NEW YORK WANT TO BUY A NEW BOND ISSUED BY GRAND UNION CO A HEAVILY INDEBTED GROCERY CHAIN WITH DECLINING REVENUE THE CHAIN'S LOSSES IN A RECENT SEVENMONTH PERIOD REACHED 406 MILLION WHAT'S MORE IF THE BOTTOM FELL OUT FROM UNDER GRAND UNION TOMORROW YOU WOULDN'T BE ABLE TO SELL THE BOND THROUGH YOUR BROKER IT HASN'T YET BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION GRAND UNION IS A UNIT OF GRAND UNION HOLDINGS CORP NOT YOUR KIND OF BOND DON'T BE SO SURE YOU MAY ALREADY OWN GRAND UNION BONDS OR SIMILAR PRIVATELY PLACED BOND ISSUES THROUGH YOUR JUNK BOND MUTUAL FUND A TWOYEAR PLUNGE IN INTEREST RATES HAS BOND FUNDS OF ALL TYPES SCRAMBLING TO FIND EXTRA YIELD ONE PLACE THEY HAVE BEEN LOOKING IS IN PRIVATE PLACEMENTS OR BONDS THAT AREN'T TRADED IN THE PUBLIC MARKETS PRIVATE PLACEMENTS TYPICALLY YIELD MORE THAN PUBLICLY TRADED BONDS THE MOST AGGRESSIVE FUNDS BUYING PRIVATE PLACEMENTS ARE HIGH YIELD OR JUNK BOND FUNDS WHICH INVEST IN THE HIGHYIELDING SPECULATIVE DEBT OF COMPANIES WITH BELOWINVESTMENTGRADE CREDIT RATINGS SOME BIG BUYERS OF PRIVATE PLACEMENTS INCLUDE FUNDS FROM KEYSTONE GROUP PUTNAM COS AND MOST AGGRESSIVELY FIDELITY INVESTMENTS THE SIGHT OF JUNK FUNDS BUYING PRIVATE PLACEMENTS SIGNALS A TURNING POINT IN THE JUNK BOND MARKET THIS IS WHAT HAPPENS IN A HOT MARKET PEOPLE TRY TO MAINTAIN THEIR YIELDS AS YIELDS ARE FALLING PRECIPITOUSLY SAYS WILLIAM VERONDA MANAGER OF FINANCIAL BOND SHARESHIGH YIELD PORTFOLIO A JUNK BOND FUND WITH INVESCO FUNDS GROUP IN MR VERONDA'S VIEW THE PROBLEM ISN'T THAT THE BONDS ARE TOO RISKY RATHER HE WORRIES THAT HEAVY DEMAND IS ALLOWING SPICIER CREDITS TO SELL BONDS WITHOUT A HIGH ENOUGH INTEREST RATE TO COMPENSATE FOR THE RISKS BECAUSE NOMINAL YIELDS ARE SO LOW SAYS IAN A MACKINNON HEAD OF FIXEDINCOME INVESTING AT VANGUARD GROUP OF INVESTMENT COS YOU'LL FIND THAT THE MORE DESPERATE FUNDS ARE EMPLOYING OTHER TECHNIQUES TO BOOST YIELD NOT SO SAY HEAVY BUYERS OF PRIVATE PLACEMENTS WHO THINK THAT THEY ARE GETTING SOME OF THE BEST BARGAINS AROUND WITH THE INSURANCE COMPANIES PRETTY MUCH ON THE SIDELINES SAYS EDWARD D'ALELIO CHIEF INVESTMENT OFFICER OF THE HIGHYIELD BOND GROUP AT PUTNAM THAT DOES OPEN UP AN OPPORTUNITY FOR MUTUAL FUNDS BEFORE THE GROWTH OF THE PUBLIC JUNK BOND MARKET IN THE 1980S INSURERS WERE ABOUT THE ONLY BUYERS OF NEWISSUE JUNK BONDS WHICH THEY BOUGHT AS PRIVATE PLACEMENTS BUT TO COMPENSATE FOR THEIR INABILITY TO TRADE PRIVATE PLACEMENTS PAY A HIGHER RATE OF INTEREST THAN PUBLIC BONDS THEY ALSO HAVE STRICTER COVENANTS CONTRACTUAL BARRIERS TO CERTAIN ACTIONS BY THE ISSUER THAT COULD REDUCE THE VALUE OF THE BONDS INSURANCE COMPANIES STILL BUY 50 TO 75 OF ALL PRIVATE PLACEMENT DEALS SAYS STEPHEN GRAY DIRECTOR OF PRIVATE PLACEMENTS AT SALOMON BROTHERS INC PENSION FUNDS ARE ALSO BUYERS BUT AS INSURERS' ASSET QUALITY CAME UNDER FIRE MANY HAVE SLASHED THEIR PURCHASES OF JUNKBOND PRIVATE PLACEMENTS AND THE MUTUAL FUND COMPANIES ARE STEPPING IN TO TAKE THEIR PLACE AS BUYERS WHY HAVE JUNK FUNDS PLUNGED INTO PRIVATE PLACEMENTS MUTUAL FUNDS ARE ALLOWED TO OWN ONLY A LIMITED PERCENTAGE OF ILLIQUID OR DIFFICULTTOTRADE SECURITIES INCLUDING PRIVATE PLACEMENTS BUT LAST YEAR IN A BID TO BOOST INVESTMENT IN SMALL BUSINESSES THE SEC ALLOWED MUTUAL FUNDS TO INCREASE THEIR HOLDINGS OF ILLIQUID SECURITIES FROM 10 TO 15 OF THEIR PORTFOLIOS BUT HOLDING ILLIQUID SECURITIES POSES A RISK FOR MUTUAL FUNDS BECAUSE THEY MIGHT NEED TO SELL BONDS TO PAY OFF DEPARTING INVESTORS AND AN ILLIQUID BOND IS BY DEFINITION HARD TO SELL OCCASIONALLY INVESTORS LEAVE FUNDS IN DROVES IN OCTOBER SHAREHOLDERS YANKED 26 BILLION OUT OF JUNK BOND FUNDS ACCORDING TO AMG DATA SERVICES FUNDS GOT SOME HELP HOWEVER WHEN THE SEC ADOPTED RULE 144A WHICH ALLOWS SALES OF UNREGISTERED SECURITIES TO QUALIFIED IE EXTREMELY LARGE INSTITUTIONAL BUYERS BY HELPING TO CREATE A SECONDARY MARKET WHERE PRIVATE PLACEMENTS COULD BE TRADED RULE 144A ADOPTED IN 1990 MADE THESE ISSUES MORE ATTRACTIVE TO MUTUAL FUNDS MERRILL LYNCH & CO SAW ITS BROKERING OF 144A DEALS GROW TO 43 BILLION IN 1992 UP FROM 2 BILLION THE PREVIOUS YEAR SAYS TERRENCE MARTIN DIRECTOR OF PRIVATE PLACEMENTS WITHOUT MUTUAL FUNDS' INTEREST WE WOULDN'T HAVE BEEN ABLE TO DO IT HE SAYS SO FAR MOST FUNDS STILL COUNT 144A BONDS AS PART OF THEIR ILLIQUIDSECURITIES BASKET INVESTORS DEBATE HOW EASILY TRADED 144A BONDS REALLY ARE IF YOU'VE GOT A 144A AND IT'S A TRIPLEBMINUS AND IN A TROUBLED INDUSTRY YOU DON'T HAVE A LIQUID CREDIT SAYS JOHN CARTLAND III A VICE PRESIDENT AT TRAVELERS CORP BUT MANY FUND MANAGERS SAY THAT ALMOST ANY JUNK BOND CAN BE TOUGH TO SELL AT TIMES AND THAT SOME OF THEIR 144A PRIVATE PLACEMENTS ARE PROBABLY EASIER TO SELL THAN SOME OF THEIR PUBLICLY ISSUED BONDS MOREOVER MANY OF THE 144A BONDS BOUGHT BY MUTUAL FUNDS COME WITH REGISTRATION RIGHTS MEANING THAT THE BONDS WILL BECOME REGISTERED FOR PUBLIC TRADING WITHIN SIX MONTHS OF ISSUANCEOR ELSE END UP PAYING EVEN HIGHER COUPONS TO INVESTORS ONE PRIVATE DEAL THAT TYPIFIES THE RISK MUTUAL FUNDS ARE TAKING ON WAS THE RECENT OFFERING OF 1175 SIXYEAR NOTES BY GRAND UNION ACCORDING TO THE OFFERING CIRCULAR FOR THIS 144A DEAL GRAND UNION'S HIGH LEVEL OF DEBT POSES SUBSTANTIAL RISK TO BONDHOLDERS THE ISSUE WAS RATED SINGLEBPLUS BY STANDARD & POOR'S CORP AND SINGLEB2 BY MOODY'S INVESTORS SERVICE INC DEMAND WAS BRISK FOR THIS DEAL AND THE LEAD UNDERWRITERS GOLDMAN SACHS & CO AND BT SECURITIES CORP ENDED UP SELLING 175 MILLION OF THE NOTES IF THE COMPANY LATER REGISTERS THE OFFERING AS A PUBLIC DEAL WITH THE SEC THE COUPON WILL DROP TO 11375 FUND BUYERS INCLUDED KEYSTONE PUTNAM AND FIDELITY ONE FUND INVESTING IN PRIVATE PLACEMENTS IS FIDELITY CAPITAL & INCOME A 17 BILLION MUTUAL FUND THE FUND ALSO BUYS DISTRESSED BANK LOANS AND OFFICIALS AT FIDELITY ATTRIBUTE ITS HIGH RETURNS TO BOLD INVESTMENTS THE FUND HAD A TOTAL RETURN IN 1992 INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS OF 284 VERSUS 177 FOR JUNK BOND FUNDS ON AVERAGE ACCORDING TO MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER UNLIKE MANY JUNK BOND FUNDS FIDELITY CAPITAL & INCOME TREATS SOME 144A PRIVATE PLACEMENTS AS EASILY TRADABLE SECURITIES ALLOWING THE FUND TO BUY PRIVATE PLACEMENTS IN EXCESS OF THE 15 LIMIT ON ILLIQUID SECURITIES ALTHOUGH IT DIDN'T RATE THIS ISSUE DUFF & PHELPS/MCM INVESTMENT RESEARCH CO HAS GIVEN OTHER NH HOLDING ISSUES A VERY HIGH DEFAULTRISK RATING THOUGH IT RECOMMENDS THEM AS A BUY FOR THOSE WITH THE STOMACH TO ACCEPT SUCH RISKS WE VIEW IT AS A HIGHLY SPECULATIVE CREDIT SAYS TERRENCE K DWYER AN ANALYST AT DUFF & PHELPS ON A SCALE OF 1 TO 7 WITH THE HIGHER NUMBER REPRESENTING GREATER DEFAULT RISK DUFF & PHELPS RATES THE NH HOLDING ISSUES A 6 THOMAS LIBASSI AN ANALYST AT KEYSTONE SAYS THAT AMPEX PRESENTS A UNIQUE OPPORTUNITY THE COMPANY HAS USED VIDEOTAPE TO CREATE A HIGHLY ADVANCED DATASTORAGE DEVICE MR LIBASSI SAYS COUNTING BOTH THE BONDS' 14 COUPON AND WARRANTS TO BUY STOCK IN THE COMPANY MR LIBASSI EXPECTS A RETURN OF MORE THAN 30 A YEAR FOR THE NEXT THREE YEARS NOT EVEN CRITICS OF THE MORE VENTURESOME FUNDS EXPECT A WHOLESALE COLLAPSE OF THE JUNK BOND MARKET ANYTIME SOON BUT THEY CAUTION THAN JUNK BONDS ARE NOT TAME THEY'RE LIKE THE LIONS IN THE CIRCUS SAYS INVESCO'S MR VERONDA THEY LOOK TAME AND DOCILE FOR A WHILE BUT EVERY ONCE IN A WHILE THEY ATTACK AND MAUL YOU PRICES OF TREASURY NOTES AND BONDS ROSE AS MUCH AS 1/2 POINT AS INVESTORS SHRUGGED OFF MORE NEWS INDICATING ECONOMIC STRENGTH THE 30YEAR TREASURY BOND ROSE NEARLY 3/8 POINT TO 105 19/32 TO YIELD 716 DOWN FROM 718 ON THURSDAY AS IN THE REST OF THE WEEK THE YIELD CONTINUED TO HOVER AT ITS LOWEST LEVEL SINCE AUGUST 1986 PRICES FOR SOME INTERMEDIATE URITIES ROSE EVEN MORE THE SEVENYEAR NOTE FOR EXAMPLE ROSE 1/2 POINT TO 102 23/32 TO YIELD 587 DOWN FROM 596 MEANWHILE MUNICIPAL BONDS ROSE 1/8 POINT TO 3/8 POINT INVESTMENTGRADE CORPORATE BONDS ROSE 1/8 POINT TO 3/8 POINT WHILE JUNK BONDS ROSE 1/8 POINT COMPANIES ISSUED 17 BILLLION IN NEW BONDS FRIDAY TO TAKE ADVANTAGE OF LOW INTEREST RATES THE BOND MARKETS ARE FOCUSING ON FISCAL POLICY AND DEFICIT REDUCTION SAID MATTHEW ALEXY A MARKET STRATEGIST AT FIRST BOSTON CORP EVERYONE IS WAITING FOR PRESIDENT CLINTON TO REVEAL HIS PROGRAM ON FEBRUARY 17 DURING HIS STATE OF THE UNION ADDRESS FOR WEEKS THE BOND MARKETS HAVE BEEN RALLYING IN ANTICIPATION OF A MODERATE SHORTTERM SPENDING PROGRAM AND A STRONG DEFICITREDUCTION PLAN FROM THE CLINTON ADMINISTRATION NEWS THAT THE TREASURY IS CONSIDERING FURTHER REDUCTIONS IN THE SUPPLY OF 30YEAR BONDS HAS ALSO HELPED ON FRIDAY THE LABOR DEPARTMENT REPORTED NONFARM PAYROLL EMPLOYMENT ROSE 106000 IN JANUARY WHICH FOLLOWED AN UPWARDLY REVISED 90000 GAIN IN DECEMBER AND WAS IN LINE WITH EXPECTATIONS THE UNEMPLOYMENT RATE MEANWHILE UNEXPECTEDLY FELL TO 71 IN JANUARY FROM 73 IN DECEMBER SHORTLY AFTER THE MORNING RELEASE OF THE REPORT TRADERS TRIED TO PUSH PRICES LOWER AS THEY LOOKED TO PREPARE FOR THIS WEEK'S SCHEDULED QUARTERLY REFUNDING AUCTIONS BY THE TREASURY BUT AS THE MARKET MOVED LOWER IT ONCE AGAIN WAS MET WITH SOLID BUYING INTEREST FROM INVESTORS THAT BUYING SENT PRICES HIGHER RIGHT UP TO THE END OF TRADING PARTICULARLY IN THE INTERMEDIATEMATURITY SECTOR THE REVERSAL FRIDAY WAS TYPICAL OF THE MARKET'S MOVEMENTS IN RECENT SESSIONS THE MARKET TRADES DOWN A BIT AND YOU BUY THE DIP SAID MICHAEL STRAUSS CHIEF ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC LATE IN THE TRADING SESSION THE MINUTES OF THE DEC 22 1992 MEETING OF THE FEDERAL OPEN MARKET COMMITTEE WERE RELEASED THE FOMC IS THE POLICYMAKING BODY OF THE FEDERAL RESERVE THE MINUTES SHOWED THAT THE CENTRAL BANK VOTED TO LEAVE MONETARY POLICY UNCHANGED AND ADOPTED WHAT IS KNOWN AS AN UNBIASED DIRECTIVE TOWARD INTEREST RATES IN LATE WHENISSUED TRADING FRIDAY THE 30YEAR BOND SCHEDULED TO BE AUCTIONED THIS THURSDAY YIELDED 712 DOWN FROM 715 THE 10YEAR NOTE TO BE AUCTIONED WEDNESDAY YIELDED 626 DOWN FROM 635 AND THE THREEYEAR NOTE TO BE AUCTIONED TOMORROW YIELDED 462 DOWN FROM 471 9302080044 930208 NEW YORK FED SAYS TREASURY SQUEEZES IN '92 WERE MOSTLY DUE TO NATURAL FORCES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BANK OF NEW YORK ATTRIBUTED A RASH OF SQUEEZES IN THE TREASURY BOND MARKET IN 1992 PRIMARILY TO NATURAL FORCES THAT COULD WELL PRODUCE MORE SQUEEZES THIS YEAR BUT SAID SOME MARKET BEHAVIOR CAN RAISE CONCERNS OF MANIPULATION IN A REPORT TO BE RELEASED THIS WEEK NEW YORK FED PRESIDENT E GERALD CORRIGAN SUGGESTED THAT MORE SQUEEZES MAY BE ON THE WAY SAYING EARLY SIGNS INDICATE MANY OF THE FACTORS WHICH LED NATURALLY TO SQUEEZES IN 1992 MIGHT BE AT WORK AGAIN IN EARLY 1993 THE REPORT MADE IN RESPONSE TO CONGRESSIONAL QUERIES ABOUT PERSISTENT TREASURY MARKET SQUEEZES IN THE WAKE OF THE SALOMON BROTHERS INC BOND SCANDAL PROVIDES THE NEW YORK FED'S MOST COMPREHENSIVE ACCOUNT OF THESE SQUEEZES ON BALANCE OUR INQUIRIES REVEALED INCIDENTS WHERE ACTIVE FINANCINGMARKET PARTICIPANTS RESPONDED TO GENUINE ECONOMIC INCENTIVES MR CORRIGAN SAID IN THE REPORT HOWEVER HE ADDED POINTEDLY WE REMAIN MINDFUL THAT THE MANNER IN WHICH THESE MARKET PARTICIPANTS PURSUE PROFIT OPPORTUNITIES CAN RAISE CONCERNS OF WHETHER SOME PARTICIPANTS EXERT ANY UNDUE INFLUENCE ON MARKET PRICES AND FINANCING RATES REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE PANEL THAT RECEIVED THE NEW YORK FED'S REPORT SAID THE ATTENTION FOCUSED ON SALOMON'S BIDDING VIOLATIONS SHOULD NOT OBSCURE THE FACT THAT EVEN WITHOUT BREAKING THE AUCTION RULES IT REMAINS POSSIBLE TO MANIPULATE PRICES IN THIS MARKET BY GENERATING ARTIFICIAL SHORTAGES HE SAID REGULATION HAS COME A LONG WAY FROM THE HEARNOEVIL SEENOEVIL APPROACH THAT PREVAILED BEFORE THE SALOMON SCANDAL BUT VOICED CONCERN THAT REGULATORS NEED MORE TOOLS TO COMBAT MANIPULATIVE SQUEEZES THE NEW YORK FED'S REPORT DISCUSSED SEVERAL SPECIFIC 1992 SQUEEZES IN DETAIL BUT MENTIONED NO FIRMS BY NAME AND RAISED NO RED FLAGS OF SUSPECTED MISCONDUCT IT DID NOTE THE NEW YORK FED HELD NUMEROUS CONVERSATIONS WITH ONE ENTITY THAT HAD A LARGE POSITION IN A SCARCE ISSUE AND THAT THE DETAILS OF ANOTHER SQUEEZE WERE DISCUSSED WITH AN INTERAGENCY WORKING GROUP THAT INCLUDES THE SECURITIES AND EXCHANGE COMMISSION THE FACT THAT SQUEEZES OR SHORT SUPPLIES OF INDIVIDUAL GOVERNMENT SECURITIES ISSUES CAN AND DO OCCUR QUITE LEGITIMATELY HAS NOT LED TO ANY RELAXATION OF OUR EFFORTS TO MONITOR THE MARKET CLOSELY TO SEEK TO DETECT ANY CASES OF ABUSIVE ACTIVITY MR CORRIGAN SAID IN SUBMITTING THE REPORT TO THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE THE LIQUID EFFICIENT NATURE OF THE MARKET CAN LEAD TO THE DEVELOPMENT OF APPARENT SHORTAGES OF INDIVIDUAL TREASURY SECURITIES WHICH CAN OCCUR AS A NATURAL CONSEQUENCE OF LEGITIMATE TRADING STRATEGIES AND INFREQUENT BUT DEEPLY TROUBLING ABUSES MR CORRIGAN SAID HE SAID REFORMS UNDERTAKEN SINCE THE SALOMON BROTHERS SCANDAL MATERIALLY REDUCE THE POSSIBILITY OF A WRONGFUL SQUEEZE A SQUEEZE IN TREASURY NOTES SOLD IN MAY 1991 LED TO INVESTIGATIONS OF SALOMON BROTHERS EVENTUAL SEC CHARGES FOCUSED ON SALOMON'S AUCTION VIOLATIONS BUT THE JUSTICE DEPARTMENT CHARGED SALOMON WITH BREAKING THE ANTITRUST LAWS BY MANIPULATING THE MAY NOTES ALONG WITH UNNAMED COCONSPIRATORS SALOMON SETTLED THE ANTITRUST COMPLAINT WITHOUT ADMITTING WRONGDOING A FEDERAL GRAND JURY IN NEW YORK CONTINUES TO REVIEW THE MAY 1991 SQUEEZE AS WELL AS A SEVERE SQUEEZE IN APRIL 1991 NOTES AND OTHER MATTERS POSING ANTITRUST QUESTIONS ELABORATING ON THE ROLE OF NATURAL FORCES IN FOSTERING SQUEEZES OF SECURITIES MR CORRIGAN SAID TREASURY SECURITIES ARE PRIME TOOLS FOR HEDGING POSITIONS IN OTHER MARKETS AND WERE MUCH IN DEMAND FOR HEDGING LAST YEAR DUE TO RECORD UNDERWRITING VOLUMES IN OTHER MARKETS HE EXPLAINED THAT DEALERS HEDGING POSITIONS OFTEN SELL TREASURY SECURITIES SHORT THAT IS SELL SECURITIES THEY DON'T OWN BUT ARE OBLIGATED TO DELIVER AND MUST ACQUIRE THESE DEALERS CAN PAY DEARLY TO OBTAIN NEEDED SECURITIES IF THOSE SECURITIES ARE SCARCE BUT MR CORRIGAN SAID HE REMAINS AWARE THAT A MARKET PARTICIPANT ACTING ALONE OR ACTING IN CONCERT WITH OTHERS COULD ATTEMPT TO CORNER OR MANIPULATE THE MARKET FOR A PARTICULAR SECURITY WITH THE INTENTION OF GENERATING AN ARTIFICIAL SHORTAGE REP MARKEY SAID THE FED'S OVERALL APPROACH TO THE POSSIBILITY OF MARKET MANIPULATION SEEMS TO BE THAT THEY CAN'T ALWAYS DEFINE IT BUT THEY'LL KNOW IT WHEN THEY SEE IT HE SAID A STRICTER STANDARD IS NEEDED 9302080043 930208 LEISURE & ARTS BOOKSHELF WINDOW ON THE LIFE OF A LAWYER/NOVELIST BY JOSEPH OLSHAN LOUIS BEGLEY'S PRIZEWINNING WARTIME LIES WAS A MASTERFULLY WROUGHT FIRST NOVEL CAST FROM THE POINT OF VIEW OF A JEWISH CHILD HIDING FROM THE NAZIS IN OCCUPIED POLAND DURING WORLD WAR II THE AUTHOR A PROMINENT NEW YORK LAWYER RELIED SOMEWHAT HEAVILY ON A DOCUMENTARY EVOCATION OF HARROWING EVENTS AND YET ONE FELT THAT A DELIBERATE CHOICE HAD BEEN MADE TO KEEP THE SEASONED HINDSIGHT OF A HOLOCAUST SURVIVOR OFFSTAGE THE ART OF WARTIME LIES ULTIMATELY LAY IN THE AUTHOR'S CAREFUL DISTILLATION OF FICTIONAL MATERIAL FROM A VOLUMINOUS CATALOG OF MEMORY IRONICALLY MR BEGLEY GIVES THE READER AN ENTIRE MEMORY CATALOG IN HIS SECOND NOVEL THE MAN WHO WAS LATE KNOPF 256 PAGES 21 THE STORY OF A FRIENDSHIP BETWEEN TWO MEN THAT SPANS CONTINENTS AS WELL AS DECADES FIRSTHAND AND SECONDHAND REMINISCENCES OF THIS FRIENDSHIP ARE RELATED BY ONE OF THE MEN JACK WHO THEN REVEALS THE CONTENTS OF LETTERS AND DIARIES THAT HE HAS INHERITED FROM BEN HIS OLDEST FRIEND AND ONCEUPONATIME HARVARD ROOMMATE JACK BRIEFLY ENJOYED A PRECOCIOUS CELEBRITY DUE TO A SHORT NOVEL I PUBLISHED AT MIDPOINT BETWEEN THE APPEARANCE OF THE OLD MAN AND THE SEA' AND GOODBYE COLUMBUS' NOW EMPLOYED AS A MAGAZINE JOURNALIST HE RECOUNTS BEN'S LIFE WITH RELISH SOME INSPIRED EMBELLISHMENT AND UNFORTUNATELY A GREAT DEAL OF OVERSTATEMENT THE FIRST HUNDRED PAGES BASICALLY RECAP BEN'S MARRIAGE TO AN OLDER WOMAN HIS ADOPTING OF HER TWO CHILDREN HIS SUBSEQUENT DIVORCE AND MOVE TO PARIS ONCE ESTABLISHED IN EUROPE BEN DRIFTS FROM ONE UNSUITABLE HIGHLY SEXUALIZED INVOLVEMENT TO ANOTHER UNTIL HE EVENTUALLY BECOMES ENTANGLED WITH JACK'S MARRIED COUSIN VERONIQUE THE STORY OF BEN'S DESPERATE AFFAIR WITH VERONIQUE AND HIS DECLINE INTO DEPRESSION OCCUPIES THE CENTER OF A NOVEL THAT DIVIDES ITSELF BETWEEN PARIS WHERE BEN REMAINS THROUGHOUT MOST OF HIS LIFE AND NEW YORK WHERE JACK CONTINUES TO LIVE ALTHOUGH THERE IS SOME FLUID AND ADMIRABLE WRITING THROUGHOUT THE BOOK THE OVERALL TONE IS ODDLY SMUG TAKE FOR EXAMPLE JACK'S DESCRIPTION OF BEN CHANGING INTO ONE OF TWO IDENTICAL BLUE SUITS IT OCCURRED TO ME THAT HE HAD BECOME THICKER IN THE TORSO AND PERHAPS EVEN IN THE WAIST A CIRCUMSTANCE THAT MIGHT ACCOUNT FOR THE PROLIFERATION OF THESE IDENTICAL GARMENTS HAD BEN DECIDED THAT THIS EBB AND TIDE OF CONTOUR MUST NOT STAND IN THE WAY OF HIS DONNING A FAVORITE CHEVIOT OR FLANNEL SO THAT THERE EXISTED A LEAN TEAM AND A FAT TEAM THE GIFTED MR BEGLEY WHO IS CLEARLY ABLE TO WRITE CRYSTALLINE PROSE OBVIOUSLY INTENDS SUCH AN ORNATE PASSAGE HE SEEMS COMPELLED TO WRITE A NOVEL THAT IS KEEN ON BEHAVIORAL NUANCE AND SHREWD SOCIAL COMMENTARY YET BOTH ASPECTS ARE CURIOUSLY MISSING FROM THE MAN WHO WAS LATE FOR WHILE MR BEGLEY HEAPS ON THE FACTS ABOUT WINES AND FOODS AND SILK SCARVES ONE GROWS AWARE OF A CERTAIN LACK OF INCISIVE ATTENTION PAID TO THE KINDS OF CHARACTERBUILDING PARTICULARS THAT WOULD DEEPEN OUR SENSE OF BEN AS WELL AS OF JACK THE NARRATOR WHAT WE DO GET HOWEVER IS A STRONG SENSE OF BEN'S MATERIALISTIC LONELINESS THROUGH DESCRIPTIONS OF THE MINUTIAE OF HIS EVERYDAY ROUTINES MORNING ABLUTIONS ELABORATE DINNERS JOURNEYS ABROAD WHERE HE MAKES FINANCIAL DEALS OF MONUMENTAL IMPORTANCE AND THEN GOES BACK TO HIS HOTEL ROOM TO DRINK HIMSELF INTO A STUPOR LONGING FOR VERONIQUE SO MANY THOUSANDS OF MILES AWAY BUT THEN MR BEGLEY COMES TO RELY UPON HIS SENSE OF DETAIL A BIT TOO MUCH SO THAT BY THE END OF THE NOVEL WHEN BEN IS SUPPOSED TO BE DEPRESSED HIS FIXATION ON CASHMERE SWEATERS IN A SHOP OR DESCRIPTION OF HOW SUNLIGHT DAPPLES A PLAYGROUND FULL OF CHILDREN CLEARLY LACKS AN AUTHENTIC SPIRITUAL DESPAIR AND YET IF ONE WERE TO TAKE THESE CHARACTERS OF BEN AND JACK AND POSITION THEM UP AGAINST MR BEGLEY THE INTERNATIONAL LAWYER WHO WRITES FICTION WE SUDDENLY WOULD HAVE A VERY CLEAR WINDOW INTO THE WORKING OF THIS NOVEL FOR EARLY ON THE NARRATOR CLAIMS A TAX ACCOUNTANT A FRUSTRATED CONSTITUTIONAL LAWYER AND AN INVESTMENT BANKER LURK INSIDE EVERY WRITER THIS ATTEMPT AT A POLEMIC IS REALLY THE AUTHOR'S CONFESSION OF HOW HE ATTEMPTED TO DRAMATIZE THE TWO HATS HE WEARS IN REAL LIFE THAT OF A NOVELIST AND AN INTERNATIONAL BUSINESSMAN IT'S AS THOUGH HE SEEKS TO PROVE THAT THESE TWO LIFESTYLES CAN BE MORE EASILY WEDDED IN FICTION THAN IN FACT BUT THEY CLEARLY CANNOT BE WEDDED IN THE WAY THE AUTHOR INTENDS AND IN THE END THE MAN WHO WAS LATE BECOMES LIKE A LEGAL ARGUMENT ON THE LOSING SIDE NEARLY CONVINCING AND INCANDESCENT AT TIMES BUT ULTIMATELY SPECIOUS AND YET MR BEGLEY IS CLEARLY A VERY GIFTED WRITER WHO HAS A SHARP EYE FOR CULTURAL DETAILS A KEEN SENSUAL FEELING FOR THE REFINEMENTS THAT PRIVILEGED LIFE HAS TO OFFER ONE ONLY HOPES THAT HIS NEXT SUBJECT WILL BE MORE CAREFULLY CHOSEN SOMETHING TO WHICH HE WILL BE ABLE TO SUCCESSFULLY GRAFT HIS CONSIDERABLE TALENT SO THAT THE RESULTING FICTION WILL TRULY FLOWER MR OLSHAN IS A NOVELIST AND CRITIC 9302080042 930208 COMMODITIES OIL FUTURES PRICES ARE EXPECTED TO STAY FIRM AMID HOPES THAT OPEC WILL VOTE TO CUT OUTPUT BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON PETROLEUM PRICES ARE LIKELY TO REMAIN FIRM THIS WEEK AS OIL MARKETS FOCUS ON THE OPEC MEETING THAT BEGINS SATURDAY IN VIENNA ANALYSTS AGREE THAT THIS IS A CRUCIAL MEETING OF THE OIL MINISTERS FOR THE WORLD OIL INDUSTRY AND FOR OIL CONSUMERS ITS OUTCOME CAN SET THE COURSE FOR PRICES FOR THE SECOND QUARTER AND POSSIBLY BEYOND ALREADY UP 1 TO 2 A BARREL WITHIN THE PAST TWO WEEKS OIL PRICES MAY RISE FURTHER AS A RESULT OF THE MEETING OR THEY COULD PLUNGE IF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES DOESN'T AGREE ON SIGNIFICANT PRODUCTION CUTS OPEC IS WIDELY EXPECTED TO REDUCE OUTPUT CURRENTLY NEARLY 25 MILLION BARRELS A DAY BY AS MUCH AS ONE MILLION BARRELS A DAY FOR THE SEASONALLY WEAK DEMAND PERIOD OF THE SECOND QUARTER SAUDI ARABIA OPEC'S LEADING PRODUCER HAS CALLED FOR SUCH A CUT THE KINGDOM'S RECOMMENDATION WAS SUPPORTED BY IRAN OPEC'S NO 2 PRODUCER AND IS CREDITED FOR CAUSING THE RECENT PRICE RUNUP FURTHER SUPPORT FOR OIL PRICES MAY BE PROVIDED THIS WEEK BY HISHAM NAZER THE INFLUENTIAL SAUDI OIL MINISTER HE IS TO SPEAK HERE WEDNESDAY AT THE ANNUAL ENERGY CONFERENCE OF CAMBRIDGE ENERGY RESEARCH ASSOCIATES BUT SOME OIL PRICES DROPPED SLIGHTLY FRIDAY ON REPORTS THAT NEITHER INDONESIA NOR KUWAIT WOULD BE WILLING TO CUT OUTPUT ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY SETTLED NINE CENTS LOWER AT 2021 A BARREL A STATEMENT FROM GINANDJAR KARTASASMITA INDONESIA'S OIL MINISTER CONTRIBUTED TO THE SKEPTICISM THAT OPEC WILL BE ABLE TO AGREE ON A PRODUCTION CUT OF THE SIZE RECOMMENDED BY MR NAZER THE STATEMENT REPORTED FRIDAY BY THE OPEC NEWS AGENCY SAID THAT WHILE INDONESIA SUPPORTED A DECISION BY THE EXPORTERS TO REDUCE THE CEILING IT WOULD NOT CUT ITS OWN 14 MILLION BARRELS A DAY MR GINANDJAR OFTEN TAKES A MODERATING ROLE IN OPEC AFFAIRS HOWEVER AND IS UNLIKELY TO POSE ANY OBSTACLE TO AN AGREEMENT ON SATURDAY ACCORDING TO WIRE SERVICES MR GINANDJAR CALLED ON OPEC MEMBERS TO CUT PRODUCTION WE CAN'T EXPECT TO PUSH UP THE PRICE WHILE INCREASING SUPPLY TO THE MARKET MR GINANDJAR SAID AFTER A MEETING WITH INDONESIA'S PRESIDENT SUHARTO KUWAIT'S OIL MINISTER ALI ALBAGHLI WAS QUOTED BY A KUWAITI NEWSPAPER MEANWHILE AS SAYING THE EMIRATE WOULD SEEK TO AVOID A CUT IN ITS OUTPUT BECAUSE IT NEEDS THE REVENUE TO FINANCE THE COUNTRY'S RECONSTRUCTION FOLLOWING THE PERSIAN GULF WAR HE SAID HE EXPECTS OTHERS IN OPEC TO CONTINUE TO RESPECT KUWAIT'S SPECIAL SITUATION SOME DELEGATES FROM OTHER OPEC MEMBER STATES SUGGESTED THAT KUWAIT STILL MAY BE GIVEN SPECIAL TREATMENT KUWAIT WILL RAISE SOME QUESTIONS SAID A DELEGATE FROM A PERSIAN GULF PRODUCER AND THERE WILL BE SOME MASSAGING OF THE FIGURES HERE AND THERE SAUDI ARABIA RECOMMENDED THAT ITS PROPOSED CUT OF ONE MILLION BARRELS A DAY FOR ALL OF OPEC BE APPLIED ON A PROPORTIONAL BASIS TO THE WIDELY IGNORED FIRSTQUARTER PRODUCTION CEILING OF 246 MILLION BARRELS A DAY RATHER THAN TO ACTUAL CURRENT OUTPUT THAT WOULD SUGGEST A TOTAL CUT OF NEARLY 14 MILLION BARRELS A DAY IF 11 MEMBER NATIONS ADHERED TO NEW LOWER QUOTAS IRAQ THE 12TH MEMBER REMAINS BANNED BY THE UNITED NATIONS FROM EXPORTING ANY OIL FEW IN THE OIL INDUSTRY BELIEVE THAT OPEC WILL BE ABLE TO REDUCE PRODUCTION BY AS MUCH AS SAUDI ARABIA RECOMMENDS BUT A SMALLER REDUCTION MAY BE ENOUGH TO HOLD PRICES FIRM SOME ANALYSTS SAID BRYAN JACOBOSKI AN INTERNATIONAL OIL ANALYST WITH PAINEWEBBER INC ESTIMATED SECONDQUARTER DEMAND FOR OPEC OIL WILL AVERAGE 245 MILLION BARRELS A DAY NEARLY AS MUCH AS OPEC IS NOW PRODUCING AS A RESULT HE SAID THE SAUDI RECOMMENDED CUT OF ONE MILLION BARRELS A DAY SHOULD BE SUFFICIENT TO BALANCE THE MARKET EVEN IF KUWAIT REFUSES TO PARTICIPATE AND OTHERS PRODUCE SLIGHTLY ABOVEQUOTA ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT ALSO WAS SCHEDULED TO SPEAK AT THE CAMBRIDGE ENERGY CONFERENCE IN HOUSTON BUT HE HAD TO CANCEL LAST WEEK BECAUSE OF FURTHER VISITS TO OTHER OPEC COUNTRIES IN HIS CAMPAIGN TO REACH A CONSENSUS ON PRODUCTION CUTS BEFORE THE VIENNA MEETING BEGINS THERE IS A GREAT LIKELIHOOD THAT AN OPEC AGREEMENT TO CUT BACK PRODUCTION WILL BE REACHED AT THE VIENNA MEETING SAID FEREIDUN FESHARAKI RESOURCES PROGRAM DIRECTOR AT HONOLULU'S EASTWEST CENTER THE SIGNIFICANT FACTOR HE ADDED IS WHETHER OPEC CAN PERSUADE THE MARKET THAT THIS TIME IT MEANS BUSINESS STILL HE EXPECTS PRICES ARE LIKELY TO RISE IN FEBRUARY WITH THE US BENCHMARK CRUDE REACHING 22 A BARREL IN THE MARCHAPRIL PERIOD LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK ORANGE JUICE WITH THE END OF THE WINTER FREEZE SEASON FAST APPROACHING ANALYSTS AND TRADERS SAID THEY EXPECT TO SEE FURTHER DECLINES IN ORANGE JUICE FUTURES PRICES THE WEATHER HAS BEEN NEAR IDEAL WITH NO WINTER FREEZE THREAT IN SIGHT SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH MOREOVER THE GROWING PERCEPTION OF A LARGE GLOBAL OVERSUPPLY OF ORANGES WILL CONTINUE TO PRESS ON CONCENTRATED ORANGE JUICE FUTURES PRICES HE SAID NOTING THAT BOTH FLORIDA AND BRAZIL HAVE PRODUCED BUMPER CROPS THIS SEASON ON FRIDAY ORANGE JUICE FOR MARCH DELIVERY SETTLED 240 CENTS LOWER AT 6795 CENTS A POUND ON THE NEW YORK COTTON EXCHANGE COPPER COPPER FUTURES PRICES WHICH HAVE BEEN TRADING IN A NARROW RANGE JUST BELOW 1 POUND ARE POISED TO BREAK THROUGH THAT RESISTANCE LEVEL ANALYSTS SAID A RECENT SPATE OF BULLISH ECONOMIC STATISTICS FROM THE US AND A RECENT WAVE OF INTEREST RATE CUTS BY BRITAIN JAPAN AND GERMANY ARE ALL RATHER ENCOURAGING FOR COPPER PRICES IN GENERAL SAID FRED DEMLER A SENIOR METALS ECONOMIST WITH PAINEWEBBER COPPER IS A BROADLY USED INDUSTRIAL METAL COPPER FOR MARCH DELIVERY ENDED FRIDAY DOWN 005 CENT AT 9990 CENTS ON THE NEW YORK COMMODITY EXCHANGE ANALYSTS NOTED THAT SEASONAL DEMAND FOR COPPER TENDS TO PICK UP IN FEBRUARY AND MARCH I WOULDN'T BE SURPRISED TO SEE COPPER AT 103 TO 104 IN THE NEXT COUPLE OF WEEKS MR DEMLER PREDICTED HE NOTED THAT US CONSUMPTION OF COPPER ROSE SHARPLY IN 1992 UP NEARLY 11 FROM 1991 9302080041 930208 CORPORATE FOCUS CALPIS FINDS RECIPE FOR INSTANT SUCCESS JUST ADD WATER SALES ARE EASING BUT A NEW MIX MAKES JAPANESE DRINK MAKER FIZZ AGAIN BY MASAYOSHI KANABAYASHI AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO IT WAS 1991 AND THREE STRAIGHT YEARS OF OPERATING LOSSES HAD LEFT A SOUR TASTE IN THE MOUTH OF JAPAN'S CALPIS FOOD INDUSTRY CO SALES OF CALPIS CONCENTRATEAN ACIDIC MILKBASED SOFT DRINK ONCE PITCHED IN JAPAN BY THE OSMOND BROTHERS WERE OFF SHARPLY FROM THEIR EARLY 1970S PEAK SO THE COMPANY'S SOFTSPOKEN BUT AGGRESSIVE NEW PRESIDENT SHUNSUKE INAMORI CAME UP WITH A SIMPLE SOLUTION WATER DOWN THE CONCENTRATED BEVERAGE SALES ROCKETED CALPIS WHOSE SHARES TRADE AS AMERICAN DEPOSITARY RECEIPTS IN NEW YORK SHIPPED FIVE TIMES AS MUCH OF THE NEW DRINK CALPIS WATER AS IT HAD PROJECTED OPERATING RESULTS REBOUNDED IN 1991 TO A 159 BILLION YEN 128 MILLION PROFIT FROM A 113 BILLION YEN LOSS IN 1990 CALPIS WATER AND CALPIS CONCENTRATE COMBINED ARE NOW JAPAN'S THIRD BESTSELLING SOFT DRINK MR INAMORI INSISTS THE 74YEAROLD CALPIS BRAND NAME IS AS POWERFUL AS COCACOLA JAPAN'S NO 1 SOFT DRINK CALPIS HAS BEEN A JAPANESE INSTITUTION OF SORTS SINCE THE COMPANY'S FOUNDER KAIUN MISHIMA INVENTED IT IN 1919 AFTER DRINKING A FERMENTEDMILK CONCOCTION IN MONGOLIA TODAY MR INAMORI A PROFESSED ADMIRER OF REAGANOMICS AND THE US TAKEOVER BOOM OF THE 1980S SAYS HE HAS BEGUN TO TAKE CALPIS WATER GLOBAL AMONG THE FIRST STOPS HAWAII AND GUAM BUT THERE'S ONE TINY HITCH THE CALPIS WATER BOOM MAY BE LOSING STEAM AND SOME ANALYSTS ARE WONDERING WHETHER MR INAMORI IS TOO DEPENDENT ON HIS CASH COW IN AN INTERVIEW MR INAMORI SAYS THE COMPANY'S SALES AND PROFIT WILL BE A LITTLE LESS THAN ITS LATEST PROJECTIONS FOR 1992 THE COMPANY HAD FORECAST A PRETAX PROFIT OF 28 BILLION YEN UP FROM 186 BILLION YEN IN 1991 ON SALES OF 120 BILLION YEN UP 24 CALPIS WATER SHIPMENTS INCREASED 19 IN 1992 BUT IN THE SECOND HALF THE COMPANY SAYS SALES OF THE HIT SWEETANDSOUR DRINK FELL TO 114 MILLION CASES DOWN FROM 13 MILLION IN THE FIRST HALF THAT'S A DISCOURAGING SIGN BECAUSE CALPIS IS STILL LARGELY A ONEPRODUCT COMPANY CALPIS HAS ABOUT 80 OF JAPAN'S MARKET FOR SOCALLED LACTICACID BEVERAGES AND NEARLY 60 OF ITS REVENUE COMES FROM CALPIS WATER AND OTHER MOUTHPUCKERING DAIRY DRINKS JAPAN'S SOFT DRINK ASSOCIATION ESTIMATES THAT CALPIS WATER HAS ROUGHLY 2 OF JAPAN'S FRAGMENTED THREE TRILLION YEN SOFT DRINK MARKET COKE'S PORTION IS PEGGED AT 9 STILL CALPIS IS IN MUCH BETTER SHAPE THAN IT WAS JUST A COUPLE OF YEARS AGO ANALYSTS GIVE MUCH OF THE CREDIT TO AJINOMOTO INC A JAPANESE FOOD CONCERN KNOWN PRIMARILY AS A MAKER OF MONOSODIUM GLUTAMATE IN 1990 AJINOMOTO BOUGHT A 20 STAKE IN CALPIS FOR 20 BILLION YEN AND SOON MERGED ITS OWN SMALLER BEVERAGE OPERATION INTO THE FLOUNDERING COMPANY THE DEAL GAVE CALPIS CASH TO INCREASE CAPACITY AND ACCESS TO AJINOMOTO'S MUCH LARGER DISTRIBUTION NETWORK CALPIS SUDDENLY HAD 250 WHOLESALERS UP FROM 50 AND 15000 MORE VENDING MACHINES OMNIPRESENT IN JAPAN VENDING MACHINES ARE MAJOR SALES OUTLETS FOR DRINK MAKERS HERE AJINOMOTO'S BIGGEST CONTRIBUTION HOWEVER MAY HAVE BEEN MR INAMORI WHOM AJINOMOTO SENT TO RUN CALPIS IN 1990 ALTHOUGH CALPIS'S EARNINGS HAD BEEN LAGGING ANALYSTS SAY NET RESULTS REMAINED IN THE BLACK BECAUSE THE COMPANY HAD A STEADY STREAM OF INCOME FROM OLD STOCK AND LAND INVESTMENTS OVER TIME THE COMPANY GREW TOO CONSERVATIVE SAYS MR INAMORI EXECUTIVES HAD KICKED AROUND THE IDEA OF MARKETING CALPIS WATER FOR YEARS BUT WERE AFRAID TO STRAY FROM THE TIMEHONORED METHOD OF SELLING ITS FLAGSHIP BEVERAGE AS A BOTTLED CONCENTRATE CONVENIENCEMINDED CONSUMERS MEANWHILE COULDN'T BE BOTHERED TO DILUTE THE STUFF MR INAMORI SAYS SEVEN YEARS WITH AJINOMOTO IN AMERICA TAUGHT HIM THE NECESSITY OF QUICK AND CLEAR DECISIONMAKING HE SOON SHOOK UP CALPIS HE TOLD HIS EXECUTIVES HE WOULD TAKE THE BLAME IF CALPIS WATER FAILED AND ORDERED PRODUCTION TO BEGIN THE READYMADE DRINK WAS MADE WIDELY AVAILABLE IN VENDING MACHINES AND SALES SOARED I TRIED TO UTILIZE THE BRAND NAME BUT ITS EFFECT WAS BEYOND MY IMAGINATION SAYS MR INAMORI NOW HE SAYS HE'S TRYING TO UPDATE THE IMAGE THE COMPANY'S ADVERTISEMENTS HAVE RELIED HEAVILY ON NOSTALGIA CALPIS THE TASTE OF FIRST LOVE GOES ITS MOST FAMOUS SLOGAN THE COMPANY'S REASONING BOTH CALPIS AND FIRST LOVE ARE FRESH AND WHOLESOME A SPOKESMAN SAYS CALPIS WANTS TO SET A MORE AGGRESSIVE TONE IN AN UNUSUAL NEW CAMPAIGN THE CHARACTERS OF THE COMPANY'S NAME ARE EACH POSTED ON SEPARATE SIGNS IN TRAIN CARS DESPITE CALPIS'S FAILURE TO REACH ITS 1992 SALES AND PROFIT TARGET MR INAMORI SAYS HE'S OPTIMISTIC ABOUT THE COMPANY'S PROSPECTS HE PROJECTS THAT COMBINED SHIPMENTS OF CALPIS WATER AND A CARBONATED VERSION OF THE DRINK CALPIS SODA WILL HIT 40 MILLION CASES IN TWO OR THREE YEARS UP ROUGHLY 30 FROM 1992 LEVELS IN FIVE YEARS HE FORECASTS CALPIS WILL MATCH ITS RECORDHIGH PRETAX PROFIT OF 777 BILLION YEN SET IN 1971 THE COMPANY WILL RAISE SALES MR INAMORI SAYS PARTLY BY ADDING MORE VENDING MACHINES HE HOPES TO BOOST ITS PROFITABILITY TOO BY INCREASING CALPIS'S CANNING CAPACITY AT PRESENT THE COMPANY CANS ONLY ABOUT 30 OF ITS CANNED BEVERAGES ITSELF CANNING MORE OF ITS DRINKS WOULD GIVE CALPIS A GREATER SHARE OF THE PROFIT PER CAN CALPIS HAS BEGUN EXPORTING CALPIS WATER TO HAWAII GUAM HONG KONG TAIWAN AND SINGAPORE AND SAYS IT EXPECTS SALES ABROAD OF ONE MILLION CASES IN 1993 MR INAMORI SAYS HE'S SHOOTING FOR EVENTUAL OVERSEAS SALES OF 10 MILLION CASES THE COMPANY IS ALSO TRYING TO DIVERSIFY ITS MAIN NEW PRODUCT IS BLENDY A CANNED COFFEE DRINK SO FAR HOWEVER BLENDY HAS BEEN A MAJOR DISAPPOINTMENT SALES IN 1992 WERE ABOUT FIVE MILLION CASES HALF THE COMPANY'S INITIAL PROJECTION MR INAMORI SAYS SHIPMENTS WILL REACH 10 MILLION CASES IN TWO YEARS OR SO CALPIS NEEDS A NEW PRODUCT THAT IS EQUIVALENT TO CALPIS WATER SAYS KEIKO AKUTO ANALYST AT SANYO SECURITIES CO BUT IT DOESN'T HAVE ONE THAT IS SHOWING SHARP GROWTH MS AKUTO RATES THE STOCK A HOLD IT'S ALSO UNCERTAIN WHETHER CALPIS WATER WILL CATCH ON OVERSEAS WHERE CONSUMERS MAY BALK AT THE CHALKYWHITE BEVERAGE THE COMPANY IS MARKETING THE DRINK ABROAD UNDER THE NAME CALPICO SAYS A SPOKESMAN TO AVOID THE SOUND PROBLEM IN ENGLISHSPEAKING LANDS AT HOME CALPIS BLAMES SLOWING SALES OF CALPIS WATER ON JAPAN'S ECONOMIC SLUMP AND BAD SUMMER WEATHER AMONG OTHER THINGS BUT THAT HASN'T WATERED DOWN THE COMPANY'S ENTHUSIASM FOR ONE THING CALPIS WATER HAS ALREADY SPAWNED IMITATORS LACTICACID BASED BEVERAGES WILL NEVER DISAPPEAR BECAUSE THEY ARE GOOD FOR THE HEALTH SAYS ONE LONGTIME CALPIS EMPLOYEE IT IS THE SAME AS WINE AND BRANDY 9302080040 930208 BUSINESS BRIEF FUJITSU LTD ADMINISTRATIVE WORK FORCE TO BE CUT MORE THAN 20 FUJITSU LTD TOKYO PLANS TO REDUCE ITS ADMINISTRATIVE WORK FORCE MORE THAN 20 IN THE NEXT TWO YEARS MAINLY BY MOVING EMPLOYEES INTO SALES JOBS AMID A SLUMP IN BOTH ITS BUSINESS AND THE OVERALL ECONOMY A SPOKESWOMAN FOR THE JAPANESE COMPUTER MAKER SAID FRIDAY THE COMPANY WHICH HAS A TOTAL WORK FORCE OF ABOUT 52000 PLANS TO TRIM ITS 2000PERSON ADMINISTRATIVE DIVISION BY 400 TO 500 WORKERS THROUGH NATURAL ATTRITION AND SHIFTING INDIVIDUALS TO MARKETING POSITIONS DURING THE TWO YEARS STARTING IN APRIL THE SPOKESWOMAN SAID THE JAPANESE FISCAL YEAR STARTS APRIL 1 THIS IS A WAY FOR FUJITSU TO INCREASE SALES THE SPOKESWOMAN SAID ADDING THAT WE'LL TRANSFER PEOPLE WHO ARE INTERESTED IN THAT TYPE OF JOB 9302080039 930208 BUSINESS BRIEF AMERICAN MANAGEMENT SYSTEMS PREFERRED STOCK HELD BY IBM REPURCHASED FOR 14 MILLION AMERICAN MANAGEMENT SYSTEMS SAID IT BOUGHT BACK SOME OF ITS PREFERRED STOCK HELD BY INTERNATIONAL BUSINESS MACHINES CORP FOR 14 MILLION THE REPURCHASE WHICH REPRESENTS ABOUT 35 OF THE INFORMATION TECHNOLOGY COMPANY'S PREFERRED SHARES HELD BY IBM IS PART OF A MODIFIED LONGTERM WORKING AGREEMENT WITH IBM BASED IN ARLINGTON VA AMS SAID THE REPURCHASE REDUCES ITS COMMONSHARE EQUIVALENTS BY 3 AND SAVES 472500 ANNUALLY IN PREFERRED DIVIDENDS IBM BOUGHT THE PREFERRED CONVERTIBLE INTO A 10 STAKE IN AMS IN 1989 AMS CHAIRMAN CHARLES O ROSSOTTI SAID THE RELATIONSHIP WITH IBM HAS CHANGED TOWARD MORE EMPHASIS ON MARKETING WITH IBM TO MAJOR IBM AND AMS CLIENTS AND LESS EMPHASIS ON PROVIDING SOFTWARE DEVELOPMENT SERVICES TO IBM 9302080038 930208 LEISURE & ARTS TELEVISION HELEN MIRREN RETURNS AS DCI TENNISON BY DOROTHY RABINOWITZ THE LONGANTICIPATED SEQUEL TO LAST SEASON'S PRIME SUSPECT IS ABOUT TO ARRIVE ON PBS'S MYSTERY THURSDAY 910 PM WITH THE FURTHER ADVENTURES OF DETECTIVE CHIEF INSPECTOR JANE TENNISON JANE RECALL IS THE TOUGH LONDON POLICEWOMAN WHO IN PRIME SUSPECT EARNED THE RELUCTANT RESPECT OF SEXIST MALE COLLEAGUES WHEN SHE TRAPPED A BRUTAL SERIAL KILLER HAPPY AS WE ALL ARE TO SEE HER AGAIN IT'S SOON CLEAR TO FANS OF PRIME THAT SOMETHING IS SERIOUSLY WRONG WITH THE SCRIPT OF PRIME 2 AND WHAT IS WRONG IS THAT LYNDA LA PLANTE AUTHOR OF THE ORIGINAL DIDN'T WRITE THIS ONE SHE IS CREDITED WITH DEVISING THE STORY LINE FOR THE SCRIPT BY ALAN CUBITT BUT IN FACT MS LA PLANTE'S CONCEPTION OF THE TWO KEY ASPECTS OF THE PLOT WAS REJECTED BY THE PRODUCERS FOR ONE THING THE IDENTITY OF THE MURDERER IN HER ORIGINAL CONCEPTION APPARENTLY VIOLATED THE CANONS OF POLITICAL ORTHODOXY IN THE EYES OF THE PRODUCERS EVIDENTLY THIS SERIES WAS ABOUT THE EVILS OF WHITE RACISM AND NO SOCIETAL REALITY NO DRAMATIC LOGIC WAS GOING TO BE PERMITTED TO COMPLICATE MATTERS THE SAME HOLDS FOR THE IDENTITY OF THE POLICE COLLEAGUE WHO BETRAYS DCI TENNISON MS LA PLANTE HAD THE INNOCENT IDEA THAT IT SHOULD BE POSSIBLE TO PORTRAY CERTAIN REALITIES OF LIFE SUCH AS THE FACT THAT WOMEN CAN BE AS VICIOUS TO WOMEN AND AS TREACHEROUS AND COMPETITIVE AS MEN ARE SHE WAS SOON SET RIGHT ON THAT SCORE WHEN THE CREATIVE POWERS THAT BE AT GRANADA TELEVISION INSISTED THAT THE ROTTER WHO IS JANE'S CHIEF ADVERSARY BE A MALE POLICE OFFICIAL IN ENGLAND AS HERE IT'S NOT EASY TO BYPASS THE LITTLE RED BOOK OF UNWRITTEN RULES WHOSE PRIME RULE IS THAT REALITIES MAY NOT BE ALLOWED TO MUDDLE THE MESSAGE OF TV WORKS DESIGNED FOR OUR SOCIAL REEDUCATION IN THIS CASE ABOUT THE OMNIPRESENT HORRORS OF MALE SEXISM HERE AT ANY RATE IS OUR JANE AGAIN BESET AT EVERY TURN BY CONNIVING PREJUDICED DUNDERHEADED FELLOW COPS WHERE PRIME POSED A CREDIBLE AND COMPLEX UNIVERSE OF HOSTILE BUT ENTIRELY INDIVIDUAL MALE CHARACTERS APPALLED AT THE IDEA OF A WOMAN COMMANDER PRIME 2 RELIES ON THE BROADEST OF BRUSH STROKES WHITE MEN ARE THE OPPRESSORS ALL ROUND AND IN THE AFROCARIBBEAN COMMUNITY THAT IS THE SETTING FOR THE MURDER THERE ARE OF COURSE NO BAD BLACK PEOPLE JUST VICTIMS AS IS USUALLY THE CASE WITH MYSTERY THIS ONE HAS PLENTY OF ATMOSPHERE AND SHINING PERFORMANCES NOT LEAST THAT OF COLIN SALMON WHO PLAYS DCI TENNISON'S HANDSOME BLACK COLLEAGUE AND BRIEFLY LOVER AND THERE IS NEEDLESS TO SAY HELEN MIRREN FINE AS EVER THOUGH A TRIFLE WAN THIS TIME IN THE ROLE OF JANE THAT IS POSSIBLY BECAUSE THIS TIME MS MIRREN HAS BEEN CALLED ON TO LOOK SENSITIVE AND TO DELIVER A FAIR NUMBER OF RIGHTMINDED PRONOUNCEMENTS IN PRIME SUSPECT SHE WAS ALLOWED TO SHOW HER MORAL OUTRAGE AT AN OFFICIAL WHO HAD UTTERED A CALLOUS COMMENT ABOUT A MURDERED PROSTITUTE BY LETTING AN IRON DOOR SLAM HARD IN THE OFFENDER'S FACE THAT SLAM HER CLIPPED SORRY AND THE EVERSOFAINTLY AMUSED SMILE ON THE FACE OF JONES HER MALE SUBORDINATE WERE QUITE ENOUGH TO MAKE THE POINT IN PRIME JANE WAS A CHARGING BULL SO AWKWARD AND BENT ON SUCCESS SHE TRAMPLED ON THE SENSIBILITIES OF A BEREAVED FATHER AND HAD TO BE DRAGGED FROM THE ROOM BY HER MORE SENSITIVE MALE COLLEAGUE IT WAS THAT SORT OF DETAIL AND GRASP OF CHARACTER THAT DISTINGUISHED THE SERIES DCI TENNISON HAS BEEN FEMINIZED THIS TIME OUT IN A NUMBER OF WAYS THERE IS THAT ONENIGHTER WITH HER FELLOW OFFICER THAT HAS HER ALL ATWITTER AND CALLING FOR CHAMPAGNE AND MORE MAD MUSIC THIS IS A JANE QUITE UNLIKE THE TIRED AND WORKPREOCCUPIED AND VERY CREDIBLE DCI OF PRIME THIS EARLIER JANE ALLEGED TO BE IN LOVE WITH THE OAF WHO SHARED HER FLAT EVIDENTLY CONSIDERED HER LOVEMAKING A DUTY OF SORTS ONE THAT SHE UNDERTOOK WITH ROUGHLY THE SAME ENTHUSIASM WE COULD EXPECT TO FIND IN A HOUSEHOLDER SENT TO SHOVEL 10 FEET OF SNOW OFF THE DRIVEWAY THEN THERE IS THAT SWITCH FROM JANE'S HARDASNAILS CHAIN SMOKING IN PRIME TO THE CANDYSUCKING A TOUCH THAT QUITE NICELY SYMBOLIZES THE DIFFERENCE BETWEEN THE TWO SERIES PRIME 2 IS COMPARATIVELY SPEAKING CANDY OF SORTS GROSSLY PREDICTABLE IN FLAVOR AND SUBSTANCE OR MORE TO THE POINT LACK OF IT STILL IT HAS ITS ATTRACTIONS DESPITE THE WRITING WHICH HAS AND WHY NOT A SLIGHTLY DISHEARTENED AIR MS MIRREN REMAINS A COMMANDING PRESENCE HOWEVER MUCH SHE MAY HAVE BEEN SOFTENED UP AND BEEN REQUIRED TO HOLD THE HAND OF A DYING SUSPECT LOOKING AS THOUGH SHE MEANT IT SPEAKING OF COMMANDING PRESENCES NBC WILL AIR ITS DOCUMENTARY ON THE LIFE AND CAREER OF MIKE TYSON ON FRIDAY 911 PM AND IT IS SOMETHING TO SEE WHAT CAN BE MORE EXHILARATING THAN A TALE OF PURE AMBITION PROPERLY TOLD FALLEN CHAMP THE UNTOLD STORY OF MIKE TYSON IS JUST THAT NEEDLESS TO SAY THIS TALE IS ABOUT A LOT OF OTHER THINGS AS WELL INCLUDING THE INFLUENCES THAT FINALLY HELPED UNDO HIM TWO ROADS DIVERGED IN THE FIGHTER'S LIFE AND HE TOOK THE ONE MOST TRAVELED BY IN THE END TYSON SURROUNDED HIMSELF WITH SYCOPHANTS AND VARIOUS OTHER SEAMY SPECIMENS ALL OF WHOM RUSHED TO DEFEND HIM AND ATTACK HIS ACCUSER WHEN HE WAS CHARGED WITH RAPING DESIREE WASHINGTON IN THE MEMORABLE LAST QUARTER OF THIS DOCUMENTARY WE SEE AMONG OTHER STARS THE REV LOUIS FARRAKHAN MINCING AND SNICKERING ABOUT THE PODIUM AS HE DENOUNCES MS WASHINGTON AND WOMEN IN GENERAL HOW MANY TIMES SISTERS THUNDERS THIS APOSTLE OF VIRTUE HAVE YOU SAID NO AND YOU MEAN YES ALL THE TIME YOU'RE NOT TALKING ABOUT A MAN THAT DON'T KNOW YOU AND THE DAMNED DECEITFUL GAMES YOU PLAY THE HEAD OF THE NATIONAL BAPTIST CONVENTION IS ALSO IN HERE PITCHING AS IS ALAN DERSHOWITZ WHO BLAMES ATHLETE GROUPIES FOR TYSON'S TROUBLES BUT ALL THIS IS A VERY FAR CRY FROM THE FILM'S BEGINNINGS AND INDEED FROM MOST OF THE REST OF THIS ENTIRELY RIVETING BIOGRAPHY BY BARBARA KOPPLE DIRTY MIKE BOY OF THE STREETS GOES TO REFORM SCHOOL ASKS TO LEARN HOW TO FIGHT HE ENDS UP WITH A ROOM IN THE HOUSE OF ONE OF THE WORLD'S GREAT BOXING TRAINERS A CLEAN WELLLIGHTED PLACE AND KIND GUARDIANS IT IS A STORY OUT OF DICKENS TILL IT BECOMES A CHRONICLE OF A REMARKABLE FIGHTING CAREER THE PRODUCERS SEEM TO HAVE ASSEMBLED EVERY PIECE OF FOOTAGE EVER SHOT OF THE FIGHTER AND EVERY INTERESTING THING EVER SAID ABOUT HIM 9302080037 930208 COMPUTERS AKERS MOVES TO SPEED SPLIT OF IBM UNITS BY LAURENCE HOOPER AND MICHAEL W MILLER STAFF REPORTERS OF THE WALL STREET JOURNAL WHILE INTERNATIONAL BUSINESS MACHINES CORP SEARCHES FOR A NEW BOSS ITS DEPARTING CHIEF JOHN F AKERS IS SPEEDING UP PLANS TO SPLIT OFF IBM'S PERSONAL COMPUTER AND DISKDRIVE BUSINESSES MR AKERS RECENTLY TOLD IBM'S TOP MANAGERS HE HAS HIRED MORGAN STANLEY & CO AND THE BOSTON CONSULTING GROUP TO HELP THE CRIPPLED COMPUTER GIANT GO FURTHER IN BREAKING ITSELF UP HE SINGLED OUT THE BIG PC AND DISKDRIVE UNITS AS THE FIRST CANDIDATES FOR CHANGES WHICH COULD INVOLVE OUTSIDE INVESTORS OR SPECIAL NEW SECURITIES IN THE PAST YEAR MR AKERS HAS BEGUN TAKING STEPS TOWARD BREAKING IBM INTO A DOZEN INCREASINGLY AUTONOMOUS UNITS BUT THE BABY BLUES ARE STILL CLOSELY LINKED TO EACH OTHER AND IBM'S ARMONK NY HEADQUARTERS MR AKERS'S LATEST MOVES COME AT AN AWKWARD LAMEDUCK PERIOD FOR THE CEO IBM HAS SAID IT WANTS TO REPLACE MR AKERS WITHIN THREE MONTHS BUT MEANWHILE THE COMPANY IS MIRED IN ITS DEEPEST CRISIS EVER LAST MONTH MR AKERS CANCELED AN IMPORTANT TWODAY SUMMIT MEETING FOR IBM'S TOP TWO DOZEN EXECUTIVES THAT HAD BEEN SCHEDULED TO START TODAY IN DUTCHESS COUNTY NY IBM NORMALLY HOLDS SUCH SESSIONS ONCE OR TWICE A YEAR TO PLAN LONGTERM STRATEGY BUT ON OTHER FRONTS MR AKERS IS ALSO PUSHING AGGRESSIVELY WITH BIG PROJECTS FOR IBM BESIDES THE BREAKUP WORK IBM WILL UNVEIL TOMORROW A MAJOR STRATEGY FOR ITS BESEIGED MAINFRAMECOMPUTER BUSINESS WE OBVIOUSLY CANNOT JUST STOP WHILE WE'RE LOOKING FOR A NEW CEO IN FACT THAT'S EXACTLY WHAT WE CAN'T DO AN IBM SPOKESMAN SAYS A KEY ISSUE FOR MORGAN STANLEY AND BOSTON CONSULTING GROUP WILL BE THE FEDERAL REGULATIONS THAT REQUIRE SUBSIDIARIES TO HAVE THREE YEARS OF AUDITED RESULTS BEFORE ANY PUBLIC OFFERING IBM DIDN'T START KEEPING SEPARATE BOOKS FOR MOST BABY BLUES UNTIL THIS YEAR BUT IT WANTS MORGAN STANLEY TO FIGURE OUT IF THERE'S ANY WAY TO SPEED UP AN OFFERING POSSIBLY BY RECONSTRUCTING FINANCIAL RESULTS FROM PAST YEARS IBM OFFICIALS HAVE SAID ONE APPROACH THEY FAVOR IS TO KEEP FULL OWNERSHIP OF ITS UNITS BUT OFFER SPECIAL STOCKS PEGGED TO THEIR INDIVIDUAL RESULTS THEY POINT TO THE SIMILAR MOVE BY GENERAL MOTORS CORP WITH ITS HUGHES AND ELECTRONIC DATA SYSTEMS UNITS THE PC AND DISKDRIVE OPERATIONS ARE ALREADY A BIT FURTHER ALONG IN BECOMING AUTONOMOUS IBM LAST YEAR GAVE THE PC BUSINESS MORE CONTROL OVER THE PC SALES FORCE AND DUBBED IT AN INDEPENDENT UNIT THE DISKDRIVE BUSINESS NOW CHRISTENED ADSTAR STARTED COMPILING ITS OWN FINANCIAL RESULTS LAST YEAR BEFORE ANY OTHER BABY BLUE BOTH MORGAN STANLEY AND BOSTON CONSULTING GROUP WILL BE REPORTING TO PAUL RIZZO A NEW SIGN OF THE POWERFUL ROLE THE RETIRED IBM EXECUTIVE IS PLAYING IN DEALING WITH THE IBM CRISIS MR RIZZO UNEXPECTEDLY RESURFACED AT IBM IN DECEMBER AS A CONSULTANT WHEN IBM CLEARED ASIDE MR AKERS AND HIS TWO TOP LIEUTENANTS LAST MONTH IT MADE MR RIZZO VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER MR AKERS TOLD IBM EXECUTIVES IN HIS MEMO THAT THE BOSTON CONSULTANTS WILL WORK ON THE FUNCTIONAL AND OPERATING COMPETITIVENESS OF OUR BUSINESSES TEAMS FROM MORGAN STANLEY AND THE BOSTON GROUP HAVE ALREADY STARTED COMBING THROUGH IBM'S FINANCES AND MANAGEMENT CHARTS AND ARE EXPECTED TO COMPLETE PRELIMINARY WORK OVER THE NEXT 30 TO 60 DAYS MEANWHILE TOMORROW'S NEWPRODUCT ANNOUNCEMENT WILL AMOUNT TO A DOORDIE PRESENTATION FOR IBM'S MAINFRAME CHIEF NICK DONOFRIO CONSULTANTS SAY MR DONOFRIO MUST LAY OUT A CONVINCING PICTURE OF IBM'S FUTURE IN LARGE SYSTEMS AND GIVE CUSTOMERS PLENTY OF REASONS NOT TO DEFECT TO NEW CHEAPER ALTERNATIVES ONE RADICAL STEP MR DONOFRIO IS EXPECTED TO TAKE IS ABOLISHING IBM'S PRICE LIST FOR NEW MAINFRAMES A LONGRUNNING PRICE WAR HAS FORCED IBM AND ITS LARGESYSTEMS RIVALS TO OFFER STEEP DISCOUNTS OFTEN AS MUCH AS 50 TO CLOSE A MAINFRAME SALE THESE CUTS ARE NOW SO WIDESPREAD THAT MOST SALES CALLS ESCALATE INTO A COSTLY AND TIMECONSUMING BATTLE INVOLVING IBM COMPETITORS SUCH AS AMDAHL CORP AND HITACHI DATA SYSTEMS AND THE DISCOUNTHUNGRY CUSTOMER IBM APPARENTLY WILL TRY TO DEFUSE THE PRICESLASHING ATMOSPHERE BY OFFERING EACH CUSTOMER A UNIQUE BID THAT COULD INCLUDE SOFTWARE AND SERVICE AS WELL AS HARDWARE AN APPROACH THAT WAS PILOTED IN IBM'S BRITISH SUBSIDIARY IT ISN'T CLEAR WHETHER THE NEW TACTIC WHICH DOESN'T ALLOW BUYERS EASILY TO COMPARE THEIR DEAL WITH ANYONE ELSE'S WILL IMPROVE IBM'S SAGGING MAINFRAME SALES AND PROFITS BUT IF CUSTOMERS COTTON TO THE LET'S MAKE A DEAL APPROACH IT COULD BECOME A STANDARD STRATEGY FOR IBM'S RIVALS TOO TOMORROW'S ANNOUNCEMENT WILL ALSO INCLUDE THE INTRODUCTION OF TWO TOPOFTHELINE MAINFRAMES ONE MODEL THAT LINKS SEVEN CENTRAL PROCESSORS AND ONE WITH EIGHT IBM'S PREVIOUS TOP MODEL HAD SIX PROCESSORS IN ADDITION THE COMPANY WILL IMPROVE THE PERFORMANCE OF EACH MAINFRAME PROCESSOR BOOSTING COMPUTING POWER ACROSS ITS ENTIRE MAINFRAME LINE IBM ALSO WILL UNVEIL AN IMPORTANT TECHNOLOGY FOR COMPRESSING DATA IN MAINFRAMES AN EXAMPLE OF THE MOUNTING COMPETITION AMONG THE BABY BLUES IBM WILL LIKELY TOUT THE NEW DATACOMPRESSION FEATURE AS A WAY TO SAVE MONEY ON DISK DRIVES THAT COULD EAT INTO IBM'S OWN DISKDRIVE SALES ALONG WITH RIVALS' SALES BUT IBM IS BETTING THE FEATURE WILL BE A STRONG SELLING POINT AGAINST MAINFRAME COMPETITORS AMDAHL AND HITACHI DATA SYSTEMS A UNIT OF HITACHI LTD THE NEW TECHNOLOGY USES HARDWARE CIRCUITS RATHER THAN THE SOFTWARE TECHNIQUES USED TO COMPRESS DATA IN PCS MR DONOFRIO IS ALSO EXPECTED TO GIVE SOME DETAILS OF HIS PREVIOUSLY REPORTED PLANS TO INCREASE IBM'S FOCUS ON PARALLEL PROCESSING WHICH USES MANY MICROPROCESSORS TO WORK IN CONCERT ON BIG COMPUTING PROBLEMS HE ALSO MAY PROVIDE AN EARLY INDICATION OF IBM'S 1993 MAINFRAME SALES A SUBJECT OF MAJOR CONCERN BECAUSE THE SECTOR'S REVENUE SLID AN UNEXPECTED 12 LAST YEAR SEPARATELY A BIG SHAREHOLDER GROUP SAID IT'S CALLING OFF ITS PROXY FIGHT AT IBM IN THE WAKE OF LAST MONTH'S MANAGEMENT BLOODLETTING THE GROUP UNITED SHAREHOLDERS ASSOCIATION HAD BEEN PUSHING FOR IBM'S BOARD TO ASSERT ITSELF AGAINST MR AKERS 9302080036 930208 BUSINESS BRIEF SIERRA ONLINE INC MAKER OF COMPUTER GAMES POSTS LOSS FOR ITS 3RD PERIOD SIERRA ONLINE INC SADDLED WITH SLUGGISH SALES AND EXPENSES FOR DEVELOPING AND PROMOTING NEW COMPUTER GAMES POSTED A NET LOSS FOR THE FISCAL THIRD QUARTER OF 13 MILLION OR 18 CENTS A SHARE THAT COMPARES WITH NET INCOME OF 26 MILLION OR 45 CENTS A SHARE A YEAR EARLIER THE OAKHURST CALIF MAKER OF INTERACTIVE COMPUTER GAMES SAID THE LOSS WAS IN LINE WITH ITS PREVIOUSLY ANNOUNCED EXPECTATION THAT IT WOULD POST A NET LOSS OF 10 CENTS TO 20 CENTS A SHARE REVENUE FOR THE PERIOD ENDED DEC 31 INCREASED 12 TO 183 MILLION FROM 163 MILLION FOR THE NINEMONTH PERIOD THE COMPANY POSTED A 22 MILLION LOSS OR 30 CENTS A SHARE COMPARED WITH NET INCOME OF 34 MILLION OR 60 CENTS A SHARE REVENUE GREW 13 TO 378 MILLION FROM 333 MILLION SIERRA STOCK CLOSED DOWN 175 AT 1350 IN NATIONAL OVERTHECOUNTER TRADING 9302080035 930208 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 7/8 HIGH 2 5/8 LOW 2 3/4 NEAR CLOSING BID 2 13/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 59 DAYS 308 60 TO 89 DAYS 310 90 TO 149 DAYS 313 150 TO 179 DAYS 317 180 TO 239 DAYS 320 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 315 30 DAYS 316 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 267 ONE MONTH 272 TWO MONTHS 275 THREE MONTHS 283 SIX MONTHS 303 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 308 ONE MONTH 312 THREE MONTHS 323 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 303 60 DAYS 305 90 DAYS 307 120 DAYS 313 150 DAYS 316 180 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 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 9 JAPAN 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 743 60 DAYS 751 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 743 60 DAYS 752 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 9302080034 930208 PEPPERAND SALT COLD WEATHER MAKES ME ACHY IT'S OBVIOUS THEY'RE FLAKY THIS IS MEDICAL LORE KEEPING QUIET RAISES MINE EVEN MORE 9302080033 930208 BUSINESS BRIEF ISUZU MOTORS LTD TRUCKMANUFACTURING FIRM IS SET TO BE FORMED IN CHINA ISUZU MOTORS LTD OF JAPAN ANNOUNCED IN TOKYO THAT IT WILL SET UP A TRUCKMANUFACTURING COMPANY IN CHINA JOINTLY WITH A LOCAL CONCERN AND A JAPANESE TRADING HOUSE THE JOINT VENTURE JIANGLINGISUZU MOTORS CO WILL OPEN IN NANCHANG IN JIANGXI PROVINCE IN MARCH WITH A CAPITALIZATION OF 20 MILLION THE NEW COMPANY WILL TAKE OVER PART OF THE PRODUCTION FACILITIES AND THE EMPLOYEES OF A LOCAL LIGHTTRUCK COMPANY JIANGXI AUTOMOBILE FACTORY JIANGXI AUTOMOBILE FACTORY WILL HOLD 75 OF THE NEW COMPANY WHILE ISUZU AND TRADING HOUSE ITOCHU CORP WILL OWN 125 EACH PRODUCTION IS PROJECTED AT 25000 UNITS FOR 1993 AND IS EXPECTED TO INCREASE TO 50000 IN 1997 ISUZU PRODUCED A TOTAL 23000 TRUCKS IN 1992 AT ITS FOUR PRODUCTION BASES IN CHINA 9302080032 930208 TECHNOLOGY & MEDICINE FIRM DEVELOPS SUPERCONDUCTOR CHIPS FOR PCS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL SUNNYVALE CALIF CONDUCTUS INC SAID IT DEVELOPED A SUPERCONDUCTING DATASTORAGE CIRCUIT THAT WORKS AT LEAST 10 TIMES FASTER THAN THE SPEEDIEST SILICON CHIPS NOW USED IN COMPUTERS THE 32BIT MEMORY CHIP WHILE A RELATIVELY SIMPLE DEVICE REPRESENTS AN IMPORTANT MILESTONE IN EFFORTS TO DEVELOP ULTRAFAST ELECTRONICS BASED ON SUPERCONDUCTORS IT SUGGESTS SUPERCONDUCTING COMPONENTS MAY BE IN COMMERCIAL USE IN DIGITAL COMMUNICATIONS AND SPECIALIZED ELECTRONIC DEVICES WITHIN A FEW YEARS IT ALSO INDICATES THAT SOMETIME AFTER THAT IT IS ENTIRELY POSSIBLE GENERALPURPOSE SUPERCONDUCTING INTEGRATED CIRCUIT CHIPS WILL BE DEVELOPED THAT WOULD BE COMMERCIALLY VIABLE SAID JULIA PHILLIPS MANAGER OF A RESEARCH TEAM AT AT&T BELL LABORATORIES THAT COLLABORATED WITH CONDUCTUS IN DEVELOPING THE MEMORY CHIP SANDIA NATIONAL LABORATORIES ALBUQUERQUE NM ALSO COLLABORATED IN THE WORK CONDUCTUS SAID CONDUCTUS PARTLY FUNDED BY HEWLETTPACKARD CO IS ONE OF SEVERAL COMPANIES RACING TO DEVELOP SUPERCONDUCTING ELECTRONICS BASED ON HIGHTEMPERATURE SUPERCONDUCTORS THE MATERIALS DISCOVERED IN THE LATE 1980S CONDUCT ELECTRICITY WITHOUT RESISTANCE REPEL MAGNETIC FIELDS AND DO OTHER PECULIAR THINGS WHEN COOLED WITH LIQUID NITROGEN A CHEAP READILY AVAILABLE REFRIGERANT THE COMPANY SAID ITS NEW SUPERCONDUCTING SHIFT REGISTER IS THE MOST COMPLEX DIGITAL CIRCUIT DEMONSTRATED WITH HIGHTEMPERATURE SUPERCONDUCTORS A SHIFT REGISTER IS A SIMPLE MEMORY DEVICE THAT RECORDS AND RETRIEVES DATA BITS VERY FAST IN A SEQUENTIAL WAY SUCH MEMORY DEVICES MADE WITH SILICON ARE WIDELY USED IN COMMUNICATIONS EQUIPMENT AND COMPUTERS A DIFFERENT KIND OF CIRCUIT CALLED RANDOMACCESS MEMORY OR RAM IS USED FOR LARGESCALE DATA STORAGE IN MOST COMPUTERS IN TESTS THE SUPERCONDUCTING CHIP'S INTERNAL CLOCK WHICH GOVERNS HOW FAST DATA BITS CAN BE MOVED IN AND OUT OPERATED AT 120 BILLION CYCLES A SECOND CONDUCTUS SAID THAT'S TWO THOUSAND TO THREE THOUSAND TIMES FASTER THAN THE CLOCKS IN TODAY'S TOPOFTHELINE PERSONAL COMPUTERS THE COMPANY SAID IT'S PROBABLY 10 TO 50 TIMES FASTER THAN ANY CIRCUIT THAT'S BEEN BUILT TO DATE WITH SILICON THE MATERIAL OF CHOICE FOR COMPUTER CHIPS ADDED RANDY SIMON CONDUCTUS'S VICE PRESIDENT MARKETING AND DEVELOPMENT WHILE CONDUCTUS'S CHIP REPRESENTS A MAJOR STEP FORWARD IN SUPERCONDUCTING ELECTRONICS SUPERCONDUCTORS AREN'T LIKELY TO REPLACE SILICON ANYTIME SOON IN COMPUTERS SAID DAVID LANG A BELL LABORATORIES SEMICONDUCTOR RESEARCH MANAGER RESEARCHERS STILL FACE HURDLES IN DEVELOPING WAYS TO MASSPRODUCE PERFECTLY UNIFORM SUPERCONDUCTOR FILMS FOR USE IN MAKING CHIPS HE SAID MOREOVER SILICON CHIPS THEMSELVES ARE GETTING SMALLER AND FASTER AND AREN'T EXPECTED TO TOP OUT IN PERFORMANCE UNTIL AFTER 2000 9302080031 930208 BUSINESS BRIEF KYOCERA CORP FIRM MAY MAKE INVESTMENT TO BOOST OUTPUT CAPACITY KYOCERA CORP MAY INVEST THIS YEAR TO BOOST PRODUCTION CAPACITY FOR CERAMIC SEMICONDUCTOR PACKAGING IF THE US COMPUTER MARKET REMAINS STRONG AN OFFICIAL OF THE TOKYO CONCERN SAID HISAO HISAKI SALES DIRECTOR FOR THE SEMICONDUCTOR COMPONENTS GROUP SAID US DEMAND FOR CERAMIC PACKAGING FOR ADVANCED SEMICONDUCTORS SUCH AS MICROPROCESSORS IS LIKELY TO GROW FROM 10 TO 25 IN THE NEXT FISCAL YEAR MR HISAKI SAID KYOCERA'S SAN DIEGO PRODUCTION FACILITIES SUPPLY ABOUT 25 OF ITS SALES OF CERAMIC PACKAGINGS TO US FIRMS WORLDWIDE WHILE DOMESTIC FACTORIES SUPPLY THE REST IF THE GROWTH OF US DEMAND IS CLOSER TO 25 IN THE YEAR BEGINNING APRIL 1 TOKYOBASED KYOCERA WILL INVEST IN MORE JAPANESE FACILITIES HISAKI SAID US DEMAND FOR CERAMIC PIN GRID ARRAYS USED FOR ADVANCED CHIPS SUCH AS INTEL CORP'S 486SERIES MICROPROCESSORS ACCOUNT FOR ROUGHLY 2530 OF KYOCERA'S CERAMIC PACKAGING SALES FOR THE FISCAL YEAR ENDED MARCH 1992 CERAMIC PACKAGING ACCOUNTED FOR ROUGHLY 23 OF THE COMPANY'S OVERALL SALES 9302080030 930208 MANAGER'S JOURNAL CEO KEY TO BOARDROOM REFORM BY JOHN F BUDD JR SHAREHOLDER ACTIVISTS ACTING LIKE DALLAS COWBOYS FANS AS THEY CELEBRATE THE CORPORATE HEADS THEY HAVE ROLLED WOULD DO WELL TO RECALL WILLIAM FAULKNER'S WORDS VICTORY IS AN ILLUSION OF PHILOSOPHERS AND FOOLS CAN DALE HANSON CEO OF THE 72 BILLION CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM CALPERS OR RALPH WHITWORTH PRESIDENT OF THE 65000MEMBER UNITED SHAREHOLDERS ASSOCIATION TWO LEADING SHAREHOLDERS' RIGHTS ADVOCATES GUARANTEE THAT THE NEXT BATCH OF CEOS WILL BE MORE SUCCESSFUL THAN THOSE THEY UNSEATED THESE ACTIVISTS CONTEND THAT THEY HAVE FORCED DIRECTORS TO STIFFEN THEIR BACKBONES AND MOVE IN ON INEFFECTIVE CHIEF EXECUTIVES ABETTED IN LARGE MEASURE BY MEDIA LEVERAGE BUT THE DIRECTORS ARE STILL IN PLACE WHERE IS THE SHIFT IN POWER SO LOUDLY PROCLAIMED WHO NOW IS TO JUDGE THE APPROPRIATENESS OF STRATEGIC PROGRAMS AN EXTRAORDINARILY COMPLEX MATTER WHO BEST HAS THE FACTS AND BACKGROUND TO MAKE THESE JUDGMENTS CERTAINLY NOT THE SHAREHOLDERS IN FACT WHILE MR HANSON HAS BEEN HECTORING CEOS CALPERS'S OWN FINANCIAL PERFORMANCE HAS SLIPPED ENOUGH TO WORRY MR HANSON'S DIRECTORS OF COURSE SOME BOARDS NEED TO BE REMINDED OF THEIR RESPONSIBILITIES TO PROTECT THE INTERESTS INVESTMENT OF ALL SHAREHOLDERS EVEN IF IT OCCASIONALLY MEANS CHANGING THE LEADERSHIP THERE IS NOTHING INHERENTLY WRONG WITH THE ACTIVISTS' OBJECTIVES IN THIS REGARD WHAT'S WRONG IS THE MICROMANAGING SOLUTIONS OFFERED TO ACHIEVE THIS END AND THE BELLICOSE TACTICS EMPLOYED BY THE LARGER SHAREHOLDERS IT IS ONE THING TO PRESSURE DIRECTORS TO PAY MORE HEED TO THEIR ROLES BUT IT IS ANOTHER TO CREATE A POLICESTATE MENTALITY IN THE BOARDROOM UNLESS THERE IS A CONSTRUCTIVE POSITIVE RELATIONSHIP AND THIS DOES NOT MEAN TOADYING THE INTERESTS OF ALL SHAREHOLDERS WILL NOT BE SERVED ONE ACTIVIST TACTIC THAT IS PARTICULARLY HARMFUL IS ENDRUNNING THE CEO TO COMMUNICATE TO SHAREHOLDERS CALPERS'S MANAGERS RECENTLY WENT OVER THE HEADS OF THE CEOS OF SEVEN MAJOR CORPORATIONS TO VOICE COMPLAINTS ABOUT CORPORATE STRATEGY DIRECTLY WITH OUTSIDE DIRECTORS ACCORDING TO MR HANSON WE TRIED A KINDER GENTLER APPROACH BUT WE CONCLUDED THAT WASN'T WORKING MR HANSON TOLD THIS NEWSPAPER ON JAN 22 DAVID GREGORY A SOCIAL ANTHROPOLOGIST KNOWN FOR HIS STUDIES OF ORGANIZATIONAL DYNAMICS MAKES A CLEAR DISTINCTION BETWEEN A BOARD'S RESPONSIBILITY AND THAT OF MANAGEMENT A BOARD'S ROLE IS MORE CONCEPTUAL THAN TACTICAL MORE QUALITATIVE THAN QUANTITATIVE IF LASTING CHANGE IS TO BE MADE THE CEO MUST INITIATE IT THE BOARD MUST UNDERSTAND AND SHARE THE CEO'S VISION AND THE NUANCES OF HIS STRATEGIC PLANS BUT THIS REQUIRES AN ATMOSPHERE HOSPITABLE TO FRANKNESS AND COOPERATION THIS CAME ACROSS CLEARLY IN CONVERSATIONS WITH A GROUP OF FORMER CHAIRMEN AND CEOS WHO BELONG TO THE 13MEMBER CHIEF EXECUTIVES' COUNCIL THESE MEN HAVE NO EGOS TO PROTECT NO TURF TO DEFEND OR SELFINTEREST TO ADVANCE THEY SAY THAT CORPORATE SOCIALISM THEIR CHARACTERIZATION OF THE KIND OF GOVERNANCE REFORM RECENTLY ADVANCED WILL NOT WORK IN THE CORPORATE ENVIRONMENT IN THEIR OPINION THE HEADLINED FAILURES OF SOME CEOS TO WORK CONSTRUCTIVELY WITH THEIR BOARDS OBSCURE THE SOLID WORK OF MOST BOARDS IN SUPPORTING THE CEO AND ENSURING THE GROWTH OF THE COMPANY THE BIGGEST MISTAKE A CEO CAN MAKE IS TO DENY HIMSELF THE COUNSEL REPRESENTED IN ALMOST ANY BOARD ALL SEVEN OF THE FORMER EXECUTIVES WE TALKED TO LOOKED AT THEIR BOARDS AS UNPARALLELED RESOURCES OF EXPERIENCE AND WISDOM THEY WERE DETERMINED TO MINE THESE TREASURE TROVES AND THEY DID LIKEWISE A CEO MUST SHARE HIS VIEWS AND HIS VISION WITH HIS BOARD MEMBERS SO THEY KNOW WHERE HE IS COMING FROM HE MUST ALSO REVEAL THEM CLEARLY TO THE SHAREHOLDERS THIS DOES NOT MEAN POMPOUS MISSION STATEMENTS BUT HONEST INTROSPECTIVE DIALOGUE MOST INSTITUTIONAL INVESTORS ARE BY THE HUGE SIZE OF THEIR INDIVIDUAL CORPORATE HOLDINGS LOCKED IN FOR THE LONG TERM THEY CAN RARELY SELL WITHOUT INCURRING SOME LOSSES WHETHER THEY REALIZE IT OR NOT THEY MUST MAKE JUDGMENTS ABOUT MANAGEMENT BASED NOT ON HARD NUMBERS BUT ON SUBJECTIVE QUALITATIVE REASONING THEY SHOULD NOT SO MUCH FOCUS ON STRATEGIC MANAGEMENT OF THE FIRM BUT MAKE THEIR JUDGMENTS BASED ON ABSTRACT VALUES AND PERCEPTIONS HAS THE CEO GOT A COHERENT GAME PLAN IS IT CREDIBLE IS HE CREDIBLE IMMEDIATE RESULTS ASIDE DOES HE SEEM IN CHARGE CAN WE HAVE CONFIDENCE IN HIM IF THIS VISION OF THE CORPORATION LOSES OUT TO HYPERACTIVE SHAREHOLDERS THREE AFTEREFFECTS ARE POSSIBLE DIRECTORS AND THEIR CHIEF EXECUTIVES GET THE MESSAGE AND SHAPE UP OR THEY BECOME SO GUNSHY THAT RISKTAKING THE HEARTBEAT OF ENTREPRENEURISM GIVES WAY TO THE INERTIA OF CONSERVATISM OR EVEN WORSE TO CONTEMPLATE BOARDS ARE MANDATED TO SUBMIT STRATEGIC PLANS DIVERSIFICATION OR ACQUISITION PLANS RESEARCH INVESTMENTS ETC TO SHAREHOLDER REFERENDUMS I THINK MAXIMUM VALUE FOR NOW HAS BEEN GAINED FROM THE INTENSE CRITICISMS OF BOTH BOARDS AND CEOS THE POINT HAS BEEN MADE STRONGLY BUT TO CONTINUE THE BATTLE AND CALPERS HAS 12 MORE COMPANIES TARGETED WILL CREATE PYRRHIC VICTORIES WORKERS WILL BECOME DEMORALIZED AND CONSUMERS FRIGHTENED MIDDLE MANAGEMENT WILL LOSE FAITH AND MOTIVATION AND DISENCHANTED SHAREHOLDERS WILL WITHHOLD THEIR INVESTMENT DOLLARS THE STATUS QUO IS DEAD GIVE PEACE A CHANCE MR BUDD IS CHAIRMAN AND CHIEF EXECUTIVE OF OMEGA GROUP AS A CORPORATE OFFICER HE PARTICIPATED IN TWO INTERNALLY GENERATED RESTRUCTURINGS 9302080029 930208 CORRECTIONS & AMPLIFICATIONS NEW YORK STOCK EXCHANGE COMPOSITE LISTINGS IN FRIDAY'S EDITIONS WERE 4 PM PRICES NOT FINAL OR 5 PM QUOTES FIDELITY INVESTMENTS SAID THAT AT ANNUAL MEETINGS THIS SPRING IT PLANS TO VOTE AGAINST SLATES OF DIRECTORS RECOMMENDED BY MANAGEMENT IF A COMPANY HAS LOWERED THE EXERCISE PRICE ON EXECUTIVE STOCK OPTIONS TO PUT IT WITHIN THE CURRENT RANGE OF THE COMPANY'S STOCK PRICE IN OTHER CASES WHERE IT DISAGREES WITH STOCKRELATED COMPENSATION PLANS FIDELITY SAID IT WILL VOTE AGAINST THE PLAN BUT NOT THE DIRECTORS AS WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY ROBERT HATCHER IS A CORPORATE TRADER AT BARCLAYS BANK PLC IN NEW YORK IN FRIDAY'S FOREIGN EXCHANGE COLUMN MR HATCHER WAS INCORRECTLY IDENTIFIED AS WORKING FOR STANDARD CHARTERED BANK PLC 9302080028 930208 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT CAROLINA POWER & LIGHT CO 150 MILLION OF FIRST MORTGAGE BONDS VIA COMPETITIVE BID BIOCIRCUITS CORP 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC BOCA RESEARCH INC INITIAL 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST CABLEVISION SYSTEMS CORP 150 MILLION OF SENIOR SUBORDINATED DEBENTURES VIA MERRILL LYNCH & CO CARR REALTY CORP INITIAL 6250000 COMMON SHARES VIA MERRILL LYNCH CATALYTICA INC INITIAL THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS INC CATO CORP 1750000 CLASS A COMMON SHARES VIA ROBINSONHUMPHREY CO CELLPRO INC 25 MILLION COMMON SHARES VIA PAINEWEBBER INC CONE MILLS CORP SECONDARY OFFERING OF FIVE MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC CRYOLIFE INC INITIAL 15 MILLION COMMON SHARES VIA ROBINSONHUMPHREY CYBERONICS INC INITIAL TWO MILLION COMMON SHARES VIA MORGAN STANLEY & CO DR PEPPER BOTTLING HOLDINGS INC 125 MILLION FACE VALUE OF SENIOR DISCOUNT NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP DR PEPPER BOTTLING CO OF TEXAS 125 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE ELECTRONICS FOR IMAGING INC 25 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO FLEET FINANCIAL GROUP INC 10 MILLION COMMON SHARES VIA MERRILL LYNCH GLOBAL INDUSTRIES LTD INITIAL 25 MILLION COMMON SHARES VIA SALOMON BROTHERS INC HF AHMANSON & CO 150 MILLION OF CUMULATIVE DEPOSITARY PERPETUAL PREFERRED STOCK VIA MERRILL LYNCH HILO AUTOMOTIVE INC THREE MILLION COMMON SHARES VIA DILLON READ & CO IMMULOGIC PHARMACEUTICAL CORP 25 MILLION COMMON SHARE VIA MORGAN STANLEY LEVIATHAN GAS PIPELINE PARTNERS LP INITIAL 5250000 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE MERRY LAND & INVESTMENT CO 45 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC MOLECULAR DYNAMICS INC INITIAL 2132374 COMMON SHARES VIA HAMBRECHT & QUIST NEUREX CORP INITIAL THREE MILLION CLASS A COMMON SHARES VIA LEHMAN BROTHERS OCLASSEN PHARMACEUTICALS INC INITIAL THREE MILLION COMMON SHARES VIA LEHMAN BROTHERS PROCYTE CORP TWO MILLION COMMON SHARES VIA WILLIAM BLAIR & CO PROFFITT'S INC 2250000 COMMON SHARES VIA FIRST BOSTON CORP PROPERTY TRUST OF AMERICA 55 MILLION SHARES OF BENEFICIAL INTEREST VIA GOLDMAN SACHS & CO RIBI IMMUNOCHEM RESEARCH INC THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST SERAGEN INC 25 MILLION COMMON SHARES VIA GOLDMAN SACHS SERVICE MERCHANDISE CO 250 MILLION OF SENIOR SUBORDINATED DEBENTURES VIA MERRILL LYNCH SERVICEMASTER CORP THREE MILLION NONVOTING SHARES VIA MERRILL LYNCH SEQUENT COMPUTER SYSTEMS INC 4309881 COMMON SHARES VIA GOLDMAN SACHS STEWART ENTERPRISES INC 21 MILLION CLASS A COMMON SHARES VIA BEAR STEARNS & CO TECH DATA CORP 25 MILLION COMMON SHARES VIA ROBINSONHUMPHREY TRIPLEX PHARMACEUTICALS CORP INITIAL THREE MILLION COMMON SHARES VIA FIRST BOSTON UTILICORP UNITED INC FOUR MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO VICAL INC INITIAL THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST FLORIDA STATE BOARD OF EDUCATION 250 MILLION OF 1992 SERIES C PUBLIC EDUCATION CAPITAL OUTLAY GENERAL OBLIGATION BONDS VIA COMPETITIVE BID NORFOLK VA 1013 MILLION CAPITAL IMPROVEMENT AND REFUNDING UNLIMITEDTAX BONDS VIA COMPETITIVE BID RIVERSIDE CALIF 50 MILLION SERIES 1993 WATER AND SEWER REFUNDING REVENUE BONDS VIA COMPETITIVE BID UNIVERSITY OF NORTH CAROLINA BOARD OF GOVERNORS ABOUT 116 MILLION SERIES 1993 UTILITIES SYSTEM REFUNDING REVENUE BONDS UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL VIA COMPETITIVE BID CHICAGO PARK DISTRICT ILL 145 MILLION CAPITAL IMPROVEMENT AND REFUNDING GENERAL OBLIGATION BONDS VIA A BEAR STEARNS GROUP CONNECTICUT 250 MILLION GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP LOUISIANA 6049 MILLION GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP INCLUDES 4799 MILLION SERIES 1993A REFUNDING BONDS AND 125 MILLION SERIES 1993B NEWMONEY BONDS WHICH ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP MASSACHUSETTS HOUSING FINANCE AGENCY 638 MILLION 1993 SERIES AD HOUSING PROJECT REVENUE BONDS VIA A GOLDMAN SACHS GROUP INSURED BY AMBAC INDEMNITY CORP NEW YORK STATE 837 MILLION CERTIFICATES OF PARTICIPATION VIA A FIRST ALBANY CORP GROUP PRINCE GEORGE COUNTY MD 50 MILLION GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP WISCONSIN HOUSING & ECONOMIC DEVELOPMENT AUTHORITY 120 MILLION SINGLEFAMILY MORTGAGE REVENUE BONDS VIA A LEHMAN BROTHERS GROUP 9302080027 930208 THE OUTLOOK THE FEDERAL RESERVE A VERY EASY TARGET BY DAVID WESSEL WASHINGTON WITH ONE OF THEIR OWN IN THE WHITE HOUSE DEMOCRATS HAVEN'T ANYONE LEFT TO BLAME FOR A DEARTH OF JOBS IN THE ECONOMY EXCEPT THE FEDERAL RESERVE SOMEBODY IS PREPARING A WHIPPING POST IN YOUR HONOR TEXAS REPUBLICAN REP RICHARD ARMEY TOLD FED CHAIRMAN ALAN GREENSPAN THE OTHER DAY YOU WILL GET FAR MORE BLAME THAN YOU DESERVE IN THE ENSUING MONTHS ALTHOUGH A LONGTIME REPUBLICAN MR GREENSPAN IS ACTUALLY A PRO AT BIPARTISAN POLITICS HE IS DEFTLY BUILDING BRIDGES TO THE NEW ADMINISTRATION MAKING A PREINAUGURAL PILGRIMAGE TO LITTLE ROCK AND PUBLICLY SOUNDING JUST AS AMENABLE TO PRESIDENT CLINTON'S ECONOMIC PHILOSOPHY AS HE WAS TO PRESIDENT BUSH'S DESPITE THE ECONOMY'S RECENT STRENGTH THE FED IS VULNERABLE IT'S AN ODDLY UNDEMOCRATIC INSTITUTION AND EVEN SOME FED OFFICIALS ADMIT THAT THE CENTRAL BANK MOVED TOO SLOWLY IN CUTTING INTEREST RATES OVER THE PAST COUPLE OF YEARS NEWLY CONVERTED TO MONETARISM DEMOCRATIC SENATORS PAUL SARBANES OF MARYLAND AND JAMES SASSER OF TENNESSEE REGULARLY TROT OUT CHARTS SHOWING THAT THE MONEY SUPPLY HAS GROWN MORE SLOWLY THAN THE FED WANTED CONGRESS PRODUCES BIGNAME ECONOMISTS FROM DEMOCRATS SUCH AS MIT'S PAUL SAMUELSON AND YALE'S JAMES TOBIN TO REPUBLICANS SUCH AS HARVARD'S MARTIN FELDSTEIN AND UNIVERSITY OF MICHIGAN'S PAUL MCCRACKEN TO COMPLAIN THAT THE FED HAS BEEN AND STILL IS TOO STINGY WITH CREDIT TOP FED OFFICIALS ARE ACCUSTOMED TO HOSTILE RHETORIC THOUGH THEY THINK THEY DESERVE CREDIT FOR RESPONDING TO FALLING ASSET PRICES MORE QUICKLY THAN THEIR FOREIGN COUNTERPARTS MR GREENSPAN ARGUES THAT THE SENATORS' MONEYSUPPLY CHARTS AREN'T THAT IMPORTANT AND HE MAY BE CORRECT BUT WHAT MAKES FED OFFICIALS REALLY EDGY IS THE CONGRESSIONAL FLIRTATION WITH BILLS THAT WOULD ALTER THE WAY THE FED IS RUN THE PROPOSALS HAVEN'T MUCH CHANCE OF BECOMING LAW THIS YEAR BECAUSE PRESIDENT CLINTON HASN'T SHOWN ANY INTEREST IN TAMPERING WITH THE FED THANKS IN PART TO MR GREENSPAN'S SUCCESSFUL SCHMOOZING NEVERTHELESS CONGRESS ISN'T DROPPING THE NOTION OF CHANGING THINGS AT THE FED PLANNED HEARINGS ON THE BILLS WILL RATTLE FINANCIAL MARKETS AND MAKE FED OFFICIALS UNEASY PARTICULARLY WHEN THE TIME COMES TO START THINKING ABOUT RAISING INTEREST RATES THAT OF COURSE IS ONE OF THE CONGRESSIONAL GOALS MR SAMUELSON THINKS IT WORKS IN 1983 PRIOR TO CHAIRMAN PAUL VOLCKER'S WISE ANTIRECESSION ACTIVISM THERE WERE THREE BILLS IN CONGRESS TO CURB THE FED'S POWERS HE SAYS ADDING TO PRESSURE ON THE FED TO CUT INTEREST RATES I JUDGE THAT TO HAVE BEEN A SALUTARY CASE OF AMERICAN DEMOCRACY AT WORK SHORTTERM INTEREST RATES ARE SET BY THE SEVEN PRESIDENTIAL APPOINTEES ON THE FED BOARD OF GOVERNORS AND BY THE 12 REGIONAL FED BANK PRESIDENTS FIVE OF WHOM VOTE AT ONE TIME THE PRESIDENTS ARE CHOSEN BY PRIVATESECTOR BOARDS SUBJECT TO THE APPROVAL OF THE FED GOVERNORS REP HENRY GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE HAS A BILL THAT WOULD GIVE THE WHITE HOUSE THE POWER TO APPOINT THE BANK PRESIDENTS FOR FIVEYEAR TERMS REDUCE COMMERCIAL BANKERS' ROLE IN OVERSEEING DISTRICT FED BANKS AND FORCE THE FED TO MAKE MORE DETAILED AND TIMELY DISCLOSURES ABOUT ITS DELIBERATIONS A BILL INTRODUCED BY SEN SARBANES AND DEMOCRATIC REP LEE HAMILTON OF INDIANA WOULD STRIP THE BANK PRESIDENTS OF THEIR VOTES ON MONETARY POLICY THE NEW CHAIRMAN OF THE JOINT ECONOMIC COMMITTEE REP DAVID OBEY A WISCONSIN DEMOCRAT HAS WONDERED ALOUD WHY THE FED BUDGET ISN'T SUBJECT TO CONGRESSIONAL CONTROL THE CURRENT FED STRUCTURE IS DIFFICULT TO JUSTIFY IN A DEMOCRACY ITS ORGANIZATION IS SO DATED THAT THERE IS ONLY ONE REGIONAL BANK WEST OF THE ROCKIES AND THERE ARE TWO IN THE STATE OF MISSOURI EVEN IN GERMANY WHERE THE BUNDESBANK'S INDEPENDENCE IS UNQUESTIONED THE HEADS OF THE REGIONAL BANKS ARE POLITICAL APPOINTEES THE FED'S DEFENSE IS THAT THE SYSTEM AS BIZARRE AS IT SEEMS WORKS HAVING A CENTRAL BANK WITH A MONOPOLY OVER THE ISSUANCE OF THE CURRENCY IN A DEMOCRATIC SOCIETY IS A VERY DIFFICULT BALANCING ACT MR GREENSPAN SAID RECENTLY A SIGNIFICANT RETRENCHMENT IN THE INDEPENDENCE OF THE INSTITUTION WOULD NOT SERVE THE AMERICAN PEOPLE EVEN SOME FED CRITICS ARE RELUCTANT TO CHANGE ITS STRUCTURE MR FELDSTEIN WARNS THAT SUBSTITUTING POLITICAL JUDGMENTS FOR ECONOMIC JUDGMENTS BRINGS A BUILTIN BIAS TOWARD INFLATION AND JOHN RUTLEDGE A GREENWICH CONN ECONOMIC CONSULTANT SAYS THE CONGRESSIONAL DEBATE ALONE WILL WORSEN THE SUSPICIONS OF INTERNATIONAL INVESTORS THAT YOU ARE GOING TO DO A JIMMY CARTER PUSHING INFLATION BACK UP AGAIN ONE OF THE SLOGANS OF THE CLINTON ADMINISTRATION IS REINVENT GOVERNMENT THE FED WOULD LIKE TO BE EXEMPT AND IT PROBABLY WILL BE THIS YEAR DESPITE SOME JABS FROM THE HILL BUT UNTIL THE RECOVERY BEGINS PRODUCING MORE JOBS CONGRESSIONAL SCRUTINY OF THE FED WILL BE INTENSE AND THAT MAY DETER THE FED FROM RAISING INTEREST RATES 9302080026 930208 SECOND THOUGHTS SOME FEAR A BACKLASH AS DETROIT PREPARES CHARGES AGAINST JAPAN CAR MAKERS CLAIM DUMPING' BUT BUYERS MAY ASK WHY BIG THREE CAN'T COMPETE POLING I'M NO PROTECTIONIST BY PAUL INGRASSIA AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL JAPANESE CAR MAKERS AREN'T UNFAIR SAYS 60YEAROLD HOWARD PAUL OF AMHERST MASS THEY BUILT A BETTER CAR THE AMERICANS FINALLY LEARNED BUT THEY CAN'T BLAME THEIR PROBLEMS ON THE JAPANESE THAT'S SILLY MR PAUL WHO OVERSEES MAINTENANCE AND NEW CONSTRUCTION AT HAMPSHIRE COLLEGE HAS HAD FIVE TOYOTAS AND HONDAS OVER THE YEARS BUT NOW IS PLANNING TO BUY A BUICK THAT'S GOOD NEWS FOR GENERAL MOTORS CORP BUT SENTIMENTS LIKE HIS HAVE JOHN F SMITH JR THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WORRIED AND WARY DETROIT'S BIG THREE AUTO MAKERS ARE POISED TO MAKE A SWEEPING FILING WITH FEDERAL TRADE REGULATORS ACCUSING JAPANESE AUTO MAKERS OF DUMPING CARS IN THE US AT UNFAIRLY LOW PRICES BUT AS THE FILING DATE NEARS IT COULD COME AS EARLY AS FRIDAY MR SMITH WONDERS ALOUD WHETHER THE STRATEGY MAY BACKFIRE WE'VE GOT TO LOOK AT THE CONSEQUENCES OF FILING THE CASE HE SAYS IF WE STIR UP THIS HORNETS' NEST BY BRINGING DOWN THE PROTECTIONIST LABEL THAT ISN'T WHAT I WANT TO SEE MR SMITH FEARS A REPLAY OF THE PUBLICRELATIONS DISASTER THAT OCCURRED LAST YEAR WHEN THE CHIEF EXECUTIVES OF THE BIG THREE JOINED PRESIDENT BUSH'S TRADE TRIP TO TOKYO AND THEY WERE GENERALLY PORTRAYED AS OVERPAID COMPLAINERS THE BACKLASH ISSUE IS NO DOUBT THE MOST IMPORTANT OF THE ISSUES WE DON'T WANT THE SAME TREATMENT THAT WE GOT WHEN THE THREE CEOS VISITED JAPAN THAT WAS A STEP BACKWARDS SOME OBSERVERS SAY THE TIMING OF THE FILING WOULD BE NO COINCIDENCE US TRADE OFFICIALS SAY DETROIT HAS BEEN COMPILING DATA FOR AN ANTIDUMPING CASE FOR AT LEAST FOUR YEARS BUT ONLY NOW WITH THE CLINTON ADMINISTRATION IN POWER DOES DETROIT APPEAR POISED TO ACTUALLY FILE SUCH A CASE THE OFFICIALS NOTE JUST LAST WEEK THE US THREATENED TO IMPOSE SANCTIONS ON EUROPEAN TELECOMMUNICATION COMPANIES IN RESPONSE TO EUROPEAN TRADE RESTRICTIONS AND THE TREASURY DEPARTMENT IS IN THE MIDST OF A REVIEW THAT COULD BOOST TARIFFS ON MINIVANS AND SPORTSUTILITY VEHICLES TO 25 FROM 25 ALREADY THE ADMINISTRATION IS DEFENDING ITS TRADE POLICIES THIS IS NOT A PROTECTIONIST ADMINISTRATION COMMERCE SECRETARY RON BROWN SAID YESTERDAY ON NBCTV'S MEET THE PRESS HE ADDED THIS IS AN ADMINISTRATION THAT BELIEVES IN OPENING MARKETS A DUMPING FILING COULD BE A BIG HEADACHE FOR THE JAPANESE CAR COMPANIES WHICH IN RECENT YEARS HAVE VOLUNTARILY EXTENDED LIMITS ON THEIR IMPORTS TO TRY TO KEEP US PROTECTIONISTS AT BAY THEY WOULD HAVE TO POUR TIME AND MONEY INTO DEFENDING THEMSELVES EVEN IF THEY WIN IN THE END BUT FOR MORE THAN A DECADE PROTECTIONIST MEASURES RANGING FROM QUOTAS ON JAPANESE IMPORTS TO DEMANDS THAT THE JAPANESE BUILD CARS IN THE US HAVE WOUND UP INFLICTING MOST OF THEIR DAMAGE ON DETROIT AND NOW MR SMITH'S REMARKS MADE TO REPORTERS FRIDAY AT THE CHICAGO AUTO SHOW INDICATE A GROWING AWARENESS THAT A DUMPING FILING ALSO COULD POSE SIGNIFICANT RISKS TO THE BIG THREE CHIEF AMONG THEM IS THAT THE BIG THREE MIGHT PAINT THEMSELVES AS WHINING PROTECTIONISTS UNABLE OR UNWILLING TO COMPETE AND DETERMINED TO FORCE UP JAPANESE CAR PRICES ARTIFICIALLY TO GIVE THEMSELVES LOTS OF LEEWAY TO RAISE THEIR OWN CREATING THAT PUBLIC IMPRESSION COULD BE A COSTLY PROBLEM AT A TIME WHEN THE BIG THREE ARE STARTING TO WIN BUYERS SUCH AS MR PAUL BACK TO THEIR FOLD A DUMPING FILING WOULD BE LIKE PUTTING A STICK OF DYNAMITE IN YOUR BACK POCKET AND SAYING IF SOMEBODY KICKS ME THEY'LL GET HURT' SAYS J FERRON VICE PRESIDENT OF JD POWER & ASSOCIATES AN AUTOMOTIVE CONSULTING CONCERN THERE ARE OTHER RISKS AS WELL INCLUDING DAMAGING JOINTVENTURE RELATIONSHIPS THE JAPANESE SUPPLY DETROIT WITH CARS AND PARTS AND DETROIT HOPES TO WIN JAPANESE ORDERS FOR ITS PARTS THEY'VE ASKED US TO BE PARTNERS WITH THEM AND THEN THEY LITERALLY TURN AROUND AND PUT A STICK IN YOUR HEART SAYS THOMAS MIGNANELLI WHO HEADS THE US OPERATIONS OF NISSAN MOTOR CO NISSAN JOINED FORCES WITH FORD MOTOR CO TO DEVELOP A MINIVAN THAT IS SOLD AS BOTH THE NISSAN QUEST AND MERCURY VILLAGER BUT A DUMPING FILING SAYS MR MIGNANELLI HIMSELF A FORMER FORD EXECUTIVE WILL MAKE NISSAN THINK TWICE NOW ABOUT ANOTHER JOINT VENTURE A TRADE WAR ALSO RISKS DENTING DETROIT'S AMBITIOUS EXPORT GOALS THE BIG THREE EXPORTED A RECORD 296000 CARS AND TRUCKS FROM NORTH AMERICA LAST YEAR THAT'S JUST A FRACTION OF THE VEHICLES EXPORTED FROM JAPAN BUT DETROIT PROMISES TO DO MORE FORD FOR EXAMPLE WANTS ITS ANNUAL EXPORTS TO JUMP FOURFOLD TO 200000 VEHICLES A YEAR BY THE END OF THE DECADE THOSE DANGERS THOUGH AREN'T DETERRING FORD CHAIRMAN HAROLD A POLING WHO HAS EMERGED AS THE MOST VOCAL PROPONENT OF PROTECTIONISM IN THE WAKE OF THE RECENT RETIREMENT OF LEE A IACOCCA AS CHAIRMAN OF CHRYSLER CORP MR POLING IS THE DRIVING FORCE BEHIND A DUMPING FILING WHICH HE SAYS WOULD BE DIRECTED ONLY AT JAPANESE CAR COMPANIES NOT AGAINST THE EUROPEANS AND KOREANS MR POLING ANGRILY REJECTS THE PROTECTIONIST LABEL AND SAYS HIS REAL MISSION IS TO DEFEND AN OPEN WORLDTRADING SYSTEM FROM ABUSE BY JAPAN WE MUST CONVINCE EACH OF OUR TRADING PARTNERS THAT ALL WILL PAY THE PRICE IF THE PRESENT TRADING IMBALANCES ARE MAINTAINED INCLUDING JAPAN MR POLING TOLD THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION CONVENTION IN NEW ORLEANS LAST WEEKEND HE REPEATED HIS CALL FOR JAPAN TO VIRTUALLY ELIMINATE ITS HUGE TRADE SURPLUS WITH THE US WITHIN FIVE YEARS EITHER BY INCREASING IMPORTS OR CUTTING EXPORTS THAT SURPLUS AMOUNTED TO 35 BILLION IN THE FIRST THREE QUARTERS OF 1992 AND TO 443 BILLION IN 1991 ABOUT HALF THAT SURPLUS IS RELATED TO AUTOMOBILES SO THE JAPANESE WOULD HAVE ALMOST NO CHOICE BUT TO SHARPLY REDUCE CAR SALES IN THE US TO MEET MR POLING'S GOAL BUT THE COMPLEXITIES OF THE GLOBAL AUTO BUSINESS PUT MR POLING ON THE DEFENSIVE EVEN AS HE TOOK TO THE ATTACK THE DEALERS' ASSOCIATION OPPOSES RESTRICTIONS ON JAPANESE IMPORTS MORE THAN HALF OF THE ASSOCIATION'S MEMBERS HAVE IMPORT FRANCHISES MANY CARRY BOTH IMPORT AND DOMESTIC BRANDS WHICH SETS DETROIT AGAINST ITS OWN DEALER BODY ON THE DUMPING ISSUE WHAT'S MORE AT A PRESS CONFERENCE FOLLOWING HIS SPEECH MR POLING FOUND HIMSELF HAVING TO DENY THAT HIS OWN COMPANY IS DUMPING CARS IN THE US FORD BOUGHT BRITAIN'S JAGUAR CARS PLC THREE YEARS AGO AND JAGUAR HAS RACKED UP HUGE LOSSES EVER SINCE SELLING BELOW PRODUCTION COSTS IS ONE DEFINITION OF DUMPING THE OTHER IS SELLING IN A FOREIGN MARKET BELOW THE HOMEMARKET PRICE A FORD SPOKESMAN SAID LATER HE COULDN'T EXPLAIN WHY SELLING JAGUARS AT A LOSS DOESN'T QUALIFY AS DUMPING BUT THAT HE'S SURE MR POLING'S DENIAL WAS CORRECT MEANWHILE THE JAPANESE CAR COMPANIES ARE STARTING TO FIGHT BACK IN PUBLIC BY PAINTING DETROIT'S ASSAULT AS ANTICONSUMER DETROIT'S MISSION IS TO RESTRICT JAPANESE MARKET SHARE AND INCREASE PRICES OF JAPANESE CARS SO THEY CAN RAISE THEIR OWN PRICES TOYOTA MOTOR CORP EXECUTIVE J DAVIS ILLINGWORTH DECLARED LAST WEEK HE ADDED THAT TOYOTA NOW EMPLOYS 16000 AMERICANS IN ITS US FACTORIES AND OFFICES AND THAT 40 OF THE VEHICLES TOYOTA SELLS IN THE US THIS YEAR WILL BE MADE IN NORTH AMERICA IT'S WORTH REVIEWING WHAT MORE THAN A DECADE OF EFFORTS TO BUFFER DETROIT FROM THE FULL IMPACT OF JAPANESE COMPETITION HAS ACCOMPLISHED IN 1981 JAPAN UNDER INTENSE PRESSURE FROM THE US GOVERNMENT ANNOUNCED VOLUNTARY RESTRAINTS ON AUTOMOBILE EXPORTS TO THE US THE IDEA WAS TO GIVE DETROIT BREATHING ROOM BUT THE UNINTENDED EFFECT WAS TO ALLOW JAPANESE CARS TO SELL AT PREMIUM PRICES THE JAPANESE EARNED ENORMOUS PROFITS THEY USED THE MONEY TO EXPAND BEYOND SMALL CARS AND DEVELOP THE MIDSIZE AND LUXURY CARS THAT BEDEVILED THE BIG THREE LATER IN THE DECADE DETROIT'S NEXT TACK WAS TO DEMAND THAT THE JAPANESE BUILD CARS IN THE US ON THE THEORY THAT HAVING TO DEAL WITH AMERICAN WORKERS WOULD DERAIL THE JAPANESE JUGGERNAUT IT DIDN'T WORK OUT THAT WAY HONDA MOTOR CO OPENED THE FIRST JAPANESE TRANSPLANT IN OHIO IN 1982 NOW A DECADE LATER THERE ARE 10 JAPANESE ASSEMBLY PLANTS IN THE US MORE THAN CHRYSLER HAS AND A HOST OF OTHER FACTORIES THAT BUILD ENGINES AND PARTS THEY'VE GIVEN THE JAPANESE MORE CARS TO SELL INSULATED THEM AGAINST THE DECLINE OF THE DOLLAR AND ALLOWED THEM TO LAUNCH THEIR OWN MADE IN AMERICA MARKETING EFFORTS WITH THE PUBLIC THE TRANSPLANTS EXPERTS SAY HAVE PROVED TO BE GOOD FOR AMERICA AND GOOD FOR THE JAPANESE BUT NOT GOOD FOR DETROIT NEXT CAME THE BIG CURRENCY SWING BETWEEN 1985 AND 1987 THE JAPANESE YEN MORE THAN DOUBLED IN VALUE AGAINST THE DOLLAR THANKS TO A CONCERTED EFFORT BY BOTH GOVERNMENTS THE JAPANESE WERE FORCED TO SHARPLY RAISE THE PRICES OF THEIR CARS TO MAINTAIN PROFITS AND THEIR STEADY GAINS IN US MARKET SHARE SUDDENLY CEASED BUT ONLY FOR A WHILE THE BIG THREE THOUGH THEY HOTLY DENY IT USED THE JAPANESE PRICE INCREASES AS AN UMBRELLA UNDER WHICH TO RAISE THEIR OWN PRICES IN THE END THE BIG THREE GAINED A PRICE ADVANTAGE FOR MANY VEHICLES BUT IT WASN'T BIG ENOUGH TO CONVINCE MANY AMERICANS TO SWITCH BACK TO CHEVYS FORDS AND DODGES BY THE END OF THE 1980S JAPANESE MARKET SHARE SURGED PAST 30 FROM LESS THAN 20 A DECADE EARLIER SO NOW DETROIT APPEARS TO BE ON THE VERGE OF ANOTHER PROTECTIONIST PUSH FINANCIAL STAFFERS AT ALL THREE COMPANIES HAVE BEEN PORING OVER DATA ON JAPANESE PRODUCTION COSTS AND PRICING THIS WEEK THEIR BOSSES MR POLING OF FORD MR SMITH OF GM AND CHRYSLER CHAIRMAN ROBERT EATON WILL REVIEW THE NUMBERS A DUMPING FILING OR AT LEAST A DECISION WHETHER TO FILE IS EXPECTED ON FRIDAY THE GOVERNMENT AGENCIES THAT WILL DECIDE THE CASE ARE THE COMMERCE DEPARTMENT AND THE INTERNATIONAL TRADE COMMISSION WHICH IS AN INDEPENDENT GOVERNMENT AGENCY COMMERCE DECIDES WHETHER DUMPING OCCURRED THE ITC MAKES A SEPARATE RULING ON WHETHER THE DOMESTIC INDUSTRY WAS ACTUALLY INJURED WITHOUT INJURY NO DUTIES CAN BE ASSESSED TRADE LAWYERS AND AUTO EXPERTS SAY DUTIES OF BETWEEN 4 AND 10 COULD RESULT IF DETROIT PREVAILS BOTH COMMERCE AND THE ITC HAVE WIDE LATITUDE TO ADJUST THE DATA IN THE CASE BASED ON THEIR OWN ASSUMPTIONS IF THEY WANT TO DO THE JAPANESE IN THEY CAN DO THAT SAYS HANS MUELLER AN ECONOMICS PROFESSOR AND DUMPING EXPERT AT MIDDLE TENNESSEE STATE UNIVERSITY IF THEY WANT TO LET THEM OFF THE HOOK THEY CAN DO THAT TOO IT ADDS UP TO A COMPLEX PROCEEDING THAT PRODUCES LOADS OF WORK FOR LAWYERS AND LOBBYISTS BUT THE MOST IMPORTANT JUDGMENTS WILL BE MADE BY MILLIONS OF AMERICANS IN THE COURT OF PUBLIC OPINION AND THAT IS WHERE DETROIT RUNS THE RISK OF SEEING ITS LATEST OFFENSIVE BACKFIRE MANY AMERICANS NO DOUBT HARBOR SOME RESENTMENT ABOUT RECENT JAPANESE EXPORT SUCCESSES BUT MANY OTHERS HOLD DEEP SUSPICIONS OF DETROIT BASED ON THEIR OWN EXPERIENCES THEY ARE WHIIIIINING WITH A CAPITAL W DECLARES MARTE STEVENSON A TRAVEL COMPANY MANAGER IN WASHINGTON IF THEY MAKE THE RIGHT PRODUCTS THEY'LL SELL MS STEVENSON'S FAMILY HAS A 1984 NISSAN AND A 1988 HONDA ACURA BUT IN RECENT MONTHS SHE HAS LISTENED TO A LITANY OF PROBLEMS THAT HER BROTHERINLAW HAD WITH HIS TWOYEAROLD CHRYSLER LEBARON WHY CAN'T US MANUFACTURERS JUST MATCH THE QUALITY OF JAPANESE CARS ASKS RAMZI FARIS A 27YEAROLD INTERNATIONAL AFFAIRS CONSULTANT IN WASHINGTON MR FARIS CURRENTLY DOESN'T OWN A CAR HE HAS DRIVEN BOTH AMERICAN AND JAPANESE MODELS IN THE PAST AND PLANS TO BUY SOMETHING HE HASN'T DECIDED WHAT OVER THE NEXT YEAR AFTER CHECKING OUT TOYOTA TERCELS NISSAN SENTRAS AND HONDA CIVICS RECENTLY HE DECLARES THE PRICES DON'T SEEM CHEAP I CAN'T SEE THAT THEY'RE SELLING UNDER COST IT'S OPINIONS LIKE THOSE THAT ARE GIVING PAUSE TO GM'S MR SMITH WHO SEEMS OF TWO MINDS ABOUT THE TRADE ISSUE THERE ARE CARS BEING SOLD IN THIS MARKET FOR LESS THAN THEY SELL IN THE HOME MARKET HE SAYS WITHOUT BEING SPECIFIC IF THAT'S THE ONLY WAY THEY CAN SURVIVE HERE HE SAYS THEN THESE COMPANIES SHOULDN'T BE IN THE BUSINESS OF SELLING CARS IN THIS COUNTRY HOW DO WE HANDLE THAT BUT MR SMITH ALSO SAYS THAT THE REACTION TO A DUMPING PETITION IS AS IMPORTANT AS THE LEGAL MERITS OF THE CASE THAT'S THE GM POSITION HE ADDS IT ISN'T NECESSARILY THE INDUSTRY POSITION INDEED NOT THE DECISION ON WHETHER TO FILE DUMPING CHARGES SHOULD BE MADE ON THE MERITS OF THE CASE MR POLING DECLARES WE CAN'T CONTROL STATEMENTS IN THE PRESS IRONICALLY THE PROTECTIONIST PUSH COMES AS DETROIT'S PERFORMANCE IS STARTING TO IMPROVE THE FORD TAURUS DISPLACED THE HONDA ACCORD AS AMERICA'S TOPSELLING CAR LAST YEAR IN JANUARY JAPANESE MARKET SHARE IN THE US TUMBLED TO 27 FROM 30 A YEAR EARLIER DESPITE A WEAK PERFORMANCE FROM GM WHOSE MIDSIZE SEDANS BADLY NEED AN OVERHAUL WITH CAR SALES SLUMPING IN THEIR HOME MARKET JAPANESE AUTO MAKERS ARE SUFFERING FROM WHAT NOW LOOKS LIKE EXCESS EXPANSION IN RECENT YEARS MAZDA MOTOR CO RECENTLY CANCELED PLANS FOR A NEW LUXURY BRAND IN THE US AND IN JAPAN INDUSTRYWATCHERS WOULDN'T BE SURPRISED IF SOME ASSEMBLY PLANTS WERE FORCED TO CLOSE ALL THIS MAKES A DUMPING FILING EVEN RISKIER FOR DETROIT SOME EXPERTS BELIEVE THIS WILL BOOMERANG AND HIT US AUTO COMPANIES ON THE BACK OF THE HEAD SAYS PROF MUELLER IT WILL BACKFIRE AGAINST THE INDUSTRY 9302080025 930208 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9302080024 930208 WHAT'S NEWS BUSINESS AND FINANCE MICROSOFT WON AN INITIAL REPRIEVE AS A SHARPLY DIVIDED FTC DECLINED TO SEEK A COURT INJUNCTION TO FORCE THE SOFTWARE MAKER TO HALT PRACTICES THAT ITS COMPETITORS CONTEND VIOLATE ANTITRUST LAW BUT THE AGENCY MAY STILL DECIDE TO TAKE ADMINISTRATIVE ACTION AGAINST MICROSOFT THE COMPANY'S STOCK PRICE JUMPED 4 TO 89 A SHARE JOB GROWTH ACCELERATED IN JANUARY HELPING LOWER THE UNEMPLOYMENT RATE TO 71 FROM 73 IN DECEMBER BUT CLINTON CALLED THE INCREASE IN JOBS INSUFFICIENT AND HIS LABOR CHIEF SAID THE ADMINISTRATION IS LIKELY TO PROCEED WITH PLANS TO STIMULATE THE ECONOMY THE FED ENDED IN DECEMBER ITS PREDISPOSITION TOWARD LOWER INTEREST RATES CITING POSITIVE ECONOMIC SIGNS GENERAL MOTORS SAID IT HAD A VERY STRONG FOURTH QUARTER AND HINTED THAT THE COMPANY'S NORTH AMERICAN OPERATIONS WERE PROFITABLE IN THE PERIOD AFTER A SERIES OF COSTCUTTING MOVES GM IS LAUNCHING AN ALLOUT PUBLIC RELATIONS CAMPAIGN TO DEFEND THE SAFETY OF ITS 19731987 PICKUP TRUCKS BUILT WITH SIDEMOUNTED GAS TANKS IBM IS SPEEDING UP PLANS TO SPLIT OFF ITS PERSONALCOMPUTER AND DISKDRIVE BUSINESSES THE CHANGES COULD INVOLVE BRINGING IN OUTSIDE INVESTORS OR ISSUING SECURITIES LINKED TO THE UNITS SEPARATELY IBM IS EXPECTED TO ABOLISH ITS PRICE LIST FOR MAINFRAME COMPUTERS THE LABOR DEPARTMENT IS EXPECTED TO PUSH A PLAN TO RAISE THE MINIMUM WAGE NOW 425 AN HOUR BY UP TO 10 AND THEN TO INDEX IT TO INFLATION BUSINESS GROUPS INTEND TO FIGHT THE PLAN SAYING IT WILL COST US JOBS A CLAIM DISPUTED BY THE LABOR DEPARTMENT BLUECHIP STOCKS RALLIED AGAIN SENDING THE DOW JONES INDUSTRIALS FURTHER INTO RECORD TERRITORY THE INDEX SURGED 2540 POINTS TO 344214 BUT BROADER AVERAGES LOST GROUND BOND PRICES MEANWHILE ALSO ADVANCED TENNESSEE SECURITIES LAWYER JAMES CHEEK III EMERGED AS A STRONG CONTENDER TO BE CHAIRMAN OF THE SEC MEANWHILE THE FRONTRUNNER TO RUN THE FDIC IS WILLIAM BOWEN A FORMER LITTLE ROCK BANKER AND EXCLINTON AIDE FINANCIER GEORGE SOROS 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 OLYMPIA & YORK'S PLAN TO RESTRUCTURE ITS CANADIAN BUSINESS WON A BANKRUPTCY COURT'S FINAL APPROVAL BRITISH AIRWAYS CHAIRMAN LORD KING STEPPED DOWN IN THE WAKE OF A SCANDAL ABOUT ITS ALLEGED DIRTY TRICKS AGAINST RIVAL VIRGIN ATLANTIC DEPUTY CHAIRMAN AND CEO SIR COLIN MARSHALL WAS NAMED TO SUCCEED HIM AMERICAN AIRLINES SAID IT EXPECTS 1993 TO REQUIRE MORE RETRENCHMENT AND AUSTERITY FOR THE AMR UNIT THE CARRIER IS CONSIDERING REDUCING ITS FLEET AND ENDING SERVICE TO CERTAIN CITIES KEMPER IS SETTING ASIDE 265 MILLION TO COVER WIDENING REAL ESTATE LOSSES RESULTING IN A NET LOSS FOR 1992 THE INSURER'S STOCK SANK 2375 TO 32 INTEL ASKED PERSONALCOMPUTER MANUFACTURERS TO DELAY BY TWO MONTHS THEIR PLANS TO SELL MACHINES BASED ON THE COMPANY'S NEW MICROPROCESSOR PFIZER'S HEART DRUG PROCARDIA IS INEFFECTIVE AND PERHAPS HAZARDOUS WHEN GIVEN TO PATIENTS IMMEDIATELY AFTER A HEART ATTACK A STUDY FOUND BONDS LEHMAN BROTHERS TREASURY INDEX 486955 UP 1548 COMMODITIES OIL 2021 A BARREL OFF NINE CENTS DOW JONES FUTURES INDEX 12283 OFF 101 SPOT INDEX 12233 UP 070 DOLLAR 12443 YEN OFF 022 16590 MARKS UP 00030 9302080023 930208 PRICING HEALTH CARE PROGNOSIS GOOD FOR LOWER MEDICAL INFLATION BY MICHAEL RAPPEPORT PRESIDENT CLINTON DEMONSTRATED HIS STRONG DESIRE TO INCREASE ACCESS TO MEDICAL CARE AND CONTAIN HEALTHCARE COSTS BY NAMING HILLARY CLINTON TO OVERSEE THE REALIZATION OF THIS ELUSIVE DREAM INDEED IF BILL CLINTON COULD HAVE JUST ONE WISH HE MIGHT WELL CHOOSE A MEDICAL INFLATION RATE NO HIGHER THAN THE OVERALL INFLATION RATE SURPRISE SUCH A WISH MAY WELL BE ON THE WAY TO COMING TRUE IN SIX MONTHS APRILOCTOBER 1992 THE ANNUALIZED RISE IN THE CONSUMER PRICE INDEX WAS ABOUT 33 WHILE THE MEDICAL COMPONENT OF THAT INDEX WAS UP 56 THIS 23PERCENTAGEPOINT GAP BETWEEN MEDICAL INFLATION AND OVERALL INFLATION IS THE SMALLEST IN YEARS AND CLOSING STEADILY JUST A YEAR AGO IT WAS ABOUT 43 PERCENTAGE POINTS WHICH IN TURN WAS A MAJOR IMPROVEMENT FROM THE MID AND LATE 1980S WHEN THE GAPS WERE REGULARLY FIVE TO SIX POINTS A TWOPERCENTAGEPOINT IMPROVEMENT FOR A SINGLE YEAR IS NOTHING TO SNEER AT IN A COUNTRY THAT SPENDS ABOUT THREEQUARTERS OF A TRILLION DOLLARS YEARLY ON MEDICAL COSTS A TWOPERCENTAGEPOINT DIFFERENCE AMOUNTS TO MORE THAN 15 BILLION IN THE FIRST YEAR BUT THE REAL GAINS COME WHEN THE RATE IS COMPOUNDED IN THE FOUR YEARS OF A PRESIDENTIAL TERM THIS WOULD COMPOUND TO MORE THAN 150 BILLION EVEN THE SHORTTERM IMPROVEMENT OVER A FEW MONTHS MAY HAVE BEEN A KEY REASON THAT SPENDING ON MEDICARE AND MEDICAID IN THE FOURTH FISCAL QUARTER JULYSEPTEMBER 1992 WAS ACTUALLY LOWER THAN HAD BEEN ESTIMATED IN JULY ANY WONDER A DECLINE IN MEDICAL COST INFLATION OUGHT TO BE THE PRESIDENT'S NUMBER ONE WISH CYNICS MAY DISMISS THE NARROWING GAP BETWEEN MEDICAL INFLATION AND OVERALL INFLATION AS A STATISTICAL ABERRATION BUT THE EVIDENCE IS THAT THERE HAS BEEN A SIGNIFICANT CHANGE IN THE FORCES DRIVING HEALTHCARE COSTS ONE THAT BODES WELL FOR THE NEXT FEW YEARS TO QUANTIFY THIS CHANGE WE NEED TO CLEAR AWAY SOME MISCONCEPTIONS AS TO WHY MEDICAL COSTS ROSE SO SHARPLY FOR MOST OF THE 1980S THE REAL IMPETUS TO THE ACCELERATION IN MEDICAL COSTS STARTED WITH A CRISIS ABOUT A DECADE AGO NOT IN COSTS AS IS COMMONLY THOUGHT BUT IN THE AVAILABILITY OF BASIC CARE AT ITS CORE WAS AN ALARMING SHORTAGE OF NURSES HOSPITALS WERE DESPERATE MANY ADMINISTRATORS SENT RECRUITERS AS FAR AFIELD AS INDONESIA AND THE PHILIPPINES THE CRISIS WAS VIEWED AS PERMANENT AFTER ALL EVERYONE KNEW ALL KINDS OF REASONS WHY YOUNG AMERICANS DIDN'T WANT TO BE NURSES ANYMORE THEN A FUNNY THING HAPPENED THE MARKET SYSTEM WENT TO WORK AND THE IMBALANCE BETWEEN SUPPLY AND DEMAND LED TO A CHANGE NURSING SALARIES CLIMBED REACHING A POINT WHERE THEY WERE ATTRACTIVE ENOUGH TO BOOST THE SUPPLY OF NURSES ENROLLMENTS IN NURSING SCHOOLS AFTER A LONG PERIOD OF DECLINE STARTED TO RISE AND NOT AN HOUR TOO SOON IN 1981 A 150BED SUBURBAN HOSPITAL WHERE I DO CONSULTING USED ABOUT 286000 HOURS OF MEDICAL/SURGICAL AND CRITICALCARE NURSING OR ROUGHLY THE EQUIVALENT OF 143 FULLTIME NURSES IN 1991 THE HOURS HAD ACTUALLY DECREASED TO 281000 OR ABOUT 2 1/2 FEWER NURSING YEARS YET THE PAYROLL FOR THOSE NURSING HOURS HAD CLIMBED FROM 2 MILLION TO 45 MILLION IN JUST 10 YEARS THE COST PER NURSING HOUR HAD RISEN 125 COMPARE THAT WITH THE GENERAL COSTOFLIVING RISE FOR THAT PERIOD OF JUST 45 AT THE SAME TIME THE NURSING SHORTAGE INTENSIFIED THERE WAS A SHORTAGE OF TECHNICIANS MAJOR ADVANCES IN DIAGNOSIS AND REHABILITATION GENERATED DEMAND FOR A VARIETY OF THESE PROFESSIONALS AND HOSPITALS AND PHYSICIANS SUDDENLY NEEDED MORE STAFF IN THE NEW ARENAS OF ULTRASOUND CAT SCANNERS MRIS AND CARDIAC ANGIOGRAPHY SUCH HIGHTECH EQUIPMENT WAS ITSELF THE THIRD BIGGEST FACTOR IN INCREASED COSTS THIS IS NOT SO MUCH A CLASSIC IMBALANCE IN SUPPLY AND DEMAND AS A CASE OF WHAT HAPPENS WHEN SOMETHING NEW AND BETTER IS INVENTED WHILE THE TOTAL NUMBER OF NONDIAGNOSTIC SURGICAL PROCEDURES ON A PERCAPITA BASIS WENT DOWN THE NUMBER OF EXPENSIVE HIGHTECH DIAGNOSTIC PROCEDURES PER PERSON DOUBLED LIKELY SOME WERE UNNEEDED DEFENSIVE MEDICINE BUT THIS TESTING DID HELP TO LOWER THE DEATH RATE FROM HEART DISEASE FOR MEN AGE 55 TO 64 TO SLIGHTLY MORE THAN HALF OF WHAT IT WAS IN 1960 NOT ALL MEDICAL COSTS WENT UP SO FAST ONE THAT DIDN'T WAS DOCTORS' INCOME PHYSICIANS' FEES AREN'T PHYSICIANS' INCOMES THE MEDIAN DOCTOR'S INCOME FROM PRACTICE RISES AT A SLIGHTLY SLOWER RATE THAN OVERALL INFLATION WHILE OFFICE EXPENSES RISE AT A RATE MORE THAN DOUBLE THAT OF INFLATION AND WHAT ARE THE MAIN FORCES IN DOCTORS' OFFICE EXPENSES OUR OLD FRIENDS NURSING AND TECHNICIAN SALARIES AND THE COST OF ALL THAT NEWFANGLED EQUIPMENT SOME GOOD NEWS HOSPITAL ADMINISTRATORS REPORT THAT THE NURSING PROFESSION NOW ATTRACTS AND HOLDS PEOPLE AT THE SAME TIME THAT SALARIES HAVE STABILIZED WHILE REPLACEMENT OF THE FIRST GENERATION OF NEW DIAGNOSTIC EQUIPMENT WILL COST MONEY MUCH OF THAT EQUIPMENT IS COMPUTERBASED AND EACH NEW GENERATION OF EQUIPMENT COSTS LESS THAN THE OLD MOREOVER GENERATION TWO RARELY INVOLVES AN INCREASE IN PERSONNEL PARTLY AS A RESULT THE NUMBER OF TECHNICIANS IN MANY SUBFIELDS IS CATCHING UP WITH DEMAND AND THE PRESSURE FOR SHARP SALARY INCREASES HAS ABATED IN SUM IT IS CLEAR THAT ALL THREE CRITICAL INFLATIONARY PRESSURES ARE VAPORIZING SO MR CLINTON OUGHT TO MAKE THAT ONE WISH IT CAN COME TRUE MR RAPPEPORT IS A PARTNER IN A RESEARCH AND MANAGEMENT CONSULTING FIRM IN PRINCETON NJ 9302080022 930208 BUSINESS BRIEF ABEX INC FIRM POSTS WIDENED LOSS OF 1861 MILLION FOR PERIOD ABEX INC CITING A CHARGE FOR WRITING DOWN GOODWILL POSTED A WIDENED FOURTHQUARTER LOSS OF 1861 MILLION OR 942 A SHARE THE HAMPTON NH COMPANY SAID ITS FOURTHQUARTER CHARGE OF 1869 MILLION OR 946 A SHARE REPRESENTED A WRITEDOWN OF GOODWILL AND OTHER INTANGIBLES THAT IT TOOK TO REFLECT A DECLINE IN ITS COMMERCIAL AND MILITARY AEROSPACE SALES THE FOURTHQUARTER LOSS COMPARED WITH A YEAREARLIER LOSS OF 23 MILLION OR 12 CENTS A SHARE SALES FELL TO 1686 MILLION FROM 1806 MILLION ABEX FORMERLY THE PNEUMO CORP UNIT OF HENLEY GROUP WAS SPUN OFF IN JULY IT MAKES BRAKES AND LANDING SYSTEMS FOR AIRPLANES AND OTHER TRANSPORTATION EQUIPMENT THE COMPANY HAS BEEN STRUGGLING AS A RESULT OF A SLUMP IN THE AEROSPACE INDUSTRY IN NOVEMBER IT CUT EXECUTIVE SALARIES BY AS MUCH AS 27 AND FROZE OTHER SALARIES AND WAGES ABEX SAID THAT IT EXPECTS TO BE PROFITABLE IN 1993 DESPITE PROJECTED LOWER SALES THE COMPANY SAID IT WILL BENEFIT THIS YEAR FROM DECREASED INTEREST EXPENSE AND CONTINUING COSTCUTTING 9302080021 930208 BUSINESS BRIEF BURLINGTON INDUSTRIES INC TENTATIVE PACT IS REACHED OVER WORKERS' PENSION SUIT BURLINGTON INDUSTRIES INC A GREENSBORO NC TEXTILE CONCERN HAS REACHED A TENTATIVE SETTLEMENT WITH EMPLOYEES FOR 73 MILLION IN A FOURYEAROLD LAWSUIT OVER PENSIONS THE SUIT CONCERNS PENSIONS FOR 6000 EMPLOYEES OF ABOUT 20 BURLINGTON UNITS SPUN OFF TO REDUCE DEBT AFTER THE COMPANY'S LEVERAGED BUYOUT IN 1987 THE CLASS ACTION LAWSUIT ARGUED EMPLOYEES WERE ENTITLED TO RECEIVE THEIR PENSIONS WHEN THEY LEFT BURLINGTON RATHER THAN WHEN THEY RETIRED FROM THE COMPANIES THAT BOUGHT THE SPUNOFF UNITS A BURLINGTON SPOKESMAN SAID THE SUIT INVOLVES PENSION TRUST FUNDS THAT WERE ALREADY SET ASIDE THE DISPUTE CONCERNED WHEN THE FUNDS WOULD BE DOLED OUT ANY SETTLEMENT WOULD NOT BE EXPECTED TO HAVE A MATERIAL FINANCIAL IMPACT ON THE COMPANY HE SAID JOHN ENGLAR THE COMPANY'S GENERAL COUNSEL SAID SETTLEMENT DISCUSSIONS ARE ONGOING HE DECLINED TO COMMENT FURTHER THE SETTLEMENT IS STILL SUBJECT TO APPROVAL BY THE US DISTRICT COURT IN RALEIGH NC KIRAN MEHTA ATTORNEY FOR THE PLAINTIFFS SAID THE CASE WOULD HAVE LITTLE IMPACT ON OTHER COMPANIES' PENSION DISPUTES BECAUSE BURLINGTON'S PLAN HAS UNIQUE PROVISIONS AS TO WHEN PENSIONS CAN BE PAID 9302080020 930208 INTERNATIONAL BRIEF MINOLTA CAMERA CO OFFER ON EARLY RETIREMENT IS MADE TO 1700 EMPLOYEES JAPAN'S MINOLTA CAMERA CO BEGAN ASKING EMPLOYEES TO VOLUNTARILY RETIRE BEFORE THE MANDATORY RETIREMENT AGE OF 60 COMPANY OFFICIALS SAID THE OFFER APPLIES TO 1700 EMPLOYEES WHO HAVE WORKED FOR AT LEAST 20 YEARS AND ARE OVER 40 YEARS OLD WITH THE OFFER THE COMPANY AIMS TO GATHER SOME 300 APPLICANTS DURING AN 11DAY INVITATION PERIOD THAT STARTED FRIDAY THE EARLY RETIREMENT PROGRAM FOLLOWS A PLAN TO CUT 1000 EMPLOYEES FROM THE CAMERA MAKER'S WORK FORCE BY FREEZING HIRING OVER THE NEXT THREE YEARS DEPARTING WORKERS WILL RECEIVE REGULAR RETIREMENT BENEFITS AND SPECIAL PREMIUMS OF AS MUCH AS 20 ACCORDING TO THEIR AGES MINOLTA SAID MINOLTA POSTED AN UNCONSOLIDATED PRETAX LOSS OF ABOUT 85 BILLION YEN 683 MILLION FOR THE YEAR ENDED IN MARCH 1992 HARD HIT BY SLUGGISH SALES AND 169 BILLION YEN IN COMPENSATION PAID TO HONEYWELL INC IN AN OUTOFCOURT SETTLEMENT OVER A PATENT INFRINGEMENT DISPUTE 9302080019 930208 BUSINESS BRIEF MORRISON KNUDSEN CORP FOURTHQUARTER NET INCOME CLIMBED 21 TO 69 MILLION MORRISON KNUDSEN CORP BOISE IDAHO SAID NET INCOME GREW IN THE FOURTH QUARTER BUT ONETIME CHARGES FROM DEBT REDEMPTION AND AN ACCOUNTING CHANGE CAUSED THE COMPANY TO POST A LOSS FOR THE YEAR NET INCREASED 21 TO 69 MILLION OR 23 CENTS A SHARE FROM 57 MILLION OR 19 CENTS A SHARE A YEAR EARLIER REVENUE GREW 20 TO 5452 MILLION FROM 456 MILLION THE ENGINEERING AND CONSTRUCTION CONCERN SAID ITS RAIL SEGMENT HAD A RECORD QUARTER IN EARNINGS AND ENDED THE YEAR WITH A BACKLOG OF 1 BILLION IN PUBLIC TRANSPORTATION ORDERS BUT A 17 MILLION ACCOUNTING CHANGE FOR POSTRETIREMENT HEALTH CARE AND A 31 MILLION DEBT REDEMPTION COST RECORDED EARLIER IN THE YEAR CAUSED A YEAREND LOSS BEFORE THE CHARGES PROFIT FOR THE YEAR WAS 134 MILLION OR 44 CENTS A SHARE THE LOSS FOR THE YEAR TOTALED 7 MILLION OR 23 CENTS A SHARE COMPARED WITH NET INCOME OF 355 MILLION OR 124 A SHARE THE PREVIOUS YEAR REVENUE ROSE 28 TO 199 BILLION FROM 155 BILLION 9302080018 930208 REVIEW & OUTLOOK EDITORIAL JOB DESTRUCTION BILL NO 1 GRIDLOCK I THINK IS REALLY OVER SENATOR TED KENNEDY GUSHED AS PRESIDENT CLINTON SIGNED THE FAMILY LEAVE BILL INTO LAW THIS IS REALLY GOVERNMENT AT ITS BEST POSSIBLY SO BUT OUR READING OF GOVERNMENT AT ITS BEST PRODUCES THE FOLLOWING RESULTS JOBS THAT WOULD HAVE BEEN CREATED WON'T BE COMPANIES NEAR THE BILL'S 50EMPLOYEE THRESHOLD WILL DECIDE NOT TO EXPAND AND EMPLOYEES WHO WOULD HAVE BEEN HIRED WILL BE PASSED OVER IN FAVOR OF OTHERS LESS LIKELY TO DEMAND LEAVE THE REASONS FOR THIS NODOUBT UNINTENDED DESTRUCTION OF JOBS ARE LAID OUT IN A 1991 GALLUP SURVEY OF 1000 SMALL EMPLOYERS CONDUCTED FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS SOME 93 OF SURVEYED FIRMS REPORTED THAT THEY ALREADY OFFERED SOME FORM OF FAMILY OR MEDICAL LEAVE AND 94 HAD GRANTED THE LAST REQUEST FOR LEAVE THE AVERAGE ABSENCE LASTED 15 WEEKS BUT THE SURVEY MAKES CLEAR THAT MAKING UNPAID LEAVE MANDATORY WILL BOOMERANG THE LAW REQUIRES EMPLOYERS TO PAY THE FULL HEALTH INSURANCE COSTS OF ONLEAVE WORKERS AS WELL AS THE UNEMPLOYMENT AND TRAINING COSTS OF ANY REPLACEMENTS WHO MUST BE LET GO WHEN THE WORKER RETURNS RELIABLE ESTIMATES PUT SUCH COSTS AT 2000 A WORKER ON LEAVE HALF THE BUSINESSES SURVEYED BY GALLUP SAID THEY WOULD HESITATE TO HIRE YOUNG WOMEN UNDER THE NEW LAW AND WOULD LIKELY CUT DOWN ON LOWSKILLED JOBS MORE THAN HALF SAID THEY WOULD TRIM OTHER EMPLOYEE BENEFITS TO PAY FOR MANDATED LEAVE THAT LAST FINDING SQUARES WITH THE RESULTS OF A RECENT STUDY BY THE RESPECTED NATIONAL BUREAU OF ECONOMIC RESEARCH THE STUDY CONCLUDED THAT CERTAIN STATE MANDATES FOR HEALTH BENEFITS WERE FINANCED ENTIRELY BY REDUCTIONS IN THE WAGES OF THE WORKERS WHO WERE COVERED INTERESTINGLY JONATHAN GRUBER'S STUDY FOUND THE TOTAL HOURS WORKED DIDN'T CHANGE BECAUSE THE WORKERS IN EFFECT PAID FOR THEIR OWN BENEFITS THE REALWORLD REASONS WHY EVEN GENEROUS EMPLOYERS RESISTED A FAMILY LEAVE LAW WERE SUMMED UP BY THE HEAD OF AN ARCHITECTURAL FIRM IN CALIFORNIA HE TOLD GALLUP THAT 60 OF HIS EMPLOYEES WERE UNDER 30 YEARS OF AGE OUR ENTIRE PROGRAM FOR YOUNG PEOPLE WILL COME TO A ROARING HALT IF THIS LAW PASSES HE SAID OBVIOUSLY ALL INTERVIEWING AND HIRING WOULD BE FROM THE 40 YEARS AND OLDER GROUP MIT ECONOMIST DAVID BIRCH HAS FOUND THAT BUSINESS MANDATES IN CANADA HAVE MADE MIDDLESIZED FIRMS THERE ALMOST EXTINCT THUS CANADA'S ECONOMY RESEMBLES AN HOURGLASS A LOT OF LARGE FIRMS AND MANY SMALL FIRMS AND FEW INBETWEEN WHICH MAY BE ONE REASON CANADA HAS HIGHER STRUCTURAL UNEMPLOYMENT THAN THE US NOW NEEDLESS TO SAY CONGRESS HAS EFFECTIVELY EXEMPTED ITSELF FROM THE NEW FAMILY LEAVE LAW AS WITH THE CIVIL RIGHTS ACT AND THE AMERICANS WITH DISABILITIES ACT CONGRESSIONAL EMPLOYEES CANNOT SUE FOR DAMAGES IN A FEDERAL COURT SOCALLED ENFORCEMENT OF THE ACT IN THE HOUSE HAS BEEN LEFT TO AN OFFICE OF FAIR EMPLOYMENT PRACTICES WHICH IS MADE UP OF SURPRISE HOUSE MEMBERS ALL OF ITS MEETINGS ARE CLOSED AND NONE OF THE EVIDENCE IT CONSIDERS IS EVER MADE PUBLIC IN EFFECT THE HOUSE SERVES AS PROSECUTOR JUDGE AND JURY FOR ANY COMPLAINTS FILED BY ITS MORE THAN 12000 EMPLOYEES IMAGINE IF A FORTUNE 500 COMPANY TRIED SOMETHING LIKE THIS ILLINOIS REP HARRIS FAWELL SOUGHT TO STRIKE CONGRESS'S EXEMPTION FROM THE FAMILY LEAVE BILL BUT THE LABOR COMMITTEE DISMISSED HIS IDEA DURING THE DEBATE HE SUGGESTED CONGRESS WOULD EXEMPT ITSELF FROM THE LAW OF GRAVITY IF IT COULD NO ONE DISAGREED WHEN HE FINALLY GOT A FLOOR VOTE ON HIS AMENDMENT MAJORITY LEADER RICHARD GEPHARDT OPPOSED IT I DO NOT THINK THAT WE SHOULD BE TAKING THIS UP CHANGING SUCH AN IMPORTANT FEATURE OF OUR ORGANIZATION WHICH HAS BEEN IN PLACE FOR SO LONG PROBABLY SIMILAR ARGUMENTS WERE MADE IN SUPPORT OF THE DIVINE RIGHT OF KINGS THE HOUSE FINALLY VOTED 253 TO 175 TO RETAIN ITS EXEMPTION FROM JUDICIAL ENFORCEMENT ALL BUT ONE OF THE 63 DEMOCRATIC FRESHMEN REFORMERS VOTED TO REMAIN ABOVE THE LAW YES INDEED GOVERNMENT AT ITS BEST 9302080017 930208 BUSINESS BRIEF CIMENTS FRANCAIS SA LOSS FOR 1992 IS ESTIMATED AT AS HIGH AS 179 MILLION LOSSES FOR FRENCH BUILDING MATERIALS GROUP CIMENTS FRANCAIS SA PROBABLY WERE AS MUCH AS ONE BILLION FRENCH FRANCS 179 MILLION IN 1992 THE COMPANY CONFIRMED THE GROUP ALREADY HAD ANNOUNCED A 740 MILLIONFRANC LOSS FOR THE FIRST HALF AFTER TAKING PROVISIONS FOR LOSSES ON UNAUTHORIZED OFFBOOKS PORTFOLIO OPERATIONS THAT WERE DISCOVERED AFTER THE SALE OF A CONTROLLING STAKE IN THE COMPANY TO ITALY'S ITALCEMENTI FABBRICHE RIUNITE CEMENTO SPA AND MEDIOBANCA CIMENTS FRANCAIS HAS ALSO SAID IT RAISED A TOTAL OF MORE THAN 600 MILLION FRANCS FROM ASSET SALES IN THE SECOND HALF IN 1991 CIMENTS FRANCAIS' NET GROUP SHARE OF PROFIT FELL 59 TO 401 MILLION FRANCS FROM 980 MILLION A YEAR EARLIER THE IRREGULARITIES AND THE RESULTING FINANCIAL LIABILITIES FORCED CIMENTS FRANCAIS'S FORMER LEAD SHAREHOLDER CIE FINANCIERE DE PARIBAS TO GIVE BACK A PORTION OF THE PURCHASE PRICE TO ITALCEMENTI 9302080016 930208 INTERNATIONAL WASHINGTON INSIGHT DEAL TO REPLACE US SOLDIERS IN SOMALIA WITH UN FORCES IS SAID TO BE NEAR BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WANTS TO BRING US TROOPS HOME FROM SOMALIA HE MAY BE ABLE TO DO THAT SOON AFTER MONTHS OF WRANGLING WITH THE UNITED NATIONS US OFFICIALS SAY THEY BELIEVE THEY ARE CLOSE TO A DEAL TO REPLACE THE USLED INTERNATIONAL FORCE OF 35000 PEACEMAKING SOLDIERS WITH A SMALLER BUT STILL ASSERTIVE AND WELLARMED FORCE LED BY THE UN IF AN AGREEMENT IS REACHED OFFICALS HOPE THE BULK OF THE 21000 US TROOPS COULD BE OUT OF SOMALIA AS EARLY AS MIDMARCH THE DEAL WOULD REPRESENT A SERIOUS CONCESSION BY THE STRONGWILLED UN SECRETARYGENERAL BOUTROS BOUTROSGHALI MORE IMPORTANT IT WOULD MARK AN IMPORTANT EVOLUTION FROM THE UN'S TRADITIONALLY MORE PASSIVE PEACEKEEPING ROLE HOW THE UN PERFORMS WILL BE A TEST OF WHETHER IT CAN HANDLE EVEN TOUGHER CHALLENGES INCLUDING THE CONFLICT IN BOSNIA UNTIL NOW MR BOUTROSGHALI HAS INSISTED THAT SOMALIA BE FULLY PACIFIED BEFORE UN PEACEKEEPERS TAKE OVER THAT COULD TAKE MONTHS IF NOT LONGER THE AMERICANS DON'T WANT TO WAIT THE US HAS SWEETENED THE POT BY OFFERING TO KEEP SEVERAL THOUSAND US COMBAT TROOPS ON THE GROUND FOR SEVERAL MONTHS WHILE THE TRANSFER TAKES PLACE THE US ALSO WILL PROVIDE LOGISTICAL AND COMMUNICATIONS SUPPORT AND WILL KEEP A MARINE SWAT TEAM OFFSHORE INDEFINITELY FOR EMERGENCIES IF THE UN FAILS SPECTACULARLY THE US WILL HAVE TO DECIDE WHETHER TO GO BACK IN THE US ALSO IS LOBBYING THE MORE EXPERIENCED AND WELLARMED MEMBERS OF THE CURRENT COALITION INCLUDING ITALY CANADA AND FRANCE WHICH ALREADY HAVE NEARLY 7000 TROOPS IN SOMALIA TO TRANSFER THEIR FORCES TO THE UN OPERATION OUR IDEA IS THAT THEY'LL TAKE OFF WHATEVER VERSION OF KHAKI HAT THEY'RE WEARING NOW AND REPLACE IT WITH A UN BLUE HELMET SAYS THE US DIPLOMAT THE CHOICE WILL BE RISKY FOR THE UN SOMALIA IS STILL A DANGEROUS PLACE AND UN FORCES WILL PROBABLY END UP KILLING AND BEING KILLED THEY ARE LIKELY TO FACE AN EARLY CHALLENGE FROM SOMALI WARLORDS AND THEIR THUGS THE WARLORDS HAVE GIVEN THE US FORCES A WIDE BERTH BUT THEY HOLD THE UN IN CONTEMPT BECAUSE OF ITS EARLIER BUNGLED EFFORTS THE UN PEACEKEEPING BUREAUCRACY HAS NO EXPERIENCE IN RUNNING SUCH A MISSION THERE IS A SUBSTANTIAL RISK OF FAILURE SAYS JOHN BOLTON THE BUSH ADMINISTRATION'S ASSISTANT SECRETARY OF STATE FOR INTERNATIONAL ORGANIZATIONS BUT THIS TYPE OF MISSION IS CLEARLY WHERE THE UN HAS TO GO SOMALIA BOSNIA NONE OF THESE IS A PASSIVE EXERCISE PARADOXICALLY THE US ISN'T WORRIED ABOUT THE SLOW PACE OF POLITICAL NEGOTIATIONS IN SOMALIA FIGHTING BETWEEN WARLORDS LAST WEEK SCUTTLED A PRELIMINARY ROUND OF PEACE TALKS I WOULDN'T LOSE ANY SLEEP IF THOSE TALKS ARE POSTPONED SAYS CHESTER CROCKER WHO RAN AFRICA POLICY IN THE REAGAN STATE DEPARTMENT IF YOU GET AN AGREEMENT NOW IT WOULD ONLY BE BETWEEN THE WARLORDS AND THEY AREN'T VERY ATTRACTIVE PEOPLE HE SAYS MR CROCKER SAYS THE US SPECIAL ENVOY VETERAN DIPLOMAT ROBERT OAKLEY MAY EVEN TRY TO SLOW DOWN THE TALKS WHILE THE WARLORDS' POWER TO TERRORIZE THE COUNTRY IS LEECHED AWAY AND OTHER MOREREASONABLE LEADERS COME FORWARD WITH THE RETURN OF SOME ORDER IN RECENT WEEKS SOMALI INTELLECTUALS EXILES RELIGIOUS LEADERS AND ELDERS ARE REDISCOVERING THEIR VOICES THE PROCESS OF REBUILDING SOMALI CIVIL SOCIETY FROM THE GROUND UP COULD TAKE MONTHS OR EVEN YEARS AND LIKE HIS MILITARY COUNTERPARTS AMBASSADOR OAKLEY IS EAGER TO HAND OVER HIS BRIEF TO THE UN PAULINE BAKER OF THE ASPEN INSTITUTE A THINK TANK WARNS THAT THE UN MAY NOT BE UP TO THE JOB THE UN HAS SUCH A POOR REPUTATION IN SOMALIA AND IT'S ALREADY OVERBURDENED SHE SAYS SHE SUGGESTS THE US ORGANIZE A CONTACT GROUP OF AFRICAN DEMOCRACIES MUCH LIKE THE ONE THAT HELPED GUIDE THE ESTABLISHMENT OF DEMOCRACY IN NAMIBIA TO MANAGE NEGOTIATIONS AND OVERSEE THE REBUILDING OF SOMALIA THE BIGGEST DANGER MS BAKER WARNS IS THAT EVERYONE WILL LOSE INTEREST ONCE THE AMERICANS GO HOME WITHOUT STRONG DIPLOMATIC AND ADMINISTRATIVE LEADERSHIP AS WELL AS A STRONG PEACEKEEPING FORCE SOMALIA COULD EASILY SLIP BACK INTO CHAOS 9302080015 930208 TECHNOLOGY & MEDICINE EPA HEAD QUITS INCINERATOR CASE OVER SPOUSE'S LINK BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY SAID SHE IS WITHDRAWING FROM A DISPUTE OVER AN OHIO INCINERATOR AFTER FINDING THAT HER HUSBAND'S EMPLOYER IS INVOLVED IN THE CASE THE EPA SAID ADMINISTRATOR CAROL BROWNER WAS MEETING FRIDAY WITH ACTIVISTS OPPOSED TO THE EAST LIVERPOOL OHIO INCINERATOR WHEN SHE LEARNED THAT ONE OF THE LITIGANTS IN THE CASE IS CITIZEN ACTION A PUBLICINTEREST LOBBYING GROUP THAT EMPLOYS HER HUSBAND MICHAEL PODHOZER UPON LEARNING OF CITIZEN ACTION'S INVOLVEMENT SHE STOPPED THE MEETING THE EPA SAID THE INCINERATOR IS OWNED BY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL LTD SWITZERLAND FOR MS BROWNER THE RECUSAL COULD BE A GODSEND VICE PRESIDENT ALBERT GORE SAID IN DECEMBER THAT THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE INCINERATOR TO CONDUCT A TEST BURN UNTIL CERTAIN QUESTIONS WERE ANSWERED ABOUT THE PLANT'S SAFETY AND ABOUT THE PROCESS BY WHICH IT RECEIVED CLEARANCE FROM THE EPA THE BUSH ADMINISTRATION APPROVED THE TEST BURN SHORTLY BEFORE LEAVING OFFICE GREENPEACE THE ENVIRONMENTAL GROUP IMMEDIATELY OBTAINED A TEMPORARY INJUNCTION AGAINST THE TEST BURN AND THE EPA IS SET TO STATE ITS POSITION ON THE MATTER THIS WEEK AT A FEDERAL HEARING IN CLEVELAND THE INCINERATOR HAS BECOME THE FIRST ITEM ON THE NEW EPA ADMINISTRATOR'S AGENDA WELL BEFORE MS BROWNER APPEARS READY TO DEAL WITH THE COMPLEX POLITICAL AND TECHNICAL ISSUES SURROUNDING IT SHE HAS NOT YET STATED A POSITION ON THE MATTER OTHER THAN TO REPEAT ADVICE FROM JUSTICE DEPARTMENT ATTORNEYS THAT THE EPA LACKS LEGAL AUTHORITY TO STOP THE TEST BURN IN LIGHT OF ITS PREVIOUS APPROVAL PRIOR TO FRIDAY'S MEETING MS BROWNER PLEDGED IN A LETTER TO EPA EMPLOYEES THAT SHE WOULD RECUSE HERSELF FROM ANY MATTER INVOLVING A SPECIFIC PARTY OR PARTIES WITH RESPECT TO WHICH CITIZEN ACTION MAKS A COMMUNICATION BEFORE EPA MR PODHOZER IS HEALTHCARE SPECIALIST AT CITIZEN ACTION AND MS BROWNER HERSELF WORKED FOR CITIZEN ACTION IN THE MID1980S IN ADDITION MS BROWNER WROTE MR PODHOZER WILL RECUSE HIMSELF FROM ENVIRONMENTAL ISSUES AT CITIZEN ACTION IN THE LETTER MS BROWNER SAID THE RECUSAL DOES NOT EXTEND TO RECEIVING OR CONSIDERING THE COMMENTS OF CITIZEN ACTION ON GENERAL RULEMAKING POLICY MATTERS AND LEGISLATIVE INITIATIVES AN EPA SPOKESMAN SAID IT IS UNLIKELY THAT MS BROWNER'S TIES TO CITIZEN ACTION WILL REQUIRE MANY RECUSALS IN THE FUTURE CAROL BROWNER THE HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY WITHDREW FROM A CASE IN WHICH A LETTER TO THE CLINTON ADMINISTRATION WAS SIGNED BY AN OFFICIAL OF CITIZEN ACTION WHICH EMPLOYS HER HUSBAND IN AN ARTICLE MONDAY IT WAS INCORRECTLY STATED THAT CITIZEN ACTION WAS A LITIGANT IN THE CASE WHICH INVOLVES AN INCINERATOR IN EAST LIVERPOOL OHIO IN THAT ARTICLE THE NAME OF MS BROWNER'S HUSBAND MICHAEL PODHORZER WAS MISSPELLED 9302080014 930208 LAW LEGAL BEAT COURTS GIVE THE MENTALLY DISABLED MIXED SIGNALS ON LEGAL TREATMENT BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL CAN THE MENTALLY RETARDED BE GUARANTEED EQUAL RIGHTS AND SPECIAL PROTECTION AT THE SAME TIME THE QUESTION IS CONFRONTING COURTS THROUGHOUT THE NATION AND FORCING JUDGES AND JURIES INTO A DELICATE BALANCING ACT WITH RESULTS THAT SOMETIMES APPEAR LOGICALLY INCONSISTENT ON ONE HAND STATE AND FEDERAL LAWS INCLUDING THE AMERICANS WITH DISABILITIES ACT ARE INCREASINGLY PROTECTING THE RIGHT OF THE RETARDED TO ATTEND MAINSTREAM SCHOOLS HOLD JOBS VOTE LIVE INDEPENDENTLY ENGAGE IN SEX AND MARRY ON THE OTHER HAND SOME OF THE SAME PEOPLE HAVE BEEN FOUND INCOMPETENT TO RAISE CHILDREN OR ACCEPT THE CONSEQUENCES OF THEIR ACTIONS IN CRIMINAL CASES AS ALLEGED VICTIMS OR PERPETRATORS THE LAW IS SENDING MIXED MESSAGES ABOUT PERCEPTIONS OF PEOPLE WITH DISABILITIES CONCLUDES PETER DAVID BLANCK A PROFESSOR AT THE UNIVERSITY OF IOWA COLLEGE OF LAW LAST WEEK A RULING AND DISSENT IN AN IOWA CASE REFLECTED THE CONFLICTING PERSPECTIVES TWO MEMBERS OF A THREEJUDGE APPELLATE PANEL RULED THAT A RETARDED COUPLE HAD TO YIELD CUSTODY OF THEIR SEVERELY DISABLED CHILD BECAUSE OF CONCERNS ABOUT THE INFANT'S WELFARE THE MAJORITY SAID THE TWOYEAROLD BOY BRAINDAMAGED AND PHYSICALLY FRAGILE WOULD BE AT GREAT RISK TO HIS LIFE IF LEFT IN THE CARE OF HIS PARENTS ACCORDING TO WITNESSES THE PARENTS WERE UNABLE TO OPERATE A MONITOR TO DETECT WHEN THE CHILD HAD BREATHING DIFFICULTIES OR TO PERFORM ROUTINE CLEANING AND FEEDING BUT THE THIRD JUDGE PROTESTED SHARPLY WRITING I HOPE SOMEDAY WE WILL SEE IT IS AS IMPORTANT TO ASSIST THE HANDICAPPED IN PARENTING THEIR CHILDREN AS IT IS TO PROVIDE PHYSICAL ACCOMMODATIONS SUCH AS PARKING ETC FOR THE HANDICAPPED THIS WEEK IN GLEN RIDGE NJ THE CONFLICT BETWEEN EQUAL RIGHTS AND SPECIAL TREATMENT WILL BE PLAYED OUT IN A DIFFERENT CONTEXT IN THAT CASE FOUR DEFENDANTS ARE CHARGED WITH DRAWING A MILDLY RETARDED 17YEAROLD WOMAN INTO DEGRADING SEX ACTS IN CLOSING ARGUMENTS TODAY THE PROSECUTION IS EXPECTED TO RELY HEAVILY ON A TWOYEAROLD STATE LAW THAT PROHIBITS SEXUAL CONTACT WITH THE MENTALLY DEFECTIVE THAT LAW HOLDS DEFENDANTS CULPABLE IF THEY WERE AWARE OR SHOULD HAVE KNOWN THAT THE ACCUSER WAS MENTALLY DISABLED THE DEFENSE IS EXPECTED TO ADOPT THE EQUALRIGHTS ARGUMENT THAT THE YOUNG WOMAN SHOULDN'T BE PROTECTED BY THE LAW JUST BECAUSE SHE IS RETARDED THE LAWYERS SAY HER INDIVIDUAL HISTORY AND TESTIMONY SHOW SHE IS CAPABLE OF CONSENT AND IN FACT FREELY ENGAGED IN THE ACTIVITIES WITH THE DEFENDANTS THE CASE IS EXPECTED TO REACH THE JURY EARLY NEXT WEEK IF ANY PATTERN HAS EMERGED FROM THE WIDE RANGE OF CASES ON THESE ISSUES IT'S THIS IN CRIMINAL CASES THE RETARDED SHOULD GET SPECIAL PROTECTION BECAUSE OTHERWISE THEY WOULD BE SUBJECT TO EXPLOITATION HOWEVER IN CIVIL MATTERS SUCH AS THOSE INVOLVING THE PERSON'S RIGHT TO LIVE OUTSIDE AN INSTITUTION AND HAVE ACCESS TO AN EDUCATION RETARDED PEOPLE SHOULD BE TREATED MUCH LIKE ANYONE ELSE BUT THE CASES DON'T ALWAYS FOLLOW THIS PATTERN IN PART BECAUSE LAWYERS AND OTHER ADVOCATES FOR THE RETARDED ARE DIVIDED ABOUT THE BEST APPROACH PARTICULARLY IN CIVIL DISPUTES SOME SAY VIRTUALLY ANY SPECIAL TREATMENT FURTHER BRANDS THE RETARDED AS INCAPABLE OF HANDLING IMPORTANT RESPONSIBILITIES AND AS A RESULT SPAWNS OVERPROTECTIVE POLICIES THAT STRIP AWAY RIGHTS OTHERS ARGUE THAT IN CERTAIN SITUATIONS THE ONLY WAY TO BE FAIR TO THE MENTALLY DISABLED IS TO CARVE OUT EXCEPTIONS FOR THEM LEONARD RUBENSTEIN DIRECTOR OF THE MENTAL HEALTH LAW PROJECT IN WASHINGTON DC SAYS THE COURTS SHOULD STRIVE FOR A MIDDLE GROUND IN WHICH YOU DON'T REFUSE TO RECOGNIZE THE DIFFERENCES BUT SEEK REASONABLE ACCOMMODATIONS COMPLICATING THE ISSUES INVOLVING THE MENTALLY DISABLED IS THE FREQUENT SPLIT BETWEEN ADVOCATES AND PARENTS OF RETARDED ADULTS PARENTS MORE OFTEN SEEK TO CONTINUE TREATING THEIR ADULT OFFSPRING AS CHILDREN LAWYERS SAY WHILE SOME OF THE ADVOCATES ARGUE THAT MENTALLY DISABLED ADULTS SHOULD BE AFFORDED FAR GREATER INDIVIDUAL RIGHTS THAN CHILDREN RECEIVE NEXT MONTH THE US SUPREME COURT WILL ENTER THE FRAY THE CASE IT WILL HEAR RAISES THE QUESTION AMONG OTHERS OF WHETHER PARENTS HAVE THE RIGHT TO PRESENT EVIDENCE AND WITNESSES IN HEARINGS OVER WHETHER TO COMMIT THEIR ADULT OFFSPRING TO INSTITUTIONS IN THE CASE A FEDERAL APPEALS COURT HAS REJECTED A KENTUCKY LAW PERMITTING SUCH EXPANSIVE PARENTAL PARTICIPATION A RULING THAT ALLOWS THE ADULT CHILDREN TO PUT FORTH THEIR OWN VIEWS ON INSTITUTIONALIZATION OR GET AN ATTORNEY OR ADVOCATE TO DO SO THE STATE IS APPEALING THE DECISION RON MARSTIN AN ATTORNEY WITH THE LOUISVILLE LEGAL AID SOCIETY WHICH REPRESENTS THE MENTALLY RETARDED ADULTS SAYS THE KEY ISSUE IS WHETHER ADULTS FACING COMMITMENT SHOULD BE PREJUDGED ON THE PRESUMPTION THAT THEIR PARENTS AND GUARDIANS KNOW WHAT IS BEST FOR THEM VOICE OF THE RETARDED A PARENTS' GROUP BASED IN CHICAGO HAS FILED A BRIEF IN SUPPORT OF KENTUCKY'S APPEAL WILLIAM F SHERMAN AN ATTORNEY FOR THE VOICE SAYS THE PARENTS OF SEVERELY IMPAIRED MENTALLY RETARDED CHILDREN HAVE SHOULDERED THE DIFFICULT BURDEN OF CARE FOR DECADES SO THEY HAVE KEEN PERCEPTION AS TO THEIR CHILDREN'S LIMITATIONS AND DESERVE RIGHTS EQUAL TO THEIR CHILDREN IN COMMITMENT HEARINGS THERE'S LITTLE DEBATE THOUGH AMONG ADVOCATES AND PARENTS ABOUT PROPER TREATMENT OF THE RETARDED IN THE CRIMINAL JUSTICE SYSTEM WHICH IS WIDELY PERCEIVED AS HOSTILE TO THE DISABLED DESPITE NEW EFFORTS TO ADDRESS THEIR SPECIAL CIRCUMSTANCES DR ALAN ABESON EXECUTIVE DIRECTOR OF THE ARC AN ADVOCACY GROUP SAYS THE MENTALLY DISABLED WILL NEVER BE TREATED FAIRLY NEVER GET EQUALITY IN THAT SYSTEM ADVOCATES SAY LAWENFORCEMENT OFFICIALS TYPICALLY FAIL TO FOLLOW UP ON COMPLAINTS FROM THE RETARDED ABOUT PHYSICAL AND SEXUAL ABUSE WHILE MANY CRIMINALDEFENSE ATTORNEYS DON'T EVEN KNOW THEIR CLIENTS ARE MENTALLY RETARDED IN ONE WIDELY ACKNOWLEDGED EXAMPLE OF SYSTEMATIC INDIFFERENCE MENTALLY DISABLED PEOPLE USED AS UNWITTING DRUG COURIERS IN WASHINGTON DC HAVE BEEN HIT RECENTLY WITH TOUGH PENALTIES BECAUSE FEDERAL GUIDELINES GIVE JUDGES NO DISCRETION TO CONSIDER EXTENUATING CIRCUMSTANCES SUCH ADVOCATES AS JAMES W ELLIS A PROFESSOR AT UNIVERSITY OF NEW MEXICO LAW SCHOOL ARGUE THAT THE MENTAL CAPACITY OF A DEFENDANT SHOULD BE CONSIDERED A MITIGATING FACTOR IN ALL CRIMES AND THAT NO MENTALLY RETARDED DEFENDANT SHOULD BE EXECUTED BECAUSE MENTAL RETARDATION ALWAYS INVOLVES A SUBSTANTIAL IMPAIRMENT THAT REDUCES A DEFENDANT'S LEVEL OF BLAMEWORTHINESS AND MORAL CULPABILITY BUT THE US SUPREME COURT IN THE 1989 CASE OF PENRAY VS LYNAUGH DECLINED TO IMPOSE A BAN ON EXECUTIONS FOR MENTALLY RETARDED DEFENDANTS AND LEFT IT UP TO THE STATES TO BAN SUCH EXECUTIONS THE COURT DID RULE THOUGH THAT STATES MUST ALLOW DEATH PENALTY JURIES TO WEIGH MENTAL RETARDATION AS A MITIGATING CIRCUMSTANCE THEN THERE'S THE TROUBLING CASE OF APPARENT CRIME VICTIMS SUCH AS THE ONE IN NEW JERSEY TESTIMONY HAS PRESENTED HER BOTH AS SEXUALLY INTERESTED AND AGGRESSIVE AND AS A DUPE OF SADISTIC ATTACKERS HER OWN TESTIMONY HAS PROVEN INCONSISTENT ON THE QUESTION OF CONSENT HER DEFICIENCIES AS A WITNESS ALONE REFLECT THE DIFFICULTY SUCH A PERSON MAY HAVE GETTING JUSTICE IN AN ADVERSARIAL COURT SYSTEM YET ULTIMATELY THE JURY'S DECISION MAY REST LESS ON WHETHER THEY BELIEVE SHE SAID YES THAN ON WHETHER SHE WAS TRULY CAPABLE OF SAYING NO MORE THAN THREE YEARS AFTER WINNING THE CONVICTION OF TWO FORMER OFFICERS OF SUNRISE SAVINGS & LOAN ASSOCIATION THE JUSTICE DEPARTMENT HAS OBTAINED AN INDICTMENT AGAINST FOUR OF THE FAILED THRIFT'S ATTORNEYS AND ANOTHER FORMER OFFICIAL THREE OF THE LAWYERS INDICTED FRIDAY MICHAEL FOXMAN KALMAN GITOMER AND KENNETH TREADWELL WERE PARTNERS AT THE PHILADELPHIA LAW FIRM BLANK ROME COMISKY & MCCAULEY WHOSE ATTORNEYS HELPED FOUND SUNRISE AND SERVED AS ITS COUNSEL A FOURTH DANA SCHEER WAS AN ASSOCIATE AT THE FIRM NONE OF THOSE INDICTED ARE STILL AT THE FIRM THE FIVE DEFENDANTS WERE CHARGED WITH PARTICIPATING IN A CONSPIRACY IN WHICH BLANK ROME LAWYERS ALLEGEDLY REVIEWED AND PROCESSED 33 MILLION OF SHAM LOANS MADE IN AUGUST 1984 TO BENEFIT TWO DEVELOPERS WHO WERE LARGE CUSTOMERS OF SUNRISE THE INDICTMENT ALSO ALLEGES THAT THE LAWYERS PARTICIPATED IN SUNRISE'S PURCHASE OF LAND FROM THE DEVELOPERS FOR FAR MORE THAN ITS MARKET VALUE ALSO INDICTED WAS FORMER SUNRISE OFFICIAL WILLIAM FRAME WHO WAS A CODEFENDANT IN THE TRIAL THAT RESULTED IN THE 1989 CONVICTION OF SUNRISE'S PRESIDENT AND ONE OF ITS VICE PRESIDENTS MR FRAME SUFFERED A HEART ATTACK DURING THE PROCEEDING AND THE JUDGE DROPPED HIM FROM THE TRIAL PAUL LAZARUS A LAWYER FOR MR SCHEER SAID MY CLIENT NINE YEARS AGO WAS AN ASSOCIATE IN A LAW FIRM AND TO HIS KNOWLEDGE HE DID NOTHING WRONG ROBERT BECERRA A LAWYER WITH THE FIRM THAT REPRESENTS MR FOXMAN SAID HIS CLIENT IS INNOCENT OF THE CHARGES THOMAS PUCCIO WHO REPRESENTS MR GITOMER SAID THE CHARGES ARE UNFOUNDED MR TREADWELL'S LAWYER IRVIN NATHAN SAID THAT AT THE EARLIER TRIAL OF SUNRISE OFFICERS THE SAME PROSECUTOR CALLED MR TREADWELL'S CONDUCT BOTH LEGITIMATE' AND COMMON SENSE' HE GOT IT RIGHT THE FIRST TIME A LAWYER FOR MR FRAME DECLINED TO COMMENT RJ REYNOLDS TOBACCO CO ALLEGED A BLACKMAIL ATTEMPT BY A FORMER COMPANY SCIENTIST AND SOUGHT TO SQUELCH HIS DISCUSSIONS WITH PLAINTIFFS' LAWYERS THE CIGARETTE MAKER HAD FILED A STATECOURT ACTION IN GREENSBORO NC LAST MONTH SEEKING TO STOP ANTHONY V COLUCCI ONCE A TOP RJ REYNOLDS RESEARCHER ON SMOKING AND HEALTH FROM TESTIFYING AGAINST THE COMPANY IN A CIGARETTELIABILITY LAWSUIT IN MISSISSIPPI LAST WEEK RJ REYNOLDS BASED IN WINSTONSALEM NC ADDED A BLACKMAIL ALLEGATION TO ITS FILING THE UNIT OF RJR NABISCO HOLDINGS GROUP INC SAID MR COLUCCI DEMANDED 5 MILLION IN EXCHANGE FOR HIS SILENCE THE COMPANY ALLEGED THAT MR COLUCCI SAID THROUGH HIS LAWYER THAT HE WANTED TO CONSULT FOR RJ REYNOLDS AT A RATE OF 250 AN HOUR AND WANTED 2000 HOURS OF WORK A YEAR FOR THE NEXT 10 YEARS AND IN RETURN PROMISED TO UNDO ANY DAMAGE HE HAD DONE NEITHER MR COLUCCI NOR HIS ATTORNEY RETURNED CALLS SEEKING COMMENT RJ REYNOLDS ASKED THE COURT TO STOP MR COLUCCI FROM EVER DISCUSSING TRADE SECRETS OR ANYTHING RELATED TO TOBACCOCOMPANY LIABILITY WITH PLAINTIFFS' LAWYERS THE MEDIA OR ANYBODY ELSE RJ REYNOLDS WANTS MR COLUCCI TO ALERT THE COMPANY EVERY TIME HE IS CONTACTED BY A PLAINTIFFS' LAWYER AND TO HAND OVER ALL CORRESPONDENCE HE HAS HAD WITH THE LAWYERS ON WEDNESDAY A JUDGE TEMPORARILY GRANTED RJ REYNOLDS'S REQUEST TO BAR MR COLUCCI FROM TALKING TO PLAINTIFFS' LAWYERS IN THE MISSISSIPPI LIABILITY SUIT THE JUDGE HASN'T DECIDED WHETHER TO MAKE THE RESTRAINING ORDER PERMANENT MR COLUCCI WORKED OFF AND ON FOR RJ REYNOLDS AS A SCIENTIST AND LITIGATION CONSULTANT SINCE 1967 HE SEVERED RELATIONS WITH THE COMPANY IN MARCH 1992 BEFORE LEAVING HE SIGNED AN AGREEMENT TO KEEP TRADE SECRETS CONFIDENTIAL WHO'S NEWS LUCY REED FORMER US AGENT TO THE IRANUS CLAIMS TRIBUNAL IN THE HAGUE JOINED WASHINGTONBASED ARENT FOX IN ITS NEW YORK OFFICE CHRISTOPHER G BELL A FORMER SENIOR OFFICIAL AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION BECAME OF COUNSEL AT JACKSON LEWIS SCHNITZLER & KRUPMAN IN ITS WASHINGTON OFFICE EDWARD FELSENTHAL AND JUNDA WOO CONTRIBUTED TO THIS COLUMN 9302080013 930208 WHO'S NEWS CHEMED CORP CHEMED CORP CINCINNATI JON D KRAHULIK 46 YEARS OLD AN ASSOCIATE JUSTICE OF THE SUPREME COURT OF INDIANA AND A DIRECTOR OF CHEMED WAS NAMED VICE CHAIRMAN OF THE BOARD A NEW POSITION IN ADDITION JAMES H DEVLIN 46 VICE PRESIDENT OF CHEMED AND PRESIDENT OF VERATEX CORP A MAKER AND DISTRIBUTOR OF MEDICAL AND DENTAL SUPPLIES THAT CHEMED ACQUIRED IN DECEMBER WAS NAMED A DIRECTOR THE MOVE INCREASES THE BOARD TO 22 MEMBERS CHEMED HAS OPERATIONS IN MEDICAL AND DENTAL PRODUCTS SANITARY MAINTENANCE PRODUCTS DISTRIBUTION PLUMBING AND DRAINCLEANING SERVICES AND OTHER FIELDS 9302080012 930208 EC RESEARCHERS TUNE UP THEIR NOSES IN WAR ON SICK BUILDING SYNDROME BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL DELFT THE NETHERLANDS UNDER A 19 MILLION PROJECT LARGELY FINANCED BY THE EUROPEAN COMMUNITY RESEARCHERS PLAN TO STUDY AIR QUALITY INSIDE OFFICE BUILDINGS IN NINE EUROPEAN NATIONS IN THE NEXT FEW YEARS THEIR GOAL IS TO DEFEAT SICK BUILDING SYNDROME THE TENDENCY OF CERTAIN BUILDINGS TO GIVE PEOPLE HEADACHES EYE IRRITATIONS DIZZINESS AND OTHER SYMPTOMS THIS SYNDROME IDENTIFIED BY SWEDISH SCIENTISTS ABOUT 30 YEARS AGO AFFLICTS 15 TO 20 OF ALL BUILDINGS IN WESTERN EUROPE AND NORTH AMERICA ACCORDING TO A ROUGH ESTIMATE BY JAMES E WOODS A PROFESSOR AT VIRGINIA POLYTECHNIC INSTITUTE IT YIELDS TO NO EASY CURES SCIENTISTS CAN ISOLATE NOXIOUS GASES THEY CAN ANALYZE CHEMICAL COMPOUNDS EMITTED BY PEOPLE COPIERS AND CARPETS AND THEY CAN ESTIMATE VENTILATION NEEDS BUT OFTEN THEY CANNOT EXPLAIN WHY A PARTICULAR BUILDING IS MAKING PEOPLE SICK THERE IS NO SCIENTIFIC INSTRUMENT THAT CAN PREDICT PEOPLE'S REACTION TO AN AIR SAMPLE EXCEPT PERHAPS THE NOSE IN THE MID1980S PROF P OLE FANGER OF THE TECHNICAL UNIVERSITY OF DENMARK BECAME PERSUADED OF THE POWER OF THE PROBOSCIS HE PUT HIS OWN NOSE TO THE TEST TUBE AND DEVISED A WAY TO QUANTIFY WHAT THE NOSE KNOWS ABOUT THE AIR IT IS INHALING SINCE THEN PROF FANGER HAS BEEN SELLING TO OTHER SCIENTISTS WHAT INITIALLY STRUCK SOME OF THEM AS A WACKY IDEA NOW THE EC PROJECT WILL TEST THE SNIFFING PROCEDURES DEVELOPED BY DR FANGER AND HIS DISCIPLES ONE OF THOSE DISCIPLES IS PHILOMENA M BLUYSSEN A DUTCH WOMAN WHO IS COORDINATING THE PROJECT AT AGE 29 DR BLUYSSEN IS A BIT OF A STAR IN THE ARCANE WORLD OF INDOOR AIR QUALITY OR IAQ SHE PAINTS HER FINGERNAILS VIOLET AND WEARS BLUE JEANS AND COWBOY BOOTS RATHER THAN THE USUAL WHITE LAB GARB ONE OF HER BOSSES AT THE BUILDING RESEARCH CENTER IN DELFT RECENTLY DUBBED HER THE MILLIONGUILDER WOMAN BY VIRTUE OF THE BIG DOLLOP OF EC FUNDING AND HER SERVICES AS A SNIFFING SLEUTH ARE IN DEMAND A DUTCH SCHOOL FOR INSTANCE ASKED HER TO FIND THE CAUSE OF A STUBBORN STENCH AFTER QUIZZING THE BUILDING MANAGER AND LOOKING OVER THE PREMISES SHE TOOK A DEEP BREATH I SAID OK THIS SMELLS LIKE THERE HAS NOT BEEN ENOUGH VENTILATION' DR BLUYSSEN RECALLS SHE SNIFFED THE CARPETING SHE CLIMBED A LADDER TO GET A WHIFF OF THE CEILING PANELS SHE HAD A HOLE DRILLED IN THE WALL TO GET A WAFT OF THE INSULATION DR BLUYSSEN WAS ONTO THE SCENT SHE TOOK SAMPLES OF THE CARPETING AND CEILING PANELS BACK TO HER LAB AND PLACED THEM IN DEVICES SHE CALLS DECIPOLMETERS LARGE GLASS JARS SURMOUNTED WITH A CYLINDER TO ALLOW FOR INTENSIVE SNIFFING AFTER THE DECIPOLMETER TEST THERE WAS NO DOUBT IN HER MIND THE CULPRIT WAS IN THE CARPET DR BLUYSSEN'S ADVICE INSTALL A NEW ONE AT ANOTHER BUILDING WITH BAD BREATH SHE TRACED THE ODOR TO TAR ON THE ROOF OFTEN THE PROBLEM TURNS OUT TO BE TOO MANY PEOPLE CRAMMED INTO A SMALL SPACE POORLY CHOSEN BUILDING MATERIALS OR THE PROXIMITY OF COPIERS AND OTHER AIRDESPOILING OFFICE MACHINERY SOMETIMES IT IS A SIMPLE OVERSIGHT WHEN A COLLEAGUE IN ONE OF THE RESEARCH CENTER'S OWN BUILDINGS COMPLAINED OF A VILE SMELL DR BLUYSSEN TRACKED DOWN A ROTTING PLANT THAT INVESTIGATION WAS FREE BUT USUALLY THE WORK IS FAR MORE COMPLICATED AND CLIENTS PAY ACCORDINGLY DR BLUYSSEN'S MINIMUM CHARGE IS 3000 GUILDERS 1680 A JOB AND SHE HAS BILLED UP TO 100000 GUILDERS FOR A PARTICULARLY COMPLEX ASSIGNMENT INVOLVING QUESTIONNAIRES SURVEYS AND SOPHISTICATED SNIFFING NOW HOWEVER DR BLUYSSEN IS WORKING ON A MUCH LARGER SCALE THE EC'S IAQ AUDIT PROJECT WILL TEST A METHOD SHE HAS DEVISED FOR TRAINING PANELS OF PEOPLE TO SNIFF SCIENTIFICALLY AND RATE THE PERCEIVED AIR QUALITY INSIDE BUILDINGS THESE PANELS WILL SNIFF SIX BUILDINGS IN EACH OF NINE COUNTRIES BRITAIN DENMARK FRANCE GREECE SWITZERLAND NORWAY FINLAND BELGIUM AND THE NETHERLANDS ONCE ALL THE DATA ARE COMPILED DR BLUYSSEN AND HER PARTNERS WILL WRITE A HANDBOOK ON HOW TO INVESTIGATE THE SOURCES OF FOUL AIR SHE HOPES THE RESULTS WILL HELP ARCHITECTS AND BUILDING MANAGERS TO ELIMINATE NEEDLESS SOURCES OF POLLUTION AND TO REVIVE OFFICE DRUDGES WITH PROPERLY VENTILATED AIR TO SERVE ON HER PANELS DR BLUYSSEN ACCEPTS ONLY PEOPLE BETWEEN THE AGES OF 18 AND 30 JUDGING THAT OLDER PEOPLE MIGHT BE PAST THEIR OLFACTORY PEAK EVEN AMONG YOUNG PEOPLE ONLY ABOUT A THIRD PASS HER INITIAL TEST OF ABILITY TO DISTINGUISH AMONG DIFFERING AIR QUALITIES THE DATA THEY INHALE WILL BE EXPRESSED IN OLFS AND DECIPOLS MEASUREMENTS DEVISED BY PROF FANGER AN OLF MEASURES THE STRENGTH OF A SOURCE OF POLLUTION SUCH AS A PERSON A CARPET OR A COPIER THE STANDARD AGAINST WHICH OTHER SOURCES OF POLLUTION ARE MEASURED IS ONE OF THE MAIN OFFENDERS THE HUMAN BEING ONE OLF IS EQUAL TO THE AMOUNT OF BIOEFFLUENTS GIVEN OFF BY A STANDARD PERSON AS DEFINED BY A SAMPLING OF MORE THAN 1000 PEOPLE MADE BY THE DANISH TECHNICAL UNIVERSITY BIOEFFLUENTS DR BLUYSSEN EXPLAINED IN HER 1990 PHD THESIS THAT THEY ORIGINATE FROM THE SKIN INTESTINES AND BREATH A DECIPOL IN TURN IS THE PERCEIVED AIR POLLUTION CAUSED BY A STANDARD PERSON SEATED IN A ROOM AND VENTILATED BY 10 LITERS OF CLEAN AIR PER SECOND TO SOME PEOPLE ALL OF THIS SMELLS A BIT FISHY I JUST DON'T BUY THE WHOLE APPROACH SAYS WILLIAM CAIN A PROFESSOR OF ENVIRONMENTAL HEALTH AND PSYCHOLOGY AT YALE UNIVERSITY DR CAIN AGREES THAT PEOPLE'S NASAL JUDGMENTS HOWEVER SUBJECTIVE CAN BE USED AS ONE WAY OF GAUGING INDOOR AIR POLLUTION ALONG WITH A HOST OF OTHER TESTS FOR DANGEROUS SUBSTANCES BUT DR CAIN THINKS IT IS PREMATURE TO RECOMMEND USING THE FANGER METHOD AS A GUIDELINE FOR VENTILATION NEEDS AS AN EC REPORT DID LAST YEAR THERE IS NO CLEAR WAY TO VERIFY WHETHER THE TRAINED SNIFFERS PRODUCE VALID RESULTS HE SAYS 9302080011 930208 EC TRADE CHIEF MAY FACE CONTRARY US SIR LEON'S FREE TRADE' MAY RUN UP AGAINST FAIR TRADE' BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS SIR LEON BRITTAN THE EUROPEAN COMMUNITY'S NEW TRADE COMMISSIONER IS TILTING AGAINST TRADE BARRIERS ON THREE FRONTS IN THE US WHERE HE WILL MEET US TRADE OFFICIALS THURSDAY HE FACES A NEW ADMINISTRATION WHOSE FIRST SIGNALS ON TRADE POLICY HAVE ANGERED EUROPEAN POLITICIANS AND BUSINESSMEN IN JAPAN HE FACES WHAT SEEMS LIKE AN UNSTOPPABLE EXPORT MACHINE WHOSE TRADE SURPLUSES WITH EUROPE AND THE US ARE SWELLING ONCE AGAIN BUT SIR LEON'S TOUGHEST TRIALS MAY WELL BE AT HOME IN THE EC MEMBER STATES ARE WARY OF HIS EFFORTS TO OPEN THE COMMUNITY UP TO MORE IMPORTS FROM EASTERN EUROPE FRANCE CONTINUES TO CAMPAIGN AGAINST THE TENTATIVE FARMTRADE DEAL PATCHED TOGETHER WITH THE US LATE LAST YEAR IN A FEVERISH ATTEMPT TO AVERT A TRADE WAR AND INTRAEC BATTLES LOOM OVER IMPORTS OF CHINESE SHOES JAPANESE CARS AND A BEWILDERING VARIETY OF OTHER ITEMS ALL LITTLE DISPUTES ASIDE SIR LEON COULD FIND THAT HIS FREETRADE CONVICTIONS ARE OUT OF FASHION AND NO LONGER FIND MUCH RECEPTION AMONG POLICY MAKERS IN THE US AND OTHER INDUSTRIAL POWERS ACADEMICS THESE DAYS TALK ABOUT A WORLD DRIFTING INTO WELLPROTECTED REGIONAL TRADING BLOCS INSTEAD OF A WORLD BUILDING ON THE POSTWORLD WAR II SYSTEM OF MULTILATERAL TRADE AGREEMENTS REACHED GLOBALLY UNDER THE WING OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT ADVISERS TO US PRESIDENT BILL CLINTON TALK ABOUT FAIR TRADE RATHER THAN FREE TRADE AND SEEM EAGER TO USE A BIG STICK AGAINST NATIONS DEEMED INSUFFICIENTLY OPEN TO US GOODS ALREADY SIR LEON IS ACCUSING THE US OF FORSAKING THE MULTILATERAL APPROACH IN FAVOR OF WHAT HE BRANDS AS UNILATERAL BULLYING THE 53YEAROLD SIR LEON A BON VIVANT AND OPERA LOVER ISN'T THE TYPE TO TAKE ON A BULLY IN THE BACK ALLEY BUT AS A LAWYER AND FORMER DEBATING STAR AT CAMBRIDGE UNIVERSITY HE RELISHES ANY CHANCE TO MAKE INTELLECTUAL MINCEMEAT OF THOSE WHO QUESTION HIS FREEMARKET CREED AS AN EC COLLEAGUE DISCOVERED LAST WEEK WHEN HE RASHLY SUGGESTED IN SIR LEON'S PRESENCE THAT RICE SUBSIDIES WERE A GOOD IDEA SIR LEON WHO STUDIED AT YALE UNIVERSITY AS WELL AS CAMBRIDGE ALSO IS A MASTER OF USING THE NEWS MEDIA TO GET ACROSS HIS MESSAGES THAT HABIT NEARLY PROVED HIS UNDOING IN THE MID1980S WHEN HE SERVED AS BRITAIN'S TRADE MINISTER UNDER PRIME MINISTER MARGARET THATCHER DURING A POLITICAL DOGFIGHT OVER THE RESCUE OF THE WESTLAND HELICOPTER COMPANY HE ADMITTED LEAKING A SENSITIVE DOCUMENT TO THE NEWS MEDIA SOON AFTERWARD HE RESIGNED A SELFSACRIFICE THAT HELPED EXTRACT HIS PRIME MINISTER FROM A SCANDAL IT SEEMED LIKE A CONSOLATION PRIZE FOR SIR LEON IN 1989 WHEN THE THATCHER GOVERNMENT PACKED HIM OFF TO BRUSSELS AS ONE OF BRITAIN'S TWO COMMISSIONERS IN HIS FIRST FOUR YEARS ON THE COMMISSION DURING WHICH HE WAS RESPONSIBLE FOR COMPETITION POLICY HE STOUTLY DEFENDED THATCHERITE FREEMARKET VALUES BUT HE ALSO PROVED FAR MORE EAGER TO PURSUE EUROPEAN INTEGRATION THAN HIS FORMER BOSS NOW KNOWN AS LADY THATCHER ARE THEY STILL CHUMS SIR LEON DECLINES TO DISCUSS THE MATTER WHAT IS CLEAR IS THAT WHILE LADY THATCHER SHRILLY CONDEMNS THE COMMUNITY FROM THE SIDELINES SIR LEON WILL EXPLOIT HIS POWERS AS EC TRADE CHIEF FOR ALL THEY ARE WORTH AT A RECENT NEWS CONFERENCE FINDING HE WASN'T INCLUDED AT THE HEAD TABLE WITH OTHER EC GRANDEES SIR LEON ORDERED ANOTHER CHAIR TO BE HOISTED ON STAGE AND INSERTED HIMSELF INTO THE FRONT RANKS DESPITE HIS FORCEFUL WAYS AND SHARP TONGUE HOWEVER SIR LEON OFTEN MANAGES TO CHARM HIS EC COLLEAGUES DURING THE WEEK IN BRUSSELS HE PLIES THE SOCIAL CIRCUIT ON WEEKENDS HE USUALLY RETREATS TO HIS YORKSHIRE COUNTRY HOME IN BRITAIN ONE AIDE SAYS SIR LEON IS THE TYPE WHO CAN QUICKLY GRASP THE ESSENTIALS OF A COMPLEX LEGAL DOCUMENT BUT FORGETS HOW TO GET AN OUTSIDE LINE FROM HIS OFFICE PHONE HE IMPRESSES EVEN THOSE WITH WHOM HE SOMETIMES FIND HIMSELF AT ODDS I THINK HE'LL BE A VERY EFFECTIVE NEGOTIATOR AS EC TRADE COMMISSIONER SAYS JAMES DOBBINS US AMBASSADOR TO THE EC HE'S DECISIVE HE HAS A VERY CLEAR AND COMMITTED VIEW ABOUT TRADE BUT WHEN SIR LEON MEETS US TRADE REPRESENTATIVE MICKEY KANTOR AND OTHER CLINTON OFFICIALS THIS WEEK HE WILL BE MEETING AN ADMINISTRATION THAT HASN'T MADE CLEAR ITS OVERALL PHILOSOPHY ON TRADE EVEN SO IN THE PAST TWO WEEKS THE ADMINISTRATION HAS IMPOSED HEAVY PRELIMINARY ANTIDUMPING DUTIES ON IMPORTS OF STEEL AND THREATENED TO SHUT EC FIRMS OUT OF BIDDING FOR MANY US GOVERNMENT CONTRACTS UNLESS THE EC STOPS GIVING ITS FIRMS CERTAIN ADVANTAGES IN BIDDING FOR EUROPEAN ORDERS OF TELECOMMUNICATION AND ELECTRICALPOWER EQUIPMENT THE US THREAT SO FAR INVOLVES ONLY A SMALL PART OF A VAST GOVERNMENTPROCUREMENT MARKET BUT THE POTENTIAL DAMAGE TO INTERNATIONAL TRADE COULD SPIRAL IF THE FEUD DEGENERATES INTO TITFORTAT RETALIATION WHILE DENOUNCING THE US MOVES AS UNFAIR ARMTWISTING SIR LEON IS TRYING TO HOLD DOWN THE TEMPERATURE LONG ENOUGH TO PURSUE NEGOTIATED SETTLEMENTS RATHER THAN DISCUSSING SPECIFIC RETALIATORY MEASURES HE MERELY SAYS ALL OPTIONS ARE OPEN HE STILL HOPES PRESIDENT CLINTON WILL BASICALLY SUPPORT FREETRADE PRINCIPLES AND IS EAGER TO GIVE THE NEW ADMINISTRATION THE BENEFIT OF THE DOUBT THESE ARE VERY COMPLEX ISSUES SIR LEON SAYS AND I BELIEVE THE NEW US ADMINISTRATION IS ENTITLED TO HAVE TIME TO BREATHE WHILE IT DEVELOPS ITS TRADE POLICY HE SAYS THURSDAY'S MEETING WON'T NECESSARILY PRODUCE IMMEDIATE RESULTS IN RESOLVING USEC TRADE DISPUTES IT IS A CHANCE TO GET ACQUAINTED RATHER THAN A BIGBANG NEGOTIATING SESSION THE EC COMMISSIONER CAN BE EXPECTED TO ARGUE THAT THE BEST WAY TO PROMOTE ECONOMIC RECOVERY WOULD BE TO SETTLE TRADE DISPUTES QUIETLY AND TO PUSH HARDER FOR AN AGREEMENT AT THE LANGUISHING GATT TRADE TALKS IN GENEVA AN ACCORD ON THE BROAD NEW WORLD TRADE CODE BEING DISCUSSED BY GATT COUNTRIES WOULD PRODUCE A BIG IMMEDIATE PSYCHOLOGICAL BOOST FOR BUSINESS AS WELL AS BIG INCREASES IN TRADE FLOWS LATER ON SIR LEON SAYS THE PROBLEM OF THE WORLD ECONOMY IS NOT A LACK OF LIQUIDITY HE ARGUES BUT A LACK OF CONFIDENCE JULIE WOLF IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9302080010 930208 ABREAST OF THE MARKET LOW DIVIDEND YIELD MAY NO LONGER BE THE RED FLAG FOR STOCKS IT ONCE WAS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IS THE LOW DIVIDEND YIELD ON STOCKS THE RED FLAG IT ONCE USED TO BE AFTER DECADES OF STOCK MARKET ANALYSIS MANY STRATEGISTS HAVE CONCLUDED THAT WHEN THE STANDARD & POOR'S 500STOCK INDEX IS YIELDING LESS THAN 3 STOCK PRICES ARE DANGEROUSLY HIGH EVENTUALLY THEY ARGUE THE YIELD RISES EITHER BECAUSE COMPANIES BOOST THEIR DIVIDENDS OR MORE OMINOUSLY STOCK PRICES FALL BACK TO MORE REASONABLE LEVELS THE DIVIDEND YIELD HAS BEEN FLASHING A BRIGHT RED DANGER SIGNAL SINCE LAST OCTOBER AND LAST WEEK'S POWERFUL STOCK MARKET RALLY PUSHED THE DIVIDEND YIELD EVEN FURTHER INTO THE DANGER ZONE WITH THE S&P 500 AT 44893 THE DIVIDEND YIELD NOW STANDS AT 279 WHENEVER THE DIVIDEND YIELD HAS GOTTEN BELOW 285 WE'VE HAD ACCIDENTS' SAYS DAVID SHULMAN CHIEF MARKET STRATEGIST AT SALOMON BROTHERS BUT THERE'S A GROWING TENDENCY AMONG ANALYSTS TO DISMISS THE DIVIDEND YIELD AS A VALUATION TOOL WHEN INVESTORS ARE LOOKING FORWARD TO EARNINGS GROWTH DIVIDEND GROWTH IS NOT SO IMPORTANT SAYS ABBY COHEN STOCK MARKET STRATEGIST AT GOLDMAN SACHS SHE NOTES THAT THE YIELDS ON BONDS AND OTHER COMPETING INVESTMENTS ARE AT THE LOWEST LEVEL IN YEARS THAT MAKES STOCKS EVEN WITH THEIR LOW YIELD VERY ATTRACTIVE SHE SAYS YOU CAN'T LOOK AT DIVIDEND YIELDS IN A VACUUM SHE SAYS THE DIVIDEND YIELD AT 3 WHEN THE TREASURY BILL RATE IS AT 297 IS DIFFERENT THAN WHEN THE DIVIDEND YIELD IS 3 AND THE TBILL RATE IS 12 I DON'T THINK THE DIVIDEND YIELD IS NECCESSARILY A SIGN THAT WE ARE AT THE END OF THE BULL MARKET SAYS PETER L BERNSTEIN WHO HEADS A FINANCIAL CONSULTING FIRM THAT BEARS HIS NAME MR BERNSTEIN SAYS THERE ARE A NUMBER OF DIFFERENCES BETWEEN NOW AND 1987 WHEN A DIVIDEND YIELD OF LESS THAN 3 COINCIDED WITH THE STOCK MARKET CRASH FOR ONE THING INTEREST RATES AND INFLATION WERE RISING BACK IN 1987 WHILE NOW BOTH ARE FALLING HE SAYS WHAT'S MORE THE ECONOMY IS STILL IN THE VERY EARLY STAGES OF A RECOVERY TODAY INVESTORS EXPECT FATTER CORPORATE PROFITS TO PULL STOCK PRICES HIGHER EVEN SCOTT BLACK A VALUE INVESTOR WHO WILL ONLY BUY A STOCK IF HE DEEMS IT CHEAP BY ANY OF SEVERAL MEASURES IGNORES DIVIDEND YIELDS IT'S NOT IMPORTANT SAYS MR BLACK PRESIDENT OF DELPHI MANAGEMENT IN BOSTON HE POINTS TO A NUMBER OF STOCKS THAT HAVE LUSH DIVIDENDS BUT ARE LOUSY PERFORMERS THE MOST NOTABLE IS INTERNATIONAL BUSINESS MACHINES EVEN THOUGH THE COMPUTER MAKER'S STOCK WAS PAYING AN ANNUAL DIVIDEND OF 484 A SHARE LAST YEAR A YIELD OF NEARLY 5 WHEN IBM STOCK WAS TRADING AROUND 100 A SHARE INVESTORS WHO BOUGHT IT AT THAT PRICE FOR THE JUICY DIVIDEND WOULD HAVE WOUND UP LOSING FAR MORE THAN THEY EARNED IBM HAS SINCE SLASHED THE ANNUAL DIVIDEND TO 216 A SHARE AND ITS PRICE HAS DROPPED DRAMATICALLY AT FRIDAY'S CLOSING PRICE OF 52 THE DIVIDEND YIELD ON THE STOCK IS A ROBUST 42 DIVIDENDS ARE ALL WELL AND GOOD BUT IT'S CAPITAL APPRECIATION WE SHOOT FOR SAYS MR BLACK APPARENTLY THAT'S WHAT MORE AND MORE INVESTORS ARE GUNNING FOR TOO THERE'S A NEW BREED OF INVESTOR PLAYING IN THE STOCK MARKET THESE DAYS SAYS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER IT'S NOT THE OLDTIMERS WHO COUNT ON THEIR QUARTERLY DIVIDENDS FOR INCOME HE SAYS RATHER IT'S THE BABY BOOMERS WHO ARE LOOKING TO MAKE A QUICK KILLING IN STOCKS THAT'S WHY MOST OF THEM ARE POURING THEIR MONEY INTO SMALL STOCKS WHICH USUALLY DON'T PAY DIVIDENDS PREFERRING INSTEAD TO REINVEST THOSE FUNDS IN THEIR FASTGROWING BUSINESSES THE MANNER IN WHICH WE TREAT DIVIDEND YIELDS HAS CHANGED DECLARES MS COHEN OF GOLDMAN SACHS BACK IN THE 1950S INVESTORS TOOK A DEFENSIVE APPROACH TO PLAYING IN THE STOCK MARKET DEMANDING THAT STOCKS CARRY HIGHER YIELDS THAN BONDS TO OFFSET THE HIGHER RISK OF STOCKS BY THE LATE 1960S AND 1970S INVESTORS WERE GETTING MORE ACCUSTOMED TO THE MORE VOLATILE NATURE OF THE STOCK MARKET AND WERE LESS INSISTENT ON THE PROTECTION THAT DIVIDENDS OFFERED THE BIG PSYCHOLOGICAL BREAK WITH DIVIDENDS CAME IN THE 1980S MS COHEN SAYS WHEN INVESTORS REALIZED THAT DIVIDEND PAYMENTS WERE BEING TAXED TWICE FIRST WHEN THE COMPANY EARNED THE PROFITS AND AGAIN WHEN THE INVESTOR RECEIVED THE DIVIDEND IN THE '80S INVESTORS TOLD COMPANY MANAGEMENTS TO QUIT PAYING DIVIDENDS SAYS MS COHEN THEY WANTED TO USE THE CASH TO GROW THE COMPANY BUT NOT EVERYONE IS CONVINCED THAT TIMES HAVE CHANGED IT'S JUST THAT INVESTORS HAVE SHORT MEMORIES SAYS GERALDINE WEISS AUTHOR OF THE BOOK DIVIDENDS DON'T LIE AND THE NEWSLETTER INVESTMENT QUALITY TRENDS WHAT WE ARE SEEING IS THE TAIL END OF A BULL MARKET WHERE VALUE IS THROWN TO THE WIND AND DIVIDEND YIELDS DON'T SEEM TO MATTER MS WEISS SAYS THAT ONLY 8 OF THE 350 DIVIDENDPAYING BLUECHIP STOCKS THAT SHE FOLLOWS ARE UNDERVALUED THAT'S THE LOWEST PERCENTAGE OF UNDERVALUED STOCKS SHE HAS SEEN IN THE 27 YEARS SHE HAS BEEN PUBLISHING THE NEWSLETTER THE BULL MARKET IS NOW ON LIFE SUPPORT SHE SAYS IT'S VULNERABLE TO A SUDDEN TURN FOR THE WORSE IF SOMEONE PULLS THE PLUG RISING INTEREST RATES FOR INSTANCE COULD QUICKLY DERAIL THE STOCK MARKET SHE SAYS AND OTHER EXPERTS DON'T EXPECT THE PROBLEM TO BE RESOLVED BY RISING DIVIDENDS ARNOLD KAUFMAN EDITOR OF STANDARD & POOR'S OUTLOOK NEWSLETTER SAYS DIVIDENDS ARE LIKELY TO RISE ONLY ABOUT 6 THIS YEAR THAT WORRIES INVESTMENT ADVISORS LIKE AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF INVESTMENT VOGUES COME AND GO BUT THE DIVIDEND PAYOUT IS ONE OF THE REAL RETURNS INVESTORS GET HE SAYS IT'S MORE IMPORTANT THAN PEOPLE SEEM TO THINK IT IS RIGHT NOW STILL HE SAYS INVESTORS SHOULDN'T TAKE THEIR CUES FROM ONLY ONE INDICATOR HE ISN'T SWITCHING TO A DEFENSIVE POSTURE YET HE SAYS BECAUSE LOTS OF OTHER MARKET INDICATORS ARE STILL POSITIVE A RALLY IN ECONOMICALLY SENSITIVE STOCKS SENT THE DOW JONES INDUSTRIAL AVERAGE TO ITS SECOND RECORD IN A WEEK BUT PROFITTAKING IN SMALLER GROWTH STOCKS SAPPED THE BROADER MARKET THE DOW JONES INDUSTRIALS SURGED 2540 POINTS OR 074 TO 344214 SMASHING THE RECORD SET ONLY A DAY EARLIER STANDARD & POOR'S 500STOCK INDEX LOST 063 TO 44893 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 038 TO 24760 DECLINING ISSUES TOPPED ADVANCERS 1005 TO 916 TRADING ON THE BIG BOARD WAS HEAVY WITH 320960000 SHARES CHANGING HANDS DOWN FROM THURSDAY'S ROBUST 346480000 SHARES FOR THE WEEK THE DOW JONES INDUSTRIALS GAINED ALMOST 4 AND THE STANDARD & POOR'S 500 ADVANCED 23 CYCLICAL STOCKS DREW BUYERS FROM THE OPENING BELL AS INVESTORS RESPONDED ENTHUSIASTICALLY TO AN EMPLOYMENT REPORT POINTING TO A MORE BUOYANT ECONOMY ALUMINUM CO OF AMERICA ROSE 1 5/8 TO 77 5/8 AND MINNESOTA MINING & MANUFACTURING BOUNCED UP 4 1/2 TO 108 3/4 GENERAL MOTORS REBOUNDED SLIGHTLY AFTER FALLING THURSDAY ON A LIABILITY RULING AGAINST THE DETROIT AUTO MAKER PRESIDENT JOHN F SMITH JR SAID THAT THE COMPANY'S FINANCIAL PERFORMANCE IS IMPROVING SIGNIFICANTLY AND OUR FOURTH QUARTER WAS QUITE STRONG GM ROSE 3/8 TO 37 7/8 INTERNATIONAL PAPER INCHED UP 7/8 TO 69 1/4 AND WEYERHAEUSER ADDED 1/8 TO 42 3/4 A BEAR STEARNS ANALYST UPGRADED HER RATINGS ON BOTH COMPANIES TO BUY FROM HOLD IN THE WAKE OF A SHARP RISE IN TIMBER PRICES CPC INTERNATIONAL GAINED 3/4 TO 46 1/2 THE FOOD COMPANY SAID IT EXPECTS ITS 1993 EARNINGS INCREASE TO BE ON A DOUBLEDIGIT THRESHOLD NEW ENGLAND ELECTRIC SYSTEM SLIPPED 3/8 TO 39 3/8 THE UTILITY SAID IT EXPECTS TO INCUR A CHARGE OF AS MUCH AS 30 MILLION IN 1993 TO COVER THE COSTS OF AN EARLY RETIREMENT PROGRAM 9302080009 930208 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AVID TECHNOLOGY INC AN INITIAL OFFERING OF 2800000 COMMON SHARES VIA MORGAN STANLEY & CO ROBERTSON STEPHENS & CO AND VOLPE WELTY & CO GUPTA CORP AN INITIAL OFFERING OF 22 MILLION COMMON SHARES VIA MORGAN STANLEY & CO INC AND HAMBRECHT & QUIST INC LONGHORN STEAKS INC AN OFFERING OF 2000000 COMMON SHARES VIA JC BRADFORD & CO AND ROBINSONHUMPHREY CO MICROCHIP TECHNOLOGY INC AN INITIAL OFFERING OF 15 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND MONTGOMERY SECURITIES PACIFIC SUNWEAR OF CALIFORNIA INC AN INITIAL OFFERING OF 18 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND ALEX BROWN & SONS INC PARALLAN COMPUTER INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES SHOE CARNIVAL INC AN INITIAL OFFERING OF 21 MILLION COMMON SHARES VIA MCDONALD & CO SECURITIES INC AND ROBINSONHUMPHREY CO UNITEL VIDEO INC AN OFFERING OF 125 MILLION COMMON SHARES VIA LEGG MASON WOOD WALKER INC 9302080008 930208 JAPAN AUTO MAKERS HIRE LAWYER FOR TRADE DISPUTE NEW ORLEANS REPRESENTATIVES OF THE MAJOR JAPANESE CAR COMPANIES HAVE HIRED A LAWYER TO INVESTIGATE A LEGAL COUNTERATTACK AGAINST A THREATENED DUMPING ACTION BY THE BIG THREE US AUTO MAKERS A SPOKESMAN FOR TOYOTA MOTOR CORP'S US ARM SAID THE ACTION COULD INCLUDE AN ANTITRUST LAWSUIT THE SPOKESMAN SAID WE'RE NOT GOING TO PLAY DOORMAT ANYMORE THE JAPANESE AUTO MAKERS HAVEN'T MADE A COURT FILING BUT SUCH A MOVE WOULD RAISE THE STAKES IN THE TRADE DISPUTE BETWEEN DETROIT AND JAPAN US AUTO MAKERS HAVE BEEN ACTING IN CONCERT ON AN INCREASING ARRAY OF ISSUES A BREAK FROM YEARS IN WHICH THE BIG THREE RIVALS HAD LITTLE COMMUNICATION AND STOOD APART ON MANY MAJOR ISSUES SO FAR THESE JOINT DEALINGS HAVE BEEN SANCTIONED BY FEDERAL ANTITRUST OFFICIALS 9302080007 930208 CLOSING AN ACCOUNT GROWS COSTLY AS BROKERAGE FIRMS SET FEES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HERE'S WHAT SOME INVESTORS WILL SOON GET WHEN THEY CLOSE OUT THEIR BROKERAGE ACCOUNT A 50 TAB THREE BIG BROKERAGE FIRMS ARE LEVYING TRANSFER FEES WHEN THEIR CUSTOMERS CLOSE AN ACCOUNT AND MOVE TO A RIVAL SECURITIES FIRM THE THREE SMITH BARNEY HARRIS UPHAM & CO SHEARSON LEHMAN BROTHERS INC AND PRUDENTIAL SECURITIES INC SAY THE 50 FEE WILL HELP OFFSET RISING PAPERWORK AND ADMINISTRATIVE EXPENSES THE FEE APPLIES ONLY WHEN INVESTORS SHUT THEIR ACCOUNT NOT WHEN THEY SIMPLY TRANSFER SECURITIES TO ANOTHER BROKERAGE FIRM IT'S JUST A COST OF DOING BUSINESS SAYS JOSEPH PLUMERI SHEARSON'S BROKERAGE CHIEF TRANSFERRING AN ACCOUNT OUT OF THE PLACE TO ANOTHER INSTITUTION IS AN EXPENSIVE PROPOSITION HE SAYS TRANSFER FEES ARE THE LATEST IN A GROWING ROSTER OF CHARGES FOR INVESTORS DEALING WITH BIG WALL STREET FIRMS MERRILL LYNCH & CO THE NATION'S LARGEST BROKERAGE FIRM CHARGES SOME CUSTOMERS AN ANNUAL 40 FEE FOR THE RIGHT TO TRADE STOCKS THROUGH A BASIC BROKERAGE ACCOUNT MERRILL ALSO IMPOSES A 15 FEE FOR INVESTORS WHO REQUEST A STOCK CERTIFICATE WHEN THEY BUY SHARES PAINEWEBBER GROUP INC PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA AND SHEARSON A UNIT OF AMERICAN EXPRESS CO RAISED THEIR POSTAGE AND HANDLING FEES FOR TRADE CONFIRMATIONS LAST YEAR AND DEAN WITTER REYNOLDS INC A SEARS ROEBUCK & CO UNIT HAS JOINED THE GROWING LIST OF BROKERAGE FIRMS THAT CHARGE CUSTOMERS AN ANNUAL 50 INACTIVE FEE FOR THOSE WHO AREN'T FREQUENT TRADERS THE TRANSFER FEES AT SHEARSON THE SECOND BIGGEST BROKERAGE FIRM AND SMITH BARNEY A PRIMERICA CORP UNIT WILL TAKE EFFECT NEXT WEEK THE EXIT FEE AT PRUDENTIAL SECURITIES HAS BEEN IN PLACE SINCE EARLY LAST YEAR INVESTORS WON'T ALWAYS GET STUCK PAYING THE NEW FEE HOWEVER IN A NOTE RECENTLY SENT TO CUSTOMERS SMITH BARNEY SAYS THE DECISION WHETHER TO CHARGE SUCH A FEE SHALL BE AT THE SOLE DISCRETION OF THE FIRM SMITH BARNEY SAYS IT OFTEN WILL ABSORB THESE TRANSFER FEES FROM CLIENTS ARRIVING FROM A RIVAL FIRM IF THE OTHER FIRM RETURNS THE FAVOR SHEARSON AND PRUDENTIAL SAY THEY HAVE NO PLANS TO ABSORB TRANSFER FEES THOUGH SOME INDIVIDUAL BROKERS MAY DO IT FOR SELECTED CLIENTS MEANWHILE SOME BROKERAGE EXECUTIVES CRITICIZE THE NEW CHARGES WHICH COULD OFFEND INVESTORS WRITING OFF FORMER CLIENTS IS DEAD WRONG IF A CUSTOMER LEAVES US WE WANT HIM TO COME BACK SAYS JOHN BACHMANN MANAGING PRINCIPAL AT EDWARD D JONES & CO A ST LOUIS BROKERAGE FIRM THAT DOESN'T LEVY SUCH FEES BUT SHEARSON'S MR PLUMERI DEFENDS THE NEW PRACTICE I DON'T THINK 50 WILL DEMOTIVATE ANYBODY FROM TAKING THEIR BUSINESS ELSEWHERE OR RETURNING TO THE FIRM HE SAYS OTHER FEES ARE MUCH MORE ONEROUS HE ARGUES SUCH AS THOSE FOR OPENING AND MAINTAINING AN ACCOUNT THAT'S WHAT YOU SHOULD BE FOCUSING ON HE URGES MR PLUMERI NOTES THAT SHEARSON STILL OFFERS A BUNCH OF SERVICES FOR FREE FROM CUSTOMIZED MUTUAL FUND EVALUATIONS TO RETIREMENTPLANNING ANALYSES TO EDUCATION FUNDING PROGRAMS MR PLUMERI SAYS HE IS THINKING OF PUTTING A FEE WAIVED STAMP ON SOME OF THESE FREE SERVICES THEN SOMEONE WILL CALL AND THANK ME FOR WAIVING A FEE WHEN WE NEVER CHARGED ONE HE SAYS 9302080006 930208 ESPY PROPOSES STEPS TO BOOST SAFETY OF FOOD BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AGRICULTURE SECRETARY MIKE ESPY RECOMMENDED A SERIES OF STEPS TO IMPROVE FOOD SAFETY AFTER AN OUTBREAK OF ILLNESS AMONG PEOPLE WHO ATE UNDERCOOKED MEAT AT THE JACK IN THE BOX FASTFOOD CHAIN THE PROPOSALS OUTLINED IN A SENATE HEARING INCLUDE ADVANCING EFFORTS TO ALLOW LOWLEVEL IRRADIATION OF MEAT TO ELIMINATE POSSIBLE MICROBIOLOGICAL CONTAMINANTS THAT CAN'T BE DETECTED BY CURRENT VISUALINSPECTION METHODS ULTIMATELY MR ESPY SAID HE WOULD LIKE TO ESTABLISH A SYSTEM FOR DETECTING SUCH CONTAMINANTS OTHER NEW IDEAS INCLUDE ADOPTING FEDERAL RULES FOR THE COOKING AND HANDLING OF MEAT PATTIES MANDATING SAFEHANDLING LABELS ON MEAT AND POULTRY PRODUCTS AND FILLING VACANT MEATINSPECTOR POSITIONS MR ESPY COULDN'T SAY HOW MUCH THESE EFFORTS WOULD COST BUT HE SAID MAJOR STEPS WERE NEEDED BECAUSE FOODSAFETY RULES DEVELOPED EARLY THIS CENTURY ARE NO LONGER SUFFICIENT TO MEET THE FOOD SAFETY NEEDS OF TODAY'S CONSUMERS THE AGRICULTURE SECRETARY WAS CALLED TO TESTIFY BECAUSE 300 PEOPLE RECENTLY BECAME ILL AND AT LEAST ONE CHILD DIED AFTER EATING CONTAMINATED HAMBURGERS SOLD IN WASHINGTON AND OTHER WESTERN STATES BY JACK IN THE BOX A UNIT OF FOODMAKER INC SAN DIEGO A RARE DEADLY BACTERIA WHICH WOULD BE KILLED BY COOKING AT HIGH TEMPERATURES WAS FOUND IN THE MEAT MR ESPY SAID MOST FASTFOOD ESTABLISHMENTS ARE ABSOLUTELY SAFE HE SAID MEAT SHOULD BE WELLCOOKED AND SHOULDN'T BE RED IN THE CENTER ROBERT NUGENT PRESIDENT OF JACK IN THE BOX EXPRESSED HIS REGRET OVER THE INCIDENT BUT TESTIFIED THAT JACK IN THE BOX COOKING PROCEDURES MET ALL FEDERAL STANDARDS THE COMPANY DIDN'T FOLLOW WASHINGTON STATE LAW THOUGH WHICH REQUIRES COOKING THE PATTIES AT 155 DEGREES FAHRENHEIT DR RUSSELL CROSS HEAD OF THE FOOD SAFETY AND INSPECTION SERVICE LISTED THE REFORMS MENTIONED BY MR ESPY TO PREVENT FURTHER OUTBREAKS AND TO REDUCE THE RISK OF OTHER CONTAMINANTS IN THE FOOD SUPPLY HE SAID THAT FURTHER RESEARCH MUST BE DONE ON LOWLEVEL IRRADIATION OF MEAT BUT HE SAID THE ANALYSIS SHOULD BE COMPLETED WITHIN A YEAR AND HE SAID THE AGRICULTURE DEPARTMENT WILL PUSH FOR QUICK FOOD AND DRUG ADMINSTRATION APPROVAL LOWLEVEL IRRADIATION ALREADY IS ALLOWED FOR POULTRY FRUITS AND VEGETABLES DR CROSS SAID THERE ARE 550 VACANCIES IN THE FEDERAL MEATINSPECTOR FORCE THE AGRICULTURE DEPARTMENT WOULD LIKE TO HIRE AND TRAIN AT LEAST 160 QUALIFIED PEOPLE WITHIN 12 MONTHS HE SAID THERE CURRENTLY ARE NO REGULATIONS FOR COOKING AND HANDLING MEAT BUT HE SAID THE AGRICULTURAL DEPARTMENT IS NEARLY FINISHED DRAFTING SUCH RULES 9302080005 930208 KKR FILES WITH SEC ON POSSIBLE CHANGES AT FIRST INTERSTATE LOS ANGELES A MAJOR SHAREHOLDER OF FIRST INTERSTATE BANCORP KOHLBERG KRAVIS ROBERTS & CO SAID IT WAS CONSIDERING POTENTIAL CHANGES IN THE BANK'S OPERATIONS OR CAPITAL STRUCTURE BUT DENIED THAT IT IS SIGNALING IT WANTS A MAJOR STRATEGIC SHIFT AT THE BANK THE DISCLOSURE BY THE NEW YORK FINANCIERS KNOWN FOR BREAKING UP AND SELLING OFF PIECES OF COMPANIES THAT THEY CONTROL WAS MADE IN A FILING LAST WEEK WITH THE SECURITIES AND EXCHANGE COMMISSION IT INDICATES THAT KKR IS IMPATIENT WITH THE BANK'S GRADUAL RECOVERY AND COULD PRESS FOR THE SALE OF SOME OR ALL OF ITS OPERATIONS SCATTERED ACROSS 13 STATES KKR HOLDS AN 8 STAKE IN FIRST INTERSTATE WHICH IT BOUGHT ABOUT THREE YEARS AGO SINCE THEN THE BANK SUFFERED SOME UNFORESEEN QUARTERLY LOSSES REFLECTING A HISTORY OF POOR MANAGEMENT AND ILLCONCEIVED EXPANSION BUT RECENTLY IT RETURNED TO PROFITABILITY AND HAS ALL BUT DISPOSED OF ITS ONCE SERIOUS CREDIT PROBLEMS STILL KKR'S STATEMENT IN THE FILING THAT IT MAY OPEN DISCUSSIONS WITH MANAGEMENT AND SHAREHOLDERS ON THE BANK'S FUTURE SUGGESTS TO SOME ANALYSTS THAT THE BANK ACCELERATE ITS IMPROVEMENT ONE ANALYST SAID THAT THE EFFECT OF THE FILING COULD BE TO TRIGGER A BIDDING WAR FOR CONTROL OR PURCHASE OF FIRST INTERSTATE A FIRST INTERSTATE SPOKESMAN SAID THE FILING WAS NOTHING MORE THAN A ROUTINE DEVELOPMENT THEY'VE BEEN A SUPPORTIVE SHAREHOLDER HE SAID AND WE CONTINUE TO WELCOME THEIR SUPPORT A KKR SPOKESWOMAN INSISTED THAT THE STATEMENT WAS A SIMPLE LEGAL AMENDMENT TO PREVIOUS FILINGS ALLOWING THE COMPANY TO TALK ABOUT THE SAME ISSUES AS ANY OTHER STOCKHOLDER IT'S NOT TO SEND ANY KIND OF SIGNAL WHATSOEVER SHE SAID THIS WAS DONE FOR TECHNICAL LEGAL REASONS 9302080004 930208 FORMER THRIFT OWNER GETS PRISON SENTENCE IN I30' LOAN SCHEME DALLAS FORMER TEXAS THRIFT OWNER PAUL ARLIN JENSEN WAS SENTENCED TO 20 YEARS IN PRISON FOR HIS ROLE IN DEFRAUDING TWO THRIFTS OF MILLIONS OF DOLLARS IN A CONDOMINIUM PROJECT LOAN SCHEME DESPITE PLEAS FOR LENIENCY FROM FAMILY MEMBERS AND FRIENDS THE 43YEAROLD FATHER OF EIGHT RECEIVED A SENTENCE FROM US DISTRICT JUDGE JERRY BUCHMEYER EQUAL TO THOSE GIVEN TO THREE OTHER DEFENDANTS IN THE CASE THE JUDGE DIDN'T FINE MR JENSEN WHO WAS CONVICTED OF CONSPIRACY RACKETEERING AND FRAUD AT HIS NOVEMBER TRIAL MR JENSEN CONTROLLED TWO NOWDEFUNCT THRIFTS THAT PROVIDED LOANS TO AN ILLFATED CONDOMINIUM DEVELOPMENT ALONG INTERSTATE 30 EAST OF DALLAS THE LOANS WERE BASED ON INFLATED LAND VALUES PROSECUTORS SAID AND EVENTUALLY LED TO THE COLLAPSE OF FIVE FINANCIAL INSTITUTIONS MR JENSEN AND THREE OTHERS POCKETED AN ESTIMATED 126 MILLION IN MISDIRECTED LOAN PROCEEDS MR JENSEN HAD ALREADY BEEN ORDERED TO FORFEIT HIS 23 MILLION SHARE OF THE PROCEEDS FROM THE LENDING SCHEME ALTHOUGH THE GOVERNMENT SAYS IT DOESN'T EXPECT IT WILL EVER RECEIVE THE MONEY HAVING HEARD MR JENSEN TESTIFY TO A LAVISH LIFESTYLE AND WILD SPENDING HABITS GARY UDASHEN MR JENSEN'S LAWYER TOLD THE JUDGE HIS CLIENT DIDN'T INTENTIONALLY VIOLATE ANY LAWS AND THAT HE REALIZED THAT WHAT HE DID WAS WRONG MR JENSEN IS APPEALING THE VERDICT THE LAWYER SAID MR JENSEN WILL REMAIN FREE ON BAIL UNTIL THE COURT SETS A DATE FOR HIM TO REPORT TO PRISON THAT DATE WON'T BE SET UNTIL FELLOW THRIFT OWNERS DAVID DANNY FAULKNER JAMES TOLER AND SPENCER H BLAIN JR CONCLUDE THE APPEALS OF THEIR CONVICTIONS A SPOKESMAN FOR THE JUDGE SAID THE THREE CODEFENDANTS WERE ALSO SENTENCED TO 20 YEARS IN PRISON 9302080003 930208 BANKAMERICA TO SLASH TELLER BENEFITS HOURS IN COSTCUTTING MOVE SAN FRANCISCO BANKAMERICA CORP TOLD ITS TELLERS THEY WILL HAVE TO WORK FEWER HOURS AND IN SOME CASES LOSE THEIR BENEFITS AS PART OF A COSTCUTTING CAMPAIGN THE ACTION IS LIKELY TO ACCELERATE THE ELIMINATION OF JOBS IN THE WAKE OF ITS MERGER WITH SECURITY PACIFIC CORP BANKAMERICA PREVIOUSLY SAID IT WOULD CUT SOME 12000 JOBS FROM A COMBINED WORKFORCE OF 91000 AND CLOSE 30 OF ITS BRANCHES AT THE END OF 1992 BANKAMERICA EMPLOYED 83200 PEOPLE THE DRIVE TO SLASH PAYROLL COSTS COMES AT A TIME OF HIGH PROFITABILITY FOR THE NATION'S SECOND LARGEST BANK IN 1992 IT EARNED 15 BILLION OR 421 A SHARE EXCEEDING A ROBUST 1 RETURN ON ASSETS IN PART BECAUSE OF MERGERRELATED ANNUAL COST SAVINGS OF 800 MILLION BEFORE TAXES THAT FIGURE IS EXPECTED TO NEARLY DOUBLE OVER THE NEXT YEAR OR TWO THE BANK DECLINED TO SAY HOW MANY PEOPLE WILL BE TARGETED IN THE LATEST CUTBACKS BUT ANALYSTS SAY A MAJORITY OF ITS ESTIMATED 15000 TELLERS COULD BE AFFECTED ABOUT 90 OF BANKAMERICA'S TELLERS ALREADY WORK FEWER THAN 40 HOURS A WEEK BUT THEY RECEIVE BENEFITS SUCH AS HEALTH INSURANCE VACATIONS AND PENSION COVERAGE AS LONG AS THEY WORK AT LEAST 20 HOURS THOSE REQUIRED TO WORK FEWER THAN 20 HOURS WILL BE COMPENSATED WITH A MINIMUM THREE MONTHS' PAY A SPOKESMAN SAID THE BANK PORTRAYED THE ACTION AS A WAY TO RECONCILE STAFFING LEVELS WITH CUSTOMER DEMAND AND LONGER BRANCH HOURS WE HAVE MOVED INCREASINGLY TO PARTTIME STAFF OVER THE PAST FIVETOSEVEN YEARS IT'S NOT NEW AND IT'S DICTATED BY HOW BRANCH PATTERNS HAVE CHANGED A SPOKESMAN SAID SOME TELLERS WILL GET LESS HOURS AND SOME WILL GET MORE NOT ALL TELLERS ARE LOSING BENEFITS BUT ONE ANALYST SAID THE CLEAR GOAL WAS TO SLASH WORKER BENEFITS WHICH ACCOUNT FOR AS MUCH AS 35 OF PAYROLL COSTS 9302080002 930208 SUNBELT'S MCBIRNEY GETS STIFF JAIL TERM DESPITE COOPERATION DALLAS EDWIN T MCBIRNEY III THE FLAMBOYANT FORMER CHAIRMAN OF SUNBELT SAVINGS ASSOCIATION OF TEXAS WAS SENTENCED TO 15 YEARS IN PRISON DESPITE HIS TESTIMONY AGAINST OTHER SAVINGS AND LOAN EXECUTIVES MR MCBIRNEY 40 YEARS OLD IS THE LAST OF THE MAJOR FIGURES INVOLVED IN THE TEXAS S&L COLLAPSE TO BE SENTENCED HE PLEADED GUILTY TO BANK FRAUD AND THREE OTHER COUNTS MORE THAN TWO YEARS AGO BUT WAS ALLOWED TO POSTPONE SENTENCING AND REMAIN FREE AS PART OF HIS COOPERATION AGREEMENT ALTHOUGH THE GOVERNMENT HAD ALREADY DISMISSED 13 OF THE COUNTS HE FACED AS PART OF THAT AGREEMENT MR MCBIRNEY HAD HOPED THAT HIS COOPERATION WOULD WIN HIM A REDUCED SENTENCE ON THE REMAINING FOUR COUNTS BUT US DISTRICT JUDGE ROBERT MALONEY LEVIED THE MAXIMUM SENTENCE AND ORDERED HIM TO PAY 75 MILLION IN RESTITUTION FOR LOSSES HE CAUSED AT SUNBELT AND WESTERN SAVINGS ASSOCIATION OF DALLAS SUNBELT'S COLLAPSE COST TAXPAYERS 2 BILLION THE GOVERNMENT HAS SAID MR MCBIRNEY'S ATTORNEY PAUL COGGINS SAID HE AND HIS CLIENT WERE DISAPPOINTED IN LIGHT OF MR MCBIRNEY'S UNPRECEDENTED COOPERATION MR MCBIRNEY HOWEVER WILL CONTINUE TO COOPERATE WITH PROSECUTORS AND CONTINUE TO TESTIFY IN S&L CASES MR COGGINS SAID IN ONE TRIAL HE TESTIFIED THAT S&L COMPATRIOT JARRETT E WOODS OF WESTERN SAVINGS REPAID PART OF A 5 MILLION GAMBLING DEBT WITH THRIFT FUNDS MR WOODS WAS CONVICTED SENTENCED TO 25 YEARS IN PRISON AND ORDERED TO PAY 379 MILLION IN RESTITUTION MR MCBIRNEY WAS A HIGH PRIORITY TARGET OF THE JUSTICE DEPARTMENT'S THRIFT WAR BECAUSE OF THE SIZE OF SUNBELT'S DEMISE AND THE GAUDY LIFESTYLE HE PROJECTED 9302080001 930208 MARKETING & MEDIA JOURNAL'S PUTKA IS HONORED FOR EDUCATION REPORTING RESTON VA GARY PUTKA A REPORTER IN THE BOSTON BUREAU OF THE WALL STREET JOURNAL WAS NAMED GRAND PRIZE WINNER IN THE ANNUAL BENJAMIN FINE AWARDS FOR OUTSTANDING EDUCATION REPORTING MR PUTKA WAS HONORED FOR AN ARTICLE WHICH REPORTED ON HOW STUDENTS CHEATED IN CLASSWORK AND ON COLLEGE ENTRANCE EXAMS AT A PITTSBURGH HIGH SCHOOL THE HONOR INCLUDED A 1500 CASH AWARD THE AWARDS ARE SPONSORED BY THE NATIONAL ASSOCIATION OF SECONDARY SCHOOL PRINCIPALS IN ADDITION ERIC MORGENTHALER CHIEF OF THE JOURNAL'S MIAMI BUREAU RECEIVED AN HONORABLE MENTION AWARD FOR AN ARTICLE ABOUT A MIAMI HIGH SCHOOL TEACHER'S EFFORTS TO ASSIST A STUDENT WITH A TROUBLED BACKGROUND THE WALL STREET JOURNAL IS PUBLISHED BY DOW JONES & CO 9302080159 930107 MANAGED COMPETITION TOO LITTLE COMPETITION BY JOHN C GOODMAN FROM THE CAMPAIGN TRAIL TO THE LITTLE ROCK ECONOMIC SEMINAR BILL CLINTON HAS REPEATEDLY SAID THAT HEALTH CARE REFORM IS ONE OF HIS TOP PRIORITIES SO WHAT'S MR CLINTON'S ANSWER IT'S CALLED MANAGED COMPETITION THE NEW YORK TIMES IS FOR IT SO IS THE AMERICAN MEDICAL ASSOCIATION AND THE US CHAMBER OF COMMERCE SOME OF THE LARGEST HEALTH INSURERS BACK IT AND IT HAS GROWING SUPPORT IN CONGRESS WHY HAS MANAGED COMPETITION BECOME SO POPULAR THE REASONS ARE NOT HARD TO FIND CLAIMING TO AVOID THE POLAR EXTREMES OF SOCIALIZED MEDICINE AND FREE MARKETS THE ADVOCATES OF MANAGED COMPETITION SAY THEY HAVE FOUND A WORKABLE MIDDLE GROUND CAPTURING THE BENEFITS OF COMPETITION AND SOLVING SOCIAL PROBLEMS AT THE SAME TIME CAN MANAGED COMPETITION REALLY DELIVER ON THIS PROMISE THERE ARE GOOD REASONS TO BE SKEPTICAL MANAGED COMPETITION MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE BUT IT ALMOST ALWAYS MEANS INTRODUCING MORE COMPETITION INTO THE MEDICAL MARKETPLACE INCLUDING THE MARKET FOR HEALTH INSURANCE CURRENTLY MOST EMPLOYERPROVIDED HEALTH INSURANCE PLANS SUPPRESS COMPETITION EMPLOYEES RARELY HAVE A CHOICE AMONG HEALTH PLANS AND WHEN THEY DO HAVE A CHOICE THEY ALMOST NEVER KNOW THE REAL COST OF ANY OF THE OPTIONS UNDER MANAGED COMPETITION AN IDEA DEVELOPED BY THE PROMINENT JACKSON HOLE GROUP EMPLOYEES WOULD CHOOSE FROM AN ARRAY OF COMPETING PLANS THE EMPLOYER'S CONTRIBUTION WOULD BE A FIXED SUM AND THE EMPLOYEE WOULD PAY THE BALANCE OF THE PREMIUM OUT OF HIS OWN POCKET THIS WOULD MAKE EMPLOYEES PRICECONSCIOUS AND ENCOURAGE HEALTH INSURERS TO HOLD DOWN THE COSTS OF THEIR PLANS TO MAKE THEM ATTRACTIVE REFORMS WOULD ALSO MAKE HEALTH INSURANCE PERSONAL AND PORTABLE SO THAT EMPLOYEES WOULD NOT LOSE COVERAGE WHEN THEY CHANGED JOBS AND INSURERS WOULD NOT BE ABLE TO ARBITRARILY CANCEL POLICIES OR SINGLE OUT SICK PEOPLE FOR UNFAIR PREMIUM INCREASES SO FAR SO GOOD INDEED HOW COULD ANY REDBLOODED AMERICAN OBJECT THE PROBLEM IS THAT THE ADVOCATES OF MANAGED COMPETITION WANT GOVERNMENT TO MANAGE IT WITHOUT EVEN WAITING FOR THE MARKET TO WORK THEY HAVE ALREADY DECIDED THAT EVERYONE SHOULD BE IN A MANAGED CARE PROGRAM THEY ALSO WANT PRICE FIXING FOR HEALTH INSURANCE PREMIUMS AND THEY ADVOCATE SUCH HEAVY REGULATION OF THE HEALTH INSURANCE INDUSTRY THAT FOR ALL PRACTICAL PURPOSES INSURERS WOULD BE FORCED OUT OF THE INSURANCE BUSINESS AS TRADITIONALLY UNDERSTOOD AND INTO THE BUSINESS OF MANAGED CARE THE TERM MANAGED CARE HAS BEEN APPLIED TO ALL SORTS OF ACTIVITIES INCREASINGLY HOWEVER IT MEANS THE KIND OF LIMITED SERVICES OFFERED BY HEALTH MAINTENANCE ORGANIZATIONS AND HMOTYPE PLANS THE DETAILS VARY BUT THE NET EFFECT OF SUCH ARRANGEMENTS IS OFTEN A DISTURBING INTERFERENCE IN THE DOCTORPATIENT RELATIONSHIP THE CHOICE OF PHYSICIAN OR HOSPITAL WOULD BE LIMITED AND ACCESS TO EXPENSIVE PROCEDURES CURTAILED EVEN WITHOUT HMOS PATIENTS HAVE GOOD REASON TO BE CONCERNED ABOUT CHOICES BEING MADE FOR THEM A PATIENT IN A HOSPITAL THESE DAYS CAN RECEIVE DRUGS AND NOT BE TOLD AND PERHAPS NEVER LEARN THAT THERE ARE BETTER MORE EXPENSIVE DRUGS THAT WILL NOT BE USED BECAUSE AN INSURER DID NOT WANT TO PAY FOR THEM UNDER MANAGED CARE THINGS WOULD BE WORSE THE INTRUSION OF INSURERS INTO THE PRACTICE OF MEDICINE WOULD BECOME A MATTER OF PUBLIC POLICY AS WOULD CONTROLS ON HEALTH INSURANCE PREMIUMS AN IDEAL INSURANCE MARKET IS ONE IN WHICH RISK IS PRICED ACCURATELY EACH PERSON ENTERING AN INSURANCE POOL IS CHARGED A PREMIUM THAT REFLECTS THE EXPECTED COST AND RISK THAT PERSON BRINGS TO THE POOL IN AN IDEAL INSURANCE MARKET PEOPLE PAY FOR WHAT THEY GET MANAGED COMPETITION HOWEVER WOULD FORCE INSURERS TO CHARGE THE SAME PRICE TO ALL BUYERS COMMUNITY RATING OR TO ALL BUYERS IN THE SAME AGE GROUP THUS A PERSON WHO HAS CANCER OR AIDS WOULD BE ABLE TO PURCHASE HEALTH INSURANCE FOR THE SAME PRICE AS SOMEONE WHO DOES NOT AS A RESULT INSURERS WOULD BE FORCED TO OVERCHARGE LOWRISK HEALTHIER PEOPLE IN ORDER TO UNDERCHARGE HIGHRISK PEOPLE ONE CONSEQUENCE IS THAT HEALTHIER PEOPLE WOULD BE DISCOURAGED FROM BECOMING INSURED AFTER ALL WHY BUY HEALTH INSURANCE TODAY IF YOU KNOW YOU CAN BUY IT IN THE FUTURE AFTER YOU GET SICK ACCORDING TO ONE ESTIMATE LESS THAN 1 OF AMERICANS ARE UNINSURABLE YET IN AN ATTEMPT TO MAKE HEALTH INSURANCE ACCESSIBLE FOR THIS TINY NUMBER MANY REFORMERS WOULD IMPOSE PRICE CONTROLS AND RAISE PREMIUMS FOR THE OTHER 99 UNLESS HEALTH INSURANCE IS MADE MANDATORY AS SOME MANAGED COMPETITION REFORMERS ADVOCATE THOUGH THEY HAVE YET TO SUGGEST A FEASIBLE PLAN TO ACCOMPLISH THIS OBJECTIVE THE RESULT WOULD ALMOST CERTAINLY BE A LARGER NUMBER OF PEOPLE WHO ARE VOLUNTARILY UNINSURED THE EFFECT OF THIS ARRANGEMENT IS ANYTHING BUT COMPETITIVE SINCE INSURERS WOULD HAVE TO CHARGE THE SAME PREMIUM TO ALL TAKERS THEY WOULD NOT BE ABLE TO COMPETE ON THEIR ABILITY TO PRICE AND MANAGE RISK INSTEAD THEY WOULD BE FORCED TO COMPETE ON THEIR ABILITY TO MANAGE HEALTHCARE COSTS THIS IS SIMILAR TO INSISTING THAT AUTO INSURERS GET INTO THE BUSINESS OF MANAGING AUTOMOBILE REPAIRS AND IT WON'T WORK TO ILLUSTRATE THE PROBLEM IMAGINE SEVERAL HEALTHINSURANCE PLANS OFFERING IDENTICAL SERVICES BECAUSE THEY MUST TAKE ALL APPLICANTS AT THE SAME PREMIUM EACH HAS AN INCENTIVE TO ATTRACT HEALTHY PEOPLE AND AVOID PEOPLE WHO ARE LIKELY TO GENERATE HIGH COSTS COMPANIES THAT ARE LESS SUCCESSFUL IN AVOIDING SICK PEOPLE WILL HAVE HIGHER COSTS WHICH WILL REQUIRE HIGHER PREMIUMS WHICH WILL RESULT IN FEWER CUSTOMERS ETC FOR THESE REASONS ANY PLAN THAT INCLUDES A ONEPRICEFORALL RULE IS INHERENTLY UNSTABLE TO KEEP THE MARKET FROM DISINTEGRATING PROPONENTS INVARIABLY PROPOSE A COMPLEX GOVERNMENT BUREAUCRACY DESIGNED TO 1 REDISTRIBUTE FUNDS FROM PROFITABLE TO UNPROFITABLE INSURERS AND 2 REGULATE THE CONTENT OF HEALTH INSURANCE POLICIES PREVENTING INSURERS FROM OFFERING HIGHER DEDUCTIBLES OR OTHER FEATURES THAT ARE LIKELY TO ATTRACT HEALTHIER SUBSCRIBERS A REALWORLD EXAMPLE OF ONE TYPE OF MANAGED COMPETITION IS THE FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM FEHBP DURING THE 1980S THE FEDERAL GOVERNMENT'S SPENDING ON EMPLOYEE HEALTH BENEFITS GREW AT A RATE THAT WAS MORE THAN A PERCENTAGE POINT FASTER THAN THAT OF EMPLOYERPROVIDED HEALTH INSURANCE GENERALLY 112 VS 10 WHEN SPENDING IS ADJUSTED FOR THE NUMBER OF EMPLOYEES THE FEDERAL EMPLOYEES' PLAN GREW MORE THAN 25 FASTER THAN PRIVATESECTOR PLANS ONE REASON THE FEHBP HAS NOT HELD DOWN COSTS IS THAT DEDUCTIBLES ARE QUITE LOW EVEN THOUGH MOST PRIVATE EMPLOYERS ARE INCREASING THEIR DEDUCTIBLES BLUE CROSS'S FEHBP HIGHOPTION PLAN HAS A DEDUCTIBLE OF 200 AND ITS STANDARDOPTION PLAN HAS A DEDUCTIBLE OF 250 WHY SO LOW BECAUSE THE OFFICE OF PERSONNEL MANAGEMENT WON'T ALLOW BLUE CROSS OR ANY OTHER INSURER TO RAISE ITS DEDUCTIBLES OR ITS COPAYMENTS THE REASON PLANS WITH GREATER PATIENT COSTSHARING ARE LESS EXPENSIVE IN GENERAL AND ARE LIKELY TO ATTRACT YOUNGER HEALTHIER EMPLOYEES RATHER THAN OLDER LESS HEALTHY ONES IN FACT OPM RIGOROUSLY REVIEWS EVERY TINY CHANGE IN PLAN DESIGN TO MAKE SURE THAT IT DOES NOT FAVOR GOOD RISKS OVER BAD ONES EVEN WITH ALL OF THIS OVERSIGHT OUTSIDE ANALYSTS SAY THAT VIRTUALLY ALL THE COMPETITION THAT EXISTS IS COMPETITION FOR GOOD RISKS PRESUMABLY THIS IS NOT THE KIND OF COMPETITION THAT PROPONENTS OF MANAGED COMPETITION HAVE IN MIND BUT ADVERSE SELECTION IS PRECISELY WHAT RESULTS WHEN INSURERS REGULATED BY GOVERNMENT CANNOT PRICE RISK ACCURATELY BY ALERTING US TO THE NEED FOR MARKETBASED REFORMS THE ADVOCATES OF MANAGED COMPETITION HAVE PERFORMED A VALUABLE SERVICE THE PROBLEM IS THAT THEY PROMISE TOO MUCH MANAGEMENT AND TOO LITTLE COMPETITION WHAT IS NEEDED IS NOT MANAGED COMPETITION BUT REAL COMPETITION WE SHOULD ALLOW INDIVIDUAL PEOPLE RATHER THAN BUREAUCRATS TO CHOOSE HEALTH INSURANCE BENEFITS IN THE FACE OF MARKET PRICES AND MAKE THEIR OWN DECISIONS ABOUT THE DESIRABILITY OF MANAGED CARE COMPETITIVE MARKETS CAN PERFORM QUITE WELL WITHOUT THE HEAVY HAND OF GOVERNMENT MR GOODMAN IS PRESIDENT OF THE NATIONAL CENTER FOR POLICY ANALYSIS IN DALLAS AND THE AUTHOR WITH GERALD L MUSGRAVE OF PATIENT POWER SOLVING AMERICA'S HEALTH CARE CRISIS CATO INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR FEDERAL HEALTH PLAN A COSTCONTROL SUCCESS WSJ FEB 8 1993 9301070147 9302080116 930121 CLINTON'S PEOPLE PRESIDENT'S TEAM IS ELITE CREW ADDRESSING COMMON MAN'S WOES TOP EDUCATION LIFTED THEM BUT ALSO DEFINES A GULF WITH AVERAGE AMERICAN PROSPERING FINANCIALLY IN '80S BY DAVID ROGERS AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON TOOK OFFICE YESTERDAY PLEDGING TO GIVE THE GOVERNMENT BACK TO ORDINARY AMERICANS BUT THE BABYBOOMER TEAM HE HAS ASSEMBLED TO RUN THAT GOVERNMENT INCLUDES MORE WHO STUDIED AT OXFORD IN THE 1960S THAN WHO FOUGHT IN VIETNAM THE CONTRAST IS PART OF 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 AS A CANDIDATE MR CLINTON SPOKE IN POPULIST RHETORIC PLAYING TO THE MIDDLE CLASS APPEALING FOR PUBLIC SERVICE AND DERIDING THE FINANCIAL EXCESSES OF THE 1980S THE CABINET HE HAS PUT TOGETHER HOWEVER IS LARGELY MADE UP OF A NEW ELITE PEOPLE WHO STUDIED AT THE BEST UNIVERSITIES WHO LARGELY ESCAPED THE WAR OF THEIR GENERATION AND IN MANY CASES WHO STRUCK IT RICH IN THE DECADE THEY NOW OFTEN CRITICIZE THESE ARE NOT THE PEOPLE OF PATRICIAN BACKGROUND WHO SHOWED UP IN GEORGE BUSH'S CABINET BUT IN THEIR OWN WAY THEY TOO ARE FAR REMOVED FROM AVERAGE MEN AND WOMEN THEIR OWN AGE MANY ARE MULTIMILLIONAIRES AND ONLY ONE CABINET NOMINEE JESSE BROWN NAMED TO HEAD THE VETERANS AFFAIRS DEPARTMENT SAW COMBAT IN VIETNAM ALTHOUGH VICE PRESIDENT GORE WENT TO VIETNAM AS AN ARMY NEWS CORRESPONDENT FOR SEVERAL MONTHS MR CLINTON MAY HAVE A CABINET THAT LOOKS LIKE AMERICA IN TERMS OF BLACKS AND WOMEN BUT HEY THIS CABINET IS NOT AT ALL LIKE AMERICA IN ANY KIND OF ECONOMIC OR CLASS DIMENSION SAYS WALTER DEAN BURNHAM PROFESSOR OF GOVERNMENT AT THE UNIVERSITY OF TEXAS AT AUSTIN SPEAKING YESTERDAY AFTER HIS INAUGURAL OATH AT THE CAPITOL MR CLINTON SEEMED MINDFUL OF THESE DIVISIONS HE CHASTISED WASHINGTON FOR FORGETTING THOSE PEOPLE WHOSE TOIL AND SWEAT SENDS US HERE AND PAYS OUR WAY AND VOWED LET US GIVE THIS CAPITAL BACK TO THE PEOPLE TO WHOM IT BELONGS OF COURSE IT IS HARDLY UNEXPECTED OR UNUSUAL THAT A PRESIDENT SHOULD FILL THE HIGHEST POSITIONS IN GOVERNMENT WITH PEOPLE OF ACCOMPLISHMENT IT'S OBVIOUSLY DIFFICULT TO APPOINT ACTUAL LITTLE GUYS' TO POSITIONS OF GREAT AUTHORITY IN THE FEDERAL GOVERNMENT NOTES JAMES REICHLEY A GEORGETOWN UNIVERSITY POLITICAL SCIENCE PROFESSOR WEALTH AND HIGHLEVEL WASHINGTON SERVICE HAVE LONG BEEN PAIRED ALTHOUGH ANDREW JACKSON AND ABRAHAM LINCOLN TURNED TO POLITICIANS AND JOURNALISTS WHO WEREN'T WEALTHY WHEN THEY WENT INTO THE WHITE HOUSE MR REICHLEY SAYS IT WAS A DIFFERENT KIND OF SOCIETY THEN WHAT IS DIFFERENT ABOUT THE NEW ADMINISTRATION IS THE CHARACTERISTIC THAT DISTINGUISHES THE ELITE IT IS EDUCATION MORE THAN BIRTH OR WEALTH THAT DEFINES CLASS FOR MR CLINTON'S GENERATION AND VIETNAM IS A HISTORIC MARKER THAT DIVIDES THIS BEST AND BRIGHTEST FROM THAT OF THE KENNEDY POSTWORLD WAR II GENERATION VIETNAM REPRESENTS A CLASS TRANSITION SAYS KEVIN PHILLIPS AUTHOR OF THE POLITICS OF RICH AND POOR IT BEGAN WITH THE ELITES WHO WERE SURE THEY COULD PULL IT OUT SAYS THE POLITICAL ANALYST IT ENDED WITH A YOUNGER VERSION OF THE MCGEORGE BUNDYS AND ROBERT MCNAMARAS WALKING AWAY FROM IT MR CLINTON'S OWN HISTORY AS A KENNEDY SUPPORTER A SENATE AIDE AND THEN A RHODES SCHOLAR DURING THE WAR FITS THIS MOLD HIS NEW DEFENSE SECRETARY LES ASPIN STUDIED AT YALE AND OXFORD BEFORE BECOMING ONE OF DEFENSE SECRETARY ROBERT MCNAMARA'S WHIZ KIDS DURING THE KENNEDY ADMINISTRATION JAMES WOOLSEY THE RHODES SCHOLAR NOMINATED TO HEAD THE CENTRAL INTELLIGENCE AGENCY FOLLOWED THE SAME PATH OF STAFF SERVICE AT THE PENTAGON AMONG THE NEARLY 20 CABINETLEVEL APPOINTEES 16 HAVE LAW DEGREES OR DOCTORATES AT LEAST FOUR LIKE MR CLINTON STUDIED IN ENGLAND AND A HALF DOZEN ATTENDED HARVARD YALE OR GEORGETOWN THE SAME SCHOOLS AS THE PRESIDENT AND VICE PRESIDENT GORE FOR MANY THAT ELITE EDUCATION HAS TRANSLATED INTO SUBSTANTIAL WEALTH AT A TIME WHEN AVERAGE AMERICANS HAVE SEEN LIVING STANDARDS STAGNATE SEVERAL OF MR CLINTON'S EARLY APPOINTEES MADE PERSONAL FORTUNES IN THE GET RICH 1980S THAT MR CLINTON RAN AGAINST AS A CANDIDATE ROBERT RUBIN THE NEW HEAD OF THE NATIONAL ECONOMIC COUNCIL HAS A STAKE IN GOLDMAN SACHS & CO THAT IS REPORTEDLY VALUED AT BETWEEN 50 MILLION AND 100 MILLION SEVERAL LAWYERS NOMINATED TO THE CABINET EARNED MORE 500000 LAST YEAR AND EVERY CABINET MEMBER EARNED MORE THAN 100000 LAST YEAR A FEAT MATCHED BY ONLY 25 OF ALL AMERICANS ACCORDING TO A CONGRESSIONAL BUDGET OFFICE ESTIMATE I'M WORRIED SAYS STUDS TERKEL THE ORAL HISTORIAN WHO HAS SPENT A CAREER CHRONICLING THE VOICES OF AVERAGE AMERICANS I'M NOT SAYING YOU NEED RALPH NADER BUT IS THERE SOMEONE IN THIS ADMINISTRATION WHO HAS AN IDEA OF THE NEEDS OF THE WORKING MAN OF ORDINARY PEOPLE WITHOUT CLOUT AS IF AWARE OF THIS MR CLINTON TOOK HEED OF THE LATE HOUSE SPEAKER SAM RAYBURN'S SALTY ASSESSMENT THAT KENNEDY'S BRAINY CAMELOT HAD FEW WHO HAD EVER RUN FOR SHERIFF THE NEW ADMINISTRATION IS LACED WITH FORMER MAYORS AND CONGRESSMEN WHO HAVE FACED VOTERS DIRECTLY AND THIS POLITICAL COMBAT HELPS TEMPER THEIR ELITISM SAYS AUTHOR DAVID HALBERSTAM I THINK THEY'RE LESS ARROGANT SAYS MR HALBERSTAM COMPARING THE CLINTON ADVISERS TO THE BEST AND THE BRIGHTEST OF HIS HISTORY OF THE KENNEDY YEARS CLINTON'S REALLY HAD A VERY DEMOCRATIC LIFE HE'S A DIFFERENT KIND OF ELITE IN THIS CONTEXT IT WAS PERHAPS FITTING THAT MR CLINTON BEGAN THE INAUGURAL WEEK AT MONTICELLO FOR HIS NEW ADMINISTRATION EMBODIES THE NATURAL ARISTOCRACY OF TALENTS THAT THOMAS JEFFERSON DREAMED OF TWO CENTURIES AGO THE CAREERS OF THE CLINTON ELITE ARE DIFFERENT FROM THOSE OF PAST ARISTOCRACIES BUILT ON LAND OR INHERITED WEALTH AND TO BE SURE SOME OF MR CLINTON'S MEN AND WOMEN HAVE SPENT CHUNKS OF THEIR WORKING LIVES IN JOBS SERVING THE UNDERPRIVILEGED FEDERICO PENA THE TRANSPORTATION SECRETARYDESIGNATE WORKED AS A LEGALSERVICES ATTORNEY AND ADVOCATE FOR MEXICANAMERICANS IN SOUTH TEXAS DONNA SHALALA NOMINATED AS SECRETARY OF THE HEALTH AND HUMAN SERVICES DEPARTMENT SERVED IN THE PEACE CORPS EVEN RON BROWN NOMINATED TO HEAD THE COMMERCE DEPARTMENT AND THE CONSUMMATE WASHINGTON LOBBYIST WORKED AS A NEW YORK WELFARE CASEWORKER LONG BEFORE COMMANDING A HIGH INCOME IRA MAGAZINER THE 45YEAROLD NAMED AS A SENIOR WHITE HOUSE ADVISER GREW UP IN A WORKINGCLASS FAMILY HE POCKETED 6 MILLION WHEN HE SOLD HIS BUSINESSCONSULTING FIRM IN 1986 BUT THEN STARTED ANOTHER COMPANY THAT SPENDS 75 OF ITS TIME DOING PUBLICPOLICY CONSULTING WORK FOR GOVERNMENT AND PRIVATE ORGANIZATIONS FREE OF CHARGE BUT THE CLINTON ELITE IS NONETHELESS AN ARISTOCRACY WITH IMMENSE MEANS AND A CANDO CERTAINTY ABOUT THE VALUE OF EDUCATION IN HIS BOOK THE WORK OF NATIONS LABOR SECRETARYDESIGNATE ROBERT REICH WROTE CONVENTIONAL ECONOMIC THEORY IS PREMISED ON THE ASSUMPTION OF DIMINISHING RETURNS BUT HUMAN CAPITAL OPERATES ACCORDING TO A DIFFERENT PRINCIPLE PEOPLE FORTUNATE ENOUGH TO HAVE HAD AN EXCELLENT EDUCATION FOLLOWED BY ONTHEJOB EXPERIENCE DOING COMPLEX THINGS CAN BECOME STEADILY MORE VALUABLE OVER TIME MAKING IT MORE DIFFICULT FOR OTHERS EVER TO CATCH UP EDUCATION ALONE CAN'T EXPLAIN THE WEALTH OF THIS NEW ELITE BUT THEIR SUCCESS UNDERSCORES THE GROWING WAGE GAP THAT BEGAN DIVIDING THE US LABOR FORCE AS MANUFACTURING JOBS DISAPPEARED THROUGH THE 1980S COLLEGE GRADUATES TODAY TYPICALLY EARN AS MUCH AS 50 MORE THAN THOSE OF THE SAME AGE WHO HAVE ONLY COMPLETED HIGH SCHOOL ACCORDING TO FRANK LEVY AN ECONOMICS PROFESSOR AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY THIS IS NEARLY TWICE THE 25 TO 30 PREMIUM OF THE 1950S AND 1960S IN THE 1980S THOSE WITH ADVANCED DEGREES MADE OUT PARTICULARLY WELL THE VERY TOP DID SPECTACULARLY SAYS LAWRENCE KATZ A HARVARD PROFESSOR WHO IS EXPECTED TO BECOME THE CHIEF ECONOMIST AT THE LABOR DEPARTMENT AMONG THOSE AT THE VERY TOP IS MR KATZ'S COLLEAGUE AND LIKELY BOSS MR REICH DISCLOSURE FORMS FILED BY MR REICH SHOW THAT HE SUPPLEMENTED HIS 75000 HARVARD SALARY WITH NUMEROUS SPEAKING ENGAGEMENTS BOOSTING HIS TOTAL 1992 INCOME TO NEARLY 540000 SIMILARLY ALICE RIVLIN SLATED TO BECOME THE DEPUTY DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET AUGMENTED HER 92000 SALARY FROM TEACHING AT GEORGE MASON UNIVERSITY WITH 136000 IN HONORARIUMS AND CONSULTING AND DIRECTORS FEES TREASURY SECRETARY LLOYD BENTSEN WHO GREW UP ON A DIRT ROAD WENT INTO THE INSURANCE BUSINESS DECADES AGO AND MADE MILLIONS OF DOLLARS HIS FINANCIAL DISCLOSURE FORM SHOWS HIS ASSETS NOW TOTAL AT LEAST 56 MILLION COMMERCE'S MR BROWN EARNED 580000 LAST YEAR FROM PATTON BOGGS & BLOW ALTHOUGH THE LAW FIRM SAYS HE PLAYED ONLY A LIMITED ROLE SINCE HE WAS ALSO ACTING AS CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE A JOB FOR WHICH HE WAS PAID ANOTHER 89000 MICKEY KANTOR NOMINATED TO BE THE US TRADE REPRESENTATIVE MADE MORE THAN 314000 FROM ANOTHER LAW FIRM MANATT PHELPS PHILLIPS & KANTOR RICHARD RILEY MR CLINTON'S PICK TO BE EDUCATION SECRETARY RECORDED INCOME OF MORE THAN 568000 LAST YEAR ATTORNEY GENERALDESIGNATE ZOE BAIRD MADE MORE THAN 500000 LAST YEAR AS GENERAL COUNSEL FOR AETNA LIFE & CASUALTY CO AND SHE AND HER HUSBAND HAVE A NET WORTH OF 23 MILLION WARREN CHRISTOPHER THE NEW SECRETARY OF STATE EARNED NEARLY 1 MILLION LAST YEAR FROM A LOS ANGELES LAW FIRM ULTIMATELY MR CLINTON'S FATE WILL DEPEND ON HOW HE GOVERNS NOT BY HOW FAT THE WALLETS OF HIS ADVISERS ARE PROF BURNHAM OF THE UNIVERSITY OF TEXAS POINTS OUT THAT THE MAN MOST ACCEPTED AS A GENUINE POPULIST FIGURE IN THE LAST CAMPAIGN WAS NONE OTHER THAN THE RICHEST ROSS PEROT WHAT PEOPLE WANT HE SAYS IS A SENSE THAT THEY ARE CONNECTED TO THE GOVERNMENT THE NOTION OF VIRTUAL REPRESENTATION FOR THE CLINTON ELITE TRYING TO ACCOMPLISH THIS IS MADE MORE DIFFICULT BY THE FACT THAT THEIR GENERATION HAS NOT HAD THE SAME SHARED EXPERIENCES AS THEIR PARENTS WHO LIVED THROUGH THE DEPRESSION AND WORLD WAR II THE MEN AROUND PRESIDENT KENNEDY WHETHER THEY HAD BEEN IN COMBAT OR NOT SAW THEMSELVES AS THE COMPANY COMMANDERS OF A GENERATION OF VETERANS BY COMPARISON VIETNAM WAS A DIVISIVE EXPERIENCE AND THERE IS NO EASY FRAMEWORK FROM WHICH TO CALL FOR SACRIFICE MR CLINTON SEEMS TO HAVE IMPOSED SOME STANDARDS THAT HE IS FINDING TOUGH TO MEET AT A DETROIT RALLY LAST FALL HE LAMBASTED THE LEVERAGED BUYOUTS OF THE 1980S IN WHICH THE PEOPLE THAT WERE IN THE MIDDLE SHUFFLING THE PAPER MADE OFF WITH MILLIONS OF DOLLARS AND THE AMERICAN PEOPLE GOT THE SHAFT YET WEEKS LATER HE APPOINTED AN ECONOMIC TEAM THAT INCLUDED LAWYERS AND WALL STREET FINANCIERS WHO HAD PROFITED BY JUST SUCH TRANSACTIONS MR CLINTON ALSO APPOINTED ELI SEGAL TO HEAD HIS NATIONAL SERVICE PROGRAM A WEALTHY LAWYER AND BUSINESSMAN MR SEGAL HAS A RESUME THAT DOESN'T LIST ANY PUBLIC SERVICE SUCH AS STINTS IN VISTA OR THE PEACE CORPS NOR SERVICE IN VIETNAM IN HIS INAUGURAL ADDRESS YESTERDAY MR CLINTON NEVER MENTIONED VIETNAM SPECIFICALLY BUT SPOKE OF HIS GENERATION AS ONE RAISED IN THE SHADOWS OF THE COLD WARAND IMPLICITLY THE ATOMIC BOMB THESE ARE THE CHILDREN OF A NUCLEAR AGE SAYS MR HALBERSTAM THE WRITER AND IN A NUCLEAR AGE THE DEFINITION OF PATRIOTISM CHANGED YOU DIDN'T FIGHT WORLD WAR II AGAIN YOU FOUGHT TRICKY POLITICAL WARS LIKE VIETNAM TRICKY POLITICAL WARS IN YUGOSLAVIA SOMALIA AND IRAQ MAY HOWEVER BE JUST WHAT LIES AHEAD FOR THE NEW ADMINISTRATION ALTHOUGH THE ANTICOMMUNISM CRUSADE OF KENNEDY'S ERA IS LESS A FORCE TODAY THERE IS RENEWED PRESSURE TO PROJECT AMERICA'S MORAL ORDER AND MILITARY MIGHT ABROAD WE WILL WORK TO SHAPE CHANGE LEST IT ENGULF US THE NEW PRESIDENT SAID YESTERDAY REFERRING TO PROBLEMS OVERSEAS BUT IF MR CLINTON WON ANY ELECTION MANDATE IT IS FIRST TO BRING CHANGE AT HOME THIS NEW WORLD HAS ALREADY ENRICHED THE LIVES OF MILLIONS OF AMERICANS WHO ARE ABLE TO COMPETE AND WIN IN IT HE SAID BUT WHEN MOST PEOPLE ARE WORKING HARDER FOR LESS AND WHEN MILLIONS OF POOR CHILDREN CANNOT EVEN IMAGINE THE LIVES WE ARE CALLING THEM TO LEAD WE HAVE NOT MADE CHANGE OUR FRIEND TODAY WE DO MORE THAN CELEBRATE AMERICA THE PRESIDENT DECLARED WE REDEDICATE OURSELVES TO THE VERY IDEA OF AMERICA AN IDEA TEMPERED BY THE KNOWLEDGE THAT BUT FOR FATE WE THE FORTUNATE AND THE UNFORTUNATE MIGHT HAVE BEEN EACH OTHER SEE RELATED LETTER LETTERS TO THE EDITOR JUST COMMON FOLKS BUT UNCOMMONLY SMART WSJ FEB 8 1993 9301210028 9302080091 930106 REVIEW & OUTLOOK EDITORIAL UNFINISHED HOMEWORK IN 1988 PRESIDENTELECT GEORGE BUSH WROTE THENLABOR SECRETARY ANN MCLAUGHLIN PRAISING HER FOR LIFTING A BAN ON WORKERS WHO MAKE GLOVES AND EMBROIDERY AT HOME HE WROTE I LOOK FORWARD TO THE NEXT STEP NAMELY ALLOWING HOMEWORKERS TO ALSO MAKE WOMEN'S APPAREL FOUR YEARS LATER PRESIDENT BUSH WILL LEAVE OFFICE WITH THE BAN STILL IN PLACE THAT IS UNLESS HE ACTS QUICKLY AND ISSUES A COMPROMISE RULE THAT WOULD EXPAND HOMEWORK OPTIONS WHILE TOUGHENING ENFORCEMENT OF OTHER LABOR LAWS SOME 15 OF WORKERS NOW DO SOME WORK AT HOME AND ALL OF IT IS LEGAL UNLESS THEY MAKE WOMEN'S CLOTHING IN 1942 THE GOVERNMENT BANNED HOMEBASED WORK IN SEVEN INDUSTRIES WHERE IT SAID ENFORCEMENT OF THE MINIMUM WAGE LAW WAS DIFFICULT SINCE THEN MILLIONS OF WOMEN HAVE ENTERED THE WORK FORCE HOMEWORK IS APPEALING TO OLDER PEOPLE AND THE DISABLED SINGLE MOTHERS FIND IT ATTRACTIVE BECAUSE THEY CAN EARN MONEY WITHOUT PAYING COMMUTING OR CHILD CARE COSTS DURING THE 1980S THE FEDERAL GOVERNMENT LIFTED THE BAN ON SIX OF THE SEVEN INDUSTRIES WITH GOOD RESULTS BUT HOMEWORKERS IN BY FAR THE LARGEST INDUSTRY WOMEN'S CLOTHING ARE STILL OUTLAWS THE ANACHRONISTIC BAN HASN'T ENDED HOMEWORK IT'S SIMPLY DRIVEN IT UNDERGROUND THE LABOR DEPARTMENT ESTIMATES THAT MORE THAN 20 OF THE CONTRACTORS WORKING FOR GARMENT MANUFACTURERS USE ILLEGAL HOMEWORKERS A PROPOSED RULE ON THE DESK OF LABOR SECRETARY LYNN MARTIN WOULD ALLOW THESE GARMENT CONTRACTORS TO APPLY TO LEGALLY HIRE HOMEWORKERS SO LONG AS THEY MET OTHER REGULATORY REQUIREMENTS MOST WOULD PROBABLY SIGN UP IF FOR NO OTHER REASON THAN TO LIFT THE THREAT OF A FEDERAL RAID OR INDICTMENT WHILE THE BAN ON HOMEWORK WOULD END PENALTIES AGAINST FIRMS THAT CONTINUED TO OPERATE OUTSIDE THE LAW WOULD BE TOUGHENED SUCH A REFORM WOULD BENEFIT BOTH CONSUMERS AND WORKERS SHOPPERS BENEFIT FROM THE LOWCOST HIGHQUALITY GARMENTS MADE BY US HOMEWORKERS WHO PROBABLY COULDN'T COMPETE WITH FOREIGN WORKERS IF THEY WERE DRIVEN INTO HIGHCOST FACTORIES WORKERS WOULD BENEFIT FROM A MORE OPEN LEGAL ENVIRONMENT WHERE THEIR CONCERNS COULD BE BETTER IDENTIFIED MANY HOMEWORKERS ARE IMMIGRANTS WHO SPEAK LITTLE ENGLISH HAVE NO TRANSPORTATION AND MUST LOOK AFTER SMALL CHILDREN IN THE DALLAS AREA THERE ARE MORE THAN 20000 HOMEWORKERS MAINLY FROM SOUTHEAST ASIA VIETNAMESE COMMUNITY LEADERS THERE OPPOSED THE GOVERNMENT'S CLOSING OF SOME HOMEWORK OPERATIONS LAST YEAR LOUANN NGUYEN A CLOTHING CONTRACTOR SAYS HER HOMEWORKERS TURNED DOWN AN OFFER OF FACTORY WORK THEY DIDN'T WANT TO COME INTO MY FACTORY BECAUSE THEY COULDN'T BRING THEIR CHILDREN AND WANTED TO GO WHEN THEY PLEASED SHOULD PRESIDENT BUSH ASK SECRETARY MARTIN TO ISSUE THE RULE LEGALIZING HOMEWORK BEFORE SHE LEAVES OFFICE PRESIDENT CLINTON COULD REVERSE SUCH A MOVE HIS UNION SUPPORTERS OPPOSE HOMEWORK BECAUSE IT IS DIFFICULT TO ORGANIZE A DECENTRALIZED WORK FORCE BUT MR CLINTON WILL ALSO KNOW THAT HOMEBASED WORK IS STRONGLY BACKED BY MANY WORKINGCLASS WOMEN IT'S AN OPTION FOR MANY DUALCAREER FAMILIES WHO DON'T MUCH WANT TO TURN OVER THEIR CHILDREN TO A DAY CARE CENTER THERE'S A CONSENSUS TODAY THAT GOVERNMENT SHOULD ENHANCE NOT IMPEDE FAMILY CHOICES IN WORK AND CHILD CARE COME TO THINK OF IT THAT'S AN ISSUE BILL CLINTON CAMPAIGNED ON ONCE OPENED HE MAY FIND IT DIFFICULT TO CLOSE THE DOOR AGAIN ON SUCH A USEFUL CHOICE FOR AMERICAN FAMILIES SEE RELATED LETTER LETTERS TO THE EDITOR DON'T LET HOME BECOME A SWEATSHOP WSJ FEB 8 1933 9301060069 9302050182 930205 MEDAREX IS CLEARED OF ANY MISCONDUCT BY DARTMOUTH PROBE NEW YORK AFTER MORE THAN FOUR MONTHS OF INVESTIGATION DARTMOUTH COLLEGE SAID THAT IT DETERMINED ALLEGATIONS OF MISCONDUCT AT MEDAREX INC A BIOTECHNOLOGY FIRM IT PARTLY OWNS WERE UNFOUNDED THE CHARGES LEVIED IN AN UNSIGNED LETTER LAST AUGUST HAD CREATED TURMOIL FOR MEDAREX AND DARTMOUTH AN IVY LEAGUE INSTITUTION IN HANOVER NH AT THE TIME MEDAREX PRINCETON NJ CANCELED A 7 MILLION SALE OF COMMON STOCK AND LAUNCHED AN INTERNAL INVESTIGATION DARTMOUTH WHICH OWNS 9 OF THE COMPANY LAUNCHED ITS OWN INQUIRY CHOOSING JAMES WYNGAARDEN FORMER DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH TO HEAD DARTMOUTH'S BLUERIBBON COMMISSION THAT INVESTIGATED MEDAREX THROUGHOUT THE INVESTIGATION DARTMOUTH'S STAKE IN MEDAREX RAISED QUESTIONS ABOUT ACADEMIA'S INVOLVEMENT IN BUSINESS ESPECIALLY ONE AS VOLATILE AS THE BIOTECHNOLOGY INDUSTRY FORMED IN 1987 BY A COALITION OF DARTMOUTH MEDICAL SCHOOL FACULTY MEMBERS AND ESSEX CHEMICAL CORP MEDAREX HAS YET TO BRING A PRODUCT TO MARKET IT NOW HAS A CANCER DRUG IN CLINICAL TRIALS DARTMOUTH HAS STEADFASTLY DEFENDED ITS POSITION STATING AT THE TIME THAT IT HAD PROPER PROCEDURES AND POLICIES FOR SAFEGUARDING INTEGRITY IN RESEARCH RESEARCH TRAINING AND OTHER RELATED ACTIVITIES IN A WRITTEN STATEMENT DARTMOUTH PRESIDENT JAMES O FREEDMAN SAID THE PANEL HAD FOUND THE ACCUSATIONS OF SCIENTIFIC MISCONDUCT MERITLESS MR FREEDMAN ADDED THAT THE INVESTIGATION DETERMINED THAT THE SCHOOL PERSONNEL WORKING AT THE COMPANY HAD ACTED IN GOOD FAITH AND NO EVIDENCE OF FISCAL IMPROPRIETY EXISTED THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING YESTERDAY MEDAREX SHARES CLOSED AT 9375 UP 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING THIS IS EXACTLY WHAT WE EXPECTED SAID DON DRAKEMAN PRESIDENT OF MEDAREX IF THERE WAS ANY REMAINING CLOUD OVER THIS COMPANY NOW IT'S BEEN TAKEN AWAY 9302050181 930205 SLUGGISH SALES COMPEL GM AND FORD TO IDLE 4 PLANTS NEXT WEEK DETROIT GENERAL MOTORS CORP AND FORD MOTOR CO PLAN TO IDLE A TOTAL OF FOUR PLANTS NEXT WEEK BECAUSE OF SLOW SALES GM SAID ITS LANSING MICH ASSEMBLY PLANT THAT BUILDS COMPACT CARS WILL BE IDLED FOR ONE WEEK BEGINNING MONDAY THE PLANT BUILDS OLDSMOBILE ACHIEVA PONTIAC GRAND AM AND BUICK SKYLARK MODELS SEPARATELY GM SAID IT HAS SCHEDULED OVERTIME THIS WEEK AND NEXT AT ITS SATURN ASSEMBLY PLANT IN SPRING HILL TENN AND AT EIGHT OF ITS TRUCK ASSEMBLY PLANTS FORD IS IDLING THREE PLANTS NEXT WEEK THE PLANTS MANUFACTURE THE COMPANY'S ESCORT CAR F SERIES TRUCK AND FORD RANGER COMPACT PICKUP TRUCK HOWEVER FORD HAS SCHEDULED OVERTIME AT SIX ASSEMBLY PLANTS THIS WEEK MEANWHILE CHRYSLER CORP SAID IT HAS SCHEDULED OVERTIME AT FIVE OF ITS ASSEMBLY PLANTS NEXT WEEK ALTOGETHER THE INDUSTRY IS SCHEDULED TO BUILD 118450 VEHICLES THIS WEEK UP FROM 108974 VEHICLES A YEAR AGO BUT DOWN FROM 131381 LAST WEEK 9302050180 930205 WHO'S NEWS INTEGRATED DEVICE TECHNOLOGY INC INTEGRATED DEVICE TECHNOLOGY INC SANTA CLARA CALIF JOHN BOLGER A PRIVATE INVESTOR WAS ELECTED A DIRECTOR AT THIS MAKER OF INTEGRATED CIRCUITS WHICH INCREASED ITS BOARD TO FIVE MEMBERS 9302050179 930205 SGSTHOMSON POSTS 3 MILLION 1992 PROFIT FIRST IN FIRM'S HISTORY SPECIAL TO THE WALL STREET JOURNAL PARIS FRANCOITALIAN MICROCHIP MAKER SGSTHOMSON MICROELECTRONICS NV POSTED A 3 MILLION PROFIT FOR 1992 THE FIRST YEAR IT HAS PULLED OUT OF THE RED IN 1991 THE COMPANY HAD A LOSS OF ABOUT 100 MILLION SGSTHOMSON SAID REVENUE LAST YEAR ROSE 12 TO 16 BILLION THE COMPANY IS A JOINT UNIT OF FRENCH STATECONTROLLED THOMSONCSF SA AND ISTITUTO PER LA RECONSTRUZIONE INDUSTRIALE THE ITALIAN STATE INDUSTRIAL HOLDING COMPANY PASQUALE PISTORIO SGSTHOMSON CHAIRMAN SAID THE OUTLOOK FOR 1993 IS SUBSTANTIALLY BETTER THAN IN 1992 BECAUSE OF A PICKUP IN THE US SEMICONDUCTOR MARKET AT A NEWS CONFERENCE MR PISTORIO ADDED THAT THE ASIAN AND PACIFIC MARKETS WHERE SGSTHOMSON IS ALSO ACTIVE REMAIN STRONG AS WELL WITH ITS MOVE INTO THE BLACK ON A FULLYEAR BASIS HE SAID THE COMPANY HAS PUT A CAP ON ITS RESTRUCTURING EFFORTS WHICH TRIMMED THE NUMBER OF INDUSTRIAL SITES TO 15 FROM THE 22 IT INHERITED IN 1987 SGSTHOMSON WAS FORMED THAT YEAR THROUGH THE MERGER OF THOMSON SEMICONDUCTEURS AND SGS MICROELETTRONICA MR PISTORIO SAID THE GROUP'S SHARE OF THE CHIP MARKET ROSE TO 27 LAST YEAR FROM 25 IN 1991 BUT THAT STILL TRAILS MR PISTORIO'S PERSONAL GOAL OF 5 COMPUTER SECTOR ANALYSTS REMAIN SKEPTICAL THAT THE FRANCOITALIAN CHIP MAKER CAN REACH THAT LEVEL WITHOUT A STRONG ALLIANCE PERHAPS EVEN A MERGER WITH ANOTHER CHIP MAKER WHILE THE GROUP ALREADY WORKS WITH SOME EUROPEAN ALLIES NOTABLY PHILIPS ELECTRONICS NV IN THE DOMAIN OF ADVANCED TECHNOLOGIES IT FAILED TO CEMENT TIES WITH SIEMENS AG OF GERMANY WHICH INSTEAD CHOSE INTERNATIONAL BUSINESS MACHINES CORP AS ITS MAIN ALLY CONCERNING FUTURE EXTERNAL LINKS MR PISTORIO SAID THEY WILL BE DICTATED BY MARKET CONDITIONS AND WILL LARGELY BE CONFINED TO SPECIFIC TECHNOLOGIES WE'LL ALWAYS STUDY THE OPPORTUNITIES IN STRATEGIC ALLIANCES HE SAID AS IN THE CASE WITH PHILIPS MR PISTORIO SAID SGSTHOMSON'S RESTRUCTURING COSTS HAVE TOTALED ABOUT 350 MILLION SINCE 1987 WHILE ABOUT 300 MILLION HAS BEEN INJECTED BY SHAREHOLDERS HE SAID THE GROUP'S DEBT LOAD SLIPPED TO A BIT MORE THAN 800 MILLION AT THE END OF 1992 FROM SLIGHTLY ABOVE 900 MILLION A YEAR EARLIER 9302050178 930205 WHO'S NEWS CHRYSLER CORP CHRYSLER CORP HIGHLAND PARK MICH THOMAS G DENOMME 53 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER WAS ELECTED TO THE BOARD OF DIRECTORS OF THIS AUTO MAKER INCREASING THE BOARD'S SIZE TO 15 MEMBERS MR DENOMME BECOMES THE COMPANY'S FOURTH EMPLOYEE DIRECTOR 9302050177 930205 THURSDAY'S MARKETS DJIA SOARS TO RECORD BONDS CLIMB INDUSTRIALS GAIN 4295 ON FOREIGN RATE CUTS AND RISING OPTIMISM BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE POWERED TO A RECORD FINALLY CATCHING UP WITH MOST OTHER MARKET MEASURES AS OPTIMISM ABOUT THE ECONOMY CONTINUED TO GROW A ROUND OF INTERESTRATE CUTS ABROAD HELPED FUEL THE STOCKMARKET RALLY LONGTERM BOND PRICES ROSE MODESTLY AND THE DOLLAR STRENGTHENED THE DOW INDUSTRIALS JUMPED 4295 POINTS OR 127 TO 341674 IN EXTREMELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ADVANCED 236 TO A RECORD 44956 BUT THE NASDAQ COMPOSITE INDEX ENDED WITH A TINY GAIN OF 018 TO A RECORD 70885 AFTER BEING DOWN MOST OF THE DAY PETER CANELO CHIEF INVESTMENT STRATEGIST AT COUNTY NATWEST SAID THE STOCK MARKET HAS CLEARLY SHIFTED GEARS WITH LARGER ECONOMICALLY SENSITIVE STOCKS SUPPLANTING THE LEADERSHIP OF SMALL STOCKS IN RECENT MONTHS WHEN YOU SEE THE NASDAQ COMPOSITE WEAK AND THE TECHNOLOGY LEADERS GETTING CRUSHED AT THE SAME TIME THAT THE DOW INDUSTRIALS ARE VERY STRONG IT IS OBVIOUS THAT THE BATON IS BEING PASSED MR CANELO SAID BUT HE WARNED THAT THE LEADERSHIP SHIFT ALSO REFLECTS THE LATE STAGES OF THE MARKET'S BULL CYCLE HE SEES THE DOW INDUSTRIALS HITTING 3500 BEFORE SLUMPING SIGNIFICANTLY ALL DURING THIS QUARTER ALAN BOND PRESIDENT AND CHIEF INVESTMENT OFFICER OF BOND PROCOPE CAPITAL MANAGEMENT BELIEVES THE DOW INDUSTRIALS HAVE MUCH FURTHER TO GO HE POINTS TO THE POSITIVE INTERESTRATE AND INFLATION CLIMATE IN THE US AND IMPROVING ECONOMIES OVERSEAS AS RATES FALL WORLDWIDE HE PREDICTS THE DOW INDUSTRIALS WILL HIT 3700 THIS YEAR THE STAGE IS SET FOR A DRAMATIC RALLY HE SAID THE BIG CAP STOCKS HAVE A WAYS TO GO TO CATCH UP WITH THE MOMENTUM THAT SMALLER STOCKS HAD OVERSEAS GERMANY'S CENTRAL BANK THE BUNDESBANK LOWERED KEY OFFICIAL INTEREST RATES EARLIER IN THE DAY THE BANK OF JAPAN CUT ITS DISCOUNT RATE LAST WEEK BRITAIN'S CENTRAL BANK LOWERED ITS MAIN LENDING RATE THE BUNDESBANK'S MOVE INTERPRETED BY MANY AS AN ATTEMPT TO ALLEVIATE SOME OF THE TURMOIL THAT HAS RECENTLY BEEN ROILING EUROPE'S EXCHANGERATE SYSTEM SENT THE DOLLAR HIGHER AGAINST THE MARK AND SEVERAL OTHER MAJOR EUROPEAN CURRENCIES IT ALSO CONTRIBUTED TO A 17 JUMP IN FRENCH STOCKS ON INVESTORS' HOPES THAT LOWER GERMAN INTEREST RATES WILL ALLOW OTHER COUNTRIES TO FOLLOW SUIT WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 016 TO 9359 SINCE EARLY LAST WEEK THE DOLLAR HAS RISEN 5 AGAINST THE MARK AND 8 AGAINST THE BRITISH POUND BECAUSE OF THE POOR STATE OF GERMANY'S ECONOMY THE RATE CUTS THERE HAD LONG BEEN ANTICIPATED BUT TRADERS AND INVESTORS WERE CAUGHT OFF GUARD BY THE TIMING WE EXPECT FURTHER RATE CUTS BUT MAINTAIN THAT THE GERMANS WILL BE CAUTIOUS IN THE NEAR TERM SAID ANDREW F JENNER DIRECTOR OF EUROPEAN EQUITIES AT COUNTY NATWEST INVESTMENT MANAGEMENT LTD IN LONDON BUT BY YEAR END GERMAN RATES WILL BE DOWN SIGNIFICANTLY POSSIBLY BY ANOTHER 25 PERCENTAGE POINTS AND WHILE HE PREDICTED THE DOLLAR WOULD KEEP RISING HE WAS LESS SURE ABOUT WHETHER LOWER EUROPEAN INTEREST RATES WOULD REFUEL STOCK MARKETS THE QUESTION IS WILL INTERESTRATE CUTS BE SUFFICIENT ENOUGH TO OFFSET THE CURRENT WEAKNESS IN CORPORATE PROFITS SAID MR JENNER IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 3465 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1341 ISSUES ADVANCED AND 623 FELL BOND PRICES GAINED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE A QUARTERPOINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 718 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16560 MARKS AND 12465 YEN COMPARED WITH 16450 MARKS AND 12436 YEN WEDNESDAY 9302050176 930205 DHL UNIT TO INVEST 125 BILLION IN PLAN TO EXPAND SERVICES BRUSSELS EXPRESS CARRIER DHL INTERNATIONAL LTD UNVEILED PLANS TO INVEST 125 BILLION OVER THE NEXT FIVE YEARS TO EXPAND ITS SERVICES THROUGHOUT EUROPE THE MIDDLE EAST AND ASIA THE INTERNATIONAL ARM OF DHL WORLDWIDE EXPRESS SAID IT IS EXPERIENCING A BOOM AS COMPANIES AROUND THE WORLD SEEK TO CUT DOWN ON INVENTORIES AND MOVE TO CENTRALIZED WAREHOUSING THE CLOSELY HELD COMPANY SAID REVENUE ROSE 20 IN 1992 AND IT EXPECTS SHIPMENTS TO GROW AT A SIMILAR RATE THIS YEAR COMPANIES ARE TRYING TO CONTROL THEIR DISTRIBUTION COSTS AND THE EXPRESS COMPANIES OFFER A WAY TO DO THAT SAID DHL INTERNATIONAL CHAIRMAN PATRICK LUPO DHL'S INVESTMENT PROGRAM TO BE SPREAD OVER THE 1993 TO 1997 PERIOD CALLS FOR SPENDING ABOUT 330 MILLION ON NEW BUILDINGS AND LAND 250 ON COMPUTER EQUIPMENT AND 200 MILLION ON HANDLING EQUIPMENT THE REST WILL BE SPREAD AMONG INVESTMENTS ON OFFICE EQUIPMENT VEHICLES AND AIRCRAFT MR LUPO SAID DHL INTERNATIONAL EXPECTS TO FINANCE THE ENTIRE INVESTMENT PROGRAM OUT OF REGULAR CASH FLOW DHL INTERNATIONAL EXPECTS THE EXPANSION EFFORTS TO ADD ABOUT 2500 EMPLOYEES TO ITS PAYROLL THE COMPANY CURRENTLY EMPLOYS ABOUT 30000 PEOPLE MR LUPO SAID THE NEW INVESTMENT WILL GO INTO VIRTUALLY EVERY MAJOR DHL CENTER INCLUDING GERMANY FRANCE DENMARK JAPAN TURKEY AND SAUDI ARABIA A BRAND NEW MIDDLE EAST DISTRIBUTION CENTER IS ALREADY UNDER CONSTRUCTION IN BAHRAIN THE US MARKET IS SERVED BY THE OTHER WING OF DHL WORLDWIDE EXPRESS DHL AIRWAYS LTD THE COMPANY DOES NOT DISCLOSE ITS EARNINGS BUT MR LUPO SAID WORLDWIDE REVENUE WAS 28 BILLION LAST YEAR AND THAT PROFIT MARGINS ARE ABOVE THE INDUSTRY AVERAGE OF 5 DHL INTERNATIONAL COMPRISES 75 OF DHL WORLDWIDE'S REVENUE 9302050175 930205 CANADIAN GROUP SAYS NEWSPRINT PRODUCTION JUMPED IN DECEMBER MONTREAL CANADIAN NEWSPRINT PRODUCTION JUMPED 285 IN DECEMBER FROM A YEAR EARLIER AND SHIPMENTS ROSE 206 CONTINUING A RECENT PATTERN OF STRONG INCREASES THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS PRODUCED 790000 METRIC TONS OF NEWSPRINT IN DECEMBER COMPARED WITH 615000 METRIC TONS A YEAR EARLIER THE CANADIAN NEWSPRINT INDUSTRY OPERATED AT 94 OF CAPACITY IN DECEMBER COMPARED WITH 97 IN NOVEMBER AND 74 A YEAR EARLIER THE ASSOCIATION SAID DECEMBER SHIPMENTS ROSE 206 TO 844000 METRIC TONS FROM 700000 A YEAR EARLIER DECEMBER SHIPMENTS TO THE US ROSE 251 TO 554000 METRIC TONS FROM 443000 METRIC TONS A YEAR EARLIER SHIPMENTS TO CANADIAN CUSTOMERS ROSE 161 TO 97000 METRIC TONS FROM 83000 AND SHIPMENTS TO OTHER MARKETS ROSE 111 TO 193000 METRIC TONS FROM 174000 A YEAR EARLIER CANADIAN NEWSPRINT MILLS' INVENTORIES WERE 351000 METRIC TONS AT THE END OF DECEMBER COMPARED WITH 405000 METRIC TONS AT THE END OF NOVEMBER AND 564000 A YEAR EARLIER THE ASSOCIATION SAID FOR THE YEAR CANADIAN PRODUCTION FELL 05 TO 8931000 METRIC TONS FROM 8976000 IN 1991 SHIPMENTS FOR THE YEAR ROSE 48 TO 9143000 METRIC TONS FROM 8728000 IN 1991 THE OPERATING RATE OR PRODUCTION AS A PERCENTAGE OF CAPACITY ROSE TO 89 IN 1992 FROM 87 IN 1991 SHIPMENTS AS PERCENTAGE OF CAPACITY AN ALTERNATIVE MEASURE OF THE OPERATING RATE ROSE TO 91 IN 1992 FROM 85 A YEAR EARLIER ASSOCIATION ECONOMIST KEVIN MCELHATTON SAID 9302050174 930205 INTERNATIONAL DAF GETS LOAN PACT FROM BANK CREDITORS DUTCH GOVERNMENT AMSTERDAM BANK CREDITORS AND THE DUTCH GOVERNMENT HAVE AGREED TO PROVIDE DAF NV THE FINANCIALLY STRAPPED TRUCK MAKER WITH AN EMERGENCY LOAN PACKAGE OF ABOUT 100 MILLION GUILDERS 54 MILLION BUT SURVIVAL OF THE ANGLODUTCH COMPANY REMAINS UNCERTAIN TWO DAYS AFTER DAF FILED FOR COURT PROTECTION FROM ITS CREDITORS COURTAPPOINTED ADMINISTRATORS HAVE STARTED DIVIDING THE COMPANY IN TWO FINANCIAL SOURCES SAID THE 100 MILLIONGUILDER BRIDGING LOAN SECURED BY DAF'S INVENTORIES WILL BENEFIT ONLY DAF'S OPERATIONS IN THE NETHERLANDS AND BELGIUM EXCLUDING DAF'S BRITISH SUBSIDIARY LEYLAND DAF LTD THE BRITISH SUBSIDIARY PRODUCING LIGHT TRUCKS AND VANS IS BEING OFFERED FOR SALE BY ITS BRITISH RECEIVERS A SPOKESMAN FOR THE RECEIVERS SAID ADEQUATE SHORTTERM FINANCING WAS ARRANGED FOR LEYLAND DAF WEDNESDAY BUT HE DECLINED TO DISCLOSE ANY DETAILS DAF OFFICIALS HOWEVER SAID NO BRIDGE LOAN HAD BEEN ARRANGED FOR LEYLAND DAF DAF'S DUTCH ADMINISTRATORS MEANWHILE ARE STRUGGLING TO RESCUE PART OF THE COMPANY'S CORE TRUCKMAKING OPERATIONS IN THE NETHERLANDS AND BELGIUM UNDER THAT PLAN DAF'S BANK CREDITORS AND POSSIBLY THE DUTCH GOVERNMENT COULD END UP OWNING THE SALVAGEABLE PARTS OF THE COMPANY CURRENTLY EUROPE'S SEVENTHLARGEST MAKER OF HEAVY TRUCKS DAF'S ENGINEERING AND RESEARCH OPERATIONS ARE STRONG AND ITS TRUCK CABINS ARE RATED FIRSTCLASS BY DRIVERS THE COMPANY ALSO INTRODUCED A SERIES OF MEDIUMWEIGHT TRUCKS THAT ARE SELLING WELL AND IT HAS A STRONG DISTRIBUTION NETWORK IN THE BENELUX AND THE UK MOST ANALYSTS HOWEVER HAVE LITTLE HOPE FOR DAF'S VAN AND LIGHTTRUCK LINES BASED IN THE UK THE COLLAPSE MONDAY OF A 18 BILLIONGUILDER BAILOUT PLAN FOR DAF HAS ERUPTED INTO A POLITICAL CONTROVERSY IN THE NETHERLANDS AND THE UK A TOTAL OF 13500 DAF JOBS ARE AT RISK IN ADDITION TO THE 20000 PEOPLE WORKING IN DAF'S EUROPEWIDE DEALER SERVICE 9302050173 930205 TRAVELERS CORP TO REPORT LOSS FOR 4TH QUARTER PLAN TO SELL FORECLOSURES TO RESULT IN CHARGES DEFICIT OF 589 MILLION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS CORP WILL REPORT A 589 MILLION FOURTHQUARTER LOSS FOLLOWING ITS DECISION TO BECOME THE FIRST MAJOR INSURER TO AGGRESSIVELY PURSUE THE SALE OF ITS FORECLOSED PROPERTIES THE COMPANY HAS 2 BILLION OF FORECLOSED REAL ESTATE ON ITS BOOKS ITS MOVE TO SELL THE ASSETS AT A DISCOUNT COULD SPUR OTHER INSURERS TO LIQUIDATE THEIR HOLDINGS SAID ANALYSTS WE'RE BEGINNING TO SEE A BREAKING OF THE LOGJAM IN THE INSURANCE INDUSTRY SAID SANFORD C BERNSTEIN ANALYST WESTON HICKS UNLIKE BANKS WHICH HAVE BEEN SELLING FORECLOSURES FOR MONTHS INSURERS HAVE SO FAR CHOSEN TO HOLD THEIR PROPERTIES TAKING THE POSITION THAT REAL ESTATE VALUES WILL EVENTUALLY RECOVER AFTER DEPRECIATION AND MAINTENANCE COSTS TRAVELERS HAS BEEN EARNING NOTHING ON ITS FORECLOSURES BY TAKING A BIG LOSS NOW AND SELLING ITS PROPERTIES TRAVELERS HOPES TO REINVEST THE SALES PROCEEDS MORE PROFITABLY AND EARN MORE MONEY GOING FORWARD THIS STRATEGY WHICH TAKES EARLY ADVANTAGE OF EMERGING LIQUIDITY DEVELOPING IN REAL ESTATE MARKETS IS PART OF OUR PLAN TO INCREASE FUTURE EARNINGS BY REDEPLOYING THE PROCEEDS FROM SALES INTO ASSETS WITH HIGHER CURRENT RETURNS SAID TRAVELERS CHAIRMAN EDWARD BUDD BETTER PROFITS COULD IMPROVE ITS FINANCIAL RATINGS WHICH IN TURN WOULD HELP IT SELL MORE INSURANCE THE MAJOR RATING AGENCIES YESTERDAY CONFIRMED THEIR RATINGS OF TRAVELERS BUT CAUTIONED IT MAY BE A WHILE BEFORE THEY UPGRADE THE INSURER THEY STILL HAVE A LOT OF REAL ESTATE SAID STANDARD & POOR'S ANALYST WILLIAM CAVANAGH IF THE MARKETS DETERIORATE FURTHER THEY COULD STILL BE AFFECTED HE SAID TRAVELERS SINGLEAPLUS CLAIMS PAYING ABILITY RATING COULD FALL IF PROFITS DON'T IMPROVE AS EXPECTED TO COVER ANTICIPATED LOSSES ON THE PROPERTY SALES TRAVELERS ADDED 735 MILLION TO ITS REAL ESTATE LOSS RESERVES PROMPTING A FOURTHQUARTER AFTERTAX CHARGE OF 485 MILLION THE COMPANY WILL ALSO TAKE A 79 MILLION AFTERTAX CHARGE FOR LEGAL FEES AND THE COST OF REGULATOR ASSESSMENTS TO BAIL OUT POLICYHOLDERS OF FAILED INSURERS THE FOURTHQUARTER LOSS OF 589 MILLION OR 538 A SHARE COMPARES WITH NET INCOME IN THE YEARAGO PERIOD OF 69 MILLION OR 64 CENTS A SHARE TRAVELERS' CHIEF INVESTMENT OFFICER ROBERT CRISPIN SAID THE NEW RESERVE MEANS TRAVELERS NOW VALUES ITS FORECLOSED REAL ESTATE AT 45 CENTS ON THE DOLLAR AN AMOUNT CONSISTENT WITH WHAT BANKS ARE VALUING THEIR REAL ESTATE HELD FOR SALE ON THE NEW YORK STOCK EXCHANGE YESTERDAY TRAVELERS WAS UNCHANGED AT 29875 THE QUESTION FOR TRAVELERS NOW IS HOW SOON DO THEY SELL THAT REAL ESTATE AND PUT THE MONEY BACK TO WORK SAID SALOMON BROTHERS ANALYST MICHAEL FRINQUELLI UNTIL THEY SELL THEY HAVEN'T DONE ANYTHING AT YEAR'S END TRAVELERS HARTFORD CONN OWNED 136 BILLION IN MORTGAGES AND REAL ESTATE OF WHICH 51 BILLION WAS PERFORMING BELOW EXPECTATIONS OF THE UNDERPERFORMING PORTFOLIO FORECLOSED PROPERTIES ACCOUNT FOR 23 BILLION OF THAT 2 BILLION IS FOR SALE MR CRISPIN SAID HE SAID TRAVELERS HOPES TO SELL MOST OF THAT WITHIN THE NEXT 18 MONTHS THE TRAVELERS ACTION IS CONSISTENT WITH THE ADOPTION OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS STATEMENT 923 WHICH REQUIRES PUBLICLY HELD INSURERS TO WRITE DOWN FORECLOSURES HELD FOR SALE TO THEIR MARKET VALUE TRAVELERS COULD AFFORD TO ADD TO ITS RESERVES BECAUSE LAST YEAR IT RAISED 14 BILLION IN CAPITAL INCLUDING A 7225 MILLION INVESTMENT MADE BY PRIMERICA CORP THE NEW RESERVE EFFECTIVELY USES UP ALL THE MONEY INVESTED BY PRIMERICA MR FRINQUELLI SAID THE INVESTMENT GAVE PRIMERICA A NEW YORK FINANCIAL SERVICES CONGLOMERATE 27 OF TRAVELERS STOCK FOR THE FULL YEAR TRAVELERS EXPECTS A LOSS OF 658 MILLION OR 651 A SHARE COMPARED WITH PROFIT OF 318 MILLION OR 297 A SHARE IN 1991 TRAVELERS WILL RELEASE EARNINGS WEDNESDAY 9302050172 930205 UK'S KINGFISHER SAYS IT IS HOLDING TALKS WITH DARTY OF FRANCE SPECIAL TO THE WALL STREET JOURNAL LONDON UK RETAILER KINGFISHER PLC SAID IT IS IN DISCUSSIONS WITH DARTY SA A FRENCH ELECTRICAL APPLIANCE RETAILER KINGFISHER'S STATEMENT FOLLOWED THE SUSPENSION OF TRADING IN DARTY AT THE PARIS BOURSE AND A NEWSPAPER REPORT SAYING KINGFISHER PLANNED TO BUY DARTY KINGFISHER DIDN'T DESCRIBE THE NATURE OF THE TALKS BUT SAID WE'RE NOT RULING ANYTHING OUT AND WE AREN'T GOING TO LIMIT OUR OPTIONS ALL POSSIBILITIES ARE BEING DISCUSSED ANALYSTS SAID A LIMITED ALLIANCE BETWEEN KINGFISHER AND DARTY COULD BE BENEFICIAL TO BOTH BUT A COMPLETE TAKEOVER OF DARTY BY KINGFISHER COULD PROVE A DISASTER SUCH AN ACQUISITION THEY SAID WOULD COST ANYWHERE BETWEEN 1 BILLION 6966 MILLION AND 16 BILLION AND WOULD BE TOO MUCH TO SWALLOW FOR KINGFISHER FOR AN UNCERTAIN STRATEGIC GAIN DARTY OFFICIALS WEREN'T AVAILABLE FOR COMMENT DARTY REGISTERS ANNUAL SALES OF ABOUT 85 BILLION FRANCS 152 BILLION FROM A CHAIN OF STORES THROUGHOUT FRANCE ITS MARKET VALUE IS JUST UNDER EIGHT BILLION FRANCS AND IT HAS ABOUT FIVE BILLION FRANCS IN DEBT THAT DEBT WAS CREATED BY A MESSY MANAGEMENT BUYOUT THAT ELICITED CHARGES OF INSIDER TRADING AND BROUGHT ABOUT A CONTINUING LAWSUIT 9302050171 930205 WHO'S NEWS MEDTRONIC INC MEDTRONIC INC MINNEAPOLIS DR EDITH W MARTIN 47YEAROLD VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF THE INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION OR INTELSAT WAS NAMED A DIRECTOR OF THIS MAKER OF MEDICAL DEVICES INCREASING BOARD MEMBERSHIP TO 14 9302050170 930205 BONTON'S JANUARY SALES ROSE YORK PA BONTON STORES INC SAID JANUARY SALES INCREASED 19 TO 147 MILLION FROM 124 MILLION SAME STORE SALES ROSE 53 SALES FOR THE 52 WEEKS ENDED JAN 30 ROSE 12 TO 3338 MILLION FROM 298 MILLION SAME STORE SALES ROSE 18 THE DEPARTMENT STORE CHAIN SAID 9302050169 930205 BUSINESS BRIEF NORTHWEST AIR POSTS 2072 MILLION LOSS FOR FOURTH QUARTER ST PAUL MINN NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SAID ITS FOURTHQUARTER NET LOSS WIDENED TO 2072 MILLION INCLUDING SPECIAL CHARGES FROM 792 MILLION A YEAR EARLIER EXCLUDING THE SPECIAL CHARGES FOR ACCOUNTING CHANGES AND FINANCIAL RESTRUCTURING NORTHWEST SAID ITS FOURTHQUARTER NET LOSS WAS 891 MILLION REVENUE FOR THE QUARTER WS UP SLIGHTLY TO 193 BILLION FROM 192 BILLION A YEAR EARLIER HOWEVER NORTHWEST HAS BEEN SMOTHERED UNDER HUGE DEBT SINCE IT WENT PRIVATE IN A 1989 36 BILLION BUYOUT PARTIALLY FINANCED BY THE DUTCH FLAG CARRIER KLM IN REPORTING A FISCAL THIRDQUARTER NET LOSS OF 4378 MILLION GUILDERS 2363 MILLION KLM SAID IT HAS WRITTEN OFF ITS INVESTMENT IN NORTHWEST KLM'S LOSS FOR THE QUARTER ENDED DEC 31 SWELLED FROM A LOSS OF 86 MILLION GUILDERS A YEAR EARLIER KLM SAID ITS FOREIGN UNITS RACKED UP AGGREGATE EXTRAORDINARY NET LOSSES OF 305 MILLION GUILDERS LARGELY BECAUSE OF THE NORTHWEST WRITEOFF KLM SAID THAT IT WOULD RETAIN ITS 20 STAKE IN NORTHWEST BUT THAT FUTURE WINGS HOLDINGS LOSSES SHOULD THEY OCCUR ARE NOT EXPECTED TO INFLUENCE THE KLM RESULTS KLM SAID ITS REVENUE IN THE LATEST QUARTER SLIPPED 1 TO 197 BILLION GUILDERS FOR THE YEAR NORTHWEST HAD A NET LOSS INCLUDING SPECIAL CHARGES OF 383 MILLION COMPARED WITH A LOSS OF 31 MILLION IN 1991 WITHOUT THE SPECIAL CHARGES NORTHWEST'S 1992 LOSS WAS 156 MILLION REVENUE FOR THE YEAR INCREASED 52 TO 812 BILLION 9302050168 930205 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK KEVIN G BYRNES REGION EXECUTIVE FOR CHASE MANHATTAN BANK'S LONG ISLAND DIVISION WHICH HAS 3 BILLION IN DEPOSITS WAS NAMED A SENIOR VICE PRESIDENT OF THE PARENT BANKING COMPANY 9302050167 930205 TECHNOLOGY CRAY COMPUTER HAD NARROWER LOSS IN FOURTH QUARTER BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL CRAY COMPUTER CORP'S LOSSES CONTINUED TO MOUNT IN THE FOURTH QUARTER INCREASING THE PRESSURE ON THE STRUGGLING SUPERCOMPUTER MAKER CRAY COMPUTER FOUNDED BY SUPERCOMPUTER PIONEER SEYMOUR CRAY POSTED A LOSS OF 126 MILLION OR 51 CENTS A SHARE IN THE QUARTER LAST YEAR COMPARED WITH 146 MILLION OR 61 CENTS A SHARE A YEAR EARLIER FOR THE YEAR THE COLORADO SPRINGS COLO COMPANY HAD A LOSS OF 505 MILLION OR 208 A SHARE 33 LOWER THAN THE 1991 LOSS OF 522 MILLION OR 250 A SHARE THE COMPANY SAID THE LOSS NARROWED IN 1992 DUE TO TIGHTER EXPENSE CONTROLS REVENUE FOR THE COMPANY WHICH HAS YET TO INTRODUCE ITS FIRST MACHINE TOTALED JUST 84000 IN BOTH THE CURRENT AND YEARAGO QUARTERS REVENUE FOR THE YEAR TOTALED 334000 COMPARED WITH 333000 IN 1991 THE CONTINUING LOSSES AND PRODUCT DELAYS RAISE SERIOUS QUESTIONS ABOUT HOW MUCH LONGER THE COMPANY CAN SURVIVE CRAY COMPUTER NOW HAS LOGGED LOSSES OF NEARLY 120 MILLION SINCE ITS INCEPTION IN 1989 AND CASH AND SHORTTERM INVESTMENTS DWINDLED TO JUST 276 MILLION AT YEAR'S END FROM 525 MILLION A YEAR EARLIER THE COMPANY HAS YET TO FIND A BUYER FOR THE 30 MILLION CRAY3 IN DECEMBER 1991 ITS ONLY CUSTOMER LAWRENCE LIVERMORE NATIONAL LABORATORY CANCELED ITS ORDER BECAUSE OF DEVELOPMENT DELAYS MR CRAY SAID IN A STATEMENT THAT THE CRAY3 HAS SUCCESSFULLY COMPLETED SOME BENCHMARK TESTING AND ACTIVITIES ARE INCREASING I AM LOOKING FORWARD TO THE COMPANY ENTERING THE MARKETPLACE AND DELIVERING THE FIRST CRAY3 HE SAID BUT CHIEF FINANCIAL OFFICER WILLIAM SKOLOUT DIDN'T SET A ROLLOUT DATE CRAY COMPUTER HOPES TO HAVE A DEMONSTRATION SITE FOR THE MACHINE ESTABLISHED BY THE END OF THE FIRST QUARTER MR SKOLOUT SAID SEPARATELY THE COMPANY SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING THAT IT REACHED A TENTATIVE 5 MILLION SETTLEMENT OF ALL SHAREHOLDER LAWSUITS STEMMING FROM THE LOSS OF THE LIVERMORE LABS CONTRACT CRAY SAID 1 MILLION WOULD BE PAID BY THE COMPANY A CHARGE THAT WAS RECORDED IN THE FOURTH QUARTER THE REST WILL BE PAID BY THE COMPANY'S DIRECTORS' AND OFFICERS' LIABILITY INSURER THE COMPANY SAID IT AND OTHER DEFENDANTS DIDN'T ADMIT ANY LIABILITY OR FAULT 9302050166 930205 WHO'S NEWS NOVELL INC NOVELL INC PROVO UTAH ELAINE R BOND 57YEAROLD CONSULTANT FOR CHASE MANHATTAN BANK WAS NAMED TO A VACANT SEAT ON THE BOARD OF THIS MAKER OF OPERATING SYSTEMS SOFTWARE 9302050165 930205 WHO'S NEWS KERRMCGEE CORP KERRMCGEE CORP OKLAHOMA CITY WAYNE T EWING WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF MARKETING FOR THE KERRMCGEE COAL CORP SUBSIDIARY OF THIS ENERGY AND CHEMICAL CONCERN HE WAS FORMERLY A CONSULTANT TO PEABODY COAL CO 9302050164 930205 ESPY EXPECTED TO URGE TOUGHER TESTING FOLLOWING TAINTEDHAMBURGER DEATHS BY GERRI WILLIS SPECIAL TO THE WALL STREET JOURNAL NEW YORK SECRETARY OF AGRICULTURE MIKE ESPY IS EXPECTED TO TELL A SENATE SUBCOMMITTEE TODAY THAT TOUGHER STANDARDS ARE NEEDED TO ENSURE THE SAFETY OF HAMBURGER MEAT SOLD AT FASTFOOD RESTAURANTS ON TUESDAY MR ESPY VISITED OLYMPIA WASH WHERE STATE OFFICIALS WERE CALLING FOR ACTION IN A FOODCONTAMINATION CASE THAT HAS RESULTED IN THE DEATH OF TWO CHILDREN AND THE ILLNESS OF 350 PEOPLE POSSIBLE RECOMMENDATIONS MR ESPY WILL MAKE TO THE SENATE RANGE FROM MANDATORY MICROBIOLOGICAL TESTING TO INCREASED MONITORING OF SLAUGHTERHOUSES BY FEDERAL AUTHORITIES ACCORDING TO A DEPARTMENT SPOKESMAN AND THOSE FAMILIAR WITH THE WASHINGTON FOOD CASE AGRICULTURE DEPARTMENT AND STATE HEALTH OFFICIALS HAVE CONCLUDED THAT THE ILLNESSES WERE CAUSED BY IMPROPERLY COOKED HAMBURGER PATTIES SOLD BY FOODMAKER INC THROUGH ITS JACKINTHEBOX CHAIN OF FASTFOOD OUTLETS AT ISSUE IS THE BACTERIA E COLI A PARTICULAR STRAIN OF WHICH CAN CAUSE SEVERE DIARRHEA AND ABDOMINAL ILLNESS NOW HOWEVER DEBATE ON THE CONTAMINATION CASE HAS TURNED TO HOW TO LIMIT THE INCIDENCE OF THE MICROBE BEFORE COOKING MARY BETH LANG A SPOKESWOMAN FOR WASHINGTON STATE'S AGRICULTURE DEPARTMENT SAID CURRENT TESTS REQUIRED BY THE FEDERAL AGRICULTURE DEPARTMENT CONSIST OF VISUAL INSPECTION AND A SMELL TEST MORE ACTIVE TESTING FOR BACTERIAL CONTENT HOWEVER ISN'T REQUIRED ALTHOUGH SOME COMPANIES DO SUCH MONITORING ON A VOLUNTARY BASIS THE AGENCY IS TRYING TO FIND SOME STEPS WE COULD TAKE RIGHT AWAY TO ADD A MEASURE OF SAFETY SAID JIM GREENE A SPOKESMAN FOR THE FOOD SAFETY AND INSPECTION SERVICE OF THE US AGRICULTURE DEPARTMENT HE SAID SUGGESTIONS INCLUDE INCREASED MONITORING OF SLAUGHTERHOUSES NEW LABELING REQUIREMENTS FOR BEEF AT THE RETAIL LEVEL AND A CHANGE IN THE AGRICULTURE DEPARTMENT'S AUTHORITY TO CONDEMN RAW MEAT CONTAINING BACTERIA EXPECTATIONS ARE HIGH HOWEVER THAT AGRICULTURE SECRETARY ESPY WILL CALL FOR MANDATORY MICROBIAL TESTING OF BEEF TOMORROW WHEN HE APPEARS BEFORE THE SENATE SUBCOMMITTEE ON AGRICULTURAL RESEARCH FORESTRY AND GENERAL LEGISLATION SUCH TESTING HAS BEEN CONSIDERED DIFFICULT BECAUSE OF THE TIME IT TAKES TO PROCESS TESTS BUT INNOVATIONS COULD ALLOW FOR SPEEDIER RESULTS FEDERAL INSPECTORS HAVE ALREADY USED SUCH TESTS IN OCTOBER SLAUGHTERHOUSE SPOT CHECKS CONDUCTED BY THE AGRICULTURE DEPARTMENT INCLUDED SUCH MICROBIAL TESTING IN AN ATTEMPT TO ESTABLISH A BENCHMARK FOR BACTERIAL LEVELS ACCORDING TO MR GREENE THE DEPARTMENT THROUGH THE 1980S HAD BEEN PUSHING FOR A STREAMLINED SYSTEM OF MEAT INSPECTION WHICH MR GREENE SAID WOULD BOOST DETECTION OF ABNORMAL TISSUE SUCH AS TUMORS OR ABSCESSES THE IDEA MET WITH CONSIDERABLE CONTROVERSY HOWEVER ONE OPPONENT REP NEAL SMITH DIOWA SAID HE OBJECTED TO THE PROPOSAL WHICH WAS TESTED IN SEVERAL PLANTS BECAUSE THE RATIO OF GOVERNMENT INSPECTORS TO COMPANY INSPECTORS WAS AS LOW AS 1 TO 5 MR SMITH FAVORS IRRADIATION FOR RIDDING THE NATION'S BEEF AND CHICKEN SUPPLY OF ILLNESSPRODUCING BACTERIA BUT SAID HE HOPED MR ESPY WOULD OPT TOMORROW FOR MICROBIAL TESTING J PATRICK BOYLE CHIEF EXECUTIVE OF THE INDUSTRY TRADE GROUP AMERICAN MEAT INSTITUTE IN A LETTER TO MR ESPY DATED WEDNESDAY SAID THE INDUSTRY WASN'T RESPONSIBLE FOR MOST FOODBORNE ILLNESSES HE SUGGESTED THE AGRICULTURE DEPARTMENT RESEARCH THE ORIGINS OF THE BACTERIA AS WELL AS STANDARDIZE HIGHER COOKING TEMPERATURES FOR HAMBURGER BEEF THE FOOD AND DRUG ADMINISTRATION SUGGESTED SUCH A STANDARDIZATION LAST WEEK 9302050163 930205 ATMOS TO REPORT INCREASE IN PROFIT FOR ITS 1ST PERIOD BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL ATMOS ENERGY CORP BENEFITING FROM RATE INCREASES AND REDUCED COSTS EXPECTS TO REPORT AT LEAST A 6 INCREASE IN FISCAL FIRSTQUARTER EARNINGS ITS CHAIRMAN SAID THE DALLAS NATURAL GAS DISTRIBUTION COMPANY AGREES WITH ANALYSTS' PROJECTIONS THAT NET INCOME WILL BE IN THE RANGE OF 5 MILLION OR 75 CENTS A SHARE TO 63 MILLION OR 90 CENTS A SHARE FOR ITS FIRST QUARTER ENDED DEC 31 SAID CHARLES K VAUGHN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER FOR THE YEAREARLIER QUARTER ATMOS HAD NET OF 47 MILLION OR 70 CENTS A SHARE REVENUE IS EXPECTED TO BE ABOUT FLAT WITH THE YEAREARLIER QUARTER'S 107 MILLION HE SAID MR VAUGHN ATTRIBUTED THE IMPROVEMENTS TO VIGOROUS COSTCONTROL MEASURES LOWER INTEREST EXPENSES AND SOME RATE INCREASES COSTS WERE CUT ACROSS THE BOARD FROM TRAVEL TO MAIL HE SAID SINCE 1984 ATMOS REDUCED ITS WORK FORCE BY 20 TO ITS PRESENT SIZE BY EARLY RETIREMENT INCENTIVES AND ATTRITION RATE INCREASES TOTALED ABOUT 87 MILLION DURING 1992 FOR THREE SERVICE AREAS BUT ONLY SLIGHTLY ABOVE HALF OF THOSE INCREASES WERE IN EFFECT FOR THE WHOLE QUARTER MR VAUGHN SAID ATMOS WHICH SERVES ABOUT HALF A MILLION CUSTOMERS IN TEXAS LOUISIANA AND KENTUCKY PLANS TO GROW BY EXPANDING ITS EXISTING MARKETS ACQUIRING NEW DISTRIBUTION SYSTEMS AND EXPANDING INTO NEW MARKETS SUCH AS NATURAL GAS VEHICLE FUELING STATIONS MR VAUGHN SAID MR VAUGHN SAID ATMOS IS CONFIDENT THAT NATURALGAS VEHICLE CONVERSIONS WILL ACCELERATE GIVEN THE ENVIRONMENTAL INCENTIVES THE COMPANY CURRENTLY HAS FOUR NATURALGAS FUELING FACILITIES IN TEXAS AND LOUISIANA ONE VEHICLE ON NATURAL GAS IS EQUIVALENT TO THREE HOMES THERE'S POTENTIAL HERE MR VAUGHN SAID MR VAUGHN RULED OUT DIVERSIFICATION INTO OTHER NATURAL GAS USES FOR THE NEAR FUTURE WE WANT TO STAY WITH WHAT WE KNOW BEST HE SAID BUT GEOGRAPHICAL POSSIBILITIES ARE WIDE OPEN WE WILL LOOK AT ANYTHING AS LONG AS IT ADDS VALUE TO OUR COMPANY AND PROMISES AN ACCEPTABLE RETURN SAID MR VAUGHN IT DOESN'T MATTER IF IT'S IN MASSACHUSETTS OR WASHINGTON STATE ATMOS HASN'T PURCHASED ANY NEW SYSTEMS SINCE THE ACQUISITION OF WESTERN KENTUCKY GAS CO IN 1987 THE NEW NATURAL GAS REGULATORY ENVIRONMENT ESPECIALLY THE FEDERAL ENERGY REGULATORY COMMISSION'S ORDER 636 WILL PRODUCE CHANGES FOR THE INDUSTRY SAID MR VAUGHN INTERSTATE PIPELINES ARE SUBJECT TO FERC RULES INTRASTATE PIPELINES ARE NOT BUT SO FAR OUR KENTUCKY OPERATIONS WHICH ARE SERVED BY INTERSTATE PIPELINES HAVE NOT BEEN AFFECTED HE SAID ATMOS'S OTHER SYSTEMS IN TEXAS AND LOUISIANA ARE SERVED BY INTRASTATE PIPELINES ORDER 636 IS AN EFFORT TO SEPARATE NATURAL GAS SERVICES INTO PRODUCTION TRANSMISSION STORAGE AND DISTRIBUTION 9302050162 930205 PIER 1 SALES RISE 14 FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FOURWEEK PERIOD ENDED SATURDAY INCREASED 14 TO 413 MILLION FROM 362 MILLION A YEAR EARLIER THE SPECIALTY FURNISHINGS AND LAWN AND GARDEN GOODS RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR ROSE 86 9302050161 930205 HONGKONG LAND SAYS IT INCREASED HOLDING IN TRAFALGAR HOUSE SPECIAL TO THE WALL STREET JOURNAL LONDON HONGKONG LAND HOLDINGS LTD PART OF THE JARDINE GROUP SAID IT RAISED ITS STAKE IN BRITISH ENGINEERING AND SHIPPING COMPANY TRAFALGAR HOUSE PLC TO 201 FROM 149 BY EXERCISING OPTIONS IT PURCHASED IN NOVEMBER THE OPTIONS WERE USED WEDNESDAY THE DAY THEY WERE TO EXPIRE TO BUY 36 MILLION ORDINARY AND A ORDINARY SHARES HONGKONG LAND STILL HAS OPTIONS THAT IT ALSO BOUGHT IN NOVEMBER AND THAT EXPIRE MAY 3 TO BUY AS MANY AS 67 MILLION ORDINARY OR A SHARES THAT WOULD RAISE ITS HOLDINGS TO 30 HONGKONG LAND BOUGHT ITS INITIAL 149 STAKE IN A DAWN RAID ON THE OPEN MARKET IT THEN MADE A PUBLIC OFFER FOR AN ADDITIONAL 15 OF TRAFALGAR HOUSE BUT FOUND NO TAKERS THE FAILED OFFER WAS HOSTILE BUT HONGKONG LAND WAS LATER GIVEN BOARD REPRESENTATION AT TRAFALGAR HOUSE HONGKONG LAND SAID IT NOW CONTROLS 1182 MILLION TRAFALGAR HOUSE ORDINARY SHARES AND 216 MILLION A ORDINARY SHARES TRAFALGAR HOUSE HAS 505 MILLION ORDINARY SHARES AND 168 MILLION A ORDINARY SHARES OUTSTANDING HONGKONG IS TRAFALGAR HOUSE'S LARGEST SHAREHOLDER AHEAD OF THE ABU DHABI INVESTMENT AUTHORITY'S 776 9302050160 930205 WHO'S NEWS CONTINENTAL SAVINGS OF AMERICA CONTINENTAL SAVINGS OF AMERICA SAN FRANCISCO BRIAN MINASIAN 38 YEARS OLD SENIOR VICE PRESIDENT AND DIRECTOR OF RETAIL BANKING WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER AT THIS SAVINGS AND LOAN 9302050159 930205 MONEY FUND ASSETS FELL BY 855 BILLION IN LATEST WEEK'S TALLY WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 855 BILLION TO 59084 BILLION FROM 59939 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 610 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 4362 MILLION TO 38363 BILLION THE TRADE GROUP SAID ASSETS OF 380 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 2117 MILLION TO 30190 BILLION ASSETS OF 230 RETAIL TAXEXEMPT FUNDS ROSE BY 6479 MILLION TO 8173 BILLION ASSETS OF THE 275 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 899 BILLION TO 20721 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 224 TAXABLE MONEY MARKET FUNDS FELL BY 1006 BILLION TO 18472 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 107 BILLION TO 2249 BILLION 9302050158 930205 CREDIT RATINGS STORAGE TECHNOLOGY CORP NEW YORK STANDARD & POOR'S CORP PLACED 145 MILLION IN STORAGE TECHNOLOGY'S SINGLEBPLUS RATED SUBORDINATED DEBT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE LOUISVILLE COLO COMPANY WHICH MAKES DISKARRAY DATA STORAGE SYSTEMS REPORTED A 77 MILLION LOSS IN THE FOURTH QUARTER ALONG WITH CONTINUED DELAYS IN ITS ICEBERG DISK STORAGE SYSTEM 9302050157 930205 REGULATORS ADOPT PLAN HELPING SOME BANKS TO MEET CAPITAL RULES WASHINGTON FEDERAL REGULATORS ADOPTED AN EARLIER PROPOSAL THAT COULD MAKE IT EASIER FOR SOME LARGE BANKS WITH MORTGAGESERVICING AND CREDITCARD OPERATIONS TO MEET CAPITAL REQUIREMENTS THE NEW RULE WHICH TAKES EFFECT MARCH 9 WILL ALLOW BANKS TO COUNT PURCHASED MORTGAGESERVICING RIGHTS AND PURCHASED CREDITCARD RELATIONSHIPS OR ACCOUNTS AS THE CAPITAL THEY MUST HOLD AS A PERCENTAGE OF ASSETS TOGETHER THE MORTGAGE AND CREDITCARD ASSETS CAN EQUAL 50 OF SOCALLED TIER 1 OR CORE CAPITAL BUT CREDITCARD RELATIONSHIPS CAN ACCOUNT FOR NO MORE THAN HALF OF THAT SUBTOTAL THE CHANGE LIBERALIZES THE TREATMENT OF INTANGIBLE ASSETS FOR MOST BANKS BUT REDUCES THE AMOUNT OF INTANGIBLE ASSETS THAT THRIFTS CAN COUNT AS CAPITAL THE NEW RULE ELIMINATES CURRENT REGULATORY DIFFERENCES IN THE TREATMENT OF INTANGIBLE ASSETS AND IMPOSES UNIFORM STANDARDS FOR THE FIRST TIME 9302050156 930205 ENTERTAINMENT STARS FADE AS LAS VEGAS BETS ON FAMILIES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS THIS SELFANOINTED ENTERTAINMENT CAPITAL OF THE WORLD IS CHANGING ITS ACT IN A CITY MADE FAMOUS BY SEQUINBEDECKED CROONERS AND TOPLESS SHOWGIRLS THE BIGGEST BUZZ IN TOWN IS CIRQUE DU SOLEIL THE SOPHISTICATED CANADIAN CIRCUS WITHOUT ANIMALS THAT'S PART THEATER AND PART ACROBATICS THE CIRCUS WHICH HAS IMPRESSED AUDIENCES NATIONWIDE WILL TAKE UP PERMANENT RESIDENCE AT THE NEW TREASURE ISLAND CASINO BEING BUILT BY MIRAGE RESORTS INC AND IS CURRENTLY PERFORMING NEXT DOOR AT THE MIRAGE DOWN THE STRIP TOURISTS CAN SEE SUCH MAINSTREAM ATTRACTIONS AS THE LIPPIZANER STALLIONS AND MEDIEVAL JOUSTING TOURNAMENTS OR THEY CAN PAY 7285 TO SEE ILLUSIONISTS SIEGFRIED & ROY MAKE AN ELEPHANT VANISH AND REAPPEAR IN A POLISHED HIGHTECH SHOW THAT COST MORE THAN 55 MILLION TO STAGE EVEN A FEW YEARS AGO SUCH FAMILYORIENTED LAVISHLY PRODUCED ACTS WERE UNHEARD OF IN A TOWN THAT BOASTED NUDES ON ICE AND THE LIDO DE PARIS BUT CHANGING CUSTOMER TASTES AND SKYROCKETING SHOW COSTS ARE FORCING OPERATORS TO RETHINK THE APPROACH THAT MADE THE CITY FAMOUS GAMBLERS USED TO LINGER IN CASINOS TO CATCH A GLIMPSE OF FRANK SINATRA SAMMY DAVIS JR AND THE REST OF THE RAT PACK BETWEEN TWICENIGHTLY SHOWS FROM 1969 TO 1976 ELVIS CONSISTENTLY PACKED THE LAS VEGAS HILTON WITH HORDES OF SLOTMACHINEPLAYING FANS SINGER ANNMARGRET AND COUNTLESS OTHER ENTERTAINERS LAUNCHED THEIR CAREERS FROM LAS VEGAS STAGES BUT THE CITY LATER DEVELOPED A REPUTATION AS A MARKET FOR HASBEEN ENTERTAINERS A PERCEPTION THAT ONLY RECENTLY HAS BEGUN TO FADE NOW HOWEVER MOST CASINOS CAN'T REGULARLY AFFORD TO PAY THE SALARIES DEMANDED BY TOPNAME TALENT THERE ARE SO FEW STAR SALOON SINGERS REMAINING WITH DRAWING POWER WHO WOULD BE WILLING TO COME TO LAS VEGAS AT A REASONABLE PRICE SAYS JOHN GIOVENCO PRESIDENT OF HILTON HOTELS CORP'S CASINO DIVISION THERE ARE NO NEW SINATRAS TONY BENNETTS OR PERRY COMOS WHO APPEAL TO A GREAT NUMBER OF PEOPLE MR GIOVENCO SAYS THE HILTON ONE OF THE FEW CASINOS THAT STILL HAVE A STAR POLICY MAY SWITCH TO AN INHOUSE PRODUCTION SHOW OR OTHER ATTRACTION DESPITE A LINGERING STEREOTYPE AS THE MECCA OF CAMP THERE IS STILL A BOYLESQUE SHOW ON THE STRIP LAS VEGAS IS ONE OF THE NATION'S BIGGEST MARKETS FOR LIVE ENTERTAINMENT FORTYONE PERCENT OF AN ESTIMATED 22 MILLION VISITORS ATTENDED SHOWS IN THE 12 MONTHS ENDED JUNE 30 ACCORDING TO THE LAS VEGAS CONVENTION AND VISITORS AUTHORITY OF THOSE WHO FLOCK TO CASINO SHOWS 34 WATCHED BIGNAME ENTERTAINERS AND THE SAME PERCENTAGE ATTENDED LAS VEGASSTYLE PRODUCTION SHOWS THE AUTHORITY SAYS THEIR SPENDING ON SHOWS IS IN THE MID60 RANGE ON THE TYPICAL VISIT TO LAS VEGAS A FIGURE THAT MAY INCLUDE MORE THAN ONE SHOW ECONOMICS DICTATE MUCH OF THE CHANGING SCENE ALLAN BREGMAN PRESIDENT OF CAESARS WORLD INC'S ENTERTAINMENT UNIT NOTES THAT HUNDREDS OF STADIUMS HAVE POPPED UP NATIONWIDE OVER THE PAST DECADE ALLOWING ENTERTAINERS TO MAKE MILLIONS OF DOLLARS ON A SINGLE TOUR THE AVERAGE LAS VEGAS SHOW VENUE WITH ABOUT 900 TO 1200 SEATS CAN'T COMPETE WITH A 20000SEAT STADIUM WHERE A POPULAR ARTIST CAN PULL IN 200000 OR MORE A NIGHT AND EVEN WITH STREAMLINED STAR POLICIES SAY 35 WEEKS A YEAR INSTEAD OF THE FORMER 50 BIG CASINOS HAVE BEEN KNOWN TO LOSE AS MUCH AS 10 MILLION A YEAR ON SUCH TOPNAME ENTERTAINERS AS BILL COSBY HARRY CONNICK JR AND MR SINATRA EXCEPT FOR SPECIAL EVENTS SUCH AS NEW YEAR'S EVE CASINO EXECUTIVES ARE INCREASINGLY IMPATIENT WITH ACTS THAT CAN'T EVEN COME CLOSE TO BREAKING EVEN ENTERTAINMENT WASN'T AN END IN ITSELF BUT SOMETHING INTENDED TO BRING IN BUSINESS SAYS PHIL HEVENER A COLUMNIST AND COOWNER OF A LOCAL ENTERTAINMENT MAGAZINE BUT THAT MAY BE CHANGING RICHARD STURM A SENIOR EXECUTIVE OVERSEEING ENTERTAINMENT FOR MGM GRAND INC'S BILLIONDOLLAR CASINO AND THEME PARK NOW UNDER CONSTRUCTION NOTES THAT CUSTOMERS CAN SEE STARS ON TELEVISION OR LIVE IN THEIR HOMETOWNS WHAT'S BECOME EXCLUSIVE TO THE CITY NOW ARE MAJOR PRODUCTION SHOWS SUCH AS SIEGFRIED & ROY MR STURM SAYS MGM GRAND PLANS SUCH A SPECTACLE IN ADDITION TO A SHOW AREA AND A 19000SEAT ARENA FOR BOXING CONCERTS AND OTHER SUCH EVENTS BUT THE OLDSTYLE LAS VEGAS SHOW IS A DYING BREED AS THE TOWN DRAWS MORE FAMILY TRADE AUDIENCES AREN'T ALWAYS KEEN ON SEEING ADULTORIENTED SHOWS SO CASINOS WILL BE DOING A LOT OF EXPERIMENTING TO SEE JUST WHAT WILL WORK WITHOUT BREAKING THEIR BANKS INDEED THE MAJOR RESORTS UNDER CONSTRUCTION ARE CASTING THE ENTERTAINMENT NET MUCH WIDER BY VENTURING INTO THEME AREAS HIGHTECH AMUSEMENT ATTRACTIONS AND OTHER DRAWS IN A SIGN OF THE CHANGING TIMES ONE OF BROADWAY'S TOP THEATERPRODUCTIONTECHNOLOGY COMPANIES SHOWTECH INC HAS SET UP SHOP HERE THE FIRM WHOSE STAGE CREDITS INCLUDE MISS SAIGON STARLIGHT EXPRESS AND THIS TOWN'S SIEGFRIED & ROY EXTRAVAGANZA IS CURRENTLY WORKING ON MIRAGE RESORTS' NEW CASINO AND HOPES TO WIN MORE BUSINESS AS LOCAL ENTERTAINMENT HORIZONS EXPAND STEPHEN A WYNN MIRAGE RESORTS CHAIRMAN SAYS HIS NEW CASINO WILL BOAST TENS OF MILLIONS OF DOLLARS OF ATTRACTIONS INCLUDING MOCK SEA BATTLES THAT WILL BE FREE TO THE PUBLIC THE MGM GRAND PROJECT WILL INCLUDE A CITY OF OZ THEME PARK AND OTHER FAMILYORIENTED ATTRACTIONS CIRCUS CIRCUS ENTERPRISES INC'S PYRAMIDSHAPED LUXOR CASINO PROJECT IS SPENDING ABOUT 15 OF ITS ESTIMATED 300 MILLION CONSTRUCTION BUDGET ON HIGHTECH INTERACTIVE ATTRACTIONS WITH EXPLORATIONADVENTURE STORY LINES IT'S THE MOST EXPENSIVE PART OF THE BUILDING SAYS GLENN SCHAEFFER PRESIDENT LAS VEGAS EXECUTIVES CONCEDE THAT THERE'S SOME RISK TO THE NEW VENTURES MR WYNN SAYS TIME WILL TELL WHETHER CIRQUE DU SOLEIL HAS STAYING POWER IN A MARKET ACCUSTOMED TO DANCING ORANGUTANS AND JIGGLING SHOWGIRLS OTHERS WORRY PRIVATELY THAT THE NEW BIGBUCK ATTRACTIONS MAY RAISE THE ANTE TOO HIGH FOR SMALLER CASINO OPERATORS AND A FEW CASINOS ARE BUCKING THE TREND SOME ARE UPDATING TRIEDANDTRUE FORMULAS NOT WORRIED THAT THEY WON'T DRAW FAMILIES THE STARDUST SPENT 12 MILLION ON ENTER THE NIGHT A NEW EXTRAVAGANZA THAT INCLUDES PLENTY OF BARE SKIN AMID THE NEW MUSIC AND ACTS WE WANTED AN ADULT SHOW WITH AN ADULT KIND OF SEXY FEEL TO IT SAYS BOB BOUGHNER CHIEF OPERATING OFFICER OF CLOSELY HELD BOYD GROUP WHICH OWNS THE STARDUST THE STARS' DESERT INN ALSO IS TAKING A CONTRARIAN APPROACH BY SPENDING MILLIONS TO SNAP UP SUCH HEADLINE ENTERTAINERS AS MR SINATRA LIZA MINNELLI BARRY MANILOW PAUL ANKA AND DON RICKLES EXECUTIVES BELIEVE THE POLICY WILL BURNISH AN IMAGE AS A BOUTIQUE HOTEL FOR HIGH ROLLERS SETTING IT APART IN A CHANGING MARKET WE'RE THE LAST VESTIGE OF WHAT LAS VEGAS WAS SAYS BURTON M COHEN A 30YEAR LAS VEGAS VETERAN AND THE CASINO'S PRESIDENT ONE THING HASN'T CHANGED THE CONSUMER IS STILL AWESTRUCK TO SEE A SUPERSTAR IN PERSON 9302050155 930205 FAMILY LEAVE BILL IS PASSED BY THE SENATE BY CATHY TROST AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONGRESS MOVED TOWARD FINAL APPROVAL OF A LANDMARK BILL REQUIRING LARGER COMPANIES TO GIVE WORKERS UNPAID LEAVE FOR FAMILY AND MEDICAL EMERGENCIES BRINGING PRESIDENT CLINTON A STEP CLOSER TO FULFILLING HIS CAMPAIGN VOW TO HELP AMERICA'S WORKING FAMILIES SENATE APPROVAL CAME ON A 7127 ROLL CALL VOTE AND THE HOUSE DEMOCRATIC LEADERSHIP PREPARED LAST NIGHT TO SEND THE BILL ON TO PRESIDENT CLINTON THOUGH PAST CONGRESSES HAVE TWICE APPROVED SIMILAR MEASURES FORMER PRESIDENT BUSH'S VETOES WERE SUSTAINED IN EACH CASE THIS TIME HOWEVER A SUPPORTIVE DEMOCRAT IN THE WHITE HOUSE INTENDS TO SIGN THE BILL THOUGH RECENT POLLS SHOWED SUCH LEGISLATION WAS POLITICALLY POPULAR AMONG A LARGE MAJORITY OF AMERICANS VICTORY WAS ACHIEVED ONLY AFTER EIGHT YEARS OF CONGRESSIONAL DEBATE IN THE MEANTIME NUMEROUS CHINKS APPEARED IN THE MEASURE BECAUSE OF COMPROMISES ADVOCATES ARGUED THAT A NATIONAL POLICY OF PARENTING AND MEDICAL LEAVES FOR WORKERS IN LARGE COMPANIES WOULD HELP FAMILIES SURVIVE CRISES WITHOUT LOSING THEIR JOBS THEY PORTRAYED IT AS A LOWCOST WAY TO EASE THE TENSIONS CAUSED BY THE SURGE OF WOMEN PARTICULARLY MOTHERS OF YOUNG CHILDREN INTO THE WORK FORCE AND THE INCREASING RESPONSIBILITIES SHOULDERED BY BOTH MEN AND WOMEN FOR CHILDREN AND ELDERLY RELATIVES THE PUSH FOR SUCH JOBPROTECTED POLICIES INTENSIFIED DURING THE RECESSION AND MANY SUPPORTERS INCLUDING LABOR SECRETARY ROBERT REICH HAVE CALLED THE LEGISLATION A MINIMUM FIRST STEP IN MAKING WORKPLACES MORE HUMANE IN FAMILY EMERGENCIES NO LONGER WILL A PARENT BE FORCED TO CHOSE BETWEEN CARING FOR A SICK CHILD AND LOSING A JOB SAID SEN CHRISTOPHER BOND R MO THE WORKPLACE IS CHANGING BUT CRITICS IN THE BUSINESS COMMUNITY WAGED A FIERCE BATTLE AGAINST A FEDERAL LAW ARGUING THAT SUCH BENEFITS SHOULD BE OFFERED VOLUNTARILY THEY WARNED THAT FORCING COMPANIES TO GIVE SUCH LEAVES WOULD INCREASE COSTS CUT BENEFITS TO OTHER EMPLOYEES AND LEAD ULTIMATELY TO OTHER BURDENSOME GOVERNMENTMANDATED MEASURES THERE ARE FEARS TOO THAT THE PLAN WILL BE BROADENED LATER TO INCLUDE SMALL COMPANIES IT'S A DISASTER SAID SEN ROBERT DOLE R KAN IT'S ANOTHER MANDATE BY THE FEDERAL GOVERNMENT AND ANOTHER TAX ON THE SYSTEM MEANWHILE MANY BUSINESSES AND STATES MOVED OUT IN FRONT OF CONGRESS OVER THE YEARS AND SOME BIG COMPANIES HAVE ALREADY ESTABLISHED LEAVE POLICIES FOR THEIR EMPLOYEES SOME MORE GENEROUS THAN THE FEDERAL MEASURE AND A NUMBER OF STATES HAVE PASSED SIMILAR LEGISLATION UNDER THE VERSIONS PASSED BY BOTH THE HOUSE AND SENATE EMPLOYERS WITH MORE THAN 50 EMPLOYEES WOULD BE REQUIRED TO GUARANTEE JOBS AND PROVIDE HEALTH BENEFITS TO WORKERS DURING UP TO 12 WEEKS OF UNPAID LEAVE AFTER CHILDBIRTH OR ADOPTION TO CARE FOR A SERIOUSLY ILL CHILD OR A SERIOUSLY ILL SPOUSE OR PARENT OR AN EMPLOYEE'S OWN SERIOUS HEALTH CONDITION DURING ANY 12MONTH PERIOD THE MEASURE COVERS ABOUT 5 OF US COMPANIES AND ABOUT HALF OF ALL EMPLOYEES THE LEGISLATION WAS DELAYED BY SEVERAL DAYS WHEN REPUBLICANS SOUGHT TO USE IT AS A VEHICLE TO DEBATE PRESIDENT CLINTON'S INTENTION TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY PASSAGE OF THE FAMILY LEAVE LEGISLATION REPRESENTS A SIGNIFICANT VICTORY FOR MR CLINTON AFTER A SERIES OF POLITICAL BLUNDERS TO SHOW THE ADMINISTRATION'S COMMITMENT TO THE LEGISLATION VICE PRESIDENT ALBERT GORE JR PRESIDED OVER THE SENATE FOR THE FINAL VOTE THE LAW WOULD GO INTO EFFECT SIX MONTHS AFTER IT IS SIGNED BY MR CLINTON LAWMAKERS IN BOTH CHAMBERS FENDED OFF AMENDMENTS DESIGNED TO WEAKEN THE BILL OR TO PUSH DISPUTES OVER THE BILL INTO ARBITRATION RATHER THAN THE COURTS THE GENERAL ACCOUNTING OFFICE ESTIMATED THAT THE LEGISLATION WOULD ADD ABOUT 990 PER WORKER ANNUALLY TO THE COST OF BENEFITS A TINY PORTION OF THE ROUGHLY 3500 THAT COMPANIES PAY FOR EACH EMPLOYEE IN MEDICAL BENEFITS EACH YEAR BUT SOME CRITICS ARGUED THAT THE COSTS COULD BE HIGHER THE LEGISLATION WHICH WAS CONCEIVED AND PUSHED BY A COALITION OF ACTIVIST GROUPS INCLUDING LABOR AND WOMEN ORIGINALLY WOULD HAVE REQUIRED EMPLOYERS TO GIVE ELIGIBLE WORKERS AS MANY AS 18 WEEKS OF UNPAID LEAVE AFTER THE BIRTH OR ADOPTION OF A CHILD OR DURING THE SERIOUS ILLNESS OF A CHILD OR PARENT AND 26 WEEKS OF UNPAID MEDICAL LEAVE ONLY COMPANIES WITH FEWER THAN 15 EMPLOYEES WERE EXEMPTED BUT THE MEASURE WAS GRADUALLY WATERED DOWN ATTEMPTS LAST YEAR TO MOLLIFY REPUBLICANS CONCERNED WITH ITS IMPACT ON BUSINESS RESULTED IN LEGISLATION COBBLED TOGETHER BY SENS BOND AND CHRISTOPHER DODD D CONN THAT WAS DESIGNED TO BE VETOPROOF BUT PRESIDENT BUSH'S SECOND VETO OF THE BILL PREVAILED AND SUBSEQUENT ATTEMPTS BY SOME OF THE MORE LIBERAL MEMBERS IN BOTH CHAMBERS TO MAKE THE BILL BROADER THAN THE CURRENT MEASURE WERE UNSUCCESSFUL THE CURRENT LEGISLATION APPLIES TO ALL COMPANIES WITH 50 OR MORE EMPLOYEES WITHIN A 75MILE RADIUS AND IT COVERS EMPLOYEES OF NONPROFIT ORGANIZATIONS AND GOVERNMENT ENTITIES INCLUDING CONGRESS UNDER OTHER PROVISIONS EMPLOYERS CAN EXEMPT KEY EMPLOYEES OR THEIR HIGHESTPAID 10 WHOSE LEAVE WOULD CAUSE ECONOMIC HARM TO THE BUSINESS EMPLOYERS CAN ALSO 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 AND EMPLOYERS MAY REQUIRE A SECOND MEDICAL OPINION A SERIOUS HEALTH CONDITION IS DEFINED AS THE EMPLOYEE NEEDING ONGOING CARE AND BEING UNABLE TO PERFORM THE JOB OR THAT THE EMPLOYEE IS NEEDED TO CARE FOR THE ILL FAMILY MEMBER AN EMPLOYER MAY SUBSTITUTE AN EMPLOYEE'S ACCRUED PAID LEAVE FOR ANY PART OF THE 12WEEK PERIOD OF FAMILY LEAVE AN EMPLOYEE IS REQUIRED TO PROVIDE 30 DAYS' NOTICE FOR FORSEEABLE LEAVES FOR BIRTH ADOPTION OR PLANNED MEDICAL TREATMENT 9302050154 930205 AMGEN NET INCOME MORE THAN DOUBLED IN FOURTH QUARTER THOUSAND OAKS CALIF AMGEN INC'S FOURTHQUARTER NET INCOME MORE THAN DOUBLED TO 1338 MILLION OR 91 CENTS A SHARE BOLSTERED BY 771 MILLION FROM A LEGAL AWARD EXCLUDING THE AWARD AND SOME SMALL CHARGES PERSHARE EARNINGS WERE 59 CENTS IN LINE WITH ANALYSTS' EXPECTATIONS SAID LOWELL SEARS ACTING CHIEF FINANCIAL OFFICER THE AFTERTAX EFFECT OF THE LEGAL AWARD WAS 509 MILLION BUT THE MOST PROMINENT THING ABOUT THE QUARTER AND THE YEAR IS THAT AMGEN BECAME THE FIRST BIOTECH COMPANY TO EXCEED 1 BILLION IN ANNUAL PRODUCT REVENUE MR SEARS SAID WE'RE QUITE PROUD OF THAT ACCOMPLISHMENT INCLUDING SMALL CONTRIBUTIONS FROM CORPORATE PARTNERS AND ROYALTY INCOME AMGEN'S 1992 REVENUE SOARED 60 TO 109 BILLION FROM 682 MILLION FOURTHQUARTER REVENUE ROSE 47 TO 3082 MILLION FROM 210 MILLION THE LEGAL AWARD REFLECTED AMGEN'S VICTORY IN THE SECOND PART OF A PROTRACTED DISPUTE WITH JOHNSON & JOHNSON OVER A 1985 MARKETING AGREEMENT A PRIVATE ARBITRATION JUDGE AWARDED ABOUT 89 MILLION TO AMGEN IN SEPTEMBER IN THE FIRST PART OF THE CASE DECIDED IN JUNE 1991 HE ORDERED AMGEN TO PAY JOHNSON & JOHNSON 164 MILLION MR SEARS SAID THAT AMGEN DEFERRED PART OF ITS AWARD TO COVER FURTHER RESEARCH EXPENSES FOR A HEPATITIS B VACCINE AND INTERLEUKIN II AMONG OTHER MATTERS THE DISPUTED MARKETING AGREEMENT INVOLVED RIGHTS TO THE DEVELOPMENT OF THE TWO PRODUCTS IN THE 1991 FOURTH QUARTER AMGEN POSTED NET INCOME OF 60 MILLION OR 41 CENTS A SHARE FOR THE FULL YEAR NET INCOME JUMPED MORE THAN THREEFOLD TO 3576 MILLION OR 243 A SHARE FROM 979 MILLION OR 67 CENTS A SHARE AMGEN SHARES WERE QUOTED AT 5975 A SHARE UP 250 IN NATIONAL OVERTHECOUNTER TRADING THE EARNINGS REPORT WAS RELEASED AFTER THE CLOSE OF TRADING 9302050153 930205 ALEXANDER & BALDWIN UNIT JOB SEATTLE MATSON NAVIGATION CO SAID IT CONTRACTED WITH TODD PACIFIC SHIPYARDS CORP TO MODIFY TWO OF ITS CONTAINER SHIPS THE SS MAUI AND THE SS KAUAI IN A DEAL VALUED AT MORE THAN 20 MILLION TODD PACIFIC IS A UNIT OF TODD SHIPYARDS CORP OF SEATTLE MATSON A WHOLLY OWNED SUBSIDIARY OF ALEXANDER & BALDWIN INC IN HONOLULU SAID THE CONTRACT WILL CREATE 250 JOBS AT TODD'S SEATTLE SHIPYARD 9302050152 930205 FINANCING BUSINESS NATIONAL FUEL GAS CO NATIONAL FUEL GAS CO BUFFALO NY SOLD 50 MILLION OF 66 MEDIUMTERM NOTES DUE FEBRUARY 2000 THE SALE WAS MADE PURSUANT TO A SHELF REGISTRATION FILED IN JANUARY 1992 WITH THE SECURITIES AND EXCHANGE COMMISSION GOLDMAN SACHS & CO HANDLED THE SALE THE NATURAL GAS COMPANY ALSO SAID IT REDEEMED ON MONDAY THE ENTIRE 50 MILLION PRINCIPAL AMOUNT OF ITS OUTSTANDING 9 5/8 DEBENTURES DUE FEBRUARY 2018 9302050151 930205 TECHNOLOGY U S WEST WILL OVERHAUL NETWORK ENABLING IT TO CARRY VIDEO SIGNALS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL U S WEST INC PLANS TO MODERNIZE ITS PHONE NETWORK BUILDING A HIGHCAPACITY HIGHWAY THAT WILL CARRY INTERACTIVE VIDEO AND VAST AMOUNTS OF DATA AS EASILY AS TODAY'S NETWORK HANDLES PHONE CALLS THE PROJECT IS ESTIMATED TO COST ABOUT 1000 FOR EACH OF THE 132 MILLION HOMES IN U S WEST'S 14STATE TERRITORY OR A TOTAL OF ABOUT 132 BILLION EXCLUDING NEW CUSTOMERS TOM BYSTRZYCKI EXECUTIVE VICE PRESIDENT MASS MARKETS AND OPERATIONS SAID THE COMPANY WILL CONDUCT A TECHNICAL TEST OF THE NEW NETWORK STARTING LATE THIS YEAR ABOUT 100000 CUSTOMERS ARE EXPECTED TO USE THE NEW NETWORK BY THE END OF 1994 AFTER THAT THE COMPANY PLANS TO ADD 500000 OR MORE CUSTOMERS TO THE NETWORK EACH YEAR AT THAT RATE THE PROJECT WOULD LAST 26 YEARS THE DECISION TO TACKLE THE PROJECT HAD TO BE MADE NOW BECAUSE THE BUILDING CYCLE IS SO LONG MR BYSTRZYCKI SAID THE ENGLEWOOD COLO COMPANY HOPES THAT COSTS WILL DROP AS TECHNICIANS DEVISE BETTER WAYS TO REBUILD THE NETWORK WE ALSO HOPE TO PUT SERVICES ON THE NETWORK THAT WILL CHANGE THE ECONOMICS AND SPEED UP THE CONSTRUCTION SCHEDULE MR BYSTRZYCKI SAID U S WEST PLANS TO USE THE NETWORK TO TRANSMIT CABLE TV AND OTHER VIDEO SERVICES INCLUDING CARRYING SIGNALS FOR CABLETV OPERATORS UNDER FEDERAL LAW MOST PHONE COMPANIES ARE BARRED FROM OWNING CABLETV SERVICES WITHIN THEIR TELEPHONE SERVICE TERRITORIES MARION BOUCHER AN ANALYST AT DONALDSON LUFKIN & JENRETTE NOTED THAT U S WEST HAS EXTENSIVE EXPERIENCE OPERATING HYBRID VIDEOANDVOICE NETWORKS IN THE UNITED KINGDOM WITH A PARTNER TELECOMMUNICATIONS INC THE BIG DENVERBASED CABLE OPERATOR THE PHONE COMPANIES ARE BEGINNING TO REALIZE THAT THEY HAVE TO START INVESTING IN THEIR NETWORKS TO PROVIDE CUSTOMERS WITH SOMETHING EQUAL TO OR BETTER THAN WHAT THE CABLE COMPANIES CAN OFFER SHE SAID THE PHONE COMPANIES ARE BEGINNING TO FACE COMPETITION FROM CABLETV COMPANIES AND FIBEROPTIC COMPANIES THAT SERVE BIG CORPORATIONS AND LONGDISTANCE CARRIERS A BIG QUESTION IS WHAT U S WEST WILL DO WITH ITS EXISTING NETWORK WILL IT BE WRITTEN OFF OR DEPRECIATED SO THE COMPANY CAN INVEST IN THE NETWORK OF THE FUTURE MS BOUCHER SAID MR BYSTRZYCKI SAID THE COMPANY WILL CONTINUE PUSHING REGULATORS TO SPEED UP DEPRECIATION SCHEDULES FOR NETWORK EQUIPMENT BUT SAID HE COULDN'T AND WOULDN'T PREDICT WHETHER THE PROJECT WILL LEAD TO A WRITEOFF OF ASSETS THE NETWORK WILL CARRY VIDEO AND TELEPHONE SIGNALS OVER FIBEROPTIC LINES FROM PHONE COMPANY FACILITIES INTO NEIGHBORHOODS FROM THERE VIDEO SIGNALS WILL BE CARRIED INTO HOMES ON COAXIAL CABLE THE SAME KIND OF COPPER WIRING USED TO CARRY CABLETV SIGNALS AND TELEPHONE CALLS WILL BE CARRIED OVER ORDINARY COPPER WIRING THE PHONE LINES WILL BE UPGRADED TO USE DIGITAL TRANSMISSION ALTHOUGH U S WEST IS THE NATION'S FIRST LOCAL PHONE COMPANY TO ANNOUNCE SUCH A COMPREHENSIVE PROJECT OTHER PHONE COMPANIES INCLUDING AMERITECH CORP BELL ATLANTIC CORP BELLSOUTH CORP AND NYNEX CORP HAVE DISCLOSED PLANS TO UPGRADE PORTIONS OF THEIR NETWORKS TO CARRY VIDEO AND MULTIMEDIA TRAFFIC IN ADDITION TIME WARNER INC RECENTLY ANNOUNCED PLANS TO UPGRADE ITS CABLE NETWORK IN THE ORLANDO FLA AREA TO HANDLE VIDEOONDEMAND SERVICES AND CARRY TELEPHONE CALLS JOHN KESSLER OF KMI CORP A FIBEROPTIC CONSULTING COMPANY BASED IN NEWPORT RI NOTED THAT IN 1991 GERMANY'S STATEOWNED TELEPHONE COMPANY WAS THE FIRST TO ANNOUNCE A MAJOR NETWORK PROJECT INSTALLING FIBEROPTIC LINES TO 12 MILLION HOMES IN EAST GERMANY PHONE NETWORKS HE SAID ARE ADDING MORE FIBER OPTIC LINES BECAUSE THE COST IS COMPETITIVE WITH COPPER LINES AND IT OFFERS ENORMOUS OPPORTUNITIES TO PROVIDE UNPARALLELED SERVICE FOR CUSTOMERS AND NEW REVENUE STREAMS FOR TELEPHONE COMPANIES 9302050150 930205 TANDY'S SALES UP 15 FORT WORTH TEXAS TANDY CORP SAID US SALES FOR JANUARY ROSE 15 TO 2975 MILLION FROM 2581 MILLION LAST YEAR THE CONSUMER ELECTRONICS AND COMPUTER RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR ROSE 7 9302050149 930205 VALUE CITY POSTS SALES GAINS COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID SAMESTORE SALES INCREASED 21 FOR THE FOUR WEEKS ENDED JAN 23 TOTAL SALES AT THE OFFPRICE DEPARTMENT STORE CHAIN INCREASED 53 TO 356 MILLION FROM 338 MILLION IN THE YEARAGO PERIOD 9302050148 930205 CHOP SHOPS NOW HAVE AN EXCUSE WHEN PARTS MYSTERIOUSLY APPEAR BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA THE WORLD BANK KNOWS THAT INDONESIA'S ECONOMIC PROBLEMS CAN'T BE SOLVED BY MAGIC BUT FIXING THE BOSS'S CAR IS ANOTHER MATTER JUST ASK NICHOLAS HOPE RESIDENT DIRECTOR OF THE WORLD BANK'S OFFICE HERE AFTER AN ACCIDENT DAMAGED HIS TOYOTA CROWN A LOCAL GARAGE SAID REPAIRS MAINLY BODY WORK WOULD TAKE TWO WEEKS AND COST 700 TOO LONG AND TOO MUCH MR HOPE'S STAFF DECIDED TURNING INSTEAD TO A PRACTITIONER OF KETOK MAGIC OR MAGIC KNOCK AN INDONESIAN HYBRID IN WHICH MECHANICS TAP UNEARTHLY POWERS TO BETTER WIELD THEIR SOCKET WRENCHES AND SPOTWELDERS HALF A DAY LATER THE CAR CAME BACK FULLY RESTORED THE BILL CAME TO JUST 122 AND NOW MORE THAN 18 MONTHS LATER THE CAR STILL LOOKS FINE MR HOPE SAYS THOUSANDS OF KETOKMAGIC SHOPS HAVE OPENED IN INDONESIA IN RECENT YEARS WORKERS IN THESE GARAGES PORTRAY THEMSELVES AS MERELY THE TOOLS OF A MAGIC SPIRIT WITH WHICH THEY CAN COMMUNE AFTER LONG PERIODS OF FASTING AND RIGOROUS STUDY THESE MAGICIANS PREFER TO PRACTICE THEIR TRADE WITH NO OUTSIDER LOOKING ON AT KETOK MAGIC NUSANTARA WHICH FIXED MR HOPE'S CAR VISITORS ARE KEPT FROM THE INNER SANCTUM BY AN IRON FENCE ANOTHER GARAGE BARS CUSTOMERS FROM VIEWING THE TOOLS ALL OF INDONESIA'S UNDERTHEHOOD SAGES CLAIM TIES TO A DAY LABORER FROM EAST JAVA NAMED TURUT WHO ACQUIRED A REPUTATION AS A KIND OF MERLIN AMONG MECHANICS BEFORE HE DIED IN 1986 EDDY SUSANTO A 32YEAROLD WORKER AT KETOK MAGIC NUSANTARA SAYS THAT AS A CHILD HE SAW MR TURUT PICK UP A LENGTH OF RAILWAY TRACK WITH HIS BARE HANDS AND TIE IT AROUND HIS WAIST SAYS MR SUSANTO IT CONVINCED ME HE WASN'T AN ORDINARY PERSON MR TURUT GUIDED MR SUSANTO AND 29 OTHER SELFPROCLAIMED DISCIPLES THROUGH A TRAINING REGIMEN THEY EARNED THE RIGHT BOTH TO PRACTICE KETOK MAGIC AND TO TRAIN OTHERS BUT PROSELYTIZING HAS PROVED DIFFICULT YOUNG PEOPLE AREN'T PATIENT TO LEARN THE MAGIC THINGS MR SUSANTO SAYS SKEPTICS ABOUND ISHAK ISMAIL OWNER OF BUYONG MOTORS A CONVENTIONAL JAKARTA GARAGE SAYS I DON'T BELIEVE IN SUCH A THING I DO THE REAL THINGS NO MAGIC TARSIKUN THE DRIVER WHO DELIVERED MR HOPE'S WORLD BANK CAR TO ITS KETOK DOCTOR IS ALSO DUBIOUS HE SAYS THAT WHILE WAITING OUTSIDE HE HEARD LOUD NOISES THAT DIDN'T SOUND LIKE MAGIC STILL HE ADDS THE RESULTS ARE OK AND MUCH FASTER THAN ORDINARY WORKSHOPS 9302050147 930205 INTERNATIONAL SPANISH STEEL FIRMS' WORKERS MADRID THE SPANISH GOVERNMENT AUTHORIZED STATECONTROLLED STEEL COMPANIES TO REDUCE THEIR WORK FORCE BY 9185 WORKERS AS PART OF A PLAN TO OVERHAUL SPAIN'S AILING STEEL INDUSTRY THE REDUCTIONS FORM PART OF A PLAN TO RESTRUCTURE SPAIN'S STEEL INDUSTRY WHICH HAS COME UNDER FIRE FROM MANY EUROPEAN COMMUNITY COUNTRIES BECAUSE OF ITS LARGESCALE SUBSIDIES TO UNPROFITABLE FIRMS THE PLAN HAS ALSO PROVED POLITICALLY UNPOPULAR AT HOME PROVOKING NUMEROUS PROTESTS OVER THE PROPOSED REDUCTIONS IN A STATEMENT THE LABOR MINISTRY SAID BECAUSE MOST OF THE WORKERS ARE 52 YEARS OF AGE OR OLDER THE MAJORITY OF THE REDUCTIONS WILL BE MADE THROUGH EARLY RETIREMENT 9302050146 930205 MERRYGOROUND ENTERPRISES JOPPA MD MERRYGOROUND ENTERPRISES INC SAID JANUARY SALES ROSE ABOUT 10 TO 446 MILLION FROM 407 MILLION SAME STORE SALES FELL 55 THE APPAREL CHAIN SAID SALES FOR THE 52 WEEKS ENDED JAN 30 ROSE 15 TO 8776 MILLION FROM 7612 MILLION SAME STORE SALES FELL 2 9302050145 930205 WHO'S NEWS PHARMOR HIRES PRESIDENT SHUFFLES ITS TOP EXECUTIVES BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PHARMOR INC HIRED A NEW PRESIDENT AS IT SHUFFLED ITS TOP MANAGEMENT THE MOVES TOOK PLACE AS A FORMER EXECUTIVE PLEADED GUILTY TO DEFRAUDING THE DEEPDISCOUNT DRUGSTORE CHAIN DAVID SCHWARTZ PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SMITTY'S SUPER VALU INC PHOENIX WAS NAMED PHARMOR PRESIDENT AND CHIEF OPERATING OFFICER THE 47YEAROLD MR SCHWARTZ SUCCEEDS ANTONIO C ALVAREZ A NEW YORK TURNAROUND EXPERT WHO TOOK OVER THOSE POSTS IN SEPTEMBER AFTER MICHAEL I MONUS WAS FIRED IN CONNECTION WITH AN ALLEGED 499 MILLION FRAUD AND EMBEZZLEMENT OF THE STORE HE COFOUNDED MR ALVAREZ WHO IS 44 WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING PHARMOR'S COFOUNDER DAVID S SHAPIRA 51 WHO WAS NAMED CHAIRMAN A SPOKESMAN SAID THAT AS CHAIRMAN MR SHAPIRA WHO IS ALSO CHIEF EXECUTIVE OFFICER OF CLOSELY HELD GIANT EAGLE INC WILL REMAIN INVOLVED IN PHARMOR'S DAYTODAY OPERATIONS IN HIS NEW JOB AS PRESIDENT MR SCHWARTZ FACES THE DAUNTING TASK OF TURNING AROUND PHARMOR WHICH SOUGHT CHAPTER 11 BANKRUPTCYLAW PROTECTION IN AUGUST AFTER DISCLOSING IT HAD BEEN DEFRAUDED BY SEVERAL FORMER EXECUTIVES CLOSELY HELD PHARMOR BASED IN YOUNGSTOWN OHIO HAS 255 STORES IN 29 STATES AND REPORTED SALES OF 314 BILLION FOR FISCAL 1992 ENDED JUNE 20 I AM LOOKING FORWARD TO THE CHALLENGE OF HELPING PHARMOR RESTRUCTURE SUCCESSFULLY SAID MR SCHWARTZ WHOSE APPOINTMENT IS SUBJECT TO BANKRUPTCY COURT APPROVAL HE SAID HIS TOP PRIORITIES WILL BE EVALUATING WHETHER PHARMOR STORES ARE TOO LARGE AND IMPROVING MARGINS THE MANAGEMENT CHANGES COME LESS THAN A WEEK AFTER A FEDERAL GRAND JURY INDICTED MR MONUS 45 ON 129 FRAUD EMBEZZLEMENT AND TAX COUNTS TWO OTHER FORMER EXECUTIVES PATRICK B FINN 34 AND JEFFREY C WALLEY 37 WERE CHARGED BY THE US ATTORNEY'S OFFICE IN CLEVELAND IN THE ALLEGED FRAUD MR WALLEY FORMERLY PHARMOR VICE PRESIDENT OF FINANCE PLEADED GUILTY YESTERDAY IN US DISTRICT COURT IN CLEVELAND TO FOUR COUNTS INCLUDING AIDING AND ABETTING A BANK FRAUD AND A WIRE FRAUD AND ENGAGING IN MONETARY TRANSACTIONS INVOLVING PROPERTY THAT WAS TIED TO UNLAWFUL ACTIVITY ACCORDING TO ASSISTANT US ATTORNEY JOHN D SAMMON MR WALLEY HAS AGREED TO COOPERATE WITH AUTHORITIES AND TESTIFY AGAINST MR MONUS AS PART OF A LENGTHY WRITTEN PLEA AGREEMENT MR SAMMON SAID MR FINN FORMERLY CHIEF FINANCIAL OFFICER HAS SIGNED AN AGREEMENT TO PLEAD GUILTY TO 14 COUNTS INCLUDING SEVERAL COUNTS OF BANK MAIL AND WIRE FRAUD MONEY LAUNDERING AND AIDING AND ASSISTING IN THE PREPARATION OF FALSE INCOME TAX RETURNS MR FINN WILL ALSO TESTIFY AGAINST MR MONUS MR SAMMON SAID 9302050144 930205 HECHINGER'S JANUARY SALES ROSE LANDOVER MD HECHINGER CO SAID JANUARY SALES ROSE 16 TO 113 MILLION FROM 977 MILLION SAMESTORE SALES ROSE 1 THE OPERATOR OF DOITYOURSELF RETAIL HOME CENTERS SAID TOTAL SALES FOR FISCAL 1992 ROSE 16 TO 19 BILLION FROM 16 BILLION SAMESTORE SALES ROSE 7 9302050143 930205 50OFF STORES REPORT SALES RISE SAN ANTONIO 50OFF STORES INC SAID SALES IN THE FOURWEEK PERIOD ENDED JAN 29 ROSE 31 TO 76 MILLION FROM 58 MILLION BUT DID NOT MEET THE COMPANY'S EXPECTATIONS SALES AT STORES OPEN MORE THAN ONE YEAR FELL 71 IN THE YEAR ENDED JAN 29 SALES ROSE 39 TO 181 MILLION FROM 1301 MILLION COMPARABLE STORE SALES FELL 2 THE DISCOUNT RETAILER SAID DUTY ENFORCEMENT BY THE MEXICAN GOVERNMENT ALONG THE TEXAS BORDER HAD A NEGATIVE IMPACT 9302050142 930205 MOBIL SEES FLAT CAPITAL BUDGET FAIRFAX VA MOBIL CORP SAID ITS 1993 CAPITAL AND EXPLORATION EXPENDITURES ARE EXPECTED TO BE ABOUT FLAT WITH THE 1992 SPENDING LEVEL OF 44 BILLION MOBIL SAID IN BOTH 1992 AND 1991 THE COMPANY REDUCED ITS CAPITAL APPROPRIATION BUDGETS FROM ORIGINALLY APPROVED LEVELS TO REFLECT SLOW ECONOMIC GROWTH AROUND THE WORLD AND POOR BUSINESS CONDITIONS IN THE INDUSTRY AS A RESULT THE SPENDING LEVEL IN 1992 WAS DOWN 600 MILLION 9302050141 930205 BABBAGE'S SALES RISE 30 FOR THE FISCAL YEAR SALES INCREASED 24 TO 2092 MILLION FROM 1684 MILLION COMPARABLE STORE SALES INCREASED 8 9302050140 930205 COLUMBUS ENERGY WELL TESTING DENVER COLUMBUS ENERGY CORP SAID IT COMPLETED TESTING OF TWO PRODUCING ZONES OF A NATURAL GAS DISCOVERY WELL IN HARRIS COUNTY TEXAS WHICH FLOWED AT A COMBINED RATE OF 28 MILLION CUBIC FEET OF NATURAL GAS ONE INTERVAL FLOWED 15 MILLION CUBIC FEET OF GAS AND 18 BARRELS OF CONDENSATE THROUGH A 12/64INCH CHOKE AND THE OTHER FLOWED 13 MILLION CUBIC FEET AND 25 BARRELS OF CONDENSATE THROUGH A 9/64INCH CHOKE COLUMBUS ENERGY THE OPERATOR OWNS 46 WORKING INTEREST AND THE REST IS OWNED BY PRIVATELY HELD OIL AND GAS COMPANIES AND INDIVIDUALS 9302050139 930205 MARKETING & MEDIA GENERAL MILLS' NEW CEREAL MADE TO SNACK FROM PACK MINNEAPOLIS NOW COMES CEREAL MADE TO BE EATEN WITHOUT MILK AND NOT JUST AT BREAKFAST GENERAL MILLS INC ANNOUNCED A LINE OF PRESWEETENED MULTIGRAIN CHIPS THAT CAN BE CONSUMED THROUGHOUT THE DAY RIGHT OUT OF THE BOX CALLED FINGOS THE PRODUCT WILL BE ADVERTISED AS THE CEREAL MADE TO EAT WITH YOUR FINGERS WE'RE TRYING TO GET PEOPLE TO LOOK AT CEREAL IN A WHOLE NEW WAY A SPOKESMAN SAYS THE NO 2 CEREAL MAKER IN THE US BEHIND KELLOGG CO GENERAL MILLS INTENDS TO STOCK THE ITEM IN STORES ALONGSIDE ITS TRADITIONAL CEREALS AND NOT AMONG SUCH SNACKS AS POTATO CHIPS AND COOKIES THE PRODUCT WILL BEGIN APPEARING IN SUPERMARKETS IN THE EASTERN US IN MAY A NATIONAL ROLLOUT WILL FOLLOW BOLSTERED BY A 34 MILLION ADVERTISING CAMPAIGN FINGOS WILL COME IN TWO FLAVORS CINNAMON AND HONEY TOASTED OAT AND WILL BE SOLD IN BULK AS WELL AS IN SINGLESERVING PACKETS SUGGESTED RETAIL PRICE WILL BE 239 FOR BOTH THE EIGHTOUNCE BULK VERSION AND SIXOUNCE BOX OF PACKETS 9302050138 930205 ROSE'S STORES POSTS SALES JUMP HENDERSON NC ROSE'S STORES INC REPORTED THAT UNAUDITED SALES AT STORES OPEN MORE THAN A YEAR ROSE 14 TO 973 MILLION FOR THE FIVE WEEKS ENDED JAN 30 COMPARED WITH SALES IN THE YEAREARLIER PERIOD 9302050137 930205 INTERNATIONAL C&W BUYS 40 STAKE IN BELCEL LONDON CABLE & WIRELESS PLC SAID IT HAS TAKEN A 40 STAKE IN BELCEL A CONSORTIUM SET UP TO BUILD AND OPERATE A CELLULAR MOBILE TELEPHONE NETWORK IN THE FORMER SOVIET REPUBLIC OF BELARUS C&W SAID ITS INITIAL INVESTMENT WILL BE ABOUT 7 MILLION BELARUS'S MINISTRY OF POSTS TELECOMMUNICATIONS AND INFORMATICS WILL HOLD 50 OF BELCEL AND COMMSTRUCT INTERNATIONAL BV WILL OWN THE REMAINING 10 C&W SAID THE CONSORTIUM WILL BEGIN OFFERING SERVICE IN THE CAPITAL OF MINSK BY APRIL EXPANSION TO OTHER MAJOR CITIES WILL THEN FOLLOW C&W SAID BELARUS HAS A POPULATION OF 105 MILLION PEOPLE 9302050136 930205 CANADA STEEL OUTPUT RISES 01 OTTAWA CANADIAN STEEL PRODUCTION TOTALED 279074 METRIC TONS IN THE WEEK ENDED JAN 30 A 01 INCREASE FROM 278738 TONS THE PREVIOUS WEEK AND A 47 INCREASE FROM 266495 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO 22046 POUNDS JANUARY PRODUCTION TOTALED 1129705 TONS A 43 INCREASE FROM 1083380 TONS A YEAR EARLIER 9302050135 930205 INTERNATIONAL GERMAN BUNDESBANK LOWERS KEY RATES MOVE IS SEEN AS TOO SMALL TO EASE ONGOING CRISIS IN EUROPE'S CURRENCIES BY TERENCE ROTH AND BOB HAGERTY STAFF REPORTERS OF THE WALL STREET JOURNAL FRANKFURT YIELDING TO POLITICAL AND ECONOMIC PRESSURE GERMANY'S CENTRAL BANK GRUDGINGLY TRIMMED KEY INTEREST RATES BUT WHILE THE BUNDESBANK'S SURPRISE MOVE MAY TEMPORARILY STEADY EUROPE'S TEETERING MONETARY SYSTEM NOBODY EXPECTS IT TO EASE THE ONGOING CURRENCY CRISIS FOR LONG SEEKING TO BALANCE POLITICAL DEMANDS FOR LOWER RATES AGAINST ITS OWN INFLATIONFIGHTING IMPERATIVES THE BUNDESBANK SIMPLY CUT RATES TOO LITTLE TO HAVE MUCH LONGRUN IMPACT IN FOREIGN EXCHANGE TRADING YESTERDAY THE DOLLAR GAVE UP MOST OF ITS EARLY GAINS ON THE NEWS AS PLAYERS DISCOUNTED THE CUT AS TOO SLIGHT THE POLICYSETTING CENTRAL BANK COUNCIL YESTERDAY VOTED TO EASE GERMANY'S LOMBARD RATE ONEHALF POINT TO 9 AND ITS DISCOUNT RATE BY ONEQUARTER POINT TO 8 THE LOMBARD RATE IS THE INTEREST RATE CHARGED FOR SUPPLEMENTAL BORROWINGS FROM THE CENTRAL BANK USING SECURITIES AS COLLATERAL THE DISCOUNT RATE OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS BORROWING FROM THE LOMBARD FACILITY IS MORE CLOSELY WATCHED BY THE CREDIT MARKETS BECAUSE THE LOMBARD RATE SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE GERMAN CUT FOLLOWED A RATE REDUCTION THURSDAY BY JAPAN'S CENTRAL BANK MEANT TO SPUR THAT COUNTRY'S ECONOMY IT ALSO CAME AMID A SWELL OF BAD ECONOMIC NEWS IN GERMANY THE ECONOMICS MINISTRY SAID NEW ORDERS TO WESTERN GERMANY'S MANUFACTURING INDUSTRY FELL A PRELIMINARY 36 IN DECEMBER FROM NOVEMBER AND WERE DOWN 117 FROM A YEAR EARLIER BOTH DECLINES EXCEEDED ECONOMISTS' ESTIMATES THE GOVERNMENT ALSO REPORTED THAT THE NUMBER OF WESTERN GERMAN COMPANIES FILING FOR BANKRUPTCY IN NOVEMBER JUMPED 256 FROM THE YEAREARLIER MONTH TO 799 CASES EARLY GLIMPSES FROM THE GOVERNMENT'S 1993 ECONOMIC OUTLOOK SEE EUROPE'S BIGGEST ECONOMY HEADING INTO A DIFFICULT RECESSION OTTO LAMBSDORFF HEAD OF THE FREE DEMOCRATIC PARTY THE JUNIOR COALITION PARTNER THIS WEEK CALLED IT GERMANY'S WORST RECESSION SINCE THE FEDERAL REPUBLIC'S CREATION AFTER WORLD WAR II THE BUNDESBANK MOVE CAUGHT MANY ECONOMISTS BY SURPRISE THAT'S BECAUSE IT CAME IN THE ABSENCE OF CONCLUSIVE SIGNS OF NEW FISCAL CONTROLS BY THE GERMAN FEDERAL GOVERNMENT OR WAGE MODERATION FEARS OF RUNAWAY WAGE DEMANDS ON TOP OF BONN'S HUGE UNITYRELATED BUDGET DEFICITS HAVE BEEN THE CHIEF FACTORS BEHIND THE BUNDESBANK'S INFLATION FEARS HOWEVER THOSE FEARS COULD BE QUELLED SOMEWHAT BY THE APPARENT AGREEMENT LAST NIGHT OF GERMANY'S TWO LARGEST PUBLICSECTOR UNIONS TO A SUBINFLATION PAY RAISE OF 3 FOR 1993 US TREASURY SECRETARY LLOYD BENTSEN SAID THE BUNDESBANK'S MOVE REFLECTS OUR SHARED COMMITMENT TO STRENGTHENING WORLD ECONOMIC GROWTH MR BENTSEN PLANS TO MEET WITH FINANCE MINISTERS AND CENTRAL BANKERS FROM THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES LATER THIS MONTH OR EARLY IN MARCH PRIMARILY TO GET ACQUAINTED BUT ALSO TO OUTLINE PRESIDENT CLINTON'S ECONOMIC PLAN US OFFICIALS SAID THE GERMAN AND JAPANESE CUTS DIDN'T APPEAR TO BE A COORDINATED ACTION BUT RATHER A PARALLEL REACTION TO CONDITIONS IN JAPAN AND EUROPE THE BUNDESBANK GESTURE LED SOME OTHER NATIONS TO LOWER THEIR RATES AND BROUGHT TEMPORARY RELIEF TO THE EUROPEAN COMMUNITY'S EXCHANGE RATE MECHANISM WHICH NARROWLY LIMITS FLUCTUATIONS AMONG THE NINE CURRENCIES STILL PARTICIPATING BUT ECONOMISTS AGREED THAT IT WON'T BE ENOUGH TO FEND OFF ATTACKS ON THE ERM THE SYSTEM HAS BEEN RATTLED BY FOUR REALIGNMENTS SINCE SEPTEMBER WHEN THE ITALIAN LIRA AND BRITISH POUND WERE YANKED OUT OF THE ERM AND ALLOWED TO FLOAT INSTEAD OF CUTS OF ONEQUARTER POINT AND ONEHALF POINT THE BUNDESBANK NEEDS TO COME DOWN RAPIDLY BY TWO OR THREE FULL POINTS TO EASE THE PRESSURE SAID ROBIN MARSHALL CHIEF ECONOMIST FOR CHASE MANHATTAN BANK IN LONDON THE CRISIS ISN'T OVER SAID PETER PRAET CHIEF ECONOMIST AT GENERALE DE BANQUE IN BRUSSELS HE SAID THE SYSTEM WOULD REMAIN UNDER STRAIN AS LONG AS INTEREST RATES IN FRANCE DENMARK AND OTHER COUNTRIES REMAIN WELL ABOVE LEVELS APPROPRIATE FOR A RECESSION FOR HIS PART HELMUT SCHLESINGER THE BUNDESBANK PRESIDENT MAINTAINED THAT THE RATE CUT DOESN'T MEAN WE ARE DEPARTING FROM OUR COURSE OF HOLDING PRICES STABLE DESPITE THE INTENSE PRESSURE FROM BONN'S FINANCE MINISTRY AND FROM MEMBERS OF THE GOVERNING COALITION FOR LOWER INTEREST RATES NOT TO MENTION EUROPEAN NEIGHBORS MR SCHLESINGER INSISTED THAT BUNDESBANK POLICIES ALONE CAN'T REVERSE GERMANY'S ECONOMIC SLOWDOWN MR SCHLESINGER SAID THE CUTS REFLECTED A GRADUAL EASING THAT THE BANK HAD BEEN PREPARING FOR SOME TIME HE SPOKE OF SIGNS THAT GROWTH IN GERMAN MONEY SUPPLY AND INFLATION COULD BE EASING WE DID WHAT WE WERE ABLE TO DO HE SAID FOR CHANCELLOR HELMUT KOHL THE BUNDESBANK'S MOVE IS A MAJOR VICTORY HE HAS MADE NO SECRET THAT HE WANTS AN EASING OF KEY RATES TO STEER GERMANY OUT OF RECESSION AND ALSO TO DEFLECT CRITICISM FROM BONN'S TRADING PARTNERS WHO BLAME THE CENTRAL BANKERS IN FRANKFURT FOR DEEPENING THE GLOBAL RECESSION DESPITE RECESSION RISKS AND GROWING UNEMPLOYMENT IN THEIR OWN ECONOMIES OTHER ERM COUNTRIES HAVE BEEN FORCED TO KEEP INTEREST RATES HIGHER THAN GERMANY'S TO DEFEND THE FIXED TRADING RANGES OF THEIR CURRENCIES WITH THE MARK INDEED EARLIER YESTERDAY PRIOR TO THE GERMAN RATE CUT THE DANISH CENTRAL BANK HAD BOOSTED ITS DISCOUNT RATE BY TWO PERCENTAGE POINTS TO 115 TO DEFEND THE HARDPRESSED KRONE AGAINST SPECULATORS RESENTMENT OVER THE CURRENCY SITUATION IS ALL THE MORE TAXING FOR MR KOHL BECAUSE OF HIS LEADING ROLE IN HELPING SET A COURSE FOR MONETARY UNION ONE OF HIS CHIEF FOREIGN POLICY GOALS DESPITE BROAD RESISTANCE FROM GERMAN VOTERS NOW GERMANY IS BEING BLAMED FOR A SPREADING RECESSION IN EUROPE THAT MAKES IT HARDER TO MAINTAIN CURRENCY STABILITY AND HARDER STILL FOR MEMBER STATES TO REDUCE THEIR GOVERNMENT DEBT AND BUDGET DEFICITS TWO KEY CONDITIONS FOR ACHIEVING A MONETARY UNION THE EC COMMISSION FORECASTS THAT THE EC ECONOMY WILL GROW AN ANEMIC 08 THIS YEAR AND MANY ECONOMISTS SAY EVEN THAT IS TOO OPTIMISTIC MEANWHILE EC UNEMPLOYMENT IS EXPECTED TO RISE TO NEAR 11 THIS YEAR FROM 10 AT THE END OF 1992 WE ARE IN A CRISIS JACQUES DELORS PRESIDENT OF THE EC COMMISSION SAID IN A SPEECH YESTERDAY IF THERE IS NO GROWTH BETWEEN NOW AND 1997 THERE WILL BE NO EMU OR MONETARY UNION MR DELORS ALSO WARNED THAT MONETARY UNION WILL BECOME IMPOSSIBLE IF ECONOMIC COORDINATION AMONG EC MEMBERS BREAKS DOWN AND POLICIES ARE RENATIONALIZED THAT ALREADY IS THE CASE IN BRITAIN WHICH HAS SLASHED ITS INTEREST RATES IN RECENT MONTHS AND ALLOWED ITS CURRENCY TO PLUNGE THE WEAK POUND PUTS PRESSURE ON OTHER EC MEMBERS BY MAKING BRITISH EXPORTS MUCH MORE COMPETITIVE AT LEAST IN THE SHORT RUN CENTRAL BANKS INTERVENED HEAVILY IN FOREIGNEXCHANGE MARKETS TO SUPPORT THE DANISH CURRENCY THIS WEEK WHEN EVEN THE BELGIAN FRANC APPEARED TO BE COMING UNDER PRESSURE BOTH ARE CONSIDERED CORE CURRENCIES THAT IF DEVALUED WOULD SHAKE CONFIDENCE IN THE FUTURE OF EUROPEAN MONETARY UNION THE NEXT TARGET WOULD LIKELY BE THE FRANC WHOSE RELATIONSHIP WITH THE MARK IS THE LINCHPIN OF THE SYSTEM THE MARKET WILL COME BACK AND TEST CURRENCIES AGAIN AND AGAIN PREDICTED NIGEL RENDELL AN ECONOMIST AT JAMES CAPEL & CO IN LONDON WHO PROCLAIMS THE ERM TO BE IN ITS FINAL DAYS HE SEES A REASONABLE PROBABILITY THAT THE FRANC AND THE KRONE WILL BE KNOCKED OUT OF THE SYSTEM AND ALLOWED TO FLOAT WITHIN THE NEXT COUPLE OF MONTHS AS THOSE COUNTRIES GROW MORE DESPERATE FOR LOWER INTEREST RATES TO COUNTERACT RECESSION 9302050134 930205 WEAN EXTENDS EXCHANGE OFFER PITTSBURGH WEAN INC SAID IT FURTHER EXTENDED THE DEADLINE FOR THE EXCHANGE OFFER OF ITS 5 1/2 CONVERTIBLE SUBORDINATED DEBENTURES DUE MARCH 1 TO FEB 19 THE PREVIOUS DEADLINE WAS TODAY ABOUT 12 MILLION IN PRINCIPAL AMOUNT OF THE 5 1/2 DEBT IS OUTSTANDING THE COMPANY SAID THE COMPANY SAID ALL OTHER TERMS OF THE EXCHANGE OFFER ARE UNCHANGED WEAN IS OFFERING TO EXCHANGE THE 5 1/2 DEBT FOR NEW 8 CONVERTIBLE SENIOR SUBORDINATED NOTES DUE MARCH 1 2004 TO DATE ABOUT 2681150 IN PRINCIPAL AMOUNT OF THE DEBT HAS BEEN TENDERED 9302050133 930205 GANTOS JANUARY SALES FELL 7 SALES FOR THE FOURTH QUARTER ENDED JAN 30 REMAINED UNCHANGED AT 787 MILLION SAMESTORE SALES INCREASED 1 FOR THE FISCAL YEAR SALES TOTALED 2659 MILLION UP 3 FROM A YEAR AGO SAMESTORE SALES ROSE 5 9302050132 930205 DIVIDEND NEWS SEATTLE FILMWORKS INC SEATTLE FILMWORKS INC SEATTLE DECLARED A 3FOR2 STOCK SPLIT PAYABLE FEB 26 TO STOCK OF RECORD FEB 17 THE MOVE WILL INCREASE SHARES OUTSTANDING TO 25 MILLION 9302050131 930205 OLIVETTI CHAIRMAN DE BENEDETTI CHANGES HIS STANCE ON EUROPEAN UNIFICATION BY JANET GUYON AND PHILIP REVZIN STAFF REPORTERS OF THE WALL STREET JOURNAL DAVOS SWITZERLAND AFTER WATCHING AN AUTUMN OF CURRENCY TURMOIL TURN INTO A WINTER OF WARRING ECONOMIES ONE OF THE BIGGEST BOOSTERS OF A UNITED EUROPE IS SHIFTING HIS POSITION WE SHOULD WORK FOR THE EUROPE WHICH IS POSSIBLE NOT FOR THE EUROPE WHICH IS DREAMABLE SAID ITALIAN COMPUTER MAGNATE CARLO DE BENEDETTI IN A WIDERANGING INTERVIEW AT THIS ALPINE RESORT THE IDEA TODAY OF A UNITED EUROPE AT ONLY ONE SPEED HAS PROVED TO BE UNREALISTIC SO ACCEPT IT ITALY FOR SURE IS NOT AT THE SAME SPEED AS GERMANY OR FRANCE TAKE IT AS A FACT NOT AS A RELIGION THE OPTIMISTIC ITALIAN HASN'T GIVEN UP HOPE FOR A UNIFIED MARKET AND SOMEDAY A SINGLE CURRENCY BUT HE SAID THE EUROPEAN COMMUNITY HAS MADE TWO MISTAKES FAILING TO TAKE INTO ACCOUNT HISTORIC CHANGES SINCE IT MADE ITS PLANS FOR EUROPE IN 1987 AND TRYING TO FORCE UNION THROUGH DEMANDING A SINGLE CURRENCY WE THOUGHT THE CURRENCY WOULD BE THE INFRASTRUCTURE FOR A UNITED MARKET MR DE BENEDETTI SAID BUT THE CURRENCY IS ALWAYS THE CONSEQUENCE OF AN ECONOMIC EVENT IT'S NOT THE CAUSE OF AN ECONOMIC EVENT MR DE BENEDETTI ALSO SAID THAT IN HIS OWN INDUSTRY IRREVERSIBLE TECHNOLOGICAL CHANGES HAVE PERMANENTLY SHIFTED THE BALANCE OF POWER A DEVELOPMENT THAT CONTRIBUTED TO THE PROBLEMS OF INTERNATIONAL BUSINESS MACHINES CORP OF THE US HE SAID HIS CORPORATION ING C OLIVETTI & CO IS AHEAD OF ITS EUROPEAN COMPETITORS IN TRANSFORMING ITSELF FROM A COMPANY MAKING AND SELLING SINGLE COMPUTERS TO ONE SELLING A PACKAGE OF TECHNOLOGY THAT SOLVES A CUSTOMER'S PROBLEMS OLIVETTI SHOULD BREAK EVEN ON AN OPERATING BASIS THIS YEAR AND MAKE A PROFIT IN 1994 HE SAID IN EUROPE THE FALL OF THE BERLIN WALL IN 1989 AND REUNIFICATION OF GERMANY COMPLETELY REORDERED THE PRIORITIES OF THE EC'S LARGEST MEMBER GERMANY HAS ONE PRIORITY NOW WHICH IS FIGHTING THE INFLATION THAT CAME FROM UNIFICATION SAID MR DE BENEDETTI WHO WAS INTERVIEWED PRIOR TO THE BUNDESBANK'S CUT IN RATES YESTERDAY IN GERMANY HE SAID HIGH INTEREST RATES ARE TOTALLY JUSTIFIABLE FRANCE ON THE OTHER HAND DOESN'T HAVE PROBLEM INFLATION WHY SHOULD THEY HAVE FIVE POINTS OF REAL INTEREST RATES IT'S KILLING THEIR ECONOMY AND CREATING A NEGATIVE REACTION AGAINST EUROPE AND AGAINST GERMANY MR DE BENEDETTI SAID ITALY MEANWHILE HAS POLITICAL PROBLEMS TOO MUCH DEBT A RECESSIONARY ECONOMY AND INTEREST RATES THAT ARE TOO HIGH THE BIG DANGER I SEE IS TO GO TOWARD A WORLD OF COMPETITIVE DEVALUATION WHICH WOULD BE TERRIBLE FOR INDIVIDUAL BUSINESSES THE OLIVETTI CHAIRMAN SAID AND SUCH A SITUATION IS DESTROYING THE CONCEPT OF WHERE WE STARTED WHICH WAS CREATING A UNITED MARKET TO GET BACK ON TRACK HE SAID THE EC FIRST MUST RECOGNIZE THAT ECONOMIES DIFFER THEN YOU HAVE TO SEE WHAT YOU CAN DO REALISTICALLY TO INTEGRATE MARKETS SAID MR DE BENEDETTI IT IS NOT SO IMPORTANT THAT YOU HAVE A UNIFIED CURRENCY WHAT IS IMPORTANT IS THAT YOU HAVE THE INFRASTRUCTURE FOR THE MARKET MODERN ELECTRONIC FUNDSTRANSFER SYSTEMS MEAN CONSUMERS DON'T NECESSARILY HAVE TO CHANGE CURRENCIES THEY CAN ACCESS THEIR MONEY WITH CREDIT CARDS 9302050130 930205 INTERNATIONAL CREDIT LYONNAIS RISKYLOAN EXPOSURE WORSE THAN ADMITTED NEW BOOK SAYS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS CREDIT LYONNAIS SA IS MORE HEAVILY EXPOSED TO HOLLYWOODRELATED LOANS THAN THE FRENCH STATEOWNED BANK HAS SO FAR ADMITTED ACCORDING TO A NEW BOOK BY A MEMBER OF THE FRENCH PARLIAMENT THAT IS PUBLISHED TODAY THE BANK DISPUTES THE BOOK'S ALLEGATIONS THE BOOK L'ARGENT SALE OR DIRTY MONEY ALSO ACCUSES THE BANK'S DUTCH BRANCH OF WORKING WITH TWO ITALIANS GIANCARLO PARRETTI AND FLORIO FIORINI IN AN INCREDIBLE COLLUSION TO LAUNDER MONEY FROM DUBIOUS SOURCES THE CONVOLUTED TRAIL TRACED BY THE AUTHOR FRANCOIS D'AUBERT A DEPUTY SINCE 1978 WHO CURRENTLY HEADS A COMMISSION INTO THE ACTIVITIES OF THE MAFIA IN FRANCE PASSES THROUGH SPAIN THE SEYCHELLES AND ITALY TO HOLLYWOOD MR PARRETTI ACQUIRED METROGOLDWYNMAYER INC IN 1990 WITH SUBSTANTIAL LOANS FROM CREDIT LYONNAIS HE WAS SUBSEQUENTLY OUSTED BY THE BANK AND JAILED IN SICILY ON TAXEVASION CHARGES NOW BACK IN ROME HE HAS TOLD THE ITALIAN MEDIA THAT HE WANTS TO SET UP A NEW BUSINESS IN SPAIN AND PURSUE LEGAL ACTION AGAINST THE BANK MR FIORINI A FREQUENT BUSINESS PARTNER OF MR PARRETTI WHO PLAYED A ROLE IN THE MGM TAKEOVER IS IN JAIL IN SWITZERLAND FACING FRAUD CHARGES FOLLOWING THE COLLAPSE OF HIS OWN BUSINESS EMPIRE LAST YEAR CREDIT LYONNAIS SAYS IT LENT MR PARRETTI 560 MILLION TO ACQUIRE MGM AND HAS GIVEN THE COMPANY FURTHER CREDITS OF 730 MILLION TO ENABLE IT TO CONTINUE OPERATING IT SAYS IT ALSO LENT MR FIORINI 571 MILLION SWISS FRANCS 380 MILLION BUT FOR BUSINESSES THAT WERE LARGELY UNCONNECTED TO MR PARRETTI AND THE MGM IMBROGLIO MR D'AUBERT'S BOOK HOWEVER PROVIDES DETAILS OF CLOSE LINKS BETWEEN THE BUSINESS AFFAIRS OF THE TWO MEN AND THE BANK AND SUGGESTS THAT MR FIORINI A FORMER TOP MANAGER AT THE ITALIAN ENERGY CONGLOMERATE ENI WAS ESSENTIALLY THE BRAINS BEHIND MR PARRETTI'S FINANCIAL DEALINGS THE BANK SAYS THE BOOK HAS GROSSLY UNDERSTATED ITS OWN EXPOSURE TO THE TWO MEN MR D'AUBERT CLAIMS CREDIT LYONNAIS HAS LOANS OUTSTANDING AMOUNTING TO 15 BILLION FRENCH FRANCS 267 BILLION TO THE TWO MEN AND THAT MORE THAN ONEQUARTER OF THAT MONEY IS ALREADY IRRETRIEVABLE MR D'AUBERT A MEMBER OF A CONSERVATIVE OPPOSITION PARTY ALSO SUGGESTS THAT MESSRS PARRETTI AND FIORINI MANAGED TO GET AS FAR AS THEY DID ONLY BECAUSE OF STRONG AND POSSIBLY CORRUPT POLITICAL LINKS WITH SOCIALIST PARTIES IN ITALY SPAIN AND FRANCE AND HE INSISTS THAT TOP MANAGEMENT AT CREDIT LYONNAIS IN PARIS WHICH HAS MAINLY BLAMED THE DEBACLE ON MIDDLERANKING OFFICIALS CANNOT ESCAPE RESPONSIBILITY A SPOKESMAN FOR CREDIT LYONNAIS SAYS THAT BANK OFFICIALS HAVN'T YET HAD TIME TO READ THE 580PAGE BOOK BUT THAT THE BANK STANDS BY THE FINANCIAL DETAILS IT HAS ALREADY GIVEN THE BANK'S CHAIRMAN JEANYVES HABERER HAS SAID IN THE PAST THAT SUBORDINATES PROVIDED THE LOANS TO MR PARRETTI AGAINST HIS INSTRUCTIONS THE BANK ALSO POINTS OUT THAT IT SUCCESSFULLY SUED MR D'AUBERT FOR DEFAMATION LAST YEAR IN A PARIS COURT FOLLOWING PREVIOUS ALLEGATIONS THE DEPUTY MADE IN A STATEMENT ABOUT MONEYLAUNDERING MR D'AUBERT'S BOOK ISN'T WATERTIGHT RELYING IN PART ON NEWSPAPER ARTICLES FOR SOURCES IT EVEN SPELLS SOME NAMES INCORRECTLY BUT ITS TIMING IS IMMACULATE THE PUBLICATION COMES IN THE THICK OF A LEGAL BATTLE BEING WAGED BY CREDIT LYONNAIS AND KIRK KERKORIAN THE LOS ANGELESBASED INVESTOR WHO WAS MGM'S BIGGEST STOCKHOLDER THE DUTCH BRANCH OF CREDIT LYONNAIS LAST DECEMBER FILED SUIT IN LOS ANGELES COURT AGAINST MR KERKORIAN AND HIS TRACINDA CORP HOULIHAN LOKEY HOWARD & ZUKIN INC MR PARRETTI AND TWO OTHER INDIVIDUALS IT ALLEGES THE DEFENDANTS SOUGHT TO DECEIVE THE BANK OVER THE HIGHLY LEVERAGED MGM ACQUISITION BY PRETENDING THAT THE COMPANY WOULD HAVE SUFFICIENT CASH FLOW TO FINANCE ITS OPERATIONS EVEN THOUGH THIS WASN'T THE CASE MR KERKORIAN QUICKLY FILED A COUNTERSUIT AGAINST THE BANK'S HEADQUARTERS IN PARIS AS WELL AS ITS DUTCH BRANCH SEEKING 675 MILLION PLUS PUNITIVE DAMAGES HE CLAIMS THE BANK MISLED HIM ABOUT THE STATE OF MR PARRETTI'S FINANCES PATRICIA GLASER AN ATTORNEY FOR MR KERKORIAN SAID THE D'AUBERT BOOK IS HELPFUL BECAUSE IT PROVIDES A WEALTH OF INFORMATION ABOUT POTENTIAL WITNESSES FOR US AMONG OTHER THINGS SHE SAID IT CLARIFIES A CENTRAL ISSUE IN THE LITIGATION CREDIT LYONNAIS ALLEGES MR KERKORIAN CONSPIRED WITH MR PARRETTI TO DEFRAUD THE BANK WHILE THE BOOK SHOWS THAT THE REAL LONGTERM RELATIONSHIP WAS THAT OF THE BANK WITH PARRETTI AND FIORINI AND NOT PARRETTI AND FIORINI WITH US MS GLASER SAID AS PART OF THE LITIGATION A COURTAPPOINTED LAWYER IS EXPECTED TO TRAVEL TO EUROPE IN MIDMARCH TO TAKE DEPOSITIONS FROM SEVERAL TOP OFFICIALS AT CREDIT LYONNAIS INCLUDING MR HABERER 9302050129 930205 SOLO SERVE'S SALES JUMP 17 SAN ANTONIO TEXAS SOLO SERVE CORP SAID SALES IN THE FOUR WEEKS ENDED JAN 30 INCREASED 17 TO 85 MILLION FROM 73 MILLION DURING JANUARY 1992 SALES AT STORES OPEN MORE THAN ONE YEAR DECREASED 36 FOR THE FISCAL YEAR ENDED JAN 30 SALES INCREASED 25 TO 1544 MILLION FROM 1237 MILLION COMPARABLE STORE SALES FOR THE DISCOUNT RETAILER INCREASED 3 9302050128 930205 MOUNTAINEER BANKSHARES MERGER MARTINSBURG WVA MOUNTAINEER BANKSHARES OF WEST VIRGINIA INC SAID IT COMPLETED ITS MERGER WITH SUNRISE BANCORP INC AND ITS PRINCIPAL SUBSIDIARY SUNSHINE BANK OF WHEELING ON JAN 29 COMBINED ASSETS OF THE TWO BANKS TOTAL ABOUT 720 MILLION WITH COMBINED EQUITY IN EXCESS OF 60 MILLION THE BUSINESS COMBINATION WAS ACCOUNTED FOR AS A POOLING OF INTERESTS WITH 25 SHARES OF MOUNTAINEER STOCK ISSUED FOR EACH SHARE OF SUNRISE STOCK RESULTING IN A TOTAL OF 300000 SHARES OF MOUNTAINEER BEING ISSUED 9302050127 930205 APPLIED MAGNETICS STOCK OFFER GOLETA CALIF APPLIED MAGNETICS CORP SAID IT PLANS A PUBLIC OFFERING OF 475 MILLION COMMON SHARES AT 1350 EACH MANAGED BY LEHMAN BROTHERS THE OFFERING IS INCREASED FROM THE 42 MILLION ORIGINALLY FILED THE MAKER OF MAGNETIC RECORDING HEADS FOR DISK DRIVES AND TAPES SAID PROCEEDS WILL BE USED FOR DEBT REDUCTION 9302050126 930205 TECHNOLOGY WOMEN AS OLD AS 55 BECOME PREGNANT IN CALIFORNIA STUDY NEW YORK CALIFORNIA FERTILITY RESEARCHERS BOOSTED THE AGE AT WHICH A WOMAN CAN BECOME PREGNANT AFTER MENOPAUSE TO 55 YEARS THREE YEARS OLDER THAN IN PREVIOUS FERTILITY EXPERIMENTS A TEAM OF RESEARCHERS AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IN LOS ANGELES REPORTED THAT THEY HAD TAKEN EGGS DONATED BY YOUNG WOMEN FERTILIZED THE EGGS IN TEST TUBES AND IMPLANTED THEM IN 14 WOMEN WHO WERE 50 TO 55 YEARS OLD EIGHT OF THE WOMEN BECAME PREGNANT SO FAR ONE HAS SUFFERED A MISCARRIAGE BUT FOUR HAVE DELIVERED BABIES TWO OF THE BIRTHS WERE BY CAESAREAN SECTION AND ONE BY AN INDUCED VAGINAL DELIVERY AT 37 WEEKS OF PREGANCY ACCORDING TO A REPORT PUBLISHED IN THIS WEEK'S ISSUE OF THE LANCET EARLIER THIS WEEK THE FOURTH WOMAN DELIVERED A HEALTHY BABY THE REMAINING FOUR WOMEN HAVEN'T YET REACHED TERM OF THE 14 WOMEN IN THE EXPERIMENT THREE WERE ALREADY GRANDPARENTS NINE WERE MARRIED FOR THE SECOND TIME EIGHT HAD NEVER HAD A CHILD BUT SIX HAD PREVIOUSLY BEEN A MOTHERS THE NEW RESEARCH WAS REPORTED BY A TEAM LED BY MARK V SAUER AT WOMEN'S HOSPITAL IN LOS ANGELES THE SAME TEAM THAT LAST YEAR REPORTED THEY HAD HELPED 34 WOMEN BECOME PREGNANT AFTER THEY HAD PASSED MENOPAUSE THIS EARLIER GROUP CONTAINED MOSTLY WOMEN 42 TO 49 YEARS OF AGE WHO HAD UNDERGONE AN EARLY MENOPAUSE BUT INCLUDED ONE WOMEN AGED 50 AND ONE AGED 52 THE RESULTS SHOW THAT THERE CAN BE LITTLE DOUBT THAT THE UTERUS MAINTAINS AN ABILITY TO REMAIN RECEPTIVE TO EMBRYO IMPLANTATION AND THE DEVELOPOMENT OF NORMAL PREGNANCY WELL BEYOND THE LIMITS OF NATURAL REPRODUCTION THE TEAM SAID ALTHOUGH LITTLE IS KNOWN REGARDING THE EFFECT OF AGE ON PARENTING THE INDIVIDUALS ENROLLED IN THIS STUDY APPEARED EMOTIONALLY AND PHYSICALLY WELL EQUIPPED TO MEET THE CHALLENGE THEY SAID CERTAINLY MANY INDIVIDUALS HAVE BEEN RAISED TO MAJORITY AGE BY GRANDPARENTS IN A VARIETY OF CULTURES THEY NOTED 9302050124 930205 ASPIN PICKS PANEL TO STUDY PENTAGON SPENDING PLANS WASHINGTON DEFENSE SECRETARY LES ASPIN APPOINTED A PANEL OF EXPERTS FROM THE PRIVATE SECTOR TO REVIEW BASIC PENTAGON ASSUMPTIONS ABOUT DEFENSE SPENDING IN THE COMING YEARS THE THREEMEMBER PANEL WILL FOCUS ON THE ACCURACY OF CURRENT DEFENSECOST DATA AND ON THE POTENTIAL FOR FUTURE SAVINGS IT WILL BE LED BY PHILIP ODEEN PRESIDENT AND CHIEF EXECUTIVE OF BDM INTERNATIONAL INC A DEFENSE CONSULTING FIRM JEFFREY SMITH A WASHINGTON LAWYER WHO FORMERLY WAS GENERAL COUNSEL OF THE SENATE ARMED SERVICES COMMITTEE AND MORE RECENTLY WORKED ON DEFENSE ISSUES FOR THE CLINTON TRANSITION TEAM ALSO WILL SERVE ON THE PANEL THE THIRD MEMBER IS EDWARD C ALDRIDGE JR PRESIDENT AND CHIEF EXECUTIVE OF AEROSPACE CORP A LOS ANGELESBASED NONPROFIT CORPORATION THAT WORKS PRIMARILY FOR THE AIR FORCE MATERIEL COMMAND'S SPACE AND MISSILE SYSTEMS CENTER MR ALDRIDGE PREVIOUSLY WAS PRESIDENT OF MCDONNELL DOUGLAS CORP'S ELECTRONIC SYSTEMS CO A PENTAGON SPOKESMAN SAID MR ASPIN WANTS AN INDEPENDENT EVALUATION OF SOME OF THE CONTROVERSIAL ISSUES SUCH AS THE ACTUAL SAVINGS THAT CAN BE ACHIEVED THROUGH REORGANIZING DEFENSE SPENDING THE PANEL ALSO WILL LOOK AT THE ACCURACY OF ESTIMATES ON THE FUTURE COSTS OF WEAPONS NOW BEING DEVELOPED AND IT WILL CONSIDER THE POTENTIAL COST OF PENTAGON EFFORTS TO CLEAN UP ENVIRONMENTAL MESSES AT OLD MILITARY BASES DEPOTS AND ARSENALS THE SPOKESMAN SAID 9302050123 930205 PHILIPPINES ONCE THE FORGOTTEN RESORT OF SOUTHEAST ASIA SEES TOURISM REVIVE BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL MANILA VINCENTE CARLOS A MANILA BUSINESSMAN AND ATTORNEY WHO LAST SEPTEMBER WAS APPOINTED PHILIPPINE TOURISM SECRETARY RECENTLY WANTED TO VISIT A NEW BEACH RESORT OFFSHORE SOUTHERN MINDANAO BUT ALL THE ROOMS WERE BOOKED LATER MR CARLOS WHO ALSO IS CHAIRMAN OF THE COUNTRY'S CIVIL AERONAUTICS BOARD TRIED TO VISIT CEBU A RESORT ISLAND IN THE CENTRAL VISAYAS BUT ALL THE FLIGHTS WERE FULL WHAT'S GOING ON HERE THE PHILIPPINES LONG SOUTHEAST ASIA'S TOURISM WALLFLOWER SEEMS TO BE EDGING TOWARD THE DANCE FLOOR ALTHOUGH THE COUNTRY'S NUMBER OF VISITORS AND ANNUAL TOURISM RECEIPTS ARE DWARFED BY COMPARABLE FIGURES IN THAILAND SINGAPORE AND INDONESIA A VARIETY OF POSITIVE DEVELOPMENTS ARE RESTORING INTEREST IN THE COUNTRY AS A DESTINATION AND ATTRACTING NEW LOCAL AND OVERSEAS TOURISM INVESTMENTS SIGNS OF THE RENEWAL ARE EVERYWHERE NOT ONLY IN FULL FLIGHTS AND BUSY RESORTS FILIPINOS THEMSELVES ARE INVESTING IN NEW HOTELS AND RESORTS HOTELS BACKED BY FOREIGN INVESTORS ARE OPENING IN MANILA FOR THE FIRST TIME IN MORE THAN 15 YEARS THERE IS A VERY OPTIMISTIC ATTITUDE NOW IN THE PHILIPPINE TOURISM INDUSTRY SAYS JOSE CLEMENTE OWNER OF RAJAH TOURS PHILIPPINES A BIG TRAVEL AGENCY WE HAVE AN IMPROVED POLITICAL SITUATION WITH PRESIDENT FIDEL RAMOS OUR PEACE AND ORDER PROBLEMS EVENTUALLY WILL BE SOLVED MR CARLOS THE TOURISM SECRETARY ESTIMATES THAT FOREIGNVISITOR ARRIVALS LAST YEAR MET 1989'S RECORD OF NEARLY 12 MILLION ARRIVALS WILL JUMP TO 13 MILLION OR EVEN 15 MILLION THIS YEAR HE PREDICTS THE REASONS FOR THIS TURNAROUND ARE MANY ON THE DEMAND SIDE SOME TRAVELINDUSTRY SPECIALISTS BELIEVE TOURISTS ARE SOURING ON THAILAND AND OTHER BETTERKNOWN RESORT DESTINATIONS IN ASIA OR THEY SIMPLY ARE SEEKING SOMETHING NEW THE PHILIPPINES IS RELATIVELY CLOSE TO BIG TOURISTGENERATING MARKETS SUCH AS JAPAN TAIWAN HONG KONG AND KOREA AND IT IS CHEAP AND RELATIVELY UNSPOILED PEOPLE AROUND THE WORLD ARE STARTING TO HEAR ABOUT DESTINATIONS SUCH AS CEBU AND BOROCAY THE EXPERTS SAY FOR GOLFERS DIVERS GAMBLERS AND SUN WORSHIPPERS THE COUNTRY ALWAYS HAD A LOT TO OFFER MOREOVER THE PHILIPPINES HADN'T SUFFERED A COUP EARTHQUAKE OR MAJOR VOLCANIC ERUPTION FOR TWO YEARS TUESDAY'S MINOR ERUPTION OF MAYON VOLCANO NOTWITHSTANDING AND ELECTIONS LAST YEAR THAT USHERED IN MR RAMOS BOOSTED THE COUNTRY'S IMAGE ABROAD SAYS PATRICK GREGORIO A SALES EXECUTIVE AT THE MANILA HOTEL ON THE SUPPLY SIDE THE GOVERNMENT HAS MADE IT POSSIBLE FOR FOREIGNERS TO OWN THE HOTELS AND RESORTS THEY BUILD ALTHOUGH STILL NOT THE LAND UNDER THEM SO MORE ARE BUILDING FOREIGN INVESTORS CAN REPATRIATE THEIR PROFITS AND USUALLY CAN WIN TAX HOLIDAYS AND LOWER DUTIES ON IMPORTED MATERIALS LIMITS ON THE NUMBER OF EXPATRIATES WHO CAN BE HIRED BY HOTELS ARE BEING STUDIED AND MAY BE LIBERALIZED THE GOVERNMENT SEES TOURISM AS AN INDUSTRY THAT CAN LEAD ECONOMIC EXPANSION THUS IT IS TRYING TO SHIFT FUNDS INTO INFRASTRUCTURE THAT DIRECTLY AFFECTS TOURISM THINGS SUCH AS AIRPORTS PORTS AND ROADS THE WHOLE OUTLOOK IS MORE PROMISING SAYS GREGORIO KILAYKO PRESIDENT OF BARING SECURITIES PHILIPPINES INC THE GOVERNMENT HAS PROMISED TO PUMP MORE MONEY INTO THE ECONOMY THROUGH THE INFRASTRUCTURE ROUTE ONCE THE COUNTRY SOLVES ITS ELECTRICITY SHORTAGE YOU'LL SEE A VERY STRONG BUILDUP OF FOREIGN INVESTMENT HE SAYS AND AN INFLUX OF FOREIGN BUSINESSMEN FUELS TOURISM DEMAND WHICH CHANNELS FUNDS INTO THE TOURISM INDUSTRY MR CARLOS HASN'T BANISHED THE GOVERNMENT'S 20YEAR TOURISM MASTER PLAN COMPLETED IN 1991 UNDER THE ADMINISTRATION OF PRESIDENT CORAZON AQUINO TO A DUSTY SHELF EITHER THE PROGRAM CONTINUES TO GUIDE DEVELOPMENT EFFORTS ESPECIALLY FOR 5000ROOM TOURISM ESTATES PLANNED FOR PANGLAO ISLAND OFF BOHOL IN THE VISAYAS AND SAMAL ISLAND OFF THE COAST OF DAVAO MINDANAO THE GOVERNMENT NOW IS ACQUIRING THE LAND ONCE THE UTILITIES ARE PUT IN THE GOVERNMENT PLANS TO SUBDIVIDE THE LAND AND OFFER RESORT DEVELOPERS INCENTIVES TO BUILD AT THESE SITES AND THE PHILIPPINES HAS OPENED A FEW OF ITS PROVINCIAL AIRPORTS TO INTERNATIONAL FLIGHTS SOMETHING THAT MAKES TOURISTS' LIVES A LOT EASIER IT IS NOW POSSIBLE TO TAKE A CHARTER FLIGHT TO LAOAG FROM KAOHSIUNG TAIWAN OR TO FLY SCHEDULED SERVICES TO CEBU FROM HONG KONG AND FROM SINGAPORE A FEW CHARTERS HAVE LANDED AT SUBIC'S AIRPORT AND SCHEDULED FLIGHTS LINK DAVAO WITH THE INDONESIAN CITY OF MANADO OF COURSE THE PHILIPPINES STILL HAS A LONG WAY TO GO BEFORE BECOMING THE BELLE OF THE ASIAN TOURISM BALL AS ONE HOTELIER NOTES IT IS STILL DIFFICULT TO REACH TOURISM ENCLAVES IN THE PROVINCES PACKAGING THINGS SO THAT A TOURIST CAN TAKE A DIRECT FLIGHT FROM AN ASIAN CITY TO A PROVINCIAL PHILIPPINE TOWN HOP ON BUS OR FERRY FOR A SHORT RIDE AND THEN CHECK INTO A RESORT IS DIFFICULT AND FOR THE MOST PART SUCH SERVICES DON'T YET EXIST YOUR NORMAL 70 OF TOURISTS FROM DEVELOPED COUNTRIES DON'T WANT THE HASSLE OF GOING TO BOROCAY SAYS THE HOTELIER THAT'S BECAUSE THE TREK USUALLY INVOLVES AN OVERNIGHT STAY IN MANILA A DOMESTIC FLIGHT A BUS OR JEEP RIDE AND A BOAT TRIP THAT DEPOSITS THE TOURIST ANKLEDEEP IN WATER ON THE BEACH 9302050122 930205 ECONOMY ESTIMATE OF 1STQUARTER OIL DEMAND IS CUT BY INTERNATIONAL ENERGY AGENCY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE INTERNATIONAL ENERGY AGENCY LOWERED ITS ESTIMATE OF FIRSTQUARTER OIL DEMAND BECAUSE OF AN ACCELERATING FALL IN OIL USE IN THE FORMER SOVIET UNION THE PARISBASED AGENCY ESTIMATED YESTERDAY THAT FIRSTQUARTER WORLD OIL DEMAND WILL BE 300000 BARRELS A DAY LESS THAN ITS FORECAST OF A MONTH AGO AND DOWN A LIKE AMOUNT FROM A YEAR AGO THE IEA STILL EXPECTS OIL DEMAND FOR THE YEAR TO RISE SOME 600000 BARRELS A DAY FROM 1992'S RESTATED 669 MILLION BARRELS A DAY BUT THE FIRST QUARTER IS THE YEAR'S PEAKUSE PERIOD AND THE IEA'S LATEST FIGURES SUGGEST PETROLEUM CONSUMPTION IN THIS YEAR'S FIRST HALF WILL BE ESSENTIALLY FLAT WITH THE YEAREARLIER PERIOD THAT LEAVES THE BULK OF THE 1993 DEMAND GAINS TO BE ACCOUNTED FOR IN THE SECOND HALF AND IT ADDS TO PRESSURE ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHOSE OIL MINISTERS MEET NEXT SATURDAY IN VIENNA TO DECIDE ON SECONDQUARTER PRODUCTION LEVELS PETROLEUM PRICES HAVE BEEN FIRMING RECENTLY ON EXPECTATIONS THAT THE MINISTERS WILL AGREE TO REDUCE OUTPUT FROM THE CURRENT 25 MILLION BARRELS A DAY PRICES SURGED AGAIN YESTERDAY AFTER ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT REITERATED IN CARACAS THAT THERE WAS A CONSENSUS AMONG THE 12 MEMBER NATIONS FOR AN OUTPUT REDUCTION OF ONE MILLION BARRELS A DAY LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY LEAPED 37 CENTS A BARREL ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 2030 IN LONDON BRENT BLEND CRUDE FUTURES WERE UP 27 CENTS TO 31 CENTS IN ITS MONTHLY OIL MARKET REPORT RELEASED YESTERDAY THE IEA ESTIMATED WORLD DEMAND WILL AVERAGE 684 MILLION BARRELS A DAY THIS QUARTER COMPARED WITH 687 MILLION A DAY A YEAR AGO FIRSTQUARTER DEMAND IN THE INDUSTRIAL NATIONS WHICH MAKE UP THE ORGANIZATION OF ECONOMIC COOPERATION AND DEVELOPMENT OR OECD WILL AVERAGE 399 MILLION BARRELS A DAY THE IEA ESTIMATED THAT IS 100000 BARRELS A DAY LESS THAN ITS PREVIOUS PROJECTION THE WINTER HAS BEEN WARMER THAN EXPECTED IN THE US IT SAID BUT MOST OF THE DOWNWARD REVISIONS IN THE IEA'S DEMAND PROJECTIONS ARE FROM BIGGER DECLINES THAN PREVIOUSLY EXPECTED FOR RUSSIA AND THE OTHER FORMER SOVIET REPUBLICS THE IEA ESTIMATED DEMAND IN WHAT IS NOW KNOWN AS THE COMMONWEALTH OF INDEPENDENT STATES OR CIS AT 65 MILLION AND 62 MILLION BARRELS A DAY FOR THE FIRST AND SECOND QUARTERS THE DEMAND FIGURES ARE DOWN 200000 BARRELS A DAY FROM THE IEA'S PREVIOUS FORECASTS FOR THOSE PERIODS THE IEA SAID CIS DEMAND AVERAGED SEVEN MILLION BARRELS A DAY IN 1992 BUT DROPPED QUARTERLY THROUGHOUT THE YEAR THE AGENCY SAID HOWEVER THAT ON A YEARTOYEAR BASIS CIS DEMAND SHOULD BEGIN RISING AFTER THE LOW MARK OF THE 1993 FIRST QUARTER FOR THE REST OF 1993 YEARONYEAR DECLINES IN CIS DEMAND ARE EXPECTED TO BE SMALLER RESULTING IN OVERALL GROWTH IN TOTAL WORLD OIL DEMAND THE IEA SAID THE AGENCY ESTIMATES CIS DEMAND FOR ALL 1993 AT 62 MILLION BARRELS A DAY DOWN 100000 BARRELS A DAY FROM THE PRIOR ESTIMATE AND 800000 BARRELS A DAY BELOW THE 1992 LEVEL THESE FIGURES ARE IN LINE WITH OTHER ESTIMATES OF OIL CONSUMPTION IN THE FORMER SOVIET UNION AND THEY SUGGEST THAT OIL EXPORTS BY RUSSIA AND THE OTHER OILPRODUCING REPUBLICS WON'T DROP AS MUCH AS A CONTINUING PLUNGE IN PRODUCTION WOULD INDICATE ONE EXPERT ON CIS ENERGY MIKHAIL KORCHEMKIN PREDICTS OIL PRODUCTION WILL BE DOWN MORE THAN ONE MILLION BARRELS A DAY TO 76 MILLION OR 77 MILLION BARRELS A DAY THIS YEAR BUT FOREIGN EXPORTS OF OIL WILL DROP ONLY SOME 400000 BARRELS A DAY ESTIMATES MR KORCHEMKIN A FORMER SENIOR ENERGY RESEARCHER IN ESTONIA AND NOW A VISITING PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA SIMILAR PROJECTIONS COME FROM EUGENE M KHARTUKOV CHIEF OF THE WORLD ENERGY ANALYSIS AND FORECASTING GROUP IN MOSCOW MR KHARTUKOV FORECASTS CRUDE OIL PRODUCTION OF 76 MILLION TO 78 MILLION BARRELS A DAY THIS YEAR BUT HE ESTIMATES NET OIL EXPORTS WILL AVERAGE 12 MILLION TO 15 MILLION BARRELS A DAY A DECLINE OF 300000 TO 600000 BARRELS A DAY 9302050121 930205 ACTIVIST GROUP ACCUSES INSURERS OF REDLINING' CHARGES OF DISCRIMINATION IN POOR NEIGHBORHOODS SPARK PLAN FOR HEARINGS BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A COMMUNITY ACTIVIST GROUP CHARGED INSURANCE COMPANIES WITH SYSTEMATIC DISCRIMINATION AGAINST MINORITIES AND PEOPLE IN LOWINCOME NEIGHBORHOODS SPARKING PLANS FOR CONGRESSIONAL HEARINGS TO ADDRESS THE PROBLEM OF REDLINING THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN ALLEGED IN A STUDY OF 13 METROPOLITAN AREAS THAT PEOPLE LIVING IN LOWINCOME NEIGHBORHOODS PARTICULARLY MINORITIES WERE CHARGED HIGHER PREMIUMS OFFERED INFERIOR COVERAGE OR DUMPED INTO INSURANCE COMPANY POOLS FOR ALL TYPES OF HOMEOWNER INSURANCE THE POOLS CONTROLLED BY THE FAIR ACCESS TO INSURANCE REQUIREMENT AND CALLED FAIR PLANS WERE INITIATED TO PROVIDE COVERAGE FOR HIGHRISK AREAS WHERE INSURANCE COMPANIES WOULDN'T WRITE POLICIES HOWEVER THE ACORN STUDY FOUND PEOPLE IN LOWINCOME AREAS WERE DUMPED INTO FAIR PLAN POLICIES BY COMPANIES REGARDLESS OF RISK INCLUDING ONE SAMPLE IN WHICH ALL THE SURVEY CALLERS WITHIN THE DETROIT CITY LIMITS WERE TRANSFERRED TO THE FAIR PLAN ACORN AN ACTIVIST GROUP FOR LOWINCOME NEIGHBORHOODS ALSO FOUND IN THE STUDY THAT FAIR PLAN POLICIES CONSISTENTLY OFFERED LOWER SERVICES FOR HIGHER PREMIUMS THAN IN HIGHERINCOME WHITE NEIGHBORHOODS THE ACORN SURVEY ON INSURANCE FOLLOWS STUDIES THAT HAVE DOCUMENTED REDLINING IN OTHER AREAS INCLUDING A NEW YORK REPORT THAT FOUND PEOPLE LIVING IN MINORITY AND LOWINCOME NEIGHBORHOODS WERE BEING REDLINED INTO PAYING HIGHER PREMIUMS FOR AUTO INSURANCE BANK LOANS AND BUSINESS INSURANCE ALSO HAVE BEEN TARGETED IN STUDIES AND BY LEGISLATORS FOR REDLINING THE SURVEY WAS CONDUCTED BY ACORN VOLUNTEERS CALLING INSURANCE COMPANIES FOR ESTIMATES ON VARIOUS PROPERTIES LOCATED IN VARIOUS DEMOGRAPHIC NEIGHBORHOODS IN THE SAME CITIES INSURANCE INDUSTRY OFFICIALS DENOUNCED REDLINING NOTING THAT THE PRACTICE IS ILLEGAL BUT IN RESPONDING TO ACORN'S ALLEGATIONS MARC H ROSENBERG VICE PRESIDENT OF THE INSURANCE INFORMATION INSTITUTE A TRADE GROUP SAID THE PORTION OF THE POPULATION THAT CANNOT FIND INSURANCE IS VERY SMALL AND HAS BEEN SHRINKING STEADILY IN RECENT YEARS THE METHODOLOGY OF THE STUDY WHICH COMBINED VOLUNTEER PHONE SURVEYS OF POLICY INFORMATION AND STATEWIDE STATISTICS WAS ALSO QUESTIONED BY INSURANCE OFFICIALS FOR FAILING TO ACCOUNT FOR RISK FACTORS SUCH BURGLARY ARSON AND FIREPROTECTION SERVICES MR ROSENBERG ALSO DENIED IMPLICATIONS OF DISCRIMINATION ON THE BASIS OF RACE SAYING INSURANCE COMPANIES ARE BASICALLY COLORBLIND REP CARDISS COLLINS CHAIRWOMAN OF THE HOUSE CONSUMER PROTECTION SUBCOMMITTEE CONDEMNED THE OUTRAGEOUS PRACTICES OF REDLINING THE ILLINOIS DEMOCRAT'S PANEL WHICH HAS JURISDICTION OVER INSURANCE PLANS TO HOLD HEARINGS ON THE SUBJECT IN LATE FEBRUARY OR EARLY MARCH TO LOOK INTO THE ALLEGATIONS AND EXPLORE POSSIBLE LEGISLATIVE AND JUDICIAL REMEDIES REDLINING ORIGINATED WITH THE PRACTICE OF BUSINESSES OUTLINING CERTAIN AREAS IN RED AND REFUSING TO DEAL WITH PEOPLE LIVING IN THOSE AREAS 9302050120 930205 POLITICS & POLICY CLINTON PICKS KIMBA WOOD FOR JUSTICE POST JUDGE IN MILKEN CASE LIKELY TO BE NOMINATED SOON FOR ATTORNEY GENERAL BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAS CHOSEN FEDERAL JUDGE KIMBA WOOD OF NEW YORK AS HIS NOMINEE FOR ATTORNEY GENERAL THE 49YEAROLD MS WOOD HAS BEEN A FEDERAL DISTRICT JUDGE SINCE 1988 AND IS BEST KNOWN FOR PRESIDING OVER THE SECURITIES FRAUD CASE OF JUNKBOND KING MICHAEL MILKEN AS THE NEW NOMINEE FOR ATTORNEY GENERAL SHE REPLACES CORPORATE LAWYER ZOE BAIRD WHO WITHDREW HER NAME FROM CONSIDERATION AFTER DISCLOSING THAT SHE HAD HIRED ILLEGAL ALIENS AND DIDN'T PAY THEIR SOCIAL SECURITY TAXES MS WOOD RECEIVED CRITICISM FOR AT FIRST GIVING MR MILKEN A HARSH 10YEAR SENTENCE AND THEN LATER REDUCING IT TO WHAT SOME THOUGHT WAS A TOO LENIENT TWOYEAR SENTENCE AFTER MR MILKEN COOPERATED EXTENSIVELY WITH PROSECUTORS BUT MR CLINTON IS BELIEVED TO HAVE FELT THAT BOTH DECISIONS WERE SOLID AND EASILY DEFENSIBLE YESTERDAY THE WHITE HOUSE ASKED THE FEDERAL BUREAU OF INVESTIGATION TO CHECK INTO MS WOOD'S RECORD AND AN ANNOUNCEMENT ABOUT HER NOMINATION IS EXPECTED SOON THE SELECTION OF MS WOOD WILL PLEASE WOMEN'S GROUPS WHICH WERE CAMPAIGNING HARD FOR MR CLINTON TO NAME ANOTHER WOMAN TO THE HIGHRANKING CABINET POST BUT MR CLINTON ALSO CONSIDERED MEN FOR THE JOB AND THE FBI HAD BEEN ASKED LAST FRIDAY TO CHECK INTO THE BACKGROUND OF WASHINGTON LAWYER CHARLES RUFF MS WOOD A MODERATE DEMOCRAT WAS APPOINTED TO THE BENCH BY PRESIDENT REAGAN SHE HAS BEEN PRAISED FOR HANDLING A LONG SERIES OF COMPLICATED CASES LIKE MR MILKEN'S EFFICIENTLY AND WITHOUT BEING OVERTURNED BY HIGHER COURTS SHE KNOWS QUITE A LOT ABOUT HOW TO MANAGE SAID HARVARD LAW SCHOOL PROFESSOR LAWRENCE TRIBE WHO WAS HIRED BY MR MILKEN'S TEAM AS A CONSULTANT I WAS EXTREMELY IMPRESSED PRIOR TO HER SERVICE IN MANHATTAN'S FEDERAL COURT SHE WAS A WELLREGARDED CORPORATE LITIGATOR WITH THE LAW FIRM LEBOEUF LAMB LEIBY & MACRAE SPECIALIZING IN ANTITRUST LAW SHE ALSO WORKED BRIEFLY FOR THE LEGAL SERVICES CORP SHE IS THE MOTHER OF A YOUNG CHILD AND THE WIFE OF TIME MAGAZINE POLITICAL CORRESPONDENT MICHAEL KRAMER AT LEBOUEF LAMB SHE REPRESENTED THE UNDERWRITERS LLOYD'S OF LONDON ONE OF LEBOEUF LAMB'S MAJOR INSURANCE CLIENTS AND ST REGIS CORP A PAPER COMPANY THAT WAS THE TARGET OF SEVERAL MUCHTALKEDABOUT ANTITRUST SUITS IN THE LATE 1970S SHE MADE HER MARK IN ANTITRUST CASES ESPECIALLY LARGE COMPLEX CASES SHE WAS TOP DRAWER SAID TAYLOR BRIGGS WHO WAS CHAIRMAN OF LEBOEUF LAMB WHEN MS WOOD JOINED THE FIRM SHE WAS THOROUGH AND HARD WORKING BUT ALSO A VERY NICE PERSON A CHARACTERISTIC THAT MATTERS EVEN TO ANTITRUST LAWYERS SOON AFTER JOINING THE BENCH IN 1988 JUDGE WOOD DELIVERED A DECISION FOR WHICH HER INDEPENDENCE WAS PRAISED THE IMMIGRATION AND NATURALIZATION SERVICE AN AGENCY SHE WOULD OVERSEE AS ATTORNEY GENERAL HAD DENIED POLITICAL ASYLUM TO A GHANIAN BECAUSE HE HAD ALLEGEDLY COMMITTED TREASON AGAINST THE GOVERNMENT OF THE WEST AFRICAN NATION JUDGE WOOD RULED THAT TREASON AGAINST ANOTHER COUNTRY WASN'T A CRIME THAT EXCLUDED A PERSON FROM THE PROTECTION OF US ASYLUM IN HER DECISION JUDGE WOOD SAID THAT IN SOME COUNTRIES A COUP MAY BE THE ONLY MEANS BY WHICH POLITICAL CHANGE CAN BE EFFECTED AS ATTORNEY GENERAL JUDGE WOOD WOULD HAVE A DIRECT SAY IN THE WAY THE CLINTON ADMINISTRATION TREATS HAITIAN REFUGEES SEEKING POLITICAL ASYLUM MS WOOD WAS EDUCATED AT CONNECTICUT COLLEGE THE SORBONNE AT THE UNIVERSITY OF PARIS THE LONDON SCHOOL OF ECONOMICS AND THE HARVARD LAW SCHOOL SHE HAS BEEN ACTIVE WITH THE ANTITRUST SECTION OF THE AMERICAN BAR ASSOCIATION AND THE AMERICAN LAW INSTITUTE WADE LAMBERT IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9302050119 930205 MARKETING SPORTING GOODS SHOW TIME BY ELEENA DE LISSER THE SPORTINGGOODS BUSINESS HAVING SLIMMED DOWN CONSIDERS WAYS TO WIN OVER SHOPPERS WITH SLIMMEDDOWN WALLETS A PROJECTED 90000 INDUSTRY REPRESENTATIVES WILL GATHER IN ATLANTA THIS WEEKEND FOR THE ANNUAL SUPER SHOW A COLLECTION OF 9000 BOOTHS FEATURING THE LATEST IN FITNESS EQUIPMENT SPORTS APPAREL AND FOOTWEAR THE INDUSTRY'S SALES SHOULD CLIMB ABOUT 5 THIS YEAR TO 342 BILLION ACCORDING TO THE SPORTING GOODS MANUFACTURERS ASSOCIATION A TRADE GROUP IN NORTH PALM BEACH FLA THAT'S A SLIGHT ACCELERATION FROM 1992'S 45 INCREASE BUT STILL WELL BELOW THE DOUBLEDIGIT GAINS OF THE 1980S THE INDUSTRY'S MODERATE GROWTH IN RECENT YEARS HAS PROMPTED MANY COMPANIES TO SLASH INVENTORIES THOSE CUTBACKS COMBINED WITH LOW INTEREST RATES THAT HAVE MADE DEBT BURDENS MORE MANAGEABLE HAVE LEFT MANY SPORTINGGOODS COMPANIES POSITIONED FOR MORE PROFITABLE DAYS SAYS JOHN HORAN EDITOR OF THE NEWSLETTER SPORTING GOODS INTELLIGENCE THE BIGGEST INCREASE IN CONSUMER DEMAND OVER THE NEXT SEVERAL YEARS IS LIKELY TO COME IN SPORTS EQUIPMENT PARTICULARLY HOMEEXERCISE GEAR FOR WEIGHTCONSCIOUS BABY BOOMERS INDUSTRY EXECUTIVES SAY FOR THIS YEAR THE SPORTINGGOODS MANUFACTURERS' GROUP PROJECTS SALES OF FITNESS EQUIPMENT WILL RISE 45 TO 116 BILLION THAT INCREASE IS ON A PAR WITH TWO CATEGORIES IN WHICH GROWTH HAS SLOWED FROM THE LATE '80S APPAREL PROJECTED TO RISE BETWEEN 45 AND 5 THIS YEAR TO ABOUT 145 BILLION AND FOOTWEAR EXPECTED TO CLIMB 4 TO 79 BILLION MANY INDUSTRY EXECUTIVES SAY THEY ARE OPTIMISTIC IN THE NEAR TERM BUT SOME CLOUDS HOVER OVER THE SHOW A SURVEY BY KURT SALMON ASSOCIATES AN ATLANTA CONSULTING FIRM INDICATES THE NUMBER OF SPORTINGGOODS OUTLETS IS EXPECTED TO PEAK AT ABOUT 21000 STORES IN 1995 AND THEN SHRINK TO SOME 18000 STORES BY 2010 THAT LARGELY REFLECTS THE GROWING PROPORTION OF BIGGER OUTLETS AND CHAINS ANOTHER THREAT TO THE INDEPENDENT RETAILER COMES FROM MANUFACTURERS SUCH AS NIKE AND REEBOK INTERNATIONAL WHICH OWN AND OPERATE A HANDFUL OF THEIR OWN STORES AND ARE LIKELY TO EXPAND SQUEEZED FOR TIME MORE FITNESS BUFFS ARE DECIDING TO STAY AT HOME ELABORATE GYMS THAT OCCUPY BASEMENTS AND BEDROOMS ARE AMONG THE BEST SELLERS IN THE SPORTINGGOODS INDUSTRY ONE BIG ATTRACTION IS THE TIME SAVED FROM THEIR OWNERS NOT HAVING TO GO TO THE HEALTH CLUB SAYS MR HORAN AT SPORTING GOODS INTELLIGENCE A STATIONARY BICYCLE USED TO BE ENOUGH FOR MOST PEOPLE BUT THE OVER40 SET IS DECIDING THEIR HEART NEEDS A TREADMILL SAYS ELLIE BALLEW A SPOKESWOMAN FOR PRECOR A BOTHELL WASH MAKER OF EXERCISE EQUIPMENT OWNED BY PREMARK INTERNATIONAL SALES OF TREADMILLS ROSE 19 IN 1991 THE LATEST YEAR FOR WHICH FIGURES ARE AVAILABLE TO 550 MILLION REPORTS THE NATIONAL SPORTING GOODS ASSOCIATION A TRADE GROUP IN MOUNT PROSPECT ILL SALES OF STAIRCLIMBERS JUMPED 44 TO 1948 MILLION IN 1991 THE APPEAL AND PRICES OF MANY OF THE DEVICES IS HEIGHTENED BY THEIR ABUNDANT BELLS AND WHISTLES INDUSTRY CONSULTANTS SAY HEARTRATE MONITORS AND DIGITAL READOUTS OF CALORIES BURNED AND DISTANCE TRAVELED HAVE BECOME COMMON ONE CASUALTY IN ALL THIS SWEATING AND STRAINING HAS BEEN THE ROWING MACHINE WHOSE SALES PLUNGED 85 TO 378 MILLION IN 1991 FROM A PEAK OF 2451 MILLION IN 1985 INDUSTRY EXECUTIVES SAY THE MACHINES SIMPLY BORE MANY USERS WHILE PUTTING TOO MUCH STRAIN ON SOME PEOPLE'S BACKS AFTER YEARS OF PRODUCING CLOTHING WITH THE LOGOS OF PROFESSIONAL AND COLLEGIATE TEAMS MAKERS OF LICENSED APPAREL ARE CREATING OR PUTTING NEW EMPHASIS ON THEIR OWN BRANDS THE 9 BILLIONAYEAR LICENSEDMERCHANDISE BUSINESS CONTINUES TO GROW AT A DOUBLEDIGIT CLIP BUT THE FIELD IS BECOMING CLUTTERED SOME INDUSTRY EXECUTIVES SAY MANUFACTURERS THAT WILL PROSPER IN THE YEARS AHEAD ARE THOSE WHOSE OWN NAMES HAVE STRONG RECOGNITION SUCH AS CHAMPION AND STARTER SAYS LARRY WEINDRUCH A SPOKESMAN FOR THE NATIONAL SPORTING GOODS ASSOCIATION STARTER KNOWN PRIMARILY FOR ITS JACKETS BEGAN A NATIONAL AD CAMPAIGN LAST YEAR PROMOTING ITS NAME THIS FALL FOR THE FIRST TIME THE NEW HAVEN CONN COMPANY WILL DISTRIBUTE A COLLECTION OF SPORTS APPAREL PROMINENTLY BEARING ITS OWN NAME AND LOGO THE LINE WILL INCLUDE SUCH BASICS AS TSHIRTS SWEAT SHIRTS AND SWEAT PANTS AS WELL AS MORE TRENDY COLORFUL ITEMS LIKE AN OUTDOOR LINE AND GARMENTS WITH MORE GRAPHICS IN THE LICENSED END IT WAS THE TRADITIONAL TEAM COLORS SAYS STAN BRAJER NATIONAL SALES MANAGER FOR THE STARTER BRAND DIVISION ON THIS END WE CAN GO WITH THE FASHION TRENDS A LITTLE MORE CHAMPION A ROCHESTER NY UNIT OF SARA LEE CORP PLANS TO INTRODUCE A LINE OF CASUAL APPAREL WITH MORE COLORS AND GRAPHICS THAN ITS CURRENT SWEATS THE GAME A SUBSIDIARY OF CLOSELY HELD WC BRADLEY IN COLUMBUS GA WILL ADD ITS OWN BRAND OF CLOTHING TO ITS CURRENT VARIETY OF PRO AND COLLEGE LICENSED MERCHANDISE THE NEWPRODUCT SECTION OF THE SUPER SHOW WILL SPOTLIGHT A SLEW OF WORKOUT WEAPONS SPORTS ENTHUSIASTS CAN ADD TO THEIR FITNESS ARSENALS MPK SPORTGERATE OF MUNICH GERMANY WILL DISPLAY A TELEBIKE COMPUTER TRAINER THAT COMES WITH A 3D COLOR MONITOR AND CHOICE OF SIX LANDSCAPES CONSUMER ADVANTAGE OF TUCKER GA WILL DISPLAY A 1295 WASHABLE SWEATBAND THAT HAS BUILTIN HEADPHONES FOR THOSE WHO WOULD RATHER WATCH THAN PARTICIPATE EXTENDAVIEW HIALEAH FLA OFFERS THE MAGNIVISOR FOR 2995 WHEN ACTIVATED A MECHANISM ATTACHED TO THE VISOR LOWERS A SET OF PLASTIC LENSES IN FRONT OF THE EYES TO BECOME A PAIR OF BINOCULARS 9302050118 930205 TECHNOLOGY CANCER INSTITUTE PLANS TO LAUNCH STUDIES ON CELLULAR PHONES THE NATIONAL CANCER INSTITUTE SAID IT WOULD LAUNCH STUDIES INTO CELLULAR PHONES AND BRAIN CANCER AS THE CELLULAR PHONE INDUSTRY CONTINUED ITS SCRAMBLE TO REASSURE CUSTOMERS THEIR PHONES ARE SAFE NOTING THAT TO DATE THERE HAVE BEEN NO DEFINITIVE STUDIES LINKING CELLULAR TELEPHONES TO BRAIN CANCER THE INSTITUTE SAID IT WILL DO A COMPREHENSIVE CASECONTROL STUDY WITHIN THE YEAR TO ASSESS THE EXPOSURE OF ADULTS WITH BRAIN CANCER TO CELLULAR TELEPHONES MEANWHILE A FOOD AND DRUG ADMINISTRATION OFFICIAL DISPUTED STATEMENTS BY THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION AND OTHER INDUSTRY PLAYERS SUCH AS MOTOROLA INC THAT THERE ARE THOUSANDS OF STUDIES PROVING HANDHELD CELLULAR PHONES WITH TRANSMITTERS IN THEIR HANDSETS ARE SAFE I DON'T KNOW WHERE THEY GET THOUSANDS AND THOUSANDS OF STUDIES SAID ELIZABETH JACOBSON ACTING DIRECTOR OF THE FDA'S CENTER FOR DEVICES AND RADIOLOGICAL HEALTH AN FDA STATEMENT YESTERDAY NOTED THAT STUDIES ON LOWER LEVELS OF RADIO WAVES SUCH AS THOSE FROM CELLULAR PHONES SUGGEST THAT THEY CAN ACCELERATE THE DEVELOPMENT OF CANCER IN LABORATORY ANIMALS THERE MAY BE STUDIES FROM PHYSICISTS SAID MS JACOBSON BUT IN THE BIOLOGY AREA THAT'S NOT TRUE WE HAVE A FEW STUDIES ON ANIMALS THAT GIVE US PAUSE SHE NOTED THERE ARE SOME EXPERIMENTS IN WHICH MICROWAVE RADIATION PROMOTED TUMORS IN MICE SHE SAID THE FDA IN A FEW WEEKS WILL ASK PHONE MANUFACTURERS TO MEET WITH THE AGENCY AND EXPLAIN WHAT THEY CAN DO TO THEIR EQUIPMENT TO LIMIT EXPOSURE TO RADIO WAVES BY USERS OF THE PHONES 9302050117 930205 TWO GROUPS CLASH OVER ISSUE OF COST OF LONGTERM CARE BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO SPECIALINTEREST GROUPS ENTERED THE FRAY OVER HEALTHCARE REVISION CLASHING OVER THE AFFORDABILITY OF INSURANCE FOR LONGTERM STAYS IN NURSING HOMES FAMILIES USA A HEALTHCARE REFORM ADVOCACY GROUP RELEASED A REPORT EARLIER THIS WEEK SAYING THAT AN OVERWHELMING MAJORITY OF AMERICANS OVER THE AGE OF 65 ARE UNABLE TO AFFORD INSURANCE TO COVER LONGTERM NURSINGHOME CARE THE HEALTH INSURANCE ASSOCIATION OF AMERICA QUICKLY COUNTERED THE REPORT DISPUTING THE FINDINGS CATEGORICALLY AND QUESTIONING THE STUDY'S METHOD HOWEVER BOTH SIDES CONCEDED THAT LONGTERM HEALTH CARE IN LIGHT OF A GRAYING POPULATION AND SHORTCOMINGS IN THE NATIONAL HEALTHCARE SYSTEM IS RIPE FOR REFORM ADVISERS TO PRESIDENT CLINTON SAY THE PRESIDENT WANTS TO ADDRESS THE PROBLEM IN HIS BROAD HEALTHCARE PROPOSAL THE FAMILIES USA REPORT WHICH DIVIDED INSURANCE INTO TWO CATEGORIES CHARGES THAT 85 OF ELDERLY AMERICANS CANNOT AFFORD INSURANCE WITH LOW PREMIUMS AND HIGH COPAYMENTS AND 97 OF AMERICANS CANNOT AFFORD INSURANCE WITH LOW COPAYMENTS AND HIGH PREMIUMS YOU'RE EITHER GOING TO GET SOCKED IN THE FRONT END WITH THE PREMIUM OR IN THE BACK END WITH THE COPAYMENT SAID RON POLLACK EXECUTIVE DIRECTOR OF FAMILIES USA WHO EQUATED THE PROTECTION WITH BUYING AN EXPENSIVE COCKTAIL UMBRELLA TO KEEP YOU DRY IN A TROPICAL STORM THE GROUP BACKS A PUBLIC HEALTHCARE SYSTEM TO RELIEVE THE FINANCIAL BURDENS OF LONGTERM CARE THE INSURANCE ASSOCIATION DISPUTED THE REPORT STATING THAT ROUGHLY 60 OF ALL ELDERLY AMERICANS CAN AFFORD THE INSURANCE AND CHARGING FAMILIES USA WITH MANIPULATING THE NUMBERS TO SUPPORT ITS POSITION WHICH THE ASSOCIATION CLAIMED WOULD COST BETWEEN 43 BILLION AND 73 BILLION A YEAR TO OPERATE THE FAMILIES USA REPORT WAS PAID FOR BY GRANTS FROM THE PUBLIC WELFARE FOUNDATION INC AND THE US ADMINISTRATION ON AGING FAMILIES USA SAID THAT IF THE PREMIUMS ARE MORE THAN 5 OF AN INDIVIDUAL'S INCOME OR IF THE COPAYMENTS ARE MORE THAN AN INDIVIDUAL'S ENTIRE INCOME THE INSURANCE IS CONSIDERED UNAFFORDABLE THE INSURANCE ASSOCIATION REJECTED THE FIGURES CALLING 5 ARBITRARY AND SAYING THAT 61 OF THOSE WITH LONGTERM HEALTHCARE INSURANCE PAID LESS THAN 1000 A YEAR FOR PREMIUMS DESPITE THE DISPARITY OF COSTS NUMBERS AND PERCENTAGES BOTH GROUPS AGREE ON ONE FIGURE SINCE 1987 ONLY 24 MILLION LONGTERM POLICIES HAVE BEEN SOLD TO THE NEARLY 30 MILLION AMERICANS OVER 65 LEAVING TENS OF MILLIONS WITHOUT ANY PROVISION FOR LONGTERM CARE THE ANSWER TO THE PROBLEM LIES BETWEEN THE EXTREMES ACCORDING TO JIM FIRMAN PRESIDENT OF UNITED SENIORS AN ADVOCACY GROUP FOR THE ELDERLY MR FIRMAN DISCOUNTS THE FAMILIES USA ESTIMATE AS TOO LOW AND THE INSURANCE ASSOCIATION ESTIMATE AS TOO HIGH HE SAID THE PROBLEM WOULD BEST BE SOLVED THROUGH A COOPERATIVE EFFORT OF PUBLIC AND PRIVATE INTERESTS THE TRUTH HE SAID IS SOMEWHERE IN THE MIDDLE 9302050115 930205 REPORT SAYS TAXPAYERS MAY PAY PRICE OF BAILING OUT FEDERAL PENSION INSURER BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF THE GOVERNMENT'S PENSION INSURER NEEDS A CASH SOLUTION TO ITS MOUNTING LOSS PROBLEMS FORGET BIG INCREASES IN EMPLOYER PREMIUMS GO DIRECTLY TO THE TAXPAYER THAT'S THE MESSAGE IN A STUDY OF THE PENSION BENEFIT GUARANTY CORP PREPARED BY THE CONGRESSIONAL BUDGET OFFICE FOR A HEARING BEFORE A HOUSE SUBCOMMITTEE THE HEARING BY THE HOUSE WAYS AND MEANS COMMITTEE UNIT DELVED INTO HOW TO REMEDY THE SIZABLE UNDERFUNDING OF PENSION PLANS BY MANY COMPANIES THAT IS HELPING TO EXPAND THE PENSION INSURANCE PROGRAM'S DEFICIT THE PENSION AGENCY HAS WARNED THAT WITHOUT LEGISLATION TO NARROW THAT UNDERFUNDING HUGE PREMIUM INCREASES FOR WELLHEELED AND STRUGGLING EMPLOYERS ALIKE MAY BE NEEDED TO CURE ITS DEFICIT PROBLEM BUT THE BUDGET OFFICE DECLARED IN ITS REPORT THAT BY PROCESS OF ELIMINATION THE US TAXPAYER LOOKS INCREASINGLY LIKE THE RESIDUAL BEARER OF ACCUMULATED LOSSES FROM THE FEDERAL PENSION INSURANCE PROGRAM THE DIFFICULTY WITH TRYING TO COVER LOSSES WITH HEFTY PREMIUM INCREASES THE BUDGET OFFICE SAID IS THAT THE CORPORATE SPONSORS OF THE DEFINEDBENEFIT PLANS WOULD PROBABLY REACT TO THE INCREASES BY LEAVING THE INSURANCE POOL THEY MIGHT SCRAP THEIR DEFINEDBENEFIT PLANS AND SET UP DIFFERENT TYPES OR THE PENSION AGENCY WARNED THEY MIGHT NOT CREATE ANY REPLACEMENT PENSION PLANS THEREFORE THE CBO CONCLUDED THE CHANCES OF FINDING OTHER SOURCES OF FUNDING BESIDES TAX REVENUES ARE SLIM IT SAID THAT FARSIGHTED FISCALLY SOUND PREMIUM PAYERS WILL NOT VOLUNTARILY SUBSIDIZE THE PENSION COSTS OF THEIR COMPETITORS INDEFINITELY AS A RESULT A VOLUNTARY FEDERAL INSURANCE SYSTEM THAT RELIES HEAVILY ON SUBSIDIES FROM ONE INSURED FIRM TO ANOTHER IS PROBABLY DESTINED FOR A TAXPAYER BAILOUT THE REPORT SAID TESTIFYING BEFORE THE SUBCOMMITTEE HOWEVER CBO DIRECTOR ROBERT REISCHAUER DIDN'T MENTION A GENERAL TAXPAYER ROLE WITHOUT LEGISLATIVE REFORMS HE SAID THE INSURANCE AGENCY'S DEFICIT WHICH WAS 25 BILLION AS OF LAST SEPT 30 IS EXPECTED TO INCREASE BY TENS OF BILLIONS OF DOLLARS IF THE LOSSES KEEP PILING UP AND PLAN SPONSORS KEEP LEAVING THE SYSTEM AS SOME HAVE ALREADY DONE AN INVOLUNTARY ASSESSMENT OR TAX MAY BE NECESSARY MR REISCHAUER SAID THE REPORT SUGGESTED THIS COULD INVOLVE FOR INSTANCE A ONETIME LUMPSUM ASSESSMENT ON ALL INSURED COMPANIES BUT THIS COULD SPUR FURTHER FLIGHT FROM THE DEFINEDBENEFIT PENSION SYSTEM HE SAID WE CAN'T LOOK ON THE WELLFUNDED PLANS AS A CASH COW TO BE MILKED TO COVER OTHER PLANS' LOSSES HE DECLARED IN A DEFINEDBENEFIT PLAN THE EMPLOYER PROMISES RETIREES A SPECIFIC MONTHLY PENSION PAYMENT AND HAS TO COME UP WITH THE MONEY TO FINANCE THOSE PAYMENTS THE PENSION BENEFIT GUARANTY CORP INSURES ABOUT 900 BILLION OF THE 13 TRILLION IN DEFINEDBENEFIT PLANS WHICH IS ABOUT HALF THE VALUE OF ALL PRIVATE PENSION PLANS 9302050113 930205 JACOBS ENGINEERING WINS PACT PASADENA CALIF JACOBS ENGINEERING GROUP INC SAID IT RECEIVED A CONTRACT FROM EXXON CO USA A UNIT OF EXXON CORP TO PROVIDE ENGINEERING AND CONSTRUCTION SERVICES FOR A NEW PRODUCTION FACILITY AT EXXON'S BENICIA CALIF REFINERY TERMS WEREN'T DISCLOSED THE FACILITY WILL PRODUCE METHYL TERTIARY BUTYL ETHER OR MTBE A HIGHOCTANE BLENDING COMPONENT USED IN REFORMULATED GASOLINES TO REDUCE POLLUTANTS THE NEW FACILITY WILL HAVE A CAPACITY OF 2000 TO 4000 THOUSAND BARRELS OF STEAM A DAY OF MTBE 9302050112 930205 PEPPER AND SALT WILL SOON BE COFFEE BROKEN THE PLAY'S MORE APPLAUDABLE POSTELECTION TRAUMA CAMPAIN 9302050111 930205 FIRST CHICAGO PLANS TO SELL 1 BILLION OF BAD ASSETS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL FIRST CHICAGO CORP HAS STRUCK A TENTATIVE DEAL TO SELL ABOUT 1 BILLION OF A 19 BILLION POOL OF BAD REALESTATE LOANS AND PROPERTIES YET ANOTHER INDICATION THE MARKET FOR GIANT PORTFOLIOS OF DISTRESSED REAL ESTATE IS IMPROVING THE PROSPECTIVE BUYER ACCORDING TO INDIVIDUALS FAMILIAR WITH THE TALKS IS GE CAPITAL A UNIT OF GENERAL ELECTRIC CORP IN FAIRFIELD CONN PROBABLY THE BIGGEST OF THE SOCALLED VULTURE REALESTATE BUYERS THE NEGOTIATIONS FIRST REPORTED IN AMERICAN BANKER YESTERDAY WOULD PRICE THE ASSETS WITHIN THE 45 TO 55 RANGE THAT SIMILAR ASSETS HAVE CHANGED HANDS RECENTLY ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE TALKS OFFICIALS AT BOTH GE CAPITAL AND FIRST CHICAGO DECLINED TO COMMENT ON THE DEAL FIRST CHICAGO A BANK HOLDING COMPANY IN CHICAGO HAS ALREADY DISPOSED OF 190 MILLION OF THE 21 BILLION IN FORECLOSED PROPERTY AND PROBLEM LOANS IT PUT ON THE BLOCK LAST SEPTEMBER BECAUSE THE BANK HAS ALREADY WRITTEN DOWN THE ASSETS TO ABOUT 50 OF FACE VALUE THE GE CAPITAL DEAL IS NOT EXPECTED TO MATERIALLY AFFECT THE BANK'S EARNINGS IF THE DEAL GETS DONE IT'S A GOOD DEAL FOR FIRST CHICAGO SAID CRAIG HATKOFF MANAGING PARTNER OF VICTOR CAPITAL GROUP IN NEW YORK WHICH SPECIALIZES IN REAL ESTATE FINANCING THERE'S BEEN A LOT OF SKEPTICISM ABOUT WHETHER THEY CAN MOVE 2 BILLION OF ASSETS FIRST CHICAGO HAD ALSO BEEN NEGOTIATING WITH THREE OTHER INSTITUTIONAL BUYERS ABOUT THE SALE ACCORDING TO ONE OF THE BIDDERS WHO SAID HE WAS INFORMED RECENTLY BY FIRST CHICAGO THAT IT HAD REACHED AGREEMENT WITH GE CAPITAL HE SAID THAT THE LEAST DESIRABLE ASSETS WOULD NOT BE INCLUDED IN THE GE TRANSACTION FIRST CHICAGO WOULD BE THE SECOND BANK THIS YEAR TO UNLOAD SUCH A LARGE PORTFOLIO IN A SINGLE TRANSACTION LAST MONTH BANKAMERICA CORP SAID IT HAD SOLD FOR ABOUT 1 BILLION REAL ESTATE ASSETS WITH A FACE VALUE OF 17 BILLION TO STANLEY REALTY FUND LP A PARTNERSHIP OF INSTITUTIONAL INVESTORS FORMED BY MORGAN STANLEY & CO NATIONSBANK OF CHARLOTTE NC AND FLEET FINANCIAL GROUP INC OF PROVIDENCE RI ALSO HAVE DISPOSED OF LARGE REALESTATE PORTFOLIOS IN BULK SALES GENERAL ELECTRIC CAPITAL HAS ALREADY INVESTED ABOUT 1 BILLION IN TROUBLED REALESTATE ASSETS ACCORDING TO A COMPANY SPOKESMAN IT IS ONE OF THE NATION'S LARGEST BUYERS OF RESOLUTION TRUST CORP ASSETS 9302050110 930205 BOARD OF CONTRIBUTORS WHAT CLINTON SHOULD SAY BY HERBERT STEIN MEMO TO THE PRESIDENT I SUBMIT SOME THOUGHTS THAT YOU MIGHT INCORPORATE NEAR THE END OF YOUR ECONOMIC MESSAGE I ASSUME THAT YOU WILL ALREADY HAVE DISCUSSED HOW YOU ARE GOING TO SPEED UP THE RECOVERY AND CREATE JOBS HOW YOU ARE GOING TO INCREASE AMERICA'S COMPETITIVENESS AND HOW YOU ARE GOING TO REDUCE THE BUDGET DEFICIT CONTINGENT ON A PLAN FOR HEALTH CARE REFORM THAT THE FIRST LADY WILL COMPLETE BEFORE MAY DAY THEN YOU COULD GO ON TO THE SUBJECT COVERED IN THIS MEMO I RECOGNIZE OF COURSE THAT THE LANGUAGE WOULD HAVE TO BE FIXED UP SO THAT NO ONE WOULD BE OFFENDED NOW I WOULD LIKE TO ADDRESS A FEW WORDS DIRECTLY TO THE AMERICAN MIDDLE CLASS WHICH IS THE MAJORITY OF AMERICANS A PREDECESSOR OF MINE CALLED THEM THE SILENT MAJORITY BUT THEY ARE SILENT NO MORE AND MADE THEIR VOICES HEARD IN THE RECENT ELECTION I UNDERSTAND THAT MANY OF YOU ARE DISSATISFIED AND DISAPPOINTED WITH YOUR ECONOMIC CONDITION AND PROSPECTS IN FACT I SPENT A GOOD DEAL OF TIME DURING THE CAMPAIGN EXPLAINING WHY YOU SHOULD BE DISSATISFIED AND DISAPPOINTED BUT THERE ARE THREE POINTS THAT I MUST MAKE TO YOU FIRST ALTHOUGH YOUR CONDITION MAY BE DISSATISFYING AND DISAPPOINTING IT IS SURELY NOT TERRIBLE WHEN VIEWED IN LIGHT OF EXPERIENCE IN THIS COUNTRY AND ELSEWHERE SECOND ALTHOUGH IMPROVING YOUR CONDITION AND PROSPECTS IS HIGHLY DESIRABLE THERE IS NOT MUCH THAT THE GOVERNMENT CAN DO ABOUT THAT THIRD AND MOST IMPORTANT THERE IS MUCH THAT YOU CAN DO YOURSELF ESPECIALLY FOR THE PROSPECTS OF YOUR CHILDREN IT IS TRUE THAT INCOMES IN THE US HAVE GROWN MUCH LESS RAPIDLY SINCE 1973 THAN THEY DID IN THE PREVIOUS 25 YEARS FOR SOME PEOPLE INCOMES HAVE ACTUALLY DECLINED BUT THIS SLOW GROWTH OR DECLINE HAS BEEN FROM A HIGH LEVEL REAL PERCAPITA AFTERTAX INCOME IS NOW EVEN WITH THIS INCOMPLETE RECOVERY 34 HIGHER THAN IT WAS 20 YEARS AGO THE REAL MEDIAN FAMILY INCOME THE INCOME THAT IS EXCEEDED BY HALF THE FAMILIES IS 10 HIGHER THAN 20 YEARS AGO REAL AVERAGE HOURLY EARNINGS INCLUDING FRINGE BENEFITS OF ALL WORKERS IN THE PRIVATE SECTOR ARE 9 HIGHER THAN 20 YEARS AGO AND 40 HIGHER THAN 30 YEARS AGO SOME OF THIS GAIN IN PERCAPITA AND PERFAMILY INCOME BUT NOT ALL OF IT WAS DUE TO THE INCREASED NUMBER OF WORKERS MAINLY WOMEN RELATIVE TO THE SIZE OF THE POPULATION THIS HAD ITS COSTS BUT ALSO MANY BENEFITS EVERYONE HAS NOT SHARED EQUALLY IN THESE GAINS BUT THEY HAVE BEEN FAIRLY WIDELY DISTRIBUTED ANYONE WHO OBSERVES THE WAY PEOPLE LIVE IN AMERICA TODAY AND REMEMBERS EVEN 30 OR 40 YEARS AGO CAN SEE HOW MUCH BETTER OFF ECONOMICALLY MOST PEOPLE ARE THAN THEY WERE IN FACT IT IS ALMOST CERTAINLY TRUE THAT INDIVIDUAL AMERICANS TODAY HAVE COMMAND OF MORE ECONOMIC RESOURCES THAN INDIVIDUALS OF SIMILAR ABILITY HAVE EVER HAD IN ANY OTHER COUNTRY OR IN ANY OTHER TIME IN THIS COUNTRY EXCEPT FOR A FEW YEARS I DO NOT SAY THESE THINGS TO MAKE YOU CONTENT OR COMPLACENT I SAY THEM ONLY FOR THE SAKE OF REALISM AND TO TELL YOU THAT WE HAVE A SOLID BASE FROM WHICH TO MAKE IMPROVEMENTS WE ARE NOT SO POOR AND ENFEEBLED AS TO BE UNABLE TO DO WHAT WILL MAKE US BETTER OFF WHAT IS REQUIRED TO BECOME BETTER OFF IS TO BECOME MORE PRODUCTIVE WE CANNOT HAVE INCOMES THAT WE DO NOT PRODUCE THAT IS TRUE FOR THE NATION AS A WHOLE OBVIOUSLY IT IS ALSO TRUE FOR MOST INDIVIDUALS AND MOST INDIVIDUALS WOULD NOT WANT IT OTHERWISE THE POLICIES I HAVE PROPOSED ARE MAINLY AIMED AT MAKING AMERICANS MORE PRODUCTIVE IN GENERAL THEY ARE POLICIES TO INCREASE INVESTMENT THEY WOULD INCREASE PRIVATE INVESTMENT BY REDUCING THE BUDGET DEFICIT THAT SUCKS UP SAVINGS THAT SHOULD BE INVESTED AND THEY WOULD INCREASE PUBLIC INVESTMENT IN EDUCATION AND TRAINING IN INFRASTRUCTURE AND IN RESEARCH BUT THE GOVERNMENT CANNOT GIVE THE AMERICAN MIDDLE CLASS THIS INVESTMENT THE GOVERNMENT HAS NO MONEY WITH WHICH TO REDUCE THE DEFICIT OR PAY FOR PUBLIC INVESTMENT EXCEPT FOR THE MONEY IT TAKES FROM PRIVATE CITIZENS IN TAXES OR REFRAINS FROM GIVING THEM IN BENEFITS THIS MONEY FOR INVESTMENT HAS TO COME FROM THE PEOPLE PART OF IT CAN COME FROM WEALTHY PEOPLE AND I HAVE PROPOSED SOME TAX INCREASES TO ACCOMPLISH THAT BUT THE AMOUNT THAT CAN COME FROM THAT SOURCE WITHOUT ADVERSE ECONOMIC EFFECTS ON THE MIDDLE CLASS IS LIMITED MOST OF THE MONEY HAS TO COME FROM THE MIDDLE CLASS SIMPLY BECAUSE IT MAKES UP ALMOST ALL OF AMERICA IN EFFECT OUR POLICY CONSISTS OF FORCING THE MIDDLE CLASS TO RESTRAIN ITS CONSUMPTION BY INCREASING ITS TAXES AND CUTTING ITS GOVERNMENT BENEFITS IN ORDER TO GET MONEY TO INVEST TO INCREASE THE PRODUCTIVITY OF THE MIDDLE CLASS BUT THIS IS NOT A VERY SATISFACTORY PROCESS AND NEEDS TO BE LIMITED IT IS HARD TO RAISE TAXES VERY FAR WITHOUT IMPAIRING INCENTIVES TO WORK IT IS HARD TO CUT BENEFITS ON A LARGE SCALE WITH ENOUGH SELECTIVITY TO AVOID HURTING PEOPLE WHO REALLY NEED HELP AND MOST IMPORTANT GOVERNMENT MEASURES CAN DO LITTLE TO PROMOTE THE MOST VALUABLE KIND OF INVESTMENT OF ALL WHICH IS THE INVESTMENT OF PRIVATE INDIVIDUALS IN THEIR OWN EDUCATION AND TRAINING AND THE EDUCATION TRAINING AND GUIDANCE OF THEIR CHILDREN THAT BRINGS ME TO WHAT THE AMERICAN MIDDLE CLASS CAN DO TO HELP ITSELF AND ITS CHILDREN THE RECIPE IS THE ONE THAT OVER THE YEARS HAS CONTRIBUTED GREATLY TO THE HIGH LEVEL OF INCOME WE NOW ENJOY THE RECIPE IS TO SAVE AND STUDY AND TO TRAIN OUR CHILDREN TO WORK TO STUDY AND TO SAVE THE REWARDS TO SAVING AND STUDYING IN AMERICA ARE GREAT BUT THE FACT IS THAT AMERICANS DO NOT SAVE VERY MUCH ESPECIALLY IF AMERICANS ARE AS MUCH CONCERNED AS THEY NOW SEEM TO BE ABOUT THE PROSPECT THAT THEIR CHILDREN WILL HAVE LESS INCOME THAN THEY HAVE PEOPLE WHO ARE WELL EDUCATED AND TRAINED HAVE ENORMOUSLY BETTER OPPORTUNITIES FOR EARNING INCOME THAN THOSE WHO ARE NOT EVEN ADULTS ARE NOT TAKING ADVANTAGE OF TRAINING OPPORTUNITIES THAT IN AN EARLIER TIME WOULD HAVE BEEN SEIZED NOTE TO WJC IF YOU WANT A HUMAN INTEREST STORY AS PRESIDENTS OFTEN DO I OFFER YOU THE CASE OF MY FATHER WHO DID NOT GO BEYOND THIRD GRADE AS A BOY BUT WHO WHEN ALMOST 40 STUDIED TRIGONOMETRY IN NIGHT SCHOOL SO THAT HE MIGHT RISE FROM THE ASSEMBLY LINE AT FORD MOTOR CO TO BECOME A TOOLMAKER THE MAIN OPPORTUNITY IS WITH OUR CHILDREN THE INCOMES OF THE NEXT GENERATION WILL DEPEND HEAVILY ON THE EDUCATION OF OUR CHILDREN OUR SCHOOLS NEED TO BE IMPROVED AND I AM DEVOTED TO THAT BUT WE SHOULD ALSO RECOGNIZE THAT ALMOST EVERYWHERE IN AMERICA RIGHT NOW CHILDREN WHO COME TO SCHOOL PREPARED AND EAGER TO LEARN WHOSE PARENTS HAVE READ TO THEM AND WITH THEM AND WHO SHOW CONTINUING INTEREST IN THEIR SCHOOL WORK CAN GET A GOOD EDUCATION CREATING THESE CONDITIONS IS THE MOST IMPORTANT THING THAT MIDDLECLASS AMERICANS CAN DO TO IMPROVE THE ECONOMIC PROSPECTS OF THEIR FAMILIES AND IT IS SOMETHING THE GOVERNMENT CANNOT DO FOR THEM ONE OF THE MAIN BURDENS THAT OPPRESS MIDDLECLASS AMERICANS AND OTHER AMERICANS AS WELL IS THE HIGH AND RISING COSTS OF HEALTH CARE AS I HAVE INDICATED DEALING WITH THIS PROBLEM IS ONE OF MY ADMINISTRATION'S HIGHEST PRIORITIES BUT I WANT TO POINT OUT THAT HERE TOO THERE IS MUCH THAT ORDINARY AMERICANS CAN DO TO REDUCE THIS BURDEN THE PRESCRIPTION IS WELLKNOWN DON'T SMOKE DRINK OR USE DRUGS EAT PRUDENTLY AND EXERCISE FINALLY I HAVE TO INVOKE A WORD THAT PRESIDENTS RARELY USE EXCEPT WHEN THEY ARE QUOTING THE DECLARATION OF INDEPENDENCE THE WORD IS HAPPINESS THE EFFORT OF THE GOVERNMENT AND OF PRIVATE INDIVIDUALS TO ACHIEVE MORE RAPID ECONOMIC GROWTH AND HIGHER INCOMES IS PART OF THE PURSUIT OF HAPPINESS BUT ONLY PART OF IT THE HAPPINESS OF THE AMERICAN PEOPLE DEPENDS ON MANY OTHER THINGS BESIDES ECONOMIC ACHIEVEMENT WE HAVE HERE GREAT OPPORTUNITIES TO MAKE OUR LIVES HAPPIER WE HAVE ACCESS TO THE GREAT MUSIC OF THE WORLD THROUGH A TURN OF A RADIO DIAL WE HAVE ACCESS TO THE GREAT LITERATURE OF THE WORLD THROUGH FREE LIBRARIES AND TO GREAT ART THROUGH FREE MUSEUMS ABOVE ALL WE HAVE ACCESS TO THE LOVE OF OUR FAMILIES AND FRIENDS IN APPRAISING OUR LIVES AND OUR OPPORTUNITIES WE SHOULD NOT NEGLECT THESE BASIC TRUTHS NOTE TO WJC I KNOW THAT THIS LAST PARAGRAPH SOUNDS CORNY AND MANY PRESIDENTS WOULD BE EMBARRASSED TO SAY IT BUT IT IS TRUE AND MAY SOUND MORE NATURAL COMING FROM YOU THAN FROM MOST OTHER POLITICIANS A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9302050109 930205 DIVIDEND NEWS VORNADO INC VORNADO INC SADDLE BROOK NJ ISSUED ADDITIONAL DETAILS OF ITS PLAN TO CONVERT INTO A REAL ESTATE INVESTMENT TRUST FROM A REAL ESTATE LEASING FIRM THE COMPANY SAID IT WILL DECLARE A DIVIDEND OF 54 MILLION OR ABOUT 5 A SHARE FOLLOWING THE APPROVAL OF CONVERSION BY SHAREHOLDERS HOLDERS OF RECORD MARCH 12 ARE TO VOTE AT A MEETING SET FOR APRIL 12 AS EXPECTED THE COMPANY SAID IT PURCHASED 500000 OF ITS SHARES AT 4075 EACH FROM STEVEN ROTH VORNADO'S CHAIRMAN 9302050108 930205 BUSINESS BRIEF MATTEL'S FOURTHQUARTER NET ROSE 20 SMALLERTHANEXPECTED RISE SINKS STOCK MATTEL INC'S FOURTHQUARTER NET INCOME ROSE 20 TO 357 MILLION OR 35 CENTS A SHARE BUT THE TOY MAKER'S STOCK TUMBLED AS THE EARNINGS FELL SHORT OF ANALYSTS' EXPECTATIONS MATTEL'S SHARES WERE QUOTED AT 24 IN LATE NEW YORK STOCK EXCHANGE TRADING OFF 450 IN HEAVY VOLUME OF 4520000 SHARES WALL STREET ANALYSTS HAD BEEN EXPECTING NET INCOME OF ABOUT 43 CENTS A SHARE A YEAR EARLIER MATTEL REPORTED NET OF 296 MILLION OR 29 CENTS A SHARE SALES FELL ABOUT 2 TO 511 MILLION FROM 521 MILLION WHICH THE COMPANY ATTRIBUTED TO A 50 MILLION REDUCTION IN NINTENDO VIDEO GAME SALES STEMMING FROM MATTEL'S PREVIOUSLY ANNOUNCED DECISION TO STOP DISTRIBUTING NINTENDO PRODUCTS IN ITALY AND CANADA FOURTHQUARTER TOY SALES EXCLUDING NINTENDO PRODUCTS ROSE 8 AN INCREASE THAT WAS RELATIVELY HEALTHY BY TOY INDUSTRY STANDARDS BUT SOMEWHAT LOWER THAN MANY ANALYSTS HAD EXPECTED FOR MATTEL WHICH IS BASED IN EL SEGUNDO CALIF ANALYSTS SAID THAT MATTEL'S QUARTERLY RESULTS REFLECTED SOME INDUSTRYWIDE PRESSURES HEADING INTO THE HOLIDAY SELLING SEASON IN THE EARLY FALL SEASON THERE WAS A LOT OF TALK ABOUT CANCELLATION OF ORDERS AND NO ONE WAS IMMUNE SAID THOMAS KULLY A TOY INDUSTRY ANALYST WITH WILLIAM BLAIR & CO SEPARATELY EAST AURORA NY TOY MAKER FISHERPRICE REPORTED FOURTHQUARTER NET OF 149 MILLION OR 47 CENTS A SHARE COMPARED WITH A RESTATED 63 MILLION OR 20 CENTS A SHARE FOR THE YEAREARLIER PERIOD HOWEVER THE 1991 QUARTER INCLUDED A 23 MILLION GAIN FROM ACCOUNTING CHANGES QUARTERLY SALES ROSE 12 TO 2076 MILLION FROM 185 MILLION FOR ALL OF 1992 FISHERPRICE NET ROSE TO 413 MILLION OR 130 A SHARE COMPARED WITH A YEAREARLIER 173 MILLION A PERSHARE FIGURE WASN'T GIVEN FOR THE PRIOR YEAR BECAUSE ITS SPINOFF FROM QUAKER OATS WASN'T COMPLETED UNTIL DEC 29 1991 REVENUE ROSE 84 TO 694 MILLION FROM 640 MILLION LED BY ROBUST SALES OF INFANT AND PRESCHOOL TOYS INCLUDING DIONROARRRRRS TOURNAMENT TABLE ACTION WORKSHOP FLIP TRACK RAIL AND ROAD BABY BASKETBALL AND ACTIVITY LINKS GYM THE TURNAROUND AT FISHERPRICE FOLLOWS A STORMY PERIOD PRIOR TO THE SPINOFF FROM QUAKER OATS FISHERPRICE LOST ABOUT 70 MILLION ON HIGHTECH TOYS FOR OLDER CHILDREN THAT FLOPPED SINCE THEN THE COMPANY HAS CLOSED THREE PLANTS AND LAID OFF HUNDREDS OF WORKERS MATTEL REPORTED FULLYEAR NET OF 144 MILLION OR 143 A SHARE A 23 INCREASE FROM 1172 MILLION OR 115 A SHARE IN 1991 THE EARNINGS INCLUDED A CHARGE OF 10 CENTS A SHARE FOR RECEIVABLES RELATED TO TWO ACCOUNTS CHILD WORLD AND LIONEL LEISURE NET SALES ROSE 12 TO 185 BILLION FROM 165 BILLION A YEAR EARLIER EXCLUDING NINTENDO TOY SALES ROSE 19 FOR THE YEAR 9302050107 930205 INTERNATIONAL MEXICO DEFENDS REJECTING BIDS ON AIRPORT JOBS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY IN A WIDENING DISPUTE MEXICO'S SECRETARIAT OF THE COMPTROLLER SAID SEVERAL MULTINATIONAL COMPANIES DEVIATED FROM ESTABLISHED PROCEDURES IN CONTRACT BIDS FOR MEXICAN AIRPORT IMPROVEMENTS IN ADDITION TO FOUR US COMPANIES GERMANY'S SIEMENS AG AND JAPAN'S NISSHOIWAI CORP ALSO FILED FORMAL PROTEST PETITIONS WITH THE COMPTROLLER OVER ALLEGED BIDDING IRREGULARITIES THE CANADIAN AND US GOVERNMENTS HAVE WRITTEN LETTERS ON BEHALF OF THE FOUR US COMPANIES AND A CANADIAN SUBSIDIARY OF ONE OF THEM THE DISPUTE FOCUSES ON CONTRACTS VALUED AT 21 MILLION TO REVAMP RADAR AND AIRTRAFFIC CONTROL SYSTEMS AT VARIOUS AGING AND OVERTAXED MEXICAN AIRPORTS BIDDERS WERE JUDGED ON TECHNOLOGY AND PRICE MOST OF THE US COMPANIES CONTEND THEIR TECHNOLOGY WAS SUPERIOR TO THE WINNING BIDS BUT THE COMPTROLLER'S OFFICE RESPONDED THAT THE PROTESTING COMPANIES HAD DEVIATIONS IN ESTABLISHED REQUIREMENTS FOR THE BIDDING THOUGH IT ADDED THAT ITS COMMENTS ARE IN NO WAY INTENDED TO CAST DOUBT ON THE QUALITY OF THEIR TECHNOLOGY AS THE COMPANIES PROTESTED WHAT THEY VIEWED AS A LACK OF IMPARTIALITY IN THE DECISION MEXICAN AUTHORITIES ALSO NOTED THAT A CANADIAN UNIT OF MARTIN MARIETTA CORP OF BETHESDA MD WAS INVOLVED IN THE TECHNICAL EVALUATION YESTERDAY SEVERAL COMPANIES REQUESTED A COPY OF THE MARTIN MARIETTA REPORT IN A MEETING WITH MORE THAN A DOZEN MEXICAN OFFICIALS CANADIAN TRADE MINISTER MICHAEL WILSON FORMALLY COMPLAINED ABOUT THE BIDDING PROCESS TO THE HEAD OF THE SECRETARIAT OF COMMUNICATIONS AND TRANSPORTATION THE MINISTRY IN CHARGE OF THE AIRPORTS CONTRACT THE LETTER ASKED THAT PROPER RULES BE RESPECTED IN BIDDING CONTRACTS THE US HAS TAKEN A LESS AGGRESSIVE STANCE SENDING A LETTER OF COMPLAINT THROUGH A US EMBASSY COMMERCE COUNSELOR RATHER THAN A FORMAL DIPLOMATIC NOTE OTHER LOSING BIDDERS WERE INTERNATIONAL BUSINESS MACHINES CORP OF ARMONK NY THE CANADIAN SUBSIDIARY OF RAYTHEON CO OF LEXINGTON MASS AND CLOSELY HELD CALMAQUIP ENGINEERING CORP OF MIAMI WORKING WITH A UNIT OF WESTINGHOUSE ELECTRIC CORP OF PITTSBURGH THE WINNERS WERE THOMPSON SA OF FRANCE AND ALENIA SPA A UNIT OF ITALY'S FINMECCANICA SPA MEANWHILE THE COMPTROLLER'S OFFICE SAID IT IS INVESTIGATING A REPORT IN THE FINANCIAL TIMES OF LONDON THAT MEXICAN OFFICIALS SOUGHT A 1 MILLION BRIBE FROM AN AGENT FOR IBM BUT AN EXECUTIVE AT ONE OF THE LOSING BIDDERS PLAYED DOWN THE BRIBE ALLEGATION THE EXECUTIVE WHO ASKED FOR ANONYMITY SAID THAT KIND OF THING HAPPENS ALL THE TIME AND YOU IGNORE IT THE ISSUE HERE IS OUR US TECHNOLOGY 9302050106 930205 HOLLINGER PLANS TO SELL HALF OF SOUTHAM STAKE TO BRITAIN'S TELEGRAPH TORONTO HOLLINGER INC SAID IT PLANS TO SELL HALF OF ITS RECENTLY ACQUIRED 225 STAKE IN SOUTHAM INC TO TELEGRAPH PLC OF BRITAIN AND USE THE PROCEEDS TO PAY OFF PART OF THE DEBT IT INCURRED BUYING THE SOUTHAM STAKE TELEGRAPH WHICH PUBLISHES THE DAILY TELEGRAPH IN LONDON IS 68OWNED BY HOLLINGER UNDER THE PROPOSAL HOLLINGER AND TELEGRAPH WOULD EACH OWN 50 OF A NEW HOLDING COMPANY WHICH IN TURN WOULD HOLD THE SOUTHAM STAKE TELEGRAPH WOULD PAY HOLLINGER 1295 MILLION CANADIAN DOLLARS US1022 MILLION OR HALF OF THE C259 MILLION HOLLINGER PAID WHEN IT BOUGHT THE SOUTHAM STAKE FROM TORSTAR CORP EARLIER THIS YEAR A SPOKESMAN FOR HOLLINGER A TORONTO PUBLISHING CONCERN SAID THE PROCEEDS WOULD BE APPLIED TO ITS C189 MILLION OF DEBT OWED TO TORSTAR FROM THE SOUTHAM PURCHASE HE SAID THAT THE COMPANY HAS SUFFICIENT BANK CREDIT LINES TO PAY OFF THE BALANCE OF THE DEBT WHICH MATURES APRIL 15 AND THAT CONTRARY TO RUMORS IT WON'T HAVE TO ISSUE ANY SHARES TO FINANCE THE DEBT REPAYMENT SOUTHAM AND TORSTAR ARE BOTH PUBLISHING CONCERNS BASED IN TORONTO HOLLINGER ALSO SAID THAT TELEGRAPH SOLD ITS 14 STAKE IN NEWSPAPER PUBLISHING COMPANY TRINITY INTERNATIONAL HOLDINGS PLC TO BROKERAGE CONCERN GOLDMAN SACHS & CO FOR 268 MILLION US385 MILLION IN CASH IT SAID THAT AS A RESULT OF THE SALE HOLLINGER WILL REALIZE AN AFTERTAX GAIN IN THE FIRST QUARTER OF ABOUT C128 MILLION OR ABOUT 23 CANADIAN CENTS A SHARE 9302050105 930205 POTOMAC WATCH AL TO BILL A FEW TIPS ON THE RECOVERY BY PAUL A GIGOT AN IRON LAW OF WASHINGTON IS THAT IF YOU BUILD IT THEY WILL COME AND STAY FOREVER WHICH IS WHY AMERICAN TAXPAYERS AND ESPECIALLY PRESIDENT CLINTON SHOULD THANK ALBERT CASEY FOR 15 MONTHS MR CASEY HAS BEEN PRESIDENT AND CHIEF EXECUTIVE OF THE RESOLUTION TRUST CORP RTC THE FEDERAL SALVAGE YARD FOR SAVINGS AND LOANS HIS MISSION IMPLAUSIBLE HAS BEEN TO MANAGE THE BIGGEST SALE SOME 323 BILLION SO FAR OF REAL ESTATE AND FINANCIAL ASSETS FROM PUBLIC TO PRIVATE HANDS SINCE WEST GERMANY SWALLOWED THE EAST HE'S ONE OF THOSE WASHINGTONIANS WHOSE OBSCURITY IS A VIRTUE BECAUSE IT REPRESENTS A DEBACLE AVERTED MR CASEY HAS DONE THIS TASK WELL ENOUGH WHICH IS TO SAY FAST ENOUGH THAT HE MAY WORK HIMSELF AND AS MANY AS 6700 COWORKERS OUT OF JOBS BY THE END OF THIS YEAR IN THE PROCESS HE HAS HELPED TO LIFT THE US ECONOMY FROM RECESSION AND HE HAS GIVEN MR CLINTON A LESSON IN HOW TO REINVENT GOVERNMENT THE OLDFASHIONED WAY BY DOING AWAY WITH IT MY PROPOSAL IS TO PUT THIS AGENCY OUT OF BUSINESS BY DEC 31 AVERRED THE FEISTY OFTEN PROFANE FORMER AIRLINE EXECUTIVE IN AN INTERVIEW THIS WEEK THAT'LL BE THREE YEARS AHEAD OF PLAN HE MADE HIS PITCH THIS WEEK TO THE CLINTON TREASURY WHICH DOESN'T YET SEEM TO APPRECIATE THE RTC'S CONTRIBUTION TO ITS OWN ECONOMIC FORTUNES NO LESS AN ORACLE THAN ALAN GREENSPAN THE FEDERAL RESERVE CHAIRMAN HAS CITED THE RTC FOR HELPING TO LIQUEFY US REALESTATE MARKETS THAT'S FEDSPEAK FOR SELLING ASSETS THAT OVERHANG LOCAL REALESTATE MARKETS LIKE A THREAT ONCE THE THREAT LIFTS SO DOES UNCERTAINTY PRIVATE INVESTORS AND LENDERS ARE THEN MORE WILLING TO PUT THEIR OWN MONEY AT RISK THIS HAS EASED THE NOTORIOUS CREDIT CRUNCH THAT MR CLINTON HAS HIMSELF ASSAILED ECONOMIST JOHN RUTLEDGE SAYS THE RTC WAS THE ELEPHANT IN THE BATH TUB DURING THE RECENT RECESSION IT EXACERBATED THE PLUNGE IN HOUSING PRICES THAT MADE MILLIONS OF AMERICANS FEEL POORER THUS CAUSING THEM TO SPEND AND INVEST LESS THE RTC'S GOINGOUTOFBUSINESS SALE AMOUNTS TO A STEP OUT OF THE TUB HELPING TO REVERSE THAT HOUSING DEFLATION THEY GET A NINE OUT OF 10 IN THE WAY THEY'VE PULLED IT OFF ESPECIALLY IN THE LAST YEAR SAYS MR RUTLEDGE SINCE THE WHITE HOUSE AND CONGRESS HAVE SO FAR EARNED A ZERO OUT OF 10 ON ECONOMIC POLICY MAYBE WE SHOULD CALL THIS THE CASEY RECOVERY OF COURSE THIS SUCCESS HAS ATTRACTED POLITICAL PREDATORS SEN DONALD RIEGLE D MICH MAY HOLD HEARINGS SOON TO SCREAM THAT SOMEONE SOMEWHERE MADE A PROFIT FROM THE RTC MR RIEGLE WHO WAS CHARLIE KEATING'S PAL IS TO S&L PROPRIETY WHAT MADONNA IS TO CHASTITY THERE WILL BE VERY GOOD DEALS REPLIES MR CASEY WHO IS SOMETIMES CALLED THE TERMINATOR AND SOME INVESTORS WILL GET RICH REWARDS BUT AS FAR AS I'M CONCERNED THEY'RE THE ONES WHO CHARGED OUT AND DID IT TOOK THE RISK BEFORE THE MARKET TURNED IN SOME CITIES NO ONE HAS HAD A CLUE ABOUT A PERFECT SALES PRICE HE ADDS BECAUSE THERE WAS NO MARKET IN ANY CASE THE ATTRACTION OF A PROFIT HELPS LURE MORE INVESTORS AND THUS BIDS UP RTC PRICES YIELDING EVEN MORE FOR TAXPAYERS SUCH CAPITALIST NUANCES ELUDE SOME OF WASHINGTON'S DIMMER BULBS SUCH AS MINNESOTA REP BRUCE VENTO THEY WANT TO FIRE MR CASEY IMMEDIATELY BUT KEEP THE RTC AROUND FOREVER AS A FEDERAL LIQUIDATOR THAT'S GONNA BE HOLY HELL SAYS MR CASEY WHO AT 72 YEARS OLD HAS NOTHING TO LOSE FROM CANDOR THE FEDS ALREADY HAVE A LIQUIDATOR THE GENERAL SERVICES ADMINISTRATION IF THE RTC ALSO GETS INTO THE ACT MR CASEY SAYS THAT MEANS WE ARE GOING TO KEEP A WHOLE BUREAUCRACY HERE PERSONNEL LAW GOVERNMENT RELATIONS EVEN PUBLIC RELATIONS WE DON'T NEED ALL THAT THE CASEY RECORD AS GOOD AS IT IS HAS A FEW SMIRCHES THAT EVEN HE'LL ACKNOWLEDGE WE'RE UP TO 81000 LAWSUITS I THINK THAT'S OBSCENE HE SAYS ACCURATELY DESCRIBING THE RTC'S LEGAL MAYHEM THESE SUITS ARE SUPPOSED TO EXACT REVENGE FROM S&L OFFENDERS BUT MANY ALSO TERRORIZE INNOCENTS AND MAKE IT HARDER TO ATTRACT NEW MARKET PLAYERS OF COURSE IF MR CASEY EVER ASKED HIS LAWYERS TO EASE UP THE VENTOS AND RIEGLES WOULD ONLY RAISE MORE UNHOLY HELL SIMILAR CONGRESSIONAL SPITE HAS ALREADY SLOWED DOWN RTC SALES BY BLOCKING THE 25 BILLION MORE THAT THE RTC NEEDS TO FINISH ITS JOB THAT MONEY WOULD RUN THE TOTAL COST OF THE S&L BAILOUT TO SOME 110 BILLION EXCLUDING INTEREST AS NAUSEATING AS THAT IS IT'S LOWER THAN THE 160 BILLION ONCE PREDICTED AND LOWER THAN IT WILL BE IF CONGRESS STALLS SOME MORE THE CLINTON ADMINISTRATION SAYS IT WANTS TO REFORM GOVERNMENT SO LETTING THE RTC GO OUT OF BUSINESS WOULD SEEM A NATURAL THE DANGER IS THAT IT WILL LOSE ITS NERVE AMID THE CONGRESSIONAL GRANDSTANDING ROGER ALTMAN THE DEPUTY TREASURY SECRETARY SAYS THE MATTER IS BEING STUDIED BUT DOES ADD THE HOPEFUL OBSERVATION THAT I PERSONALLY THINK THE IDEA OF LESS GOVERNMENT AND FEWER APPENDAGES IS BETTER THAN MORE GOVERNMENT THAT'S ONE GOOD WAY TO LOOK AT IT ANOTHER IS THIS IF THE CLINTON TEAM IS GOING TO RAISE AS MANY TAXES AND IMPOSE AS MANY MANDATES AS THEY'RE NOW ADVERTISING THEY ARE GOING TO NEED AL CASEY'S WISDOM A LOT MORE THAN HE'LL NEED THEIRS 9302050104 930205 EUROPE'S RECOVERY TO SPRING FROM US GLOBAL GROUP SAYS RECESSION HAS OVERWHELMED HOPE FOR SINGLE MARKET IN '92 BY PHILIP REVZIN STAFF REPORTER OF THE WALL STREET JOURNAL DAVOS SWITZERLAND THE ELUSIVE ECONOMIC UPTURN IN EUROPE MAY NOT APPEAR THIS YEAR OR EVEN IN 1994 ACCORDING TO A NUMBER OF INFLUENTIAL BUSINESSMEN ASSEMBLED BY THE WALL STREET JOURNAL EUROPE AND HANDELSBLATT A GERMAN FINANCIAL NEWSPAPER FOR A DISCUSSION AT THE WORLD ECONOMIC FORUM HERE BUT THE CONSENSUS OF THE GROUP WAS THAT RECOVERY WILL TAKE ROOT IN THE US AND CONTINUE IN ASIA AND THAT OPPORTUNITIES FOR GROWTH AND INVESTMENT WILL BE STRONGEST IN EASTERN EUROPE AND IN THOSE WESTERN EUROPEAN COUNTRIES WITH LOWER MANUFACTURING COSTS PARTICIPATING IN THE DISCUSSION WERE WINFRIED BISCHOFF CHAIRMAN OF INVESTMENT BANK J HENRY SCHRODER WAGG IN THE UK JOSEPH CAPPY VICE PRESIDENT INTERNATIONAL OPERATIONS FOR CHRYSLER CORP OF THE US HUBERTUS VON GRUENBERG CHAIRMAN OF THE EXECUTIVE BOARD OF GERMANY'S CONTINENTAL AG AND EBERHARD VON KOERBER EXECUTIVE VICE PRESIDENT OF ABB ASEA BROWN BOVERI LTD THE MULTINATIONAL CAPITALGOODS COMPANY BASED IN SWITZERLAND PARTICIPANTS ALL AGREED THAT IN EUROPE AT LEAST THE HOPEDFOR MACROECONOMIC IMPETUS OF THE 1992 SINGLE MARKET HAS BEEN OVERWHELMED BY THE RECESSION A YEAR AGO WE THOUGHT 1992 WOULD BE THE YEAR WHEN ECONOMIES TURNED AROUND SAID MR BISCHOFF OF J HENRY SCHRODER WAGG THAT HASN'T HAPPENED IN EUROPE THE PROBLEM HAS BEEN VERY MUCH MORE THAT OF STAGNATION OF UNSETTLED CURRENCY MARKETS AND REALLY QUITE A LOT OF TURMOIL I THINK 1993 IS GOING TO BE QUITE A DIFFICULT YEAR ANY IMPETUS FOR ECONOMIC GROWTH ISN'T GOING TO COME FROM EUROPE IT'S GOING TO COME FROM THE US PERHAPS OR THE FAR EAST MR VON GRUENBERG ADDED THAT WHILE 1993 WILL BE DIFFICULT IN EUROPE FOR CONTINENTAL WHICH MAKES TIRES AND OTHER PRODUCTS THANK GOD WE'RE GLOBAL AND THANK GOD WE'VE GOT BIG INTERESTS IN THE US WHERE WE ARE BENEFITING FROM THE EXPANSION EVERYBODY IN EUROPE NOW WANTS A BIG US SUBSIDIARY WITHOUT DOUBT THE US WILL RECOVER BEFORE EUROPE FOR EUROPE TO RECOVER MORE QUICKLY ACCORDING TO ABB'S MR VON KOERBER GOVERNMENTS MUST BETTER COORDINATE ECONOMIC POLICIES GOVERNMENTS ARE ALL PLAYING THEIR OWN GAMES THERE MAY BE SOME COORDINATED EUROPEAN STIMULUS BUT NOT IN THE SHORT TERM THE US RECOVERY'S EFFECT ON EUROPE DEPENDS ON HOW QUICKLY THE CLINTON ADMINISTRATION STIMULATES THE US ECONOMY AND WHETHER THAT INCREASE IN INFRASTRUCTURE SPENDING CREATES ADDITIONAL DEMAND FOR EXPORTS FROM EUROPE BUT HE ADDED THAT HIS COMPANY AT LEAST SEES GROWTH FOR THE FIRST TIME IN THE CZECH REPUBLIC AND POLAND AND THERE LOOKS TO BE A REAL FURTHER EXPANSION THERE THE MOVEMENT OF MANUFACTURING TO THE SOUTH AND EAST WILL LIKELY CONTINUE MR BISCHOFF POINTED OUT THAT WITH THE NEW FREER MOVEMENT OF GOODS AND PEOPLE WITHIN EUROPE THOSE EUROPEAN BUSINESSES THAT HAVE SITED SOME PRODUCTION ABROAD ARE DOING VERY WELL THOSE THAT RELY ON PRODUCTION IN THE NORTHERN COUNTRIES HAVE GOT A PROBLEM MR VON GRUENBERG CITED HIS COMPANY'S ESTABLISHMENT OF A MAJOR TIRE OPERATION IN PORTUGAL AND THE PURCHASE OF THE CZECH REPUBLIC'S BIGGEST TIRE MAKER IN GERMANY HE ADDED CONTINENTAL HAS BEEN RETRAINING ITS EMPLOYEES TO MAKE HIGHERTECHNOLOGY PRODUCTS LEAVING SIMPLE TIREMAKING TO LOWERCOST UNITS ADDED MR VON GRUENBERG THERE IS A SENTIMENT OF EMERGENCY ABOUT JOB LOSSES IN SOME COUNTRIES BUT THE PUBLIC SHOULDN'T PANIC THE UPSIDE IS THAT DURING AN EMERGENCY A LOT CAN AND WILL BE DONE TO RESTRUCTURE WE'LL COME OUT OF THIS CYCLE WITH SOME SCARS BUT STRONGER EUROPE'S RECESSION AND THE EC'S SINGLEMARKET PROGRAM MAY FINALLY HELP IT CLOSE THE PRODUCTIVITY GAP WITH THE US AND ASIA THIS WAS THE GOAL OF THE SINGLE MARKET SAID MR VON KOERBER TO MAKE EUROPE MORE COMPETITIVE BY BECOMING MORE PRODUCTIVE TO FORCE MORE INTERNAL COMPETITION OF COURSE ANNOUNCEMENTS LIKE THE 10000 LAYOFFS AT VOLKSWAGEN WILL HAVE AN ADVERSE EFFECT ON PUBLIC OPINION BUT WHAT'S HAPPENING WILL INCREASE PROFIT EXPECTATIONS FOR THESE COMPANIES AFTER ONE OR TWO YEARS WE'LL COME OUT HEALTHIER AND MORE COMPETITIVE MOST OF THE BUSINESSMEN AT DAVOS SAID THEIR COMPANIES STARTED PREPARING FOR 1992 AND EUROPE'S RECESSION YEARS AGO MR VON GRUENBERG ADDED THAT AT CONTINENTAL AS AT MANY OTHER GERMAN COMPANIES ALL LEVELS OF MANAGEMENT ARE LOOKING OUTSIDE NOW BUYING COMPONENTS FROM NEIGHBORS NOT JUST IN GERMANY BUSINESS HABITS HAVE GROWN TOTALLY INTERNATIONAL ABB SAID MR VON KOERBER ANTICIPATED EUROPE'S DOWNTURN AND HAS BEEN LAYING OFF WORKERS THERE AT A RATE OF 1000 A MONTH FOR THE PAST TWO YEARS AT THE SAME TIME THE COMPANY HAS BUILT UP CAPACITY IN POLAND ROMANIA AND THE CZECH REPUBLIC NOW EMPLOYING 20000 IN EASTERN EUROPE THE BUSINESSMEN AGREED THAT CONTINUED MOVEMENT OF COMPANIES AND GOODS RAISES DANGERS OF POSSIBLE PROTECTIONISM BUT THEY DON'T THINK RECENT CLINTON ADMINISTRATION MOVES ON STEEL DUTIES PORTEND A TRADE WAR THE EUROPEAN PARTICIPANTS CALLED ON THE EC TO COMPLETE THE URUGUAY ROUND OF TRADE TALKS BY MAKING CONCESSIONS ON FARM TRADE MR CAPPY POINTED OUT THE RISING PRESSURE IN THE US CONGRESS NOW DEALING WITH A DEMOCRATIC PRESIDENT TO ENFORCE FAIR TRADE RATHER THAN FREE TRADE HE ADDED THAT HE SEES TRADE DIFFERENCES EVERY DAY CHRYSLER WHICH DOESN'T BUILD CARS IN EUROPE MUST PAY A 10 DUTY ON EACH VEHICLE IT IMPORTS TO THE REGION EUROPEAN PRODUCERS PAY ONLY A 2 DUTY TO EXPORT TO THE US TO SMOOTH OUT SUCH DIFFERENCES IN THE FUTURE HE ADDS YOU'RE GOING TO HAVE TO BE IN ALL THE TRADE BLOCS AND IN SEVERAL COUNTRIES IN EACH BLOC GOVERNMENTS JUST AREN'T GOING TO ALLOW ALL THE INTERBLOC TRADE TO BE FREE MR BISCHOFF SAID HE THOUGHT IT WOULD BE VERY VERY DIFFICULT TO ARRIVE AT A COMMON EUROPEAN CURRENCY BY THE END OF THE DECADE A SENTIMENT WIDELY SHARED MOST OF THE PARTICPANTS ALSO SAID THEY DON'T SEE SUCH CURRENCY MAKING MUCH DIFFERENCE TO THEIR BUSINESSES FROM A BUSINESS POINT OF VIEW I HAVE HIGHER PRIORITIES SAID MR VON GRUENBERG IT'S MUCH MORE IMPORTANT TO MAINTAIN FINANCIAL STABILITY AMONG EUROPEAN NATIONS BUT MR VON KOERBER SAID ABB FAVORS A COMMON CURRENCY PRECISELY BECAUSE IT WOULD SERVE AS AN INSTRUMENT TO FORCE THE HARMONIZATION OF ECONOMIC POLICIES HOWEVER HE ADDED THAT HE'S SKEPTICAL THAT CAN HAPPEN DURING THIS DECADE ON INVESTING IN EASTERN EUROPE MR CAPPY SAID AMERICAN COMPANIES HAVEN'T RUSHED IN BECAUSE THEY CAN'T GET HARD CURRENCY BACK OUT IT ONLY MAKES SENSE IF YOU'RE LOOKING FOR LOWERCOST CAPACITY GM NEEDED AN ENGINE PLANT SO IT WENT INTO HUNGARY BUT IF YOU DON'T NEED CAPACITY YOU DON'T GO IN 9302050103 930205 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIAN PRESIDENT BORIS YELTSIN LAMBASTED THE GOVERNMENT FOR FAILING TO QUELL ECONOMIC CHAOS IN AN EFFORT TO SMOOTH THE WAY FOR STRICT NEW POLICIES MR YELTSIN BLAMED MISMANAGEMENT AND LACK OF COORDINATION FOR PROBLEMS IN AREAS RANGING FROM FOREIGN TRADE AND CONVERSION OF MILITARY INDUSTRIES TO DISTRIBUTION OF BILLIONS OF DOLLARS IN GOVERNMENT CREDITS DESPITE THE RUBLE'S PLUMMETING VALUE EXPORTS FELL 12 LAST YEAR TO 45 BILLION WHILE IMPORTS DROPPED 6 TO 42 BILLION ECONOMICS MINISTER ANDREI NECHAYEV CONCEDING STABILIZATION EFFORTS FAILED SAID FEW STRUCTURAL CHANGES WERE ACHIEVED AND CONTROLS ON EXPORTS AND FOREIGNCURRENCY EARNINGS WERE WEAKLY ENFORCED LEADING TO CAPITAL FLIGHT EVEN OFFICIALS WHO FAVOR SUBSIDIES ARE UNNERVED BECAUSE PRICES LAST MONTH VERGED ON HYPERINFLATION UNDER A TIGHTER POLICY THE ECONOMICS AGENCY PLANS TO REVISE SOME TAX TRADE AND OTHER BENEFITS FOR ENTERPRISES OR SECTORS IT WILL SLASH SUBSIDIES TO AGRICULTURE FOOD PRODUCERS COAL MINING AND INEFFICIENT FACTORIES NEW TAX AND TARIFF RULES ARE TO HELP RESTRUCTURE THE ECONOMY INEFFICIENT PRODUCERS WILL BE ALLOWED TO FAIL CONTROLS ON EXPORTERS' FOREIGNCURRENCY REPATRIATION WILL BE ENFORCED TO RESPOND QUICKLY TO ANY OIL SPILLS IN THE STRAIT OF MALACCA THE PETROLEUM ASSOCIATION OF JAPAN SAID IT WAS PREPARING TO ESTABLISH IN JUNE A STORAGE BASE FOR OCEAN OILPOLLUTION EQUIPMENT POSSIBLY IN MALAYSIA THE CONGESTED WATERWAY WAS THE SITE OF AN OIL SPILL FROM ONE OF TWO TANKERS THAT COLLIDED NEAR NORTHERN SUMATRA ON JAN 21 THE JAPANESE OIL GROUP'S GEAR COULD BE HIRED BY TANKER OWNERS TO CLEAN SPILLS THE GROUP ALSO MAY JOIN A COMPANY BEING SET UP BY MULTINATIONAL OIL CORPORATIONS TO HIRE OUT SPILLFIGHTING EQUIPMENT THE CZECH AND SLOVAK FINANCE MINISTERS AGREED ON A SYSTEM FOR CLEARING PAYMENTS BETWEEN THE TWO NEWLY INDEPENDENT STATES AFTER THEIR CURRENCIES BECOME LEGAL TENDER MONDAY PARLIAMENTS OF THE TWO REPUBLICS ARE EXPECTED THIS WEEKEND TO APPROVE THE SYSTEM REQUIRED TO CONTINUE TRADE CREDITS AND PAYMENTS ARE TO BE CLEARED IN THE EUROPEAN CURRENCY UNIT SOME ECONOMISTS EXPECT THE SLOVAK KORUNA TO BE DEVALUED BETWEEN 25 AND 30 AGAINST THE CZECH KORUNA ONCE THE FORMER CZECHOSLOVAK CURRENCY SLOVAKIA SAID IT WASN'T PREPARING A DEVALUATION DENMARK SCHEDULED ITS SECOND REFERENDUM ON THE EUROPEAN COMMUNITY UNITY TREATY FOR MAY 18 DANES LAST JUNE NARROWLY REJECTED THE ACCORD STALLING THE POLITICAL ECONOMIC AND MONETARY INTEGRATION OF THE 12MEMBER TRADE BLOC BUT THIS TIME THE MEASURE EXEMPTS DENMARK FROM OBJECTIONABLE PROVISIONS AN EC SUMMIT IN DECEMBER DECIDED TO LET DENMARK OPT OUT OF SOME TREATY TERMS SUCH AS A COMMON EC CURRENCY CENTRAL BANK AND DEFENSE OPINION POLLS SHOW DANES FAVOR THE REVISED APPROACH ALL OTHER EC MEMBERS EXCEPT BRITAIN HAVE ADOPTED THE TREATY WHICH IS TO BE PHASED IN BY 1999 MOST OF MALAYSIA'S BROADCASTING AGENCY WHICH RUNS TWO TELEVISION STATIONS AND SEVERAL RADIO OUTLETS MAY BE CONVERTED IN SEPTEMBER TO A PRIVATE CORPORATION AND LATER SOLD OFF THE ONLY OTHER TV CHANNEL IN MALAYSIA IS OWNED BY THE RULING POLITICAL PARTY PRIME MINISTER MAHATHIR MOHAMAD WANTS TO PRIVATIZE AS MANY AGENCIES AS POSSIBLE TO CUT GOVERNMENT SPENDING AND PROMOTE FREE ENTERPRISE SALES OF NEW CARS LAST MONTH IN ITALY SLUMPED 14 THE SHARPEST YEARTOYEAR DROP SINCE APRIL 1983 AND THE SIXTH CONSECUTIVE MONTHLY CONTRACTION THE NATIONAL TRADE GROUP FOR AUTO MAKERS ANFIA SAID THE LATEST SLIDE WAS ALL THE MORE STRIKING BECAUSE JANUARY IS TRADITIONALLY THE BIGGEST SALES MONTH OF THE YEAR SALES LAST MONTH DROPPED TO 202209 AUTOS FROM 234746 IN JANUARY 1992 SOUTH KOREA WILL TRY TO BOOST ITS SAGGING ECONOMY BY ALLOCATING 60 OF THIS YEAR'S BUDGET IN THE FIRST HALF SPENDING ON CONSTRUCTION AND OTHER BIG PUBLIC PROJECTS WILL BE LAUNCHED AS QUICKLY AS POSSIBLE THE GOVERNMENT ALSO WILL EASE RESTRICTIONS ON STOCK RIGHTS ISSUES TO MAKE IT EASIER FOR BUSINESS TO RAISE MONEY CHOI GAK KYU ECONOMIC PLANNING BOARD MINISTER PREDICTED THAT ALL THE MEASURES WILL STIMULATE THE ECONOMY TO GROW AS MUCH AS 7 IN THE SECOND HALF LAST YEAR TOUGH MONETARY POLICY SLOWED GROWTH TO ABOUT 45 FROM 84 IN 1991 AND 93 IN 1990 THE GOVERNMENT AIMS TO CURB THIS YEAR'S INFLATION RATE TO BETWEEN 4 AND 5 AND TO KEEP THE NATION'S MONEY SUPPLY FLEXIBLE TO MAINTAIN TRADE HARMONY WITH THE US MR CHOI SAID THE GOVERNMENT WILL CRACK DOWN ON VIOLATORS OF INTELLECTUAL PROPERTY RIGHTS AND SIMPLIFY THE PROCESS FOR FOREIGN INVESTORS BUSINESS FAILURES IN SOUTH KOREA LAST YEAR SOARED 75 TO A RECORD 10769 FROM A YEAR EARLIER THE CENTRAL BANK SAID MOST TRAFFIC WAS BARRED FROM DOWNTOWN PRAGUE FOR THE FIRST TIME AFTER SMOG CAUSED BY COALBURNING FURNACES AND AUTOS POWERED BY LEADED FUEL EXCEEDED POLLUTION LIMITS IN THE CZECH REPUBLIC'S CAPITAL CHOLESTEROL LEVELS AMONG JAPANESE ADULTS HAVE INCREASED STEEPLY BECAUSE OF A SHIFT TO A WESTERNSTYLE DIET RICH IN ANIMAL FATS COUPLED WITH LACK OF EXERCISE A HEALTH MINISTRY STUDY FOUND 9302050102 930205 JUSTICE DEPARTMENT SHIFTS GEARS ON CABLETV SUITS WASHINGTON THE JUSTICE DEPARTMENT FLIPFLOPPED ON PART OF THE NEW CABLE REREGULATION LAW AND DECIDED TO DEFEND THE GOVERNMENT AGAINST LAWSUITS FILED BY CABLE COMPANIES IN A FLURRY OF SUITS LAST FALL IN FEDERAL COURT HERE CABLE LAWYERS TARGETED A PROVISION THAT WOULD ALLOW LOCAL TV STATIONS FOR THE FIRST TIME TO CHARGE CABLE SYSTEMS THAT CARRY THEIR SIGNAL IT ALSO ALLOWS BROADCASTERS TO FORGO SUCH PAYMENTS FROM CABLE SYSTEMS AND INSTEAD DEMAND THAT CABLE SYSTEMS CARRY THEIR SIGNAL CABLE COMPANIES CLAIM THE SOCALLED MUSTCARRY RULE VIOLATES THE CONSTITUTION'S FREE SPEECH AND DUE PROCESS RIGHTS UNDER PRESIDENT BUSH WHO VETOED THE CABLE BILL BUT WAS OVERRIDDEN BY CONGRESS THE JUSTICE DEPARTMENT REFUSED TO DEFEND THE LAW BUT UNDER THE CLINTON ADMINISTRATION THE DEPARTMENT SWITCHED GEARS AND PLANS TO TAKE ACTION IN THE CASE NEXT WEEK THE DECISION PLEASED CONSUMER GROUPS AND BROADCASTERS IN OUR VIEW A STRONG GOVERNMENT DEFENSE SIGNIFICANTLY ADDS TO THE LIKELIHOOD THAT MUSTCARRY WILL BE UPHELD BY THE COURTS SAID JEFF BAUMANN EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL FOR THE NATIONAL ASSOCIATION OF BROADCASTERS 9302050101 930205 BUSINESS CHIEFS TRY TO DERAIL PROPOSAL ON STOCK OPTIONS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BUSINESS ROUNDTABLE IS TRYING TO DERAIL A MOVE BY THE FINANCIAL ACCOUNTING STANDARDS BOARD TO FORCE COMPANIES TO DEDUCT THE VALUE OF EXECUTIVE STOCK OPTIONS FROM THEIR EARNINGS THE FASB PROPOSAL WHICH IS EXPECTED TO BE MADE SHORTLY HAS ALREADY GENERATED STRONG OPPOSITION FROM CORPORATE EXECUTIVES WHO CONSIDER THE PLAN UNFAIR AND CONFUSING CURRENTLY THE VALUE OF STOCK COMPENSATION FOR EXECUTIVES AND OTHER EMPLOYEES ISN'T CONSIDERED AN EXPENSE AND ISN'T DEDUCTED FROM EARNINGS THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS BELIEVES SUCH OPTIONS SHOULD BE ACCOUNTED FOR IN FINANCIAL RESULTS BECAUSE THEY ULTIMATELY COST THE COMPANY MONEY THE ROUNDTABLE AN INFLUENTIAL GROUP OF CHIEF EXECUTIVES FROM 200 MAJOR CORPORATIONS HOPES TO BLOCK THE PROPOSAL BY URGING MEMBERS TO AVOID USING THE FASBFAVORED METHOD IN VALUING STOCK OPTIONS FOR PROXY REPORTS SINCE OCTOBER THE SECURITIES AND EXCHANGE COMMISSION HAS REQUIRED COMPANIES TO DISCLOSE THE ESTIMATED VALUE OF SUCH OPTIONS TO SHAREHOLDERS THE SEC GIVES COMPANIES THE CHOICE OF USING TWO DIFFERENT METHODS IN HOW THEY VALUE THE OPTIONS HOWEVER THE ROUNDTABLE IN A PRIVATE LETTER TO MEMBERS DATED JAN 18 SAYS THE VALUATION METHOD FAVORED BY THE FASB COULD PLACE THE COMPANY IN A POSITION OF PREDICTING A FUTURE STOCK PRICE THAT WOULD ALMOST CERTAINLY BE WRONG AND POTENTIALLY MISLEADING TO INVESTORS THE FASBFAVORED METHOD KNOWN AS BLACKSCHOLES IS A COMPLEX MATHEMATICAL FORMULA THAT LOOKS AT VARIOUS FACTORS SUCH AS STOCKPRICE VOLATILITY IN DETERMINING THE CURRENT VALUE OF STOCK OPTIONS BY TELLING MEMBERS TO AVOID USING THE FASBFAVORED METHOD THE ROUNDTABLE HOPES TO GIVE LESS CREDIBILITY TO THE ACCOUNTING BODY AND ULTIMATELY STALL OR BLOCK THE PROPOSAL REQUIRING EARNINGS DEDUCTIONS THE ROUNDTABLE LETTER IS CLEARLY TRYING TO DERAIL FASB ACTION ABOUT STOCK COMPENSATION SAYS STEPHEN O'BYRNE A SENIOR VICE PRESIDENT OF STERN STEWART & CO A COMPENSATION CONSULTING FIRM IN NEW YORK ROBERT A SALWEN A PRINCIPAL WITH COMPENSATION CONSULTANTS WILLIAM M MERCER INC SAID THE ROUNDTABLE SENT THE LETTER AS DAMAGE CONTROL TO STOP MORE OF ITS MEMBERS FROM USING BLACKSCHOLES UPHOLDING THE FASB'S VIEWS THE ROUNTABLE DENIES IT IS TRYING TO BLOCK THE FASB PROPOSAL A SPOKESMAN FOR H BREWSTER ATWATER JR CHAIRMAN OF THE CORPORATE GOVERNANCE TASK FORCE OF ROUNDTABLE WHICH SENT THE LETTER SAID THAT THE PURPOSE OF THE LETTER WAS TO ALERT MEMBERS TO THE POTENTIAL FOR MISLEADING SHAREHOLDERS AND OTHERS TOLD OF THE LETTER TIMOTHY LUCAS FASB RESEARCH DIRECTOR SAID IT'S NO SECRET THAT THE ROUNDTABLE WOULD PREFER A DIRECTION DIFFERENT FROM WHAT WE'RE WORKING ON 9302050100 930205 PENTAGON AGENCY BEGINS TALKS WITH DISPLAY GROUP WASHINGTON THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY SAID IT STARTED NEGOTIATIONS WITH THE US DISPLAY CONSORTIUM TO COORDINATE AND STRENGTHEN THE ABILITY OF US COMPANIES TO MANUFACTURE HIGHDEFINITION DISPLAYS THE TALKS HAD BEEN EXPECTED WHEN AND IF THEY ARE COMPLETED DARPA SAID IT EXPECTS TO GRANT ABOUT 20 MILLION FOR A ONEYEAR EFFORT AMONG THE MEMBERS OF THE CONSORTIUM ARE AMERICAN TELEPHONE & TELEGRAPH CO XEROX CORP OPTICAL IMAGING SYSTEMS INC AND STANDISH INDUSTRIES INC ALSO IN THE GROUP ARE THE SIX COMPANIES THAT ARE MEMBERS OF THE AMERICAN DISPLAY CONSORTIUM ELECTROPLASMA INC MAGNASCREEN PHOTONICS IMAGING PLANAR SYSTEMS INC PLASMACO INC AND TEKTRONIX INC DARPA SAID THE COMPANIES AMONG OTHER THINGS WILL LINK DISPLAY MAKERS WITH THEIR SUPPLIERS AND ORGANIZE THE SUPPLIERS TO FOCUS ON COMMON OBJECTIVES THE DEFENSE DEPARTMENT IS A MAJOR USER OF HIGHDEFINITION DEVICES FOR ADVANCED WEAPONS SYSTEMS THE AGENCY NOTED 9302050099 930205 ABC WILL AIR THE EMMYS THWARTING ROTATION PLAN NEW YORK ABC IS RECLAIMING THE 45YEAROLD PRIMETIME EMMY AWARDS TELECAST FROM THE FOX NETWORK DISAPPOINTING THE UPSTART RIVAL AND NBC AND CBS WHICH ALL THOUGHT THE SHOW WOULD GO INTO POLITE ROTATION ON ALL THE NETWORKS THE ANNUAL SEPTEMBER AWARDS SHOW IN WHICH THE TELEVISION INDUSTRY LAVISHLY HONORS ITS OWN SUFFERED A STEEP RATINGS DECLINE WHEN IT MOVED FROM A COZY 22YEAR ROTATION ON ABC CBS AND NBC TO AIR EXCLUSIVELY ON NEWS CORP'S FOX BROADCASTING CO NETWORK SIX YEARS AGO IT WAS A COUP FOR FOX BUT RATINGS PLUMMETED TO A MERE 88 OF HOMES IN ITS FIRST OUTING FROM 231 IN ITS LAST AIRING ON A MAJOR NETWORK ON NBC IN 1986 AS FOX GREW HOWEVER SO DID THE SHOW DRAWING 139 OF VIEWERS FIFTH PLACE FOR THE WEEK LAST YEAR WHEN FOX'S CONTRACT EXPIRED THIS YEAR HOWEVER THE ACADEMY OF TELEVISION ARTS & SCIENCES SAID IT WANTED TO RETURN THE SHOW TO A SHARED ROTATION ON TUESDAY INDUSTRY EXECUTIVES SAID THE ACADEMY SIGNED SUCH AN AGREEMENT WITH THE FOUR NETWORKS FOR ABOUT 21 MILLION A YEAR IN RIGHTS FEES BUT THEN THE ACADEMY SURPRISED MOST EVERYONE BY ACCEPTING A SLIGHTLY HIGHER BID FROM ABC A UNIT OF CAPITAL CITIES/ABC INC ACCORDING TO PARTICIPANTS IN THE NEGOTIATIONS ABC WON EXCLUSIVE FOURYEAR RIGHTS TO THE EMMYS BY OFFERING ABOUT 25 MILLION ANNUALLY A BARGAIN GIVEN THE 3 MILLION A YEAR THAT FOX HAD BEEN PAYING WALT DISNEY STUDIOS PRESIDENT RICH FRANK NEGOTIATOR OF THE AGREEMENT SAID THE ACADEMY'S BOARD CHOSE ABC OVER THE ROTATION BECAUSE IT FELT THE AWARDS WOULD FARE BETTER WITH A MORE PERMANENT HOME WHERE A NETWORK HAD A STAKE IN THE OUTCOME ACADEMY EXECUTIVES COULDN'T BE REACHED TO COMMENT EXECUTIVES AT ABC'S RIVALS DECLINED TO COMMENT 9302050098 930205 INTUIT INC FILES 15 MILLION SHARES FOR PUBLIC OFFER BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MENLO PARK CALIF INTUIT INC WHOSE PERSONALFINANCE PROGRAM HAS MADE IT ONE OF THE HOTTEST RISING STARS IN PERSONALCOMPUTER SOFTWARE SAID IT HAS REGISTERED TO TAKE ITS SHARES PUBLIC THE CLOSELY HELD SOFTWARE HOUSE STARTED IN 1983 AFTER THE FOUNDER BECAME FRUSTRATED OVER WRITING CHECKS BY HAND SAID IT REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 15 MILLION SHARES OF ITS COMMON STOCK THE UNDERWRITER EXPECTS THE STOCK TO BE OFFERED AT 15 TO 17 A SHARE INTUIT SAID SCOTT COOK INTUIT'S COFOUNDER AND CHIEF EXECUTIVE OFFICER CARVED OUT A PROFITABLE NICHE FOR INTUIT IN THE LATE 1980S WITH A PROGRAM NAMED QUICKEN IT ALLOWS PCS TO BE USED TO WRITE CHECKS BALANCE ACCOUNTS CALCULATE BUDGETS AND DO OTHER PERSONALFINANCE TASKS THE PROGRAM WHICH CONSISTENTLY COMMANDS A HIGH SLOT ON SOFTWAREBESTSELLER LISTS CAUGHT ON QUICKLY BECAUSE IT WAS CHEAPER AND MUCH EASIER TO USE THAN OTHER FINANCE SOFTWARE THE COMPANY ALSO HAS GAINED CONVERTS THROUGH INNOVATIONS SUCH AS A PROVISION FOR USERS TO PAY BILLS OVER THE TELEPHONE ANOTHER SECRET TO INTUIT'S RAPID SALES GROWTH HAS BEEN ITS SALES OF SUPPLIES SUCH AS THE COMPUTER CHECKS AND ENVELOPES THAT ITS SOFTWARE USERS BUY EMBOLDENED BY THE STRONG POSITION OF QUICKEN THE COMPANY LAST YEAR BRANCHED INTO ACCOUNTING SOFTWARE FOR SMALL BUSINESSES MR COOK A FORMER PROCTER & GAMBLE CO PRODUCT MANAGER SAID IN DECEMBER THAT THE COMPANY'S SALES IN ITS FISCAL YEAR ENDED SEPT 30 WERE 83 MILLION INTUIT HAS KEPT ITS LEAD IN PART BECAUSE IT WAS QUICK TO REWRITE ITS PROGRAM TO RUN ON MICROSOFT CORP'S WINDOWS OPERATING SYSTEM WHICH SIMPLIFIES THE OPERATION OF PC SOFTWARE INTUIT HAS SO FAR FENDED OFF THE GIANT MICROSOFT ITSELF WHICH LAST YEAR INTRODUCED A COMPETING FINANCE PROGRAM THAT HAS FAILED TO GAIN MUCH MARKET SHARE THE INTUIT SHARES WILL BE OFFERED BY AN UNDERWRITING GROUP MANAGED BY MORGAN STANLEY & CO INC AND ROBERTSON STEPHENS & CO OF THE 15 MILLION SHARES ONE MILLION ARE BEING SOLD BY THE COMPANY AND 500000 SHARES BY CERTAIN SELLING STOCKHOLDERS INTUIT SAID ERIC DUNN THE COMPANY'S CHIEF FINANCIAL OFFICER REFUSED TO SAY WHEN THE OFFERING WOULD OCCUR OR HOW MANY SHARES WOULD BE OUTSTANDING AFTER THE OFFERING HE ALSO WOULDN'T DIVULGE THE COMPANY'S RECENT SALES OR EARNINGS HE REFERRED ALL INQUIRIES TO JAMES FEUILLE A MANAGING DIRECTOR AT ROBERTSON STEPHENS WHO DIDN'T RETURN CALLS REQUESTING INFORMATION 9302050097 930205 ENTERPRISE FOCUS ON FRANCHISING FRANCHISES LEARN FROM A DEATH SEEK US PREEMPTION BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WARNING BLINDLY GOING BY THE FRANCHISE BOOK CAN LEAD TO TROUBLE THE NATIONALLY PUBLICIZED DEATH OF A TWOYEAROLD BOY IN TACOMA WASH POINTS UP THE DANGERS OF SLAVISHLY FOLLOWING FRANCHISECHAIN PROCEDURES ATTORNEYS SAY STATE HEALTH OFFICIALS LINKED THE DEATH TO A TAINTED HAMBURGER THAT WAS COOKED ACCORDING TO FRANCHISER RULES BUT NOT STATE RULES AT A JACK IN THE BOX CHAIN RESTAURANT FRANCHISE CONTRACTS REQUIRE FRANCHISEES OF ANY BUSINESS FORMAT TO FOLLOW EXPLICIT OPERATING RULES USUALLY LAID OUT IN GREAT DETAIL IN A MANUAL KEPT SECRET FROM OUTSIDERS MAXIMUM COMPLIANCE WITH SUCH RULES WILL MAXIMIZE SUCCESS OR SO FRANCHISERS PROMISE FRANCHISEES INCLUDING MANY NEOPHYTES TO BUSINESS ARE USUALLY MORE THAN HAPPY TO GO ALONG FRANCHISER FOODMAKER INC IN SAN DIEGO SAYS ITS JACK IN THE BOX CHAIN HAD BEEN UNAWARE OF WASHINGTON STATE'S LATEST COOKING RULES COMPLIANCE WITH THOSE RULES WOULD HAVE KILLED DEADLY BACTERIA IN THE TAINTED MEAT THE HEALTH OFFICIALS SAY JACK IN THE BOX OUTLETS INCLUDING THE FRANCHISEROWNED TACOMA UNIT INVOLVED IN THE BOY'S DEATH HAD PERMITTED A LOWER TEMPERATURE INSIDE THE MEAT THE COMPANY SAYS AT MOST FRANCHISE CHAINS INCLUDING JACK IN THE BOX FRANCHISEES ARE EXPECTED TO ADHERE TO THE SAME RULES AS FRANCHISEROWNED STORES BUT SUCH DETAILED RULES CAN BE AN APPEALING TRAP FOR THE UNWARY THE AVERAGE FRANCHISEE THINKS THE FRANCHISER HAS COMPLIED WITH ALL APPLICABLE LAWS SAYS JACK C BRISCOE A FRANCHISING LAWYER IN PHILADELPHIA FRANCHISEES TAKE TOO MUCH FOR GRANTED HE RECOMMENDS THEY MAKE INDEPENDENT CHECKS RETAINING CONSULTANTS IF NECESSARY TO MAKE SURE PROCEDURES COMPLY WITH ALL LAWS JACK IN THE BOX NOW HAS CHANGED ITS COOKING RULES TO EXCEED THE WASHINGTON STATE STANDARD FOODMAKER SAYS FRANCHISERS URGE UNCLE SAM TO MUSCLE OUT STATE FRANCHISE REGULATORS IN A LETTER TO REP JOHN J LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE THE INTERNATIONAL FRANCHISE ASSOCIATION REPEATED ITS OPPOSITION TO PROPOSED FRANCHISING LEGISLATION BUT IF A FEDERAL LAW MUST BE ENACTED THE TRADE GROUP SAID IT SHOULD INCLUDE FEDERAL PREEMPTION OF STATES' DISCLOSURE RULES FOR FRANCHISERS BY MAKING DISCLOSURE ITS EXCLUSIVE DOMAIN THE FEDERAL GOVERNMENT WOULD IN EFFECT BE WIPING OUT YEARS OF EFFORTS BY STATES TO REIN IN FRANCHISERS THAT WOULD VASTLY SIMPLIFY COMPLIANCE FOR FRANCHISERS BUT IT WOULD ALSO ENRAGE STATE REGULATORS NOW STATES ARE FREE TO ENFORCE OR ENACT STATUTES MUCH TOUGHER THAN ANYTHING CONGRESS MIGHT COME UP WITH IN SUGGESTING A PREEMPTION PROVISION THE IFA DEPARTED FROM ITS RECENT PATTERN OF MERELY DENOUNCING OTHERS' PROPOSALS FOR FEDERAL LEGISLATION MR LAFALCE A NEW YORK DEMOCRAT HAS URGED NEW FEDERAL LAWS AIMED AT CURBING WHAT HE CALLS WIDESPREAD FRANCHISING ABUSE THE IFA SAYS SUCH LAWS ARE UNNECESSARY AND WOULD HARM A THRIVING ECONOMIC SECTOR THE IFA EVIDENTLY NOW AIMS TO INCREASE COMMUNICATION WITH MR LAFALCE IF MOSTLY TO OPPOSE HIS IDEAS SAY PEOPLE CLOSE TO THE TRADE GROUP OTHERS SAY CERTAIN FRANCHISERS HAVE MET INDIVIDUALLY WITH MR LAFALCE'S STAFFA DEVELOPMENT THAT THREATENS TO DILUTE THE POWER OF THE IFA UNLESS IT ASSUMES A MORE ACTIVE ROLE ITSELF AN IFA SPOKESMAN SAYS ONLY THAT THE GROUP RESPONDED TO MR LAFALCE'S INVITATION FOR SUGGESTIONS THE CONGRESSMAN AT LEAST FOR NOW OPPOSES PREEMPTION PHILOSOPHICALLY MY PREFERENCE IS TO ALLOW STATES DISCRETION TO GO BEYOND MINIMUM STANDARDS OF FEDERAL LAW HE SAYS ANY INITIATIVE OF MINE WILL NOT INCLUDE FEDERAL PREEMPTION STILL MR LAFALCE SAYS HE MIGHT CHANGE HIS MIND IF THE TRADE GROUP DECIDED TO ENDORSE AND ACTIVELY WORK FOR PASSAGE OF LEGISLATION ACCEPTABLE TO HIM MEANWHILE MR LAFALCE SAYS HE'S VERY CONFIDENT THE POWERFUL HOUSE ENERGY AND COMMERCE COMMITTEE WILL HOLD HEARINGS ON FRANCHISING THIS YEAR A SIGNIFICANT ADVANCE FOR THE ISSUE IN RECENT YEARS ONLY THE SMALL BUSINESS COMMITTEE HAS HELD SUCH HEARINGS THE IFA STANCE IS NEW THE TRADE GROUP IN RECENT YEARS HAS URGED PREEMPTION ONLY ON ONE NARROW ISSUE RATHER THAN FOR ALL FRANCHISEDISCLOSURE LAWS THE GROUP FEARED ANTAGONIZING STATE REGULATORS WHO ALSO ARE POTENTIALLY POWERFUL ALLIES FOR FRANCHISEES IN LEGISLATIVE BATTLES WITH FRANCHISERS THE REGULATORS MIGHT RETALIATE BY PROPOSING NEW STATE MEASURES GOVERNING FRANCHISING RELATIONSHIPS AND NOT JUST DISCLOSURE PEOPLE CLOSE TO THE IFA SPECULATE SUCH REGULATORS PROTECTING THEIR TURF WOULD FIGHT ANY KIND OF PREEMPTION SAYS JOSEPH J BJERKE SOUTH DAKOTA'S FRANCHISE ADMINISTRATOR THE EYES OF TEXAS ARE ON A LOOPHOLERIDDEN FRANCHISE BILL THE PROPOSAL WHICH HAS NARROWLY CLEARED THE STATE SENATE'S ECONOMIC DEVELOPMENT COMMITTEE WOULD REGULATE FASTFOOD FRANCHISING BUT THE BILL CONTAINS LOOPHOLES FOR FRANCHISERS THAT OWN REAL ESTATE FOR EXAMPLE ENABLING MCDONALD'S CORP AND MANY OTHERS TO ESCAPE ITS PURVIEW INDEED SEN BILL HALEY AUTHOR OF THE BILL SAYS IT WAS TAILORED TO CATCH MAINLY PEPSICO INC'S TACO BELL UNIT MR HALEY SAYS HE RESPONDED TO TACO BELL FRANCHISEE COMPLAINTS OVER SUCH ISSUES AS ENCROACHMENT ON EXISTING OUTLETS BY NEW ONES SOME FRANCHISEES STAND TO LOSE EVERYTHING A LIFE'S INVESTMENT HE SAYS CRITICS DENOUNCE THE MEASURE AS UNFAIR IT IS OFFENSIVE TO A LOT OF PEOPLE BECAUSE IT TARGETS A SINGLE COMPANY SAYS JOYCE G MAZERO A DALLAS FRANCHISING LAWYER RETAINED BY A GROUP THAT OPPOSES THE MEASURE NEIL A SIMON A WASHINGTON FRANCHISE ATTORNEY CALLS THE BILL SPECIALINTEREST LEGISLATION OF THE WORST SORT DAVID J KAUFMANN A NEW YORK LAWYER SPEAKING FOR PEPSICO EXPRESSES HOPE THAT THE LEGISLATURE WILL RECOGNIZE THIS DISPUTE AS A FAMILY MATTER THAT THE PARTIES ARE TRYING TO RESOLVE WITHOUT NEEDING LEGISLATION BRIEFS THE FEDERAL TRADE COMMISSION HAS EXEMPTED PORSCHE CARS NORTH AMERICA INC A PORSCHE AG OF GERMANY UNIT THAT SELLS AUTO DEALERSHIPS FROM MEETING FEDERAL DISCLOSURE RULES FOR FRANCHISERS PROSPECTIVE PORSCHE DEALERS ARE EXPERIENCED BUSINESS PEOPLE WHO DON'T REQUIRE SUCH PROTECTION THE FTC SAID IN A NEW MARKETING DRIVE GRAND METROPOLITAN PLC'S PEARLE VISION INC UNIT WHICH HAS LONG FRANCHISED EYEWEAR STORES FOR OPTOMETRISTS IS SEEKING TO SELL INOFFICE EYEWEAR DISPENSARIES AS A SIDELINE FOR OPHTHALMOLOGISTS 9302050096 930205 COMMODORE REPORTS SECONDQUARTER LOSS STOCK DECLINES 17 WEST CHESTER PA SHARES OF COMMODORE INTERNATIONAL LTD SLUMPED 17 ON NEWS OF A LARGE FISCAL SECONDQUARTER LOSS COMPARED WITH A PROFIT IN THE YEAREARLIER PERIOD THE PERSONAL COMPUTER MAKER REPORTED A LOSS OF 772 MILLION OR 233 A SHARE FOR THE SECOND QUARTER ENDED DEC 31 COMPARED WITH EARNINGS OF 401 MILLION OR 118 REVENUE PLUNGED 36 TO 2377 MILLION FROM 3716 MILLION IRVING GOULD CHAIRMAN AND CHIEF EXECUTIVE SAID HE WAS EXTREMELY DISAPPOINTED WITH THE COMPANY'S RESULTS COMMODORE'S SHARES CLOSED DOWN 1125 AT 550 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EARNINGS WERE SUBSTANTIALLY HURT BY A 50 MILLION CHARGE INCLUDING THE COST OF CONSOLIDATION AFTER THE CLOSING OF MANUFACTURING OPERATIONS IN HONG KONG AND GERMANY AND THE TRANSFER OF THESE OPERATIONS TO A NEW FACILITY IN THE PHILIPPINES THE CHARGE ALSO REFLECTED A LARGE RESERVE FOR INVENTORY WRITEDOWN TO ESTIMATED NET REALIZABLE VALUE DUE LARGELY TO NEW PRODUCTS LAUNCH AND FOR SPECIAL PRICING AND PROMOTIONAL ALLOWANCES UNIT SALES OF ITS AMIGA PERSONAL COMPUTERS DECLINED DESPITE GROWTH IN BRITAIN ITALY AND FRANCE COMMODORE SELLS THE MAJORITY OF ITS CONSUMERORIENTED COMPUTERS IN EUROPE IT ALSO BLAMED ITS LOSSES AND LOWER REVENUES ON THE SHARP WEAKENING OF CERTAIN MAJOR EUROPEAN CURRENCIES SALES FOR THE DECEMBER QUARTER WOULD HAVE BEEN 35 MILLION HIGHER IF THE SEPTEMBER QUARTER EXCHANGE RATES HAD BEEN IN EFFECT COMMODORE SAID MOST OF THE ADVERSE EFFECT ON SALES WAS ALSO REFLECTED IN PROFIT IT ADDED 9302050095 930205 POLITICS & POLICY FIRST LADY SENATORS MEET TO DISCUSS HEALTH CARE WASHINGTON HILLARY RODHAM CLINTON WENT TO CAPITOL HILL TO LAY THE POLITICAL GROUNDWORK FOR THE ADMINISTRATION'S YETTOBECOMPLETED HEALTHCARE PLAN AND TOLD DEMOCRATIC SENATORS THE WHITE HOUSE WANTS THEM TO ENACT A BILL OVERHAULING THE HEALTH SYSTEM THIS YEAR THE FIRST LADY AND WHITE HOUSE AIDE IRA MAGAZINER MET PRIVATELY AT THE CAPITOL WITH SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE THEN JOINED SOME 29 OTHER DEMOCRATIC SENATORS AT AN HOURLONG MEETING OF THEIR INFORMAL WORKING GROUP ON HEALTHCARE POLICY SPEAKING BRIEFLY TO REPORTERS AFTER THE SESSION MRS CLINTON WHO IS OVERSEEING THE ADMINISTRATION'S HEALTH TASK FORCE SAID THAT LEGISLATION RESTRUCTURING THE HEALTH SYSTEM IS NECESSARY TO MEET THE ECONOMIC DEMANDS AS WELL AS THE HUMAN DEMANDS OF THIS COUNTRY PARTICIPANTS DESCRIBED THE SESSION IN UPBEAT TONES DESPITE LONGSTANDING POLICY DIFFERENCES WITHIN THE GROUP MRS CLINTON TALKED BRIEFLY AT THE START OF THE MEETING THEN MOSTLY LISTENED AS EACH OF THE SENATORS SPOKE A LOT OF SPECIFIC SUGGESTIONS WERE MADE NO CONCLUSIONS WERE REACHED SEN MITCHELL SAID 9302050094 930205 WHO'S NEWS RYDER SYSTEMS INC RYDER SYSTEM INC MIAMI J ERNIE RIDDLE WAS NAMED SENIOR VICE PRESIDENT MARKETING AND SALES FOR THE COMMERCIALLEASING UNIT OF THIS TRANSPORTATION CONCERN A NEW POSITION MR RIDDLE 51 YEARS OLD WAS PREVIOUSLY A VICE PRESIDENT OF WORLDWIDE MARKETING OPERATIONS FOR XEROX CORP 9302050093 930205 WHO'S NEWS TRIZEC PICKS PRESIDENT CHAIRMAN CALGARY ALBERTA TRIZEC CORP SAID WILLARD J L'HEUREUX 46 YEARS OLD WILL BE APPOINTED PRESIDENT OF THIS REAL ESTATE CONCERN FOLLOWING THE COMPANY'S ANNUAL MEETING MARCH 31 KEVIN E BENSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TRIZEC WILL BECOME CHAIRMAN AFTER THE MEETING SUCCEEDING HAROLD P MILAVSKY 62 WHO WILL REMAIN ON THE BOARD THE COMPANY SAID MR L'HEUREUX AND MR BENSON ALSO 46 WILL SHARE THE DUTIES OF CHIEF EXECUTIVE OFFICER MR L'HEUREUX IS CURRENTLY PRESIDENT OF TORONTO MERCHANT BANKING AND HOLDING COMPANY HEES INTERNATIONAL BANCORP INC HEES HASN'T ANNOUNCED A SUCCESSOR FOR MR L'HEUREUX TRIZEC ALSO SAID IT WILL ASK SHAREHOLDERS TO VOTE AT THE MEETING ON A PROPOSAL TO REDUCE THE SIZE OF THE BOARD TO 16 MEMBERS FROM 25 AND TO INCLUDE MORE INDEPENDENT DIRECTORS ON THE BOARD 9302050092 930205 TECHNOLOGY AIRWAVE SEGMENT ALLOTTED FOR WIRELESS TECHNOLOGY WASHINGTON A HOUSE PANEL VOTED TO FREE A SIZABLE PORTION OF THE FEDERAL GOVERNMENT'S AIRWAVES FOR NEW WIRELESS COMMUNICATIONS TECHNOLOGIES THE MEASURE WHICH PASSED THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE ON A VOICE VOTE WOULD REQUIRE THE COMMERCE SECRETARY TO IDENTIFY 200 MEGAHERTZ OF GOVERNMENT SPECTRUM THAT COULD BE TRANSFERRED TO THE PRIVATE SECTOR OR TO STATE AND LOCAL GOVERNMENTS THE BILL WAS INTRODUCED BY REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE AND BY EDWARD MARKEY CHAIRMAN OF THE TELECOMMUNICATIONS PANEL SIMILAR MEASURES PASSED THE HOUSE IN THE TWO PREVIOUS CONGRESSES THIS LEGISLATION WILL BENEFIT PUBLIC SAFETY OFFICIALS BROADCASTERS MOBILE COMMUNICATIONS SERVICES THE COMPUTER INDUSTRY AND MANY OTHERS SAID REP MARKEY A MASSACHUSETTS DEMOCRAT HE ALSO SAID THAT PRIVATE USE COULD CREATE THOUSANDS OF JOBS AND PERHAPS WHOLE NEW INDUSTRIES HE COMPARED THE LEGISLATION TO A DECISION IN 1968 THAT SET ASIDE FREQUENCIES FOR CELLULAR TELEPHONES AN INDUSTRY THAT HAS MUSHROOMED TO ABOUT 10 BILLION 9302050091 930205 WHO'S NEWS ROSS SYSTEMS INC ROSS SYSTEMS INC REDWOOD CITY CALIF RICHARD LEFEBVRE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RAXCO OF ROCKVILLE MD HAS BEEN NAMED TO THE BOARD OF THIS ACCOUNTING SOFTWARE COMPANY 9302050090 930205 REVIEW & OUTLOOK EDITORIAL FOOTBALL'S DAY OF DREAD IT WAS NOT UNLIKE ORSON WELLES'S WAR OF THE WORLDS THE RADIO BROADCAST WHOSE REPORT OF AN INVASION FROM ANOTHER PLANET PRODUCED PANIC AMONG GULLED LISTENERS BUT THIS TIME IT WASN'T THE PUBLIC THAT PANICKED SHORTLY BEFORE SUPER BOWL SUNDAY WORD WENT FORTH FROM A DEVOUTLY PROGRESSIVE MEDIA WATCHDOG GROUP CALLED FAIRNESS AND ACCURACY IN REPORTING FAIR THAT ON THE BIG FOOTBALL DAY WIVES AND GIRLFRIENDS EN MASSE COULD EXPECT TO BE BATTERED AND ASSAULTED BY THE MAN OF THE HOUSE AND INDEED NBC BROADCAST A SOMBER PUBLIC SERVICE SPOT BEFORE THE GAME ANNOUNCING THAT DOMESTIC VIOLENCE IS A CRIME WORD WENT FORTH ALSO THAT STUDIES EXISTED PROVING THAT WOMANBATTERING BY FOOTBALLCRAZED HUSBANDS AND BOYFRIENDS ROSE BY AN ASTOUNDING 40 ON SUPER BOWL SUNDAYS THAT BATTERED WOMEN'S SHELTERS WERE BESIEGED ON THIS DAY BY CALLS FOR HELP THUS FAIR'S SPECTER OF SHELTERS' STAFFS GRIMLY AWAITING THE BLOODDRENCHED TIDES OF VICTIMS SEEKING REFUGE FROM MALES RUN AMOK DURING THE BILLS AND COWBOYS GAME ALL THESE PRONOUNCEMENTS WERE RECEIVED AS SACRED WRIT BY AN ENTIRELY CREDULOUS ARMY OF JOURNALISTS WE ARE TALKING HERE AFTER ALL ABOUT THE TOUGHEST INVESTIGATIVE BATTALIONS BUT FEED THEM A STORY ABOUT MASS VICTIMIZATION AND HOW THE WOMEN OF THE NATION HAVE TO GO INTO HIDING ON A CERTAIN SUNDAY OF THE YEAR AND THEY HAVE NO QUESTIONS IN ADDITION TO THE AIR TIME GIVEN THIS MYTH BY NBC ABC AND CBS THE BOSTON GLOBE REPORTED DOMESTIC VIOLENCE HOT LINES LIGHT UP AS GAME KICKS OFF THE SAN FRANCISCO EXAMINER RECORDED THE REFLECTIONS OF A WOMAN REMEMBERING HOW SHE WALKED DOWN A SAN FRANCISCO STREET HAVING THIS FEELING OF DREAD DURING A GAME BECAUSE THERE WERE SURE TO BE SO MANY BATTERED WOMEN THAT NIGHT MICHAEL COLLIER OF THE OAKLAND TRIBUNE WROTE WITH EVIDENT ASSURANCE THAT THE SUPER BOWL CAUSES BOYFRIENDS HUSBANDS AND FATHERS WHO WATCH THE GAME TO EXPLODE LIKE MAD LINEMEN LEAVING GIRLFRIENDS WIVES AND CHILDREN BEATEN A TORONTO STAR WRITER INSTRUCTED READERS THAT THE SUPER BOWL'S MOST BRUTAL HITS WILL OCCUR IN LIVING ROOMS ACROSS CANADA AND THE UNITED STATES THE LIST OF MEDIA BELIEVERS WHO EMBRACED THE STORY GOES ON AND ON THE SUPER BOWL RING HOWEVER GOES TO AN EXCEEDINGLY ANXIOUS ROBERT LIPSYTE OF THE NEW YORK TIMES A BIG GAME ELECTRIFIES THE RECROOM WITH VIOLENT ACTION AND SEXY ADVERTISING HEIGHTENING MALEFEMALE TENSIONS CREATING A CLIMATE OF AGGRESSION SOMEONE SHUT UP THAT KID OR SOMEONE'S GOING TO GET POUNDED THERE WAS ONE EXCEPTION TO ALL THIS THE WASHINGTON POST'S KEN RINGLE DECIDED TO LOOK INTO THE DAY OF DREAD STORY HE PURSUED AN ARCANE REPORTING TECHNIQUE THAT HAS APPARENTLY SLIPPED FROM FAVOR MR RINGLE CALLED UP THE SOURCE OF THE ORIGINAL STORY TO ASK IF IT WERE TRUE THE BASIS FOR THE FAIR ACTIVISTS' SENSATIONAL ASSERTIONS ABOUT SUPER BOWL SUNDAY WAS AN OLD DOMINION UNIVERSITY STUDY THAT THEY SAID CONCLUDED THAT BEATINGS AND HOSPITAL ADMISSIONS ROSE 40 AFTER WASHINGTON REDSKINS' FOOTBALL VICTORIES THAT'S NOT WHAT WE FOUND AT ALL PROFESSOR JANET KATZ ONE OF THE AUTHORS OF THE STUDY TOLD MR RINGLE THERE WERE SOME VERY TENTATIVE FINDINGS ABOUT WOMEN RECEIVING TREATMENT AFTER TELEVISED FOOTBALL GAMES BUT THE STUDY CERTAINLY DOESN'T SUPPORT WHAT THESE WOMEN ARE SAYING THE PROFESSOR CONCLUDED FAIR'S PUBLICISTS DOBISKY ASSOCIATES ALSO QUOTED FORENSIC PSYCHOLOGIST CHARLES PATRICK EWING AS HAVING DECLARED SUPER BOWL SUNDAY A DAY WHEN AGENCIES GET MOST REPORTS OF DOMESTIC BATTERING AND VIOLENCE MR EWING TOLD THE POST I NEVER SAID THAT FURTHER I DON'T KNOW THAT TO BE TRUE DAVID SILBER THE CHAIRMAN OF THE PSYCHOLOGY DEPARTMENT AT GEORGE WASHINGTON UNIVERSITY AND AN EXPERT ON DOMESTIC VIOLENCE TOLD THE POST'S REPORTER I KNOW OF NO STUDY DOCUMENTING ANY SUCH LINK BETWEEN DOMESTIC VIOLENCE AND FOOTBALL AND I KNOW THE LITERATURE VERY WELL FAIR REPRESENTATIVE LINDA MITCHELL SAID THAT SHE RECOGNIZED DURING A SUPER BOWL NEWS CONFERENCE THAT AN ATTORNEY FOR THE CALIFORNIA WOMEN'S LAW CENTER WAS MISREPRESENTING THE OLD DOMINION STUDY BUT THIS MEMBER OF A MEDIA WATCHDOG GROUP DEVOTED TO FAIRNESS AND ACCURACY HADN'T CORRECTED HER COLLEAGUE'S STATEMENTS BELIEVING THAT SHE HAS A RIGHT TO REPORT IT AS SHE WANTS THERE'S SOME FEAR THAT THIS FIASCO HAS HURT THE CREDIBILITY OF EFFORTS TO CURTAIL THE BEATING OF SPOUSES NOT SO IT HAS MAINLY HURT THE RELATIONSHIP BETWEEN GROUPS LIKE FAIR AND REPORTERS WHOSE SYMPATHIES GET IN THE WAY OF DOING THEIR JOBS RIGHT 9302050089 930205 IRISH MUSHROOMS THRIVE BY FEEDING BRITISH APPETITE COTTAGE INDUSTRY IS COMPETING WITH HIGHTECH RIVALS USING LOWTECH APPROACH BY CAROLE CRAIG SPECIAL TO THE WALL STREET JOURNAL DUNDALK IRELAND ALL HIS WORKING LIFE VIVION BRENNAN FANTASIZED ABOUT BEING A FARMER TODAY A FEW FEET FROM HIS BACK DOOR HE CAN SURVEY HIS DREAM COME TRUE SIX PLASTIC TUNNELS FILLED WITH DUNG THIS FRIENDLY 41YEAROLD IN BLUE COVERALLS AND RUBBER BOOTS STARTED FARMING PART TIME 11 YEARS AGO WITH SIX ACRES NEAR THE BORDER OF NORTHERN IRELAND THE LAND IS ACHINGLY BEAUTIFUL BUT HARDLY RICH MR BRENNAN REMEMBERS THINKING HOW THE PLOT WAS SO SMALL WE WOULD BE HARD PRESSED TO DO ANYTHING WITH IT THE SECRET TO HIS SUCCESS THE AGARICUS BISPORUS A HIDDEN IRISH TREASURE MORE COMMONLY KNOWN AS THE MUSHROOM FUNGI HAVE NEVER BEEN AS STRONGLY ASSOCIATED WITH THE EMERALD ISLE AS SAY THE LEPRECHAUNS THAT SIT ATOP THEM YET IRELAND HAS QUIETLY BECOME THE LARGEST PERCAPITA EXPORTER OF MUSHROOMS IN THE WORLD IT'S A COTTAGE INDUSTRY THAT HAS WELL MUSHROOMED EXPANDING FIVEFOLD IN 10 YEARS TO ANNUAL PRODUCTION OF 40000 TONS AND AN EXPORT MARKET VALUED AT 30 MILLION IRISH POUNDS OR PUNTS 448 MILLION THE LITTLE WHITE CAPS PRESENT A RARE BRIGHT SPOT IN IRELAND'S HEAVILY SUBSIDIZED AGRICULTURAL SECTOR STILL IT HASN'T BEEN A BED OF ROSES CURRENCY GYRATIONS DIZZYING EUROPE SINCE SEPTEMBER HAVE LEFT A LOT OF PEOPLE RUNNING FOR COVER BUT FOR IRISH MUSHROOM MOGULS THE DARKEST HOURS MAY NOW BE OVER A COLLECTIVE SIGH OF RELIEF COULD BE HEARD WHEN DUBLIN GAVE UP ITS DEFENSE OF THE PUNT SATURDAY DEVALUING THE CURRENCY 10 PEOPLE WILL BE FEELING PRETTY CONFIDENT ABOUT THE FUTURE NOW SAYS CATHAL MAC CANNA WHO LEFT HIS JOB AS A GOVERNMENT AGRICULTURAL RESEARCHER SIX YEARS AGO TO SET UP A MARKETING VENTURE CALLED CARBURY MUSHROOMS IRONICALLY THE MEDIUM FOR BOTH THE BOOM AND THE NEARBUST IN THE IRISH MUSHROOM BUSINESS HAS BEEN BRITAIN THE BRITISH ARE INCREDIBLE MUSHROOMEATERS MUNCHING THEIR WAY THROUGH MORE THAN 100000 TONS OF THE STUFF EACH YEAR ABOUT 25 OF WHICH COMES FROM IRELAND THEY EVEN EAT MUSHROOMS FOR BREAKFAST SAYS A SOMEWHAT DISBELIEVING MR MAC CANNA BUT THIS SORT OF MARKET DEPENDENCE TURNED SOUR WHEN BRITAIN ABANDONED THE EUROPEAN EXCHANGE RATE MECHANISM IN SEPTEMBER SENDING THE IRISH PUNT'S VALUE SOARING 17 AGAINST THE POUND AND HITTING IRISH MUSHROOM GROWERS RIGHT IN THE POCKETBOOK THANKS TO GOVERNMENT SUBSIDIES THE INDUSTRY MAINTAINED ITS MARKET SHARE BUT BOTH GROWERS AND MARKETERS WERE PINCHED BY TIGHTER MARGINS IRELAND'S FUNGI FARMERS ARE A TENACIOUS BUNCH IN A SECTOR THAT BUCKS THE HIGHTECH TREND IN AGRICULTURE THE BOOM OWES MUCH TO A NEW GROWING METHOD REAL MUCK AND MAGIC STUFF SAYS MR MAC CANNA THAT IS CREDITED TO MR MAC CANNA AND HIS FORMER RESEARCH LAB A METHOD CULLED FROM THE WORK OF MANY AGRICULTURAL SCIENTISTS IN THE BEGINNING THE BEST THING YOU COULD DO WAS MAKE A MISTAKE SAYS MR BRENNAN HEAD OF THE IRISH MUSHROOM GROWERS ASSOCIATION ALL ONE REALLY NEEDS IS A NINEMETER TUNNEL MADE BY STRETCHING A FEW ROLLS OF POLYETHYLENE WITH SOME INSULATION OVER A FRAME THEN FILL THE ENCLOSURE WITH PLASTIC GARBAGE BAGS WHICH IN TURN ARE FILLED WITH DUNG STRAW AND MUSHROOM SPORES STRINGENT HEAT AND HUMIDITY CONTROLS ARE THE ONLY COMPLICATED PART THE SPORES MUST BE NURTURED IN A WARM ENVIRONMENT THEN SUDDENLY COOLED PRODUCING MUSHROOMS LOCAL WOMEN HELP HARVEST ABOUT FIVE CROPS A YEAR USUALLY BEFORE THEIR CHILDREN COME HOME FROM SCHOOL THEN MARKETING COMPANIES LIKE CARBURY WHO ALSO SUPPLY THE SPORELADEN COMPOST BUY THE MUSHROOMS AND DELIVER THEM TO RETAILERS IT'S THE ANTITHESIS OF HIGHTECH METHODS USED BY IRELAND'S MAIN COMPETITORS BRITAIN AND THE BENELUX WHERE MUSHROOMS ARE BIG BUSINESS GROWN IN HUGE MECHANIZED GREENHOUSES WITH ROWS OF GROWING TRAYS STACKED FIVE AND SIX HIGH STARTUP COSTS FOR A SIMPLE IRISH THREETUNNEL OPERATION RECKONED TO BE THE MINIMUM TOTAL ABOUT 45000 PUNTS OF WHICH AS MUCH AS 25 CAN BE PICKED UP BY THE GOVERNMENT DEPENDING ON THE REGION SOME AREAS ARE DESIGNATED DISADVANTAGED AND QUALIFY FOR MORE EUROPEAN COMMUNITY FUNDS THESE FARMS YIELD ON AVERAGE ABOUT 56 TONS OF MUSHROOMS A YEAR AND AN INCOME OF ABOUT 15000 PUNTS IRISH GROWERS AND EXPORTERS MAY HAVE WEATHERED THE CURRENCY CRISIS SO FAR BUT OTHER PROBLEMS ARE ON THE HORIZON THE DUTCH WHO PRODUCED 160000 TONS OF MUSHROOMS IN 1991 ARE ESTIMATED TO HAVE ADDED 25 TO THAT LAST YEAR BECAUSE OF CHANGES IN THEIR OWN TECHNOLOGY THOSE 40000 ADDITIONAL TONS WOULD BE EQUAL TO THE ENTIRE IRISH PRODUCTION BUT IT IS PRODUCTION THAT HAS NOT YET FOUND A HOME SAYS PAT WALSH OF WALSH MUSHROOMS IRELAND'S SECONDLARGEST MUSHROOM EXPORTER THE IRISH HOPE THAT THE DUTCH WILL LOOK AWAY FROM BRITAIN AND TOWARD HARDCURRENCY REGIONS SEEKING TO UNDERCUT FRENCH PRODUCERS AND MASTER THE GERMAN MARKET BUT MR WALSH FEARS THAT THE DUTCH MAY USE THEIR IMPROVED SYSTEM TO SEE OFF THE FRENCH THE BRITISH AND THE IRISH STILL HE WARNS HIS COMPETITORS THE SMALL PEOPLE DON'T CONVENIENTLY FOLD THEIR TENTS AND DISAPPEAR IN FRONT OF THE PANZERS COMING THEY TEND TO BE A LITTLE BIT MORE RESILIENT 9302050087 930205 HEARD ON THE STREET RED FLAGS FLY FOR ONEPRODUCT TECH COMPANIES BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LISTEN UP THE SMART GUYS ARE WHISPERING A WARNING AS THEY WALK AROUND THE WILD TECHNOLOGY STOCK PLAYGROUND BEWARE THE ONEPRODUCT COMPANY SINGLEPRODUCT COMPANIES ARE LOOKING INCREASINGLY VULNERABLE TO IMITATORS AND INNOVATORS TRYING TO CATCH THE NEXT WAVE OF PROFITS IN COMPUTERS AND COMMUNICATIONS SO THE TECHSTOCK PROS ARE WEEDING OUT THEIR PORTFOLIOS THESE SAVVY INVESTORS INCREASINGLY FAVOR COMPANIES WITH A BROAD ARRAY OF SUCCESSFUL PRODUCTS SUCH AS CIRRUS LOGIC OR IF THEY DO BUY A SINGLEPRODUCT STOCK THEY DEMAND A PRODUCT SO ADVANCED THAT IT CAN DOMINATE A MARKET FOR A YEAR OR TWO SUCH AS POWERSOFT THIS WEEK'S HOT INITIAL PUBLIC OFFERING THE TECHSTOCK REALM IS MUCH WORSE THAN BIOTECHNOLOGY FOR A STOCK PICKER SAYS LAWRENCE BOWMAN MANAGER OF FIDELITY EMERGING GROWTH FUND GIVE ME A HOT BIOTECH PRODUCT AND I HAVE AT LEAST SEVEN YEARS OF PATENT PROTECTION GIVE ME A HOT TECHNOLOGY PRODUCT AND I MAY NOT EVEN HAVE SIX MONTHS SUCH FEARS ARE SQUASHING A FEW TECHSTOCK PRICES ALREADY ANALYSTS SAY AND THEY COULD KEEP ON SEPARATING THE TECH STOCKS INTO TIERS FOR WEEKS TO COME THE NATION'S CORE COMPUTING AND NETWORKING ARCHITECTURES ALREADY HAVE BEEN DESIGNED AND NOW ARE CONTROLLED BY A FEW BIGGER COMPANIES SUCH AS MICROSOFT NOVELL AND INTEL SO NEWER COMPANIES TYPICALLY STAKE THEIR FUTURES AND FORTUNES ON ONE OR TWO ENHANCEMENTS FOR WHAT'S ALREADY OPERATING IN THE MARKET SUCH COMPANIES ARE RISKY FOR INVESTORS THEIR MAIN REVENUE GENERATORS CAN BE BLOWN AWAY BY INNOVATION OR IMITATION EITHER BY A GIANT SUCH AS MICROSOFT OR A SMALL COMPETITOR SAYS CHARLES A MORRIS MANAGER OF T ROWE PRICE ASSOCIATES' SCIENCE & TECHNOLOGY FUND IT IS VERY IMPORTANT AT THIS STAGE IN THE TECHNOLOGY CYCLE THAT INVESTORS UNDERSTAND WHAT THEY OWN AND REALLY PUT MONEY TO WORK IN COMPANIES THAT ARE OF THE HIGHEST QUALITY THE PROS RATTLE OFF A LIST OF SINGLEPRODUCT NIGHTMARES THERE'S ARTISOFT A MAKER OF PERSONAL COMPUTER NETWORKING SOFTWARE WHOSE STOCK HAS TUMBLED 65 FROM ITS 12MONTH HIGH TO 12 1/8 OR STAC ELECTRONICS WHICH MAKES DATA COMPRESSION SOFTWARE ALSO DOWN BY TWOTHIRDS OR MORE RECENTLY MCAFEE ASSOCIATES WHICH LICENSES COMPUTER VIRUS DETECTION SOFTWARE MCAFEE'S STOCK IS OFF 38 FROM ITS HIGH TO 14 3/8 DOWN 1 1/8 YESTERDAY INVESTORS SHOULD NEVER TAKE SOLACE IN PATENT PROTECTION THE PROS WARN BETTER TO BUY COMPANIES THAT HAVE PROPRIETARY PRODUCTS WITH EXTREMELY HIGH BARRIERS TO ENTRY OR SUPERIOR INNOVATIONS THAT LEAP MILES AHEAD OF COMPETITORS BEWARE THE SOARING SALES REPORTED IN PROSPECTUSES OF SINGLEPRODUCT COMPANIES THAT ARE PLANNING IPOS MR BOWMAN SAYS SURE THE DOCUMENTS DESCRIBE A SUCCESSFUL PRODUCT BUT IT MAY BE ONE THAT'S MATURING READ AHEAD TO THE SECOND ACT MANY TIMES SINGLEPRODUCT COMPANIES GO PUBLIC PRECISELY SO THEY CAN FUND MAKEORBREAKIT RESEARCH AND DEVELOPMENT IN THAT CASE TECHNOLOGY IPO INVESTORS ARE BUYING A HIGHRISK OPTION ON THE SUCCESS OF THE COMPANY'S FUTURE PIPELINE OF PRODUCTS INVESTORS SEEM TO THINK YOUNG TECH COMPANIES ARE GOING TO LAUNCH VERTICALLY FOR FIVE YEARS BASED ON PAST RESULTS MR BOWMAN SAYS BUT IN TECHNOLOGY YOU NEVER HAVE MORE THAN A THREEYEAR LEAD AND THAT'S THE EXCEPTION USUALLY YOU ONLY HAVE TWO BEFORE SOMEBODY LEAPFROGS YOU AND YOU'RE OUT OF LUCK MR MORRIS OF T ROWE PRICE SAYS TECH STOCKS HAVE RALLIED SO STRONGLY RECENTLY THAT INVESTORS ESSENTIALLY ARE BETTING ON AN ENTIRELY NEW GENERATION OF PRODUCTS SOME THEY MAY NOT FULLY UNDERSTAND THAT CAN DRIVE EARNINGS IN 1994 THAT'S A VERY SPECULATIVE WAGER THE BET YOU MAKE IS THAT THE PIPELINE OF PRODUCTS AND THE MARKET THE COMPANY IS IN IS GOING TO ALLOW THE COMPANY TO GROW FASTER THAN THE INVESTMENT BANKERS REALIZE MR MORRIS SAYS HE SAYS MOST INVESTORS WOULD DO BETTER TO STICK WITH HIGHQUALITY SEASONED COMPANIES AT TODAY'S VALUATIONS RATHER THAN PAY UP FOR POWERSOFT WHICH HAS SOARED TO 38 FROM THIS WEEK'S IPO PRICE OF 20 HE'D PREFER TO PUT HIS MONEY IN SYBASE NOW AT 62 WHICH HAS BEEN AROUND IN THE STOCK MARKET LONGER BOTH COMPANIES OPERATE IN A HOT AREA KNOWN AS THE CLIENT/SERVER SYSTEMS MARKET SYBASE WENT PUBLIC IN 1991 AT 1350 FOR THE ADVENTUROUS RUSSELL CRABS DIRECTOR OF RESEARCH AT SOUNDVIEW FINANCIAL GROUP SUGGESTS SOME PONDERING WHEN ANALYZING IPOS OF SINGLEPRODUCT COMPANIES DO CURRENT OR FUTURE PRODUCTS FILL ONLY A TACTICAL NEED OR A STRATEGIC NEED TACTICAL PRODUCTS PROVIDE BANDAID FIXES TO PROBLEMS THAT WILL EVENTUALLY BE SOLVED MORE ELEGANTLY STAC ELECTRONICS AND QUARTERDECK IN HIS OPINION ARE TWO COMPANIES THAT PEGGED THEIR FUTURE ON A TACTICAL PROBLEM MEMORY EXPANSION SHARES OF BOTH COMPANIES HAVE SLUMPED STRATEGIC PRODUCTS TEND TO BE ONE OF THREE THINGS CORE ELEMENTS OF EXISTING SYSTEMS PRODUCTS THAT RADICALLY INCREASE PRODUCTIVITY OR NEW DESIGN PARADIGMS THAT OPERATE WITH MORE REFINEMENT AND EFFICIENCY MR CRABS CITES COMPANIES SUCH AS PARAMETRIC TECHNOLOGY WHICH SELLS COMPUTERAIDEDDESIGN SOFTWARE PLATINUM SOFTWARE WHICH SELLS ACCOUNTING SOFTWARE THAT RUNS ON COMPUTER NETWORKS AND PEOPLESOFT WHICH SELLS HUMANRESOURCES SOFTWARE THAT RUNS ON PC NETWORKS TWO COMPANIES HOTLY CONTESTED IN THE STRATEGIC VS TACTICAL PRODUCT DEBATE ARE CREATIVE TECHNOLOGY OF MILPITAS CALIF AND MEDIA VISION OF FREMONT CALIF BOTH MAKE ADDON CIRCUIT CARDS AND CHIPS THAT GIVE PERSONAL COMPUTERS SOUND CAPABILITY THEIR STOCKS HAVE SOARED STEVEN ESKENAZI ANALYST AT ALEX BROWN & SONS EXPECTS CREATIVE TECHNOLOGY'S REVENUE TO NEARLY TRIPLE TO 242 MILLION IN FISCAL 1993 ENDING IN JUNE THAT SHOULD LIFT EARNINGS TO 142 A SHARE HE SAYS THE STOCK IS AT 36 3/4 OFF 1 YESTERDAY THE COMPANY WENT PUBLIC AT 15 IN NOVEMBER STEVEN OSSAD ANALYST AT COWEN & CO EXPECTS MEDIA VISION'S REVENUE TO RISE 105 TO 129 MILLION THIS YEAR EARNINGS COULD INCREASE TO 93 CENTS A SHARE HE SAYS THE STOCK IS AT 33 3/4 OFF 3/4 YESTERDAY BEARS ARGUE THAT PERSONALCOMPUTER MAKERS ARE STARTING TO MAKE SOUND CHIPS A STANDARD FEATURE INSIDE THE COMPUTER SO WHO NEEDS ADDON CARDS EVEN IF COPYCAT CHIP MAKERS COME ALONG THEY'LL HAVE TO PAY CREATIVE TECHNOLOGY A ROYALTY MR ESKENAZI BETS OR CREATIVE WILL BE THE PROVIDER OF CHIPS THAT'S BECAUSE MANY ENTERTAINMENT AND EDUCATION SOFTWARE PACKAGES ARE DESIGNED FOR CREATIVE'S AUDIO PRODUCTS DEFENDERS OF MEDIA VISION ARGUE SIMILARLY MR OSSAD SAYS THERE WILL ALWAYS BE ROOM FOR SOUND AND VIDEO ENHANCEMENTS BECAUSE STANDARDIZED PRODUCTS ARE JUST THAT STANDARD BOTH COMPANIES ALSO SELL SOUNDANDVIDEO UPGRADE PACKAGES WHICH DIVERSIFIES THEIR EARNINGS AWAY FROM AUDIO CARDS ANALYSTS NOTE THESE PRODUCTS NOW SELL ROBUSTLY THEY SAY BUT BEARS THINK BOTH COMPANIES ARE EXTREMELY OVERVALUED THEIR LOGIC IS COMPELLING THE REMAINING MARKET FOR SOUND AND MULTIMEDIA UPGRADE KITS COULD PRODUCE ABOUT 200 MILLION IN NET INCOME FOR CREATIVE TECHNOLOGY AND ABOUT 30 MILLION IN PROFIT FOR MEDIA VISION ASSUMING PROFIT MARGINS STAY THE SAME OVER THE NEXT TWO YEARS ONE ANALYST ESTIMATES BUT THE STOCK MARKET IS VALUING CREATIVE TECHNOLOGY'S BUSINESS AT ABOUT 15 BILLION AND MEDIA VISION'S AT ABOUT 350 MILLION WHAT ARE INVESTORS BETTING ON THAT BOTH COMPANIES WILL ROLL OUT ASYETUNANNOUNCED MULTIMEDIA PRODUCTS WORTH SEVERAL BILLIONS IN ANNUAL SALES THEY'RE BETTING THAT BOTH COMPANIES WILL TURN INTO SOMETHING DIFFERENT THAN THEY ARE TODAY BUT SUCH A TRANSITION TAKES INTENSIVE RESEARCH AND DEVELOPMENT NOT TO MENTION DEFT MANAGEMENT CREATIVE TECHNOLOGY HAS SPENT ONLY ABOUT 5 MILLION ON RESEARCH IN ITS LIFETIME WHILE MEDIA VISION HAS ONLY SPENT ABOUT 6 MILLION ANALYSTS AGREE EXPECTATIONS FROM THOSE EXPENDITURES ARE ENORMOUS MEANWHILE THE LONG SHADOWS OF MICROSOFT AND INTEL ARE FALLING OVER THE YOUNG MULTIMEDIA MARKET MR MORRIS OF T ROWE PRICE SAYS PEOPLE WANT TO PLAY MULTIMEDIA BECAUSE IT'S COOL BUT THE ODDS ARE NOT IN YOUR FAVOR TO MAKE THE BET THAT CREATIVE WILL MAKE A SUCCESSFUL TRANSITION TO A CHIP AND SYSTEMS COMPANY STEVE ALLAN CHIEF FINANCIAL OFFICER AT MEDIA VISION DOESN'T SOUND WORRIED WE ARE LOOKING AT BROADBASED MULTIMEDIA PRODUCTS NOT JUST SOUND CARDS HE SAYS THE COMPANY'S RESEARCH EXPENDITURES ARE TYPICAL FOR ITS SIZE AND CLEARLY WE ARE IN A LARGE MARKET THAT'S GROWING RAPIDLY 9302050086 930205 CORPORATE FOCUS SPATE OF SETBACKS SHAKES CONFIDENCE IN GERBER PRODUCTS BABYFOOD KING SCRAMBLES TO REGAIN FOOTING GUARD ITS MARKET DOMINANCE BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL GERBER PRODUCTS CO PROCLAIMS THAT BABIES ARE OUR BUSINESS BUT LATELY THAT BUSINESS HAS BEEN MORE TRYING THAN A NEWBORN WITH COLIC TROUBLES EMERGED IN OCTOBER WHEN THE COMPANY WARNED WALL STREET THAT FISCAL SECONDQUARTER EARNINGS WOULD BE OFF AMONG THE REASONS GERBER'S INABILITY TO FILL A SURGE OF BABY FOOD ORDERS BEFORE AN ANNOUNCED PRICE INCREASE TOOK EFFECT TWO MONTHS LATER CAME MORE BAD NEWS EARNINGS WOULD BE HURT BECAUSE COMPETITORS HJ HEINZ CO AND RALSTON PURINA CO'S BEECHNUT UNIT WERE BEATING UP GERBER WITH HEFTY DISCOUNTS AS A RESULT GERBER'S US BABY FOOD UNIT PROJECTED VOLUME WOULD BE 3 TO 4 BELOW LAST YEAR'S ON THAT DISCLOSURE GERBER'S STOCK TUMBLED LIKE A STACK OF BLOCKS DROPPING 5 A SHARE TO THE LOW 30S WHERE IT LANGUISHES GERBER CLOSED YESTERDAY AT 30675 UP 25 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NEXT GERBER'S PRESIDENT QUIT FOR UNEXPLAINED PERSONAL REASONS HE HAD BEEN WITH THE FREMONT MICH COMPANY LESS THAN TWO YEARS THAT SAME WEEK GERBER HEINZ AND RALSTON WERE SERVED WITH A HALF DOZEN CLASSACTION LAWSUITS ALLEGING A PRICEFIXING CONSPIRACY IF THAT WASN'T ENOUGH THERE'S STILL THE PROBLEM GERBER CAN DO LITTLE ABOUT FEWER AMERICANS ARE HAVING BABIES THIS FLOOD OF DISAPPOINTMENTS HAS SHAKEN WALL STREET'S CONFIDENCE IN THE LONGREIGNING KING OF BABY FOOD AMID INVESTOR IMPATIENCE SEVERAL ANALYSTS ACCUSED MANAGEMENT OF CREATING A CREDIBILITY GAP NOW SOME ARE EVEN SPECULATING ABOUT A POSSIBLE TAKEOVER GERBER IS A VULNERABLE COMPANY CONTENDS DONALDSON LUFKIN & JENRETTE ANALYST WILLIAM LEACH HE RATES ITS SHARES VERY ATTRACTIVE CITING THE LOW PRICE GERBER'S EXCEPTIONAL FINANCIAL QUALITIES AND HIS BELIEF THAT BARRING MORE SURPRISES EARNINGS SHOULD REBOUND IN FISCAL 1994 BUT HE ADDS IF THE CURRENT MANAGEMENT WHICH HAS DELIVERED CONSISTENTLY DISAPPOINTING RESULTS CANNOT GET ITS ACT TOGETHER PERHAPS ANOTHER COMPANY WILL DO IT FOR THEM WITH A MARKET VALUE OF ABOUT 23 BILLION GERBER IS VIEWED BY SOME AS A BARGAIN WAITING TO BE PLUCKED ANALYSTS MENTION FOREIGN FOOD GIANTS NESTLE SA AND BSN SA AS POSSIBLE BIDDERS FOR WHAT THEY SEE AS A MONEY MACHINE BUT KIDDER PEABODY ANALYST DAVID RABINOWITZ CAUTIONS CLIENTS ABSENT A TAKEOVER BID THE STOCK IS DEAD MONEY FOR THREE TO SIX MONTHS MANAGEMENT IS SCRAMBLING TO PROVE THE SKEPTICS WRONG AND REPAIR ONE OF THE WORLD'S GREAT FRANCHISES THE COMPANY HOLDS AN AWESOME 70 SHARE OF THE US BABYFOOD MARKET WE'RE BUILDING THE BUSINESS AGAIN WE'RE OVER THE HUMP DECLARES CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALFRED A PIERGALLINI A FORMER SALESMAN WHO ASSUMES BLAME FOR GERBER'S PROBLEMS I'M GUARDEDLY OPTIMISTIC DEEP PROMOTION ALLOWANCES BY RALSTON AND HEINZ ARE DECLINING AND PRICE PARITY IS RETURNING TO BABY FOOD SECTIONS MR PIERGALLINI SAYS HE SAYS THE SURGE OF PANTRYLOADING BY BARGAIN HUNTERS IS EBBING TO STIR UP SALES GERBER IS MAILING MULTIPLEPURCHASE COUPONS TO CUSTOMERS THE CEO SAYS HE'S CONFIDENT GERBER WILL POST FISCAL 1993 EARNINGS IN THE MIDDLE OF ANALYSTS' ESTIMATES OF 180 TO 190 A SHARE FOR THE YEAR AND 50 CENTS TO 60 CENTS A SHARE FOR THE CURRENT FOURTH QUARTER BEFORE THE DOUBLEWHAMMY REVISIONS ANALYSTS HAD EXPECTED GERBER TO EARN 212 TO 215 FOR THE YEAR ENDING MARCH 31 MR PIERGALLINI TAKES PAINS TO DIVERT BLAME FROM JAMES T SMITH THE ONETIME PROCTER & GAMBLE CO INTERNATIONAL EXECUTIVE WHO RESIGNED AS GERBER'S PRESIDENT LAST MONTH THE CHAIRMAN HIMSELF AT GERBER LESS THAN FOUR YEARS DESCRIBES HIS WORKING RELATIONSHIP WITH MR SMITH AS VERY CORDIAL NEITHER HE NOR THE BOARD HAD REQUESTED MR SMITH'S RESIGNATION MR PIERGALLINI SAYS THOUGH THERE WERE INKLINGS IT WAS COMING SO WHY DID MR SMITH LEAVE SOME OUTSIDERS FAMILIAR WITH THE TWO MEN BELIEVE THAT MR SMITH WHO HAD RUN P&G'S LARGEST OVERSEAS HEALTH AND BEAUTY PRODUCTS BUSINESS DIDN'T FIND THE OPERATING FREEDOM HE HAD ANTICIPATED MOREOVER THEY SAY HE WAS FRUSTRATED THAT HE PROBABLY WOULDN'T SUCCEED MR PIERGALLINI ANY TIME SOON BOTH ARE IN THEIR MID40S A FORMER GERBER COLLEAGUE CHARACTERIZES MR SMITH AS A CLASSIC WORKAHOLIC WHO NEEDS TO WIN MR SMITH DECLINED TO BE INTERVIEWED WALL STREET STILL QUESTIONS WHY MANAGEMENT DIDN'T RESPOND SOONER WHEN BEECHNUT SLASHED PRICES AS MUCH AS 50 LAST FALL AFTER GERBER HAD ANNOUNCED A 55 PRICE INCREASE GERBER COULD HAVE OFFERED TRADE DISCOUNTS SOONER TO NARROW THE PRICING GAP SOME SAY COMPANY EXECUTIVES THOUGH CONTEND THEY WERE CAUGHT IN A TIMING BIND WE WERE GOING UP WHILE THEY WERE GOING DOWN SAYS LEW AMMIRATI A GERBER SENIOR VICE PRESIDENT SHORTTERM THE PRICE DIFFERENCE WALLOPED GERBER'S SALES SINCE SHOPPERS OFTEN BUY SEVERAL WEEKS WORTH OF BABY FOOD AT ONCE BUT GERBER PROBABLY COULDN'T HAVE ANTICIPATED HOW DEEP BEECHNUT WOULD CUT THE RALSTON UNIT USED THE DISCOUNTS TO CLEAR OUT ITS INVENTORY OF 45OUNCE BABY FOOD JARS AS IT DOWNSIZED TO THE PREVAILING FOUROUNCE SIZE BEECHNUT APPARENTLY SAW A RARE OPPORTUNITY TO GRAB PRECIOUS MARKETSHARE POINTS IT NOW HAS A 14 SHARE OF THE US BABY FOOD MARKET ABOUT THE SAME AS HEINZ ON THAT RELATIVELY SMALL BASE THE SHIFT OF ONE OR TWO POINTS IS MUCH MORE SIGNIFICANT TO BEECHNUT THAN TO GERBER WHICH HAS NEARLY FIVE TIMES THE DOMESTIC BUSINESS NEW PRODUCTS ARE KEY TO EXPANDING GERBER'S DOMESTIC DOMINANCE AND TO HELP OFFSET THE IMPACT OF A LOWER BIRTH RATE MR SMITH FOR EXAMPLE HAD OVERSEEN THE ROLLOUT OF A LINE OF FOODS TARGETED AT HISPANICS CALLED TROPICAL IT INCLUDES DESSERTS SUCH AS MANGO AND BANANAS AND GUAVA WITH TAPIOCA A LATE ENTRY INTO THE INFANTFORMULA BUSINESS GERBER HAS TAKEN SOME LUMPS IN THAT AREA AS WELL IT LICENSES BRISTOLMYERS SQUIBB CO TO MAKE FORMULA UNDER THE GERBER NAME BUT LAST YEAR BRISTOLMYERS SHRANK ITS PROMOTIONAL SUPPORT OF THE PRODUCT CUTTING GERBER'S ROYALTY REVENUE NIELSEN MARKETING RESEARCH FIGURES NOW GIVE GERBER FORMULA A 43 SHARE UP FROM JUST 28 LAST JUNE LIKE OTHER US FOOD GIANTS GERBER INCREASINGLY LOOKS ABROAD FOR GROWTH IT SELLS BABY FOOD IN ABOUT 50 COUNTRIES MANAGEMENT IS SANGUINE IT CAN DOUBLE OVERSEAS REVENUE TO PERHAPS 500 MILLION ANNUALLY WITHIN A FEW YEARS BUT KIDDER PEABODY'S MR RABINOWITZ CALLS IT AN OVERZEALOUS PURSUIT OF INTERNATIONAL BUSINESS AND QUESTIONS WHETHER GERBER HAS THE PATIENCE TO IMPLEMENT A LONGTERM PLAN HOW ABOUT A NESTLEGERBER ALLIANCE HE WONDERS HJ HEINZ CO RALSTON CO'S BEECHNUT UNIT ROSS LABORATORIES MEADJOHNSON NESTLE SA'S CARNATION UNIT 9302050085 930205 REVIEW & OUTLOOK EDITORIAL REINVENTING PORK FOR A MINUTE IT ALMOST SOUNDED AS IF SOME GOVERNMENT WAS GOING TO BE REINVENTED PRESIDENT CLINTON PROMISED THIS WEEK TO EASE THE BUREAUCRATIC LOAD ON STATERUN MEDICAID PROGRAMS FREEING UP ENTERPRISING GOVERNORS TO EXPERIMENT AT PROVIDING BETTER CARE AT LOWER COST SOUNDS GOOD BUT THEN A CURIOUS FACTOID CAUGHT OUR EYE IN THE LOS ANGELES TIMES ACCOUNT OF THIS WONDER IT WON'T MAKE MEDICAID CHEAPER OR DELIVER MORE BANG FOR THE BUCK AFTER ALL ON THE CONTRARY THE PRESIDENT'S PLAN WILL BOOST MEDICAID'S BLOATED BUDGET BY AS MUCH AS 11 BILLION A YEAR MR CLINTON'S FORMER GUBERNATORIAL BUDDIES HAVE BEEN SCREAMING FOR THESE CHANGES AND NO WONDER THE REFORM WOULD IMMEDIATELY SHIFT A BIG CHUNK OF MEDICAID'S COSTS OFF THEIR BACKS AND ONTO THE FEDS' THE LEVER IS MR CLINTON'S PROMISE TO REDRAW RULES LAID DOWN IN THE CLOSING WEEKS OF THE BUSH ADMINISTRATION THESE RULES WERE MEANT TO CURB THE BOOKKEEPING GIMMICKS THAT INNOVATIVE STATES EXPLOITED TO MILK EXTRA BUCKS OUT OF UNCLE SAM ONE SUCH GIMMICK INVOLVES THE PROVIDER TAXES THAT STATES IMPOSE ON HOSPITALS DOCTORS AND NURSING HOMES THEIR ONLY PURPOSE IS TO PAD THE COSTS THAT UNCLE SAM ULTIMATELY HAS TO REIMBURSE THIS BRINGS IN EXTRA MEDICAID MONEY WHICH THE STATES THEN FUNNEL BACK TO THE PROVIDERS THROUGH INCREASED FEES WHILE EXPANDING THEIR MEDICAID PROGRAMS ACCORDING TO AN AP DISPATCH YOU KNOW SOMETHING FISHY IS GOING ON WHEN HOSPITALS IN TEXAS GO TO THEIR STATE LEGISLATURE AND LOBBY TO HAVE A TAX IMPOSED ON THEM OR WHEN HOSPITALS IN PENNSYLVANIA BORROW 365 MILLION FROM A GROUP OF BANKS JUST TO DONATE IT TO THE STATE'S MEDICAID PROGRAM THESE TAXES AND DONATIONS ARE THEN RECYCLED BACK TO THE HOSPITALS AS MEDICAID FEES ALONG WITH A FAT BUNDLE OF MATCHING FEDERAL FUNDS PART OF THE BUSH ADMINISTRATION'S GOAL WAS TO CRACK DOWN ON THE ABUSE OF SPECIAL INCENTIVES FOR HOSPITALS THAT TAKE ON A DISPROPORTIONATE SHARE OF POOR PATIENTS GOGETTERS IN A STATE LIKE NEW HAMPSHIRE HAVE MANAGED TO MAKE THEMSELVES ELIGIBLE FOR 190 MILLION IN SPECIAL GRANTS WHILE THE LESS OPPORTUNISTIC FOLKS IN IOWA GET ONLY 2 MILLION WAGS IN THE BAY STATE DECLARED A SECOND MASSACHUSETTS MIRACLE AFTER A 513 MILLION MEDICAID WINDFALL WIPED OUT GOVERNOR WELD'S 1991 BUDGET DEFICIT MR BUSH SUBSEQUENTLY IMPOSED CAPS ON SUCH PAYMENTS MR CLINTON WOULD RAISE THE CAPS OR SHUCK THEM ALTOGETHER WHEN WE FIRST HEARD THE WORDS REINVENTING GOVERNMENT WE FIGURED IT HAD SOMETHING TO DO WITH GIVING TAXPAYERS MORE VALUE FOR THEIR MONEY AND CERTAINLY ANYTHING THAT PRODS THE STATES TO DELIVER MEDICAID MORE EFFICIENTLY WOULD FIT THE BILL MEDICAID IS A RUNAWAY TRAIN THAT NOW COSTS 140 BILLION HAVING DOUBLED IN FOUR YEARS BUT WE SHOULD HAVE GOTTEN A HEADSUP WHEN THIS WEEK'S CHANGES SAILED BY WITH A FRIENDLY WAVE FROM CALIFORNIA'S REP HENRY WAXMAN MR WAXMAN IS THE ULTRALIBERAL CHAIRMAN OF THE HOUSE HEALTH SUBCOMMITTEE HE'S NOT THE SORT TO FAVOR A STRICTER DIET FOR A PROGRAM THAT PUMPS BILLIONS INTO HIS STATE INDEED HE LED THE CHARGE IN CONGRESS TO BLOCK AN ATTEMPT IN 1991 BY THE BUSHIES TO REIN IN MEDICAID ABUSE BACK IN NOVEMBER PRESIDENTELECT CLINTON VISITED THE WHITE HOUSE AND URGED MR BUSH TO HURRY UP AND ISSUE NEW REIMBURSEMENT STANDARDS FOR MEDICAID THESE ARE THE SAME STANDARDS MR CLINTON NOW WANTS TO DUMP MAYBE SOME DAY THE REFORMS OF THIS WEEK REALLY WILL SPUR INNOVATION BY THE STATES RIGHT NOW ALL WE SEE IS INSTANT PORK AND HIGHER OUTLAYS COURTESY OF THE FEDERAL TAXPAYER 9302050084 930205 REVIEW & OUTLOOK EDITORIAL ASIDES AT BAT AGAIN A TOUGH ANTICRIME INITIATIVE THAT NEARLY GOT ON THE BALLOT IN WASHINGTON STATE LAST YEAR IS BACK THE THREE STRIKES YOU'RE OUT INITIATIVE WOULD SENTENCE A PERSON CONVICTED OF THREE VIOLENT FELONIES TO LIFE IN PRISON LAST YEAR SUPPORTERS FELL JUST A FEW THOUSAND SIGNATURES SHORT OF THE REQUIRED NUMBER AFTER A HURRIED CAMPAIGN OF ONLY TWO MONTHS THIS YEAR THEY'RE STARTING EARLY PETITIONS ARE NOW GOING OUT AND EXPECT TO HAVE LITTLE TROUBLE COLLECTING THE 185000 SIGNATURES THEY NEED BY JULY 2 TO GET ON THE NOVEMBER BALLOT IN THE MEANTIME A THREE STRIKES YOU'RE OUT BILL HAS BEEN INTRODUCED IN THE STATE'S HOUSE OF REPRESENTATIVES AND 52 OF THE 98 MEMBERS HAVE ALREADY PROMISED TO VOTE YES SOUNDS AS IF THE ANTICRIME TEAM IN WASHINGTON STATE MAY GET ITS HOME RUN THIS TIME 9302050083 930205 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 310 60 TO 89 DAYS 312 90 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 320 180 TO 239 DAYS 325 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 317 30 DAYS 319 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 272 TWO MONTHS 277 THREE MONTHS 284 SIX MONTHS 303 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 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 304 60 DAYS 306 90 DAYS 307 120 DAYS 313 150 DAYS 316 180 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 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 9 JAPAN 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 748 60 DAYS 757 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 9302050082 930205 ECONOMY PRODUCTIVITY IN US JUMPED BY 27 IN 1992 LARGEST GAIN IN 20 YEARS SHOWS FIRMS MAKING DO ON CURRENT STAFF LEVELS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FACED WITH INTENSE COMPETITION AND AN OVERRIDING NEED TO CUT COSTS US BUSINESSES SHARPLY BOOSTED THEIR PRODUCTIVITY 27 IN 1992 THE LARGEST GAIN IN 20 YEARS THE LABOR DEPARTMENT SAID SEPARATELY THE COMMERCE DEPARTMENT SAID ORDERS TO US FACTORIES JUMPED 53 IN DECEMBER AND 33 IN 1992 THE FIRST FULLYEAR INCREASE IN TWO YEARS THE FIGURES SHOW INCREASING STRENGTH IN THE MANUFACTURING SECTOR AFTER A WEAK SUMMER IN RESPONSE TO COMPETITIVE PRESSURES BUSINESSES ARE DOING AN EXTRAORDINARY JOB IN SQUEEZING SPECTACULAR EFFICIENCIES OUT OF THEIR WORKERS SAID STEPHEN ROACH SENIOR ECONOMIST FOR MORGAN STANLEY & CO IN NEW YORK THAT MEANS IMPROVED EFFICIENCIES FOR OUR COMPANIES AND AN IMPROVED STANDARD OF LIVING FOR OUR CITIZENS THAT'S THE LONGTERM EFFECT IN THE SHORT TERM THE BIG INCREASE IN PRODUCTIVITY MEANS LOTS OF PEOPLE ARE STILL WITHOUT WORK BECAUSE COMPANIES ARE MAKING DO WITH CURRENT STAFFING LEVELS EVEN THOUGH THE ECONOMY IS GAINING MOMENTUM THE BAD NEWS OF THIS STORY IS THAT NO NEW JOBS ARE BEING CREATED SAID JOSEPH DUNCAN CHIEF ECONOMIST OF DUN & BRADSTREET IN NEW YORK TAKE A LOOK IN THE FOURTH QUARTER OF LAST YEAR PRODUCTIVITY SHOT UP 4 THAT HELPS EXPLAIN WHY THE ECONOMY'S PICKUP IN ACTIVITY FOR THE SAME PERIOD AT A 38 PACE ONLY GENERATED ABOUT 200000 NEW JOBS NORMALLY PRODUCTIVITY INCREASES DURING AN ECONOMIC RECOVERY THAT'S BECAUSE BUSINESSES ARE CAUTIOUS ABOUT HIRING AFTER AN ECONOMIC DOWNTURN IN THE CURRENT RECOVERY AT LEAST TWO OTHER FACTORS ARE PUSHING UP PRODUCTIVITY FIRST THERE IS ENORMOUS RESTRUCTURING OCCURRING IN THE CORPORATE SECTOR TO MAKE UP FOR PAST EXCESSES FOR EXAMPLE LARGE COMPANIES SUCH AS SEARS ROEBUCK & CO AND IBM ARE STILL ANNOUNCING LAYOFFS IN ADDITION THERE HAS BEEN A LOT OF INVESTMENT IN CAPITAL EQUIPMENT SUCH AS COMPUTERS DON RATAJCZAK HEAD OF ECONOMIC FORECASTING AT GEORGIA STATE UNIVERSITY SAID THIS INDICATES THAT THE RECENT PRODUCTIVITY GAINS ARE A MAJOR SECULAR IMPROVEMENT AND NOT JUST A CYCLICAL POP BUSINESSES ARE USING TECHNOLOGY MORE THAN THEY DID IN THE PAST TO INCREASE EFFICIENCY HE SAID ALTHOUGH INCREASES WON'T STAY AT 27 A YEAR THEY SHOULD STILL STAY AT A COMFORTABLE 15 ANNUALLY THAT MEANS ECONOMIC GROWTH WON'T GENERATE THE SAME NUMBER OF JOBS IT HAS IN THE PAST ANALYSTS SAID PRESIDENT CLINTON SHOULD KEEP IN MIND THE SHIFT BY BUSINESSES TOWARD INCREASING PRODUCTIVITY WHEN CREATING HIS ECONOMIC STIMULUS PACKAGE IF CLINTON THINKS HE'S GOING TO REOPEN THE FLOOD GATES TO HIRING BY GIVING THE ECONOMY STIMULUS HE IS MISSING THE DYNAMIC THAT'S GOING ON ASSERTED MR ROACH OF MORGAN STANLEY BUSINESSES ARE NOT GOING TO TURN BACK THE CLOCK ON THEIR EFFORTS TO INCREASE EFFICIENCY THEY HAVE WORKED TOO HARD TO BE SURE THE SHORTTERM NEWS ISN'T ALL BAD AT LEAST ONE OF THE FIRST FRUITS OF THE PRODUCTIVITY BOOM HAS RIPENED ALREADY INFLATION IS WELL UNDER CONTROL PRIMARILY BECAUSE LABOR COSTS HAVE BEEN CURBED THAT MEANS PEOPLE CAN SPREAD THEIR MONEY OVER A LARGER ARRAY OF GOODS AND SERVICES AND COMPANIES HAVE BEEN ABLE TO INCREASE PROFITS DESPITE SLUGGISH REVENUE GROWTH MEANWHILE THE LABOR DEPARTMENT SAID 11000 FEWER PEOPLE FILED CLAIMS FOR INITIAL UNEMPLOYMENT INSURANCE BENEFITS IN THE WEEK ENDED JAN 23 PUSHING DOWN THE NUMBER TO A SEASONALLY ADJUSTED 352000 MARTIN LUTHER KING JR DAY FELL DURING THE WEEK GIVING MANY FILERS ONE DAY LESS TO FILE CLAIMS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9302050081 930205 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 BORDEN INC 250 MILLION OF NOTES DUE FEB 15 2023 PRICED AS 7 7/8 AT 98027 TO YIELD 805 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 090 POINT ABOVE THE TREASURY'S WHENISSUED 30YEAR BOND RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH FIRST BOSTON CORP CITIZENS FIDELITY BANK & TRUST 100 MILLION OF NOTES PRICED THROUGH MERRILL LYNCH & CO THE NOTES DUE MAY 11 1994 WAS PRICED AS 385 AT 99983 TO YIELD 3869 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 015 POINT ABOVE COMPARABLE TREASURYS THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P CITIZENS FIDELITY IS A UNIT OF PNC FINANCIAL CORP CONSOLIDATED EDISON CO OF NEW YORK 300 MILLION TWOPART ISSUE OF DEBENTURES PRICED THROUGH LEHMAN BROTHERS INC THE FIRST PART CONSISTING OF 150 MILLION OF DEBENTURES DUE FEB 1 2001 WAS PRICED AS 6 1/2 AT 99183 TO YIELD 6633 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 037 POINT ABOVE THE TREASURY 775 NOTE DUE FEBRUARY 2001 THE SECOND PART CONSISTING OF 150 MILLION OF DEBENTURES DUE FEB 1 2002 WAS PRICED AS 6 5/8 AT 98981 TO YIELD 6778 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 040 POINT ABOVE THE TREASURY 75 NOTE DUE MAY 2002 BOTH PARTS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P DIAL PAGE INC 85 MILLION OF SENIOR NOTES DUE FEB 15 2000 PRICED AT PAR TO YIELD 1225 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY ALEX BROWN & SONS INC THE ISSUE IS RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE FEB 16 1996 PRICED AT PAR TO YIELD 482 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 009 POINT ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE FEB 12 2003 PRICED AT PAR TO YIELD 678 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 044 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC NEWS AMERICA HOLDINGS INC 500 MILLION OF SENIOR NOTES DUE FEB 15 2005 PRICED AS 8 1/2 AT PAR TO YIELD 8 1/2 A 214POINT SPREAD OVER THE WHENISSUED 10YEAR TREASURY NOTE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC NEWS AMERICA IS A UNIT OF NEWS CORP OF AUSTRALIA PAINEWEBBER GROUP 100 MILLION OF SENIOR NOTES DUE FEB 15 2003 PRICED AS 7 7/8 AT 99957 TO YIELD 7881 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 150 POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH DEALERS LED BY THE BORROWER'S INVESTMENT BANKING ARM PAINEWEBBER INC MASSACHUSETTS INDUSTRIAL FINANCE AGENCY 1879 MILLION OF BONDS FOR THE MASSACHUSETTS REFUSETECH INC PROJECT PRICED BY A BEAR STEARNS & CO GROUP INCLUDED IN THE OFFERING ARE 148 MILLION TAXEXEMPT SERIES 1993A BONDS AND 399 MILLION TAXABLE SERIES 1993B BONDS SERIES A BONDS ARE PRICED TO YIELD FROM 525 IN 1999 TO 630 IN 2005 THE 2001 AND 2002 BONDS YIELD 545 AND 615 RESPECTIVELY THE 2008 YIELD IS 630 SERIES A BONDS DUE IN 19992001 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P AS FOR THE TAXABLE SERIES B BONDS YIELDS RANGE FROM 460 IN 1994 TO 695 IN 1999 THE YIELD FOR THE 1995 BONDS IS 535 AND THE 1997 YIELD IS 638 THE SERIES B BONDS ARE ALL FSAINSURED AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P GUPTA CORP INITIAL OFFERING OF 22 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO TECOGEN INC 375 MILLION COMMON SHARES OFFERED AT 9 EACH THROUGH UNDERWRITERS LED BY NATWEST SECURITIES LTD TECOGEN IS A UNIT OF THERMO ELECTRON CORP GENERAL MOTORS ACCEPTANCE CORP 291 BILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED IN EIGHT PARTS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP A 322 MILLION CLASS IN CLASS A1 SENIOR CERTIFICATES WAS PRICED AS 31875 AT PAR TO YIELD 31875 0125 POINT BELOW THE THREEMONTH LONDON INTERBANK OFFERED RATE 225 MILLION IN CLASS A2 SENIOR CERTIFICATES PRICED AS 33125 AT PAR TO YIELD 33125 0125 POINT BELOW SIXMONTH LIBOR 125 MILLION IN CLASS A3 SENIOR CERTIFICATES PRICED AS 34375 AT PAR TO YIELD 34375 0125 POINT BELOW NINEMONTH LIBOR 478 MILLION IN CLASS A4 FLOATINGRATE CERTIFICATES PRICED WITH AN INITIAL COUPON OF 33125 AT PAR TO YIELD 33125 FLAT WITH THREEMONTH LIBOR THE FIRST FOUR CLASSES WERE GIVEN SHORTTERM RATINGS OF PRIME1 BY MOODY'S A1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC THE 1147 BILLION IN CLASS A5 FLOATINGRATE CERTIFICATES WERE PRICED AS 34625 AT PAR TO YIELD 34625 015 POINT ABOVE THREEMONTH LIBOR 318 MILLION IN CLASS A6 FIXEDRATE CERTIFICATES PRICED AS 490 AT 99 30/32 TO YIELD 4950 OR 050 POINT ABOVE THE INTERPOLATED TWO AND THREEYEAR TREASURY NOTE 196 MILLION IN CLASS A7 FIXEDRATE CERTIFICATES PRICED AS 535 AT 99 31/32 TO YIELD 5391 A 055 POINT SPREAD OVER THE INTERPOLATED THREETOFIVE YEAR TREASURY SECURITIES FEDERAL HOME LOAN BANKS 199 MILLION OF NOTES DUE FEB 13 1995 PRICED AT PAR TO YIELD 418 THE NONCALLABLE ISSUE WAS PRICED WITH A YIELD IDENTICAL TO TREASURYS OF COMPARABLE MATURITY THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO PROVINCE OF SASKATCHEWAN CANADA 200 MILLION MARKS OF EUROBONDS DUE FEB 12 2003 AT AN ISSUE PRICE OF 10175 VIA CSFB EFFECTENBANK RECOMMENDED REOFFER PRICE OF 10025 COUPON FOR THE FIRST TWO YEARS IS 11 AND THEREAFTER AT 1875 MINUS TWICE THE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 195 KINGDOM OF SPAIN SOVEREIGN FOUR BILLION MARKS OF 7 1/4 EUROBONDS DUE MARCH 4 2003 AT A REOFFER LEVEL OF 9950 VIA DRESDNER BANK AG YIELD 732 ANNUALLY A SPREAD OF 031 POINT ABOVE THE 10YEAR GERMAN GOVERNMENT BOND FEES 0325 POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL 200 MILLION OF NOTES DUE AUG 23 1996 WITH A COUPON OF 7 FOR THE FIRST SIX MONTHS AT AN ISSUE PRICE OF PAR VIA JP MORGAN SECURITIES LTD AFTER THE FIRST SIX MONTHS THE INTEREST RATE WILL BE EQUAL 12 1/2 MINUS THE SIXMONTH LIBOR FEES 020 ABBEY NATIONAL TREASURY SERVICES UK 100 MILLION OF FLOATINGRATE NOTES DUE FEB 19 1996 AT PAR VIA MERRILL LYNCH INTERNATIONAL INITIAL COUPON IS 7 3/8 SEMIANNUALLY AND THEN THE COUPON WILL FLOAT AT A LEVEL EQUAL TO 12 3/8 MINUS THE SIXMONTH LIBOR GUARANTEED BY ABBEY NATIONAL PLC FEES 020 EKSPORTFINANS AS NORWAY 150 MILLION SWISS FRANCS OF 5 PRIVATELY PLACED NOTES DUE MARCH 9 1999 PRICED AT 10150 VIA UNION BANK OF SWITZERLAND FEES TOTAL 1 5/8 DAIMLERBENZ NORTH AMERICA CORP GERMAN PARENT 100 MILLION CANADIAN DOLLARS OF 6 1/2 EUROBONDS DUE MARCH 4 1996 AT AN ISSUE PRICE OF 9821 VIA DEUTSCHE BANK CAPITAL MARKETS LTD REOFFERED AT 9702 TO YIELD 692 ANNUALLY A SPREAD OF 048 POINT ABOVE THE COMPARABLE CANADIAN GOVERNMENT ISSUE GUARANTEED BY DAIMLERBENZ AG FEES 1 3/8 BANCO DE LA NACION ARGENTINA NEW YORK BRANCH 150 MILLION OF 9 SEMIANNUAL EUROBONDS DUE FEB 25 1996 AT AN ISSUE PRICE OF PAR VIA CHEMICAL INVESTMENT BANK LTD FEES 1 CREDIT LOCAL DE FRANCE FRANCE 50 MILLION OF A COLLARED FLOATINGRATE NOTE DUE DEC 2002 VIA LEHMAN BROTHERS INTERNATIONAL COUPON IS 025 POINT BELOW THE SIXMONTH LIBOR REOFFERED AT 10050 FEES 1/2 9302050080 930202 CHANGING INDUSTRY BIG STEEL IS THREATENED BY LOWCOST RIVALS EVEN IN JAPAN KOREA INTEGRATED PLANTS ARE HURT BY EFFICIENT MINIMILLS AND A CAPACITY SURPLUS DECLINE OF THE BLAST FURNACE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL KIMITSU JAPAN NIPPON STEEL CORP'S KIMITSU WORKS HAS LONG SYMBOLIZED THE MIGHT OF BIG JAPANESE STEEL MILLS IT IS THE BIGGEST MILL OF THE BIGGEST STEELMAKER IN THE WORLD'S NO 1 STEELPRODUCING COUNTRY BUT ITS HULKING GRAY BUILDINGS RISING FOR MILES ALONG TOKYO BAY ARE BECOMING AN EMBLEM OF SOMETHING ELSE DECLINE THREE HUNDRED MILES FROM HERE IN THE CITY OF OKAYAMA LITTLE TOKYO STEEL MANUFACTURING CO HAS OPENED A PLANT THAT IS 1/20TH THE SIZE OF TRADITIONAL JAPANESE MILLS BUT FIVE TIMES AS EFFICIENT THE NEW MILL HAS UNDERCUT BY 30 THE SHEETSTEEL PRICES OF NIPPON STEEL AND OTHER BIG MAKERS TOKYO STEEL PLANS TWO OTHER MINIMILLS AND OTHER SMALL JAPANESE STEELMAKERS ARE JOINING THE ASSAULT WITH EVEN MORE SMALL MILLS THE ATTACK BY THESE LOWERCOST RIVALS IS ADDING TO OTHER HEADACHES A STRONG YEN HIGH WAGES FALLING DEMAND AND STAGNANT PRODUCTIVITY AND BEGINNING TO MAKE BIG STEEL IN JAPAN LOOK LIKE BIG STEEL IN THE US A DECADE AGO NET PROFITS FOR THE THREE LARGEST JAPANESE STEELMAKERS NIPPON STEEL NKK CORP AND KAWASAKI STEEL CORP WERE DOWN 81 92 AND 77 RESPECTIVELY IN THE SIX MONTHS ENDED SEPT 30 AND LOSSES ARE POSSIBLE FOR THE YEAR ENDING MARCH 31 STEELMAKERS ARE CLOSING SOME OPERATIONS AND TRYING TO DIVERSIFY AND LAST WEEK THE US COMMERCE DEPARTMENT IMPOSED DUTIES AVERAGING MORE THAN 20 ON MOST STEEL FROM JAPAN EFFECTIVELY TAKING AWAY JAPANESE STEEL'S LARGEST FOREIGN MARKET THESE DAYS KIMITSU WORKS DOESN'T EVEN RANK AMONG THE 40 LOWESTCOST STEEL MILLS IN THE WORLD ACCORDING TO A PAINEWEBBER STUDY SAYS LOUIS L SCHORSCH DIRECTOR OF STEEL CONSULTING FOR MCKINSEY & CO YOU CAN MAKE A STRONG CASE THAT THEY'RE AT THE EDGE OF AN ABYSS THE DECLINE OF BIG STEEL IN JAPAN DOESN'T MEAN A RETURN TO GLORY FOR US OR EUROPEAN PRODUCERS INSTEAD IT UNDERSCORES A NEW REALITY FACING ALL STEELMAKERS BIG STEEL CAN'T SURVIVE IN ITS TRADITIONAL FORM EVEN AMONG LOWCOST MAKERS IN NATIONS LIKE SOUTH KOREA THE DECLINE IS PART OF A SHIFT IN MANY MANUFACTURING INDUSTRIES SUCH AS STEEL AUTOS AND MACHINERY LARGE HIGHVOLUME INTEGRATED PLANTS WITH DISJOINTED PRODUCTION LINES ARE GIVING WAY TO SMALL PLANTS WITH FASTER CHEAPER PRODUCTION METHODS THAT CAN ADJUST QUICKLY TO DEMAND VARIATIONS THE SHIFT IS PARTICULARLY PRONOUNCED IN THE STEEL BUSINESS WHERE LOWBUDGET MINIMILLS LIKE TOKYO STEEL'S OFTEN USING NEW TECHNOLOGIES PROMISE TO FLOOD THE MARKET WITH CHEAP BUT INCREASINGLY HIGHQUALITY PRODUCTS THE WAY OF MAKING STEEL IS CHANGING SAYS FRANCIS MER PRESIDENT OF FRANCE'S USINOR SACILOR SA THE WORLD'S SECOND LARGEST STEELMAKER IT'S QUITE SURE THAT THE LARGEST PART OF STEEL WILL BE PRODUCED IN SMALLER MILLS ALREADY 28 OF THE WORLD'S STEEL IS MADE IN ELECTRIC FURNACES THE HALLMARK OF MINIMILLS UP FROM 14 TWO DECADES AGO ACCORDING TO THE INTERNATIONAL IRON & STEEL INSTITUTE MINIMILLS WHICH ALREADY DOMINATE THE MARKET FOR STRUCTURAL STEEL ARE NOW CHALLENGING THE LAST STRONGHOLD OF OLDSTYLE MILLS AND THE BIGGEST STEEL MARKET THE ONE FOR SHEET AND PLATE STEEL AND THE PROLIFERATION OF MINIMILLS COMES AT A TIME WHEN THE INDUSTRY IS PLAGUED BY EXCESS CAPACITY AND FLAT DEMAND WORLD STEEL CONSUMPTION GREW AT AN ANNUAL RATE OF ONLY 07 IN THE 1980S AND ANNUAL GROWTH IN THE 1990S IS EXPECTED TO BE NO MORE THAN 11 THE NEW CAPACITY IS GOOD NEWS FOR STEEL BUYERS WHO CAN COUNT ON THE OVERSUPPLY TO HOLD DOWN PRICES OVER THE LONG RUN BUT FOR TRADITIONAL INTEGRATED MAKERS IN THE US THE TRANSITION MEANS MORE OF THE DECLINE AND CUTBACKS OF THE PAST DECADE DESPITE SPENDING TENS OF BILLIONS OF DOLLARS IN THE 1980S TO MAKE THEMSELVES MORE EFFICIENT THAN INTEGRATED MILLS OVERSEAS AMERICAN STEELMAKERS STILL CAN'T MAKE MONEY THE SITUATION IS NO BETTER IN EUROPE WHERE MANY INEFFICIENT STEELMAKERS ARE PROPPED UP BY THEIR GOVERNMENTS BIG STEELMAKERS EVERYWHERE ARE FINDING THAT THE ECONOMIES OF SCALE THAT HELPED THEM PREVAIL SINCE ANDREW CARNEGIE'S DAY NO LONGER FAVOR THEM THEIR PLANTS COST BILLIONS TO BUILD AND TENS OF MILLIONS ANNUALLY TO MAINTAIN THEY MAKE STEEL IN HUGE QUANTITIES MOSTLY USING IRON ORE AND A FORM OF COAL CALLED COKE THEIR MULTISTEP PROCESS IN WHICH DIFFERENT PARTS OF THE PLANT ARE SOMETIMES MILES APART TAKES DAYS OR WEEKS TO PRODUCE FINISHED STEEL MINIMILLS BY CONTRAST GENERALLY FEED SCRAP OR SPECIALLY PROCESSED IRON INTO ELECTRIC FURNACES TO MAKE MOLTEN STEEL THAT IS USUALLY CONVERTED TO FINISHED FORM IN MINUTES THEY REQUIRE FEWER EMPLOYEES AND A MUCH SMALLER INVESTMENT THAN TRADITIONAL COKEFIRED PLANTS AND THEY PRODUCE LESS AIR AND WATER POLLUTION TODAY US MINIMILL OPERATORS SUCH AS NUCOR CORP AND CHAPARRAL STEEL CO RUN FOUR OF THE WORLD'S FIVE LOWESTCOST STEEL PLANTS ACCORDING TO THE PAINEWEBBER STUDY NUCOR'S PRODUCTION IS ALREADY OUTPACING OUTPUT FROM SOME OLDLINE STEELMAKERS SUCH AS ARMCO INC AND INLAND STEEL INDUSTRIES INC AND SOME STEEL EXPERTS EXPECT NUCOR TO REPLACE USX CORP'S US STEEL AS THE NATION'S LARGEST PRODUCER BY DECADE'S END RESPONDING TO THE THREAT OPERATORS OF BIG MILLS ARE TRYING TO MAKE THEIR PLANTS MORE LIKE MINIMILLS BLURRING SOME OF THE DISTINCTIONS SOME ESPECIALLY IN FRANCE AND JAPAN OPERATE ELECTRICFURNACE MILLS IN ADDITION TO THEIR INTEGRATED PLANTS OTHERS ARE STUDYING WAYS TO MAKE STEEL WITHOUT COKE OVENS AND BLAST FURNACES COMPANIES LIKE THYSSEN AG IN GERMANY AND USX IN THE US PLAN TO BUILD MINIMILLS OF THEIR OWN WE HAVE TO FIGURE OUT WHERE WE CAN USE THE ORGANIZATION AND TECHNIQUE OF MINIMILLS AND REORGANIZE OUR MILLS IN THE SAME WAY SAYS EKKEHARD SCHULZ CHAIRMAN OF THYSSEN'S THYSSEN STAHL UNIT IF THE INTEGRATEDS TAKE THIS CHANCE TO RESTRUCTURE THEY CAN KEEP THEIR POSITION IF NOT NEWCOMERS WILL TAKE IT UNLIKE NIMBLER MINIMILL OPERATORS HOWEVER MANY OLDLINE MAKERS REMAIN SADDLED WITH SLOWMOVING CORPORATE CULTURES BLOATED STAFFS AND HUGE INVESTMENTS IN INCREASINGLY OUTDATED MILLS RESTRUCTURING WOULD HAVE BEEN UNIMAGINABLE TO JAPANESE STEELMAKERS IN THE LATE 1970S AND EARLY 1980S THE JAPANESE GOVERNMENT WHICH CALLED STEEL THE MOTHER OF INDUSTRY HAD NURSED THE STEEL BUSINESS THROUGH THREE DECADES OF EXPLOSIVE GROWTH IN 1980 THE JAPANESE PRODUCED 111 MILLION TONS OF CRUDE STEEL A FIVEFOLD INCREASE OVER 1960 MAKING JAPAN THE LARGEST STEELMAKING COUNTRY IN THE NONCOMMUNIST WORLD BUT AS IN THE US SUCCESS PLANTED SEEDS OF DECLINE JAPANESE STEELWORKERS' WAGES MOVED UP SHARPLY MAKING THEM CLOSE TO US WAGES AND ABOUT TRIPLE THOSE IN SOUTH KOREA PRODUCTIVITY STAGNATED AS THE INDUSTRY RAISED EMPLOYMENT 6 DURING THE 1980S WITHOUT HIGHER OUTPUT JAPAN'S AUTO MAKERS AND OTHER STEELCONSUMING MANUFACTURERS MOVED SOME PRODUCTION TO OTHER COUNTRIES WHILE LARGELY UNSUCCESSFUL JAPANESE STEEL VENTURES IN THE US SUCKED CASH FROM THEIR PARENT COMPANIES THEN THE YEN GAINED IN VALUE IN THE LATE 1980S MAKING JAPANESE STEEL EXPENSIVE JAPAN'S STEEL EXPORTS IN 1991 WERE 46 LESS THAN IN 1985 WHILE IMPORTS MORE THAN TRIPLED JAPAN'S TRADE SURPLUS IN STEEL SHRANK TO FOUR MILLION TONS FROM 29 MILLION IN THAT PERIOD JAPANESE STEELMAKERS COULD AFFORD TO IGNORE THESE PROBLEMS IN THE LATE 1980S WHEN THEIR ECONOMY FUELED BY BOOMS IN BUILDING CAPITAL SPENDING AND PUBLICWORKS PROJECTS DEMANDED ALLOUT PRODUCTION BUT NOW THEY FIND THEMSELVES WITH EXCESS CAPACITY AND SHRINKING MARKETS NIPPON STEEL ALONE HAS 14 MILLION TONS OF EXCESS ANNUAL CAPACITY THE INTERNATIONAL IRON & STEEL INSTITUTE ESTIMATES THAT JAPAN'S STEEL DEMAND IN 1992 FELL TO NEAR ITS LOWEST LEVEL IN 20 YEARS AND IT ISN'T EXPECTED TO SHOW MUCH GROWTH THIS DECADE SOME STEEL EXECUTIVES IN JAPAN BRISTLE AT THE SUGGESTION THAT A DECLINE IS COMING THERE'S NO ANALOGY BETWEEN THE JAPANESE STEEL INDUSTRY AND THE US INDUSTRY 15 YEARS AGO SAYS HIROSHI SAITO PRESIDENT OF NIPPON STEEL JAPAN WILL REMAIN ON TOP OF THE WORLD IF NOT IN TONNAGE THEN AT LEAST IN QUALITY TRUE JAPAN HAS MORE MODERN EQUIPMENT AND HIGHER QUALITY STEEL THAN THE US HAD BEFORE IT WAS FORCED TO SHUTTER DOZENS OF PLANTS AND LAY OFF THOUSANDS OF WORKERS JAPAN'S STEELMAKERS ALSO USE A HIGH PROPORTION OF CONTRACT WORKERS AND HAVE VAST SUBSIDIARIES INTO WHICH TO MOVE EXCESS WORKERS SO ADJUSTMENT PROMISES TO BE LESS PAINFUL AND JAPAN'S BIG STEELMAKERS ARE CUSHIONED BECAUSE MANY HAVE EQUITY INTERESTS IN MINIMILLS BUT CLEARLY THE BIG JAPANESE MILLS LIKE US MILLS BEFORE THEM HAVE PROBLEMS AT HOME AND ABROAD ONE BIG HEADACHE FOR THEM IS POHANG IRON & STEEL CO A 20YEAROLD KOREAN STEELMAKER KNOWN AS POSCO WHICH HAS RAPIDLY BUILT ITSELF INTO THE THIRD LARGEST MILL IN THE WORLD JAPANESE MONEY AND TECHNOLOGY HELPED BUILD POSCO WHICH MIMICS JAPAN'S FACILITIES IN EVERYTHING FROM ITS EQUIPMENT TO ITS SHRUBBERY BUT WITH NEW EQUIPMENT AND LABOR COSTS OF ABOUT 11 AN HOUR POSCO'S TWO MILLS PRODUCE STEEL THAT IS FAR CHEAPER THAN BIG JAPANESE MILLS CAN MAKE HELPING TO BOOST KOREAN EXPORTS TO JAPAN TO 34 MILLION TONS LAST YEAR FROM 21 MILLION IN 1987 KOREA IS NOW THE LARGEST STEEL EXPORTER TO JAPAN THE SAME RELATIONSHIP THAT USED TO EXIST BETWEEN THE US AND JAPAN NOW EXISTS BETWEEN JAPAN AND KOREA SAYS MEGUMU SAKUMA A KAWASAKI STEEL MANAGING DIRECTOR ULTIMATELY THOUGH THE BIGGEST THREAT TO BIG JAPANESE MILLS AND EVEN TO POSCO ISN'T FROM FELLOW INTEGRATED MILLS BUT FROM MINIMILLS IN JAPAN TOKYO STEEL FOLLOWING THE EXAMPLE OF NUCOR IN THE US IS LEADING THE CHARGE THE JAPANESE STEEL INDUSTRY IS LOSING ITS COMPETITIVENESS SAYS MASANARI IKETANI TOKYO STEEL'S 47YEAROLD PRESIDENT AND ITS FOUNDER'S SON WE ARE FACING A NEW AGE OF STEELMAKING FUTURE STEEL MILLS WILL BE BUILT VERY COMPACT INTEGRATED STEEL ITSELF HAS TO BE CHANGED MR IKETANI IS HASTENING THAT CHANGE TOKYO STEEL WHICH DOESN'T RUN ANY INTEGRATED MILLS HAS HEAVILY UNDERCUT THE PRICES OF SHEET STEEL FROM JAPAN'S BIG MILLS SINCE APRIL WHEN IT OPENED A 500 MILLION MILL THAT HAS BEEN SO SUCCESSFUL THE COMPANY PLANS TO EXPAND IT AND BUILD TWO MORE MINIMILLS TWO OTHER SMALL JAPANESE STEELMAKERS KYOEI STEEL CORP AND TOA STEEL CO HAVE RECENTLY ANNOUNCED PLANS TO BUILD NEW MINIMILLS AS WELL AMONG TOKYO STEEL'S ADVANTAGES IT NEEDS ONLY ONE MANHOUR OF LABOR FOR EACH TON OF STEEL COMPARED WITH THE FIVE MANHOURS NEEDED BY INTEGRATED JAPANESE MILLS TOKYO STEEL WITH SALES OF 16 BILLION IN ITS LATEST FISCAL YEAR IS VIRTUALLY DEBTFREE AND RUNS WITH A BAREBONES STYLE NO CHAUFFEURS NO COMPANY PLANE COACHCLASS AIR FARES FOR TOP EXECUTIVES ITS HEADQUARTERS AND SALES STAFF NUMBERS ONLY 60 BY CONTRAST NIPPON STEEL WITH SALES OF 198 BILLION IN ITS LATEST FISCAL YEAR HAS A HEADQUARTERS AND SALES STAFF OF 7838 AND HAD 56 BILLION IN DEBT AT THE END OF ITS LATEST FISCAL YEAR THE CONTRAST IN STYLES WAS CLEAR IN OCTOBER WHEN NIPPON STEEL AND OTHER OLDLINE JAPANESE STEELMAKERS FETED THEIR INTERNATIONAL COUNTERPARTS AT TOKYO'S POSH HOTEL OKURA DURING AN INTERNATIONAL IRON & STEEL INSTITUTE CONFERENCE TOKYO STEEL'S MR IKETANI SHUNNED THE GROUP WHICH HE CALLS A VERY EXPENSIVE CLUB INSTEAD HE STAYED AT HIS DOWNTOWN OFFICE THE WORLD IS CARRYING AN OVERCAPACITY OF STEELMAKING AND ONLY A LIMITED NUMBER OF STEEL MILLS WILL BE COMPETITIVE ENOUGH TO SURVIVE HE SAYS WITH A GRIN A RENAISSANCE IS NECESSARY FROM TIME TO TIME THAT TIME IS NOW EVEN LOWCOST INTEGRATED MILLS SUCH AS POSCO'S HAVE TROUBLE MATCHING TOKYO STEEL'S ROCKBOTTOM COSTS POSCO SPENDS TENS OF MILLIONS OF DOLLARS EACH YEAR ON BENEFITS FOR WORKERS SUCH AS SCHOOLS INTERESTFREE MORTGAGES AND FREE CONCERTS ITS WAGE GROWTH HAS EXCEEDED PRODUCTIVITY GAINS IN JUNE IT ADDED A FOURTH SHIFT TO GIVE WORKERS MORE TIME OFF INCREASING LABOR COSTS BY A THIRD BUT NOW GROWING COSTS HAVE LED POSCO TO PLAN STAFF CUTS OF 20 BY 1996 THE KOREAN COMPANY IS ALSO TRYING TO MAKE SOME OF ITS OPERATIONS WORK MORE LIKE MINIMILLS IT HAS ORDERED EQUIPMENT THAT MAKES STEEL WITHOUT COKE OVENS AND BLAST FURNACES AND IT EXPECTS TO BEGIN MAKING COMMERCIAL SHEET STEEL WITHIN THREE YEARS FROM MOLTEN METAL WITH THE CONTINUOUS PROCESS MINIMILLS USE IF WE ARE SUCCESSFUL IN THOSE TWO AREAS SAYS PARK TAE JOON POSCO'S FOUNDER AND RETIRED CHAIRMAN INTEGRATED STEEL MILLS WILL RAPIDLY GAIN COMPETITIVENESS NONETHELESS POSCO IS DIVERSIFYING AND HOPES TO GET 30 OF ITS SALES FROM NEW BUSINESSES LIKE CELLULAR PHONES BY THE YEAR 2000 BIG STEELMAKERS IN JAPAN TOO HAVE BEEN LOOKING FOR WAYS TO CHANGE THEY ARE WORKING ON DIRECT STEELMAKING TECHNIQUES TO DO AWAY WITH COKE OVENS AND BLAST FURNACES KAWASAKI STEEL EXPECTS TO SPEND 12 BILLION OVERHAULING EQUIPMENT AT ONE OF ITS MAIN MILLS TO MAKE IT FUNCTION MORE LIKE A MINIMILL BUT AS THEY STRUGGLE TO ADJUST THE JAPANESE ARE ALSO REALIZING THAT IT'S TIME FOR BIG STEEL TO SHRINK NIPPON STEEL HAS CLOSED THREE OF ITS 13 BLAST FURNACES AND PLANS TO RID ITSELF OF TWO MORE KOBE STEEL LTD JAPAN'S FIFTHLARGEST PRODUCER PLANS TO REDUCE STEEL SALES TO 25 OF ITS TOTAL REVENUE BY THE YEAR 2000 DOWN FROM THE CURRENT 50 IT MAY EVEN REMOVE STEEL FROM ITS NAME THESE ARE NOT THE ORDINARY UPS AND DOWNS SAYS SOKICHI KAMETAKA KOBE'S CHIEF EXECUTIVE WE HAVE TO REPOSITION AND RESTRUCTURE OURSELVES KOBE STEEL LTD PREDICTS THAT BY THE YEAR 2000 ITS STEEL BUSINESS WILL PROVIDE 29 OF THE COMPANY'S REVENUE THE FIGURE WAS INCORRECTLY REPORTED AS 25 IN A PAGE ONE ARTICLE TUESDAY 9302050079 930205 POLITICS & POLICY CLINTON BACKS PLAN TO CUT CAPITALGAINS TAXES AN INCH BUT LOBBYISTS SEE CHANCE TO GRAB A MILE BY RICK WARTZMAN AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON IS OFFERING TO CRACK OPEN THE DOOR FOR A CAPITALGAINS TAX CUT HIS CHALLENGE WILL BE TO KEEP IT FROM GETTING KNOCKED OFF ITS HINGES MR CLINTON'S PLAN WHICH IS EXPECTED TO BE PART OF THE ECONOMIC STIMULUS PACKAGE HE IS TO UNVEIL FEB 17 WOULD HALVE THE CAPITALGAINS TAX RATE FOR INVESTORS WHO LEAVE THEIR MONEY IN SMALL BUSINESSES FOR AT LEAST FIVE YEARS THE PRESIDENT'S PROPOSAL BASED ON LEGISLATION PUT TOGETHER BY DEMOCRATIC SEN DALE BUMPERS OF ARKANSAS WOULD ALSO WAIVE THE TAX ALTOGETHER FOR THOSE WHO LEAVE THEIR MONEY IN THE SMALLEST FIRMS FOR 10 YEARS THE CURRENT MAXIMUM TAX RATE ON CAPITAL GAINS IS 28 BUT THE PRESIDENT WHOSE AIM IS TO SPUR ENTREPRENEURSHIP MAY FIND IT DIFFICULT TO KEEP THE PLAN AS NARROWLY FOCUSED AS HE WANTS TO I HAVE NO FAITH THAT A MODEST CIRCUMSCRIBED PROVISION WILL REMAIN THAT WAY SAYS HENRY AARON THE DIRECTOR OF ECONOMIC STUDIES AT THE BROOKINGS INSTITUTION AND AN AVID OPPONENT OF CUTTING THE CAPITALGAINS TAX SPECIALINTEREST GROUPS WILL MARCH BEFORE CONGRESSIONAL COMMITTEES AND PRETTY SOON THE PLAN IS EXPANDED A LITTLE BIT HERE AND A LITTLE BIT THERE BY EMBRACING THE BUMPERS PLAN THE PRESIDENT CERTAINLY WILL OPEN THE DEBATE ON CAPITAL GAINS ACKNOWLEDGES SENATE MAJORITY LEADER GEORGE MITCHELL WHO SITS ON THE TAXWRITING FINANCE COMMITTEE LOBBYISTS LIKE MARK BLOOMFIELD PRESIDENT OF THE BIG BUSINESSBACKED AMERICAN COUNCIL FOR CAPITAL FORMATION ARE SALIVATING OVER THE PROSPECT MR BLOOMFIELD FOUND HIMSELF ON THE WINNING SIDE OF THE ISSUE IN 1978 WHEN CAPITAL GAINS RATES WERE CUT AND ON THE LOSING SIDE IN 1986 WHEN THEY WERE RAISED AGAIN HE SAYS HE SEES SEVERAL REASONS WHY CONGRESS MAY BE RECEPTIVE TO A MORE SWEEPING CUT THIS YEAR FOR ONE THING IF LAWMAKERS ALREADY HAVE BOUGHT INTO THE VIEW THAT A LIMITED CUT WILL HELP SPUR ECONOMIC GROWTH WOULDN'T IT MAKE SENSE TO EXTEND SUCH TREATMENT TO ALL SECTORS AND NOT JUST SMALL BUSINESSES I WOULD HOPE THE SECURITIES INDUSTRY OR THE TIMBER INDUSTRY WILL SAY WHAT ABOUT US' ASSERTS MR BLOOMFIELD WHO IS KNOWN AROUND CAPITOL HILL AS MR CAPITAL GAINS SEVEN YEARS AGO SPECIALINTEREST GROUPS WERE THE LOSERS IN A GRAND COMPROMISE THAT SAW CONGRESS ROLL BACK MANY TAX BREAKS AND INCREASE CAPITALGAINS TAXES IN RETURN FOR SHARPLY REDUCING INDIVIDUAL INCOMETAX RATES WITH MR CLINTON PLEDGING TO RAISE THE TOP TAX RATE TO 36 AND INTRODUCE A CAPITALGAINS CUT THE ENTIRE UNDERPINNINGS OF THE 1986 TAX REFORM ACT COULD UNRAVEL BUT THERE ARE TREMENDOUS PROBLEMS WITH WIDENING THE BUMPERS PLAN ONE IS THE ISSUE OF FAIRNESS AN IMPORTANT CONSIDERATION FOR A PRESIDENT WHOSE CAMPAIGN CALLED FOR SHIFTING THE TAX BURDEN AWAY FROM THE MIDDLE CLASS AND ONTO THE RICH IT'S QUITE CLEAR THAT THE DISTRIBUTION OF ANY KIND OF CAPITALGAINS EXCLUSION IS VERY MUCH TILTED TO HIGHERINCOME PEOPLE SAYS DANIEL HALPERIN A GEORGETOWN UNIVERSITY LAW PROFESSOR WHO WAS A SENIOR TREASURY TAX OFFICIAL UNDER PRESIDENT CARTER EVEN AFTER RAISING THE TOP TAX RATE ON UPPERINCOME INDIVIDUALS IT WILL BE DIFFICULT TO MITIGATE THE EFFECTS OF A BROADBASED CAPITALGAINS CUT ANOTHER HUGE HURDLE IS COST THE ORIGINAL BUMPERS PROPOSAL AT LEAST WHEN VIEWED WITHIN THE OFFICIAL BUDGET FRAMEWORK CARRIES A RELATIVELY MODEST PRICE OF 900 MILLION OVER FIVE YEARS EXTENDING A CAPITALGAINS TAX CUT TO INCLUDE INVESTMENTS IN SAY LAND OR LARGE COMPANIES OR TO TAX ONLY THOSE GAINS IN EXCESS OF INFLATION WOULD SWELL THAT FIGURE BY BILLIONS ACCORDING TO SOME ESTIMATES AND THAT'S AN ESPECIALLY DIFFICULT PROPOSITION WITH A 300 BILLION BUDGET DEFICIT THAT BOTH PARTIES CLAIM TO BE COMMITTED TO SHRINKING MR BLOOMFIELD BEGAN ASSEMBLING NEW DATA THIS WEEK THAT ATTEMPTS TO SHOW HOW CUTTING CAPITAL GAINS TAXES ACTUALLY WOULD RAISE MONEY FOR THE TREASURY OVER THE LONG RUN BY INDUCING MORE PEOPLE TO UNLOCK THEIR ASSETS AND SELL THEM OFF IN THE PAST HOWEVER THE OFFICIAL SCOREKEEPERS AT THE JOINT TAX COMMITTEE HAVEN'T ACCEPTED THIS NOTION AND THEY'RE NOT LIKELY TO THIS TIME AROUND THOSE WHO WANT A BROADER PLAN ARE GOING TO HAVE TO COME UP WITH A WAY TO PAY FOR IT SAYS ONE CONGRESSIONAL AIDE AND THAT'S AN INSUPERABLE PROCEDURAL RESTRAINT NONETHELESS THERE IS ALREADY PRESSURE BUILDING TO GIVE IT A TRY PARTICULARLY IN THE SENATE WHERE THERE IS A LEGION OF CONSERVATIVE DEMOCRATS SEN SAM NUNN OF GEORGIA FOR EXAMPLE SAYS HE'S BEHIND THE BUMPERS PLAN BUT I'M FOR MORE I'LL BE WORKING FOR A BROADER CAPITALGAINS TAX CUT SEN DAVID BOREN OF OKLAHOMA A MEMBER OF THE FINANCE PANEL SAYS HE TOO WOULD LIKE TO BROADEN THE CAPITAL GAINS TAX CUT SEN JOHN BREAUX OF LOUISIANA WILL BE ANOTHER CRUCIAL VOTE ON THE COMMITTEE SOME TAX EXPERTS SUGGEST THAT ONE POSSIBLE ALBEIT CONTROVERSIAL WAY TO LOWER CAPITALGAINS TAXES ACROSS THE BOARD WOULD BE TO PAY FOR THE CUT BY TAXING THE APPRECIATION ON PROPERTY WHEN A PERSON DIES UNDER CURRENT LAW CAPITAL GAINS HELD UNTIL DEATH AREN'T TAXED BUT MR CLINTON HAS SAID HE'S CONSIDERING CHANGING THAT WITHIN THE HOUSE HOWEVER THERE IS STRONG RESISTANCE TO A BROADER CAPITALGAINS TAX CUT I THINK WE HAVE THE VOTES TO KEEP THE BUMPERS PLAN INTACT SAYS REP PETER HOAGLAND D NEB WHO WAS AN EARLY SPONSOR OF THE MEASURE AND HAS MOVED ONTO THE HOUSE WAYS AND MEANS COMMITTEE ALONGSIDE ROBERT MATSUI D CALIF ANOTHER LEADING SPONSOR THE BUSINESS COMMUNITY ITSELF IS SPLIT OVER HOW BROAD A CAPITALGAINS TAX CUT SHOULD BE TRADE GROUPS SUCH AS THE AMERICAN ELECTRONICS ASSOCIATION AND THE NATIONAL VENTURE CAPITAL ASSOCIATION FOR YEARS HAD BEEN PART OF A COALITION THAT WAS URGING AN ACROSSTHEBOARD REDUCTION IN CAPITALGAINS TAXES BUT IN 1990 THEY BEGAN PURSUING A DIFFERENT TACTIC CONVINCED THAT IT HAD BECOME POLITICALLY UNREALISTIC TO KEEP CAMPAIGNING FOR CAPITALGAINS RELIEF THAT WAS SO WIDE AND DEEP THE PRIMARY AIM OF THE BUMPERS PLAN IS TO FOSTER THE DEVELOPMENT OF SMALL FIRMS THAT HAVE TROUBLE ATTRACTING INVESTMENT CAPITAL WHEN THE PRESIDENT TALKS ABOUT ECONOMIC STIMULUS THAT'S THE WHOLE RAISON D'ETRE FOR THIS PROPOSAL SAYS SEN BUMPERS THE AMERICAN ENTERPRISE INSTITUTE'S DAVID BRADFORD A FORMER WHITE HOUSE ECONOMIST UNDER PRESIDENT BUSH SAYS THAT ONE BENEFIT OF THE TAX PLAN IS THAT IT WOULD ENCOURAGE ENTREPRENEURS TO SELL THEIR INTEREST IN STARTUP VENTURES AND MOVE ON TO NEW CREATIVE PURSUITS WHILE MORE EXPERIENCED MANAGERS TAKE OVER THE BUSINESS THE BUMPERS PLAN ISN'T A CRAZY IDEA MR BRADFORD SAYS MAIN FEATURES OF THE PROPOSAL INTRODUCED BY SEN DALE BUMPERS AND EMBRACED BY PRESIDENT CLINTON TO SPUR INVESTMENT IN SMALL BUSINESSES BY CUTTING THE TAX RATE ON CAPITAL GAINS THE PLAN HALVES THE CAPITALGAINS TAX RATE FOR INVESTORS WHO BUY STOCK DIRECTLY FROM A COMPANY THAT HAS RAISED 100 MILLION OR LESS FROM EQUITY AND DEBT MARKETS AS LONG AS THE INVESTOR HOLDS ONTO THAT STOCK FOR AT LEAST FIVE YEARS THE PLAN APPLIES TO COMMON AND PREFFERED STOCK SUBCHAPTER S AND REGULAR CORPORATIONS AND INDIVIDUAL AND CORPORATE TAXPAYERS FOR INVESTMENTS IN COMPANIES THAT HAVE RAISED 5 MILLION OR LESS THE CAPITALGAINS RATE CAN GO TO ZERO IF THE STOCK IS HELD FOR 10 OR MORE YEARS IN ADDITION THE ALTERNATIVE MINIMUM TAX WON'T BE APPLIED TO THESE TAX BENEFITS COMPANIES MAY ISSUE MORE THAN ONE ROUND OF QUALIFIED STOCK AS LONG AS THE TOTAL DOESN'T EXCEED THE LIMITS THE PLAN APPLIES TO NEW INVESTMENTS IN BOTH STARTUP VENTURES AND IN EXPANDING OLDER COMPANIES THE INCENTIVE WON'T BE RETROACTIVE TO INVESTMENTS MADE BEFORE THE EFFECTIVE DATE OF THE PLAN 9302050078 930205 BUSINESS BRIEF CPC INTERNATIONAL INC ACCOUNTING CHANGE CITED AS 4THPERIOD NET FELL 36 CPC INTERNATIONAL INC REPORTED A 36 DROP IN FOURTHQUARTER EARNINGS LARGELY ON AN ACCOUNTING CHANGE AND AN ENVIRONMENTAL CHARGE RELATED TO DISCONTINUED OPERATIONS BASED IN ENGLEWOOD CLIFFS NJ THE PACKAGED FOODS AND CORN REFINING CONCERN POSTED NET INCOME OF 708 MILLION OR 46 CENTS A SHARE COMPARED WITH 1101 MILLION OR 72 CENTS A SHARE A YEAR EARLIER CPC ATTRIBUTED THE DECLINE TO THE ADOPTION OF NEW ACCOUNTING STANDARDS FOR CERTAIN RETIREMENT BENEFITS AND INCOME TAXES AS WELL AS A 468 MILLION CHARGE RELATED TO A DISCONTINUED CHEMICAL OPERATION EXCLUDING THESE UNUSUAL ITEMS NET WAS 1195 MILLION OR 78 CENTS A SHARE SALES ROSE 16 TO 18 BILLION IN THE YEAR EARNINGS FELL TO 2238 MILLION OR 141 A SHARE FROM 3727 MILLION OR 240 A SHARE SALES INCREASED 7 TO 66 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY AFTERNOON CPC SHARES WERE QUOTED AT 45875 DOWN 875 CENTS 9302050077 930205 POLITICS & POLICY WHITE HOUSE SEEKS TO CURB OMB'S HOLD ON RULES WITH MORE OPEN REVIEW PLAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS WORKING ON A REGULATORYREVIEW PLAN THAT WOULD SHARPLY REDUCE THE ABILITY OF THE OFFICE OF MANAGEMENT AND BUDGET TO HOLD UP REGULATIONS THE WHITE HOUSE PLAN IS A FOLLOWUP OF PRESIDENT CLINTON'S DECISION LAST MONTH TO KILL THE VICE PRESIDENT'S COUNCIL ON COMPETITIVENESS WHICH WORKED WITH OMB'S OFFICE OF INFORMATION AND REGULATORY AFFAIRS TO TRY TO BLOCK A HOST OF ENVIRONMENTAL RULES IT DEEMED EXCESSIVE UNDER THE OLD SYSTEM THE REGULATORY OFFICE WOULD CONDUCT DETAILED ANALYSES OF PROPOSALS AND RULES ISSUED BY FEDERAL AGENCIES TO SEE IF THEIR COSTS OUTWEIGHED THEIR BENEFITS IT WOULD OFTEN SEEK DETAILED CHANGES THE COMPETITIVENESS COUNCIL WOULD PROVIDE MUSCLE FOR THE OFFICE AND SOMETIMES SECRETLY HELP COMPANIES DEFEAT OR CHANGE AGENCY PROPOSALS THE WHITE HOUSE EXPECTS TO UNVEIL A FAR MORE OPEN SYSTEM EARLY IN THE SPRING SAID A SENIOR WHITE HOUSE AIDE A NUMBER OF OPTIONS ARE BEING DISCUSSED BUT THE PLAN WITH THE MOST SUPPORT SO FAR WOULD REDUCE THE REGULATORY OFFICE'S INFLUENCE BY HAVING IT COMMENT PUBLICLY ON AGENCY PROPOSALS EARLY IN THE REGULATORY PROCESS THE OFFICE'S COMMENTS WOULD THEN BE PLACED IN THE PUBLIC RECORD ALONG WITH THOSE OF OTHER INTERESTED PARTIES PRESIDENT CARTER TRIED A SIMILAR REGULATORYREVIEW PROCESS THE REGULATORY OFFICE STILL WOULD BE ABLE TO ASK AN AGENCY FOR CHANGES IN PROPOSALS SAID THE WHITE HOUSE OFFICIAL BUT WHEN THE AGENCY DISAGREED OMB DIRECTOR LEON PANETTA AND THE AGENCY HEAD WOULD TRY TO RESOLVE THE DISPUTE UNDER THE BUSH SYSTEM BUDGET DIRECTOR RICHARD DARMAN RARELY GOT INVOLVED WITH REGULATORY MATTERS IF OMB AND THE AGENCY STILL DISAGREED AFTER THE MEETING WITH MR PANETTA THE OFFICIAL SAID THE TWO AGENCIES WOULD APPEAL DIRECTLY TO PRESIDENT CLINTON SINCE NEITHER AGENCY WOULD WANT TO ENCUMBER MR CLINTON WITH SUCH DISPUTES IT WOULD BE A GREAT MOTIVATOR TO WORK THINGS OUT THE OFFICIAL SAID JEFFREY NESBIT A FORMER OFFICIAL AT THE COMPETITIVENESS COUNCIL CALLED THE SCHEME UNWORKABLE ONLY THE MOST BITTER REGULATORY DISPUTES DURING THE BUSH YEARS WERE APPEALED EVENTUALLY TO THE PRESIDENT DURING A FIGHT OVER LABELING BETWEEN THE FOOD AND DRUG ADMINISTRATION AND THE AGRICULTURE DEPARTMENT FOR INSTANCE PRESIDENT BUSH WAS CALLED ON TO CONSULT CALORIE CHARTS AND MCDONALD'S PLACE MATS TO RESOLVE THE DISPUTE HE SAID MR NESBIT WHO NOW IS A SPOKESMAN FOR CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE ADVOCACY GROUP SAID A VICE PRESIDENTIALREVIEW PANEL IS NECESSARY FOR ANY REGULATORY SCHEME THE WHITE HOUSE ALSO IS TRYING TO EXPAND THE WAY IN WHICH THE BENEFITS OF REGULATION ARE DETERMINED CURRENTLY THE EXPECTED COST OF A RULE IS USUALLY WEIGHED AGAINST THE NUMBER OF DEATHS OR INJURIES AVERTED BUT UNDER A NEW DEFINITION THE BENEFITS SIDE OF THE LEDGER WOULD ALSO INCLUDE SUCH THINGS AS HARM AVERTED TO THE ENVIRONMENT OR REDUCED DISCRIMINATION AGAINST HANDICAPPED PEOPLE IT WON'T BE AN ACCOUNTANT'S VIEW SAID THE OFFICIAL 9302050076 930205 FTC TO WEIGH ANTITRUST MOVE ON MICROSOFT BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION IN A MEETING THAT COULD HAVE A SWEEPING IMPACT ON THE COMPUTER INDUSTRY FINALLY PLANS TO WEIGH POSSIBLE ANTITRUST ACTIONS AGAINST MICROSOFT CORP THE CLOSEDDOOR MEETING WOULD BE THE LATEST CHAPTER IN A 2 1/2YEAR FTC INVESTIGATION BUT THE DELIBERATIONS WILL BE STRICTLY CONFIDENTIAL EVEN THE NAME OF THE COMMISSIONER WHO WILL LEAD THE DISCUSSION IS SECRET THE COMMISSION HASN'T EVEN CONFIRMED THAT THE SESSION WILL DEAL WITH MICROSOFT A REDMOND WASH SOFTWARE CONCERN MICROSOFT CHAIRMAN BILL GATES MET WITH THE COMMISSIONERS THIS WEEK APPARENTLY IN AN ATTEMPT TO FORESTALL ANY ACTION AGAINST HIS COMPANY ACCORDING TO PEOPLE CLOSE TO THE CASE A SPOKESWOMAN FOR MR GATES WOULDN'T COMMENT ON THE MEETING SO FAR NO SETTLEMENT HAS BEEN REACHED BETWEEN THE FTC AND THE COMPANY WHICH EARNED 11 BILLION IN THE YEAR ENDED JUNE 30 THREE OF MICROSOFT'S PRINCIPAL RIVALS NOVELL INC LOTUS DEVELOPMENT CORP AND BORLAND INTERNATIONAL INC ALSO MET WITH FTC COMMISSIONERS THIS WEEK EXECUTIVES FAMILIAR WITH THE MEETINGS SAID ONLY FOUR OF THE FIVE MEMBERS OF THE FTC TWO REPUBLICANS ONE DEMOCRAT AND ONE INDEPENDENT WILL PARTICIPATE IN TODAY'S SESSION REPUBLICAN ROSCOE STAREK HAS RECUSED HIMSELF APPARENTLY BECAUSE HE HAS A FINANCIAL CONFLICT OF INTEREST THREE VOTES ARE NEEDED TO TAKE ACTION UNLESS THE COMMISSION DECIDES TO DROP THE CHARGES ITS ACTION WON'T BE THE FINAL WORD THE COMMISSIONERS CAN'T FORCE MICROSOFT TO DO ANYTHING WITHOUT FIRST GOING THROUGH ADMINISTRATIVE OR COURT LITIGATION THE COMMISSIONERS COULD TAKE ACTION JUST ON CHARGES THAT MICROSOFT ABUSES ITS DOMINANT POSITION IN DOS WHICH IS A PROGRAM THAT CONTROLS THE BASIC FUNCTIONS OF VIRTUALLY EVERY PERSONAL COMPUTER THE COMMISSIONERS ALSO COULD CONTINUE TO INVESTIGATE OTHER CHARGES AGAINST MICROSOFT SUCH AS WHETHER THE COMPANY'S APPLICATIONS SALES HAVE BENEFITED UNFAIRLY FROM MICROSOFT'S SAY OVER DOS AND A RELATED PROGRAM CALLED WINDOWS THE COMPANY HAS BEEN ACCUSED OF ENGAGING IN A VARIETY OF PRACTICES TO CLOSE THE MARKET FOR OPERATING SYSTEMS AND APPLICATIONS FROM OTHER COMPANIES SPECIFICALLY COMPETITORS SAY MICROSOFT GIVES HUGE DOS DISCOUNTS TO PERSONALCOMPUTER MAKERS THAT PAY IT A ROYALTY FOR EVERY MACHINE SOLD LINKS SALES OF APPLICATIONS SOFTWARE SUCH AS WORD PROCESSING TO SALES OF DOS AN ARRANGEMENT CRITICS CALL AN ILLEGAL TIEIN FAVORS ITS OWN APPLICATIONS SOFTWARE DIVISIONS BY PROVIDING THEM WITH DOS INFORMATION NOT PROVIDED TO COMPETITORS THAT ALSO ARE DEPENDENT ON DOS AND FREEZES THE MARKET BY ANNOUNCING PRODUCTS WELL BEFORE THE RELEASE DATE IN A FASHION THAT HINDERS THE ABILITY OF COMPETITORS TO SELL SIMILAR PRODUCTS IF THE COMMISSIONERS DECIDE TO TAKE ACTION THEY COULD SEEK ADMINISTRATIVE SANCTIONS OR A FEDERAL COURT INJUNCTION STAFF LAWYERS HAVE RECOMMENDED THE LATTER COURSE IF GRANTED BY FEDERAL COURT A PRELIMINARY INJUNCTION COULD REQUIRE MICROSOFT TO HALT CERTAIN BUSINESS PRACTICES IMMEDIATELY THE COMMISSION THEN COULD PURSUE ADMINISTRATIVE REMEDIES OR A PERMANENT COURT BAN ON PARTICULAR MICROSOFT ACTIVITIES SEEKING ADMINISTRATIVE SANCTIONS WOULD BE MORE TIMECONSUMING TO USE THIS ROUTE THE COMMISSION FIRST WOULD ISSUE A COMPLAINT AN ADMINISTRATIVE LAW JUDGE THEN WOULD CONSIDER ARGUMENTS FROM THE FTC STAFF AND THE COMPANY A DECISION AGAINST MICROSOFT COULD BE APPEALED BACK TO THE COMMISSIONERS AND SUBSEQUENTLY TO THE US COURT OF APPEALS THE COMMISSIONERS MAY DECIDE NO ACTION NEEDS TO BE TAKEN THE COMMISSION'S ROLE AT THIS POINT IS TO FIND IF THERE IS REASON TO BELIEVE THAT THE LAW HAS BEEN VIOLATED SAID FORMER COMPETITION BUREAU DIRECTOR KEVIN ARQUIT WHO DESCRIBED THE GENERAL PROCESS IF THE COMMISSION DOES NOT FIND REASON TO BELIEVE THERE HAS BEEN A VIOLATION OF LAW IT SHUTS DOWN THE INVESTIGATION TODAY'S MEETING PROBABLY WILL BE A FORUM OF VIGOROUS DISCUSSION NOT AN OCCASION TO RUBBERSTAMP DECISIONS MADE BY THE STAFF DURING SUCH MEETINGS COMMISSIONERS SIT ON ONE SIDE OF A LARGE TABLE THEY OFTEN PEPPER WITH QUESTIONS STAFF MEMBERS SITTING ON THE OTHER SIDE THE STAFF GETS RAKED OVER THE COALS ABOUT THIS THAT OR THE OTHER THING SAID ONE STAFF MEMBER SOMETIMES YOU HAVE TO TAKE A NUMBER TO BE HEARD COMPLAINTS ABOUT MICROSOFT'S BUSINESS PRACTICES CONTINUE TO SURFACE JUST LAST WEEK STAC ELECTRONICS CARLSBAD CALIF FILED A PATENTINFRINGEMENT LAWSUIT AGAINST MICROSOFT AS PART OF THE CLAIM STAC CHARGED THAT MICROSOFT DEVELOPED COMPETING DATACOMPRESSION SOFTWARE AFTER STAC REFUSED TO LICENSE TO MICROSOFT FOR FREE THE GUTS OF ITS OWN PRODUCT MICROSOFT WANTS SUCH SOFTWARE IN ITS NEW VERSION OF DOS EXPECTED TO BE RELEASED IN LATE MARCH OR EARLY APRIL MICROSOFT HASN'T YET RESPONDED TO THE LAWSUIT BUT THE CHARGES ECHO COMPLAINTS BY OTHER COMPANIES THAT MICROSOFT FREQUENTLY INSISTS ON THE RIGHTS TO COMPUTER PROGRAMS FROM OTHERS FOR FREE LAST MONTH NOVELL CHARGED THAT SOME OF ITS CODE ENDED UP IN MICROSOFT'S NEW ACCESS DATABASE WITHOUT NOVELL'S AUTHORIZATION MICROSOFT DISPUTES THE CLAIM SAYING NOVELL GAVE IT PERMISSION TO USE THE CODE BUT MICROSOFT SINCE HAS PULLED THE CODE FROM THE PRODUCT BECAUSE OF THIS AND OTHER ALLEGED UNFAIR PRACTICES NOVELL BASED IN PROVO UTAH IS CONSIDERING A CIVIL SUIT AGAINST MICROSOFT IF THINGS GET ANY WORSE IF MICROSOFT FAILS TO MAKE A LEVEL PLAYING FIELD NOVELL WOULD CERTAINLY HAVE TO CONSIDER LEGAL ACTION SAID DAVID BRADFORD NOVELL'S CORPORATE COUNSEL 9302050075 930205 YOUR MONEY MATTERS WEEKEND REPORT HOW TO UNWRAP A WRAP ACCOUNT BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL DO YOU REALLY KNOW HOW YOUR WRAP ACCOUNT STACKS UP IF YOU'RE NOT SURE YOU'VE GOT PLENTY OF COMPANY WHILE INVESTORS HAVE POURED NEARLY 90 BILLION INTO WRAP ACCOUNTS FEW PEOPLE HAVE MADE THE EFFORT TO FIND OUT JUST HOW GOOD THEIR ACCOUNT IS THAT'S UNDERSTANDABLE AS SIMPLICITY IS ONE OF THE MAJOR REASONS WRAP ACCOUNTS ARE SO HOT FOR ONE ALLINCLUSIVE ANNUAL FEE YOU GET THE SERVICES OF A PROFESSIONAL MONEY MANAGER WHO CREATES A PORTFOLIO OF STOCKS AND BONDS AND TAKES CARE OF ALL THE TRADING BROKERAGE COMMISSIONS AND MONEY MANAGEMENT ARE WRAPPED INTO ONE FLAT FEE BUT ALTHOUGH ALL OF THE MAJOR BROKERAGE FIRMS NOW OFFER WRAP ACCOUNTS AND THEY ALL LOOK PRETTY MUCH ALIKE THERE CAN BE SOME PRETTY BIG DIFFERENCES AMONG THEM ALL WRAP ACCOUNTS ARE NOT CREATED EQUAL SAYS ARTHUR URCIUOLI SENIOR VICE PRESIDENT OF MERRILL LYNCH'S BUSINESS FINANCIAL SERVICES INVESTORS NEED TO KNOW WHAT THEY'RE GETTING AND WHAT THEY'RE PAYING FOR JUST AS YOU WOULD WITH OTHER INVESTMENTS YOU'VE GOT TO LOOK AT THREE BASIC AREAS PERFORMANCE COST AND CONFLICTS OF INTEREST HERE ARE 10 QUESTIONS TO ASK YOUR BROKER THAT CAN HELP YOU FIGURE OUT WHETHER YOU'RE GETTING THE BEST ACCOUNT AVAILABLE OR A BUM WRAP WHAT IS THE MONEY MANAGER'S TRACK RECORD BROKERAGE FIRMS' WRAP PROGRAMS AREN'T TRACKED BY INDEPENDENT ANALYSTS THE WAY MONEY MANAGERS AND MUTUAL FUNDS ARE AND BROKERAGE FIRMS ARE SHY ABOUT PUBLISHING PERFORMANCE FIGURES WHILE POTENTIAL CLIENTS ARE SHOWN A MONEY MANAGER'S PROFILE THE PERFORMANCE NUMBERS INCLUDED MAY BLEND THE MANAGER'S RECORD HANDLING MONEY FOR BIG INSTITUTIONAL CLIENTS WITH THE PERFORMANCE OF MUCH SMALLER ACCOUNTS FOR INDIVIDUALS IF THE MANAGER'S WRAP AND NONWRAP ACCOUNTS ARE BLENDED YOU CAN'T TELL HOW WELL HE DID IN THE WRAP SAYS JAMES DEMMERT A PRINCIPAL AT BELVEDERE GROUP A MONEY MANAGEMENT FIRM IN BELVEDERE CALIF THE MANAGER'S INSTITUTIONAL ACCOUNTS ARE TYPICALLY LARGER LESS VOLATILE AND HAVE EXPENSES THAT ARE LOWER BY HALF AT LEAST HE SAYS ASK TO SEE PERFORMANCE FIGURES THAT INCLUDE ONLY WRAP ACCOUNTS LEONARD REINHART PRESIDENT OF SHEARSON LEHMAN BROTHERS CONSULTING GROUP SAYS WRAP CLIENTS AT SHEARSON ARE GIVEN PERFORMANCE PROFILES ON MANAGERS THAT INCLUDE ONLY THE MANAGER'S WRAP ACCOUNT RETURNS WHAT'S THE REAL PERFORMANCE OF YOUR ACCOUNT TYPICALLY BROKERAGE FIRMS' PERFORMANCE NUMBERS ON WRAP ACCOUNTS DON'T FACTOR IN THE WRAP FEE WHICH IS GENERALLY ABOUT 3 A YEAR THAT CAN MAKE QUITE A DIFFERENCE OVER TIME SO IT'S SOMETHING INVESTORS SHOULD ASK FOR TWO FIRMS THAT HAVE BEEN REPORTING RETURNS NET OF FEES ARE PRUDENTIAL SECURITIES INC AND MERRILL LYNCH & CO DEAN WITTER AND SHEARSON LEHMAN BROTHERS INC SAY THEY ARE STARTING TO DO SO THIS QUARTER ALSO CHECK TO SEE WHETHER YOU HAVE BEEN GIVEN APPROPRIATE BENCHMARKS TO COMPARE YOUR PERFORMANCE WITH ONE MAJOR FIRM COMPARED ITS CLIENT'S RETURN WITH THE DOW JONES INDUSTRIAL AVERAGE EXCLUSIVE OF DIVIDENDS RATHER THAN STANDARD & POOR'S 500STOCK INDEX WITH REINVESTED DIVIDENDS THE CLIENT WAS TOLD HE DID BETTER THAN THE DOW WHEN GIVEN THE NATURE OF HIS HOLDINGS HE SHOULD HAVE BEEN TOLD HE UNDERPERFORMED THE S&P SAYS DAVID KUDISH A PRINCIPAL AT STRATFORD ADVISORY GROUP INC A CHICAGO PENSIONCONSULTING FIRM HOW ARE MANAGERS FIRED IT'S IMPORTANT FOR INVESTORS TO HAVE CLEAR EXPECTATIONS ABOUT PERFORMANCE SO THEY AVOID MAKING THE BIG MISTAKE OF INSISTING ON FIRING A MONEY MANAGER AFTER A COUPLE OF QUARTERS OF DISAPPOINTING PERFORMANCE A MANAGER'S PARTICULAR INVESTMENT STYLE MIGHT MERELY BE OUT OF FAVOR IN THE MARKET MARKETTIMING DECISIONS SHORTCIRCUIT THE VALUE OF PROFESSIONAL MONEY MANAGEMENT SAYS MR KUDISH A BROKER WHO PULLS THE PLUG ON A MANAGER TOO QUICKLY COULD BE TAKING THE INVESTOR OUT AT THE WORST POSSIBLE MOMENT AND BUYING INTO A NEW MANAGER'S STYLE AT THE WORST TIME DOES CASH COST YOU EXTRA WITH MANY WRAP ACCOUNTS THE CASH THAT HASN'T BEEN INVESTED IN STOCKS AND BONDS IS PARKED IN A MONEYMARKET FUND IT CAN BE AN EXPENSIVE PARKING PLACE THAT'S BECAUSE THE MONEY FUNDS HAVE MANAGEMENT FEES AND EXPENSES WHICH IN THE CASE OF THE FUNDS USED IN WRAP ACCOUNTS GENERALLY AMOUNT TO ABOUT THREEQUARTERS OF A PERCENTAGE POINT A YEAR ADD THAT TO A BASIC 3 WRAP FEE AND YOU'RE PAYING 375 A YEAR ON THE CASH PORTION OF YOUR PORTFOLIO BUT SOME FIRMS INCLUDING DEAN WITTER EXCLUDE CASH FROM THE ANNUAL 3 FEE SHEARSON DOESN'T OFFSET THE FEE BUT IT WILL EXCLUDE THE CASH PORTION FROM THE ANNUAL FEE IF THE INVESTOR INSISTS ON KEEPING A LARGE AMOUNT IN CASH WHAT'S THE TURNOVER IN THE ACCOUNT ALTHOUGH MOST WRAP INVESTORS STILL BELIEVE THAT ALLYOUCANEAT TRADING IS A DEAL HIGH TURNOVER CAN GENERATE MORE CAPITAL GAINS WHICH CAN DRAG DOWN REAL RETURNS WHEN FACTORED IN AT TAX TIME ASK WHAT THE AVERAGE TURNOVER HAS BEEN IN THE PORTFOLIO EVERY YEAR A GOOD PROGRAM WILL ALSO GIVE INVESTORS A STATEMENT OF THE TOTAL CAPITAL GAINS ON THE ACCOUNT SO YOUR ACCOUNTANT CAN TELL YOU WHAT YOU REALLY EARNED ON THE ACCOUNT AFTER TAXES SHOULD YOU BE IN A WRAP IF A MANAGER DOESN'T TRADE MUCH INVESTORS WHO FIND THAT THEIR ACCOUNTS HAVE LOW TURNOVER 50 A YEAR OR LESS MAY BE PAYING TOO MUCH TO BE IN A WRAP PROGRAM LIKE A DIETER AT AN ALLYOUCANEAT BUFFET YOU'RE PAYING A PREMIUM FOR SOMETHING YOU CAN'T USE IF THAT'S THE CASE YOU MIGHT BE BETTER OFF HIRING A MONEY MANAGER FOR A FLAT FEE AND PAYING FOR THE TRANSACTIONS SEPARATELY AT THE VERY LEAST ASK ABOUT GETTING A DISCOUNT ON THE ANNUAL WRAP FEE SHEARSON'S MR REINHART SAYS HIS FIRM IS MORE LIKELY TO PROVIDE DISCOUNTS FOR CLIENTS WHO HAVE PORTFOLIOS WITH CONSERVATIVE EQUITIES AND LOW TURNOVER PRUDENTIAL SECURITIES LIKE SOME OTHER FIRMS CAN UNBUNDLE ITS WRAP PROGRAM INVESTORS CAN PAY A FEE FOR MONEY MANAGER SELECTION AND MONITORING A FEE FOR MONEY MANAGEMENT AND PAY FOR THE TRADES SEPARATELY WHEN ADDED UP THE COST CAN BE LOWER THAN AN ACCOUNT WITH A SINGLE SOUPTONUTS FEE WHAT ABOUT A DISCOUNT AS COMPETITION HEATS UP IN THE WRAP BUSINESS MORE AND MORE FIRMS ARE LOWERING THE ANNUAL FEE EVEN ON ACCOUNTS AS SMALL AS 100000 INDIVIDUALS WITH PORTFOLIOS AS SMALL AS THAT ARE MORE LIKELY TO GET DISCOUNTS IF THEY DO A LOT OF BUSINESS WITH THE FIRM HAVE LOW TURNOVER IN THEIR ACCOUNT OR HAVE AN ACCOUNT THAT INCLUDES SOME FIXED INCOME DESPITE WHAT BROKERS TELL YOU EVEN AN ANNUAL FEE LOWER THAN 3 WILL STILL PROVIDE THE FIRM WITH A HEALTHY PROFIT MARGIN KURT CERULLI PRINCIPAL AT CERULLI ASSOCIATES A BOSTON COMPANY THAT IS COMPLETING A STUDY ON WRAP PROGRAMS FOR FINANCIAL FIRMS SAYS INDIVIDUAL BROKERS CAN DISCOUNT FEES BY TWOTENTHS TO THREETENTHS OF A PERCENTAGE POINT WITHOUT AFFECTING THE BROKER'S OWN CUT BROKERAGE FIRMS CAN TAKE THE ANNUAL FEE DOWN EVEN LOWER BELVEDERE GROUP PROVIDES A WRAP ACCOUNT FOR AN ANNUAL FEE OF ONLY 1 OF ASSETS EVEN IF BROKERAGE FIRMS DISCOUNT THEIR ANNUAL FEES THERE ARE STILL BIG PROFITS IN WRAP ACCOUNTS TRADING COSTS ARE NEGLIGIBLE LESS THAN TWO CENTS A SHARE AND BECAUSE ALL TRANSACTIONS ARE USUALLY DIRECTED THROUGH THE FIRM'S OWN TRADING DESK THE FIRM CAN POTENTIALLY MAKE MONEY IN OTHER WAYS COLLECTING COMMISSIONS FROM THE BUYER OR SELLER ON THE OTHER SIDE OF THE TRANSACTION OR GATHERING INCOME FROM SPREADS ON THE SECURITIES THEY SELL DOES YOUR BROKER HAVE AN INCENTIVE TO CHOOSE INHOUSE MANAGERS AT SOME FIRMS THAT OFFER WRAP CLIENTS A CHOICE BETWEEN INTERNAL AND EXTERNAL MONEY MANAGERS BROKERS GET PAID HIGHER FEES IF THEY REFER CLIENTS TO INTERNAL MANAGERS WHILE THIS DOESN'T CHANGE WHAT AN INDIVIDUAL PAYS IT COULD AFFECT A BROKER'S DECISION AND SHOULD BE DISCLOSED SAYS MILDRED ALLSTROM AN ASSISTANT VICE PRESIDENT AT CALLAN ASSOCIATES AN INVESTMENT CONSULTING FIRM DON'T HESITATE TO ASK ALTHOUGH WRAP ACCOUNTS ELIMINATE ANY WORRY THAT A BROKER IS OVERTRADING OR CHURNING YOUR ACCOUNT TO COLLECT EXTRA COMMISSIONS YOU SHOULD BE ALERT FOR OTHER POTENTIAL CONFLICTS OF INTEREST WRAPS HAVEN'T SOLVED CONFLICTS OF INTEREST IN THIS BUSINESS THEY JUST SHIFT THEM AROUND AND MAKE THEM HARDER TO FIND SAYS BARRY GUTHARY DIRECTOR OF THE NORTH AMERICAN SECURITIES ADMINISTRATORS ASSOCIATION IS THE BROKER THE MONEY MANAGER AT SOME FIRMS STOCKBROKERS WHO HAVE EXTRA TRAINING CAN FUNCTION AS THE MONEY MANAGERS OF WRAP ACCOUNTS IF THIS HAPPENS ASK THE BROKER HOW PERFORMANCE IS MONITORED THE WHOLE THEORY IS THAT YOU'RE PAYING THE BROKER TO WATCH THE MONEY MANAGER BUT IF HE'S THE MONEY MANAGER HE HAS NO INCENTIVE TO TELL YOU HE ISN'T DOING A GOOD JOB SAYS MR GUTHARY WHO ALSO IS THE HEAD SECURITIES REGULATOR IN MASSACHUSETTS MOREOVER HE SAYS SINCE PART OF THE ANNUAL WRAP FEE IS SUPPOSED TO PAY FOR MONITORING YOUR MONEY MANAGER IT ISN'T FAIR TO PAY SO MUCH YOU'RE BASICALLY PAYING TWICE AND NOT GETTING WHAT YOU'RE PAYING FOR DOES THE MONEY MANAGER FAVOR THE BROKERAGE FIRM'S SECURITIES SOME WORRY THAT A WRAP MANAGER MAY FEEL BEHOLDEN TO THE BROKERAGE FIRM FOR DELIVERING MILLIONS OF DOLLARS TO MANAGE AND PUT THE FIRM'S INTEREST AHEAD OF THE INVESTOR'S BY FAVORING STOCKS AND BONDS SOLD BY THE FIRM THE MANAGER HAS BEEN GIVEN THIS HUGE PLUM SAYS WAYNE WAGNER A PRINCIPAL WITH PLEXUS GROUP A CONSULTING FIRM FOR MONEY MANAGERS IN SANTA MONICA CALIF A MONEY MANAGER'S CLIENT IS REALLY THE BROKERAGE FIRM PEOPLE WHO ARE WORRIED ABOUT THIS CAN ASK THE BROKER WHAT PERCENTAGE OF THE ACCOUNT'S ASSETS ARE INVESTED IN SECURITIES THE BROKERAGE FIRM UNDERWROTE IF THIS IS HIGHER THAN 20 OR SO THEY MIGHT WANT TO COMPARE THE PERFORMANCE OF THOSE ASSETS WITH THE REST OF THE ACCOUNT IT DOESN'T RISE TO THE LEVEL OF A RED FLAG UNLESS THE FIRM HAS A HISTORY OF UNDERWRITING DOGS SAYS MR CERULLI 9302050074 930205 LEISURE & ARTS BOOKSHELF THE INTRICATE PATTERNS OF A YOUNG MAN'S LIFE BY RICHARD LOCKE PERHAPS BECAUSE OUR LITERATURE GOT OFF TO SUCH A SHAKY AND SELFCONSCIOUS START WITH BOASTFUL CALLS FOR LITERARY INDEPENDENCE AND ANXIOUS LISTS OF ALL THE THINGS THAT MADE AMERICA SO DIFFICULT FOR WRITERS FOR MANY YEARS IT WAS THE FASHION TO THINK OF AMERICAN LITERATURE AS DIVIDED INTO RIVAL CAMPS ROUGH VS SMOOTH LOWBROW VS HIGHBROW FRONTIER CRUDENESS VS DRAWINGROOM FORMALITY OR AS ONE CRITIC PUT IT IN LESS ETHNICALLY ENLIGHTENED TIMES REDSKIN VS PALEFACE ALL THIS SUGGESTS SOME ARCHETYPICAL FACEOFF BETWEEN WALT WHITMAN AND HENRY JAMES BUT LIKE A LOT OF BRAWLING AND BAWLING IN THE WOODS SUCH DICHOTOMIES TEND TOWARD SENTIMENTAL SIMPLIFICATIONS WHITMAN'S WORK IS ANYTHING BUT CRUDE AND ARTLESS JAMES'S CAREER RESEMBLES THE LABORS OF HERCULES AND NO STRONG ARTIST EVER DROPS A STITCH OF STYLE BE IT HOMESPUN OR SILK OR BLUE IRONIC POLYESTER ALL KINDS OF WRITERS SHARE OUR NATIONAL TASTE FOR BIG THEMES INTIMATIONS OF IMMORTALITY THE ECHOES OF COLLAPSING RELIGIOUS CERTAINTIES LIFE ON SOME FRONTIER OR ON THE EDGE AND EVEN TODAY THE MOST WELLMANNERED SOCIALLY OBSERVANT REALISTIC DOMESTIC FICTION MAY IN TRUTH DEEP IN ITS DRAMATIC STRUCTURE PSYCHOLOGY AND PATTERN OF IMAGERY BE HUNTING A WHITE WHALE OR LIGHTING OUT FOR NEW TERRITORY I'M SUGGESTING OF COURSE THAT CHARLES BAXTER'S NOVEL SHADOW PLAY NORTON 399 PAGES 2195 IS DECEPTIVELY MODEST IT TURNS OUT TO BE A LOT MORE THAN THE STORY OF A MIDDLE AMERICAN FAMILY OR A STUDY OF PROVINCIAL MANNERS AND MORALS MR BAXTER'S SECOND NOVEL AND FIFTH WORK OF FICTION IN NINE YEARS HIS FIRST NOVEL WAS THE MOVING AND MUCH ADMIRED FIRST LIGHT IN 1987 SHADOW PLAY IS ALTOGETHER IMPRESSIVE EMOTIONALLY INTELLECTUALLY TECHNICALLY IT'S BOTH ORIGINAL AND THOROUGHLY A PART OF OUR DECEPTIVELY COMPLEX NATIVE TRADITION IT BEGINS WITH A CROW CALLING FROM A RAINY WOOD TO AN EIGHTYEAROLD BOY RUNNING AWAY FROM HIS GENTLE DRUNK FATHER A SMALLTOWN ARCHITECT DOING CARPENTRY IN THE BASEMENT AND HIS DREAMY DISTANT MOTHER STIRRING ONE OF HER GLOOMY STEWS IN THE KITCHEN THE BOY RUNS INTO THE WOODS WITH HIS TEDDY BEAR HIS SCOTTIEDOG NIGHT LIGHT AND SOME CAREFULLY FOLDED CLOTHES HE HOPES TO LIVE THERE OR WITH HIS AUNT ELLEN IN TIME WE LEARN SHE IS WORKING ON AN ALTERNATIVE BIBLE ABOUT A GOD WHO DOESN'T LOVE US THAT GOD WENT AWAY BUT WHO IS ENDLESSLY CURIOUS ABOUT HIS CREATION LIKE AN AUTHOR THE NOVEL ENDS SOME 20 YEARS LATER WITH A CROW DROPPING DOWN FROM A TREE TO SNATCH A SEED FROM THE PALM OF THAT SAME AUNT ELLEN IN A LAST MOMENT OF WINTER LIGHT IN BETWEEN LIES THE STORY OF THE RUNAWAY BOY WYATT PALMER WHO ALMOST DROWNS AT THE AGE OF SIX WHOSE FATHER DIES WHEN HE IS EIGHT WHOSE MOTHER DRIFTS INTO MADNESS WHO IS BROUGHT UP BY HIS THEOLOGICAL AUNT AND WHOSE LIFE IS SHADOWED BY HIS BELOVED SELFDESTRUCTIVE LI'L DEVIL OF A COUSIN IN COLLEGE WYATT MARRIES A PONYTAILED EXPERT ON THE BALANCE BEAM WHO DOES MAGIC TRICKS WITH COINS AND RABBITS ADORES HIS WATCHFULNESS AND IS SUPREMELY SENSITIVE A COUNTERWEIGHT TO HIS SHADOWY SIDE SHE RESISTED SADNESS TO EXACTLY THE DEGREE THAT HE INVITED IT WYATT SEEKS REFUGE IN THE MIDWESTERN ORDINARY HIS MOTHER WHO MAKES UP NUTTY WORDHEAPS CALLS HIM CORILINEAL SO NORMAL IT'S STRANGE HE BECOMES ASSISTANT TO THE CITY MANAGER THE BOOK IS SET IN FIVE OAKS MICHIGAN THE TOWN MR BAXTER HAS BEEN WRITING ABOUT FOR NEARLY A DECADE HE HELPS SUPPORT HIS MOTHER AND HIS ROWDY COUSIN HE BECOMES THE FATHER OF TWO CHILDREN HE'S DRAWN INTO HELPING A CHEESY ENTREPRENEUR BUILD A BIOTECH FACTORY THAT BRINGS IN MUCH NEEDED MONEY AND NEW JOBS THERE'S EVEN IN GRATITUDE A JOB FOR HIS COUSIN THE RISKS ARE PALPABLE ARE YOU GUYS IN THE CITY GOVERNMENT GOING TO START WHINING AND WRINGING YOUR HANDS IF WE SPILL A LITTLE HOOHAH ON THE FLOOR ASKS THE ENTREPRENEUR BUT YOU CAN'T MAKE AN OMELETTE WITHOUT BREAKING EGGS SO WYATT GOES ALONG WITH THIS LITTLE INDUSTRIAL REVOLUTION THE NARRATIVE APPROACHES MELODRAMA WITHOUT MISSING A BEAT HIS COUSIN GETS SICK AND WYATT STARTS TO CROSS THE LINE FROM BORED GOOD CITIZEN HUSBAND AND FATHER TO HALFMAD PROWLER ACCESSORY TO CRIME BENT ON REVENGE PLUNGING INTO SHADOW THE PSYCHOLOGY AND RELIGIOUS ISSUES BECOME DARKER AND GRANDER THE PATTERNS OF INCIDENTS AND CHARACTERS AND IMAGES BECOME CLEARER NOT ONLY WYATT AND HIS COUSIN AND THEIR PAIRED WIVES OR THE CRAZY MOTHER AND ECCENTRIC AUNT BUT SUNSHINE AND SHADOW DROWNING AND FLOATING AND AN INTERPLAY OF EARTH AIR FIRE AND WATER ALL THIS IS GOING ON IN THE MIDST OF A REALISTIC NOVEL OF EXTRAORDINARILY PRECISE AND SUGGESTIVE DICTION FOR EXAMPLE ON THE WAY TO DEEP TROUBLE WYATT NOTICES THE HIGH GRASS SLITHERED AND HISSED AGAINST THE SIDE OF THE CAR HIS SICK COUSIN JOKES I'M HALF ANGEL ALREADY A TATTOO IS A SHADOW NAILED TO A CHARACTER'S UPPER ARM A FAIRGROUND VERSION OF LA CUCARACHA SUGGESTS TINFOIL INSTRUMENTS PLAYED BY SCORPIONS AFTER A DECADE OF SO MUCH PLAYITSAFE FICTION OF PHOTOREALISTIC GLOOM IT'S A PLEASURE TO ENCOUNTER A NOVEL IN THE GREAT TRADITION OF AMERICAN MORAL REALISM TOUCHED BY SHARDS OF GNOSTIC FAITH AND GLINTS OF TRANSCENDENTAL LIGHT 9302050073 930205 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S PROMISES OF TOUGH SPENDING CUTS RUN INTO DIFFICULTIES HE PLANS TO ISSUE ORDERS SOON TO FORCE CUTBACKS IN BUREAUCRACY AIDES CLAIM CLINTON MAY MEET HIS GOAL OF TRIMMING WHITE HOUSE STAFF OPERATIONS BY 25 MAINLY THROUGH LOWER SALARIES ONCESACRED PROGRAMS SUCH AS RURAL ELECTRIFICATION AND CONTRACTS TO CLEAN UP NUCLEARWEAPONS PLANTS MAY BE TRIMMED BUT THE WHITE HOUSE MISSED ITS DEADLINE YESTERDAY TO TELL AGENCIES WHICH PROGRAMS WILL BE AXED CLASHES CONTINUE ON SOME BIG TICKET ITEMS INCLUDING THE SPACE STATION AND THE SUPERCOLLIDER WHICH BUDGET CHIEF PANETTA HAS CRITICIZED AND GORE HAS FAVORED HHS CHIEF SHALALA WANTS SAVINGS FROM ANY HEALTHCARE OVERHAUL DEVOTED TO THAT PLAN BUT THE WHITE HOUSE WANTS SOME FOR DEFICIT REDUCTION SOME PET PROGRAMS WILL ACTUALLY GROW SUCH AS A HIGHSPEED COMPUTER NETWORK AND RESEARCH INTO MANUFACTURING TECHNOLOGY CHINA WORRIES THAT CLINTON'S TOUGH LINE COULD LEAD TO A CLASH BEIJING WILL USE THE VISIT LATER THIS MONTH OF A US TRADE OFFICIAL TO REPEAT ITS OPPOSITION TO ATTACHING HUMANRIGHTS CONDITIONS TO US RENEWAL OF MOST FAVORED NATION TRADE STATUS AS CLINTON CALLED FOR DURING THE CAMPAIGN SEN MITCHELL AND REP PELOSI ARE EXPECTED TO INTRODUCE BILLS NEXT MONTH CALLING FOR SUCH RESTRICTIONS BUT SOME US ANALYSTS BELIEVE A RUPTURE CAN BE AVOIDED THEY SAY THE US MIGHT ATTACH CONDITIONS TO CHINA'S TRADE STATUS THAT WOULDN'T KICK IN FOR A YEAR THAT WOULD GIVE BEIJING AND WASHINGTON TIME TO QUIETLY WORK OUT A DEAL WINSTON LORD CLINTON'S PICK AS AN ASSISTANT SECRETARY OF STATE HAS CALLED FOR ONLY LIMITED CONDITIONS THAT WOULD BE MORE LIKELY TO BRING CHANGES IN CHINESE BEHAVIOR CLINTON SEEKS TO SOOTHE CONGRESS AND PAVE THE WAY FOR HIS ECONOMIC PLAN HIS BUDGET CHIEF HUDDLES WITH SENATE BUDGET CHAIRMAN SASSER AFTER SASSER LAMBASTES WHITE HOUSE TECHNOCRATS FOR RAISING THE IDEA OF FREEZING SOCIAL SECURITY BENEFITS TREASURY CHIEF BENTSEN MEETS WITH HOUSE TAXWRITER ROSTENKOWSKI WHO URGES COLLEAGUES TO HOLD THEIR CRITICISMS CLINTON HIMSELF PHONES GOP SEN DOMENICI A LIKELY DEFICITREDUCTION ALLY REACTION TO THE PLAN CLINTON ANNOUNCES TO CONGRESS FEB 17 WILL BE CRUCIAL IF CLINTON SPEAKS AND ALL YOU SEE THE NEXT DAY IS COMPLAINTS FROM HIS OWN PARTY IT WON'T HAVE MUCH CREDIBILITY ON WALL STREET SAYS FIRST BOSTON'S DARWIN BECK IN A GOOD OMEN FOR CLINTON THE REPUBLICAN RESPONSE WILL BE GIVEN BY GOP HOUSE LEADER MICHEL WHO ISN'T LIKELY TO BE STRIDENT MEETING WITH DEMOCRATIC LAWMAKERS YESTERDAY CLINTON JOKED TO ONE DEMOCRAT ROSS PEROT YOU WERE WRONG YOU JUST CAN'T LIFT THE HOOD AND FIX IT RHODES SCHOLARS IN THE CLINTON ADMINISTRATION ALREADY TOTAL ABOUT 20 EXCEEDING THE 13 IN THE KENNEDY ADMINISTRATION AND ARE EXPECTED TO REACH WELL OVER 20 WHEN ALL THE JOBS ARE FILLED BUT WHETHER THE ELITE AND BRIGHTEST ARE BEST FOR CLINTON POLICIES IS QUESTIONED BY SOME OF CLINTON'S BLUEJEANS CAMPAIGN OFFICIALS CISNEROS URGES THE WHITE HOUSE TO CONDUCT A REVIEW OF WHAT THE HUD SECRETARY SAYS WAS INADEQUATE GOVERNMENT RESPONSE TO LAST YEAR'S RIOTS IN SOUTH CENTRAL LOS ANGELES AND TO PRESS FOR MORE HELP THERE WHILE HOPEFUL THE SECOND TRIAL OF POLICEMEN IN THE RODNEY KING CASE WON'T STIR VIOLENCE HE RECOMMENDS CONTINGENCY PLANNING PROTECTIONIST PUSH AFTER LOBBYING BY DETROIT AUTO MAKERS SOME CONGRESSIONAL DEMOCRATS PLAN A BILL TO RESTRICT JAPANESE AUTO OUTPUT IN THE US AND FURTHER LIMIT JAPANESE IMPORTS YESTERDAY GENERAL MOTORS PRESIDENT JOHN SMITH AND FORD CHAIRMAN HAROLD POLING PERSONALLY LOBBIED TREASURY OFFICIALS ON REINSTATING MINIVAN TARIFFS TRADE OFFICIALS PUSH TO FILL KEY POSTS SO THEY CAN DEVELOP TRADEPOLICY PROPOSALS FOR CLINTON LIKELY APPOINTMENTS SOON INCLUDE ELLEN FROST TO BE THE TRADE REPRESENTATIVE'S POLICY PLANNER IRA SHAPIRO AS THE TRADE OFFICE'S GENERAL COUNSEL AND ROBERT KYLE AS TRADE EXPERT TO THE NATIONAL ECONOMIC COUNCIL CLINTONITES STRUGGLE TO SHAPE POLICIES AND FILL VACANCIES DELAYS IN REVENUE ESTIMATES FROM THE TREASURY DEPARTMENT SLOW UP WHITE HOUSE NUMBER CRUNCHERS A PROMISED REVIEW OF REGULATORY IMPEDIMENTS TO LENDING CAN'T START UNTIL BANKING AGENCY POSTS ARE FILLED OFFICIALS DECLINE TO TESTIFY BEFORE CONGRESS ON COMMUNITYDEVELOPMENT LENDING WHICH CLINTON BACKS BECAUSE A POLICY HASN'T JELLED YET THE ADMINISTRATION HIRES ABOUT 250 TEMPORARY EMPLOYEES TO FILL JOB GAPS FOR NOW BUT NOT ALL RUNS SMOOTHLY THE EPA AFTER GETTING APPROVAL TO ISSUE 31 BUSHERA REGULATIONS TAKES BACK FIVE OF THEM AFTER THE BUDGET OFFICE IS UNABLE TO COMPLETE REVIEWS OF THEM AT CLINTON'S CABINET MEETING AT CAMP DAVID TWO PEER FACILITATORS WERE BROUGHT IN TO HELP GET POLICY DISCUSSIONS GOING MINOR MEMOS THE ACRONYM FOR THE HEALTH CARE FINANCING ADMINISTRATION HCFA IS NOW SAID TO STAND FOR HILLARY CAN FIX ANYTHING COMEDIAN MARK RUSSELL ANNOUNCES WASHINGTON'S NEWEST LAW FIRM BORK AND BAIRD REP MICHEL JOKES I SUPPORT AN AIR BAG IN EVERY CAR UNLESS A SENATOR IS ON BOARD IN WHICH CASE IT BECOMES REDUNDANT 9302050072 930205 LEISURE & ARTS ON SPORTS FANDOM IS IT IN THE GENES BY FREDERICK C KLEIN 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 OK I'M JOKING AS FAR AS I KNOW SCIENTISTS HAVEN'T FOUND ANY F FACTOR OR PROBABLY EVEN LOOKED FOR ONE I STRONGLY SUSPECT HOWEVER THAT ONE EXISTS AND WILL SOMEDAY BE UNCOVERED THE SUBJECT OF WHO'S A FAN AND WHO ISN'T CAME TO MIND LAST WEEKEND WHEN I READ THAT SOME 125 MILLION AMERICANS WATCHED THE TELECAST OF THE SUPER BOWL CONTEST BETWEEN THE DALLAS COWBOYS AND BUFFALO BILLS THAT MEANT JUST ABOUT HALF THE POPULATION OF THIS COUNTRY HAD AT LEAST A PASSING INTEREST NO PUN INTENDED IN PROFESSIONAL FOOTBALL'S ANNUAL BIG GAME IT ALSO MEANT THAT JUST ABOUT HALF DID NOT THE SPLIT SEEMED TOO NEAT TO BE COINCIDENTAL IT'S TEMPTING TO ASCRIBE THE DIVISION TO NURTURE RATHER THAN NATURE BUT MY OWN EXPERIENCE INDICATES OTHERWISE I GREW UP THE ONLY SPORTS FAN IN A FAMILY OF FOUR WITH BOTH PARENTS AND A SISTER IN THE OPPOSING CAMP MY FATHER WAS PARTICULARLY ADAMANT ABOUT HIS NONFANHOOD FOR INSTANCE HE WAS FOND OF CALLING FOOTBALL FOOLBALL HE HAD LESS AGAINST BASEBALL BUT NOT MUCH WHEREAS IN MANY FAMILIES FATHERS TAKE SONS TO THEIR FIRST BASEBALL GAMES I TOOK MY FATHER TO HIS A SIMILIAR CONDITION EXISTS IN THE FAMILY I'VE HELPED RAISE AMONG THE CHILDREN THE FOUR BOYS ARE FANS TO ONE DEGREE OR ANOTHER BUT JESSICA THE LONE GIRL IS NOT HER LACK OF INTEREST DOESN'T STEM FROM LACK OF EXPOSURE WHEN YOUNGER SHE'S 20 NOW SHE WAS TAKEN TO ATHLETIC EVENTS OF ALL SORTS AND PLIED WITH GOODIES TO SUGARCOAT THE EXPERIENCE BUT THE EFFORT AT INDOCTRINATION FAILED AND RETROSPECTIVELY SHE BEMOANS THE MTV TIME IT COST HER TO SEE WHETHER MY OBSERVATIONS WERE COMMON I DID WHAT NEWSPAPER REPORTERS DO I CALLED AN EXPERT HE'S ALLEN GUTTMANN PROFESSOR OF AMERICAN STUDIES AT AMHERST COLLEGE HE IS THE AUTHOR OF A BOOK TITLED SPORTS SPECTATORS WHICH SEEMS RIGHT ON THE MARK ALAS GUTTMANN QUICKLY CONFESSED HE'D GIVEN LITTLE THOUGHT TO THE FACTORS THAT SEPARATE FANS FROM NONFANS POINTING OUT THAT HIS BOOK IS CONCERNED MOSTLY WITH THE HISTORY OF FANDOM SAMPLE CHAPTER TITLES INCLUDE GREEK SPECTATORS AND THE ROMAN ARENA AND ITS PATHOLOGY SPECTATOR HOOLIGANS HE SAID THAT OFF THE TOP OF HIS HEAD HE SUPPOSED THAT NONFANS EITHER HAVE OTHER OBSESSIONS MUSIC OR CIVIL WAR HISTORY FOR EXAMPLE OR VERGE ON THE APATHETIC HE ALSO THOUGHT FANHOOD IS ASSOCIATED WITH COMPETITIVENESS IN OTHER SPHERES AND THAT THIS MIGHT WELL BE A PREDISPOSITION HE REMARKED THAT HAVING WRITTEN ABOUT SPORTS HAS GIVEN HIM AN APPRECIATION OF THE UNPREDICTABLE NATURE OF FANHOOD OFTEN WHEN I'M WITH COLLEAGUES I'LL WANT TO CHAT ABOUT THE NEWS OR THE WEATHER OR THEIR RESEARCH BUT THEY'LL KEEP SWITCHING THE SUBJECT TO SPORTS SAID HE GUTTMANN SURELY HAS A POINT ABOUT THE OBSESSIVE NATURE OF SOME FANS IT'S NOT BY ACCIDENT THAT THE SIGNS CARRIED BY TICKET SEEKERS OUTSIDE STADIUMS ON BIGGAME DAYS ALWAYS READ NEED 1 OR 2 OR 3 NOT WANT 1 THE SAME GOES FOR COMPETITIVENESS BESIDES WHATEVER ROOTING FOR THEIR TEAMS THEY MIGHT DO FANS COMPETE AMONG THEMSELVES IN SUCH CATEGORIES AS BOISTEROUSNESS BIZARRE DRESS AND KNOWLEDGE OF SPORTS TRIVIA NONFANS THINK IT'S REDUNDANT TO LINK THOSE LAST TWO WORDS THERE ARE OF COURSE GRADES OF FANDOM AND LISTING THEM MIGHT BE USEFUL STARTING WITH THE MOST FANATICAL WE HAVE HAS A LIFE MOST FANS THINK THEY BELONG IN THIS CLASS ALTHOUGH NOT ALL DO THEY LIKE SPORTS BUT ALSO GO TO AN OCCASIONAL MOVIE READ AN OCCASIONAL BOOK AND CAN TALK ABOUT THINGS LIKE THE NEWS THE WEATHER OR THEIR COLLEAGUES' RESEARCH THEY'RE MORE LIKELY TO ROOT FOR SPECIFIC TEAMS THAN TO CARE ABOUT SPORTS IN GENERAL IT'S MY OBSERVATION THAT MOST FEMALE FANS GO HERE CARES THAT MIKE DITKA WAS FIRED THESE PEOPLE PAY ATTENTION ONLY TO SPORTING EVENTS OF TRANSCENDENT IMPORTANCE LIKE THE OLYMPICS SUPER BOWL WORLD SERIES OR THE CHICAGO BEARS' FIRING OF DITKA AND THEN ONLY BECAUSE THEY'RE AFRAID OF BEING LEFT OUT OF THE NEXTDAY CONVERSATIONS THEY MAY ROOT BUT DON'T REALLY CARE IF THEIR TEAMS WIN OR LOSE AND WHEN THEY DO GO TO GAMES OFTEN LEAVE BEFORE THEY'RE OVER MANY CALIFORNIANS FIT THIS DESCRIPTION WHO'S MIKE DITKA THESE WOULD BE THE OTHEROBSESSED/APATHETICS THAT GUTTMANN MENTIONED AND ARE I'D GUESS ABOUT AS NUMEROUS AS THE GETALIFERS THEY THINK THAT KIRBY PUCKETT IS A COUNTRYWESTERN SINGER AND THE NBA IS A LAWYER'S GROUP THEY SHOULD NOT BE SCORNED BECAUSE IT TAKES A REAL KNACK TO AVOID SPORTS IN THIS DAY AND AGE LOOKED AT IN THIS WAY IT BECOMES APPARENT THAT ONCE SCIENTISTS LOCATE THE F FACTOR THEY'LL FIND IT STRONG IN SOME WEAKER IN OTHERS AND NONEXISTENT IN A FEW AND READILY MANIPULABLE WHEN DESIGNER GENES COME INTO VOGUE BUT WHAT'S THAT YOU SAY YOU DON'T THINK IT'S THE GENES WELL THEN MAYBE IT'S THE SHOES 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 9302050071 930205 WHO'S NEWS A SCORE CARD OF CONTENDERS FOR IBM CHIEF BY MICHAEL W MILLER AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL CORPORATE AMERICA'S BIGGEST BEAUTY CONTEST EVER THE SEARCH FOR A NEW BOSS TO TURN AROUND INTERNATIONAL BUSINESS MACHINES CORP KICKS INTO HIGH GEAR TODAY THE IBM BOARD'S SEARCH COMMITTEE IS EXPECTED TO HUDDLE TODAY WITH ITS TWO EXECUTIVE SEARCH FIRMS AND START PORING OVER NAMES ON A LONG PRELIMINARY LIST OF CANDIDATES THE COMMITTEE'S CHAIRMAN IBM DIRECTOR JAMES BURKE HAS SAID HE'LL CONSIDER EXECUTIVES OUTSIDE IBM AND EVEN OUTSIDE THE COMPUTER INDUSTRY HE HAS SAID THE SEARCH WILL BE DONE IN 90 DAYS OTHERS WORKING ON THE SEARCH SAY THE JOB MAY GO MUCH FASTER THAN THAT BASED ON PEOPLE CLOSE TO IBM AND SPECULATION IN THE INDUSTRY HERE'S A RUNDOWN OF PROSPECTS AS THE IBM SEARCH GETS UNDER WAY THOUGH NOT IN ANY ORDER OF PROBABILITY PAUL STERN CHAIRMAN AND CHIEF EXECUTIVE OFFICER NORTHERN TELECOM LTD TALK ABOUT TIMING JUST TWO DAYS AFTER IBM LAUNCHED ITS SEARCH DR STERN ONE OF THE COMPUTER INDUSTRY'S BESTREGARDED VETERANS ANNOUNCED HE IS LEAVING HIS CEO POST NORTHERN TELECOM THE TORONTO TELECOMMUNICATIONS GIANT INSISTS THE TIMING WAS PURELY A COINCIDENCE BUT SENSING OPPORTUNITY THE IBM SEARCH COMMITTEE APPARENTLY NOW HAS DR STERN ON ITS INITIAL LONG LIST DR STERN HAS DURING A LONG CAREER ESTABLISHED A REPUTATION AS A RESTLESS BRUTALLY DEMANDING MANAGER WITH NO PATIENCE FOR COMMITTEES AND BUREAUCRACY HIS RESUME INCLUDES A PHD IN PHYSICS EIGHT YEARS AT IBM AND THE PRESIDENCY OF BURROUGHS CORP AND ITS SUCCESSOR UNISYS CORP LAST WEEK HE SAID HE WANTS TO TEACH AT THE WHARTON SCHOOL AND PURSUE OTHER NONBUSINESS INTERESTS PEOPLE WHO HAVE TALKED TO DR STERN SAY HE BELIEVES IBM CAN RECOVER UNDER A PITILESS LEADER UNAFRAID OF WIELDING A SHARP AXE HE WOULDN'T COMMENT ABOUT IBM C MICHAEL ARMSTRONG CHAIRMAN HUGHES AIRCRAFT CO MR ARMSTRONG 54 YEARS OLD WAS PERHAPS THE TOP CONTENDER TO SUCCEED MR AKERS AS IBM'S CEO UNTIL LAST YEAR WHEN MR AKERS NUDGED HIM OUT AS SENIOR VICE PRESIDENT BY BLUNTLY TELLING HIM HE WOULD NEVER GET THE TOP JOB MR ARMSTRONG LANDED FIRMLY ON HIS FEET HOWEVER EARNING HIGH PRAISE FOR HIS INITIAL ACTIONS AIMED AT TURNING AROUND GENERAL MOTORS CORP'S HUGHES IT WOULD BE AWKWARD FOR HIM TO JUMP SHIP AT HUGHES SO SOON GM IS SAID TO HAVE PROMISED HIM BIG THINGS IF ALL GOES WELL AT HUGHES EXPANDED TURF INCLUDING THE HUGE ELECTRONIC DATA SERVICES UNIT AND ULTIMATELY A VICE CHAIRMANSHIP AND BOARD SEAT MR ARMSTRONG SKIPPED OUT OF IBM BEFORE ITS PRECIPITOUS SLIDE AT THE END OF 1992 BUT SOME INDUSTRY EXECUTIVES SAY HE'S STILL TAINTED BY IBM'S LEGACY OF MISCALCULATIONS DURING THE 1980S LAWRENCE BOSSIDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALLIEDSIGNAL INC MR BOSSIDY 57 PRIVATELY HAS BEEN TELLING COLLEAGUES HE'S AT ALLIEDSIGNAL FOR THE LONG HAUL BUT IBM'S SEARCH COMMITTEE IS BELIEVED TO HAVE MR BOSSIDY'S NAME ON ITS PRELIMINARY LIST IN FACT BY TAKING THE UNUSUAL STEP OF HIRING TWO SEARCH FIRMS IBM MADE IT EASIER TO APPROACH MR BOSSIDY AND OTHER HIGHPROFILE EXECUTIVE JOBHOPPERS ALLIEDSIGNAL RETAINED HEIDRICK & STRUGGLES'S GERARD ROCHE TO LURE MR BOSSIDY AWAY FROM GENERAL ELECTRIC CO IN 1991 THAT MEANS MR ROCHE IS ETHICALLY BOUND NOT TO WOO MR BOSSIDY FOR IBM BUT IBM'S OTHER SEARCH FIRM SPENCER STUART COULD MAKE THE CALL MR BOSSIDY HAS WON RAVE REVIEWS FOR HIS TURNAROUND THUS FAR AT THE CONGLOMERATE AN ALLIEDSIGNAL SPOKESMAN SAYS THE COMPANY DOESN'T HAVE ANY OFFICIAL COMMENT ABOUT MR BOSSIDY AND IBM JOHN SCULLEY CHAIRMAN APPLE COMPUTER INC AFTER A DECADE AT PERSONALCOMPUTER CONCERN APPLE THE 53YEAROLD MR SCULLEY HAS GAINED RESPECT IN THE TECHNOLOGY COMMUNITY AND LATELY HAS BEEN CULTIVATING HIS REPUTATION AS A VISIONARY EXACTLY WHAT IBM HAS SAID IT WANTS LIKE MR BOSSIDY MR SCULLEY IS OFFLIMITS TO HEIDRICK'S MR ROCHE WHO HANDLED THE APPLE SEARCH THAT PLUCKED MR SCULLEY OUT OF PEPSICO BUT MR SCULLEY IS STILL BELIEVED TO HAVE A SPOT ON IBM'S PRELIMINARY LONG LIST PEOPLE CLOSE TO APPLE THINK MR SCULLEY IS STILL AGONIZING ABOUT HOW TO RESPOND IF APPROACHED ABOUT THE IBM JOB HE'S SAID TO BE HAPPY WITH APPLE'S POSITION IN THE COMPUTER INDUSTRY AND WOULD RATHER FOCUS ON FUTURISTIC TECHNOLOGY THAN ON CLEANING UP A MESS AT IBM BUT THE PROSPECT OF BECOMING A LEGEND BY TURNING AROUND A CORPORATE ICON COULD PROVE TEMPTING ANOTHER POSSIBLE LURE MR SCULLEY'S STRONG LINKS TO THE EAST COAST HE AND HIS WIFE RECENTLY BOUGHT A HOUSE IN THEIR OLD HOME OF GREENWICH CONN AND MRS SCULLEY IS SAID TO BE ANXIOUS TO LEAVE THE WEST COAST OFFICIALLY APPLE HAS SAID MR SCULLEY ISN'T PLANNING TO LEAVE THE COMPANY THE GE SOLUTION IBM CAN BE EXPECTED TO TAKE A LOOK AT AMERICA'S LEADING HEADHUNTER FISHING POOL ALSO KNOWN AS GENERAL ELECTRIC CO GE CHAIRMAN JOHN WELCH HAS HIMSELF BEEN WIDELY MENTIONED AS THE PERFECT SOLUTION TO IBM'S PROBLEMS BUT A GE SPOKESWOMAN SAYS THAT ISN'T IN THE CARDS AND THAT THE 57YEAROLD EXECUTIVE PLANS TO END HIS CAREER AT GE MORE LIKELY CANDIDATES ARE THE DOZEN OR SO EXECUTIVES BELOW MR WELCH AMONG THE BRIGHTEST STARS GE FINANCIAL SERVICES CHAIRMAN GARY WENDT AND JOHN OPIE HEAD OF GE'S RENOWNED LIGHTING BUSINESS ONE CAUTION FOR IBM STRONG EXECUTIVES IN GE'S SECOND TIER WILL BE TOUGH TO DISLODGE SINCE THEY'RE ALL RACING FOR A CHANCE TO SUCCEED MR WELCH GEORGE FISHER CHAIRMAN MOTOROLA INC IN A DECEMBER INTERVIEW FORMER IBM CHAIRMAN THOMAS J WATSON JR SINGLED OUT MOTOROLA AS A BIG COMPANY THAT CAN MOVE NIMBLY THAT'S A COMMON OBSERVATION THESE DAYS AND REASON ENOUGH TO FIGURE THAT THE 52YEAROLD MR FISHER WILL BE A HEAVYWEIGHT CONTENDER FOR THE IBM CEO SLOT MOTOROLA ALREADY HAS CLOSE LINKS TO IBM INCLUDING A MILESTONE ALLIANCE IN COMPUTER CHIPS A MOTOROLA SPOKESWOMAN SAID MR FISHER THINKS IT'S INAPPROPRIATE TO DISCUSS THE IBM SUCCESSION CHARLES KNIGHT CHAIRMAN EMERSON ELECTRIC CO SEVERAL HIGHTECH EXECUTIVES POINT TO MR KNIGHT AS THE KIND OF OUTSIDE FIGURE WHO COULD RESTORE IBM'S LUSTER EMERSON ISN'T A MAJOR PLAYER IN COMPUTER TECHNOLOGY BUT ITS MOTOR AND COMPRESSOR BUSINESSES INVOLVE INCREASING AMOUNTS OF HIGH TECHNOLOGY AT 57 THE COMBATIVE MR KNIGHT HAS LED EMERSON FOR NEARLY TWO DECADES PROPELLING IT TO EVER HIGHER EARNINGS AND RECORD REVENUES AN EMERSON SPOKESMAN DIDN'T RETURN CALLS FOR COMMENT MORTON MEYERSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER PEROT SYSTEMS CORP MR MEYERSON IS ONE OF THE TOWERING FIGURES IN COMPUTER SERVICES A GROWING FIELD THAT IBM DESPERATELY HOPES WILL HELP IT RECOVER HE HELPED HIS OLD FRIEND H ROSS PEROT BUILD ELECTRONIC DATA SYSTEMS AND THEN WENT WITH HIM TO PEROT SYSTEMS ANOTHER INTRIGUING MEYERSON COHORT MICHAEL DELL THE WUNDERKIND CLONEMAKER WHO HAS BEEN DEVOURING IBM'S LUNCH IN THE PERSONAL COMPUTER BUSINESS HE BROUGHT MR MEYERSON INTO DELL COMPUTER CORP AS A SENIOR ADVISER TWO YEARS AGO MR MEYERSON WASN'T AVAILABLE FOR COMMENT LIKE MR ARMSTRONG OF HUGHES MR CONRADES WAS A TOP CEO CANDIDATE WHO WAS PUSHED OUT OF IBM LAST YEAR BY MR AKERS HIS EXIT WAS MORE HUMILIATING HOWEVER IN A STARTLING PUBLIC DISPLAY MR CONRADES WAS DEMOTED FROM HEAD OF IBM'S US BUSINESS TO A MURKY JOB AND LEFT THE COMPANY SEVERAL MONTHS LATER MANY SENIOR IBMERS FELT MR CONRADES HAD BEEN UNFAIRLY VICTIMIZED FOR MR AKERS'S FAILINGS JOHN YOUNG FORMER CHAIRMAN HEWLETTPACKARD CO AT 60 MR YOUNG MAY BE A BIT OLD TO QUALIFY AS A LEADING PROSPECT FOR IBM'S CEO POSITION BUT HIS TENURE AT HP WAS MARKED BY SAVVY AND STRONG MOVES INTO GROWING AREAS SUCH AS WORKSTATIONS AND LASER PRINTERS AFTER HANDING OVER HIS POSITION AT HP MR YOUNG IS SCOUTING FOR A NEW JOB ACCORDING TO SOME REPORTS HE RECENTLY TURNED DOWN A JOB IN THE CLINTON ADMINISTRATION A HP SPOKESMAN SAID MR YOUNG HASN'T SPOKEN ABOUT THE POSSIBILITY OF BECOMING IBM'S CEO AND THAT HE WASN'T AVAILABLE FOR COMMENT ROBERT ALLEN CHAIRMAN AMERICAN TELEPHONE & TELEGRAPH CO A MOVE FROM MA BELL TO BIG BLUE UNLIKELY BUT AT&T'S OFFICIAL COMMENT STOPS WELL SHORT OF RULING IT OUT BOB HAS MORE THAN ENOUGH TO KEEP HIM OCCUPIED AND CHALLENGED HERE AT AT&T ECKHARD PFEIFFER CHIEF EXECUTIVE OFFICER COMPAQ COMPUTER CORP ON THE SAME DAY THAT MR AKERS ANNOUNCED HE WOULD STEP DOWN AS IBM CEO MR PFEIFFER WAS CROWING ABOUT COMPAQ'S STRONG FOURTHQUARTER RESULTS THE FRUITS OF A TEXTBOOK TURNAROUND AT THE HOUSTON PC MAKER AT THE TIME THE 51YEAROLD MR PFEIFFER WAS QUOTED AS SAYING HE MIGHT BE INTERESTED IN MR AKERS'S JOB A COMPAQ SPOKESMAN NOW SAYS HIS BOSS WASN'T SERIOUS AND WILL STAY AT COMPAQ SAYS CHAIRMAN BEN ROSEN HE'S ONE I HOPE THEY KEEP THEIR HANDS OFF LOUIS GERSTNER CHAIRMAN RJR NABISCO HOLDINGS CORP AFTER NEARLY FOUR YEARS AT RJR THE FORMER AMERICAN EXPRESS PRESIDENT WHO HAS TALKED ABOUT THE IMPORTANCE OF PERIODIC CAREER CHANGES COULD BE DUE FOR ANOTHER MOVE HE KNOWS IBM WELL THROUGH HIS BROTHER RICHARD A RETIRED IBMER ONE HITCH SEARCH COMMITTEE CHIEF JAMES BURKE IS CHAIRMAN OF THE PARTNERSHIP FOR A DRUGFREE AMERICA WOULD HE HIRE A CIGARETTE MOGUL THE CURRENT BETTING MR BURKE'S SEARCH COMMITTEE DOLES OUT ONE OR MORE CONSOLATION PRIZES TO IBMERS TO KEEP MORALE HIGH AND MAKE THE TRANSITION SMOOTH 9302050070 930205 BUSINESS BRIEF AMOCO CORP FORMER EMPLOYEES FILE SUIT OVER ISSUE OF VACATION PAY SIXTEEN FORMER AMOCO CORP EMPLOYEES FILED A CLASS ACTION LAWSUIT AGAINST THE CHICAGO OIL COMPANY ALLEGING THEY WERE CHEATED OUT OF VACATION PAY THE SUIT FILED IN COOK COUNTY ILL CIRCUIT COURT CHARGES AMOCO WITH REFUSING TO PAY UP TO SIX WEEKS OF VACATION PAY EACH TO MORE THAN 3000 WORKERS TERMINATED OVER THE PAST FIVE YEARS AN ATTORNEY FOR THE FORMER EMPLOYEES SAID THE WORKERS ARE OWED 15 MILLION AND THAT HE WOULD SEEK AN ADDITIONAL 15 MILLION IN PUNITIVE DAMAGES A SPOKESMAN FOR AMOCO SAID ALL FORMER EMPLOYEES OF AMOCO CORP INCLUDING THE 16 CITED IN THE LAWSUIT WERE PAID FOR ALL VACATION TIME EARNED UNDER OUR POLICY UPON LEAVING THE COMPANY HE ADDED WE BELIEVE AMOCO'S VACATION POLICY IS IN COMPLIANCE WITH THE ILLINOIS WAGE PAYMENT AND COLLECTION ACT THE LAW THE LAWSUIT ACCUSES THE COMPANY OF VIOLATING AT ISSUE ACCORDING TO A STATEMENT FROM THE ATTORNEY IS WHETHER IT WAS LEGAL FOR AMOCO TO REQUIRE THAT EMPLOYEES BE WORKING AS OF DEC 31 EACH YEAR TO BE PAID FOR VACATION TIME ACCRUED DURING THAT YEAR 9302050069 930205 AMERICAN BARRICK SAYS 4THPERIOD NET NEARLY TRIPLED BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO AMERICAN BARRICK RESOURCES CORP REPORTING A NEAR TRIPLING IN ITS FOURTHQUARTER PROFIT PLANS TO ACCELERATE PRODUCTION GROWTH TO REACH TWO MILLION OUNCES OF GOLD BY 1995 FIVE YEARS SOONER THAN PREVIOUSLY SCHEDULED VIRTUALLY ALL OF THE COMPANY'S INCREASED PRODUCTION WILL COME FROM ITS BIG GOLDSTRIKE MINE IN NEVADA WHERE AMERICAN BARRICK HAS RAISED ITS ESTIMATE OF THE AMOUNT OF GOLD CONTAINED IN EACH TON OF ORE BY 19 A HIGHER GOLD CONTENT MEANS THE COMPANY CAN STEP UP ITS GOLD OUTPUT AND LOWER ITS AVERAGE OPERATING COSTS WHILE MINING THE SAME AMOUNT OF ORE LAST YEAR THE TORONTO MINING CONCERN PRODUCED 13 MILLION OUNCES OF GOLD WITH GOLDSTRIKE CONTRIBUTING 11 MILLION OUNCES OF THIS TOTAL COMPANY OUTPUT IS EXPECTED TO RISE TO 15 MILLION OUNCES THIS YEAR AND THEN TO 17 MILLION OUNCES AND TWO MILLION OUNCES IN THE FOLLOWING TWO YEARS RESPECTIVELY ROBERT SMITH AMERICAN BARRICK'S PRESIDENT AND CHIEF OPERATING OFFICER SAID THAT IN ORDER TO CONTINUE INCREASING ITS PRODUCTION AFTER 1995 THE COMPANY WILL HAVE TO FIND LARGE NEW RESERVES OF GOLD ORE PRODUCTION FROM THE COMPANY'S NEW MEIKLE MINE IN NEVADA DUE TO OPEN IN 1996 WILL LARGELY SUPPLANT EXISTING RESERVES THAT ARE BEING DEPLETED HE SAID THAT LEAVES A VERY BIG CHALLENGE WITH THE COMPANY TO REPLACE RESERVES THAT ARE CURRENTLY BEING MINED SAID BARRY ALLAN A MINING ANALYST AT DEACON BARCLAYS DE ZOETE WEDD LTD IN TORONTO ONE RISK THAT AMERICAN BARRICK FACES IS THAT ANY NEW OREBODY IT DISCOVERS WOULD HAVE A HARD TIME MATCHING THE HIGH QUALITY OF ITS EXISTING GOLD DEPOSITS MR ALLAN SAID BUT MR SMITH SEEMS UNPERTURBED BY THE CHALLENGE WE FEEL VERY STRONGLY THAT THE FINAL CHAPTER ON RESERVES AT GOLDSTRIKE IS YET TO BE WRITTEN HE SAID THE COMPANY CONTINUES TO EXPLORE POSSIBLE NEW GOLD DEPOSITS IN THE VICINITY OF ITS MAIN GOLDSTRIKE OPERATION IT ALSO RECENTLY VENTURED FOR THE FIRST TIME BEYOND THE US AND CANADA TO EXPLORE FOR GOLD IN MEXICO AMERICAN BARRICK'S NET INCOME FOR THE QUARTER TOTALED 655 MILLION OR 47 CENTS A SHARE COMPARED WITH 241 MILLION OR 18 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE MORE THAN DOUBLED TO 200 MILLION FROM 891 MILLION AS GOLD PRODUCTION ROSE TO 487000 OUNCES FOR THE FULL YEAR AMERICAN BARRICK HAD PROFIT OF 1749 MILLION OR 124 A SHARE UP FROM 924 MILLION OR 68 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 58 TO 5404 MILLION FROM 3447 MILLION PRODUCTION ROSE 68 TO 13 MILLION OUNCES OF GOLD AMERICAN BARRICK SHARES CLOSED YESTERDAY AT 30875 UP 625 CENTS ON THE NEW YORK STOCK EXCHANGE 9302050068 930205 MONTCLAIR BANCORP HALTS SPECIAL HOLDERS MEETING NEW YORK MONTCLAIR BANCORP INC ABRUPTLY ADJOURNED A SPECIAL SHAREHOLDERS MEETING THAT HAD BEEN CALLED TO VOTE ON AN AGREEMENT FOR THE COMPANY TO BE ACQUIRED CITING PROBLEMS IN ITS PROXY MATERIALS THE MONTCLAIR NJ BANK HOLDING COMPANY'S BOARD SCHEDULED THE MEETING TO RESUME FEB 18 SEVERAL SHAREHOLDERS RAILED AGAINST THE COMPANY FOR AGREEING TO BE ACQUIRED BY COLLECTIVE BANCORP INC EGG HARBOR NJ FOR 2415 A SHARE OR A TOTAL OF 58 MILLION THE AMOUNT REPRESENTED ONLY ABOUT 88 OF MONTCLAIR BANCORP'S BOOK VALUE AND MANY OF THE ANGRY STOCKHOLDERS DIDN'T THINK MANAGEMENT HAD THEIR BEST INTERESTS IN MIND IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S SHARES CLOSED AT 23625 UNCHANGED IT WAS ALMOST LIKE A RIOT AT THE MEETING SAID JOSEPH POGANOWSKI WHOSE FAMILY OWNS 1680 SHARES OF MONTCLAIR STOCK PEOPLE WERE YELLING AND MANAGEMENT KEPT DISAGREEING WITH US BUT THEY WOULDN'T SAY WHY MONTCLAIR BANCORP WHICH WOULD NOT COMMENT ON THE TENOR OF THE SPECIAL MEETING MAINTAINED THAT THE ACQUISITION PRICE IS FAIR CITING A FINANCIAL ANALYSIS PREPARED FOR THE PROXY STATEMENT 9302050067 930205 INTERNATIONAL WORLD ECONOMY CLINTON MOVES IN NAME OF FREE TRADE MAY BE INVITING DETERIORATION INSTEAD BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN 1930 PRESIDENT HERBERT HOOVER SIGNED THE INFAMOUS SMOOTHAWLEY TARIFF BILL AND THE WORLD HAS REGRETTED IT EVER SINCE IT BOOSTED THE BASIC US IMPORT TARIFF RATE TO 50 BROUGHT QUICK EUROPEAN RETALIATION AND SPED ALONG THE GREAT DEPRESSION WHICH RESHAPED WESTERN HISTORY MOSTLY FOR THE WORST SINCE THEN STATESMEN HAVE INSISTED THEY LEARNED THEIR LESSON THAT THEY CAN NEVER SOLVE ECONOMIC PROBLEMS BY BUILDING TRADE BARRIERS BUT THE LESSON DOESN'T ALWAYS STICK AS THE CLINTON ADMINISTRATION HAS SHOWN IN THE PAST TWO WEEKS GOVERNMENTS GET DRAWN INTO TAKING STEPS THAT RESTRICT TRADE USUALLY TO PUNISH THE UNFAIR TRADE PRACTICES OF SOMEBODY ELSE IT'S ALL DONE IN THE NAME OF FREE TRADE AND ALWAYS WITH REGRET BUT EACH MOVE FURTHER RESTRICTS YET ANOTHER PIECE OF INTERNATIONAL COMMERCE AND INVITES REPRISALS US COMPANIES WITH FOREIGN MARKETS AND MANY FOREIGN ONES ACTIVE IN THE US COULD SUFFER JEFFREY E GARTEN OF COLUMBIA UNIVERSITY'S GRADUATE BUSINESS SCHOOL ARGUES THAT THE CLINTON ADMINISTRATION SHOULD BE FOCUSING MORE THAN IT HAS ON THE IMPORTANCE OF OPEN TRADE IF THAT NEGLECT OF THE ISSUE CONTINUES WE RISK HAVING A VERY DRASTIC DETERIORATION IN WORLD TRADE HE WARNS EVEN AS THE US ECONOMY IMPROVES THE THREATS TO TRADE HURT CONFIDENCE INTERNATIONALLY THE WORLD ECONOMY IS SLOWLY STARTING TO TURN AROUND SAYS JIM DAVIS CHIEF EXECUTIVE OFFICER OF NEW BALANCE A BOSTON ATHLETIC SHOE MAKER IF THESE BARRIERS GO UP THE GLOBAL ECONOMY THAT WE'VE ALL TALKED ABOUT WON'T BE PRESIDENT CLINTON SEEMS TO BE WAKING UP TO THE IMPORTANCE OF TRADE AFTER A PERIOD THAT CRITICS VIEW AS EITHER BENIGN OR MALIGN NEGLECT OPINIONS VARY THE NEW ADMINISTRATION HAS MANAGED TO EXACERBATE OLD DISPUTES WITH ITS MAIN TRADING PARTNERS THE EUROPEAN COMMUNITY AND JAPAN IT MAY ABANDON A 13NATION AGREEMENT MEANT TO OPEN MORE GOVERNMENT CONTRACTING TO INTERNATIONAL COMPETITION A MULTIBILLIONDOLLAR MARKET PROTRACTED TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT ARE SET TO EXPIRE AND IT'S UP TO THE ADMINISTRATION AND THE EUROPEANS TO REVIVE THEM AND ALTHOUGH THE ADMINISTRATION HAS BEGUN THINKING ABOUT HOW TO RESTART THE GATT TALKS ITS INDIVIDUAL DECISIONS AREN'T CONDUCIVE TO A SMOOTH NEGOTIATING ATMOSPHERE THE LATEST MOVE IS A CONDITIONAL DECISION TO OUTLAW FEDERAL PURCHASES OF EUROPEAN GOODS FOR WATER ENERGY TRANSPORT AND TELECOMMUNICATIONS PROJECTS THIS RESPONDS TO AN EC RULE THAT GIVES EC COMPANIES AN ADVANTAGE IN CONTRACT BIDDING THERE THE EUROPEANS SAY THEIR RULE IS A NEGOTIATING CARD BUT THEY'VE REFUSED TO PLAY IT SO THE WHITE HOUSE DECIDED TO BOTH GET MAD AND GET EVEN MICKEY KANTOR THE US TRADE REPRESENTATIVE COMPLAINS THAT US SUPPLIERS HAVE LONG SUFFERED SIGNIFICANT DAMAGE FROM THE RESTRICTIONS PLACED ON THEM IN EUROPEAN MARKETS AND SO THEY HAVE STATEOWNED UTILITIES THERE HAVE DOLED OUT FAT CONTRACTS TO LOCAL SUPPLIERS WHILE PROTECTING THEM FROM FOREIGNERS FOR EXAMPLE SIEMANS AG LONG MADE MOST GERMAN TELEPHONES EVEN WHEN OTHERS COULD OFFER BETTER PRICES AND QUALITY THE EC IS CHANGING THAT WITHIN ITS BORDERS BUT IT STILL GIVES EUROPEAN COMPANIES A 3 PRICE ADVANTAGE OVER RIVALS BIDDING FROM THE OUTSIDE BUT THE US HAS SIMILAR RESTRICTIONS IN ITS MANY LOCAL BUY AMERICA LAWS WHEN EFFORTS TO SCRAP SOME OF THESE EC AND US RULES FAILED WASHINGTON ISSUED ITS BUYING BAN THAT SENDS ABSOLUTELY THE WRONG SIGNAL TO THE WORLD ECONOMY AND THREATENS GLOBAL RECOVERY WARNED THE DANISH FOREIGN MINISTER A FRENCH MINISTER SUGGESTED THE EC MAY NOW DISCRIMINATE EVEN MORE CRUDELY AGAINST OUTSIDERS AND WHILE THE CLINTON WHITE HOUSE REPORTEDLY CONCERNED THAT IT'S GETTING A PROTECTIONIST LABEL IS TRYING TO SHOW MORE OF A FREETRADE BENT IT SHOULD PAY ATTENTION TO THE FRAYING USJAPANESE RELATIONSHIP WASHINGTON HAS SLAPPED PUNITIVE TARIFFS ON JAPANESE AMONG OTHER STEEL EXPORTS AND MAY DO THE SAME FOR MINIVANS THE AUTO INDUSTRY WANTS PENALTIES AGAINST ALL FOREIGN CAR IMPORTS ESPECIALLY FROM JAPAN A SEMICONDUCTOR ROW FESTERS US COMPANIES CONTEND JAPAN WON'T GRANT BROAD MARKET ACCESS IT PROMISED A GOVERNMENT REPORT LISTED 34 AREAS WHERE MORE NEEDS TO BE DONE ALL THIS THREATENS TO SOUR THE ENTIRE USJAPAN RELATIONSHIP WHICH EXTENDS FAR BEYOND NARROW TRADE ISSUES TO VITAL POLITICAL SECURITY AND ECONOMIC MATTERS THE FAULT ISN'T ALL AMERICA'S THE ECONOMIES OF EUROPE AND JAPAN ARE WEAK AND SO ARE THEIR LEADERS THEY QUIBBLE AND VACILLATE BEFORE TOUGH PROBLEMS AND SEEM SHORT ON COURAGE OR FORESIGHT FOR EXAMPLE EUROPEANS LET NARROW FARM ISSUES STALL GATT TALKS FOR YEARS AND THEIR RELUCTANCE TO FULLY OPEN UP TO GOODS FROM THE FORMER SOVIET EMPIRE IS ESPECIALLY EGREGIOUS THE JAPANESE PRIME MINISTER MEANTIME IS SORELY WEAKENED BY SCANDAL AND DIVISION IN HIS RULING PARTY SO THE US HAS A DISPROPORTIONATE LEADERSHIP ROLE LIKE IT OR NOT BILL CLINTON HOPES A RESTORED US PROSPERITY WILL LET SOME TRADE DISPUTES FADE AWAY WHILE GETTOUGH TACTICS ACTUALLY SETTLE OTHERS BUT US GROWTH RELIES EVER MORE ON HEALTHY EXPORTS IF THE PRESIDENT ISN'T CAREFUL HIS CONDUCT OF OVERSEAS COMMERCE COULD SABOTAGE THE ENTIRE PLAN 9302050066 930205 WALL STREET EMBRACES CLIENTSERVER FIELD SMALL SOFTWARE STOCKS SOAR AFTER INITIAL OFFERINGS BY LAURIE DELATER WEEKS SPECIAL TO THE WALL STREET JOURNAL NEW YORK PLATINUM SOFTWARE CORP HAS STRUCK GOLD ON WALL STREET THE FINANCIAL SOFTWARE COMPANY HAS SEEN ITS STOCK PRICE NEARLY TRIPLE SINCE IT WENT PUBLIC IN OCTOBER NOT BAD CONSIDERING THAT ALL THE INVESTOR INTEREST IS IN A PRODUCT LINE THAT JUST BEGAN SHIPPING LAST SEPTEMBER AND GENERATED ONLY 13 MILLION IN THE LATEST QUARTER PLATINUM IS NOT ALONE OTHER SOFTWARE COMPANIES LIKE PLATINUM THAT ARE SEEN AS EARLY IN CAPITALIZING ON AN EMERGING TREND IN SOCALLED CLIENTSERVER COMPUTING HAVE SEEN THEIR STOCKS SOAR AS WELL AN ANALOGY IS THAT THERE ARE LOTS OF NEW WAVES IN TECHNOLOGY SAYS JAY HOAG A MANAGING DIRECTOR OF CHANCELLOR CAPITAL MANAGEMENT CLIENTSERVER APPEARS TO BE A TIDAL WAVE CLIENTSERVER SYSTEMS MELD THE BEST QUALITIES OF OLDER PROPRIETARY MAINFRAME OR MINICOMPUTER SYSTEMS AND NEWER NETWORKS OF DESKTOP COMPUTERS INTO AN INTEGRATED NETWORK CORPORATE AMERICA IS AT LEAST DABBLING WITH CLIENTSERVER TECHNOLOGY ANALYSTS SAY BECAUSE OLDER BIGIRON SYSTEMS ARE NO LONGER VIEWED AS COSTEFFECTIVE OR FLEXIBLE ENOUGH FOR TODAY'S NEEDS BUT WHILE CHEAPER AND EASIER TO USE PC NETWORKS CAN'T YET TAKE ADVANTAGE OF CORPORATEWIDE DATABASES OR MEET PERFORMANCE STANDARDS THAT COMPLEX COMPUTING TASKS DEMAND OLDER BUSINESS APPLICATION SOFTWARE MUST BE OVERHAULED TO FIT THE CLIENTSERVER DESIGN OR BE REPLACED BY NEW PROGRAMS CREATED FROM SCRATCH HISTORICALLY IT'S VERY DIFFICULT FOR AN ESTABLISHED COMPANY TO REMAKE ITSELF SAYS MR HOAG SO MY BET WOULD BE ON THE NEW COMPANIES THAT ARE EMERGING INDUSTRY ANALYSTS ARE QUICK TO CAUTION THAT CUSTOMERS' MIGRATION TO CLIENTSERVER IS STILL IN THE EARLY STAGES AND THAT THE INITIAL BENEFICIARIES OF THE TREND WILL FIND THEIR NICHE MARKETS INCREASINGLY CROWDED BY BIGGER INDUSTRY PLAYERS FOR NOW THOUGH WALL STREET DOESN'T WANT TO BE LEFT BEHIND PLATINUM'S IPO WAS FOLLOWED A MONTH LATER BY BRISK DEMAND FOR PEOPLESOFT INC WHICH MARKETS HUMAN RESOURCES SOFTWARE PROGRAMS DESIGNED FOR CLIENTSERVER COMPUTING INVESTORS' APPETITE FOR SUCH ISSUES REMAINED STRONG THIS WEEK ON TUESDAY UNDERWRITERS SOLD SHARES IN POWERSOFT CORP WHOSE SOFTWARE TOOLS ARE USED TO CREATE CLIENTSERVER PROGRAMS AT 20 EACH THE STOCK CLOSED YESTERDAY AT 38 THAT SET THE TONE FOR UNDERWRITERS PLANNING AN INITIAL OFFERING IN A POWERSOFT COMPETITOR GUPTA CORP ITS STOCK OFFERING WAS BOOSTED IN SIZE BY 10 TO 22 MILLION SHARES AND AND WAS PRICED AT 18 A SHARE SIGNIFICANTLY HIGHER THAN THE INITIALLY EXPECTED PRICE OF 10 TO 12 PRIVATELY HELD AVALON SOFTWARE INC WHICH MARKETS CLIENTSERVER SOFTWARE FOR MANUFACTURING COMPANIES DOESN'T PLAN ON GOING PUBLIC ANYTIME SOON ALTHOUGH IT'S BEEN PURSUED SAYS MADHAVAN RANGASWAMI VICE PRESIDENT OF MARKETING WE'VE BEEN VISITED BY ABOUT A HALF DOZEN VENTURE CAPITALISTS A COUPLE OF BANKERS AND A DOZEN HARDWARE COMPANIES THAT ALL WANT TO PARTICIPATE HE SAYS FORRESTER RESEARCH INC A CAMBRIDGE MASS CONSULTANCY ESTIMATES THAT THE WORLDWIDE CLIENTSERVER SOFTWARE MARKET WILL EXPAND TO 28 BILLION IN 1996 FROM 25 BILLION LAST YEAR LAST YEAR'S ESTIMATE INCLUDES REVENUES OF 350 MILLION FROM BUSINESS APPLICATION SOFTWARE 603 MILLION FROM APPLICATION DEVELOPMENT TOOLS AND 630 MILLION FROM DATABASES PEOPLESOFT BASED IN WALNUT CREEK CALIF WAS FOUNDED IN 1987 TO DEVELOP BUSINESS APPLICATIONS BASED ON THE LATEST TECHNOLOGIES ITS HUMANRESOURCES SOFTWARE FOR CLIENTSERVER FIRST SHIPPED IN LATE 1988 THE COMPANY ALSO MARKETS TOOLS THAT ENABLE CUSTOMERS TO TAILOR THEIR APPLICATIONS AND LAST OCTOBER PEOPLESOFT BEGAN TO SELL THE FIRST IN A FAMILY OF FINANCIAL SOFTWARE TOO SALES HAVE GROWN RAPIDLY WITH REVENUE UP 85 TO 316 MILLION LAST YEAR ITS STOCK TRADED OVER THE COUNTER HAS MORE THAN DOUBLED FROM ITS INITIAL OFFERING PRICE CLOSING AT 38 A SHARE IN OVERTHECOUNTER TRADING YESTERDAY 79 TIMES LAST YEAR'S EARNINGS OF 48 CENTS A SHARE THE COMPANY'S HIGH LEVEL OF ACCOUNTS RECEIVABLE MEASURED IN DAYS OF SALES OUTSTANDING SUGGESTS CUSTOMERS ARE CAUTIOUS ABOUT INVESTING WHAT CAN BE A FEW HUNDRED THOUSAND DOLLARS IN PEOPLESOFT'S SYSTEM SAYS ONE TECHNOLOGY INVESTOR WHO ASKED NOT TO BE IDENTIFIED IT TELLS YOU THAT PEOPLE PLAY WITH IT FOR A LONG TIME BEFORE PAYING THE INVESTOR SAYS PLATINUM SOFTWARE BASED IN IRVINE CALIF DIDN'T START OFF FRESH IN CLIENTSERVER COMPUTING THE COMPANY CONTINUES TO MARKET AN OLDER ACCOUNTING SYSTEM CALLED PLATINUM FOR PC NETWORKS THOUGH THAT'S NOT WHERE MUCH OF ITS FUTURE GROWTH IS EXPECTED TO COME FROM DOMESTIC UNIT SHIPMENTS OF THE OLDER LINE WERE UP ONLY SLIGHTLY IN THE LATEST QUARTER SAYS CHIEF FINANCIAL OFFICER JON ERICKSON ALTHOUGH INTERNATIONAL SHIPMENTS GREW SHARPLY AND THE COMPANY BENEFITED FROM A NEW PRODUCT PREMIER ANALYSTS EXPECT THE NEW PRODUCT LINE SEQUEL TO PLATINUM WHICH CARRIES HIGHER PRICES AND PROFIT MARGINS TO FUEL THE COMPANY'S FUTURE GROWTH THROUGH JUNE PLATINUM WILL BE ROLLING OUT THE FIRST MEMBERS OF SEQUEL TO PLATINUM MR ERICKSON SAYS THIS YEAR THE COMPANY PLANS TO DOUBLE ITS DOMESTIC SALES TEAMS FOR THE NEW PRODUCT LINE HE ADDS INVESTORS HAVE BID UP PLATINUM'S SHARES AS HIGH AS 4150 EACH FROM THE IPO PRICE OF 14 AN ADDITIONAL OFFERING OF 25 MILLION SHARES WAS PRICED AT 38 A SHARE PLATINUM'S STOCK FINISHED AT 3925 YESTERDAY DOWN 125 IN NATIONAL IN OVERTHECOUNTER TRADING OUR PERSPECTIVE IS THAT WE DON'T EXPECT TO SEE COMPETITION FOR A LONG TIME MR ERICKSON SAYS BUT WE WOULD THINK THAT ORACLE AND DUN & BRADSTREET ARE GOING TO BE TWO COMPANIES THAT WE'LL NEED TO KEEP OUR EYES ON RELATIONAL DATABASE VENDOR SYBASE INC WHICH HAD ITS IPO IN AUGUST 1991 PIONEERED MANY TECHNOLOGY FEATURES THAT ENHANCE CLIENTSERVER COMPUTING ANALYSTS SAY SYBASE HAS BEEN THE LEADING FLAGWAVER IN THE CLIENTSERVER WORLD SAYS NEAL HILL SENIOR ANALYST AT FORRESTER RESEARCH SYBASE'S REVENUE ROSE 65 TO 265 MILLION LAST YEAR AND ITS STOCK MORE THAN DOUBLED OVER THE PAST YEAR CLOSING AT 62 IN OVERTHECOUNTER TRADING YESTERDAY OR ROUGHLY 65 TIMES LAST YEAR'S EARNINGS OF 96 CENTS A SHARE ITS SUCCESS DIDN'T GO UNNOTICED OTHER RELATIONAL DATABASE CONCERNS INCLUDING ORACLE HAVE INCORPORATED SIMILAR TECHNOLOGIES INTO THEIR PRODUCTS IT'S FAIR TO SAY THEIR LEAD IS EVAPORATING MR HILL SAYS OF SYBASE BUT SYBASE HAS ANNOUNCED SYSTEM 10 ITS NEXT GENERATION OF PRODUCTS MR HILL SAYS DUE IN THE SECOND HALF OF THIS YEAR SYSTEM 10 SHOULD REESTABLISH AN ADVANTAGE FOR THEM MR HILL SAYS 9302050065 930205 TIME WARNER'S HBO SET TO AIR PAY TV FROM SINGAPORE TO OTHER ASIA MARKETS BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE ON THE AIR HERE SINCE JULY HOME BOX OFFICE INC EXPECTS TO SIGN A DEAL THIS MONTH TO ENTER THAILAND IS OPTIMISTIC ABOUT GETTING INTO TAIWAN AND THE PHILIPPINES BEFORE MIDYEAR AND COULD START BEAMING ITS WAY INTO HONG KONG HOMES IN THE SECOND HALF LIKE OTHER US PAYTV CONCERNS HBO IS LOOKING OVERSEAS FOR GROWTH BECAUSE ITS DOMESTIC MARKET IS MATURING SAYS WILLIAM G HOOKS MANAGING DIRECTOR OF HBO ASIA WITH TWO BILLION POTENTIAL VIEWERS ASIA IS AN ESPECIALLY ALLURING PRIZE RELATIVE TO OTHER EMERGING PAYTV MARKETS SUCH AS LATIN AMERICA AND EASTERN EUROPE BUT DIFFERENCES IN LANGUAGE CULTURE REGULATION AND TECHNOLOGY COMPLICATE THE PICTURE IN ALL THESE MARKETS AND THEY ARE CROWDED WITH HOMEGROWN COMPETITORS EAGER TO PROFIT FROM THE WORLD'S APPETITE FOR MORE TELEVISION INDEED HBO'S EFFORTS IN ASIA ILLUSTRATE SOME OF THE CHALLENGES FACING US AND OTHER CABLE TV AND SATELLITE TV CONCERNS INTRODUCING PAY TV AND ADVERTISER SUPPORTED FREE SERVICES IN FOREIGN MARKETS THERE WERE A LOT OF THINGS WE DIDN'T KNOW BEFORE WE GOT HERE MR HOOKS SAYS LEANING BACK IN HIS CHAIR IN HBO'S NEW OFFICES IN A SINGAPORE INDUSTRIAL PARK A VETERAN HBO EXECUTIVE MR HOOKS ARRIVED IN SINGAPORE IN OCTOBER 1991 AFTER SEVERAL MONTHS OF DISCUSSIONS BETWEEN THE TIME WARNER INC UNIT AND GOVERNMENTOWNED SINGAPORE BROADCASTING CORP THE ISLAND REPUBLIC WHICH IS TRYING TO POSITION ITSELF AS A REGIONAL HUB FOR MEDIA AND MARKETING BUSINESSES APPROACHED HBO IN 1991 BECAUSE IT WANTED TO START A PAYTV SERVICE LAST JUNE SINGAPORE CABLEVISION WHICH IS OWNED BY SBC AND A SINGAPORE GOVERNMENT AGENCY LAUNCHED A THREECHANNEL PAYTV SYSTEM FEATURING A MOVIE CHANNEL SUPPLIED BY HBO A NEWS CHANNEL AND A CHINESELANGUAGE ENTERTAINMENT CHANNEL FOR NOW THE SERVICE IS BROADCAST IN SCRAMBLED FORM OVER THE AIR SUBSCRIBERS MUST USE A DECODER IF SINGAPORE BUILDS A HARDWIRE CABLE SYSTEM THE SERVICE CAN BE DELIVERED BY CABLE SINGAPORE WITH A POPULATION OF 28 MILLION HAS 685000 HOUSEHOLDS OF WHICH 550000 OWN TELEVISIONS WHEN HBO SET UP SHOP HERE CLEARLY WE WEREN'T JUST COMING TO SINGAPORE MR HOOKS SAYS SINGAPORE IS JUST THE FIRST OF SEVERAL COUNTRIES HBO IS TARGETING IN ASIA IT HAS CREATED AN ASIAN VERSION OF ITS NAMESAKE PAYTV MOVIE CHANNEL THE CHANNEL IS PACKAGED IN SINGAPORE AND HBO USES INDONESIA'S PALAPA SATELLITE TO DELIVER THE SERVICE DISTRIBUTORS IN EACH COUNTRY THEN RETRANSMIT THE CHANNEL TO SUBSCRIBERS WHERE PERMITTED HBO MAY ALSO SELL THE SCRAMBLED CHANNEL DIRECTLY TO OWNERS OF HOME SATELLITE DISHES THE POTENTIAL MARKET WITHIN REACH OF THE PALAPA SATELLITE IS VAST MR HOOKS SAYS THERE ARE AN ESTIMATED 731 MILLION HOUSEHOLDS IN TAIWAN HONG KONG THE PHILIPPINES THAILAND MALAYSIA SINGAPORE AND INDONESIA AND ABOUT HALF OR 379 MILLION OWN TELEVISIONS HBO IS STUDYING INDIA AND OTHER MARKETS OUTSIDE THE REACH OF THE PALAPA SATELLITE AND MAY RENT SPACE ON OTHER SATELLITES IN THE FUTURE HBO ASIA IS ALREADY ACTIVE IN JAPAN THROUGH A TIME WARNER JOINT VENTURE IN SINGAPORE HBO ASIA COSTS 3495 SINGAPORE DOLLARS A MONTH US2123 THE THREECHANNEL PACKAGE INCLUDING HBO COSTS S4495 A MONTH MR HOOKS SAYS IT'S TOO EARLY TO TELL HOW MANY SUBSCRIBERS HBO WILL SIGN UP IN SINGAPORE HE DECLINES TO COMMENT ON THE NUMBER OF SUBSCRIBERS HBO ASIA HAS NOW HBO ASIA EXPECTS TO SIGN A FINAL AGREEMENT WITH A THAI PAYTV OPERATOR THIS MONTH MR HOOKS SAYS TAIWAN AND THE PHILIPPINES WOULD BE THE NEXT LOGICAL MARKETS HE SAYS IN HONG KONG HBO IS IN TALKS WITH WHARF CABLE A UNIT OF CONGLOMERATE WHARF HOLDINGS LTD THAT IS EXPECTED TO WIN A 12YEAR CABLE FRANCHISE FROM THE GOVERNMENT SHORTLY THE CABLE INDUSTRY IS IN ITS INFANCY IN ASIA BUT THAT DOESN'T BOTHER HBO MR HOOKS SAYS NOTING THAT THE US CABLE INDUSTRY WASN'T MUCH MORE DEVELOPED WHEN HBO WAS LAUNCHED IN 1972 AS IT STANDS PAYTV DISTRIBUTION IN ASIA IS CHAOTIC IN TAIWAN THERE ARE ABOUT ONE MILLION SUBSCRIBERS TO ILLEGAL CABLE SYSTEMS MANY OF WHICH OFFER PIRATED JAPANESE SATELLITE CHANNELS IN THE PHILIPPINES WHERE CABLE IS JUST GETTING STARTED THERE ARE ABOUT 100000 CABLE SUBSCRIBERS PRIVATE OWNERSHIP OF SATELLITE DISHES IS BANNED IN MALAYSIA AND SINGAPORE BUT TOLERATED IN INDONESIA WHERE TENS OF THOUSANDS OF DISHES DOT THE LANDSCAPE KEEPING TRACK OF AND TRYING TO FIGURE OUT EACH COUNTRY'S REGULATIONS CONSUMES A LOT OF TIME MR HOOKS SAYS ACQUIRING THE RIGHTS TO SHOW FILMS ON HBO ASIA ADDS A FURTHER COMPLICATION HBO HAS TO NEGOTIATE PANASIAN RIGHTS TO FILMS PREVIOUSLY MOVIE STUDIOS SOLD FILMS TO BROADCASTERS COUNTRYBYCOUNTRY IN ASIA HBO HAS A PANASIAN DEAL WITH SISTER COMPANY WARNER BROS AND JUST SIGNED SUCH A PACT WITH PARAMOUNT PICTURES A UNIT OF PARAMOUNT COMMUNICATIONS INC MR HOOKS SAYS HBO EXPECTS TO SIGN A SIMILAR PANASIAN AGREEMENT WITH A THIRD MAJOR HOLLYWOOD STUDIO IN THE NEXT THREE TO SIX MONTHS HBO ALREADY HAS PANASIAN DEALS WITH ABOUT TWO DOZEN SMALLER STUDIOS HE SAYS ONCE THE TECHNICAL AND LEGAL PROBLEMS ARE SOLVED A MORE FUNDAMENTAL CHALLENGE REMAINS THE MOST IMPORTANT QUESTION IS LANGUAGE MR HOOKS SAYS IN ONE SENSE ENGLISH IS THE ONLY PANASIAN LANGUAGE ACROSS THE PALAPA SATELLITE FOOTPRINT BUT ENGLISH OBVIOUSLY ISN'T MOST ASIANS' FIRST LANGUAGE HBO ASIA PLANS TO ADD SUBTITLES TO ITS MOVIE CHANNEL THAT IT CAN TRANSMIT VIA MULTIPLE FEEDS SO THAT DISTRIBUTORS CAN PICK UP AND ADD THE CORRECT SET OF SUBTITLES IN THEIR COUNTRY 9302050064 930205 BUSINESS BRIEF GILLETTE CO QUARTERLY NET CLIMBED 18 SENSOR PRODUCTS ARE CITED GILLETTE CO BOOSTED BY STRONG SALES OF ITS SENSOR SHAVING PRODUCTS POSTED AN 18 RISE IN FOURTHQUARTER NET INCOME THE BOSTON COMPANY'S NET WAS 1352 MILLION OR 61 CENTS A SHARE COMPARED WITH 1143 MILLION OR 52 CENTS A SHARE IN THE YEARAGO QUARTER SALES WERE 151 BILLION AN INCREASE OF 12 FROM 134 BILLION THE CONTINUED SUCCESS OF THE SENSOR RAZOR WAS BOLSTERED BY THE GROWTH OF THE LADY SENSOR LINE THE LADY SENSOR RESULTS ARE JUST EXTRAORDINARY SAID BRENDA LEE LANDRY AN ANALYST WITH MORGAN STANLEY & CO ESTIMATING THAT THE WOMEN'S SENSOR SALES TOPPED 40 MILLION IN THE SECOND HALF OF 1992 THIS IS THE HOTTEST PRODUCT EVER IN THE WOMEN'S SHAVER MARKET SHE EXPECTS THOSE SALES TO MORE THAN DOUBLE IN 1993 9302050063 930205 BUSINESS BRIEF CHRYSLER CORP KERKORIAN MAINTAINS STAKE OF 97 FOLLOWING OFFERING CALIFORNIA INVESTOR KIRK KERKORIAN MAINTAINED A 97 STAKE IN CHRYSLER CORP BY BUYING FOUR MILLION OF THE AUTO MAKER'S COMMON SHARES DURING THE COMPANY'S 178 BILLION OFFERING THIS WEEK CHRYSLER SOLD 46 MILLION SHARES TUESDAY AT 3875 A SHARE BUT DEMAND FOR THE STOCK IS RAISING THE POSSIBILITY THAT THE COMPANY MAY EXPAND THE OFFER BY SIX MILLION SHARES SAID A SPOKESMAN FOR FIRST BOSTON CORP CHRYSLER HAS A MONTH TO EXERCISE THAT OPTION CHRYSLER COMMON SHARES CLOSED YESTERDAY AT 3975 UP 75 CENTS IN NEW YORK STOCK EXCHANGE TRADING MR KERKORIAN HOLDS 32 MILLION OF CHRYSLER'S 331 MILLION SHARES OUTSTANDING AFTER BUYING 87 OF THE TUESDAY OFFERING SEPARATELY CHRYSLER ELECTED ITS VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER THOMAS G DENOMME TO ITS BOARD OF DIRECTORS EXPANDING THE BOARD TO 15 THE CALIFORNIA AIR RESOURCES BOARD TOLD CHRYSLER YESTERDAY THAT ITS V8 ENGINE FOR THE DODGE B350 RAM VAN AND WAGON IS THE FIRST TRUCK ENGINE TO REACH THE STATE'S 1998 STANDARDS FOR ENGINE EMISSIONS 9302050062 930205 BUSINESS BRIEF AFFILIATED PUBLICATIONS INC NET INCOME OF 118 MILLION IS POSTED FOR FOURTH PERIOD AFFILIATED PUBLICATIONS INC REPORTED A FOURTHQUARTER PROFIT COMPARED WITH A LOSS IN THE YEAREARLIER QUARTER WHICH INCLUDED A CHARGE FOR THE COMPANY'S RESTRUCTURING OF ITS INVESTMENT IN BPI COMMUNICATIONS INC A PUBLISHER OF SPECIALTY MAGAZINES THE BOSTONBASED PUBLISHER OF THE BOSTON GLOBE REPORTED QUARTERLY NET INCOME OF 118 MILLION OR 17 CENTS A SHARE FOR THE QUARTER COMPARED WITH THE YEAREARLIER LOSS OF 68 MILLION OR 97 CENTS A SHARE DUE TO THE 993 MILLION CHARGE FOURTHQUARTER OPERATING PROFIT WAS 202 MILLION A 38 INCREASE OVER OPERATING PROFIT OF 146 MILLION IN THE YEARAGO QUARTER DUE TO A 91 RISE IN CLASSIFIED ADVERTISING THE COMPANY HAD REVENUE FOR THE QUARTER OF 1099 MILLION A 39 INCREASE FROM REVENUE OF 1058 MILLION IN THE YEAREARLIER PERIOD FOR THE YEAR AFFILIATED'S REVENUE WAS 414 MILLION UP 54 FROM REVENUE OF 3928 MILLION IN THE PREVIOUS YEAR FOR 1992 THE COMPANY REPORTED NET INCOME OF 141 MILLION OR 20 CENTS A SHARE COMPARED WITH A NET LOSS OF 669 MILLION OR 95 CENTS A SHARE IN 1991 DUE TO THE RESTRUCTURING CHARGE THE COMPANY SAID ITS 1992 NET INCOME WAS REDUCED BY 138 MILLION OR 20 CENTS A SHARE DUE PRIMARILY TO A ONETIME CHARGE FOR POSTRETIREMENT BENEFITS 9302050061 930205 BUSINESS BRIEF BELLSOUTH CORP GERMAN GOVERNMENT AWARDS THIRD CELLULAR PHONE LICENSE BELLSOUTH CORP ATLANTA SAID THE GERMAN GOVERNMENT AWARDED A LICENSE TO BUILD A DIGITAL CELLULAR TELEPHONE NETWORK TO A CONSORTIUM IN WHICH IT HAS A 21 STAKE THE LICENSE TO BUILD GERMANY'S THIRD CELLULAR SYSTEM WAS WON BY EPLUS WHICH EXPECTS TO SPEND 12 BILLION TO BUILD AND OPERATE THE NETWORK GERMANY HAS 79 MILLION POTENTIAL SUBSCRIBERS OF WHOM 62 MILLION RESIDE IN THE FORMER WEST GERMANY AN AREA THAT BOASTS HIGH PER CAPITA INCOME LEVELS LOW INFLATION AND A DENSE POPULATION SAID JOHN L CLENDENIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BELLSOUTH BELLSOUTH WILL COMPETE AGAINST THE GERMAN NATIONAL PHONE COMPANY'S CELLULAR SYSTEM AND A PRIVATE SYSTEM OWNED BY A CONSORTIUM THAT INCLUDES SAN FRANCISCOBASED PACIFIC TELESIS GROUP OTHER MEMBERS OF THE EPLUS GROUP ARE THYSSEN AG A GERMAN INDUSTRIAL SERVICE AND TRADING GROUP WHICH OWNS 28 VEBA AG A HOLDING COMPANY AT 28 VODAFONE A UK CELLULAR PHONE COMPANY 16 AND CAISSE DES DEPOTS A FRENCH FINANCIAL INSTITUTION 2 THE REMAINDER IS HELD BY GERMAN COMPANIES 9302050060 930205 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED JAN 29 ACCOUNTED FOR 65 OR AN AVERAGE 181 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 74 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 475 INVOLVED STOCKINDEX ARBITRAGE UP FROM 307 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 532 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 368 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 10 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES UBS SECURITIES AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE PAINEWEBBER AND MORGAN STANLEY DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9302050059 930205 FOREIGN EXCHANGE DOLLAR ENDS MIXED AFTER EARLY GAINS IN WAKE OF GERMAN INTERESTRATE CUTS GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERESTRATE CUTS IN GERMANY AND JAPAN DOMINATED ACTION IN THE CURRENCY MARKETS YESTERDAY AND BY THE END OF THE DAY THE DOLLAR WOUND UP MIXED GERMANY'S CENTRAL BANK THE BUNDESBANK SURPRISED MOST OF THE MARKET BY DROPPING ITS OFFICIAL RATES BUT THE DOLLAR GAVE UP MOST OF ITS EARLY GAINS ON THE NEWS AS PLAYERS DISCOUNTED THE CUT AS A GRUDGINGLY APPLIED BANDAGE FOR THE EUROPEAN EXCHANGE RATE MECHANISM OR ERM THE BANK OF JAPAN ALSO CUT ITS DISCOUNT RATE BUT THAT MOVE HAD BEEN LEAKED SO WIDELY BEFOREHAND THAT THE MARKET BARELY RESPONDED DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16560 MARKS UP FROM 16450 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12465 YEN UP FROM 12436 YEN STERLING WAS TRADING AT 14415 UP FROM 14355 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16595 MARKS AND AT 12460 YEN ALTHOUGH THERE HAD BEEN GROWING HINTS THAT THE BUNDESBANK MIGHT LOWER RATES AT YESTERDAY'S MEETING OF THE CENTRAL BANK COUNCIL SAID ROBERT HATCHER CORPORATE TRADER AT STANDARD CHARTERED BANK PLC IN NEW YORK I THINK THE MAJORITY OF THE MARKET WAS SURPRISED BY THE CUTS IN THE LOMBARD AND DISCOUNT RATES THE DOLLAR BEGAN TO CLIMB AFTER THE BUNDESBANK UNEXPECTEDLY ANNOUNCED IT WOULD HOLD A NEWS BRIEFING AFTER THURSDAY'S COUNCIL MEETING THOUGH PAST RATE CUTS HAVE COME WITHOUT SUCH CONFERENCES AND PAST BRIEFINGS HAVEN'T BROUGHT RATE CUTS DEALERS SAID YESTERDAY'S SHORT NOTICE FUELED EXPECTATIONS OF A CUT BUT AS THE DOLLAR BROKE HIGHER SENTIMENT BEGAN TO SHIFT DEALERS SAID MINUTES AFTER THE BUNDESBANK ANNOUNCED IT WAS TRIMMING ITS DISCOUNT RATE 025POINT TO 8 AND ITS LOMBARD RATE 050POINT TO 9 THE RALLY RAN INTO HEAVY SELLING DEALERS SAID THE DOLLAR SORT OF STALLED OUT SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT IN CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD IN NEW YORK PARTICIPANTS HAVE LONG ANTICIPATED GERMANY'S SLOWING ECONOMY WOULD REQUIRE THE BUNDESBANK TO EASE ITS GRIP ON CREDIT MANY EXPECT THAT ONCE THE CENTRAL BANK BEGINS TO FOCUS ON STIMULATING GERMANY'S ECONOMY THE MARK WILL PLUNGE AS ITS INTERESTRATE ADVANTAGE OVER THE DOLLAR EVAPORATES BUT DEALERS SAID YESTERDAY'S RATE CUTS APPEAR TO HAVE BEEN MOTIVATED BY ERM TURMOIL AS A RESULT THEY MAY NOT BE THE HARBINGERS OF A RAPID NARROWING OF THE GAP BETWEEN GERMAN AND US RATES DEALERS SAID THIS IS MORE TO HELP OUT THE EUROPEANS SAID MR GRIFFIN ADDING IF THEY REALLY WANTED TO HELP OUT THE DOMESTIC ECONOMY THEY WOULD HAVE DONE MORE ANNOUNCING THE RATE CUTS HELMUT SCHLESINGER THE BUNDESBANK'S PRESIDENT SAID ONE GOAL WAS TO CALM THE ERM WE HOPE THIS UNFRIENDLY GAME THIS DOMINO EFFECT OF SPECULATION WHERE THE FOREIGNEXCHANGE MARKETS PICK ONE CURRENCY AFTER ANOTHER WILL NOW END HE SAID BEFORE THE BUNDESBANK'S ANNOUNCEMENT THE DANISH KRONE THE ERM'S LATEST VICTIM WAS HIT BY MASSIVE SELLING DRAWING INTERVENTION BY CENTRAL BANKS ACROSS THE SYSTEM TO SUPPORT IT THE DANISH CENTRAL BANK ALSO INCREASED ITS DISCOUNT RATE TWO POINTS TO 115 IN A BID TO DETER SPECULATORS BUT IT WAS ONLY AFTER THE GERMAN RATE CUTS THAT THE KRONE REBOUNDED LATE IN NEW YORK THE MARK WAS QUOTED AT 38350 KRONER WELL BELOW 39000 KRONER WEDNESDAY ROBERT HATCHER IS A CORPORATE TRADER AT BARCLAYS BANK PLC IN NEW YORK IN FRIDAY'S FOREIGN EXCHANGE COLUMN MR HATCHER WAS INCORRECTLY IDENTIFIED AS WORKING FOR STANDARD CHARTERED BANK PLC 9302050058 930205 BUSINESS BRIEF COLGATEPALMOLIVE CO FOURTHPERIOD NET ROSE 27 ON A 12 INCREASE IN SALES COLGATEPALMOLIVE CO POSTED A 27 INCREASE IN FOURTHQUARTER EARNINGS ON HIGHER SALES PARTICULARLY IN THE LATIN AMERICA AND ASIA/AFRICA REGIONS THE NEW YORK CONSUMER PRODUCTS COMPANY KNOWN BEST FOR ITS PERSONAL CARE PRODUCTS REPORTED NET INCOME OF 110 MILLION OR 66 CENTS A SHARE UP FROM 869 MILLION OR 58 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES GREW 12 TO 177 BILLION COLGATE'S US /CANADA DIVISION INCREASED SALES 19 LARGELY THROUGH THE RECENTLY ACQUIRED MENNEN PERSONAL CARE BUSINESS COLGATE SAID ITS LATIN AMERICAN UNIT LED BY MEXICO BRAZIL AND VENEZUELA RECORDED THE GREATEST GROWTH SALES WERE UP 27 FASTGROWING ECONOMIES IN ASIA SUCH AS THAILAND AND THE PHILIPPINES HELPED SALES IN THE REGION TO RISE 18 WHILE EUROPEAN SALES WERE UP 10 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY COLGATEPALMOLIVE GAINED 375 CENTS TO 59875 9302050057 930205 WORLD MARKETS FRANKFURT EXPECTS RALLY FROM GERMAN RATES CUT BUT INVESTORS IN LONDON UNIMPRESSED BY MOVE A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT INVESTORS ARE EXPECTING STOCKS TO BUILD UP A RALLY THROUGH NEXT WEEK IN REACTION TO THE GERMAN CENTRAL BANK'S SURPRISE CUT IN INTEREST RATES A MOVE THAT CAME AFTER THE MARKET CLOSED THURSDAY BUT ON THE LONDON EXCHANGE WHERE INVESTORS HAD TIME TO REACT TO THE BUNDESBANK MOVE STOCKS FELL AS PROFITTAKING SET IN AFTER THE GERMAN REDUCTIONS WEREN'T AS BIG AS HOPED FOR TOKYO INVESTORS WERE BLASE ABOUT A JAPANESE RATE CUT WHICH HAD BEEN EXPECTED BUT WAS SMALLER THAN DESIRED AND STOCKS ENDED SLIGHTLY LOWER AFTER SEESAW TRADING DOMINATED BY TECHNICAL FACTORS IN FRANKFURT STOCK PRICES ENDED NARROWLY MIXED THE DAX 30STOCK INDEX EDGED UP 008 POINT TO 160161 A NEW HIGH FOR THIS YEAR AFTER A REBOUND FROM A 1993 CLOSING LOW OF 151650 ON JAN 13 AFTER TRADING ENDED THE UNEXPECTED SCHEDULING OF A NEWS CONFERENCE BY THE BUNDESBANK GERMANY'S CENTRAL BANK FOLLOWING ITS COUNCIL MEETING CAUSED THE DAX FUTURES CONTRACT TO RALLY THE BANK'S SUBSEQUENT ANNOUNCEMENT OF A CUT IN ITS LOMBARD RATE TO 9 FROM 95 AND ITS DISCOUNT RATE TO 8 FROM 825 TRIGGERED PROFITTAKING WHICH CAUSED DAX FUTURES TO FALL BACK THE NEWS CAME AFTER MOUNTING CRITICISM THAT TIGHT GERMAN MONETARY POLICY WAS LEADING TO A STRING OF CURRENCY DEVALUATIONS WITHIN EUROPE'S EXCHANGE RATE MECHANISM AFTER A POTENTIAL CONSOLIDATION IN STOCK PRICES A DAX RANGE OF 1550 TO 1620 POINTS WAS ANTICIPATED FOR NEXT WEEK WITH A RALLY AS HIGH AS 1650 CONSIDERED POSSIBLE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 79 POINTS TO 28659 FRACTIONALLY ABOVE THE DAY'S LOW OF 28654 AND FAR OFF THE 29001 PEAK WHICH MARKED A RECORD TRADING HIGH THE FT 30STOCK INDEX DECLINED 68 POINTS TO 22189 VOLUME WAS A STRONG 9486 MILLION SHARES COMPARED WITH 851 MILLION SHARES A DAY EARLIER LONDON SHARES GOT OFF TO A BUOYANT START BECAUSE OF A STRONG PERFORMANCE WEDNESDAY ON WALL STREET AS WELL AS JAPANESE AND ITALIAN RATE CUTS BUT PRICES BEGAN TO WITHER ON A LACK OF FOLLOWTHROUGH BUYING LATER PRICES STARTED CLIMBING AGAIN ON REPORTS OF THE GERMAN CENTRAL BANK'S NEWS CONFERENCE THEN RETREATED BROADLY AT MIDAFTERNOON IN THE WAKE OF THE SMALLERTHANANTICIPATED RATE CUTS THOSE SKIMPIER REDUCTIONS WERE ALREADY FACTORED INTO BRITISH SHARE PRICES SOME PARTICIPANTS SUGGESTED THAT SUCH A SLIGHT GERMAN RATE REDUCTION ONLY POSTPONED A MORE SUBSTANTIVE CREDIT EASING NEWS THAT STERLING INTERBANK RATES DECLINED FOLLOWING THE BUNDESBANK MOVE WAS MOSTLY IGNORED BY THE LONDON EQUITY MARKET INVESTORS ALREADY HAD DISCOUNTED SHARE PRICES FOR AT LEAST AN ADDITIONAL CUT OF ONE PERCENTAGE POINT IN BRITAIN'S BASE LENDING RATES BUT NOT ALL ANALYSTS WERE PESSIMISTIC SOME NOTED THAT LONDON STOCKS' RETREAT WAS MORE OF A CONSOLIDATION THAT WOULD ALLOW FOR ATTEMPTS AT FRESH HIGHS SOON AS SEVERAL OTHER EUROPEAN CENTRAL BANKS ALSO EASED MONETARY POLICY PARIS SHARE PRICES STRENGTHENED BROADLY ON BUYING SPARKED BY THE GERMAN INTERESTRATE CUTS THE GERMAN ACTION LIFTED AMSTERDAM STOCKS FROM LOWS TO FINISH MIXED MILAN STOCKS ROSE BUOYED BY A DECISION BY THE BANK OF ITALY TO CUT ITS DISCOUNT RATE TO 115 FROM 12 MADRID EQUITIES' GAINS WERE LED BY THE BANKING SECTOR AS THE MARKET WAS CHEERED BY GERMANY'S SHAVED RATES WHICH ALSO REVERSED AN EARLY SLIDE IN STOCKHOLM WHERE SHARES ENDED BROADLY HIGHER AND PULLED ZURICH PRICES UP FROM LOWS TO RECORD SLIGHT GAINS ON FRIDAY THE NIKKEI INDEX ROSE 18019 POINTS TO CLOSE THE MORNING SESSION AT 1737082 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES DOWN SHARPLY FROM 3391 MILLION SHARES WEDNESDAY LOSERS OUTNUMBERED GAINERS 555368 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 579 POINTS WEDNESDAY DROPPED 677 TO 130083 THE BANK OF JAPAN REDUCED ITS DISCOUNT RATE THE RATE ON ITS SHORTTERM LOANS TO COMMERCIAL BANKS TO 25 FROM 325 IN AN EFFORT TO STIMULATE THE ECONOMY BUT SHARE PRICES HAD ALREADY DISCOUNTED A CUT OF 075 PERCENTAGE POINT INVESTORS WERE LOOKING FOR THE JAPANESE GOVERNMENT TO SUPPORT THE RATE CUT WITH OTHER MEASURES THAT WILL SPEED THE AILING ECONOMY'S RECOVERY BUT FINANCE MINISTER YOSHIRO HAYASHI SAID THURSDAY MORNING THAT NEW FISCALSTIMULUS MEASURES WON'T NECESSARILY COME NEXT AND HE REITERATED HIS OPPOSITION TO AN INCOMETAX CUT THE RULING PARTY SAID IT WOULD TAKE SOME ACTION TO ENERGIZE THE ECONOMY BUT WARNED AGAINST MOVES THAT COULD SPUR INFLATION THE NIKKEI ROSE AS HIGH AS 1739079 DURING THE SESSION AFTER CLIMBING STEEPLY AT THE OPENING ON INDEX FUTURES' STRONG CLOSE A DAY EARLIER BUT THE INDEX QUICKLY EASED ON PROFITTAKING THE FUTURES MARKET LED STOCK PRICES ON A FRENETIC RIDE THROUGHOUT THE DAY SINGAPORE STOCKS FELL BROADLY ON WIDESPREAD PROFITTAKING HONG KONG SHARES ENDED SHARPLY HIGHER ON ENTHUSIASM ABOUT THE RESULTS OF A GOVERNMENT LAND AUCTION WHICH SUGGESTED DEVELOPERS WERE POSITIVE DESPITE A SINOBRITISH DISPUTE ON THE BRITISH COLONY'S FUTURE SEOUL PRICES ROSE ON INSTITUTIONAL BUYING TAIPEI EQUITIES' RALLY EXTENDED TO FIVE SESSIONS IN A ROW AMONG CORPORATE DEVELOPMENTS IN LONDON KINGFISHER LOST 20 PENCE OR 36 TO 538 PENCE 772 THE RETAILER SAID IT WAS HOLDING DISCUSSIONS WITH DARTY OF FRANCE AN ELECTRICALAPPLIANCE RETAILER BUT DIDN'T ELABORATE TRADING OF DARTY SHARES WAS SUSPENDED AT 514 FRENCH FRANCS 9220 IN PARIS WHERE A NEWS REPORT SAID KINGFISHER PLANNED TO BUY DARTY SOME INVESTORS WORRIED THAT KINGFISHER WOULD HAVE A TOUGH TIME SWALLOWING DARTY IF IT OPTS FOR A FULL TAKEOVER IN PARIS THOMSONCSF ROSE 45 FRENCH FRANCS OR 31 TO 1485 FRANCS 2664 ON NEWS THAT ITS MICROCHIP VENTURE SGSTHOMSON MICROELECTRONICS WOULD SHOW A PROFIT FOR 1992 THE COMPANY IS A JOINT UNIT OF FRENCH STATECONTROLLED THOMSONCSF AND ISTITUTO PER LA RECONSTRUZIONE INDUSTRIALE THE ITALIAN STATE INDUSTRIAL HOLDING COMPANY IN AMSTERDAM DAF EDGED UP 15 DUTCH CENTS TO 195 GUILDERS 105 THE ANGLODUTCH TRUCK MAKER'S BANK CREDITORS AGREED TO GRANT AN EMERGENCY LOAN WHICH HAD BEEN REQUESTED BY COURTAPPOINTED ADMINISTRATIVE RECEIVERS FOR DAF IN BRUSSELS DELHAIZE DROPPED 58 BELGIAN FRANCS OR 43 TO 1300 FRANCS 3825 AFTER FALLING AS MUCH AS 86 TO 1240 ON PROBLEMS AT THE FOOD RETAILER'S US FOOD LION UNIT 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 9302050056 930205 SELLING SACRIFICE AS OPPONENTS GEAR UP CLINTON PREPARES PITCH FOR HIS ECONOMIC PLAN WHITE HOUSE MAPS STRATEGY TO BLUNT PUBLIC PROTESTS ON SPENDING CUTS TAXES A MASS MAILING BY THE ELDERLY BY GERALD F SEIB AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A BATTLE TO SWAY THE HEARTS AND MINDS OF THE AMERICAN PEOPLE OVER THE CLINTON ECONOMIC PROGRAM IS ABOUT TO BEGIN AND TRUCKERS UTILITY COMPANIES AND THE SENIOR CITIZENS' LOBBY ARE READY TO FIGHT TO FIGHT BACK THE CLINTON WHITE HOUSE IS READYING A WAR ROOM ELECTRONICMAIL NETWORKS AND A BIG DOSE OF THE BILL CLINTON TV SHOW CLINTON ADVISERS PLAGUED BY MISFIRES IN THE PRESIDENT'S EARLY DAYS KNOW THEY HAVE TO GET IT RIGHT THIS TIME FOR THE SUCCESS OF THE ADMINISTRATION'S FIRST YEAR COULD HANG IN THE BALANCE THE EAGERLY AWAITED ECONOMIC PLAN IS DESIGNED BOTH TO STIMULATE THE ECONOMY AND TO LOWER THE BUDGET DEFICIT WITH TAX INCREASES AND SPENDING CUTS THOUGH THE PLAN WON'T BE UNVEILED UNTIL FEB 17 POWERFUL GROUPS FEARING THEY WILL BE THE TARGETS OF MR CLINTON'S CALL FOR SACRIFICE ALREADY ARE PREPARING TO UNLEASH COASTTOCOAST CRIES OF PROTEST ONE GROUP THE UNITED SENIORS ASSOCIATION INC BASED IN FAIRFAX VA IS PUTTING THE FINISHING TOUCHES ON A MASS MAILING TO ITS 350000 MEMBERS AND MORE THAN A MILLION OTHER ELDERLY AMERICANS INVITING THEM TO FIGHT ANY PROPOSALS TO CURB SOCIAL SECURITY BENEFITS INCREASE INHERITANCE TAXES OR REDUCE MEDICARE PAYMENTS I FEEL LIKE I'VE BEEN DROPPED IN THE MIDDLE OF A WAR FRANKLY SAYS STEVEN ALLEN AN ASSOCIATION OFFICIAL AT THE AMERICAN TRUCKING ASSOCIATIONS IN ALEXANDRIA VA WORD ALREADY HAS GONE OUT TO SOME 35000 AFFILIATED TRUCKING COMPANIES AND ANOTHER 8000 TRUCK DRIVERS THAT THEY NEED TO BEGIN FIGHTING AGAINST HIGHER GASOLINE TAXES WE'RE LOADING GUNS SAYS JOHN DOYLE A SPOKESMAN FOR THE GROUP AND TO FIGHT A POSSIBLE BROADBASED ENERGY TAX SOME 40 COMPANIES INCLUDING UTILITIES AND COAL CONCERNS HAVE FORMED THE ALLIANCE AGAINST THE CARBON TAX ALL THIS MEANS THAT MR CLINTON WILL FACE THE ENORMOUS TASK OF KEEPING HIS PROGRAM FROM BEING PICKED APART BY THOSE WHO DON'T LIKE ITS INDIVIDUAL PIECES CLINTON AIDES WHO ADMIT THEY DID A POOR JOB OF ARTICULATING A COHERENT MESSAGE IN MR CLINTON'S FIRST DAYS ARE NOW LAYING A COMMUNICATIONS STRATEGY MODELED AFTER THAT USED IN HIS PRESIDENTIAL CAMPAIGN ITS GOAL TO GO OVER THE HEADS OF SPECIALINTEREST GROUPS AND SELL THE PACKAGE TO THE PUBLIC AS A FAIR PLAN IN WHICH EVERYONE SACRIFICES A LITTLE NOW TO CUT THE DEFICIT AND SOW THE SEEDS FOR GROWTH LATER AIDES PROMISE AN ALLOUT COMMUNICATIONS ASSAULT THIS IS A CRITICAL DEFINING MOMENT OF HIS PRESIDENCY DECLARES STANLEY GREENBERG THE PRESIDENT'S POLLSTER YOU DO IT ALL YOU GO ALL OUT IT MAY BE ONE MONTH INTO HIS PRESIDENCY BUT RONALD REAGAN'S PRESIDENCY WAS MADE BY HIS ECONOMIC PROGRAM AND THE SELLING OF THAT PROGRAM TO CONGRESS AND BRINGING THE PEOPLE WITH HIM THE QUESTION IS WHETHER THE NASCENT CLINTON ADMINISTRATION WHICH HAS HAD TROUBLE KEEPING SOME OF ITS OWN ALLIES LINED UP SO FAR IS PREPARED FOR THE TASK THE SELLING JOB WILL BE PARTICULARLY DIFFICULT BECAUSE SOME PROVISIONS BEING CONSIDERED NOTABLY ENERGY TAXES AND LIMITS ON BENEFITS FOR THE ELDERLY WILL HIT THE MIDDLE CLASS WHICH MR CLINTON DEPENDS ON FOR SUPPORT I DON'T KNOW WHETHER HE CAN PULL IT OFF SAYS GREG SCHNEIDERS A DEMOCRATIC CONSULTANT THERE ARE GOING TO BE PEOPLE ON THE OTHER SIDE ARGUING THE OPPOSITE CASE PRETTY HARD PART OF THE CLINTON STRATEGY WILL BE TO PACKAGE HIS PLAN CAREFULLY TO MAKE IT APPEAR THAT SPENDING IS BEING BROUGHT UNDER CONTROL BEFORE SACRIFICES ARE DEMANDED FROM VOTERS AND THAT WHEN SACRIFICES COME THE COMFORTABLE WILL SACRIFICE THE MOST TAX INCREASES WILL BE SOLD AS A NECESSARY LAST RESORT TAKEN ONLY AFTER GOVERNMENT PROGRAMS INCLUDING SOME DEAR TO MR CLINTON HAVE BEEN CUT AND ANY ENERGY TAX WILL BE BILLED AS A SHARED SACRIFICE BUT CLINTON AIDES KNOW THAT PACKAGING THE PLAN IS JUST A PRELUDE TO THE PROCESS OF SELLING IT TO THE PUBLIC A TASK THAT WILL BE PERFORMED MUCH AS CANDIDATE CLINTON WAS SOLD TO THE PUBLIC THE FIRST STEP HAS BEEN TO ESTABLISH A POLITICAL WAR ROOM IN THE EXECUTIVE OFFICE BUILDING ADJACENT TO THE WHITE HOUSE THE ROOM RECREATES A SIMILAR POLITICAL BRAIN CENTER THAT RAN 24 HOURS A DAY IN MR CLINTON'S CAMPAIGN HEADQUARTERS THAT OPERATION RESPONDED INSTANTLY TO ANY POLITICAL ATTACK WITH FASTFAXED PRESS RELEASES AND CLINTON STATEMENTS AT LEAST TWICE A DAY REPRESENTATIVES FROM ALL WHITE HOUSE DEPARTMENTS MEET THERE TO COORDINATE EVENTS AND THE PRESIDENT'S MESSAGE THE PROCESS BEGINS AT 730 AM GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR MEETS WITH HIS STAFF AND DEVELOPS TALKING POINTS TO BE USED BY ADMINISTRATION OFFICIALS DURING THE DAY MR STEPHANOPOULOS THEN PRESIDES OVER A SESSION IN THE WAR ROOM AT 830 AM TO DISCUSS THOSE POINTS AND BREAKING NEWS MEANTIME THE TALKING POINTS ARE DISTRIBUTED TO ALL GOVERNMENT AGENCIES AT 5 PM RAHM EMANUEL THE POLITICAL DIRECTOR TAKES OVER AND DISCUSSES LONGERRANGE PLANNING OF THE PRESIDENT'S EVENTS AND EVENTUALLY THE DEMOCRATIC NATIONAL COMMITTEE MAILS OUT A VERSION OF THE CLINTON LINE TO SOME 1200 SUPPORTERS A SECOND STEP TAKEN IN RESPONSE TO MISSTEPS OVER HOMOSEXUALS IN THE MILITARY AND THE FAILED NOMINATION OF ZOE BAIRD FOR ATTORNEY GENERAL HAS BEEN TO BRING MR CLINTON'S POPULISTMINDED CAMPAIGN ADVISERS BACK INTO THE LOOP NOW CAMPAIGN CONSULTANTS PAUL BEGALA AND JAMES CARVILLE AND MR GREENBERG THE POLLSTER HAVE DAILY DISCUSSIONS OFTEN INSIDE THE WHITE HOUSE ITSELF WITH CLINTON AIDES AT THE SAME TIME CLINTON COMMUNICATIONS SPECIALIST JEFF ELLER HAS LAUNCHED AN EFFORT TO RADICALLY UPGRADE WHITE HOUSE COMMUNICATIONS EQUIPMENT SO IT CAN MORE QUICKLY SEND CLINTON MESSAGES TO CAPITOL HILL AND TO SUPPORTERS NATIONWIDE CLINTON AIDES COMPLAIN THAT THE WHITE HOUSE COMPUTER AND COMMUNICATIONS EQUIPMENT IS WOEFULLY ANTIQUATED IT LOOKED LIKE THE FLINTSTONES MOANS MR BEGALA AS THE SYSTEM IS BEING UPGRADED MR CLINTON'S AIDES ARE BEGINNING TO FIRE OFF DAILY ELECTRONIC MESSAGES OF THE SAME VARIETY THAT WERE USED TO KEEP THE PRESIDENT'S CAMPAIGN MESSAGE CONSISTENT ON MONDAY THE WHITE HOUSE FOR THE FIRST TIME PROVIDED TALKING POINTS TO BE INCLUDED IN A WEEKLY NOTICE THAT IS CIRCULATED TO DEMOCRATIC HOUSE MEMBERS THE MESSAGE PROBABLY REPRESENTATIVE OF THE GUIDANCE THAT WILL BE COMING REGULARLY GIVES THEM INSTRUCTIONS ON HOW TO DESCRIBE THE CLINTON ECONOMIC PROGRAM IT EMPHASIZES THAT THE PLAN WILL BE GROUNDED IN THREE ELEMENTS GENERATE JOBS INCREASE INCOMES AND COMMIT TO LONGTERM DEFICIT REDUCTION TO EXPAND THE DELIVERY SYSTEM WHITE HOUSE AIDES ARE THINKING OF USING COMPUTER NETWORKS TO DISTRIBUTE MESSAGES ABOUT THE PROGRAM TO LIBRARIES AND CLASSROOMS AND AFTER MR CLINTON MAKES HIS SPEECH UNVEILING HIS PLAN THE WHITE HOUSE HOPES TO USE SATELLITE HOOKUPS TO MAKE CONGRESSIONAL ALLIES AVAILABLE FOR NEWS INTERVIEWS THE MESSAGE WILL BE THAT AMERICANS HAVE ALMOST A DUTY TO SUPPORT AN ATTACK ON ECONOMIC PROBLEMS WE KNOW THAT IF WE WANT TO SELL THE PROGRAM WE HAVE TO GET PEOPLE BEHIND IT AND THE ONLY WAY YOU BEAT HIGHPOWERED HIGHFINANCED SPECIAL INTERESTS IS TO GO DIRECTLY TO THE PEOPLE AND BUILD THE CASE THAT THERE IS A PATRIOTIC DUTY TO TURN THIS COUNTRY AROUND MR STEPHANOPOULOS SAYS IN ADDITION WHITE HOUSE AIDES ALREADY HAVE BEGUN INSTALLING A NEW TELEPHONE SYSTEM TO BETTER HANDLE WAVES OF CALLS EXPECTED FROM VOTERS WHO IN THE CAMPAIGN GREW ACCUSTOMED TO DIALING 800 NUMBERS TO VOICE THEIR VIEWS DIRECTLY BUT WITH 65 DIFFERENT TELEPHONE SYSTEMS IN THE COMPLEX IT WILL TAKE ABOUT SIX MONTHS FOR AN INTEGRATED SYSTEM TO BE INSTALLED THE BIGGEST WEAPON OF ALL THOUGH WILL BE MR CLINTON HIMSELF HE WILL APPEAR ON TELEVISION NEXT WEEK TO HOLD THE FIRST TOWN MEETING OF HIS PRESIDENCY THAT EVENT WHICH WILL BE BROADCAST FROM DETROIT WILL BE FOLLOWED BY A KIDS' TOWN HALL MEETING AT THE WHITE HOUSE THE JUNIOR TOWN HALL IS AIMED AT SHOWING THAT CLINTON'S ECONOMIC PLAN IS GEARED TO FUTURE PROSPERITY AND ON TOP OF THAT MR CLINTON PLANS TO MAKE REGULAR WEEKEND RADIO ADDRESSES BEGINNING TOMORROW BOSTON MAYOR RAYMOND FLYNN FOR ONE BELIEVES THAT THE SUCCESS OF MR CLINTON'S PROGRAM HINGES ON HIS ABILITY TO USE SUCH OUTLETS TO PROMOTE THE PLAN AS ONE THAT WILL STIMULATE THE ECONOMY AND CREATE JOBS WHILE CALLING FOR SOME SACRIFICE MR FLYNN ONE OF A GROUP OF MAYORS WHO WILL MEET WITH THE PRESIDENT TODAY NOTES THAT WHEN THE MAYORS PROPOSED A MAJOR INVESTMENT IN INFRASTRUCTURE THEY WERE SUPPORTED BY ECONOMISTS CONSTRUCTION UNIONS AND BUILDING TRADES THE PEOPLE MR CLINTON WILL NEED TO RALLY TO HIS OWN PLAN THIS IS LIKE WAGING A CAMPAIGN FOR WARD CHAIRMAN MR FLYNN SAYS YOU'VE GOT TO GO OUT THERE AND KNOCK ON DOORS YOU'VE GOT TO EDUCATE AND INFORM AND YOU HAVE TO GET SUPPORT MR CLINTON AND HIS AIDES HAVE BEEN REACHING OUT TO THOSE WHO CAN HELP SELL THE PLAN IN THE WAY MR FLYNN ADVISES IN ADDITION TO THE MAYORS HE MET THIS WEEK WITH THE NATION'S GOVERNORS OF COURSE MR CLINTON ALSO WILL HAVE TO WIN OVER CONGRESS THAT PROCESS ALSO BEGAN THIS WEEK ON WEDNESDAY NIGHT MR STEPHANOPOULOS AND HIS TOP AIDE MET WITH HOUSE MAJORITY LEADER RICHARD GEPHARDT AND OTHER LEGISLATIVE LEADERS IN A SESSION DEVOTED TO DISCUSSING HOW TO SELL THE ECONOMIC PACKAGE IN CONGRESS CLINTON AIDES WERE URGED TO HAVE THE PRESIDENT MEET LAWMAKERS IN SMALL GROUPS THE KEY FOR MR CLINTON IN CONGRESS WILL BE TO PERSUADE LAWMAKERS TO KEEP HIS ECONOMIC PACKAGE INTACT AND NOT LET IT BE BROKEN APART INTO PIECES THAT CAN EACH BE ATTACKED BY OPPONENTS VETERANS OF MR REAGAN'S EARLY SUCCESS IN PUSHING HIS TAX AND SPENDING CUTS THROUGH CONGRESS THINK THE TURNING POINT CAME NOT ON THE FINAL VOTE ON THE PACKAGE ITSELF BUT ON AN EARLY VOTE TO DEFEAT AN OBSCURE LEGISLATIVE PROCEDURE THAT WOULD HAVE ALLOWED THE PACKAGE TO BE SPLIT INTO SIX SEPARATE MEASURES MR CLINTON HAS TO BE SURE THAT AMERICANS SEE HIS PLAN AS A COMBINED PACKAGE WHICH WILL FOR THE FIRST TIME STRUCTURALLY ATTACK THE DEFICIT LOWER LONGTERM INTEREST RATES AND CREATE A CLIMATE IN WHICH GROWTH CAN OCCUR SAYS STUART EIZENSTAT A TOP CARTER ADMINISTRATION AIDE WHO NOW IS A CLINTON ADVISER BUT NOTHING THE CLINTON CAMP CAN DO WILL STOP OPPONENTS FROM TRYING TO PERSUADE THE PUBLIC TO BORE IN ON UNPOPULAR PROVISIONS OF THE PLAN ANY ENERGY TAX MR CLINTON PROPOSES PROMISES TO DRAW ESPECIALLY HEAVY FIRE FOR INSTANCE YESTERDAY AN ALLIANCE OF TRADE ASSOCIATIONS AND BUSINESS AND CONSUMER GROUPS ANNOUNCED THEIR OPPOSITION TO THE KINDS OF BROADBASED ENERGY TAXES MR CLINTON'S ADVISERS HAVE DISCUSSED THE GROUPS RANGED FROM THE AMERICAN IRON AND STEEL INSTITUTE TO THE NATIONAL COAL ASSOCIATION TO THE RUBBER MANUFACTURERS ASSOCIATION TO THE LEAGUE OF UNITED LATIN AMERICAN CITIZENS SIMILARLY THE AMERICAN TRUCKING ASSOCIATIONS WORRIED THAT A GASOLINE TAX MIGHT BE INCLUDED IN THE CLINTON PROGRAM TODAY PLANS TO SEND A LETTER TO MR CLINTON MR PRESIDENT TO SOME FOLKS INSIDE THE BELTWAY A GAS TAX MAY LOOK LIKE A QUICK FIX FOR A NUMBER OF PROBLEMS IT SAYS BUT FOR THE REST OF THE COUNTRY INCLUDING THE 78 MILLION AMERICANS WHO WORK IN THE TRUCKING INDUSTRY A GAS TAX CREATES MORE PROBLEMS THAN IT SOLVES THE US BUSINESS AND INDUSTRIAL COUNCIL AN ORGANIZATION OF SOME 1500 SMALL AND MEDIUMSIZE COMPANIES SCATTERED ACROSS 300 CONGRESSIONAL DISTRICTS IS GETTING PREPARED TO PROTEST ENERGY TAXES AND INCREASED INHERITANCE TAXES WHEN THE CLINTON PACKAGE IS UNVEILED THE ORGANIZATION'S LEADERS IN WASHINGTON WILL BE READY TO MAIL OUT ACTION ALERTS TO ALL COUNCIL MEMBERS THESE WOULD INCLUDE A SUMMARY OF PERCEIVED PROBLEM AREAS PHONE NUMBERS FOR MEMBERS OF CONGRESS AND PERHAPS SAMPLE LETTERS AND FAX FORMS TO SEND TO CAPITOL HILL MEANWHILE A GROUP OF BUSINESSES AND TRADE COMPANIES CALLED THE GLOBAL CLIMATE COALITION THIS WEEK PRODUCED AN ARMFUL OF ACADEMIC AND SCIENTIFIC STUDIES IN A PREEMPTIVE STRIKE AGAINST A CARBON TAX SAYING IT MIGHT DAMAGE THE ECONOMY A CARBON TAX WHICH WOULD LEVY FEES ON USERS OF FOSSIL FUELS IN AN ATTEMPT TO BOTH RAISE MONEY AND DISCOURAGE POLLUTION APPEALS TO ENVIRONMENTALISTS THOUGH IT'S FAR FROM CLEAR MR CLINTON WANTS TO INCLUDE ONE IN HIS PACKAGE AT THE SAME TIME THERE ARE SIGNS OF EMERGING COUNTERINSURGENCIES PUSHING FOR TAXES AND RESTRICTIONS ON ENERGY CONSUMPTION THE FRIENDS OF THE EARTH AND THE ALLIANCE TO SAVE ENERGY TWO ENVIRONMENTAL GROUPS NEXT WEEK WILL RELEASE A POLL BY DEMOCRATIC POLLSTER CELINDA LAKE AND REPUBLICAN POLLSTER LANCE TARRANCE SHOWING STRONG SUPPORT FOR INCREASED FUELEFFICIENCY STANDARDS FOR CARS AND TO A LESSER EXTENT FOR INCREASED TAXES ON OIL AND COAL THAT HELP OFFSET THE DEFICIT THE POLL SHOWS OPPOSITION TO A 50CENT RISE IN THE GASOLINE TAX A SOLUTION PUSHED BY ENVIRONMENTAL GROUPS CLINTON ADVISERS REASON THAT THEY MIGHT BENEFIT IF OPPOSITION TO SOME OF THEIR PROPOSALS WERE TOO INTENSE THAT COULD TRIGGER A PUBLIC BACKLASH AGAINST SPECIAL INTERESTS WE WILL WIN IF THE GROUPS BEGIN CRYING OUT DON'T DO THIS TO MY PARTICULAR INTEREST MY NARROW INTEREST' SAYS MR GREENBERG IF THE SPECIAL INTERESTS RISE UP TO FIGHT HIS ATTEMPTS TO CUT GOVERNMENT SPENDING OR REFORM GOVERNMENT OR HIS TAXREFORM PROPOSALS THEN THE PEOPLE WILL KNOW WHOSE SIDE BILL CLINTON IS ON 9302050055 930205 POLITICS & POLICY ADMINISTRATION MULLS NAMING BOSNIA ENVOY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE IS CONSIDERING APPOINTING A SPECIAL ENVOY TO WORK BEHIND THE SCENES BROKERING A PEACE AGREEMENT IN BOSNIAHERZEGOVINA DISSATISFIED WITH A PEACE PLAN WORKED OUT BY FORMER SECRETARY OF STATE CYRUS VANCE AND BRITAIN'S DAVID OWEN THE CLINTON ADMINISTRATION HAS DECIDED IT HAS NO CHOICE BUT TO BECOME MORE ACTIVELY ENGAGED IN THE PEACE NEGOTIATIONS A SENIOR ADMINISTRATION AIDE SAID THE PROPOSAL WILL BE DISCUSSED IN DETAIL TODAY AT A WHITE HOUSE MEETING OF THE PRESIDENT'S TOP NATIONAL SECURITY ADVISERS THE RISKS FOR THE US ARE HIGH THE SERBS WHO ARE THE MAIN AGGRESSORS ARE LESS THAN ENTHUSIASTIC ABOUT THE VANCEOWEN PLAN IT WOULD TAKE STRONG SANCTIONS TO PERSUADE THEM TO ACCEPT A NEW PLAN IN WHICH THEY WOULD ALMOST CERTAINLY HAVE TO GIVE UP EVEN MORE OF THE TERRITORY THEY HAVE SEIZED THE UNITED NATIONS SECURITY COUNCIL SO FAR HAS BEEN UNABLE TO AGREE ON TOUGH SANCTIONS AGAINST THE SERBS AND IF A US ENVOY FAILS TO COME UP WITH A WORKABLE PLAN SOME CRITICS WILL BLAME THE ADMINISTRATION FOR HAVING ABANDONED THE VANCEOWEN EFFORT FOR THESE REASONS THE BUSH ADMINISTRATION INTENTIONALLY KEPT ITS DISTANCE FROM THE BOSNIAN NEGOTIATIONS EVEN SUCCESS COULD HAVE ITS PROBLEMS IF THE US TAKES THE DIPLOMATIC LEAD IN BROKERING A DEAL IT WILL ALMOST CERTAINLY BE CALLED UPON TO COMMIT PEACEKEEPERS TO ENFORCE IT THE MODEL FOR THE NEW US EFFORT COULD TURN OUT TO BE A MOREAGGRESSIVE VERSION OF THE ROLE PLAYED BY THE US IN TRYING TO SETTLE THE LONGFESTERING DISPUTE OVER CYPRUS THOSE NEGOTIATIONS ARE OFFICIALLY LED BY THE UNITED NATIONS BUT A US SPECIAL COORDINATOR SHUTTLES BETWEEN THE PARTIES USING AMERICAN INFLUENCE TO INDUCE A SETTLEMENT WHAT'S UNDER DISCUSSION IS A FAR MORE INTENSIVE DIPLOMATIC EFFORT THAN THE ONE IN CYPRUS SAID ONE ADMINISTRATION OFFICIAL THE CYPRUS CRISIS HAS BEEN GOING ON FOR 20 YEARS AND THE US COORDINATOR HAS BEEN AT WORK FOR ALMOST HALF THAT TIME WITH NO SETTLEMENT IN SIGHT THE ADMINISTRATION CONSIDERS THE VANCEOWEN PLAN WHICH WOULD BREAK UP BOSNIAHERZEGOVINA INTO 10 SEPARATE SEMIAUTONOMOUS PROVINCES UNENFORCEABLE THEY ALSO ARE CONCERNED THAT IT WOULD PARTITION THE COUNTRY INTO ETHNIC ENCLAVES AND REWARD SERBIAN ETHNIC CLEANSING MR VANCE IS REPRESENTING THE UN AND MR OWEN IS REPRESENTING THE EUROPEAN COMMUNITY WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID YESTERDAY THAT THE CLINTON ADMINISTRATION WOULD SUPPORT THE VANCEOWEN PLAN IF ALL THE PARTIES AGREED TO IT BUT SO FAR ALL THE PARTIES INVOLVED HAVE NOT AGREED TO IT THE BOSNIAN GOVERNMENT AND THE SERBS HAVE NOT AGREED TO IT SHE SAID ABOVE ALL OFFICIALS SAID THEY WON'T PRESSURE THE MUSLIMLED BOSNIAN GOVERNMENT INTO ACCEPTING THE PLAN WE WILL ENCOURAGE THE PROCESS SAYS ONE TOP AIDE BUT NOT THIS PARTICULAR PLAN AFTER CALLING FOR MOREAGGRESSIVE ACTION ON BOSNIA DURING THE CAMPAIGN THE CLINTON ADMINISTRATION IS FINDING FAR LESS ROOM TO MANEUVER THAN IT ORIGINALLY HOPED AIDES HOWEVER SAY THEY HAVE LITTLE CHOICE BUT TO TRY AND BREAK THE DIPLOMATIC IMPASSE BY TAKING A LEAD IN THE NEGOTIATING PROCESS 9302050054 930205 BUSINESS BRIEF AVON PRODUCTS INC COMPANY POSTS 12 RISE IN NET FOR FOURTH QUARTER AVON PRODUCTS INC NEW YORK SAID IT POSTED A 12 RISE IN FOURTHQUARTER NET INCOME LARGELY BECAUSE OF SALES INCREASES IN ITS AVON INTERNATIONAL DIVISION THE MARKETER OF COSMETICS GIFTS AND ACCESSORIES SAID NET IN THE QUARTER ROSE TO 1033 MILLION OR 144 A SHARE FROM 926 MILLION OR 129 A SHARE THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS SALES ROSE 39 TO 117 BILLION FROM 113 BILLION AVON INTERNATIONAL SALES WERE UP 7 AND SALES IN THE AMERICAS INCREASED SIGNIFICANTLY THE COMPANY SAID AVON US SALES FELL 1 BUT PRETAX INCOME ROSE 1 HELPED BY A REDUCTION IN EXPENSES FOR THE YEAR NET ROSE 29 TO 175 MILLION OR 243 A SHARE FROM 1357 MILLION OR 189 A SHARE PERSHARE AMOUNTS WERE FULLY DILUTED AS THE COMPANY ADDED 129 MILLION SHARES IN MID1991 AFTER A PREFERRED STOCK CONVERSION THE LATEST YEAR RESULTS INCLUDED A RESTRUCTURING CHARGE OF 644 MILLION WHILE 1991 RESULTS INCLUDED A NONCASH CHARGE OF 75 MILLION FOR DISCONTINUED OPERATIONS SALES FOR THE YEAR ROSE 6 TO 381 BILLION 9302050051 930205 ECONOMY MAJOR RETAIL CHAINS' INCREASES IN SALES WERE BIGGER THAN EXPECTED IN JANUARY BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR RETAIL CHAINS POSTED BIGGERTHANEXPECTED GAINS IN JANUARY SALES FURNISHING FURTHER EVIDENCE OF A RECOVERING ECONOMY AS CONSUMERS LOOSEN UP ON SPENDING RETAIL SALES LAST MONTH FOR STORES OPEN AT LEAST A YEAR INCREASED BETWEEN 47 AND 56 OVER JANUARY 1992 LEVELS BASED ON THE WEIGHTED INDEXES OF SEVERAL INDUSTRY ANALYSTS THEY HAD EXPECTED CONSUMERS TO CUT BACK A BIT LAST MONTH AFTER A HOLIDAY SPENDING SPREE THAT ENABLED MANY RETAILERS TO POST THEIR BEST CHRISTMAS SEASON IN YEARS BUT THE SALES STRENGTH AT YEAR'S END CARRIED OVER FROM THE HOLIDAYS AND INTO JANUARY THIS BUOYS MY CONFIDENCE FOR IMPROVED DEMAND SAID THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN CO DURING JANUARY RETAILERS OF ALL TYPES OF STORES BENEFITED WITH STORES IN THE MIDWEST AND SOUTH CONTINUING TO OUTPERFORM STORES IN THE STILLSLUGGISH CALIFORNIA AND NORTHEAST MARKETS TYPICALLY JANUARY IS THE LEAST SIGNIFICANT RETAIL MONTH OF THE YEAR AS STORES CLEAR OUT THEIR MERCHANDISE TO MAKE ROOM FOR SPRING GOODS BUT THIS YEAR THE SALES GAINS WERE MORE MEANINGFUL BECAUSE RETAILERS WITH SLIMMER INVENTORIES DIDN'T HAVE TO RESORT TO HEAVY MARKDOWNS TO GET THEM IT SHOWS THAT THE UNDERPINNINGS FOR A CONTINUED CONSUMERLED RECOVERY ARE THERE SAID JEFFREY FEINER AN ANALYST AT SALOMON BROTHERS INC PARTICULARLY ENCOURAGING WERE APPAREL SALES MOSTLY AT THE SPECIALTY RETAILERS LIMITED INC BASED IN COLUMBUS OHIO CONTINUED TO PERFORM WELL WITH A 6 SAMESTORE SALES GAIN INCLUDING A 25 SALES JUMP AT ITS EXPRESS DIVISION NEW YORKBASED ANNTAYLOR STORES CORP'S SAMESTORE SALES JUMPED 11 AND SAMESTORE SALES AT SAN FRANCISCOBASED GAP INC CLIMBED A STRONG 7 AS IT LOWERED INITIAL PRICES ON CLOTHING AND INCREASED THE NUMBER OF MARKDOWNS FROM A YEAR AGO TO MOVE OUT EXCESS MERCHANDISE MANY STORES LAST MONTH HAD BRISK SALES OF SPRING MERCHANDISE WHICH GIVES RETAILERS A BETTER IDEA OF WHAT ITEMS TO STOCK WITH CONFIDENCE BEING A LITTLE BETTER FOLKS ARE TIRED OF WEARING THE SAME KIND OF GOODS THEY'VE BEEN WEARING FOR A COUPLE YEARS THEY WANT A LITTLE EXCITEMENT SAID MR TASHJIAN DISCOUNT STORES POSTED THE BIGGEST INCREASES OVERALL CONTINUING TO BENEFIT FROM CONSUMERS' APPETITE FOR VALUEPRICED PRODUCTS AT WALMART STORES INC BASED IN BENTONVILLE ARK SAMESTORE SALES JUMPED 10 WHILE NORWALK CONNBASED CALDOR CORP'S SAMESTORE SALES CLIMBED A WHOPPING 15 KMART CORP HOWEVER CONTINUED TO LIMP ALONG WITH FLAT SAMESTORE SALES IN JANUARY JOSEPH E ANTONINI CHAIRMAN AND CHIEF EXECUTIVE OFFICER BLAMED FEWER CLEARANCE SALES AT MARKDOWN PRICES THAN KMART HAD A YEAR AGO BUT NOTED THAT THE COMPANY SHOULD HAVE BETTER PROFITS AS A RESULT EVEN SEARS ROEBUCK & CO CHICAGO CONTINUED ITS RECENT STRONG SALES GAINS WITH SAMESTORE SALES UP 83 THE CONTINUING STRONG SALES TREND OF RECENT MONTHS IS ENCOURAGING PARTICULARLY IN MAJOR APPLIANCES HOME ELECTRONICS AND FURNITURE SAID ARTHUR C MARTINEZ CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE MERCHANDISING GROUP HE ALSO CITED THE SOLID SALES CONTRIBUTIONS OF HARDWARE AS WELL AS MEN'S AND WOMEN'S APPAREL AN AREA ON WHICH HE PARTICULARLY PLANS TO FOCUS AS PART OF SEARS'S RECENTLY ANNOUNCED RESTRUCTURING MASS MERCHANDISER JC PENNEY CO BASED IN DALLAS DIDN'T FARE QUITE AS WELL BECAUSE IT MOVED A BIG FURNITURE PROMOTION TO FEBRUARY FROM JANUARY ITS SAMESTORE SALES FELL 1 CONSUMERS STILL SHOWED A PENCHANT FOR MALLSHOPPING EVEN AFTER THE GREEN AND RED DECORATIONS CAME DOWN WHICH HELPED SALES AT DEPARTMENT STORES CRITICIZED IN RECENT YEARS FOR BEING INEFFICIENT AND OUT OF TOUCH WITH CONSUMERS DEPARTMENT STORES ARE STARTING TO BETTER FOCUS THEIR MERCHANDISE AND CONTROL INVENTORY WITH IMPROVED TECHNOLOGY THEY'RE BEHAVING IN THEIR BEST MANNER IN FIVE YEARS SAID MR FEINER OF SALOMON THEY'VE LEARNED ANALYSTS ESTIMATED THAT DILLARD DEPARTMENT STORES INC LED THE DEPARTMENT STORES WITH A 10 TO 13 SAMESTORE SALES GAIN CINCINNATIBASED FEDERATED DEPARTMENT STORES INC WHICH POSTED A 39 INCREASE IN SAMESTORE SALES SAID IMPROVED INVENTORY MANAGEMENT HELPED IT OFFER FRESHER MERCHANDISE AND BETTER ASSORTMENTS AT MAY DEPARTMENT STORES CO IN ST LOUIS SAMESTORE SALES ROSE 6 WHILE DAYTON HUDSON CORP'S SAMESTORE SALES INCREASED 29 ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN & SONS INC SAID SALES COULD SLOW IN THE NEXT FEW MONTHS AS BIG CREDIT CARD BILLS FROM THE HOLIDAYS COME BACK TO HAUNT US A LITTLE BIT BUT HE ADDS WE SHOULD SEE SOME NICE CONTINUATION OF STRENGTH 9302050050 930205 FORD MOTOR CHANGES THE MINIVAN STAR IT'S WISHING UPON AEROSTAR WILL BE PHASED OUT IN FAVOR OF NEW WINDSTAR FRONTWHEELDRIVE MODEL BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FORD MOTOR CO TRYING TO BOOST ITS SHARE OF THE PROFITABLE MINIVAN MARKET SAID IT WILL RETIRE THE AEROSTAR NAME AND CHRISTEN ITS NEW FRONTWHEELDRIVE MINIVAN THE WINDSTAR FORD SAID AT THE CHICAGO AUTO SHOW THAT IT IS DITCHING THE AEROSTAR NAME USED ON ITS CURRENT REARWHEELDRIVE MINIVAN TO ELIMINATE CONFUSION THE TWO MINIVANS WILL BE ON THE MARKET TOGETHER FOR A FEW MONTHS NEXT YEAR FOLLOWING THE WINDSTAR'S INTRODUCTION BEFORE THE AEROSTAR IS PHASED OUT THE COMPANY SAID FORD IS TRYING TO AVOID THE CUSTOMER CONFUSION THAT OCCURRED IN 1990 WHEN IT SOLD THE NEW GENERATION ESCORT ALONGSIDE THE OLD MODEL OF THE SAME NAME IN ADDITION THE AEROSTAR HAS A LACKLUSTER IMAGE THAT FORD DOESN'T WANT FOR ITS NEW VAN WINDSTAR WOULD BE FORD'S FIRST AGGRESSIVE ATTEMPT AT CRACKING THE HEART OF THE GROWING MINIVAN MARKET NOW DOMINATED BY CHRYSLER CORP LAST FALL FORD INTRODUCED THE MERCURY VILLAGER MINIVAN BUT IT ONLY HAS THE CAPACITY TO BUILD 70000 TO 80000 VILLAGERS A YEAR THE WINDSTAR WILL BE BUILT AT FORD'S OAKVILLE ONTARIO PLANT WHICH HAS THE CAPACITY TO BUILD 300000 VEHICLES ANNUALLY FORD IS INVESTING 900 MILLION FOR THE CHANGES REQUIRED TO BUILD WINDSTAR IN ONTARIO WHERE THE FORD TEMPO AND MERCURY TOPAZ COMPACT CARS ARE BUILT FORD ISN'T RELEASING MANY DETAILS ON WINDSTAR BUT ROBERT REWEY FORD'S VICE PRESIDENT OF NORTH AMERICAN SALES SAID THE WINDSTAR WILL BE ABOUT THE SAME SIZE AS CHRYSLER'S EXTENDEDWHEELBASE GRAND CARAVAN THE WINDSTAR IS BUILT OFF THE SAME CHASSIS AS FORD'S TAURUS SEDAN THE TOPSELLING CAR IN THE US ACCORDING TO CHRISTOPER CEDERGREN AN ANALYST AT AUTOPACIFIC GROUP A CALIFORNIA CONSULTING FIRM MR CEDERGREN PREDICTS FORD WILL SELL TWICE AS MANY WINDSTARS AS IT DOES AEROSTARS LAST YEAR FORD SOLD 167000 AEROSTARS THE FRONTWHEELDRIVE WINDSTAR WILL HAVE A MUCH BROADER APPEAL WHILE MANY INDUSTRY OBSERVERS BELIEVE THE AEROSTAR LACKED A LOT THE QUALITIES NEW MINIVAN BUYERS ARE SEEKING THE COMBINATION OF THE REARWHEELDRIVE AND FORD'S SOFT MARKETING AMONG OTHER THINGS DAMPED SALES MR CEDERGREN SAID ANNUAL MINIVAN SALES WILL LIKELY REACH 13 MILLION BY THE MID1990S UP FROM 978000 MINIVANS IN 1992 FORD'S SHARE OF THE MINIVAN MARKET LAST YEAR WAS 19 COMPARED WITH CHRYSLER'S 48 SHARE AND GENERAL MOTORS CORP'S 25 SHARE THE WINDSTAR IS EXPECTED TO BE PRICED COMPETITIVELY WITH THE CHRYSLER MINIVANS WHICH RANGE FROM 14148 TO 27604 THE AEROSTAR IS PRICED BETWEEN 14460 AND 25260 CHRYSLER PLANS TO INTRODUCE ITS NEW GENERATION MINIVAN IN LATE 1994 OR EARLY 1995 AND GM PLANS TO REDESIGN ITS FRONTWHEELDRIVE MINIVAN IN LATE 1995 WE STILL THINK CHRYSLER WILL CONTINUE TO BE THE KINGPIN IN THE MINIVAN MARKET BUT FORD WILL BE A HARDCHARGING SECOND MR CEDERGREN SAID BOTH OF THEM WILL PUT THE SQUEEZE ON GM AND THE JAPANESE 9302050049 930205 BUSINESS BRIEF EL PASO REFINERY LP BANKRUPTCY COURT MODIFIES ORDER SHUTTING OPERATIONS EL PASO REFINERY LP WHICH FILED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN OCTOBER SAID THE BANKRUPTCY COURT MODIFIED A SHUTDOWN ORDER THE EL PASO TEXAS COMPANY IS A PARTNERSHIP WHOSE PRINCIPAL ASSET IS A PETROLEUM REFINERY AND TERMINAL FACILITY IN EL PASO THE REFINERY HAS BEEN SHUT DOWN BY COURT ORDER SINCE OCT 30 THE NEW ORDER ALLOWS EL PASO REFINERY TO ENTER INTO PROCESSING AGREEMENTS TO OPERATE THE REFINERY ON A LIMITED BASIS THE COMPANY WITH COURT APPROVAL CAN PRODUCE REFINED PRODUCTS FOR A SPECIFIC CUSTOMER THE COURT FURTHER ALLOWED THE COMPANY TO USE LENDERS' WORKING CAPITAL WITH CERTAIN RESTRICTIONS AND APPROVAL BY THE COURT EXAMINER FOR OPERATING THE REFINERY IN ADDITION EL PASO REFINERY AGREED TO TURN OVER TO THE WORKINGCAPITAL LENDERS THE GREATER OF EITHER 18 MILLION IN CASH OR 60 OF ITS CASH ON HAND AS OF JAN 20 AS PART OF THE NEW ORDER EL PASO REFINERY CAN REQUEST WITHOUT OBJECTIONS BY CREDITORS AN EXTENSION UNTIL APRIL 15 TO FILE ITS OWN PLAN OF REORGANIZATION 9302050048 930205 BUSINESS BRIEF SECURITY FEDERAL SAVINGS & LOAN HOLDERS APPROVE FORMATION OF THRIFT HOLDING COMPANY SECURITY FEDERAL SAVINGS & LOAN ASSOCIATION OF CLEVELAND SAID ITS SHAREHOLDERS APPROVED A REORGANIZATION THAT CREATES A HOLDING COMPANY FOR THE THRIFT ASSOCIATION THE HOLDING COMPANY WILL BE CALLED SECURITY FIRST CORP AND SECURITY FEDERAL WILL BE ITS WHOLLY OWNED SUBSIDIARY THE REORGANIZATION CALLS FOR EACH SHARE OF SECURITY FEDERAL COMMON STOCK TO BE EXCHANGED FOR ONE SHARE OF SECURITY FIRST CORP COMMON STOCK THE NEW STOCK WILL BEGIN TRADING NEXT WEEK ON NASDAQ UNDER THE CURRENT SYMBOL OF SFSL THE REORGANIZATION HAS ALREADY BEEN APPROVED BY THE OFFICE OF THRIFT SUPERVISION SECURITY FEDERAL SAID SECURITY FEDERAL WITH NINE OFFICES IN NORTHEASTERN OHIO HAS ASSETS OF 378 MILLION 9302050047 930205 BUSINESS BRIEF PROCTER & GAMBLE CO INVESTMENT PLANS TAKE SHAPE FOR DIAPER PLANT IN POLAND PROCTER & GAMBLE CO SAID IT WILL INVEST 50 MILLION TO 60 MILLION TO BUILD A DIAPER MANUFACTURING PLANT IN POLAND WITH SUBSTANTIALLY MORE INVESTMENT LIKELY AS THE BUSINESS GROWS WHILE SOME OF THE DISPOSABLE PAMPERS BRAND DIAPERS IT WILL PRODUCE WILL BE SOLD WITHIN POLAND THE COMPANY PLANS TO EXPORT THE MAJORITY TO OTHER COUNTRIES IN THE REGION P&G BY FAR THE LEADING MAKER OF DISPOSABLE DIAPERS IN WESTERN EUROPE SAID THE PLANT WILL BROADEN ITS DOMINANCE TO EASTERN EUROPE PUSHING IT INTO FRONTIERS WHERE DISPOSABLE DIAPERS ARE NOT AVAILABLE ITS CHIEF US RIVAL KIMBERLYCLARK CORP HASN'T YET MARKETED IN EUROPE THE CINCINNATI CONSUMER PRODUCTS CONCERN SAID THAT THE WARSAW PLANT WOULD OPEN SOMETIME AFTER 1993 WILL EMPLOY ABOUT 300 AND GENERATE 650 TO 750 ADDITIONAL JOBS AT P&G SUPPLIERS 9302050046 930205 ABREAST OF THE MARKET DOW JONES INDUSTRIALS JUMP 4295 TO CLOSE AT A RECORD OF 341674 BY ANITA RAGHAVAN AND CRAIG SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE FINALLY SMASHED THROUGH ITS RECORD FALLING INTEREST RATES HERE AND ABROAD TRIGGERED A RALLY THAT SENT STOCK PRICES SURGING FOR THE SECOND STRAIGHT DAY THE DOW JONES INDUSTRIALS JUMPED 4295 POINTS OR 127 TO 341674 TOPPING THE PREVIOUS RECORD OF 341321 SET JUNE 1 1992 THE INDEX HAS RISEN 8807 POINTS OR 265 IN THE PAST TWO DAYS WITH ITS RECORD CLOSE THE DOW JONES INDUSTRIAL AVERAGE JOINS THE OTHER MAJOR MARKET INDEXES THAT HAVE BEEN SETTING HIGHS ALL WEEK STANDARD & POOR'S 500STOCK INDEX SOARED 236 POINTS TO 44956 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SAILED 153 POINTS HIGHER TO 24798 BOTH INDEXES CLIMBED TO HIGHS FOR THE FOURTH STRAIGHT DAY VOLUME ON THE BIG BOARD WAS THE EIGHTH HEAVIEST IN HISTORY WITH 346480000 SHARES CHANGING HANDS A MODEST INCREASE OVER THE HEAVY TRADING WEDNESDAY ADVANCERS OUTNUMBERED DECLINERS 1341 TO 623 ANALYSTS SAID STOCKS WERE GALVANIZED FROM THE OPENING BELL BY NEWS THE BUNDESBANK HAD CUT THE LOMBARD RATE THE INTEREST RATE CHARGED FOR SUPPLEMENTAL BORROWINGS FROM GERMANY'S CENTRAL BANKS THAT USE SECURITIES AS COLLATERAL TO 9 FROM 95 THE MOVE INCREASES THE PROSPECT EUROPEAN ECONOMIES WILL IMPROVE UNLEASHING DEMAND FOR AMERICAN GOODS THE RALLY GAINED MOMENTUM AS US INTEREST RATES CONTINUED TO SINK THE LOWER INTEREST RATE SCENARIO TRIGGERED BY THE LOMBARD RATE CUT IN EUROPE AND THE LONGBOND YIELD COMING DOWN SPARKED A SIGNIFICANT CYCLICAL RALLY IN THE US SAID TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST A SUBSIDIARY OF HONGKONG & SHANGHAI BANK MR LOVE SAID RECENT ECONOMIC REPORTS CONFIRM THE ECONOMY IS RECOVERING THE REBOUNDING ECONOMY IS DRIVING MORE AND MORE INVESTORS TO THE STOCKS OF COMPANIES THAT ARE SENSITIVE TO THE ECONOMIC CYCLE YESTERDAY INVESTORS TOOK SOME OF THE PROFITS MADE IN SMALL STOCKS IN RECENT WEEKS AND REDIRECTED THE MONEY TO THE BIG CYCLICAL ISSUES I THINK THE DOW IS JUST CATCHING UP WITH THE REST OF THE MARKET SAID GAIL DUDACK MARKET STRATEGIST AT SG WARBURG SOME OF THE BIGGEST CYCLICAL ISSUES LED YESTERDAY'S RALLY ALUMINUM CO OF AMERICA GAINED 2 TO 76 PHELPS DODGE ROCKETED UP 3 3/8 TO 53 7/8 GEORGIAPACIFIC ADDED 3 1/8 TO 65 7/8 FORD RALLIED 2 3/8 TO 50 1/8 MINNESOTA MINING & MANUFACTURING ADVANCED 4 7/8 TO 105 5/8 AND MEAD CLOSED AT 41 1/8 UP 1 7/8 NOT ALL THE BIG BOARD'S BIG STOCKS WERE WINNERS HOWEVER WHILE CHRYSLER TOPPED THE MOSTACTIVE LIST WITH A GAIN OF 3/4 TO 39 3/4 GENERAL MOTORS WAS RIGHT BEHIND WITH A 1 3/8POINT LOSS TO 37 3/4 AN ATLANTA JURY RULED AGAINST GM IN A CASE CHARGING THE COMPANY WITH LIABILITY FOR INJURIES SUFFERED IN A GM PICKUP TRUCK THAT EXPLODED IN AN ACCIDENT BECAUSE OF AN ALLEGED FAULTY GASTANK DESIGN WASTE MANAGEMENT ALSO FELL ON HEAVY VOLUME LOSING 1 3/4 TO 37 3/4 AFTER REPORTING DISAPPOINTING FOURTHQUARTER PROFIT THE COMPANY REPORTED PROFIT OF 42 CENTS A SHARE BEFORE A CHARGE THAT REDUCED NET TO 37 CENTS A SHARE THE COMPANY ALSO EARNED 42 CENTS A SHARE IN 1991'S FOURTH QUARTER BUT CHARGES IN THAT PERIOD REDUCED PERSHARE NET TO FIVE CENTS MATTEL LOST 4 1/2 TO 24 IN HEAVY TRADING THE COMPANY'S FOURTHQUARTER PROFIT OF 35 CENTS A SHARE FELL FAR BELOW ANALYSTS' EXPECTATIONS WHICH WERE CLOSER TO 43 CENTS MATTEL EARNED 29 CENTS IN THE QUARTER A YEAR EARLIER AMSCO INTERNATIONAL FELL 6 1/2 TO 23 3/8 AFTER SAYING IT EXPECTS TO REPORT FOURTHQUARTER FULLY DILUTED PROFIT OF 46 CENTS A SHARE BELOW ANALYSTS' EXPECTATIONS OF AROUND 50 CENTS MANY DRUG STOCKS RESUMED THEIR SLIDE MERCK LOST 1 1/8 TO 38 BRISTOLMYERS SQUIBB FELL 1 TO 58 AND AMERICAN HOME PRODUCTS FELL 3/8 TO 62 3/4 AMERICAN STOCK EXCHANGE VOLUME TOTALED 22417000 SHARES UP FROM 22250000 WEDNESDAY THERE WERE 330 ADVANCERS AND 260 DECLINERS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EDGED UP 062 TO 41551 STILL SHORT OF ITS RECORD OF 41899 SET MORE THAN A YEAR AGO 9302050045 930205 BUSINESS BRIEF TEXTRON INC NET FOR 4TH PERIOD ROSE 85 ON FINANCIALSERVICES GAIN TEXTRON INC POSTED A RISE OF 85 IN FOURTHQUARTER PROFIT DUE TO STRONG PERFORMANCE OF ITS FINANCIAL SERVICES UNIT NET INCOME ROSE TO 904 MILLION OR 102 A SHARE FROM 833 MILLION OR 95 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 71 TO 216 BILLION FROM 201 BILLION THE PROVIDENCE RI COMPANY REPORTED A LOSS FOR THE FULL YEAR BECAUSE OF A ONETIME NONCASH CHARGE IT TOOK TO ACCOUNT FOR POSTRETIREMENT HEALTH BENEFITS FOR US EMPLOYEES THE CHARGE OF 6795 MILLION ALMOST ALL OF WHICH THE COMPANY RECORDED IN A RESTATEMENT OF ITS FIRSTQUARTER EARNINGS RESULTED IN A LOSS OF 3554 MILLION OR 401 A SHARE FOR THE YEAR IN 1991 NET WAS 2995 MILLION OR 342 A SHARE REVENUE ROSE 65 TO 835 BILLION FROM 784 BILLION THE EARNINGS WERE LED BY OPERATING PROFIT OF 965 MILLION IN TEXTRON'S FINANCIAL SERVICES DIVISON WHICH DEALS HEAVILY IN CONSUMER FINANCE A 154 MILLION INCREASE OVER THAT DIVISION'S OPERATING PROFIT IN THE YEARAGO QUARTER THAT MORE THAN OFFSET OPERATING PROFIT OF 458 MILLION IN TEXTRON'S COMMERCIAL PRODUCTS DIVISION MOSTLY ENGINES AND COMPONENTS FOR COMMERCIAL PRODUCTS WHICH IS 5 MILLION LESS THAN THAT LINE EARNED IN THE YEARAGO QUARTER OPERATING EARNINGS IN THE COMPANY'S AEROSPACE AREA WERE EVEN WITH THE YEARAGO QUARTER 9302050044 930205 BUSINESS BRIEF CHARTER FSB BANCORP INC UNIT SIGNS LETTER TO ACQUIRE GIBRALTAR SAVINGS BANK CHARTER FSB BANCORP INC AND GIBRALTAR SAVINGS BANK SLA SAID THEY SIGNED A LETTER OF INTENT FOR CHARTER FEDERAL SAVINGS BANK CHARTER FSB'S MAIN UNIT TO ACQUIRE GIBRALTAR AT THE SAME TIME GIBRALTAR WOULD CONVERT FROM MUTUAL TO STOCK OWNERSHIP UNDER THE PRELIMINARY TERMS GIBRALTAR'S EMPLOYEES AND CUSTOMERS WITH ACCOUNTS DATING BEFORE OCT 31 1992 WOULD HAVE A CHANCE TO GET EQUITY IN THE RESULTING ORGANIZATION A CHARTER SPOKESMAN DECLINED TO INDICATE THE VALUE OF THE MERGER HEADQUARTERED IN NEWARK NJ GIBRALTAR HAS ABOUT 97 MILLION IN ASSETS AND FOUR NORTHERN NEW JERSEY OFFICES A CHARTER SPOKESMAN SAID AND CHARTER BASED IN RANDOLPH NJ HAS ASSETS OF 367 MILLION AND 10 BRANCHES 9302050043 930205 BUSINESS BRIEF CISCO SYSTEMS INC NETWORKING GEAR FIRM POSTS BIG RISE IN 2NDQUARTER NET CISCO SYSTEMS INC BENEFITING FROM STRONG DEMAND FOR EQUIPMENT THAT HOOKS COMPUTERS INTO NETWORKS SAID ITS FISCAL SECONDQUARTER PROFIT MORE THAN DOUBLED THE MENLO PARK CALIF CONCERN SAID NET INCOME IN THE QUARTER ENDED JAN 24 WAS 387 MILLION OR 60 CENTS A SHARE COMPARED WITH 184 MILLION OR 29 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED 96 TO 145 MILLION FROM 74 MILLION THE EARNINGS WERE AT THE HIGH END OF ESTIMATES BY ANALYSTS WHICH RANGED FROM 50 CENTS TO 61 CENTS ACCORDING TO ZACK'S CORPORATE EARNINGS ESTIMATOR CISCO MAKES NETWORKING HARDWARE CALLED ROUTERS BRIDGES AND SERVERS WHICH LINK DISPARATE COMPUTER SYSTEMS TOGETHER IT HAS BENEFITED FROM COMPANIES MOVING AWAY FROM BIG MAINFRAME COMPUTERS AND TOWARD COMPUTER NETWORKS FOR THE SIX MONTHS CISCO SAID NET ROSE TO 719 MILLION OR 112 A SHARE FROM 339 MILLION OR 54 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 97 TO 2715 MILLION FROM 1376 MILLION 9302050042 930205 OTC FOCUS NASDAQ SHARES INCH UP TO NEW HIGH BUT PROFITTAKING HOLDS DOWN GAINS BY MARY ROMANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS MANAGED TO INCH UP TO A NEW RECORD AFTER SPENDING NEARLY THE ENTIRE SESSION SURRENDERING TO PROFITTAKING THE NASDAQ MARKET HOWEVER COULDN'T MATCH THE RECORD GAINS OF ITS NEW YORK STOCK EXCHANGE RIVALS THE NASDAQ COMPOSITE INDEX FINISHED THE SESSION UP 018 POINT OR 003 AT A NEW CLOSING HIGH OF 70885 SQUEEZING PAST THE RECORD 70867 SET WEDNESDAY THE NASDAQ SYSTEM COULDN'T KEEP UP WITH ITS COMPETITION THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 153 TO 24798 THE DOW JONES INDUSTRIAL AVERAGE ROCKETED TO A RECORD CLOSING HIGH THE INDUSTRIALS CLOSED WITH A 4295POINT GAIN AT 341674 MOVING PAST THE 341321 RECORD SET EARLY LAST JUNE THE NASDAQ MARKET GENERALLY HAS OUTPACED THE LARGER STOCKS AND THAT SHOULD THROW UP A RED FLAG WE SHOULD LOOK FOR A CORRECTION TO COME SAID LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO MANY OF THE NASDAQ'S BIGGEST ISSUES WERE AMONG THE MOST ACTIVE AMID PROFITTAKING THERE'S NO PANIC SELLING I'VE GOT AN EQUAL LIST OF BUYS AND SELLS SAID ROBERT O'TOOLE SR HEAD OF NASDAQ INSTITUTIONAL SALES AT LEHMAN BROTHERS MARKET PLAYERS SAID YESTERDAY'S TRADING ALSO WAS MARKED BY INVESTORS' ROTATING OUT OF NASDAQ ISSUES AND INTO STOCKS LISTED ON THE BIG BOARD THE NASDAQ WAS VERY STRONG IT REACHED NEW HIGHS SO IT'S TAKING A LITTLE REST BUT THINGS ARE STILL TRADING LEHMAN'S MR O'TOOLE SAID AMGEN WAS THE THIRDMOST ACTIVE ISSUE IN THE SESSION GAINING 2 1/2 TO 59 3/4 KIDDER PEABODY INITIATED INVESTMENT COVERAGE OF THE BIOTECHNOLOGY COMPANY WITH A BUY RATING IN ADDITION AMGEN SAID ITS FOURTHQUARTER NET INCOME WAS 1338 MILLION OR 91 CENTS A SHARE ON A 771 MILLION PRETAX GAIN COMPARED WITH 60 MILLION OR 41 CENTS A SHARE A YEAR EARLIER ANOTHER BIOTECH STOCK IMMUNOGEN DIDN'T FARE AS WELL IT LOST 2 1/4 TO 7 1/4 AFTER HAMBRECHT & QUIST BIOTECH ANALYST WOLE M FAYEMI DOWNGRADED THE STOCK TO HOLD FROM BUY CITING THE DELAY IN THE PHASE III CLINICAL TRIAL OF THE COMPANY'S LEAD PRODUCT ONCOLYSIN B TO TREAT BCELL LYMPHOMA A NEW ISSUE PROXIMA CORP WHICH MAKES LIQUID CRYSTAL DISPLAY PROJECTION PRODUCTS USED IN PERSONAL COMPUTERS REMAINED UNCHANGED AT 15 1/4 IN HEAVY TRADING LATE WEDNESDAY PROXIMA PRICED TWO MILLION SHARES AT 13 EACH SEVERAL RETAIL ISSUES GAINED ON THE NEWS THAT SAMESTORE SALES INCREASED UNITED RETAIL GROUP GAINED 3 TO 27 3/4 THE ROCHELLE PARK NJ COMPANY SAID JANUARY SAMESTORE SALES ROSE 9 FROM A YEAR AGO AND TOTAL SALES ROSE 37 YOUNKERS GAINED 2 5/8 TO 32 1/2 JANUARY SAMESTORE SALES INCREASED 19 FROM A YEAR EARLIER AND TOTAL SALES FOR JANUARY WERE 266 MILLION COMPARED WITH 137 MILLION A YEAR AGO AN INCREASE OF 94 THE DES MOINES IOWA COMPANY SAID LECHTERS JUMPED 1 5/8 TO 24 1/8 THE COMPANY SAID JANUARY SAMESTORE SALES INCREASED 11 FROM A YEAR EARLIER AND TOTAL SALES ROSE 70 IPL SYSTEMS FELL 2 1/4 TO 6 1/4 THE MAKER OF STORAGE PRODUCTS FOR INTERNATIONAL BUSINESS MACHINES COMPUTERS SAID IT ESTIMATES 1992 NET INCOME AT 3 MILLION AFTER A CHARGE OF 1 MILLION COMPARED WITH NET INCOME OF 94 MILLION A YEAR AGO MENTOR DROPPED 2 3/8 TO 12 1/8 AFTER A REPORT IN THE WALL STREET JOURNAL THAT A GROWING NUMBER OF RESEARCHERS ARE LINKING SILICONEGEL IMPLANTS TO NEW DISEASES IN THE HUMAN IMMUNE SYSTEM MENTOR IS THE ONLY COMPANY THAT STILL MAKES SILICONEGEL IMPLANTS NUKOTE HOLDINGS GAINED 1 3/8 TO 18 THE COMPANY REPORTED THIRDQUARTER OPERATING EARNINGS OF 29 MILLION OR 34 CENTS A SHARE COMPARED WITH 14 MILLION OR 24 CENTS A SHARE A YEAR EARLIER SLM INTERNATIONAL DROPPED 1 1/4 TO 23 3/4 AFTER IT REPORTED EARNINGS BELOW ANALYSTS' ESTIMATES IT POSTED FOURTHQUARTER EARNINGS OF 38 CENTS A SHARE ANALYSTS HAD EXPECTED 39 CENTS 9302050041 930205 VONS FACES FOODMAKER SUIT OVER CONTAMINATED MEAT SAN DIEGO FOODMAKER INC PARENT OF THE JACK IN THE BOX RESTAURANTS SUED VONS COS AND OTHER COMPANIES FOR ALLEGEDLY SUPPLYING CONTAMINATED MEAT TO THE FASTFOOD CHAIN IN RECENT WEEKS MORE THAN 425 PEOPLE IN WASHINGTON STATE IDAHO AND NEVADA HAVE GOTTEN SERIOUSLY ILL AFTER EATING JACK IN THE BOX HAMBURGERS AT LEAST ONE CHILD HAS DIED THE LAWSUIT FILED YESTERDAY IN STATE COURT HERE CHARGES THAT VONS WHICH PROCESSED THE MEAT AND ITS SUPPLIERS PROVIDED FOODMAKER WITH HAMBURGER THAT WAS DEFECTIVE AND ALLEGEDLY UNSAFE FOR ITS INTENDED PURPOSE IN THAT SAID MEAT PRODUCTS CONTAINED UNSAFE LEVELS OF BACTERIA A SPOKESWOMAN FOR VONS BASED IN ARCADIA CALIF SAID WE CONTINUE TO BE CONFIDENT THAT VONS PROCESSING DID NOT CONTAMINATE THE MEAT SHE SAID HEALTH AUTHORITIES HAVE MADE IT CLEAR THAT PROPER COOKING WOULD HAVE PREVENTED THIS TRAGEDY THE SUIT MAKES A NUMBER OF ADDITIONAL CLAIMS AGAINST VONS AND THE OTHER DEFENDANTS INCLUDING NEGLIGENCE MISREPRESENTATION OF FACT AND NEGLIGENT INTERFERENCE WITH ECONOMIC RELATIONS THE SUIT ASKS ALL THE DEFENDANTS TO PAY FOODMAKER'S LEGAL COSTS ARISING OUT OF THE CRISIS AND DAMAGES FOR LOST BUSINESS 9302050040 930205 BUSINESS BRIEF SEIBELS BRUCE GROUP INC FIRM RAISES LOSS ESTIMATE FROM HURRICANE ANDREW SEIBELS BRUCE GROUP INC COLUMBIA SC INCREASED ITS LOSS ESTIMATE FROM HURRICANE ANDREW FOR THE SECOND TIME TO 354 MILLION FROM 267 MILLION AND STEPPED UP ITS EFFORT TO SHRINK ITS INSURANCE PORTFOLIO THE COMPANY SAID IT IS IN THE FINAL CONTRACT STAGE OF NEGOTIATING A DEAL THAT WOULD MAKE SEIBELS BRUCE A MANAGING AGENT OF THE GENERALI GROUP'S US BRANCH FOR MOST OF ITS POLICIES SEIBELS BRUCE SAID THAT IT WOULD CONTINUE TO WRITE PERSONAL LINES FOR ITSELF BUT THAT IT WOULD WRITE COMMERCIAL LINES FOR GENERALI'S ACCOUNT GENERALI BASED IN TRIESTE ITALY WOULD GIVE SEIBELS BRUCE A COMMISSION AND PARTICIPATION IN PROFITS FOR NEW POLICIES SEIBELS BRUCE SAID STERLING E BEALE CHAIRMAN OF SEIBELS BRUCE SAID THE COMPANY'S STATUTORY CAPITAL WILL TOTAL 20 MILLION AFTER THE INCREASED ANDREW LOSSES BUT THAT ITS PREMIUMS WILL BE ROUGHLY THE SAME 9302050039 930205 LAW LEGAL BEAT FEDERAL JUDGE ORDERS SANCTIONS AGAINST 3 SHAREHOLDERS' LAWYERS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE DECLARED WAR ON THE CORPORATE EQUIVALENT OF AMBULANCE CHASING JUDGE LOUIS C BECHTLE IN PENNSYLVANIA ORDERED SANCTIONS AGAINST THREE SHAREHOLDERS' LAWYERS INCLUDING A PARTNER AT GREENFIELD & CHIMICLES ONE OF THE NATION'S LARGEST PLAINTIFFS' FIRMS THE JUDGE CHIDED THE GREENFIELD FIRM IN PARTICULAR FOR ALLEGEDLY DRUMMING UP LITIGATION BY ENLISTING SHAREHOLDERS TO FILE LAWSUITS AGAINST COMPANIES FACING ADVERSITY THERE IS STRONG EVIDENCE TO SUGGEST THAT GREENFIELD & CHIMICLES MAINTAINS A LIST OF POTENTIAL CLIENTS TO BE PRESSED INTO SERVICE AT THE DROP OF CERTAIN STOCK PRICES THE JUDGE WROTE IN A CASE INVOLVING SHAREHOLDER LAWSUITS AGAINST US HEALTHCARE INC ALTHOUGH THIS PRACTICE MAY NOT BE ILLEGAL IT CERTAINLY RAISES QUESTIONS ABOUT THE ETHICAL STANDARDS APPLIED BY THE ATTORNEYS PRACTICING AT THIS FIRM JUDGE BECHTLE DISMISSED TWO OF THE THREE SUITS THE LAWYERS HAD FILED AGAINST US HEALTHCARE A HEALTH MAINTENANCE ORGANIZATION IN BLUE BELL PA HE ALSO ORDERED JAMES R MALONE JR OF GREENFIELD & CHIMICLES AND THE OTHER TWO PLAINTIFFS' LAWYERS HARRIS J SKLAR A SOLO ATTORNEY IN PHILADELPHIA AND ARNOLD LEVIN A NAME PARTNER AT PHILADELPHIABASED LEVIN FISHBEIN SEDRAN & BERMAN TO PAY US HEALTHCARE'S LEGAL FEES IN BRINGING THE MOTIONS FOR SANCTION THOSE FEES MAY REACH 50000 JUDGE BECHTLE REFERRED THE CASE TO PENNSYLVANIA'S STATE DISCIPLINARY BODY TO SEE IF ADDITIONAL PUNISHMENT IS WARRANTED THE FIRST TWO LAWSUITS IN THE US HEALTHCARE CASE WERE FILED NOV 4 THE SAME DAY THAT AN ARTICLE APPEARED IN THE WALL STREET JOURNAL ABOUT STOCK SALES BY COMPANY INSIDERS PRIOR TO THE ANNOUNCEMENT OF THIRDQUARTER LOSSES THE LAWSUITS ALLEGED THAT THE COMPANY MISLED INVESTORS A LAWYER FOR US HEALTHCARE DENIES THE ALLEGATIONS NOTING THE STOCK HAS SINCE REBOUNDED TO ITS PRICE BEFORE THE ANNOUNCEMENT OF THE THIRDQUARTER LOSS IN 1992 ACCORDING TO JUDGE BECHTLE'S OPINION MR MALONE IMMEDIATELY CHECKED OUT OTHER NEWSPAPER ARTICLES ABOUT US HEALTHCARE AND LOOKED AT ITS REGULATORY FILINGS HE THEN CALLED ROBERT GREENFIELD A RETIREE IN SARASOTA FLA WHO HAD PROVIDED A LIST OF HIS SHAREHOLDINGS TO GREENFIELD & CHIMICLES ROBERT GREENFIELD IS NOT RELATED TO THE RICHARD GREENFIELD WHO IS SENIOR PARTNER OF GREENFIELD & CHIMICLES MR MALONE ASKED ROBERT GREENFIELD IF THE FIRM COULD FILE A CLASSACTION LAWSUIT IN THE RETIREE'S NAME MR GREENFIELD AGREED IT TURNED OUT HOWEVER THAT ROBERT GREENFIELD WHO HAS BEEN USED BY GREENFIELD & CHIMICLES TO FILE SEVERAL OTHER CLASSACTION LAWSUITS HAD A CONFLICT OF INTEREST HIS SON DID SIGNIFICANT BUSINESS WITH US HEALTHCARE THE COMPANY RETALIATED BY CUTTING OFF THAT WORK ROBERT GREENFIELD WANTED TO GET OUT OF THE SUIT BUT HE SAYS GREENFIELD & CHIMICLES BALKED AT WITHDRAWING THE CASE JUDGE BECHTLE FOUND THAT MR MALONE DIDN'T DO ENOUGH TO DETERMINE WHETHER HIS CLIENT ROBERT GREENFIELD HAD A CONFLICT THAT WOULD INTERFERE WITH HIS ROLE AS LEAD PLAINTIFF IN THE CLASS ACTION IN THE RUSH TO BE THE FIRST TO FILE A CLASSACTION LAWSUIT AGAINST US HEALTHCARE WITH THE PROBABLE EXPECTATION OF BEING NAMED LEAD COUNSEL TO REPRESENT THE CLASS AND THUS OBTAINING THE MAJOR SHARE OF ANY FEES MALONE PUT HIS PECUNIARY INTERESTS ABOVE THAT OF HIS CLIENT AND COMPROMISED HIS CORRESPONDING ETHICAL OBLIGATIONS JUDGE BECHTLE WROTE JUDGE BECHTLE WROTE THAT MR MALONE'S APPROACH TO HIS CLIENT APPEARED TO BE PREVALENT AT THE LAW FIRM THE JUDGE ADDED IN A FOOTNOTE THAT HE WOULD HAVE PUNISHED THE ENTIRE FIRM NOT JUST THE PARTNER INVOLVED IN THE CASE IF THE LAW HAD PERMITTED BRUCE MCNEW A PARTNER AT HAVERFORD PABASED GREENFIELD & CHIMICLES WHO SPOKE FOR MR MALONE SAID THE FIRM IS CONSIDERING AN APPEAL MR MCNEW SAID THE FIRM BELIEVES JUDGE BECHTLE'S REASONING IS WRONG BECAUSE IT ESSENTIALLY SAYS THAT WE MAY NOT CONTACT A CLIENT ON MATTERS ON WHICH WE'VE BEEN RETAINED HE ALSO SAID THE FIRM AND MR MALONE HAVE DONE NOTHING UNETHICAL AS FOR THE OTHER TWO LAWYERS SANCTIONED JUDGE BECHTLE SAID THEY DIDN'T DO ENOUGH TO CHECK OUT WHETHER A LAWSUIT WAS WARRANTED READING A NEWSPAPER STORY AND RELYING ON WORK DONE BY MR MALONE ISN'T SUFFICIENT JUDGE BECHTLE WROTE MR LEVIN SAID HE MAY APPEAL MR SKLAR DID NOT RETURN A PHONE MESSAGE LEFT AT HIS OFFICE A WOMAN ANSWERING THE PHONE THERE SAID HE WAS NOT EXPECTED AT WORK THAT DAY A FOURTH PLAINTIFF'S LAWYER INVOLVED IN THE CASE FRED TAYLOR ISQUITH OF WOLF HALDENSTEIN ADLER FREEMAN & HERZ IN NEW YORK WAS NOT A TARGET OF THE JUDGE'S SANCTIONS A CASE HE INITIATED AGAINST U S HEALTHCARE REMAINS ALIVE BUT MR ISQUITH SAID HE HAS YET TO DECIDE IN LIGHT OF THE JUDGE'S RULING WHETHER TO PURSE THE LITIGATION IT'S A HUMDINGER MR ISQUITH SAID OF THE RULING I GUESS I SHOULD BE GLAD I DODGED THE BULLET THIS CASE IS NOT THE FIRST TIME THAT GREENFIELD & CHIMICLES HAS BEEN CRITICIZED FOR ITS RELATIONSHIP WITH CLIENTS LAST YEAR THE WALL STREET JOURNAL REPORTED IN A FRONTPAGE STORY THAT RICHARD GREENFIELD WAS THE SUBJECT OF DISCIPLINARY PROCEEDINGS IN FEDERAL COURT IN NEW JERSEY FOR ALLEGEDLY HIDING THE FACT THAT A PLAINTIFF HE USED TO INITIATE A CLASS ACTION WAS A BUSINESS ENTITY HE CONTROLLED THOSE PROCEEDINGS ARE STILL PENDING AND MR GREENFIELD HAS DENIED ANY WRONGDOING ROBERT K GREENFIELD VS US HEALTHCARE INC US DISTRICT COURT PHILADELPHIA 92CV6345 THE CALIFORNIA SUPREME COURT RULED THAT STATE UNIVERSITY STUDENTS CAN'T BE REQUIRED TO PAY FEES SUPPORTING CAMPUS POLITICAL CAUSES OR LOBBYING ACTIVITIES IN A 52 DECISION THE JUSTICES AGREED WITH A GROUP OF PUPILS AT THE UNIVERSITY OF CALIFORNIA BERKELEY WHO HAD CHALLENGED THE MANDATORY FEES CURRENTLY ABOUT 21 A PERSON ANNUALLY ON FIRST AMENDMENT GROUNDS THE CONSTITUTIONAL GUARANTEES OF FREE SPEECH AND ASSOCIATION DO NOT PERMIT THE STATE TO MAKE SPEECH A MATTER OF COMPULSION AND COERCION WROTE JUSTICE EDWARD PANELLI FOR THE MAJORITY SCHOOLS CAN CONTINUE TO FUND ACADEMIC OR CULTURAL GROUPS WHOSE PURPOSES ARE GERMANE TO THE UNIVERSITY'S MISSION BUT CAN'T USE MANDATORY FEES TO SUPPORT AN ORGANIZATION WHOSE EDUCATIONAL FUNCTION HAS BECOME MERELY INCIDENTAL TO ITS POLITICAL AND IDEOLOGICAL ACTIVITIES THE MAJORITY WROTE STUDENTS WHO OBJECT TO A PARTICULAR USE OF THEIR MONEY SHOULD BE ALLOWED TO DEDUCT A PORTION OF THE FEE THE COURT SUGGESTED THE DECISION FOLLOWS OTHER RECENT RULINGS IN CASES INVOLVING THE USE OF COMPULSORY FEES BY STATESUPPORTED INSTITUTIONS IN 1992 THE SECOND US CIRCUIT COURT OF APPEALS HELD THAT STATE UNIVERSITY OF NEW YORK ALBANY STUDENTS COULD BE CHARGED FOR A POLITICAL GROUP'S ONCAMPUS ACTIVITIES BUT NOT ITS OFFCAMPUS ACTIVITIES IN 1985 THE THIRD US CIRCUIT COURT OF APPEALS RULED THAT RUTGERS UNIVERSITY STUDENTS COULDN'T BE REQUIRED TO FUND THE NEW JERSEY PUBLIC INTEREST RESEARCH GROUP IN 1990 THE US SUPREME COURT PROHIBITED THE USE OF MANDATORY LAWYERS' DUES TO THE STATE BAR OF CALIFORNIA FOR POLITICAL AND LOBBYING ACTIVITIES UNRELATED TO THE PROFESSION IN A HARSH DISSENT IN THE CALIFORNIA STUDENT CASE JUSTICE ARMAND ARABIAN WROTE THAT THE MAJORITY'S DECISION WILL BE GREETED AS A JURISPRUDENTIAL DEBACLE TE MAJORITY HE WROTE CAN'T SUPPORT ITS CLAIM THAT SPEECH WITH AN IDEOLOGICAL' OR POLITICAL' MESSAGE IS ANY LESS EDUCATIONALLY BENEFICIAL THAN SPEECH WHICH LACKS SUCH POLITICAL CONTENT MARK HIMELSTEIN A LAWYER FOR THE REGENTS OF THE UNIVERSITY OF CALIFORNIA SAID THE REFUND SCHEME WOULD BE UNWORKABLE AND CONTROVERSIAL GROUPS WOULD BE THROWN OUT ON THE STREET ANTHONY T CASO A LAWYER FOR THE PACIFIC LEGAL FOUNDATION A NONPROFIT GROUP THAT HANDLED THE STUDENTS' APPEAL SAID THE CAMPUS ORGANIZATIONS SHOULDN'T HAVE TO DEPEND ON COMPELLED AID FROM PEOPLE WHO DON'T SUPPORT THEM FOR THE STATE TO BE TAKING SUCH AN ACTIVE ROLE IN THE FREE MARKET OF IDEAS IS A VERY DANGEROUS CONCEPT HE SAID SMITH VS REGENTS OF THE UNIVERSITY OF CALIFORNIA SUPREME COURT OF CALIFORNIA S006588 MICHAEL MILKEN HAS BEEN RELEASED FROM A HOLLYWOOD HALFWAY HOUSE INTO A SUPERVISED HOME CONFINEMENT PROGRAM THAT ALLOWS HIM TO LIVE AT HIS HOME IN NEARBY ENCINO CALIF AN AFFLUENT LOS ANGELES SUBURB THE FORMER HEAD OF DREXEL BURNHAM LAMBERT INC'S JUNKBOND DEPARTMENT HAD BEEN LIVING AT THE VINEWOOD COMMUNITY CORRECTIONAL CENTER SINCE JAN 4 HE WAS TRANSFERRED THERE AFTER SERVING 22 MONTHS AT A FEDERAL PRISON CAMP IN PLEASANTON CALIF HE PLEADED GUILTY TO SIX SECURITIESRELATED FELONIES IN 1990 ALL INMATES ARE CONSIDERED FOR PLACEMENT IN HOME CONFINEMENT PROGRAMS BEFORE THEY ARE RELEASED FROM SUPERVISION SAID A SPOKESWOMAN FOR THE US BUREAU OF PRISONS IN DUBLIN CALIF MR MILKEN RECEIVED THE SAME CONSIDERATION AS OTHER INMATES PROGRAM STAFF WILL VISIT MR MILKEN AT LEAST ONCE A WEEK AND WILL MAKE DAILY TELEPHONE CALLS AT RANDOM TIMES TO CHECK UP ON HIM THE SPOKESWOMAN SAID AMONG OTHER REQUIREMENTS HE MUST STAY AT HOME OR AT HIS JOB UNLESS HE RECEIVES SPECIAL PERMISSION TO GO ELSEWHERE MR MILKEN IS DOING RESEARCH FOR HIS ATTORNEY RICHARD SANDLER AND EVALUATING NUMEROUS REQUESTS FOR HELP FROM EDUCATIONAL ORGANIZATIONS AND COMMUNITY GROUPS AFTER HIS TWOYEAR PRISON SENTENCE ENDS MARCH 2 MR MILKEN IS REQUIRED TO DO THREE YEARS OF FULLTIME COMMUNITY SERVICE WHILE ON PROBATION DRUG MAKER ELI LILLY & CO WON'T HAVE TO REVEAL THE NAMES OF DOCTORS WHO TOLD THE COMPANY ABOUT ADVERSE REACTIONS TO PROZAC ITS ANTIDEPRESSANT THE TEXAS SUPREME COURT CITING THE PUBLIC INTEREST IN PRESERVING THE CONFIDENTIALITY OF THE REPORTING SYSTEM OVERTURNED A LOWER COURT'S RULING THAT WOULD HAVE FORCED LILLY TO DIVULGE THE NAMES AT A TRIAL IN DALLAS LAWYERS FOR THE FAMILY AND ESTATE OF MICHAEL H BIFFLE WHO ALLEGEDLY COMMITTED SUICIDE WHILE HE WAS UNDER THE INFLUENCE OF PROZAC CONTENDED THAT THE INFORMATION WAS NEEDED TO INVESTIGATE PROZAC'S EFFECTS FULLY THE SUPREME COURT DECISION OVERTURNED A RULING BY STATE COURT JUDGE JOHN M MARSHALL OF DALLAS THE STATE HIGH COURT CONCLUDED THAT THE TRIAL COURT DIDN'T APPLY THE PROPER LEGAL STANDARD WHILE IT AGREED WITH THE TRIAL JUDGE THAT FDA REGULATIONS DON'T PREEMPT TEXAS LAW THE SUPREME COURT SAID THE TRIAL COURT ABUSED ITS DISCRETION BY ORDERING LILLY TO IDENTIFY THOSE REPORTING ADVERSE REACTIONS TO PROZAC WITHOUT SHOWING THAT IT WAS RELEVANT AND NECESSARY IN THE BIFFLE FAMILY'S CASE THE MAJOR CONCERN RAISED BY LILLY HOWEVER AND SECONDED IN A BRIEF FILED WITH THE COURT BY THE FOOD AND DRUG ADMINISTRATION WAS THAT REVEALING THE IDENTITIES WOULD DESTROY THE VOLUNTARY REPORTING SYSTEM WITHOUT THE ASSURANCE OF CONFIDENTIALITY THE FDA WARNED FEWER DOCTORS AND PATIENTS WOULD REPORT ADVERSE REACTIONS BECAUSE OF FEAR OF ENTANGLEMENT IN LITIGATION AND POTENTIAL VIOLATION OF THE PHYSICIANPATIENT PRIVILEGE AN ATTORNEY FOR THE BIFFLES PAUL SMITH OF DALLAS SAID HE DISAGREED COMPLETELY WITH LILLY'S ARGUMENT THAT DISCLOSURE WOULD HAVE A CHILLING EFFECT ON REPORTING WE THINK PHYSICIANS ARE MORE INTERESTED IN THEIR PATIENTS' WELFARE THAN IN PRESERVING THEIR OWN ANONYMITY HE SAID IN ITS SUIT AGAINST LILLY MR BIFFLE'S FAMILY CONTENDS HE KILLED HIMSELF AS A RESULT OF TAKING PROZAC THE 45YEAROLD MAN HAD BEEN TAKING THE MEDICATION FOR SIX DAYS WHEN HE SHOT HIMSELF A SPOKESMAN FOR LILLY SAID THAT VARIOUS COURTS HAVE DISMISSED 43 SIMILAR SUITS CONTENDING THAT THE WIDELY PRESCRIBED DRUG CAUSED SUICIDAL OR VIOLENT BEHAVIOR JUDGE MARSHALL SAID HE EXPECTS TO SET A MIDYEAR TRIAL DATE FOR THE BIFFLE CASE WHO'S NEWS FORMER SOLICITOR GENERAL KENNETH STARR HAS JOINED THE WASHINGTON OFFICE OF KIRKLAND & ELLIS AND WILL SERVE ON THE FIRM'S POLICY COMMITTEE WOOED BY SEVERAL MAJOR FIRMS THE BUSH ADMINISTRATION'S CHIEF SUPREME COURT ADVOCATE SAID HE PICKED THE 400LAWYER CHICAGOBASED FIRM BECAUSE OF ITS STRONG LITIGATION SECTION AND ITS WILLINGNESS TO LET HIM CONTINUE TEACHING AMONG OTHER REASONS MR STARR A FORMER FEDERAL APPEALS COURT JUDGE SAID HE HOPES TO CONTINUE TO APPEAR BEFORE THE SUPREME COURT AS WELL AS TO DO LOWERCOURT LITIGATION AND INHOUSE CORPORATE INVESTIGATIONS HE BROUGHT WITH HIM TO KIRKLAND & ELLIS TWO HIGHLY TOUTED YOUNGER LAWYERS CHRISTOPHER LANDAU AND PAUL CAPPUCCIO BOTH OF WHOM SERVED AS CLERKS TO JUSTICE ANTONIN SCALIA AMY STEVENS CONTRIBUTED TO THIS COLUMN THREE SHAREHOLDER LAWSUITS WERE FILED AGAINST US HEALTHCARE INC IN NOVEMBER AFTER THE COMPANY ANNOUNCED AN INCREASE IN ITS MEDICAL LOSS RATIO OR COSTS AS A PERCENTAGE OF PREMIUMS PAID FOR THE 1992 THIRD QUARTER TWO OF THE SUITS WERE DISMISSED FRIDAY'S LEGAL BEAT COLUMN MISSTATED THE REASON THE LAWSUITS WERE FILED THE COMPANY REPORTED NET INCOME OF 479 MILLION FOR THAT QUARTER NOT A LOSS AS WAS INCORRECTLY STATED IN THE COLUMN 9302050038 930205 LEISURE & ARTS THE MOBILE GUIDE THE THINKING PERSON'S HOTEL BY BRIGID GRAUMAN AMSTERDAM AM I A MERE LUMP OF IMPURE CARBON AND WATER CREEPING AIMLESSLY ABOUT INSIDE A SMALL AND UNIMPORTANT ROOM IS THERE ANY UNITY OR PURPOSE TO THE ROOM WITH ITS BLACK FRIEZE NAMES OF GREEK PHILOSOPHERS PAINTED ABOVE IT IN GOLD AND ITS PICTURE OF RODIN'S THE THINKER IS SLEEPING IN A PHILOSOPHERS' HOTEL NOBLE OR BASE OR IS IT MERELY FUTILE IS THIS CITY INEXORABLY SINKING INTO ITS WATERY FOUNDATION AND IF SO IS IT REALLY WORTHWHILE WRITING AN ARTICLE ABOUT A PHILOSOPHERS' HOTEL CHEWING OVER THESE THOUGHTS AS I LAY ON MY BLACK BEDSPREAD TELEVISION SET DELIVERING THE EPHEMERAL MESSAGES OF CNN WIND FROM THE CANALS RATTLING THE WINDOWS I WONDERED WHETHER I SHOULDN'T PERHAPS GET UP AND PUT SOME OF THESE QUESTIONS TO PHILOSOPHER/HOTEL COOWNER IDA JONGSMA BUT IN THE NETHERLANDS A COUNTRY OF SEAFARERS MERCHANTS AND BUSINESSMEN PHILOSOPHERS TOO PREFER THEIR PHILOSOPHY PRACTICAL WE DUTCH PEOPLE CAN SELL ANYTHING SAID 44YEAROLD MS JONGSMA A TALL FORMER FLIGHT ATTENDANT WHOSE GRAY SWEATER AND STOCKINGS AND HORNRIMMED GLASSES WERE IN SHARP CONTRAST TO HER SHORT RED SKIRT WE WANT TO GET PHILOSOPHY ONTO THE MARKET SHE SAID BRISKLY REFERRING TO THE HANDFUL OF DUTCH MEN AND WOMEN WHO THINK THE WAY SHE DOES AFTER STUDIES IN CULTURAL ANTHROPOLOGY AT AMSTERDAM UNIVERSITY MS JONGSMA AND OTHER PHILOSOPHY GRADUATES DISCOVERED THAT THE DOORS OF THE ACADEMIC WORLD WERE BOLTED TIGHT A FEW PEOPLE HOLD A FEW JOBS FOR MANY YEARS SHE EXPLAINED FOR A WHILE MS JONGSMA WAS A HIGH SCHOOL TEACHER BUT SHE FOUND THAT EVERY YEAR SHE WAS GROWING OLDER WHILE THE STUDENTS STAYED THE SAME AGE DISTURBED BY THIS WIDENING GAP SHE DECIDED TO GO INTO BUSINESS HENCE THE HOTEL SHE CALLS DE FILOSOOF YOU DON'T HAVE TO BE A BONA FIDE PHILOSOPHER TO STAY IN THE HOTEL BUT YOU'LL CERTAINLY BE SURROUNDED BY THEM ONCE A MONTH MEMBERS OF THE 140STRONG ASSOCIATION OF PRACTICAL PHILOSOPHY FORMED BY MS JONGSMA A DECADE AGO MEET IN THE HOTEL'S COSY SALON TO SMOKE CIGARETTES DRINK MARTINIS AND JENEVER DUTCH GIN AND DISCUSS THE MEANING OF LIFE TEACHERS WRITERS BUSINESS MANAGERS ORGANIZERS OF CULTURAL EVENTS EVEN JOURNALISTS THEY ALL WANT TO TRANSLATE ABSTRACT PHILOSOPHY INTO THE LANGUAGE OF EVERYDAY SITUATIONS AND SHARE THEIR KNOWLEDGE WITH US ORDINARY MORTALS IN HER WILDER MOMENTS MS JONGSMA WHO BOUGHT THE HOTEL FIVE YEARS AGO WITH HER SISTER AND AMERICAN BROTHERINLAW HAD VISIONS OF A BLACKALLOVER ROOM FILLED WITH QUOTES FROM HEIDEGGER ABOUT DEATH BUT NOT EVERY GUEST WOULD WELCOME THIS REMINDER OF MORTALITY EVEN THE FAMOUS EXCLAMATION FROM GOETHE'S FAUST VERWEILE DOCH DU BIST SO SCHON STAY WITH ME YOU ARE SO BEAUTIFUL LED ONE COUPLE TO DEMAND ANOTHER ROOM THEY DIDN'T OBJECT TO THE SENTIMENT THEY JUST DIDN'T LIKE SNUGGLING DOWN WITH THE LINE IN OMINOUS GOTHIC SCRIPT JUST ABOVE THEIR HEADS BECAUSE THEY HAVE HAD TO SET THINGS UP PRETTY MUCH ON A SHOESTRING MS JONGSMA AND PARTNERS ARE TAKING THEIR TIME DECORATING THE PLACE THE ARISTOTLE ROOM WITH ITS CLASSICAL PEDIMENT PAINTED BRICK RED STILL NEEDS A TEXT SO DOES THE ROOM SHARED BY EINSTEIN AND GEORGE STEINER ON THE THEME OF COSMOLOGY THE ARISTOPHANES ROOM IS ALL ABOUT CLOUDS BUT THE CEILING NEEDS REPAINTING AFTER A LEAK A FUTURE WITTGENSTEIN ROOM IS ALMOST EMPTY EXCEPT FOR A SYMBOLIC LADDER AND WHO WILL BE BRAVE ENOUGH TO STAY IN A ROOM BEARING AN EROTIC TEXT HOWEVER PHILOSOPHICAL BY GEORGES BATAILLE HOLLAND HAS TRADITIONALLY BEEN THE LAND OF TOLERANCE IT TACKLED SUCH URGENT CONTEMPORARY ISSUES AS DRUGS ABORTION AND EUTHANASIA BEFORE ANYONE ELSE EVEN THOUGHT OF THEM AS ANYTHING MORE THAN CRIMINAL ACTIVITIES IN THE 17TH CENTURY HOLLAND WAS THE ONE COUNTRY WHERE MEN WERE ABLE TO SPECULATE FREELY DESCARTES FLED FRANCE AND PERSECUTION FOR SAFETY SPINOZA SPENT MANY A QUIET YEAR IN AMSTERDAM FREE TO EXPRESS HIS RADICAL THOUGHTS ON THEOLOGICAL MATTERS THE COLLECTED WORKS OF HOBBES APPEARED HERE IN 1688 WHILE IN ENGLAND HE WAS CONSIDERED A HERETIC LOCKE TEACHING THE RIGHT TO REBELLION TOOK REFUGE HERE WHEN ENGLAND WAS OUT TO PERSECUTE HIM LATER CAMUS USED THE CITY'S RING OF CANALS FOR THE SETTING OF THE FALL AND DESCRIBED HIS THOUGHTS ON AMSTERDAM IN THE STRANGER NOW IN 20THCENTURY HOLLAND MUNICIPAL OFFICIALS FROM SIX MAJOR CITIES HAVE ASKED THE PRACTICAL PHILOSOPHERS FOR HELP IN SOLVING VARIOUS SOCIAL PROBLEMS FROM A PHILOSOPHICAL STANDPOINT SIX STATE EMPLOYEES SPENT A DAY PHILOSOPHIZING ABOUT HOUSING IMMIGRATION OLD PEOPLE CRIMINALITY AMONG THE YOUNG AND ALIEN FAITHS YOU LOOK UNDER THE PROBLEM MS JONGSMA SAID BY WHICH SHE MEANT THAT COMMON PREJUDICES MAY BE FOUND TO BE BASED ON PROTESTANT TRADITION MARXIST IDEOLOGY MATERIALISTIC IDEALS ANYTHING BUT FACT PEOPLE NEED TO KNOW WHY THEY THINK A CERTAIN WAY SHE CONTINUED YOU HAVE TO FIGHT HARD TO MAKE PEOPLE THINK PHILOSOPHIZING IS LIKE READING A DIFFICULT BOOK DURING THE NIGHT I SPENT AT DE FILOSOOF STRETCHED OUT UNDER MY BLACK BEDSPREAD WITH THE BLACK CURTAINS KEEPING OUT THE DAYLIGHT THE HOTEL WAS BETTER THAN HALF FULL SCATTERED AMONG ITS 25 ROOMS WERE SIX FAMOUS LOGICIANS AND MATHEMATICIANS HERE FOR A CONGRESS AN AMERICAN PHILOSOPHER/ECOLOGIST A HANDFUL OF FEMINISTS AND A GROUP OF CUBAN ORNITHOLOGISTS AT BREAKFAST IN A BOOKLINED ROOM PILED WITH OLD NEW YORKER MAGAZINES AND JOURNALS OF PHILOSOPHY A QUIET CROWD DRANK WEAK COFFEE AND TUCKED INTO BREAD HAM CHEESE AND JAM THEN AS THE '50S POPUP TOASTER BEGAN TO SMOKE I FOUND MYSELF WONDERING NOW WHAT WOULD WITTGENSTEIN HAVE THOUGHT IF HE HAD BEEN FACED WITH A SLICE OF BURNT TOASTSTAR THE HOTEL DE FILOSOOF IS AT 6 ANNA VONDELSTRAAT TELEPHONE 0110206833013 FAX 0110206853750 MS GRAUMAN IS THE EDITOR OF THE BULLETIN AN ENGLISHLANGUAGE NEWS WEEKLY IN BRUSSELS 9302050037 930205 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES SOME ARMCO STEEL FUNCTIONS TO BE ASSUMED UNDER PACT ARMCO STEEL CO MIDDLETOWN OHIO SAID INTERNATIONAL BUSINESS MACHINES CORP WILL TAKE OVER ALL OF THE STEELMAKER'S DATA PROCESSING AND COMMUNICATIONS FUNCTIONS UNDER A 10YEAR AGREEMENT ARMCO STEEL VALUED THE CONTRACT AT SEVERAL MILLION DOLLARS EACH YEAR BUT DECLINED TO BE MORE SPECIFIC THE AGREEMENT BETWEEN IBM AND ARMCO STEEL A JOINT VENTURE BETWEEN ARMCO INC AND KAWASAKI STEEL CORP IS SIMILAR TO ONE ANNOUNCED RECENTLY BETWEEN BETHLEHEM STEEL CORP AND ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP ARMCO STEEL WHICH HAS ALREADY CUT EMPLOYMENT IN ITS DATA PROCESSING AND COMMUNICATIONS STAFF TO 90 FROM 200 LAST JULY SAID ALL 90 WILL BECOME IBM EMPLOYEES AND ALL WORK WILL BE DONE AT ARMCO STEEL'S OFFICES ARMCO STEEL'S VICE PRESIDENT FOR HUMAN RESOURCES MARK ESSIG SAID THE AGREEMENT SAVES COSTS AND GETS US OUT OF THE CAPITAL SPENDING CYCLE FOR COMPUTER HARDWARE IBM WILL SUPPLY THE HARDWARE WHICH ARMCO STEEL SAYS WOULD COST 50 MILLION OVER 10 YEARS 9302050036 930205 TECHNOLOGY BRIEF MERIDIAN DIAGNOSTICS INC FDA APPROVES MARKETING OF A DIGESTIVE ILLNESS TEST MERIDIAN DIAGNOSTICS INC CINCINNATI SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE TO BEGIN MARKETING A NEW DIAGNOSTIC TEST CALLED IMMUNOCARD CLOSTRIDIUM DIFFICILE CLOSTRIDIUM DIFFICILE IS A BACTERIUM WHICH PRODUCES A TOXIN THAT CAN CAUSE SERIOUS DIGESTIVE SYSTEM ILLNESSES THE DISEASE IS GENERALLY CAUSED BY AN ADVERSE REACTION TO ANTIBIOTICS IMMUNOCARD IS A CREDIT CARDSIZE DEVICE CAPABLE OF PERFORMING INDIVIDUAL ENZYME IMMUNOASSAYS ON DIARRHEAL STOOL SPECIMENS IN 15 MINUTES THE CURRENT WORLDWIDE MARKET FOR CLOSTRIDIUM DIFFICILE PRODUCTS IS ESTIMATED TO BE MORE THAN 12 MILLION MERIDIAN SAID THE COMPANY MAKES AND MARKETS IMMUNODIAGNOSTIC TEST KITS AND RELATED DIAGNOSTIC PRODUCTS 9302050035 930205 INTERNATIONAL BRIEF BAYER AG CHAIRMAN ESTIMATES NET FELL MORE THAN 15 IN '92 THE CHAIRMAN OF GERMAN CHEMICAL GROUP BAYER AG SAID THE COMPANY'S FOURTHQUARTER 1992 RESULTS WERE ABSOLUTELY UNSATISFACTORY AND THAT AN ESTIMATE OF A 15 DROP IN PROFIT FOR THE FULL YEAR MUST BE SOMEWHAT RAISED THE 1992 PROFIT HAS DROPPED SIGNIFICANTLY SAID BAYER CHAIRMAN MANFRED SCHNEIDER IN A RADIO INTERVIEW IN REGARD TO THE COMPANY'S 1992 DIVIDEND MR SCHNEIDER SAID HE HOPES BAYER CAN MAINTAIN ITS LEAD OVER GERMAN COMPETITORS HOECHST AG AND BASF AG IN 1991 BAYER PAID A DIVIDEND OF 13 MARKS 790 A SHARE WHILE HOECHST AND BASF EACH PAID 12 MARKS A SHARE BAYER'S GROUP SALES FELL ALMOST 3 TO ABOUT 41 BILLION MARKS 2492 BILLION IN 1992 MR SCHNEIDER SAID THE COMPANY HAD SALES OF 4240 BILLION MARKS IN 1991 BAYER PLANS TO CUT 3000 JOBS IN 1993 MR SCHNEIDER SAID ADDING THAT CUTS WILL CONTINUE IN 1994 9302050034 930205 WHAT'S NEWS BUSINESS AND FINANCE STAR STOCKS SURGED SENDING THE DOW JONES INDUSTRIALS TO A RECORD ON GROWING ECONOMIC OPTIMISM IN THE US AND INTERESTRATE CUTS IN GERMANY AND JAPAN THE INDUSTRIAL AVERAGE JUMPED 4295 POINTS OR 13 TO 341674 IN VERY HEAVY TRADING BUT NASDAQ STOCKS ROSE ONLY SLIGHTLY BOND PRICES AND THE DOLLAR ADVANCED GENERAL MOTORS WAS ORDERED BY A JURY TO PAY 101 MILLION IN PUNITIVE DAMAGES TO THE PARENTS OF A 17YEAROLD WHO DIED IN A FIERY CRASH IN A GM PICKUP TRUCK THE VERDICT IS A BLOW TO GM'S EFFORTS TO DEFEND ITS 197387 PICKUPS AND THEIR SIDEMOUNTED GAS TANKS GM STOCK FELL 1375 TO 3775 LABOR PRODUCTIVITY JUMPED 27 IN 1992 THE LARGEST GAIN IN 20 YEARS AS US BUSINESSES RESPONDED TO INTENSE COMPETITION BY SLASHING COSTS SEPARATELY FACTORY ORDERS ROSE 53 IN DECEMBER AND WERE UP 33 FOR 1992 RETAIL CHAINS REPORTED THAT SALES IN JANUARY ROSE MORE THAN EXPECTED AS CONSUMERS REFUSED TO CUT BACK AFTER THEIR HOLIDAY SPENDING SPREE GERMANY'S CENTRAL BANK TRIMMED KEY INTEREST RATES IN RESPONSE TO POLITICAL AND ECONOMIC PRESSURE CUTTING THE LOMBARD RATE HALF A POINT TO 9 BUT ANALYSTS SAID THE CUTS WERE TOO SMALL TO SOLVE THE EUROPEAN CURRENCY CRISIS TRAVELERS CORP EXPECTS TO POST A 589 MILLION FOURTHQUARTER LOSS REFLECTING THE INSURER'S DECISION TO PURSUE THE SALE OF FORECLOSED PROPERTIES AN IBM PANEL PLANS TODAY TO START GOING OVER A LIST OF POTENTIAL CEO CANDIDATES WHO ARE SAID TO INCLUDE THE HEADS OF NORTHERN TELECOM HUGHES AIRCRAFT ALLIEDSIGNAL AND APPLE MICROSOFT'S ANTITRUST CASE IS EXPECTED TO BE ON THE FTC'S AGENDA TODAY AFTER A 2 1/2YEAR INVESTIGATION FTC LAWYERS HAVE URGED THE PANEL TO SEEK A COURT INJUNCTION TO HALT SOME OF THE SOFTWARE COMPANY'S PRACTICES A WORLD ENERGY AGENCY PROJECTED A FALL IN FIRSTQUARTER OIL DEMAND FROM A YEAR AGO CITING AN ACCELERATING DROP IN THE FORMER SOVIET UNION'S OIL USE BUT A RISE IS EXPECTED FOR ALL OF 1993 PRICES SURGED YESTERDAY ON SIGNS OF AN OPEC CONSENSUS ON CUTTING OUTPUT U S WEST PLANS TO MODERNIZE ITS PHONE NETWORK ALLOWING IT TO CARRY VIDEO AND VAST AMOUNTS OF DATA AT A 26YEAR COST OF ABOUT 132 BILLION MATTEL'S PROFIT ROSE 20 IN THE FOURTH PERIOD LESS THAN EXPECTED THE TOY MAKER'S STOCK SANK 450 TO 24 PHARMOR HIRED A NEW PRESIDENT AND SHUFFLED ITS TOP MANAGEMENT AS A FORMER EXECUTIVE PLEADED GUILTY TO DEFRAUDING THE DISCOUNT DRUG CHAIN WHEAT FUTURES PRICES TUMBLED AMID SKEPTICISM THAT THE CLINTON ADMINISTRATION CAN KEEP THE RUSSIAN FOOD CREDIT CRISIS FROM WORSENING CANADA'S METHANEX AGREED TO BUY THE METHANOL ASSETS OF NEW ZEALAND CONGLOMERATE FLETCHER CHALLENGE FOR ABOUT 730 MILLION IN STOCK AND CASH MAKING METHANEX THE WORLD'S LARGEST PRODUCER AND MARKETER OF METHANOL CAMPBELL SOUP ACQUIRED A MAJORITY STAKE IN ARNOTTS BUT THE AUSTRALIAN COOKIE AND CRACKER MAKER STILL INSISTS IT ISN'T UNDER CAMPBELL'S CONTROL A BUSINESS GROUP IS TRYING TO DERAIL A MOVE BY ACCOUNTING RULE MAKERS TO FORCE COMPANIES TO DEDUCT THE VALUE OF EXECUTIVE STOCK OPTIONS FROM PROFITS INSURANCE COMPANIES WERE ACCUSED BY A COMMUNITY GROUP OF SYSTEMATIC DISCRIMINATION AGAINST MINORITIES AND PEOPLE IN POOR NEIGHBORHOODS CONGRESSIONAL HEARINGS ARE PLANNED FIRST CHICAGO REACHED A TENTATIVE AGREEMENT TO SELL ABOUT 1 BILLION IN TROUBLED REAL ESTATE LOANS AND PROPERTIES TO A BUYER SAID TO BE GE CAPITAL BONDS LEHMAN BROTHERS TREASURY INDEX 485407 UP 1790 COMMODITIES OIL 2030 A BARREL UP 37 CENTS DOW JONES FUTURES INDEX 12384 UP 069 SPOT INDEX 12163 UP 003 DOLLAR 12465 YEN UP 029 16560 MARKS UP 00110 9302050033 930205 CORRECTIONS & AMPLIFICATIONS KOBE STEEL LTD PREDICTS THAT BY THE YEAR 2000 ITS STEEL BUSINESS WILL PROVIDE 29 OF THE COMPANY'S REVENUE THE FIGURE WAS INCORRECTLY REPORTED AS 25 IN A PAGE ONE ARTICLE TUESDAY UNITED TECHNOLOGIES CORP SAID WILLIAM H TRACHSEL IS A CORPORATE SECRETARY VICE PRESIDENT AND DEPUTY GENERAL COUNSEL AT THE COMPANY A WHO'S NEWS ITEM YESTERDAY INCORRECTLY REFERRED TO MR TRACHSEL AS THE COMPANY'S GENERAL COUNSEL NORTHERN TELECOM LTD SAID ROY MERRILLS HAS BEEN APPOINTED CHAIRMAN OF NORTHERN TELECOM INC AND A SENIOR VICE PRESIDENT OF NORTHERN TELECOM LTD A WHO'S NEWS ITEM YESTERDAY INCORRECTLY SAID GERALD J BUTTERS HAD BEEN APPOINTED TO THOSE POSITIONS MR BUTTERS IS PRESIDENT OF NORTHERN TELECOM INC THE US UNIT OF NORTHERN TELECOM LTD TORONTO 9302050032 930205 CREDIT MARKETS JUNK BOND DEFAULTS SHOULD RISE SLIGHTLY IN 1993 AFTER BIG DECLINE LAST YEAR SAYS MOODY'S STUDY BY TERENCE DONNELLY AND GENE COLTER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK JUNK BOND DEFAULTS IN 1993 SHOULD RISE SLIGHTLY AFTER FALLING SHARPLY LAST YEAR ACCORDING TO MOODY'S INVESTORS SERVICE INC MOODY'S PREDICTED THAT 53 OF JUNK CORPORATE BOND ISSUERS WILL MISS PAYMENTS ON OUTSTANDING BONDS IN 1993 THAT COMPARED WITH A 37 BOND DEFAULT IN 1992 THE 1992 RATE MARKED A DRAMATIC IMPROVEMENT FROM 1991 WHEN 97 OF HIGHYIELD BORROWERS MISSED INTEREST PAYMENTS MEANWHILE TREASURY NOTES AND BONDS ROSE MORE THAN 1/4 POINT IN SOME CASES AS INVESTORS NERVOUSLY AWAITED TODAY'S RELEASE OF THE JANUARY EMPLOYMENT REPORT THE BENCHMARK 30YEAR TREASURY BOND ROSE 1/4 POINT TO 105 8/32 TO YIELD 718 DOWN FROM 720 THE LAST TIME THE 30YEAR BOND CLOSED WITH A YIELD THAT LOW WAS IN AUGUST 1986 A SUDDEN WAVE OF BUYING SWEPT THROUGH THE MUNICIPAL BOND MARKET YESTERDAY BOOSTING THE PRICES OF ACTIVELY TRADED ISSUES ANYWHERE FROM 1/4 TO A FULL POINT TRADERS SAID THAT AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL ABOUT PRESIDENT CLINTON'S PLANS TO INCREASE THE TOP INCOME TAX RATES HELPED FUEL THE RALLY AND GENERAL MOTORS ACCEPTANCE CORP THE FINANCING ARM OF GENERAL MOTORS CORP BROUGHT A 29 BILLION ASSETBACKED DEAL TO THE MARKET YESTERDAY THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP UNDERWRITERS SAID IT MAY BE ONE OF THE LARGEST ASSETBACKED DEALS EVER THE JUNK BOND DEFAULT OUTLOOK WHICH APPEARS IN MOODY'S ANNUAL STUDY OF CORPORATE BOND AND GLOBAL DEBT DEFAULT RATES STARTLED SOME INVESTORS WHO EXPECT BOND DEFAULT RATES THIS YEAR TO CONTINUE TO IMPROVE THE STUDY ALSO CONTRASTED SHARPLY WITH A RECENT ANALYSIS OF CORPORATE BOND DEFAULT RATES BY STANDARD & POOR'S CORP ANOTHER MAJOR RATING AGENCY JEROME S FONS ECONOMIST AND SENIOR ANALYST AT MOODY'S AND THE AUTHOR OF THE STUDY CAUTIONED THAT THE FORECAST WAS VERY MUCH IN LINE WITH THE 46 AVERAGE SPECULATIVE DEFAULT RATE OVER THE LAST TWO DECADES I'M NOT PREDICTING A MAJOR WAVE OF NEW BOND DEFAULTS MR FONS SAID BUT BASED ON CURRENT ECONOMIC CONDITIONS WE AREN'T COMPLETELY OUT OF THE WOODS YET THE REPORT SAID THAT THE EXPECTED RISE IN JUNK BOND DEFAULTS WOULD REFLECT A MILD ECONOMIC RECOVERY AND A GREATER NUMBER OF NEW BORROWERS RATED SINGLEB A SINGLEB RATING IS GIVEN TO OFFERINGS THAT ARE HIGHLY SPECULATIVE BECAUSE THE ISSUER'S LONGTERM ABILITY TO MEET FUTURE INTEREST PAYMENTS IS QUESTIONABLE THE MOODY'S SURVEY SURPRISED SOME INVESTORS WHO SAID THEY WERE ANTICIPATING A DECLINE IN DEFAULTS THIS YEAR THE MOODY'S STUDY IS A LITTLE BIZARRE SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL BOND FUND INTEREST RATES ARE MOVING LOWER SO COMPANIES SHOULD CONTINUE TO TAKE OUT HIGHERCOST DEBT HE SAID BESIDES MANY COMPANIES IN SOCALLED CYCLICAL INDUSTRIES HAVE ALREADY PUT THE WORST BEHIND THEM AND SHOULD PICK UP IN AN IMPROVING ECONOMY SAID MR KURINSKY ADDING THAT HE HADN'T YET READ THE FULL REPORT THE MOODY'S REPORT CONTRASTS WITH A SIMILAR REPORT ISSUED BY S&P IN LATE JANUARY S&P SAID THAT JUNK BOND DEFAULTS WOULD CONTINUE TO MODERATE IN 1993 AS MOST OF THE MAJOR DEFAULTS OF THE 1980S ARE IN THE PAST BUT S&P CAUTIONED THAT DEFAULTS COULD BEGIN TO RISE AGAIN IN 1994 BECAUSE OF A DETERIORATION IN THE CREDIT QUALITY OF FIRSTTIME ISSUERS WHILE MOST OF THE NEW ISSUERS IN THE FIRST PART OF 1992 WERE RATED DOUBLEB THE CREDIT QUALITY OF FIRSTTIME ISSUERS DECLINED TOWARD THE SINGLEB CATEGORY BY THE YEAR END SAID DIANE VAZZA DIRECTOR OF HIGHYIELD RESEARCH AT S&P IF THE TREND CONTINUES DEFAULTS OF RATED CORPORATE DEBT MAY RISE IN SUBSEQUENT YEARS SHE SAID SEPARATELY COMPANIES FLOODED THE PRIMARY MARKET YESTERDAY CLEARLY ENCOURAGED BY THE BULLISH TONE OF THE TREASURY MARKET AHEAD OF TODAY'S KEY EMPLOYMENT DATA CORPORATE ISSUANCE COULD BE QUITE BRISK IN THE DAYS AHEAD SYNDICATE OFFICIALS SAID DUE TO THE TREASURY REFUNDING NEXT WEEK FEW COMPANIES WOULD WANT TO COMPETE WITH THE FEDERAL GOVERNMENT'S ENORMOUS BORROWING NEEDS THEY EXPLAINED NEARLY 2 BILLION OF CORPORATE DEBT WAS FLOATED YESTERDAY BORDEN INC PRICED 250 MILLION OF 30YEAR DEBENTURES THROUGH FIRST BOSTON CORP AND QUICKLY SOLD OUT THE ISSUE CAME CHEAPER THAN ORIGINALLY PLANNED INVESTORS SAID TREASURY BOND PRICES SEEMED LITTLE AFFECTED BY YESTERDAY'S INTEREST RATE CUTS BY THE GERMAN AND JAPANESE CENTRAL BANKS WITH THE MARKET MORE CONCERNED ABOUT TODAY'S RELEASE OF THE JANUARY EMPLOYMENT REPORT WHILE SUCH INTERNATIONAL RATE CUTS CAN MAKE DOLLARDENOMINATED SECURITIES MORE VALUABLE THE BENEFIT FOR DOLLARDENOMINATED SECURITIES OF SLIGHTLY LOWER RATES ABROAD IS OFTEN ONLY PSYCHOLOGICAL I FIND THAT THERE'S REALLY NOT A GOOD RELATIONSHIP BETWEEN GERMAN INTEREST RATES AND US RATES SAID ANDY BRENNER A GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC I DON'T THINK PEOPLE THINK THAT WAY IN A TRADE FOR MORE THAN 20 MINUTES IN PARTICULAR THE GERMAN RATE CUTS DIDN'T SIGNAL ANY CONCERTED EFFORTS AT LOWERING RATES ACROSS EUROPE SO THERE WAS ONLY SCATTERED BUYING BEFORE THE BUNDESBANK MOVE THE LABOR DEPARTMENT WILL RELEASE THE EMPLOYMENT REPORT AT 830 AM EST ECONOMISTS ON WALL STREET ESTIMATE THAT NONFARM PAYROLLS ROSE ABOUT 100000 LAST MONTH AND THAT THE UNEMPLOYMENT RATE REMAINED AT 73 EMPLOYERS ADDED 64000 TO NONFARM PAYROLLS IN DECEMBER MARKET WATCHERS SAY IT WOULD TAKE A PAYROLL GAIN OF NEARLY TWICE THE EXPECTED AMOUNT TO UNDERCUT THE POSITIVE MARKET SENTIMENT PARTLY BECAUSE THE EMPLOYMENT TREND IS EXPECTED TO SHAPE PRESIDENT CLINTON'S ECONOMIC PROPOSALS BOND DEALERS WERE RELUCTANT TO DO MUCH BEFORE THE EMPLOYMENT REPORT BUT FUND MANAGERS WHO HAVE AMPLE MONEY TO PUT TO WORK HAD A DIFFERENT IDEA THEY EMERGED AS BUYERS YESTERDAY PARTICULARLY OF INTERMEDIATETERM SECURITIES YOU HAVE A LOT OF PEOPLE TAKING MONEY OUT OF BANKS AND PUTTING IT INTO MUTUAL FUNDS SAID MR BRENNER OF NOMURA SECURITIES INVESTMENT MANAGERS ALSO HAVE INTEREST PAYMENTS TO PUT BACK TO WORK IN LATE WHENISSUED TRADING YESTERDAY THE 30YEAR BOND SCHEDULED TO BE AUCTIONED NEXT WEEK WAS YIELDING 715 DOWN FROM 718 ON WEDNESDAY THE 10YEAR NOTE WAS YIELDING 635 IN LATE WHENISSUED TRADING DOWN FROM 639 AND THE THREEYEAR NOTE WAS YIELDING 471 DOWN FROM 479 LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE MOST WIDELY WATCHED MEASURE OF MONEY SUPPLY M2 FELL 53 BILLION IN THE WEEK ENDED JAN 25 THE DECLINE LEFT M2 AT AN ANNUAL GROWTH RATE OF NEGATIVE 18 FROM ITS FOURTHQUARTER BASE THE FED'S CURRENT ANNUAL TARGET IS FOR 25 TO 65 GROWTH M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 MEANWHILE THE TREASURY SOLD 1433 BILLION OF 52WEEK BILLS HERE ARE THE RESULTS 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 THE BILLS ARE DATED FEBRUARY 11 AND MATURE FEBRUARY 10 1994 MUNICIPAL BOND PRICES JUMPED AS MUCH AS A FULL POINT YESTERDAY AS INVESTORS WHO WERE WORRIED ABOUT TAX INCREASES SCRAMBLED TO BUY MORE OF THE TAXEXEMPT SECURITIES STRENGTH IN THE TREASURY MARKET CONTRIBUTED TO THE RALLY SAID TRADERS BUT AN ARTICLE IN YESTERDAY'S EDITION OF THE WALL STREET JOURNAL HELPED CEMENT BULLISH SENTIMENT ABOUT TAXEXEMPT ISSUES THE ARTICLE SAID THAT SOME OF PRESIDENT CLINTON'S ADVISERS HAVE SUGGESTED INCREASING THE TOP FEDERAL INCOME TAX RATE FROM 31 TO MORE THAN THE 36 THAT CLINTON PROPOSED DURING HIS ELECTION CAMPAIGN ALTHOUGH TALK ABOUT HIGHER TAXES HAS BEEN PROPPING UP MUNICIPAL BOND PRICES FOR SOME TIME THE ARTICLE APPARENTLY HELPED SPUR MORE DEMAND YESTERDAY AMONG THE BIGGEST GAINERS WERE THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 625 SERIES B POWER SYSTEM REVENUE REFUNDING BONDS OF 2012 THEY CLOSED 7/8 POINT HIGHER AT 99 7/8 TO YIELD 624 DOWN FROM 632 ON WEDNESDAY WITH DEMAND SOLIDLY ENTRENCHED DUE TO CONTINUING REDEMPTIONS OF OLDER HIGHERYIELDING BONDS MUNICIPAL BOND PRICES HAVE MORE ROOM TO RISE IN THE NEAR FUTURE SAID MICHAEL SHOMOSH A MUNICIPAL BOND STRATEGIST AT COWEN & CO A LARGE ASSETBACKED DEAL FROM GENERAL MOTORS ACCEPTANCE CORP DOMINATED THIS SECTOR'S ATTENTION YESTERDAY IN SECONDARY TRADING 75 ISSUES FROM ALL THREE AGENCIES ROSE ABOUT 1/4 POINT GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ROSE 1/4 POINT TO 102 6/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ROSE 7/32 TO 102 1/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ROSE 7/32 TO 101 26/32 THE GMAC OFFERING OF 26 BILLION WHICH WAS BROUGHT TO MARKET BY UNDERWRITERS LED BY FIRST BOSTON CORP EXCEEDED THE TOTAL VOLUME OF AUTOLOAN ISSUANCE FOR ALL OF JANUARY THE SECURITIES WHICH ARE BACKED BY AUTOMOBILE LOANS WERE PRICED IN EIGHT PARTS LARGE CHUNKS OF THE OFFERING THE LARGEST ASSETBACKED ISSUE OFFERED SINCE 1989 WERE BOUGHT BY MONEY MARKET FUNDS THAT HAVE NEVER BOUGHT ASSETBACKED SECURITIES BEFORE ACCORDING TO JOSEPH DONOVAN MANAGING DIRECTOR AT FIRST BOSTON THAT'S BECAUSE FOUR CLASSES OF THE DEAL WERE STRUCTURED TO MATURE WITHIN A YEAR A STRICT REQUIREMENT OF MANY FUNDS THE MONEY MARKET CLASSES AS WELL AS THE OTHER FOUR SENIOR CLASSES IN THE DEAL SOLD AT VERY NARROW YIELD SPREADS OVER TREASURYS EVIDENCE THAT DEMAND FOR THE SECURITIES WAS STRONG BUT SOME MONEY MARKET INVESTORS WEREN'T IMPRESSED TOM NELSON A VICE PRESIDENT WITH CHASE MANHATTAN BANK CORP THOUGHT THE YIELDS TOO SLIM TO BUY PARTICULARLY BECAUSE THE SECURITIES CAME FROM A TROUBLED CREDIT SUCH AS GMAC THE HUGE DEAL CAME ONE DAY AFTER S&P DOWNGRADED GMAC'S COMMERCIAL PAPER RATING TO SINGLEA2 FROM SINGLEA1PLUS GMAC HAS LONG BEEN EXPECTED TO CONTINUE TAKING ADVANTAGE OF ITS ACTIVE ASSETBACKED SECURITIES PROGRAM TO RAISE SHORTTERM FUNDS BUT UNDERWRITERS SAID YESTERDAY'S DEAL WAS NOT MARKETED AS A REPLACEMENT FOR GMAC COMMERCIAL PAPER DESPITE THE NEW ISSUE'S TOPTIER RATINGS INTERESTRATE CUTS BY THE CENTRAL BANKS OF JAPAN AND GERMANY HAD A MUTED EFFECT ON THE INTERNATIONAL BOND MARKETS AFTER RALLYING FOR WEEKS ON THE PROSPECT OF A DISCOUNTRATE CUT THE JAPANESE GOVERNMENT BOND PRICE DROPPED YESTERDAY WHEN THE EASING FINALLY CAME AFTER THE BANK OF JAPAN CUT ITS DISCOUNT RATE 075 PERCENTAGE POINT TO 25 THE BENCHMARK 10YEAR NOTE DROPPED 011 TO 10747 TO YIELD 4355 UP FROM 434 ON WEDNESDAY THE DISCOUNT RATE IS THE RATE CHARGED BY THE CENTRAL BANK FOR BANK LOANS GERMAN BOND PRICES DROPPED AT THE END OF HECTIC TRADING AFTER THE BUNDESBANK CUT RATES YESTERDAY AS THE MARKET EXPRESSED ITS DISAPPOINTMENT WITH WHAT IT CONSIDERED A RELATIVELY SMALL CUT THE GERMAN CENTRAL BANK CUT ITS DISCOUNT RATE TO 8 FROM 825 AND THE LOMBARD RATE TO 9 FROM 95 THE LOMBARD RATE IS WHAT THE CENTRAL BANK CHARGES FOR SUPPLEMENTAL BORROWINGS THAT USE SECURITIES AS COLLATERAL THE GERMAN DISCOUNT RATE IS SIMILAR TO THE US DISCOUNT RATE WHICH IS CHARGED FOR LOANS TO BANKS AND OTHER DEPOSITORY INSTITUTIONS GERMAN GOVERNMENT BONDS MATURING IN 2002 DROPPED 018 POINT TO 10065 TO YIELD 703 UP 003 PERCENTAGE POINT FROM WEDNESDAY MEANWHILE FRENCH BONDS ENDED MIXED SWISS BONDS JUMPED AS MUCH AS A FULL POINT AND BRITISH GOVERNMENT BONDS OR GILTS RALLIED SHORTLY BEFORE THE ANNOUNCEMENT BUT FELL ABOUT 1/4 POINT BY THE END OF TRADING CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9302050031 930205 BIG INVESTORS EVEN MONEY MANAGERS JOIN ACTIVISTS' RANKS FOR BETTER BOTTOM LINES BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHILE BANKS AND MUTUAL FUNDS ARE AMONG THE LARGEST INVESTORS IN US CORPORATIONS THEY AREN'T KNOWN FOR MAKING A RUCKUS BIG PUBLIC PENSION FUNDS SUCH AS CALIFORNIA'S HUGE PUBLICEMPLOYEES RETIREMENT FUND OR CALPERS AS IT IS KNOWN HAVE GRABBED HEADLINES AS A RESULT OF THEIR PUSH FOR REFORMS AT POORLY PERFORMING COMPANIES BUT MOST BANKS MUTUAL FUNDS AND OTHER BIG CORPORATEASSET MANAGERS HAVE STAYED IN THE BACKGROUND CONTENT TO WORK QUIETLY BEHIND THE SCENES NOW A GROWING NUMBER OF BIG INSTITUTIONAL INVESTORS ARE FLEXING THEIR MUSCLES COMPANIES SUCH AS JP MORGAN ALLIANCE CAPITAL MANAGEMENT FIDELITY INVESTMENTS AND WELLINGTON MANAGEMENT CO WHICH MANAGES SEVERAL VANGUARD GROUP MUTUAL FUNDS ARE SHOWING A NEW WILLINGNESS TO RATTLE THE CAGE OF MANAGEMENT TO PRESS THEIR DEMANDS FOR IMPROVED CORPORATE PERFORMANCE SHAREHOLDER ACTIVISM IS MOVING OUT OF THE CORE GROUP OF PUBLIC PENSION FUNDS TO INCLUDE MONEY MANAGERS SAYS JOHN POUND A HARVARD PROFESSOR WHO ADVISES CORPORATIONS AND PENSION FUNDS ON CORPORATEGOVERNANCE ISSUES THE LATEST AND CLEAREST EXAMPLE OF THE POWER OF THIS NEW ASSERTIVENESS CAME JUST LAST WEEKEND WHEN JAMES D ROBINSON III ANNOUNCED HE WOULD STEP DOWN AS CHAIRMAN OF AMERICAN EXPRESS CO THE MOVE FOLLOWED STRENUOUS COMPLAINTS FROM A GROUP OF THE COMPANY'S LARGEST SHAREHOLDERS WHO MET WITH HARVEY GOLUB NEWLY APPOINTED CHIEF EXECUTIVE OFFICER TO VOICE THEIR OBJECTIONS TO THE BOARD'S DECISION TO RETAIN MR ROBINSON AS CHAIRMAN THE STOCKHOLDERS ALSO TOLD MR GOLUB THEY WANTED TO HAVE A REAL SAY IN THE SELECTION OF REPLACEMENTS FOR THREE OF AMERICAN EXPRESS'S BOARD MEMBERS IN THE PAST PEOPLE VOTED WITH THEIR FEET SAYS STAR MUTUAL FUND MANAGER MARIO GABELLI WHO WAS REPRESENTED AT THE MEETING NOW THAT'S CHANGING THE INSTITUTIONAL INVESTORS' NEW OPENNESS SEEMS LIKELY TO GIVE A MAJOR PUSH TO THE SHAREHOLDERRIGHTS MOVEMENT IN THE PAST SHAREHOLDER ACTIVISM WASN'T ALWAYS TAKEN SERIOUSLY BY MANY CORPORATE CHIEFTAINS BECAUSE THEY SAW IT AS POLITICALLY MOTIVATED BUT WITH SUCH VENERABLE INSTITUTIONS AS JP MORGAN PLAYING A ROLE SHAREHOLDER ACTIVISM COULD GAIN CLOUT AND CREDIBILITY AS A RESULT MORE COMPANIES ARE LIKELY TO BE ADDED TO THE GROWING LIST INCLUDING INTERNATIONAL BUSINESS MACHINES CORP GENERAL MOTORS CORP WESTINGHOUSE ELECTRIC CORP AND SEARS ROEBUCK & CO THAT HAVE UNDERGONE SHAKEUPS BECAUSE OF SHAREHOLDER PRESSURE TWO YEARS AGO YOU DIDN'T SEE PRIVATE PENSION FUND MANAGERS INVOLVED AS WITH AMERICAN EXPRESS NOW YOU DO AND EACH TIME THIS HAPPENS IT GETS EASIER TO MAKE IT HAPPEN AGAIN SAYS SARAH TESLIK HEAD OF THE COUNCIL OF INSTITUTIONAL INVESTORS WHICH REPRESENTS PUBLIC PENSION FUNDS EVEN SOME CORPORATE RETIREMENT FUNDS ARE SHOWING SIGNS OF INTEREST IN THE SHAREHOLDERRIGHTS MOVEMENT INDEED GENERAL MOTORS RECENTLY JOINED MS TESLIK'S GROUP TRADITIONALLY THE ENCLAVE OF PUBLIC PENSION FUNDS OTHER CORPORATE MEMBERS ALSO HAVE SIGNED UP IN RECENT MONTHS MONEY MANAGERS CONTINUE TO FACE PLENTY OF ROADBLOCKS TO BECOMING ACTIVE IN A MORE VISIBLE WAY FOR ONE THING MOST DON'T SEE IT AS PART OF THEIR JOB TO LOBBY THE COMPANIES THEY INVEST IN YOU DON'T WIN BUSINESS BY TELLING CLIENTS THAT YOU RAISE HOLY HELL SAYS ONE SUCH INVESTOR OTHER MONEY MANAGERS COMPLAIN THAT IT IS TOO EXPENSIVE AND CUMBERSOME FOR INVESTORS TO COMMUNICATE DESPITE A RECENT RULE CHANGE BY THE SECURITIES AND EXCHANGE COMMISSION DESIGNED TO MAKE IT EASIER FOR INVESTORS TO TALK WE'RE IN A BOXING MATCH AND I'VE GOT BOTH HANDS TIED BEHIND MY BACK SAYS FREDERICK MORAN AN INDEPENDENT MONEY MANAGER WHO OVERSEES A 500 MILLION STOCK PORTFOLIO ASSERTIVENESS ON THE PART OF INSTITUTIONAL INVESTORS ISN'T AN ENTIRELY NEW CONCEPT SOME INSTITUTIONS HAVE ALWAYS BEEN MORE WILLING THAN MOST TO PRESS THEIR SHAREHOLDER RIGHTS BUT EVEN FIRMS THAT WERE WILLING TO TAKE A PUBLIC STANCE IN THE PAST ARE BECOMING MORE ACTIVE FOR INSTANCE FIDELITY INVESTMENTS IS LOOKING MORE CLOSELY AT THE STOCKRELATED COMPENSATION PLANS OF THE COMPANIES IN WHICH IT INVESTS SAYS ROBERT POZEN GENERAL COUNSEL FOR THE GIANT BOSTONBASED MUTUAL FUND COMPANY AT ANNUAL MEETINGS THIS SPRING FIDELITY PLANS TO VOTE AGAINST SLATES OF DIRECTORS RECOMMENDED BY MANAGEMENT IF IT BELIEVES MANAGEMENT'S STOCKRELATED COMPENSATION IS UNFAIR TO OTHER SHAREHOLDERS OR DOESN'T PROVIDE MANAGEMENT WITH SUFFICIENT INCENTIVE TO BOOST FINANCIAL PERFORMANCE WHILE FIDELITY HAS LOOKED AT STOCKRELATED COMPENSATION IN THE PAST AS A CRITERIA FOR WHETHER IT WOULD SUPPORT MANAGEMENT WITH ITS PROXY VOTE THOSE CRITERIA HAVE BEEN TIGHTENED MR POZEN SAYS WE'VE BECOME MORE FOCUSED ON COMPENSATION AS THE ISSUE HAS BECOME MORE IMPORTANT HE ADDS FOR EXAMPLE FIDELITY WILL VOTE AGAINST COMPANIES THAT HAVE REPRICED STOCK OPTION PLANS RECENTLY IN ORDER TO MAKE THE EXERCISE PRICE IN THE CURRENT RANGE OF THE COMPANY'S STOCK IT ALSO PLANS TO VOTE AGAINST MANAGEMENT AT COMPANIES OFFERING EXECUTIVES RESTRICTED STOCK PROGRAMS WITH A HOLDING PERIOD FIDELITY BELIEVES ISN'T LONG ENOUGH TO PROVIDE MANAGEMENT WITH INCENTIVE TO IMPROVE THE COMPANY'S FINANCIAL PERFORMANCE MR POZEN SAYS FIDELITY INVESTMENTS SAID THAT AT ANNUAL MEETINGS THIS SPRING IT PLANS TO VOTE AGAINST SLATES OF DIRECTORS RECOMMENDED BY MANAGEMENT IF A COMPANY HAS LOWERED THE EXERCISE PRICE ON EXECUTIVE STOCK OPTIONS TO PUT IT WITHIN THE CURRENT RANGE OF THE COMPANY'S STOCK PRICE IN OTHER CASES WHERE IT DISAGREES WITH STOCKRELATED COMPENSATION PLANS FIDELITY SAID IT WILL VOTE AGAINST THE PLAN BUT NOT THE DIRECTORS AS WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY 9302050030 930205 BRITISH PLAN TO SPUR COMPETITION IN PUBS BECOMES BITTER DRAFT ORDER THAT BREWERIES SELL OFF SOME TAVERNS HAS PUSHED DRINK PRICES UP NOT DOWN BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL DURHAM ENGLAND THE MONOPOLIES AND MERGERS COMMISSION ISN'T THE TOAST OF MANY TAVERNS THESE DAYS UNDER THE COMMISSION'S BEER ORDERS AN ANTITRUST RULING ISSUED IN 1989 BREWERIES OWNING MORE THAN 2000 PUBS WERE FORCED TO SELL HALF THEIR EXCESS PROPERTIES BY THIS PAST NOV 1 THE DECISION WAS AIMED AT BREAKING THE DOMINANCE BY SIX NATIONAL BREWERIES WHITBREAD PLC BASS PLC ALLIEDLYONS PLC GRAND METROPOLITAN PLC SCOTTISH & NEWCASTLE PLC AND COURAGE A UNIT OF AUSTRALIA'S FOSTER'S BREWING GROUP LTD SOME 11000 PUBS WERE SOLD NATIONWIDE UNDER THE ORDER WITH THE GOVERNMENT HOPING THAT WOULD SPUR COMPETITION AND OFFER IMBIBERS A WIDER CHOICE OF BREWS THE ACTUAL RESULT THE EXACT OPPOSITE OF WHAT WAS INTENDED SAYS A WHITBREAD SPOKESWOMAN IT'S MEANT FEWER CHOICES LESS COMPETITION AND HIGHER PRICES A PINT OF BITTER THAT COST ON AVERAGE 94 PENCE 143 WHEN THE BEER ORDERS TOOK EFFECT NOW COSTS 130 THAT PRICE RISE HAS OUTSTRIPPED INFLATION BY 17 ACCORDING TO THE CAMPAIGN FOR REAL ALE A LOBBYING GROUP DEVOTED TO BETTER BEER AT DECENT PRICES LAST MONTH BRITAIN'S TRADE AND INDUSTRY DEPARTMENT REVERSED PLANS TO REVIEW THE EFFECT OF THE BEER ORDERS AT THE END OF 1993 THE FULL EFFECT OF THE ORDERS WILL TAKE MORE TIME TO BE FELT THE GOVERNMENT SAID SO BOTH BREWERIES AND PUB OWNERS NEED A PERIOD OF STABILITY STEVEN COX OF THE CAMPAIGN FOR REAL ALE CONDEMNED THE REVIEW'S SHELVING AS AN ABDICATION OF RESPONSIBILITY THE GOVERNMENT HAS A MORAL RESPONSIBILITY TO CLEAN UP THE MESS IT'S MADE RATHER THAN JUST WASH ITS HANDS SO WHAT WENT WRONG WITH THE BEER ORDERS THE FREE TRADEORIENTED GOVERNMENT OF THENPRIME MINISTER MARGARET THATCHER INDUSTRY ANALYSTS SAY BADLY MISCALCULATED SEVERAL CRUCIAL FACTORS AN ECONOMIC CLIMATE THAT THREATENED THE VIABILITY OF HEAVILY MORTGAGED INDEPENDENT PUB OWNERS DECLINING BEER CONSUMPTION IN AN AGING POPULATION AND THE BIG BREWERIES' CONTINUED CLOUT OVER THEIR DIVESTED PROPERTIES MOST OF ALL THE GOVERNMENT FAILED TO APPRECIATE THAT DRINKERS ARE LOATH TO SWITCH TO NEW BEERS TO WIT THE TOP SELLERS AT THE TRAVELLER'S REST PUB HERE IN DURHAM IN THE NORTHEAST OF ENGLAND ARE THEAKSTON XB AND THEAKSTON BEST BITTER WHILE OTHER CHOICES INCLUDE MCEWAN'S BEST SCOTCH AND MCEWAN'S LAGER ALL ARE PRODUCTS OF THE SCOTTISH & NEWCASTLE BREWERY WHICH OWNED THE PUB UNTIL 1990 ALL MY PUBS STILL SELL SCOTTISH & NEWCASTLE PRODUCTS SAYS MATTHEW ROSEBERRY WHO BOUGHT THE TRAVELLER'S REST AND 21 OTHER PUBS FROM THE BREWERY BASED IN EDINBURGH I WOULD BE TAKING ONE HELL OF A GAMBLE TO BRING IN OTHER PRODUCTS PEOPLE IN THE NORTHEAST ARE USED TO SCOTTISH & NEWCASTLE BEER THE BIG SIX BREWERIES HAD ABOUT 77 OF THE MARKET IN 1989 DUE TO MERGER DEALS INVOLVING COURAGE AND GRAND MET AND BETWEEN ALLIED AND CARLSBERG FIVE COMPANIES NOW HAVE SOME 84 OF THE MARKETBASS AT 21 GRAND METCOURAGE AT 20 ALLIEDCARLSBERG AT 17 WHITBREAD AT 14 AND SCOTTISH & NEWCASTLE AT 12 ACCORDING TO A WHITBREAD EXECUTIVE SOME OF THE LARGER REGIONAL BREWERIES SUCH AS GREENALLS IN THE LIVERPOOL AREA AND BODDINGTON IN MANCHESTER HAVE MOVED AWAY FROM THE BREWING BUSINESS TO CONCENTRATE ON HOTEL AND PUB OPERATIONS GREENALLS' BEER IS NOW BREWED BY ALLIED WHILE WHITBREAD BOUGHT OUT BODDINGTON'S BREWERY BUSINESS PRICES FOR PUBS HAVE DECLINED AN ESTIMATED 40 NATIONWIDE SAYS GEOFF WHEATLEY MANAGING DIRECTOR OF PINDERS AN APPRAISING FIRM NORTH OF LONDON LED BY HUGE PRICE DECLINES IN THE SOUTH OF ENGLAND WHERE MANY PROPERTIES GREW OVERVALUED DURING THE BOOM YEARS OF THE LATE 1980S INDUSTRY ANALYSTS SAY A KEY FACTOR FOR THE BEER ORDERS' LACK OF SUCCESS IS THEIR NATIONAL APPROACH TO A BUSINESS THAT HAS WELLDEFINED REGIONAL CHARACTERISTICS BASS HAS THE WEST MIDLANDS HOOKED WHITBREAD IS A STAPLE IN THE SOUTHEAST AND YORKSHIRE HAS NEVER BEEN LACKING IN COURAGE BY CHOOSING A RAW NUMBER OF PUBS NATIONWIDE RATHER THAN TARGETING LICENSING DISTRICTS OR REGIONS THE BEER ORDERS ALMOST ENSURED THAT BREWERIES WOULD UNLOAD THEIR LEASTATTRACTIVE PROPERTIES OF THE 22 PUBS MR ROSEBERRY BOUGHT TWO HAVE ALREADY BEEN SHUT DOWN AND THREE SOLD TO OTHER BUYERS HE SAYS HIS PUB PACKAGE INCLUDED A MIX OF GOOD PROPERTIES AND SOME ABSOLUTELY WORTHLESS RUBBISH ONE ELEMENT OF THE BEER ORDERS THE SOCALLED GUEST ALE PROVISION HAS RECEIVED BETTER REVIEWS THAN THE UNTYING ORDER THE PROVISION WHICH IS INTENDED TO HELP SMALLER BREWERIES GAIN A FOOTHOLD IN NEW REGIONS REQUIRES THE BIG BREWERIES TO ALLOW THEIR TIED TENANTS TO BUY SOFT DRINKS CIDER WINES SPIRITS AND AT LEAST ONE BRAND OF CASKCONDITIONED ALE FROM THE SUPPLIER OF THEIR CHOICE THIS PART OF THE ORDERS HAS BEEN REASONABLY SUCCESSFUL SAYS MR COX THE CONSUMER ALE ADVOCATE ON THE OTHER HAND HE SAYS PUB OWNERS HAVE REPORTED ALL SORTS OF SHENANIGANS BY BREWERIES INTENT TO KEEP GUEST ALES OUT INCLUDING RESTRICTING THE DISPLAY OF THE GUEST ALE'S TAPS SOME OF THE TRICKS THE BIG BREWERIES HAVE COME UP WITH TO KEEP TENANTS FROM BRINGING IN GUEST ALES ARE WORTHY OF CHICAGO IN THE 1920S SAID ONE PUB OWNER WHO REQUESTED ANONYMITY THEY WON'T ADMIT TO IT BUT THEY DO THINGS LIKE CHARGE THE TENANT EXTRA RENT TO HAVE ANOTHER BREWERY'S CASK IN THE CELLAR 9302050029 930205 MARKETING BRIEF READER'S DIGEST ASSOCIATION INC FIRM'S NET INCOME ROSE 14 FOR FISCAL SECOND QUARTER READER'S DIGEST ASSOCIATION INC SAID THAT FISCAL SECONDQUARTER NET INCOME ROSE 14 BOOSTED BY STRONGER ADVERTISING FOR ITS FLAGSHIP READER'S DIGEST MAGAZINE AND FOR ITS SPECIAL INTEREST MAGAZINES THE PUBLISHING AND DIRECT MARKETING COMPANY IN PLEASANTVILLE NY SAID THAT NET INCOME FOR THE QUARTER ENDED DEC 31 CLIMBED TO 714 MILLION OR 60 CENTS A SHARE FROM 628 MILLION OR 52 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 13 TO 8067 MILLION FROM 7124 MILLION A YEAR EARLIER AS SALES ROSE IN EACH OF THE COMPANY'S THREE MAJOR BUSINESS SEGMENTS CHAIRMAN AND CHIEF EXECUTIVE GEORGE V GRUNE SAID INTERNATIONAL REVENUE JUMPED 17 BUT US REVENUE ROSE JUST 9 AS SALES FROM US BOOKS AND HOME ENTERTAINMENT PRODUCTS WERE LOWER THAN EXPECTED THE COMPANY SAID FOR THE FIRST SIX MONTHS NET INCOME JUMPED 19 TO 140 MILLION OR 117 A SHARE FROM 1175 MILLION OR 98 CENTS A SHARE IN THE PERIOD A YEAR EARLIER REVENUE CLIMBED 15 TO 15 BILLION FROM 13 BILLION A YEAR EARLIER AS INTERNATIONAL REVENUE ROSE 24 AND US INCREASED 5 EXCLUDING CURRENCY GAINS REVENUE FOR THE PERIOD WOULD HAVE INCREASED ABOUT 11 AND INTERNATIONAL REVENUE WOULD HAVE RISEN ABOUT 17 READER'S DIGEST SAID 9302050028 930205 ELUSIVE THREAT ELECTRIC UTILITIES BRACE FOR CANCER LAWSUITS THOUGH RISK IS UNCLEAR COMPANIES SPEND ON CUTTING ELECTROMAGNETIC FIELDS AS LAWYERS SMELL BLOOD MICHAEL WITHEY'S DATA BANK BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE IF THE ELECTRIC UTILITY INDUSTRY HAD GONE LOOKING FOR TROUBLE IT COULDN'T HAVE PICKED A THORNIER ISSUE THAN ELECTROMAGNETIC FIELDS NOR A FIERCER OPPONENT THAN MICHAEL WITHEY MR WITHEY AN INTENSE BUSHYHAIRED SEATTLE ATTORNEY HAS MADE A CAREER OF REPRESENTING SUCH UNDERDOGS AS FARM AND CANNERY WORKERS WHISTLEBLOWERS AND ANTIWAR ATIVISTS HE CAUGHT THE UTILITIES' ATTENTION NEARLY THREE YEARS AGO WHEN HE PRESSURED BOEING CO INTO PAYING MORE THAN 500000 TO SETTLE A SUIT FILED BY A FORMER EMPLOYEE WHO CLAIMED THAT HIS LEUKEMIA WAS CAUSED BY EXPOSURE TO ELECTROMAGNETIC RADIATION THE LAWSUIT WAS ONE OF THE FIRST TO ATTEMPT TO LINK CANCER TO MAGNETIC FIELDS PRODUCED BY ELECTRIC CURRENT KNOWN AS EMF SINCE THEN MR WITHEY HAS BECOME THE LEADER OF A NATIONWIDE GROUP OF LAW FIRMS EAGER TO TURN EMF INTO A LEGAL BATTLEGROUND IF THEY ARE SUCCESSFUL SOME INDUSTRY EXPERTS PREDICT UTILITIES COULD END UP PAYING OUT BILLIONS IN EMFBASED CLAIMS PUBLICLY UTILITY OFFICIALS HAVE BRUSHED OFF EMF AS A THREAT LEONARD SAGAN SENIOR MEDICAL SCIENTIST AT THE ELECTRIC POWER RESEARCH INSTITUTE IN PALO ALTO CALIF THE INDUSTRY'S RESEARCH ARM CALLS EMF CONCERNS PREMATURE SOME UTILITY OFFICIALS SAY MR WITHEY AND HIS COLLEAGUES ARE ENGAGED IN A CANCER SCARE TO DRUM UP BUSINESS I THINK IT IS STILL FAIR AND ACCURATE TO SAY THERE'S NO BASIS FOR CONCLUDING ON PRESENT SCIENCE THAT EMF CAUSES ADVERSE HEALTH EFFECTS SAYS TOM WATSON A WASHINGTON DC ATTORNEY WHOSE FIRM HAS REPRESENTED ABOUT 140 UTILITIES IN EMFRELATED CASES BUT PRIVATELY EMF HAS SENT A JOLT THROUGH THE NATION'S ELECTRIC UTILITIES A SURVEY BY THE PUBLIC UTILITY COMMISSION OF TEXAS LAST YEAR FOUND 201 CHALLENGES TO UTILITY PROJECTS AROUND THE US IN WHICH EMF WAS AN ISSUE AT LEAST THREE SUITS HAVE BEEN FILED IN FEDERAL COURTS CLAIMING THAT CANCERS WERE CAUSED BY EXPOSURE TO UTILITY LINES LAST NOVEMBER RESEARCHERS FROM SWEDEN'S PRESTIGIOUS KAROLINSKA INSTITUTE REPORTED FINDING NEARLY FOURFOLD HIGHER LEUKEMIA RATES AMONG SWEDISH CHILDREN LIVING NEAR POWER LINES IN THE MUCH LARGER US POPULATION OF CHILDREN THAT WOULD TRANSLATE INTO MORE THAN 500 CASES OF CHILD LEUKEMIA A YEAR MINDFUL OF PREVIOUS MASSTORT ASSAULTS SUCH AS THOSE LAUNCHED AGAINST ASBESTOS MANUFACTURERS NEARLY TWO DECADES AGO UTILITIES ARE FLOCKING TO LAWYERS LIKE MR WATSON FOR ADVICE ABOUT EMF AND THEY ARE QUIETLY POURING BILLIONS OF DOLLARS INTO EFFORTS TO CUT EMF EXPOSURE FROM THEIR POWER LINES WE TEND TO BE FRIGHTENED BY CANCER AND RADIATION AND CHILDREN SAYS CARLOS ALVAREZ A TALLAHASSEE FLA ATTORNEY WHO HAS REPRESENTED FLORIDA UTILITIES IN EMF CASES YOU TIE THOSE EMOTIONAL WORDS TOGETHER AND IT WILL SCARE THE DAYLIGHTS OUT OF YOU WHAT IS NOTABLE ABOUT THE EMF DISPUTE IS THAT SO FAR NO SCIENTIST HAS CONCLUSIVELY TIED EMF TO CANCER SEVERAL POPULATION STUDIES BESIDES KAROLINSKA'S INCLUDING ONE FUNDED BY THE INDUSTRY RESEARCH ARM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA HAVE RECORDED INCREASED LEUKEMIA IN CHILDREN LIVING NEAR POWER LINES THERE HAVE BEEN NUMEROUS SCIENTIFIC REPORTS OF ELEVATED LEVELS OF LEUKEMIA IN PEOPLE WHO ARE EXPOSED TO HIGH EMF LEVELS ON THE JOB SUCH AS POWERLINE REPAIRMEN AND WORKERS IN ALUMINUM SMELTERS RESEARCHERS HERE IN WASHINGTON STATE ARE ALSO LOOKING INTO WHETHER EMF EXPOSURE MAY BE LINKED IN SOME WAY TO BREAST CANCER MOST RECENTLY QUESTIONS HAVE BEEN RAISED ABOUT WHETHER EMF FROM CELLULAR TELEPHONES COULD BE RELATED TO BRAIN TUMORS RESEARCHERS GENERALLY DISCOUNT THAT UNTESTED NOTION SINCE CELLULAR PHONES EMIT VERY LOW EMF LEVELS AND EXPOSURE IS INTERMITTENT MOST RESEARCHERS SAY IT COULD BE A DECADE OR MORE BEFORE THE IDEA OF A LINK BETWEEN EMF AND CANCER IS EITHER PROVED OR DISCREDITED SOME DOUBT THAT A CONNECTION WILL BE FOUND ROBERT ADAIR A YALE PHYSICIST AND AN OUTSPOKEN CRITIC OF EMF RESEARCH TO DATE CALLS THE UTILITIES' REACTION ELECTROPHOBIA HE SAYS THE FIELDS ARE FAR TOO WEAK TO CAUSE DAMAGE THAT IT WOULD TAKE EMF LEVELS 150 TIMES HIGHER THAN THOSE MEASURED BY THE SWEDISH RESEARCHERS TO POSE A HAZARD MY STRONGLY HELD VIEW DR ADAIR SAYS IS THAT THIS IS AN ASTONISHING WASTE OF MONEY UTILITIES HOWEVER MAY NOT HAVE A CHOICE IN THE EMF DISPUTE THE LAWYERS SEEM TO BE OUTRUNNING THE SCIENTISTS ALL IT'S GOING TO TAKE IS ONE OR TWO GOOD HITS AND THE SHARKS WILL START CIRCLING SAYS TOM WARD A BALTIMORE ATTORNEY WHO IS SUING NORTHEAST UTILITIES CO AND ITS CONNECTICUT LIGHT & POWER CO UNIT OVER AN ALLEGED EMF CANCER MR WATSON THE LAWYER WHO DEFENDS POWER COMPANIES SAYS HIS EMF WORK FOR UTILITIES HAS TRIPLED IN FIVE YEARS HE SAYS HE HASN'T LOST A CASE YET THE CASELOAD COULD GROW STILL MORE HE SAYS AS THE FIRST ROUND OF EMF CASES MAKES ITS WAY THROUGH THE COURTS SHOULD UTILITIES START LOSING HE NOTES YOU'LL SEE A VERY SUBSTANTIAL INCREASE IN LITIGATION AND THAT COULD BE AN UNDERSTATEMENT THAT POSSIBILITY MAKES MANY UTILITY EXECUTIVES NERVOUS THIS IS A DOUBLEEDGED SWORD SAYS MICHAEL MAIN EMF RISK MANAGER FOR PUGET SOUND POWER & LIGHT CO MR MAIN CONCEDES THAT PUGET POWER BASED IN BELLEVUE WASH WOULD BE LEGALLY AND ETHICALLY REMISS IF IT IGNORED SCIENTIFIC EVIDENCE OF AN EMF HAZARD BUT IF YOU SPEND A LOT OF MONEY AND THERE'S NO PROBLEM HE SAYS THE SHAREHOLDERS TAKE IT IN THE NECK AND YOU HAVE THE UTILITY COMMISSION TO ANSWER TO BY SOME ESTIMATES UTILITIES ARE NOW SPENDING MORE THAN 1 BILLION A YEAR ON EMF UP FROM PRACTICALLY NOTHING JUST FIVE YEARS AGO HAWAIIAN ELECTRIC INDUSTRIES INC FOR EXAMPLE LAID OUT NEARLY 5 MILLION TO REROUTE AND RECONFIGURE POWER LINES AFTER THE ISSUE AROSE WE WANT TO AVOID LAWSUITS SAYS FRANCIS HIRAKAMI THE UTILITY'S SENIOR ELECTRICAL ENGINEER PUGET POWER FIELDS AS MANY AS 10 CALLS A WEEK FROM CUSTOMERS ANXIOUS ABOUT EMF VOTERS IN WHATCOM COUNTY WASH REJECTED THE COMPANY'S PROPOSED 230000VOLT TRANSMISSION LINE TWO YEARS AGO AFTER EMF BECAME AN ISSUE FOR GOOD MEASURE THEY RESTRICTED FUTURE POWERLINE CONSTRUCTION TO EXISTING INDUSTRIAL CORRIDORS A MOVE THAT PUGET POWER SAYS COULD ADD 10 MILLION TO THE COST OF BUILDING A NEW LINE OTHER UTILITIES ARE BURYING LINES WIDENING RIGHTSOFWAY AND EVEN OFFERING TO BUY UP HOMES ALONG POWERLINE ROUTES TO EASE PUBLIC ANXIETY SO FAR MOST EMF SPENDING BY UTILITIES HAS GONE TOWARD REROUTING OR RECONFIGURING WIRING ON NEW LINES SOME ARE ALSO PRACTICING PRUDENT AVOIDANCE A CATCHALL INDUSTRY TERM FOR INEXPENSIVE ALTERNATIVES THAT CAN RANGE FROM PROVIDING HOME MEASUREMENTS OF EMF TO COUNSELING ON HOW TO ARRANGE APPLIANCES TO LOWER EXPOSURES THERE ARE LOTS OF THINGS YOU CAN DO BEFORE YOU START MOVING POWER LINES AROUND SAYS GILBERT OMENN WHO HEADS THE UNIVERSITY OF WASHINGTON'S SCHOOL OF PUBLIC HEALTH AND SERVES AS CHAIRMAN OF THE INDUSTRY RESEARCH ARM'S EMF ADVISORY COUNSEL SUCH MEASURES ARE RELATIVELY CHEAP COMPARED WITH THE EXPENSE OF CURBING EMF EXPOSURE FOR THE ENTIRE 642000MILE WEB OF OVERHEAD TRANSMISSION LINES CRISSCROSSING THE COUNTRY TRANSMISSION LINES CARRY POWER CROSSCOUNTRY AT HIGH VOLTAGE GENERATING THE MOST INTENSE SUSTAINED EMF LEVELS AND CONTROVERSY BURYING EXISTING POWER LINES EXPERTS SAY COULD COST UP TO 20 TIMES MORE THAN HANGING THEM FROM PYLONS THE EXPENSE OF MAKING SIGNIFICANT CUTS IN EMF EXPOSURE FOR THE NATION'S TRANSMISSION GRID COULD END UP DWARFING THE ASBESTOS PAYOUTS FOR INSTANCE WHEN OFFICIALS AT PENNSYLVANIA POWER & LIGHT CO STUDIED THE COST OF CURBING EMF FROM THE UTILITY'S 3700MILES SYSTEM OF OVERHEAD LINES RECENTLY THEY CAME UP WITH A 600 MILLION PRICE TAG WITH ALL THIS SCIENTIFIC UNCERTAINTY ABOUT EMF WHO'S GOING TO PAY FOR THAT WONDERS BERNARD BUJNOWSKI EMF ISSUE MANAGER FOR THE ALLENTOWN PA UTILITY KEITH FLORIG A RESEARCHER AT RESOURCES FOR THE FUTURE A THINK TANK IN WASHINGTON DC PREDICTS THAT THE COST OF CURBING EMF EXPOSURE FROM BOTH NEW AND EXISTING TRANSMISSION LINES COULD EVENTUALLY RUN AS HIGH AS 10 BILLION ANNUALLY SUCH SPENDING MR FLORIG ESTIMATED IN A STUDY PUBLISHED LAST JULY IN THE JOURNAL SCIENCE WOULD BOOST THE COST OF ELECTRICITY BY SEVERAL PERCENTAGE POINTS CRITICS LIKE MR WITHEY SAY THE SPENDING IS OVERDUE THE UTILITIES TOOK THE WRONG TURN ON THIS ISSUE 10 YEARS AGO WHEN THEY DECIDED TO HUNKER DOWN AND SAY THE EVIDENCE DOESN'T WARRANT SERIOUS MITIGATION HE SAYS NOW THEY HAVE TO BITE THE BULLET AND PAY WHAT'S NECESSARY THE POWERLINE ISSUE HAS BECOME SOMETHING OF A CRUSADE FOR THE 46YEAROLD ATTORNEY MR WITHEY EVEN CALLED IN EXPERTS TO SWEEP HIS SEATTLE HOME TWO YEARS AGO TO SEE IF DANGEROUS ELECTROMAGNETIC FIELDS WERE LURKING WITHIN THEY WEREN'T LAST YEAR WHEN THE EDISON ELECTRIC INSTITUTE A UTILITY TRADE GROUP INVITED HIM TO ADDRESS ITS ANNUAL CONVENTION IN WASHINGTON DC MR WITHEY'S MESSAGE TO SOME 200 NERVOUS UTILITY EXECUTIVES WAS BLUNT DO THE RIGHT THING AND CLEAN UP EMF LEVELS NOW OR YOU'LL END UP PAYING A LOT IN NEGLIGENCE LAWSUITS LATER MR WITHEY AND HIS COLLEAGUES IN THE NASCENT EMF BAR INSIST THEY AREN'T OUT TO REDO THE ASBESTOS ONSLAUGHT WHICH FLOODED COURTS WITH MORE THAN 200000 LAWSUITS WE WANT TO CHANGE CORPORATE CONDUCT HE SAYS NOT LITIGATE LAWSUITS BUT SOME LAWYERS CLEARLY SMELL BLOOD IN THE EMF ISSUE TWO YEARS AGO MR WITHEY HELPED ORGANIZE NINE LAW FIRMS AROUND THE US INTO A GROUP CALLING ITSELF THE ELECTROMAGNETIC RADIATION CASE EVALUATION TEAM THE LAWYERS HAVE BUILT A COMPUTERIZED DATA BANK ON EMF AND SCREEN POTENTIAL CASES WHILE THE GROUP ITSELF DOESN'T FILE LAWSUITS MEMBERS HAVE ALREADY SUED UTILITIES IN CONNECTICUT GEORGIA AND CALIFORNIA CHARGING THAT THEIR POWER LINES CAUSED CANCER MR WITHEY SUED SAN DIEGO GAS & ELECTRIC CO LAST YEAR ALLEGING THAT ITS POWER LINES ARE RESPONSIBLE FOR KIDNEY CANCER IN A FOURYEAROLD GIRL THE CASE WHICH IS EXPECTED TO COME TO TRIAL LATER THIS YEAR IN FEDERAL COURT IN SAN DIEGO IS SEEN BY MANY AS THE FIRST MAJOR COURT TEST OF UTILITIES' EMF LIABILITY MR WITHEY CALLS THE SAN DIEGO CASE A SLAM DUNK AND PREDICTS IT WILL TRIGGER AN AVALANCHE OF CLAIMS SOME OF HIS POTENTIAL OPPONENTS AGREE YOU DON'T NEED SCIENTIFIC PROOF TO GO TO COURT ALTHOUGH YOU MIGHT TO WIN SAYS JESSE DILLON A STAFF ATTORNEY WHO SITS ON PENNSYLVANIA POWER & LIGHT'S EMF STUDY GROUP ALREADY UTILITIES ARE HEARING FROM HOMEOWNERS WHO LIVE NEAR POWER LINES AND ARE BRISTLING OVER PLUNGING PROPERTY VALUES MR WARD SAYS HE WAS CONTACTED RECENTLY BY A PHILADELPHIA MAN WHOSE HOUSE REGISTERED SUCH HIGH EMF LEVELS FROM NEARBY POWER LINES HE MOVED OUT HE SAYS HE IS CONSIDERING SUING THE UTILITY ON THE GROUND THAT ITS POWER LINES HAVE MADE IT IMPOSSIBLE FOR HIS CLIENT TO ENJOY HIS PROPERTY IN BELLINGHAM WASH GUILLERMO POWELL SITS IN HIS LIVING ROOM LOOKING OUT AT A PAIR OF HUGE PYLONS CARRYING PUGET POWER'S TRANSMISSION LINES THROUGH HIS BACKYARD MR POWELL SAYS HE HAS GIVEN UP TRYING TO SELL HIS CEDARSHADED FOURBEDROOM HOUSE EVEN THOUGH HE IS ASKING 15000 LESS THAN THE APPRAISED VALUE ABOUT 50 POTENTIAL BUYERS TURNED AWAY BECAUSE OF THE POWER LINES HE SAYS PEOPLE WOULD COME UP THE DRIVE SEE THE LINES IN THE BACKYARD AND TELL THE REALTOR TO PUT IT INTO REVERSE SAYS MR POWELL HIMSELF A REALESTATE AGENT I HAD NO IDEA PEOPLE WERE SO SCARED OF THIS STUFF MR POWELL'S SOLUTION PUGET POWER SHOULD BURY THOSE LINES HE SAYS AND IF THAT DOESN'T HAPPEN THEN THE HOUSE ISN'T WORTH ANYTHING AND PUGET POWER SHOULD BUY IT SO WE CAN GO SOMEWHERE ELSE PUGET POWER ISN'T BUYING THAT IDEA BUT IT HAS COME UP WITH A NOVEL SOLUTION OF ITS OWN THE UTILITY IS PREPARING TO ASK WASHINGTON'S UTILITIES TRANSPORTATION COMMISSION WHICH REGULATES THE STATE'S POWER LINES TO LET IT BILL CUSTOMERS FOR EMF ABATEMENT UNDER THE PROPOSAL AN AREA LIKE WHATCOM COUNTY THAT WANTS TO CUT EMF EXPOSURE BY BURYING OR RECONFIGURING WIRES WOULD BE GIVEN A RATE MENU CONTAINING EXTRA CHARGES FOR THE WORK PUGET POWER'S PLAN WOULD BE THE FIRST ATTEMPT TO TIE THE COST OF EMF ABATEMENT DIRECTLY TO THE CUSTOMERS RAISING HEALTH CONCERNS UTILITY OFFICIALS SAY THE RATE ADDONS WOULD BE WARRANTED BECAUSE EMF IS AN UNPROVEN HAZARD AND BECAUSE ABATEMENT MEASURES ARE A LUXURY LIKE BURYING LINES FOR AESTHETIC REASONS OUR RESPONSIBILITY IS TO PUT IN THE OVERHEAD LINES SAYS WILLIAM FINNEGAN PUGET POWER'S VICE PRESIDENT FOR ENGINEERING IF PEOPLE WANT UNDERGROUND LINES TO REDUCE EMF THEY OUGHT TO PAY FOR IT BUT STATE REGULATORS ARE LIKELY TO RAISE QUESTIONS ABOUT A UTILITY'S RIGHT TO LIMIT COSTLY EMF ABATEMENT MEASURES JUST TO WELLTODO CUSTOMERS THIS IS A VERY CONTENTIOUS VERY DIFFICULT AREA SAYS RICHARD CASAD ONE OF THE WASHINGTON REGULATORY PANEL'S THREE COMMISSIONERS IT WOULD SEEM GROSSLY UNFAIR TO LEAVE THOSE WITHOUT RESOURCES UNPROTECTED MOREOVER UTILITY REGULATORS IN WASHINGTON AS IN MOST STATES ARE USED TO FOCUSING ON MORE CUTANDDRIED ISSUES LIKE SETTING RATES AND AREN'T ANXIOUS TO BECOME SAFETY ARBITERS WE GO ON THE ASSUMPTION UTILITY MANAGERS GET PAID BIG BUCKS TO MAKE THOSE JUDGMENT CALLS AND OPERATE IN A PRUDENT MANNER SAYS KENNETH ELGIN ASSISTANT DIRECTOR FOR ENERGY FOR WASHINGTON'S REGULATORY AGENCY KARL RABAGO ONE OF TEXAS'S THREE UTILITY COMMISSIONERS CALLS THE EMF ISSUE A MAJOR DILEMMA FOR REGULATORS IT'S A QUESTION OF WHAT DO YOU DO IN THE FACE OF SCIENTIFIC UNCERTAINTY SAYS MR RABAGO A FORMER LAW PROFESSOR AT THE UNIVERSITY OF HOUSTON MR RABAGO FAVORS SPENDING TO REDUCE EMF EXPOSURE EVEN THOUGH THE CANCER LINK IS UNPROVED THE EMF ISSUE HE SAYS HAS BROUGHT OUT THE DARK SIDE OF THE UTILITY INDUSTRY'S CONSERVATIVE APPROACH TO PLANNING WE DON'T DEAL WITH RISK UNTIL IT'S ABSOLUTELY CERTAIN HE SAYS BUT ATTORNEYS LIKE MR WATSON SAY SUCH MITIGATION SPENDING ITSELF CARRIES A POTENTIAL LIABILITY RISK FOR UTILITIES HE OFTEN COUNSELS HIS UTILITY CLIENTS TO MOVE CAUTIOUSLY ON EMF ABATEMENT TO AVOID ADMITTING THERE IS A RISK FROM MAGNETIC FIELDS I TELL THEM TO BE CAREFUL ABOUT MAKING AN UNWARRANTED ADMISSION AND TO MAKE A GOOD RECORD ON WHAT THEY ARE DOING AND WHY THE LAWYER SAYS IN LIGHT OF SCIENTIFIC UNCERTAINTY OVER EMF UTILITIES MUST BE ABLE TO ANSWER QUESTIONS FROM POTENTIAL LITIGATORS LIKE MR WITHEY HE SAYS YOU HAVE TO BE ABLE TO EXPLAIN WHY YOU PUT THE POWER LINE HERE RATHER THAN THERE WE TELL THEM TO THINK THROUGH THESE DECISIONS VERY CAREFULLY 9302050027 930205 MINE WORKERS UNION AND COAL PRODUCERS AT IMPASSE ON PACT A WALL STREET JOURNAL NEWS ROUNDUP THE UNITED MINE WORKERS UNION SAID IT WOULD EXTEND ITS LABOR CONTRACT WITH MAJOR COAL PRODUCERS ONLY UNDER TERMS WORKED OUT BY A FEDERAL AGENCY AN OFFER THE COMPANIES ALREADY REJECTED THE UMW'S ANNOUNCEMENT CAME TWO DAYS AFTER THE BITUMINOUS COAL OPERATORS ASSOCIATION ASKED FOR A 60DAY EXTENSION WITH NO CONDITIONS ATTACHED THE BCOA'S REQUEST WAS AN EFFORT TO GET THE TWO SIDES BACK TO THE BARGAINING TABLE AND END A THREEDAYOLD STRIKE AGAINST TWO PEABODY HOLDING CO COAL COMPANIES PEABODY IS A UNIT OF HANSON PLC A BCOA SPOKESMAN DECLINED TO COMMENT ON THE UNION'S STATEMENT EXCEPT TO SAY THAT EACH SIDE HAS DIFFERENT VIEWS OF THE EXTENSION PROPOSALS ONE PERSON CLOSE TO THE BCOA SAID THE UMW'S OFFER WAS NOTHING NEW NEITHER THE BCOA NOR THE UMW WOULD SAY WHAT THE TERMS WERE OF THE EXTENSION AGREEMENT OFFERED BY THE FEDERAL MEDIATION AND CONCILIATION SERVICE THE BCOA TURNED DOWN THE PROPOSAL BEFORE THE CONTRACT EXPIRED MONDAY THE MAIN STUMBLING BLOCK TO RESTARTING NEGOTIATIONS IS THE UNION'S INSISTENCE THAT PARENT COMPANIES NOT THEIR SUBSIDIARIES BE INVOLVED IN THE CONTRACT THAT COULD PRECLUDE PARENT COMPANIES FROM SETTING UP MINES UNDER COMPANIES NOT INCLUDED IN THE LABOR AGREEMENT AND STAFFING THEM WITH NONUNION WORKERS 9302050026 930205 SPONSOR HOPES TO ROLL UP' REAL ESTATE PARTNERSHIPS SEATTLE A MAJOR SPONSOR OF REAL ESTATE LIMITED PARTNERSHIPS SAID THAT IT WOULD ATTEMPT TO CONSOLIDATE 17 OF THEM INTO A NEW PUBLIC COMPANY THE FIRST REAL ESTATE ROLLUP TO BE ANNOUNCED SINCE CALIFORNIA ENACTED TOUGH NEW REGULATIONS ON THEM SEATTLEBASED SHURGARD INC SAID IT PLANNED TO SEEK INVESTOR APPROVAL TO COMBINE 17 SELFSERVICE STORAGE FACILITY LIMITED PARTNERSHIPS INTO A NEW REAL ESTATE INVESTMENT TRUST A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION VALUED THE DEAL AT AS MUCH AS 371 MILLION THESE TYPES OF REORGANIZATIONS GROUND TO A HALT IN 1991 AFTER COMING UNDER HEAVY CRITICISM FROM INVESTORS AND REFORM MEASURES WERE DEBATED AT A STATE AND FEDERAL LEVEL MANY EARLIER ROLLUPS HAD SADDLED INVESTORS WITH BIG LOSSES WHILE SPONSORS LOGGED CONSIDERABLE PROFITS THE SHURGARD DEAL WILL GIVE INVESTORS IN EACH OF THE PARTNERSHIPS VOTING TO CONSOLIDATE THE OPTION TO RECEIVE BONDS RATHER THAN SHARES IN THE NEW COMPANY THIS OPTION WILL PREVENT OPPONENTS OF THE ROLLUP FROM BEING SADDLED WITH UNWANTED SHARES IN MANY PAST ROLLUPS SUCH CRAMDOWNS LEFT OPPONENTS WITH HUGE LOSSES WHEN SHARE PRICES PLUMMETED THE BONDS WOULD MATURE IN SEVEN YEARS AND WOULD YIELD 12 PERCENTAGE POINTS MORE THAN COMPARABLE TREASURY NOTES AT THE TIME THE DEAL RECEIVES SEC APPROVAL 9302050025 930205 WHAT'S NEWS WORLDWIDE THE SENATE PASSED A BILL GUARANTEEING WORKERS UNPAID FAMILY LEAVE THE LANDMARK BILL APPROVED 7127 REQUIRES COMPANIES WITH MORE THAN 50 EMPLOYEES TO GIVE WORKERS UP TO 12 WEEKS UNPAID LEAVE FOR FAMILY AND MEDICAL EMERGENCIES THE MEASURE COVERS ABOUT 5 OF US COMPANIES AND ABOUT HALF OF ALL EMPLOYEES THE HOUSE WAS EXPECTED TO PASS THE SENATE'S VERSION LAST NIGHT ALLOWING CLINTON TO SIGN THE MEASURE AS EARLY AS TODAY THE PRESIDENT HAD ASKED CONGRESS TO HURRY ON THE LEGISLATION WHICH WAS VETOED TWICE BY BUSH A NUMBER OF STATES ALREADY HAVE PASSED SIMILAR LEGISLATION AND SOME LARGE COMPANIES HAVE ESTABLISHED FAMILY LEAVE POLICIES THAT ARE MORE GENEROUS THAN THE FEDERAL MEASURE PRESIDENT CLINTON HAS CHOSEN FEDERAL JUDGE KIMBA WOOD OF NEW YORK AS HIS NOMINEE FOR ATTORNEY GENERAL SHE HAS BEEN A US DISTRICT JUDGE SINCE 1988 AND IS BEST KNOWN FOR PRESIDING OVER THE SECURITIES FRAUD CASE OF JUNKBOND KING MILKEN AN ANNOUNCEMENT OF HER NOMINATION IS EXPECTED SOON THE WHITE HOUSE IS CONSIDERING APPOINTING A SPECIAL ENVOY TO WORK BEHIND THE SCENES BROKERING A PEACE ACCORD IN BOSNIA DISSATISFIED WITH A PLAN BEING DISCUSSED AT THE UN THE CLINTON ADMINISTRATION HAS DECIDED IT MUST BECOME MORE ACTIVELY ENGAGED IN THE PEACE TALKS AN ADMINISTRATION AIDE SAID CLINTON ANNOUNCED THAT CHRISTOPHER WILL GO TO THE MIDEAST TO TRY TO REOPEN ARABISRAELI NEGOTIATIONS DESPITE A FUROR OVER PALESTINIAN DEPORTATIONS DURING AN EIGHTDAY TRIP STARTING FEB 17 THE SECRETARY OF STATE PLANS TO VISIT SEVERAL NATIONS ACCORDING TO ISRAELI REPORTS CHRISTOPHER TOLD RABIN HE DOESN'T EXPECT TALKS TO RESUME UNTIL APRIL THE SENATE ETHICS COMMITTEE AMENDED ITS RULES TO SHIELD THE PRIVACY OF WITNESSES WHO FEAR BEING QUESTIONED ABOUT THEIR SEXUAL HISTORY THE ACTION CAME AS THE COMMITTEE APPEARED TO EXPAND THE SCOPE OF ITS INVESTIGATION INTO SEXUAL HARASSMENT CHARGES AGAINST OREGON'S SEN PACKWOOD THE CLINTON ADMINISTRATION IS WORKING ON A REGULATORYREVIEW PLAN THAT WOULD REDUCE THE ABILITY OF THE OFFICE OF MANAGEMENT AND BUDGET TO HOLD UP REGULATIONS THE WHITE HOUSE EXPECTS TO UNVEIL A FAR MORE OPEN SYSTEM IN THE SPRING THE HOUSE PASSED A BILL TO FORCE STATES TO MAKE IT EASIER TO REGISTER TO VOTE BY OFFERING VOTER REGISTRATION BY MAIL AND AT MOTOR VEHICLE AGENCIES DEMOCRATS BRUSHED ASIDE REPUBLICAN ATTEMPTS TO PORTRAY THE MEASURE AS AN ENGRAVED INVITATION TO FRAUD THE BILL ESSENTIALLY THE SAME AS ONE VETOED BY BUSH WAS SENT TO THE SENATE FOR ACTION ENERGY SECRETARY O'LEARY PLANS TO TAKE A HARD LOOK AT SPENDING FOR ENVIRONMENTAL CLEANUP AT ATOMIC WEAPONS SITES AND SAID SHE MAY HAVE TO SHAVE SOME MONEY FROM THE PROGRAM THE ARMS CLEANUP BUDGET HAS RISEN STEADILY IN RECENT YEARS ABOUT 12 BILLION HAS BEEN SPENT SINCE 1990 TO REMOVE TOXIC WASTE AT WEAPONS FACILITIES US AND UN COMMANDERS MOVED TO SHORE UP A CEASEFIRE IN SOMALIA BY DEMANDING THAT RIVAL CLAN LEADERS HAND OVER LISTS OF ALL WEAPONS AND FORCES UNDER THEIR CONTROL A TRUCE WAS SIGNED BY THE 14 FEUDING FACTIONS IN ETHIOPIA LAST MONTH BUT IT HAS BEEN IGNORED REPEATEDLY GERMAN PROSECUTORS CALLED OFF THE CASE AGAINST FORMER EAST GERMAN LEADER HONECKER AFTER HE REFUSED TO RETURN FROM CHILE TO RESUME TRIAL ON MANSLAUGHTER CHARGES THE TRIAL ORIGINALLY ABANDONED LAST MONTH BECAUSE OF HONECKER'S FAILING HEALTH HAD BEEN ORDERED TO RESUME AFTER AN APPEALS COURT RULED THE CASE ENDED IMPROPERLY YALE SCIENTISTS DEFENDED THE ACCURACY OF DNA FINGERPRINTING AND SAID A STUDY LAST YEAR URGING A MORE CAUTIOUS APPROACH TO THE TECHNOLOGY IS FLAWED THEY WROTE IN SCIENCE MAGAZINE THAT THERE IS NO BASIS FOR THE NATIONAL RESEARCH COUNCIL'S CAUTION ABOUT THE TECHNIQUE COMPARING DNA FROM BLOOD HAIR OR TISSUE SAMPLES AT A CRIME SCENE TENS OF THOUSANDS OF FILIPINOS PREPARED TO FLEE HOMES THREATENED BY MAYON VOLCANO AFTER SCIENTISTS WARNED A MAJOR ERUPTION SEEMED IMMINENT OFFICIALS SAID 35000 PEOPLE MAY HAVE TO BE EVACUATED FROM TOWNS NEAR THE VOLCANO 205 MILES SOUTHEAST OF MANILA AT LEAST 45 PEOPLE DIED TUESDAY WHEN STEAM AND MUD SPEWED FROM MAYON 9302050024 930205 TECHNOLOGY CHIPS & TECHNOLOGIES AND INTEL CORP SETTLE THEIR PATENT LAWSUITS SANTA CLARA CALIF INTEL CORP AND CHIPS & TECHNOLOGIES INC SAID THEY HAVE SETTLED A SERIES OF PATENT LAWSUITS BETWEEN THE TWO COMPANIES SEPARATELY CHIPS & TECHNOLOGIES SAID THAT IT WAS POSTING A NARROWING LOSS IN ITS FISCAL SECOND QUARTER LARGELY CAUSED BY A 17 MILLION RESTRUCTURING CHARGE INTEL FIRED THE FIRST SHOT IN WHAT BECAME A BATTLE OF SUITS AND COUNTERSUITS LAST FEBRUARY WHEN IT ALLEGED THAT CHIPS WAS INFRINGING ON THE PATENTS FOR INTEL'S POPULAR 386 AND 387 CHIPS CHIPS IN TURN CHARGED THAT ITS RIVAL HAD STOLEN SOME OF ITS TECHNOLOGY AND WAS VIOLATING ANTITRUST LAWS BY TRYING TO SQUEEZE COMPETITORS OUT OF BUSINESS THE SETTLEMENT GRANTS EACH COMPANY SOME PATENT RIGHTS TO THE OTHER'S TECHNOLOGY AND RELEASES BOTH COMPANIES AND THEIR CUSTOMERS FROM PAST LIABILITIES THE PACT ALLOWS CHIPS TO CONTINUE TO SHIP ITS REMAINING CLONES OF INTEL'S 386 CHIP THE COMPANY PREVIOUSLY ANNOUNCED THAT IT WOULD STOP MAKING SOME OF ITS CLONES FOR REASONS UNRELATED TO THE SUITS CHIPS IN SAN JOSE CALIF POSTED A NET LOSS OF 259 MILLION OR 167 A SHARE IN THE QUARTER ENDED DEC 31 COMPARED WITH A NET LOSS OF 284 MILLION OR 206 A SHARE A YEAR EARLIER REVENUE DROPPED 35 TO 284 MILLION FROM 437 MILLION AS THE COMPANY FACED CONTINUED FIERCE COMPETITION THAT IS DRIVING DOWN PROFIT IN CHIPS' TRADITIONAL MARKET FOR CHIP SETS THAT GO INTO PERSONAL COMPUTERS IN ADDITION TO THE 17 MILLION RESTRUCTURING CHARGE IN THE QUARTER THE LOSS INCLUDED 5 MILLION FOR EXCESS AND SLOW MOVING INVENTORY FOR THE SIX MONTHS ENDING DEC 31 CHIP'S NET LOSS WAS 356 MILLION OR 229 A SHARE COMPARED WITH 383 MILLION OR 281 A SHARE A YEAR EARLIER REVENUE FELL 29 TO 547 MILLION FROM 767 MILLION IN THE PERIOD 9302050023 930205 BUSINESS BRIEF REPUBLIC PICTURES CORP MIRAGE'S WYNN HOLDS STAKE OF 95 IN FILM DISTRIBUTOR STEPHEN A WYNN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MIRAGE RESORTS INC OF LAS VEGAS REPORTED A 95 HOLDING OF CLASS A COMMON SHARES IN REPUBLIC PICTURES CORP IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR WYNN SAID HE PURCHASED 156000 CLASS A SHARES FROM JAN 25 TO FEB 2 AT PRICES FROM 925 TO 9432 A SHARE TO BRING HIS STAKE TO 321000 CLASS A SHARES IN AN INTERVIEW MR WYNN SAID HE BOUGHT THE SHARES STRICTLY AS A PERSONAL INVESTMENT HE ADDED THAT HE HAS KNOWN RUSSELL GOLDSMITH REPUBLIC'S CHAIRMAN AND CHIEF EXECUTIVE FOR SEVERAL YEARS AND THINKS HIGHLY OF HIM AS PREVIOUSLY ANNOUNCED BLOCKBUSTER ENTERTAINMENT CORP AGREED TO PAY 25 MILLION FOR A MINORITY STAKE IN REPUBLIC AN INDEPENDENT FILM DISTRIBUTOR AND PRODUCER BASED IN LOS ANGELES 9302050022 930205 BUSINESS BRIEF ABITIBIPRICE INC EMPLOYEES PLAN TO OPERATE PAPER MILL IN THUNDER BAY ABITIBIPRICE INC SAID IT REACHED PRELIMINARY AGREEMENT TO TRANSFER OWNERSHIP OF ITS LOSSRIDDEN COATED PAPER MILL IN THUNDER BAY TO A NEW COMPANY TO BE FORMED BY THE MILL'S EMPLOYEES UNDER THE AGREEMENT ABITIBIPRICE WOULD PROVIDE UP TO 20 MILLION CANADIAN DOLLARS US158 MILLION OF CASH TO FUND OPERATIONS AND OTHER EXPENSES THE ONTARIO GOVERNMENT WOULD PROVIDE ADDITIONAL FUNDING THROUGH A DIRECT LOAN AND A LOAN GUARANTEE THOSE AMOUNTS WEREN'T DISCLOSED ABITIBIPRICE IS BASED IN TORONTO ABITIBIPRICE TOOK A WRITEDOWN AGAINST THE MILL'S ASSETS IN LAST YEAR'S THIRD QUARTER AND HAD SAID IT WOULD CLOSE THE MILL IF A BUYER COULDN'T BE FOUND THE MILL EMPLOYS ABOUT 800 AND HAD SALES OF C110 MILLION LAST YEAR IT HAS A LOSS OF C40 MILLION IN 1991 AND ANOTHER C16 MILLION THROUGH THE FIRST SIX MONTHS OF LAST YEAR THE PACT WHICH ALSO INVOLVES CONTRIBUTIONS BY EMPLOYEES IS SUBJECT TO APPROVALS BY THE MILL'S UNIONS AND MANAGEMENT THE ONTARIO GOVERNMENT AND ABITIBIPRICE'S BOARD THE TRANSFER IS EXPECTED TO TAKE PLACE IN MARCH THE COMPANY SAID 9302050021 930205 BUSINESS BRIEF US SHOE CORP JANUARY PERIOD POSTS 4 RISE IN COMPARABLE STORE SALES US SHOE CORP CINCINNATI SAID COMPARABLE STORE SALES ROSE 4 IN ITS WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING OPERATIONS FOR THE FOUR WEEKS ENDED JAN 30 TOTAL SALES FOR ITS RETAILING OPERATIONS ROSE 2 TO 1374 MILLION ON A RETAIL STORE BASE OF 2468 COMPARED WITH 1353 MILLION IN THE YEARAGO PERIOD ON A STORE BASE OF 2516 COMPARABLE SALES IN JANUARY REFLECTED INCREASED PROMOTIONAL ACTIVITY AS OUR APPAREL DIVISIONS CLEARED FALL INVENTORY SAID BANNUS B HUDSON CHIEF EXECUTIVE OVERALL WE ARE DISAPPOINTED BY CONTINUED MIXED RESULTS IN OUR APPAREL DIVISIONS AND ALSO BY PARTICULARLY SOFT RESULTS ACROSS OUR WHOLESALE AND RETAIL FOOTWEAR BUSINESSES WOMEN'S APPAREL SALES IN JANUARY CLIMBED 2 TO 679 MILLION WHILE COMPARABLE STORE SALES ROSE 5 LENSCRAFTERS OPTICAL SALES ROSE 55 TO 563 MILLION OVER JANUARY 1992 WHILE COMPARABLE STORE SALES INCREASED 2 FOOTWEAR SALES FELL 14 TO 132 MILLION WITH FLAT COMPARABLE STORE SALES 9302050020 930205 BUSINESS BRIEF CALLAWAY GOLF CO FOURTHQUARTER NET TREBLED 2FOR1 STOCK SPLIT DECLARED CALLAWAY GOLF CO'S FOURTHQUARTER NET INCOME TREBLED TO 51 MILLION OR 66 CENTS A SHARE AND THE COMPANY DECLARED A 2FOR1 STOCK SPLIT AS WELL AS AN INITIAL DIVIDEND OF 25 CENTS ON THE POSTSPLIT SHARES BOTH THE SPLIT AND THE DIVIDEND WILL BE PAID MARCH 19 TO STOCK OF RECORD FEB 18 AFTER THE SPLIT CALLAWAY GOLF WILL HAVE ABOUT 141 MILLION SHARES OUTSTANDING FOURTHPERIOD SALES MORE THAN DOUBLED TO 367 MILLION IN THE YEAREARLIER FOURTH QUARTER THE CARLSBAD CALIF GOLF CLUB MAKER HAD NET INCOME OF 16 MILLION OR 23 CENTS A SHARE ON SALES OF 155 MILLION THE COMPANY ATTRIBUTED THE BETTER RESULTS TO GROWING DEMAND FOR ITS BIG BERTHA DRIVERS FAIRWAY WOODS AND S2H2 IRONS HOWEVER ELY CALLAWAY CHAIRMAN AND CHIEF EXECUTIVE WARNED THAT IT IS UNREALISTIC FOR ANYONE TO EXPECT THE COMPANY TO CONTINUE GROWING AT THE CURRENT RATE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY CALLAWAY GOLF GAINED 4875 TO 4725 SEPARATELY THE COMPANY NAMED ELMER WARD JR 67 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PALM BEACH CO AS A DIRECTOR 9302050019 930205 BUSINESS BRIEFS BANK OF AMERICA STATE BANK A SUBSIDIARY OF BANKAMERICA CORP WAS GIVEN APPROVAL TO CHANGE ITS NAME TO BANK OF AMERICA COMMUNITY DEVELOPMENT BANK FLUOR CORP SAID ITS FLUOR DANIEL UNIT RECEIVED A 45 MILLION CONTRACT FROM ULTRAMAR CORP FOR ENGINEERING PROCUREMENT AND CONSTRUCTION MANAGEMENT SERVICES AT THEIR WILMINGTON CALIF REFINERY CINCINNATI BELL TELEPHONE CO COMPLETED THE SALE OF ITS RESIDENTIAL EQUIPMENT LEASING AND PHONECENTER STORE BUSINESS TO AMERICAN TELEPHONE & TELEGRAPH CO NORTH AMERICAN NATIONAL CORP SAID ITS SUBSIDIARY PAN WESTERN LIFE INSURANCE CO HAD COMPLETED THE ACQUISITION OF 100 OF CLOSELY HELD HOWARD LIFE INSURANCE FOR 13 MILLION FLEMING COMPANIES INC WILL BUY A DISTRIBUTION CENTER FROM RANDALL'S FOOD MARKETS INC WITH A LONGTERM SUPPLY CONTRACT WITH RANDALL'S FOR 28 MILLION COMPUSA INC WILL OPEN TWO NEW SUPERSTORES THIS MONTH AND RELOCATE ITS ORIGINAL ATLANTA OUTLET RAISING TOTAL STORES TO 40 9302050018 930205 BUSINESS BRIEF KERR ADDISON MINES LTD MINING CONCERN TO SELL STAKE IN ANDERSON EXPLORATION KERR ADDISON MINES LTD SAID IT AGREED TO SELL THROUGH A PUBLIC OFFERING ITS 299 STAKE IN ANDERSON EXPLORATION LTD FOR NET PROCEEDS OF ABOUT 88 MILLION CANADIAN DOLLARS US695 MILLION KERR ADDISON A TORONTO MINING CONCERN SAID IT DECIDED TO SELL ITS STAKE BECAUSE THE SHARES ARE TRADING ABOVE KERR'S BOOK VALUE FOR THE INVESTMENT THE COMPANY FIRST SAID MORE THAN TWO YEARS AGO THAT IT PLANNED TO SELL ITS STAKE IN ANDERSON A CALGARY ALBERTA OIL AND GAS CONCERN AS PART OF A STRATEGY TO FOCUS ON ITS MINING OPERATIONS THE 62 MILLION ANDERSON SHARES HELD BY KERR ADDISON WILL BE SOLD AT 1475 CANADIAN DOLLARS US1165 EACH THROUGH AN UNDERWRITING GROUP LED BY NESBITT THOMSON INC ANDRE FORTIER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KERR ADDISON SAID THE COMPANY PLANS TO PUT THE PROCEEDS INTO SHORTTERM INVESTMENTS HE SAID KERR ADDISON DOESN'T HAVE ANY LONGTERM PLANS FOR THE MONEY 9302050017 930205 EIGHT INSURERS END INDIVIDUAL POLICIES IN NEW YORK STATE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL EIGHT MORE HEALTH INSURERS ANNOUNCED PLANS TO STOP WRITING SMALL GROUP AND INDIVIDUAL POLICIES IN NEW YORK STATE REACTING TO A LAW THAT TAKES EFFECT APRIL 1 THE LAW HAILED BY SOME AS REVOLUTIONARY FORCES INSURERS TO ACCEPT ALL APPLICANTS AND CHARGE ALL POLICYHOLDERS THE SAME RATE REGARDLESS OF THEIR HEALTH OR AGE MANY OF THE WITHDRAWING INSURERS INCLUDING PRUDENTIAL INSURANCE CO OF AMERICA AND METROPOLITAN LIFE INSURANCE CO WRITE ONLY A RELATIVELY SMALL AMOUNT OF THE AFFECTED BUSINESS IN THE STATE BUT ONE OF THEM GUARDIAN LIFE INSURANCE CO OF AMERICA HAS 50000 SMALL GROUP CUSTOMERS COVERING ABOUT 250000 PEOPLE SMALL GROUPS ARE DEFINED AS COVERING 49 OR FEWER PEOPLE LARGE GROUP AND SELFINSURED PLANS USED BY MAJOR EMPLOYERS ARE UNTOUCHED BY THE LAW A SPOKESMAN FOR THE NEW YORK STATE INSURANCE DEPARTMENT SAID THAT SOME WITHDRAWALS WERE EXPECTED AND THAT THE FLIGHT OF INSURANCE COMPANIES WON'T CREATE A HEALTH INSURANCE SHORTAGE FOR THE STATE'S RESIDENTS THE STATE'S 30 HEALTH MAINTENANCE ORGANIZATIONS ARE STAYING IN THE MARKET AS ARE TRAVELERS CORP AETNA LIFE & CASUALTY CORP NEW YORK LIFE INSURANCE CO AND SEVERAL OTHER INSURERS IN ADDITION THE BULK OF THE SMALL GROUP AND INDIVIDUAL BUSINESS IN NEW YORK IS CONDUCTED BY THE STATE'S BLUE CROSS/BLUE SHIELD ORGANIZATIONS THE LAW WAS DESIGNED TO BENEFIT BLUE CROSS BY PREVENTING INSURANCE COMPANIES FROM TAKING ALL OF THE GOODS RISKS AND LEAVING BLUE CROSS WITH THE BAD THERE WILL STILL BE PLENTY OF COMPANIES AROUND THAT WILL WRITE THIS BUSINESS SAID THE INSURANCE DEPARTMENT SPOKESMAN EDWARD KANE GENERAL COUNSEL FOR GUARDIAN SAID THE RESTRICTIONS MAKE IT IMPOSSIBLE FOR A POLICYHOLDEROWNED INSURANCE COMPANY LIKE GUARDIAN TO PRUDENTLY MANAGE ITS RISKS OTHERS DROPPING OUT INCLUDE STATE FARM MUTUAL AUTOMOBILE INSURANCE CO MASSACHUSETTS MUTUAL LIFE INSURANCE CO ITT CORP'S HARTFORD LIFE UNIT LIBERTY MUTUAL INSURANCE CO AND CIGNA CORP'S INA LIFE INSURANCE CO OF NEW YORK ACCORDING TO NEW YORK STATE OFFICIALS EARLIER NATIONWIDE INSURANCE CO AND EQUITABLE COS ANNOUNCED PLANS TO WITHDRAW 9302050016 930205 FERRO IS IN DISCUSSIONS WITH ICI CLEVELAND FERRO CORP SAID IT IS IN DISCUSSIONS TO ACQUIRE IMPERIAL CHEMICAL INDUSTRIES PLC'S POWDER COATINGS BUSINESS IN EUROPE AND NORTH AMERICA BOTH COMPANIES' COATINGS GROUPS HAVE ANNUAL SALES OF ABOUT 100 MILLION IN AUGUST 1991 THE TWO COMPANIES AGREED TO FORM A JOINT VENTURE BUT NEGOTIATIONS BROKE DOWN IN JANUARY 1992 BECAUSE FERRO DIDN'T FEEL ITS 49 INTEREST WOULD BE PROTECTED THE NEW DISCUSSIONS ARE AT AN EARLY STAGE FERRO SAID ALTHOUGH THE PARTIES ARE CONFIDENT THAT AN AGREEMENT WILL BE REACHED IT IS PREMATURE TO FORECAST THE OUTCOME OF THE TALKS FERRO SAID 9302050015 930205 INTERNATIONAL PROCORDIA OF SWEDEN MONTEDISON SPA PLAN TO MERGE DRUG UNITS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM PROCORDIA AB SAID IT HAS ENTERED FINAL NEGOTIATIONS WITH MONTEDISON SPA A UNIT OF ITALY'S FERRUZZI GROUP ABOUT MERGING THEIR PHARMACEUTICAL UNITS INTO A NEW COMPANY THAT WOULD BE ONE OF EUROPE'S BIGGEST DRUG MAKERS THE COMPANIES SAID THEIR INTENTION IS TO COMBINE PROCORDIA'S KABI PHARMACIA UNIT AND MONTEDISON'S ERBAMONT DIVISION WHICH CONTROLS FARMITALIA CARLO ERBA ITALY'S NO 1 DOMESTIC DRUG COMPANY IN CONNECTION WITH THE MOVE PROCORDIA INTENDS TO ACQUIRE A STAKE IN ERBAMONT THE COMPANIES SAID THE ANNOUNCEMENT FOLLOWS SEVERAL DAYS OF RUMORS IN EUROPEAN MARKETS THAT MONTEDISON WAS DISCUSSING THE SALE OF ERBAMONT WITH SEVERAL SUITORS A FERRUZZI SPOKESMAN CONFIRMED THAT MONTEDISON IS COMMITTED TO CONCLUDING THESE NEGOTIATIONS WITH PROCORDIA AND PROCORDIA ALONE WE RULE OUT OTHER POTENTIAL PARTNERS THE COMPANIES EMPHASIZED THAT NO AGREEMENT HAS YET BEEN SIGNED MARKET SPECULATION SUGGESTED THAT ERBAMONT COULD FETCH AS MUCH AS 2 BILLION MANY ANALYSTS AGREE THAT WHILE MONTEDISON LIKELY WILL REMAIN A MAJOR OWNER FOR SOME TIME PROCORDIA IS LIKELY TO WIELD CONTROL OF THE NEW COMPANY PROCORDIA'S KABI PHARMACIA UNIT HAS MADE A FEW MINOR PURCHASES AROUND EUROPE BUT HASN'T YET EARNED MUCH OF A REPUTATION FOR EITHER RESEARCH OR NEW DRUG DEVELOPMENT HOWEVER THAT WOULD CHANGE DRAMATICALLY AFTER A MATCH WITH ERBAMONT A COMBINED COMPANY COULD BE A MAJOR WORLD PLAYER BOASTING ANNUAL SALES OF NEARLY 20 BILLION KRONOR 265 BILLION ERBAMONT'S STRONG US BASE WOULD OPEN A MAJOR NEW TRANSATLANTIC OUTLET FOR KABI THE ITALIAN COMPANY IS KNOWN FOR ITS STRONG ANTIBIOTICS PRODUCTS AND RECENTLY GAINED APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION FOR A NEW DRUG TO TREAT LUNG INFECTIONS THAT AFFLICT MANY AIDS PATIENTS 9302050014 930205 INTERNATIONAL METHANEX TO BUY METHANOL ASSETS FOR 730 MILLION BY DAVID E PARKINSON STAFF REPORTER OF THE WALL STREET JOURNAL VANCOUVER BRITISH COLUMBIA METHANEX CORP SAID IT CONDITIONALLY AGREED TO ACQUIRE THE METHANOL ASSETS OF NEW ZEALAND CONGLOMERATE FLETCHER CHALLENGE LTD IN A TRANSACTION WITH AN INDICATED VALUE OF US730 MILLION FLETCHER CHALLENGE WOULD RECEIVE 250 MILLION IN CASH AND ABOUT 74 MILLION COMMON SHARES OF METHANEX IN THE PROPOSED DEAL THE TRANSACTION WOULD MAKE METHANEX THE WORLD'S LARGEST PRODUCER AND MARKETER OF METHANOL AND WOULD MAKE FLETCHER CHALLENGE THE LARGEST SHAREHOLDER IN THE PETROCHEMICALS CONCERN TO FINANCE THE CASH PORTION OF THE TRANSACTION METHANEX SAID IT AGREED TO SELL TO A GROUP OF CANADIAN UNDERWRITERS 42 MILLION COMMON SHARES AT 825 CANADIAN DOLLARS US651 A SHARE FOR GROSS PROCEEDS OF C3465 MILLION US2736 MILLION THE UNDERWRITING GROUP IS LED BY GORDON CAPITAL CORP OF TORONTO THE TRANSACTIONS WOULD MORE THAN TRIPLE METHANEX'S NUMBER OF SHARES OUTSTANDING TO ABOUT 167 MILLION FROM THE CURRENT 51 MILLION FOLLOWING COMPLETION OF THE ASSET PURCHASE AND SHARE ISSUE FLETCHER CHALLENGE WOULD HOLD ABOUT 43 OF METHANEX'S SHARES THE STAKE HELD BY CURRENT LEADING SHAREHOLDER METALLGESELLSCHAFT CORP THE NEW YORKBASED UNIT OF GERMAN CONGLOMERATE METALLGESELLSCHAFT AG WOULD FALL TO ABOUT 10 FROM ITS CURRENT 32 METHANOL A PETROCHEMICAL PRODUCT MADE FROM NATURAL GAS IS A MAJOR INGREDIENT IN METHYL TERTIARY BUTYL ETHER THE MOST COMMONLY USED ADDITIVE FOR ENHANCING THE OCTANE LEVEL OF GASOLINE METHANEX IS BANKING ON A HUGE GROWTH IN DEMAND FOR METHANOL AS COUNTRIES TOUGHEN THEIR AIRPOLLUTION LAWS THE PRIME GROWTH MARKET FOR METHANOL IS THE US AS A RESULT OF INCREASING OCTANE REQUIREMENTS FOR GASOLINE UNDER THE CLEAN AIR ACT FLETCHER CHALLENGE IS THE WORLD'S LARGEST METHANOL PRODUCER JUST AHEAD OF SAUDI ARABIAN BASIC INDUSTRIES CORP THE SAUDI GOVERNMENTOWNED PETROCHEMICALS CONCERN METHANEX SAID THE PROPOSED ACQUISITION STILL REQUIRES APPROVAL BY REGULATORS AND ITS SHAREHOLDERS AS WELL AS THE CONSENT OF CERTAIN THIRD PARTIES WHO HAVE FINANCED SOME OF FLETCHER CHALLENGE'S METHANOL ASSETS FLETCHER CHALLENGE SAID THE NEW ZEALAND STOCK EXCHANGE GRANTED THE COMPANY A WAIVER FROM REQUIRING SHAREHOLDER APPROVAL METHANEX'S SHAREHOLDERS WILL VOTE ON THE PROPOSAL AT AN ANNUAL AND SPECIAL MEETING MARCH 22 9302050013 930205 MERRILL LYNCH HID INSURER'S LOSSES RTC SAYS IN SUIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL THE RESOLUTION TRUST CORP ACCUSED MERRILL LYNCH & CO AND A FORMER BROKER OF CONSPIRING WITH OFFICERS OF GUARANTEE SECURITY LIFE INSURANCE CO TO HIDE THE INSURER'S INSOLVENCY FROM INVESTORS THE CIVIL RACKETEERING SUIT FILED IN A JACKSONVILLE FLA FEDERAL COURT APPEARS TO DRAW THE NATION'S BIGGEST BROKERAGE FIRM FURTHER INTO THE GUARANTEE SECURITY SCANDAL THE SECURITIES AND EXCHANGE COMMISSION ALREADY IS INVESTIGATING MERRILL'S TRADING WITH GUARANTEE SECURITY A FLORIDA INSURANCE COMPANY SEIZED BY FLORIDA REGULATORS IN 1991 MERRILL'S TRADING COULD HAVE HELPED THE INSURER DECEIVE REGULATORS BY HIDING ITS OWNERSHIP OF MILLIONS OF DOLLARS OF HIGHYIELD JUNK BONDS A STATEAPPOINTED DEPUTY RECEIVER FOR GUARANTEE SECURITY HAS SAID THE INSURER MADE ITS BOOKS LOOK BETTER THAN THEY WERE IN 1985 1986 AND 1988 BY TEMPORARILY SWAPPING ITS JUNK BONDS FOR SAFER TREASURY SECURITIES IN YEAREND TRADES WITH MERRILL THE RTC THE FEDERAL AGENCY OVERSEEING THE BAILOUT OF THE SAVINGSANDLOAN INDUSTRY IS INVOLVED IN THE MATTER BECAUSE FOUR FAILED THRIFTS UNDER ITS CONTROL BOUGHT ABOUT 35 MILLION IN JUNK BONDS ISSUED BY GUARANTEE SECURITY'S PARENT TRANSMARK USA INC BETWEEN 1984 AND 1988 THOSE SECURITIES NOW ARE VIRTUALLY WORTHLESS WITH THE COLLAPSE OF GUARANTEE SECURITY THE RTC SAYS IN ITS SUIT THE RTC IS SEEKING TO RECOVER THE MONEY INVESTED BY THE FOUR THRIFTS CENTRUST FEDERAL SAVINGS BANK MIAMI COLUMBIA SAVINGS & LOAN ASSOCIATION BEVERLY HILLS CALIF IMPERIAL FEDERAL SAVINGS ASSOCIATION SAN DIEGO CALIF AND FAR WEST SAVINGS & LOAN ASSOCIATION NEWPORT BEACH CALIF THE RTC SUIT IS FILED UNDER CIVIL RACKETEERING LAW BECAUSE IT ALLEGES A PATTERN OF WRONGDOING OVER SEVERAL YEARS THE SUIT ALLEGES THAT TRANSMARK KNOWINGLY ISSUED FALSE AND MISLEADING INFORMATION ABOUT ITS FINANCES WHEN THE COMPANY ISSUED 150 MILLION IN PREFERRED STOCK AND DEBT IN THE MID1980S THE SUIT ACCUSES MERRILL AND FORMER BROKER RICHARD ALLERTON OF AIDING TRANSMARK'S DECEPTIVE AND WRONGFUL CONDUCT BY PREPARING FRAUDULENT DOCUMENTATION ON YEAREND SECURITIES TRADES THAT ALLEGEDLY NEVER TOOK PLACE MERRILL CALLED THE ALLEGATIONS RIDICULOUS SAID A MERRILL SPOKESMAN IT APPEARS TO BE A RATHER DESPERATE AND FRUITLESS ATTEMPT TO FIND A DEEP POCKET HE ADDED THAT MERRILL HAD NO INVOLVEMENT WHATSOEVER IN THE CREATION OR SALE OF THE TRANSMARK SECURITIES WHICH ARE THE SUBJECT OF THIS LAWSUIT WE WILL VIGOROUSLY DEFEND THIS MERITLESS ACTION MR ALLERTON COULDN'T BE REACHED TO COMMENT MERRILL DOESN'T DENY THAT IT ENGAGED IN THE YEAREND TRADING BUT INSISTS THAT THERE WAS INVESTMENT RISK INVOLVED AND THUS THE TRADES WEREN'T IMPROPER 9302050012 930205 SEC SETTLES CASE AGAINST BOSTON CO WITH MILD SANCTION BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION SETTLED ITS OVERSTATEDPROFITS CASE AGAINST BOSTON CO WITH A RELATIVELY MILD CEASEANDDESIST ORDER AGAINST FURTHER INFRACTIONS BUT IT TOOK NO ACTION AGAINST SHEARSON LEHMAN BROTHERS INC BOSTON CO'S PARENT THE SEC IN A DEPARTURE FROM ITS USUAL STATEMENTS IN SUCH MATTERS NOTED THE EXTENT OF SHEARSON'S AND BOSTON CO'S COOPERATION IN THE INVESTIGATION AND IN TAKING STRONG CORRECTIVE ACTION SEC OFFICIALS SAID THE COMMISSION INTENDED TO SEND A SIGNAL TO CORPORATIONS AND BROKERDEALERS THAT SELFPOLICING CAN MITIGATE POSSIBLE SANCTIONS BASED ON EMPLOYEES' WRONGDOING SHEARSON IS A UNIT OF AMERICAN EXPRESS CO THE SEC HAD ALLEGED THAT BOSTON CO INFLATED THE PROFITS REPORTED TO SHEARSON THROUGH ACCOUNTING RUSES CAUSING SHEARSON TO OVERSTATE ITS NET INCOME BY 33 MILLION IN 1988 AFTER THE MATTER CAME TO LIGHT SHEARSON RESTATED ITS EARNINGS FOR THE YEAR AND DISMISSED BOSTON CO'S THENPRESIDENT JAMES VON GERMETEN PEOPLE FAMILIAR WITH THE CASE SAID THAT SEC ENFORCEMENT STAFFERS HAD IN FACT RECOMMENDED STRONGER ACTIONS IN THE CASE BUT WERE REBUFFED BY SEC COMMISSIONERS WHO WERE PLEASED WITH THE ACTIONS TAKEN AGAINST MR VON GERMETEN THE SPEEDY RESTATEMENT AND THE INSTITUTION OF INTERNAL CONTROLS TO PREVENT OVERSTATEMENTS IN THE FUTURE MR VON GERMETEN HAS SAID IN THE PAST THAT HE DID NOTHING WRONG AND WAS A SCAPEGOAT IN THE MATTER JUAN MARCELINO THE ACTING REGIONAL DIRECTOR FOR THE SEC IN BOSTON SAID THAT CORPORATIONS CAN TAKE NOTE OF THE FACT THAT FROM A PROSECUTOR'S PERSPECTIVE ANYTIME YOU SEE THEM COOPERATING WITH YOU IT MAKES A DIFFERENCE IN THE ENFORCEMENT ACTION THE COMMISSION WANTS TO SHOW THAT SELFDISCOVERY SELFINVESTIGATION AND SELFPOLICING IS THE WAY TO GO SAID DENNIS KELLEHER AN ATTORNEY FOR SKADDEN ARPS SLATE MEAGHER & FLOM WHO REPRESENTED SHEARSON AND BOSTON CO MR KELLEHER SAID THAT A BOSTON CO DIRECTOR FIRST BROUGHT THE MATTER TO LIGHT INTERNALLY IN NOVEMBER 1988 CAUSING ACTION TO BE TAKEN EVEN BEFORE THE SEC MOVED IN THE MATTER SHEARSON HAS AGREED TO SELL BOSTON CO TO MELLON BANK CORP FOR 145 BILLION IN CASH AND SHARES 9302050011 930205 FIGGIE ADOPTS THREEPRONGED PLAN FOR FUTURE FIRM SEEKS HIGHER PROFITS WORLDCLASS OPERATIONS AND EXPANSION ABROAD BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND FIGGIE INTERNATIONAL INC IS CARRYING OUT THREE SEPARATE BUT RELATED STRATEGIES HARRY E FIGGIE JR CHAIRMAN AND CHIEF EXECUTIVE SAID THE FIRST IS TO INCREASE EARNINGS NEAR TERM MAINLY THROUGH COST REDUCTION THE SECOND IS TO MAKE EACH OF ITS 22 DIVERSIFIED OPERATING DIVISIONS A WORLDCLASS MANUFACTURER AND THE THIRD IS TO EXPAND RAPIDLY ABROAD TO MINIMIZE THE IMPACT OF A FINANCIAL CRISIS THAT MR FIGGIE EXPECTS WILL HIT THE US WITHIN TWO TO THREE YEARS MR FIGGIE SAID THE COMPANY EXPERIENCED AN ABRUPT ORDER UPTURN IN NOVEMBER BUT THE IMPROVEMENT PROBABLY WON'T HAVE A MAJOR IMPACT ON EARNINGS UNTIL THE SECOND HALF OF THIS YEAR OR LATER ORDER BACKLOGS HAVE RISEN ABOUT 25 AFTER MORE THAN TWO YEARS OF DECLINE MR FIGGIE SAID AND A NUMBER OF THE COMPANY'S OPERATING DIVISIONS HAD HIGHER SALES IN JANUARY HE SAID BUT HE DOESN'T HAVE FIGURES YET FROM ALL OF THE UNITS MR FIGGIE WAS INTERVIEWED BEFORE ADDRESSING CLEVELAND SECURITIES ANALYSTS FIGGIE INTERNATIONAL IS BASED IN WILLOUGHBY OHIO A CLEVELAND SUBURB HE SAID FIGGIE INTERNATIONAL WILL DO MOST OF ITS EXPANDING ABROAD IN THE NEXT FEW YEARS PARTLY TO PREPARE FOR A FINANCIAL CRISIS IN THE US HE OUTLINED IN HIS 1992 BOOK BANKRUPTCY 1995 THE BOOK PREDICTS THAT SOARING FEDERAL DEFICITS WILL BRING HYPERINFLATION OR FINANCIAL COLLAPSE BY THE MIDDLE OF THE DECADE MR FIGGIE SAID EARLY INDICATIONS ARE THAT THE CLINTON ADMINISTRATION ISN'T MAKING A SERIOUS EFFORT TO REDUCE THE DEFICIT AND HEAD OFF THE CRISIS FIGGIE INTERNATIONAL'S GOAL IS TO BUILD FOREIGN SALES TO 45 TO 50 OF THE TOTAL BY 1996 FROM ABOUT 17 CURRENTLY MR FIGGIE SAID ANY ACQUISITIONS THE COMPANY MAKES WILL BE OVERSEAS HE ADDED A BALANCE OF ABOUT 5050 BETWEEN US AND FOREIGN SALES WOULD BETTER PREPARE THE COMPANY FOR A US FINANCIAL CRISIS MR FIGGIE SAID BUT IT ALSO WILL PROVIDE OPPORTUNITY FOR FASTER GROWTH IF THE US ESCAPES THE CRISIS HE IS PREDICTING HE SAID THE FOREIGN EXPANSION PLANS ALSO REFLECT GROWTH IN MANY OF THE COMPANY'S OPERATING DIVISIONS TO A SIZE WHERE THEY CAN BUILD FOREIGN PLANTS MR FIGGIE SAID WHEN HE LAUNCHED THE COMPANY 30 YEARS AGO HE SAID HE SOUGHT NICHE MARKETS THAT WERE RELATIVELY IMMUNE TO FOREIGN COMPETITION THAT STRATEGY ALLOWED THE SMALL AND WEAK COMPANIES HE PURCHASED TO GROW BECAUSE OF THE GROWTH PROSPECTS OF EUROPEAN AND ASIAN MARKETS IT IS TIME TO CHANGE THAT STRATEGY EVEN IF THE US DIDN'T FACE A CRISIS HE SAID HE SAID FIGGIE INTERNATIONAL CAN BUILD STRONG BUSINESSES ABROAD IN THOSE SAME PRODUCT NICHES MR FIGGIE SAID THE COMPANY IS MOVING AHEAD WITH A PROGRAM TO MAKE EACH OF ITS DIVISIONS A WORLDCLASS MANUFACTURER MAINLY THROUGH COMPUTERASSISTED MANUFACTURING IN SPITE OF A TEMPORARY NEGATIVE IMPACT ON EARNINGS THE COMPANY BEGAN THE PROGRAM IN 1990 AND EXPECTS TO SEE MAJOR PROFIT BENEFITS AFTER 1995 WHEN MOST OF ITS DIVISIONS WILL HAVE COMPLETED THE TRANSITION MR FIGGIE SAID MANAGEMENT INTRODUCES THE NEW OPERATING METHODS AT FOUR OR FIVE DIVISIONS EACH YEAR HE SAID AND IT TAKES SEVERAL YEARS TO COMPLETE THE RESTRUCTURING AT EACH UNIT IF THE US DOESN'T SUFFER FINANCIAL COLLAPSE FIGGIE INTERNATIONAL WILL HAVE A MAJOR TECHNOLOGICAL ADVANTAGE OVER MOST OF ITS COMPETITORS IN THE SECOND HALF OF THE 1990S MR FIGGIE PREDICTS HE SAID BIG MANUFACTURERS ARE AUTOMATING BUT MANY SMALLER ONES REFUSE TO MAKE THE NEEDED INVESTMENT IN COMPUTERAIDED MANUFACTURING A LOT OF COMPANIES ARE GOING TO DIE BECAUSE THEY WON'T MAKE THE CHANGE FAST ENOUGH HE SAID 9302050010 930205 WHO'S NEWS IRVINE CO IRVINE CO NEWPORT BEACH CALIF NORMAN METCALFE 50 YEARS OLD WAS NAMED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF THIS REAL ESTATE AND LAND DEVELOPMENT COMPANY SUCCEEDING JOHN GALVIN WHO RETIRED LAST YEAR MR METCALFE FORMERLY WAS PRESIDENT OF SUNAMERICA INVESTMENTS A UNIT OF SUNAMERICA INC FORMERLY BROAD INC AND HAD SERVED AS BROAD'S CHIEF FINANCIAL OFFICER 9302050009 930205 CHRYSLER SETS LUXURY CAR PRICES CHICAGO CHRYSLER CORP ANNOUNCED PRICES FOR ITS NEW LUXURY CARS AT THE CHICAGO AUTO SHOW THE 1994 NEW YORKER WILL BE PRICED BEGINNING AT 24294 WHICH WILL INCLUDE DRIVER AND PASSENGER SIDE AIRBAGS AND ANTILOCK BRAKES CHRYSLER SAID IT EXPECTS THE AVERAGE PRICE FOR THE NEW YORKER TO BE CLOSER TO 25391 THE FIVEPASSENGER LHS LUXURY SPORTS SEDAN WILL BE PRICED AT 29046 SLIGHTLY BELOW THE CUTOFF POINT FOR THE LUXURY TAX THE LUXURY TAX STARTS AT 30000 BOTH VEHICLES WILL BE AVAILABLE IN DEALER SHOWROOMS BEGINNING IN APRIL 9302050008 930205 MARKETING PLAYFUL AFTER 1992 GAINS TOY MAKERS ARE READY TO UNVEIL A SLEW OF PRODUCTS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CAN TRADITIONAL TOYS COEXIST PEACEFULLY WITH RESURGING VIDEO GAMES TO THEIR SURPRISE TOY MAKERS FOUND LAST YEAR THAT THE ANSWER MAY BE YES ESPECIALLY IF THEY OFFER LOWPRICED ALTERNATIVES TO EXPENSIVE VIDEO GAMES WHEN THE AMERICAN INTERNATIONAL TOY FAIR OPENS MONDAY IN NEW YORK THE TOY INDUSTRY IS EXPECTED TO REPORT THAT 1992 US TOY SALES ROSE AT LEAST 10 FROM A YEAR EARLIER DESPITE A 33 GAIN IN VIDEO GAME SALES I KNOW VIDEO GAMES HAVE HURT THE TOY INDUSTRY IN THE PAST SAYS ALAN HASSENFELD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HASBRO INC BUT IF YOU'VE GOT A GOOD PRODUCT AND IT'S PRICED RIGHT IT'S GOING TO COEXIST WITH VIDEO WITH LAST YEAR'S SUCCESS IN MIND COMPANIES AT THE 10DAY TOY FAIR WILL UNVEIL 5000 TOYS MOSTLY IN TRIEDANDTRUE CATEGORIES SUCH AS ACTION FIGURES AND DOLLS PRICED UNDER 20 PROMINENT AMONG THEM WILL BE A FLEET OF TOYS WITH OUTER SPACE THEMES EXOSQUADS SNAILIENS BIKER MICE FROM MARS AND WONDER WOMAN AND HER STAR RIDER COMPANIONS TRADITIONAL TOY MAKERS CAN'T REST EASY THOUGH VIDEO GAME SALES ARE EXPECTED TO RISE ANOTHER 20 IN 1993 BOOSTED BY THE PLANNED INTRODUCTION OF A THIRD GENERATION OF VIDEO GAME SYSTEMS INDEED PLAYMATES TOYS INC IS HEDGING ITS BETS THE MAKER OF TEENAGE MUTANT NINJA TURTLES WILL ANNOUNCE LATER THIS YEAR THAT IT'S GETTING INTO THE VIDEO GAME BUSINESS WITH SOFTWARE TO BE PREVIEWED AT THE CONSUMER ELECTRONICS SHOW NEXT JANUARY VIDEO GAMES ARE HERE TO STAY AND WILL HOLD THE SIZE OF THE TOY BUSINESS TO ITS CURRENT LEVELS PREDICTS RICHARD SALLIS PLAYMATES PRESIDENT THAT MEANS GROWTH FOR TOY MANUFACTURERS WILL HAVE TO COME AT THE EXPENSE OF OTHER TOY MANUFACTURERS PERHAPS THE FIERCEST BATTLE AMONG TOY MAKERS WILL COME IN THE 600 MILLION ACTION FIGURE MARKET TOY COMPANIES HOPE TO REPEAT THE SUCCESS OF THE NINJA TURTLE CHARACTERS WHOSE ANNUAL SALES PEAKED AT 500 MILLION IN 1990 BEFORE SLIPPING TO ABOUT 200 MILLION LAST YEAR BUT MARK FREEDMAN THE LICENSOR OF NINJA TURTLES CAUTIONS THERE MAY NEVER BE ANOTHER TURTLES WHEN THE TURTLES WERE INTRODUCED IN 1988 MR FREEDMAN NOTES THEY WERE COMPETING AGAINST ONE NEW ACTION FIGURE LINE IN 1993 THERE WILL BE ABOUT TWO DOZEN THIS YEAR MANY TOY MAKERS WILL BE LOOKING TO THE HEAVENS FOR HELP TAKING CUES FROM TWO CURRENT HITS ALIENS FROM KENNER A UNIT OF INDUSTRY LEADER HASBRO INC AND STAR TREK FROM PLAYMATES PLAYMATES IS INTRODUCING EXOSQUADS SPACE INHABITANTS WHO REGULARLY PLOW THEIR EIGHTINCH TALL EXOFRAME MACHINES INTO PHAETON AND HIS NEFARIOUS NEOSAPIENS TO ACHIEVE REALISTIC BATTLE DAMAGE THE COMPANY SAYS PARTS BREAK AWAY ON CONTACT ACCOMPANIED BY CRUNCHING SOUNDS PLAYMATES WILL ALSO EXPAND ITS STAR TREK LINE ADDING CHARACTERS FROM STAR TREK DEEP SPACE NINE THE NEW TELEVISION SHOW JPI INTERNATIONAL CORP WILL OFFER SNAILIENS WHO RESCUE EARTH CHILDREN FROM A DERANGED LOT OF LUNARTICKS LEWIS GALOOB TOYS INC'S BIKER MICE FROM MARS ALSO PERFORM GOOD WORKS BEAMING BACK TO EARTH HASBRO'S GI JOE TEAMS UP WITH STREET FIGHTER II CAPCOM USA INC'S BLACKBELT HIT OF THE VIDEO GAME AND ARCADE WORLD TWO POTENTIAL BLOCKBUSTER LINES THIS YEAR INVOLVE DINOSAURS ONE IS TIED TO BARNEY THE TITLE CHARACTER IN A CHILDREN'S TV PROGRAM CREATED BY LYONS GROUP THE OTHER IS LINKED TO JURASSIC PARK A STEPHEN SPIELBERG MOVIE ABOUT DINOSAURS GONE WILD HASBRO WHOSE UNITS WILL MAKE BOTH TOY LINES COULD PULL IN 100 MILLION IN SALES FROM ITS BARNEY GAMES PUZZLES BABY PRODUCTS AND PLUSH DOLLS INCLUDING ONE THAT SPOUTS 500 PHRASES SAYS JIM SILVER PUBLISHER OF TOY BOOK A TRADE PUBLICATION AND WHILE SOME ANALYSTS CONSIDER THE PLOT OF JURASSIC PARK TOO VIOLENT TOY BUYER STEPHEN SANDBERG SAYS THE TOY LINE COULD BE A BIG HIT SET ON AN ISLAND WHERE CLONED DINOSAURS RUN AMOK THE THEME LENDS ITSELF TO CAGES BOATS SEAPLANES AND TOUR JEEPS THE STUFF OF FANTASY HE SAYS MATTEL INC WILL TRY TO BRIDGE THE GENDER GAP WITH AN ACTION DOLL FOR GIRLS IT WILL PRODUCE WONDER WOMAN AND THE STAR RIDERS UNDER A LICENSE AGREEMENT WITH WARNER BROS' DC COMICS IT'S AN UNUSUAL VENTURE INTO A RATHER UNTESTED CATEGORY THAT HAS TRADITIONALLY APPEALED TO BOYS SAYS JILL KRUTICK AN ANALYST FOR SALOMON BROTHERS INC UNRELATED TO THE WONDER WOMAN TV SHOW OF A FEW YEARS AGO MATTEL'S ACTION DOLLS FREEZE OPPONENTS IN BUBBLES AND STUN THEM WITH SPRAYS OF SWEET SCENTS A MATTEL SPOKESWOMAN ADDS THAT THE NEW WONDER WOMAN SUPER HEROINE WILL BE NONVIOLENT AND HAVE LOTS OF HAIR TO COMB BOYS TOO WILL HAVE A GENDER BENDER SPURRED BY THE POPULARITY OF TROLLS DOLLS AMONG GIRLS THE INDUSTRY WILL ROLL OUT FOUR TROLL ACTION FIGURES FOR BOYS THERE WILL BE BATTLE TROLLS FROM HASBRO TROLL WARRIORS FROM TYCO TOYS INC AND TEENAGE MUTANT NINJA TURTLE TROLLS FROM PLAYMATES AND ACE NOVELTY CO WHICH MAKES A TROLL LINE FOR GIRLS IS BRINGING OUT STONE PROTECTORS WHICH ARE TROLLS WITHOUT THE NAME ALTHOUGH ELECTRONIC TOYS PROVED TO BE COSTLY FADS FOR TOY COMPANIES IN THE LATE 1980S SOME TOY MAKERS WILL COME OUT WITH A NEW BREED LEADING THE PACK WILL BE DON KINGSBOROUGH WHO RETURNS TO THE INDUSTRY AFTER A FOURYEAR HIATUS WITH A NEW COMPANY YES ENTERTAINMENT CORP BEST KNOWN FOR CREATING TEDDY RUXPIN AND LAZER TAG MR KINGSBOROUGH PLANS TO INTRODUCE COMES TO LIFE BOOKS A LINE OF TALKING STORYBOOKS WHEN ONE OF THE BOOKS IS TOUCHED WITH A COMES TO LIFE DISCPLAYER A VOICE READS THE STORY FROM A SERIES OF MICRODISKS BOOKS WILL RETAIL FOR ABOUT 6 THE DISCPLAYER FOR 25 MR KINGSBOROUGH'S OTHER HIGHTECH ITEM TV TEDDY IS A SOFTBODIED BEAR THAT CAN LAUGH ASK QUESTIONS AND COMMENT ON THE MORAL OF CERTAIN TV SHOWS AND VIDEOTAPES A PATENTED TECHNOLOGY ALLOWS THE BEAR TO PICK UP RADIO SIGNALS FROM A TV SHOW AND CONVERT THEM INTO WORDS AND MOVEMENTS IT WILL RETAIL FOR ABOUT 70 TYCO THIS YEAR HOPES TO BUILD ON ITS SUCCESS IN ANOTHER NICHE BLACK DOLLS ENCOURAGED BY STRONG CHRISTMAS SALES OF ITS KENYA DOLL THE COMPANY PLANS TO DOUBLE PRODUCTION CHANGING DEMOGRAPHICS RISING INCOME AND HEIGHTENED ETHNIC AWARENESS ARE CREATING A BURGEONING MARKET SAYS JACOB MILES III PRESIDENT AND CHAIRMAN OF CULTURAL EXCHANGE CORP WHICH MAKES MULTICULTURAL GAMES TOYS AND STATIONERY ANOTHER EXPANDING NICHE IS SOCALLED SPORTS TOYS FETCHING ONLY A FEW MILLION DOLLARS IN SALES FIVE YEARS AGO FROM SUCH ITEMS AS KENNER'S NERF FOOTBALL THE CATEGORY HAS SWELLED TO ABOUT 150 MILLION IN ANNUAL SALES KENNER'S NERF PRODUCTS WITH ANNUAL SALES NOW OF ABOUT 70 MILLION LEAD THE FIELD FOLLOWED BY MATTEL'S AVIVA UNIT DOING ABOUT HALF KENNER'S BUSINESS ODDZON PRODUCTS INC THE MAKER OF KOOSH BALL IS ALSO A PLAYER ODDZON INTRODUCTIONS INCLUDE VORTEX A FOOTBALL WITH A TORPEDOLIKE FIN AND BOINGO BALL A BOUNCING SPHERE OF FABRIC AND FOAM TWICE THE SIZE OF A BASKETBALL BOTH ARE DESIGNED TO MAKE SPORTS EASIER FOR CHILDREN TO PLAY THE COMPANY SAYS A SAMPLE QUESTION WHICH TWO MEMBERS OF THE DREAM TEAM WERE THE ONLY TWO TO FOUL OUT OF A SUMMER OLYMPICS BASKETBALL GAME ANSWER PATRICK EWING AND CHARLES BARKLEY 9302050007 930205 MCDONNELL DOUGLAS CONTRACT LONG BEACH CALIF MCDONNELL DOUGLAS CORP SAID IT RECEIVED A 628 MILLION CONTRACT FROM THE US AIR FORCE FOR SOCALLED LONGLEAD FUNDING OF EIGHT C17 MILITARY TRANSPORT PLANES AUTHORIZED IN THE 199394 DEFENSE BUDGET THE AWARD IS FOR THE SIXTH PRODUCTION LOT OF C17S STARTING WITH THE 21ST PRODUCTION AIRCRAFT TO DATE ST LOUISBASED MCDONNELL DOUGLAS HAS BEGUN WORK ON 15 OF THE AIRCRAFT 9302050006 930205 FINANCING BUSINESS AST RESEARCH INC AST RESEARCH INC IRVINE CALIF SAID IT HAS FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF LIQUID YIELD OPTION NOTES WHICH ARE ZERO COUPON CONVERTIBLE SUBORDINATED NOTES WITH NO PERIODIC INTEREST PAYMENTS DUE FEBRUARY 2013 THE COMPUTER MAKER SAID MERRILL LYNCH & CO WILL UNDERWRITE THE OFFERING THE PROCEEDS OF WHICH WILL GO TO GENERAL CORPORATE USE 9302050005 930205 UK'S FISONS UNVEILS ALLIANCE WITH ALLERGAN LINKUP COVERS DEVELOPMENT AND MARKETING IN US OF OPHTHALMIC PRODUCTS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL BRITISH DRUG MAKER FISONS PLC UNVEILED A STRATEGIC ALLIANCE WITH ALLERGAN INC OF IRVINE CALIF COVERING JOINT DEVELOPMENT AND MARKETING OF OPHTHALMIC PRODUCTS IN THE US FINANCIAL TERMS OF THE ALLIANCE WEREN'T DISCLOSED THE MOVE IS THE LATEST STEP IN A SWEEPING OVERHAUL UNDER NEW MANAGEMENT INSTALLED AT THE BRITISH COMPANY LAST YEAR IN RECENT MONTHS FISONS HAS SOLD VARIOUS NONCORE OPERATIONS SUCH AS OVERTHECOUNTER DRUGS TO RAISE CASH AND FOCUS ON THE FLAGSHIP PHARMACEUTICAL BUSINESS MARKETING PARTNERSHIPS SUCH AS THE FISONSALLERGAN LINKUP HAVE BECOME INCREASINGLY COMMON AMONG DRUG MAKERS EAGER TO BOOST SALES IN SPECIALIST NICHES SUCH AS OPHTHALMICS OR IN MAJOR MARKETS LIKE THE US WHERE THEY LACK SUFFICIENT CLOUT BUT FISONS' PREVIOUS MANAGEMENT VEHEMENTLY SHUNNED SUCH COLLABORATIONS THEIR OLD MANAGEMENT WAS DEAD SET AGAINST COMARKETING BECAUSE OF SOME BAD EXPERIENCES THEY HAD EXPLAINED JO WALTON A PHARMACEUTICAL ANALYST FOR LEHMAN BROTHERS IN LONDON WHEN FISONS LAUNCHED ITS BIGGEST SELLING DRUG INTAL IN THE US FOR EXAMPLE LOCAL MARKETING PARTNER SYNTEX CORP DID SUCH A LACKLUSTER JOB THAT FISONS WOUND UP BUYING BACK RIGHTS AND HANDLING INTAL MARKETING ALONE ANYWAY BUT NEW CHAIRMAN PATRICK EGAN AND CHIEF EXECUTIVE CEDRIC SCROGGS ARE MUCH MORE FLEXIBLE AND HAVE TAKEN A MUCH MORE MODERN APPROACH MS WALTON SAID THE NEW DIRECTION HAS BOOSTED FISONS' BATTERED SHARE PRICE WITH THE STOCK GAINING 45 PENCE TO 227 PENCE 326 IN LONDON TRADING THURSDAY THUS WHEN TILADE A BALLYHOOED NEW ASTHMA DRUG FINALLY RECEIVED REGULATORY CLEARANCE FROM THE US FOOD AND DRUG ADMINISTRATION IN DECEMBER FISONS IMMEDIATELY ANNOUNCED THE PRODUCT WOULD BE COPROMOTED IN AMERICA WITH RHONEPOULENC RORER INC BY MULTIPLYING THE NUMBER OF SALESMEN PROMOTING A NEW PRODUCT COPROMOTION ALLOWS COMPANIES TO REACH PEAK SALES QUICKER AND THUS MAXIMIZE PROFITS DURING A DRUG'S LIMITED PERIOD OF PATENT PROTECTION UNDER THE ALLIANCE WITH ALLERGAN FISONS' 400 US SALESPEOPLE WILL COMARKET THE US COMPANY'S OPHTHALMIC DRUG ACULAR IN TURN ALLERGAN'S SALES FORCE IS TO COPROMOTE FISON'S OPHTHALMIC DRUG OPTICROM ASSUMING THAT DRUG IS REREGISTERED BY THE FDA OPTICROM WAS WITHDRAWN 18 MONTHS AGO AFTER FDA INSPECTORS UNCOVERED MANUFACTURING PROBLEMS DURING A ROUTINE CHECK OF FISONS UK FACTORY FISONS HAS MADE MAJOR IMPROVEMENTS IN THE OPTICROM PLANT AND COMPANY OFFICIALS SAY THEY KNOW OF NO REASON WHY THE DRUG SHOULDN'T BE ALLOWED BACK ON THE MARKET DESPITE REINSPECTIONS HOWEVER FDA APPROVAL HASN'T COME AND NO RELAUNCH DATE HAS BEEN SET SOME ANALYSTS SUGGESTED THAT THE LINKUP WITH ALLERGAN MAY HELP BREAK THE IMPASSE WITH THE FDA IN ANY CASE THEY ADDED IF IT EVER GETS BACK ON THE MARKET OPTICROM WILL NEED ALL THE MARKETING MUSCLE IT CAN MUSTER 9302050004 930205 COMMODITIES WHEAT FUTURES PRICES SLIDE AS PROSPECTS DIM FOR RESUMPTION OF GRAIN TRADE WITH RUSSIA BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US WHEAT PRICES TUMBLED AMID SKEPTICISM THAT THE CLINTON ADMINISTRATION CAN STOP RUSSIA'S FOOD CREDIT CRISIS FROM SNOWBALLING IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE WHEAT CONTRACT FOR MARCH DELIVERY SANK EIGHT CENTS TO SETTLE AT 36725 A BUSHEL THE DECLINE HELPED DEPRESS PRICES OF FUTURES CONTRACTS FOR CORN AND SOYBEANS RUSSIA TRADITIONALLY ONE OF THE BIGGEST IMPORTERS OF US WHEAT HASN'T BOUGHT A SIGNIFICANT AMOUNT SINCE IT WAS SUSPENDED FROM THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM IN NOVEMBER FOR FALLING BEHIND ON LOAN PAYMENTS THE DEPARTMENT HELPS CERTAIN NATIONS SUCH AS RUSSIA ARRANGE THREEYEAR LOANS TO IMPORT US COMMODITIES BY GUARANTEEING THAT THE US WILL REPAY THE LOAN IF THE IMPORTER CANNOT ACCORDING TO SOME TRADERS THE SUSPENSION HAS PROBABLY COST THE US FARM ECONOMY ABOUT 400 MILLION IN LOST GRAIN EXPORTS TO RUSSIA SEVERAL INTERNATIONAL LENDERS WITH MUCH LARGER GUARANTEED LOANS TO RUSSIA ARE EXPECTED TO FILE CLAIMS AGAINST THE AGRICULTURE DEPARTMENT BY THE END OF THE MONTH IF RUSSIA'S CREDIT CRISIS HASN'T EASED BY THEN IT'S DIFFICULT TO KEEP OPTIMISTIC MUCH LONGER AN EXECUTIVE OF ONE OF THE BANKS SAID YESTERDAY RUSSIA IS RESPONSIBLE FOR REPAYING ABOUT 42 BILLION IN FOOD LOANS THAT IT AND THE FORMER SOVIET UNION ARRANGED UNDER THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM MANY OF THOSE LOANS DON'T HAVE TO BE REPAID FOR A FEW YEARS YET WHEAT PRICES ROSE SLIGHTLY WEDNESDAY AFTER AGRICULTURE SECRETARY MIKE ESPY TOLD CONGRESS THAT SOLVING THE RUSSIAN GRAIN CREDIT SITUATION IS A PRIORITY AND THAT THE ADMINISTRATION IS CONSIDERING SEVERAL OPTIONS TO RESTART GRAIN TRADE TO RUSSIA BUT WHEAT PRICES FELL YESTERDAY AMID THE GROWING PERCEPTION THAT THE CLINTON ADMINISTRATION'S OPTIONS ARE LIMITED THE MARKET IS GETTING MORE SKEPTICAL SAID JOHN PETTY A GRAIN ANALYST AT GRAIN SERVICE CORP ATLANTA IT'S HARD TO BE BULLISH ABOUT SOMETHING THAT WE MIGHT HAVE TO GIVE AWAY A DIRECT FOOD LOAN TO RUSSIA WOULD BE HAZARDOUS BECAUSE MOSCOW CLEARLY ISN'T A GOOD CREDIT RISK AND SOME GRAIN INDUSTRY SOURCES ARE ESTIMATING THAT SUCH A LOAN WOULD HAVE TO BE IN THE 1 BILLION RANGE IN ORDER FOR RUSSIA TO CLEAR UP ITS EXISTING DEBT PROBLEMS AND RESUME IMPORTING US GRAIN TRADERS ARE SPECULATING THAT THE ADMINISTRATION MIGHT BE CONSIDERING A WAY TO BARTER US GRAIN TO RUSSIA INDEED SOME FORMER SOVIET REPUBLICS HAVE BEEN SWAPPING GOODS SUCH AS COTTON FOR US COMMODITIES THROUGH COMPLICATED THIRDPARTY TRANSACTIONS UZBEKISTAN HAS REPORTEDLY IMPORTED ROUGHLY 15 MILLION METRIC TONS OF US CROPS THIS WAY IN RECENT MONTHS A METRIC TON EQUALS ABOUT 220462 POUNDS A US FARMEROWNED COOPERATIVE AGREED EARLIER THIS WEEK TO BARTER 50000 METRIC TONS OF WHEAT TO A FORMER SOVIET REPUBLIC CANADA IS REPORTEDLY INTERESTED IN BARTERING GRAIN FOR RUSSIAN OIL BUT TRADERS SAY THAT BARTER IS TOO COMPLICATED A WAY OF DOING BUSINESS FOR RUSSIA TO IMPORT A NORMAL VOLUME OF US GRAIN SOME OTHER OPTIONS FLOATING AROUND WASHINGTON INCLUDE STRETCHING OUT THE REPAYMENT PERIOD FOR GUARANTEED LOANS TO SEVEN YEARS FROM THREE YEARS AS WELL AS DONATING FOOD TO MOSCOW SOYBEAN PRICES WERE ALSO DEPRESSED BY FORECASTS THAT BRAZIL IS HARVESTING A RECORD SOYBEAN CROP OF ROUGHLY 22 MILLION METRIC TONS BRAZIL IS A MAJOR COMPETITOR OF THE US IN THE WORLD SOYBEAN TRADE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY WITH THE FEB 13 MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FAST APPROACHING PETROLEUM FUTURES RESUMED THE RALLY THAT BEGAN LAST WEEK ON EXPECTATIONS THAT THE OIL MINISTERS WILL AGREE ON A BIG CUT IN PRODUCTION LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY SURGED 37 CENTS TO SETTLE AT 2030 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE THE BIGGEST PART OF THE PRICE JUMP CAME AFTER ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT RESTATED IN CARACAS WHAT HE HAS BEEN SAYING FOR SEVERAL DAYS THERE IS A CONSENSUS AMONG THE 12 MEMBERS OF OPEC FOR A PRODUCTION CUT OF AROUND ONE MILLION BARRELS A DAY THEN MR PARRA LEFT CARACAS TO VISIT GABON NIGERIA AND LIBYA FOR FURTHER WORK ON THE CONSENSUS WHILE THE FOCUS WAS ON THE COMING OPEC MEETING TRADERS ALSO CITED TECHNICAL FACTORS THE PROMISE OF COLDER WEATHER IN THE NORTHEAST US AND REPORTS OF FURTHER DELAYS IN LOADING OIL TANKERS IN THE NORTH SEA MORE THAN ANYTHING THIS WAS A MARKET RESPONDING BULLISHLY TO THE TYPE OF THING IT WOULDN'T HAVE RESPONDED TO TWO WEEKS AGO SAID PETER BEUTEL A TRADER WITH BRODY WHITE & CO COTTON COTTON FUTURES PRICES SOARED AMID TIGHTENING SUPPLIES STRONG OVERSEAS DEMAND AND A FADING THREAT THAT LESSER QUALITY COTTON WILL BE TENDERED AGAINST THE MARCH CONTRACT ANALYSTS SAID ON THE NEW YORK COTTON EXCHANGE COTTON FOR MARCH DELIVERY CLIMBED 178 CENTS TO 6176 CENTS A POUND WHILE THE ACTIVELY TRADED MAY CONTRACT CLOSED 172 CENTS HIGHER AT 6240 CENTS THE THREAT OF ARIZONA COTTON BEING TENDERED AGAINST THE MARCH CONTRACT SEEMS TO HAVE BEEN REMOVED SAID THOMAS MUELLER AN ANALYST WITH MERRILL LYNCH NOW THE MARKET IS CLEARLY CONCENTRATING ON TIGHTER SUPPLIES IN THE DELTA AND THE SOUTHEAST AND THE FACT THAT WEST TEXAS HIGHPLAINS SUPPLIES ARE COMPLETELY SOLD OUT HE SAID ANALYSTS NOTED THAT FUTURES PRICES WERE ALSO BOLSTERED YESTERDAY BY NEWS THAT US EXPORTS FOR THE WEEK ENDED JAN 28 WERE 38000 BALES HIGHER THAN ORIGINALLY EXPECTED AT 138000 BALES THEY SAID THAT MAY COTTON COULD TEST 68 CENTS A POUND IN THE WEEKS AHEAD ON BOTH STRONG FUNDAMENTAL AND TECHNICAL FACTORS COFFEE PRICES FOR COFFEE FUTURES TUMBLED AS TRADERS CONCLUDED THAT THE INTERNATIONAL COFFEE TALKS ENDING TODAY WON'T PRODUCE A NEW AGREEMENT ON EXPORTS PRICES FOR COFFEE FOR MAY DELIVERY FELL 145 CENTS TO 6645 CENTS A POUND THE STRONG DECLINE AFTER WEDNESDAY'S RETREAT OF 125 CENTS COMES ON THE HEELS OF A SHORTLIVED RALLY MONDAY AND TUESDAY WHEN REPORTS OF A SMALLERTHANEXPECTED BRAZILIAN CROP LIFTED THE MARKET PESSIMISM THAT THE INTERNATIONAL COFFEE ORGANIZATION WILL CONCLUDE A NEW EXPORT ACCORD BEFORE THEIR MARCH DEADLINE IS PREVENTING ANY KIND OF SUSTAINED RALLY ACCORDING TO SOME ANALYSTS THERE'S BEEN VIRTUALLY NO PROGRESS AT THE TALKS AND THIS HAS KEPT THE MARKET NERVOUS SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST AT MERRILL LYNCH 9302050003 930205 CAMPBELL SOUP OVERCOMES OPPOSITION ACQUIRES MAJORITY INTEREST IN ARNOTTS CAMDEN NJ CAMPBELL SOUP CO OVERCAME FOURTH MONTHS OF OPPOSITION AND ACQUIRED A MAJORITY INTEREST IN ARNOTTS LTD OF AUSTRALIA BUT THE COOKIE AND CRACKER MAKER CONTINUED TO INSIST IT ISN'T UNDER CAMPBELL'S CONTROL CAMPBELL ALREADY OWNED A 33 STAKE IN ARNOTTS WHEN IT MADE AN UNSOLICITED BID FOR MAJORITY CONTROL LAST OCTOBER FIRST OFFERING 880 AUSTRALIAN DOLLARS US597 A SHARE ARNOTTS COUNTERED BY TAKING ITS AMERICAN SUITOR TO COURT AND LAUNCHING AN APPEAL TO SHAREHOLDERS FOR ARNOTTS TO REMAIN IN AUSTRALIAN HANDS BUT CAMPBELL WHICH WON AUSTRALIAN COURT APPROVAL TO PROCEED WITH THE BID RAISED THE OFFER TO A950 A SHARE AND CROSSED THE 50 THRESHOLD YESTERDAY WHEN A LARGE ARNOTTS SHAREHOLDER AUSTRALIAN MUTUAL PROVIDENT SOCIETY ACCEPTED CAMPBELL'S OFFER FOR A SIGNIFICANT PORTION OF ITS 8 STAKE CAMPBELL NOW OWNS 537 OF ARNOTTS AND THE SWEETENED OFFER VALUES THE AUSTRALIAN COMPANY AT A132 BILLION US895 MILLION YET ARNOTTS THE WORLD'S SEVENTHLARGEST COOKIE AND CRACKER COMPANY STUBBORNLY INSISTED THAT CONTROL OF THE COMPANY HADN'T CHANGED HANDS ARNOTTS MAINTAINED THAT A 1985 COURT DECISION REQUIRES CAMPBELL TO OWN 85 OF THE COMPANY TO GAIN CONTROL WHILE CAMPBELL SOUP HAS MORE THAN 50 OF ARNOTTS IT DOES NOT HAVE CONTROL BILL PURDY CHAIRMAN OF ARNOTTS SAID IN A STATEMENT CAMPBELL'S MANAGEMENT AND ANALYSTS SAID THE COURT DECISION DOESN'T APPLY AND THAT IT WAS JUST A MATTER OF TIME BEFORE MANAGEMENT CAPITULATED NO BOARD CAN ACT CONTRARY TO THE VIEWS OF A MAJORITY OF ITS SHAREHOLDERS A CAMPBELL'S SPOKESMAN SAID IT IS A DONE DEAL ADDED MICHAEL BRANCA A FOOD ANALYST WITH NATWEST SECURITIES CORP THEY HAVE SUCCESSFULLY GAINED CONTROL OF ARNOTTS IN NEW YORK STOCK EXCHANGE TRADING CAMPBELL CLOSED AT 41625 DOWN 375 CENTS ARNOTTS SHARES CLOSED AT A951 DOWN ONE AUSTRALIAN CENT ON THE AUSTRALIAN STOCK EXCHANGE CAMPBELL SAID THE ARNOTTS BRAND WILL SERVE AS A SPRINGBOARD INTO THE FASTGROWING 3 BILLION ASIAN BISCUIT MARKET ON A CONSOLIDATED BASIS CAMPBELL WILL BEGIN TO INCLUDE ARNOTTS SALES AND EARNINGS RESULTS IN ITS FINANCIAL REPORTS A CAMPBELL SPOKESMAN SAID ARNOTTS HAD US465 MILLION IN SALES LAST YEAR 9302050002 930205 GM ORDERED BY JURY TO PAY 1052 MILLION OVER DEATH PUNITIVE AWARD DEALS BLOW TO EFFORTS TO DEFEND '73'87 PICKUP TRUCKS BY MICHAEL J MCCARTHY AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP WAS ORDERED BY AN ATLANTA JURY TO PAY 101 MILLION IN PUNITIVE DAMAGES TO THE PARENTS OF A 17YEAROLD BOY WHO DIED IN A FIERY CRASH IN HIS GMC PICKUP TRUCK IN 1989 THE DECISION FOLLOWING A THREEWEEK TRIAL MARKED THE FIRST TIME THAT PUNITIVE DAMAGES HAD BEEN SET IN A SERIES OF COURTROOM BATTLES INVOLVING THE VEHICLES AND WAS SEEN BY LAWYERS AND ANALYSTS AS DEALING A SEVERE BLOW TO GM IN ITS EFFORTS TO DEFEND THE SAFETY OF MILLIONS OF ITS TRUCKS THE PICKUPS ARE ALREADY UNDER FEDERAL INVESTIGATION FOR A POSSIBLE RECALL THE STATE COURT JURORS ALSO AWARDED 42 MILLION IN COMPENSATORY DAMAGES TO ELAINE AND THOMAS MOSELEY OF SUBURBAN ATLANTA IN THE DEATH OF THEIR SON SHANNON THE MOSELEYS SUED GM IN 1990 ARGUING THAT THE PLACEMENT OF THE FUEL TANK OUTSIDE THE FRAME OF SHANNON'S 1985 GMC PICKUP MADE IT VULNERABLE TO PUNCTURING DURING A CRASH GM SAYS THAT IT BELIEVES THE 1052 MILLION VERDICT IS INCORRECT AND THAT IT INTENDS TO FILE AN APPEAL LEGAL OBSERVERS NOTED THAT LARGE DAMAGE AWARDS SELDOM SURVIVE INTACT IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GM SHARES FELL 1125 TO 38 ALTHOUGH GM HAS BEEN INVOLVED IN SIX OTHER TRIALS INVOLVING ITS PICKUPS THE MOSELEY CASE HAS BEEN CLOSELY WATCHED THE TRIAL INVOLVED AN UNUSUAL DEFECTION OF A GM INHOUSE EXPERT WITNESS TO THE PLAINTIFF'S SIDE AND IT'S THE MOST RECENT DEVELOPMENT IN THE ESCALATING FIGHT OVER THE SAFETY OF SOME 47 MILLION 19731987 LARGE GM PICKUPS UNLIKE FORD MOTOR CO AND CHRYSLER CORP GM BUILT ITS PICKUPS WITH GAS TANKS MOUNTED OUTSIDE THE HEAVY FRAME RAILS CRITICS CHARGE THE TRUCKS SHOULD BE RECALLED BECAUSE THE GAS TANKS EXPLODE IN SIDE COLLISIONS GM SAYS ITS TRUCKS ARE SAFE THE VERDICT AGAINST GM WILL LIKELY MAKE IT EASIER FOR MORE PLAINTIFFS TO TAKE ON THE AUTO MAKER AND COULD INCREASE PRESSURE ON THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION TO RECALL THE PICKUPS IN FACT IN ARGUING FOR A PUNITIVE AWARD OF MORE THAN 100 MILLION JAMES BUTLER AN ATTORNEY FOR THE MOSELEYS SAID THE REASON WE ARE HERE IS TO FORCE A RECALL WITH NEARLY FIVE MILLION OF THE SIDESADDLE PICKUPS STILL ON THE ROAD THE COST OF EITHER A RECALL OR A FLOOD OF LITIGATION COULD BE ENORMOUS ESTIMATES RANGE FROM 500 MILLION TO MORE THAN 1 BILLION THE PUBLICITY SURROUNDING THE PICKUP CASE ALSO COULD HURT FUTURE SALES OF A KEY VEHICLE LARGE PICKUPS ARE GM'S BESTSELLING VEHICLE AND ONE OF ITS MOST PROFITABLE IN PART BECAUSE THEY ARE PROTECTED FROM FOREIGN COMPETITION BY A 25 TARIFF THE SIZE OF THE VERDICT SAID MARYANN KELLER AN ANALYST AT FURMAN SELZ CREATES A PUBLICRELATIONS NIGHTMARE FOR GM JUST THINK OF THE OWNERS OF THIS VEHICLE SHE SAID WHAT DOES IT MEAN TO THEM ARE THEY GOING TO BUY ANOTHER GENERAL MOTORS VEHICLE ARE THEY GOING TO BE APPREHENSIVE ABOUT DRIVING IT TOMORROW THE VERDICT ALSO PLACES ANOTHER HURDLE IN FRONT OF GM'S EFFORTS TO TURN AROUND ITS UNPROFITABLE NORTH AMERICAN OPERATIONS BY YEAR'S END ON WEDNESDAY GM LEARNED THAT ITS SHARE OF THE NORTH AMERICAN VEHICLE MARKET HAD DROPPED TO 33 IN JANUARY DOWN TWO POINTS FROM A YEAR EARLIER THE SAME DAY STANDARD & POOR'S CORP DOWNGRADED GM'S DEBT AND YANKED ITS TOPTIER COMMERCIAL PAPER RATING THE ENORMOUS SIZE OF THE PUNITIVE DAMAGES SPARKED COMPARISONS WITH THE NOTED FORD PINTO CASE WHICH WAS BROUGHT IN 1971 IN THAT CASE THE PLAINTIFF WAS ORIGINALLY AWARDED 125 MILLION IN PUNITIVE DAMAGES BUT THE AWARD WAS LATER CUT BY THE TRIAL JUDGE TO 35 MILLION THE TRACK RECORD IS EXTREMELY POOR IN COLLECTING THESE THINGS CAUTIONED MICHAEL RUSTAD PROFESSOR AT SUFFOLK UNIVERSITY LAW SCHOOL IN BOSTON AND COAUTHOR OF A STUDY EXAMINING 25 YEARS OF PUNITIVE DAMAGE VERDICTS IN PRODUCT LIABILITY CASES FROM 1965 TO 1990 GM HAS GONE TO GREAT EXPENSE DEFENDING ITS TRUCKS THIS WEEK THE AUTO MAKER FILED ALMOST 500 PAGES IN RESPONSE TO QUESTIONS FROM FEDERAL SAFETY REGULATORS INVESTIGATING THE SAFETY OF THE TRUCKS THE FILING COMES ON TOP OF 70000 PAGES OF DOCUMENTS GM SUBMITTED TO THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION LAST FALL IN A DECEMBER LETTER TO GM THE NHTSA QUESTIONED FOR THE FIRST TIME WHETHER GM SHOULD HAVE RECALLED THE VEHICLES IN 1979 WHEN IT ROUNDED OFF A CORNER OF THE CAB TO PREVENT IT FROM PUNCTURING THE FUEL TANKS IN A JAN 29 RESPONSE RELEASED YESTERDAY GM SAID IT DOES NOT CONDUCT A RECALL SIMPLY BECAUSE A PRODUCT IMPROVEMENT HAS BEEN MADE IN PRODUCTION IN THE ATLANTA CASE MR BUTLER THE MOSELEYS' ATTORNEY ARGUED THAT GM'S FUELTANK PLACEMENT AND DESIGN WAS FAULTY AND CAUSED MR MOSELEY TO BURN TO DEATH AFTER HIS PICKUP WAS STRUCK FROM THE SIDE BY ANOTHER VEHICLE ATTORNEYS FOR GM HOWEVER CONTENDED THAT MR MOSELEY DIED ALMOST INSTANTLY FROM THE IMPACT OF THE CRASH NOT FROM A FIRE THAT OCCURRED SHORTLY THEREAFTER THE GRISLY ISSUE OF WHETHER MR MOSELEY HAD EXPERIENCED PAIN AND SUFFERING BEFORE HE DIED WAS CENTRAL TO THE DISPUTE UNDER GEORGIA LAW PUNITIVE DAMAGES CAN BE AWARDED IN SUCH CASES ONLY IF A VICTIM'S PAIN AND SUFFERING CAN BE PROVEN IN CLOSING ARGUMENTS ON MONDAY MR BUTLER ARGUED THAT MR MOSELEY DID SURVIVE THE IMPACT OF THE CRASH BUT BURNED ALIVE BECAUSE OF A POORLY DESIGNED FUEL TANK BUT FRED BARTLIT A GM ATTORNEY HAMMERED AWAY AT THE THEME THAT PHYSICAL EVIDENCE PROVED MR MOSELEY DIDN'T SURVIVE THE CRASH TESTS SHOWED MR MOSELEY HAD NO SOOT IN HIS LUNGS FOR EXAMPLE SO HE COULDN'T HAVE BEEN BREATHING MR BARTLIT SAID AFTER THE TRIAL HOWEVER ONE JUROR SAID HIS COLLEAGUES WERE SWAYED IN THEIR DECISION TO AWARD PUNITIVE DAMAGES BY GM'S REPEATED REFUSAL TO OWN UP TO HAVING A PROBLEM WITH THE TRUCKS WE FELT THERE WAS EVIDENCE OF WANTON AND WILLFUL DISREGARD OF COMMON SENSE SAID JOHN DALE A 42YEAROLD VICE PRESIDENT FOR A DISTRIBUTION COMPANY IN GEORGIA HAD GM AT ANY TIME IN THE LAST EIGHT YEARS COME FOWARD AND SAID WE HAVE A PROBLEM' THAT WOULD HAVE GONE A LONG WAY TOWARD MITIGATING MY OPINION OF AWARDING PUNITIVE DAMAGES MR DALE EVEN CITED TESTIMONY DURING THE TRIAL BY ROBERT C STEMPEL GM'S FORMER CHAIRMAN WHO ACCORDING TO MR DALE GOT ON THE STAND AND SAID WE DON'T HAVE A PROBLEM' TO THE JURORS MR DALE SAID STEMPEL WAS GM IN ADDITION TO THE MOSELEY CASE THESE LAWSUITS HAVE GONE TO TRIAL INVOLVING 19731987 GM FULLSIZE PICKUP TRUCKS IN WHICH POSTCOLLISION FIRE OCCURRED 9302050001 930205 PACKWOOD INQUIRY TO OPERATE UNDER AMENDED RULES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE ETHICS COMMITTEE CONFRONTED WITH CHARGES OF SEXUAL HARASSMENT AGAINST SEN ROBERT PACKWOOD AMENDED ITS RULES TO SHIELD THE PRIVACY OF WITNESSES WHO FEAR BEING QUESTIONED ABOUT THEIR OWN SEXUAL HISTORY THE ACTION CAME AS THE COMMITTEE LEADERSHIP APPEARED TO BROADEN THE SCOPE OF ITS PRELIMINARY INQUIRY TO INCLUDE NOT ONLY CHARGES OF SEXUAL MISCONDUCT BUT ALSO ALLEGED ATTEMPTS BY MR PACKWOOD AND HIS STAFF TO INTIMIDATE AND DISCREDIT HIS ACCUSERS THE COMMITTEE'S LEGAL STAFF WILL BE EXPANDED BUT THE LEADERSHIP ANNOUNCED THAT IT WOULD RELY ON ITS OWN ATTORNEYS FOR THE PACKWOOD INQUIRY RATHER THAN HIRE OUTSIDE COUNSEL AS THE PANEL HAS DONE IN SEVERAL OTHER HIGHPROFILE CASES LAST NIGHT'S ANNOUNCEMENT WAS ISSUED JOINTLY BY COMMITTEE CHAIRMAN RICHARD BRYAN D NEV AND HIS REPUBLICAN COUNTERPART VICE CHAIRMAN MITCH MCCONNELL OF KENTUCKY WHO SAID THAT AS A GENERAL POLICY THE COMMITTEE WILL BE GUIDED BY THE FEDERAL RAPE SHIELD RULE IN ALL CASES OF SEXUAL MISCONDUCT THE AMENDED RULES WILL PROHIBIT THE CONSIDERATION OF THE SEXUAL HISTORY OF ANY WITNESS IN ACCORDANCE WITH FEDERAL RULES OF EVIDENCE EXCEPTIONS TO THE SHIELD RULE WOULD HAVE TO BE APPROVED BY THE FULL COMMITTEE MEETING IN CLOSED SESSION THIS PROTECTION IS SIGNIFICANT GIVEN RECENT STATEMENTS BY MR PACKWOOD SUGGESTING THAT HE MAY ADOPT A MORE AGGRESSIVE STANCE IN CONTESTING THE ACCUSATIONS AGAINST HIM AT A DECEMBER NEWS CONFERENCE IN WASHINGTON THE OREGON REPUBLICAN DESCRIBED HIS BEHAVIOR AS JUST PLAIN WRONG BUT IN INTERVIEWS IN HIS HOME STATE DURING THE PAST MONTH HE HAS RAISED THE PROSPECT OF QUESTIONING HIS WOMEN ACCUSERS ABOUT THEIR PERSONAL LIVES 9302050114 930121 THE FUTURE OF POLITICS THE COMING RESURRECTION OF THE GOP BY PATRICK J BUCHANAN GOP MAKES SWEEPING GAINS IN SENATE HOUSE/CLINTON SEEN AS VULNERABLE IN 1996 THAT SUCH A HEADLINE WILL GRACE THE FRONT PAGES IN NOVEMBER 1994 IS ALMOST ASSURED OFFYEAR ELECTIONS ARE TRADITIONALLY HARSH ON INCUMBENTS 1994 SHOULD BE ESPECIALLY SO FOR DEMOCRATS AS IN 1966 AND 1978 THEY CONTROL ALL THE CORRIDORS OF POWER AND HAVE NO ONE ELSE TO BLAME OF 34 SENATE SEATS AT RISK IN 1994 22 ARE HELD BY DEMOCRATS RECALL 1966 LED TO MR NIXON'S NEW MAJORITY AND 1978 POINTED TO THE REAGAN LANDSLIDES OF THE 1980S THE GOP BASE IS ROCK SOLID DESPITE THE SMALLEST TURNOUT FOR A PARTY NOMINEE SINCE ALF LANDON THE PARTY HELD ITS GROUND IN THE SENATE AND GAINED 10 SEATS IN THE HOUSE THE FUTURE IS NOW AS GEORGE ALLEN USED TO SAY FACING A 43 PRESIDENT WHO IS ALREADY CANCELING PROMISES AND CAPITULATING TO SPECIAL INTERESTS REPUBLICANS SHOULD BE PREPARING FOR BATTLE INSTEAD MANY REPUBLICAN LEADERS CAN BE FOUND LINED UP TO GO TO CONFESSION IN THE WASHINGTON POST BLESS ME FATHER FOR I HAVE SINNED I WAS NONINCLUSIVE' AND DIVISIVE' THREE TIMES ACCEPTING A FALSE MEDIA ANALYSIS OF WHY THEY LOST REPUBLICANS ARE ALREADY INDULGING IN THE POLITICS OF APPEASEMENT HENCE RON BROWN RAINMAKER FOR BABY DOC LAWYERLOBBYIST FOR THE EMPIRE OF THE SUN IS GIVEN A PASS WARREN RUDMAN'S REPUBLICAN MAJORITY COALITION WANTS ALL MORAL ISSUES OFF THE TABLE NOW JACK KEMP'S EMPOWER AMERICA IS REACHING OUT TO PROABORTION AND GAYRIGHTS REPUBLICANS WITH ONE HAND STIFFARMING THE CHRISTIAN RIGHT WITH THE OTHER IRVING KRISTOL WHO FIRST RAISED THE WHITE FLAG IN THE STRUGGLE AGAINST THE GREAT SOCIETY NOW WANTS IT RAISED IN THE CULTURE WARS I REGRET TO INFORM PAT BUCHANAN THAT THOSE WARS ARE OVER SAID PROFESSOR KRISTOL ON THIS PAGE THE LEFT HAS WON THIS IS THE COUNSEL OF DEFEATISM AND THE POLITICS OF DESPAIR PURSUED IT WILL LEAD TO IRRELEVANCY AND DEATH FOR THE GOP WHO WILL FOLLOW A PARTY THAT ABANDONS ITS PRINCIPLES PLATFORM AND MOST LOYAL FOLLOWERS AFTER A SINGLE STINGING DEFEAT WHO SHOULD WE CANNOT RAISE A WHITE FLAG IN THE CULTURAL WAR FOR THAT WAR IS ABOUT WHO WE ARE NOR CAN CONSERVATIVES BECOME CONSCIENTIOUS OBJECTORS BECAUSE CULTURE SHAPES POLITICS CULTURE IS THE HO CHI MINH TRAIL TO POWER SURRENDER THIS PROVINCE AND WE LOSE AMERICA REPUBLICANS ARE MISREADING THE ELECTION RETURNS IT WAS NOT THE TRADITIONALISTS WHO LOST THE BUSH PRESIDENCY THEY WERE IN THE LAST DITCH THEY GAVE MR BUSH HIS MARGIN OF VICTORY IN THE STATES HE WON TO WALK AWAY FROM THEM IS TO ABANDON MANY OF THE BEST AND BRAVEST OF OUR PEOPLE FOR WHAT TO GET IN WITH AN ESTABLISHMENT THAT CANNOT CONTAIN ITS JOY AT REPUBLICAN DEFEAT EVEN OUR NEW PRESIDENT KNOWS THE TUG OF TRADITIONAL VALUES IN THE SOUTH HE EMPHASIZED WELFARE REFORM AND THE DEATH PENALTY AND TODAY HE IS WARY OF HIS OWN PLEDGE TO OPEN UP WEST POINT AND THE MARINE BARRACKS TO GAY LIBERATION IF REPUBLICANS ABANDON TRADITIONAL VALUES IT IS NOT THE VALUES THAT WILL BE ABANDONED BUT THE PARTY FOR A NEW PARTY WITH THE WILL TO FIGHT GAY RIGHTS ACTIVISTS SEEK TO SUBSTITUTE FOR LAWS ROOTED IN JUDEOCHRISTIAN MORALITY LAWS ROOTED IN THE SECULAR HUMANIST BELIEF THAT ALL CONSENSUAL SEXUAL ACTS ARE MORALLY EQUAL THAT BELIEF IS ANTIBIBLICAL AND AMORAL TO WRITE IT INTO LAW IS TO CODIFY A LIE ALL CITIZENS ARE EQUAL IN THEIR CONSTITUTIONAL RIGHTS BUT NOT ALL IDEAS OR LIFESTYLES ARE EQUAL SOME ARE WRONG AND SOME ARE RIGHT WE CANNOT PERMIT THE ACOLYTES OF GAY RIGHTS TO IMPOSE THEIR VALUES ON OUR CHILDREN WE HAVE TO RESIST AS WE HAVE TO FIGHT ON FOR THE RIGHT TO LIFE OF THE UNBORN EVEN IF DEFEATS LIE AHEAD FOR IT IS IN STRUGGLE THAT WE DEFINE OURSELVES THAT WE CALL FORTH BY OUR CONVICTION AND COURAGE THE CONVERTS AND RECRUITS WHO WILL ONE DAY WIN THE BATTLES THAT WE COULD NOT THE GOVERNING COALITION OF THE 21ST CENTURY CAN YET BE A CENTERCONSERVATIVE COALITION IF ONLY WE WILL KEEP THE FAITH IN NOVEMBER THE BUSHPEROT VOTE HIT 57 BEFORE THE MEDIA REPAIR WORK BEGAN ON BILL AND HILLARY IN THE LATE SPRING THE BUSHPEROT VOTE WAS BUMPING UP AGAINST 70 IF THE GOP CAN RECAPTURE THE PEROT VOTE IT CAN DETERMINE THE FUTURE AND THE ESSENCE OF THE PEROT APPEAL IS ANTIWASHINGTON ANTIBIG GOVERNMENT POPULIST AND PATRIOTIC ALL THE THINGS WE USED TO BE WHAT MUST BE DONE AFTER 12 YEARS THE GOP MUST NOT ONLY CLAIM ITS SUCCESSES LONGEST PEACETIME EXPANSION IN HISTORY WINNING THE COLD WAR BUT CONCEDE ITS FAILURES THE BUREAUCRACY IS LARGER THE DEFICIT GREATER THE QUOTA MINDSET MORE EMBEDDED AND THE NATIONAL DEBT FOUR TIMES WHAT IT WAS IN 1981 THE CLEAN AIR ACT THE TAX HIKE THE CIVIL RIGHTS BILL ALL CAME DOWN WITH CRUSHING WEIGHT ON AN ECONOMY IN WHICH THE GOP FORTUNE WAS WHOLLY INVESTED WE IMPOSED ON SMALL BUSINESSES THE TAXES AND REGULATIONS THAT ATE UP THEIR PROFIT MARGINS AND SHUT DOWN THE GREAT AMERICAN JOBS MACHINE OF THE 1980S REPUBLICANS HELPED KILL THE GOOSE THAT LAID THEIR GOLDEN EGGS BEN HOOKS AND THE NAACP TO WHOM WE GAVE THE QUOTA BILL THE SIERRA CLUB FOR WHOM WE SAVED THE OWLS WHERE WERE THEY WHEN WE NEEDED THEM IN NOVEMBER '92 REPUBLICANS NEED TO FORGET ABOUT THE LOST LIMOUSINES TO GO BACK TO THEIR ROOTS BECOME AGAIN THE PARTY OF THE OUTSIDERS IT IS TIME THE PRODIGAL SON CAME HOME TO HIS FATHER'S HOUSE WHAT AMERICA NEEDS IS NOT A NEW THIRD PARTY BUT A FIGHTING SECOND PARTY THAT WILL CONFRONT THE LEFT NOT JUST ON CAPITAL GAINS BUT ALL ALONG A THOUSANDMILE FRONT THE MOVE INTO GOP LEADERSHIP RANKS OF REP DICK ARMEY R TEXAS AND REP TOM DELAY R TEX IS A FIRST SIGN OF THE RECOVERY OF A FIGHTING SPIRIT A SECOND WOULD BE THE ELECTION OF AN OUTSIDE MARSHAL AS PARTY CHAIR TO RIDE INTO TOWN WITH HIS GUNBELT ON SURELY THE GOP CAN NOW FIND COMMON GROUND IN ENDING WORLD BANK AND INTERNATIONAL MONETARY FUND LOANS TO FOREIGN COMPETITORS IN CUTTING TAX RATES ON INTEREST INCOME AND CAPITAL GAINS IN ADVOCATING JFKSTYLE CREDITS FOR PLANT AND EQUIPMENT IN PICKING UP THE MIDDLECLASS TAX CUT MR CLINTON HAS SO LATELY PUT DOWN INSTEAD OF A LEVEL PLAYING FIELD WHY NOT TILT THE FIELD IN FAVOR OF US BUSINESS AND INDUSTRY BY MAKING AMERICA THE MOST REWARDING EARNING AND INVESTMENT CLIMATE IN THE WESTERN INDUSTRIAL WORLD WHAT IS WRONG WITH USING ACCESS TO AMERICA'S IMMENSE MARKET TO FORCE ADVERSARY TRADERS TO OPEN UP TO OUR GOODS WHAT IS WRONG WITH PUTTING AMERICA FIRST RONALD REAGAN WHO NEGOTIATED THE FREE TRADE AGREEMENT WITH CANADA IMPOSED THE IMPORT QUOTAS ON JAPANESE CARS THAT BOUGHT FORD THE TIME TO BUILD A TAURUS THAT OUTSELLS THE HONDA BEFORE READING OUT OF THE GOP EVERYONE WHO WANTS TO DEFEND BOEING AGAINST THE FOURNATION ECSOCIALIST CARTEL THAT SUBSIDIZES AIRBUS RECALL THE ONLY TWO REPUBLICANS ON MOUNT RUSHMORE UNCLE ABE AND THE ROUGH RIDER DISBELIEVED IN THE FREE TRADE IDEOLOGY AND THE PARTY MUST STAND UP TO THE MODERN MONEYCHANGERS IN THE TEMPLE THE LOBBYISTS FOREIGN AND DOMESTICBUYING AND SELLING PUBLIC POLICY IN THE CORRIDORS OF POWER MORE THAN ENTERPRISE ZONES AS THE ONLY REMAINING SUPERPOWER OUR NATIONAL SECURITY IS NOWHERE IMPERILED BUT DOMESTIC SECURITY IS EVERYWHERE AT RISK NOT SINCE 1863 HAS THERE BEEN A RIOT AS BLOODY AND DESTRUCTIVE AS THE ONE IN LOS ANGELES OUR CITIES ARE NOWALK ZONES IN NEW YORK 2000 ARE MURDERED EACH YEAR WHILE WASHINGTON RETAINS THE TITLE OF MURDER CAPITAL OF THE WESTERN WORLD OURS HAS BECOME THE LAND OF THE DRIVEBY SHOOTING AND THE SERIAL KILLER OUR ANSWER TO THE BRUTALIZED PEOPLE OF KOREA TOWN AND CROWN HEIGHTS HAS GOT TO BE MORE THAN ENTERPRISE ZONES BEFORE WE LAUNCH CRUSADES FOR DEMOCRACY IN MYANMAR AND THE MAHGREB LET US FIRST SECURE FOR ALL AMERICANS THEIR CONSTITUTIONAL RIGHTS WHY DO WE NEED 150000 TROOPS IN BAVARIA TO DEFEND A BORDER THAT NO LONGER EXISTS WHEN OUR OWN BORDERS ARE WITNESS TO THE GREATEST OVERLAND INVASION IN HISTORY EVEN PRESIDENT CLINTON WHO IS BARRICADING HAITI SEEMS TO REALIZE THAT THIS NATION NEEDS A TIME OUT TO ASSIMILATE AND AMERICANIZE THE TENS OF MILLIONS WHO HAVE POURED IN IN RECENT DECADES ELSE BALKANIZATION OF THE REPUBLIC IS ASSURED REPUBLICANS NEED TO ASK THEMSELVES WHO ARE WE FOR WHOM DO WE SPEAK WE USED TO BE THE PARTY OF SMALL BUSINESS AND THE MIDDLE CLASS NOT OF BIG GOVERNMENT CONSERVATISM OF MERIT AND ABILITY NOT AFFIRMATIVE ACTION AND QUOTAS OF REAGANITE COURAGE NOT KRISTOLIAN SURRENDER ONCE WE BELIEVED THAT FREEDOM EMPOWERED PEOPLE NOT THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SITTING IN THE EAST ROOM AS PRESIDENT BUSH CONFERRED THE MEDAL OF FREEDOM ON RONALD REAGAN I FOUND IT WAS IMPOSSIBLE NOT TO FEEL A TOUCH OF SADNESS GEORGE BUSH IS THE LAST LEADER OF THE GREAT GENERATION THE YOUNG LIONS WHO CRUSHED FASCISM AND PERSEVERED IN THE 50 YEARS WAR WITH THE EMPIRE OF LENIN AND STALIN THE GIPPER WAS THE ONLY PRESIDENT IN A THIRD OF A CENTURY TO COMPLETE TWO TERMS AT THE END OF WHICH US MIGHT AND MORALE WERE RESTORED AND AMERICA COASTED TO VICTORY IN THE COLD WAR THE 1980S GAVE US SOME OF THE BEST TIMES AND GREATEST VICTORIES WE WILL EVER KNOW BUT THERE ARE NEW VICTORIES TO BE WON JUST OVER THE NEXT HILL SURSUM CORDA FELLOW REPUBLICANS LIFT UP YOUR HEARTS MR BUCHANAN WHO CHALLENGED PRESIDENT BUSH IN THE PRIMARIES IS COMPLETING A NEW BOOK AMERICA FIRST THE WAR FOR THE SOUL OF THE GOP AND RETURNING TO JOURNALISM SEE RELATED LETTERS LETTERS TO THE EDITOR PAT'S WAY IS SUICIDE FOR GOP WSJ FEB 5 1993 9301210060 9302040179 930204 SEARS IS TARGET OF HOLDER GROUP URGING CHAIRMAN TO GIVE UP ONE OF TWO TITLES BY SUSAN PULLIAM AND GREGORY A PATTERSON STAFF REPORTERS OF THE WALL STREET JOURNAL A SHAREHOLDER ACTIVIST GROUP SAID IT WILL LEAD AN EFFORT TO FORCE SEARS ROEBUCK & CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER EDWARD A BRENNAN TO GIVE UP ONE OF HIS TWO TITLES THE MOVE INTENSIFIES PRESSURE ON THE 59YEAROLD MR BRENNAN WHO ALREADY IS UNDER FIRE FOR THE DISAPPOINTING PERFORMANCE OF THE GIANT RETAILER AND FINANCIALSERVICES COMPANY IN RECENT YEARS THE NEXT TARGET IS SEARS DECLARED RALPH WHITWORTH PRESIDENT OF UNITED SHAREHOLDERS ASSOCIATION HE SAID THE GROUP WILL MAIL A LETTER NEXT MONTH TO THE COMPANY'S 5000 LARGEST SHAREHOLDERS URGING THEM TO VOTE FOR A PROPOSAL BARRING THE SAME PERSON FROM HOLDING BOTH POSITIONS OF CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER THE SHAREHOLDERS GROUP PLANS TO SUBMIT THE PROPOSAL TO SEARS FOR INCLUSION IN ITS PROXY MATERIALS THAT WILL BE SENT TO SHAREHOLDERS IN ADVANCE OF ITS ANNUAL MEETING IN APRIL IN CHICAGO A SEARS SPOKESMAN DECLINED TO COMMENT SAYING THE COMPANY HADN'T YET BEEN TOLD OF THE PLAN BY THE SHAREHOLDER GROUP THE SPOKESMAN SAID THE COMPANY WON'T COMMENT UNTIL AFTER ALL THE PROXY MATERIALS ARE FILED NEXT MONTH THE PROPOSAL REQUIRING TWO INDIVIDUALS TO OCCUPY THE TOP TWO RUNGS OF THE CORPORATE HIERARCHY IS ONE OF MANY BEING PUSHED BY SHAREHOLDER GROUPS FOR PROXY VOTES AT COMPANIES' ANNUAL MEETINGS THIS YEAR MANY OF THE PROPOSALS ARE DESIGNED TO INCREASE THE INDEPENDENCE OF BOARDS OF DIRECTORS AND TO GIVE SHAREHOLDERS BETTER REPRESENTATION IN CORPORATE BOARDROOMS IN RECENT MONTHS SHAREHOLDER GROUPS HAVE BEEN MEETING BEHIND THE SCENES WITH MANAGERS AND CORPORATE DIRECTORS ASKING THEM TO MAKE A HOST OF CHANGES DESIGNED TO IMPROVE THE COMPANIES' FINANCIAL PERFORMANCE THESE SHAREHOLDERS WHICH INCLUDE LARGE PUBLIC PENSION FUNDS SUCH AS CALIFORNIA'S HUGE PUBLICEMPLOYEE PENSION FUND KNOWN AS CALPERS AND SHAREHOLDER GROUPS HAVE CONTRIBUTED TO SHAKEUPS AT A NUMBER OF THE NATION'S LARGEST COMPANIES INCLUDING INTERNATIONAL BUSINESS MACHINES CORP GENERAL MOTORS CORP AND WESTINGHOUSE ELECTRIC CORP AS COMPANIES' ANNUAL MEETINGS DRAW NEAR HOWEVER THESE SHAREHOLDER GROUPS SAY THEY WILL DRAW THEIR ATTENTION TO PROXY PROPOSALS ESPECIALLY IN CASES WHERE BEHINDTHESCENES MEETINGS WITH EXECUTIVES HAVE PROVEN UNSUCCESSFUL MR WHITWORTH SAID AS ENVISIONED BY HIS GROUP THE SEARS CAMPAIGN WOULD MARK THE FIRST BROADSCALE USE OF A NEW SECURITIES AND EXCHANGE COMMISSION RULE THAT MAKES IT EASIER FOR SHAREHOLDERS TO COMMUNICATE WITH EACH OTHER UNDER THE OLD RULES SHAREHOLDERS WERE REQUIRED TO FILE A LENGTHY DOCUMENT WITH THE SEC WHEN COMMUNICATING WITH MORE THAN 10 SHAREHOLDERS THE NEW RULES REQUIRE A SHORTER FILING WITH THE SEC THIS WILL BE THE FIRST TIME THE NEW RULES HAVE BEEN TESTED FOR CORPORATE GOVERNANCE PURPOSES SAID MR WHITWORTH OF UNITED SHAREHOLDERS WE'LL USE THIS TO TRY AND BUILD A BANDWAGON EFFECT HE SAID THE RULES WERE FIRST USED LAST YEAR BY MONEY MANAGER MARIO GABELLI TO URGE SHAREHOLDERS OF CENTEL CORP TO VOTE AGAINST ITS MERGER WITH SPRINT CORP HOWEVER THAT MERGER WAS APPROVED SEARS HAS BEEN THE TARGET OF PRESSURE FROM SHAREHOLDER GROUPS FOR SEVERAL YEARS A SIMILAR PROPOSAL SPONSORED BY THE SHAREHOLDER GROUP AND THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM WAS APPROVED BY 27 OF SEARS'S SHAREHOLDERS AT LAST YEAR'S ANNUAL MEETING IF SUCCESSFUL THIS YEAR THE PROPOSAL WOULD BE A STRONG BLOW TO MR BRENNAN WHO HAS REPEATEDLY DISCOUNTED THE VALUE OF SHAREHOLDER ACTIVISM SINCE LAST YEAR'S MEETING THE COMPANY HAS MOVED TO APPEASE DISCONTENTED SHAREHOLDERS WITH A FLURRY OF CHANGES IN JUNE MR BRENNAN STEPPED DOWN FROM THE BOARD COMMITTEE THAT NOMINATES NEW DIRECTORS THE BOARD ALSO ISSUED A NEW RULE REQUIRING BOARD MEMBERS TO OWN 1000 SHARES OF SEARS STOCK IN RESPONSE TO A SHAREHOLDER PROPOSAL THAT CALLED FOR DIRECTORS TO OWN AT LEAST 2000 SEARS COMMON SHARES IN ADDITION MR BRENNAN STEPPED DOWN AS CHAIRMAN OF THE COMPANY'S MERCHANDISE GROUP WHICH OPERATES ITS STORES AND CATALOG AND HIRED AN OUTSIDER TO RUN THE COMPANY'S CORE BUSINESS BUT PERHAPS THE BIGGEST STEPS SEARS HAS TAKEN TO QUELL SHAREHOLDER UNREST AND SHORE UP ITS BALANCE SHEET CAME WITH ITS SEPTEMBER ANNOUNCEMENT OF ITS PLANS TO DIVEST ITSELF OF A LARGE PORTION OF ITS FINANCIALSERVICES BUSINESS UNDER THE PLAN SEARS WILL SPIN OFF ITS DEAN WITTER BROKERAGE UNIT SELL 20 OF ITS ALLSTATE INSURANCE UNIT AND SELL ALL OF ITS COLDWELL BANKER REALESTATE UNIT LAST WEEK THE COMPANY ALSO ANNOUNCED THAT IT WOULD CLOSE ITS FAMOUS BUT MONEYLOSING US CATALOG BUSINESS SHUTTER 113 UNPROFITABLE RETAIL DEPARTMENT STORES AND ELIMINATE 50000 JOBS SEARS HAS GONE SO FAR IN ATTEMPTING TO APPEASE SHAREHOLDERS THAT AT LEAST ONE BIG ACTIVIST HOLDER THAT LED PAST PROXY FIGHTS WITH THE COMPANY HAS WITHDRAWN A GOVERNANCE PROPOSAL LENS INC A WASHINGTON INVESTMENT CONCERN LAUNCHED BY ROBERT AG MONKS SAYS IT HAS WITHDRAWN A PROPOSAL THIS YEAR TO PUBLISH ITS COMMENTS IN THE PROXY MATERIALS THAT SEARS CIRCULATES TO ITS SHAREHOLDERS SUCH COMMENTS WHICH CONCERN BOARD CANDIDATES AND OTHER INITIATIVES THAT ARE VOTED ON AT THE ANNUAL MEETING WOULD HAVE COME IN ADDITION TO THE COMMENTS THAT SEARS TRADITIONALLY MAKES IN ITS PROXY STATEMENTS MR MONKS RAN UNSUCCESSFULLY FOR A SEAT ON THE SEARS BOARD IN 1991 AND LAST YEAR BACKED FIVE SHAREHOLDER PROPOSALS THIS YEAR LENS SAID IT WON'T LEAD A PROXY FIGHT BUT WOULD SUPPORT THE UNITED SHAREHOLDERS' INITIATIVE WHEN WE STARTED WITH SEARS MR BRENNAN HAD FIVE JOBS SAID NELL MINOW A LENS PRINCIPAL THREE OF THOSE JOBS ARE NOW FILLED BY OTHER PEOPLE SHE ADDED WE WOULD STILL LIKE TO SEE HIM IN ONLY ONE OF THOSE FIVE JOBS 9302040178 930204 TREASURY TRYING TO CUT DEBT COSTS LESSENS RELIANCE ON LONGTERM BONDS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY IN AN EFFORT TO FINANCE US DEBT AT A LOWER COST LESSENED SLIGHTLY ITS RELIANCE ON LONGTERM BONDS AND SAID IT WAS STUDYING WHETHER TO MAKE SIMILAR MOVES IN THE FUTURE THE DEPARTMENT SAID THAT NEXT WEEK IT WILL OFFER 925 BILLION IN 30YEAR BONDS WHICH IS 1 BILLION OR ABOUT 11 LESS THAN DURING THE LAST QUARTERLY AUCTION IT ALSO WILL SELL 1075 BILLION IN 10YEAR NOTES WHICH IS 500 MILLION LESS THAN LAST TIME AND IT WILL SELL THE SAME AMOUNT OF THREEYEAR NOTES OR 155 BILLION WORTH IN ALL THE TREASURY SAID IT WAS OFFERING 355 BILLION OF NOTES AND BONDS IN ITS MIDQUARTER REFUNDING TO RAISE ABOUT 10 BILLION OF NEW CASH AS WELL AS TO REDEEM 255 BILLION OF MATURING DEBT WE HAVE REVIEWED THE COMPOSITION AND SIZE OF THIS REFUNDING PACKAGE CAREFULLY AND WE HAVE CONCLUDED THAT TREASURY FINANCING COSTS CAN BE LOWERED AT THE MARGIN BY ALTERING THE MATURITY MIX SAID DEBORAH DANKER THE DEPARTMENT'S ACTING ASSISTANT SECRETARY FOR DOMESTIC FINANCE SHE ADDED THAT THE TREASURY WAS UNDERTAKING A THOROUGH REVIEW OF WHAT THE RIGHT MIX SHOULD BE THE DEPARTMENT HOPES TO HAVE THE STUDY COMPLETED BY THE NEXT QUARTERLY REFUNDING IN MAY THE BUSH TREASURY TOOK A SIMILARLY MODEST STEP A YEAR AGO REDUCING ITS RELIANCE ON 30YEAR BONDS BY 17 FROM ONE AUCTION TO THE NEXT PRESIDENT CLINTON'S ECONOMIC ADVISERS HAVE ARGUED THAT TRIMMING THE AMOUNT OF LONGTERM DEBT SOLD BY THE TREASURY WOULD SAVE TAXPAYERS' MONEY AND SPUR THE ECONOMY BY BRINGING DOWN LONGTERM INTEREST RATES AND WHILE THE BOND MARKET HAD BEEN SPECULATING ALL WEEK THAT SUCH A MOVE WAS POSSIBLE IT NONETHELESS CAME AS A SURPRISE TO SOME THAT'S BECAUSE IN A TELEVISION INTERVIEW TAPED LAST FRIDAY DEPUTY TREASURY SECRETARY ROGER ALTMAN SAID THAT THE DEPARTMENT'S EXAMINATION OF THE ISSUE HAD JUST BEEN BEGUN AT A HEARING ON CAPITOL HILL YESTERDAY CONGRESSIONAL BUDGET OFFICE DIRECTOR ROBERT REISCHAUER SAID THAT SCALING BACK ON THE AMOUNT OF 30YEAR AND 10YEAR INSTRUMENTS COULD TRANSLATE INTO SAVINGS OF 300 MILLION TO 400 MILLION IN THE FIRST YEAR GROWING TO AS MUCH AS 4 BILLION IN ABOUT SIX YEARS GIVEN THE EXPECTED STABILITY IN INTEREST RATES HOWEVER HE SAID THE MOVE PROBABLY WON'T BE AS EFFECTIVE AS IF IT HAD BEEN UNDERTAKEN A DECADE AGO AT THE SAME TIME MR REISCHAUER WARNED THE HOUSE BUDGET COMMITTEE THAT THE GOVERNMENT COULD BE HAMMERED IF IT BORROWED PREDOMINANTLY SHORTTERM SECURITIES AND THERE WAS THEN A SHARP RISE IN SHORTTERM INTEREST RATES THERE'S THE QUESTION OF HOW MUCH RISK DO YOU WANT TO EXPOSE YOURSELVES TO HE SAID THE CBO IS SET TO ISSUE A REPORT ON THIS SUBJECT WITHIN THE NEXT COUPLE OF MONTHS AT A NEWS BRIEFING YESTERDAY MS DANKER SAID THAT BASED ON ITS LATEST ESTIMATES THE TREASURY EXPECTS TO HIT THE 4145 TRILLION DEBT CEILING BY THE END OF MARCH AT THAT POINT CONGRESS WILL NEED TO RAISE THE LIMIT AND MS DANKER SAID THAT THE TREASURY WAS WORKING WITH LAWMAKERS SO WE WON'T HAVE ANY DISRUPTION IN THE FINANCIAL MARKETS THE REFUNDING WILL CONSIST OF 155 BILLION OF THREEYEAR NOTES DUE FEB 15 1996 TO BE SOLD TUESDAY IN MINIMUM DENOMINATIONS OF 5000 1075 BILLION OF 10YEAR NOTES DUE FEB 15 2003 TO BE AUCTIONED WEDNESDAY IN MINIMUM DENOMINATIONS OF 1000 AND 925 BILLION IN 30YEAR BONDS MATURING ON FEB 15 2023 TO BE SOLD NEXT THURSDAY IN MINIMUM DENOMINATIONS OF 1000 THE CUSIP NUMBERS ARE 912827J60 FOR THE THREEYEAR NOTES 912827J78 FOR THE 10YEAR NOTES AND 912810EP9 FOR THE 30YEAR BONDS NONCOMPETITIVE TENDERS FOR THE NOTES AND BONDS MUST BE RECEIVED BY NOON EST ON THE DAY OF THE AUCTION AT FEDERAL RESERVE BANKS OR BRANCHES 9302040177 930204 ALLIEDSIGNAL POSTS 20 GAIN IN PROFIT FOR FOURTH PERIOD RAISES ITS DIVIDEND FOURTHQUARTER PROFIT ROSE 20 TO 138 MILLION OR 98 CENTS A SHARE AND DIRECTORS RAISED THE QUARTERLY DIVIDEND TO 29 CENTS FROM 25 CENTS A SHARE THE COMPANY BASED IN MORRIS TOWNSHIP NJ SAID ALL OF ITS BUSINESSES POSTED IMPROVED PROFITS DESPITE WEAK MARKETS IN THE US AND OVERSEAS LAWRENCE A BOSSIDY CHAIRMAN SAID THAT THE COMPANY MADE RAPID PROGRESS IN MEETING ITS FINANCIAL GOALS AND THAT HE WAS OPTIMISTIC FOR 1993 HE ESTIMATED THAT THE COMPANY WHICH MAKES AUTOMOTIVE PARTS AEROSPACE PRODUCTS AND ENGINEERED MATERIALS WILL EARN 450 TO 475 A SHARE THIS YEAR COMPARED WITH AN ADJUSTED 402 A SHARE IN 1992 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ALLIEDSIGNAL GAINED 2875 TO 61875 ALLIEDSIGNAL'S FOURTHQUARTER NET INCOME INCLUDED CHARGES REFLECTING TWO ACCOUNTING CHANGES THESE CHANGES RELATE TO POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE COSTS AND TAXES THE COMPANY ALSO TOOK A CHARGE OF 368 MILLION OR 161 A SHARE IN THE QUARTER TO REFLECT THE COST OF ACCELERATING A COMPANYWIDE RESTRUCTURING THE AMOUNT IS IN ADDITION TO THE 880 MILLION RESTRUCTURING CHARGE ANNOUNCED IN 1991 THE 368 MILLION CHARGE WAS LARGELY OFFSET BY A GAIN OF 357 MILLION FROM THE SALE OF ITS STAKE IN UNION TEXAS PETROLEUM HOLDINGS INC WITHOUT THE ACCOUNTING CHANGES AND OTHER UNUSUAL ITEMS THE COMPANY'S FOURTHQUARTER PROFIT WAS 153 MILLION OR 109 A SHARE IN THE 1991 PERIOD THE COMPANY EARNED 115 MILLION OR 83 CENTS A SHARE SALES ROSE SLIGHTLY TO 305 BILLION FROM 3 BILLION FOR THE YEAR THE CUMULATIVE EFFECT OF THE ACCOUNTING CHANGES TOTALING 125 BILLION RESULTED IN A NET LOSS OF 712 MILLION OR 505 A SHARE COMPARED WITH A LOSS OF 273 MILLION OR 2 A SHARE IN 1991 EXCLUDING THE ACCOUNTING CHANGES AND CHARGES RELATED TO RESTRUCTURING IN BOTH YEARS ALLIEDSIGNAL'S 1992 PROFIT WAS 566 MILLION OR 402 A SHARE COMPARED WITH 342 MILLION OR 251 A SHARE IN 1991 SALES ROSE 18 TO 1204 BILLION FROM 1183 BILLION THE COMPANY SAID THE INCREASED DIVIDEND IS PAYABLE MARCH 10 TO STOCK OF RECORD FEB 19 9302040176 930204 TECHNOLOGY & HEALTH ROCHESTER TEL FILES PROPOSAL TO OPEN UP LOCAL PHONE MARKET BEFORE STATE DOES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL ROCHESTER TELEPHONE CORP FILED A GROUNDBREAKING PLAN WITH NEW YORK STATE REGULATORS THAT WOULD LET COMPETITORS INTO THE LOCAL TELEPHONE SERVICE BUSINESS JUST AS CUSTOMERS NOW CHOOSE THEIR OWN LONGDISTANCE TELEPHONE COMPANY PHONE CUSTOMERS IN THE ROCHESTER NY AREA WOULD BE ABLE TO SELECT THEIR LOCAL PHONE SERVICE PROVIDER UNDER THE PLAN ROCHESTER TEL WOULD SPLIT ITS LOCAL PHONE OPERATING COMPANY INTO TWO UNITS ONE WOULD OWN THE NETWORK AND SELL DIAL TONE SWITCHING SIGNALING AND OTHER NETWORK SERVICES AT WHOLESALE PRICES TO A VARIETY OF COMPANIES THESE COMPANIES LONG DISTANCE CARRIERS LARGE BUSINESS CUSTOMERS AND OTHER COMPANIES THAT OFFER TELEPHONE SERVICES COULD RESELL THE SERVICES TO THEIR CUSTOMERS THE OTHER UNIT WOULD BE A TELECOMMUNICATIONS SERVICES COMPANY THAT WOULD RESELL NETWORK SERVICES AND TELECOMMUNICATIONS EQUIPMENT TO RESIDENTIAL AND BUSINESS CUSTOMERS IN ADDITION A NEW HOLDING COMPANY WOULD BE FORMED AS A PARENT FOR ALL ROCHESTER TEL UNITS A SPOKESWOMAN SAID THAT WITH COMPETITION FROM ALTERNATIVE PHONE COMPANIES LOOMING RATHER THAN HAVING A PLAN FOR COMPETITION IMPOSED WE WOULD LIKE TO PROPOSE ONE THAT WOULD ALLOW US TO COMPETE ON A LEVEL PLAYING FIELD FOR CUSTOMERS LOCAL SERVICE RATES WOULD BE FROZEN UNTIL 1995 AFTER THAT RATE INCREASES WOULD BE TIED TO INFLATION RESIDENTIAL FLATRATE SERVICE IS CURRENTLY PRICED AT 1313 A MONTH THE SPOKESWOMAN SAID THE PLAN AND REGULATORS' DELIBERATIONS COULD SET A MODEL FOR OTHER STATES AND PERHAPS THE FEDERAL GOVERNMENT AS THE LOCAL PHONE INDUSTRY SHIFTS FROM MONOPOLY TO A COMPETITIVE MARKET IN RECENT YEARS REGULATORS HAVE BEEN EXAMINING WAYS TO OPEN UP THE LOCAL PHONE NETWORKS AS THE INDUSTRY MOVES TOWARD COMPETITION ROCHESTER TEL'S PLAN OFFERS AN ALTERNATIVE THAT COULD EASE THE TRANSITION FOR THE PHONE COMPANIES IT WOULD ENTICE COMPETITORS TO BUY SERVICES OFF OUR NETWORK RATHER THAN BUILD THEIR OWN NETWORKS A COMPANY SPOKESWOMAN SAID COMPETITORS OF COURSE COULD STILL BUILD THEIR OWN FACILITIES AND SUPPLEMENT THEM WITH SERVICES PURCHASED FROM THE ROCHESTER TEL NETWORK UNIT THE COMPANY EXPECTS NEW YORK REGULATORS TO TAKE A YEAR OR MORE TO STUDY AND APPROVE THE PLAN WHICH IS LIKELY TO BE REVISED AS IT MOVES THROUGH THE REGULATORY PROCESS WITH 330000 RESIDENTIAL SUBSCRIBERS AND 30000 BUSINESS SUBSCRIBERS IN THE ROCHESTER AREA ROCHESTER TEL IS THE LARGEST INDEPENDENT PHONE COMPANY IN NEW YORK STATE THE COMPANY WHICH HAD 1992 REVENUE OF 804 MILLION AND NET INCOME OF 694 MILLION ALSO OWNS 38 INDEPENDENT PHONE COMPANIES IN 15 STATES THE COMPANY'S NETWORK IN UPSTATE NEW YORK IS ONE OF THE MOST UPTODATE IT IS 99 DIGITAL AND USES AN ADVANCED SIGNALING SYSTEM IN ALL OF ITS EXCHANGES THAT SPEEDS CALLS THROUGH THE NETWORK AND LETS THE COMPANY OFFER SUCH ADVANCED SERVICES AS CALLER IDENTIFICATION 9302040175 930204 MOTOROLA SIGNS RUSSIAN FIRM FOR LAUNCHES BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SCHAUMBURG ILL MOTOROLA INC SAID IT SIGNED A CONTRACT TO HAVE A RUSSIAN AEROSPACE COMPANY LAUNCH 21 OF THE 73 SATELLITES THAT WILL FORM THE US COMPANY'S 337 BILLION IRIDIUM GLOBAL COMMUNICATIONS NETWORK ALLOWING VOICE PAGING FAX AND DATA MESSAGES TO FLY AROUND THE WORLD WITHOUT THE NEED FOR LANDBASED RELAYS AT THE SAME TIME THE RUSSIAN COMPANY KHRUNICHEV ENTERPRISE PLANS TO INVEST 40 MILLION IN IRIDIUM DETAILS WEREN'T DISCLOSED BUT MOTOROLA SAID THE AGREEMENT WASN'T A BARTER THEY'RE INVESTING IN THE PROGRAM SAID A SPOKESMAN WE'RE BUYING FROM THEM KHRUNICHEV IN WHAT INDUSTRY WATCHERS SAID IS THE FIRST COMMERCIAL VENTURE BETWEEN A US COMPANY AND A RUSSIAN AEROSPACE FIRM IS SCHEDULED TO LAUNCH THE 21 SATELLITES ON THREE PROTON ROCKETS EACH CARRYING SEVEN SATELLITES MCDONNELL DOUGLAS CORP IS NEGOTIATING TO LAUNCH THE REST ON DELTA 2 CLASS ROCKETS WHICH CAN PUT FIVE SATELLITES INTO ORBIT AT ONCE FORMER PRESIDENT BUSH APPROVED THE BASIC SHARING OF TECHNOLOGY INVOLVED IN THE AGREEMENT BUT THE CLINTON ADMINISTRATION WOULD NEED TO ISSUE FURTHER AUTHORIZATION INCLUDING MOST IMPORTANTLY EXPORT LICENSES FOR THE SATELLITES TO BE LAUNCHED FROM RUSSIA OR ANOTHER COUNTRY THE AEROSPACE INDUSTRY INCLUDING MCDONNELL DOUGLAS COMPLAINED IN JUNE WHEN THE BUSH ADMINISTRATION APPROVED THE LAUNCH BY INMARSAT A 64NATION CONSORTIUM OF THE FIRST WESTERN SATELLITE ABOARD A RUSSIAN ROCKET YESTERDAY MCDONNELL DOUGLAS HAD NO COMMENT THE 36 MILLION AWARD FOR THAT LAUNCH OF AN INMARSAT3 SATELLITE BUILT BY GE ASTRO SPACE OF NEW JERSEY ALSO RAISED THE IRE OF THENVICE PRESIDENTIAL CANDIDATE ALBERT GORE VISITING GODDARD SPACE FLIGHT CENTER IN GREENBELT MD IN OCTOBER HE CALLED THE AEROSPACE INDUSTRY THE NATION'S LAST SURVIVING CROWN JEWEL AND SAID IT WAS NEXT ON AN INTERNATIONAL HIT LIST PREDATORY PRICING BY COMPETITORS FROM NONMARKET ECONOMIES HE SAID IS THE VERY SAME ECONOMIC WEAPON THAT FOREIGN COUNTRIES EMPLOYED IN THE 1980S TO TARGET AND DESTROY THE AMERICAN MANUFACTURING BASE THE IRIDIUM PROJECT SCHEDULED TO BEGIN OPERATING IN 1998 REQUIRES VARIOUS GOVERNMENT APPROVALS AND A DEFINITIVE FINANCING AGREEMENT MOTOROLA SAID KHRUNICHEV WHICH LAUNCHED THE SALYUT AND MIR STATIONS HAS RUSSIAN APPROVAL FOR THE 40 MILLION INVESTMENT IN IRIDIUM IT'S A MARKET PRICE ROCKET SAID THE IRIDIUM SPOKESMAN THERE ISN'T NECESSARILY PRICE SAVINGS WITH KHRUNICHEV HE SAID THE COMPANY WENT LOOKING FOR A SECOND LAUNCHVEHICLE SUPPLIER TO REDUCE THE CHANCE OF TECHNICAL DELAYS 9302040174 930204 WHO'S NEWS CONTINENTAL HEALTH AFFILIATES INC CONTINENTAL HEALTH AFFILIATES INC ENGLEWOOD CLIFFS NJ THIS PROVIDER OF HEALTH CARE SERVICES SAID MICHAEL PENNESSI WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF ITS INFUTECH INC INFUSION THERAPY UNIT MR PENNESSI 43 YEARS OLD HAD BEEN VICE PRESIDENT OF SALES AND MARKETING FOR ROCHE PROFESSIONAL SERVICE CENTERS A HOME CARE AND HOME INFUSION THERAPY UNIT OF HOFFMANNLA ROCHE INC IN NUTLEY NJ HE SUCCEEDS JACK ROSEN 46 WHO WILL CONTINUE AS CHIEF EXECUTIVE OFFICER OF THE COMPANY 9302040173 930204 WHO'S NEWS SPECTRANETICS CORP SPECTRANETICS CORP COLORADO SPRINGS COLO C WILLIAM ZADEL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CIBA CORNING DIAGNOSTICS CORP WAS ADDED TO THE BOARD OF THIS MEDICAL EQUIPMENT MAKER INCREASING THE NUMBER OF DIRECTORS TO SIX 9302040172 930204 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN WILLIAM H TRACHSEL WAS ELECTED CORPORATE SECRETARY OF THIS MAKER OF AIRCRAFT ENGINES AIR CONDITIONERS HELICOPTERS AUTOMOTIVE PRODUCTS AND OTHER AEROSPACE AND DEFENSE RELATED PRODUCTS MR TRACHSEL 49 WILL CONTINUE AS VICE PRESIDENT AND GENERAL COUNSEL HE SUCCEEDS LAWRENCE R PURTELL 45 WHO BECOMES VICE PRESIDENT GENERAL COUNSEL AND SECRETARY AT THE CARRIER CORP UNIT UNITED TECHNOLOGIES CORP SAID WILLIAM H TRACHSEL IS A CORPORATE SECRETARY VICE PRESIDENT AND DEPUTY GENERAL COUNSEL AT THE COMPANY A WHO'S NEWS ITEM YESTERDAY INCORRECTLY REFERRED TO MR TRACHSEL AS THE COMPANY'S GENERAL COUNSEL 9302040171 930204 WHO'S NEWS ISIS PHARMACEUTICALS INC ISIS PHARMACEUTICALS INC CARLSBAD CALIF DANIEL L KISNER EXECUTIVE VICE PRESIDENT OF THIS DEVELOPER OF PHARMACEUTICALS WAS NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER DR KISNER 46 YEARS OLD WILL HAVE RESPONSIBILITY FOR BUSINESS DEVELOPMENT REGULATORY AFFAIRS STRATEGIC MARKETING PRODUCT DEVELOPMENT LEGAL AFFAIRS ADMINISTRATION AND HUMAN RESOURCES 9302040170 930204 WHO'S NEWS DESTEC ENERGY INC DESTEC ENERGY INC HOUSTON KEYS A CURRY EXECUTIVE VICE PRESIDENT HAS BEEN NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER OF THIS POWER PRODUCER AS CHIEF OPERATING OFFICER MR CURRY 57 YEARS OLD SUCCEEDS CHARLES F GOFF 52 MR GOFF PRESIDENT OF DESTEC BECAME CHIEF EXECUTIVE OFFICER LAST YEAR 9302040169 930204 WHO'S NEWS DAEWOO CORP DAEWOO CORP SEOUL SOUTH KOREA KIM OKNYUN 48 YEARS OLD WAS NAMED PRESIDENT OF DAEWOO INTERNATIONAL AMERICA CORP THE NORTH AMERICAN TRADING SUBSIDIARY OF THIS TRADING CONSTRUCTION AND FINANCIAL SERVICES COMPANY HE SUCCEEDS YOO KIBUM 49 WHO HAS BEEN NAMED PRESIDENT OF DAEWOO'S TRADING DIVISION AND IS RETURNING TO SEOUL MR KIM WAS MOST RECENTLY THE CHIEF SECRETARY TO KIM WOOCHOONG CHAIRMAN AND FOUNDER OF DAEWOO GROUP THE KOREAN INDUSTRIAL GROUP OF WHICH DAEWOO CORP IS A PART 9302040168 930204 TECHNOLOGY SPRINT AND ALCATEL SLATE JOINT VENTURE FOR TELEPHONE GEAR A WALL STREET JOURNAL NEWS ROUNDUP SPRINT CORP AND FRANCE'S ALCATELALSTHOM AGREED TO COMBINE THEIR DATASWITCHING EQUIPMENT UNITS INTO A NEW COMPANY AND TO MARKET THE EQUIPMENT TO CORPORATIONS AND PUBLIC TELEPHONE COMPANIES WORLDWIDE THE MOVE BY ALCATEL THE WORLD'S LARGEST TELECOMMUNICATIONS EQUIPMENT SUPPLIER AND SPRINT THE THIRDLARGEST US LONGDISTANCE TELEPHONE COMPANY UNDERSCORES THE INCREASING COMPLEXITY AND COSTS CONFRONTING SUPPLIERS OF ADVANCED NETWORKING GEAR BOTH COMPANIES EXPRESSED A NEED TO SHARE THE MARKETING AND DEVELOPMENT OF FUTURE DATA PACKET SWITCHES THAT WILL SOMEDAY FORM THE HUBS OF INCREASINGLY ELABORATE PUBLIC AND CORPORATE MULTIMEDIA NETWORKS NEITHER COMPANY WOULD DISCLOSE THE VALUE OF THE TRANSACTION OR FINANCIAL INFORMATION ABOUT THEIR RESPECTIVE UNITS WHOSE RIVALS INCLUDE GERMANY'S SIEMENS AG AMERICAN TELEPHONE & TELEGRAPH CO AND JAPAN'S FUJITSU LTD THE JOINT VENTURE ALCATEL DATA NETWORKS WILL BE 51OWNED BY ALCATEL AND 49 BY SPRINT AND WILL HAVE ABOUT 1200 EMPLOYEES HEADQUARTERS WILL BE AT ALCATEL'S BASE IN PARIS WITH THE US BASE AT SPRINT'S FACILITY IN RESTON VA SPRINT'S EQUIPMENT LINE AND MARKETING SHOULD INCREASE OUR SIZE AND COMPETITIVENESS IN A KEY GROWING MARKET SEGMENT SAID JOZEF CORNU ALCATEL'S EXECUTIVE VICE PRESIDENT TECHNICAL OPERATIONS AND BUSINESS DEVELOPMENT SPRINT IS SEEKING CONTINUING ACCESS TO ADVANCED TECHNOLOGIES THROUGH ALCATEL SAID PAOLO GUIDI PRESIDENT OF SPRINT INTERNATIONAL WHICH OPERATES SPRINT'S OVERSEAS SERVICES BUSINESSES DATA NETWORKS AND THE EQUIPMENT THESE USE ALCATEL WHICH MOSTLY SELLS ITS DATA SWITCHES IN FRANCE ALSO WILL GAIN ACCESS TO SPRINT'S 50 US AND 150 OVERSEAS CUSTOMERS ACCORDING TO MR GUIDI AND THE TWO COMPANIES WILL ADAPT THEIR LINE TO WORK WITH THE NEXTGENERATION ASYNCHRONOUS TRANSFER MODE SWITCHES THESE ATM DEVICES WILL HANDLE MULTIMEDIA NETWORKS CARRYING VOICE DATA AND VIDEO TRAFFIC 9302040167 930204 WHO'S NEWS DOW CHEMICAL CO DOW CHEMICAL CO MIDLAND MICH YVES BOBILLIER 52YEAROLD EXECUTIVE VICE PRESIDENT OF THE CHEMICAL CONCERN'S DOW EUROPE SUBSIDIARY WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER OF DOW EUROPE EFFECTIVE JULY 1 ANDREW J BUTLER 58 WILL STEP DOWN AS PRESIDENT ON APRIL 1 1994 9302040166 930204 WHO'S NEWS CURTISSWRIGHT CORP CURTISSWRIGHT CORP LYNDHURST NJ ROBERT A BOSI 37 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF FINANCE AT THIS MAKER OF PRECISION PARTS AND SYSTEMS AND PROVIDER OF ENGINEERED SERVICES HE HAD BEEN TREASURER 9302040165 930204 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK STEVEN S FADEM 42 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT BUSINESS AFFAIRS AT VIACOM ENTERTAINMENT GROUP A UNIT OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN MR FADEM COMES TO VIACOM FROM MULTIMEDIA ENTERTAINMENT INC WHERE HE HAD BEEN VICE PRESIDENT BUSINESS AFFAIRS AND GENERAL COUNSEL 9302040164 930204 TECHNOLOGY JAPANESE SCIENTISTS IMPROVE TECHNOLOGY FOR LAPTOP SCREENS TOKYO BY MIXING A LIGHTSENSITIVE CHEMICAL INTO THE LIQUIDCRYSTAL SOUP OF FLATSCREEN DISPLAYS JAPANESE SCIENTISTS HAVE ADVANCED A TECHNOLOGY THAT MAY LEAD TO SHARPER MORE EFFICIENT SCREENS FOR TELEVISIONS LAPTOP COMPUTERS AND A VARIETY OF OTHER ELECTRONIC DEVICES A TEAM OF MATERIAL SCIENTISTS AT THE TOKYO INSTITUTE OF TECHNOLOGY LED BY TOMIKI IKEDA PLANS TO ANNOUNCE THE TECHNOLOGY TODAY THE GROUP SAYS IT HAS DEVELOPED FLAT SCREENS OF LIQUID CRYSTALS THAT CAN BE SWITCHED QUICKLY ON AND OFF BY A LASER INSTEAD OF BY ELECTRICITY IF COMMERCIALIZED THE TECHNIQUE COULD BE USED TO MAKE LOWPOWER DISPLAYS THAT WOULD PROLONG THE BATTERY LIFE OF LAPTOP COMPUTERS AND ONE DAY MIGHT EVEN MAKE POSSIBLE TELEVISION SCREENS THAT COULD BE ROLLED UP LIKE A POSTER WHEN NOT IN USE DR IKEDA REPORTS HIS RESULTS IN TODAY'S ISSUE OF THE SCIENTIFIC JOURNAL NATURE FLATPANEL DISPLAYS OR LIQUIDCRYSTAL DISPLAYS KNOWN AS LCDS RELY ON A CLOUDY LIQUID OF LONG THIN MOLECULES THAT ALL LINE UP IN THE SAME DIRECTION WHEN SUBJECTED TO AN ELECTRIC FIELD SANDWICH SUCH A LIQUID BETWEEN TWO PLATES OF GLASS AND THE MOLECULES WILL ACT AS A WINDOW BLIND SLANTING ONE WAY TO TRANSMIT LIGHT AND THE OTHER WAY TO BLOCK IT WHEN DIFFERENT VOLTAGES ARE APPLIED BY DIVIDING THIS LIQUIDCRYSTAL SANDWICH INTO THOUSANDS OF TINY CELLS OR PIXELS AND ATTACHING AN ELECTRODE TO EACH CELL ENGINEERS HAVE PRODUCED THE FLATPANEL DISPLAYS FOUND IN LAPTOP COMPUTERS TODAY'S LCDS HOWEVER CONSUME A LOT OF POWER AS A RESULT LABS AROUND THE WORLD HAVE PURSUED A TECHNOLOGY USING FERROELECTRIC LIQUID CRYSTALS WHICH STAY LINED UP EVEN WHEN THE VOLTAGE IS TURNED OFF CANON INC SAYS IT PLANS TO OFFER A FERROELECTRIC COMPUTER DISPLAY SCREEN LATER THIS YEAR HOWEVER SUCH A SCREEN WOULD STILL REQUIRE TOO MUCH POWER FOR MOST PORTABLE ELECTRONIC DEVICES ENTER DR IKEDA AND HIS TEAM WHO HIT UPON THE IDEA OF ADDING A LIGHTSENSITIVE CHEMICAL INTO THE LIQUIDCRYSTAL SANDWICH THEIR CHOSEN CHEMICAL AZOBENZENE CHANGES SHAPE WHEN HIT WITH A LASER BEAM WITHIN THE LIQUID CRYSTALS SHAPESHIFTING AZOBENZENE MOLECULES CAN ACT AS A SWITCH BY FORCING THE LONGER LIGHTBLOCKING MOLECULES TO LINE UP IN THE OPPOSITE DIRECTION 9302040163 930204 WHO'S NEWS PARK ELECTROCHEMICAL CORP PARK ELECTROCHEMICAL CORP LAKE SUCCESS NY BRIAN E SHORE 41 YEARS OLD WAS NAMED A VICE PRESIDENT IN THE BUSINESS OPERATIONS AREA OF THIS MAKER OF ADVANCED ELECTRONIC CIRCUITS AND COMPOSITE MATERIALS MR SHORE WHO BECOMES ONE OF TWO CORPORATE VICE PRESIDENTS HAD BEEN CORPORATE LEGAL COUNSEL 9302040162 930204 WHO'S NEWS SUPERCUTS INC SUPERCUTS INC SAN RAFAEL CALIF WILLIAM N STIRLEN 54 YEARS OLD WAS NAMED A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE HAIRCUTTING CHAIN HE HAD BEEN FINANCIAL CHIEF AT TRIMBLE NAVIGATION LTD IN SUNNYVALE CALIF 9302040161 930204 NEW DEAL FOR SHAREHOLDERS BY LILLI GORDON A DRAMATIC AND UNPRECEDENTED SERIES OF EVENTS SHOOK THE WORLD OF CORPORATE GOVERNANCE LAST WEEK AT THREE OF AMERICA'S MAJOR CORPORATIONS IBM WESTINGHOUSE AND AMERICAN EXPRESS THE CHIEF EXECUTIVE OFFICER DEPARTED AT THE BEHEST OF A NEWLY EMBOLDENED BOARD THE IMPETUS FOR THE BOARD'S ACTION WAS INCREASED ACTIVISM AND PRESSURE FROM MAJOR INSTITUTIONAL INVESTORS THE COMPANIES IN QUESTION HAD ESCAPED THE PRESSURES OF THE TAKEOVER ERA DUE TO THEIR SIZE AND COMPLEXITY NOW THEY HAD BEEN MADE TO CHANGE BY QUIET NEGOTIATION AND PUBLIC DEBATE WHAT ARE THE IMPLICATIONS OF THIS DIFFERENCE WHAT SHOULD INSTITUTIONS DO WITH THEIR NEWFOUND POWER AND HOW SHOULD CORPORATIONS RESPOND A RECENT STUDY THAT I HAVE COMPLETED FOR THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM CALPERS THE NATION'S LARGEST ACTIVE PUBLIC PENSION FUND SUGGESTS THAT AN ANSWER LIES IN SOMETHING CALLED RELATIONSHIP INVESTING RELATIONSHIP INVESTING REFERS TO A SYSTEM OF LONGTERM RELATIONSHIPS BETWEEN CORPORATIONS AND MANAGEMENT UNDER SUCH A SYSTEM INVESTORS WOULD BECOME EXPERT IN THE WORKINGS OF THEIR PORTFOLIO COMPANIES AND PROVIDE FEEDBACK ABOUT CORPORATE POLICY BUT THEY WOULD ALSO FORSWEAR CONTENTIOUS CHALLENGES AND SUDDEN GRABS FOR CONTROL IN THIS WAY INVESTORS COULD SEND IMPORTANT SIGNALS TO CORPORATIONS WHEN MAJOR MISTAKES ARE ABOUT TO BE MADE OR WHEN POLICIES AND PERFORMANCE ARE SEEN TO DECLINE AT THE SAME TIME BOARDS WOULD BE IN TOUCH WITH THE MARKET INDEED BY KEEPING BOARDS ENGAGED AND ENERGIZED RELATIONSHIP INVESTING CAN PREVENT SUCH DRAMATIC CORPORATE TRANSITIONS AS THOSE WE SAW LAST WEEK THE CONCEPT IS NOT NEW THROUGHOUT AMERICAN HISTORY INFORMED SHAREHOLDERS HAVE BOUGHT LARGE EQUITY STAKES AND BROUGHT PRESSURE TO BEAR FOR CORPORATE CHANGE TO GOOD EFFECT A SURVEY OF THE ACADEMIC LITERATURE SHOWS THAT VARIOUS FORMS OF ACTIVE INVESTING HAVE ADDED SIGNIFICANT VALUE TO INVESTMENTS AND THAT INVESTORS GENERATE VALUE AS A CONSEQUENCE OF THEIR EFFORTS BUT IT IS ALSO EVIDENT THAT SOME FORMS OF ACTIVE INVESTING HAVE NOT WORKED SO WELL IN THE 1980S FOR EXAMPLE MANY INVESTORS FOCUSED ON TRANSFERRING THE CONTROL OF UNDERPERFORMING CORPORATIONS FROM ONE GROUP TO ANOTHER OR ON HOSTILE ACQUISITION BY A NEW MANAGEMENT TEAM THESE STRATEGIES EVEN WHEN THEY YIELDED FINANCIAL VALUE CREATED LARGE RISKS AND IMMENSE POLITICAL FALLOUT OFTEN BY ALIENATING EMPLOYEE GROUPS AND OTHER CORPORATE CONSTITUENTS RELATIONSHIP INVESTING IS IN PART A REACTION TO THE CONTENTION RISKINESS AND CONTROVERSY OF 1980SSTYLE INVESTING IT ALSO SEEKS TO INCREASE VALUE OF COURSE BUT IT FOCUSES ON INCREMENTAL RATHER THAN WHOLESALE CHANGE ON DIALOGUE RATHER THAN THREATS ON FRIENDLY PARTNERSHIPS RATHER THAN HOSTILE TAKEOVERS PERHAPS MOST IMPORTANT IT FOCUSES ON THE LONGTERM RATHER THAN THE SHORTTERM WITH VARIOUS PROTECTIONS AND GUARANTEES IT ENSURES THAT INVESTORS ARE NOT PURSING PRIVATE AGENDAS AND SEEKING SIMPLY TO HOLD UP THE CORPORATION FOR THEIR OWN GAIN RELATIONSHIP INVESTING COMES IN TWO FORMS NEGOTIATED AND NONNEGOTIATED IN THE SECOND OF THESE THE ACTIVE INVESTOR IS EXPECTED TO OFFER SUGGESTIONS ABOUT CORPORATE POLICY AS A LARGE OUTSIDE SHAREHOLDER BUT DOES SO WITHOUT HAVING MADE AN EXPLICIT AGREEMENT WITH MANAGEMENT NONNEGOTIATED INVESTMENTS COULD INVOLVE FOR EXAMPLE A PUBLIC PENSION FUND THAT HAS HELD A STOCK IN ITS EQUITY PORTFOLIO SEEN THE VALUE DECLINE OVER TIME AND RESOLVED TO TAKE ACTION IN NEGOTIATED INVESTMENTS ON THE OTHER HAND INVESTORS EXPLICITLY AGREE WITH MANAGEMENT TO CONTRIBUTE TO THE FORMULATION OF CORPORATE POLICY THE INVESTMENTS OF WARREN BUFFETT OFFER PERHAPS THE BEST EXAMPLE OTHER EXAMPLES INCLUDE LAURENCE TISCH'S INVESTMENT AT CBS AND TREFOIL'S INVESTMENT AT LA GEAR THESE TWO KINDS OF INVESTING HAVE YIELDED STRIKING RESULTS IN THE NONNEGOTIATED CATEGORY SOME TELLING INITIATIVES HAVE BEEN LAUNCHED BY OUTSIDE DIRECTORS AT ALLEGHENY FOR EXAMPLE OUTSIDE DIRECTOR AND STOCKHOLDER ALLAN KIRBY OPPOSED A MANAGEMENT PROPOSAL THAT WOULD HAVE LIMITED STOCKHOLDER VOTING RIGHTS IN THE ELECTION OF DIRECTORS AT DEL WEBB AN INITIATIVE WAS LAUNCHED BY INVESTOR AND OUTSIDE DIRECTOR JAMES COTTER WHO SOUGHT EXPANDED REPRESENTATION ON THE COMPANY'S BOARD AND THE REMOVAL OF TAKEOVER PROTECTIONS BOTH INITIATIVES WERE SUCCESSFUL AND THEY WERE FOLLOWED BY SUBSTANTIAL IMPROVEMENTS IN LONGTERM PERFORMANCE THERE ARE OTHER EXAMPLES AT CLEVELANDCLIFFS MONEY MANAGER JULIAN ROBERTSON PROPOSED FIVE NEW DIRECTORS FOR THE BOARD AT HONEYWELL CALPERS THE PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM AND NORTH AMERICAN PARTNERS OPPOSED NEW TAKEOVER PROTECTIONS AT USX CARL ICAHN PROPOSED SPLITTING UP THE COMPANY AND AT SENSORMATIC VALUE EQUITY ASSOCIATES URGED THE REPEAL OF TAKEOVER PROTECTIONS THESE AND THE OTHER NONNEGOTIATED INVESTOR ACTIONS HAVE YIELDED A PHENOMENAL POSITIVE RETURN FOR SHAREHOLDERS AVERAGING ABOUT 30 PERCENTAGE POINTS ABOVE THE STANDARD & POOR'S 500 OVER A TWOYEAR PERIOD THEY INCREASE A COMPANY'S VALUE IT APPEARS BECAUSE THEY ENERGIZE THE BOARD MANAGEMENT AND OTHER INVESTORS TO EXAMINE CORPORATE POLICY AND TO CHANGE IT WHEN CHANGE IS NEEDED NEGOTIATED INVESTMENTS HAVE LOWER AVERAGE RETURNS BUT HIGH RETURNS ARE POSSIBLE AND APPEAR TO BE DRIVEN BY THE EXPERTISE OF THE INDIVIDUAL INVESTOR AT COMPANIES WHERE MR BUFFETT HAS AMASSED A STAKE AND BEEN GIVEN BOARD REPRESENTATION COMMON SHAREHOLDERS HAVE ENJOYED AVERAGE TOTAL RETURNS WELL ABOVE THE S&P 500 FOR EXAMPLE OVER THE THREE YEARS FOLLOWING MR BUFFETT'S FIRST INVESTMENT THE STOCK RETURNS OF COCACOLA AND GILLETTE EXCEEDED THE S&P 500 BY MORE THAN 100 PERCENTAGE POINTS NEGOTIATED INVESTMENTS CARRY THE ADDED ADVANTAGE OF BEING FRIENDLY AND INVOLVING A DIRECT PARTNERSHIP WITH MANAGEMENT ONE NEED NOT LOOK FURTHER THAN TO THE ROLE PLAYED BY MR BUFFETT AT SALOMON IN THE AFTERMATH OF THE TREASURY SCANDAL MR BUFFETT'S DECISIVE ACTIONS AS INTERIM CHAIRMAN ARE WIDELY CREDITED WITH SAVING THE INVESTMENT FIRM FROM POSSIBLE DEMISE EVENTS AT SALOMON ARE A VIVID ILLUSTRATION OF RELATIONSHIP INVESTING AT ITS BEST NEGOTIATED INVESTMENTS AVOID NOT ONLY THE POLITICAL BACKLASH OF UNFRIENDLY ACTIONS BUT ALSO THE LARGE COSTS THAT OFTEN RESULT WHEN NONNEGOTIATED INVESTMENTS TURN CONTENTIOUS MY STUDY FOR CALPERS OFFERS BROAD EVIDENCE THAT ACTIVE INVESTING CAN BE GOOD FOR COMPANIES AND THEIR SHAREHOLDERS EVEN WHEN IT IS LOWKEY FRIENDLY AND AIMED AT CONSTRUCTIVE INCREMENTAL CHANGES IN CORPORATE POLICY THE COMPANIES IN LAST WEEK'S TURMOIL OFFER AN INSTRUCTIVE COUNTEREXAMPLE THEY GOT BADLY OFFTRACK PRECISELY BECAUSE THEIR BOARDS AND MANAGERS WERE OUT OF TOUCH WITH THE MARKET IN THE END THERE WAS ONLY ONE THING TO DO IN RESPONSE TO SHAREHOLDER PRESSURE CHANGE MANAGEMENT AND TRY AGAIN A BETTER APPROACH WOULD HAVE BEEN TO ASSUME THAT MARKET CONCERN REFLECTS A REAL PROBLEM WITH THE COMPANY A SIGNAL TO BE RESPONDED TO THIS IS PRECISELY WHAT RELATIONSHIP INVESTING ALLOWS FOR IN THE 1980S THERE WAS LITTLE CHANCE FOR SCENARIO MANAGERS AND THE BOARD TO GET REAL DIRECT FEEDBACK THROUGH THE MARKET WITHOUT RISKING A CHANGE IN CONTROL OR A THREAT TO THE CORPORATION BUT IF LONGTERM INSTITUTIONAL INVESTORS AND OTHER ACTIVE MARKET PLAYERS COMMIT THEMSELVES TO A POLICY THAT CENTERS ON PROVIDING FEEDBACK AND ESCHEWING BROADER THREATS TO CONTROL THERE IS THE REAL PROSPECT THAT TIMELY SIGNALS CAN BE SENT TO THE BOARDS OF COMPANIES LIKE IBM AMERICAN EXPRESS AND WESTINGHOUSE AND THAT THOSE BOARDS CAN RESPOND IN THE RIGHT WAY SUCH A COMMITMENT WOULD MEAN AMONG MUCH ELSE THAT MISTAKES COULD BE CAUGHT AS THEY ARE MADE NOT FIVE YEARS DOWN THE ROAD WHEN IT IS TOO LATE TO SAVE CAREERS MONEY AND JOBS WHAT IS NEEDED IS NO MORE THAN A CHANGE IN ATTITUDES AND PRACTICES AMONG MAJOR INVESTORS AND CORPORATIONS MS GORDON IS PRESIDENT OF GORDON GROUP A NEWTON MASSBASED CORPORATE GOVERNANCE ADVISORY FIRM 9302040159 930204 INTERNATIONAL FOKKER NV SHARES PLUMMET ON REPORT THAT IT IS LOOKING FOR BACKUP FUNDS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHARES IN DUTCH AIRCRAFT MAKER FOKKER NV PLUMMETED 24 ON REPORTS THAT THE COMPANY IS LOOKING FOR BACKUP FUNDS TOTALING ONE BILLION GUILDERS 5415 MILLION IN CASE A PLANNED STAKE PURCHASE BY DEUTSCHE AEROSPACE AG FALLS THROUGH COMING A DAY AFTER DUTCH TRUCK MAKER DAF NV SOUGHT COURT PROTECTION FROM ITS CREDITORS THE REPORTS TRIGGERED FEARS THAT THE GOVERNMENT MIGHT SHUN REQUESTS FROM FOKKER AS WELL AND WITH CONCERN GROWING THAT THE DEAL REACHED IN OCTOBER WITH DEUTSCHE AEROSPACE MAY COLLAPSE SOME BROKERS BEGAN QUESTIONING THE AIRCRAFT MAKER'S FUTURE THE REPORTS WHICH FIRST APPEARED IN THE DUTCH MEDIA TUESDAY EVENING SAID FOKKER IS TALKING WITH THE QUASIGOVERNMENTAL NATIONAL INVESTMENT BANK ABOUT THE LOAN A FOKKER SPOKESMAN CONFIRMED THAT A SEARCH FOR BACKUP FUNDS IS UNDER WAY BUT DECLINED TO COMMENT DIRECTLY ON WHO THE COMPANY IS TALKING TO OR HOW MUCH ADDITIONAL FUNDING IT IS SEEKING OUR BOARD TAKES ITS OWN RESPONSIBILITY AND IS LOOKING FOR FINANCIAL SOURCES FOR FOKKER THE SPOKESMAN SAID OFFICIALS FOR THE BANK COULDN'T BE REACHED FOR COMMENT YESTERDAY ON THE AMSTERDAM STOCK EXCHANGE FOKKER SHARES DROPPED TO 1020 GUILDERS FROM 1350 GUILDERS FOKKER WHICH IS 318 STATEOWNED APPARENTLY WANTS TO HAVE FALLBACK PLANS IF ONGOING TALKS BETWEEN THE GOVERNMENT AND DEUTSCHE AEROSPACE OVER THE GERMAN COMPANY'S PLANS TO BUY A 51 STAKE IN THE AIRCRAFT MAKER COLLAPSE DEUTSCHE AEROSPACE ORIGINALLY AGREED TO PAY 37 GUILDERS A SHARE ABOUT 800 MILLION MARKS 4875 MILLION FOR THE PLANNED FOKKER STAKE PURCHASE THE DEAL CALLS FOR THE GERMAN COMPANY TO BUY THE STATE'S 318 STAKE PLUS AN ISSUE OF NEW SHARES SINCE SIGNING THE DEAL DEUTSCHE AEROSPACE HAS BEEN CONDUCTING DUE DILIGENCE BUT THAT HAS REPORTEDLY BEEN SLOWED DOWN BY GOVERNMENT REQUESTS FOR ADDITIONAL GUARANTEES THAT FUTURE AIRCRAFT PRODUCTION REMAIN IN THE NETHERLANDS WE STILL WANT THE DEAL AND ARE WORKING HARD TO MAKE IT POSSIBLE ON AN ECONOMICALLY VIABLE BASIS A DEUTSCHE AEROSPACE SPOKESMAN SAID HE WOULDN'T COMMENT FURTHER ON WHY THE CURRENT DEAL MAY NOT BE ECONOMICALLY VIABLE THE CAPITAL FOKKER WOULD RECEIVE FROM THE DEUTSCHE AEROSPACE DEAL WOULD GO TOWARD THE DEVELOPMENT OF TWO NEW JETLINERS AN UNDERTAKING THAT NEEDS SIGNIFICANT NEW FINANCIAL SOURCES TO PROCEED 9302040158 930204 WHO'S NEWS EMCON EMCON SAN MATEO CALIF JAMES M FELKER 53 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE APRIL 1 AT THIS ENGINEERING AND CONSULTING FIRM HE SUCCEEDS TED BRIGGS WHO REMAINS CHAIRMAN 9302040157 930204 CREDIT RATINGS IES INDUSTRIES INC NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THE 438 MILLION IN LONGTERM SECURITIES OF TWO UNITS OF THIS UTILITY HOLDING COMPANY THE RATING CONCERN SAID THE MARKDOWN OF SECURITIES ISSUED BY IES'S IOWA ELECTRIC LIGHT & POWER UNIT WAS PROMPTED BY THE DETERIORATION OF ITS COMPETITIVE POSITION AND FINANCIAL PROFILE AS A RESULT OF ITS HIGH RATES HEAVY RELIANCE ON A COSTLY NUCLEAR POWER PLANT AND WHAT MOODY'S CALLED IOWA ELECTRIC'S LIMITED OPPORTUNITIES FOR REGULATORY RELIEF IN MARKING DOWN THE DEBT OF IES'S IOWA SOUTHERN UTILITIES SUBSIDIARY MOODY'S CITED THE UNIT'S EXPECTED NEED FOR HEAVY CONSTRUCTION OUTLAYS IN COMING YEARS THE RATING CONCERN ALSO SAID THAT A RECENT INTERNAL IES REORGANIZATION WHICH PLACED THE TWO SUBSIDIARIES' GENERATING AND TRANSMITTING FACILITIES UNDER COMMON MANAGEMENT WILL PROVIDE SAVINGS FROM OPERATING EFFICIENCIES BUT WILL ALSO COMPROMISE THE UNIT'S CURRENT FINANCIAL ISOLATION FROM THE LESS FISCALLY ROBUST IOWA ELECTRIC IOWA ELECTRIC'S FIRST MORTGAGE BONDS WERE DOWNGRADED TO SINGLEA2 FROM SINGLEA1 ITS SECURED POLLUTION CONTROL BONDS TO SINGLEA2 FROM SINGLEA1 AND ITS UNSECURED POLLUTION CONTROL BONDS TO SINGLEA3 FROM SINGLEA2 FOR IOWA SOUTHERN MOODY'S LOWERED ITS RATING ON FIRST MORTGAGE BONDS TO SINGLEA1 FROM DOUBLEA3 AND ITS SECURED POLLUTION CONTROL BONDS TO SINGLEA1 FROM DOUBLEA3 THE PRIME1 RATING ON THE UNITS' SHORTTERM DEBT WASN'T CHANGED IN CEDAR RAPIDS IOWA AN IES SPOKESWOMAN SAID WE DID ANTICIPATE THERE WOULD BE A DOWNGRADE THIS DOES BRING THE MOODY'S RATING IN LINE WITHOTHER RATINGS SERVICES 9302040156 930204 WHO'S NEWS HANDY & HARMAN HANDY & HARMAN NEW YORK HERCULES P SOTOS 59 YEARS OLD VICE CHAIRMAN OF PLAYTEX FAMILY PRODUCTS CORP STAMFORD CONN WAS ELECTED A DIRECTOR OF THIS PRECIOUS METALS COMPANY FILLING A VACANCY 9302040155 930204 WHO'S NEWS CARDINAL DISTRIBUTION INC CARDINAL DISTRIBUTION INC DUBLIN OHIO JOHN C KANE 53 YEARS OLD HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PHARMACEUTICAL AND MEDICAL SUPPLIER THE POSITION HAD BEEN VACANT SINCE 1986 MR KANE PREVIOUSLY SERVED AS PRESIDENT OF THE ROSS LABORATORIES DIVISION OF ABBOTT LABORATORIES A WORLDWIDE PHARMACEUTICAL AND HEALTH CARE PRODUCTS MANUFACTURER HE JOINED ABBOTT IN 1974 9302040154 930204 PEPPERAND SALT BE RETRIEVED INSTEAD OF STORED ALL THE FLAKES I'VE MET AFTERDINNER MINT WHAT'S NEEDED TO PAY THE CHECK 9302040153 930204 WHO'S NEWS DESTEC ENERGY INC DESTEC ENERGY INC HOUSTON KEYS A CURRY EXECUTIVE VICE PRESIDENT HAS BEEN NAMED TO THE ADDITIONAL POST OF CHIEF OPERATING OFFICER OF THIS POWER PRODUCER AS CHIEF OPERATING OFFICER MR CURRY 57 YEARS OLD SUCCEEDS CHARLES F GOFF 52 MR GOFF PRESIDENT OF DESTEC BECAME CHIEF EXECUTIVE OFFICER LAST YEAR 9302040152 930204 RUSSIAN GRAIN CRISIS FLARES UP AS BANK PRESSES US FOR MISSED LOAN PAYMENTS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE RUSSIAN GRAIN CRISIS TOOK A TURN FOR THE WORSE CASTING A PALL OVER THE US GRAIN MARKET AND THREATENING TO SQUEEZE THE AGRICULTURE DEPARTMENT BUDGET THE NEW YORK BRANCH OF FRENCHBASED BANQUE INDOSUEZ FILED THE FIRST CLAIM AGAINST THE US GOVERNMENT FOR GRAIN LOAN PAYMENTS MISSED BY RUSSIA UNDER A PROGRAM DESIGNED TO BOOST US FARM EXPORTS THE AGRICULTURE DEPARTMENT IS OBLIGATED TO REPAY THE BANK IF RUSSIA CANNOT THE FRENCH BANK IS SEEKING ABOUT 350000 FOR INTEREST PAYMENTS MOSCOW HAS MISSED SINCE JAN 14 ON 53 MILLION IN USGUARANTEED LOANS GOVERNMENT OFFICIALS SAID YESTERDAY THEY EXPECT A WAVE OF CLAIMS OVER THE NEXT FEW WEEKS AS LENDERS DECIDE THE RUSSIAN CREDIT CRUNCH WON'T EASE ANYTIME SOON SINCE NOVEMBER RUSSIA HAS MISSED 2588 MILLION IN PAYMENTS FOR USGUARANTEED FOOD LOANS THE DEFAULTS ARE BALLOONING BY ROUGHLY 50 MILLION A WEEK THE US GOVERNMENT'S POTENTIAL EXPOSURE IS ENORMOUS IF RUSSIA CANNOT REPAY THE GRAIN LOANS THE AGRICULTURE DEPARTMENT IS OBLIGATED TO MAKE GOOD ON THE 42 BILLION OF UNPAID THREEYEAR LOANS THAT RUSSIA AND THE FORMER SOVIET UNION ARRANGED TO IMPORT US FARM COMMODITIES MUCH OF THE LOANS DON'T HAVE TO BE PAID OFF FOR A FEW YEARS WE'VE GOT A REAL PROBLEM THERE SAID AGRICULTURE SECRETARY MIKE ESPY DURING A HOUSE AGRICULTURE COMMITTEE HEARING ADDING THAT HE IS WORRIED ABOUT THE INTEGRITY OF THE POPULAR GUARANTEED CREDIT PROGRAM AND PLANS TO MEET WITH PRESIDENT CLINTON WE'RE GOING TO MOVE WITH ALL DELIBERATE SPEED TO ADDRESS THE CRISIS HE SAID WESTERN CREDITORS HAVE DEBATED FOR MONTHS ABOUT HOW TO RESCHEDULE RUSSIA'S TOWERING FOREIGN DEBT SO THAT MOSCOW CAN GET OUT OF DEFAULT BUT THE NEGOTIATIONS HAVE STUMBLED LATELY OVER A DISAGREEMENT BETWEEN RUSSIA AND UKRAINE ABOUT HOW TO DIVIDE BOTH THE DEBTS AND ASSETS OF THE FORMER SOVIET UNION IT'S FAR FROM CLEAR HOW MUCH THE CLAIMS MIGHT COST US TAXPAYERS SOME BANKS DON'T PLAN TO FILE CLAIMS BECAUSE THEY'RE STILL OPTIMISTIC ABOUT WORKING OUT A DEAL WITH THE RUSSIANS ALTHOUGH IT IS TAKING FAR LONGER THAN THEY EXPECTED AND THE AGRICULTURE DEPARTMENT WOULD ATTEMPT TO RECOVER ANY MONEY IT PAYS BY DUNNING MOSCOW BUT THE LATEST TWIST IN THIS DRAWN OUT CREDIT CRISIS HAS BROAD IMPLICATIONS FOR THE US FARM ECONOMY AND THE BUDGET RUSSIA HASN'T BOUGHT A SIGNIFICANT AMOUNT OF US GRAIN SINCE NOVEMBER WHEN THE DEFAULTS FORCED THE AGRICULTURE DEPARTMENT TO SUSPEND IT FROM THE CREDIT GUARANTEE PROGRAM A WAVE OF BANK CLAIMS WOULD SEND A SIGNAL TO GRAIN TRADERS THAT RUSSIA PROBABLY WON'T REEMERGE AS A MAJOR BUYER OF US FARM COMMODITIES UNTIL AT LEAST EARLY SUMMER THIS PROBLEM ISN'T GOING TO GO AWAY QUICKLY SAID DANIEL W BASSE DIRECTOR OF MARKET RESEARCH AT AGRESOURCE CO SUCH A LONG ABSENCE BY RUSSIA FROM THE GRAIN MARKETS WOULD PROBABLY KEEP A LID ON GRAIN PRICES ANALYSTS SAID US WHEAT PRICES ROSE SLIGHTLY YESTERDAY BECAUSE MR ESPY'S COMMENTS SPARKED SPECULATION THAT THE AGRICULTURE DEPARTMENT IS MULLING SOME UNUSUAL WAYS TO RESTART US EXPORTS TO RUSSIA SUCH AS BARTER OR DIRECT LOANS IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE WHEAT CONTRACT FOR MARCH DELIVERY ROSE TWO CENTS A BUSHEL TO SETTLE AT 37525 A BUSHEL BUT US WHEAT PRICES ARE ABOUT 19 BELOW A YEAR AGO AT LEAST IN PART BECAUSE RUSSIA'S SUSPENSION FROM THE GUARANTEE PROGRAM HAS BLOCKED IT FROM RECEIVING ABOUT 400 MILLION IN CREDIT SINCE NOVEMBER THE FORMER SOVIET UNION USED TO BUY ABOUT 20 OF US WHEAT EXPORTS WEAK GRAIN PRICES DIRECTLY INFLATE THE COST OF THE AGRICULTURE DEPARTMENT'S FARM INCOME SUPPORT PROGRAMS SOME ECONOMISTS ARE PREDICTING THAT GOVERNMENT PAYMENTS TO FARMERS MIGHT SWELL TO THEIR HIGHEST LEVEL SINCE THE FARM DEBT CRISIS OF THE MID1980S TERRY FRANCL SENIOR ECONOMIST AT THE AMERICAN FARM BUREAU FEDERATION IS PREDICTING THAT DEPARTMENT OUTLAYS MIGHT HIT 171 BILLION IN FISCAL 1993 COMPARED WITH 97 BILLION IN FISCAL 1992 FARM LOBBYISTS ARE WORRIED THAT SUCH A BIG JUMP IN EXPENDITURES WOULD MAKE SOME PROGRAMS VULNERABLE TO BUDGET CUTS THE CREDIT GUARANTEE PROGRAM FOR EXAMPLE HAS BEEN UNDER FIRE SINCE THE RECENT DEFAULT BY IRAQ FORCED THE AGRICULTURE DEPARTMENT TO PAY 12 BILLION IN CLAIMS ROSE GUTFELD CONTRIBUTED TO THIS ARTICLE 9302040151 930204 WHO'S NEWS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO GERALD J BUTTERS 49 YEARS OLD WAS NAMED PRESIDENT OF NORTHERN TELECOM INC THE US UNIT OF THIS TELECOMMUNICATIONS EQUIPMENT SUPPLIER MR BUTTERS SUCCEEDS ROY MERRILLS 58 WHO HAD HELD THE POSITION SINCE 1988 MR BUTTERS HAS BEEN APPOINTED CHAIRMAN OF NORTHERN TELECOM INC AND A SENIOR VICE PRESIDENT OF NORTHERN TELECOM LTD SEPARATELY ANGELA EL CASTLES 42 WAS NAMED VICE PRESIDENT AND GENERAL AUDITOR OF NORTHERN TELECOM LTD MS CASTLES WHO HAD BEEN FINANCE DIRECTOR AT NORTHERN TELECOM EUROPE SUCCEEDS PETER CURRIE 42 WHO RESIGNED LAST SEPTEMBER TO JOIN ANOTHER COMPANY NORTHERN TELECOM LTD SAID ROY MERRILLS HAS BEEN APPOINTED CHAIRMAN OF NORTHERN TELECOM INC AND A SENIOR VICE PRESIDENT OF NORTHERN TELECOM LTD A WHO'S NEWS ITEM YESTERDAY INCORRECTLY SAID GERALD J BUTTERS HAD BEEN APPOINTED TO THOSE POSITIONS MR BUTTERS IS PRESIDENT OF NORTHERN TELECOM INC THE US UNIT OF NORTHERN TELECOM LTD TORONTO 9302040150 930204 KLUGE PLANS TO BUY CHOCK FULL O'NUTS PEANUT SUBSIDIARY JIMBO'S JUMBOS INC INSPIRES US'S SECONDRICHEST MAN TO SHELL OUT 333 MILLION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN KLUGE THE SECOND RICHEST PERSON IN THE US IS WILLING TO WORK FOR PEANUTS A PARTNERSHIP CONTROLLED BY THE BILLIONAIRE SAID IT AGREED IN PRINCIPLE TO ACQUIRE THE STOCK OUTSTANDING OF JIMBO'S JUMBOS INC EDENTON NC THE PEANUT SUBSIDIARY OF CHOCK FULL O'NUTS CORP FOR ABOUT 333 MILLION JIMBO'S SHARES SOARED 28 ON THE NEWS MR KLUGE CREDITED BY FORBES MAGAZINE AS HAVING A 59 BILLION FORTUNE DIDN'T INDICATE WHY HE WAS WILLING TO SHELL OUT A FEW MILLION FOR THE PEANUTPROCESSING BUSINESS HOWEVER HE DOES HAVE EXTENSIVE LANDHOLDINGS IN VIRGINIA IN ADDITION TO ANOTHER PEANUT VENTURE OF AN UNDISCLOSED NATURE ACCORDING TO A SPOKESWOMAN FURTHERMORE HE DOES LIKE PEANUTS SHE SAID THE AGREEMENT WAS GOOD NEWS FOR JIMBO'S SHAREHOLDERS THE STOCK TRADED OVER THE COUNTER WITH THE SYMBOL PNUT WAS QUOTED AT 625 UP 1375 IN AFTERNOON TRADING YESTERDAY JIMBO'S JUMBOS THE NAME IS A COMBINATION OF THE FOUNDER JIM WOOD AND JUMBO A GRADE OF PEANUT WAS ACQUIRED FOR 31 MILLION BY CHOCK FULL IN 1988 IN THE YEAR ENDED JULY 31 NET INCOME WAS 22 MILLION OR 37 CENTS A SHARE ON REVENUE OF 55 MILLION THE COMPANY WENT PUBLIC IN LATE 1991 AT 6 A SHARE WHEN CHOCK FULL SOLD 15 MILLION SHARES RETAINING A 73 INTEREST CHOCK FULL CHAIRMAN AND CHIEF EXECUTIVE JOSEPH BRESLIN SAID THAT THE PEANUT BUSINESS DIDN'T FIT WITH ITS BUSINESS WHICH IS MAINLY COFFEE MARKETING THEY'VE BEEN SAYING FOR SOME TIME THAT THEY WERE LOOKING FOR AN EXIT STRATEGY FOR JIMBO'S JUMBOS BECAUSE THERE'S NO SYNERGY BETWEEN THE PEANUT AND COFFEE BUSINESS SAID NANCY ENSLEIN ANALYST AT GABELLI & CO RYE NY WHICH OWNS ABOUT 20 OF THE COFFEE COMPANY SHE SAID CHOCK FULL WOULD NOW BECOME A PURE PLAY IN THE COFFEE INDUSTRY WHERE IT COMPETES WITH PROCTER & GAMBLE CO'S FOLGER'S COFFEE AND KRAFT GENERAL FOODS INC'S MAXWELL HOUSE BRAND THE ANNOUNCEMENT THAT A PARTNERSHIP CONTROLLED BY MR KLUGE IS OFFERING 7 A SHARE FOR JIMBO'S STOCK AND THAT CHOCK FULL WILL SELL ITS HOLDINGS CAME AS A SURPRISE TO BOB THOMAS PRESIDENT OF THE PEANUT COMPANY WE DIDN'T EVEN KNOW THERE WERE DISCUSSIONS ABOUT THE SALE HE SAID MR KLUGE WHOSE WEALTH RANKS JUST BEHIND THAT OF BILL GATES FOUNDER OF MICROSOFT INC ACQUIRED HIS FORTUNE BY BUYING AND SELLING CELLULAR COMMUNICATIONS AND TELEVISION COMPANIES HE IS ALSO CHAIRMAN AND LARGEST SHAREHOLDER OF ORION PICTURES CORP WHICH RECENTLY EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION 9302040149 930204 STANIECKI'S ANGELS LEARN HOW TO WIN AT HOOPS AND LIFE WITH FAST BREAKS AND LAYUPS TEENAGE GIRLS FIND A HAVEN FROM DRUGS AND SQUALOR BY LUKE CYPHERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE FORT WASHINGTON ARMORY IS EVERY BIT AS GRIM AS YOU'D EXPECT ONE OF NEW YORK'S LARGEST AND MOST DANGEROUS HOMELESS SHELTERS TO BE HUNDREDS OF COTS AND DIRTY MATTRESSES ARE SHOVED INTO THE DINGY CORRIDORS DEAD RATS LINE THE HALL TO THE BATHROOM POLICE ARE REGULAR VISITORS BUT LISTEN CLOSELY ONE SOUND HERE DOESN'T BELONG IT'S COMING FROM BEHIND THE METAL DOOR OF ROOM 23 IT'S THE SOUND OF SQUEAKING SNEAKERS INSIDE IS ANOTHER WORLD A BRIGHTLY LIT GYM WITH A SPITSHINED HARDWOOD FLOOR SIXTEEN SEVENTH AND EIGHTHGRADE GIRLS NONE OLDER THAN 14 ARE SETTING PICKS RUNNING FAST BREAKS AND DRIVING TO THE HOOP AS A MUSCULAR MAN WITH GROUCHO MARX EYEBROWS EXHORTS THEM TO WORK STILL HARDER THIS IS THE HOME COURT OF THE INCARNATION SCHOOL ANGELS THE CATHOLIC YOUTH ORGANIZATION GIRLS' BASKETBALL CHAMPIONS OF NEW YORK CITY IT IS ALSO THE DOMAIN OF THE MAN WITH THE EYEBROWS TED STANIECKI PRINCIPAL OF THE KINDERGARTENTHROUGHEIGHTHGRADE SCHOOL AND THE FOUNDER DRIVER ASSISTANT COACH AND ALLAROUND GODFATHER OF THE TEAM ON THE COURT SHARON PAULINO SNARES A MISSED SHOT AWAY FROM VERONICA AYALA AS THE TWO EIGHTHGRADERS SCRAP FOR POSITION UNDER THE BASKET VERONICA GET YOUR BUTT DOWN YOUR ELBOWS OUT AND BOX HER OUT OF THERE YELLS MR STANIECKI THE GIRLS SCRAMBLE AGAIN AND THIS TIME VERONICA FORCEFULLY BACKS SHARON AWAY FROM THE HOOP THAT'S IT VERONICA MR STANIECKI CALLS DON'T BE AFRAID TO BE A LITTLE PHYSICAL OVER NEARLY TWO DECADES THE 41YEAROLD MR STANIECKI HAS BEEN HELPING CHILDREN IN THE IMMIGRANT ENCLAVE OF WASHINGTON HEIGHTS GIVING THEM CONFIDENCE RESPONSIBILITY AND A WILL TO WIN HE HAS BUILT A HAVEN FOR HIS ANGELS AND THEY LOVE HIM FOR IT SAYS SONJA RODRIQUEZ AN EIGHTHGRADER WITH A KNACK FOR DEFENSE WE'D DO ANYTHING FOR MR STANIECKI BECAUSE HE LOVES US SO MUCH NO ONE HAS IT TOUGHER THAN INCARNATION SAYS TONY D'ANGELO DIRECTOR OF THE BRONXMANHATTAN CYO BUT TED KEEPS EXPANDING ON A BUDGET OF ABOUT 10000 A YEAR INCARNATION SUPPORTS SIX BASKETBALL TEAMS AS WELL AS TRACK VOLLEYBALL AND FLOOR HOCKEY PROGRAMS THE ANGELS ARE INCARNATION'S CROWN JEWEL HAVING WON SEVEN OF THE LAST EIGHT MANHATTAN CYO TITLES AS WELL AS LAST YEAR'S CITYWIDE CHAMPIONSHIP FEW PARENTS SHOW UP FOR ANGEL GAMES MANY ARE WORKING OR SIMPLY CAN'T AFFORD TRIPS ACROSS THE CITY THE ONLY PARENT WHO MAKES EVERY GAME IS THE CURRENT HEAD COACH GEORGE LAWRENCE WHOSE STEPDAUGHTER NIESHA BUTLER IS THE ANGELS' STAR MR LAWRENCE PROVIDES THE STRATEGY MR STANIECKI PUSHES THE GIRLS TO DIVE FOR LOOSE BALLS PULLS ASIDE PLAYERS WHO DISPLAY A BAD ATTITUDE AND GENERALLY HOLDS THINGS TOGETHER MR STANIECKI CAME LATE TO BASKETBALL THE SON OF A WALDORFASTORIA HOTEL DOORMAN HE PLAYED FOOTBALL AS A TEENAGER IN QUEENS SO WHEN HE STARTED COACHING BASKETBALL IN 1975 IT WAS LITERALLY BY THE BOOK I'D GO TO THE LIBRARY TO FIND BOOKS ON RULES DRILLS EVERYTHING HIS COURTSIDE MANNER IS FAR FROM COURTLY SOMETIMES SAYS VERONICA ROLLING HER EYES HE YELLS AND HE CALLS ME BRACE FACE SHE ADDS BUT THOSE ARE MINOR DRAWBACKS WITHOUT BASKETBALL AND MR STANIECKI SHE SAYS WE'D JUST STAY AT HOME LOOKING AT WALLS OR WORSE WASHINGTON HEIGHTS IS ONE OF NEW YORK'S MOST HELLISH NEIGHBORHOODS POLICE SIRENS AND CAR ALARMS CUT THROUGH THE SALSA MUSIC AND WINTRY AIR YOU SEE DRUG DEALS RIGHT IN FRONT OF YOUR FACE EVERY DAY SAYS KITTY MERCADO AN EIGHTHGRADER WITH AN INTENSE ROUND FACE FRAMED BY A PURPLE HEADBAND THERE HAVE BEEN FOUR POLICE RAIDS IN HER BUILDING IN THE PAST TWO MONTHS SHE SAYS A FEW YEARS AGO A MAN ON CRACK JUMPED TO HIS DEATH FROM A FIFTHFLOOR WINDOW ONE OF KITTY'S SISTERS SAW HIM LAND CHILDREN AS ALWAYS ARE THE MOST VULNERABLE OLDER BOYS SOMETIMES CHALLENGE EACH OTHER TO IMPREGNATE LOCAL GIRLS THEY CALL IT SPERMING SAYS MR STANIECKI HE WANTS HIS KIDS TO AVOID ENDING UP STUCK IN A TENEMENT WITH A BABY THREE YEARS FROM NOW IT'S AN ISSUE THAT STRIKES CLOSE TO HOME HIS SISTER HE SAYS IS A SINGLE MOTHER WHO RELIES ON WELFARE TO SUPPORT HER TWO CHILDREN MR STANIECKI MAKES HIS KIDS WORK AND NOT JUST AT BASKETBALL KITTY MERCADO AND SEVERAL TEAMMATES REGULARLY CUT OUT OF PRACTICE EARLY TO HELP WITH SPECIAL OLYMPICS ONE OF MANY SERVICE EFFORTS MR STANIECKI EXPECTS FROM HIS PLAYERS TO SUPPORT THE TEAM THE GIRLS ALSO HAWK RAFFLE TICKETS CANDY AND ADVERTISING IN SCHOOL CALENDARS AND PROGRAMS YOU CAN ALWAYS TELL TED'S KIDS SAYS MR D'ANGELO THE CYO DIRECTOR THEY'RE ALWAYS HUSTLING SOMETHING THE GIRLS GET TO KEEP A PERCENTAGE OF THEIR SALES THE REST GOES TO THE TEAM PAYING FOR IMPROVEMENTS TO THE GYM AND THE BEST UNIFORMS IN THE LEAGUE WHITE WITH BLUE TRIM AND THE WORD INCARNATION SCRIPTED ACROSS THE FRONT THE UNIFORMS AREN'T AN EXTRAVAGANCE MR STANIECKI INSISTS WE DON'T WANT TO BE LAUGHED AT BY RICH KIDS HE SAYS WHEN YOU GOT SO MANY OTHER PROBLEMS YOU DON'T WANT TO WORRY ABOUT LOOKING RAGGEDY THE TEAM AND MR STANIECKI STICK TO A RELENTLESS SCHEDULE THEY PRACTICE AT LEAST THREE DAYS A WEEK AND THERE ARE SOMETIMES FIVE GAMES IN A WEEKEND HE FIGURES THAT THE BUSIER HE KEEPS THE GIRLS THE BETTER OFF THEY ARE THE COMPETITION AND LONG VAN RIDES CAN TRANSLATE INTO 15HOUR DAYS BUT MR STANIECKI SAYS THE ANGELS PROVIDE A RESPITE FROM THE SUICIDE ATTEMPTS DISINTEGRATING FAMILIES AND ACADEMIC WOES HE MUST DEAL WITH AT SCHOOL KITTY MERCADO'S SISTER SARAH A PLAYER ON LAST YEAR'S CHAMPIONSHIP TEAM WHO IS NOW IN HIGH SCHOOL SAYS PEOPLE IN OTHER NEIGHBORHOODS OFTEN THINK THAT BECAUSE THE ANGELS HAIL FROM WASHINGTON HEIGHTS WE'LL COME OUT SHOOTING BULLETS INSTEAD OF BASKETS MR STANIECKI TELLS HIS PLAYERS THAT TO OVERCOME THAT PREJUDICE THEY MUST BEHAVE BETTER THAN THEIR RIVALS STREET NONSENSE IS STRICTLY FORBIDDEN ALONG WITH FIGHTING CURSING CRYING OR FAKING AN INJURY THEY'RE AMBASSADORS FOR THE SCHOOL MR STANIECKI EXPLAINS SO FAR THIS SEASON THE ANGELS HAVE COMPILED A 365 RECORD INCLUDING FOUR INVITATIONAL TOURNAMENT CHAMPIONSHIPS MR STANIECKI EXPECTS A ROUGH TIME IN THE CITY PLAYOFFS LATER THIS MONTH BUT THINKS THE ANGELS CAN WIN THE CITY TITLE AGAIN AND MAYBE EVEN CHALLENGE FOR THE STATE CHAMPIONSHIP AFTER THAT BUT EVEN VICTORIES DON'T ALWAYS SATISFY MR STANIECKI IN HIS VAN ONE NIGHT STEERING BACK TO WASHINGTON HEIGHTS FROM A GAME IN THE SOUTH BRONX HE GENTLY ADMONISHES HIS PLAYERS LISTEN HE SAYS YOU PLAYED OK TONIGHT BUT YOU WERE 15 OR 20 POINTS BETTER THAN THAT TEAM AND YOU WERE LUCKY TO BEAT THEM BY FOUR THE GIRLS NOD QUIETLY THEN COME THE QUESTIONS REPEATED AGAIN AND AGAIN IN SPANISHACCENTED ENGLISH DID I PLAY GOOD DID I MR STANIECKI WHAT ABOUT ME HOW DID I DO AS HE DRIVES HE SAYS YES TO EACH OF THE EAGER INTERROGATORS REASSURING THEM THAT THEY WERE JUST FINE 9302040148 930204 IMPERILED PROMISES RISK TO RETIREES RISES AS FIRMS FAIL TO FUND PENSIONS THEY OFFER THE TAB MAY HAVE TO BE PAID BY US GUARANTY AGENCY AND HEALTHY COMPANIES CHANCE OF TAXPAYER BAILOUT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS PAN AMERICAN WORLD AIRWAYS STRUGGLED TO SURVIVE IN THE 1980S THE NOWDEFUNCT AIRLINE SENT LETTERS TO WORKERS' HOMES ASSURING THEM THEIR PENSIONS WERE PROTECTED UNDER FEDERAL LAW SHOULD WORSE COME TO WORST BUT AFTER PAN AM ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS AND TERMINATED THE PENSION PLAN WORKERS GOT A JARRING SURPRISE SAYS TOM CHRISTIE WHO WAS A JETENGINE REPAIR MANAGER AT NEW YORK'S KENNEDY AIRPORT YOU THINK YOUR PENSION IS INTACT AND THEN YOU FIND OUT IT'S NOT MR CHRISTIE WHO LIVES IN NORTH MERRICK NY HAD BEEN PROMISED THAT IF HE LEFT PAN AM HE WOULD GET A PENSION OF MORE THAN 1000 A MONTH WHEN HE TURNED 55 IN LATE 1991 BUT THE FEDERAL PENSION BENEFIT GUARANTY CORP WHICH TOOK OVER THE PAN AM PLAN DETERMINED THAT IT IS OBLIGED TO PAY HIM ONLY 596 A MONTH AFTER BEING OUT OF WORK FOR 10 MONTHS MR CHRISTIE HAS TAKEN A JOB AS AN AIRCRAFTMAINTENANCE ANALYST AT LESS THAN HALF HIS FORMER PAY AS MORE GIANT COMPANIES FALL ON HARD TIMES RETIREES MAY FACE A WAVE OF BROKEN PROMISES THE GOVERNMENT THROUGH THE PBGC BACKSTOPS THE PENSIONS OF 41 MILLION AMERICANS WHO HAVE THE PLANS THAT THE US HAS PROMISED TO INSURE BUT OFTEN AS WITH PAN AM'S MR CHRISTIE PENSIONS PROMISED BY EMPLOYERS AREN'T FULLY COVERED BY THE AGENCY ALTHOUGH 85 OF PBGCINSURED PLANS ARE FULLY FUNDED THE SYSTEM FALLS FAR SHORT OF WHAT MANY PENSIONERS ARE LED TO BELIEVE IS UNIVERSAL GOVERNMENT PROTECTION UNDER THE 1974 LAW THAT CREATED THE AGENCY THE PBGC CURRENTLY SETS A MAXIMUM GUARANTEE AT 29250 A YEAR IT ALSO DISCOUNTS RETIREMENT PAYMENTS ACCORDING TO THE RETIREE'S AGE THESE REDUCTIONS CAN AMOUNT TO A TWOTHIRDS CUT FOR YOUNGER RETIREES AND IT DOESN'T COVER MOST EARLYRETIREMENT SUPPLEMENTS AMONG OTHER EXEMPTIONS AND NOT ONLY PENSIONERS STAND TO LOSE HEALTHY CORPORATIONS AND TAXPAYERS ARE AT RISK TOO WITH MORE AND MORE TROUBLED COMPANIES UNDERFUNDING THEIR PENSIONS THE PBGC COULD SOMEDAY FACE AN AVALANCHE OF TERMINATED PLANS MUCH AS THE FEDERAL DEPOSIT INSURERS WERE SNOWED UNDER BY HUNDREDS OF FAILED THRIFT INSTITUTIONS IN THE LATE 1980S AS A RESULT COMPANIES' PREMIUMS TO THE PBGC COULD RISE TO COVER A GROWING SHORTFALL IN ITS OWN FUNDING IN FACT THE PBGC SAYS IT WILL HAVE TO RAISE PREMIUMS FOR THE PENSION FUNDS IT COVERS UNLESS THE GOVERNMENT IMPOSES NEW CONSTRAINTS ON CORPORATE UNDERFUNDING PREMIUMS WOULD HAVE TO TRIPLE THE AGENCY SAYS A PROSPECT THAT ANGERS MANY COMPANIES WITH FULLY FUNDED PLANS THE HIGHER PREMIUMS COULD ACCELERATE THE CURRENT FLIGHT OF ABOUT 10 OF THE CORPORATE PLANS FROM THE PBGC SYSTEM EVERY YEAR WIDENING THE AGENCY'S FINANCING PROBLEM BY REDUCING ITS PREMIUM INCOME ULTIMATELY THE TAXPAYERS COULD BE LEFT TO PICK UP A SIZABLE TAB IF A BAILOUT PROVES NECESSARY PARTICULARLY DISTURBING TO THE PBGC IS THE FACT THAT MANY COMPANIES ARE DOING WHAT PAN AM DID HOLDING BACK ON PENSION CONTRIBUTIONS WITH THE ASSURANCE THAT THE GOVERNMENT WILL AT LEAST PARTLY HONOR THEIR PROMISES TO THEIR WORKERS INDEED MANY COMPANIES HAVE NOT ONLY SHORTCHANGED THEIR EXISTING PENSIONS BUT ALSO MADE THEIR PLANS MORE GENEROUS WITHOUT INCREASING THEIR CONTRIBUTIONS THE PLANS THAT THE GOVERNMENT SAYS ARE UNDERFUNDED DO MEET MINIMUM FUNDING REQUIREMENTS UNDER THE LAW PAN AM FOR EXAMPLE OBTAINED INTERNAL REVENUE SERVICE WAIVERS IN THE 1980S LETTING IT FORGO ITS USUAL PENSION CONTRIBUTIONS COMPANIES TAKING THESE SOCALLED FUNDING HOLIDAYS SAY THEY WILL PLOW MONEY INTO THEIR PLANS LATER PERHAPS WHEN TIMES ARE ROSIER BUT THOSE TIMES MAY NEVER ARRIVE AND IN THE MEANTIME THE UNDERFUNDERS ARE TAKING A GAMBLE WITH THEIR RETIREES OTHER COMPANIES PAYING PBGC PREMIUMS AND TAXPAYERS TOO MANY EMPLOYERS CONTINUE TO OPERATE SEVERELY UNDERFUNDED PENSION PLANS SAYS REP JJ PICKLE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE'S OVERSIGHT SUBCOMMITTEE THE TEXAS DEMOCRAT SAYS THEY HAVE DELIBERATELY CONTINUED YEAR AFTER YEAR TO MAKE EMPTY PENSION PROMISES PROMISES THEY CANNOT OR DO NOT KEEP HE WARNS THAT UNLESS THE PATTERN STOPS INEVITABLY CONGRESS WILL BE CALLED UPON TO BAIL OUT THE PBGC GENERAL MOTORS CORP FOR EXAMPLE HAS AGREED TO RAISE PENSION BENEFITS FREQUENTLY SINCE 1983 INCLUDING 3 BILLION OF NEW BENEFITS IN A 1990 CONTRACT EVEN AS ITS PENSIONPLAN UNDERFUNDING INCREASED 13 BILLION THE PBGC SAYS GM RECOGNIZES THE PENSION SHORTFALL AND PLANS TO CONTRIBUTE MORE TO ITS UNDERFED PLANS OUR GOAL OVER THE LONGTIME HORIZON IS TO BE FULLY FUNDED ON A REALWORLD OR ECONOMIC BASIS BY THE END OF THE CENTURY A GM SPOKESMAN SAYS TRANS WORLD AIRLINES AND CONTINENTAL AIRLINES HAVE EACH ADDED 100 MILLION IN PENSION BENEFITS WHILE UNDER CHAPTER 11 BANKRUPTCY PROTECTION WITH THE BANKRUPTCY JUDGES' BLESSING AND UNIROYALGOODRICH A MICHELIN GROUP UNIT LIFTED BENEFITS IN ONE PENSION FUND BY 50 TO 80 BETWEEN 1988 AND 1991 FROM SEVERAL EARLIER UNION CONTRACTS EVEN THOUGH THE PLAN WAS WOEFULLY UNDERFUNDED THE PBGC SAYS THE COMPANY DISPUTES THE PBGC ESTIMATE OF HOW MUCH THE PLAN WAS EXPANDED MANY EMPLOYERS IF THEY'RE LOW ON FUNDS TAKE THE PATH OF LEAST RESISTANCE TO WORKER DEMANDS FOR IMPROVED WAGES OR BENEFITS SAYS HOWARD WEIZMANN VICE PRESIDENT FOR BENEFITS CONSULTING AT AETNA LIFE INSURANCE CO SINCE MORE GENEROUS PENSION BENEFITS ARE COSTS THAT AREN'T INCURRED FOR YEARS AND MAY BE PICKED UP BY THE GOVERNMENT ANYWAY SOME COMPANIES WOULD RATHER PROMISE BIGGER PENSION BENEFITS THAN FACE THE IMMEDIATE COSTS OF HIGHER WAGES MR WEIZMANN A FORMER EXECUTIVE DIRECTOR OF THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS AN EMPLOYER GROUP SAYS MANY COMPANIES CONSIDER THE PBGC BACKSTOP PAID FOR BY CORPORATE INSURANCE PREMIUMS AS PART OF THEIR FINANCIAL RESOURCES AND THEY REGARD PENSION INCREASES AS WRITTEN ON PBGC'S ACCOUNT MR WEIZMANN SAYS YOU CAN INCREASE BENEFITS BECAUSE YOU KNOW THAT OTHER EMPLOYERS SUPPORT THE SYSTEM MEANWHILE COMPANIES CAN MISLEAD EMPLOYEES AS TO JUST HOW FARREACHING THAT PENSION SUPPORT IS ON OCT 5 1990 THE PBGC TERMINATED EASTERN AIRLINES' PENSION PLANS BUT 20 DAYS LATER THE AIRLINE'S PENSION AND INSURANCE DIRECTOR WROTE EASTERN RETIREES ASSURING THEM THAT NO BENEFITS WOULD BE CUT AND EARLYRETIREMENT PAYMENTS WOULD CONTINUE IN ADDITION A LATER PBGC BROCHURE SAID THE AGENCY GUARANTEES DISABILITY PAYMENTS FOR DISABILITIES EXISTING BEFORE PLANS ARE TERMINATED FRANK DYSART A FORMER 60000AYEAR EASTERN PILOT ON DISABILITY RETIREMENT SINCE 1989 BECAUSE OF AN INOPERABLE RUPTURED DISK IN HIS BACK AND A HEART CONDITION SAYS HE WAS ASSURED BY THE PBGC AND EASTERN'S MANAGEMENT THAT HIS DISABILITY PAY WOULDN'T BE AFFECTED BUT THE PBGC SLASHED IT TO 984 A MONTH FROM 2200 AND HE HAS WRITTEN OFF A PROMISED INCREASE TO 2500 A MONTH UNDER THE COMPANY PLAN MR DYSART'S ONLY HEALTH COVERAGE IS MEDICARE EVEN THOUGH HE NOW IS ONLY 49 YEARS OLD AND THE PINE LODGE GA MAN SAYS I CAN'T EVEN GET A JOB AS A NEWSPAPER BOY BECAUSE OF MY DISABILITY WITHOUT 1100 A MONTH IN SOCIAL SECURITY DISABILITY BENEFITS I DON'T KNOW WHAT THE HELL I'D DO HE SAYS IN THE FISCAL YEAR ENDED LAST SEPT 30 THE PBGC TOOK OVER TERMINATED PENSION PLANS COVERING 52000 PEOPLE DOUBLE THE YEAREARLIER TOTAL OF 26000 IN ALL IT HAS ASSUMED RESPONSIBILITY FOR MORE THAN 1700 PLANS INVOLVING 424000 RETIREES AND WORKERS THE GOVERNMENT INSURES ONLY DEFINEDBENEFIT PLANS UNDER WHICH EMPLOYERS PROMISE SPECIFIC PENSION PAYMENTS WHEN A WORKER RETIRES AND HAVE TO COME UP WITH THE MONEY TO PAY THOSE BENEFITS COMPANIES WITH DEFINEDBENEFIT PLANS MUST PARTICIPATE IN THE SYSTEM AND THOSE CHOOSING TO WITHDRAW FROM IT MUST FIRST RESTRUCTURE THEIR PENSION PLANS IN 71 TERMINATED PLANS RECENTLY STUDIED BY THE GENERAL ACCOUNTING OFFICE THE CONGRESSIONAL WATCHDOG AGENCY PARTICIPANTS IN 31 OF THE PLANS LOST A TOTAL OF 12 OF THE PLANS' PROMISED BENEFITS CERTAINLY PARTICIPANTS CAN SUFFER IF THEIR PLANS TERMINATE SAYS JAMES LOCKHART WHO WAS THE PBGC EXECUTIVE DIRECTOR UNTIL LEAVING TWO WEEKS AGO WITH THE CHANGE IN ADMINISTRATIONS PRESIDENT CLINTON HASN'T NAMED A REPLACEMENT THE PBGC HAS BEEN SUED BY SOME RETIREES WHO HAVE CHARGED THAT THE AGENCY UNFAIRLY INTERPRETED THE LAW AND REFUSED TO PAY PROMISED BENEFITS IN SOME CASES THE PBGC HAS BEEN ORDERED TO MAKE CERTAIN PAYMENTS OR HAS AGREED TO A SETTLEMENT KATHLEEN UTGOFF WHO HEADED THE AGENCY UNTIL 1989 SAYS IT HAS DEVELOPED A BASIC BUNKER MENTALITY THE VIEW NOW IS ONE OF AN S&L SITUATION AND THEY DO EVERYTHING THEY CAN TO REDUCE CLAIMS SHE SAYS MR LOCKHART SAYS THE AGENCY MERELY ADHERES TO RESTRICTIONS UNDER THE LAW ADDRESSING THE CORPORATE PENSION UNDERFUNDING THAT LEADS TO ALL THESE PBGC TROUBLES REP PICKLE PLANS A HEARING TODAY ON LEGISLATION THAT HE INTRODUCED ALONG WITH SEN JAMES JEFFORDS A VERMONT REPUBLICAN IT WOULD FORCE COMPANIES WITH UNDERFUNDED PLANS TO NARROW THE FUNDING GAP AND WOULD LIMIT THEIR ABILITY TO RAISE PENSION BENEFITS WITHOUT A COMMENSURATE INCREASE IN FUND ASSETS WE WANT TO BE CAREFUL THAT LEGISLATION DOESN'T PUT COMPANIES OUT OF BUSINESS OR INTO BANKRUPTCY FROM BEING FORCED BY CONGRESS TO SPEED UP FUNDING COMMENTS CHRISTOPHER BOWLIN AN EMPLOYEEBENEFITS OFFICIAL AT THE NATIONAL ASSOCIATION OF MANUFACTURERS THE NAM SAYS SCENARIOS BRIGHTER THAN THE ONE ADVANCED BY THE PBGC ARE JUST AS LIKELY AND IT DOESN'T WANT LEGISLATION BASED ON PREDICTIONS THAT MAY NOT PAN OUT IT ALSO SAYS EMPLOYEES ARE BETTER OFF IF A COMPANY MAINTAINS ITS OVERALL VIABILITY RATHER THAN JEOPARDIZING IT BY TRYING TO FULLY FUND PENSION PLANS YET MANY LARGE PBGCINSURED PLANS ESPECIALLY IN THE TROUBLED AUTO TIRE AIRLINE AND STEEL INDUSTRIES FALL SHORT OF BEING FULLY FUNDED TO SPOTLIGHT THE PROBLEM THE PBGC ISSUES A CONTROVERSIAL TOP 50 LIST OF COMPANIES WITH UNDERFUNDED PLANS RANKED BY PERCENTAGE OF LIABILITIESBENEFIT PROMISES NOT COVERED BY PLAN ASSETS MR LOCKHART NOTES THAT MANY COMPANIES ON THE LIST ARE IN GOOD FINANCIAL SHAPE AND THAT THEIR PENSION PLANS AREN'T IN DANGER OF FOLDING BUT HE WARNS THAT SOME ARE SO WEAK THAT THEIR PLANS COULD WELL BE TERMINATED IN COMING YEARS TRANSFERRING THE LIABILITY TO THE PBGC AND POSING A SERIOUS FINANCIAL PROBLEM FOR THE AGENCY IN ANOTHER HOUSE HEARING ON TUESDAY MR LOCKHART SAID THE AGENCY NOW HAS A PESSIMISTIC PROJECTION THAT ITS 25 BILLION DEFICIT THE EXCESS OF ITS LIABILITIES OVER ITS ASSETS AS OF LAST SEPT 30 COULD CLIMB TO A 16 BILLION TO 28 BILLION RANGE IN A DECADE LAST YEAR ITS PESSIMISTIC FORECAST WAS AN 18 BILLION DEFICIT IN 10 YEARS THERE ARE SOME SCENARIOS WHERE WE COULD GET TO BE A VERY MAJOR CRISIS MR LOCKHART SAYS IT'S HARD TO PREDICT WHERE THE BIG HITS ARE GOING TO OCCUR BUT THE BIG HITS CAN BE VERY VERY BIG HOW DID SO MANY PENSION FUNDS GET IN THIS FIX AS EMPLOYERS STRUGGLE TO MAKE ENDS MEET IT'S RELATIVELY EASY TO GIVE SHORT SHRIFT TO PENSION PLANS THE MONEY ISN'T PAID OUT UNTIL WORKERS RETIRE AND THEN ONLY IN MONTHLY INCREMENTS OVER DECADES FUNDING CAN BE POSTPONED UNTIL A HOPEDFOR SUNNIER DAY MANY COMPANIES' MALNOURISHED PENSION PLANS ARE TRACEABLE TO MERGERS AND ACQUISITIONS IN RECENT YEARS WHEN COMPANIES ACQUIRE A WEAK OPERATION THEY OFTEN END UP WITH SOME UNDERFUNDED PENSION PLANS AS WELL NATIONAL INTERGROUP FOR EXAMPLE TOOK ON SOME SOUR FUNDS WHEN IT ACQUIRED WEIRTON STEEL CORP ALSO INHERITING BADLY UNDERFUNDED PLANS THROUGH ACQUISITIONS HAVE BEEN AMERICAN NATIONAL CAN CO ANCHOR GLASS CONTAINER CORP AND RAVENSWOOD ALUMINUM LABOR UNIONS PLAY A MAJOR ROLE IN PENSIONBENEFIT INCREASES THAT WORSEN THE UNDERFUNDING PROBLEM RATHER THAN NAILING DOWN HARDCASH WAGE INCREASES THEY OFTEN FIND IT EASIER TO WIN BENEFIT GAINS THAT WON'T BE PAID FOR YEARS AND WILL BE COVERED BY THE PBGC IF THE COMPANY FALTERS INSTEAD OF INCREASED WAGES WE BOUGHT BENEFITTYPE PACKAGES EVERY YEAR SAYS TIMOTHY BUCKSTON A CLEVELANDBASED OFFICIAL OF THE UNITED STEELWORKERS OF AMERICA SPEAKING OF BENEFIT INCREASES THAT THE UNION WRUNG OUT OF TROUBLED LTV CORP NOW UNDER CHAPTER 11 HE SAYS THEY KNEW THE PBGC PROTECTION WAS THERE BUT WHEN THE PBGC TOOK OVER THAT PLAN IN 1987 IT REFUSED TO PAY A 400 MONTHLY SUPPLEMENT COVERING EARLY RETIREMENT FOR SHUTDOWNS THE PENSION DISPUTE EXPLODED INTO A PROTRACTED WRANGLE BETWEEN LTV AND THE PBGC PROLONGING THE BANKRUPTCY PROCEEDINGS IN 1991 GOODYEAR TIRE & RUBBER CO ANOTHER COMPANY ON THE PBGC TOP50 LIST GRANTED THE UNITED RUBBER WORKERS UNION A 28 PENSIONBENEFIT INCREASE WHEN THE PENSION PLAN WAS ALREADY UNDERFUNDED AT TODAY'S CONGRESSIONAL HEARING THE GAO IS EXPECTED TO RELEASE A REPORT ON PENSIONBENEFIT INCREASES GRANTED IN 1990 AND 1991 BY EIGHT LARGE COMPANIES WITH UNDERFUNDED PLANS THE GAO FOUND THAT THE TWO COMPANIES IN EACH OF THE AUTO STEEL AIRLINE AND TIRE INDUSTRIES WHOSE PENSIONS WERE MOST UNDERFUNDED HAD A COMBINED 5 BILLION WIDENING OF THEIR UNDERFUNDING GAP THE GAO FOUND THAT 40 OF THE INCREASE WAS ATTRIBUTABLE TO MOVES TO EXPAND BENEFITS ALTHOUGH MANY COMPANIES WITH UNDERFUNDED PLANS CONTEND THAT THE PBGC OVERSTATES THE PROBLEM THE AGENCY SAYS IT MAY WELL BE UNDERPLAYING THE DANGER BECAUSE UNDERFUNDING OFTEN BALLOONS WHEN A PLAN MUST BE TERMINATED AND THE GAO AGREES THAT CORPORATE FIGURES MAY UNDERSTATE THE PROBLEM IN A RECENT REPORT ON HIDDEN LIABILITIES IT SAID THE PBGC HAD DETERMINED THAT 44 PLANS IT STUDIED HAD TOTAL UNFUNDED LIABILITIES OF 27 BILLION WHEN THE PLANS WERE TERMINATED OR 58 MORE THAN WHAT THE COMPANIES HAD SHOWN IN THEIR LAST FILINGS WITH THE GOVERNMENT NO ONE PREDICTS AN IMMEDIATE CRISIS BUT THE PROBLEMS ARE BUILDING WE CAN HIDE IT FOR A WHILE BUT IT'S GOING TO GET WORSE MR LOCKHART WARNS 9302040147 930204 WHO'S NEWS ANGELES NAMES VINSON TO TAKE OVER POSTS OF ELLIOTT CATTIVERA LOS ANGELES ANGELES CORP SAID CARROLL D VINSON 52 YEARS OLD WAS ELECTED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THE REALESTATE INVESTMENT COMPANY HE SUCCEEDS WILLIAM H ELLIOTT AS CHIEF EXECUTIVE AND JOSEPH CATTIVERA AS PRESIDENT MR ELLIOTT 60 REMAINS THE COMPANY'S CHAIRMAN AND LARGEST SHAREHOLDER MR CATTIVERA 51 REMAINS CHIEF EXECUTIVE OF THE FACTORY MERCHANTS MALLS INC UNIT WHICH OPERATES FACTORYOUTLET MALLS ANGELES SAID IN NOVEMBER THAT MR ELLIOTT MIGHT RESIGN HIS EXECUTIVE POST AFTER INSIGNIA FINANCIAL GROUP INC GREENVILLE SC ASSUMED MANAGEMENT OF ANGELES'S REALESTATE PARTNERSHIP BUSINESS MR CATTIVERA WAS IDENTIFIED AS MR ELLIOTT'S LIKELY SUCCESSOR YESTERDAY HOWEVER AN ANGELES SPOKESMAN SAID THAT MR CATTIVERA WOULD INSTEAD ASSUME ADDITIONAL DUTIES AND THE TITLE OF PRESIDENT AT THE FACTORY MERCHANTS UNIT WHICH IS MOVING ITS MAIN OFFICES TO LOS ANGELES FROM THE BOSTON AREA MR VINSON A CERTIFIED PUBLIC ACCOUNTANT WAS FORMERLY PRESIDENT OF INSIGNIA'S INSIGNIA CAPITAL CORP UNIT HIS ELECTION TO THE ANGELES BOARD INCREASES IT TO SIX MEMBERS 9302040146 930204 WHO'S NEWS DIAGNOSTEK INC TAPS RODRIGUEZ TO BECOME CHIEF OPERATING OFFICER ALBUQUERQUE NM CITING ITS RAPID GROWTH DIAGNOSTEK INC NAMED DUKE RODRIGUEZ EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR RODRIGUEZ 35 YEARS OLD WAS FORMERLY VICE PRESIDENT AND CHIEF OPERATING OFFICER OF LOVELACE INC A CIGNA CORP UNIT THAT IS NEW MEXICO'S LARGEST HEALTH MAINTENANCE ORGANIZATION HE SUCCEEDS ARTHUR SOLOMON 45 WHO WILL REMAIN PRESIDENT OF THE COMPANY'S LARGEST SUBSIDIARY HEALTH CARE SERVICES THE UNIT PROVIDES PHARMACY SERVICES TO CORPORATIONS UNIONS AND OTHER ORGANIZATIONS WITH THE COMPANY'S RAPID EXPANSION AND SIGNIFICANT OPPORTUNITIES AHEAD IT IS APPROPRIATE THAT THE DUTIES OF A CORPORATE CHIEF OPERATING OFFICER AND THE HEAD OF OUR HCS SUBSIDIARY BE DIVIDED SAID NUNZIO DESANTIS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER A SPOKESMAN FOR THE COMPANY SAID THE MANAGEMENT CHANGES WERE ABSOLUTELY NOT RELATED TO THE COMPANY'S RECENT DISCLOSURE THAT IT OVERSTATED RESULTS IN ITS FIRST QUARTER ENDED JUNE 30 THIS IS RELATED TO GROWTH THE SPOKESMAN SAID THAT WAS AN ACCOUNTING PROBLEM HE NOTED THAT THE COMPANY IS ALSO SEARCHING FOR A NEW CHIEF FINANCIAL OFFICER FOLLOWING THE REVELATION OF THE ACCOUNTING PROBLEM WHICH THE COMPANY DESCRIBED AS ERRORS IN THE RECORDING OF INVENTORY AND IN THE RECORDING OF A CUSTOMER REFUND MEDCO CONTAINMENT SERVICES INC OF MONTVALE NJ TERMINATED AN AGREEMENT TO ACQUIRE DIAGNOSTEK FOR 411 MILLION 9302040145 930204 LETTERS TO THE EDITOR HELPING DC GET A GRIP ON YOUR WALLET IN URGING THAT THE PRESIDENT BE GIVEN A LINEITEM VETO ON BOTH APPROPRIATIONS AND TAX BILLS SEN BILL BRADLEY LINEITEM VETO WHY I CHANGED MY MIND JAN 13 EDITORIAL PAGE WOULD HAVE US BELIEVE THAT GOVERNMENT SPENDING AND TAX RELIEF ARE EQUIVALENT JOINING WITH THE TAX EXPENDITURE CROWD SEN BRADLEY MAKES THE HIDDEN ASSUMPTION THAT PEOPLE'S INCOMES BELONG INITIALLY TO THE GOVERNMENT ACCORDING TO THIS VIEW IT IS A GIFT FROM GOVERNMENT TO THE AMERICAN PEOPLE IF THE GOVERNMENT LETS US KEEP MORE OF OUR INCOME THAN THE STANDARD TAX SYSTEM WOULD DICTATE WITH STANDARD MEANING WHATEVER THOSE IN WASHINGTON SAY IT DOES HOWEVER A BASIC PROPOSITION UNDERLYING THIS NATION'S FOUNDING AND ALSO SOUND ECONOMICS IS THAT INCOME BELONGS TO THE PEOPLE WHO PRODUCE IT SEN BRADLEY SAYS THAT THE LIST OF TAX EXPENDITURES IN 1992 COST THE GOVERNMENT 375 BILLION BESIDES BEING A GROSS OVERSTATEMENT BECAUSE THE INDIVIDUAL ITEMS ARE NOT ADDITIVE THE SENATOR NEGLECTS TO MENTION THAT MOST OF THE EXPENDITURES ARE ABATEMENTS OF OTHERWISE PUNITIVE TAXES ON POPULAR AND DESIRABLE ACTIVITIES THE THREE LARGEST EXPENDITURES ARE THE DEFERRAL OF TAX ON EMPLOYERPROVIDED PENSION CONTRIBUTIONS THE TAX EXEMPTION FOR EMPLOYERFINANCED HEALTH BENEFITS AND THE MORTGAGE INTEREST DEDUCTION SEN BRADLEY SAYS HE WANTS TO CONTROL THESE EXPENDITURES FOR THE FEW BUT HIS PROPOSAL WOULD CREATE A NEW BARRIER TO ALL TAX CUTS AS WELL AS TAX INCREASES THE PURPOSE OF A LINEITEM VETO IS TO GIVE THE AMERICAN PEOPLE MORE PROTECTION NOT LESS AGAINST THE TAXANDSPEND FEDERAL GOVERNMENT APPLYING A LINEITEM VETO TO TAX REDUCTIONS WOULD TIGHTEN WASHINGTON'S GRIP ON THE AMERICAN PEOPLE'S WALLETS SO TRILLION DOLLAR BILL BRADLEY AFTER 14 YEARS OF AVID CONGRESSIONAL TAXING AND FEEDING THE DEFICIT FINALLY WANTS A PRESIDENT TO CURB HIM AND HIS OUTOFCONTROL COLLEAGUES NEW JERSEY'S REAGAN DEMOCRATS MAY HAVE BEEN TAKEN IN BY BILL CLINTON'S PROMISES TO REFORM GOVERNMENT BUT I DOUBT THAT THEY'LL BUY SEN BRADLEY'S NEW POSTURING HIS PROPOSAL MAKES SUPERFICIAL SENSE IN THAT IT WOULD LET PRESIDENTS VETO TAX EXEMPTIONS NOT JUST SPENDING BILLS IN THE WASHINGTON PORK BARREL NOTE HOWEVER THAT IN THE TYPICAL LIBERAL MINDSET SEN BRADLEY SEES EXEMPTIONS AS FEDERAL SPENDING YOUR MONEY BELONGS TO THE GOVERNMENT FOR JUST ABOUT ANYTHING YOUR LEGISLATORS DECIDE IS GOOD FOR YOU ANYTHING NOT COLLECTED COMES OUT OF THE GOVERNMENT'S POCKET GOD FORBID THAT YOU HIT THE JACKPOT WITH TWO WEEKS OF EXEMPT RENTAL INCOME TO USE ONE OF HIS EXAMPLES INSTEAD OF FUNDING WITH THAT MONEY YOUR CONGRESSMEN'S NOTIONS OF WHAT'S GOOD FOR YOU AND GOD HELP ANY PRESIDENT WHO WANTS TO HELP YOU HIT THAT JACKPOT BY LETTING YOU KEEP ANYTHING SEN BRADLEY'S PROPOSAL WOULD SEE TO THAT FOR 14 YEARS SEN BRADLEY HAS SUPPORTED THE NATIONAL LIBERAL PASSION TO SOAK THE RICH FOR REDISTRIBUTIONIST CAUSES AND NEW JERSEY TAXPAYERS HAVE BEEN AMONG THE HARDEST HIT BECAUSE THEIR INCOMES EXCEED THE NATIONAL AVERAGE THAT RECORD ALMOST CAUGHT UP WITH HIM AT THE END OF HIS PAST TERM THE AMOUNT OF OUTOFSTATE SPECIAL INTEREST MONEY IN HIS NEXT BID WILL SHOW US HOW SERIOUS HE REALLY IS ABOUT REFORM I ALWAYS HAVE HAD NOTHING BUT THE HIGHEST RESPECT FOR THE SENATOR FURTHER I UNDERSTAND THAT THESE ARE TIMES OF GREAT EXPECTATIONS FOR ALL OF US ESPECIALLY THOSE WHO HAVE LABORED OVER THE PAST 12 YEARS IN OPPOSITION TO THIS NATION'S PAST TWO PRESIDENTS HOWEVER MR BRADLEY'S NEOCONFESSIONS RING HOLLOW AND ARE MORE APPROPRIATE FOR A DEMOCRATIC PEP RALLY THAN FOR THE JOURNAL I WONDER WHETHER MR BRADLEY TRULY BELIEVES THAT THE READERS OF THE JOURNAL WILL THINK 1 THAT THE SIZE OF THE DEFICIT THE INEQUITIES IN THE TAX CODE AND THE WEIGHT OF SPECIAL INTEREST GROUPS ARE ALL ISSUES THAT AROSE SOMETIME IN NOVEMBER 1992 OR 2 THE FACT THAT MR BRADLEY WANTS THE LINEITEM VETO POWER TO BE A TWOYEAR EXPERIMENT IS MERELY A COINCIDENCE AND NOT A PLOY EITHER TO EXTEND THE RIGHT FOR A STRONG CLINTON IN 1995 OR PULL THE RUG OUT FROM UNDER AN ANTICIPATED REPUBLICAN VICTOR 9302040144 930204 THEY SAY HE'S BEING A BAD ACTOR BY PLAYING THIS ROLE ON THE LOT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL CHARLESTON WVA NICK NOLTE FRESH OFF A STRING OF HOLLYWOOD STARRING ROLES COULD WELL BE UPSTAGED BY ANGRY RESIDENTS HERE THE STAR OF LORENZO'S OIL AND THE PRINCE OF TIDES IS A VERY PARTTIME CHARLESTON RESIDENT WITH A TWOSTORY HOUSE IN A HILLY SECLUDED NEIGHBORHOOD HERE HIS WIFE REBECCA IS THE DAUGHTER OF A PROMINENT CHARLESTON SURGEON MR NOLTE'S NEIGHBORS WHILE PLEASED TO HAVE HIM AS A NEIGHBOR ARE OUTRAGED OVER HIS LATEST PROPOSAL THE ACTOR WANTS TO TURN HIS 46 ACRES INTO A 10LOT SUBDIVISION CALLED DOWN AND OUT IN SOUTH HILLS AN OBVIOUS TAKEOFF FROM HIS MOVIE DOWN AND OUT IN BEVERLY HILLS IN THAT 1985 BOXOFFICE WINNER MR NOLTE PLAYED A HOMELESS MAN TAKEN IN BY A MILLIONAIRE AND HIS FAMILY UPINARMS NEIGHBORS HAVE CIRCULATED A PETITION ASKING THE MUNICIPAL PLANNING COMMISSION TO DENY MR NOLTE'S REQUEST IT WOULD NEARLY DOUBLE TO 20 THE NUMBER OF HOMES ON A PRIVATE ONELANE FARM ROAD CREATE TOO MUCH TRAFFIC AND WRECK THE AREA'S TRANQUILITY NEIGHBORS SAY ONE OF THE NOLTES' BIGGEST CRITICS IS NEIGHBOR ROBERT J BUSSE AN ATTORNEY WHO HAS A HISTORY OF DISPUTES WITH THE ACTOR AND HIS WIFE WE HAVE NOT GOTTEN ALONG THAT'S NO SECRET CONCEDES MR BUSSE IN 1988 FOR INSTANCE MRS NOLTE LODGED A PROTEST AGAINST MR BUSSE'S REQUEST TO REALIGN HIS FOUR LOTS MR BUSSE DROPPED HIS PLANS NOR WAS MR BUSSE PLEASED WHEN A TRUCK UNLOADING EXERCISE EQUIPMENT FOR THE NOLTES JACKKNIFED ON THE ROAD BLOCKING MR BUSSE'S PROPERTY OTHER NEIGHBORS WONDER WHY THE NOLTES WANT TO BUILD THE SUBDIVISION LORD I CAN'T REALLY BELIEVE THAT MONEY IS ONE OF HIS NEEDS SAYS NEIGHBOR NICK BARTH WHO BELIEVES MR NOLTE IS AT HIS ZENITH R BRAWLEY TRACY THE NOLTES' ATTORNEY SAYS HE DOESN'T KNOW WHY HIS CLIENTS WANT TO BUILD A SUBDIVISION BUT HE BELIEVES THE ROAD HAS PLENTY OF ROOM FOR THE ADDITIONAL TRAFFIC AND HE SAYS HE HAS NO KNOWLEDGE OF ANY FORMAL PROTEST BY NEIGHBORS A HEARING HAS BEEN DELAYED UNTIL APRIL 7 FROM MARCH 3 NEIGHBORHOOD DISPUTES ASIDE CITY RESIDENTS ARE GENERALLY GLAD TO HAVE MR NOLTE AROUND EVEN THOUGH HE'S HERE INFREQUENTLY WE'RE REALLY PROUD THAT HE LIVES HERE SAYS MAYOR KENT HALL HE HAS COMMENTED THAT THE REASON HE LIKES CHARLESTON IS THAT NOBODY PAYS ATTENTION TO HIM 9302040143 930204 MARKETING & MEDIA TIMES MIRROR POSTS SHARPLY WIDER LOSS FOR 4TH QUARTER BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TIMES MIRROR CO REPORTED A FOURTHQUARTER NET LOSS OF 617 MILLION SHARPLY WIDER THAN A YEAR EARLIER AS THE MEDIA CONCERN TOOK 1233 MILLION IN ONETIME CHARGES FOR VOLUNTARY EMPLOYEE REDUCTION PROGRAMS TIMES MIRROR SAID DIFFICULT CONDITIONS PERSIST IN ITS MAJOR NEWSPAPER MARKETS LOS ANGELES AND NEW YORK BUT NOTED THAT REVENUES AND OPERATING PROFITS ROSE IN ITS CABLE AND BROADCAST TELEVISION OPERATIONS THE LATEST QUARTERLY LOSS EQUAL TO 48 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 13 MILLION OR 10 CENTS A SHARE REVENUE ROSE 37 TO 101 BILLION FROM 9744 MILLION A YEAR EARLIER TIMES MIRROR'S LOSSES IN BOTH YEARS HAVE BEEN THE RESULT OF CHARGES FOR EMPLOYEE REDUCTIONS THE LOS ANGELESBASED CONCERN SAID THE LATEST QUARTER INCLUDED 525 MILLION OR 41 CENTS A SHARE IN CHARGES FOR A VOLUNTARY SEVERANCE PROGRAM THAT WILL REDUCE BY 668 THE CURRENT 7500 PEOPLE EMPLOYED AT THE COMPANY'S FLAGSHIP LOS ANGELES TIMES THE LATEST PERIOD ALSO INCLUDED A CHARGE OF 58 MILLION OR 45 CENTS A SHARE REFLECTING PLANNED JOB CUTS AT THE COMPANY'S MATTHEW BENDER UNIT A PUBLISHER OF LEGAL INFORMATION THAT HAS BEEN HURT BY THE DOWNTURNS AT MANY OF THE NATION'S LAWFIRMS COMPANY OFFICIALS SAID EMPLOYMENT AT MATTHEW BENDER IS EXPECTED TO DECLINE TO ABOUT 1100 BY YEAR END FROM ABOUT 1600 AT THE BEGINNING OF LAST YEAR THE LOSSES HAD BEEN ANTICIPATED AND TIMES MIRROR STOCK ROSE 150 A SHARE IN YESTERDAY'S BUOYANT MARKET TO CLOSE AT 3375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING IN THE YEAREARLIER FOURTH QUARTER TIMES MIRROR HAD CHARGES TOTALING 673 MILLION OR 51 CENTS A SHARE REFLECTING EMPLOYEE REDUCTION PROGRAMS AT THE LOS ANGELES TIMES AND BALTIMORE SUN NEWSPAPERS AND THE WRITEDOWN OF A SECURITY RELATED TO THE COMPANY'S DENVER POST NEWSPAPER WITHOUT THE CHARGES TIMES MIRROR SAID ITS LATESTQUARTER PROFIT SLID SLIGHTLY TO 518 MILLION OR 40 CENTS A SHARE FROM 536 MILLION OR 42 CENTS A SHARE A YEAR EARLIER ANALYSTS SAID THE RESULTS WERE GENERALLY IN LINE WITH EXPECTATIONS ALTHOUGH THE CHARGE FOR EMPLOYEE SEVERANCE AT THE LOS ANGELES TIMES WAS LARGER THAN EXPECTED WHEN THE PROGRAM WAS FIRST ANNOUNCED IN DECEMBER THE LOS ANGELES TIMES HAS A DAILY CIRCULATION OF MORE THAN ONE MILLION COPIES 9302040142 930204 BUSINESS BRIEFS HILTON HOTELS CORP'S PLAN TO LAUNCH A 75 MILLION RIVERBOAT CASINO ON THE MISSOURI RIVER IN THE SPRING OF 1994 WAS APPROVED BY VOTERS IN KANSAS CITY MO SPECTRANETICS CORP NEGOTIATED A NONEXCLUSIVE LICENSE TO CERTAIN PATENTS FOR LASER ANGIOPLASTY HELD BY PILLCO LIMITED PARTNERSHIP TERMS WEREN'T DISCLOSED BANKAMERICA CORP GOT APPROVAL FROM THE PEOPLE'S BANK OF CHINA TO UPGRADE ITS GUANGZHOU REPRESENTATIVE OFFICE TO A FULLSERVICE BRANCH MAKING IT THE FIRST US BANK TO HAVE A BRANCH IN GUANGZHOU AMERICAN ISRAELI PAPER MILLS LTD ENTERED INTO AN AGREEMENT TO ACQUIRE ALL OF THE BUSINESS AND ASSETS OF MOLETT PAPER MILLS LTD FOR 38 MILLION PHYSICIANS CLINICAL LABORATORY INC ACQUIRED SAN JOAQUIN DIAGNOSTICS FOR 19 MILLION INTERNATIONAL LEISURE ENTERPRISES INC ACQUIRED 714 OF THE COMMON STOCK OF ARIZONABASED RED ROCK COLLECTION INC TERMS WEREN'T DISCLOSED TELRAD TELECOMMUNICATIONS CORP RECEIVED A THREEYEAR 120 MILLION CONTRACT FROM ISRAEL'S TELEPHONE COMPANY TO PROVIDE DIGITAL CENTRAL OFFICE EXCHANGES 9302040141 930204 INTERNATIONAL ELECTROLUX HALVES DIVIDEND FOR 1992 PRETAX PROFIT FALLS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB ELECTROLUX CUT ITS 1992 DIVIDEND IN HALF THE FIRST REDUCTION OF THE ANNUAL PAYOUT IN THE SWEDISH APPLIANCE MAKER'S 90YEAR HISTORY ELECTROLUX HAS HAD THREE WEAK YEARS IN A ROW WITH NET PROFIT LOWER THAN OUR DIVIDEND PAYOUT CHAIRMAN ANDERS SCHARP SAID IN VIEW OF THAT AND THE UNCERTAINTY EVERYBODY FEELS ABOUT WHERE EUROPE IS HEADED THE BOARD DECIDED TO BE CAUTIOUS AND HALVE THE DIVIDEND TO 625 SWEDISH KRONOR A SHARE FROM 125 KRONOR LAST YEAR IN A FINANCIAL REPORT DISTORTED BY A SPATE OF ONETIME CHARGES AND GAINS ELECTROLUX REPORTED THAT 1992 PRETAX EARNINGS WERE ESSENTIALLY FLAT AT ONE BILLION KRONOR 1346 MILLON A RESPECTABLE ENOUGH PERFORMANCE CONSIDERING THE RECESSIONS AFFECTING THE COMPANY'S KEY MARKETS BUT OFFERING AN UNUSUAL CALCULATION ELECTROLUX SAID THAT ITS ADJUSTED OPERATING PROFIT EXCLUDING ONETIME ITEMS SKIDDED 137 LAST YEAR TO 225 BILLION KRONOR FROM 261 BILLION KRONOR IN 1991 MOREOVER THE COMPANY SAW A CONSIDERABLE DETERIORATION DURING THE LATEST QUARTER EXCLUDING ONETIME FACTORS PRETAX PROFIT ACTUALLY DROPPED MORE THAN 20 IN THE FOURTH QUARTER COMPANY OFFICIALS SAID SALES EDGED UP 1 DURING THE FOURTH QUARTER TO 2145 BILLION KRONOR MAINLY REFLECTING THE KRONA'S DEPRECIATION AGAINST OTHER INTERNATIONAL CURRENCIES DURING THE LAST SIX WEEKS OF 1992 FULLYEAR SALES ROSE TO 804 BILLION KRONOR A 2 GAIN ADJUSTED FOR ACQUISITIONS AND DIVESTMENTS ELECTROLUX DIDN'T DISCLOSE OPERATING PROFIT FOR INDIVIDUAL DIVISIONS BUT OFFICIALS ACKNOWLEDGED THAT OPERATING PROFIT DECLINED AT THE FLAGSHIP HOUSEHOLD APPLIANCE DIVISION APPLIANCE DIVISION SALES ROSE 127 IN THE FOURTH QUARTER TO 1239 BILLION KRONOR AGAIN MAINLY DUE TO CURRENCY FLUCTUATIONS BUT ROSE A SLIMMER 23 FOR THE FULL YEAR TO 4651 BILLION KRONOR THE DECLINE IN APPLIANCE DIVISION PROFIT REFLECTED NONRECURRING COSTS FOR FACTORY CLOSURES AND LAYOFFS IN GERMANY AND SPAIN DURING THE FOURTH QUARTER ELECTROLUX SHARES FELL 13 KRONOR OR 6 TO 212 KRONOR ON THE STOCKHOLM EXCHANGE THE NEWS DRAGGED DOWN THE SWEDISH MARKET AS A WHOLE AS THE ELECTROLUX RESULTS WERE WIDELY SEEN AS A LEADING INDICATOR OF ECONOMIC RECOVERY 9302040140 930204 FINANCING BUSINESS USX CORP USX CORP PITTSBURGH SAID IT WILL REDEEM ALL OF ITS 7 3/4 SINKING FUND DEBENTURES DUE 2001 THE COMPANY CURRENTLY HAS 33952 MILLION AGGREGATE PRINCIPAL AMOUNT OF THE DEBT OUTSTANDING THE REDEMPTION DATE IS MARCH 15 THE STEEL PETROLEUM AND NATURAL GAS CONCERN SAID THE DEBT WILL BE REDEEMED AT A PRICE OF 10093 OF THE PRINCIPAL AMOUNT PLUS INTEREST ACCRUED THROUGH MARCH 15 USX CORP WILL BE THE PAYING AGENT FOR THE REDEMPTION 9302040138 930204 FINANCING BUSINESS QUNO CORP QUNO CORP ST CATHARINES ONTARIO THE NEWSPRINT UNIT OF TRIBUNE CO OF CHICAGO SAID IT FILED FOR A 135 MILLION CANADIAN DOLLAR US1068 MILLION INITIAL PUBLIC OFFERING REPRESENTING 27 OF QUNO'S COMMON EQUITY ON A FULLY DILUTED BASIS THE OFFERING OF NINE MILLION COMMON SHARES AT C15 EACH IS EXPECTED TO CLOSE ON FEB 17 NET PROCEEDS FROM THE OFFERING ARE TO BE USED TO REPAY DEBT OWED TO OR GUARANTEED BY TRIBUNE A NEWSPAPER AND BROADCASTING COMPANY LEAD UNDERWRITER FOR THE OFFERING IS WOOD GUNDY INC 9302040137 930204 CHINA APPEARS TO GET STRICT ON BUYING OF B' SHARES HONG KONG CHINA'S SECURITIES REGULATORS HAVE BEGUN A CRACKDOWN ON CHINESE INVESTORS BUYING STOCKS ORIGINALLY INTENDED FOR FOREIGNERS SECURITIES ANALYSTS IN HONG KONG SAID RUMORS ABOUT THE CRACKDOWN SENT THE CREDIT LYONNAIS SHANGHAI B INDEX TUMBLING 7388 POINTS OR 7 TO END AT 98102 WEDNESDAY THE ANALYSTS SAID SHANGHAI BROKERS HAD RECEIVED CALLS FROM THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK ON WEDNESDAY ORDERING THEM TO STOP SELLING CLASS B SHARES TO CHINESE INVESTORS THE CENTRAL BANK WHICH ACTS AS A REGULATOR FOR CHINA'S FLEDGLING STOCK EXCHANGES COULDN'T BE REACHED FOR A COMMENT ALTHOUGH ILLEGAL PURCHASE OF B SHARES BY SHANGHAI INVESTORS HAS INCREASED STEADILY SINCE LATE LAST YEAR HELPING FUEL A 30 SURGE IN CLASS B SHARE PRICES SINCE THE END OF DECEMBER THE ANALYSTS SAID INVESTORS LURED BY PRICES THAT TRADED AT AS MUCH AS 70 DISCOUNTS TO THOSE OF SIMILAR CLASS A SHARES WERE APPARENTLY EMBOLDENED BY REGULATORS' RELAXATION OF RULES AND EXPECTATIONS THAT THE B SHARE MARKET WOULD EVENTUALLY BE OPENED TO THEM THIS IS PROBABLY GOING TO HURT THE MARKET IN THE SHORT TERM BUT I'M NOT TOO BEARISH BECAUSE SOME COMPANIES ARE LIKELY TO REPORT STRONGERTHANEXPECTED RESULTS IN MARCH SAYS KALINA IP AN ANALYST AT HG ASIA LTD 9302040136 930204 LETTERS TO THE EDITOR ELUSIVE SCHOLAR IN YOUR JAN 7 PAGEONE ARTICLE JAPAN'S NARUHITO DESPITE HIS HAIRCUT FINALLY FINDS A BRIDE I THINK YOUR READERS WOULD HAVE BEEN INTERESTED IN THE TITLE OF MASAKO OWADA'S THESIS EXTERNAL ADJUSTMENT TO IMPORT PRICE SHOCK OIL IN JAPANESE TRADE AND THE FACT THAT SHE RECEIVED A MAGNA FOR IT HERS WAS JUST NOT A ROUTINE DEGREE OF COURSE THE HARVARD ALUMNI DIRECTORY DOESN'T LIST HER ADDRESS AND MERELY STATES REQUESTED NO MAIL APPARENTLY THE CROWN PRINCE KNEW HOW TO REACH HER 9302040135 930204 POLITICS & POLICY WOOD JUDGE IN MILKEN TRIAL EMERGES AS TOP CANDIDATE FOR ATTORNEY GENERAL BY JEFFREY H BIRNBAUM AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FEDERAL DISTRICT JUDGE KIMBA WOOD OF NEW YORK HAS EMERGED AS THE LEADING CANDIDATE FOR ATTORNEY GENERAL ACCORDING TO WHITE HOUSE AND DEMOCRATIC OFFICIALS MS WOOD IMPRESSED PRESIDENT CLINTON DURING AN INTERVIEW FRIDAY AND SHE CONTINUES TO BE AT THE TOP OF EVERSHORTENING LISTS CIRCULATING IN THE WHITE HOUSE AN ANNOUNCEMENT IS EXPECTED FAIRLY SOON THOUGH A FINAL DECISION APPARENTLY HASN'T BEEN REACHED MS WOOD 49 YEARS OLD IS PERHAPS BEST KNOWN AS THE JUDGE WHO HEARD THE SECURITIES FRAUD CASE AGAINST JUNKBOND KING MICHAEL MILKEN IN 1990 SHE SENTENCED MR MILKEN FORMERLY WITH DREXEL BURNHAM LAMBERT INC TO 10 YEARS IN PRISONA SENTENCE THAT SOME CRITICIZED AS TOO HARSH IN AUGUST HOWEVER SHE CUT MR MILKEN'S PRISON TIME TO A TOTAL OF TWO YEARS CITING HIS COOPERATION WITH PROSECUTORS THAT DECISION WAS CRITICIZED AS TOO LENIENT DEMOCRATIC OFFICIALS BELIEVE THE CRITICISMS ON BOTH ENDS OF THE SENTENCING QUESTION TEND TO CANCEL EACH OTHER OUT THEY PREFER TO FOCUS INSTEAD ON WHAT THEY SEE AS JUDGE WOOD'S EXEMPLARY TENURE ON THE BENCH MOREOVER THE SENATE APPROVED MS WOOD AS A JUDGE NOT LONG AGO IF CHOSEN SHE PROBABLY WOULD SAIL SMOOTHLY THROUGH THE CONFIRMATION PROCESS MS WOOD IS A DEMOCRAT BUT SHE WAS APPOINTED TO THE BENCH IN 1988 BY RONALD REAGAN MR CLINTON HAS BEEN LOOKING FOR AN ATTORNEY GENERAL SINCE ZOE BAIRD A CONNECTICUT CORPORATE LAWYER WITHDREW HER NAME FOLLOWING A PUBLIC OUTCRY OVER HER HIRING OF ILLEGAL IMMIGRANTS AND LATE PAYMENT OF THEIR SOCIAL SECURITY TAXES WHEN MS WOOD THE MOTHER OF A SIXYEAROLD SON WENT TO THE WHITE HOUSE SHE TOOK HER CHILDCARE RECORDS WITH HER TO DEMONSTRATE SHE HAD PAID SOCIAL SECURITY TAXES FOR HER HOUSEHOLD HELP IN PRIVATE PRACTICE JUDGE WOOD SPECIALIZED IN ANTITRUST LAW AND TRADE REGULATION BUT SHE ALSO HANDLED SEXDISCRIMINATION AND PRODUCTLIABILITY CASES SHE DID UNPAID WORK FOR THE AMERICAN CIVIL LIBERTIES UNION REPRESENTING A FEMALE PROFESSOR WHO CHARGED HOFSTRA UNIVERSITY IN NEW YORK WITH GENDER DISCRIMINATION EARLY IN HER CAREER SHE WORKED FOR THE FEDERAL OFFICE OF ECONOMIC OPPORTUNITY IN WASHINGTON AS A LAWYER REPRESENTING LOWINCOME PEOPLE ALAN DERSHOWITZ A HARVARD LAW SCHOOL PROFESSOR WHO HAS KNOWN JUDGE WOOD SINCE HER STUDENT DAYS THERE SAID SHE IS NOT A VERY POLITICAL PERSON SHE WILL BRING EVERYTHING BUT A POLITICAL DIMENSION TO THAT OFFICE WHICH IS EXACTLY RIGHT SAID MR DERSHOWITZ WHO REPRESENTED MR MILKEN WHAT THAT OFFICE SORELY NEEDS IS DEPOLITICALIZATION ANOTHER IMPORTANT JOB ASSISTANT TREASURY SECRETARY FOR TAX POLICY APPEARS LIKELY TO GO TO NEW YORK TAX ATTORNEY LESLIE SAMUELS ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE SELECTION MR SAMUELS 50 IS A PARTNER AT CLEARY GOTTLIEB STEEN & HAMILTON THE ADMINISTRATION HAD BEEN HAVING TROUBLE FILLING THE TAXPOLICY POST IN PART BECAUSE OF NEW LOBBYING RULES THAT WOULD PRECLUDE THE ASSISTANT SECRETARY FROM PRACTICING BEFORE THE INTERNAL REVENUE SERVICE FOR FIVE YEARS AFTER LEAVING GOVERNMENT IN ADDITION SOME CANDIDATES REPORTEDLY EXPRESSED CONCERNS THAT TREASURY SECRETARY LLOYD BENTSEN WAS TRYING TO FILL AS MANY AS FOUR OTHER SENIOR TAX POSITIONS WITH STAFF MEMBERS FROM THE SENATE FINANCE COMMITTEE WHICH HE USED TO HEAD IN THE PAST THE ASSISTANT SECRETARY HAS BEEN ABLE TO BRING IN HIS OWN PEOPLE SAMUEL SESSIONS WHO SERVED AS CHIEF TAX COUNSEL ON THE FINANCE COMMITTEE AND ONCE WORKED AT CLEARY GOTTLIEB HIMSELF IS WIDELY EXPECTED TO BECOME THE DEPUTY ASSISTANT SECRETARY FOR TAX POLICY THE POST JUST UNDER THE ONE MR SAMUELS IS EXPECTED TO FILL MR SAMUELS COULDN'T BE REACHED FOR COMMENT AND TREASURY SPOKESMAN JACK DEVORE DECLINED TO COMMENT SEPARATELY PRESIDENT CLINTON FILLED A NUMBER OF TOP JOBS AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HE NOMINATED TERRY DUVERNAY A TOP GEORGIA HOUSING OFFICAL TO BE DEPUTY SECRETARY OF THE DEPARTMENT MR DUVERNAY EXECUTIVE DIRECTOR OF THE GEORGIA HOUSING AND FINANCE AUTHORITY WAS CHIEF OF STAFF AT HUD DURING THE LATE 1970S HE ALSO WORKED AS EXECUTIVE DIRECTOR OF THE MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY HE JOINED THE GEORGIA AUTHORITY IN 1991 AND SERVED AS URBAN AFFAIRS ADVISER TO DEMOCRATIC GOV ZELL MILLER ANDREW CUOMO SON OF NEW YORK GOV MARIO CUOMO WAS NOMINATED TO BE AN ASSISTANT HUD SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT MR CUOMO IS THE FOUNDER AND PRESIDENT OF HOUSING ENTERPRISE FOR THE LESS PRIVILEGED HELP WHICH PROVIDES AID TO HOMELESS PEOPLE HE ALSO SERVED AS HEAD OF THE NEW YORK CITY COMMISSION ON THE HOMELESS AT HUD HE WILL HANDLE HOMELESS PROBLEMS THE PRESIDENT NOMINATED ROBERTA ACHTENBERG TO BECOME ASSISTANT SECRETARY FOR FAIR HOUSING AND EQUAL OPPORTUNITY A MEMBER OF THE SAN FRANCISCO BOARD OF SUPERVISORS MS ACHTENBERG HAS WORKED AS A CIVIL RIGHTS ATTORNEY LAW PROFESSOR AND EXECUTIVE DIRECTOR OF THE NATIONAL CENTER FOR LESBIAN RIGHTS JEAN NOLAN FORMERLY DIRECTOR OF COMMUNICATIONS FOR THE ENTERPRISE FOUNDATION A NATIONAL FOUNDATION THAT PROVIDES HOUSING FOR LOWINCOME PEOPLE WAS NOMINATED TO BE ASSISTANT HUD SECRETARY FOR PUBLIC AFFAIRS JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9302040133 930204 SERVICE CORP INTERNATIONAL HOUSTON SERVICE CORP INTERNATIONAL A FUNERALSERVICE COMPANY SAID IT WILL REDEEM ITS 6 1/2 CONVERTIBLE SUBORDINATED DEBENTURES DUE APRIL 15 2011 THE REDEMPTION PRICE WILL BE 10260 PLUS ACCRUED INTEREST THE DATE OF THE REDEMPTION IS FEB 25 9302040132 930204 WHO'S NEWS MURPHY OIL CORP MURPHY OIL CORP EL DORADO ARK CLAIBORNE P DEMING EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AND R MADISON MURPHY EXECUTIVE VICE PRESIDENT WERE NAMED DIRECTORS OF THIS ENERGY CONCERN INCREASING THE BOARD TO 12 MEMBERS IN ADDITION MR MURPHY WAS MADE CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER HE HAD BEEN CHIEF FINANCIAL OFFICER SEPARATELY STEPHEN A COSSE GENERAL COUNSEL WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL 9302040131 930204 CANADIAN GOVERNMENT BOND SALE THE AVERAGE BID WAS 7941 FOR A PRICE EQUIVALENT OF 95186 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9302040130 930204 THREE EXQUAD OFFICIALS PLEAD GUILTY TO CHARGES BALTIMORE THREE FORMER EXECUTIVES OF QUAD PHARMACEUTICALS INC A NOWDEFUNCT MAKER OF INJECTABLE GENERIC DRUGS PLEADED GUILTY TO DEFRAUDING THE GOVERNMENT IN CONNECTION WITH QUAD'S APPLICATIONS FOR DRUG APPROVALS ACCORDING TO THE US ATTORNEY'S OFFICE HERE ONE OF THE FORMER EXECUTIVES DULAL CHATTERJI PLEADED GUILTY TO CONSPIRACY AS WELL AS OBSTRUCTING AN INVESTIGATION BY THE FOOD AND DRUG ADMINISTRATION THE OTHER TWO FORMER OFFICIALS ANDREW MORRIS AND JAN THOMAS STURM PLEADED GUILTY TO OTHER CHARGES MR CHATTERJI OF POTOMAC MD WAS A VICE PRESIDENT AND PART OWNER OF QUAD WHICH BEGAN OPERATIONS IN 1985 QUAD WAS SHUT DOWN IN 1991 BY ITS PARENT PHARMACEUTICAL RESOURCES INC SPRING VALLEY NY MR MORRIS HAD ONCE SERVED AS MANAGER OF QUAD'S RESEARCH AND DEVELOPMENT LABORATORY MR STURM WAS A VICE PRESIDENT FEDERAL PROSECUTORS SAID THAT IN ITS RUSH TO GET AS MANY FDA MARKETING APPROVALS AS POSSIBLE FOR ITS DRUGS QUAD AND ITS OFFICIALS REPEATEDLY LIED TO THE FDA AND CONCEALED UNFAVORABLE DATA ABOUT ITS PRODUCTS 9302040129 930204 MCDONNELL DOUGLAS SEEKS MEETING ON MOODY'S MOVE ST LOUIS MCDONNELL DOUGLAS CORP SAID IT IS SEEKING A MEETING WITH MOODY'S INVESTOR SERVICE INC TO URGE THE RATING AGENCY TO CHANGE ITS RECENT DOWNGRADES ON 5 BILLION OF THE COMPANY'S DEBT CALLING MOODY'S CONCERNS OVERBLOWN WE ARE SHOCKED PARTICULARLY IN VIEW OF OUR RECENT PERFORMANCE AND THE FACT THAT THE MAJORITY OF OUR PROBLEMS WERE PUT TO REST IN 1992 POSITIONING US FOR A YEAR OF STRONGER CASH FLOWS REDUCED DEBT AND IMPROVED EARNINGS MCDONNELL DOUGLAS SAID OF MOODY'S ACTION IN ITS DOWNGRADES MOODY'S CITED THE DETERIORATING OUTLOOK FOR MCDONNELL DOUGLAS'S DEFENSE AND COMMERCIAL AIRCRAFT BUSINESSES AND WARNED THAT THE COMPANY MAY HAVE TO LEAVE THE COMMERCIAL AIRCRAFT BUSINESS ALTOGETHER IF IT DOESN'T RECEIVE SIZABLE NEW ORDERS MCDONNELL DOUGLAS SAID ITS COMMERCIAL AIRCRAFT BUSINESS HAS BEEN PROFITABLE FOR NINE CONSECUTIVE QUARTERS AND THAT THE MD11 WIDEBODY AIRCRAFT IS TURNING CASH POSITIVE IT ADDED THAT 10 OF ITS 11 LARGEST GOVERNMENT PROGRAMS AS A GROUP PRODUCED OPERATING MARGINS OF NEARLY 10 IN 1992 AND THAT THE OTHER MAJOR PROGRAM THE C17 MILITARY TRANSPORT WILL BECOME PROFITABLE THIS YEAR THE COMPANY SAID IT WILL CONTINUE TO SELL NONSTRATEGIC ASSETS 9302040128 930204 INTERNATIONAL FRENCH PREMIER GOT LOAN FROM INDICTED FINANCIER PARIS FRENCH PREMIER PIERRE BEREGOVOY ACKNOWLEDGED RECEIVING A 180000 INTERESTFREE LOAN IN 1986 FROM A FINANCIER WHO WAS LATER CHARGED WITH INSIDER TRADING THE PRIME MINISTER WHO WAS AN OPPOSITION MEMBER OF PARLIAMENT AT THE TIME DENIED ANY IMPROPRIETY NO LAW APPARENTLY WAS BROKEN BUT THE DISCLOSURE IS LIKELY TO ONCE AGAIN EMBARRASS THE RULING SOCIALIST PARTY ALREADY MIRED IN FUNDING SCANDALS JUST SEVEN WEEKS BEFORE A GENERAL ELECTION IN WHICH THE PARTY IS RUNNING BEHIND THE INVESTIGATIVE SATIRICAL WEEKLY LE CANARD ENCHAINE SAID MR BEREGOVOY WHO HAS STAKED HIS REPUTATION ON FIGHTING CORRUPTION GOT THE LOAN IN SEPTEMBER 1986 FROM ROGERPATRICE PELAT A CLOSE FRIEND OF PRESIDENT FRANCOIS MITTERRAND MR BEREGOVOY HAD BEEN FINANCE MINISTER UNTIL MARCH 1986 ELECTIONS AND RETURNED TO THE SAME OFFICE IN JUNE 1988 MR PELAT DIED IN MARCH 1989 AFTER BEING INDICTED IN A STOCK SCANDAL INVOLVING MR BEREGOVOY'S CLOSEST AIDE AT THE FINANCE MINISTRY MR BEREGOVOY SAID THE LOAN TO BUY HIS PARIS APARTMENT HAD BEEN PROPERLY DECLARED TO A NOTARY AND TO TAX AUTHORITIES AND HE HAD REPAID IT AHEAD OF TIME AFTER MR PELAT DIED SEVERAL PEOPLE WERE INDICTED IN THE INSIDERTRADING SCANDAL WHICH ERUPTED AFTER FRENCH STATEOWNED ALUMINUM COMPANY PECHINEY SA ACQUIRED TRIANGLE INDUSTRIES INC OF THE US 9302040127 930204 BOMBAY CO SHARE AUTHORIZATION FORT WORTH TEXAS BOMBAY CO SAID ITS BOARD APPROVED DOUBLING ITS AUTHORIZED COMMON STOCK TO 50 MILLION SHARES THE SPECIALTY RETAILER SAID IT HAD NO IMMEDIATE PLANS FOR USE OF THE ADDITIONAL SHARES BUT WANTED TO MAINTAIN MAXIMUM FLEXIBILITY AS IT PURSUED ITS GROWTH PLANS AS OF DEC 27 THE COMPANY HAD ABOUT 147 MILLION SHARES OUTSTANDING IN EACH OF ITS PAST FIVE FISCAL YEARS BOMBAY HAS POSTED SALES GAINS OF BETTER THAN 20 9302040126 930204 AIDE TO EXSEN BROOKE IS SENTENCED TO PROBATION WASHINGTON AN AIDE TO FORMER MASSACHUSETTS SEN EDWARD BROOKE WAS SENTENCED TO TWO YEARS' PROBATION FOR HELPING MR BROOKE MAKE ALLEGEDLY FALSE STATEMENTS ABOUT INFLUENCEPEDDLING AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT US DISTRICT JUDGE THOMAS PENFIELD JACKSON ALSO ORDERED THE AIDE ELAINE RICHARDSON WHO WORKED AS EXECUTIVE ASSISTANT TO MR BROOKE TO PERFORM 200 HOURS OF COMMUNITY SERVICE AND TO PAY A 500 FINE IN NOVEMBER MS RICHARDSON PLEADED GUILTY TO ONE COUNT OF AIDING AND ABETTING MR BROOKE SHE ADMITTED SHE REMAINED SILENT WHEN MR BROOKE MADE ALLEGEDLY FALSE STATEMENTS DURING A JOINT INTERVIEW IN SEPTEMBER 1988 WITH THE FEDERAL BUREAU OF INVESTIGATION AND AGENTS OF THE HUD INSPECTOR GENERAL THE INVESTIGATORS WERE LOOKING INTO ALLEGATIONS OF ABUSE IN THE AWARDING OF FEDERAL FUNDS THROUGH HUD'S MODERATE REHABILITATION PROGRAM WHICH PROVIDES SUBSIDIES FOR LOWINCOME HOUSING THE 1988 INTERVIEW INVOLVED MR BROOKE'S WORK AS A PRIVATE CONSULTANT IN WASHINGTON AFTER LEAVING THE SENATE MS RICHARDSON'S PLEA AGREEMENT SAID MR BROOKE USED HIS INFLUENCE WITH SENIOR HUD OFFICIALS TO OBTAIN 145 MILLION IN SUBSIDIES FOR LOWINCOME HOUSING IN LOWELL MASS MR BROOKE HASN'T BEEN CHARGED WITH ANY WRONGDOING ARLIN ADAMS THE INDEPENDENT COUNSEL HANDLING THE HUD CASE SAID MS RICHARDSON IS COOPERATING FULLY WITH THE INVESTIGATION 9302040125 930204 DELTA JANUARY TRAFFIC ROSE 55 ATLANTA DELTA AIR LINES SAID ITS JANUARY TRAFFIC ROSE 55 THE CARRIER SAID IT FLEW 595 BILLION REVENUE PASSENGER MILES FOR THE MONTH UP FROM 564 BILLION IN JANUARY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE DELTA SAID ITS LOAD FACTOR FOR THE MONTH INCREASED SLIGHTLY TO 5382 FROM 5304 9302040124 930204 INTERNATIONAL NUMBER OF AUSTRALIAN TOURISTS CANBERRA THE NUMBER OF OVERSEAS TOURISTS ARRIVING IN AUSTRALIA ROSE A SEASONALLY ADJUSTED 44 TO 232400 IN NOVEMBER FROM 222400 IN OCTOBER AND FROM 124 IN NOVEMBER 1991 THE BUREAU OF STATISTICS SAID NOVEMBER'S TOTAL IS THE HIGHEST IN MORE THAN 12 MONTHS JAPAN REMAINED THE PRIMARY SOURCE OF TOURISTS IN NOVEMBER ACCOUNTING FOR 21 OF THE TOTAL THAT LEVEL IS UNCHANGED FROM A YEAR EARLIER NEW ZEALAND RANKED SECOND WITH 17 DOWN SLIGHTLY FROM 19 IN NOVEMBER 1991 9302040123 930204 INTERNATIONAL GERMANY FREEZES DEFENSE CONTRACTS DROPS SPY PLANE SPECIAL TO THE WALL STREET JOURNAL BONN GERMAN DEFENSE MINISTER VOLKER RUEHE ANNOUNCED A GENERAL FREEZE ON DEFENSE CONTRACTS AND INFRASTRUCTURE PROJECTS FOR THE GERMAN ARMED FORCES WHILE MR RUEHE CITED BUDGETARY REASONS IT ALSO APPEARED TO BE AN EFFORT TO QUICKLY CLOSE THE BOOKS ON A POLITICAL SCANDAL THAT ERUPTED THIS WEEK OVER A CONTROVERSIAL 18 BILLION SPY PLANE INDEED AS PART OF THE CUTBACKS MR RUEHE SAID THE GOVERNMENT WILL ABANDON DEVELOPMENT OF THE EGRETT SPY PLANE ALSO KNOWN BY ITS GERMAN ACRONYM LAPAS THE EGRETT TROUBLE ERUPTED EARLIER THIS WEEK AFTER THE NEWS MAGAZINE DER SPIEGEL ALLEGED THAT KICKBACK PAYMENTS HAD BEEN MADE TO A RETIRED GERMAN GENERAL AND TO FINANCE MINISTER THEO WAIGEL'S CHRISTIAN SOCIAL UNION THE ARTICLE ALSO SAID THE SURVEILLANCE SYSTEM FOR THE SPY PLANE DOESN'T FUNCTION PROPERLY THE SPY PLANE WAS BEING DESIGNED BY GROB AIR & SPACE TRAVEL GMBH A CLOSELY HELD FIRM BONN STATE PROSECUTORS HAVE BEEN INVESTIGATING WHETHER GROB AIR HAD SOUGHT TO INFLUENCE THE CONTRACT BY ENTERTAINING FORMER GERMAN AIR FORCE COMMANDERINCHIEF EBERHARD EIMLER AND BAVARIAN GOVERNOR MAX STREIBL BOTH MEN HAVE DENIED ANY WRONGDOING HIT HARD BY THE DECISION TO SHELVE THE PLANE IS ESYSTEMS INC OF DALLAS THE MAIN CONTRACTOR FOR THE EGRETT'S SURVEILLANCE EQUIPMENT ESYSTEMS HAD ANTICIPATED SIGNING A 225 MILLION CONTRACT AND ANALYSTS ESTIMATED THE DEAL WOULD HAVE ADDED MORE THAN 600 MILLION TO THE COMPANY'S REVENUES FOR THE REST OF THE DECADE ESYSTEMS SHARES FELL ON THE NEWS CLOSING AT 4025 DOWN 175 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR RUEHE ISSUED THE BAN ON ALL NEW WEAPONS ACQUISITIONS AFTER HE SPOKE AT A HEARING OF PARLIAMENT'S DEFENSE AFFAIRS COMMITTEE THE HEARING WAS CALLED BY THE OPPOSITION SOCIAL DEMOCRATS TO SEE IF THE GOVERNMENT MISHANDLED SUSPICIONS OF CORRUPTION IN THE EGRETT PROGRAM MR RUEHE SAID THE FREEZE WHICH WILL STOP FINANCING OF ONGOING CONTRACTS COULD BE LIFTED ONLY ON HIS PERSONAL INSTRUCTION HE SAID AN ADDITIONAL 860 MILLION MARKS 5228 MILLION NEEDS TO BE SAVED IN THE DEFENSE BUDGET THIS YEAR AND THAT FURTHER CUTS WOULD BE NEEDED NEXT YEAR HE ALSO SAID GERMAN TROOP STRENGTH MAY HAVE TO BE REDUCED BELOW THE 370000 MEN SET BY INTERNATIONAL TREATIES ON GERMAN UNIFICATION THE SAVINGS ARE PART OF THE GOVERNMENT'S EFFORT TO PAY FOR THE COSTS OF UNIFICATION MR RUEHE SAID HOWEVER THE CUTS ALSO FIT IN WITH A GENERAL EUROPEAN TREND TOWARD SCALING BACK MILITARY OPERATIONS NOW THAT THE COLD WAR IS OVER 9302040122 930204 INTERNATIONAL ERICSSON IN THAI AGREEMENT BANGKOK THAILAND ERICSSON AUSTRALIA PTY LTD REACHED AN AGREEMENT TO SUPPLY BURMA'S FIRST MOBILETELEPHONE SYSTEM TO BE LOCATED IN THE CAPITAL RANGOON THE SYSTEM WHOSE INITIAL COST WILL BE ABOUT 4 MILLION IS INFINITELY EXPANDABLE ACCORDING TO AN OFFICIAL AT THE COMPANY'S THAI SUBSIDIARY ERICSSON COMMUNICATIONS THAILAND CO BOTH COMPANIES ARE UNITS OF TELEFON AB LM ERICSSON OF SWEDEN UNDER THE CONTRACT ERICSSON AUSTRALIA WILL PROVIDE BASE STATIONS POWER GENERATORS AND ABOUT 1000 HANDSETS THE SYSTEM IS EXPECTED TO BECOME OPERATIONAL IN SEPTEMBER OR OCTOBER THE THAI SUBSIDIARY SAID 9302040121 930204 SONAT INC TO REDEEM NOTES BIRMINGHAM ALA SONAT INC AN ENERGY COMPANY SAID IT WILL PAY AN ESTIMATED 272 MILLION TO REDEEM ALL OF ITS LIQUID YIELD OPTION NOTES DUE 2005 THE REDEMPTION DATE IS MARCH 15 AND THE PRICE IS 41130 PER 1000 FACE AMOUNT AT MATURITY 9302040120 930204 ECONOMY FASB APPROVES PLAN REQUIRING BANKS TO VALUE MOST DEBT AT MARKET PRICES BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE STRONG OPPOSITION FROM BANKS THE FINANCIAL ACCOUNTING STANDARDS BOARD APPROVED A PROPOSAL REQUIRING BANKS TO VALUE MOST OF THEIR DEBT SECURITIES AT CURRENT MARKET PRICES ALTHOUGH THE PROPOSAL IS STILL SUBJECT TO FINETUNING YESTERDAY'S 52 VOTE THE FIRST FORMAL ACTION ON THE MATTER MAKES IT MORE LIKELY THAT THE FASB WILL IMPLEMENT THE ACCOUNTING CHANGE THIS YEAR THE NEW RULE ESSENTIALLY WOULD FORCE BANKS TO VALUE THEIR INVESTMENT PORTFOLIOS CLOSER TO THEIR ACTUAL MARKET VALUE RATHER THAN THE INITIAL COST MANY ACCOUNTANTS BELIEVE THE CHANGE WILL MORE ACCURATELY REFLECT THE BANKS' FINANCIAL PICTURE THE ONLY EXCEPTION TO THE RULE IS IF THE BANKS PLEDGE TO HOLD THE SECURITIES TO MATURITY BUT BANKS COMPLAIN THAT REQUIRING THEM TO VALUE MORE DEBT SECURITIES AT MARKET VALUE WOULD CAUSE SHARP FLUCTUATIONS IN THE VALUE OF THEIR CAPITAL TO AVOID THIS THEY SAY THEY WOULD BE FORCED TO HOLD SHORTERMATURITY BONDS WHICH ARE LESS VOLATILE BUT GENERALLY BRING A SMALLER RETURN THAN LONGTERM DEBT THE FASB SAYS THE APPROACH IT APPROVED STILL PERMITS BANKS TO HOLD SOME DEBT SECURITIES AT INITIAL COST REDUCING VOLATILITY OF CAPITAL BUT SOME BANKS SAY THE FASB PROPOSAL'S CRITERIA ARE SO STRICT THAT FEW DEBT SECURITIES WOULD QUALIFY FOR THIS TREATMENT SINCE THE BANKS MUST GUARANTEE THAT THE DEBT WILL BE HELD TO MATURITY THE STAFF IS GOING TO TRY TO REVISE THAT PART OF THE PROPOSAL SO THAT IT'S CLEARER THAT SOME SECURITIES CAN BE HELD AT INITIAL COST SAID TIMOTHY LUCAS THE FASB'S RESEARCH DIRECTOR MR LUCAS SAYS IT IS STILL POSSIBLE THAT IF THE FASB CAN'T AGREE ON THE REVISION THE BOARD MAY SEEK OTHER APPROACHES BUT ROBERT WILKINS AN FASB PROJECT MANAGER SAID THE 52 VOTE MEANS THAT THE FOCUS WILL BE ON IMPLEMENTING THE CURRENT VALUE PROPOSAL EVEN WITH THE FINETUNING IT IS UNLIKELY BANKERS WILL BE HAPPY WITH THE PROPOSAL SCHEDULED TO BECOME AN ACCOUNTING RULE LATE IN THE SECOND QUARTER WE'RE DISAPPOINTED THEY DIDN'T DROP THE PROPOSAL ALTOGETHER BUT WE'RE HOPING THAT THE REVISION WILL HELP EASE THE VOLATILITY PROBLEM SAYS DONNA FISHER MANAGER OF ACCOUNTING POLICY AT THE AMERICAN BANKERS ASSOCIATION IN APPROVING THE CURRENT VALUE APPROACH FASB OPTED TO AVOID BROADENING THE PROPOSAL TO ALSO VALUE BANK LIABILITIES SUCH AS DEMAND AND TIME DEPOSITS AT CURRENT MARKET PRICES MARKING SUCH LIABILITIES TO MARKET WOULD HAVE OFFSET SOME OF THE VOLATILITY ON CAPITAL RESULTING FROM THE PROPOSAL 9302040119 930204 SHERWINWILLIAMS JURY VERDICT CLEVELAND SHERWINWILLIAMS CO SAID IT IS CONSIDERING AN APPEAL OF A 1 MILLION NEW HAMPSHIRE JURY AWARD AGAINST IT A FEDERAL COURT JURY IN CONCORD NH RULED IN FAVOR OF EASTERN MOUNTAIN PLATFORM TENNIS INC WALPOLE NH WHOSE 1991 LAWSUIT CLAIMED THAT 20 PLATFORM TENNIS COURTS PAINTED WITH SHERWINWILLIAMS INDUSTRIAL PAINT HAD PEELED EXPOSING THE ALUMINUM UNDERNEATH IN ADDITION THE PAINT THAT REMAINED BECAME TOO SLIPPERY TO PLAY ON THE LAWSUIT SAID A SPOKESMAN FOR SHERWINWILLIAMS SAID THE COMPANY BELIEVED THE VERDICT REFLECTED AN IMPROPER INTERPRETATION OF THE LAW AND THAT IT IS REVIEWING ITS RIGHTS TO APPEAL 9302040117 930204 LEGO GROUP NARROWS ITS SEARCH TO TWO SITES FOR US THEME PARK ENFIELD CONN LEGO SYSTEMS INC THE US SUBSIDIARY OF THE CLOSELY HELD LEGO GROUP OF DENMARK SAID IT HAS NARROWED ITS SEARCH FOR A US THEME PARK LOCATION TO TWO SITES A LEGO SPOKESMAN SAID THAT THE COMPANY WILL CHOOSE BETWEEN SITES IN CARLSBAD CALIF AND PRINCE WILLIAM COUNTY VA BY JUNE AND PURCHASE PROPERTY THE THEME PARK IS EXPECTED TO COST 100 MILLION AND BE COMPLETED IN 1999 LEGO GROUP WHICH HAS OPERATED A LEGOLAND THEME PARK NEAR ITS HEADQUARTERS IN BILLUND DENMARK9 SINCE 1968 ANNOUNCED IN 1991 THAT IT WOULD BE EXPANDING ITS THEME PARK BUSINESS IN THE US AND SOON BEGAN EXAMINING POSSIBLE SITES THE COMPANY ANNOUNCED PLANS IN DECEMBER 1992 TO BUILD A LEGOLAND THEME PARK ON 142 ACRES IT PURCHASED NEAR WINDSOR CASTLE IN LONDON THE COMPANY EXPECTS TO COMPLETE THAT PARK IN 1996 AT A COST OF ABOUT 100 MILLION 9302040116 930204 WHO'S NEWS CONCURRENT COMPUTER CORP CONCURRENT COMPUTER CORP OCEANPORT NJ THIS PROVIDER OF FAULTTOLERANT COMPUTER SYSTEMS SAID MICHAEL J KING 55 YEARS OLD WAS ELECTED TO ITS NINEMEMBER BOARD MR KING PRESIDENT AND CHIEF EXECUTIVE OF SOFTWARE AG OF NORTH AMERICA INC FILLS A VACANCY CREATED BY THE RETIREMENT OF DEAN W FREED 69 9302040115 930204 TECHNOLOGY ACME ELECTRIC'S BATTERY ACCORD EAST AURORA NY ACME ELECTRIC CORP SAID IT AGREED TO DEVELOP A MAINTENANCEFREE RECHARGEABLE BATTERY WITH BORIS TSENTER THE INVENTOR OF THE NICKEL HYDROGEN BATTERY AND FORMER HEAD OF THE FORMER SOVIET UNION'S SPACEBATTERY DEVELOPMENT PROGRAM ACME SAID THE NEW TECHNOLOGY WHICH COMBINES ELEMENTS OF SEALED AND VENTED CELLS INTO ONE SEALED BATTERY COULD BE USED IN ELECTRIC VEHICLES ACME DESIGNS AND MAKES POWERCONVERSION PRODUCTS FOR ELECTRONIC AND ELECTRICAL SYSTEMS 9302040114 930204 LETTERS TO THE EDITOR SCHLAFLY'S STANCE FULL OF INTOLERANCE IN HER JAN 19 EDITORIALPAGE ARTICLE CLINTON AND FAMILY VALUES CONCERNING THE INADEQUACIES OF OUR EDUCATION AND HEALTH CARE SYSTEMS PHYLLIS SCHLAFLY AS IS HER WONT DID NOT ILLUMINATE THE CONSERVATIVE VIEWPOINT INSTEAD SHE ONLY EXPOSED HER INTOLERANT ATTITUDES THIS INTOLERANCE CAN BE FOUND AMONG OTHER PLACES IN HER PLUG FOR PROLIFE ACTIVISM AND HER SWIPE AT THE OREGON MEDICAID PLAN WHICH PAYS FOR SERVICES CONNECTED TO STERILIZATION PROCEDURES BIRTH CONTROL AND ABORTION THOUGH MRS SCHLAFLY WOULD HAVE US BELIEVE OTHERWISE FAMILY VALUES ARE NOT CONTRADICTORY WITH THESE OFTEN VERY NECESSARY SERVICES TO IMPLY THAT THEY ARE IS AN INSULT TO MANY MAINLINE PROTESTANTS JEWS AND MEMBERS OF OTHER RELIGIONS WHO CONSIDER THESE SERVICES TO BE ACCEPTABLE WHAT IS CONTRADICTORY AND ANOTHER SIGN OF HER INTOLERANCE IS MRS SCHLAFLY'S ASSERTION THAT THE RIGHT TO BRING UP OUR OWN CHILDREN TO BELIEVE IN THE RELIGIOUS AND ETHICAL PRECEPTS WE CHERISH IS SLIPPING AWAY WHILE AT THE SAME TIME SHE CRITICIZES THE NEW AGE RELIGION ALLEGEDLY BEING TAUGHT IN PUBLIC SCHOOLS SHE THUS IGNORES THE DISTINCT POSSIBILITY THAT SOME PARENTS PRACTICE NEW AGE FAITHS AND WANT THEM TAUGHT TO THEIR CHILDREN JUST AS SHE WANTS HER OWN RELIGIOUS PRECEPTS TAUGHT THOUGH IT IS ESSENTIAL TO TEACH ETHICS TO ALL CHILDREN IT IS THE ROLE OF THE PARENTS AND NOT THE PUBLIC SCHOOLS TO PROPAGATE SPECIFIC RELIGIOUS BELIEFS MRS SCHLAFLY'S PROPOSED SOLUTIONS TO HEALTH CARE SYSTEM PROBLEMS WERE ALSO SHORTSIGHTED WHICH ONLY REINFORCED MY OPINION THAT SHE IS NOT QUALIFIED TO EDITORIALIZE ON EDUCATION AND HEALTH CARE AFTER ALL THIS IS THE SAME WOMAN WHO ASSERTED THAT TEACHERS SHOULD EARN LESS THAN LIQUOR STORE CLERKS AND THAT NURSES DON'T DESERVE TO EARN AS MUCH AS TREE TRIMMERS THE DENVER POST FEB 8 1984 MRS SCHLAFLY ARRIVED AT THESE BIZARRE CONCLUSIONS VIA THE REASONING THAT TREE TRIMMING IS DANGEROUS WHILE NURSES ONLY WORK IN A BUILDING AND THAT THERE ARE MORE TEACHERS THAN THERE ARE TEACHING JOBS RAISING THEIR WAGES WILL JUST CAUSE MORE PEOPLE TO GO INTO A FIELD WHERE THERE AREN'T ANY JOBS THIS COMING FROM A LAWYER WHO HAS NOT HELD A PAYING JOB SINCE THE LATE 1940S OVERALL MRS SCHLAFLY RAISED SEVERAL IMPORTANT CONCERNS AMERICANS HAVE REGARDING EDUCATION AND HEALTH CARE BUT IN HER MANGLING HANDS THESE ISSUES WERE ONLY TWISTED AROUND WHAT SEEMS TO BE HER DANGEROUSLY NARROW DEFINITION OF FAMILY VALUES 9302040113 930204 INTERNATIONAL ITALIAN AID TO FIRM IS PROBED BRUSSELS THE EUROPEAN COMMUNITY COMMISSION LAUNCHED AN INVESTIGATION INTO ITALIAN PLANS TO GRANT A 186 BILLION LIRE 1221 MILLION SUBSIDY TO PAPER MANUFACTURER CARTIERE DEL GARDA A UNIT OF GERMANY'S GIANT PUBLISHING GROUP BERTELSMANN AG THE COMMISSION SAID IT BELIEVES THE SUBSIDY BREAKS ITS STATE AID RULES HOWEVER BEFORE MAKING A FINAL DECISION IT IS INVITING THE COMPANY AND OTHER INTERESTED PARTIES TO GIVE THEIR COMMENTS THE AID WAS OFFERED BY TRENTO REGIONAL AUTHORITIES TO ENCOURAGE CARTIERE TO CHANGE ITS ORIGINAL PLANS TO EXPAND AT THE VACATION RESORT OF RIVA AND OPT FOR NEARBY MORI THE GRANT WOULD HAVE OFFSET THE EXTRA COSTS OF THE CHANGE 9302040112 930204 TACO CABANA 4THPERIOD PROFIT SAN ANTONIO TEXAS TACO CABANA INC SAID ITS FOURTHQUARTER EARNINGS MORE THAN DOUBLED TO 13 CENTS A SHARE BOLSTERED BY ACQUISITIONS OF TEXMEX FASTFOOD RESTAURANTS REVENUE IN THE QUARTER ENDED JAN 2 ROSE TO 185 MILLION FROM 82 MILLION AND NET INCOME JUMPED TO 892000 FROM 217000 OR SIX CENTS A SHARE THE FOURTHQUARTER COMPARISON DOESN'T INCLUDE PROCEEDS OF A 35 MILLION SETTLEMENT TACO CABANA WON FROM RIVAL TWO PESOS INC A RESTAURANT CHAIN THAT TACO CABANA SINCE HAS AGREED TO ACQUIRE FOR THE YEAR NET ROSE TO 32 MILLION OR 61 CENTS A SHARE FROM 18 MILLION OR 54 CENTS A SHARE REVENUE CLIMBED TO 592 MILLION FROM 335 MILLION 9302040111 930204 TELRAD GETS 120 MILLION ORDER WOODBURY NY TELRAD TELECOMMUNICATIONS CORP RECEIVED A THREE YEAR 120 MILLION CONTRACT FROM ISRAEL'S TELEPHONE COMPANY TO PROVIDE DIGITAL CENTRALOFFICE EXCHANGES THE PRIVATELY HELD ISRAELI COMPANY WITH US OPERATIONS BASED HERE SAID THE EXCHANGES WILL BE AT CENTRALOFFICE TELEPHONE FACILITIES THROUGHOUT ISRAEL TELRAD SAID THE EXCHANGES ARE DESIGNED TO IMPROVE THE OVERALL QUALITY OF THE ISRAELI TELEPHONE SYSTEM AND TO OFFER BUSINESSES AND CONSUMERS MORE LINE CAPACITY 9302040110 930204 WHO'S NEWS NATWEST SECURITIES CORP NATWEST SECURITIES CORP NEW YORK PETER L ANKER WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT AND DEPUTY DIRECTOR OF RESEARCH OF THIS US SECURITIES UNIT OF NATIONAL WESTMINSTER BANK GROUP PLC MR ANKER PREVIOUSLY SERVED AS DIRECTOR OF EQUITY RESEARCH AND A MANAGING DIRECTOR AT FIRST BOSTON CORP HE WILL BE NATWEST'S SENIOR METALS AND MINING ANALYST AND WILL REPORT TO MICHAEL DERCHIN DIRECTOR OF EQUITY RESEARCH 9302040109 930204 SAFECO'S STORMRELATED CLAIMS SEATTLE SAFECO CORP SAID IT EXPECTS TO PAY OUT ABOUT 24 MILLION FOR LOSSES RELATED TO THE JAN 20 WINDSTORM THAT STRUCK THE PUGET SOUND AREA IN WASHINGTON THE COMPANY SAID THOSE LOSSES WILL RESULT IN A CHARGE OF BETWEEN 25 CENTS AND 26 CENTS A SHARE IN THE QUARTER ENDING MARCH 31 THE INSURANCE CONCERN SAID MORE THAN 10000 CLAIMS HAVE BEEN REPORTED IN THE TWO WEEKS SINCE THE STORM 9302040108 930204 MICHAELS STORES JANUARY SALES IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES INCREASED 22 IN JANUARY AND THE SPECIALTY RETAILER ESTIMATED EARNINGS FOR THE FISCAL YEAR ENDED JAN 31 OF BETWEEN 115 AND 120 A SHARE IN ALL MICHAELS' SALES INCREASED 42 IN JANUARY TO 436 MILLION FOR THE QUARTER SALES ROSE 26 TO 1821 MILLION AND FOR THE FISCAL YEAR TOTAL SALES CLIMBED 20 TO 4932 MILLION THE COMPANY SAID IT WOULD REPORT EARNINGS DURING THE FIRST WEEK OF MARCH IN FISCAL YEAR 1991 MICHAELS EARNED 69 MILLION OR 56 CENTS A SHARE ON SALES OF 4109 MILLION 9302040107 930204 PANEL URGES STEPS TO HELP STUDENTS PAY COLLEGE COSTS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A CONGRESSIONALLY FUNDED COMMISSION WARNED THAT SOARING TUITION COSTS ARE KEEPING STUDENTS OUT OF COLLEGE AND RECOMMENDED GIVING EACH STUDENT 14000 IN ANNUAL FEDERAL AID IN ITS REPORT THE COMMISSION NOTED THAT THE COSTS OF PUBLIC AND PRIVATE COLLEGES AND UNIVERSITIES ROSE 126 IN THE 1980S A RATE TWICE THAT OF INFLATION AT THE SAME TIME IT SAID FEDERAL FUNDING DIDN'T KEEP PACE CLEARLY THE CURRENT LOAN SYSTEM HAS REAL PROBLEMS AND THE PROSPECT OF BEING SADDLED WITH HUGE DEBTS SCARES SOME KIDS OUT OF GOING TO COLLEGE SAID DR RICHARD ROSSER PRESIDENT OF THE NATIONAL ASSOCIATION OF INDEPENDENT COLLEGES AND UNIVERSITIES ALTHOUGH THE REPORT WHICH WAS PRESENTED TO PRESIDENT CLINTON AND CONGRESS RECEIVED WIDE BIPARTISAN SUPPORT AND ECHOED MANY OF MR CLINTON'S CAMPAIGN THEMES CRITICS ARGUE THAT THE CURRENT BUDGET DEFICIT MAKES IT UNLIKELY THAT CONGRESS WILL APPROVE MORE FEDERAL SPENDING IT'S NOT GOING TO BE A REPORT THE PRESIDENT WILL PICK UP AND WE WILL ENACT NEXT WEEK SAID THOMAS WOLANIN STAFF DIRECTOR OF THE HOUSE POSTSECONDARY EDUCATION SUBCOMITTEE BUT IT IS HELPFUL IN THE LONGTERM FOR MAKING THE CASE THAT FEDERAL FUNDING OUGHT TO BE A PRIORITY TO MAKE COLLEGE MORE AFFORDABLE ESPECIALLY FOR LOWINCOME AND MIDDLEINCOME STUDENTS THE COMMISSION RECOMMENDED THAT THE FEDERAL GOVERNMENT SPEND AN ADDITIONAL 7 BILLION ANNUALLY ON EDUCATION AID AND IN AN EFFORT TO MAKE THE PROCESS LESS COMPLEX AND MORE FAIR THE COMMISSION CALLED FOR SCRAPPING THE CURRENT FEDERALAID SYSTEM AND REPLACING IT WITH A NEW PROGRAM CALLED STUDENT'S TOTAL EDUCATION PACKAGE OR STEP UNDER STEP THE REPORT SAID ALL FULLTIME UNDERGRADUATE COLLEGE STUDENT WOULD RECEIVE THE SAME AMOUNT OF FEDERAL AIDABOUT 14000 ANNUALLY REGARDLESS OF A FAMILY'S INCOME BUT THE TYPE OF FEDRAL AID SUCH AS GRANTS VS LOANS WOULD DEPEND ON THE INDIVIDUAL'S FINANCIAL NEEDS AND TUITION COSTS TO EASE THE PAIN OF PAYING BACK STUDENT LOANS AND TO HELP COMBAT RISING DEFAULTS THE REPORT SPELLS OUT THREE PAYMENT METHODS THEY INCLUDE TYING THE PAYMENT SCHEDULE TO THE GRADUATE'S INCOME A NATIONAL SERVICE PROGRAM THAT WOULD ALLOW STUDENTS TO WORK IN THEIR COMMUNITIES IN EXCHANGE FOR LOAN FORGIVENESS AND TAX REFORMS TO ENCOURAGE SAVINGS FOR COLLEGE THE COMMISSION WAS MADE UP OF ACADEMICS BUSINESS EXECUTIVES AND FORMER GOVERNMENT OFFICIALS 9302040106 930204 TIME WARNER FILES DEBT SHELF NEW YORK TIME WARNER INC CONTINUING EFFORTS TO PARE DOWN INTEREST COSTS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SHELF REGISTRATION STATEMENT FOR THE SALE OF UP TO 15 BILLION OF DEBT SECURITIES THE MEDIA AND ENTERTAINMENT COMPANY SAID THE SECURITIES WOULD BE CONVERTIBLE INTO OR EXCHANGEABLE FOR TIME WARNER COMMON STOCK PROCEEDS WILL BE USED TO REPURCHASE OR REDEEM THE COMPANY'S SERIES C 8 3/4 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE COMPANY SAID IT INTENDS THAT THE PROPOSED SECURITIES BE NO MORE DILUTIVE THAN THE SHARES TO BE RETIRED AND IT EXPECTS A CONVERSION OR EXERCISE PRICE OF ABOUT 50 A COMMON SHARE SINCE DECEMBER TIME WARNER HAS SOLD MORE THAN 35 BILLION OF DEBT GENERALLY USING PROCEEDS TO REFINANCE OR REDEEM DEBT OR HIGHINTEREST PREFERRED STOCK 9302040105 930204 STELCO UNIT AND ENRON SIGN PACT WELLAND ONTARIO THE PIPEMAKING UNIT OF STELCO INC SAID IT SIGNED A LETTER OF INTENT WITH ENRON CORP TO PROVIDE 40 MILLION CANADIAN DOLLARS US316 MILLION OF STEEL PIPE FOR THE PROPOSED EXPANSION OF THE ENRON/FLORIDA GAS GROUP'S GAS TRANSMISSION FACILITIES STELPIPE SAID THE LETTER OF INTENT CALLS FOR IT TO SUPPLY 100 MILES OF 36INCHDIAMETER PIPE TO BE PRODUCED AT THE COMPANY'S WELLAND LARGEDIAMETER PIPE MILL IN THE SECOND HALF OF 1993 ENRON'S FACILITIES EXPANSION PROJECT IS SUBJECT TO APPROVAL BY THE FEDERAL ENERGY REGULATORY COMMISSION STELCO IS A HAMILTON ONTARIO STEELMAKER ENRON IS A NATURAL GAS TRANSPORTATION AND MARKETING CONCERN BASED IN HOUSTON 9302040104 930204 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AVID TECHNOLOGY INC AN INITIAL OFFERING OF 28 MILLION COMMON SHARES VIA MORGAN STANLEY & CO ROBERTSON STEPHENS & CO AND VOLPE WELTY & CO ORCHARD SUPPLY HARDWARE STORES CORP AN INITIAL OFFERING OF FOUR MILLION COMMON SHARES UNITED BIOMEDICAL INC AN INITIAL OFFERING OF 275 MILLION COMMON SHARES VIA BEAR STEARNS & CO NOMURA SECURITIES INTERNATIONAL INC AND VOLPE WELTY & CO WALL DATA INC AN INITIAL OFFERING OF 28 MILLION SHARES OF COMMON STOCK VIA BEAR STEARNS & CO AND ROBERTSON STEPHENS & CO 9302040103 930204 DAILY PRICEMOVE LIMITS ARE EXPANDED FOR LUMBER CHICAGO THE CHICAGO MERCANTILE EXCHANGE FACING A SURGE IN DEMAND FOR LUMBER FUTURES CONTRACTS EXPANDED ITS DAILY PRICEMOVE LIMITS FOR THE CONTRACTS THE PRICE OF THE MERC'S MARCH LUMBER FUTURES CONTRACT HAS RISEN BY THE 5PERCONTRACT DAILY PRICEMOVE LIMIT FOR THE PAST EIGHT CONSECUTIVE TRADING DAYS BECAUSE OF A LUMBER SHORTAGE CAUSED BY AN UPTURN IN BUILDING AND CONSTRAINTS ON LOGGING UNDER TERMS OF THE MERC'S RULE CHANGE WHICH GOES INTO EFFECT TODAY THE DAILY LIMIT WILL BE INCREASED TO 10 FOR A PERIOD OF TWO DAYS BUT ONLY AFTER THE PRICE OF LUMBER FUTURES HAS RISEN BY THE CURRENT 5 LIMIT FOR TWO CONSECUTIVE TRADING DAYS UNDER CERTAIN CONDITIONS THE LIMIT CAN BE INCREASED TO 15 A DAY IF A 10ADAY LIMIT DOESN'T APPEAR TO BE SUFFICIENT THE MERC MADE THE CHANGES BECAUSE LUMBER FUTURES CONTRACTS WHEN LOCKED AT THE DAILY PRICEMOVE LIMIT AS THEY HAVE BEEN FOR MORE THAN A WEEK AREN'T AVAILABLE FOR TRADING 9302040102 930204 INTERNATIONAL FIRES AT CHERNOBYL HEIGHTEN SAFETY CONCERNS BY LAURIE HAYS AND NATALIA A FEDUSCHAK STAFF REPORTERS OF THE WALL STREET JOURNAL TWO SMALL FIRES AND AN OIL LEAK THAT COULD HAVE CAUSED A THIRD FIRE LAST MONTH AT THE CHERNOBYL NUCLEAR POWER STATION IN UKRAINE TECHNICALLY QUALIFIED AS MINOR INCIDENTS THAT DIDN'T INVOLVE THE RELEASE OF RADIOACTIVITY BUT THE CARELESSNESS THAT CAUSED THEM HAS HEIGHTENED FEARS THAT IMPORTANT EVEN BASIC SAFETY MEASURES AREN'T BEING TAKEN AT THE GENERATING STATION WHERE HISTORY'S WORST NUCLEAR ACCIDENT OCCURRED IN 1986 THESE FIRES WERE PUT OUT QUICKLY SAYS OLEKSANDER KORDIUK HEAD OF THE NUCLEAR AND RADIATION SAFETY DEPARTMENT AT THE MINISTRY OF THE ENVIRONMENT IN KIEV UKRAINE'S CAPITAL BUT THEY CAN AND PROBABLY WILL CONTINUE TO OCCUR ASKS HANS MEYER A SPOKESMAN FOR THE INTERNATIONAL ATOMIC ENERGY AGENCY IN VIENNA WHY ARE THINGS LIKE THIS EVEN HAPPENING AFTER THE CATASTROPHIC RELEASE OF CLOUDS OF RADIOACTIVE SUBSTANCES FOLLOWING AN EXPLOSION AT THE CHERNOBYL STATION IN 1986 SOVIET AND UKRAINE OFFICIALS ARE SUPPOSED TO HAVE UPGRADED THE PLANT AND RETRAINED OPERATORS TO ENSURE THAT THE DISASTER ISN'T REPEATED MR KORDIUK SAID ALL POSSIBLE PRECAUTIONS HAVE BEEN TAKEN TO MAKE SURE THE TWO OPERATIONAL BLOCKS OF THE PLANT SHUT DOWN IMMEDIATELY IN CASE OF AN ACCIDENT UKRAINE WOULD LIKE TO BE RID OF ITS CHERNOBYL PROBLEM THE PARLIAMENT HAS VOTED TO CLOSE ALL REMAINING REACTORS AT CHERNOBYL BY THE END OF THIS YEAR THE FOURTH BLOCK OF CHERNOBYL WHERE THE 1986 ACCIDENT OCCURRED HAS BEEN CLOSED SINCE THEN ITS REACTOR HAS BEEN ENCASED IN A HUGE BLOCK OF CEMENT TO ENTOMB THE REMAINING RADIOACTIVE MATERIAL BLOCK 2 DAMAGED BY A BAD FIRE IN OCTOBER 1991 HAS ALSO BEEN CLOSED BUT MR KORDIUK CONCEDES AS DO OTHER EXPERTS THAT DESPITE THESE MEASURES THE TWO OPERATING BLOCKS REMAIN UNSAFE THE TWO RECENT FIRES INDICATE THE RISKS BOTH FIRES WHICH OCCURRED WITHIN TWO DAYS OF EACH OTHER LAST MONTH INVOLVED FAULTY HIGHLY FLAMMABLE CABLES THAT CAUGHT FIRE AFTER MELTING SNOW LEAKED THROUGH THE ROOF AND ONTO CABLES IN DIFFERENT PARTS OF THE NUCLEAR STATION THE ROOF OF THE ENTIRE CHERNOBYL PLANT A LONG BUILDING CONTAINING SEPARATE UNITS IS IN POOR CONDITION MR KORDIUK SAYS THE FIRST FIRE WAS IN AN AUXILIARY EQUIPMENT SHED IN BLOCK 1 THE SECOND WAS IN A MAINTENANCE CORRIDOR NEAR BLOCK 4 IT CAUSED A FIRE OF CONSTRUCTION MATERIALS AND WAS PUT OUT WHEN SMOKE WAS SEEN BOTH FIRES WERE PUT OUT QUICKLY AND RATED ZERO OR LEAST SERIOUS ON THE INTERNATIONAL NUCLEAR EVENT SCALE A THIRD POTENTIAL FIRE A FEW DAYS LATER WAS AVERTED WHEN A SHIFT SUPERVISOR NOTICED A SMALL OIL LEAK FROM A PIPE IN A TURBINE THE SUPERVISOR SAID THE TURBINE WASN'T DEFECTIVE AND THAT THESE TYPES OF ACCIDENTS ARE COMMON FOR OBVIOUS REASONS FIRES POSE IMMENSE RISK TO A NUCLEAR POWER PLANT THE MOST SERIOUS INCIDENT AT CHERNOBYL SINCE 1986 OCCURRED IN OCTOBER 1991 WHEN OIL LEAKED FROM A TURBINE IN BLOCK NO 2 CAUGHT FIRE AND CAUSED AN EXPLOSION WHEN IT MIXED WITH HYDROGEN USED IN THE COOLING SYSTEM THE DAMAGE WAS SO EXTENSIVE THAT THE REACTOR WAS IMMEDIATELY SHUT DOWN THAT ACCIDENT RATED A THREE ON THE INTERNATIONAL SCALE THOUGH NO RADIATION LEAKED THE ROOT CAUSES OF CHERNOBYL'S HAZARDOUS OPERATIONS ARE MANY NOT ONLY IS THE DESIGN OF CHERNOBYLTYPE REACTORS FAULTY EXPERTS SAY BUT IT DOESN'T HAVE THE BACKUPS TO PREVENT ACCIDENTS AND ITS PLANTCONTROL EQUIPMENT IS CONSIDERED DIFFICULT TO OPERATE IT ALSO LACKS FIREWALLS TO ISOLATE ITS CONTROL SYSTEMS THE APRIL 26 1986 ACCIDENT OCCURRED WHEN THE PLANT'S OPERATORS TURNED OFF THE SAFETY SYSTEM TO CARRY OUT AN OVERDUE ELECTRICAL TEST THE REACTOR RACED OUT OF CONTROL AND ITS ROOF BLEW OFF SPEWING ITS RADIOACTIVE CONTENTS INTO THE AIR WHERE IT SPREAD ACROSS NORTHERN EUROPE THE AREA SURROUNDING CHERNOBYL HAS BEEN EVACUATED THE SLOW OFFICIAL RESPONSE TO THE ACCIDENT AND LACK OF CONTAINMENT AT THE REACTOR SITE WERE THE MAIN REASONS FOR THE HUNDREDS OF RESULTING DEATHS AND INJURIES AND LINGERING ENVIRONMENTAL DAMAGE AS WITH SO MANY OTHER PROBLEMS FACING THE FORMER SOVIET UNION LACK OF FUNDS IS A MAJOR OBSTACLE FOR UPGRADING THE NUCLEAR POWER SYSTEM ONE WESTERN DIPLOMAT WHO IS WORKING WITH RUSSIANS ON THEIR PROBLEMS SAYS THERE IS A SEVERE SHORTAGE OF SPARE PARTS FOR THE NUCLEAR PLANTS THIS IS THE REASON FOR THE TYPES OF ACCIDENTS WE'RE SEEING NOW SAID THE DIPLOMAT WHO ASKED NOT TO BE IDENTIFIED FOR EXAMPLE THE FAULTYCABLE PROBLEM WAS NOTED MORE THAN TWO YEARS AGO WHEN INSPECTORS FROM THE INTERNATIONAL ATOMIC ENERGY AGENCY WHICH IS AFFILIATED WITH THE UNITED NATIONS VISITED CHERNOBYL AMONG THE HAZARDS THEY COMMENTED ON IN THEIR REPORTS WERE OLD DUSTY CABLES THAT NEEDED TO BE REPLACED EVEN WHEN CHERNOBYL IS SHUT DOWN COMPLETELY NOBODY KNOWS THE BEST WAY TO DISMANTLE IT UKRAINE HAS ANNOUNCED AN INTERNATIONAL CONTEST TO COME UP WITH THE SAFEST WAY TO DISMANTLE THE CONCRETEENTOMBED FOURTH BLOCK WHERE THE 1986 ACCIDENT OCCURRED CHERNOBYL PROVIDES POWER TO KIEV RUSSIA AND SEVERAL EAST EUROPEAN COUNTRIES INCLUDING POLAND THE CZECH AND SLOVAK REPUBLICS HUNGARY AND ROMANIA UKRAINE HAS THREE OTHER NUCLEAR POWER PLANTS WHICH GENERALLY MEET INTERNATIONAL STANDARDS IT IS PLANNING TO SHUT DOWN TWO BLOCKS IN ITS RIVENSKA POWER STATION OUTSIDE KIEV BECAUSE THEY DON'T MEET INTERNATIONAL SAFETY STANDARDS RUSSIA HAS THREE CHERNOBYLTYPE REACTORS AND IS UPGRADING THEM TO MEET INTERNATIONAL STANDARDS OTHER CHERNOBYLTYPE REACTORS ARE IN EAST EUROPE THOUGH MANY IN UKRAINE WOULD LIKE TO SCRAP NUCLEAR POWER ENTIRELY MR KORDIUK SAYS THAT'S UNLIKELY POLITICIANS ARE PREOCCUPIED BY THE COUNTRY'S ECONOMIC DECLINE SINCE THE BREAKUP OF THE SOVIET UNION AND THEY AREN'T GIVING MUCH WEIGHT TO THE RISKS OF PLANTS LIKE CHERNOBYL HE SAYS THE WORLD IS FORGETTING ABOUT THIS CATASTROPHE BUT THE PROBLEM FOR UKRAINE ISN'T GETTING SMALLER IT'S GETTING BIGGER 9302040101 930204 LETTERS TO THE EDITOR INVESTMENT CLIENT TAKES A BAD WRAP YOUR JAN 6 ARTICLE UNCOVERING THE NEW MUTUAL FUND WRAP' PACKAGES SHOWS ONCE AGAIN HOW WALL STREET CAN STRUCTURE A PRODUCT THAT IS SOLD TO THE PUBLIC WITH GREAT VIGOR ADDING LITTLE OR NO VALUE AT GREAT EXPENSE THESE NEW WRAP ACCOUNTS FOLLOW THE ORIGINAL 3 INVESTMENT MANAGEMENT WRAP FEES THAT ARE WILDLY EXPENSIVE AND HAVE GENERATED RATHER ORDINARY RETURNS ACCORDING TO PUBLISHED REPORTS THE SAME SEEMS TO BE THE FATE OF MUTUAL FUND WRAPPERS THAT WILL PAY ABOUT AS MUCH FOR SERVICES THAT OFFER NO INCREMENT INDEED WALL STREET'S GUIDE IN PACKAGING CONSULTATIVE SERVICES THAT ARE SO COSTLY REFLECTS THE CONSTANT TRUTH THAT THE CUSTOMER COMES SECOND NO INVESTOR CAN AFFORD TO LEAVE 25 TO 3 ON THE TABLE AND BEAT ANY REASONABLE PERFORMANCE BENCH MARK NOT IN A WORLD WHERE PROFESSIONAL MANAGEMENT FREQUENTLY UNDERPERFORMS WHEN YOU ADD IN THE MARKET IMPACT OF TRYING TO MANAGE THE BILLIONS IN THESE PROGRAMS THE NOTION OF DOING WELL FOR THE INVESTOR FADES FROM VIEW WALL STREET HAS SUBSTITUTED CONVENIENCE FOR DILIGENCE AND THE UNINITIATED HAVE BOUGHT IN SIZE 9302040099 930204 INTERNATIONAL CONTRACT AWARD IN MEXICO RILES 4 US CONCERNS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOUR US COMPANIES COMPLAINED TO THE MEXICAN GOVERNMENT ABOUT ALLEGED IRREGULARITIES IN THE AWARDING OF 21 MILLION IN CONTRACTS TO REVAMP MEXICO'S AIRTRAFFIC CONTROL SYSTEMS THE LOSING BIDDERS WHO FILED SEPARATE COMPLAINTS ARE INTERNATIONAL BUSINESS MACHINES CORP THE ARMONK NY COMPUTER COMPANY RAYTHEON CO A LEXINGTON MASS ELECTRONICS AIRCRAFT AND APPLIANCE MAKER CLOSELY HELD CALMAQUIP ENGINEERING CORP OF MIAMI AND A UNIT OF WESTINGHOUSE ELECTRIC CORP OF PITTSBURGH THE COMPANIES ALLEGE THAT THEIR AIRTRAFFIC EQUIPMENT IS SUPERIOR TO THAT OF THE WINNING BIDDERS ALL BIDDERS WERE JUDGED ON THEIR TECHNICAL COMPLIANCE THE FINANCIAL TIMES OF LONDON WHICH FIRST DISCLOSED THE COMPLAINTS ALSO REPORTED AN IBM AGENT'S ALLEGATION THAT MEXICAN OFFICIALS ASKED FOR A 1 MILLION BRIBE TO SECURE THE CONTRACT THE ISSUE IS DELICATE BECAUSE OF THE CURRENT DEBATE OVER THE PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH MEXICO'S FREEMARKETEER PRESIDENT CARLOS SALINAS DE GORTARI BADLY WANTS TO SOLIDIFY HIS ECONOMIC REFORMS THE TRADE AGREEMENT WOULD INTEGRATE THE ECONOMIES OF THE US CANADA AND MEXICO INTO THE WORLD'S LARGEST TRADE BLOC MEXICO HAS BEEN DOGGED FOR YEARS BY CHARGES OF CORRUPTION IN THE AWARDING OF GOVERNMENT CONTRACTS THE TWO DISPUTED CONTRACTS WERE AWARDED BY A BRANCH OF THE SECRETARIAT OF COMMUNICATION AND TRANSPORTATION A MINISTRY WHOSE INFRASTRUCTURE DUTIES ARE CRUCIAL TO THE SUCCESS OF THE FREETRADE PACT THE WINNERS OF THE RADAR AND AIRTRAFFIC CONTROL CONTRACTS WERE THOMSON SA OF FRANCE AND ALENIA SPA A UNIT OF ITALY'S FINMECCANICA SPA MEXICAN INVESTIGATORS DECLINED TO COMMENT ON THE ALLEGATIONS A US EMBASSY SPOKESWOMAN SAID WASHINGTON WAS AWARE OF THE CHARGES BY THE US COMPANIES BUT DECLINED TO COMMENT BUT THE SPOKESWOMAN SAID THE EMBASSY HADN'T MADE A FORMAL COMPLAINT TO MEXICAN AUTHORITIES ON BEHALF OF THE US COMPANIES A RAYTHEON SPOKESMAN SAID THE CANADIAN GOVERNMENT HAD WRITTEN A LETTER TO MEXICO ON BEHALF OF RAYTHEON'S CANADIAN SUBSIDIARY INVOLVED IN THE BIDDING BUT A CANADIAN EMBASSY SPOKESMAN COULDN'T CONFIRM THAT 9302040098 930204 ENTERPRISE STATES ARE CUTTING BACK ON ENFORCING FRANCHISE RULES AS COMPLAINTS ABOUT ABUSES MOUNT BUYING SUCH BUSINESSES MAY BE RISKIER BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL JUST AS COMPLAINTS ABOUT FRANCHISING ABUSES ARE GETTING LOUDER STATE WATCHDOGS ARE BITING FEWER TRANSGRESSORS THE TREND COULD MAKE BUYING AND RUNNING A FRANCHISE A RISKIER PROPOSITION THIS COULD DISCOURAGE INVESTORS IN ONE OF THE ECONOMY'S FASTESTGROWING SEGMENTS STATES WHICH HAVE ACCOUNTED FOR FAR MORE FRANCHISEREGULATION ENFORCEMENT THAN THE FEDERAL GOVERNMENT BLAME BUDGET CONSTRAINTS OR CUTBACKS FOR THEIR WEAKENING ENFORCEMENT EFFORTS WHILE MANY STATES DON'T REGULATE FRANCHISING AT ALL THE RICH POPULOUS STATES THAT CRACKED DOWN ON WRONGDOING IN RECENT YEARS ARE THE VERY ONES NOW IN RETREAT CALIFORNIA FOR EXAMPLE HAS FILED ONLY ONE CRIMINAL CASE IN THE FRANCHISING FIELD DURING THE PAST THREE YEARS COMPARED WITH EIGHT SUCH CASES FILED IN 1989 ALONE ALSO OFF SHARPLY IN CALIFORNIA IS THE NUMBER OF NEW DESIST AND REFRAIN ORDERS ISSUED AGAINST FRANCHISERS FOR SUCH INFRACTIONS AS FAILING TO GIVE REQUIRED DOCUMENTS TO PROSPECTIVE FRANCHISEES SUCH ORDERS TOTALED 13 LAST YEAR COMPARED WITH 22 IN 1991 AND 31 IN 1990 THE STATE SAYS WE'VE HAD SUBSTANTIAL STAFF AND FUNDING CUTS SAYS JOHN HAYDEN A CALIFORNIA ENFORCEMENT OFFICIAL WE BASICALLY CAN'T BRING AS MANY ACTIONS STILL CALIFORNIA OUTSHINES MANY OTHER STATES FRANCHISING ATTORNEYS SAY FOR INSTANCE NEW YORK ONCE STOOD IN THE VANGUARD OF REFORM SPECIALISTS SAY BUT TODAY ITS INVESTOR PROTECTION AND SECURITIES BUREAU IS NEARLY MORIBUND AFTER YEARS OF FUNDING CUTS CRITICS MAINTAIN THE BUREAU HAS BEEN VERY LAX IN FRANCHISE ENFORCEMENT SAYS W MICHAEL GARNER A FRANCHISING LAWYER IN MANHATTAN WITH LESS ENFORCEMENT PROSPECTIVE INVESTORS IN FRANCHISES FEAR THEY ARE LESS LIKELY TO GET THE INFORMATION THEY NEED TO MAKE INFORMED PURCHASE DECISIONS AND THEY ARE MORE LIKELY TO RUN INTO FRAUDULENT BUSINESS SCHEMES THAT CAN COST THEM TENS OR HUNDREDS OF THOUSANDS OF DOLLARS FRANCHISEE ADVOCATES SAY IF MORE PEOPLE GET BURNED FRANCHISING'S REPUTATION WITH PROSPECTIVE INVESTORS COULD SUFFER SOME ADD THEY RECALL THE BAD OLD DAYS OF THE 1960S BEFORE THE PASSAGE OF FRANCHISING LAWS THE FRANCHISING FIELD WAS THEN RIFE WITH FLYBYNIGHT OPERATORS A TRAP FOR THE TRUSTING AS BOSTON LAWYER HAROLD BROWN PUT IT AT THE TIME IN THE 1970S AND 1980S THOUGH MUCH OF THE ABUSE WAS CURBED AND FRANCHISING THRIVED THE RECENT BACKSLIDING BY THE STATES IS ESPECIALLY TROUBLING BECAUSE HISTORICALLY THE STATES HAVE BEEN FAR MORE AGGRESSIVE THAN THE FEDERAL GOVERNMENT IN GOING AFTER WRONGDOERS FRANCHISEE ADVOCATES SAY THE FRANCHISEE WHO HAS SUFFERED AT THE HANDS OF A FRANCHISER IS LEFT WITH THE REMEDY OF A PRIVATE LAWSUIT WHICH MOST FRANCHISEES CAN'T AFFORD TO PROSECUTE SAYS MR GARNER THE MANHATTAN LAWYER FOR EXAMPLE HE SAYS NEW YORK'S INVESTOR PROTECTION AND SECURITIES BUREAU TOOK NO ACTION ON FRANCHISEE COMPLAINTS ABOUT MR SIGN FRANCHISING CORP A NOWINOPERATIVE FRANCHISER THAT IS THE TARGET OF FRAUD AND RACKETEERING CHARGES IN A SUIT THAT FORMER FRANCHISEES FILED IN FEDERAL COURT IN BROOKLYN THE SUIT ACCUSES MR SIGN OF MAKING NUMEROUS MISREPRESENTATIONS TO FRANCHISEES I CAN'T IMAGINE A CLEARER CASE FOR THE ATTORNEY GENERAL TO GO AFTER SAYS MR GARNER WHO REPRESENTS THE PLAINTIFFS IN THE PRIVATE SUIT MR SIGN'S ATTORNEY DIDN'T RETURN A PHONE CALL THE BUREAU SAYS IT IS VIGOROUS BUT CONCEDES IT HAS ONLY 10 ATTORNEYS DOWN FROM 15 IN 1989 AS FOR MR SIGN BUREAU CHIEF ALICE MCINERNEY SAYS HER STAFF REVIEWED SEVEN COMPLAINTS BUT DEEMED THE MATTER ESSENTIALLY A PRIVATE CONTRACTUAL DISPUTE SHE ADDS THE THINGS WE DO SHOULD HAVE AN IMPACT AND NOT JUST BE REDUNDANT OF PRIVATE ACTIONS THE BUREAU SAYS IT OBTAINED ONE CONSENT INJUNCTION INVOLVING A FRANCHISER IN 1992 COMPARED WITH THREE IN 1991 BLIMPIE ASSOCIATES LTD AND ITS PRESIDENT AGREED TO STOP OFFERING FASTFOOD FRANCHISES WITHOUT GIVING PROSPECTIVE FRANCHISEES COPIES OF AN UPTODATE OFFERING PROSPECTUS THE COMPANY ISN'T TO BE CONFUSED WITH FRANCHISER BLIMPIE INTERNATIONAL INC WHICH SHARES THE TRADEMARK THE BUREAU LAST YEAR ALSO OBTAINED FROM FRANCHISERS SIX ASSURANCES OF DISCONTINUANCE OF VIOLATIONS AN INCREASE FROM THREE IN 1991 SUCH MEASURES ARE MILDER THAN CONSENT INJUNCTIONS BECAUSE THEY LEAVE NO COURT RECORD A LAW DEPARTMENT SPOKESMAN SAYS WITH MORE RESOURCES WE COULD BRING MORE ACTIONS IN VIRGINIA THE DIVISION OF SECURITIES AND RETAIL FRANCHISING SAYS IT LOST A DEPUTY DIRECTOR LAST YEAR WHOM IT HASN'T REPLACED FOR BUDGETARY REASONS NOW SIX EXAMINERS WHO HANDLE FRANCHISE CASES AMONG OTHERS MUST PERFORM MORE ADMINISTRATIVE WORK AS WELL SAYS STEPHEN W MAXEY AN ENFORCEMENT OFFICIAL WE HAVE SO MANY FUNCTIONS HE SAYS THE INVESTIGATIONS DO NOT GET THE PROPER ATTENTION SECURITIES MATTERS TEND TO COMMAND PRIORITY OVER FRANCHISING CASES HE SAYS WE'RE NOT BEATING THE BUSHES TRYING TO FIND VIOLATIONS HE ADDS EVEN SO VIRGINIA HAS COMPLETED 102 FRANCHISING INVESTIGATIONS DURING THE LAST FIVE YEARS MR MAXEY SAYS NO VIOLATIONS WERE FOUND IN ABOUT TWOTHIRDS OF THE CASES THE OTHER CASES RESULTED IN LEGAL SETTLEMENTS MR MAXEY SAYS MANY OF THE PROBLEM FRANCHISERS HAD FAILED TO REGISTER WITH THE STATE SOME HAD MADE MISREPRESENTATIONS OF FRANCHISEE EARNINGS FOR EXAMPLE TO PROSPECTIVE FRANCHISEES FOR THEIR PART MANY FRANCHISERS SAY A FEW ABUSIVE FRANCHISERS ARE GIVING THE WHOLE INDUSTRY A BAD NAME HOPING TO LESSEN PRESSURE FOR TOUGHER LAWS THAT MIGHT SEVERELY RESTRICT THEIR ACTIVITIES SOME FRANCHISERS URGE STRONGER ENFORCEMENT OF EXISTING LAWS GIVEN A CHOICE BETWEEN MORE LAWS AND MORE ENFORCEMENT FRANCHISING COMPANIES AS RULE WOULD FAVOR MORE ENFORCEMENT SAYS LEWIS G RUDNICK A CHICAGO FRANCHISING LAWYER FEDERAL TRADE COMMISSION RULES AND SOME STATE LAWS REQUIRE FRANCHISERS TO GIVE EXTENSIVE DISCLOSURE DOCUMENTS TO PROSPECTIVE FRANCHISEES SOME STATES ALSO HAVE LAWS GOVERNING ASPECTS SUCH AS TERMINATION RIGHTS OF THE RELATIONSHIP BETWEEN FRANCHISERS AND FRANCHISEES IN RECENT MONTHS BOTH FRANCHISERS AND FRANCHISEES HAVE DENOUNCED WHAT THEY SAY IS LACKADAISICAL ENFORCEMENT OF FRANCHISING RULES BY THE FTC THE AGENCY RECENTLY DISCLOSED IT HAS 30 INVESTIGATIONS UNDER WAY INTO POSSIBLE VIOLATIONS OF SUCH RULES BUT THE AGENCY TOLD CONGRESS IT RECEIVES MORE COMPLAINTS OF POSSIBLE FRANCHISERULE VIOLATIONS THAN IT CAN PURSUE GIVEN LIMITED RESOURCES AND THE NEED TO COMBAT MANY OTHER DECEPTIVE BUSINESS PRACTICES AS WELL AS FRANCHISING ABUSE 9302040097 930204 TECHNOLOGY & HEALTH TWO SENATORS SAY DRUG FIRMS FAILED TO KEEP PROMISES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TWO SENATORS RELEASED A REPORT ACCUSING SEVEN PHARMACEUTICAL COMPANIES OF BREAKING THEIR PROMISES TO KEEP PRICE INCREASES BELOW THE INFLATION RATE IN 1992 THE SEVEN DU PONT MERCK PHARMACEUTICAL CO A JOINT VENTURE OF MERCK & CO AND DU PONT CO MARION MERRELL DOW INC HOFFMANNLA ROCHE INC A UNIT OF ROCHE HOLDING LTD MERCK & CO IMPERIAL CHEMICAL INDUSTRIES PLC GLAXO INC A UNIT OF GLAXO HOLDINGS PLC AND PFIZER INC INCREASED THEIR AVERAGE PRICES 4 TO 119 LAST YEAR ACCORDING TO THE REPORT BY DEMOCRATIC SEN DAVID PRYOR OF ARKANSAS AND REPUBLICAN SEN WILLIAM COHEN OF MAINE BY COMPARISON THE CONSUMER PRICE INDEX ROSE 3 IN A FLURRY OF NEWS RELEASES THE PHARMACEUTICAL COMPANIES DISPUTED THE REPORT'S FINDINGS SOME SAYING THE DATA OR METHODOLOGY WERE AT FAULT MOST OF THE COMPANIES MADE THEIR PROMISES BASED ON THE WEIGHTED AVERAGE ACROSS THEIR ENTIRE PRODUCT LINE USING THIS METHOD PRODUCTS WITH HUGE SALES ARE GIVEN MORE WEIGHT IN THE CALCULATIONS A LOW PRICE INCREASE ON A BIGSELLING PRODUCT CAN SIGNIFICANTLY OFFSET MANY SMALLER PRODUCTS WITH SHARPLY HIGHER INCREASES THE CONGRESSIONAL REPORT LOOKED ONLY AT CHANGES OF THE AVERAGE WHOLESALE PRICE THE EQUIVALENT OF A LIST PRICE OF SELECTED PRODUCTS IN PARTICULAR THE COMMITTEE WAS CONCERNED ABOUT DRUGS BOUGHT BY THE ELDERLY MANY OF WHOM DON'T HAVE INSURANCE COVERAGE FOR DRUGS THE COMPANIES SAID USING THE AVERAGE WHOLESALE PRICE WAS UNFAIR BECAUSE IT DOESN'T TAKE INTO ACCOUNT REBATES AND DISCOUNTS AN AIDE WHO PREPARED THE REPORT FOR SEN PRYOR COUNTERED THAT THE AVERAGE WHOLESALE PRICE IS THE STARTING POINT FROM WHICH DISCOUNTS ARE MADE SO IF IT GOES UP THE ACTUAL PRICE RECEIVED BY THE PHARMACEUTICAL COMPANY WOULD RISE SEN PRYOR IS EXPECTED TO REINTRODUCE LEGISLATION CURTAILING HUGE TAX BREAKS FOR THOSE COMPANIES WITH OPERATIONS IN PUERTO RICO AND WHOSE ANNUAL PRICES JUMP ABOVE THE INFLATION RATE MERCK SAID ITS PRICES LAST YEAR INCREASED 31 NOT 55 AS REPORTED BY THE SENATORS GLAXO SAID ITS OVERALL PRICE INCREASE FOR FISCAL 1992 WAS 18 INSTEAD OF THE 44 CITED IN THE REPORT DU PONT MERCK SAID ITS OVERALL PRICE DIDN'T EXCEED THE INFLATION RATE CONTRARY TO THE REPORT'S FINDING OF AN 119 INCREASE MARION MERRELL DOW SAID IT KEPT ITS COMMITMENT AND DISPUTED THE REPORT'S FINDING OF AN 112 INCREASE HOFFMANNLA ROCHE SAID IT MET ITS PLEDGE THE REPORT PUT ITS PRICE INCREASE AT 104 IMPERIAL CHEMICAL WHICH WAS REPORTED TO HAVE RAISED PRICES 5 SAID ITS PRICES ROSE 36 PFIZER SAID ITS WEIGHTED PRICE INCREASE WAS LESS THAN 2 THE CONGRESSIONAL REPORT PUT ITS PRICE INCREASE AT 4 9302040096 930204 WHO'S NEWS SONOCO PRODUCTS CO SONOCO PRODUCTS CO HARTSVILLE SC ROBERT J BROWN 57 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF PACKAGING PRODUCTS MR BROWN IS CHIEF EXECUTIVE OF B&C ASSOCIATES A MANAGEMENT CONSULTING MARKETING RESEARCH AND PUBLIC RELATIONS FIRM IN HIGH POINT NC HE SUCCEEDS C KIRKLAND DUNLAP JR WHO RETIRED FROM THE BOARD LAST YEAR AT AGE 70 ALSO SONOCO SAID PAUL J RIZZO 65 RESIGNED FROM ITS BOARD TO CONCENTRATE ON HIS NEW RESPONSIBILITIES AS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF INTERNATIONAL BUSINESS MACHINES CORP NO SUCCESSOR FOR MR RIZZO WAS NAMED 9302040095 930204 WHO'S NEWS CULLEN/FROST BANKERS INC CULLEN/FROST BANKERS INC SAN ANTONIO TEXAS THIS BANK HOLDING COMPANY NAMED RE FAWCETT JR PRESIDENT OF ITS DALLAS BANK AND ROBERT T HUTHNANCE PRESIDENT OF ITS AUSTIN BANK OPERATIONS MR FAWCETT HAD BEEN SENIOR EXECUTIVE VICE PRESIDENT OF THE COMPANY'S FROST NATIONAL BANK OF SAN ANTONIO MR FAWCETT REPLACES MR HUTHNANCE AT CULLEN/FROST BANK OF DALLAS MR HUTHNANCE MOVES TO AUSTIN BECAUSE OF CULLEN/FROST'S PLANNED ACQUISITION OF SOME BRANCHES OF NEW FIRST CITY TEXASAUSTIN ERNEST DEAL FORMER CHAIRMAN AND CHIEF EXECUTIVE OF NEW FIRST CITY TEXASAUSTIN WILL BECOME CHAIRMAN OF AN AUSTIN ADVISORY BOARD FOR THE BANK CULLEN/FROST SAID 9302040094 930204 BIGGER INCREASE IN TOP TAX RATE IS BEING STUDIED SOME CLINTON AIDES SUGGEST RISE BEYOND 36 LEVEL PROPOSED IN CAMPAIGN BY JEFFREY H BIRNBAUM AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SOME OF PRESIDENT CLINTON'S ADVISERS ARE RAISING THE POSSIBILITY OF INCREASING THE TOP TAX RATE ON WEALTHY INDIVIDUALS BEYOND THE 36 THAT HE PROPOSED DURING HIS ELECTION CAMPAIGN AT THE SAME TIME MR CLINTON IS UNLIKELY TO ACCEPT THE IDEA OF DIRECTLY LIMITING THE GROWTH OF SOCIAL SECURITY BENEFITS A PROPOSAL THAT HIS AIDES HAVE DISCUSSED BUT THAT HAS RAISED HACKLES IN CONGRESS AND THROUGHOUT THE COUNTRY BUT HE STILL MIGHT CALL FOR INCREASING THE AMOUNT OF RETIREMENT BENEFITS SUBJECT TO TAXATION FOR UPPERINCOME SENIORS THE MERITS OF RAISING THE TOP TAX RATE ABOVE 36 HAVEN'T YET BEEN WIDELY DEBATED BY THE PRESIDENT'S ECONOMIC ADVISERS AND IT DOESN'T APPEAR MR CLINTON HAS DECIDED TO ENDORSE THE IDEA IN ADDITION SOME POWERFUL DEMOCRATS ON CAPITOL HILL ARE SIGNALING THEY HAVE RESERVATIONS BUT WITH THE PRESIDENT BEING BUFFETED FOR CONTEMPLATING TAX INCREASES ON MIDDLECLASS AMERICANS HIS ADVISERS ARE STRUGGLING TO CONFIGURE A PACKAGE THAT ACCOMPLISHES THEIR AMBITIOUS DEFICITCUTTING GOALS AND ALSO IS PERCEIVED BY AMERICANS AS FAIR THE PRESIDENT IS JUST BEGINNING TO MAKE FINAL DECISIONS ABOUT WHAT HE WILL PROPOSE IN HIS ECONOMIC PLAN WHICH HE WILL OUTLINE ON FEB DURING HIS ELECTION CAMPAIGN MR CLINTON STRESSED THE VIEW THAT UPPERINCOME INDIVIDUALS WERE TREATED TOO LENIENTLY BY CHANGES MADE IN THE TAX CODE IN THE 1980S HE PROMISED TO MAKE UP FOR THAT BY RAISING THE TOP MARGINAL INCOME TAX RATE ON THE NATION'S HIGHESTINCOME INDIVIDUALS TO 36 FROM A STATED MAXIMUM OF 31 HE ALSO PLEDGED TO IMPOSE A SURTAX ON PEOPLE EARNING 1 MILLION A YEAR OR MORE IN A SPEECH TO EMPLOYEES AT HIS BUDGET OFFICE MR CLINTON REITERATED THE THEMES OF HIS CAMPAIGN BEFORE I ASK WORKING AMERICANS TO WORK HARDER AND PAY MORE HE SAID I WILL ASK THE ECONOMIC ELITE WHO MADE MORE MONEY AND PAID LESS IN TAXES TO PAY THEIR FAIR SHARE IN RECENT DAYS ATTENTION HAS BEEN FOCUSED ON THE STRONG MOVEMENT INSIDE THE CLINTON ADMINISTRATION TOWARD IMPOSING A NEW BROADBASED ENERGY TAX WHICH WOULD RAISE CONSIDERABLE REVENUE BUT WOULD DISPROPORTIONATELY BURDEN THE LOWERINCOME AND MIDDLEINCOME PEOPLE THAT MR CLINTON HAD SAID IN THE CAMPAIGN HE MOST WANTED TO ASSIST AS A RESULT SOME CLINTON ADVISERS ARE INCREASINGLY EAGER FOR A PACKAGE THAT CLEARLY CALLS FOR SACRIFICES FROM EVERYONE BUT ESPECIALLY THE WEALTHIEST PEOPLE SO IN RECENT DAYS THEY HAVE DISCUSSED THE IDEA OF RAISING THE TOP RATE HIGHER THAN 36 THOUGH IT ISN'T CLEAR HOW HIGH THE AIDES ARE THINKING OF RAISING IT WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID MR CLINTON PROBABLY WOULD CALL FOR RAISING THE TOP TAX RATE TO 36 BUT DECLINED TO BE MORE DEFINITIVE THE PRESIDENT HAS NOT MADE ALL THE DECISIONS YET HE SAID HE SAID IN THE CAMPAIGN THAT HE WAS GOING TO RAISE TAXES ON THE WEALTHIEST AMERICANS AND HE'S GOING TO RAISE TAXES ON THOSE WHO BENEFITED IN THE 1980S AND THAT'S WHAT HE INTENDS TO DO FOR SIMILAR REASONS AN IDEA FOR LIMITING THE RISE IN SOCIAL SECURITY BENEFITS HAS APPARENTLY BEEN SHELVED THE ADMINISTRATION'S EFFORT TO SPREAD THE PAIN OF DEFICITREDUCTION AROUND HAD LED SOME CLINTON ADVISERS TO CONSIDER LIMITING THE ANNUAL COSTOFLIVING INCREASE FOR SOCIAL SECURITY AND GOVERNMENTEMPLOYEE PENSIONS BUT SINCE WORD LEAKED OUT ABOUT THE IDEA A PARADE OF LAWMAKERS HAS TROOPED ONTO TELEVISION TALK SHOWS AND HAS SPOKEN TO MR CLINTON AND HIS STAFF TO OPPOSE THE SUGGESTION IN ADDITION SWITCHBOARDS ON CAPITOL HILL AND THE WHITE HOUSE HAVE BEEN FLOODED WITH CALLS FROM SENIOR CITIZENS PROTESTING IT STILL UPPERINCOME SENIORS COULD BE SUBJECT TO HIGHER TAXES AS ONE OPTION MR CLINTON'S ADVISERS ARE THINKING OF TAXING 85 OF SOCIAL SECURITY BENEFITS PAID TO COUPLES EARNING MORE THAN 32000 A YEAR AND INDIVIDUALS WITH INCOMES ABOVE 25000 UP FROM THE 50 OF BENEFITS THAT ARE CURRENTLY TAXED ON THE NOTION OF FURTHER RAISING THE TOP TAX RATE DEMOCRATS ON CAPITOL HILL ARE DIVIDED SOME SENATE DEMOCRATS NOTABLY SEN JAMES SASSER D TENN CHAIRMAN OF THE SENATE BUDGET COMMITTEE ARE CALLING FOR A TOP RATE HIGHER THAN 36 MR SASSER'S SUGGESTION OF A HIGHER RATE IN AN ARTICLE HE WROTE FOR THE NEW YORK TIMES REPORTEDLY INTRIGUED MR CLINTON BUT OTHER SENATE DEMOCRATS ARE LEERY I WILL SUPPORT A 36 RATE BY THE PRESIDENT SAID SENATE DEMOCRATIC LEADER GEORGE MITCHELL OF MAINE I DON'T THINK IT'S A GOOD IDEA TO GO BEYOND THAT AND SEN DANIEL MOYNIHAN D NY THE NEW FINANCE COMMITTEE CHAIRMAN HAS CAUTIONED AGAINST RAISING THE TOP RATE ANY HIGHER THAN THE 36 YOU RAISE THAT TOP RATE AND THE LOOPHOLES COME ROARING AT YOU HE SAID RECENTLY THIRTYSIX SEEMS TO ME DOABLE SIMILARLY HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI SAYS THAT A RATE HIGHER THAN 36 WOULD BE UNPALATABLE AND IN MEETINGS WITH LAWMAKERS TREASURY SECRETARY LLOYD BENTSEN HAS CONTINUED TO TALK OF A 36 TOP TAX RATE FEWER THAN 4 OF ALL TAXPAYERS ARE TAXED AT THE TOP STATUTORY MARGINAL RATE NOW AT 31 IT APPLIES TO TAXABLE INCOME THAT IS AFTER DEDUCTIONS ABOVE 53500 FOR INDIVIDUALS AND 89150 FOR COUPLES LAST YEAR THE CLINTON CAMPAIGN TALKED ABOUT IMPOSING THE 36 RATE ON AN EVEN SMALLER FRACTION OF THE POPULATION COUPLES WITH INCOME BEFORE DEDUCTIONS OF 200000 AND MORE A YEAR TAX RATES ARE APPLIED AGAINST INCOME AFTER DEDUCTIONS ALSO LAST YEAR CONGRESS PASSED BUT PRESIDENT BUSH VETOED A BILL THAT WOULD HAVE PUSHED THE TOP MARGINAL TAX RATE TO 36 ON TAXABLE INCOME OF 115000 FOR INDIVIDUALS AND 140000 FOR COUPLES THE BILL ALSO WOULD HAVE IMPOSED A 10 SURTAX ON TAXABLE INCOME ABOVE 1 MILLION RAISING THE EFFECTIVE RATE FOR THOSE TAXPAYERS TO 396 THAT PROPOSAL WOULD HAVE RAISED ABOUT 14 BILLION A YEAR OR ABOUT 60 BILLION OVER FIVE YEARS ACCORDING TO THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9302040093 930204 MARKETING & MEDIA ADVERTISING CELLULAR PHONE FIRMS MULL WAYS TO CONTAIN HEALTHSCARE FALLOUT BY KEVIN GOLDMAN CUSTOMERS OF MCCAW CELLULAR COMMUNICATIONS ARE LIKELY TO RECEIVE A LITTLE SOMETHING EXTRA WITH THEIR BILLS NEXT MONTH A LETTER FROM THE COMPANY AIMED AT CALMING THEIR RISING FEARS THAT USING CELLULAR PHONES MAY CAUSE BRAIN TUMORS SCARY NEWSPAPER HEADLINES AND REPORTS EACH EVENING ON THE NETWORK NEWSCASTS ASKING ABOUT POSSIBLE LINKS BETWEEN CELLULAR PHONE SERVICE AND BRAIN CANCER HAVE FORCED SOME LEADING CELLULAR COMPANIES INTO SPIN CONTROL EXECUTIVES OF MCCAW THE NATION'S LARGEST CELLULAR SERVICE COMPANY WERE HUDDLED IN MEETINGS YESTERDAY AT THE COMPANY'S HEADQUARTERS IN KIRKLAND WASH OTHER THAN THE BILLSTUFFERS MCCAW IS EVEN CONTEMPLATING A PAID ADVERTISING CAMPAIGN USING SOCALLED ADVERTORIALS THAT WOULD APPEAR IN NEWSPAPERS NATIONWIDE WE'RE GOING TO COMMUNICATE DIRECTLY WITH OUR CUSTOMERS SAYS A MCCAW SPOKESMAN THE DILEMMA FACING THE MUSHROOMING YET ELITE CELLULAR PHONE INDUSTRY IS A TEXTBOOK CASE OF HOW QUICKLY A HEALTH SCARE REAL OR IMAGINED CAN CAUSE STATIC IN A ROBUST BUSINESS MARKETERS MUST QUICKLY DECIDE WHETHER ADVERTISING IS AN EFFECTIVE COUNTERPUNCH TO NEGATIVE NEWS STORIES OR WHETHER NEW ADS WOULD MERELY CALL ATTENTION TO A CLAIM THAT IS AFTER ALL UNSUBSTANTIATED BY HARD SCIENTIFIC EVIDENCE EITHER WAY IT IS A TOUGH CALL THE CONVENTIONAL PHONES ARE RINGING OFF THE HOOK AS THE CELLULAR PHONE INDUSTRY GRAPPLES WITH THE DEBATE OTHER THAN MCCAW GTE'S CELLULAR BUSINESSES AND ITS THREE UNITS GTE MOBILENET CONTEL CELLULAR AND CELLULAR ONE ARE ALSO PLANNING BILLSTUFFERS TO ASSUAGE ANY CONCERNS ON THE PART OF MORE THAN A MILLION CUSTOMERS ONLY MOTOROLA SAYS IT WON'T ADDRESS THE OUTCRY DIRECTLY THROUGH ADVERTISING BUT WILL INSTEAD STICK TO ITS REGULAR CAMPAIGN USING SENIOR GOLFER LEE TREVINO AS A SPOKESMAN I WOULDN'T SAY THERE ISN'T A NEED A MOTOROLA SPOKESMAN CONCEDES BUT WE'RE PLANNING NOTHING SPECIAL YESTERDAY THE WASHINGTONBASED CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION SAID IT WASN'T CONSIDERING AN AD CAMPAIGN THAT WOULD ADDRESS THE ISSUE FOR THE ENTIRE INDUSTRY ALTHOUGH IT DIDN'T RULE OUT THE POSSIBILITY OF ULTIMATELY LAUNCHING ONE AS FOR NOW HOWEVER WE HAVE PROVIDED OUR MEMBERS WITH MATERIAL THEY CAN SEND TO THEIR SUBSCRIBERS SAYS THOMAS E WHEELER PRESIDENT OF THE ASSOCIATION AND WE HAVE URGED ALL OUR MEMBERS TO COMMUNICATE DIRECTLY WITH THEIR CUSTOMERS WHY NOT ADVERTISE THERE IS A TIME FOR EVERYTHING HE SAYS AND I RESERVE THE RIGHT TO CHANGE MY MIND BUT THERE ARE OTHER WAYS TO GET THE MESSAGE ACROSS THAT NONADVERTISING STRATEGY IS A MISTAKE PUBLIC RELATIONS AND ADVERTISING EXECUTIVES CONTEND DURING A CRISIS SAYS RICHARD EDELMAN THE PRESIDENT OF EDELMAN PUBLIC RELATIONS WORLDWIDE PEOPLE DON'T WANT STYLE IN THEIR ADS THEY WANT INFORMATION YET THERE IS LITTLE IN THE WAY OF CONCLUSIVE SCIENTIFIC INFORMATION THAT COULD APPEAR IN THE ADS AND QUELL THE DEBATE IT'S A HORRIBLE SITUATION FOR THE INDUSTRY SAYS MR EDELMAN WHOSE FIRM HANDLES FUJITSU CELLULAR PHONES WHICH HAVE A 5 SHARE OF THE MARKET TO GET A MESSAGE OUT TO THE PUBLIC UNFILTERED ADVERTISING IS A MUST HE SAYS BUT HE ADDS ANY ADVERTISING MUST BE ISSUEORIENTED AND ALL THERE IS NOW IS DEBATING SCIENTISTS ROY GRACE CHAIRMAN OF AD AGENCY GRACE & ROTHSCHILD SAYS ADVERTISING IS A MUST I WOULD ANSWER THIS NEGATIVE PUBLICITY AS QUICKLY AS POSSIBLE HIS PRESCRIPTION CELLULAR COMPANIES SHOULD HIRE THEIR OWN SCIENTISTS AND RELEASE THEIR OWN FINDINGS ON THE QUANDARY BUT SCIENCE CAN'T TYPICALLY BE BOUGHT OUTRIGHT AND REAL RESEARCH TAKES TIME THE CELLULAR PHONE INDUSTRY IS HARDLY THE FIRST BUSINESS TO BE UNDER SIEGE FROM NEGATIVE PUBLICITY AFTER SEEMINGLY ODD CLAIMS ABOUT HEALTH RISKS LAST NOVEMBER A SMALL SCIENTIFIC STUDY SUGGESTED THAT MEN'S REGULAR USE OF ELECTRIC RAZORS MAY INCREASE THEIR RISK OF DEVELOPING LEUKEMIA COMPANIES THAT MAKE RAZORS WERE SILENT ON THE ISSUE AND THE ALARMING PROSPECT QUICKLY FADED FROM THE PUBLIC MIND THE CELLULAR PHONE CONTROVERSY IS SOMEWHAT DIFFERENT HOWEVER IT FIRST CAME UP ON A NATIONWIDE TALK SHOW CNN'S LARRY KING LIVE IN AN APPEARANCE BY A MAN WHO ALLEGED HIS WIFE'S USE OF HER PORTABLE PHONE HAD CAUSED OR CONTRIBUTED TO HER FATAL BRAIN CANCER THE TOPIC HAS BEEN DEBATED THIS WEEK BEFORE CONGRESS AND CONTINUES TO GET AIRPLAY ON MANY RADIO CALLIN SHOWS INCLUDING THOSE THAT COURTEOUSLY BUMP CELLULAR PHONE USERS AHEAD OF CALLERS ON CONVENTIONAL PHONES WHO ARE PUT ON HOLD HOWEVER ADVERTISING MAY BE AT BEST AN UNPLEASANT WAY TO QUELL CUSTOMER FEARS I WOULDN'T LIKE IT SAYS ART LESSER PRESIDENT OF CAR PHONE CENTER A CELLULARPHONE DEALER IN REDWOOD CITY CALIF BUT IT MIGHT BE THE ONLY WAY TO ADVERTISE WOULD GIVE THE IMPRESSION THERE IS A PROBLEM NOT TO ADVERTISE WOULD BE TO IGNORE IT ENTIRELY HE SAYS EITHER WAY ISN'T GOOD SEVENTEEN REVIEW SEVENTEEN MAGAZINE SAID IT HAS NARROWED ITS SEARCH FOR AN AD AGENCY TO THREE FINALISTS GRYBAUSKAS PARTNERS NEW YORK OMON NEW YORK AND THE PHILADELPHIA OFFICE OF WIEDEN & KENNEDY SEVENTEEN IS PUBLISHED BY KIII COMMUNICATIONS GOODWILL SPONSOR REEBOK INTERNATIONAL STOUGHTON MASS HAS SIGNED UP TO SPONSOR TED TURNER'S GOODWILL GAMES WHICH WILL BE BROADCAST THIS SUMMER FROM ST PETERSBURG RUSSIA ON THE ABC NETWORK AND TURNER BROADCASTING SYSTEM'S TBS CABLE NETWORK DAYS INNS DAYS INNS OF AMERICA SAID IT HAS ENDED THE REVIEW OF ITS ESTIMATED 9 MILLION AD ACCOUNT BY RETAINING THE INCUMBENT AGENCY ATLANTABASED JOEY REIMAN AGENCY A NEW DAYS INN CAMPAIGN TARGETING SENIORS STARS WILLARD SCOTT THE TODAY SHOW WEATHERMAN AND VETERAN ENDORSER IT BREAKS MONDAY ON THE NBC NETWORK ON TODAY IN FACT WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES PROMOTED SCOTT MESSINGER EXECUTIVE VICE PRESIDENT AND DIRECTOR OF CLIENT SERVICES TO THE POST OF MANAGING DIRECTOR OF ITS NEW YORK OFFICE 9302040092 930204 INTERNATIONAL US RULES JAPAN VIOLATED AGREEMENT ON AVIATION THREATENS RETALIATION BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT RULED THAT JAPAN HAS VIOLATED ITS BILATERAL AVIATION AGREEMENT WITH THE US BY RESTRICTING CERTAIN UNITED AIRLINES FLIGHTS AND THREATENED TO TAKE RETALIATORY ACTION AGAINST JAPANESE CARRIERS IN ABOUT TWO WEEKS THE CLINTON ADMINISTRATION IN THE FIRST TEST OF ITS INTERNATIONAL AVIATION POLICY SERVED NOTICE ON JAPAN AND OTHER NATIONS THAT IT IS EVERY BIT AS DETERMINED AS THE BUSH ADMINISTRATION TO PROTECT US AIRLINES' ACCESS TO OVERSEAS MARKETS PARTICULARLY AT A TIME WHEN THEY ARE TRYING TO PULL OUT OF A FINANCIAL TAILSPIN THE UNITED CASE MOREOVER IS SEEN BY US OFFICIALS AS SYMPTOMATIC OF GROWING STRAINS IN USJAPANESE TRADE RELATIONS TRANSPORTATION SECRETARY FEDERICO PENA DECIDED YESTERDAY THAT THE JAPANESE GOVERNMENT VIOLATED THE TERMS OF THE BILATERAL AGREEMENT LAST SEPTEMBER WHEN IT REJECTED THE TOKYOSYDNEY LEG OF UNITED'S PROPOSED NEW YORKTOYKOSYDNEY SERVICE ON NOV 5 UNITED A UNIT OF UAL CORP FILED A COMPLAINT WITH THE TRANSPORTATION DEPARTMENT US AND JAPANESE NEGOTIATORS WERE UNABLE TO RESOLVE THE DISPUTE LAST MONTH LAST NIGHT MR PENA SAID THE US WILL DECIDE AFTER 10 DAYS WHETHER TO IMPOSE SANCTIONS AGAINST JAPANESE CARRIERS HE CALLED FOR PUBLIC COMMENT ON WHAT SORT OF SANCTIONS SHOULD BE TAKEN ONE OPTION WOULD BE TO REQUIRE JAPANESE CARRIERS TO FILE TRAFFIC REPORTS ON FLIGHTS FROM US AIRPORTS TO THIRD COUNTRIES ANOTHER WOULD BE TO RESTRICT JAPAN AIR LINES' ABILITY TO PICK UP PASSENGERS IN LOS ANGELES AND CARRY THEM ON TO BRAZIL JUST AS JAPAN HAS RESTRICTED UNITED'S ABILITY TO PICK UP SYNDEYBOUND PASSENGERS IN TOYKO CLEARLY THE ADMINISTRATION IS INTENT ON FORCING THE JAPANESE BACK TO THE NEGOTIATING TABLE IT IS UNFORTUNATE THAT THE JAPANESE HAVE CHOSEN TO PROCEED WITH THIS COURSE OF CONDUCT SAID MR PENA OF TOKYO'S ACTION AGAINST UNITED WHILE WE ARE PREPARED TO MOVE FORWARD WITH AN APPROPRIATE RESPONSE WE WILL CONTINUE TO SEEK A CONSTRUCTIVE RESOLUTION THROUGH NEGOTIATIONS THE ADMINISTRATION CONCERNED ABOUT BEING SEEN AS PROTECTIONIST BY US TRADING PARTNERS WOULD LIKE TO AVOID AN AVIATION TRADE WAR WITH JAPAN ON THE OTHER HAND US OFFICIALS DARE NOT YIELD TO THE JAPANESE IN THE UNITED CASE BECAUSE AUSTRALIA AND OTHER NATIONS WOULD DEMAND SIMILAR CONCESSIONS IF THEY DID AVIATION CONSULTANT JON ASH SAID THE ADMINISTRATION HANDLED THE MATTER DEFTLY THEY HELD TO THE PRINCIPLE BUT LEFT A CRACK IN DOOR FOR THE JAPANESE TO TRY AND COME TO AN AMICABLE RESOLUTION HE SAID I THINK IT'S GOING TO BE VERY TOUGH THEY'VE HAD A COUPLE OF ROUNDS OF NEGOTIATIONS ALREADY IT WILL DEPEND IN PART ON HOW HARD UNITED WANTS TO PUSH THE ISSUE A JAPANESE FOREIGN MINISTRY OFFICIAL IN TOKYO SAID HE COULDN'T COMMENT IN DETAIL BECAUSE HE HADN'T YET STUDIED MR PENA'S DECISION BUT HE ADDED THAT WE WOULD LIKE TO BE ABLE TO RESOLVE THIS BY TALKING AMONG CONCERNED OFFICIALS AND NOT BY RELYING ON ANY POLITICAL DECISION YESTERDAY'S ACTION INDICATES HOW MR PENA IS LIKELY TO DEAL WITH ANOTHER EQUALLY TOUCHY CASE INVOLVING NORTHWEST AIRLINES' SERVICE BEYOND JAPAN TO AUSTRALIA NORTHWEST OPERATES THREE NEW YORKOSAKASYDNEY FLIGHTS A WEEK AUSTRALIA HAS PROPOSED AMONG OTHER THINGS TO PROHIBIT THE US CARRIER FROM OPERATING ONE OF THE FLIGHTS AND TO LIMIT THE NUMBER OF SYDNEYBOUND PASSENGERS THE OTHER TWO FLIGHTS CAN PICK UP IN OSAKA NORTHWEST HAS ASKED THE TRANSPORTATION DEPARTMENT TO RETALIATE BY BANNING FLIGHTS BY QANTAS AIRWAYS AUSTRALIA'S NATIONAL CARRIER TO LOS ANGELES QANTAS HAS 10 SYDNEYLOS ANGELES FLIGHTS WEEKLY US OFFICIALS WILL FLY TO CANBERRA THIS WEEKEND FOR TALKS WITH THE AUSTRALIANS IN AN ATTEMPT TO RESOLVE THE DISPUTE NORTHWEST IS A UNIT OF NWA INC WHICH IN TURN IS A UNIT OF WINGS HOLDINGS INC 9302040091 930204 US PROPOSES HEADPROTECTION RULES TO STRENGTHEN CURRENT AUTO STANDARDS BY BRUCE INGERSOLL AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT PROPOSED A COMPLEX PACKAGE OF RULES TO BETTER PROTECT DRIVERS AND PASSENGERS IN ALL CARS LIGHT TRUCKS VANS AND OTHER PASSENGER VEHICLES FROM HEAD INJURIES THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID THE PROPOSAL WHICH COULD REQUIRE A COSTLY REDESIGN OF DOMESTIC AND IMPORTED PASSENGER VEHICLES ON THE US MARKET COULD SAVE AN ESTIMATED 1400 LIVES A YEAR THE AGENCY ESTIMATES THAT THE PROPOSED RULES WOULD ADD 45 TO CARSTICKER PRICES AND 60 TO THE PRICES OF VANS AND PICKUPS THE PROPOSED HEADPROTECTION RULES WOULD GO FAR BEYOND THE TRANSPORTATION DEPARTMENT AGENCY'S CURRENT STANDARDS WHICH ARE DESIGNED TO PROTECT OCCUPANTS FROM STRIKING INSTRUMENT PANELS SEAT BACKS HEAD RESTS AND GLOVE COMPARTMENTS AND INJURING THEMSELVES THE PROPOSAL WOULD SET PERFORMANCE STANDARDS AND TESTING PROCEDURES TO EVALUATE COMPLIANCE WITH THEM TO MEET THOSE STANDARDS AUTO MAKERS WOULD HAVE TO ADD PADDING TO THE UPPER PARTS OF INTERIOR CABINS WHICH COULD REDUCE PASSENGER HEADROOM BY AS MUCH AS AN INCH A FORD MOTOR CO SPOKESWOMAN SAID THE AGENCY GAVE THE AUTO MAKERS AND CONSUMERSAFETY ADVOCATES 60 DAYS TO COMMENT ON THE PROPOSAL ALTHOUGH THE FINAL REGULATIONS WON'T BE ISSUED FOR SEVERAL MONTHS THE AUTO INDUSTRY IS CONCERNED ABOUT THE DEADLINE FOR MEETING THE STANDARDS UNDER A 1991 LAW THAT ORDERED IMPROVEMENTS IN HEAD PROTECTION THE INDUSTRY HAS A TWOYEAR PHASEIN PERIOD IN WHICH TO COMPLY ACCORDING TO AN AGENCY SPOKESMAN WE WANT TO HAVE ADEQUATE TIME SAID PAM KUEBER A FORD SPOKESWOMAN WHO SPECIALIZES IN SAFETY ISSUES IT MAY MEAN REDESIGNING OUR ROOF LINES TO ACCOMMODATE THE PADDING AND PROVIDE ADDITIONAL HEADROOM THE PROPOSAL AMONG OTHER THINGS WOULD VERY LIKELY FORCE THE INDUSTRY TO ROUND OFF SHARP EDGES INSIDE CARS AND TO REDUCE THE STIFFNESS OF CERTAIN INTERIOR COMPONENTS ROUNDING EDGES WON'T POSE MUCH OF A PROBLEM FOR AUTO MAKERS THE TREND IN OUR INDUSTRY IS TO SOFT FLUID FORMS SAID MS KUEBER WE ARE ATTUNED TO THOSE THINGS ALREADY WITHOUT REGULATIONS ALL OF OUR CARS ARE VERY FLUID AND SOFT RESEARCH CONDUCTED BY THE TRAFFICSAFETY AGENCY SHOWS THAT ADDING PADDING TO ROOF SUPPORTS UPPER DOOR FRAMES INTERIORROOF MOLDING AND VISORS IS AN EFFECTIVE WAY TO REDUCE HEAD INJURIES IN CAR CRASHES BUT AGENCY ENGINEERS CAUTIONED THAT ALL CHANGES TO THE INTERIOR MUST BE DONE WITHOUT IMPEDING THE DRIVER'S FIELD OF VISION OR COMPROMISING THE VEHICLE'S STRUCTURAL INTEGRITY OUR SAFETY PEOPLE HAVE BEEN WORKING WITH NHTSA ON THIS MS KUEBER SAID THIS IS NOT A SURPRISE CHRYSLER CORP DESCRIBED THE PROPOSAL AS DIRECTIONALLY CORRECT AND SAID IT HAS BEEN WORKING WITH THE AGENCY ON THE NEW RULES 9302040090 930204 BUSINESS BRIEF IMCO RECYCLING INC FOURTHPERIOD NET ROSE 34 ON EXPANDED PLANT CAPACITY IMCO RECYCLING INC SAID BENEFITS FROM A CAPITAL SPENDING PROGRAM TO EXPAND AND UPGRADE ITS PROCESSING CAPACITY HELPED INCREASE 1992 FOURTHQUARTER NET INCOME 34 TO 17 MILLION OR 15 CENTS A SHARE FROM 13 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 35 TO 138 MILLION FROM 102 MILLION FOR THE YEAR THE COMPANY EARNED 75 MILLION OR 67 CENTS A SHARE ON REVENUE OF 602 MILLION COMPARED WITH NET OF 56 MILLION OR 52 CENTS A SHARE ON REVENUE OF 492 MILLION IN 1991 THE IRVING TEXAS ALUMINUM RECYCLER SAID IT EXPECTS FURTHER GAINS IN 1993 PROCESSING VOLUME WILL INCREASE SHARPLY DUE TO ADDITIONAL CAPACITY FROM A PLANT IN UHRICHSVILLE OHIO THE COMPANY SAID 9302040089 930204 BUSINESS BRIEF ELI LILLY & CO DRUG FIRM'S 4THPERIOD NET IS FLAT AFTER WRITEDOWN ELI LILLY & CO REPORTED FLAT FOURTHQUARTER EARNINGS AFTER A CHARGE TO WRITE DOWN THE VALUE OF AN INVESTMENT THE INDIANAPOLIS PHARMACEUTICAL CONCERN'S NET INCOME WAS 3112 MILLION OR 106 A SHARE COMPARED WITH 3111 MILLION OR 106 A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED A 461 MILLION PRETAX CHARGE TO COVER THE WRITEDOWN OF AN INVESTMENT IN CENTOCOR INC SALES ROSE 53 TO 166 BILLION FROM 157 BILLION FOR THE YEAR RESTRUCTURING AND OTHER SPECIAL CHARGES GAVE LILLY NET OF 7087 MILLION OR 241 A SHARE DOWN FROM 131 BILLION OR 450 A SHARE A YEAR EARLIER REVENUE ROSE TO 617 BILLION FROM 573 BILLION THE EARNINGS DECLINE WAS THE FIRST FULLYEAR DECLINE THE COMPANY HAS RECORDED SINCE 1960 A SPOKESWOMAN SAID 9302040087 930204 TECHNOLOGY BRIEF OCTAMER INC EARLY STUDIES SHOW DRUGS TARGET STRUCTURES OF HIV CLOSELY HELD OCTAMER INC TIBURON CALIF SAID TEST TUBE STUDIES SHOW ITS FAMILY OF NOVEL DRUGS CAN SUCCESSFULLY TARGET AND BREAK THE FINGERS OF HIV THE VIRUS THAT CAUSES AIDS LOOSENING ITS INFECTIOUS GRIP ON CELLS OF THE HUMAN IMMUNE SYSTEM THE DRUGS KNOWN AS CNITROSO COMPOUNDS TARGET AND BREAK CERTAIN CHEMICAL STRUCTURES ON THE VIRUS KNOWN AS ZINC FINGERS RENDERING THE VIRUS DEFECTIVE AND UNABLE TO BIND AND INFECT CELLS OF THE HUMAN IMMUNE SYSTEM THE DRUGS WHICH ARE ALSO BEING DEVELOPED FOR THEIR POTENTIAL AS ANTICANCER COMPOUNDS SHOW LITTLE TOXIC EFFECT ON NORMAL HUMAN CELLS THE STUDY BY ERNEST KUN OF OCTAMER AND WILLIAM G RICE OF THE NATIONAL CANCER INSTITUTE IS REPORTED IN THE CURRENT ISSUE OF THE BRITISH JOURNAL NATURE 9302040086 930204 TECHNOLOGY & HEALTH STUDY CONFIRMS MOST ULCERS ARE CAUSED BY A BACTERIUM CURABLE BY ANTIBIOTICS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY CONFIRMED THAT MOST PEPTIC ULCERS ARE CAUSED BY A BACTERIUM AND CAN BE PERMANENTLY CURED BY ANTIBIOTICS A TEAM OF GASTROENTEROLOGISTS IN VIENNA REPORTED THEY HAD USED CONVENTIONAL THERAPY TO HEAL PEPTIC ULCERS IN 104 PATIENTS THEY THEN USED TWO ANTIBIOTICS TO ERADICATE A BACTERIUM CALLED H PYLORI IN 52 OF THE PATIENTS THE RESEARCHERS WERE ABLE TO MONITOR 50 OF THESE PATIENTS FOR A YEAR AND FOUND THAT ONLY FOUR SUFFERED A RECURRENCE OF AN ULCER IN CONTRAST THE OTHER 52 PATIENTS WHO ALSO HAD H PYLORI INFECTIONS WERE TREATED WITH INEFFECTIVE PLACEBO PILLS OF THE 49 PATIENTS MONITORED FOR THE FOLLOWING YEAR 42 DEVELOPED RECURRENCES HENCE ONLY 8 OF PATIENTS TREATED WITH ANTIBIOTICS SUFFERED RECURRENCES OF ULCERS WHEREAS 86 OF THE PLACEBOTREATED PATIENTS DEVELOPED RECURRENCES THE RESULTS IN AUSTRIA CONFIRM A US STUDY REPORTED IN MAY IN WHICH ANTIBIOTICS EFFECTIVELY ERADICATED H PYLORI INFECTIONS IN 55 OF 62 PEPTIC ULCER PATIENTS NONE OF THOSE 55 PATIENTS DEVELOPED A RECURRENCE OF AN ULCER IN THE FOLLOWING YEAR THE AUSTRIAN REPORT WAS PUBLISHED IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE ACCOMPANIED BY AN EDITORIAL BY GASTROENTEROLOGIST DAVID Y GRAHAM OF THE VETERANS AFFAIRS MEDICAL CENTER IN HOUSTON DR GRAHAM HEADED THE TEAM THAT CONDUCTED THE US EXPERIMENT LAST YEAR IN HIS EDITORIAL DR GRAHAM SAID H PYLORI INFECTION IS THE MOST COMMON KNOWN CAUSE OF PEPTIC ULCER AND ACCOUNTS FOR THE MAJORITY OF CASES A LESSCOMMON CAUSE OF PEPTIC ULCERS IS DRUGS USED TO TREAT INFLAMMATORY CONDITIONS SUCH AS ARTHRITIS PEPTIC ULCERS WHICH HIT ONE OF EVERY 10 PERSONS AT SOME TIME IN THEIR LIFE CAN OCCUR IN THE STOMACH WHERE THEY'RE CALLED GASTRIC ULCERS OR AT THE BEGINNING OF THE SMALL INTESTINE WHERE THEY'RE KNOWN AS DUODENAL ULCERS ERADICATION OF H PYLORI INFECTION CHANGES THE NATURAL HISTORY OF GASTRIC OR DUODENAL ULCERS THE DISEASE IS CURED AND THE RISK OF RECURRENCE IS VIRTUALLY ELIMINATED DR GRAHAM WROTE GASTRIC ACID LONG THOUGHT TO BE THE MAIN CAUSE OF PEPTIC ULCERS IS STILL AN IMPORTANT FACTOR BUT ITS ROLE IS LARGELY THAT OF A CONTRIBUTOR TO THE CONSEQUENCES OF H PYLORI INFECTION AND IT IS NOT USUALLY A DOMINANT FACTOR HE WROTE IN BOTH THE AUSTRIAN AND US EXPERIMENTS AN ACIDBLOCKING DRUG WAS USED IN THE ANTIBIOTICTREATED PATIENTS AND THE PLACEBOTREATED PATIENTS THE DRUG RANITIDINE IS SOLD UNDER THE TRADE NAME ZANTAC BY GLAXO HOLDINGS PLC THE DRUG HELPED HEAL EXISTING ULCERS BUT ONLY THOSE PATIENTS WHOSE H PYLORI INFECTIONS WERE ERADICATED BY ANTIBIOTICS WERE APPARENTLY CURED OF ULCER DISEASE THE CURATIVE ANTIBIOTIC TREATMENT ISN'T EASY TO FOLLOW IN THE AUSTRIAN EXPERIMENT THE PATIENTS TOOK THE TWO ANTIBIOTICS AMOXICILLIN AND METRONIDAZOLE THREE TIMES A DAY FOR 12 DAYS ALONG WITH RANITIDINE DAILY AT BEDTIME FOR AT LEAST SIX WEEKS SIDE EFFECTS INCLUDED DIARRHEA IN SEVEN OF THE 52 PATIENTS THE BENEFIT OF A LASTING REMISSION IN 84 OF THE PATIENTS OUTWEIGHS THE 15 RATE OF SIDE EFFECTS DECLARED ENNO HENTSCHEL AND HIS COLLEAGUES AT THE UNIVERSITIES OF VIENNA AND GRAZ MEDICAL SCHOOLS 9302040085 930204 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ALL BUSINESSES IN RUSSIA MUST PAY 3 OF THEIR REVENUES TO A NEW AGRICULTURE SUPPORT FUND TO HELP THE AILING SECTOR AS FARM OUTPUT FELL LAST YEAR AND THE INFLATION RATE EXCEEDED 2000 MANY RUSSIANS ARE STRUGGLING TO PUT FOOD ON THE TABLE AND IN AN EFFORT TO HOLD DOWN PRICES OF FOOD THE GOVERNMENT IMPOSED CONTROLS ON BREAD AND GRAIN PRICES A COMPROMISE WITH OFFICIALS WHO FAVORED REINTRODUCING WIDER CONTROLS THE MOVES FOLLOWED RECENT MEASURES SUCH AS HIGHER SUBSIDIES TO COLLECTIVE FARMS PARTIAL CANCELLATION OF FARM DEBTS AND COMPENSATION FOR RISING FUEL COSTS FARMS NEED AT LEAST 600 BILLION RUBLES 105 BILLION FOR SPRING SOWING WHILE THE GOVERNMENT HAS PLEDGED ONLY 430 BILLION RUBLES AND STILL OWES FARMERS 250 BILLION RUBLES FOR PURCHASES LAST YEAR THOUGH RUSSIA HAS ENCOURAGED PRIVATE FARMS THEY ACCOUNT FOR ONLY 34 OF THE REPUBLIC'S LAND AND AS MANY AS 5000 FAMILY FARMERS GAVE UP LAST YEAR TWO EXECUTIVES AT JAPAN'S PUBLICTELEVISION NETWORK TOOK VOLUNTARY PAY CUTS FOLLOWING EMBARRASSING DISCLOSURES THAT THE BROADCASTER FAKED PARTS OF A DOCUMENTARY IT MADE LAST YEAR IN NEPAL THE ADMISSION BY JAPAN BROADCASTING CORP FOLLOWED NEWS REPORTS THAT THE FILM ON THE REMOTE MUSTANG REGION OF THE HIMALAYAS INCLUDED 60 FICTITIOUS OR STAGED SCENES THE NETWORK PRIDES ITSELF ON HIGHQUALITY PROGRAMMING AND DEPENDS ON PUBLIC CONTRIBUTIONS FOR ITS OPERATING BUDGET THE GOVERNMENT HAS SAID THAT STAGED SCENES COULD LEAD TO CANCELLATION OF BROADCAST LICENSES BAD NEWS FOR GERMANY'S ECONOMY ISN'T LETTING UP REFLECTING REUNIFICATION PRESSURES WESTERN GERMAN WHOLESALE SALES LAST YEAR FELL 18 TO 977 BILLION MARKS 5954 BILLION FOLLOWING TWO YEARS OF SHARP INCREASES MEANWHILE A RESEARCH GROUP PREDICTED WESTERN GERMAN STEEL OUTPUT THIS YEAR WILL FALL 55 TO 35 MILLION METRIC TONS AND STEEL EMPLOYMENT WILL SHRINK 72 TO 144000BUT ONLY IF THE ECONOMY RECOVERS IN THE SECOND HALF AND A TRADE GROUP FORECAST ELECTRONICS OUTPUT WHICH FELL 4 LAST YEAR WILL STAGNATE UKRAINE'S PARLIAMENT APPROVED A PLAN TO REDUCE SOARING INFLATION AND CONTROL THE ECONOMIC CRISIS BY YEAR END THE AUSTERITY PROGRAM IS AIMED AT CUTTING THE BUDGET DEFICIT TO 6 FROM 36 OF GROSS NATIONAL PRODUCT THE INFLATION RATE ABOUT 50 A MONTH HAS BEEN FUELED BY RAPID PRINTING OF THE TEMPORARY CURRENCY THE KARBOVANETS THE PLAN RULES OUT FINANCING STATE SPENDING BY PRINTING MONEY RATHER DEBT WILL BE ALLOWED ONLY THROUGH COMMERCIAL BANK CREDITS FOREIGN LOANS AND ISSUANCE OF SECURITIES SOME PRICE SETTING WILL CONTINUE UNTIL MONOPOLIES HAVE BEEN BROKEN UP THE SUKHOI AIRCRAFT COMPANY WHICH PRODUCES SOME OF THE WORLD'S MOST ADVANCED COMBAT JETS WILL BE THE FIRST OF RUSSIA'S BIG WEAPONS MAKERS TO BE DENATIONALIZED AS THE SUKHOI PLANTS ARE CONSIDERED VITAL TO NATIONAL SECURITY THE SELLOFF WILL BE ACCOMPLISHED OVER THREE YEARS THE BUSINESS DAILY COMMERSANT SAID THE STATE INITIALLY WILL KEEP A 50 STAKE AND SELL THE REST TO PRIVATE INVESTORS EMPLOYEES AND MANAGEMENT THE COMPANY NAMED FOR THE LATE SOVIET AIRCRAFT DESIGNER PAVEL SUKHOI AND RIVAL MIKOYANGUREVICH WHICH MAKES MIG JETS SUPPLIED MOST OF THE FORMER SOVIET AIR FORCE'S AIRCRAFT AMID A SINOBRITISH DISPUTE ABOUT HONG KONG POLITICAL REFORM THAT HELPED CURB PROPERTY SPECULATION THE GOVERNMENT'S LATEST LAND AUCTION OFFERED MIXED SIGNALS THE WINNING BID OF 353 BILLION HONG KONG DOLLARS US4563 MILLION SHOWED THAT THE DISPUTE HASN'T DETERRED HONG KONG DEVELOPERS YET SUGGESTED THEY EXPECT STABLE PROPERTY PRICES FOR A FEW YEARS THE BID FOR THE 17 MILLIONSQUAREFOOT SITE ON THE KOWLOON PENINSULA EXCEEDED COMPARABLE LAND VALUES BY ABOUT 10 JUST ABOVE EXPECTED ANNUAL INFLATION AND THOUGH THE WINNING BID MARKED A RECORD SUM IT WASN'T A HIGH ON THE BASIS OF PRICE PER SQUARE FOOT HK2000 THE BIGGEST PREVIOUS SALE IN 1989 TOTALED HK335 BILLION OR HK2870 A SQUARE FOOT ESTONIA NOMINATED TOOMAS SILDMAE A 34YEAROLD HOTELIER TO BE ECONOMICS MINISTER SUCCEEDING AIN SAARMANN WHO RESIGNED TWO WEEKS AGO FOR HEALTH REASONS THE FORMER SOVIET REPUBLIC HAS EMBARKED ON A FREEMARKET PATH BUT AMID ECONOMIC HARDSHIP A POLL LAST MONTH FOUND 52 OF ESTONIANS DISTRUSTED THE GOVERNMENT 9302040084 930204 ABREAST OF THE MARKET INDUSTRIALS SOAR 4512 OR 136 AS OTHER INDEXES JUMP TO RECORDS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SOARED AS INVESTORS LURED BY SIGNS OF FATTER CORPORATE PROFITS WENT ON A BUYING BINGE THAT PUSHED MOST MAJOR MARKET INDEXES TO NEW HIGHS THE FRENZIED BUYING DROVE THE DOW JONES INDUSTRIAL AVERAGE UP 4512 POINTS OR 136 TO 337379 ITS BIGGEST GAIN THIS YEAR THAT LEFT THE DOW JONES INDUSTRIAL AVERAGE 40 POINTS SHY OF ITS RECORD OF 341321 STANDARD & POOR'S 500STOCK INDEX CATAPULTED 464 POINTS HIGHER TO 44720 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LEAPT 247 POINTS TO 24645 BOTH RECORDS OTHER MARKET INDEXES BARRELLED TO RECORDS AS WELL THE DOW JONES TRANSPORTATION INDEX SOARED 1370 POINTS TO 154248 AND THE DOW JONES UTILITY INDEX GAINED 251 POINTS TO 23204 TO DOW THEORISTS THE GAINS IN THE TRANSPORTATION INDEX ARE PARTICULARLY IMPORTANT BECAUSE THEY SIGNAL THAT THE INDUSTRIAL AVERAGE IS LIKELY TO MOVE HIGHER THE DOW THEORY STATES THAT A STOCK MARKET TREND EXISTS WHEN THE INDUSTRIAL AVERAGE AND THE TRANSPORTATION INDEX ARE MOVING IN THE SAME DIRECTION VOLUME ON THE BIG BOARD WAS EXTREMELY HEAVY WITH 342530000 SHARES CHANGING HANDS IN THE EIGHTH BUSIEST DAY IN WALL STREET HISTORY ADVANCING ISSUES TROUNCED DECLINERS 1317 TO 604 STOCKS ROSE FROM THE OPENING BELL AND CONTINUED TO CLIMB WITH OCCASIONAL PAUSES THROUGHOUT THE DAY THE MARKET GOT A LATE BOOST AFTER THE TREASURY SAID IT WOULD CUT THE SALE OF 30YEAR BONDS IN THE UPCOMING AUCTION TO 925 BILLION FROM 1025 BILLION THE ANNOUNCEMENT HELPED TO DRIVE LONGTERM INTEREST RATES LOWER MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID INDIVIDUAL INVESTORS WERE THE DRIVING FORCE BEHIND YESTERDAY'S SPARKLING RALLY WITH SHORTTERM CERTIFICATES OF DEPOSITS YIELDING A PUNY 25 MANY SMALL INVESTORS HAVE BEEN POURING MONEY INTO STOCK MUTUAL FUNDS THERE IS AN ENORMOUS AMOUNT OF MONEY FLOWING INTO THE HANDS OF AGGRESSIVE MONEY MANAGERS PARTICULARLY MUTUAL FUNDS AND THEY'RE LOOKING FOR WAYS TO PUT IT TO WORK SAID MR METZ MANY MONEY MANAGERS DREW ENCOURAGEMENT FROM HEALTHY CORPORATE PROFIT REPORTS AMONG COMPANIES POSTING GAINS ON THE BASIS OF IMPROVED EARNINGS WERE ALLIEDSIGNAL UP 2 7/8 TO 61 7/8 MINNESOTA MINING & MANUFACTURING WHICH GAINED 1 7/8 TO 100 3/4 AND SALOMON WHICH CLOSED AT 40 UP 3 THE BUOYANT EARNINGS REPORTS ENCOURAGED INVESTORS TO POUR MONEY INTO OTHER STOCKS AS WELL AMONG THE BIGGEST BENEFICIARIES WERE FIRMS WHOSE EARNINGS ARE PARTICULARLY SENSITIVE TO AN ECONOMIC RECOVERY A MORGAN STANLEY INDEX OF CYCLICAL COMPANIES SHOWED THOSE STOCKS GAINED 417 TO A RECORD 25977 ANALYSTS SAID MUTUAL FUNDS ARE SO STUFFED WITH CASH THAT THEY ARE SNAPPING UP STOCKS EVEN IF IT MEANS BREAKING SOME TRADITIONAL RULES ONE CASE IN POINT YESTERDAY WAS CHRYSLER THE AUTO MAKER SOLD 46 MILLION COMMON SHARES TO INVESTORS LATE TUESDAY UP FROM AN ORIGINALLY PLANNED 40 MILLION SHARES WHICH TRADITIONALLY WOULD PRESSURE THE STOCK IN THE COMING DAYS BUT CHRYSLER THE MOSTACTIVE ISSUE ON THE BIG BOARD YESTERDAY INCHED UP 1/4 TO 39 OTHER AUTO STOCKS ALSO FARED WELL GENERAL MOTORS CHALKED UP 1 3/4 TO 39 1/8 AND FORD ADDED 5/8 TO 47 3/4 RECENT NEWS OF A SURGE IN HOUSING STARTS AND HIGHER LUMBER PRICES BOOSTED PRICES OF RELATED STOCKS GEORGIAPACIFIC RACKED UP 2 TO 62 3/4 AND INTERNATIONAL PAPER GAINED 2 1/8 TO 65 3/8 HOME FURNISHING STOCKS ALSO ADVANCED SHAW INDUSTRIES A CARPET MAKER JUMPED 3 3/8 TO 36 7/8 SHRUGGING OFF A DOWNGRADE BY A KIDDER PEABODY ANALYST CITICORP PREFERRED EQUITY REDEMPTION CUMULATIVE STOCK OR PERCS WAS THE THIRD MOSTACTIVE ISSUE ON THE BIG BOARD ENDING UNCHANGED AT 17 7/8 ON VOLUME OF SEVEN MILLION SHARES EMMET HARTY PRESIDENT OF PARALLAX GROUP INC IN STAMFORD CONN ATTRIBUTED THE BIG VOLUME TO INVESTORS SEEKING TO CAPTURE THE ISSUE'S HEFTY 304 CENTASHARE QUARTERLY DIVIDEND WHICH WAS PAYABLE TO HOLDERS AS OF YESTERDAY BY BUYING THE STOCK AND THEN RESELLING IT FOR DELAYED SETTLEMENT THE DIVIDEND INCOME IS TAXED MORE FAVORABLY FOR SOME INVESTORS SAID MR HARTY HE ADDED THAT THE CITICORP PREFERRED IS PARTICULARLY USEFUL FOR SUCH TRADING BECAUSE OF ITS PRICE STABILITY AND BECAUSE CITICORP'S COMMON STOCK IS TRADING WELL ABOVE THE MAXIMUM CONVERSION PRICE OF 2028 CITICORP COMMON CLOSED YESTERDAY AT 26 NINE WEST WAS UNCHANGED AT 21 1/2 THE SHOE COMPANY OFFERED EIGHT MILLION COMMON SHARES LATE TUESDAY AT 1750 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH EAGLEPICHER EDGED UP 7/8 TO 3 THE COMPANY SAID ITS NET INCOME IN THE FOURTH QUARTER SWELLED TO 66 CENTS A SHARE FROM 22 CENTS A SHARE A YEAR EARLIER FRUIT OF THE LOOM ROCKETED 3 7/8 TO 48 7/8 ON THE AMERICAN STOCK EXCHANGE THE CLOTHING MAKER SAID FOURTHQUARTER PROFIT GREW TO 391 MILLION OR 51 CENTS A SHARE FROM 317 MILLION OR 42 CENTS A SHARE A YEAR EARLIER THE LATEST NET WAS REDUCED 13 CENTS A SHARE FOR PREMIUMS PAID IN CONNECTION WITH THE EARLY RETIREMENT OF DEBT AND THE NONCASH WRITEOFF OF THE RELATED UNAMORTIZED DEBT EXPENSE ELAN FELL 5/8 TO 36 1/8 ON THE AMEX A DEAN WITTER REYNOLDS ANALYST LOWERED HIS INVESTMENT RATING TO NEUTRAL FROM BUY AETNA LIFE & CASUALTY'S MOVE TO TAKE A 180 MILLION FOURTHQUARTER CHARGE TO BOOST RESERVES FOR ASBESTOS AND ENVIRONMENTAL CLAIMS LIFTED PRICES OF MOST INSURANCE STOCKS MANY TRADERS WERE BIDDING THE STOCKS HIGHER ON EXPECTATIONS THAT INSURERS WILL HAVE TO RAISE PRICES TO COVER EXPECTED CLAIMS AETNA FELL 1 TO 51 1/8 ON THE BIG BOARD REFLECTING TUESDAY'S BIG CHARGE BUT MARSH & MCLENNAN SOARED 3 1/2 TO 95 1/4 AND AMERICAN INTERNATIONAL GROUP SURGED 3 3/4 TO 125 7/8 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX JUMPED 271 TO 41489 THERE WERE 319 ADVANCERS AND 248 DECLINERS RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9302040083 930204 MERC INTRODUCES FUTURES ON SMALLCAP COMPANIES CHICAGO GROWING INVESTOR INTEREST IN SMALL STOCKS HAS PROMPTED THE CHICAGO MERCANTILE EXCHANGE TO INTRODUCE FUTURES AND OPTIONS CONTRACTS BASED ON AN INDEX OF SMALLCAPITALIZATION COMPANIES THE MERC'S CONTRACTS WHICH BEGIN TRADING TODAY WILL BE BASED ON THE RUSSELL 2000 INDEX OF 2000 SMALL US STOCKS TRADED ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND ON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS SYSTEM THE CME'S RUSSELL FUTURES AND OPTIONS WILL PROVIDE SMALLCAP INVESTORS WITH A COSTEFFECTIVE MEANS TO MANAGE THE RISKS OF UNDERLYING MARKET VOLATILITY SAID WILLIAM J BRODSKY PRESIDENT AND CHIEF EXECUTIVE OF THE MERC THE CHICAGO BOARD OPTIONS EXCHANGE IS ALREADY TRADING OPTIONS CONTRACTS BASED ON THE RUSSELL 2000 INDEX WHICH DIFFER FROM THE MERC'S OPTIONS IN THAT THEY ARE SETTLED IN CASH WHILE THE MERC OPTIONS WILL BE SETTLED IN FUTURES CONTRACTS THE MERC'S CROSSTOWN RIVAL THE CHICAGO BOARD OF TRADE IS TRADING SMALLCAP STOCKINDEX FUTURES AND OPTIONS BASED ON A DIFFERENT INDEX THE WILSHIRE INDEX OF 250 COMPANIES WITH AVERAGE CAPITALIZATION OF 400 MILLION 9302040082 930204 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 5 HIGH 3 LOW 4 NEAR CLOSING BID 4 1/2 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 310 30 TO 59 DAYS 313 60 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 323 180 TO 239 DAYS 328 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 319 30 DAYS 321 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 272 TWO MONTHS 277 THREE MONTHS 285 SIX MONTHS 304 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 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 305 60 DAYS 307 90 DAYS 310 120 DAYS 315 150 DAYS 318 180 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 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 950 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 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 297 13 WEEKS 310 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 757 60 DAYS 765 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 758 60 DAYS 767 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 288 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9302040081 930204 CLINTON SET TO MEET MAYORS ABOUT STIMULUS PACKAGE WASHINGTON HAVING WARMED UP THE NATION'S GOVERNORS PRESIDENT CLINTON NOW IS PREPARING TO BRING MAYORS IN FROM THE COLD AT THE URGING OF HOUSING SECRETARY HENRY CISNEROS MR CLINTON IS EXPECTED TO MEET TOMORROW WITH 20 OR SO MAYORS FROM THE NATION'S BIGGEST CITIES TO DISCUSS THE ADMINISTRATION'S PLANNED ECONOMIC STIMULUS PACKAGE ACCORDING TO WHITE HOUSE OFFICIALS THE ADMINISTRATION IS LIKELY TO PROPOSE 2 BILLION IN NEW FUNDING FOR COMMUNITY DEVELOPMENT BLOCK GRANTS AND MR CLINTON WILL BE LOOKING FOR HELP IN SELLING HIS PROGRAM TO CONGRESS IN ADDITION HE'LL PROBABLY PRESS THE MAYORS FOR COMMITMENTS TO SPEND THE MONEY AS FAST AS POSSIBLE TO CREATE JOBS THE ADMINISTRATION ALSO MAY ANNOUNCE STEPS TO FREE UP SPENDING OF BILLIONS OF DOLLARS IN PREVIOUSLY APPROPRIATED FUNDS FOR AFFORDABLEHOUSING PROGRAMS AND PUBLICHOUSING PROJECTS THAT HAVE BEEN HELD UP BY ADMINISTRATIVE AND REGULATORY PROBLEMS MR CISNEROS HAS SAID THAT SOME 11 BILLION IS AVAILABLE THE NATION'S GOVERNORS WHO MET WITH THE PRESIDENT FOR MORE THAN THREE HOURS MONDAY LEFT TOWN TUESDAY DELIGHTED AT THE EXTENSIVE CONTACT WITH THE NEW CHIEF EXECUTIVE LIKE THE MAYORS THEY FELT LARGELY SHUT OUT BY THE REAGAN AND BUSH ADMINISTRATIONS 9302040079 930204 BUSINESS BRIEF BENEFICIAL CORP FINANCIAL SERVICE FIRM'S NET FELL 41 IN FOURTH QUARTER BENEFICIAL CORP SAID THAT FOURTHQUARTER NET INCOME FELL 41 ON HIGHER NET CHARGEOFFS OF PROBLEM LOANS AND RECOGNITION OF LOSSES AND RESERVES ON FORECLOSED REAL ESTATE THE WILMINGTON DEL FINANCIAL SERVICES COMPANY'S NET FELL TO 227 MILLION OR 82 CENTS A SHARE FROM RESTATED NET OF 384 MILLION OR 141 A SHARE A YEAR EARLIER PROFIT FROM CONTINUING OPERATIONS SKIDDED 40 TO 233 MILLION OR 84 CENTS A SHARE REFLECTING BENEFICIAL'S RECENT DECISION TO DISCONTINUE OPERATIONS OF ITS MORTGAGE BANKING SUBSIDIARY RESTATED PROFIT FROM CONTINUING OPERATIONS IN THE YEAREARLIER QUARTER WAS 391 MILLION OR 144 A SHARE NET CHARGEOFFS FOR THE LATEST QUARTER ROSE TO 516 MILLION FROM 383 MILLION 9302040078 930204 MARKETING BRIEF FANT BROADCASTING INC UNIT BUYS NEBRASKA NETWORK IN 21 MILLION TRANSACTION FANT BROADCASTING INC SAID IT BOUGHT THE NEBRASKA TELEVISION NETWORK FOR 21 MILLION TAKING THE THREESTATION GROUP OUT OF A THREEYEAR RECEIVERSHIP A FANT UNIT BOUGHT THE ABC AFFILIATES KHGITV KEARNEY NEB CHANNEL 13 KSNBTV SUPERIOR CHANNEL 4 AND KWNBTV HAYES CENTER CHANNEL 6 BASED IN GADSDEN ALA FANT OWNS WNALTV A FOX BROADCASTING AFFILIATE BUT A SPOKESMAN SAID IT HAS NO PLANS FOR SWITCHING THE NEBRASKA STATIONS TO FOX GORDON BROADCASTING INC HAD BOUGHT THE NETWORK FOR 10 MILLION IN 1986 BUT IT WAS PLACED UNDER RECEIVERSHIP WHEN GORDON DEFAULTED ON PAYMENTS TO ITS FINANCIER HELLER FINANCIAL INC FANT SAID 9302040077 930204 FOREIGN EXCHANGE DOLLAR GAINS ON EUROPE'S CURRENCIES AS DANISH KRONE IS MAULED BY SELLERS BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BRIEF CALM IN EUROPE'S EXCHANGE RATE MECHANISM ENDED ABRUPTLY YESTERDAY AS SELLERS SMASHED THE DANISH KRONE SHARPLY LOWER ISOLATED FROM THE MAELSTROM THE DOLLAR GAINED AGAINST EUROPEAN CURRENCIES HOLDING RELATIVELY STEADY ON THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16450 MARKS UP FROM 16405 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12436 YEN OFF FROM 12465 YEN STERLING CONTINUED TO PLUNGE TRADING LATE AT 14355 DOWN FROM 14440 AT MIDDAY THURSDAY IN TOKYO TRADING HAD BEEN LITTLE AFFECTED BY THE BANK OF JAPAN'S 075POINT REDUCTION TO 25 IN THE DISCOUNT RATE THE DOLLAR WAS QUOTED AT 16425 MARKS AND AT 12470 YEN ALTHOUGH THE SELLING DIDN'T SEEM TO SPREAD TO THE REST OF THE ERM DEALERS SAID THE FRENCH FRANC WHICH HAS BEEN BATTERED IN PREVIOUS ERM UPHEAVALS COULD BE THE NEXT TARGET THE DANISH CURRENCY HAS COME UNDER SEVERE PRESSURE SAID GEOFFREY DENNIS INTERNATIONAL ECONOMIST AT JAMES CAPEL & CO IN NEW YORK CENTRAL BANK DEFENSES THAT SPRANG UP AROUND THE KRONE DID LITTLE TO DETER SELLERS DEALERS SAID EARLY IN EUROPEAN TRADING DENMARK'S NATIONAL BANK INCREASED ITS KEY SHORTTERM INTEREST RATE TO 13 FROM 115 IN AN EFFORT TO RAISE THE COST OF BETTING AGAINST THE KRONE LATER THE CENTRAL BANK JOINED BY ITS GERMAN COUNTERPART INTERVENED REPEATEDLY TO DEFEND THE KRONE'S LOWER BOUNDARIES WITHIN THE ERM GRID STEVEN WALKER A TRADER AT UNIBANK AS IN NEW YORK SAID THE KRONE SPENT MOST OF THE EUROPEAN AFTERNOON AT OR BELOW ITS ERM FLOORS AGAINST THE MARK THE DUTCH GUILDER AND THE IRISH PUNT THE SYSTEM'S STRONGEST CURRENCIES LATE IN NEW YORK THE MARK WAS QUOTED AT 39000 KRONER UP SHARPLY FROM 38650 KRONER TUESDAY AND JUST SHY OF THE ERM FLOOR OF 39016 KRONER THIS IS AS BAD AS IT'S EVER BEEN SAID MR WALKER TENSIONS IN THE ERM HAD FADED EARLY IN THE WEEK AFTER IRELAND AGREED TO A 10 DEVALUATION SATURDAY BUT NEWS THAT THE DANISH GOVERNMENT HAD LOWERED ITS ECONOMIC OUTLOOK FOR 1993 REKINDLED CONCERNS THAT DENMARK CAN'T AFFORD THE HIGH INTEREST RATES NECESSARY TO MAINTAIN THE KRONE'S PRESENT LEVELS DEALERS SAID IT'S RIPE FOR PICKING OFF SAID MR DENNIS OF JAMES CAPEL AND IF THE DANES ARE FORCED TO DEVALUE THE FRENCH WILL COME UNDER HUGE NEW PRESSURE HE ADDED YESTERDAY THE FRENCH FRANC SLIPPED ONLY SLIGHTLY EVEN AS THE BANK OF FRANCE LOWERED ITS DEFENSES A BIT LATE IN NEW YORK THE MARK WAS QUOTED AT 33891 FRANCS OFF FROM 33828 FRANCS TUESDAY IN WHAT A FRENCH ECONOMICS MINISTRY SPOKESMAN DESCRIBED AS A STEP TOWARD NORMALIZING THE SITUATION IN THE MONEY MARKETS THE CENTRAL BANK YESTERDAY SAID IT WOULD ALLOW BANKS TO BORROW FOR AS MANY AS FIVE DAYS AT 12 INTEREST ON JAN 5 SEEKING TO STEM A WAVE OF SELLING THE BANK OF FRANCE HAD STOPPED SUCH LENDING OFFERING FUNDS ONLY OVERNIGHT DEALERS SAID THAT WITHOUT THE FIVEDAY FUNDING OPTION BANKS HADN'T ANY WAY TO KNOW WHETHER RATES MIGHT JUMP FROM ONE DAY TO THE NEXT AND SO KEPT UP THEIR OWN LENDING RATES BUT PLAYERS NOTED THE NEW FACILITY CARRIES A RATE TWO POINTS HIGHER THAN THE LAST TIME IT WAS OFFERED KEEPING BORROWING COSTS HIGH THE SPOKESMAN SAID WHEN YOU ARE IN BATTLE AND THINGS CALM DOWN YOU DON'T DISARM COMPLETELY 9302040076 930204 BUSINESS BRIEF LITTON INDUSTRIES INC AGREEMENT REACHED TO BUY 41 STAKE HELD BY TELEDYNE LITTON INDUSTRIES INC SAID IT AGREED TO PURCHASE THE 41 STAKE IN THE COMPANY HELD BY TELEDYNE INC FOR 855 MILLION LITTON BEVERLY HILLS CALIF WILL PAY 51 A SHARE FOR 1676200 SHARES HELD BY TELEDYNE A LOS ANGELES DIVERSIFIED MANUFACTURING CONCERN WHICH HAS LONG HAD CLOSE TIES TO LITTON UNITRIN INC AN INSURANCE HOLDING COMPANY SPUN OFF TO TELEDYNE SHAREHOLDERS IN 1990 CONTINUES TO HOLD NEARLY 127 MILLION LITTON SHARES OR NEARLY 33 OF THE 388 MILLION SHARES OUTSTANDING AFTER THE TELEDYNE BUYBACK THE PURCHASE PRICE IS A PREMIUM OVER THE MARKET PRICE FOR LITTON WHICH CLOSED YESTERDAY AT 4825 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE TRANSACTION WILL BE ANTIDILUTIVE AND THUS ADD VALUE FOR OUR SHAREHOLDERS SAID ORION HOCH CHAIRMAN OF LITTON A PROVIDER OF ADVANCED ELECTRONIC AND DEFENSE SYSTEMS INDUSTRIAL AUTOMATION SYSTEMS AND RESOURCE EXPLORATION SERVICES INCLUDING THE TELEDYNE TRANSACTION LITTON WILL HAVE REPURCHASED ABOUT 198 MILLION SHARES SINCE FISCAL 1986 9302040075 930204 WORLD MARKETS TOKYO STOCKS TAKE DISCOUNTRATE CUT IN STRIDE RATE RUMORS BOOST PRICES IN LONDON FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SHOWED LITTLE IMMEDIATE REACTION TO THE BANK OF JAPAN'S CUT IN ITS DISCOUNT RATE ANNOUNCED BEFORE TRADING BEGAN THURSDAY EXPECTATIONS OF A MONETARY EASING HAD ALREADY BEEN FACTORED INTO SHARE PRICES TRADERS SAID LATE THURSDAY MORNING IN TOKYO THE NIKKEI AVERAGE OF 225 STOCKS STOOD AT 17256 UP ONLY 3452 POINTS FROM WEDNESDAY'S CLOSE THE CENTRAL BANK CUT ITS DISCOUNT RATE BY 075 PERCENTAGE POINT TO A HISTORIC LOW OF 25 BUT A CUT OF THAT SIZE ALREADY HAD BEEN BUILT INTO THE MARKET TRADERS SAID ONLY A CUT OF A FULL PERCENTAGE POINT OR MORE WOULD HAVE TRIGGERED A RALLY THEY ADDED THE MARKET HAD BEEN ABUZZ WITH RUMORS ABOUT A DISCOUNTRATE CUT SINCE LAST WEEK AND THE NIKKEI AVERAGE HAD GAINED ABOUT 6 SINCE THE TALK BEGAN NINETY PERCENT OF THIS NEWS HAS BEEN WORKED INTO THE MARKET SAID OSAMU YASAKA DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NIKKO SECURITIES CO INDEED TRADING ON WEDNESDAY THE DAY BEFORE THE CUT WAS ANNOUNCED REFLECTED THAT OUTLOOK THE NIKKEI AVERAGE CLIMBED DURING MOST OF THE SESSION BUT THE GAINS WERE ERODED WHEN A TELEVISION NETWORK REPORTED THAT THE CENTRAL BANK WOULD ON THURSDAY MAKE FINAL ITS DECISION TO CUT THE DISCOUNT RATE BY 075 POINT THE NIKKEI AVERAGE FINISHED WEDNESDAY WITH A GAIN OF 3572 POINTS AT 1722203 ALMOST 200 POINTS BELOW THE INTRADAY HIGH OF 1741918 AND NEAR THE SESSION LOW OF 1721421 FIRSTSECTION VOLUME WAS ESTIMATED AT 340 MILLION SHARES ON WEDNESDAY UP FROM 2446 MILLION SHARES TUESDAY GAINERS OUTPACED DECLINERS 651 TO 309 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES GAINED 579 POINTS TO 130760 SPECULATION ABOUT INTEREST RATES ALSO DOMINATED TRADING ON OTHER MAJOR MARKETS WEDNESDAY LONDON SHARES SOARED 14 TO RECORD LEVELS ON REKINDLED EXPECTATIONS OF ANOTHER REDUCTION IN BRITAIN'S BASE LENDING RATE FRANKFURT STOCKS RALLIED 12 BECAUSE OF SPECULATION THAT GERMANY WOULD EASE ITS MONETARY POLICY THURSDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SURPASSED ITS RECORD CLOSING HIGH OF 28615 REACHED EARLY THIS YEAR TO FINISH AT A NEW HIGH OF 28738 ON WEDNESDAY A GAIN OF 394 POINTS AND ALSO THE INTRADAY PEAK THE FT 30STOCK INDEX CLIMBED 216 POINTS TO 22257 VOLUME WAS A ROBUST 851 MILLION SHARES BUT OFF SLIGHTLY FROM 8545 MILLION SHARES A DAY EARLIER THE LONDON RALLY ALSO WAS DRIVEN BY A DECLINE IN THE POUND AGAINST OTHER MAJOR CURRENCIES THAT BOOSTED THE STOCKS OF MANY BRITISH COMPANIES THAT DERIVE REVENUE FROM ABROAD AS THEY STAND TO BENEFIT FROM THE TRANSLATION OF FOREIGN FUNDS INTO STERLING WHEN THE BRITISH CURRENCY IS WEAK THE MARKET RECEIVED FURTHER SUPPORT FROM A SHARP RECOVERY IN THE HEAVILY CAPITALIZED PHARMACEUTICAL STOCKS A STRONG PERFORMANCE ON WALL STREET AND BRISK STOCKINDEX FUTURES TRADING IN FRANKFURT ON WEDNESDAY THE DAX 30STOCK INDEX JUMPED 1844 POINTS TO 160153 PIERCING A PERCEIVED RESISTANCE BARRIER OF 1600 OF THE DAX STOCKS 25 ADVANCED AND FIVE DECLINED THE FRANKFURT RALLY INCLUDING SOME IMPULSIVE AND FRANTIC BUYING BUILT UP STEAM TOWARD THE CLOSE AS SPECULATION SPREAD THAT THE BUNDESBANK GERMANY'S CENTRAL BANK WAS PREPARED TO TAKE A STEP TO EASE CREDIT WHEN THE BANK'S GOVERNORS MEET ON THURSDAY FOR THEIR PART ECONOMISTS SAID THEY DIDN'T EXPECT A CHANGE IN OFFICIAL INTEREST RATES BUT SOME WOULDN'T RULE OUT A TECHNICAL EASING SUCH AS A CHANGE IN SECURITIESREPURCHASE RATES OR EVEN A SHIFT IN THE CENTRAL BANK'S MINIMUMRESERVE POLICY THE MARKET'S ENTHUSIASM ABOUT MONETARY POLICY CAME IN THE FACE OF DATA THAT ARE INCREASINGLY DEFINING A RAPIDLY WEAKENING WESTERN GERMAN ECONOMY ELSEWHERE ON WEDNESDAY A LATE FLURRY OF BUYING PUSHED UP SHARES IN PARIS AMID ACTIVE TRADING AS INVESTORS' HOPES WERE RAISED ABOUT A POSSIBLE EASING OF FRENCH MONETARY POLICY TAIPEI SHARES EXTENDED THEIR STRING OF GAINS TO FOUR IN A ROW MAINLY FROM THE EASING OF POLITICAL UNCERTAINTIES SEOUL PRICES ADVANCED FOR THE SECOND CONSECUTIVE DAY ON BUYING BY FOREIGN AND INSTITUTIONAL INVESTORS AMONG CORPORATE DEVELOPMENTS IN PARIS ALCATELALTHSOM ROSE FIVE FRENCH FRANCS TO 627 FRANCS 11292 AFTER RALLYING AS MUCH AS 18 TO 633 IN ANTICIPATION OF ANNOUNCEMENT OF A DEAL THE TELECOMMUNICATIONS TRANSPORTATION AND POWER COMPANY LATER SAID IT WOULD LINK WITH SPRINT A US TELECOMMUNICATIONS CONCERN ON A DATA NETWORK IN AMSTERDAM FOKKER PLUMMETED 320 GUILDERS OR 24 TO 1020 GUILDERS 552 ON RUMORS THAT THE AIRCRAFT MAKER WAS SEEKING A LOAN OF 1 BILLION GUILDERS 5415 MILLION IN CASE A PLANNED PURCHASE OF A 51 STAKE BY DEUTSCHE AEROSPACE FALLS THROUGH DAF PLUNGED 275 OR 60 TO 180 AFTER THE ANGLODUTCH TRUCK MAKER A DAY EARLIER SOUGHT COURT PROTECTION FROM CREDITORS IN STOCKHOLM ELECTROLUX SLID 13 KRONOR OR 58 TO 212 KRONOR 2854 NEWS THAT THE HOUSEHOLDAPPLIANCE COMPANY WILL PROPOSE TO HALVE THE DIVIDEND TO 625 KRONOR CONFIRMED ANALYSTS' WORST EXPECTATIONS AND DRAGGED THE ENTIRE STOCKHOLM MARKET LOWER IN MILAN MONTEDISON CLOSED UNCHANGED AT 1147 LIRE 75 US CENTS BUT JUMPED 6 TO 1220 LIRE IN AFTERHOURS TRADING ON MARKET RUMORS THAT THE COMPANY PLANNED TO SELL A SUBSIDIARY POSSIBLY THE PHARMACEUTICAL GROUP FARMITALIA CARLO ERBA FERRUZZI FINANZIARIA MONTEDISON'S PARENT SAID IT WAS SEEKING AN ALLIANCE FOR FARMITALIA TO SHARE INVESTMENT COSTS 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 9302040074 930204 INTERNATIONAL PHILIPPINES INFLATION RATE MANILA THE PHILIPPINES' ANNUALIZED INFLATION RATE IN JANUARY INCHED UP TO 82 FROM 81 IN DECEMBER BUT WAS DOWN FROM 108 IN THE YEAREARLIER MONTH THE NATIONAL STATISTICS OFFICE SAID THE AGENCY TRACED THE SLIGHT RISE IN THE INFLATION RATE TO THE HOUSING AND REPAIR INDEX WHICH GREW TO 175 IN JANUARY FROM 16 IN DECEMBER BOOSTED BY HIGHER RENTAL RATES IT SAID THE INFLATION RATE IN METROPOLITAN MANILA CLIMBED TO 1155 IN JANUARY AFTER A FIVEMONTH DOWNWARD TREND MEANWHILE THE DOWNWARD TREND IN THE INFLATION RATE IN AREAS OUTSIDE OF METROPOLITAN MANILA CONTINUED 9302040073 930204 WHO'S NEWS EXXON MOBIL PICK NEW TOP OFFICERS MEN WHO FIT THEIR CORPORATE CULTURES BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL TWO LARGE US OIL COMPANIES EXXON CORP AND MOBIL CORP NAMED NEW TOP EXECUTIVES BOTH MEN WHO FIT THE MOLD OF SENIOR OFFICERS AT THEIR RESPECTIVE COMPANIES LEE R RAYMOND PRESIDENT OF EXXON WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT THE COMPANY'S ANNUAL MEETING APRIL 28 MR RAYMOND 54 YEARS OLD HAD BEEN WIDELY EXPECTED TO SUCCEED LAWRENCE RAWL WHO WILL RETIRE FROM THE IRVING TEXAS COMPANY IN MAY WHEN HE REACHES EXXON'S MANDATORY RETIREMENT AGE OF 65 THE TWO APPOINTMENTS CONTINUE A TREND OF NO SURPRISES IN MANAGEMENT SUCCESSIONS AT LARGE US OIL COMPANIES DESPITE A RASH OF SHAKEUPS IN THE TOP RANKS OF OTHER BIG COMPANIES BUT ANALYSTS SAY NEW TOP EXECUTIVES AT OIL COMPANIES MOBIL AND EXXON INCLUDED ALL SEEM TO HAVE HAD A FAIR AMOUNT OF EXPERIENCE MANAGING COSTS ESPECIALLY ON THE REFINING AND MARKETING OR DOWNSTREAM SIDE OF THE ENERGY BUSINESS REFINING AND MARKETING HAS OFTEN BEEN SUBJECT TO THIN MARGINS HEAVY REGULATION AND INTENSE COMPETITION BUT NOW THE HISTORY OF DOWNSTREAM IS THE HISTORY OF THE WHOLE BUSINESS SAID BRYAN JACOBOSKI AN ANALYST WITH PAINEWEBBER MR JACOBOSKI SAID RECENT APPOINTMENTS OF CHIEF EXECUTIVES AT BRITISH PETROLEUM CO CHEVRON CORP UNOCAL CORP AND OCCIDENTAL PETROLEUM CORP ALL HAVE BEEN FROM THE REFINING AND MARKETING OR CHEMICALS END OF THE BUSINESS MR NOTO WHO IS ALSO A MOBIL DIRECTOR JOINED MOBIL IN 1962 AS A MEMBER OF THE REGIONAL PLANNING ANALYSIS GROUP AND WORKED HIS WAY UP INCLUDING STINTS ABROAD WITH MOBIL OIL ITALIANA MOBIL SEKIYU KK IN JAPAN AND MOBIL SAUDI ARABIA INC IN 1986 MR NOTO BECAME RESPONSIBLE FOR PLANNING AND ECONOMICS FOR MOBIL AND TWO YEARS LATER BECAME CHIEF FINANCIAL OFFICER OF THE FAIRFAX VA COMPANY MR NOTO AND ALLEN MURRAY COME FROM THE SAME SCHOOL OF THOUGHT STREET SMART AND SELFRELIANT SAID BERNARD PICCHI AN ANALYST WITH KIDDER PEABODY & CO THE TWO ARE VERY CLOSE IN THEIR APPROACH TO THE BUSINESS ANALYSTS SAID AT EXXON MR RAYMOND HAS SERVED AS PRESIDENT SINCE 1987 AFTER A CAREER WITH THE COMPANY THAT BEGAN IN 1963 HE HAS HELD POSITIONS WITH EXXON'S VENEZUELAN OPERATING AFFILIATE AND EXXON INTERNATIONAL CO HE ALSO SERVED AS PRESIDENT OF EXXON NUCLEAR CO AND IN 1981 WAS NAMED EXECUTIVE VICE PRESIDENT OF EXXON ENTERPRISES RESPONSIBLE FOR INVESTMENTS IN NONCORE BUSINESSES IN 1983 HE WAS MADE PRESIDENT OF EXXON'S OPERATIONS IN LATIN AMERICA HE BECAME A SENIOR VICE PRESIDENT IN 1984 AND PRESIDENT OF THE COMPANY IN 1987 CHARLES R SITTER 62 A SENIOR VICE PRESIDENT RESPONSIBLE FOR EXXON CHEMICAL CO AND FOR EXXON'S TREASURER CONTROLLER AND TAX ACTIVITIES WILL SUCCEED MR RAYMOND AS EXXON'S PRESIDENT 9302040072 930204 UNITED AIRLINES JANUARY TRAFFIC CHICAGO UNITED AIRLINES A UNIT OF UAL INC SAID ITS JANUARY TRAFFIC ROSE 206 TO 746 BILLION REVENUE PASSENGER MILES FROM 619 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE REPRESENTS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF SEATS SOLD ROSE TO 628 FROM 583 A YEAR EARLIER THE CARRIER'S AVAILABLE SEAT MILES ROSE 121 TO 1188 BILLION FROM 1061 BILLION A YEAR EARLIER 9302040071 930204 COAL PRODUCERS SEEK EXTENSION OF UNION ACCORD BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL THE BITUMINOUS COAL OPERATORS ASSOCIATION REPRESENTING MAJOR COAL PRODUCERS ASKED THE UNITED MINE WORKERS FOR A 60DAY CONTRACT EXTENSION IN AN EFFORT TO RESUME LABOR TALKS AND END A TWODAYOLD STRIKE AGAINST THE NATION'S NO 1 COAL PRODUCER UMW OFFICIALS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT THE BCOA IS TRYING TO HEAD OFF A PROLONGED WORK STOPPAGE THAT THREATENS TO SPREAD FROM HANSON PLC'S PEABODY HOLDING CO TO OTHER PRODUCERS ACCORDING TO PEOPLE IN THE INDUSTRY MAJOR COMPANIES WITH SOME NONUNION OPERATIONS ARE MOST VULNERABLE INCLUDING AMAX COAL INDUSTRIES INC A UNIT OF AMAX INC ARCH MINERAL CORP OWNED BY ASHLAND OIL INC AND THE HUNT FAMILY OF TEXAS ASHLAND COAL INC AND CONSOLIDATION COAL CO WHICH IS OWNED BY DU PONT CO AND RHEINBRAUN AG MANAGEMENT AND THE UMW ARE AT LOGGERHEADS OVER THE UNION'S DESIRE TO RADICALLY CHANGE THE STRUCTURE OF THE CONTRACT THE MINE WORKERS UNION TRYING TO SAVE THOUSANDS OF JOBS THAT PAY AN AVERAGE OF 1650 AN HOUR WANTS TO BREAK WITH TRADITION AND NEGOTIATE CONTRACTS WITH PARENT COMPANIES INSTEAD OF THEIR INDIVIDUAL COALPRODUCING SUBSIDIARIES UP UNTIL NOW PARENT COMPANIES WHICH AREN'T INCLUDED IN THE CONTRACT HAVE BEEN ABLE TO ESTABLISH NONUNION MINES UNDER THEM TO MAINTAIN THE STRENGTH THAT IT THE UNION HAS IT NEEDS TO GET ACCESS TO THE NONUNION AFFILIATES SAID RALPH BARBARO A CONSULTANT WITH ENERGY VENTURES ANALYSIS INC ARLINGTON VA IF THE UMW FAILS IT COULD LOSE HALF ITS 60000 JOBS OVER FIVE YEARS AS COMPANIES CLOSE UNION MINES IN FAVOR OF NONUNION ONES MR BARBARO PREDICTED UMW PRESIDENT RICHARD TRUMKA HAS POINTED OUT THAT PEABODY HOLDING HAS A LARGE NEW RESERVE IN INDIANA THAT ISN'T PART OF THE NEGOTIATIONS UNDER THE CURRENT STRUCTURE SINCE IT REPRESENTS PEABODY'S BEST GROWTH POTENTIAL HE SAID HE WANTS IT INCLUDED WHAT I'M LOOKING AT IS THE FUTURE OF MY WORKERS HE SAID IN AN INTERVIEW TUESDAY THE PRESIDENT OF PEABODY HOLDING'S PEABODY COAL UNIT GEORGE S SHIFLETT SAID WORKERS IN ANY MINE HAVE THE RIGHT TO ORGANIZE REGARDLESS OF WHETHER THE MINE IS PART OF THE LABOR AGREEMENT THE MINE WORKERS UNION HAD OFFERED THE BCOA A 60DAY CONTRACT EXTENSION ON SUNDAY BUT ONLY IF THE PARENT COMPANIES ARE INCLUDED IN THE NEW CONTRACT BUT THE BCOA LED BY PEABODY BALKED SAYING IT ONLY HAS THE AUTHORITY TO NEGOTIATE FOR ITS MEMBERS WHICH OFFICIALLY ARE SUBSIDIARIES NOT THE PARENT COMPANIES MR SHIFLETT WHO IS ALSO CHAIRMAN OF THE BCOA SAID CONTRACTS WITH THE PARENT COMPANIES ARE SOMETHING THAT'S WORTH CONSIDERING BUT THE BCOA'S REQUEST FOR A 60DAY PROPOSAL CONTAINS NO CONDITIONS MEANWHILE CONSULTANTS AND ANALYSTS EXPECT STRIKEBOUND PEABODY TO BEGIN SHIPPING MORE COAL FROM ITS NONUNION MINES IN THE WEST IF THE STRIKE CONTINUES FOR A LONG PERIOD HOWEVER THAT OPTION COULD ALSO POSE PROBLEMS FOR THE COMPANY BECAUSE TRANSPORTATION FROM THOSE MINES IS LIMITED TO ONE RAIL LINE WHICH WOULD BE AN EASY TARGET FOR STRIKING MINERS ACCORDING TO PEABODY THE STRIKE AFFECTS 5000 WORKERS BUT THE UNION PUTS THE NUMBER AT 7700 THE MINE WORKERS UNION HAS A 100 MILLION STRIKE FUND BUT NOT ALL OF THAT IS CURRENTLY AVAILABLE AT LEAST 25 MILLION HAS BEEN PUT IN ESCROW BY A VIRGINIA SUPREME COURT WHICH REINSTATED A FINE AGAINST THE UMW FOR VIOLENCE DURING A 1989 STRIKE AGAINST PITTSTON CO'S COAL UNITS 9302040070 930204 SEVEN LOCKHEED EMPLOYEES DIE IN CRASH OF TEST PLANE MARIETTA GA SEVEN LOCKHEED CORP EMPLOYEES WERE KILLED IN THE CRASH OF A ONEOFAKIND LOCKHEED TEST PLANE AT DOBBINS AIR FORCE BASE ABOUT 20 MILES NORTH OF ATLANTA INFORMATION ABOUT THE CREW AND ITS MISSION WASN'T IMMEDIATELY AVAILABLE SAID A SPOKESWOMAN FOR LOCKHEED'S LOCKHEED AERONAUTICAL SYSTEMS CO UNIT WHICH OWNED AND OPERATED THE PLANE THERE WEREN'T ANY SURVIVORS THE AIRCRAFT KNOWN AS LOCKHEED'S HIGH TECHNOLOGY TEST BED WAS A MODIFIED VERSION OF THE MILITARY'S C130 TROOP AND CARGO TRANSPORT PLANE THE SPECIAL PLANE WAS A FLYING LABORATORY DEVELOPED IN 1984 TO TEST NEW ELECTRONIC EQUIPMENT NAVIGATION SYSTEMS AND OTHER ADVANCED TECHNOLOGIES THE CRASH OCCURRED AFTER THE PLANE TOOK OFF FROM THE DOBBINS AIR BASE WHERE LOCKHEED HAS A FACILITY THE PLANE HIT A NAVY MEDICAL CLINIC AT THE BASE BUT CAUSED ONLY MINIMAL DAMAGE AND DIDN'T INJURE ANYONE ON THE GROUND AN AIR FORCE SPOKESWOMAN SAID LOCKHEED IS AN AEROSPACE AND ELECTRONICS CONCERN BASED IN CALABASAS CALIF 9302040069 930204 COMMODITIES CRUDEOIL FUTURES PRICES DRIFT LOWER BUT REMAIN BUOYED BY EXPECTATIONS OF OPEC PRODUCTION CUTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES WERE FLAT TO SLIGHTLY LOWER YESTERDAY BUT REMAINED BUOYED BY THE PROMISE OF PRODUCTION CUTS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY DRIFTED BELOW THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE FOR THE FIRST TIME IN SEVERAL DAYS BUT IT SETTLED AT 1993 A BARREL DOWN ONLY SEVEN CENTS FOR THE DAY AFTER TRADING IN A RANGE OF ONLY 22 CENTS TRADERS MEANWHILE GENERALLY SHRUGGED OFF THE LATEST AMERICAN PETROLEUM INSTITUTE REPORT ON US OIL INVENTORIES RELEASED LATE TUESDAY THERE WAS LITTLE OTHER NEWS YESTERDAY TO AFFECT OIL MARKETS EXCEPT FOR THE FOCUS ON OPEC BECAUSE OF THE ANTICIPATION OF SIGNIFICANT OPEC OUTPUT CUTS ANALYSTS GENERALLY AGREED THAT OIL MARKETS ARE LIKELY TO REMAIN RELATIVELY BULLISH WITH PETROLEUM PRICES HOLDING IN A NARROW RANGE UNTIL THE FEB 13 MEETING OF OPEC THE PERCEPTION OF OPEC CUTS IS WORTH 1 TO 2 A BARREL FOR CURRENT OIL PRICES SAID JOHN HILL A VICE PRESIDENT WITH MERRILL LYNCH'S ENERGY TRADING DESK IN NEW YORK MR HILL EXPECTS THE MARCH CRUDE CONTRACT TO STAY IN A RANGE OF 1950 TO 2050 A BARREL UNTIL THE OPEC MEETING MOST PEOPLE THINK THE MARKET IS IN A ROUGH SUPPLYDEMAND BALANCE NOW HE SAID BUT OPEC HAS GOT TO CUT TO MAINTAIN THAT BALANCE WHEN THE OIL MINISTERS LAST MET IN NOVEMBER THEY SET A FIRSTQUARTER PRODUCTION LEVEL OF 246 MILLION BARRELS A DAY BUT THAT CEILING IS BEING IGNORED WITH CURRENT OUTPUT GENERALLY ESTIMATED AT 249 MILLION TO 25 MILLION BARRELS A DAY AS A RESULT OIL PRICES HAD BEEN FALLING SINCE THAT MEETING UNTIL LAST WEEK'S CALL BY HISHAM NAZER THE INFLUENTIAL OIL MINISTER OF SAUDI ARABIA FOR A CUT IN THE CEILING OF ONE MILLION BARRELS A DAY SINCE THEN HOWEVER PRICES HAVE REBOUNDED BY AS MUCH AS 150 A BARREL DESPITE SOME SKEPTICISM AMONG TRADERS THAT OPEC WILL REDUCE OUTPUT AS MUCH AS MR NAZER SUGGESTED YESTERDAY A SOURCE CLOSE TO SAUDI ARABIA'S OIL POLICY MAKERS SAID THE KINGDOM HAD BEEN PLEASED AT THE REACTION IN THE OIL MARKETS AND AMONG OTHER OPEC MEMBERS TO MR NAZER'S RECOMMENDATION IT'S REALLY VERY POSITIVE HE SAID IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS THE CATTLE MARKET CONTINUED ITS UNLIKELY SURGE WITH THE PRICE OF THE FEBRUARY FUTURES CONTRACT RISING 055 CENT TO 7997 CENTS A POUND CATTLE FUTURES PRICES HAVE BEEN REMARKABLY STRONG THIS WEEK AFTER DECLINING SUBSTANTIALLY LAST WEEK EVEN A BEARISH CATTLEONFEED REPORT RELEASED FRIDAY HASN'T BEEN ABLE TO HOLD DOWN PRICES THIS WEEK DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS SAID LAST WEEK'S PRICE DECLINES WERE RELATED TO LOWER BIDS ON THE CASH MARKET FROM MEAT PACKERS WHO WERE TRYING TO HOLD PRICES DOWN THIS WEEK HOWEVER PACKERS HAVE BEEN FORCED TO RETURN TO THE MARKET IN FORCE TO FILL THEIR NEEDS FOR CATTLE INVENTORY DRIVING PRICES BACK UP PRICES ARE EXPECTED TO HOLD MORE OR LESS STEADY THE REST OF THE WEEK COFFEE COFFEE FUTURES PRICES RETREATED AFTER TWO DAYS OF STRONG GAINS PRICES FOR THE ACTIVELY TRADED MAY CONTRACT CLOSED AT 6790 CENTS A POUND DOWN 125 CENTS ANALYSTS SAID THE DECLINE WAS THE RESULT OF PROFITTAKING IN THE WAKE OF THE BIG GAINS AND LEFT TRADERS UNCERTAIN ABOUT THE NEXT MOVE IN COFFEE PRICES WE'VE NOW GOT A MIXED BAG SAID SCOTT MEYERS AN ANALYST WITH REDEL SILGO GROUP NOBODY KNOWS WHETHER WE ARE GOING UP OR DOWN THE MARKET NEEDS MORE FUNDAMENTAL NEWS TO GIVE IT DIRECTION HE SAID THE MARKET IS STILL WAITING FOR NEWS OF A BREAKTHROUGH AT THE INTERNATIONAL COFFEE ORGANIZATION TALKS IN LONDON THE ICO MEETING AIMED AT PRODUCING AN ACCORD ON EXPORT QUOTAS CONCLUDES FRIDAY ORANGE JUICE ORANGE JUICE FUTURES FOR MARCH DELIVERY CLOSED AT 7035 CENTS UP 135 CENTS PRICES OF ORANGE JUICE FUTURES CONTRACTS HAVE BEEN SHARPLY DEPRESSED ON NEWS OF BOUNTIFUL SUPPLY AND WEAK DEMAND WEDNESDAY'S HIGHER CLOSE REFLECTED A TECHNICAL CORRECTION AFTER A SERIES OF SHARPLY LOWER CLOSES ANALYSTS SAID THEY SAID THE PASSING OF THE WINTER FREEZE SEASON IN FLORIDA WILL CONTINUE TO PUT FURTHER DOWNWARD PRESSURE ON ORANGE JUICE FUTURES 9302040068 930204 BUSINESS BRIEF WACHOVIA CORP STUDENTLOAN SERVICING UNIT IS SOLD TO MINNESOTA FIRM WACHOVIA CORP CITING INCREASINGLY COMPLEX GOVERNMENT REGULATIONS SAID IT SOLD ITS STUDENTLOAN SERVICING UNIT FOR AN UNDISCLOSED SUM TO EDUSERV TECHNOLOGIES INC A CLOSELY HELD ST PAUL MINN FIRM EDUSERV ALREADY ONE OF THE COUNTRY'S LARGEST STUDENT LOANSERVICING COMPANIES SAID IT WOULD DOUBLE ITS LOANSERVICING PORTFOLIO TO ABOUT 8 BILLION UNDER THE DEAL WHICH IS SUBJECT TO APPROVAL BY THE FEDERAL TRADE COMMISSION AFTER THE MERGER THE COMBINED LOANSERVICING COMPANIES WOULD HAVE ANNUAL REVENUE OF ABOUT 80 MILLION WACHOVIA SAID THE WACHOVIA UNIT OPERATES AS WACHOVIA STUDENT FINANCIAL SERVICES EDUSERV IS CONTROLLED BY A VENTURE CAPITAL FUND AFFILIATED WITH BOSTONBASED BAIN CAPITAL WACHOVIA BASED IN WINSTONSALEM NC SAID IT WILL CONTINUE TO WRITE STUDENT LOANS 9302040067 930204 LEISURE & ARTS TOP 10 PRIMETIME PROGRAMS COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1993 9302040066 930204 ECONOMY CLINTON SEEKS WAYS TO SHOW SUPPORT FOR TRADE PACTS WASHINGTON THE CLINTON ADMINISTRATION IS LOOKING FOR WAYS TO SHOW SUPPORT FOR MULTILATERAL TRADE PACTS AMID FEAR ABROAD THAT IT WOULD TURN TOWARD PROTECTIONISM PRESIDENT CLINTON IS CONCERNED THAT DISPUTES OVER STEEL TELECOMMUNICATIONS AND AUTOS HAVE GIVEN HIS ADMINISTRATION A PROTECTIONIST CAST SAID OFFICIALS CLOSE TO IT AND HE HAS ASKED ADVISERS FOR WAYS TO SHOW SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT AND WORLD TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE HE HAS ASKED US TRADE REPRESENTATIVE MICKEY KANTOR TO BRIEF HIM BY TODAY AND THE NATIONAL ECONOMIC COUNCIL HAS SET UP INTERAGENCY WORKING GROUPS TO REVIEW OPTIONS CONCERNING THE PACT LIBERALIZING TRADE WITH MEXICO AND CANADA AND THE GATT TALKS IT ISN'T CLEAR WHAT MR CLINTON WILL DO WHILE ENDORSING THE FREETRADE PACT HE SAID HE WANTED TO NEGOTIATE SIDE DEALS ON THE ENVIRONMENT LABOR AND ENFORCEMENT HE HAS HARDER CHOICES REGARDING GATT TALKS WHICH HE HAS ALSO ENDORSED ON MARCH 2 FASTTRACK CONGRESSIONAL NEGOTIATING AUTHORITY EXPIRES UNDER IT CONGRESS CAN VOTE YES OR NO ON TRADE PACTS BUT CAN'T REWRITE THEM BY AMENDMENT MR CLINTON MAY ENDORSE AN EXTENSION OFFICIALS SAID BUT LEAVE THE TIMING UNCLEAR AN EXTENSION SAY CONGRESSIONAL AIDES WOULD BE OPPOSED BY LABOR AND ENVIRONMENTALISTS 9302040065 930204 OUR PENSIONS RETIREMENT WOES PENSION SAVING IS SHORT OF THE MARK BY JIM SMALHOUT AFTER THIS WEEK'S CONGRESSIONAL BROUHAHA ABOUT THE WORSENING WOES OF THE GOVERNMENT'S PENSION INSURANCE PROGRAM IT IS APPROPRIATE TO ASK WHAT DOES IT TAKE TO FUND A DECENT RETIREMENT UNFORTUNATELY THE ANSWER IS A GREAT DEAL MORE THAN MOST AMERICANS HAVE BEEN SAVING FOR A RAINY DAY THIS IS NO ACCIDENT OUR GOVERNMENT TAXES SAVING IN WASTEFUL AND INEFFICIENT WAYS THE RESULT A GATHERING CRISIS IN THE PRIVATE PENSION SYSTEM WHOSE FULL DIMENSIONS WON'T BECOME APPARENT UNTIL THE BABYBOOM GENERATION RETIRES MUCH WAS MADE IN THIS WEEK'S HEARINGS OF THE THREAT TO TRADITIONAL DEFINEDBENEFIT PENSION PLANS WHICH PROMISE MONTHLY PAYMENTS BASED ON EARNINGS AND LENGTH OF SERVICE WHEN FINANCIALLY SHAKY COMPANIES FUND THEM POORLY AND THAT IS A SERIOUS PROBLEM FOR TAXPAYERS BUT FOR MOST WORKERS OLDSTYLE DEFINEDBENEFIT PLANS ARE RAPIDLY BECOMING AN ANACHRONISM AS MORE AND MORE EMPLOYERS REPLACE THEM WITH SOCALLED DEFINEDCONTRIBUTION PLANS AND 401K SALARY REDUCTION PLANS TAXDEFERRED SAVINGS ACCOUNTS PROMISING ONLY THE INITIAL CONTRIBUTIONS PLUS SUBSEQUENT INVESTMENT RETURNS LEGALLY SPEAKING THESE PLANS ARE IMPOSSIBLE TO UNDERFUND BECAUSE THERE IS NO GAP BETWEEN THE LUMP SUM THAT WORKERS RECEIVE AT RETIREMENT AND THE BENEFITS THAT THEY WERE PROMISED HOWEVER THE PLAIN FACT IS THAT TO PREPARE FOR A FINANCIALLY SECURE RETIREMENT A TYPICAL WORKER NEEDS TO CONTRIBUTE 15 OF HIS SALARY OVER A CAREER OF 35 YEARS AN AMOUNT SEVERAL TIMES HIGHER THAN COMPANIES USUALLY SET ASIDE TODAY WORKERS NEED TO UNDERSTAND THIS REALITY BECAUSE THE TREND TOWARD DEFINEDCONTRIBUTION PLANS WILL GROW STRONGER WHEN BABY BOOMERS BEGIN TO RETIRE COMPANIES EXPECT TO HAVE TROUBLE REPLACING MANY SKILLED EMPLOYEES AND THEREFORE WILL OFFER BENEFITS CAPABLE OF ATTRACTING TRAINED YOUNGER WORKERS WHILE KEEPING OLDER WORKERS ON THE JOB LONGER DEFINEDCONTRIBUTION PLANS WHICH DON'T PENALIZE JOBHOPPING OR WORKING PAST THE NORMAL RETIREMENT AGE ARE WELLEQUIPPED TO DELIVER THESE INCENTIVES THE OMNIBUS BUDGET RECONCILIATION ACT OF 1987 ADDED SOME MORE PERVERSE INCENTIVES IT SLASHED MAXIMUM CONTRIBUTIONS TO THE OLD DEFINEDBENEFIT PLANS IN WAYS THAT WILL DRIVE UP FUTURE MINIMUMS THUS COMPANIES WITH A HIGH PROPORTION OF BABY BOOMERS WILL FACE RISING BURDENS MAKING THE SWITCH TO A DEFINEDCONTRIBUTION PLAN INEVITABLE IN MANY CASES BUT HOW TO COPE WITH THE UNCERTAINTY THAT COMES WITH A LUMP SUM AT RETIREMENT FOR MOST THE ANSWER CLEARLY IS TO SAVE MORE AND WHEN RETIREMENT COMES TO BUY AN ANNUITY FROM AN INSURANCE COMPANY BUT EVEN WITHOUT THE DECLINE OF THE DEFINEDBENEFIT PLAN SAVING MORE WOULD HAVE BEEN ESSENTIAL THE BENEFITS RECEIVED BY MOST RETIREES PROVIDE ONE CLUE THAT PENSION SAVING HAS FALLEN TERRIBLY SHORT OF THE MARK AS EARLY AS 1988 MEDIAN PENSION INCOME FOR PRIVATE SECTOR RETIREES WAS ONLY 3590 ANOTHER INDICATOR IS THE PROPORTION OF WORKERS ENTITLED TO BENEFITS IN THE SAME YEAR JUST 29 OF ALL PRIVATE SECTOR EMPLOYEES HAD EARNED THE RIGHT TO A PENSION OF ANY SORT AND SINCE THEN PENSION COVERAGE OF ALL TYPES HAS BEEN FALLING AGAINST THIS BACKDROP THE DEFINEDCONTRIBUTION APPROACH IS NOT NECESSARILY SOMETHING TO BE FEARED IN 1918 THE CARNEGIE FOUNDATION SET UP SUCH A DEFINEDCONTRIBUTION SYSTEM FOR THE COUNTRY'S UNIVERSITY PROFESSORS TODAY THAT PLAN KNOWN AS TIAACREF MANAGES MORE THAN 100 BILLION IN ASSETS AND SERVES 15 MILLION EMPLOYEES AT 4800 INSTITUTIONS OFFICIALS AT TIAACREF TELL US THAT BY CONTRIBUTING 10 OF SALARY A COMMON PRACTICE OVER 35 YEARS A PERSON CAN BUILD UP A NEST EGG LARGE ENOUGH TO PURCHASE A FIXED ANNUITY THAT WITH SOCIAL SECURITY REPLACES ABOUT 60 OF FINAL PAY AT RETIREMENT UNFORTUNATELY EVEN THAT WILL LEAVE MOST RETIRED COUPLES HIGH AND DRY BECAUSE INFLATION EVEN AT LOW RATES CAN DEVASTATE FUTURE PURCHASING POWER AT LEAST ONE MEMBER OF A RETIRING COUPLE BOTH AGE 65 STANDS A 55 CHANCE OF LIVING BEYOND AGE 90 AND BABY BOOMERS ARE EXPECTED TO LIVE LONGER STILL SO THERE WILL BE MANY MORE FRAIL MEN AND WOMEN AMONG THE ELDERLY NEEDING STEADY REAL INCOME TO COVER MEDICAL COSTS AND INSTITUTIONAL CARE TIAACREF THEREFORE OFFERS A GRADED BENEFIT THAT PLOWS BACK ENOUGH MONEY EARLY IN RETIREMENT TO ENSURE AN INCOME THAT RISES ROUGHLY WITH INFLATION IT GETS HIGH MARKS FROM PROFESSORS WHO CAN AFFORD IT YET FEW CAN A RETIREE CHOOSING THE GRADED BENEFIT PROBABLY SETTLES FOR ONLY HALF OF PREVIOUS PAY TODAY A MORE REASONABLE FUNDING TARGET FOR DEFINEDCONTRIBUTION PLANS THEREFORE IS THAT 15 OF SALARY OVER 35 YEARS NOT THE 10 NOW COMMON AMONG UNIVERSITIES OR THE 5 AT MANY PRIVATE COMPANIES SIMILAR SHORTSIGHTEDNESS HAS PUSHED TOTAL PAYMENTS FROM DEFINEDBENEFIT PLANS AHEAD OF CONTRIBUTIONS BY 100 BILLION EACH YEAR SINCE 1989 DESPITE THE NEED TO PREPARE FOR THE UNPRECEDENTED BURDEN OF SUPPORTING BABY BOOMERS IN RETIREMENT MORE GENERALLY ANEMIC RETIREMENT SAVING HAS BECOME A SERIOUS DRAG ON AMERICA'S ECONOMIC PERFORMANCE FOR ITS PART THE US TREASURY ESTIMATES THAT INCOMETAX RECEIPTS WOULD HAVE BEEN 51 BILLION HIGHER LAST YEAR WITHOUT SPECIAL PROVISIONS FOR EMPLOYERSPONSORED PENSION PLANS THE COUNTRY THEREFORE NEEDS TO GET MORE RETIREMENT SAVING FOR THE TAX INCENTIVE BUCK OTHERWISE MANY MORE OF THE ELDERLY WILL BE CONDEMNED TO THE CHARITY WARDS WITH THE HUGE BABYBOOM GENERATION MOVING INTO ITS PEAK EARNING YEARS CONTRIBUTIONS TO PRIVATE PENSION PLANS SHOULD GREATLY EXCEED BENEFIT PAYMENTSNOT THE OTHER WAY AROUND MR SMALHOUT IS A GUEST SCHOLAR AT THE BROOKINGS INSTITUTION 9302040064 930204 GM'S EARLY RETIREMENT DETROIT NEARLY 4600 HOURLY WORKERS FROM GENERAL MOTORS CORP TOOK EARLY RETIREMENT MONDAY AND THOUSANDS MORE ARE EXPECTED TO RETIRE AT THE END OF THIS MONTH THE COMPANY SAID GM WHICH USES ABOUT 50 MORE LABOR TO ASSEMBLE CARS THAN FORD MOTOR CO CURRENTLY HAS 288000 HOURLY WORKERS AND PLANS TO TRIM THAT NUMBER TO 250000 BY THE MID1990S IN DECEMBER GM AND THE UNITED AUTO WORKERS UNION ANNOUNCED A 450 MILLION EARLY RETIREMENT PACKAGE THAT WOULD GIVE CERTAIN WORKERS AS MUCH AS 13000 TOWARD THE PURCHASE OF A NEW GM CAR A UNION SURVEY LAST YEAR INDICATED THAT 7000 WORKERS WERE INTERESTED IN EARLY RETIREMENT BUT IT NOW APPEARS LIKELY THE ACTUAL NUMBER WILL EASILY EXCEED THAT WE'RE EXTREMELY HAPPY WITH THE RESPONSE TO THE PROGRAM SAID A GM SPOKESMAN THE TOTAL NUMBER OF RETIREES WON'T BE KNOWN UNTIL MARCH 1 WHEN THE PROGRAM EXPIRES THE EARLY RETIREMENTS WILL ALLOW GM TO REDUCE THE 20500 WORKERS ON LONGTERM LAYOFF WHO ARE RECEIVING FULL PAY BECAUSE OF THE CAR MAKER'S CONTRACT WITH THE UAW