TOKYO JAPAN'S STOCK MARKET MAY LOOK SCARY TO US SMALL INVESTORS BECAUSE IT HAS FALLEN 56 IN THREE YEARS BUT AMERICAN PENSION FUNDS HAVE BEEN LOADING UP ON JAPANESE STOCKS IT'S NOT THAT JAPAN LOOKS SO CHEAP TO THE PENSION FUNDS RATHER THEY ARE FOLLOWING STRICT INVESTMENT DISCIPLINES WHERE COMPUTERS ARE TELLING THEM TO BUY JAPAN ACCOUNTS FOR ROUGHLY 24 OF TOTAL WORLD STOCKMARKET VALUE IT ALSO ACCOUNTS FOR 43 OF A WIDELY WATCHED PERFORMANCE YARDSTICK FOR MONEY MANAGERS MORGAN STANLEY CAPITAL INTERNATIONAL'S EUROPE AUSTRALIA FAR EAST INDEX MONEY MANAGERS OFTEN ARE JUDGED AGAINST SUCH INDEXES SO THEY CAN'T IGNORE JAPAN ESPECIALLY IF THEY THINK THE MARKET'S DUE FOR A GAIN SHRUGGING OFF LAST YEAR'S 26 DROP IN THE NIKKEI STOCK AVERAGE NORTH AMERICAN INVESTORS PURCHASED A NET 696 BILLION YEN 489 BILLION OF JAPANESE STOCKS IN 1992 THAT'S ON TOP OF EVEN HEAVIER PURCHASES IN THE PRIOR YEAR I'D SAY 60 TO 70 OF THAT MONEY WAS US PENSION FUNDS SAYS KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES JAPAN AND MORE MONEY MAY BE ON THE WAY SHE SAYS PARTLY BECAUSE THE US HAS A TOTAL OF 26 TRILLION IN PENSION FUNDS AND ONLY 7 OF THAT IS OVERSEAS AT THE MOMENT WHEN THEY INVEST ABROAD FUND MANAGERS OFTEN USE STRICT FORMULAS BASED ON A COUNTRY'S MARKET SIZE BIGGER MARKETS SUCH AS JAPAN GET A LARGER PORTION OF THE TOTAL INVESTMENT OFTEN A MANAGER WILL BUY STOCKS IN A NATION'S MAJOR INDEX IN ORDER TO BE SURE OF GETTING THE MARKET'S AVERAGE GAIN THIS STRATEGY TENDS TO FAVOR BLUE CHIPS A LOT OF MONEY WILL BE GOING TO JAPAN PREDICTS JOHN KOENEMAN MANAGING DIRECTOR OF KOENEMAN CAPITAL MANAGEMENT PTE LTD A SINGAPOREBASED FIRM WITH US PENSION FUND CLIENTS JAPAN IS BY FAR THE MOST IMPORTANT MARKET IN SIZE OUTSIDE THE US MOREOVER IT HAS VERY GOOD COMPANIES THAT REALLY DOMINATE THEIR INDUSTRIES THE SONYS AND MATSUSHITAS OF THIS WORLD MR KOENEMAN ALSO THINKS THE MARKET IS RELATIVELY INEXPENSIVE BY SOME MEASURES JAPAN IS MUCH CHEAPER THAN THE US HE SAYS HOWEVER BY ONE MAJOR YARDSTICK JAPAN IS MORE EXPENSIVE THAN THE US THE NIKKEI INDEX OF 225 LEADING STOCKS TRADES AT 439 TIMES ESTIMATED EARNINGS FOR THE JAPANESE FISCAL YEAR ENDING MARCH 31 1994 ACCORDING TO I/B/E/S INC BASED UPON EARNINGS FOR THE CURRENT YEAR ENDING NEXT MONTH THE MULTIPLE IS 481 TIMES BY CONTRAST THE S&P 500 TRADED AT A P/E OF 243 AT THE END OF LAST WEEK ALTHOUGH JAPANESE STOCK PRICES ARE DROPPING EARNINGS HAVE BEEN DROPPING JUST AS STEEPLY SAYS RICHARD PUCCI HEAD OF RESEARCH AT I/B/E/S JAPANESE CORPORATE EARNINGS PLUNGED 23 LAST FISCAL YEAR AND PROBABLY WILL TUMBLE MORE THAN 24 IN THE YEAR THAT IS ABOUT TO END HE SAYS AT ITS PEAK IN LATE 1989 THE JAPANESE MARKET WAS SELLING AT A P/E OF 57 SOME STRATEGISTS SAY A US PENSION FUND SHOULD ALLOCATE AT LEAST 10 OF ITS ASSETS TO OVERSEAS MARKETS THAT'S HOW MUCH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM OR CALPERS HAS OFFSHORE ACCORDING TO CHIEF INVESTMENT OFFICER DEWITT BOWMAN ABOUT 25 OF ITS INTERNATIONAL EQUITY INVESTMENTS OR 175 BILLION IS IN JAPAN THAT MAKES US ONE OF THE LARGEST FOREIGN INVESTORS IN JAPAN HE SAYS THE DISCIPLINE FORCES YOU TO PUT MONEY IN MARKETS AT TIMES WHEN THEY'RE CHEAP MR BOWMAN ADDS THAT SOUNDS FINE IN THEORY BUT CAN BE PAINFUL IN PRACTICE WE STARTED TWO YEARS AGO AND THE NIKKEI HAS SINCE FALLEN 24 STILL HE INSISTS THIS IS A LONGTERM STRATEGY CALPERS FAVORS JAPANESE MANUFACTURING STOCKS SUCH AS HITACHI ELECTRONICS LTD AND TOYOTA MOTOR CORP WHICH HAVE OUTPERFORMED THE OVERALL MARKET IT HAS SHIED AWAY FROM JAPAN'S SHAKY BANKS AND REAL ESTATE COMPANIES NOT EVERYONE THINKS JAPAN IS A BUY I DON'T SEE A REASON TO BE IN JAPAN FOR THE NEXT SIX MONTHS SAYS DAVID GONG A FUND MANAGER AT ARDSLEY PARTNERS IN THE US PEOPLE ARE FASCINATED BY INVESTMENT MODELS WHICH EXCLUDE FEAR AND GREED BUT INVESTORS WHO RELIED ON SUCH MODELS IN RECENT YEARS HAVE HAD THEIR FEET CHOPPED OFF HANG ON BELIEVERS SAY JEFF BAHRENBURG JAPAN EQUITY STRATEGIST AT MERRILL LYNCH JAPAN INC SAYS LONGTERM INVESTORS PEOPLE WHO CAN WAIT FIVE YEARS WILL DO WELL WITH MONEY THAT GOES TO JAPAN JAPANESE CORPORATE EARNINGS WILL BE LOWER FOR THE THIRD YEAR IN A ROW THIS YEAR HE ARGUES SO WITH PROFITS SO FAR DOWN JAPANESE COMPANIES SHOULD SEE BRISK REBOUNDS WHEN THEIR RECESSION ENDS MINIMUM THERE WILL BE A 30 EARNINGS GAIN IN THE FIRST YEAR HE SAYS AND STOCKS SHOULD BENEFIT MR BAHRENBURG SUSPECTS CORPORATE PROFITS WON'T PICK UP UNTIL 1994 BUT TO FUND MANAGERS WITH LONGTERM GOALS HE SAYS I'D BE BUYING MICHAEL R SESIT IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9302040062 930204 BUSINESS BRIEF SCICLONE PHARMACEUTICALS BUYOUT OF SINGAPORE PARTNER LED TO FOURTHQUARTER LOSS SCICLONE PHARMACEUTICALS SAID CHARGES FOR BUYING OUT ITS PARTNER IN ITS SINGAPORE SUBSIDIARY CONTRIBUTED TO A LOSS FOR THE FOURTH QUARTER THE 23 MILLION CHARGE FOR THE BUYOUT OF THE UNIT SCICLONE PHARMACEUTICALS SINGAPORE PTY LTD PUSHED THE PARENT COMPANY'S LOSS TO 42 MILLION OR 37 CENTS A SHARE FROM 2 MILLION OR 27 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE PERIOD ENDING DEC 31 DECREASED SLIGHTLY TO 225000 FROM 256000 THIS SAN MATEO CALIF PHARMACEUTICAL COMPANY WHICH HAS NOT YET PUT ANY PRODUCTS ON THE MARKET PREDICTS POSITIVE CASH FLOW SOMETIME IN 1994 IT SAID ITS LOSS FOR THE YEAR INCREASED TO 77 MILLION OR 73 CENTS A SHARE COMPARED WITH 3 MILLION OR 41 CENTS A SHARE REVENUE INCREASED TO 689000 FROM 256000 9302040061 930204 BREAST IMPLANTS RAISE MORE SAFETY ISSUES HEALTH RESEARCH LINKS SILICONE VERSION TO NEW DISEASES BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL IN THE YEAR SINCE A NATIONAL DEBATE ERUPTED ABOUT THE SAFETY OF BREAST IMPLANTS A GROWING NUMBER OF MEDICAL RESEARCHERS ARE LINKING SILICONEGEL IMPLANTS TO A NUMBER OF NEVERBEFORESEEN DISEASES OF THE HUMAN IMMUNE SYSTEM THEIR CONCLUSIONS WILL ALMOST CERTAINLY AFFECT THE COURSE OF LITIGATION OVER LIABILITY INVOLVING SILICONE IMPLANTS MANUFACTURERS FACE AN ESTIMATED 2000 COMPLAINTS IN A CONSOLIDATED FEDERAL COURT PROCEEDING IN ALABAMA AND NEARLY 1000 STATE LAWSUITS JUST IN CALIFORNIA IN A TEXAS STATE COURT LATE LAST MONTH IMPLANT MAKER BRISTOLMYERS SQUIBB CO LOST A 25 MILLION VERDICT IT PLANS AN APPEAL RESEARCHERS SAY THE ILLNESSES SOME VERY SERIOUS THAT THEY HAVE DETECTED MIMIC TRADITIONAL DISEASES KNOWN GENERALLY AS AUTOIMMUNE ILLNESSES IN WHICH THE BODY'S IMMUNE SYSTEM ATTACKS ITS OWN TISSUE BUT THE AILMENTS DIFFER BOTH IN THEIR SYMPTOMS AND IN LABORATORY RESULTS THE DISEASE IS A DISEASE UNTO ITSELF SAYS GARY SOLOMON ASSOCIATE DIRECTOR OF THE RHEUMATIC DISEASES DEPARTMENT AT NEW YORK'S HOSPITAL FOR JOINT DISEASES ORTHOPAEDIC INSTITUTE I HAD BEEN SKEPTICAL ABOUT A DISEASESILICONE LINK HE SAYS BUT AFTER SEEING FIVE OR SIX PATIENTS I WAS CONVINCED DR SOLOMON SAYS HIS PATIENTS WITH SILICONE IMPLANTS SUFFERED CHRONIC FATIGUE INABILITY TO SWALLOW HAIR LOSS AND RASHES ON THEIR UPPER CHESTS THESE WOMEN HE SAYS HAVE FEATURED A CONSTELLATION OF LAB FINDINGS NOT CONSISTENT WITH ANY PREVIOUS DISEASES MANY TESTED POSITIVE FOR ANTINUCLEAR ANTIBODIES ENTITIES THAT ATTACK THE BODY'S OWN TISSUE IF BORNE OUT THROUGH CONTINUED RESEARCH FINDINGS LIKE DR SOLOMON'S WOULD HAVE IMMENSE SIGNIFICANCE MEDICALLY AND LEGALLY SOME OF THE FINDINGS HAVE BEEN PUBLISHED OTHERS NOT IT HAS BEEN NINE MONTHS SINCE THE FOOD AND DRUG ADMINISTRATION SHARPLY CURTAILED THE IMPLANTS ALLOWING THEM ONLY IN LIMITED CLINICAL TRIAL SETTINGS MOSTLY FOR RECONSTRUCTION AND BREASTCANCER PATIENTS AN ESTIMATED ONE MILLION WOMEN IN THE US AND MORE OVERSEAS HAVE GOTTEN SILICONE BREAST IMPLANTS OVER THREE DECADES EITHER FOR COSMETIC REASONS OR FOLLOWING SURGERY FOR BREAST CANCER THE FDA LAST APRIL SAID IT HAD CONCERNS ABOUT THE DEVICES' SAFETY BUT FOUND THAT NO CONCLUSIVE CAUSAL LINK HAD BEEN SHOWN BETWEEN THE IMPLANTS AND AUTOIMMUNE DISEASES LIKE SCLERODERMA RHEUMATOID ARTHRITIS AND SYSTEMIC LUPUS HOWEVER LIKE DR SOLOMON ALAN J BRIDGES OF THE UNIVERSITY OF WISCONSIN ASSERTS THAT EVEN PEOPLE WHO WERE SKEPTICAL ARE SAYING THERE'S JUST TOO MUCH SCLERODERMA IN WOMEN WITH IMPLANTS SCLERODERMA IS A POTENTIALLY FATAL IMMUNESYSTEM ILLNESS FEATURING LEATHERY HARDENING OF THE SKIN IT CAN ATTACK INTERNAL ORGANS AS WELL I BELIEVE THERE IS A SUBGROUP OF WOMEN WHO WILL DEVELOP A DISEASE IF THEY HAVE THESE THINGS IN LONG ENOUGH SAYS DR BRIDGES A RHEUMATOLOGIST AND ASSOCIATE PROFESSOR OF MEDICINE HE HAS SEEN 150 PATIENTS WITH SILICONE IMPLANTS AND NOTES SOME CLINICAL AND IMMUNOLOGIC DIFFERENCES FROM TYPICAL CONNECTIVETISSUE DISEASES SUCH AFFLICTIONS ARE A SUBSET OF AUTOIMMUNE DISEASES THAT STRIKE JOINTS AND TISSUES NEAR JOINTS AMONG OTHER AREAS OF THE BODY MANUFACTURERS CONTINUE TO INSIST THERE ISN'T ANY PROOF THAT SILICONE CAUSES DISEASES AND SOME PHYSICIANS CONCUR NOTING THAT THERE HAVEN'T BEEN LARGE CLINICAL TRIALS COMPARING IMPLANT RECIPIENTS TO WOMEN WITHOUT IMPLANTS NOEL R ROSE CHAIRMAN OF IMMUNOLOGY AT JOHNS HOPKINS UNIVERSITY SAYS HE AWAITS SUCH TRIAL RESULTS BEFORE HE WILL BE CONVINCED ANY SUCH TRIALS WOULD TAKE SEVERAL YEARS A STUDY SPONSORED BY DOW CORNING CORP THE FIRST MANUFACTURER OF SILICONE IMPLANTS AND THE MAKER OF MUCH OF THE SILICONE GEL IN OTHER COMPANIES' DEVICES IS NOW UNDER WAY AT THE UNIVERSITY OF MICHIGAN TO EXAMINE WHETHER SILICONE MAY CAUSE SCLERODERMA ASIDE FROM SUCH QUESTIONS IT HAS BEEN CLEARLY DOCUMENTED THAT WOMEN CAN BECOME SEVERELY DISFIGURED WHEN THEIR BREAST TISSUE HARDENS AROUND THE IMPLANTS OR WHEN IMPLANTS BURST ON THE LEGAL FRONT SALVATORE LICCARDO A PLAINTIFF LAWYER ESTIMATES THAT 2000 CASES HAVE BEEN FILED OR SOON WILL BE IN THE CONSOLIDATED FEDERAL COURT PROCEEDING IN BIRMINGHAM ALA LAWYERS SAY MORE THAN 80 OF THE CASES FILED NAME DOW CORNING MIDLAND MICH A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC AS A DEFENDANT OTHER COMPANIES NAMED IN MANY OF THE LAWSUITS LAWYERS SAY INCLUDE MINNESOTA MINING & MANUFACTURING CO AND BAXTER INTERNATIONAL INC IN OTHER SUITS DEFENDANTS INCLUDE IMPLANT MAKERS MENTOR CORP AND MCGHAN MEDICAL CORP A UNIT OF INAMED CORP A NUMBER OF RESEARCHERS HAVE FOUND ANECDOTAL EVIDENCE IN THEIR PATIENTS' SYMPTOMS AND LAB TESTS THAT LINKS SILICONE AND AUTOIMMUNE ILLNESS BUT SUCH ANECDOTAL FINDINGS ARE GIVEN LESS WEIGHT BY RESEARCHERS ALTHOUGH MANY MEDICAL PROFESSIONALS HAVE FOUND THE SPECIFICS ESPECIALLY LAB RESULTS PARTICULARLY COMPELLING IN THESE CASES REASONABLE PEOPLE ARE NOT ASKING WHETHER SILICONE CAUSES DISEASE BUT HOW OFTEN SAYS ERIC GERSHWIN CHIEF OF RHEUMATOLOGY AND ALLERGY AT THE UNIVERSITY OF CALIFORNIA AT DAVIS DR GERSHWIN HAS EXAMINED CHILDREN WHO NURSED FROM MOTHERS WITH SILICONE BREAST IMPLANTS AND CONCLUDED THAT THEY TOO MAY GET SICK FROM THE DEVICES SILICONE MAY CROSS INTO THE BREAST MILK AND NOT TURN UP FOR A NUMBER OF YEARS HE SAYS WE'VE SEEN A NUMBER OF CHILDREN WHO'VE HAD DISEASE THAT WE FEEL IS POSSIBLY RELATED TO NURSING WITH SILICONE IMPLANTS HE REPORTS EXAMINING BABIES AND CHILDREN WITH WHAT HE DESCRIBES AS ATYPICAL AUTOIMMUNE DISEASES AT BAYLOR MEDICAL COLLEGE IN HOUSTON OTHER DOCTORS TELL OF A WOMAN WHOSE SILICONE IMPLANTS RUPTURED WHILE SHE WAS UNDER TREATMENT AT ANOTHER HOUSTON HOSPITAL THE BAYLOR DOCTORS WHO TREATED HER SAY THE WOMAN DEVELOPED BADLY DISFIGURING SCLERODERMA PRECISELY WHERE THE ESCAPING SILICONE HAD FLOWED AN FDA RESEARCHER LORI A LOVE STUDIED 13 WOMEN WITH SILICONE WHO DEVELOPED AN EXTREMELY RARE AND SOMETIMES FATAL ILLNESS CALLED MYOCITIS THE WOMEN'S SYMPTOMS AND ANTIBODY PATTERNS DIFFERED FROM TRADITIONAL MYOCITIS DR LOVE FOUND FOR INSTANCE THEY HAD A HIGH INCIDENCE OF UNEXPLAINED FALLING A SHAWLPATTERNED RASH ON THEIR BACKS AND DISTINCTIVE NECK RASHES OTHER DOCTORS AT BAYLOR DESCRIBED WOMEN WITH IMPLANTS WHO BECAME SICK THEN HAD THE DEVICES SURGICALLY REMOVED BERNARD M PATTEN AN ASSOCIATE PROFESSOR OF NEUROLOGY AT BAYLOR WHO TESTIFIED AT FDA HEARINGS LAST YEAR NOW SAYS HE HAS SEEN MORE THAN 500 WOMEN WITH IMPLANTS WHO SUFFER FROM VARIOUS DISEASES PATIENTS WHO SUFFERED SENSORY LOSS IN THEIR HANDS AND FEET AND SHORTTERM MEMORY LOSS ALSO EXPERIENCED RECOVERIES WITHIN DAYS OF GETTING IMPLANTS REMOVED WHEN YOU HAVE SIGNIFICANT IMPROVEMENT BOTH SYMPTOMATICALLY AND IN THE LAB IT'S DIFFICULT TO EXPLAIN THAT AWAY SAYS HARRIS BUSCH CHAIRMAN OF PHARMACOLOGY AT BAYLOR AND HE ADDS THERE IS SIGNIFICANT EVIDENCE OF IMPROVEMENT AFTER THE SILICONE IS REMOVED JULY 9 1991 THE FOOD AND DRUD ADMINISTRATION ACTING IN 1988 SETS THIS DEADLINE FOR MANUFACTURERS OF SILICONEGEL BREAST IMPLANTS TO PROVIDE DETAILED SAFETY DATA SEPT 23 1991 BRISTOLMYERS SQUIBB CO SAYS IT WILL CLOSE ITS BREAST IMPLANT BUSINESS BECAUSE IT CAN'T MEET THE FDA DEADLINE TO PROVE SAFETY DEC 13 1991 A SAN FRANCISCO FEDERAL COURT JURY ISSUES A 73 MILLION VERDICT AGAINST DOW CORNING CORP CONCLUDING THE COMPANY CONCEALED EVIDENCE LINKING RUPTURES TO IMMUNE DISORDERS JAN 6 1992 FDA COMMISSIONER DAVID KESSLER AFTER REVIEWING COMPANY DOCUMENTS ANNOUNCED A 45DAY MORATORIUM ON THE SALE OF SILICONE IMPLANTS FEB 10 1992 DOW CORNING SHAKES UP TOP MANAGEMENT IN THE WAKE OF AN FDA INQUIRY INTO SILICONE IMPLANT SAFETY FEB 1820 1992 AN FDA PANEL HEARS TESTIMONY ABOUT THE SAFETY OF SILICONE IMPLANTS AND DECIDES TO RECOMMEND LIMITED SALE OF THE DEVICES MARCH 19 1992 DOW CORNING SAYS IT WILL STOP MAKING SILICONE IMPLANTS APRIL 16 1992 THE FDA LIMITS IMPLANTS TO CLINICAL TRIALS AND TO WOMEN NEEDING RECONSTRUCTIVE SURGERY BECAUSE OF EFFECTS OF BREAST CANCER FOR EXAMPLE NOV 2 1992 DOW CORNING SAYS ITS OUTSIDE COUNSEL GRIFFIN BELL FOUND EVIDENCE THAT COMPANY EMPLOYEES FOR SEVERAL YEARS FAKED RECORDS ABOUT THE PREPARATION OF SOME SILICONE GEL USED IN IMPLANTS NOV 28 1992 A SCRIPPS RESEARCH INSTITUTE STUDY PUBLISHED BY LANCET STRENGTHENS THE LINK BETWEEN SILICONE IMPLANTS AND AUTOIMMUNE DISORDERS WOMENS WHOSE IMPLANTS LEAKED EXPERIENCED SYMPTOMS YEARS SOONER THAN WOMEN WHOSE IMPLANTS WERE INTACT DEC 23 1992 A HOUSTON WOMAN WINS 25 MILLION VERDICT AGAINST BRISTOLMYERS SQUIBB OVER SILICONE IMPLANTS JAN 5 1992 THE FDA BEGINS EVALUATING THE SAFETY OF BREAST IMPLANTS CONTAINING SALINE SOLUTION SEE RELATED STORY SALINE IMPLANTS APPEAR TO CARRY HAZARDS AS WELL FEB 3 1993 9302040060 930204 MARKETING & MEDIA NBC PICKS DON OHLMEYER FOR NEW POST OF OVERSEEING ENTERTAINMENT DIVISION BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC NAMED A FORMER SPORTS EXECUTIVE TO TAKE ON A NEW POST OVERSEEING THE ENTERTAINMENT DIVISION AND ITS SAGGING PRIMETIME PERFORMANCE THE SURPRISE MOVE BY NBC WHICH NAMED INDEPENDENT PRODUCER DON OHLMEYER PRESIDENT OF WEST COAST OPERATIONS IMPOSES A NEW LAYER OF AUTHORITY OVER NBC ENTERTAIMENT PRESIDENT WARREN LITTLEFIELD WHO HAD BEEN THE NETWORK'S TOP PROGRAMMING EXECUTIVE REPORTING DIRECTLY TO NBC PRESIDENT ROBERT WRIGHT UNTIL NOW MR LITTLEFIELD SEEMED TO HAVE SOLE AUTHORITY IN DEALING WITH HOLLYWOOD PRODUCERS BUT HIS ROLE MAY BE UNDERCUT BY MR OHLMEYER A FORMER EXECUTIVE PRODUCER OF NBC SPORTS WHO WENT ON TO PRODUCE SUCH EVENTS AS THE SKINS GOLF TOURNAMENT SEVERAL HIGHLY PRAISED TELEVISION MOVIES AND THE NETWORK'S SHORTLIVED MEDICAL FLOP LIFESTORIES MR OHLMEYER SAID HE DOESN'T BELIEVE THE NEW STRUCTURE IS A DEMOTION FOR MR LITTLEFIELD NBC'S PRIMETIME PERFORMANCE HAS WORSENED IN RECENT MONTHS AND IN JANUARY NBC A UNIT OF GENERAL ELECTRIC CO TOOK THE UNWIELDY STEP OF SETTING UP A MANAGEMENT COMMITTEE TO OVERSEE PROGRAMMING IT CONSISTS OF MR WRIGHT MR LITTLEFIELD AND THE PRESIDENTS OF NBC'S SPORTS NEWS AND STATIONS DIVISIONS NOW MR OHLMEYER WILL BE ADDED TO THE PANEL NBC HAS FALLEN INTO STEADILY DEEPER TROUBLE IN ITS PRIMETIME SCHEDULE FOLLOWING THE DEPARTURE OF MR LITTLEFIELD'S ALMOST LEGENDARY PREDECESSOR BRANDON TARTIKOFF MR OHLMEYER WHO WAS FIRST APPROACHED ABOUT THE JOB SEVERAL MONTHS AGO SAID HE DISCUSSED THE NEW JOB WITH MR TARTIKOFF BEFORE TAKING IT AFTER A SIXYEAR STRING AT THE TOP OF RATINGS THE NETWORK FELL FROM THE NO 1 SPOT LAST SEASON AND THIS SEASON NBC IS RUNNING A DISTANT THIRD ITS RATINGS HAD FALLEN 14 FROM A YEAR AGO UNTIL SUNDAY'S SUPER BOWL THE PEACOCK NETWORK NOW AVERAGES 11 OF TOTAL TV HOMES DOWN 11 FROM A YEAR AGO AFTER COUNTING THE RECORDHIGH SUPER BOWL PERFORMANCE NBC'S DECLINE STEMS PARTLY FROM MOVES MADE BY MR TARTIKOFF WHO LEFT AGING HITS ON THE AIR TOO LONG AND FAILED TO COME UP WITH MANY NEWCOMERS THAT STAYED ON THE SCHEDULE BUT THE NETWORK ERRED FURTHER THIS SEASON BY DROPPING SEVERAL OLDERAPPEAL SHOWS TO AIM FOR A NARROWER CORE AUDIENCE OF 18TO49YEAROLDS THE NEW SHOWS DIDN'T WORK AND RIVAL NETWORKS PICKED UP THE OTHERS AND DID WELL FOR EXAMPLE NBC DROPPED IN THE HEAT OF THE NIGHT AND MATLOCK WHICH WERE QUICKLY PICKED UP BY CBS AND ABC IRONICALLY ABC A UNIT OF CAPITAL CITIES/ABC INC IS WINNING THURSDAY NIGHTS THIS SEASON PREVIOUSLY AN NBC STRONGHOLD WITH A LINEUP THAT INCLUDES MATLOCK MR WRIGHT ACKNOWLEDGED THE ERROR OF NBC'S PROGRAMMING STRATEGY THIS SEASON WE WERE MORE AMBITIOUS THAN OUR DEVELOPMENT ALLOWED US TO BE AND WE WENT TOO FAR TOO FAST HE SAID IT WILL BE MR OHLMEYER'S NEW TASK TO FIX THE ERRORS WE NEED TO MAKE THE TENT AS BIG AS WE CAN MAKE IT THAT'S THE ADVANTAGE OF BROADCASTING OVER NARROWCASTING HE SAID IN A TELEPHONE CONFERENCE WITH REPORTERS THAT INCLUDED MR WRIGHT BUT NOT MR LITTLEFIELD MR OHLMEYER SAID THAT ALTHOUGH HE WILL FIRST CONCENTRATE ON GETTING NBC OUT OF THIRD PLACE WORKING ON A SHOWBYSHOW BASIS MOST OF HIS TIME WILL BE TAKEN UP DEVELOPING A LONGERTERM STRATEGY TO KEEP THE NETWORK VIABLE IN THE FACE OF CABLE AND OTHER COMPETITION 9302040059 930204 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN TESTING THE WATERS A FEW MANUFACTURERS FLOAT PRICE INCREASES HIGHER STEEL PRICES AND AN IMPROVING ECONOMY GET FIRMS DREAMING ABOUT HOISTING PRICES BUT MOST STAND PAT DEVLIEG BULLARD INC A CONNECTICUT MACHINETOOL SERVICER THIS WEEK RAISED PRICES 4 BUT WE'LL BE LUCKY TO HOLD 2 OF THAT SAYS THE FIRM'S LAWRENCE MURRAY CITY MACHINE TOOL & DIE CO MUNCIE IND QUOTES A 5 HIKE ON ITS CUSTOMMADE MACHINE TOOLS BUT BLAMES SOARING GROUP INSURANCE PREMIUMS NOT HIGHER STEEL COSTS OR ECONOMIC OPTIMISM IT'S PERHAPS A BIT TOO EARLY IN THE RECOVERY TO RAISE PRICES SAYS ROB HILTON OF NACCO INDUSTRIES A CLEVELAND MAKER OF FORKLIFTS AND APPLIANCES DITTO FOR DAYTON MACHINE TOOL CO IN OHIO COMPETITION HELPS KEEP THE LID ON PRICING GIDDINGS & LEWIS INC WISCONSIN SAYS SELECTIVE INCREASES MAY OCCUR BUT G&L NOTES WE WILL MEET THE MARKET ONE AREA OF PICKUP CONSTRUCTION FORMICA CORP WAYNE NJ STUDIES THE SIZE AND TIMING OF A 1993 PRICE HIKE BIG COMPANIES WARY OF PRICEFIXING CHARGES SHY AWAY FROM PRICE TALK A STANDOFF ON STAIR SAFETY PITS SOME ERGONOMISTS AGAINST HOME BUILDERS IN 1991 THE CODE GROUP FOR THE NORTHEAST AND MIDWEST ADOPTED THE RULE REVERSED IT IN 1992 AND ADMITS THE LONGSTANDING ISSUE IS HARDLY DEAD COMMERCIAL BUILDINGS ALREADY USE THE 711 RULE THIS WEEK THE INTERNATIONAL CONFERENCE OF BUILDING OFFICIALS COVERING THE WEST HEARS BOTH SIDES OF THE STAIR CASE IT'S AN ISSUE OF SAFETY AND ECONOMICS SAYS JAMES BIHR ICBO PRESIDENT WOMEN OF YESTERYEAR GAIN ATTENTION FROM TODAY'S WOMEN COLLECTORS LETTERS AND OTHER WRITINGS BY THE LIKES OF MARIE ANTOINETTE VIRGINIA WOLFE MARY CASSATT AND LOUISA MAY ALCOTT MADE KENNETH RENDELL GALLERY'S BOOTH A POPULAR STOP FOR WOMEN AT NEW YORK'S WINTER ANTIQUES SHOW WOMEN ARE MAKING MORE MONEY AND IT'S NOT NECESSARILY GOING TO CLOTHES OR THE HOME SAYS SHIRLEY MCNERNEY RENDELL WHO CULLED THE WRITINGS MEANWHILE INVESTMENT GURU JAMES BLANCHARD SAYS FIRST LADIES' SIGNED PAPERS OUTSELL MANY OTHER AUTOGRAPHS IN HIS LATEST VENTURE THE JEFFERSON RARITIES COLLECTION CATALOG BUYERS REALIZE THE FIRST LADIES ARE VERY UNDERVALUED SAYS MR BLANCHARD MAYBE SOME BUT CERTAINLY NOT ALL THE PRESIDENTS' MATES ARE SAYS THOMAS LINGENFELTER OF THE HERITAGE COLLECTORS SOCIETY DOYLESTOWN PA A NICE DOLLEY MADISON MIGHT FETCH MORE THAN HER HUSBAND BUT DON'T EXPECT A GRACE COOLIDGE TO GET HOT MR LINGENFELTER NOTES STILL MANY LADIES ARE PRICED RIGHT FOR NOVICES AT UNDER 1000 THE FREEFRANK ENVELOPES SIGNED BY FIRST LADIES IN LIEU OF STAMPS DRAWS STAMP AND AUTOGRAPH BUFFS ANYBODY WHO GETS A LETTER FROM HILLARY CLINTON BETTER SAVE IT SAYS MS RENDELL PUTTING AND PUTPUTTING COMBINE AS MICHIGAN CONSOLIDATED GAS CO SPONSORS CONVERSION OF 80 GOLF CARTS TO NATURALGAS USE THE FIRST US FLEET OF NATURALGAS CARTS WILL ROLL THIS SUMMER WHEN THE ORCHARDS GOLF CLUB OPENS IN WASHINGTON MICH OLD BAGS GET SACKED NEW BAGS GET SCENTED AND STUFFED INTO NEWSPAPERS AS PROMOS MODERN ARTS A NEW YORK PACKAGE DESIGNER MADE A PERFUMED SHOPPING BAG TO BOOST A NEW COLOGNE AND SAYS THE INSERTS MARK A GROWING TREND MEANWHILE IN CHICAGO MARSHALL FIELD'S DUMPS ITS DEEPGREEN TRADEMARKBAG FOR RECYCLABLE BROWN PAPER JAPANESE FIRMS TOPPED THE LIST OF US PATENT AWARDS FOR THE SEVENTH YEAR IN A ROW IN 1992 SAYS A COMING ISSUE OF PATENT INTELLIGENCE AND TECHNOLOGY REPORT ALEXANDRIA VA CANON TOSHIBA MITSUBISHI AND HITACHI HELD THE TOP FOUR SLOTS AND GENERAL ELECTRIC CO WAS RANKED FIFTH A BIODEGRADABLE PLASTIC GAINS NOTICE FROM IMAGECONSCIOUS TOILETRY FIRMS BROCATO INTERNATIONAL A BATON ROUGE LA HAIRCARE COMPANY MARKETS SHAMPOO AND CONDITIONER IN BOTTLES MADE OF BIOPOL A PLASTIC PRODUCED BY BACTERIA THE SHELFSTABLE MATERIAL MADE BY A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC BREAKS DOWN WHEN THE CONTAINER IS BURIED IN SOIL OR SEWAGE BUT NOT IN AIRTIGHT LANDFILLS BERLIN PACKAGING BIOPOL'S DISTRIBUTOR IN THE US SAYS TWO OTHER PERSONALCARE FIRMS PLAN TO USE THE PLASTIC THIS YEAR WHILE THE TREND TOWARD ORGANIC PRODUCTS AND PACKAGING MAY ENCOURAGE MORE USE OF THE PLASTIC COST IS A BIG DETERRENT SAYS BEN MIYARES OF PACKAGING STRATEGIES NEWSLETTER BIOPOL COSTS AS MUCH AS 10 A POUND WHILE REGULAR PLASTIC COSTS ONLY ABOUT 40 CENTS PER POUND THE BODY SHOP SAYS IT TESTED BIOPOL BUT REJECTED IT PARTLY BECAUSE OF CONCERN THAT CUSTOMERS WOULD MAKE LESS OF AN EFFORT TO REUSE OR RECYCLE CONTAINERS BRIEFS MAY CO CLOSES ITS 94YEAROLD CLEVELAND STORE AND DONATES ARTIFACTS SUCH AS LEDGERS AND ADS TO THE WESTERN RESERVE HISTORICAL SOCIETY WELL IT IS WINDY THERE CHICAGO BULLS PENNANTS OUTSOLD THOSE OF OTHER PRO BASKETBALL TEAMS IN 1992 AND THE WHITE SOX RANKED SECOND IN BASEBALL PENNANT SALES SAYS WINCRAFT INC WINONA MINN A MAKER OF LICENSED SPORTS ITEMS 9302040058 930204 INTERNATIONAL DISCOUNT RATE IS CUT IN JAPAN BY 075 POINT CENTRAL BANK REDUCES FEE TO 25 IN AN ATTEMPT TO AID WEAK ECONOMY BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO LAUNCHING YET ANOTHER EFFORT TO REVIVE THE NATION'S FALTERING ECONOMY JAPAN'S CENTRAL BANK LOWERED ITS DISCOUNT RATE TO 25 MATCHING ITS LOWEST LEVEL EVER FROM 325 THE REDUCTION IN THE RATE WHICH IS CHARGED BY THE BANK OF JAPAN ON LOANS TO OTHER BANKS WAS ANNOUNCED THURSDAY MORNING AND FOLLOWED A STRING OF GLOOMY ECONOMIC INDICATORS IT IS FAR FROM CLEAR HOWEVER WHETHER THE CUT WILL BE ENOUGH TO SPEED AN ECONOMIC RECOVERY IN JAPAN MANY ECONOMISTS HAD EXPECTED THE REDUCTION MONTHS AGO AND SOME OF THEM HAVE SAID THAT THE CENTRAL BANK'S HEELDRAGGING HAS FURTHER DELAYED A RECOVERY INDEED SOME ECONOMISTS BELIEVE THE CENTRAL BANK MAY BE FORCED TO LOWER THE RATE AT LEAST ONCE MORE TO BRING THE ECONOMY BACK TO LIFE IT'S HARD TO IMAGINE ANY CIRCUMSTANCES IN WHICH THE BANK OF JAPAN WOULDN'T WANT TO CUT THE RATE AGAIN SAID MICHAEL NALDRETT AN ECONOMIST AT KLEINWORT BENSON INTERNATIONAL INC WHO EXPECTS THE CENTRAL BANK TO LOWER THE DISCOUNT RATE TO 175 BY THE END OF 1993 MR NALDRETT AND OTHER ANALYSTS SAID THE BANK OF JAPAN WILL BE FORCED TO EASE AGAIN TO MAINTAIN THE STABILITY OF JAPAN'S FINANCIAL INSTITUTIONS WHICH ARE REELING FROM THE AFTERSHOCK OF THE COLLAPSE IN JAPANESE ASSET PRICES THIS IS MOSTLY ABOUT SAVING THE FINANCIAL SECTOR HE SAID POLICY MAKERS ALSO HOPE LOWER RATES WILL LIFT THE OVERALL ECONOMY BY LOWERING CORPORATE BORROWING COSTS IN DECEMBER THE CENTRAL BANK RELEASED A SURVEY SHOWING THAT JAPANESE BUSINESS CONFIDENCE HAD PLUMMETED TO ITS LOWEST POINT SINCE 1975 AND THE GOVERNMENT SAID THAT JAPAN'S GROSS DOMESTIC PRODUCT CONTRACTED IN THE QUARTER ENDED SEPT 30 FOR THE SECOND STRAIGHT QUARTER THE FIRST TIME THAT HAS HAPPENED IN NEARLY TWO DECADES FACED WITH SUCH DATA THE JAPANESE GOVERNMENT HAS LOWERED ITS ECONOMICGROWTH FORECAST FOR THE CURRENT FISCAL YEAR WHICH ENDS ON MARCH 31 TO 16 FROM 35 THAT MARKED A CHANGE FROM MONTHS OF GOVERNMENT INSISTENCE THAT THE ECONOMY WOULD GROW STRONGLY AT A NEWS CONFERENCE HELD AFTER THE CUT WAS ANNOUNCED THURSDAY BANK OF JAPAN GOVERNOR YASUSHI MIENO SAID THAT THE ECONOMY IS FOR THE TIME BEING RELIANT ON PUBLICSECTOR SPENDING AND THAT THE RECOVERY PACE CAN'T HELP BUT BE SLOW THE WEAKNESS OF JAPAN WHICH IS THE WORLD'S SECONDLARGEST ECONOMY IS A MAJOR WORRY FOR THE US WHERE EXPORTS HAVE BECOME INCREASINGLY IMPORTANT TO THE ECONOMY WITH ITS APPETITE FOR FOREIGN GOODS LESSENING JAPAN'S 1992 TRADE SURPLUS WAS 10706 BILLION A RECORD THE BUSH ADMINISTRATION HAD PRESSED JAPAN TO INCREASE GOVERNMENT SPENDING OR CUT INTEREST RATES OR BOTH AND THE CLINTON ADMINISTRATION IS EXPECTED TO TAKE THE SAME STANCE TREASURY SECRETARY LLOYD BENTSEN HAS REPEATEDLY TALKED OF IMPROVING INTERNATIONAL COOPERATION TO REVIVE THE WORLD ECONOMY WE WELCOME THE REDUCTION IN JAPANESE INTEREST RATES IN LIGHT OF RECENT ECONOMIC CONDITIONS MR BENTSEN SAID IN A STATEMENT IT SHOULD HELP TO STRENGTHEN DOMESTIC DEMAND AND IN TURN HELP SHRINK JAPAN'S VERY LARGE EXTERNAL SURPLUS AND IT WILL ASSIST IN STRENGTHENING WORLD ECONOMIC GROWTH THE JAPANESE MOVE ISN'T LIKELY TO HAVE MUCH IMMEDIATE IMPACT ON THE US FEDERAL RESERVE WHICH IS PRIMARILY FOCUSED ON DOMESTIC ECONOMIC CONDITIONS FED POLICY MAKERS MET THIS WEEK TO SET INTERESTRATE POLICY FOR THE NEXT SEVERAL WEEKS AMID SIGNS THAT THE US ECONOMY IS FINALLY PICKING UP STEAM THURSDAY'S CUT BY THE BANK OF JAPAN FOLLOWED A QUIET POLICY STRUGGLE BETWEEN THE CENTRAL BANK AND THE POWERFUL FINANCE MINISTRY OVER THE PAST YEAR AUTHORITIES AT BOTH INSTITUTIONS HAVE TAKEN STEPS MEANT TO LIFT THE COUNTRY OUT OF ITS SLUMP BUT SO FAR THE MEASURES HAVE HAD LITTLE DISCERNIBLE EFFECT AS BUSINESS CONDITIONS HAVE STAGNATED EACH INSTITUTION HAS URGED THE OTHER TO TAKE BOLDER ACTION PRIOR TO THE LATEST REDUCTION THE CENTRAL BANK HAD CUT THE DISCOUNT RATE LAST APRIL TO 375 FROM 45 AND AGAIN IN JULY TO 325 THE NEW 25 LEVEL MATCHES THE RECORDLOW RATE THAT PREVAILED FOR SLIGHTLY MORE THAN TWO YEARS BEGINNING IN FEBRUARY 1987 ALL TOLD THE DISCOUNT RATE HAS BEEN CUT SIX SUCCESSIVE TIMES ON THE FISCAL SIDE THE GOVERNMENT RECENTLY PUT FORTH A 107 TRILLION YEN 86 BILLION PACKAGE OF PUBLICWORKS SPENDING AND OTHER MEASURES AIMED AT GIVING THE ECONOMY A LIFT THEN ON DEC 21 THE FINANCE MINISTRY RELEASED A BUDGET PROPOSAL FOR THE COMING FISCAL YEAR BUT ECONOMISTS SAID IT WOULDN'T BE ENOUGH TO GIVE THE ECONOMY A SIGNIFICANT BOOST THE MINISTRY'S PROPOSAL CALLS FOR RAISING GOVERNMENT EXPENDITURES IN THE YEAR BEGINNING APRIL 1 TO 7236 TRILLION YEN UP ONLY 02 FROM THE CURRENT YEAR IN RECENT WEEKS THE MINISTRY HAS PURCHASED GOVERNMENT BONDS DIRECTLY USING MONEY FROM PUBLIC PENSIONS AND THE NATION'S POSTAL SAVINGS FUND ANALYSTS INTERPRETED THE UNPRECEDENTED MOVE AS A CLEAR ATTEMPT TO PRESSURE THE CENTRAL BANK TO LOWER THE DISCOUNT RATE MINISTRY OFFICIALS HOPE LOWER INTEREST RATES WILL HELP STAVE OFF CALLS FOR GREATER FISCAL STIMULUS A NUMBER OF PROMINENT POLITICIANS AND BUSINESS LEADERS HAVE CALLED FOR TAX CUTS AND DEFICIT FINANCING IN THE COMING FISCAL YEAR A PRACTICE THE MINISTRY ABHORS 9302040057 930204 BUSINESS BRIEF MELAMINE CHEMICALS INC JOINT VENTURE IS PLANNED WITH NORWAY'S NORSK HYDRO MELAMINE CHEMICALS INC DONALDSONVILLE LA SAID IT WILL FORM A JOINT VENTURE WITH NORSK HYDRO AS OSLO MELAMINE CHEMICALS SAID THAT INITIALLY THE JOINT VENTURE COMPANY WILL SERVE AS A MARKETING AND SALES AGENT IN EUROPE FOR MELAMINE CHEMICALS PRODUCTS AT THE SAME TIME MELAMINE CHEMICALS AND NORSK HYDRO A CHEMICAL CONCERN WILL CONTINUE A FEASIBILITY STUDY INTO BUILDING A PLANT TO PRODUCE MELAMINE AT A NORSK HYDRO SITE IN EUROPE MELAMINE IS A SPECIALTY CHEMICAL WITH INDUSTRIAL AND COMMERCIAL USES IF THE PLANT IS BUILT THE JOINT VENTURE COMPANY WOULD BECOME THE CENTER OF ITS OPERATIONS MELAMINE CHEMICALS SAID SO FAR THE STUDY APPEARS PROMISING BUT MORE ENGINEERING AND MARKET RESEARCH IS NEEDED MELAMINE CHEMICALS SAID THE ADDITIONAL WORK SHOULD BE COMPLETED DURING 1993 THE COMPANY SAID 9302040056 930204 CORRECTIONS & AMPLIFICATIONS THE PRUDENT SPECULATOR WAS ONE OF THE TOPPERFORMING INVESTMENT NEWSLETTERS OF 1992 ACCORDING TO HULBERT FINANCIAL DIGEST THE NEWSLETTER'S NAME WAS GIVEN INCORRECTLY IN A TABLE ACCOMPANYING YESTERDAY'S YOUR MONEY MATTERS COLUMN DAVID RAMSAY AN ANALYST AT WOOD GUNDY INC IN TORONTO PUTS THE NET ASSET VALUE OF BRASCAN LTD AT 1250 CANADIAN DOLLARS US989 A SHARE AFTER ACCOUNTING FOR THE COMPANY'S EXPOSURE TO ROYAL TRUSTCO LTD AND TRILON FINANCIAL CORP AN ARTICLE TUESDAY DIDN'T MAKE CLEAR THAT THE NET ASSET VALUE FIGURE REFLECTED THIS EXPOSURE DELL COMPUTER CORP'S ESTIMATED EARNINGS FOR THE FISCAL FOURTH QUARTER OF 76 CENTS A SHARE REPRESENT AN 85 INCREASE FROM THE YEAREARLIER FIGURE OF 41 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN APRIL AN ARTICLE TUESDAY FAILED TO GIVE AN ADJUSTED FIGURE FOR THE SPLIT AND THUS UNDERSTATED THE INCREASE 9302040055 930204 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ELECTRONIC MAIL IS AN INCREASINGLY IMPORTANT FORM OF BUSINESS AND EVEN PERSONAL COMMUNICATION BUT IT'S WAY TOO COMPLEX AND COSTLY FOR AVERAGE COMPUTER USERS RIGHT WRONG JUST ABOUT ANYBODY WITH A PERSONAL COMPUTER AND A MODEM THE DEVICE THAT HOOKS COMPUTERS UP TO THE PHONE SYSTEM CAN SUBSCRIBE TO A COMMERCIAL EMAIL NETWORK FOR REASONABLE PRICES THEN YOU CAN USE A VARIETY OF SOFTWARE INCLUDING SOME SIMPLE PROGRAMS TO EXCHANGE MESSAGES FROM YOUR SCREEN WITH MILLIONS OF PEOPLE IN THE US AND ABROAD BOTH AMERICAN TELEPHONE & TELEGRAPH AND MCI COMMUNICATIONS THE TITANS OF LONGDISTANCE PHONE SERVICE ALSO OFFER COMMERCIAL EMAIL SERVICES CALLED AT&T MAIL AND MCI MAIL ANOTHER POPULAR SERVICE IS RUN BY COMPUSERVE THE BIG ONLINE DATABASE SERVICE OWNED BY H&R BLOCK IN MOST CASES YOU SIMPLY BANG OUT MESSAGES TO SEND AND READ MESSAGES YOU HAVE RECEIVED WHILE OFFLINE THAT IS WHEN YOU'RE NOT CONNECTED TO THE SYSTEM THEN AT THE TOUCH OF A KEY OR THE CLICK OF A MOUSE THE SOFTWARE WILL AUTOMATICALLY DIAL UP YOUR SERVICE RAPIDLY SEND ALL THE MESSAGES YOU'VE COMPOSED SINCE YOUR LAST CALL AND JUST AS QUICKLY PULL INTO YOUR OWN COMPUTER ANY MESSAGES OTHERS HAVE LEFT FOR YOU EACH USER HAS AN ELECTRONIC MAILBOX A SMALL PART OF THE DISK STORAGE SPACE ON THE SYSTEMS' MAINFRAME COMPUTERS EACH MAILBOX HAS A DISTINCT ADDRESS PLUS A SEPARATE PASSWORD FOR SECURITY USERS CAN FIND ADDRESSES IN ONLINE LISTINGS THESE COMMERCIAL EMAIL SYSTEMS EVEN ALLOW YOU TO SEND MESSAGES TO PEOPLE WHO LACK COMPUTERS FOR AN EXTRA FEE YOU CAN DIRECT THAT ANY MESSAGE BE DELIVERED AS A FAX OR LETTER FOR ANOTHER ADDITIONAL FEE SOME SERVICES WILL PRINT FAXES AND LETTERS ON COPIES OF YOUR OWN LETTERHEAD WITH COPIES OF YOUR SIGNATURE MOST OF THE BIG SERVICES ALSO PERMIT MEMBERS TO SEND AND RECEIVE MESSAGES TO AND FROM ACCOUNT HOLDERS ON COMPETING NETWORKS AND TO PEOPLE WHO BELONG TO INHOUSE EMAIL SYSTEMS AT LARGE COMPANIES THAT HAVE CONFIGURED THEIR NETWORKS TO CONNECT TO THE OUTSIDE WORLD IN MOST CASES YOU CAN ALSO LINK UP WITH PEOPLE WHO USE THE INTERNET A VAST INTERLOCKING SYSTEM OF COMPUTER NETWORKS MOSTLY AT UNIVERSITIES AND GOVERNMENT AGENCIES THIS ADDS UP TO A TREMENDOUS TOOL FOR INDIVIDUALS AND SMALL BUSINESSES A WAY TO HELP EVEN THE PLAYING FIELD WITH THE BIG BOYS SITTING IN A HOME OR STOREFRONT OFFICE WITH ANY MAINSTREAM BRAND OF COMPUTER AN EMAIL SUBSCRIBER CAN COMPOSE A SINGLE MESSAGE AND WITH A SINGLE KEYSTROKE FIRE IT OFF TO DOZENS OF SUPPLIERS OR CUSTOMERS ONE MINUTE SHE CAN GET THE SAME INSTANT PRICE UPDATES LONG AVAILABLE TO BIG COMPANIES AND THE NEXT MINUTE SHE CAN SEND AN EMAIL NOTE TO HER DAUGHTER AT COLLEGE BECAUSE THE SYSTEMS HOLD MAIL FOR MEMBERS UNTIL THEY CALL IN THEY AVOID THE PROBLEM OF TELEPHONE TAG AND SINCE THE COMPUTERS TRANSMIT MESSAGES QUICKLY YOU CAN CRAM MUCH MORE INFORMATION INTO A BRIEF EMAIL CALL THAN INTO A REGULAR VOICE MESSAGE COMMERCIAL EMAIL RARELY SWAMPS USERS WITH FLOODS OF MESSAGES UNLIKE INHOUSE CORPORATE EMAIL SYSTEMS WHERE MESSAGES ARE FREE AND DON'T REQUIRE PLACING A PHONE CALL SO HOW MUCH DOES IT COST IN MOST CASES YOU CAN REACH THE COMMERCIAL EMAIL SYSTEMS BY PLACING A LOCAL CALL OR DIALING A TOLLFREE NUMBER USERS ARE TYPICALLY CHARGED ONLY FOR MESSAGES THEY SEND NOT THOSE THEY RECEIVE THE COST IS BASED ON THE LENGTH OF THE MESSAGES NOT THE TIME SPENT ONLINE FOR LONG DOCUMENTS EMAIL CAN GET COSTLY FOR SMALL LETTERS IT CAN BE QUICKER AND CHEAPER THAN OVERNIGHT DELIVERY SERVICES PRICING PLANS VARY THEY CAN BE COMPLEX THE BASIC CHARGE FOR MY FAVORITE SERVICE MCI MAIL IS 35 A YEAR EACH MESSAGE COSTS 50 CENTS FOR THE FIRST 500 CHARACTERS OR ROUGHLY 75 WORDS THE SECOND 500 CHARACTERS AND EACH OF THE NEXT SEVERAL 1000 CHARACTERS COST A DIME THE RATE DROPS TO A NICKEL PER THOUSAND CHARACTERS BEYOND 10000 CHARACTERS A MESSAGE AS LONG AS THIS COLUMN WOULD COST ABOUT 1 TO SEND THROUGH MCI MAIL TO ANYBODY IN THE US OR ABROAD SOFTWARE IS A CRUCIAL ISSUE IT'S BEST TO USE SPECIAL PROGRAMS CALLED FRONT ENDS WHICH STREAMLINE AND AUTOMATE THE PROCESS OF WRITING MESSAGES DIALING INTO YOUR SERVICE AND READING AND STORING YOUR EMAIL MCI AND AT&T BOTH OFFER THEIR OWN FRONTEND SOFTWARE BUT SEVERAL OTHER PROGRAMS ARE BETTER IN MY VIEW ONE IS THE WIRE FROM SWFTE INTERNATIONAL A 90 FRONT END FOR MCI MAIL CUSTOMERS WITH IBMCOMPATIBLE PCS RUNNING MICROSOFT WINDOWS COMPUSERVE'S 30 MEMBERSHIP KIT INCLUDES A GOOD PROGRAM INFORMATION MANAGER IN VERSIONS FOR DOS WINDOWS AND APPLE COMPUTER'S MACINTOSH SOFTWARE VENTURES' 140 MICROPHONE PROGRAM FOR THE MAC AND WINDOWS ALSO INCLUDES GOOD FRONT ENDS FOR MCI AND COMPUSERVE IT WOULD BE IDEAL TO HAVE ONE PIECE OF DEDICATED SIMPLE SOFTWARE THAT CAN AUTOMATICALLY MANAGE YOUR MAIL ON MULTIPLE SERVICES ONE BUTTON MAIL FROM SIGEA SYSTEMS WESTON MASS AN IBMCOMPATIBLE PROGRAM THAT HANDLES BOTH MCI AND COMPUSERVE IS GREAT BUT COSTLY AT 250 HEWLETTPACKARD PLANS TO INTRODUCE THIS SPRING A 99 WINDOWS FRONT END THAT CAN HANDLE FOUR MAJOR EMAIL SERVICES ONE FINAL ADVANTAGE OF EMAIL IS WORTH MENTIONING I HAVE YET TO RECEIVE AN ELECTRONIC JUNK MESSAGE DECLARING YOU MAY HAVE WON A MILLION DOLLARS BUT IF SOME SWEEPSTAKES COMPANY READING THIS WANTS TO GIVE AWAY A LOT OF MONEY VIA EMAIL I CAN BE FOUND ON MCI MAIL AT THE ADDRESS WMOSSBERG 9302040054 930204 BUSINESS BRIEF FRUIT OF THE LOOM INC FIRM'S SHARES JUMP ON NEWS OF STRONG 4THQUARTER NET FRUIT OF THE LOOM INC SHARES JUMPED AFTER THE APPARELMAKER REPORTED SLIGHTLY STRONGERTHANANTICIPATED FOURTHQUARTER EARNINGS AND ISSUED AN UPBEAT APPRAISAL OF THE YEAR TO COME IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY FRUIT OF THE LOOM SHARES CLIMBED 3875 TO CLOSE AT 48875 A SHARE THE COMPANY IN CHICAGO SAID THE LATEST PERIOD'S NET AFTER A 99 MILLION CHARGE FOR EARLY REDEMPTION OF DEBT WAS 391 MILLION OR 51 CENTS A SHARE UP 23 FROM 317 MILLION OR 42 CENTS A SHARE A YEAR EARLIER EXCLUDING THE CHARGE EARNINGS INCREASED 54 FROM A YEAR EARLIER SALES GREW 67 TO 4465 MILLION FROM 4186 MILLION FOR THE YEAR FRUIT OF THE LOOM HAD NET OF 1786 MILLION OR 235 A SHARE UP 61 FROM THE PRIOR YEAR'S 111 MILLION OR 160 A SHARE THE LATEST YEAR INCLUDED THE 13 CENTASHARE FOURTHQUARTER CHARGE REVENUE INCREASED 14 TO 186 BILLION FROM 163 BILLION 9302040053 930204 GENERAL MOTORS HAS ITS DEBT DOWNGRADED S&P CUTS RATINGS CITING PENSION MEDICAL COSTS BUT SALES BOOST STOCK BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT STANDARD & POOR'S CORP DOWNGRADED GENERAL MOTORS CORP'S DEBT AND PULLED ITS TOPTIER COMMERCIAL PAPER RATING SAYING THE NO 1 AUTO MAKER'S PENSION AND MEDICAL COST LIABILITIES ARE MATERIALLY LARGER THAN PREVIOUSLY ASSUMED BUT GM STOCK JUMPED ON SIGNS OF A SALES REBOUND THE RATING AGENCY'S ACTION COMES TWO DAYS AFTER GM DISCLOSED IT WILL RECORD A TOTAL OF 222 BILLION IN CHARGES AGAINST 1992 RESULTS TO REFLECT ITS RETIREE MEDICAL BENEFIT OBLIGATIONS IN A STATEMENT S&P HIGHLIGHTED THE GAP BETWEEN GM'S FASTIMPROVING OPERATING PERFORMANCE AND THE DETERIORATION OF ITS BALANCE SHEET AND FUTURE CASH FLOW THREATENED BY SPIRALING PENSION AND MEDICAL LIABILITIES S&P CUT THE RATINGS ON 86 BILLION IN GM DEBT DESPITE AN ASSESSMENT THAT GM PRESIDENT JOHN F SMITH JR'S MANAGEMENT WILL BE EFFECTIVE IN RETURNING THE COMPANY'S CORE NORTH AMERICAN AUTOMOTIVE OPERATIONS TO AT LEAST A BREAKEVEN LEVEL S&P TOOK GM'S RATINGS OFF CREDITWATCH AND SAID FURTHER CREDIT EROSION WITHIN THE NEXT FEW YEARS IS UNLIKELY INVESTORS APPEARED TO FOCUS ON S&P'S POSITIVE COMMENTS AND ON STRONG OVERALL US CAR AND TRUCK SALES DURING THE LAST TEN DAYS OF JANUARY TO BID GM SHARES TO 39125 UP 175 THE STOCK TRADED UP BECAUSE CAR SALES WERE STRONG SAID PAINEWEBBER ANALYST STEPHEN GIRSKY GM'S SHARE OF THE LIGHT VEHICLE MARKET HOWEVER DROPPED TO 33 FROM 347 A YEAR AGO GM ALSO EMPHASIZED THE POSITIVE IN ITS RESPONSE TO S&P RESULTS FROM NORTH AMERICAN OPERATIONS IMPROVED SIGNIFICANTLY IN 1992 SAID THE COMPANY'S CHIEF FINANCIAL OFFICER G RICHARD WAGONER HE ADDED THAT THE COMPANY'S BIG FINANCE UNIT GENERAL MOTORS ACCEPTANCE CORP RETAINS VERY GOOD ACCESS TO CAPITAL MAR KETS BUT S&P'S ACTION WILL COMPLICATE GM'S TURNAROUND EFFORTS BY RAISING BORROWING COSTS THE DOWNGRADE OF COMMERCIAL PAPER RATINGS FOR GMAC AND FOR GM'S DATA PROCESSING SUBSIDIARY ELECTRONIC DATA SYSTEMS CORP COULD RESTRICT THEIR ABILITY TO RAISE LOWCOST CAPITAL ALTHOUGH GM HAS TOPTIER PAPER RATINGS FROM TWO SMALL RATINGS FIRMS MOST MAJOR COMMERCIAL PAPER BUYERS FOLLOW S&P AND MOODY'S INVESTORS SERVICES INC RATINGS BOTH THE BIG RATINGS CONCERNS LIST GM COMMERCIAL PAPER AS A SECONDTIER RISK S&P NOW RATES GM SENIOR DEBT AT TRIPLEBPLUS DOWN FROM SINGLEAMINUS COMMERCIAL PAPER ISSUED BY GMAC AND ELECTRONIC DATA SYSTEMS IS RATED A2 IN STEAD OF A1 S&P'S ACTION FOLLOWS MOODY'S DECISION LAST NOVEMBER TO DROP GM'S COM MERCIAL PAPER RATINGS TO SECONDTIER STATUS AND DOWNGRADE GM'S SENIOR DEBT BY TWO NOTCHES TO BAA1 GMAC'S SIZE AND ITS EFFORTS TO CUT SHORTTERM DEBT COULD ALLOW THE FINANCE UNIT TO CONTINUE TO SELL MORE THAN THE 11 BILLION IN COMMERCIAL PAPER IT NEEDS DESPITE THE RATINGS DOWNGRADE SAID ROBERT T O'CONNELL GM SENIOR VICE PRESIDENT AND GMAC'S CHAIRMAN WE MAY HAVE A VERY SPECIAL PRESENCE IN THE MARKET MR O'CONNELL SAID GMAC HAS 165 BILLION IN COMMERCIAL PAPER OUTSTANDING S&P'S ACTION POINTED OUT THE PROBLEMS GM FACES FROM AN AGING WORK FORCE WITH GENEROUS RETIREMENT BENEFITS IN ADDITION TO THE BIG MEDICAL COST LIABILITY GM HAS AN UNFUNDED PENSION LIABILITY THAT COULD EXCEED 11 BILLION ANALYSTS SAY DOLING OUT CASH EACH YEAR TO PAY DOWN THESE MASSIVE BENEFITS OBLIGATIONS WILL DRAIN GM'S FINANCES FOR THE FORESEEABLE FUTURE S&P SAID GM PAID 34 BILLION OR 920 A VEHICLE IN MEDICAL COSTS FOR ABOUT 17 MILLION US EMPLOYEES RETIREES AND DEPENDENTS IN 1991 A GM SPOKESMAN SAID THIS CASH FLOW ISSUE IS VERY VERY SERIOUS SAID TED SHASTA A VICE PRESIDENT AT LOOMIS SAYLES & CO A BOSTON INVESTMENT COMPANY AND BECAUSE THESE HUGE LIABILITIES ARE A PROBLEM ONLY FOR A FEW OLDLINE INDUSTRIAL COMPANIES HE ADDED INVESTORS CAN SAY I DON'T NEED THIS I HAVE THE OTHER 90 OF THE ECONOMY TO INVEST IN GM NOW IS UNDERTAKING A TWOTRACK STRATEGY TO REDUCE ITS MEDICAL COSTS IT WILL TRY TO PERSUADE THE UNITED AUTO WORKERS UNION TO ACCEPT A CAP ON MEDICAL BENEFITS FOR UAW RETIREES SIMILAR TO ONE IMPOSED LAST YEAR FOR GM SALARIED RETIREES AND ACTIVE WORKERS BUT UAW LEADERS HAVE REPEATEDLY DECLARED THEY WON'T ACCEPT CURTAILMENT OF MEDICAL BENEFITS AT GM ALTHOUGH THEY RECENTLY ACCEPTED LIMITED REDUCTIONS AT NAVISTAR INTERNATIONAL INC GM ALSO HAS JOINED THE CHORUS CALLING ON THE CLINTON ADMINISTRATION TO RELIEVE SOME OF THE MEDICAL COST BURDEN THROUGH NATIONAL HEALTH INSURANCE OR TAXES ON VEHICLES PRODUCED BY JAPANESE AUTO MAKERS WHOSE US PLANTS HAVE YOUNGER NONUNION WORK FORCES AND LOWER HEALTH COSTS SEPARATELY S&P UPGRADED CHRYSLER CORP'S SENIOR DEBT TO JUST ONE NOTCH BELOW INVESTMENT GRADE AT ITS LAST UPGRADE ON JAN 11 S&P SAID IT MIGHT UPGRADE CHRYSLER'S DEBT AGAIN IF THE AUTO MAKER SUCCESSFULLY COMPLETED A NEW COMMON STOCK OFFERING CHRYSLER DID SO YESTERDAY RAISING NEARLY 18 BILLION CHRYSLER'S CONSOLIDATED DEBT STANDS AT 156 BILLION AND ITS UNFUNDED PENSION LIABILITY AT 39 BILLION WITH CONTINUED SUCCESS IN LAUNCHING NEW PRODUCTS THE COMPANY COULD REALIZE ITS STATED GOAL OF ACHIEVING INVESTMENT GRADE RATINGS BY EARLY 1995 OR EVEN SOONER S&P SAID 9302040052 930204 MONEYFUND YIELDS SLIPPED FURTHER IN LATEST WEEK BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS SLIPPED AGAIN IN THE LATEST WEEK AS INSTITUTIONAL INVESTORS PULLED OUT BILLIONS OF DOLLARS TO SEEK BETTER RETURNS ELSEWHERE THE AVERAGE SEVENDAY COMPOUND YIELD EASED TO 277 FROM 281 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST AVERAGE WHICH REFLECTS RECENT DECLINES IN SHORTTERM INTEREST RATES IS JUST BELOW THE PREVIOUS LOW OF 278 REACHED IN LATE NOVEMBER WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT PREDICTED THAT SHORTTERM INTEREST RATESAND TAXABLE MONEYFUND YIELDS WON'T CHANGE MUCH IN THE WEEKS TO COME AS THE FEDERAL RESERVE WAITS FOR RESULTS OF THE CLINTON ADMINISTRATION'S ECONOMIC STIMULUS PACKAGE ASSETS OF 563 TAXABLE FUNDS FELL BY ABOUT 84 BILLION TO 4802 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 73 BILLION OF THE OUTFLOW MR FRANK SAID MOST OF THE OUTFLOW WAS FROM A FEW INSTITUTIONAL FUNDS USED BY MARKET TIMERS REFLECTING LAST WEEK'S PICKUP IN THE STOCK MARKET AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE TREASURY BILLS AND COMMERCIAL PAPER SHORTTERM CORPORATE IOUS LENGTHENED BY A DAY TO 61 DAYS INDICATING THAT PORTFOLIO MANAGERS DON'T EXPECT SHORTTERM RATES TO RISE ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLID TO 274 FROM 277 MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD DECLINED TO 279 FROM 283 AND THE AVERAGE 30DAY COMPOUND YIELD SLIPPED TO 282 FROM 287 YIELDS ON TAXFREE MONEY FUNDS JUMPED IN THE LATEST WEEK WHICH MR FRANK SAID REFLECTS THE PREVIOUS WEEK'S DECLINE IN ASSETS THE REDUCED DEMAND FOR THE SHORTTERM MUNICIPAL SECURITIES THE FUNDS INVEST IN PUSHES PRICES DOWN AND YIELDS UP THE AVERAGE SEVENDAY COMPOUND YIELD ROSE TO 212 FROM 187 ACCORDING TO MONEY FUND REPORT THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 294 FOR AN INVESTOR IN THE 28 TAX BRACKET AND 307 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 307 TAXEXEMPT FUNDS GREW BY 668 MILLION TO JUST UNDER 101 BILLION AVERAGE MATURITY REMAINED AT 55 DAYS 9302040051 930204 BUSINESS BRIEF UPJOHN CO FOURTHPERIOD NET ROSE 13 DESPITE LOWER HALCION SALES UPJOHN CO KALAMAZOO MICH SAID FOURTHQUARTER NET INCOME ROSE 13 ON THE STRENGTH OF SEVERAL PRODUCTS DESPITE A SHARP DROP IN SALES OF HALCION ITS SLEEPING DRUG NET TOTALED 1542 MILLION OR 86 CENTS A SHARE UP FROM NET INCOME OF 1364 MILLION OR 76 CENTS A SHARE A YEAR EARLIER SALES AND OTHER REVENUE ROSE TO 9998 MILLION FROM 9202 MILLION FOR ALL OF 1992 THE DRUG COMPANY'S NET INCOME TOTALED 3243 MILLION OR 178 A SHARE DOWN 40 FROM 1991'S 5374 MILLION OR 296 A SHARE ADOPTION OF ACCOUNTING RULES FOR RETIREMENT BENEFITS REDUCED THE 1992 RESULTS BY 223 MILLION OR 126 A SHAREA NONCASH CHARGE RESTRUCTURING CHARGES REDUCED 1992 EARNINGS BY 15 MILLION OR EIGHT CENTS A SHARE FULLYEAR SALES AND OTHER REVENUE ROSE TO 367 BILLION FROM 343 BILLION 9302040050 930204 BUSINESS BRIEF IPL SYSTEMS INC DATA STORAGE MAKER TO POST 1992 EARNINGS OF 3 MILLION IPL SYSTEMS INC SAID IT EXPECTS TO POST 1992 NET INCOME OF ABOUT 3 MILLION OR 56 CENTS A SHARE INCLUDING A CHARGE OF ABOUT 1 MILLION DOWN 68 FROM NET OF 94 MILLION OR 173 A SHARE THE PREVIOUS YEAR IPL'S REVENUE FOR 1992 WAS ABOUT 53 MILLION DOWN 12 FROM 605 MILLION IN THE PREVIOUS YEAR DUE TO SLOWER THAN ANTICIPATED DEVELOPMENT OF OUR DIRECT SALES PROGRAM SAID ROBERT W NORTON IPL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN A NEWS RELEASE HE ADDED THAT PROBLEMS WITH THE DIRECT SALES PROGRAM WOULD ALSO CAUSE AN OPERATING LOSS FOR THE FOURTH QUARTER WHICH MAY BE EXCEEDED IN THE FIRST QUARTER OF 1993 MR NORTON SAID THAT THE WALTHAM MASS COMPANY WHICH MAKES DATA STORAGE DEVICES FOR COMPUTERS HAS REDUCED OPERATING COSTS TO BRING THEM IN LINE WITH THE COMPANY'S CURRENT LEVEL OF SALES 9302040049 930204 ARMED FORCE PAXTON QUIGLEY SHOWS HER WOMEN STUDENTS HOW TO SHOOT A MAN THE FORMER ANTIGUN ACTIVIST HAS NEW CAREER TEACHING THE ART OF SELFDEFENSE LAST FRONTIER OF FEMINISM' BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL GAINESVILLE GA NINETEEN WOMEN SIT IN A CIRCLE AT THE CHEROKEE GUN CLUB EACH CRADLING A REVOLVER THEY LISTEN INTENTLY AS PAXTON QUIGLEY A PETITE BLONDE IN TIGHT JEANS AND PYTHONSKIN BOOTS DESCRIBES THE BEST PLACE TO SHOOT A MAN YOU WANT TO SHOOT FOR THE LUNGS THE HEART OR THE SPINAL CORD MS QUIGLEY SAYS POINTING AT A SKETCH OF THE UPPER MALE TORSO THE CENTER OF MASS WE'RE ALSO GOING TO PRACTICE SOME HEAD SHOTS SHE ADDS I HATE TO TALK LIKE THIS BUT IF YOU SHOOT SOMEONE IN THE FACE YOU HAVE A VERY GOOD CHANCE OF STOPPING HIM MS QUIGLEY ONCE AN ANTIGUN ACTIVIST IS ON A MISSION TO ARM THE WOMEN OF AMERICA FOR A PROFIT HERS IS A UNIQUELY AMERICAN CAREER THAT DIRECTLY ADDRESSES AN ALLAMERICAN CONCERN THE INTENSIFIED FEAR OF CRIME THAT HAS DRIVEN MORE AND MORE WOMEN TO APPLY FOR GUN PERMITS IN CITIES FROM BALTIMORE TO LOS ANGELES OVER THE PAST THREE YEARS SHE HAS TAUGHT SHOOTING TO 3000 WOMEN INCLUDING GEENA DAVIS FOR THE MOVIE THELMA & LOUISE MS QUIGLEY'S GOAL SHE SAYS IS TO EMPOWER WOMEN BY SHOWING THEM HOW TO TAKE RESPONSIBILITY FOR THEIR OWN SAFETY TEACHING THEM SUCH PRACTICAL TACTICS AS HOW TO SHOOT WHILE LYING ON THEIR BACKS BY GETTING OVER THEIR FEAR OF GUNS AND KNOWING THEY CAN TAKE CARE OF THEMSELVES MS QUIGLEY SAYS THEY BECOME MORE CONFIDENT HUMAN BEINGS NOELLE STETTNER A GAINESVILLE DISK JOCKEY WHO TOOK MS QUIGLEY'S COURSE HERE SAYS IT'S THE LAST FRONTIER OF FEMINISM DAVID COLUMBIA A WRITER AND LONGTIME FRIEND OF MS QUIGLEY SAYS HER SWITCH TO GUNTOTING INSTRUCTOR AT FIRST MADE HIM MAD I FELT LIKE WHAT SHE HAD DONE WAS SIMPLY FIND A WAY TO MAKE A LIVING TELLING PEOPLE HOW TO SHOOT GUNS HE SAYS HE DOESN'T FEEL THAT WAY NOW SHE'S NOT JOAN OF ARC BUT SHE'S NOT A SNAKEOIL SALESMAN EITHER SHE JUST GETS OFF ON THE FACT THAT WOMEN LEAVE HER CLASS FEELING GOOD ABOUT THEMSELVES IN THE PROCESS SHE HAS BECOME A CELEBRITY APPEARING ON TALK SHOWS FROM COAST TO COAST SIGNING COPIES OF HER BOOK ARMED & FEMALE AND GIVING PEP TALKS TO THE FAITHFUL IN PROGUN STRONGHOLDS A MEMBER OF THE NATIONAL RIFLE ASSOCIATION AND A PAID MARKETING REPRESENTATIVE OF SMITH & WESSON CORP SHE HAS ALSO BECOME A POTENT TOOL IN THE GUN INDUSTRY'S NEWEST CAMPAIGN TO EXPAND GUN SALES BY CALLING WOMEN TO ARMS GUN MAKERS NOW PROMOTE THEIR WARES IN ADVERTISEMENTS THAT MIX FEMINIST PRIDE AND FEAR WITH HANDGUNS JUXTAPOSED AGAINST COZY BEDTIME SCENES AND FAMILY PHOTOGRAPHS AS A COLT'S MANUFACTURING CO AD PROCLAIMED IN LAST JULY'S LADIES HOME JOURNAL SELFPROTECTION IS MORE THAN YOUR RIGHT IT'S YOUR RESPONSIBILITY FOR WOMEN TERRIFIED OF VIOLENT CRIME THE MESSAGE THAT A GUN CAN PROVIDE PEACE OF MIND IS COMPELLING IN ITSELF BUT IT HAS EVEN MORE FORCE COMING FROM MS QUIGLEY WITH HER STORY OF HAVING ONCE CAMPAIGNED FOR GUN CONTROL AND LATER CHANGING SIDES AS IT HAPPENS HOWEVER NEITHER THE MESSAGE NOR HER OWN STORY IS QUITE AS STRAIGHTFORWARD AS IT MIGHT FIRST APPEAR MS QUIGLEY FROM HER BASE IN BEVERLY HILLS CALIF TEACHES BEGINNING AND ADVANCED COURSES FOR WOMEN AROUND THE COUNTRY THE DAYLONG BEGINNER'S COURSE LIKE THE ONE TAUGHT IN GEORGIA COSTS 125 MANY FIRSTTIME SHOOTERS ARE TERRIFIED MS QUIGLEY SAYS SO SHE EASES THEM TOWARD GUNS GRADUALLY SPENDING THE FIRST TWO HOURS ON BASIC SELFDEFENSE AND USING ROUSING EXERCISES TO TRY TO HELP THE WOMEN STOP SEEING THEMSELVES AS VICTIMS AT ONE POINT DURING THE GEORGIA COURSE FOR EXAMPLE SHE GIVES HER STUDENTS ADVICE ON HOW BEST TO KICK A MAN IN THE GROIN YOU HAVE TO GET IN CLOSE SHE SAYS WITH A SLY GRIN BECAUSE IT'S SUCH A SMALL AREA THE WOMEN ROAR WITH LAUGHTER THE SMILES DISAPPEAR HOWEVER WHEN MS QUIGLEY PLAYS A TAPE SUPPLIED BY THE NRA OF A 911 EMERGENCY CALL MADE BY A KANSAS CITY RAPE VICTIM AS HER ATTACKER MADE HIS WAY TOWARD HER BEDROOM HE'S HERE THE WOMAN CRIES HE'S HERE HE'S HERE THE MAN ARRIVES AT HER BEDROOM DOOR WHO ARE YOU WHY ARE YOU HERE WHY ARE YOU HERE MS QUIGLEY USES THE TAPE TO CHOREOGRAPH THE PSYCHIC TRANSITION TO GUNS OBVIOUSLY SHE TELLS THE SUDDENLY SUBDUED CLASS IF SHE'D HAD A GUN THAT WOULD HAVE HELPED THE SITUATION SHE DIDN'T FIGHT AT THAT POINT YOU DON'T ASK WHO ARE YOU WHY ARE YOU HERE SHE WAS A VICTIM A HORRIBLE VICTIM IT'S AWFUL TO SHOW BUT YOU DON'T WANT TO BE A VICTIM TO THOSE STUDENTS WHO DIDN'T BRING THEIR OWN GUNS MS QUIGLEY THEN HANDS OUT LOANERS PREMIUM SMITH & WESSON REVOLVERS SHE SPENDS THE NEXT HOUR TEACHING EVERYONE IN THE CLASS REGARDLESS OF EXPERIENCE HOW TO HANDLE A REVOLVER SAFELY THEN LEADS THE GROUP TO ONE OF THE GUN CLUB'S OUTDOOR FIRING RANGES NINETEEN PAPER TARGETS EACH THE SILHOUETTE OF A MAN'S HEAD AND TORSO AWAIT THEM MS QUIGLEY NOW WEARING A GREEN PONCHO ROSECOLORED SAFETY GLASSES AND EAR PROTECTION STRIDES ALONG THE FIRING LINE BELLOWING COMMANDS AND ENCOURAGEMENT THROUGH A BULLHORN AFTER A FEW BASIC SHOOTING EXERCISES THE WOMEN TRY A DRILL MS QUIGLEY CALLS MOZAMBIQUE TWO SHOTS TO THE BODY ONE TO THE HEAD IT'S AWFULLY FUN TO DO THIS SHE SAYS ON COMMAND THE WOMEN SHOOT THERE IS A WILD PROLONGED CRACKLE OF GUNFIRE I HOPE WE ALL GOT SOME GOOD HEAD SHOTS IN THERE MS QUIGLEY SAYS BECAUSE THAT'S WHAT'S GONNA STOP HIM A FEW WILDLY SPACED HOLES LEAD HER TO SUSPECT THAT SOME STUDENTS HAVE BEEN JERKING THE TRIGGER INSTEAD OF SQUEEZING IT SQUEEZE SMOOTHLY SHE TELLS THE CLASS THAT SLY GRIN BACK AGAIN IT'S REALLY KIND OF A SEXY MOVE I ALWAYS SAY BE SEXY ABOUT IT SQUEEEEEEZE SHE MURMURS SQUEEEEEZE OK THAT'LL KIND OF GET YOUR MIND INTO IT THE WOMEN TRY SHOOTING WHILE LYING ON THEIR BACKS THEY SHOOT WITH ONE HAND THEY SHOOT WHILE STEPPING TOWARD THE TARGET WHEN ONE WOMAN HITS THE TARGET IN THE FACE A CHEER GOES UP THERE IS EMPOWERMENT IN THE AIR FEELS GOOD DOESN'T IT MS QUIGLEY SAYS SOME FORMER STUDENTS SAY THAT TAKING MS QUIGLEY'S COURSE CAUSED AN EMOTIONAL TRANSFORMATION IT WAS LIKE A MINDSHIFT SAYS JOYCE MAYSRABBITT A MONEY MANAGER WITH OPPENHEIMER & CO IN LOS ANGELES WHO HAS TAKEN THREE COURSES IT GIVES ME THE CHOICE TO FEEL WHAT I SUPPOSE MEN FEEL MOST OF THE TIME THAT I CAN GO ANYWHERE I PLEASE MICHELE SULLIVAN OF SOUTH PASADENA CALIF HAS TAKEN FIVE OF MS QUIGLEY'S COURSES THE MOMENT MS SULLIVAN HELD A LOADED GUN FOR THE FIRST TIME SHE SAYS I WANTED TO CRY ONCE SHE FIRED THE GUN HOWEVER HER FEAR DISAPPEARED MS QUIGLEY SHE SAYS HELPS WOMEN SHED THE CULTURAL CONDITIONING THAT MAKES THEM SEE THEMSELVES AS VULNERABLE IF WE'RE CONFRONTED WE STEP BACK AND PLEAD FOR MERCY WHAT PAXTON INSTILLS IS THAT YOU STEP FORWARD AND YOU CHALLENGE THE INDIVIDUAL'S RIGHT TO CONFRONT YOU MS STETTNER THE DISK JOCKEY SAYS THAT SINCE THE COURSE SHE HAS HAD VIVID DREAMS OF SHOOTING AN ASSAILANT DEAD IN HER BEDROOM AND WHEN I WOKE UP SHE SAYS I FELT GOOD ABOUT IT SHE NOW HOLDS A CONCEALED WEAPONS PERMIT AND CARRIES A 38 REVOLVER MANY WOMEN SAY THEY WERE DRAWN TO MS QUIGLEY PRECISELY BECAUSE SHE WAS ONCE ANTIGUN IT IS HER PRIMARY SELLING POINT AND SHE TELLS THE STORY OF HER CONVERSION AT THE START OF EACH CLASS HOW SHE WAS DEEPLY INVOLVED IN THE GUNCONTROL MOVEMENT OF 1968 HER AGE TODAY SHE SAYS IS FORTYSOMETHING AND REMAINED OPPOSED TO GUNS UNTIL THE RAPE OF A FRIEND IN 1986 SHE SET OUT THEN TO WRITE A BOOK ABOUT RAPE AT ONE POINT VENTURING INTO SAN QUENTIN TO INTERVIEW 11 HARDCORE RAPISTS AN ESPECIALLY DRAMATIC IMAGE GIVEN HER TINY STATURE THE RAPISTS TOLD HER IF THEIR VICTIMS HAD BEEN ARMED THEY'D HAVE CHOSEN OTHER TARGETS MS QUIGLEY CHANGED THE FOCUS OF HER BOOK AND EMBARKED ON AN APPARENTLY SOLO JOURNEY TO BECOME AN EXPERT IN SHOOTING AND SELFDEFENSE HER BOOK WHICH NOW IS IN PAPERBACK AND CITED OFTEN IN THE GUN PRESS LEAVES THE IMPRESSION THAT MS QUIGLEY VIRTUALLY FOUNDED THE GUNCONTROL MOVEMENT OF 1968 THAT SHAPED MUCH OF TODAY'S FEDERAL FIREARMS LAW SHE WORKED FOR ROBERT KENNEDY'S PRESIDENTIAL CAMPAIGN AFTER HIS ASSASSINATION SHE WRITES I ALONG WITH OTHER STAFF MEMBERS AND ASTRONAUT JOHN GLENN FOUNDED THE FIRST ANTIGUN POLITICAL ACTION COMMITTEE THE NATIONAL COMMITTEE FOR HANDGUN CONTROL WHICH CONTRIBUTED SIGNIFICANTLY TO THE FIRST FEDERAL LAW POLICY ON HANDGUNS KNOWN AS THE HANDGUN CONTROL ACT OF 1968 THERE IS A GOOD DEAL OF MARKETING SPIN IN THAT ACCOUNT HOWEVER SENIOR ORGANIZERS OF THE GLENN COMMITTEE SIMPLY DON'T REMEMBER MS QUIGLEY THEY ALSO NOTE THE ORGANIZATION'S CORRECT NAME WAS THE EMERGENCY COMMITTEE FOR GUN CONTROL ANNE PALLIE THE COMMITTEE'S ADMINISTRATOR AND NOW A WASHINGTON BUSINESSWOMAN DOES REMEMBER HER BUT AS A YOUNG MOTHER AND OCCASIONAL VOLUNTEER WHO WENT BY THE NAME JUDY CARNOY IT'S A TYPICAL CASE OF SOMEONE WHO WAS A GLORIFIED GOFER SAYING SHE WAS IN THE HIERARCHY MS PALLIE SAYS IT'S A LITTLE BIT LIKE THE PARALEGAL IN A LAW FIRM SAYING I WON THAT SUPREME COURT CASE WHEN ASKED ABOUT CHANGING HER NAME MS QUIGLEY PAUSES YOU'VE FOUND MY LITTLE SECRET SHE SAYS BUT SHE DID TAKE THE NAME SOME OF HER CLOSEST FRIENDS SHE SAYS DON'T KNOW IT IS AN INVENTION SHE WON ROLES IN COMMERCIALS PLAYS AND ONE MOVIE WC FIELDS AND ME BUT GREW FRUSTRATED WITH THE PACE OF HER CAREER SHE BEGAN WRITING MAGAZINE ARTICLES AND SOON FOUND HERSELF EDITOR OF VALLEY MAGAZINE IN THE SAN FERNANDO VALLEY OUTSIDE LOS ANGELES WHEN THE MAGAZINE FOLDED SHE TOOK A JOB AS WEST COAST REPRESENTATIVE FOR THE PLAYBOY FOUNDATION WHICH CONTRIBUTED MONEY TO GROUPS PROMOTING LIBERAL CAUSES INCLUDING ORGANIZATIONS THAT SUPPORTED ABORTION RIGHTS AND THE EQUAL RIGHTS AMENDMENT SHE LATER BECAME DIRECTOR OF COMMUNITY RELATIONS FOR PLAYBOY ENTERPRISES HER CHOICE OF EMPLOYER SURPRISED ANNE PALLIE THE JUDY CARNOY SHE HAD KNOWN WAS AN OUTSPOKEN FEMINIST HOW MS PALLIE ASKS NOW DOES AN AVOWED FEMINIST WORK FOR PLAYBOY AND HOW DOES AN AVOWED ANTIGUN ACTIVIST BECOME A PROGUN EVANGELIST THE CHANGE WAS MORE CAREFULLY ORCHESTRATED THAN MS QUIGLEY LEADS HER CLASSES TO BELIEVE JEFFREY MANNIX AN AUTHOR AND RANCHER IN DURANGO COLO AND HER ONETIME LOVER SAYS HE WASN'T AWARE OF THE 1986 RAPE THAT MS QUIGLEY DESCRIBES AS BEING SO PIVOTAL TO HER RATHER HE SAYS THE TRANSFORMATION BEGAN WHEN HE BROUGHT MS QUIGLEY WITH HIM TO A GUN STORE TO PICK UP TWO RIFLES HE HAD HAD REPAIRED THERE MS QUIGLEY WHO CONFIRMS HER PAST ROMANTIC INVOLVEMENT WITH MR MANNIX RECALLS THE VISIT AT ONE POINT SHE CONFIDED TO THE STORE CLERK THAT SHE HAD BEGUN TO FEEL AFRAID ON IMPULSE SHE ASKED HIM WHAT KIND OF GUN SHE OUGHT TO OWN SHE WAS SHOCKED AT HER OWN QUESTION SHE SAYS AND RECALLS THINKING IF I'M FEELING THIS WAY THERE MUST BE OTHER WOMEN WHO FEEL THIS WAY SHE THOUGHT THE IDEA OF WOMEN ARMING THEMSELVES MIGHT MAKE A GOOD MAGAZINE STORY MR MANNIX THE AUTHOR OF THREE SELFHELP BOOKS INCLUDING A 1971 DIET BOOK CALLED THE MANNIX METHOD TOLD HER IT OUGHT TO BE A BOOK AT THE START OF HER CLASS MS QUIGLEY LEAVES THE IMPRESSION THAT SHE WROTE THE BOOK ALONE AND LIKEWISE VENTURED INTO SAN QUENTIN TO INTERVIEW THE 11 RAPISTS ALL BY HERSELF MR MANNIX HOWEVER SAYS HE WAS HER COAUTHOR AND SHARED HER REPORTING ODYSSEY THEY INTERVIEWED THE PRISON RAPISTS TOGETHER AN EXPERIENCE MR MANNIX CALLS ONE OF THE MOST MEMORABLE THINGS I'VE EVER DONE HIS ROLE IN THE BOOK HOWEVER REMAINS A WELLKEPT SECRET IT JUST DIDN'T HAVE ANY PLACE IN IT FOR A MAN HE SAYS MS QUIGLEY CONFIRMS THAT MR MANNIX ACCOMPANIED HER TO THE MANY SHOOTING COURSES SHE TOOK PARTICIPATED IN THE PRISON INTERVIEWS AND HELPED WRITE THE MORE TECHNICAL PORTIONS OF THE BOOK BUT SHE ADDS HE WAS IN NO WAY A COAUTHOR THE BOOK DOESN'T MENTION THE 1986 RAPE OF MS QUIGLEY'S FRIEND IT WAS A REAL HEAVY EMOTIONAL THING THAT I JUST KIND OF KEPT IN THE BACK OF MY MIND SHE SAYS IT WAS AWFUL TO ME I SAW HER AN HOUR AFTER IT HAPPENED BESIDES SHE SAYS THE FRIEND SWORE HER TO SECRECY THE RAPE HAS BECOME AN ASSET FOR MS QUIGLEY HOWEVER IT OBVIOUSLY PLAYS WELL FOR ME TO TALK ABOUT MY FRIEND WHO WAS RAPED SHE SAYS EXPLAINING WHY SHE DESCRIBES IT IN HER CLASS THERE IS GOOD CAUSE FOR WOMEN TO BE FEARFUL POLICE AND PUBLIC HEALTH RESEARCHERS SAY NOT SO MUCH OF ATTACKERS AS OF GUNS THEMSELVES THEY WORRY THAT MS QUIGLEY AND GUN MANUFACTURERS PLAY DOWN THE DANGERS OF KEEPING A GUN FOR SELFDEFENSE A PIONEERING STUDY OF RESIDENTIAL GUNSHOT DEATHS IN KING COUNTY WASHINGTON FOUND THAT A GUN IN THE HOME WAS 43 TIMES MORE LIKELY TO BE USED TO KILL ITS OWNER SPOUSE A FRIEND OR CHILD THAN TO KILL AN INTRUDER STUDIES BY THE WESTERN PSYCHIATRIC INSTITUTE IN PITTSBURGH FOUND THAT THE MERE PRESENCE OF A GUN IN THE HOME SHARPLY INCREASES THE LIKELIHOOD A FAMILY MEMBER WILL COMMIT SUICIDE EVEN IN THE ABSENCE OF PSYCHIATRIC ILLNESS THE FEMINIST CAST TO GUN MARKETING ESPECIALLY RANKLES THE INDUSTRY'S CRITICS NOW WE'RE SEEING THE SAME THING WE SAW WITH PROMOTING CIGARETTES SAYS GAREN WINTEMUTE A RESEARCHER WITH THE UNIVERSITY OF CALIFORNIA AT DAVIS AN INHERENTLY HAZARDOUS PRODUCT IS BEING ASSOCIATED WITH IMAGES OF EQUALITY FOR WOMEN OF LIBERATION FOR WOMEN OF INDEPENDENCE FOR WOMEN WITH THE ADDED APPROACH OF USING FEAR WHICH YOU CAN'T USE TO SELL CIGARETTES BUT YOU CAN CERTAINLY USE TO SELL GUNS DR WINTEMUTE ADDS THESE CONCERNS CARRY LITTLE WEIGHT HOWEVER WITH WOMEN WHO SEE CRIME ENCROACHING FROM ALL SIDES THE WORLD IS GOING SLOWLY CRAZY SAYS LINDA LOVEJOY AN ATLANTA TAX ACCOUNTANT WHO TOOK THE GEORGIA COURSE IT DOESN'T TAKE LONG TO FIGURE OUT THAT THERE AREN'T ALWAYS GOING TO BE OTHER PEOPLE AROUND TO PROTECT YOU BEFORE THE COURSE SHE HAD NEVER SHOT A GUN AND YET HER HUSBAND OWNED MANY GUNS HE KEPT ONE LOADED BY THE BEDSIDE IT WAS TIME SHE REASONED TO LEARN HOW TO USE THOSE GUNS AND TAKE RESPONSIBILITY FOR HER OWN SAFETY GIRLS GROW UP BELIEVING THAT THEY'RE GOING TO BE TAKEN CARE OF SHE SAYS BUT IT JUST AIN'T SO 9302040048 930204 BUSINESS BRIEF CONVEX COMPUTER CORP COMPANY REPORTS A PROFIT OF 851000 IN FOURTH PERIOD CONVEX COMPUTER CORP STILL WRESTLING WITH A WEAK SUPERCOMPUTER MARKET EKED OUT A FOURTHQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS ALTHOUGH THE RESULTS WERE STILL BELOW ANALYSTS' EXPECTATIONS THE COMPANY REPORTED A PROFIT OF 851000 OR THREE CENTS A SHARE IN THE QUARTER COMPARED WITH A LOSS OF 937000 OR FOUR CENTS A SHARE CONVEX BASED IN RICHARDSON TEXAS SAID IT SHIPPED 41 SUPERCOMPUTER SYSTEMS IN THE FOURTH QUARTER OF 1992 AND POSTED REVENUE OF 619 MILLION A RECORD FOR ANY QUARTER AND A 20 JUMP FROM 517 MILLION IN THE YEAREARLIER PERIOD THE COMPANY ALSO NOTED A PICKUP IN ORDERS FOR ITS HIGHEND C3800 GALLIUM ARSENIDEBASED MACHINE AND SAID EUROPE HAD ACCOUNTED FOR ABOUT HALF OF THE REVENUE IN THE QUARTER BUT MARGINS WERE WEAK AMID THE COMPETITIVE PRICING ENVIRONMENT OF SUPERCOMPUTERS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CONVEX SHARES WERE QUOTED AT 7 DOWN 125 CENTS FOR THE YEAR CONVEX EARNED 28 MILLION OR 11 CENTS A SHARE ON REVENUE OF 2318 MILLION IN 1991 CONVEX HAD A LOSS OF 69 MILLION OR 31 CENTS A SHARE ON REVENUE OF 1981 MILLION 9302040047 930204 BETHLEHEM RAISING STEEL PRICES BETHLEHEM PA BETHLEHEM STEEL CORP SAID IT WILL RAISE PRICES ON STEEL PLATE BY 2 TO 4 EFFECTIVE APRIL 4 CARBON STEEL PLATES AND HIGHSTRENGTH LOWALLOY PLATES WILL BE INCREASED 10 A TON RESULTING IN A NEW BASE PRICE OF 505 A TON FOR SHEARED MILL PLATES STRIP MILL PLATE PRICES WILL RISE 20 A TON TO 527 A TON THE INCREASES FOLLOWS RECENTLY ANNOUNCED PRICE BOOSTS OF 4 TO 5 BY MOST OTHER STEELMAKERS SEPARATELY OHIOWCI STEEL INC SAID IT WILL RAISE PRICES ON HOT AND COLD ROLLED SHEET STEEL AND NICKLE/TERN BY 20 A TON ALSO ON APRIL 4 9302040046 930204 BUSINESS BRIEF SHARPER IMAGE CORP RETAILER EXPECTS TO REPORT PROFIT FOR QUARTER AND YEAR SHARPER IMAGE CORP EXPECTS TO REPORT FISCAL FOURTHQUARTER EARNINGS OF AROUND 44 MILLION OR ABOUT 50 CENTS A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 41 MILLION OR 50 CENTS A SHARE WITH LOSSES OF NEARLY 4 MILLION OR 48 CENTS A SHARE THROUGH THE FIRST NINE MONTHS AND ANTICIPATED EARNINGS OF 50 CENTS IN THE FINAL QUARTER ENDED JAN 31 SHARPER IMAGE SEEMS POISED TO RECORD A PROFIT FOR THE YEAR THE COMPANY REPORTED A NET LOSS OF 3 MILLION OR 41 CENTS A SHARE A YEAR AGO SHARPER IMAGE HASN'T POSTED A YEAREND PROFIT SINCE THE YEAR ENDED JAN 31 1990 FOR THE QUARTER THE SAN FRANCISCO RETAILER EXPECTS TO REPORT SALES ROSE 13 TO 574 MILLION FROM 567 MILLION A YEAREARLIER FULLYEAR SALES ARE EXPECTED TO BE 1484 MILLION UP 51 FROM 1411 MILLION 9302040045 930204 AT&T'S KAHN QUITS AS CHIEF OF CARD UNIT BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL PAUL G KAHN THE CHIEF ARCHITECT OF AMERICAN TELEPHONE & TELEGRAPH CO'S HIGHLY SUCCESSFUL FORAY INTO THE CREDITCARD BUSINESS IS LEAVING THE COMPANY OVER A DIFFERENCE IN STRATEGY THE RESIGNATION EFFECTIVELY ENDS EFFORTS BY MR KAHN TO EXPAND AT&T'S CARD BUSINESS INTO OTHER FINANCIAL PRODUCTS A STRATEGY THAT THE COMPANY OPPOSED THE RESIGNATION OF THE 48YEAROLD MR KAHN AS CHIEF EXECUTIVE OFFICER OF AT&T UNIVERSAL CARD SERVICES STUNNED THE CREDITCARD INDUSTRY PARTICULARLY AS THE CARD SUBSIDIARY HAD RECENTLY WON THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD NO SUCCESSOR WAS NAMED ANALYSTS VOICED SUPPORT FOR AT&T NOTING THAT THE COMPANY HAD ALWAYS VIEWED THE CREDIT CARD AS A WAY TO BOLSTER ITS LONGDISTANCE CALLING BUSINESS RATHER THAN AS A STANDALONE PRODUCT TO COMPETE AGAINST BANKS THE COMPANY RESISTED THE TEMPTATION TO DIVERSIFY AWAY FROM ITS CORE COMMUNICATIONS BUSINESS WHICH IS TERRIFIC SAID GREGORY SAWERS AN ANALYST AT SANFORD C BERNSTEIN & CO MEANWHILE THE ABORTED ATTEMPT TO EXPAND THE CARD SUBSIDIARY SHOULD PROVIDE SOME RELIEF FOR THE BANKING INDUSTRY WHICH HAD BEEN CONCERNED WITH NONBANKING COMPANIES EXPANDING INTO ITS TURF ARMED WITH A HUGE MARKETING BUDGET AT&T HAD ALREADY MADE SIGNIFICANT INROADS INTO THE CARD BUSINESS AND COULD HAVE DONE SO WITH OTHER BANKING PRODUCTS UNDER MR KAHN'S DIRECTION THE CARD UNIT GREW IN JUST TWO YEARS TO BECOME THE SECONDLARGEST ISSUER BEHIND CITICORP OF BANK CREDIT CARDS IN THE US AT&T'S MOVE INTO THE CARD BUSINESS IN 1990 SHOOK UP THAT INDUSTRY BY PROMISING NO ANNUAL FEE FOR LIFE THE INNOVATIVE OFFER PLUS A LOWER INTEREST RATE SET OFF A PRICE WAR THE REPERCUSSIONS OF WHICH ARE STILL BEING FELT AT&T'S ANNOUNCEMENT OF MR KAHN'S RESIGNATION WHICH TAKES EFFECT MAY 15 WAS UNUSUALLY TERSE THE ONLY OFFICIAL COMMENT CAME FROM HIS IMMEDIATE BOSS ROBERT J RANALLI CONSUMER SERVICES PRESIDENT WHO COMPLIMENTED MR KAHN'S SUCCESS AS A TOUGH ACT TO FOLLOW THERE WAS NO COMMENT FROM AT&T CHAIRMAN ROBERT E ALLEN NOT CONTENT WITH RUNNING JUST A CARD BUSINESS MR KAHN HAD BEEN LOOKING TO EXPAND INTO OTHER FINANCIAL PRODUCTS LAST FALL MR KAHN SAID HE WAS MULLING A MOVE INTO BANKING AND INVESTMENT PRODUCTS SUCH AS CERTIFICATES OF DEPOSIT AND MUTUAL FUNDS EARLIER LAST YEAR MR KAHN OBTAINED THE WEAPON TO DO SO PURCHASING A LITTLEKNOWN INDUSTRIAL LOAN COMPANY IN UTAH THAT GAVE AT&T BANKLIKE POWERS TO OFFER VARIOUS FINANCIAL PRODUCTS MR KAHN SAID ONE REASON FOR HIS DECISION TO LEAVE WAS A STRATEGIC DIFFERENCE BETWEEN HIM AND THE COMPANY ON THAT POINT I HAD WANTED TO PUSH FASTER INTO DIVERSIFYING THE BUSINESS MR KAHN SAID THEY WEREN'T WILLING TO GO INTO IT AT THE SAME PACE WHILE HE DIDN'T RULE OUT THE POSSIBILITY OF JOINING ANOTHER CREDITCARD COMPANY MR KAHN SAID HE IS PRIMARILY INTERESTED IN STARTING HIS OWN VENTURE CAPITAL COMPANY AND HAS BEEN TALKING WITH POSSIBLE INVESTORS AFTER COMPLETING TWO TURNAROUNDS AT OTHER COMPANIES IN THE PAST 10 YEARS NOT TO MENTION LEADING THIS STARTUP AT AT&T IT'S TIME TO DO THIS AGAIN FOR MY OWN PORTFOLIO MR KAHN SAID BEFORE AT&T HE HAD REVAMPED AND EXPANDED THE CREDITCARD BUSINESSES AT MELLON BANK AND FIRST CHICAGO CORP JOHN J KELLER CONTRIBUTED TO THIS ARTICLE 9302040044 930204 BUSINESS BRIEF WOODWARD'S LTD RETAILER PLANS TO SHUT DOWN WOODWYNN DISCOUNT CHAIN RETAILER RETAILER WOODWARD'S LTD SAID IT WILL SHUT DOWN ITS WOODWYNN DISCOUNT CHAIN AND LIQUIDATE 30 OF THE CHAIN'S 33 STORES AS PART OF A COMPANYWIDE RESTRUCTURING THE VANCOUVER BRITISH COLUMBIA COMPANY WHICH HAS OPERATED UNDER BANKRUPTCYCOURT PROTECTION SINCE MIDDECEMBER SAID THE CLOSURES WILL RESULT IN THE ELIMINATION OF 300 JOBS ONLY 32 OF WHICH ARE FULLTIME IT SAID THREE VANCOUVERAREA WOODWYNN LOCATIONS WILL REMAIN OPEN AS LIQUIDATION CENTERS FOR UNSOLD MERCHANDISE FROM THE CLOSING WOODWYNN STORES IT SAID NO LONGTERM DECISIONS HAVE BEEN MADE ON THE FUTURE OF THESE LOCATIONS MARC CHOUINARD PRESIDENT OF WOODWARD'S SAID THE COMPANY HAS SOUGHT A BUYER FOR THE WOODWYNN CHAIN FOR QUITE SOME TIME BUT TO DATE WE HAVE NOT RECEIVED ANY SERIOUS OFFERS THE COMPANY SAID IT PLANS TO BEGIN THE LIQUIDATION IN THE NEXT TWO WEEKS AND HOPES FOR IT TO BE COMPLETED WITHIN EIGHT WEEKS THE UNPROFITABLE WOODWYNN CHAIN WHICH OPERATES IN BRITISH COLUMBIA AND ALBERTA SPECIALIZES IN DISCOUNT FAMILY APPAREL AND HOUSEHOLD ITEMS THE COMPANY DIDN'T SAY IN A STATEMENT WHAT IF ANY COSTS IT MIGHT INCUR AS A RESULT OF THE CLOSURE AND LIQUIDATION OFFICIALS OF WOODWARD'S COULDN'T BE REACHED FOR COMMENT 9302040043 930204 BUSINESS BRIEF HAWAIIAN ELECTRIC INDUSTRIES INC HURRICANE'S EFFECTS RESULT IN LOSS DURING 4TH QUARTER HAWAIIAN ELECTRIC INDUSTRIES INC STILL SUFFERING THE FINANCIAL EFFECTS OF HURRICANE INIKI POSTED A FOURTHQUARTER NET LOSS OF 44 MILLION OR 18 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 14 MILLION OR 59 CENTS A SHARE THE LATEST PERIOD INCLUDES A 17 MILLION LOSS FROM THE HONOLULU COMPANY'S INSOLVENT INSURANCE BUSINESS WHICH HAWAIIAN ELECTRIC TURNED OVER TO THE STATE'S INSURANCE DEPARTMENT IN DECEMBER COMBINED WITH EARLIER WRITEOFFS IN THE THIRD QUARTER HAWAIIAN ELECTRIC'S LOSS FROM THE DISCONTINUED HAWAIIAN INSURANCE GROUP OPERATIONS TOTALED 597 MILLION OR 246 A SHARE HAWAIIAN ELECTRIC DECIDED TO ABANDON THE INSURANCE BUSINESS AS CLAIMS AFTER THE HURRICANE JUMPED TO 300 MILLION FROM EARLIER ESTIMATES OF 200 MILLION FOR ALL 1992 THE COMPANY HAD A NET LOSS OF 116 MILLION OR 48 CENTS A SHARE COMPARED WITH 1991 NET INCOME OF 548 MILLION OR 240 A SHARE REVENUE ROSE 38 TO 103 BILLION FROM 9932 MILLION SEPARATELY HAWAIIAN ELECTRIC SAID ITS UTILITY SUBSIDIARY THAT SERVES THE ISLANDS OF MAUI MOLOKAI AND LANAI HAD RECEIVED AN INTERIM DECISION FROM THE HAWAII PUBLIC UTILITIES COMMISSION AUTHORIZING A 24 INCREASE IN ANNUAL REVENUE OR 28 MILLION OUT OF A REQUESTED 29 MILLION 9302040042 930204 INTERNATIONAL BRIEF BRITISH AIRWAYS PASSENGER TRAFFIC GREW 11 IN JANUARY UK CARRIER SAYS BRITISH AIRWAYS SAID PASSENGER TRAFFIC WAS UP 11 IN JANUARY FROM A YEAR EARLIER BUT THAT BUSINESS AND FIRSTCLASS TRAFFIC REMAINED DEPRESSED THE UK CARRIER SAID THE JANUARY RISE TO 580 BILLION PASSENGERREVENUE KILOMETERS FROM 524 BILLION WAS ACCOMPANIED BY A 12 RISE IN AVAILABLE SEAT KILOMETERS TO 883 BILLION FROM 787 BILLION PASSENGER LOAD FACTOR EDGED DOWN TO 657 FROM 665 A PASSENGERREVENUE KILOMETER IS ONE PAYING PASSENGER FLOWN ONE KILOMETER BRITISH AIRWAYS SPECIFIED THAT THE LATEST FIGURES WERE BOOSTED BY THE RECENT ACQUISITION OF DANAIR A BRITISH REGIONAL CARRIER THAT HAS 15 DESTINATIONS EXCLUDING THIS EXPANSION MOVE THE UNDERLYING RISE IN PASSENGERREVENUE KILOMETERS WAS 94 AND THE DECLINE IN ITS PASSENGER LOAD FACTOR WAS ONLY 03 POINT PASSENGER REVENUE KILOMETERS FOR THE FIRST 10 MONTHS OF THE CARRIER'S FINANCIAL YEAR GAINED 13 TO 6282 BILLION AVAILABLE SEAT KILOMETERS WERE UP 12 AT 8772 BILLION WHILE THE GROUP'S PASSENGER LOAD FACTOR WAS UP 08 POINT AT 716 9302040041 930204 BREAST IMPLANTS RAISE MORE SAFETY ISSUES SALINE IMPLANTS APPEAR TO CARRY HAZARDS AS WELL BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION'S PARTIAL BAN ON SILICONEGEL BREAST IMPLANTS HAS SHARPLY CURTAILED WOMEN'S CHOICES BUT IT HASN'T CLEARED UP QUESTIONS ABOUT SAFETY ONLY ONE COMPANY MENTOR CORP STILL MAKES SILICONEGEL IMPLANTS AND ONLY WOMEN WHO QUALIFY FOR LIMITED FDAAPPROVED CLINICAL TRIALS CAN GET THEM THAT LEAVES WOMEN WHO WANT IMPLANTS FOR COSMETIC REASONS WITH ONLY ONE OPTION SALINE IMPLANTS BUT EVEN THOSE IMPLANTS MAY NOT BE SAFE RESEARCHERS SUSPECT THAT THE HARD SILICONE SHELLS CONTAINING THE SALINE CAN CAUSE HARDENED BREASTS IMMUNE DISORDERS AND OTHER SYMPTOMS THAT HAVE BEEN ASSOCIATED WITH SILICONE GEL OTHER DANGERS HAVE BEEN DOCUMENTED IN A PAPER PUBLISHED IN 1983 IN THE JOURNAL OF PLASTIC AND RECONSTRUCTIVE SURGERY RESEARCHERS CONCLUDED THAT IN RARE CASES THE SALINE CAN BECOME CONTAMINATED AND GROW HARMFUL BACTERIA LAST OCTOBER THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION PUBLISHED A PAPER CONCLUDING THAT THE PRESENCE OF ANY IMPLANT SILICONE OR SALINE IMPEDES MAMMOGRAPHY THE DEVICES REDUCE THE AREA A DOCTOR CAN SEE BY 30 TO 50 ACCORDING TO THE PAPER THE FDA WILL BEGIN A REVIEW OF SALINE IMPLANTS LATER THIS YEAR MOST WOMEN AREN'T AWARE OF THE NEW CONCERNS ABOUT SALINE IMPLANTS BUT THEY SEEM TO BE AVOIDING THEM ANYWAY BECAUSE OF CONCERNS ABOUT SILICONEGEL IMPLANTS IN 1990 THE LAST FULL YEAR BEFORE THE BAN 120000 WOMEN RECEIVED BREAST IMPLANTS FOR COSMETIC REASONS SINCE THEN DEMAND HAS DROPPED PRECIPITOUSLY SAYS NEAL HANDEL A PLASTIC SURGEON AT THE BREAST CENTER VAN NUYS CALIF DR HANDEL ESTIMATES THAT HIS CENTER WHICH SPECIALIZES IN BREAST CANCER PATIENTS WILL HAVE FEWER THAN 15 COSMETIC PATIENTS THIS YEAR DOWN FROM 80 LAST YEAR WOMEN HAVE LOST THEIR APPETITE FOR THIS BECAUSE OF ALL THE NEGATIVE MEDIA PUBLICITY AND CONCERNS ABOUT SAFETY DR HANDEL SAYS PRICE MAY BE PART OF THE ISSUE ONLY TWO COMPANIES MAKE SALINE IMPLANTS MENTOR AND MCGHAN MEDICAL CORP A UNIT OF INAMED CORP AND IMPLANT PRICES HAVE MORE THAN DOUBLED SINCE OCTOBER 1991 TO 500 TO 600 EACH MENTOR DECLINED TO COMMENT AND INAMED DECLINED TO RETURN REPEATED PHONE CALLS BUT DOCTORS SAY THE COMPANIES WILL NEED THE MONEY TO PAY FOR RESEARCH WHAT DO YOU EXPECT THEY'RE TAKING A TREMENDOUS RISK BY KEEPING THEIR SHOPS OPEN SAYS G GREGORY GALLICO III AN ASSOCIATE PROFESSOR OF SURGERY AT HARVARD UNIVERSITY CONFLICTING INFORMATION ON WHAT'S SAFE HAS CONFUSED EVEN THE SAVVIEST CONSUMERS CONSIDER KAREN KOSKOFF A BREAST CANCER PATIENT AND A MEMBER OF THE BREAST IMPLANT LITIGATION COMMITTEE OF THE AMERICAN TRIAL LAWYERS ASSOCIATION AFTER A DOUBLE MASTECTOMY THREE YEARS AGO SHE GOT SILICONE IMPLANTS BECAUSE HER DOCTOR TOLD HER THEY WERE SAFE SHE SAYS WHEN CRITICS RAISED CONCERNS ABOUT THE DEVICES MS KOSKOFF DID HER OWN RESEARCH AND DECIDED TO SWITCH TO SALINE IMPLANTS THEN TWO MONTHS LATER SHE FOUND OUT THAT RESEARCHERS HAVE SERIOUS CONCERNS ABOUT THOSE IMPLANTS TOO SHE LEARNED OF THE CONCERNS AT A TRIAL LAWYERS ASSOCIATION MEETING SHE WAS MODERATING IN JANUARY 1992 ONE SPEAKER WAS WARNING THE AUDIENCE THAT IF A CLIENT WITH SALINE IMPLANTS COMPLAINS OF PROBLEMS GENERALLY ASSOCIATED WITH SILICONE GEL DON'T ASSUME SHE'S LYING ASSUME SHE'S VERY ILL MS KOSKOFF RECALLS AS THE SPEAKER LISTED POTENTIAL SAFETY PROBLEMS WITH THE IMPLANTS I SAT IN FRONT OF THE MEETING WITH A LARGE NUMBER OF LAWYERS AND TRIED NOT TO CRY MS KOSKOFF SAYS IT WAS AWFUL EVEN WORSE IS THE DECISION MS KOSKOFF FACES NOW SHE IS DETERMINED TO HAVE HER SALINE IMPLANTS REMOVED BUT AFTER A DOUBLE MASTECTOMY GETTING IMPLANTS AND THEN REPLACING THEM I'M TIRED OF GETTING CUT UP SHE SAYS SHE WILL PROBABLY SCHEDULE SURGERY FOR LATER THIS YEAR SOME WOMEN ARE JOINING STUDIES TO GET SILICONEGEL IMPLANTS THE STUDIES ADMIT WOMEN WHO WANT TO REBUILD THEIR BREASTS FOLLOWING SURGERY FOR BREAST CANCER AND WOMEN WHO WANT TO REPLACE IMPLANTS THAT HAVE BROKEN OR LEAKED INSIDE THEIR BODIES BUT THE BIGGEST CONSUMERS OF SILICONE IMPLANTS WOMEN WHO WANT THEM FOR STRICTLY COSMETIC REASONS CAN'T GET THEM YET STUDIES FOR THAT GROUP WHICH WILL HAVE LIMITED ENROLLMENT WON'T START ACCEPTING PATIENTS UNTIL THE FALL EVEN THEN IT WON'T BE EASY TO GET IN YOUNG WOMEN ONCE A TARGET MARKET FOR IMPLANT MANUFACTURERS WILL PROBABLY BE TURNED AWAY BECAUSE THE STUDIES REQUIRE FREQUENT DIAGNOSTIC MAMMOGRAPHY A PROCEDURE NOT RECOMMENDED FOR WOMEN UNDER AGE 35 MOREOVER BEING IN A STUDY IS NO PICNIC PARTICIPANTS MUST FILL OUT DETAILED QUESTIONNAIRES AND AGREE TO CHECKUPS AND LABORATORY TESTS FOR SEVERAL YEARS FOLLOWING SURGERY THIS IS NOT BUSINESS AS USUAL SAYS CAROL SCHEMAN THE FDA'S DEPUTY COMMISSIONER FOR EXTERNAL AFFAIRS SUSAN LEIGH A TUCSON ARIZ ONCOLOGY NURSE AND BREAST CANCER PATIENT SAYS SHE AGONIZED MORE OVER WHAT KIND OF IMPLANTS TO GET THAN SHE DID OVER HER MASTECTOMIES IT WAS A TREMENDOUS CONFLICT FOR ME SHE SAYS LAST AUGUST AFTER SEVERAL MONTHS OF RESEARCH AND INTERVIEWS WITH WOMEN WITH BOTH TYPES OF IMPLANTS SHE ASKED HER SURGEON TO INSERT SALINE IMPLANTS BUT HE BALKED URGING HER TO JOIN A STUDY TO GET SILICONE IMPLANTS INSTEAD MY PLASTIC SURGEON WAS ACTUALLY ANTAGONISTIC TO ME BECAUSE I EVEN QUESTIONED THE IDEA OF SILICONE IMPLANTS MS LEIGH SAYS UNSURE OF WHAT TO DO SHE TOLD THE SURGEON THAT SHE NEEDED FOUR MORE MONTHS TO DECIDE LAST MONTH SHE GOT ANOTHER DOCTOR TO INSERT SALINE IMPLANTS SEE RELATED ARTICLE HEALTH RESEARCH LINKS SILICONE VERSION TO NEW DISEASES WSJ FEB 4 1993 9302040040 930204 BUSINESS BRIEF AETNA LIFE & CASUALTY CO FIRM PLANS TO STOP WRITING AUTO POLICIES IN CALIFORNIA AETNA LIFE & CASUALTY CO SAID IT WILL DROP OUT OF THE CALIFORNIA AUTO INSURANCE MARKET BECAUSE IT CAN'T MAKE ENOUGH MONEY IN IT AETNA BASED IN HARTFORD CONN SAID IT WOULD STOP WRITING PERSONAL AUTO INSURANCE BECAUSE WE LACK THE ABILITY TO EARN AN ADEQUATE RETURN OVER TIME THE FIRM'S AVERAGE RETURN ON EQUITY IN CALIFORNIA OVER THE LAST FIVE YEARS WAS 4 A SPOKESMAN SAID HE SAID THE DECISION TO WITHDRAW WASN'T SPECIFICALLY RELATED TO THE 1988 VOTER INITIATIVE IN CALIFORNIA WHICH SOUGHT TO LIMIT AUTO INSURANCE RATE INCREASES AETNA WHICH REMAINS A MAJOR PLAYER IN OTHER CALIFORNIA INSURANCE MARKETS HAS ONLY ABOUT 30000 CUSTOMERS OR LESS THAN 1 OF THE STATE'S AUTO INSURANCE BUSINESS WITHDRAWING FROM THE PERSONAL AUTO INSURANCE BUSINESS IS A STRATEGY WE'VE EMPLOYED AROUND THE NATION IN STATES WHERE THE COMPANY FEELS IT CAN'T MAKE A REASONABLE RETURN THE SPOKESMAN SAID AETNA HAS CEASED WRITING PERSONAL AUTO INSURANCE IN 27 STATES IT CONTINUES TO WRITE THAT BUSINESS IN 21 STATES 9302040039 930204 MUTUAL FUNDS FUND MANAGERS ARE LOOKING OVERSEAS TO CATCH THE NEXT RUNNING OF THE BULLS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE FOREIGN STOCKS ARE CROPPING UP IN SOME OF THE FUND INDUSTRY'S LARGEST MUTUAL FUNDS THAT'S A SWITCH FOR A LOT OF WELLKNOWN MUTUAL FUND MANAGERS WHO IN THE PAST HAVE KEPT MOST OF THEIR MONEY IN US STOCKS BUT WITH US STOCK MARKET INDEXES AT ALLTIME HIGHS AND SOME FOREIGN MARKETS DEEPLY DEPRESSED THE FUND MANAGERS SEE GOOD REASON TO LOOK ABROAD THERE'S A CLEAR INCLINATION AMONG US DOMESTIC MANAGERS TO RAISE THEIR EXPOSURE OVERSEAS SAYS BILL WILBY MANAGER OF THE 12 BILLIONASSETS OPPENHEIMER GLOBAL FUND VANGUARD WINDSOR II HAD 46 OF ITS 54 BILLION PORTFOLIO INVESTED ABROAD AT YEAR END UP FROM 2 A YEAR EARLIER MEANWHILE THE 63 BILLION JANUS FUND BOOSTED ITS FOREIGNSTOCK HOLDINGS TO 11 FROM 78 AND DURING THE YEAR THE 13 BILLION SCUDDER CAPITAL GROWTH FUND RAISED ITS OVERSEAS INVESTMENTS TO 217 FROM 165 FOREIGN STOCKS HAVE BEEN ROTTEN PERFORMERS FOR THE PAST FOUR YEARS SINCE THE END OF 1988 THE MORGAN STANLEY INDEX FOR EUROPE AUSTRALIA AND THE FAR EAST HAS FALLEN 156 WHILE THE STANDARD & POOR'S 500STOCK INDEX HAS GAINED 79 BUT NOW SOME FUND MANAGERS ARE BETTING THAT THE FOURYEAR DROUGHT FOR FOREIGN STOCKS WILL COME TO AN END RECENTLY T ROWE PRICE ASSOCIATES' GROWTH & INCOME FUND RAISED ITS FOREIGNSTOCK EXPOSURE FROM ZERO TO 5 AND I'M ON THE WAY TO 10 SAYS STEPHEN BOESEL MANAGER OF THE 865 MILLION FUND I RECKON I'LL HIT 10 BY THE END OF THE QUARTER MR BOESEL'S FUND OWNS TWO MEXICAN BANKS AND FOUR EUROPEAN STOCKS INCLUDING BRITISH STEEL PLC BRITISH PETROLEUM CO AND HANSON PLC TAKEN TOGETHER THOSE THREE HAVE TWICE THE DIVIDEND YIELD THAT THE U S MARKET GIVES YOU NOTES MR BOESEL YOU CAN FIND SOME APPEALING STOCKS OVERSEAS FIDELITY ASSET MANAGER HAS 20 OF ITS 38 BILLION IN ASSETS INVESTED IN FOREIGN STOCKS UP FROM JUST 9 FOUR MONTHS AGO THAT'S A DRAMATIC INCREASE SAYS FUND MANAGER ROBERT BECKWITT I'M SIGNIFICANTLY UNDERWEIGHTED IN BIGCAP STOCKS IN THE US BECAUSE I THINK THEY'RE OVERVALUED MR BECKWITT NOTES THAT OVER THE PAST 23 YEARS THE S&P 500 HAS GAINED 22 A YEAR DURING PERIODS WHEN MONETARY POLICY WAS BEING RELAXED BUT JUST 03 A YEAR IN PERIODS OF MONETARY TIGHTENING HE SAYS A SIMILAR PATTERN EXISTS IN FOREIGN MARKETS WHY DOES MONETARY POLICY HAVE SUCH A BIG IMPACT ON STOCK PRICES AS MONETARY POLICY IS EASED AND INTEREST RATES FALL STOCKS BECOME MORE ATTRACTIVE BECAUSE INVESTORS EXPECT FASTER ECONOMIC GROWTH AND HIGHER CORPORATE PROFITS THAT MAKES STOCKS MORE APPEALING COMPARED WITH ALTERNATIVE INVESTMENTS SUCH AS MONEY MARKET INSTRUMENTS OR BONDS CONVERSELY RISING INTEREST RATES CAN SLOW ECONOMIC GROWTH AND THUS HURT CORPORATE PROFITS MR BECKWITT RECKONS THAT THE CURRENT PERIOD OF MONETARY EASING IS DRAWING TO AN END IN THE US WHICH COULD BE BAD NEWS FOR STOCK PRICES THE SITUATION OVERSEAS IS MUCH MORE PROMISING HE SAYS BECAUSE MONETARY POLICY IS ONLY BEGINNING TO BE RELAXED INDEED JAPAN'S CENTRAL BANK ON THURSDAY LOWERED ITS DISCOUNT RATE TO 25 MATCHING ITS LOWEST LEVEL EVER FROM 325 IF YOU LOOK AT EUROPEAN COUNTRIES ONE BY ONE THEY ARE STARTING TO CHANGE MONETARY POLICY MR BECKWITT SAYS THE SPECTACULAR RETURNS USUALLY OCCUR IN THE EARLY STAGES OF MONETARY EASING WHEN INTEREST RATES ARE HIGH AND PRICE/EARNINGS RATIOS ARE LOW MR BECKWITT IS WORRIED ABOUT THE RISING US DOLLAR WHICH CUTS INTO THE VALUE OF FOREIGN STOCKS FOR US HOLDERS AS A RESULT HE HAS PROTECTED MANY OF HIS FOREIGNSTOCK HOLDINGS WITH CURRENCY HEDGES MOST OTHER FIDELITY INVESTMENTS STOCK FUND MANAGERS AREN'T ALLOWED TO HEDGE THEIR CURRENCY EXPOSURE THOUGH THE FIRM SAYS THE POLICY IS BEING REVIEWED IT'S SOMETHING WE'RE TAKING A HARD LOOK AT AND WE MAY CHANGE OUR POSITION SAYS WILLIAM HAYES FIDELITY'S HEAD OF EQUITY INVESTMENTS MR HAYES SAYS FIDELITY IS MAKING A MAJOR EFFORT TO BOOST ITS FOREIGN STOCK MARKET RESEARCH THE FIRM NOW HAS 35 FOREIGNSTOCK ANALYSTS A RESEARCH TEAM THAT ALMOST RIVALS FIDELITY'S TEAM OF 55 US ANALYSTS FIDELITY FUND MANAGERS ARE STARTING TO USE MANY OF THE STOCKPICKING IDEAS GENERATED BY THESE FOREIGNSTOCK ANALYSTS FOREIGN STOCKS ACCOUNTED FOR 15 OF FIDELITY'S STOCK MARKET INVESTMENTS AT THE END OF 1992 UP FROM 107 A YEAR EARLIER THE BULK OF THAT INCREASE REFLECTS A GROWING INTEREST ON THE PART OF THE DOMESTIC FUNDS IN INVESTING OVERSEAS SAYS MR HAYES THE U S MARKET DOESN'T OFFER THE SAME SORT OF VALUES AS FOREIGN MARKETS DO ON A SELECTED BASIS THE MOVE TOWARDS FOREIGN STOCKS CAN ALSO BE SEEN AMONG GLOBAL FUNDS WHICH BUY BOTH US AND FOREIGN STOCKS THE 240 MILLION JANUS WORLDWIDE FUND HAD 57 OF ITS ASSETS IN FOREIGN STOCKS AT THE END OF 1992 UP FROM 43 A YEAR EARLIER I'M FINDING MORE AND MORE ATTRACTIVE STOCKS ABROAD SAYS HELEN HAYES THE FUND'S MANAGER MY GUESS IS THAT AS MORE AND MORE MANAGERS LOOK ABROAD THEY'RE MORE LIKELY TO FIND GOOD GROWTH RATES AT REASONABLE PRICE/EARNINGS MULTIPLES JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER THINKS THAT FOREIGN STOCKHOLDINGS WILL ACCOUNT FOR AN EVER BIGGER CHUNK OF US MUTUAL FUND PORTFOLIOS THE STRONG INTEREST IN FOREIGN STOCKS DESPITE THE POOR PERFORMANCE SUGGESTS THAT THIS IS A LONGERTERM PHENOMENON HE SAYS SHOULD IT BOTHER INVESTORS MOST PEOPLE EXPECT THEIR MANAGERS TO BE FLEXIBLE AND TAKE ADVANTAGE OF OPPORTUNITIES OWNING FOREIGN STOCKS MAY BE A SIGN OF THAT 9302040038 930204 WHAT'S NEWS WORLDWIDE THE US MILITARY WAS TOLD TO CUT 83 BILLION FROM ITS BUDGET DEFENSE SECRETARY ASPIN ORDERED THE NAVY TO CUT 3 BILLION THE AIR FORCE 28 BILLION AND THE ARMY 25 BILLION FOR THE FISCAL YEAR STARTING OCT 1 ACCORDING TO A DEFENSE DEPARTMENT OFFICIAL MILITARY OFFICERS EXPRESSED LITTLE SURPRISE AT NEWS OF THE SPENDING REDUCTIONS THEY CITED CLINTON'S CAMPAIGN PLEDGE TO SEEK 60 BILLION IN CUTS FROM THE BUSH ADMINISTRATION'S PROJECTED DEFENSE SPENDING OVER THE NEXT FIVE YEARS THE SERVICES WERE ADVISED TO PLAN ON HAVING 14 MILLION UNIFORMED PERSONNEL IN 1996 THE BUSH ADMINISTRATION HAD CALLED FOR AN EVENTUAL BASE FORCE OF 16 MILLION ACTIVEDUTY PERSONNEL THE STATE DEPARTMENT SAID THERE WAS GROWING MOMENTUM BEHIND ITS EFFORTS TO DIVERT AN ARAB CAMPAIGN FOR UN SANCTIONS AGAINST ISRAEL AS PUNISHMENT FOR DEPORTING 400 PALESTINIANS TO LEBANON BUT AT THE UN DIPLOMATS SAID FRANCE HAD DRAFTED A PROPOSAL AGAIN CALLING FOR THE IMMEDIATE RETURN OF THE ENTIRE GROUP OF DEPORTEES FEDERAL JUDGE KIMBA WOOD HAS EMERGED AS THE LEADING CANDIDATE FOR ATTORNEY GENERAL ACCORDING TO WHITE HOUSE AND DEMOCRATIC OFFICIALS THE NEW YORK JUDGE IMPRESSED CLINTON DURING AN INTERVIEW FRIDAY THE CLINTON ADMINISTRATION DISMISSED A EUROPEAN MEDIATOR'S COMPLAINT THAT THE US WASN'T DOING ENOUGH TO END THE WAR IN BOSNIA BUT THE STATE DEPARTMENT AGAIN DECLINED TO ENDORSE A PLAN FOR 10 ETHNIC ZONES IN THE FORMER YUGOSLAV REPUBLIC US HIGHWAY SAFETY OFFICIALS PROPOSED RULES TO BETTER PROTECT DRIVERS AND PASSENGERS IN ALL CARS LIGHT TRUCKS VANS AND OTHER PASSENGER VEHICLES FROM HEAD INJURIES THE PROPOSED RULES COULD REQUIRE A COSTLY REDESIGN OF DOMESTIC AND IMPORTED VEHICLES THE PENTAGON ORDERED THE ARMED SERVICES TO STOP QUESTIONING RECRUITS ABOUT SEXUAL PREFERENCE BUT SAID IT WOULD GIVE EVERY ENLISTEE DETAILED GUIDANCE CONCERNING FORBIDDEN SEXUAL CONDUCT BASEBALL'S EXECUTIVE COUNCIL SUSPENDED CINCINNATI REDS OWNER MARGE SCHOTT FOR ONE YEAR AND FINED HER 25000 FOR USING RACIAL AND ETHNIC SLURS FOLLOWING AN INVESTIGATION THAT BEGAN DEC 1 THE COUNCIL FOUND THAT STATEMENTS ATTRIBUTED TO THE 64YEAROLD OWNER WEREN'T IN THE BEST INTERESTS OF BASEBALL THE SUSPENSION WILL BEGIN MARCH 1 UN OFFICIALS ARE DISCUSSING THE POSSIBILITY OF SENDING THE BIGGEST UN PEACEKEEPING FORCE EVER ASSEMBLED TO SOMALIA WITH A MANDATE TO IMPOSE ORDER RATHER THAN JUST MAINTAIN IT THE ORGANIZATION'S SPECIAL ENVOY FOR SOMALIA SAID HE TOLD REPORTERS A MULTINATIONAL FORCE WITH UP TO 20000 PERSONNEL COULD REPLACE THE USLED FORCE OF 38000 CLINTON SAID HE WANTS TO MOVE FORWARD QUICKLY ON CAMPAIGN FINANCE REFORMS BUT SUGGESTED CHANGES MIGHT NOT TAKE EFFECT UNTIL AFTER THE 1994 ELECTIONS THE PRESIDENT MEETING WITH CONGRESSIONAL DEMOCRATS AT THE WHITE HOUSE SAID LEGISLATION VETOED LAST YEAR BY BUSH COULD BE A STARTING POINT FOR CAMPAIGN FINANCE DISCUSSIONS JURY SELECTION BEGAN IN LOS ANGELES IN THE FEDERAL CIVIL RIGHTS TRIAL OF FOUR WHITE POLICEMEN ACCUSED OF BEATING BLACK MOTORIST RODNEY KING JUDGE JOHN DAVIES BEGAN THE PROCESS BY PROMISING POTENTIAL JURORS THEIR NAMES WOULD BE KEPT SECRET GERMANY'S DEFENSE MINISTER ANNOUNCED A GENERAL FREEZE ON DEFENSE CONTRACTS FOR THE ARMED FORCES WHILE BUDGETARY CONCERNS WERE CITED THE MOVE ALSO SEEMS TO BE IN RESPONSE TO A SCANDAL OVER A 18 BILLION SPY PLANE A NEW STUDY CONFIRMED THAT MOST PEPTIC ULCERS ARE CAUSED BY A BACTERIUM AND CAN BE PERMANENTLY CURED BY ANTIBIOTICS THE AUSTRIAN RESEARCH CONFIRMED A US STUDY REPORTED IN MAY SOARING TUITION COSTS ARE KEEPING STUDENTS OUT OF COLLEGE A CONGRESSIONALLY FUNDED COMMISSION WARNED AND IT RECOMMENDED GIVING EACH STUDENT 14000 IN ANNUAL GRANTS OR LOANS THE US FRANCE AND BELGIUM DEMANDED THAT PRESIDENT MOBUTU OF ZAIRE TRANSFER POWER TO THE TRANSITIONAL GOVERNMENT LED BY HIS RIVAL PRIME MINISTER TSHISEKEDI ARMYLED RIOTS THAT ERUPTED IN KINSHASA A WEEK AGO HAVE LEFT HUNDREDS OF PEOPLE DEAD 9302040037 930204 BUSINESS BRIEF PACIFIC ENTERPRISES UTILITY POSTS NARROWER LOSS OF 1 MILLION FOR 4TH PERIOD PACIFIC ENTERPRISES REPORTED A NARROWER NET LOSS OF 1 MILLION OR SEVEN CENTS A SHARE FOR THE FOURTH QUARTER INCLUDING A 37 MILLION CHARGE FROM DISCONTINUED OPERATIONS LINKED TO THE COMPANY'S BROAD REORGANIZATION A YEAR EARLIER THE LOS ANGELES NATURAL GAS UTILITY HAD A NET LOSS OF 191 MILLION OR 268 A SHARE WHICH INCLUDED A 250 MILLION CHARGE FROM WRITEDOWNS OF OIL AND GAS PROPERTIES ANTICIPATED LOSSES ON THE SALE OF SOME RETAILING ASSETS AND A PROVISION FOR THE RESTRUCTURING REVENUE WAS 878 MILLION UP 10 FROM 795 MILLION PROFIT FROM CONTINUING OPERATIONS DROPPED TO 36 MILLION OR 42 CENTS A SHARE FROM 46 MILLION OR 56 CENTS A SHARE PACIFIC ENTERPRISES SAID IT ADOPTED A SOCALLED QUASIREORGANIZATION AT YEAR END THE COMPANY USED THE ACCOUNTING PROCEDURE TO ELIMINATE ITS RETAINED EARNINGS DEFICIT AND WROTE DOWN ITS NONUTILITY ASSETS AND LIABILITIES TO PRODUCE A 190 MILLION CHARGE DIRECTLY TO SHAREHOLDERS' EQUITY THE FINANCIAL RESULTS OF THE COMPANY'S MAIN UTILITY SUBSIDIARY WASN'T AFFECTED BY THE MOVE 9302040036 930204 BUSINESS BRIEF GENERAL DYNAMICS CORP MALFUNCTIONING VALVE CITED FOR TWO ROCKET FAILURES GENERAL DYNAMICS CORP'S SPACE SYSTEMS UNIT SAID A TEAM OF INVESTIGATORS BELIEVES A MALFUNCTIONING VALVE CAUSED TWO ATLAS I ROCKET FAILURES THAT OCCURRED IN APRIL 1991 AND AUGUST 1992 THE TEAM CONCLUDED THAT A VALVE IN THE ROCKET'S ENGINE FAILED TO CLOSE BEFORE LIFTOFF ALLOWING AIR TO BE INGESTED INTO THE ENGINE DURING THE BOOST PHASE THE AIR APPARENTLY SOLIDIFIED IN THE FIRST STAGE OF THE FUEL PUMP PREVENTING THE ENGINE TURBINE FROM ROTATING GENERAL DYNAMICS BASED IN FALLS CHURCH VA SAID IT PLANS A NUMBER OF CORRECTIVE STEPS AND HOPES TO RESUME ATLAS LAUNCHES NEXT MONTH THE TEAM'S CONCLUSIONS WERE ENDORSED BY AN INDEPENDENT OVERSIGHT BOARD CHAIRED BY A RETIRED AIR FORCE LIEUTENANT GENERAL GENERAL DYNAMICS SAID VARIOUS COMPANY CUSTOMERS AND SUPPLIERS ALSO PARTICIPATED IN THE INVESTIGATION THE INVESTIGATION BEGAN AFTER THE AUG 22 FAILURE OF AN ATLAS I ROCKET LAUNCHED FROM CAPE CANAVERAL FLA ABOUT EIGHT MINUTES INTO THE FLIGHT THE AIR FORCE SHOT DOWN THE ROCKET'S UPPER STAGE AFTER AN ENGINE FAILED TO ACHIEVE FULL THRUST AND THE ROCKET BEGAN TO TUMBLE THERE ARE CURRENTLY FIVE ATLAS LAUNCHES SCHEDULED THIS YEAR SAID GENERAL DYNAMICS SPACE SYSTEMS THE FIRST ONE IS SET TO BOOST A NAVY COMMUNICATIONS SATELLITE 9302040035 930204 BIG STRIKES LOCKOUTS AT US COMPANIES HIT 45YEAR LOW IN '92 WASHINGTON THE NUMBER OF MAJOR STRIKES AND LOCKOUTS AT US COMPANIES IN 1992 REACHED THE LOWEST LEVEL IN 45 YEARS THE BUREAU OF LABOR STATISTICS SAID THE AGENCY SAID THAT 35 MAJOR STOPPAGES WHICH BY DEFINITION ARE THOSE WITH 1000 OR MORE WORKERS INVOLVED 364000 WORKERS DURING THE YEAR THAT NUMBER DECLINED FROM 40 SUCH STOPPAGES IN 1991 AND FROM A PEAK OF 470 IN 1952 ABOUT TWOTHIRDS OF THE WORKERS WERE INVOLVED IN A SINGLE TWODAY NATIONAL RAILROAD STRIKE INVOLVING THE MACHINISTS' UNION ON THE SECOND DAY OF THAT STRIKE CONGRESS ENACTED BACKTOWORK LEGISLATION MANDATING SETTLEMENT OF THE DISPUTE TWENTYNINE OF THE WORK STOPPAGES WERE IN THE PRIVATE SECTOR THE LABOR DEPARTMENT DIVISION SAID INCLUDING 12 IN MANUFACTURING AND FIVE EACH IN CONSTRUCTION AND SERVICES FIVE OF THE SIX PUBLICSECTOR STOPPAGES WERE IN EDUCATION THE NUMBER OF STRIKES AND LOCKOUTS HAS BEEN STEADILY DECREASING SINCE THE 1960S PARTLY REFLECTING THE SLIPPING CLOUT OF ORGANIZED LABOR IN ADDITION TO THE RAILROAD STRIKE OTHER MAJOR STOPPAGES INVOLVED GENERAL MOTORS CORP AND THE UNITED AUTOMOBILE WORKERS 45100 WORKERS THE DETROIT BOARD OF EDUCATION AND THE AMERICAN FEDERATION OF TEACHERS 10500 WORKERS AND USAIR AND THE MACHINISTS' UNION 8300 WORKERS 9302040034 930204 METHANEX FLETCHER DISCUSS A COMBINATION OF METHANOL ASSETS VANCOUVER BRITISH COLUMBIA METHANEX CORP SAID IT IS IN THE FINAL STAGES OF TALKS TO MERGE ITS METHANOL ASSETS WITH THOSE OF FLETCHER CHALLENGE LTD OF NEW ZEALAND METHANOL A PETROCHEMICAL PRODUCT MADE FROM NATURAL GAS IS USED PRIMARILY TO MAKE FORMALDEHYDE WHICH IN TURN IS USED IN PLASTICS AND WOOD PROCESSING BUT THE MAJOR GROWTH MARKET FOR METHANOL IS AS A MAJOR COMPONENT IN METHYL TERTIARY BUTYL ETHER THE MOST COMMON ADDITIVE FOR RAISING THE OCTANE LEVEL IN GASOLINE SHOULD THE MERGER BE COMPLETED THE RESULTING COMPANY WOULD BE BY FAR THE WORLD'S LARGEST PRODUCER OF METHANOL FLETCHER CHALLENGE IS ALREADY THE WORLD'S LEADING METHANOL PRODUCER AT ABOUT 17 MILLION METRIC TONS 187 MILLION SHORT OR US TONS ANNUALLY METHANEX A PETROCHEMICALS COMPANY THAT PRODUCES ABOUT 800000 METRIC TONS OF METHANOL ANNUALLY IS ABOUT THE FIFTHLARGEST PRODUCER IN THE WORLD IN A BRIEF NEWS RELEASE METHANEX DIDN'T GIVE ANY FURTHER DETAILS ON THE CONTEMPLATED MERGER OFFICIALS OF THE COMPANY COULDN'T BE REACHED FOR FURTHER COMMENT FLETCHER CHALLENGE A FORESTPRODUCTS ENERGY CONSTRUCTION AND AGRICULTURALSERVICES CONCERN SAID IN NOVEMBER THAT IT MIGHT BE INTERESTED IN SELLING PART OF ITS INTEREST IN ITS METHANOL BUSINESS BUT PLANNED TO RETAIN A CONTROLLING STAKE IT ISN'T CLEAR WHAT STAKE FLETCHER MIGHT HOLD IN THE MERGED METHANOL OPERATION 9302040033 930204 BUSINESS BRIEF FREEPORTMCMORAN INC CONCERN TO CUT WORK FORCE USE OTHER SOURCES FOR TASKS FREEPORTMCMORAN INC SAID IT WOULD REDUCE ITS WORK FORCE AND USE OUTSIDE SOURCES FOR SEVERAL TASKS CUTTING ITS ANNUAL COSTS BY 33 MILLION THE NEW ORLEANS ENERGY AND NATURALRESOURCES CONCERN SAID 94 JOBS IN ITS RESEARCH AND ENGINEERING ENVIRONMENTAL AND SAFETY DEPARTMENTS WOULD BE ELIMINATED BY USING OUTSIDE SUPPLIERS IT SAID ABOUT 40 OF ITS WORKERS WILL BE HIRED BY CRESCENT TECHNOLOGY INC A NEW PRIVATELY HELD CONCERN THAT WILL PROVIDE SERVICES TO FREEPORT FREEPORT SAID IT WILL ELIMINATE AN ADDITIONAL 90 JOBS BY STREAMLINING ITS OPERATIONS MANY OF THE WORKERS LOSING THOSE JOBS WILL BE OFFERED EARLY RETIREMENT FREEPORT SAID JAMES MOFFETT CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID COMMODITY MARKETS HAVE BEEN HURT BY THE BREAKUP OF THE SOVIET UNION AND EUROPEAN COMMUNITY TRADE POLICIES AMONG OTHER THINGS WE MUST RESPOND TO THESE MARKET DISRUPTIONS BY EFFECTIVELY MANAGING OUR COSTS IN ORDER TO REMAIN COMPETITIVE IN THE GLOBAL MARKET PLACE HE SAID 9302040032 930204 DELTA ASKS US TO END ANTITRUST IMMUNITY FOR NORTHWEST KLM ATLANTA DELTA AIR LINES SAID IT PETITIONED THE DEPARTMENT OF TRANSPORTATION TO REVERSE A DECISION GRANTING ANTITRUST IMMUNITY TO AN OPERATING AGREEMENT BETWEEN NORTHWEST AIRLINES AND KLM ROYAL DUTCH AIRLINES IN THE PETITION DELTA SAYS THAT THE GRANT OF IMMUNITY IS INCONSISTENT WITH SOUND AVIATION POLICY AND ESTABLISHED ADMINISTRATIVE AND COURT PRECEDENT AND WOULD PROVIDE AN AVENUE FOR FOREIGN CARRIERS TO CIRCUMVENT LAWS LIMITING FOREIGN OWNERSHIP OF US AIRLINES LAST MONTH THE TRANSPORTATION DEPARTMENT APPROVED PLANS BY NORTHWEST A UNIT OF WINGS HOLDINGS INC AND KLM TO INTEGRATE SERVICES AND OPERATE AS IF THEY WERE A SINGLE CARRIER THE DOT UNDER THE BUSH ADMINISTRATION REJECTED THE ARGUMENT BY DELTA AND FEDERAL EXPRESS CORP THAT THE AGREEMENT ACTUALLY WOULD GIVE KLM CONTROL OF NORTHWEST DELTA ALONG WITH SEVERAL OTHER US AIRLINES ALSO HAS VOICED STRONG OPPOSITION TO BRITISH AIRWAYS'S PLAN TO INVEST IN USAIR GROUP INC UNDER PRESSURE THOSE TWO CARRIERS SCUTTLED AN EARLIER 750 MILLION AGREEMENT BUT DELTA HAS CALLED A MORE RECENT PROPOSED 300 MILLION INVESTMENT IN USAIR BY BRITISH AIR NOTHING MORE THAN THE OLD DEAL IN NEW DRESSING 9302040031 930204 OTC FOCUS STRONG DEMAND FOR TWO SOFTWARE ISSUES HELPS PROPEL OTC STOCKS TO RECORD LEVEL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET HIT RECORD LEVELS AS PRICES SOARED FOR TWO NEW OFFERINGS BY SOFTWARE DEVELOPMENT COMPANIES THE NASDAQ COMPOSITE INDEX ROSE 355 OR 050 TO A RECORD 70867 TOPPING THE PREVIOUS HIGH OF 70716 REACHED JAN 26 ADVANCING ISSUES LED DECLINERS 1577 TO 1125 VOLUME JUMPED TO 2917 MILLION SHARES FROM TUESDAY'S 2541 MILLION THE WHOLE GROUP IS VERY HOT AND THESE NEW OFFERINGS ARE GOING AT A BIG PREMIUM TO THE MARKET SAID EE GEDULD PRESIDENT OF HERZOG HEINE GEDULD IT IS ALL A PART OF THE FROTH IN THE MARKET INVESTORS ARE WILLING TO BUY THESE STOCKS AT ANY PRICE POWERSOFT CORP SURGED TO 38 1/4 ALMOST DOUBLE ITS OFFERING PRICE OF 20 ON ITS FIRST TRADING DAY AFTER THE MARKET CLOSED ON TUESDAY THE BURLINGTON MASS SOFTWARE DEVELOPER OFFERED 19 MILLION SHARES THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 19 AND 20 EACH INCREASED FROM AN EARLIER RANGE OF 14 TO 16 DURING ITS FIRST DAY OF TRADING MATHSOFT SKYROCKETED TO CLOSE AT 22 UP 9 POINTS FROM ITS OFFERING PRICE OF 13 THE CAMBRIDGE MASS SOFTWARE DEVELOPER OFFERED 25 MILLION SHARES THE COMPANY HAD PREVIOUSLY INCREASED ITS OFFERING RANGE TO 12 TO 14 FROM 10 TO 12 IT'S CRAZY I THINK PEOPLE ARE PLAYING THE GREATER FOOL PRINCIPLE SAID GEORGE MOORIN VICE PRESIDENT OF OTC TRADING AT JJB HILLIARD WL LYONS INC IN LOUISVILLE KY THEY BUY THE STOCK THINKING SOMEBODY IS GOING TO BUY IT AT A HIGHER PRICE TOMORROW SOMETIME THIS IS ALL GOING TO HAVE TO COME A HALT LATE YESTERDAY PROXIMA CORP PRICED TWO MILLION SHARES AT 13 EACH THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 11 AND 13 THE SAN DIEGO COMPANY MAKES LIQUID CRYSTAL DISPLAY PROJECTION PRODUCTS USED IN PERSONAL COMPUTERS TRADERS SAID INVESTORS ROTATED OUT OF MANY OF THE LARGE TECHNOLOGY BIOTECH AND CELLULAR STOCKS AND PUT SOME OF THAT MONEY INTO THE SMALLER OTC STOCKS THE NASDAQ 100 INDEX WHICH IS A MEASUREMENT OF THE LARGEST OTC ISSUES SLIPPED 181 OR 024 TO 75307 MICROSOFT FELL 5/8 TO 88 3/8 APPLE COMPUTER EASED 1/4 TO 60 AND INTEL DROPPED 2 3/8 TO 108 7/8 DELL COMPUTER SLIPPED 3 1/8 TO 41 7/8 THE PERSONAL COMPUTER MAKER REITERATED THAT THE SECURITIES AND EXCHANGE COMMISSION HASN'T COMPLETED ITS INFORMAL INQUIRY INTO THE COMPANY'S ACCOUNTING PRACTICES AND DISCLOSURES RELATING TO FOREIGN CURRENCY TRANSACTIONS DELL HOPES TO COMPLETE ITS OFFERING IN LATE FEBRUARY OR EARLY MARCH CELLULAR STOCKS DIDN'T FAIR WELL MCCAW CELLULAR COMMUNICATIONS FELL 3/4 TO 34 1/2 AND LIN BROADCASTING DROPPED 1 3/4 TO 81 BIOTECHNOLOGY STOCKS WERE MIXED AMGEN SLID 1 3/4 TO 57 1/4 BUT SYNERGEN ROSE 2 3/8 TO 55 1/8 AND BIOGEN EDGED UP 1/2 TO 37 3/4 DAHLBERG INC LEAPED 7 3/4 TO 23 BAUSCH & LOMB INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE DAHLBERG FOR 24 A SHARE IN A CASH TRANSACTION VALUED AT ABOUT 158 MILLION DAHLBERG MANUFACTURES THE MIRACLE EAR LINE OF HEARING AIDS JIMBO'S JUMBOS JUMPED 1 3/8 TO 6 1/4 A SUBSIDIARY OF CHOCK FULL O'NUTS JIMBO'S JUMBOS IS A BUYER AND PROCESSOR OF PEANUTS AND OTHER NUT PRODUCTS CHOCK FULL O'NUTS SAID IT AGREED IN PRINCIPLE TO SELL ALL ITS SHARES IN JIMBO'S JUMBOS FOR 3325 MILLION OR 7 A SHARE TO A PARTNERSHIP CONTROLLED BY JOHN W KLUGE CHOCK FULL O'NUTS OWNS ABOUT 73 OF JIMBO'S JUMBOS THE REMAINDER IS HELD BY THE PUBLIC GOVERNMENT TECHNOLOGY SERVICES ROSE 1 1/2 TO 8 3/4 THE AIR FORCE ANNOUNCED TUESDAY THAT GOVERNMENT TECHNOLOGY AND ZENITH DATA SYSTEMS WOULD SHARE THE DESKTOP IV CONTRACT WHICH HAS AN ESTIMATED POTENTIAL VALUE OF 655 MILLION TO GOVERNMENT TECHNOLOGY UNDER TERMS OF THE POSSIBLE THREEYEAR CONTRACT THE AIR FORCE ARMY AND NAVY AS WELL AS OTHER AGENCIES CAN ORDER AS MANY AS 300000 DESKTOP PCS ACCORDING TO ZENITH DATA ZENITH DATA IS A UNIT OF FRANCE'S CIE DES MACHINES BULL MS CARRIERS ROSE 3 TO 24 1/4 THE CARRIER OF GENERAL COMMODITIES REPORTED FOURTHQUARTER EARNINGS OF 28 CENTS A SHARE UP FROM 19 CENTS A SHARE A YEAR EARLIER THE RESULTS WERE HIGHER THAN THE MEAN ESTIMATE OF 22 CENTS A SHARE PROVIDED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM 9302040030 930204 SOME ON PENSION LIST CALL US DATA TOO PESSIMISTIC BUT CONCEDE PROBLEMS ARE THE NUMBERS AS BAD AS THEY LOOK THE WALL STREET JOURNAL CONTACTED ALL THE COMPANIES ON THE PENSION BENEFIT GUARANTY CORP'S LIST OF UNDERFUNDED PLANS AND MANY SAID THE GOVERNMENT FIGURES ARE TOO PESSIMISTIC IN SOME CASES THE COMPANIES USED DIFFERENT ACTUARIAL CALCULATIONS SUCH AS ASSUMING THAT PENSIONERS DIE SOONER OTHER COMPANIES USED DIFFERENT ASSUMPTIONS ABOUT FUTURE INTEREST RATES OR STOCKMARKET PERFORMANCE BUT NEARLY ALL OF THEM ACKNOWLEDGE A SIGNIFICANT PROBLEM WITH UNDERFUNDED PENSIONS FOR EXAMPLE GENERAL MOTORS CORP LAST YEAR BACKED OFF ITS OWN PENSION ASSUMPTIONS CONCEDING THAT THEY HAD BEEN TOO OPTIMISTIC NOW IT SAYS THE GOVERNMENT FIGURES DIFFER ONLY SLIGHTLY FROM ITS OWN AND IT HAS MADE CASH CONTRIBUTIONS TO ITS PLANS LAST YEAR AND THIS YEAR THE LONGTERM PLAN A GM OFFICIAL SAYS IS TO IMPROVE THE FUNDING SIMILARLY A WESTINGHOUSE ELECTRIC CORP OFFICIAL SAYS THE GOAL OF EVERYONE SHOULD BE TO BE FULLY FUNDED CHRYSLER CORP WHICH HAS MAPPED OUT ONE OF THE MOST SUBSTANTIAL FUNDING EFFORTS HAS JUST SOLD 46 MILLION NEW SHARES PLANNING TO DIRECT A BIG CHUNK OF THE NET PROCEEDS TO THE PENSION FUND BURLINGTON NORTHERN HONEYWELL INC ROCKWELL INTERNATIONAL CORP AND ROHR INC ALL SAY THEY PLAN TO CONTRIBUTE MORE HEAVILY TO THEIR PENSION PLANS IN COMING YEARS HOWEVER COMPANIES CAN'T ALWAYS FOLLOW THROUGH ON THEIR GOOD INTENTIONS WARNS JAMES LOCKHART FORMER EXECUTIVE DIRECTOR OF THE PENSION AGENCY HE SAYS MANY CONTRIBUTE TO UNDERFUNDED PLANS FOR A YEAR OR SO AND THEN STOP BECAUSE EARNINGS TRAIL EXPECTATIONS OR BECAUSE OF OTHER DEMANDS ON THE FUNDS VARITY CORP FOR EXAMPLE SAYS IT HASN'T MANAGED TO CLOSE THE GAP IN ITS PENSION FUNDS BECAUSE ITS FIRST PRIORITY IS TO PAY DOWN ITS HEFTY DEBT LTV CORP PLANS TO CONTRIBUTE AS MUCH AS 1 BILLION TO ITS PENSION FUNDS BUT NOT UNTIL IT HAS EMERGED FROM CHAPTER 11 PROBABLY IN MIDYEAR REYNOLDS METALS CO MADE A PENSION CONTRIBUTION LAST YEAR AFTER THE GOVERNMENT TALLY WAS PUT TOGETHER AND THE COMPANY FIGURES THAT THE PAYMENT ELIMINATES MOST OF THE GAP ONE DISPUTE CENTERS ON HOW FAST THE RETIREES TAKE THEIR MONEY THE GOVERNMENT CALCULATIONS ASSUME THAT PLANS WILL BE TERMINATED AND THAT RETIREES WILL TAKE THEIR RETIREMENT MONEY RIGHT AWAY MOST COMPANIES FIGURE THAT PLANS CONTINUE AS GOING CONCERNS PAYING OUT OVER TIME MANY COMPANIES OPERATE MULTIPLE PENSION PLANS WHILE SOME ARE UNDERFUNDED OTHERS MAY BE FULLY FUNDED OR EVEN OVERFUNDED THE PBGC TALLY INCLUDES ONLY THE UNDERFUNDED ONES THAT MAKES SENSE HOWEVER IT'S DIFFICULT FROM A LEGAL AND TAX STANDPOINT TO BORROW FROM AN OVERFUNDED PLAN TO SHORE UP AN UNDERFUNDED ONE TENNECO INC DID RECENTLY MERGE UNDERFUNDED PLANS WITH HEALTHIER ONES BUT THIS IS A HIGHLY COMPLEX PROCESS THOSE WHO SAY THE PBGC IS OVERSTATING THE PROBLEM NOTE THAT THE AGENCY STILL HAS POSITIVE CASH FLOW AN EXCESS OF YEARLY INCOME OVER BENEFIT PAYMENTS AND ASSETS EXCEEDING 6 BILLION MOREOVER EVERY FUND TAKEOVER GIVES THE PBGC MORE ASSETS TO WORK WITH THOUGH IT ALSO INCREASES ITS OBLIGATIONS WHICH NOW TOP 9 BILLION OTHER COMPANIES CONTEND THAT WHATEVER THE STATE OF AN INDIVIDUAL PENSION PLAN RETIREES HAVE LITTLE TO WORRY ABOUT IF THEIR FORMER EMPLOYER IS HEALTHY THE BUCK IS ONLY PASSED TO THE GOVERNMENT IF A COMPANY FAILS FINANCIALLY SAYS JIM MURDY CHIEF FINANCIAL OFFICER AT ALLEGHENY LUDLUM CORP IF THE COMPANY IS CONSISTENTLY PROFITABLE RETIREES AND FUTURE RETIREES ARE IN A VERY DIFFERENT POSITION SIMILARLY A KIMBERLYCLARK CORP OFFICIAL SAYS OUR PLAN IS MORE SECURE AS A RESULT OF OUR FINANCIAL POSITION THE 50 COMPANIES WITH THE LARGEST UNFUNDED PENSION LIABILITIES AS A PERCENT OF TOTAL LIABILITIES RANKED BY FUNDING RATIO THE PERCENT OF TOTAL THAT'S FUNDED ALL FIGURES UNLESS OTHERWISE STATED ARE IN MILLIONS OF DOLLARS AS OF DEC 31 1991 SEE RELATED STORY 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 WSJ FEB 3 1993 9302040029 930204 MARKETSCAN TROPICANA SQUEEZES OUT MINUTE MAID TO GET BIGGER SLICE OF CITRUS HILL FANS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL IT ISN'T OFTEN THAT THE NO 3 BRAND IN A 3 BILLION CATEGORY SIMPLY DROPS OUT AND LEAVES 210 MILLION IN ANNUAL SALES UP FOR GRABS SO WHEN PROCTER & GAMBLE CO SCUTTLED ITS MONEYLOSING CITRUS HILL ORANGE JUICE LAST SEPTEMBER THE TOP TWO COMPETITORS SEAGRAM CO'S TROPICANA AND COCACOLA CO'S MINUTE MAID SEIZED A RARE OPPORTUNITY AND LAUNCHED A JUICY FIGHT TROPICANA WENT DIRECTLY AFTER CITRUS HILL DRINKERS WHILE MINUTE MAID CURRIED FAVOR WITH GROCERY STORES TO GET AS MUCH OF CITRUS HILL'S SHELF SPACE AS POSSIBLE EARLY RESULTS SHOW TROPICANA IS WINNING HANDILY IN THE BIGGEST AND FASTESTGROWING PART OF THE ORANGEJUICE MARKET READYTODRINK JUICE IN CARTONS AND OTHER CONTAINERS TROPICANA HAS HISTORICALLY BEEN THE STRONGEST BRAND IN THAT SEGMENT OF THE MARKET WHILE MINUTE MAID HAS LONG BEEN NO 1 IN THE FREEZER CASE SUPERMARKET SALES DATA FROM INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOW THAT IN THE 2 BILLION READYTODRINK MARKET TROPICANA PURE PREMIUM'S SHARE INCREASED BY 37 PERCENTAGE POINTS FOR THE 12 WEEKS ENDED DEC 27 ITS MADEFROMCONCENTRATE VERSION PICKED UP HALF A PERCENTAGE POINT WHILE ITS FROZENJUICE SALES WERE FLAT IN THE SAME PERIOD TROPICANA'S SHARE OF THE OVERALL ORANGEJUICE MARKET ROSE BY 32 PERCENTAGE POINTS TO A TOTAL OF 301 ACCORDING TO INFORMATION RESOURCES MINUTE MAID'S PREMIUM CHOICE BY CONTRAST HAS GAINED ONLY THREETENTHS OF A SHARE POINT TO 49 IN THE READYTODRINK CATEGORY INFOSCAN NUMBERS SHOW MINUTE MAID FROM CONCENTRATE GAINED NINETENTHS OF A PERCENTAGE POINT TO 175 BUT MINUTE MAID HAS FARED BETTER IN THE DECLINING 920 MILLION FROZENJUICE MARKET IT SQUEEZED OUT A SHARE GAIN OF 38 PERCENTAGE POINTS IN FROZEN ORANGE JUICE IN THE 12 WEEKS ENDED DEC 27 RISING TO A 343 SHARE OF THAT CATEGORY IN THE SAME PERIOD MINUTE MAID'S SHARE OF THE ENTIRE ORANGEJUICE BUSINESS INCREASED 18 PERCENTAGE POINTS TO 259 INFORMATION RESOURCES SAYS DWINDLING SUPPLIES OF THE DISCONTINUED CITRUS HILL BRAND WERE STILL AVAILABLE DURING THE 12WEEK PERIOD SOME MARKETING CONSULTANTS SAY TROPICANA'S LEAD IN THE BATTLE OF CITRUS HILL IS A MATTER OF SHEER AGGRESSIVENESS THE SEEDS OF MINUTE MAID'S LOSS THEY CONTEND LIE IN ITS OWN CONSERVATIVE AND SLOWONTHEDRAW WAYS OF DOING BUSINESS IN THE JUICE MARKET COKE IS ALWAYS SLOW TO CAPITALIZE ON OPPORTUNITIES SAYS CONSULTANT TOM PIRKO OF BEVMARK INC THEY JUST KIND OF SIT ON THE SIDELINES THE MARKETERS AT MINUTE MAID REJECT SUCH SOUR CRITICISM WE ARE A LONG WAY FROM THE FINAL STORY BEING WRITTEN SAYS DAVID THROCKMORTON A MARKETING EXECUTIVE AT COCACOLA FOODS THE UNIT THAT OVERSEES THE MINUTE MAID BRAND HE ADDS WE HAVE BEEN AGGRESSIVE MINUTE MAID IS PLACING ITS BETS ON ITS CALCIUMLADEN VERSION WHICH SEEMS TO BE FARING WELL AND TROPICANA DOESN'T YET HAVE SUCH A PRODUCT FORTY PERCENT OF CITRUS HILL'S SALES CAME FROM A CALCIUMADDED VERSION TROPICANA BEGAN ITS BATTLE PLANNING EARLY LAST SEPTEMBER AFTER RUMORS SWEPT THROUGH THE GROCERY TRADE THAT PROCTER'S WITHDRAWAL WAS IMMINENT IT HIRED A RESEARCH FIRM TO CREATE A LIST BY ZIP CODE OF SOME 11 MILLION MIDDLECLASS HOUSEHOLDS THAT WERE LIKELY CITRUS HILL BUYERS WHEN PROCTER MADE ITS RETREAT OFFICIAL ON SEPT 17 TROPICANA MOVED QUICKLY WITHIN WEEKS 11 MILLION HOMES RECEIVED COUPONS FOR 40 CENTS OFF A TYPICAL 279 CARTON OF TROPICANA PROMISING IF YOU LIKED CITRUS HILL ORANGE JUICE YOU'LL LOVE THE GREAT TASTE OF TROPICANA A SEPARATE COUPON CREATED FOR GROCERY STORES WARNED SHOPPERS VERY SOON YOU WON'T BE ABLE TO FIND CITRUS HILL ORANGE JUICE ON YOUR GROCER'S SHELVES FROM THE FIRST MAILING OF 11 MILLION HOMES TROPICANA GOT BACK ROUGHLY 15 OF ITS COUPONS ABOUT DOUBLE ITS TYPICAL RESPONSE A SECOND ROUND OF TROPICANA COUPONS WILL GO OUT NEXT WEEK TO REINFORCE THE COUPONS TROPICANA ADDED 12 MILLION IN TV COMMERCIALS TO ITS EXISTING AD SCHEDULE IN ABOUT TWO DOZEN CITIES OVER THREE MONTHS THEY HAVE BEEN VERY AGGRESSIVE SAYS HELLEN BERRY A CONSULTANT WITH BEVERAGE MARKETING CORP IN NEW YORK THERE HAS BEEN MORE ADVERTISING FROM TROPICANA THAN FROM MINUTE MAID IT ISN'T CLEAR HOWEVER WHETHER TROPICANA'S NEWFOUND FIGHTING SPIRIT CAN LIFT THE TROUBLED SEAGRAM UNIT SINCE SEAGRAM ACQUIRED TROPICANA FIVE YEARS AGO THE JUICE BUSINESS HAS FAILED TO LIVE UP TO EXPECTATIONS IN THE LAST YEAR IT HAS BEEN ROCKED BY SHAKY MANAGEMENT CONTROLS COSTCUTTING AND THE DEPARTURE OF TWO PRESIDENTS THE COMPANY IS STILL SEARCHING FOR A NEW PRESIDENT TO REPLACE WILLIAM G PIETERSEN WHO LEFT IN OCTOBER AT MINUTE MAID EXECUTIVES MAINTAIN THEY ALSO FOCUSED ON THE CONSUMER MAILING COUPONS AND PLACING INSERTS IN SUNDAY NEWSPAPERS BUT MINUTE MAID PLACED MORE EMPHASIS ON COURTING GROCERS MR THROCKMORTON OF COCACOLA FOODS SAYS THE COMPANY SPENT A SIGNIFICANT AMOUNT OF MONEY ON INCENTIVE PAYMENTS TO GROCERS TO GET THEM TO STOCK MINUTE MAID ON THE REFRIGERATED SHELVES AND IN THE FREEZER SPACE THAT CITRUS HILL HAD ONCE OCCUPIED THEIR REPS WERE IN RIGHT AWAY TRYING TO GATHER UP AS MUCH TURF AS THEY COULD SAYS NORMAN MAYNE AN EXECUTIVE WITH DOROTHY LANE MARKETS INC A SMALL GROCERY CHAIN IN DAYTON OHIO HE GAVE IT TO THEM TO HELP GROCERS FILL A SUDDEN HOLE IN PROMOTIONAL SCHEDULES MINUTE MAID TOOK OVER CITRUS HILL'S COMMITMENTS FOR INSTORE PROMOTIONS SUCH AS PRODUCT SAMPLINGS MINUTE MAID HAS BEEN STRESSING THE ONE IMPORTANT EDGE IT HAS OVER TROPICANA CALCIUM IT RECENTLY BEGAN RUNNING ADS ON TELEVISION AND IN TRADE MAGAZINES FEATURING ITS CALCIUM PRODUCT THE ONLY NATIONAL BRAND DISTRIBUTING CALCIUM FORTIFIED ORANGE JUICE TRUMPETS A CURRENT MINUTE MAID AD IN SUPERMARKET NEWS A TRADE PUBLICATION BUT GIVEN CITRUS HILL'S DEMISE MINUTE MAID HAS BEEN WARY OF MAKING ITS SOLE APPEAL ON THE BASIS OF CALCIUM TROPICANA WON'T SAY WHETHER IT PLANS A CALCIUM JUICE IN SOME MARKETS THE CALCIUM JUICE IS POPULAR FORTUITOUSLY D'AGOSTINO'S A NEW YORK SUPERMARKET CHAIN INTRODUCED A CALCIUMPACKED STORE BRAND OF ORANGE JUICE A FEW MONTHS BEFORE CITRUS HILL WITHDREW IT RECENTLY DEVOTED MOST OF A FULLPAGE AD IN THE NEW YORK TIMES TO THE PRODUCT AND SAYS IT HAS PICKED UP 70 OF CITRUS HILL'S BUSINESS IN THE NEW YORK AREA NATIONALLY PRIVATELABEL ORANGE JUICE HAD BEEN GROWING STEADILY IN RECENT YEARS BUT IT HAD A SMALL DECLINE IN THE 12 WEEKS ENDED DEC 27 INFOSCAN DATA SHOW THAT IS LARGELY BECAUSE A GLUT OF ORANGES HAS DRIVEN JUICE PRICES DOWN BY AS MUCH AS 20 MAKING THE HEAVILY DISCOUNTED NATIONAL BRANDS MORE AFFORDABLE IN THE END THE FLURRY OF COUPONS AND INSTORE PROMOTIONS UNLEASHED BY TROPICANA AND MINUTE MAID MAY NOT HAVE THE DESIRED EFFECT OF WINNING OVER LOYAL NEW JUICE DRINKERS SAYS CYNTHIA JAMES A HOMEMAKER IN MONTICELLO MINN I BUY WHATEVER IS CHEAPEST TROPICANA HAS BEEN THE BIG WINNER IN REFRIGERATED ORANGE JUICE AND MINUTE MAID HAS GAINED IN THE FREEZER CASE SINCE PROCTER & GAMBLE DISCONTINUED CITRUS HILL LAST FALL 9302040028 930204 LEISURE & ARTS BOOKSHELF THE BEST OF THE BUNCH BY RICHARD J TOFEL JIMMY CARTER REMAINS THE ONLY DEMOCRAT IN THE PAST 28 YEARS TO HAVE RECEIVED A MAJORITY OF THE POPULAR VOTE FOR PRESIDENT AND ONE OF ONLY TWO NONINCUMBENT DEMOCRATS TO DO SO IN THIS CENTURY THE OTHER WAS FRANKIN DELANO ROOSEVELT MR CARTER ACHIEVED THIS FEAT NOT AS A RESULT OF A NATIONAL EPIDEMIC OF NAIVETE OR BECAUSE OF SOME FREAK HISTORICAL ACCIDENT BUT BECAUSE HE POSSESSED AN INTEGRITY AND COMMITMENT TO SERVICE THAT WERE PARTICULARLY APPEALING TO VOTERS IN 1976 IT IS THESE SAME QUALITIES THAT IN THE CURRENT BUMPER CROP OF FIVE FORMER PRESIDENTS MAKES ONE LOOK WARMLY ON THE INDUSTRIOUS MR CARTER THE FORCES THAT SHAPED MR CARTER'S PUBLIC CHARACTER ARE ON DISPLAY IN HIS NEW BOOK TURNING POINT A CANDIDATE A STATE AND A NATION COME OF AGE TIMES BOOKS 223 PAGES 22 HIS FIFTH SINCE LEAVING THE WHITE HOUSE IN IT HE RECOUNTS HIS FIRST CAMPAIGN FOR PUBLIC OFFICE HIS 1962 RUN FOR A SEAT IN THE GEORGIA STATE SENATE THE CONTEST DESCRIBED HERE WAS LARGELY ONE BETWEEN GOOD AND EVIL MR CARTER CAME TO POLITICS AS THE CANDIDATE OF RACIAL INTEGRATION HIS OPPONENT WAS A SEGREGATIONIST MR CARTER'S CANDIDACY WAS SPURRED BY THE FIRST CONSTITUTIONALLY MANDATED REAPPORTIONMENT THE POLITICAL BOSS SUPPORTING HIS OPPONENT LITERALLY STUFFED THE BALLOT BOX AND RECORDED VOTES ON BEHALF OF THE DEAD GOOD TRIUMPHED BUT NOT WITHOUT A STRUGGLE INCLUDING A RECOUNT AND A DRAMATIC COURTROOM CONFRONTATION THAT SOMEONE WHO RECEIVED THIS KIND OF POLITICAL BAPTISM MIGHT BE INCLINED TO MORALISM ONCE IN OFFICE CAN HARDLY BE SURPRISING TURNING POINT ALSO UNDERSCORES ANOTHER IMPORTANT TRUTH ABOUT JIMMY CARTER THE POLITICIAN THAT HE CAME TO THIS CALLING RELATIVELY LATE IN LIFE HE BEGAN HIS FIRST RACE FOR OFFICE ON HIS 38TH BIRTHDAY WITHOUT SO MUCH AS A WORD OF WARNING TO HIS BUSINESS PARTNER AND WIFE ROSALYN HER FIRST INDICATION CAME WHEN HER HUSBAND PUT ON HIS SUNDAY PANTS RATHER THAN HIS WAREHOUSE WORK CLOTHES AND WENT OFF TO PAY HIS FILING FEE POLITICS WAS HIS THIRD CAREER AFTER THE NAVY AND FOLLOWING THE EARLY DEATH OF HIS FATHER FARMING AGAIN IT SHOULD NOT COME AS A SHOCK THAT SOMEONE OF MR CARTER'S PEDIGREE MIGHT HAVE CONTEMPT FOR LIFELONG POLITICIANS THIS IS AN ENGAGINGLY WRITTEN BOOK EASILY THE MOST RELAXED IN TONE AND STYLE YET PRODUCED BY MR CARTER IT REFLECTS THE SELFCONFIDENCE HE SEEMS TO DISPLAY WITH EVER GREATER MEASURE AS HIS TROUBLED PRESIDENCY RECEDES IN TIME THE BOOK IS FULL OF LOVELY STORIES OF AN UNLOVELY OLD SOUTHERN POLITICAL SYSTEM IN ITS DECLINE THIS FIRST ACT OF MR CARTER'S POLITICAL LIFE INCLUDED HIS INITIAL PROFESSIONAL ENCOUNTERS WITH GRIFFIN BELL MRS CARTER'S COUSIN AND LATER HER HUSBAND'S ATTORNEY GENERAL AND WITH GEORGE BUSBEE HIS SUCCESSOR AS GOVERNOR OF GEORGIA MOST INTRIGUING IS THE PORTRAIT OF MR CARTER'S TRIAL LAWYER FOR THE RECOUNT CHARLES KIRBO WHO LATER DECLINED TO BE CONSIDERED FOR ANY ADMINISTRATION POST MISTUH KIRBO AS HE WAS UNFAILINGLY KNOWN IN AN OTHERWISE FIRSTNAMESONLY WHITE HOUSE IS DESCRIBED AS THE MOST VALUED AND EFFECTIVE ADVISER OF THE CARTER PRESIDENCY BUT THERE IS NO INDICATION HERE OF WHAT MR CARTER MEANS BY THIS AND MR KIRBO SEEMS TO HAVE MADE IT A POINT NOT TO LEAVE FINGERPRINTS THE NARRATIVE REACHES BACK TO EIGHTYEAROLD JIMMY CARTER'S FIRST POLITICAL MEMORY OF A CAMPAIGN RALLY AT WHICH THE BOY LEARNED THAT POLITICAL ORATORY IS NOT THE GREATEST THING SINCE SLICED BREAD A NEW BREADSLICING MACHINE HAD BEEN INSTALLED ON THE FAIRGROUNDS FOR THE OCCASION AND SINCE NONE OF US HAD EVER SEEN SLICED BREAD BEFORE MOST OF THE CROWD GATHERED TO WATCH THE MACHINE WHILE ONLY A FEW LISTENED TO THE CONGRESSMAN ORATE SOME WHO REMEMBER PRESIDENT CARTER'S ALMOST INVARIABLY UNMEMORABLE SPEECHES MIGHT SAY HE LEARNED THIS LESSON TOO WELL BUT IF MR CARTER IS A QUIET SORT OF HERO HE EMERGES FROM THESE PAGES AS A HERO NONETHELESS AS A LOCAL FARMER IN THE LATE 1950S HE REFUSED TO JOIN THE WHITE CITIZENS' COUNCIL AND STUCK BY THAT DECISION EVEN WHEN VISITED BY A DELEGATION OF 20 OF HIS BEST CUSTOMERS WHO CAME BY TO OFFER TO PAY THE MEMBERSHIP FEE AS CHAIRMAN OF THE SUMTER COUNTY SCHOOL BOARD IN THE EARLY '60S HE CONSOLIDATED TWO SCHOOL SYSTEMS IN PART TO FACILITATE INTEGRATION PERSEVERING EVEN WHEN BITTERLY OPPOSED BY HIS RELATIVES AND SHUNNED BY HIS SMALLTOWN NEIGHBORS HERE IS A MAN RESERVED AND HIGHMINDED BUT WITH A PASSION FOR DECENCY THE PARADOX OF JIMMY CARTER AS PRESIDENT OF COURSE WAS THAT HIS GREATEST STRENGTHSHIS ESSENTIAL MODESTY QUIET INTEGRITY UNWILLINGNESS TO COMPROMISE ON PRINCIPLEWERE ALSO HIS MOST GLARING WEAKNESSES WHAT TURNING POINT VIVIDLY ILLUSTRATES IS THAT THIS DICHOTOMY WAS PRESENT FROM THE EARLIEST DAYS OF HIS POLITICAL LIFE THUS WHEN A PREACHER WHO CAME TO TOWN DURING THE 1962 CAMPAIGN ASKED IF YOU WANT TO BE OF SERVICE TO OTHER PEOPLE WHY DON'T YOU GO INTO THE MINISTRY OR SOME HONORABLE SOCIAL SERVICE WORK MR CARTER RESPONDED WITH ANNOYANCE HOW WOULD YOU LIKE TO BE THE PASTOR OF A CHURCH WITH EIGHTY THOUSAND MEMBERS IF VIEWING THE PRESIDENT AS THE PASTOR OF A CHURCH WITH 250 MILLION MEMBERS WAS NOT ENOUGH TO MAKE JIMMY CARTER A GREAT PRESIDENT THIS BOOK HELPS REMIND US THAT IT MAY WELL HAVE BEEN ENOUGH TO MAKE HIM A GREAT MAN MR TOFEL AN ASSISTANT MANAGING EDITOR OF THE JOURNAL WORKED AS AN INTERN IN THE CARTER WHITE HOUSE 9302040027 930204 FINANCING BUSINESS HENLEY INTERNATIONAL INC HENLEY INTERNATIONAL INC SUGAR LAND TEXAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 50 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES PROCEEDS WILL BE USED TO FINANCE FUTURE ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES THE MEDICAL PRODUCTS COMPANY SAID KEMPER SECURITIES INC AND MORGAN KEEGAN & CO ARE MANAGING UNDERWRITERS FOR THE OFFERING 9302040026 930204 WHO'S NEWS RUSSELL CORP RUSSELL CORP ALEXANDER CITY ALA EC GWALTNEY WILL RETIRE AS CHAIRMAN OF THE APPAREL MAKER IN APRIL MR GWALTNEY 75 YEARS OLD HAD BEEN CHIEF EXECUTIVE OFFICER FROM 1982 UNTIL 1988 NO NEW CHAIRMAN WAS NAMED 9302040025 930204 HEARD ON THE STREET SALOMON STOCK APPEALS TO SOME AS FIRM REPORTS STRONG RESULTS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL SALOMON ITS EARNINGS ENGINE BACK ON TRACK IS EMERGING AS THE SLEEPER OF SECURITIESBROKER STOCKS YESTERDAY THE BIG SECURITIES FIRM'S SHARES JUMPED 8 AFTER IT POSTED SURPRISINGLY SOLID FOURTHQUARTER RESULTS REVERSING A YEAREARLIER LOSS EVEN SO SALOMON'S SHAREPRICE GAIN OF 5 THIS YEAR STILL TRAILS THE 9 RISE FOR ALL BROKERAGE STOCKS AND IT TRADES AT A LOWER MULTIPLE TO BOOK VALUE THAN MERRILL LYNCH AND OTHER BROKERAGEHOUSE RIVALS SALOMON STOCK ISN'T FOR THE FAINTHEARTED IT'S GIVEN TO UNUSUALLY BIG ZIGZAGS EVEN FOR THE VOLATILE BROKERAGE SECTOR THE STOCK TUMBLED 12 THE DAY THE FIRM REPORTED THIRDQUARTER RESULTS ITS ENERGY BUSINESS HAS BLED RED INK FOR TWO YEARS AND SALOMON CONTINUES TO LOSE KEY EXECUTIVES LONG AFTER IT EMERGED FROM A DEBILITATING TREASURYAUCTION BIDDING SCANDAL STILL AT THESE LEVELS THE PROFIT PUNCH OF ITS FLAGSHIP SALOMON BROTHERS BROKERAGE UNIT IS WORTH THE RISKS SAY SOME MONEY MANAGERS AND ANALYSTS THE BROKERDEALER IS A MONEY MACHINE SAYS MICHAEL PRICE CHAIRMAN OF THE 49 BILLION MUTUAL SERIES FUND GROUP WHICH OWNS 27 MILLION SALOMON SHARES EVEN AS MR PRICE RECENTLY SHED HIS MERRILL LYNCH HOLDINGS AND PARED OTHER BROKERS HE CONTINUES TO SNAP UP SALOMON WHICH CLOSED YESTERDAY AT 40 LESS THAN 13 TIMES BOOK VALUE THIS IS A 45 STOCK MR PRICE SAYS SOME MONEY MANAGERS WHO HAD BOUGHT SALOMON SHARES IMMEDIATELY AFTER THE AUGUST 1991 SCANDAL AND LATER SOLD WHEN THE STOCK REBOUNDED LAST YEAR HAVE BEEN NIBBLING AGAIN ROGER ENGEMANN PORTFOLIO MANAGER OF THE 640 MILLION PASADENA GROWTH FUND RECENTLY BOUGHT 100000 SHARES THAT'S JUST A TOE IN THE WATER FOR US HE NOTES BUT WE THINK IT'S A VIABLE COMPANY EVEN SOME PERSISTENT BEARS CONCEDE THAT YESTERDAY'S RESULTS COULD TRIGGER FURTHER GAINS I'M NOT INCLINED TO HOP ON HERE BUT I'LL ADMIT THE STOCK COULD RUN A LITTLE BIT MORE SAYS LAWRENCE ECKENFELDER A BROKERAGEFIRM ANALYST AT PRUDENTIAL SECURITIES WHO NEVERTHELESS IS KEEPING HIS HOLD RECOMMENDATION ON THE STOCK SALOMON'S FOURTHQUARTER NET INCOME OF 143 MILLION OR 110 A SHARE REVERSES A LOSS OF 29 MILLION OR 41 CENTS A SHARE A YEAR EARLIER SOME ANALYSTS HAD EXPECTED A PROFIT AS LOW AS 75 CENTS A SHARE FOR THE YEAR SALOMON POSTED NET OF 550 MILLION OR 418 A SHARE 85 HIGHER THAN THE 507 MILLION OR 390 A SHARE IN 1991 EVEN AFTER 185 MILLION IN PRETAX CHARGES FROM FINES RELATING TO ITS TREASURY SCANDAL SALOMON HAD RECORD 1992 PRETAX EARNINGS OF 11 BILLION ANALYSTS CALLED SALOMON'S PROFIT WINDFALL AMAZING GIVEN THE FIRM'S MUCHPUBLICIZED PROBLEMS AND TALENT DRAIN AFTER ITS 1991 TREASURYAUCTION SCANDAL THE STOCK WAS WRITTEN OFF FOR DEAD BY SOME ANALYSTS AND ALTHOUGH SALOMON SAYS IT ISN'T MAKING ENORMOUS BONDMARKET TRADING BETS AS IT ONCE DID YOU CAN'T TELL THAT FROM THE EARNINGS THE BIG PROFIT DRIVER IN THE QUARTER WAS SALOMON BROTHERS THE SECURITIES FIRM SAW REVENUE FROM ITS CASH COW PRINCIPAL TRADING MORE THAN DOUBLE TO 686 MILLION THAT'S JARGON FOR BOND TRADING FOR SALOMON'S OWN ACCOUNT MUCH OF IT IS DONE BY THE FIRM'S BONDARBITRAGE GROUP THESE TRADERS MAKE BETS ON CHANGES IN INTEREST RATES AMONG BONDS OF DIFFERENT MATURITIES OFTEN USING MATHEMATICAL METHODS TO DETERMINE THE APPROPRIATE PRICE RELATIONSHIPS BETWEEN BONDS BONDFUTURES CONTRACTS AND BOND OPTIONS SOME ANALYSTS FRET THAT THE RECENT DEPARTURE OF ERIC ROSENFELD WHO HELPED LEAD SALOMON'S PUSH INTO BONDARBITRAGE TRADING COULD CRIMP FUTURE PROFITS THE MOVE BY MR ROSENFELD ONE OF SALOMON'S MOST POWERFUL BOND EXECUTIVES COULD PROMPT OTHER BOND DEPARTURES AT THE FIRM BUT BULLS SHRUG OFF SUCH CONCERNS SAYS WERTHEIM SCHRODER ANALYST JAMES HANBURY THEY HAVE A PRETTY DEEP TRADING BENCH MEANTIME SALOMON CONTINUES TO RAKE IN BIG BUCKS FROM AN UNUSUALLY STEEP YIELD CURVE OR THE GAP BETWEEN SHORTAND LONGTERM INTEREST RATES THIS GAP ALLOWS SALOMON WHICH CARRIES AMONG THE BIGGEST BOND INVENTORIES ON WALL STREET TO FINANCE ITS BONDS WITH INEXPENSIVE SHORTTERM BORROWING EARN HIGHER LONGTERM YIELDS ON THE BONDS AND MAKE ADDITIONAL GAINS FROM BOND TRADING DURING THE QUARTER SALOMON REAPED 131 BILLION IN INTEREST AND DIVIDENDS UP 19 FROM A YEAR EARLIER AS LONG AS THE GAP BETWEEN SHORTAND LONGTERM RATES DOESN'T NARROW MUCH ANALYSTS SAY INTEREST INCOME WILL CONTINUE TO BE A SIGNIFICANT SOURCE OF SALOMON'S PROFIT THE BIGGEST BLOW TO SALOMON'S PROFIT PICTURE CONTINUES TO BE ITS PHIBRO ENERGY UNIT THE OILTRADING SUBSIDIARY HAD A PRETAX LOSS OF 181 MILLION IN THE QUARTER WHICH INCLUDED A 72 MILLION CHARGE TO GET OUT OF SOME BUSINESSES AND MERGE INTO SALOMON INC PHIBRO HAD PRETAX PROFIT OF 30 MILLION IN THE 1991 FOURTH QUARTER A SCALEDDOWN PHIBRO NO LONGER IS THE COUNTERWEIGHT IT ONCE WAS TO OFFSET WEAK SECURITIESRELATED EARNINGS AT SALOMON YET MONEY MANAGERS POINT TO OTHER POSITIVES AT THE COMPANY EMPLOYEES' PAY REMAINS IN CHECK COMPENSATION REPRESENTS 42 OF NET REVENUE THAT'S REVENUE MINUS INTEREST EXPENSE IN AN INDUSTRY WHERE ANYTHING BELOW 50 IS CONSIDERED HEROIC AND SALOMON BOUGHT BACK 67 MILLION SHARES DURING THE QUARTER HEARTENING SOME ANALYSTS SALOMON'S STOCK PRICE STANDS AT A SHADE MORE THAN 12 TIMES BOOK VALUE OR ASSETS MINUS LIABILITIES WHICH ANALYSTS SAY IS LOWER THAN THE MULTIPLES OF ROUGHLY 15 FOR MERRILL 16 FOR BEAR STEARNS AND 17 FOR MORGAN STANLEY AND IF YOU SUBTRACT THE SCANDALRELATED AND OTHER CHARGES SALOMON BROTHERS HAS BEEN GENERATING A PRETAX RETURN ON EQUITY OF ABOUT 40 SAYS LAWRENCE SONDIKE A MUTUAL SERIES VICE PRESIDENT YOU'RE PAYING ONLY A MODEST PREMIUM TO BOOK MR SONDIKE SAYS THE DOWNSIDE IS SOMEWHAT LIMITED SILVER LINING GOLD INVESTORS FARED BETTER THAN IBM INVESTORS IN 1992 PROCLAIMS A NEWS RELEASE JUST IN FROM UNITED SERVICES FUNDS A SAN ANTONIO MUTUALFUND MANAGER THE RELEASE NOTES THAT LAST YEAR IBM'S STOCK MARKET VALUE FELL 232 BILLION OR 45 MEANWHILE THE JAMES CAPEL WORLD GOLD INDEX DROPPED A MORE MODEST 122 BILLION OR 30 THE PRESS RELEASE HOWEVER FAILS TO MENTION THAT IBM SHAREHOLDERS DIDN'T DO AS BADLY AS INVESTORS IN UNITED SERVICES' US GOLD SHARES FUND WHICH PLUNGED 508 LAST YEAR MAKING IT THE FUND INDUSTRY'S SECONDWORSTPERFORMING MUTUAL FUND AN UNFORTUNATE OVERSIGHT NOT SO SAYS UNITED SERVICES CHAIRMAN FRANK HOLMES EVERYBODY KNEW THE FUND WAS DOWN 508 HE SAYS THAT WAS IN ALL THE PUBLICATIONS IT WAS IN ALL THE NEWSPAPERS NOBODY IS TRYING TO OBFUSCATE THAT FACT 9302040024 930204 REVIEW & OUTLOOK EDITORIAL ASIDES THE GRIDLOCK BULL MARKET IT'S HARD NOT TO NOTICE THAT THE STOCK MARKET HAS BEEN DOING RATHER WELL OF LATE ADDING 45 POINTS TO THE DOW JONES INDUSTRIALS INDEX YESTERDAY WE'VE BEEN TRYING TO SQUARE THIS OPTIMISM WITH THE GOINGS ON IN WASHINGTON WE'VE CONCLUDED THAT THE CLINTON ADMINISTRATION CAN TAKE FULL CREDIT THE MARKET HAS WATCHED TWO WEEKS OF NOMINATION FAILURE GAYS IN THE MILITARY THREATS OF 40 TAX RATES AND TALK OF A HEALTHCARE OVERHAUL A WELFARE OVERHAUL AND A SHORTTERM STIMULUS PACKAGE TO CREATE JOBS WHILE SIMULTANEOUSLY TRYING TO PASS THE FAMILY LEAVE BILL IN SHORT THE MARKET SEES GRIDLOCK IN WASHINGTON MEANING THE ECONOMY MAY BE LEFT ALONE LONG ENOUGH TO SIMPLY GROW 9302040022 930204 BUSINESS BRIEF SUNBEAM'S NET ROSE 71 IN 4TH QUARTER OVERSEAS SALES CITED PROVIDENCE RI SUNBEAMOSTER CO POSTED A 71 INCREASE IN FOURTHQUARTER NET INCOME FROM THE YEARAGO PERIOD LED BY STRONG INTERNATIONAL SALES AND CONTINUED COST CUTTING THE HOUSEHOLD OUTDOOR AND SPECIALTY PRODUCTS COMPANY REPORTED FOURTHQUARTER NET OF 21 MILLION OR 23 CENTS A SHARE COMPARED WITH 123 MILLION OR 17 CENTS A SHARE IN THE YEARAGO QUARTER SUNBEAM SAID PERSHARE VALUES WERE AFFECTED BY THE COMPANY'S EQUITY OFFERING IN AUGUST WHICH BOOSTED THE NUMBER OF SHARES OUTSTANDING BY 32 SUNBEAM HAD FOURTHQUARTER SALES OF 2429 MILLION AN 11 INCREASE FROM SALES OF 2201 MILLION IN THE YEARAGO QUARTER FULLYEAR SALES TOTALED 9672 MILLION A 92 RISE FROM SALES OF 8856 MILLION THE PREVIOUS YEAR GROWTH WAS ACHIEVED ACROSS ALL OF THE COMPANY'S BUSINESS GROUPS SAID ROBERT H SETRAKIAN THE COMPANY'S CHIEF FINANCIAL OFFICER NOTING SALES INCREASES OF ABOUT 9 IN OUTDOOR PRODUCTS 11 IN SPECIALTY PRODUCTS 6 IN HOUSEHOLD PRODUCTS AND 17 IN THE COMPANY'S INTERNATIONAL DIVISION FROM LAST YEAR'S TOTALS HE SAID THE SALES GROWTH WAS DUE TO A RISE IN ITEMS SOLD NOT PRICE INCREASES ALONG WITH SALES GROWTH MR SETRAKIAN SAID THE COMPANY IS OPERATING WITH LOWER OVERHEAD DUE TO PLANT CLOSINGS SUNBEAM HAS CONSOLIDATED 10 FACILITIES AMOUNTING TO 11 MILLION SQUARE FEET SINCE MID1992 WHEN IT HAD 40 FACILITIES WITH 66 MILLION SQUARE FEET FOR THE YEAR SUNBEAM REPORTED PROFIT OF 483 MILLION OR 58 CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY NONCASH CHARGE OF 173 MILLION FOR POSTRETIREMENT HEALTH BENEFITS THAT COMPARED WITH NET OF 474 MILLION OR 61 CENTS A SHARE IN THE PREVIOUS YEAR SUNBEAM'S STOCK CLOSED AT 1875 A SHARE UP 150 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9302040021 930204 TECHNOLOGY IMMUNOGEN METHOD IMPROVES ANTIBODIES USED IN CANCER DRUGS CAMBRIDGE MASS IMMUNOGEN INC SAID THAT WITH BRITISH COLLABORATORS IT HAS DEVELOPED A NEW TECHNOLOGY TO MAKE IMPROVED MONOCLONAL ANTIBODIES FOR USE IN DRUGS FOR CANCER AND OTHER DISEASES MONOCLONAL ANTIBODIES ARE IMMUNE MOLECULES TAILORED TO SELECTIVELY STICK TO TUMOR CELLS OR OTHER CELLS IMMUNOGEN AND OTHER COMPANIES HAVE DEVELOPED CANCER DRUGS CONSISTING OF SUCH ANTIBODIES ATTACHED TO TOXIC MOLECULES BUT THE ANTIBODIES DERIVED FROM MOUSE CELLS TEND TO PROVOKE INCREASINGLY SEVERE IMMUNE REACTIONS WHEN REPEATEDLY INJECTED INTO HUMANS BECAUSE OF THEIR FOREIGN MOUSEDERIVED PARTS SUCH REACTIONS CAUSE SIDE EFFECTS AND LIMIT THE NUMBER OF TIMES THE DRUGS CAN BE INJECTED IMMUNOGEN SAID THAT WITH ANTHONY REES AT THE UNIVERSITY OF BATH ENGLAND IT HAS DEVELOPED A NEW WAY TO HUMANIZE SUCH ANTIBODIES SO THEY ARE LESS LIKELY TO PROVOKE IMMUNE REACTIONS IN PEOPLE THE METHOD CALLED RESURFACING INVOLVES CHANGING ONLY A FEW CRUCIAL AMINO ACIDS OR PROTEIN BUILDING BLOCKS IN THE ANTIBODY MOLECULES THE ONES THAT STICK OUT AND APPEAR MOST LIKELY TO TRIGGER UNDESIRED IMMUNE REACTIONS THE FACT THAT LITTLE IS CHANGED BY THIS MOLECULAR RESCULPTING ENABLES THE ANTIBODIES TO RETAIN THE SAME ABILITY TO SELECTIVELY TARGET TUMOR CELLS AS ANTIBODIES THAT HAVEN'T BEEN ALTERED BY THE TECHNIQUE THE COMPANY ADDED SUCH HUMANIZED ANTIBODIES HAVEN'T YET BEEN TESTED BY INJECTION INTO PATIENTS HENCE MAJOR QUESTIONS REMAIN ABOUT WHETHER THEY WILL WORK AS INTENDED IMMUNOGEN HOPES TO BEGIN SUCH TESTS WITHIN A YEAR OR SO SAID A SPOKESMAN THE COMPANY ADDED THAT IT HAS FILED FOR A US PATENT ON THE TECHNIQUE WHICH IT SAID COULD HAVE BROAD APPLICATION IN DEVELOPING ANTIBODYBASED DRUGS 9302040020 930204 NORWEST AGREES TO PAY CITICORP 58 MILLION FOR CITIBANK ARIZONA MINNEAPOLIS REFLECTING THE CHANGING FORTUNES OF THE BANKING INDUSTRY NORWEST CORP A ONCE HUMBLE REGIONAL BANKING CONCERN AGREED TO BUY THE ARIZONA BANKING BUSINESS OF CITICORP WHICH HAS BEEN SELLING ASSETS TO RECOVER FROM A DISASTROUS LENDING SPREE NORWEST SAID IT WOULD PAY 58 MILLION TO CITICORP NEW YORK AS A PREMIUM FOR THE NEARLY 2 BILLION IN DEPOSITS IT WILL TAKE OVER IN 59 ARIZONA LOCATIONS CITICORP WILL KEEP SOME LOWERQUALITY LOANS THE ACQUISITION IS PART OF A BIG EXPANSION BEYOND NORWEST'S UPPER MIDWEST ROOTS NORWEST WITH TOTAL ASSETS OF 446 BILLION HOPES TO USE THE CITIBANK ARIZONA OPERATION AS A BASE TO EXPAND FURTHER IN THE STATE CITICORP WAS BADLY BRUISED IN ARIZONA IT ONLY RECENTLY POSTED A MODERATE PROFIT FROM CITIBANK ARIZONA AFTER ENTERING THE MARKET IN 1986 BY ACQUIRING GREAT WESTERN BANK & TRUST AND THEN LATER UNITED BANK OF ARIZONA THE BANK HURT BY BAD REAL ESTATE LOANS LOST MORE THAN 190 MILLION BEFORE TURNING A PROFIT AND LAST FALL SOLD ITS 22STORY OFFICE TOWER HEADQUARTERS IN PHOENIX FOR 228 MILLION CITICORP SAID THE SALE WOULD HAVE NO MATERIAL EFFECT ON ITS BALANCE SHEET BUT WOULD HELP BOOST SLIGHTLY ITS CAPITAL TO ASSETS RATIO AN IMPORTANT INDICATOR OF A BANK'S HEALTH GENERALLY REGIONAL BANKS THAT HAVE KEPT TO CONSUMER AND SMALLER BUSINESS LENDING HAVE PERFORMED WELL IN RECENT YEARS PARTICULARLY IN THE CURRENT ENVIRONMENT OF LOW INTEREST RATES WHICH GIVES THEM HEFTY MARGINS BETWEEN WHAT THEY PAY ON DEPOSITS AND WHAT THEY CHARGE ON LOANS SOCALLED MONEY CENTER BANKS HAVE SUFFERED FROM LOANS TO REAL ESTATE DEVELOPERS AND LEVERAGED BUYOUTS 9302040019 930204 ALLTEL TO PAY CASH SWAP PHONE LINES FOR A GTE OPERATION LITTLE ROCK ARK ALLTEL CORP AGREED TO PAY 440 MILLION AND SWAP 95000 TELEPHONE LINES IN ILLINOIS INDIANA AND MICHIGAN FOR GTE CORP'S GEORGIA TELEPHONE OPERATIONS AMOUNTING TO ABOUT 285000 LINES THE MOVE IS A CONTINUATION OF GTE'S EFFORTS TO IMPROVE BOTH ITS EFFICIENCY AND ITS BALANCE SHEET BY SELLING OFF PERIPHERAL OPERATIONS AT THE SAME TIME THE MUCH SMALLER ALLTEL HAS BEEN GROWING BY BUYING IN THE INCREASINGLY COMPETITIVE TELEPHONE AND CELLULAR INDUSTRY ALLTEL SAID THE SWAP ALLOWS IT TO EXIT THREE STATES AND CONSOLIDATE TWO REGIONAL OFFICES SOME JOBS WOULD BE ELIMINATED ALLTEL SAID BUT A SPOKESMAN WOULDN'T SPECIFY HOW MANY WE HAVE AND MUST CONTINUE TO PURSUE OPPORTUNITIES TO BECOME MORE EFFICIENT ALLTEL CHAIRMAN AND PRESIDENT JOE FORD SAID MORE BUYING BY ALLTEL WHICH REPORTED 21 BILLION IN SALES LAST YEAR ISN'T LIKELY SOON HOWEVER GIVEN THE SIZE OF THIS ONE THIS IS A LOT ON OUR PLATTER FOR NOW AN ALLTEL SPOKESMAN SAID GTE SAID THE TRANSACTION WAS CONSISTENT WITH ITS CLUSTERING AND STRENGTHENING OUR LOCALEXCHANGE PROPERTIES MORE IMPORTANT ANALYSTS SAID WAS THE 440 MILLION THE REAL BENEFIT TO GTE IS THEY DID GET THE CASH SAID ANALYST PAUL G ARAN OF COUNTY NATWEST USA THIS IS THE LATEST MOVE IN GTE'S PURSUIT TO STRENGTHEN ITS BALANCE SHEET ALLTEL WILL FINANCE THE 440 MILLION THROUGH A COMBINATION OF DEBT AND EQUITY IT SAID BUT THE DEAL ISN'T EXPECTED TO DILUTE EARNINGS THE COMPANY CURRENTLY HAS 45000 PHONE LINES IN GEORGIA GTE HAS 975 EMPLOYEES IN GEORGIA AND SERVES 110 TELEPHONE EXCHANGES GTE SAID IT WOULD PICK UP ALLTEL'S 330 EMPLOYEES IN THE THREE MIDWESTERN STATES GTE'S TELEPHONE UNIT HAD REVENUE OF 157 BILLION LAST YEAR AND ALREADY SERVES ALMOST TWO MILLION TELEPHONE LINES IN ILLINOIS INDIANA AND MICHIGAN IT HOPES TO COMPLETE THE ALLTEL DEAL IN THE THIRD QUARTER 9302040018 930204 ECONOMY AUTO SALES ROSE SHARPLY IN LATE JANUARY SELLING RATE IS THE HIGHEST IN MORE THAN 2 YEARS JAPANESE SHARE TUMBLES BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF DOMESTIC CARS SOARED IN LATE JANUARY TO THEIR HIGHEST LEVEL IN MORE THAN TWO YEARS FURTHER EVIDENCE THAT THE US ECONOMY IS PULLING OUT OF THE DOLDRUMS WHAT'S MORE JAPANESE MARKET SHARE FOR THE FULL MONTH OF JANUARY PLUNGED TO ITS LOWEST LEVEL IN TWO YEARS WITH PROTECTIONIST PRESSURES INCREASING IN DETROIT AND WASHINGTON JAPANESE MARKET SHARE TUMBLED TO 27 FROM 30 A YEAR EARLIER MAKING JAPAN'S SHARE OF US SALES THE LOWEST LEVEL SINCE JANUARY 1991 FORD MOTOR CO AND CHRYSLER CORP ACCOUNTED FOR ALL OF DETROIT'S GAINS GENERAL MOTORS CORP'S MARKET SHARE TOOK A TUMBLE LAST MONTH USBUILT CARS SOLD AT AN ANNUAL PACE OF 76 MILLION CARS UP FROM 65 MILLION FOR THE YEAREARLIER PERIOD AND THE HIGHEST RATE SINCE DECEMBER 1990 DOMESTICALLY PRODUCED TRUCKS SOLD AT AN ANNUAL RATE OF 48 MILLION VEHICLES UP FROM 37 MILLION A YEAR EARLIER I WOULDN'T SAY IT'S RAINING DOLLARS BUT PEOPLE ARE COMING IN AND THEY'RE BUYING CARS SAID STEVEN WOLF SALES MANAGER OF RIVER OAKS CHRYSLERPLYMOUTH IN HOUSTON OVERALL THE INDUSTRY SOLD 394212 VEHICLES IN THE FINAL 10 DAYS OF JANUARY UP 208 FROM THE YEAREARLIER PERIOD CAR SALES ROSE 16 WHILE TRUCK SALES SHOT UP 298 THERE'S NO DOUBT THE ECONOMY IS IMPROVING SAID ANALYST RONALD GLANTZ OF DEAN WITTER REYNOLDS INC MR GLANTZ ADDED HOWEVER THAT SOME OF THE LATEJANUARY STRENGTH PROBABLY STEMMED FROM A BIG INCREASE IN FLEET SALES WHICH SOMEWHAT DIMS THE LUSTER OF THE GAINS FOR ALL OF JANUARY THE INDUSTRY SOLD 897908 CARS AND LIGHT TRUCKS AN INCREASE OF 97 FROM A YEAR EARLIER CHRYSLER'S SHARE OF THE CAR MARKET SHOT UP TO 107 IN JANUARY FROM 85 DEALERS REPORTED STRONG SALES OF THE AUTO MAKER'S NEW LINE OF MIDSIZE SEDANS THE SOCALLED LH CARS CHRYSLER CAR SALES ROSE 315 WHILE ITS TRUCK SALES INCLUDING ITS POPULAR MINIVAN CLIMBED 317 FORD IMPROVED ITS CAR SHARE TO 235 FROM 21 IN JANUARY 1992 ITS CAR SALES ROSE 173 WHILE TRUCK SALES ROSE 158 THE NO 2 CAR MAKER SOLD 10493 THUNDERBIRDS FOR THE MONTH NEARLY THREE TIMES AS MANY CARS AS IT SOLD A YEAR EARLIER SALES OF THE BIG REARWHEELDRIVE COUPE HAVE BEEN RISING SIGNIFICANTLY SINCE OCTOBER WHEN FORD BEGAN SELLING A WELLEQUIPPED THUNDERBIRD NATIONWIDE FOR LESS THAN 16000 ABOUT 4000 BELOW THE PREVIOUS PRICE EARLIER FORD HAD CUT THE CAR'S PRICE ONLY IN CALIFORNIA FORD ALSO POSTED BIG SALES INCREASES FOR TWO NEW MODELS THE LINCOLN MARK VIII AND MERCURY VILLAGER HOWEVER SALES OF THE FORD TAURUS PLUNGED IN JANUARY FROM THEIR RECORD LEVEL IN DECEMBER WHEN THE COMPANY PUSHED DISCOUNTED LEASES TO DISPLACE THE HONDA ACCORD AS THE BESTSELLING CAR IN THE COUNTRY FORD SOLD 22387 TAURUSES LAST MONTH DOWN FROM 65324 IN DECEMBER GM'S SHARE OF THE CAR MARKET DECLINED TO 33 FROM 353 ITS CAR SALES DECLINED 25 WHILE ITS TRUCK SALES IMPROVED 181 THE BIG SALES SWINGS IN BOTH DIRECTIONS OCCURED AT GM'S CHEVROLET DIVISION WHICH SOLD 9533 FEWER CARS THAN A YEAR EARLIER BUT 11325 MORE TRUCKS ON THE CAR SIDE CHEVROLET'S SALES WERE DRAGGED DOWN BY PLUNGING SALES OF TWO IMPORTS THE GEO METRO AND GEO STORM ON THE TRUCK SIDE CHEVY BENEFITED FROM A 537 JUMP IN SALES FOR ITS FULLSIZE CK PICKUP TRUCK WHILE SALES OF ITS SUBURBAN OFFROAD VEHICLE NEARLY TRIPLED GM'S SATURN SUBSIDIARY SOLD 13136 CARS AN INCREASE OF 339 WHILE ITS BUICK AND CADILLAC DIVISIONS POSTED SALES DECLINES OF 69 AND 81 RESPECTIVELY HONDA MOTOR CO SAW ITS SALES DROP 20 HONDA SOLD 14620 ACCORDS IN JANUARY ITS LOWEST MONTHLY SALES OF THE MODEL SINCE 1985 ACCORD SALES PULLED AHEAD IN DECEMBER WHEN THE CAR MAKER USED HEAVY INCENTIVES IN AN UNSUCCESSFUL EFFORT TO RETAIN ITS CROWN AS THE TOPSELLING CAR IN THE US THE DEEP DROP IN JAPANESE MARKET SHARE APPEARS TO STEM FROM SEVERAL FACTORS INCLUDING THE DROP IN SALES OF THE ACCORD IN ADDITION JAPANESE AUTO MAKERS HAVE RAISED THEIR PRICES SIGNIFICANTLY IN THE PAST YEAR SO THAT COMPARABLE BIG THREE CARS GENERALLY ENJOY A SUBSTANTIAL PRICE ADVANTAGE BUYERS THAT WOULD HAVE BOUGHT JAPANESE CARS IN THE PAST ARE GOING BACK TO THE SHOWROOMS AND SEEING BIG PRICE INCREASES SAID CHRISTOPHER CEDERGREN MARKET ANALYST AT AUTOPACIFIC GROUP IN SANTA ANA CALIF DETROIT'S PRICE ADVANTAGE IN FACT MAY BECOME AN ISSUE IN THE DUMPING CASE THAT THE BIG THREE ARE PREPARING TO FILE AGAINST THE JAPANESE CAR COMPANIES AS EARLY AS NEXT WEEK DUMPING REFERS TO SELLING BELOW THE HOMEMARKET PRICE OR BELOW THE COST OF PRODUCTION BUT THE JAPANESE ARE SURE TO CITE THEIR PRICES RELATIVE TO DETROIT'S IN COMBATING ANY DUMPING FILING TOYOTA MOTOR CORP'S SHARE OF THE CAR MARKET DROPPED TO 85 FROM 96 NISSAN MOTOR CO BUCKED THE TREND BY INCREASING ITS CAR SHARE TO 57 FROM 49 BECAUSE OF STRONG SALES OF THE NEW NISSAN ALTIMA NOTE THERE WERE 25 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9302040017 930204 TECHNOLOGY STORAGETEK FORECASTS BREAKEVEN RESULTS FOR '93 IN SEC FILING LOUISVILLE COLO STORAGE TECHNOLOGY CORP IN A DOCUMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION SAID IT EXPECTS BREAKEVEN RESULTS FOR MOST OF THIS YEAR AND NOTED THAT IT MIGHT VIOLATE SOME CONDITIONS OF ITS CREDIT AGREEMENTS SOME ANALYSTS SAID THAT THE OUTLOOK CONTAINED IN A REGISTRATION STATEMENT FOR A 125 MILLION CONVERTIBLE PREFERRED STOCK OFFERING MAKES THE COMPANY'S PROSPECTS LOOK EVEN WORSE THAN IT HAD PREVIOUSLY INDICATED A SURVEY OF ANALYSTS BY FIRST CALL A UNIT OF THOMSON FINANCIAL NETWORKS PRODUCED AN AVERAGE ESTIMATE OF TWO CENTS A SHARE IN STORAGETEK'S FIRST QUARTER AND EIGHT CENTS A SHARE IN THE SECOND QUARTER BEYOND THAT EXPECTATIONS ROSE WITH AVERAGE ESTIMATES OF 19 CENTS AND 39 CENTS A SHARE FOR THE THIRD AND FOURTH QUARTERS BUT IN ITS REGISTRATION STATEMENT STORAGETEK SAID THAT REVENUE IS EXPECTED TO REMAIN LARGELY UNCHANGED IN 1993 AND THAT EARNINGS EXCLUDING A ONETIME ACCOUNTING BENEFIT IN THE FIRST QUARTER ARE EXPECTED TO BE BREAKEVEN FOR MOST OF THE YEAR BECAUSE OF INCREASED NEW PRODUCT DEVELOPMENT EXPENSES STORAGETEK OFFICIALS WOULDN'T COMMENT ON THE OUTLOOK CONTAINED IN THE DOCUMENT CITING THE QUIET PERIOD REQUIRED PRIOR TO A PUBLIC OFFERING IN THE FILING STORAGETEK ALSO SAID IT IS CURRENTLY IN COMPLIANCE WITH THE REQUIREMENTS OF ITS CREDIT AGREEMENT BUT WOULD BE IN DEFAULT IF IT INCURS TWO CONSECUTIVE QUARTERLY LOSSES ALTHOUGH THE COMPANY POSTED A LOSS IN THE FOURTH QUARTER IT IS EXPECTED TO BE PROFITABLE IN THE FIRST QUARTER OF THE CURRENT YEAR BECAUSE OF A 40 MILLION GAIN FROM A CHANGE IN ACCOUNTING FOR INCOME TAXES BUT THE COMPANY SAID THAT OTHER CONDITIONS OF ITS CREDIT AGREEMENT ARE IN DANGER OF BEING VIOLATED THE COMPANY SAID IT IS SEEKING CHANGES IN ITS DEBT COVENANT TO ENSURE THAT ITS CREDIT LINES REMAIN OPEN IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE COMPANY'S STOCK CLOSED AT 20375 A SHARE DOWN 175 9302040016 930204 WHAT'S NEWS BUSINESS AND FINANCE SOME CLINTON AIDES ARE RAISING THE POSSIBILITY OF INCREASING THE TOP TAX RATE ON HIGHINCOME PEOPLE BEYOND THE 36 THAT HE PROPOSED IN HIS CAMPAIGN THE PRESIDENT MEANWHILE IS UNLIKELY TO ACCEPT THE IDEA OF DIRECTLY LIMITING THE GROWTH OF SOCIAL SECURITY BENEFITS BUT HE STILL MIGHT CALL FOR UPPERINCOME RETIREES TO PAY MORE TAX STOCKS SURGED IN VERY HEAVY TRADING AS INVESTORS BET ON A STRONGER ECONOMY MOST STOCK INDEXES SET RECORDS WHILE THE DOW JONES INDUSTRIALS ROSE 4512 TO 337379 LESS THAN 40 POINTS SHY OF ITS HIGH BOND PRICES RALLIED SALES OF USMADE CARS SOARED IN LATE JANUARY TO THEIR HIGHEST LEVEL SINCE 1990 MEANWHILE THE SHARE OF THE US MARKET HELD BY JAPANESE COMPANIES HAS SHRUNK TO A TWOYEAR LOW GENERAL MOTORS' DEBT WAS DOWNGRADED BY S&P WHICH CITED THE COMPANY'S PENSION AND MEDICAL LIABILITIES BUT THE AUTO MAKER'S STOCK JUMPED 175 TO 39125 ON THE CAR SALES DATA ACCOUNTING RULE MAKERS VOTED TO REQUIRE BANKS TO VALUE MOST OF THE DEBT SECURITIES IN THEIR INVESTMENT PORTFOLIOS AT CURRENT MARKET PRICES SOME SEARS SHAREHOLDERS PLAN TO PUSH FOR A PROXY PROPOSAL THAT WOULD REQUIRE EDWARD BRENNAN CHAIRMAN AND CEO TO GIVE UP ONE OF HIS POSTS AT&T'S CHIEF ARCHITECT OF ITS SUCCESSFUL UNIVERSAL CREDIT CARD BUSINESS PAUL KAHN IS LEAVING THE COMPANY AFTER IT FAILED TO BACK HIS EFFORTS TO EXPAND INTO OTHER FINANCIAL PRODUCTS JAPAN'S CENTRAL BANK CUT ITS DISCOUNT RATE THURSDAY TO 25 MATCHING ITS RECORD LOW FROM 325 IN ANOTHER EFFORT TO REVIVE THE NATION'S ECONOMY THE AGRICULTURE DEPARTMENT RECEIVED THE FIRST CLAIM FOR PAYMENT UNDER US GOVERNMENT GUARANTEES OF GRAIN LOANS TAKEN OUT BY RUSSIA THE TREASURY LESSENED ITS RELIANCE ON LONGTERM BONDS AT ITS AUCTION NEXT WEEK AND IS STUDYING WHETHER TO MAKE FURTHER SUCH MOVES IN A BID TO LOWER THE GOVERNMENT'S FINANCING COSTS THE CHICAGO BOARD OF TRADE'S PLAN TO TAKE OVER NEW YORK'S COMMODITY EXCHANGE WAS CRITICIZED AT A MEETING OF HUNDREDS OF COMEX TRADERS RAISING DOUBT THAT THE DEAL WILL BE APPROVED SALOMON POSTED SURPRISINGLY SOLID FOURTHQUARTER RESULTS REVERSING A YEAREARLIER LOSS THE SECURITIES FIRM'S STOCK JUMPED 3 OR 8 TO 40 US TRANSPORTATION OFFICIALS RULED THAT JAPAN VIOLATED A BILATERAL ACCORD BY RESTRICTING UNITED AIRLINES FLIGHTS THE US THREATENED TO RETALIATE DELL STOCK SLID AGAIN FALLING 3125 OR 7 TO 41875 AFTER THE COMPUTER MAKER SAID THE SEC IS STILL LOOKING INTO THE COMPANY'S PAST CURRENCY TRADING EXXON NAMED LEE RAYMOND CHAIRMAN AND CHIEF EXECUTIVE EFFECTIVE APRIL 28 MOBIL MEANWHILE NAMED LUCIO A NOTO PRESIDENT PUTTING HIM IN LINE TO BE CHAIRMAN AND CEO FOKKER'S STOCK PLUNGED 24 ON NEWS THAT THE DUTCH AIRCRAFT MAKER IS SEEKING BACKUP FINANCING IN CASE ITS PLAN TO SELL A 51 STAKE TO GERMANY'S DEUTSCHE AEROSPACE FALLS THROUGH ALLIEDSIGNAL'S PROFIT SURGED 20 IN THE FOURTH QUARTER THE MAKER OF AUTO AND AEROSPACE PARTS RAISED ITS DIVIDEND AND PREDICTED HIGHER PROFIT FOR 1993 ITS STOCK ROSE 2875 TO 61875 NORTH AMERICAN INVESTORS BOUGHT A NET OF 489 BILLION OF JAPANESE STOCKS LAST YEAR WITH MOST OF THE BUYING SAID TO COME FROM US PENSION FUNDS THAT FOLLOW STRICT PORTFOLIO STRATEGIES ELECTROLUX CUT ITS DIVIDEND IN HALF CITING THREE CONSECUTIVE WEAK YEARS FOR THE SWEDISH APPLIANCE MAKER THE CUT IN THE ANNUAL PAYOUT WAS THE FIRST IN THE COMPANY'S 90YEAR HISTORY BONDS LEHMAN BROTHERS TREASURY INDEX 483617 UP 1671 COMMODITIES OIL 1993 A BARREL OFF SEVEN CENTS DOW JONES FUTURES INDEX 12315 UP 027 SPOT INDEX 12360 OFF 001 DOLLAR 12436 YEN OFF 029 16450 MARKS UP 00045 9302040015 930204 COMEX TRADERS PROTEST DEAL WITH CBOT BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL HUNDREDS OF SKEPTICAL TRADERS FROM NEW YORK'S COMMODITY EXCHANGE TURNED OUT TO CRITICIZE A CHICAGO BOARD OF TRADE PLAN TO TAKE OVER THE COMEX RAISING DOUBTS THAT THE DEAL WILL EVER BE APPROVED AT A MEETING WITH MORE THAN 700 COMEX TRADERS CBOT CHAIRMAN PATRICK H ARBOR AND COMEX CHAIRMAN DONNA REDEL WEATHERED A STORM OF QUESTIONS AND REBUKES ABOUT THEIR TENTATIVE AGREEMENT FOR THE CBOT THE WORLD'S LARGEST FUTURES EXCHANGE TO ACQUIRE THE COMEX THE FOURTHBIGGEST US FUTURES MARKET MANY IN THE FUTURES INDUSTRY HAVE PREDICTED THAT CONSOLIDATION OF US FUTURES EXCHANGES IS INEVITABLE BUT THE STANDINGROOM COMEX CROWD THAT JAMMED A NEW YORK HOTEL BALLROOM YESTERDAY SEEMED TO HAVE OTHER IDEAS WE DO NOT WANT TO SELL THE EXCHANGE SAID VINCENT ZUCCARELLI A COPPER TRADER AND FLOOR LEADER AT THE COMEX WE CERTAINLY DON'T WANT TO SELL THE EXCHANGE AS A LEVERAGED BUYOUT WHERE THE BOARD OF TRADE BUYS US WITH OUR OWN MONEY AMONG OTHER THINGS COMEX TRADERS ARE IRATE THAT THE AGREEMENT DOESN'T CALL FOR THE CBOT TO PAY ANYTHING FOR THE COMEX INSTEAD A TRUST FUND WOULD BE ESTABLISHED FROM COMEX REVENUES TO BUY OUT ANY COMEX TRADERS WHO WANT TO SELL THEIR MEMBERSHIPS IN THE EXCHANGE MR ZUCCARELLI LEADS ONE OF SEVERAL DISTINCT GROUPS OF COMEX TRADERS THAT ARE MOUNTING DRIVES TO DEFEAT THE CBOT'S TAKEOVER PROPOSAL ANOTHER GROUP WAS CIRCULATING A PETITION YESTERDAY CALLING FOR MS REDEL'S REMOVAL AS COMEX CHAIRMAN FOR NEGOTIATING THE TAKEOVER DEAL WITHOUT FIRST CONSULTING COMEX MEMBERS THERE'S A GREAT DEAL OF DISAPPOINTMENT AND ANGER THAT THE MEMBERSHIP WAS NOT BROUGHT INTO NEGOTIATIONS SAID HARRY DEMAREST A VETERAN GOLD FUTURES TRADER AT THE COMEX IN AN INTERVIEW BEFORE THE MEETING MS REDEL SAID SHE HAD TRIED TO BE RESPONSIVE TO THE COMEX'S NEEDS THE MOTIVATION FOR DOING ANYTHING IN TERMS OF CONSOLIDATION OR A MERGER IS TO BE ABLE TO BRING ADDITIONAL TRADING VOLUME AND TRADING OPPORTUNITIES TO THE MEMBERS SHE SAID I DON'T THINK I COULD HAVE BEEN MORE RESPONSIVE THE COMEX BEST KNOWN FOR ITS FUTURES AND OPTIONS CONTRACTS ON PRECIOUS METALS AND COPPER HAS SEEN ITS TRADING VOLUME DROP SHARPLY BECAUSE OF THE LACK OF INFLATION IN THE US ECONOMY EXECUTIVES AT THE EXCHANGE ARE LOOKING FOR WAYS TO CUT COSTS AND SHORE UP REVENUES THAT'S WHERE THE CBOT COMES IN THE THRIVING CHICAGO EXCHANGE HOME TO SUCH HIGHVOLUME FINANCIAL INSTRUMENTS AS TREASURYBOND FUTURES CONTRACTS IS PROMISING TO ASSUME MANY OF THE COMEX'S STAFFING AND CLEARING COSTS AND SUPPORT THE NEW YORK EXCHANGE IN OTHER WAYS THE DEAL IS SUBJECT TO APPROVAL BY TRADERS AT BOTH EXCHANGES WHILE CBOT TRADERS LIKE THE DEAL BECAUSE THEY THINK ITS TERMS ARE FAVORABLE FOR THEIR EXCHANGE MANY COMEX TRADERS HAVE OPPOSED IT FROM THE START SOME OF THOSE PRESENT AT YESTERDAY'S MEETING WERE CONFIDENT THAT THE DEAL WILL FAIL TO RECEIVE THE REQUIRED TWOTHIRDS APPROVAL BY THE COMEX'S 772 MEMBERS WE NEED 265 VOTES TO BLOCK THIS MR ZUCCARELLI SAID AND WE THINK 265 IS EASY TO GET IN AN INTERVIEW BEFORE YESTERDAY'S MEETING MR ARBOR SAID HIS CHIEF OBJECTIVE IN THE ATTEMPTED TAKEOVER IS TO ESTABLISH THE COMEX AS A SATELLITE EXCHANGE OF THE CBOT WHERE THE CHICAGO EXCHANGE CAN OFFER ITS CONTRACTS TO A NEW YORK AUDIENCE BUT HE ACKNOWLEDGED THAT WINNING APPROVAL FOR THE PLAN MAY BE IMPOSSIBLE IT'S TOUGH MR ARBOR SAID I WISH I HAD SOME ACES UP MY SLEEVE THE ONE STRONG CARD MR ARBOR DOES HOLD IS GROWING DISENCHANTMENT AMONG MANY COMEX TRADERS ABOUT THE DECLINING BUSINESS AT THEIR EXCHANGE FEWER OUTSIDE ORDERS FOR GOLD AND SILVER FUTURES CONTRACTS MEAN FEWER OPPORTUNITIES FOR THE FLOOR BROKERS WHO EARN THEIR LIVING FILLING THESE ORDERS AND FOR THE FLOOR TRADERS WHO TRY TO SCALP PROFITS BY TRADING AGAINST THEM ALTHOUGH THE CBOT DEAL ISN'T POPULAR AMONG COMEX TRADERS SOME OF THEM NEVERTHELESS BELIEVE THE TAKEOVER MAY BE NECESSARY TO ENSURE THE EXCHANGE'S LONGTERM SURVIVAL AT THIS POINT WE DO NEED SOME KIND OF MERGER BECAUSE OF THE DECLINE IN PRECIOUS METALS VOLUME SAID IRA S LEVINE A COPPER TRADER ON THE COMEX THE MERGER UNDER DISCUSSION WOULD RAISE THE COMEX'S PROFILE AND PROVIDE MORE PRODUCTS TO BE TRADED HE SAID SOME TRADERS INDICATED YESTERDAY THAT THEY MIGHT BE MORE WILLING TO VOTE FOR THE PLAN IF THE CBOT SWEETENED ITS OFFER PERHAPS BY PUTTING UP SOME MONEY OF ITS OWN OR BY MAKING CONTRACTUAL GUARANTEES TO KEEP THE COMEX OPEN AND IN NEW YORK FOR A SPECIFIED NUMBER OF YEARS BUT AFTER YESTERDAY'S MEETING MR ARBOR MADE IT CLEAR THAT THE BASIC TERMS OF THE AGREEMENT WON'T BE ALTERED THERE WILL BE SOME FINE TUNING IN THE FINAL DOCUMENT HE SAID BUT THE BASIC PARAMETERS ARE NONNEGOTIABLE HE SAID HE THINKS IT ISN'T NECESSARY FOR THE CBOT TO PUT UP ANY CASH IN THE TRANSACTION BECAUSE THE MERGER SHOULD RESULT IN MAJOR COST SAVINGS THAT WILL MAKE IT WORTHWHILE FOR BOTH EXCHANGES OTHER TRADERS WANT THE COMEX'S MS REDEL TO PURSUE POSSIBLE MERGERS WITH OTHER NEW YORK EXCHANGES RATHER THAN TURNING IT OVER TO A CHICAGO MARKET A GROUP OF COMEX MEMBERS HAVE APPROACHED THE NEW YORK MERCANTILE EXCHANGE TO SUGGEST THAT IT MAKE A COMPETING BID FOR COMEX SO FAR THERE HAS BEEN NO RESPONSE FROM THE MERC TWO YEARS AGO COMEX REJECTED A PROPOSED MERGER WITH THE NEW YORK MERC WHICH IS BEST KNOWN FOR ITS FUTURES AND OPTIONS CONTRACTS BASED ON PETROLEUM PRODUCTS NOT ALL THE TRADERS PRESENT AT YESTERDAY'S MEETING IN DOWNTOWN MANHATTAN OPPOSED THE CBOT PLAN SOME IN THE MEETING ROOM WHICH WAS CLOSED TO REPORTERS VOICED SUPPORT FOR PROVISIONS OF THE DEAL THAT CALL FOR A TRUST FUND ENABLING COMEX MEMBERS TO SELL THEIR SEATS BUT THE PREVAILING SENTIMENT AT THE MEETING APPEARED TO BE NEGATIVE JAN MARKS A SILVER FUTURES TRADER SEEMED TO SUM UP THE FEELINGS OF HIS COMEX COLLEAGUES BY ASSERTING THAT THE CBOT DEAL WHATEVER ITS MERITS WON'T DO ANYTHING TO CHANGE THE LOWINFLATION CLIMATE THAT HAS SAPPED DEMAND FOR GOLD AND OTHER PRECIOUS METALS WHAT THE EXCHANGE NEEDS MR MARKS SAID IS A BUSY MARKET AND YOU CAN GET THAT ACTION IF GOLD TURNS AROUND YOU DON'T SEE CHICAGO OFFERING US ANYTHING THAT WILL TURN THINGS AROUND 9302040014 930204 CREDIT MARKETS TREASURY PRICES RISE IN REACTION TO US DECISION TO PARE SIZE OF NEXT WEEK'S REFUNDING AUCTIONS BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY PRICES ROSE AS MUCH AS 1/2 POINT IN REACTION TO AN ANNOUNCEMENT THAT THE GOVERNMENT WOULD BE SCALING BACK ON THE SIZE OF THE NEXT QUARTERLY REFUNDING AUCTION SCHEDULED FOR NEXT WEEK MANY IN THE MARKETS HAD BEEN EXPECTING THE TREASURY TO ALTER THE AUCTIONS BY ISSUING FEWER 30YEAR BONDS AND MORE 10YEAR NOTES AND THREEYEAR NOTES BUT THE TREASURY CHOSE TO CUT THE SIZE OF BOTH THE 30YEAR BOND AUCTION AND THE 10YEAR NOTE AUCTION WHILE LEAVING THE AMOUNT OF THREEYEAR NOTES UNCHANGED AND PUTTING THE TOTAL TO BE SOLD AT 355 BILLION DOWN FROM 37 BILLION IN THE NOVEMBER AUCTIONS THE TREASURY SAID THAT IT WOULD SELL 155 BILLION OF THREEYEAR NOTES NEXT TUESDAY 1075 BILLION OF 10YEAR NOTES NEXT WEDNESDAY DOWN 500 MILLION FROM THE NOVEMBER AUCTION AND 925 BILLION IN 30YEAR BONDS NEXT THURSDAY DOWN 1 BILLION WHILE SOME HAD PREDICTED A CUT AS LARGE AS 2 BILLION IN THE ISSUANCE OF 30YEAR BONDS THE CHANGE FINALLY MADE BY THE TREASURY WAS WITHIN THE EXPECTATIONS OF MANY BOND TRADERS BY REDUCING THE AMOUNT OF NEW ISSUANCE THE VALUE OF BONDS ALREADY OUTSTANDING INCREASES YESTERDAY FOR EXAMPLE THE 30YEAR BOND ROSE 1/2 POINT OR 500 FOR A BOND WITH 1000 FACE VALUE AS THE YIELD DROPPED TO 720 FROM 724 ON TUESDAY MEANWHILE ISSUANCE IN THE MUNICIPAL BOND MARKET REACHED A RECORD IN JANUARY ACCORDING TO SECURITIES DATA CO BUT UNDERWRITERS SAY THAT THE FLOOD OF NEW MUNICIPAL BONDS IS LIKELY TO SLOW TO A TRICKLE IN THE COMING WEEKS ONE NEW MUNICIPAL DEAL YESTERDAY FROM HOMESTEAD FLA MAY HAVE BEEN THE FIRST TO BE USED TO MEET INSURANCE PAYMENTS SAID UNDERWRITERS IN THE CORPORATE MARKET BONDS OF GENERAL MOTORS CORP ENDED LITTLE CHANGED DESPITE A ONENOTCH DOWNGRADE IN THE AUTOMAKER'S DEBT BY STANDARD & POOR'S CORP SOME ANALYSTS HOWEVER ARE WORRIED THAT THE DOWNGRADE WILL HAVE A NEGATIVE EFFECT ON THE SHORTTERM COMMERCIAL PAPER MARKET AFTER WEEKS OF SPECULATION THAT THE FEBRUARY REFUNDING WOULD INCLUDE A MAJOR REDUCTION IN THE SIZE OF THE LONGBOND AUCTIONS MANY IN THE MARKET HAD BEGUN EXPECTING SMALLER CUTS ALONG THE LINES OF 500 MILLION WHEN THE TREASURY ANNOUNCED THE SIZE OF THE REFUNDING 30YEAR BOND PRICES SEESAWED INITIALLY BUT ENDED SHARPLY HIGHER BY THE END OF THE DAY THEY DID GIVE A TOKEN REDUCTION IN THE BOND SAID KEVIN FLANAGAN A MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC I THINK IT WAS MILDLY SUPPORTIVE ACCORDING TO MR FLANAGAN THE TREASURY IS STILL GOING TO CONSIDER THE ISSUE OF SHIFTING THE BORROWING MIX TO SHORTERDATED SECURITIES FOR THE REFUNDING IN MAY AT THE NEWS CONFERENCE AT WHICH THE REFUNDING WAS ANNOUNCED THE TREASURY DEPARTMENT LEFT OPEN THE QUESTION OF SHIFTING THE BORROWING MIX AWAY FROM LONGERTERM SECURITIES AS A MEANS OF REDUCING LONGTERM INTEREST RATES AND CUTTING THE COST OF FINANCING THE BUDGET DEFICIT DEBORAH DANKER ACTING ASSISTANT SECRETARY FOR DOMESTIC FINANCE TOLD REPORTERS THAT THE ISSUE REQUIRES MORE STUDY AND THAT THE TREASURY WILL BE DOING A THOROUGH REVIEW OF THE BORROWING MIX WHICH THEY HOPE WILL BE COMPLETED IN TIME FOR THE MAY REFUNDING BY NOT MAKING A NEW POLICY STATEMENT THE TREASURY APPEARED TO TAKE THE ROUTE THAT WOULD FOR THE TIME BEING SATISFY BOTH THE MARKET'S DEMAND FOR A SMALLER BOND ISSUANCE AND THE DEMANDS OF THOSE WHO ARGUED AGAINST A HASTY DECISION IT IS CLEAR THAT TREASURY OPTED FOR A MIDDLEOFTHEROAD APPROACH SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS ALTHOUGH THE BORROWINGMIX ISSUE REMAINS OPEN FOR FURTHER SPECULATION IN THE SPRING THE ANNOUNCEMENT YESTERDAY TEMPORARILY REMOVES ONE OF THE QUESTIONS THAT HAD BEEN NAGGING THE MARKET IT REMOVED A MAJOR SOURCE OF UNCERTAINTY AND AS SUCH IT WAS RECEIVED WITH RELIEF SAID MR KARYDAKIS BUT ANOTHER SOURCE OF UNCERTAINTY REMAINS FRIDAY'S EMPLOYMENT REPORT THE REPORT WILL BE A REFERENDUM FOR THE NEW ADMINISTRATION FOR THE FEDERAL RESERVE AND FOR THE FINANCIAL MARKETS SAID MR FLANAGAN OF DEAN WITTER BECAUSE IT WILL OFFER THE FIRST OFFICIAL LOOK AT THE STATE OF THE ECONOMY SINCE PRESIDENT CLINTON WAS INAUGURATED IT WILL SET THE TONE FOR THE REST OF THE QUARTER SAID MR FLANAGAN WHO PREDICTS A RISE OF 125000 IN NONFARM PAYROLLS AS THE UNEMPLOYMENT RATE MOVES DOWN SLIGHTLY TO 72 FROM 73 IN DECEMBER IN WHENISSUED TRADING LATE YESTERDAY THE 30YEAR BOND YIELDED 718 THE 10YEAR NOTE YIELDED 639 AND THE THREEYEAR NOTE YIELDED 479 SO FAR THIS YEAR THE MUNICIPAL BOND MARKET HAS BEEN WHITEHOT SAY UNDERWRITERS FEARS THAT PRESIDENT CLINTON WILL INCREASE TAXES A WAVE OF REDEMPTIONS OF OLDER HIGHERYIELDING DEBT AND A RALLYING TREASURY MARKET WERE ALL FACTORS CONTRIBUTING TO THE HEALTHY INVESTOR DEMAND THAT MET A FLOOD OF 174 BILLION OF SECURITIES MATURING IN 13 MONTHS OR LONGER ACCORDING TO SECURITIES DATA CO THAT ECLIPSES THE PREVIOUS MONTHLY RECORD OF 149 BILLION IN JANUARY OF LAST YEAR UNDERWRITERS SAID THE FLOOD IS LIKELY TO SLOW IN THE COMING WEEKS SINCE MANY CITIES AND STATES WITH INTENTIONS TO REFINANCE LARGE AMOUNTS OF OLDER HIGHERYIELDING DEBT HAVE ALREADY DONE SO AS INVESTORS SCRAMBLE TO FIND NEW MUNICIPAL BONDS THIS MONTH SAID UNDERWRITERS PRICES COULD BE PUSHED A BIT HIGHER MORE THAN 10 BILLION OF THE MONTH'S ISSUANCE WAS EARMARKED TO REFUND OR REPLACE OLDER HIGHERYIELDING BONDS ACCORDING TO THE BOND BUYER A TRADE PUBLICATION ITS INDEX OF 40 LONGTERM MUNICIPAL BONDS SHOWS THAT THE AVERAGE YIELD HAD DROPPED TO 631 AS OF YESTERDAY FROM 638 IN EARLY JANUARY WHILE THE AVERAGE PRICE HAD RISEN NEARLY 1/2 POINT TO 98 16/32 IT HAS BEEN A VERY GOOD MONTH SAID WILLIAM K LUDOLPH MANAGER OF MUNICIPAL UNDERWRITING AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP BUT YIELDS WILL NEED TO DROP FURTHER FOR THE DELUGE TO CONTINUE HE SAID THE NEXT GROUP OF REFUNDINGS COULD BE SMALLER HE ADDED YESTERDAY INVESTORS SNAPPED UP AN UNUSUAL OFFERING OF 4724 MILLION OF SPECIAL INSURANCE ASSESSMENT REVENUE BONDS FROM HOMESTEAD FLA THE BONDS ARE FOR THE HURRICANE ANDREW COVERED CLAIMS ASSISTANCE PROGRAM APPROXIMATELY 366 MILLION OF THE PROCEEDS FROM THE OFFERING WILL BE USED TO MAKE PAYMENTS TO FLORIDA CLAIMANTS AND POLICYHOLDERS WHOSE INSURANCE COMPANIES BECAME INSOLVENT AFTER HURRICANE ANDREW IN AUGUST HOMESTEAD WHICH IS 30 MILES SOUTH OF MIAMI WAS HIT PARTICULARLY HARD BY THE HURRICANE MUNICIPAL BOND SPECIALISTS COULDN'T RECALL ANOTHER MUNICIPAL OFFERING IN WHICH PROCEEDS WERE USED TO MEET INSURANCE PAYMENTS DEMAND FOR THE BONDS WAS SO HEAVY THAT A BEAR STEARNS & CO GROUP WAS ABLE TO LOWER THE YIELDS FOR SOME BONDS BY 005 TO 015 PERCENTAGE POINT THE OFFERING WAS ALL SOLD BEAR STEARNS SAID FOLLOWING THE REPRICING YIELDS RANGED FROM 245 IN SEPTEMBER 1993 TO 538 IN MARCH 2003 INITIALLY YIELDS RANGED FROM 260 IN 1993 TO 545 IN 2003 THE BONDS WHICH ARE NONCALLABLE ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND S&P PRICES OF HIGHGRADE CORPORATE BONDS ENDED MODESTLY HIGHER WHILE INVESTORS HOLDING BONDS OF GENERAL MOTORS AND ITS UNITS SHRUGGED OFF NEWS THAT THE AUTOMAKER'S DEBT HAD BEEN DOWNGRADED INTERMEDIATETERM CORPORATES WERE LITTLE CHANGED WHILE LONGERDATED ISSUES EDGED UP 1/4 TO 3/8 POINT TRADERS SAID SPREADS BETWEEN YIELDS ON CORPORATE BONDS AND TREASURYS WERE UNCHANGED FROM TUESDAY JUNK BONDS ENDED FLAT TO UP 1/8 IN LIGHT TRADING GENERAL MOTORS ACCEPTANCE CORP 75 NOTES DUE 1995 WERE QUOTED AT 103 1/4 TO YIELD 615 UNCHANGED FROM TUESDAY THE ISSUE'S SPREAD OVER TREASURYS REMAINED UNCHANGED AS WELL TRADERS SAID S&P KNOCKED DOWN GM'S SENIOR DEBT TO TRIPLEBPLUS FROM SINGLEAMINUS THE RATING AGENCY ALSO LOWERED ITS RATINGS ON GM'S PREFERRED AND PREFERENCE STOCK TO TRIPLEB FROM TRIPLEBPLUS S&P SAID IT ALSO LOWERED THE COMMERCIAL PAPER RATINGS OF FINANCING UNIT GMAC AND VARIOUS OVERSEAS SUBSIDIARIES TO SINGLEA2 FROM SINGLEA1 TRADERS SAID THE DOWNGRADE WAS EXPECTED S&P PUT GM AND ITS UNITS ON ITS CREDITWATCH NOV 2 1992 THE DOWNGRADE FOLLOWS A SIMILAR ACTION NOV 24 WHEN MOODY'S DROPPED ITS RATINGS ON GM TO BAA1 FROM SINGLEA2 WHILE S&P'S MOVE DID NOT SEEM TO HAVE A BIG EFFECT ON PRICES OF GM BONDS ANALYSTS HAVE SAID THAT PRICES OF GM'S SHORTTERM COMMERCIAL PAPER ARE LIKELY TO DROP SHARPLY DUE TO WEAKER DEMAND THEY SAY THAT THE S&P DOWNGRADE COULD HAVE A NEGATIVE EFFECT ON THE ENTIRE COMMERCIAL PAPER MARKET BECAUSE OF THE COMPANY'S POSITION AS ONE OF THE TOP ISSUERS OF COMMERCIAL PAPER MONEY MARKET FUNDS FOR EXAMPLE ARE LIKELY TO END UP PAYING MORE FOR SOCALLED TOPTIER CREDITS THESE FUNDS WHICH INVEST IN HIGHLY LIQUID SHORTTERM SECURITIES MAY NOW BE LIMITED IN THE AMOUNT OF GM PAPER THEY CAN PURCHASE BECAUSE OF GOVERNMENT REGULATIONS RESTRICTING THEIR PURCHASES OF LOWERRATED PAPER PRICES OF MORTGAGE SECURITIES ENDED HIGHER FURTHER TIGHTENING THEIR YIELD SPREADS OVER TREASURYS IN SECONDARY TRADING 75 ISSUES FROM ALL THREE AGENCIES ENDED 7/32 HIGHER GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED AT 101 28/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED AT 101 23/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED AT 101 16/32 DON SEGALAS HEAD OF THE MORTGAGE TRADING DESK AT TUCKER ANTHONY INC SAID DEMAND HAS ESCALATED NOW THAT COLLATERAL PRICES HAVE BECOME RELATIVELY ATTRACTIVE MORTGAGE SECURITIES PRICES HAD LOST GROUND RECENTLY ON FEARS OF RISING PREPAYMENTS AND RECORD ISSUANCE OF CORPORATE DEBT THAT LURED SOME BUYERS AWAY FROM THE MARKET BUT NOW THAT CORPORATE SUPPLY IS BEING TAKEN OFF DEALER HANDS PEOPLE ARE REALIZING THAT MORTGAGE SECURITIES ARE CHEAP HE SAYS ALSO SUPPORTING MORTGAGE SECURITIES PRICES IS THE CONTINUING DEMAND FOR COLLATERAL TO BACK NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS YESTERDAY FANNIE MAE ANNOUNCED A NEW 500 MILLION SERIES 1993G9 DEAL THAT WAS BACKED BY GINNIE MAE 8 ISSUES AND A BIG INCREASE OF ITS SERIES 199321 OFFERING TO 11 BILLION FROM 300 MILLION THAT ISSUE WAS BACKED BY FANNIE MAE 8 ISSUES TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9302040013 930204 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 BAXTER INTERNATIONAL INC 200 MILLION OF NOTES DUE FEB 15 2008 PRICED AS 7 1/4 AT 99728 TO YIELD 728 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 085 POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP DI GIORGIO CORP 100 MILLION OF SENIOR NOTES DUE 2003 PRICED AT PAR TO YIELD 12 THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P IT WILL BE SOLD THROUGH UNDERWRITERS LED BY BT SECURITIES CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE FEB 12 2000 PRICED AS 6 3/8 AT 99916 TO YIELD 639 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO NORTHERN ILLINOIS GAS CO 75 MILLION THREEPART ISSUE OF FIRST MORTGAGE BONDS WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO THE FIRST PART CONSISTING OF 25 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 1997 WAS PRICED AS 5 1/2 AT 9960 TO YIELD 5613 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0283 POINT ABOVE THE TREASURY 675 NOTE DUE FEBRUARY 1997 THE SECOND PART CONSISTING OF 25 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 1998 WAS PRICED AS 5 7/8 AT 9950 TO YIELD 5992 THE ISSUE NONCALLABLE FOR FOUR YEARS WAS PRICED AT A SPREAD OF 0375 POINT ABOVE THE TREASURY FIVEYEAR NOTE THE THIRD PART CONSISTING OF 25 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 1999 WAS PRICED AS 6 1/4 AT 99635 TO YIELD 6324 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 039 POINT ABOVE THE TREASURY 8875 NOTE DUE FEBRUARY 1999 THE THREE TRANCHES ARE RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P CONNECTICUT HOUSING FINANCE AUTHORITY 1408 MILLION OF 1993 SERIES B HOUSING MORTGAGE FINANCE PROGRAM BONDS PRICED BY A PAINEWEBBER INC GROUP TO YIELD FROM 435 IN 1997 TO 630 IN 2024 MOODY'S AND S&P ARE EXPECTED TO GIVE THE OFFERING A DOUBLEA RATING APPLIED MAGNETICS CORP 475 MILLION COMMON SHARES PRICED AT 1350 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MATHSOFT INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC PROXIMA CORP INITIAL OFFERING OF TWO MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC ROCKY SHOES & BOOTS INC INITAL PUBLIC OFFERING OF 165 MILLION SHARES OF COMMONS STOC PRICED AT 10 A SHARE THROUGH UNDERWRITERD LED BY JC BRADFORD & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G9 IS BACKED BY 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS EXPORT DEVELOPMENT CORP OF CANADA 300 MILLION CANADIAN DOLLARS OF 7 1/2 EUROBONDS DUE MARCH 4 1996 AT ISSUE PRICE 1010975 VIA PARIBAS CAPITAL MARKETS LTD OFFERED INITIALLY AT FIXED PRICE 9991 TO YIELD 753 MARGIN 035 POINT ABOVE CANADIAN GOVERNMENT'S 6 BONDS DUE FEBRUARY 1996 FEES 1 3/8 CITY OF MONTREAL 125 MILLION CANADIAN DOLLARS OF 9 EUROBONDS DUE MARCH 17 2003 AT ISSUE PRICE 100575 VIA SCOTIA MCLEOD INC OFFERED INITIALLY AT 9895 TO YIELD 916 ANNUALLY MARGIN 1003 POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND FEES 2 ABBEY NATIONAL TREASURY SERVICES UK 100 MILLION OF FLOATINGRATE EURONOTES DUE MARCH 15 1996 AT ISSUE PRICE PAR VIA GOLDMAN SACHS INTERNATIONAL INTEREST PAID SEMIANNUALLY AT 12 3/8 MINUS THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR STERLING GUARANTOR ABBEY NATIONAL PLC FEES 020 POINT AS EKSPORTFINANS NORWAY 100 MILLION OF REVERSE FLOATINGRATE EURONOTES DUE MARCH 15 1996 VIA GOLDMAN SACHS INTERNATIONAL NOTES PAY 12 3/8 MINUS SIXMONTH LIBOR FOR STERLING FIRST COUPON SET AT 7 FIXED INITIAL OFFER PRICE PAR FEES 020 HALIFAX BUILDING SOCIETY UK 100 MILLION OF REVERSE FLOATINGRATE EURONOTES DUE MARCH 1996 VIA UBS PHILLIPS & DREW NOTES PAY INTEREST SEMIANNUALLY AT 12 3/8 MINUS SIXMONTH LIBOR FOR STERLING FIRST COUPON SET AT 7 FIXED INITIAL OFFER PRICE PAR FEES 020 EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION MARKS OF 6 5/8 EUROBONDS DUE FEB 25 1998 AT ISSUE PRICE 10110 VIA BAYERISCHE HYPOTHEKEN UND WECHSELBANK AG OFFERED INITIALLY AT 9948 TO YIELD 675 MARGIN 005 POINT ABOVE EQUIVALENT GERMAN GOVERNMENT BOND FEES 1 5/8 IMI INTERNATIONAL CAYMAN ISLANDS ITALIAN PARENT 150 BILLION LIRE OF 12 3/8 EUROBONDS DUE MARCH 16 1998 AT ISSUE PRICE 101825 VIA IMI LUX SA YIELD 1239 AFTER DEDUCTING FULL COMMISSIONS GUARANTOR ISTITUTO MOBILIARE ITALIANO FEES 1 7/8 BAYERISCHE VEREINSBANK AG GERMANY 75 MILLION OF FLOATINGRATE EURONOTES DUE JAN 29 2003 VIA KIDDER PEABODY INTERNATIONAL NOTES PAY INTEREST AT 1/8 POINT BELOW LIBOR INITIAL PRICE IS 9970 ISSUE WILL TRADE INTERCHANGEABLY WITH 100 MILLION OF IDENTICAL OUTSTANDING NOTES FEES NOT DISCLOSED 9302040012 930204 LAW LEGAL BEAT LAW FIRMS ARE FACING NEW TAXES BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DON'T KILL ALL THE LAWYERS QUITE YET IT MAY BE WORTH TAXING THEM FIRST AT LEAST THAT'S WHAT SOME HARDPRESSED STATE AND LOCAL GOVERNMENTS ARE INCREASINGLY ATTEMPTING FOR INSTANCE THE MAYOR OF THE DISTRICT OF COLUMBIA SHARON PRATT KELLY PROPOSED TO CLOSE IN PART A BILLIONDOLLAR BUDGET GAP THAT THE CITY IS FACING BY LEVYING A TAX ON WASHINGTON LAWYERS AND OTHER PROFESSIONALS SIMILAR TAXES HAVE BEEN CONSIDERED RECENTLY WITH VARYING SUCCESS IN CALIFORNIA MASSACHUSETTS NEW JERSEY FLORIDA AND ARKANSAS THE PROPOSED WASHINGTON TAX EQUAL TO 09 OF GROSS RECEIPTS IS STILL FAR FROM BECOMING LAW THE LEGAL COMMUNITY HERE IS ALREADY MOBILIZING AGAINST IT AND LAWYERS MANAGED TO WATER DOWN A SIMILAR TAX PROPOSAL LAST YEAR YET IF SUCCESSFUL THE PLAN WOULD END UP EXTRACTING MILLIONS OF DOLLARS FROM MAJOR LAW FIRMS AND POSSIBLY BECOME A PRECEDENT FOR THE GROWING NUMBER OF FISCAL ASSAULTS ON THE LEGAL PROFESSION'S DEEP POCKETS AROUND THE COUNTRY WHAT YOU'RE SEEING IS THAT THE LEGAL PROFESSION HAS BECOME BIGGER AND BIGGER BUSINESS AND CITIES AND COUNTIES IN SEARCH OF TAX DOLLARS ARE STARTING TO TAKE NOTICE SAYS BENJAMIN FIERRO GENERAL COUNSEL OF THE MASSACHUSETTS BAR ASSOCIATION WHICH FOUGHT A SEPARATE EXCISE TAX ON PROFESSIONALS IN THAT STATE THREE YEARS AGO CERTAINLY TAXING A WIDELY DISLIKED PROFESSION HAS POPULAR APPEAL AND AT A TIME WHEN PERSONAL SACRIFICE IS IN THE AIR PUTTING LAWYERS FIRST IN LINE ALSO MAKES ECONOMIC SENSE SOME OBSERVERS MAINTAIN DISTRICT OFFICIALS FOR INSTANCE ARGUE THAT THE BIG WASHINGTON LAW FIRMS HAVE FOR YEARS BEEN GETTING A FREE RIDE WHEN IT COMES TO LOCAL SERVICES BECAUSE MANY OF THEIR PARTNERS LIVE IN THE SUBURBS BEYOND THE REACH OF DISTRICT TAXING AUTHORITIES WHILE THE CITY'S FINANCES HAVE DETERIORATED IN RECENT YEARS THE WASHINGTON FIRMS HAVE GENERALLY FLOURISHED PEOPLE WANT TO BE IN DC BECAUSE OF THEIR ABILITY TO EARN SUBSTANTIAL AMOUNTS OF INCOME IN THAT ARENA SAYS A SPOKESMAN FOR MAYOR KELLY IT IS ONLY FAIR THAT WE ARE ABLE TO RECOUP A REASONABLE PERCENTAGE OF THAT AS A COST OF RUNNING THE CITY WASHINGTON LAWYERS SAY THEY ALREADY DO MORE THAN THEIR FAIR SHARE IF ONLY BY THEIR VERY OWN CONSIDERABLE PRESENCE WASHINGTON HAS MORE LAWYERS PER CAPITA THAN ANY PLACE IN THE COUNTRY AND SOME BAR LEADERS CONTEND THAT THE CITY RISKS SHOOTING ITSELF IN THE FOOT IF IT PROCEEDS WITH NEW MAJOR TAXES ON ONE OF THE BIGGEST EMPLOYERS IN TOWN SOME WOULD SIMPLY PULL STAKES AND FLEE TO THE SUBURBS SMALL FIRMS AND SPECIALTY FIRMS REALLY DO NOT NEED TO BE IN THE DISTRICT AND AMONG LARGER FIRMS IT IS VERY EASY TO SHIFT WORK FROM ONE PLACE TO ANOTHER SAYS JAMIE GORELICK PRESIDENT OF THE DISTRICT BAR YOU JUST PUT THE BODIES WHERE THE TAXES ARE LOWER FOR YEARS DISTRICT OFFICIALS HAVE BEEN LOOKING FOR WAYS TO TAX THE INCOME OF NONRESIDENT PROFESSIONALS BUT HAVE BEEN BLOCKED IN CONGRESS OR THE COURTS LAST YEAR MAYOR KELLY PROPOSED A SIMILAR GROSSRECEIPTS TAX ON LAWYERS BUT EVENTUALLY AGREED TO A COMPROMISE WHEREBY THE CITY BEGAN CHARGING LAWYERS A 250 PROFESSIONAL LICENSE FEE WHICH SHE IS SEEKING TO REPEAL AS PART OF THE LATEST ROUND OF PROPOSALS UNLIKE THE LATEST NEW TAX LAST YEAR'S EXEMPTED CITY RESIDENTS AND WAS ATTACKED AS AN ILLEGAL COMMUTER FEE WHICH IS BANNED UNDER THE CITY'S CHARTER THE ISSUE OF NEW TAXES AND FEES HAS SPLINTERED THE NATION'S THIRDLARGEST BAR WHICH DESPITE SOME HIGHPROFILE MEMBERS MOSTLY COMPRISES LAWYERS WHO WORK IN FIRMS OF 10 LAWYERS OR FEWER A NUMBER OF LAWYERS AT SMALLER FIRMS HAVE CRITICIZED THE HANDLING OF LAST YEAR'S NEGOTIATIONS WHICH WERE LED BY A NUMBER OF LARGE LAW FIRMS FOR NOT CHALLENGING THE ENTIRE ISSUE IN COURT AND FOR ACCEPTING THE FLAT FEE WHICH LARGER FIRMS COULD PRESUMABLY MORE EASILY AFFORD TWO HUNDRED FIFTY DOLLARS IS A LOT OF MONEY TO SOME LAWYERS IN THIS TOWN SAYS JOHN FLOYD A CRIMINALDEFENSE AND FAMILYLAW PRACTITIONER THEY MADE A DECISION TO PROTECT THE BIG LAW FIRMS AND TO HELL WITH THE REST OF US BUT SOME LAWYERS SAY THEY DON'T MIND PITCHING IN TO HELP WITH THE CITY'S PROBLEMS THEY JUST OBJECT IN PRINCIPLE TO BEING SINGLED OUT FOR SPECIAL TREATMENT WHEN IT COMES TO NEW TAXES WHY SHOULD I HAVE TO PAY MORE TAX THAN A WEALTHY STOCKBROKER SAYS TIMOTHY MAY MANAGING PARTNER OF PATTON BOGGS & BLOW A PROMINENT LAW AND LOBBYING FIRM PATTON BOGGS HAS BANDED TOGETHER WITH ABOUT 20 OTHER LARGE FIRMS HERE TO HIRE THEIR VERY OWN LOBBYIST TO OPPOSE THE NEW TAX IT IS A VERY WORRISOME SITUATION SAYS MR MAY LAST WEEK THE DISTRICT BAR HELD AN EMERGENCY MEETING TO AUTHORIZE ITS LEADERS TO LOBBY AGAINST NEW TAXES ON THE THEORY THAT THE TAXES COULD AFFECT THE COST AVAILABILITY AND QUALITY OF LEGAL SERVICES IN THE CITY BAR OFFICIALS SAY LAST YEAR'S LICENSING FEES HAVE PROMPTED MORE THAN 5000 LAWYERS A NUMBER EQUAL TO ROUGHLY 10 OF THE ACTIVE MEMBERSHIP TO ASSUME INACTIVE STATUS AND PROMPTED SCORES OF OTHER LAWYERS TO RESIGN OUTRIGHT FROM THE BAR THAT HAS LEFT THE BAR EXPERIENCING ITS OWN BUDGET SQUEEZE FORCING CUTBACKS IN PRO BONO AND LAWYERREFERRAL PROGRAMS TRENDS THAT WOULD BE COMPOUNDED IF NEW TAXES WERE IMPOSED SOME STATES INCLUDING HAWAII HAVE LONG TAXED LAWYERS AS PART OF BROADER EXCISETAX SCHEMES A PERNICIOUS IF TIMEHONORED TRADITION SAYS MICHAEL O'MALLEY A HONOLULU TAX LAWYER AND A GROWING NUMBER OF JURISDICTIONS SEEM INTRIGUED BY THE IDEA IN 1990 NEW JERSEY SUCCESSFULLY ASSESSED LAWYERS A SPECIAL FEE TO HELP PAY FOR AN OVERHAUL OF ITS AUTOINSURANCE SYSTEM LAST FALL ARKANSAS LEGISLATORS CONSIDERED THOUGH DIDN'T PASS A LAWYER AND PROFESSIONALSERVICE TAX TO RAISE FUNDS TO OFFSET A SHORTAGE IN STATE HEALTHCARE FUNDS IN CALIFORNIA THE LARGEST BAR IN THE COUNTRY THE ISSUE COMES UP ALMOST EVERY YEAR SAYS THE BAR PRESIDENT HARVEY SAFERSTEIN ALTHOUGH NOTHING HAS MATERIALIZED YET BECAUSE OF A FEELING THAT THE COST WOULD BE PASSED ON TO CLIENTS RIGHT NOW IT'S DIFFICULT TO PREDICT WHETHER THE WASHINGTON TAX WILL BE ENACTED CONSIDERING THE SIZE OF THE DEFICIT THERE WILL BE ENORMOUS POLITICAL PRESSURE TO IMPOSE SOME KIND OF ADDED FEES BUT SOME OBSERVERS ARE BETTING THAT LAWYERS WILL WIN OUT THE 13MEMBER CITY COUNCIL FOR INSTANCE INCLUDES SIX LAWYERS MOREOVER WITH CLINTON HAVING RESTORED THE IMAGES OF LAWYERS BY PUTTING THEM ALL IN THE GOVERNMENT I THINK THERE IS A STRONG LIKELIHOOD THAT THE LAWYERS WILL BEAT THIS ONE SAYS DAVID MCCARTHY A GEORGETOWN LAW CENTER PROFESSOR THE JUDGE IN THE RODNEY KING BEATING TRIAL CITING PRIVACY AND SAFETY CONCERNS RULED THAT RESPONSES TO QUESTIONNAIRES GIVEN TO PROSPECTIVE JURORS WILL REMAIN SECRET IN THE UNUSUAL MOVE US DISTRICT JUDGE JOHN G DAVIES SAID THE ANSWERS TO THE 55PAGE QUESTIONNAIRE DISTRIBUTED TO A POOL OF ABOUT 330 POTENTIAL JURORS WON'T BE MADE PUBLIC EVEN AFTER THE TRIAL IS COMPLETED HOWEVER HE RELEASED BLANK SAMPLE QUESTIONNAIRES AND ALLOWED A SMALL MEDIA POOL TO WATCH THE SELECTION PROCESS BEGIN LAWYERS FOR THE DEFENDANTS FOUR POLICEMEN ACCUSED OF VIOLATING MR KING'S CIVIL RIGHTS HAD REQUESTED THAT THE ENTIRE JURYSELECTION PROCESS BE CLOSED TO THE PUBLIC ARGUING THAT JURORS WOULD BE MORE FORTHRIGHT IF THEY KNEW THEIR RESPONSES WOULD BE KEPT PRIVATE THE QUESTIONNAIRE TOPICS RANGE FROM PROSPECTIVE JURORS' TASTES IN MOVIES TO THEIR VIEW OF THE RESULT IN THE OFFICERS' FIRST TRIAL TO THEIR OPINION OF POLICE IN GENERAL THE OFFICERS' ACQUITTAL IN STATE COURT LAST SPRING SPARKED CIVIL DISTURBANCES IN LOS ANGELES JUDGE DAVIES SAID THE UNPRECEDENTED AND TRULY EXTRAORDINARY NATURE OF THE CASE OVERRODE A GENERAL RULE THAT CRIMINAL TRIALS MUST REMAIN OPEN TO THE PUBLIC WE DO NOT WANT THIS CASE TRIED BY 12 PEOPLE WHO SECRETLY OR OPENLY FEAR FOR THEIR SAFETY IN THE FUTURE JUDGE DAVIES SAID THE DECISION TO SEAL THE ANSWERS TO THE QUESTIONNAIRES PROMPTED CHALLENGES FROM LAWYERS FOR SEVERAL NEWS ORGANIZATIONS SOME OF WHOM SAID THEY WOULD CONSIDER AN APPEAL OF THE RULING NANCY HOLLANDER A CRIMINAL DEFENSE LAWYER IN ALBUQUERQUE NM SAID THE JUDGE'S ACTION RAISED CIVILLIBERTIES PROBLEMS ONE OF THE MAIN REASONS WE HAVE PUBLIC TRIALS IS TO PROTECT THE RIGHTS OF CRIMINAL DEFENDANTS SO THINGS DON'T HAPPEN IN PRIVATE THAT THE PUBLIC WOULD NEVER KNOW ABOUT AND COMPLAIN ABOUT SHE SAID P CAMERON DE VORE A FIRST AMENDMENT LAWYER IN SEATTLE SAID THE BLANKET SEALING RAISES VERY SERIOUS FIRST AMENDMENT PROBLEMS IF THERE'S SOME INTENSELY PRIVATE MATTER INVOLVING A JUROR THE SOLUTION IS TO REDACT IT BLACKEN IT OUT NOT WITHHOLD THE ENTIRE QUESTIONNAIRE HE SAID AFTER THE OFFICERS' TRIAL LAST YEAR JURORS' NAMES WERE PUBLICIZED BY SEVERAL NEWS ORGANIZATIONS SOME PANELISTS LATER COMPLAINED THAT THEY FEARED FOR THEIR SAFETY IN THE FEDERAL TRIAL BY CONTRAST THE ENTIRE POOL OF PROSPECTIVE JURORS WILL REMAIN ANONYMOUS DURING YESTERDAY'S HALFHOUR PROCEEDING JUDGE DAVIES REPEATEDLY ASSURED PROSPECTIVE JURORS THAT THEIR IDENTITIES WOULD REMAIN SECRET FOREVER IN A BLOW TO ATTEMPTS BY STATES TO SUBSIDIZE THE GROWING COST OF HEALTH CARE A FEDERAL JUDGE SAID NEW YORK'S METHOD OF SETTING HOSPITAL RATES IS ILLEGAL NEW YORK IMPOSES SURCHARGES WHICH AMOUNT TO AS MUCH AS 24 OF HOSPITAL BILLS AND ARE PAID BY A PATIENT'S INSURER IN ORDER TO HELP COVER THE DIFFERENCE BETWEEN THE GOVERNMENTSET RATE FOR HOSPITALIZATION AND ITS TRUE COST BUT JUDGE LOUIS J FREEH WHO SITS IN MANHATTAN SAID THE STATE'S SYSTEM VIOLATES PROVISIONS OF THE FEDERAL EMPLOYMENT RETIREMENT INCOME SECURITY ACT BY KILLING THE SURCHARGES WHICH GENERATED MORE THAN 100 MILLION FOR HOSPITAL AND STATE COFFERS JUDGE FREEH'S DECISION MAY TEMPORARILY LOWER INSURANCE PAYOUTS BUT IT WILL ALSO MAKE IT MORE DIFFICULT FOR THE STATE TO COVER THE COST OF HEALTH CARE FOR THE UNDERINSURED AND UNINSURED JUDGE FREEH'S DECISION FOLLOWS A SIMILAR RULING LAST YEAR BY A FEDERAL DISTRICT COURT JUDGE IN NEW JERSEY WHICH LED THAT STATE TO REVAMP ITS ENTIRE HEALTHCAREPAYMENT SYSTEM THE NEW JERSEY CASE IS CURRENTLY BEING APPEALED TO THE FEDERAL APPEALS COURT IN PHILADELPHIA AT LEAST TWO OTHER STATES HAVE ALSO TRIED TO USE SURCHARGES TO COVER THE HEALTHCARE COSTS OF THE UNINSURED NEW YORK SAID IT WILL APPEAL THE RULING AND WILL ASK JUDGE FREEH TO ALLOW THE CURRENT SYSTEM TO CONTINUE IN THE MEANTIME THE ISSUE IN THIS CASE AND THE OTHERS LIKE IT IS HOW SUCH SURCHARGES AFFECT THE EMPLOYEE ORGANIZATIONS THAT PAY FOR THE HEALTH CARE OF THEIR MEMBERS BY BUYING COMMERCIAL INSURANCE OR HEALTHMAINTENANCEORGANIZATION PLANS THE INSURERS SUCCESSFULLY ARGUED THAT THE SURCHARGES REPRESENT AN ILLEGAL TAX UNDER ERISA BECAUSE THEY MAKE EMPLOYEE ORGANIZATIONS PAY FOR THE HEALTH CARE OF PEOPLE WHO AREN'T MEMBERS EVERY PHILADELPHIA STREET BEING REPAVED MUST GET A WHEELCHAIR RAMP A FEDERAL DISTRICT JUDGE RULED THE RULING IS THE FIRST TO ORDER SUCH AN ACCOMMODATION UNDER THE 1990 AMERICANS WITH DISABILITIES ACT UNDER THE ACT BUILDING AND REMODELING THAT TAKES PLACE AFTER JAN 26 1992 MUST BE ACCESSIBLE TO PEOPLE WITH DISABILITIES CITY ATTORNEYS ARGUED THAT REPAVING A STREET DOESN'T AFFECT THE CURB WHEN THE CITY WORKS DIRECTLY ON CURBS IT ADDS THE RAMPS WHICH ALLOW PEOPLE IN WHEELCHAIRS TO CROSS THE STREET WITHOUT THE RISK OF THE CHAIR OVERTURNING CITY OFFICIALS ALSO HAD TRANSITION PLANS FOR GRADUALLY ADDING RAMPS AREA BY AREA BUT THE JUDGE SAID REPAVING A STREET AFFECTS ITS USABILITY AND SO UNDER A BROADER INTERPRETATION OF THE CIVILRIGHTS ACT REQUIRES THAT RAMPS BE ADDED OTHER COURTS HAVE ORDERED CITIES TO MAKE ACCOMMODATIONS TO THE DISABLED BUT IN TERMS OF PEOPLE IN WHEELCHAIRS THIS IS THE FIRST SAID W THOMAS HAGY MANAGING EDITOR OF MEALEY PUBLICATIONS INC WAYNE PA THE COMPANY TRACKS ADA CASES AND OTHER LITIGATION ABOUT 30 OTHER ACCESSIBILITY LAWSUITS HAVE BEEN FILED AROUND THE COUNTRY HE SAID DEBORAH M RUSSO DEPUTY CITY SOLICITOR SAID PHILADELPHIA OFFICIALS HADN'T DECIDED WHETHER TO APPEAL WHO'S NEWS R WILLIAM IDE III PRESIDENTELECT OF THE AMERICAN BAR ASSOCIATION AND FIVE OTHER PARTNERS FROM THE OMAHA NEB LAW FIRM KUTAK ROCK WILL JOIN ATLANTA LAW FIRM LONG ALDRIDGE & NORMAN THE NEW LONG ALDRIDGE PARTNERS SPECIALIZE IN PUBLIC FINANCE JAMES R WALTHER AND KENNETH E KOHLER HAVE JOINED CHICAGOBASED MAYER BROWN & PLATT'S LOS ANGELES OFFICE AS PARTNERS MESSRS WALTHER AND KOHLER FORMERLY PARTNERS AT MCKENNA & FITTING IN LOS ANGELES WILL PRACTICE BANKING SECURITIES AND CORPORATE LAW AMY STEVENS IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9302040011 930204 WHO'S NEWS REISS MEDIA ENTERPRISES INC REISS MEDIA ENTERPRISES INC NEW YORK BRUCE KARPAS 36 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PAYPERVIEW MEDIA COMPANY JEFFREY C REISS CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WHOSE MAJORITY INVESTORS ARE RUPERT MURDOCH'S NEWS CORP AND TELECOMMUNICATIONS INC A CABLE TELEVISION OPERATOR MR KARPAS MOST RECENTLY HAS BEEN PRESIDENT OF REQUEST TELEVISION A MULTICHANNEL PAYPERVIEW UNIT OF REISS MEDIA HE WILL BE SUCCEEDED AT REQUEST BY HUGH PANERO 36 FORMERLY VICE PRESIDENT OF MARKETING AND PAYPERVIEW FOR TIME WARNER CABLE REISS MEDIA SAID MR PANERO WILL BE RESPONSIBLE FOR EXPANDING REQUEST'S TWO PAYPERVIEW CHANNELS TO 40 BY EARLY 1994 OFFERING SPORTS AND OTHER NONMOVIE ENTERTAINMENT 9302040010 930204 BUSINESS BRIEF HONG KONG INVESTOR AGREES TO BUY REST OF OFFICE TOWER FROM OLYMPIA & YORK TORONTO HONG KONG BILLIONAIRE LI KASHING AGREED IN PRINCIPLE TO ACQUIRE THE 51 INTEREST THAT HE DOESN'T ALREADY OWN IN AN INSOLVENT NEW YORK OFFICE TOWER FROM OLYMPIA & YORK DEVELOPMENTS LTD PEOPLE FAMILIAR WITH THE SITUATION SAID CREDITORS TO O&Y AN INSOLVENT REAL ESTATE CONCERN BASED IN TORONTO SAID THE TRANSACTION SIGNALS THAT THE COMPANY IS MAKING PROGRESS IN ITS EFFORTS TO RESTRUCTURE ITS US OPERATIONS THEY SAID THE AGREEMENT WITH MR LI BRINGS O&Y A STEP CLOSER TO KEEPING ITS US SUBSIDIARY OUT OF BANKRUPTCY COURT O&Y HAS TOLD ITS CREDITORS THAT ITS STRATEGY IS FIRST TO STOP THE BLEEDING BY RESTRUCTURING THE MORTGAGES ON ITS FINANCIALLY WEAKEST NEW YORK PROPERTIES AND THEN NEGOTIATE AN OVERALL RESTRUCTURING OF ITS DEBT WHICH STOOD AT 58 BILLION AT THE END OF 1991 O&Y HAS BEEN OPERATING UNDER CANADIAN BANKRUPTCY LAW PROTECTION SINCE MAY THEY ARE WORKING THEIR WAY THROUGH THESE TROUBLED PROPERTIES SAID A PERSON FAMILIAR WITH THE SITUATION WITH THE LATEST TRANSACTION INVOLVING THE SALE OF O&Y'S INTEREST IN THE PROPERTY AT 60 BROAD ST THE COMPANY HAS NOW RESTRUCTURED THE DEBT ON THREE OF THE FIVE NEW YORK BUILDINGS THAT O&Y HAD IDENTIFIED AS DRAINING CASH FROM THE COMPANY BECAUSE OF TAXES INTEREST AND MAINTENANCE COSTS ALSO AS PART OF ITS RESTRUCTURING EFFORTS O&Y IS CLOSE TO SELLING TWO OTHER OF ITS PROPERTY HOLDINGS INCLUDING THE KOIN CENTER IN PORTLAND ORE AND A REDEVELOPMENT PROJECT IN BOSTON PEOPLE FAMILIAR WITH THE SITUATION SAID THESE DEALS COULD NET O&Y ABOUT 25 MILLION WHICH COULD COVER MOST IF NOT ALL OF THE COMPANY'S OPERATING EXPENSES FOR 1993 SEPARATELY O&Y SAID THAT PAUL AND ALBERT REICHMANN THE CURRENT OWNERS OF THE COMPANY LAST WEEK RESIGNED AS OFFICERS OF THE US SUBSIDIARY THE REICHMANN BROTHERS ARE EXPECTED TO ABANDON THEIR OFFICE SPACE AT O&Y'S NEW YORK OPERATIONS THE RESIGNATIONS ARE PART OF AN OVERALL SHIFT IN POWER AT O&Y'S TORONTO HEADQUARTERS FROM THE REICHMANNS TO THE COMPANY'S UNSECURED CREDITORS UNDER TERMS OF ITS CANADIAN RESTRUCTURING PLAN IN THE NEW YORK TRANSACTION MR LI WHO ACQUIRED AN INITIAL 49 STAKE IN 60 BROAD ST IN 1991 WOULD END UP OWNING ALL OF THE 39STORY BUILDING THAT HAS BEEN TWOTHIRDS VACANT SINCE INVESTMENT HOUSE DREXEL BURNHAM LAMBERT INC FILED FOR BANKRUPTCYLAW PROTECTION IN 1990 MR LI THROUGH HIS DRAGON HOLDINGS LTD ALSO HOLDS THE MORTGAGE ON THE BUILDING CURRENTLY VALUED AT 50 MILLION 9302040009 930204 LAWRENCE WALSH SCOFFLAW BY MICHAEL A LEDEEN THE ETHICS IN GOVERNMENT ACT WHICH GAVE US SPECIAL PROSECUTORS HAS BEEN REINTRODUCED IN THE SENATE AND THE PERFORMANCE OF LAWRENCE WALSH WILL PROVIDE MUCH OF THE BACKGROUND MUSIC FOR THE COMING DEBATE THERE ARE MANY ALARMING ASPECTS TO MR WALSH'S TENURE NOT LEAST OF WHICH IS AN UNCHALLENGED POWER THAT HAS PERMITTED HIM TO IGNORE THE LAWS RULES AND REGULATIONS THAT BIND MOST MEN AND WOMEN ENGAGED IN THE ENFORCEMENT OF LAWS AT THE SAME TIME THAT HE HAS INSISTED ON UNPRECEDENTED STANDARDS FOR HIS INTENDED VICTIMS WHENEVER MR WALSH IS ANNOYED BY OFFICIAL REGULATIONS FOR EXAMPLE ON THINGS LIKE PAY AND TRAVEL HE SIMPLY IGNORES THEM SINCE IN THE WORDS OF HIS OLYMPIAN RESPONSE TO A RECENT GOVERNMENT ACCOUNTING OFFICE INQUIRY INTO THE OPERATIONS OF HIS OFFICE HE DOES NOT BELIEVE THAT THESE REQUIREMENTS APPLY TO INDEPENDENT COUNSELS AS A MATTER OF LAW AS OF LAST MARCH ABOUT 30 OF HIS EMPLOYEES HAD RUN UP MORE THAN 5000 HOURS OF UNJUSTIFIED EXCESS LEAVE AND TO DATE MR WALSH HAS PAID HIMSELF ABOUT 78000 ABOVE THE AUTHORIZED RATE FOR PER DIEM EXPENSES THESE EXPENSES WERE THEMSELVES SUSPECT BECAUSE HE HAD DECLARED HIS WORK STATION TO BE OKLAHOMA CITY RATHER THAN WASHINGTON WHERE HE SPENT THE BULK OF HIS WORKING HOURS THIS MANEUVER LET HIM CHARGE THE GOVERNMENT FOR HIS UNAUTHORIZED FIRST CLASS TRAVEL BETWEEN OKLAHOMA AND WASHINGTON AND TEMPORARILY LET HIM NEATLY CIRCUMVENT THE DISTRICT OF COLUMBIA'S INCOME TAXES HE PAID THE TAXES ALONG WITH A FINE ONLY AFTER HIS CIRCUMVENTION WAS UNCOVERED BY A CONGRESSIONAL INQUIRY AND REPORTED IN THE NEWSPAPERS THUS THE SAME SPECIAL PROSECUTOR WHO SO EXCORIATES HIS VICTIMS FOR PLACING THEMSELVES ABOVE THE LAW HAS NOT APPLIED THE SAME STANDARDS TO HIMSELF INDEED WHEN HE WAS INVOLVED IN US FOREIGN POLICY MR WALSH SOUNDED VERY MUCH LIKE THE IRANCONTRA PLAYERS HE LATER PROSECUTED BACK IN 1960 AS ACTING ATTORNEY GENERAL IN THE EISENHOWER ADMINISTRATION MR WALSH MET WITH SECRETARY OF STATE CHRISTIAN HERTER AND CIA DIRECTOR ALLEN DULLES TO DISCUSS HOW BEST TO MONITOR AND CONTROL TRAVELERS BETWEEN THE US AND CUBA MR HERTER SUGGESTED THAT IT MIGHT BE DESIRABLE TO PASS SOME NEW LAWS TO STRENGTHEN US CONTROL OVER THE TRAVELERS BUT MR WALSH DISMISSED SUCH LEGAL NICETIES ACCORDING TO FOREIGN RELATIONS OF THE UNITED STATES 19581960 VOL VI CUBA STATE DEPARTMENT WALSH POINTED OUT THAT THERE WAS SOME POINT AT WHICH YOU SIMPLY HAD TO CIRCUMVENT THE LAW AND THAT WHAT WAS IMPORTANT WAS THAT THE INS BE GIVEN A PLAUSIBLE BASIS FOR DOING SO BACK THEN MR WALSH WAS WILLING TO CIRCUMVENT THE RULES ON BEHALF OF NATIONAL SECURITY MORE RECENTLY HE HAS SIMPLY TRASHED NATIONAL SECURITY REGULATIONS HIS DISDAIN FOR PROPER PROCEDURES HAS PRODUCED A SUBSTANTIAL HEMORRHAGE OF CLASSIFIED INFORMATION WHICH MR WALSH OFTEN REFERS TO AS PHONY SECRETS CIA CABLES COMPLETE WITH HIGHLY SENSITIVE MARKINGS INVALUABLE FOR ANYONE WHO WISHES TO FORGE SUCH DOCUMENTS WERE PUBLICLY RELEASED AS EXHIBITS DURING TRIALS IN VIOLATION OF SECURITY REQUIREMENTS DURING A DISCUSSION OF A MOTION TO QUASH A SUBPOENA THE WALSH TEAM IDENTIFIED A COVERT AGENT BY NAME SOCALLED REDACTED PLEADINGS FROM MR WALSH CONTAINED CLASSIFIED INFORMATION THAT SHOULD HAVE BEEN DELETED ON OCCASION CLASSIFIED MATERIAL WAS INCLUDED IN MR WALSH'S OFFICIAL LETTERS WHICH SUBSEQUENTLY HAD TO BE RETRIEVED AND THEN CLASSIFIED OR REDACTED HIGHLY SENSITIVE DOCUMENTS WERE DELIVERED TO RECEPTIONISTS AT DEFENSE COUNSELS' OFFICES INSTEAD OF BEING PLACED IN SPECIAL SECURE FACILITIES THIS LAST ITEM IS OF A PIECE WITH THE MOST SPECTACULAR EXAMPLE OF MR WALSH'S CAVALIER TREATMENT OF GOVERNMENT SECRETS LAST JULY WHEN HE TRAVELED TO CALIFORNIA TO INTERVIEW FORMER PRESIDENT REAGAN MR WALSH CARRIED A SATCHEL OF CLASSIFIED DOCUMENTS HAVING COMPLETED THE INTERVIEW MR WALSH GAVE HIS LUGGAGE INCLUDING THE SATCHEL TO HIS STAFFERS INSTRUCTING THEM TO CHECK THE BAGS ONTO HIS FLIGHT BACK TO WASHINGTON THE BAGS WERE CHECKED IN AT CURBSIDE AT LOS ANGELES INTERNATIONAL AIRPORT BUT THE SATCHEL NEVER ARRIVED AT ITS DESTINATION THE DRAMATIC DISAPPEARANCE OF SUCH SENSITIVE MATERIAL MUST HAVE SHAKEN EVEN THE SPECIAL PROSECUTOR BUT HE FAILED TO REPORT THE EVENT FOR SEVERAL WEEKS AND WHEN HE DID HE SUGGESTED TO THE AMAZED SECURITY OFFICERS AT THE JUSTICE DEPARTMENT THAT THE ENTIRE PROCEDURE HAD BEEN APPROVED BY HIS SECURITY PERSONNEL THIS WAS DENIED BY A WALSH SECURITY OFFICER WHO TOOK A POLYGRAPH TEST ON THE MATTER AND PASSED IT THE CASE IS STILL UNDER INVESTIGATION AT THE JUSTICE DEPARTMENT AND BUSH DEPUTY ATTORNEY GENERAL GEORGE TERWILLIGER HAS TERMED MR WALSH'S BEHAVIOR A FLAGRANT VIOLATION OF SECURITY REGULATIONS IF ANY NORMAL OFFICIAL OF THE EXECUTIVE BRANCH BEHAVED IN THIS MANNER HE WOULD FIND HIMSELF IN DEEP TROUBLE QUITE ASIDE FROM THE CASUAL DISCLOSURE OF GOVERNMENT SECRETS IN COURT REGULATIONS REQUIRE A SECURITY ESCORT WHEN TRANSPORTING CLASSIFIED DOCUMENTS AND THE IMMEDIATE REPORTING OF ANY LOSS ANYONE CIRCUMVENTING SUCH STRICTURES WOULD AT AN ABSOLUTE MINIMUM HAVE HIS SECURITY CLEARANCES SUSPENDED AND MIGHT VERY WELL BE PLACED ON EXTENDED LEAVE PENDING THE OUTCOME OF THE INVESTIGATION NOTHING HAS BEEN DONE TO MR WALSH THAT MR WALSH HAS REMAINED IMMUNE FROM EVEN THE SLIGHTEST OFFICIAL REPRIMAND TESTIFIES TO THE IMMENSE POWER OF HIS OFFICE AS FORMER INDEPENDENT COUNSEL JACOB STEIN REMARKED RECENTLY IF YOU'VE GOT AN UNLIMITED BUDGET AND UNLIMITED STAFF YOU CAN OVERPOWER ANYONE NOBODY CAN COMPETE WITH YOU ESPECIALLY AN INDIVIDUAL WHEN SUCH AWESOME POWER IS IN THE HANDS OF SOMEONE LIKE MR WALSH IT IS A GUARANTEE FOR DISASTER THE ETHICS IN GOVERNMENT ACT SHOULD HAVE A STAKE DRIVEN THROUGH ITS HEART AND BE BURIED IN A LEAD CASKET IN THE MEANTIME THOSE WHO CARE ABOUT ABUSES OF PROSECUTORIAL POWER SHOULD CONDUCT A THOROUGH INVESTIGATION OF THE ACTIVITIES OF LAWRENCE WALSH AND HIS CREW MR LEDEEN IS AN AMERICAN ENTERPRISE INSTITUTE SCHOLAR HIS LONGER ARTICLE ABOUT LAWRENCE WALSH APPEARS IN THE CURRENT AMERICAN SPECTATOR 9302040008 930204 DELL STOCK FALLS AMID SEC SCRUTINY POSSIBILITY EARNINGS COULD BE RESTATED BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP STOCK NOSEDIVED FOR THE SECOND STRAIGHT DAY AFTER THE COMPANY STATED THAT ITS FORMER FOREIGN CURRENCY TRADING ACTIVITIES ARE STILL BEING SCRUTINIZED BY THE SECURITIES AND EXCHANGE COMMISSION AND SAID AN EARNINGS RESTATEMENT HASN'T BEEN RULED OUT THE AUSTIN TEXAS PERSONAL COMPUTER MAKER SAID IT ISSUED THE STATEMENT TO CLARIFY CERTAIN MEDIA REPORTS PUBLISHED AFTER DELL OFFICIALS HELD CONFERENCE CALLS WITH REPORTERS AND STOCK ANALYSTS MONDAY INVESTORS REACTED HARSHLY TO THE ANNOUNCEMENT DRIVING DELL'S SHARE PRICE DOWN 3125 OR 7 TO 41875 BY THE CLOSE OF TRADING IN THE NATIONAL OVERTHECOUNTER MARKET DELL'S STOCK WAS THE MOST ACTIVE IN THE NATIONAL MARKET SYSTEM WITH 47 MILLION SHARES TRADING THE COMPANY'S STOCK TUESDAY PLUNGED 4 TO 45 IN WHAT ANALYSTS DESCRIBED AS A REACTION TO GUIDANCE PROVIDED BY MICHAEL DELL CHIEF EXECUTIVE OFFICER TO ANALYSTS AND REPORTERS THAT THE COMPANY'S EARNINGS AND SALES WOULD FALL SLIGHTLY BELOW ANALYSTS' MEAN PROJECTIONS FOR THE FOURTH FISCAL QUARTER ENDED JAN 31 THE COMPANY ON MONDAY SAID THAT THE SEC'S CORPORATE FINANCE AND ENFORCEMENT DIVISIONS HAD CLEARED DELL TO ISSUE A PROSPECTUS COVERING A PROPOSED OFFERING OF FOUR MILLION COMMON SHARES OFFICIALS ALSO SAID AT THE TIME THAT THE SEC WOULDN'T REQUIRE THE DOCUMENT TO INCLUDE A RESTATEMENT OF EARNINGS BUT INSTEAD ASKED THAT THE COMPANY INCLUDE SUPPLEMENTAL INFORMATION SHOWING THE EFFECT ON EARNINGS HAD DELL CLOSED OUT ITS FOREIGN CURRENCY HEDGING POSITIONS AT THE END OF EACH QUARTER DURING THE PAST TWO YEARS ACCORDING TO A TRANSCRIPT OF THE CONFERENCE CALL WITH REPORTERS PROVIDED BY DELL TOM MEREDITH CHIEF FINANCIAL OFFICER STATED THAT THE TWO SEC DIVISIONS HAVE BASICALLY SAID LAST WEEK THAT THERE IS NOTHING THEY SEE THAT WOULD PREVENT US FROM GOING EFFECTIVE WITH THE ADDITIONAL DISCLOSURES WHICH WILL BE INCLUDED IN OUR PROSPECTUS ALTHOUGH HE ADDED THAT THE ENFORCEMENT DIVISION WILL CONTINUE THE INQUIRY FOR SOME PERIOD OF TIME AND THAT IS PRESUMABLY TO DETERMINE THE ACCURACY OF THE REPRESENTATION IN THE VARIOUS COMMUNICATIONS WE HAVE HAD WITH THEM BY LOOKING AT THE UNDERLYING DOCUMENTATION AS FOR THE POSSIBILITY OF A RESTATEMENT A SPOKESWOMAN SAID YESTERDAY THAT DELL OFFICIALS SAID VERY SPECIFICALLY WE HAVE NOT BEEN ASKED TO RESTATE THEY DID NOT SAY WE WILL NEVER BE ASKED TO RESTATE A RESTATEMENT ACTUALLY WOULD HAVE THE EFFECT OF IMPROVING DELL'S NET INCOME THIS YEAR OFFICIALS SAID FOR THE FIRST 11 MONTHS OF THE FISCAL YEAR ENDED JAN 31 1993 UNWINDING THE HEDGES WOULD HAVE GIVEN DELL AN ADDITIONAL 45 CENTS A SHARE IN REPORTED EARNINGS DELL SAID IN THE FISCAL YEAR ENDED FEB 2 1992 THE NET EFFECT WOULD HAVE BEEN A 42 CENT A SHARE REDUCTION IN EARNINGS THE COMPANY'S AGGRESSIVE CURRENCY TRADING ACTIVITIES WHICH THE BOARD ORDERED DISCONTINUED LAST AUGUST WERE THRUST INTO THE SPOTLIGHT LATE LAST YEAR WHEN AN ANALYST WITH KIDDER PEABODY & CO ISSUED A REPORT SUGGESTING THAT THE COMPANY MAY HAVE USED THE TRADES TO INFLATE EARNINGS THE ANALYST SAID AT THE TIME THAT HIS INVESTIGATION SHOWED NO EVIDENCE OF WRONGDOING AND DELL HAS VEHEMENTLY DENIED ANY IMPROPRIETY SOME ANALYSTS YESTERDAY SAID THEY BELIEVE DELL'S SHARE PRICE WAS ALSO UNDERCUT BY AN ANNOUNCEMENT BY RIVAL COMPAQ COMPUTER CORP OF HOUSTON THAT IT WAS ACCELERATING THE PERSONAL COMPUTER PRICE WARS IN JAPAN WITH PRICE CUTS OF 10 TO 20 ALSO PRUDENTIAL SECURITIES INC ANALYST MARIANNE WOLK TUESDAY LOWERED HER RECOMMENDATION ON DELL STOCK TO HOLD FROM BUY CITING THE UNCERTAIN OUTLOOK FOR DEMAND AND DOWNWARD PRESSURE ON PC PRICES 9302040007 930204 LEISURE & ARTS FILM NAKED HUMANS AND TALKING ANIMALS BY JULIE SALAMON WHEN JEANCLAUDE VAN DAMME STRIPPED TO BATHE IN HIS LATEST FILM NOWHERE TO RUN THE YOUNG WOMAN SITTING IN FRONT OF ME CLAPPED HER HANDS THE WOMAN NEXT TO HER GIGGLED I SUPPOSE THESE ARE SIGNS THAT MR VAN DAMME IS MAKING THE TRANSITION FROM MARTIALARTS WIZARD TO ALLAROUND HUNK FANS OF THE PURE VAN DAMME ACTION FILMS LIKE DEATH WARRANT AND BLOODSPORT PROBABLY WILL BE DISAPPOINTED BY THIS PICTURE TOO MUCH FOREPLAY TOO LITTLE GUNPLAY THEY MAY NOT REALIZE THAT THE BEST WAY TO APPRECIATE NOWHERE TO RUN IS AS A DEADPAN SPOOF IT IS OPENLY MODELED ON THE OLD STUDIO WESTERNS WHICH OFFERED DOZENS OF VARIATIONS ON THE SAME STOCK SITUATION ONE WAY OR ANOTHER A SOLITARY COWBOY WITH AN UNKNOWN PAST RODE IN TO DO BATTLE WITH RAPACIOUS LANDOWNERS AND THEIR EVIL HENCHMEN FORCING THEIR WILL ON ORDINARY CITIZENS ESPECIALLY HELPLESS WIDOWS AND CUTE CHILDREN A TRIO OF SCREENWRITERS LED BY JOE BASIC INSTINCT ESZTERHAS HAVE ADAPTED THE FORMULA TO MODERN TIMES WITH AN UNASSAILABLE LACK OF IMAGINATION NOW THE COWBOY RIDES A MOTORCYCLE INSTEAD OF A HORSE NOW INSTEAD OF TIPPING HIS HAT TOWARD THE WIDOW AND PERHAPS STEALING A KISS HE GETS TO TAKE HER TO BED NOW INSTEAD OF THUMBING THROUGH AN OLD BIBLE HE LIES IN HIS TENT STARING AT GIRLIE MAGAZINES THE BASICS HOWEVER REMAIN THE SAME MORE OR LESS THERE IS THE RAPACIOUS LANDOWNER IN THIS CASE A BRITISH DEVELOPER TRYING TO BUY OR BURN OUT THE LOCALS AND OF COURSE THERE IS THE ATTRACTIVE WIDOW ROSANNA ARQUETTE AND HER CUTE CHILDREN ONE OF THEM PLAYED BY KIERAN CULKIN WHO WILL BEAR THE CURSE OF BEING THE YOUNGER BROTHER OF THE MUCH MORE SUCCESSFUL MACAULEY AT LEAST UNTIL THE HOME ALONE KID REACHES PUBERTY OF COURSE THEY ARE MERELY PROPS FOR THE BEAUTIFUL JEANCLAUDE HE SAYS VERY LITTLE AND LOOKS VERY SAD AND VERY PRETTY ALMOST TOO PRETTY TO BE ACCEPTED AS AN ESCAPED CONVICT EVEN ONE WITH A HEART OF GOLD INDEED MR VAN DAMME APPEARS GILDED FROM HEAD TO TOE THANKS TO THE GOLDEN GLOW DIRECTOR ROBERT HARMON HAS CAST ON THE ENTIRE FILM BUT ESPECIALLY ON HIS STAR LIGHT SEEMS TO SHINE ON MR VAN DAMME'S FACE AT ALL TIMES EVEN WHEN HE'S STANDING IN A WINDOWLESS ROOM MR VAN DAMME REVEALS NOTHING BY DOING NOTHING IN THE BAD LIEUTENANT HARVEY KEITEL REVEALS NOTHING BY DOING A GREAT DEAL MAINLY DEGRADING HIMSELF WITH VIOLENT ENTHUSIASM I SUPPOSE IT'S A GREAT PERFORMANCE THOUGH ONE COULD DEBATE WHETHER WHAT HE'S DOING SHOULD BE CALLED ACTING OR SOME WEIRD KIND OF THERAPY BAD LIEUTENANT IS THE SOPHOMORIC AND EXCRUCIATINGLY DETAILED PORTRAIT OF A COP WHO SPENDS HIS TIME DOING DRUGS ABUSING WOMEN AND BETTING ON THE METS ITS DIRECTOR ABEL FERRARA HAS ACQUIRED A SMALL CULT FOLLOWING OVER THE YEARS WITH FILMS SUCH AS KING OF NEW YORK THAT TRY TO ILLUMINATE SORDIDNESS BY WALLOWING IN IT HIS VULGAR USE OF CHRISTIAN IMAGERY MAKES HIM A NATURAL SOULMATE FOR MADONNA SHE'S REPORTEDLY SIGNED TO DO A PICTURE WITH HIM THOUGH SHE'S A MODEL OF INTELLECTUAL RIGOR AND ARTISTIC GRACE BY COMPARISON MR FERRARA FOR EXAMPLE SHOWING THE MEDICAL EXAMINATION OF A NUN WHO HAS JUST BEEN RAPED MAKES SURE WE SEE THE NUN NAKED AND THAT SHE HAS THE BODY OF A PLAYBOY CENTERFOLD THIS SILLY AND PRETENTIOUS FILM IS WORTH MENTIONING ONLY BECAUSE IT ACQUIRED SOME CELEBRITY BY BEING THE FIRST RECIPIENT OF THE NEW NC17 DESIGNATION MEANT TO KEEP PEOPLE UNDER 18 OUT OF THEATERS USUALLY FILMMAKERS COMPLAIN ABOUT THIS ADULTSONLY RATING BECAUSE IT LIMITS THEIR AUDIENCE IN THIS CASE HOWEVER THEY SEEM GLAD TO HAVE IT THAT HELPS IN THE MARKETPLACE MR FERRARA HAS SAID IT'S THE TABOO YOU SELL THE TABOO I CAN ONLY IMAGINE HOW DISAPPOINTED THE HIGH SCHOOL KIDS SNEAKING INTO THE PICTURE WILL BE WHEN THEY ACTUALLY SEE THE SOURCE OF THE TABOO MR KEITEL'S NAKED TORSO NOT MUCH OF A SELLING POINT BACK WHEN THERE WERE MANY TABOOS IN FILMMAKING IT WAS BELIEVED THE WAY TO BRING IN AUDIENCES WAS WITH A DOG WHAT THAT MOVIE REALLY NEEDED WAS A DOG OLD HOLLYWOOD HANDS COULD BE HEARD MUTTERING AFTER A SCREENING THESE DAYS WITH NAKED HUMANS APPEARING ONSCREEN MUCH MORE FREQUENTLY THAN DOGS I HAVE OFTEN FOUND MYSELF MUTTERING WHAT THAT MOVIE REALLY NEEDED WAS A DOG WELL HERE COMES HOMEWARD BOUND THE INCREDIBLE JOURNEY WHICH HAS TWO DOGS AND A CAT THIS REMAKE OF THE 1963 DISNEY MOVIE THE INCREDIBLE JOURNEY ALSO HAS HUMANS THE FAMILY WAITING FOR THE ANIMALS AT THE OTHER END OF THEIR DANGEROUS TREK ACROSS THE SIERRA NEVADA MOUNTAINS AND IN THIS VERSION THE ANIMALS TALK WITH HUMAN VOICES MICHAEL J FOX'S CHANCE THE FEISTY BULLDOG PUPPY SALLY FIELD'S SASSY THE HIMALAYAN CAT AND DON AMECHE'S SHADOW THE GOLDEN RETRIEVER I'M NOT SURE THE MOVIE REALLY NEEDED THE HUMANS THEY AREN'T NEARLY AS CUTE OR WISE OR BRAVE AS THE ANIMALS BUT THEY ARE A MINOR DISTRACTION FROM THE MAIN EVENT WATCHING THE ANIMALS STRUGGLE AGAINST NATURE THE MOVIE IS BEAUTIFULLY FILMED AND QUITE EXCITING THOUGH SMALL CHILDREN WILL PROBABLY FIND IT EVEN SCARIER THAN HARVEY KEITEL'S NAKED TORSO VIDEO TIP MY FAVORITE DOG MOVIE REMAINS OLD YELLER 1957 EVEN THOUGH IT'S SO SAD I STILL FIND IT HARD TO WATCH KIDDIES WILL LIKE BENJI THE 1974 PICTURE ABOUT A HEROIC DOG WHO'S A CUTE LITTLE MUTT NOT A NOBLE COLLIE LIKE LASSIE I ALSO HAVE FOND MEMORIES OF BIG RED 1962 9302040005 930204 ASPIN TELLS DEFENSE DEPARTMENT TO CUT 83 BILLION FROM FISCAL 1994 BUDGET BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MILITARY SERVICES WERE TOLD TO EXPECT TO CUT 83 BILLION FROM THEIR BUDGETS FOR THE FEDERAL FISCAL YEAR BEGINNING OCT 1 DEFENSE SECRETARY LES ASPIN TOLD THE NAVY TO CUT 3 BILLION THE AIR FORCE 28 BILLION AND THE ARMY 25 BILLION A DEFENSE DEPARTMENT OFFICIAL SAID IN ADDITION TO THOSE CUTS THERE MAY BE OTHERS ELSEWHERE IN THE DEFENSE DEPARTMENT BUT THERE MAY BE SOME SPENDING BOOSTS TOO THE OFFICIAL SAID THUS HE SAID THE CLINTON ADMINISTRATION'S PROPOSED 1994 DEFENSE BUDGET WON'T NECESSARILY BE 83 BILLION BELOW THE BUSH ADMINISTRATION'S LAST PUBLISHED PROJECTED PENTAGON BUDGET OF ABOUT 267 BILLION THE SERVICES WERE TOLD TO PLAN ON HAVING 14 MILLION UNIFORMED PERSONNEL IN 1996 INCLUDING ABOUT 100000 TROOPS IN EUROPE THE BUSH ADMINISTRATION HAD CALLED FOR AN EVENTUAL BASE FORCE OF 16 MILLION ACTIVEDUTY PERSONNEL MILITARY OFFICERS EXPRESSED LITTLE SURPRISE AT THE NEWS OF THE CUTS DURING THE CAMPAIGN PRESIDENT CLINTON SAID HE WOULD SEEK TO CUT 60 BILLION FROM THE BUSH ADMINISTRATION'S PROJECTED DEFENSE SPENDING OVER THE NEXT FIVE YEARS SO THE SERVICES HAVE BRACED FOR REDUCTIONS OF ABOUT THE SIZE THEY HAVE BEEN GIVEN EVERYONE KNEW THERE WERE SOME ADDITIONAL CUTS COMING SO I HAVEN'T SEEN ANY REAL SHOCK SAID ONE NAVY OFFICER BARRY BLECHMAN PRESIDENT OF THE RESEARCH COMPANY DEFENSE FORECASTS INC SAID IN THE CURRENT CONTEXT IT'S A CONSERVATIVE POSITION BECAUSE THERE ARE PLENTY OF PEOPLE WHO WOULD LIKE TO RAID DEFENSE SPENDING A CONGRESSIONAL AIDE FAMILIAR WITH DEFENSE BUDGET QUESTIONS SAID THAT MANY IN CONGRESS VIEW SECRETARY ASPIN'S CUTS AS SIMPLY A STARTING POINT WE CAN'T GO ANY HIGHER ON DEFENSE SPENDING AND WE COULD GO A LOT LOWER HE SAID SEPARATELY THE WHITE HOUSE ANNOUNCED THE SELECTION OF TWO PEOPLE WHO WILL PLAY A LARGE ROLE IN SHAPING THE CLINTON ADMINISTRATION'S DEFENSE BUDGETS AS EXPECTED MR CLINTON NOMINATED WILLIAM PERRY CODIRECTOR OF STANFORD UNIVERSITY'S CENTER FOR INTERNATIONAL SECURITY AND ARMS CONTROL TO BE DEPUTY SECRETARY OF DEFENSE DURING HIS PREVIOUS PENTAGON STINT AS UNDERSECRETARY OF DEFENSE FOR RESEARCH AND ENGINEERING DURING THE CARTER ADMINISTRATION MR PERRY WAS KNOWN AS A STRONG ADVOCATE OF STEALTH TECHNOLOGIES IN ANNOUNCING THE NOMINATION PRESIDENT CLINTON SAID MR PERRY'S EXPERTISE IN MILITARY TECHNOLOGY WILL BE KEY AS WE WORK TO KEEP OUR MILITARY THE STRONGEST IN THE WORLD IN A TIME OF BUDGETARY CONSTRAINTS MR PERRY IS LIKELY TO BE AN ALLY OF PRESIDENT CLINTON IN PUSHING FOR LARGER AND FASTER PERSONNEL CUTS THAN HAVE BEEN ADVOCATED BY GEN COLIN POWELL THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF AND OTHERS IN THE MILITARY THREE YEARS AGO IN AN ESSAY PROPOSING A DEFENSE INVESTMENT STRATEGY FOR THE 1990S MR PERRY OUTLINED AN APPROACH SIMILAR TO THAT ADVOCATED BY PRESIDENT CLINTON DURING THE CAMPAIGN THE US SHOULD CUT ITS FORCES HE ARGUED BUT SHOULD CONTINUE TO PLACE A PREMIUM ON READINESS THUS HE SAID A NECESSARY BUT PAINFUL ELEMENT OF THE NEW STRATEGY IS REDUCTION OF PERSONNEL MEANWHILE WHITE HOUSE BUDGET DIRECTOR LEON PANETTA NAMED A PROMINENT CRITIC OF THE REAGANBUSH DEFENSE BUDGETS GORDON ADAMS TO BE HIS ASSOCIATE DIRECTOR FOR NATIONAL SECURITY AND INTERNATIONAL AFFAIRS MR ADAMS WHO HOLDS A DOCTORATE IN POLITICAL SCIENCE FROM COLUMBIA UNIVERSITY IS FOUNDER AND DIRECTOR OF THE DEFENSE BUDGET PROJECT A NONPARTISAN RESEARCH CENTER A FREQUENT WITNESS ON CAPITOL HILL WHO OFTEN IS QUOTED BY THE PRESS MR ADAMS HAS ATTACKED THE PENTAGON FOR FAILING TO STREAMLINE ITS OPERATIONS AND ELIMINATE DUPLICATION AMONG THE ARMED SERVICES BUT HE ALSO HAS CRITICIZED CONGRESS FOR THE WAY IT HANDLES THE DEFENSE BUDGET AS THE NATION HAS BEGUN TO ADJUST DEFENSE BUDGETS AND PROGRAMS TO POSTCOLD WAR REALITIES MR PANETTA SAID GORDON HAS HELPED TO SHAPE THE DEBATE OVER SPENDING AND PRIORITIES 9302040004 930204 IRS CHANGES RULE ON FIRMS AVOIDING PAYROLL TAXES WASHINGTON THE INTERNAL REVENUE SERVICE ISSUED A POLICY DESIGNED TO ENSURE THAT ONLY THOSE PEOPLE AT A COMPANY WHO TRULY ARE RESPONSIBLE FOR FAILING TO COLLECT AND TURN OVER PAYROLL TAXES ARE HIT WITH TOUGH SANCTIONS THE NEW GUIDELINES WHICH STRESS THAT NO ONE WILL BE PENALIZED UNLESS THERE IS SUFFICIENT INFORMATION TO SHOW THEY WERE ACTIVELY INVOLVED IN THE WRONGDOING ARE SUPPOSED TO BE ADOPTED IMMEDIATELY BY IRS FIELD AGENTS IN THE PAST THE IRS WOULD OFTEN GO AFTER THE PERSON WHO WAS MOST VULNERABLE EVEN THOUGH THAT WASN'T ALWAYS THE PERSON WHO WAS THE MOST GUILTY OF AVOIDING PAYROLL TAXES SAID THOMAS OCHSENSCHLAGER A PARTNER AT THE ACCOUNTING FIRM GRANT THORNTON THEY USED TO CAST THEIR NET SO WIDE IT WASN'T FAIR WHENEVER A COMPANY FAILS TO PAY TO THE GOVERNMENT THE TAXES THAT ARE ROUTINELY WITHHELD FROM EMPLOYEES' PAYCHECKS THE IRS CAN GO AFTER OFFICIALS OF THE COMPANY TO SATISFY THE LIABILITY IN 1992 THE AGENCY ASSESSED SUCH A PENALTY AGAINST 57000 INDIVIDUALS AND COLLECTED 225 MILLION FROM THEM WITH ITS EARLIER APPROACH THE IRS AUTOMATICALLY ASSUMED THE EXECUTIVES OF A CORPORATION THE PRESIDENT SECRETARY AND TREASURER WERE THE ONES TO LOOK TO WHEN THERE WAS A PROBLEM THAT'S NO LONGER THE CASE SAID JIM HELM DEPUTY ASSISTANT COMMISSIONER FOR COLLECTION IN GENERAL NONOWNER EMPLOYEES OF A BUSINESS WHO ACT UNDER THE DIRECTION OF OTHERS WON'T BE HIT WITH THE PENALTY 9302040003 930204 WEDNESDAY'S MARKETS MOST STOCK INDEXES JUMP TO RECORDS IN HEAVY TRADING BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS BETTING ON A STRONGER ECONOMY WENT ON A BUYING SPREE PROPELLING MOST STOCK MARKET INDEXES EVEN FURTHER INTO RECORD TERRITORY LONGTERM BOND PRICES ALSO ROSE BUT THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED 4512 POINTS IN VERY HEAVY TRADING TO 337379 LEAVING IT LESS THAN 40 POINTS BELOW ITS RECORD SET IN JUNE BUT BROADER INDEXES CONTINUED TO SET RECORDS STANDARD & POOR'S 500STOCK INDEX ROSE 464 TO A RECORD 44720 AND THE NASDAQ COMPOSITE INDEX GAINED 355 TO A RECORD 70867 WALL STREET'S INFATUATION WITH SMALL STOCKS HAS DRIVEN UP THE NASDAQ INDEX 225 SINCE EARLY OCTOBER ALSO SETTING RECORDS YESTERDAY WERE THE DOW JONES TRANSPORTATION AND UTILITY INDEXES AS WELL AS THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX A LATEAFTERNOON RALLY IN LONGTERM BOND PRICES CONTRIBUTED TO THE STOCK MARKET'S CLOSING BURST OF STRENGTH PRICES OF 30YEAR BONDS ROSE AFTER THE TREASURY ANNOUNCED PLANS TO CUT THE AMOUNT OF NEW 30YEAR BONDS IT WILL SELL NEXT WEEK THE REDUCTION IN THE AMOUNT OF NEW LONGTERM DEBT WHICH WAS EXPECTED BY MANY TRADERS TENDS TO MAKE EXISTING 30YEAR BONDS MORE VALUABLE LEADING THE WAY IN YESTERDAY'S STOCK MARKET PARADE WERE CYCLICAL ISSUES THOSE COMPANIES WHOSE EARNINGS ARE ESPECIALLY SENSITIVE TO OVERALL CHANGES IN THE ECONOMY THE ECONOMY LOOKS IN MUCBETTER SHAPE INTEREST RATES ARE STILL LOW AND MONEY IS POURING INTO CYCLICAL STOCKS SAID GEORGE PIRRONE HEAD EQUITY TRADER AT DREYFUS CORP I THINK THERE'S EVEN MORE ROOM TO GO ON THE UP SIDE AN INDEX OF 30 BLUECHIP CYCLICAL ISSUES COMPILED BY MORGAN STANLEY & CO GAINED 417 TO A RECORD 25977 THIS INDEX INCLUDES INDUSTRIES SUCH AS AUTOS PAPER MACHINERY CHEMICALS TRANSPORTATION AND METALS BECAUSE OF MORE EVIDENCE OF ECONOMIC RECOVERY INVESTORS ARE ROTATING OUT OF CONSUMERORIENTED GROWTH COMPANIES INTO ECONOMICALLY SENSITIVE INDUSTRIES SAID THOMAS M MCMANUS VICE PRESIDENT AT MORGAN STANLEY LOW INTEREST RATES AND HOPES FOR FURTHER DECLINES ARE ENCOURAGING MORE INVESTORS TO RUSH INTO STOCKS THE PRESSURE FROM UNAPPEALINGLY LOW INVESTMENT RETURNS ON SHORTTERM SECURITIES IS COMPELLING INVESTORS TO MOVE MONEY INTO STOCKS AND INTO LONGERTERM BONDS SAID ROBERT BECKWITT PORTFOLIO MANAGER OF FIDELITY ASSET MANAGER FUND IN BOSTON I THINK INTEREST RATES ARE HEADED LOWER BECAUSE THERE'S NO INFLATION WORLDWIDE STOCK PRICES GAINED THE DOW JONES WORLD STOCK INDEX ADVANCED 074 TO 9343 ADDING TO THE STOCK AND BOND MARKET MOMENTUM IS THE DOLLAR'S RECENT STRENGTH TRADERS SAY THE DOLLAR'S CLIMB IS LIKELY TO ENTICE MORE INVESTORS OVERSEAS TO INVEST IN US STOCKS AND BONDS THE FEDERAL RESERVE WHICH CONCLUDED A TWODAY MEETING YESTERDAY TO REVIEW CREDIT POLICY PROBABLY WILL LEAVE CREDIT POLICY UNCHANGED FOR AT LEAST A FEW MONTHS SEVERAL ANALYSTS PREDICT THE INFLATION NEWS HAS BEEN VERY POSITIVE AND THE FEDERAL RESERVE WON'T TIGHTEN CREDIT AT THIS STAGE OF THE RECOVERY SAID STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO YOU'VE HAD AS GOOD ECONOMIC NEWS AS YOU POSSIBLY COULD HAVE ASKED FOR LATELY MR RESNICK SAID IN MAJOR MARKET ACTION STOCK PRICES SURGED VOLUME SOARED TO 3425 MILLION ON THE NEW YORK STOCK EXCHANGE WHERE 1317 ISSUES ROSE AND 604 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16450 MARKS AND 12436 YEN COMPARED WITH 16405 MARKS AND 12465 YEN TUESDAY 9302040002 930204 REVIEW & OUTLOOK EDITORIAL ZOE AND JUDGE WALSH IT'S BEEN SIX YEARS SINCE INDEPENDENT COUNSEL LAWRENCE WALSH SET OUT ON HIS CRUSADE TO INVESTIGATE IRANCONTRA SINCE THEN THE PUBLIC HAS BEEN TOLD IN EXHAUSTIVE DETAIL ABOUT EVERY MEETING MEMO AND MARGINAL COMMENT EVEN REMOTELY RELATED TO THE AFFAIR WHAT THEY HAVE HEARD ALMOST NOTHING ABOUT IS MR WALSH'S REMARKABLE ABUSES OF POWER IN AN ARTICLE IN THE CURRENT AMERICAN SPECTATOR AN ADAPTATION APPEARS NEARBY SEE RELATED EDITORIAL LAWRENCE WALSH SCOFFLAW WSJ FEB 4 1993 MICHAEL LEDEEN OF THE AMERICAN ENTERPRISE INSTITUTE PROVIDES AN EYEOPENING VIEW OF JUST HOW MUCH MR WALSH HAS HIMSELF PLAYED FAST AND LOOSE WITH THE LAW WHEN IT COMES TO RELENTLESSLY PURSUING HIS PREY HE IS LIKE A MODERNDAY INSPECTOR JAUBERT OUT OF LES MISERABLES BUT WHEN QUESTIONS ABOUT HIS OWN BEHAVIOR ARISE HE IS SUDDENLY FLUSH WITH EXCUSES AND EVASIONS MR LEDEEN NOTES THAT MR WALSH AND HIS ASSISTANT PROSECUTOR CRAIG GILLEN RAN AFOUL OF A WASHINGTON DC LAW THAT REQUIRES ANYONE WHO LIVES THERE FOR MORE THAN HALF THE YEAR TO PAY LOCAL INCOME TAXES WHEN THIS FACT WAS PUBLICIZED BOTH MEN HAD TO PAY UP ALONG WITH A FINE FOR YEARS MR WALSH STAYED IN A SUITE AT THE WATERGATE HOTEL IN WASHINGTON AT A DISCOUNT THAT WAS 55 A NIGHT BELOW THE LOWEST RATE CHARGED ANY OTHER FEDERAL EMPLOYEE THIS CUTRATE DEAL MAY HAVE VIOLATED ETHICS RULES THAT REQUIRE THAT FEDERAL EMPLOYEES ACCEPT ONLY DISCOUNTS OFFERED TO ALL EMPLOYEES THE CATALOG CONTINUES IN THE LEDEEN ARTICLE NOW BEHOLD ZOE BAIRD ONCE IT WAS DISCOVERED THAT MS BAIRD FLOUTED THE LAW BY HIRING ILLEGAL ALIENS AND NOT PAYING THEIR SOCIAL SECURITY TAXES HER STORY BECAME A CAUSE CELEBRE THE TALK OF THE NATION CULMINATING IN MS BAIRD BEING DRIVEN BACK TO HER JOB WITH AETNA IN CONNECTICUT BUT WHILE ZOE BAIRD GETS ROLLED OUT OF TOWN JUDGE WALSH ROLLS MERRILY ALONG UNMOLESTED BY THE SLIGHTEST PEEP FROM PRESS OR POLITICIANS WHAT'S GOING ON HERE PRESUMABLY A LONGTIME WASHINGTON RESIDENT AND FORMER ACTING US ATTORNEY GENERAL SUCH AS MR WALSH WOULD KNOW WHAT THE TAX AND ETHICS LAWS WERE WHY HAVE THERE BEEN SO FEW CALLS FOR MR WALSH TO RESIGN SO LITTLE PUBLICITY AFTER ALL HE DOES HOLD WHAT WE ARE SUPPOSED TO BELIEVE IS ONE OF THE MOST HALLOWED LAW ENFORCEMENT JOBS IN THE LAND THE ANSWER IS THAT ETHICS CHARGES MAKE A DANDY AND DEADLY POLITICAL WEAPON USED BY LIBERAL INTEREST GROUPS TO ASSAULT REPUBLICANS AND NOW IT APPEARS EVEN DEMOCRATIC MODERATES FRUSTRATED AT NOT BEING ABLE TO IMPLEMENT THEIR AGENDA THROUGH ELECTORAL POLITICS THE CITY'S RESIDENT FACTIONS HAVE USED CONGRESSIONAL INQUISITIONS MEDIA REVELATIONS AND PROSECUTIONS TO WIN WHAT THEY CAN'T GET WITH CONVENTIONAL POLITICS CENTRAL TO THE VIEW OF THESE GROUPS IS THE BELIEF THAT ETHICAL QUESTIONS RAISED AGAINST A WASHINGTON OUTSIDER LIKE ZOE BAIRD WILL BE SEEN AS DISQUALIFYING BUT THAT COMPLAINTS ABOUT A LIBERAL ICON SUCH AS LAWRENCE WALSH WILL BE DISMISSED AS PETTIFOGGERY AND ON THE EVIDENCE OF THE DESTRUCTION OF ZOE BAIRD ALONGSIDE THE CANONIZATION OF LAWRENCE WALSH THEY'RE RIGHT AS WE'VE LONG ARGUED THE OFFICE OF INDEPENDENT COUNSEL IS AN OPEN INVITATION TO PROSECUTORIAL ABUSE IT ALLOWS COUNSELS TO ENDLESSLY INVESTIGATE INDIVIDUALS ALL THE WHILE ACCOUNTABLE TO NO SIGNIFICANT AUTHORITY AND THEN USE THEIR POWER TO DECIDE WHETHER TO PROSECUTE IN THE FEDERALIST PAPERS JAMES MADISON IDENTIFIED THE CLEAR DANGER OF CREATING SUCH A HYBRID OFFICE WERE THE POWER OF JUDGING JOINED TO THE EXECUTIVE POWER THE JUDGE MIGHT BEHAVE WITH ALL THE VIOLENCE OF AN OPPRESSOR THE LAW AUTHORIZING INDEPENDENT COUNSELS HAS EXPIRED AND IT MUST BE RENEWED BEFORE ANY NEW ONES CAN BE APPOINTED ALLOWING CONGRESS TO PASS A NEW VERSION THAT DOESN'T LIMIT THE TIME AND MONEY THESE COUNSELS CAN SPEND PURSUING THEIR TARGETS WOULD BE A MISTAKE THERE IS SIMPLY NO SAFEGUARD AGAINST INTEMPERATE COUNSELS SUCH AS JUDGE WALSH RUNNING AMOK ONLY THIS TIME THE TARGET WON'T BE THE REAGAN PRESIDENCY BILL CLINTON AND OTHER SERIOUS DEMOCRATS MIGHT WANT TO TALK TO FORMER CARTER AIDES HAMILTON JORDAN AND TIM KRAFT THE FIRST TARGETS OF SPECIAL PROSECUTORS BOTH WERE CLEARED BUT THEY RETAIN BITTER MEMORIES OF THE NIGHTMARE THE DOUBLE STANDARD EVIDENT IN THE BAIRD AND WALSH CASES MAKES CLEAR AGAIN THAT WASHINGTON OPERATES ACCORDING TO A UNIQUE MORALITY IT'S BEEN OUR IMPRESSION THAT THE CLINTON ADMINISTRATION WANTS TO CLEAN UP THIS SORT OF THING 9302040001 930204 INDUSTRY FOCUS LAST OF THE US TIRE MAKERS RIDE OUT FOREIGN INVASION GOODYEAR AND COOPER REGAIN LOST GROUND AS OVERSEAS RIVALS STRUGGLE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL LEFT FOR DEAD AFTER AN INVASION BY FOREIGN TIRE MAKERS THE LAST TWO US COMPANIES NOW REJUVENATED ARE RECAPTURING LOST GROUND GOODYEAR TIRE & RUBBER CO'S BLOCKBUSTER AQUATRED AND ITS EXPANDED DISTRIBUTION NETWORK ENABLED THE AKRON OHIO TIRE MAKER TO GAIN 15 OF THE PASSENGER TIRE MARKET LAST YEAR GIVING IT AN ESTIMATED 315 SHARE AT THE SAME TIME NEIGHBOR COOPER TIRE & RUBBER CO OF FINDLAY OHIO CARVED AN EVEN GREATER NICHE AS THE TIRE MAKER FOR BUDGETMINDED CONSUMERS AND BOTH COMPANIES EXPECT BIGGER GAINS THIS YEAR MEANWHILE FOREIGN POWERHOUSES WHICH STARTED TAKING OVER MAJOR US TIRE MAKERS IN THE LATE 1980S BARELY HELD OR LOST SHARE JAPAN'S BRIDGESTONE/FIRESTONE INC IS PITCHING A NEW MARKETING STRATEGY BUT YEARS OF CONSTANT CHANGES HAVE CUSTOMERS AND DEALERS CONFUSED MICHELIN TIRE CORP A UNIT OF FRANCE'S GROUPE MICHELIN HAS WATCHED ITS TECHNOLOGICAL EDGE FADE AS ITS SATURATION AMONG DEALERS SPARKS PRICE CUTS AND GENERAL TIRE INC OWNED BY GERMANY'S CONTINENTAL AG IS TRYING TO REBOUND AFTER 18 MONTHS OF REORGANIZATION IT PROMISES TO BE AN EVEN GREATER SLUGFEST THIS YEAR FOREIGN TIRE MAKERS ARE REGROUPING AND MARKET GROWTH IS SLOWING FOR EVERYONE ANALYSTS EXPECT THE PASSENGER TIRE MARKET TO GROW JUST 15 TO 2 AFTER TACKING ON UNIT GROWTH OF MORE THAN 5 TO 208 MILLION TIRES LAST YEAR STILL THE TWO US TIRE MAKERS REMAIN CONFIDENT THEY WILL CONTINUE TO MAKE INROADS WE EXPECT TO BE TAKING MARKET SHARE FROM PEOPLE BOASTS JOHN FIEDLER GOODYEAR'S EXECUTIVE VICE PRESIDENT OF NORTH AMERICAN TIRES IVAN W GORR COOPER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PROJECTS THAT HIS COMPANY'S SHIPMENTS WILL CLIMB 10 TO 15 THIS YEAR SIGNALING HIS BELIEF THAT COOPER WILL GAIN MARKET SHARE GOODYEAR IS COUNTING ON CONTINUED GROWTH LARGELY ON ITS NEW PRODUCTS SUCH AS THE HIGH PERFORMANCE EAGLE GSC AND THE AQUATRED WHICH CHANNELS WATER OUT FROM UNDER THE TIRE AND SOLD ONE MILLION UNITS IN 1992 CONSUMER REPORTS RECENTLY RATED THE SPECIALWEATHER TIRE TOPS AMONG TOURING TIRES WHICH OFTEN COME ON PRICIER CARS AT THE SAME TIME GOODYEAR SCORED A COUP BY ENLISTING SEARS ROEBUCK & CO AS A RETAILER IT CONTINUED BROADENING ITS DISTRIBUTION NETWORK BY SIGNING IN JANUARY PHOENIXBASED DISCOUNT TIRE CO A POWERHOUSE IN TIRE RETAILING WITH 242 STORES MOSTLY IN THE SOUTHWEST WHILE GOOD FOR SALES THE MOVES COULD ULTIMATELY UNDERMINE GOODWILL AMONG GOODYEAR'S INDEPENDENT DEALERS THOSE DEALERS WHO CARRY GOODYEAR TIRES EXCLUSIVELY COMPLAIN THE COMPANY IS DILUTING THE PRECIOUS BRAND NAME BY CUTTING DEALS WITH RETAILERS WHO STOCK OTHER BRANDS OUR FRANCHISES ARE WORTHLESS SAYS FRED TAYLOR WHO OWNS BELL GOODYEAR TIRE & AUTOMOTIVE IN GLENDALE ARIZ INSTEAD OF HELPING ITS INDEPENDENTS BOOST SALES GOODYEAR FOUND IT EASIER TO THROW ITS DEALERS TO THE WOLVES ADDS RICHARD HAUGHLAND PRESIDENT OF CACTUS TIRE WHICH HAS SEVEN PHOENIX OUTLETS GOODYEAR'S MR FIEDLER NOTES THAT DESPITE THEIR OPPOSITION AND CONCERNS GOODYEAR DEALERS KEPT PACE WITH THE MARKET'S GROWTH LAST YEAR GOODYEAR ALSO MAINTAINS THAT AN EXPANDED DISTRIBUTION NETWORK EXPOSES THE BRAND TO MORE CONSUMERS ULTIMATELY BENEFITING ITS INDEPENDENT DEALERS AND THE COMPANY IS PURSUING A STRATEGY OF SELLING TIRES WHEREVER PEOPLE BUY THEM COOPER'S SUCCESS INVOLVES LESS CHANGE BUT CONTINUED EMPHASIS ON ITS NICHE PRIVATELABEL TIRES ONE OF THE FASTER GROWING MARKET SEGMENTS AND MORE THAN 50 OF COOPER'S BUSINESS WHILE OTHER MANUFACTURERS SLASHED PRIVATELABEL PRODUCTION IN THE LATE 1980S COOPER CONTINUED AND WAS READY TO POUNCE WHEN THE ECONOMY TURNED SLUGGISH TIRE BUYERS LOOKED FOR BARGAINS AND FOUND THEM EITHER THROUGH PRIVATE LABELS OR COOPER'S OWN LOWERPRICED BRAND AS A RESULT COOPER ADDED ABOUT HALF A PERCENTAGE POINT TO ITS MARKET SHARE REACHING JUST OVER 9 OF THE REPLACEMENTTIRE MARKET COOPER MAKES ONLY REPLACEMENT TIRES COOPER'S PLANTS ARE RUNNING AT FULL CAPACITY AND THIS YEAR SHOULD BE STRONG FOR COOPER AS WELL ANALYST HARRY W MILLIS OF FUNDAMENTAL RESEARCH INC IN CLEVELAND SAYS PRIVATE LABELS ARE EXPECTED TO GROW 4 TO 5 AGAIN AHEAD OF THE OVERALL MARKET CONTINUED GAINS BY THE TWO REMAINING US TIRE MAKERS WILL COME AT THE EXPENSE OF ONCEFEARED OVERSEAS COMPETITORS BRIDGESTONE/FIRESTONE CREATED WHEN JAPAN'S BRIDGESTONE BOUGHT FIRESTONE TIRE & RUBBER CO IN 1988 ALIENATED US CUSTOMERS AND DEALERS WHO ARE FRUSTRATED BY THE COMPANY'S CONSTANT MARKETING CHANGES AT ONE POINT IT LOOKED AS IF IT WOULD DUMP THE FIRESTONE BRAND AND SELL ONLY BRIDGESTONE TIRES A YEAR LATER IT BEGAN EMPHASIZING FIRESTONE AND THE MANAGEMENT TEAM SEEMS STUCK IN A GAME OF MUSICAL CHAIRS JAMES P MCCANN RESIGNED AS PRESIDENT LATE LAST YEAR AFTER POWER WAS CONSOLIDATED UNDER CHIEF EXECUTIVE OFFICER YOICHIRO KAIZAKI NOW MR KAIZAKI IS LEAVING TO BECOME PRESIDENT OF THE TOJOYBASED PARENT COMPANY BRIDGESTONE CORP MASATOSHI ONO THE COMPANY'S VICE PRESIDENT OF MANUFACTURING AND TECHNOLOGY WHO HAS WORKED CLOSELY WITH MR KAIZAKI WAS CHOSEN TO SUCCEED HIM AND CHARGED WITH CONTINUING TO REBUILD THE TIRE MAKER'S SHRINKING US MARKET THE COMPANY ALSO NAMED KENJI SHIBATA PRESIDENT SUCCEEDING JAMES P MCCANN WHO RESIGNED IN DECEMBER AFTER MUCH OF HIS POWER WAS SHIFTED AWAY A SPOKESMAN CONTENDS THAT BRIDGESTONE/FIRESTONE IS ON THE MEND IT BROKE EVEN IN 1992'S SECOND HALF AFTER POSTING LOSSES OF 1 BILLION FOR THE PRECEDING 30 MONTHS MICHELIN STILL A FORCE IS SHOWING SIGNS OF WEAR FOR THE LAST 10 YEARS THEY WERE LIVING ON THEIR REPUTATION SAYS RAY ADAMIC OWNER OF ADAMIC TIRE IN WICKLIFFE OHIO PRICES THOUGH HIT BY COMPETITIVE PRESSURES STILL WERE TOO STEEP FOR MANY CONSUMERS MICHELIN WHICH ACQUIRED UNIROYAL GOODRICH TIRE CO IN AKRON ALSO ALIENATED MANY DEALERS LAST YEAR WHEN IT ASKED THEM TO SERVICE A LINE OF TIRES IT IS SELLING ONLY THROUGH WAREHOUSE CLUBS MICHELIN SAYS THE PROGRAM GETS CUSTOMERS TO DEALERS WHO THEN CAN SELL THEM OTHER SERVICES AND THE TECHNOLOGICAL EDGE MICHELIN ONCE ENJOYED HAS EVAPORATED PEOPLE IN THE INDUSTRY SAY A MICHELIN SPOKESMAN SAYS BRAND SALES WERE ESPECIALLY STRONG LAST YEAR BUT DECLINES TO ELABORATE HE SAYS THE COMPANY STILL IS A TECHNOLOGICAL LEADER CITING ITS NEW FUELEFFICIENT TIRES THE OTHER MAJOR FOREIGN TIRE MAKER GENERAL TIRE BEGAN LANGUISHING SOON AFTER CONTINENTAL BOUGHT IT IN 1987 DEMAND FAILED TO TRANSLATE INTO PRODUCTS AND THE COMPANY WAS PUMPING OUT TOO MANY CHEAP TIRES PULLING DOWN THE IMAGE AND PRICE OF ITS OTHER BRANDS THE COMPANY IS BEGINNING TO TURN THAT AROUND GENERAL TIRE EXPECTS TO REPLACE 80 OF ITS TIRES WITH NEW OFFERINGS INCLUDING THE HYDRO 2000 WHICH WILL GO HEAD TO HEAD WITH GOODYEAR'S AQUATRED 9302040160 930113 LINEITEM VETO WHY I CHANGED MY MIND BY BILL BRADLEY A NEW PRESIDENT WILL SOON TAKE OFFICE WITH THE OBLIGATION TO SET OUR NATION ON A NEW PATH TO ECONOMIC GROWTH MR CLINTON HAS PROMISED SUBSTANTIAL DEFICIT REDUCTION MODEST TAX INCREASES AND SELECTIVE INVESTMENT IN EDUCATION AND INFRASTRUCTURE TO IMPROVE OUR ECONOMIC PROSPECTS TO KEEP THESE PROMISES HE MUST HAVE THE TOOLS HE NEEDS IN PARTICULAR TO MAKE PROGRESS IN THE BATTLE AGAINST NARROW INTERESTS AND A BURGEONING DEFICIT I BELIEVE THAT THE PRESIDENT NEEDS A LINEITEM VETO TO CHANGE OUR NATION I HAVE CHANGED MY MIND MANY TIMES SINCE I FIRST RAN FOR THE SENATE I HAVE STUDIED THE PROPOSALS FOR A LINEITEM VETO THOUGHT THROUGH THE ARGUMENTS AND EACH TIME COME TO THE CONCLUSION THAT IT WOULD TILT THE BALANCE OF POWER FARTHER TOWARD THE PRESIDENT THAN THE DELICATE BALANCE EMBODIED IN OUR CONSTITUTION BUT I HAVE ALSO WATCHED FOR 12 YEARS AS THE DEFICIT QUINTUPLED PORKBARREL PROJECTS PERSISTED AND OUR PRESIDENTS AGAIN AND AGAIN DENIED RESPONSIBILITY FOR THE DECISIONS THAT LED TO THESE DEVASTATING TRENDS THINGS HAVE TO CHANGE SPENDING ON NARROW INTERESTS IS ONLY ONE OF THE TYPES OF SPENDING THAT DRIVE UP THE DEFICIT IT'S NOT THE ONLY TYPE NOR IS IT THE LARGEST BUT UNTIL WE CONTROL THESE EXPENDITURES FOR THE FEW WE CANNOT ASK FOR SHARED SACRIFICE FROM THE MANY WHO BENEFIT FROM ENTITLEMENTS OR FROM THE MANY WHO PAY TAXES TO BE EFFECTIVE AGAINST SPECIAL INTERESTS THE LINEITEM VETO MUST APPLY TO BOTH APPROPRIATIONS AND TAX BILLS SPENDING ON SPECIAL INTERESTS IS BY NO MEANS LIMITED TO APPROPRIATIONS BILLS USUALLY THE SOLE TARGET OF THOSE WHO SUPPORT A LINEITEM VETO AS MANY INSTANCES CAN BE FOUND IN TAX BILLS ALTHOUGH OFTEN CAMOUFLAGED IN CODED JARGON THAT MAKES IT NEXT TO IMPOSSIBLE TO FIGURE OUT WHO BENEFITS FOR EVERY 250000 EARMARKED IN AN APPROPRIATIONS BILL FOR A WATER TOWER IN JOPLIN MO THERE IS 32 MILLION BURIED IN A TAX BILL IN THE FORM OF A SPECIAL DEPRECIATION SCHEDULE FOR RENTAL TUXEDOS FOR EVERY 900000 APPROPRIATED FOR A REVOLVING BUSINESS LOAN FUND IN ELKHART IND THERE IS A 6 MILLION SPECIAL EXEMPTION FROM FUEL EXCISE TAXES FOR CROPDUSTERS SOME TAX EXPENDITURES EVEN CANCEL OUT SPENDING FOR THE COMMON GOOD WE SPEND MILLIONS OF DOLLARS TO CLEAN UP LEAD ASBESTOS AND URANIUM THREE OF THE MOST POTENT POISONS ON OUR PLANET BUT IN THE TAX CODE THERE'S A 12 MILLION SUBSIDY TO PRODUCE THESE MINERALS THEN THERE ARE THE PURE GIVEAWAYS FOR EXAMPLE ALLOWING PEOPLE TO RECEIVE TAXFREE INCOME FOR RENTAL OF THEIR HOMES FOR UP TO TWO WEEKS IF YOU LIVE NEAR WHERE THE MASTERS GOLF TOURNAMENT IS PLAYED YOU'VE HIT THE JACKPOT IN SINGLING OUT THESE PROJECTS I DO NOT MEAN TO PASS JUDGMENT ON THEIR MERITS EVERY SMALLBUSINESS OWNER COULD BENEFIT FROM A REVOLVING LOAN FUND BUT THESE PROVISIONS SINGLE OUT NARROW SUBCLASSES TO BENEFIT BUSINESSES THAT HAPPEN TO BE IN ELKHART IND FOR EXAMPLE OR PEOPLE WHO OWN CROPDUSTERS EVERYONE ELSE PAYS A LINEITEM VETO WOULD ALLOW THE PRESIDENT TO WEIGH THESE NARROW EXPENDITURES AGAINST OUR SHARED GOALS OF REDUCING SPENDING AND LOWERING TAXES AND IF CONGRESS CONCLUDES THAT THESE EXPENDITURES STILL HAVE MERIT IT CAN OVERRIDE THE VETO SPENDING IS SPENDING WHETHER IT COMES IN THE FORM OF A GOVERNMENT CHECK OR IN THE FORM OF A SPECIAL EXEMPTION FROM THE TAX RATES THAT APPLY TO EVERYONE ELSE TAX SPENDING GIVES SPECIAL INTERESTS AN EXCEPTION FROM THE RULES THAT OBLIGE EVERYONE ELSE TO SHARE IN THE RESPONSIBILITY OF PAYING FOR GOVERNMENT BUT UNLIKE THE APPROPRIATIONS PROCESS NARROW TAX BREAKS AREN'T SUBJECT TO ANNUAL DEBATE THEY FIND PERMANENT LIFE BURIED DEEP IN THE TAX CODE AND ADD HEFT TO OUR BUDGET DEFICIT YEAR AFTER YEAR IN 1992 FEDERAL TAX EXPENDITURES WERE ESTIMATED AT A STAGGERING 375 BILLION A SUM THAT IS MORE THAN THE ENTIRE DEFICIT THESE OUTLAYS ARE INCREASING AT AN ALARMING RATE DESPITE THE LOOPHOLES ELIMINATED BY THE TAX REFORM ACT OF 1986 IN THE PAST 10 YEARS SPENDING THROUGH THE TAX CODE HAS RISEN BY MORE THAN 100 BILLION FOR MR CLINTON TO KEEP HIS PROMISE TO CUT THE DEFICIT HE NEEDS THE POWER TO BLOCK UNNECESSARY SPENDING FOR NARROW INTERESTS FOR HIM TO HOLD THE LINE ON TAXES HE WILL NEED THE POWER TO BLOCK SPENDING THROUGH THE TAX CODE FOR SPECIAL INTERESTS AND IF HE IS TO KEEP HIS PROMISE TO MAKE NEW INVESTMENTS IN EDUCATION JOB TRAINING AND INFRASTRUCTURE HE WILL NEED THE POWER TO DISTINGUISH BETWEEN SPENDING THAT BENEFITS THE FEW AND INVESTMENT THAT WILL BENEFIT US ALL I AGREE WITH SEN FRITZ HOLLINGS D SC THAT EACH LINE ITEM IN EVERY APPROPRIATIONS BILL AND EVERY TAX BILL OUGHT TO BE ENROLLED AS A SEPARATE BILL AFTER IT HAS BEEN PASSED BY CONGRESS THE PRESIDENT COULD THEN EITHER SIGN THE ENTIRE BILL OR SINGLE OUT INDIVIDUAL ITEMS TO SIGN OR VETO SUCH A MECHANISM AVOIDS THE CONSTITUTIONAL OBSTACLES TO A LINEITEM VETO I ALSO URGE THAT THIS LINEITEM VETO REMAIN IN EFFECT FOR ONLY TWO YEARS IT NEEDS TO BE TESTED BEFORE IT BECOMES A FIXTURE OF LAW NOT ONLY WOULD A TWOYEAR SUNSET PROVISION ALLOW THE COURTS TO ADDRESS ANY CONSTITUTIONAL ISSUES THAT MIGHT ARISE IT WOULD ALSO ALLOW CONGRESS AND THE WHITE HOUSE AN OPPORTUNITY TO THOROUGHLY EVALUATE ITS CONSEQUENCES DID THE LINEITEM VETO TRULY HELP REDUCE THE DEFICIT WAS IT USED JUDICIOUSLY TO CUT UNNECESSARY SPENDING ON SPECIAL INTERESTS OR DID THE PRESIDENT USE IT POLITICALLY AGAINST MEMBERS OF CONGRESS DID IT SKEW THE BALANCE OF POWER ANSWERING SUCH QUESTIONS WILL AT LEAST BE A STEP BEYOND THE BLAMING AND EXCUSES THAT PASS FOR BUDGET POLICY TODAY THE LINEITEM VETO IS ONE TOOL THAT WILL HELP RESTORE PEOPLE'S TRUST THAT WASHINGTON CAN OVERCOME GRIDLOCK SEN BRADLEY IS A DEMOCRAT FROM NEW JERSEY SEE RELATED LETTERS LETTERS TO THE EDITOR HELPING DC GET A GRIP ON YOUR WALLET WSJ FEB 4 1993 9301130009 9302040134 930106 YOUR MONEY MATTERS UNCOVERING THE NEW MUTUAL FUND WRAP' PACKAGES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL CALL THEM MUTUAL FUND WRAPS THAT'S AS GOOD A NAME AS ANY TO DESCRIBE THE HOTTEST ALTERNATIVE TO WALL STREET'S POPULAR WRAP ACCOUNTS WITH TRADITIONAL WRAP ACCOUNTS A BROKER PUTS INVESTORS TOGETHER WITH OUTSIDE MONEY MANAGERS WHO INVEST THE MONEY IN INDIVIDUAL STOCKS AND BONDS THEY'RE CALLED WRAPS BECAUSE THE ASSETMANAGEMENT FEES AND TRANSACTION COSTS ARE WRAPPED TOGETHER INTO ONE FLAT FEE BASED ON A PERCENTAGE OF THE ASSETS UNDER MANAGEMENT THE ACCOUNTS HAVE BEEN ENORMOUSLY POPULAR INVESTORS HAVE POURED BILLIONS OF DOLLARS INTO WRAP ACCOUNTS AT BROKERAGE FIRMS INSURANCE COMPANIES AND BANKS BUT THE ACCOUNTS USUALLY REQUIRE A LARGE MINIMUM INVESTMENT OF 100000 AND THE HEFTY ANNUAL WRAP FEE WHICH TYPICALLY AMOUNTS TO 3 OF THE ASSETS UNDER MANAGEMENT DRAGS DOWN RETURNS THE ACCOUNTS ARE BEING OFFERED BY SHEARSON LEHMAN BROTHERS INC FIDELITY INVESTMENTS PRUDENTIAL SECURITIES AS WELL AS THOUSANDS OF INDEPENDENT BROKERS FINANCIAL PLANNERS AND INVESTMENT ADVISERS MERRILL LYNCH & CO IS EXPECTED TO LAUNCH A MUTUAL FUND WRAP EARLY THIS YEAR AND OTHER COMPANIES HAVE SIMILAR PROGRAMS ON THE DRAWING BOARDS NO WONDER MUTUAL FUND WRAPS HAVE BEEN A TREMENDOUS HIT SINCE SHEARSON INTRODUCED ITS MUTUAL FUND WRAP STRUCTURE IN LATE 1991 INVESTORS HAVE PUT MORE THAN 1 BILLION INTO ITS PROGRAM BUT THE NEW ACCOUNTS AREN'T WITHOUT DRAWBACKS THEY AREN'T AS CHEAP AS THEY SEEM AND IN SOME CASES ARE EVEN MORE EXPENSIVE THAN WRAP ACCOUNTS FURTHER NOT ALL ADVISERS ARE QUALIFIED TO MAKE INVESTMENT DECISIONS AND MANY RECOMMEND FUNDS ONLY FROM COMPANIES THAT PAY THE ADVISERS EXTRA PLACEMENT FEES INVESTORS WHO DON'T KNOW WHAT TO WATCH OUT FOR CAN FIND THEMSELVES PAYING A LOT FOR NOTHING AT THEIR WORST SOME BROKERS JUST USE THESE AS A WAY TO SELL' NOLOAD FUNDS AND TAKE A FEE SAYS MICHAEL CHASNOFF A FINANCIAL ADVISER IN CINCINNATI WHILE THE PROGRAMS ARE OFTEN CALLED DIFFERENT THINGS ASSET ALLOCATION SERVICES INVESTMENT ADVISORY PROGRAMS OR EVEN WRAPSTYLE ACCOUNTS THEY BASICALLY WORK THE SAME WAY INDIVIDUALS WHO ARE INTERESTED IN MUTUAL FUND WRAPS SHOULD START BY COMPARING FEES UNLIKE THE FLAT ALLINCLUSIVE ANNUAL FEE INVESTORS PAY FOR A TRADITIONAL WRAP ACCOUNT THE ANNUAL FEE ON A MUTUAL FUND WRAP HAS TWO COMPONENTS THE ADVISER'S FEE AND THE MUTUAL FUND EXPENSES THE ADVISER'S FEE WHICH IS USUALLY DEDUCTED QUARTERLY FROM AN INDIVIDUAL'S ACCOUNT IS USUALLY 1 OF ASSETS UNDER MANAGEMENT ANNUALLY FIDELITY'S PERSONAL ADVISORY SERVICE AND MOST OF THE 3800 ADVISERS WHO PARTICIPATE IN CHARLES SCHWAB FINANCIAL ADVISERS SERVICE CHARGE 1 SHEARSON'S TRAK PROGRAM CHARGES 15 AND PRUDENTIAL'S TARGET CHARGES 1 FOR FIXED INCOME FUNDS AND 15 ON STOCK FUNDS BUT SOME OTHER FIRMS CAN BE DRAMATICALLY HIGHER OR LOWER SEATTLE ADVISER PAUL A MERRIMAN ASSOCIATES CHARGES A FLAT 500 PLUS ONE TENTH OF 1 FOR ITS ACCOUNT THAT WORKS OUT TO 600 ON 100000 VS 1000 FOR ADVISERS CHARGING 1 PEOPLE SAY HOW CAN YOU BE SO CHEAP BECAUSE WE DON'T HAVE TO DO MUCH TO THE ACCOUNTS SAYS MR MERRIMAN THESE ARE MOSTLY LONGTERM INVESTORS SO OUR PHILOSOPHY IS BUYANDHOLD ON THE OTHER HAND LOWRY INVESTMENT'S ADAM NETWORK AN ATLANTABASED SERVICE IN WHICH BROKERS AND PLANNERS ENROLL CLIENTS COSTS INDIVIDUALS 185 OF ASSETS ANNUALLY OR 1850 PER 100000 INVESTORS WHO WANT TO COMPARE TOTAL COSTS ALSO NEED TO CONSIDER THE ANNUAL FEES THEY PAY FOR THE UNDERLYING FUNDS THESE ADMINISTRATIVE AND MANAGEMENT FEES WHICH ALL MUTUAL FUND INVESTORS PAY RANGE FROM ABOUT 060 FOR BOND FUNDS TO 1 OR SO FOR STOCK FUNDS THESE FEES WHICH ARE SUBTRACTED FROM THE FUNDS' ASSETS ARE DISCLOSED IN THE PROSPECTUS ADDING THE TWO TYPES OF FEES THE TOTAL COSTS OF PARTICIPATING IN MUTUAL FUND WRAPS CAN BE MORE THAN 3 IN THE HIGHESTCOST PROGRAMS AT SHEARSON AND PRUDENTIAL THE TOTALS RANGE AS HIGH AS 26 AND 255 RESPECTIVELY BUT AT ADVISERS WHO CHARGE 1 AND CHOOSE FUNDS FROM LOWEXPENSE MUTUAL FUND FAMILIES SUCH AS VANGUARD GROUP THE TOTAL COST CAN BE LESS THAN 15 A YEAR INVESTORS ALSO NEED TO TAKE A LOOK AT HOW THE ADVISER IS PAID IN ADDITION TO HIS FEE THAT THE INVESTOR PAYS SEE IF ANY OF THE ADVISER'S COMPENSATION IS BEING PAID FROM THE MUTUAL FUND COMPANY SAYS JOHN CAMMACK VICE PRESIDENT OF T ROWE PRICE MANAGEMENT CO SOME INVESTMENT COMPANIES PAY ADVISERS FEES TO STEER CLIENTS INTO THEIR PROGRAMS FOR EXAMPLE BROKERS OR PLANNERS WHO USE FUNDS IN A PROGRAM OFFERED BY ENTERPRISE CAPITAL MANAGEMENT INC ARE PAID 070 OF ASSETS BY THE MANAGEMENT COMPANY AND ALSO RECEIVE 030 ANNUALLY FROM THE MUTUAL FUND COMPANY VICTOR UGOLYN PRESIDENT OF ENTERPRISE CAPITAL MANAGEMENT SAYS THE TRAILING COMMISSION IS NO HIGHER THAN IT IS FOR WRAP ACCOUNTS IF YOU LOOK AT WHAT A TYPICAL WRAP FEE ARRANGEMENT IS WE'RE COMPETITIVE WHILE THIS IS A PERFECTLY LEGAL AND COMMON ARRANGEMENT IT'S IMPORTANT FOR INVESTORS TO CONSIDER IT'S POSSIBLE IT COULD BIAS THE ADVISER AND RAISE THE TOTAL FEES SINCE THE EXTRA COSTS ARE TYPICALLY PASSED ALONG TO INVESTORS SAYS MR CAMMACK STANLEY EGENER PRESIDENT OF NEUBERGER & BERMAN MANAGEMENT A PIONEER OF MUTUAL FUND WRAPS THAT DISTRIBUTES ITS FUNDS THROUGH FINANCIAL PLANNERS AND REGIONAL STOCK EXCHANGES SAYS THAT ADVISERS WON'T BRING IT UP IF INVESTORS DON'T ASK I THINK IT'S A LITTLE MUCH TO EXPECT THE SALESMAN TO SAY I COULD SELL YOU A FUND WITH A BETTER PERFORMANCE RECORD BUT IT DOESN'T PAY ME AS MUCH' NEUBERGER & BERMAN WHICH HAS MORE THAN 1 BILLION IN MUTUAL FUND WRAPS DOESN'T PAY ADVISERS INCENTIVE FEES TO PLACE CLIENTS IN ITS FUNDS EVEN IF NO CONFLICTS OF INTEREST EXIST INVESTORS STILL NEED TO PAY ATTENTION TO THE QUALIFICATIONS OF THE ADVISER WHILE SOME ARE MONEY MANAGERS WHO USE THIS STRUCTURE TO ACCOMMODATE SMALLER ACCOUNTS MANY ARE BROKERS WITH NO ASSETMANAGEMENT EXPERIENCE SUCH BROKERS OFTEN SUBSCRIBE TO SERVICES THAT PROVIDE THEM WITH ASSET ALLOCATION DECISIONS AND RISK TOLERANCE ANALYSIS THE PAGES OF SPECIALIZED PUBLICATIONS FOR BROKERS AND FINANCIAL PLANNERS ARE FILLED WITH ADVERTISEMENTS FOR THESE SOFTWARE PRODUCTS AND SERVICES AT BEST BAD ADVISERS HARVEST A FEE FOR DOING VERY LITTLE AT WORST THEY CAN CHOOSE FUNDS THAT LOSE MONEY AND MAY TEND TO MOVE CLIENTS IN AND OUT OF FUNDS TOO OFTEN TRIGGERING UNNECESSARY CAPITAL GAINS THAT ERODE AN INVESTOR'S REAL RETURN INVESTORS SHOULD ALSO CONSIDER WHETHER THE ADVISER PICKS FROM AN ADEQUATE SELECTION OF FUNDS MANY INDEPENDENT ADVISERS AND FINANCIAL PLANNERS CHOOSE FROM A UNIVERSE OF NOLOAD FUNDS AND LOAD FUNDS THAT WAIVE THEIR SALES FEES IF USED IN WRAP ARRANGEMENTS MUTUAL FUND COMPANIES SUCH AS FIDELITY ARE LIMITED TO THEIR OWN FAMILY OF FUNDS THIS MIGHT NOT BE A PROBLEM UNLESS THERE IS A LIMITED SELECTION OR THE FUNDS HAVE POOR RECORDS AND HIGH FEES GIVEN THE DRAWBACKS INVESTORS ATTRACTED TO MUTUAL FUND WRAPS MIGHT WANT TO CONSIDER SOME ALTERNATIVES IF ALL AN INVESTOR NEEDS IS HELP MAKING SOME BASIC DECISIONS ABOUT HOW TO DIVIDE MONEY AMONG VARIOUS TYPES OF FUNDS HE OR SHE MIGHT TRY ONE OF THE FREE ASSETALLOCATION ADVISORY SERVICES OFFERED BY DREYFUS CORP FIDELITY SHEARSON AND OTHER COMPANIES THESE SERVICES TELL AN INVESTOR WHICH FUNDS OR TYPES OF INVESTMENTS TO CHOOSE ANOTHER WAY TO GET SOME HELP IN CHOOSING FUNDS IS TO PAY A FEEONLY FINANCIAL ADVISER A ONETIME FEE TO RECOMMEND NOLOAD FUNDS THAT THE INVESTOR CAN INVEST IN DIRECTLY ON HIS OR HER OWN INVESTORS WITH SUBSTANTIAL ASSETS MIGHT WANT TO HIRE A MONEY MANAGER TO CONSTRUCT AN INDIVIDUALLY TAILORED PORTFOLIO OF INDIVIDUAL SECURITIES AND MUTUAL FUNDS A GROWING NUMBER OF FINANCIAL ADVISERS WILL CONSTRUCT PORTFOLIOS OF MUTUAL FUNDS IN EXCHANGE FOR A FEE THAT'S A PERCENTAGE OF ASSETS UNDER MANAGEMENT PRUDENTIAL SECURITIES INC'S TARGET PROGRAM WHICH CONSTRUCTS MUTUAL FUND PORTFOLIOS FOR CUSTOMERS USES NINE FUNDS CREATED FOR THE PROGRAM BUT MANAGED BY OUTSIDE MONEY MANAGERS A TABLE ACCOMPANYING WEDNESDAY'S YOUR MONEY MATTERS COLUMN DESCRIBED THE FUNDS SIMPLY AS PRUDENTIAL FUNDS SEE RELATED LETTER LETTERS TO THE EDITOR INVESTMENT CLIENT TAKES A BAD WRAP WSJ FEB 4 1993 9301060060 9302040088 930107 JAPAN'S NARUHITO DESPITE HIS HAIRCUT FINALLY FINDS A BRIDE ELATED CROWDS TAKE TO STREETS AS THE CROWN PRINCE PICKS AN EMPRESS FROM HARVARD BY YUMIKO ONO AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHEN THE NEWS BROKE LAST NIGHT ALL OF JAPAN WENT WILD TELEVISION NEWS SHOWS DITCHED THEIR SCRIPTS TO FOCUS ON THE ANNOUNCEMENT NEWSPAPERS RUSHED OUT EXTRAS IT'S BEEN DECIDED SHRIEKED AN ELDERLY WOMAN SNATCHING A PAPER FROM A YOUNG COUPLE IN THE GINZA NIGHTCLUB DISTRICT THE REPORT THE 32YEAROLD CROWN PRINCE NARUHITO SON OF THE EMPEROR AND HEIR TO THE CHRYSANTHEMUM THRONE HAD FINALLY CHOSEN A BRIDE WAS IT A DEMURE TRADITIONBOUND WOMAN WHO WOULD QUIETLY LIVE IN HIS SHADOW NOT NECESSARILY THE WOMAN WHO WILL ONE DAY BE EMPRESS OF JAPAN THE OLDEST HEREDITARY MONARCHY IN THE WORLD IS HARVARD CLASS OF '85 WORKS IN THE FOREIGN MINISTRY SPECIALIZING IN THE USJAPAN SEMICONDUCTOR TRADE AND SPEAKS A HANDFUL OF LANGUAGES THOUGH SHE COMES FROM AN ELITE FAMILY MASAKO OWADA 29 IS ALSO A COMMONER LIKE THE CURRENT EMPRESS I EXPECTED BIG THINGS OF HER BUT NOT EXACTLY THIS CHUCKLED JEFFREY SACHS A HARVARD ECONOMICS PROFESSOR WHO SUPERVISED MS OWADA'S SENIOR THESIS THE NATION TURNED EBULLIENT AND THE COMING MARRIAGE TOOK ON EXTRAORDINARY IF STRAINED SIGNIFICANCE PRINCE'S ENGAGEMENT VIEWED AS GOOD FOR ECONOMY DECLARED A KYODO WIRESERVICE ARTICLE QUOTING AN EXECUTIVE IN THE BATTERED SECURITIES INDUSTRY HE BELIEVES THE NEWS WILL BOOST JEWELRY AND APPAREL ISSUES AND THIS HEADLINE PAPER AND PULP MAKERS WELCOME CROWN PRINCE'S ENGAGEMENT IN JAPAN BIG EVENTS LIKE AN IMPERIAL WEDDING INCREASE THE DEMAND FOR NEWSPRINT EVEN THE RESERVED NIHON KEIZAI SHIMBUN THE NATION'S ECONOMIC DAILY PUT OUT A LATENIGHT EXTRA WHICH ANNOUNCED THAT THE DATE FOR THE CEREMONY WOULD BE SET SOON LAST NIGHT THE PRIVACYMINDED IMPERIAL HOUSEHOLD AGENCY STILL REFUSED TO OFFICIALLY CONFIRM THE ENGAGEMENT THOUGH AT THIS POINT THAT'S CONSIDERED A FORMALITY EVEN SO CROWDS SPONTANEOUSLY GATHERED AROUND YOUNG MEN HANDING OUT THE EXTRAS IN THE STREETS OF TOKYO IT'S GOING TO BE SO TOUGH FOR HER SHE'S GOING TO LOSE ALL HER FREEDOM SAID KAZUHISA TAKAHASHI A 32YEAROLD DOCTOR I'D SAY SHE'S OK ADDED MARIKO KIHARA MR TAKAHASHI'S FIANCEE SHE'S A WONDERFUL WOMAN SHE COULD HAVE PURSUED SUCH A DIFFERENT LIFE AS A CAREER WOMAN SAID 23YEAROLD HARUKO ISHIGAMI AN OFFICE WORKER I HOPE SHE WASN'T PRESSURED TOO MUCH BY THE PEOPLE AROUND HER RESERVATIONS ASIDE JAPAN SEEMED TO BE BREATHING A SIGH OF RELIEF HAPPY THAT THE AFFABLE PRINCE HAD FINALLY FOUND SOMEONE HIS FUTILE COURTSHIPS HAD GOTTEN LOTS OF PRESS ATTENTION THE WEEKLY SHUKAN BUNSHUN EVEN SUGGESTED HE CHANGE HIS HAIRSTYLE THE MAGAZINE THEN RETOUCHED PHOTOS OF THE PRINCE SHOWING HIM WITH 10 DIFFERENT HAIRSTYLES INCLUDING AN ELVIS DO EVERY CONTACT WITH A NEW WOMAN NO MATTER HOW BENIGN EARNED HEADLINES THE PRESS REPORTED SECRET OUTINGS BY THE PRINCE TO CHECK OUT PROSPECTIVE MATES AND WHEN HE HAPPENED TO MEET ACTRESS BROOKE SHIELDS SHE TOO SUDDENLY BECAME A CANDIDATE IN ALL AT LEAST 60 DIFFERENT WOMEN FOUND THEIR WAY INTO THE GOSSIP MAGAZINES AS POSSIBLE BRIDES SOME OF THOSE CANDIDATES GOT NIXED RIGHT OFF THE BAT MOST JAPANESE WOULD EXPECT THE BRIDE OF A CROWN PRINCE TO BE A VIRGIN NOT HAVE HER EARS PIERCED AND NOT BE TALLER THAN HER HUSBAND ALL OF THE SCRUTINY FINALLY PROMPTED THE IMPERIAL HOUSEHOLD AGENCY TO REQUEST A BLACKOUT ON COVERAGE OF THE MATTER THE JAPANESE MEDIA BOWED IN DEFERENCE TO THE REVERED IMPERIAL FAMILY AND FELL SILENT IT TURNED ITS ATTENTION INSTEAD TO THE DAILY TRAVAILS OF ENGLAND'S PRINCE CHARLES AND PRINCESS DIANA MS OWADA ONE OF ONLY A FEW FEMALE CAREER DIPLOMATS IN JAPAN MAY SEEM OVERQUALIFIED FOR HER NEW LARGELY CEREMONIAL JOB THE DAUGHTER OF THE FOREIGN MINISTRY'S VICE MINISTER THE TOP BUREAUCRAT SHE SPENT MUCH OF HER YOUTH ABROAD INCLUDING HIGH SCHOOL IN BELMONT MASS A SUBURB OF BOSTON SHE STUDIED ECONOMICS AT HARVARD WHERE SHE WROTE A SENIOR THESIS THAT INVOLVED CREATING AN ECONOMETRIC MODEL OF JAPANESE TRADE AND MEASURING THE EFFECT OF OIL PRICE INCREASES ON JAPAN'S ECONOMY SUNHEE JUHON A DENVER ATTORNEY KNEW MS OWADA AT LOWELL HOUSE THEIR HARVARD DORMITORY WHERE THEY OCCASIONALLY ATE LUNCH OR DINNER TOGETHER OTHERS AT HARVARD WHO HAD THE SAME LINEAGE AND WEALTH LET YOU KNOW IT SAYS MS JUHON BUT NOT MS OWADA SHE WAS ALWAYS VERY APPROACHABLE VERY FRIENDLY WITH HER INTELLIGENCE DRIVE AND PROFESSIONAL SUCCESS MS JUHON THINKS MS OWADA MIGHT SERVE AS SOMETHING OF A JAPANESE VERSION OF HILLARY CLINTON BECAUSE OF WHO SHE IS SHE WILL BE EMBLEMATIC OF A DIFFERENT KIND OF WOMAN FOR JAPAN IN ADDITION TO HARVARD MS OWADA STUDIED AT TOKYO UNIVERSITY AND OXFORD UNIVERSITY SHE ONCE ACTED AS AN INTERPRETER AT A MEETING BETWEEN JAPANESE LEADERS AND US TRADE REPRESENTATIVE CARLA HILLS SHE IS QUITE WELL INFORMED ABOUT SEMICONDUCTORS A FOREIGN MINISTRY COLLEAGUE NOTED AND THEN GIVING IN TO A LITTLE REALPOLITIK THIS IS A GOOD TIME FOR THE AMERICANS TO MAKE USE OF HER AS SOMEONE BENEFICIAL FOR THE US MS OWADA AND THE CROWN PRINCE REPORTEDLY MET IN 1986 AT A RECEPTION BUT IT WASN'T UNTIL LAST SUMMER THAT THE ROMANCE IS SAID TO HAVE BLOSSOMED LEADING TO THE PRINCE'S MARRIAGE PROPOSAL THE TWO HAVE OXFORD UNIVERSITY IN COMMON AS WELL AS AN INTEREST IN SPORTS PARTICULARLY SKIING THE PRINCE WHOSE FATHER IS A NOTED ICHTHYOLOGIST HAS ALSO WRITTEN HIS OWN ACADEMIC TREATISE A BOOK ON NAVIGATION OF THE THAMES RIVER IN ENGLAND THE WEDDING IS EXPECTED TO TAKE PLACE LATER THIS YEAR AND IF IT'S ANYTHING LIKE PAST IMPERIAL WEDDINGS IT WILL BE TRADITIONAL AND RITUALISTIC COMPLETE WITH 12LAYER KIMONO FOR THE BRIDE SAKE SIPPING AND SHINTO BLESSINGS AFTER THAT THE PRINCESS WILL BE EXPECTED TO CUT LOTS OF RIBBONS AND WAVE TO LOTS OF CROWDS EVERYONE HERE ASSUMES SHE'LL QUIT HER JOB JAPAN'S IMPERIAL FAMILY LEADS A BUSY BUT CIRCUMSCRIBED LIFE IT IS SEEN ON CAREFULLY SCRIPTED PUBLIC OCCASIONS SUCH AS THE NEW YEAR'S AUDIENCE LAST SATURDAY DURING WHICH THE FAMILY STOOD AND WAVED STIFFLY TO CROWDS GATHERED AT THE PALACE THE JAPANESE WHO CAME TO PAY THEIR RESPECTS WAVED SMALL RISINGSUN FLAGS OVERHEAD AND A FEW BOLD CELEBRANTS YELLED BANZAI HOORAY THE IMPERIAL FAMILY IS SHROUDED IN SECRECY UNDER THE EVERWATCHFUL EYE OF THE HOUSEHOLD AGENCY WHEN THE CROWN PRINCE'S YOUNGER BROTHER AKISHINO MARRIED IN 1990 A HAPLESS PHOTOGRAPHER CAUGHT HIM IN A MOMENT OF AFFECTION WITH HIS BRIDE HE WAS SMILING AS HIS WIFETOBE KIKO WAS STRAIGHTENING HIS HAIR THE PUBLIC LOVED IT BUT THE AGENCY WAS ENRAGED CHARGING THAT THE PHOTOGRAPH WAS TAKEN OUTSIDE THE PERMITTED PHOTO OPPORTUNITY PERIOD THE PHOTOGRAPHER TOOK SO MUCH HEAT HE QUIT HIS JOB LIKE IT OR NOT MS OWADA WILL NOW FALL UNDER SIMILAR SCRUTINY AND THE TRANSITION IS LIKELY TO BE SHARP AS RECENTLY AS A FEW MONTHS AGO SHE JOINED A GROUP OF WESTERN JOURNALISTS AND OTHERS IN A GAME OF DUCKDUCKGOOSE AT A PARTY IN TOKYO'S TRENDY OMOTESANDO DISTRICT SHE GAMELY CHASED AND WAS CHASED BY LAUGHING PARTICIPANTS IN THE CHILDREN'S SCHOOLYARD GAME NOW HER LIFE WILL BE CAREFULLY PRESCRIBED FIRST EVIDENCE HER ENGAGEMENT WON'T BE OFFICIAL UNTIL SHE GETS APPROVAL FROM AMONG OTHERS THE PRIME MINISTER OF JAPAN SEE RELATED LETTER LETTERS TO THE EDITOR ELUSIVE SCHOLAR WSJ FEB 4 1993 9301070044 9302040080 930119 CLINTON AND FAMILY VALUES BY PHYLLIS SCHLAFLY ANYONE WHO THINKS FAMILY VALUES WENT OUT OF STYLE WITH THE DEFEAT OF GEORGE BUSH MUST NOT HAVE READ THE EXIT POLLS TAKEN ON NOV 3 DESPITE UNREMITTING ATTEMPTS BY THE NATIONAL MEDIA TO DISCREDIT PROFAMILY AND PROLIFE REPUBLICANS 68 OF VOTERS IN THE EXIT POLLS SAID THEY WANT THE GOVERNMENT TO PROMOTE TRADITIONAL RATHER THAN NONTRADITIONAL FAMILY VALUES SIMILARLY POLLS AFTER THE REPUBLICAN CONVENTION SHOWED THAT MR BUSH HAD NEARLY CLOSED THE GAP WITH MR CLINTON TO TWO POINTS IN THE CBS/NEW YORK TIMES POLL IN OTHER WORDS FAMILY VALUES AND PROLIFE ACTIVISM WERE NOT THE REASONS MR BUSH LOST THE ECONOMY WAS THEY WERE THE REASONS HE RECEIVED AS MANY VOTES AS HE DID AS MR CLINTON PREPARES TO TAKE OFFICE HE AND HIS TEAM HAVE BEEN TALKING A LOT ABOUT THE ECONOMY THEY STRESS THAT TO FIX THE ECONOMY WE MUST FIRST FIX OUR EDUCATION AND HEALTH CARE SYSTEMS IT WOULD BE HARD TO FIND ANYONE WHO ARGUES THAT OUR EDUCATION AND HEALTH CARE SYSTEMS AREN'T IN DIRE NEED OF REFORM OUR ECONOMIC WELLBEING DEPENDS ON THEM BUT NEITHER IS SIMPLY AN ECONOMIC ISSUE BOTH ARE ALSO CORE FAMILYVALUES ISSUES AND MR CLINTON'S REFORMS WILL SAY A LOT ABOUT HOW HE VIEWS THE FAMILY IN PARTICULAR WHETHER HE THINKS GOVERNMENT OR INDIVIDUALS SHOULD MAKE THE KEY DECISIONS ABOUT WHAT IS BEST FOR FAMILIES IN EDUCATION THE CHIEF FAMILY ISSUE IS NOT WHETHER THE CLINTONS ARE HYPOCRITES FOR SENDING THEIR DAUGHTER TO A PRIVATE SCHOOL WHILE REFUSING TO SUPPORT CHOICE IN EDUCATION THE CHIEF QUESTIONS ARE WHY AMERICAN PARENTS WANT TO FLEE THE PUBLIC SCHOOLS AND WHY SO MANY CHILDREN ARE HELD HOSTAGE TO A FAILED SYSTEM THAT THUMBS ITS NOSE AT PARENTS EVERYONE IS AWARE OF THE SHOCKING RISE IN ILLITERACY THE CRIME AND VANDALISM IN THE SCHOOLS THE PLUNGING SAT SCORES THE EMBARRASSMENT OF US STUDENTS' PERFORMANCE IN INTERNATIONAL COMPETITION AND THE DISRUPTIVE EXPENSIVE BUSING THAT HAS FAILED ITS PURPOSE MORE DIRECTLY CONCERNED WITH FAMILY VALUES HOWEVER ARE PUBLIC SCHOOL CURRICULA THAT ATTACK FAMILY FAITH MORALS DISCIPLINE AND AUTHORITY WHEN PARENTS TODAY TALK ABOUT CHOICE IN EDUCATION THEY DON'T MEAN MERELY THE RIGHT TO CHOOSE ONE SCHOOL OVER ANOTHER THEY MEAN CHOICE IN PUBLIC SCHOOL CURRICULA ANGER OVER CURRICULUM CAME TO A BOILING POINT IN QUEENS NEW YORK THIS FALL WHEN A GUTSY GRANDMOTHER LED A DEMONSTRATION AGAINST THE SCHOOL ADMINISTRATION'S ORDER TO TEACH FIRSTGRADERS ABOUT HOMOSEXUALS A SIMILAR CONFRONTATION IS TAKING PLACE IN MICHIGAN WHERE THOUSANDS OF PARENTS HAVE CROWDED INTO A DOZEN HEARINGS AROUND THE STATE TO COMPLAIN ABOUT A CURRICULUM CALLED THE MICHIGAN MODEL FOR COMPREHENSIVE SCHOOL HEALTH EDUCATION MILLIONS OF TAXPAYER DOLLARS WERE SPENT TO DEVELOP AND FORCE THIS CURRICULUM ON THE SCHOOLS BUT PARENTS DECIDED THAT IT OFFENDS THEIR FAMILY VALUES A MICHIGAN SENATE COMMITTEE SET UP TO INVESTIGATE THE MICHIGAN MODEL RECENTLY REPORTED THAT 347 OF THE CURRICULUM'S 863 LEARNING OBJECTIVES DEAL WITH EMOTIONS RATHER THAN ACADEMICS PARENTS OBJECT TO THE WAY THE CURRICULUM TEACHES CHILDREN TO DECIDE FOR THEMSELVES INSTEAD OF CONSULTING THEIR PARENTS WHAT IS RIGHT AND WRONG IN ALL KINDS OF RISKTAKING SITUATIONS ESPECIALLY THOSE INVOLVING SEX AND SUBSTANCE ABUSE PARENTS ASSERTED AND THE MICHIGAN SENATE COMMITTEE CONCLUDED THAT BECAUSE OF MIXED MESSAGES ABOUT PREMARITAL SEX MICHIGAN MODEL LESSONS RESULT IN INCREASED ADOLESCENT SEXUAL PROMISCUITY PARENTS ALSO COMPLAINED THAT THE MICHIGAN MODEL INCLUDES REGULAR INVASIONS OF FAMILY AND STUDENT PRIVACY THAT IT USES TEACHERS TO CONDUCT AMATEUR PSYCHOTHERAPY IN THE CLASSROOM AND THAT IT USES EXERCISES AND PRACTICES COMMONLY ASSOCIATED WITH THE NEW AGE RELIGION WHEN PARENTS OBJECTED TO THESE ATTACKS ON FAMILY VALUES ACCORDING TO THE SENATE REPORT MICHIGAN DEPARTMENTS OF EDUCATION AND PUBLIC HEALTH ORGANIZED CAMPAIGNS TO DISCREDIT CONCERNED PARENTS HIGH ON THE LIST OF TRADITIONAL FAMILY VALUES MUST BE THE RIGHT TO BRING UP OUR OWN CHILDREN TO BELIEVE IN THE RELIGIOUS AND ETHICAL PRECEPTS WE CHERISH THAT RIGHT SEEMS TO BE SLIPPING AWAY FROM US AND WE WILL WATCH THE CLINTON ADMINISTRATION TO SEE WHETHER IT ACCELERATES OR SLOWS DOWN THE TREND THE SECOND AREA WHERE THE POLICIES OF THE CLINTON ADMINISTRATION WILL COME FACE TO FACE WITH FAMILY VALUES IS HEALTH CARE THE CLINTON TEAM HAS COME UP WITH WHAT IS SUPPOSED TO BE A MAGIC SOLUTION TO THE HEALTH CARE PROBLEM MANAGED COMPETITION UNDER MANAGED COMPETITION A NEW NATIONAL HEALTH BOARD WOULD DETERMINE WHAT THE STANDARD HEALTH INSURANCE PLAN WOULD BE FOR EVERYONE IN THIS COUNTRY YOU WOULD HAVE LITTLE CHOICE IN DOCTORS WHO WOULD BE SELECTED BY THE INSURANCE COMPANY EXECUTIVES AND THE MANAGERS OF YOUR EMPLOYER'S HEALTH BENEFITS PROGRAM DECISIONS AS TO HEALTH CARE AND TREATMENT WOULD BE MADE NOT BY PATIENTS AND THEIR DOCTORS BUT BY POLITICIANS WHO DECIDE WHAT IS TAX DEDUCTIBLE AND BY INSURANCE AND EMPLOYER EXECUTIVES WHO DECIDE HOW THEY WILL RATION THE FUNDS THEY ARE WILLING TO SPEND THE IDEA THAT A NATIONAL HEALTH BOARD CAN DECIDE THE APPROPRIATE HEALTH INSURANCE PLAN FOR EVERY FAMILY IN THE COUNTRY IS LUDICROUS WE ALREADY HAVE THE OREGON EXPERIENCE TO TELL US HOW A GOVERNMENT HEALTH BOARD MIGHT DETERMINE WHAT YOUR FAMILY'S HEALTH INSURANCE WILL COVER AND EXCLUDE OREGON DEVISED A PLAN TO EXPAND MEDICAID ELIGIBILITY BY CONTAINING COSTS THROUGH RATIONING OF HEALTH CARE THE RATIONING SCHEME LISTED 700PLUS SERVICES IN AN ORDER DETERMINED THROUGH THE POLITICAL PROCESS THE SERVICES IN THE TOP HALF OF OREGON'S PRIORITIES INCLUDED TREATMENT FOR WITHDRAWAL FROM ALCOHOL AND OTHER DRUGS STERILIZATION PROCEDURES BIRTH CONTROL AND ABORTION PROCEDURES THAT RANKED LOWER ON OREGON'S PRIORITIES INCLUDED OPERATIONS THAT MIGHT PREVENT BLINDNESS SURGICAL PROCEDURES FOR CEREBRAL PALSY TREATMENT OF MISCARRIAGE SURGERY FOR BABIES BORN WITH DISLOCATED HIPS AND THERAPY FOR PATIENTS WITH METASTATIC CANCER WHO HAD LESS THAN A 10 CHANCE OF SURVIVING FIVE YEARS IF YOU WERE CHOOSING HOW TO SPEND YOUR OWN MONEY YOUR PREFERENCES MIGHT BE DIFFERENT OTHER FAMILY ISSUES ARE INHERENT IN THE DEVELOPMENT OF A NATIONAL HEALTH POLICY THERE CAN'T BE ANY REAL REFORM IN HEALTH CARE UNTIL CONGRESS REMEDIES THE FUNDAMENTAL UNFAIRNESS OF THE PRESENT SYSTEM UNDER WHICH FULLTIME EMPLOYEES OF BIG COMPANIES RECEIVE THEIR HEALTH CARE WITH PRETAX DOLLARS WHILE THE SELFEMPLOYED AND EMPLOYEES OF SMALLER COMPANIES THAT CANNOT AFFORD A HEALTH PLAN MUST BUY ALL THEIR HEALTH INSURANCE WITH AFTERTAX DOLLARS FEDERAL TAX POLICY DICTATING THIS DISCRIMINATORY TREATMENT BETWEEN A CORPORATION EXECUTIVE AND A WAITRESS IN BUYING HEALTH INSURANCE IS UNCONSCIONABLE THE PRESENT SYSTEM THAT TIES HEALTH CARE WITH PRETAX DOLLARS TO FULLTIME CAREER EMPLOYMENT IS GRIEVOUSLY UNFAIR TO EVERYONE BUT PARTICULARLY TO WOMEN WORKERS IT IS ESPECIALLY HARD ON THE WOMAN WHO WANTS TO WORK PART TIME OR OCCASIONALLY BUT DOESN'T DARE QUIT HER JOB BECAUSE SHE CAN'T AFFORD TO GIVE UP HER FAMILY'S HEALTH INSURANCE HEALTH INSURANCE SHOULD BE PERSONAL AND PORTABLE AND THAT CAN BEST BE ACHIEVED BY TAXFREE MEDICAL IRAS OWNED BY INDIVIDUALS NOT EMPLOYERS ALL EXPERIENCE WITH MANAGED SOCIAL PROGRAMS SHOWS THAT THEY DRIVE COSTS UP IF A NATIONAL COMPUTER BOARD WERE SET UP TO CHOOSE YOUR COMPUTER BECAUSE CONGRESS DECIDED YOU ARE NOT SMART ENOUGH TO SELECT YOUR OWN DO YOU THINK THE PRICE OF PCS WOULD GO DOWN OR UP THE COMPETITION OF INDIVIDUAL MEDICAL IRAS IS THE BEST WAY TO KEEP PRICES DOWN THE PUNDITS WHO WRITE ABOUT THE ALLEGED RIFT OVER FAMILY VALUES BETWEEN THE ECONOMIC CONSERVATIVES AND THE SOCIAL CONSERVATIVES ARE OUTLINING A BATTLE THAT DOESN'T EXIST IN THE REAL WORLD BOTH THE SCHOOL ISSUE AND THE HEALTH ISSUE ARE FAMILY VALUES ISSUES AS WELL AS ECONOMIC ONES MRS SCHLAFLY AN ATTORNEY IS THE AUTHOR OF 13 BOOKS AND PRESIDENT OF EAGLE FORUM A CONSERVATIVE PROFAMILY ORGANIZATION BASED IN ALTON ILL AND WASHINGTON DC SEE RELATED LETTER LETTERS TO THE EDITOR SCHLAFLY'S STANCE FULL OF INTOLERANCE WSJ FEB 4 1993 9301190021 9302030202 930203 ONTARIO INTRODUCES BILL TO CUT POLLUTION BY PULP PAPER MILLS TORONTO THE ONTARIO GOVERNMENT INTRODUCED A CLEANWATER BILL AIMED AT SHARPLY REDUCING IN THE NEXT 10 YEARS THE AMOUNT OF POLLUTANTS DISCHARGED BY THE PROVINCE'S PULP AND PAPER MILLS THE PROPOSED REGULATIONS COVER 26 MILLS BUT ARE TOUGHEST ON THE PROVINCE'S EIGHT KRAFT PULP MILLS BY 1995 THESE EIGHT MILLS WOULD BE REQUIRED TO CUT THEIR DISCHARGE OF ORGANOCHLORINES A GROUP OF CHLORINEBASED COMPOUNDS TO 15 KILOGRAMS 33 POUNDS A METRIC TON 22046 POUNDS OF DRIED PULP FROM THE CURRENT LIMIT OF 25 KILOGRAMS THEY WOULD BE REQUIRED TO FURTHER REDUCE THE RATE TO 08 KILOGRAMS A TON BY 1999 THE EIGHT KRAFT PULP MILLS ALSO WOULD HAVE TO DEVELOP PLANS TO ELIMINATE ORGANOCHLORINE DISCHARGES ENTIRELY BY 2002 BUT THE BILL PROPOSES ZERODISCHARGE AS A GOAL RATHER THAN A REGULATION ALL 26 MILLS WOULD BE REQUIRED TO SHARPLY REDUCE DISCHARGES OF EIGHT OTHER SUBSTANCES BY 1995 THE SUBSTANCES INCLUDE PHOSPHOROUS CHLOROFORM TOLUENE PHENOL DIOXINS AND FURANS EACH MILL ALSO WOULD FACE A TOXICITY TEST THAT WOULD REQUIRE THAT FISH BE ABLE TO SURVIVE IN THE MILL'S WASTEWATER MARIE RAUTER PRESIDENT OF THE ONTARIO FOREST INDUSTRIES ASSOCIATION SAID THE 1995 REDUCTIONS WOULD COST THE INDUSTRY ABOUT 600 MILLION CANADIAN DOLLARS US475 MILLION AND THE REDUCTIONS PROPOSED BY 1999 WOULD COST ANOTHER C200 MILLION SHE SAID THE ASSOCIATION DOESN'T SUPPORT THE REDUCTION OF ORGANOCHLORINES BELOW 15 KILOGRAMS A TON BECAUSE RECENT STUDIES HAVEN'T FOUND ANY LINK BETWEEN ORGANOCHLORINES AND ABNORMALITIES IN FISH THE ONTARIO BILL IS SIMILAR TO THOSE RECENTLY INTRODUCED IN TWO OTHER CANADIAN PROVINCES QUEBEC AND BRITISH COLUMBIA THE ONTARIO BILL ISN'T AS TOUGH AS THE PROPOSED BRITISH COLUMBIA REGULATIONS WHICH WOULD ELIMINATE ORGANOCHLORINE DISCHARGES BY 2002 9302030201 930203 DIVIDEND NEWS FOOD LION'S PAYOUT IS DELAYED FOLLOWING FALLOUT OF NEWS STORY SALISBURY NC FOOD LION INC STILL GRAPPLING WITH THE FALLOUT FROM A CRITICAL TELEVISION REPORT THAT HURT SALES SAID ITS FIRSTQUARTER DIVIDEND HAS BEEN DELAYED THE COMPANY WHICH OPERATES SOME 1000 SUPERMARKETS PRIMARILY IN THE SOUTH SAID ITS BOARD WANTS TO REVIEW SALES RESULTS FOR THE 1992 FOURTH QUARTER BEFORE MAKING ANY DECISION ON THE PAYOUT OF 28 CENTS A SHARE THE BOARD PLANS TO MEET NEXT WEEK WE'VE HAD AN UNUSUAL FOURTH QUARTER A SPOKESMAN SAID IT'S THE PRUDENT THING TO DO THE QUARTER WAS MARKED BY A BROADCAST IN EARLY NOVEMBER ON PRIME TIME LIVE ON THE ABC NETWORK THE SHOW CHARGED THAT SOME FOOD LION STORES FAILED TO KEEP FACILITIES CLEAN AND DECEIVED SHOPPERS ABOUT THE FRESHNESS OF MEAT AND FISH AT THE TIME FOOD LION SAID IT WAS TAKING THE CHARGES SERIOUSLY BUT IT DENIED THAT ITS STORES POSED THE HEALTH PROBLEMS CITED THE BROADCAST HOWEVER PROMPTED A 95 DECLINE IN NOVEMBER SAMESTORE SALES WHICH HAD BEEN FLAT FOR MUCH OF THE YEAR THE COMPANY HAS ALREADY STATED THAT FOURTHQUARTER EARNINGS WILL BE LOWER THAN FIRST EXPECTED BECAUSE OF PUBLICITY STEMMING FROM THE BROADCAST COMBINED WITH INCREASED PROMOTIONAL COSTS TO LURE CUSTOMERS BACK TO FOOD LION STORES IN THE 1991 FOURTH QUARTER THE COMPANY A UNIT OF DELHAIZE LE LION SA OF BELGIUM REPORTED EARNINGS OF 608 MILLION OR 19 CENTS A SHARE ON REVENUE OF 202 BILLION A SPOKESMAN SAID THE DIVIDEND WHICH IS PAID ON BOTH THE CLASS A AND CLASS B OR VOTING SHARES WAS PAID IN JANUARY IN EACH OF THE PAST TWO YEARS HE SAID THE COMPANY HADN'T PUBLICIZED ITS DECISION TO DELAY THE DIVIDEND RATHER INQUIRIES FROM SHAREHOLDERS PROMPTED AN ACKNOWLEDGEMENT OF THE DELAY IN OVERTHECOUNTER TRADING TUESDAY FOOD LION'S CLASS A SHARES CLOSED AT 725 A SHARE DOWN DOWN 125 CENTS WHILE ITS CLASS B SHARES CLOSED AT 7375 DOWN 25 CENTS 9302030200 930203 MEDICINE SENATE STUDY OF DRUG PRICES COULD PROVE A BITTER PILL FOR PHARMACEUTICAL MAKERS BY ELYSE TANOUYE AND MICHAEL WALDHOLZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PHARMACEUTICAL COMPANIES HAVE BEEN SCRAMBLING ALL WEEK TO RESPOND TO A POTENTIALLY EMBARRASSING CONGRESSIONAL STUDY OF PRICE INCREASES FOR PRESCRIPTION DRUGS THE REPORT TO BE RELEASED TODAY BY DEMOCRATIC SEN DAVID PRYOR OF ARKANSAS AND REPUBLICAN SEN WILLIAM COHEN OF MAINE IS EXPECTED TO SHOW THAT MAJOR DRUG COMPANIES BROKE PUBLIC PROMISES TO HOLD PRICE INCREASES BELOW THE INFLATION RATE IN 1992 THE SENATORS ARE EXPECTED TO USE THE STUDY TO ARGUE THAT REGULATIONS ARE NEEDED TO CONTROL THE INDUSTRY BECAUSE DRUG MAKERS CAN'T BE TRUSTED TO RESTRAIN PRICE RISES VOLUNTARILY IN RECENT WEEKS SEVERAL OF THE COUNTRY'S LARGEST DRUG COMPANIES INCLUDING MERCK & CO GLAXO HOLDINGS PLC PFIZER INC AND AMERICAN HOME PRODUCTS CORP HAVE PLEDGED TO KEEP PRICE INCREASES ON AVERAGE BELOW THE RATE OF INFLATION MOREOVER COMPANIES HAVE TOLD THE CLINTON ADMINISTRATION THAT GOVERNMENT PRICE CONTROLS AREN'T NECESSARY BECAUSE THE INDUSTRY IS MODERATING PRICES ON ITS OWN IN ANNOUNCING TODAY'S NEWS CONFERENCE ABOUT THE STUDY SEN PRYOR SAID LAST WEEK THAT THIS REPORT ADDS TO THE MOUNTING EVIDENCE THAT VOLUNTARY PRICE RESTRAINTS SIMPLY DON'T WORK THE DRUG INDUSTRY'S TRACK RECORD JUST DOESN'T SUPPORT THEIR SOCALLED GOODFAITH' INTENTIONS THE STUDY'S DETAILS WERE KEPT UNDER WRAPS BY THE SENATORS AND THEIR SPECIAL COMMITTEE ON AGING THIS WEEK BUT ACCORDING TO STEPHEN W SCHONDELMEYER A UNIVERSITY OF MINNESOTA PROFESSOR WHO ANALYZED THE DATA THE STUDY LOOKS STRICTLY AT THE PRICE INCREASES PAID BY PHARMACIES WHICH THEN PASS ALONG THE INCREASES TO CONSUMERS ABOUT 80 OF PRESCRIPTION DRUGS ARE SOLD THROUGH THIS RETAIL MARKET HE SAYS THE DATA DON'T INCLUDE PRICES PAID BY HOSPITALS HE ADDS ALL TOLD 1992 PRICE INCREASES PAID BY PHARMACIES FOR ALL PRESCRIPTION MEDICINES ROSE MORE THAN 6 TWICE THE INFLATION RATE OF ABOUT 3 HE SAYS THE INDUSTRY REACTED ANXIOUSLY TO WORD OF THE REPORT'S RELEASE PARTICULARLY CONCERNED THAT ADVERSE PUBLICITY ABOUT PRICES WILL DERAIL EFFORTS TO FORESTALL GOVERNMENT PRICE CONTROLS TOP INDUSTRY EXECUTIVES DISCUSSED STRATEGIES FOR RESPONDING TO THE STUDY DURING TWO CONFERENCE CALLS ON MONDAY AND TUESDAY THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SENT A LETTER TO SEN PRYOR ON MONDAY REQUESTING THAT THE RELEASE OF THE REPORT BE DELAYED UNTIL THE COMPANIES HAD AN OPPORTUNITY TO REVIEW IT AND MEET WITH THE SENATORS BUT ACCORDING TO ONE OF HIS AIDES SEN PRYOR REFUSED TO DELAY THE RELEASE AND SAID A MEETING WASN'T NECESSARY IN HIS STUDY OF DRUG PRICES DR SCHONDELMEYER TRACKED INCREASES IN THE AVERAGE WHOLESALE PRICE THE EQUIVALENT OF A LIST PRICE OF 165 BRANDED PRESCRIPTION DRUGS SINCE 1987 BASED ON HIS ANALYSIS DR SCHONDELMEYER FOUND 38 MAJOR DRUGS HAD PRICE INCREASES BETWEEN 97 AND 186 IN 1992 AND MANY OF THE DRUGS HAD CUMULATIVE INCREASES OF MORE THAN 100 SINCE 1987 DR SCHONDELMEYER WHO IS DIRECTOR OF THE UNIVERSITY OF MINNESOTA'S PRIME INSTITUTE AND A PROFESSOR AT THE UNIVERSITY'S COLLEGE OF PHARMACY SAID THE AVERAGE PERSON PAYING OUT OF POCKET ENDS UP PAYING THE HIGHEST PRICE IN THE MARKET IN THE WORLD AND HAVING THE HIGHEST RATE OF INFLATION THE CONGRESSIONAL COMMITTEE'S REPORT IS EXPECTED TO TAKE DR SCHONDELMEYER'S DATA AND SHOW THAT THE COMPANIES THAT PLEDGED TO HOLD PRICE INCREASES BELOW INFLATION ACTUALLY RAISED AVERAGE WHOLESALE PRICES ON DRUGS SOLD TO PHARMACIES BY MORE THAN THE GENERAL RATE OF INFLATION BUT THE PHARMACEUTICAL ASSOCIATION ARGUED IN A NEWS RELEASE YESTERDAY THAT THE INFORMATION USED IN THE STUDY IS MISLEADING AND ITS CONCLUSIONS INACCURATE BECAUSE DISCOUNTS REBATES AND OTHER PRICE REDUCTIONS AREN'T INCLUDED THE TRADE ASSOCIATION ADDED THAT THE PHARMACEUTICAL COMPANIES THAT PLEDGED TO HOLD DOWN PRICE INCREASES INCLUDED ACTUAL PRICES FOR EACH COMPANY'S ENTIRE PRODUCT LINE USUALLY WEIGHTED BY SALES ACCORDING TO THE ASSOCIATION THE COMPANIES PLEDGED IN 1992 TO KEEP PRICES ON AVERAGE AT OR BELOW THE GENERAL RATE OF INFLATION THE COMPANIES ARE MERCK DU PONT MERCK PHARMACEUTICAL CO EASTMAN KODAK CO'S STERLING UNIT MARION MERRELL DOW INC IMPERIAL CHEMICAL INDUSTRIES PLC ROCHE HOLDING LTD'S HOFFMANNLA ROCHE INC UNIT AND PFIZER PFIZER DECIDED TO HEAD OFF THE CONTROVERSY BY ISSUING A STATEMENT YESTERDAY CONTENDING THAT ITS PHARMACEUTICAL PRICE INCREASE IN 1992 TAKING INTO ACCOUNT REBATES TO MEDICAID WAS LESS THAN 2 DU PONT MERCK A JOINT VENTURE BETWEEN DU PONT CO AND MERCK ARGUED THAT ALTHOUGH THE WHOLESALE PRICE FOR SEVERAL KEY DRUGS SHOWED SUBSTANTIAL INCREASES THE PRICE THE COMPANY ACTUALLY RECEIVED AFTER REBATES AND DISCOUNTS WAS SIGNIFICANTLY LOWER FOR EXAMPLE IT SAID THE AVERAGE WHOLESALE PRICE FOR SINEMET ROSE 151 LAST YEAR BUT DU PONT MERCK ACTUALLY RECEIVED A 4 INCREASE THE AVERAGE WHOLESALE PRICE OF PERCOCET ROSE 103 BUT AFTER REBATES AND DISCOUNTS THE PRICE ACTUALLY DECLINED 66 ACCORDING TO THE COMPANY MERCK CONTENDED YESTERDAY THAT ITS PRICES INCREASED 31 BEFORE REBATES AND DISCOUNTS AND 27 AFTER THEM ACCORDING TO A SEPARATE SIMILAR STUDY BY INDUSTRY ANALYST ROBERT H UHL JR OF CURRAN CAPITAL MANAGEMENT PRICE INCREASES BY COMPANIES THAT PLEDGED TO MODERATE PRICE INCREASES EXCEEDED INFLATION LAST YEAR PFIZER'S AVERAGE WHOLESALE PRICES AND DIRECT PRICES TO PHARMACIES INCREASED 51 MERCK'S 37 HOFFMANNLA ROCHE'S 9 AMERICAN HOME'S 66 ICI PHARMACEUTICALS' 65 AND MARION MERRELL DOW'S 84 ACCORDING TO HIS STUDY THE DEBATE OVER THESE NUMBERS POINTS UP THE DIFFICULTY OF ACCURATELY ASSESSING COMPANY PRICING POLICIES AND RAISES QUESTIONS ABOUT WHETHER THE INDUSTRY CAN PERSUADE THE CLINTON ADMINISTRATION AND CONGRESS TO TRUST ITS SELFREGULATION EFFORTS THE DRUG COMPANIES ARE FRUSTRATED BY THEIR INABILITY TO PRESENT A FORMAL AND UNIFIED PRICING POLICY TO THE GOVERNMENT BECAUSE INDUSTRY LAWYERS HAVE WARNED THE COMPANIES THAT ANY DISCUSSION ABOUT PRICING WOULD VIOLATE FEDERAL ANTITRUST LAWS 9302030199 930203 WHO'S NEWS DRUG EMPORIUM INC RESHUFFLES EXECUTIVES PLANS STORE CLOSINGS COLUMBUS OHIO DRUG EMPORIUM INC THE DEEPDISCOUNT DRUG STORE CHAIN THAT IS GRAPPLING WITH FINANCIAL DIFFICULTIES ANNOUNCED A RESHUFFLING OF EXECUTIVE RESPONSIBILITIES AND SAID IT WILL CLOSE SEVERAL STORES THAT AREN'T GENERATING ADEQUATE RETURNS JANE H LAGUSCH CORPORATE SECRETARY SAID UNDER 10 OF THE COMPANY'S 136 STORES WILL BE CLOSED THE COMPANY FRANCHISES AN ADDITIONAL 98 STORES MS LAGUSCH SAID THE COMPANY WHICH POSTED A NET LOSS OF 22 MILLION OR 17 CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED NOV 28 ALSO HAS CUT EXECUTIVE AND MANAGEMENT PAY BY 5 AND HAS ELIMINATED SOME EXECUTIVE PERQUISITES THE COMPANY HAS BEEN IN TURMOIL THE PAST TWO YEARS LOSING TWO CHIEF FINANCIAL OFFICERS LAST YEAR THE COMPANY'S FOUNDING CHAIRMAN AND CHIEF EXECUTIVE OFFICER PHILIP I WILBER RETIRED THREE EXECUTIVES WERE DISMISSED AFTER MR WILBER'S SUCCESSOR DAVID L KRIEGEL TOOK OVER JAN 7 UNDER A FURTHER REORGANIZATION ANNOUNCED YESTERDAY ROBERT E LYONS 42 YEARS OLD WHO HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER WAS REASSIGNED AS SENIOR VICE PRESIDENT WITH RESPONSIBILITIES IN MARKETING AND MERCHANDISING MR LYONS RESIGNED AS A DIRECTOR AND WAS SUCCEEDED BY WILLIAM L SWEET 45 AN ATTORNEY IN FORT WAYNE IND MS LAGUSCH SAID THE COMPANY IS NOT LOOKING FOR A SUCCESSOR FOR MR LYONS'S OTHER POSTS MS LAGUSCH 46 WAS GIVEN THE ADDED POST OF VICE PRESIDENT KEITH E ALESSI 38 CHAIRMAN CHIEF EXECUTIVE AND OWNER OF CLOSELY HELD VIRGINIA SUPERMARKETS INC NORFOLK VA WAS NAMED ACTING CHIEF FINANCIAL OFFICER FILLING A VACANCY CREATED WHEN STEPHEN R POHLIT RESIGNED IN NOVEMBER GARY WILBER 42 VICE CHAIRMAN AND SON OF FOUNDER PHILIP WILBER WAS GIVEN THE ADDED POST OF TREASURER THE LARGELY CEREMONIAL POST WAS PREVIOUSLY HELD BY HIS STEPMOTHER AND PHILIP WILBER'S WIFE CATHERINE K WILBER THE BOARD APPROVED THE PREVIOUSLY ANNOUNCED PLAN TO ACQUIRE 16 MILLION SHARES OF COMMON STOCK FROM PHILIP WILBER AD PELUNIS AND OTHER SHAREHOLDERS 9302030198 930203 INTERNATIONAL DAF NV FILES FOR PROTECTION FROM CREDITORS BY MARTIN DU BOIS AND TIMOTHY AEPPEL STAFF REPORTERS OF THE WALL STREET JOURNAL EINDHOVEN THE NETHERLANDS AFTER EFFORTS TO COME UP WITH A BAILOUT PACKAGE FAILED DUTCH TRUCK MAKER DAF NV WAS FORCED TO SEEK COURT PROTECTION FROM ITS CREDITORS DAF HAD LONG STRUGGLED TO STANCH A SEA OF RED INK SEEKING CASH INFUSIONS FROM ITS BANKS AS WELL AS FROM THE DUTCH AND BELGIAN GOVERNMENTS CREDITORS AND THE GOVERNMENTS HAD BEEN WRESTLING WITH A RESCUE PLAN TOTALING 18 BILLION GUILDERS 9781 MILLION BUT DAF GOT CAUGHT IN A TUGOFWAR WITH ALL SIDES TRYING TO LIMIT THEIR FINANCIAL EXPOSURE AND GRAB HOLD OF THE BEST SECURITY AVAILABLE FOR NEW LOANS DAF'S BANKING CONSORTIUM IS LED BY ABNAMRO BANK OF THE NETHERLANDS DAF IS NOW IN THE HANDS OF TWO ADMINISTRATORS APPOINTED BY THE DISTRICT COURT IN 'S HERTOGENBOSCH THE NETHERLANDS AS MANY AS 13500 JOBS ARE AT STAKE IN THE NETHERLANDS BRITAIN AND BELGIUM AS DAF ENTERS THE DUTCH EQUIVALENT OF CHAPTER 11 OF THE US BANKRUPTCY CODE DAF IS BY FAR THE WEAKEST OF EUROPE'S BIG TRUCK MAKERS BUT ITS PLIGHT UNDERSCORES PROBLEMS FACING THE WHOLE INDUSTRY WITH TRUCK SALES DECLINING ACROSS EUROPE MANUFACTURERS ARE STUCK WITH MASSIVE OVERCAPACITY AND ARE BRACING FOR COLLAPSING PROFITS AT LEAST THROUGH THE MIDDLE OF THE DECADE EVEN MARKETLEADER MERCEDESBENZ AG A UNIT OF GERMANY'S DAIMLERBENZ AG HAS PUT ITS TRUCK PLANTS ON SHORTENED SHIFTS DAF WHICH HAS AN ESTIMATED THREE BILLION TO 35 BILLION GUILDERS IN BANK DEBT HAS RACKED UP LOSSES OF MORE THAN 800 MILLION GUILDERS IN THE PAST THREE YEARS FEW ANALYSTS BELIEVE THE COMPANY WILL SURVIVE AS IT NOW EXISTS MANY EXPECT DAF WILL BE BROKEN UP INTO DIFFERENT PARTS WITH ONLY THE COMPANY'S POTENTIALLY PROMISING HEAVYTRUCK MANUFACTURING OPERATIONS BENEFITING FROM A BAILOUT 9302030197 930203 WHO'S NEWS VARLEN CORP VARLEN CORP NAPERVILLE ILL RAYMOND A JEAN FORMERLY A GROUP VICE PRESIDENT OF THIS INDUSTRIAL PRODUCTS CONCERN WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9302030196 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE ALTERED ALLIANCE MILITARY STRATEGISTS SHARE A COMMON PREDICTION NATO WILL BE UNRECOGNIZABLE IF IT EXISTS AT ALL BY TIMOTHY AEPPEL FEB 3 2003 FEW EUROPEANS HAD HEARD OF HASSAN GODFREY UNTIL A FEW WEEKS AGO BUT THAT WAS BEFORE THE 34YEAROLD BRITISH CONVERT TO ISLAM AND MEMBER OF THE WARRIORS OF ALLAH TERRORIST GROUP HELPED STAGE A DARING MISSILE ASSAULT ON THE ITALIAN PORT OF NAPLES THE 14 CHEMICALTIPPED SCUDS FIRED FROM A BASE IN THE LIBYAN DESERT DROPPED HARMLESSLY INTO THE SEA OFF THE ITALIAN COAST CHRISTMAS EVE BUT THE ATTACK THE MOST BRAZEN OF ITS KIND SINCE THE KURDISTAN CRISIS RENEWED CALLS TERRORISTS NESTLED AMONG THE SAND DUNES OF NORTH AFRICA ARE JUST ONE VISION THAT EMERGES WHEN DEFENSE EXPERTS ARE ASKED TO LET THEIR IMAGINATIONS RUN WILD OTHER POTENTIAL HOT SPOTS A DECADE FROM NOW COULD INCLUDE MUCH OF EASTERN EUROPE THE FORMER SOVIET UNION AND THE MIDDLE EAST BUT WHILE THERE IS NO SHORTAGE OF CRISIS SCENARIOS THERE IS AGREEMENT ON ONE THING THE NORTH ATLANTIC TREATY ORGANIZATION THE GUARANTOR OF EUROPEAN PEACE THROUGHOUT THE COLD WAR WILL RESHAPE ITSELF BEYOND RECOGNITION PEOPLE WILL LOOK BACK AT THE EARLY 1990S AND SEE IT AS A TURNING POINT SAYS ONE FORMER NATO OFFICIAL THE QUESTION IS WHAT SORT OF TURNING POINT IT WILL BE ADDS STEFANO SILVESTRI VICE PRESIDENT OF ROME'S INSTITUTE OF INTERNATIONAL AFFAIRS AN INDEPENDENT THINK TANK WE USED TO PRODUCE LONGTERM SCENARIOS FOR EUROPEAN DEFENSE BUT WE RECENTLY DECIDED IT MADE NO SENSE ANYMORE YOU ALWAYS END UP WITH A LOT OF IFS IFS IFS HOW THE CURRENT CRISIS IN THE FORMER YUGOSLAVIA IS RESOLVED COULD WELL POINT THE WAY ANALYSTS BELIEVE THAT IF NATO PROVES INCAPABLE OF DEALING WITH THE CRISIS THE WITHERING AWAY OF THE ALLIANCE WILL ACCELERATE ACCORDING TO THIS VIEW THE US WOULD CONCLUDE THAT EUROPE IS UNWILLING TO GET SERIOUS ABOUT ITS OWN DEFENSE WHILE EUROPEANS WOULD BLAME WASHINGTON AND ONE ANOTHER FOR THE DEBACLE THERE WOULD BE LITTLE TO STOP SIMILAR CONFLICTS FROM SPILLING OUT ACROSS EASTERN EUROPE AND THE FORMER SOVIET UNION ALTERNATIVELY THE EUROPEANS MIGHT LAUNCH AN OPERATION LINKED TO NATO BUT INSPIRED BY A NEW SENSE OF EUROPEAN UNITY THAT OPERATION COULD LAY THE GROUNDWORK FOR A FUTURE EUROPEAN DEFENSE STRUCTURE NO ONE IS SURE HOW LOW THE US PROFILE IN EUROPE WILL SINK BY 2003 BUT THE DAYS OF UNQUESTIONED US LEADERSHIP ARE NUMBERED PRESIDENT CLINTON ALREADY HAS SUGGESTED THAT US FORCES IN EUROPE COULD BE CUT BELOW 100000 BY MIDDECADE I COULD ENVISION THE US GETTING INVOLVED IN THE WRONG SORT OF CRISIS IN THE MIDDLE EAST AND THEN GERMANY NOT WANTING US TROOPS ON THEIR SOIL AT ALL SAYS TREVOR TAYLOR A DEFENSE SPECIALIST AT THE ROYAL INSTITUTE OF INTERNATIONAL AFFAIRS IN LONDON AN ECONOMIC CRISIS IN THE US COULD ALSO WEAKEN THE DESIRE TO SPEND MONEY ON TROOPS FEW SEE A REAL EUROPEAN ARMY ARISING TO FILL THE VOID THERE ARE TOO MANY POINTS OF DISAGREEMENT AMONG THE EUROPEANS OVER WHAT SUCH AN ARMY WOULD DO AND HOW IT WOULD BE STRUCTURED AND WITH EUROPEAN DEFENSE BUDGETS FALLING THERE IS LITTLE FINANCING AVAILABLE FOR CREATING GRAND NEW STRUCTURES STILL MR TAYLOR AND OTHER ANALYSTS SAY THAT IF INTEGRATION PROGRESSES IN EUROPE THERE COULD BE MORE MULTINATIONAL DEFENSE UNITS AND GREATER COOPERATION ON POOLING MILITARY EQUIPMENT AND WITH FREER MOVEMENT OF LABOR ACROSS BORDERS THERE COULD BE A BROADER MIX OF NATIONALITIES INSIDE MILITARY FORCES WE MAY SEE OUR ARMIES LOOKING MORE AND MORE LIKE OUR SOCCER TEAMS SAYS MR TAYLOR FEB 3 2003 EUROPEAN DEFENSE MINISTERS GATHERED IN GENEVA YESTERDAY TO CONSIDER IMPOSING SANCTIONS AGAINST THE RIGHTIST GOVERNMENT OF EAST PRUSSIA POLISH AUTHORITIES DECLARED A STATE OF EMERGENCY IN REGIONS BORDERING EAST PRUSSIA LAST WEEK AFTER OFFICIALS IN KOENIGSBERG FORMERLY KALININGRAD ANNOUNCED THEIR INTENTION TO FORCIBLY RECLAIM TERRITORY CEDED TO POLAND AFTER WORLD WAR II EAST PRUSSIA GAINED INDEPENDENCE FROM RUSSIA LAST YEAR AFTER EFFORTS TO UNIFY WITH GERMANY WERE REBUFFED BY THE BERLIN GOVERNMENT EAST PRUSSIA'S LEADERSHIP DOMINATED BY ETHNIC GERMAN REFUGEES FROM CENTRAL ASIA AND SIBERIA HAS REJECTED INTERNATIONAL MEDIATION OF THE DISPUTE ONE OF THE THORNIEST PROBLEMS FOR MILITARY STRATEGISTS WILL BE HOW TO QUASH LOCAL CONFLICTS SUCH AS A LANDGRABBING EAST PRUSSIA WITHOUT SETTING OFF A CHAIN REACTION OF OTHER DISPUTES SOME EASTERN EUROPEAN COUNTRIES WILL ALMOST CERTAINLY WELD THEMSELVES CULTURALLY AND ECONOMICALLY TO THE WEST BEFORE THE END OF THE DECADE GIVING THEM A MEASURE OF SECURITY BUT EXTENDING FORMAL MILITARY GUARANTEES TO THE REGION WILL BE PROBLEMATIC PARTICULARLY IF RUSSIA VEERS AWAY FROM DEMOCRACY IN SUCH A CASE WESTERN INTERVENTION IN THE REGION MIGHT ENCOURAGE AN AUTHORITARIAN BACKLASH INSIDE RUSSIA WESTERN EUROPEANS ARE ALSO NOT EAGER TO EXTEND THE NUCLEAR UMBRELLA THAT USUALLY GOES WITH MEMBERSHIP IN NATO JUST TRYING TO SORT OUT THE NUCLEAR QUESTION AMONG THEMSELVES WILL BE TOUGH ENOUGH MOST EXPERTS PREDICT BRITAIN AND FRANCE WILL RETAIN INDEPENDENT NUCLEAR ARSENALS BUT THE CHANCES OF THIS DEVELOPING INTO A UNIFIED EUROPEAN NUCLEAR FORCE ARE SLIM EUROPE AND CERTAINLY THE GERMANS WILL CONTINUE TO RELY ON THE US FOR A NUCLEAR GUARANTEE PREDICTS GEBHARD SCHWEIGLER A SENIOR RESEARCHER AT GERMANY'S SCIENCE AND POLITICS FOUNDATION A LEADING THINK TANK MR SCHWEIGLER SAYS ONE REASON HE EXPECTS NATO TO ENDURE AS AN INSTITUTION IS THAT IT SYMBOLIZES THIS ULTIMATE COMMITMENT FEW NATIONS FEEL THE IMPACT OF EUROPE'S CHANGING SECURITY FRAMEWORK MORE THAN GERMANY THE FRONT LINE DURING THE COLD WAR GERMANY IS WATCHING FOREIGN TROOPS DEPART WITH MIXED EMOTIONS THE COUNTRY IS EAGER TO REGAIN FULL SOVEREIGNTY BUT THIS MEANS REWRITING RULES THAT GOVERNED THE REGION FOR MORE THAN FOUR DECADES AND SOME THINGS WILL NEVER BE THE SAME GERMANY'S PREDICAMENT POINTS UP ONE OF THE MAIN TRENDS IN EUROPEAN DEFENSE ONCE BOUND BY A SINGLE ALLCONSUMING FEAR A SOVIET INVASION THE ALLIANCE NOW SEES DANGERS EVERYWHERE BUT NOBODY VIEWS THEM QUITE THE SAME WAY SPAIN FOR EXAMPLE IS FAR LESS CONCERNED ABOUT TURBULENCE IN EASTERN EUROPE THAN IS GERMANY AT THE SAME TIME SOUTHERN EUROPEANS ARE MORE FOCUSED ON THE THREAT FROM NORTH AFRICA AND THE MIDEAST FEB 3 2003 TURKISH OFFICIALS GATHERED IN ANKARA'S GLASSANDSTEEL PALACE OF DEMOCRACY YESTERDAY TO TOAST THEIR FUTURE AS THE 19TH MEMBER OF THE EUROPEAN COMMUNITY ENTRY INTO THE EC MARKS A HIGH POINT FOR A COUNTRY THAT HAS EMERGED AS A KEY TO EUROPEAN DEFENSE AND PROSPERITY TURKEY RECENTLY SURPASSED IRELAND IN PERCAPITA INCOME AND THE COUNTRY HAS BECOME A MODEL FOR MODERATE MIDDLE EASTERN GOVERNMENTS SEEKING TO MODERNIZE AND BROADEN LINKS WITH WESTERN EUROPE NOT ALL THE SCENARIOS ARE GLOOMY IN FACT SOME OF THE DOOMSDAY PREDICTIONS ARE NO DOUBT CONCOCTED BY THOSE TRYING TO RALLY SUPPORT FOR NATO OR A STRONG EUROPEAN ALTERNATIVE I BELIEVE WE'LL MUDDLE THROUGH SLOWLY PROGRESSING TOWARD A SYSTEM FOR EUROPEAN SECURITY SAYS DOMINIQUE MOISI AN ANALYST AT FRANCE'S INSTITUTE OF INTERNATIONAL RELATIONS MR MOISI SAYS THAT EVEN WITHOUT A STRONG NATO STRUCTURE OR A UNIFIED EUROPEAN ARMY EUROPE WILL CONTINUE TO CONTRIBUTE TO UNITED NATIONSSPONSORED PEACEMAKING AND PEACEKEEPING MISSIONS WHILE EDGING TOWARD ITS OWN INTEGRATED MILITARY STRUCTURES MEANWHILE THE RAPID DECLINE IN THE NUMBER OF TROOPS IN EUROPE MAY BE A BLESSING NATO IS EXPECTED TO SHED AT LEAST 25 OF ITS COMBINED MANPOWER IN COMING YEARS WHILE THE FORMER WARSAW PACT FORCES ARE BEING CUT IN HALF WHEN IT'S ALL OVER WESTERN EUROPE'S ARMIES WILL BE SMALLER BUT THEY WILL BE MORE FLEXIBLE AND BETTER TRAINED WITH MOST COUNTRIES EXPECTED TO ELIMINATE CONSCRIPTION IN FAVOR OF VOLUNTEER FORCES AND WHILE MOST WESTERN EUROPEANS ARE BUILDING DOWN TURKEY IS CONTINUING A MASSIVE BUILDUP TURKEY NOW SPENDS ABOUT 4 OF ITS INFLATIONADJUSTED GROSS DOMESTIC PRODUCT ON DEFENSE TURKEY IS PROBABLY THE BIGGEST INVESTOR IN MILITARY POWER ON THE WHOLE PLANET AT THE MOMENT SAYS NICOLAS PROTONOTARIOS A DEFENSE ECONOMIST AT LONDON'S INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES THEY'RE NOT JUST BUYING WEAPONS THEY'RE BUYING WHOLE WEAPONS INDUSTRIES MR AEPPEL IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BONN BUREAU 9302030195 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE INTO ITS OWN A CRISIS IN AFRICA GIVES EUROPE THE CHANCE TO SHOW HOW IT HAS COME OF AGE BY MARK M NELSON BRUSSELS THIS IS A TEST A TRIAL BY FIRE THE FRENCH FOREIGN MINISTER DECLARES HER WORDS BROADCAST IN TWO DOZEN LANGUAGES OVER THE EURONEWS NETWORK IF WE FAIL OUR PEOPLE AND NOT JUST THE PEOPLE OF AFRICA AND THE MIDDLE EAST WILL PAY A HEAVY PRICE IT IS FEB 3 2003 AND AFRICA IS ON THE BRINK OF WAR AND CATASTROPHE THE EUROPEAN UNION MUST DECIDE WHETHER TO TURN ITS BACK OR ORDER ITS JOINT MILITARY FORCE INTO ETHIOPIA TO STOP THAT COUNTRY'S DICTATOR FROM DIVERTING NILE WATERS AWAY FROM SUDAN AND EGYPT THE MOTION TO INTERVENE MEETS WITH RESOUNDING APPROVAL OF THE UNION'S 23 MEMBERS ALL 19 THAT BELONG TO ITS MILITARY WING VOTE YES WITH THE POLITICAL BACKING OF THE UNITED NATIONS AND SEVERAL OTHER COUNTRIES THE EU RESOLVES TO USE WHATEVER MEANS NECESSARY INCLUDING THE DEPLOYMENT OF GROUND TROOPS SUCH A MOMENTOUS DECISION IS CLEAR EVIDENCE THAT HERE IN 2003 EUROPE'S DREAM OF A STRONG FEDERATION IS FINALLY BECOMING REAL OF COURSE INTERVENTION IN AFRICA WON'T BE EASY LET US IMAGINE THAT AS THE CRISIS UNFOLDS IT BECOMES CLEAR THAT EUROPE WILL BE ALONE IN TAKING UP ARMS THE UN STILL HAS NO OFFENSIVE FORCE OF ITS OWN JAPAN IS DISINCLINED TO GET INVOLVED AND BECAUSE OF CONTINUED ECONOMIC PROBLEMS AT HOME THE AMERICANS TELL EU LEADERS THAT WHILE THEY WILL SUPPORT THE EFFORT POLITICALLY THEY WON'T PARTICIPATE MILITARILY BUT EASY OR NOT IT IS SIGNIFICANT THAT SUCH CONCERTED ACTION ON THE PART OF A 21STCENTURY EUROPE HAS BECOME POSSIBLE FOREIGNPOLICY AND DEFENSE ARRANGEMENTS WORKED OUT DURING HIGHLY CONTENTIOUS TREATY REVISIONS IN 1996 AND 2002 HAVE GIVEN THE EU REAL MIGHT IN THE FORM OF AN ARMY COMMAND STRUCTURE AND A POLITICAL DECISIONMAKING SYSTEM BOTH HAVE SERVED TO END THE CRIPPLING STALEMATES AND MINORITY RULE OF THE PAST ALTHOUGH THE GHOST OF THE DISPUTERIVEN EUROPEAN COMMUNITY STILL LINGERS A RETURN TO THAT EARLIER ENTITY'S WEAK AND DIVISIVE POLITICS IS NO LONGER AN OPTION EUROPEANS AFTER MORE THAN A DECADE OF CONCENTRATING ON THEIR OWN PROBLEMS HAVE SUDDENLY BEGUN TO TURN THEIR ATTENTION TO THE TROUBLED AND NEEDY WORLD AROUND THEM AND WHAT THEY HAVE SEEN HAS CONVINCED THEM THAT THE MOST PRESSING PROBLEMS ARE ONES THAT INDEPENDENT NATIONSTATES SHAPED TO A 19THCENTURY MODEL ARE ILLEQUIPPED TO HANDLE THE STORY OF THE 21ST CENTURY WILL BE ABOUT A DYING EARTH AND DWINDLING RESOURCES THE EU'S EXECUTIVE PRESIDENT ACKNOWLEDGED IN A RECENT SPEECH OUR ONLY HOPE LIES IN WORKING TOGETHER THE PRESSURE TO DEVISE A MORE STREAMLINED ARRANGEMENT WAS PARTLY INTERNAL ARISING FROM TWO SUCCESSIVE WAVES OF EXPANSION THE ADDITION OF SWEDEN FINLAND NORWAY AND AUSTRIA IN 1995 LEFT THE OLD EC CUMBERSOME AND HARD TO MANAGE WITH A 700MEMBER PARLIAMENT A 16MEMBER COMMISSION AND A COUNCIL OF MINISTERS THAT RARELY AGREED ON ANYTHING WHEN POLAND THE CZECH REPUBLIC HUNGARY MALTA CYPRUS LIECHTENSTEIN AND SWITZERLAND ENTERED IN 2002 THE ENLARGEMENT WAS COUPLED WITH AN EXTENSIVE REORGANIZATION THAT RESULTED IN THE EUROPEAN UNION HOWEVER OUTSIDE EVENTS HAVE PLAYED A FAR GREATER ROLE IN COMPELLING EUROPEANS TO GET OVER THEIR TRADITIONAL GRIDLOCK DURING THE PAST DECADE ENVIRONMENTAL PROBLEMS HAVE GROWN TOO SEVERE TO IGNORE THE OZONE LAYER HAS DISSIPATED WITH FRIGHTENING SPEED AND NUCLEAR WASTE FROM DISCARDED WEAPONS AND SHUTTERED GENERATING PLANTS IS NOW TRADED AMONG OUTLAW NATIONS A GLOBAL SHORTAGE OF SUCH RESOURCES AS WOOD AND WATER THREATENS MANY REGIONS WITH ECONOMIC DISASTER AND SUCH CIRCUMSTANCES HAVE LED IN TURN TO RECURRENT CRISES LIKE THE ONE IN AFRICA THE PROBLEMS ALONG THE NILE BEGAN TAKING SHAPE MORE THAN A YEAR AGO WHEN THE ETHIOPIAN LEADER RALLIED HIS PEOPLE WITH PROMISES OF ECONOMIC RECOVERY BASED ON RECAPTURING HIS COUNTRY'S SQUANDERED WATER AIDED BY ALLIES IN SYRIA AND IRAQ HE LAID PLANS FOR A VAST IRRIGATION AND HYDROELECTRIC PROJECT ON THE BLUE NILE EVEN AS THE OBJECTIONS OF EGYPT AND SUDAN WERE BEING DISCUSSED ETHIOPIA BLASTED THROUGH A SERIES OF GORGES AND CREATED VIRTUALLY OVERNIGHT A HUGE ARTIFICIAL LAKE WITHIN ITS BORDERS THE REROUTING OF THE RIVER WREAKED HAVOC IN EGYPT AND BEYOND BECAUSE MORE THAN 85 OF THE WATER THAT FLOWS INTO THE EGYPTIAN END OF THE NILE COMES FROM THE BLUE NILE THE ACTION AMOUNTED TO CUTTING EGYPT'S MAIN ARTERY A REPORT BY THE EUROPEAN ENVIRONMENTAL AGENCY ESTIMATED THAT IN THE FIRST YEAR ALONE THE DIVERSION COULD SPELL DEATH BY STARVATION AND DISEASE FOR AS MANY AS THREE MILLION EGYPTIANS THE AFRICAN DROUGHT THAT BEGAN IN 1999 HAD ALREADY CAUSED HISTORICALLY LOW WATERS IN EAST AFRICA AND THE MIDDLE EAST AND AS A NEW WAVE OF REFUGEES SPREAD ACROSS THE HEMISPHERE THE OVERWHELMING MAJORITY HAD BUT ONE DESTINATION EUROPE SMALL BOATS PACKED WITH HUNGRY DEHYDRATED AND DESPERATE PEOPLE ARRIVED DAILY IN GREECE ITALY AND EVEN SPAIN THE EU'S JOINT IMMIGRATION POLICY WHICH REQUIRES ALL MEMBERS TO SHARE THE COSTS AND BURDENS OF DEALING WITH SUCH REFUGEES WAS WIDELY CRITICIZED FEARFUL OF ANOTHER BACKLASH AGAINST EUROPEAN INTEGRATION THE EU'S EXECUTIVE PRESIDENT AND FOREIGNAFFAIRS EXECUTIVE ASKED THEIR ALLIES FOR SUPPORT THE OTHER SIX PERMANENT MEMBERS OF THE UN SECURITY COUNCIL RUSSIA CHINA BRAZIL INDIA THE US AND JAPAN BACKED THE EU WITH A RESOLUTION CALLING FOR IMMEDIATE RESTORATION OF THE NATURAL FLOW OF THE NILE MEANWHILE THE EXTERNALAFFAIRS SECRETARY OF THE FIVEPERSON UNION EXECUTIVE THE EC COMMISSION IN ITS NEW INCARNATION TRAVELED TO EUROPEAN CAPITALS TO WIN BROAD SUPPORT FOR THE PROPOSED INTERVENTION A BRUSSELSBASED FOREIGNPOLICY DEPARTMENT OF SOME 4000 BUREAUCRATS WORKED FOR THREE MONTHS TO HELP FORMULATE THE EU'S RESPONSE TO THE CRISIS NATIONAL FOREIGN MINISTRIES WERE CONSULTED AS WAS THE FOREIGNPOLICY COMMITTEE OF THE EUROPEAN PARLIAMENT NOW THE SECURITY COUNCIL IS EXPECTED TO SUPPORT THE USE OF FORCE IF NECESSARY THE UN IS ALSO ORGANIZING A MULTINATIONAL CORPS OF CIVIL ENGINEERS TO STUDY HOW TO RESTORE THE NILE TO ITS ORIGINAL COURSE ONCE THE MILITARY SITUATION PERMITS DESPITE THE RELATIVE SMOOTHNESS WITH WHICH ALL THIS HAS BEEN ACCOMPLISHED THE INTERVENTION IN ETHIOPIA WILL BE FULL OF RISKS NO ONE KNOWS FOR SURE WHETHER THE NILE CAN ACTUALLY BE REROUTED AGAIN EASILY MOREOVER THE EU'S UNTESTED MILITARY FORCES COULD ENCOUTER STIFF RESISTANCE FROM ETHIOPIA'S WELLTRAINED ARMY THOUGH THE ETHIOPIAN REGIME IS CONSIDERED VULNERABLE MILITARILY THIS WILL BE THE FIRST TIME THAT THE EUROPEANS HAVE ORGANIZED OFFENSIVE MILITARY ACTION WITHOUT THE HELP OF ANOTHER SUPERPOWER IN A LARGER CONTEXT THE AFRICAN CRISIS HAS SHOWN THAT MILITARY MIGHT REMAINS A KEY ELEMENT OF POWER AND INFLUENCE EVEN AT A TIME WHEN NO MAJOR SUPERPOWERS ARE LINED UP AGAINST ONE ANOTHER THOUGH THE EU HAS SUCCEEDED IN KEEPING THE NORTH ATLANTIC TREATY ORGANIZATION ALIVE STRUGGLING WITH AN OFTEN UNINTERESTED US TO DO SO IT HAS HAD TO WORK TO ORGANIZE ITS OWN SECURITY SYSTEM AND TO SPEND MORE HEAVILY FOR SECURITY MATTERS THE CRISIS HAS ALSO HIGHLIGHTED THE COST OF THE EU'S STRAINED RELATIONS WITH JAPAN AND THE US SINCE THE COLLAPSE OF THE MULTILATERAL TRADING SYSTEM IN 1995 THE US AND EUROPE NOW INTERACT MAINLY THROUGH TRADE WARS AND ECONOMIC DISPUTES IN MANY WAYS THESE TENSIONS ARE A RESULT OF HOW EUROPE'S WORLD PARTNERS AND COMPETITORS HAVE MISJUDGED ITS DETERMINATION TO SEIZE ITS OWN DESTINY AND DEVELOP ITS OWN VOICE IN GLOBAL MATTERS FOR EXAMPLE A FEW YEARS AGO THE US AND JAPAN DISTRACTED BY THE POLITICAL CONTROVERSY SURROUNDING THE ISSUE WERE CAUGHT OFF GUARD WHEN SEVERAL OF THE EU NATIONS TRANSFORMED INTERNATIONAL MONETARY RELATIONS BY CREATING A COMMON CURRENCY WASHINGTON HAS ASKED FOR TALKS ON GLOBAL MONETARY ARRANGEMENTS BUT NEITHER JAPAN NOR THE EU HAVE EXPRESSED MUCH INTEREST THUS THE BATTLE THAT LIES AHEAD FOR THE EU FAR BEYOND WHATEVER HAPPENS IN ETHIOPIA OVER THE COMING WEEKS WILL BE TO FIND WAYS OF EXTENDING TO THE BROADER GLOBAL COMMUNITY SOME OF THE GAINS THAT EUROPEANS HAVE WON FOR THEMSELVES IN THE END THE UN THE WORLD TRADE ORGANIZATION AND OTHER MULTILATERAL GROUPS MAY NEED THE KIND OF ELECTRICAL JOLTS THAT SHOCKED THE EUROPEANS OUT OF THEIR SMALLMINDEDNESS AS THE TELEVISION CREWS RUSH TO GATHER FOOTAGE OF THE MILITARY PREPARATIONS EUROPEAN COMMENTATORS ARE LIKELY TO REFLECT THE SENSE OF PRIDE AND ACCOMPLISHMENT THAT MANY THROUGHOUT THE EU FEEL AT THIS MOMENT BUT THE FACT REMAINS THAT EVEN A BETTERORGANIZED UNION REMAINS A SMALL AND VULNERABLE GROUP FACING A SET OF CHALLENGES FAR LARGER THAN ANY SINGLE CONTINENT MR NELSON ON LEAVE FROM THE WALL STREET JOURNAL IS A SENIOR ASSOCIATE AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE 9302030194 930203 YOUR MONEY MATTERS THE PARTY ISN'T OVER JUST YET FOR SHARES OF SMALL COMPANIES STOCK PICKERS SAY BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL SMALL IS STILL BEAUTIFUL DESPITE LAST WEEK'S MILD SETBACK THE SMALLSTOCK BANDWAGON IS ROLLING AGAIN AND WILL PROVIDE HIGHER RETURNS IN COMING MONTHS THAN BIG COMPANIES ACCORDING TO TWO VETERAN STOCKPICKERS WITH GLITTERING PERFORMANCE RECORDS THIS ADVICE COMES FROM JAMES COLLINS A 57YEAROLD MORAGA CALIFBASED MONEY MANAGER AND EDITOR OF OTC INSIGHT A MONTHLY NEWSLETTER AND JAMES D OBERWEIS 46 THE AURORA ILLBASED EDITOR OF THE OBERWEIS REPORT AND PRESIDENT OF OBERWEIS EMERGING GROWTH FUND INVESTORS WHO FOLLOWED THE ADVICE OF EITHER MR COLLINS OR MR OBERWEIS MORE THAN TRIPLED THE MARKET'S PERFORMANCE DURING THE LAST FIVE YEARS ACCORDING TO CALCULATIONS BY HULBERT FINANCIAL DIGEST WHICH KEEPS TABS ON INVESTMENT NEWSLETTERS BOTH MEN ALSO SURPASSED THE MARKET OVER THE PAST YEAR NOT MANY NEWSLETTER WRITERS OR MONEY MANAGERS CAN MAKE THAT BOAST ONLY 14 NEWSLETTERS OR 16 OF THE 88 NEWSLETTERS MONITORED BY HULBERT OVER THE PAST FIVE YEARS WERE ABLE TO BEAT THE MARKET IN BOTH THE FIVEYEAR AND ONEYEAR PERIODS SAYS MARK HULBERT PUBLISHER OF THE ALEXANDRIA VA NEWSLETTER IN MR HULBERT'S COMPARISON THE MARKET WAS MEASURED BY THE WILSHIRE 5000 VALUEWEIGHTED TOTAL RETURN EQUITY INDEX TOPPING THE NEWSLETTER RANKINGS FOR THE PAST FIVE YEARS IS MR COLLINS OF OTC INSIGHT MR COLLINS ALSO IS CHAIRMAN OF INSIGHT CAPITAL RESEARCH & MANAGEMENT INC WHICH MANAGES ABOUT 120 MILLION MAINLY FOR INDIVIDUALS THE SMALLSTOCK PARTY CERTAINLY IS NOT OVER MR COLLINS CONTENDS SMALL STOCKS WILL PRODUCE MUCH HIGHER EARNINGS AND SALES GROWTH THAN THE NATION'S BESTKNOWN COMPANIES AS THE ECONOMY EXPANDS MR COLLINS PREDICTS HE CAUTIONS THOUGH THAT THE RIDE FOR INVESTORS CAN BE BUMPY THE NASDAQ MARKET IS ONE OF FEAST OR FAMINE AND IT'S VERY HARD TO PREDICT WHEN THE FEASTS ARE GOING TO OCCUR MR COLLINS SAYS SO YOU NEED TO STAY INVESTED FOR AT LEAST FOUR YEARS TO PRODUCE REALLY SUPERIOR RETURNS MR OBERWEIS SAYS HE BELIEVES WE ARE JUST BEGINNING THE THIRD YEAR OF WHAT WILL BE A FIVE TO 10YEAR CYCLE OF SMALL STOCKS OUTPERFORMING LARGE STOCKS AS EVIDENCE THAT HISTORY IS STRONGLY ON THE SIDE OF SMALL STOCKS HE POINTS TO AN ARTICLE ON THE FRONT PAGE OF HIS LATEST NEWSLETTER BY LAURENCE B SIEGEL A MANAGING DIRECTOR OF IBBOTSON ASSOCIATES INC THE ARTICLE NOTES THAT AT NO TIME SINCE 1960 HAS THERE BEEN AN INSTANCE WHEN SMALL STOCKS OUTPERFORMED LARGE STOCKS FOR TWO CONSECUTIVE YEARS AND THEN FAILED TO OUTPERFORM BIG STOCKS IN THE THIRD YEAR MR OBERWEIS EMPHASIZES THAT HE ISN'T A MARKETTIMER BUT RATHER FOCUSES ON INDIVIDUAL STOCK SELECTION I DON'T THINK ANYBODY CAN REALLY PREDICT WHEN THE MARKET WILL GO UP OR DOWN HE SAYS WHAT STOCKS DO MR COLLINS AND MR OBERWEIS LIKE NOW AMONG THOSE FAVORED BY MR COLLINS ARE CISCO SYSTEMS WHICH CLOSED YESTERDAY AT 92 5/8 MR COLLINS THINKS IT COULD HIT 120 WITHIN A YEAR MR COLLINS ALSO STRONGLY RECOMMENDS ACCLAIM ENTERTAINMENT SYNOPTICS COMMUNICATIONS CERNER CORP ADAPTEC INC STANDARD MICROSYSTEMS GRANCARE INC INFORMIX CORP ELECTRONIC ARTS AND LATTICE SEMICONDUCTORS AMONG OTHERS HE IS CONSIDERING ADDING INTEL TO HIS LIST AND HE ALSO LIKES SEVERAL FINANCIAL STOCKS INCLUDING PREMIER BANCORP MR COLLINS DOESN'T HESITATE TO DUMP A STOCK IN A HURRY IF THE COMPANY REPORTS DISAPPOINTING EARNINGS FOR EXAMPLE HE RECENTLY SOLD EXIDE ELECTRONICS A STOCK HE FEATURED IN HIS JANUARY NEWSLETTER BECAUSE THE COMPANY MISSED HIS OPERATING EARNINGS ESTIMATE AS WELL AS CONSENSUS ESTIMATES THAT'S DOUBLE TROUBLE AND WHEN WE SEE THAT WE JUST GO HE SAYS ANYONE WITH LESS THAN 25000 TO INVEST PROBABLY SHOULD TURN TO MUTUAL FUNDS RATHER THAN PICKING INDIVIDUAL STOCKS MR COLLINS SAYS TO SUCCEED IN THE SMALLSTOCK BUSINESS INVESTORS NEED TO DIVERSIFY BUT PEOPLE WHO TRY TO DIVERSIFY WITH SMALL AMOUNTS WIND UP PAYING TOO MUCH IN COMMISSIONS MR COLLINS MANAGES A MUTUAL FUND DOMINION INSIGHT GROWTH FUND THAT OPENED ITS DOORS LATE LAST YEAR AND NOW HAS ABOUT 6 MILLION UNDER MANAGEMENT THE FUND HAS AN INITIAL MINIMUM INVESTMENT OF 5000 AND A 35 FRONTEND LOAD OR SALES CHARGE MR OBERWEIS'S EMERGING GROWTH FUND IS A NOLOAD MUTUAL FUND STARTED IN 1987 THAT HAS MORE THAN 60 MILLION IN ASSETS THE FUND PRODUCED A TOTAL RETURN LAST YEAR OF NEARLY 14 FOLLOWING AN EXPLOSIVE 87 RETURN THE YEAR BEFORE MR OBERWEIS ALSO MANAGES ABOUT 20 MILLION FOR CLIENTS OF ALPHA/SOURCE THE MONEY MANAGEMENT ARM OF HAMILTON INVESTMENTS IN CHICAGO THE STOCKS MR OBERWEIS CURRENTLY RECOMMENDS MOST STRONGLY INCLUDE CHECKERS DRIVEIN RESTAURANTS DATA RACE INC GERRITY OIL & GAS IDB COMMUNICATIONS AND MEDICAL ACTION INDUSTRIES THE LATEST ADDITIONS TO HIS MODEL PORTFOLIO OF 50 ISSUES ARE FUTURE HEALTHCARE INC PYXIS CORP STRATACOM INC AND SCI SYSTEMS INC'S 5625 CONVERTIBLE DEBENTURES MR OBERWEIS STRONGLY RECOMMENDS THAT INDIVIDUALS NOT TRY TO RIFLESHOOT THE MARKET AND PICK A FEW POTENTIAL WINNERS FROM THE SMALLSTOCK FIELD INSTEAD HE SAYS INDIVIDUALS SHOULD OWN A MINIMUM OF 15 TO 20 DIFFERENT STOCKS IN ORDER TO ACHIEVE PROPER DIVERSIFICATION ANYONE INVESTING LESS THAN 150000 OR SO IN THIS SECTOR PROBABLY SHOULD HEAD FOR A MUTUAL FUND HE SAYS HIS FUND NOW INVESTS IN ABOUT 120 DIFFERENT COMPANIES NO INDIVIDUAL ISSUE ACCOUNTS FOR MORE THAN 4 OF THE FUND'S PORTFOLIO THE MINIMUM INVESTMENT FOR THE FUND IS 2000 MORNINGSTAR MUTUAL FUNDS HAS AWARDED THE OBERWEIS FUND A FOURSTAR RATING ITS SECOND HIGHEST DON PHILLIPS MORNINGSTAR'S PUBLISHER SAYS THE FUND HAS BEEN CONSIDERABLY MORE VOLATILE THAN MOST STOCK FUNDS BUT ITS RETURNS HAVE COMPENSATED INVESTORS FOR THAT HIGHER RISK HE SAYS MR OBERWEIS HASN'T ALWAYS BEEN SO SUCCESSFUL LATE IN 1988 A SECURITIES FIRM THAT HE FOUNDED OBERWEIS SECURITIES SUSPENDED TRADING FOR LACK OF CAPITAL AND LATER CLOSED HERE ARE THE 12 OTHER NEWSLETTERS THAT HULBERT FINANCIAL DIGEST SAYS MANAGED TO BEAT THE WILSHIRE INDEX OVER BOTH THE PAST ONE AND FIVE YEARS MPT REVIEW VALUE LINE OTC SPECIAL SITUATIONS SERVICE FIDELITY MONITOR NEW ISSUES VALUE LINE CONVERTIBLES INVESTMENT QUALITY TRENDS VALUE LINE INVESTMENT SURVEY THE TURNAROUND LETTER THE PRUDENT SPECULATOR THE CLEAN YIELD THE INSIDERS AND BETTER INVESTING THE PRUDENT SPECULATOR WAS ONE OF THE TOPPERFORMING INVESTMENT NEWSLETTERS OF 1992 ACCORDING TO HULBERT FINANCIAL DIGEST THE NEWSLETTER'S NAME WAS GIVEN INCORRECTLY IN A TABLE ACCOMPANYING YESTERDAY'S YOUR MONEY MATTERS COLUMN 9302030193 930203 MARKETING BRIEF NOTED NEWSPAPERS NIHON KEIZAI SHIMBUN JAPAN'S LEADING FINANCIAL DAILY NAMED VICE PRESIDENT TAKUHIKO TSURUTA TO BE PRESIDENT AS PART OF A MANAGEMENT REJUVENATION PROGRAM MR TSURUTA 65 WILL SUCCEED AKIRA ARAI WHO IS TO BECOME CHAIRMAN WITH THE RIGHT OF REPRESENTATION THE CHANGE WILL OCCUR AFTER FORMAL APPROVAL AT A BOARD MEETING MARCH 24 THE RESHUFFLE CAME AS THE COMPANY PREPARES TO POST A SHARP DROP IN 1992 SALES AND PROFIT 9302030192 930203 WHO'S NEWS KMART CORP KMART CORP TROY MICH FRANK G FELICELLA 46YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER OF THE RETAILING COMPANY'S BUILDERS SQUARE INC UNIT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THE SUBSIDIARY HE SUCCEEDS GLEN R MIELKE WHO RETIRED 9302030191 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE IF THE SHOE FITS IN THE FUTURE WE MAY ALL BE FASHIONABLE BY LISA BANNON MILAN AFTER THE CRUSHEDLEATHER MINISKIRTS OF THE '60S THE HIPHUGGING BELLBOTTOMS OF THE '70S AND THE JUMBOSHOULDERED POWER SUITS OF THE '80S WHAT STRANGE CONFIGURATIONS WILL PEOPLE BE WEARING 10 YEARS FROM NOW FROM EUROPE'S FASHION ARBITERS COMES THIS ANSWER WHETHER IT'S A SILVER SPACESUIT OR A STONEWASHED EVENING GOWN IT WILL PROBABLY BE A MATTER OF PERSONAL TASTE RATHER THAN ONE OF ADHERING TO A FASHION LINE STYLE FORECASTERS CONTEND THAT WE MAY BE WITNESSING THE DECLINE OF THE FASHION EMPIRE THE 50YEAR REIGN OF STYLE DICTATORS IN PARIS MILAN AND NEW YORK WHO CALLED THE SHOTS THE THIRD MILLENIUM IS LIKELY TO BE AN AGE OF FASHION ANARCHY AN ANYTHINGGOES LIMITLESS ARRAY OF FASHION CHOICES WHERE TRENDS IF THEY EXIST AT ALL WILL BE SET BY THE PEOPLE WHO WILL ACTUALLY WEAR THE STUFF RATHER THAN BY FUSSY DESIGNERS IN CLOISTERED ATELIERS TODAY'S ARBITERS OF TASTE CONCEDE THAT THEY THEMSELVES MAY BE OUT OF FASHION BY THE YEAR 2003 I HAVE A LOT OF DOUBTS REGARDING A TRUE EVOLUTION IN FASHION SAYS DESIGNER GIORGIO ARMANI I SEE DIFFICULT TIMES AHEAD FOR THE DESIGNERS 10 YEARS FROM NOW BECAUSE IN THE LAST TWO DECADES THEY'VE BEEN ALLOWED TO GET AWAY WITH A GREAT DEAL PERHAPS TOO MUCH MR ARMANI'S PREDICTION THOUGH HAS MORE TO DO WITH CONSUMERS THAN DESIGNERS NO ONE WANTS TO BE TOLD WHAT TO WEAR ANYMORE FOR YEARS GLAMOUR DICTATORS WOULD SAY SHORT AND WOMEN WOULD HIKE UP THEIR SKIRTS FEW WOMEN WOULD SUFFER THE HUMILIATION OF BEING ON THE WRONG SIDE OF A DESIGNERDICTATED HEMLINE FEW SELFRESPECTING MEN WOULD WEAR A GREEN SUIT FOR FEAR OF PERMANENT OSTRACISM FASHION IS A PRODUCT OF FASCISM SAYS FRANCO MOSCHINO A RENEGADE DESIGNER WHO HAS BUILT HIS CAREER ON LAMPOONING WHAT HE CALLS THE EXCESSES OF THE FASHION SYSTEM I REALLY THINK FASHION WILL NOT BE IMPORTANT IN THE FUTURE WE'LL HAVE CLOTHES BUT WE WON'T HAVE FASHION THIS FUTURE IN FACT MAY HAVE ALREADY ARRIVED AS TRENDS FROM EVERY ERA HAVE BEEN REHASHED OVER THE PAST FEW YEARS THE DEFINITION OF WHAT IS STYLISTICALLY ACCEPTABLE HAS BECOME NEARLY LIMITLESS THE DESIGNERS CAN'T DICTATE TO PEOPLE ANYMORE SAYS GLYNIS COSTIN THE MILAN BUREAU CHIEF OF WOMEN'S WEAR DAILY CONSUMERS HAVE GOTTEN TOO SOPHISTICATED FOR THAT LOOK AT LAST SEASON'S ATTEMPT AT A '70S REVIVAL PLATFORM SHOES BELLBOTTOMS AND PEACE SIGNS INVADED THE RUNWAYS IN PARIS AND MILAN AS DESIGNERS TRIED TO REVIVE ENTHUSIASM FOR THE DISCO DECADE THE ATTEMPT FLOPPED MISERABLY AT THE SAME TIME THE GAP WITH ITS ANTIFASHION BASIC JEANS AND TSHIRTS CONQUERED THE US IN A LASTDITCH ATTEMPT TO RECAPTURE WANING INTEREST DESIGNERS ARE NOW OFFERING CONSUMERS THE GRUNGE LOOK AN ODD THRIFTSTORE BLEND OF OLD SWEATERS AND WRINKLED FLANNELS THAT IS DECIDEDLY ANTILUXURY FASHION PUNDITS ATTRIBUTE THE NEW FASHION FREEDOM TO A MOVE TOWARD INDIVIDUALISM AFTER THE CIVILRIGHTS MOVEMENT THE FEMINIST MOVEMENT AND THE ENTRANCE OF WOMEN INTO THE WORK FORCE PEOPLE HAVE WON THE RIGHT TO BE ANYTHING THEY CHOOSE A WOMAN CAN BE SINGLE MARRIED MOTHER CAREER WOMAN OR HOMEMAKER A MAN CAN CHOOSE A TRADITIONAL CAREER OR STAY AT HOME TO RAISE CHILDREN PEOPLE CAN CHOOSE TO DO ALL OR NONE OF THESE THINGS AND IT FOLLOWS THAT THEY SHOULD HAVE SIMILAR CHOICES ABOUT WHAT THEY WEAR IN ADDITION THE FASHION MAVENS SAY TECHNOLOGY IS ALLOWING US TO SPEND MORE TIME AT HOME SET IRREGULAR WORK HOURS AND ACCOMPLISH MORE IN A SINGLE DAY THE NINETOFIVE JOB IS BECOMING MORE UNUSUAL AND THE WORKADAY UNIFORM IS BECOMING OUTMODED THE REAL REVOLUTION IN FASHION IS THE ONE REALIZED IN THESE PAST FEW YEARS THAT ALLOWS FOR A MORE FREE CRITICAL AND PERSONAL ATTITUDE TOWARD OUR WARDROBE SAYS ITALIAN DESIGNER GIANFRANCO FERRE IT'S LIKE CNN SAYS MS COSTIN OF WOMEN'S WEAR DAILY FASHION HAS GONE GLOBAL AND INSTANT THE SAME PERSON CAN WEAR A 1970S LOOK IN THE MORNING A 1930S LOOK AT NIGHT ANYTHING GOES SO THE QUESTION OF WHAT WE WILL BE WEARING IN A DECADE IS ULTIMATELY UNANSWERABLE THE CONCEPT OF SHORT AND LONG SKIRTS WILL BE IRRELEVANT SAYS MR ARMANI I THINK MEN AND WOMEN IN 10 YEARS TIME WILL DRESS IN A WAY THAT IS ALWAYS MORE TIED TO THEIR WAY OF LIFE FOR EXAMPLE A PRACTICAL WAY OF DRESSING THAT IS RIGHT FOR PEOPLE WHO TRAVEL AND WHO ARE EVER MORE CONSCIOUS OF THE FACT THAT THE WORLD HAS GOTTEN SMALLER MR MOSCHINO HOPES FOR THE ULTIMATE LIBERATION IT WILL BE A MIX OF EVERYTHING HE SAYS GOOD TASTE WILL DISAPPEAR IT WILL BE A WILD MIXED MASQUERADE PROVING THAT HUMAN NATURE IS A LITTLE BIT OF EVERYTHING CHAOS MS BANNON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S MILAN BUREAU 9302030190 930203 WHO'S NEWS MEDTRONIC INC MEDTRONIC INC MINNEAPOLIS ROBERT L RYAN 49 YEARS OLD FORMERLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF UNION TEXAS PETROLEUM CORP WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE MAKER OF MEDICAL DEVICES THE POST OF FINANCIAL CHIEF HAS BEEN VACANT FOR ABOUT A YEAR 9302030189 930203 WHO'S NEWS INTERREGIONAL FINANCIAL GROUP INC INTERREGIONAL FINANCIAL GROUP INC MINNEAPOLIS SUSAN S BOREN GROUP VICE PRESIDENT OF STORES FOR THE DAYTON HUDSON DEPARTMENT STORE DIVISION OF DAYTON HUDSON CORP WAS NAMED A DIRECTOR OF THIS FINANCIAL SERVICES CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN 9302030188 930203 PEPSICO NET DECREASED 2 IN 4TH PERIOD BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID FOURTHQUARTER NET INCOME FELL 2 IN THE WAKE OF CHARGES FOR RESTRUCTURING THE COMPANY'S BEVERAGE BUSINESS AND FOR RETIREMENT BENEFITS BUT PEPSICO'S SNACK AND RESTAURANT DIVISIONS PERFORMED STRONGLY IN THE QUARTER HELPING PUSH OPERATING EARNINGS UP 20 TO THE HIGH SIDE OF ANALYSTS' ESTIMATES FOURTHQUARTER NET WAS 2656 MILLION OR 32 CENTS A SHARE COMPARED WITH 2711 MILLION OR 34 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER INCLUDED CHARGES OF 1285 MILLION MOSTLY FOR A RESTRUCTURING OF THE BEVERAGE DIVISION COVERING EMPLOYEE SEVERANCE AND RELOCATION COSTS THERE WERE ADDITIONAL EXPENSES RELATED TO MANDATORY ACCOUNTING CHANGES FOR RETIREMENT BENEFITS AND INCOME TAXES THE YEARAGO PERIOD HAD 574 MILLION IN RESTRUCTURING CHARGES EXCLUDING UNUSUAL ITEMS FROM BOTH FOURTHQUARTER PERIODS PERSHARE EARNINGS WOULD HAVE INCREASED 20 TO 49 CENTS SALES ROSE 16 TO 68 BILLION FROM 584 BILLION IN SOFT DRINKS PEPSICO'S US SALES VOLUME ROSE ABOUT 3 IN THE QUARTER AN IMPROVEMENT OVER THE FIRST NINE MONTHS BUT POOR WEATHER PRICE INCREASES TAKEN BY MAJOR BOTTLERS AND A SPATE OF NEW BEVERAGE COMPETITORS HELD PEPSICO'S FULLYEAR GROWTH ON A CASESALES BASIS TO ONLY 1 THAT LAGS THE 2 VOLUME INCREASE REPORTED LAST WEEK BY COCACOLA CO FOR 1992 COKE'S ADVANTAGE SEEMED TO STEM PARTLY FROM THE FOUNTAIN BUSINESS WHICH ENTAILS SALES OF SOFT DRINKS TO RESTAURANT COMPANIES MORE THAN PEPSI COKE HAS BENEFITED FROM THE STRENGTHENING FOODSERVICE INDUSTRY BECAUSE COKE DOMINATES SOFTDRINK SALES TO RESTAURANTS INTERNATIONALLY PEPSI'S VOLUME ROSE 4 IN THE QUARTER AND 7 FOR THE YEAR ANALYSTS EXPECT PEPSI TO BOOST ITS US SALES VOLUME MORE THIS YEAR PERHAPS TO 4 OR SO AIDED PARTLY BY EXPANDED AVAILABILITY OF NEW PRODUCTS LIKE ITS LIPTON TEA AND CRYSTAL PEPSI DRINKS MICHAEL BRANCA AN ANALYST WITH NATWEST SECURITIES EXPECTS THE CORE BEVERAGES LIKE PEPSICOLA TO RETURN TO MORE NORMAL GROWTH LEVELS THIS YEAR WITH THE NEW PRODUCTS PROVIDING A POTENTIAL KICKER IN SNACK FOODS PEPSICO'S BIGGEST EARNINGS GENERATOR INTERNATIONAL PROFITS JUMPED 55 IN THE FOURTH QUARTER LARGELY DRIVEN BY A HOST OF ACQUISITIONS STILL VOLUME ROSE ONLY 1 ABROAD IN THE QUARTER HAMPERED BY VOLUME DECLINES IN BRAZIL AND THE UNITED KINGDOM IN THE US FRITOLAY THE DOMESTIC SNACK DIVISION REPORTED A ROBUST 8 VOLUME GAIN IN THE QUARTER LED BY SALES INCREASES OF LAY'S AND RUFFLES AMONG OTHER CHIPS DAVID GOLDMAN AN OPPENHEIMER & CO ANALYST EXPECTS FRITOLAY'S VOLUME GROWTH A LEADING INDICATOR OF THE STRENGTH OF THE SNACK COMPANY'S BUSINESS TO BE A SOLID 5 NEXT YEAR HE SAID THIS YEAR'S 7 VOLUME GAIN AT FRITOLAY SPARKED PARTLY BY LOWER PRICES WILL MAKE NEXT YEAR'S COMPARISON MORE DIFFICULT THE FASTFOOD RESTAURANTS EACH SHOWED OPERATING PROFIT GAINS OF MORE THAN 20 PIZZA HUT BENEFITED FROM LOWER COSTS FOR CHEESE A MAIN INGREDIENT COST AS WELL AS SALES GENERATED FROM ITS LUNCH BUFFET SAMESTORE SALES AT PIZZA HUT AND AT PEPSICO'S KFC CHICKEN CHAIN ROSE 2 IN THE QUARTER WHILE TACO BELL'S ROSE 9 FOR THE YEAR PEPSICO REPORTED NET OF 3743 MILLION OR 46 CENTS A SHARE DOWN FROM 108 BILLION OR 135 A SHARE THE 1992 NET INCLUDES THE 1285 MILLION IN RESTRUCTURING CHARGES PLUS A CHARGE OF 3567 MILLION FOR POSTRETIREMENT BENEFITS AND AN ADDITIONAL CHARGE OF 5707 MILLION RELATED TO INCOME TAXES IN 1991 PEPSICO HAD A RESTRUCTURING CHARGE MOSTLY FOR THE DOMESTIC SNACK BUSINESS OF 1198 MILLION SALES ROSE 14 TO 2197 BILLION FROM 1929 BILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE PEPSICO COMMON WAS QUOTED AT 4175 DOWN 50 CENTS 9302030187 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE LETTER FROM SORBIA LUSATIA FEB 3 2003 BY ROGER THUROW LUSATIA ISN'T THAT THE PLACE IN THE MARX BROTHERS MOVIE I SAW LAST NIGHT WE UNDERSTAND WHAT WITH ALL THE SLOVENIAS SLOVAKIAS ARMENIAS AND HERZEGOVINAS TO YOU SORBIA LUSATIA IS PROBABLY JUST ANOTHER PRETTY NAME WELL ALLOW ME TO INTRODUCE OURSELVES WE'RE EUROPE'S NEWEST NATION HOW MANY DOES THAT MAKE NOW SEVENTY SEVENTYONE SO MUCH FOR 1992 AND EUROPEAN UNITY THAT WAS THE YEAR WE SURPASSED AFRICA AS THE MOSTFRAGMENTED CONTINENT AND WE'VE BEEN SPLITTING LIKE AN ATOM EVER SINCE SPEAKING OF ATOMS YES WE'VE GOT THE BOMB TOOK DELIVERY OF ONE FROM TARTARSTAN JUST YESTERDAY WE GOT A GREAT DEAL ON IT THE TARTARS WERE DESPERATE FOR OUR SPECIAL THERMAL SLEEPING BAGS TO GET THROUGH THE WINTER SO WE SWAPPED WELL ONE MOUSE'S PROBLEM IS ANOTHER MOUSE'S FORTUNE ANYWAY NOW YOU KNOW WE CAN BLAST YOU TO KINGDOM COME OR AT LEAST ALL THE WAY TO UZBEKISTAN SO STOP LAUGHING UNTIL TWO WEEKS AGO WE WERE PART OF GERMANY THE NEGLECTED INSIGNIFICANT SLAVICSPEAKING PART ON THE POLISH BORDER THROUGH THE YEARS THE PRUSSIANS SACHSENS NAZIS AND COMMUNISTS ROUGHED US UP BUT THE REUNIFIEDS SIMPLY IGNORED US THAT REALLY MADE US MAD IT WAS BAD ENOUGH WHEN THEY REFUSED OUR SUGGESTION TO PUT THE CAPITAL RIGHT HERE IN LUSATIA AND WENT AHEAD AND MOVED FROM BONN TO FRANKFURT SO THE CHANCELLOR AND PARLIAMENT WOULDN'T HAVE SO FAR TO GO TO PICK UP THEIR ORDERS FROM THE BUNDESBANK THE LAST STRAW CAME WHEN A FORMER SKINHEAD WAS APPOINTED INTERIOR MINISTER RIGHT THERE ON HIS OFFICE DOOR HE HUNG A SIGN SAYING FOREIGNERS OUT WE GOT THE MESSAGE WE DECIDED TO GET OUT WHILE THE GETTING WAS GOOD AND TAKE A CHUNK OF THE COUNTRY WITH US AT FIRST THE GERMANS RESISTED SURE IT WAS FINE TO PUSH FOR THE RECOGNITION OF CROATIA AND SLOVENIA AND BOSNIA WAY BACK WHEN BUT OUR DECLARATION OF INDEPENDENCE STRUCK CLOSE TO HOME INVOKING THE FADED DREAM OF 1992 GERMANY DECIDED TO DRAW A LINE IN THE INDEPENDENCE SAND AFTER ALL QUEEN DIANA HAD JUST LOWERED THE UNION JACK OVER SCOTLAND AND FRENCH PRESIDENT JACQUES DELORS WAS SAYING FAREWELL TO THE CORSICANS AND BRETONS THE BASQUES AND CATALANS HAD SPLIT FROM SPAIN THE WALLOONS FROM BELGIUM THE LOMBARDIES FROM ITALY THE POMERANIANS FROM POLAND EVEN THE BEER HALLS OF BAVARIA WERE BEGINNING TO REEK WITH TALK OF SECESSION GERMAN TROOPS WERE MASSING ON OUR BORDER WHEN SUDDENLY THE FIVE WISE MEN RESEARCHING THEIR ANNUAL MONETARY REPORT DISCOVERED THAT SINCE THE TIME OF REUNIFICATION MORE SUBSIDIES HAVE FLOWED INTO LUSATIA THAN TAXES FLOWED OUT THEY RECOMMENDED THAT GERMANY DOWNSIZE IN THE END THE GERMANS ACTUALLY PAID US TO LEAVE LIKE SO MANY GYPSIES BEING PACKED OFF TO ROMANIA IT'S A GOOD SUM OF MONEY KNOW WHAT WE'RE GOING TO DO WITH IT BUILD A BOBSLED AND LUGE RUN THAT'S RIGHT WE'RE GOING TO INVITE ALL THE EAST GERMAN COACHES BACK NO ONE EVER CRAFTED A BOBSLED LIKE AN EAST GERMAN AND DOMINATE THE OLYMPICS THE NATIONAL ANTHEM OF SORBIA LUSATIA WILL BE HEARD ROUND THE WORLD MOST PEOPLE STILL HAVEN'T HEARD OF KYRGYZSTAN BUT AFTER THE NEXT WINTER OLYMPICS SORBIA LUSATIA WILL BE A HOUSEHOLD NAME SPEAKING OF NAMES LET'S GET SOMETHING STRAIGHT YOU CAN CALL US SORBANIANS OR YOU CAN CALL US LUSATIANS BUT DON'T YOU EVER CALL US SORBS IT SOUNDS TOO MUCH LIKE SERBS AND WITH SERBIAN LEADERS AT LAST ABOUT TO GO ON TRIAL FOR WAR CRIMES WHO WANTS TO BE MISTAKEN FOR A SERB WITH DANGER LURKING ALL AROUND MOST OF THE OTHER MICE OF EUROPE SET ABOUT BUILDING ARMIES IMMEDIATELY AFTER GAINING INDEPENDENCE NOT US WE HAVE NO REASON TO FEAR OUR NEIGHBORS THEY ARE PREOCCUPIED ELSEWHERE ALL THE POLISH SOLDIERS ARE ON THEIR EASTERN FRONT KEEPING A CLOSE EYE ON THE RUSSIANS WHO ARE BUSY SLASHING OUT A GREATER RUSSIA ALL THE CZECH SOLDIERS NOW IN THE BOHEMIAN ARMY ARE MASSED ON THEIR SOUTHERN BORDER WATCHING THE MORAVIAN SEPARATISTS ALL THE GERMAN GUNS ARE AIMED AT THE ALSACE READY TO REPEL THE FRENCH FARMERS OK SO WE HAVE THE BOMB BUT NOWADAYS DOESN'T EVERYONE WHAT'S THAT YOU SAY THE EUROPEAN COMMUNITY WON'T HAVE US WELL WE WON'T HAVE THE EUROPEAN COMMUNITY THE HOMAGE FEE DEMANDED BY THE FRENCH FARMERS JUST TO JOIN THE EC WOULD USE UP ALL OUR BOBSLED MONEY AND WHO WANTS TO BE DICTATED TO BY A BUNCH OF OILSEED GROWERS ANYWAY AND THERE'S NO WAY WE'RE GOING TO LOWER OUR PICKLE STANDARDS TO THE GUTTERTASTES OF THE BRITISH AND THAT PURPLE PASSPORT REALLY OURS IS A LOVELY CHARTREUSE WITH RED POLKA DOTS IN HONOR OF OUR NATIONAL MUSIC AND THAT EUROPEAN MONETARY SYSTEM WHAT A MESS WHOEVER THOUGHT THE SWEDISH KRONA WOULD BE THE BENCHMARK CURRENCY WE DON'T WANT A BUNCH OF SCANDANAVIAN PHILOSOPHERS LOOKING OUT AT US FROM OUR MONEY LOOK WHAT HAPPENED TO STERLING IT REENTERS THE SYSTEM IN 1996 AND TWO YEARS LATER QUEEN ELIZABETH'S FACE IS REPLACED BY A HERRING TALK ABOUT AN ANNUS HORRIBILIS AND WHO WANTS TO SUBSIDIZE THAT OLDFOLKS HOME IN STRASBOURG JUST SO MAGGIE HELMUT FRANCOIS FELIPE AND GORBY CAN ROCK AWAY AND GET NOSTALGIC ABOUT THE '80S NO THANKS LET THE IRISH AND PORTUGUESE DO IT THEY'RE THE MONEYBAGS THESE DAYS SO WHERE WILL WE BELONG OUR FIRST FOREIGNPOLICY INITIATIVE WILL BE TO REVIVE THE HABSBURG EMPIRE WE'LL CALL IT THE HABSBURGIAN REUNION IT'LL BE US THE SLOVAKS THE BOHEMIANS THE MORAVIANS THE RUTHENIANS THE HUNGARIANS THE TRANSYLVANIANS THE CROATS THE SLOVENES THE TYROLEANS THE LOMBARDIES AND THE AUSTRIANS WE'LL DAM UP THE DANUBE TO RUN OUR POWER PLANTS EVERYBODY WILL BE A BUREAUCRAT WE'LL WRITE WALTZES WE'LL KEEP THE SERBS AT BAY WE'LL RETURN CIVILIZED ORDER TO EUROPE THE 19TH CENTURY WASN'T ALL BAD YOU KNOW MR THUROW IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S VIENNA BUREAU 9302030186 930203 WHO'S NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY MILAN KOFOL 42 YEARS OLD WAS NAMED VICE PRESIDENT AND TREASURER OF THIS PUBLISHER AND DIRECT MAIL MARKETER OF MAGAZINES BOOKS AND HOME ENTERTAINMENT PRODUCTS EFFECTIVE FEB 23 MR KOFOL FORMERLY VICE PRESIDENT AND TREASURER OF PHARMACEUTICAL CONCERN AMERICAN HOME PRODUCTS CORP SUCCEEDS ROSS JONES MR JONES 50 IS JOINING KNIGHTRIDDER INC A NEWSPAPER AND PUBLISHING CONCERN AS SENIOR VICE PRESIDENT 9302030185 930203 WHO'S NEWS CHAMPION INDUSTRIES INC CHAMPION INDUSTRIES INC HUNTINGTON WVA TODD L PARCHMAN 38 YEARS OLD SENIOR VICE PRESIDENT AND HEAD OF INVESTMENT BANKING AT FERRIS BAKER WATTS INC A SECURITIES FIRM BASED IN WASHINGTON DC WAS NAMED A DIRECTOR OF THIS COMMERCIAL PRINTING CONCERN AND SUPPLIER OF OFFICE PRODUCTS AND OFFICE FURNITURE THIS MOVE INCREASES THE COMPANY'S BOARD TO SEVEN MEMBERS 9302030184 930203 WHO'S NEWS UTILICORP UNITED INC UTILICORP UNITED INC KANSAS CITY MO STANLEY O IKENBERRY PRESIDENT OF THE UNIVERSITY OF ILLINOIS AT URBANA WAS NAMED A DIRECTOR OF THIS UTILITY HOLDING COMPANY GIVING THE BOARD EIGHT MEMBERS 9302030183 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE BUSINESS PLAN FOREIGN COMPETITION WILL CHANGE THE FACE OF EUROPE'S CORPORATE LANDSCAPE BY JANET GUYON THE YEAR IS 2003 THE JAPANESE HAVE PRACTICALLY WIPED OUT EUROPE'S MANUFACTURING INDUSTRIES ONE OUT OF FOUR EUROPEANS BUYS A JAPANESE CAR EUROPE'S COMPUTER AND CONSUMERELECTRONICS INDUSTRIES ARE DEAD ALSO VICTIMS OF THE JAPANESE A SHAKEOUT IS GOING ON IN THE AIRLINE INDUSTRY AS DEREGULATION HAS FORCED CROSSBORDER MERGERS TICKET PRICES ARE HALF WHAT THEY WERE 10 YEARS AGO BELGIUM'S SABENA NO LONGER EXISTS BRITISH AIRWAYS DOMINATES THE SKIES BUT ITS EXECUTIVES FRET ABOUT A US ATTACK THE BANKING INDUSTRY ALSO HAS CONSOLIDATED AND WESTERN EUROPE'S AGRICULTURE INDUSTRY HAS BEEN REPLACED BY THE THRIVING FARMS OF EASTERN EUROPE SWISS DRUG COMPANIES DOMINATE THE GLOBAL PHARMACEUTICAL INDUSTRY AND EUROPE HAS BECOME A RETIREMENT HAVEN FOR AMERICANS AND THE JAPANESE THIS IS THE CORPORATE LANDSCAPE IN EUROPE 10 YEARS HENCE AS PAINTED BY EXPERTS ACROSS A WIDE SPECTRUM THE SINGLE EUROPEAN MARKET THEY SAY WILL NOT CREATE FORTRESS EUROPE RATHER IT WILL MAKE IT EASIER FOR NONEUROPEAN COMPANIES TO INVADE AND THRIVE THE SINGLE MARKET MEANS THERE IS NO PLACE TO HIDE WITHIN EUROPE NOT ONLY FROM OTHER EUROPEAN COMPANIES BUT FROM COMPANIES COMING FROM ELSEWHERE SAYS MICHAEL HODGES A SENIOR LECTURER IN INTERNATIONAL RELATIONS AT THE LONDON SCHOOL OF ECONOMICS IT WILL BE THE END OF NATIONAL CHAMPIONS IN VIRTUALLY EVERY INDUSTRY THAT'S SIMPLY NOT SUSTAINABLE ANYMORE BUT HOW FAST AND WHETHER SUCH CHAMPIONS WILL DIE DEPENDS ON A WEB OF INTERRELATED FACTORS TECHNOLOGY AND ECONOMIES OF SCALE MAY DRIVE INDUSTRIES TO CONSOLIDATE CUT COSTS AND EXPAND MARKETS BUT THE BACKLASH OF NATIONALISM AND ETHNIC LOYALTIES WILL ALSO FORCE GOVERNMENTS TO STEM THE TIDE YOU'VE GOT GLOBALIZATION COMBINED WITH TRIBALISM AND THERE WILL ALWAYS BE TENSION BETWEEN THOSE THINGS SAYS MR HODGES GOVERNMENTS WILL BE UNDER QUITE CONSIDERABLE PRESSURE FROM FIRMS WITHIN THEIR BORDERS TO MITIGATE THE EFFECTS OF COMPETITION THERE MAY BE A LOT OF LOSERS IN SOME SECTORS AND REGIONS AND THOSE LOSERS WILL GET ON THE PHONE TO A MEMBER OF PARLIAMENT AND SCREAM PRETTY LOUD THE AUTO INDUSTRY IS ILLUSTRATIVE BY THE END OF THE DECADE EUROPEAN RESTRICTIONS ON IMPORTS OF JAPANESE VEHICLES ARE SCHEDULED TO EXPIRE BUT EUROPE'S CAR COMPANIES MOST OF WHICH HAVEN'T DEVELOPED MARKETS OUTSIDE EUROPE AND AREN'T GLOBALLY COMPETITIVE ARE ALREADY MAKING NOISE ABOUT NEEDING MORE TIME TO REACH THE LEVEL OF JAPANESE EFFICIENCY IN PRODUCTION IF EUROPE DOES OPEN ITS MARKET TO THE JAPANESE THE SIX EXISTING MAJOR PLAYERS GENERAL MOTORS CORP FORD MOTOR CO VOLKSWAGEN AG OF GERMANY FIAT SPA OF ITALY AND PSA PEUGEOTCITROEN AND RENAULT SA OF FRANCE WILL FACE A VERY DIFFERENT MARKET SAYS GAREL RHYS A SPECIALIST IN THE INDUSTRY AT THE UNIVERSITY OF CARDIFF IN WALES IMPORTS COMBINED WITH PRODUCTION BY JAPANESE PLANTS IN EUROPE COULD GIVE THE JAPANESE A 20 MARKET SHARE BY THE YEAR 2000 UP FROM 10 NOW THAT HAS TO COME FROM THE MARKET SHARE OF THE TRADITIONAL PLAYERS MR RHYS SAYS WITH NO MARKETS OUTSIDE EUROPE YOU CAN SEE THE WORRY THOSE FIRMS HAVE HE EXPECTS SOME OF THE MAJOR PLAYERS TO TEAM UP RATHER THAN DROP OUT MARCUS GRUBB AN INTERNATIONAL STRATEGIST WITH SALOMON BROTHERS IN LONDON SAYS THAT THE ONLY AUTO COMPANIES LIKELY TO SURVIVE OVER THE LONG TERM AGAINST THE JAPANESE ARE THE GERMAN AND THE US COMPANIES THE LOSERS WILL BE FIAT AND THE FRENCH COMPANIES FOR ALL COMPANIES THE TRICK TO PROSPERING IN THE COMING DECADE WILL BE TO EXPAND GLOBALLY WHILE ADAPTING TO LOCAL TASTES A GAMBIT BEING CALLED GLOCALIZATION EUROPE MAY BE BECOMING A SINGLE MARKET BUT IT ISN'T HOMOGENEOUS IN PRODUCTS STYLE OR PRICES ANALYSTS PREDICT THAT AMONG THE WINNERS IN THIS AREA WILL BE FOOD COMPANIES THAT PRODUCE BRANDED PRODUCTS SOLD WORLDWIDE AS WELL AS GLOBAL BEVERAGE COMPANIES AND DRUG MAKERS ON THIS LIST PUT SWITZERLAND'S NESTLE SA UNILEVER NV OF THE NETHERLANDS AND BRITAIN'S GRAND METROPOLITAN PLC AND GUINNESS PLC SAYS JOHN VINEY MANAGING PARTNER OF THE LONDON OFFICE OF HEIDRICK & STRUGGLES AN EXECUTIVESEARCH FIRM MR GRUBB OF SALOMON BROTHERS ADDS SWISSOWNED PHARMACEUTICAL GIANTS SANDOZ HOFFMANLA ROCHE AND CIBAGEIGY TO THE LIST OF LIKELY WINNERS OVER THE NEXT DECADE IN CONTRAST A LONG LIST OF INDUSTRIES ARE TAGGED FOR EXTINCTION ONCE THEY ARE REMOVED FROM THE PROTECTIVE ARMS OF THEIR GOVERNMENTS ANALYSTS CITE CONSUMER ELECTRONICS AS ONE PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND FRANCE'S THOMSON SA THE ANALYSTS SAY ARE LIKELY TO HAVE TROUBLE SO WILL EUROPE'S INDIGENOUS COMPUTER INDUSTRY WHICH HARDLY EXISTS ANYWAY METALS AND MATERIAL BUSINESSES IN WESTERN EUROPE WILL BE HURT BY PRODUCTION FROM EASTERN EUROPE AS WILL BASIC FOOD BUSINESSES MR GRUBB SAYS ANOTHER POTENTIAL PROBLEM FOR EUROPEAN COMPANIES IS THAT THERE STILL IS NO SINGLE EUROPEAN BUSINESS CULTURE THAT IS NO WAY OF DOING BUSINESS THAT CUTS ACROSS NATIONAL BOUNDARIES INSTEAD NATIONAL DIFFERENCES MAKE IT DIFFICULT FOR THE VARIOUS CORPORATE DIVISIONS TO WORK TOGETHER AS A COHESIVE UNIT AND THAT MAKES COMPETITION WITH JAPANESE AND AMERICAN COMPANIES ALL THE MORE PROBLEMATIC THERE IS NO COLLECTIVE VALUE STRUCTURE IN EUROPE FOR BUSINESS MR VINEY SAYS EUROPE HAS TO BUILD A BUSINESS CULTURE SO IT CAN BUILD THESE BUSINESSES AND MAKE THEM WORLDCOMPETITIVE IF NOT THEN AMERICA WILL STILL BE ABLE TO BRING INTO EUROPE AN AMERICAN BUSINESS CULTURE THAT ALLOWS IT TO DOMINATE A DIFFERENT TYPE OF CULTURE HOWEVER MAY BE A GODSEND FOR EUROPEAN BUSINESS ACCORDING TO MANUEL SOTO A MANAGING PARTNER AT ARTHUR ANDERSEN & CO IN MADRID EUROPE'S PARKS MUSEUMS MUSIC AND THEATER ARE ASSETS THAT CAN EASILY BE MARKETED TO THE WORLD'S RETIREES HE SAYS LIFE EXPECTANCY WILL CONTINUE TO INCREASE AND THERE WILL BE MORE CUSTOMERS FOR LEISURE MR SOTO SAYS WE CAN BECOME THE PLACE FOR SOPHISTICATED PLEASURE NOT ONLY FOR EUROPEANS BUT FOR OTHER CULTURES PERHAPS THE WILD CARD FOR ALL OF WESTERN EUROPEAN INDUSTRY IN THE NEXT DECADE IS EASTERN EUROPE PRACTICALLY EVERYONE PREDICTS THAT WESTERN EUROPEAN INDUSTRIES THAT ARE HIGHLY LABORINTENSIVE WILL MOVE EAST AND INEXPENSIVE RAW GOODS MADE IN THE EAST WILL HURT WESTERN EUROPEAN MANUFACTURERS IN SUCH BASIC INDUSTRIES AS STEEL MOREOVER WESTERN EUROPEAN COMPANIES THAT ARE COUNTING ON EASTERN EUROPE TO PROVIDE MARKETS IN THE NEXT DECADE MAY BE UNPLEASANTLY SURPRISED IT WILL TAKE FAR LONGER FOR THESE ECONOMIES ESPECIALLY THOSE OF THE SOVIET REPUBLICS TO FULLY DEVELOP WESTERN ECONOMISTS SAY ONLY HUNGARY THE CZECH AND SLOVAK REPUBLICS AND POSSIBLY POLAND ARE POISED TO DEVELOP MUCH SAYS ROBERT BALLANCE HEAD OF THE INDUSTRIAL STATISTICS AND SECTORAL SURVEYS BRANCH OF THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION IN VIENNA COLLECTIVELY THOSE AREN'T REALLY BIG MARKETS THE BUYING POWER ISN'T THERE YET HE SAYS YOU DON'T SEE A LOT OF PROGRESS IN THE FORMER SOVIET UNION AND THAT IS WHERE THE BIGGEST MARKET IS MS GUYON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9302030182 930203 WHO'S NEWS INTERNATIONAL BUSINESS MACHINES CORP INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY CHARLES G EMLEY JR 51 YEARS OLD WAS NAMED A VICE PRESIDENT IN THE WHITE PLAINS NYBASED IBM CONSULTING GROUP UNIT OF THIS MAJOR COMPUTER MANUFACTURER MR EMLEY WHOSE POSITION IS NEWLY CREATED HAD BEEN A MANAGEMENT CONSULTING PARTNER FOR THE INFORMATION TECHNOLOGY PRACTICE IN DELOITTE & TOUCHE'S LOS ANGELES OFFICE 9302030181 930203 WHO'S NEWS CAPITOL AMERICAN FINANCIAL CORP CAPITOL AMERICAN FINANCIAL CORP CLEVELAND DAVID H GUNNING A PARTNER IN THE CLEVELAND LAW FIRM OF JONES DAY REAVIS AND POGUE WAS ELECTED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SUPPLEMENTAL HEALTH INSURANCE COMPANY MR GUNNING 50 YEARS OLD AND A CURRENT COMPANY DIRECTOR WHO HAS BEEN CHAIRMAN OF THE COMPENSATION COMMITTEE SUCCEEDS BARRY J HERSHEY 50 AS CHAIRMAN MR HERSHEY WHO OWNS MORE THAN 30 OF CAPITOL'S STOCK WILL REMAIN ON THE NINEMEMBER BOARD MR HERSHEY WHO LIVES IN BOSTON AND IS THE SON OF THE COMPANY'S FOUNDER RESIGNED BECAUSE HE WANTED TO ALIGN THE COMPANY UNDER ONE PERSON AND IN ONE LOCATION SAID REN NELSON SENIOR VICE PRESIDENT MR GUNNING ALSO SUCCEEDS JOHN K ANDERSON JR 44 AS PRESIDENT AND CHIEF EXECUTIVE MR ANDERSON WILL STAY ON TO AID IN THE TRANSITION 9302030180 930203 WHO'S NEWS TAKECARE INC TAKECARE INC CONCORD CALIF GEORGE E BELLO 57 YEARS OLD A VICE PRESIDENT AND CONTROLLER OF RELIANCE GROUP HOLDINGS INC HAS BEEN ELECTED TO THE BOARD OF THIS MANAGED HEALTH CARE COMPANY HE SUCCEEDS ROBERT GREEN WHO RESIGNED 9302030179 930203 WHO'S NEWS MERRILL LYNCH & CO MERRILL LYNCH & CO NEW YORK PETER TUFO 54 YEARS OLD A FORMER SENIOR ADVISER TO LAZARD FRERES & CO WAS NAMED A MANAGING DIRECTOR IN THE INVESTMENT BANKING GROUP OF THIS INVESTMENT AND SECURITIES FIRM MR TUFO ALSO IS UNPAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE NEW YORK STATE THRUWAY AUTHORITY AND THE NEW YORK STATE CANAL CORP 9302030178 930203 WHO'S NEWS BAT INDUSTRIES PICKS BROUGHTON TO BE CHIEF AND DEPUTY CHAIRMAN SPECIAL TO THE WALL STREET JOURNAL LONDON BA T INDUSTRIES PLC NAMED MARTIN BROUGHTON CHIEF EXECUTIVE OFFICER AND DEPUTY CHAIRMAN OF THE TOBACCO AND FINANCIAL SERVICES CONCERN EFFECTIVE APRIL 1 THE APPOINTMENT DIVIDES THE ROLES OF CHAIRMAN AND CHIEF EXECUTIVE WHICH HAVE BEEN HELD SINCE 1982 BY SIR PATRICK SHEEHY A SPOKESMAN SAID SIR PATRICK 62 YEARS OLD HAS BEEN SEEKING TO RELINQUISH SOME OF THOSE RESPONSIBILITIES IN PREPARATION FOR HIS RETIREMENT FROM THE GROUP IN TWO OR THREE YEARS IN HIS ROLE AS DEPUTY CHAIRMAN MR BROUGHTON THE 45YEAROLD CHAIRMAN OF BAT'S EAGLE STAR FINANCIAL SERVICES UNIT SUCCEEDS BRIAN GARRAWAY WHO RETIRED IN NOVEMBER 9302030177 930203 WHO'S NEWS TYCO LABORATORIES INC TYCO LABORATORIES INC EXETER NH TERRY L HALL 39 YEARS OLD AND MOST RECENTLY VICE PRESIDENT AND TREASURER OF UAL CORP WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF FIRE PROTECTION SYSTEMS AND FLOW CONTROL PRODUCTS HE SUCCEEDS L DENNIS KOZLOWSKI CHIEF EXECUTIVE OFFICER AND PRESIDENT WHO SERVED AS FINANCE CHIEF IN AN ACTING CAPACITY SINCE THE RESIGNATION OF RICHARD D POWER IN FEBRUARY 1992 9302030176 930203 WHO'S NEWS HOUSEHOLD INTERNATIONAL INC HOUSEHOLD INTERNATIONAL INC PROSPECT HEIGHTS ILL LOUIS W SULLIVAN BUSH ADMINISTRATION SECRETARY OF HEALTH AND HUMAN SERVICES WAS NAMED A DIRECTOR OF THIS FINANCIAL SERVICES CONCERN EXPANDING THE BOARD TO 14 MEMBERS 9302030175 930203 BUSINESS BRIEF KODAK HAS 299 MILLION 4THPERIOD NET CITES SALES OF CERTAIN SMALL BUSINESSES EASTMAN KODAK CO BENEFITING FROM SALES OF SMALL BUSINESSES AND FAVORABLE CURRENCY TRANSLATIONS REPORTED FOURTHQUARTER NET INCOME OF 299 MILLION OR 92 CENTS A SHARE SALES FOR THE PERIOD WERE 54 BILLION IN THE YEARAGO PERIOD THE ROCHESTER NY PHOTOGRAPHY CHEMICALS AND HEALTHCARE COMPANY HAD A LOSS OF 400 MILLION OR 123 A SHARE AFTER A RESTRUCTURING CHARGE OF 587 MILLION OR 14 CENTS A SHARE CHAIRMAN KAY WHITMORE SAID THAT BECAUSE OF A SLOW US RECOVERY AND RECESSION IN OVERSEAS MARKETS THE INCREASE IN KODAK'S SALES WAS MODEST WITH SLUGGISH VOLUME AND COST INFLATION PUTTING PRESSURE ON OPERATING MARGINS THE SALE OF CERTAIN INVESTMENTS WAS A MAJOR FACTOR IN THE NET EARNINGS GAIN HE SAID HE NOTED THAT FOR THE YEAR THE COMPANY HAD STRONG CASH FLOW AND THAT KODAK CUT ITS DEBT BY 125 BILLION TO 89 BILLION THIS YEAR KODAK EXPECTS A 10TO15 INCREASE IN AFTERTAX EARNINGS TO ABOUT 355 TO 370 A SHARE PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON SAID THAT ESTIMATE INCLUDES COSTS OF 2000 LAYOFFS ANNOUNCED LAST MONTH AND THE ANTICIPATED COSTS OF A RESTRUCTURING OF OVERSEAS OPERATIONS THIS SUMMER A MOVE ALSO ANNOUNCED LAST MONTH THE ESTIMATE ALSO INCLUDES A COST OF 30 CENTS A SHARE PER YEAR FOR THE ONGOING COST OF COMPLYING WITH FINANCIAL ACCOUNTING STANDARD NO 106 WHICH REQUIRES COMPANIES TO ACCOUNT FOR COSTS OF FUTURE AS WELL AS CURRENT RETIREES KODAK AS WELL WILL TAKE AN FAS 106 CHARGE IN THE QUARTER BUT HASN'T YET ESTIMATED HOW BIG THAT CHARGE WILL BE THE BEST PERFORMANCE FOR THE QUARTER CAME FROM THE COMPANY'S CORE IMAGING BUSINESS EXCLUDING RESTRUCTURING CHARGES IN THE YEARAGO QUARTER THE SEGMENT'S EARNINGS FROM OPERATIONS JUMPED 13 TO 316 MILLION SALES EDGED UP 4 TO 197 BILLION NARROWING OF LOSSES KODAK'S INFORMATION SYSTEMS XXX AND USE THIS GRAF NARROWING OF LOSSES KODAK'S INFORMATION SYSTEMS UNIT WHICH MAKES COPIERS AND OTHER OFFICE MACHINES HAD A 5 INCREASE IN SALES TO 117 BILLION LED BY INCREASED DEMAND MOSTLY IN DECEMBER BECAUSE OF LOWER RESEARCH AND DEVELOPMENT AND SALES ADMINISTRATIVE AND ADVERTISING COSTS THE UNIT NARROWED LOSSES TO 12 MILLION COMPARED WITH A LOSS OF 65 MILLION A YEAR AGO EXCLUDING RESTRUCTURING COSTS SEPARATELY KODAK'S JAPAN SUBSIDIARY PLANS TO CUT 70 EMPLOYEES THROUGH VOLUNTARY SEPARATIONS INCLUDING ABOUT ONETHIRD OF THE WORK FORCE IN THE COMPANY'S RESEARCH AND DEVELOPMENT ARM IN YOKAHAMA A SPOKESMAN CONFIRMED THE REDUCTIONS WILL AFFECT MAINLY SEMICONDUCTORRELATED RESEARCHERS 9302030174 930203 WHO'S NEWS KNIGHTRIDDER INC KNIGHTRIDDER INC MIAMI ROSS JONES 50 YEARS OLD WAS NAMED VICE PRESIDENT/FINANCE A NEW POSITION AT THIS COMMUNICATIONS COMPANY THE COMPANY SAID MR JONES WILL BECOME CHIEF FINANCIAL OFFICER LATER THIS YEAR SUCCEEDING ROBERT F SINGLETON 62 WHO PLANS TO RETIRE MR JONES HAS BEEN VICE PRESIDENT AND TREASURER OF READER'S DIGEST ASSOCIATION INC 9302030173 930203 WHO'S NEWS DIXONS GROUP PLC DIXONS GROUP PLC LONDON PETER MORRIS WAS NAMED PRESIDENT OF SILO THE US RETAIL UNIT OF THIS UK CONSUMERELECTRONICS CHAIN MR MORRIS THE 45YEAROLD GROUP PROPERTY DIRECTOR SUCCEEDS ROBERT SIRKIS WHO QUIT 9302030172 930203 MARKETING & MEDIA ADVERTISING AS AD CLUTTER BECOMES TRADITION AT SUPER BOWL VIEWER RECALL SLIPS BY KEVIN GOLDMAN IT HAPPENS EVERY YEAR IN THE SUPER BOWL VIEWERS HAVE COME TO EXPECT A DELUGE OF ADVERTISING CLUTTER ALMOST AS MUCH AS THEY HAVE COME TO EXPECT A BORING BLOWOUT GAME BUT SUNDAY'S GAME ON NBC WAS A VIRTUAL PILEUP BEYOND ALL EXPECTATIONS AS A MORASS OF FRENETIC COMMERCIALS RELENTLESS PROMOTIONAL ANNOUNCEMENTS BROUGHT TO YOU BY BILLBOARDS AND PLUGS WITHIN PLUGS OVERWHELMED A RECORD TELEVISION AUDIENCE THE INEVITABLE RESULT WAS AN EXHAUSTING AND CROWDED SHOWCASE THAT MADE IT DIFFICULT FOR ANY ADVERTISER TO STAND OUT MUCH LESS GET ITS MONEY'S WORTH AT MORE THAN 28000 PER SECOND IN A TYPICAL HOUR OF PRIME TIME VIEWERS ENDURE ALL OF NINE MINUTES OR SO OF COMMERCIALS OR ABOUT 15 OF EACH HOUR BUT SUPER SUNDAY AT TIMES DOUBLED THAT LOAD AND IN ONE 45MINUTE STRETCH A DAUNTING 44 OF AIRTIME WENT TO COMMERCIALS AND PROMOS IN THE HOUR OR SO THAT PRECEDED MICHAEL JACKSON AND THE HALFTIME SHOW VIEWERS WAITED THROUGH NINE INTERRUPTIONS FOR COMMERCIALS AND OTHER PLUGS THAT TOTALED 16 MINUTES AND 30 SECONDS OR ABOUT 28 OF THE TIME THAT'S A WEARING LOAD EVEN FOR THE BIGGEST TELEVISION EVENT OF THE YEAR THE CLUTTER REACHED NEW HEIGHTS EVEN BEFORE THE DALLAS COWBOYS KICKED OFF TO THE BUFFALO BILLS SEVEN MINUTES BEHIND SCHEDULE FIRST CAME THE NATIONAL ANTHEM SUNG BY COUNTRY CROONER GARTH BROOKS ASSISTED IN SIGN LANGUAGE BY THE DEAF ACTRESS MARLEE MATLIN THE ANNOUNCER DIDN'T LET ANYONE FORGET SHE WAS A STAR IN YES NBC SERIES REASONABLE DOUBTS THEN CAME THE COIN TOSS HANDLED BY FORMER FOOTBALL GREAT OJ SIMPSON NOW A SPORTS ANNOUNCER FOR YES NBC DICK ENBERG CALLED THE PLAYBYPLAY FOR NBC SHOWING UP IN THE FOURTH QUARTER IN AN AD FOR GTE COMEDIAN JERRY SEINFELD POPPED UP IN THREE NBC PROMOS TO ALERT VIEWERS THAT HIS SHOW WAS CHANGING DAYS MR SEINFELD ALSO WAS THE MAIN DRAW IN AN AMERICAN EXPRESS CREDITCARD AD SPOOFING THE CNN NIGHTLY LARRY KING LIVE BROADCAST NBC ALSO PLUGGED NEW EPISODES OF ITS TOPRATED SITCOM CHEERS ALERT VIEWERS COULD REALIZE IT WAS CHEERS STAR KIRSTIE ALLEY'S VOICE ON HALF A DOZEN 15SECOND ADS FROM SUBARU OF AMERICA AND THERE WAS ALSO BUD BOWL V FEATURING CORBIN BERNSEN A STAR OF LA LAW THE ONCEHIT SERIES ON YOU GUESSED IT NBC THERE WAS SO MUCH CLUTTER IN FACT THAT IT WAS HARD FOR ANY COMPANY TO BREAK THROUGH SAYS SARAH WADOVICK PROJECT MANAGER OF PERFORMANCE RESEARCH AN INDEPENDENT SPORTS MARKETING RESEARCH FIRM THE NEWPORT RI COMPANY SURVEYED 300 INDIVIDUALS BY TELEPHONE THIS WEEK TO ASK ABOUT AD RECALL FOR THE SUPER BOWL THE STUDY FOUND THAT THE MOSTOFTEN REMEMBERED SPONSOR WAS PEPSICO WHICH WAS ALSO THE GAME'S BIGGEST SPENDER YET FOR PEPSI'S 68 MILLION SPREE ON SUPER BOWL ADS LESS THAN HALF OF THE SURVEY RESPONDENTS 49 TO BE EXACT COULD RECALL HAVING SEEN A PEPSI AD AND WHILE 80 OF THE PEOPLE SURVEYED SAID THEY WATCHED THE MICHAEL JACKSON LIPSYNCHING HALFTIME SHOW A TROUBLING 93 COULDN'T EVEN IDENTIFY THE SHOW'S GENEROUS SPONSOR CAN YOU IT WAS FRITOLAY THE PEPSI UNIT AMERICAN TELEPHONE & TELEGRAPH IT SHOULD BE NOTED RECEIVED A 6 RECALL RATE IN THE PERFORMANCE RESEARCH SURVEY THE RUB AT&T DIDN'T ADVERTISE AT ALL GILLETTE FARED WORSE THAN AT&T WITH A RECALL OF 2 WHAT WAS PARTICULARLY STINGING WAS THAT IT SPENT 34 MILLION TO INTRODUCE A NEW LINE OF MEN'S TOILETRIES IN FOUR SUPER BOWL SPOTS NEVERTHELESS A GILLETTE SPOKESWOMAN SAYS THE COMPANY IS SATISFIED WE'VE COME TO EXPECT CLUTTER SHE SAYS SEVENUP ADVERTISED LATE IN THE GAME AND VIEWERS RESPONDED WITH A RECALL RATE OF ONLY 9 THE UNCOLA'S THREE ADS COSTING UPWARD OF 25 MILLION ALL APPEARED IN THE FOURTH QUARTER AFTER NBC LOST 500000 HOUSEHOLDS OR APPROXIMATELY 12 MILLION VIEWERS BORED BY THE COWBOYS' ROUT A COMPANY SPOKESMAN SAYS SEVENUP IS HAPPY ALTHOUGH HE CONCEDES WE DON'T KNOW IF THE AUDIENCE WAS STILL PAYING ATTENTION BUT WE CREATED BRAND AWARENESS YOU'RE CALLING ME AREN'T YOU MASTER LOCK USES ITS ENTIRE TELEVISION AD BUDGET FOR THE YEAR TO PLAY IN THE BIG LEAGUE OF SUPER BOWL SPONSORS BUT ALAS NO ONE RECALLED THE MASTER LOCK AD ACCORDING TO THE PERFORMANCE RESEARCH SURVEY DESPITE ITS APPEARANCE IN A HALFMINUTE SPOT INCLUDED IN THE FIRST QUARTER BUT ALMOST EVERY ADVERTISER WHO PONIES UP A SMALL FORTUNE FOR 30 SECONDS FEELS THE SUPER BOWL IS MUCH LIKE THE LOTTERY YOU HAVE TO BE IN IT TO WIN AND NO OTHER EVENT MANAGES TO DELIVER VIEWERS IN SUCH SHEER NUMBERS MORE THAN 133 MILLION BY NBC'S COUNT WHICH IS WHY NBC MAY HAVE BEEN THE GAME'S MOST PERSISTENT ADVERTISER WITHIN THE GAME THE NETWORK USED 15 SPOTS TO PROMOTE EVERYTHING FROM ITS NEW SERIES HOMICIDE TO ITS COVERAGE OF THE NATIONAL BASKETBALL ASSOCIATION TO ITS MONDAY SERIES FRESH PRINCE OF BEL AIR POOR JAY LENO THOUGH HERE IT IS THE BIGGEST TV EVENT OF THE YEAR AND NBC COULD HAVE REWARDED MR LENO WHO ENDURED PUBLIC EMBARRASSMENT OVER NBC'S CONTRACT NEGOTIATIONS WITH DAVID LETTERMAN WITH PLUGS GALORE HIS TONIGHT SHOW GOT JUST ONE THE ANTICIPATED MERGER OF NEW YORK AD AGENCY AYER NEW YORK WITH PITTSBURGHBASED KETCHUM COMMUNICATIONS IS OFF ACCORDING TO BOTH PARTIES HAD IT GONE THROUGH THE DEAL WOULD HAVE CREATED AN AGENCY WITH US BILLINGS OF MORE THAN 15 BILLION PAUL ALVAREZ KETCHUM CHAIRMAN SAID PHILOSOPHICAL DIFFERENCES ABOUT NEW BUSINESS TARGETS AND NONMEDIA ADVERTISING CONTRIBUTED TO THE BREAKDOWN IN TALKS KETCHUM WHICH HAD INITIALLY CONTACTED A NUMBER OF AGENCIES ABOUT A POSSIBLE MERGER IS BACK ON THE PROWL MR ALVAREZ SAID JERRY SIANO AYER CHAIRMAN SAID THE ANTICIPATED DEAL FOUNDERED ON OPERATIONAL DIFFERENCES IT WASN'T A MATTER OF PERSONALITIES HE SAID THEY CAME AS CLOSE AS WE WANTED ANYONE TO BE AYER HAS AN AGREEMENT WITH AN UNIDENTIFIED INVESTMENT GROUP TO FINANCE POTENTIAL ACQUISITIONS IN DIRECT RESPONSE PROMOTION AND PUBLIC RELATIONS MR SIANO SAID WHO'S NEWS SAATCHI & SAATCHI ADVERTISING HIRED PHILIP PURDON DIRECTOR OF LEO BURNETT'S NEW BUSINESS DEVELOPMENT IN EUROPE AS EXECUTIVE VICE PRESIDENT IN CHARGE OF SAATCHI'S NEW BUSINESS EFFORTS IN NORTH AMERICA MR PURDON 35 REPORTS TO DICK O'BRIEN SAATCHI & SAATCHI ADVERTISING IS A UNIT OF SAATCHI & SAATCHI CO SAATCHI & SAATCHI'S AC&R UNIT PROMOTED THREE SENIOR VICE PRESIDENTS TO EXECUTIVE VICE PRESIDENT STEVE BENNETT DOUG FIDOTEN AND LIDA BURPEE SUPERVISOR ON THE ESTEE LAUDER ACCOUNT SUPER BOWL XXVII THE GAME LASTED APPROXIMATELY 3 HOURS AND 25 MINUTES VIEWERS WERE SACKED WITH 24 BREAKS AND 68 COMMERCIALS AND PROMOS FOR COMING NBC SHOWS NOT COUNTING PREGAME AND POSTGAME SHOWS AND THE HALFTIME CONCERT STARRING SINGER MICHAEL JACKSON A SAMPLE HOUR FOR A REVIEWER WATCHING WNBCTV IN NEW YORK 9302030171 930203 TREASURY PLANS SALE OF SHORTTERM BILLS TOTALING 232 BILLION WASHINGTON THE TREASURY PLANS TO PAY DOWN 325 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 235 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON MAY 13 1993 AND AUG 12 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794C77 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794F33 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9302030170 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE COIN OF THE REALM BY TERENCE ROTH BONN RESIDENTS OF THIS FORMER GERMAN CAPITAL WILL REMEMBER FEB 3 2003 AS THE DAY MOST OF EUROPEAN OFFICIALDOM SWEPT INTO TOWN TO TOAST SPAIN'S BELATED ENTRY INTO THE SINGLECURRENCY CLUB HEADED FOR THE EUROPEAN CENTRAL BANK IN THEIR NEW BATTERYPOWERED MERCEDES LIMOUSINES THEY CAME TO CELEBRATE A MOVE THAT HAD MADE SPAIN THE EIGHTH COUNTRY SINCE 1999 TO TRADE IN ITS WRINKLED NOTES AND TARNISHED COINS FOR SHINY ECUS DURING A RECEPTION AT THE BANK EUROCRATS SWAPPED HORROR STORIES ABOUT THE CRISIS OF 1996 WHEN PLANS FOR MONETARY UNION AS OUTLINED IN THE TREATY SIGNED FIVE YEARS EARLIER AT MAASTRICHT THE NETHERLANDS SEEMED READY TO IMPLODE AND THE MARKETS HEAVED ABLE AT LAST TO DISCUSS IT ALL CALMLY THEY CHATTED OVER COCKTAILS ABOUT HOW EUROPE AND THEIR OWN CAREERS HAD BEEN THREATENED WITH RUIN IT WAS A NEARRUN THING THE NEARESTRUN THING YOU EVER SAW IN YOUR LIFE REMARKED ONE EUROPEAN COMMUNITY OFFICIAL AND IT WAS THE POOR RELATIONS WHO SAVED THE DAY ONCE A FAVORITE TOPIC OF THE EC'S MOST VOCAL SKEPTICS MONETARY UNION HAS COME A LONG WAY SINCE THE ICY DECEMBER DAY IN 1999 WHEN THE FIRST TIER OF CONVERTS SWITCHED THEIR DEBT STRUCTURES LEGAL CONTRACTS AND VENDING MACHINES TO THE NEW CURRENCY INDEED THE ECU HAS TURNED MOST OF WESTERN EUROPE INTO THE LARGEST MONETARY AND TRADING BLOC IN THE WORLD BELGIANS AND ITALIANS CAN NOW BUY DINNER IN COPENHAGEN WITH THE SAME CASH THEY WOULD USE IN BRUSSELS OR ROME TRADING VOLUME IN WESTERN EUROPE HAS INCREASED SIGNIFICANTLY FOR THE ECU ENABLES INVESTORS TO TRANSFER FUNDS EASILY FROM ONE NATIONAL MARKET TO THE OTHER AND THE ECU ITSELF WHICH EVOLVED FROM THE THEORETICAL EUROPEAN CURRENCY UNIT A WEIGHTED AVERAGE OF EUROPEAN MONETARY SYSTEM CURRENCIES THAT WAS USED IN CREDIT MARKETS HAS JOINED THE DOLLAR AND THE YEN AS A PRIMARY TRADING CURRENCY IT WORKED SAYS ONE COMMISSION OFFICIAL BUT YOU REALLY HAVE TO MARVEL AT HOW NAIVE WE ALL WERE IN THE EARLY 1990S AS IT HAPPENED ANY POSTMAASTRICHT OPTIMISM QUICKLY FADED IN 1992 AS EUROPE'S CURRENCY MARKETS WERE BUFFETED BY A SERIES OF CRISES OVER TAXES FARM AID FINANCIAL TRANSFERS TO POORER EC STATES COORDINATION OF FISCAL AND MONETARY POLICY AND ECONOMIC DIVERGENCE EVEN THE DEBATE OVER WHERE THE EUROPEAN CENTRAL BANK WOULD BE LOCATED CAUSED RIPPLES THEN OF COURSE THERE WAS THE QUESTION OF WHAT 350 MILLION EUROPEANS WOULD ACTUALLY BE FOLDING INTO THEIR WALLETS AT THE END OF THE DECADE GERMANS CARPED THAT ECU SOUNDED TOO MUCH LIKE KUH THE GERMAN WORD FOR COW THOUGH THE REAL PROBLEM MAY HAVE BEEN THAT IT DIDN'T SOUND ENOUGH LIKE DEUTSCHE MARK BUT WHAT TO CALL THE NEW CURRENCY AND ITS SMALL CHANGE WASN'T HALF THE PROBLEM BEFORE EUROPE'S MINTS COULD PRINT THE 10 BILLION NEW NOTES AND STRIKE THE ROUGHLY 70 BILLION NEW COINS THEY NEEDED TO KNOW WHAT ELSE TO PUT ON THE MONEY WHOSE LIKENESSES WOULD IT BEAR AND WHAT LANGUAGES WHAT COLORS WOULD THE BILLS BE AND IN WHAT DENOMINATIONS THE PROPOSAL ACCEPTED IN 1994 WAS TO HAVE AN EC MOTIF ON ONE SIDE WITH NATIONAL SYMBOLS ON THE OTHER NEWS THAT IT WOULD TAKE YEARS TO CHURN OUT THE CURRENCY PLEASED ECONOMISTS A GRADUAL PHASEIN WOULD HELP TO MINIMIZE THE INFLATIONARY IMPACT AND BY SEEING PRICES IN FAMILIAR CURRENCIES ALONGSIDE THOSE IN ECUS CONSUMERS WOULD BE ABLE TO KEEP RETAILERS FROM ROUNDING UP THE ECU PRICES TOO GENEROUSLY BY 1996 HOWEVER ONLY GERMANY FRANCE THE NETHERLANDS BELGIUM AND LUXEMBOURG COULD MEET THE ENTRY CRITERIA AND THIS WAS SHORT OF THE SIMPLE MAJORITY NEEDED FOR AN EARLY START OF THE PLAN'S THIRD AND FINAL STAGE ADOPTION OF THE ECU AS A UNIVERSAL CURRENCY THAT SAME YEAR BRITAIN AND DENMARK OPTED OUT RATHER THAN SURRENDER SOVEREIGNTY OTHERS ESPECIALLY ITALY AND SPAIN WERE STILL BATTLING ENORMOUS DEFICITS AND INFLATION AND SO WERE EXCLUDED FROM THE FIRST GROUP HEADING FOR MONETARY UNION IN TRYING TO SAVE THE PLAN THE EC COMMISSION ALMOST TRIGGERED ITS COLLAPSE THE PROVISIONS OF THE MAASTRICHT TREATY WERE SET TO TAKE EFFECT AUTOMATICALLY IN 1999 ANYWAY BUT THE COMMISSION FEARED THAT THE INTERVENING YEARS COULD BRING CURRENCY TURMOIL AND POLITICAL REVERSALS CAUSING THE CORE TO UNRAVEL OFFICIALS IN BRUSSELS PUSHED HARD TO BEND THE RULES SO THAT ITALY AND SPAIN COULD PARTICIPATE THE GERMAN CHANCELLOR FACING A POPULAR REVOLT AMID BUNDESBANK WARNINGS OF MONETARY INSTABILITY THREATENED TO PULL HIS COUNTRY OUT OF THE PROCESS AUSTRIA PREPARING FOR ENTRY INTO THE EC IN 1999 UNDER GERMANY'S INFLUENTIAL PATRONAGE WAS SURE TO FOLLOW EVEN THE PROEC DUTCH SHOWED SIGNS OF WAVERING SUDDENLY EUROPEAN MONETARY UNION LOOKED LIKE A HOUSE WITHOUT WALLS OR A GROUND FLOOR IT TOOK PORTUGAL GREECE AND IRELAND TO SAVE THE PLAN EACH HAD LITTLE CHANCE OF QUALIFYING FOR ADOPTION OF THE ECU WITHIN THE NEXT 10 YEARS BUT IF SQUABBLES AMONG THE RICHER COUNTRIES KILLED OFF MONETARY UNION THEIR CHANCE FOR SHARED PROSPERITY WOULD NEVER COME EC CANDIDATES SWEDEN POLAND AND HUNGARY JOINED THE THREE IN ISSUING AN APPEAL TO REASON IN THE END ITALY AND SPAIN WERE PERSUADED NOT TO PRESS THEIR CASE AND MONETARY UNION WAS DELAYED UNTIL 1999 THUS IN DECEMBER OF THAT YEAR AUSTRIA AND THE ORIGINAL FIVE CANDIDATES OFFICIALLY ADOPTED THE ECU AS THEIR CURRENCY ITALY JOINED THEM IN 2001 AND IRELAND IS LIKELY TO FOLLOW SPAIN LATER THIS SUMMER LONDON'S FINANCIAL MARKETS ARE NOW SERIOUSLY HAMPERED BY BRITAIN'S DECISION TO STICK WITH THE POUND SINCE THE BANKING CRISIS OF 2002 HOWEVER THE LABOUR GOVERNMENT HAS BEEN RECONSIDERING THE MATTER AND IS BELIEVED TO BE PREPARING TALKS TO DISCUSS SEEKING ENTRY THE POUND STOOD ALONE FOR AN EMPIRE SAYS A FORMER BRITISH PRIME MINISTER BUT NOW THE ECU STANDS FOR EUROPE MR ROTH IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S FRANKFURT BUREAU 9302030169 930203 WHO'S NEWS MOTOROLA INC MOTOROLA INC SCHAUMBURG ILL SAMUEL C SCOTT 3RD 48 YEARS OLD WAS ELECTED TO THE BOARD OF THIS ELECTRONIC COMMUNICATIONS COMPANY EXPANDING IT TO 17 MEMBERS MR SCOTT IS A VICE PRESIDENT OF CPC INTERNATIONAL INC A CONSUMER FOODS COMPANY AND PRESIDENT OF CORN PRODUCTS ITS REFINING BUSINESS 9302030168 930203 INTERNATIONAL JOINT VENTURE IS SET FOR AUTO IN MALAYSIA KUALA LUMPUR MALAYSIA A JOINTVENTURE AGREEMENT WAS SIGNED BETWEEN MALAYSIAN AND JAPANESE CONCERNS TO MAKE MALAYSIA'S SECOND NATIONAL CAR THE PLANNED AUTO WILL TARGET CONSUMERS WHO CAN'T AFFORD THE COUNTRY'S INCREASINGLY EXPENSIVE FIRST NATIONAL AUTO THE PROTON SIX COMPANIES AND INVESTMENT CONCERNS FROM MALAYSIA AND JAPAN FORMALLY AGREED TO PARTICIPATE IN THE 400 MILLION MALAYSIAN DOLLAR US1524 MILLION PROJECT THE PARTNERSHIP SAID IT EXPECTS PRODUCTION OF THE MINICAR MODELED AFTER THE DAIHATSU MIRA TO BEGIN BY JULY OF NEXT YEAR LIKE THE PROTON THE SECOND AUTOMOTIVE VENTURE IS THE BRAINCHILD OF PRIME MINISTER MAHATHIR MOHAMAD SINCE THE EARLY 1980S THE PREMIER HAS SOUGHT TO MAKE MALAYSIA'S NASCENT AUTO INDUSTRY THE CENTERPIECE OF HIS AMBITIOUS PLANS TO CREATE A HEAVYINDUSTRY BASE IN THE COUNTRY WHILE THE PROTON HAS PRICE ADVANTAGES OVER COMPETING MODELS THANKS LARGELY TO GOVERNMENT FINANCIAL BREAKS THE COST OF CURRENT MODELS RANGE FROM ABOUT M30000 TO M50000 THE NEW CAR IS EXPECTED TO BE PRICED AT ABOUT M24000 AMONG THE VENTURE'S PARTNERS ARE A UNIT OF UMW HOLDINGS BHD PNB EQUITY RESOURCE CORP MEDBUMIKAR MARA SDN BHD DAIHATSU MOTOR CO AND MITSUI & CO 9302030167 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE COMMUNITY COLLAGE WE ASKED A GROUP OF EUROPEAN POLITICIANS AND PUNDITS ABOUT THE EC'S FUTURE HERE'S WHAT THEY FORSEE BY BOB HAGERTY BRUSSELS WHAT'S TO BECOME OF THE EUROPEAN COMMUNITY TO GET AN ANSWER TO THAT QUESTION OR AT LEAST TO GET SOME INFORMED GUESSES THE WALL STREET JOURNAL SOUGHT THE ADVICE OF POLITICIANS AND PUNDITS IN EUROPE NONE OF THOSE ASKED THINK THE EC WILL FADE INTO INSIGNIFICANCE BUT THEIR RESPONSES SHOW HOW DIVIDED EUROPEANS REMAIN OVER WHAT KIND OF EUROPE THEY SHOULD BE BUILDING A FRENCH GOVERNMENT OFFICIAL FOR INSTANCE ENVISIONS A FLEXIBLE EUROPE UNDER WHICH A HARD CORE OF MEMBERS WOULD LEAD THE WAY TOWARD UNION WHILE OTHERS WOULD GET MORE TIME TO PREPARE THEMSELVES MEANWHILE A FRENCH MEMBER OF PARLIAMENT FORESEES A EUROPE OF NATIONS UNDER WHICH EUROCRATS AND THEIR SMELLY STEW POTS OF IMPRACTICABLE EURODREAMS WOULD BE BANISHED TO THE SIDELINES HERE ARE EXCERPTS FROM THE RESPONSES MS GUIGOU DOESN'T BELIEVE THE EC WILL HAVE TO WAIT FOR LAGGARDS TO BUILD THE EUROPEAN UNION ENVISIONED BY THE MAASTRICHT TREATY ONE CAN IMAGINE THAT IN VARIOUS DOMAINS EACH MEMBER COULD ADVANCE AT ITS OWN PACE WITHOUT PREVENTING THOSE WHO ARE MORE AMBITIOUS FROM PROGRESSING FASTER SHE SAYS THIS WOULDN'T BE EUROPE A LA CARTE WHICH SUGGESTS ONE CHOOSES WHAT IS PLEASANT WHILE REJECTING WHAT IS MORE DIFFICULT INSTEAD THIS WOULD BE A FLEXIBLE EUROPE' WHICH WOULD ACCORD DELAYS TO SOME MEMBER STATES WHILE A HARD CORE WOULD PUT INTO EFFECT WITHIN THE PERIOD FORESEEN A MONETARY AND ECONOMIC UNION AND A POLITICAL UNION WITH A FOREIGN POLICY A COMMON DEFENSE AND EUROPEAN CITIZENSHIP THE EC WILL ACHIEVE A MONETARY UNION BY THE END OF THE 1990S MS GUIGOU PREDICTS THE NUMBER OF COUNTRIES THAT WILL PARTICIPATE SHE SAYS IS GREATER THAN PEOPLE TEND TO THINK TODAY A COMMON CURRENCY KNOWN AS THE ECU WILL BECOME A MAJOR WORLD CURRENCY ALONGSIDE THE DOLLAR AND THE YEN MEMBERS WILL PARTICIPATE TO VARYING DEGREES IN A COMMON FOREIGN POLICY AND A EUROPEAN ARMY BUT THOSE WHO WILL BE MEMBERS OF THE HARD CORE OF THIS ACTIVITY WILL BE AUDACIOUS AND READY TO ACT FIRMLY MS GUIGOU SAYS ADDING THAT THIS FLEXIBLE EUROPE WILL NEED AN ELECTED PRESIDENT TO EMBODY THE COMMON WILL OF ITS MEMBERS I HOPE THAT THIS CAN BE ACHIEVED WITHIN 10 YEARS BUT I'M NOT SURE MR SEGUIN A PROMINENT OPPONENT OF THE MAASTRICHT TREATY BELIEVES THAT A DECADE FROM NOW THERE WILL BE A EUROPE OF NATIONS THERE WILL HE SAYS BE AN ECONOMIC ZONE WITHOUT BORDERS INCLUDING THE SCANDINAVIAN COUNTRIES SOME EASTERN EUROPEAN COUNTRIES AND PROBABLY TURKEY BUT HE ADDS WHAT WILL NOT SURVIVE BECAUSE IT'S ALREADY BURIED IS THE DANGEROUS UTOPIA OF A FEDERAL EUROPE THAT WAS SECRETLY CONCOCTED FOR US BY EUROCRATS IN THE SMELLY STEW POTS OF THEIR BRUSSELS HEADQUARTERS SOME IDEOLOGUES AND TECHNOCRATS WILL RETAIN A NOSTALGIA FOR THE COMMON CURRENCY THE COMMON FOREIGN AND DEFENSE POLICIES DREAMS WHOSE ACHIEVEMENT THE MAASTRICHT TREATY SHIMMERED BEFORE US AS IMMIMENT MR SEGUIN SAYS BUT MONETARY UNION AS CONCEIVED UNDER MAASTRICHT HAS ALREADY PROVED IMPRACTICABLE AND DISASTROUS HE SAYS AS FOR A COMMON FOREIGN POLICY HE SAYS IT'S CLEAR WITH THE YUGOSLAV CRISIS THAT WHEN THE COMMUNITY GETS MIXED UP IN FOREIGN POLICY IT COMBINES IMPOTENCE WITH DISHONOR EVEN SO MR SEGUIN ADDS THERE WILL BE MORE AND MORE ROOM FOR FLEXIBLE COOPERATION AMONG MEMBER STATES WHICH WILL BE ABLE TO ESCAPE THE VORACIOUS TENTACLES OF THE BRUSSELS OCTOPUS MS SEILERALBRING SAYS SHE IS CONVINCED THAT THE EC WILL BE STRONGER THAN SOME FEAR IT WILL BE AT ANY RATE MUCH STRONGER THAN TODAY MEMBER STATES KNOW THERE IS NO ALTERNATIVE THE EC WILL DEVELOP PIECE BY PIECE BEYOND THE BLUEPRINT DRAWN UP IN THE MAASTRICHT TREATY SHE SAYS ONE CAN'T SAY WHAT IT WILL LOOK LIKE YET OR HOW IT WILL FUNCTION IT'S A MATTER OF GRADUAL CONTINUAL PROGRESS THE GERMAN GOVERNMENT'S FEELING ON THIS IS THAT MAASTRICHT DOESN'T GO FAR ENOUGH A MONETARY UNION WILL BE ACHIEVED TOWARD THE END OF THIS CENTURY MS SEILERALBRING PREDICTS AT PRESENT MY ESTIMATE IS THAT NOT ALL OF THE EC MEMBERS WILL BE INCLUDED IN THIS UNION BECAUSE OF THE ECONOMICPERFORMANCE STANDARDS REQUIRED DEVELOPING A COMMON ARMY IS A FIRM INTENTION WHOSE TIMING DEPENDS ON FUTURE DEVELOPMENTS SHE SAYS WE NEED A CONCRETE DEFENSE POLICY SHE SAYS RECENT EVENTS IN YUGOSLAVIA SHOW US THAT WE NEED TO BE ABLE TO ACT IN A VIGOROUS POLITICAL MANNER AN OPPONENT OF THE MAASTRICHT TREATY MR MCNAIRWILSON DOUBTS THAT ANY NEW MEMBERS WILL JOIN THE EC IN THE NEXT 10 YEARS THERE WILL BE A HELL OF A LOT OF TALK ABOUT WIDENING AND DEEPENING AND ALL THAT RUBBISH BUT AT THE END OF THE DAY I THINK YOU WILL FIND THAT THERE WILL NOT BE MUCH CHANGE HE SAYS GIVEN THAT GERMANY IS ALREADY RUNNING EUROPE HOW MANY PEOPLE WILL WANT TO COME IN WE'VE HAD A TASTE OF THAT BEFORE THE INTERESTS OF GERMANY AND FRANCE MAY WELL DIVERGE HE SAYS PUTTING A HUGE STRAIN ON THE FRANCOGERMAN ALLIANCE AT THE CORE OF THE EC WILL THE GERMANS TURN ONCE AGAIN TOWARDS THE EAST FOR THEIR ECONOMIC LINKS IN THE FUTURE SIR PATRICK ASKS IF THEY DO AND START MAKING DEALS WITH THE POLES AND OTHERS THIS COULD MEAN THE IMPORTATION OF CHEAP AGRICULTURAL PRODUCTS WHICH WILL GREATLY WEAKEN THE FRENCH AGRICULTURAL POSITION IN EXPORTING TO GERMANY BY THE YEAR 2003 THE OLD DREAM OF BUILDING A SOCALLED UNITED STATES OF EUROPE WILL FINALLY BE DEAD SAYS MR GORDON THE INEVITABLE ACCESSION OF NEW AND VERY DIVERSE NATIONS TO EC MEMBERSHIP WILL MAKE THE MAASTRICHT NOTION OF A EUROPEAN UNION' NEXT TO IMPOSSIBLE TO IMPLEMENT THE EC WILL STILL BE THE WORLD'S MOST IMPRESSIVE EXAMPLE OF INTERSTATE AND SUPRANATIONAL COOPERATION BUT IT WILL NOT BE THE COMPREHENSIVE FEDERATION CALLED FOR BY SOME OF THE COMMUNITY'S PRESENT ELITES MR GORDON AN AMERICAN BELIEVES THAT BY THE END OF THIS DECADE THE COMMUNITY WILL HAVE SEVERAL NEW MEMBERS CERTAINLY AUSTRIA AND SWEDEN AND PROBABLY NORWAY AND FINLAND WHICH WILL NOT WANT TO BE LEFT BEHIND POLAND THE CZECH REPUBLIC HUNGARY AND SWITZERLAND MAY BE MEMBERS OF SOME OVERALL COMMUNITY BUT THEY WILL NOT HAVE BEEN READY OR ABLE TO ACCEPT THE ENTIRE MENU OF EC AFFAIRS THE BALTICS BALKANS AND TURKEY WILL HAVE NO MORE THAN ASSOCIATE STATUS MR GUERRIERI WHO IS ALSO A SENIOR FELLOW AT THE ITALIAN INSITITUTE FOR INTERNATIONAL AFFAIRS IN ROME SEES A STRONGER EUROPE BUT NOT ONE THAT FOLLOWS THE MAASTRICHT BLUEPRINT MUCH OF THE IMPETUS FOR BUILDING THE EC WILL BE THE NEED FOR A BODY TO NEGOTIATE WITH TWO OTHER INTEGRATED REGIONAL SYSTEMS CENTERED IN JAPAN AND NORTH AMERICA HE SAYS BUSINESSES WILL LOOK TO THE EC TO PROTECT AND PROMOTE THEIR INTERESTS ON THE GLOBAL STAGE BUT GERMANY AND FRANCE WON'T BE ABLE TO COME TO TERMS ON A MONETARY UNION MR GUERRIERI BELIEVES LEAVING EUROPE WITH SOME KIND OF SYSTEM THAT WILL STILL ALLOW PARITIES AMONG NATIONAL CURRENCIES TO BE ADJUSTED EUROPE WILL PROCEED AT MULTIPLE SPEEDS WITH DIFFERENT GROUPS OF COUNTRIES BANDING TOGETHER TO PURSUE DIFFERENT AIMS WHILE LEAVING THEIR DOORS OPEN TO NEW PARTICIPANTS SWISS VOTERS WILL CHANGE THEIR MINDS AND DECIDE THEY NEED TO INTEGRATE THEIR ECONOMY INTO THE REST OF EUROPE THEY WILL REALIZE THAT THEY CANNOT STAY OUT MR GUERRIERI SAYS THE EDINBURGH SUMMIT OF EC LEADERS IN DECEMBER MAY HAVE PUT THE EC BACK ON TRACK BUT EUROPE'S ULTIMATE DESTINATION IS FOGGIER THAN EVER MAKING EVEN A SHORTTERM FORECAST A HAZARDOUS VENTURE SAYS MR COHENTANUGI ENLARGING THE EC AND IMPLEMENTING THE MAASTRICHT TREATY WILL FORCE THE EC TO MAKE ITS INSTITUTIONS MORE FLEXIBLE TO AVOID HAVING TO CHOOSE BETWEEN DEADLOCK AND DILUTION MR COHENTANUGI SAYS UNDER THE GENERAL UMBRELLA OF THE EUROPEAN UNION THE SINGLE MARKET AND THE REFORMED EC INSTITUTIONS WILL REMAIN THE COMMON DENOMINATOR OF ALL MEMBER STATES HE SAYS A HARD CORE OF FOUNDING MEMBER STATES WILL HAVE ADOPTED THE SINGLE CURRENCY INTEGRATED THEIR ECONOMIC AND IMMIGRATION POLICIES AND STARTED BUILDING A COMMON DEFENSE CAPABILITY THESE COUNTRIES WILL BE THE DRIVING FORCE FOR AN EFFECTIVE COMMON FOREIGN AND SECURITY POLICY WITH WHICH THOSE MEMBER STATES THAT DID NOT WANT FURTHER INTEGRATION IN THESE AREAS WILL REMAIN LOOSELY ASSOCIATED MR HAGERTY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BRUSSELS BUREAU 9302030166 930203 TENNECO CHALKS UP 4TH QUARTER PROFIT AFTER LOSS IN '91 BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON TENNECO INC NEWLY RESTRUCTURED AND CITING IMPROVED EARNINGS IN ITS NATURAL GAS PIPELINE AND AUTO PARTS DIVISIONS AMONG OTHERS SWUNG TO A PROFIT IN THE FOURTH QUARTER FROM A LOSS A YEAR EARLIER IT REPORTED NET INCOME OF 35 MILLION OR 21 CENTS A SHARE COMPARED WITH A LOSS OF 26 MILLION OR 24 CENTS A SHARE A YEAR EARLIER THE FIGURES WERE IN LINE WITH ANALYSTS' EXPECTATIONS SEPARATELY TENNECO LOWERED ITS PREVIOUS ESTIMATE OF THE CHARGE IT EXPECTS TO TAKE FROM ADOPTING THE NEW METHOD OF ACCOUNTING FOR FUTURE RETIREE HEALTH COSTS THE COMPANY PLANS TO TAKE THE ENTIRE CHARGE OF 430 MILLION IN THE FIRST QUARTER OF 1993 INSTEAD OF EXERCISING ITS OPTION TO RECORD THE LIABILITIES OVER A 20YEAR PERIOD AS ALLOWED UNDER NEW FINANCIAL ACCOUNTING STANDARDS BOARD RULES TENNECO PREVIOUSLY ESTIMATED THE CHARGE WOULD BE IN THE RANGE OF 475 MILLION TO 625 MILLION TENNECO SHARES WERE TRADING LATE YESTERDAY AT 41875 UP 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE MOST RECENT EARNINGS ARE AFTER A CHARGE OF 12 MILLION OR EIGHT CENTS A SHARE FROM PREPAYMENT OF DEBT THE YEARAGO QUARTER INCLUDED A LOSS OF 5 MILLION OR THREE CENTS A SHARE FROM DISCONTINUED OPERATIONS REVENUE FELL 8 TO 331 BILLION FROM 359 BILLION THE CONGLOMERATE'S LARGEST DIVISION ITS CASE CORP FARM AND CONSTRUCTION EQUIPMENT MANUFACTURING OPERATION REMAINED IN THE RED THOUGH NOT AS DEEPLY CASE REPORTED A FOURTHQUARTER PRETAX LOSS OF 94 MILLION COMPARED WITH A LOSS OF 227 MILLION A YEAR AGO BUT TENNECO'S OTHER FIVE DIVISIONS WERE SOLIDLY IN THE BLACK MICHAEL WALSH 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO ANNOUNCED LAST MONTH THAT HE HAS BRAIN CANCER BUT PLANS TO STAY IN HIS JOB INDEFINITELY MET WITH SECURITIES ANALYSTS IN NEW YORK TO DISCUSS THE COMPANY'S LATEST RESULTS THE TENNECO TURNAROUND IN 1992 IS BUT THE FIRST PHASE OF A LONGTERM TRANSFORMATION OF THIS COMPANY HE SAID MR WALSH ASSERTED THAT TENNECO IS POISED FOR EVEN BETTER PERFORMANCE IN 1993 IN PART BECAUSE THE COMPANY'S DEBT LOAD OF 42 BILLION IS 28 BELOW THE LEVEL IN SEPTEMBER 1991 WHEN HE ARRIVED TENNECO'S DEBT IS CURRENTLY EQUAL TO 53 OF ITS CAPITAL COMPARED TO 70 WHEN MR WALSH TOOK OVER ANALYSTS SAID THERE'S PLENTY OF WORK AHEAD AND THE TURNAROUND MR WALSH DESCRIBES ISN'T COMPLETE RONALD BARONE OF KIDDER PEABODY & CO SAID MR WALSH'S PROGRAM TO IMPROVE QUALITY CONTROLS SHOULD FURTHER IMPROVE EARNINGS I THINK IT COULD ADD 225 PER SHARE TO EARNINGS IN ITS FIFTH YEAR HE SAID THE COST OF RECALLS AND CORRECTING PRODUCTION DEFECTS WAS EQUAL TO 20 OF TENNECO'S REVENUE IN 1991 THAT WAS CUT TO 18 LAST YEAR HE SAID FOR THE FULL YEAR 1992 TENNECO HAD NET INCOME OF 292 MILLION OR 192 A SHARE INCLUDING A GAIN OF 71 MILLION FROM DISCONTINUED OPERATIONS COMPARED WITH A LOSS IN 1991 AFTER RESTRUCTURING CHARGES OF 732 MILLION OR 609 A SHARE REVENUE FELL 2 TO 1314 BILLION FROM 1342 BILLION 9302030165 930203 CREDIT RATINGS JWP INC RYE BROOK NY MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED THE WATER FACILITIES REVENUE BONDS OF JAMAICA WATER SUPPLY CO A UNIT OF THIS TECHNICAL SERVICES COMPANY THE BONDS WERE LOWERED TO BA2 FROM BA1 THE AGENCY CITED THE POTENTIAL EFFECT ON THE WATER UTILITY OF THE PARENT'S DETERIORATING CREDIT QUALITY ABOUT 25 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID THAT ALTHOUGH JAMAICA WATER FUNCTIONS SEPARATELY FROM JWP AND ENJOYS SATISFACTORY OPERATING PERFORMANCE IT REMAINS CONCERNED THAT ANY POSSIBLE BANKRUPTCY COURT PROCEEDINGS FOR JWP COULD ULTIMATELY INVOLVE THE WATER UTILITY JWP IS RENEGOTIATING ITS SENIOR LONGTERM NOTES AND BANK DEBT AFTER FAILING TO COMPLY WITH CERTAIN LOAN COVENANTS TRIGGERED BY ITS THIRDQUARTER LOSS 9302030164 930203 BUSINESS BRIEF LTV LOSS WIDENS FOR FOURTH QUARTER ON LOWER STEEL PRICES CLEVELAND LTV CORP'S FOURTHQUARTER LOSS GREW TO 129 MILLION FROM 85 MILLION BECAUSE OF LOWER STEEL PRICES AND A ONETIME CHARGE FOR A DISPUTED HEALTH CARE LIABILITY THE CHARGE FOR 140 MILLION COVERS OBLIGATIONS CREATED BY THE COAL INDUSTRY RETIREE HEALTH BENEFIT ACT PASSED BY CONGRESS LAST YEAR LTV WHICH NO LONGER IS IN THE COAL BUSINESS HAS GONE TO COURT TO CHALLENGE THE LAW THE CHARGE WAS PARTIALLY OFFSET BY A 60 MILLION PRETAX CREDIT RELATED TO THE 1988 SALE OF THE COMPANY FACILITY IN WARREN OHIO OVERALL SALES ROSE TO 947 MILLION FROM 925 MILLION AS STEEL SHIPMENTS INCREASED TO 178 MILLION TONS FROM 165 MILLION TONS LTV SAID ITS HIGHER SHIPMENTS AND LOWER COSTS WERE LARGELY OFFSET BY LOWER SELLING PRICES THE QUARTER'S RESULTS ALSO INCLUDED A SMALL OPERATING PROFIT AT LTV'S ENERGY PRODUCTS UNIT AND A GAIN OF 5 MILLION FROM THE DISPOSAL OF ITS AEROSPACE AND DEFENSE BUSINESSES ON A PERSHARE BASIS THE STEEL AND ENERGY PRODUCTS CONCERN'S LOSS SWELLED TO 110 A SHARE FROM 12 CENTS A SHARE HOWEVER THE CURRENT COMMON SHARES WOULD BE VIRTUALLY WORTHLESS UNDER THE CHAPTER 11 BANKRUPTCYCOURT REORGANIZATION PLAN LTV HAS FILED 9302030163 930203 INTERNATIONAL TAIWAN'S JOBLESS RATE DOWN TAIPEI TAIWAN TAIWAN'S UNEMPLOYMENT RATE STOOD AT 13 OF THE WORK FORCE IN DECEMBER DOWN 012 PERCENTAGE POINT FROM THE YEAREARLIER MONTH AND DOWN 009 PERCENTAGE POINT FROM NOVEMBER THE DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS REPORTED 9302030162 930203 THOR INDUSTRIES' SALES RISE 79 JACKSON CENTER OHIO THOR INDUSTRIES INC SAID SALES FOR THE THREE MONTHS ENDED JAN 31 ROSE 79 TO 803 MILLION FROM 449 MILLION A YEAR AGO THE MOTOR HOME AND TRAILER MAKER SAID SALES FOR THE SIX MONTHS WERE UP 68 TO 1843 MILLION FROM 1094 MILLION IN THE YEAREARLIER PERIOD 9302030161 930203 FINANCING BUSINESS FPL GROUP FPL GROUP'S PRINCIPAL SUBSIDIARY FLORIDA POWER & LIGHT CO SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE FUTURE SALE OF 750 MILLION OF FIRST MORTGAGE BONDS THE COMPANY SAID NET PROCEEDS FROM THE SALE OF THE DEBT WHICH MAY TAKE THE FORM OF SECURED MEDIUMTERM NOTES WOULD BE USED TO FUND CONSTRUCTION OF ADDITIONAL ELECTRIC FACILITIES AND TO REDEEM HIGHCOST DEBT THE COMPANY SAID ITS PLANS CALL FOR ABOUT 15 BILLION OF ANNUAL CONSTRUCTION BOTH THE PARENT AND UNIT ARE BASED IN MIAMI 9302030160 930203 FINANCING BUSINESS TEJAS GAS CORP TEJAS GAS CORP HOUSTON SAID IT COMPLETED ITS OFFERING OF 50 MILLION OF 996 CUMULATIVE PREFERRED STOCK THE NATURAL GAS CONCERN SAID PROCEEDS WILL BE USED TO REDUCE DEBT PAINEWEBBER INC LED THE GROUP OF UNDERWRITERS 9302030159 930203 FINANCING BUSINESS GRAND CASINOS INC GRAND CASINOS INC MINNEAPOLIS SAID A UNIT RAISED 115 MILLION TO BUILD CASINOS IN MISSISSIPPI THE SALE OF SEVENYEAR 125 FIRST MORTGAGE NOTES THROUGH DONALDSON LUFKIN & JENRETTE AND LADENBURG THALMANN INCLUDES 13 MILLION DETACHABLE WARRANTS TO BUY GRAND CASINOS COMMON AT 19 A SHARE FOR FIVE YEARS FOR THE NOTE PURCHASERS THE UNDERWRITERS ALSO PURCHASED 700000 WARRANTS PROCEEDS WILL BE USED TO BUILD TWO CASINOS ON THE GULF COAST IN MISSISSIPPI THE COMPANY SAID 9302030158 930203 FINANCING BUSINESS SENSORMATIC ELECTRONICS CORP SENSORMATIC ELECTRONICS CORP DEERFIELD BEACH FLA SAID IT ISSUED 135 MILLION OF 10YEAR 821 SENIOR NOTES THROUGH A PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS THE COMPANY WHICH SELLS STORE SECURITY SYSTEMS SAID PROCEEDS WERE USED TO REPAY EXISTING DEBT INCLUDING 100 MILLION OF SHORTTERM BANK DEBT WERTHEIM SCHRODER & CO WAS THE PRINCIPAL PLACEMENT AGENT 9302030156 930203 HELPWANTED ADS STEADY IN DECEMBER EAST PICKS UP A BIT NEW YORK HELPWANTED ADVERTISING HELD STEADY IN DECEMBER REFLECTING A NEARLY YEARLONG TREND THE CONFERENCE BOARD REPORTED THE GROUP'S HELPWANTED ADVERTISING INDEX WHICH USES 1967 AS A BASE OF 100 STOOD AT 95 IN DECEMBER THE SAME LEVEL AS IN NOVEMBER A YEAR EARLIER THE INDEX WAS AT 90 THE FIGURES ARE BASED ON A SURVEY OF HELPWANTED ADVERTISING IN 51 MAJOR US NEWSPAPERS AD VOLUME HAS PROVEN TO BE SENSITIVE TO LABORMARKET CONDITIONS ADVERTISING ROSE ONLY SLIGHTLY IN DECEMBER FROM THE PREVIOUS SIX MONTHS SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN HE NOTED THAT WHILE THE UNEMPLOYMENT RATE DROPPED TO 73 IN DECEMBER FROM 77 SIX MONTHS EARLIER THE TOTAL LABOR FORCE ROSE BY ONLY 300000 THE UNEMPLOYMENT RATE ACTUALLY DECLINED BECAUSE MORE PEOPLE GAVE UP LOOKING FOR JOBS AND FEWER ENTERED THE LABOR FORCE ADVERTISING ROSE IN THREE OF THE SURVEY'S NINE REGIONS AFTER MONTHS OF SLUGGISHNESS THE MIDDLE ATLANTIC AND NEW ENGLAND REGIONS SAW SOME PICKUP IN HELPWANTED AD VOLUME THE MIDDLE ATLANTIC REGION INDEX ROSE TO 46 IN DECEMBER FROM 45 IN NOVEMBER AND 40 IN OCTOBER THE SOUTH ATLANTIC READING ROSE TO 103 IN DECEMBER FROM 102 IN NOVEMBER AND 96 IN OCTOBER DESPITE SCATTERED GAINS A SUBSTANTIAL RECOVERY HAS YET TO MATERIALIZE PARTLY DUE TO CONTINUED DECLINES IN AD VOLUME IN THE PACIFIC REGION THE CONFERENCE BOARD IS A NONPROFIT BUSINESSSUPPORTED RESEARCH ORGANIZATION 9302030155 930203 SALES INCREASED 85 IN JANUARY AT CHAINS DEPARTMENT STORES NEW YORK DEPARTMENTSTORE AND CHAINSTORE SALES INCREASED 85 IN JANUARY FROM A YEAR EARLIER ACCORDING TO THE JOHNSON REDBOOK SERVICE THE CONSUMER IS STILL OUT IN FORCE AND THE MOMENTUM SEEN AT CHRISTMAS HAS CARRIED OVER INTO JANUARY SURPRISINGLY WELL SAID STEVE MAROTTA AN ANALYST WITH THE SERVICE MR MAROTTA DID EXPRESS CONCERN THAT INCREASED RETAIL SPENDING IS OUTPACING GROWTH IN PERSONAL DISPOSABLE INCOME AND MUCH OF IT MAY BE DRIVEN BY CREDIT CARD PURCHASES HE REMAINS CAUTIOUSLY OPTIMISTIC THAT DEPARTMENTSTORE AND CHAINSTORE SALES WILL CONTINUE TO INCREASE BUT INCREASING DEBT COULD CAUSE CONSUMERS TO PULL BACK UNLESS DISPOSABLE INCOMES INCREASE THE JOHNSON REDBOOK SERVICE SURVEYS A REPRESENTATIVE SAMPLE OF DEPARTMENT DISCOUNT AND CHAIN STORES SALES FIGURES REPRESENT TOTAL SALES AS OPPOSED TO SAMESTORE SALES 9302030154 930203 INTERNATIONAL SONY TO PUT OFF WORK ON EUROPEAN CENTER DUE TO EC COMPLAINT A WALL STREET JOURNAL NEWS ROUNDUP SONY CORP SAID IT WILL POSTPONE FOR AT LEAST A YEAR CONSTRUCTION OF ITS EUROPEAN CENTER OFFICE IN BERLIN'S POTSDAMER PLATZ SONY ORIGINALLY PLANNED TO START BUILDING THIS YEAR BUT PERMISSION FROM THE CITY GOVERNMENT HAS BEEN DELAYED BECAUSE OF CLAIMS BY THE EUROPEAN COMMUNITY THAT THE JAPANESE COMPANY BOUGHT THE SITE BELOW MARKET PRICE THE PRICE HASN'T BEEN DISCLOSED BUT WHEN THE SALE WAS ANNOUNCED IN 1991 IT WAS ESTIMATED AT 102 MILLION MARKS 624 MILLION IF THE EC ORDERS ADDITIONAL PAYMENT FOR THE SITE OUR COMPANY HAS TO REVIEW TOTALLY THE ORIGINAL PLAN MEANING WITHDRAWAL OF THE PROJECT IS PROBABLE A SPOKESMAN FOR SONY'S BERLIN BRANCH SAID AS SET FORTH SONY'S PLAN FOR THE SITE IS AMBITIOUS THE LAND THE SIZE OF MORE THAN SEVEN FOOTBALL FIELDS WOULD HAVE THE ELECTRONIC GIANT'S EUROPEAN HEADQUARTERS AS WELL AS SHOPS RESTAURANTS AND A HOTEL 9302030153 930203 INTERNATIONAL FRANCE IS PREPARING TO BATTLE BRITAIN OVER FLIGHT OF JOBS ACROSS THE CHANNEL BY CRAIG FORMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON FRANCE AND BRITAIN ARE SQUARING OFF FOR A FIGHT OVER LABOR AND INDUSTRIAL POLICY EVEN AS THE EUROPEAN COMMUNITY TRIES TO PRESENT A UNITED FRONT IN A LOOMING TRADE SQUABBLE WITH THE US THE IMMEDIATE CAUSE OF THE EUROPEAN UPROAR IS THE DECISION IN THE PAST FEW DAYS BY SEVERAL BIG US AND OTHER MULTINATIONAL COMPANIES TO LAY OFF WORKERS IN HIGHCOST PROUNION FRANCE AND MOVE JOBS TO LOWERCOST SITES IN BRITAIN AND ELSEWHERE IN EUROPE THE SITUATION PITS FREEMARKET BRITAIN AGAINST MORE HEAVILY REGULATED FRANCE AND PROVIDES THE LATEST EVIDENCE OF THE STRAINS ON EC ECONOMIES AS THEY TEETER TOWARD RECESSION MAYTAG CORP'S HOOVER APPLIANCES UNIT IGNITED THE STORM LAST WEEK WHEN IT ANNOUNCED PLANS TO CLOSE A VACUUMCLEANER PLANT IN DIJON FRANCE WITH 600 JOB LOSSES AND TO TRANSFER PRODUCTION TO A PLANT NEAR GLASGOW SCOTLAND HOOVER'S SCOTTISH WORKERS ACCEPTED CHANGES IN WORK CONDITIONS IN RETURN FOR JOB GUARANTEES AND THE POSSIBLE CREATION OF 400 JOBS THE FRENCH UNIONS CALLED A STRIKE AND TOOK TO THE STREETS WITH PROTESTS HOOVER WORKERS FROM DIJON CROSSED THE CHANNEL AND IN A TELEVISED DEBATE ACCUSED THEIR SCOTTISH COLLEAGUES OF TAKING THEIR JOBS WE HAVE NOTHING TO BE ASHAMED OF COUNTERED A BRITISH UNION LEADER THE FRENCH OUTRAGE ESCALATED IN THE PAST FEW DAYS AS OTHER COMPANIES ANNOUNCED PLANS TO LAY OFF WORKERS IN FRANCE OR SHIFT JOBS ELSEWHERE IN EUROPE THE COMPANIES INCLUDE PAPERPRODUCTS COMPANIES KIMBERLYCLARK CORP OF THE US WHICH IS CUTTING JOBS IN FRANCE AND BRITAIN AND MOORE CORP OF CANADA WHICH PLANS TO REDUCE ITS FRENCH WORK FORCE BY A QUARTER MEANWHILE GERMAN CONSUMERELECTRONICS CONCERN GRUNDIG AG REPORTEDLY IS CONSIDERING SWITCHING A THOUSAND JOBS FROM FRANCE TO ECASPIRANT AUSTRIA WHILE PRINTMACHINERY MAKER ROCKWELL GRAPHIC SYSTEMS A UNIT OF ROCKWELL INTERNATIONAL CORP PLANS TO MOVE 110 JOBS TO BRITAIN FROM NANTES THE SOCIALIST GOVERNMENT OF FRENCH PRESIDENT FRANCOIS MITTERRAND HAMMERED BY THE COSTS OF KEEPING THE FRANC STRONG AND FACING AN UPHILL BATTLE IN MARCH ELECTIONS ACCUSES ITS EC NEIGHBORS OF SOCIAL DUMPING PARIS OFFICIALS ALSO CONTEND BRITAIN IS OFFERING UNFAIR INCENTIVES AND TAKING ADVANTAGE OF LOOSER LABOR LAWS AND LOWER WAGES TO LURE NEW JOBS FRANCE IS APPEALING TO THE EC COMMISSION IN BRUSSELS TO INTERVENE IN THE HOOVER CASE AND IT APPEARS TO HAVE AN ALLY IN EC COMMISSION PRESIDENT JACQUES DELORS HE URGED EC MINISTERS IN BRUSSELS MONDAY TO AVOID CROSSBORDER JOBPOACHING WHILE SAYING EUROPE NEEDS NEW SOCIAL POLICIES TO COMBAT RISING UNEMPLOYMENT THE BRITISH MEANWHILE ARE CLUCKING ABOUT THEIR SUCCESS IN ATTRACTING INVESTMENT DESPITE THE COUNTRY'S LONG RECESSION OTHERS RECOGNIZE THE VIRTUES OF BRITAIN PRIME MINISTER JOHN MAJOR HAS BEEN TELLING LOCAL AUDIENCES THAT'S WHY WE CONTINUE TO ATTRACT MORE INWARD INVESTMENT THAN ANY OTHER COUNTRY IN EUROPE INDEED HUNDREDS OF US JAPANESE AND OTHER COMPANIES HAVE INVESTED IN BRITAIN IN RECENT YEARS AS A LAUNCHING PAD FOR THE SINGLE EC MARKET BRITISH OFFICIALS SAY THE COUNTRY HAS BECOME A MAGNET FOR NEW INVESTMENT BECAUSE OF BRITAIN'S DECISION TO OPT OUT OF TOUGH NEW EC EMPLOYMENT RULES IN THE MAASTRICHT TREATY ON CLOSER EC UNION SENIOR OFFICIALS ALSO SAY THE INVESTMENTS AND JOB TRANSFERS VINDICATE BRITAIN'S DECISION TO WITHDRAW THE POUND FROM EUROPE'S EXCHANGE RATE MECHANISM AND TO DEVALUE IT BY ROUGHLY 20 AGAINST OTHER EC CURRENCIES WHICH MAKES BRITISH GOODS CHEAPER THE CURRENT EC SQUABBLE IS A DIRECT CONSEQUENCE OF STEPS ALREADY TAKEN IN THE 1992 PROGRAM TO CREATE A SINGLE MARKET OF 320 MILLION EC CONSUMERS AND OF THE EC'S SUBSEQUENT DISUNITY IN TRYING TO FIGURE OUT WHAT TO DO NEXT THE MAASTRICHT TREATY'S ATTEMPT TO GRAPPLE WITH ECWIDE STANDARDS ON SOCIAL POLICY PROVIDES AN ILLUSTRATION THE TREATY AN ATTEMPT TO GO BEYOND THE SINGLE MARKET TO AN EC WITH A SINGLE CURRENCY AND FOREIGN POLICY SPECIFIES THE DEVELOPMENT OF MINIMUM COMPULSORY EC STANDARDS FOR WORKING CONDITIONS AND HOURS BUT BRITAIN'S CONSERVATIVE GOVERNMENT SECURED A PROVISION TO OPT OUT OF THE SOCALLED SOCIAL CHAPTER SAYING THAT IT HADN'T SPENT A DECADE ROLLING BACK THE FRONTIERS OF SOCIALISM IN BRITAIN ONLY TO SEE THEM APPLIED BY EC BUREAUCRATS IN BRUSSELS THE UNIQUE BRITISH PROVISION CREATES PROBLEMS FOR ITS NEIGHBORS WITH BRITISH LABOR COSTS LOWER AND UNIONS WILLING TO CONCEDE BENEFITS TO GET JOB GUARANTEES THE CASE FOR INVESTING IN BRITAIN CAN SEEM STRONGER THAN IN HIGHERCOST LOCATIONS 9302030152 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE TAKING STOCK TURMOIL IN EUROPE'S FINANCIAL MARKETS WILL PRODUCE BOTH BIG WINNERS AND LOSERS BY GLENN WHITNEY PORTRAIT OF A STOCK TRADER IN 2003 JEANMARCO PETERMANN STRETCHES OUT ON A LOUNGE CHAIR AT HIS VILLA ALONG ALBANIA'S SUNDRENCHED ADRIATIC COAST HE SWITCHES ON HIS PALMTOP PERSONAL COMPUTER/CELLULAR PHONE TYPES IN A PASSWORD AND BEGINS PERUSING THE DAY'S NEWS ONE HEADLINE CATCHES HIS EYE THE EURO FED MAY BE PUSHING INTEREST RATES HIGHER HE DECIDES TO HEDGE HIS INVESTMENT POSITION IN EUROPEAN BANK CORP HE CHECKS A COMPUTER LIST OF THE LAST 30 TRADES IN EBC AND TYPES IN HIS OFFER TO BUY 50000 PUT OPTIONS AT 37425 ECUS PER OPTION A NANOSECOND LATER A MATCHING BID IS FOUND CONFIRMATION OF THE TRANSACTION POPS UP ON HIS SCREEN AND THE DETAILS ARE AUTOMATICALLY STORED IN HIS PERSONAL COMPUTER FARFETCHED PERHAPS NOT FINANCIAL PLAYERS ARE ALREADY GEARING UP FOR THE DAY WHEN EUROPE HAS A MULTINATION CENTRAL BANK A COMMON CURRENCY AND HARMONIZED REGULATORY AND TAX STRUCTURES MANY OF THE FINANCIAL PLAYERS MAKING PLANS FOR THE 21ST CENTURY EXPECT DRAMATIC GROWTH IN CROSSBORDER STOCK TRADING IN THE EUROPEAN CURRENCY UNIT BOND MARKET AND IN THE CREATION OF A DIZZYING ARRAY OF EQUITY AND FIXEDINCOME DERIVATIVE PRODUCTS ALONG THE WAY THERE WILL BE PLENTY OF WINNERS AND LOSERS NOTABLY IN THE AREAS OF FOREIGN EXCHANGE AND IN BOND TRADING AND UNDERWRITING CITIES THAT HAVE BEEN HEADQUARTERS FOR SUCH ACTIVITIES AS GOLD DEALING AND MONEY MANAGEMENT SINCE THE EARLY 1800S COULD FIND THEMSELVES VASTLY OUTGUNNED IN THE BROADER EUROPE EMPLOYEES WHO THOUGHT THEY HAD THE RIGHT MANAGEMENT AND COMMUNICATION TOOLS MIGHT FIND THEMSELVES ON THE STREET BY 2003 LOSING OUT TO THOSE WITH BETTER MATHEMATICS AND LANGUAGE TRAINING ONE KEY IN GAZING OUT ACROSS THIS 10YEAR EXPANSE WILL CERTAINLY BE HOW MUCH PROGRESS THE EUROPEAN COMMUNITY MAKES TOWARD MONETARY UNION MANY EXPERTS ARE SKEPTICAL THAT THE PROPOSED COMMON CURRENCY THE EUROPEAN CURRENCY UNIT OR ECU WILL REIGN SUPREME FROM DONEGAL TO DRESDEN BY 2003 BUT MOST EXPECT EUROPE TO BE VASTLY CLOSER TO THAT GOAL THAN AT PRESENT THIS IN TURN WILL MEAN SHARPLY REDUCED VOLATILITY AMONG MOST MAJOR EUROPEAN CURRENCIES AND THAT MEANS FEWER OPPORTUNITIES TO MAKE MONEY JUST AS VIRTUALLY NO ONE PROFITS THESE DAYS TRADING THE DUTCH GUILDER VS THE DEUTSCHE MARK BECAUSE THE GUILDER SO CLOSELY FOLLOWS THE MARK WITHIN 10 YEARS THE SAME IS LIKELY TO BE TRUE OF SUCH MAJOR EUROPEAN CURRENCIES AS THE BRITISH POUND THE FRENCH FRANC AND THE SWISS FRANC THE CONSEQUENCES ARE FARREACHING AND POTENTIALLY SEVERE THE EC COMMISSION HAS ESTIMATED THAT EUROPEAN MONETARY UNION COULD MEAN A LOSS OF FOREIGNEXCHANGE INCOME TO COMMERCIAL BANKS OF EIGHT BILLION TO 10 BILLION ECUS A YEAR THE EQUIVALENT OF ABOUT 96 BILLION TO 12 BILLION ANGUS HISLOP A PARTNER AT COOPERS & LYBRAND WHO HAS STUDIED THE MATTER THINKS IT IS ALMOST INEVITABLE THAT INVESTMENT BANKS WILL TAKE GREATER TRADING RISKS TO MAKE UP FOR LOST REVENUE AND THAT COULD LEAD TO CERTAIN DISASTERS AND EVEN COLLAPSES OF FINANCIAL FIRMS MOREOVER THE REDUCED VOLATILITY PROBABLY WON'T JUST AFFECT THOSE CURRENCIES THAT HAVE BEEN MERGED INTO A SINGLE UNIT ANOTHER SEVEN OR EIGHT COUNTRIES ON THE MARGINS OF THE EC WILL PROBABLY LINK THEIR CURRENCIES IN SOME WAY TO THE ECU IN ORDER TO FORM CLOSER COMMERCIAL RELATIONS SOME OF THE TRADING PROFITS WILL BE REPLACED BY TRADING IN CURRENCIES FROM COUNTRIES THAT PROBABLY WON'T BE EC MEMBERS BY 2003 SUCH AS RUSSIA UKRAINE AND POLAND AS WELL AS COUNTRIES ON EUROPE'S PERIPHERY THAT WILL HAVE MADE PROGRESS TOWARD CURRENCY CONVERTIBILITY INCLUDING TURKEY MOROCCO AND ALGERIA BUT PROFITS FROM TRADING THESE CURRENCIES WON'T COME CLOSE TO MAKING UP THE REVENUE THE ROUTE WILL STILL BE OPEN FOR LARGE FINANCIAL INSTITUTIONS AND SMALL NICHE PLAYERS SAYS NICK VEREY DEPUTY CHAIRMAN OF SG WARBURG SECURITIES IN LONDON BUT THE MIDDLE GROUND WILL BE FILLED WITH BOMB CRATERS THAT'S AN AREA TO BE AVOIDED AT ALL COSTS SOME OF THE LEADING CANDIDATES FOR EXTINCTION INCLUDE THE SOCALLED METOO PLAYERS IN EUROPE SUCH AS THE MANY MIDSIZE EUROPEAN JAPANESE AND US HOUSES THAT SET UP SHOP IN LONDON FRANKFURT AND PARIS OVER THE PAST 10 YEARS TO BUY AND SELL GOVERNMENT BONDS THE MOST AGILE OF THE LOT WILL FIND AN AREA IN WHICH TO SPECIALIZE ONE FERTILE PLACE MIGHT BE FIXEDINCOME INSTRUMENTS AND STOCK AND BOND DERIVATIVES DENOMINATED IN ECUS IN PART BECAUSE THERE AREN'T ANY COUNTRIES OR BANKS THAT NOW HAVE AN OVERWHELMING NATURAL ADVANTAGE BUT THE COMPETITION WILL BE FIERCE SEVERAL MAJOR FRENCH INSTITUTIONS HAVE BEEN WORKING HARD OVER THE PAST FEW YEARS TO DEVELOP EXPERTISE IN ECUS AND THEY HAVE BEEN HELPED BY THE FRENCH TREASURY'S ENTHUSIASM FOR ISSUING DEBT IN THE EUROCURRENCY THE INTENSE COMPETITION BETWEEN FINANCIAL CENTERS OVER THE PAST FIVE YEARS WILL PROBABLY DIE DOWN DURING THE NEXT DECADE AS ALSORANS LIKE AMSTERDAM ZURICH GENEVA VIENNA AND BRUSSELS FOCUS ON KEEPING THEIR DOMESTIC CLIENT BASES OR DROP OUT OF THE PICTURE ALTOGETHER THE VERY NOTION OF IDENTIFYING A MARKET WITHIN A PARTICULAR AREA IS LIKELY TO DIMINISH AS WELL RICHARD O'BRIEN CHIEF ECONOMIST AT AMERICAN EXPRESS BANK IN LONDON CALLS THE PHENOMENON THE END OF GEOGRAPHY MEANING THAT IT WILL MAKE LITTLE DIFFERENCE WHERE SOMEONE IS LOCATED EUROPE IS THE EXAMPLE PAR EXCELLENCE OF THE END OF GEOGRAPHY MR O'BRIEN SAYS UNLIKE IN THE REST OF THE WORLD THERE ARE STRONG POLITICAL FORCES BRINGING THE ECONOMIES TOGETHER WE'RE NOT SEEING ANYTHING OF THIS MAGNITUDE ANYWHERE ELSE ESPECIALLY NOT IN ASIA CENTRALIZED REGULATION IS ANOTHER THORNY ISSUE COMMON REGULATIONS ON INSIDER TRADING TAKEOVERS AND ACCOUNTING STANDARDS ARE WIDELY CONSIDERED TO BE AT LEAST A DECADE AWAY THE CREATION OF SOME KIND OF EUROPEAN SECURITIES EXCHANGE COMMISSION IS EVEN FURTHER DOWN THE ROAD AND THERE APPEARS TO BE LITTLE POLITICAL WILL TO GET THERE EVERYONE IN EUROPE RIGHT NOW IS CONCERNED WITH CARING FOR HIS OWN PATCH SAYS CHARLES GOODHART PROFESSOR OF FINANCE AT THE LONDON SCHOOL OF ECONOMICS WE STILL HAVE TO GET TO THE POINT OF MUTUAL RECOGNITION OF REGULATIONS BUT SOME PROGRESS WILL CERTAINLY BE MADE TOWARD COMMON STANDARDS FOR EXAMPLE THE EC'S FINANCIALSERVICES ACT DUE TO TAKE EFFECT BY 1996 GUARANTEES RECIPROCITY THROUGHOUT THE EC FOR ANY FIRM REGISTERED WITH ANY COUNTRY THAT WILL PROBABLY MEAN MORE BANKS AND MONEY MANAGERS HAWKING THEIR SERVICES ACROSS THE CONTINENT AND SHAKING UP THE SLEEPY WORLD OF PENSION FUNDS AND INSTITUTIONAL INVESTMENT IN FACT NOW THAT THE FIRST WAVE OF AMBITIOUS US AND UK FUND MANAGERS HAS WASHED ONTO THE CONTINENT MANAGERS ARE INCREASINGLY EXPECTED TO BEAT STOCK AND BOND INDEXES SO THEY ARE FORCED TO INVEST MORE AGGRESSIVELY THIS AGGRESSIVENESS WILL NO DOUBT ACCELERATE THE MOVE INTO EQUITIES OF THE PAST SEVERAL YEARS ANOTHER REASON FOR THE ACCELERATION MANY EUROPEAN CORPORATIONS WANT TO MAKE THEIR SHARE OWNERSHIP AS GEOGRAPHICALLY DIVERSE AS THEIR SALES ARE NOW THEY SHOULD FIND PLENTY OF EAGER BUYERS LARGE US AND JAPANESE INSTITUTIONS THAT BEGAN DIPPING THEIR TOES IN UK GERMAN SWISS AND FRENCH MARKETS IN THE EARLY 1980S HAVE BECOME COMFORTABLE ENOUGH TO BEGIN BRANCHING OUT MOST LARGE BROKERAGE HOUSES ARE EXPANDING INTO THE SECOND AND THIRDTIER MARKETS OF EUROPE ESTABLISHING OFFICES AND SETTING UP MODEST EQUITYRESEARCH CAPABILITIES BY THE YEAR 2003 MARKETS IN LISBON ATHENS ISTANBUL AND POSSIBLY WARSAW AND BUDAPEST ARE EXPECTED TO BE LIQUID AND PROFESSIONAL ENOUGH TO ATTRACT THE MAINSTREAM INSTITUTIONAL INVESTORS FROM EUROPE THE US AND JAPAN SOME SEE AN EVEN MORE FUNDAMENTAL SHIFT IN THE KIND OF ACTIVITIES INVESTMENT BANKS WILL BE ENGAGED IN BY THE NEXT CENTURY WE ARE IN A METAPHYSICAL INDUSTRY SAYS RUDOLFO BOGNI CHIEF EXECUTIVE OF SWISS BANK CORP IN LONDON WE DON'T TRADE ANYTHING THAT IS PHYSICAL IN NATURE SO WE ARE DEALING WITH VALUE SETS WHICH ARE MONEY AND TIME MR BOGNI THINKS THE ONLY INVESTMENT HOUSES THAT WILL SUCCEED ARE ONES THAT BEST HELP INVESTORS MANAGE RISK NOT THOSE THAT CARRY OUT TRANSACTIONS AT THE LOWEST PRICE AND MUCH OF RISK MANAGEMENT WILL RELY ON THE USE OF DERIVATIVE INSTRUMENTS THE NAME OF THE GAME IS NOT PUSHING PAPER ANYMORE HE SAYS THOSE WHO STILL TRY TO WILL BE OUT OF BUSINESS THE INCREASING IMPORTANCE PUT ON DERIVATIVES MEANS THAT THE SUCCESSFUL TRADER OF THE 21ST CENTURY WILL HAVE STUDIED MATHEMATICS AND OTHER ABSTRACT SCIENCES FOR EXAMPLE SWISS BANK CORP HAS ALREADY BEGUN A PROGRAM DUBBED VISION 2000 THROUGH WHICH IT IS ESCHEWING MBAS AND INCREASINGLY HIRING GRADUATES WITH PHYSICS AND ENGINEERING DEGREES MR PETERMANN ON THE ALBANIAN COAST FOR EXAMPLE MAY WELL BE A DISILLUSIONED PHYSICIST WHO FINDS WORKING IN EUROPE'S FINANCIAL MARKETS MORE PROFITABLE AND FAR LESS STRESSFUL MR WHITNEY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9302030151 930203 TECHNOLOGY BRIEF TEXAS INSTRUMENTS INC IBM AND SEARS PARTNERSHIP TO JOINTLY MARKET PRODUCT TEXAS INSTRUMENTS INC WILL JOINTLY MARKET EDI GATEWAY AN ELECTRONIC DATA INTERCHANGE WITH ADVANTIS A NETWORKING TECHNOLOGY PARTNERSHIP FORMED IN DECEMBER BY INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO THE PRODUCT DEVELOPED BY DALLASBASED TI ALLOWS COMPUTERS TO EXCHANGE INFORMATION BETWEEN COMPANIES ANSWERING CALLS OR AUTOMATICALLY RETRIEVING ELECTRONIC DOCUMENTS EDI GATEWAY CAN STORE INFORMATION AND FORWARD IT THIS CONTRACT REPRESENTS THE FIRST STEP FOR TWO OF THE BESTKNOWN TECHNOLOGY COMPANIES TO TEAM TOGETHER SAID RICK SHEPHERD MANAGER OF TI'S ENTERPRISE SYSTEMS BUSINESS UNIT 9302030150 930203 TECHNOLOGY COMPAQ TO INTENSIFY PC BATTLE IN JAPAN BY CUTTING PRICES OFFERING SERVICE PLAN BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO COMPAQ COMPUTER CORP IS EXPECTED TO FIRE THE LATEST SHOT IN JAPAN'S PERSONALCOMPUTER PRICE WAR TODAY BY ANNOUNCING PLANS TO CUT ITS PC PRICES 10 TO 20 AND TO OUTDO THE SERVICE GUARANTEES OFFERED BY ITS CHIEF RIVAL COMPAQ IS DRAWING A BEAD ON BOTH DELL COMPUTER CORP WHICH MADE A FLASHY ENTRANCE INTO THE JAPANESE MARKET TWO WEEKS AGO AND NEC CORP OF JAPAN WHICH CURRENTLY RULES ABOUT HALF THE JAPANESE PC MARKET ALL THREE COMPANIES TOGETHER WITH INTERNATIONAL BUSINESS MACHINES CORP ARE LOCKED IN A CUTTHROAT BATTLE FOR A SHARE OF THE JAPANESE PC MARKET THE WORLD'S SECONDLARGEST AFTER THE US DELL WHICH TOUTS THE LOW OVERHEAD COST OF ITS DIRECTSALES MARKETING APPROACH CURRENTLY OFFERS THE LOWESTPRICED PCS IN JAPAN NEC MEANWHILE HAS LONG EMPHASIZED ITS COMMITMENT TO AFTERSALE SERVICE AS A DRAWING POINT FOR JAPANESE PC CUSTOMERS WHO ARE KNOWN FOR THEIR INSISTENCE ON RECEIVING CLOSE PERSONAL ATTENTION AFTER BUYING THEIR COMPUTERS COMPAQ PLANS TO CHALLENGE BOTH PC MAKERS WHERE THEY ARE STRONGEST THE COMPANY WILL OFFER ITS CUSTOMERS THREEYEAR SERVICE WARRANTIES FREE OF CHARGE SAID MASARU MURAI PRESIDENT OF COMPAQ KK THE COMPUTER MAKER'S JAPANESE SUBSIDIARY THE COMPANY ALSO WILL SEND REPAIR PERSONNEL TO WORK ON CUSTOMERS' MACHINES AT THEIR HOMES AND OFFICES ALSO FREE OF CHARGE MR MURAI ADDED NEC OFFERS ONLY A ONEYEAR WARRANTY ON ITS PCS A COMPANY SPOKESMAN SAID ADDING THAT CUSTOMERS MUST BRING THEIR PCS TO A SERVICE DEPOT FOR REPAIR NEC WILL SEND SERVICE PERSONNEL ONLY TO THE HOMES AND OFFICES OF CUSTOMERS WHO HAVE PURCHASED A SERVICE CONTRACT COMPAQ'S PLANNED PRICE CUTS WON'T TAKE PRICES DOWN TO THOSE OF DELL COMPUTERS IN FACT THEY AREN'T LIKELY TO AFFECT COMPAQ'S LOWESTPRICED MACHINES AT ALL MR MURAI SAID INSTEAD THE CUTS WILL AFFECT MAINLY COMPAQ'S PCS WITH HIGHCAPACITY HARDDISK DRIVES IN AN ATTEMPT TO MAKE THE HIGHEREND MACHINES MORE AFFORDABLE WHILE THE MOVE LEAVES DELL WITH THE CHEAPEST PCS IN JAPAN MR MURAI SUGGESTED THAT COMPAQ'S PRICE CUTS WILL HELP NEUTRALIZE DELL'S PRICE ADVANTAGE I HAVE A DEGREE OF UNCERTAINTY ABOUT WHETHER DELL'S STYLE OF BUSINESS WILL SUCCEED IN JAPAN HE SAID SEPARATELY FUJITSU LTD ANNOUNCED A PRICE CUT OF ABOUT 50 ON ITS FMR SERIES OF DESKTOP PCS FUJITSU'S PCS HOWEVER AREN'T COMPATIBLE WITH THOSE OF EITHER NEC OR THE IBM CLONEMAKERS ANALYSTS GENERALLY CONSIDER THE COMPANY A MINOR PRESENCE IN THE JAPANESE PC MARKET BECAUSE ITS PC SALES ARE USUALLY LINKED TO THOSE OF FUJITSU'S MAINFRAME COMPUTERS 9302030149 930203 INTERNATIONAL EC THREATENS TRADE SANCTIONS TO COUNTER US MINISTERS WARN CLINTON THAT A TOUGH STANCE COULD CHILL RECOVERY BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS EUROPEAN COMMUNITY TRADE MINISTERS WARNED THAT THE CLINTON ADMINISTRATION COULD SNUFF OUT WORLD ECONOMIC RECOVERY BY BEING TOO TOUGH IN TRADE DISPUTES HAULING OUT THE USUAL SPECTER OF TITFORTAT SANCTIONS FRENCH TRADE MINISTER BRUNO DURIEUX SAID THE EC COULD EASILY RETALIATE AGAINST THREATENED US PENALTIES BY STRENGTHENING RULES THAT FAVOR EUROPEAN SUPPLIERS FOR TELECOMMUNICATIONS AND OTHER PUBLICUTILITY CONTRACTS BUT MR DURIEUX AND OTHER MINISTERS WHO MET AT EC HEADQUARTERS IN BRUSSELS REFRAINED FROM ANNOUNCING IMMEDIATE STEPS TO COUNTER TWO US MOVES OVER THE PAST WEEK PRELIMINARY ANTIDUMPING DUTIES IMPOSED ON STEEL IMPORTS AND A THREAT TO DISQUALIFY EC COMPANIES FROM SOME US GOVERNMENT CONTRACTS THE MINISTERS SAID THEY WANT TO RESOLVE THE DISPUTES THROUGH NEGOTIATIONS THE MOST IMPORTANT THING IS TO TELL THE AMERICANS THEY'RE ON THE WRONG TRACK SAID DANISH FOREIGN MINISTER NIELS HELVEG PETERSEN WHO PRESIDED OVER THE MEETING THE US MOVES ARE INTERPRETED HERE AS A SIGN THAT THE CLINTON ADMINISTRATION WILL BE MORE PROTECTIONIST THAN THE BUSH TEAM WHAT WE ARE TALKING ABOUT ISN'T JUST A SMALL TRADE DISPUTE MR HELVEG PETERSEN SAID AT A NEWS CONFERENCE WHAT WE ARE TALKING ABOUT IS ABSOLUTELY THE WRONG SIGNAL TO THE WORLD ECONOMY THE DANISH MINISTER SAID TRADE WARS AND THREATS OF TRADE WARS ENDANGER ECONOMIC RECOVERY WORLDWIDE BY DEFLATING BUSINESS CONFIDENCE FRANCE'S MR DURIEUX ADDED I'M NOT SURE WHETHER THE CLINTON ADMINISTRATION REALIZES THE CHAIN OF EVENTS IT RISKS SETTING OFF IN WORLD TRADE IN WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US REMAINED COMMITTED TO OPENING MARKETS AND EXPANDING TRADE HE ADDED THAT REACTING TO CLEAR AND DELIBERATE DISCRIMINATION ON THE PART OF THE EC IS FULLY CONSISTENT WITH THAT COMMITMENT THE US SAID MONDAY IT WOULD BAR EC COMPANIES FROM RECEIVING FEDERAL GOVERNMENT CONTRACTS FOR TELECOMMUNICATIONS AND POWERGENERATION EQUIPMENT AND A WIDE VARIETY OF SERVICES EFFECTIVE MARCH 22 UNLESS THE EC AMENDS ITS SOCALLED UTILITIES DIRECTIVE WHICH TOOK EFFECT JAN 1 THE DIRECTIVE FAVORS EUROPEAN SUPPLIERS IN CONTRACT BIDDING FOR POWERGENERATION AND TELECOM EQUIPMENT IT ALLOWS REJECTION OF BIDS WITH LESS THAN 50 EUROPEAN CONTENT AND REQUIRES THAT EUROPEAN BIDDERS BE CHOSEN UNLESS THEIR BIDS ARE MORE THAN 3 ABOVE THOSE OF NONEC RIVALS IF THE US CARRIES OUT ITS THREATENED SANCTIONS MR DURIEUX SUGGESTED THE EC COULD INCREASE THE EUROPEAN BIDDERS' ADVANTAGE WE COULD GO TO FIVE SIX SEVEN PERCENT HE TOLD REPORTERS EC OFFICIALS ARGUE THAT VARIOUS BUY AMERICAN PROVISIONS IN US FEDERAL AND STATE LAW ARE EVEN MORE DISCRIMINATORY THAN THE EUROPEAN DIRECTIVE THE US COMPLAINT IS A CASE OF THE POT CALLING THE KETTLE BLACK SAID TIM SAINSBURY BRITAIN'S INDUSTRY MINISTER SIR LEON BRITTAN THE EC'S TRADE COMMISSIONER WHO IS DUE TO HOLD TALKS WITH TRADE OFFICIALS IN WASHINGTON FEB 11 HELD OUT HOPE FOR DEFUSING THE CONFRONTATION I UNDERSTAND THE TEMPTATION TO FLEX ONE'S MUSCLES IF ONE IS NEW AND PLAYING TO A DOMESTIC AUDIENCE HE SAID IN A REFERENCE TO PRESIDENT CLINTON BUT THE EC WILL NOT ALLOW ITSELF TO BE BULLIED SIR LEON SAID SIR LEON IS EXPECTED TO ASK MR KANTOR TO PRESS CONGRESS IN THE NEXT FEW MONTHS TO EXTEND SOCALLED FASTTRACK NEGOTIATING AUTHORITY WHICH EXPIRES MARCH 2 AN EC OFFICIAL SAID FASTTRACK IS CONSIDERED CRUCIAL TO TRADE NEGOTIATIONS BECAUSE CONGRESS COMMITS ITSELF TO VOTE YESORNO ON A TRADE PACT BUT NOT TO TRY TO REWRITE THE PACT THROUGH AMENDMENTS BUT THE CLINTON ADMINISTRATION HAS SHOWN NO EVIDENCE THAT IT CONSIDERS QUICK EXTENSION OF FASTTRACK TO BE A PRIORITY INSTEAD IT PLANS TO PUSH IN CONGRESS A SERIES OF BILLS TO SPUR ECONOMIC GROWTH DOMESTICALLY AND CUT THE FEDERAL BUDGET DEFICIT 9302030148 930203 WALGREEN SALES GAIN 12 DEERFIELD ILL WALGREEN CO SAID ITS JANUARY SALES ROSE 12 TO 6638 MILLION FROM 5952 MILLION A YEAR EARLIER SAMESTORE SALES MEANING FOR STORES OPEN AT LEAST A YEAR ROSE 74 THE DRUGSTORE COMPANY SAID 9302030147 930203 INTELLICALL TO SETTLE CLASSACTION LAWSUIT ON IMPROPER PRACTICES DALLAS INTELLICALL INC SAID IT AGREED TO SETTLE A CLASSACTION LAWSUIT RELATING TO THE FAILURE OF FORMER MANAGEMENT TO PROMPTLY DISCLOSE LOAN DEFAULTS AND IMPROPER SALES PRACTICES INTELLICALL SAID IT DIDN'T ADMIT ANY WRONGDOING IN THE SETTLEMENT TERMS OF THE AGREEMENT CALL FOR INTELLICALL TO PAY 1 MILLION IN CASH AND ISSUE A 900000 NOTE PAYABLE SEPT 30 1994 AND 61 MILLION OF NEW COMPANY STOCK INTELLICALL AND SOME OFFICERS WERE SUED BY SHAREHOLDERS IN 1991 FOLLOWING DISCLOSURES THAT ROCKED THE DALLAS PHONE MAKER AND PROVIDER OF PAY PHONE SERVICES FOUR EXECUTIVES WERE SUSPENDED FOR FAILING TO DISCLOSE FOR MORE THAN A YEAR THAT THE FIRM WAS IN DEFAULT ON ITS LOAN AGREEMENTS THE COMPANY EVENTUALLY REVEALED THAT IT WAS IN DEFAULT ON ABOUT 55 MILLION OF DEBT AND HAD TO RESTATE 1991 RESULTS TO REFLECT THAT LONGTERM DEBT AS A CURRENT LIABILITY THE FASTGROWING COMPANY HAD ALSO BEEN ACCUSED OF IMPROPERLY BOOKING INVENTORY STORED AT WAREHOUSES AS REVENUE BUT INTELLICALL SAID A SPECIAL INVESTIGATION FOUND NO WRONGDOING THE COMPANY HAD A LOT OF PROBLEMS AND I THINK IT HAS DONE A LOT TO GET OUT OF THIS MIRE SAID ANALYST ERIC ZIMITS OF VOLPE WELTY & CO IN SAN FRANCISCO I THINK THIS CLOSES THE BOOK ON A LOT OF PROBLEMS AT INTELLICALL INTELLICALL SAID THE NUMBER OF NEW SHARES ISSUED IN THE SETTLEMENT WOULD RANGE FROM 750000 TO 1340000 ON SEPT 30 INTELLICALL HAD 67 MILLION SHARES OUTSTANDING CHAIRMAN WILLIAM O HUNT SAID HE BELIEVED THE DILUTION SHOULD BE ACCEPTABLE TO EXISTING SHAREHOLDERS 9302030146 930203 COAL MINERS STRIKE PEABODY IN JOB SECURITY DISPUTE HUNTINGTON WVA AP AS MANY AS 7000 MINERS IN APPALACHIA AND THE MIDWEST WENT ON STRIKE YESTERDAY AT THE NATION'S LARGEST COAL PRODUCER IN A DISPUTE OVER JOB SECURITY MEMBERS OF THE UNITED MINE WORKERS FAILED TO REPORT FOR THE MIDNIGHT SHIFT AT PEABODY COAL CO AND EASTERN ASSOCIATED COAL CORP WHICH OPERATE MINES IN EIGHT STATES BOTH ARE SUBSIDIARIES OF PEABODY HOLDING CO OF ST LOUIS A UNIT OF HANSON PLC OF THE UK THE UNION HAS ACCUSED SOME COAL OPERATORS OF ESTABLISHING NONUNION SUBSIDIARIES TO COMPETE WITH THEIR UNION MINES JOE KLINGL DIRECTOR OF PERSONNEL FOR PEABODY COAL IN HENDERSON KY REFUSED TO DISCUSS THE COMPANY'S PLANS UMW PRESIDENT RICHARD TRUMKA ANNOUNCED THE STRIKE HOURS BEFORE THE MIDNIGHT EXPIRATION OF THE UNION'S CONTRACT WITH THE BITUMINOUS COAL OPERATORS ASSOCIATION WHICH REPRESENTS 12 OF THE NATION'S LARGEST PRODUCERS THE AGREEMENT NEGOTIATED IN 1988 COVERS MORE THAN 60000 MINERS AND ABOUT 150000 RETIREES AT THIS TIME OUR STRIKE IS LIMITED ONLY TO PEABODY MR TRUMKA SAID IF WHEN AND HOW THIS STRIKE EXPANDS DEPENDS ENTIRELY ON WHETHER THE BCOA COMPANIES ARE PREPARED TO BARGAIN NO TALKS WERE SCHEDULED 9302030145 930203 AMERICAN AIR TRAFFIC RISES 11 FORT WORTH TEXAS AMERICAN AIRLINES THE PRINCIPAL SUBSIDIARY OF AMR CORP SAID ITS JANUARY TRAFFIC ROSE 11 THE AIRLINE FLEW 77 BILLION REVENUE PASSENGER MILES COMPARED WITH 69 BILLION IN JANUARY LAST YEAR A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED INCREASED SLIGHTLY TO 571 FROM 562 9302030144 930203 DUKE POWER UNIT'S VENTURE CHARLOTTE NC DUKE ENERGY CORP A UNIT OF CHARLOTTEBASED DUKE POWER CO SAID IT AGREED TO BUY 25 MILLION OF PREFERRED STOCK OF J MAKOWSKI CO AS PART OF A STRATEGIC ALLIANCE WITH THE BOSTONBASED DEVELOPER OF ELECTRIC PLANTS DUKE ENERGY SAID IT ALSO AGREED TO PROVIDE A 152 MILLION LETTER OF CREDIT TO SUPPORT THE CLOSELY HELD BOSTON COMPANY'S CONTINUING CONSTRUCTION OF A GASFIRED COGENERATION PLANT IN SELKIRK NY DUKE ENERGY SAID THE TWO COMPANIES WILL PURSUE JOINT DEVELOPMENT OF ADDITIONAL PLANTS IN THE US AND ABROAD 9302030143 930203 STERLING SOFTWARE REDEEMS DEBT THE REDEMPTION DATE IS MARCH 4 FOR THE BONDS REPRESENTING 526 MILLION IN PRINCIPAL AMOUNT THE RIGHT TO CONVERT THE BONDS INTO COMMON STOCK AT A PRICE OF 2160 A SHARE WILL EXPIRE ON FEB 17 STERLING SOFTWARE SPECIALIZES IN SYSTEMS SOFTWARE PRODUCTS AND SERVICES FOR THE FEDERAL GOVERNMENT 9302030142 930203 AETNA WILL TAKE A CHARGE AND POST LOSS FOR 4TH PERIOD BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL AETNA LIFE & CASUALTY CORP WILL TAKE A 180 MILLION FOURTHQUARTER CHARGE TO BOOST RESERVES FOR ASBESTOS AND ENVIRONMENTAL CLAIMS RESULTING IN A LOSS FOR THE PERIOD THE ANNOUNCEMENT WHICH SURPRISED ANALYSTS AND CAME AFTER THE MARKETS CLOSED MEANS AETNA WILL POST A FOURTHQUARTER LOSS ON CONTINUING OPERATIONS OF 155 MILLION TO 165 MILLION DUE TO THE CHARGE AND WEAK RESULTS IN ITS COMMERCIAL PROPERTY AND CASUALTY BUSINESS CONTINUING OPERATIONS EXCLUDE CAPITAL GAINS AND EFFECTS FROM ACCOUNTING CHANGES AETNA WILL REPORT EARNINGS NEXT WEDNESDAY ANALYSTS HAD EXPECTED THE HARTFORD CONN COMPANY TO EARN ABOUT 100 MILLION OR 1 A SHARE IN THE PERIOD SOME 100 MILLION OF THE RESERVE ADDITION RELATES SPECIFICALLY TO ASBESTOS AND WHAT AETNA SAID WERE DEVELOPMENTS CONCERNING THE PRINCETONBASED CENTER FOR CLAIMS RESOLUTION WHICH IS A MECHANISM CREATED BY 20 FORMER ASBESTOS MAKERS AND THEIR INSURERS TO PAY CLAIMS OF PEOPLE INJURED BY ASBESTOS LAST MONTH THE GROUP ANNOUNCED AN AGREEMENT TO PAY 1 BILLION TO RESOLVE OUTSIDE THE COURTS ANY NEW ASBESTOS CLAIMS THE AGREEMENT IF APPROVED BY THE COURTS WOULD BE A MAJOR STEP TOWARD ENDING THE ASBESTOS LITIGATION CRISIS THE GROUP HAS ALSO OFFERED TO SETTLE FOR ANOTHER 1 BILLION ALL 76000 PENDING LAWSUITS AGAINST ITS MEMBERS WE VIEW THE RECENT CCR DEVELOPMENTS POSITIVELY BECAUSE OF THE POTENTIAL FOR EFFICIENT RESOLUTION OF TENS OF THOUSANDS OF CLAIMS SAID AETNA CHAIRMAN RONALD COMPTON OTHER LARGE INSURERS ALSO HAVE SIGNIFICANT ASBESTOS EXPOSURE AETNA ADDED 80 MILLION TO RESERVES TO COVER ENVIRONMENTAL CLAIMS THE INCREASE REFLECTS A SURGE IN THE NUMBER OF ENVIRONMENTAL CASES AETNA MUST RESOLVE A FINAL FACTOR DRIVING DOWN AETNA'S EARNINGS FOR THE PERIOD IS THE PRICE WAR REDUCING PROFITS IN COMMERCIAL PROPERTY AND CASUALTY INSURANCE BUSINESS AS WELL AS RESERVE ADDITIONS FOR ITS CASUALTY LINES ON THE NEW YORK STOCK EXCHANGE YESTERDAY AETNA CLOSED AT 52125 DOWN 125 CENTS ANALYSTS ESTIMATE THE PROPERTY AND CASUALTY INDUSTRY NEEDS TO ADD AS MUCH AS 40 BILLION TO ITS LOSS RESERVES WHICH WOULD REDUCE THE INDUSTRY'S CAPITAL BY 25 THEY SAID AETNA'S RESERVE ADDITIONS WHICH COME THREE MONTHS AFTER LARGE PROVISIONS TAKEN BY ITT HARTFORD THE INSURANCE UNIT OF ITT CORP MIGHT ENCOURAGE OTHER INSURERS TO TAKE SIMILAR STEPS I'M SURE AETNA ISN'T THE ONLY COMPANY THAT NEEDS TO DO THIS SORT OF THING SAID ANALYST ALICE CORNISH OF NORTHINGTON PARTNERS 9302030141 930203 INFINITY BROADCASTING ACQUISITION NEW YORK INFINITY BROADCASTING CORP SAID IT COMPLETED ITS ACQUISITION OF THREE RADIO STATIONS FROM COOK INLET RADIO PARTNERS FOR 100 MILLION THE THREE STATIONS ARE CHICAGO'S COUNTRY MUSIC STATION WUSNFM BOSTON'S CLASSIC ROCK WXLXFM AND ATLANTA'S CLASSIC ROCK WZGCFM INFINITY SAID THE ACQUISITION WAS FINANCED BY BANK BORROWINGS COOK INLET'S OWNERS INCLUDE COOK INLET REGION INC AN ANCHORAGE ALASKA ENTERPRISE THAT IS OWNED BY 6500 ESKIMOS 9302030140 930203 INTERNATIONAL BANCO BILBAO VIZCAYA EARNINGS MADRID BANCO BILBAO VIZCAYA ANNOUNCED A 20 FALL IN NET INCOME FOR 1992 BUT SAID ITS OPERATING PROFITS WERE SUBSTANTIALLY STRONGER THANKS IN PART TO A CLAMPDOWN ON COSTS NET FELL TO 811 BILLION PESETAS 6979 MILLION IN 1992 FROM 1012 BILLION PESETAS IN 1991 REFLECTING LOWER EXTRAORDINARY GAINS ON THE SALE OF ASSETS DOWN FROM 704 BILLION PESETAS IN 1991 TO 402 BILLION PESETAS IN 1992 CHAIRMAN EMILIO YBARRA SAID THAT 1992 HAD BEEN THE MOST DIFFICULT YEAR FOR A DECADE FOR SPANISH BANKS AND HE WARNED THAT 1993 WOULD NOT BE EASY BUT HE EXPRESSED CONFIDENCE THAT BBV SPAIN'S SECONDLARGEST COMMERCIAL BANK IN ASSET TERMS AND LEADER BY MARKET CAPITALIZATION WOULD CONTINUE TO SHOW HEALTHY INCREASES IN OPERATING PROFITS 9302030139 930203 CANADIAN BANKRUPTCIES UP OTTAWA CANADIAN BANKRUPTCIES TOTALED 5752 IN DECEMBER LITTLE CHANGED FROM 5745 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID IN 1992 BANKRUPTCIES TOTALED 76139 A 05 INCREASE FROM 75773 A YEAR EARLIER THE 1992 TOTAL INCLUDED 14317 BUSINESS BANKRUPTCIES A 61 INCREASE FROM 13496 IN 1991 AND 61822 PERSONAL BANKRUPTCIES A 07 DECLINE FROM 62277 A YEAR EARLIER 9302030138 930203 TECHNOLOGY IBM UNVEILS CHIPBASED SUPERCOMPUTER AND OTHER UNITS TIED TO RISC PROCESSORS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP UNVEILED ITS FIRST MICROPROCESSORBASED SUPERCOMPUTER THE SP1 AND A HOST OF OTHER MACHINES BASED ON THE SPEEDY CHIPS IN ITS POPULAR WORKSTATION COMPUTERS THE INTRODUCTIONS EMPHASIZED IBM'S GROWING AMBITIONS FOR ITS WORKSTATION TECHNOLOGY KNOWN AS REDUCEDINSTRUCTIONSET COMPUTING OR RISC EVEN AS ITS MAINSTAY BUSINESS IN BIG MAINFRAME COMPUTERS DETERIORATES TO BOLSTER ITS PLANS FOR RISC IBM'S NEWLY PROFITABLE WORKSTATION DIVISION ANNOUNCED ALLIANCES WITH THE IBM UNITS THAT DEVELOP MAINFRAMES AND PERSONAL COMPUTERS TOGETHER THE INDEPENDENT UNITS WILL COOPERATE TO BUILD A WIDE VARIETY OF RISCBASED MACHINES IN AN INTERVIEW IBM WORKSTATION CHIEF BILL FILIP SAID HIS VISION OF RISC TECHNOLOGY NOW STRETCHES FROM SUPERCOMPUTERS TO HANDHELD COMMUNICATORS THE ENTIRE SPAN OF IBM PRODUCTS RISC MICROPROCESSORS WILL BE THE PRINCIPAL TECHNOLOGY BASE FOR ALL COMPUTER SYSTEMS BY THE END OF THIS DECADE HE ASSERTED RISC CHIPS WHICH ARE NOW FOUND MOSTLY IN WORKSTATIONS USED BY SCIENTISTS AND ENGINEERS GAIN THEIR COMPUTING SPEED BY SIMPLIFYING CERTAIN OPERATIONS THEY ARE SOMEWHAT DIFFERENT FROM THE MORECOMPLEX INTEL CORP CHIPS USED AS THE BRAINS OF MOST PCS AND THEY'RE FAR DIFFERENT FROM THE OUTDATED CIRCUITS USED IN CURRENT MAINFRAMES WHILE SLIGHTLY MORE AGGRESSIVE THAN USUAL MR FILIP'S CLAIMS DOVETAILED WITH PREVIOUS STATEMENTS AND STRATEGIC MOVES BY IBM OFFICIALS ON THE LOW END AN 18MONTHOLD ALLIANCE WITH MOTOROLA INC ALREADY IS PRODUCING NEW RISC CHIPS THAT WILL SOON APPEAR IN DESKTOP COMPUTERS FROM IBM AS WELL AS FROM APPLE COMPUTER INC IBM HAS SAID FUTURE CHIPS FROM THE ALLIANCE MIGHT BE SUITABLE FOR HANDHELD DEVICES ON THE HIGH END DEVELOPMENT OF THE NEW CABINETSIZED SP1 SUPERCOMPUTER WAS ANNOUNCED A YEAR AGO AND A MODEL WAS DEMONSTRATED LATE LAST YEAR THE RISCBASED SP1 INITIALLY IS ENVISIONED AS A MACHINE FOR SCIENTISTS AND ENGINEERS IBM SAID BUT IN A DECEMBER INTERVIEW NICK DONOFRIO IBM'S MAINFRAME CHIEF SAID HE WOULD COOPERATE WITH MR FILIP'S UNIT TO PRODUCE ADDITIONAL SUPERCOMPUTERS DESIGNED TO HANDLE COMMERCIAL APPLICATIONS POSSIBLY REPLACING SOME MAINFRAME BUSINESS YESTERDAY'S ANNOUNCEMENT FLESHED OUT THAT PICTURE BY FORMALIZING THE MAINFRAMEWORKSTATION COOPERATION MR FILIP SAID HE EXPECTS THAT COMMERCIAL VERSIONS OF IBM'S SUPERCOMPUTER TECHNOLOGY WHICH LINKS MANY RISC CHIPS SO THEY COOPERATE IN A PARALLEL PROCESSING SYSTEM EVENTUALLY WILL GARNER MOST OF THE NEW BUSINESS FROM FIRSTTIME BUYERS OF LARGE SYSTEMS MADE BY IBM THIS WOULD PIT IBM'S SUPERCOMPUTERS WHICH ARE DESIGNED TO WORK EASILY WITH THE COMPANY'S MAINFRAMES AGAINST PARALLELPROCESSING MACHINES FROM SUCH VENDORS AS HEWLETTPACKARD CO AND THE NCR UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO BY CONTRAST IBM EXPECTS MANY CURRENT LARGESYSTEM CUSTOMERS TO OPT FOR ANOTHER PARALLELPROCESSING MACHINE BASED ON ITS MAINFRAME TECHNOLOGY IN DECEMBER MR DONOFRIO SAID THIS APPROACH SHOULD BE ATTRACTIVE TO STALWART IBM CUSTOMERS BECAUSE IT ALLOWS THEM TO PRESERVE THEIR EXISTING SOFTWARE AN OPTION NOT AVAILABLE ON THE SP1 OR ITS SUCCESSORS WHICH USE A DIFFERENT OPERATING SYSTEM EARLY SPECIALIZED VERSIONS OF IBM'S PARALLEL MAINFRAME ARE EXPECTED LATER THIS YEAR TO BE FOLLOWED BY GENERALPURPOSE MACHINES AS SOON AS IBM DEVELOPS THE REQUIRED OPERATING SOFTWARE IBM ALSO WILL CONTINUE DEVELOPING ITS CONVENTIONAL MAINFRAMES WHICH STILL SUPPLY AS MUCH AS ONETHIRD OF ITS 65 BILLION IN ANNUAL REVENUE FOR AS LONG AS CUSTOMERS WANT ITS PLANS IN THIS AREA SHOULD BECOME CLEARER NEXT WEEK WHEN MR DONOFRIO WILL DISCUSS IBM'S MAINFRAME STRATEGY AT A BIG MAINFRAME PRODUCT INTRODUCTION IN YESTERDAY'S ANNOUNCEMENT IBM INTRODUCED A NEW LOWEND COLOR WORKSTATION FOR A CHEAP 3995 IT WILL COMPETE AGAINST A POPULAR MACHINE FROM SUN MICROSYSTEMS INC IBM BASED IN ARMONK NY ALSO LAUNCHED MOREPOWERFUL VERSIONS OF SOME EXISTING WORKSTATIONS MADE PRICE CUTS ON VARIOUS PARTS AND ANNOUNCED A NEW HIGHCAPACITY SERVER THAT STORES DATA FOR COMPUTER NETWORKS THE SP1 SUPERCOMPUTER HOOKS AS MANY AS 64 RISC CHIPS TOGETHER IN A SYSTEM THAT IBM SAID SHOULD BE ESPECIALLY ATTRACTIVE BECAUSE IT CAN RUN VIRTUALLY ALL THE SOFTWARE THAT ALREADY RUNS ON IBM'S WORKSTATIONS ITS PRICE STARTS AT 312000 FOR A BASIC EIGHTCHIP VERSION AND RISES TO 276 MILLION FOR THE TOPOFTHELINE MACHINE 9302030137 930203 AMBER'S STORES JANUARY SALES DALLAS AMBER'S STORES INC SAID JANUARY SAMESTORE SALES ROSE 69 WHILE TOTAL JANUARY SALES WERE UP 94 TO 35 MILLION IN THE FISCAL FOURTH QUARTER ENDED JAN 31 COMPARABLESTORE SALES CLIMBED 99 FOR THE FULL FISCAL YEAR THE SPECIALTY RETAILER POSTED A SAMESTORE SALES INCREASE OF 84 TOTAL SALES IN THE QUARTER WERE 181 MILLION ALSO A 94 INCREASE FROM THE YEAREARLIER PERIOD FOR THE YEAR TOTAL SALES ROSE 62 TO 422 MILLION 9302030136 930203 MARY KAY NAMES VICE CHAIRMAN DALLAS RICHARD C BARTLETT WAS NAMED TO THE NEWLY CREATED POSITION OF VICE CHAIRMAN OF MARY KAY CORP A PRIVATELY HELD COSMETICS COMPANY MR BARTLETT WAS PREVIOUSLY PRESIDENT AND CHIEF OPERATING OFFICER OF MARY KAY COSMETICS INC THE COMPANY'S OPERATING SUBSIDIARY THOSE POSITIONS WON'T BE FILLED INSTEAD LARRY E HARLEY PREVIOUSLY EXECUTIVE VICE PRESIDENT OF US OPERATIONS FOR THE COSMETICS UNIT WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT OF US OPERATIONS AND ALONG WITH THE HEAD OF INTERNATIONAL OPERATIONS WILL REPORT DIRECTLY TO JOHN P ROCHON CHIEF EXECUTIVE OFFICER OF THE PARENT COMPANY A SPOKESMAN FOR THE COMPANY SAID MR BARTLETT'S PROMOTION REFLECTS THE CURRENT EMPHASIS AT MARY KAY ON INTERNATIONAL EXPANSION MR BARTLETT WILL BE INVOLVED IN DEVELOPING THE INTERNATIONAL EXPANSION STRATEGY HE SAID 9302030135 930203 TECHNOLOGY ENDOSONICS WINS FDA APPROVAL PLEASANTON CALIF ENDOSONICS CORP SAID IT HAS RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO BEGIN MARKETING A CORONARY DIAGNOSTIC DEVICE THE DEVICE CALLED A VISIONS F/X DIAGNOSTIC IMAGING CATHETER WILL BE SOLD IN THE US BEGINNING IN THE SECOND QUARTER AND ABROAD IN THE FOLLOWING QUARTER THE MEDICALEQUIPMENT COMPANY SAID THE DEVICE USES A CATHETER CONTAINING COMPUTER CHIPS THAT TRANSMIT AN ULTRASOUND PICTURE OF THE INSIDE OF THE HEART 9302030134 930203 MARKETING & MEDIA COCACOLA MAINTAINS SHARE OF US SOFTDRINK MARKET ATLANTA AMID VERY SLIGHT SOFTDRINK INDUSTRY GROWTH LAST YEAR COCACOLA CO MAINTAINED ITS 407 SHARE OF THE US SOFTDRINK MARKET IN 1992 WHILE RIVAL PEPSICO INC SLIPPED TO 313 FROM 315 IN 1991 A NEW STUDY SHOWS IN THE SOFTDRINK INDUSTRY MARKETSHARE MOVEMENTS ARE A CLOSELY WATCHED GAUGE OF SOFTDRINK COMPANY PERFORMANCE THE 1992 FIGURES COME FROM THE MAXWELL CONSUMER REPORT ON THE SOFTDRINK INDUSTRY AN ANNUAL STATISTICAL SURVEY OF BEVERAGE TRENDS THE REPORT IS EXPECTED TO BE RELEASED THIS WEEK THE REPORT ESTIMATES THAT THE TOTAL SOFTDRINK INDUSTRY HURT BY LINGERING EFFECTS OF RECESSION A COOL SUMMER AND THE GROWTH OF PRIVATELABEL BEVERAGES GREW ONLY 15 IN 1992 EXCLUDING TEA PRODUCTS APPROXIMATING THE 16 INCREASE IN 1991 THE LATEST FIGURE SHOWS THAT THE INDUSTRY HAS SETTLED INTO A GROWTH PATTERN MUCH SLOWER THAN THE 5 TO 7 OF THE 1980S ANOTHER INDUSTRY BELLWETHER PER CAPITA CONSUMPTION SHOWED ONLY A MINOR INCREASE AS WELL THE REPORT ESTIMATES THAT THE AVERAGE CONSUMER DRANK 48 GALLONS OF SOFT DRINKS LAST YEAR UP FROM 478 GALLONS IN 1991 THE MARKET SHARE FOR DIET SOFT DRINKS DECLINED SHOWING THEIR FIRST ANNUAL DROP TO 294 FROM 298 IN 1991 9302030133 930203 LETTERS TO THE EDITOR WE LIKE HILLARY REGARDING YOUR JAN 22 EDITORIAL HILLARY'S JOB HILLARY CLINTON SERVED ON OUR ADVISORY BOARD FOR NEARLY TWO YEARS I FOUND HER TO BE BRIGHT EXTREMELY KNOWLEDGEABLE CREATIVE AND CONCERNED ABOUT OUR CUSTOMERS AS WELL AS OUR CORPORATE RESPONSIBILITY TO THE 700 COMMUNITIES THAT WE SERVE IN 27 STATES FRANKLY FROM MY PERSONAL EXPERIENCE IN DEALING WITH MRS CLINTON I CAN THINK OF NO ONE BETTER ABLE TO TACKLE THE COMPLICATED PROBLEMS OF HEALTH CARE REFORM THE BUSINESS COMMUNITY SHOULD SALUTE THIS CHOICE 9302030132 930203 AIRCRAFT ENGINE JOINT VENTURE WEST PALM BEACH FLA GENERAL MOTORS CORP'S ALLISON GAS TURBINE DIVISION AND UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY UNIT HAVE FORMED A JOINT VENTURE TO DEVELOP AIRCRAFT ENGINES FOR THE US MILITARY THE VENTURE WILL PROVIDE ABOUT 2400 ENGINES FOR THE ADVANCED MEDIUMATTACK WEAPON SYSTEM AIRCRAFT CALLED THE AX THE AX IS REPLACING THE AGING A6 AND F111 AIRCRAFTS USED BY THE NAVY AND AIR FORCE GM HAS PUT THE ALLISON GAS TURBINE UNIT UP FOR SALE BUT A GM SPOKESMAN SAID YESTERDAY A BUYER FOR THE UNIT HASN'T BEEN FOUND 9302030130 930203 SOUTHWEST AIRLINES ADDS A CITY DALLAS SOUTHWEST AIRLINES SAID IT WILL BEGIN OFFERING SERVICE FROM LOUISVILLE KY IN MAY THE AIRLINE WILL OFFER SIX DAILY NONSTOP ROUNDTRIP FLIGHTS BETWEEN LOUISVILLE'S STANDIFORD FIELD AND CHICAGO FOUR DAILY NONSTOP ROUNDTRIP FLIGHTS BETWEEN LOUISVILLE AND ST LOUIS AND ONE DAILY NONSTOP ROUNDTRIP FLIGHT BETWEEN LOUISVILLE AND BIRMINGHAM ALA THE UNRESTRICTED FARE BETWEEN LOUISVILLE AND THE THREE CITIES WILL BE 49 ONEWAY SOUTHWEST SAID OTHER CARRIERS CURRENTLY CHARGE 400 FOR TRAVEL TO CHICAGO ST LOUIS AND BIRMINGHAM FROM LOUISVILLE AN UNRESTRICTED FARE OF 39 APPLIES TO OFFPEAK HOURS SOUTHWEST SAID THE AIRLINE SAID IT WILL HAVE 40 EMPLOYEES AT STANDIFORD FIELD ONCE THE OPERATION IS FULLY STAFFED SOUTHWEST HAS ABOUT 12000 EMPLOYEES KENTUCKY WILL BECOME THE 16TH STATE SERVED BY THE CARRIER AND LOUISVILLE THE 35TH CITY 9302030129 930203 TREMONT UNIT'S FACILITY DENVER TREMONT CORP SAID ITS TITANIUM METALS CORP SUBSIDIARY HAS SUCCESSFULLY BEGUN TEST RUNS OF ITS NEW VACUUM DISTILLATION TITANIUM SPONGE PLANT IN HENDERSON NEV CONSTRUCTION OF THE FACILITY IS SUBSTANTIALLY COMPLETE THE COMPANY SAID THE PLANT WILL PRODUCE TITANIUM SPONGES OF SIGNIFICANTLY HIGHER PURITY THAN ANYTHING CURRENTLY AVAILABLE IN THE UNITED STATES TITANIUM METALS PRESIDENT AND CHIEF EXECUTIVE KIRBY C ADAMS SAID THE COMPANY SUPPLIES TITANIUM FOR COMMERCIAL AND MILITARY AIRCRAFT ENGINES AND OTHER USES 9302030127 930203 WORLD MARKETS IN DULL DEALINGS TOKYO SHARE PRICES FIRM A BIT AND LONDON STOCKS FALL AS RALLY IS SHORTLIVED A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ENDED MARGINALLY FIRMER TUESDAY IN QUIET DEALINGS IN LONDON AS DULLNESS SET IN FOLLOWING THE PREVIOUS DAY'S RALLY SHARES WEAKENED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 10986 POINTS MONDAY ROSE 5267 TO 1718631 ON WEDNESDAY THE NIKKEI INDEX ROSE 13264 POINTS TO CLOSE THE MORNING SESSION AT 1731895 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES UP FROM 1754 MILLION SHARES ON MONDAY GAINERS OUTNUMBERED LOSERS 599341 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSSUES WHICH ADDED 113 POINTS MONDAY EDGED UP 180 TO 130181 FIRM BUYING OF FUTURES CONTRACTS HELPED THE NIKKEI RISE ON INDEXLINKED ARBITRAGE BUYING PUBLIC PENSION FUNDS APPEARED TO BE SUPPORTING THE MARKET TUESDAY BY BUYING FUTURES THOUGH THEIR ACTIVITY IN THE STOCK MARKET WAS LIMITED DEALERS DOMINATED TRADING AND THE NIKKEI'S MODERATE ADVANCE THROUGHOUT MOST OF THE SESSION GAVE WAY TOWARD THE CLOSE AS THEY CASHED IN ON THEIR POSITIONS PROFITTAKING PUSHED DOWN SEVERAL SHARES THAT HAD ADVANCED STRONGLY IN THE PAST FEW SESSIONS INVESTORS CONTINUE TO FOCUS ON THE LIKELIHOOD OF A DISCOUNT RATE CUT SOON BY THE BANK OF JAPAN BUT A 075 PERCENTAGEPOINT REDUCTION IS ALREADY REFLECTED IN MARKET PRICES THUS ONLY A LOWERING OF AT LEAST ONE POINT WHICH WAS CONSIDERED UNLIKELY WOULD PROPEL THE MARKET HIGHER THE RATE NOW 325 IS WHAT THE CENTRAL BANK CHARGES FOR SHORTTERM LOANS TO BANKS THOUGH MARKET SENTIMENT HAD IMPROVED PARTICIPANTS BELIEVED THE NIKKEI'S CURRENT UPSWING IS UNSUSTAINABLE ABOVE 17500 INVESTORS IGNORED MORE SIGNS OF JAPANESE ECONOMIC WEAKNESS INCLUDING A REPORT THAT UNEMPLOYMENT HAD RATCHETED UP IN DECEMBER BUT SHORTSELLERS WHOSE TRADING ANTICIPATES A MARKET DECLINE HAD BECOME MORE CAUTIOUS AMID EXPECTATIONS THE GOVERNMENT WILL TRY TO BOOST THE NIKKEI TOWARD THE MARCH 31 CLOSE OF THE CURRENT FISCAL YEAR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 172 POINTS TO 28344 AFTER TOUCHING A LOW OF 28297 AND A HIGH OF 28597 THE FT 30STOCK INDEX DECLINED 118 POINTS TO 21957 THOUGH ACTIVITY WAS CALM VOLUME WAS STILL A ROBUST 8545 MILLION SHARES COMPARED WITH 7934 MILLION SHARES A DAY EARLIER AFTER MONDAY'S SHARP GAINS ON ANTICIPATION OF FURTHER CUTS IN BRITISH LENDING RATES THE MARKET HAD TROUBLE FINDING MORE MOMENTUM WITHOUT ANY SUBSTANTIVE BULLISH NEWS ON RATES AND THE ECONOMY IN ADDITION SOME SHARES MAY BE IN A HOLDING PATTERN UNTIL INVESTORS EXAMINE 1992 CORPORATE EARNINGS WHICH ARE TO START BEING REPORTED AT MIDMONTH AND A LOWER FUTURES MARKET HELPED DEPRESS THE STOCK MARKET THUS THE RETREAT YESTERDAY WASN'T SURPRISING AND INVESTORS TOOK SOME PROFITS LOCKED IN SINCE LAST WEEK'S DROP IN BASE LENDING RATES TO 6 IN FRANKFURT STOCK PRICES ENDED LITTLE CHANGED IN QUIET THIN TRADING AND AN ABSENCE OF MARKETMOVING NEWS THE DAX 30STOCK INDEX FELL 207 POINTS TO 158309 BOTH BUYERS AND SELLERS HUNG BACK SEARCHING IN VAIN FOR A TRADING TREND OF THE DAX STOCKS 19 DECLINED AND 10 ADVANCED AFTER A PROMISING START PARIS SHARES ENDED MIXED INVESTORS WERE ENCOURAGED BY THE FRENCH FRANC'S CALM ON THE FOREIGNEXCHANGE MARKET IN THE PAST TWO DAYS DESPITE PREDICTIONS THAT THE CURRENCY WOULD COME UNDER ATTACK AMSTERDAM PRICES FELL AS ONE OF THE NATION'S LARGEST COMPANIES DAF AN ANGLODUTCH TRUCK MAKER WAS GRANTED COURT PROTECTION FROM CREDITORS MILAN STOCKS GAINED ON WIDESPREAD OPTIMISM MARRED ONLY BY CONCERNS THAT ITALIAN POLITICAL TENSIONS COULD DELAY PRIVATIZATIONS OF BANKS MADRID EQUITIES SURGED IN HEAVY TRADING BOOSTED BY FOREIGN INTEREST IN THE SPANISH BOND MARKET STOCKHOLM SHARES DROPPED IN HEAVY TRADING AS ENTHUSIASM WAS DAMPED BY DOUBTS AHEAD OF CORPORATE EARNINGS REPORTS AND BY A WEAKER DOLLAR IN BRUSSELS AFTER TWO SESSIONS OF STRONG GAINS SHARES CONSOLIDATED AND ENDED MIXED SHARES GENERALLY WERE MIXED TO HIGHER ON THE BIG ASIAN BOURSES THOUGH SYDNEY PRICES MANAGED ONLY A SCANT RISE DESPITE STRONGERTHANEXPECTED HOUSING APPROVALS AND RECORD AUSTRALIAN EXPORTS IN DECEMBER SINGAPORE STOCKS ROSE ON LASTMINUTE BUYING TAIPEI PRICES' RALLY EXTENDED TO A THIRD SESSION THE BULLISHNESS CONTINUING FROM BETTER FEELINGS ABOUT TAIWAN'S POLITICAL SITUATION HONG KONG SHARES FINISHED LOWER AS A WAVE OF AFTERNOON SELLING WIPED OUT NARROW MORNING GAINS AND LEFT PRICES NEAR INTRADAY LOWS INVESTORS WERE ANXIOUS ABOUT HOLDING STOCKS IN THE BRITISH COLONY'S UNCERTAIN POLITICAL SITUATION AFTER THE HONG KONG MARKET CLOSED THE GOVERNMENT SAID GOV CHRIS PATTEN WHOSE DEMOCRACY PROPOSALS HAVE FUELED A CONTINUING DISPUTE INVOLVING BRITAIN AND CHINA WOULD UNDERGO SURGERY THIS WEEK FOR A HEART AILMENT THIS PROMPTED SPECULATION MR PATTEN COULD BE REPLACED IN AN EFFORT TO SHORE UP RELATIONS WITH BEIJING WHICH IN TURN COULD BE BULLISH FOR THE TERRITORY'S STOCK MARKET AMONG CORPORATE DEVELOPMENTS IN STOCKHOLM ELECTROLUX DECLINED 3 KRONOR OR 13 TO 225 KRONOR 3013 THE HOUSEHOLDAPPLIANCE MAKER WAS EXPECTED TODAY TO REPORT THAT 1992 PRETAX PROFIT AFTER FINANCIAL ITEMS PROVISIONALLY DECLINED 29 TO ABOUT 1 BILLION KRONOR 1339 MILLION FROM 103 BILLION KRONOR A YEAR EARLIER ELECTROLUX WHICH HADN'T OFFERED ITS OWN ESTIMATE WILL BE THE FIRST MAJOR SWEDISH COMPANY TO POST RESULTS WHICH COULD SET THE TONE FOR THE STOCKHOLM BOURSE 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 9302030126 930203 TECHNOLOGY SPRINT'S 4THPERIOD PROFIT ROSE 20 WHILE GTE'S NET FELL 19 ON CHARGES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL SPRINT CORP POSTED A NEARLY 20 GAIN IN FOURTHQUARTER EARNINGS REFLECTING BETTER OPERATING PROFIT AND LONGDISTANCE TRAFFIC VOLUME WHILE GTE CORP'S NET INCOME FELL 19 BECAUSE OF SEVERAL CHARGES SPRINT ALSO ANNOUNCED A LIBERAL MONEYBACK GUARANTEE FOR BUSINESS CUSTOMERS OF ITS TOLLFREE 800 SERVICE IN AN AGGRESSIVE BID TO TAKE AWAY BUSINESS FROM AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP THE STRONG SHOWING BY SPRINT OVERLAND PARK KAN IS AN INDICATION THAT AT&T HAS MORE TO WORRY ABOUT THAN ITS BIGGER NEMESIS IN LONGDISTANCE TELEPHONE SERVICE MCI ANALYSTS SAID BENEFITS FROM SPRINT'S MARKETING PROGRAMS THE MOST A DISCOUNT SERVICE FOR RESIDENTIAL CUSTOMERS AND CLOUT AIMED AT SMALL BUSINESSES ARE FINALLY KICKING IN FOURTHQUARTER NET ROSE TO 117 MILLION OR 53 CENTS A SHARE FROM 98 MILLION OR 45 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 10 TO 241 BILLION FROM 220 BILLION FOR FULLYEAR 1992 NET CLIMBED 24 TO 457 MILLION OR 207 A SHARE FROM 3675 MILLION OR 168 A SHARE THE PREVIOUS YEAR THE 1992 RESULTS INCLUDE A GAIN OF 17 CENTS A SHARE FROM A CHANGE IN INCOME TAX ACCOUNTING STANDARDS SPRINT SAID REVENUE GREW 51 TO 923 BILLION FROM 878 BILLION IN 1991 WE ARE PLEASED WITH THE MOMENTUM WE HAVE BUILT HEADING INTO 1993 SAID SPRINT CHAIRMAN WILLIAM T ESREY ADDING THAT THE PENDING MERGER WITH CENTEL CORP NEW MARKETING PROGRAMS AND GROWTH IN LOCAL PHONE LINES POSITION US TO TAKE ADVANTAGE OF NEW OPPORTUNITIES AND FOR IMPROVED LONGTERM PERFORMANCE SPRINT'S LONGDISTANCE OPERATING PROFIT IN THE QUARTER CRACKED THE 100 MILLION MARK FOR THE FIRST TIME RISING 32 TO 106 MILLION FROM 80 MILLION A YEAR EARLIER FOR THE YEAR LONGDISTANCE OPERATING PROFIT INCREASED 54 TO 311 MILLION FROM 295 MILLION LONGDISTANCE REVENUE HELPED BY TRAFFIC GROWTH OF 21 IN THE QUARTER GREW 11 TO 149 BILLION SPRINT PEGGED MUCH OF THE INCREASE TO MORE DATA SYSTEMS SALES SPRINT'S LOCAL PHONE BUSINESS SAW A SLIGHT DECLINE IN OPERATING PROFIT IN THE QUARTER TO 160 MILLION WHILE REVENUE GREW 7 TO 766 MILLION BUT THE MAIN STORY AT SPRINT IS THAT THE LONGDISTANCE UNIT'S GROWTH FROM THE THIRD TO FOURTH QUARTERS MEANS THEY'RE PROBABLY PICKING UP A BIT OF MARKET SHARE SAID GREGORY SAWERS AN ANALYST AT SANFORD BERNSTEIN & CO AT&T DID 1 SEQUENTIAL GROWTH IN THE QUARTER AND MCI 3 HE NOTED YESTERDAY SPRINT ANNOUNCED A NEW MARKETING PROGRAM TO TOLLFREE CUSTOMERS INCLUDING A GUARANTEED FULL REFUND OF UP TO 50000 IN USAGE CHARGES WITHIN 90 DAYS TO DISSATISFIED CUSTOMERS WHO CANCEL SERVICE SPRINT IS BETTING IT CAN GARNER A SIZABLE SHARE OF THE 75 BILLION TOLLFREE MARKET NOW DOMINATED BY AT&T THE FEDERAL COMMUNICATIONS COMMISSION HAS OPENED A BIG DOOR FOR SPRINT MCI AND OTHER CARRIERS WITH A RULING DUE TO TAKE EFFECT THIS SPRING THE ORDER WILL ENABLE CUSTOMERS TO SEEK CHEAPER RATES FOR 800 LINES FROM OTHER CARRIERS AND FOR THE FIRST TIME TO KEEP THEIR EXISTING TOLLFREE NUMBERS IF THEY SWITCH CARRIERS AT&T RECENTLY ANNOUNCED ITS OWN SERVICE GUARANTEE A PLEDGE TO RESTORE A CUSTOMER'S 800 LINE WITHIN FIVE MINUTES IF IT MALFUNCTIONS OR THE CUSTOMER GETS THE MONTHLY 800 SERVICE CHARGE REFUNDED UNLIKE SPRINT'S GUARANTEE THE PLAN DOESN'T COVER USAGE CHARGES SPRINT BY CONTRAST WANTS TO GIVE NEW INCENTIVES TO CUSTOMERS TO TRY ITS 800 SERVICE SAID GERRY EUSTON VICE PRESIDENT OF 800 MARKETING TROUBLE WITH YOUR INSTALLATION BILLING DISCREPANCY SERVICE OUTAGES ALL QUALIFY FOR OUR REFUND SEPARATELY GTE STAMFORD CONN REPORTED FOURTHQUARTER EARNINGS OF 417 MILLION OR 44 CENTS A SHARE COMPARED WITH 515 MILLION OR 57 CENTS A SHARE A YEAR EARLIER THE LATEST RESULTS INCLUDED AFTERTAX CHARGES TOTALING 100 MILLION OR 11 CENTS A SHARE INCLUDING 52 MILLION FROM THE EARLY RETIREMENT OF HIGHCOUPON DEBT AND 48 MILLION FROM THE RECENT SALE OF GTE'S ELECTRICAL PRODUCTS GROUP REVENUE FELL ABOUT 2 TO 513 BILLION EXCLUDING SPECIAL ITEMS GTE SAID FOURTHQUARTER EARNINGS PER SHARE FROM CONTINUING OPERATIONS GREW 10 FOR THE YEAR GTE POSTED A LOSS OF 745 MILLION OR 86 CENTS A SHARE COMPARED WITH PROFIT OF 154 BILLION OR 175 A SHARE IN THE PREVIOUS YEAR REVENUE GREW A SCANT 18 TO 1998 BILLION FROM 1962 BILLION IN 1991 IN 1992 GTE TOOK A 24 BILLION CATCHUP CHARGE FOR ACCOUNTING FOR RETIREE HEALTH BENEFIT COSTS 9302030124 930203 S&P MAY ACT ON AMERICAN EXPRESS DEBT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP PLACED ON REVIEW FOR POSSIBLE DOWNGRADE THE FINANCIAL CREDIT RATING OF AMERICAN EXPRESS CO AND ITS SUBSIDIARIES CITING COMPETITION IN ITS CORE CHARGECARD BUSINESS AND QUESTIONS ABOUT THE MANAGEMENT OF ITS SHEARSON LEHMAN BROTHERS INC DIVISION WHILE THE MOVE WOULD PUT THE PARENT'S RATINGS AT SINGLEAPLUS IN LINE WITH MOODY'S INVESTORS SERVICE INC IT WOULD PUSH SHEARSON LEHMAN BROTHERS HOLDING INC'S COMMERCIAL PAPER RATING BELOW THAT OF MOODY'S TO SINGLEA2 THAT COULD RAISE THE BROKERAGE UNIT'S FINANCING COSTS AS WELL AS MAKING IT MORE DIFFICULT TO SHED THE DIVISION THE COMPANY SAID RECENTLY IT HOPES TO IMPROVE SHEARSON'S RATING TO BECOME A STANDALONE SINGLEARATED COMPANY WITHOUT AID FROM ITS PARENT NOW THE CURRENT SINGLEA RATING REFLECTS IMPLICIT SUPPORT FROM AMERICAN EXPRESS THEY HAVE SOME WORK TO DO TO GET IT TO A SINGLEA STAND ALONE SAID RICHARD SCHMIDT AN S&P'S ANALYST IN RESPONSE AMERICAN EXPRESS SAID IN A STATEMENT WE ARE OBVIOUSLY DISAPPOINTED WITH THE DECISION BY STANDARD & POOR'S TO PUT US ON CREDITWATCH SINCE THE REVIEW WILL NOT BE COMPLETED UNTIL LATER THIS MONTH WE WILL BE MEETING WITH REPRESENTATIVES OF S&P TO UPDATE THEM ON THE PROGRESS AT OUR BUSINESS UNITS OUR STRATEGIES AND RECENT MANAGEMENT CHANGES A COMPANY SPOKESMAN ADDED WE DON'T BELIEVE IT WILL HAVE ANY MATERIAL FINANCIAL IMPACT THE RATINGS REVIEW WASN'T DRIVEN BY THE COMPANY'S FOURTHQUARTER RESULTS ALONE BUT RATHER BY THE COMPANY'S DIFFICULTY IN IMPROVING THE FLAGSHIP'S CHARGECARD OPERATIONS ONCE THE COMPANY'S CASH COW THE CORE TRAVEL RELATED SERVICES HAS BEEN HURT BY COMPETITION FROM CHEAPER CREDIT CARDS AND THE SUCCESS OF SUCH RIVALS AS THE DISCOVER CARD AND EVEN THE MORE RECENT CREDIT CARD OFFERED BY GENERAL MOTORS CORP MR SCHMIDT SAID THE UNIT HAS EMBARKED ON A NEW STRATEGY TO PERSUADE CARDHOLDERS TO USE THE CARD MORE FREQUENTLY RATHER THAN BOOST THE OVERALL CARDMEMBER BASE THERE ARE QUESTIONS ABOUT THE CORE CARD BUSINESS GOING FORWARD SAID MR SCHMIDT THERE'S A BIG BIG JOB HERE MANAGEMENT HAS TO ADDRESS THE OTHER CONCERN OF S&P'S IS THE LACK OF A CLEAR MANAGEMENT SUCCESSION PLAN AT SHEARSON JAMES D ROBINSON III WHO RECENTLY SAID HE WOULD RESIGN AS CHAIRMAN OF AMERICAN EXPRESS WAS TO BECOME HEAD OF SHEARSON DISPLACING HOWARD CLARK JR AS SHEARSON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT MR ROBINSON RESIGNED AND NO ONE WAS NAMED TO FILL THAT POSITION S&P IS ALSO CONCERNED ABOUT MORALE AND THE EFFECTS OF EXPECTED COSTCUTTING AT THE NATION'S SECONDLARGEST BROKERAGE FIRM THERE IS SOME UNCERTAINTY AS TO HOW THAT'S GOING TO PAN OUT SAID MR SCHMIDT THE IMPACT ON SHEARSON'S FINANCING COSTS IS UNCLEAR SHEARSON BORROWS AT THE TWO LEVELS IN THE COMMERCIAL PAPER MARKET SHEARSON LEHMAN BROTHERS HOLDING INC LEVEL AS WELL AS THE SHEARSON LEHMAN BROTHERS SUBSIDIARY THE DOWNGRADE WOULD AFFECT THE SINGLEA1 RATINGS OF THE HOLDING COMPANY BUT NOT THE SUBSIDIARY SHEARSON DOESN'T BREAK OUT THE LEVEL OF FINANCING AT EACH UNIT BUT THE COMPANY HAD 11 BILLION IN SHORTTERM DEBT OUTSTANDING AS OF THE THIRD QUARTER ABOUT 40 BILLION IN DEBT WOULD BE AFFECTED BY THE RATING CHANGE 9302030123 930203 MEXICO IS VIEWED AS CLEAR WINNER IN NAFTA REPORT BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHILE SEEING THE POTENTIAL FOR A SURGE IN US EXPORTS TO MEXICO BECAUSE OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE INTERNATIONAL TRADE COMMISSION FOUND ONE CLEAR WINNER FROM THE TREATY MEXICO IN A CONGRESSIONALLY REQUESTED REPORT JUST COMPLETED THE ITC INDICATED THAT ANY GAINS THE US AND CANADA GET FROM THE PACT WILL VERY LIKELY BE DWARFED BY IMPROVEMENTS FOR MEXICO MEXICO THE REPORT SAID WOULD BENEFIT SUBSTANTIALLY MORE THAN EITHER THE US OR CANADA FROM THE TRADE ACCORD WHICH WAS REACHED LAST YEAR BY THE THREE COUNTRIES CONGRESS HASN'T RELEASED THE VOLUMINOUS REPORT YET BUT A SUMMARY WAS OBTAINED BY THE WALL STREET JOURNAL THE ITC A QUASIJUDICIAL GOVERNMENT BODY THAT ALSO PRODUCES TRADERELATED REPORTS FOR CONGRESS GENERALLY BLESSED THE PACT AS AN IMPORTANT STEP TOWARD FREE TRADE IN THE HEMISPHERE BUT ACKNOWLEDGED THAT CERTAIN MAJOR US INDUSTRIES SUCH AS AUTOS AND APPAREL WILL EXPERIENCE LOSSES BECAUSE OF THE AGREEMENT IT SAID THE MIDWEST SOUTH AND THE WEST WOULD BE MOST AFFECTED BY THE AGREEMENT OTHER INDUSTRIES THE REPORT SAID THAT WOULD BE HURT INCLUDE FLAT GLASS PEANUTS SHRIMP MAJOR HOUSEHOLD APPLIANCES CERTAIN HOUSEHOLD GLASSWARE CERTAIN FRESH AND FROZEN VEGETABLES CITRUS JUICE AND FRESHCUT ROSES MANY OF THOSE INDUSTRIES HAVE BEEN PRESSING CONGRESS TO OPPOSE THE AGREEMENT OR CHANGE ITS PROVISIONS SO THEY CAN WIN TRADE PROTECTION OR REDUCTIONS IN MEXICAN TRADE BARRIERS THE ITC SAID US WINNERS FROM THE ACCORD WOULD BE MACHINE TOOLS TEXTILES BEARINGS INDUSTRIAL MACHINERY STEEL MILL PRODUCTS PHARMACEUTICALS GRAINS AND OIL SEEDS LUMBER AND WOOD PRODUCTS COTTON AND AUTOMOTIVE PARTS THE SUMMARY DIDN'T ADDRESS THE EFFECTS ON CONSUMERS THE REPORT CLEARLY INDICATED THAT MEXICAN INDUSTRIES WOULD BENEFIT THE MOST FROM THE TREATY IT CONCLUDED THAT THE PACT WOULD BOOST MEXICO'S GROSS DOMESTIC PRODUCT THE MARKET VALUE OF ALL THE GOODS AND SERVICES PRODUCED IN THE COUNTRY BY ANYWHERE FROM 01 TO 114 AFTER ADJUSTING FOR INFLATION US AND CANADIAN GDPS WOULD BE BOOSTED 05 OR LESS IT SAID THE SUMMARY DIDN'T EXPLAIN THE WIDE VARIATIONS IN ITS CONCLUSIONS IT SAID HOWEVER THAT MEXICO WOULD GAIN THE MOST FROM THE AGREEMENT PARTLY BECAUSE ITS ECONOMY IS MUCH SMALLER THAN EITHER THE US OR CANADIAN ECONOMIES AND ANY EXTRA BOOST WOULD HAVE A RELATIVELY WIDER EFFECT IN MEXICO IN A BENEFIT TO US TRADE THE REPORT SAYS US EXPORTS TO MEXICO WOULD INCREASE BY 52 TO 271 WHILE MEXICAN IMPORTS TO THE US WOULD INCREASE BY 34 TO 154 FOR THE FIRST THREE QUARTERS OF 1992 MEXICO EXPORTED 265 BILLION TO THE US ACCORDING TO THE US COMMERCE DEPARTMENT WHILE THE US EXPORTED 305 BILLION TO MEXICO THE REPORT CONCLUDED THAT US WORKERS WOULD BE HELPED MUCH LESS IF AT ALL BY THE AGREEMENT THE EFFECT ON US WORKERS HAS BEEN A PARTICULARLY THORNY ISSUE ESPECIALLY AMONG LABOR UNIONS CONCERNED THAT WORKERS WILL BE DISPLACED BY UNFAIR COMPETITION FROM MEXICAN WORKERS INCLUDING CHILDREN THE ITC PROJECTED LONGTERM GAINS IN AGGREGATE EMPLOYMENT OF LESS THAN 1 FOR THE US AND CANADA BECAUSE OF THE PACT IT PREDICTED A GAIN OF AS MUCH AS 7 IN EMPLOYMENT IN MEXICO THE STUDY ALSO PROJECTED THAT THE AGREEMENT WOULD LIFT WAGES IN MEXICO BY 07 TO 162 ADJUSTING FOR INFLATION WHILE WAGES WOULD BE INCREASED 03 OR LESS IN THE US AND 05 OR LESS IN CANADA THE REPORT CONCLUDES THERE WILL BE AN INDISCERNIBLE EFFECT ON US WAGES FOR LOWSKILLED AND HIGHSKILLED WORKERS SOME OTHER STUDIES OF THE AGREEMENT HAVE PREDICTED US WAGES WILL DECREASE AS A RESULT OF THE PACT CRITICS AND PROPONENTS ALIKE COULD USE RESULTS FROM THE ITC STUDY AS WEAPONS IN THE CONGRESSIONAL BATTLE THAT'S EXPECTED TO ERUPT IN THE COMING MONTHS OVER PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT 9302030122 930203 CREDIT RATINGS GENERAL PUBLIC UTILITIES CORP MORRISTOWN NJ MOODY'S INVESTORS SERVICE INC LOWERED THE DEBT RATINGS OF JERSEY CENTRAL POWER & LIGHT CO A UNIT OF GPU THE RATINGS AGENCY LOWERED THE UTILITY'S SECURED MEDIUMTERM NOTES AND SECURED POLLUTION CONTROL REVENUE BONDS TO SINGLEA3 FROM SINGLEA2 ABOUT 967 MILLION WAS AFFECTED MOODY'S SAID A RECENT RESTRICTIVE RATE CASE IN PENNSYLVANIA FOR METROPOLITAN EDISON CO ALSO A UNIT OF GPU COULD RESULT IN INCREASED FINANCIAL PRESSURE ON JERSEY CENTRAL POWER & LIGHT THE CASE DID NOT ALLOW METROPOLITAN EDISON TO USE THE RATE PROCESS TO DECOMMISSION THE DAMAGED NUCLEAR REACTOR AT THREE MILE ISLAND JERSEY CENTRAL POWER & LIGHT OWNS 25 OF THE DAMAGED REACTOR A SPOKESMAN FOR JERSEY CENTRAL SAID WE REGRET THE DOWNGRADE BUT WE UNDERSTAND THE CONCERNS OF THE AGENCY WE PLAN TO EMBARK ON A COSTCUTTING PROGRAM TO REGAIN THE PREVIOUS RATING HE DECLINED TO ELABORATE 9302030121 930203 CALIFORNIA INSURANCE PLAN FOR DRIVERS IS ENDORSED SACRAMENTO CALIF CALIFORNIA'S INSURANCE COMMISSIONER JOHN GARAMENDI HAS ENDORSED A NEW AUTOINSURANCE PLAN THAT WOULD COLLECT MANDATORY PREMIUMS AT THE GAS PUMP AND AUTOMATICALLY COVER ALL STATE DRIVERS MR GARAMENDI SAID THE APPROACH CALLED PAYATTHEPUMP WOULD PROVIDE BASIC AUTO COVERAGE THROUGH SURCHARGES ON GASOLINE AS WELL AS ON DRIVERS LICENSES AND VEHICLE REGISTRATIONS THE PLAN COULD SAVE CALIFORNIA'S AUTOINSURANCE POLICYHOLDERS AS MUCH AS 4 BILLION A YEAR HE SAID THE STATE LEGISLATURE IS HOLDING HEARINGS ON THE PLAN WHICH WOULD INCLUDE THE ESTIMATED 25 TO 30 OF THE STATE'S 20 MILLION DRIVERS WHO AREN'T INSURED MARY CRYSTAL SPOKESWOMAN FOR WESTERN INSURANCE INFORMATION SERVICE A CONSUMEREDUCATION ORGANIZATION SUPPORTED BY THE INDUSTRY BLASTS THE IDEA SHE SAID CONSUMERS WOULD LOSE THE RIGHT TO CHOOSE THEIR OWN INSURERS PRICE AND SERVICE WOULD SUFFER WITHOUT COMPETITION AND DRIVERS WITH GOOD RECORDS WOULD BE DISCRIMINATED AGAINST 9302030120 930203 INTERNATIONAL VW BEETLE MAY RESURFACE IN BRAZIL IF TAXES ARE CUT RIO DE JANEIRO AUTOLATINA THE BRAZILIAN JOINT VENTURE BETWEEN VOLKSWAGON AG OF GERMANY AND FORD MOTOR CO OF DETROIT SAID IT IS PREPARED TO RELAUNCH THE BEETLE IF BRAZIL CUTS TAXES ON THEM AND OTHER SMALL CARS BRAZIL'S PRESIDENT ITAMAR FRANCO RECENTLY CHALLENGED AUTOLATINA TO RELAUNCH THE BEETLE WHICH WAS TAKEN OUT OF PRODUCTION EVERYWHERE BUT MEXICO IN THE 1980S AS A WAY OF GIVING INFLATIONPUNISHED BRAZILIANS ACCESS TO A CHEAP CAR AUTOLATINA PRESIDENT PIERREALAIN DE SMEDT SAID IT WOULD BE POSSIBLE ONLY IF THE GOVERNMENT ELIMINATED TAXES THAT ACCOUNT FOR 14 OF A SMALL CAR'S RETAIL PRICE WITH LOWER TAXES MR DE SMEDT SAID AUTOLATINA COULD SELL THE BEETLE IN BRAZIL FOR ABOUT 7000 THAT WOULD BE 1000 LESS THAN ITS CURRENT PRICE IN MEXICO MR FRANCO IS REPORTED TO BE STUDYING THE MATTER BUT FINDS THE PRICE STEEP MR DE SMEDT SAID AUTOLATINA WAS PREPARED TO INVEST UP TO 35 MILLION TO START MAKING THE BEETLE AGAIN AND SAID IT COULD BE ON THE STREETS AS EARLY AS JULY KNOWN IN BRAZIL AS THE FUSCA THE BEETLE WAS RETIRED THERE IN 1986 9302030118 930203 CHRYSLER BEATS EXPECTATIONS IN STOCK OFFER BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP SOLD 46 MILLION NEW COMMON SHARES SIX MILLION MORE THAN ORIGINALLY PLANNED TO RAISE 178 BILLION IN THE SECONDLARGEST STOCK SALE EVER FOR A US INDUSTRIAL CONCERN THE SHARES SOLD FOR 3875 A SHARE 250 A SHARE HIGHER THAN THE STOCK WAS TRADING WHEN THE SALE WAS ANNOUNCED JAN 11 COMPANIES OFTEN SEE THE PRICE OF THEIR STOCK DROP WHEN THEY SELL NEW SHARES BECAUSE OF THE DILUTIVE EFFECT ON PERSHARE EARNINGS BUT CHRYSLER'S SHARES TRIPLED IN PRICE LAST YEAR AND SURGED AGAIN LAST MONTH TO TOP 40 BEFORE RETREATING SLIGHTLY IN RECENT DAYS THE LARGEST COMMON STOCK ISSUE BY A US INDUSTRIAL CONCERN OCCURRED IN MAY WHEN GENERAL MOTORS CORP SOLD SHARES VALUED AT 215 BILLION THE CHRYSLER OFFER IS THE FIFTHBIGGEST STOCK OFFERING EVER IN THE US ACCORDING TO SECURITIES DATA CHRYSLER NOW HAS 331 MILLION SHARES OUTSTANDING UP FROM 285 MILLION BEFORE YESTERDAY'S SALE THE NO 3 US AUTO MAKER ORIGINALLY PLANNED TO OFFER 40 MILLION SHARES TO THE PUBLIC BUT THANKS IN PART TO MOMENTUM FROM HIGHERTHANEXPECTED FOURTHQUARTER EARNINGS REPORTED LAST WEEK CHRYSLER WAS ABLE TO SELL MORE INVESTORS ALSO WERE ATTRACTED BY THE PROSPECT THAT CHRYSLER COULD EASILY PUT THE INFLUX OF NEW CAPITAL TO GOOD USE BY REDUCING ITS 39 BILLION UNFUNDED PENSION LIABILITY AND POSSIBLY IMPROVING THE AUTO MAKER'S JUNKLEVEL CREDIT RATING STANDARD & POOR'S CORP ALREADY HAS SAID IT IS REVIEWING CHRYSLER'S CREDIT RATING FOR A POSSIBLE UPGRADE PENDING THE OUTCOME OF THE STOCK OFFERING AND CHRYSLER HAS SAID AT LEAST HALF THE PROCEEDS WILL GO TO REDUCE THE PENSION LIABILITY THE OFFERING'S SUCCESS CONFIRMS CHRYSLER'S COMEBACK FROM A YEAR AGO WHEN MANY AUTO ANALYSTS WERE DOUBTING THAT THE COMPANY COULD SURVIVE AS AN INDEPENDENT AUTO MAKER THE OFFERING IS ALSO A COUP FOR FIRST BOSTON CORP THE LEAD UNDERWRITER IN THE SALE THE OFFERING STANDS IN MARKED CONTRAST TO THE AUTO MAKER'S LAST SALE OF COMMON STOCK IN OCTOBER 1991 WHEN IT STRUGGLED TO KEEP ITS SHARE VALUE ABOVE 10 BEFORE PRICING 35 MILLION SHARES AT 10125 BUT CHRYSLER HAS BEEN BUOYED SINCE THEN BY SUCCESSFUL NEW PRODUCTS SUCH AS THE JEEP GRAND CHEROKEE A TRIO OF LH SEDANS AND COMING LATER THIS YEAR A NEW PICKUP TRUCK TO CAPITALIZE ON ITS RECENT SUCCESS CHRYSLER IS LAUNCHING A NEW ADVERTISING CAMPAIGN CENTERING ON THIRDPARTY TESTAMENTS TO ITS MOMENTUM THE CAMPAIGN FEATURES A LARGE PENDULUM SLICING THROUGH TIME AND TRIES TO MAKE THE POINT THAT THINGS ARE SWINGING CHRYSLER'S WAY 9302030116 930203 TECHNOLOGY AIR FORCE GIVES COMPUTER JOB TO TWO FIRMS BY HAL LANCASTER STAFF REPORTER OF THE WALL STREET JOURNAL THE AIR FORCE TRIED ONCE AGAIN TO AWARD ITS HUGE AND CONTROVERSIAL DESKTOP IV COMPUTER CONTRACT THIS TIME TO ZENITH DATA SYSTEMS AND GOVERNMENT TECHNOLOGY SERVICES INC IT MARKED THE GOVERNMENT'S THIRD ATTEMPT TO AWARD THE THREEYEAR CONTRACT WHICH HAS AN ESTIMATED VALUE OF 724 MILLION TWICE BEFORE APPEALS OF THE AWARD HAVE BEEN UPHELD A SPOKESMAN FOR COMPUADD COMPUTER CORP WHICH WAS ONE OF THE WINNERS THE FIRST TIME AROUND AND ONE OF THE PROTESTORS THE SECOND TIME SAID HE COULDN'T COMMENT ON THE LATEST AWARD BUT HE SAID COMPUADD WILL STUDY THE DECISION TO DETERMINE IF IT WILL APPEAL AGAIN FEW DETAILS WERE AVAILABLE A NEWS RELEASE ISSUED BY THE AIR FORCE SAID THE DUAL AWARD WILL PROVIDE USERS WITH A WIDE RANGE OF CHOICES AT COMPETITIVE PRICING WHILE REDUCING THE RISK OF SUPPLY SHORTAGES AND DELAYED DELIVERIES THE PREVIOUS AWARD WHICH WENT SOLELY TO ZENITH A UNIT OF FRANCE'S CIE DES MACHINES BULL WAS CRITICIZED BY COMPETITORS WHO QUESTIONED ZENITH'S ABILITY TO PRODUCE ALL THE COMPUTERS REQUIRED THE COMPETITORS AND SOME CONGRESSMEN ARGUED THAT A CRITICAL CONTRACT FOR GOVERNMENT COMPUTERS SHOULDN'T BE AWARDED TO A COMPANY OWNED BY A FOREIGN ENTITY ALTHOUGH ZENITH WHICH IS BASED IN BUFFALO GROVE ILL HAS WON GOVERNMENT CONTRACTS SEVERAL TIMES IN THE PAST UNDER THE LATEST AWARD UP TO 300000 COMPUTER SYSTEMS WILL BE PURCHASED FOR THE DEFENSE DEPARTMENT AND OTHER AGENCIES BOTH ZENITH AND GOVERNMENT TECHNOLOGY SERVICES A CHANTILLY VA SYSTEMS INTEGRATOR WILL COMPETE FOR PARTS OF THE CONTRACT AS THEY ARE PUT UP FOR BID THUS IT ISN'T POSSIBLE TO DETERMINE HOW MUCH EACH WILL BENEFIT FROM THE AWARD THE AWARDING OF THE CONTRACT HAS BEEN CLOSELY WATCHED BECAUSE OF ITS SIZE AND BECAUSE IT WAS THE FIRST PACT AWARDED UNDER THE GOVERNMENT'S HIGHLY TOUTED EXPEDITED BIDDING PROCESS BUT THE PROCESS HAS BEEN ANYTHING BUT EXPEDITED THE GOVERNMENT FIRST AWARDED THE HUGE PRIZE IN NOVEMBER 1991 TO COMPUADD A CLOSELY HELD COMPUTER MAKER BASED IN AUSTIN TEXAS AND SYSOREX INFORMATION SYSTEMS A FALLS CHURCH VA SYSTEMS INTEGRATOR IN THE LATEST ROUND OF BIDDING 14 COMPANIES SUBMITTED PROPOSALS INCLUDING GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS UNIT APPLE COMPUTER INC AST RESEARCH INC MEMOREXTELEX CORP AND INTERNATIONAL DATA PRODUCTS CORP 9302030115 930203 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BE AEROSPACE INC AN OFFERING OF 100 MILLION OF SENIOR UNSECURED NOTES VIA MERRILL LYNCH & CO AND PAINEWEBBER INC BALTIMORE GAS & ELECTRIC CO A SHELF OFFERING OF TWO MILLION COMMON SHARES BAY STATE GAS CO A SHELF REGISTRATION OF 125 MILLION OF SENIOR DEBT SECURITIES VIA SMITH BARNEY HARRIS UPHAM & CO AND KIDDER PEABODY & CO CABLEVISION SYSTEMS CORP AN OFFERING OF 100 MILLION SENIOR SUBORDINATED DEBENTURES VIA MERRILL LYNCH BEAR STEARNS & CO DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SMITH BARNEY HARRIS UPHAM COMMUNITY HEALTH COMPUTING CORP AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND PIPER JAFFREY INC RALLY'S INC AN OFFERING OF 75 MILLION OF SENIOR NOTES VIA PAINEWEBBER VENDELL HEALTHCARE INC AN INITIAL OFFERING FOR 33 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO AND JC BRADFORD & CO 9302030114 930203 DIVIDEND NEWS CULLEN/FROST BANKERS INC CULLEN/FROST BANKERS INC SAN ANTONIO DECLARED A 10 STOCK DIVIDEND PAYABLE MARCH 2 TO STOCK OF RECORD FEB 16 THE BANK HOLDING COMPANY ALSO SAID IT INTENDS TO CONSIDER A CASH DIVIDEND DURING THE SECOND HALF OF 1993 PRESIDENT ROBERT S MCCLANE SAID THE COMPANY EXPECTS IMPROVED RESULTS THIS YEAR BECAUSE OF LESS NEED TO PROVIDE FOR DECLINES IN VALUE OF FORECLOSED ASSETS ALSO CULLEN/FROST SAID GENERAL ELECTRIC PENSION FUND HOLDER OF CULLEN'S 10 MILLION CONVERTIBLE SUBORDINATED DEBENTURES MATURING IN 1996 WILL CONVERT THOSE BONDS INTO 467836 COMMON SHARES RESULTING IN A DEBT REDUCTION AND CAPITAL INCREASE CULLEN/FROST HAD 32 BILLION IN ASSETS AT YEAR'S END 9302030113 930203 US PANEL MAY BE FORMED TO ADDRESS AIRLINES' WOES WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING THE CREATION OF A COMMISSION TO STUDY HOW THE GOVERNMENT CAN HELP PULL THE AIRLINE INDUSTRY OUT OF ITS FINANCIAL TAILSPIN TRANSPORTATION SECRETARY FEDERICO PENA SAID CONGRESS AUTHORIZED SUCH AN ADVISORY COMMISSION LAST YEAR BUT FAILED TO APPROPRIATE ANY FUNDS FOR THE SEVENMEMBER BODY ONE MONTH AGO UNITED AIRLINES CHAIRMAN STEPHEN WOLF URGED MR CLINTON TO APPOINT A COMMISSION TO EVALUATE ALL THE FACTORS THAT UNDERMINE THE INDUSTRY'S VIABILITY INCLUDING AIR TRAFFIC CONTROL DELAYS AND TRADE BARRIERS TO US CARRIERS OVERSEAS IN AN APPEARANCE YESTERDAY BEFORE THE NATIONAL GOVERNORS' ASSOCIATION MR PENA SAID THE US IS PURSUING SOME VERY IMPORTANT BILATERAL DISCUSSIONS WITH OTHER NATIONS ABOUT OUR AIRLINE INDUSTRY AND ATTACHING A VERY HIGH PRIORITY TO INTERNATIONAL AVIATION ISSUES JAPAN AND AUSTRALIA ARE AMONG THE COUNTRIES INVOLVED IN THESE DISCUSSIONS TRANSPORTATION DEPARTMENT OFFICIALS ARE TRYING TO DETERMINE HOW TO FINANCE AND STAFF AN ADVISORY PANEL 9302030112 930203 TEXAS UTILITIES CO GETS LICENSE DALLAS TEXAS UTILITIES CO SAID IT RECEIVED AN OPERATING LICENSE FROM REGULATORS AUTHORIZING FUELLOADING AND LOWPOWER OPERATION OF UNIT 2 OF ITS COMANCHE PEAK NUCLEAR PLANT THE UTILITY HOLDING COMPANY SAID THE UNIT WILL BE TESTED FOR SIX MONTHS AT GRADUALLY INCREASING POWER LEVELS BEFORE UNIT 2 IS READY TO GENERATE ELECTRICITY COMMERCIALLY UNIT 1 OF COMANCHE PEAK HAS BEEN IN COMMERCIAL OPERATION SINCE AUGUST 1990 LAST WEEK TEXAS UTILITIES FILED WITH THE TEXAS PUBLIC UTILITIES COMMISSION FOR A 153 RATE INCREASE IT SAID WAS NEEDED TO COVER COSTS OF COMANCHE PEAK SO FAR THE NUCLEAR PROJECT'S CONSTRUCTION HAS COST ABOUT 12 BILLION INCLUDING THE COST OF BORROWING FUNDS DURING CONSTRUCTION FOR BOTH UNITS 9302030111 930203 NOTABLE & QUOTABLE MICHAEL LIND WRITING IN THE NATIONAL INTEREST WINTER 1993 IN THE NINETEENTH CENTURY CORPORATIONS IN EUROPEAN LANDS OF SETTLEMENT WOULD ACTUALLY IMPORT COOLIE LABOR FROM CHINA AND INDIA BY THE THOUSANDS TO COMPETE WITH HOMECOUNTRY NATIONALS FOR JOBS DRIVING DOWN WAGE RATES IN THE TWENTYFIRST CENTURY CORPORATIONS MAY TAKE THE JOBS TO THE COOLIES AS IT WERE RATHER THAN BRINGING THE COOLIES TO THE JOBS THE RESULT IS THE SAME THE LOWERING OF DEVELOPEDCOUNTRY WAGE COSTS TOWARDS THIRD WORLD LEVELS ONLY THE RHETORIC IS NEW 9302030110 930203 PEPPERAND SALT THE SHREWD STAY WITH CORPORATE DEBENTURES IN THE FUTURES MARKET TAKE FLIERS GAMBLERS PLAY HUNCHES AND TIPS THE INVESTORS' SMORGASBORD 9302030109 930203 BUSINESS BRIEF POLAROID NET FELL 49 IN 4TH PERIOD AS INSTANTFILM SALES SLID IN EUROPE CAMBRIDGE MASS POLAROID CORP REPORTED A 49 DECLINE IN EARNINGS ON A NARROW 25 INCREASE IN SALES IN THE FOURTH QUARTER FROM THE YEARAGO PERIOD AS RESULTS WERE HURT BY A SHARP DECLINE IN INSTANTFILM SALES IN EUROPE THE INSTANT PHOTOGRAPHY COMPANY WHICH HAD FORECAST A WEAK FOURTH QUARTER POSTED NET INCOME OF 296 MILLION OR 63 CENTS A SHARE DOWN FROM 585 MILLION OR 116 A SHARE IN THE 1991 FOURTH QUARTER SALES ROSE TO 6492 MILLION FROM 6334 MILLION THE EARNINGS WERE SLIGHTLY HIGHER THAN ANALYSTS' EXPECTATIONS FOLLOWING POLAROID'S EARLIER PREDICTION OF A DISAPPOINTING QUARTER AND THE COMPANY'S STOCK ROSE 2 CLOSING AT 2975 ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID OTHER FACTORS CONTRIBUTING TO THE EARNINGS DROP INCLUDED STARTUP AND MARKETING EXPENSES FOR NEW PRODUCTS AND A CHANGE IN ITS SALES MIX TO MORE CAMERAS ON WHICH IT MAKES LOWER PROFITS THAN IT DOES ON INSTANT FILM SALES ALTHOUGH THE RECESSION IN EUROPE WAS EVIDENT THE DEPTH OF THE DECLINE WAS UNEXPECTED THE REST OF OUR INTERNATIONAL BUSINESS HELD UP REASONABLY WELL HOWEVER AND WE WERE ENCOURAGED BY THE INCREASED SALES IN THE US SAID I MACALLISTER BOOTH CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER US SALES ROSE 7 IN THE QUARTER TO 3643 MILLION WHILE INTERNATIONAL SALES DROPPED 3 TO 2849 MILLION POLAROID SAID IT SOLD FOUR MILLION INSTANT CAMERAS IN 1992 UP FROM 39 MILLION IN 1991 SALES OF THE COMPANY'S NEW JOSHUA CAMERA INTRODUCED IN EUROPE IN THE FALL CONTINUE TO BE ENCOURAGING MR BOOTH ADDED NET FOR 1992 PLUNGED 86 TO 99 MILLION OR 206 A SHARE FROM 6837 MILLION OR 1254 A SHARE IN 1991 THE EARLIER YEAR INCLUDED A 925 MILLION PRETAX GAIN RECEIVED IN SETTLEMENT OF A PATENT INFRINGEMENT CASE THE COMPANY WON AGAINST EASTMAN KODAK CO SALES ROSE 4 TO 215 BILLION FROM 207 BILLION IN 1991 9302030108 930203 INTERNATIONAL IN BRAZIL DRUG FIRMS COME UNDER FIRE PRESIDENT CAMPAIGNS AGAINST ABUSIVE' MEDICINE PRICES BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL SAO PAULO BRAZIL PRESIDENT ITAMAR FRANCO HAS DECLARED WAR ON DRUGSPRESCRIPTION AND OVERTHECOUNTER ONES ACCUSING DRUG COMPANIES MANY OF THEM MULTINATIONALS OF ABUSIVE PRICE INCREASES MR FRANCO IN A BID TO LOWER MEDICINE PRICES HAS UNLEASHED A BARRAGE OF LEGAL REPRISALS AND THREATS OF NEW COMPETITION FROM STATE COMPANIES AND LOWCOST PRODUCERS IN CUBA AND CHINA THESE PEOPLE HAVE TO DISTINGUISH BETWEEN PROFITS AND GREED HE SAID RECENTLY DRUG COMPANIES ARE FIGHTING BACK RECENT PRICE INCREASES MAY OUTPACE INFLATION THEY SAY BUT THEY HARDLY MAKE UP FOR DECADES OF PRICE CONTROLS THAT MADE MANY OF THEM LOSE MONEY AND OTHERS LEAVE BRAZIL COMPANIES NEED TO MAKE PROFITS BUT IT SEEMS THAT PROFITS WHEN YOU MAKE MEDICINE ARE OBSCENE SAYS OMILTON VISCONDE PRESIDENT OF SAO PAULOBASED LABORATORIOS BIOSINTETICA AND OF A TRADE ORGANIZATION CALLED SINDUSFARM DRUG PRICING IS AN ISSUE IN MANY NATIONS TWO US SENATORS ARE EXPECTED TO CONTEND TODAY THAT DRUG COMPANIES BROKE THEIR PROMISES TO HOLD PRICE INCREASES BELOW THE INFLATION RATE IN BRAZIL'S MEDICINE WAR THE HEATED INVECTIVE PROVIDES A LOOK AT MR FRANCO'S STYLE WHICH CRITICS DESCRIBE AS MEDDLING POPULIST AND NATIONALISTIC BUT WHICH SUPPORTERS HAIL AS ATTUNED TO THE HARSH REALITIES BRAZILIANS FACE DAILY THE ARMWRESTLING MATCH ALSO GIVES A GLIMPSE INTO THE COMPLEXITIES OF BRAZIL'S ECONOMIC PROBLEMS AND THE DIFFICULTIES OF DOING BUSINESS HERE AS THE GOVERNMENT TRIES TO REDUCE INFLATION AND COMPANIES TRY TO MAKE PROFITS IN THE MIDST OF A RECESSION IT'S A DIALOGUE OF THE DEAF SAYS FRANCOIS ONEGLIA PRESIDENT OF THE BRAZILIAN UNIT OF FRANCE'S ROUSSELUCLAF WE'RE AT AN IMPASSE ON THE FACE OF IT THINGS LOOK SIMPLE IN 1992 BRAZIL'S INFLATION WAS 1130 WHILE MEDICINE PRICES ROSE 1562 BUT IN FACT THE SITUATION IS MORE COMPLEX FROM 1982 TO 1991 SAYS JORGE RAIMUNDO PRESIDENT OF GLAXO DO BRASIL A UNIT OF BRITAIN'S GLAXO HOLDINGS PLC BRAZIL'S COMPOUNDED INFLATION RATE WAS A STAGGERING 616985 WHILE MEDICINE PRICES ROSE BY A MERE 397831 AND WHILE PRICE CONTROLS DEPRESSED REVENUE COSTS KEPT GOING UP IT'S WRONG TO TAKE A PERIOD IN WHICH THE INDUSTRY WAS SIMPLY RECOVERING FROM ALL THESE YEARS AND ACCUSE IT OF ABUSIVE PRICE RISES MR RAIMUNDO TOLD THE DAILY FOLHA DE SAO PAULO TODAY WE'RE SIMPLY READJUSTING OUR PRICES ACCORDING TO INFLATION AND IF READJUSTING BY INFLATION IS ABUSING THEN THIS IS AN ABUSED COUNTRY HE AND OTHERS SAY THAT ON AVERAGE MEDICINE IS STILL CHEAPER THAN IN OTHER MAJOR LATIN AMERICAN COUNTRIES AND FAR CHEAPER THAN IN THE US OR EUROPE WITH COMPLETE PRICE FREEDOM RESTORED IN APRIL 1992 FOR MOT MEDICINES DRUG COMPANIES ADMIT THEY RAISED PRICES SHARPLY TO MAKE UP FOR LOST TIME TAKE FOR INSTANCE KNOLL SA A UNIT OF GERMANY'S BASF AG AFTER FOUR YEARS OF LOSSES WE WERE CLOSE TO CLOSING THE COMPANY SAYS PRESIDENT HEINER PFLUG BUT WHEN PRICES WERE FREED KNOLL ADJUSTED PRICES TO REALITY HE SAYS RAISING THEM ON AVERAGE 15 ABOVE INFLATION AND RETURNING TO PROFIT FOR THE BRAZILIAN CUSTOMER THIS MEANS A HIGHER EXPENSE FOR MEDICINE CONCEDES MR PFLUG BUT THE PROBLEM ISN'T THAT PRICES TODAY ARE HIGH IT'S THAT THEY WERE ARTIFICIALLY LOW AND TOTALLY UNREAL THE GOVERNMENT FORCED US TO SELL SOME MEDICINES AT PRICES BELOW PRODUCTION COSTS ANTIBIOTICS IN BRAZIL COST LESS THAN A MCDONALD'S HAMBURGER NO COMPANY CAN SURVIVE LIKE THAT A PHARMACEUTICAL COMPANY ISN'T A SOCIAL OPERATION WE INVESTED AND HAVE TO SHOW A RETURN ENTER MR FRANCO WHO ASSUMED POWER IN OCTOBER 1992 AFTER MR COLLOR'S OUSTER ON CORRUPTION CHARGES MR FRANCO SEEKING TO SHOW HIS CONCERN ABOUT SOCIAL PROBLEMS AND INFLATION SEIZED ON THE ISSUE OF DRUG PRICES ALLUDING TO THE DOMINANCE OF MULTINATIONAL COMPANIES HE RECENTLY SAID THESE PEOPLE HAVE NO COUNTRY THEY TAKE DECISIONS IN THE HIGH SEAS AND ATTACKED ON SEVERAL FRONTS HE SENT TAX INSPECTORS TO MAJOR COMPANIES ANNOUNCED HE WOULD REACTIVATE STATE COMPANIES AND ENDOW THEM WITH 11 BILLION TO MAKE CHEAP GENERIC MEDICINE THREATENED TO IMPORT MEDICINES FROM OTHER COUNTRIES LAUNCHED AN INTERNATIONAL COMPARISON OF PRICES AND COSTS AND SAID HE'D FINE COMPANIES WHOSE PRICES HE CONSIDERS ABUSIVE LAST WEEK CLAIMING THAT UNNAMED COMPANIES RAISED PRICES BY AS MUCH AS 162000 SINCE MARCH 1990 THE GOVERNMENT SAID IT WOULD ENFORCE ANTITRUST LAWS TO FORCE 47 COMPANIES TO LOWER THEIR PRICES INDUSTRY EXECUTIVES SAY THERE MAY HAVE BEEN SOME ABUSES ONCE PRICES WERE FREED AND SOME COMPANIES MAY HAVE USED TRICKS SUCH AS CHANGING THE NAME OF THEIR PRODUCT TO RAISE PRICES BUT THEY SAY THAT'S NO REASON TO PUNISH THE ENTIRE INDUSTRY OTHERS SAY THE GOVERNMENT'S INFORMATION IS WRONG ESPASIL A SMALL COMPANY OWNED BY SYNTHELABO SA A UNIT OF FRANCE'S L'OREAL SA IS CITED AS ONE OF THE MAIN OFFENDERS FOR RAISING THE PRICE OF PRIMERAL A MEDICINE TO HELP DIGESTION BY 16128 FROM OCTOBER 1991 TO NOVEMBER 1992 BUT GENERAL MANAGER LIVIO CUZZI SAYS PRIMERAL WASN'T EVEN BEING SOLD IN OCTOBER 1991 BECAUSE THE GOVERNMENT SET ITS PRICE WAY BELOW COSTS THE 1991 PRICE THE GOVERNMENT CITES EXISTED ON PAPER NOT IN THE DRUGSTORES HE SAYS LIKE MANY INDUSTRY EXECUTIVES MR CUZZI SAYS THE GOVERNMENT IS TRYING TO MAKE POLITICAL CAPITAL OUT OF THE DRUG PRICE ISSUE AND SAYS ALL IT'S ACHIEVING IS DELAYING INVESTMENTS IN BRAZIL WHO'S GOING TO INVEST IN A COUNTRY WHERE THEY SCREAM ABUSIVE PRICE INCREASE BEFORE LOOKING AT YOUR COSTS HE ASKS DRUG COMPANY EXECUTIVES SAY THE BATTLE WON'T END UNTIL THE GOVERNMENT DECIDES WHETHER IT ACCEPTS A FREE MARKET OR NOT AND WHETHER THE GOVERNMENT OR DRUG COMPANIES SHOULD BE RESPONSIBLE FOR PROVIDING THOSE IN NEED WITH AFFORDABLE MEDICINE SAYS JOSE EDUARDO BANDEIRA DE MELLO EXECUTIVE VICE PRESIDENT OF ABIFARMA A TRADE GROUP OF THE MAJOR DRUG COMPANIES IN BRAZIL WE HAVE TO CHOOSE IF WE'RE A SOCIALIST COUNTRY OR A CAPITALIST ONE THE GOVERNMENT WANTS THE EFFICIENCY AND QUALITY OF CAPITALISM AND SOCIALIST PRICES 9302030107 930203 CORPORATE FOCUS FILENET TO SWITCH STRATEGY IN WAKE OF 4THPERIOD WOES COMPUTER FIRM MUST REINVENT' ITSELF AFTER CHANGES IN INDUSTRY IT FOUNDED BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL IRVINE CALIF FILENET CORP WHICH PIONEERED COMPUTERIZED SYSTEMS THAT STORE IMAGES OF DOCUMENTS MAKES A BUSINESS OF ANALYZING WORK PATTERNS IN OTHER PEOPLE'S OFFICES BUT THESE DAYS THE COMPANY IS STRUGGLING WITH ITS OWN BUSINESS PATTERNS FILENET STUNNED INVESTORS LAST MONTH WITH AN ANNOUNCEMENT THAT IT EXPECTS TO REPORT A FOURTHQUARTER LOSS AND LOWER REVENUE WITHIN HOURS OF THE ANNOUNCEMENT FILENET'S SHARES SHED A THIRD OF THEIR VALUE PLUNGING 775 TO END THE DAY AT 15 A SHARE SINCE THEN THE STOCK HAS RECOVERED ONLY SLIGHTLY CLOSING YESTERDAY AT 1525 IN NATIONAL OVERTHECOUNTER TRADING FOR THE 1991 FOURTH QUARTER THE COMPANY REPORTED NET INCOME OF 33 MILLION OR 30 CENTS A SHARE ON REVENUE OF 37 MILLION FILENET SAID A SUDDEN EVAPORATION OF ORDERS IN DECEMBER CAUGHT MANAGEMENT OFF GUARD ECONOMIC PROBLEMS IN EUROPE AND A SLOW US RECOVERY AFFECT OPERATIONS THE COMPANY SAID CUSTOMERS HAVE BEEN DELAYING EXPENSIVE PURCHASES OF CUTTINGEDGE COMPUTER EQUIPMENT IT ADDED BUT A CLOSER LOOK REVEALS MORE PROBLEMS THAN JUST THE ECONOMY FILENET APPEARS TO BE FACING A STRUGGLE ALL TOO FAMILIAR TO TECHNOLOGICAL PIONEERS A GAGGLE OF NEW RIVALS AND A SWIFTLY CHANGING INDUSTRY THAT THREATENS THE COMPANY THAT FOUNDED IT CAUGHT IN A TRIANGLE OF FASTCHANGING TECHNOLOGY PRICE COMPETITION AND THE POOR ECONOMY FILENET IS TRYING TO CHANGE FROM BEING A BUSINESS BASED ON ELABORATE AND ONCE VERY PROFITABLE ELECTRONIC HARDWARE TO ONE PROMOTING SOFTWARE THAT BARELY A YEAR AGO WAS ALMOST THROWN ON THE BACK OF THE TRUCK WITH FILENET'S EQUIPMENT SAYS JORDAN LIBIT FILENET'S VICE PRESIDENT OF MARKETING IN EFFECT FILENET MUST REINVENT ITSELF SAYS MARY HAMWAY A SENIOR ANALYST WITH NEW SCIENCE ASSOCIATES INC A RESEARCH AND CONSULTING CONCERN BASED IN WESTPORT CONN IN ONE SUCH EFFORT FILENET RECENTLY AGREED WITH HEWLETTPACKARD CO TO MAKE A VERSION OF ITS SOFTWARE THAT WILL RUN ON HP'S WIDELY USED COMPUTERS THE TWO COMPANIES SET AN AGREEMENT TO COOPERATIVELY MARKET THAT NEW SOFTWAREHARDWARE SYSTEM THE PACT COULD SUBSTANTIALLY BOOST FILENET'S MARKETING POTENTIAL BUT LIKELY WON'T PRODUCE REVENUE BEFORE THIS YEAR'S THIRD QUARTER COMPANY OFFICIALS SAY FILENET'S NEW STRATEGY INCLUDES BUYING EQUIPMENT THAT IT ONCE MADE ITSELF FOOTSTEPS NOW ECHO IN THE COMPANY'S VAST CLEAN ASSEMBLY ROOM OBSOLETE COMPUTER MONITORS STARE BLANKLY FROM WORK TABLES FILENET PLANS TO CUT ITS 1000PERSON WORK FORCE BY ABOUT 150 IT ALSO IS EXPLORING A VARIETY OF RELATIONSHIPS WITH HARDWARE MANUFACTURERS BEYOND HEWLETTPACKARD THE WORLD IS CHANGING AND THAT'S WHY WE'RE CHANGING SAYS TED SMITH FILENET'S 62YEAROLD CHAIRMAN PRESIDENT AND FOUNDER BARELY A DECADE AGO FILENET LEAD THE CHANGES PIONEERING COMPUTERIZED STORAGE AND RETRIEVAL OF PICTURES OF DOCUMENTS RATHER THAN TYPED CHARACTERS FILENET CREATED SPEEDY EQUIPMENT OF ITS OWN DESIGN THAT SURPASSED WHAT WAS THEN THE GENERAL STATE OF THE ART ITS SYSTEMS SCANNED AND STORED IMAGES ON PAPER IN DIGITAL FORM ON LASERREADABLE PLASTIC DISKS A LARGER VERSION OF MUSIC COMPACT DISKS THE COMPANY CREATED A JUKEBOX DESIGN A SIXFOOT TALL BOX IN WHICH A COMPUTERCONTROLLED ARM SELECTED NOT AMONG TOP10 TUNES BUT HUNDREDS OF SILVERY OPTICAL DISKS ON WHICH IMAGES OF MILLIONS OF DOCUMENTS WERE STORED EACH JUKEBOX COULD HOLD DOCUMENT IMAGES EQUALING THE CONTENTS OF SOME 1700 FOURDRAWER FILE CABINETS THE COMPONENTS OF A DOCUMENT IMAGING SYSTEM REMAIN ROUGHLY THE SAME TODAY THOUGH FAR FASTER AND MORE CAPACIOUS FILENET'S EARLY SYSTEMS WERE EXPENSIVE ROUGHLY 500000 FOR EQUIPMENT THAT MIGHT SERVE NO MORE THAN THREE DOZEN CLERKS TODAY SUCH A SYSTEM MIGHT COST LESS THAN TWOTHIRDS OF THAT THE EARLY SYSTEMS WERE A HARD SELL MARKETING WAS MOSTLY MISSIONARY WORK INTRODUCING PEOPLE TO THE IDEA OF THE PRODUCT ANALYSTS SAY THAT STARTING WITH ITS FIRST INSTALLATION IN 1985 FILENET DID ITS JOB WELL FILENET REALLY BUILT ITS REPUTATION ON SUPREME CUSTOMER SUPPORT AND SUPERB HANDHOLDING SAYS PAMELA BLISS A SENIOR ANALYST AT DATAQUEST INC A RESEARCH FIRM IN SAN JOSE CALIF THOUGH INTERNATIONAL BUSINESS MACHINES CORP ENTERED THE BUSINESS IN 1988 AND TODAY SHIPS FAR MORE SYSTEMS THAN ANY OTHER COMPANY MS BLISS SAYS FILENET ESTABLISHED ITSELF AS THE INDUSTRY'S CADILLAC FIRM IBM'S ARRIVAL STOLE SOME OF FILENET'S THUNDER AND WANG LABORATORIES NOW IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS PRODUCED EVERMORE PROFICIENT PRODUCTS BUT FILENET REMAINED A LEADING FORCE IN THE FASTGROWING BUSINESS OFFERING ELABORATE FULL SYSTEMS IT COMPELLED CUSTOMERS TO BUY ENTIRE SETS OF HARDWARE FROM THE COMPANYRIGHT DOWN TO ITS CUSTOM WORK STATIONS FOR THE CLERKS BUT AS PC PRICES PLUMMETED AND THEIR COMPUTING POWER INCREASED FILENET'S CUSTOMERS DEMANDED THE RIGHT TO BUY COMPUTER WORK STATIONS DIRECTLY FROM OUTSIDE VENDORS AND AT LOWER PRICES FILENET HAD NO CHOICE BUT TO ACCEDE CUSTOMER DEMAND FOR MORE OPEN SYSTEMS INCREASED AND LAST YEAR FILENET GAVE UP ITS LINE OF EXPENSIVE CUSTOMIZED COMPUTERS TURNING TO IBM AND OTHER OUTSIDE VENDORS FOR ALMOST ALL COMPONENTS NOW SAYS MR SMITH FILENET'S CHIEF THE COMPANY PLANS TO LEAN INCREASINGLY ON SOFTWARE SALES SOFTWARE WAS ALWAYS THE IMPORTANT VALUE IN OUR SYSTEMS HE SAYS ALTHOUGH IT WAS BUNDLED INTO THE OVERALL PRICE NOW FILENET PLANS TO CHARGE SEPARATELY FOR ITS ELABORATE COMPUTER PROGRAMS WHICH ARE DESIGNED TO FLEXIBLY CONTROL WORK FLOW THE PATTERN IN WHICH ROUTINE DOCUMENTS ARE HANDLED IN A DEPARTMENT FROM AS LITTLE AS 5 OF REVENUE TWO YEARS AGO SOFTWARE GREW TO MORE THAN 30 IN THE FOURTH QUARTER FILENET SAYS THE FIRM SAYS THAT IN ITS LATEST SYSTEM SALES SOFTWARE ACCOUNTS FOR 50 OF REVENUE EVEN AS FILENET SHIFTS ITS STRATEGY ITS COMPETITION HAS BEEN GROWING SMALLER COMPETITORS HAVE BEEN DEVISING PROGRAMS THAT MAKE USE OF LOCAL AREA NETWORKS INTERWIRED SETS OF PERSONAL COMPUTERS THAT CUSTOMERS MAY ALREADY HAVE IN PLACE WE'RE SAYING THAT WE'LL COME IN AND PROVIDE A SOFTWARE SOLUTION ON TOP OF YOUR EXISTING HARDWARE SAYS CAMERON KHEIROLOMOOM CHAIRMAN AND CHIEF EXECUTIVE OF CLOSELY HELD VIEWSTAR CORP IN EMERYVILLE CALIF VIEWSTAR HAS BEEN AN ADVOCATE OF SOCALLED OPEN SYSTEMS FOR DOCUMENT IMAGE PROCESSING AND IS EMERGING AS A STRONG RIVAL TO FILENET MORE THREATENING TO ALL COMPANIES IN THE FIELD MAY BE SOME DISSATISFACTION WITH DOCUMENT IMAGING ITSELF SOME COMPANIES ARE FINDING PROMISED PRODUCTIVITY GAINS HARD TO ATTAIN IN A RECENT SURVEY DATAQUEST'S MS BLISS SAYS SHE FOUND A FEW COMPANIES THAT DROPPED DOCUMENT IMAGING SYSTEMS ALTOGETHER ALTHOUGH SOME WERE USING THEM ON JUST A TRIAL BASIS 9302030106 930203 FROZEN FOOD EXPRESS EXPECTS TO POST RISE IN 4THQUARTER NET DALLAS FROZEN FOOD EXPRESS INDUSTRIES INC SAID IT EXPECTS TO REPORT THAT FOURTHQUARTER EARNINGS ROSE ABOUT 33 STONEY M STUBBS JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THE TRUCKING COMPANY CITED GRADUAL INCREASES IN THE SIZE OF ITS REFRIGERATED TRUCKING FLEET SINCE 1990 AS LARGELY RESPONSIBLE FOR EXPECTED NET INCOME OF 16 MILLION OR 17 CENTS A COMMON SHARE COMPARED WITH 12 MILLION OR 13 CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES REFLECT A 3FOR2 STOCK SPLIT IN FEBRUARY 1992 AND 4FOR3 STOCK SPLIT IN SEPTEMBER THE COMPANY HAS 95 MILLION SHARES OUTSTANDING REVENUE ROSE ABOUT 17 TO 50 MILLION FROM 43 MILLION MR STUBBS SAID HE SAID FROZEN FOOD EXPRESS ENLARGED ITS FLEET BY 75 TRUCKS OR ABOUT 6 IN 1992 FOR THE FIRST HALF OF THE YEAR WE DIDN'T HAVE ENOUGH DRIVERS TO FILL ALL OUR SEATS DURING THE FIRST SIX MONTHS WE HAD AS MANY AS 40 TRACTORS PARKED BECAUSE WE DIDN'T HAVE ENOUGH DRIVERS SAID MR STUBBS FROZEN FOOD'S IMPROVED EARNINGS ALSO RESULTED FROM LOWER INSURANCE AND CLAIMS COSTS NOT A WHOLE LOT LOWER JUST A LITTLE BIT BUT TRUCKING IS A NICKELS AND DIMES BUSINESS SAID MR STUBBS FOR ALL OF 1992 THE COMPANY EXPECTS TO REPORT THAT NET ROSE ABOUT 36 TO ROUGHLY 7 MILLION OR 75 CENTS A SHARE COMPARED WITH 52 MILLION OR 57 CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES REFLECT THE TWO STOCK SPLITS LAST YEAR REVENUE ROSE 7 TO 10 TO THE RANGE OF 190 MILLION TO 195 MILLION FROM 177 MILLION A YEAR EARLIER 9302030105 930203 GENERAL INSTRUMENT BUYOUT INVESTORS TO SELL SHARES CHICAGO LEVERAGED BUYOUT INVESTORS IN GENERAL INSTRUMENT CORP STAND TO REAP PROFITS OF 250 MILLION OR MORE IN A PROPOSED OFFERING OF 10 MILLION COMMON SHARES THE STOCK OF THE MAKER OF CABLE AND SATELLITETV EQUIPMENT SURGED YESTERDAY 2625 TO CLOSE AT 31875 IN LATE NEW YORK STOCK EXCHANGE TRADING THE COMPANY SAID ANALYSTS' ESTIMATES FOR IMPROVED FOURTHQUARTER RESULTS WERE ACCURATE FORSTMANN LITTLE & CO THE NEW YORK INVESTMENT FIRM THAT TOOK GENERAL INSTRUMENT PRIVATE IN 1990 PAID 550 A SHARE FOR ITS CONTROLLING STAKE THE OFFERING FOLLOWS AN INITIAL SALE OF 22 MILLION SHARES BY THE COMPANY TO THE PUBLIC LAST JUNE AT 15 SINCE THEN IMPROVING RESULTS HAVE PUSHED THE STOCK PRICE UP THE COMPANY SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER THE 10 MILLION SHARES ALL HELD BY FORSTMANN LITTLE AFFILIATES OR CURRENT OR FORMER GENERAL INSTRUMENT MANAGEMENT THE COMPANY SAID IT WOULD REPORT FOURTHQUARTER RESULTS TODAY ANALYSTS HAVE RAISED PROFIT ESTIMATES IN RECENT WEEKS TO ABOUT 10 CENTS A SHARE VERSUS A YEAREARLIER LOSS OF 53 CENTS A SHARE 9302030104 930203 RULE OF LAW PRESIDENTIAL POWER AND GAYS IN THE MILITARY BY SANFORD LEVINSON IN THE NATIONAL DEBATE OVER WHETHER HOMOSEXUALS SHOULD BE ALLOWED TO SERVE IN THE MILITARY LAST WEEK'S MOST SIGNIFICANT EVENT MAY NOT HAVE BEEN PRESIDENT CLINTON'S DECISION TO DELAY AN EXECUTIVE ORDER LIFTING THE MILITARY'S BAN ON GAYS BUT HIS DECISION TO SUPPORT A RULING BY A FEDERAL DISTRICT JUDGE IN LOS ANGELES THAT THE BAN IS UNCONSTITUTIONAL HIS ADMINISTRATION'S APPARENT DECISION NOT TO APPEAL THE RULING HAS THE SAME EFFECT AS AN EXECUTIVE ORDER INDEED WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID THE RULING APPLIES NATIONWIDE THAT'S THE OPINION OF THE WHITE HOUSE COUNSEL BY NOT APPEALING THE DECISION THE ADMINISTRATION IS INDICATING ITS VIEW THAT JUDGE TERRY HATTER WAS CORRECT IN HIS INTERPRETATION OF THE CONSTITUTION PUT IN OTHER WORDS THE EXECUTIVE BRANCH IS ACTING ON ITS OWN INTERPRETATION OF THE CONSTITUTION RATHER THAN RELYING ON FULLSCALE JUDICIAL REVIEW BY APPELLATE COURTS THIS RAISES ONE OF THE MOST FUNDAMENTAL ISSUES OF OUR CONSTITUTIONAL POLICY IS THE APPELLATE JUDICIARY THE ONLY AUTHORITATIVE INTERPRETER OF THE CONSTITUTION MAY A PRESIDENT WITH HIS OWN VIEW OF THE CONSTITUTION WHO FINDS A COMPATIBLE DISTRICT JUDGE AVOID FURTHER JUDICIAL REVIEW PARTICULARLY WHEN THE APPELLATE JUDICIARY IS DOMINATED BY JUDGES HOSTILE TO THAT VIEW INDEED MUST A PRESIDENT SEEK JUDICIAL REVIEW AT ALL RATHER THAN ACT ON HIS OWN UNDERSTANDING OF WHAT THE CONSTITUTION REQUIRES AS HAS BEEN WELL DOCUMENTED ON THE EDITORIAL PAGES OF THIS NEWSPAPER PRESIDENTS FROM THOMAS JEFFERSON TO RONALD REAGAN HAVE REJECTED A JUDICIAL MONOPOLY ON CONSTITUTIONAL INTERPRETATION IN THE CASE THAT WAS DECIDED FRIDAY JUDGE HATTER RULED THAT THE MILITARY'S BAN ON HOMOSEXUALS VIOLATES THE CONSTITUTION'S GUARANTEE OF EQUAL PROTECTION UNDER THE LAW HE ORDERED THE NAVY TO REINSTATE PETTY OFFICER KEITH MEINHOLD WHO HAD BEEN DISMISSED FOLLOWING HIS DISCLOSURE ON ABC THAT HE WAS GAY PETTY OFFICER MEINHOLD WHO HAD SERVED IN THE NAVY FOR 12 YEARS HAD RECEIVED OUTSTANDING EVALUATIONS AND HAS NEVER BEEN THE SUBJECT OF DISCIPLINARY ACTION JUDGE HATTER WROTE IN HIS OPINION HE WAS IN EFFECT BEING FIRED FROM THE MILITARY SOLELY FOR HIS STATUS AS A GAY PETTY OFFICER MEINHOLD'S CASE IS DIFFERENT FROM A NINTH CIRCUIT DECISION ON A SIMILAR CASE ALSO ARISING IN CALIFORNIA IN 1989 THE COURT DISALLOWED THE ARMY'S REFUSAL TO REENLIST PERRY WATKINS A MUCH COMMENDED ARMY SERGEANT THAT CASE IS DISTINGUISHABLE FROM THIS ONE HOWEVER FOR THE COURT EMPHASIZED THAT THE ARMY HAD KNOWN OF SGT WATKINS'S SEXUAL PREFERENCE WHEN IT ACCEPTED HIS EARLIER REENLISTMENT AND WAS THEREFORE ESTOPPED FROM SUBSEQUENTLY FORCING HIM OUT OF THE ARMY ESTOPPEL AGAINST THE GOVERNMENT IS RARE AND SOME VIEWED THE WATKINS DECISION AS AN EXPRESSION OF IMPATIENCE WITH BUSH ADMINISTRATION ZEALOTS WHO WOULD BROOK NO COMPROMISE ON THE DELICATE ISSUE OF GAYS IN THE MILITARY TRANSFORMING PETTY OFFICER MEINHOLD'S CASE INTO A NATIONWIDE CLASS ACTION ON BEHALF OF ALL HOMOSEXUALS AND LESBIANS WHO WISH TO JOIN OR REMAIN IN THE ARMED FORCES JUDGE HATTER ENJOINED THE DEFENSE DEPARTMENT FROM DISCHARGING OR DENYING ENLISTMENT TO ANY PERSON BASED ON SEXUAL ORIENTATION IN THE ABSENCE OF SEXUAL CONDUCT WHICH INTERFERES WITH THE MILITARY MISSION OF THE ARMED FORCES OF THE UNITED STATES BUT THIS IS NOT THE MOST EXTRAORDINARY FEATURE OF JUDGE HATTER'S BRIEF TWO AND A HALF PAGES DECISION MOST REMARKABLE IS HIS USE OF THE RATIONAL BASIS TEST TO STRIKE DOWN THE DEFENSE DEPARTMENT REGULATION THIS IS THE WEAKEST TEST THAT CAN BE APPLIED TO CHALLENGED LEGISLATION INDEED IT IS SOMETIMES CALLED THE NONLUNACY TEST FOR COURTS HAVE REPEATEDLY INSISTED THAT A STATUTE'S DEFENDERS NEED SHOW ONLY THAT A RATIONAL PERSON MIGHT BELIEVE THAT THE LEGISLATIVE DECISION IS EFFICACIOUS TO SOME LEGITIMATE END EVEN IF MANY OR MOST OTHER RATIONAL PEOPLE DISAGREED FEW LAWS HAVE FAILED THIS TEST JUDGE HATTER HOWEVER HELD THAT THE DEFENSE DEPARTMENT POLICY WAS IRRATIONAL AFTER BRIEF REFERENCE TO INTERNAL DEFENSE DEPARTMENT STUDIES A TV STATEMENT BY FORMER DEFENSE SECRETARY DICK CHENEY AND THAT THE US AND BRITAIN ARE THE ONLY NATO COUNTRIES TO BAN GAYS AND LESBIANS FROM THE MILITARY HE QUOTED LAWRENCE KORB A FORMER REAGAN DEFENSE DEPARTMENT OFFICIAL AND ARCHITECT OF THE CURRENT POLICY THERE IS MR KORB WAS QUOTED AS SAYING NO LONGER ANY JUSTIFICATION FOR THE ARMED SERVICES' CURRENT BAN ON HOMOSEXUALS SERVING IN THE MILITARY AND EACH OF THE JUSTIFICATIONS IN SUPPORT OF THIS POLICY IS WITHOUT FACTUAL FOUNDATION THEREFORE MR KORB SAID THERE IS NO LONGER ANY RATIONAL BASIS FOR THE POLICY A CONCLUSION JUDGE HATTER EAGERLY ENDORSED IT IS ALMOST UNIMAGINABLE THAT JUDGE HATTER'S OPINION WOULD SURVIVE AN APPEAL AN APPEALS COURT WOULD ALMOST CERTAINLY REJECT THE CONCLUSION THAT THE DEFENSE DEPARTMENT POLICY LACKS A RATIONAL BASIS MOST PROPONENTS OF GAY AND LESBIAN CONSTITUTIONAL RIGHTS IMPLICITLY AGREE THAT SOMETHING MORE THAN RATIONAL BASIS REVIEW IS NEEDED AS A PRACTICAL LEGAL MATTER INSOFAR AS THEY HAVE STRESSED THE NECESSITY OF FINDING CLASSIFICATION BY SEXUAL PREFERENCE TO BE SUSPECT SUCH A FINDING WOULD THEN REQUIRE THE STATE TO SHOW A COMPELLING STATE INTEREST FOR ITS LEGISLATION THIS IS A FAR MORE DIFFICULT STANDARD TO SATISFY THAN THE FECKLESS MINIMUM RATIONALITY TEST AN EARLIER NINTH CIRCUIT CASE REJECTED SUCH AN ARGUMENT HOWEVER ANOTHER BARRIER IS THE SUPREME COURT'S 1986 DECISION BOWERS V HARDWICK WHICH UPHELD GEORGIA'S SODOMY LAW MOREOVER THE SUPREME COURT HAS EXHIBITED EXTRAORDINARY DEFERENCE TO THE MILITARY BUT PERHAPS JUDGE HATTER WAS NOT CONCERNED ABOUT POSSIBLE APPELLATE REVIEW BECAUSE OF A VERY SIMPLE FACT AT THE TIME HE ISSUED HIS OPINION HE COULD HAVE MADE A CALCULATED GUESS THAT THE CLINTON ADMINISTRATION WOULD NOT BE APPEALING HIS DECISION HOWEVER BROAD AND UNCONVENTIONAL THIS BRINGS US BACK TO EXECUTIVE POWER UNDER OTHER CIRCUMSTANCES THE POWER OF THE PRESIDENT TO INTERPRET THE CONSTITUTION AS HE SEES IT MIGHT NOT BE SO IMPORTANT BECAUSE OTHER LITIGANTS WOULD BE ABLE TO TEST THE VARIOUS POSITIONS IN THE COURTS HERE THOUGH THERE IS NO ONE TO DEFEND DEFENSE DEPARTMENT POLICY IF THE PRESIDENT HIMSELF WILL NOT DO SO THE ADMINISTRATION'S SEEMING DECISION NOT TO APPEAL JUDGE HATTER'S RULING IS ABOUT MORE THAN THE ELIGIBILITY OF GAYS AND LESBIANS TO SERVE THEIR COUNTRY IN THE ARMED FORCES A GOAL MANY INCLUDING MYSELF SHARE IT IS ALSO ABOUT THE QUESTIONABLE NOTION OF JUDICIAL SUPREMACY AND THE DUTY OF THE PRESIDENT TO ENGAGE IN INDEPENDENT CONSTITUTIONAL INTERPRETATION MR LEVINSON IS A LAW PROFESSOR AT THE UNIVERSITY OF TEXAS LAW SCHOOL 9302030103 930203 BUSINESS BRIEF REEBOK INTERNATIONAL LTD ATHLETICSHOE MAKER POSTS LOSS FOR THE FOURTH QUARTER REEBOK INTERNATIONAL LTD REPORTED A FOURTHQUARTER LOSS OF 677 MILLION AFTER ONETIME CHARGES OF 1354 MILLION ON A 125 SALES INCREASE THE STOUGHTON MASS ATHLETICSHOE COMPANY ALSO SAID THE ORDER BACKLOG FOR ITS REEBOK BRAND DECLINED 6 AS OF YEAR END FROM THE END OF 1991 ALTHOUGH ORDERS WOULD HAVE RISEN 2 EXCLUDING CURRENCY TRANSLATIONS SALES ROSE TO 6601 MILLION FROM 5866 MILLION IN 1992 NET INCOME WAS 1148 MILLION OR 124 A SHARE AFTER THE CHARGES COMPARED WITH NET OF 2347 MILLION OR 237 A SHARE IN 1991 SALES ROSE 105 TO 302 BILLION FROM 273 BILLION 9302030102 930203 LETTERS TO THE EDITOR THE ROAD TO RUIN IN THE RAIN FOREST IN YOUR JAN 5 ARTICLE ON MAXUS ENERGY CORP'S ECUADOR PROJECT DRILLERS ARE ADAPTING TO THE RAIN FOREST IN WHICH YOU POINT OUT THE DANGERS OF DRILLING IN A RAINFOREST ECOSYSTEM YOU STATE MAXUS ALSO PLEDGES TO ABIDE BY RAINFOREST GUIDELINES ESTABLISHED BY INDUSTRY AND RAINFOREST EXPERTS THAT URGE THAT WHERE PRACTICAL CONSTRUCTION OF ROADS SHOULD BE AVOIDED' MAXUS HAS ALREADY BEGUN BUILDING A 108 1/2MILE ROAD THAT WILL PENETRATE THE RESERVE OF THE HUAORANI INDIANS ECUADOR'S MOST VULNERABLE INDIGENOUS PEOPLE AS WELL AS THE YASUNI NATIONAL PARK WHICH HAS BEEN OFFICIALLY DESIGNATED A WORLD BIOSPHERE RESERVE FOR ITS UNIQUE BIODIVERSITY APPARENTLY THE INDUSTRY RECOGNIZES THAT ROADS BUILT IN THE AMAZON RAIN FOREST HAVE PROVIDED ACCESS FOR LUMBER CUTTERS AND CATTLE RANCHERS AND FOR THOUSANDS OF LANDLESS FARMERS SEARCHING FOR LAND THE IMPACT ON THE HUAORANI PEOPLE WHO OPPOSE MAXUS'S PROJECT AND ON THE RAINFOREST ECOSYSTEM WILL BE DEVASTATING AND IRREVERSIBLE IF MAXUS'S ROAD CONSTRUCTION IS ALLOWED TO CONTINUE 9302030101 930203 JOHNSON & JOHNSON 4THQUARTER NET ROSE 12 ON NEW PRODUCTS NEW BRUNSWICK NJ JOHNSON & JOHNSON POSTED A 12 INCREASE IN FOURTHQUARTER EARNINGS DRIVEN BY SALES OF NEW PRODUCTS JOHNSON & JOHNSON HAD NET INCOME OF 307 MILLION OR 47 CENTS A SHARE IN THE FOURTH QUARTER AFTER 9 MILLION IN COSTS ASSOCIATED WITH ACCOUNTING CHANGES YEARAGO NET WAS 274 MILLION OR 41 CENTS A SHARE SALES GREW 11 TO 35 BILLION FOR THE YEAR EARNINGS DECLINED 30 TO 1 BILLION OR 156 A SHARE AFTER A 595 MILLION CHARGE FOR ACCOUNTING CHANGES EXCLUDING THE CHARGE PROFIT ROSE 14 TO 17 BILLION OR 253 A SHARE SALES INCREASED 105 TO 1375 BILLION ARVIND DESAI ANALYST WITH MEHTA & ISALY SAID HE WAS PARTICULARLY IMPRESSED WITH THE GROWTH IN JOHNSON & JOHNSON'S DOMESTIC PHARMACEUTICAL BUSINESS WHICH GREW 22 TO 468 MILLION IN THE FOURTH QUARTER HE ATTRIBUTED THE GROWTH TO NEW PRODUCTS SUCH AS ANTIBIOTIC FLOXIN ANEMIA DRUG PROCRIT ANTIFUNGAL AGENT SPORONOX AND PREPULSID A GASTROINTESTINAL DRUG THE COMPANY'S INTERNATIONAL PHARMACEUTICAL SALES GROWTH OF 12 IN THE QUARTER WAS NOTABLE BECAUSE THE INTERNATIONAL MARKETS ARE HIGHLY REGULATED MR DESAI SAID MOREOVER INTERNATIONAL SALES ACCOUNT FOR OVER 60 OF JOHNSON & JOHNSON'S PHARMACEUTICAL BUSINESS WHICH MR DESAI SAID PUTS THE COMPANY IN A STRONG POSITION TO PERFORM WELL REGARDLESS OF WHAT PROPOSALS ARE BROUGHT IN BY THE CLINTON ADMINISTRATION ECONOMIC WEAKNESS OVERSEAS HOWEVER HURT THE QUARTER'S INTERNATIONAL CONSUMER SEGMENT WHERE SALES DECLINED 15 TO 519 BILLION MR DESAI SAID US CONSUMER SALES ROSE 104 TO 625 MILLION 9302030100 930203 INVESTMENT TAX CREDIT PLANNED FOR STIMULUS CLINTON ECONOMIC PACKAGE WOULD INCLUDE BREAK RETROACTIVE TO DEC 3 BY DAVIS WESSEL AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE SAID PRESIDENT CLINTON PLANS TO INCLUDE AN INVESTMENT TAX CREDIT THAT IS RETROACTIVE TO DEC 3 1992 IN THE ECONOMIC PROPOSAL HE IS TO UNVEIL LATER THIS MONTH THE PRESIDENT'S ECONOMICSTIMULUS PACKAGE WILL BE DIVIDED BETWEEN A SPENDINGINVESTMENT PROGRAM ON JOBS IN THE SHORT TERM AND WILL ALSO INCLUDE PRIVATESECTOR INCENTIVES LIKE AN INVESTMENT TAX CREDIT AS PRESIDENT CLINTON TALKED ABOUT DURING THE CAMPAIGN SAID GEORGE STEPHANOPOULOS WHITE HOUSE COMMUNICATIONS DIRECTOR BUT THE PRESIDENT HASN'T MADE ANY FINAL DECISIONS ON NUMBERS THE SPOKESMAN'S COMMENTS ABOUT THE INVESTMENT TAX CREDIT CONFIRM WHAT HAS BEEN WIDELY EXPECTED THE WHITE HOUSE'S TENTATIVE LEGISLATIVE PLAN IS TO PUSH THE ADDED SPENDING THROUGH CONGRESS QUICKLY AND TO EMBED THE TAX BREAK ALONG WITH TAX INCREASES AND SPENDING CUTS IN A DEFICITREDUCTION BILL THAT REQUIRES MORE TIME MR CLINTON INTENDS TO BEGIN SELLING HIS ECONOMIC PLAN SOON CONGRESSIONAL OFFICIALS SAID THE PRESIDENT WILL CONDUCT A TOWN HALL MEETING IN A CITY OUTSIDE THE CAPITAL NEXT WEEK HE WILL USE THE MEETING TO TALK ABOUT HIS STILLNASCENT ECONOMIC PROPOSALS AND GET VOTERS' REACTIONS MUCH AS HE DID DURING THE ELECTION CAMPAIGN MR CLINTON'S ADVISERS POINT OUT THAT THE ECONOMY DESPITE RECENT SIGNS OF STRENGTH STILL ISN'T CREATING MANY NEW JOBS A GOOD SOLID STIMULUS PACKAGE CAN PROBABLY GET 200000 TO 500000 JOBS WITHIN A YEAR MR STEPHANOPOULOS SAID SOME OF THE NATION'S GOVERNORS SAID THIS WEEK THAT MR CLINTON TOLD THEM THAT HE IS CONSIDERING A STIMULUS PACKAGE THAT COULD AMOUNT TO AS MUCH AS 30 BILLION AND SOME CONGRESSIONAL DEMOCRATS SAID THEY HAVE HEARD THE SAME FIGURE FROM THE ADMINISTRATION MR STEPHANOPOULOS SAID YESTERDAY THAT FIGURE IS IN THE BALLPARK ABOUT 16 BILLION OF THAT WOULD BE ADDED SPENDING AUTHORITY FOR THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 AND THE REST WOULD BE IN TAX BREAKS ADMINISTRATION OFFICIALS SAID THE 14 BILLION OR 15 BILLION IN TAX BREAKS INCLUDES MORE THAN THE INVESTMENT TAX CREDIT THE CREDIT THE ADMINISTRATION IS WORKING ON WOULD COST LESS THAN 15 BILLION IN THE FIRST YEAR THE ADMINISTRATION HAS PLEDGED TO EXTEND THE RESEARCHANDDEVELOPMENT TAX CREDIT WHICH EXPIRED LAST JULY 1 EXTENDING IT TO THE END OF THE FISCAL YEAR WOULD COST ABOUT 825 MILLION ALTHOUGH DETAILS AREN'T FINAL THE ADMINISTRATION IS CONSIDERING AN INVESTMENT TAX CREDIT THAT WOULD APPLY ONLY TO PURCHASES OF PLANT AND EQUIPMENT ABOVE A CERTAIN THRESHOLD DURING THE CAMPAIGN FOR INSTANCE CLINTON AIDES TALKED ABOUT A 10 CREDIT THAT WOULD APPLY ONLY TO INVESTMENTS IN EXCESS OF 80 OF THE INVESTMENTS MADE BY A COMPANY IN 1992 WITH INDICATIONS THAT BUSINESSES WERE DELAYING EQUIPMENT PURCHASES SO THAT THEY WOULD BE ELIGIBLE FOR A TAX CREDIT LLOYD BENTSEN THEN CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND HIS HOUSE COUNTERPART DAN ROSTENKOWSKI SAID LAST MONTH THEY WOULD MAKE SURE ANY INVESTMENT TAX CREDIT WOULD BE RETROACTIVE TO DEC 3 1992 THE PRESIDENT AGREES WITH THEIR JUDGMENT MR STEPHANOPOULOS SAID YESTERDAY THE NATION'S GOVERNORS MEANWHILE CALLED FOR THE ELIMINATION OF THE FEDERAL DEFICIT OVER EIGHT YEARS BY REDUCING DEFENSE AND HEALTHCARE SPENDING AND REDIRECTING DOMESTIC DISCRETIONARY SPENDING TOWARD STRATEGIC INVESTMENT INCLUDING INFRASTRUCTURE JOB TRAINING EDUCATION AND RESEARCH AND DEVELOPMENT BUT THE POLICY STATEMENT BY THE NATIONAL GOVERNORS' ASSOCIATION ISSUED AT ITS WINTER MEETING HERE BARELY TOUCHED THE POLITICALLY EXPLOSIVE ISSUE OF SOCIAL SECURITY IT SPECIFICALLY ELIMINATED LANGUAGE SAYING THAT ALL SPENDING INCLUDING SOCIAL SECURITY SHOULD BE EVALUATED FOR POTENTIAL SAVINGS THE GOVERNORS ALSO RECOMMENDED THAT IF REVENUE INCREASES ARE NECESSARY THEY SHOULD BE LIMITED TO A MAXIMUM OF 1 FOR EACH 275 IN SPENDING CUTS IN A SPEECH TO THE GOVERNORS PRESIDENT CLINTON PROMISED TO MAKE IT EASIER FOR STATES TO EXPERIMENT WITH NEW WELFARE SYSTEMS WHILE THE ADMINISTRATION WORKS ON A FEDERAL OVERHAUL MR CLINTON SAYING NO ONE LIKES THE WELFARE SYSTEM AS IT CURRENTLY EXISTS PLEDGED TO GIVE STATES LEEWAY TO TRY NEW APPROACHES IN MUCH THE SAME WAY THAT HE PROMISED MONDAY TO MAKE IT EASIER FOR STATES TO GET WAIVERS FOR THEIR MEDICAID PROGRAMS HIS REMARKS WERE WARMLY RECEIVED AS EXPECTED HE ANNOUNCED PLANS TO FORM A HIGHLEVEL ADMINISTRATION GROUP TO WORK WITH A PANEL OF STATE OFFICIALS MADE UP OF GOVERNORS STATE WELFARE COMMISSIONERS AND STATE LEGISLATORS TO PROPOSE CHANGES TO THE FEDERAL WELFARE SYSTEM UNDER HIS WELFAREOVERHAUL PLAN OUTLINED DURING THE CAMPAIGN AND REITERATED YESTERDAY WELFARE RECIPIENTS WOULD BE GIVEN EDUCATION AND TRAINING FOR TWO YEARS THEN BE REQUIRED TO GO TO WORK MR CLINTON STRESSED THAT THERE MUST BE A TIME CERTAIN BEYOND WHICH PEOPLE DON'T DRAW A CHECK FOR DOING NOTHING WHEN THEY CAN DO SOMETHING HIS ENDORSEMENT OF TIME LIMITS ON WELFARE HOLDS POLITICAL APPEAL FOR MODERATES AND CONSERVATIVES BUT IS OPPOSED BY SOME LIBERALS WHO ARE WORRIED THAT SOME FAMILIES WOULD SUFFER DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9302030099 930203 REVIEW & OUTLOOK EDITORIAL TAX DEFORM THE TABLE DEPICTED HERE HAS AN INTERESTING STORY TO TELL IT SHOWS WHAT HAPPENED TO INCOME TAXES IN OTHER COUNTRIES AFTER AMERICA'S 1986 TAX REFORM THEY ALL WENT DOWN IN A WORLD OF POROUS BORDERS GOVERNMENTS CAN'T AFFORD TO IGNORE WHAT WORKS AT THE TIME THE LATE JOSEPH PECHMAN OF BROOKINGS CALLED AMERICA'S THE BEST INCOME TAX IN THE WORLD IN 1990 GEORGE BUSH BEGAN THE WORK OF UNRAVELING IT BY RAISING THE TOP RATE TO 31 FROM 28 NOW BILL CLINTON WANTS TO PUSH THE TOP RATE UP TO 36 AND IF YOU'RE LUCKY ENOUGH TO MAKE A MILLION DOLLARS PERHAPS AS AN ENTREPRENEUR WHO CREATED BOTH A SUCCESSFUL NEW HIGHTECH COMPANY AND NEW JOBS FOR THE ECONOMY YOU'LL FACE AN ADDITIONAL SURTAX THAT EFFECTIVELY RAISES THE RATE TO ABOUT 40 SO MUCH FOR THE BOULDER THAT WAS SUPPOSED TO SEAL OFF THE MOUTH OF GUCCI GULCH AS THE HALLWAY OUTSIDE ANY CONGRESSIONAL TAXWRITING COMMITTEE IS KNOWN IT'S A LAW OF POLITICAL NATURE THAT HIGHER RATES STIR UP POWERFUL CONSTITUENCIES THAT LOBBY FOR LOOPHOLES PAT MOYNIHAN THE NEW CHAIRMAN OF SENATE FINANCE EXPLAINED ALL THIS TO TIME MAGAZINE LAST WEEK AT THAT RATE HE SAID OF MR CLINTON'S TAX PLANS ALL THE LOOPHOLES WE ELIMINATED IN THE 1986 TAX BILL WOULD COME BACK LIKE A HYDRAULIC PHENOMENON WE ESTABLISHED A VERY IMPORTANT PRINCIPLE IN THE '86 LAW WE WANT TO DO EVERYTHING WE CAN TO MINIMIZE TAXCODEDRIVEN ECONOMIC ACTIVITY WE SHOULDN'T GO BACKWARD ON THAT PUT DIFFERENTLY DEMOCRATS HAVE UNDERSTOOD THAT THE PRICE THEY HAD TO PAY FOR A STEEPLY PROGRESSIVE TAX SYSTEM WAS TO OPEN LOTS OF LOOPHOLES IN THE UPPER BRACKETS WHERE ALAS THE COUNTRY'S MOST PRODUCTIVE AND INVENTIVE PEOPLE TEND TO LIVE OTHERWISE THE RATES WOULD KILL THE ECONOMY NONETHELESS SOME OF WASHINGTON'S DIMMER BULBS STILL BELIEVE THAT STEEPLY PROGRESSIVE RATES ARE THE STUFF OF FAIRNESS BUT NO MATTER HOW YOU SLICE THE INCOME SCALE THOSE NEARER THE TOP PAY A BIGGER CHUNK OF THE INCOME TAX TODAY THAN THEY DID IN THE HEYDAY OF PROGRESSIVE TAXATION THAT'S BECAUSE WITH LOWER MARGINAL RATES THERE'S LESS REASON TO DODGE THE TAX COLLECTOR BY STUFFING MONEY INTO WINDMILL FARMS AND LLAMA HERDS AND OTHER GIMMICKY TAX HAVENS SOME NUMBERS ARE IN ORDER HERE BETWEEN 1980 AND 1990 THE HIGHEST US RATE FELL TO 28 FROM 70 DURING THE SAME PERIOD THE RICHEST 20TH OF TAXPAYERS SAW THEIR PAYMENTS AS A SHARE OF THE TOTAL BILL RISE BY 18 THE BOTTOM 50 OF TAXPAYERS SAW THEIR SHARE SHRINK BY 15 IT WOULDN'T SURPRISE US NOW IF THE PROPOSED MILLIONAIRE'S SURTAX ACTUALLY ENDS UP LOSING REVENUE UMPTEEN MILLIONS HAD ALREADY SLIPPED AWAY EVEN BEFORE MR CLINTON WAS SWORN IN DISNEY'S MICHAEL EISNER THE PARTNERS AT GOLDMAN SACHS AND OTHER HIGH EARNERS POINTEDLY CASHED OUT A LOT OF THEIR STOCK OPTIONS AND COLLECTED THEIR BONUSES IN DECEMBER TO AVOID THE DEMOCRATS OF COURSE WHAT'S REALLY PROPELLING THE CLINTONITES IS DEFICIT MYOPIA THEY'RE WORRIED ABOUT ROSS PEROT IN 1996 SO WE MAY GET THE STIMULUS OF 31 BILLION IN TAX BREAKS FOR BUSINESS BUT UP TO 50 BILLION IN TAX INCREASES TO FIGHT THE DEFICIT YES THE BUDGET DEFICIT IS A PROBLEM BUT IT'S FOOLISH TO TRY AND SOLVE IT AT THE EXPENSE OF THE ECONOMY THE DEFICIT WILL BE WITH US UNTIL SOMEBODY REFORMS THE PRIORITIES AND PROCESSES OF THE US GOVERNMENT IN THE MEANTIME ONLY A GROWING ECONOMY CAN KEEP IT FROM SWALLOWING US UP AND A GROWING ECONOMY DOESN'T COME FROM A TAX CODE THAT PUNISHES WORK OR MISALLOCATES RESOURCES OTHER WESTERN NATIONS HAVE BEEN GRADUALLY COMING TO THEIR SENSES AS THE TABLE SHOWS THEY ENVIED THE ENTREPRENEURIAL VITALITY AND JOB CREATION OF AMERICA IN THE 1980S MR CLINTON IF HE LIKES THE SOUND OF A SECOND TERM SHOULD ENVY IT TOO AT THE MOMENT THOUGH A LOT OF THE IDEAS SWIRLING AROUND HIM AND HIS ECONOMIC PACKAGE SEEM BETTER SUITED TO IMPORTING WHAT USED TO BE CALLED EUROSCLEROSIS HIS ADVISERS KEEP TALKING ABOUT A EUROSTYLE GASOLINE TAX SOME VERSION OF NATIONAL HEALTH AND STATE DIRECTION OF HIGHTECH THE ADMINISTRATION'S EARLY SIGNALS ON TRADE ARE ALL IN THE WRONG DIRECTION NOW WE HEAR THAT SOME CLINTON TRADE OFFICIALS THINK IT MAKES SENSE TO DOLE OUT IMPORT PROTECTION IN RETURN FOR BUSINESS TAKING ON WELFARE MISSIONS MANY OF EUROPE'S GOVERNMENTS ARE TRYING TO FREE THEMSELVES OF THE KIND OF EUROCRATS WHO USED TO DREAM UP THIS STUFF THAT'S REFLECTED IN THEIR LOWER TAX RATES AS SOME ON THE CLINTON TEAM ATTEMPT REINVENTING OLD EUROPE WE HOPE SOMEONE INSIDE SPEAKS UP ON BEHALF OF ECONOMIC INCENTIVES 9302030098 930203 BUSINESS BRIEF ESYSTEMS INC COMPANY GETS US CONTRACT FOR STUDENT LOAN DATABASE ESYSTEMS INC BRANCHING INTO NONDEFENSERELATED AREAS HAS BEEN AWARDED A 16 MILLION TWOYEAR CONTRACT FROM THE DEPARTMENT OF EDUCATION FOR A NATIONAL STUDENT LOANS AND GRANTS DATABASE THE CONTRACT INCLUDES THREE ONEYEAR OPTIONS THAT ESYSTEMS SAID WERE EXPECTED TO INCREASE THE TOTAL VALUE TO 50 MILLION ESYSTEMS SAID THE SYSTEM WILL PRESCREEN REQUESTS FOR STUDENT LOANS AND GRANTS AND WILL PROVIDE REPORTING AND QUERY CAPABILITIES AIMED AT REDUCING DEFAULTS IT IS THE COMPANY'S SECOND CONTRACT FROM THE EDUCATION DEPARTMENT IN MAY ESYSTEMS RECEIVED A DATA PROCESSING CONTRACT FOR THE GOVERNMENT'S STAFFORD LOAN PROGRAM FORMERLY THE GUARANTEED STUDENT LOAN PROGRAM ESYSTEMS IS A DEFENSE ELECTRONICS CONCERN BASED IN DALLAS 9302030097 930203 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 1/4 HIGH 3 LOW 3 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 59 DAYS 310 60 TO 89 DAYS 312 90 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 322 180 TO 239 DAYS 328 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 316 30 DAYS 319 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 277 THREE MONTHS 287 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 303 ONE MONTH 312 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 305 60 DAYS 307 90 DAYS 310 120 DAYS 314 150 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 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 754 60 DAYS 762 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 760 60 DAYS 769 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 9302030096 930203 PRICING HEALTH CARE THE FOLLY OF BUYING HEALTH CARE AT THE COMPANY STORE BY MILTON FRIEDMAN TOWARD THE END OF WORLD WAR II I SERVED AS AN INSTRUCTOR IN A QUALITYCONTROL COURSE FOR NAVY PROCUREMENT OFFICERS IT WAS HELD IN HERSHEY PA AS I RECALL WE STAYED AT THE HERSHEY HOTEL ON THE CORNER OF COCOA AVENUE AND CHOCOLATE BOULEVARD ACROSS THE STREET FROM THE HERSHEY JUNIOR COLLEGE WHERE THE ACTUAL INSTRUCTION TOOK PLACE A BLOCK OR SO FROM THE HERSHEY DEPARTMENT STORE AND SO ON YOU GET THE IDEA THE STENCH OR PERFUME OF PATERNALISM WAS HEAVY IN THE AIR EARLY IN THE CENTURY SUCH COMPANY TOWNS MOST FAR LESS BENEVOLENTLY PATERNALISTIC THAN HERSHEY WERE COMMON WORKERS WHO WERE EMPLOYED AT MINES OR FACTORIES LOCATED FAR FROM LARGE CITIES IN TOWNS THAT TYPICALLY HAD ONLY A SINGLE MAJOR EMPLOYER WERE OFTEN REQUIRED OR INDUCED TO LIVE IN COMPANY HOUSING AND BUY THEIR FOOD AND OTHER SUPPLIES AT COMPANY STORES IN EFFECT THEY WERE PAID IN KIND RATHER THAN IN CASH THE SOCALLED TRUCK SYSTEM AS MERLE TRAVIS PUT IT IN HIS SONG MADE POPULAR BY TENNESSEE ERNIE FORD YOU LOAD 16 TONS AND WHAT DO YOU GET/ YOU GET ANOTHER DAY OLDER AND DEEPER IN DEBT SAINT PETER DON'T YOU CALL ME 'CAUSE I CAN'T GO/ I OWE MY SOUL TO THE COMPANY STORE REFORMERS OBJECTED STRONGLY TO THE PRACTICE MAINTAINING THAT WORKERS SHOULD BE PAID IN CASH AND BE FREE TO SPEND THEIR INCOMES WHERE THEY WANTED AS THE COUNTRY GREW AND THE ISOLATED COMPANY TOWN BECAME FAR LESS COMMON REFORMERS HAD THEIR WAY AND THE PAYMENT OF WAGES IN CASH BECAME THE NORM BY THE 1940S HERSHEY WAS AN ISOLATED RELIC NOT SO TODAY THE COMPANY TOWN HAS BEEN REVIVED IN ONE MAJOR AREA MEDICAL CARE IT IS TAKEN FOR GRANTED THAT WORKERS SHOULD RECEIVE THEIR PAY PARTLY IN KIND IN THE FORM OF MEDICAL CARE PROVIDED BY THE EMPLOYER HOW COME WHY SINGLE OUT MEDICAL CARE SURELY FOOD IS NO LESS ESSENTIAL TO LIFE THAN MEDICAL CARE WHY IS IT NOT AT LEAST AS LOGICAL FOR WORKERS TO BE REQUIRED TO BUY THEIR FOOD AT THE COMPANY STORE AS TO BE REQUIRED TO BUY THEIR MEDICAL CARE AT THE COMPANY STORE THE REVIVAL OF THE COMPANY STORE HAS LESS TO DO WITH LOGIC THAN WITH PURE CHANCE IT IS A WONDERFUL EXAMPLE OF HOW ONE BAD GOVERNMENT POLICY LEADS TO ANOTHER DURING WORLD WAR II THE GOVERNMENT IMPOSED WAGE AND PRICE CONTROLS WHILE AT THE SAME TIME FINANCING WARTIME SPENDING BY PRINTING MONEY THE RESULTING INFLATIONARY PRESSURE ALONG WITH PRICE CONTROLS PRODUCED SHORTAGES OF ALL KINDS INCLUDING LABOR FIRMS COMPETING TO ACQUIRE LABOR AT GOVERNMENTCONTROLLED WAGES STARTED TO OFFER MEDICAL CARE AS A FRINGE BENEFIT THAT BENEFIT PROVED PARTICULARLY ATTRACTIVE TO WORKERS AND SPREAD RAPIDLY INITIALLY EMPLOYERS DID NOT REPORT THE VALUE OF THE FRINGE BENEFIT TO THE INTERNAL REVENUE SERVICE AS PART OF THEIR WORKERS' WAGES IT TOOK SOME TIME BEFORE THE IRS REALIZED WHAT WAS GOING ON WHEN IT DID IT ISSUED REGULATIONS REQUIRING EMPLOYERS TO INCLUDE THE VALUE OF MEDICAL CARE AS PART OF REPORTED EMPLOYEES' WAGES BY THIS TIME WORKERS HAD BECOME ACCUSTOMED TO THE TAX EXEMPTION OF THAT PARTICULAR FRINGE BENEFIT AND MADE A BIG FUSS CONGRESS RESPONDED BY LEGISLATING THAT MEDICAL CARE PROVIDED BY EMPLOYERS SHOULD BE TAXEXEMPT WAGE AND PRICE CONTROLS ENDED BUT THE TAXEXEMPTION OF MEDICAL CARE PROVIDED BY EMPLOYERS DID NOT WHICH EXPLAINS THE SURVIVAL OF THE COMPANY STORE IN THIS AREA THAT SURVIVAL IS UNQUESTIONABLY A MAJOR REASON FOR THE PRESENT CRISIS IN MEDICAL CARE THE OBVIOUS SOLUTION IS TO ELIMINATE THE TAX EXEMPTION OF MEDICAL CARE IN WHICH CASE EMPLOYERS AND EMPLOYEES WOULD FIND IT MUTUALLY ADVANTAGEOUS TO CONVERT THE FRINGE BENEFIT TO A CASH WAGE SUPPLEMENT HOWEVER THIS SOLUTION IS WIDELY REGARDED AS NOT POLITICALLY FEASIBLE AN ALTERNATIVE OFTEN PROPOSED IS TO CONTINUE THE TAX EXEMPTION BUT END THE REQUIREMENT THAT MEDICAL CARE BE PURCHASED THROUGH THE COMPANY STORE LET EMPLOYERS NOW PROVIDING MEDICAL CARE AND THEIR EMPLOYEES AGREE ON A SPECIFIED SUM TO BE ADDED TO CASH WAGES IN LIEU OF EMPLOYERPROVIDED MEDICAL CARE LET THAT SUM BE TAXEXEMPT TO THE EMPLOYEE IF DEPOSITED IN A SOCALLED MEDISAVE ACCOUNT LET EMPLOYEES HAVE COMPLETE DISCRETION OVER HOW THEY USE THAT SUM PROVIDED THEY USE IT FOR MEDICAL CARE IF THEY DO NOT USE ALL OF IT LET IT ACCUMULATE AND UNDER SPECIFIED CONDITIONS BE WITHDRAWN BY THE EMPLOYEE FOR OTHER PURPOSES I HAVE LITTLE DOUBT THAT THE INTRODUCTION OF SUCH MEDISAVE ACCOUNTS WOULD SIGNIFICANTLY REDUCE THE TOTAL COST OF MEDICAL CARE A RECENT BOOK BY JOHN GOODMAN AND GERALD MUSGRAVE PATIENT POWER PUBLISHED BY THE CATO INSTITUTE OFFERS A THOROUGH ACCOUNT OF THIS PROPOSAL EMPLOYEES WHO NOW HAVE NO INCENTIVE TO ECONOMIZE ON MEDICAL CARE OR TO SHOP FOR THE PROVIDERS THAT BEST MEET THEIR NEEDS ECONOMICALLY WOULD BE GIVEN AN INCENTIVE TO DO SO I HASTEN TO ADD THAT THIS PROPOSAL IS NOT A PANACEA FOR PRESENT DIFFICULTIES MEDICARE AND MEDICAID WOULD STILL REMAIN POWERFUL IMPEDIMENTS TO THE EFFICIENT AND EFFECTIVE USE OF MEDICAL FACILITIES AND PERSONNEL MR FRIEDMAN WHO WON THE 1976 NOBEL PRIZE IN ECONOMICS IS A FELLOW AT STANFORD'S HOOVER INSTITUTION 9302030095 930203 LAW LEGAL BEAT SUIT AGAINST FARLEY IS DISMISSED AFTER US REFUSES JUDGE'S ORDER BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR WILLIAM FARLEY CALL IT THE CASE OF THE LUCKY LEAK A FEDERAL JUDGE IN CHICAGO DISMISSED A GOVERNMENT SUIT AGAINST THE CHICAGO FINANCIER AFTER THE JUSTICE DEPARTMENT REFUSED TO COMPLY WITH THE JUDGE'S ORDER TO TURN OVER DOCUMENTS THAT HAVE BEEN THE SUBJECT OF AN UNUSUAL COURTROOM TUSSLE BETWEEN MR FARLEY AND THE GOVERNMENT THE DISMISSAL UNDERSCORES HOW SERIOUSLY THE CIVIL CASE WAS DAMAGED WHEN A FEDERAL TRADE COMMISSION ATTORNEY FRUSTRATED BECAUSE HE THOUGHT THE SUIT WASN'T WARRANTED LEAKED TO MR FARLEY'S ATTORNEYS GOVERNMENT DOCUMENTS THAT POINTED TO WEAKNESSES IN THE CASE THE FTC ATTORNEY A 19YEAR AGENCY VETERAN WHO HAS SINCE BEEN FIRED SAYS HE HAS NO REGRETS ABOUT HIS LEAKS I WAS VERY CONCERNED ABOUT WHAT THE GOVERNMENT WAS SETTING OUT TO DO TO MR FARLEY SAID RAYMOND L RANDALL IN AN INTERVIEW THE PAPERS WERE RETURNED TO THE FTC AND THE LAW FIRM THAT RECEIVED THEM BOWED OUT OF THE CASE BUT ONCE THEIR EXISTENCE BECAME KNOWN MR FARLEY ARGUED THAT HE SHOULD HAVE ACCESS TO THEM THE HIGHPROFILE LAWSUIT FILED A YEAR AGO IN CHICAGO FEDERAL COURT HAD CHARGED THAT THE CHAIRMAN OF FRUIT OF THE LOOM INC VIOLATED REPORTING PROVISIONS OF THE FEDERAL HARTSCOTTRODINO ACT WHEN PURCHASING SHARES PRIOR TO A TAKEOVER BID FOR WEST POINTPEPPERELL CORP ALTHOUGH THE SUIT WAS FILED BY THE JUSTICE DEPARTMENT IT HAS BEEN LITIGATED BY THE FTC THIS IS A CASE THAT NEED NEVER HAVE BEEN BROUGHT AND SHOULD NEVER HAVE BEEN BROUGHT IN VIEW OF WHAT HAS OCCURRED SAID DONALD EGAN A PARTNER WITH CHICAGO LAW FIRM KATTEN MUCHIN & DAVIS WHICH REPRESENTS MR FARLEY JUDGE BRIAN BARNETT DUFF SANCTIONED THE GOVERNMENT FOR REFUSING TO TURN OVER THE DOCUMENTS BY DISMISSING THE CASE WITH PREJUDICE WHICH MEANS THE CASE CANNOT BE REFILED THE GOVERNMENT'S ONLY RECOURSE IS TO APPEAL THE JUDGE'S ORDER AN FTC OFFICIAL SAID THE GOVERNMENT HASN'T YET DECIDED WHETHER IT WILL APPEAL RONALD ROWE DIRECTOR FOR LITIGATION WITH THE FTC'S BUREAU OF COMPETITION CALLED THE GOVERNMENT'S REFUSAL TO HAND THE PAPERS OVER AN ISSUE OF LEGAL PRINCIPLE THE MATERIALS INCLUDED DOCUMENTS WITHIN THE FTC'S DELIBERATIVE PROCESS HE SAID AND THE ORDER COMPELLING DISCLOSURE OF SUCH PRIVILEGED MATTER WAS A CLEAR ERROR OF LAW THE CASE AGAINST MR FARLEY TURNED AWKWARD FOR THE GOVERNMENT EARLY ON THE SUIT ALLEGED THAT WHEN THE FINANCIER INITIALLY BOUGHT SHARES IN WEST POINTPEPPERELL A GEORGIA TEXTILE MAKER HE FAILED TO ADHERE TO THE HARTSCOTTRODINO ACT RULE THAT INVESTORS MUST NOTIFY THE GOVERNMENT WHEN THEIR HOLDINGS PASS AN AGGREGATE 15 MILLION THE COMPLAINT SOUGHT A FINE OF 10000 A DAY FOR THE TIME IN WHICH HE ALLEGEDLY WAS IN VIOLATION FOR A TOTAL OF 910000 MR FARLEY CONTENDS HE WAS EXEMPT FROM THAT REQUIREMENT UNDER A PROVISION THAT SAYS PURCHASES MADE FOR INVESTMENT ONLY WITH NO INTENTION OF TAKING AN ACTIVE ROLE AT THE COMPANY NEEDN'T BE SUBMITTED TO THE FTC FOR CLEARANCE MR FARLEY HAS ASSERTED THAT HIS INTEREST IN WEST POINT WAS ONLY AS A PASSIVE INVESTOR AT THE TIME HE ACQUIRED HIS EARLY STAKE AND THAT HE DID FILE THE REQUISITE DOCUMENTS WHEN HE SUBSEQUENTLY DECIDED HE MIGHT SEEK CONTROL OF THE COMPANY AFTER A BITTER FIGHT MR FARLEY ULTIMATELY ACQUIRED A 95 STAKE IN WEST POINT THROUGH A 156 BILLION TENDER OFFER IN 1989 FINANCIAL PROBLEMS LATER CAUSED HIM TO GIVE UP THAT HOLDING THE GOVERNMENT ARGUES THAT MR FARLEY ALWAYS WAS CONSIDERING A TAKEOVER BID AND THUS WASN'T ELIGIBLE FOR THE EXEMPTION BUT MR FARLEY SAYS THE FTC HAD NEVER PUBLICLY SAID THAT EVEN A POSSIBLE INTENTION TO SEEK CONTROL OF A COMPANY MUST BE DECLARED THE GOVERNMENT HAD AN INTERPRETATION WHICH WASN'T GENERALLY AVAILABLE TO THE INVESTING PUBLIC INCLUDING MR FARLEY SAYS MR EGAN HIS ATTORNEY OUR POSITION SIMPLY PUT IS THAT MR FARLEY AND THE INVESTING PUBLIC WERE ENTITLED TO BE ADVISED OF THE COMMISSION'S INTERPRETATION OF THE INVESTMENTONLY EXEMPTION THE CONTROVERSY OVER THE DOCUMENTS BEGAN WHEN MR RANDALL WHO HAD LED THE FTC'S INVESTIGATION OF MR FARLEY SENT TO SOME OF MR FARLEY'S ATTORNEYS BY MESSENGER DOCUMENTS THAT INCLUDED INTERNAL DISCUSSIONS WHERE PEOPLE IN CHARGE OF ENFORCING THIS LAW ADVISED THE COMMISSION THAT IT WAS UNENFORCEABLE ACCORDING TO MR RANDALL THE INTERPRETATION WITH WHICH THEY WERE GOING TO PROSECUTE BILL FARLEY HAD NEVER BEEN INTRODUCED TO THE PUBLIC HE ADDS CONCERNED ABOUT POSSIBLE LIABILITIES ASSOCIATED WITH RECEIVING THE DOCUMENTS MR FARLEY'S ATTORNEYS AT THE LAW FIRM AKIN GUMP HAUER & FELD RETURNED THEM TO THE FTC DECLINED TO LET MR FARLEY OR THEIR COCOUNSEL SEE THE DOCUMENTS AND RESIGNED FROM THE CASE BUT MR FARLEY'S REMAINING LAW FIRM AWARE OF THE GENERAL EXISTENCE IF NOT THE SPECIFICS OF THE LEAKED DOCUMENTS SOUGHT A HUGE QUANTITY OF FILES RELATING THE FTC AND JUSTICE DEPARTMENT'S INTERPRETATION OF THE INVESTMENTONLY EXEMPTION THAT REQUEST WOULD LIKELY HAVE SNARED THE INHOUSE DISCUSSIONS THAT WERE APPARENTLY SO DAMAGING TO THE GOVERNMENT'S CASE JUDGE DUFF EVENTUALLY ORDERED THE GOVERNMENT TO COMPLY BY JAN 12 AND AFTER THEY FAILED TO DO SO DISMISSED THE CASE LAST WEEK WHO'S A WHISTLEBLOWER LAW FIRMS LOOKING TO COLLECT A BOUNTY FOR DISCOVERING FRAUD AGAINST THE GOVERNMENT CAN'T TAKE ADVANTAGE OF THE US WHISTLEBLOWER STATUTE A FEDERAL APPEALS COURT RULED UNDER THE US FALSE CLAIMS ACT A CITIZEN WHO FINDS FRAUD BY A GOVERNMENT CONTRACTOR CAN FILE SUCH A CLAIM AND RECEIVE A BOUNTY OF 15 TO 30 OF ANY JUDGMENT OR SETTLEMENT THE GOVERNMENT ENDS UP WINNING BUT A LAW FIRM CAN'T MAKE SUCH CLAIMS THE FEDERAL APPEALS COURT IN NEW YORK SAID LAST MONTH IF IT ISN'T THE ORIGINAL SOURCE OF THE DISCOVERED FRAUD THE FEDERAL APPEALS COURT IN PHILADELPHIA RULED SIMILARLY IN 1991 IN THE LATEST DECISION THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK SAID THAT LAWYERS WHO LEARN ABOUT POSSIBLE FRAUD AGAINST THE GOVERNMENT IN THE COURSE OF REPRESENTING A CLIENT CAN'T USE THAT INFORMATION TO MAKE THEIR OWN WHISTLEBLOWER CLAIM THE SECOND CIRCUIT CASE INVOLVED A CLAIM MADE BY KREINDLER & KREINDLER A NEW YORK LAW FIRM AGAINST UNITED TECHNOLOGIES CORP HARTFORD CONN THE COURT SAID THE LAWSUIT WAS BASED ON INFORMATION KREINDLER & KREINDLER GLEANED FROM REPRESENTING THE WIDOW OF A SOLDIER WHO DIED IN THE CRASH OF A BLACKHAWK HELICOPTER MADE BY UNITED TECHNOLOGIES PATRICK LEE AN ATTORNEY IN WASHINGTON AT CROWELL & MORING WHO REPRESENTED UNITED TECHNOLOGIES SAID THE DECISION REFLECTS A DISTASTE IN THE COURTS FOR LAWYERS' WHISTLEBLOWER CLAIMS ASIDE FROM CHALLENGING KREINDLER & KREINDLER'S STATUS TO BRING THE SUIT UNITED TECHNOLOGIES DENIED THAT IT COMMITTED ANY FRAUD STEVEN R POUNIAN THE KREINDLER & KREINDLER LAWYER WHO HANDLED THE CASE SAID THE SECOND CIRCUIT RULING SHUTS DOWN A MAJOR AVENUE FOR FALSECLAIM LAWSUITS HE SAID THE LAW FIRM PLANS TO APPEAL THE DECISION USA EX REL KREINDLER & KREINDLER VS UNITED TECHNOLOGIES CORP SECOND US CIRCUIT COURT OF APPEALS NEW YORK 919288 WHO'S NEWS MATTHEW D POWERS BECAME A PARTNER IN THE SILICON VALLEY OFFICE OF WEIL GOTSHAL & MANGES A NEW YORK LAW FIRM MR POWERS WHO WAS PREVIOUSLY AT THE SAN FRANCISCO LAW FIRM ORRICK HERRINGTON & SUTCLIFFE SPECIALIZES IN INTELLECTUAL PROPERTY LITIGATION DOUGLAS J LIPKE JOINED VEDDER PRICE KAUFMAN & KAMMHOLZ AS HEAD OF THE CHICAGO LAW FIRM'S BANKRUPTCY GROUP HE PREVIOUSLY WAS AT THE LAW FIRM KECK MAHIN & CATE IN CHICAGO JUDGE JOINS LAW FIRM A LEON HIGGINBOTHAM JR A SEMIRETIRED JUDGE OF THE THIRD US CIRCUIT COURT OF APPEALS IN PHILADELPHIA IS RETIRING MARCH 5 JUDGE HIGGINBOTHAM WHO TURNS 65 LATER THIS MONTH WILL BECOME COUNSEL TO THE NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON ON MARCH 15 JUDGE HIGGINBOTHAM KNOWN FOR BEING OUTSPOKEN ON SOCIAL ISSUES HAS BEEN A FEDERAL JUDGE FOR 29 YEARS AND IS A FORMER CHIEF JUDGE OF THE THIRD CIRCUIT JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9302030094 930203 CD YIELDS FELL SLIGHTLY DURING LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE DOWN SLIGHTLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 284 FROM 287 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS DROPPED SLIGHTLY TO 518 FROM 525 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED DOWN TO 314 FROM 315 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 530 FROM 551 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 288 FROM 289 ON FIVEYEAR JUMBOS THE AVERAGE FELL TO 538 FROM 545 ACCORDING TO BANXQUOTE 9302030091 930203 CRAY'S SALE EFFORTS MAY CAUSE CLASH OVER NOMINATION BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NOMINATION OF FORMER CRAY RESEARCH INC CHAIRMAN JOHN ROLLWAGEN TO BE DEPUTY COMMERCE SECRETARY MAY SPARK CONTROVERSY IN CONGRESS BECAUSE OF HIS EFFORTS TO SELL CRAY SUPERCOMPUTERS TO CHINA AND OTHER COUNTRIES THAT POSSESS NUCLEAR WEAPONS THE SALE HAS BEEN A CONTENTIOUS ONE BECAUSE OF QUESTIONS OVER WHETHER WEAPONSRELATED PRODUCTS SHOULD BE EXPORTED TO SUCH NATIONS AS CHINA SUPERCOMPUTERS CAN ASSIST IN THE DEVELOPMENT OF NUCLEAR WEAPONS CRAY BASED IN EAGAN MINN HAS AN APPLICATION PENDING WITH THE COMMERCE DEPARTMENT TO SELL CHINA A SUPERCOMPUTER THAT IT SAYS WOULD BE USED ONLY FOR WEATHER RESEARCH SEN JESSE HELMS HAS BEEN ONE OF THE MOST VOCAL CRITICS OF THE PROPOSED SALE THE NORTH CAROLINA REPUBLICAN WOULD BE A LIKELY OPPONENT OF MR ROLLWAGEN WHO STEPPED DOWN AS HEAD OF CRAY LAST WEEK TO ACCEPT PRESIDENT CLINTON'S NOMINATION TO BE THE NO 2 OFFICIAL AT THE COMMERCE DEPARTMENT UNDER ITS SECRETARY RON BROWN MR HELMS HAS ARGUED THAT CHINA COULD USE THE SUPERCOMPUTER TO BUILD ITS MILITARY ARSENAL MR HELMS ISN'T ON THE COMMERCE COMMITTEE WHICH IS TO HOLD HEARINGS ON MR ROLLWAGEN'S NOMINATION BUT IF MR ROLLWAGEN CLEARS THE COMMITTEE MR HELMS COULD TRY TO BLOCK THE NOMINATION WHEN IT GOES BEFORE THE ENTIRE SENATE FOR CONFIRMATION A COMMERCE DEPARTMENT SPOKESMAN KEVIN SWEENEY SAID THAT MR ROLLWAGEN WILL RECUSE HIMSELF FROM ALL MATTERS RELATING TO CRAY INCLUDING THE PLANNED PURCHASE OF A SUPERCOMPUTER BY THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION A COMMERCE DEPARTMENT AGENCY THAT MONITORS WEATHER AMONG OTHER THINGS THE NOMINATION HAS ALREADY DRAWN SOME PUBLIC CRITICISM I'M SURPRISED THE PRESIDENT WOULD PICK SOMEBODY WHO IS A WELLKNOWN ADVOCATE OF SELLING SUPERCOM PUTERS TO DANGEROUS PLACES SAID GARY MILLHOLLIN DIRECTOR OF THE WISCONSIN PROJECT ON NUCLEAR ARMS CONTROL A WASHINGTON GROUP HE CITED MR ROLLWAGEN'S ATTEMPTS TO SELL SUPERCOMPUTERS TO CHINA AS WELL AS INDIA AND ISRAEL LATE LAST YEAR THE APPLICATION PROMPTED A BATTLE AMONG FEDERAL AGENCIES THE DEFENSE DEPARTMENT'S DEFENSE TECHNOLOGY SECURITY ADMINISTRATION AND THE ARMS CONTROL DISARMAMENT AGENCY OPPOSED THE SALE FOR NATIONAL SECURITY REASONS WHILE THE STATE AND COMMERCE DEPARTMENTS SUPPORTED THE APPLICATION A SUPERCOMPUTER SALE TO CHINA REQUIRES CABINETLEVEL APPROVAL IT MUST ALSO BE CLEARED BY THE COORDINATING COMMITTEE FOR MULTILATERAL EXPORT CONTROLS A GROUP THAT INCLUDES MEMBERS OF THE NORTH ATLANTIC TREATY ORGANIZATION JAPAN AND AUSTRALIA CRAY SPOKESMAN FRANK PARISI SAID ANY SUPERCOMPUTER SOLD TO CHINA COULD ONLY BE USED FOR WEATHER RESEARCH BECAUSE OF SECURITY SAFEGUARDS PLACED IN IT THE ONLY WAY THIS SYSTEM COULD BE DANGEROUS TO ANYBODY AS PROPOSED IS IF IT FELL ON THEM HE SAID 9302030090 930203 BUSINESS BRIEF LA QUINTA MOTOR INNS INC COMPANY'S 4THPERIOD PROFIT REVERSES A YEARAGO LOSS LA QUINTA MOTOR INNS INC POSTED FOURTHQUARTER PROFIT OF 22 MILLION OR 17 CENTS A SHARE TURNING AROUND A YEARAGO LOSS CITING IMPROVEMENTS IN AVERAGE ROOM RATES AND OCCUPANCY AS WELL AS A CHANGE IN BUILDING DEPRECIATION THE SAN ANTONIO TEXAS MOTOR INN OPERATOR ATTRIBUTED EIGHT CENTS A SHARE OF THE EARNINGS TO A DECREASE IN DEPRECIATION EXPENSE BY CHANGING THE USEFUL LIVES OF BUILDINGS TO 40 YEARS FROM 30 YEARS IN THE YEARAGO QUARTER LA QUINTA HAD A LOSS OF 25 MILLION OR 19 CENTS A SHARE REFLECTING CHARGES RELATED TO A RESTRUCTURING REVENUE ROSE 73 TO 575 MILLION FOR THE YEAR LA QUINTA HAD A LOSS OF 88 MILLION OR 65 CENTS A SHARE COMPARED WITH 1991 NET INCOME OF 129000 OR ONE CENT A SHARE REVENUE ROSE 55 FOR THE YEAR TO 2558 MILLION 9302030089 930203 TUESDAY'S MARKETS DATA CAUSE BOND PRICES TO DECLINE LEADING INDEX JUMPS BUT STOCKS FOCUS ON SLIP IN TREASURYS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED AS INVESTORS LARGELY IGNORED SOME POSITIVE ECONOMIC NEWS AND FOCUSED ON FALLING BOND PRICES THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SANK 351 POINTS TO 332867 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX INCHED UP 004 TO A RECORD 44256 AND THE NASDAQ COMPOSITE INDEX GAINED 335 TO 70512 INVESTORS WERE GREETED BY SOME STRONG ECONOMIC DATA THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS ROSE 19 IN DECEMBER THE BIGGEST JUMP IN NEARLY 10 YEARS ALSO THE DEPARTMENT SAID SALES OF NEW SINGLEFAMILY HOUSES JUMPED 63 IN DECEMBER THE NEWS CAUSED BOND PRICES TO FALL AND STOCK PRICES FOLLOWED OUR STOCK MARKET IS SO TIED INTO BONDS THAT IF BOND PRICES SLIP JUST A LITTLE IT HAS A NEGATIVE EFFECT ON STOCKS SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA ARTHUR A MICHELETTI CHIEF ECONOMIST AND INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF SAID STOCK MARKET INVESTORS MAY BE SENSING THAT THE ECONOMIC OUTLOOK ISN'T AS BRIGHT AS THE STATISTICS SUGGEST HE SAID A VARIETY OF JANUARY REPORTS DUE OUT IN COMING DAYS AND WEEKS WILL SHOW NEW STRAINS IN THE ECONOMY PRODUCED BY CONTINUING LAYOFFS BY MAJOR CORPORATIONS MR MICHELETTI ALSO ARGUED THAT FOURTHQUARTER ECONOMIC FIGURES WERE BOOSTED UNREALISTICALLY BY PAYOUTS FROM THE GOVERNMENT AND PRIVATE INSURANCE COMPANIES TO DISASTER VICTIMS AT THE SAME TIME HE ADDED CONSUMERS WENT ON A BUYING SPREE IN DECEMBER MOSTLY ON CREDIT WHEN THEY GET THE BILLS THEY'LL START TO RETREAT AGAIN MR MICHELETTI SAID IN THE FIRST QUARTER THINGS WILL LOOK A LOT SLOWER HE SEES STOCK PRICES SLIDING 5 TO 10 IN THE NEAR TERM BUT ISN'T GLOOMY ON THE STOCK MARKET'S OVERALL PROSPECTS AFTER PRICES FALL MR MICHELETTI SAYS THE CLIMATE OF LOW INFLATION LOW INTEREST RATES AND SLOW GROWTH WILL BE FAVORABLE FOR STOCKS WE COULD GET A SIGNIFICANT SETBACK AND IF IT HAPPENS I'D BE STEPPING UP TO BUY RATHER THAN PANICKING HE SAID DRUG STOCKS WERE KNOCKED DOWN YESTERDAY AFTER SALOMON BROTHERS LOWERED ITS INVESTMENT RATING ON THE GROUP BUT MR MICHELETTI SAID HE BELIEVES FURTHER DROPS IN SOME DRUG COMPANIES PARTICULARLY PFIZER PRESENT BUYING OPPORTUNITIES WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 004 TO 9270 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2693 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1095 ISSUES ROSE AND 775 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL MORE THAN HALF A POINT OR MORE THAN 5 FOR EACH 1000 FACE AMOUNT TO YIELD 724 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16405 MARKS AND 12465 YEN COMPARED WITH 16358 MARKS AND 12505 YEN MONDAY 9302030088 930203 COMMODITIES BULL MARKET LURES TRADERS INTO LUMBER BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IF YOU'D ASKED THEM A MONTH AGO MANY OF THE NATION'S BIGGEST COMMODITY TRADERS PROBABLY WOULDN'T HAVE KNOWN THAT THE CHICAGO MERCANTILE EXCHANGE TRADED LUMBER FUTURES CONTRACTS THEY KNOW NOW THE PRICE OF THE MERC'S LUMBER CONTRACT HAS RISEN THE DAILY LIMIT FOR THE PAST SEVEN CONSECUTIVE TRADING DAYS IN A RAGING BULL MARKET THAT FEW PEOPLE SAW COMING IT'S WILD SAYS GREGG RILEY SALES MANAGER FOR BLOCH LUMBER CO A LUMBER WHOLESALER ACTIVE IN THE MERC'S FUTURES MARKET THE MARKET HAS NEVER BEEN THIS VOLATILE PREVIOUSLY TRADERS HAVE USED THE MERC'S LUMBER FUTURES CONTRACT MAINLY AS AN EARLY INDICATOR OF THE HEALTH OF THE US ECONOMY BECAUSE ITS PRICE TENDS TO REFLECT HOMEBUILDING ACTIVITY IN THE PAST TWO WEEKS HOWEVER LUMBER HAS BECOME A HOT TRADING VEHICLE IN FACT SINCE DECEMBER SMALL FORTUNES HAVE BEEN MADE AND LOST IN LUMBER FUTURES AND OPTIONS CONTRACTS PEOPLE WHO HAVE BEEN LONG A WAGER THAT LUMBER PRICES WILL RISE HAVE MADE A TREMENDOUS AMOUNT OF MONEY SAYS STEVE MOORE PRESIDENT OF THE MOORE RESEARCH CENTER A COMMODITY ANALYSIS FIRM SOME PEOPLE HAVE FOLLOWED IT FROM 221 PER THOUSAND BOARD FEET ABOVE 300 AND THAT'S A HUGE MOVEMENT IT'S KIND OF LIKE WHAT HAPPENED TO OIL WHEN IRAQ INVADED KUWAIT CONVERSELY MR MOORE SAYS THERE ARE A LOT OF HORROR STORIES OUT THERE ABOUT SMALL INVESTORS WHO TOOK SHORT POSITIONS OR WAGERS THAT LUMBER PRICES WOULD DECLINE BECAUSE THEY PERCEIVED THE PRICE AS BEING TOO HIGH A LOT OF THOSE PEOPLE ARE NOW TRAPPED HE SAYS TRADERS AT THE CHICAGO MERC WHO HAVE SPURNED LUMBER IN THE PAST ARE MOVING FROM CATTLE AND CURRENCY FUTURES PITS INTO THE LUMBER OPTIONS PIT AND PLACING THEIR BETS THESE CONTRACTS ENTITLE THEM TO BUY OR SELL LUMBER FOR A GIVEN PRICE AT A SPECIFIED DATE IN THE FUTURE WHY LUMBER OPTIONS BECAUSE LUMBER FUTURES CONTRACTS WHEN LOCKED AT THE DAILY PRICE MOVE LIMIT AS THEY ARE NOWAREN'T AVAILABLE FOR PURCHASE BECAUSE OF THE WILD PRICE MOVES LUMBER OPTIONS TRADING VOLUME HAS EXPLODED AT THE MERC AN AVERAGE OF 1668 LUMBER OPTIONS CHANGED HANDS EACH DAY LAST MONTH IN JANUARY 1992 THE DAILY AVERAGE WAS 581 CONTRACTS BEFORE LAST MONTH THE MERC HAD NEVER TRADED MORE THAN 1220 LUMBER OPTIONS CONTRACTS IN A DAY THE PRICE OF ANY COMMODITY IS GOVERNED BY THE RELATIONSHIP BETWEEN SUPPLY AND DEMAND AND TRADERS SAY DEMAND FOR LUMBER HAS RADICALLY OUTPACED THE AVAILABLE SUPPLY IN FACT THE SUPPLYDEMAND EQUATION FOR LUMBER IS COMPLETELY OUT OF WHACK CONSTRUCTION COMPANIES AND LUMBER YARDS ARE SCRAMBLING TO GET THE LUMBER THEY NEED PAYING EVER MORE ASTRONOMICAL PRICES FOR WOOD MEANWHILE LUMBER MILLS IN THE PACIFIC NORTHWEST AND IN THE BRITISH COLUMBIA REGION OF CANADA CONSTRAINED BY LOGGING LIMITS IMPOSED BY NEW ENVIRONMENTALPROTECTION LAWS ARE UNABLE TO KEEP UP WITH THE DEMAND THIS IS MAINLY BECAUSE OF THE UPTURN IN THE US HOUSING INDUSTRY LOW LONGTERM INTEREST RATES ARE TRANSLATING INTO LOW MORTGAGE RATES WHICH IS SPURRING GROWTH IN CONSTRUCTION OF SINGLEFAMILY HOMES THE CURRENT STREAK OF LIMITUP LUMBER PRICE MOVES BEGAN ON JAN 25 JUST AFTER THE COMMERCE DEPARTMENT REPORTED AN INCREASE IN US HOUSING STARTS LUMBER INVENTORIES ARE LOW AND THERE'S AN INTENSE DEMAND FOR WOOD SAYS WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH EVERYONE IS TRYING TO BUY LUMBER AT THE SAME TIME LUMBER WHOLESALERS THE MIDDLEMEN THAT BUY FROM LUMBER MILLS AND SELL TO LUMBER YARDS ARE PAYING PRICES FOR LUMBER THAT PREVIOUSLY WOULD HAVE SEEMED RIDICULOUS SOME OF THEM ARE BUYING WHATEVER LUMBER THEY CAN LAY THEIR HANDS ON REGARDLESS OF WHAT IT COSTS SAYS JIM CONNELLY A LUMBER FUTURES TRADER FOR LINNCO FUTURES IN CHICAGO BEFORE THIS YEAR THE MERC'S LUMBER FUTURES HAD NEVER TRADED ABOVE 290 PER THOUSAND BOARD FEET THE PRICE OF THE MERC LUMBER CONTRACT FOR MARCH DELIVERY CLOSED YESTERDAY AT 31350 PER THOUSAND BOARD FEET A RECORD PRICE BUT EVEN THAT PRICE IS DECEPTIVELY LOW SOME IN THE INDUSTRY SAY WE JUST SOLD SOME LUMBER ON THE CASH MARKET FOR 370 PER THOUSAND BOARD FEET SAYS MR RILEY OF BLOCH LUMBER BECAUSE OF THE DISCREPANCY BETWEEN PRICES ON THE FUTURES AND CASH MARKETS MR RILEY SAYS HE EXPECTS LUMBER FUTURES PRICES TO CONTINUE TO RISE BY THE 5 DAILY LIMIT WELL INTO NEXT WEEK THE OPTIONS PRICES RIGHT NOW ARE REFLECTING A FUTURES PRICE OF ABOUT SIX MORE LIMIT UP MOVES OR ABOUT 34450 PER THOUSAND BOARD FEET HE SAYS WHEN THE CURRENT SURGE IN PRICES TAPERS OFF SOME TRADERS MAY BE TEMPTED TO TAKE SHORT POSITIONS IN LUMBER FUTURES EACH YEAR LUMBER FUTURES PRICES TYPICALLY DECLINE AFTER FEB 15 BECAUSE BY THAT TIME HOME BUILDERS HAVE TYPICALLY BOUGHT ALL THE WOOD THEY NEED FOR THE SPRING CONSTRUCTION SEASON BUT ANYONE WHO SELLS SHORT LUMBER FUTURES NOW DOES SO AT HIS OWN PERIL SAYS THE MOORE RESEARCH CENTER'S MR MOORE THIS MAY BE LIKE SELLING GOLD AT 700 AN OUNCE HE SAYS IT LOOKS LIKE A HELL OF A GREAT SALE BUT IT MAY GO TO 900 BEFORE IT GOES DOWN IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES FELL ON A COMBINATION OF FACTORS TRADERS CITED A TECHNICALLY DRIVEN PULLBACK AHEAD OF THE LATEST US OIL INVENTORY REPORT AND SKEPTICISM THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL CUT PRODUCTION MUCH LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY DROPPED BRIEFLY BELOW THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE BUT SETTLED AT 20 EVEN DOWN 31 CENTS FOR THE DAY AFTER FUTURES TRADING CLOSED THE AMERICAN PETROLEUM INSTITUTE RELEASED ITS LATEST US OIL STATISTICS THE API REPORT SHOWED THAT INVENTORIES OF DISTILLATE FUELS WHICH INCLUDE HEATING OIL DECLINED 55 MILLION BARRELS LAST WEEK A BIGGER DROP THAN HAD BEEN EXPECTED BUT GASOLINE STOCKS ROSE 44 MILLION BARRELS MORE THAN EXPECTED CRUDE INVENTORIES WERE DOWN SLIGHTLY AS ANTICIPATED COFFEE BUOYED BY A BULLISH NEW ESTIMATE FOR THE BRAZILIAN CROP COFFEE FUTURES PRICES CONTINUED TO RECOUP EARLIER LOSSES WITH THE MARCH CONTRACT SETTLING 240 CENTS HIGHER AT 6335 CENTS A POUND ON THE COFFEE SUGAR & COCOA EXCHANGE A WIDELY READ REPORT BY THE BRITISH COMMODITY TRADING HOUSE ED& F MAN PREDICTED THAT BRAZIL'S OVERALL CROPTHE WORLD'S LARGESTWOULD BE SMALLER THAN ORIGINALLY EXPECTED AT 215 MILLION BAGS SOME BRAZILIAN SOURCES HAD BEEN SUGGESTING A MUCH HIGHER 199394 CROP OF ABOUT 23 MILLION TO 24 MILLION BAGS EACH BAG REPRESENTS 13228 POUNDS OF COFFEE BRAZIL HAD BEEN PRODUCING AS MUCH AS 30 MILLION BAGS A YEAR IN THE LATE 1980S THOSE EARLIER PREDICTIONS OF AS MANY AS 24 MILLION BAGS OF OUTPUT AND A LACK OF ANY CONSTRUCTIVE NEWS FROM CONTINUING TALKS BETWEEN COFFEEPRODUCING AND CONSUMING NATIONS IN LONDON HAD TRIGGERED A STEEP 20 DECLINE IN COFFEE FUTURES PRICES SINCE THE BEGINNING OF THE YEAR ON MONDAY PRICES RECOVERED 265 CENTS A POUND ON TECHNICALLY DRIVEN SHORTCOVERING BY SPECULATORS YESTERDAY'S GAIN ANALYSTS SAID WAS BASED CHIEFLY ON FUNDAMENTAL SUPPORT PROVIDED BY THE MAN CROP ESTIMATE THE MAN REPORT DID POINT TO A FAIRLY SMALL 199394 CROP PRODUCTION AND THE IMPLICATION IS THAT BRAZIL WILL NOT BE ABLE TO BOOST EXPORTS DURING THE YEAR SAID ARTHUR STEVENSON A SENIOR COMMODITY ANALYST WITH PRUDENTIAL SECURITIES HE SAID HE EXPECTED COFFEE PRICES TO SHOW A FIRMER TONE OVER THE LONGTERM PARTICULARLY IF THE MAN FORECAST PROVES ON THE MARK I THINK THIS IS A VERY CONSTRUCTIVE ITEM POTENTIALLY ORANGE JUICE PRICES FOR CONCENTRATED ORANGE JUICE FOR MARCH DELIVERY ENDED MARGINALLY HIGHER AMID TECHNICALLY DRIVEN TRADING ANALYSTS SAID THE ACTIVELY TRADED MARCH CONTRACT SETTLED AT 69 CENTS A POUND UP 070 CENT PRICES HAD BEEN PLUNGING IN RECENT WEEKS ON CONCERNS OVER BOUNTIFUL CROPS IN FLORIDA AND BRAZIL I THINK THESE PRICES WERE ATTRACTING SOME BOTTOM FISHING AT THESE LOW LEVELS SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH 9302030087 930203 BUSINESS BRIEF AMERICAN RE CORP SHARE UNDERWRITERS TAKE FULL OVERALLOTMENT OPTION AMERICAN RE CORP AFTER A STRONG INITIAL PUBLIC OFFERING LAST WEEK SAID ITS UNDERWRITERS TOOK THEIR FULL OVERALLOTMENT OPTION TO SELL MORE SHARES THE PRINCETON NJ PROPERTY AND CASUALTY REINSURER MADE ITS INITIAL PUBLIC OFFERING LAST WEEK SELLING 116 MILLION SHARES AT 31 EACH UNDERWRITERS LED BY MERRILL LYNCH & CO EXERCISED THEIR OVERALLOTMENT OPTION TO SELL AN ADDITIONAL 1740000 SHARES AT THE 31 PRICE BRINGING TOTAL GROSS PROCEEDS OF AMERICAN RE'S INITIAL OFFERING TO 4135 MILLION AMERICAN RE'S NET PROCEEDS ARE EXPECTED TO BE 3911 MILLION 9302030086 930203 RJR NABISCO NET PLUNGES 72 CHARGE IS CITED BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP REPORTED A 72 DROP IN FOURTHQUARTER NET INCOME AFTER TAKING A 162 MILLION CHARGE TO RETIRE DEBT AND CUT COSTS EXCLUDING THE CHARGE OPERATING EARNINGS WERE DOWN 5 IN THE QUARTER OPERATING EARNINGS WERE DOWN AT BOTH THE TOBACCO AND FOOD UNITS THE COMPANY'S RJ REYNOLDS TOBACCO UNIT CONTINUED TO BE HARD HIT BY THE SHIFT TO CHEAPER CIGARETTES AND THE NABISCO FOOD BUSINESS SUFFERED FROM RESTRAINED CONSUMER SPENDING ACCORDING TO THE COMPANY FOURTHQUARTER NET INCOME WAS 45 MILLION OR THREE CENTS A SHARE DOWN FROM 161 MILLION OR 14 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 3 TO 409 BILLION FROM 398 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS RJR'S SHARES WERE TRADING LATE YESTERDAY AT 8625 OFF 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EMANUEL GOLDMAN AN ANALYST WITH PAINEWEBBER INC IN SAN FRANCISCO SAID THE COMPANY'S WINSTON AND SALEM BRANDS HAD A SHARPER DROP IN SALES THAN OTHER FULLPRICED CIGARETTES LAST YEAR THEY WERE NOT PARTICULARLY PLEASED BY THAT HE SAID THEY STILL HAVE THEIR WORK CUT OUT IN TERMS OF DOMESTIC TOBACCO OPERATING INCOME MR GOLDMAN CALLED THE HEALTH OF RJ REYNOLDS THE SWING ISSUE IN THE COMPANY'S PERFORMANCE IN THE FOURTH QUARTER THE PROFIT CONTRIBUTION OF REYNOLDS DROPPED 8 TO 610 MILLION FROM 637 MILLION A YEAR EARLIER THE COMPANY SAID PROFIT WAS HURT BY HEAVY MARKETING EXPENDITURES AIMED AT SHORING UP ITS SAGGING BRANDS RJR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LOUIS V GERSTNER JR SAID HE WAS ENCOURAGED THAT THE COMPANY WAS ABLE TO RAISE PRICES FOR ITS PRIVATELABEL CIGARETTES BY THE END OF 1992 NABISCO IS ENTERING 1993 HE SAID WITH MORE THAN 100 NEW PRODUCTS FOR THE FULL YEAR INCLUDING A 513 MILLION CHARGE LARGELY FOR THE REPURCHASE AND RETIREMENT OF HIGHCOST DEBT RJR REPORTED PROFIT OF 299 MILLION OR 20 CENTS A SHARE DOWN FROM 368 MILLION OR 22 CENTS A SHARE A YEAR EARLIER MR GERSTNER SAID ALTHOUGH OUR AMBITIOUS REFINANCING PROGRAM REDUCED OUR REPORTED OPERATING EARNINGS LAST YEAR THE BENEFITS FAR OUTWEIGH THE COSTS HE SAID RJR'S 1993 INTEREST EXPENSE WILL BE REDUCED SUBSTANTIALLY AS A RESULT 9302030085 930203 TECHNOLOGY CAFFEINE HAS NO ILL EFFECTS ON PREGNANCY STUDY SAYS NEW YORK A STUDY THAT MONITORED 431 PREGNANT WOMEN FAILED TO FIND ANY ILL EFFECTS FROM THE WOMEN'S CONSUMPTION OF COFFEE AND OTHER CAFFEINATED DRINKS THE RESEARCHERS SAID THE RATE OF MISCARRIAGES WAS NO DIFFERENT IN WOMEN WHO DRANK MODERATE AMOUNTS OF COFFEE COLAS TEA OR COCOA THAN IN THOSE WHO DIDN'T DRINK THESE CAFFEINATED BEVERAGES ACCORDING TO A REPORT IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE RESEARCHERS ALSO FOUND THAT IN THE INFANTS BORN TO CAFFEINECONSUMING MOTHERS THE FETAL GROWTH RATE WAS ABOUT THE SAME AS IN BABIES BORN TO MOTHERS WHO ABSTAINED FROM CAFFEINE THE SLIGHTLY LOWER BIRTH WEIGHT AND SMALLER HEAD CIRCUMFERENCE DETECTED IN INFANTS OF COFFEEDRINKERS WAS EXPLAINED BY THE FACT THESE MOTHERS TENDED TO SMOKE MORE THAN NONDRINKERS OF COFFEE THE STUDY WAS CARRIED OUT BY A GROUP OF MEDICAL CENTERS UNDER THE AEGIS OF THE FEDERAL NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT THE STUDY WAS UNDERTAKEN BECAUSE OF THE CONFLICTING FINDINGS OF PAST STUDIES THAT EITHER FOUND OR REFUTED LINKS BETWEEN CAFFEINE AND MISCARRIAGES AND BIRTH DEFECTS THE RESEARCHERS SAID THE RESULTS APPLIED ONLY TO MODERATE CONSUMPTION OF CAFFEINE AND DIDN'T RULE OUT ILL EFFECTS OF HIGH DOSES OF THE STIMULANT OF THE 431 WOMEN ONLY 24 CONSUMED MORE THAN 300 MILLIGRAMS OF CAFFEINE DAILY THE EQUIVALENT OF THREE CUPS OF COFFEE 9302030084 930203 WHO'S NEWS GRUBB & ELLIS NAMES HANAUER CHAIRMAN SUCCEEDING GROVES SAN FRANCISCO GRUBB & ELLIS CO NAMED JOE F HANAUER CHAIRMAN OF THE REAL ESTATE CONCERN WHICH HAS JUST COMPLETED A RESTRUCTURING HE SUCCEEDS MARVIN M GROVES WHO RESIGNED MR HANAUER A 55YEAROLD PARTNER AT COMBINED INVESTMENTS LP AN INVESTMENT FIRM IN LAGUNA BEACH CALIF LAST WEEK TEAMED UP WITH WARBURG PINCUS INVESTORS LP TO GAIN A 447 STAKE IN GRUBB & ELLIS IN EXCHANGE FOR A 138 MILLION CASH INFUSION PRUDENTIAL INSURANCE CO OF AMERICA HAS A 258 STAKE WITH SHAREHOLDERS RETAINING THE REST AS A PART OF THE DEAL THE COMPANY'S BOARD RESIGNED EN MASSE INCLUDING FOUNDER HAROLD A ELLIS JR WHO HAD BEEN FORCED TO QUIT AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN MAY ELECTED TO THE BOARD WERE DOUGLAS M KARP 37 AND REUBEN S LEIBOWITZ 45 BOTH DIRECTORS OF WARBURG JOHN P MULLMAN 32 A VICE PRESIDENT WITH PRUDENTIAL JOHN D SANTOLERI 29 A VICE PRESIDENT OF WARBURG PINCUS VENTURES INC A SUBSIDIARY OF WARBURG AND WILBERT F SCHWARTZ 51 A DIRECTOR OF PRUDENTIAL INVESTMENT CORP A SUBSIDIARY OF PRUDENTIAL REELECTED TO THE BOARD WERE KENNETH E FIELD 49 JOSEPH F HAMILTON 41 AND ALVIN L SWANSON JR 59 WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER NOT STANDING FOR REELECTION WERE EMMETT R DEMOSS JR DONALD V JONES ROBERT C KYLE HENRY S MILLER JR VANCE C MILLER SR AND ALBERT J TOOLE III IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GRUBB & ELLIS CLOSED AT 3875 UP 625 CENTS 9302030083 930203 MCDONNELL DOUGLAS UNIT SEE DEBT RATINGS LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON 5 BILLION OF DEBT OF MCDONNELL DOUGLAS CORP AND ITS MCDONNELL DOUGLAS FINANCE CORP SUBSIDIARY CITING THE DETERIORATING OUTLOOK FOR THE COMPANY'S COMMERCIAL AIRCRAFT AND DEFENSE BUSINESSES THE PARENT COMPANY'S SENIOR DEBT RATING WAS LOWERED TO BA2 FROM BAA3 WHILE THE SHORTTERM DEBT RATING FOR COMMERCIAL PAPER WAS CUT TO NOT PRIME FROM PRIME3 RATINGS ON THE SENIOR DEBT OF MCDONNELL DOUGLAS FINANCE WERE REDUCED TO BA1 FROM BAA2 ON SUBORDINATED DEBT TO BA3 FROM BA1 AND ON ITS SHELF REGISTRATION TO P BA1 AND P BA3 FROM P BAA2 AND P BA1 MOODY'S SAID IT EXPECTS MCDONNELL DOUGLAS'S DEFENSE BUSINESS TO DECLINE AS A RESULT OF SHRINKING DEFENSE BUDGETS AND THAT FINANCIAL UNCERTAINTIES RELATED TO ITS C17 MILITARY TRANSPORT PROGRAM AND THE TERMINATION OF ITS A12 NAVY ATTACK PLANE CONTRACT ARE LIKELY TO PERSIST THE RATING AGENCY ADDED THAT IT BELIEVES ORDERS FOR MCDONNELL DOUGLAS COMMERCIAL AIRCRAFT WILL SHRINK AT A RATE GREATER THAN FOR OTHER PRODUCERS DUE TO THE COMPANY'S RELATIVELY LIMITED PRODUCT LINE AND ITS REDUCED FINANCIAL FLEXIBILITY WHICH PLACES IT AT A DISADVANTAGE IN OFFERING AIRCRAFT FINANCING A GROWING INDUSTRY TREND MOODY'S NOTED THAT IF MCDONNELL DOUGLAS DOESN'T RECEIVE SIZABLE NEW COMMERCIAL AIRCRAFT ORDERS IT MAY HAVE TO LEAVE THE BUSINESS A SPOKESWOMAN FOR MCDONNELL DOUGLAS SAID WE'RE SHOCKED AT THEIR ACTIONS AND WE DON'T UNDERSTAND IT SHE SAID THE COMPANY WOULD ISSUE A STATEMENT TODAY REACTING FURTHER TO THE DOWNGRADES 9302030082 930203 ECONOMY LEADING INDEX GREW BY 19 IN DECEMBER BROADLY BASED GAIN WAS BIGGEST SINCE APRIL '83 NEW HOME SALES RISE BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN WHAT APPEARS TO BE GOOD NEWS FOR THE ECONOMIC FUTURE THE GOVERNMENT'S INDEX OF LEADING INDICATORS JUMPED 19 IN DECEMBER IT WAS THE BIGGEST INCREASE SINCE APRIL 1983 THE COMMERCE DEPARTMENT SAID THE INDEX WHICH ATTEMPTS TO MEASURE THE HEALTH OF THE US ECONOMY SEVERAL MONTHS DOWN THE ROAD HAS IMPROVED STEADILY SINCE FALL IN OCTOBER IT ROSE 05 AND IN NOVEMBER 07 NINE OF THE INDEX'S 11 INDICATORS IMPROVED WITH THE BIGGEST GAIN IN CONSUMER EXPECTATIONS ALSO CHANGING FAVORABLY WERE CLAIMS FOR UNEMPLOYMENT BENEFITS FACTORY ORDERS FOR CONSUMER GOODS AND MATERIALS ORDERS FOR PLANT AND EQUIPMENT FACTORY ORDER BACKLOGS BUILDING PERMITS STOCK PRICES THE AVERAGE WORKWEEK AND LAGS IN DELIVERIES THE CATEGORIES THAT WEIGHED THE INDEX DOWN THE CHANGE IN THE MONEY SUPPLY AND PRICES OF SENSITIVE MATERIALS ALSO HAD THEIR BRIGHT SIDE SUGGESTING INFLATION WILL CONTINUE TO BE LOW THE BROAD STRENGTH IN THE INDEX IS ANOTHER INDICATION THAT THE ECONOMY IS BECOMING MORE CONSISTENT IN ITS GROWTH EVEN IF THE PROGRESS IS SLOW RECENT GOVERNMENT DATA HAVE SHOWN GATHERING MOMENTUM IN THE INDUSTRIAL SECTOR MORE CONSUMER SPENDING AND STEADIER GROWTH ACROSS MUCH OF THE NATION ANALYSTS CAUTIONED HOWEVER THAT THE ROBUST INCREASE IN THE INDEX ISN'T LIKELY TO CONTINUE THAT'S BECAUSE INITIAL CLAIMS FOR UNEMPLOYMENT BENEFITS HAVE GONE UP IN RECENT WEEKS AND THERE HAVE BEEN WARNING SIGNS THAT CONSUMER OPTIMISM HAS LEVELED OFF SEPARATELY THE COMMERCE DEPARTMENT SAID SALES OF NEW HOMES ROSE 63 IN DECEMBER TO AN ANNUAL RATE OF 656000 THE INCREASE FOLLOWS DROPS OF 02 IN NOVEMBER AND 79 IN OCTOBER LAST MONTH'S IMPROVEMENT WAS CONCENTRATED IN THE SOUTH AND MIDWEST FOR THE YEAR NEW HOME SALES WERE UP 195 TO 608000 AFTER FALLING IN 1991 IMPROVEMENT WAS MADE ACROSS ALL REGIONS OF THE COUNTRY PARTICULARLY THE MIDWEST WHERE HOME SALES INCREASED NEARLY 25 FOR THE YEAR ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS AND INFLATION HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS AFTER VARIOUS ADJUSTMENTS THEY PRODUCED A 19 INCREASE IN THE INDEX FOR DECEMBER AND A 07 INCREASE FOR NOVEMBER THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR DECEMBER AND THE CHANGE FROM NOVEMBER ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 119 DOWN FROM 180 IN NOVEMBER 9302030081 930203 CIA HAD EARLY KNOWLEDGE OF LOANS TO IRAQ BY BNL REP GONZALEZ SAYS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ SAID THAT INFORMATION FROM BRITISH INTELLIGENCE INDICATES US INTELLIGENCE AGENCIES KNEW ABOUT IRAQ'S LARGE LOANS FROM BANCA NAZIONALE DEL LAVORO'S ATLANTA BRANCH MONTHS BEFORE THE BANK WAS RAIDED BRITISH INTELLIGENCE AGENTS LEARNED THAT IRAQ WAS USING THE ATLANTA BRANCH TO FINANCE MILITARYRELATED ITEMS FOUR MONTHS BEFORE FEDERAL AGENTS RAIDED THE BANK REP GONZALEZ SAID THE TEXAS DEMOCRAT SAID THE BRITISH GOVERNMENT'S CHIEF SPY IN THE CASE PAUL HENDERSON A DIRECTOR OF TOOL MANUFACTURER MATRIXCHURCHILL LTD HAS TOLD BANKING COMMITTEE INVESTIGATORS THAT THE BRITISH AGENTS HE ALERTED ABOUT THE BNLATLANTA CONNECTION ASSURED HIM THAT THE INFORMATION WOULD BE PASSED ON TO US INTELLIGENCE AGENCIES MATRIXCHURCHILL IS AN IRAQIOWNED BRITISHBASED CONCERN US BANKING OFFICIALS HAVE SAID THEY FIRST LEARNED ABOUT THE BNLATLANTA PROBLEM IN LATE JULY 1989 FROM TWO INFORMERS AT THE BANK FEDERAL AGENTS RAIDED THE BANK ON AUG 4 1989 SINCE 1991 FORMER CENTRAL INTELLIGENCE AGENCY CHIEF ROBERT GATES AND OTHER AGENCY OFFICIALS HAVE TOLD THE BANKING COMMITTEE THAT THE SPY AGENCY HAD NO KNOWLEDGE OF BNL'S HUGE LOANS TO IRAQ UNTIL AFTER THE ATLANTA BRANCH WAS RAIDED MR HENDERSON'S EVIDENCE STRONGLY SUGGESTS THAT THESE CLAIMS ARE UNTRUE REP GONZALEZ ASSERTED IN A STATEMENT ON THE HOUSE FLOOR YESTERDAY THE RAID ON BNLATLANTA WHICH ISSUED IRAQ MORE THAN 21 BILLION OF ALLEGEDLY UNAUTHORIZED LOANS SHOOK THE US FINANCIAL COMMUNITY AND BANKING OFFICIALS FEARED AT THE TIME THAT IT MIGHT START A RUN ON THE HUGE ITALIAN GOVERNMENTOWNED BANK MR GONZALEZ NOTING THAT THE CIA AND BRITISH INTELLIGENCE AGENCIES HAVE SHARED SECRET INFORMATION SINCE WORLD WAR II SAID HE WANTS TO KNOW WHETHER THE CIA DELIBERATELY WITHHELD BNL INFORMATION FROM BANK REGULATORS ACCORDING TO MR HENDERSON HIS HANDLERS FROM MI6 THE BRITISH INTELLIGENCE AGENCY MADE IT CLEAR THAT INFORMATION GATHERED ON US FIRMS WAS PASSED TO US INTELLIGENCE MR GONZALEZ SAID THE CIA HAS WITHHELD COMMENT ABOUT WHAT IT KNEW ABOUT THE BANK UNTIL AN INVESTIGATION OF ITS INTERNAL REPORTING SYSTEM IS COMPLETED MEANWHILE THE SENATE INTELLIGENCE COMMITTEE IS ABOUT TO RELEASE THE RESULTS OF ITS INVESTIGATION OF THE MATTER WHICH CENTERS ON CHARGES THAT THE CIA WITHHELD SOME INTELLIGENCE INFORMATION ON BNLATLANTA'S ACTIVITIES FROM JUSTICE DEPARTMENT OFFICIALS WHO ALSO WITHHELD INFORMATION FROM THE DEPARTMENT'S INVESTIGATORS IN ATLANTA IN A RELATED MATTER FEDERAL DISTRICT JUDGE MARVIN SHOOB IN ATLANTA HAS ORDERED THE CIA TO MAKE AVAILABLE ITS CLASSIFIED DOCUMENTS ON THE MATTER FOR A MARCH HEARING THE JUDGE PRESIDED OVER THE SENTENCING HEARING FOR THE MANAGER OF BNLATLANTA CHRISTOPHER DROGOUL WHO LATER WITHDREW HIS GUILTY PLEA THE JUDGE SAID HE NEEDS THE INFORMATION FOR A SENTENCING HEARING SCHEDULED FOR SIX OTHER DEFENDANTS IN THE CASE WHO HAVE MADE GUILTY PLEAS MR GONZALEZ SAYS HE WILL USE THE BNL CASE TO IMPROVE US CONTROLS OVER SOME 700 BILLION OF ASSETS BY FOREIGN BANKS IN THE US HE CHARGED THE CIA HAS FAILED TO HELP IN THAT EFFORT BY GIVING HIS COMMITTEE THE IMPRESSION THAT IT HAD LITTLE SPECIFIC EARLY KNOWLEDGE OF MATRIXCHURCHILL'S DEALINGS WITH IRAQ MATRIXCHURCHILL OPERATED IN THE US THROUGH A CLEVELAND SUBSIDIARY 9302030080 930203 INTERNATIONAL BRIEF MATRAHACHETTE MERGED FIRM EXPECTS TO POST 1992 PROFIT OF 632 MILLION NEWLY MERGED MATRAHACHETTE SAID IT SHOULD POST A PROFIT OF ABOUT 350 MILLION FRENCH FRANCS 632 MILLION AND CONSOLIDATED REVENUE OF 551 BILLION FRANCS FOR 1992 THE FRENCH MEDIA AND DEFENSE COMPANY SAID THE PROFIT FIGURE MATCHES PREVIOUS PREDICTIONS AND TAKES INTO ACCOUNT ALL EXCEPTIONAL ELEMENTS INCLUDING ASSET SALES AND THE EFFECTS OF THE MERGER THE GROUP FORMED LAST MONTH FROM THE MERGER OF DEFENSE FIRM MATRA AND MEDIA GROUP HACHETTE SAID 1993 REVENUE GROWTH WILL BE MODEST HOWEVER NET INCOME IS EXPECTED TO PROGRESS VERY SUBSTANTIALLY BECAUSE OF IMPROVED PROFITABILITY IN NORTH AMERICAN OPERATIONS AND LOWER FINANCIAL CHARGES CHAIRMAN JEANLUC LAGARDERE ALSO SAID THAT IN THE DEFENSE AREA HE FORESEES RAPPROCHEMENTS WITH OTHER MAJOR DEFENSE GROUPS HE GAVE NO DETAILS 9302030079 930203 BUSINESS BRIEF NIAGARA MOHAWK POWER CORP LAYOFF OF 1400 EMPLOYEES PLANNED OVER THREE YEARS CITING INCREASED COMPETITION FROM INDEPENDENT POWER SOURCES NIAGARA MOHAWK POWER CORP SAID IT PLANS TO LAY OFF ABOUT 1400 EMPLOYEES IN THE NEXT THREE YEARS WE ARE LOOKING TO REDESIGN THE COMPANY TO FACE THE NEW ENVIRONMENT A SPOKESWOMAN SAID WE NEED TO BECOME MORE EFFICIENT AND COMPETITIVE IN THIS MARKET WHILE MAINTAINING OUR RESPONSIVENESS AND SAFETY STANDARDS THE SYRACUSE NY ELECTRIC AND GAS UTILITY SAID THE LAYOFFS INCLUDING A PREVIOUSLY ANNOUNCED PLAN TO LAY OFF 400 WORKERS IN THE NUCLEAR DIVISION WOULD OCCUR THROUGHOUT THE COMPANY THE LAYOFFS WILL INCLUDE UNION AND MANAGEMENT JOBS AND THE COMPANY INTENDS TO ELIMINATE THE JOBS PRIMARILY THROUGH ATTRITION NIAGARA MOHAWK IS AN INVESTOROWNED UTILITY SERVING ABOUT 15 MILLION CUSTOMERS ACROSS UPSTATE NEW YORK 9302030078 930203 BUSINESS BRIEF PEOPLESOFT INC FIRM'S 4THQUARTER PROFIT JUMPED 62 STOCK SOARS PEOPLESOFT INC RIDING THE WAVE OF DEMAND FOR SOFTWARE THAT RUNS ON NETWORKS OF COMPUTERS POSTED A 62 RISE IN PROFIT FOR THE FOURTH QUARTER ITS FIRST PERIOD AS A PUBLIC COMPANY IN OVERTHECOUNTER TRADING YESTERDAY PEOPLESOFT SHARES JUMPED 3 TO 3975 THE WALNUT CREEK CALIF SOFTWARE MAKER'S NET INCOME ROSE TO 19 MILLION OR 18 CENTS A SHARE FROM 12 MILLION OR 13 CENTS A SHARE A YEAR EARLIER REVENUE JUMPED 50 TO 107 MILLION FROM 71 MILLION FOR THE YEAR NET INCOME INCREASED TO 48 MILLION OR 48 CENTS A SHARE FROM 19 MILLION OR 20 CENTS A SHARE IN 1991 REVENUE SOARED 84 TO 316 MILLION FROM 171 MILLION PEOPLESOFT HAS GROWN RAPIDLY FROM SALES OF ITS PERSONNELMANAGEMENT SOFTWARE WHICH IS GEARED TOWARD CORPORATIONS THAT USE NETWORKS OF COMPUTERS 9302030077 930203 LETTERS TO THE EDITOR THE GOOD HUNTER'S CODE OF CONDUCT HOW SAD TO SEE THAT ONCE AGAIN THE WORST APPLES IN THE HUNTING BARREL ARE GETTING ALL THE ATTENTION ROBOBAMBIS LURE THE TRIGGER HAPPY INTO ACTS OF VIOLENCE PAGE ONE DEC 23 DESPITE THE IMAGE PORTRAYED IN YOUR ARTICLE AND OTHERS LIKE IT MOST HUNTERS ARE NOT SLOBS OR WILDLIFE CRIMINALS UNFORTUNATELY THE ETHICAL HUNTER'S STORY REMAINS UNTOLD IN FACT THE USE OF ROBOBAMBI DECOYS TO SNARE ROAD HUNTERS AND POACHERS RESULTED FROM THE DEMANDS OF LEGITIMATE ETHICAL HUNTERS OFFENDED BY THE ILLEGAL BEHAVIOR OF A LIMITED NUMBER OF OUTDOOR OUTLAWS THE HUNTING COMMUNITY RECOGNIZES THAT WITH AN ESTIMATED 17 MILLION HUNTERS IN THE US PROBLEMS SUCH AS OUTBREAKS OF DEER SEASON DEMENTIA ARE UNAVOIDABLE BUT THIS IS A MATTER ON WHICH HUNTERS AND NONHUNTERS CAN AGREE THE OUTLAWS OF HUNTING THOSE WHO VIOLATE WILDLIFE LAWS ENDANGER OTHERS WITH THEIR FIREARMS HUNT WITHOUT PERMISSION ON PRIVATE LAND AND YES SHOOT DECOY DEER FROM ROADS MUST BE STOPPED NOW VOLUNTEER HUNTER EDUCATION INSTRUCTORS HAVE TAUGHT THOUSANDS OF STUDENTS HOW TO HUNT LEGALLY AND RESPONSIBLY IN ADDITION BROADSCALE EFFORTS ARE UNDER WAY TO HELP ENSURE THAT ALL HUNTERS UNDERSTAND THEIR ETHICAL RESPONSIBILITIES TO WILDLIFE THE ENVIRONMENT THE PUBLIC AND THEMSELVES IN OCTOBER 1992 THE IZAAK WALTON LEAGUE OF AMERICA CONVENED A PANEL OF HUNTING AND CONSERVATIONORGANIZATION REPRESENTATIVES TO HAMMER OUT A CODE OF CONDUCT ALL HUNTERS COULD USE IN THE FIELD THE CODE WILL BE RELEASED TO THE PUBLIC IN JUNE 9302030076 930203 INTERNATIONAL BRIEF THAI AIRWAYS INTERNATIONAL PROFIT PLUNGES AS EXPENSES RISE AND COMPETITION GROWS THAI AIRWAYS INTERNATIONAL THAILAND'S FLAGSHIP CARRIER SAID THAT REGIONAL COMPETITION AND RISING EXPENSES CAUSED NET INCOME TO NOSEDIVE IN THE FIRST QUARTER ENDED DEC 31 THE COMPANY ALSO ANNOUNCED VAGUE PLANS TO CUT COSTS AND BOOST EARNINGS THIS YEAR MAINLY BY POSTPONING SOME UNSPECIFIED INVESTMENTS AND PROMOTING ITS MORE LUCRATIVE BUSINESS AND FIRSTCLASS SERVICE THE AIRLINE REFUSED HOWEVER TO RELEASE DETAILED FINANCIAL INFORMATION AND IT WOULDN'T SAY WHETHER THE STEEP EARNINGS DROP RECORDED IN THE FIRST QUARTER WOULD FORCE IT TO LOWER ITS PROFIT PROJECTIONS FOR THE YEAR THAI AIRWAYS' PROFIT PLUNGED 85 TO 120 MILLION BAHT 47 MILLION IN THE FISCAL FIRST QUARTER FROM 7922 MILLION BAHT IN THE FIRST QUARTER OF 1991 IN DECEMBER THE AIRLINE FORECAST PRETAX PROFIT OF 802 BILLION BAHT IN THE CURRENT FISCAL YEAR 9302030075 930203 TECHNOLOGY BRIEF SEQUOIA SYSTEMS INC SUIT BROUGHT BY ULTIMATE OVER RESELL PACT IS SETTLED SEQUOIA SYSTEMS INC AND ULTIMATE CORP SAID THEY SETTLED A LAWSUIT BY ULTIMATE ALLEGING THAT SEQUOIA HAD VIOLATED TERMS OF AN AGREEMENT UNDER WHICH ULTIMATE RESELLS COMPUTERS MADE BY SEQUOIA TERMS OF THE SETTLEMENT WEREN'T DISCLOSED SEQUOIA MARLBOROUGH MASS SAID WHEN THE SUIT WAS FILED IN NOVEMBER THAT ULTIMATE OWED IT 26 MILLION SEQUOIA SAID MOST OF THE MONEY OWED IT BY ULTIMATE HAS BEEN PAID AND THE REMAINING AMOUNT IS EXPECTED TO BE PAID IN COMING MONTHS THE COMPANIES ALSO SAID ULTIMATE EAST HANOVER NJ ENTERED INTO A NEW NONEXCLUSIVE RESELLER AGREEMENT UNDER WHICH IT WILL SELL SEQUOIA'S FAULTTOLERANT COMPUTERS SEQUOIA SAID THE AGREEMENT ALLOWS IT TO SELL PRODUCTS DIRECTLY TO CERTAIN CUSTOMERS DEALERS AND DISTRIBUTORS THAT PREVIOUSLY WERE CONSIDERED EXCLUSIVE TO ULTIMATE 9302030074 930203 HEARD ON THE STREET DH BLAIR & CO'S MOST RECENT OFFERING SHOWS HOW SPECULATIVE IPOS ARE GETTING BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANYONE WHO DOUBTS THAT A SPECULATIVE FRENZY IS SWEEPING THROUGH THE INITIALPUBLICOFFERING MARKET MAY WANT TO TAKE A LOOK AT THE RECENTLY LAUNCHED IPO OF ADVANCED MAMMOGRAPHY SYSTEMS THIS DEVELOPMENTSTAGE COMPANY WAS BROUGHT TO MARKET LAST WEEK AT 6 BY DH BLAIR & CO A FREQUENT UNDERWRITER OF STOCK OFFERINGS BY VERY RISKY COMPANIES PRESTO THE STOCK'S NOW AT 7 3/4 A CHALKING UP A 29 GAIN IN A WEEK THE COMPANY SOLD A 26 STAKE TO INVESTORS RAISING 78 MILLION WHAT DID THEY GET THE COMPANY HAS NO PRODUCTS FOR SALE IT HAS NO REVENUE IT EXPECTS OPERATING LOSSES FOR THE FORESEEABLE FUTURE AUDITORS HAVE EXPRESSED SUBSTANTIAL DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN THE COMPANY DID THE IPO TO FINANCE AN INITIAL PROTOTYPE OF A NEW DEVICE TO DETECT BREAST CANCER A REAL PRODUCT WON'T EMERGE FOR SEVERAL YEARS IF AT ALL THE UNDERWRITER AND PRINCIPAL SUPPORTER OF THE STOCK DH BLAIR REMAINS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION WHILE THE EXISTENCE OF SUCH A PROBE BY ITSELF ISN'T NEWS THE PROSPECTUS MAKES THE INQUIRY SOUND MORE SERIOUS THAN BLAIR PREVIOUSLY LET ON THE SEC PROBE IS BROAD IN SCOPE AND INVOLVES NEARLY ALL ASPECTS OF BLAIR'S COMPLIANCE WITH FEDERAL SECURITIES LAWS THE PROSPECTUS SAYS IN OTHER WORDS THIS COULD BE A BIGGER DEAL THAN WHEN BLAIR SETTLED AN UNFAIRPRICING CASE WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN 1989 PAYING A 25000 FINE DH BLAIR'S PRESIDENT KENTON E WOOD SAYS THE SEC INVESTIGATION HAS BEEN GOING ON NOW FOR CLOSE TO FOUR YEARS SO THAT'S NOT A NEW EVENT HIS FIRM BLAMES THE SEC PROBE ON COMPETITORS AND DISGRUNTLED EXEMPLOYEES WE KNOW OF NOTHING WE'VE BEEN DOING WRONG HE SAYS AN SEC SPOKESMAN YESTERDAY DECLINED TO COMMENT ABOUT THE INVESTIGATION EVEN CONSIDERING THE REDHOT IPO MARKET AND BLAIR'S SALESMANSHIP SOME TRADERS SAY IT'S ASTOUNDING THAT INVESTORS HOPPED ABOARD THIS RIDE AS DESCRIBED IN A FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL IN 1991 BLAIR HAS UNDERWRITTEN STOCKS OF MORE THAN 200 SMALL COMPANIES SINCE 1980 OFTEN THE ISSUES RISE IN PRICE FOR MONTHS OR YEARS WHICH BENEFITS BLAIR'S OWNER J MORTON DAVIS WHO OFTEN TAKES A STAKE IN THE OFFERINGS BUT THE SEC IS INVESTIGATING WHETHER BLAIR BLOCKS SMALL INVESTORS FROM SELLING SHARES WHEN THEY WANT TO ALLOWING MR DAVIS AND OTHERS TO SELL OUT AT A PROFIT BEFORE THE NEW ISSUES DECLINE AN UNFAVORABLE RESOLUTION OF THE SEC'S INVESTIGATION OF BLAIR COULD HAVE THE EFFECT OF LIMITING BLAIR'S ABILITY TO MAKE A MARKET IN ADVANCED MAMMOGRAPHY SHARES SAYS THE PROSPECTUS THE SAME WARNING COULD APPLY TO BLAIR'S HANDFUL OF OTHER RECENT OFFERINGS INCLUDING LASER VIDEO NETWORK LIFE MEDICAL SCIENCES LAS VEGAS ENTERTAINMENT AND HEALTH IMAGE MEDIA SO WHY WOULD ANY INVESTOR BUY THE ADVANCED MAMMOGRAPHY DEAL THEY LIKE THE RISK/REWARD OPPORTUNITY SAYS DH BLAIR'S PRESIDENT MR WOOD IPO WATCHERS SAY THEY'RE SEEING MORE NEWISSUE GAMBITS LIKE ADVANCED MAMMOGRAPHY DURING THE CURRENT BULL MARKET FOR IPOS SEVERAL COMPANIES LATELY HAVE BEEN TRYING TO GO PUBLIC WITHOUT HAVING ANY REVENUES OR WITHOUT HAVING ANY STRONG PROSPECTS SAYS KEITH GOGGIN MANAGING EDITOR OF IPO REPORTER A NEWSLETTER I REALLY DON'T KNOW WHO THEY SELL THIS STUFF TO MR GOGGIN HAS A THEORY ABOUT WHY RISKY NEW ISSUES SUCCEED THE SEC REQUIRES SO MUCH DISCLOSURE ABOUT RISK IN PROSPECTUSES THAT EVEN OFFERINGS AS RISKY AS ADVANCED MAMMOGRAPHY DON'T LOOK TOO BAD BY COMPARISON IT'S ALMOST LIKE CRYING WOLF HE SAYS INVESTORS READ SO MUCH ABOUT RISKS THAT THEY START TO IGNORE THEM CERTAINLY THERE'S NO REASON TO IGNORE THE RISKS IN THE ADVANCED MAMMOGRAPHY DEAL THE COMPANY SAYS IT PAID 17 MILLION FOR A LICENSE FROM ITS CORPORATE PARENT SO THAT IT CAN DEVELOP A NEW AND SAFER BREASTSCANNING DEVICE USING MAGNETIC RESONANCE IMAGING THE PARENT IS BLAIRUNDERWRITTEN ADVANCED NMR SYSTEMS ITSELF A DEVELOPMENTSTAGE COMPANY WITH AN ACCUMULATED DEFICIT OF 176 MILLION AS OF SEPTEMBER WITH WHICH ADVANCED MAMMOGRAPHY SHARES OFFICERS AND OFFICES IN WILMINGTON MASS BLAIR'S MR DAVIS OWNS 105 OF ADVANCED NMR AND HIS BROTHER OWNS 119 THE PROSPECTUS SAYS ADVANCED MAMMOGRAPHY'S AUDITOR IS RICHARD A EISNER & CO OF CAMBRIDGE MASS IT'S HIGHLY UNUSUAL TO FIND A GOINGCONCERN QUALIFICATION IN AN AUDITOR'S REPORT FOR A COMPANY GOING PUBLIC SUCH STATEMENTS ARE THE STOCKMARKET EQUIVALENT OF A FLASHING RED LIGHT BUT THIS AUDITOR'S OPINION CONTAINS JUST SUCH A WARNING AND BALDLY STATES MANAGEMENT ANTICIPATES INCURRING SUBSTANTIAL ADDITIONAL LOSSES AS IT PURSUES RESEARCH AND DEVELOPMENT EFFORTS SAY THIS ABOUT BLAIR IT ISN'T SHY DESPITE THE CONTINUING SEC INVESTIGATION THE COMPANY HAS BEEN BEATING ITS BREAST WITH NEWSPAPER ADVERTISEMENTS FEATURING A PHOTOGRAPH OF ABRAHAM LINCOLN THAT CLAIM IT IS THE NO 1 UNDERWRITER OF IPOS ON WALL STREET WITH POSTOFFERING PRICES OF THE BLAIRUNDERWRITTEN STOCKS RISING AN AVERAGE 934 BLAIR MAKES THE ASTOUNDING CLAIM BY USING 1991 DEALS NINE OF THEM AND INCLUDING THE VALUE OF UNIT OFFERINGS MANY BLAIR OFFERINGS ARE UNIT DEALS WHICH CONSIST OF BOTH STOCK AND WARRANTS GIVING HOLDERS THE RIGHT TO BUY SHARES LATER AT A HIGHER PRICE THIS STRUCTURE CAN WORK OUT FINE FOR INVESTORS IN A BULL MARKET BUT MOST INDEPENDENT PERFORMANCERANKING SERVICES PREFER TO LOOK AT STOCK PRICES ALONE RATHER THAN UNITS BECAUSE THE WARRANT PORTION MAY PROVE WORTHLESS DOWN THE ROAD BLAIR'S MR WOOD PREFERS TO COUNT THE VALUE OF HIS FIRM'S UNIT DEALS DOING OTHERWISE HE SAYS IS RIDICULOUS DOING IT BLAIR'S WAY ITS EIGHT 1992 DEALS ROSE AN AVERAGE 574 THE FOURTHBEST PERFORMANCE ON WALL STREET BUT SECURITIES DATA CO AN INDEPENDENT DATA SERVICE CALCULATES THE RISE AS JUST 17 IF ONLY THE STOCK PORTIONS OF THE DEALS ARE TRACKED WALT DISNEY FIGHTS A SHAREHOLDER PROPOSAL TO RESTORE REGULAR QUARTERLY REPORTS TO CERTAIN HOLDERS WHO HAVEN'T RECEIVED THEM SINCE MAY 1991 LIKE OTHER COSTCUTTING COMPANIES DISNEY NO LONGER ROUTINELY SENDS QUARTERLY FINANCIAL REPORTS TO STREETNAME HOLDERS OR THOSE WHO KEEP SHARES WITH THEIR BROKER OR BANK SUCH INVESTORS 58 OF DISNEY'S TOTAL MUST WRITE IN INDIVIDUALLY TO GET THE REPORTS DISNEY HAS SAID THE PROCEDURE SAVES 150000 ANNUALLY BUT THE CUTBACK IRKS SOME SHAREHOLDER ADVOCATES AND BROKERS RICHARD KOSSMANN A DISNEY SHAREHOLDER WHO PUT THE ISSUE ON THE PROXY STATEMENT FOR THE ANNUAL MEETING FEB 23 AFTER SUCCESSFULLY FIGHTING DISNEY'S LAWYERS TO KEEP IT THERE SAYS STREETNAME HOLDERS ARE BEING DISCRIMINATED AGAINST WALL STREET BROKERS AGREE VOWING TO BRING PRESSURE THROUGH THE SECURITIES INDUSTRY ASSOCIATION ON SEVERAL COMPANIES DISNEY IS GOING TO BE THE EXAMPLE SAYS PETER QUICK OF BROKERAGE FIRM QUICK & REILLY SOUNDS LIKE ALADDIN COULD NEED MORE THAN A LAMP TO SETTLE THIS ONE 9302030073 930203 BUSINESS BRIEF TAMBRANDS INC COMPANY POSTS PROFIT GAINS FOR THE QUARTER AND YEAR TAMBRANDS INC REPORTED A BIG INCREASE IN FOURTHQUARTER EARNINGS FROM A YEAR AGO WHEN IT TOOK A RESTRUCTURING CHARGE NET INCOME WAS 311 MILLION OR 80 CENTS A SHARE COMPARED WITH 39 MILLION OR NINE CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED A 235 MILLION RESTRUCTURING CHARGE SALES DECLINED 49 TO 1653 MILLION FROM 1739 MILLION THE WHITE PLAINS NY COMPANY ATTRIBUTED THE EARNINGS IMPROVEMENT TO THE REFORMULATION OF ITS TAMPAX TAMPONS WHICH NOW CARRY HIGHER PRICES A SPOKESMAN SAID THE SALES DECLINE REFLECTS THE DIVESTITURE OF A NUMBER OF NONTAMPON BUSINESSES SINCE THE YEAREARLIER QUARTER FULLYEAR NET SET A RECORD AT 1214 MILLION OR 306 A SHARE COMPARED WITH 79 MILLION OR 192 A SHARE FOR THE PREVIOUS YEAR SALES GREW 35 TO 6841 MILLION FROM 6607 MILLION 9302030072 930203 BUSINESS BRIEF MBIA INC BOND INSURER POSTS INCREASE OF 21 IN 4THQUARTER NET MBIA INC ARMONK NY REPORTED A 21 INCREASE IN FOURTHQUARTER EARNINGS REFLECTING RECORD MUNICIPAL BOND INSURANCE PREMIUMS WRITTEN AND RISING INVESTMENT INCOME NET FOR THE QUARTER INCREASED TO 489 MILLION OR 116 A SHARE FROM 403 MILLION OR 103 A SHARE A YEAR EARLIER FOR THE FULL YEAR NET ROSE 30 TO 1887 MILLION OR 462 A SHARE FROM 1447 MILLION OR 374 A SHARE IN 1991 PERSHARE INCREASES IN EARNINGS WERE AFFECTED BY AN INCREASE IN SHARES OUTSTANDING FOR THE QUARTER AND THE YEAR REVENUE ROSE 19 IN THE QUARTER TO 889 MILLION FROM 746 MILLION NET INVESTMENT INCOME EXCLUDING CAPITAL GAINS ROSE 23 TO 413 MILLION FROM THE YEAREARLIER 335 MILLION THE COMPANY SAID 1992'S EARNINGS RESULTED PARTLY FROM RECORD PREMIUM WRITINGS THAT INCREASED MBIA'S UNEARNED PREMIUM RESERVE A SOURCE OF STEADY INCOME FOR A MUNICIPAL BOND INSURER TO OVER 1 BILLION 9302030071 930203 INTERNATIONAL BRIEF MITSUBISHI HEAVY INDUSTRIES CO PROFIT FORECAST FOR THE YEAR IS CUT AMID SLUGGISH SALES MITSUBISHI HEAVY INDUSTRIES CO A MAJOR JAPANESE SHIPBUILDER AND HEAVY MACHINERY MAKER LOWERED ITS PARENT PROFIT PROJECTIONS FOR THE FISCAL YEAR ENDING MARCH 31 MITSUBISHI SAID IT NOW EXPECTS PRETAX PROFIT OF 140 BILLION YEN 112 BILLION FOR THE YEAR DOWN 10 FROM 15545 BILLION YEN IN THE PREVIOUS YEAR AND 67 BELOW THE 150 BILLION YEN IT FORECAST IN NOVEMBER NET INCOME IS SEEN AT 88 BILLION YEN DOWN 09 FROM 8883 BILLION YEN A YEAR EARLIER AND OFF 22 FROM 90 BILLION YEN FORECAST IN NOVEMBER THE COMPANY PROJECTS SALES OF 248 TRILLION YEN DOWN 02 FROM 2484 TRILLION YEN THE PREVIOUS YEAR AND 08 BELOW THE 25 TRILLION YEN INITIALLY FORECAST THE COMPANY SAID THE REVISION WAS PRECIPITATED IN PART BY SLUGGISH SALES OF INDUSTRIAL MACHINERY SMALL AND MEDIUMSIZE ENGINES AND HOMEUSE AIR CONDITIONERS AMID THE PROTRACTED ECONOMIC SLUMP 9302030070 930203 MARKETING BRIEF LIVE ENTERTAINMENT INC PREPACKAGED REORGANIZATION IS FILED IN BANKRUPTCY COURT LIVE ENTERTAINMENT INC AS EXPECTED FILED A SOCALLED PREPACKAGED PLAN OF REORGANIZATION WITH THE US BANKRUPTCY COURT THE LOS ANGELES HOME VIDEO AND ENTERTAINMENT SOFTWARE COMPANY SAID THE PLAN WOULD COMPLETE THE RESTRUCTURING OF ITS 145 SENIOR SUBORDINATED NOTES DUE 1999 AND SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK THE NEW YORK STOCK EXCHANGE SAID IT IS CONSIDERING DELISTING LIVE'S COMMON STOCK AND SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK AS A RESULT OF THE FILING MICHAEL J WHITE EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF LIVE SAID THE STOCK EXCHANGE'S REVIEW WAS STANDARD IN SUCH CASES AND LIVE IS NOT CONCERNED ABOUT THE STATUS OF ITS COMMON STOCK THE SERIES A CUMULATIVE PREFERRED STOCK WILL BE ELIMINATED AS PART OF THE REORGANIZATION HE ADDED 9302030069 930203 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE FACEOFF BETWEEN HONG KONG AND CHINA INTENSIFIED THE BRITISH COLONY VOWED TO PRESS AHEAD WITH ITS POLITICAL REFORM PLAN ADAMANTLY OPPOSED BY BEIJING DESPITE UNEXPECTED MEDICAL TREATMENT OF THE TERRITORY'S GOVERNOR AND IN AN APPARENT CHALLENGE TO HONG KONG'S PLANNED 106 BILLION AIRPORT BEIJING WILL BUILD ANOTHER INTERNATIONAL AIRPORT IN THE SOUTHERN CHINESE CITY OF CANTON NEAR HONG KONG IN DEFYING HONG KONG ON ITS REFORM AND AIRPORT PLANS CHINA HAS THREATENED TO VOID CONTRACTS THE COLONY SIGNS WITHOUT BEIJING'S APPROVAL BEFORE 1997 WHEN CHINA TAKES CONTROL OF HONG KONG GOV CHRIS PATTEN THE 48YEAROLD DRIVING FORCE FOR THE PROPOSALS TO WIDEN DEMOCRACY WAS TO BE HOSPITALIZED TODAY FOR TREATMENT OF A HEART PROBLEM HE IS LIKELY TO BE OUT OF ACTION FOR TWO WEEKS CHINA SAID THE NEW CANTON AIRPORT TO BE COMPLETED BY 1997 FOR AS MUCH AS 4 BILLION YUAN 6849 MILLION WOULD ALLEVIATE CONGESTION AT CANTON'S BAIYUN AND OTHER SOUTHERN AIRPORTS AND COMPLEMENT HONG KONG'S PLANNED AIRPORT UKRAINE UNVEILED WHAT WAS BILLED AS A 1993 ECONOMIC REFORM PROGRAM THAT ALLOWS FOR FREE ENTERPRISE BUT LEAVES THE STATE FIRMLY IN CHARGE THE PLAN WHICH OFFICIALS ADMITTED MERELY NODS AT A MARKET ECONOMY TIGHTENS CONTROLS PRIVATIZATIONS WILL BE LIMITED TO SMALL ENTERPRISES THAT PRODUCE CONSUMER GOODS TO MAKE FACTORY CHIEFS MORE ACCOUNTABLE PAY WILL BE TIED TO OUTPUT FARMERS WILL GET CREDITS FROM THE GOVERNMENT WHICH ALSO PLANS TO INCORPORATE COLLECTIVE FARMS BUSINESS WILL GET TAX BREAKS AND THE VALUEADDED TAX MAY BE SLASHED TO 20 FROM 33 JAPAN'S ANNUAL LABOR TALKS TO DETERMINE WAGE LEVELS ARE UNDER WAY WITH A TWIST WITH CORPORATE EARNINGS PLUMMETING AND UNEMPLOYMENT RISING AMID A RECESSION MANAGEMENT WOULD SEEM LIKELY TO DEMAND PAY CONCESSIONS BUT UNIONS ARE EXPECTED TO WIN 4 RAISES THIS YEAR AS EMPLOYERS WANT TO MAINTAIN GOOD RELATIONS WHILE BUSINESS GROUPS ARE URGING LABOR TO LOWER ITS EXPECTATIONS AND LABOR MAINTAINS THAT CRIMPING CONSUMER SPENDING FURTHER WOULD BAR ECONOMIC RECOVERY STEELWORKERS OPENED THE TALKS WITH A REQUEST FOR A 7 PAY BOOST LAST YEAR UNIONS WON RAISES AVERAGING ALMOST 5 JAPANESE COMPANIES ARE UNUSUALLY PESSIMISTIC ABOUT INVESTMENT IN THE FISCAL YEAR STARTING APRIL 1 WHILE CONSUMER SENTIMENT HAS ERODED FURTHER DEFYING GOVERNMENT PREDICTIONS THE ECONOMIC PLANNING AGENCY'S QUARTERLY SURVEY OF MORE THAN 4000 COMPANIES CONDUCTED DEC 1 FOUND THAT FIRMS PLANNED TO PARE CAPITAL SPENDING 41 UP FROM 32 IN THE PREVIOUS QUARTER AND ADDING TO A SPUTTERING SPENDING ENGINE AS UNEMPLOYMENT WORSENED CONSUMER SENTIMENT IN THE QUARTER ENDED DEC 31 DETERIORATED TO ITS LOWEST LEVEL IN 11 YEARS AND EXTENDED THE STRING OF QUARTERTOQUARTER DECLINES TO THREE FOREIGNINVESTMENT COMMITMENTS IN SINGAPORE'S MANUFACTURING SECTOR LAST YEAR JUMPED 13 TO 279 BILLION SINGAPORE DOLLARS US169 BILLION FROM A YEAR EARLIER THIS ALLAYED FEARS THAT RISING COSTS WERE DIMMING THE REPUBLIC'S GLOBAL APPEAL AS A PRODUCTION CENTER AS REGIONAL RIVALS OFFER CHEAPER LAND AND LABOR COMMITMENTS FROM THE US SINGAPORE'S LARGEST INVESTOR AND MOST IMPORTANT TRADING PARTNER SOARED 24 TO S12 BILLION ARGENTINA WILL PRIVATIZE EZEIZA INTERNATIONAL AIRPORT'S ADMINISTRATION NOW RUN BY THE AIR FORCE THE SELLOFF THROUGH BIDS WILL INCLUDE LUCRATIVE BUSINESSES OF RAMP SERVICES DUTYFREE SHOPS AND WAREHOUSES FOR IMPORTS SINCE JULY 1989 THE GOVERNMENT HAS PRIVATIZED 33 FIRMS INCLUDING THE AIRLINE AND AWARDED MANAGEMENT CONTRACTS FOR 19 ENTERPRISES THE EUROPEAN COMMUNITY COMMISSION WHICH PREVIOUSLY ESTIMATED ECONOMIC GROWTH WOULD TOTAL JUST 08 THIS YEAR FORECAST A 18 EXPANSION NEXT YEAR A MEAGER SHOWING COMPARED WITH OUTLOOKS OF AT LEAST 25 FOR THE US AND JAPAN THE EC'S ANNUAL ECONOMIC REPORT STATES THAT THE TRADE BLOC'S ANEMIC GROWTH AND MANY MEMBERS' RESULTING BUDGETARY PROBLEMS HAVE SLOWED EFFORTS TO ACHIEVE ECONOMIC AND MONETARY INTEGRATION IT ALSO SEES THE EC UNEMPLOYMENT RATE WHICH STOOD AT 101 LAST YEAR CLIMBING TO 11 THIS YEAR AND 115 IN 1994 FEWER THAN HALF OF THE EC STATES LAST YEAR MET TARGETS TO LIMIT BUDGET DEFICITS TO 3 OF GROSS DOMESTIC PRODUCT AND RESTRICT DEBT TO 60 OF GDP BUT IN ONE BRIGHT SPOT EC INFLATION DECLINED TO 46 LAST YEAR FROM 535 AND COULD REMAIN STABLE THIS YEAR MEANWHILE THE SLOWDOWN IN THE GERMAN ECONOMY EUROPE'S BIGGEST WAS EVEN SHARPER THAN INITIALLY BELIEVED AS INDUSTRIAL PRODUCTION IN THE 11 WESTERN STATES WEAKENED SIGNIFICANTLY IN THE FOURTH QUARTER AND THE TREND SHOWED NO SIGN OF ABATING THE CZECH PARLIAMENT VOTED TO SPLIT THE CZECHOSLOVAK CROWN INTO CZECH AND SLOVAK CURRENCIES SWAPS FOR NEW CURRENCIES OF THE INDEPENDENT REPUBLICS WHICH DISSOLVED THEIR UNION JAN 1 COULD START TOMORROW CHINA SAID IT WOULD ACCEPT FOREIGN BIDDERS FOR CONSTRUCTION OF A 10 BILLION DAM AND HYDROELECTRIC PLANT ON THE YANGTZE RIVER THE LONGDISPUTED THREE GORGES PROJECT AT A STRIKINGLY SCENIC SITE AT SANDOUPING COULD TAKE 18 YEARS TO COMPLETE 9302030068 930203 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BO TH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LE SS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9302030067 930203 WHO'S NEWS FURLAUD IS LIKELY TO PLAY PIVOTAL ROLE IN SHAPING AMERICAN EXPRESS STRATEGY BY PETER PAE AND MICHAEL WALDHOLZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK RICHARD M FURLAUD'S NEW POST AS CHAIRMAN OF AMERICAN EXPRESS CO HAS BEEN DESCRIBED AS NONEXECUTIVE BUT HE IS LIKELY TO PLAY A MORE PIVOTAL ROLE THAN THE TITLE SUGGESTS WHILE HARVEY GOLUB THE NEW CHIEF EXECUTIVE OFFICER WILL BE RESPONSIBLE FOR REVAMPING THE FINANCIALSERVICES GIANT MR FURLAUD WILL HAVE A MAJOR INFLUENCE IN DEFINING THE LONGERTERM GOALS MR FURLAUD WHO WAS CHOSEN ON MONDAY TO SUCCEED JAMES ROBINSON III AS CHAIRMAN HASN'T YET SPELLED OUT HIS VISION FOR THE COMPANY BUT ONE INDICATION THAT HE PLANS TO TAKE AN ACTIVE ROLE CAME IN AN INTERVIEW YESTERDAY WHEN HE SAID THAT HE HAD SOME VIEWS ON THE SUBJECT OF AMERICAN EXPRESS'S FUTURE AND THAT HE WOULD SHARE THE IDEAS WITH HARVEY COLLEAGUES SAY THEY BELIEVE THE 68YEAROLD MR FURLAUD IS EXCITED ABOUT THE PROSPECTS OF RESHAPING AMERICAN EXPRESS THEY NOTE THAT ALTHOUGH HE OFTEN APPEARS SHY AND RETICENT IN PUBLIC MR FURLAUD IS KNOWN AS A FORCEFUL AND BRILLIANT STRATEGIST AS CHAIRMAN OF SQUIBB CORP HE TURNED A SLEEPY PHARMACEUTICAL COMPANY INTO A CUTTINGEDGE INTERNATIONAL POWERHOUSE THE STAMP HE LEFT ON THE COMPANY WAS TO GET IT FOCUSED SAID RONALD NORDMANN MANAGING DIRECTOR AT PAINEWEBBER WHO FOLLOWS THE HEALTH CARE INDUSTRY THAT WAS HIS CROWNING ACHIEVEMENT MR FURLAUD MERGED SQUIBB INTO LONGTIME RIVAL BRISTOLMYERS CO IN 1989 CREATING WHAT WAS THEN THE SECONDLARGEST PHARMACEUTICAL COMPANY IN THE WORLD WITH A RESUME LIKE THAT IT'S HARD TO SEE HIM NOT TAKE A MORE ACTIVE ROLE AT AMERICAN EXPRESS SAID JOHN KEEFE A NEW YORKBASED INDEPENDENT ANALYST LARGE SHAREHOLDERS AND ANALYSTS SAY THEY HAVE BEEN WAITING FOR A MORE DEFINED STRATEGY FOR AMERICAN EXPRESS THE COMPANY'S MISSION HAS BECOME A BIT MUDDLED SAID MICHAEL BLUMSTEIN ANALYST WITH MORGAN STANLEY THE MISSION NEEDS TO BE MADE CLEAR MAYBE SOMEONE OF HIS STATURE CAN DO THAT THE APPOINTMENT OF MR FURLAUD PRONOUNCED FURLOW SEEMS TO BE GOING OVER WELL SO FAR WITH SHAREHOLDERS YESTERDAY THE STOCK INCHED UP 125 CENTS TO 2475 A SHARE AFTER RISING MORE THAN 1375 ON MONDAY WHEN HIS APPOINTMENT WAS ANNOUNCED THE BOARD ELECTED MR FURLAUD CHAIRMAN AFTER MR ROBINSON ANNOUNCED OVER THE WEEKEND THAT HE WOULD STEP DOWN DESPITE THE BOARD'S RECENT DECISION TO KEEP HIM AS CHAIRMAN WHEN THE BOARD DECIDED TO RETAIN MR ROBINSON AN ANALYST FOR ONE OF AMERICAN EXPRESS'S MAJOR SHAREHOLDERS SAID LIKE OTHERS WE WERE APPALLED AT THE BOARD'S SHENANIGANS WE WERE CONTEMPLATING WHETHER TO HOLD ON TO THE STOCK WITH THE NAMING OF MR FURLAUD THE ANALYST SAID IT'S FAIR TO GIVE THIS TEAM SOME TIME TO SEE WHICH WAY THEY WANT TO GO MR FURLAUD'S BACKGROUND AND KNOWN CAPABILITIES HE ADDED SEEM IDEAL FOR HELPING THE COMPANY SET OVERALL PARAMETERS OF BUSINESS STRATEGY IN AN INTERVIEW YESTERDAY MR FURLAUD DREW SIMILARITIES BETWEEN THE STRATEGIC DIRECTION THAT SQUIBB TOOK UNDER HIS LEADERSHIP AND THE PLANS BEING IMPLEMENTED AT THE TRAVEL RELATED SERVICES UNIT BY MR GOLUB WHEN MR FURLAUD TOOK OVER SQUIBB IN 1964 IT WAS A BACKWATER BUSINESS WITH SALES MOSTLY OF OUTDATED ANTIBIOTICS AND VITAMINS BUT EARLIER THAN MOST IN THE DRUG BUSINESS HE BET HEAVILY ON INVESTING IN CUTTINGEDGE RESEARCH TURNING SQUIBB'S RESEARCH AND DEVELOPMENT OPERATION INTO A SMALL BUT EFFICIENT BUSINESS IN ORDER TO KEEP PUMPING OUT PROFITS HOWEVER SQUIBB ACQUIRED A NUMBER OF NONPHARMACEUTICAL BUSINESSES WHICH HE THEN JETTISONED IN QUICK SUCCESSION WHEN THE DRUG OPERATIONS FINALLY PRODUCED SOME VERY INNOVATIVE AND HUGESELLING HEART MEDICINES I DON'T THINK THAT IS IN ANY WAY INCONSISTENT TO WHAT HARVEY IS TRYING TO DO AT TRS MR FURLAUD SAID NOTING THAT MR GOLUB HAS A VERY CLEAR STRATEGY IN PLACE TO REFOCUS AMERICAN EXPRESS ON ITS BRAND FRANCHISE WHICH IS MAINLY THE TRAVEL RELATED SERVICES DIVISION THAT'S HIS NO 1 PRIORITY MR FURLAUD SAID ADDING THAT EVERYTHING WAS BEING DEVOTED TO THAT ENDEAVOR THIS IS THE FUTURE OF THE COMPANY 9302030066 930203 MARKETING & MEDIA NBC SUPERBOWL COVERAGE ATTRACTS RECORD 1334 MILLION TV VIEWERS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NBC'S COVERAGE OF SUPER BOWL XXVII WAS THE MOSTWATCHED PROGRAM IN THE HISTORY OF US TELEVISION DRAWING AN ESTIMATED 1334 MILLION VIEWERS THE NETWORK SAID THAT WAS GOOD NEWS FOR THE GENERAL ELECTRIC CO UNIT BUT IT ALSO STRENGTHENED THE HAND OF THE NATIONAL FOOTBALL LEAGUE AS THE NFL ASSESSES WHAT TO DO WITH AND HOW MUCH TO CHARGE FOR THE TELEVISION RIGHTS TO NEXT YEAR'S GAME WHICH HAVEN'T BEEN ASSIGNED ABC CBS AND NBC HAVE EACH HAD ONE SUPER BOWL IN THE FIRST THREE YEARS OF THE CURRENT FOURYEAR NFL CONTRACT BUT THE LEAGUE LEFT THE RIGHTS TO THE FOURTH SUPER BOWL GAME OPEN AND IT HASN'T YET TOLD THE NETWORKS WHETHER IT WILL SIMPLY ASSIGN THOSE RIGHTS TO A NETWORK OR MORE LIKELY PUT THE SINGLE GAME UP FOR BIDS BOTH SIDES ALREADY ARE ENGAGING IN A BIT OF PRENEGOTIATION POSTURING VAL PINCHBECK THE NFL'S VICE PRESIDENT OF BROADCASTING AND PRODUCTIONS SAID IT WAS PREMATURE TO TALK ABOUT PLANS FOR THE UNSOLD SUPER BOWL BUT NO MATTER WHAT WE DO THE MORE VIEWERSHIP AND HIGHER RATINGS THE BETTER IT IS FOR THE NFL THE THREE NETWORKS WHICH ARE EXPECTED TO RUN UP COMBINED LOSSES OF MORE THAN 200 MILLION ON NEXT SEASON'S NFL PACKAGE BEFORE THE NEXT SUPER BOWL IS FACTORED IN OPPOSE THE IDEA OF THE NFL RAKING IN STILL MORE MONEY I CAN'T SEE WHERE WE WOULD PUT OURSELVES IN A BIDDING WAR BECAUSE OF THE MAGNITUDE OF THE LOSSES NOW SAID NBC SPORTS PRESIDENT DICK EBERSOL IF THERE ISN'T A WAY TO MAKE SOME PROFIT ON FOOTBALL WE WON'T STAY IN IT NEXT YEAR'S GAME WILL AIR JUST BEFORE CBS'S COVERAGE OF THE WINTER OLYMPICS IN LILLEHAMMER NORWAY NETWORK EXECUTIVES NOTED PUTTING A SUBSTANTIAL AMOUNT OF SPORTS INVENTORY IN THE MARKETPLACE AT ONE TIME AND POTENTIALLY MAKING IT HARDER TO SELL THE SUPER BOWL DESPITE NETWORK POSTURING IN THE PAST HOWEVER TELEVISION RIGHTS HAVE CONTINUED TO FETCH RECORD FEES THIS YEAR'S SUPER BOWL RATINGS MAY ADD TO DEMAND FOR THE CHAMPIONSHIP GAME ACCORDING TO AC NIELSEN CO THE SUPER BOWL DREW 451 OF ALL HOMES WITH TELEVISION SETS AND DREW A 66 SHARE OF VIEWERS WHO WERE WATCHING TELEVISION THAT SURPASSED THE PREVIOUS RECORD OF 1271 MILLION VIEWERS WHO TUNED IN TO THE 1986 SUPER BOWL BETWEEN CHICAGO AND NEW ENGLAND BUT NBC'S MR EBERSOL SAID FOOTBALL WASN'T THE ONLY DRAW LAST SUNDAY THE RECORDHIGH NUMBERS WERE LARGELY DUE TO THE HALFTIME SHOW BY SINGER MICHAEL JACKSON THE BIGGEST SINGLE REASON FOR THE NUMBERS THIS YEAR IS BECAUSE WE WORKED FOR SO MANY MONTHS TO ATTRACT SOMEONE LIKE HIM HE SAID NOTING THAT WHEN NEWS CORP'S FOX NETWORK COUNTERPROGRAMMED LAST YEAR'S HALFTIME THE GAME LOST 20 OF ITS AUDIENCE FEW OTHER ENTERTAINERS HAVE HIS DRAW HE SAID PEOPLE HAVE ALWAYS WATCHED THE SUPER BOWL IN TREMENDOUS NUMBERS WHATEVER THE GAME AND WHATEVER THE ENTERTAINMENT FACTORS THE NFL'S MR PINCHBECK COUNTERED THE LEAGUE WILL LOOK AT A NUMBER OF TVRELATED ISSUES IN THE NEXT FEW WEEKS MR PINCHBECK SAID INCLUDING THE NETWORKS' DESIRE TO HAVE THE SEASON SHORTENED TO 17 WEEKS FROM 18 TO REDUCE THE AD INVENTORY AND THEREBY DRIVE UP PRICES THE NFL WILL ALSO REEXAMINE LAST YEAR'S FAILED PLAN TO EXTEND THE NETWORKS' CONTRACT FOR TWO YEARS IN RETURN FOR A REDUCTION IN RIGHTS FEES NETWORK EXECUTIVES ARE PUSHING FOR A RESOLUTION OF THE FOURTH SUPER BOWL BY MAY AT THE LATEST SO THE NETWORK THAT GETS THE GAME CAN BEGIN SELLING ADS AT THE SAME TIME IT SELLS AD TIME FOR THE FALL 1993 SCHEDULE 9302030065 930203 S&P MAY ACT ON AMERICAN EXPRESS DEBT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP PLACED ON REVIEW FOR POSSIBLE DOWNGRADE THE FINANCIAL CREDIT RATING OF AMERICAN EXPRESS CO AND ITS SUBSIDIARIES CITING PRESSURES ON THE CHARGECARD BUSINESS AND QUESTIONS ABOUT THE MANAGEMENT OF ITS SHEARSON LEHMAN BROTHERS INC DIVISION STANDARD & POOR'S MOVE FOLLOWS A WEEK OF TURMOIL THAT LED TO THE RESIGNATION OF CHAIRMAN JAMES D ROBINSON III AND APPOINTMENT OF HARVEY GOLUB AS CHIEF EXECUTIVE OFFICER AND BOARD MEMBER RICHARD FURLAUD AS CHAIRMAN THE RATING SERVICE'S MOVE HOWEVER WAS DRIVEN PRIMARILY BY CONCERNS ABOUT THE COMPANY'S CORE CHARGECARD FRANCHISE AND THE LACK OF A SUCCESSOR AT SHEARSON WHILE THE MOVE WOULD PUT THE PARENT'S RATINGS AT SINGLEAPLUS FROM DOUBLEAMINUS IN LINE WITH MOODY'S INVESTORS SERVICE INC IT WOULD PUSH SHEARSON LEHMAN BROTHERS HOLDING INC'S COMMERCIALPAPER RATING BELOW THAT OF MOODY'S TO SINGLEA2 ABOUT 40 BILLION OF DEBT WOULD BE AFFECTED THAT COULD RAISE THE BROKERAGE UNIT'S FINANCING COSTS AS WELL AS MAKING IT MORE DIFFICULT TO SHED THE DIVISION THE COMPANY SAID RECENTLY IT HOPES TO IMPROVE SHEARSON'S RATING TO BECOME A STANDALONE SINGLEARATED COMPANY WITHOUT AID FROM ITS PARENT CURRENTLY THE SINGLEA RATING REFLECTS IMPLICIT SUPPORT FROM AMERICAN EXPRESS THEY HAVE SOME WORK TO DO TO GET IT TO A SINGLEA STAND ALONE SAID RICHARD SCHMIDT AN S&P ANALYST IN RESPONSE AMERICAN EXPRESS SAID IN A STATEMENT WE ARE OBVIOUSLY DISAPPOINTED WITH THE DECISION BY STANDARD & POOR'S TO PUT US ON CREDITWATCH SINCE THE REVIEW WILL NOT BE COMPLETED UNTIL LATER THIS MONTH WE WILL UPDATE THEM ON THE PROGRESS AT OUR BUSINESS UNITS OUR STRATEGIES AND RECENT MANAGEMENT CHANGES A COMPANY SPOKESMAN ADDED WE DON'T BELIEVE IT WILL HAVE ANY MATERIAL FINANCIAL IMPACT OR AFFECT THE PLANS FOR SHEARSON THE RATING SERVICE PLACED THE DEBT RATINGS UNDER REVIEW MAINLY IN RESPONSE TO THE COMPANY'S DIFFICULTY IN IMPROVING THE FLAGSHIP TRAVEL RELATED SERVICES DIVISION WHICH HAS BEEN HURT BY DELINQUENCIES AND COMPETITION FROM CHEAPER CREDIT CARDS LAST YEAR TRS REPORTED NET INCOME OF 243 MILLION DOWN 39 THE UNIT HAS EMBARKED ON A NEW STRATEGY TO PERSUADE CARDHOLDERS TO USE THE CARD MORE FREQUENTLY WHILE PROMISING TO SLASH COSTS BY 1 BILLION S&P ALSO CAUTIONED THAT THERE WILL BE FEWER NONCORE ASSETS AVAILABLE FOR SALE IN THE PAST SUCH SALES HAVE HELPED OFFSET WEAKNESS IN OTHER AREAS ANOTHER CONCERN OF S&P IS THE LACK OF A CLEAR MANAGEMENT SUCCESSION PLAN AT SHEARSON LAST WEEK MR ROBINSON WAS NAMED HEAD OF SHEARSON DISPLACING HOWARD CLARK JR AS SHEARSON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT WHEN MR ROBINSON RESIGNED NO ONE WAS NAMED TO FILL THOSE POSITIONS S&P ALSO IS CONCERNED ABOUT MORALE AND THE EFFECTS OF EXPECTED COSTCUTTING AT THE NATION'S SECONDLARGEST BROKERAGE FIRM THERE IS SOME UNCERTAINTY AS TO HOW THAT'S GOING TO PAN OUT SAID MR SCHMIDT IF THE CREDIT RATINGS ARE LOWERED FINANCING COSTS COULD RISE BUT THE EFFECT IS UNCLEAR THE BIGGEST IMPACT PROBABLY WOULD BE AT SHEARSON WHICH HAS 11 BILLION IN SHORTTERM DEBT OUTSTANDING SHEARSON BORROWS AT TWO DIFFERENT COMPANY LEVELS IN THE COMMERCIAL PAPER MARKET THE PARENT SHEARSON LEHMAN BROTHERS HOLDING AS WELL AS ITS SHEARSON LEHMAN BROTHERS SUBSIDIARY ANY DOWNGRADE WOULD LOWER THE SINGLEA1 RATINGS OF THE HOLDING COMPANY BUT NOT THE SUBSIDIARY'S A1 RATING AMERICAN EXPRESS DOESN'T BREAK OUT THE LEVEL OF FINANCING AT EACH UNIT 9302030063 930203 TRAVEL AVIS OFFERS RATE FOR 3 MONTHS' UNLIMITED USE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AVIS INC SEEKING AN EDGE IN ITS BATTLE FOR BUSINESS CUSTOMERS INTRODUCED AN INNOVATIVE CAR RENTAL PROGRAM DESIGNED FOR TRAVELERS WHO OFTEN HOPSCOTCH ACROSS THE COUNTRY THE INITIATIVE MAY GIVE THE NATION'S NO 2 CAR RENTAL COMPANY A MARKETING ADVANTAGE IN AN INDUSTRY FOUGHT PRIMARILY ON PRICING BUT EXPERTS SAID THE PROGRAM WOULD PROBABLY APPEAL TO A NARROWER GROUP THAN AVIS HOPES UNDER THE PROGRAM CUSTOMERS CAN PAY A THREEMONTH RATE FOR THE RIGHT TO RENT A CAR AS MANY TIMES AS THEY WANT IN THAT PERIOD ONLY ONE CAR AT A TIME AT ANY AVIS LOCATION IN THE US FOR A MIDSIZE CAR THE CHARGE WILL BE ABOUT 900 A MONTH OR 2700 TOTAL FOR UNLIMITED MILEAGE OTHER CHARGES INCLUDING STATE AND LOCAL TAXES OPTIONAL INSURANCE COVERAGE AND REFUELING ARE ADDITIONAL THE PROGRAM CALLED ANYWHERE RENTAL IS DESIGNED TO MEET COMPLAINTS FROM TRAVELERS WHO VISIT SEVERAL CITIES A DAY RENT CARS FOR A COUPLE OF HOURS BUT MUST PAY FULLDAY CHARGES FOR EACH RENTAL THE PROGRAM IS NOW AVAILABLE ONLY TO CUSTOMERS WHO HAVE CORPORATE ACCOUNTS WITH AVIS BUT THE GARDEN CITY NY COMPANY SAYS IT WILL BE AVAILABLE TO EVERYONE BY THE MIDDLE OF THE YEAR LIKE THE REST OF THE INDUSTRY AVIS TRADITIONALLY OFFERS DAILY WEEKLY AND MONTHY RATES UNDER ITS DAILY RATES A MIDSIZE CAR SUCH AS A BUICK SKYLARK COSTS ABOUT 35 TO 40 A DAY THE SAME CAR UNDER CONVENTIONAL MONTHLY RATES FOR ONE LOCATION COSTS 750 TO 800 THE 900AMONTH ANYWHERE RENTAL CHARGE MAY NOT SEEM LIKE A BARGAIN IN COMPARISON BUT AVIS BELIEVES CUSTOMERS WILL USE THE PROGRAM TO CUT OTHER TRANSPORTATION COSTS FOR EXAMPLE RENTERS CAN USE AVIS CARS INSTEAD OF TAXI CABS TO DRIVE FROM THEIR OFFICE TO THE AIRPORT AIRPORT PARKING FEES ON PERSONAL CARS CAN ALSO BE ELIMINATED BY USING RENTALS IN FOCUS GROUPS THE PEOPLE WHO LOVED THE IDEA WERE THOSE WHO TRAVELED FREQUENTLY AND WANTED TO HAVE THE OPPORTUNITY TO HAVE ANOTHER CAR AT HOME SAID ROBERT CARDILLO AVIS'S VICE PRESIDENT OF SALES AND MARKETING UNDER THE PROGRAM CUSTOMERS ARE GUARANTEED THAT A CAR WILL BE AVAILABLE IF ONE IS RESERVED IN ADVANCE EVEN IF THE LOCATION IS SOLD OUT WHEN THE CALL IS MADE AVIS SAYS THE GUARANTEE IS UNRELATED TO REPORTS THAT SOME CITIES ARE EXPERIENCING OCCASIONAL RENTAL CAR SHORTAGES AMONG ALL RENTAL COMPANIES MANY TRAVEL AGENTS AND CORPORATE TRAVEL MANAGERS LIKED THE FLEXIBILITY IN AVIS'S NEW PROGRAM BUT SAID THE COST WAS HEFTY MOREOVER COMPANIES THAT ALREADY HAVE CORPORATE ACCOUNTS WITH AVIS MAY FIND THAT ADDING THE ANYWHERE RENTAL PROGRAM CREATES ADMINISTRATIVE OR ACCOUNTING PROBLEMS ON THE SURFACE IT SOUNDS LIKE A VERY INNOVATIVE APPROACH BUT I THINK THIS WOULD APPEAL TO A VERY NARROW MARKET SAID DAVID PERELMAN PRESIDENT OF DMS TRAVEL INC A TRAVEL AGENCY IN NEW YORK AMONG OTHER CONCERNS MR PERELMAN DOUBTS BUSINESS TRAVELERS WILL REPLACE AIRPORT TAXI SERVICE WITH A RENTAL CAR NO MATTER WHAT THE POSSIBLE SAVING SEVERAL AVIS COMPETITORS INCLUDING HERTZ CORP AND BUDGET RENT A CAR CORP SAID THEY WERE STUDYING THE INITIATIVE NATIONAL CAR RENTAL SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP SAID IT CONSIDERED A SIMILAR PLAN 18 MONTHS AGO BUT REJECTED THE IDEA BECAUSE IT DIDN'T BELIEVE THE MARKET WAS BIG ENOUGH MR CARDILLO OF AVIS SAYS IT WON'T TAKE LONG TO SEE WHO'S RIGHT WE'LL KNOW IN 90 DAYS IF IT WORKS HE SAYS 9302030062 930203 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 ARIZONA PUBLIC SERVICE CO 150 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 1 2025 PRICED AS 8 AT 9875 TO YIELD 811 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 087 POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ARIZONA PUBLIC SERVICE IS A UNIT OF PINNACLE WEST CAPITAL CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF MEDIUMTERM NOTES DUE FEB 12 1998 PRICED AT PAR TO YIELD 574 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 014 POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS FLORIDA POWER CORP 80 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 1 2008 WON IN COMPETITIVE BIDDING BY JP MORGAN SECURITIES INC THE BONDS WILL BE REOFFERED AS 6 7/8 AT 98854 TO YIELD 7 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 058 POINT ABOVE THE TREASURY 10YEAR NOTE JP MORGAN'S BID RESULTED IN A 7029 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P FLORIDA POWER CORP IS A UNIT OF FLORIDA PROGRESS CORP KIMBERLYCLARK CORP 200 MILLION OF DEBENTURES DUE FEB 1 2023 PRICED AS 7 7/8 AT 99825 TO YIELD 789 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 065 POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MEAD CORP 150 MILLION OF DEBENTURES DUE FEB 1 2023 PRICED AS 8 1/8 AT 9923 TO YIELD 8194 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 095 POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTHWESTERN ELECTRIC POWER CO 55 MILLION OF 6 5/8 FIRST MORTGAGE BONDS DUE FEB 1 2003 OFFERED AT 98957 TO YIELD 677 THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO AND MORGAN STANLEY & CO SOUTHWESTERN IS A UNIT OF CENTRAL & SOUTH WEST CORP AUSTIN TEXAS 7141 MILLION OF PUBLIC IMPROVEMENT REFUNDING BONDS PRICED BY A MERRILL LYNCH CO GROUP THE BONDS HAVE BEEN PRICED TO YIELD FROM 250 IN 1993 TO 600 IN 2009 THE BONDS ARE RATED DOUBLEA BY S&P A SINGLEA1 RATING FROM MOODY'S AND A SINGLEA RATING FROM FITCH INVESTORS SERVICE INC ARE EXPECTED NORTHSIDE TEXAS INDEPENDENT SCHOOL DISTRICT 861 MILLION OF REFUNDING GENERAL OBLIGATION BONDS PRICED BY A PRUDENTIAL SECURITIES CORP GROUP THE BONDS HAVE BEEN PRICED TO YIELD FROM 320 IN 1994 TO 580 IN 2007 THE CAPITAL APPRECIATION BONDS ARE PRICED TO YIELD 580 IN 2004 590 IN 2005 AND 600 IN 2006 THE BONDS ARE GUARANTEED BY THE TEXAS PERMANENT SCHOOL FUND AND ARE RATED TRIPLEA BY MOODY'S AND S&P PORT OF SEATTLE 849 MILLION OF SERIES 1993 A AND B REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE 223 MILLION SERIES A BONDS HAVE BEEN PRICED TO YIELD FROM 300 IN 1994 TO TO 500 IN 2000 THE 626 MILLION SERIES BONDS YIELD FROM 260 IN 1993 TO 510 IN 2001 AMBAC INDEMNITY CORP IS INSURING SERIES A BONDS DUE IN 19972000 AND SERIES B BONDS DUE IN 19972001 ALL THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE BALANCE OF THE SERIES A AND B BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P ALL BONDS ARE NONCALLABLE SALT RIVER ARIZONA PROJECT AGRICULTURAL IMPROVEMENT AND POWER DISTRICT 2816 MILLION OF SERIES 1993 A REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE BONDS HAVE BEEN PRICED TO YIELD FROM 260 IN 1994 TO 615 IN 2019 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P SOUTH CAROLINA 110 MILLION OF CAPITAL IMPROVEMENT GENERAL OBLIGATION BONDS WON BY A PRUDENTIAL SECURITIES CORP GROUP WITH A BID SETTING THE NET INTEREST COST AT ABOUT 526 THE SERIAL BONDS WERE PRICED TO YIELD FROM 240 IN 1994 TO 570 IN 2009 THE STATE'S BONDS HAVE A STANDALONE TRIPLEA RATING BY MOODY'S INVESTORS SERVICE INC AND A DOUBLEAPLUS RATING FROM S&P S&P DOWNGRADED THE STATE'S BONDS LAST FRIDAY NORAND CORP INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 1550 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE HOLLYWOOD PARK INC 25 MILLION DEPOSITARY SHARES EACH REPRESENTING 1/100TH OF A SHARE OF CONVERTIBLE PREFERRED STOCK THE DEPOSITARY SHARES ARE PRICED AT 10 A SHARE PAY DIVIDENDS OF 7 ANNUALLY AND ARE CONVERTIBLE INTO COMMON SHARES PAINEWEBBER INC IS THE UNDERWRITER FOR THE OFFERING NINE WEST GROUP INC EIGHT MILLION COMMON SHARES PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HEALTH MANAGEMENT ASSOCIATES INC THREE MILLION CLASS A COMMON SHARES PRICED AT 2625 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHRYSLER CORP 46 MILLION COMMON SHARES PRICED AT 3875 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP POWERSOFT CORP INITIAL OFFERING OF 1865000 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 486 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993G10 IS BACKED BY 8 1/2 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2875 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 199325 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 820 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS WORLD OMNI FINANCIAL CORP 1221 MILLION OF SENIOR AUTOMOBILE LOAN ASSETBACKED SECURITIES PRICED AS 495 AT 99 31/32 TO YIELD 5021 THROUGH FIRST BOSTON CORP THE SENIOR CERTIFICATES REPRESENTING 89 OF THE OFFERING ARE RATED TRIPLEA BY MOODY'S AND S&P BASED ON CREDIT SUPPORT PROVIDED BY THE REMAINING 11 IN SUBORDINATE CERTIFICATES THE SUBORDINATE CERTIFICATES WERE NOT OFFERED PUBLICLY ASFINAG AUSTRIA 300 MILLION CANADIAN DOLLARS OF 8 1/2 EUROBONDS DUE MARCH 3 2003 AT AN ISSUE PRICE OF 101618 VIA SWISS BANK CORP REOFFERED AT 99943 TO YIELD 851 ANNUALLY A SPREAD OF 040 POINT ABOVE THE COMPARABLE CANADIAN GOVERNMENT ISSUE GUARANTEED BY THE REPUBLIC OF AUSTRIA FEES 2 EUROPEAN INVESTMENT BANK SUPRANATIONAL 10 BILLION PORTUGUESE ESCUDOS OF 12 1/2 EUROBONDS DUE FEB 24 1998 AT AN ISSUE PRICE OF 10075 TO YIELD 1275 ANNUALLY AFTER DEDUCTING FEES VIA BANCO ESPIRITO SANTO E COMMERCIAL DE LISBOA FEES 1 5/8 GODO STEEL LTD JAPAN 100 MILLION OF 2 3/8 EUROBONDS DUE FEB 19 1997 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM MARCH 3 1993 TO FEB 12 1997 TO BUY COMPANY SHARES AT AN EXPECTED PREMIUM OF 2 1/2 ABOVE THE CLOSING SHARE PRICE ON FEB 10 1993 WHEN FINAL TERMS ARE FIXED FEES 2 1/4 INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION OF EUROBONDS DUE FEB 18 2003 WITH A COUPON OF 6 5/8 AT 99395 VIA CREDIT SUISSE FIRST BOSTON LTD YIELD 671 A YIELD MARGIN OF 018 POINT ABOVE THE COMPARABLE US TREASURY FEES 0325 MITSUI TOATSU CHEMICALS INC JAPAN 20 BILLION YEN OF 53 EUROBONDS DUE MAY 24 2000 AT AN ISSUE PRICE OF 101475 VIA NOMURA INTERNATIONAL REOFFERED AT 9995 FEES 1 7/8 SEPARATELY MITSUI TOATSU CHEMICALS INC IS OFFERING 10 BILLION YEN OF 43 EUROBONDS DUE MAY 23 1997 AT AN ISSUE PRICE OF 101525 VIA YAMAICHI INTERNATIONAL REOFFERED AT 10020 PUT OPTION AT PAR ON MAY 24 1996 FEES 1 5/8 NEDERLANDSE WATERSCHAPSBANK NV NETHERLANDS 300 MILLION GUILDERS OF 7 1/8 EUROBONDS DUE MARCH 3 2003 AT ISSUE PRICE 100 3/4 VIA ABN AMRO BANK REOFFERED AT PAR TO YIELD 7 1/8 ANNUALLY A SPREAD OF 007 POINT ABOVE THE COMPARABLE GOVERNMENT ISSUE FEES 1 9302030061 930203 THE TROUBLE AHEAD BY ALAN REYNOLDS AFTER A BRIEF SPELL OF BOND MARKET NERVOUSNESS AROUND ELECTION TIME LONGTERM INTEREST RATES HAVE REMAINED SURPRISINGLY LOW DESPITE TWO QUARTERS OF ABOUT 35 ECONOMIC GROWTH THIS IS OBVIOUSLY GOOD NEWS FOR THE NEW ADMINISTRATION WHILE IT LASTS BUT IT IS UNLIKELY TO LAST VERY LONG IF ANY OF THE PROPOSED TAX AND SPENDING POLICIES ARE ENACTED THE MOST FASHIONABLE EXPLANATION FOR THE CALM BOND MARKET IS THAT GOOD ECONOMIC NEWS REDUCED THE NEED FOR FISCAL STIMULUS A MEANINGLESS EUPHEMISM FOR BIGGER BUDGET DEFICITS A TYPICAL NEWS STORY IN THIS PAPER AS IT HAPPENS THUS REPORTED THAT BOND INVESTORS BECAME MORE CONVINCED THAT NEW SIGNS OF ECONOMIC STRENGTH IN THE FOURTH QUARTER MEAN THAT ANY SPENDING PACKAGE WILL BE MODEST SUCH A SPENDING PACKAGE COULD ENLARGE THE DEFICIT AND SPARK HIGHER INFLATION BOTH OF WHICH WOULD REDUCE THE VALUE OF BONDS THAT STORY NEVER MADE MUCH SENSE DESPITE MANY VALIANT EFFORTS NOBODY HAS CONVINCINGLY DEMONSTRATED ANY CLEAR CONNECTION BETWEEN INTEREST RATES AND EVEN HUGE CHANGES IN BUDGET DEFICITS MUCH LESS THE MINOR ALTERATIONS THE CLINTON ADMINISTRATION MAY CONTEMPLATE IN THE LATE 1980S BRITAIN SWEDEN AND AUSTRALIA ALL RAN BUDGET SURPLUSES YET HAD MUCH HIGHER INTEREST RATES THAN THE US THE US HAS EXPERIENCED LARGE AND RISING BUDGET DEFICITS EVER SINCE THE INFAMOUS BUDGET CURE OF 1990 YET BOTH INFLATION AND INTEREST RATES FELL IT IS NONETHELESS NOT SURPRISING THAT EVERY WIGGLE IN INTEREST RATES IS ATTRIBUTED TO CHANGING HUNCHES ABOUT THE BUDGET DEFICIT OR EVEN ABOUT HOW IT IS FINANCED AFTER ALL EVERY PROBLEM REAL AND IMAGINARY HAS BEEN BLAMED ON THE DEFICIT IN THE PAST DECADE THE DEFICIT WAS SUPPOSED TO ABSORB SAVINGS AND ABORT THE RECOVERY IN 1983 THEN THE DEFICIT WAS SAID TO BE THE CAUSE OF OVERHEATING IN 1984 IN SUBSEQUENT YEARS THE DEFICIT WAS SAID TO BE THE CAUSE OF BOTH THE RISING DOLLAR AND THE FALLING DOLLAR THUS BEING BOTH DEFLATIONARY AND INFLATIONARY THE TRUTH IS THAT ECONOMISTS ARE NOT AT ALL SURE HOW TO PROPERLY MEASURE DEFICITS MUCH LESS WHAT THEIR EFFECTS ARE INDEED THE REPEATED FAILURE OF FORECASTS BASED ON THE BUDGET IS ONE THING THAT LED TO RENEWED STUDY OF THE MORE COMPLICATED MICROECONOMIC DETAILS OF PUBLIC FINANCE UNDER THE BANNER OF SUPPLYSIDE ECONOMICS AND IT IS IN THESE DETAILS WHERE THE CLINTON ECONOMIC PLANS WHATEVER THEIR OTHER MERITS LOOK TROUBLESOME FOR INTEREST RATES PRESIDENT CLINTON HAS PROPOSED AN INCREASE IN MARGINAL TAX RATES ON HIGHER INCOMES AND A TAX CREDIT FOR PURCHASES OF BUSINESS EQUIPMENT SUCH POLICIES HAVE A DIRECT IMPACT ON INTEREST RATES REGARDLESS OF THEIR EFFECTS ON THE DEFICIT THE EXPLANATION HAS TO DO WITH WHAT ECONOMISTS CALL INTERTEMPORAL SUBSTITUTION WHICH SIMPLY MEANS PEOPLE ARE CLEVER ENOUGH TO ADJUST THE TIMING OF THEIR ACTIVITIES TO MINIMIZE TAXES AND MAXIMIZE DEDUCTIONS AND TAX CREDITS IN THE VERY SHORT RUN THE INTERTEMPORAL EFFECTS OF EXPECTED TAX CHANGES HAVE HELPED TO KEEP INTEREST RATES DOWN UNFORTUNATELY THE SAME INCENTIVES MUST HAVE THE OPPOSITE EFFECT IN THE NEAR FUTURE FIRST EVERY ACCOUNTING FIRM AND FINANCIAL PUBLICATION TOLD AFFLUENT COUPLES TO GET THEIR BONUS CHECKS COMMISSIONS AND STOCK OPTIONS PAID IN DECEMBER 1992 TO AVOID POSSIBLY HIGHER TAX RATES IN 1993 MOST OF THESE LUMPSUM PAYMENTS WERE PARKED IN BANKS AND MUTUAL FUNDS HOLDING INTEREST RATES DOWN IF AND WHEN IT BECOMES CLEAR THAT TAX RATES ARE REALLY GOING UP THOUGH THERE WILL BE AN IRRESISTIBLE INCENTIVE TO MOVE FUNDS INTO TAXFREE MUNICIPAL BONDS TAXABLE SECURITIES INCLUDING MORTGAGES WILL THEN HAVE TO OFFER HIGHER YIELDS TO REMAIN COMPETITIVE IF TAX RATES ON INTEREST INCOME GO FROM 31 TO 36 FOR EXAMPLE A 74 BOND HAS TO RISE TO 8 TO YIELD THE SAME AFTERTAX RETURN SECOND THE EXPECTATION OF AN INVESTMENT TAX CREDIT ITC IN 1993 PROVIDED AN INCENTIVE TO POSTPONE PURCHASES OF BUSINESS EQUIPMENT UNTIL THE NEW TAX RULES BECOME CLEAR TO ENSURE THAT SUCH PURCHASES WILL BE ELIGIBLE FOR THE TAX BREAK TREASURY SECRETARY LLOYD BENTSEN'S RECENT COMMENTS ABOUT RAISING ENERGY TAXES AND ELIMINATING CORPORATE DEDUCTIONS SHOULD LIKEWISE PUT CAPITAL SPENDING PLANS ON HOLD TEMPORARILY DEPRESSING INTEREST RATES AS STRONG AS DECEMBER CAPITAL GOODS ORDERS WERE THEY WILL BE EVEN STRONGER IF THE ITC BECOMES A SURE THING MOREOVER PAYMENT FOR SUCH ORDERS COMES LATER AND THAT IS WHEN THE SCRAMBLE FOR CREDIT WILL OCCUR IF ENACTED THOUGH THE ITC WILL CAUSE INVESTMENTS THAT WOULD HAVE BEEN MADE IN LATER YEARS TO BE BROUGHT FORWARD INTO 1993 BECAUSE THIS SUBSIDY HAS ALWAYS BEEN TEMPORARY SUCH BUNCHING OF EQUIPMENT SPENDING INTO 1993 MUST INCREASE CORPORATE DEMAND FOR CREDIT AND REDUCE ITS SENSITIVITY TO INTEREST RATES INTEREST RATES CAN THEREFORE GO UP WITHOUT CURBING BUSINESS BORROWING THOUGH NOT WITHOUT CAUSING DAMAGE TO INTERESTSENSITIVE CONSTRUCTION INVENTORIES AND CONSUMER DURABLE GOODS PRICES OF TAXFAVORED EQUIPMENT WILL ALSO RISE WITH THE ADDED DEMAND FURTHER DILUTING THE INTENDED EFFECT IF CONGRESS INSTEAD REDUCED OR INDEXED THE CAPITAL GAINS TAX THE EFFECTS WOULD BE QUITE DIFFERENT UNLIKE THE ITC A LOWER TAX RATE ON CAPITAL GAINS WOULD HELP KEEP BOND YIELDS LOW BECAUSE PART OF THE INCENTIVE FOR HOLDING BONDS OR STOCKS IS THE HOPE OF CAPITAL GAIN WHAT ABOUT PRESIDENT CLINTON'S PROPOSED 50 BILLION ANNUAL INCREASE IN PUBLIC WORKS SPENDING AS HARVARD ECONOMIST ROBERT BARRO NOTES IN HIS MACROECONOMICS TEXT THERE IS NO CREDIBLE EVIDENCE THAT BUDGET DEFICITS PER SE RAISE INTEREST RATES BUT SOME STUDIES DO FIND THAT INCREASED GOVERNMENT PURCHASES AS OPPOSED TO TRANSFER PAYMENTS RAISE INTEREST RATES CAPITAL WHICH IS NOT UNLIMITED WOULD THUS BE DIVERTED FROM USES DETERMINED BY MARKETS TO USES DETERMINED BY POLITICS ONE RATIONING MECHANISM BY WHICH THIS DUBIOUS REALLOCATION OF CAPITAL IS ACCOMPLISHED IS HIGHER INTEREST RATES A MORE SUBTLE RISK OF HIGHER INTEREST RATES COULD ARISE FROM HIDDEN TAXES IN THE CLINTON AGENDA SUCH AS MANDATING THAT BUSINESSES DEVOTE A PERCENTAGE OF PAYROLL TO HEALTH BENEFITS AND TRAINING MANDATED INCREASES IN LABOR COSTS HAVE THE SAME EFFECT AS AN INCREASE IN PAYROLL TAXESREAL WAGES OR EMPLOYMENT OR BOTH HAVE TO BE LOWER LIMITING ECONOMIC GROWTH THE INVESTMENT TAX CREDIT WOULD FURTHER WEAKEN EMPLOYMENT GROWTH SINCE IT 1 PROVIDES AN INCENTIVE TO SUBSTITUTE MACHINES FOR WORKERS AND 2 DIVERTS CAPITAL FROM NEW ENTERPRISES WHICH CAN'T USE THE CREDIT BECAUSE THEY ARE NOT IMMEDIATELY PROFITABLE AND LABORINTENSIVE INDUSTRIES THERE IS NO TAX CREDIT FOR REAL ESTATE OR FOR RETAIL INVENTORIES SINCE THE RESULTING WEAK GROWTH OF JOBS AND WAGES WILL CONTRADICT PRESIDENT CLINTON'S CAMPAIGN PROMISE THE ADMINISTRATION MAY SOON BECOME IMPATIENT WITH THE ABSENCE OF PROGRESS IN LABOR MARKETS THIS IS WHERE THE RISK OF INFLATION COMES IN SINCE IT COULD BECOME TEMPTING TO TRY A MONETARY QUICK FIXTALKING THE DOLLAR DOWN OR APPOINTING INFLATIONISTS TO THE FEDERAL RESERVE BOARD SOME MEMBERS OF THE CLINTON TEAM LEAN TOWARD INFLATIONARY BANANAREPUBLIC MONETARY POLICIES ANYWAY LAURA TYSON THE NEW HEAD OF THE COUNCIL OF ECONOMIC ADVISERS HAS WRITTEN THAT AT THE FIRST SIGN THE CREDIT CRUNCH IS WORSENING THE FED SHOULD PURCHASE GOVERNMENT BONDS TO KEEP INTEREST RATES LOW PRESIDENT CLINTON HAS STATED THAT HE WOULD NOT LIKE TO SEE THE FED RAISE INTEREST RATES UNLESS THERE WAS CLEAR EVIDENCE OF ACCELERATING INFLATION BUT POLITICIANS ARE THE LAST TO SEE SUCH EVIDENCE WHILE BOND AND COMMODITY TRADERS ARE THE FIRST THE INFLATION RISK IS NOT IMMINENT ANY MORE THAN IT WAS WHEN PRESIDENT CARTER TOOK OFFICE IN 1977 BECAUSE THE RECESSION IN JAPAN AND EUROPE IS HELPING TO HOLD DOWN WORLD INFLATION AND INTEREST RATES BUT THIS IS A TEMPORARY REPRIEVE FOREIGN RECESSIONS WILL NOT LAST FOREVER IF THE WHITE HOUSE LEANS ON THE FED TO PAPER OVER TWO QUITE PREDICTABLE EFFECTS OF ITS OWN POLICIES HIGHER INTEREST RATES AND SLOWER JOB GROWTH THE LAST TWO YEARS OF THE CLINTON ADMINISTRATION COULD END UP LOOKING A LOT LIKE THE LAST TWO YEARS OF THE CARTER ADMINISTRATION THE KEYNESIAN POLICY MIX OF RISING TAX AND LABOR COSTS PLUS AN EASY MONEY POLICY ALWAYS ADDS UP TO STAGFLATION IF RECENT GOOD NEWS ON THE ECONOMY WERE TO RESULT IN DILUTING OR SCRAPPING THE PUBLIC WORKS SCHEMES OR THE INVESTMENT TAX CREDIT THAT WOULD BE DIRECTLY BENEFICIAL TO BONDS BECAUSE IT WOULD CONSTRAIN THE COMPETING CLAIMS OF BUSINESS AND GOVERNMENT ON REAL RESOURCES BAD NEWS ON THE DEFICIT IS ALREADY PROVIDING A HANDY EXCUSE FOR BACKING AWAY FROM THE NEBULOUS PROMISE OF MIDDLECLASS TAX RELIEF THIS COULD CURTAIL THE POLITICAL IMPULSE TO PLAY ROBIN HOOD WITH THE TAX CODE WITHOUT THE FACADE OF A MIDDLECLASS TAX CUT SOAKTHERICH POLICIES LOSE THEIR CONSTITUENCY ALL THAT REMAINS IS A PURELY PUNITIVE ENVY TAX ON EXTRAORDINARY EFFORT AND SUCCESS IF A COALITION OF ENLIGHTENED DEMOCRATIC AND REPUBLICAN CONGRESSMEN CAN BLOCK THE UNWISE INCREASE IN MARGINAL TAX RATES THAT WOULD NOT ONLY PRESERVE INCENTIVES FOR HIGHLY PRODUCTIVE PEOPLE BUT ALSO HELP KEEP INTEREST RATES DOWN MR REYNOLDS IS DIRECTOR OF ECONOMIC RESEARCH AT THE HUDSON INSTITUTE IN INDIANAPOLIS 9302030060 930203 PEOPLE PATTERNS THE ELDERLY BY ALAN L OTTEN RACIAL DIVERSITY AMONG THE COUNTRY'S AGED WILL INCREASE MARKEDLY IN COMING DECADES THE PROPORTION OF WHITE NONHISPANICS OVER THE AGE OF 65 WILL DECLINE STEADILY ACCORDING TO NEWLY REVISED CENSUS BUREAU PROJECTIONS WHILE THE SHARE OF ELDERLY HISPANICS AND ASIANS WILL GROW EVER LARGER THE CHANGES HAVE OBVIOUS IMPORT NOT ONLY FOR BUSINESSES BUT FOR GOVERNMENT PROGRAMS IN HEALTH HOUSING SOCIAL SERVICES AND OTHER AREAS WHITE NONHISPANICS WILL ACCOUNT FOR ONLY 77 OF THE 65ANDOVER POPULATION BY THE YEAR 2020 ACCORDING TO THE LATEST PROJECTIONS THAT WOULD BE A DROP OF 10 PERCENTAGE POINTS FROM 1990 THE HISPANIC SHARE WILL RISE TO 9 FROM 4 ELDERLY NONHISPANIC BLACKS WILL ALSO BE AT 9 ONLY A SLIGHT INCREASE FROM 8 IN 1990 BUT OLDER NONHISPANIC ASIANS AND PACIFIC ISLANDERS WILL JUMP TO 5 FROM 1 THE PROJECTIONS ASSUME CONTINUATION OF PRESENT BIRTH DEATH AND IMMIGRATION PATTERNS THE HISPANIC FIGURES INCLUDE LEGAL AND ILLEGAL RESIDENTS GOING FURTHER OUT IN TIME THE NEW RACIAL PICTURE BECOMES MORE PRONOUNCED BY 2050 WHITE NONHISPANICS WILL ACCOUNT FOR ONLY ABOUT 65 OF THE ELDERLY POPULATION THE CENSUS BUREAU SAYS WHILE HISPANICS WILL BE UP TO 15 NONHISPANIC ASIANS WILL ACCOUNT FOR 8 AND NONHISPANIC BLACKS FOR ABOUT 11 CENSUS SPECIALIST CYNTHIA TAEUBER EXPLAINS THAT A MAJOR REASON FOR THE SUBSTANTIAL INCREASE IN ELDERLY HISPANICS AND ASIANS IS THE FACT THAT YOUNGER HISPANICS AND ASIANS FIGURED SO PROMINENTLY IN THE HUGE IMMIGRANT INFLOW IN THE PAST THREE DECADES NOW THOSE YOUNG IMMIGRANTS ARE AGING PEOPLE OVER 65 ARE THE LEAST LIKELY AGE GROUP TO BE VICTIMS OF CRIME THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS ANALYZED VICTIMIZATION RATES THE NUMBER OF CRIME INCIDENTS PER 1000 PEOPLE IN A PARTICULAR AGE GROUP FOR THE YEARS 1987 THROUGH 1990 AND AVERAGED THE ANNUAL RESULTS FOR CRIMES OF VIOLENCE INCLUDING ROBBERY ASSAULT AND RAPE FOUR OUT OF EVERY 1000 PEOPLE 65 OR OLDER HAD BEEN VICTIMIZED COMPARED WITH RATES OF 85 FOR PEOPLE 50 TO 64 272 FOR THOSE 25 TO 49 AND 646 FOR THOSE 12 TO 25 VICTIMIZATION RATES FOR MURDER LARCENY BURGLARY AND OTHER CRIMES FOLLOWED THE SAME PATTERN LOWEST FOR THE OLD THEN RISING STEADILY TO THE YOUNGEST GROUP THE BUREAU NOTED THAT VICTIMIZATION RATES FOR THE ELDERLY GENERALLY FELL THROUGH THE '80S OTHER FINDINGS ELDERLY MEN AND WOMEN ARE PROPORTIONATELY MORE LIKELY THAN PEOPLE IN OTHER AGE GROUPS TO BE VICTIMIZED BY STRANGERS RATHER THAN PEOPLE THEY KNOW ELDERLY VICTIMS FAR MORE OFTEN REPORT THEIR EXPERIENCE TO THE POLICE AND ELDERLY MEN AND WOMEN IN THE LOWEST INCOME CATEGORIES ARE MORE LIKELY TO BE THE VICTIMS OF VIOLENT CRIMES AND LESS LIKELY TO EXPERIENCE THEFT THAN THOSE WITH HIGHER INCOMES RONET BACHMAN THE STATISTICIAN PREPARING THE BUREAU'S REPORT SUGGESTS THAT ONE REASON FOR THE LOWER VICTIMIZATION RATES AMONG THE ELDERLY IS THAT MANY OLD PEOPLE FEARING DANGER SIMPLY CHANGE THEIR LIFESTYLE TO AVOID CRIMETHREATENING SITUATIONS THEY DON'T GO OUT AT NIGHT FOR EXAMPLE OR THEY STAY OUT OF CERTAIN PARTS OF TOWN VISUALFIELD TESTING MAY EMERGE AS A NEW WAY TO SPOT RISKY OLDER DRIVERS WITH SUPPORT FROM THE FEDERAL NATIONAL INSTITUTE ON AGING PSYCHOLOGIST KARLENE BALL OF WESTERN KENTUCKY UNIVERSITY AND COLLEAGUES THERE AND AT THE UNIVERSITY OF ALABAMA IN BIRMINGHAM HAVE EVALUATED THE ROLE OF VISION ATTENTION CAPACITY AND COGNITIVE FUNCTION IN IDENTIFYING ACCIDENTPRONE OLDER DRIVERS THEIR CONCLUSION AGE ALONE OR SIMPLE EYE TESTS AREN'T THE BEST WAYS TO PINPOINT THESE RISKY MEN AND WOMEN THEY DEVELOPED A MACHINE TO TEST THE LIMITS ON WHAT THEY CALL A DRIVER'S USEFUL FIELD OF VIEW OR UFOV THE SPATIAL AREA WITHIN WHICH A DRIVER CAN SEE AND QUICKLY PROCESS INFORMATION FROM DIFFERENT SOURCES THEY LEARNED THAT AS PEOPLE AGE THEIR UFOV TENDS TO SHRINK AND MANY FIND IT INCREASINGLY DIFFICULT TO PROCESS DATA FROM MORE THAN A SIMPLE SITUATION AN OLDER DRIVER MAY SEE AN ONCOMING CAR PERFECTLY WELL BUT BE UNABLE TO HANDLE BOTH THE ONCOMING CAR AND ANOTHER CAR APPROACHING AN INTERSECTION FROM THE RIGHT THE RESEARCHERS TESTED CLOSE TO 300 DRIVERS AGE 55 AND OVER SOME WHO HAD NO ACCIDENTS IN THE PREVIOUS FIVE YEARS AND OTHERS WHO HAD ANYWHERE FROM ONE TO FOUR OR MORE INDIVIDUALS WITH A REDUCTION IN UFOV OF MORE THAN 40 FROM NORMAL TURNED OUT TO BE SIX TIMES MORE LIKELY TO HAVE BEEN INVOLVED IN CRASHES THAN THOSE WITH LITTLE OR NO UFOV REDUCTION DR BALL AND HER COLLEAGUES ALSO FOUND THAT TRAINING AND PERIODIC PRACTICE WITH COMPUTERCONTROLLED DRIVING SITUATIONS DISPLAYED ON LARGE SCREENS COULD SUBSTANTIALLY ENLARGE INDIVIDUALS' PROCESSING SPEED THUS EFFECTIVELY WIDENING THEIR UFOV SUICIDE IS ON THE MINDS OF A NUMBER OF ELDERLY A SURVEY REPORTS THE GALLUP ORGANIZATION IN COOPERATION WITH EMPIRE BLUE CROSS & BLUE SHIELD POLLED A LARGE NUMBER OF MEN AND WOMEN 60 OR OLDER MOSTLY LIVING INDEPENDENTLY AT HOME ABOUT 1 SAID THEY HAD THOUGHT OF COMMITTING SUICIDE IN THE PRECEDING SIX MONTHS AND 6 KNEW SOMEONE OVER 60 WHO HAD COMMITTED SUICIDE OR TRIED TO OF THOSE WHO HAD TRIED TO COMMIT SUICIDE ABOUT TWOTHIRDS SUCCEEDED LONELINESS WAS GIVEN BY ALMOST ONETHIRD OF THE RESPONDENTS AS THE MAIN REASON FOR THINKING OF SUICIDE OTHER REASONS FREQUENTLY CITED WERE FINANCIAL PROBLEMS ILL HEALTH AND DEPRESSION RESPONDENTS SAID FEWER THAN ONEFOURTH OF THOSE THEY KNEW WHO COMMITTED SUICIDE OR TRIED TO KILL THEMSELVES HAD TALKED ABOUT IT IN ADVANCE 9302030059 930203 SHAREHOLDERS SUE LESLIE FAY FOLLOWING DISCLOSURE OF ACCOUNTING INVESTIGATION BY LEE BERTON AND TERI AGINS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SHORTLY AFTER LESLIE FAY COS DISCLOSED THAT IT IS INVESTIGATING ALLEGED ACCOUNTING IRREGULARITIES SHAREHOLDERS OF THE TROUBLED APPAREL MAKER LATE MONDAY FILED SIX LAWSUITS AGAINST THE COMPANY AND ITS TOP OFFICERS AND DIRECTORS IN FEDERAL DISTRICT COURT HERE THE SUITS ALLEGE THAT THE DEFENDANTS MISLED INVESTORS ABOUT THE COMPANY'S FINANCIAL PROSPECTS IN ANNOUNCING THE INVESTIGATION LESLIE FAY SAID THE IRREGULARITIES WHEN CORRECTED COULD WIPE OUT ITS 1992 NET INCOME AND FORCE THE COMPANY TO RESTATE ITS 1991 EARNINGS TWO OF THE SUITS ALSO NAME BDO SEIDMAN LESLIE FAY'S OUTSIDE AUDITOR AS A DEFENDANT AND ALLEGE THAT SEIDMAN PERFORMED A RECKLESS AUDIT OF THE COMPANY'S 1991 FINANCIAL RESULTS THAT VIOLATED GENERALLY ACCEPTED AUDITING STANDARDS BDO SEIDMAN DENIES ANY WRONGDOING IN AN INTERVIEW HERMAN GORDON SENIOR VICE PRESIDENT GENERAL COUNSEL AND A DIRECTOR OF LESLIE FAY SAID THE COMPANY IS STILL INVESTIGATING ALLEGATIONS AGAINST DONALD KENIA CORPORATE CONTROLLER AND BELIEVES THAT MR KENIA AND FIVE TO 10 OTHER EMPLOYEES OF LESLIE FAY WERE INVOLVED IN MAKING FALSE ENTRIES IN THE COMPANY'S BOOKS THAT IMPROPERLY INFLATED INVENTORIES AND PROFITS FOR MORE THAN A YEAR ACCORDING TO MR GORDON MR KENIA WANTED TO BE A HERO AND GENERATE PROFITS MR KENIA COULDN'T BE REACHED FOR COMMENT JOHN POMERANTZ LESLIE FAY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS SAID THAT NEITHER HE NOR PAUL POLISHAN LESLIE FAY'S CHIEF FINANCIAL OFFICER KNEW ABOUT THE ALLEGED IMPROPRIETIES YESTERDAY MR POMERANTZ SAID HE HADN'T BEEN SERVED WITH ANY COURT PAPERS AND HE DECLINED TO COMMENT ON THE LAWSUITS SINCE THE ACCOUNTING PROBLEM WAS DISCLOSED THE PRICE OF THE COMPANY'S STOCK HAS PLUNGED 43 YESTERDAY IT FELL 50 CENTS A SHARE TO 6875 IN HEAVY NEW YORK STOCK EXCHANGE TRADING OF NEARLY TWO MILLION SHARES IN ONE OF THE SIX SUITS FILED ALAN BERK A NEW YORK BUSINESSMAN WHO PURCHASED 1000 LESLIE FAY SHARES DEC 31 SAID THE PRICES THAT HE AND OTHER HOLDERS PAID FOR THE STOCK REFLECTED INFLATED EARNINGS AND REVENUES HE IS SEEKING UNSPECIFIED DAMAGES ON BEHALF OF ALL SHAREHOLDERS WHO BOUGHT LESLIE FAY SHARES DURING THE TIME THAT THE COMPANY ISSUED FINANCIAL RESULTS THAT WERE ALLEGEDLY INFLATED ACCOUNTANTS WHO PERUSE CORPORATE BOOKS SAY THAT INVENTORY FIGURES ARE AMONG THE EASIST TO MANIPULATE AND DETECTION BY FINANCIAL ANALYSTS AND EVEN THE OUTSIDE AUDITORS IS DIFFICULT HOWARD SCHILIT AN ACCOUNTING PROFESSOR AT AMERICAN UNIVERSITY IN WASHINGTON DC WHO HAS JUST WRITTEN A BOOK ON ACCOUNTING SCAMS SAYS THAT LESLIE FAY'S 1992 NINEMONTHS FINANCIAL RESULTS ARE FILLED WITH RED FLAGS POINTING TO PROBLEMS AT THE COMPANY FOR EXAMPLE WHILE SALES IN THE FIRST NINE MONTHS DIPPED 9 TO 606 MILLION FROM A YEAR EARLIER INVENTORIES ROSE 9 FROM A YEAR EARLIER AT THE SAME TIME ACCOUNTS RECEIVABLE ROSE 70 FOR 1992'S NINE MONTHS OVER THE PREVIOUS YEAR ALSO WHILE LESLIE FAY EARNED 237 MILLION IN THE NINE MONTHS ENDED LAST OCT 3 ITS NET CASH USED IN OPERATIONS SANK TO CLOSE TO A NEGATIVE 91 MILLION FROM A NEGATIVE 274 MILLION A YEAR EARLIER LESLIE FAY AND FINANCIAL ANALYSTS WHO COVER THE COMPANY FIGURE THAT WITHOUT THESE MANIPULATIONS THE COMPANY WILL REPORT LITTLE IF ANY PROFIT FOR 1992 EARLIER ANALYSTS HAD ESTIMATED THAT LAST YEAR'S PROFIT RANGED ANYWHERE FROM 24 MILLION OR 125 A SHARE TO 25 MILLION OR 135 A SHARE IN 1991 THE COMPANY REPORTED NET INCOME OF 293 MILLION OR 155 A SHARE ON SALES OF 8366 MILLION THE COMPANY'S MR GORDON SAID EXECUTIVES' PAY WOULD BE ADJUSTED TO NEW PROFIT LEVELS IF EARNINGS ARE RESTATED AFTER THE INVESTIGATION IF NECESSARY HE SAID THE EXECUTIVES WILL HAVE TO RETURN SOME OF THE COMPENSATION IF IT ISN'T WARRANTED ACCORDING TO THE COMPANY'S 1991 PROXY STATEMENT MR POMERANTZ GOT 796915 IN SALARY AND BONUSES AND AN ADDED 28 MILLION IN COMPENSATION THAT YEAR HE RECEIVED THE BIGGER AMOUNT UNDER A MANAGEMENT AGREEMENT REWARDING HIM IF PRETAX PROFITS DURING A GIVEN YEAR TOP 16 MILLION UNDER A SIMILAR FORMULA ALAN GOLUB LESLIE FAY'S FORMER PRESIDENT AND CHIEF OPERATING OFFICER WHO RETIRED LAST MONTH RECEIVED 525000 IN SALARY AND BONUSES PLUS 19 MILLION IN ADDED COMPENSATION MR KENIA'S COMPENSATION WASN'T TIED TO COMPANY PROFITS MR POMERANTZ DEFENDED HIS PAY PACKAGE SAYING HE HADN'T GOTTEN A RAISE IN SALARY IN 15 YEARS AND THAT THE 28 MILLION ADDED COMPENSATION IS BASED ON THE COMPANY'S LEGITIMATE PROFITS JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9302030058 930203 ABREAST OF THE MARKET INDUSTRIALS DECREASE BY 351 POINTS AS INVESTORS POUND DRUG STOCKS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ENDED MIXED AS INVESTORS POUNDED THE DRUG SECTOR AFTER ONE WALL STREET FIRM LOWERED ITS RATINGS ON THE GROUP THE DRUG STOCKS GOT KILLED SAID JAMES ANDREWS HEAD OF TRADING AT JANNEY MONTGOMERY SCOTT IN PHILADELPHIA ANALYSTS SAID HIGHER INTEREST RATES ALSO WEIGHED ON STOCK PRICES STIFLING THE MARKET FROM MAKING BIG GAINS ON THE HEELS OF MONDAY'S RALLY THOUGH ADVANCING ISSUES TOPPED DECLINERS 1095 TO 775 THE DOW JONES INDUSTRIAL AVERAGE FELL 351 POINTS TO 332867 STANDARD & POOR'S 500STOCK INDEX EDGED UP 004 POINT TO 44256 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 017 POINT TO 24398 BOTH INDEXES CLOSED AT RECORDS VOLUME ON THE BIG BOARD WAS HEAVY WITH 269250000 SHARES CHANGING HANDS UP FROM 238340000 SHARES MONDAY STOCKS OF PHARMACEUTICAL COMPANIES STARTED FALLING SOON AFTER SALOMON BROTHERS ANALYST MARIOLA HAGGAR SAID SHE WAS DOWNGRADING HER BUY RATINGS ON STOCKS IN THE GROUP TO HOLDS BECAUSE SHE IS INCREASINGLY CONCERNED ABOUT THE NEGATIVE PSYCHOLOGICAL IMPACT OF THE HEALTHCARE REFORM DEBATE AMONG THE COMPANIES MS HAGGAR HAD RECOMMENDED INVESTORS BUY WERE MERCK PFIZER SCHERINGPLOUGH AND WARNERLAMBERT MS HAGGAR SAID SHE EXPECTS THE NATIONAL DEBATE ON HEALTHCARE REFORM WILL BE LONG AND PROTRACTED AS A RESULT SHE DOESN'T EXPECT DRUG STOCKS TO OUTPERFORM THE MARKET OVER THE NEXT SIX TO 12 MONTHS AND BETWEEN NOW AND MAY MS HAGGAR THINKS DRUG STOCKS COULD BE VULNERABLE TO SETBACKS OF BETWEEN 10 TO 15 SIMPLY BECAUSE OF THE NEGATIVE PUBLICITY AND WHOLE RHETORIC OF HEALTHCARE REFORM IN RESPONSE INVESTORS PUNISHED DRUG STOCKS DRIVING SOME ISSUES TO NEW 52WEEK LOWS MERCK SLID 1 1/4 TO 37 5/8 AND BRISTOLMYERS SQUIBB SKIDDED 1 3/8 TO 58 1/8 AS BOTH STOCKS HIT NEW 52WEEK LOWS PFIZER SANK 2 7/8 TO 63 1/8 SCHERINGPLOUGH DROPPED 1 1/2 TO 58 5/8 AND WARNERLAMBERT TUMBLED 1 1/8 TO 64 MR ANDREWS SAID HE EXPECTS STOCK PRICES TO TREND HIGHER IN THE NEXT FEW WEEKS BECAUSE INSTITUTIONAL INVESTORS ARE LOADED TO THE GILLS WITH CASH THE CLEAREST SIGN OF THIS CAME MONDAY WHEN THE INVESTMENT COMPANY INSTITUTE A MUTUAL FUND TRADE GROUP REPORTED THAT DECEMBER'S STOCKFUND INFLOW WAS 92 BILLION THE SECOND HIGHEST ON RECORD AND JUST SLIGHTLY BEHIND NOVEMBER'S RECORD OF 99 BILLION THE CASH POSITIONS IN THESE INSTITUTIONS ARE SCARY AND THAT'S WHAT CAN TURN AROUND A MARKET SAID MR ANDREWS BUT MR ANDREWS SAID INVESTORS SHOULD BE MORE CAUTIOUS AS THE FIRSTQUARTER EARNINGS SEASON APPROACHES THAT'S BECAUSE IF THE EARNINGS COME AT ANYTHING LESS THAN A POSITIVE SURPRISE THE MARKET IS UNMERCIFUL HE SAID INDEED INVESTORS HAMMERED STOCKS OF COMPANIES WHOSE EARNINGS FAILED TO LIVE UP TO EXPECTATIONS AMERICAN CYANAMID SLID 1 3/4 TO 51 1/4 THE MEDICAL PRODUCTS CONCERN SAID THAT ITS PROFIT GREW TO 719 MILLION OR 80 CENTS A SHARE IN THE FOURTH QUARTER FROM 659 MILLION OR 72 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD PREDICTED THE COMPANY WOULD EARN 81 CENTS A SHARE TRIBUNE SLIPPED 7/8 TO 51 1/2 THE NEWSPAPER PUBLISHING COMPANY'S PROFIT BALLOONED TO 42 MILLION OR 57 CENTS A SHARE IN THE FOURTH QUARTER FROM 327 MILLION OR 44 CENTS A SHARE A YEAR EARLIER ANALYSTS WERE LOOKING FOR PROFIT OF 68 CENTS A SHARE EARNINGS FOR THE LATEST QUARTER INCLUDED MAJOR LEAGUE BASEBALL EXPANSION FEES OF 77 MILLION AFTER TAXES AND A CHARGE OF 76 MILLION AFTER TAXES JOHNSON & JOHNSON LOST 1/2 TO 43 1/2 THE HEALTH PRODUCTS COMPANY SAID ITS PROFIT IN THE FOURTH QUARTER SWELLED TO 307 MILLION OR 47 CENTS A SHARE FROM 274 MILLION OR 41 CENTS A SHARE A YEAR EARLIER THE LATEST FOURTHQUARTER EARNINGS INCLUDED A CHARGE OF 9 MILLION FOR THE ADOPTION OF NEW ACCOUNTING STANDARDS MANY ANALYSTS WERE EXPECTING JOHNSON & JOHNSON TO EARN 48 CENTS A SHARE CHRYSLER ENDED UNCHANGED AT 38 3/4 THE AUTO MAKER OFFERED 46 MILLION SHARES TO INVESTORS AT 3875 EACH RAISING ALMOST 18 BILLION IT IS THE FIFTH BIGGEST STOCK OFFERING EVER IN THE US ACCORDING TO SECURITIES DATA FIRST BOSTON IS THE LEAD UNDERWRITER TENNECO GAINED 1 1/8 TO 41 7/8 THE NATURAL GAS COMPANY EARNED 35 MILLION OR 21 CENTS A SHARE IN THE FOURTH QUARTER AFTER A LOSS OF 26 MILLION OR 24 CENTS A SHARE A YEAR EARLIER SPRINT EDGED UP 5/8 TO 27 1/4 THE TELEPHONE COMPANY'S PROFIT IN THE FOURTH QUARTER GREW TO 1172 MILLION OR 53 CENTS A SHARE FROM 981 MILLION OR 45 CENTS A SHARE PEPSICO SLIPPED 1/2 TO 41 3/4 THE PURCHASE NY SOFT DRINK COMPANY'S FOURTHQUARTER PROFIT FELL TO 2656 MILLION OR 32 CENTS A SHARE FROM 2711 MILLION OR 34 CENTS A SHARE A YEAR EARLIER THE LATEST QUARTER'S PROFIT INCLUDED 1285 MILLION OF CHARGES MAINLY FOR RESTRUCTURING KNIGHTRIDDER STUMBLED 1 3/8 TO 62 1/8 THE MEDIA CONCERN EARNED 436 MILLION OR 79 CENTS A SHARE IN THE FOURTH QUARTER DOWN FROM 464 MILLION OR 86 CENTS A SHARE A YEAR EARLIER RESULTS FOR THE LATEST QUARTER INCLUDE CHARGES OF 14 CENTS A SHARE RELATED TO ACCOUNTING CHANGES THE COMPANY SAID ITS FIRSTQUARTER EARNINGS WILL PROBABLY BE BELOW THE 46 CENTS A SHARE THE COMPANY EARNED A YEAR EARLIER LESLIE FAY LOST 1/2 TO 6 7/8 AFTER PLUNGING MORE THAN 4 5/8 MONDAY THE WOMEN'S CLOTHING CONCERN SAID IT IS INVESTIGATING ALLEGED ACCOUNTING IRREGULARITIES THAT COULD WIPE OUT ITS PROFIT FOR 1992 AND FORCE IT TO RESTATE ITS 1991 RESULTS 9302030057 930203 OTC FOCUS INDEX CLIMBS 048 AS CELLULAR STOCKS LEAD THE WAY DELL COMPUTER IS WEAK BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET CONTINUED TO REBOUND FROM LAST WEEK'S SLUMP WITH CELLULAR STOCKS BOUNCING BACK STRONGLY THE NASDAQ COMPOSITE INDEX CLIMBED 335 OR 048 TO 70512 JUST TWO POINTS SHY OF ITS RECORD HIGH OF 70716 ADVANCING ISSUES OUTNUMBERED DECLINERS 1417 TO 1254 ON TOTAL VOLUME OF 2541 MILLION SHARES UP FROM MONDAY'S 2139 MILLION ALTHOUGH THE BIOTECHS ARE DOWN THE MARKET WAS LIFTED BY THE CELLULAR STOCKS AND THE STRENGTH IN THE BANK STOCKS SAID JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS CELLULAR STOCKS TOOK A BEATING LAST WEEK AMID SPECULATION THAT CELLULAR PHONES COULD CAUSE HEALTH PROBLEMS BUT AS THOSE FEARS FADE THE STOCKS ARE REGAINING LOST GROUND MCCAW CELLULAR COMMUNICATIONS ROSE 1 7/8 TO 35 1/4 LIN BROADCASTING LEAPED 2 1/8 TO 82 3/4 AND VANGUARD CELLULAR SYSTEMS JUMPED 1 1/4 TO 23 1/2 DELL COMPUTER PLUNGED 4 TO 45 DELL SAID ON MONDAY THAT FOURTHQUARTER SALES WOULD BE BELOW WALL STREET ESTIMATES THE AUSTIN TEXAS PERSONAL COMPUTER COMPANY BLAMED THE DIFFICULTIES ENCOUNTERED IN SWITCHING OVER TO NEW PRODUCTS THE COMPANY PROJECTED REVENUE FOR THE FISCAL FOURTH QUARTER ENDED LAST MONTH AT 615 MILLION BELOW THE 637 MILLION CONSENSUS ESTIMATE BY ANALYSTS MICHAEL DELL THE COMPANY'S CHIEF EXECUTIVE OFFICER SAID THE SUPPLY PROBLEM WITH THE COMPANY'S NEW PRODUCTS WAS BEING ADDRESSED DELL OFFICIALS ALSO SAID THE COMPANY WOULD PROCEED WITH A PLANNED STOCK OFFERING WHICH WAS FILED IN NOVEMBER AND DELAYED FROM AN INITIALLY PROJECTED DECEMBER PRICING FOLLOWING THE DISCLOSURE OF AUDITED FISCAL 1993 RESULTS THAT WOULD PLACE THE PRICING OF THE OFFERING IN MARCH OFFICIALS SAID PERSONAL COMPUTER AND SOFTWARE MAKER APPLE COMPUTER FELL 1 TO 60 1/4 SUN MICROSYSTEMS A MAKER OF WORKSTATIONS EASED 3/8 TO 38 A MAJOR SEMICONDUCTOR COMPANY INTEL WAS UNCHANGED AT 111 1/4 BUT MOST OF THE TECHNOLOGY GROUP WAS SUPPORTED BY STRONG BUYING TRADERS SAID MICROSOFT ROSE 1 1/4 TO 89 CISCO SYSTEMS GAINED 1 7/8 TO 92 5/8 AND NOVELL EDGED UP 1/4 TO 31 1/4 SYMANTEC ADDED 1 7/8 TO 12 1/2 GOLDMAN SACHS INITIATED COVERAGE OF THE CUPERTINO CALIF SOFTWARE COMPANY WITH A MODERATE OUTPERFORM RATING CITING AN EXPECTED REBOUND IN THE COMPANY'S EARNINGS DESPITE THE MARKET'S GAINS KIDDER PEABODY'S VICE PRESIDENT OF EQUITY TRADING GEORGE BROWN SAID BIOTECHNOLOGY STOCKS CONTINUE TO SHOW WEAKNESS AMGEN SLIPPED 1 TO 59 SYNERGEN DROPPED 2 3/4 TO 52 3/4 AND BIOGEN SANK 1 3/4 TO 37 1/4 TRADERS SAID INVESTORS CONTINUE TO WORRY ABOUT POSSIBLE COSTCONTAINMENT HEALTH CARE POLICIES THAT MIGHT BE ENACTED UNDER PRESIDENT CLINTON A NEW ISSUE NORAND JUMPED 4 TO 19 1/2 FROM ITS INITIAL OFFERING PRICE OF 15 1/2 THE COMPANY PRICED 35 MILLION SHARES THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE THE SIZE OF THE OFFERING WAS INCREASED FROM THE ORIGINALLY PLANNED THREE MILLION SHARES AND THE PRICE WAS ABOVE THE EXPECTED RANGE OF 13 TO 15 ROCKY SHOES & BOOTS INC PRICED 1650000 SHARES AT 10 THROUGH UNDERWRITERS LED BY JC BRADFORD & CO THE COMPANY HAD EXPECTED THE SHARES TO BE OFFERED AT BETWEEN 9 AND 10 BASED IN NELSONVILLE OHIO THE COMPANY MAKES MEN'S AND WOMEN'S FOOTWEAR ELSEWHERE GATEWAY FINANCIAL FELL 3/8 TO 5 5/8 THE NORWALK CONN COMPANY POSTED A FOURTHQUARTER LOSS OF 326 A SHARE WIDENED FROM A LOSS OF 132 A SHARE A YEAR EARLIER THE BANK HOLDING COMPANY ALSO ANNOUNCED A BALANCESHEET RESTRUCTURING PLAN THAT WILL INCLUDE THE BULK SALE OF CERTAIN NONPERFORMING ASSETS AND AN UNDERWRITTEN RIGHTS OFFERING TW HOLDINGS DROPPED 7/16 TO 3 5/8 THE SPARTANBURG SC COMPANY POSTED A FOURTHQUARTER LOSS OF 11 CENTS A SHARE BEFORE A ONETIME CHARGE COMPARED WITH A YEARAGO NET LOSS OF FOUR CENTS A SHARE IN THE LATEST QUARTER THE NET LOSS WAS 1 A SHARE REFLECTING PREMIUMS PAID TO RETIRE SOME DEBT AND TO CHARGE OFF RELATED UNAMORTIZED DEFERRED FINANCING COSTS IN CONNECTION WITH THE COMPANY'S RECAPITALIZATION TW HOLDINGS PROVIDES ONSITE SERVICE AND VENDING MACHINES TO OFFICES SCHOOLS AND OTHER INSTITUTIONS IT IS ALSO AN OPERATOR AND FRANCHISER OF SEVERAL RESTAURANT CHAINS SUCH AS DENNY'S AND HARDEE'S PEOPLESOFT SURGED 3 TO 39 3/4 THE SOFTWARE PRODUCTS COMPANY SAID IT EARNED 18 CENTS A SHARE IN THE FOURTH QUARTER COMPARED WITH 13 CENTS A SHARE A YEAR EARLIER THE HIGHFLYING NEW STOCK WAS PRICED AT 17 IN MIDNOVEMBER LONE STAR STEAKHOUSE SURGED 3 3/8 TO 41 3/4 THE STEAKHOUSE CONCERN SAID SAMESTORE SALES FOR THE FIRST 28 DAYS OF JANUARY WERE UP 16 FROM THE YEARAGO PERIOD IN AN INTERVIEW WITH DOW JONES NEWS SERVICE DOUGLAS GLENDENNING THE COMPANY'S CHIEF OPERATING OFFICER SAID HE DIDN'T KNOW WHETHER SUCH A HIGH NUMBER WAS SUSTAINABLE FOR THE COMPANY THE COMPANY APPEARED AT THE MONTGOMERY SECURITIES RESTAURANT & HOSPITALITY CONFERENCE YESTERDAY MORNING A COMPANY OFFICIAL SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR 1993 EARNINGS OF 85 CENTS A SHARE UP FROM 35 CENTS IN 1992 THE COMPANY SAID IT PLANS TO OPEN 36 NEW RESTAURANTS THIS YEAR UP FROM THE PREVIOUSLY ANNOUNCED 24 MARY ROMANO CONTRIBUTED TO THIS ARTICLE 9302030056 930203 LEISURE & ARTS BOOKSHELF OF FAST PACKAGE DELIVERY AND FAT PLANES BY STANLEY W ANGRIST AS FREDERICK SMITH CREATED FEDERAL EXPRESS CORP FROM THE GROUND UP HE HAD MORE NARROW ESCAPES IN FIVE YEARS THAN MOST PEOPLE HAVE IN A LIFETIME AND IN ALMOST EVERY CASE THE SURVIVAL OF THE COMPANY WAS ON THE LINE VANCE TRIMBLE TELLS US IN OVERNIGHT SUCCESS CROWN 342 PAGES 25 AN OFTEN LIVELY BOOK MR SMITH FIRST PROPOSED HIS IDEA FOR AN OVERNIGHT PACKAGEDELIVERY SERVICE IN A PAPER HE WROTE FOR AN ECONOMICS COURSE AT YALE IN 1965 THE C HE GOT FOR IT ASSURED HIM A SPOT IN ACADEMIC LEGEND IN STARTING HIS COMPANY MR SMITH CHRONICALLY SUFFERED FROM A SHORTAGE OF CAPITAL SCURRYING LIKE A BEAVER TO AMASS ENOUGH FUNDS FOR A FEW MORE MONTHS OF LIFE FATE MUST HAVE BEEN ON HIS SIDE ON A WEEKEND TRIP TO LAS VEGAS MR SMITH WON 27000 PLAYING BLACKJACK AND MET THE NEXT WEEK'S PAYROLL MR SMITH'S ZEAL AND SINGLENESS OF PURPOSE CANNOT HELP BUT MAKE READERS ASK THE AGEOLD QUESTION DO THE ENDS ALWAYS JUSTIFY THE MEANS AS HE RAISED MONEY FROM ONE SOURCE AFTER ANOTHER HE CUT SOME MIGHTY CLOSE CORNERS FOR EXAMPLE MR TRIMBLE DESCRIBES HOW HE CREATED THE MINUTES OF A MEETING AUTHORIZING HIM TO PLEDGE SOME STOCK TO A BANK AS COLLATERAL HE THEN SIGNED THE COMPANY SECRETARY'S NAME TO THE DOCUMENT THEREBY MAKING IT NOT ONLY FICTITIOUS BUT A FORGERY ON ANOTHER OCCASION HE BAMBOOZLED HIS SISTER FREDETTE EAGLE INTO SIGNING OVER ALL OF HER SHARES IN A JOINTLY OWNED COMPANY SO THAT THEY TOO COULD BE PLEDGED TO THE BANK AS COLLATERAL THIS CREATED A FAMILY RIFT THAT HAS YET TO BE HEALED INTERESTINGLY SHE WANTS TO MAKE PEACE UNLIKE HER BROTHER WHO APPARENTLY THOUGHT IT WAS DISLOYAL OF HER TO BRING IN LAWYERS DURING THEIR DISPUTE NO DOUBT MR SMITH WOULD SAY THAT THE IMPORTANT THING IS THAT FEDERAL EXPRESS SUCCEEDED BEYOND HIS OR EVEN HIS INVESTORS' WILDEST DREAMS HE UNFORTUNATELY ELECTED NOT TO COOPERATE WITH MR TRIMBLE IN THE WRITING OF THIS BOOK NOR DID ANY OF THE CURRENT COMPANY OFFICERS BUT BECAUSE MR SMITH HAS REPLACED MOST OF HIS ORIGINAL CREW THERE WAS NO SHORTAGE OF FORMER OFFICERS WILLING TO TELL ABOUT THE HEADY EARLY DAYS OF FEDERAL EXPRESS READERS CAN PROFITABLY SKIP THE EARLY CHAPTERS ABOUT THE DOINGS OF MR SMITH'S GRANDFATHER AND FATHER BOTH OF WHOM WERE ALSO IN THE TRANSPORTATION BUSINESS THE RECREATION IN THESE CHAPTERS OF EXACT CONVERSATIONS THAT TOOK PLACE DECADES EARLIER CERTAINLY PUSHES LITERARY LICENSE BEYOND CREDULITY ALL YOU NEED TO KNOW IS THAT PROCEEDS FROM THE ESTATE OF MR SMITH'S FATHER PROVIDED MUCH OF THE SEED MONEY FOR FEDERAL EXPRESS AS YOU READ THIS REGARDLESS OF THE TIME OF DAY YOU CAN BE CERTAIN THAT MORE THAN 300 BOEING 747S ARE IN THE AIR AROUND THE WORLD CARRYING UPWARD OF 110000 PEOPLE EQUIVALENT TO THE POPULATION OF A SMALL CITY THAT THIS EVENT HAPPENS ON A CONTINUING BASIS NORMALLY WITHOUT NOTE OR COMMENT IS MOSTLY DUE TO THE VISION OF TWO MEN WHO THOUGHT THAT BY BUILDING AN AIRPLANE ON A SCALE THAT FEW COULD IMAGINE THEY COULD REVOLUTIONIZE AIR TRAVEL BILL ALLEN THEN CHAIRMAN OF BOEING CO AND JUAN TRIPPE THEN CHAIRMAN OF NOW DEFUNCT PAN AMERICAN WORLD AIRWAYS INC BELIEVED AGAINST MIGHTY ODDS THAT THEY COULD MAKE AIR TRAVEL AFFORDABLE TO THE MASSES FEW PEOPLE ARE AWARE OF WHAT A MAJOR ROLE PAN AM PLAYED IN CREATING THE 747 MR TRIPPE FREQUENTLY TAUNTED MR ALLEN WITH THE PHRASE IF YOU BUILD IT I'LL BUY IT ALAS HIS ENTHUSIASM FOR THIS AIRPLANE WAS NOT ENOUGH TO OVERCOME OTHER DEFICIENCIES THAT ABOUNDED AT PAN AM NOT THE LEAST OF WHICH WAS THE FAILURE OF MR TRIPPE TO PREPARE A SUCCESSOR JUST HOW THE 747 CAME TO BE BUILT IS TOLD IN VIVID DETAIL BY CLIVE IRVING IN WIDEBODY MORROW 384 PAGES 25 IT DETAILS HOW A COMPANY WITH A HISTORY OF TECHNOLOGICAL CONSERVATISM CHANGED THE WAY THE WORLD TRAVELED BOEING PROMISED AN AIRPLANE THAT WOULD CARRY 400 PASSENGERS AND A LOAD OF CARGO 5100 MILES AND CRUISE AS HIGH AS 35000 FEET PAN AM'S MR TRIPPE ADDED A REQUIREMENT OF HIS OWN THE 747 HAD TO SHOW A SEATMILE COST THE COST OF FLYING ONE PERSON ONE MILE 30 LOWER THAN THAT OF BOEING'S 707 THE PLANE EVENTUALLY EXCEEDED ALL THOSE GOALS SOME BY HUGE MARGINS ASIDE FROM ITS SIZE THE 747 HAS AN EVEN MORE ASTOUNDING CLAIM TO FAME THE FIRST 747 FLEW BARELY THREE YEARS AFTER ITS ORIGINAL CONFIGURATION DRAWINGS WERE PREPARED BOEING EXPEDITED THE ENGINEERING AND PRODUCTION BECAUSE IT SOON BECAME CLEAR TO MR ALLEN AND A FEW OF HIS SUBORDINATES THAT THEY HAD BET THE COMPANY ON THE PROJECT IF 747S DIDN'T COME ROLLING OFF THE ASSEMBLY LINE IN EARLY 1970 BOEING WOULD BE OUT OF MONEY AND ITS BANKS WERE PREPARED TO PULL THE PLUG BOEING MADE IT BUT ONLY BY THE SKIN OF ITS TEETH IN RECOUNTING THESE DRAMATIC EVENTS MR IRVING DOESN'T IGNORE THE CUTS IN COMFORT THE MANUFACTURER MADE ALONG THE WAY HE CONFIRMS WHAT ALL OVERSEAS TRAVELERS HAVE LONG SUSPECTED TRYING TO KEEP THEIR KNEES FROM THEIR CHINS IN THE '30S THE 10PASSENGER BOEING 247 HAD A GENEROUS 40INCH PITCH BETWEEN ROWS TODAY THE AVERAGE PITCH IN A 747 TOURISTCLASS CABIN IS 33 INCHES 9302030055 930203 LEISURE & ARTS THEATER A YOUNG WOMAN AND THE DEBIL SEA' BY EDWIN WILSON NEW YORK WATCHING A PLAY BY EUGENE O'NEILL CAN BE AN EXASPERATING EXPERIENCE ESPECIALLY AN EARLY PLAY SUCH AS ANNA CHRISTIE A 1921 PULITZER PRIZEWINNER TODAY MUCH OF IT SEEMS HOPELESSLY DATED THERE ARE STRETCHES SO BANAL THAT YOU WONDER HOW IT EVER FOUND ITS WAY TO THE STAGE LET ALONE SUCCEEDED JUST WHEN YOU ARE ABOUT TO GIVE UP HOWEVER YOU FIND YOURSELF GRIPPED BY THE ELEMENTAL EMOTIONS SWEEPING THROUGH THE PLAY AND YOU CAN'T TAKE YOUR EYES OFF THE STAGE ANNA CHRISTIE WAS THE CULMINATION OF O'NEILL'S EARLY PLAYS ABOUT THE SEA CRUSTY OLD CHRIS CHRISTOPHERSON HAS BEEN DRAWN TO THE LIFE OF A SAILOR BY WHAT HE CALLS THE OLE DEBIL SEA A FORCE THAT HE CURSES INCESSANTLY SOME YEARS BEFORE AFTER HIS WIFE DIED HE SENT HIS DAUGHTER ANNA TO LIVE WITH RELATIVES ON A FARM IN MINNESOTA THINKING THAT THE LIFE THERE WOULD BE MORE WHOLESOME THAN WITH HIM BUT HER MALE RELATIVES ON THE FARM MISTREATED HER SEXUALLY AND SHE LATER FELL INTO PROSTITUTION AFTER AN ILLNESS SHE COMES TO A WATERFRONT SALOON IN NEW YORK TO JOIN HER FATHER BELIEVING THAT HE IS A JANITOR WHEN HE ACTUALLY RUNS A COAL BARGE HIDING HER PAST FROM HER FATHER SHE BEGINS LIVING ON THE BARGE AND FINDS THE SEA AIR REJUVENATING WHEN A SWARTHY SAILOR MAT BURKE IS RESCUED FROM A SHIPWRECK AND BROUGHT ON THE BARGE THE TWO FALL IN LOVE MUCH TO HER FATHER'S CONSTERNATION INEVITABLY THOUGH ANNA CONFRONTS THE TWO MEN WITH THE FACTS OF HER PAST AND THEY TURN FROM WORSHIPPING HER AS A SAINT TO CURSING HER AS A WHORE IN THE END IN A TWIST THAT O'NEILL THOUGHT WAS A COMPROMISE WITH SENTIMENTALITY ANNA AND MAT ARE REUNITED EARLY STRETCHES OF THE PLAY ARE DEVOTED MOSTLY TO MINDNUMBING BACKGROUND INFORMATION ON TOP OF WHICH O'NEILL INSISTS ON GIVING HIS CHARACTERS BOGUS ACCENTS CHRIS SPEAKS BROKEN SWEDISH AND MAT A BLARNEYFILLED STAGE IRISH WITH SO MUCH ON THE MINUS SIDE THE ONE ELEMENT THAT CAN TIP THE SCALES IN THE OTHER DIRECTION IS STRONG ACTING AND HERE THE ROUNDABOUT THEATER HAS COME UP WITH TWO WINNERS NATASHA RICHARDSON AND LIAM NEESON MAKING THEIR BROADWAY DEBUTS IN THE ROLES OF ANNA AND MAT WHEN MR NEESON BARE FROM THE WAIST UP AND COVERED WITH WATER AND OIL FROM THE SEA FIRST LANDS ON THE BARGE HIS MUSCLES RIPPLING WE KNOW THAT A MAN OF FIERCE PASSIONS HAS ARRIVED BEFORE THAT MOMENT IN THE EARLY PARTS OF THE PLAY MS RICHARDSON IS NOT QUITE AS SHOPWORN AND VULNERABLE AS ANNA NEEDS TO BE BUT ONCE SHE AND MR NEESON GET TOGETHER THE SPARKS FLY THEY CONVEY NOT ONLY THE ANIMAL MAGNETISM BETWEEN ANNA AND MAT BUT THE DEEP NEED EACH FILLS FOR THE OTHER LATER WHEN ANNA CONFESSES HER PAST AND MAT TURNS HIS FURY ON HER THE TWO JOIN IN A STRUGGLE BETWEEN PAIN AND DESIRE THAT IS MARVELOUSLY CONVEYED THE HIGH POINT IN THE PLAY COMES WHEN ANNA LASHES OUT AT BOTH MAT AND HER FATHER FOR THEIR BLATANT DOUBLE STANDARD THE MEN ARE ALLOWED TO HAVE WOMEN IN EVERY PORT BUT SHE IS SUPPOSED TO BE A VIRGIN MS RICHARDSON IS AT HER BEST UNLEASHING HER ANGER ON THOSE WHO SUPPOSEDLY LOVE HER AS OLD CHRIS RIP TORN IS A BIT LOST WITH THE SWEDISH ACCENT BUT IN THE MAIN HE HOLDS UP HIS END AS DOES ANNE MEARA AS HIS ERSTWHILE MISTRESS WHO IS FORCED TO DISAPPEAR WHEN ANNA COMES ON THE SCENE DIRECTOR DAVID LEVEAUX HAS GUIDED THE PLAYERS WITH A SURE HAND AND SOFTENED THE EDGES AROUND O'NEILL'S JAGGED SCRIPT THE PLAY CALLS FOR FOG TO ENVELOP THE BARGE AS WELL AS THE SOULS OF THE CHARACTERS MR LEVEAUX HAS USED HIS STAGE FOG JUDICIOUSLY AND FOR ONCE IT BECOMES AN INTEGRAL PART OF THE ACTION NOT JUST A GIMMICK THE DIRECTOR HAS ALSO MADE THE ENDING MORE MEANINGFUL AND PALATABLE THAN USUAL THOUGH ANNA AND MAT ARE RECONCILED IT IS CLEAR THIS IS A TENUOUS ARRANGEMENT THAT MAY BE TORN ASUNDER NOT BY THE DEBIL SEA BUT BY HUMAN FAILURESTAR THE ROUNDABOUT IS ONE OF TWO NOTFORPROFIT THEATERS THAT BEGAN PRODUCING ON BROADWAY LAST SEASON THE OTHER IS THE NATIONAL ACTORS THEATRE NAT HEADED BY TONY RANDALL SO FAR THE ROUNDABOUT HAS HAD MORE SUCCESS THAN THE NAT WHICH HAS HAD DIFFICULTY FINDING ITS FOOTING WITH IT'S LATEST PRODUCTION GEORGE BERNARD SHAW'S SAINT JOAN IT EDGES CLOSER THOUGH IT IS STILL FIGHTING AN UPHILL BATTLE THE PROBLEM THIS TIME IS MUCH MORE WITH THE SCRIPT THAN THE PRODUCTION LIKE ANNA CHRISTIE SAINT JOAN WHICH WAS FIRST PRESENTED IN 1923 SHOWS ITS AGE THERE WAS A TIME WHEN THE LENGTHY POLITICAL AND ECCLESIASTICAL ARGUMENTS IN THIS PLAY COULD HOLD THE INTEREST OF AN AUDIENCE BUT NOW MANY OF THEM SEEM IRRELEVANT IN SCENE FOUR FOR EXAMPLE THE ENGLISH EARL WARWICK JOHN NEVILLE AND THE FRENCH BISHOP CAUCHON LOUIS TURENNE ARGUE WHICH OF JOAN'S SINS IS MORE REPREHENSIBLE HER SEDITION AS A SOLDIER OR HER BLASPHEMY AS A CHRISTIAN THE POINT AT ISSUE BECOMES CLEAR WITHIN THE FIRST TWO OR THREE MINUTES BUT THE DEBATE GOES ON INTERMINABLY THERE IS ANOTHER PROBLEM WITH SAINT JOAN JOAN HERSELF DOES NOT CHANGE SHE HEARS VOICES AS A YOUNG WOMAN AND EXCEPT FOR A MOMENTARY LAPSE NEAR THE END NEVER ONCE WAVERS IN HER CONVICTION THAT GOD HAS CALLED HER TO SAVE FRANCE SHE MEETS A SERIES OF FOOLS AND DOUBTERS AND SOME OF THESE ENCOUNTERS ARE HIGHLY AMUSING BUT THERE IS NEVER ANY QUESTION ABOUT THE OUTCOME SHE BESTS THEM ALL WITH THESE HURDLES TO OVERCOME A HEAVY BURDEN RESTS ON THE DIRECTOR AND THE PERFORMERS IN THE PRODUCTION AT THE LYCEUM THEATER VETERAN DIRECTOR MICHAEL LANGHAM HAS GIVEN IT HIS BEST SHOT HE HAS CREATED LOTS OF ATMOSPHERE HIS PERFORMERS SPEAK EFFECTIVELY AND HE MOVES THE ACTION BRISKLY WHEN IT IS NOT SLOWED BY CONVERSATION FOR THE MOST PART MR LANGHAM HAS ASSEMBLED AN IMPRESSIVE COMPANY AND HE IS PARTICULARLY BLESSED WITH HIS LEADING LADY MARYANN PLUNKETT IN THE PART OF JOAN HAVING DISTINGUISHED HERSELF IN A VARIETY ROLES WITH THE NAT AND ELSEWHERE MS PLUNKETT HERE GETS THE STARRING PART SHE DESERVES AND DOES IT JUSTICE PORTRAYING JOAN AS A PASSIONATE YET DOWNTOEARTH NONONSENSE CRUSADER SHE CARRIES THE PLAY ALONG ON A TIDAL WAVE OF ENERGY CONVICTION AND HIGH SPIRITS 9302030054 930203 BUSINESS BRIEF LAC MINERALS LTD FOURTHQUARTER NET INCOME JUMPED AS COSTS DECLINED LAC MINERALS LTD REPORTED FOURTHQUARTER PROFIT ALMOST TRIPLED MAINLY BECAUSE OF A 19 DECLINE IN THE COMPANY'S COST OF PRODUCING GOLD THE RESULTS EXCEEDED ANALYSTS' FORECASTS BOOSTING LAC'S SHARE PRICE IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE LAC COMMON WHICH LAST WEEK HIT A 365DAY LOW OF 425 CLOSED AT 5 UP 125 CENTS ON VOLUME OF 13 MILLION SHARES LAC REPORTED NET INCOME IN THE QUARTER ROSE TO 57 MILLION OR FOUR CENTS A SHARE FROM 2 MILLION OR ONE CENT A SHARE A YEAR EARLIER REVENUE ROSE 10 TO 1253 MILLION FROM 1137 MILLION LAC'S AVERAGE COST OF PRODUCTION FELL IN THE QUARTER TO 197 AN OUNCE OF GOLD FROM 243 AN OUNCE THE YEAR EARLIER FOR ALL OF 1992 LAC REPORTED PROFIT OF 127 MILLION OR NINE CENTS A SHARE DOWN FROM 154 MILLION OR 12 CENTS A SHARE A YEAR EARLIER THE COMPANY SOLD 11 MILLION OUNCES OF GOLD IN 1992 10 MORE THAN IN 1991 HOWEVER REVENUE WAS FLAT AT 4864 MILLION BECAUSE OF LOWER GOLD PRICES 9302030053 930203 INTERNATIONAL BRIEF POHANG IRON & STEEL CO YEAR'S NET INCOME GREW 27 ON SALES INCREASE OF 61 POHANG IRON & STEEL CO SOUTH KOREA'S LARGEST STEEL MAKER REPORTED STRONG INCREASES IN SALES AND PROFIT FOR THE YEAR THE COMPANY KNOWN AS POSCO ATTRIBUTED THE RISE TO ITS EFFORTS TO CUT EXPENSES AND PRODUCE HIGHER VALUEADDED PRODUCTS NET INCOME ROSE 27 TO 1851 BILLION WON 2331 MILLION SALES ROSE 61 TO 618 TRILLION WON 778 BILLION POSCO'S AUSTERITY EFFORTS WERE DRIVEN BY A SENSE OF CRISIS AT A COMPANY THAT HAS NEVER REPORTED A LOSS SINCE BEGINNING PRODUCTION IN 1973 IN THE PAST YEAR IT WAS THREATENED BY A BAD BUSINESS CLIMATE MARKED BY A PROLONGED GLUT IN THE DOMESTIC AND GLOBAL STEEL MARKET POSCO SAVED 2198 BILLION WON IN EXPENSES HELPING TO OFFSET AN ESTIMATED 2364 BILLION WON LOSS FROM AN INTERNATIONAL PRICE WAR IN STEEL PRODUCTS OFFICIALS SAID THE COMPANY EXPECTS TO SUSTAIN ITS STRONG PERFORMANCE FOR THE FISCAL 1993 YEAR WITH A GOAL OF A SALES INCREASE OF 10 TO 68 TRILLION WON AND A PROFIT INCREASE OF 19 TO 220 BILLION WON 9302030052 930203 ECONOMY PENSION AGENCY FACES THREAT EXCHIEF WARNS FEDERAL INSURANCE PROGRAM FINANCES GROW WORSE LEGISLATION IS URGED BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FINANCES OF THE GOVERNMENT'S PENSIONINSURANCE AGENCY HAVE WORSENED FURTHER THE AGENCY'S FORMER CHIEF TOLD CONGRESS THE PENSION BENEFIT GUARANTY CORP FACES UNDERFUNDING OF 12 BILLION TO 20 BILLION AT PENSION PLANS OF TROUBLED COMPANIES JAMES LOCKHART FORMER EXECUTIVE DIRECTOR OF THE AGENCY TESTIFIED AT A HOUSE LABORMANAGEMENT RELATIONS SUBCOMMITTEE THE AGENCY PREVIOUSLY SAID THAT THESE REASONABLY POSSIBLE LOSSES WHICH ARE THE LOSSES MOST LIKELY TO OCCUR TOTALED ABOUT 13 BILLION THE AGENCY IS ALREADY SHOWING A DEFICIT OF MORE THAN 2 BILLION REFLECTING THE AMOUNT BY WHICH THE AGENCY'S OBLIGATIONS TO PAY BENEFITS FOR TERMINATED CORPORATE PENSION PLANS EXCEEDS ITS ASSETS SO THE WORSENING FINANCIAL PICTURE IS ESCALATING CONCERN THAT MORE ASSISTANCE WILL BE NEEDED MUCH OF IT FROM EMPLOYERS AND EVENTUALLY PERHAPS FROM A BAILOUT BY TAXPAYERS THE PROBLEM IS FAR FROM MATCHING THE SIGNIFICANCE OF THE MASSIVE SAVINGSANDLOAN BAILOUT OF RECENT YEARS ALL SIDES AGREE BUT MR LOCKHART WHO LEFT THE AGENCY LAST MONTH AFTER THE CLINTON ADMINISTRATION TOOK OFFICE HAS FREQUENTLY SOUNDED WARNINGS THAT THE PENSIONINSURANCE AGENCY'S FINANCIAL CONDITION IS DETERIORATING YESTERDAY HE REPEATED AN ASSERTION THAT LEGISLATION IS NEEDED TO FORCE COMPANIES WITH UNDERFUNDED PLANS TO NARROW THE FUNDING GAP WHEN COMPANIES WITH UNDERFUNDED DEFINEDBENEFIT PENSION PLANS ARE FORCED TO TERMINATE THEM THE FEDERAL AGENCY TAKES OVER COVERING MOST OF THE BENEFIT PAYMENTS MR LOCKHART ALSO SAID THE AGENCY FACES UNDERFUNDING OF AT LEAST 51 BILLION FOR PRIVATE PENSION PLANS AT ALL COMPANIES THIS FIGURE IS SIMILAR TO PREVIOUS ESTIMATES SHORT OF A CONGRESSIONAL CRACKDOWN ON UNDERFUNDING THE CONGRESS WILL HAVE TO RAISE PREMIUMS YET AGAIN WHICH WILL DRIVE THE WELLFUNDED PLANS OUT OF THIS VOLUNTARY DEFINEDBENEFIT PLAN SYSTEM MR LOCKHART SAID THE PENSIONINSURANCE AGENCY HAS ESTIMATED THAT TO COVER ITS FUTURE DEFICITS THROUGH PREMIUM INCREASES ALONE WOULD REQUIRE BOOSTING THE YEARLY PREMIUM FOR WELLFUNDED PLANS TO 58 FOR EACH PARTICIPANT AND THE PREMIUM FOR UNDERFUNDED FUNDS UP TO 219 FOR EACH WORKER AND RETIREE THE CURRENT SCHEDULE INVOLVES A BASIC 19 FEE FOR EACH PARTICIPANT FOR WELLFUNDED PLANS AND UP TO 72 APIECE FOR UNDERFUNDED ONES AND IF PREMIUMS AREN'T RAISED ENOUGH OR IF THE INCREASES SPUR PLAN SPONSORS TO TERMINATE DEFINEDBENEFIT PLANS THE AGENCY WILL EVENTUALLY HAVE TO TURN TO THE AMERICAN TAXPAYER IF IT IS TO CONTINUE TO MEET ITS BENEFIT OBLIGATIONS CONGRESS'S GENERAL ACCOUNTING OFFICE HAS WARNED THE ISSUE OF THE PENSION INSURER'S FINANCIAL OUTLOOK HAS BECOME HOTLY CONTESTED HOWEVER WITH SOME BENEFIT EXPERTS ALONG WITH LABOR UNIONS AND OTHERS INSISTING THE PROBLEM IS OVERBLOWN THEY SAY FOR INSTANCE THAT THE AGENCY HAS ASSETS OF MORE THAN 6 BILLION AND THAT ITS BENEFIT PAYMENT OBLIGATIONS ARE STRETCHED OUT OVER MANY YEARS OVERALL DEFINEDBENEFIT PLANS HAVE 13 TRILLION IN ASSETS TO BACK 900 BILLION IN LIABILITIES THOUGH SIGNIFICANT POCKETS OF UNDERFUNDING EXIST SAID DALLAS SALISBURY PRESIDENT OF THE EMPLOYEE BENEFIT RESEARCH INSTITUTE AS OF SEPT 30 1992 THE END OF THE AGENCY'S FISCAL YEAR ITS BALANCESHEET DEFICIT FOR SINGLEEMPLOYER PENSION FUNDS GREW TO 27 BILLION FROM 25 BILLION A YEAR EARLIER MR LOCKHART SAID BECAUSE OF SURPLUSES FOR MULTIEMPLOYER FUNDS THE AGENCY'S OVERALL DEFICIT WAS 25 BILLION AT THE END OF FISCAL 1992 COMPARED WITH 23 BILLION AT THE CLOSE OF FISCAL 1991 HE SAID TOTAL AGENCY LIABILITIES WHICH REPRESENT THE BENEFIT OBLIGATIONS ASSUMED BY THE AGENCY TOPPED 9 BILLION AT THE END OF FISCAL 1992 UP FROM 82 BILLION IN FISCAL 1991 MR LOCKHART SAID OVER THE NEXT DECADE A PESSIMISTIC SCENARIO COULD MEAN A DEFICIT IN THE RANGE OF 16 BILLION TO 28 BILLION IN CURRENT DOLLARS HE ADDED THIS COMPARES WITH A FORECAST OF AS MUCH AS 18 BILLION BY THE YEAR 2001 MADE A YEAR AGO WITHOUT CONGRESSIONAL ACTION TO REQUIRE NARROWING OF UNDERFUNDING TOTALS WELLFUNDED PLANS ARE EXPECTED TO FACE SIZABLE INCREASES IN PENSION BENEFIT GUARANTY CORP INSURANCE PREMIUMS THE CONGRESSIONAL BUDGET OFFICE IS EXPECTED TO REPORT TOMORROW THE BUDGET OFFICE WILL PRESENT TESTIMONY IN ANOTHER HEARING TO BE HELD BY THE HOUSE WAYS AND MEANS COMMITTEE'S OVERSIGHT SUBCOMMITTEE UNDERFUNDED PLANS WOULD SUSTAIN EVEN BIGGER PREMIUM INCREASES BUT THOSE COMPANIES WOULD STILL FIND IT ADVANTAGEOUS TO CONTINUE UNDERFUNDING THEIR PLANS THE BUDGET OFFICE IS EXPECTED TO SAY THE BUDGETOFFICE STUDY WAS REQUESTED BY REP JJ PICKLE D TEXAS THE OVERSIGHT PANEL'S CHAIRMAN MR PICKLE AND SEN JAMES JEFFORDS R VT HAVE INTRODUCED A BILL THAT WOULD REQUIRE COMPANIES WITH UNDERFUNDED PENSION PLANS TO SPEED UP THEIR FUNDING CONTRIBUTIONS AND WOULD BAR ANY FURTHER PENSION RISES IN THOSE PLANS WITHOUT COLLATERAL AIMED AT PAYING FOR THEM 9302030051 930203 POLITICS & POLICY CLINTON'S PLAN FOR CAMPAIGN LOBBYING REFORM ENCOUNTERS RESISTANCE FROM HOUSE DEMOCRATS BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT A PRIVATE MEETING OF HOUSE DEMOCRATS RECENTLY WHITE HOUSE ADVISER PAUL BEGALA LAID OUT PRESIDENT CLINTON'S TOP PRIORITIES INCLUDING CHANGES IN CAMPAIGNFINANCE AND LOBBYING LAWS NEW JERSEY REP ROBERT TORRICELLI WAS QUICK TO RESPOND SEVERAL PARTICIPANTS SAY IF PRESIDENT CLINTON PUSHES FOR DRASTIC CHANGES IN THE CAMPAIGN FINANCE LAW REP TORRICELLI IS QUOTED AS SAYING DEMOCRATS MIGHT LOSE CONTROL OF THE HOUSE THE NEXT QUESTIONER FURTHER UNDERSCORED THE CONGRESSIONAL PREFERENCE FOR BUSINESS AS USUAL BY ASKING HALF JOKINGLY WHETHER MR CLINTON WILL LET CABINET SECRETARIES ATTEND FUNDRAISERS FOR MEMBERS OF CONGRESS AS IS CUSTOMARY THERE WAS LAUGHTER BUT NO ANSWER MR CLINTON SAYS HE WANTS TO CHANGE THE WAY WASHINGTON WORKS IN HIS INAUGURAL ADDRESS HE SAID LET US RESOLVE TO REFORM OUR POLITICS SO THAT POWER AND PRIVILEGE NO LONGER SHOUT DOWN THE VOICE OF THE PEOPLE AND SOON AFTER TAKING UP RESIDENCE IN THE WHITE HOUSE HE MET IN THE OVAL OFFICE WITH TOP STAFFERS AND EMPHASIZED THE IMPORTANCE THAT THEY PRESS AHEAD TO REDUCE THE AMOUNT OF MONEY SPENT IN FEDERAL CAMPAIGNS AND TO INCREASE THE AMOUNT OF INFORMATION LOBBYISTS MUST DISCLOSE ABOUT THEIR CLIENT RELATIONSHIPS BUT WASHINGTON ISN'T EAGER TO CHANGE REP TORRICELLI DENIES MAKING THE REMARKS ATTRIBUTED TO HIM AT THE MEETING OF HOUSE DEMOCRATS DESPITE RECOLLECTIONS TO THE CONTRARY BY SEVERAL IN ATTENDANCE NEVERTHELESS FACED WITH COMPLAINTS FROM RANKANDFILE DEMOCRATS IN THE HOUSE WHITE HOUSE AIDES ARE NOW MOVING CAUTIOUSLY IN PUTTING TOGETHER A PLAN TO OVERHAUL CAMPAIGN FINANCE AND LOBBYING LAWS THERE IS EVEN DISAGREEMENT AMONG WHITE HOUSE ADVISERS ABOUT WHAT THE CHANGES SHOULD BE FURTHER SLOWING PROGRESS THE RESULT MR CLINTON'S PLAN TO MAKE MAJOR CHANGES IN THE CAMPAIGN FINANCE AND LOBBYING LAWS COULD BE DELAYED AND WATERED DOWN ADVOCATES OF CAMPAIGNFINANCE REFORMS WORRY THAT DELAY COULD MEAN DEFEAT THE LONGER YOU LET THIS SLIP THE MORE YOU CREATE THE OPPORTUNITY FOR THE OPPONENTS TO EITHER BLOCK IT OR KILL IT SAYS FRED WERTHEIMER PRESIDENT OF THE CITIZENS' LOBBY COMMON CAUSE LAWMAKERS SAY IT WILL BE NEXT SUMMER OR LATER BEFORE THEY MOVE THE ISSUE ONTO THE FRONT BURNER CALIFORNIA REP VIC FAZIO CHAIRMAN OF THE HOUSE DEMOCRATS' FUNDRAISING COMMITTEE SEES AT LEAST A SIXMONTH PROCESS FOR DEVELOPING A BILL IT'S NOT SOMETHING PEOPLE ARE DEMANDING TOMORROW LIKE JOBS HE SAYS IF WE HAVE TO ERR ON THE SIDE OF TAKING MORE TIME WE OUGHT TO RELUCTANT TO ENGAGE CONGRESS IN AN EARLY FIGHT OVER POLITICAL REFORM THE ADMINISTRATION APPEARS TO BE PUTTING CHANGES IN CAMPAIGN AND LOBBYING LAWS ON A SOMEWHAT SLOWER TRACK THAN OTHER PRIORITIES MR CLINTON'S FIRST SPEECH TO A JOINT SESSION OF CONGRESS FEB 17 IS EXPECTED TO FOCUS PRIMARILY ON ECONOMIC PROBLEMS AND PROPOSED SOLUTIONS AND WHITE HOUSE AIDES SAY THEY AREN'T INTERESTED IN RAMMING THROUGH A POTENTIALLY CONTROVERSIAL POLITICALPROCESS BILL AT A TIME WHEN THEY WILL BE ASKING LEGISLATORS TO CAST SO MANY OTHER TOUGH VOTES FOR DEFICIT REDUCTION THE MESSAGE HAS NOT BEEN THAT WE SHOULDN'T DO IT SAYS ONE SENIOR WHITE HOUSE STAFFER BUT THAT WE SHOULD DO IT SENSITIVELY LAWMAKERS NOTE THAT THE ISSUE HAS BEEN DELEGATED TO WHITE HOUSE STAFFERS WHO THOUGH ABLE ARE MUCH JUNIOR TO THE OFFICIALS WHO HAVE BEEN GIVEN CHARGE OF THE PRESIDENT'S OTHER INITIATIVES CAMPAIGNFINANCE OVERHAUL IS BEING DIRECTED BY MICHAEL WALDMAN AND THE BOLSTERING OF LOBBYING LAWS IS BEING LEAD BY BRUCE REED BOTH ARE 32 YEARS OLD MR REED IS ALSO WORKING ON WELFARE LAW CHANGES ANOTHER BIG ISSUE FOR MR CLINTON OFFICIALLY THE CLINTON TEAM SAYS POLITICALLAW CHANGES ARE A PRIORITY AND ONE THE ADMINISTRATION DOESN'T INTEND TO DELAY MR CLINTON ALREADY HAS ENDORSED A BILL BY SEN CARL LEVIN D MICH THAT WOULD COMBINE AND TOUGHEN THE NOW DIFFUSE AND WEAK LOBBYING DISCLOSURE LAWS AND TALKS WITH CONGRESSIONAL LEADERS HAVE BEGUN ON CAMPAIGNFINANCE CHANGES INCLUDING A MEETING TODAY WITH THE PRESIDENT BUT THERE IS A LONG WAY TO GO DISAGREEMENTS AND PROPOSALS TO DILUTE THE LEGISLATION ARISE AT ALMOST EVERY TURN HOUSE DEMOCRATS ARE ESPECIALLY NERVOUS UP FOR ELECTION EVERY TWO YEARS THEY FEAR THAT MR CLINTON'S PLAN TO LIMIT CAMPAIGN SPENDING BY CANDIDATES AND CONTRIBUTIONS BY POLITICAL ACTION COMMITTEES MAY GIVE THEIR CHALLENGERS TOO MANY ADVANTAGES THE RESULT HAS BEEN WHAT IS APPARENTLY THE FIRST BIG COMPROMISE ON THE ISSUE HOUSE SPEAKER THOMAS FOLEY OF WASHINGTON SAYS CAMPAIGNFINANCE CHANGES THAT WILL BE PROPOSED BY HOUSE DEMOCRATS WON'T TAKE EFFECT UNTIL AFTER THE CONGRESSIONAL ELECTIONS NEXT YEAR TEXAS REP MARTIN FROST AMONG OTHERS FRETS ABOUT PROPOSALS TO CUT OFF SOCALLED SOFT MONEY AS MR CLINTON HAS SAID HE WOULD THESE ARE LARGE CONTRIBUTIONS FROM INDIVIDUALS AND CORPORATIONS THAT BOLSTER STATE POLITICAL PARTIES AND INDIRECTLY HELP CANDIDATES FOR FEDERAL OFFICE SUCH CRITICS OF THE SYSTEM AS MR WERTHEIMER SEE SOFT MONEY AS A LOOPHOLE THAT MUST BE CLOSED IF THERE IS TO BE ANY REAL OVERHAUL BUT EVEN SOME ADVISERS TO MR CLINTON PARTICULARLY DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM SAY SOFT MONEY MUST CONTINUE TO FLOW AT LEAST IN SOME FORM TO KEEP THE DEMOCRATIC PARTY HUMMING AND THEY ARGUE TO ALLOW MORE CITIZENS TO PARTICIPATE IN PARTY FUNCTIONS ANOTHER CONTENTIOUS MATTER IN CAMPAIGNFINANCE PROPOSALS IS WHETHER THE PUBLIC SHOULD BE ASKED TO PAY FOR CAMPAIGNS MANY LAWMAKERS RESIST PUBLIC FINANCING MOST POLLS SHOW THAT VOTERS DON'T LIKE THE IDEA AS A WAY AROUND THE PROBLEM MR CLINTON IS CONSIDERING TAPPING PROCEEDS FROM HIS PROPOSED REVOCATION OF THE TAX DEDUCTION FOR CORPORATE LOBBYING EXPENSES WORTH ABOUT 100 MILLION A YEAR THE LOBBYING REGISTRATION CHANGES ARE FAR LESS CONTROVERSIAL MR CLINTON AND LAWMAKERS AGREE THAT LOBBYISTS SHOULD DISCLOSE MORE ABOUT WHAT THEY DO AND WHO PAYS THEIR FEES BUT EFFORTS TO CLOSE THE REVOLVING DOOR BETWEEN CONGRESS AND THE LOBBYING INDUSTRY IS RUNNING INTO OPPOSITION A PROPOSAL BY SEN DAVID BOREN D OKLA TO APPLY THE FIVEYEAR LOBBYING RESTRICTIONS OF CLINTON OFFICIALS TO MEMBERS OF CONGRESS AND TOP CONGRESSIONAL AIDES IS BEING RESISTED BY OTHER LAWMAKERS AND SOME IN THE ADMINISTRATION INCLUDING THE WHITE HOUSE'S TOP LOBBYIST HOWARD PASTER MR CLINTON HAS BARRED TOP OFFICIALS IN HIS ADMINISTRATION FROM LOBBYING THEIR AGENCIES FOR FIVE YEARS AFTER THEY LEAVE OFFICE SUCH DISPUTES WITHIN THE DEMOCRATIC PARTY ARE ONLY PART OF THE PROBLEM REPUBLICANS HAVE LONG HELD A DIFFERENT VIEW OF WHAT CONSTITUTES REFORM OF CAMPAIGN FINANCING AND THOSE DIFFERENCES CONTINUE MR WERTHEIMER SUGGESTS THAT EVEN IF DEMOCRATS CAN AGREE ON A COMPROMISE PLAN REPUBLICANS MAY TRY TO STOP IT IN THE SENATE WITH A FILIBUSTER THAT WOULD BE DIFFICULT TO BREAK STILL CLINTON OFFICIALS ARE UPBEAT ABOUT THE PROSPECT FOR CHANGING THE SYSTEM EVENTUALLY NOBODY IS SAYING DON'T DO POLITICAL REFORM SAYS STANLEY GREENBERG MR CLINTON'S POLLSTER BUT HE ADDS THERE IS A QUESTION OF TIMING HERE ARE PRESIDENT CLINTON'S POLITICAL REFORM PROPOSALS LIMIT SOFT MONEY CONTRIBUTIONS THAT NOW LET COMPANIES OR INDIVIDUALS GIVE UNRESTRICTED AMOUNTS TO POLITICAL PARTIES REDUCE THE COST OF TV TIME TO PROMOTE MORE DISCUSSION OF THE ISSUES END TAX DEDUCTIONS FOR LOBBYING EXPANSES END THE LAWYERS' LOOPHOLE THAT LETS LAWYERLOBBYISTS AVOID DISCLOSING THEIR ACTIVITIES ON BEHALF OF FOREIGNERS REQUIRE LOBBYISTS WHO APPEAR BEFORE CONGRESSIONAL COMMITTEES TO DISCLOSE THE CAMPAIGN CONTRIBUTIONS THEY HAVE MADE TO THE MEMBERS OF THOSE COMMITTEES 9302030050 930203 BUSINESS BRIEF CASH AMERICA INTERNATIONAL INC COMPANY'S 4THPERIOD NET ROSE BY 34 TO 43 MILLION BOLSTERED BY STRONG CHRISTMAS SALES CASH AMERICA INTERNATIONAL INC FORT WORTH TEXAS SAID FOURTHQUARTER EARNINGS JUMPED 34 THE LARGE PAWN SHOP OPERATOR ALSO SIGNED A LETTER OF INTENT TO BUY EXPRESS CASH INTERNATIONAL CORP A RIVAL 18STORE TEXAS COMPANY FOR 75 MILLION IN STOCK CASH AMERICA SAID IT EARNED 43 MILLION IN THE FOURTH QUARTER PERSHARE EARNINGS WERE 15 CENTS A 15 INCREASE FROM 13 CENTS FOR THE SAME PERIOD OF 1991 SAMESTORE SALES WERE UP 20 IN DECEMBER CHAIRMAN JACK R DAUGHERTY SAID FOR 1992 CASH AMERICA HAD EARNINGS OF 13 MILLION OR 45 CENTS A SHARE COMPARED WITH 109 MILLION FOR 1991 THE LETTER OF INTENT TO ACQUIRE EXPRESS CASH IS SUBJECT TO EXECUTION OF A DEFINITIVE AGREEMENT AND APPROVAL BY EXPRESS CASH SHAREHOLDERS THE LETTER ALSO CALLS FOR CASH AMERICA TO ASSUME 58 MILLION IN EXPRESS CASH LIABILITIES AT THE END OF THE YEAR CASH AMERICA OPERATED 249 PAWN SHOPS IN EIGHT STATES AND THE UNITED KINGDOM 9302030049 930203 BUSINESS BRIEF CHIPCOM CORP FOURTHPERIOD NET ROSE 55 ON SALES OF SWITCHING HUBS REVENUE SOARED 81 IN THE PERIOD TO 278 MILLION FROM 153 MILLION PERSHARE NET INCOME WAS 27 CENTS A 35 GAIN FROM THE 20 CENTS REPORTED A YEAR EARLIER ON FEWER SHARES OUTSTANDING THE SOUTHBOROUGH MASS COMPANY SAID THE BIGGEST FACTOR IN THE GAINS WAS A 143 INCREASE IN SALES OF CHIPCOM'S ONLINE INTELLIGENT SWITCHING HUBS THE HUBS WHICH SORT AND ROUTE DIGITAL DATA IN OFFICE NETWORKS ARE A MAJOR COMPONENT OF THE NETWORKING TREND THAT IS SWEEPING THE COMPUTER INDUSTRY FOR THE YEAR CHIPCOM HAD NET INCOME OF 85 MILLION OR 94 CENTS A SHARE ON REVENUE OF 873 MILLION THAT COMPARES WITH NET OF 4 MILLION OR 55 CENTS A SHARE ON REVENUE OF 48 MILLION IN 1991 GROWTH IN NET INCOME IN THE LATEST QUARTER DIDN'T KEEP UP WITH REVENUE GAINS SAID CHIEF FINANCIAL OFFICER ROBERT P BADAVAS BECAUSE OF HIGHER ADMINISTRATIVE AND SALES COSTS ASSUMED WHEN CHIPCOM TOOK OVER CHIPCOM EUROPE IN THE THIRD QUARTER 9302030048 930203 INTERNATIONAL BRIEF ING C OLIVETTI & CO CHAIRMAN SAYS '92 SALES FELL SEES WEAKER ECONOMY IN '93 SALES OF ITALIAN COMPUTER GROUP ING C OLIVETTI & CO FELL 68 TO 8025 TRILLION LIRE 53 BILLION IN 1992 FROM 8607 TRILLION LIRE IN 1991 OLIVETTI CHAIRMAN CARLO DE BENEDETTI SAID MR DE BENEDETTI HOLDING A NEWS CONFERENCE DURING THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND REFUSED TO COMMENT ON OLIVETTI'S BOTTOM LINE FOR 1992 HOWEVER HE RECONFIRMED THE COMPANY'S ESTIMATE OF AN OPERATING LOSS OF BETWEEN 300 BILLION LIRE 198 MILLION AND 350 BILLION LIRE ANALYSTS EXPECT A NET LOSS OF 600 BILLION LIRE TO 700 BILLION LIRE WIDENING FROM THE 1991 LOSS OF 460 BILLION LIRE MR DE BENEDETTI ALSO EXPRESSED PESSIMISM ABOUT THE GENERAL EUROPEAN BUSINESS OUTLOOK PREDICTING THAT THE CONTINENT IS HEADING INTO THE CENTER OF A RECESSION 1993 WILL BE WORSE THAN 1992 FOR THE ECONOMY AND FOR THE EARNINGS OUTLOOK HE URGED EUROPEAN LEADERS TO FORGO THEIR FOCUS ON SAVING THE EUROPEAN MONETARY SYSTEM AND INSTEAD LOWER INTEREST RATES TO HELP AVOID FURTHER SLOWDOWN 9302030047 930203 POLITICS & POLICY MARGARET RICHARDSON SAID TO BE CHOICE OF CLINTON FOR COMMISSIONER OF THE IRS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NOMINATE WASHINGTON LAWYER MARGARET RICHARDSON TO BE THE COMMISSIONER OF THE INTERNAL REVENUE SERVICE PEOPLE CLOSE TO THE PROCESS ALSO SAID A NEW YORK ATTORNEY HAD ACCEPTED THE JOB OF ASSISTANT TREASURY SECRETARY FOR TAX POLICY BUT THEY DIDN'T DISCLOSE THE NAME OF THAT PERSON THE ADMINISTRATION HAD BEEN HAVING TROUBLE FILLING THE IMPORTANT TREASURY POST IN PART BECAUSE NEW LOBBYING RULES WOULD PRECLUDE THE ASSISTANT SECRETARY FROM APPEARING BEFORE THE IRS FOR FIVE YEARS AFTER LEAVING THE GOVERNMENT AND RETURNING TO PRIVATE PRACTICE FOR A TAX LAWYER SUCH RESTRICTIONS COULD BE RUINOUS FORMAL ANNOUNCEMENTS ABOUT THE TWO TOP TAX JOBS COULD COME IN THE NEXT DAY OR SO JACK DEVORE THE TREASURY SPOKESMAN DECLINED TO COMMENT MS RICHARDSON A PARTNER AT SUTHERLAND ASBILL & BRENNAN ALSO REFUSED TO COMMENT SHE WOULD BE ONLY THE SECOND WOMAN TO HOLD THE COMMISSIONER'S POST FOLLOWING SHIRLEY PETERSON WHO HAD THE JOB UNDER PRESIDENT BUSH AT ONE TIME MS RICHARDSON WORKED AT THE IRS AS THE TOP ADMINISTRATIVE OFFICIAL IN THE CHIEF COUNSEL'S OFFICE THE 49YEAROLD MS RICHARDSON WHO GOES BY THE NICKNAME PEGGY IS GOOD FRIENDS WITH HILLARY RODHAM CLINTON AND WORKED FOR THE HER DURING THE CAMPAIGN AS A CONGRESSIONAL AND COMMUNITY LIAISON IN BEING SELECTED FOR THE JOB SHE IS SAID TO HAVE BEAT OUT SAMUEL THOMPSON A UNIVERSITY OF CALIFORNIA AT LOS ANGELES LAW PROFESSOR AND FORMER TREASURY OFFICIAL ASSUMING THEY ARE CONFIRMED BY THE SENATE MS RICHARDSON AND THE NEW ASSISTANT SECRETARY WILL WORK TOGETHER IN DEVELOPING MYRIAD TAX REGULATIONS IN ADDITION THE ASSISTANT SECRETARY WILL HELP FORMULATE THE PRESIDENT'S ECONOMIC AGENDA AND TYPICALLY SERVES AS THE ADMINISTRATION'S REPRESENTATIVE BOTH IN OPEN HEARINGS AND BEHIND CLOSED DOORS WHEN THE CONGRESSIONAL COMMITTEES SHAPE TAX LEGISLATION THE ASSISTANT SECRETARY ALSO IS RESPONSIBLE FOR NEGOTIATING AND IMPLEMENTING TAX TREATIES WITH FOREIGN GOVERNMENTS THE IRS COMMISSIONER FOR HER PART WILL OVERSEE A TAXCOLLECTION APPARATUS WITH 119000 EMPLOYEES IN FACILITIES ACROSS THE US A NUMBER OF TOUGH ISSUES AWAIT MS RICHARDSON AT THE AGENCY THE GENERAL ACCOUNTING OFFICE NOTED IN A RECENT REPORT FOR EXAMPLE THAT ALTHOUGH THE IRS HAS TAKEN STEPS TO ALLEVIATE AN IMPEDING COMPUTER CAPACITY PROBLEM MUCH MORE WORK REMAINS TO BE DONE TO ENSURE THAT THIS PROJECT IS SUCCESSFULLY IMPLEMENTED FURTHERMORE THE GAO SAID THE IRS STILL NEEDS TO WORK ON COLLECTING THE 30 BILLION IN DELINQUENT TAXES IT HAS DEEMED RETRIEVABLE AND ON REDUCING THE 114 BILLION TAX GAP THE TOTAL DIFFERENCE BETWEEN WHAT TAXPAYERS OWE AND WHAT THEY VOLUNTARILY PAY TAX EXPERTS GENERALLY AGREE THAT UNDER MS PETERSON THE IRS MADE PROGRESS IN FOSTERING COMPLIANCE WITH THE TAX LAWS BY TREATING TAXPAYERS AS CUSTOMERS AND OFFERING TO COMPROMISE WITH THEM AS OPPOSED TO PLAYING HARDBALL IF WE DON'T CHANGE OUR SYSTEM OF COLLECTING TAXES IT WILL BREAK DOWN MS PETERSON WARNED IN A SPEECH TO THE NEW YORK BAR ASSOCIATION JUST LAST WEEK OUR TRADITIONAL APPROACH CANNOT SUSTAIN AN ACCEPTABLE LEVEL OF COMPLIANCE SEPARATELY PRESIDENT CLINTON CONTINUED HIS SEARCH FOR AN ATTORNEY GENERAL AND APPEARED TO BE FOCUSING HIS ATTENTION ON WOMEN CANDIDATES HE HAS INTERVIEWED KIMBA WOOD THE FEDERAL JUDGE WHO HEARD THE MICHAEL MILKEN SECURITIESFRAUD CASE HE ALSO IS SAID TO BE CONSIDERING BOSTON FEDERAL JUDGE RYA ZOBEL LOS ANGELES LAWYER ANDREA ORDIN AND MINNESOTA FEDERAL JUDGE DIANA MURPHY CLINTON AIDES SAID THE PRESIDENT HASN'T RULED OUT APPOINTING A MAN TO THE POST SOME PEOPLE WHO ADVISE MR CLINTON HAVE SUGGESTED FORMER VICE PRESIDENT WALTER MONDALE BUT MR CLINTON WHO WAS INTENT ON CHOOSING A WOMAN FOR ATTORNEY GENERAL WHEN HE NOMINATED ZOE BAIRD APPARENTLY WOULD LIKE TO TRY AGAIN MS BAIRD WITHDREW HER NAME FROM CONSIDERATION AFTER REVEALING THAT SHE HIRED ILLEGAL IMMIGRANTS AND DIDN'T PAY THEIR SOCIAL SECURITY TAXES 9302030046 930203 REVIEW & OUTLOOK EDITORIAL ASIDES ROAD MAP TO TROUBLE THE CENTER FOR THE STUDY OF THE STATES HAS RELEASED A BREAKDOWN OF TAX CHANGES FOR 1992 IT CONFIRMS SEVERAL THINGS WE'VE NOTED KANSAS HAD THE BIGGEST PROPORTIONAL RISE 126 OTHER BIG INCREASES CAME IN IOWA 75 MISSISSIPPI 67 MARYLAND 61 TENNESSEE 58 AND MONTANA 51 THE ONLY SUBSTANTIVE DECLINES WERE IN NEW JERSEY 52 AND PENNSYLVANIA 37 THE CENTER FORECASTS BIGGER HIKES OVERALL IN 1993 9302030045 930203 BUSINESS BRIEF OLSTEN CORP FISCAL 4THPERIOD NET GREW 52 HEALTH SERVICES CITED CITING INCREASED DEMAND FOR ITS HEALTHCARE SERVICES OLSTEN CORP REPORTED A 52 INCREASE IN NET INCOME FOR THE FISCAL FOURTH QUARTER THE COMPANY ALSO DECLARED A 3FOR2 STOCK SPLIT EFFECTIVE FEB 12 FOR SHAREHOLDERS OF RECORD FEB 2 AND A 125 INCREASE IN THE DIVIDEND AFTER THE SPLIT PAYABLE FEB 23 FOR THE QUARTER ENDED JAN 3 NET INCOME WAS 67 MILLION OR 26 CENTS A SHARE COMPARED WITH 44 MILLION OR 18 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 26 TO 2789 MILLION PERSHARE FIGURES REFLECT THE STOCK SPLIT OLSTEN WHICH IS A WESTBURY NY PROVIDER OF TEMPORARY AND HEALTHCARE PERSONNEL SERVICES SAID DEMAND FOR THOSE SERVICES WAS STRONG IN THE FOURTH QUARTER AND STRONG REVENUE GAINS AT THE COMPANY'S OFFICE SERVICES DIVISION ALONG WITH CONTINUED EXPENSE CONTROLS CONTRIBUTED TO QUARTERLY RESULTS FOR THE YEAR NET INCOME ROSE 45 TO 211 MILLION OR 87 CENTS A SHARE FROM 146 MILLION OR 62 CENTS A SHARE REVENUE INCREASED 17 TO 9874 MILLION 9302030044 930203 BUSINESS BRIEF WELLS FARGO & CO ANNENBERG RAISES HIS STAKE IN BANK COMPANY TO 654 PUBLISHING TYCOON WALTER H ANNENBERG RECENTLY RAISED HIS STAKE IN WELLS FARGO & CO TO 654 SIGNALING HIS CONFIDENCE THAT THE WORST IS OVER FOR THE CALIFORNIA REAL ESTATE LENDER MR ANNENBERG DISCLOSED IN AUGUST THAT HE HAD ACQUIRED A 53 STAKE IN THE SAN FRANCISCO BANK HOLDING COMPANY FOR INVESTMENT PURPOSES IN A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR ANNENBERG AND HIS AFFILIATES DIDN'T PROVIDE FURTHER EXPLANATION FOR THE PURCHASE MR ANNENBERG IS A FRIEND OF OMAHA NEB INVESTOR WARREN BUFFETT WHO OWNS ALMOST 11 OF WELLS FARGO IN THE SEC FILING MR ANNENBERG SAID HE HAD PURCHASED 502000 COMMON SHARES OF WELLS FARGO BETWEEN JAN 15 AND JAN 25 AT PRICES FROM 7450 TO 99 A SHARE THE STOCK WAS PURCHASED BY MR ANNENBERG FAMILY MEMBERS A TRUST AND THE ANNENBERG FOUNDATION MR ANNENBERG NOW HOLDS 3610000 COMMON SHARES OF WELLS FARGO UP FROM 2790000 9302030043 930203 BUSINESS BRIEF GREATER NEW YORK SAVINGS BANK BANK POSTS 4THQUARTER NET AFTER A YEAREARLIER DEFICIT GREATER NEW YORK SAVINGS BANK REPORTED FOURTHQUARTER EARNINGS OF 490000 COMPARED WITH A YEAREARLIER LOSS REFLECTING A REDUCTION IN NONPERFORMING ASSETS AND A LOWER PROVISION FOR LOAN AND REAL ESTATE LOSSES THE YEARAGO LOSS WAS 43 MILLION OR 38 CENTS A SHARE THE NEW YORK BANK REPORTED NO PERSHARE EARNINGS IN THE 1992 QUARTER AFTER PAYMENT OF PREFERRED STOCK DIVIDENDS THE BANK SAID IT HAD RAISED ITS TIER 1 CAPITAL RATIO TO 514 FROM 442 AND ITS RISKBASED CAPITAL RATIO TO 10 FROM 849 A SPOKESMAN SAID THE RISKBASED RATIO IS WELL ABOVE THE REGULATORY MINIMUM OF 8 FOR THE YEAR NET WAS 137 MILLION OR 92 CENTS A SHARE COMPARED WITH A LOSS OF 579 MILLION OR 472 A SHARE IN 1991 THE 1992 RESULTS INCLUDED 241 MILLION IN NET GAINS ON SALE OF CERTAIN ASSETS NONPERFORMING ASSETS FELL 20 TO 2458 MILLION AT DEC 31 FROM 3068 MILLION AT THE END OF 1991 PROVISIONS FOR LOAN AND REAL ESTATE LOSSES WERE 33 MILLION FOR 1992 COMPARED WITH 675 MILLION FOR 1991 9302030042 930203 BUSINESS BRIEF TELUS CORP FIRM TO ENTER INTO VENTURE WITH CUC BROADCASTING TELUS CORP SAID IT PLANS TO ENTER INTO A 5050 JOINT VENTURE WITH CABLE CONCERN CUC BROADCASTING LTD TO OPERATE A CABLE/TELEPHONE BUSINESS IN BRITAIN TELUS AN EDMONTON ALBERTA COMPANY THAT OPERATES THE TELEPHONE SYSTEM FOR MOST OF THE PROVINCE OF ALBERTA SAID IT PLANS TO INVEST ABOUT 126 MILLION CANADIAN DOLLARS US997 MILLION IN THE VENTURE OVER THE NEXT FIVE YEARS THE PARTNERSHIP PLANS TO OPERATE IN SEVERAL AREAS OF LONDON A SYSTEM THAT WOULD PROVIDE BOTH ENTERTAINMENT AND TELEPHONE SERVICES OVER THE SAME CABLE NETWORK A TELUS SPOKESMAN SAID THAT CLOSELY HELD CUC IN TORONTO ALREADY HAS CABLE OPERATIONS IN BRITAIN HE SAID TELUS WILL CONTRIBUTE ALL NEW FINANCING TO THE VENTURE UNTIL IT MATCHES CUC'S EXISTING INVESTMENT AFTER WHICH THE TWO COMPANIES WILL SPLIT COSTS EQUALLY TELUS SAID THE TWO COMPANIES EXPECT TO FINALIZE A FORMAL PARTNERSHIP AGREEMENT BY SPRING 9302030041 930203 BUSINESS BRIEF H&H OIL TOOL CO RECYCLING PLANT WILL CLOSE SPARKING 4THPERIOD CHARGE H&H OIL TOOL CO SAID IT PLANS TO SHUT ITS ENHANCED OIL RECYCLING PLANT RESULTING IN A PRETAX CHARGE AGAINST FOURTHQUARTER EARNINGS OF 11 MILLION OR 32 CENTS A SHARE OPERATING RESULTS IMPROVED SIGNIFICANTLY COMPARED WITH THE 1991 FOURTH QUARTER THE OILTOOL RENTAL COMPANY SAID IN THE YEAREARLIER QUARTER H&H REPORTED A NET LOSS OF 655000 OR 20 CENTS A SHARE BUT OPERATING PROFIT IN THE LATEST QUARTER WASN'T SUFFICIENT TO OFFSET A NET LOSS REPORTED FOR THE NINE MONTHS SAID ROBERT K FOOTE VICE PRESIDENTFINANCE WE WILL STILL END THE YEAR WITH A LOSS HE SAID H&H SAID ITS ENHANCED OIL RECYCLING PLANT IN SANTA PAULA CALIF SEPARATES CRUDE OILCONTAMINATED RESIDUES INTO RECYCLABLE ENVIRONMENTALLY SAFE COMPONENTS BUT TECHNICAL PROBLEMS HAVE PLAGUED THE PLANT SINCE IT BEGAN OPERATIONS IN MARCH H&H SAID ITS EFFORTS TO RESOLVE THE PROBLEMS HAVE FAILED THE COMPANY SAID IT MAY EVENTUALLY PURSUE FINANCIAL AND TECHNICAL ASSISTANCE FROM OUTSIDE PARTIES BUT HAS NO IMMEDIATE PLANS TO DO SO 9302030040 930203 WHAT'S NEWS WORLDWIDE CLINTON VOWED TO GIVE STATES FREEDOM TO EXPERIMENT WITH WELFARE REFORM IN A SPEECH TO GOVERNORS THE PRESIDENT SAID NO ONE LIKES THE WELFARE SYSTEM AS IT CURRENTLY EXISTS AND HE ANNOUNCED PLANS TO FORM A WHITE HOUSE GROUP TO WORK WITH STATES ON OVERHAULING THE SYSTEM CLINTON STRESSED THERE MUST BE A TIME BEYOND WHICH PEOPLE DON'T DRAW A CHECK FOR DOING NOTHING WHEN THEY CAN DO SOMETHING BUT HE BROKE LITTLE NEW GROUND AND LARGELY REPEATED CAMPAIGN PROMISES AIDES ACKNOWLEDGED THAT KEY QUESTIONS WERE UNRESOLVED INCLUDING WHAT IF ANY SANCTIONS MIGHT BE IMPOSED ON WELFARE RECIPIENTS WHO REFUSED TO WORK AND WHO BESIDES THE DISABLED WOULD BE EXEMPT FROM THE WORK REQUIREMENTS EXILED PALESTINIANS IN LEBANON REJECTED ISRAEL'S OFFER TO IMMEDIATELY REPATRIATE 100 DEPORTEES AND TO TAKE BACK ANOTHER 300 MEN WITHIN A YEAR LEAVING MIDEAST TALKS IN JEOPARDY THE PALESTINIANS VOTED ON THE OFFER AT A TENT CAMP IN LEBANON WHERE THEY HAVE LIVED SINCE BEING EJECTED DEC 17 THE US AND ISRAEL UNVEILED THE OFFER MONDAY A HOUSE HEALTH PANEL WAS TOLD THAT A NATIONAL HEALTHINSURANCE SYSTEM FINANCED AND OPERATED BY THE FEDERAL GOVERNMENT MAY HAVE THE BEST CHANCE OF CONTROLLING COSTS THE DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE ALSO GAVE HIS PROGNOSIS FOR GOVERNMENTIMPOSED LIMITS ON EXPENDITURES SENATE REPUBLICANS BACKED AWAY FROM A MOVE TO WRITE PERMANENTLY INTO LAW THE BAN ON GAYS IN THE MILITARY BUT STILL PLANNED A LEGISLATIVE CHALLENGE ON THE ISSUE SEN SIMPSON SAID AN AMENDMENT CODIFYING THE BAN DIDN'T SEEM TO BE THE BEST COURSE LAST WEEK THE GOP HAD PROMISED TO ATTACH SUCH AN AMENDMENT TO THE FAMILY LEAVE BILL THE ARMY NAVY AND AIR FORCE ORDERED RECRUITERS TO STOP ASKING APPLICANTS THEIR SEXUAL STATUS OFFICIALS SAID BUT MARINE RECRUITERS ARE CONTINUING TO ASK THE QUESTION WHILE WAITING FOR DEFENSE SECRETARY ASPIN TO ISSUE REGULATIONS IMPLEMENTING CLINTON'S INTERIM POLICY CHANGES WASHINGTON HAS GRANTED A VISA TO BOSNIAN SERB LEADER KARADZIC LABELED A WAR CRIMINAL BY THE US SO THAT HE CAN TAKE PART IN TALKS AT THE UN THE STATE DEPARTMENT SAID KARADZIC IS DUE IN NEW YORK TODAY IN BOSNIA A UN TRANSLATOR WAS KILLED AND A DANISH OFFICIAL WAS WOUNDED WHEN THEIR AID CONVOY WAS SHELLED SOUTH AFRICAN OFFICIALS DECLARED JOHANNESBURG AN EMERGENCY AREA GIVING POLICE SPECIAL SEARCH AND ARREST POWERS AFTER TWO PEOPLE DIED IN VIOLENT DEMONSTRATIONS BY BLACK TAXI DRIVERS THE AFRICAN NATIONAL CONGRESS CHARGED THE GOVERNMENT WAS TRYING TO DEFLECT ATTENTION FROM DRIVERS' ALLEGATIONS OF POLICE HARASSMENT A FEDERAL JUDGE ORDERED GOVERNMENT PROSECUTORS TO EXPLAIN ALLEGED NEWS LEAKS REGARDING A GRAND JURY INVESTIGATION OF HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN ROSTENKOWSKI THE JUDGE SAID ATTORNEYS FOR THE DEMOCRATIC CONGRESSMAN HAD SUCCESSFULLY ESTABLISHED A PRELIMINARY CASE OF ALLEGED MISCONDUCT CLINTON'S NOMINEE FOR CIA CHIEF SAID HE PLANS TO LAUNCH A THOROUGH REVIEW TO DETERMINE WHETHER THE INTELLIGENCE COMMUNITY CAN BEGIN SHARING DATA WITH US FIRMS R JAMES WOOLSEY ACKNOWLEDGED THAT THE SUBJECT IS FRAUGHT WITH COMPLEXITIES A JUDGE IN LOS ANGELES REJECTED A BID TO DELAY THE FEDERAL TRIAL OF FOUR WHITE POLICEMEN CHARGED IN THE BEATING OF BLACK MOTORIST RODNEY KING CLEARING THE WAY FOR JURY SELECTION TODAY A LAWYER FOR ONE DEFENDANT HAD SAID FEARS OF NEW RIOTS WOULD PREVENT A FAIR TRIAL THE FOUR WERE ACQUITTED IN APRIL OF MOST STATE CHARGES SPARKING RIOTING COLOMBIA NEARLY DOUBLED THE BOUNTY OFFERED FOR FUGITIVE DRUG TRAFFICKER ESCOBAR TO 67 MILLION THE INCREASE IN THE AWARD CAME THREE DAYS AFTER A CAR BOMB EXPLODED IN BOGOTA KILLING 21 PEOPLE PRESIDENT GAVIRIA BLAMED ESCOBAR FOR THE ATTACK GUERRILLAS STEPPED UP A TWOWEEKOLD BATTLE FOR AFGHANISTAN'S CAPITAL FIRING SCORES OF ROCKETS THAT KILLED AT LEAST 72 PEOPLE AND WOUNDED MORE THAN 80 ACCORDING TO STATERUN RADIO IN KABUL GREECE ANNOUNCED THAT POLICE WILL CONDUCT A NATIONWIDE SWEEP TO HUNT DOWN AND DEPORT HUNDREDS OF THOUSANDS OF ILLEGAL IMMIGRANTS WHO ARE INCREASINGLY BLAMED FOR UNEMPLOYMENT AND CRIME 9302030039 930203 BUSINESS BRIEF CIRCLE K CORP SHEIK DROPS OUT OF GROUP SEEKING TO ACQUIRE COMPANY CIRCLE K CORP SAID ANOTHER INVESTOR DROPPED OUT OF CK ACQUISITIONS CORP AN INTERNATIONAL INVESTMENT GROUP THAT HAS OFFERED TO ACQUIRE AND REORGANIZE CIRCLE K FOR 3995 MILLION THE PHOENIX ARIZ CONVENIENCESTORE CONCERN SAID INVESTCORP A BAHRAIN INVESTMENT COMPANY THAT IS NOW APPARENTLY THE ONLY REMAINING MEMBER OF CK ACQUISITIONS DELIVERED A LETTER SAYING IT HAS THE FINANCIAL RESOURCES TO COMPLETE THE ACQUISITION ON ITS OWN THE LETTER FOLLOWED WORD THAT SHEIK ALI ALKHALIFA ALSABAH FORMER FINANCE AND OIL MINISTER OF KUWAIT HAD DECIDED TO WITHDRAW AS A PROSPECTIVE INVESTOR IN CK ACQUISITIONS LAST MONTH CIRCLE K BONDHOLDERS SOUGHT ADDITIONAL DISCLOSURES ABOUT THE SHEIK BECAUSE OF CONCERN THAT THE SHEIK'S ASSETS MIGHT BE FROZEN OR SEIZED BY THE KUWAITI GOVERNMENT AN INVESTCORP SPOKESMAN DECLINED TO COMMENT ON THE REASONS FOR MR KHALIFA'S WITHDRAWAL CIRCLE K FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION MAY 15 1990 9302030038 930203 BUSINESS BRIEF NAC RE CORP FOURTHQUARTER NET FELL 84 DUE TO HURRICANE CHARGES NAC RE CORP POSTED A STEEP DECLINE IN FOURTHQUARTER EARNINGS LARGELY DUE TO HURRICANES ANDREW AND INIKI THE PROPERTY CASUALTY REINSURANCE COMPANY SAID NET IN THE QUARTER FELL 84 TO 16 MILLION OR NINE CENTS A SHARE FROM 101 MILLION OR 64 CENTS A SHARE A YEAR EARLIER HURRICANERELATED CHARGES REDUCED OPERATING EARNINGS PER SHARE BY 45 CENTS IN THE QUARTER NET PREMIUMS WRITTEN ROSE 16 IN THE QUARTER TO 716 MILLION WHILE REVENUE WAS FLAT AT 803 MILLION FOR THE YEAR THE GREENWICH CONN COMPANY SAID NET FELL 35 TO 224 MILLION OR 123 A SHARE FROM 348 MILLION OR 220 A SHARE THE HURRICANE LOSSES REDUCED OPERATING EARNINGS BY 168 A SHARE WHILE ALL MAJOR CATASTROPHIC EVENTS REDUCED PERSHARE OPERATING PROFIT BY 177 IN THE LATEST YEAR COMPARED WITH 10 CENTS IN 1991 BUT 1992 NET INCLUDED A CUMULATIVE BENEFIT OF 121 MILLION OR 66 CENTS A SHARE FROM ADOPTING A CHANGE IN ACCOUNTING FOR INCOME TAXES PERSHARE EARNINGS IN 1992 REFLECT A 24 MILLION INCREASE IN SHARES OUTSTANDING IN JANUARY FROM CONVERSION OF SUBORDINATED DEBENTURES NET PREMIUMS WRITTEN ROSE 15 IN 1992 TO 268 MILLION WHILE REVENUE ROSE 11 TO 3252 MILLION 9302030037 930203 BUSINESS BRIEF MAGMA COPPER CO COMPANY REPORTS IT EARNED 102 MILLION IN 4TH PERIOD MAGMA COPPER CO POSTED FOURTHQUARTER NET INCOME OF 102 MILLION OR 21 CENTS A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 1366 MILLION OR 456 A SHARE THE YEARAGO RESULTS INCLUDED PRETAX RESTRUCTURING EXPENSES OF 2032 MILLION SALES DECLINED SLIGHTLY TO 1974 MILLION FROM 1977 MILLION THE COMPANY ATTRIBUTED ITS IMPROVED PERFORMANCE TO A 7 REDUCTION IN OPERATION COSTS AN 11 INCREASE IN PRODUCTIVITY AND A 9 INCREASE IN COPPER PRODUCTION IT ALSO CITED EMPLOYEE INVOLVEMENT AND GAINSHARING PROGRAMS NET CASH OPERATING COSTS DECLINED TO AN AVERAGE OF 66 CENTS A POUND FOR 1992 FROM 71 CENTS A POUND IN 1991 COPPER PRICES DECLINED TO 97 CENTS A POUND FROM 98 CENTS THE TUCSON ARIZ COPPER PRODUCER ALSO REPORTED NET FOR THE YEAR OF 553 MILLION OR 119 A SHARE COMPARED WITH A 1991 LOSS OF 1205 MILLION OR 422 A SHARE SALES ROSE TO 8195 MILLION FROM 7248 MILLION 9302030036 930203 FOREIGN EXCHANGE DOLLAR ADVANCES EXCEPT AGAINST YEN ON MORE SIGNS ECONOMY IS ACCELERATING BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MORE SIGNS THAT THE US ECONOMY IS PICKING UP SPEED PULLED THE DOLLAR HIGHER YESTERDAY EXCEPT AGAINST THE YEN WITH EUROPEAN ECONOMIES STILL STRUGGLING THE US AND JAPAN CONTINUE TO DRAW INVESTORS DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16405 MARKS UP FROM 16358 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12465 YEN OFF FROM 12505 YEN STERLING WAS TRADING AT 14440 DOWN FROM 14595 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16365 MARKS AND AT 12425 YEN I THINK IT'S A PROTEST AGAINST EUROPE SAID JOHN LYMAN A SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK THERE'S A FAIR AMOUNT OF MONEY LEAVING EUROPE THE GERMAN CENTRAL BANK'S HARD LINE ON INTEREST RATES IN THE FACE OF SHARPENING ECONOMIC PAIN IN GERMANY IS RAISING FEARS THAT THE RECESSION THERE COULD BE DRAWN OUT DEALERS SAID AS A RESULT INVESTORS ARE SHIFTING TO THE DOLLAR AND THE YEN DEALERS ADDED THE JAPANESE CURRENCY CLIMBED AGAINST THE MARK YESTERDAY LATE IN NEW YORK THE MARK WAS QUOTED AT 7598 YEN OFF FROM 7645 YEN MONDAY ALTHOUGH JAPAN'S ECONOMY STILL IS WEAK PARTICIPANTS EXPECT THE BANK OF JAPAN TO CUT RATES SOON TO HELP REVIVE IT MEANWHILE A SPATE OF US ECONOMIC REPORTS DURING THE PAST FEW DAYS THAT HAVE OUTSTRIPPED EXPECTATIONS IS BOOSTING SENTIMENT TOWARD THE DOLLAR DEALERS SAID YESTERDAY THE COMMERCE DEPARTMENT SAID ITS INDEX OF LEADING INDICATORS SURGED 19 IN DECEMBER THE BIGGEST JUMP SINCE APRIL 1983 ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT HAD BEEN EXPECTING ON AVERAGE A RISE OF 16 IN ADDITION NEWHOME SALES IN DECEMBER CLIMBED 63 THE DEPARTMENT SAID IN A SEPARATE REPORT A REVISION ERASED MOST OF NOVEMBER'S ORIGINALLY REPORTED 83 DECLINE LEAVING THE MONTH WITH A DROP OF 02 THEY WERE A GOOD FOLLOWON TO THE NUMBERS WE HAD YESTERDAY SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK MONDAY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX OF BUSINESS CONFIDENCE FOR JANUARY JUMPED BEYOND MARKET EXPECTATIONS LIFTING THE DOLLAR IT MIGHT BE NOW THAT PEOPLE ARE STARTING TO REVISE THEIR ESTIMATES OF FIRSTQUARTER GROWTH SAID MR PETTIT ALTHOUGH IT'S STILL A LITTLE EARLY TO TELL HE SAID FEARS THAT THIS QUARTER'S GROWTH WOULD FALL WELL BELOW THE 38 RATE RECORDED IN THE FOURTH QUARTER OF 1992 COULD BE ALLAYED THIS OPTIMISM ON THE OUTLOOK FOR THE US STANDS IN SHARP CONTRAST TO THE GROWING DARKNESS CLOUDING GERMANY'S PROSPECTS DEALERS SAID YESTERDAY THE GERMAN ECONOMICS MINISTRY REPORTED THAT INDUSTRIAL PRODUCTION FELL A SEASONALLY ADJUSTED 18 IN DECEMBER FROM NOVEMBER THE THIRD MONTHLY DECLINE IN A ROW ECONOMISTS HAD EXPECTED A DROP OF ONLY 11 DESPITE THE CRUMBLING ECONOMY BUNDESBANK OFFICIALS CONTINUE TO STAND FIRM ON INTEREST RATES ECHOING RECENT COMMENTS BY HIS COLLEAGUES REIMUT JOCHIMSEN CENTRAL BANK COUNCIL MEMBER SAID YESTERDAY THAT RATES ALREADY HAVE BEEN CUT AS FAR AS CAN BE POSSIBLY JUSTIFIED LONGTERM CREDIT BANK'S MR PETTIT SAID BUNDESBANK OFFICIALS CLEARLY AREN'T GIVING ANY GROUND ON INTEREST RATES THEIR STORY HASN'T CHANGED HE SAID 9302030035 930203 INTERNATIONAL BRIEF TELEFONOS DE MEXICO SA FOURTHPERIOD NET ROSE 2 ON 14 INCREASE IN REVENUE TELEFONOS DE MEXICO SA THE BELLWETHER OF THE MEXICAN STOCK MARKET POSTED SLIGHTLY HIGHER EARNINGS FOR 1992 TELMEX SAID EARNINGS LAST YEAR ROSE 2 TO 256 BILLION THE COMPANY RESTATED ITS 1991 NET INCOME TO 251 BILLION AFTER POSTING AN EXTRAORDINARY GAIN FROM DEBT RETIREMENT WITHOUT THE GAIN NET INCOME WOULD HAVE RISEN 12 THE COMPANY SAID SALES ROSE NEARLY 14 TO 664 BILLION REFLECTING A 12 INCREASE IN PHONE LINES WALL STREET REACTION WAS MIXED ON THE REPORT BY TELMEX WHOSE STOCK COMPRISES FULLY A FOURTH OF THE CAPITALIZATION OF THE MEXICAN STOCK EXCHANGE ON THE NEW YORK STOCK EXCHANGE YESTERDAY TELMEX ADRS CLOSED AT 5250 DOWN 875 CENTS HANCOCK INSTITUTIONAL EQUITY SERVICES A BOSTON BROKERAGE HOUSE REPRESENTING INSTITUTIONAL CLIENTS LOWERED ITS INVESTMENT RATING ON TELMEX TO HOLD FROM BUY BECAUSE THE RESULTS WERE BELOW HANCOCK'S EXPECTATIONS OTHER ANALYSTS SAID SOME US INVESTORS ARE GROWING SKITTISH ABOUT MEXICAN FOREIGNINVESTMENT PROSPECTS THE CLINTON ADMINISTRATION IS SHOWING EARLY SIGNS OF PROTECTIONISM WHICH COULD ENDANGER PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT THEY SAID 9302030034 930203 BUSINESS BRIEF MARRIOTT CORP SMALL GROUP OF BONDHOLDERS SAYS DISCUSSIONS COLLAPSED A GROUP REPRESENTING LESS THAN 10 OF MARRIOTT CORP'S BONDS OUTSTANDING SAID DISCUSSIONS HAVE SUBSTANTIALLY BROKEN DOWN AFTER THE COMPANY REBUFFED THEIR EFFORTS TO OFFER ALTERNATIVES TO MARRIOTT'S SPLITUP PLAN BUT A SPOKESMAN FOR MARRIOTT BASED IN BETHESDA MD SAID WE HAVE ONGOING DISCUSSIONS WITH MAJOR BONDHOLDERS AND FURTHER MEETINGS ARE SCHEDULED IN THE NEXT DAY OR SO HE DECLINED TO NAME ANY OF THE BONDHOLDERS BUT SAID MANY GROUPS ARE INVOLVED IN OUR TALKS MARRIOTT RANKLED ITS DEBTHOLDERS IN OCTOBER WHEN IT PROPOSED TO SPLIT INTO TWO COMPANIES ONE A RELATIVELY DEBTFREE HOTEL OPERATOR AND THE OTHER A REAL ESTATE COMPANY LOADED UP WITH MOST OF ITS 3 BILLION OF DEBT THE MARKET VALUE OF MARRIOTT BONDS FELL SHARPLY AFTER THE ANNOUNCEMENT PROMPTING BONDHOLDER SUITS TO STOP THE PLAN BUT SINCE THEN MARRIOTT HAS HELD DISCUSSIONS ON POSSIBLE ALTERNATIVES A SPOKESMAN FOR THE DISSENTERS SAID THEY WOULD CONTINUE TO PRESS THEIR LAWSUIT IN LIGHT OF WHAT HE CALLED THE BREAKDOWN OF TALKS BUT THE MARRIOTT SPOKESMAN RESPONDED THAT THE PEOPLE ISSUING THE STATEMENT ABOUT TALKS BREAKING DOWN DON'T NECESSARILY REPRESENT THE VIEWS OF MOST BONDHOLDERS OF THE COMPANY 9302030033 930203 BUSINESS BRIEF BAUSCH & LOMB INC ACQUISITION OF DAHLBERG INC IS PLANNED FOR 158 MILLION BAUSCH & LOMB INC ROCHESTER NY AGREED TO BUY HEARINGAID MAKER DAHLBERG INC FOR 158 MILLION OR 24 A SHARE IN A MOVE EXPECTED TO GIVE THE HEALTHCARE AND OPTICALPRODUCTS COMPANY A SIGNIFICANT SHARE OF THE HEARINGAID BUSINESS DAHLBERG GOLDEN VALLEY MINN HAD ESTIMATED 1992 REVENUE OF 90 MILLION AND IS THE SECONDLARGEST DOMESTIC HEARINGAID MAKER AND DISTRIBUTOR WITH THE ACQUISITION BAUSCH & LOMB WILL GET MORE THAN 1000 FRANCHISED FITTING OUTLETS TO SELL ITS OWN NEW HEARING AID ALONGSIDE DAHLBERG'S BAUSCH & LOMB'S HEARING AID A SOFT SHELL FOR THE INNER EAR AND CAN BE FITTED IN AN HOUR HAS BEEN UNDER DEVELOPMENT SINCE BAUSCH & LOMB ACQUIRED THE TECHNOLOGY IN 1989 IT HAS BEEN AVAILABLE ON A LIMITED WHOLESALE BASIS THROUGH AUDIOLOGISTS AT PRICES OF ABOUT 300 DAHLBERG'S HEARING AID RETAILS FOR SIGNIFICANTLY MORE1000 TO 1200 AND IS GEARED TOWARD MORE ADVANCED HEARING PROBLEMS 9302030032 930203 INTERNATIONAL BRIEF AHOLD NV COMPANY TO CONTINUE SEARCH FOR STAKES IN SUPERMARKETS DUTCH FOOD RETAILER AHOLD NV WILL CONTINUE TO SHOP AROUND FOR MAJOR STAKES IN OTHER SUPERMARKET OPERATORS MOSTLY IN THE US AND WESTERN EUROPE THE COMPANY'S PRESIDENTDESIGNATE SAID CEES VAN DER HOEVEN WHO WILL SUCCEED PIERRE EVERAERT AS PRESIDENT MARCH 1 SAID THERE WILL BE NO LETUP IN AHOLD'S AGGRESSIVE QUEST TO INCREASE THE GLOBAL MARKET SHARE FOR ITS SUPERMARKET OPERATIONS WE WANT TO BUILD UP OUR MARKET SHARE IN ALL OF OUR AREAS IN WHICH WE OPERATE HE SAID HE ADDED THAT LARGE ACQUISITIONS SHOULDN'T BE EXCLUDED ALTHOUGH MUCH OF AHOLD'S EXPANSION WILL COME FROM INTERNAL GROWTH MR VAN DER HOEVEN SPEAKING IN AN INTERVIEW AT THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND SAID THAT HIS OUTLOOK FOR AHOLD IN 1993 REMAINS OPTIMISTIC ALTHOUGH HE DECLINED TO FORECAST PROFIT EXPECTATIONS FOR 1992 OR 1993 THE RETAILER WILL ANNOUNCE ITS 1992 PROFIT AND DIVIDEND MARCH 18 GROUP NET INCOME STOOD AT 2758 MILLION GUILDERS 1499 MILLION IN 1991 AHOLD REPORTED RECENTLY THAT GROUP SALES ROSE 73 LAST YEAR TO 223 BILLION GUILDERS 9302030031 930203 BUSINESS BRIEF INDEPENDENT INSURANCE GROUP INC HURRICANE IS CITED IN LOSS OF 144 MILLION FOR QUARTER INDEPENDENT INSURANCE GROUP INC HURT BY LOSSES FROM HURRICANE ANDREW REPORTED A FOURTHQUARTER LOSS OF 144 MILLION OR 109 A SHARE THE LOSS COMPARES WITH NET INCOME OF 65 MILLION OR 49 CENTS A SHARE IN THE FOURTH QUARTER OF 1991 AND IT REFLECTS 133 MILLION IN AFTERTAX LOSSES FROM ANDREW ALSO THE JACKSONVILLE FLA COMPANY RECORDED A PROVISION FOR A 62 MILLION JURY JUDGMENT IN AN UNRELATED ACCIDENTANDHEALTH POLICY DISPUTE LATE LAST YEAR THE COMPANY SAID IT IS APPEALING THE VERDICT THE COMPANY SAID IT CUT ITS FIRSTQUARTER DIVIDEND TO SIX CENTS A SHARE IN AN EFFORT TO OFFSET THE IMPACT OF ANDREW THE DIVIDEND HAD BEEN 22 CENTS A SHARE THE COMPANY WHICH ALSO WRITES LIFE INSURANCE POLICIES ALSO SAID IT HAS CEASED LINES OF HOMEOWNERS INSURANCE WITH THE HEAVIEST EXPOSURE TO CATASTROPHES INDEPENDENT INSURANCE GROUP'S HURRICANE ANDREW LOSSES TOTALED 394 MILLION FOR THE YEAR WHICH WAS MORE THAN THE COMPANY HAD EXPECTED IN SEPTEMBER BUT IN LINE WITH A REVISED PREDICTION IN NOVEMBER THE COMPANY POSTED A LOSS OF 151 MILLION OR 115 A SHARE FOR THE YEAR COMPARED WITH EARNINGS OF 286 MILLION OR 218 A SHARE IN 1991 9302030030 930203 BUSINESS BRIEF COOPER COS FOURTHPERIOD LOSS WIDENS AS AUDITORS EXPRESS CONCERN COOPER COS POSTED A WIDENED FOURTHQUARTER LOSS PARTLY REFLECTING LARGE LITIGATION LOSS RESERVES WHILE ITS AUDITORS EXPRESSED CONCERN THAT POTENTIALLY HIGHER LITIGATION COSTS COULD UNDERMINE COOPER'S ABILITY TO CONTINUE AS A GOING CONCERN THE NEW YORKBASED HEALTHCARE PRODUCTS COMPANY SAID ITS LOSS FOR THE PERIOD WAS 169 MILLION OR 56 CENTS A SHARE COMPARED WITH 62 MILLION OR 26 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE MORE THAN DOUBLED TO 219 MILLION FROM 102 MILLION OF THE 1992 FOURTHQUARTER LOSS 137 MILLION WAS ATTRIBUTED TO LITIGATION LOSS RESERVES AND UNREALIZED LOSSES IN MARKETABLE SECURITIES COOPER SAID OF THE LITIGATION LOSS RESERVES 7 MILLION RELATES TO BREASTIMPLANTS LITIGATION ACCORDING TO A SPOKESWOMAN COOPER FACES SIGNIFICANT POTENTIAL LIABILITIES FROM CIVIL LAWSUITS BROUGHT BY WOMEN WHO USED ITS BREAST IMPLANTS THE DOUBTS ABOUT COOPER'S EXISTENCE AS A GOING CONCERN CAST BY THE COMPANY'S INDEPENDENT AUDITORS KPMG PEAT MARWICK PRIMARILY RELATES TO BREAST IMPLANT LITIGATION THE SPOKESWOMAN SAID IN NOVEMBER COOPER HAD BEEN NAMED AS A DEFENDANT IN A FEDERAL CRIMINAL INDICTMENT AND IN A CIVIL COMPLAINT BY THE SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH A JUNKBOND INSIDER TRADING SCHEME THE COMPANY'S SHARES CLOSED DOWN 1875 CENTS TO 9375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9302030029 930203 BUSINESS BRIEF TELEDYNE INC TELEDYNE RELAYS UNIT FACES POSSIBLE BAR FROM US JOBS TELEDYNE INC SAID THE DEFENSE DEPARTMENT IS CONSIDERING BARRING THE COMPANY'S TELEDYNE RELAYS UNIT FROM GOVERNMENT CONTRACTS IN RESPONSE TO ITS NOVEMBER GUILTY PLEA TO FALSIFYING TESTS ON ELECTRONIC RELAY SWITCHES USED IN MISSILES AND SPACE LAUNCH VEHICLES TELEDYNE BASED IN LOS ANGELES PAID A 175 MILLION FINE IN THAT CASE THE LARGEST CRIMINAL FINE EVER AGAINST A DEFENSE CONTRACTOR AND THE DEFENSE LOGISTICS AGENCY OF THE PENTAGON SUSPENDED TELEDYNE RELAYS FROM GOVERNMENT CONTRACTING IN OCTOBER PARTLY BECAUSE THE UNIT FAILED TO SET UP A LONGPROMISED ETHICS PROGRAM BUT IF IT IS BARRED TELEDYNE RELAYS COULD BE PREVENTED FROM GETTING GOVERNMENT CONTRACTS OR SUBCONTRACTS FOR AS LONG AS THREE YEARS TELEDYNE WHICH DISCLOSED THE CONSIDERATION OF BARRING IN THE TELEDYNE ANNUAL REPORT SAID IT CAN'T DETERMINE YET WHETHER THE SUSPENSION OR POSSIBLE BARRING OF TELEDYNE RELAYS WOULD LEAD TO ANY LOSSES NAVY CAPT MICHAEL FINLEY AN OFFICIAL AT THE DEFENSE LOGISTICS AGENCY SAID THERE'S BEEN NO DECISION TO BAR TELEDYNE AS OF YET THEY WERE UNDER SUSPENSION THAT'S THEIR STATUS AS OF NOW HE DECLINED TO ELABORATE 9302030028 930203 WHAT'S NEWS BUSINESS AND FINANCE CLINTON PLANS TO INCLUDE AN INVESTMENT TAX CREDIT RETROACTIVE TO DEC 3 1992 IN THE ECONOMIC PROPOSAL HE IS TO UNVEIL THIS MONTH THE TAX CREDIT WOULD ACCOMPANY INCREASED SHORTTERM SPENDING AS PART OF AN ECONOMIC STIMULUS PACKAGE ADMINISTRATION AIDES ARE TALKING TO LAWMAKERS ABOUT 16 BILLION IN ADDED SPENDING AND 15 BILLION IN TAX BREAKS THE INDEX OF LEADING ECONOMIC INDICATORS JUMPED 19 IN DECEMBER THE BIGGEST RISE SINCE 1983 THE INDICATOR THAT INCREASED THE MOST WAS CONSUMER EXPECTATIONS THE INDEX'S PRICE AND MONEYSUPPLY COMPONENTS SUGGEST INFLATION WILL CONTINUE TO BE LOW SEPARATELY NEWHOME SALES CLIMBED 63 TREASURY BOND PRICES FELL MORE THAN 1/2 POINT ON THE ECONOMIC DATA STOCKS AND THE DOLLAR WERE MIXED DETROIT'S BIG THREE AUTO MAKERS PLAN TO FILE FEB 12 A SWEEPING TRADE COMPLAINT ACCUSING JAPANESE EUROPEAN AND KOREAN RIVALS OF SELLING CARS IN THE US AT UNFAIRLY LOW PRICES BUT SOME BIG THREE OFFICIALS FEAR THE MOVE WILL HURT THE US CAR MAKERS' IMAGE EUROPEAN TRADE MINISTERS WARNED THAT THE CLINTON ADMINISTRATION COULD EXTINGUISH WORLD ECONOMIC RECOVERY BY BEING TOO TOUGH IN TRADE DISPUTES WHILE THREATENING RETALIATION AGAINST RECENT US MOVES THE EC OFFICIALS REFRAINED FROM TAKING IMMEDIATE STEPS CHRYSLER SOLD 46 MILLION NEW COMMON SHARES SIX MILLION MORE THAN INITIALLY PLANNED TO RAISE 178 BILLION THE STOCK SALE WAS THE SECOND LARGEST EVER BY A US INDUSTRIAL CONCERN THE FEDERAL PENSION INSURANCE AGENCY'S FINANCES HAVE WORSENED THE FORMER CHIEF OF THE AGENCY REPORTED UNDERFUNDING OF COMPANY PENSION PLANS TOTALS AS MUCH AS 20 BILLION DRUG COMPANIES BRACED FOR THE RELEASE TODAY OF A CONGRESSIONAL STUDY EXPECTED TO SHOW THAT THEY BROKE PUBLIC PROMISES TO HOLD PRICE INCREASES LAST YEAR BELOW THE INFLATION RATE CELLULAR STOCKS REBOUNDED AS SCIENTISTS TOLD LAWMAKERS THAT PORTABLE CELLULAR PHONES PROBABLY DON'T CAUSE BRAIN TUMORS BUT MAY POSE A RISK OF SPEEDING GROWTH OF EXISTING CANCERS LUMBER FUTURES CLIMBED THE MAXIMUM AMOUNT ALLOWED FOR THE SEVENTH CONSECUTIVE TRADING DAY IN THE WAKE OF A SHORTAGE CAUSED BY AN UPTURN IN BUILDING AND CONSTRAINTS ON LOGGING AETNA IS TAKING A 180 MILLION CHARGE TO BOOST RESERVES FOR ASBESTOS AND ENVIRONMENTAL CLAIMS CREATING A FOURTHQUARTER LOSS FOR THE INSURER DUTCH TRUCK MAKER DAF SOUGHT COURT PROTECTION FROM CREDITORS AFTER EFFORTS TO DEVISE A BAILOUT FAILED IBM UNVEILED A NUMBER OF COMPUTERS INCLUDING A SUPERCOMPUTER THAT RUN ON THE CHIPS IN THE COMPANY'S POPULAR WORKSTATION MODELS COMPAQ PLANS TO CUT PRICES ON ITS PERSONAL COMPUTERS SOLD IN JAPAN AND TO OFFER LIBERAL SERVICE GUARANTEES CHALLENGING RIVALS NEC AND DELL WHICH ARE KNOWN FOR THEIR STRONG SERVICE AND LOW PRICES RESPECTIVELY AVIS PLANS TO OFFER A THREEMONTH RATE UNDER WHICH CUSTOMERS CAN RENT ONE CAR AT A TIME AS MANY TIMES AS NEEDED AT ANY AVIS US LOCATION THE OFFER IS AIMED AT FREQUENT TRAVELERS BONDS LEHMAN BROTHERS TREASURY INDEX 481946 OFF 1707 COMMODITIES OIL 2000 A BARREL OFF 31 CENTS DOW JONES FUTURES INDEX 12288 UP 071 SPOT INDEX 12161 UP 061 DOLLAR 12465 YEN OFF 040 16405 MARKS UP 00047 9302030027 930203 PNC GETS EXTENSION FOR REVIEW OF BOOKS IN OHIO BANCORP DEAL PITTSBURGH PNC FINANCIAL CORP RECEIVED PERMISSION TO TAKE A CLOSER LOOK AT THE LOANS OF OHIO BANCORP WHICH IT HAD AGREED TO ACQUIRE INDICATING THE DEAL MAY BE IN TROUBLE OHIO BANCORP SAID THAT AT PNC'S REQUEST IT AGREED TO EXTEND UNTIL FEB 26 THE DUE DILIGENCE PERIOD FOR PNC TO SCRUTINIZE OHIO BANCORP'S BOOKS THE INITIAL 60DAY DUE DILIGENCE PERIOD WAS DUE TO EXPIRE YESTERDAY PNC INDICATED THAT IF IT PROCEEDS WITH THE TRANSACTION IT MAY REQUIRE AN ADJUSTMENT TO THE EXCHANGE RATIO OF THE MERGER AGREEMENT SAID A SPOKESMAN FOR OHIO BANCORP WHICH IS BASED IN YOUNGSTOWN OHIO UNDER THE AGREEMENT ANNOUNCED DEC 4 EACH OHIO BANCORP SHARE OUTSTANDING WAS TO BE EXCHANGED FOR 112 SHARES OF PNC COMMON STOCK AT A PRICE OF ABOUT 31 FOR EACH OHIO BANCORP SHARE THE INDICATED VALUE OF THE TRANSACTION WAS 250 MILLION THE OHIO BANCORP SPOKESMAN ADDED THAT PNC MIGHT TERMINATE THE AGREEMENT IF AN INVESTIGATION REVEALS MATTERS THAT ADVERSELY AFFECT THE FINANCIAL BUSINESS OR ECONOMIC ASSUMPTIONS UNDERLYING THE TRANSACTION A SPOKESMAN FOR PNC SAID THE COMPANY HAD NOTHING TO ADD TO OHIO BANCORP'S STATEMENT OHIO BANCORP WITH 17 BILLION IN ASSETS IS A TROUBLED BUT PROMISING REGIONAL BANK THAT HAS HAD AN UNPROFITABLE YEAR AND INTERNAL UPHEAVAL THE BANK WILL ANNOUNCE FOURTHQUARTER AND 1992 RESULTS AFTER THE REVIEW OF ITS BOOKS IS COMPLETED IN THE THIRD QUARTER OHIO BANCORP POSTED A LOSS OF 113 MILLION OR 163 A SHARE AFTER A SPECIAL 29 MILLION PROVISION FOR LOAN LOSSES THE PROVISION RELATED MOSTLY TO LOANS TO PHARMOR INC A YOUNGSTOWN DEEPDISCOUNT DRUGSTORE CHAIN WHICH FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION IN AUGUST IN RECENT MONTHS FIVE OFFICERS HAVE UNEXPECTEDLY LEFT OHIO BANCORP INCLUDING A SENIOR VICE PRESIDENT FOR LENDING AND VICE PRESIDENTS IN CHARGE OF COMMERCIAL LOANS OPERATIONS AND AUDITING FOR PNC WITH 466 BILLION OF ASSETS ACQUISITION OF OHIO BANCORP WOULD PROVIDE A FOOTHOLD IN EASTERN OHIO PNC'S PRESENCE IN OHIO SO FAR HAS BEEN LIMITED TO THE CINCINNATI AREA 9302030026 930203 BUSINESS BRIEFS AIRGAS INC WILMINGTON DEL A DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES ACQUIRED CLOSELY HELD PRESTO TECHNOLOGIES A DISTRIBUTOR OF GASES FOR AN UNDISCLOSED AMOUNT COMPUTER SCIENCES CORP SIGNED AN 11YEAR CONTRACT VALUED AT 150 MILLION TO 200 MILLION TO PROVIDE DATAPROCESSING SERVICES TO STOREHOUSE PLC UNIT BHS A BRITISH FASHION RETAILER CLEAR CHANNEL COMMUNICATIONS INC THE OPERATOR OF 25 RADIO STATIONS AND SEVEN TELEVISION STATIONS HAS CLOSED ITS PURCHASE OF KQXTFM SAN ANTONIO TERMS WERE NOT DISCLOSED INTERTEL COMMUNICATIONS INC SAID ITS 5050 JOINT VENTURE WITH GREENSTAR COMMUNICATIONS WILL BUILD A 42MILE FIBER OPTIC NETWORK IN PHOENIX US LONG DISTANCE SAID IT HAS SIGNED AGREEMENTS THAT WILL INCREASE THE NUMBER OF PAY TELEPHONES IT SERVICES BY MORE THAN 10 INCREASING REVENUE ABOUT 600000 A MONTH NORTH COAST ENERGY INC SIGNED AN AGREEMENT WITH THE GOVERNMENT OF PAKISTAN AND STATEOWNED OIL & GAS DEVELOPMENT CORP OF PAKISTAN TO SPLIT REVENUE FROM ENHANCED PRODUCTION AT THE TOOT OIL FIELD LCI INTERNATIONAL A CLOSELY HELD TELECOMMUNICATIONS COMPANY WILL BUY LONG DISTANCE SERVICE INC A MCLEAN VA CLOSELY HELD TELECOMMUNICATIONS CONCERN TERMS WERE NOT DISCLOSEDEND 9302030025 930203 TECHNOLOGY BRIEF ORACLE SYSTEMS CORP THIRDQUARTER CHARGE IS SET FOR SETTLEMENT OF LAWSUITS ORACLE SYSTEMS CORP REDWOOD CITY CALIF SAID IT AGREED TO SETTLE SEVERAL LAWSUITS ALLEGING SECURITIES VIOLATIONS FOR 24 MILLION WHICH IT WILL ABSORB AS A ONETIME CHARGE IN THE THIRD QUARTER ENDING FEB 28 A CLASS ACTION AND OTHER STOCKHOLDER SUITS WERE FILED IN 1990 ALLEGING THAT THE COMPANY AND SOME OF ITS OFFICERS AND DIRECTORS VIOLATED FEDERAL SECURITIES LAWS BY INFLATING STOCK PRICES THE SOFTWARE COMPANY SAID IT WAS ADMITTING NO WRONGDOING BUT THAT IT WAS EASIER TO SETTLE PENDING COURT APPROVAL THAN TO FIGHT ORACLE SAID THE CHARGE WOULD COME TO 12 CENTS A SHARE BUT WOULDN'T SAY HOW RESULTS MIGHT BE AFFECTED ZACK'S CORPORATE EARNINGS ESTIMATOR'S MEAN PREDICTION FOR THE QUARTER'S PERSHARE EARNINGS IS 23 CENTS UP FROM THE 12 CENTS THE COMPANY POSTED A YEAR EARLIER FOR THE YEARAGO QUARTER ORACLE REPORTED NET INCOME OF 168 MILLION ON REVENUE OF 2896 MILLION 9302030024 930203 LEISURE & ARTS THE FUHRER'S FAVORITE OPERA BY MANUELA HOELTERHOFF NEW YORK IT WAS STRANGE TO HEAR DMITRI SHOSTAKOVICH'S BABI YAR SYMPHONY AT AVERY FISHER HALL RECENTLY WHEN HE COMPOSED THIS HARROWING PIECE ABOUT THE KILLING OF JEWS BY NAZIS IN THE UKRAINE AND THE DAILY HUMILIATIONS OF SOVIET LIFE TO TEXTS BY YEVGENY YEVTUSHENKO IT WAS 1962 AND KHRUSHCHEV WAS STILL MAKING TROUBLE IN THE WORLD BY THE TIME SHOSTAKOVICH DIED IN 1975 NOT MUCH HAD CHANGED IN THE USSR BREZHNEV STIRRED TORPIDLY FROM HIS KREMLIN LAIR TO SIGN THE OFFICIAL OBITUARY NOW EVERYTHING HAS CHANGED ONCE ARTISTS AND POETS TOLD THE TRUTH THAT WAS MISSING FROM PRAVDA NOWADAYS PRAVDA MORE OFTEN THAN NOT TELLS THE TRUTH AND WHERE DOES THAT LEAVE THE POETS THE HAND THAT FED AND BEAT THEM IS WITHERED THE DEEPLY IRONICAL SHOSTAKOVICH WOULD HAVE SQUEEZED GRIM HUMOR FROM THIS TURN OF EVENTS THAT HAS FREED AND MARGINALIZED THE ARTIST WHAT FURY THE PREMIERE HAD AROUSED BRINGING OUT THE CENSORS AND THE POLICE THE SYMPHONY DARED TO IMPLY THAT ANTISEMITISM WAS NOT AN EXCLUSIVELY GERMAN DISEASE AND THAT THE SOVIET UNION WAS NO PARADISE ON EARTH ASTONISHINGLY THIS WAS THE FIRST PERFORMANCE OF THE SYMPHONY SHOSTAKOVICH'S THIRTEENTH BY THE NEW YORK PHILHARMONIC IT MADE A DEEP IMPRESSION UNDER KURT MASUR'S LEADERSHIP WITH THE BARITONE SERGEI LEIFERKUS AS ELOQUENT SOLOIST IN ALL THERE ARE FIVE POEMS OR MOVEMENTS EACH A POTENT INDICTMENT OF A LAND DARKENED BY FEARS AND ENCIRCLED BY FIERCELY QUIET WOMEN STANDING ON LINE THE MOST CHILLING IS NOT SURPRISINGLY THE BABI YAR WHICH BEGINS WITH SINISTER CHIMES SUGGESTING A LANDSCAPE BEYOND REDEMPTION OVER BABI YAR THERE ARE NO MONUMENTS SINGS THE BASS CHORUS IN DARK MONOTONE THE STEEP PRECIPICE IS LIKE A CRUDE GRAVESTONE I AM TERRIFIED I AM AS OLD TODAY AS THE JEWISH PEOPLE THE DISTURBING VIVIDNESS OF MR YEVTUSHENKO'S LANGUAGE REMAINS UNDIMMED MAGNIFIED BY SHOSTAKOVICH AND NOW BY THE SEARING PERFORMANCE AT FISHER HALL ONLY IN THE ALLEGRETTO MOVEMENT DOES THE TONE LIGHTEN SUBSTANTIALLY AS SOLOIST AND CHORUS PAY SARDONIC TRIBUTE TO HUMOR THE SLIPPERY SURVIVOR OF ALL HEAVYHANDED TYRANTS CZARS AND KINGS DO THEIR BEST TO KEEP HIM DOWN BUT HUMOR ALWAYS GETS AWAY THUMBING HIS NOSE AND APPEARING IN THE UNLIKELIEST PLACES FROM PRISON CELLS TO THE WINTER PALACE OF THIS MR YEVTUSHENKO HIMSELF OFFERED LIVING PROOF AS HE STEPPED TO THE STAGE TO READ BABI YAR AND TWO NEW POEMS IN ENGLISH THE ONE ABOUT A FEARFUL GRASSHOPPER I COULD NOT FATHOM BUT ANOTHER SPOKE DIRECTLY TO CURRENT CHAOS IS IT TRUE MR YEVTUSHENKO ASKED THAT WE NO LONGER EXIST OR ARE WE NOT YET BORN WHY DIDN'T HUMOR STOP BY THE METROPOLITAN OPERA THE OTHER NIGHT FOR A NEW DIE MEISTERSINGER RICHARD WAGNER'S FIVEHOUR COMIC OPERA ABOUT A QUAINT SINGING CONTEST IN OLD NUREMBERG WE MISSED HIM MAYBE THE WILY FELLOW GOT WAYLAID BY CLICHE WHICH GUARDS THE STAGE DOOR WHEN THE DIRECTOR OTTO SCHENK AND THE SET DESIGNER GUNTHER SCHNEIDERSIEMSSEN ARE IN TOWN TO DO ANOTHER ONE OF THEIR TIREDLY TRADITIONAL PRODUCTIONS THAT GIVE REALISM A BAD NAME THE CLICHE FAMILY CLINGS TO THAT DUO LIKE BEES TO HONEY DUCKS TO WATER DOGS TO BONES DID WE REALLY NEED A NEW MEISTERSINGER WHEN THE COMPANY ALREADY HAD A BARELY USED SIMILARLY CONVENTIONAL BUT MORE SKILLFULLY DESIGNED PRODUCTION BY ROBERT O'HEARN YOU DID WONDER STARING NUMBLY AT A BLANK CHURCH WALL FOR THE ETERNAL FIRST ACT DURING WHICH TIME A MORE SUCCINCT PIECE SAY DER CORREGIDOR COULD HAVE STARTED AND FINISHED AN UBERWURST OF AN OPERA OVERSTUFFED AND OVERLONG MEISTERSINGER COULD DO WITH A LITTLE CUTTING OR AT LEAST A STAGING LIVELIER THAN THIS ONE ONLY OCCASIONALLY WAS THERE A SUGGESTION OF MR SCHENK'S ONETIME TALENT FOR COMEDY IN THE BRIEF PILLOW FIGHT FOR INSTANCE OR IN THE FESTIVE SONG CONTEST THAT CONCLUDES THE OPERA AND FEATURED THE MET'S CHORUS IN SPLENDID VOICE AND SUFFICIENT IN NUMBER TO OBSCURE LARGE SECTIONS OF THE SIMPLEMINDED SET THE MEADOW CONSISTING OF A BIG ARCH TREES AND TOWERS LOOMING IN THE BACKGROUND ALL BATHED IN SICKLY RADIOACTIVELOOKING SUNLIGHT BY THE MET'S STONEAGE LIGHTING FUNCTIONARY GIL WECHSLER REMINDED SEVERAL NEW YORKERS OF CENTRAL PARK AND A FEW VISITING EUROPEANS OF SALZBURG WHERE THEY USED TO HAVE A MEISTERSINGER JUST LIKE THIS ONE IN FACT THIS NEW PRODUCTION IS LARGELY A RETREADLIKE THE MET'S RECENT PARSIFAL BY THE SAME TEAMOF THE SALZBURG EASTER FESTIVAL STAGING IN THE EARLY 1970S FOR THE PRODUCTION'S COST COULD WE NOT ALL HAVE BEEN FLOWN TO SALZBURG'S UPCOMING FESTIVAL OR TO NUREMBERG WHOSE FAMOUS LEBKUCHENS WE YEARNED FOR AS THE MET'S CATERERS TYPICALLY RAN OUT OF FOOD AT LEAST SOME OF THE SINGING WAS DIVERTING AS THAT PATHETIC FUDDYDUDDY ECKMESSER HERMANN PREY MADE HIS INTERMINABLE DIALOGUE WITH HANS SACHS SEEM SHORTER AND FRANCISCO ARAIZA BROUGHT A PLEASINGLY ITALIANATE TONE TO WALTHER'S PRIZE SONG LITERALLY LIGHTWEIGHT BY WAGNERIAN STANDARDS HE WAS A HANDSOME MATCH FOR KARITA MATTILA A SOPRANO WITH A BOUNTIFUL VOICE AND AN ATHLETIC MANNER RATHER AT ODDS WITH HER FELLOW NUREMBERGIANS WHO JUST STOOD AROUND JANHENDRIK ROOTERING WOBBLED OUT HER FATHER'S LINES FROM UNDERNEATH AN ASTONISHING WIG THE AGING MICHAEL MILKEN MIGHT LIKE TO STEAL MOSTLY THOUGH ATTENTION CENTERED ON DONALD MCINTYRE MANY OF THE ELDER TREES THE MELANCHOLY COBBLER SINGS ABOUT HAVE BLOOMED SINCE MR MCINTYRE FIRST ASSUMED THIS ROLE BUT HE STIRRED US STILL WITH HIS DIGNIFIED PRESENCE AND DEEPLY COMMITTED SINGING ADMITTEDLY THE VOICE IS NO LONGER STRONG IN ITS UPPERMOST REGISTER AND WHEN IT WAS TIME FOR SACHS TO SEND US HOME WITH HIS CREEPY ODE TO HOLY GERMAN ART UNDILUTED BY FRENCH FANCIES THE BARITONE WAS RATHER LACKING IN FERVOR WHAT A GOOD THING HE WASN'T SINGING FOR HITLER IN BAYREUTH THEY'D BE LOOKING FOR A NEW SACHS RIGHT NOW THIS WAS THE FUHRER'S FAVORITE MOMENT IN HIS FAVORITE OPERA AND IT INVARIABLY BROUGHT HIS HENCHMEN TO THEIR FEET I WONDER IF THE SONG WOULD HAVE GOTTEN QUITE THE RISE IT DID OUT OF A NEW YORK AUDIENCE IF THE MET HAD BEAMED OUT A TRANSLATION IN SUPERTITLES BUT THE MET STILL WON'T USE THEM ON THE ORDERS OF JAMES LEVINE WOULD THAT THE ARTISTIC DIRECTOR WERE AS CONCERNED ABOUT WHAT APPEARS INSIDE THE PROSCENIUM AS ABOVE IT HIS SOLE INTEREST THESE DAYS IS IN THE PIT WHERE HE LED HIS PLIANT MUSICIANS IN A FABULOUSLY PLUSH READING DEVOID OF MOMENTUM IT REMINDED ME OF A COMMENT BY A FANCY FRENCHMAN HENRI MATISSE WHO SAID HE DREAMED OF AN ART AS COMFORTABLE AS A GOOD ARMCHAIR WHEN AN OPERA IS THIS LONG THAT'S SOMETHING TO BE GRATEFUL FOR 9302030023 930203 WHO'S NEWS PANHANDLE EASTERN CORP PANHANDLE EASTERN CORP HOUSTON WILLIAM W SLAUGHTER FORMERLY GENERAL MANAGER OF STRATEGIC PLANNING AND DEVELOPMENT FOR THE TEXAS EASTERN TRANSMISSION CORP AND ALGONQUIN GAS TRANSMISSION CO UNITS OF THIS NATURAL GAS PIPELINE CONCERN WAS NAMED VICE PRESIDENT OF PLANNING FOR THOSE TWO UNITS 9302030022 930203 HE OBVIOUSLY HAS STREET SMARTS BUT THAT ISN'T HELPING HIM MUCH BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL COPENHAGEN AT AGE 73 ALEX BRASK THOMSEN HAS JUST ABOUT EVERYTHING MONEY CAN BUY EXCEPT HIS FAVORITE STREET THE VOLUBLE SELFMADE AND ECCENTRIC BILLIONAIRE WHO SHELTERS HIS FORTUNE BY LIVING IN MONACO HAS A HOUSE IN THE SWISS ALPS AND A SEVENROOM MONTE CARLO APARTMENT OVERLOOKING THE MEDITERRANEAN BUT WHAT HE REALLY WANTS IS FOR COPENHAGEN'S CITY FATHERS TO RENAME NORREBROGADE A FARFROMPOSH SHOPPING STREET ALEX BRASK THOMSEN GADE FOR THE PRIVILEGE HE'S WILLING TO PAY 250 MILLION KRONER 41 MILLION MY GRANDFATHER STARTED ON NORREBROGADE MORE THAN 100 YEARS AGO SELLING FLOWERS SAYS THE PONYTAILED MR BRASK THOMSEN WHO MADE HIS FORTUNE IN CHEMICALS THE STOCK MARKET AND BANKING MY GRANDMA MY MOTHER MY FATHER MY WIFE WE ALL LIVED ON NORREBROGADE THAT STREET MEANS A LOT TO ME TODAY IT'S A TIREDLOOKING STREET WHERE TREES AND BENCHES ARE HARD TO FIND BUT BUS FUMES AREN'T STILL THE CITY HAS REFUSED MR BRASK THOMSEN'S OFFER INSISTING THAT STREET NAMES ARE RESERVED FOR DEAD FOLK WHO MADE A LASTING CONTRIBUTION TO THE HISTORIC CITY GETRICHQUICK STILLBREATHING TYPES ESPECIALLY THOSE WHO LIVED IN SWITZERLAND FOR 35 YEARS BEFORE MOVING TO MONTE CARLO NEED NOT APPLY MR BRASK THOMSEN HAS TRIED AMENDING HIS PROPOSAL I TOLD THE CITY THEY COULD TAKE THE MONEY NOW BUT THE INTEREST WOULD GO TO ME UNTIL I DIED AND THEN THE STREET WOULD BE NAMED AFTER ME AFTER I WAS DEAD THE CITY STILL SAID NO IT WAS A DECISION ENDORSED BY MOST DANES WHO BELIEVE IN JANTELOVEN BLENDING INTO THE EGALITARIAN SOCIETY AND NOT BEING SELFPROMOTERS HE'S VERY CLEVER AND HE JUST WANTS PUBLICITY SAYS OLE JOHANSSON WHO WORKS AT A SPORTINGGOODS SHOP ON NORREBROGADE IT'S JUST NOT RIGHT TO BUY A STREET NOT EVERYONE AGREES ESPECIALLY IN A COUNTRY WHERE INCOME TAX STARTS AT 50 AND JUMPS TO 68 FOR EARNINGS ABOVE 36600 SOME SAY HIS CASH IS A LOT TO SNUB IN RETURN FOR CHANGING A FEW STREET SIGNS THE CITY NEEDS THE MONEY SAYS RUTH JESSEN WHO OWNS A WOMEN'S CLOTHING STORE ON NORREBROGADE HE WANTS TO GIVE THE MONEY AND THE CITY SHOULD TAKE IT DOES SHE RESENT THE BILLIONAIRE FOR FLEEING FRIGID COPENHAGEN FOR A SUNNY MEDITERRANEAN TAX HAVEN SHE LOOKS OUT AT A MISERABLE DRIZZLE AND REPLIES NOT AT ALL IF I HAD THE MONEY I'D BE THERE TOO 9302030021 930203 EUROPE A SPECIAL REPORT THE NEXT DECADE IF WHAT'S PAST IS PROLOGUE EUROPE'S RECENT HISTORY SUGGESTS PLENTY OF DRAMA AHEAD A MARKET THAT'S FINALLY COMMON IN MORE THAN NAME AND A BERLIN WALL SLEDGEHAMMERED INTO SOUVENIRS A TUNNEL WAITING TO SPEED TRAFFIC BENEATH THE ENGLISH CHANNEL AND A PORN STAR WITH A TERM IN THE ITALIAN PARLIAMENT ON HER RESUME THE COLLAPSE OF COMMUNISM IN THE EAST AND A NERVOUS WATCHFULNESS ONCE AGAIN OVER A CITY CALLED SARAJEVO IF EUROPE SEEMS IN MANY WAYS TO HAVE AGED A CENTURY OVER THE PAST 10 YEARS WHAT MIGHT THE NEXT DECADE BRING WITH THE EUROPEAN COMMUNITY BEGINNING ITS NEW LIFE AS A UNIFIED MARKET WE ASKED OUR REPORTERS TO IMAGINE HOW BRITAIN AND THE CONTINENT WILL LOOK IN THE YEAR 2003 IN MAKING THEIR PREDICTIONS THEY DREW ON THE ADVICE CONSIDERED OPINIONS AND AT TIMES ROUGH GUESSES OF SPECIALISTS FROM AROUND THE WORLD MAINLY THOUGH THEY RELIED ON THEIR OWN EXPERIENCE IN EUROPE OVER THE PAST 10 TUMULTUOUS YEARS THE SCALE AND SCOPE OF THE CHANGES WE FORESEE IN POLITICS SOCIETY BUSINESS ECONOMICS AND CULTURE ARE ENORMOUS BUT THEY ARE NO MORE SO THAN THE TRANSFORMATIONS EUROPE HAS LATELY WITNESSED IN JANUARY OF 1983 FOR INSTANCE THE SOVIET UNION'S DYNAMIC NEW LEADER A FORMER KGB BOSS NAMED YURI ANDROPOV WAS OUTLINING SWEEPING REFORMS TITO'S HEIRS WERE HOLDING YUGOSLAVIA TOGETHER AND MARTIAL LAW GRIPPED POLAND VICE PRESIDENT GEORGE BUSH WAS IN WEST GERMANY TO REINFORCE THE NORTH ATLANTIC TREATY ORGANIZATION'S WILL TO ACCEPT MEDIUMRANGE MISSLES BACK THEN TOO THE EC COMPRISED JUST 10 MEMBERS BELGIUM FRANCE GERMANY ITALY LUXEMBOURG THE NETHERLANDS DENMARK IRELAND THE UNITED KINGDOM AND GREECE AND ONLY 19 EUROPEAN COUNTRIES COULD BOAST OF REGULAR FAIR ELECTIONS AND A MARKET DEMOCRACY THERE WAS LITTLE TALK OF A UNITED EUROPE OR OF A SINGLE MARKET APART FROM THE URGINGS OF BRITAIN'S MARGARET THATCHER WHOSE OWN COUNTRY WAS WRESTLING WITH THE IDEA OF PRIVATIZING ITS STATEHELD COMPANIES THE FRENCH GOVERNMENT MEANWHILE WAS STILL TRYING TO RUN MOST OF ITS BIG BUSINESSES AND FINANCE MINISTER JACQUES DELORS WAS DREAMING OF SOON BECOMING PRIME MINISTER IN PARIS NOT THE EC COMMISSION PRESIDENT IN BRUSSELS TODAY RADICAL CHANGE HAS INDEED COME TO WHAT WAS ONCE THE SOVIET UNION AND TO ALL OF EASTERN EUROPE AND NOW THE MAN WHO EVENTUALLY SUCCEEDED MR ANDROPOV AND PRESIDED OVER THE FIRST REAL PUSH MIKHAIL GORBACHEV HAS HIMSELF BEEN CAST ASIDE ALMOST EXACTLY 10 YEARS AFTER THAT VISIT TO GERMANY MR BUSH IN ONE OF HIS FINAL ACTS AS PRESIDENT SIGNED THE MOST COMPREHENSIVE STRATEGICMISSILE REDUCTION PACT IN HISTORY AND WHILE THE EC HAS GROWN BY JUST TWO MEMBERS PORTUGAL AND SPAIN MANY OF EUROPE'S OTHER DEMOCRACIES SOME 30 AT LAST COUNT DEPENDING ON HOW LOOSELY ONE DEFINES BOTH EUROPE AND DEMOCRACY ARE KNOCKING ON THE DOOR SOME THINGS OF COURSE REMAIN STRIKINGLY FAMILIAR OR HAVE COME FULL CIRCLE EUROPESSIMISM AND EUROSCLEROSIS CATCHWORDS USED TO DESCRIBE WESTERN EUROPE'S ECONOMIES TEN YEARS AGO ARE CREEPING BACK INTO THE LANGUAGE AS HIGH UNEMPLOYMENT PERSISTS AND RECESSION TAKES A TOLL ITALY'S GOVERNMENT IS AGAIN TROUBLED AND BRITAIN IS WONDERING WHAT TO DO WITH ITS COAL MINERS A WAVE OF IMMIGRANTS IS AGAIN CAUSING AN UPTICK IN SUPPORT FOR THE FAR RIGHT IN FRANCE AND GERMANY AND NOT SURPRISINGLY EC MEMBERS CONTINUE TO SQUABBLE OVER MONEY BY AND LARGE HOWEVER THE PICTURE IS PROFOUNDLY ALTERED THUS THE FORECASTS WE OFFER SHARE A COMMON BASE THOUGH ALL ARISE FROM EUROPE'S PRESENT THEY ARE SHAPED AS WELL BY THE MEMORIES OF ITS PAST WHILE MANY OF THE SCENARIOS MIGHT SEEM OUTRAGEOUS IT'S VERY LIKELY THAT JUDGING BY THE SPEED OF CHANGE OVER THE PAST 10 YEARS SOME MAY NOT BE OUTRAGEOUS ENOUGH WE'LL KNOW COME 2003 9302030020 930203 BUSINESS BRIEF AIRBORNE FREIGHT CORP SLOW ECONOMY PRICE WARS CUT PROFIT FOR QUARTER YEAR AIRBORNE FREIGHT CORP HURT BY A SLOW ECONOMY AND PRICE WARS IN THE EXPRESS SHIPPING BUSINESS SAID ITS NET INCOME DIPPED IN THE FOURTH QUARTER AND PLUMMETED FOR THE YEAR NET FOR THE PERIOD ENDING DEC 31 DECREASED 17 TO 55 MILLION OR 25 CENTS A SHARE FROM 66 MILLION OR 31 CENTS A SHARE A YEAR EARLIER REVENUE GREW 94 TO 3929 MILLION FROM 3592 MILLION FOR THE YEAR THE SEATTLE CONCERN SAID NET DROPPED 83 TO 52 MILLION OR 12 CENTS A SHARE FROM 30 MILLION OR 140 A SHARE REVENUE INCREASED 86 TO 148 BILLION FROM 137 BILLION CHIEF FINANCIAL OFFICER ROY LILJEBECK CALLED THE RESULTS VERY DISAPPOINTING BUT SAID AN IMPROVING ECONOMY STABLE PRICES AND A REDUCTION IN OPERATING EXPENSES POINTED TO A BETTER YEAR AIRBORNE STOCK ROSE 225 TO 2225 ON THE NEW YORK STOCK EXCHANGE 9302030019 930203 BUSINESS BRIEF GRUMMAN CORP UNIT CONFIRMS DAMAGES AWARDED TO DATA GENERAL GRUMMAN CORP'S GRUMMAN SYSTEMS SUPPORT CORP UNIT SAID DAMAGES AWARDED LAST WEEK TO DATA GENERAL CORP IN A SOFTWARE COPYRIGHT INFRINGEMENT SUIT WERE 523 MILLION AS DATA GENERAL HAD SAID GRUMMAN HAD DISPUTED THE 523 MILLION FIGURE DISAGREEING WITH AN INTEREST CALCULATION IT HAD CALCULATED THE FIGURE AT 427 MILLION BUT THE WOODBURY NY AEROSPACE AND ELECTRONICS COMPANY SAID IT RECEIVED A COPY OF THE JUDGMENT FROM THE US DISTRICT COURT IN BOSTON CONFIRMING THE FIGURE GRUMMAN IS APPEALING THE VERDICT 9302030018 930203 MARKETING BRIEF PEARSON PLC FIRM INTERESTED IN BUYING REED'S HOLDINGS IN BSKYB PEARSON PLC A BRITISH PUBLISHING GROUP SAID IT IS INTERESTED IN BUYING REED INTERNATIONAL PLC'S 366 STAKE IN BRITISH SKY BROADCASTING LTD A JOINT VENTURE SATELLITE TELEVISION COMPANY REED CONFIRMED IT IS NEGOTIATING WITH PEARSON'S OTHER PARTNERS IN THE SOCALLED BSKYB VENTURE CHARGEURS SA AND GRANADA GROUP PLC CHARGEURS IS A FRENCH HOLDING COMPANY GRANADA IS A BRITISHBASED LEISURE AND ENTERTAINMENT CONCERN AND REED IS A BRITISH PUBLISHER A PEARSON DIRECTOR SAID HE COULDN'T SAY WHAT PERCENTAGES OF THE STAKE WOULD BE ALLOCATED TO THE PARTNERS HOWEVER THE COST TO PEARSON INCLUDING INTEREST FEES AND COSTS ISN'T EXPECTED TO EXCEED 50 MILLION 73 MILLION PEARSON SAID ITS SHAREHOLDERS WILL BE ASKED LATER THIS MONTH TO APPROVE PLANS TO CONTINUE TO GUARANTEE A PROPORTION OF BSKYB'S BORROWINGS THE FINANCING ARRANGEMENTS PROPOSED ARE SIMILAR TO THE ONES THAT WILL EXPIRE FEB 23 IN MAY 1991 REED SAID IT HAD DECIDED NOT TO PUT FURTHER FUNDS INTO BSKYB BECAUSE ITS FIRST PRIORITY WAS TO ITS EXISTING PUBLISHING AND INFORMATION BUSINESSES NEWS CORP OWNS ABOUT 50 OF BSKYB 9302030017 930203 ROAMING YUAN CHINA'S NEWLY RICH GO ON INVESTING SPREE FROM PARIS TO PERU CITIZENS LOCAL AGENCIES BUY MILLS AND MALLS DODGING THE LONG ARM OF BEIJING THE PEOPLE'S ARMY CASHES IN BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL TO GET RICH IS GLORIOUS CHINESE LEADER DENG XIAOPING HAS SAID NOW HIS COUNTRY'S RISING WEALTH SEEMS TO BE BURNING A HOLE IN ITS POCKET WITH SCARCELY ANY FANFARE THE NOMINALLY COMMUNIST CHINESE ARE SPLURGING ON INTERNATIONAL INVESTMENTS FROM MANHATTAN TO TASMANIA ONE CHINESE COMPANY OWNS A GLITZY SHOPPING MALL OUTSIDE PARIS ANOTHER IS BUILDING ONE IN BANGKOK CHINESE ENTERPRISES HAVE BOUGHT STEEL MILLS IN THE US AND PAPER MILLS IN CANADA A BEIJING TRAVEL GROUP PLANS TO OPEN A THEME PARK IN KISSIMMEE FLA CALLED FLORIDA SPLENDID CHINA INC AND A SHENZHEN CONCERN HAS STARTED A SECURITIES HOUSE IN LOS ANGELES TO HELP CHINESE BUY US STOCKS AND BONDS IN DECEMBER BEIJINGBASED CAPITAL STEEL CORP PAID 312 MILLION TO OUTBID A CONSORTIUM OF JAPANESE AND LATIN AMERICAN INVESTORS FOR AN IRON MINE IN PERU THOUGH LIMA WELCOMED THE INVESTMENT CHINA HAS BEEN GETTING A HOSTILE RECEPTION FROM PERU'S SHINING PATH GUERRILLAS WHO CLAIM TO FOLLOW THE TEACHINGS OF CHINA'S LATE REVOLUTIONARY LEADER MAO TSETUNG THE SHINING PATH SET OFF A BOMB NEAR THE CHINESE EMBASSY ACCUSING BEIJING OF STRAYING FROM THE MAOIST WAY PLENTY OF DOMESTIC CRITICS TOO COMPLAIN THEY SAY CHINESE INVESTMENT ABROAD IS KEEPING VALUABLE CAPITAL FROM WHERE IT IS DESPERATELY NEEDED AT HOME BUT DEVALUATIONS AND POLITICAL UNCERTAINTIES COMBINED WITH PROSPECTS FOR BETTER RETURNS ABROAD STEER HARD CURRENCY OF INDIVIDUALS AND LOCAL GOVERNMENTS INTO STABLE ASSETS OVERSEAS CONVENIENTLY OUT OF REACH OF BEIJING'S OLDLINE APPARATCHIKS WHO MIGHT WANT TO TAX OR SEIZE IT PEOPLE NOW WANT TO MAKE MUCH PROFIT SAYS TONY TOWN A SELFSTYLED CHINESE INVESTMENT BANKER WHOSE FIRM IS A FINANCIAL BACKER OF AMERICAN EASTERN SECURITIES INC THE CHINESE SECURITIES FIRM IN LOS ANGELES' SKYSCRAPER DISTRICT WITH MORE THAN A DECADE OF LIBERALIZATION PROPELLING CHINA'S TRADEBASED ECONOMY ALONG AT A GROWTH RATE THAT HIT 12 LAST YEAR AN INCREASING NUMBER OF CHINESE COMPANIES AND INDIVIDUALS CAN AFFORD TO INVEST EVEN CHINA'S MIGHTY MILITARY MACHINE IS GETTING IN ON THE ACT PUBLIC RECORDS IN HONG KONG THE PRIME DESTINATION OF CHINESE MONEY SHOW THAT THE PEOPLE'S LIBERATION ARMY HAS SHELLED OUT TENS OF MILLIONS OF DOLLARS IN HARD CASH POSSIBLY FROM GLOBAL WEAPONS SALES DIPLOMATS SAY TO BUY PROPERTY IN THE COLONY TO A VAST DEVELOPING COUNTRY OF 11 BILLION THE FLOW OF OUTBOUND CAPITAL IS STILL A RELATIVE TRICKLE COMPARED WITH THE FLOOD OF MONEY CHINA BRINGS IN IN THE FIRST NINE MONTHS OF LAST YEAR CHINA SAYS FOREIGNERS SIGNED 27112 CONTRACTS VALUED AT 306 BILLION THOUGH MUCH OF THAT WAS IN THE FORM OF COMMITMENTS NOT ACTUAL INVESTMENT TOTAL APPROVED FOREIGN INVESTMENT STANDS AT 80 BILLION THAT'S STILL MAMMOTH SOUTH KOREA'S PEAK YEAR FOR FOREIGN MANUFACTURING INVESTMENTS WAS 1987 WHEN 321 PROJECTS INVOLVING 7726 MILLION WERE SIGNED BY COMPARISON CHINA'S OFFICIALLY SANCTIONED OUTWARD CAPITAL FLOW AMOUNTS TO HUNDREDS OF MILLIONS OF DOLLARS ANNUALLY SAYS AN OFFICIAL WHO MONITORS SUCH FLOWS BUT COUNTING UNSANCTIONED INVESTMENTS CHINESE EASILY INVEST SEVERAL BILLION DOLLARS ABROAD EACH YEAR ANALYSTS SAY THE EXISTENCE OF ANY OUTBOUND INVESTMENT SUGGESTS THAT CHINA HAS REACHED A NEW RUNG ON THE ECONOMIC LADDER CHINA'S ECONOMY SHOWS GREAT POTENTIAL WORLD BANK OFFICIALS PREDICT CHINA WILL BE THE THIRD LARGEST ECONOMY BY THE TURN OF THE CENTURY AND THE LARGEST BY 2020 THOSE PROJECTIONS ARE PARTLY A FUNCTION OF CHINA'S VAST POPULATION BUT ALSO REFLECT AN ECONOMIC GROWTH RATE THAT HAS AVERAGED 8 SINCE 1985 NOBODY BETTER SYMBOLIZES THE NEW INVESTING POWER IN CHINA THAN LARRY YUNG CHAIRMAN OF CITIC PACIFIC LTD THE PUBLICLY LISTED HONG KONG ARM OF BEIJING'S CHINA INTERNATIONAL TRUST & INVESTMENT CO LIKE OTHER MOGULS IN HONG KONG MR YUNG LIKES TO FLASH HIS CASH HIS PENTHOUSE APARTMENT IN A SOARING LUXURY TOWER OVERLOOKS THE ISLANDSPECKED SOUTH CHINA SEA WHEN HE ISN'T BEING CHAUFFEURED MR YUNG DRIVES A SILVER 145000 HONDA NSX SPORTS CAR THOUGH HIS WIFE HE CONFIDES PREFERS TO GLIDE AROUND TOWN IN THE MERCEDES HE GAVE HER ON WEEKENDS MR YUNG TROLLS FOR MARLIN FROM HIS GLEAMING WHITE CABIN CRUISER AT AGE 51 THE SALTANDPEPPERHAIRED MR YUNG IS A POWERFUL MAN IN A TOWN THAT IDOLIZES ITS RICH ALTHOUGH HE IS CHINESE HIS FATHER RONG YIREN IS CITIC'S CHAIRMAN AND A CONFIDANT OF MR DENG MR YUNG SAYS HE DOESN'T FEEL CONSTRAINED BY THE CONNECTION I AM NOT RED HE SAYS EMPHATICALLY HE DEFLECTS A STEADY PATTER OF CRITICISM FROM SOME ENVIOUS CHINESE HE SAYS HE MADE HIS PERSONAL FORTUNE INVESTING IN THE ELECTRONICS TRADE AFTER HE MOVED TO HONG KONG IN 1978 SPEAKING NEITHER ENGLISH NOR THE LOCAL CHINESE DIALECT CANTONESE AMONG HIS SAVVIER MOVES PERSONALLY TAKING A MINORITY STAKE IN THE CALIFORNIA SOFTWARE COMPANY MENTOR GRAPHICS CORP WHICH WENT PUBLIC IN 1984 AND BECAME A STOCKMARKET FAVORITE FOR A WHILE MR YUNG HAS SOLD HIS MENTOR HOLDINGS CITIC PACIFIC ITSELF HAS SNAPPED UP STAKES IN HONG KONG'S AIRLINES AND A BIG AUTOMOBILE DEALERSHIP IN EARLY JANUARY THE COMPANY SPENT ABOUT 15 BILLION BUYING STRATEGIC HOLDINGS IN HONG KONG'S TELECOMMUNICATIONS MONOPOLY AND SEVERAL POWER PLANTS CITIC PACIFIC STILL HAS NEARLY 100 MILLION IN CASH BUT THOUGH MR YUNG SAYS HE WOULDN'T RULE OUT INVESTING OVERSEAS HE SAYS HE WENT ON A SCOUTING TRIP TO NORTH AMERICA AND DISCOVERED I DIDN'T HAVE THE FEEL FOR IT CITIC IS ABOUT AS CLOSE AS MAINLAND INVESTORS GET TO BEING CHINA INC THOUGH UNLIKE JAPAN'S VASTLY LARGER BUYING SPREE OF THE LATE 1980S CHINA'S PURCHASES ARE STILL GENERALLY MODEST TENS OF MILLIONS OF DOLLARS NOT BILLIONS AND ATTRACT LITTLE ATTENTION OR HOSTILITY WITH MONEY GOING INTO FORGOTTEN STEEL MILLS NOT HOLLYWOOD MOST CHINESE INVESTMENTS ARE DONE VERY QUIETLY EVEN SECRETLY BY EXPORTORIENTED COMPANIES OR LOCAL GOVERNMENTS THAT HAVE ACCUMULATED CASH THROUGH FOREIGN TRADE ALONG WITH SOARING TRADE CHINESE EXPORTS ARE ESTIMATED AT 85 BILLION FOR 1992 CHINA'S INVESTORS BENEFIT FROM DECENTRALIZATION BEIJING ONCE TIGHTLY CONTROLLED EVERY ASPECT OF LIFE BUT ITS GRIP HAS LESSENED CONSIDERABLY IN THE SECOND DECADE OF THE ECONOMIC REFORMS LAUNCHED BY MR DENG IN 1979 STATEBACKED COMPANIES IN HONG KONG FOR INSTANCE ARE SUPPOSED TO REPORT TRANSACTIONS OF MORE THAN 10 MILLION BUT FEW DO ACCORDING TO A CHINESE OFFICIAL WHO TRIES TO HIS ENDLESS FRUSTRATION TO KEEP TRACK OF SPENDING INSTEAD MANY STATEBACKED CHINESE INVESTORS SET UP SHELL COMPANIES IN HONG KONG OR ELSEWHERE TO MAKE HIDDEN INVESTMENTS PERHAPS NOT COINCIDENTALLY BANK OF CHINA BEIJING'S MAIN INTERNATIONAL BANK HAS OPENED A CAYMAN ISLANDS BRANCH WHEN A CHINESEBACKED GROUP LAST YEAR PAID 490 MILLION FOR AN OPULENT OFFICE TOWER IN HONG KONG'S CENTRAL BUSINESS DISTRICT ONE OF THE BUYERS WAS A COMPANY NAMED APPROPRIATELY INTRICATE HOLDINGS LTD AND REGISTERED IN THE BRITISH VIRGIN ISLANDS AMONG THE INVESTORS HIDDEN BY SMOKESCREENS IN THAT DEAL CHINESE OFFICIALS CLAIM WERE TWO GUANGDONG PROVINCE GOVERNMENTS SHUNDE CITY AND NANHAI COUNTY OFFICIALS OF THE CONCERN THAT BOUGHT THE BUILDING WERE UNAVAILABLE FOR COMMENT THE NOTION OF GOVERNMENTS DISGUISING OVERSEAS INVESTMENTS MAY SMACK OF CORRUPTION CHINESE PRIVATELY CONCEDE BUT THEY SAY IT'S A SIGN OF SOMETHING MORE EVERSHARPER DEFIANCE BY LOCAL GOVERNMENTS OF THEIR ONCEPOWERFUL MASTERS IN BEIJING MUNICIPALITIES DON'T WANT TO BRING HARDCURRENCY EARNINGS HOME BEIJING WOULD REQUIRE THE MONEY TO BE CONVERTED INTO CHINESE YUAN AN UNSTABLE CURRENCY THAT HAS BEEN DEVALUED REPEATEDLY BESIDES FIVEYEAR PLANS AND OTHER NATIONAL STRATEGIES MIGHT REQUIRE LOCAL GOVERNMENTS TO SHARE THE WEALTH WITH THE CENTRAL GOVERNMENT OR PREVENT THEM FROM SPENDING AS THEY MIGHT WISH EVEN ON USEFUL PROJECTS SUCH AS SCHOOLS FINALLY AND MOST WORRISOME TO THE MUNICIPALITIES THEIR EARNINGS FROM TRADE MIGHT BE TAXED IT'S BETTER TO INVEST THE MONEY IN HONG KONG SAYS A CHINESE OFFICIAL WHO REPRESENTS A LOCAL GOVERNMENT AND IS UNHAPPY THAT THE CURRENT SYSTEM KEEPS MUCHNEEDED CAPITAL OUT OF THE COUNTRY BESIDES AS GRATEFUL BROKERS IN HONG KONG ARE QUICK TO POINT OUT INVESTING OUTSIDE BEIJING'S WATCHFUL GAZE ALLOWS CHINESE ENTERPRISES TO SPECULATE TWO YEARS AGO STATEBACKED BEIJING EVERBRIGHT HOLDINGS LTD SAID IT HAD GAMBLED 150 MILLION IN THE HONG KONG AND TOKYO MARKETS HINTING BUT NEVER ADMITTING THAT IT HAD TAKEN LOSSES LEGAL RECORDS SHOW THAT THE PEOPLE'S LIBERATION ARMY MADE A FAST 5 MILLION ON A HONG KONG PROPERTY DEAL THE BIGGEST SPECULATORS ARE THOUGHT TO BE THE MOST SECRETIVE INVESTORS SOME ARE CORRUPT OFFICIALS BUT MANY ARE CHILDREN OF POWERFUL COMMUNIST CADRES KNOWN AS PRINCELINGS IN HONG KONG NEWSPAPERS AMONG PRINCELINGS WHO HAVE DONE BUSINESS IN THE COLONY ARE MILITARY OFFICERS THE CHILDREN OF MINISTERS AND GOVERNORS EVEN RELATIVES OF CHINA'S AGING LEADERS MR DENG AND HIS ARCHRIVAL AND REFORM OPPONENT CHEN YUN THE PRINCELINGS ARE OFTEN INTENSELY COMPETITIVE AND WILLING TO EXPLOIT CONNECTIONS TO ACCUMULATE THE MONEY THEY NEED TO DO BUSINESS ABROAD ZHANG XIAOBIN A POLISHED 40YEAROLD WHO WEARS FINELY TAILORED DOUBLEBREASTED SUITS AND A THIN GOLD WATCH IS A CASE IN POINT THE SON OF A POWERFUL RETIRED MINISTER MR ZHANG IN 1985 WAS NAMED CHAIRMAN OF CHINA VENTURETECH INVESTMENTS CORP A STARTUP COMPANY BACKED BY THE STATE COMMISSION ON SCIENCE AND TECHNOLOGY PRACTICALLY THE FIRST THING IT DID WAS TO OPEN A HONG KONG OFFICE A TOP REPRESENTATIVE WAS CHEN WEILI CHEN YUN'S DAUGHTER AND A SISTER OF A SENIOR CHINESE CENTRAL BANKER WHEN MR ZHANG VISITS OFFICIALS IN BEIJING OR PROVINCIAL GOVERNORS WE EASILY GET IN AND CAN TALK TO THEM LIKE FRIENDS HE SAYS SOME OF THE GOVERNORS WHEN THEY WERE LITTLE KIDS MY FATHER TOOK CARE OF THEM THE CONNECTIONS SEEM TO HAVE HELPED THE COMPANY IS AMONG CHINA'S MOST SOPHISTICATED INTERNATIONALMINDED AND MONEYED WITH ABOUT 700 MILLION IN ASSETS IT INVESTS WIDELY IN CHINA HONG KONG AND SLOWLY ELSEWHERE IN ASIA THE COMPANY IS CREATING A VENTURECAPITAL FUND WITH GOLDMAN SACHS & CO AND PLANS TO OPEN A SECURITIES AND COMMODITIES DEALING FIRM ON WALL STREET MR ZHANG HAS OPENED A HEADHUNTING FIRM TO POACH WELLCONNECTED CHINESE FROM OTHER INTERNATIONALIZING CHINESE CONCERNS A LOT OF PEOPLE FALL INTO THE TRAP OF ASSUMING CHINA IS A MONOLITH AND THAT EVERY INVESTMENT FALLS INTO A NATIONAL STRATEGY SAYS JOHN MULCAHY DIRECTOR OF RESEARCH AT PEREGRINE INVESTMENTS HOLDINGS LTD A HONG KONG INVESTMENT HOUSE THAT'S PARTLY OWNED BY CHINESE COMPANIES INCLUDING CITIC IT'S NOT AT ALL THE TARGET OF MOST CHINESE INVESTMENT IS HONG KONG ALTHOUGH THE COLONY WILL REVERT TO BEIJING'S RULE IN HALF A DECADE IT IS AND PROBABLY WILL REMAIN A DYNAMIC FINANCIAL ENTREPOT WITH NO CURRENCY CONTROLS AND INSTANT ELECTRONIC ACCESS TO EVERY OTHER MAJOR MONEY CENTER IN THE WORLD THAT ATTRACTS SKITTISH CHINESE MONEY LOOKING FOR A SAFE HOME OFFICIAL CHINESE ESTIMATES PUT MAINLAND INVESTMENT IN HONG KONG AT 16 BILLION ABOUT WHAT JAPAN INVESTED IN THE US IN A SINGLE YEAR DURING TOKYO'S HEYDAY IN THE LATE 1980S SOME DIPLOMATS THINK THE AMOUNT IS LARGER ELSEWHERE TOO CHINESE INVESTMENTS ARE BEGINNING TO ADD UP ON A COST BASIS THE US ESTIMATED CHINESE INVESTMENT IN AMERICA AT JUST 117 MILLION AT THE END OF 1991 BUT MUCH OF CHINA'S SPENDING IS MADE THROUGH HONG KONG AND OFFSHORE VEHICLES THAT WOULDN'T SHOW UP IN STATISTICS AS CHINESE AFTER JAPAN AND AUSTRALIA HONG KONG IS THE THIRDBIGGEST ASIAN INVESTOR IN THE US IN AUSTRALIA ONE CHINESE INVESTMENT IN AN ALUMINUM SMELTER IS VALUED AT 742 MILLION FAR EXCEEDING THE 300 MILLION OR SO THAT AUSTRALIAN FIRMS HAVE INVESTED IN CHINA LIKE JAPAN IN ITS POSTWAR RECONSTRUCTION CHINA IS BUYING RAW MATERIALS THAT IT NEEDS FOR DEVELOPMENT AT HOME INCREASINGLY CHINESE STATE COMPANIES ALSO SEEK TO BUY FOR OTHER LONGTERM STRATEGIC REASONS TO BUILD MARKETING BASES SAY OR EVEN MANUFACTURING FACILITIES QINGDAO BREWERY CO THE MAKER OF TSINGTAO BEER CHINA'S MOST POPULAR BEER EXPORT HAS TOLD INVESTMENT BANKERS WHO HAVE BEEN TRYING TO HELP IT ARRANGE A FUNDRAISING SHARE ISSUE IN HONG KONG THAT IT WOULD LIKE TO USE THE MONEY TO SET UP AN INTERNATIONAL MARKETING ARM MEANWHILE CITIC TRADING CO A SUBSIDIARY OF CHINA INTERNATIONAL TRUST & INVESTMENT HAS SET UP A MARKETING ARM FOR CHINESEMADE CONSUMER ELECTRONIC PRODUCTS IN SOUTH AFRICA A COUNTRY WITH WHICH BEIJING DOESN'T MAINTAIN DIPLOMATIC LINKS EVENTUALLY IT HOPES TO BEGIN MANUFACTURING THERE FOR THE AFRICAN MARKET XU SHIWEI THE COMPANY'S PRESIDENT WAS QUOTED IN BEIJING'S SEMIOFFICIAL CHINA DAILY AS OFFERING THE FOLLOWING CAPITALIST MAXIM TO EXPLAIN THE INVESTMENT NO RISK NO PROFIT HIGH RISK HIGH PROFIT BUT PERHAPS THE ULTIMATE EVIDENCE THAT CHINESE INVESTORS HAVE ARRIVED IS THE STEADY PARADE OF WESTERN INVESTMENT BANKERS WHO TRAIPSE DAILY INTO INDUSTRIALIZED CITIES LIKE SHANGHAI AND CANTON OFFERING TO HELP CHINESE COMPANIES GARNER FOREIGN CURRENCY AND SPEND IT FLIGHTS TO CHINA ARE CROWDED WITH EXPENSIVELY SUITED BANKERS I'D SEE MY COMPETITORS IN EVERY HOTEL I STAYED IN SAYS ONE THAT'S DISCOURAGING FOR WOULDBE ADVISERS WHO MIGHT HAVE HOPED TO MAKE EASY MONEY FROM NEOPHYTE CHINESE BUSINESSES THE CHINESE KNOW WHAT THEY'RE DOING THE MORE COMPETITORS THE THINNER THE MARGINS HE SAYS AT THE MOMENT NINE BIG STATE COMPANIES ARE SEEKING TO RAISE 2 BILLION OR MORE THROUGH SHARE OFFERINGS ON HONG KONG'S STOCK MARKET MOST FIRST MUST COMPLETELY OVERHAUL THEIR BUSINESSES AND COMPLETELY REWORK THEIR ACCOUNTS IF YOU ADD UP ALL THE FORMS OF INVESTMENTBANKING BUSINESS IN CHINA IT'S MORE THAN SINGAPORE MALAYSIA AND THAILAND SAYS VINCENT LIEN CHINA MANAGER FOR SWISS BANK CORP'S SBCI SECURITIES UNIT IN HONG KONG IT'S MINDBOGGLING 9302030016 930203 CAR MAKERS FILE SUIT IN NEW YORK TO BLOCK LAW ON BUMPER LABEL NEW YORK DOMESTIC AND FOREIGN AUTO MAKERS JOINTLY FILED A FEDERAL LAWSUIT SEEKING TO BLOCK A STATE LAW THAT REQUIRES THEM TO STICK LABELS LISTING SAFETY INFORMATION ABOUT BUMPERS ON NEW CARS SOLD IN NEW YORK THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION AND THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS INC ARGUE THAT THE LAW IS UNCONSTITUTIONALLY VAGUE AND ATTEMPTS TO PREEMPT FEDERAL REGULATION OF CAR SAFETY THE AUTO MAKERS MAINTAIN THAT THE NEW LAW IS TOO EXPENSIVE AND THAT IT WILL COST AT LEAST 200000 TO TEST EACH CAR MODEL THEY ALSO ARGUE THAT THE LAW IS IMPRACTICAL BECAUSE IT SETS IMPRECISE AND LOOSE STANDARDS UNDER WHICH BUMPER SAFETY IS TO BE MEASURED THE AMERICAN ASSOCIATION INCLUDES FORD MOTOR CORP CHRYSLER CORP AND GENERAL MOTORS CORP THE US UNITS OF MOST MAJOR FOREIGN CAR MAKERS ARE MEMBERS OF THE INTERNATIONAL ASSOCIATION FEDERAL JUDGE WHITMAN KNAPP TURNED DOWN A REQUEST BY THE AUTO MAKERS TO DELAY IMPLEMENTATION OF THE NEW YORK LAW WHICH IS SUPPOSED TO TAKE EFFECT TODAY BUT JUDGE KNAPP SAID HE WOULD HOLD ADDITIONAL HEARINGS ON OBJECTIONS TO THE LAW WHICH REQUIRES CARS MANUFACTURED SINCE THE BEGINNING OF THIS YEAR TO BEAR A LABEL SPECIFYING THE GREATEST SPEEDS AT WHICH THE REAR AND FRONT BUMPERS WITHSTOOD MINIMAL DAMAGE IN COLLISION TESTS THE LABEL ALSO INCLUDES A WARNING WHICH READS THE STRONGER THE BUMPER THE LESS LIKELY THE CAR WILL REQUIRE REPAIR AFTER A LOWSPEED COLLISION A SPOKESMAN FOR ROBERT ABRAMS NEW YORK'S ATTORNEY GENERAL SAID THAT THE CAR MAKERS'S LAWSUIT IS UNFOUNDED THE SPOKESMAN ADDED THIS IS AN ATTEMPT BY THE AUTO MAKERS TO AVOID MEASURES THAT WOULD PROTECT CONSUMERS 9302030015 930203 ECONOMY HOUSE PANEL TOLD HEALTHCARE SYSTEM RUN BY GOVERNMENT WOULD BE CHEAPEST BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NATIONAL HEALTHINSURANCE SYSTEM FINANCED AND OPERATED BY THE FEDERAL GOVERNMENT MAY HAVE THE BEST CHANCE OF CONTROLLING MEDICAL COSTS THE DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE SUGGESTED TO A HOUSE HEALTH PANEL ROBERT REISCHAUER CBO DIRECTOR TESTIFYING BEFORE A HEARING OF THE HOUSE WAYS AND MEANS COMMITTEE'S HEALTH SUBCOMMITTEE ASSERTED THAT GOVERNMENTIMPOSED LIMITS ON MEDICAL EXPEDITURES COULD SUBSTANTIALLY REDUCE THE RATE OF INCREASE IN HEALTH SPENDING BUT HE ADDED THAT THE LIKELIHOOD OF SUCCESS INCREASES WITH A SINGLEPAYMENT MECHANISM RESTRICTIONS ON THE ABILITY TO PURCHASE HEALTH CARE OUTSIDE THE REGULATED SYSTEM AND GOVERNMENTSET BUDGETS FOR HOSPITALS AND OTHER INSTITUTIONS CURRENTLY THE ONLY SOCALLED SINGLEPAYER SYSTEMS ARE GOVERNMENTFINANCED SYSTEMS SUCH AS THE ONE IN CANADA PRESIDENT CLINTON HOWEVER HAS SAID HE WILL PROPOSE A CAP ON OVERALL HEALTH SPENDING IN THE US NOT A GOVERNMENTRUN SINGLEPAYER SYSTEM HE WANTS TO MAINTAIN A SYSTEM BASED ON MARKET COMPETITION WITH PRIVATE INSURERS AS WELL AS GOVERNMENT PROGRAMS THE HEALTHCARE TASK FORCE HEADED BY HIS WIFE HILLARY RODHAM CLINTON IS STILL WEIGHING VARIOUS OPTIONS MR CLINTON'S GOAL IS A BILL THAT PROVIDES HEALTH INSURANCE TO EVERYONE CURBS THE RELENTLESS RISE IN MEDICAL COSTS AND SHRINKS THE BULGING BUDGET DEFICIT MR REISCHAUER'S VIEWS ARE IMPORTANT BECAUSE HIS OFFICE ALONG WITH THE WHITE HOUSE BUDGET OFFICE WILL CALCULATE THE POTENTIAL SAVINGS OF THE PLAN PRESIDENT CLINTON WILL SUBMIT TO CONGRESS TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM IN ADDITION TO THE EXPENDITURE CAP MR CLINTON ADVOCATES AN APPROACH KNOWN AS MANAGED COMPETITION A SYSTEM WHEREBY LARGE PURCHASING NETWORKS NEGOTIATE FOR THE BEST HEALTH PLAN ON BEHALF OF EMPLOYERS AND INDIVIDUALS FORCING HEALTH PROVIDERS TO COMPETE FOR THEIR BUSINESS ON PRICE AND QUALITY THE CBO DIRECTOR TOLD THE PANEL THAT TO BE EFFECTIVE AT CURBING COSTS A MANAGED COMPETITION SYSTEM MUST INCLUDE ALL OF THE FOLLOWING INGREDIENTS UNIVERSAL HEALTH COVERAGE LARGE HEALTHINSURANCE PURCHASING COOPERATIVES THAT BARGAIN FOR HEALTH INSURANCE ON BEHALF OF CONSUMERS AND OVERSEE THE INSURANCE MARKET LIMITS ON THE AMOUNT OF HEALTH BENEFITS THAT WORKERS CAN RECEIVE TAXFREE FROM THEIR EMPLOYERS AND CAPS ON THE AMOUNT OF MONEY EMPLOYERS CAN CONTRIBUTE TO THEIR EMPLOYEES' HEALTH BENEFITS UNIFORM RELIABLE DATA ON COSTS OUTCOMES OF SPECIFIC MEDICAL SERVICES AND QUALITY FEWER INSURANCE FIRMS LIMITS ON AN INSURER'S ABILITY TO RAISE PREMIUMS BASED ON THE HEALTH OF BENEFICIARIES AND AN ACCURATE METHOD TO ADJUST FOR DIFFERENCES AMONG INSURERS IN THE HEALTH STATUS OF THEIR ENROLLEES TOGETHER MR REISCHAUER SAID THESE ELEMENTS COULD RESULT OVER TIME IN A REDUCTION IN THE RATE OF INCREASE IN NATIONAL HEALTH SPENDING BUT HE WARNED THAT OMITTING SOME OF THESE ELEMENTS FROM A PROPOSAL FOR MANAGED COMPETITION WOULD SIGNIFICANTLY LESSEN ITS POTENTIAL EFFECTIVENESS MR CLINTON HASN'T SAID WHETHER HE WILL PROPOSE THE MOST CONTROVERSIAL ELEMENT ON THAT LIST LIMITED TAX BREAKS FOR EMPLOYERPROVIDED HEALTH BENEFITS THE HEALTHCARE TASK FORCE IS STUDYING THE POSSIBILITY OF IMPOSING A SOCALLED TAX CAP BUT HASN'T YET MADE A DECISION IN AN INTERVIEW WITH THE WALL STREET JOURNAL IN DECEMBER MR CLINTON SAID HE WAS INCLINED TO AGREE WITH THE IDEA BUT HE HAS BEEN WARNED THAT THE POLITICAL CONSEQUENCES OF PROPOSING TO TAX SOME HEALTH BENEFITS COULD BE DIRE SEPARATELY A STUDY BY LEWINVHI INC A CONSULTING FIRM ESTIMATED THAT THE COUNTRY COULD SAVE AN AVERAGE OF 358 BILLION OVER THE NEXT FIVE YEARS BY REDUCING THE DEFENSIVE MEDICINE DOCTORS PRACTICE TO AVOID MALPRACTICE SUITS THE FIRM DEFINED DEFENSIVE MEDICINE AS TESTS AND PROCEDURES THAT HAVE EITHER NO BENEFIT OR A MARGINAL BENEFIT TO THE PATIENT AND ARE SIMPLY PERFORMED AS A PROTECTION AGAINST POTENTIAL MALPRACTICE CLAIMS THE GROUP CITED THE ADMINISTERING OF SKULL XRAYS TO ALL PATIENTS WITH HEAD INJURIES AND FETAL MONITORING OF ROUTINE BIRTHS AS EXAMPLES OF PROCEDURES THAT OFTEN AREN'T NECESSARY THE STUDY WAS RELEASED BY A COALITION OF HEALTH AND BUSINESS GROUPS PUSHING FOR REFORM OF THE MEDICAL MALPRACTICE SYSTEM THE COALITION ADVOCATES AMONG OTHER THINGS LIMITING THE DAMAGES THAT CAN BE AWARDED IN MEDICAL LIABILITY SUITS AND PROTECTING PHYSICIANS FROM MALPRACTICE CLAIMS IF THEY FOLLOW CERTAIN GUIDELINES 9302030014 930203 ECONOMY NOMINEE TO HEAD CIA SAYS HE'LL STUDY SHARING INTELLIGENCE DATA WITH FIRMS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON R JAMES WOOLSEY PRESIDENT CLINTON'S NOMINEE TO HEAD THE CENTRAL INTELLIGENCE AGENCY SAID HE PLANS TO LAUNCH A THOROUGH REVIEW TO DETERMINE WHETHER THE INTELLIGENCE COMMUNITY CAN BEGIN SHARING INFORMATION WITH AMERICAN BUSINESSES CALLING ECONOMIC INTELLIGENCE THE HOTTEST CURRENT TOPIC IN INTELLIGENCE POLICY MR WOOLSEY ACKNOWLEDGED AT HIS SENATE CONFIRMATION HEARING THAT THE SUBJECT IS FRAUGHT WITH COMPLEXITIES LEGAL DIFFICULTIES AND FOREIGN POLICY DIFFICULTIES BUT HE PROMISED THAT THE REVIEW WOULD TAKE PLACE EARLY IN THE ADMINISTRATION SOME US LAWMAKERS AND BUSINESS LEADERS HAVE ARGUED THAT THE INTELLIGENCE AGENCIES COULD IMPROVE AMERICA'S ECONOMIC COMPETITIVENESS AND JUSTIFY THEIR BUDGETS BY SHARING SOME OF THEIR VAST STORE OF INFORMATION WITH AMERICAN BUSINESSES UNTIL NOW HOWEVER SENIOR INTELLIGENCE OFFICIALS HAVE BALKED AT THE IDEA SOME WORRIED THAT THEY WOULD BE TURNED INTO INDUSTRIAL SPIES FOR HIRE OTHERS FEARED BEING DRAWN INTO LEGAL FIGHTS BETWEEN US COMPETITORS EVEN DEFINING AN AMERICAN BUSINESS IN A WORLD OF MULTINATIONAL CORPORATIONS THEY ARGUED WAS PROBLEMATIC AFTER CONDUCTING A SIMILAR REVIEW MR WOOLSEY'S PREDECESSOR ROBERT GATES DECIDED TO INCREASE ECONOMIC INTELLIGENCE GATHERING BUT TO FUNNEL THE INFORMATION SOLELY TO US GOVERNMENT OFFICIALS RESPONSIBLE FOR MAKING ECONOMIC POLICY OR CONDUCTING TRADE NEGOTIATIONS MR GATES DID AGREE TO ALERT AMERICAN COMPANIES WHEN THE CIA DETERMINED THEY WERE THE TARGET OF FOREIGN ESPIONAGE THOUGH MR WOOLSEY SUGGESTED THAT THE AGENCY COULD TEACH AMERICAN COMPANIES HOW TO GUARD THEIR SECRETS FROM FOREIGN SPIES BOTH PRIVATE AND PUBLIC NOT EVERYONE AROUND THE WORLD PLAYS THE GAME THE WAY WE DO SOME OF OUR FRIENDS AND ALLIES EVEN ARE INVOLVED IN ECONOMIC INTELLIGENCE OPERATIONS AGAINST OUR CORPORATIONS HE SAID I THINK OUR CORPORATIONS DESERVE TO UNDERSTAND HOW THEY CAN DEFEND THEMSELVES MR WOOLSEY WHO HAS SERVED DEMOCRATIC AND REPUBLICAN ADMINISTRATIONS IN A VARIETY OF POSITIONS MAINLY RELATED TO ARMSCONTROL ISSUES RECEIVED PLAUDITS FROM COMMITTEE MEMBERS SEVERAL SENATORS RAISED QUESTIONS ABOUT THE CLINTON ADMINISTRATION'S PLANS TO REDUCE THE ESTIMATED 30 BILLION ANNUAL INTELLIGENCE BUDGET AS PART OF A PROMISED REDUCTION IN DEFENSE SPENDING WHILE ACKNOWLEDGING THE NEED FOR SAVINGS MR WOOLSEY IDENTIFIED ONLY A FEW SPECIFIC AREAS FOR COSTCUTTING HE SUGGESTED THAT INTELLIGENCE AGENCIES COULD SHARE INFORMATION MORE EFFECTIVELY AND THAT SPY SATELLITES COULD BE USED MORE EFFICIENTLY HE DECLINED TO OFFER ANY FIGURES FOR PROJECTED BUDGET SAVINGS SAYING HE HADN'T YET DISCUSSED THE ISSUE WITH PRESIDENT CLINTON 9302030013 930203 FINANCING BUSINESS LENNAR CORP LENNAR CORP SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE SALE OF THREE MILLION COMMON SHARES THE MIAMI HOMEBUILDING COMPANY WHICH HAS ABOUT 205 MILLION SHARES OUTSTANDING SAID IT WOULD USE PROCEEDS FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING STRATEGIC PURCHASES LENNAR SAID ITS UNDERWRITERS LEHMAN BROTHERS AND MORGAN STANLEY & CO HAVE AN OVERALLOTMENT OPTION FOR AN ADDITIONAL 450000 SHARES 9302030012 930203 MARKETING & MEDIA PUBLISHERS POST VARIED EARNINGS FOR FOURTH PERIOD BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL THREE MAJOR NEWSPAPER PUBLISHERS REPORTED VARYING FOURTHQUARTER RESULTS LITTERED WITH SPECIAL CHARGES AND CREDITS KNIGHTRIDDER INC POSTED A DECLINE IN EARNINGS BECAUSE OF ACCOUNTINGRELATED CHARGES AND WASHINGTON POST CO REPORTED A DECREASE ATTRIBUTED TO INCREASED OPERATING COSTS AND NONRECURRING CHARGES TRIBUNE CO'S PROFIT WAS SHARPLY HIGHER BECAUSE OF A 123 MILLION NONRECURRING CREDIT FROM BASEBALL EXPANSION FEES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING KNIGHTRIDDER CLOSED DOWN 1375 TO 62125 AND TRIBUNE CLOSED DOWN 875 CENTS TO 5150 WASHINGTON POST CLASS B SHARES ROSE 1 CLOSING AT 235 IN BIG BOARD TRADING KNIGHTRIDDER'S OPERATING PROFIT JUMPED 15 LARGELY ON THE STRENGTH OF INCREASED CLASSIFIED ADVERTISING BUT THE GAIN WAS OFFSET BY CHARGES WHICH AMOUNTED TO 14 CENTS A SHARE AND INCLUDED 65 MILLION FOR CHANGING THE ACCOUNTING METHOD FOR THE COMPANY'S 1375 INVESTMENT IN A WASHINGTON NEWSPRINT MILL AND 66 MILLION FOR THE ADOPTION OF A NEW ACCOUNTING STANDARD FOR POSTRETIREMENT HEALTH BENEFITS DOUGLAS M ARTHUR AN ANALYST WITH KIDDER PEABODY & CO SAID INVESTORS PROBABLY REACTED TO KNIGHTRIDDER'S PREDICTION THAT IT WOULD INCUR HEAVY COSTS IN COMPLETING THE STARTUP OF A NEW PLANT IN PHILADELPHIA AND THAT FIRSTQUARTER EARNINGS WOULD BE BELOW LAST YEAR'S AS A RESULT THE COMPANY IS RUNNING TWO PLANTS TO PRINT ITS PHILADELPHIA NEWSPAPERS TRIBUNE CO'S SPECIAL CREDIT FROM BASEBALL EXPANSION FEES BOOSTED THE BROADCASTING AND ENTERTAINMENT GROUP'S OPERATING PROFIT BY 90 TO 372 MILLION BUT OPERATING PROFIT FOR THE NEWSPAPER PUBLISHING GROUP DECLINED 10 DESPITE HIGHER REVENUE TO 578 MILLION REFLECTING A 153 MILLION CHARGE FOR THE DISPOSITION OF THE PENINSULA TIMES TRIBUNE ADVERTISING REVENUE INCHED UP 1 AS A 7 RISE IN CLASSIFIED REVENUE OFFSET AN 8 DROP IN THE SMALLER CATEGORY OF GENERAL ADVERTISING REVENUE WASHINGTON POST CO SAID ITS NET INCOME DROPPED BECAUSE OF INCREASES IN OPERATING COSTS AS WELL AS SEVERAL NONRECURRING CHARGES AT ITS DIVISIONS INCLUDING CHARGES RELATED TO A RESTRUCTURING AT ITS STANLEY H KAPLAN EDUCATIONAL CENTER THE 1991 FOURTH QUARTER ALSO BENEFITED FROM A 10 MILLION TAX CREDIT RESULTING FROM A SETTLEMENT WITH THE INTERNAL REVENUE SERVICE EXCLUDING THIS CREDIT NET WOULD HAVE FALLEN 58 FROM 1991 REVENUE FOR THE QUARTER WHICH INCLUDED ONE WEEK MORE THAN 1991 ROSE 74 TO 3938 MILLION AT THE WASHINGTON POST NEWSPAPER REVENUE ROSE 98 BUT ADVERTISING INCHES FELL 14 THE COMPANY DIDN'T BREAK OUT FOURTHQUARTER OPERATING INCOME FOR ITS DIVISIONS 9302030011 930203 GM'S HUGHES GETS CONTRACT LOS ANGELES HUGHES AIRCRAFT CO SAID A UNIT WAS AWARDED A 75 MILLION CONTRACT BY UAL CORP'S UNITED AIRLINES TO SUPPLY FLIGHT SIMULATORS AND TRAINING SYSTEMS FOR ITS NEW BOEING 777 AND AIRBUS INDUSTRIE A320 JUMBO JET FLEETS HUGHES A UNIT OF GENERAL MOTORS CORP SAID THE CONTRACT WHICH INCLUDES OPTIONS IS FOR AS LONG AS FIVE YEARS THE WORK WILL BE PERFORMED BY HUGHES'S HUGHES REDIFFUSION SIMULATION LTD BASED IN CRAWLEY ENGLAND THE EQUIPMENT WILL BE INSTALLED AT UNITED'S DENVER FLIGHT TRAINING CENTER BY LATE 1994 9302030010 930203 BIG BOARD SEAT SELLS FOR 575000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 575000 UP 75000 FROM THE PREVIOUS SALE JAN 13 SEATS ARE CURRENTLY QUOTED AT 550000 BID AND 1 MILLION OFFERED 9302030009 930203 CORRECTIONS & AMPLIFICATIONS PERFORMANCE CALCULATIONS FOR SOME BOND FUNDS THAT PAY DIVIDENDS ON A DAILY BASIS WERE OVERSTATED IN THE NEW MUTUAL FUND TABLE IN YESTERDAY'S EDITIONS KEMPER SECURITIES INC THE BROKERAGE UNIT OF KEMPER CORP PLACED FIRST FOR THE 12 MONTHS THROUGH DECEMBER IN THE WALL STREET JOURNAL'S STUDY OF BROKERAGE FIRMS' ASSETALLOCATION ADVICE RAO CHALASANI IS THE UNIT'S INVESTMENT STRATEGIST IN YESTERDAY'S YOUR MONEY MATTERS COLUMN THE FIRM WAS IDENTIFIED AS KEMPER FINANCIAL SERVICES INC WHICH IS KEMPER CORP'S MONEYMANAGEMENT UNIT NIPPON STEEL CORP ANNOUNCED IT WILL BUY MINEBEA CO'S 60 STAKE IN NMB SEMICONDUCTOR CO IN MONDAY'S WORLD STOCK MARKETS COLUMN IT WAS INCORRECTLY REPORTED THAT NIPPON STEEL WOULD BUY MINEBEA SORTEC AN XRAY LITHOGRAPHY CONSORTIUM HAS RECEIVED 15 BILLION YEN ABOUT 12 MILLION A YEAR SINCE 1986 FROM THE JAPANESE GOVERNMENT AND 13 ELECTRONICS CONCERNS YESTERDAY'S IN THE LAB COLUMN INCORRECTLY PUT THE DOLLAR AMOUNT AT 1204 MILLION BROWN CAPITAL MANAGEMENT IS IN BALTIMORE YESTERDAY'S BUSINESS & RACE COLUMN INCORRECTLY SAID THE MONEY MANAGER WAS IN PHILADELPHIA WELLFLEET COMMUNICATIONS HASN'T ANY INTERESTS IN THE CELLULAR TELEPHONE BUSINESS THE BEDFORD MASS COMPANY MAKES NETWORKING PRODUCTS IN YESTERDAY'S OTC FOCUS COLUMN THE COMPANY WAS ERRONEOUSLY INCLUDED IN A LIST OF CELLULAR STOCKS THAT ROSE MONDAY IN OVERTHECOUNTER TRADING TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ARE COUSINS OF MONTREAL'S BRONFMAN FAMILY OWNERS OF SEAGRAM CO BUT THE TWO FAMILIES HAVE NO BUSINESS INTERESTS IN COMMON AN ARTICLE YESTERDAY CONCERNING THE TORONTO BRONFMAN FAMILY'S HOLDINGS FAILED TO NOTE THE LACK OF COMMON BUSINESS OPERATIONS 9302030008 930203 BIG THREE SET FEB 12 AS TARGET DATE FOR PETITION AGAINST ALL IMPORTED CARS BY PAUL INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE BIG THREE US AUTO MAKERS HAVE SET FEB 12 AS THE TARGET DATE FOR FILING A SWEEPING DUMPING COMPLAINT AGAINST ALL IMPORTED CARS FROM EUROPE AND SOUTH KOREA AS WELL AS FROM JAPAN THE TARGET DATE IS SUBJECT TO CHANGE PEOPLE CLOSE TO THE SITUATION SAID BUT THE INTENT TO FILE THE PETITION REMAINS ON TRACK DESPITE SERIOUS MISGIVINGS ABOUT THE WISDOM OF THE MOVE AMONG BIG THREE OFFICIALS SOME OF THEM BELIEVE THAT BY SEEKING STIFF PROTECTIONIST MEASURES THE FILING WILL IMPLY TO THE PUBLIC THAT DETROIT'S VEHICLES STILL CAN'T COMPETE WITH IMPORTS IN TERMS OF QUALITY AND PRICE THE JAPANESE HAVE RAISED PRICES MORE AGGRESSIVELY THAN WE HAVE OVER THE LAST COUPLE OF YEARS AND OUR PRICE ADVANTAGE NOW IS GREATER THAN EVER ONE BIG THREE OFFICIAL WHO ASKED NOT TO BE IDENTIFIED SAID SO WHY STIR THIS POT NOW DESPITE SUCH DISSENT THE DUMPING COMPLAINT HAS BACKING FROM THE CHIEF EXCECUTIVES OF THE BIG THREE WITH SPECIAL IMPETUS FROM FORD MOTOR CO'S CHAIRMAN HAROLD A RED POLING MR POLING AT AGE 67 IS A DOZEN YEARS OLDER THAN HIS COUNTERPARTS AT GENERAL MOTORS CORP AND CHRYSLER CORP HE BELONGS TO A GENERATION OF DETROIT EXECUTIVES WHO BELIEVE STRONGLY THAT THE JAPANESE OWE MUCH OF THEIR GAINS IN THE US CAR MARKET TO UNFAIR TRADING PRACTICES DUMPING IS THE SELLING OF A PRODUCT IN A FOREIGN MARKET AT A PRICE LOWER THAN THE DOMESTIC PRICE IF THE DUMPING PETITION IS FILED WITH FEDERAL TRADE OFFICIALS FEB 12 IT WILL COME IMMEDIATELY AFTER FORD AND GM POST BIG LOSSES FOR 1992 THE TWO LARGEST US CAR COMPANIES ARE SCHEDULED TO REPORT THEIR YEAREND RESULTS NEXT WEEK CHRYSLER RECENTLY REPORTED NET INCOME OF 723 MILLION OR 221 A SHARE FOR 1992 THE DUMPING FILING IT'S UNDERSTOOD WILL COVER ALL IMPORTED CARS BUT WON'T COVER TRUCKS IMPORTED PICKUP TRUCKS ALREADY ARE SUBJECT TO A 25 TARIFF AND THE BIG THREE ARE SEEKING TO HAVE THAT APPLIED TO MINIVANS AND SPORTUTILITY VEHICLES AS WELL THE 25 TARIFF IS A RELIC FROM A LONGAGO TRADE WAR IT WAS ESTABLISHED IN 1963 TO RETALIATE AGAINST EUROPEAN COUNTRIES FOR IMPOSING A DUTY ON ALL IMPORTED US BROILER CHICKENS THE BIG THREE SAYS ONE PERSON FAMILIAR WITH THEIR STRATEGY FEAR THAT PUTTING TRUCKS IN THE DUMPING COMPLAINT WOULD CALL UNWANTED ATTENTION TO A TARIFF THAT DETROIT WANTS RETAINED EVEN THOUGH ITS ORIGINAL PURPOSE HAS LONG SINCE EXPIRED LAST YEAR THE BIG THREE ACCUSED JAPANESE AUTO MAKERS OF DUMPING MINIVANS IN THE US BUT LOST THE CASE BECAUSE THEY WEREN'T ABLE TO PROVE THEY HAD SUFFERED ANY DAMAGE IN THE MEANTIME THOUGH THE JAPANESE SHARPLY RAISED THE PRICE OF THEIR MINIVANS AND SAW THEIR MARKET SHARE PLUNGE GIVING DETROIT WHAT AMOUNTED TO A DE FACTO VICTORY THE PLANNED NEW DUMPING PETITION MAY BE PRODUCING A SIMILAR RESULT EVEN BEFORE IT'S FILED LAST WEEK TOYOTA MOTOR CORP AND NISSAN MOTOR CO FOLLOWED FORD AND CHRYSLER IN ANNOUNCING PRICE INCREASES IN THE MIDDLE OF THE INDUSTRY'S MODEL YEAR ALTHOUGH THE JAPANESE WANT TO AVOID THE HANDICAP OF PAYING DUMPING DUTIES HIGHER PRICES MAY BE THE ONE THING THAT ALL CAR COMPANIES WOULD LIKE TO SEE MOST JAPANESE AUTO MAKERS ARE LOSING MONEY IN THE US RIGHT NOW ANALYSTS SAY AND THE CURRENT SLUMP IN THEIR HOMEMARKET SALES MAKES THIS DIFFICULT TO TAKE THE US AND JAPANESE MANUFACTURERS ARE SIGNALING TO EACH OTHER RIGHT NOW IF YOU RAISE PRICES WE'LL DO IT TOO' SAYS JOHN CASESA AUTO ANALYSTS AT WERTHEIM SCHRODER CO IN NEW YORK EVERYBODY IS IN SUCH INTENSE PAIN NOW THAT NOBODY CAN AFFORD ANOTHER TWO YEARS LIKE '91 AND '92 9302030007 930203 HEALTH SCIENTISTS DOUBT PHONES CAUSE BRAIN TUMORS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SCIENTISTS TOLD LAWMAKERS THAT THEY DON'T BELIEVE PORTABLE CELLULAR TELEPHONES CAUSE BRAIN TUMORS BUT THAT THE POPULAR PHONES MIGHT POSE A SMALL RISK OF SPEEDING THE GROWTH OF EXISTING CANCERS SCIENTISTS FROM THE NATIONAL CANCER INSTITUTE THE FOOD AND DRUG ADMINISTRATION THE ENVIRONMENTAL PROTECTION AGENCY AND THE FEDERAL COMMUNICATIONS COMMISSION SAID THERE WAS NO REASON FOR PUBLIC PANIC ABOUT CELLULAR TELEPHONE SAFETY BUT THEY SAID FURTHER STUDIES ARE NEEDED TO GET A BETTER GAUGE ON THE EXTENT TO WHICH RADIOFREQUENCY ELECTROMAGNETIC FIELDS EMITTED BY THE PHONES CAUSE ANY DAMAGE THERE IS NO NEED FOR PEOPLE TO SPEND TWO HOURS ON A CELLULAR PHONE SAID MAYS SWYCORD CHIEF OF THE RADIATION BIOLOGY BRANCH OF THE FDA'S CENTER FOR DEVICES AND RADIOLOGICAL HEALTH SHORT CONVERSATIONS HE SAID MEAN THAT LESS RISK IF THERE IS A RISK WILL BE INCURRED RICHARD ADAMSON A RESEARCHER WITH THE NATIONAL CANCER INSTITUTE URGED MODERATION IN ALL THINGS BUT SAID THE CANCER RISK IF ANY FROM CELLULAR PHONES APPEARED TO BE LOW TO START WITH HE SAID 11800 PEOPLE IN THE US ARE EXPECTED TO DIE THIS YEAR FROM BRAIN CANCER WHILE LUNG CANCER WILL CLAIM SOME 146000 NONETHELESS HE SAID THE INSTITUTE IS EMBARKING ON A MAJOR STUDY OF CANCER PATIENTS ASKING THEM ABOUT THEIR EXPOSURE TO MANY SUBSTANCES AND SITUATIONS INCLUDING THEIR USE OF CELLULAR PHONES PUBLIC PANIC OVER THE SAFETY OF CELLULAR PHONES ERUPTED LAST MONTH AFTER DAVID REYNARD OF ST PETERSBURG FLA APPEARED ON THE LARRY KING SHOW AND OTHER NATIONAL TELEVISION PROGRAMS TO DISCUSS A LAWSUIT THAT CLAIMS HIS WIFE'S USE OF HER PORTABLE PHONE CAUSED OR CONTRIBUTED TO HER FATAL BRAIN CANCER CONCERN HAS FOCUSED ON PORTABLE PHONES WHICH HAVE A BUILTIN ANTENNA AND NOT ON CELLULAR PHONES THAT ARE INSTALLED IN CARS STEPHEN CLEARY A PHYSIOLOGY AND BIOPHYSICS PROFESSOR AT THE MEDICAL COLLEGE OF VIRGINIA SAID THAT IN THE LABORATORY CANCER CELLS GREW FASTER WHEN EXPOSED TO RADIO FREQUENCIES AN EFFECT THAT LASTED SEVERAL DAYS NONETHELESS HE SAID HE DOESN'T BELIEVE PORTABLE PHONES CAUSE CANCER DEFENDING THE INDUSTRY QUIRINO BALZANO A MOTOROLA INC VICE PRESIDENT AND RESEARCHER SAID IT TOOK SEVEN YEARS OF DELIBERATIONS TO DEVELOP THE CURRENT SAFETY STANDARDS MOREOVER HE SAID MOST HANDHELD PHONES IN USE TODAY OPERATE WELL WITHIN NEW TOUGHER STANDARDS THOMAS STANLEY CHIEF ENGINEER FOR THE FCC WHICH REGULATES CELLULAR PHONES AND DAVID KLEFMAN DEPUTY DIRECTOR OF THE EPA'S OFFICE OF RESEARCH DEVELOPMENT ALSO AGREED ON THE NEED FOR ADDITIONAL STUDIES MR KLEFMAN SAID THE EPA IS PLANNING A WORKSHOP IN APRIL ON RADIO FREQUENCY EXPOSURE A TOPIC THE AGENCY HAD DROPPED IN THE MID1980S BECAUSE OF CHANGING PRIORITIES AND BUDGETS CHAIRMAN EDWARD MARKEY OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE SAID THAT STUDIES INTO HEALTH EFFECTS ARE CRITICAL GIVEN THE PREDICTED BOOM IN WIRELESS COMMUNICATIONS PORTABLE PHONE SAFETY HE SAID IS PARTICULARLY IMPORTANT BECAUSE USERS MUST HOLD THE PHONES TO THEIR HEADS MR MARKEY A MASSACHUSETTS DEMOCRAT ALREADY HAS ASKED CONGRESS'S GENERAL ACCOUNTING OFFICE TO PULL TOGETHER A REPORT ON THE CURRENT STATE OF SCIENTIFIC KNOWLEDGE ABOUT PORTABLE PHONE SAFETY YESTERDAY CELLULAR STOCK PRICES CONTINUED TO RECOVER FROM LAST WEEK'S SHARP LOSSES MCCAW CELLULAR COMMUNICATIONS INC CLOSED UP 1875 TO 3525 AND MOTOROLA CLOSED UP 50 CENTS TO 5425 PRICES FOR THE REGIONAL BELL TELEPHONE COMPANIES WERE MIXED BUT SOUTHWESTERN BELL CORP WHICH HAS INVESTED HEAVILY IN CELLULAR PROPERTIES ROSE 75 CENTS TO 71 9302030006 930203 ENTERPRISE BAGEL BAKERS ARE ON A ROLL IN HEARTLAND BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WHEN HE ARRIVED FROM BURLINGTON VT TO OPEN A BAGEL SHOP HERE MARTY SCHWARTZ THOUGHT HE HAD FOUND VIRGIN TERRITORY ALL I KNEW WAS HERE WAS A CITY WHERE YOU COULDN'T GET A GOOD BAGEL HE SAYS BUT NOW HIS SCHWARTZ'S BAGELS OPENED A YEAR AGO TODAY IS BESIEGED NOT JUST BY LOCAL COMPETITION BUT BY A SECOND INTERLOPER FROM BURLINGTON BRUEGGER'S CORP WHICH LAST MONTH OPENED A STORE JUST A BLOCK DOWN THE STREET PITTSBURGH MAY SEEM AN UNLIKELY SPOT FOR A BAGEL WAR BUT THE DOUGHNUTSHAPED ROLLS ARE CROPPING UP IN HEARTLAND CITIES WHERE MOST PEOPLE HADN'T TASTED ONE FIVE YEARS AGO AND MAY NOT EVEN KNOW OF THE BAGEL'S ORIGINS AS A STAPLE OF JEWISH CUISINE IN CENTRAL EUROPE NOW HAVING CUT THEIR TEETH ON THE FROZEN VARIETY FOLKS ARE DEVELOPING A TASTE FOR BAGELS FRESH FROM THE OVEN BRUEGGER'S ONE OF THE MOST AGGRESSIVE OPERATORS HAS 64 STORES 29 OF THEM OPENED SINCE THE BEGINNING OF 1992 INCLUDING OUTLETS IN IOWA MINNESOTA AND MISSOURI BAGEL BROTHERS STARTED IN BUFFALO BY BOB AND JAY GERSHBERG IN 1976 HAS DOUBLED TO EIGHT STORES SINCE EARLY 1991 IN KANSAS CITY MO STEVEN ELLENBERG AND ENZO DIPEDE ARE TEARING OUT WALLS TO EXPAND THEIR BAGELWORKS CAFE WHILE OVERSEEING A WHOLESALE BUSINESS THAT FEEDS MISSOURI AND FIVE SURROUNDING STATES NATIONWIDE THE COMMERCE DEPARTMENT ESTIMATES THAT MORE THAN 800 MILLION POUNDS OF BAGELS WERE SOLD LAST YEAR AMOUNTING TO NEARLY FIVE BILLION BAGELS NO ONE TRACKS THE SALES OF FREESTANDING BAGEL BAKERIES WHICH ARE GENERALLY LOCAL MOMANDPOP OPERATIONS BUT GROCERYSTORE SALES OF FRESH AND FROZEN BAGELS IN THE LAST QUARTER OF 1992 SHOT UP 14 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC A MARKETRESEARCH COMPANY THE RISE OF FRESHBAKED BAGELS APPEARS TO BE TAKING A BITE FROM THE FROZEN PRODUCT SOLD THROUGH SUPERMARKETS SALES OF FROZEN BAGELS LAST YEAR GREW AT A 6 CLIP BETTER THAN OTHER FROZEN BREAD PRODUCTS SUCH AS MUFFINS BUT A FAR CRY FROM THE 34 GROWTH RATE FOR SUPERMARKET SALES OF FRESH BAGELS ACCORDING TO INFORMATION RESOURCES TOM BAGEL COAUTHOR WITH HIS WIFE MARILYN OF A RECENT BOOK THE BAGEL BIBLE SAYS FRESHBAKED BAGELS ARE THE WAY GOD INTENDED THEM TO BE ADDS MR BAGEL THE NAME HAS BEEN IN THE FAMILY FOR GENERATIONS IF YOU'RE IN A TOWN WITH NO BAGEL BAKERIES YOU MIGHT BUY FROZEN BUT YOU HAVE TO POP THEM IN THE TOASTER TO TRY TO BRING THEM BACK TO LIFE SALES OF BOTH FRESH AND FROZEN BAGELS HAVE BEEN FUELED BY THE RISING HEALTH CONSCIOUSNESS OF CONSUMERS A CROISSANT IS TASTY BUT IT HAS ALL THOSE LAYERS OF FAT SAYS DARRELL BRENSING VICE PRESIDENT EDUCATION OF THE AMERICAN INSTITUTE OF BAKING FANS NOTE THAT BAGELS HAVE LITTLE FAT OR CHOLESTEROL AROUND 250 CALORIES COMPARED WITH 400 FOR MANY MUFFINS AND A PROTEIN CONTENT AVERAGING 10 OF THE FEDERAL GOVERNMENT'S RECOMMENDED DAILY ALLOWANCE ADDS KERRIE LESSING A UNIVERSITY OF PITTSBURGH STUDENT WHO BOUGHT A DOZEN BAGELS AT SCHWARTZ'S ON A RECENT MORNING IT FILLS YOU UP GIVES YOU SOME GOOD CARBOHYDRATES AND DOESN'T LEAVE YOU WITH A GREASY NAPKIN BRUEGGER'S IS MAKING PROBABLY THE BIGGEST BET THAT THE COUNTRY WILL EMBRACE FRESHBAKED BAGELS NORD BRUE 48 AND MICHAEL DRESSELL 43 WHO FOUNDED AND STILL CONTROL THE CLOSELY HELD COMPANY SAY THEY WANT TO EXPAND THEIR 64 STORES TO AS MANY AS 1000 COMPANYOWNED OUTLETS BY THE YEAR 2000 AND TO ADD FRANCHISED STORES AT THE SAME TIME THAT WOULD RAISE ANNUAL SALES TO NEARLY 1 BILLION FROM ABOUT 50 MILLION TODAY THE CHAIN GOT ITS START IN 1983 WHEN MR BRUE AN IOWA NATIVE PRACTICING LAW IN BURLINGTON AND MR DRESSELL WHO PLAYS VIOLA IN THE VERMONT SYMPHONY ORCHESTRA DECIDED TO GO INTO BUSINESS TOGETHER AND LOOKED AROUND FOR AN UNTAPPED FASTFOOD MARKET THE PAIR SETTLED ON BAGELS BUT THEY SPURNED BURLINGTON AS A TEST MARKET BECAUSE SAYS MR BRUE IT'S A VERY YUPPIE UNIVERSITY TOWN THAT WOULDN'T HAVE PROVED THE POTENTIAL OF THE MAINSTREAM MARKET INSTEAD THEY LOOKED ACROSS THE NEW YORK STATE LINE TO ALBANY THE COMPANY NOW HAS 11 STORES THERE BUT IT EXPANDED ONLY SLOWLY SORTING OUT ITS BAKING SERVICE AND MANAGEMENT TECHNIQUES BRUEGGER'S HAS DEVELOPED WHAT AMOUNTS TO A JUSTINTIME BAGEL FACTORY TO SERVE THE 12 CITIES WHERE IT OPERATES BRUEGGER'S HAS SIX REGIONAL PLANTS THAT MIX THE BAGEL DOUGH FORM THE BAGELS AND REFRIGERATE THEM SO THEY PROOF OR RISE SLOWLY AFTER A DAY OR SO REFRIGERATED TRUCKS TAKE TRAYS OF RAW BAGELS TO THE STORES WHERE THEY ARE FIRST BOILED AND THEN BAKED TO BE SERVED FRESH THREE YEARS AGO THE COMPANY ALSO BOUGHT THE VERMONT DAIRY THAT MAKES ITS CREAM CHEESE TO ENSURE A STEADY SUPPLY BUT THE BAGEL BUSINESS ISN'T NECESSARILY A CAKEWALK AS THE PROBLEMS OF ONE OPERATOR INDICATE SKOLNIKS INC A 19STORE CHAIN BASED IN OKLAHOMA CITY HAD A 21 MILLION LOSS ON SALES OF 10 MILLION IN THE YEAR ENDED JULY 25 AFTER AN AGGRESSIVE BUT UNSUCCESSFUL CAMPAIGN TO OPEN RESTAURANTS IN SHOPPING MALLS COMPETITORS SAY ONE OF THE CHAIN'S MISTAKES WAS ITS FOCUS ON MALL STORES PEOPLE WON'T GO INTO A MALL JUST TO GET A DOZEN BAGELS SAYS BOB GERSHBERG OF BAGEL BROTHERS MALLS ALSO TEND TO HAVE WEAK TRAFFIC AT BREAKFAST PRIME TIME FOR WALKIN SALES MOREOVER SKOLNIKS'S BIG RESTAURANTS AS LARGE AS 3000 SQUARE FEET COMPARED WITH UNDER 1000 FOR BRUEGGER'S CARRY HIGHER OVERHEAD BILL WILLIAMS A SAN ANTONIO INVESTOR WHO NOW CONTROLS THE COMPANY AIMS TO TURN SKOLNIKS AROUND BY SELLING BAGELS WHOLESALE TO GROCERY STORES AIRLINES AND RESTAURANTS SINCE FALL 1991 THE COMPANY HAS ALSO CLOSED EIGHT RESTAURANTS AND IS EMPHASIZING STRIP SHOPPING CENTERS OVER MALL STORES SUCH EFFORTS APPEAR TO BE ENDING THE LOSSES DURING THE 13 WEEKS ENDED OCT 24 THE COMPANY REPORTED A PROFIT OF 18500 OR ONE CENT A SHARE IN MOREESTABLISHED BAGEL MARKETS BAKERS LOOKING FOR AN EDGE ARE SCURRYING FOR NICHES IN A MARYLAND SUBURB OF WASHINGTON BETHESDA BAGEL FORMS ITS BAGELS BY HAND AND DOES THE WORK IN VIEW OF CUSTOMERS FOR THE SHOW OF IT SAYS OWNER STEPHEN FLEISHMAN WITH THE BAGEL BOOM HAVE COME NEW FLAVORS AND VARIETIES BRUEGGER'S DOESN'T FLINCH AT SERVING BAGELS WITH SUCH DECIDEDLY NONKOSHER TRIMMINGS AS HAM THE SEATTLE BAGEL BAKERY SELLS A PESTO FLAVOR AROUND MIAMI THREE STORES STARTED BY MIAMI DOLPHINS LINEBACKER JOHN OFFERDAHL OFFER CHOICES INCLUDING CHOCOLATE CHIP AND CRANBERRYORANGENUT AND IN SOUTHERN CALIFORNIA SHOPS HAVE BEEN KNOWN TO MIX IN JALAPENOS YET IN MOST OF THE COUNTRY'S HEARTLAND BASIC BAGELS ARE THE RULE AND CUSTOMERS SEEM HAPPY TO TAKE THINGS ONE STEP AT A TIME CONSIDER JASON P JUSTMAN A SEVENYEAROLD WHO BURST INTO TEARS WHILE BITING INTO HIS FIRST BAGEL SESAME IN BRUEGGER'S STORE HERE HE THOUGHT HE WAS GETTING A DOUGHNUT SAYS JASON'S MOTHER EILEEN AS SHE DABS AT HIS CHEEKS 9302030005 930203 DEBATABLE DEVICE PRIVACY TECHNOLOGY COLLIDE IN A DISPUTE OVER AN INTIMATE TEST A LAWSUIT MAY DETERMINE HOW FAR OFFICIALS CAN GO TO PROBE SEXUAL IMPULSES A COP'S STRUGGLE FOR HIS JOB BY STEPHEN J ADLER STAFF REPORTER OF THE WALL STREET JOURNAL OLD TOWN MAINE PROPER CITIZENS OF THIS TIDY COMMUNITY HAVE SPENT MUCH OF THE PAST FIVE YEARS OBSESSED WITH A TOPIC THAT MANY ARE TOO EMBARRASSED EVEN TO TALK ABOUT AT ISSUE IS WHETHER IT'S FAIR FOR THE CITY TO REQUIRE POLICE OFFICER NORMAN HARRINGTON TO TAKE A PARTICULARLY INTIMATE PHYSICAL TEST TO DETERMINE WHETHER HE IS SEXUALLY ATTRACTED TO CHILDREN IN NOVEMBER 1988 AFTER MR HARRINGTON'S NAME WAS RAISED IN A LOCAL SEXABUSE CASE CITY OFFICIALS TOLD HIM THAT HE HAD TO SUBMIT TO THE PENILE PLETHYSMOGRAPH AS THE TEST IS CALLED IN ORDER TO KEEP HIS JOB ALTHOUGH THERE WASN'T ANY CREDIBLE EVIDENCE AGAINST MR HARRINGTON THE DISTRICT ATTORNEY SAID HE WANTED TO BE SURE THE OFFICER DIDN'T HAVE DEVIANT THOUGHTS THAT MIGHT LEAD TO DANGEROUS BEHAVIOR BUT MR HARRINGTON REFUSED TO COOPERATE AFTER HE LEARNED EXACTLY WHAT THE TEST ENTAILED AND HE WAS FIRED SINCE THEN THE 46YEAROLD CAREER COP HAS DRIVEN A TRUCK FISHED THE LOCAL STREAMS AND ENTERED PSYCHOTHERAPY TO COMBAT HIS MOUNTING DEPRESSION HE HAS ALSO EMBARKED ON A GRUELING LEGAL BATTLE TO SALVAGE HIS JOB AND THE REMAINS OF HIS REPUTATION IF I WAS JUST A GARBAGE HANDLER AND THEY SAID I COULDN'T HAVE MY JOB I WOULD FIGHT FOR IT SAYS MR HARRINGTON WHO FOR NOW IS BACK ON THE FORCE UNDER AN ARBITRATOR'S RULING MR HARRINGTON'S CIVILRIGHTS LAWSUIT AGAINST THE CITY WHICH HAS NOW BEEN APPROVED BY A FEDERAL APPEALS COURT FOR TRIAL IS ABOUT PRIVACY AND THE LIMITS OF GOVERNMENT POWER AND IT COULD HELP DETERMINE HOW FAR PUBLIC OFFICIALS CAN GO IN INVESTIGATING THE INTIMATE THOUGHTS OF CITIZENS IT IS ALSO LIKELY TO DRAW MORE ATTENTION TO THE PENILE PLETHYSMOGRAPH AN EXTRAORDINARY DEVICE THAT HAS ESCAPED SCRUTINY OUTSIDE THE INSULAR WORLD OF THERAPISTS WHO TREAT SEX OFFENDERS THE PLETHYSMOGRAPH IS A TEST THAT REQUIRES THAT A NARROW METAL OR RUBBER BAND BE ATTACHED AROUND THE SUBJECT'S PENIS HE THEN VIEWS SLIDES OF NAKED ADULTS AND CHILDREN SOMETIMES AUDIOTAPES OR VIDEOTAPES ARE USED INSTEAD OF THE SLIDES THE BAND STRETCHES TO REFLECT ANY CHANGE IN THE CIRCUMFERENCE OF THE PENIS MERCURY IN THE BAND SERVES AS A CONDUCTOR THAT TRANSMITS THE RESULTS ELECTRICALLY TO A VIDEO SCREEN OR AUTOMATICPEN RECORDER COMPUTER SOFTWARE ENABLES THE TESTER TO DEVELOP GRAPHS THAT SHOW THE DEGREE OF AROUSAL TO EACH STIMULUS AND INDICATE WHETHER THE SUBJECT IS MORE AROUSED BY MALES THAN BY FEMALES BY CHILDREN THAN BY ADULTS BY COERCED THAN BY CONSENSUAL SEX THERAPISTS SAY THAT THE PGRAPH AS MANY CALL IT ASSISTS THEM IN DETERMINING WHETHER SOMEONE WHO HAS COMMITTED A SEX CRIME HAS A PATTERN OF DEVIANT SEXUAL INTERESTS THIS HELPS THERAPISTS DEVISE PROPER TREATMENT PROGRAMS AND LETS THEM MEASURE THEIR PROGRESS OR LACK THEREOF IN REDUCING THE INDIVIDUAL'S SEXUAL ATTRACTION TO CHILDREN OR TO VIOLENT SITUATIONS THE PGRAPH WAS DEVELOPED IN THE MID1960S IN CZECHOSLOVAKIA TO THWART DRAFT RESISTERS WHO CLAIMED THEY WERE GAY AND GAINED POPULARITY AMONG US AND CANADIAN SEX THERAPISTS IN THE 1970S AND 1980S AS DEMAND INCREASED FARRALL INSTRUMENTS INC GRAND ISLAND NEB BEGAN MANUFACTURING THE DEVICE COMMERCIALLY AND HAS SUPPLIED MOST OF THE 400 UNITS NOW IN USE IN SEXOFFENDER TREATMENT CENTERS IN SOME 40 STATES FARRALL HAS ALSO EXPORTED THE PGRAPH TO CHINA HONG KONG NORWAY BRITAIN BRAZIL AND SPAIN YET EVEN THE TEST'S PROPONENTS INCLUDING ITS MAKERS SAY THEY ARE TROUBLED OVER MISUSE OF THE TEST BY PEOPLE WHO DON'T UNDERSTAND ITS LIMITATIONS IT IS AN AWFUL PROBLEM SAYS WILLIAM R FARRALL PRESIDENT OF THE PRIVATE COMPANY THE PGRAPH ACCURATELY MEASURES SEXUAL DESIRE ITS MAKERS SAY BUT IS TOTALLY UNABLE TO DETERMINE WHETHER SOMEONE HAS COMMITTED AN ACTUAL OFFENSE OR IS LIKELY TO DO SO THIS IS BECAUSE THE TEST CAN'T DETERMINE WHETHER A PERSON WILL ACT ON HIS IMPULSES THAT IS THE PROVINCE OF SORCERERS AND WITCHES NOT A PSYCHOLOGIST'S SAYS WILLIAM PITHERS PAST PRESIDENT OF THE ASSOCIATION FOR THE TREATMENT OF SEXUAL ABUSERS NONETHELESS BECAUSE NO ONE REGULATES HOW THE PGRAPH CAN BE USED AND BECAUSE PUBLIC UNDERSTANDING OF IT IS SO LIMITED THE DEVICE IS EMERGING FROM BEHIND THE LOCKED DOORS OF ADULT TREATMENT CENTERS AND INTO THE BROADER LEGAL ARENA FOR EXAMPLE FATHERS ARE BEING SUBJECTED TO PGRAPHS IN CHILDCUSTODY DISPUTES AS LAWYERS SEEK TO PROVE THAT THEY ARE OR AREN'T LIKELY TO ABUSE THEIR CHILDREN LOCAL CONTROVERSIES HAVE ALSO ARISEN OVER THE PGRAPH'S USE IN SENTENCING AND PAROLE DECISIONS FUELING THE DEVICE'S GREATER USE IS THE FACT THAT FARRALL AND TWO SMALLER COMPETITORS AGGRESSIVELY MARKET THEIR PRODUCTS RANGING IN PRICE FROM 1000 TO 8500 AT PSYCHOLOGICAL CONFERENCES WHERE THEY BRING DEMONSTRATION EQUIPMENT MR FARRALL THE COMPANY PRESIDENT DECLARES THAT I'M ONE OF THOSE SCIENTISTS WHO BELIEVE THAT PEOPLE WHO MANUFACTURE THE INSTRUMENTS HAVE SOME RESPONSIBILITY AS TO HOW THEY'RE USED AND OFFERS FREE TRAINING TO ANYONE WHO WILL COME TO NEBRASKA TO GET IT BUT COURTS ALL OVER THE COUNTRY ARE STILL CONFRONTING ASSERTIONS THAT THE DEVICE CAN HELP DETERMINE GUILT OR INNOCENCE AND PREDICT FUTURE BEHAVIOR WHILE MOST COURTS HAVE REJECTED PGRAPH RESULTS AS EVIDENCE THERE'S NO UNIFORM RULE ON THE SUBJECT AND THE ISSUE KEEPS ARISING UNDER NEW CIRCUMSTANCES IN A RECENT DUTCHESS COUNTY NY CASE A PSYCHOLOGIST ADMINISTERED THE PGRAPH TO A FATHER WHEN THE COUNTY WAS SEEKING TO TERMINATE HIS PARENTAL RIGHTS THE THERAPIST TOLD THE COURT THAT BECAUSE THE MAN DID NOT BECOME SEXUALLY AROUSED BY EITHER MALE OR FEMALE CHILDREN HIS FIVEYEAROLD SON WOULD NOT BE AT RISK LIVING WITH HIS FATHER THE COUNTY SOCIAL SERVICE DEPARTMENT CALLED IN A LEADING EXPERT ON THE DEVICE JUDITH BECKER WHO SUCCESSFULLY REFUTED THE FINDING ON THE GROUND THAT THE MACHINE CAN'T PREDICT FUTURE BEHAVIOR A FURTHER CONCERN ABOUT THE TEST ONE SELDOM DISCUSSED BY THERAPISTS IS THE INTENSE EMBARRASSMENT IT CAN CAUSE TO THOSE WHO ARE SUBJECTED TO IT MANY PSYCHOLOGISTS WHO ADMINISTER THE PGRAPH ADMIT THEY HAVE NEVER BEEN TESTED THEMSELVES BECAUSE THEY'D BE MORTIFIED TO LET COLLEAGUES SEE THE RESULTS YET SINCE THERAPISTS GIVING THE TEST USUALLY DO SO ON PEOPLE CONVICTED OF HEINOUS CRIMES PRIVACY CONCERNS SELDOM ARE AIRED PHOENIX IS ONE PLACE WHERE SUCH ISSUES HAVE BEEN RAISED THERE IT WAS REPORTED IN THE LOCAL PRESS LAST SUMMER A HOSPITAL USED THE DEVICE ON BOYS AS YOUNG AS 10 WHO HAD ABUSED OTHER CHILDREN RESEARCH IN THE FIELD HADN'T DETERMINED WHETHER THE TEST WAS USEFUL OR POSSIBLY EVEN EMOTIONALLY HARMFUL WHEN GIVEN TO PREPUBESCENT BOYS STATE LEGISLATORS AND OTHERS DECRIED THE PRACTICE AS BARBARIC AND DEGRADING AND IT WAS DISCONTINUED LAST SUMMER OFFICER HARRINGTON'S CASE HOWEVER RAISES THE MOST TROUBLING PRIVACY CONCERNS PRECISELY BECAUSE HE CAN'T BE CLASSIFIED AS AN OFFENDER HE HAS BEEN NEITHER INDICTED NOR CONVICTED THERE IS ONLY AN UNSUBSTANTIATED ALLEGATION THE VIETNAM VETERAN JOINED THE 13MEMBER OLD TOWN POLICE FORCE IN 1978 AND ALWAYS GOT GOOD REVIEWS FROM SUPERVISORS HE STARTED A WELLRECEIVED DRUGEDUCATION PROGRAM IN THE LOCAL SCHOOLS AND WAS NEVER ACCUSED OF ANY IMPROPRIETY WITH HIS OWN THREE KIDS OR ANYONE ELSE'S BUT ON MAY 13 1987 MR HARRINGTON WAS INFORMED THAT A BROTHER AND SISTER IN THEIR EARLY TEENS HAD ACCUSED HIM OF PARTICIPATING IN A SEX PARTY WITH THEM IN BANGOR 12 MILES SOUTH OF THIS TOWN OF 8000 THE DISTRICT ATTORNEY'S OFFICE ALSO TOLD CITY OFFICIALS THAT MR HARRINGTON WAS UNDER INVESTIGATION AND CITY MANAGER DAVID COLE SUSPENDED HIM INITIALLY WITH PAY PENDING THE OUTCOME THE CHARGES WERE ON THEIR FACE BIZARRE THAT A UNIFORMED MR HARRINGTON HAD DRIVEN TO A BANGOR HOUSE IN A POLICE CAR ACCOMPANIED BY HIS WIFE AND SON AND HAD TOLD THE CHILDREN WE'VE COME TO HAVE SEX THERE WAS NO PHYSICAL EVIDENCE LINKING HIM TO THE SCENE AND NO ONE ELSE COULD BE FOUND WHO SAW HIM THERE HIS EXWIFE THEY HAD BEEN DIVORCED FOR YEARS DIDN'T MEET THE CHILDREN'S DESCRIPTION AND A POLICE DISPATCHING SERGEANT SAID IT WOULD HAVE BEEN NEARLY IMPOSSIBLE FOR THE EVENTS DESCRIBED TO HAVE TAKEN PLACE BECAUSE HE WAS IN ALMOST CONSTANT COMMUNICATION WITH HIS OFFICERS MR HARRINGTON IT WOULD TURN OUT WAS JUST ONE OF 170 PEOPLE WHO HAD BEEN NAMED BY A TOTAL OF FOUR SIBLINGS AMID A BLITZ OF ACCUSATIONS THAT EVENTUALLY STRAINED CREDULITY WHILE NINE INDIVIDUALS CLOSE TO THE CHILDREN INCLUDING THEIR PARENTS ULTIMATELY WERE PROSECUTED AND CONVICTED NO RELIABLE EVIDENCE EVER EMERGED AGAINST ANYONE FROM THE LARGER CIRCLE WHICH CAME TO INCLUDE PROMINENT PUBLIC FIGURES INCLUDING A US SENATOR AND BANGOR POLICE NEVER FOUND ANY SUPPORT FOR THE ALLEGATIONS AGAINST MR HARRINGTON ALTHOUGH NO ONE TOLD OLD TOWN OFFICIALS THAT UNTIL YEARS LATER INDEED NINE MONTHS AFTER THE ACCUSATIONS WERE MADE PENOBSCOT COUNTY DISTRICT ATTORNEY R CHRISTOPHER ALMY HAD NEITHER SOUGHT A GRANDJURY INDICTMENT NOR PROVIDED ANY INFORMATION TO OLD TOWN OFFICIALS AS TO THE PROGRESS OF THE INVESTIGATION MEANWHILE MR HARRINGTON WAS WITHOUT A JOB AND LIVING UNDER A CLOUD THIS DIDN'T SEEM FAIR TO CITY MANAGER COLE WHO MET WITH MR ALMY TO TRY TO FIND OUT WHAT HAD HAPPENED TO THE CASE MR ALMY TOLD HIM MR COLE LATER TESTIFIED BEFORE AN ARBITRATOR THAT WHILE NO INDICTMENT WAS IMMINENT THE DISTRICT ATTORNEY STILL HAD SERIOUS CONCERNS ABOUT OFFICER HARRINGTON THAT HE RECOMMENDED THAT OFFICER HARRINGTON TAKE A SEX OFFENDERS PROFILE AS A RESULT MR COLE ASKED AND LATER ORDERED MR HARRINGTON TO SEE A LOCAL SEXABUSE THERAPIST UNIVERSITY OF MAINE PSYCHOLOGIST WILLIAM O'DONOHUE AND TO TAKE WHATEVER TESTS DR O'DONOHUE PRESCRIBED MR COLE SAYS HE HAD NEVER HEARD OF THE PGRAPH AND DIDN'T INITIALLY KNOW IT WAS AMONG THE TESTS TO BE USED HE SAYS HE MERELY SENT THE OFFICER TO SOMEONE RECOGNIZED AS HAVING AN EXPERTISE IN THIS AREA WHAT THIS INDIVIDUAL CHOSE TO DO IN GIVING HIS EVALUATION WAS A MATTER OF HIS PROFESSIONAL JUDGMENT SIMILARLY MR ALMY SAYS HE HADN'T STUDIED THE PLETHYSMOGRAPH AND DIDN'T KNOW WHETHER IT WAS EFFECTIVE IN PREDICTING DEVIANT BEHAVIOR BUT HE ADDS HE FELT AN OBLIGATION TO THE COMMUNITY TO MAKE SURE THAT MR HARRINGTON WAS SUITABLE TO BE A COP ONE REASON MR ALMY SAYS WAS THAT A WRITTEN PSYCHOLOGICAL TEST HAD INDICATED THAT MR HARRINGTON'S PERSONALITY PROFILE WAS SIMILAR TO THAT OF ABOUT 6 OF KNOWN CHILD ABUSERS WARREN SILVER MR HARRINGTON'S LAWYER RESPONDS THAT THE EXAM ADMINISTERED BY THE THERAPIST WHO WAS TREATING THE ABUSED CHILDREN PROVED NEITHER THAT THE OFFICER WAS SEXUALLY ATTRACTED TO CHILDREN NOR THAT HE POSED A DANGER TO THEM ON NOV 14 1988 18 MONTHS AFTER HE WAS ACCUSED MR HARRINGTON FINALLY SHOWED UP FOR THE PLETHYSMOGRAPH HE SAYS THAT BY THEN HE HAD DECIDED HE WANTED NOTHING MORE THAN TO BE INDICTED SO HE COULD FIGHT THE CHARGES IN COURT BUT WHEN DR O'DONOHUE TOOK HIM TO THE PENILE PLETHYSMOGRAPH ROOM AND DESCRIBED THE TEST MR HARRINGTON BALKED I WAS KIND OF HOSTILE HE NOW SAYS I TOLD HIM IT WAS CRUDE AND DISGUSTING IT SOUNDED TO ME LIKE SOME SORT OF MEDIEVAL THING I TOLD HIM IF HE COULD FIND ANY PLACE IN THE WORLD WHERE THIS TEST WAS REQUIRED FOR A JOB IN LAW ENFORCEMENT I WOULD TAKE IT I STILL HAVEN'T HEARD FROM HIM DR O'DONOHUE WHO NOW TEACHES AT NORTHERN ILLINOIS UNIVERSITY IN DEKALB ILL SAYS HE CAN'T COMMENT BECAUSE OF PATIENTTHERAPIST CONFIDENTIALITY AS THREATENED MR HARRINGTON WAS FIRED SOME IN OLD TOWN TOOK HIS REFUSAL TO TAKE THE TEST AS A SIGN OF GUILT FIGURING THAT AN INNOCENT PERSON WOULD HAVE DONE ANYTHING IN HIS POWER TO CLEAR HIMSELF BUT OTHERS RALLIED TO HIS SUPPORT SOME 2000 LOCAL RESIDENTS EVENTUALLY SIGNED A PETITION BACKING HIM EXPERTS IN THE FIELD AGREE THAT REQUIRING MR HARRINGTON TO TAKE THE TEST AS A CONDITION OF EMPLOYMENT WAS A CLASSIC EXAMPLE OF AN ABUSE OF THE PLETHYSMOGRAPH WHAT WAS DISREGARDED SAYS DR PITHERS IS THE FACT THAT THERE ARE MANY PEOPLE WALKING AROUND WHO HAVE NEVER ABUSED CHILDREN YET WHO HAVE A SEXUAL INTEREST IN CHILDREN OR VIOLENT SEX SINCE MR HARRINGTON WAS FIRED HIS CASE HAS TAKEN A TORTUOUS PATH THROUGH EMPLOYMENT ARBITRATION PUBLIC HEARINGS A MAGISTRATE'S COURT A FEDERAL DISTRICT COURT AND THE FEDERAL APPEALS COURT IN BOSTON EVEN AFTER THE ARBITRATOR ORDERED MR HARRINGTON REINSTATED MR ALMY REFUSED TO PROSECUTE ANYONE HE ARRESTED RENDERING HIM USELESS AS A PATROL COP AFTER THE LOCAL PETITION DRIVE THOUGH THE STATE ATTORNEY GENERAL STEPPED IN TO PROVIDE MR HARRINGTON WITH A PERSONAL PROSECUTOR AN ARRANGEMENT THE CITY CONSIDERS AWKWARD BUT MANAGEABLE SO AFTER FIVE YEARS OFF THE POLICE FORCE MR HARRINGTON LAST SPRING GOT HIS JOB BACK FOR AT LEAST AS LONG AS THE CURRENT ARRANGEMENT WITH THE ATTORNEY GENERAL HOLDS DONALD O'HALLORAN WHO HEADED THE BANGOR POLICE'S INVESTIGATION THAT FOUND NO SUPPORT FOR THE ALLEGATIONS AGAINST MR HARRINGTON SEEMS PERPLEXED BY THE DISTRICT ATTORNEY'S CONTINUING CONCERN MY THEORY WAS YOU EITHER HAD ENOUGH TO PROSECUTE A CASE OR YOU DIDN'T AND IF IT'S NOT THERE IT'S NOT THERE SAYS MR O'HALLORAN WHO AS IT HAPPENS IS NOW OLD TOWN CHIEF OF POLICE AND THUS MR HARRINGTON'S BOSS MR ALMY CONTINUES TO SAY HE HAS DOUBTS ABOUT MR HARRINGTON'S CHARACTER AND ADDS THAT ANOTHER REASON HE CAN'T PROSECUTE THE OFFICER'S CASES IS THAT HE AND THE OFFICER ARE IN LITIGATION AGAINST EACH OTHER BUT ASKED WHY HE STILL WANTS THE PGRAPH PERFORMED WHEN THE LEADING SEX THERAPISTS HAVE ASSERTED THAT IT CAN'T DETERMINE GUILT OR INNOCENCE OR PREDICT BEHAVIOR MR ALMY PAUSES AND SAYS YOU MAKE A GOOD POINT THE LATEST LEGAL DEVELOPMENT IN THE CASE WAS A DECISION BY THE US COURT OF APPEALS IN BOSTON LAST MONTH PERMITTING MR HARRINGTON TO GO FORWARD WITH HIS FEDERAL LAWSUIT SEEKING DAMAGES AGAINST THE CITY OF OLD TOWN AND ITS MANAGER MR COLE MR ALMY AS A PROSECUTOR WAS FOUND TO HAVE ABSOLUTE IMMUNITY PRIVACY LAW IN THE AREA OF UNWANTED BODILY MANIPULATIONS REMAINS MURKY A CRIMINAL SUSPECT CAN BE REQUIRED TO TAKE A BLOOD TEST THAT MIGHT AID INVESTIGATORS FOR EXAMPLE BUT CAN'T BE COMPELLED TO UNDERGO SURGERY UNDER GENERAL ANESTHESIA TO REMOVE A BULLET FOR USE AS EVIDENCE COURTS WEIGH BOTH THE DEGREE OF THE INTRUSION AND THE NEED FOR THE SPECIFIC EVIDENCE IT ISN'T CLEAR HOW THE PGRAPH FITS UNDER THOSE CRITERIA NOW THAT THE APPEALS COURT HAS CLEARED HIS CASE FOR TRIAL MR HARRINGTON WILL FINALLY HAVE A CHANCE TO GAIN PUBLIC VINDICATION AND SOME PEACE OF MIND HE SAYS HE STILL HAS THE IMAGE OF THE PLETHYSMOGRAPH IN HIS HEAD AND SOMETIMES WAKES UP AT 3 AM TO CONTEMPLATE HIS ORDEAL IT DOESN'T GO AWAY HE SAYS AT THE END I HOPE I CAN MAKE IT GO AWAY 9302030004 930203 CREDIT MARKETS TREASURY BONDS NOTES FALL AFTER OVERSEAS LOSSES AND MORE SIGNS OF STRENGTH IN US ECONOMY BY THOMAS D LAURICELLA STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRICES OF TREASURY NOTES AND BONDS ENDED MORE THAN 1/2 POINT LOWER IN SOME CASES AS DROPS IN OVERSEAS TRADING HELD THROUGH THE DAY AFTER THE RELEASE OF MORE DATA SUGGESTING STRENGTH IN THE US ECONOMY THE BENCHMARK 30YEAR TREASURY BOND DROPPED MORE THAN 1/2 POINT OR MORE THAN 500 FOR A BOND WITH 1000 FACE VALUE TO 104 1/2 FOR A YIELD OF 724 UP FROM 720 ON MONDAY THE 10YEAR NOTE DROPPED MORE THAN 3/8 POINT TO 99 17/32 TO YIELD 642 UP FROM 636 MEANWHILE MORE THAN 1 BILLION OF NEW MUNICIPAL BONDS WERE SOLD AS PRICES IN THAT MARKET ENDED NARROWLY MIXED PRICES OF MOST JUNK BONDS WERE LITTLE CHANGED WHILE PRICES OF INVESTMENTGRADE CORPORATE BONDS DROPPED 1/8 POINT TO 3/8 POINT MOST PRICE DECLINES IN THE TREASURY MARKET OCCURRED BEFORE THE NEW YORK MARKETS GOT UP AND RUNNING IN FAR EAST TRADING THERE WAS SELLING OF OFFTHERUN 30YEAR BONDS OR OLDER ISSUES BECAUSE THE MARKET FOR SUCH BONDS CAN BE ILLIQUID ESPECIALLY IN OVERSEAS TRADING LOSSES AT THE LONG END WERE EXAGGERATED THE MAXIMUM DAMAGE PARTICULARLY TO THE LONG END OCCURRED OVERSEAS SAID WILLIAM V SULLIVAN JR A SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC BUT UNLIKE IN THE PAST FEW WEEKS WHEN PULLBACKS WERE FOLLOWED BY AN IMMEDIATE RUSH OF BUYING LOSSES WERE SUSTAINED THROUGHOUT THE DAY AS THE MARKET WAS HIT WITH MORE DATA SHOWING STRENGTH IN THE ECONOMY YESTERDAY'S FIRST NEWS ON THE ECONOMY WAS THE GOVERNMENT'S INDEX OF LEADING INDICATORS WHICH ROSE 19 IN DECEMBER ABOVE AVERAGE FORECASTS OF AN INCREASE OF 16 THEN AT MIDMORNING THE COMMERCE DEPARTMENT REPORTED SINGLEFAMILY NEW HOME SALES JUMPED 63 IN DECEMBER TO A 656000 ANNUAL RATE JUST BEFORE THE CLOSE OF TRADING THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED THAT CHAIN AND DEPARTMENT STORE SALES FOR ALL OF JANUARY ROSE 46 FROM DECEMBER THE ECONOMIC DATA RELEASED YESTERDAY FOLLOWED CLOSELY OTHER RECENT REPORTS SUGGESTING A BETTER PACE OF ECONOMIC GROWTH THOSE INCLUDE LAST FRIDAY'S 91 RISE IN DURABLE GOODS ORDERS FOR DECEMBER AND THE SOLID GAIN IN THE JANUARY NATIONAL ASSOCIATION OF PURCHASING MANAGERS' INDEX REPORTED ON MONDAY THE NUMBERS LOOK GOOD THERE'S NO QUESTION ABOUT IT SAID BRIAN JONES AN ECONOMIST AT SALOMON BROTHERS INC MR JONES NOTED THAT DATA HAVE BEEN ALMOST UNIFORMLY ON THE STRONGER SIDE OF EXPECTATIONS IT'S EXTREMELY ENCOURAGING YET ONCE AGAIN THE ECONOMIC NEWS FAILED TO HAVE A MAJOR IMPACT ON PRICES THE MARKET TOOK THEM IN STRIDE SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO IN PRINCETON NJ THERE WAS LITTLE SELLING ON THE ECONOMIC NEWS BUT SAID MR SULLIVAN OF DEAN WITTER AGAINST THE DATA BACKDROP NOBODY FELT THE NEED TO STEP IN AND BE A BUYER AS A RESULT PRICES OF MOST TREASURY ISSUES LANGUISHED AT LOWER LEVELS THROUGHOUT THE DAY AND MANY ENDED AT THEIR WORST LEVELS WHILE THE MARKET MOSTLY SHRUGGED OFF THE DATA TRADERS CONTINUED TO FOCUS ON UNANSWERED QUESTIONS ABOUT THE PROBABLE SHAPE OF PRESIDENT CLINTON'S ECONOMIC PACKAGE AND THE LIKELY MAKEUP OF NEXT WEEK'S REFUNDING AUCTIONS ALL THIS WILL BE MADE KNOWN IN DUE TIME BUT UNTIL THESE FACTORS ARE IT'S HARD FOR THE MARKET TO FOCUS ON ECONOMIC FUNDAMENTALS SAID MR JONES OF SALOMON BROTHERS THE ANSWER TO ONE OF THOSE QUESTIONS COULD COME THIS AFTERNOON WHEN THE TREASURY DEPARTMENT ANNOUNCES THE SIZE OF THE QUARTERLY REFUNDING FOR WEEKS MARKET PARTICIPANTS HAVE BEEN SPECULATING ABOUT WHETHER THE TREASURY DEPARTMENT WOULD ATTEMPT TO REDUCE LONGTERM INTEREST RATES AND CUT THE COST OF FUNDING THE DEFICIT BY SLASHING THE AMOUNT OF BONDS IT SELLS AND INSTEAD OFFERING MORE SHORTTERM DEBT BUT COMMENTS FRIDAY BY DEPUTY TREASURY SECRETARY ROGER ALTMAN THAT THE DEPARTMENT WAS NOT ON THE VERGE OF A DECISION HELPED CONVINCE MOST ANALYSTS THAT A MAJOR CHANGE IS UNLIKELY TODAY MOST FORECASTERS POLLED BY DOW JONES CAPITAL MARKETS BELIEVE THE TREASURY WILL OPT TO LEAVE THE SIZE OF THE THREEYEAR NOTE OFFERING UNCHANGED AT 155 BILLION THEY ENVISION MODEST CUTS IN LONGER ISSUES THE 10YEAR NOTE IS SEEN BEING TRIMMED TO 110 BILLION FROM 1125 BILLION AND THE 30YEAR BOND TO 975 BILLION FROM 1025 BILLION EVEN SO TREASURYS HAVE BEEN ABLE TO MAINTAIN MUCH OF THEIR GAINS FROM EARLIER WEEKS THAT'S BECAUSE INVESTORS HAVE SO FAR BEEN ENCOURAGED BY WHAT APPEARS TO BE THE CLINTON ADMINISTRATION'S WILLINGNESS TO LOOK AT TOUGH MEASURES DEEMED NECESSARY TO REDUCE THE BUDGET DEFICIT THAT HAS BEEN THE DRIVING FORCE SAID MR SULLIVAN THE PROSPECT OF REDUCED BOND SUPPLY HAS PLAYED A SECONDARY ROLE THROUGHOUT THE RALLY HE SAID SHOULD THE TREASURY DISAPPOINT THE MARKET AND HOLD STEADY THE AMOUNT OF LONG BONDS ANY SUBSEQUENT PRICE DECLINES COULD EASILY BE OVERCOME IF THE UPCOMING DEFICIT REDUCTION PACKAGE IS VIEWED AS BEING CREDIBLE SAID MR SULLIVAN THE FEDERAL OPEN MARKET COMMITTEE THE POLICYMAKING ARM OF THE FEDERAL RESERVE MET YESTERDAY IN THE FIRST OF TWO DAYS OF MEETINGS ACCORDING TO TREASURY MARKET ANALYSTS IT IS UNLIKELY THAT THE FED WILL MOVE TO CHANGE ITS CURRENT NEUTRAL STANCE TOWARD INTEREST RATES GIVEN RECENT SIGNS OF ECONOMIC STRENGTH THERE IS THE POSSIBILITY THAT THE FED WILL MOVE TO LOWER THE ANNUAL GROWTH TARGET FOR THE M2 MONEYSUPPLY MEASURE FROM THE CURRENT 25 TO 65 RANGE THOUGH FEW ANALYSTS BELIEVE THIS WOULD HAVE AN IMMEDIATE EFFECT ON SHORTTERM INTEREST RATES SOME IN THE MARKET WORRY THAT A CHANGE IN THE TARGETS COULD SIGNAL THAT THE FED IS PREPARING TO INCREASE INTEREST RATES JUST AS THE ECONOMY IS BEGINNING TO PICK UP STEAM BUT MOST ANALYSTS SAY THIS IS UNLIKELY M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 JUNK BONDS OF RH MACY & CO SHOT UP YESTERDAY ONE DAY AFTER THE RETAILER REPORTED ITS FIRST MONTHLY PROFIT SINCE FILING FOR US BANKRUPTCY CODE PROTECTION A YEAR AGO MACY'S 145 SENIOR SUBORDINATED DEBENTURES DUE 1998 WERE BID AT 28 1/2 UP FROM 27 1/4 MONDAY THE BONDS HAVE BEEN TRADING AT ABOUT 26 SINCE EARLY JANUARY TRADERS SAID MONDAY MACY REPORTED DECEMBER EARNINGS OF 1477 MILLION AND SALES OF NEARLY 12 BILLION FOR THE FIVEWEEK PERIOD ENDED JAN 2 ANALYSTS SAID THE EARNINGS REBOUND AND NEWS LATE JANUARY THAT MACY PLANNED A SECOND WAVE OF STORE CLOSINGS AFTER SHUTTING 65 STORES LAST YEAR WAS ENCOURAGING NONETHELESS FEW EXPECT THE RETAILER TO EMERGE FROM CHAPTER 11 BEFORE THE FIRST OR SECOND QUARTER OF 1995 AMONG THE BROADER JUNK BOND MARKET MOST ISSUES WERE LITTLE CHANGED AS INVESTORS FOCUSED ON NEW OFFERINGS IN THE PIPELINE INVESTORS HAVE GENERALLY IGNORED THE SECONDARY MARKET LATELY BECAUSE MANY SEASONED BONDS ARE TRADING AT STEEP PREMIUMS MEANWHILE INVESTMENTGRADE BONDS SLID 1/8 TO 3/8 POINT MOST OF YESTERDAY'S MUNICIPAL MARKET ACTION TOOK PLACE IN THE NEWISSUE SECTOR WHERE MORE THAN 1 BILLION OF NEW BONDS WERE OFFERED IN SECONDARY DEALINGS PRICES ENDED NARROWLY MIXED THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 84TH SERIES BONDS FINISHED 1/8 POINT HIGHER AT 97 1/4 TO YIELD 616 THE LARGEST OFFERING PRICED YESTERDAY WAS PHILADELPHIA'S 3785 MILLION OF 14TH SERIES GAS WORKS REVENUE BONDS A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP GAVE THE ISSUE YIELDS THAT RANGE FROM 300 IN 1993 TO 670 IN 2026 MOODY'S INVESTORS SERVICE INC HAS RATED THE ISSUE BAA1 STANDARD & POOR'S CORP HAS ASSIGNED A TRIPLEB RATING AND FITCH INVESTORS SERVICE INC HAS RATED THE OFFERING SINGLEAMINUS TODAY THE HIGHLIGHT IS EXPECTED TO BE THE PRICING OF HOMESTEAD FLA'S 470 MILLION OF SPECIAL INSURANCE ASSESSMENT REVENUE BONDS BY A BEAR STEARNS & CO GROUP THE BONDS WHICH ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP ARE BELIEVED TO BE A FIRST FOR THE MUNICIPAL MARKET THIS ISSUE IS FOR THE HURRICANE ANDREW COVERED CLAIMS ASSISTANCE PROGRAM PROCEEDS FROM THE OFFERING WILL BE USED IN PART TO MAKE PAYMENTS TO FLORIDA CLAIMANTS AND POLICYHOLDERS WHOSE INSURANCE COMPANIES BECAME INSOLVENT BECAUSE OF HURRICANE ANDREW IN AUGUST PROCEEDS FROM THE BOND SALE WILL ALSO BE USED TO REPAY A HOMESTEAD LOAN OBLIGATION FUND A DEBT SERVICE RESERVE FUND AND PAY THE COSTS OF ISSUANCE FOR THE SERIES 1993 BONDS THE REVENUES FOR THE BONDS WILL PRIMARILY COME FROM A SPECIAL ASSESSMENT FEE LEVIED ON ALL INSURANCE FIRMS DOING BUSINESS IN FLORIDA AT THE TIME OF THE HURRICANE AND AFTERWARD PRICES OF MORTGAGE SECURITIES ENDED LOWER IN TRADING OF 75 MORTGAGE SECURITIES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 1/4 POINT WEAKER AT 101 22/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS ENDED 9/32 LOWER AT 101 15/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ENDED 9/32 LOWER AT 101 1/4 MEANWHILE THREE REAL ESTATE MORTGAGE INVESTMENT CONDUITS TOTALING ABOUT 13 BILLION WERE ANNOUNCED BY FANNIE MAE FANNIE MAE 75 SECURITIES COLLATERALIZE 800 MILLION AND GINNIE MAE 85 ISSUES BACK THE REMAINDER SPECULATION IN THE MORTGAGE MARKET CONTINUES TO BE DOMINATED BY PREPAYMENTS THE NEXT DATA TO BE RELEASED ARE FRIDAY'S REPORTS OF FANNIE MAE AND GINNIE MAE FIGURES FOR JANUARY BUT MANY MORTGAGE MARKET PLAYERS WILL BE MORE INTERESTED IN FINDING OUT WHAT HAPPENS TO PREPAYMENTS BECAUSE OF HOME SALES AND REFINANCING ACTIVITY AFTER JANUARY'S MORTGAGE RATE DROP THAT ANSWER WON'T BE AVAILABLE UNTIL SPRING CANDACE CUMBERBATCH AND TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9302030003 930203 BERLITZ INTERNATIONAL SHAREHOLDERS PRINCETON NJ BERLITZ INTERNATIONAL INC A LANGUAGE SERVICES CONCERN ONCE CONTROLLED BY THE LATE ROBERT MAXWELL SAID SHAREHOLDERS WILL RECEIVE ABOUT 148 A SHARE AS PART OF AN AGREEMENT TO SELL CERTAIN PROMISSORY NOTES ISSUED BY MAXWELL COMMUNICATION CORP AND CERTAIN AFFILIATES TO LAZARD FRERES & CO A NEW YORK INVESTMENT BANKING FIRM THE AGREEMENT IS IN CONNECTION WITH BERLITZ'S PENDING ACQUISITION BY JAPAN'S FUKUTAKE PUBLISHING CO 9302030002 930203 INSIDE TRACK WALKER INTERACTIVE INSIDERS SOLD STOCK BEFORE RECENT DROP BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BLAME IT ON IBM SAY INSIDERS AT WALKER INTERACTIVE SYSTEMS INC INVESTORS IN THE COMPANY WHICH MAKES FINANCIAL SOFTWARE FOR INTERNATIONAL BUSINESS MACHINES CORP MAINFRAMES HAVE SEEN THE VALUE OF THEIR SHARES PLUNGE 50 SO FAR THIS YEAR DESPITE 1992 NET INCOME THAT WAS MORE THAN DOUBLE THE PREVIOUS YEAR'S LEVEL THE SHARES ARE DOWN ACCORDING TO WALKER'S CHIEF FINANCIAL OFFICER JOSEPH G GIRATA BECAUSE WALL STREET IS PENALIZING THE COMPANY FOR ITS PERCEIVED RELIANCE ON TROUBLED IBM EVEN THOUGH HE SAID WALKER IS ACTING SWIFTLY TO MAKE ITS PRODUCTS AVAILABLE IN FORMATS THAT CAN BE USED BY OTHER TYPES OF COMPUTERS SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW THAT SOME WALKER EXECUTIVES AND DIRECTORS INCLUDING MR GIRATA AND WALKER'S CHAIRMAN SOLD SUBSTANTIAL AMOUNTS OF STOCK LATE LAST YEAR BEFORE THE BIG DROP IN THE STOCK PRICE THE CHAIRMAN DAVID W BROWNLEE SOLD ALL OF HIS WALKER HOLDINGS 520000 SHARES IN LATE OCTOBER AND NOVEMBER FOR 1850 TO 2250 A SHARE SEC FILINGS SHOW ROUGHLY HALF OF THOSE SALES IMMEDIATELY FOLLOWED OPTIONS EXERCISES MR GIRATA SOLD 37700 SHARES IN OPTIONRELATED TRANSACTIONS BETWEEN NOV 11 AND DEC 7 THE FILINGS SHOW IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY WALKER SHARES FELL 75 CENTS TO CLOSE AT 11 MR BROWNLEE DECLINED TO COMMENT BUT MR GIRATA SAID THE INSIDER SELLING WAS DONE TO DIVERSIFY OUR HOLDINGS MR BROWNLEE HAS A SUBSTANTIAL POSITION IN THE COMPANY STILL IN UNVESTED OPTIONS MR GIRATA ADDED ALL TOGETHER SALES BY OFFICERS AND DIRECTORS FROM LAST OCT 23 THROUGH DEC 8 TOTALED ABOUT 14 MILLION SHARES AT PRICES THAT RANGED FROM 1825 TO 2250 A SHARE SEC FILINGS SHOW THIS TOTAL DOESN'T INCLUDE VENTURE CAPITALISTS WHO HAVE ALSO BEEN TRIMMING THEIR HOLDINGS THERE ARE ABOUT 13 MILLION WALKER SHARES OUTSTANDING WALKER WAS TAKEN PUBLIC IN MARCH OF LAST YEAR AT 15 A SHARE IN AN OFFERING COMANAGED BY MORGAN STANLEY & CO AND ROBERTSON STEPHENS & CO IN MAY MORGAN STANLEY ANALYST JC MENDELSON RECOMMENDED PURCHASE OF THE STOCK ASSIGNING IT A ONEYEAR PRICE TARGET OF 27 MR MENDELSON WHO COULDN'T BE REACHED FOR COMMENT YESTERDAY PREDICTED THAT WALKER'S REVENUE AND EARNINGS WOULD GROW 30 AND 35 RESPECTIVELY ANNUALLY IN THE NEXT FIVE YEARS WALKER ACTUALLY GREW FASTER THAN THAT IN 1992 THE COMPANY REPORTED EARLIER THIS WEEK THAT 1992 NET INCOME TRIPLED TO 107 MILLION OR 86 CENTS A SHARE FROM 35 MILLION OR 32 CENTS A SHARE IN 1991 BUT IN A STATEMENT RELEASED IN CONNECTION WITH THE EARNINGS MR BROWNLEE SAID THAT THE RATE OF REVENUE AND EARNINGS GROWTH REALIZED IN 1992 WILL BE DIFFICULT TO DUPLICATE IN 1993 IN PARTICULAR NEW PRODUCT SALES WERE BELOW EXPECTATIONS IN THE FOURTH QUARTER SAID MR GIRATA A CERTAIN PERCENTAGE OF POTENTIAL PURCHASERS WILL DELAY MAKING A DECISION ABOUT BUYING MAINFRAME COMPUTERS AND RELATED SOFTWARE BECAUSE THE SECTOR IS SEEN TO BE IN TROUBLE HE ADDED BUT BY THE END OF THIS YEAR WALKER PLANS TO BE DELIVERING ALL OF OUR PRODUCTS IN FORMATS USABLE BY SMALLER COMPUTERS HE SAID MUCH OF THE SLIDE IN WALKER'S SHARE PRICE HAS COME SINCE JAN 18 WHEN THE COMPANY RELEASED A PRELIMINARY ESTIMATE OF ITS 1992 FOURTHQUARTER REVENUE AT 183 MILLION THE TOTAL FELL ABOUT 2 MILLION SHORT OF WHAT ROBERTSON STEPHENS ANALYST RICHARD EDWARDS HAD PREDICTED THE COMPANY WOULD REPORT AND SHARES WERE SOLD OFF FOR SEVERAL MONTHS THERE HAS BEEN INSIDER SELLING BOTH BY THE VENTURE CAPITALISTS INVOLVED WITH THE FIRM GENERAL ATLANTIC PARTNERS AND ITS PARTNERS AND BY WALKER OFFICERS AND DIRECTORS BUT THE PACE OF SELLING ACCELERATED SHARPLY IN NOVEMBER AND DECEMBER SEC FILINGS SHOW MR GIRATA SAID THAT UNDER TERMS OF THE COMPANY'S PUBLIC OFFERING WALKER EXECUTIVES WERE ALLOWED TO SELL A PORTION OF THEIR HOLDINGS AT THE END OF LAST JULY AN ADDITIONAL AMOUNT AT THE END OF SEPTEMBER AND MORE SHARES AT THE END OF NOVEMBER SALES WERE LARGEST LATE IN THE YEAR HE SAID BECAUSE OF POTENTIAL TAX PENALTIES RELATED TO EXECUTIVE COMPENSATION THAT MIGHT BE ENACTED UNDER THE CLINTON ADMINISTRATION ALL OF THE EXECUTIVES AND DIRECTORS WHO SOLD HOLD OPTIONS FOR MORE SHARES THAN THEY SOLD HE ADDED THE EXERCISE PRICE ON THE EXECUTIVES' OPTIONS RANGES FROM ABOUT 35 CENTS TO 15 A SHARE AND THEY'LL VEST OVER ROUGHLY THE NEXT FIVE YEARS HE SAID 9302030001 930203 WHO'S NEWS UNION TEXAS PETROLEUM HOLDINGS INC UNION TEXAS PETROLEUM HOLDINGS INC HOUSTON GLENN A COX RETIRED PRESIDENT AND CHIEF OPERATING OFFICER OF PHILLIPS PETROLEUM CO WAS NAMED TO THE BOARD OF THIS OIL AND GAS CONCERN MR COX 63 YEARS OLD SUCCEEDS JEROME KOHLBERG JR A KOHLBERG & CO PARTNER WHO RESIGNED 9302030125 930115 REVIEW & OUTLOOK EDITORIAL THE ELLEN PARDON WHEN WE EDITORIALIZED ON NOVEMBER 18 THAT PRESIDENT BUSH SHOULD PARDON BILL ELLEN WHO WAS CONVICTED IN FEDERAL COURT IN MARYLAND OF VIOLATING THE WETLANDS LAW THE REACTION WAS INTENSE AFTER FINISHING EPA'S MOST WANTED SOME READERS THOUGHT THEY HAD STUMBLED INTO A NIGHTMARE TALE FROM ANOTHER COUNTRY BUT WE ALSO RECEIVED LETTERS FROM FEDERAL PROSECUTORS INVOLVED ONE WAY OR ANOTHER WITH THE ELLEN CASE OBJECTING TO OUR DESCRIPTION OF HIS STORY AND ADAMANTLY OPPOSING A PRESIDENTIAL PARDON FOR BILL ELLEN FINALLY THERE HAVE BEEN REPORTS THAT PRESIDENT BUSH ALSO READ THE ACCOUNT AND WAS INDEED CONSIDERING THE POSSIBILITY OF A PARDON PERHAPS THE MOST INTERESTING EXPRESSION OF SUPPORT FOR A PARDON COMES FROM DEMOCRATIC SENATOR DAVID PRYOR OF ARKANSAS SENATOR PRYOR A CLOSE FRIEND OF PRESIDENTELECT CLINTON IS UP FRONT IN SAYING HE'S WORRIED THAT FARMERS IN ARKANSAS COULD DISAPPEAR INTO SIMILAR LITIGATION WITH FEDERAL PROSECUTORS AND AGENCIES IN A LETTER TO MR BUSH SENATOR PRYOR SAID IN MY OPINION ELLEN'S STORY IS A PRIME EXAMPLE OF THE STRANGE AND TWISTED CONSEQUENCES THAT CAN RESULT FROM A BUREAUCRACY OUT OF TOUCH WITH REALITY ALL THIS CORRESPONDENCE AND ARGUMENT HAS DRAWN US DEEPER INTO THE SUBJECT OUR CONCLUSION IS THAT WHAT SITS AT THE HEART OF THIS CONTROVERSY IS THE LACK OF A POLITICAL CONSENSUS ABOUT A RELATIVELY NEW BODY OF LAW KNOWN AS ENVIRONMENTAL CRIME THIS IS A SUBJECT THAT HAS RECEIVED SCANT ATTENTION FROM THE PUBLIC OR THE PRESS AND THAT DESERVES MUCH MORE DISCUSSION BEFORE IT BECOMES ENTRENCHED IN THE FEDERAL LEGAL SYSTEM WE STRONGLY SUSPECT THAT MR BUSH HIMSELF IS NOT AWARE OF THE EXTRAORDINARILY EXPANSIVE PHILOSOPHY OF CRIMINAL LAW AND PROSECUTION THAT IS BEING DEVELOPED IN THIS AREA BY SOME ASSISTANT FEDERAL ATTORNEYS SUPPORTED BY THE ARMY CORPS OF ENGINEERS THE FINAL LINE OF OUR ORIGINAL EDITORIAL SAID OF THE PROPOSED PARDON FOR BILL ELLEN IN DOING SO MR BUSH WOULD SEND A SIGNAL THAT HE NEVER INTENDED FOR WETLANDS POLICY TO CREATE A POLICE STATE IN AMERICA THAT IS STILL THE POINT AS FOR MR ELLEN HIMSELF SUFFICE IT TO SAY THAT HE WAS INDEED FOUND GUILTY BY A FEDERAL JURY OF VIOLATING A WETLANDS REGULATION AND AN APPEALS COURT UPHELD THE CONVICTION WE DESCRIBED MR ELLEN'S CASE AS KAFKAESQUE INVOLVING VAGUE DEFINITIONS OF WETLANDS AND AN ARREST SPECIFICALLY FOR LETTING TWO LOADS OF DIRT BE DUMPED ON LAND THAT SOMEONE REPRESENTING THE US SAID WAS A WETLAND BRECKINRIDGE L WILLCOX WHO PROSECUTED THE CASE HAS WRITTEN US THAT MR ELLEN CONTEMPTUOUSLY IGNORED CEASEANDDESIST ORDERS FROM THE CORPS OF ENGINEERS PLUS NUMEROUS EXPRESSIONS OF CONCERN FROM PROJECT CONTRACTORS US ATTORNEY FOR MARYLAND RICHARD BENNETT HAS ALSO WRITTEN TO THIS EFFECT ACCUSING US OF LEAPING INTO THE EMOTIONAL FRAY STILL WE COULDN'T HELP BUT BE STRUCK BY AN ANTIELLEN LETTER FROM ONE FULLTIME WORKER IN THE FRAY EDWARD PERRY AN OFFICIAL WITH THE US FISH AND WILDLIFE SERVICE IN PENNSYLVANIA MR PERRY SAYS HE HAS PERSONALLY BEEN INVOLVED IN HUNDREDS OF WETLAND VIOLATIONS THE PAST SEVEN YEARS AND AM AWARE OF OVER 1600 OTHER CASES IN PENNSYLVANIA HE SAYS ONLY THREE ENDED UP IN COURT BECAUSE MOST INDIVIDUALS WORK COOPERATIVELY WITH THE INSPECTOR TO RESOLVE THE VIOLATION THAT'S CERTAINLY A LOT OF WETLANDS VIOLATORS IN ONE STATE IT SUGGESTS SENATOR PRYOR'S CONCERN FOR ARKANSAS MAY BE WELL PLACED WE THINK WE DISCOVERED WHY MOST OF THE ACCUSED WOULD CHOOSE TO WORK COOPERATIVELY WITH THE ENFORCEMENT PEOPLE AFTER WE READ ANOTHER ANGRY LETTER FROM JONATHAN TURLEY WHO IS THE DIRECTOR OF THE ENVIRONMENTAL CRIMES PROJECT AT GEORGE WASHINGTON UNIVERSITY PROFESSOR TURLEY AND HIS LAW STUDENTS RECENTLY COMPLETED A REPORT AT THE REQUEST OF DEMOCRATIC REP CHARLES SCHUMER OF NEW YORK CITY SEVERELY CRITICAL OF SOMETHING WITHIN THE JUSTICE DEPARTMENT CALLED THE ENVIRONMENTAL CRIMES UNIT ASSISTANT US PROSECUTORS AND EPA INVESTIGATORS COMPLAINED TO MR TURLEY'S PROJECT OF A LACK OF ZEAL BY THE UNIT'S LAWYERS RECORD FINES PAID BY CORPORATIONS SAYS THE REPORT FOR REP SCHUMER SERVE ONLY TO EMPHASIZE THE ABSENCE OF INDIVIDUAL DEFENDANTS IN OTHER WORDS CORPORATE OFFICERS WERE ALLOWED TO ESCAPE INDIVIDUAL CHARGES WE SUGGEST THAT ZOE BAIRD AT JUSTICE CAROL BROWNER AT EPA AND WHOEVER BECOMES GENERAL COUNSEL TO PRESIDENT CLINTON GET TOGETHER EARLY ON TO TALK ABOUT WHICH WAY THEY WANT TO JUMP ON THIS ONE OUR SENSE IS THAT IF THEY GIVE THESE NEW CADRES OF ENVIRONMENTALLY CORRECT FEDERAL PROSECUTORS THEIR HEADS TO SEEK LONGER PRISON TERMS FOR EXECUTIVES AND FARMERS WITHOUT A FULL POLITICAL VENTING OF THE ISSUE THERE IS GOING TO BE A WAR OUT THERE EVENTUALLY THIS FOR INSTANCE IS MARYLAND ASSISTANT US ATTORNEY JANE BARRETT WRITING RECENTLY IN NORTHWESTERN LAW SCHOOL'S JOURNAL ENVIRONMENTAL LAW WITH THE ADVENT OF FEDERAL SENTENCING GUIDELINES MANY EXPECTED THAT MOST ENVIRONMENTAL CRIMINALS WOULD SERVE SIGNIFICANT TIME IN JAIL SHE COMPLAINS THAT THE PRACTICE OF LENIENT SENTENCING OF ENVIRONMENTAL CRIMINALS HAS CONTINUED IN SOME DISTRICTS SENTENCES OF LESS THAN A YEAR OR PROBATION VIOLATE THE CLEAR MANDATE OF CONGRESS AND UNDERCUT THE DETERRENT EFFECT OF PROSECUTIONS WE DON'T FEEL AT ALL COMFORTABLE TO DISCOVER THE ARGUMENTS OR IMPULSES BEHIND THE ENVIRONMENTAL CRIMINAL LAW MOVEMENT WE'RE EVEN LESS COMFORTABLE TO DISCOVER THAT THE MOVEMENT HAS BECOME SO POPULAR AMONG ASSISTANT US ATTORNEYS WHO POSSESS IMMENSE POLICE POWER WHATEVER MANDATE OF CONGRESS ONE MAY DIVINE THE WETLANDS CASES PROVE THAT ENVIRONMENTAL REGULATION REQUIRES MORE ADMINISTRATIVE JUDGMENT THAN IS EVIDENT IN WHATEVER PRODUCED 1600 CASES OF VIOLATIONS IN PENNSYLVANIA BEYOND THAT AFTER WITNESSING A DECADE OF PROSECUTORIAL ABUSE GENERALLY WE'D SAY THE FEDERAL ATTORNEYS CORPS SHOULD NOT RECEIVE THE GREEN LIGHT OF ZEAL TO SEEK ENVIRONMENTAL INDICTMENTS WE HAVE NO DISPUTE WITH PROSECUTING SIGNIFICANT AND CONSCIOUS ACTS OF ENVIRONMENTAL DEVASTATION IT IS THE CASES BELOW THIS CLASS THAT MAKE US DOUBT THE DISCRETION OR SELFRESTRAINT OF THESE PROSECUTORS SO YES PARDON BILL ELLEN WHO IS NOW FEDERAL PRISONER NO 27445037 IT WOULD BE NICE FOR HIM AND HIS FAMILY BUT IT WOULD MAINLY FORCE ALL THE REST OF US THE PUBLIC AND OUR POLITICIANS TO DECIDE WHETHER WE REALLY WANT TO GO WHERE PROSECUTORS BUREAUCRATS AND LAW JOURNALS HAVE BEGUN TO DRAG SOME OF US SEE RELATED LETTERS LETTERS TO THE EDITOR CRIMES AGAINST THE ENVIRONMENT WSJ FEB 3 1993 9301150110 9302030117 930105 ENVIRONMENT BY CALEB SOLOMON MARKETERS OF ALTERNATIVE MOTOR FUELS PARTICULARLY COMPRESSED NATURAL GAS THINK THEY'LL GET A BIG BOOST FROM THE CLINTON ADMINISTRATION THE PRESIDENTELECT AND HIS ADVISERS HAVE TALKED UP CNG BECAUSE IT BURNS CLEANER THAN GASOLINE AND COULD REDUCE OIL IMPORTS ALBEIT SLIGHTLY UTILITY EXECUTIVE HAZEL O'LEARY MR CLINTON'S CHOICE FOR ENERGY SECRETARY EVEN DRIVES A CAR THAT CAN RUN ON CNG ONE OF THE ALTERNATIVE FUELS THAT WILL BE PHASED IN TO USE UNDER THE 1990 CLEAN AIR ACT AND STATE REGULATIONS ESPECIALLY IN CALIFORNIA STILL THE WHOLE ALTERNATIVE FUELS INDUSTRY IS IN ITS EMBRYONIC STAGE SAYS TERRY BOTRUFF MANAGER OF A NEW AMOCO UNIT DEVOTED TO CNG EXPANSION AMOCO IS PERHAPS THE MOST AGGRESSIVE BACKER OF CNG AMONG BIG OIL BUT EVEN IT HAS INSTALLED PUMPS AT ONLY 12 STATIONS AROUND THE COUNTRY AND IT PLANS 15 TO 20 MORE IN 1993 A FAR CRY FROM ITS 9900 STATIONS THAT SELL GASOLINE AT EACH OF ITS CNG STATIONS AMOCO SPENDS ABOUT 200000 TO INSTALL EQUIPMENT THAT COMPRESSES THE NATURAL GAS AND A PUMP THAT PRICES THE CNG IN GALLONS LIKE GASOLINE MR BOTRUFF SAYS THAT SO FEW VEHICLES ARE NOW CAPABLE OF RUNNING ON CNG THAT MONTHLY SALES AVERAGE JUST A COUPLE OF HUNDRED GALLONS AT EACH SITE A STATION NEEDS TO SELL 10000 TO 20000 GALLONS A MONTH TO BREAK EVEN HE FIGURES MR BOTRUFF PREDICTS THAT IN 15 YEARS STATIONS WILL SELL AS MUCH AS 40000 GALLONS OF GNG MONTHLY MR BOTRUFF SAYS CNG'S ADVANTAGE OVER OTHER ALTERNATIVE FUELS SUCH AS METHANOL ETHANOL AND PROPANE IS THAT AN INFRASTRUCTURE ALREADY EXISTS OF NATURAL GAS PIPELINES UNDER MANY STREETS PLUS NATURAL GAS COSTS ABOUT HALF AS MUCH AS GASOLINE SAYS BOONE PICKENS CHAIRMAN OF MESA MESA HAS LOOSELY OFFERED TO PAY TO CONVERT GASOLINEPOWERED FLEET VEHICLES TO CNG IN 10 CITIES BUT HAS NO TAKERS REGULATORY HURDLES HAVE SLOWED MESA DOWN ALSO CNG SCARES SOME DRIVERS WHO FEAR COMPRESSED GAS WILL EXPLODE YOU DON'T CALL GASOLINE LIQUID GASOLINE A MESA SPOKESMAN SAYS SO WE THINK CNG SHOULD JUST BE CALLED NATURAL GAS CHEVRON'S OIL REFINERY IN RICHMOND CALIF THE BIGGEST WATER USER IN THE DROUGHTPLAGUED AREA ALONG THE EAST SIDE OF SAN FRANCISCO BAY WILL CURB CONSUMPTION OF FRESH WATER 45 IN EARLY 1994 BY USING TREATED WASTE WATER THE CHEVRON REFINERY WHICH USES WATER TO COOL PETROLEUM PRODUCTS THAT ARE PROCESSED FROM CRUDE OIL HAS ALREADY CUT BACK FRESHWATER USE BY HALF IN THE PAST FIVE YEARS TO 10 MILLION GALLONS A DAY CHEVRON IS OUR PRIZE SAYS GAYLE MONTGOMERY SPOKESMAN FOR THE EAST BAY MUNICIPAL UTILITY DISTRICT THE LOCAL WATER AND SEWAGE AUTHORITY KNOWN AS EAST BAY MUD RESERVOIRS IN THE DISTRICT ARE NOW 45 FULL COMPARED WITH AN AVERAGE OF 75 AT THIS TIME OF YEAR HOMEOWNERS LIVE UNDER TIGHT WATERUSE RESTRICTIONS BUT EAST BAY MUD HASN'T PRESSURED BUSINESSES IN THE DISTRICT AS MUCH WE'RE NOT AS HARD ON BUSINESSES BECAUSE WE DON'T WANT TO HURT JOBS MR MONTGOMERY SAYS NOTING THE STRUGGLING ECONOMY IN CALIFORNIA IF A GATORADE PLANT HAD TO CUT BACK FOR INSTANCE THEY WOULD CUT JOBS HE SAYS CHEVRON HAS TESTED THOROUGHLY TO MAKE SURE THAT THE WASTE WATER WON'T CORRDE OR FOUL UP ITS PIPES USING WASTE WATER WILL ONLY SLIGHTLY REDUCE THE PLANT'S ANNUAL WATER BILL OF 2 MILLION IT'S THE RIGHT THING TO DO SAYS MARK ROSENBERG AN ENVIRONMENTAL SUPERVISOR AT THE REFINERY WHICH HAS ANGERED RESIDENTS WITH SEVERAL FIRES AND ACCIDENTS IN RECENT YEARS AS THEY DRILL MORE WELLS IN ENVIRONMENTALLY SENSITIVE AREAS SUCH AS THE TROPICAL RAIN FOREST IN ECUADOR OIL COMPANIES MUST MEET NEW STANDARDS THE MOOD WORLDWIDE IS SAVE THE ENVIRONMENT AT ANY COST' COMPLAINS WILLIAM HUTTON ONSITE GENERAL MANAGER OF MAXUS ECUADOR A UNIT OF MAXUS WHICH IS BASED IN DALLAS MAXUS PLANS TO MINIMIZE TREECUTTING IN ECUADOR TO 1000 ACRES OF A 700000ACRE BLOCK OF RAIN FOREST WHERE IT EXPECTS TO DRILL 100 WELLS STILL ENVIRONMENTALISTS HAVE DEMONSTRATED IN QUITO ECUADOR'S CAPITAL AGAINST ANY DRILLING BY THE COMPANY IN THE AREA ALSO AT ISSUE IN ECUADOR ARE NATIVE INHABITANTS WHO LIVE IN THE FOREST MAXUS SAYS 70 LIVE IN ITS BLOCK AND THE COMPANY HAS A LITERAL HANDSOFF POLICY MAXUS EMPLOYEES AREN'T EVEN ALLOWED TO TALK TO INDIANS MR HUTTON SAYS IF THEY DO THEY'RE FIRED WE AREN'T GETTING INTO THE INDIANS' CULTURE MAXUS ALSO PLEDGES TO ABIDE BY RAINFOREST GUIDELINES ESTABLISHED BY INDUSTRY AND RAINFOREST EXPERTS THAT OIL COMPANIES HOPE WILL EVENTUALLY LEAD TO UNIFORM DRILLING RULES IN MANY NATIONS THE GUIDELINES URGE THAT WHERE PRACTICAL CONSTRUCTION OF ROADS SHOULD BE AVOIDED THE RATIONALE IS THAT EASY ACCESS INTO THE FOREST ABETS DEFORESTATION BY GROUPS WHO FOLLOW DRILLERS INTO THE FOREST UNDER THE GUIDELINES OIL WORKERS CAN'T HUNT TRAP OR GATHER FOOD IN THE FOREST WHEN LEAVING AN AREA COMPANIES ARE SUPPOSED TO RESTORE SITES AS NEARLY AS POSSIBLE TO THEIR ORIGINAL CONDITIONS MAKE ROADS AND CAMPSITES INACCESSIBLE AND TAKE DOWN BRIDGES FORTY MUNICIPAL EMPLOYEES IN GLENDALE ARIZ RIDE FREE BICYCLES TO WORK IN A PROGRAM TO REDUCE SINGLEOCCUPANT CAR USE AND GASOLINE CONSUMPTION THE BIKES RECOVERED BY POLICE AS UNCLAIMED PROPERTY ARE DISTRIBUTED FREE TO CITY EMPLOYEES WHO PROMISE TO PEDAL TO WORK AT LEAST THREE DAYS A WEEK FOR A YEAR AQUA HEAT TECHNOLOGIES MINNEAPOLIS DEVELOPED A TRACTORPULLED DEVICE THAT SCALDS WEEDS WITH BOILING WATER ELIMINATING ANY NEED TO USE PETROCHEMICAL HERBICIDES FOR CITRUS POTATO AND COTTON CROPS WHICH ARE SHIELDED FROM THE WATER SEE RELATED LETTER LETTERS TO THE EDITOR THE ROAD TO RUIN IN THE RAIN FOREST WSJ FEB 3 1993 9301050002 9302020184 930202 STOCKS IN BRONFMAN COMPANIES PLUNGE AS CANADIAN AGENCY CUTS DEBT RATINGS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO A DECISION BY A CANADIAN RATING AGENCY TO DOWNGRADE THE DEBT ISSUED BY MOST OF THE BRONFMAN GROUP'S HOLDING COMPANIES AND OPERATING CONCERNS TOUCHED OFF A BROAD RETREAT IN SHARES OF THE GROUP'S PUBLICLY TRADED COMPANIES THE STOCKS PLUNGED TO NEW LOWS IN BRISK TORONTO STOCK EXCHANGE TRADING ON NEWS OF THE DOWNGRADES THE NEW SERIES OF BLOWS TO THE CORPORATE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN ALSO SPARKED CONCERN THAT THE TROUBLES WOULD SPREAD BEYOND THE GROUP'S REAL ESTATE AND FINANCIALSERVICES BUSINESSES THIS IS A WHOLESALE EROSION OF CONFIDENCE SAID FRED KETCHEN VICE PRESIDENT OF EQUITY TRADING AT SCOTIA MCLEOD INC A TORONTO INVESTMENT DEALER SHAREHOLDERS ARE FLEEING AND SPECULATORS ARE JUMPING IN HERE TO MAKE A QUICK BUCK CANADIAN BOND RATING SERVICE DOWNGRADED ITS RATINGS ON DEBT AND PREFERRED SHARES ISSUED BY ROYAL TRUSTCO LTD THE GROUP'S BELEAGUERED FINANCIALSERVICES CONCERN CITING A DETERIORATION IN THE COMPANY'S LOAN PORTFOLIO AND THE NEED FOR LARGE ADDITIONAL LOANLOSS PROVISIONS IT ALSO VOICED CONCERN ABOUT THE LEVEL OF UNCERTAINTY SURROUNDING ROYAL TRUSTCO'S ABILITY TO LOCATE AN EQUITY PARTNER TO INVEST SEVERAL HUNDRED MILLION DOLLARS THE COMPANY SAID LAST MONTH IT IS IN TALKS WITH A NUMBER OF FINANCIAL INSTITUTIONS AIMED AT SECURING SUCH NEW INVESTMENT SHARES OF ROYAL TRUSTCO SET YET ANOTHER 52WEEK LOW ON THE NEWS FALLING 28 TO END THE DAY AT 122 CANADIAN DOLLARS 96 US CENTS A SHARE OFF 48 CANADIAN CENTS SHARES OF TRILON FINANCIAL CORP THE HOLDING COMPANY THROUGH WHICH THE BRONFMAN GROUP CONTROLS ROYAL TRUSTCO DROPPED 26 TO C215 A SHARE OFF 55 CANADIAN CENTS ALAIN TUCHMAIER A FINANCIAL SERVICES ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO DESCRIBED THE SHARP DROP IN VALUE OF ROYAL TRUSTCO'S STOCK WHICH HAS LOST 58 OF ITS VALUE SINCE DEC 31 1992 AS A REALITY CHECK BY THE MARKET IT HAS BECOME VERY EVIDENT THAT ROYAL TRUSTCO HAS A VERY SERIOUS ASSETQUALITY PROBLEM MR TUCHMAIER SAID I STILL DO NOT BELIEVE THEY WILL BE ABLE TO FIND AN INVESTOR TO PUT MONEY INTO THE HOLDING COMPANY INSTEAD MR TUCHMAIER BELIEVES ROYAL TRUSTCO WILL BE FORCED TO SELL OFF ITS ONE GROUP OF SOLID ASSETS THE TRUST COMPANY OPERATIONS IN CANADA SOME CANADIAN BANKS THAT HAVE REJECTED THE IDEA OF INVESTING IN THE HOLDING COMPANY ITSELF HAVE SAID THEY MAY BE INTERESTED IN PICKING UP SOME OF THE ASSETS THE RATING AGENCY ALSO SLASHED ITS RATINGS ON DEBT AND PREFERRED SHARES ISSUED BY TRILON AND TWO OTHER BRONFMAN HOLDING COMPANIES HEES INTERNATIONAL BANCORP INC AND BRASCAN LTD AS WELL AS THAT OF SOME OF THE GROUP'S REAL ESTATE CONCERNS SHARES OF THESE COMPANIES ALSO FELL IN TORONTO STOCK EXCHANGE TRADING EVEN COMPANIES SUCH AS NORANDA INC THE GIANT RESOURCES CONCERN WHICH IS 49 OWNED BY THE BRONFMAN GROUP THROUGH BRASCAN FELT THE IMPACT OF THE DOWNGRADES WHILE NORANDA'S CREDIT RATING WASN'T CUT ITS SHARE PRICE DROPPED 125 CANADIAN CENTS TO CLOSE AT C16 A NEW 52WEEK LOW INSTITUTIONAL INVESTORS SAY THAT THE DOWNGRADES SIMPLY REFLECT LONGSTANDING CONCERNS WITH THE GROUP'S ABILITY TO RAISE NEW CAPITAL IF NEEDED HEES THE ONLY COMPANY TO COMMENT ON THE DOWNGRADES SAID IT IS CUTTING ITS DEBT LEVELS AND DOESN'T EXPECT THE DOWNGRADE TO HAVE ANY IMPACT THE BRONFMANS TYPICALLY DON'T COMMENT ON THE DAYTODAY OPERATIONS OF THE COMPANIES THEY CONTROL DAVID RAMSAY AN ANALYST AT WOOD GUNDY INC SAID THE SITUATION ISN'T AS CRITICAL AS THAT WHICH FACED OLYMPIA & YORK DEVELOPMENTS LTD LAST YEAR WHEN IT WAS FORCED TO FILE FOR BANKRUPTCY PROTECTION THERE'S STILL SOME ASSET VALUE IN MANY OF THESE COMPANIES HE NOTES PUTTING BRASCAN'S NET ASSET VALUE AT ABOUT C1250 A SHARE WELL ABOVE THE CURRENT MARKET PRICE OF C9375 HE ADDS THAT THE BRONFMAN COMPANIES FOLLOWING O&Y'S COLLAPSE HAVE VIRTUALLY ELIMINATED THEIR EXPOSURE TO THE RISKY COMMERCIAL PAPER MARKET BANKS ARE THE SHORTTERM CREDITORS TO MOST OF THE BRONFMAN GROUP COMPANIES AT THIS STAGE HE SAYS ROYAL TRUSTCO HEES BRASCAN TRILON AND NORANDA ARE ALL BASED IN TORONTO PETER AND EDWARD BRONFMAN WHO INDIRECTLY CONTROL THESE AND OTHER GROUP COMPANIES ARE COUSINS OF MONTREAL'S BRONFMAN FAMILY WHICH OWNS SEAGRAM CO BUT THE TWO FAMILIES HAVE NO BUSINESS INTERESTS IN COMMON DAVID RAMSAY AN ANALYST AT WOOD GUNDY INC IN TORONTO PUTS THE NET ASSET VALUE OF BRASCAN LTD AT 1250 CANADIAN DOLLARS US989 A SHARE AFTER ACCOUNTING FOR THE COMPANY'S EXPOSURE TO ROYAL TRUSTCO LTD AND TRILON FINANCIAL CORP AN ARTICLE TUESDAY DIDN'T MAKE CLEAR THAT THE NET ASSET VALUE FIGURE REFLECTED THIS EXPOSURE 9302020183 930202 MARKETING & MEDIA SUPERBOWL VIEWER RATES MAY TOP RECORD FOR 1986 NEW YORK NBC ESTIMATED THAT MORE THAN 120 MILLION PEOPLE WATCHED ITS COVERAGE OF THE SUPER BOWL ON SUNDAY AND THAT FINAL RATINGS COULD MAKE THE TELECAST THE MOSTWATCHED SUPER BOWL EVER PRELIMINARY 28CITY OVERNIGHT RATINGS FROM AC NIELSEN CO SHOW THAT 439 OF HOMES TUNED IN FOR THE DALLAS COWBOYSBUFFALO BILLS GAME WHILE 65 OF THE NIGHT'S TELEVISION AUDIENCE WATCHED THE GAME NATIONAL RATINGS WILL BE RELEASED TODAY THE RECORD SUPER BOWL AUDIENCE WAS FOR THE 1986 CHICAGO BEARSNEW ENGLAND PATRIOTS GAME ALSO ON NBC WHICH DREW 127 MILLION VIEWERS THE PREVIEW OF THE NEW ONEHOUR DRAMA HOMICIDE LIFE ON THE STREET WHICH FOLLOWED THE POSTGAME SHOW ON THE GENERAL ELECTRIC COOWNED NETWORK AVERAGED A 194 OVERNIGHT RATING AND A 31 SHARE OF TV VIEWERS 9302020180 930202 WHO'S NEWS HARNISCHFEGER INDUSTRIES INC HARNISCHFEGER INDUSTRIES INC MILWAUKEE DON H DAVIS JR PRESIDENT OF ROCKWELL INTERNATIONAL CORP'S ALLENBRADLEY CO UNIT WAS NAMED TO THE BOARD OF THIS EQUIPMENT MAKER HE SUCCEEDS WILLIAM W GOESSEL FORMER HARNISCHFEGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO RETIRED 9302020179 930202 WHO'S NEWS COMMUNITY PSYCHIATRIC CENTERS COMMUNITY PSYCHIATRIC CENTERS LAGUNA HILLS CALIF ROBERT L THOMAS WAS ELECTED A DIRECTOR OF THIS PROVIDER OF PSYCHIATRIC SERVICES INCREASING THE BOARD TO NINE MR THOMAS 68 YEARS OLD RETIRED AS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF PRIVATE PSYCHIATRIC HOSPITALS LAST YEAR 9302020178 930202 WHO'S NEWS AVNET INC AVNET INC GREAT NECK NY RAYMOND SADOWSKI 38 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER OF THIS ELECTRONICS DISTRIBUTOR MR SADOWSKI WHO WILL CONTINUE AS SENIOR VICE PRESIDENT AND ASSISTANT SECRETARY SUCCEEDS JOHN REGAZZI 72 WHO RETIRED MR SADOWSKI WILL ALSO CONTINUE AS CONTROLLER UNTIL A SUCCESSOR IS NAMED 9302020177 930202 TECHNOLOGY IBM CHARGES IN SUIT THAT KYOCERA OF JAPAN INFRINGED ON COPYRIGHT TOKYO INTERNATIONAL BUSINESS MACHINES CORP FILED SUIT AGAINST KYOCERA CORP FOR 187 BILLION YEN 150 MILLION ALLEGING THAT THE JAPANESE MAKER OF ELECTRONICS AND CERAMICS INFRINGED AN IBM COPYRIGHT ON A CHIP USED TO DIRECT DATA TRAFFIC IN PERSONAL COMPUTERS KYOCERA DENIED THAT IT HAD COPIED AN IBM DESIGN FOR THE CHIP KNOWN AS A BASIC INPUT/OUTPUT SYSTEM OR BIOS BECAUSE WE ARE SURE WE HAVE UNIQUELY DEVELOPED OUR OWN BIOS WE WILL FIGHT THIS SUIT IN COURT A KYOCERA SPOKESMAN SAID AN IBM SPOKESMAN SAID THE SUIT FILED IN TOKYO DISTRICT COURT WAS THE FIRST CIVIL ACTION THE COMPANY HAS FILED IN JAPAN IBM HAS AGGRESSIVELY PROTECTED ITS INVESTMENT IN BIOS AND HAS FILED SIMILAR SUITS AGAINST TAIWAN AND US CLONE MAKERS THAT ALLEGEDLY COPIED ITS BIOS CHIPS THE SPOKESMAN SAID BIOS CHIPS ARE KEY COMPONENTS IN PC OPERATING SYSTEMS THAT DIRECT THE FLOW OF DATA FROM INPUT DEVICES SUCH AS KEYBOARDS DISK DRIVES AND MODEMS TO A COMPUTER'S PROCESSORS AND THEN GUIDE THE DATA BACK TO OUTPUT DEVICES SUCH AS SCREENS AND PRINTERS BIOS CHIPS ARE UNIQUE TO A PARTICULAR OPERATING SYSTEM AND ARE CRUCIAL ELEMENTS IN MAKING PCS IBMCOMPATIBLE LEGALLY BIOS CHIPS ARE CONSIDERED SOFTWARE RATHER THAN HARDWARE WHICH MEANS THEY ARE PROTECTED UNDER COPYRIGHT LAW INSTEAD OF BY PATENTS COPYRIGHT ALLOWS OTHER MAKERS TO DEVELOP THE CHIPS INDEPENDENTLY BUT PROHIBITS OUTRIGHT COPIES A PATENT PROTECTS AN INVENTION EVEN FROM IMITATIONS DEVELOPED BY RIVALS BOTH IBM AND KYOCERA SAID THEY HAVE BEEN NEGOTIATING THE BIOS CASE FOR MORE THAN THREE YEARS BUT HAVE FAILED TO COME TO ANY AGREEMENT THIS THING WENT ON FOR A LONG TIME AND THE DAMAGES JUST KEPT RACKING UP THE IBM SPOKESMAN SAID 9302020176 930202 WHO'S NEWS ATMOS ENERGY CORP ATMOS ENERGY CORP DALLAS RONALD L FANCHER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION OF THIS NATURAL GAS DISTRIBUTION COMPANY MR FANCHER 49 YEARS OLD IS A MEMBER OF ATMOS ENERGY'S BOARD AND IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TEXAS COMMERCE BANK IN ODESSA TEXAS HE SUCCEEDS CHARLES K VAUGHAN 55 AS PRESIDENT MR VAUGHAN WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE MR FANCHER WILL RESIGN HIS BOARD POSITION EFFECTIVE FEB 28 THE COMPANY HASN'T NAMED A SUCCESSOR YET 9302020175 930202 WHO'S NEWS AMERICAN OIL & GAS CORP AMERICAN OIL & GAS CORP HOUSTON DONALD L EVANS WAS NAMED TO THE BOARD OF THIS NATURAL GAS COMPANY INCREASING ITS SIZE TO NINE MEMBERS MR EVANS 46 YEARS OLD IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TOM BROWN INC AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY IN MIDLAND TEXAS 9302020174 930202 WHO'S NEWS BONAL INTERNATIONAL INC BONAL INTERNATIONAL INC SOUTHFIELD MICH BETTY JEAN HEBEL REGIONAL SALES MANAGER OF THIS PROVIDER OF STRESS RELIEVING TECHNOLOGY WAS ELECTED TO FILL A VACANT SEAT ON THE COMPANY'S BOARD 9302020173 930202 WHO'S NEWS SARA LEE CORP SARA LEE CORP CHICAGO MAUREEN MURRAY CULHANE 44 YEARS OLD WAS NAMED VICE PRESIDENT AND TREASURER OF THIS CONSUMER PRODUCTS COMPANY MS CULHANE WHO WAS PREVIOUSLY AN INVESTMENT CONSULTANT SUCCEEDS MARY ELLEN JOHNSON WHO MOVED INTO CORPORATE DEVELOPMENT ACTIVITIES AT SARA LEE 9302020172 930202 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK RICHARD H JENRETTE 63 YEARS OLD WAS NAMED A DIRECTOR AT THIS PUBLISHING AND INFORMATION SERVICES COMPANY MR JENRETTE IS CHAIRMAN AND CHIEF EXECUTIVE OF EQUITABLE COS MR JENRETTE IS ALSO COFOUNDER OF DONALDSON LUFKIN & JENRETTE INC THE SECURITIES UNIT OF EQUITABLE 9302020171 930202 WHO'S NEWS BELL ATLANTIC CORP BELL ATLANTIC CORP PHILADELPHIA WILLIAM W ADAMS 58 YEARS OLD PRESIDENT AND CHAIRMAN OF ARMSTRONG WORLD INDUSTRIES INC WAS ELECTED A DIRECTOR OF THIS TELECOMMUNICATIONS COMPANY INCREASING THE BOARD TO 13 MEMBERS 9302020170 930202 WHO'S NEWS TANDY CORP TANDY CORP FORT WORTH TEXAS JACK L MESSMAN 52 YEARS OLD WAS NAMED A DIRECTOR OF THIS CONSUMER ELECTRONICS RETAILER RAISING THE BOARD TO 13 MR MESSMAN IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF UNION PACIFIC RESOURCES CO A SUBSIDIARY OF UNION PACIFIC CORP 9302020169 930202 WHO'S NEWS FIRST FINANCIAL MANAGEMENT CORP FIRST FINANCIAL MANAGEMENT CORP ATLANTA CHARLES B PRESLEY WAS NAMED TO THE BOARD OF THIS INFORMATIONSERVICES COMPANY MR PRESLEY 69 YEARS OLD MOST RECENTLY SERVED AS CHAIRMAN OF THE EXECUTIVE COMMITTEE OF FIRST UNION CORP OF GEORGIA A UNIT OF FIRST UNION CORP HIS ELECTION INCREASES FIRST FINANCIAL'S BOARD TO EIGHT MEMBERS 9302020168 930202 WHO'S NEWS VARITY CORP VARITY CORP BUFFALO NY SIR BRYAN NICHOLSON 61 YEARS OLD CHAIRMAN OF THE COMPANY'S VARITY HOLDINGS LTD UNIT AND LUIZ KAHL 56 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CARBORUNDUM CO NIAGARA FALLS NY A UNIT OF BRITISH PETROLEUM PLC WERE NAMED DIRECTORS THE MOVE INCREASES THE SIZE OF VARITY'S BOARD TO 10 MEMBERS FROM EIGHT VARITY IS A DIVERSIFIED MANUFACTURER WITH CORE BUSINESSES IN AUTOMOTIVE PARTS FARM MACHINERY AND DIESEL ENGINES 9302020167 930202 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN JOHN D MACOMBER 65 YEARS OLD FORMER PRESIDENT OF THE EXPORTIMPORT BANK OF THE US WAS NAMED A DIRECTOR AT THIS MAKER OF BUSINESS MACHINES MR MACOMBER'S SELECTION INCREASES THE BOARD TO 14 MEMBERS 9302020166 930202 WHO'S NEWS WEST POINTPEPPERELL TAPS JENNINGS FOR POSTS WEST POINT GA WEST POINTPEPPERELL INC NAMED JOSEPH L JENNINGS JR PRESIDENT AND CHIEF OPERATING OFFICER MR JENNINGS 55 YEARS OLD SUCCEEDS EDGAR E DAVIS 51 WHO RESIGNED FROM THE TEXTILE MANUFACTURER IN MAY MR JENNINGS WAS MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF MOUNT VERNON MILLS INC A TEXTILE CONCERN BASED IN GREENVILLE SC MR JENNINGS IN A STATEMENT NOTED THAT HIS ELECTION WAS A TYPE OF HOMECOMING HE WAS BORN IN WEST POINT GA HE IS RELATED TO THE LANIER FAMILY WHICH FOUNDED WEST POINTPEPPERELL AND HIS FATHER WAS AN EXECUTIVE VICE PRESIDENT AT THE COMPANY WEST POINTPEPPERELL IN 1992 SEVERED ITS TIES WITH WILLIAM FARLEY THE CHICAGO INDUSTRIALIST WHO WAGED A PROTRACTED CAMPAIGN TO ACQUIRE THE COMPANY IN THE LATE 1980S WEST POINT ACQUISITION CORP THE VEHICLE MR FARLEY USED TO BUY UP NEARLY ALL OF THE TEXTILE CONCERN EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION IN SEPTEMBER AND IS NOW KNOWN AS VALLEY FASHIONS CORP WEST POINTPEPPERELL IS APPROXIMATELY 95OWNED BY VALLEY FASHIONS WEST POINTPEPPERELL RECENTLY REPORTED A LOSS FOR THE 1992 THIRD QUARTER OF 1796 MILLION OR 608 A SHARE REFLECTING ACCOUNTING CHANGES MANDATED BY THE BANKRUPTCYCOURT REORGANIZATION NOT INCLUDING THE SPECIAL CHARGES OPERATING EARNINGS FOR THE QUARTER INCREASED TO 928 MILLION FROM 553 MILLION A YEAR EARLIER THE COMPANY SAID 9302020165 930202 FINANCIAL BRIEF REGENCY HEALTH SERVICES INC REGENCY HEALTH SERVICES INC NEWPORT BEACH CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF AS MUCH AS 40 MILLION CONVERTIBLE SUBORDINATED DEBENTURES PROCEEDS WILL BE USED TO REPAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES INCLUDING EXPANSION OF CERTAIN FACILITIES AND POSSIBLE ACQUISITIONS THE OPERATOR OF HEALTHCARE FACILITIES SAID THE DEBENTURES WILL BE CONVERTIBLE INTO COMMON STOCK AT A PRICE THAT HASN'T YET BEEN DETERMINED THE COMPANY SAID 9302020164 930202 PENHOLLOW SEC AIDE IS NAMED BY BOWNE TO RUN FILING SERVICE NEW YORK BOWNE & CO NAMED JOHN PENHOLLOW HEAD OF THE SECURITIES AND EXCHANGE COMMISSION'S EFFORT TO COMPUTERIZE ITS FILING PROCEDURES TO RUN BOWNE'S ELECTRONIC FILING SERVICES BOWNE EXPECTS MR PENHOLLOW 58 YEARS OLD TO GIVE THE COMPANY AN EDGE AS COMPETITION INTENSIFIES AMONG FINANCIAL PRINTERS TO PROVIDE COMPANIES WITH ELECTRONIC FILING OF DISCLOSURE MATERIALS SAID THOMAS J VOS BOWNE'S VICE PRESIDENT OF MARKETING ELECTRONIC FILING BY COMPANIES SOON WILL BE REQUIRED BY THE SEC AS HEAD OF EDGAR THE SEC'S ELECTRONIC DATA GATHERING ANALYSIS AND RETRIEVAL SYSTEM FOR CORPORATE REPORTS AND SECURITIES REGISTRATIONS MR PENHOLLOW SHEPHERDED THE SYSTEM THROUGH A SERIES OF POLITICAL TECHNICAL AND FINANCIAL DELAYS IN THE LAST EIGHT YEARS BOWNE WAS THE FIRST OF ABOUT 230 COMPANIES IN 1984 TO BEGIN AN SEC PILOT PROGRAM AIMED AT DEVELOPING THE SYSTEM FOR PUBLICLY TRADED COMPANIES AND INVESTMENTMANAGEMENT CONCERNS ALTHOUGH MOST FINANCIAL PRINTERS ARE NOW ACTIVELY INVOLVED IN THE SYSTEM BOWNE HAS THE LARGEST NUMBER OF CLIENTS AMONG THE SYSTEM'S PILOT COMPANIES MR PENHOLLOW WAS NAMED TO A NEW POST CREATED TO HEAD THE COMPANY'S TEAM OF EDGAR SPECIALISTS THE SEC WILL BEGIN PHASING IN THE SYSTEM IN APRIL WITH 2500 OF THE LARGEST COMPANIES AND 800 INVESTMENT COMPANIES EXPECTED TO FILE THEIR REQUIRED FINANCIAL DOCUMENTS ELECTRONICALLY BY THE END OF THE YEAR ALL FILING IS EXPECTED TO BE ELECTRONIC BY MID1996 9302020163 930202 LETTERS TO THE EDITOR THE NANNY BOMB IN REGARD TO ZOE'S LESSON AND BILL'S REVIEW & OUTLOOK JAN 18 AS A PARENT WHO EMPLOYED AND SUCCESSFULLY SPONSORED A FOREIGNER TO CARE FOR MY CHILD I WAS DISAPPOINTED THAT YOUR EDITORIAL PAGE JOINED THE APOLOGISTS FOR ZOE BAIRD YOU MENTION THE COMPLEXITY OF THE IMMIGRATION LAWS FOR DOMESTIC HELP IN THE SAME PARAGRAPH WHERE YOU SAY RETRIBUTION FOR THESE COMPLEX LAWS IS SIMPLY PAYMENT OF BACK TAXES AND A PENALTY IT IS A RUSE TO IMPLY THAT VIOLATION OF THE IMMIGRATION LAWS IS LIKE A SPEEDING OR PARKING VIOLATION TO FURTHER THE RUSE YOU IMPLY THAT BECAUSE OTHERS DISOBEY THE LAW IT SHOULD NOT BE RAISED AGAINST MS BAIRD IT IS MS BAIRD WHO WAS WRONG AND AT BEST USED POOR JUDGMENT I AM NOT A LAWYER OR A ROCKET SCIENTIST IT TAKES NEITHER TO KNOW THAT SOCIAL SECURITY AND INCOME TAXES ARE A FACT OF LIFE AND THAT EMPLOYERS ARE RESPONSIBLE TO SEE THEY ARE PAID DETERMINING MY RESPONSIBILITY DID TAKE SOME INITIATIVE IT DID NOT REQUIRE A LAWYER OR COST ANYTHING WITH A TOLLFREE CALL TO THE INTERNAL REVENUE SERVICE I WAS ABLE TO DETERMINE MY RESPONSIBILITY TO MY EMPLOYEE AND THE GOVERNMENT THE INFORMATION WAS GIVEN QUICKLY AND EACH QUARTER THE NECESSARY FORMS ARRIVED PREPARING THE FORMS TAKES 30 MINUTES THE HARD PART WAS WRITING THE CHECKS FOR IRS TAXES UNEMPLOYMENT TAXES AND WORKERS' COMPENSATION WRITING THE CHECKS IS WHAT PEOPLE TRY TO AVOID NOT THE PAPERWORK IT IS OUR RESPONSIBILITY TO DO OUR BEST TO MEET THE INTENT OF THE LAW HOWEVER COMPLICATED TO IMPLY THAT MS BAIRD A WELLEDUCATED AND HIGHLY PAID LAWYER DID NOT KNOW SHE WAS RESPONSIBLE FOR PAYING TAXES AND COMPLYING WITH OTHER EMPLOYER RESPONSIBILITIES IS AN INSULT TO THE INTELLIGENCE OF THE REST OF US I'M AFRAID SEN JOE BIDEN REP NEWT GINGRICH NINA TOTENBERG AND OTHERS HAVE NOT THOUGHT OF THE FALLOUT FROM ALL THIS PUBLIC FUSS OVER ZOE BAIRD'S HIRING DOMESTIC HELP WITHOUT GREEN CARDS IT WILL LAND ON OUR DOORSTEP IN CALIFORNIA HOWEVER I'VE ALREADY HEARD PEOPLE TALK ABOUT NOT EMPLOYING SOMEONE WHOM THEY'VE COME TO RELY ON FOR YARD HELP ETC OUT OF FEAR OF CRIMINAL WRONGDOING CALIFORNIA ALREADY HAS TERRIFIC BUDGET PROBLEMS AND NOW I'M AFRAID THE STATE WILL HAVE THOUSANDS MORE MOUTHS TO FEED BECAUSE NEWCOMERS WILL NOT BE MAKING MONEY I HAVE PAID A SPANISHSPEAKING MAN TO DO SOME HAULING AM I A CRIMINAL FOR DOING THIS IF SO WE NUMBER IN THE MILLIONS IN THIS STATE ALONE I WAS PLEASED TO LEARN MS BAIRD HAS WITHDRAWN HER NOMINATION FOR ATTORNEY GENERAL THE OVERWHELMING PUBLIC OUTCRY AGAINST HER APPOINTMENT IS A TESTAMENT TO THE COLLECTIVE WISDOM OF THE AMERICAN BODY POLITIC IT IS ALSO A HARDLEARNED BUT IT IS HOPED ENDURING LESSON FOR PRESIDENT CLINTON AND HIS ADMINISTRATION MUCH TO MY AMAZEMENT THE WALL STREET JOURNAL CONTINUES ITS LONELY CRUSADE TO PORTRAY MS BAIRD AS THE CHAMPION OF UNDOCUMENTED ALIENS AND JUST ANOTHER WORKING MOTHER IN SEARCH OF AFFORDABLE CHILD CARE AS MIGHT BE EXPECTED INTELLIGENT READERS EVERYWHERE ARE REFUSING TO EMBRACE THE NAIVE SPIN THAT YOUR EDITORS HAVE ATTEMPTED TO PLACE ON THE COURSE OF ILLEGAL CONDUCT THAT MS BAIRD ELECTED TO PURSUE AND THAT ULTIMATELY LED TO THE WITHDRAWAL OF HER NOMINATION REGARDING YOUR JAN 15 PAGEONE ARTICLE PARENT TRAP HIRING OF ILLEGAL NANNY BY ZOE BAIRD POINTS TO BOOMER BLIND SPOT PROFESSIONAL PARENTS FLOUTING THE LAW BY HIRING ILLEGAL IMMIGRANTS NOT ONLY BREAK THE LAW BUT ALSO PROVIDE THEIR INFANTS AND YOUNG CHILDREN WITH INFERIOR CHILD CARE SINCE RECENT RESEARCH REVEALS THAT OUR LIFETIME PATTERNS OF BEHAVIOR ARE FORMED WITHIN THE FIRST THREE YEARS OF LIFE THIS IS ESPECIALLY DISTRESSING AS TRAINED NANNIES ACCREDITED BY THE AMERICAN COUNCIL OF NANNY SCHOOLS ARE NOW AVAILABLE IN OUR 10 YEARS OF SCHOOLING AMERICAN NANNIES TO ADDRESS THE EMOTIONAL INTELLECTUAL AND SOCIAL DEVELOPMENT OF CHILDREN WE ARE STILL AMAZED AT EDUCATED PARENTS WHO FOR THE SAKE OF A FEW DOLLARS AN HOUR WILL RISK THEIR CHILDREN'S SAFETY AND DEVELOPMENT TO AN UNKNOWN OFTEN NONENGLISHSPEAKING FOREIGN CAREGIVER WHOSE CULTURAL BACKGROUND MAY DIFFER SHARPLY FROM OUR OWN THANK YOU FOR YOUR OBJECTIVE COVERAGE OF THE ZOE BAIRD ILLEGAL NANNY STORY INTERESTING LINES ARE FORMING OVER THIS BATTLE A LIBERAL LIKE RALPH NADER WHO I DOUBT EVER INTERVIEWED 87 POTENTIAL CANDIDATES TO FIND ONE COMPETENT CAREGIVER IS SOUNDING LIKE A CONSERVATIVE A VERY SANCTIMONIOUS ONE TOO AND USUALLY CONSERVATIVE SEN ORRIN HATCH SEEMS BOTH KNOWLEDGEABLE ABOUT THE CHILD CARE CRUNCH AND EMPATHETIC TO PARENTS WHO HAVE TO DEAL WITH IT PERHAPS MR NADER DOESN'T HAVE THE TOTAL CHILD CARE PICTURE THE LATEST 1991 FIGURES FROM THE BUREAU OF LABOR STATISTICS SHOW THAT 38133000 CHILDREN UNDER AGE 18 HAVE MOTHERS IN THE LABOR FORCE FOR THE 267 MILLION SCHOOLAGE CHILDREN THERE ARE ONLY 30000 AFTERSCHOOL PROGRAMS FOR THE 114 MILLION CHILDREN UNDER SIX THERE ARE A MERE 86000 REGULATED CHILD CARE CENTERS AND 118000 REGULATED FAMILY DAY CARE PROVIDERS OBVIOUSLY CHILDREN WHO NEED CHILD CARE ARE OVERWHELMINGLY UNDERSERVED NO WONDER 75 OF MOTHERS ACCORDING TO A POLL BY THE LEAGUE OF AMERICAN CITIES SAY IT'S DIFFICULT TO FIND CHILD CARE MOTHERS WHO DON'T WORK STANDARD OFFICE HOURS AS IS THE CASE WITH MANY PROFESSIONALS LIKE ZOE BAIRD CANNOT USE CENTERBASED OR FAMILY DAY CARE EVEN IF THEY COULD FIND IT READERS OF WORKING MOTHER MAGAZINE HAVE REPORTED THAT SOME CENTERS WILL TAKE A CHILD TO A POLICE STATION IF THE PARENT IS LATE MORE THAN ONCE HIGHEARNER MOTHERS WITH UNEVEN HOURS ARE FORCED TO TURN TO THE ALTERNATIVE OF INHOME CARE HALF A MILLION CHILDREN UNDER THE AGE OF FIVE ARE NOW BEING CARED FOR IN THIS WAY PARENTS WHO ARE FORCED TO RELY ON THE NANNY UNDERGROUND HAVE SO MANY FEARS FOR THEIR CHILDREN'S SAFETY AND EMOTIONAL WELLBEING THAT FIGURING OUT HOW TO PAY SOCIAL SECURITY TAXES IS FAR DOWN THE LIST OF THINGS THAT KEEP THEM UP AT NIGHT FURTHERMORE MOST CAREGIVERS REFUSE TO HAVE ANY DEDUCTIONS TAKEN FROM THEIR ALREADY SMALL WAGES SEN HATCH SEEMS TO UNDERSTAND THAT WORKING PARENTS COPE WITH THE CHILD CARE CRISIS THE WAY RUSSIANS COPE WITH FOOD SCARCITY WHEN THERE'S A DIRE SHORTAGE AND YOUR CHILD'S WELFARE IS AT STAKE YOU HAVE TO TURN TO THE UNDERGROUND PLAY BY ITS RULES AND HOPE THAT YOU NEVER GET NOMINATED FOR ATTORNEY GENERAL REGARDING CARLOS BALL'S JAN 22 EDITORIALPAGE ESSAY ZOE BAIRD THE VIEW FROM EL BARRIO' WHILE I CERTAINLY AGREE WITH MR BALL THAT PEDRO AND MARIA HAVE THE NATURAL RIGHT TO OFFER THEIR SERVICES FOR PAY NEVERTHELESS THEY NO MORE HAVE AN INALIENABLE RIGHT TO IMMIGRATE TO THE US THAN I HAVE TO IMMIGRATE TO GERMANY SIMPLY BECAUSE THE MARK HAPPENS TO BE STRONGER THAN THE DOLLAR MAY I INFORM MR BALL THAT IN THIS COUNTRY WE CALL THE CASUAL MAJORITY IN POWER DEMOCRACY GREEK WORD DEMOKRATIA AMERICAN CITIZENS ELECTED THIS MAJORITY AND THE LAWS OUR REPRESENTATIVES IN GOVERNMENT CREATE ARE OUR LAWS PERHAPS IF THERE WERE MORE RESPECT FOR LAW AND DEMOCRACY ON THE PART OF MR BALL AND OTHERS BACK HOME THERE WOULD BE NO VICTIMS OF A MERCANTILIST SYSTEM THAT TRADITIONALLY HAS AFFORDED LITTLE HOPE AND OPPORTUNITIES TO THE MASSES OUR WILLINGNESS TO ABIDE BY LAW HAS MADE POSSIBLE OUR ECONOMIC PROSPERITY AND OUR COMMITMENT TO DEMOCRACY HAS ENSURED OPPORTUNITY FOR ALL US CITIZENS SEYMOUR MARTIN LIPSET'S JAN 21 EDITORIALPAGE ARTICLE ROOSEVELT REDUX FOR DEMOCRATS URGED PRESIDENT CLINTON TO EMULATE FDR BY LISTENING TO THE DEMOCRATIC LEFT WING WITHOUT SURRENDERING HIS AGENDA TO THEM THE FATE OF ZOE BAIRD UNDERSCORES WHY MR LIPSET'S ADVICE IS OUTDATED SINCE WATERGATE THE LEFT WING OF THE DEMOCRATIC PARTY HAS PLAYED GUERRILLA POLITICS AND IS PERFECTLY WILLING TO SABOTAGE ITS OWN PARTY BY UNDERMINING MODERATES IN THE CONFIRMATION PROCESS THERE ARE SO MANY LAWS IN MODERN AMERICA THAT ONE CAN FIND SOMETHING ON ALMOST EVERYONE AND THOSE RARE SAINTS IN PUBLIC LIFE CAN ALWAYS BE BORKED WHAT WORKED FOR FDR WON'T WORK FOR MR CLINTON YOUR JAN 25 EDITORIAL THE CLINTON WHIRLPOOL STATES ZOE BAIRD WAS HIS CLINTON'S CHOICE BUT HER DEFEAT IS CLEARLY A VICTORY AND DELIGHT FOR HIS PARTY'S LEFT WING IF SO THE DEMOCRATS' LEFT WING MUST INCLUDE REPUBLICAN SENS ALAN SIMPSON AND LARRY PRESSLER SINCE IT WAS CLEARLY THEIR ANNOUNCED INTENTION TO REJECT MS BAIRD NOT THE RELATIVELY INVISIBLE OBJECTIONS OF RALPH NADER AND HIS ALLIES THAT EFFECTIVELY SANK HER LIFEBOAT OBVIOUSLY SOMEBODY ON YOUR EDITORIAL BOARD WANTS VERY BADLY TO TALK ABOUT CLASS RESENTMENTS AND TO LAY BLAME FOR THEIR PERNICIOUS EFFECTS AT THE DEMOCRATS' DOOR THE BAIRD DEBACLE HOWEVER WAS NOT ABOUT CLASS WAR IN THE US BUT TURF WARS IN THE SENATE THE SIGHT OF CONSERVATIVE GOP SENATORS EG ALFONSE D'AMATO DENOUNCING MS BAIRD'S HIRING OF ILLEGALS SIMPLY UNDERSCORES THE OBVIOUS THAT UNDER BOB HE DIDN'T GET A MAJORITY DOLE SENATE REPUBLICANS ARE COMMITTED TO A COURSE OF OBSTRUCTIONISM AND WILL EVEN GO SO FAR AS TO EFFECT TEMPORARILY SOLIDARITY WITH THE BRACEROS IF IT FURTHERS THAT CAUSE GENUINE DEBATE OF IMMIGRATION ISSUES IS OBVIOUSLY NECESSARY BUT USING RHETORIC RELATED TO THE ISSUE TO OBFUSCATE A PARTISAN POWER PLAY DOES NOT FURTHER THAT DEBATE 9302020162 930202 VISHAY COMPLETES ACQUISITION MALVERN PA VISHAY INTERTECHNOLOGY INC SAID IT COMPLETED ITS ACQUISITION OF ROEDERSTEIN GMBH A EUROPEAN MANUFACTURER OF ELECTRONIC PARTS ADDING ABOUT 230 MILLION TO ANNUAL SALES 9302020161 930202 EPA SEEMS TO ALTER CLINTON POSITION ON INCINERATOR BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER IN AN APPARENT REVERSAL OF CLINTON ADMINISTRATION POLICY SUGGESTED THAT THE EPA WON'T ATTEMPT TO BLOCK A CONTROVERSIAL OHIO INCINERATOR FROM CONDUCTING A TEST BURN SEPARATELY MS BROWNER SAID THAT ONE OF HER TOP PRIORITIES WILL BE TO IMPROVE THE EPA'S COLLECTION AND ANALYSIS OF SCIENTIFIC DATA SHE SPOKE FAVORABLY ABOUT THE IDEA OF CREATING WITHIN THE EPA AN OFFICE OF ENVIRONMENTAL STANDARDS WHICH SHE SAID WOULD BE THE ENVIRONMENTAL EQUIVALENT OF THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS THE EAST LIVERPOOL OHIO INCINERATOR BECAME A LIGHTNING ROD LAST DECEMBER WHEN VICE PRESIDENT GORE SAID THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE TEST BURN UNTIL CERTAIN QUESTIONS WERE ANSWERED ABOUT THE PLANT'S SAFETY AND THE PROCESS BY WHICH IT HAD RECEIVED REGULATORY CLEARANCE THE INCINERATOR OPERATED BY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL LTD SWITZERLAND IS SITUATED 1100 FEET FROM AN ELEMENTARY SCHOOL IN THE FINAL DAYS OF THE BUSH ADMINISTRATION THE EPA GRANTED WASTE TECHNOLOGIES PERMISSION TO PROCEED WITH THE TEST BURN A MOVE THAT PROMPTED A COURT CHALLENGE BY THE ENVIRONMENTAL GROUP GREENPEACE THE MATTER IS TO BE SETTLED NEXT WEEK AT A FEDERAL COURT HEARING IN CLEVELAND ASKED IN AN INTERVIEW WHAT POSITION THE EPA WOULD TAKE AT THE HEARING MS BROWNER SAID JUSTICE DEPARTMENT ATTORNEYS WHO ARE HANDLING THE MATTER DON'T THINK THE EPA HAS LEGAL AUTHORITY TO STOP THE TEST BURN BECAUSE THE AGENCY PREVIOUSLY APPROVED IT BUT IF A PENDING GENERAL ACCOUNTING OFFICE INVESTIGATION FINDS THAT THE PLANT POSES A HUMAN HEALTH HAZARD OR WAS IMPROPERLY APPROVED SHE SAID OBVIOUSLY WE WILL TAKE ACTION AT THAT TIME ON THE MATTER OF THE EPA'S APPROACH TO SCIENTIFIC ISSUES MS BROWNER SAID I WOULD FEEL THAT I HAD BEEN SUCCESSFUL IF EPA WERE RECOGNIZED AS BEING A SERIOUS SCIENTIFIC BODY ONE THAT GAVE POLICYMAKERS RELIABLE SCIENTIFIC INFORMATION SHE SAID THE DEPARTMENT'S APPROACH TO SCIENCE HAS BEEN IMPROVING AND PRAISED THE RECENT ADDITION TO THE AGENCY OF A SCIENCE ADVISER AND A SCIENCE ADVISORY BOARD BUT WE'RE STILL TEENAGERS SHE SAID WHAT WE NEED TO DO IS BECOME ADULTS MS BROWNER SAID SHE DIDN'T KNOW WHETHER FUNDS TO BOOST THE EPA'S SCIENCE ROLE WOULD BE INCLUDED IN THE ADMINISTRATION'S 1994 BUDGET TO BE ISSUED LATER THIS MONTH BUT SHE SAID FUNDS WOULD BE OBTAINED AT FIRST THROUGH INTERNAL RESTRUCTURING OF AGENCY SPENDING 9302020159 930202 INTERNATIONAL PHILIPS ELECTRONICS DELAYS HIGHDEFINITION TV OUTPUT A WALL STREET JOURNAL NEWS ROUNDUP PHILIPS ELECTRONICS NV SAID IT WON'T START PRODUCING HIGHDEFINITION TELEVISION SETS THIS YEAR FOR MARKETING IN 1994 AS PLANNED BECAUSE EUROPEAN COMMUNITY SUBSIDIES AREN'T FORTHCOMING LAST YEAR PHILIPS CHAIRMAN JAN TIMMER SAID THE DUTCH ELECTRONICS COMPANY WOULD BE FORCED TO REVIEW ITS HDTV STRATEGY IF THE EC DIDN'T COME UP WITH 500 MILLION EUROPEAN CURRENCY UNITS 606 MILLION IN PROMISED SUBSIDIES TO HELP PRODUCERS AND BROADCASTERS MAKE PROGRAMS IN THE NEW FORMAT BUT IN DECEMBER BRITAIN BLOCKED ANY EC DECISION ARGUING THAT IF HDTV HAS COMMERCIAL PROMISE FINANCING SHOULD COME FROM THE PRIVATE SECTOR A PHILIPS OFFICIAL TOLD A DUTCH NEWSPAPER THE DECISION TO DELAY HDTV PRODUCTION COULD BE REVERSED IF THE EC APPROVES THE SUBSIDIES BY MAY THE SUBSIDIES ARE INTENDED TO HELP PAY FOR THE PRODUCTION OF TV PROGRAMS IN D2MAC AN INTERMEDIATE TECHNOLOGY DEVELOPED BY PHILIPS AND OTHER EUROPEAN ELECTRONICS COMPANIES D2MAC OFFERS EXTRAWIDE PICTURES BUT NOT THE RAZORSHARP IMAGES OF THE FULL HDMAC FORMAT AFTER YEARS OF HEAVY EC SPENDING THE COMMUNITY HAS BECOME SKEPTICAL OF EUROPE'S D2MAC AND HDMAC TECHNOLOGY MOST BROADCASTERS SAY IT IS FAR TOO EXPENSIVE AND HAS LITTLE COMMERCIAL APPEAL THE WHOLLY DIGITAL HDTV TECHNOLOGY BEING DEVELOPED IN THE US HAS FAR MORE PROMISE THE BROADCASTERS ARGUE AND THEY ARE LOBBYING THE EC COMMISSION TO ABANDON HDMAC 9302020158 930202 WHO'S NEWS GOODY PRODUCTS INC GOODY PRODUCTS INC KEARNY NJ ROBERT L EURITT WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES AT THIS MAKER OF HAIR ACCESSORIES SUCCEEDING CHARLES KARRIKER WHO IS ON AN EXTENDED MEDICAL LEAVE OF ABSENCE MR EURITT HAD BEEN VICE PRESIDENT HUMAN RESOURCES FOR NESTLE FOODS CORP 9302020157 930202 FINANCING BUSINESS EZCORP INC EZCORP INC AUSTIN TEXAS FILED A REGISTRATION STATEMENT FOR THE SALE OF TWO MILLION ADDITIONAL SHARES OF CLASS A NONVOTING STOCK PROCEEDS WILL BE USED FOR WORKING CAPITAL OPENING NEW PAWNSHOPS AND REPAYING DEBTS UNDER THE COMPANY'S REVOLVING LINE OF BANK CREDIT THE OFFERING WILL BE MANAGED BY KIDDER PEABODY & CO AND MORGAN SCHIFF & CO IN MARCH EZCORP SOLD 15 MILLION CLASS A SHARES AT 1650 EACH THE PAWNSHOP OPERATOR HAS ABOUT 97 MILLION SHARES OUTSTANDING OF WHICH 46 MILLION ARE CLASS A NONVOTING IN OVERTHECOUNTER TRADING YESTERDAY EZCORP CLOSED AT 1725 A SHARE DOWN 25 CENTS 9302020156 930202 INTERNATIONAL JAPANESE PUBLIC SEEMS TO FORGET POLITICAL SCANDAL BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ONCE AGAIN THE JAPANESE PEOPLE APPEAR WILLING TO FORGET POLITICAL SCANDAL POLLSTERS POLITICIANS AND ANALYSTS SAY THE PUBLIC OUTRAGE THAT FLARED OVER THE SOCALLED SAGAWA KYUBIN AFFAIR IN WHICH TOP RULINGPARTY POLITICIANS GOT ILLEGAL CAMPAIGN CONTRIBUTIONS SEEMS TO BE WANING PEOPLE THINK THE ECONOMY IS MORE IMPORTANT SAYS A FRUSTRATED PARLIAMENT MEMBER BACKING REFORM WITH JAPAN IN RECESSION THEY FORGET QUICKLY WHAT'S MORE THE OPPOSITION PARTIES ARE PREOCCUPIED WITH A SPATE OF INTERNAL BICKERING AND HAVEN'T BEEN ABLE TO CAPITALIZE ON THE SCANDAL AND THE PUBLIC'S ATTENTION HAS BEEN DIVERTED BY LESSCONTROVERSIAL MATTERS SUCH AS THE ENGAGEMENT OF THE CROWN PRINCE AS A RESULT THE RULING LIBERAL DEMOCRATIC PARTY IS BEGINNING TO GET BACK ON ITS FEET AND THE STABILITY OF THE GOVERNMENT IS INCREASING POLITICAL COMMENTATOR MINORU MORITA SAYS THOUGH HE ADDS THAT THE LDP ISN'T NECESSARILY IN THE CLEAR OVER THE LONGER TERM THE CRISIS FACING THE LDP HAS BEEN CONTAINED TEMPORARILY HE SAYS IF A GROUP HEADED BY PARTY BOSS ICHIRO OZAWA MAKES GOOD ON THREATS TO LEAVE THE LDP LATER THIS YEAR MR MORITA PREDICTED THE RULING PARTY'S MAJORITY IN THE PARLIAMENT WILL DISAPPEAR IN DECEMBER A GROUP LED BY MR OZAWA SPLIT FROM THE LDP'S LARGEST FACTION THE 50YEAROLD MR OZAWA AND HIS SUPPORTERS AREN'T NECESSARILY CONCERNED WITH THE SCANDAL BUT INSTEAD ARGUE THAT CHANGE IS NECESSARY BECAUSE JAPAN'S ELDER LEADERS SUCH AS PRIME MINISTER KIICHI MIYAZAWA 73 HAVE FAILED TO RESPOND TO DEMANDS FROM THE US AND OTHER COUNTRIES THAT JAPAN PLAY A GREATER WORLD ROLE THE LDP'S SUPPORT FELL TO NEARRECORD LOWS IN THE MONTHS FOLLOWING A PARTY BOSS'S ADMISSION IN AUGUST THAT HE TOOK ILLEGAL CAMPAIGN CONTRIBUTIONS FROM TOKYO SAGAWA KYUBIN CO A PARCELDELIVERY COMPANY WITH ALLEGED TIES TO GANGSTERS GRASSROOTS ACTIVIST GROUPS RARE IN JAPAN SPROUTED MR MIYAZAWA PROMISED TO ADVOCATE SWEEPING POLITICAL REFORM BUT A YOMIURI SHIMBUN POLL SHOWED THAT PUBLIC SUPPORT FOR MR MIYAZAWA'S CABINET AFTER SLIDING TO 20 IN NOVEMBER JUMPED LATE LAST MONTH TO 29 IN A TV ASAHI SURVEY LAST WEEK 44 OF THE RESPONDENTS SAID ECONOMIC RECOVERY SHOULD BE MR MIYAZAWA'S TOP PRIORITY WHILE ONLY 20 CITED A THOROUGH INVESTIGATION OF THE SAGAWA KYUBIN SCANDAL OVER THE WEEKEND THE JAPANESE PRESS REPORTED THAT PROSECUTORS HAD CLOSED THE BOOKS ON THE SCANDAL WITHOUT CHARGING ANY POLITICIANS TO BE SURE THE ISSUE HASN'T DISAPPEARED MR MIYAZAWA INSISTS HE STILL BACKS REFORM OPPOSITION PARTIES ARE THREATENING TO STALL THE CURRENT PARLIAMENTARY SESSION UNTIL TWO LDP LEADERS FORMER PRIME MINISTER NOBORU TAKESHITA AND MR OZAWA HIS ONETIME UNDERLING AGREE TO TESTIFY ABOUT THE SCANDAL THE PUBLIC HAS DISPLAYED REMARKABLE AMNESIA ABOUT SIMILAR INCIDENTS IN THE PAST HELPING THE LDP MAINTAIN ITS ONEPARTY RULE FOR NEARLY 40 YEARS DESPITE REPEATED INSTANCES OF CORRUPTION IN THE SUMMER OF 1989 THE LDP DID LOSE ITS MAJORITY IN THE PARLIAMENT'S LESSPOWERFUL UPPER HALF AFTER THE RECRUIT SCANDAL IN WHICH A COMPANY DOLED OUT STOCK FOR POLITICAL FAVORS BUT IN THE MOREIMPORTANT LOWERHOUSE ELECTION JUST HALF A YEAR LATER THE PARTY WON A RESOUNDING VICTORY 9302020155 930202 DIVIDEND NEWS UTAH MEDICAL PRODUCTS INC UTAH MEDICAL PRODUCTS INC SALT LAKE CITY ANNOUNCED A 3FOR2 STOCK SPLIT TO BE DISTRIBUTED MARCH 19 TO STOCKHOLDERS OF RECORD MARCH 5 THE COMPANY HAS ABOUT EIGHT MILLION SHARES OUTSTANDING BEFORE THE SPLIT 9302020154 930202 WHO'S NEWS RUPP IS NAMED PRESIDENT OF COLUMBIA UNIVERSITY NEW YORK GEORGE RUPP PRESIDENT OF RICE UNIVERSITY WAS NAMED PRESIDENT OF COLUMBIA UNIVERSITY SUCCEEDING MICHAEL I SOVERN WHO IS RETIRING MR RUPP 50 YEARS OLD SAID IN THE FALL HE WOULD LEAVE RICE AFTER EIGHT YEARS AS ITS LEADER DURING HIS TENURE AS THE HOUSTON UNIVERSITY'S FIFTH PRESIDENT APPLICATIONS FOR ADMISSION NEARLY TRIPLED OUTSIDE FUNDING FOR RESEARCH SUPPORT MORE THAN DOUBLED AND THE UNIVERSITY'S ENDOWMENT GREW TO 12 BILLION FROM 500 MILLION COLUMBIA HAS A 17 BILLION ENDOWMENT BUT WITH 19900 STUDENTS IS NEARLY FIVE TIMES LARGER THAN RICE AND HAS 10 TIMES AS MANY FACULTY MEMBERS MR RUPP'S SELECTION FOLLOWS A SIXMONTH SEARCH AFTER MR SOVERN 62 ANNOUNCED HIS RETIREMENT TO TEACH LAW AND CARE FOR HIS WIFE WHO IS BATTLING CANCER MR RUPP WILL SUCCEED MR SOVERN ON JULY 1 MR RUPP IS A FORMER DEAN OF THE DIVINITY SCHOOL AT HARVARD UNIVERSITY WHERE HE RECEIVED A DOCTORATE IN RELIGION AND HOLDS AN UNDERGRADUATE DEGREE FROM PRINCETON UNIVERSITY AND A BACHELOR OF DIVINITY DEGREE FROM YALE UNIVERSITY 9302020153 930202 LOUISVILLE G&E SELLS INTEREST LOUISVILLE KY LOUISVILLE GAS & ELECTRIC CO SAID IT SOLD A 129 OWNERSHIP INTEREST IN ITS TRIMBLE COUNTY GENERATING UNIT FOR ABOUT 99 MILLION TO INDIANA MUNICIPAL POWER AGENCY THE SALE COMPLETES LG&E'S PLAN TO SELL 25 OF THE GENERATING UNIT NOT INCLUDED IN ITS CUSTOMER RATE BASE THE NEW AGREEMENT REPLACES THE PREVIOUS UNIT POWERPURCHASE AGREEMENT BETWEEN LG&E AND IMPA WHICH WAS SIGNED IN DECEMBER 1991 AND INCLUDED AN OPTION FOR IMPA TO PURCHASE AN INTEREST IN THE PLANT IMPA BASED IN CARMEL INDIANA COMPRISES 31 MUNICIPALITIES 9302020152 930202 BANKAMERICA CORP ACQUISITION SAN FRANCISCO BANKAMERICA CORP SAID IT COMPLETED ITS PREVIOUSLY REPORTED ACQUISITION OF FIRST GIBRALTAR BANK BANKAMERICA SAID IT WILL BEGIN OPERATING THE BRANCHES IMMEDIATELY AS PART OF BANK OF AMERICA TEXAS MAKING IT THE FOURTH LARGEST BANK IN THE STATE THE PURCHASE OF IRVING TEXASBASED FIRST GIBRALTAR WHICH HAS 7 BILLION IN DEPOSITS GIVES BANK OF AMERICA TEXAS 106 BILLION IN DEPOSITS AND DOUBLES ITS NUMBER OF BRANCHES TO 260 BANKAMERICA SAID LAST YEAR THAT IT WOULD PAY 110 MILLION TO BUY FIRST GIBRALTAR FROM MACANDREWS & FORBES HOLDINGS INC WHICH RETAINS ITS FEDERAL SAVINGS CHARTER WITH WHICH IT WILL OPERATE FOUR BRANCHES AS FIRST MADISON BANK 9302020151 930202 IRS BACKS HUMANA SPINOFF LOUISVILLE KY HUMANA INC SAID THE INTERNAL REVENUE SERVICE HAS ISSUED THE TAXFREE RULINGS IT REQUESTED IN CONNECTION WITH ITS PROPOSED SEPARATION OF THE COMPANY'S HOSPITAL AND HEALTHPLAN BUSINESSES THROUGH A SPINOFF THE BOARD PLANS TO SEPARATE HUMANA INTO TWO PUBLICLY HELD COMPANIES EACH HUMANA SHAREHOLDER WILL RECEIVE ONE SHARE OF GALEN HEALTH CARE INC STOCK FOR EACH HUMANA SHARE AFTER THE SEPARATION HUMANA WILL OPERATE THE HEALTH PLAN BUSINESS AND GALEN WILL OPERATE THE HOSPITAL BUSINESS THE SPINOFF IS STILL SUBJECT TO SHAREHOLDER APPROVAL TO BE SOUGHT AT A MEETING TO BE HELD FEB 18 AT HUMANA'S HEADQUARTERS THE TRANSACTION WOULD BE COMPLETED ON OR ABOUT MARCH 1 1993 HUMANA OWNS AND OPERATES 77 HOSPITALS AND HAS ABOUT 17 MILLION MEMBERS IN ITS HEALTH PLANS 9302020149 930202 MEDUSA PURCHASES CEMENT PLANT CLEVELAND MEDUSA CORP SAID IT COMPLETED THE ACQUISITION OF A CEMENT PLANT IN DEMOPOLIS ALA FROM LAFARGE CORP FOR ABOUT 45 MILLION THE PURCHASE INCLUDES LAFARGE'S 810000TON SINGLEKILN PLANT AS WELL AS FOUR CEMENT TERMINALS IN ALABAMA TWO IN GEORGIA AND ONE IN TENNESSEE IN ADDITION MEDUSA WILL ASSUME LEASES ON CEMENT TERMINALS IN DORAVILLE GA AND TALLAHASSEE FLA MEDUSA PRODUCES PORTLAND AND MASONRY CEMENTS MINES AND PROCESSES LIMESTONE PRODUCTS FOR CONSTRUCTION AND INDUSTRIAL USE AND PROVIDES CONSTRUCTION SERVICES FOR HIGHWAY SAFETY 9302020148 930202 SOME GUYS'LL GO FAR OUT TO FIND A NEW REASON NOT TO GET MARRIED BY SAM JAFFE STAFF REPORTER OF THE WALL STREET JOURNAL IF NASHUA NH ENTREPRENEUR DOUGLAS EAKIN GETS MARRIED IT COULD MEAN FINANCIAL RUIN FOR HIS BEST FRIENDS BUT THEY'LL HAVE FUN GOING BROKE THE 28YEAROLD MR EAKIN IS FOUNDER AND PRESIDENT OF BACHELOR TRUST CORP A NOVEL FUND HE DEVISED FOR A GROUP OF 35 FRIENDS MOST OF THEM RECENT UNIVERSITY OF VERMONT GRADUATES THE NOVELTY IS THAT IT OPENS UP AN UNUSUAL INVESTING OPPORTUNITY THE MARRIAGE MARKET TRUST MEMBERS CAN BUY 11 SHARES IN THE GUY THEY CONSIDER TO BE THE LEAST ELIGIBLE BACHELOR IN THE GROUP THE GENERAL POOL NOW 2000 WILL BE INVESTED IN A MUTUAL FUND IF THE SELECTED MAN MARRIES ALL SHARES IN HIM BECOME WORTHLESS WHEN ONLY ONE BACHELOR IS LEFT ALL WHO INVESTED IN HIM SPLIT THE POOL MONEY MR EAKIN AND HIS FRIEND ED CANADAY HAVE HAD THE MOST NUMBER OF SHARES BOUGHT IN THEM EACH WITH 24 HAVING LIVED WITH THE GUY FOR SOME TIME I FIGURED HE WAS A GOOD BET SAYS MR EAKIN'S COLLEGE ROOMMATE KEN MAZER CARROLL NEVILLE EXPLAINS WHY HE INVESTED IN MR CANADAY ANYONE WITH A COLLEGE NICKNAME LIKE EVIL ED' IS NOT GOING TO HAVE AN EASY TIME GETTING MARRIED IF HE MAINTAINS A LIFESTYLE LIKE ANYTHING HE DID IN COLLEGE I'M GOING TO BE A WINNER THE CORPORATION IS PLANNING A MIDFEBRUARY MEETING OF TRUSTEES ON THE AGENDA ARE RULES CLARIFICATIONS SUCH AS WHAT HAPPENS IN THE CASE OF A COMMONLAW MARRIAGE AND A PROPOSED 10FOR1 STOCK SPLIT INITIAL DEMAND FOR SHARES IN THE FUND HAS BEEN SO STRONG THAT A NEW OFFERING IS BEING CONSIDERED AND BECAUSE MOST OF HIS INVESTORS ARE FRATERNITY BROTHERS MR EAKIN PLANS TO MARKET HIS MARRIAGE TONTINE TO OTHER FRATERNITIES I'M HOPING TO HAVE 10 OR 15 FUNDS GOING WITHIN THE NEXT YEAR AND ADD TO THAT FROM THERE HE SAYS TO COVER HIS COSTS MR EAKIN GETS 1 OF THE 11 PAID FOR EACH FUND SHARE AND IF THE IDEA CATCHES ON HE COULD BECOME A PAID FINANCIAL ADVISER OF ANY NEW TRUSTS WHETHER OR NOT MR EAKIN MAKES HIS FORTUNE OFF THE IDEA HIS FRIENDS ARE IN IT MOSTLY FOR THE FUN IT HAS A MONETARY VALUE BUT IT'S ALSO A GREAT WAY TO KEEP IN TOUCH WITH EVERYBODY SAYS MR NEVILLE MAYBE THERE ARE SOME REAL ZEROS IN THIS GROUP SO IT WILL GO ON FOR 30 YEARS AND SOMEONE WILL GET VERY RICH THE BEST STRATEGY FOR PLAYING THIS NEW MARKET MAY BE JOHN ARENA'S I BOUGHT FIVE SHARES IN MYSELF BECAUSE I DON'T SEE MYSELF GETTING MARRIED FOR A WHILE 9302020147 930202 CHARITABLE GROUP ISSUES NEW RULES FOR FUNDRAISERS NATIONAL ORGANIZATION FORBIDS COMMISSIONS AND CREATES SYSTEM FOR ENFORCEMENT BY PAMELA SEBASTIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL SOCIETY OF FUND RAISING EXECUTIVES ADOPTED NEW STANDARDS AND FOR THE FIRST TIME CREATED A POLICING SYSTEM TO HANDLE COMPLAINTS THE 15POINT CODE COVERS PROFESSIONAL PRACTICES SUCH AS FORBIDDING MEMBERS FROM RAISING MONEY ON COMMISSION AND DONOR RIGHTS SUCH AS ALLOWING DONORS TO HAVE THEIR NAMES TAKEN OFF MAILING LISTS THE SOCIETY BASED IN ALEXANDRIA VA ALSO ESTABLISHED AN ENFORCEMENT COMMITTEE THAT CAN EXPEL MEMBERS THE PROFESSIONAL GROUP HAS BEEN WORKING ON THE STANDARDS SINCE 1990 BUT ACKNOWLEDGES THAT THE NEED FOR INCREASED SCRUTINY WAS HIGHLIGHTED BY A SPENDING SCANDAL AT UNITED WAY OF AMERICA A YEAR AGO THE GROUP THE MEMBERSHIP OF WHICH INCLUDES CHARITABLE ORGANIZATIONS' STAFF FUNDRAISERS AS WELL AS CONSULTANTS WANTS THE STANDARDS TO BE A PRACTICAL SUPPLEMENT TO ITS ETHICS CODE THE ETHICAL PRINCIPLES ARE PRETTY LOFTY IDEALS AND THE STANDARDS REALLY BEGIN TO TALK ABOUT SOME OF THE SPECIFIC ISSUES SAID PATRICIA LEWIS PRESIDENT THE PROFESSIONAL SOCIETY HAS 13500 MEMBERS BUT THERE ARE THOUSANDS OF PEOPLE INVOLVED IN CHARITABLE FUND RAISING WHO AREN'T MEMBERS THE PROHIBITIONS AGAINST MEMBERS WORKING ON COMMISSION AND ACCEPTING FINDER'S FEES TACKLE TWO LONGSTANDING CONCERNS IN THE PROFESSION AMONG OTHER THINGS THE NEW RULES ALSO REQUIRE MEMBERS TO KEEP CONSTITUENT INFORMATION CONFIDENTIAL TO DISCLOSE ALL CONFLICTS OF INTEREST AND TO RECOGNIZE THAT ALL DONOR AND PROSPECT INFORMATION IS THE PROPERTY OF THE SOLICITING INSTITUTION THEY ARE EXCELLENT STANDARDS AND THE FACT THAT THEY HAVE A MECHANISM FOR COMPLAINTS SAYS THEY'RE SERIOUS SAID KENNETH ALBRECHT PRESIDENT OF THE NATIONAL CHARITIES INFORMATION BUREAU A WATCHDOG GROUP IN NEW YORK THE STANDARDS REQUIRE THE SOCIETY'S MEMBERS TO WORK ON A SALARY BASIS ONLY AND TO ESCHEW INCENTIVEBASED FUND RAISING SUCH FUND RAISING HAS COME UNDER FIRE IN RECENT YEARS FOR THE PROBLEMS IT CAN PRESENT WHEN FUNDRAISERS TALK PEOPLE UP TO LEVELS THAT ARE INAPPROPRIATE SAID MR ALBRECHT SUCH A PROHIBITION FOR THE SOCIETY'S FUNDRAISING EXECUTIVES IS APPROPRIATE HE ADDS ON THE OTHER HAND MR ALBRECHT NOTED THAT PERCENTAGEBASED FUND RAISING CAN MAKE SENSE FOR SMALL NEW CHARITIES THAT CAN'T AFFORD A FLAT FEE TO ENFORCE THE STANDARDS THE GROUP OUTLINED DETAILED PROCEDURES RUNNING FROM COMPLAINT THROUGH FINAL APPEAL COMMITTEE ACTION CAN RANGE FROM A NOCAUSE FINDING TO A CENSURE SUSPENSION OR EXPULSION THE NAMES OF EXPELLED MEMBERS WILL BE PUBLISHED IN THE GROUP'S NEWSLETTER 9302020146 930202 MARKETING & MEDIA FROM FROZEN DINNERS TO STYLING GELS MICROWAVE IS MOVING INTO NEW AREAS BY EBEN SHAPIRO HIDE YOUR POODLE AS THE INTEREST IN MICROWAVE COOKING DECLINES PROPOSALS FOR ALTERNATIVE USES ARE GETTING MORE OUTLANDISH AND WHILE NO ONE HAS YET SUGGESTED A MICROWAVE HAIR DRYER FOR LITTLE FIFI ONE INVENTOR HAS PROPOSED A VERSION FOR PEOPLE JOHN GERLING A CONSULTANT IN TWAIN HARTE CALIF WHO RECEIVED THE PITCH RESPONDED WITH A TERSE ASSESSMENT IT WOULD COAGULATE THE EYEBALLS AND CURDLE THE BRAIN A FEW RESEARCHERS ARE DEVELOPING LESS LETHAL PRODUCTS THOUGH AS WELL AS WAYS TO USE MICROWAVE ENERGY IN CLOTHES DRYERS TOYS AND OTHER PRODUCTS THE MOST PROMISING CATEGORY MAY BE HEALTH AND BEAUTY AIDS SUCH AS MICROWAVABLE MASSAGE CREAMS AND HAIR OILS THE ENERGY ONCE EXPENDED ON CREATING FROZEN FEASTS IS NOW DIRECTED AT DEVELOPING THE PERFECT MICROWAVABLE STYLING GEL IT WILL BE A VERY BIG CATEGORY VOWS ROBERT F SCHIFFMANN A MICROWAVE CONSULTANT IN NEW YORK BUT ONLY A FEW NONFOOD PRODUCTS HAVE MADE IT ONTO DRUGSTORE SHELVES SO FAR FEAR OF BURNS IS ONE BARRIER GIVEN THE OVENS' ERRATIC HEATING PROPERTIES SOME COMPANIES ARE RELUCTANT TO RISK THEIR CUSTOMERS' SKIN OR THE THREAT OF LITIGATION BY MARKETING SALVES HEATED IN THE MICROWAVE REGULATORY OVERSIGHT IS ANOTHER HURDLE WITH SAFETY CONCERNS ABOUT RADIO WAVES ON THE RISE THE FOOD AND DRUG ADMINISTRATION MUST CERTIFY NEW MICROWAVE PRODUCTS ARE SAFE NONETHELESS ONE ALREADY PAINFUL SEGMENT IN PERSONAL CARE HAS GONE HIGH TECH IN THE DARK AGES OF HAIR REMOVAL WOMEN USING HOT WAX HAD TO LABOR OVER A STOVETOP ENDLESSLY STIRRING A MELTING BLOCK BUT 18 MONTHS AGO LEE PHARMACEUTICALS INC OF SOUTH EL MONTE CALIF INTRODUCED A MICROWAVABLE VERSION OF ITS ZIP PRODUCT NAIR OWNED BY CARTERWALLACE INC HAS ALSO INTRODUCED A MICROWAVABLE HAIR REMOVER TO ADDRESS SAFETY CONCERNS TED DETTAFF PRESIDENT OF LEE'S CONSUMER PRODUCTS DIVISION HAD A TEMPERATURE STRIP APPLIED TO THE SIDE OF EACH CONTAINER IT IS PRETTY DIFFICULT TO BURN YOURSELF UNLESS YOU AREN'T PAYING ATTENTION HE SAYS BUT THE STRIP HAS DONE LITTLE TO ALLAY SOME EXPERTS' CONCERNS YOU COULD BURN YOURSELF PRETTY BADLY SAYS MR SCHIFFMANN THE MICROWAVE CONSULTANT BUT HE SEES OTHER POSSIBILITIES HE ONCE DEVELOPED A MICROWAVE BLOOD WARMER TO HELP HOSPITALS DEFROST PLASMA HE HAS ALSO BEEN APPROACHED BY COMPANIES INTERESTED IN PRODUCTS RANGING FROM A MICROWAVABLE VERSION OF CREEPY CRAWLERTYPE FAKE INSECTS TO A CONTACTLENS CLEANING SOLUTION THAT IS STERILIZED IN THE MICROWAVE INVENTOR RUDY C PESCI IN LAKE OSWEGO ORE HAS BEEN SEARCHING FOR BACKERS FOR HIS MICROWAVE CLOTHES DRYER FOR FIVE YEARS IN THE EARLY VERSIONS HE RECALLS THE DEVICE WAS SO POWERFUL I WELDED COINS TOGETHER BUT SINCE THEN HE HAS LOWERED THE TEMPERATURE OF THE HIGH SETTING SEE RELATED ARTICLE MARKETSCAN MANY FOOD COMPANIES FIND THE PROSPECTS FOR MICROWAVE PRODUCTS AREN'T THAT HOT WSJ FEB 2 1993 9302020145 930202 GANNETT COMPLETES TRANSACTIONS ARLINGTON VA GANNETT CO SAID IT COMPLETED THE ACQUISITION OF THE HONOLULU ADVERTISER AND THE SALE OF THE STARBULLETIN NEWSPAPERS GANNETT ACQUIRED THE 105000CIRCULATION ADVERTISER FROM PERSIS CORP AND SOLD THE 88000CIRCULATION STARBULLETIN TO LIBERTY NEWSPAPERS LP WHOSE GENERAL PARTNER IS A CORPORATION OWNED BY RUPERT PHILLIPS OF DESTIN FLA SALES PRODUCTION DISTRIBUTION AND BUSINESS OPERATIONS OF THE TWO NEWSPAPERS HAVE BEEN HANDLED COOPERATIVELY UNDER A JOINT OPERATING AGREEMENT THAT WILL CONTINUE ANOTHER 20 YEARS GANNETT PUBLISHES 82 DAILY NEWSPAPERS OWNS TELEVISION AND RADIO STATIONS AND OPERATES OUTDOOR ADVERTISING 9302020144 930202 SCHLUMBERGER PURCHASES STAKE NEW YORK SCHLUMBERGER LTD SAID IT COMPLETED THE PURCHASE OF DOW CHEMICAL CO'S 50 INTEREST IN THE DOWELL SCHLUMBERGER GROUP OF COMPANIES THE OILFIELD SERVICES GIANT HAD ANNOUNCED IN DECEMBER PLANS TO ACQUIRE THE INTEREST FOR 675 MILLION IN CASH AND A WARRANT TO PURCHASE 75 MILLION SHARES OF SCHLUMBERGER STOCK WITH AN EXERCISE PRICE OF 5995 THE WARRANT EXPIRES IN 7 1/2 YEARS DOW CHEMICAL HAS SAID IT VALUES THE WARRANT AT 125 MILLION FOR TAX PURPOSES DOWELL SCHLUMBERGER PROVIDES CEMENTING STIMULATION COILED TUBING AND OTHER SERVICES TO OILFIELD COMPANIES 9302020142 930202 INTERNATIONAL PIONEER RETHINKS QUICK DISMISSAL OF 35 MANAGERS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO PIONEER ELECTRONIC CORP BACKED AWAY FROM ITS CONTROVERSIAL PLAN TO FORCIBLY RETIRE 35 MANAGERS BY JAN 31 ILLUSTRATING ONCE AGAIN HOW DIFFICULT IT IS FOR JAPANESE COMPANIES TO RESTRUCTURE DURING ROUGH ECONOMIC TIMES A SPOKESMAN FOR PIONEER SAID THE AUDIOVISUAL EQUIPMENT MAKER EXPECTS ALL OF THE MANAGERS TARGETED FOR DISMISSAL TO LEAVE THE COMPANY AT SOME POINT BUT THAT WE HAVE WITHDRAWN THE TIME LIMIT OF JAN 31 HE SAID THERE WAS NO NEW DEADLINE AND THAT THE AFFECTED EMPLOYEES ALL OVER THE AGE OF 50 WOULD LEAVE UNDER MUTUAL AGREEMENT WHICH INCLUDES FINDING A SATISFACTORY NEXT JOB IN LATE DECEMBER PIONEER TOLD A GROUP OF MANAGERS IT CONSIDERED PARTICULARLY UNPRODUCTIVE THAT THEY HAD TO VOLUNTEER FOR AN EARLY RETIREMENT PROGRAM WITHIN ONE MONTH OR ESSENTIALLY BE FIRED AT THE TIME THE COMPANY SAID THE LAYOFFS WERE DESIGNED TO SHOCK ITS WHITECOLLAR WORKERS INTO GREATER EFFICIENCY EVEN THOUGH THE NUMBER AFFECTED WAS SMALL THE ANNOUNCEMENT CREATED A STIR IN JAPAN WHERE COMPANIES PRIDE THEMSELVES ON PROVIDING LIFETIME EMPLOYMENT THROUGH GOOD TIMES AND BAD PIONEER'S ACTION WAS THE FIRST CLEAR EXAMPLE OF A BLUECHIP JAPANESE COMPANY FIRING EXCESS WORKERS PIONEER ALONG WITH THE REST OF THE ELECTRONICS INDUSTRY HAS WATCHED ITS EARNINGS PLUMMET IN RECENT MONTHS BUT UNLIKE US CORPORATIONS WHICH QUICKLY SLASH PAYROLLS IN DIFFICULT TIMES JAPANESE COMPANIES VIEW LAYOFFS AS THE COSTCUTTING MEASURE OF LAST RESORT THE PUBLICITY OVER ITS ACTION APPEARS TO HAVE EMBARRASSED PIONEER INTO ADOPTING ITS MORE LENIENT APPROACH SOME ECONOMISTS SAY THAT JAPAN'S AVERSION TO QUICKLY TRIMMING ITS WORK FORCE OUTRIGHT DURING DOWNTURNS WILL SIMPLY PROLONG THE EARNINGS SLUMP THAT HAS HIT ALMOST EVERY INDUSTRY YESTERDAY THE PIONEER SPOKESMAN SAID THE PRESS MISUNDERSTOOD THE ORIGINAL PLAN THE JAN 31 DATE HAD ALWAYS BEEN INTENDED AS A GOAL NOT A DEADLINE HE SAID HE WOULDN'T SAY WHETHER ANY OF THE 35 MANAGERS HAD ALREADY LEFT THE COMPANY 9302020141 930202 TEXAS INSTRUMENTS INC PLANS TO LAY OFF 5 OF DEFENSE WORK FORCE DALLAS TEXAS INSTRUMENTS INC SAID IT WILL LAY OFF MORE THAN 5 OF ITS DEFENSERELATED WORK FORCE BECAUSE OF A SLOWDOWN IN MILITARY CONTRACTS THE ELECTRONICS COMPANY SAID 815 JOBS WOULD BE ELIMINATED IN DEFENSE GROUPS AND AN ADDITIONAL 60 IN BUSINESS SYSTEMS ABOUT HALF OF THE LAYOFFS WILL OCCUR THIS WEEK AT THE COMPANY'S DEFENSE SYSTEMS & ELECTRONICS GROUP IN TEXAS AND CALIFORNIA WORK FORCE REDUCTIONS WILL ALSO BE MADE IN THE COMPANY'S SEMICONDUCTOR GROUP MILITARY PRODUCTS OPERATION BY THE END OF 1993 AFFECTING BOTH PRODUCTION AND MANAGEMENT RANKS LAST YEAR TEXAS INSTRUMENTS LAID OFF 2500 WORKERS AND IN 1991 THE COMPANY ELIMINATED 7000 JOBS SEPARATELY TEXAS INSTRUMENTS SAID IT REACHED AN AGREEMENT WITH CLOSELY HELD CCUBE MICROSYSTEMS OF MILPITAS CALIF TO DEVELOP INTEGRATED CIRCUITS FOR VIDEO AND AUDIO COMPRESSION TERMS OF THE AGREEMENT WEREN'T DISCLOSED THE COMPANY SAID THE AGREEMENT PROVIDES EACH COMPANY RIGHTS TO DEVELOP PRODUCTS BASED ON THE OTHER COMPANY'S CODER AND DECODER PRODUCTS THE TWO COMPANIES ALSO PLAN TO ENGAGE IN SOME FUTURE COOPERATIVE DEVELOPMENT PROGRAMS TEXAS INSTRUMENTS SAID THE COMPANIES WILL WORK TOGETHER TO DEVELOP INEXPENSIVE DEVICES FOR THE VIDEO AND AUDIO MARKETS INCLUDING COMPACT DISKBASED KARAOKE PLAYERS COMPACT DISKBASE VIDEO GAMES AND DIGITAL TELEVISION BROADCAST RECEIVERS FOR HIGHDEFINITION TELEVISION DIGITAL CABLE TV AND DIRECT BROADCAST SATELLITE TV 9302020140 930202 INTERNATIONAL SWEDISH CAR REGISTRATIONS DROP STOCKHOLM SWEDISH NEWCAR REGISTRATIONS CONTINUED THEIR DECLINE IN JANUARY PLUMMETING 39 TO 8473 UNITS FROM 13978 A YEAR EARLIER ACCORDING TO THE NATIONAL STATISTICS AGENCY THE DROP FOLLOWS YEARONYEAR DECLINES OF 23 IN DECEMBER 41 IN NOVEMBER AND 36 IN OCTOBER THE AGENCY SAID IN JANUARY NEWTRUCK REGISTRATIONS FELL 38 TO 720 FROM 1166 A YEAR EARLIER THE AGENCY SAID 9302020139 930202 NL INDUSTRIES UNIT TO SELL STAKE HOUSTON NL INDUSTRIES INC SAID ITS UNIT KRONOS INC AGREED TO SELL 50 OF ITS LOUISIANA PIGMENT MANUFACTURING PLANT FOR 200 MILLION KRONOS WILL SHARE OPERATIONS OF THE PLANT WITH TIOXIDE GROUP A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC OF LONDON IN A JOINT VENTURE THE LAKE CHARLES LA FACILITY HAS AN ANNUAL CAPACITY OF 100000 METRIC TONS OF TITANIUM DIOXIDE A WHITE PIGMENT THAT MAKES PAINT PAPER AND PLASTICS WHITE OR OPAQUE A METRIC TON IS 22046 POUNDS IN ADDITION TO THE 200 MILLION THE JOINT VENTURE AGREEMENT PROVIDES FOR AN EXCHANGE OF EACH COMPANY'S TECHNOLOGY BUT RESTRICTS THE EXCHANGED PRODUCT TECHNOLOGIES IN EUROPE FOR THREE YEARS THE TRANSACTION IS SUBJECT TO AMONG OTHER THINGS OBTAINING FINANCING PREPARING DEFINITIVE AGREEMENTS AND A REVIEW BY US ANTITRUST AUTHORITIES 9302020138 930202 PEPPERAND SALT JUST IN THE NUKE OF TIME IS SOMEONE ELSE'S OR MINE 9302020137 930202 INTERNATIONAL ISRAEL TO REPATRIATE 100 PALESTINIANS IT DEPORTED RETURN THE REST LATER RABIN IS SEEKING TO RENEW MIDEAST PEACE PROCESS AVERT UN SANCTIONS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM ISRAEL ATTEMPTING TO RESTART THE STALLED MIDDLE EAST PEACE TALKS AND BLOCK A UNITED NATIONS VOTE TO IMPOSE SANCTIONS SAID IT WOULD IMMEDIATELY REPATRIATE ABOUT 100 OF THE MORE THAN 400 PALESTINIANS IT DEPORTED TO LEBANON AND BRING BACK THE REMAINDER WITHIN A YEAR PRIME MINISTER YITZHAK RABIN SAID AT A JERUSALEM NEWS CONFERENCE THE ISRAELI MOVE WAS PART OF A PACKAGE DEAL REACHED WITH THE CLINTON ADMINISTRATION WHICH HE SAID HAS AGREED TO TRY TO PREVENT ANY UN RESOLUTION IMPOSING SANCTIONS ON ISRAEL AND TO WORK TO RENEW THE PEACE NEGOTIATIONS WHOEVER THOUGHT THE WHOLE ISSUE COULD END WITHOUT A COMPROMISE WITHOUT A CONTRIBUTION BY ISRAEL WAS BEING EITHER NAIVE OR DISINGENUOUS SAID YOSSI SARID THE ENVIRONMENT MINISTER AFTER A SPECIAL CABINET SESSION ON THE ISSUE LATE LAST NIGHT WE ARE GETTING FULL BACKING FROM THE AMERICANS WE ARE ELIMINATING OUR COLLISION COURSE WITH THE UN SECURITY COUNCIL THERE IS NO LONGER ANY FEAR OF SANCTIONS BY THE SECURITY COUNCIL AT THE UNITED NATIONS US SECRETARY OF STATE WARREN CHRISTOPHER SAID ISRAEL'S ACTION SHOULD HAVE THE EFFECT OF MAKING IT UNNCESSARY FOR THERE TO BE FURTHER ACTION BY THE SECURITY COUNCIL THAT MIGHT INVOLVE SANCTIONS ON ISRAEL ANY FURTHER UN ACTION ON THE MATTER CAN EVEN UNDERCUT THE PROCESS WHICH IS ALREADY UNDER WAY HE SAID THE US OFFICIAL IN NEW YORK FOR HIS FIRST OFFICIAL VISIT TO THE UN TRIED TO FINESSE THE FACT THAT ISRAEL'S SOLUTION ISN'T IN STRICT COMPLIANCE WITH A UN RESOLUTION CALLING FOR THE IMMEDIATE RETURN OF THE DEPORTEES HE EMPHASIZED THAT MR RABIN HAS BEGUN A PROCESS THAT WILL RETURN ALL DEPORTED PALESTINIANS WITHIN A YEAR THE US HAD BEEN URGING MR RABIN TO COME UP WITH SUCH A SOLUTION SO THAT WASHINGTON COULD SELL IT AT THE UN THE PALESTINE LIBERATION ORGANIZATION IMMEDIATELY REJECTED THE ISRAELI DECISION YASSER ABEDRABBO A PLO EXECUTIVE COMMITTEE MEMBER SAID AT PLO HEADQUARTERS IN TUNISIA THAT IT WAS AN ATTEMPT TO CIRCUMVENT A UN RESOLUTION DEMANDING THE RETURN OF THE DEPORTEES TO THEIR HOMES IN ISRAEL BUT MR RABIN SAID THE DEAL WOULD APPLY WHETHER OR NOT THE PALESTINIANS LIVING IN A CAMP IN SOUTHERN LEBANON ACCEPTED THE ISRAELI OFFER LEADERS IN ISRAEL'S LIKUD OPPOSITION BLOC CALLED THE MOVE A SURRENDER TO INTERNATIONAL PRESSURE LAST NIGHT ON ISRAELI TELEVISION FORMER ISRAELI AMBASSADOR TO THE UN BENJAMIN NETANYAHU SAID THE RABIN GOVERNMENT HADN'T TRIED HARD ENOUGH TO EXPLAIN THE COUNTRY'S FIGHT AGAINST TERRORISM AND THE DANGER IT POSES TO THE PEACE PROCESS IF THIS WAS GOING TO BE THE RESULT IT WOULD HAVE BEEN PREFERABLE NOT TO HAVE DEPORTED THEM SAID MR NETANYAHU WHO IS CONTENDING TO BECOME LIKUD LEADER THE ISRAELI ANNOUNCEMENT COMES SIX WEEKS AFTER ISRAEL DEPORTED 413 SUSPECTED MEMBERS OF THE RADICAL MUSLIM GROUPS HAMAS AND ISLAMIC JIHAD WHICH ARE BLAMED FOR KILLING SIX ISRAELI SOLDIERS IN RECENT WEEKS ISRAEL HAS ALLOWED THE RETURN OF 14 OF THE DEPORTEES SAYING THEY WERE MISTAKENLY EXPELLED FIVE OTHERS HAVE BEEN HOSPITALIZED MOST OF THE ORIGINAL DEPORTATION ORDERS WERE FOR 18 MONTHS TO TWO YEARS BUT UNDER THE DEAL WORKED OUT WITH THE AMERICANS THOSE NOT RETURNED IMMEDIATELY WOULD HAVE THEIR TERMS OF EXILE CUT IN HALF AND THEY WOULD BE BROUGHT BACK OVER THE NEXT YEAR ISRAEL SAID THE DEPORTEES WHO AREN'T IMMEDIATELY RETURNED WOULD STAY IN LEBANON WHERE INTERNATIONAL HUMANITARIAN ORGANIZATIONS WOULD BE ALLOWED TO PROVIDE AID VIA HELICOPTER OR GO ABROAD DESPITE THE THREAT OF UN SANCTIONS MOST ISRAELIS SOLIDLY SUPPORTED THE DEPORTATIONS THOUGH MR RABIN HAS BEEN CRITICIZED FOR NOT ANTICIPATING THE INTERNATIONAL REACTION TO THE EXPULSIONS LAST WEEK THE ISRAELI SUPREME COURT UPHELD THE VALIDITY OF THE DEPORTATIONS BUT SAID THE GOVERNMENT HAD ACTED IMPROPERLY WHEN IT EXPELLED THE MEN WITHOUT A HEARING THIS WHOLE INCIDENT HAS BEEN A SERIES OF MISCALCULATIONS IN THE END ISRAEL HAD NO CHOICE BUT TO BACK DOWN SAID ITZHAK GALNOOR AN ANALYST WITH THE ISRAEL DEMOCRACY INSTITUTE A JERUSALEM THINK TANK THE CLINTON ADMINISTRATION'S EFFORT TO RESOLVE THE CRISIS APPARENTLY OFFERED MR RABIN A FACESAVING WAY TO BACK AWAY FROM HIS DECISION MR RABIN SAID THE COMPROMISE WAS NONE TOO EASY BUT THAT IT HAD BEEN IMPORTANT TO REACH AN UNDERSTANDING WITH THE US IN THE CONFRONTATION IN THE INTERNATIONAL ARENA MR RABIN DECLINED TO COMMENT ON WHETHER ISRAEL WOULD CHOOSE TO USE DEPORTATIONS IN THE FUTURE BUT GOVERNMENT OFFICIALS SAID ON ISRAELI RADIO LAST NIGHT THAT THE CURRENT COMPROMISE DIDN'T RULE OUT THE POSSIBILITY 9302020136 930202 ZEOS LAUNCHES COMPUTER MODEL MINNEAPOLIS ZEOS INTERNATIONAL LTD INTRODUCED A NEW SUBNOTEBOOK COMPUTER MODEL THAT WEIGHS LESS THAN FOUR POUNDS STARTING AT 1495 THE CONTENDA COMPUTER OPERATES ON AN INTEL 386SL MICROPROCESSOR AND COMES WITH AN 80MEGABYTE HARD DISK FOR DATA STORAGE TWO MEGABYTES OF RANDOM ACCESS MEMORY AND A BUILTIN TRACKBALL OR POINTING DEVICE THE COMPANY SAID THE SUBNOTEBOOK PRODUCT WHICH IS SMALLER THAN A NOTEBOOK MODEL IS INTENDED TO COMPETE WITH SIMILAR PRODUCTS DEVELOPED BY DELL COMPUTER CORP AND GATEWAY 2000 THAT ARE ALREADY ON THE MARKET 9302020135 930202 CREDIT RATINGS BCE INC MONTREAL STANDARD & POOR'S CORP SAID IT LOWERED ITS RATING ON BELL CANADA'S LONGTERM DEBT TO DOUBLEAMINUS FROM DOUBLEA AFFECTING 15 BILLION OF DEBT BELL CANADA IS A UNIT OF BCE S&P SAID THE DOWNGRADE REFLECTS THE INCREASED BUSINESS RISK AND LIKELY REVENUE LOSS FOLLOWING A RECENT COURT RULING UPHOLDING A CANADIAN COMMISSION'S DECISION TO DEREGULATE LONGDISTANCE VOICE COMMUNICATIONS UNDER THE DEREGULATION PLAN BELL CANADA AND OTHER AFFECTED TELEPHONE COMPANIES WILL HAVE TO COVER 70 OF STARTUP COSTS TO CONNECT NEW COMPETITORS THE RATING AGENCY ALSO CITED THE EMERGENCE OF A VIABLE COMPETITIVE CHALLENGE TO BELL CANADA UNITEL COMMUNICATIONS INC HAS STARTED OFFERING LONGDISTANCE SERVICES AND ITS RECENT LINK WITH AMERICAN TELEPHONE & TELEGRAPH CO STRENGTHENS ITS COMPETITIVE CHALLENGE S&P SAID S&P SAID IT BELIEVES BELL CANADA WILL BE ABLE TO MAINTAIN A SOUND FINANCIAL PROFILE AND SAID THE RATINGS OUTLOOK IS STABLE BELL CANADA OFFICIALS COULDN'T BE REACHED TO COMMENT 9302020134 930202 WHO'S NEWS EMONS HOLDINGS INC EMONS HOLDINGS INC YORK PA SCOTT F ZIEGLER 36 YEARS OLD WAS NAMED VICE PRESIDENT CONTROLLER AND SECRETARY AT THIS FREIGHTTRANSPORTATION AND DISTRIBUTIONSERVICES CONCERN MR ZIEGLER WHO HAD BEEN DIRECTOR OF FINANCE AT MASTER POWER INC A WESTMINSTER MD MAKER OF INDUSTRIAL AIR TOOLS SUCCEEDS JAMES RYERSON WHO RESIGNED LAST MONTH 9302020133 930202 MCCLATCHY PROFIT CLIMBS 15 SACRAMENTO CALIF MCCLATCHY NEWSPAPERS INC BUOYED BY COST CONTROLS AND LOWER NEWSPRINT PRICES SAID FOURTHQUARTER NET INCOME CLIMBED 15 TO 92 MILLION OR 32 CENTS A SHARE FROM 79 MILLION OR 28 CENTS A SHARE A YEAR EARLIER REVENUE GREW 52 TO 1173 MILLION FROM 1115 MILLION THE NEWSPAPER CHAIN SAID NET FOR THE YEAR WAS HELD DOWN BY CHARGES FOR AN EARLY RETIREMENT PROGRAM AND OTHER ONETIME COSTS BUT STILL INCREASED 26 TO 298 MILLION OR 104 A SHARE FROM 237 MILLION OR 83 CENTS A SHARE REVENUE CLIMBED 31 TO 4402 MILLION FROM 4268 MILLION 9302020132 930202 AUDIO/VIDEO AFFILIATES SALES RISE DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID SAME STORE SALES IN JANUARY ROSE 22 FROM A YEAR AGO 9302020131 930202 WHEELINGPITTSBURGH LIFTS PRICES WHEELING WVA WHEELINGPITTSBURGH STEEL CORP SAID IT WILL INCREASE THE BASE PRICES OF HOTROLLED AND COLDROLLED SHEET AND STRIP PRODUCTS ABOUT 5 OR 20 A TON THE INCREASES FOLLOW SIMILAR BOOSTS OF 4 TO 5 LAST MONTH BY OTHER STEELMAKERS 9302020130 930202 VIRATEK'S PUBLIC SALE OF UNITS COSTA MESA CALIF VIRATEK INC A DRUG RESEARCH CONCERN SAID IT EXPECTS TO RAISE ABOUT 91 MILLION FROM THE PUBLIC SALE OF ABOUT 14 MILLION OF ITS UNITS AT 775 EACH VIRATEK IS 71OWNED BY ICN PHARMACEUTICALS INC EACH UNIT CONSISTS OF ONE SHARE OF VIRATEK COMMON STOCK AND ONE STOCK PURCHASE UNIT PROCEEDS FROM THE OFFERING WILL BE USED FOR DRUG RESEARCH AND DEVELOPMENT AND FOR GENERAL WORKING CAPITAL PURPOSES VIRATEK SAID HJ MEYERS & CO BEVERLY HILLS CALIF MANAGED THE UNDERWRITING GROUP UNDERWRITERS WERE GRANTED AN OPTION TO PURCHASE AS MANY AS 206250 ADDITIONAL UNITS TO COVER OVERALLOTMENTS 9302020129 930202 WHO'S NEWS CRAY RESEARCH INC CRAY RESEARCH INC EAGAN MINN DON F WHITING WAS NAMED EXECUTIVE VICE PRESIDENT CUSTOMER SERVICE MR WHITING 53 HAD BEEN VICE PRESIDENT CUSTOMER SERVICE FOR THE SUPERCOMPUTER MAKER 9302020128 930202 LEISURE & ARTS ON SPORTS BILLS FOLD UNDER COWBOY PRESSURE BY FREDERICK C KLEIN PASADENA CALIF MARV LEVY THE BUFFALO BILLS COACH IS A HISTORIAN BY ACADEMIC TRAINING NOT A MATHEMATICIAN BUT IN ONE OF THE NUMEROUS INTERVIEWS HE GAVE IN THE DAYS LEADING UP TO THE SUPER BOWL HE SHOWED A FIRM GRASP OF FOOTBALL'S ESSENTIAL NUMBERS YOU HAVE TWO TEAMS BUT ONLY ONE FOOTBALL HE SAID THE TEAM THAT HAS THE BALL MOST WILL HAVE A BETTER CHANCE TO DO THINGS THAN THE TEAM THAT DOESN'T UNHAPPILY FOR LEVY AND OTHERS OF THE BUFFALO PERSUASION THE BILLS PLAYERS LACKED A FIRM GRASP ON THE OBJECT OF THEIR DESIRE IN THE ROSE BOWL HERE ON SUNDAY AND SUFFERED ACCORDINGLY EIGHT TIMES THEY FUMBLED THE SLIPPERY SPHEROID FIVE TIMES INTO THE HANDS OF THEIR FOES THE DALLAS COWBOYS AND ON FOUR OTHER OCCASIONS THEIR QUARTERBACKS' PASSES WERE INTERCEPTED BY VIRTUE OF THEIR GENEROSITY THE GAME WAS OVER BEFORE IT WAS OVER WITH THE BUMPTIOUS COWBOYS TURNING WHAT PROMISED TO BE A FAIRLY EVEN MATCH INTO A 5217 ROUT THAT THE GAME REALLY WASN'T AS ONESIDED AS THE FINAL SCORE INDICATED WAS LITTLE CONSOLATION TO THE LOSERS THEIR FANS OR THOSE AMONG THE ESTIMATED 125 MILLION AMERICAN TELEVISION VIEWERS WHO SIMPLY WANTED TO PASS A FEW INTERESTING HOURS ON A SUNDAY AFTERNOON AND EVENING THE COWBOYS' TOTAL YARDAGE EDGE WAS A SCANT 46 408 TO 362 AND THE BILLS SQUANDERED A COUPLE OF FIRSTHALF TOUCHDOWN OPPORTUNITIES THAT MIGHT HAVE TURNED MATTERS IN THEIR FAVOR THIS WAS NO SIMPLE SKEWERING LIKE THE CHICAGO BEARS' 4610 VICTORY OVER THE NEW ENGLAND PATRIOTS IN THE GAME'S 1986 EDITION OR THE SAN FRANCISCO 49ERS' 5510 WIN OVER THE DENVER BRONCOS IN 1990 BUT THE FACT THAT THIS WAS THE NINTH CONSECUTIVE YEAR THAT THE AMERICAN CONFERENCE TEAM HAD FALLEN TO THE NATIONAL CONFERENCE REP IN THE NATIONAL FOOTBALL LEAGUE'S ANNUAL BIG GAME AND THE THIRD STRAIGHT TIME THE LOSER WAS BUFFALO MADE THE DEFEAT ESPECIALLY HARD TO SWALLOW TO LOSE SO BADLY WAS DISAPPOINTING ALLOWED LEVY WHOSE TEAMS HAVE BOWED BY THE INCREASING MARGINS OF ONE POINT 1920 TO THE GIANTS IN 1991 13 2437 TO THE WASHINGTON REDSKINS IN '92 AND NOW 35 IN THEIR TRIPS TO WHAT SHOULD BE CALLED THE SELDOM SUPER BOWL HE ADDED YOU CAN TELL YOURSELF IT'S TOUGHER NOT TO BE HERE AT ALL BUT THAT DOESN'T HELP MUCH TONIGHT PROBABLY THE MOST HELPFUL WAY TO ASSESS SUNDAY'S ACTIVITIES IS TO LIST THE MAIN THINGS THE COWBOYS DID AND THE BILLS DIDN'T ON A CALIFORNIAPERFECT DAY THE NEW CHAMPIONS ACHIEVED THE RUNPASS BALANCE THAT MOST TEAMS TALK ABOUT BUT RARELY ACCOMPLISH THE PLAY NUMBERS BEING 29 AND 30 RESPECTIVELY CAUGHT THE BALL WHEN IT WAS THROWN TO THEM STRONGARMED QUARTERBACK TROY AIKMAN COMPLETED 22 PASSES WITH NO INTERCEPTIONS AND HUNG ON TO IT WHEN THEY RAN THEY LOST BUT TWO FUMBLES BOTH IN THE FOURTH QUARTER AFTER THEIR VICTORY WAS SECURE SCORED EVERY TIME THEY HAD A REASONABLE CHANCE TO DO SO SEVEN TIMES WITH TOUCHDOWNS THE BILLS ON THE OTHER HAND NOT ONLY FAILED TO DO ANY OF THE ABOVE BUT TWICE ALLOWED DALLAS DEFENDERS TO SCORE DIRECTLY ON FUMBLE RETURNS THAT NUMBER WOULD HAVE BEEN THREE IF LEON LETT A 292POUND BACKUP DEFENSIVE LINEMAN HADN'T BEGUN CELEBRATING PREMATURELY ON WHAT SHOULD HAVE BEEN A 65YARD RETURN RAMBLE FOR A TOUCHDOWN IN THE FOURTH QUARTER AND SURRENDERED THE BALL HIMSELF ANYTHING THAT COULD HAVE GONE WRONG FOR US DID SUMMARIZED JAMES LOFTON THE BILLS VETERAN PASS RECEIVER IT WAS LIKE THEY WERE PLAYING 12 MEN TO OUR 11 THE TRACE OF IRONY IN THE PROCEEDINGS WAS THAT BUFFALO STARTED THE SCORING WITH THE SORT OF OPPORTUNISTIC PLAY WITH WHICH IT SOON WOULD BE VICTIMIZED AFTER STOPPING THE COWBOYS ON DOWNS ON THEIR FIRST POSSESSION STEVE TASKER THE BILLS SMALL 5FOOT9 180 POUNDS BUT MARVELOUS SPECIALTEAMS PLAYER KNIFED THROUGH HIS BIGGERS TO BLOCK A MIKE SAXON PUNT A FOURPLAY 16YARD DRIVE QUICKLY GAVE BUFFALO A 70 LEAD BUT DALLAS TIED THINGS AFTER INTERCEPTING A JIM KELLY PASS JUST BEFORE THE QUARTER EXPIRED AND JUST 15 SECONDS LATER SCORED AGAIN WHEN KELLY WAS SACKED BY CHARLES HALEY AND JIMMY JONES CAUGHT THE RESULTING FUMBLE ON THE FLY AND STEPPED INTO THE END ZONE ROUGHLY THE SAME BANGBANG SEQUENCE ENDED QUARTER TWO DALLAS FIRST SCORING ON A 72YARD DRIVE CAPPED BY A 20YARD AIKMANTOMICHAEL IRVIN PASS AND SCORING AGAIN 18 SECONDS LATER ON THE SAME COMBINATION AFTER LETT HAD SWIPED THE BALL AWAY FROM THURMAN THOMAS AND THE UBIQUITOUS JONES RECOVERED ON THE BILLS 18YARD LINE THEM SCORING THAT WAY AFTER WE DIDN'T SCORE FROM THEIR ONEYARD LINE EARLIER IN THE QUARTER HURT BAD NOTED BUFFALO LINEBACKER SHANE CONLAN NETTING ONLY A FIELD GOAL FROM ANOTHER FORAY TO THE COWBOYS THREE DIDN'T HELP EITHER EVEN SO THE BILLS HAD LIFE INTO THE FINAL QUARTER AFTER THEY PULLED TO WITHIN TWO TOUCHDOWNS 1731 ON A 40YARD SCORING PASS TO DON BEEBE FROM FRANK REICH WHO'D COME IN AFTER KELLY REINJURED HIS KNEE THIS AFTER ALL WAS THE GANG THAT RALLIED FROM A 335 DEFICIT TO DEFEAT HOUSTON 4138 IN A FIRSTROUND PLAYOFF EPIC BUT THE COWBOYS ATTACK WHEN AHEAD AND THE NEXT SCORE ON A 45YARD AIKMANTOALVIN HARPER PASS WAS THEIRS AS WAS THE NEXT AND THE NEXT WHEN WE GET AHEAD WE WANT TO GET MORE AHEAD THAT'S THE WAY WE'RE COACHED AND THAT'S WHAT WE ENJOY SMILED THE FLEET IRVIN WHO WITH SIX CATCHES FOR 114 YARDS WAS AIKMAN'S FAVORITE TARGET ON SUNDAY CHANCES ARE THAT IRVIN ET AL WILL DO QUITE A BIT MORE SMILING IN THE SEASONS IMMEDIATELY AHEAD THE YOUNG COWBOYS HAVE BEEN SPORTS' NEATEST SUCCESS STORY OF RECENT YEARS IMPROVING FROM A 115 WONLOST RECORD IN COACH JIMMY JOHNSON'S FIRST YEAR TO 79 THE SECOND 126 THE THIRD AND 163 AND A TITLE THIS CAMPAIGN WHEREAS DALLAS AND DYNASTY USED TO BE COMPETING TV SERIES THEY COULD HENCEFORTH BE UNITED TO DESCRIBE JIMMY'S 'BOYS AND WHILE THE BATTERED BILLS MIGHT BE FORGIVEN FOR DECLINING IF OFFERED A FUTURE SB TRIP LEVY ASSURED THAT THEY WOULD NOT HISTORY IS ONGOING DECLARED THE HARVARD GRAD IF WE COME BACK AND WIN WE'LL BECOME KNOWN AS THE MOST PERSISTENT SOBS EVER 9302020127 930202 INTERNATIONAL UNILEVER TO CUT 380 POSITIONS LONDON UNILEVER PLC SAID IT WILL CUT 380 POSITIONS FROM ITS HEAD OFFICES IN ROTTERDAM THE NETHERLANDS AND LONDON AS PART OF A PLAN TO FOCUS ITS CORPORATE CENTER MORE FULLY ON THE GROUP'S WORLDWIDE STRATEGIC DIRECTION THE ANGLODUTCH FOOD AND HOUSEHOLD PRODUCTS GROUP SAID ITS TWOCITY HEADQUARTERS WILL COMPRISE 675 POSITIONS IN LONDON AND 400 IN ROTTERDAM INDICATING THAT ABOUT 120 JOBS WILL BE CUT IN LONDON HOWEVER A SPOKESMAN SAID AFTER ACCOUNTING FOR RELOCATIONS AND INTERDIVISIONAL TRANSFERS THE NUMBER OF LAYOFFS IN LONDON WILL BE WELL UNDER 100 9302020126 930202 MORE CONCERNS RAISED PAYOUTS LAST MONTH THAN DID A YEAR AGO SPECIAL TO THE WALL STREET JOURNAL NEW YORK MORE COMPANIES INCREASED THEIR DIVIDENDS IN JANUARY THAN DID SO IN THE MONTH A YEAR EARLIER STANDARD & POOR'S CORP REPORTED THE YEAROVERYEAR COMPARISON WASN'T AS DRAMATIC AS IN MONTHS PAST HOWEVER WHEN COMPARISONS WERE MADE AGAINST 1991THE WORST YEAR FOR DIVIDENDS IN RECENT HISTORY DURING THE LATEST MONTH 146 COMPANIES RAISED THEIR PAYOUTS AN INCREASE OF 17 OVER THE 124 DIVIDEND BOOSTS IN JANUARY 1992 THAT'S NOTHING LIKE THE AVERAGE 30 JUMP IN MONTHLY DIVIDEND INCREASES RECORDED LAST YEAR WE'RE NOT GOING TO SEE THE SUBSTANTIAL YEAROVERYEAR INCREASES THAT WE SAW IN 1992 SAID ARNOLD KAUFMAN EDITOR OF S&P'S OUTLOOK NEWSLETTER THERE IS STILL A GOOD DEAL OF CONCERN ABOUT THE ECONOMY AND CORPORATE PROFITS MR KAUFMAN SAID DIVIDEND INCREASES STARTED PICKING UP ON A YEARTOYEAR BASIS IN NOVEMBER 1991 AND HAVE CONTINUED SINCE THEN JANUARY IS THE 15TH STRAIGHT MONTH IN WHICH THE NUMBER OF DIVIDEND INCREASES ROSE FROM THE PREVIOUS YEAR THE DROP IN MONTHLY DIVIDEND DECREASES AND OMISSIONS WAS ALSO MUTED FROM LAST YEAR'S PACE IN JANUARY NINE COMPANIES CUT THEIR DIVIDENDS DOWN FROM 11 IN THE MONTH A YEAR EARLIER THE SAME NUMBER OF COMPANIES OMITTED DIVIDENDS IN THE LATEST MONTH AS DID A YEAR AGO11 THERE HAD BEEN SHARP DROPS IN 1992 IN THE NUMBER OF DECREASES AND OMISSIONS SO IT'S MORE DIFFICULT TO ACHIEVE FURTHER IMPROVEMENT SAID MR KAUFMAN HE WARNED THAT SINCE INTERNATIONAL BUSINESS MACHINES CORP CUT ITS DIVIDEND LAST MONTH THE DIVIDEND YIELD ON THE S&P 500STOCK INDEX HAS FALLEN TO 28 THE MARKET'S DIVIDEND YIELD HAS ONLY BEEN LOWER TWICE IN RECENT MARKET HISTORY HE SAID BEFORE THE 19731974 BEAR MARKET WHICH WAS THE WORST MARKET DOWNTURN SINCE THE GREAT DEPRESSION AND JUST BEFORE THE 1987 MARKET CRASH IN BOTH CASES THE MARKET'S DIVIDEND YIELD DROPPED TO ABOUT 265 MR KAUFMAN SAID 9302020125 930202 DRUCKER ON MANAGEMENT A TURNAROUND PRIMER BY PETER F DRUCKER AMERICAN EXPRESS GENERAL MOTORS WESTINGHOUSE IBM ALL HAVE SHAKEN UP THEIR TOP MANAGEMENT TO BRING ABOUT A TURNAROUND PREDICTABLY THEIR PLANS ALSO INCLUDE IMMEDIATE CUTS IN THE WORK FORCE FOR A SHORT TIME COSTS ARE LIKELY TO GO DOWN AND PROFITS AND SHARE PRICE TO GO UP BUT A YEAR OR SO LATER EACH COMPANY WILL BE NO BETTER OFF THAN IT WAS BEFORE AND THEN IT WILL SURELY ANNOUNCE ANOTHER LAYOFF SIMILARLY EVERY ONE OF THESE COMPANIES NOW PROMISES A TURNAROUND THROUGH REENGINEERING OPERATIONS THE REENGINEERED OPERATIONS DO INDEED IMPROVE OFTEN GREATLY YET THE COMPANY'S OVERALL PERFORMANCE IMPROVES LITTLE IF AT ALL WHY IS THIS SO AFTER DECADES OF EXPANSION MANY BIG BUSINESSES ARE INDEED OVERSTAFFED EVEN MORE SO IN JAPAN AND EUROPE THAN IN THE US AND SINCE COMPANIES TENDED TO GROW OVERHEAD AS FAST AS SALES AND OFTEN MUCH FASTER A GOOD MANY OPERATIONS ARE INDEED IN NEED OF RESTRUCTURING RESEARCH ENGINEERING CUSTOMER SERVICE ACCOUNTING MARKETING CLERICAL WORK ALL NEED TO BE REENGINEERED TO BE FREED FROM DIVERSIONS AND BUSYWORK TO BE FOCUSED ON THEIR KEY TASKS TO BE ORGANIZED AROUND THE FLOW OF THE WORK AND THE FLOW OF THE INFORMATION YET HOWEVER BADLY NEEDED NEITHER LAYOFFS NOR REENGINEERING ARE LIKELY TO RESTORE AN AILING COMPANY TO HEALTH A COMPANY BESET BY MALAISE AND STEADY DETERIORATION SUFFERS FROM SOMETHING FAR MORE SERIOUS THAN INEFFICIENCIES ITS BUSINESS THEORY HAS BECOME OBSOLETE EVERY BUSINESS IN FACT EVERY ORGANIZATION OPERATES ON SUCH A THEORY THAT IS ON A SET OF ASSUMPTIONS REGARDING THE OUTSIDE CUSTOMERS MARKETS DISTRIBUTIVE CHANNELS COMPETITION AND A SET OF ASSUMPTIONS REGARDING THE INSIDE CORE COMPETENCES TECHNOLOGY PRODUCTS PROCESSES THESE ASSUMPTIONS ARE USUALLY TAKEN FOR HOLY WRIT BY THE COMPANY AND ITS EXECUTIVES IT IS ON THEM THAT THEY BASE THEIR DECISIONS THEIR ACTIONS THEIR BEHAVIOR THE LONGER SUCH A BUSINESS THEORY WORKS THE MORE IT PERVADES THE ORGANIZATION BUT AS AN OLD PROVERB HAS IT WHOM THE GODS WANT TO DESTROY THEY SEND 40 YEARS OF SUCCESS FOR A BUSINESS THEORY IS NOT A LAW OF NATURE EVENTUALLY IT BECOMES INAPPROPRIATE TO THE REALITIES OF THE MARKET AND TECHNOLOGY THEN LONGSUCCESSFUL COMPANIES ESPECIALLY BIG ONES BEGIN TO DETERIORATE THEY LOSE THEIR BEARINGS AND THE ONLY THING THAT CAN EFFECT THE NEEDED TURNAROUND IS RETHINKING AND REFORMULATING THE COMPANY'S BUSINESS THEORY AND REPOSITIONING THE BUSINESS ON A NEW SET OF ASSUMPTIONS THE DIAGNOSIS IS FAIRLY SIMPLE WHENEVER A BUSINESS KEEPS ON GOING DOWNHILL DESPITE MASSIVE SPENDING AND HEROIC EFFORTS BY ITS PEOPLE THE MOST LIKELY CAUSE IS THE OBSOLESCENCE OF ITS BUSINESS THEORY THIS DIAGNOSIS BECOMES A VIRTUAL CERTAINTY IF A THE MALAISE FOLLOWS LONG YEARS OF UNBROKEN SUCCESS GM'S CASE OR IF B NEWCOMERS TO THE INDUSTRY FLOURISH WHILE THE LONGTIME LEADERS ARE FADING EXAMPLES ARE WALMART'S PROSPERING WHILE SEARS DECLINES DISCOUNT CLUBS PROSPERING WHILE DEPARTMENT STORES FLOUNDER REGIONAL BANKS PROSPERING WHILE CITIBANK LURCHES FROM ONE UNPLEASANT SURPRISE TO THE NEXT JAPANESE AND KOREANS STEADILY GAINING MARKET SHARE WHILE DUTCH ELECTRONICS GIANT PHILIPS SLIDES EVER DEEPER INTO THE HOLE DESPITE BRILLIANT TECHNOLOGICAL ACHIEVEMENTS TO START THE TURNAROUND THUS REQUIRES A WILLINGNESS TO RETHINK AND TO REEXAMINE THE COMPANY'S BUSINESS THEORY IT REQUIRES STOPPING SAYING WE KNOW AND INSTEAD SAYING LET'S ASK AND THERE ARE TWO SETS OF QUESTIONS THAT NEED TO BE ASKED FIRST WHO ARE THE CUSTOMERS AND WHO ARE THE NONCUSTOMERS WHAT IS VALUE TO THEM WHAT DO THEY PAY FOR SECOND WHAT DO THE SUCCESSES THE WALMARTS THE REGIONAL BANKS AND SO ON DO THAT WE DO NOT DO WHAT DO THEY NOT DO THAT WE KNOW IS ESSENTIAL WHAT DO THEY ASSUME THAT WE KNOW TO BE WRONG THESE ARE ALWAYS VERY UNPOPULAR QUESTIONS PARTICULARLY IN A BUSINESS THAT HAS HAD LONG YEARS OF SUCCESS WHICH MAY EXPLAIN WHY SO MANY OF THE SUCCESSFUL TURNAROUNDS ARE INITIATED BY NEW TOP MANAGEMENTS RECRUITED FROM OUTSIDE THE COMPANY IF NOT FROM OUTSIDE THE INDUSTRY YET UNLESS THESE QUESTIONS ARE ASKED AND ASKED SERIOUSLY THERE WILL BE NO TURNAROUND IT MAKE TAKE A GOOD LONG TIME SOMETIMES YEARS UNTIL THE NEW BUSINESS THEORY HAS BEEN FORMULATED TESTED ACCEPTED AND MADE FULLY EFFECTIVE BUT AS SOON AS THE QUESTIONS I JUST DESCRIBED ARE BEING ASKED THE TURNAROUND HAS BEGUN AND THEN IT OFTEN PROCEEDS WITH STUNNING SPEED ASKING THESE QUESTIONS IMMEDIATELY MAKES POSSIBLE EFFECTIVE ACTION REEXAMINING AN AILING COMPANY'S BUSINESS THEORY ALMOST ALWAYS SHOWS RIGHT AWAY THAT THE BEST RESOURCES ARE MISINVESTED PEOPLE KNOWLEDGE MONEY ARE COMMITTED TO THINGS THAT SHOULD BE STOPPED OR SHARPLY CURTAILED SOME OF THESE WILL BE THINGS THAT SHOULD BE DONE BUT BY OTHER PEOPLE AND BY ANOTHER COMPANY OTHER THINGS HAVE OUTLIVED THEIR VALIDITY AND PRODUCTIVITY YET OTHERS SHOULD NEVER HAVE BEEN DONE AT ALL TYPICALLY THINGS INTO WHICH THE COMPANY RUSHED IN REACTION TO MALAISE AND DECLINE GETTING RID OF THESE THINGS WILL NOT BY ITSELF GENERATE NEW GROWTH BUT UNLESS THEY ARE GOTTEN OUT OF THE WAY THE COMPANY WILL HAVE NEITHER THE VISION NOR THE ENERGY NOR THE RESOURCES TO DO THE RIGHT THINGS THE THINGS THAT WILL PRODUCE RESULTS AND GROWTH THE NEXT STEP IN A TURNAROUND IS TO FIND WHAT WORKS IN THE BUSINESS AND TO BUILD ON IT EVEN IN A VERY SICK COMPANY THERE ARE ISLANDS OF STRENGTH OF 29 STORES IN AN AILING DEPARTMENTSTORE CHAIN FOR INSTANCE 25 WERE HEMORRHAGING FOUR STORES HOWEVER WERE DOING WELL BUT NO ONE HAD PAID ATTENTION TO THEM EVERYONE DISMISSED THEIR PERFORMANCE AS AN ACCIDENT OR AN EXCEPTION EVERYBODY WAS DESPERATELY BUSY WORKING ON THE PROBLEMS BUT THE FOUR STORES PERFORMED BECAUSE THEY HAD HALFKNOWINGLY REPOSITIONED THEMSELVES ON A NEW BUSINESS THEORY THAT WAS IN LINE WITH MARKET REALITIES THESE STORES DID NOT HAVE THE ANSWERS BUT THEY HAD ANSWERS AND ANSWERS OF THIS KIND ARE EXACTLY WHAT AN AILING COMPANY NEEDS TO BECOME SUCCESSFOCUSED AGAIN INSTEAD OF PROBLEMFOCUSED THEY ENABLE THE COMPANY TO TAKE CHANCES AGAIN TO BE INNOVATIVE TO TAKE LEADERSHIP IN THE TYPICAL TURNAROUND SITUATION THE CENTRAL CHALLENGES ARE HOWEVER NEITHER THINGS TO BE ABANDONED NOR SUCCESSES TO BE EXPLOITED THEY ARE ALMOST SUCCESSES ACTIVITIES THAT AIM AT BUILDING A DIFFERENT TOMORROW BUT ARE INSTEAD MISUSED TO KEEP YESTERDAY ALIVE A LITTLE LONGER BUT TOMORROW IS THEN ALWAYS BEING SACRIFICED ON THE ALTAR OF YESTERDAY THE BEST EXAMPLE IS AN OLD ONE THE ATTEMPT OF THE FOUNDER OF IBM THOMAS WATSON SR IN THE EARLY 1950S TO KEEP THE PUNCH CARD ALIVE BY SELLING IT AS AN ACCESSORY TO THE THENNEW COMPUTER WITH STRICT INJUNCTIONS TO HIS SALESPEOPLE NEVER TO PUSH COMPUTERS IF DOING SO WOULD ENDANGER GETTING A SINGLE PUNCHCARD ORDER FORTUNATELY FOR IBM THE JUSTICE DEPARTMENT AT THAT VERY INSTANT FILED AN ANTITRUST SUIT THAT FORCED THE COMPANY OUT OF THE PUNCHCARD BUSINESS OTHERWISE IBM WOULD SURELY HAVE GONE THE WAY OF THE PUNCH CARD TYPICALLY AS WAS THE CASE WITH IBM'S PUNCH CARD YESTERDAY'S PRODUCT TECHNOLOGY OR CUSTOMER SERVICE IS THE CASH COW BUT HANGING ON TO IT INVARIABLY STUNTS THE NEW PROMISING BUSINESS OR PRODUCT THAT IS ALIVE AND GROWING THE TURNAROUND THUS ALWAYS INVOLVES A BIG GAMBLE BUT WHILE HANGING ONTO THE OLD WILL SOON DESTROY THE COMPANY GAMBLING ON THE NEW IS A RATIONAL RISK BASED ON A VALID BUSINESS THEORY AND JUSTIFIED BY THE SUCCESSES EG THE FOUR PERFORMING STORES IN THE DEPARTMENTSTORE CHAIN THAT ARE ALREADY BASING THEIR PRACTICE ON THE NEW THEORY THE YEARS AHEAD WILL BE YEARS OF RAPID CHANGES IN TECHNOLOGY IN MARKETS AND MARKET SEGMENTATION IN CONSUMER VALUES AND CONSUMER BEHAVIOR IN FINANCE IN POLITICAL AND GEOGRAPHIC REALITIES IN ECONOMIC AND TRADE POLICIES THEY WILL THEREFORE STEADILY MAKE EXISTING THEORIES OF THE BUSINESS OBSOLETE IN FACT THE MOST PROBABLE ASSUMPTION IS THAT NO CURRENTLY WORKING BUSINESS THEORY WILL BE VALID 10 YEARS HENCE AT LEAST NOT WITHOUT MAJOR MODIFICATIONS AND YET FEW EXECUTIVES ACCEPT THAT TURNING AROUND A COMPANY REQUIRES FUNDAMENTAL CHANGES IN THE ASSUMPTIONS ON WHICH THE BUSINESS IS BEING RUN IT REQUIRES A DIFFERENT BUSINESS AND IT IS NOT ONLY BUSINESSES THAT WILL HAVE TO LEARN TO TURN THEMSELVES AROUND ALMOST ANY LARGE ORGANIZATION WILL FIND ITSELF STAGNATING FRUSTRATED AILING NONE MORE THAN GOVERNMENT ALMOST EVERY LARGE ORGANIZATION WILL HAVE TO RETHINK ITS BUSINESS THEORY MR DRUCKER IS A PROFESSOR OF SOCIAL SCIENCES AT THE CLAREMONT GRADUATE SCHOOL IN CALIFORNIA 9302020124 930202 LEISURE & ARTS ON DISK THE PHILOSOPHER WHO WOULD BE COMPOSER BY STEVE COATES NEW YORK WITH FRIENDS LIKE HANS VON BULOW REVIEWING HIS WORK THE BUDDING COMPOSER FRIEDRICH NIETZSCHE DIDN'T NEED CRITICS YOU HAVE RAPED THE MUSE OF MUSIC THE GERMAN CONDUCTOR WROTE TO THE 28YEAROLD NIETZSCHE IN 1872 HE HAD JUST HEARD A NIETZSCHE FOURHAND PIANO PIECE RICHARD WAGNER'S REACTION WAS GENTLER HE ROLLED ON THE FLOOR WITH LAUGHTER NIETZSCHE SOON GAVE UP TRYING TO MAKE A NAME FOR HIMSELF IN MUSIC HE WENT ON IN HIS BETTERKNOWN CAPACITY AS THE PHILOSOPHER SOME CALL THE FATHER OF MODERNITY TO DECLARE THE DEATH OF GOD AND TO PROPOUND THEORIES OF HUMAN MORAL DEVELOPMENT THAT WERE EASILY APPROPRIATED BY THE NAZIS FOR THE MOST PART THE WORLD REMAINED UNAWARE OF HIS YOUTHFUL MUSICAL STRIVINGS REMARKABLY NIETZSCHE'S COMPOSITIONS HAVE EMERGED AFTER A CENTURY OF OBSCURITY AND CONSIDERING NIETZSCHE'S UNSAVORY IDEOLOGICAL BAGGAGE IT MIGHT SEEM EVEN MORE REMARKABLE THAT THE JOB OF WIPING THE EGG OFF THE GERMAN PHILOSOPHER'S FACE WAS LEFT TO A GROUP OF MOSTLY BLACK AND JEWISH MUSICIANS AND SCHOLARS WHO CALL THEMSELVES THE NIETZSCHE MUSIC PROJECT THANKS TO THE NEW YORKBASED NMP A SELECTION OF NIETZSCHE'S PIANO MUSIC IS NOW AVAILABLE COMMERCIALLY FOR THE FIRST TIME FROM NEWPORT CLASSIC A LABEL DEDICATED TO PUBLISHING UNUSUAL MUSIC THE GROUP'S FIRST COMPACT DISK FRIEDRICH NIETZSCHE PIANO MUSIC FEATURES PIANISTS JOHN BELL YOUNG AND CONSTANCE KEENE A SECOND CD FOCUSING ON NIETZSCHE'S LIEDER FOR TENOR AND PIANO IS DUE OUT IN JUNE REVIEWERS HAVE PRAISED THE NMP FOR ITS INTERPRETATION AND EXECUTION OF SOME BAFFLING SCORES AS FOR NIETZSCHE HIMSELF THE REACTION IS STILL LUKEWARM BUT NOBODY IS ROLLING ON THE FLOOR NOTING THAT MUCH OF NIETZSCHE'S WORK WAS WRITTEN WHILE HE WAS A SCHOOLBOY PAUL S MIKLOWITZ OPINED IN PIANO QUARTERLY THAT THE PIANO MUSIC RANKS BOTH CHRONOLOGICALLY AND QUALITATIVELY AS JUVENILIA BUT CONDUCTOR TALI MAKELL THE NMP'S ARTISTIC DIRECTOR AND ALONG WITH MR YOUNG ONE OF THE GROUP'S TWO COFOUNDERS BELIEVES SUCH COMMENTS MISS THE POINT HE WANTS TO SHAKE UP THE WIDER WORLD OF NIETZSCHEAN CRITICISM WHEN A PHILOSOPHER HAS SUCH CENTRAL IDEAS ABOUT MUSIC AS NIETZSCHE HE SAYS GLEEFULLY IT'S RIDICULOUS FOR PROFESSORS TO GO AROUND AND MAKE PRONOUNCEMENTS ABOUT HIS THEORIES IF THEY DON'T KNOW ANYTHING ABOUT MUSIC UNTIL NOW THEY'VE BEEN ABLE TO IGNORE THE WHOLE QUESTION BUT NOW THEY WILL HAVE TO ADDRESS THE ISSUE MR MAKELL IS ON TO SOMETHING SAYS JOHN P RICHARDSON ASSOCIATE PROFESSOR OF PHILOSOPHY AT NEW YORK UNIVERSITY IT'S A SIDE TO NIETZSCHE THAT IS MUCH LESS IMPORTANT THAN HIS PHILOSOPHY HE SAYS BUT EVEN A MINOR SIDE OF SUCH A GREAT MAN IS OF TREMENDOUS INTEREST PARTICULARLY IN VIEW OF HIS INFLUENTIAL THEORIES ON MUSIC MR RICHARDSON SAYS HE HIMSELF HAD LONG BEEN EAGER TO HEAR NIETZSCHE'S COMPOSITIONS BUT UNTIL NOW HAD BEEN UNABLE TO DO SO FOR NIETZSCHE MUSIC WAS THE EXPRESSION OF THE IRRATIONAL PART OF THE HUMAN PSYCHE AND HE SOUGHT TO TAP THAT SOURCE OF RAW VITALITY TO REPLENISH WHAT HE SAW AS THE DRIEDUP STREAMS OF THE WESTERN SOUL IN HIS FIRST BOOK THE BIRTH OF TRAGEDY FROM THE SPIRIT OF MUSIC HE CALLED FOR A SOCRATES WHO PRACTICES MUSIC A MAN OF INTELLECT TO UNITE THE EMOTIONAL FORCE OF MUSIC ON THE ONE HAND AND THE REPRESENTATIONAL ARTS ON THE OTHER HIS FAMOUS DISTINCTION BETWEEN WHAT HE CALLED THE DIONYSIAN AND APOLLONIAN ASPECTS OF THE HUMAN CREATIVE IMPULSE PERHAPS THERE HAS NEVER BEEN A PHILOSOPHER WHO TO SUCH A DEGREE WAS AT BOTTOM SO VERY MUCH A MUSICIAN AS I AM HE ONCE WROTE CERTAINLY NO OTHER PHILOSOPHER HAS INSPIRED SO MUCH MUSIC IN OTHERS RICHARD STRAUSS'S TONE POEM ALSO SPRACH ZARATHUSTRA WIDELY FAMILIAR AS THE THEME FROM THE MOVIE 2001 A SPACE ODYSSEY IS JUST THE BESTKNOWN OF HUNDREDS OF SYMPHONIES OPERAS MUSICAL PANTOMIMES AND OTHER COMPOSITIONS BASED ON NIETZSCHE'S WRITINGS THE MOST UPTODATE EXAMPLE OF THE PHILOSOPHER'S CONTINUING IMPACT ON THE WORLD OF MUSIC IS A CONTEMPORARY ROCK GROUP CALLED WILL TO POWER AFTER ANOTHER OF NIETZSCHE'S BOOKS THE NMP RECORDINGS OFFER PLENTY OF SURPRISES EVEN FOR LISTENERS WHO KNOW NIETZSCHE ONLY BY REPUTATION INSTEAD OF THE GRANDIOSE THUNDERING ASSOCIATED WITH NIETZSCHE'S PHILOSOPHY THE MUSIC IS PERSONAL IN SCALE INTIMATE EVEN FRAGILE IT CAN AT TIMES EVOKE FEELINGS OF PROFOUND LONELINESS WHICH IN VIEW OF THE SOLITUDE OF THE PHILOSOPHER'S LATER LIFE AND HIS PATHETIC DECLINE INTO MADNESS LENDS IT AN EERILY PRESCIENT AIR HE'S CERTAINLY NOT GREAT BUT HE'S EXTREMELY MUSICAL SAYS LUKAS FOSS CONDUCTOR LAUREATE OF THE BROOKLYN PHILHARMONIC MR FOSS'S INCORPORATION OF NIETZSCHE'S HYMNUS AN DAS LEBEN A LATE WORK FOR CHORUS AND ORCHESTRA IN A BROOKLYN PHILHARMONIC CONCERT IN 1987 MAKES HIM ONE OF THE VERY FEW CONDUCTORS TO HAVE BROUGHT ANY OF THE PHILOSOPHER'S COMPOSITIONS BEFORE THE PUBLIC THE PIECE FIT BEAUTIFULLY INTO THE PROGRAM OF WORKS BY THE GERMAN COMPOSERS WEBERN SCHUMANN AND BEETHOVEN HE SAYS HIS WORK IS SO FULL OF LOVE FOR WHAT WAS GOING ON AROUND HIM NIETZSCHE JUST NEVER MANAGED TO FIND A VOICE OF HIS OWN THE PHILOSOPHER HAD NO FORMAL MUSICAL TRAINING EXPLAINS MR MAKELL HIS FATHER A LUTHERAN MINISTER WHO PLAYED PIANO AND ARRANGED CHORAL MUSIC DIED WHEN HE WAS FIVE HIS MOTHER WAS A MUSIC TEACHER IN A SMALL WAY SAYS MR MAKELL AND HE WOULD HAVE LEARNED SOMETHING FROM HER BUT BASICALLY HE WOULD JUST SIT AT THE PIANO AND IMPROVISE THAT LACK OF TRAINING IS EVIDENT IN NIETZSCHE'S MANUSCRIPTS AND THAT IS PRECISELY WHAT MADE THE NMP'S WORK SUCH A CHALLENGE AND ITS RECORDINGS SO IMPRESSIVE NIETZSCHE'S MUSIC WAS IGNORED IN HIS OWN DAY AND WHILE PRIVATELY RECORDED VERSIONS OF INDIVIDUAL PIECES HAVE DRIBBLED OUT OVER THE YEARS IT WAS ONLY IN 1979 THAT NIETZSCHE BIOGRAPHER CURT PAUL JANZ PUBLISHED A CRITICAL EDITION OF THE MANUSCRIPTS THAT CAUGHT THE ATTENTION OF MR YOUNG AND HE AND OTHER NMP MEMBERS CONCEIVED THE IDEA FOR A PERFORMANCE EDITION ONE VOLUME IS COMPLETED SEVEN MORE ARE PLANNED AND A SERIES OF AUTHORITATIVE RECORDINGS THERE'S NO PERFORMANCE TRADITION FOR NIETZSCHE'S MUSIC MR MAKELL SAYS AND THE MANUSCRIPTS OFFER FEW INDICATIONS OF TEMPO DYNAMICS ACCENT FINGERING OF HOW IT SHOULD BE PLAYED WHAT'S LEFT CAN BE BAFFLING MR MAKELL CLEARLY RELISHES THE CHALLENGE AND THE IRONY OF A BLACK CONDUCTOR AND A BLACK PIANIST TEAMING UP TO RESURRECT THE MUSIC OF A MAN WHO HAS BEEN HELD INDIRECTLY RESPONSIBLE FOR THE RACIAL POLICIES OF THE THIRD REICH BUT HE SCOFFS AT THE IDEA THAT NIETZSCHE PAVED THE WAY FOR HITLER NIETZSCHE'S IDEAS WERE SPIRITUAL HE MAINTAINS THEY DIDN'T HAVE ANYTHING TO DO WITH NAZIS MR MAKELL POINTS OUT THAT NIETZSCHE WAS SCATHING IN HIS CRITICISM OF GERMANS WHEREVER GERMANY EXTENDS HER SWAY SHE RUINS CULTURE THE PHILOSOPHER WROTE HE WAS ALSO A GREAT ADMIRER OF THE OLD TESTAMENT AND EXPRESSLY CONDEMNED ANTISEMITISM ACCORDING TO NEW YORK UNIVERSITY'S MR RICHARDSON NIETZSCHE'S ALLEGED NAZISM WAS LARGELY A CREATION OF HIS SISTER ELISABETH WHO WAS A NOTORIOUS ANTISEMITE AND MANIPULATED HER BROTHER'S UNPUBLISHED WORK TO FURTHER HER OWN PURPOSES BESIDES HE SAYS NIETZSCHE'S WRITINGS ARE SO DIVERSE HIS CONCEPTIONS SO COMPLEX THAT HE'S EASY TO EXCERPT TO MAKE HIM TELL ALMOST ANY STORY YOU WANT HIM TO TELL BUT THAT DOESN'T EXPLAIN WHY VON BULOW HATED NIETZSCHE'S MUSIC OR WHY IT MADE WAGNER LAUGH MR MAKELL SAYS IT WAS TO A GREAT EXTENT A MATTER OF SEXUAL JEALOUSY NIETZSCHE HE REMINDS US WAS LONG INFATUATED WITH VON BULOW'S WIFE COSIMA WHO LATER LEFT HER HUSBAND TO MARRY WAGNER THE PHILOSOPHER WAS IN THE HABIT OF EXTOLLING HER AS A GREEK GODDESS AND LATER AFTER HIS SLIDE INTO INSANITY HE WAS SOMETIMES HEARD MUMBLING ABOUT MY WIFE COSIMA WAGNER NIETZSCHE FANCIED HIMSELF A KEEN JUDGE OF HUMAN MOTIVATION BUT IN EXPECTING ENCOURAGEMENT FROM VON BULOW AND WAGNER UNDER THE RATHER STEAMY CIRCUMSTANCES HE PROBABLY MISSED A BEAT MR COATES IS AN EDITOR ON THE JOURNAL'S OVERSEAS COPY DESK 9302020123 930202 WHO'S NEWS FRANKLIN ELECTRONIC'S PRESIDENT KRANGEL IS LEAVING COMPANY MOUNT HOLLY NJ FRANKLIN ELECTRONIC PUBLISHERS INC SAID ITS PRESIDENT STAN KRANGEL IS LEAVING BECAUSE THE COMPANY NO LONGER FINDS IT NECESSARY TO BUILD UP ITS DIRECT MARKETING OPERATIONS MORTON E DAVID CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE PUBLISHER OF ELECTRONIC VERSIONS OF BOOKS HAS MADE DIFFERENT MARKETING AGREEMENTS WITH MEDICAL BOOK PUBLISHERS IN THE LAST SIX MONTHS UNDER THOSE AGREEMENTS FRANKLIN'S MEDICAL BOOKS FOR THE RECENTLY INTRODUCED DIGITAL BOOK SYSTEM WHICH ACCEPTS INTERCHANGEABLE MEMORY CARDS WILL BE SOLD BY THE ORIGINAL PUBLISHERS' DIRECT MARKETING OPERATIONS IN OVERTHECOUNTER TRADING YESTERDAY AFTERNOON THE STOCK WAS QUOTED AT 18 DOWN 75 CENTS ELLIOT S PRINCE AN OPPENHEIMER & CO ANALYST SAID THAT WITH THE ORIGINAL PUBLISHERS' AGREEING TO DIRECTLY MARKET FRANKLIN'S DIGITAL VERSIONS THE COMPANY HAS LESS NEED FOR ITS OWN DIRECT MARKETING HE SAID MR KRANGEL A DIRECT MARKETING SPECIALIST HIRED JUST A YEAR AGO WAS IDEAL FOR THE JOB BUT THE JOB NO LONGER IS NECESSARY FOR FRANKLIN MR KRANGEL FORMERLY HEADED AMERICAN EXPRESS TRAVEL RELATED SERVICES CO'S MERCHANDISE SERVICES DIVISION MR DAVID SAID THE PARTING WAS AMICABLE MR KRANGEL 41 YEARS OLD COULDN'T BE REACHED FOR COMMENT FRANKLIN IS RELYING ON DIRECT MARKETING TO REACH CERTAIN CUSTOMERS INITIALLY THE MEDICAL COMMUNITY FOR ITS DIGITAL BOOK SYSTEM PRODUCTS UNDER THE AGREEMENTS REACHED BY FRANKLIN FOR EXAMPLE MEDICAL ECONOMICS DATA CORP PUBLISHER OF THE PHYSICIAN'S DESK REFERENCE WILL ALSO OFFER TO DOCTORS FRANKLIN'S ELECTRONIC FORMAT FOR THE WASHINGTON UNIVERSITY MANUAL OF MEDICAL THERAPEUTICS PUBLISHED BY LITTLE BROWN FRANKLIN SAID IT HAS LINED UP ABOUT EIGHT MEDICAL TITLES FOR THE DIGITAL BOOK SYSTEM 9302020122 930202 RAWSTEEL OUTPUT FELL 06 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 06 LAST WEEK TO 1761000 TONS FROM 1772000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 34 FROM THE 1703000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 801 OF ITS CAPABILITY LAST WEEK COMPARED WITH 806 THE PREVIOUS WEEK AND 774 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9302020121 930202 KAISER'S SALE OF COMPANY SHARES RANCHO CUCAMONGA CALIF KAISER STEEL RESOURCES INC AND TWO SELLING SHAREHOLDERS OFFERED TWO MILLION OF THE COMPANY'S COMMON SHARES AT A PRICE OF 13 EACH THE TWO SHAREHOLDERS THE NEW KAISER VOLUNTARY EMPLOYEES' BENEFICIARY ASSOCIATION AND THE PENSION BENEFIT GUARANTY CORP ARE SELLING 15 MILLION SHARES THE REMAINING 500000 ARE BEING SOLD BY THE COMPANY THE ASSOCIATION IS A TRUST CREATED DURING BANKRUPTCY PROCEEDINGS OF KAISER'S PREDECESSOR COMPANY TO PROVIDE MEDICAL BENEFITS TO ABOUT 7000 OF ITS RETIRED EMPLOYEES THE PENSION BENEFIT GUARANTY CORP A FEDERAL AGENCY THAT OVERSEES PENSION BENEFITS WAS ANOTHER CREDITOR THE TWO HOLDERS' STAKES IN THE REORGANIZED COMPANY WILL FALL RESPECTIVELY TO 33 AND 20 AFTER THE OFFERING KAISER SAID PROCEEDS FROM THE SALE WILL BE USED FOR WASTE MANAGEMENT PROJECTS AND WORKING CAPITAL THE COMPANY WHICH WILL HAVE 104 MILLION SHARES OUTSTANDING AFTER THE OFFERING ALSO HAS INTERESTS IN WATER RESOURCES AND PROPERTY REDEVELOPMENT 9302020120 930202 CLINTON CANCELS BUSH ORDERS ABOUT UNIONS BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLEASED HIS POLITICAL SUPPORTERS IN ORGANIZED LABOR BY REVOKING TWO OF HIS PREDECESSOR'S EXECUTIVE ORDERS INCLUDING A PROHIBITION AGAINST UNIONONLY LABOR AGREEMENTS FOR BILLIONS OF DOLLARS IN FEDERALLY FUNDED CONSTRUCTION PROJECTS THE SOCALLED PROJECTAGREEMENT ORDER WAS ISSUED IN THE HEAT OF THE PRESIDENTIAL CAMPAIGN BY GEORGE BUSH LAST OCT 23 AFTER THE ASSOCIATED BUILDERS AND CONTRACTORS A TRADE GROUP FOR 16000 NONUNION CONSTRUCTION COMPANIES HAD THREATENED NOT TO ENDORSE HIS BID FOR REELECTION IN AN 11THHOUR APPEAL YESTERDAY TO LABOR SECRETARY ROBERT REICH THE GROUP FAILED TO DISSUADE THE CLINTON ADMINISTRATION FROM REVOKING THE CONTROVERSIAL ORDER WHICH PROHIBITED CONTRACTORS WHO ENTER INTO PROJECT AGREEMENTS WITH UNIONS FROM BIDDING ON FEDERAL CONTRACTS AS A RESULT OF YESTERDAY'S ACTIONS FEDERAL AND STATE AGENCIES CAN REQUIRE UNIONWAGE LEVELS AMONG OTHER THINGS IN BUILDING CONTRACTS YESTERDAY MR CLINTON ALSO REVOKED A SECOND BUSH ORDER DATED APRIL 13 WHICH REQUIRED UNIONIZED CONTRACTORS ON FEDERAL PROJECTS TO POST NOTICES INFORMING WORKERS OF THEIR RIGHTS UNDER A 1988 SUPREME COURT DECISION IN THE COMMUNICATIONS WORKERS VS BECK CASE THE BECK DECISION HELD THAT WORKERS MAY REJECT FULL UNION MEMBERSHIP AND REFUSE TO PAY DUES FOR POLITICAL LOBBYING AND OTHER UNION ACTIVITIES BEYOND COLLECTIVE BARGAINING BUT MR CLINTON SAID THE BUSH ORDER WAS ANTIUNION AND ONESIDED BECAUSE IT DIDN'T REQUIRE CONTRACTORS TO NOTIFY WORKERS OF ANY OF THEIR OTHER RIGHTS UNDER THE NATIONAL LABOR RELATIONS ACT IN ANNOUNCING THE TWO ACTIONS MR CLINTON SAID HE WAS TRYING TO RESTORE A NEEDED BALANCE IN AMERICA'S WORKPLACE BY REDUCING UNNECESSARY FEDERAL GOVERNMENT INTRUSION REVOKING THE PROJECTAGREEMENT ORDER PROMISES TO BE A BOON FOR ORGANIZED LABOR PARTICULARLY THE BUILDINGTRADE UNIONS WHICH HAVE LOBBIED THE CLINTON ADMINISTRATION TO RESCIND THE ORDERS THE CONSTRUCTION BUDGET FOR THE FISCAL YEAR THAT BEGAN OCT 1 INCLUDES 50 BILLION FOR FEDERAL PROGRAMS AND FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS LAST NIGHT A SPOKESMAN FOR THE AFLCIO'S BUILDING AND CONTRUCTION TRADES DEPARTMENT SAID OUR CONSTRUCTION UNIONS WILL BE ELATED BY PRESIDENT CLINTON'S ACTION THEY HAVE LONG BEEN TRYING TO ESTABLISH THE PRINCIPLE OF PROJECT AGREEMENTS IT IS AT ISSUE IN A PENDING SUPREME COURT CASE INVOLVING A 6 BILLION CLEANUP OF BOSTON HARBOR NONUNION CONTRACTORS CONTEND THAT ALLOWING UNIONONLY AGREEMENTS ON FEDERALLY FUNDED PROJECTS OFTEN INFLATES CONSTRUCTION COSTS IN A LETTER TO MR REICH ASSOCIATED BUILDERS AND CONTRACTORS PRESIDENT JOSEPH IVEY CITED A 17 COST OVERRUN AT AN ENERGY DEPARTMENT FACILITY IN IDAHO FALLS IDAHO BUT MR CLINTON SAID THAT PROJECT AGREEMENTS REDUCE THE NUMBER OF COST OVERRUNS AND PROJECT DELAYS BY PERMITTING MORERELIABLE COST ESTIMATES BY CONTRACT BIDDERS AND ENSURING A STABLE SUPPLY OF SKILLED WORKERS IN ADDITION HE SAID SUCH AGREEMENTS PROMOTE SAFE WORKING CONDITIONS MR REICH SAID HE WELCOMED THE RESCINDING OF BOTH ORDERS THE BECK ORDER WHICH TOOK EFFECT DEC 2 TILTED THE PLAYING FIELD OF LABORMANAGEMENT RELATIONS UNFAIRLY AND PLACED AN UNWARRANTED BURDEN ON FEDERAL CONTRACTORS HE ADDED 9302020119 930202 WHO'S NEWS LASERTECHNICS INC LASERTECHNICS INC ALBUQUERQUE NM EUGENE A BOURQUE WAS NAMED PRESIDENT OF THIS MAKER OF LASER MARKING SYSTEMS AND PRINTERS HE HAD BEEN ACTING PRESIDENT AND CHIEF FINANCIAL OFFICER SINCE SEPTEMBER 1992 ADDITIONALLY BRUCE V CARP WAS NAMED A DIRECTOR OF THE COMPANY HE IS A RETIRED SALOMON BROTHERS INC VICE CHAIRMAN 9302020118 930202 TECHNOLOGY DELL COMPUTER PLANS TO RESTART STOCK OFFERING BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP CONCEDING THAT ITS FISCAL FOURTHQUARTER RESULTS WILL LIKELY FALL SLIGHTLY BELOW ANALYSTS' ESTIMATES SAID IT NONETHELESS PLANS TO QUICKLY RESUME EFFORTS TO COMPLETE A STALLED STOCK OFFERING IN BRIEFINGS WITH REPORTERS AND ANALYSTS DELL OFFICIALS ACKNOWLEDGED THAT A LENGTHY REVIEW OF ITS PROSPECTUS BY THE SECURITIES AND EXCHANGE COMMISSION CONTRIBUTED TO DELAYS IN THE OFFERING ALTHOUGH SEC STAFFERS RECENTLY SIGNED OFF ON THE OFFERING THEY REQUIRED DELL TO PROVIDE ADDITIONAL DISCLOSURES ABOUT A CONTROVERSIAL FOREIGNCURRENCY SPECULATION PROGRAM THAT IT HAS SINCE ABANDONED THE SEC WAS PARTICULARLY SENSITIVE ABOUT THE CURRENCY SECTION OF THE INVESTMENT CONSIDERATIONS PORTION OF THE OFFERING DOCUMENT GIVEN ALL THE PUBLICITY SURROUNDING THAT SAID A SPOKESWOMAN THE SEC CONCERNS WERE RAISED IN THE WAKE OF A REPORT ISSUED IN NOVEMBER BY A KIDDER PEABODY & CO ANALYST SUGGESTING THAT THE AUSTIN TEXAS PERSONALCOMPUTER MAKER MAY HAVE INFLATED EARNINGS THROUGH A SERIES OF UNUSUAL TRADES IN FOREIGN CURRENCY DELL DENIED ANY IMPROPRIETY AND THE ANALYST DAVID R KORUS SAID HIS INVESTIGATION FOUND NO DIRECT EVIDENCE OF WRONGDOING DELL OFFICIALS SAID THE EXAMINATION WAS CARRIED OUT BY THE SEC'S CORPORATE FINANCE SECTION WHICH NORMALLY REVIEWS DOCUMENTS RELATED TO SECURITIES OFFERINGS BEFORE THEY ARE PUBLISHED AND BY THE ENFORCEMENT DIVISION WHICH INVESTIGATES POSSIBLE LEGAL IMPROPRIETIES EXAMINERS DIDN'T REQUIRE ANY RESTATEMENT OF EARNINGS AS SOME INVESTORS HAD FEARED ALTHOUGH THEY REQUIRED DELL TO ADD A FOOTNOTE EXPLAINING WHAT THE EFFECTS ON EARNINGS WOULD HAVE BEEN HAD THE COMPANY CLOSED OUT ITS CURRENCY HEDGING POSITIONS AT THE END OF EACH QUARTER DURING THE LAST TWO YEARS DELL SAID THE EFFECT DURING THE FISCAL YEAR ENDED FEB 2 1992 WOULD HAVE BEEN TO REDUCE EARNINGS BY 42 CENTS A SHARE THE COMPANY ACTUALLY REPORTED NET INCOME OF 509 MILLION OR 211 A SHARE FOR THAT YEAR UNWINDING THE POSITIONS DURING THE FIRST ELEVEN MONTHS OF THE LATEST FISCAL YEAR THE MOST RECENT FIGURES AVAILABLE WOULD HAVE ADDED 45 CENTS A SHARE TO EARNINGS DELL SAID SOME ANALYSTS HAD SPECULATED THAT DELL'S DECISION TO POSTPONE ITS FOURMILLIONSHARE COMMON STOCK OFFERING FROM DECEMBER TO EARLY MARCH AFTER FISCAL FOURTH QUARTER RESULTS ARE ANNOUNCED MEANT THE COMPANY WAS PLANNING TO DISCLOSE BETTERTHANEXPECTED NEWS ANTICIPATING AN ANNOUNCEMENT ALONG THOSE LINES TODAY INVESTORS BID UP DELL STOCK 275 TO 49 A SHARE IN OVERTHECOUNTER TRADING BUT INSTEAD DELL ANNOUNCED THAT FOURTHQUARTER SALES WILL BE IN THE RANGE OF 615 MILLION OR SLIGHTLY BELOW THE MEAN ANALYST ESTIMATE OF 637 MILLION THE COMPANY ALSO SAID IT EXPECTS NET INCOME AS A PERCENTAGE OF SALES TO BE IN THE RANGE OF 5 WHILE THAT'S A HEALTHY FIGURE GIVEN THE PERSONALCOMPUTER PRICE WARS THAT WORKS OUT TO NET INCOME OF ABOUT 75 CENTS OR 76 CENTS A SHARE SLIGHTLY BELOW THE MEAN OF 77 CENTS A SHARE CALCULATED BY ZACKS INVESTMENT RESEARCH INC I'VE GOT TO BELIEVE THE STOCK IS DOWN TOMORROW SAID JAMES POYNER AN ANALYST WITH RAUSCHER PIERCE REFSNES DALLAS THE STREET THOUGHT THEY DELAYED THE OFFERING BECAUSE THEY BLEW THE LIGHTS OUT ON THE QUARTER EVEN WITH THE BLIP DELL'S PREDICTED SALES WOULD BE MORE THAN DOUBLE THE 2857 MILLION IT RECORDED A YEAR EARLIER AND EARNINGS OF 76 CENTS A SHARE WOULD BE UP 23 FROM A YEAR EARLIER WHEN IT HAD NET OF 154 MILLION OR 62 CENTS A SHARE THIS MAKES US THE FASTESTGROWING PC COMPANY IN THE WORLD IN CASE YOU WEREN'T NOTICING SAID MICHAEL DELL CHIEF EXECUTIVE OFFICER THIS WAS STILL A VERY GOOD QUARTER MR DELL SAID THE COMPANY EXPERIENCED SOME PROBLEMS PRODUCING ENOUGH NEW MACHINES TO SATISFY CUSTOMER DEMAND DURING THE FOURTH QUARTER NOTING THAT SOME COMPONENTS WERE IN SHORT SUPPLY HE SAID THE COMPANY HAS LARGELY SOLVED THOSE PROBLEMS AND IS CONFIDENT WE CAN MEET DEMAND GOING FORWARD EVEN WITH THE BLIP DELL'S PREDICTED SALES WOULD BE MORE THAN DOUBLE THE 2857 MILLION IT RECORDED A YEAR EARLIER AND EARNINGS OF 76 CENTS A SHARE WOULD BE UP 23 FROM A YEAR EARLIER WHEN IT HAD NET OF 154 MILLION OR 62 CENTS A SHARE THIS MAKES US THE FASTESTGROWING PC COMPANY IN THE WORLD IN CASE YOU WEREN'T NOTICING SAID MICHAEL DELL CHIEF EXECUTIVE OFFICER THIS WAS STILL A VERY GOOD QUARTER MR DELL SAID THE COMPANY EXPERIENCED SOME PROBLEMS PRODUCING ENOUGH NEW MACHINES TO SATISFY CUSTOMER DEMAND DURING THE FOURTH QUARTER NOTING THAT SOME COMPONENTS WERE IN SHORT SUPPLY HE SAID THE COMPANY HAS LARGELY SOLVED THOSE PROBLEMS AND IS CONFIDENT WE CAN MEET DEMAND GOING FORWARD DELL COMPUTER CORP'S ESTIMATED EARNINGS FOR THE FISCAL FOURTH QUARTER OF 76 CENTS A SHARE REPRESENT AN 85 INCREASE FROM THE YEAREARLIER FIGURE OF 41 CENTS A SHARE ADJUSTED FOR A 3FOR2 STOCK SPLIT IN APRIL AN ARTICLE TUESDAY FAILED TO GIVE AN ADJUSTED FIGURE FOR THE SPLIT AND THUS UNDERSTATED THE INCREASE 9302020117 930202 BLOCKBUSTER ENTERTAINMENT'S EARNINGS ROSE 55 IN 4TH PERIOD TO 451 MILLION FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP BENEFITING FROM GAINS IN DOMESTIC MARKET SHARE AND FROM ITS NEW MUSIC OPERATIONS REPORTED THAT FOURTHQUARTER EARNINGS JUMPED 55 ON A 58 INCREASE IN REVENUE THE VIDEORETAILING COMPANY HAD NET INCOME OF 451 MILLION OR 23 CENTS A SHARE COMPARED WITH 29 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 3982 MILLION FROM 2514 MILLION THE RESULTS WHICH WERE SLIGHTLY ABOVE EXPECTATIONS PARTLY REFLECTED AN INCREASE IN BLOCKBUSTER'S SHARE OF THE DOMESTIC VIDEORENTAL BUSINESS THE COMPANY HAD ABOUT 15 OF THE MARKET AT THE CLOSE OF 1992 SAID GREGORY K FAIRBANKS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER COMPARED WITH ABOUT 12 TO 13 AT THE CLOSE OF 1991 IN THE FOURTH QUARTER MR FAIRBANKS SAID REVENUE FROM VIDEO SALES WHICH ACCOUNTED FOR APPROXIMATELY 21 OF THE QUARTER'S REVENUE JUMPED ABOUT 31 REVENUE FROM VIDEO RENTALS HE ADDED ROSE ABOUT 36 BLOCKBUSTER NOTED THAT SALES AT COMPANYOWNED STORES IN OPERATION FOR MORE THAN A YEAR ROSE 58 IN THE FOURTH QUARTER THAT COMPARES WITH A 27 GAIN IN THE THIRD QUARTER OF 1992 A PERIOD THAT WAS AFFECTED BY VIEWERS' INTEREST IN THE SUMMER OLYMPICS MR FAIRBANKS SAID WHILE DECLINING TO PROVIDE SPECIFIC FIGURES BLOCKBUSTER SAID THE PERFORMANCE OF ITS NEW MUSIC OPERATIONS WERE IN LINE WITH EXPECTATIONS IN NOVEMBER BLOCKBUSTER ACQUIRED SOUND WAREHOUSE AND MUSIC PLUS TWO OF THE LARGEST RECORD CHAINS IN THE COUNTRY IN DECEMBER THE COMPANY ENTERED INTO A JOINT VENTURE WITH VIRGIN RETAIL GROUP BASED IN LONDON TO DEVELOP SOCALLED MEGASTORES IN EUROPE AUSTRALIA AND THE US THE JOINT VENTURE ALSO ACQUIRED VIRGIN'S INTERESTS IN 15 EXISTING MEGASTORES FOR ALL OF 1992 BLOCKBUSTER REPORTED THAT EARNINGS JUMPED 52 TO 142 MILLION OR 77 CENTS A SHARE FROM 937 MILLION OR 56 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 38 TO 12 BILLION FROM 868 MILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BLOCKBUSTER CLOSED AT 1875 UP 125 CENTS 9302020116 930202 GATES HAS ENTERED A FANTASY WORLD AFTER LEAVING LAPD CONTROVERSIAL FORMER CHIEF HAS AGREED TO HELP DESIGN VIDEO GAME ABOUT POLICE STAFF REPORTER OF THE WALL STREET JOURNAL BY MICHAEL J YBARRA POLICE OFFICERS OFTEN SAY NO ONE CAN REALLY UNDERSTAND THE PRESSURE OF MAKING SPLITSECOND LIFE AND DEATH DECISIONS WITHOUT ACTUALLY PINNING ON A BADGE BUT DARYL GATES IS GOING TO TRY TO HELP MR GATES FORMER TOP COP IN LOS ANGELES AUTHOR AND TALKRADIO HOST HAS ADDED THE ROLE OF VIDEO GAME DESIGNER TO HIS RESUME SIERRA ONLINE SAID YESTERDAY THAT GATES IS DESIGNING THE FOURTH INSTALLMENT OF THE COMPANY'S POLICE QUEST VIDEO GAME SERIES MR GATES FORMER CHIEF OF THE LOS ANGELES POLICE DEPARTMENT AND A LIGHTNING ROD FOR CRITICISM WILL GIVE PERSONAL COMPUTER USERS THE OPPORTUNITY TO BECOME AN LAPD DETECTIVE HOT ON THE TRAIL OF A SERIAL KILLER THE INTERACTIVE ROLEPLAYING GAME ALSO WILL FEATURE PRESSURE FROM THE MEDIA AND PUBLIC TO SOLVE THE SLAYINGS I WANT TO GIVE COMPUTER USERS THE OPPORTUNITY TO SEE WHAT IT'S LIKE TO BE A COP IN LA GATES SAYS I WANT TO SHOW THE DAYTODAY PRESSURES OFFICERS FACE AND PROVIDE AN ACCURATE PICTURE OF THE DANGERS AND DIFFICULTIES THEY ENCOUNTER IN TRYING TO SOLVE A CRIME MR GATES WASN'T FIRST CHOICE FOR THE JOB SAYS KEN WILLIAMS PRESIDENT AND CEO OF THE OAKHURST CALIF COMPANY WHEN JIM WALLS THE DESIGNER OF THE FIRST THREE INSTALLMENTS AND A FORMER COP DEFECTED TO A RIVAL MR WILLIAMS SAY HE WANTED AUTHOR JOSEPH WAMBAUGH BUT THEN MR WILLIAMS'S WIFE SUGGESTED MR GATES WE HAD QUITE AN UPROAR AMONG OUR STAFF HE SAYS ADDING THAT THE GENERAL FEELING WAS THAT MR GATES WAS NOT POLITICALLY CORRECT BUT MR WILLIAMS SAYS HE DECIDED CONTROVERSY SELLS I'D RATHER HAVE HIM DOING THAT THAN ON THE STREETS OR IN THE POLICE DEPARTMENT SAYS RAMONA RIPSTON EXECUTIVE DIRECTOR OF THE SOUTHERN CALIFORNIA CHAPTER OF THE AMERICAN CIVIL LIBERTIES UNION I CAN'T BELIEVE THIS IS SERIOUS SAYS FRANK BERRY EXECUTIVE ASSISTANT AT THE LOS ANGELES BRANCH OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IF IT'S A TOY IT'S NOTHING TO PLAY WITH IT CERTAINLY MAKES YOU WONDER WHY A COMPANY WOULD CHOOSE DARYL GATES OF ALL PEOPLE THERE MUST BE SOMEONE MORE APPROPRIATE THE GAME IS EXPECTED TO BE IN STORES IN SEPTEMBER AND WILL COST 70 THE POLICE SERIES IS ONE OF THE COMPANY'S BEST SELLERS MR WILLIAMS SAYS APPEALING LARGELY TO ADULT MALES WHO ONCE DREAMED OF BEING COPS BUT THE COMPANY WARNS THAT WOULDBE ROGUE COPS MIGHT BE DISAPPOINTED THE PREVIOUS INSTALLMENT OF POLICE QUEST BEGAN WITH AN OFFICER STOPPING A SPEEDING MOTORIST AND HAVING TO WRITE A TICKET IF THE PLAYER VIOLATED ANY OF THE RULES SPELLED OUT IN AN ACCOMPANYING BOOK HE GOT IN TROUBLE THE PLAYER CONTROLS THE MOVES AND ACTION OF THE VIDEO COP WITH THE ABILITY TO DRAW HIS WEAPON AND SHOOT BUT JUST TO BE SAFE THERE ARE NO COMMANDS TO KICK OR BEAT THIS IS NOT AN ACTION GAME MR WILLIAMS SAYS 9302020115 930202 CORPORATE FOCUS PANHANDLE EASTERN PROSPERS BY HAULING OTHERS' FUEL PIPELINE FIRM ALSO TIES HOPES TO IMPORTING GAS FROM CANADA ALGERIA BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON DENNIS HENDRIX IS SPEAKING WHAT AMOUNTS TO HERESY IN THE MERCURIAL DOMESTIC NATURALGAS INDUSTRY I THINK IN THE LONG RUN WE'LL HAVE TO SEE MORE GAS IMPORTED INTO THIS COUNTRY IF WE WANT TO EXPAND OUR MARKET AMONG CUSTOMERS WHO ARE CONFIDENT THERE'S PLENTY OF IT HE SAYS OF COURSE IT'S NO SKIN OFF MR HENDRIX'S BALANCE SHEET WHERE THE NATION'S NATURAL GAS COMES FROM EVEN THOUGH HE IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PANHANDLE EASTERN CORP WHOSE 27000MILE LINE IS THE COUNTRY'S SECONDLONGEST AFTER ENRON CORP'S THAT'S BECAUSE MR HENDRIX HAS QUIETLY RESCUED PANHANDLE FROM THE VOLATILE MERCHANT END OF THE GAS BUSINESS AND CONVERTED IT INTO A PROFITABLE HAULER OF OTHER PEOPLE'S FUEL ALMOST ANYBODY'S GAS FOR EXAMPLE PANHANDLE IS A 22 PARTNER IN A PIPELINE IMPORTING GAS FROM CANADA THAT NATION SO FEARED BY US GAS PRODUCERS FOR ITS RICH FIELDS AND WILLINGNESS TO OPERATE ON LOW PROFIT MARGINS WITH PANHANDLE'S HELP CANADA'S SHARE OF THE 21 TRILLIONCUBICFEET ANNUAL US GAS MARKET HAS ZOOMED TO 10 TODAY FROM ALMOST NOTHING A DECADE AGO WHAT'S MORE MR HENDRIX IS PINNING PART OF THE COMPANY'S FUTURE ON AN IDEA MANY GAS INDUSTRY OFFICIALS SAY IS WRONGHEADED IMPORTING LIQUEFIED NATURAL GAS IN PANHANDLE'S CASE THE SUPPLIER IS ALGERIA AND THE COMPANY CONVERTS THE LIQUID INTO GAS AT A COST OF ABOUT 50 CENTS PER THOUSAND CUBIC FEET SUCH CONVERSION COSTS WERE PROHIBITIVE JUST A YEAR AGO WHEN US GAS PRICES FELL BELOW 1 PER THOUSAND CUBIC FEET BUT NOW WITH DOMESTIC GAS PRICES NUDGING 170 IN THE US THE CHEAP ALGERIAN LIQUID FUEL IS IN DEMAND EVEN AFTER ADDING ON THE CONVERSION COSTS TO BE SURE MR HENDRIX IS BENEFITING FROM GOOD TIMING HIS PREDECESSORS AT PANHANDLE EASTERN FOUND ALGERIAN GAS A MONEYLOSER IN THE 1970S BACK THEN MIDWESTERN UTILITIES SWITCHED TO CHEAPER DOMESTIC SUPPLIERS AFTER PANHANDLE EASTERN HAD SUNK 1 BILLION AN AMOUNT EQUAL TO 40 OF THE COMPANY'S ENTIRE CURRENT DEBT LOAD INTO PLANTS SHIPS AND CONTRACTS TO HANDLE ALGERIAN GAS BUT WHILE MR HENDRIX'S TIMING AND LUCK ARE GOOD HIS ACUMEN AS AN EXPANSIONIST IN A STALLED GAS MARKET IS EVEN BETTER HE'S POURING CAPITAL SPENDING INTO THE NORTHEAST US MARKET LONG A DOMAIN OF ARCHRIVAL FUELOIL DISTRIBUTORS IN 1992 HE RAISED PANHANDLE'S SPENDING ON PIPELINE EXPANSION 10 TO 275 MILLION AND THIS YEAR HE SAYS HE PLANS TO INCREASE THE TOTAL BY AS MUCH AS 24 ALL THIS AT A TIME WHEN NATIONAL GAS DEMAND IS UP ONLY 3 A YEAR I'M BULLISH SAYS MR HENDRIX THUS HE'S ZEROING IN ON THE NORTHEAST MARKET WHERE FUEL OIL HAS A 60 SHARE OF THE HOMEHEATING BUSINESS THAT'S LIKELY TO CHANGE HE SAYS HE REASONS THAT BY 1995 RECENTLY ENACTED FEDERAL CLEANAIR RULES MAY FORCE CONVERSION OF SOME OIL FIRED AS WELL AS COAL FUELED ELECTRIC PLANTS MR HENDRIX HAS TO SOUND BULLISH ON PANHANDLE'S STOCK BECAUSE HE HASN'T ANY CHOICE HE'S PAID ENTIRELY IN THE COMPANY'S COMMON SHARES 25000 PER QUARTER NO SEVERANCE NO GOLDEN PARACHUTE NO RETIREMENT PLAN SAYS AN ASSISTANT HE JUST GETS THE STOCK AND MEDICAL BENEFITS THE 53YEAROLD MR HENDRIX HAS MADE A BELIEVER OUT OF WALL STREET EVER SINCE HE WAS NAMED PANHANDLE'S TOP EXECUTIVE IN NOVEMBER 1990 A YEAR AFTER HE HAD LEFT THE NO 1 JOB AT TEXAS EASTERN TRANSMISSION CORP WHICH PANHANDLE HAD JUST ACQUIRED SINCE THEN THE COMPANY HAS MOVED WELL OUT OF THE RED AND ITS STOCK HAS NEARLY DOUBLED IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY IT WAS AT 19 UP 25 CENTS THINGS DIDN'T LOOK SO BRIGHT FOR PANHANDLE EASTERN DURING MR HENDRIX'S TEMPORARY ABSENCE FOUR YEARS AGO HE LEFT ABRUPTLY AFTER FAILING TO WIN THE CHAIRMAN'S TITLE WHEN COMPANY DIRECTORS BROUGHT IN PHILIP BURGUIERES A FORMER HOUSTON MANUFACTURING EXECUTIVE BUT MR BURGUIERES' BRIEF TENURE WAS MARKED BY RISING DEBT FALLING GAS PRICES AND LOOMING ENVIRONMENTAL REGULATORY LIABILITIES PANHANDLE EASTERN'S STOCK TUMBLED TO 10 AND MR BURGUIERES SLASHED THE QUARTERLY DIVIDEND 60 TO 20 CENTS A SHARE THE COMPANY'S STATEMENT ON HIS RESIGNATION CITED A PERSONAL HEALTH PROBLEM BUT DIDN'T ELABORATE MR HENDRIX HIT THE GROUND RUNNING TO CLEAN UP VARIOUS CONTRACTUAL AND REGULATORY DISPUTES FROM PANHANDLE'S BOOKS HE SOON SETTLED 500 MILLION IN DISPUTED CHARGES WITH SEVERAL UTILITIES BY AGREEING TO PAY HALF AND WROTE OFF 200 MILLION IN UNPROFITABLE ASSETS FURTHER HE FREED THE COMPANY FROM CERTAIN CONTRACTS TO BUY GAS AT PRICES FAR ABOVE THE LEVELS TO WHICH THE MARKET HAD FALLEN TO DO SO HE PERSUADED CUSTOMERS TO PAY FOR THE BUYOUT IN RETURN FOR LOWER PRICES THOSE LOWER RATES IMPROVED PANHANDLE'S VOLUME WITH EXISTING CUSTOMERS AND RAPIDLY ATTRACTED MORE THE NEW BUSINESS HAS LED TO INCREASED CASH FLOW WHICH MOODY'S INVESTORS SERVICE INC NOTED IN ANNOUNCING RECENTLY THAT IT'S REVIEWING 25 BILLION OF PANHANDLE DEBT FOR POSSIBLE UPGRADE THUS PANHANDLE TURNED AROUND FROM A 1990 LOSS OF 2182 MILLION OR 246 A SHARE TO NET INCOME OF 851 MILLION OR 86 CENTS A SHARE IN 1991 PANHANDLE'S 1992 PROFIT MORE THAN DOUBLED TO 1886 MILLION OR 174 A SHARE INCLUDING A GAIN OF 577 MILLION OR 53 CENTS A SHARE FROM THE SETTLEMENT OF CERTAIN LONGSTANDING REGULATORY ISSUES REGARDING ITS LIQUEFIED NATURALGAS PROJECT MR HENDRIX SAYS HE HAS REDUCED THE COMPANY'S RISK IN THE CURRENTLY VOLATILE CLIMATE FOR NATURALGAS PRICES BY LARGELY EXTRICATING IT FROM THE MERCHANT BUSINESS LAST YEAR 80 OF THE GAS MOVING THROUGH PANHANDLE'S PIPELINES WAS OWNED BY EITHER PRODUCERS OR SUCH CUSTOMERS AS UTILITIES FACTORIES OR OTHER COMMERCIAL USERS PANHANDLE ACTED AS A MERCHANT BY TEMPORARILY OWNING ONLY 20 OF THE GAS IN ITS SYSTEM LESS THAN A DECADE AGO PANHANDLE ACTED AS THE MERCHANT FOR NEARLY ALL THE GAS IT MOVED MICHAEL BARBIS A GAS INDUSTRY ANALYST AT WERTHEIM SCHRODER SAYS THE NEW PANHANDLE IS TAKING PLACE NOW THAT ITS PAST HAS BEEN CLEANED UP BUT HE WARNS THAT PANHANDLE IS BEHIND SOME OF ITS PEERS IN DEVELOPING A STRATEGY TO MARKET CONTRACTS TO VARIOUS NEW CUSTOMERS UNDER DEREGULATION MR HENDRIX REPLIES WE'RE HOLDING DISCUSSIONS WITH CUSTOMERS ON A NUMBER OF NEW PRODUCTS MANY OF WHICH MAY BE VARIOUS TYPES OF LONGTERM CONTRACTS WITH PRICES PEGGED TO THE CHANGING INTEREST RATES OF VARIOUS FEDERAL DEBT INSTRUMENTS MR BARBIS SAYS PANHANDLE HAS THE UNIQUE ADVANTAGE OF HAVING THE LARGEST INTERCONNECTED PIPELINE SYSTEM IN THE US INCLUDING LARGE GASGATHERING SYSTEMS NEAR WELLHEADS THAT BRING GAS INTO ITS INTERSTATE LINES SOME INTERSTATE PIPELINES MUST DEPEND ON SMALLER COMPANIES TO PROVIDE LOCAL GASGATHERING SERVICES COASTAL CORP ENRON CORP AND TRANSCO ENERGY CORP 9302020114 930202 POLITICS & POLICY AS SPEECH NEARS CLINTON ADVISERS ARE UNDECIDED ABOUT DEFICITCUTTING TAX BOOST ON MIDDLE CLASS BY DAVID WESSEL AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH PRESIDENT CLINTON'S BIG ECONOMIC SPEECH ONLY TWO WEEKS AWAY HIS ADVISERS STILL ARE DIVIDED ON A FUNDAMENTAL ISSUE WHETHER TO RAISE TAXES ON THE MIDDLE CLASS TO SHRINK THE DEFICIT BUDGET DIRECTOR LEON PANETTA AND SEVERAL OF MR CLINTON'S OTHER ECONOMIC ADVISERS SAY HE MUST STICK TO HIS RECENT PROMISE OF CUTTING 145 BILION FROM THE FISCAL 1997 DEFICIT IF HIS ECONOMIC PLAN IS TO HAVE ANY CREDIBILITY BUT HITTING THAT GOAL WOULD MEAN IMPOSING A NEW ENERGY TAX OR OTHERWISE RAISING TAXES ON MOST AMERICANS SOME OF THE PRESIDENT'S POLITICAL ADVISERS FEARING THAT MR CLINTON'S POPULIST CAMPAIGN RHETORIC WILL BE BROUGHT UP AGAINST HIM IN THE FUTURE ARE ARGUING THAT THE PRESIDENT SHOULD AVOID SUCH TAX INCREASES EVEN IF THAT MEANS HIS PLAN WOULD CUT THE DEFICIT BY ONLY ABOUT 125 BILLION IT'S MATHEMATICALLY IMPOSSIBLE TO REDEEM ALL THE CAMPAIGN PROMISES SAYS ONE CLINTON ADVISER THE QUESTION IS WHICH ONES CAN AND SHOULD BE REDEEMED AND WHICH ONES CAN BE SWALLOWED CITING A WORSENING OUTLOOK FOR THE DEFICIT MR CLINTON ALREADY HAS ABANDONED HIS PROMISED TAX CUT FOR THE MIDDLE CLASS AND HIS VOW TO HALVE THE DEFICIT BY THE END OF HIS FIRST TERM BUT HE HAS YET TO MAKE THE RISKIER DECISION THAT HE MUST VIOLATE HIS CAREFULLY PHRASED PROMISE TO SHIELD THE MIDDLE CLASS FROM TAX INCREASES THE PRESIDENT HAS NOT MADE ANY DECISIONS HE IS LOOKING AT EVERY OPTION AT THIS POINT WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID YESTERDAY WITH THE APPARENT BACKING OF TREASURY SECRETARY LLOYD BENTSEN AND HIS DEPUTY ROGER ALTMAN A LONGTIME CLINTON PAL MR PANETTA AND DEPUTY BUDGET DIRECTOR ALICE RIVLIN ARE URGING THE PRESIDENT TO SWALLOW HARD AND PROPOSE AN ENERGY TAX INCREASE POLITICAL ADVISERS SUCH AS MR STEPHANOPOULOS AND CONSULTANT PAUL BEGALA ARE RAISING RED FLAGS NEITHER MAN WOULD DISCUSS THEIR VIEWS ON THE MATTER MR CLINTON DOESN'T HAVE MUCH TIME LEFT TO DECIDE HIS ECONOMIC ADVISERS WERE HOPING TO SCHEDULE 15 TO 20 HOURS OF MEETINGS WITH HIM THIS WEEK TO RESOLVE SOME MAJOR ISSUES MR PANETTA HAS ALERTED AGENCIES THAT THE WHITE HOUSE WILL DISTRIBUTE ITS SPENDING PROPOSALS THIS WEEK AND PLANS TO RESOLVE ANY DISPUTES BY FEB 11 SO THAT A SUMMARY OF THE PRESIDENT'S PLAN CAN BE PRINTED IN TIME FOR HIS FEB 17 ADDRESS TO CONGRESS FINAL DETAILS AREN'T EXPECTED UNTIL MARCH 23 BUT AFTER MEETING WITH SENATE LEADERS LAST NIGHT MR PANETTA SAID CONGRESS WILL HAVE ENOUGH INFORMATION AFTER THE PRESIDENT'S ADDRESS TO BEGIN DRAFTING A BUDGET RESOLUTION OUR GOAL IS TO HAVE ENOUGH TO START A RESOLUTION SAID THE BUDGET DIRECTOR THOUGH DELAYS ARE INEVITABLE EARLY BUDGET ACTION WOULD DOVETAIL WITH THE ADMINISTRATION'S HOPE OF PASSING A DEBTCEILING INCREASE IN WORKING OUT A BUDGET THE ECONOMIC ISSUE IS SIMPLE IF MR CLINTON DECIDES TO CUT THE DEFICIT BY AT LEAST 145 BILLION FOR FISCAL 1997 WHICH BEGINS OCT 1 1996 HE ALMOST CERTAINLY WILL HAVE TO TURN TO A BROADBASED ENERGY TAX OR AN INCREASE IN THE GASOLINE TAX OR SOME OTHER TAX THAT HITS MOST AMERICANS BECAUSE POORER HOUSEHOLDS SPEND A GREATER SHARE OF THEIR INCOME ON ENERGY THAN RICHER HOUSEHOLDS ANY ENERGY TAX INCREASE IS SURE TO BE ATTACKED AS REGRESSIVE THE ADMINISTRATION CAN PROTECT THE VERY POOREST FAMILIES THROUGH TAX CREDITS OR INCREASES IN FOOD STAMPS BUT IT CAN'T SHIELD THE VAST MIDDLE CLASS THE TYPICAL HOUSEHOLD IN THE MIDDLE OF US INCOME DISTRIBUTION SPENDS ABOUT 87 OF ITS INCOME ON ALL FORMS OF ENERGY WHILE A TYPICAL HOUSEHOLD AT THE TOP SPENDS ONLY 41 OF ITS INCOME ON ENERGY IT'S TERRIBLY UNFAIR TO PICK OUT JUST ONE OF THE OPTIONS AND SAY THAT IT'S REGRESSIVE OR PROGRESSIVE TREASURY SECRETARY BENTSEN SAID YESTERDAY THE OVERALL DEFICITREDUCTION PLAN HE SAID WILL HIT THE WELLOFF HARDER THAN THE MIDDLE CLASS NEVERTHELESS MR CLINTON'S POLITICAL ADVISERS ARE HAUNTED BY THE EXPERIENCE OF JAMES FLORIO THE NEW JERSEY GOVERNOR WHO RAISED TAXES EARLY IN HIS TERM AND HAS BEEN FIGHTING FOR HIS POLITICAL LIFE EVER SINCE BUT OTHER CLINTON AIDES URGE THE PRESIDENT TO FOLLOW THE MODEL OF ROSS PEROT WHO GAINED POPULARITY BY PROPOSING TOUGH MEDICINE FOR THE DEFICIT MR BEGALA A DEMOCRATIC NATIONAL COMMITTEE CONSULTANT WHO IS CLOSE TO THE WHITE HOUSE IS PARTICULARLY SENSITIVE TO THE FLORIO PROBLEM HIS FIRM IS ADVISING MR FLORIO IN HIS REELECTION BID MR FLORIO HIMSELF WON'T SAY WHAT ADVICE HE WOULD GIVE THE PRESIDENT DOING NOTHING IS THE POLITICAL PROBLEM THE NEW JERSEY DEMOCRAT SAID YESTERDAY AFTER HE AND OTHER GOVERNORS MET WITH MR CLINTON DOING SOMETHING THAT MAKES SENSE IS AN OPPORTUNITY WHAT MAKES SENSE IS AN AMBITIOUS ATTACK ON THE DEFICIT INCLUDING TAX INCREASES SAYS JOHN WHITE THE FORMER CARTER ADMINISTRATION BUDGET OFFICIAL WHO DRAFTED MR PEROT'S DEFICIT PLAN THIS IS ONE WHERE I THINK PEOPLE ARE OUT AHEAD OF THE POLITICIANS SAYS MR WHITE AS LONG AS HE PUTS TOGETHER A PLAN THAT IS PERCEIVED TO BE FAIR HE CAN DO IT AND HE CAN FLY COVER FOR THE CONGRESS POLITICAL ANALYST KEVIN PHILLIPS WHO HAS MADE A CAREER OUT OF ANALYZING MIDDLECLASS ATTITUDES SAYS MR CLINTON NEEDN'T FEAR THE MIDDLE CLASS IF HE CAN CONVINCE THEM THAT THE RICH ARE PAYING MORE THE ENERGY TAX MIGHT FLY IF THEY'VE GOT IT WRAPPED IN THE 36 TOP MARGINAL INCOME TAX RATE THE MILLIONAIRE'S SURTAX AND ENOUGH STUFF SO THAT THE AVERAGE PERSON THINKS THE LEVELS ABOVE HIM OR HER GET HIT THE CURRENT TOP MARGINAL TAX RATE IS 31 BUT MR CLINTON'S POLITICAL ADVISERS ARE WORRIED THAT IF THE PRESIDENT SUGGESTS ANY SORT OF BROAD TAX INCREASE VOTERS WILL CONCLUDE THAT HE'S SIMPLY INCAPABLE OF KEEPING HIS WORD AFTER ALL CANDIDATE CLINTON WAS EMPHATIC PEOPLE WHO WOULD BE ELIGIBLE FOR SOME SORT OF TAX RELIEF AND WOULD BE IMMUNIZED FROM PAYING ANY MORE WOULD BE FAMILIES WITH FAMILY INCOME OF 80000 A YEAR OR LESS HE SAID IN A TELEVISED TOWN MEETING OCT 29 IN SECAUCUS NJ MR CLINTON DID LEAVE HIMSELF AN ESCAPE THAT HE MAY YET TAKE HE REPEATEDLY SAID HE WOULDN'T RAISE MIDDLECLASS TAXES TO PAY FOR HIS SPENDING PROPOSALS HE DIDN'T RULE OUT SUCH A BOOST UNDER ALL CIRCUMSTANCES I AM NOT GOING TO TELL YOU READ MY LIPS' ON ANYTHING BECAUSE I CANNOT FORESEE WHAT EMERGENCIES MIGHT DEVELOP HE SAID IN THE THIRD PRESIDENTIAL DEBATE BUT IF MR CLINTON DOES RAISE TAXES ON THE MIDDLE CLASS WHAT TELEVISION PRODUCER COULD KEEP FROM AIRING GEORGE BUSH'S REPLY FROM THAT SAME DEBATE WHEN YOU HEAR TAX THE RICH' MR AND MRS AMERICA WATCH YOUR WALLET BECAUSE HE'S COMING RIGHT AFTER YOU NEW DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM WHO HELPED KEEP POPULIST THEMES ALIVE AS MR CLINTON'S CAMPAIGN MANAGER KNOWS HOW EASY IT IS TO MAKE COMMERCIALS ATTACKING TAX INCREASES THAT ARE SEEN AS UNFAIR IN 1990 HE PRODUCED COMMERCIALS FOR A COALITION OF COMPANIES AND UNIONS THAT WERE FIGHTING INCREASED LIQUOR AND CIGARETTE TAXES WHICH ARE ALSO BEING CONSIDERED BY THE CLINTON ADMINISTRATION ONE SHOWED TUXEDOCLAD MEN GETTING OUT OF A VERY EXPENSIVE AUTOMOBILE THIS IS A ROLLSROYCE CORNICHE CONVERTIBLE THE ANNOUNCER SAID IF YOU'RE A MULTIMILLIONAIRE YOU CAN BUY ONE FOR 200000 THEN THE CAMERA TURNS TO A BOTTLE OF BEER SIXTYFIVE CENTS THE ANNOUNCER SAID REGULAR PEOPLE ENJOY THEM IN THEIR BACKYARDS ON HOT SUMMER DAYS GUESS WHICH ONE THE GOVERNMENT WANTS TO TAX NOW ALTHOUGH THEY ACKNOWLEDGE THE OBVIOUS POLITICAL RISKS OF RAISING TAXES ON MR AND MRS AMERICA MR CLINTON'S ECONOMIC ADVISERS POINT OUT THAT THERE ARE RISKS TO DOING TOO LITTLE ABOUT THE DEFICIT FOR ONE THE FINANCIAL MARKETS ARE CLEARLY ANTICIPATING A SIGNIFICANT ATTACK ON THE DEFICIT AND HAVE PUSHED DOWN LONGTERM INTEREST RATES EVEN AS THE ECONOMY HAS STRENGTHENED MORTGAGE RATES ARE NEAR A 20YEAR LOW DISAPPOINT THE MARKET WALL STREET ANALYSTS SAY AND INTEREST RATES WILL SHOOT BACK UP THE MARKET IS CONVINCING ITSELF THAT THERE WILL BE A CREDIBLE PACKAGE SAYS DARWIN BECK WHO TRACKS THE BOND MARKET FOR FIRST BOSTON CORP MR CLINTON IS ALSO BEING COUNSELED THAT IF HE CURTAILS HIS DEFICIT GOALS ANY MORE THAN HE ALREADY HAS HE MAY SPEND HIS ENTIRE PRESIDENCY TIED DOWN BY THE DEFICIT AND UNABLE TO EXECUTE HIS PLANS FOR NEW SPENDING MR WHITE THE FORMER PEROT ADVISER WHO LATER ASSISTED MR CLINTON SAYS THAT UNLESS THE PRESIDENT COMES UP WITH A SIGNIFICANT DEFICIT REDUCTION PLAN HE JEOPARDIZES HIS ABILITY TO BE AN EFFECTIVE PRESIDENT 9302020113 930202 BUSINESS BRIEF RH MACY SHOWS 5WEEK PROFIT FIRST SINCE BANKRUPTCY BY JEFFREY A TRACHTENBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RH MACY & CO EARNED 1477 MILLION FOR THE FIVE WEEKS ENDED JAN 2 THE FIRST TIME THE RETAILER HAS SHOWN A PROFIT SINCE FILING FOR CHAPTER 11 BANKRUPTCY PROTECTION IN JANUARY 1992 MACY'S SAID ITS DECEMBER REVENUE WAS 12 BILLION OR 38 MORE THAN A YEAR EARLIER ALTHOUGH MACY'S DIDN'T PERFORM AS WELL AS SOME OF ITS COMPETITORS DURING THE CHRISTMAS PERIOD PRIMARILY BECAUSE OF PROBLEMS ON THE WEST COAST THE CHAIN EXCEEDED EXPECTATIONS AND SHOWED IMPROVEMENT OVER THE PRIOR YEAR OPERATING PROFIT FOR THE FIVE WEEKS AMOUNTED TO 177 MILLION MACY'S BEGAN REPORTING MONTHLY RESULTS IN US BANKRUPTCY COURT IN NEW YORK AFTER ITS BANKRUPTCY FILING SOME ON WALL STREET WERE UPBEAT ABOUT THE COMPANY'S CHRISTMAS RESULTS WHAT THIS SHOWS IS THAT MACY'S IS BEGINNING TO GET ITS ACT TOGETHER IN TERMS OF ITS OPERATING PERFORMANCE SAID JACK HERSCH RESEARCH DIRECTOR WITH MJ WHITMAN & CO I NOW EXPECT TO SEE MACY'S BEST SECOND QUARTER SINCE THE LATE 1980S MR HERSCH HAS BEEN BULLISH ABOUT MACY'S SINCE THE FALL WHEN HE RECOMMENDED PURCHASE OF MACY'S SENIOR BONDS HOWEVER ANOTHER ANALYST DAVID FORD AT THE DELAWARE BAY CO INC A BROKERAGE FIRM SPECIALIZING IN DISTRESSED SECURITIES WAS MORE CIRCUMSPECT MR FORD ESTIMATING THAT MACY'S GENERATED ABOUT 205 MILLION IN EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION DURING DECEMBER WARNED THAT THE COMPANY CONTINUES TO FACE SIGNIFICANT CHALLENGES THE MACY'S COST STRUCTURE IS HIGHER THAN THAT OF MANY COMPETITORS AND MANAGEMENT IS STILL TRYING TO DECIDE WHAT MERCHANDISE TO STOCK IN THE STORES SAID MR FORD THE UPSHOT IS THAT THIS ISN'T THE TIME TO GET OVERLY EXCITED ABOUT THE COMPANY'S DECEMBER RESULTS ALTHOUGH HE ADDED THAT THE COMPANY IS CLEARLY ON THE RIGHT TRACK MR FORD SAID HE DOESN'T EXPECT MACY'S TO EMERGE FROM CHAPTER 11 UNTIL THE FIRST OR SECOND QUARTER OF 1995 MACY'S SAID MR FORD'S CASH FLOW FIGURES FOR DECEMBER WERE CORRECT THE CHRISTMAS RESULTS ALL BUT ASSURE THAT THE RETAILER WILL SATISFY COVENANTS GOVERNING ITS WORKING CAPITAL FACILITY FOR THE SECOND QUARTER ENDED JAN 30 SAID A SPOKESMAN FOR THE COMPANY IN ORDER TO BE IN COMPLIANCE MACY'S MUST PRODUCE 130 MILLION IN EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION FOR THAT PERIOD THE MACY'S SPOKESMAN ALSO NOTED THAT THE RETAILER IS GENERATING MORE CASH THAN EXPECTED AND WON'T BORROW AGAIN FROM ITS DEBTORINPOSSESSION FACILITY UNTIL MARCH EARLIER MACY'S SAID IT EXPECTED TO RESUME BORROWING FROM THAT FACILITY IN FEBRUARY IN ORDER TO FUND PURCHASES OF SPRING MERCHANDISE 9302020112 930202 REVIEW & OUTLOOK EDITORIAL SELFSELECTION HOUSE REPUBLICANS TALK A LOT ABOUT CONGRESSIONAL REFORM AND THEY MAKE MANY LEGITIMATE POINTS ABOUT AN INSTITUTION THAT HAS BEEN RULED BY DEMOCRATS FOR 38 STRAIGHT YEARS BUT AN INCIDENT LAST WEEK SHOWED HOW UNPREPARED REPUBLICANS ARE TO CHANGE THE HOUSE RULES THAT MAKE CONGRESS SO UNWORKABLE AND RIDICULED THIS YEAR'S EFFORTS TO OPEN UP AND STREAMLINE HOUSE OPERATIONS HAVE SO FAR BEEN A JOKE THE DEMOCRATIC LEADERSHIP RAMMED THROUGH RULES CHANGES THAT GAVE EVEN MORE POWER TO THE SPEAKER AND IN A MOVE OF BREATHTAKING UNCONSTITUTIONALITY ALLOWED FIVE DEMOCRATIC DELEGATES TO VOTE ON MOST HOUSE BUSINESS THEN THE HOUSE DECIDED THAT THEIR VOTES WOULDN'T COUNT IF THEY DETERMINED THE OUTCOME OF ANY ISSUE MANY FRESHMEN MEMBERS ELECTED BY VOTERS WHO WANTED THEM TO CLEAN HOUSE ARE PROPERLY WORRIED THEY WILL SOON BE VIEWED AS PART OF THE PROBLEM RATHER THAN THE SOLUTION LAST WEEK THEY SHOWED A RENEWED INTEREST IN REFORM THEIR REVOLT CAME OVER AN ATTEMPT TO REAUTHORIZE FOUR SELECT COMMITTEES ON NARCOTICS HUNGER AGING AND CHILDREN THESE COMMITTEES WERE CREATED IN THE 1970S AND EARLY 1980S TO STUDY ISSUES FOR A LIMITED PERIOD OF TIME BUT WERE GIVEN NO POWER TO CONSIDER BILLS THEY HAVE BECOME MINIFIEFDOMS FOR GRANDSTANDERS SUCH AS REP PAT SCHROEDER OF COLORADO WHO CHAIRS CHILDREN YOUTH AND FAMILIES THEY'VE SPENT MILLIONS EMPLOY MORE THAN 90 STAFFERS AND DO LITTLE BUT GET IN THE WAY OF OTHER COMMITTEES TWELVE COMMITTEES ALREADY HAVE JURISDICTION OVER NARCOTICS LEGISLATION AND EIGHT ARE INVOLVED WITH HUNGER THE SELECT COMMITTEES' REPUTATIONS ARE SO POOR THAT LAST FALL THE DEMOCRATIC CAUCUS FLOATED A PROPOSAL TO KILL THEM SELECT COMMITTEE CHAIRS BEGGED FOR MERCY AND HOUSE LEADERS RELENTED AND AGREED TO BACK CONTINUED FUNDING BUT THEY FAILED TO REALIZE WHAT LITTLE STAKE OTHER COMMITTEE CHAIRMEN AND NEW MEMBERS HAD IN THE EXISTENCE OF SELECT COMMITTEES LAST WEEK THE HOUSE SUDDENLY VOTED 237 TO 180 TO KILL THE NARCOTICS COMMITTEE BY FAR THE MOST POPULAR A SURPRISING 82 DEMOCRATS SIDED WITH ALL BUT A HANDFUL OF REPUBLICANS TO END FUNDING HOUSE MAJORITY LEADER RICHARD GEPHARDT WAS SO SHOCKED HE CANCELED ALL FURTHER HOUSE BUSINESS THAT DAY WITH THE HOUSE LEADERSHIP SUFFERING A RARE DEFEAT YOU'D THINK GOP LEADERS WOULD PRESS THEIR ADVANTAGE AND MOVE IN TO KILL THE REMAINING COMMITTEES WRONG THE HOUSETRAINED REPUBLICAN LEADER ROBERT MICHEL QUICKLY OFFERED TO RESURRECT THE NARCOTICS PANEL AND FUND ALL OF THE SELECT COMMITTEES FOR ONE YEAR HE WAS EVEN BACKED BY MINORITY WHIP NEWT GINGRICH WHO CAN'T DECIDE IF HE WANTS TO BE A REVOLUTIONARY OR ONE OF THE RULERS FRESHMEN REPUBLICANS WENT BALLISTIC OVER MR MICHEL'S MOVE AND SEVERAL THREATENED A PALACE REVOLT FRESHMEN FELT THAT IF REPUBLICANS WOULDN'T SUPPORT ENDING A FEW MINOR COMMITTEES THEN WE DIDN'T DESERVE TO BE TAKEN SERIOUSLY ON OTHER REFORMS SAYS OHIO REP JOHN BOEHNER A VOTE WAS SCHEDULED FOR TODAY BUT DEMOCRATS FEARFUL OF LOSING PULLED THE VOTE FROM THE AGENDA PRESUMABLY THIS WILL GIVE THE AFFECTED GALAXIES OF SPECIALINTEREST LOBBIES SUCH AS THE AMERICAN ASSOCIATION OF RETIRED PERSONS TIME TO BEAT UP ON MEMBERS WHO WANT TO FREE CONGRESS FROM THEIR GRIP SO GOES THE BATTLE AGAINST GRIDLOCK IN WASHINGTON 9302020111 930202 BUSINESS BRIEF CYTOGEN INC FOURTHQUARTER NET LOSS NARROWED TO 26 MILLION CYTOGEN INC SAID FOURTHQUARTER NET LOSSES NARROWED REFLECTING TIGHTER CONTROL OF EXPENSES AND SLIGHTLY HIGHER REVENUE THE BIOPHARMACEUTICAL COMPANY IN PRINCETON NJ SAID NET LOSSES NARROWED TO 26 MILLION OR 13 CENTS A SHARE WITH 203 MILLION SHARES OUTSTANDING IN THE YEAREARLIER QUARTER NET LOSS WAS 31 MILLION OR 19 CENTS A SHARE WITH 184 MILLION SHARES OUTSTANDING REVENUE ROSE SLIGHTLY TO 51 MILLION FROM 5 MILLION THE COMPANY SAID PRODUCTRELATED REVENUE FROM EUROPEAN SALES WAS NEGLIGIBLE OPERATING EXPENSES FELL TO 77 MILLION FROM 81 MILLION DUE TO A NONRECURRING CHARGE OF 16 MILLION IN THE 1991 FOURTH QUARTER CYTOGEN'S SHARES FELL 50 CENTS TO CLOSE AT 1675 A SHARE IN OVERTHECOUNTER TRADING YESTERDAY 9302020110 930202 WHO'S NEWS FRONTIER ADJUSTERS OF AMERICA INC FRONTIER ADJUSTERS OF AMERICA INC PHOENIX ARIZ WILLIAM J ROCKE FOUNDER AND CHIEF EXECUTIVE OFFICER THIS INSURANCE ADJUSTER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS WILLIAM W STRAWTHER JR 66 YEARS OLD WHO WAS NAMED VICE CHAIRMAN JEAN E RYBERG 60 WHO PREVIOUSLY SERVED AS SECRETARY AND TREASURER WAS NAMED TO SUCCEED MR ROCKE 68 AS PRESIDENT JAMES S ROCKE 24 WILL SUCCEED MRS RYBERG AS SECRETARY AND TREASURER AND WAS ELECTED TO THE BOARD EXPANDING IT TO EIGHT MEMBERS JAMES ROCKE WHO HAS WORKED AS A CLAIMS ADJUSTER AND HAS FILLED VARIOUS ADMINISTRATIVE POSITIONS IS WILLIAM ROCKE'S SON 9302020109 930202 POLITICS & POLICY CLINTON ACTS TO GIVE MORE FLEXIBILITY ON RUNNING MEDICAID PLANS TO STATES BY LAURIE MCGINLEY AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON TOOK STEPS TO GIVE STATES GREATER FLEXIBILITY IN RUNNING MEDICAID PROGRAMS ORDERING THE HEALTH AND HUMAN SERVICES DEPARTMENT TO STREAMLINE ITS PROCESS FOR GRANTING WAIVERS FROM FEDERAL RULES MEANWHILE ADMINISTRATION OFFICIALS SAID THE WHITE HOUSE IS CONSIDERING SEVERAL IDEAS FOR PUMPING MONEY INTO MEDICAL RESEARCH AND HEALTH SERVICES AS PART OF THE ECONOMIC STIMULUS PACKAGE IT PLANS TO SUBMIT TO CONGRESS LATER THIS MONTH MR CLINTON MADE THE MEDICAID ANNOUNCEMENT AFTER A LENGTHY MEETING WITH THE NATION'S GOVERNORS A SESSION DOMINATED BY THE PROBLEM OF RELENTLESSLY RISING HEALTH COSTS AFTER THE SESSION MR CLINTON TOLD REPORTERS THAT GOVERNORS FOR YEARS HAVE BEEN SCREAMING FOR RELIEF FROM THE CUMBERSOME PROCESS BY WHICH THE FEDERAL GOVERNMENT HAS MICROMANAGED THE HEALTH CARE SYSTEM AFFECTING POOR AMERICANS MEDICAID IS THE JOINT FEDERALSTATE PROGRAM THAT PROVIDES HEALTH SERVICES FOR LOWINCOME PEOPLE STATES THAT WANT TO TRY NEW WAYS TO RUN THE SYSTEM MUST GET A FEDERAL WAIVER FROM AN ARRAY OF COMPLICATED REGULATIONS AND REQUIREMENTS A NUMBER OF STATES ALREADY HAVE OBTAINED SUCH WAIVERS AND MANY MORE PLAN TO SEEK THEM TO MAKE IT EASIER FOR THE STATES TO GET SUCH WAIVERS THE PRESIDENT SAID HE WOULD ORDER THE HUMAN SERVICE AGENCY'S HEALTH CARE FINANCING ADMINISTRATION TO DEVELOP A LIST OF POSSIBLE STATE ACTIONS THAT WOULD RECEIVE AUTOMATIC APPROVAL AND HE SAID THE FINANCING AGENCY WOULD BE GIVEN JUST ONE OPPORTUNITY TO ASK FOR ADDITIONAL INFORMATION ON STATES' WAIVER REQUESTS HE SAID HE WANTS TO FIND WAYS FOR ADDITIONAL STREAMLINING AT YESTERDAY'S MEETING WHITE HOUSE OFFICIALS DISCUSSED AN ECONOMIC STIMULUS PACKAGE OF UP TO 30 BILLION ACCORDING TO CARROLL CAMPBELL THE REPUBLICAN GOVERNOR OF SOUTH CAROLINA THAT SUM WOULD INCLUDE ADDED PRIVATE INVESTMENT THAT THE GOVERNMENT HOPES TO STIMULATE WITH TAX INCENTIVES AS PREVIOUSLY REPORTED MR CLINTON IS CONSIDERING A PLAN TO SEEK ABOUT 16 BILLION IN NEW SPENDING IN THE CURRENT FISCAL YEAR AND TO PROVIDE TAX INCENTIVES FOR BUSINESS TO MAKE ADDITIONAL INVESTMENTS HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA HAS IDENTIFIED FIVE AREAS IN WHICH SPENDING COULD BE INCREASED AS PART OF AN ECONOMIC STIMULUS PACKAGE IN A RECENT INTERVIEW SHE MENTIONED AIDS RESEARCH TREATMENT AND PREVENTION CHILDHOOD IMMUNIZATIONS AND HEAD START THE FEDERAL PROGRAM FOR DISADVANTAGED PRESCHOOL CHILDREN SHE DECLINED TO IDENTIFY THE OTHER TWO AREAS BERNADINE HEALY DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH HAS ASKED THE ADMINISTRATION TO REQUEST AN ADDITIONAL 100 MILLION FOR TUBERCULOSIS RESEARCH IN THE CURRENT FISCAL YEAR ACCORDING TO ADMINISTRATION OFFICIALS SOME 23 MILLION HAS BEEN APPROPRIATED FOR TUBERCULOSIS RESEARCH THIS FISCAL YEAR AND DR HEALY RECENTLY SQUEEZED AN ADDITIONAL 125 MILLION FOR TUBERCULOSIS RESEARCH OUT OF OTHER NIH PROGRAMS OFFICIALS SAY THE ADMINISTRATION IS SET ON INCLUDING PROPOSALS TO EXPAND FEDERAL CHILDHOOD IMMUNIZATION EFFORTS IN THE STIMULUS PACKAGE YESTERDAY DRUG COMPANY STOCK PRICES PLUMMETED ON A NEW YORK TIMES REPORT THAT THE ADMINISTRATION WAS CONSIDERING A PLAN TO HAVE THE FEDERAL AND STATE GOVERNMENTS BUY ALL CHILDHOOD VACCINES AND DISTRIBUTE THEM FREE PHARMACEUTICAL COMPANIES FEAR THAT IF THE GOVERNMENT BECOMES THE SOLE BUYER OF VACCINES IT WILL CONTROL THE PRICE OF IMMUNIZATIONS OFFICIALS SAID GOVERNMENT PURCHASE OF VACCINES IS ONE OF SEVERAL OPTIONS THE ADMINISTRATION IS CONSIDERING TO EXPAND IMMUNIZATIONS WE HAVEN'T DEVELOPED ANY HARD PROPOSAL YET SAID WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS HE ADDED THIS IS AN IMPORTANT INVESTMENT IN AMERICA'S FUTURE AN IMPORTANT INVESTMENT IN OUR KIDS AND IT WILL SAVE MONEY IN THE LONG RUN YESTERDAY'S MEDICAID ANNOUNCEMENT BY MR CLINTON DREW BIPARTISAN PRAISE THESE WAIVERS WILL ENABLE US TO RUN A MORE EFFICIENT PROGRAM SAID COLORADO GOV ROY ROMER A DEMOCRAT WHO IS PRESIDENT OF THE NATIONAL GOVERNORS ASSOCIATION WE NEED THE FLEXIBILITY TO HOLD COSTS DOWN GOV CAMPBELL MEANWHILE SAID THE CHANGES WOULD ENCOURAGE STATE INNOVATION GWENN BALDWIN A SPOKESWOMAN FOR OREGON GOV BARBARA ROBERTS SAID THAT THE CLINTON ANNOUNCEMENT WAS GOOD NEWS FOR THE CONTROVERSIAL OREGON MEDICAIDREFORM PROPOSAL WHICH WOULD CUT OFF MEDICAID FUNDING FOR CERTAIN TREATMENTS THE STATE CONSIDERS INEFFECTIVE AND USE THE SAVINGS TO INCREASE BENEFITS FOR LOWINCOME PEOPLE OREGON'S REQUEST FOR A MEDICAID WAIVER CURRENTLY IS PENDING AS MEDICAID EATS UP A LARGER AND LARGER PROPORTION OF STATE BUDGETS GOVERNORS HAVE BECOME INCREASINGLY AGGRESSIVE IN TRYING TO CONTROL HEALTH COSTS WHILE STILL PROVIDING NEEDED CARE IN A POLICY STATEMENT APPROVED YESTERDAY THE GOVERNORS' ASSOCIATION CALLED FOR UNIVERSAL ACCESS TO HEALTH CARE AND ENDORSED THE IDEA OF MANAGED COMPETITION UNDER MANAGED COMPETITION WHICH IS EXPECTED TO BE A CORNERSTONE OF HEALTH OVERHAUL LEGISLATION THE CLINTON ADMINISTRATION PLANS TO PROPOSE THIS SPRING LARGE HEALTH INSURANCE PURCHASING NETWORKS WOULD BE SET UP TO BARGAIN FOR HEALTH COVERAGE ON BEHALF OF BUSINESSES AND INDIVIDUALS THE GOVERNORS ALSO PROPOSED LIMITING EMPLOYER AND EMPLOYEE TAX BREAKS FOR EMPLOYERPROVIDED HEALTH INSURANCE A CHANGE THAT ADVOCATES SAY WOULD INTRODUCE GREATER PRICE AWARENESS AMONG HEALTH CARE CONSUMERS AND THEY CALLED FOR MINIMUM FEDERAL STANDARDS FOR HEALTH INSURANCE INCLUDING LIMITS ON THE VARIATION IN RATES THAT DIFFERENT INDIVIDUALS AND GROUPS PAY AND GUARANTEED AVAILABILITY OF INSURANCE POLICIES BUT THE GOVERNORS DIDN'T ENDORSE THE IDEA OF PUTTING A NATIONAL LIMIT ON HEALTH EXPENDITURES SOMETHING MR CLINTON HAS SAID HE PLANS TO PROPOSE IT IS UNREALISTIC TO IMMEDIATELY ENFORCE A STRICT BUDGET LIMIT ON HEALTH CARE SPENDING SINCE AVAILABLE DATA ARE NOT SUFFICIENT TO SET ACCURATE SPENDING CEILINGS THE GOVERNORS' ASSOCIATION SAID 9302020108 930202 WHO'S NEWS BERNARD CHAUS NAMES BAKER TO PRESIDENT POST NEW YORK BERNARD CHAUS INC SAID IT NAMED RICHARD BAKER PRESIDENT OF THIS WOMEN'S APPAREL DESIGNER AND RETAILER SUCCEEDING JOSEPHINE CHAUS WHO WILL CONTINUE AS CHAIRWOMAN AND CHIEF EXECUTIVE MR BAKER 46 YEARS OLD HAD BEEN PRESIDENT OF THE ESPRIT SPORTS DIVISION OF ESPRIT DE CORP AND MOST RECENTLY PRESIDENT OF THE ESPRIT'S WOMENSWEAR DIVISION A POSITION HE RESIGNED FROM IN NOVEMBER ESPRIT IS A PRIVATELY HELD APPAREL COMPANY IN SAN FRANCISCO IN HIS NEW POSITION AS PRESIDENT OF CHAUS HE WILL BE IN CHARGE OF MARKETING AND SALES FOR ALL DIVISIONS IN THE COMPANY MRS CHAUS WHO HAS SERVED IN THOSE POSITIONS SINCE THE DEATH OF HER HUSBAND AND COMPANY FOUNDER BERNARD CHAUS IN MAY 1991 POINTS OUT THAT HER OWN STRENGTHS ARE DESIGN AND OPERATIONS AND THAT MR BAKER'S SKILLS WILL COMPLEMENT HERS DICK BAKER HAS VERY STRONG TIES WITH ALL OF THE KEY PEOPLE IN RETAILING SHE SAID HE WILL HELP BETTER DEFINE OUR MARKET NICHE AND HAVE THE RESPONSIBILITY TO DEVELOP CUSTOMER RELATIONSHIPS AND PROMOTE OUR PRODUCTS IN DEPARTMENT STORE INSTORE SHOPS THE COMPANY SAID MR BAKER IS EXPECTED TO BE NAMED A DIRECTOR OF THE COMPANY LATER THIS MONTH 9302020107 930202 WHO'S NEWS REVLON'S HAMMOND RESIGNS AS OUTSIDER IS NAMED UNIT HEAD NEW YORK MICHAEL C HAMMOND PRESIDENT OF REVLON INC'S US AND CANADIAN OPERATIONS RESIGNED ABRUPTLY FOLLOWING NEWS THAT A COLGATEPALMOLIVE CO EXECUTIVE HAD BEEN NAMED CHAIRMAN OF THE UNIT A REVLON SPOKESMAN SAID THE RESIGNATION OF THE 47YEAROLD MR HAMMOND AFTER 20 YEARS WITH THE COMPANY WAS SPARKED BY HIS DECISION NOT TO WORK UNDER GEORGE FELLOWS 50 WHO HAD BEEN PRESIDENT OF COLGATE LATIN AMERICA SINCE LAST NOVEMBER MR HAMMOND MADE HIS MARK AS HEAD OF REVLON'S SUCCESSFUL ALMAY COSMETIC LINE BEFORE BEING APPOINTED TO HEAD REVLON NORTH AMERICA IN 1991 MR FELLOWS JOINED COLGATE AS PRESIDENT OF ITS MENNEN NORTH AMERICA DIVISION IN 1989 AND PREVIOUSLY WORKED AT REVLON AS PRESIDENT OF ITS DOMESTIC BEAUTY GROUP THE COMPANY SAID MR FELLOWS WILL HEAD ALL MARKETING SALES AND OPERATIONS FOR REVLON IN THE US AND CANADA REVLON NORTH AMERICA IS THE COMPANY'S LARGEST OPERATING DIVISION 9302020106 930202 BILZERIAN IS TOLD BY JUDGE TO GIVE UP 331 MILLION PROFIT BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER CORPORATE RAIDER PAUL A BILZERIAN WAS ORDERED TO GIVE UP 331 MILLION IN ILLICIT PROFITS FROM TAKEOVER EFFORTS DATING BACK TO THE MID1980S BUT HIS ESTATE CURRENTLY IS VALUED AT ZERO THE SECURITIES AND EXCHANGE COMMISSION WON A COURT ORDER DIRECTING THE DISGORGEMENT BUT UNFORTUNATELY FOR THE AGENCY LAWYERS OVERSEEING THE LIQUIDATION OF MR BILZERIAN'S ESTATE IN US BANKRUPTCY COURT IN TAMPA FLA SAID THEY HAVE COLLECTED NOTHING TO DATE THE LAWYERS REPRESENT THE TRUSTEE WHO IS RESPONSIBLE FOR MARSHALLING FUNDS TO PAY OFF THE CLAIMS OF MR BILZERIAN'S CREDITORS IN THIS CASE THAT JOB INCLUDES FIGHTING MR BILZERIAN'S EFFORT TO USE FLORIDA STATE LAWS TO SHIELD THREE HOMESTEADS INCLUDING A NEW 38000SQUAREFOOT HOME NEAR TAMPA FROM CREDITORS ACCORDING TO STEPHEN MEININGER ONE OF THE TRUSTEE'S LAWYERS AT THIS TIME MR MEININGER SAID I DON'T THINK WE SEE A POT AT THE END OF THE RAINBOW BUT SEC LITIGATORS CATHERINE SHEA AND BARRY GOLDSMITH SAID THEY WILL ASK THE TAMPA BANKRUPTCY JUDGE TO RULE THAT MR BILZERIAN CAN'T DIMINISH OR ESCAPE THE DISGORGEMENT ORDER THROUGH THE BANKRUPTCY PROCESS MOST CREDITORS' CLAIMS ARE STRIPPED TO FRACTIONS OF THEIR VALUE IN BANKRUPTCY PROCEEDINGS OBTAINING A COURT ORDER THAT MR BILZERIAN CAN'T DISCHARGE THE SEC CLAIM IN THE BANKRUPTCY PROCESS WILL ALLOW US TO GO AFTER THE MONEY IN PERPETUITY MR GOLDSMITH SAID THE DISGORGEMENT ORDER ISSUED LAST WEEK BY FEDERAL JUDGE STANLEY HARRIS OF WASHINGTON IS BASED ON THE SEC'S CALCULATIONS OF MR BILZERIAN'S PROFIT FROM FRAUDULENT PURCHASES OF SHARES OF CLUETT PEABODY & CO AND HAMMERMILL PAPER CO IN 1985 AND 1986 THE BULK OF THE ILLICIT PROFITS OR 283 MILLION CAME FROM THE HAMMERMILL PURCHASES THE JUDGE'S ORDER SAID MR BILZERIAN FORMER CHAIRMAN OF THE NOWDEFUNT SINGER CO WAS CONVICTED IN JUNE 1989 OF FEDERAL CRIMINAL CHARGES IN CONNECTION WITH THE STOCK PURCHASES INCLUDING CHARGES THAT HE LIED ABOUT THE SOURCE OF HIS FUNDS FOR THE PURCHASES AND ABOUT THE SIZE OF HIS STAKE IN THE COMPANIES HE WAS RELEASED FROM FEDERAL PRISON LATE LAST YEAR THROUGH A RELATIVE MR BILZERIAN SAID YESTERDAY THAT HE WAS EXTREMELY DISAPPOINTED IN THE RULING AND WILL BE APPEALING IN THE MEANTIME A HEARING IS SCHEDULED FOR TOMORROW ON MR BILZERIAN'S REQUEST THAT THE TAMPA BANKRUPTCY JUDGE DISMISS THE SEC'S EFFORTS TO KEEP ITS CLAIM INTACT THROUGH THE BANKRUPTCY PROCEEDINGS MR BILZERIAN IS REPRESENTING HIMSELF IN THE SEC CASE IN WASHINGTON AND IN THE BANKRUPTCY PROCEEDINGS WHERE THE CREDITORS INCLUDE HIS FORMER LAWYERS FROM THE WASHINGTON FIRM OF WILMER CUTLER & PICKERING 9302020105 930202 ECONOMY JOB GROWTH STALLS DESPITE RECOVERY AS MANY SMALL BUSINESSES STOP HIRING BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL ONCE A HAVEN FOR LAIDOFF WORKERS FROM BIG COMPANIES SMALL BUSINESSES ARE PULLING IN THEIR WELCOME MATS AND THAT'S DISTURBING SOME ECONOMISTS AND BUSINESS OWNERS WHO WORRY THAT THE ECONOMY IS LOSING ITS ABILITY TO CREATE JOBS AS IT HAD BEFORE THE PROPORTION OF JOBS YOU'VE GOT BACK OF WHAT WAS LOST DURING THE RECESSION IS FAR AND AWAY THE WORST OF ANY RECOVERY IN THE POSTWAR WORLD WAR II ERA SAYS LOWELL GALLAWAY AN OHIO UNIVERSITY ECONOMIST AND COAUTHOR OF A RECENT CONGRESSIONAL REPORT DERAILING THE SMALL BUSINESS JOB EXPRESS THE BIGBUSINESS CUTBACKS IN RECENT DAYS 50000 AT SEARS ROEBUCK & CO OVER 6000 AT UNITED TECHNOLOGIES CORP AS MANY AS 20000 AT BOEING CO 2000 AT EASTMAN KODAK CO 1400 AT ARMCO INC ARE PAINFUL BUT NOTHING NEW ALTHOUGH MANY BIG CORPORATIONS EXPANDED THEIR PAYROLLS DURING THE 1980S THE TOTAL NUMBER OF JOBS FOR THE TOP 500 US INDUSTRIAL COMPANIES ACTUALLY DECLINED AT THE RATE OF 400000 EACH YEAR SINCE 1980 BUT IN THE '80S SMALL BUSINESSES OFFSET THE BIG RETRENCHMENTS SMALL BUSINESSES WERE RESPONSIBLE FOR ALMOST ALL OF THE 20 MILLION NET NEW JOBS IN THE DECADE BETWEEN 1988 AND 1990 ACCORDING TO THE SMALL BUSINESS ADMINISTRATION COMPANIES WITH FEWER THAN 20 EMPLOYEES CREATED FOUR MILLION JOBS COMPANIES EMPLOYING OVER 100 LOST 12 MILLION JOBS NOW THESE TINY ENGINES OF JOB GROWTH APPEAR TO BE IDLING A DECEMBER SURVEY OF 827 SMALL BUSINESSES BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESSES FOUND THAT 13 PLAN TO EXPAND EMPLOYMENT IN THE NEXT THREE TO SIX MONTHS WHILE 10 PLAN REDUCTIONS THIS WAS UP ONLY SLIGHTLY FROM THE PREVIOUS QUARTER AND WELL BELOW 1980S LEVELS THE SAME COMPANIES SAID THEY TERMINATED MORE WORKERS THAN THEY HIRED OVER THE PREVIOUS THREE MONTHS THERE'S NO MOVEMENT AT ALL AN NFIB SPOKESMAN SAYS THE SURVEY ALSO FOUND EVIDENCE OF A LINGERING CREDIT SQUEEZE CAPITALSPENDING PLANS REMAIN AT WEAK LEVELS BORROWING REMAINS NEAR RECORD LOWS AND COMPANIES EXPECT MORE DIFFICULT CREDIT CONDITIONS BY A 10TO1 MARGIN NEW BUSINESS STARTUPS MEANWHILE WERE UP A MODEST 56 THROUGH THE FIRST EIGHT MONTHS OF 1992 AFTER FIVE STRAIGHT YEARS OF DECLINE ACCORDING TO DUN & BRADSTREET BUSINESS FAILURES CONTINUED TO RISE TO A RECORD THE ECONOMY ADDED 15 MILLION JOBS SHORT OF DUN & BRADSTREET'S FORECAST OF 18 MILLION BETWEEN SEPTEMBER 1990 AND SEPTEMBER 1992 THE SMALL BUSINESS ADMINISTRATION SAYS INDUSTRIES DOMINATED BY SMALL BUSINESSES LOST 320000 JOBS WHILE INDUSTRIES WITH MOSTLY BIG BUSINESSES DROPPED 432000 JOBS DURING THE FIRST YEAR OF THE RECOVERY BEGINNING IN JUNE 1992 A PERIOD NORMALLY MARKED BY EXPLOSIVE GROWTH IN SMALLBUSINESS EMPLOYMENT SMALLBUSINESS INDUSTRIES PICKED UP ONLY 173000 JOBS NOT ENOUGH TO SOAK UP THE 235000 LOST BY BIGBUSINESS INDUSTRIES THE PROBLEM COMES FROM BUSINESSES LIKE JOHN W DAWSON INSURANCE INC A 12PERSON AGENCY IN COLUMBUS OHIO IT ADDED A PERSON A YEAR IN THE 1980S BUT BECAUSE OF AUTOMATION AND MORE EFFICIENT BILLING THE GROWTH IS OVER WHEN IT ACQUIRED A FOURPERSON AGENCY LAST YEAR IT HAD NO NEED FOR THREE OF THE FOUR WORKERS THERE WE COULD PUT ON ANOTHER MILLION IN PREMIUMS WITHOUT NEEDING ANYBODY ELSE SAYS OWNER JOHN W DAWSON JR SIMILARLY ASSET MANAGEMENTCONSULTANT SERVICE INC OF ALBUQUERQUE NM WHICH GREW TO FIVE EMPLOYEES FROM THREE IN THE 1980S DOESN'T PLAN ANY HIRINGS DESPITE A NEAR DOUBLING IN ITS ASSETS TO 30 MILLION BECAUSE OF GREATER EFFICIENCY WE COULD ADD ANOTHER 15 MILLION AND WE WON'T REALLY HAVE TO ADD ANY MORE PEOPLE SAYS ELIZABETH PAYNE WHO RUNS THE BUSINESS WITH HER HUSBAND EVEN IF SHE WANTED TO HIRE THE BUSINESS CAN'T AFFORD ANY MORE MONEY FOR HEALTH INSURANCE IT'S PRETTY MUCH A CASE OF ECONOMICS SHE SAYS IN SPRINGFIELD ILL THE MANPOWER INC FRANCHISE WHICH GREW FROM SIX TO 10 WORKERS IN THE 1980S HAS NO PLANS FOR MORE EVEN THOUGH BUSINESS IS UP 30 WE HAVE SOME MORE EFFICIENCIES AND WE'VE AUTOMATED A LITTLE MORE SAYS OWNER RON NAUGHTON WE CAN HANDLE EVEN MORE BUSINESS BUSINESSES AROUND THE COUNTRY ARE APPARENTLY FACING SIMILAR SITUATIONS THE SOFTNESS IN EMPLOYMENT IN THE CURRENT EXPANSION IS PARTLY THE COUNTERPART OF A DRAMATIC IMPROVEMENT IN PRODUCTIVITY FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD CONGRESS LAST WEEK NOTING THAT PRODUCTIVITY HAS GROWN BY A FASTERTHANEXPECTED 25 THE CURRENT ECONOMIC RECOVERY IS UNIQUE AMONG MODERN RECOVERIES IN THAT IT HAS BEEN LED BY CORPORATE PRODUCTIVITY AND COSTCUTTING INSTEAD OF BY CONSUMERS WHO FIND THEMSELVES WITH NEW JOBS ACCORDING TO THE THEORY COSTCUTTING SHOULD BOOST CORPORATE PROFITS LEADING TO MORE CAPITAL INVESTMENT AND MORE HIRING BUT THIS HASN'T WORKED SO FAR COMPANIES FIND THEMSELVES MORE PROFITABLE BUT INSTEAD OF SPENDING AND HIRING THEY CONTINUE TO SHRINK WITHOUT EFFORTS BY THE CLINTON ADMINISTRATION TO ENCOURAGE SMALL BUSINESSES AND BIG BUSINESSES TO REACH INTO NEW AREAS THE JOBCREATION PROBLEM COULD ULTIMATELY JEOPARDIZE THE RECOVERY AND PULL DOWN AMERICAN WAGES AND LIVING STANDARDS SOME ECONOMISTS SAY THIS IS FAR MORE PROFOUND THAN THE SHORTTERM WIGGLES OF THE BUSINESS CYCLE SAYS STEPHEN S ROACH CHIEF ECONOMIST WITH MORGAN STANLEY YOU CAN'T SUSTAIN MOMENTUM IF YOU'RE DOING IT BY ELIMINATING JOBS AND THE ECONOMY'S INCOMEGENERATING CAPACITY ULTIMATELY YOU'RE LEFT WITH TOO FEW PEOPLE TO HOLD THE THING TOGETHER THE THING CAN IMPLODE ADDING TO THE TROUBLES THE DEFENSE INDUSTRY WILL LOSE ANOTHER 15 MILLION JOBS ON TOP OF THE 600000 IT HAS SHED SO FAR MR ROACH PREDICTS AND MANY OF THE 85 MILLION JOBS IN HEALTH CARE OUT OF 108 MILLION JOBS IN THE WHOLE US ECONOMY COULD BE IN JEOPARDY AS THE COUNTRY LOOKS TO CUT HEALTH CARE COSTS OF COURSE THERE ARE MANY COMPANIES STILL ADDING EMPLOYEES A COOPERS & LYBRAND SURVEY OF 300 SMALL COMPANIES WITH GROWTH RATES OF 25 OR MORE FOUND THAT 77 PLAN TO INCREASE THEIR WORK FORCES THE AVERAGE PLANNED INCREASE IS 15 AS THE LARGE COMPANIES CONTINUE TO SHED AND THE MOMS AND POPS ARE ABSOLUTELY FLAT THERE'S STILL A LARGE POOL OF FIRMS CREATING JOBS SAYS DAVID BIRCH AN ECONOMIST WITH COGNETICS INC IN CAMBRIDGE MASS HE SAYS THERE ARE 500000 SUCH COMPANIES MOSTLY SERVICE BUSINESSES WITH REVENUE OF 5 MILLION TO 150 MILLION AND WHILE MR BIRCH AGREES THAT EMPLOYMENT GROWTH WILL BE SLOWER THAN IN THE PAST HE DOESN'T THINK THAT WILL MEAN HIGHER UNEMPLOYMEMT THE AGING OF THE BABY BOOMERS THE SAME THING THAT HE BELIEVES CAUSED THE RECESSION ALSO MEANS THE WORK FORCE WON'T GROW VERY FAST WE'RE IN WHAT IS NOW THE LONGTERM EQUILIBRIUM SLOW AND POKY COMPARED TO THE '80S BUT THIS IS THE WAY IT'S GOING TO BE FOR 30 YEARS HE SAYS BUT EVEN IF EMPLOYMENT PICKS UP GRADUALLY AS MANY BELIEVE IT WILL THE NEW JOBS MAY OFFER LOWER WAGES AND FEWER BENEFITS MR GALLAWAY THE OHIO UNIVERSITY ECONOMIST BELIEVES SMALL BUSINESSES HAVE BEEN PREVENTED FROM HIRING BECAUSE GOVERNMENT REGULATIONS AND TAXES HAVE RAISED THEIR COSTS BY SOME 34 SINCE 1989 SOMEONE'S GOT TO PAY THESE COSTS HE SAYS THESE COSTS WILL BE PAID BY WORKERS IN THE FORM OF LOWER WAGES OR FEWER JOBS MR GALLAWAY'S SOLUTION LIGHTEN THE BURDENS PUT ON SMALL BUSINESSES BY ENVIRONMENTAL REGULATIONS MINIMUM WAGE INCREASES AND AFFIRMATIVEACTION AND DISABLEDACCESSIBILITY REQUIREMENTS OTHERS THINK THE ANSWER IS IN EASING THE CREDITCRUNCH FOR SMALL BUSINESSES IN THE FORM OF LOOSER REGULATION AND TAXFREE DIVIDENDS TO ENCOURAGE INVESTORS THE GOVERNMENT COULD ALSO PROVIDE INCENTIVES SUCH AS TAX CREDITS FOR SMALL BUSINESS HIRES AND A REDUCTION OR ELIMINATION OF THE CAPITALGAINS TAXES FOR NEW BUSINESSES AND OLD COMPANIES STARTING NEW ENTERPRISES WHATEVER THE STRATEGY FEW DISAGREE THAT EFFORTS SHOULD TARGET THE EIGHT MILLION TO 10 MILLION BUSINESSES EMPLOYING UNDER 50 WORKERS SAYS JOSEPH DUNCAN CHIEF ECONOMIST FOR DUN & BRADSTREET IF YOU WANT TO STIMULATE JOB GROWTH YOU'VE GOT TO STIMULATE SMALL BUSINESS 9302020104 930202 WOOLWORTH MERGES TWO UNITS NEW YORK WOOLWORTH CORP HAS MERGED TWO SUBSIDIARIES INTO A SINGLE CORPORATION WOOLWORTH CANADA INC EFFECTIVE JAN 31 THE TWO UNITS FW WOOLWORTH CO AND KINNEY CANADA INC WERE MERGED TO CUT COSTS THE COMPANY SAID DOUGLAS J LAWSON WHO HEADED BOTH SUBSIDIARIES HAS BEEN NAMED VICE CHAIRMAN AND CHIEF EXECUTIVE OF WOOLWORTH CANADA 9302020103 930202 JUDGE INTENDS TO BACK REORGANIZATION PLAN FOR NATIONAL GYPSUM DALLAS A FEDERAL BANKRUPTCY JUDGE SAID THAT HE INTENDS TO CONFIRM THE REORGANIZATION PLAN PROPOSED BY NATIONAL GYPSUM CO A MOVE THAT WOULD ALLOW THE WALLBOARD MAKER TO EMERGE FROM BANKRUPTCY BY MIDYEAR AS PART OF THE PLAN CURRENT AND FUTURE CLAIMS OF INJURY FROM ASBESTOS EXPOSURE WOULD BE CHANNELED TO A SETTLEMENT TRUST JUDGE STEVEN A FELSENTHAL SAID ACCORDING TO A TRANSCRIPT OF THE ORAL RULING PROVIDED BY THE COMPANY THE TRUST WOULD BE FUNDED BY INSURANCE POLICIES WHOSE FINAL VALUE HASN'T BEEN DETERMINED PROCEEDS FROM THE SALE OF NATIONAL GYPSUM'S AUSTIN CO UNIT WHICH THE JUDGE VALUED AT 125 MILLION AND 10 MILLION IN CASH CURRENT CLAIMANTS WOULD BE ENJOINED FROM FILING ADDITIONAL CLAIMS AGAINST THE REORGANIZED NATIONAL GYPSUM THE JUDGE RULED HE ALSO APPROVED PROVISIONS IN THE PLAN TO SETTLE ALL OUTSTANDING PROPERTY DAMAGE CLAIMS FOR ABOUT 137 MILLION WILBUR ROSS OF ROTHSCHILD INC THE FINANCIAL ADVISER TO A DISSIDENT BOND AND TRADE COMMITTEE WOULDN'T COMMENT ON THE RULING WHICH HE SAID HE HADN'T YET READ HE SAID THE COMMITTEE SHARED THE COMPANY'S DESIRE TO RESOLVE CLAIMS PERTAINING TO THE COMPANY'S PREVIOUS MANUFACTURE OF ASBESTOS WE JUST WANT TO BE SURE THAT'S WHAT THIS RULING DOES MR ROSS SAID JUDGE FELSENTHAL SCHEDULED A HEARING ON FEB 24 TO CONSIDER AN ORDER CONFIRMING THE PLAN AND OTHER ISSUES RELATED TO THE CONFIRMATION BUT SAID THOSE ISSUES WOULDN'T RESULT IN THE DENIAL OF CONFIRMATION THE JUDGE DIDN'T SPECIFY THE NATURE OF THE ISSUES AND THE COMPANY COULDN'T ELABORATE THE CONFIRMATION WOULD CONCLUDE A HARDFOUGHT BATTLE FOR CONTROL OF THE COMPANY WHICH FILED FOR BANKRUPTCYLAW PROTECTION IN 1990 THE COMPANY AND THE BOND AND TRADE COMMITTEE EACH PROPOSED REORGANIZATION PLANS BUT THE JUDGE RULED IN DECEMBER THAT THE CREDITORS' PLAN WASN'T CONFIRMABLE IN PART BECAUSE ITS 630 MILLION ESTIMATE OF THE COMPANY'S VALUE WAS TOO HIGH