INTERNATIONAL JENSEN INC LINCOLNSHIRE ILL ROBERT H JENKINS EXECUTIVE VICE PRESIDENT CONSTRUCTION PRODUCTS AND ENGINEERED POLYMERS FOR ILLINOIS TOOL WORKS INC WAS NAMED A DIRECTOR OF THIS MAKER OF SPEAKERS AND OTHER AUDIO PRODUCTS INCREASING BOARD MEMBERSHIP TO FIVE 9301270163 930127 WHO'S NEWS DELTA AIR LINES DELTA AIR LINES ATLANTA MICHAEL G MEDLICOTT WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT EUROPE BASED IN LONDON MR MEDLICOTT 49 YEARS OLD WILL OVERSEE DELTA'S SALES MARKETING PUBLIC RELATIONS AND GOVERNMENT AFFAIRS FOR EUROPE THE MIDDLE EAST AND WESTERN ASIA HE IS CURRENTLY CHAIRMAN OF THE EUROPEAN TRAVEL COMMISSION AND A DIRECTOR OF THE LONDON TOURIST BOARD 9301270162 930127 WASTE MANAGEMENT UK UNIT TO BOOST DUMP CAPACITY BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE MANAGEMENT INC'S OVERSEAS UNIT AGREED TO INVEST 121 MILLION 1883 MILLION TO MORE THAN TRIPLE ITS UNITED KINGDOM GARBAGE DUMP CAPACITY AND RAISE ITS STAKE IN A BRITISH WASTE WATER TREATMENT CONCERN THE MOVE IS SIMILAR TO A HIGHLY SUCCESSFUL STRATEGY WASTE MANAGEMENT FOLLOWED IN NORTH AMERICA DURING THE 1970S AND EARLY 1980S LOCKING UP LUCRATIVE DUMP CAPACITY BEFORE REGULATIONS AND OTHER ENVIRONMENTAL CONCERNS MADE OBTAINING PERMITS MORE DIFFICULT THE STRATEGY CATAPULTED THE OAK BROOK ILL COMPANY PAST RIVAL BROWNINGFERRIS INDUSTRIES INC IN THE US AND WASTE MANAGEMENT IS NOW USING ITS FINANCIAL MUSCLE TO BECOME THE DOMINANT TRASH HAULING AND DISPOSAL CONCERN IN EUROPE THE PURCHASE PRICE FOR THE DUMPS AND RELATED HAULING BUSINESS WAS RELATIVELY HIGH BUT WASTE MANAGEMENT EXPECTS TO MAKE THAT BUSINESS MORE PROFITABLE BY INCREASING GARBAGE VOLUMES INTO THE DUMPS COMBINING SOME OPERATIONS AND CUTTING SOME JOBS WASTE MANAGEMENT INTERNATIONAL PLC THE LONDON OVERSEAS UNIT THAT IS 56OWNED BY WASTE MANAGEMENT SAID IT AGREED TO PAY 645 MILLION TO RAISE ITS STAKE IN WESSEX WATER PLC TO 20 FROM 15 THE TWO COMPANIES' JOINT VENTURE IN THE UK TRASH BUSINESS WESSEX WASTE MANAGEMENT LTD IN TURN ACQUIRED THE TRASH DISPOSAL AND HAULING BUSINESS OF NFC PLC A SHIPPING CONCERN FOR 113 MILLION INCLUDING THE ASSUMPTION OF DEBT AND PAYMENTS TO BE MADE IN THE NEXT THREE YEARS WASTE MANAGEMENT INTERNATIONAL'S SHARE OF THAT PURCHASE IS 565 MILLION THE ASSETS FROM NFCOPERATED UNDER THE NAME WASTE MANAGEMENT LTD BUT HAVING NO PRIOR RELATIONSHIP TO THE US COMPANY INCLUDE SEVEN EXISTING GARBAGE DUMPS WITH COMBINED PERMITTED CAPACITY OF 43 MILLION CUBIC METERS THE PURCHASE ALSO INCLUDES FOUR ADDITIONAL DUMP SITES UNDER DEVELOPMENT THAT IF PERMITTED WOULD ADD 34 MILLION CUBIC METERS OF CAPACITY DUMPS ARE THE MOST PROFITABLE PART OF THE GARBAGE BUSINESS PARTICULARLY HIGHVOLUME SITES DUMP FEES ARE RUNNING ABOUT 7TO8 A CUBIC METER IN MUCH OF THE UK ACCORDING TO JOE HOLSTEN A VICE PRESIDENT AT WASTE MANAGEMENT INTERNATIONAL BUT THE COMPANY HOPES THAT SOONTOBEENACTED ENVIRONMENTAL REGULATIONS WILL FORCE SOME DUMPS TO CLOSE AND THEREFORE SEND PRICES HIGHER THE BUSINESS ACQUIRED FROM NFC HAD REVENUE IN THE YEAR ENDED OCT 2 1992 OF 306 MILLION AND PROFITS BEFORE INTEREST AND TAXES OF 44 MILLION MR HOLSTEN ACKNOWLEDGED THAT THE PURCHASE PRICE WAS A RELATIVELY HIGH MULTIPLE OF THOSE RESULTS BUT SAID THAT WAS DUE TO THE HIGH COMPONENT OF DUMP CAPACITY AND THE POTENTIAL COST SAVINGS IN COMBINING THE OPERATIONS WITH WESSEX WASTE THE JOINT VENTURE PREVIOUSLY HAD UK DUMP CAPACITY OF ONLY 18 MILLION CUBIC METERS 9301270161 930127 INTERNATIONAL SUMITOMO BANK BITING THE BULLET WRITES OFF LOANS BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SUMITOMO BANK LTD SAID IT WILL WRITE OFF 100 BILLION YEN 8112 MILLION IN BAD LOANS THAT IT MADE TO AN OSAKA REALESTATE COMPANY AS PART OF ITS EFFORT TO RESTRUCTURE A SCANDALPLAGUED AFFILIATE THE MOVE IS ONE OF THE BIGGEST YET BY A MAJOR JAPANESE BANK TO PUT THE EXCESSES OF JAPAN'S ASSET BOOM BEHIND IT THE MOVE PROMPTED THE BANK THE WORLD'S SECOND LARGEST IN ASSET SIZE TO SLASH ITS PRETAX EARNINGS PROJECTION FOR THE FISCAL YEAR ENDING MARCH 31 TO 25 BILLION YEN A REDUCTION OF 84 THE WRITEOFF WHICH REPRESENTS A SIXTH OF SUMITOMO BANK'S TOTAL LOAN EXPOSURE TO THE AFFILIATE ITOMAN CORP IS AIMED AT SMOOTHING THE MERGER IN APRIL OF ITOMAN AND ANOTHER RELATED COMPANY SUMIKIN BUSSAN CO A BANK SPOKESMAN SAID ANALYSTS EXPECTED THE ANNOUNCEMENT MADE AFTER THE CLOSE OF TRADING TUESDAY TO HURT SUMITOMO BANK'S STOCK PRICE OVER THE SHORT TERM BUT MANY HAILED THE MOVE AS EVIDENCE THE OSAKA LENDER IS MOVING QUICKLY TO SOLVE ITS DEBT PROBLEMS IT'S GOOD THAT SUMITOMO BANK IS PREPARED TO SACRIFICE PROFIT FOR THE SHORT TERM IN ORDER TO SHORE UP ITS BALANCE SHEET FOR THE LONG TERM SAID J BRIAN WATERHOUSE A FINANCIAL ANALYST AT JAMES CAPEL PACIFIC LTD SOME ANALYSTS EXPECT OTHER MAJOR JAPANESE LENDERS TO FOLLOW SUMITOMO'S LEAD IN WRITING OFF LOANS AS THE FINANCIAL YEAR NEARS AN END IF THEY CAN GET THE GOVERNMENT'S PERMISSION WITH FUNDING COSTS FALLING AND LOAN SPREADS HIGH BANKS ENJOY A TEMPORARY WINDOW OF OPPORTUNITY FOR WRITING OFF BAD LOANS BUT THEY CAN'T DECLARE WRITEOFFS OR SELL EQUITY HOLDINGS TO OFFSET THEM WITHOUT THE BLESSING OF THE POWERFUL MINISTRY OF FINANCE THE MINISTRY IS TRYING TO PREVENT AN EXODUS OF INVESTORS FROM THE STOCK MARKET AT THE SAME TIME IT PROMOTES RECOVERY OF THE BANKS FOR THE MOMENT IT IS TELLING BANKS TO HOLD THEIR SHARES SUMITOMO WILL MAINTAIN ITS DIVIDEND AT 85 YEN A SPOKESMAN SAID THE BANK MAY HAVE TO DIP INTO CASH RESERVES TO PAY SHAREHOLDERS DURING THE HEYDAY OF SPECULATION IN JAPAN'S STOCK AND PROPERTY MARKETS SUMITOMO BANK EMERGED AS THE NATION'S MOST PROFITABLE AND AGGRESSIVE COMMERCIAL BANK BUT REVELATIONS OF THE BANK'S DUBIOUS ART AND PROPERTY DEALS WITH ITOMAN A LITTLEKNOWN TEXTILE CONCERN THAT GAINED A REPUTATION FOR FLAMBOYANT FINANCIAL SCHEMES SULLIED THE BANK'S IMAGE AND FORCED THE RESIGNATION OF ITS CHAIRMAN 9301270160 930127 POLITICS & POLICY CLINTON'S CALL FOR SACRIFICES ON DEFICIT IS LIKELY TO COLLIDE WITH PLANS OF DEMOCRATS IN CONGRESS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AT A POSTELECTION GATHERING OF FRESHMAN LAWMAKERS NORTH CAROLINA DEMOCRAT MELVIN WATT SET AN IMPASSIONED TONE WHEN HE VOWED TO WALK AWAY FROM CONGRESS RATHER THAN SHORTCHANGE THE NATION'S NEEDS BUT IT ISN'T CLEAR THAT REP WATT OR THE REST OF THE BUMPER CROP OF NEWCOMERS TO CAPITOL HILL SEES THOSE NEEDS IN THE SAME WAY THE NEW PRESIDENT DOES WHILE PRESIDENT CLINTON AND HIS TOP AIDES HAVE LATELY EMPHASIZED THE URGENCY OF CUTTING THE FEDERAL BUDGET DEFICIT MR WATT DOUBTS THAT YOU'D SEE THE NEW MEMBERS OF CONGRESS MARCHING ON THE CAPITOL FOR THAT CAUSE ADDS MR WATT A CIVIL RIGHTS LAWYER IT'S NOT EASY TO SUPPORT JUSTICE AND STIMULUS AND SOCIAL PROGRAMS AND ALSO DEFICIT REDUCTION ALTHOUGH DEMOCRATIC LEADERS HAVE PLEDGED COOPERATION WITH PRESIDENT CLINTON AND MANY NEW MEMBERS RAN ON PLATFORMS CALLING FOR CUTTING THE DEFICIT THAT GOAL WILL SOON COLLIDE WITH CONGRESS'S AVERSION TO TAX INCREASES ITS ATTACHMENT TO EXISTING PROGRAMS AND PENTUP DEMAND BY DEMOCRATIC CONSTITUENCIES FOR NEW SPENDING SELLING THE PAINFUL MEDICINE OF DEFICIT REDUCTION WHICH MR CLINTON BEGAN TO DO IN HIS INAUGURAL ADDRESS BY CALLING FOR SACRIFICE WILL REQUIRE EVERY BIT OF THE PRESIDENT'S POLITICAL SKILLS CONGRESS WILL LEARN JUST HOW MUCH SACRIFICE MR CLINTON HAS IN MIND WHEN HE PRESENTS HIS FISCAL 1994 BUDGET PROPOSAL EXPECTED BY MIDMARCH IT PROMISES TO BE THE MOST SIGNIFICANT WHITE HOUSE BUDGET SINCE RONALD REAGAN'S FIRST ONE A DOZEN YEARS AGO WHICH SET A COURSE OF LOWER TAXES HIGHER SPENDING AND AS IT TURNED OUT RECORD DEFICITS LATER REAGAN AND BUSH ADMINISTRATION BUDGETS WERE GENERALLY PRONOUNCED DEAD ON ARRIVAL BY DEMOCRATS ON CAPITOL HILL THEN THE 1990 BUDGET DEAL PUT THE PROCESS ON AUTOMATIC PILOT BY LIMITING OVERALL SPENDING AND PREVENTING THE TRANSFER OF FUNDS AMONG THE BROAD SPENDING CATEGORIES DEFENSE INTERNATIONAL AID AND DOMESTIC BUT THOSE SOCALLED FIREWALLS COME DOWN FOR THE 1994 BUDGET AND THAT WILL REIGNITE FIERCE COMPETITION FOR INCREASINGLY SCARCE FUNDS AS DEFICIT REDUCTION RISES AS A PRIORITY FOR THE FIRST TIME IN A LONG TIME SAYS REP MARTIN OLAV SABO D MINN THE NEW CHAIRMAN OF THE HOUSE BUDGET COMMITTEE WHAT WE DO THIS YEAR IS REAL IN HIS ELECTION CAMPAIGN MR CLINTON PROMISED TO CUT THE DEFICIT IN HALF IN FOUR YEARS HE NOW SAYS HE AIMS TO CUT THE DEFICIT BY 145 BILLION INSTEAD BUT EVEN HIS OWN BUDGET ANALYSTS SAY THAT MAY BE OPTIMISTIC BUDGET DIRECTOR LEON PANETTA THE FORMER HOUSE BUDGET COMMITTEE CHAIRMAN SAYS THE PLAN WILL INCLUDE 2 OF SPENDING CUTS FOR EVERY 1 IN TAX INCREASES THE FORMER WILL FORCE LAWMAKERS TO SEEK DEEPER CUTS IN DEFENSE RESTRAIN THE BURGEONING ENTITLEMENT PROGRAMS OF MEDICARE AND MEDICAID AND ACCORDING TO MR CLINTON PERHAPS DEFER SOME OF HIS PROMISED NEW SPENDING PROGRAMS THE LATTER WILL MEAN HIGHER INCOME TAXES ON THE WEALTHY AND PROBABLY SOME TYPE OF BROADBASED CONSUMPTION TAX BUT FROM THE LIBERALS WHO DOMINATE THE HOUSE DEMOCRATIC CAUCUS AND WHO ELEVATED MR SABO TO THE BUDGET CHAIRMANSHIP THIS MONTH THE PRESIDENT FACES PRESSURE TO REDEEM HIS PLEDGE TO RETOOL THE ECONOMY BY INCREASING GOVERNMENT INVESTMENT IF HE YIELDS TOO MUCH TO THIS PRESSURE THOUGH MR CLINTON RISKS HIS NEW DEMOCRAT IMAGE AND DEFECTIONS OF CONSERVATIVE DEMOCRATS WHO GAVE MR SABO'S DEFICITFIGHTING RIVAL REP JOHN SPRATT OF SOUTH CAROLINA A SURPRISING 43 OF THE VOTE IN THE DEMOCRATIC CAUCUS IN THE SENATE MR CLINTON'S DECISIONS ARE LIKELY TO DETERMINE WHETHER BUDGET COMMITTEE CHAIRMAN JAMES SASSER D TENN FORGES A BUDGET RESOLUTION FROM DEMOCRATS ALONE OR SEEKS BIPARTISAN BACKING I DON'T BELIEVE YOU CAN FIX THE DEFICIT OF THE UNITED STATES WITH JUST DEMOCRATIC SUPPORT WARNS SEN PETE DOMENICI R NM THE GOP'S POINT MAN ON THE ISSUE AS THEIR RANKING MEMBER ON THE BUDGET COMMITTEE REPUBLICANS HAVE THEIR OWN POLITICAL CHOICES TO MAKE BOTH MR DOMENICI WHO THIS WEEK URGED MR CLINTON TO THINK BOLD AND BIG ABOUT A SHIFT TO CONSUMPTION TAXES AND SENATE MINORITY LEADER ROBERT DOLE R KAN HAIL FROM THE BUDGETBALANCING WING OF THE GOP BUT HOUSE MINORITY WHIP NEWT GINGRICH R GA WHO ONCE LED THE OPPOSITION TO A DEFICITREDUCTION PLAN CRAFTED BY A GOP PRESIDENT GEORGE BUSH IS ALREADY BERATING THE ADMINISTRATION FOR CONSIDERING CONSUMPTION TAXES ANOTHER POTENTIAL OBSTACLE TO CUTTING THE DEFICIT SHARPLY IS SENATE APPROPRIATIONS CHAIRMAN ROBERT BYRD D WVA A FORMIDABLE DEFENDER OF CONGRESSIONAL SPENDING MOREOVER NEITHER MR SASSER NOR MR SABO IS AN ARDENT DEFICIT FIGHTER IN THE MOLD OF MR PANETTA BOTH CHAIRMEN PRAISED THE NEW PRESIDENT'S DECISION TO PRESERVE FLEXIBLE DEFICIT TARGETS AS ALLOWED UNDER THE 1990 BUDGET LAW A MOVE REPUBLICANS CRITICIZED AS A BAD SIGN FOR DEFICITCUTTING EFFORTS I HAVE A STRONG COMMITMENT TO DEFICIT REDUCTION BUT IT'S A MATTER OF DEGREES SAYS MR SASSER THE TENNESSEE SENATOR BACKS THE ADMINISTRATION'S GOAL OF STIMULATING THE ECONOMY AND WIDENING THE SHORTTERM DEFICIT WITH NEW SPENDING OF ABOUT 20 BILLION CONCEDING THAT THE IMPACT OF A PACKAGE THAT SMALL WOULD BE MORE COSMETIC THAN REAL MR SASSER INSISTS IT WOULD SEND A POWERFUL PSYCHOLOGICAL SIGNAL OF RECOVERY MR DOMENICI WARNS THAT REPUBLICANS WON'T EMBRACE A STIMULUS PACKAGE OR INDIVIDUAL TAX INCREASES UNLESS THEY ARE TIED TO A MAJOR LONGTERM DEFICIT REDUCTION PLAN HE SAYS HE HASN'T BEEN CONSULTED BY THE NEW ADMINISTRATION BUT MR SASSER SAYS HE HASN'T BEEN EITHER SHUNNING REPUBLICANS CARRIES RISKS FOR MR CLINTON SHARED POLITICAL ACCOUNTABILITY HAS BEEN INTEGRAL TO PAST DEFICITREDUCTION EFFORTS NOW THE GOP LACKING CONTROL OF THE WHITE HOUSE OR EITHER HOUSE OF CONGRESS IS FREE TO INDULGE ITS PARTISAN INSTINCTS AND DEMOCRATS WHO MUST DEFEND 22 OF THE 34 SENATE SEATS AT STAKE IN THE 1994 ELECTIONS WON'T BE EAGER TO TACKLE THE DEFICIT ALONE ON TO KEEP THE PRESSURE ON SOME 20 SENATE REPUBLICANS LED BY CONNIE MACK OF FLORIDA PACKAGED FIVE PROPOSALS THAT THE NEW PRESIDENT ENDORSED IN HIS CAMPAIGN INCLUDING A LINEITEM VETO A CAPITALGAINS TAX CUT AND ENTERPRISE ZONES AND INTRODUCED THEM AS THE CLINTONREPUBLICAN ECONOMIC PLAN SEN PHIL GRAMM R TEXAS WHO MAY RUN AGAINST MR CLINTON IN 1996 HAS LAUNCHED A NEW CAMPAIGN FOR A BALANCEDBUDGET CONSTITUTIONAL AMENDMENT MR GRAMM PLANS TO ATTACH THE PROPOSED AMENDMENT TO LEGISLATION RAISING THE FEDERAL DEBT LIMIT WHICH CONGRESS WILL HAVE TO DO SOMETIME IN MARCH OR APRIL BECAUSE THE DEBT LIMIT VOTE IS BOTH POLITICALLY DIFFICULT AND NECESSARY TO KEEP GOVERNMENT FUNCTIONING IT MAY SERVE TO PUSH THE ADMINISTRATION AND CONGRESS TOWARD A BUDGET COMPROMISE AMONG THE BIGGEST UNCERTAINTIES IS WHETHER LAWMAKERS CAN MUSTER THE POLITICAL WILL TO RESTRAIN SIGNIFICANTLY SPIRALING ENTITLEMENT COSTS MR CLINTON INSISTS THE SOLUTION LIES IN HIS FORTHCOMING HEALTHCARE REFORM PLAN THE PROBLEM IS THAT THE PRESIDENT'S OWN ADVISERS ACKNOWLEDGE THAT ANY PLAUSIBLE HEALTH REFORM PLAN WILL COST MONEY IN THE NEAR TERM THE TOUGH CHOICES MAY COME AS A RUDE SURPRISE FOR THE FIRSTTERM LAWMAKERS WHO SPENT 1992 TELLING VOTERS THEY WOULD REVIVE THE ECONOMY AND CLEAN UP THE MESS IN WASHINGTON DESPITE ALL THE TALK OF DEFICIT REDUCTION DURING THE CAMPAIGN SAYS STEPHEN BELL A SALOMON BROTHERS INC ANALYST AND FORMER REPUBLICAN STAFF DIRECTOR OF THE SENATE BUDGET COMMITTEE MANY NEW MEMBERS HAVE NO IDEA OF THE MAGNITUDE OF THE FISCAL TRAIN WRECK INDEED THE 1992 CANDIDATES WHO SPOKE MOST ARDENTLY ABOUT CUTTING THE DEFICIT DIDN'T FARE SO WELL SOME 97 HOUSE AND SENATE CANDIDATES SIGNED THE SOCALLED LEAD OR LEAVE PLEDGE TO LEAVE OFFICE IN 1996 IF THE DEFICIT HADN'T BEEN CUT IN HALF BY THEN ONLY 16 OF THEM WON 9301270159 930127 LETTERS TO THE EDITOR TSK THOSE AUDACIOUS LIT PROFESSORS ROGER KIMBALL IS BESIDE HIMSELF BECAUSE CERTAIN LITERATURE PROFESSORS TODAY HAVE NEGATIVE THINGS TO SAY ABOUT AMERICAN SOCIETY INCLUDING ITS ATTITUDES TOWARD SEXUALITY HETEROTEXTUALITY' AND OTHER LITERARY MATTERS EDITORIAL PAGE DEC 31 AT THE DECEMBER MODERN LANGUAGE ASSOCIATION CONVENTION IN NEW YORK ACCORDING TO MR KIMBALL SOME OF THESE PROFESSORS ACTUALLY GAVE PAPERS ON EXOTIC SEXUAL SUBJECTS AND ONE OF THEM DENOUNCED THE AMERICAN REGIME OF COMPULSORY HETEROSEXUALITY OTHERS AT THE CONVENTION CRITICIZED WESTERN COLONIALISM AND IMPERIALISM MR KIMBALL IMPLIES THAT PARENTS TRUSTEES AND ALUMNI SHOULD WITHDRAW FINANCIAL SUPPORT FROM UNIVERSITIES THAT HARBOR SUCH THOUGHT CRIMINALS AS A PROFESSOR WHO ATTENDED THE CONVENTION AND WHO HAS BEEN IN THE MIDDLE OF THE ISSUES MR KIMBALL IS CONCERNED ABOUT I TOO WORRY ABOUT THE STRIDENCY EXAGGERATION AND JUST PLAIN SILLINESS THAT CHARACTERIZE SOME VERSIONS OF THE NEW TRENDS IN THE HUMANITIES ON THE WHOLE HOWEVER I AM ENCOURAGED RATHER THAN ENRAGED BY THE CHANGES I SEE ESPECIALLY WHEN I RECALL THE INTELLECTUAL TORPOR AND TIMIDITY THAT SO OFTEN CHARACTERIZED THE ACADEMY BEFORE THESE TRENDS AROSE NOTWITHSTANDING THEIR EXCESSES MULTICULTURALISM ETHNIC AND GAY STUDIES AND FEMINISM HAVE BEEN RESPONSIBLE FOR MOST OF THE INTELLECTUAL ADVANCES AND MUCH OF THE BEST TEACHING IN THE HUMANITIES OVER THE PAST TWO DECADES IT IS ABOUT TIME THE TABOO WAS LIFTED ON SCHOLARLY RECOGNITION OF HOMOSEXUALITY GIVEN THE PERVASIVENESS OF THIS TOPIC FROM PLATO'S PHAEDRUS TO SHAKESPEARE'S SONNETS TO PROUST'S NOVELS IT IS ALSO TIME THAT THE AMERICAN ASSUMPTION OF COMPULSORY HETEROSEXUALITY BE SUBJECTED TO SCRUTINY IF WE HOPE TO SURVIVE OUR CURRENT CONFLICTS OVER GAY PEOPLE IN THE MILITARY AND THE WORKPLACE AND IF THE ARTS THEMSELVES DEAL CENTRALLY IN PROVOCATIVE AND EVEN OFFENSIVE IDEAS AS THEY ALWAYS HAVE THEN WHY SHOULD TEACHERS OF THE ARTS HAVE TO AVOID SUCH IDEAS CONSERVATIVES LIKE MR KIMBALL TELL US THAT WESTERN CULTURE IS PECULIARLY DISTINGUISHED BY ITS WILLINGNESS TO CRITICIZE ITSELF BUT WHEN PROFESSORS SEEK TO CARRY ON AND EXTEND THIS TRADITION OF SELFCRITICISM THEY ARE MET WITH OUTRAGE THE WEST IT SEEMS ALREADY STANDS FOR SELFCRITICISM SO WILL THE CRITICS PLEASE SHUT UP CRITIQUES OF POLITICS SEXUALITY AND OTHER CONTROVERSIAL SUBJECTS ARE AS LEGITIMATE FOR EDUCATORS AS THEY ARE FOR ARTISTS OR EDITORIALISTS PROVIDED THEY ARE PRESENTED IN A SPIRIT OF OPEN DISCUSSION RATHER THAN INDOCTRINATION MR KIMBALL LEAPS ILLOGICALLY TO THE IMPLIED CONCLUSION THAT SINCE PROFESSORS EXPRESS VIEWS ON THESE SUBJECTS AT PROFESSIONAL CONFERENCES WE CAN THEREFORE ASSUME THEY ARE FORCING THESE VIEWS DOWN THE THROATS OF HELPLESS STUDENTS AND COLLEAGUES THE INDOCTRINATION OF STUDENTS IS INDEED DEPLORABLE BUT IN MY EXPERIENCE IT IS THE EXCEPTION NOT THE RULE IN ANY CASE SUCH CHARGES SHOULD BE BASED ON INVESTIGATION AND EVIDENCE NOT WILD AND SWEEPING INFERENCES MR KIMBALL BLURS THE CRUCIAL DISTINCTION BETWEEN PRESENTING CONTROVERSIAL THEORIES IN THE CLASSROOM AND IMPOSING THEM FORCIBLY ON STUDENTS MR KIMBALL'S EXCELLENT LOOK AT THE DECLINE OF INTELLECTUAL LIFE AMONG THE HUMANISTS ACCURATELY PORTRAYS THE IDEOLOGICAL INFECTION IN THE ACADEMY THE METHODOLOGY BY WHICH THE HETEROTEXTUALITY CROWD AND THEIR CONFRERES WEAR DOWN AND EVENTUALLY REPLACE THOSE WHO ARE SIMPLY INTERESTED IN IMPARTING KNOWLEDGE IS ALSO INSTRUCTIVE IT IS A TRUISM TO RECALL THAT UNIVERSITY FIGHTS ARE SO PETTY BECAUSE THE STAKES ARE SO SMALL AND THE METHODS EMPLOYED ARE SMALLMINDED AS WELL FOR EXAMPLE THE MANIPULATION OF A CHAIRMAN OR DEAN INTO RATIFYING AN ANONYMOUS AND OFTEN FICTITIOUS COMPLAINT BY PUTTING IT IN WRITING IS A FAVORITE ALONG WITH COUNTERSCHEDULING REQUIRED CLASSES IN ORDER TO REDUCE THE OPPONENT'S CLASS SIZE OTHER POPULAR AND RELATIVELY INVISIBLE PLOYS INCLUDE BOOSTING THE WORK OF FRIENDS WHILE IGNORING THAT OF THE ENEMY REFUSING COMMITTEE APPOINTMENTS AND REPEATEDLY CHANGING TEACHING ASSIGNMENTS WHICH RESULTS IN LESS TIME FOR RESEARCH AND GRANT WRITING ALL THIS IS DONE OF COURSE IN AN ATMOSPHERE OF UTMOST CORDIALITY WHERE THE BOWS AND FLOURISHES OF ACADEMIC PROPRIETY BELIE THEIR INTENT UNTIL THE EDUCATOR HAS LEFT THE DEPARTMENT THE DIVISION THE SCHOOL OR THE COLLEGE IN DISGUST TO BE REPLACED BY YET ANOTHER HETEROTEXTUAL POLEMICIST IN THE TENURE TRACK FACULTY IN REGARD TO MR KIMBALL'S ACCOUNT OF A TALK GIVEN BY MIT PROF DAVID HALPERIN AS A FORMER STUDENT OF PROF HALPERIN'S I TAKE ISSUE WITH MR KIMBALL'S RHETORICAL ASIDE I WONDER IF THE PARENTS OF MIT STUDENTS THINK THEY ARE GETTING VALUE FOR THEIR TUITION MONEY MR KIMBALL MAKES A LEAP BY ASSUMING THAT RADICAL SCHOLARSHIP AUTOMATICALLY TRANSLATES INTO RADICAL AND/OR BAD TEACHING I CAN ATTEST TO THE FACT THAT PROF HALPERIN IS A TERRIFIC TEACHER OF LITERATURE AND THE HUMANITIES A CLASSICIST BY TRAINING HE KNOWS THE CANON OF WESTERN LITERATURE THOROUGHLY AND TEACHES IT WITH ENTHUSIASM AND WITH A HIGHLY SYMPATHETIC UNDERSTANDING HE IS A THOUGHTPROVOKING DEMANDING AND RIGOROUS TEACHER OF THE HUMANITIES THE GLORIES OF WESTERN CIVILIZATION AND THE EDUCATION OF THE COMPETENT MINDS AT MIT ARE IN NO DANGER FROM PROF HALPERIN I'D BET THAT MOST OF HIS STUDENTS CURRENT AND FORMER FEEL THEIR TUITION DOLLARS WERE WELL SPENT ON A CLASS TAUGHT BY HIM MAKE NO MISTAKE PROF HALPERIN IS POLITICALLY RADICAL AND INCREASINGLY OUTSPOKEN HIS SCHOLARSHIP REFLECTS THAT BENT BUT SURELY THAT DOESN'T MEAN HE'S UNSUITABLE AS A TEACHER MR KIMBALL IS CERTAINLY FREE TO DISAGREE WITH PROF HALPERIN'S ANALYSIS OF THE MOVIE SHANE AND TO FIND FAULT WITH THE STATE OF THE ART IN HUMANISTIC SCHOLARSHIP I SHARE MANY OF HIS VIEWS ON THE LATTER BUT TO SUGGEST THAT RADICAL FIELDS OF INQUIRY DISCREDIT A SCHOLAR'S ABILITY TO TEACH AN OFTEN ALTOGETHER DIFFERENT PURSUIT MAKES THE CRITICISM PERSONAL AND MEANSPIRITED AND THEREFORE INAPPROPRIATE AS THE AUTHOR OF IN AND AGAINST NATURE GOETHE ON HOMOSEXUALITY AND HETEROTEXTUALITY I FEEL MR KIMBALL SHOULD HAVE MENTIONED MY NAME IN HIS MLABASHING ARTICLE ESPECIALLY SINCE ITS HEADLINE DRAWS ON THE TITLE OF MY TALK AFTER ALL WITHOUT PEOPLE LIKE ME WHAT WOULD PEOPLE LIKE HIM HAVE TO WRITE ABOUT MR KIMBALL OBVIOUSLY IS ONLY ABLE TO MAKE FUN OF RATHER THAN EXPLAIN CURRENT DEVELOPMENTS IN MODERN LITERARY THEORY EVEN IF HIS REMARKS HAVE A CERTAIN HUMOR THE JOURNAL IS THE WRONG PLACE FOR THEM ITS READERS HAVING GONE INTO BUSINESS AND BANKING WOULD PROBABLY FIND ANYTHING LITERATURE PROFESSORS DID RIDICULOUS AND IRRELEVANT MR KIMBALL SIMPLY FEEDS THEM WHAT THEY THINK THEY ALREADY KNOW HOW MUCH MORE ELEGANTLY IRONIC IS THE SOLUTION THAT KLAUS MANN THE INCIDENTALLY HOMOSEXUAL SON OF THE INCIDENTALLY HOMOSEXUAL THOMAS MANN ENVISIONS IN HIS NOVEL MEPHISTO FOR IN THOSE DAYS FINANCIAL PAPERS ENJOYED TREATING THEMSELVES TO THE JOKE OF HAVING A MARXIST COLUMNIST IT ADDED A PUNGENT NOTE AND COULD NOT SERIOUSLY DISTURB ANYONE THE SERIOUS SIDE OF LIFE PREVAILED IN THE COMMERCIAL SECTION BUT IN THE PAGES WHERE NO SERIOUS BUSINESSMAN EVER CAST AN EYE A RED POPE COULD BE ALLOWED TO LET OFF STEAM A TRULY CLASSY FINANCIAL NEWSPAPER WOULD PUBLISH LEFTWING CRITICISM OF THE ARTS AND LET ROGER KIMBALL PUBLISH HIS RIGHTWING DIATRIBES IN MORE PROGRESSIVE VENUES LEFTIST JOURNALIST ALEX COCKBURN WROTE A REGULAR COLUMN ON THE JOURNAL'S OPED PAGE FOR 10 YEARS AND STILL CONTRIBUTES OCCASIONAL ARTICLES TO THE EDITORIAL PAGE ED 9301270158 930127 WHO'S NEWS JOHNSON & JOHNSON JOHNSON & JOHNSON NEW BRUNSWICK NJ J ANDREA ALSTRUP 47 YEARS OLD WAS NAMED VICE PRESIDENT OF ADVERTISING FOR THE US MARKET AT THIS MAJOR HEALTHCAREPRODUCTS CONCERN MS ALSTRUP WHO HAD BEEN MEDIA DIRECTOR SUCCEEDS GF TYRRELL 64 WHO CONTINUES AS VICE PRESIDENT AND IS NOW RESPONSIBLE FOR ADVERTISING WORLDWIDE 9301270157 930127 CORPORATE FOCUS SILICON GRAPHICS AIMS TO BE SUPERCOMPUTER CONTRARIAN NEW MACHINE LINE OF WORKSTATIONS ARE SEEN DOUBLING REVENUE TO 2 BILLION BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL SILICON GRAPHICS INC'S POWERFUL WORKSTATION COMPUTERS ARE A BIG HIT WITH STEVEN SPIELBERG WHO IS USING THEIR GRAPHICS CAPABILITY TO BREATHE LIFE INTO DINOSAURS FOR THE MOVIE JURASSIC PARK IN REAL LIFE THE MOUNTAIN VIEW CALIF COMPUTER MAKER IS MAKING A BOLD MOVE INTO A MARKET THAT HAS LED TO FINANCIAL EXTINCTION FOR SOME OTHER COMPANIES WHO BECAME DINOSAURS IN A FASTMOVING HIGHTECH WORLD THE SUPERCOMPUTER MARKET THE COMPANY DISCLOSED YESTERDAY THAT IT IS CREATING A SUPERCOMPUTER IT HOPES WILL WREAK HAVOC WITH COMPETITORS EDWARD MCCRACKEN SILICON GRAPHICS' CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT HE EXPECTS THE NEW MACHINE AND THE COMPANY'S LINE OF NEW WORKSTATIONS TO BOLSTER ITS REVENUE TO 2 BILLION IN TWO OR THREE YEARS FROM A RUN RATE OF ABOUT 1 BILLION NOW HE ACKNOWLEDGES THAT THE BOLD MOVE INTO THE SUPERCOMPUTER MARKET IS REALLY A CONTRARIAN POINT OF VIEW BUT MR MCCRACKEN SEES THE STRATEGY LEADING TO BIG PAYOFFS BECOMING THE MARKET'S TOP SUPERCOMPUTER MAKER AND DOUBLING TOTAL REVENUE IN A SHORT PERIOD WE BELIEVE THIS SUPERCOMPUTER COULD BOOST US TO HAVE THE HIGHEST REVENUE IN THE SUPERCOMPUTER MARKET HE SAID THAT MARKET IS STRUGGLING AS LEADING MANUFACTURERS SUCH AS CRAY RESEARCH INTERNATIONAL BUSINESS MACHINES CORP AND CONVEX COMPUTER CORP TRY TO FIND NEW APPLICATIONS FOR THE MACHINES THAT JUSTIFY THEIR HIGH PRICE A DATAQUEST SURVEY SHOWS THAT THE SUPERCOMPUTER SEGMENT SHRANK BY 54 LAST YEAR TO 191 BILLION TWO DAYS AGO STEVE S CHEN A PROMINENT SUPERCOMPUTER DESIGNER SAID HIS FLEDGLING COMPANY SUPERCOMPUTER SYSTEMS INC IS LIKELY TO GO OUT OF BUSINESS BECAUSE IBM WITHDREW FINANCIAL SUPPORT MR MCCRACKEN SAID THE MOVE INTO SUPERCOMPUTERS IS THE COMPANY'S THIRD MAJOR STRATEGY SHIFT SINCE IT WAS FOUNDED IN 1981 THE FIRST TWO DECISIONS A MOVE INTO BUILDING GRAPHICS WORKSTATIONS RATHER THAN BEING JUST A MANUFACTURER OF DUMB TERMINALS AND A BROADENING OF THE COMPANY'S PRODUCT LINE TO INCLUDE LOWER PRICE GRAPHICS MACHINES FUELED SPECTACULAR GROWTH THROUGHOUT THE 1980S WHILE SUN MICROSYSTEMS INC AND HEWLETTPACKARD CO HAVE BEEN SLUGGING IT OUT FOR THE COMMERCIAL WORKSTATION MARKET SILICON GRAPHICS HAS CARVED OUT A MARKET NICHE BY CATERING PRIMARILY TO ENGINEERS SCIENTISTS AND ANIMATORS WHO ARE LOOKING TO HIGHPERFORMANCE MACHINES TO CREATE THREEDIMENSIONAL GRAPHICS BY OFFERING SUCH SPECIALIZED MACHINES THE COMPANY'S REVENUE HAS GROWN FROM 1665 MILLION TO 8666 MILLION DURING A FIVEYEAR PERIOD SILICON GRAPHICS IS THE FIFTH LARGEST WORKSTATION MAKER IN THE WORLD ACCORDING TO A STUDY BY DATAQUEST INC SAN JOSE CALIF THERE IS STILL ROOM FOR ROBUST GROWTH IN THAT SPECIALIZED MARKET AS MUCH AS 30 A YEAR SOME INDUSTRY ANALYSTS SAY BUT BRANCHING OUT TO SUPERCOMPUTER USERS BROADENS SILICON GRAPHICS' APPEAL EVEN MORE SILICON GRAPHICS' MOST EXPENSIVE WORKSTATION SYSTEMS ARE ALREADY CONSIDERED SUPERCOMPUTERS BY SOME ANALYSTS THE SALES FORCE HAS ALREADY BEEN SELLING INTO THOSE ACCOUNTS FOR SOME TIME SAID NANCY BATTEY AN ANALYST WITH INTERNATIONAL DATA CORP SILICON GRAPHICS HOPES TO EXPAND THE MARKET FOR SUPERCOMPUTERS BY BRINGING PRICES DOWN TO UNDER A MILLION DOLLARS FOR WHAT ARE TYPICALLY MULTIMILLION DOLLAR PURCHASES IN THIS WAY SILICON GRAPHICS SEES ITS TARGET MARKET EXPANDING BY APPEALING TO USERS WHO IN THE PAST COULDN'T AFFORD THEM SUCH AS SMALLER ENGINEERING FIRMS AND ACADEMICS THAT EXPANDED BASE OF USERS WOULD APPEAL TO SOFTWARE MAKERS WHO HAVE BEEN HESITANT IN THE PAST TO CREATE SOFTWARE FOR WHAT WOULD OTHERWISE BE A NARROW TECHNICAL MARKET SILICON GRAPHICS' NEW COMPUTER CALLED THE POWER CHALLENGE LINKS HIGHSPEED MULTIPLE MICROPROCESSORS KNOWN AS RISC CHIPS OR REDUCEDINSTRUCTIONSETCOMPUTER CHIPS THE COMPANY SAID THE POWER CHALLENGE IS THE FIRST SUPERCOMPUTER TO USE RISC CHIPS THEY WILL HELP PRODUCE THE COMPUTING POWER OF TRADITIONAL SUPERCOMPUTERS WHICH TYPICALLY COST SEVERAL MILLIONS OF DOLLARS BUT SILICON GRAPHICS SAYS ITS COMPUTERS WILL SELL FOR 120000 TO 900000 DEPENDING ON POWER AND FEATURES NOT ONLY WILL THE SELLING PRICE BE LOWER BUT MAINTENANCE AND SUPPORT COSTS WILL ALSO BE LOWER IN SOME CASES UP TO SEVEN TIMES CHEAPER THAN STANDARD SUPERCOMPUTERS A COMPANY SPOKESMAN SAID COMPETITORS SAY THAT IT'S HARD TO COMPARE COSTS WITHOUT KNOWING ABOUT SPECIFIC FEATURES BUT SEVERAL HURDLES REMAIN SILICON GRAPHICS' NEW SUPERCOMPUTER IS BASED ON A NEW MICROPROCESSOR WHICH ACTS AS THE COMPUTER'S BRAIN WITH UNSEEN GLITCHES AND PRODUCTION DELAYS TYPICAL WITH THE INTRODUCTION OF ANY NEW PROCESSOR WITH AN ANNOUNCED SHIPPING DATE STILL A YEAR AWAY COMPETITORS STILL HAVE TIME TO RESPOND WITH LOWER PRICE AND HIGHER PERFORMING MACHINES AND SOME CUSTOMERS CURRENTLY WORKING WITH PROPRIETARY COMPUTER SYSTEMS WILL FIND THAT SWITCHING TO A NEW SYSTEM SUCH AS A SILICON GRAPHICS COMPUTER MEANS FACING THE HIGH COSTS OF WRITING NEW SOFTWARE RETRAINING STAFF AND INSTALLING NEW EQUIPMENT FOR SILICON GRAPHICS' NEW COMPUTER LINE SOME RISK IS INVOLVED SAID RICHARD FICHERA PRESIDENT OF RM FICHERA ASSOCIATES A TECHNOLOGY CONSULTANT FAMILIAR WITH SILICON GRAPHICS' PLANS IT'S A VERY AGGRESSIVE DESIGN MR MCCRACKEN SAID THE REASON WHY THE COMPANY WAS ANNOUNCING THE NEW COMPUTER A YEAR AHEAD OF THE SHIPPING DATE WAS BECAUSE PROSPECTIVE BUYERS OF SUCH EQUIPMENT SUCH AS GOVERNMENT AGENCIES AND UNIVERSITIES NEED MONTHS TO PREPARE BUDGETS AND PLAN FOR EQUIPMENT ACQUISITIONS INTEL CORP A DOMINANT CHIP MAKER WHO ALSO HAS A HEALTHY SUPERCOMPUTER BUSINESS SEES A TOUGH TIME FOR ANY UPSTART ENTERING THE SUPERCOMPUTER MARKET SELLING SUPERCOMPUTERS TYPICALLY REQUIRES CLOSE WORKING RELATIONSHIPS BETWEEN CUSTOMERS AND MANUFACTURERS WHO MUST PROVIDE EXPERT SERVICE AND SUPPORT SAID MICHAEL BERNHARDT DIRECTOR OF MARKETING RELATIONS FOR INTEL'S SUPERCOMPUTER GROUP IT'S NOT LIKE GOING DOWN TO THE CORNER STORE AND BUYING OFFTHESHELF SOFTWARE HE SAID SILICON GRAPHICS IS ALSO PURSUING A NEW MULTIPROCESSOR STRATEGY IN WORKSTATIONS ON MONDAY IT ANNOUNCED ITS NEW LINE OF ONYX MACHINES UP TO 10 TIMES MORE POWERFUL THAN ANY OF ITS PREVIOUS WORKSTATIONS THE COMPANY ACHIEVED THE TECHNICAL LEAP BY STRINGING TOGETHER TWO OR MORE MICROPROCESSORS THE NEW WORKSTATIONS ARE PRICED FROM 115000 TO 645000 DURING THE PAST SEVERAL QUARTERS SILICON GRAPHICS HAS BEEN ABLE TO PULL ITSELF UP FROM A COSTLY ACQUISITION OF FINANCIALLY TROUBLED MIPS COMPUTER SYSTEMS INC SUPPLIER OF THE MICROPROCESSORS USED IN ITS COMPUTERS THAT ACQUISITION DRAGGED DOWN EARNINGS RESULTING IN A 1992 FISCAL FOURTHQUARTER NET LOSS OF 1089 MILLION OR 188 A SHARE ON REVENUE OF 2398 MILLION BUT THE MOVE ENABLED SILICON GRAPHICS TO GAIN CONTROL OF A CORE TECHNOLOGY AND HAS RESULTED IN THE DEVELOPMENT OF THE TFP CHIPS PLANNED FOR THE NEW SUPERCOMPUTERS THE COMPANY'S STOCK HAS MORE THAN DOUBLED IN THE PAST YEAR AND IS TRADING NEAR ITS 52WEEK HIGH LATE YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING SILICON GRAPHICS SHARES WERE QUOTED AT 32375 UP 125 CENTS A SHARE JOHN LEVINSON AN ANALYST WITH GOLDMAN SACHS ESTIMATES THAT FOR THE FISCAL THIRD QUARTER ENDING MARCH 31 SILICON GRAPHICS WILL POST NET INCOME OF 21 MILLION OR 29 CENTS A SHARE ON A 35 RISE IN REVENUE TO 280 MILLION FOR THE YEAR ENDING JUNE 30 MR LEVINSON ESTIMATES NET INCOME OF 89 MILLION OR 123 A SHARE ON A 29 INCREASE IN REVENUE TO 112 BILLION MR LEVINSON SEES GROWTH AHEAD FOR SILICON GRAPHICS AS LONG AS IT KEEPS FOCUSED CONTINUING TO PURSUE THE SCIENTIFIC TECHNICAL AND ANIMATION MARKETS USING SILICON GRAPHICS COMPUTERS THERE ARE SOME PEOPLE WE MIGHT CALL THE LUNATIC FRINGE WHO ARE GOING TO BE DOING SOME TERRIBLY EXCITING THINGS AT THE CREATIVE EDGE 9301270156 930127 LOCKHEED CORP DEBT TOTALING 17 BILLION DOWNGRADED BY S&P NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ABOUT 17 BILLION OF LOCKHEED CORP'S DEBT REFLECTING THE COMPANY'S PROPOSED 152 BILLION ACQUISITION OF GENERAL DYNAMICS CORP'S FIGHTER PLANE UNIT THE CREDITRATING AGENCY SAID THAT DESPITE THE STRONG CASHGENERATING PROSPECTS OF THE GENERAL DYNAMICS OPERATIONS LOCKHEED'S WILLINGESS TO BOOST ITS DEBT FOR THE ACQUISITION ILLUSTRATES A MORE AGGRESSIVE FINANCIAL PHILOSOPHY THAN ANTICIPATED PRO FORMA FOR THE TRANSACTION DEBTTOCAPITAL WILL RISE TO THE MID50 RANGE FROM ROUGHLY 40 S&P NOTED LOCKHEED CHAIRMAN DANIEL TELLEP PREVIOUSLY HAS SAID HE EXPECTS DEBTTOCAPITAL TO RETURN TO A 33 LEVEL WITHIN THREE YEARS LOWERED WERE S&P'S RATINGS ON LOCKHEED'S SENIOR DEBT TO SINGLEAMINUS FROM SINGLEA AND COMMERCIAL PAPER TO A2 FROM A1 S&P REMOVED ITS RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED DEC 14 LOCKHEED DIDN'T HAVE ANY IMMEDIATE COMMENT ON THE DOWNGRADE DESPITE THE DOWNGRADE S&P SAID LOCKHEED IS VERY WELL POSITIONED AND THAT THE ACQUIRED OPERATIONS GENERATING 75 OF REVENUES FROM THE MATURE F16 FIGHTER PROGRAM ADD TO LOCKHEED'S COMPETITIVE POSITION BY STRENGTHENING AIRCRAFT ASSEMBLY EXPERTISE AND EXPANDING INTERNATIONAL ACTIVITIES THE ACQUISITION WILL ALSO REDUCE OVERALL COSTS ON THE US AIR FORCE'S NEXT GENERATION FIGHTER THE F22 MAKING THAT LOCKHEEDLED PROGRAM MORE AFFORDABLE AS MILITARY BUDGETS COME UNDER INCREASED PRESSURE S&P NOTED SEPARATELY LOCKHEED SAID IT FINALIZED A VENTURE ANNOUNCED LAST MONTH WITH KHRUNICHEV ENTERPRISE TO MARKET THE RUSSIANBUILT PROTON ROCKET FOR COMMERCIAL SATELLITE LAUNCHES BOTH LOCKHEED AND KHRUNICHEV HAVE PLEDGED TO ACCELERATE THE PACE AND MAINTAIN THE FOCUS OF OUR EFFORTS TO PROCEED TO OPENING SPACE MORE FULLY TO COMMERCIAL USERS THROUGH THE WORLDWIDE MARKETING OF THE PROTON ROCKET MR TELLEP SAID 9301270155 930127 NATIONAL SANITARY ACQUIRES FIRM CINCINNATI NATIONAL SANITARY SUPPLY CO SAID IT ACQUIRED TIDY TOM'S INC A PRIVATELY HELD SANITARY MAINTENANCE DISTRIBUTOR BASED IN ANN ARBOR MICH TERMS OF THE TRANSACTION WEREN'T DISCLOSED NATIONAL SANITARY A DISTRIBUTOR OF SANITARY MAINTENANCE SUPPLIES SAID TIDY TOM'S HAS ANNUAL SALES OF ABOUT 2 MILLION AND THAT THE ACQUISITION WILL EXPAND ITS PRESENCE IN MICHIGAN 9301270154 930127 AVERAGE YIELDS ON CDS EASED IN LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE COMPANIES EDGED DOWNWARD IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 286 FROM 288 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED DOWN TO 524 FROM 530 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 315 FROM 320 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 551 FROM 567 ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 289 FROM 292 BANXQUOTE SAID ON FIVEYEAR JUMBOS THE AVERAGE DECLINED TO 544 FROM 552 ACCORDING TO BANXQUOTE 9301270153 930127 INTERNATIONAL PORSCHE SAYS LOSS FOR HALF IS DOUBLE LAST YEAR'S TOTAL BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY PORSCHE AG ESTIMATED ITS GROUP LOSS IN THE CURRENT FISCAL FIRST HALF ALONE WILL BE NEARLY DOUBLE THE LOSS IT POSTED FOR THE ENTIRE PREVIOUS FISCAL YEAR ENDED JULY 31 LAST YEAR THE 62YEAROLD COMPANY SWUNG TO A DEFICIT FOR THE FIRST TIME IN ITS HISTORY SHARES IN THE STRUGGLING GERMAN SPORTS CAR MAKER COLLAPSED AFTER THE ANNOUNCEMENT PORSCHE SHARES PLUNGED 24 MARKS OR 52 TO END AT 440 MARKS 279 THE FIRSTHALF LOSSES ARE DEEPER THAN EXPECTED AND TOOK MANY BY SURPRISE SAID JUERGEN PIEPER AUTO SECTOR ANALYST AT DB RESEARCH GMBH IN FRANKFURT A UNIT OF DEUTSCHE BANK AG SOME ANALYSTS DOUBTED CHAIRMAN WENDELIN WIEDEKING WHEN HE SAID HE WAS CONFIDENT THE GROUP COULD ENGINEER A RECOVERY AND MUSTER A BREAKEVEN RESULT IN THE 19931994 FISCAL YEAR FROM THESE NUMBERS I WOULD SAY A BREAKEVEN RESULT LOOKS IMPROBABLE MR PIEPER SAID PORSCHE IS BASICALLY HEALTHY DESPITE THE NEGATIVE EARNINGS MR WIEDEKING SAID AT A NEWS BRIEFING IN THE PAST TWO YEARS THE COMPANY HAS SHED A QUARTER OF ITS WORK FORCE CUT TWO OF THE FIVE LAYERS OF ITS WHITECOLLAR STAFF AND DECENTRALIZED ITS OPERATIONS TO MAKE PRODUCTION CHEAPER AND LEANER THE EXECUTIVE SAID WITH COSTCUTTING MEASURES THAT ARE RADICAL IN COMPARISION WITH OTHER GERMAN AUTOMOBILE MAKERS WE AREN'T TOTALLY DEPENDENT ON INCREASING VEHICLE SALES TO RETURN TO PROFITABILITY CHIEF FINANCIAL OFFICER WALTER GNAUERT SAID IN THE SIX MONTHS THROUGH JANUARY THE GROUP SWUNG TO AN ESTIMATED LOSS OF 120 MILLION MARKS 761 MILLION COMPARED WITH A TWO MILLION MARK PROFIT IN THE FIRST HALF OF THE PREVIOUS FISCAL YEAR HE SAID FOR ALL OF FISCAL 1992 PORSCHE HAD A LOSS OF 658 MILLION MARKS OFFICIALS DECLINED TO MAKE A DIVIDEND FORECAST AFTER SLASHING THE 1992 PAYOUT ON PREFERRED SHARES 75 TO 25 MARKS FROM 10 MARKS IN THE 1991 FISCAL YEAR PERSHARE EARNINGS FOR FISCAL 1992 SWUNG TO A LOSS OF 12 MARKS FROM A PERSHARE PROFIT OF 23 MARKS THE COMPANY IS BRACED FOR A DROP IN GROUP SALES TO 17 BILLION TO 19 BILLION MARKS 108 BILLION TO 12 BILLION IN THE CURRENT YEAR FROM 27 BILLION MARKS IN FISCAL 1992 THE SALES DECLINE IS ALSO DEEPER THAN MANY HAD EXPECTED IN THE FIRST SIX MONTHS ALONE SALES FELL TO 800 MILLION MARKS FROM 125 BILLION MARKS IN THE FIRST HALF OF FISCAL 1991 MR WIEDEKING SAID THE COMPANY HINTED THAT THE SECONDHALF LOSS MIGHT NOT BE AS DEEP AS THE FIRST HALF BUT WASN'T CONFIDENT ENOUGH TO GIVE A FORECAST ANALYSTS LAUDED THIS WEEK'S ANNOUNCEMENT THAT TWO SENIOR MEMBERS OF THE FOUNDING PORSCHE FAMILY WILL STEP DOWN FROM LEADING ROLES ON THE SUPERVISORY BOARD THEY WILL MAKE ROOM FOR HELMUT SIHLER WHO SOME EXPECT WILL BRING THE COMPANY NEW IDEAS AND FRESH ENERGY MR SIHLER IS THE FORMER CHAIRMAN OF THE MANAGEMENT BOARD AT GERMAN CHEMICAL GROUP HENKEL AG 9301270152 930127 WHO'S NEWS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS LAWRENCE S EAGLEBURGER AND A KENNETH PYE WERE NAMED TO THE BOARD OF THIS ENERGY SERVICES AND ENGINEERING CONCERN INCREASING THE BOARD'S SIZE TO 12 MEMBERS MR EAGLEBURGER WAS SECRETARY OF STATE IN THE BUSH ADMINISTRATION IN 1992 PREVIOUSLY HE WAS DEPUTY SECRETARY OF STATE IN THAT SAME ADMINISTRATION DR PYE IS THE PRESIDENT OF SOUTHERN METHODIST UNIVERSITY OF DALLAS 9301270151 930127 BUSINESS BRIEF GM ISSUES RECALLS OF CERTAIN MODELS TO REPAIR DEFECTS DETROIT GENERAL MOTORS CORP SAID IT IS RECALLING A TOTAL OF 396000 VEHICLES TO REPLACE A DEFECTIVE COOLING FAN SYSTEM OR FIX FAULTY BRAKE LIGHT LAMPS THE FIRST RECALL INVOLVES 231000 1989 THROUGH 1992 MODEL CHEVROLET AND GMC COMPACT TRUCKS EQUIPPED WITH 25LITER FOURCYLINDER ENGINES WITHOUT AIR CONDITIONING THESE VEHICLES' COOLING FAN BLADES COULD FALL APART WHILE THE ENGINE IS RUNNING GM SAID ITS DEALERS WILL INSTALL A NEW COOLING FAN ASSEMBLY AT NO CHARGE GM SAID IT IS ALSO RECALLING ABOUT 84 OR 165000 OF ITS 1992MODEL CHEVROLET BERETTAS AND CORSICAS TO REPAIR FAULTY BRAKE LIGHT LAMPS THAT MAY FAIL TO ILLUMINATE WHEN THE BRAKE PEDAL IS DEPRESSED DEALERS WILL REPLACE THE LAMP'S HARNESS CONNECTOR AT NO CHARGE TO CUSTOMERS NO ACCIDENTS OR INJURIES HAVE BEEN REPORTED AS A RESULT OF EITHER CONDITION GM SAID 9301270150 930127 HEARD ON THE STREET AMERICAN EXPRESS LINEUP STRIKES OUT WITH INVESTORS BY STEVEN LIPIN AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS STOCK TUMBLED 5 YESTERDAY ON FIVE TIMES NORMAL VOLUME AS INVESTORS CONCLUDED THAT THE COMPANY'S NEW MANAGEMENT LINEUP ISN'T A VOTE FOR CHANGE LONGTIME AMERICAN EXPRESS CHAIRMAN JAMES D ROBINSON III GETS TO KEEP THE CHAIRMAN'S TITLE WHILE HIS HANDPICKED SUCCESSOR HARVEY GOLUB BECOMES CHIEF EXECUTIVE OFFICER SHAREHOLDERS AREN'T IMPRESSED THE COMPANY'S STOCK MARKET VALUE HAS PLUNGED 835 MILLION IN TWO DAYS INCLUDING YESTERDAY'S SLIDE OF 1 1/4 TO 23 7/8 ON VOLUME OF 73 MILLION SHARES THE SELLING COULD CONTINUE ANALYSTS ARE SLASHING PROFIT ESTIMATES AND SOME LARGE INVESTORS ARE VOWING TO GET OUT THEIR DISCOURAGEMENT COULD KEEP THE STOCK UNDER SELLING PRESSURE IN THE NEXT FEW WEEKS TWO PROBLEMS HAUNT THE STOCK MR ROBINSON IS STILL ON THE SCENE ALTHOUGH WALL STREET DOUBTS HE'S A CATALYST FOR A TURNAROUND AND THE EARNINGS OUTLOOK IS HIGHLY UNCERTAIN ESPECIALLY TROUBLING TO THE STREET IS THE COMPANY'S SHEARSON LEHMAN BROTHERS BUSINESS WHERE SOME ANALYSTS FEAR THERE COULD BE MORE BIG CHARGES AHEAD MONDAY AFTERNOON THE COMPANY POSTED DISAPPOINTING FOURTHQUARTER EARNINGS OF 82 MILLION DOWN 65 FROM A YEAR EARLIER REFLECTING WEAKNESS IN ITS CHARGECARD BUSINESS AND AN UNEXPECTED LOSS AT SHEARSON I THINK AT BEST THE STOCK IS PROBABLY DEAD MONEY SAID JOAN SOLOTAR ANALYST AT DONALDSON LUFKIN & JENRETTE SHE YANKED HER POSITIVE RATING OFF THE STOCK YESTERDAY DECLARED THE SHARES UNATTRACTIVE AND CUT HER 1993 ESTIMATE TO 175 A SHARE FROM 240 OTHER ANALYSTS TOOK ACTION TOO GERALD LEWINSOHN OF MERRILL LYNCH & CO SLASHED HIS 1993 PERSHARE ESTIMATE TO 195 FROM 250 SOME BIG INSTITUTIONAL INVESTORS ARE MIGRATING OUT OF THE STOCK BRANDYWINE ASSET MANAGEMENT A DELAWAREBASED INVESTMENT FIRM SAID YESTERDAY THAT IT PLANNED TO SELL ITS MILLIONSHARE STAKE IN AMERICAN EXPRESS THIS WAS VERY DISAPPOINTING SAYS PAUL EHRLICHMAN PARTNER AT THE FIRM WHEN YOU SEE POLITICS WIN OUT OVER SHAREHOLDERS ONCE AGAIN IT MAKES YOU THINK THAT MR ROBINSON IS UNIQUE IN HIS DISREGARD FOR SHAREHOLDERS AND CONTROL OVER THE COMPANY ANALYSTS FEAR FURTHER BAD NEWS THEY WONDER HOW MUCH IN ADDITIONAL CHARGES THE COMPANY MIGHT NEED IN 1993 TO REPAIR THE SHEARSON LEHMAN BROTHERS UNIT EVEN A FEW BULLS ON THE STOCK WERE UPSET WITH THE BOARD'S DECISION ARROGANCE AND SELFABSORPTION WON OUT OVER THE INTERESTS OF SHAREHOLDERS SAID E WILSON DAVIS AN ANALYST AT GERARD KLAUER MATTISON & CO MR ROBINSON IS A BIG NEGATIVE WHATEVER THE P/E RATIO IS IT'S LESS WITH JIM ROBINSON IN THE COMPANY PERIOD YET BECAUSE MR DAVIS IS A VALUE PLAYER WHO LOOKS FOR ATTRACTIVELY PRICED STOCKS HE LIKES AMERICAN EXPRESS STOCK RIGHT NOW IN PART BECAUSE IT'S CHEAP AT 10 TIMES HIS ESTIMATE FOR 1993 EARNINGS IN FACT SOME ARGUE THAT THE STOCK PRESENTS A BUYING OPPORTUNITY MARIO GABELLI CHIEF INVESTMENT OFFICER AT GABELLI ASSET MANAGEMENT CALLS AMERICAN EXPRESS SHARES AN AGGRESSIVE BUY AND SAYS HE WAS ADDING TO HIS 47 MILLIONSHARE POSITION YESTERDAY BUT THAT'S HARDLY THE CONSENSUS IN FACT THERE ISN'T ANY CONSENSUS FOR EARNINGS ESTIMATES WHICH CAN BE A WARNING SIGN FOR INVESTORS AMEX IS A COMPANY EMBROILED IN UNCERTAINTY AS SHOWN BY THE WIDE VARIATION IN THE STREET'S PROFIT ESTIMATES EVEN SOME VERY BIG SHAREHOLDERS WERE STARTLED BY THE MANAGEMENT REALIGNMENT DEWITT BOWMAN CHIEF INVESTMENT OFFICER OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE NATION'S LARGEST PUBLIC PENSION FUND SAYS WE HAD THOUGHT THAT MR ROBINSON WOULD NOT RETAIN AS STRONG A POSITION AS HE HAS BULLS SUCH AS MR GABELLI CONTEND THAT AN UPTURN IN CONSUMER SPENDING WILL FUEL CHARGE CARD VOLUME AND FATTEN PROFITS FOR THE COMPANY'S CORE TRAVEL RELATED SERVICES UNIT HE'S LOOKING FOR PROFIT OF 245 A SHARE IN 1993 AND 310 A SHARE IN 1994 MR GABELLI SAYS EVEN IF ROBINSON IS THERE AND STAYS THERE THE DYNAMICS ARE IN PLACE FOR BETTER EARNINGS AT TRAVEL RELATED SERVICES AND THE IDS FINANCIAL SERVICES UNIT A MUTUAL FUND AND INVESTMENT MANAGEMENT COMPANY OTHERS SEE A SERIES OF DAUNTING CHALLENGES IN 1993 AMERICAN EXPRESS HAS A FEW PARTS THE LARGEST OF WHICH IS TRAVEL RELATED SERVICES THIS IS WHERE MR GOLUB WILL DEVOTE HIS IMMEDIATE ATTENTION THE OTHER MAJOR COMPONENTS OF THE COMPANY ARE IDS FINANCIAL SERVICES AND FIRST DATA CORP BOTH PROFITABLE AND SHEARSON LEHMAN BROTHERS THE SECURITIES FIRM THE BULLS SAY TRS HAS HIT BOTTOM SPENDING PER CARDHOLDER WAS UP IN THE FOURTH QUARTER OF 1992 AND CREDIT LOSSES WERE DOWN FANS OF MR GOLUB SAY HE CAN STEM THE DECLINE OF CARDHOLDERS WHILE ENCOURAGING GREATER CARD USE BY EXISTING CUSTOMERS BUT THIS STRATEGY MEANS HE'LL SPEND HEAVILY ON MARKETING TO CONSUMERS AND ON PROVIDING BETTER DEALS FOR MERCHANTS THAT ACCEPT THE CARD MEANWHILE HE'S PROMISED TO SLASH 1 BILLION IN ANNUAL COSTS THROUGH LAYOFFS AND OTHER DOWNSIZING SHEARSON WHICH WILL NOW BE RUN BY MR ROBINSON IS A THORNIER PROBLEM THEY'VE IDENTIFIED THE PROBLEMS AT TRS BUT NOT AT SHEARSON SAYS MR LEWINSOHN OF MERRILL MUCH AS A SALE OF SHEARSON MIGHT HELP THE PARENT'S BALANCE SHEET HE SAYS SUCH A SALE IS AS ELUSIVE AS EVER DONALDSON LUFKIN'S MS SOLOTAR PREVIOUSLY EXPECTED SHEARSON TO TURN IN A 150 MILLION PROFIT THIS YEAR NOW SHE'S FORECASTING A 1993 LOSS OF 100 MILLION FOR SHEARSON WHICH ASSUMES A 250 MILLION CHARGE AGAINST EARNINGS TO CUT COSTS HER 12MONTH TARGET ON THE STOCK HAS FALLEN TO 24 FROM 30 MONEY MANAGER DAVID DREMAN HEAD OF DREMAN VALUE MANAGEMENT IN JERSEY CITY NJ SOLD HIS THREE MILLIONSHARE STAKE IN AMERICAN EXPRESS LATE LAST YEAR AFTER THE STOCK CLIMBED ON TALK OF PENDING MANAGEMENT CHANGES YESTERDAY HE SAID HE WOULD BE INTERESTED IN BUYING AGAIN IF THE STOCK FELL LOWER STILL I WOULD CERTAINLY LOOK AT THE STOCK AGAIN HE SAYS AMEX'S TRAVEL RELATED SERVICES UNIT IS NOT THE GROWTH BUSINESS IT WAS BUT WITH A CYCLICAL UPTURN IN THE ECONOMY I COULD SEE HIGHER EARNINGS AT THE RIGHT PRICE THE STOCK WOULD BE INTERESTING MR DREMAN VIEWS CRITICISMS OF MR ROBINSON AND HIS BOARD AS OVERLY HARSH THESE GUYS ARE FOLLOWING A DIFFERENT COURSE THAN THEY DID SOME YEARS AGO HE SAYS BUT MR DREMAN ADDS YOU WOULD LIKE TO SEE A BOARD OF DIRECTORS THAT WOULD ACT MORE QUICKLY IF THE COMPANY WAS IN TROUBLE AND MORE CONCERNED ABOUT ENHANCING SHAREHOLDER VALUE BEFORE THIS WEEK'S MANAGEMENT CHANGES MANY ANALYSTS WERE EXPECTING A CLEARER BREAK WITH THE PAST BRANDYWINE'S MR EHRLICHMAN SAYS THAT HE HAD HOPED AMEX WITH NEW MANAGEMENT COULD POSITION THE COMPANY AT THE EDGE OF A WAVE OF NEW TRENDS IN CONSUMER FINANCE WITHOUT A SIGNIFICANT CHANGE IN MANAGEMENT HE DOUBTS THAT AMEX CAN BECOME THAT KIND OF COMPANY MR EHRLICHMAN RESISTED THE URGE TO SELL HIS AMERICAN EXPRESS HOLDINGS IMMEDIATELY AND EXPECTS THE STOCK TO RECOVER ON BETTER EARNINGS BUT HE'S NOT A LONGTERM HOLDER THERE IS A WHOLE SEA CHANGE AROUND THE WORLD FOCUSING ON RETURNS AND STREAMLINING HE SAYS AMERICAN EXPRESS STANDS OUT AS AN EMBARRASSMENT FOR CORPORATE AMERICA YEAR ENDED DEC 31 1992 FOURTH QUARTER DEC 31 1992 NOTE RESULTS INCLUDE 166 MILLION OF 4THQUARTER AFTERTAX CHARGES FROM SHEARSON LEHMAN BROTHERS' ADDITIONAL LEGAL PROVISIONS AND A WRITEDOWN OF REAL ESTATE INVESTMENTS YEAR ALSO INCLUDES 342 MILLION RESTRUCTURING CHANG AT TRAVEL RELATED SERVICES 150 MILLION OF CHARGES RELATED TO SHEARSON'S HOLDINGS OF COMPUTERVISION INC AND 425 MILLION GAIN FROM FIRST DATA CORP PUBLIC OFFERING 9301270149 930127 TECHNOLOGY IMCLONE CHUGAI SET ALLIANCE TO DEVELOP BLOOD CELL PRODUCT NEW YORK IMCLONE SYSTEMS INC AND CHUGAI PHARMACEUTICAL CO SAID THEY ENTERED A STRATEGIC ALLIANCE TO DEVELOP BLOOD CELL GROWTH FACTORS THAT TARGET A NOVEL RECEPTOR KNOWN AS FLK2 UNDER THE ALLIANCE IMCLONE A BIOPHARMACEUTICAL COMPANY WILL RECEIVE AS MUCH AS 35 MILLION FROM CHUGAI FOR RESEARCH SUPPORT AND TO COMPLETE MILESTONES INCLUDING PRODUCT APPROVAL IN JAPAN CHUGAI A RESEARCHBASED PHARMACEUTICAL CONCERN BASED IN TOKYO WILL HAVE EXCLUSIVE MANUFACTURING AND MARKETING RIGHTS IN JAPAN AND SOME OTHER ASIAN NATIONS THE FLK2 RECEPTOR IS FOUND ON CELLS THAT ARE BELIEVED TO BE TOTIPOTENT STEM CELLS THE PRECURSORS TO THE BLOOD AND IMMUNE CELL SYSTEM GROWTH FACTORS DIRECTED AT FLK2 MAY BE ABLE TO RECONSTITUTE ENTIRE CELL POPULATIONS THAT ARE FREQUENTLY DESTROYED THROUGH CHEMOTHERAPY AND RADIATION THERAPY THE COMPANIES SAID GROWTH FACTORS FOR TOTIPOTENT STEM CELLS ALSO MAY HAVE APPLICATIONS IN BONE MARROW TRANSPLANTS AND A VARIETY OF BLOOD CELL DISORDERS 9301270148 930127 DELTA AND USAIR DRAW BATTLE LINES IN SHUTTLE FARE WAR CARRIERS BLAMING EACH OTHER FOR CUTS OF AS MUCH AS 34 ON THE EAST COAST ROUTES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL AN EAST COAST SHUTTLE WAR BROKE OUT AND TWO AIRLINES ARE BLAMING EACH OTHER FOR SHOOTING FIRST DELTA AIR LINES AND USAIR GROUP SLASHED FARES BY 34 TO 99 FOR ONEWAY TICKETS ON THEIR HOURLY BOSTONNEW YORKWASHINGTON SHUTTLE SERVICE TICKETS FOR FLIGHTS ON A SATURDAY OR SUNDAY BEFORE 330 PM DROPPED SLIGHTLY TO 69 USAIR A UNIT OF USAIR GROUP INC ALSO INTRODUCED A 39 WEEKEND FARE FOR CHILDREN TRANS WORLD AIRLINES WHICH FLIES THE NEW YORKWASHINGTON ROUTE AND NEW YORKBOSTON ROUTE MATCHED THE PRICE CUT EXCLUDING THE SPECIAL CHILDREN'S FARE CONTINENTAL AIRLINES A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC WHICH ALSO SERVES THE EAST COST CORRIDOR IS STUDYING THE MOVE DELTA AND USAIR EXCHANGED BARBS OVER WHO'S RESPONSIBLE FOR THE CUT WHICH WILL REDUCE MUCHNEEDED REVENUE FOR BOTH COMPANIES USAIR BASED IN FAIRFAX VA HAS BEEN OFFERING DISCOUNTED SHUTTLE TICKETS TO TRAVEL AGENTS WHO GENERATE HEAVY SALES DELTA BASED IN ATLANTA SAID IT WAS FORCED TO CUT PRICES TO MAINTAIN ITS COMPETITIVENESS USAIR SAID IT'S NOW FOLLOWING DELTA AND HAS ELIMINATED ITS SPECIAL DISCOUNTS FOR EAST COAST COMMUTERS THE PRICE CUT REPRESENTS A REPRIEVE FROM RECENT FARE HIKES WE NEEDED A SHUTTLE WAR SAYS GARY TOPPING PRESIDENT OF GULFSTREAM TRAVEL INC IN RECENT MONTHS DELTA AND USAIR HAVE PUSHED UP ONEWAY SHUTTLE FARES TO 150 FROM ABOUT 120 AND TRAVEL EXPERTS SAY PASSENGERS WERE BEGINNING TO USE ALTERNATIVE TRANSPORTATION A LOT OF PEOPLE STOPPED TAKING THE SHUTTLE BECAUSE PRICES ARE TOO HIGH SAYS JOE BRANCANTELLI EXECUTIVE EDITOR OF FREQUENT FLYER MAGAZINE BOTH DELTA AND USAIR SAY SHUTTLE TRAFFIC HAS BEEN STRONG AND DELTA SAYS ITS OPERATION IS PROFITABLE USAIR RECEIVES AN OPERATING FEE FROM A GROUP OF BANKS LED BY CITICORP WHICH TOOK OVER THE SHUTTLE FROM REAL ESTATE DEVELOPER DONALD TRUMP BUT THE EASTERN SEABOARD'S WEAK ECONOMY HAS HURT DEMAND AND COMPETITORS HAVE UNDERCUT THE SHUTTLES TWA FOR EXAMPLE WAS OFFERING A ROUNDTRIP SUPERSAVER FARE FOR 150 FOR FLIGHTS BETWEEN NEW YORK AND WASHINGTON WHICH IS 50 LESS THAN SHUTTLE PRICES AND WALKUP FARES OF 120 MOREOVER AMTRAK'S METROLINER EXPRESS RUNS BETWEEN PENN STATION IN MANHATTAN AND DOWNTOWN WASHINGTON AND CHARGES 89 FOR ONEWAY TICKETS LAST YEAR THE METROLINER CARRIED 19 MILLION PASSENGERS THE TRIP TAKES 2 HOURS AND 40 MINUTES WHICH IS NOT MUCH LONGER THAN FLYING WHEN TRAVEL TIME TO AND FROM THE AIRPORTS IS CONSIDERED AVMARK INC AN AIRLINE CONSULTING FIRM IN ARLINGTON VA SAYS SIX MILLION PASSENGERS INCLUDING NONSHUTTLE TRAFFIC FLEW ALONG THE BOSTONNEW YORKWASHINGTON CORRIDER IN 1991 A NUMBER THAT'S BEEN FLAT FOR SEVERAL YEARS CORRIDOR TRAFFIC FELL AFTER 1987 WHEN PEOPLE EXPRESS CEASED OPERATIONS AND HAS NEVER RECOVERED AVMARK SAYS SHUTTLE WARS WERE COMMON IN THE 1980S WHEN EASTERN AIRLINES AND PAN AMERICAN WORLD AIRWAYS WERE DUELING DELTA BOUGHT THE PAN AM SHUTTLE IN 1991 EASTERN INTRODUCED THE SHUTTLE IN THE EARLY 1960S WHEN ONEWAY TICKETS WERE 23 AND PRICES RARELY WENT OVER 100 UNTIL THE PAST TWO YEARS 9301270147 930127 US OFFICIAL RESERVE ASSETS FELL 908 MILLION IN MONTH WASHINGTON US OFFICIAL RESERVE ASSETS FELL 908 MILLION IN DECEMBER TO 7132 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S DROP COMPARED WITH A 198 BILLION DECLINE IN NOVEMBER TO 7223 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES DROPPED 891 MILLION IN DECEMBER TO 4001 BILLION WHILE ITS GOLD RESERVES DECREASED 3 MILLION TO 1106 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH FELL 299 BILLION TO 85 BILLION AND ITS RESERVE POSITION AT THE IMF INCREASED 298 BILLION TO 1176 BILLION 9301270146 930127 FINANCING BUSINESS VIAGENE INC VIAGENE INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 25 MILLION COMMON SHARES THE PERSHARE OFFERING PRICE IS EXPECTED TO BE BETWEEN 11 AND 13 VIAGENE SAID PROCEEDS WILL BE USED FOR RESEARCH AND DEVELOPMENT WORKING CAPITAL AND OTHER CORPORATE PURPOSES IT ADDED VIAGENE IS A SAN DIEGO BIOPHARMACEUTICAL COMPANY INVOLVED IN THE DISCOVERY OF DRUGS FOR THE TREATMENT OF SEVERE VIRAL INFECTIONS CANCERS AND OTHER DISEASES FIRST BOSTON CORP WILL LEAD THE UNDERWRITING GROUP 9301270145 930127 BUSINESS BRIEF SCOTT PAPER POSTS 4THPERIOD EARNINGS STOCK RISES 2 JAMES RIVER HAS A LOSS SCOTT PAPER CO REPORTED PROFIT FOR THE FOURTH QUARTER AND YEAR REVERSING YEAREARLIER LOSSES AND SENDING ITS STOCK UP SHARPLY WHILE JAMES RIVER CORP POSTED A LOSS PHILADELPHIABASED SCOTT A MAKER OF PRINTING PAPER AND PRODUCTS SUCH AS BATHROOM TISSUE AND PAPER TOWELS SAID THE YEAREARLIER LOSS INCLUDED CHARGES OF 183 MILLION FOR COSTS OF SELLING BUSINESSES AND REDUCING ITS WORK FORCE FOURTHQUARTER NET INCOME WAS 448 MILLION OR 61 CENTS A SHARE REVERSING A LOSS OF 1577 MILLION OR 214 A SHARE SALES WERE FLAT AT ABOUT 123 BILLION FOR THE YEAR NET WAS 1672 MILLION OR 226 A SHARE AFTER A 1991 LOSS OF 699 MILLION OR 95 CENTS A SHARE SALES ROSE ABOUT 4 TO 49 BILLION FROM 47 BILLION SCOTT PAPER SHARES ROSE 2 TO CLOSE AT 38375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING JAMES RIVER ON THE OTHER HAND HAD WORSETHANEXPECTED RESULTS WHICH IT SAID REFLECTED SPECIAL CHARGES AND DIFFICULT MARKET CONDITIONS STANDARD & POOR'S CORP SAID IT WAS PLACING THE COMPANY'S DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE THE COMPANY'S COMMON FELL 625 CENTS TO 1750 ALSO ON THE BIG BOARD JAMES RIVER SAID STRONG COMPETITION AND A WEAK ECONOMY CUT INTO ITS PRICES AND VOLUME THE COMPANY SAID IT EXPECTS OPERATING RESULTS TO REMAIN SOMEWHAT DEPRESSED AT LEAST FOR THE EARLY PART OF 1993 THE RICHMOND VA MAKER OF HOUSEHOLD PAPER PRODUCTS AS WELL AS OTHER PAPER AND PACKAGING PRODUCTS REPORTED A LOSS OF 1528 MILLION OR 197 A SHARE FOR THE QUARTER A YEAR EARLIER IT HAD NET OF 78 MILLION OR TWO CENTS A SHARE THE LOSS INCLUDED CHARGES TOTALING 153 A SHARE FOR DEBT REDUCTION TEMPORARY PRODUCTION CUTS ONETIME ENVIRONMENTAL COSTS AND ACCOUNTING CHANGES FOR THE YEAR THE COMPANY HAD A NET LOSS OF 4273 MILLION OR 555 A SHARE IT HAD NET INCOME OF 783 MILLION OR 66 CENTS A SHARE IN 1991 THE 1992 RESULTS INCLUDE A ONETIME PRETAX CHARGE OF 4993 MILLION FOR AN ACCOUNTING CHANGE FOR RETIREMENT BENEFITS IN ADDITION TO THE RESTRUCTURING CHARGES STANDARD & POOR'S CITED THE WORSETHANEXPECTED RESULTS IN ITS REVIEW OF JAMES RIVER'S 23 BILLION OF DEBT OUTSTANDING THE SENIOR DEBT IS CURRENTLY RATED TRIPLEBPLUS IT SAID THE COMPANY'S SENIOR RATING IF LOWERED ISN'T LIKELY TO GO BELOW TRIPLEB 9301270144 930127 WHO'S NEWS DOFASCO INC DOFASCO INC HAMILTON ONTARIO JOHN MAYBERRY 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS STEELMAKING CONCERN MR MAYBERRY WHO WAS THE COMPANY'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER FILLS THE POSITIONS LEFT VACANT BY THE RESIGNATION IN JULY OF WILLIAM L WALLACE MR MAYBERRY HEADED DOFASCO'S FIVEMEMBER MANAGEMENT COMMITTEE FORMED FOLLOWING MR WALLACE'S DEPARTURE 9301270143 930127 FINANCING BUSINESS STERLING SOFTWARE INC STERLING SOFTWARE INC DALLAS SAID IT FILED A REGISTRATION STATEMENT TO OFFER 100 MILLION OF 575 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE COMPANY COULD ALSO ISSUE AS MUCH AS 15 MILLION MORE OF THE DEBENTURES IF THE UNDERWRITERS LED BY ALEX BROWN & SONS EXERCISE THEIR OVERALLOTMENT OPTION THE DEBENTURES ARE PRICED AT 100 OF THE FACE AMOUNT WILL ACCRUE INTEREST AT 575 AND ARE CONVERTIBLE INTO COMMON STOCK AT ANY TIME BEFORE MATURITY AT A CONVERSION PRICE OF 2835 A SHARE THE COMPANY WILL USE PROCEEDS TO REDEEM ITS 8 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES FOR WORKING CAPITAL AND FOR OTHER GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE BUILDING AND PRODUCT ACQUISITIONS AS OF DEC 31 ABOUT 526 MILLION PRINCIPAL AMOUNT OF THE 8 DEBENTURES WAS OUTSTANDING 9301270142 930127 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO DAN SUTHERLAND 40 YEARS OLD WAS NAMED VICE PRESIDENT OF STRATEGIC MARKETING AT THIS REGIONAL BELL TELECOMMUNICATIONS CONCERN MR SUTHERLAND WHO HAD BEEN VICE PRESIDENT OF MARKETING FOR U S WEST COMMUNICATIONS' CARRIER MARKET UNIT SUCCEEDS JERI KORSHAK 35 WHO WAS NAMED VICE PRESIDENT AND HEAD OF THE U S WEST ENHANCED SERVICES INC UNIT IN MID1992 9301270141 930127 KFC'S BIG CHICKEN SIGN ESCAPES THE HATCHET MAN MARIETTA GA THE BIG CHICKEN IS GOING TO LIVE THE FATE OF A 30YEAROLD 56FOOTTALL STEEL ROOSTER ATOP A KENTUCKY FRIED CHICKEN RESTAURANT HERE HAS BEEN UNCERTAIN SINCE THE SIGN WAS DAMAGED DURING A RECENT RAINSTORM AFTER THE STORM KFC A PEPSICO INC UNIT CONSIDERED DISMANTLING THE CHICKEN WHOSE FRAME HAD BECOME RUSTY AND CORRODED BUT THE CHICKEN HAD BECOME SOMETHING OF A LANDMARK IN THE AREA INEXPLICABLY BELOVED THOUSANDS OF CALLS DELUGED KFC'S LOUISVILLE KY HEADQUARTERS TO SAVE THE BIG CHICKEN YESTERDAY THE FASTFOOD CHAIN RELENTED SAYING IT WOULD REPAIR THE CHICKEN SIGN ALLOTING AS MUCH AS 200000 9301270140 930127 ECONOMY SALES OF EXISTING SINGLEFAMILY HOMES ROSE 5 IN DECEMBER TO 13YEAR HIGH BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL FUELED BY THE YEAREND BURST IN CONSUMER CONFIDENCE SALES OF EXISTING SINGLEFAMILY HOMES ROSE 5 IN DECEMBER TO THEIR HIGHEST LEVEL IN 13 YEARS SINGLEFAMILY HOMES SOLD LAST MONTH AT A SEASONALLY ADJUSTED ANNUAL RATE OF FOUR MILLION A 5 ADVANCE FROM NOVEMBER AND 21 JUMP FROM THE YEARAGO PERIOD ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS SALES FOR THE YEAR HIT 35 MILLION AN 87 JUMP FROM 1991 AND THE FASTEST PACE SINCE 1988 BROKERS AND ECONOMISTS ATTRIBUTE THE PICKUP TO A SURGE IN CONSUMER CONFIDENCE FOLLOWING THE ELECTION COUPLED WITH LOW MORTGAGE RATES AND AFFORDABLE PRICES BUT MANY DOUBT THE DECEMBER SALES PACE IS SUSTAINABLE PARTICULARLY SINCE THERE ARE INDICATIONS THAT CONSUMER CONFIDENCE IS LEVELING OFF IN JANUARY IT WAS PROBABLY THE BEST DECEMBER WE'VE HAD IN THE LAST DECADE SAID CHANDLER BARTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COLDWELL BANKER RESIDENTIAL GROUP THE BROKERAGE ARM OF SEARS ROEBUCK & CO HOWEVER JANUARY IS STARTING OFF AT A SLOWER PACE THAN LAST YEAR THE SEASONAL ADJUSTMENT MIGHT BE OVERSTATED IN DECEMBER TRADITIONALLY ONE OF THE YEAR'S SLOWEST SALES PERIODS EXPLAINED JOHN TUCCILLO CHIEF ECONOMIST FOR THE REALTORS ASSOCIATION I THINK WE CAN CLEARLY SUSTAIN A 36 MILLION TO 37 MILLION SALES RATE DURING 1993 WHICH WOULD BE THE HIGHEST RATE SINCE 1979 BROKERS EXPRESS NO CONCERN THAT THE MARKET WILL COLLAPSE IN 1993 WE'RE VERY CONFIDENT ABOUT THE COMING YEAR SAID RICHARD LOUGHLIN PRESIDENT AND CHIEF EXECUTIVE OF CENTURY 21 REAL ESTATE CORP THE REAL ESTATE ARM OF METROPOLITAN LIFE INSURANCE CO THE COMPANY RECENTLY CHANGED ITS FORECAST FOR INDUSTRYWIDE SALES IN 1993 TO 39 MILLION FROM 37 MILLION WE SAW THE INCREASES COMING HE SAID TRANSACTIONS WERE UP A BIT FROM YEARAGO LEVELS IN OCTOBER UP 20 IN NOVEMBER AND 24 IN DECEMBER VIRTUALLY ALL OF THE NUMBERS WE'RE SEEING IN HOUSING HAVE BEEN GOING UP SAID LYLE GRAMLEY CONSULTING ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION HOUSING STARTS JUMPED 55 IN DECEMBER AND FUELED BY A ONEQUARTER PERCENTAGE POINT DROP IN INTEREST RATES IN DECEMBER MORTGAGE APPLICATIONS FOR HOME PURCHASES ON A SEASONALLY ADJUSTED BASIS JUMPED ABOUT 25 DURING THE PAST MONTH SAID MR GRAMLEY WHAT IS AT ISSUE IS WHETHER WE'RE SEEING ANOTHER BLIP DOWN IN INTEREST RATES AND WHETHER THEY WILL JUMP BACK UP HE SAID IF PRESIDENT CLINTON IS ABLE TO PUSH THROUGH LEGISLATION PRODUCING DEEP CUTS IN THE FEDERAL DEFICIT HE SAID MORTGAGE RATES WILL PROBABLY FALL FURTHER FUELING FURTHER HOMEBUYING ACTIVITY WE'RE TURNING OUR WHEELS LIKE WE HAVEN'T DONE IN MANY YEARS SAID JIM ROMAN A BROKER WITH THE HALSTEAD PROPERTY CO IN MANHATTAN THE BUYERS HAVE FINALLY GOTTEN THE MESSAGE THAT IT'S OK TO GET BACK INTO THE MARKET 9301270139 930127 TREASURY PLANS SALE TOTALING 232 BILLION WASHINGTON THE TREASURY PLANS TO PAY DOWN ABOUT 350 MILLION ON THE FEDERAL DEBT WITH THE SALE MONDAY OF ABOUT 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2354 BILLION THE SALE AMOUNT IS UNCHANGED FROM THE PREVIOUS AUCTION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK BILLS MATURING MAY 6 AND 26WEEK BILLS MATURING AUG 5 BOTH ISSUES WILL BE DATED FEB 4 THE MINIMUM DENOMINATION WILL BE 10000 TENDERS MUST BE RECEIVED ON MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES BY NOON EST FOR NONCOMPETITIVE BIDS AND 1 PM EST FOR COMPETITIVE TENDERS THE CUSIP NUMBERS ARE 912794C51 FOR THE 13WEEK BILLS AND 912794F25 FOR THE 26WEEK BILLS 9301270138 930127 WHO'S NEWS BAUSCH & LOMB SELECTS ZARELLA TO BE PRESIDENT BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL ROCHESTER NY BAUSCH & LOMB INC PICKED RONALD L ZARELLA THE 43YEAROLD PRESIDENT OF ITS INTERNATIONAL DIVISION TO BE PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY EFFECTIVE FEB 10 MR ZARELLA WHO HAS BEEN GRADUALLY ASSUMING HIS NEW DUTIES SINCE LAST APRIL SUCCEEDS THOMAS C MCDERMOTT 56 WHO ANNOUNCED HIS RETIREMENT PLANS LAST YEAR THE SWITCH APPEARS TO PUT MR ZARELLA IN LINE TO EVENTUALLY SUCCEED CHAIRMAN DANIEL E GILL BUT WON'T LIKELY HAVE AN IMMEDIATE EFFECT ON THE COMPANY'S PERFORMANCE ANALYSTS SAID MR MCDERMOTT WORKED ALMOST ENTIRELY IN THE SHADOW OF MR GILL ONE ANALYST SAID HE HAD MET MR MCDERMOTT ONLY ONCE IN SIX YEARS MR ZARELLA HELPED SET UP 11 OVERSEAS UNITS AND SAW INTERNATIONAL SALES RISE TO 50 OF REVENUE FROM 26 THE INTERNATIONAL DIVISION HAS SINCE BEEN COLLAPSED INTO A REGIONAL SYSTEM WITH PRESIDENTS OF THREE REGIONS REPORTING TO MR ZARELLA BAUSCH & LOMB ALSO REPORTED A FOURTHQUARTER PROFIT OF 517 MILLION OR 86 CENTS A SHARE MOSTLY BECAUSE OF INCREASED DEMAND FOR DISPOSABLE CONTACT LENSES AND AN 18 BOOST IN OVERSEAS SALES A YEAR EARLIER THE COMPANY HAD A LOSS OF 183 MILLION OR 30 CENTS A SHARE AFTER RESTRUCTURING AND RETIREE BENEFITS CHARGES OF 633 MILLION OR 105 A SHARE REVENUE IN THE QUARTER ROSE TO 4284 MILLION FROM 3869 MILLION THE HEALTH CARE SEGMENT TURNED IN THE BEST SHOWING WITH CONSOLIDATED OPERATING EARNINGS JUMPING 16 TO 1726 MILLION ON A 6 INCREASE IN REVENUE TO 2774 MILLION THE GAINS WERE LED BY DISPOSABLE SEEQUENCE AND FREQUENT REPLACEMENT MEDALIST CONTACT LENSES WHOSE COMBINED SALES SURGED 55 OVER THE YEAREARLIER QUARTER DEMAND FOR CONTACT LENSES AND LENSCARE PRODUCTS MORE THAN OFFSET A DISAPPOINTING PERFORMANCE FOR THE SEGMENT'S ORAL CARE PRODUCTS ORAL CARE SALES WHICH ACCOUNT FOR ABOUT 7 OF BAUSCH & LOMB'S TOTAL SALES DECLINED 25 IN THE QUARTER SAID KIDDER PEABODY ANALYST RUTH ALON THE HEALTH CARE SEGMENT'S PHARMACEUTICAL OPERATIONS ARE STILL LOSING MONEY BUT AFTERTAX LOSSES IN 1992 NARROWED TO 64 MILLION FROM 9 MILLION IN 1991 BY CONSERVATIVE ESTIMATES AFTERTAX LOSSES WILL SHRINK AN ADDITIONAL 12 MILLION TO 2 MILLION THIS YEAR A SPOKESMAN SAID THE LOSSES STEM FROM THE COMPANY'S COST OF RUNNING TWO PHARMACEUTICALS PLANTS WHILE AWAITING FOOD AND DRUG ADMINISTRATION APPROVAL TO MOVE ALL ITS DRUG PRODUCTION TO ITS TAMPA FLA PLANT THE OPTICS SEGMENT SHOWED A 21 REVENUE GAIN TO 151 MILLION MOSTLY DUE TO INCREASED SALES OF SUNGLASSES IN ASIA BUT THE SEGMENT'S CONSOLIDATED OPERATING EARNINGS FELL 2 TO 1335 MILLION BECAUSE OF A SCRAP WITH DISTRIBUTORS A COMPANY SPOKESMAN SAID BAUSCH & LOMB CUT TIES WITH SEVERAL US DISTRIBUTORS OF RAYBAN SUNGLASSES LAST YEAR FOR ALLEGEDLY SELLING THE SUNGLASSES TO UNAUTHORIZED OVERSEAS DEALERS WHO IN TURN UNDERPRICED RAYBAN'S AUTHORIZED DISTRIBUTORS THE US DISTRIBUTORS BROUGHT IN 25 MILLION TO 30 MILLION A YEAR OR ABOUT 10 OF THE RAYBAN'S ANNUAL US SALES A COMPANY SPOKESMAN SAID 9301270137 930127 EASTEX ENERGY REGISTERS SHARES HOUSTON EASTEX ENERGY INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSED OFFERING OF 22 MILLION COMMON SHARES THE OFFERING UNDERWRITTEN BY MABON SECURITIES CORP INCLUDES 17 MILLION SHARES ISSUED BY THE COMPANY AND 500000 TO BE SOLD BY HOLDERS EASTEX HAD 42 MILLION SHARES OUTSTANDING AS OF DEC 31 THE NATURAL GAS MARKETING AND TRANSPORTATION COMPANY SAID PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING DEVELOPMENT OR ACQUISITION OF ADDITIONAL GATHERING STORAGE OR PRODUCTION ASSETS 9301270136 930127 INTERNATIONAL NEC UNIT TO DROP HOME VCRS TOKYO NEC HOME ELECTRONICS LTD A UNIT OF NEC CORP SAID IT WILL STOP MAKING VIDEOCASSETTE RECORDERS FOR HOME USE THE NEC SUBSIDIARY WILL CONTINUE TO SELL HOMEUSE VCRS PRODUCED ON AN ORIGINALEQUIPMENTMANUFACTURING BASIS BY SANYO ELECTRIC CO THE SPOKESMAN SAID THE MOVE COMES IN LIGHT OF A PROLONGED SLUMP IN THE AUDIOVIDEO MARKET AND AS PART OF AN OVERALL STREAMLINING NEC EXPECTS TO SELL THE SANYOMADE VCRS AT A RATE OF A FEW THOUSAND UNITS A MONTH THROUGH THE ROUGHLY 60000 NECAFFILIATED STORES IN JAPAN 9301270135 930127 PACIFIC GAS BOND REDEMPTION SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID IT WILL REDEEM ON MARCH 1 ITS 80 MILLION OUTSTANDING OF 9 SERIES TT FIRST AND REFUNDING MORTGAGE BONDS DUE 2001 BOND HOLDERS WILL RECEIVE 102840 AND ACCRUED INTEREST OF 2250 FOR EVERY 1000 PRINCIPAL AMOUNT OF BONDS THE REDEMPTION IS EXPECTED TO REDUCE THE UTILITY'S ANNUAL FINANCING COSTS BY ABOUT 700000 WITH AN ESTIMATED 5 MILLION SAVINGS OVER THE LIFE OF THE BONDS PACIFIC GAS & ELECTRIC SAID 9301270134 930127 MARKETING & MEDIA CAPITAL CITIES PUTS WURTZEL IN NEWS MAGAZINE POSITION NEW YORK CAPITAL CITIES/ABC INC NAMED ITS TOP RESEARCH EXECUTIVE ALAN WURTZEL TO A NEW POST AT ABC NEWS OVERSEEING THE NETWORK'S NEWS MAGAZINE SHOWS THE POSITION MARKS THE FIRST TIME THAT MR WURTZEL 45 YEARS OLD WILL HAVE DIRECT PROGRAMMING RESPONSIBILITY AT ABC HE HAD BEEN SENIOR VICE PRESIDENT OF MARKETING AND RESEARCH SERVICES SINCE 1988 CLOSELY TRACKING AUDIENCE RESEARCH AND ABC'S RATINGS PERFORMANCE AND PARTICIPATING IN SCHEDULING AND PROGRAMMING DECISIONS IN THE NEW JOB AS SENIOR VICE PRESIDENT FOR MAGAZINE AND LONGFORM PROGRAMMING MR WURTZEL WILL OVERSEE A PARTICULARLY LUCRATIVE PART OF THE NEWS DIVISION 20/20 AND PRIME TIME LIVE COST LESS THAN HOURLONG ENTERTAINMENT SHOWS AND FARE QUITE WELL IN THE RATINGS ABC NEWS ALSO IS WORKING ON A SUNDAY EVENING PRIMETIME MAGAZINE THAT WILL GO UP AGAINST CBS INC'S POPULAR 60 MINUTES MR WURTZEL WHO JOINED ABC'S RESEARCH DEPARTMENT IN 1978 WILL REPORT TO THE NEWLY NAMED NO 2 EXECUTIVE IN THE NEWS DIVISION EXECUTIVE VICE PRESIDENT PAUL FRIEDMAN 9301270133 930127 WHO'S NEWS AMBASE CORP AMBASE CORP NEW YORK RICHARD A BIANCO 45 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS GEORGE T SCHARFFENBERGER 73 WHO RETIRED YESTERDAY ALONG WITH FOUR OTHER DIRECTORS WITH THE RETIREMENTS OF EDWIN HATCH 79 PAUL PAGANUCCI 62 EBEN PYNE 75 AND THOMAS RICE 80 THE BOARD WAS CUT TO FIVE MEMBERS MR SCHARFFENBERGER RELINQUISHED HIS POSITION AS CHIEF EXECUTIVE IN MAY 1991 AMBASE IS OPERATING AS A HOLDING COMPANY ITS LAST MAJOR OPERATING ASSET CARTERET SAVINGS BANK WAS SEIZED BY FEDERAL REGULATORS IN DECEMBER 9301270132 930127 NORTHWEST NATURAL GAS RESULTS PORTLAND ORE NORTHWEST NATURAL GAS CO SAID COLDER WEATHER BOOSTED FOURTHQUARTER SALES ALLOWING IT TO POST A PROFIT COMPARED WITH A YEAREARLIER LOSS NET INCOME IN THE QUARTER TOTALED 137 MILLION OR 108 A SHARE COMPARED WITH A LOSS OF 52 MILLION OR 50 CENTS A SHARE IN THE 1991 PERIOD REVENUE ROSE 10 TO 974 MILLION FROM 888 MILLION FOR THE YEAR NET INCOME ROSE 10 TO 158 MILLION OR 111 A SHARE FROM 144 MILLION OR 101 A SHARE REVENUE DECLINED TO 2744 MILLION FROM 2959 MILLION THE COMPANY SAID FIRSTHALF EARNINGS WERE DEPRESSED BY RECORD HOT WEATHER 9301270131 930127 POPE & TALBOT QUARTERLY PROFIT PORTLAND ORE POPE & TALBOT INC CITING STRONG LUMBER PRICES AND IMPROVEMENT IN THE PULP MARKET POSTED ITS BEST QUARTERLY RESULTS IN TWO YEARS ALTHOUGH IT STILL HAD A LOSS FOR THE FULL YEAR THE PAPER PULP AND WOOD PRODUCTS CONCERN REPORTED FOURTHQUARTER NET INCOME OF 28 MILLION OR 25 CENTS A SHARE COMPARED WITH A LOSS OF 88 MILLION OR 76 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 25 TO 1439 MILLION FROM 1155 MILLION FOR THE YEAR POPE & TALBOT SAID ITS LOSS NARROWED TO 23 MILLION OR 19 CENTS A SHARE FROM 116 MILLION OR 1 A SHARE IN 1991 REVENUE INCREASED 8 TO 5443 MILLION FROM 5023 MILLION 9301270130 930127 INTERNATIONAL NESTLE SALES ROSE 79 IN 1992 ZURICH NESTLE SA SAID ITS CONSOLIDATED SALES ROSE 79 TO 545 BILLION SWISS FRANCS 3767 BILLION IN 1992 FROM 5049 BILLION FRANCS IN THE PREVIOUS YEAR THE GROUP SAID IT EXPECTS ITS RESULTS TO CONTINUE TO GROW THIS YEAR BARRING UNFORESEEN CIRCUMSTANCES THE SWISS FOOD GIANT SAID THAT SALES ROSE IN MOST COUNTRIES EXCEPT BRAZIL WHERE SALES DROPPED SHARPLY THE COMPANY SAID SIGNIFICANT SALES INCREASES WERE POSTED IN THE US AND EAST ASIA NESTLE WILL ANNOUNCE ITS 1992 NET PROFIT AND DIVIDEND PROPOSAL AFTER A BOARD MEETING MARCH 24 9301270129 930127 PFIZER RENAMES CHEMICALS UNIT NEW YORK PHARMACEUTICAL CONCERN PFIZER CORP RENAMED ITS SPECIALTY CHEMICALS UNIT TO REFLECT ITS ROLE AS A SUPPLIER OF FOOD INGREDIENTS AND INTRODUCED A NEW LOWFAT INGREDIENT FOR ICE CREAM PFIZER SPECIALTY CHEMICALS GROUP WAS RENAMED PFIZER FOOD SCIENCE GROUP THE UNIT UNVEILED DAIRYLO A MILK PROTEIN USED TO REDUCE FAT IN FROZEN DAIRY FOODS CHEESE AND OTHER FOODS PFIZER DEVELOPED THE PRODUCT IN COLLABORATION WITH AULT FOODS LTD OF CANADA WHICH HAS CAPTURED NEARLY 4 OF THE FROZEN DESSERT MARKET IN CANADA SINCE DAIRYLO WAS LAUNCHED A YEAR AGO 9301270128 930127 WHO'S NEWS ARTISOFT INC ARTISOFT INC TUCSON ARIZ WILLIAM C KEIPER 42 YEARS OLD WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR C JOHN SCHOOF II 34YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER PREVIOUSLY HELD THE TITLE OF PRESIDENT UNTIL THE COMPANY BEGAN ITS SEARCH FOR A NEW PRESIDENT LAST YEAR THE POSITION OF CHIEF OPERATING OFFICER IS NEW MR KEIPER FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF MICROAGE INC INCREASES THE BOARD TO SIX MEMBERS PENDING BOARD APPROVAL ARTISOFT DEVELOPS AND MAKES COMPUTER HARDWARE AND SOFTWARE FOR LOCAL AREA NETWORKS 9301270127 930127 DR PEPPER BOTTLING TENDER OFFER DALLAS DR PEPPER BOTTLING CO OF TEXAS SAID IT SWEETENED THE TERMS OF A CASH OFFER TO DEBTHOLDERS RELATED TO A PENDING TENDER OFFER FOR 155 MILLION OF NOTES THE UNIT OF DR PEPPER BOTTLING HOLDINGS INC SAID IT INCREASED TO 2750 PER 1000 PRINCIPAL AMOUNT FROM 20 THE CASH PAYMENT OFFERED TO HOLDERS WHO WILL CONSENT TO AMENDMENTS IN THE TERMS OF ITS SENIOR SUBORDINATED DISCOUNT NOTES DUE 1998 THE SOFTDRINK BOTTLER HAS MADE A TENDER OFFER TO BUY BACK THE NOTES FOR 1095 PER 1000 PRINCIPAL AMOUNT PLUS THE CONSENT PAYMENT THE COMPANY ALSO SAID IT EXTENDED THE EXPIRATION DATE OF THE TENDER OFFER TO FEB 8 AND OF THE CONSENT SOLICITATION TO FEB 5 BOTH WERE SCHEDULED TO EXPIRE TOMORROW 9301270126 930127 WHO'S NEWS VESTAR NAMES CROSSLEY CHAIRMAN SAN DIMAS CALIF VESTAR INC NAMED ROGER J CROSSLEY ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER TO THE ADDITIONAL POST OF CHAIRMAN SUCCEDING JOHN D BALDESCHWIELER WHO FOUNDED THE COMPANY IN 1981 MR CROSSLEY 50 YEARS OLD SAID THE APPOINTMENT WILL ALLOW HIM TO DEVOTE MOST OF HIS TIME TO LONGRANGE STRATEGIC WORK MR BALDESCHWIELER 59 BECOMES VICE CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE NEWLY CREATED TECHNOLOGYREVIEW COMMITTEE THE COMPANY HAS REALLY PROGRESSED FROM BASICALLY A GROUP OF SCIENTISTS IN THE '80S TO A COMMERCIAL ENTERPRISE AND NOW IS THE TIME TO POSITION VESTAR TO BUILD A BASE OF NEW PRODUCTS AND NEW TECHNOLOGY SAID MR BALDESCHWIELER WHO IS A PROFESSOR OF CHEMISTRY AT THE CALIFORNIA INSTITUTE OF TECHNOLOGY 9301270125 930127 BUSINESS BRIEF CHRYSLER CORP SHIPMENTS ROSE 22 IN '92 OUTSIDE NORTH AMERICA CHRYSLER CORP HIGHLAND PARK MICH SAID ITS SHIPMENTS TO COUNTRIES OUTSIDE NORTH AMERICA TOTALED 112175 UNITS IN 1992 UP 22 FROM 1991 THE SHIPMENTS ARE A COMBINATION OF BUILTUP EXPORT VEHICLES WHICH ARE FULLY ASSEMBLED BEFORE EXPORT AND COMPLETE KNOCKDOWN UNITS WHICH ARE EXPORTED AS PARTS CHRYSLER HAD SIGNIFICANT GROWTH IN BOTH SEGMENTS CHRYSLER SHIPPED 86398 BUILTUP VEHICLES IN 1992 COMPARED WITH 72570 IN 1991 FOR A 19 INCREASE THE COMPANY CITED NEW MARKETS INCREASED DEMAND FOR CHRYSLER VOYAGER MINIVANS THE STRENGTHENING OF ITS DISTRIBUTOR NETWORK AND SIGNIFICANT SALES GROWTH IN TAIWAN AS THE MAIN REASONS FOR THIS INCREASE 9301270124 930127 WHO'S NEWS COWART GETS TOP POSTS AT AURORA IRVINE CALIF JIM C COWART WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AURORA ELECTRONICS INC AN ELECTRONICS RECYCLER AND RECONDITIONER MR COWART 41 YEARS OLD SUCCEEDS MICHAEL J BLUMENFELD WHO RESIGNED LAST MONTH HE HAS BEEN A DIRECTOR OF AURORA AURORA ALSO NAMED DAVID A LAHAR PRESIDENT AND CHIEF FINANCIAL OFFICER MR LAHAR 35 PREVIOUSLY WAS A MANAGING DIRECTOR IN PAINEWEBBER'S CAPITALMARKETS DIVISION THE SEVENMEMBER BOARD NAMED TWO DIRECTORS AMIN J KHOURY AND DON M MULLER MR KHOURY 53 IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF B/E AEROSPACE INC AND OF APPLIED EXTRUSION TECHNOLOGIES INC HE SUCCEEDS FRANK GORDON WHO RESIGNED MR MULLER 62 WHO HAS BEEN AN INDEPENDENT MANAGEMENT CONSULTANT FILLS MR BLUMENFELD'S SEAT ON THE BOARD 9301270123 930127 LETTERS TO THE EDITOR BLACK LIKE ME CONSERVATIVE LIKE ME I WAS DELIGHTED TO READ YOUR DEC 29 PAGEONE ARTICLE IT'S CLINTON'S TOWN BUT CAPITAL ALSO EYES ARMSTRONG WILLIAMS AS A BLACK CONSERVATIVE IT IS REFRESHING TO READ ABOUT ANOTHER BLACK CONSERVATIVE WHO HAS GAINED SUCH RECOGNITION FOR HIS VIEWS MR WILLIAMS'S VIEW THAT THERE ARE MANY MORE PEOPLE LIKE HIM OUT THERE IS ACCURATE IN FACT IT STRIKES ME AS ODD THAT THE EMERGENCE OF BLACK CONSERVATISM IS SEEN AS A STRANGE PHENOMENON BY MANY WE BLACK CONSERVATIVES SEE NOTHING STRANGE ABOUT ADVOCATING UNITY AMONG AMERICANS RATHER THAN DIVISIVENESS WE SEE NOTHING STRANGE ABOUT THE BENEFITS OF INDIVIDUAL EMPOWERMENT AS OPPOSED TO GOVERNMENT DEPENDENCY AND CERTAINLY THERE CAN BE NOTHING STRANGE IN UNDERSTANDING THAT WITH THE FUNDAMENTAL RIGHTS THAT HAVE BEEN SECURED FOR BLACKS BY THOSE WHO CAME BEFORE US COME FUNDAMENTAL RESPONSIBILITIES TO CONTRIBUTE POSITIVELY TO THE BETTERMENT OF OUR AMERICAN SOCIETY OUR SKIN COLOR IS AN INDELIBLY IMPORTANT PART OF WHO WE ARE AS BLACK AMERICANS THIS IS INDISPUTABLE WHAT CONSERVATIVES ARE SAYING IS THAT WHAT IS TRULY IMPORTANT IS THE MARK WE LEAVE ON OUR SOCIETY AND THE LEGACY WE LEAVE BEHIND FOR US WELFARE CRIME AND BROKEN FAMILIES ARE NO LEGACY AND FOR US THE PEOPLE BEST SUITED TO ALLEVIATE THE PROBLEMS THAT PLAGUE BLACKS ARE BLACKS THEMSELVES THOSE WHO ARE IDEALLY SUITED JUST HAPPEN ALSO TO BE CONSERVATIVES 9301270122 930127 AMID THEIR WAR SERBS BID GOODBYE TO DONALD DUCK DISNEY CHARACTERS' DEPARTURE SPURS SOME SOULSEARCHING AMONG ADULTS KIDS ALIKE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA WHO KILLED DONALD DUCK CRIES THE HEADLINE OF VREME MAGAZINE A COVER CARTOON DEPICTS A PIRATE SHIP SCORING A DIRECT CANNON HIT ON DONALD'S PINFEATHERS THE ANSWER ONE THAT MANY SERBS DON'T WANT TO FACE IS THAT THEY DID THE DEED THEMSELVES PAJA PATAK THAT'S DONALD DUCK IN SERBOCROAT HAS BEEN YANKED FROM THEIR COUNTRY BY HIS CREATOR WALT DISNEY CO WHICH PULLED ITS MICKEY MOUSE CARTOONS AND COMIC BOOKS FROM BELGRADE PUBLISHERS EARLIER THIS MONTH IN COMPLIANCE WITH AMERICAN AND UNITED NATIONS SANCTIONS AFTER 18 MONTHS OF BEING BLAMED FOR MUCH OF THE FEROCIOUS FIGHTING RAGING ACROSS THE FORMER YUGOSLAVIA MANY SERBS HAVE DEVELOPED A DEFIANT ATTITUDE TOWARD THE WORLD'S WRATH ACCUSATIONS OF ATROCITIES AND WAR CRIMES COMMITTED BY SERB SOLDIERS DRAW MAINLY DISBELIEF OR SCORN SANCTIONINDUCED SHORTAGES OF GASOLINE AND HEATING FUEL AND A 6 DAILY INFLATION RATE ONLY INSPIRE PATRIOTISM THREATS OF WESTERN MILITARY INTERVENTION STIR MORE BRAVADO BUT MICKEY AND DONALD HAVE ACCOMPLISHED WHAT THE WORLD'S DIPLOMATS HAVE SO FAR BEEN UNABLE TO DO FOCUS SERBIA'S ATTENTION ON THE CONSEQUENCES OF ITS ACTIONS THE PROSPECT OF LIFE WITHOUT PAJA PATAK MIKI MAUS AND THEIR GOOD FRIEND SILJA GOOFY HAS MADE SERBS FLINCH AND FEEL ALONE IN THE WORLD IN THE CONTEXT OF THE BRUTAL WAR DISNEY'S ACTION MAY SEEM TO BE WELL MICKEY MOUSE BUT IN SERBIA THE WOUND IS DEEP AND REAL WE WILL NEVER BE FORGIVEN FOR CHASING MICKEY OUT SCREAMS A HEADLINE IN NIN MAGAZINE FOR THE FIRST TIME LIFE UNDER SANCTIONS LOOKS DISGUSTING LAMENTS VREME STRIKING A SARCASTIC WETOLDYOUSO TONE YUGOSLAVIA IS BEING FORCED INTO A SPIRITUAL GHETTO DESPITE THE OUTRAGE AND INDIGNATION OF COURSE THE ABSENCE OF DONALD AND MICKEY WON'T ACHIEVE THE MAIN GOAL OF THE SANCTIONS THE CAPITULATION OR OUSTER OF THE CURRENT HARDLINE SERB GOVERNMENT UNLESS KIDS CAN VOTE MY MOTHER TOLD ME DONALD DUCK DIED BECAUSE OF MR MILOSEVIC SAYS 10YEAROLD NATASA TOMIC REFERRING TO SERBIAN PRESIDENT SLOBODAN MILOSEVIC THE MAN MOST OF THE WORLD BLAMES FOR PROPAGATING THE WAR I'M GOING TO MISS HIM SHE SAYS THE CARTOON CHARACTER THAT IS AND NOT MR MILOSEVIC WHO WAS RECENTLY REELECTED BY SERBIA'S ADULTS CHILD PSYCHOLOGISTS AND OTHER ACADEMICS HAVE ENTERED THE DEBATE WARNING ABOUT LASTING EMOTIONAL SCARS AND THE POTENTIAL IMPACT ON SERBIAN SOCIETY WITH MICKEY AND DONALD GONE AS ROLE MODELS THEY WORRY THAT CHILDREN WILL NOW HAVE TO GET THEIR CLUES ON LIFE FROM KNINJA A SERBIAN VERSION OF THE NINJA TURTLES KNINJA IS A CAMOUFLAGECLAD SOLDIER FROM THE SERBIANCONTROLLED TOWN OF KNIN FIGHTING TO SEIZE PARTS OF CROATIA OUR CHILDREN WHO AT BEDTIME WATCH HORRENDOUS TV PICTURES FROM THE WAR WILL BE DEPRIVED OF THE FEW REMAINING DREAMS PROTESTS THE NEWSPAPER POLITIKA WHICH HAD CARRIED DISNEY'S COMIC STRIP SINCE 1932 ON THE DAY THE NEWS OF THE DISNEY BAN BROKE POLITIKA EVEN RAN AN OBITUARY OF MICKEY AND DONALD ALL PEOPLE LOVED DISNEY CARTOONS THE PAPER MOURNED A DISNEY SPOKESMAN SAYS THE ONLY OTHER TIME DISNEY CHARACTERS WERE BANISHED FROM A COUNTRY WAS WHEN EAST GERMANY OUTLAWED MICKEY AS A SYMBOL OF CAPITALIST IMPERIALISM HERE THE CHARACTERS HAD OVER THE YEARS WORKED THEIR WAY INTO THE SERBIAN VERNACULAR UNTIL THE SANCTIONS MICKEY AND DONALD WERE A PROMINENT STAPLE OF BELGRADE'S KIOSKS HOLDING THEIR PLACE AGAINST THE POSTCOMMUNIST PROLIFERATION OF PORN MAGAZINES BELGRADE OPPONENTS SOMETIMES ACERBICALLY REFER TO MR MILOSEVIC AS MICKEY MOUSE PICKING UP THE PHRASE FROM MILAN PANIC THE SERBBORN AMERICAN BUSINESSMAN WHO UNSUCCESSFULLY RAN FOR PRESIDENT LAST MONTH AND WHO BLASTED THE MILOSEVIC GOVERNMENT FOR ITS MICKEY MOUSE POLITICS YET THE POLITICIANS THEMSELVES SEEM JUST AS UNHAPPY AS EVERYBODY ELSE ABOUT THE CHARACTERS' DEPARTURE BY EXPELLING DONALD DUCK FUMES RATKO BOZOVIC SERBIA'S CULTURE MINISTER THE US IS STARTING A WAR AGAINST OUR FUTURE MEANWHILE NOVELIST VLADA BULATOVIC WRITING IN VREME COMPLAINS AMERICA HAS FORCED DONALD DUCK AND MICKEY MOUSE TO BE MARINES THE DEPARTURE OF MICKEY AND DONALD HAS EVEN TRIGGERED AN ANIMATED DEBATE ABOUT WHO WAS BETTER THE MOUSE OR THE DUCK IT RAGES ON EDITORIAL PAGES AND ON THE STREETS COMPARED WITH THE ALLAMERICAN GUY MICKEY THE STUPID' DUCK WAS ALWAYS MORE DEAR TO OUR READERS RECKONS VREME IN A TONGUEINCHEEK COMMENTARY MICKEY'S ATTITUDE WAS ALWAYS THE AMERICAN WAY OF LIFE YUK BUT DONALD DUCK IS DIFFERENT LIKE ALL HUMANS HE HAS HIS VICES HE WAS ALWAYS MORE INTERESTING THAN THE BORING OLD MOUSE EATING POPCORN ON BELGRADE'S MAIN SHOPPING STREET 13YEAROLD ANDRIJANA ABROCIC AGREES I LIKE DONALD SHE SAYS HE'S ALWAYS UNHAPPY AND ACTS MORE LIKE REAL PEOPLE MICKEY IS ALWAYS SUCCESSFUL I DON'T LIKE THAT HER FRIEND 13YEAROLD SONJA TOMIC VOTES FOR MICKEY HE'S THE BEST SHE ARGUES HE'S FUNNY MINNIE TOO MICKEY AND DONALD WON'T TOTALLY DISAPPEAR FROM SERBIA POLITIKA IS TALKING ABOUT RELEASING OLD DISNEY COMIC BOOKS NEWSPAPER VENDORS EXPECT BOOTLEG COPIES OF DISNEY COMICS TO BE SMUGGLED IN FROM ARCHENEMY CROATIA AND AS THE PRICE OF THE REAL COMICS SOARED WITH INFLATION A MONTHLY MICKEY MOUSE COMIC COST 12 BEFORE THE SANCTIONS MANY FAMILIES BEGAN DRAWING THEIR OWN ANYWAY IT'S A SHAME DONALD AND MICKEY ARE GONE BUT THE KIDS STILL HAVE THEIR DADDY AND HE'S A GOOD DRAWER SAYS SLAVKA ZEKOVIC DOING HER MORNING SHOPPING WITH HER TWO CHILDREN VLADIMIR 10 AND BILJANA 6 LOOK DUBIOUS THE DISNEY CHARACTERS ARE BETTER SAYS VLADIMIR BACK IN BURBANK CALIF A SPOKESMAN AT DISNEY HEADQUARTERS SOOTHES ANGRY SERBIANAMERICAN CALLERS BY ACKNOWLEDGING THAT DISNEY'S ACTION IS ANOTHER TRAGEDY OF THE WAR WE WANT MICKEY TO COME BACK AS MUCH AS THEY DO SAYS THE SPOKESMAN BUT THAT'S LITTLE CONSOLATION TO SERBIA'S CHILDREN BY THE TIME THE CARTOONS COME BACK I'LL BE TOO OLD FOR THEM MUSES MISS ABROCIC FOURYEAROLD ISKRA KNEZEVIC WEARING A MICKEY AND MINNIE SWEATSHIRT IS GOBBLING DOWN FRENCH FRIES AT HER OTHER FAVORITE AMERICAN INSTITUTION MCDONALD'S SHE WANTED TO HAVE A HAMBURGER TOO BUT SANCTIONS HAVE PUSHED PRICES BEYOND HER MOTHER'S BUDGET VERA KNEZEVIC SAYS ISKRA REPEATEDLY ASKS WHEN MICKEY AND DONALD WILL BE BACK MRS KNEZEVIC TRIES TO EXPLAIN THAT THE SANCTIONS WON'T LAST FOREVER BUT THE EXPLANATIONS DON'T SEEM TO DO MUCH GOOD 9301270121 930127 WHO'S NEWS MEDEX INC MEDEX INC HILLIARD OHIO C CRAIG WALDBILLIG 66 YEARS OLD WILL STEP DOWN AS CHIEF EXECUTIVE OFFICER FORESHADOWING HIS EVENTUAL RETIREMENT THE COMPANY SAID THE FOUNDER OF THIS MAKER OF DISPOSABLE MEDICAL PRODUCTS HE WILL RETAIN THE POSTS OF CHAIRMAN OF THE BOARD AND CHAIRMAN OF THE FINANCE AND EXECUTIVE COMMITTEES MEDEX SAID IT IS CONSIDERING INTERNAL CANDIDATES AS WELL AS LOOKING OUTSIDE THE COMPANY FOR A NEW CHIEF EXECUTIVE 9301270120 930127 INTERNATIONAL BRIEF SOCIETE NATIONALE ELF AQUITAINE FRENCH COMPANY'S NET FELL 37 IN 1992 TO 116 BILLION LAST YEAR'S STORMY OIL INDUSTRY CONDITIONS BATTERED FRANCE'S SOCIETE NATIONALE ELF AQUITAINE KNOCKING 1992 NET INCOME DOWN 37 TO 62 BILLION FRANCS 116 BILLION PRELIMINARY RESULTS SHOW ELF CHAIRMAN LOIK LE FLOCHPRIGENT WARNED THAT HE ISN'T COUNTING ON A LETUP IN 1993 A PLUNGE IN BRENT CRUDE OIL PRICES TO 13 TO 14 A BARREL FROM THE CURRENT 175018 IS A DISTINCT POSSIBILITY HE SAID AT A NEWS CONFERENCE STILL HE INSISTED BY TRIMMING ITS BUDGET 10 IN 1993 AND EMPHASIZING NEARTERM PROFITABILITY THE STATECONTROLLED COMPANY ONE OF FRANCE'S LARGEST IS DETERMINED TO BRING ITS PROFITS UP WE HAVE TRIMMED OUR SAILS FOR HEAVY WEATHER 9301270119 930127 BUSINESS BRIEF BARNES GROUP INC FIRM WILL POST LOSS FOR YEAR AFTER CHARGE OF 407 MILLION BARNES GROUP INC SAID IT WILL REPORT A LOSS FOR 1992 AFTER A ONETIME CHARGE OF 407 MILLION OR 656 A SHARE TO REFLECT THE ADOPTION OF THREE ACCOUNTING STANDARDS THE ACCOUNTING RULES ARE FOR PROJECTED COSTS OF POSTRETIREMENT MEDICAL BENEFITS POSTEMPLOYMENT MEDICAL BENEFITS AND FOR TREATMENT OF INCOME TAXES THE BRISTOL CONN MAKER OF SPRINGS AND OTHER INDUSTRIAL COMPONENTS SAID THAT IN ADDITION TO THE 407 MILLION CUMULATIVE CHARGE ITS 1992 NET INCOME WILL BE REDUCED BY AN ADDITIONAL 14 MILLION OR 23 CENTS A SHARE FOR THE ONGOING ANNUAL COST OF THE ACCOUNTING TREATMENT IN 1991 BARNES HAD NET OF 159 MILLION OR 260 A SHARE ON SALES OF 5357 MILLION MOST OF THE CHARGE 397 MILLION IS FOR THE POSTRETIREMENT BENEFIT COSTS 9301270118 930127 BUSINESS BRIEF PACCAR INC NET ROSE 31 ON SALES GAIN OF 23 IN THE 4TH QUARTER PACCAR INC SAID FOURTHQUARTER NET INCOME ROSE 31 TO 251 MILLION OR 74 CENTS A SHARE BECAUSE OF INCREASING DEMAND FOR ITS TRUCKS THAT COMPARES WITH 192 MILLION OR 57 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 23 TO 732 MILLION FROM 5962 MILLION NET INCOME FOR THE YEAR ROSE 18 TO 652 MILLION OR 193 A SHARE FROM 552 MILLION OR 163 A SHARE A YEAR EARLIER REVENUE CLIMBED 19 TO 258 BILLION FROM 216 BILLION THE COMMERCIAL TRUCK MAKER BASED IN BELLEVUE WASH SAID SALES OF ITS KENILWORTH AND PETERBILT TRUCKS TO CANADA AUSTRALIA AND THE UNITED KINGDOM IMPROVED WHILE SALES TO ITS MEXICAN AFFILIATE VILPAC SA DECLINED 9301270116 930127 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 AMERICAN ANNUITY GROUP INC 125 MILLION OF 10YEAR SENIOR SUBORDINATED NOTES DUE FEB 1 2003 PRICED AS 11 1/8 AT PAR TO YIELD 11125 RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP CHASE MANHATTAN CORP 200 MILLION OF SUBORDINATE NOTES DUE FEB 1 2003 PRICED AT PAR TO YIELD 75 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 107 BASIS POINTS ABOVE THE 10YEAR TREASURY NOTE RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MIDWEST POWER SYSTEMS INC 100 MILLION OF NOTES DUE FEB 15 2005 PRICED AS 7 AT 99466 TO YIELD 7066 RATED A2 BY MOODY'S AND SINGLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC MIDWEST POWER IS A UNIT OF MIDWEST RESOURCES INC PACIFIC BELL 400 MILLION OF 40YEAR DEBENTURES DUE FEB 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP LED BY LEHMAN BROTHERS INC AND REOFFERED AS 750 AT 96913 TO YIELD 7751 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 55 BASIS POINTS OVER THE 30YEAR TREASURY BOND THE ISSUE WAS RATED DOUBLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP PENNSYLVANIA POWER & LIGHT CO 300 MILLION OF NOTES AND BONDS PRICED IN TWO PARTS A 100 MILLION ISSUE OF NOTES DUE FEB 1 2003 PRICED AS 6875 AT 99465 TO YIELD 695 A 50 BASIS POINT SPREAD OVER THE 10YEAR TREASURY NOTE A 200 MILLION ISSUE OF BONDS DUE FEB 1 2023 PRICED AS 7875 AT 9926 TO YIELD 794 A 70 BASIS POINT SPREAD OVER THE 30YEAR TREAURY BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PUBLIC SERVICE ELECTRIC & GAS CO 150 MILLION OF NOTES DUE JAN 1 2003 WON IN COMPETITIVE BIDDING BY A GROUP LED BY GOLDMAN SACHS & CO AND REOFFERED AS 6875 AT 99387 TO YIELD 6959 THE NONCALLABLE NOTES WERE PRICED AT A 50 BASIS POINT SPREAD ABOVE THE 10YEAR TREASURY NOTE THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P PSE&G IS A SUBSIDIARY OF PUBLIC SERVICE ENTERPRISE GROUP INC PUBLIC SERVICE ELECTRIC & GAS CO 100 MILLION FIRST AND REFUNDING MORTGAGE NOTES DUE JAN 1 1998 WON IN COMPETITIVE BIDDING BY MERRILL LYNCH & CO AND REOFFERED AS 6 AT 9965 TO YIELD 6082 A 40 BASIS POINT SPREAD OVER THE FIVEYEAR TREASURY NOTE THE ISSUE WAS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P RALSTON PURINA CO 175 MILLION OF 30YEAR DEBENTURES DUE FEB 1 2023 PRICED AS 8 1/8 AT 99278 TO YIELD 819 A 93 BASIS POINT SPREAD ABOVE THE 30YEAR TREASURY BOND RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC SERVICE CORP INTERNATIONAL 150 MILLION OF DEBENTURES DUE FEB 1 2013 PRICED AS 7875 AT PAR TO YIELD 7875 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 66 BASIS POINTS OVER TREASURYS RATED A3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TIME WARNER INC 1 BILLION OF 30YEAR DEBENTURES DUE FEB 1 2023 PRICED AS 915 AT PAR TO YIELD A SPREAD OF 193 BASIS POINTS ABOVE THE 30YEAR TREASURY BOND RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CALGENE INC TWO MILLION COMMON SHARES PRICED AT 1475 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC DR PEPPER/SEVENUP COS INITIAL 205 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO GENESIS HEALTH VENTURES INC 29 MILLION COMMON SHARES PRICED AT 16625 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO LINCOLN NATIONAL CORP FOUR MILLION COMMON SHARES PRICED AT 7125 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO AND MERRILL LYNCH & CO MUNICIPAL PARTNERS FUND INC 55 MILLION COMMON SHARES OFFERED AT 15 A SHARE PARAGON TRADE BRANDS INC INITIAL 10 MILLION COMMON SHARES PRICED AT 19 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TELIOS PHARMACEUTICALS INC 45 MILLION COMMON SHARES SOLD WITH 4 MILLION SHARES SOLD THROUGH THE COMPANY'S UNDERWRITERS AT 6 A SHARE AND 500000 SOLD DIRECTLY TO ELI LILLY & CO AT 8 A SHARE HAMBRECHT & QUIST INC AND PRUDENTIAL SECURITIES INC ARE UNDERWRITERS FOR THE OFFERING GRAND RIVER DAM AUTHORITY OKLA 7607 MILLION SERIES 1992 REVENUE REFUNDING BONDS PRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP YIELDS RANGE FROM 275 IN 1993 TO 610 IN 2009 AND 2010 BONDS DUE IN 2008 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE REST HAVE BEEN RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P JACKSONVILLE FLA ELECTRIC AUTHORITY 1298 MILLION 1993A ELECTRIC SYSTEM REVENUE BONDS PRICED BY A JP MORGAN SECURITIES INC GROUP YIELDS RANGE FROM 45 IN 1998 TO 615 IN 2028 THE BONDS HAVE BEEN RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P LOS ANGELES COUNTY 1163 MILLION 1993 CERTIFICATES OF PARTICIPATION FOR THE WALT DISNEY PARKING PROJECT PRICED BY A FIRST BOSTON CORP GROUP YIELDS FOR THE CERTIFICATES RANGE FROM 5 IN 1997 TO 690 IN 201620 THE SECURITIES ARE DUE ON BOTH MARCH 1 AND SEPT 1 OF EACH YEAR THE ISSUE INCLUDES ABOUT 596 MILLION OF ZEROCOUPON SECURITIES WHICH ARE DUE IN 200020 MOODY'S RATED THE ISSUE CONDITIONAL SINGLEA S&P ASSIGNED A PROVISIONAL SINGLEA RATING AND FITCH INVESTORS SERVICE INC ASSIGNED A SINGLEAPLUS RATING NEBRASKA PUBLIC POWER DISTRICT 3427 MILLION 1993 POWER SUPPLY SYSTEM REVENUE BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 310 IN 1994 TO 623 IN 2015 THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P NEW YORK STATE MORTGAGE AGENCY 144 MILLION FIFTEENTH SERIES MORTGAGE REVENUE BONDS HAVE BEEN PRICED BY A BEAR STEARNS & CO GROUP THIS ISSUE WHICH IS FEDERALLY TAXABLE INCLUDES THE FOLLOWING 50 MILLION 500S AT PAR TO YIELD 500 IN 2005 35 MILLION 660S AT PAR TO YIELD 660 IN 2010 25 MILLION 735S AT PAR TO YIELD 735 IN 2012 AND 34 MILLION 820S AT PAR TO YIELD 820 IN 2014 MOODY'S RATED THE ISSUE DOUBLEA PENNSYLVANIA FINANCE AUTHORITY 2108 MILLION MUNICIPAL CAPITAL IMPROVEMENT REVENUE REFUNDING BONDS PRICED BY MANAGING UNDERWRITER COMMONWEALTH SECURITIES & INVESTMENTS INC PITTSBURGH THE BONDS ARE 650S PRICED AT PAR TO YIELD 650 ON NOV 1 2009 S&P RATED THE ISSUE SINGLEA PHILADELPHIA HOSPITALS AND HIGHER EDUCATION FACILITIES AUTHORITY 53 MILLION SERIES 1993 HOSPITAL REVENUE BONDS PRICED BY A KIDDER PEABODY & CO GROUP YIELDS RANGE FROM 3 IN 1993 TO 67 IN 2019 THE BONDS HAVE BEEN RATED SINGLEAMINUS BY S&P SNOHOMISH COUNTY WASH PUBLIC UTILITY DISTRICT NO 1 44677 MILLION SERIES 1993 GENERATION SYSTEM REVENUE BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP YIELDS RANGE FROM 275 IN 1994 TO 622 IN 2018 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S S&P AND FITCH ASIDE FROM THE 2020 SECURITIES BONDS ARE CALLABLE ON JAN 1 2003 AT A PRICE OF 102 AND WILL DECLINE TO PAR ON JAN 1 2005 THE 2020 BONDS ARE CALLABLE AT PAR ON JAN 1 2003 FEDERAL NATIONAL MORTGAGE ASSOCIATION 225 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1993G7 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES TRUST 205 WHICH IS COLLATERALIZED WITH 9 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2775 YEARS CREDIT FONCIER DE FRANCE FRANCE 500 MILLION MARKS OF 7 1/4 EUROBONDS DUE FEB 26 2003 AT ISSUE PRICE 102275 VIA DEUTSCHE BANK AG REOFFERED AT 9960 TO YIELD A SPREAD OF 20 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT ISSUE FEES 3 CREDITO ITALIANO ITALY 150 MILLION OF FLOATINGRATE NOTES DUE FEB 16 2000 AT ISSUE PRICE PAR VIA KIDDER PEABODY SECURITIES LTD INTEREST FLOATS AT A MARGIN OF 3/8 POINT ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 016 DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 200 MILLION MARKS OF REVERSE FLOATING RATE NOTES VIA DEUTSCHE BANK AG INTEREST PAID AT 8 1/2 IN FIRST YEAR 8 IN SECOND YEAR AND AT 13 MINUS SIXMONTH MARK LIBOR FOR YEARS THREE THROUGH 10 ISSUE PRICE 10130 GUARANTOR DEUTSCHE BANK AG FEES 145 EAGLE 5 LTD SPECIAL PURPOSE VEHICLE 6127 MILLION ASSETBACKED OFFERING VIA DAIWA EUROPE LTD BONDS BACKED BY PAPER ISSUED BY SEVERAL US GOVERNMENT AGENCIES INCLUDING FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL HOME LOAN CORP AND RESOLUTION TRUST CORP HELD IN TRUST INTEREST PAID AT 80 BASIS POINTS ABOVE SIXMONTH LIBOR ISSUE PRICE PAR FEES 1 GENERAL ELECTRIC CAPITAL CORP US PARENT 200 MILLION MARKS OF REVERSE FLOATING RATE EURONOTES DUE FEB 24 2003 VIA INDUSTRIEBANK VON JAPAN DEUTSCHELAND AG INTEREST PAID AT 9 IN FIRST YEAR 8 IN SECOND AND AT 12 7/8 MINUS SIXMONTH LIBOR IN YEARS THREE THROUGH 10 FEES 195 MAEDA CORP JAPAN 200 MILLION OF 2 1/2 EUROBONDS DUE FEB 19 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD EACH 5000 BOND CARRIES ONE WARRANT EXERCISABLE FROM MARCH 4 1992 TO FEB 5 1997 TO BUY COMPANY SHARES AT EXPECTED 2 1/2 PREMIUM ABOVE CLOSING SHARE PRICE ON FEB 2 WHEN FINAL TERMS FIXED FEES 2 1/2 PROVINCE OF ALBERTA CANADA 500 MILLION OF 7 EUROBONDS DUE FEB 18 2003 AT A REOFFER PRICE OF 9956 VIA JP MORGAN SECURITIES LTD YIELD 706 ANNUALLY SPREAD 47 BASIS POINTS ABOVE 10YEAR US TREASURY NOTE FEES 0325 9301270114 930127 COMPAQ'S 4THQUARTER PROFIT ROSE 34 CAPPING COMEBACK FOR COMPUTER MAKER BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP CAPPING A YEAR OF REVIVAL SAID ITS FOURTHQUARTER PROFIT JUMPED 34 ON RECORD SALES THE HOUSTON PERSONAL COMPUTER MAKER'S STOCK PRICE SOARED AFTER THE EARNINGS WERE REPORTED CREATING A GLUT OF BUY ORDERS THAT TEMPORARILY OUTPACED TRADERS' ABILITY TO PROCESS THEM IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE COMPAQ CLOSED AT 56625 A SHARE UP 1875 COMPAQ HAD FOURTHQUARTER PROFIT OF 89 MILLION OR 110 A SHARE COMPARED WITH 67 MILLION OR 77 CENTS A SHARE FOR THE YEAREARLIER QUARTER SALES ROSE 63 TO 14 BILLION FROM 873 MILLION ANALYSTS TRACED THE SURGE IN COMPAQ'S STOCK TO A BETTERTHANEXPECTED SHOWING IN THE FOURTH QUARTER MOST PERSHARE ESTIMATES WERE ABOUT 10 CENTS TOO LOW AND TO HINTS THAT THE TRADITIONALLY SLOW FIRST QUARTER WILL SET MORE RECORDS THANKS TO A HEAVY LOAD OF UNFILLED ORDERS WE'RE STILL CARRYING A SIGNIFICANT BACKLOG INTO THE FIRST QUARTER SAID ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE IN AN INTERVIEW WE ARE OFF TO A GOOD START HE SAID THE COMPANY'S SUPPLY PROBLEMS WHICH HAVE DOGGED COMPAQ FOR ABOUT SEVEN MONTHS ARE EXPECTED TO EASE BY THE END OF MARCH BASED ON COMMENTS FROM THE COMPANY SANJIV G HINGORANI AN ANALYST AT NOMURA RESEARCH INSTITUTE AMERICA IN NEW YORK RAISED HIS ESTIMATES OF COMPAQ'S FIRSTQUARTER PROFIT BY MORE THAN 40 TO 107 A SHARE NEARTERM THINGS LOOK GREAT MR HINGORANI SAID BY DAY'S END MOST OTHER COMPAQ ANALYSTS ALSO MOVED TO BOOST THEIR FIRSTQUARTER NUMBERS INDEED COMPAQ WHICH THIS TIME LAST YEAR WAS STILL LIMPING THROUGH THE OUSTER OF ITS COFOUNDER AND THE FIRST LAYOFFS IN ITS 10YEAR HISTORY IS TODAY CONSIDERED BY MOST ANALYSTS TO BE AMONG THE LEADERS OF A NEW SHRINKING PACK OF COMPUTERINDUSTRY WINNERS BECAUSE OF A LOWPRICED PRODUCT LINE AND AN AGGRESSIVE MASSMARKET DISTRIBUTION STRATEGYALL INTRODUCED IN THE PAST YEARMOST INDUSTRY WATCHERS SAY COMPAQ IS EXPECTED TO CONTINUE STEALING BUSINESS AWAY FROM A SECOND TIER OF PC CLONE COMPANIES THAT HAS BEEN HAMMERED BY FALLING PRICES AND RAZORTHIN MARGINS ALEX BROWN & SONS INC IN A NEW STUDY OF COMPUTERINDUSTRY MARKET SHARE SAID THE DIFFERENTIATION BETWEEN FIRSTTIER AND SECONDTIER COMPANIES WILL SHARPEN THIS YEAR WITH THE NATION'S TOP FIVE MAKERS OF IBMCOMPATIBLE PCS COMMANDING ONETHIRD OF ALL UNIT SHIPMENTS UP FROM 23 IN 1991 YOU'VE GOT TO START ASKING YOURSELF IF SOME OF THESE SMALLER GUYS ARE GOING TO BE IN BUSINESS DOWN THE ROAD SAID WILLIAM C CONROY AN ANALYST AT WILLIAMS MACKAY JORDAN & CO IN HOUSTON WHILE MOST ANALYSTS ARE CERTAIN THAT THE INDUSTRY'S SEPARATION INTO DISTINCT CAMPS WILL CONTINUE THROUGHOUT THE YEAR THEY ARE LESS CONVINCED THAT THE PRICEDRIVEN BOOM IN SALES AT COMPAQ AND ELSEWHERE WILL HOLD UP INTO THE SUMMER RIGHT NOW THERE SEEMS TO BE NO END TO THIS DEMAND SAID MR HINGORANI ONCE A MARKETING MANAGER FOR THE COMPUTER CHIP COMPANY INTEL CORP THE REALITY IS THERE IS AN END THINGS GET VERY MURKY AFTER THE FIRST QUARTER ALTHOUGH MR PFEIFFER SAID HE IS CONVINCED US PERSONAL COMPUTER DEMAND WILL STAY STRONG THROUGHOUT THIS YEAR COMPAQ NEVERTHELESS IS LOOKING FOR WAYS TO EXPAND ITS REVENUE BASE BEYOND COMPUTER HARDWARE PRODUCTS MR PFEIFFER SINGLED OUT COMPUTER SOFTWARE AS ONE POTENTIAL GROWTH AREA SINCE THE COMPANY ALREADY RESELLS SOFTWARE PROGRAMS BUNDLED WITH COMPAQ PCS THE PHENOMENON OF HARDWARE MANUFACTURERS SHIPPING MILLIONS OF PCS IS A MAJOR VEHICLE FOR SOFTWARE DELIVERY MR PFEIFFER SAID THAT IS CERTAINLY A STARTING POINT FOR THE FULL YEAR COMPAQ EARNED 213 MILLION OR 252 A SHARE COMPARED WITH 131 MILLION OR 149 A SHARE IN 1991 SALES FOR THE YEAR ROSE 25 TO 41 BILLION FROM 33 BILLION 9301270113 930127 SEC'S HEYMAN TO QUIT POST AT MARKET REGULATION UNIT SPECIAL TO THE WALL STREET JOURNAL WASHINGTON WILLIAM HEYMAN DIRECTOR OF THE MARKET REGULATION DIVISION AT THE SECURITIES AND EXCHANGE COMMISSION SAID HE WILL RESIGN MR HEYMAN WAS APPOINTED DIRECTOR OF THE DIVISION IN MAY 1991 AFTER SERVING AS DEPUTY DIRECTOR SINCE FEBRUARY OF THAT YEAR HIS RESIGNATION IS EFFECTIVE MARCH 18 IN A STATEMENT THE SEC SAID MR HEYMAN WILL PROBABLY RETURN TO THE PRIVATE SECTOR BEFORE JOINING THE AGENCY HE WAS A MANAGING DIRECTOR AND MANAGER OF THE ARBITRAGE DEPARTMENT AT SMITH BARNEY HARRIS UPHAM & CO THE MARKET REGULATION DIVISION IS RESPONSIBLE FOR REGULATING BROKERAGE COMPANIES AND THE SECURITIES EXCHANGES SEC CHAIRMAN RICHARD BREEDEN SAID IN THE STATEMENT THAT UNDER MR HEYMAN'S LEADERSHIP THE DIVISION HAS BEGUN A THOROUGH REEXAMINATION OF ISSUES OF FUNDAMENTAL MARKET STRUCTURE 9301270111 930127 FAMILYLEAVE BILL PASSES SENATE PANEL BY 134 VOTE WASHINGTON THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE APPROVED A BILL REQUIRING LARGE COMPANIES TO GIVE WORKERS UNPAID LEAVE FOR A FAMILY OR MEDICAL EMERGENCY PUSHING IT SWIFTLY TOWARD APPROVAL BY CONGRESS YESTERDAY'S VOTE WAS 134 WITH THREE REPUBLICANS JOINING DEMOCRATIC SUPPORTERS AN IDENTICAL BILL IS EXPECTED TO PASS A SIMILAR HOUSE COMMITTEE TODAY THE LEGISLATION WHICH WAS VETOED BY FORMER PRESIDENT BUSH HAS STRONG SUPPORT FROM THE CLINTON ADMINISTRATION THE BILL WOULD REQUIRE ANY COMPANY WITH 50 OR MORE EMPLOYEES WHICH COVERS 5 OF US COMPANIES AND ABOUT HALF OF ALL WORKERS TO OFFER WORKERS AS MUCH AS 12 WEEKS OF UNPAID LEAVE AFTER CHILDBIRTH OR ADOPTION OR FOR THE SERIOUS ILLNESS OF AN EMPLOYEE OR A FAMILY MEMBER EMPLOYERS WOULD HAVE TO CONTINUE TO PROVIDE HEALTHCARE COVERAGE AND GUARANTEE EMPLOYEES EITHER THE SAME JOB OR A COMPARABLE POSITION AFTER THEY RETURN TO WORK EMPLOYERS CAN EXEMPT THEIR HIGHESTPAID 10 OF WORKERS AS WELL AS EMPLOYEES WHO WORK 25 HOURS OR LESS 9301270110 930127 MARKETING & MEDIA ADVERTISING LEE ADS AIM AT BIGGER TARGET PUDGY PEOPLE WHO WEAR JEANS BY KEVIN GOLDMAN FOR YEARS JEANS ADS HAVE FEATURED AN ARRESTING PROCESSION OF PERFECT MEN AND WOMEN WITH THEIR ULTRASVELTE WELLTONED BODIES TOPPED BY IMPOSSIBLY GOOD LOOKS BUT LEE APPAREL JEANS IS STRETCHING THAT NOTION BY MAKING A PITCH FOR THE REST OF US FOLKS WHO HAVE GOTTEN A BIT TOO ROUND AROUND THE MIDDLE AND HAVE TO FORCE THEMSELVES INTO AN EVERTIGHTER PAIR OF PANTS LEE PLANS TO STEP UP ITS EFFORTS IN THIS PAUNCHY PURSUIT WITH TWO NEW COMMERCIALS THAT WILL AIR THIS SUNDAY DURING SUPER BOWL XXVII MORE SPOTS PLACED IN SUCH HIGHPROFILE TELEVISION EVENTS AS THE ACADEMY AWARDS AND THE GRAMMY AWARDS ARE COMING UP WE'RE SPENDING MORE THAN WE HAVE IN OUR 103YEAR HISTORY TO GET A LEG UP ON SUCH RIVALS AS LEVI STRAUSS AND PUSH THE NEW LINE OF RELAXED JEANS SAYS JOSEPH ELLES VICE PRESIDENT OF MARKETING FOR THE LEE BRAND WHICH IS OWNED BY VF CORP LAST YEAR THE LEE BRAND SPENT ABOUT 15 MILLION ON ADVERTISING AND THE COMPANY WON'T SAY HOW MUCH THE BUDGET WILL GROW IN 1993 BUT LEE FIGURES ITS TONGUEINCHEEK MESSAGE AIMED AT THE SNACKMUNCHING PUDGY SET IS WORTH THE EXTRA BUCKS IN THE SUPER BOWL AD LEE INTRODUCES ITS LATEST SAD SACK WHO HAS TO SUCK IN HIS GUT TO STEP INTO HIS PANTS THE POOR FELLOW HUFFS AND PUFFS SO INTENSELY THAT CLOTHING IN DRESSER DRAWERS FLY OUT AND A CANARY IS YANKED FROM ITS CAGE AND SUCKED INTO HIS MOUTH TROUBLE GETTING INTO YOUR JEANS THE VOICEOVER ASKS MOCKINGLY THE COMMERCIAL IS THE NEWEST INSTALLMENT IN A SERIES OF WHAT WILL BE SIX ADS DEPICTING EMBARRASSING MOMENTS IN DRESSING THE FIRST OF WHICH BEGAN LAST SUMMER DURING THE OLYMPICS IN A PREVIOUS SPOT A BUTTON POPS OFF A FATHER'S JEANS AND RICOCHETS AROUND THE FAMILY ROOM ENDANGERING POP HIS TWO KIDS AND THE FAMILY POOCH IN ANOTHER A WOMAN TAKES SO LONG POURING HERSELF INTO HER JEANS THAT BY THE TIME SHE GETS DOWNSTAIRS TO MEET HER DATE HE HAS MARRIED HER ROOMMATE THIS CAMPAIGN IS ABOUT REAL LIFE SAYS MR ELLES VIRTUALLY EVERYONE HAS GOTTEN OUT OF BED ONE MORNING AND FOUND THEIR CLOTHES ARE TOO TIGHT THIS IS POKING FUN AT SOMETHING THAT MOST PEOPLE CAN IDENTIFY WITH THE AD ALSO SPEAKS TO NATURAL BODY CHANGES SAYS MR ELLES AT 40 YEARS OLD A GUY CAN STILL WEIGH THE SAME 185 POUNDS HE DID WHEN HE WAS 25 YEARS OLD BUT THE WEIGHT IS IN DIFFERENT PLACES HE SAYS JOSEPH G SMITH OF OXTOBY SMITH A CONSUMER MARKETING FIRM PRAISES THE CAMPAIGN BY CALLING IT ONE FILLED WITH WIT AND CHARM YOU CAN COMMUNICATE SOMETHING THAT RESONATES WITH MY REALITY AND YET NOT BE THREATENING IT'S THE RARE AND BRAVE COMPANY THAT SHOWS ITS PRODUCT BEING USED BY REAL PEOPLE WITH REAL PAUNCHES EVEN LEE HOWEVER WILL TAKE THE PAUNCH APPROACH ONLY SO FAR IT GOES TO GREAT LENGTHS TO MAKE MEN THE BUTT OF THE JOKE AND IS CAREFUL TO AVOID OFFENDING WOMEN LEE CLAIMS TO BE THE NO 1 BRAND AMONG WOMEN AND SAYS LEVI IS NO 1 AMONG MEN AND LEVI STRAUSS CONCURS IN FACT IN ANOTHER HALFMINUTE SPOT SCHEDULED FOR DEBUT DURING THE SUPER BOWL A MAN IN A CONVERTIBLE SPORTS CAR PULLS UP TO A HOUSE TO PICK UP HIS COMELY DATE WATCHING HER THROUGH A SHADECOVERED WINDOW AS SHE TRIES TO SQUEEZE INTO HER JEANS BUT THE WOMAN DOESN'T HAVE AN OUNCE OF FAT ON HER MEN HAVE BEEN THE TERRITORY FOR LEVIS BUT LEE MADE ITS FRANCHISE WITH WOMEN WE HAVE TO BE REAL CAREFUL NOT TO OFFEND THEM SAYS MIKE LESCARBEAU THE WRITER OF THE SPOTS WHICH TARGET THE 25PLUS AGE GROUP AND WERE CREATED BY MINNEAPOLISBASED FALLON MCELLIGOTT KEVIN BERIGAN MANAGEMENT SUPERVISOR ON THE ACCOUNT SAYS OF THE PUDGY ACTOR FEATURED IN THE CANARY SPOT HE OBVIOUSLY WASN'T SOMEONE OFF A CALVIN KLEIN SHOOT IT WOULD BE LOGICAL TO ASSUME THAT BULGING BABY BOOMERS WOULD BE SITTING DUCKS FOR OTHER MARKETERS BUT EXECUTIVES AT LEE AND FALLON MCELLIGOTT SAY THE JEANS COMPANY IS ONE OF THE FEW NATIONAL ADVERTISERS TAPPING INTO THE FEARS OF YUPPIES WHO ENGAGE IN CONSPICUOUS CULINARY CONSUMPTION LEE SAYS IT HAS RECEIVED POSITIVE FEEDBACK FROM THE SPOTS SO OBVIOUSLY CONSUMERS DON'T FIND THE SALES PITCH UNAPPETIZING THE JEANS INDUSTRY WHICH ANALYSTS ESTIMATE TOTALED 73 BILLION FOR 430 MILLION PAIRS LAST YEAR IS HOTLY COMPETITIVE WITH EACH COMPANY WELL HOPING TO BEAT THE PANTS OFF THE OTHER ACCORDING TO DEBORAH BRONSTON AN ANALYST WITH PRUDENTIAL SECURITIES VF CORP RANKED NO 1 IN TOTAL JEANS SALES WITH 309 OF THE MARKET WITH ITS WRANGLER RUSTLER AND LEE BRANDS LEE ACCOUNTED FOR 121 OF THE TOTAL MARKET LEVIS WAS NO 2 WITH 19 TO 20 OF THE MARKET LEE FIRST INTRODUCED THE HUMOROUS COMMERCIALS DURING THE SUMMER OLYMPICS AND THE AGENCY ALLEGES IT HAS MANY MORE SCENARIOS FOR MEN TO CRAM INTO THEIR PANTS CLEARLY THOUGH HUMOR ISN'T FOR EVERYONE A SPOKESWOMAN FOR LEVI STRAUSS SNIFFS PEOPLE WEAR LOOSE JEANS FOR FASHION AND NOT NECESSARILY BECAUSE THEY'RE OUT OF SHAPE LUCIANO BENETTON THE FOUNDING FATHER OF THE BENETTON GROUP FASHION EMPIRE APPEARS IN THE RAW IN A NEW AD CAMPAIGN PART OF AN INTERNATIONAL USEDCLOTHING DRIVE BENETTON PLANS TO START NEXT WEEK A BESPECTACLED MR BENETTON 57 YEARS OLD STANDS NUDE WITH HIS HANDS MODESTLY CLASPED AT GROIN LEVEL IN THE NEWSPAPER ADS RELEASED YESTERDAY THE FIRST AD IS CAPTIONED I WANT MY CLOTHES BACK A SECOND TAGGED EMPTY YOUR CLOSETS ALSO TELLS CONSUMERS HOW TO TAKE PART IN THE DRIVE THROUGH BENETTON STORES IN 83 COUNTRIES BENETTON SAID IT WILL DONATE THE CLOTHES TO INTERNATIONAL RELIEF ORGANIZATIONS SUCH AS THE RED CROSS BENETTON'S PREVIOUS ADS HAVE PROVOKED PROTESTS PARTICULARLY THOSE THAT DEPICTED A DYING AIDS PATIENT AND AFRICANS CARRYING WHAT LOOKED LIKE HUMAN BONES SEVERAL PUBLICATIONS REJECTED THEM AND CRITICS SAID BENETTON WAS EXPLOITING SENSITIVE SOCIAL ISSUES TO SELL SWEATERS THE TONE OF THE NEW CAMPAIGN IS A CLEAR BREAK FROM BENETTON'S SELFSERIOUS ATTITUDE OF THE PAST IT ALSO MARKS THE FIRST TIME THE COMPANY HAS ENGAGED IN DIRECT ACTION TO SUPPORT A CAUSE WITH MY PRESENCE I WANT TO REMIND EVERYONE THAT IT IS ALWAYS A BUSINESS ENTERPRISE THAT IS PROMOTING CONCRETE SOCIAL ACTIONS MR BENETTON SAID ROBINSON LAKE LERER & MONTGOMERY THE PUBLIC RELATIONS UNIT OF AD AGENCY HOLDING COMPANY BOZELL JACOBS KENYON & ECKHARDT IS IN TALKS TO MERGE WITH PR FIRM SAWYER MILLER OFFICIALS AT BOTH COMPANIES CONFIRMED TERMS OF THE EXPECTED DEAL COULDN'T BE LEARNED EXECUTIVES ON BOTH SIDES SAID BOZELL WOULD BUY SAWYER MILLER AND COMBINE IT WITH THE ROBINSON LAKE OPERATIONS ROBINSON LAKE HAD ESTIMATED 1991 REVENUE OF 21 MILLION ACCORDING TO O'DWYER'S DIRECTORY OF PR FIRMS SAWYER MILLER'S ARE ESTIMATED TO BE ABOUT THE SAME IF COMPLETED THE MERGER WOULD JOIN ROBINSON LAKE BEST KNOWN AS A TRADITIONAL PUBLIC RELATIONS FIRM WITH CLOSE TIES TO THE REPUBLICAN PARTY WITH SAWYER WHICH BEGAN AS A CONSULTANT TO DEMOCRATIC POLITICAL CANDIDATES SAWYER MILLER NOW FOCUSES MORE ON GIVING CRISISMANAGEMENT ADVICE TO CORPORATIONS LIMITING ITS POLITICAL WORK TO OVERSEAS CLIENTS THE TWO FIRMS' POLITICAL IDENTITIES AREN'T HINDERING THE MOVE NOR ARE THEY PROMPTING IT IN A NEW DEMOCRATIC ADMINISTRATION SAID JAMES LAKE VICE CHAIRMAN OF ROBINSON LAKE WE BEGAN TO DISCUSS THE POSSIBILITY LONG BEFORE BILL CLINTON BECAME THE PRESIDENT HE SAID ROBINSON LAKE IS THE FORMER PR FIRM OF MICHAEL MILKEN AND SAWYER MILLER ONCE REPRESENTED HIS FORMER EMPLOYER DREXEL BURNHAM LAMBERT INC SAWYER MILLER ALSO HAS REPRESENTED AMERICAN EXPRESS CO WHOSE CHAIRMAN JAMES D ROBINSON III IS MARRIED TO ROBINSON LAKE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER LINDA ROBINSON 9301270109 930127 INTERNATIONAL COURT REJECTS KIO SUIT AGAINST 7 EXEMPLOYEES SPECIAL TO THE WALL STREET JOURNAL MADRID THE HIGH COURT IN MADRID REJECTED A CRIMINAL SUIT BROUGHT BY THE KUWAIT INVESTMENT OFFICE AGAINST SEVEN OF ITS FORMER OFFICERS AND EMPLOYEES THE SUIT FILED JAN 8 ALLEGES THAT THE FORMER MEMBERS OF MANAGEMENT AT GRUPO TORRAS SA THE KIO'S SPANISH HOLDING COMPANY LOST OR DIVERTED MORE THAN 100 BILLION PESETAS 8955 MILLION OF KUWAITI INVESTMENTS IN SPAIN BETWEEN 1986 AND 1992 THE KIO CONTENDS THAT THIS MISMANAGEMENT LED TO THE COLLAPSE OF GRUPO TORRAS WHICH FILED FOR RECEIVERSHIP IN DECEMBER BUT JUDGE MIGUEL MOREIRAS OF THE MADRID HIGH COURT ISSUED A WRIT STATING THAT THE SUIT DOESN'T PROVIDE SUFFICIENT EVIDENCE OF THE CRIMES IT ALLEGES WHICH INCLUDE FALSIFYING MERCANTILE AND PUBLIC DOCUMENTS PRICE MANIPULATION FRAUD AND TAX EVASION FOR THE FORMER TORRAS EXECUTIVES TO BE PENALIZED LEGALLY IT WOULD BE NECESSARY THAT FRAUDULENT OR DISLOYAL MANAGEMENT BE INCLUDED IN OUR PENAL CODE JUDGE MOREIRAS SAID A NEW PENAL CODE BEING DRAFTED IS UNDERSTOOD TO INCLUDE FRAUDULENT MISMANAGEMENT AS A CRIMINAL OFFENSE THE JUDGE NOTED HOWEVER THAT THE SUIT MAY BE RETURNED TO THE HIGH COURT IF EVIDENCE OF ALLEGED CRIMES OR FRAUD SURFACE DURING GRUPO TORRAS'S BANKRUPTCYCOURT PROCEEDINGS THE KIO MAY ALSO APPEAL THE COURT'S DECISION 9301270108 930127 LEISURE & ARTS THEATER ARTHUR MILLER ALIVE AND HOME AGAIN BY MELANIE KIRKPATRICK NEW YORK ARTHUR MILLER IS NOT DEAD THIS NEWS MAY COME AS A SURPRISE TO THOSE OF YOU WHO DON'T FOLLOW THE THEATER CLOSELY AND REMEMBER MR MILLER'S PLAYS ONLY FROM HIGH SCHOOL ENGLISH CLASS WHERE A GENERATION OF AMERICANS HAVE GROWN UP READING DEATH OF A SALESMAN 1949 AND THE CRUCIBLE 1953 HIGH SCHOOL CURRICULA MAY BE FULL OF THAT BANE OF MULTICULTURALISTS THE DREADED DEAD WHITE EUROPEAN MALE BUT MR MILLER BORN IN 1915 IS NOT AMONG THEM YET BUT NO ONE SHOULD THINK HIMSELF OUT OF TOUCH FOR ASSUMING THAT MR MILLER HAS GONE TO JOIN SHAKESPEARE AND O'NEILL THE FACT IS THAT NOT A LOT HAS BEEN HEARD FROM HIM IN RECENT YEARS AT LEAST NOT IN THIS COUNTRY THE RIDE DOWN MT MORGAN 1991 HAS NEVER EVEN BEEN PRODUCED IN THE US MR MILLER CHOSE TO OPEN IT IN LONDON WHERE AT LEAST ONE CRITIC EXCORIATED AMERICANS FOR NOT APPRECIATING A NATIONAL TREASURE MR MILLER TALKS READILY ABOUT THE DECLINE OF THE AMERICAN THEATER IN A RECENT SPEECH EXCERPTED IN THE NEW YORK TIMES HE SPOKE ABOUT THE DEMISE OF THE BROADWAY THEATER AND CLAIMED THAT AUDIENCES HAVE LOST INTEREST IN THE THEATER IN FAVOR OF FILMS AND TELEVISION WE PLAYWRIGHTS ARE A KIND OF CHURCH AND IF THE PARISHIONERS ARE NO LONGER INTERESTED IN THAT CHURCH YOU KNOW WHAT HAPPENS IT BECOMES A GARAGE OR A GROCERY STORE SUCH A FATE IS UNLIKELY TO BEFALL THE MANHATTAN THEATRE CLUB WHICH IS SUPPORTED BY FAITHFUL PARISHIONERS WHO ENSURE THAT MOST OF ITS PRODUCTIONS ARE SOLD OUT LONG ONE OF THE COUNTRY'S BEST SOURCES OF FINE NEW PLAYS IT HAS COME UP WITH ANOTHER WINNER IN MR MILLER'S LATEST DRAMA THE LAST YANKEE IF ALL PLAYS WERE AS GOOD AS THIS ONE NO ONE WOULD BE TALKING ABOUT THE DEMISE OF THE AMERICAN THEATER IT REAFFIRMS MR MILLER'S STATUS AS ONE OF THE FINEST DRAMATISTS OF THE 20TH CENTURY LONDON AUDIENCES CAN SEE IT AT THE YOUNG VIC WHERE IT OPENED YESTERDAY THE LAST YANKEE IS RIGHTLY BILLED AS A COMEDY ABOUT A TRAGEDY AS A PLAY ABOUT TWO COUPLES WHO ARE STRUGGLING TO KEEP THEIR MARRIAGES INTACT IT IS ALSO A TRIBUTE TO TRADITIONAL FAMILY VALUES AS SUCH IT IS MOVING EVEN INSPIRATIONAL THE LUMINOUS CAST IS UNDER THE FINE DIRECTION OF MTC VETERAN JOHN TILLINGER SET IN A STATE MENTAL HOSPITAL SOMEWHERE IN NEW ENGLAND THE LAST YANKEE FOCUSES ON TWO MEN WHO MEET WHILE THEIR WIVES ARE BEING TREATED FOR DEPRESSION AS LEROY HAMILTON AND JOHN FRICK SIT IN THE WAITING ROOM THEY PUZZLE OVER WHAT CAUSED THEIR WIVES' ILLNESS THERE'S QUIET DESPERATION IN THEIR VOICES AS THEY SEARCH FOR A COMMON CAUSE COULD IT BE BECAUSE THE WOMEN BOTH ARE NICE QUIET KIND OF WOMEN IS IT BECAUSE THEY HAVE TOO MUCH MONEY OR TOO LITTLE IS IT THE CHILDREN OR THE LACK OF CHILDREN THE UNSTATED QUESTION IS IS IT ME YES IS THE ANSWER THAT EMERGES IN THE NEXT SCENE WHICH TAKES PLACE ON THE OTHER SIDE OF THE WAITINGROOM WALL IN PATRICIA HAMILTON'S HOSPITAL ROOM IN AN EXCHANGE THAT PARALLELS THEIR HUSBANDS' CONVERSATION PATRICIA AND KAREN FRICK DISCUSS THEIR ILLNESS AND THEIR MARRIAGES KAREN A TIMID MOUSE OF A WOMAN UNABLE TO HOLD HER HUSBAND'S ATTENTION HAS RETREATED INTO HERSELF PATRICIA'S DEPRESSION ON THE OTHER HAND SEEMS BORN OF ANGER ANGER THAT SHE HASN'T LIVED UP TO THE STANDARDS THAT HER SWEDISH IMMIGRANT PARENTS SET FOR HER AND ANGER THAT LEROY A DESCENDANT OF ALEXANDER HAMILTON HASN'T DONE MORE WITH HIS LIFE HE'S TOO NICE SHE COMPLAINS RAISE HIS TAXES ROB HIM BLIND THE YANKEE WILL JUST STAND THERE AND LOOK SAD DESPITE THE PLAY'S BREVITY IT RUNS JUST OVER AN HOUR MR MILLER MANAGES TO GIVE EACH OF THESE FOUR CHARACTERS A COMPLEXITY THAT IS RARELY FOUND IN PLAYS TWICE THE LENGTH EACH IS IRRITATING IN HIS OR HER OWN WAY YET EACH ALSO WINS OUR COMPASSION A SUPERB CAST MAKES THIS POSSIBLE AS THE FRAGILE KAREN ROSE GREGORIO IS SWEET HESITANT AND RARELY ABLE TO LOOK ANYONE DIRECTLY IN THE EYE THE LITHE FRANCES CONROY PLAYS PATRICIA AS AN INTELLIGENT OUTGOING GROUCH CONSTANTLY CHALLENGING LEROY TO LEAVE HER AS PLAYED BY TOM ALDREDGE JOHN FRICK IS A BULLY AND A BRAGGART BUT HE'S ALSO A MAN AFRAID OF EMOTION WHO MISSES HIS WIFE AND DOESN'T KNOW WHAT TO DO ABOUT IT THERE'S A POIGNANT MOMENT WHEN HE SAYS GOODBYE TO KAREN NOT WITH A KISS OR A HUG OR EVEN A SMILE BUT WITH HIS EYES AVERTED AND A SOFT PUNCH TO THE SHOULDER BUT IT IS JOHN HEARD AS LEROY HAMILTON THE LAST YANKEE WHO IS THE STAR THAT SHINES THE BRIGHTEST MR HEARD GIVES LEROY A READY SMILE AND A TENTATIVE ALMOST SHY DEMEANOR AT FIRST IT'S HARD TO SAY WHETHER HE'S AN AMIABLE DUNCE OR A SAGE BUT BY THE END OF THE PLAY AFTER HIS REUNION WITH PATRICIA IT'S CLEAR THAT HE IS NOBLE HE EPITOMIZES THE HIDDEN HEROISMS OF EVERY HUSBAND OR WIFE WHO HAS STOOD BY A SPOUSE IN DISTRESS HOW RARE AND HOW SPLENDID IT IS TO FIND A PLAY THAT HONORS MARRIAGE AND GLORIFIES STEADFASTNESS IN A WAY THE LAST YANKEE IS ALSO A TRIBUTE TO THE TRADITIONAL PROTESTANT VIRTUES OF MODESTY SACRIFICE PERSEVERANCE AND HARD WORK THE PLAY IS FULL OF REFERENCES TO ETHNICITY AND CLASS AND ITS ESSENTIAL MESSAGE IS THAT LEROY'S VALUES THE VALUES ON WHICH THIS COUNTRY WAS FOUNDED DESERVE TO BE CHERISHED DESPITE ITS GLOOMY SUBJECT THE LAST YANKEE IS ANYTHING BUT GLUM IT HAS A GENTLE HUMOR AND AN UNDERLYING OPTIMISM THAT ARE APPEALING AND UPLIFTING AND IT CONTAINS SOME LOVELY IMAGES PATRICIA MARVELING AT HER RECOVERY SAYS IT'S LIKE SOME BIRD HAS BEEN HOVERING OVER ME FOR 15 YEARS AND HAS SUDDENLY FLOWN AWAY AND LEROY WHEN ASKED BY PATRICIA WHY HE HAS STOOD BY HER ALL THESE YEARS GIVES A RESPONSE THAT EPITOMIZES HIS ESSENTIAL GOODNESS THERE ARE THE CHILDREN AND THERE ARE SOME CLEAR NEW ENGLAND MORNINGS WHEN YOU WANT TO DRINK THE AIR AND THE SUNSHINE SIMULTANEOUSLY FUNNY AND TRAGIC SOBERING AND UPLIFTING THE LAST YANKEE IS THE WORK OF A MASTER CRAFTSMAN AND IS TESTAMENT TO MR MILLER'S GENIUS AT ELEVATING ORDINARY EVENTS INTO POETRY 9301270107 930127 INTERNATIONAL SUPERTANKER FIRE PUT OUT BUT OIL SPILL CONTINUES SINGAPORE AP TUGS SPRAYING FOAM EXTINGUISHED A FIRE ABOARD THE MAERSK NAVIGATOR A CRIPPLED DANISH SUPERTANKER INVOLVED IN A COLLISION NEAR THE MALACCA STRAIT LAST WEEK BUT OIL CONTINUED TO GUSH OUT WHILE IT ISN'T CLEAR HOW MUCH OIL HAS BEEN SPILLED THE SHIP HAS LEFT A 35MILELONG SLICK OFF THE WESTERN COAST OF SUMATRA AP MOLLER CO OF COPENHAGEN THE SHIP'S OWNER SAID IT HOPED THE SLICK WOULD DISPERSE IN THE 20KNOT WINDS FORECAST FOR THE NEXT TWO DAYS AFTER THE OIL DRIFTED WITHIN 10 MILES OF THE SOUTHERN COAST OF INDIA'S GREAT NICOBAR ISLAND THE TANKER WAS TOWED WESTWARD MONDAY IT IS NOW TENDED BY SEVEN TUGS ABOUT 65 MILES SOUTH OF GREAT NICOBAR AND 80 MILES WEST OF SUMATRA THE MAERSK NAVIGATOR WAS CARRYING 78 MILLION GALLONS OF OIL FROM OMAN TO JAPAN WHEN IT COLLIDED LAST THURSDAY WITH AN EMPTY JAPANESE TANKER THE COLLISION OCCURRED NEAR THE NORTHERN ENTRANCE TO THE MALACCA STRAIT ONE OF THE WORLD'S BUSIEST WATERWAYS BETWEEN INDONESIA AND MALAYSIA 9301270106 930127 MARKETING & MEDIA TARTIKOFF TO SEEK FUNDING TO DEVELOP FILM TV PROJECTS EXPARAMOUNT PICTURES HEAD RESUMES PRODUCTION WORK IN WAKE OF HIS RESIGNATION BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BARELY THREE MONTHS AFTER HE ABRUPTLY QUIT AS CHAIRMAN OF PARAMOUNT PICTURES CORP BRANDON TARTIKOFF IS GETTING BACK INTO THE PRODUCTION BUSINESS THE TELEVISION EXECUTIVE SAID YESTERDAY HE IS DEVELOPING A DOZEN VARIED PROJECTS OF PASSION FOR WHICH HE WILL SEEK FINANCING NEXT WEEK IN LOS ANGELES THE PROJECTS FROM THE FORMER NBC ENTERTAINMENT PRESIDENT INCLUDE FEATURE FILMS HALFHOUR TELEVISION COMEDIES AIMED AT THE NETWORKS A PBS SERIAL AND A GAME SHOW AND A CHILDREN'S SHOW FOR TWO NEW ORLEANS TV STATIONS SUCH PLANS STAND IN STARK CONTRAST TO WHAT SEEMED TO LIE AHEAD FOR MR TARTIKOFF WHEN HE SUDDENLY QUIT HIS PARAMOUNT POST LAST OCTOBER AT THE TIME HE CITED THE NEED TO BE WITH HIS YOUNG DAUGHTER WHO HAD BEEN INJURED ALMOST TWO YEARS EARLIER IN A CAR ACCIDENT AND HAS BEEN RECUPERATING IN NEW ORLEANS HE AND PARAMOUNT BOTH FIRMLY DENIED WIDESPREAD REPORTS THAT HIS DEPARTURE STEMMED MORE FROM HIS FREQUENT CLASHES WITH TOP EXECUTIVES AT THE STUDIO'S PARENT PARAMOUNT COMMUNICATIONS INC STILL MR TARTIKOFF SAID YESTERDAY ONE KEY CRITERION IN HIS NEW VENTURE WILL BE TO MAINTAIN HIS INDEPENDENCE AND A MAJOR STUDIO ISN'T LIKELY TO BE AMONG HIS BACKERS ALTHOUGH HE DIDN'T REFER DIRECTLY TO PARAMOUNT HE SAID I FOUND OUT I'D GOTTEN VERY SPOILED AT NBC A GENERAL ELECTRIC CO UNIT WHERE NO ONE TOLD ME WHAT TO DO MR TARTIKOFF WHO SAID HE EXPECTS TO REMAIN BASED IN NEW ORLEANS AT LEAST UNTIL THE SUMMER UNVEILED HIS PLANS IN A NEWS CONFERENCE FOLLOWING HIS KEYNOTE SPEECH TO THE TV BUSINESS'S ANNUAL PROGRAMMING SALES CONVENTION IN HIS SPEECH TO THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES MR TARTIKOFF SAID THE BROADCAST TELEVISION BUSINESS WILL NEED TO UNDERGO A REVOLUTION OF RADICAL RETHINKING IF IT IS TO SURVIVE IN THE COMING 500CHANNEL UNIVERSE HE CHASTISED THE INDUSTRY FOR TOO MUCH COPYCAT PROGRAMMING AND PROGRAMMING BY COMMITTEE HE ALSO CRITICIZED PROGRAMMING FOR DEMOGRAPHICS WHICH APPEARED TO BE A VEILED SWIPE AT HIS FORMER NETWORK NBC WHICH THIS SEASON AIMED ITS PROGRAMMING SQUARELY AT THE 18TO49YEAROLD AUDIENCE WHILE SHUNNING OLDER VIEWERS IT IS AFTER ALL CALLED BROADCASTING HE SAID AMONG MR TARTIKOFF'S PRESCRIPTIONS FOR SUCCESS IS A RETHINKING OF THE FINANCING OF NETWORK SHOWS AS WELL AS MORE ATTENTION BY THE NETWORKS TO SCHEDULING CONSISTENCY INSTEAD OF USING WHAT HE CALLED THEIR ABBOTT & COSTELLO ROUTINE OF WHO'S ON FIRST WHAT'S ON SECOND AND I DON'T KNOW'S ON THIRD 9301270105 930127 WHO'S NEWS UNITED STEELWORKERS OF AMERICA UNITED STEELWORKERS OF AMERICA PITTSBURGH LYNN R WILLIAMS 68 YEARS OLD WILL RETIRE AS PRESIDENT OF THIS UNION WHEN HIS CURRENT TERM EXPIRES MARCH 1 1994 THE UNION'S EXECUTIVE BOARD IN AN UNOFFICIAL MEETING SAID IT WOULD SUPPORT GEORGE F BECKER THE UNION'S VICE PRESIDENT FOR ADMINISTRATION TO SUCCEED MR WILLIAMS AN ELECTION WILL BE NOV 23 9301270104 930127 LEISURE & ARTS BUSINESS BOOKSHELF A PIONEER ON THE HIGHTECH FRONTIER BY G PASCAL ZACHARY WILLIAM H GATES IS KING OF THE INFORMATION AGE AT ONLY 37 YEARS OLD HE IS THE WEALTHIEST PERSON IN THE US AS THE CHIEF EXECUTIVE AND LARGEST SHAREHOLDER OF MICROSOFT CORP HE IS THE MOST INFLUENTIAL FORCE IN THE COMPUTER INDUSTRY AND HIS COMPANY'S SOFTWARE SITS INSIDE VIRTUALLY EVERY PERSONAL COMPUTER EVER MADE MR GATES'S RISE IS PERHAPS THE MOST MISUNDERSTOOD SUCCESS STORY OF RECENT TIMES HIS FANS SAY HIS SUCCESS PROVES AMERICAN INVENTIVENESS IS ALIVE AND WELL AND THAT MAKING THINGS IS A BETTER ROUTE TO RICHES THAN SIMPLY TRADING THEM THEY SEE MR GATES AS A FOLK HERO WHOSE ACHIEVEMENTS PROMPT OBVIOUS COMPARISONS WITH HENRY FORD KING OF THE MACHINE AGE BUT CRITICS DISMISS MR GATES AS AN AUDACIOUS COPYCAT WHO SMOTHERS COMPETITION BY EXPLOITING THE INNOVATIONS OF OTHERS OTHERS SAY HE WINS BY ABUSING HIS COMPANY'S MONOPOLY POSITION THE GOVERNMENT'S TRUSTBUSTERS ARE SCRUTINIZING HIS EVERY BUSINESS MOVE WHO IS THE REAL BILL GATES AND HOW DID HE COME TO ACQUIRE SUCH WEALTH AND NOTORIETY SO QUICKLY STEPHEN MANES AND PAUL ANDREWS TWO COMPUTER JOURNALISTS TAKE SOME TANTALIZING STABS AT THESE QUESTIONS IN GATES HOW MICROSOFT'S MOGUL REINVENTED AN INDUSTRY AND MADE HIMSELF THE RICHEST MAN IN AMERICA DOUBLEDAY 534 PAGES 25 PART BIOGRAPHY AND PART HISTORY OF MICROSOFT THEIR BOOK CONTAINS NO REVELATIONS BUT DOES PAINSTAKINGLY CHRONICLE THE RISE OF MR GATES AND THE LUCRATIVE SOFTWARE INDUSTRY HE SO DOMINATES WHILE PAINTING A FAMILIAR PICTURE OF MR GATES WHO IN RECENT YEARS HAS BEEN A UBIQUITOUS FIGURE ON MAGAZINE COVERS AND TV NEWS SHOWS THE AUTHORS GIVE A GOOD DEAL OF FINE DETAIL MAINLY BY MINING EXTENSIVE INTERVIEWS WITH MICROSOFT VETERANS AND MR GATES HIMSELF THE RESULTING TALE IS FASTPACED INFORMATIVE AND AT TIMES RIVETING MR GATES THE ONLY SON OF AN UPPERCRUST SEATTLE COUPLE IS PORTRAYED AS A BRILLIANT BUSINESSMAN AN INCESSANT WORRIER AND A SHREWD TECHNOPHILE HE NEVER QUITS OR GOES QUIETLY YOU YELL YOU HOLLER YOU POINT OUT HOW STUPID SOMETHING IS IS HOW THE AUTHORS SUM UP THE GATES MOTIVATIONAL METHOD AND THEY QUOTE ONE ADMIRER SUMMING UP MR GATES BILL IS ONE OF THE VERY FEW CEOS IN A CORPORATION THAT SIZE IN AMERICA WHO ACTUALLY DOES ANYTHING YET IT IS ONLY BY CONSIDERING THE MUNDANE THAT THE TRUE PROPORTIONS OF MR GATES'S ACHIEVEMENTS CAN BE GRASPED OFTEN MISTAKEN FOR A NERD HE REALLY IS A STUBBORN AND UNERRING MANIPULATOR WHO COMES FROM A LINE OF SAVVY BUSINESSMEN AND WAS ADEPT ENOUGH IN HIGH SCHOOL TO SPEND A SUMMER AS A CONGRESSIONAL PAGE HE ALSO CAN SPOT A TREND WHEN THE FIRST PCS CAME OUT IN THE MID1970S MR GATES AND HIS PARTNER PAUL ALLEN WERE AMONG THE FIRST TO RECOGNIZE THAT HARDWARE WAS NOTHING WITHOUT SOFTWARE BY THE EARLY '80S THEY WERE WELL ON THEIR WAY TO BECOMING MULTIMILLIONAIRES AND CONFIDENT ENOUGH TO TURN DOWN AN UNSOLICITED BUYOUT OFFER FROM ROSS PEROT THEN LIFE GOT EVEN BETTER FOR MR GATES INTERNATIONAL BUSINESS MACHINES CORP ASKED MICROSOFT TO SUPPLY THE CRUCIAL OPERATING SOFTWARE FOR ITS ORIGINAL PC A RIVAL OF MR GATES HAD A PROGRAM IN HAND BUT MR GATES SEIZED THE INITIATIVE BY PLAYING ALONG WITH IBM'S DEADLINES AND OBSESSION WITH SECRECY LIVING UP TO HIS CREDO DEMO FIRST CONTRACT SECOND FINISH CODE LATER MR GATES DID NOT EVEN OWN THE DISK OPERATING SYSTEM DOS SOFTWARE HE VOWED WOULD CONTROL THE BASIC FUNCTIONS OF IBM'S PC HE SHREWDLY PURCHASED DOS FOR A SONG AND WITHOUT TELLING THE OWNER OF IBM'S INTEREST IT WAS THE AUTHORS SAY WITHOUT EXAGGERATION THE DEAL OF THE CENTURY IBM DID NOT MAKE MR GATES BUT IT GAVE HIM THE AMPLE MEANS TO MOUNT A FULLSCALE ASSAULT ON EVERY IMPORTANT SEGMENT OF THE SOFTWARE INDUSTRY HE HAS NOT ALWAYS GOTTEN HIS HEART'S DESIRE BUT ONCE HE WINS A MARKET HE NEVER SURRENDERS IT AT LEAST NOT SO FAR MESSRS MANES AND ANDREWS ARE SO BUSY RECOUNTING MR GATES'S STORMY RELATIONS WITH IBM AND OTHERS THAT THEY DON'T ASK IF THEIR SUBJECT HAS SEEN HIS BEST DAYS OR IS DESTINED FOR GREATER TRIUMPHS THEIR ATTENTION TO DETAIL HOWEVER NUMBING AT TIMES DID PAY OFF MONTHS AGO MR GATES OBTAINED A COPY OF THE MANUSCRIPT BY STEALTH AND SCRUTINIZED PAGE AFTER PAGE DURING A WITHERING SEVENHOUR TELEPHONE CALL WITH THE AUTHORS BUT MR GATES SO JEALOUS OF HIS IMAGE THAT HE DID NOT EVEN TAKE A BATHROOM BREAK SUCCEEDED IN FORCING ONLY A FEW SMALL CHANGES THE AUTHORS SAY MR GATES MIGHT HAVE SPARED HIMSELF THE TROUBLE IN THE END HE PROVES AN ENIGMA TO HIS BIOGRAPHERS WHO INSIST MR GATES IS REMARKABLE BUT SEEM UNSURE WHY IN THE WELTER OF DEALS AND ARCANE DEBATES THEY LOSE SIGHT OF THE MEANING OF HIS LIFE PIONEERING ON THE HIGHTECH FRONTIER MR GATES EMBODIES THE STIRRING AMERICAN SYMBOL OF A SELFMADE MAN CALLING HIS OWN SHOTS AT THE SAME TIME HIS SUCCESS IS SO FANTASTIC THAT IT INSPIRES ENVY SUSPICION AND AWE IN BOTH FRIEND AND FOE WHATEVER HIS FUTURE MAY HOLD MR GATES MAY NEVER ESCAPE THE SHADOW OF THESE EMOTIONS MR ZACHARY IS A REPORTER IN THE JOURNAL'S SAN FRANCISCO BUREAU 9301270103 930127 INTERNATIONAL BOUYGUES REPORTS PROFIT RISE PARIS DESPITE THE CRISIS IN THE FRENCH CONSTRUCTION INDUSTRY BOUYGUES SA POSTED A 7 RISE IN PROFIT TO 680 MILLION FRANCS 127 MILLION IN 1992 FROM 635 MILLION FRANCS IN 1991 HOWEVER BOUYGUES'S 1992 PROFIT FIGURE DOESN'T INCLUDE A POTENTIAL PROVISION FOR LOSSES FROM THE CHANNEL TUNNEL THE COMPANY SAID THAT BECAUSE THE ACCOUNTS FROM THE CONTRACTORS' CONSORTIUM TRANSMANCHE LINK OF WHICH IT IS A MEMBER HAVEN'T BEEN FINALIZED IN 1991 BOUYGUES'S SHARE OF THOSE PROVISIONS AS A MEMBER OF TRANSMANCHE LINK FORCED IT TO TAKE 123 MILLION FRANCS IN PROVISIONS THE COMPANY LOWERED ITS FINAL PROFIT FIGURE IN 1991 FROM THE 660 MILLION FRANCS PROVISIONAL FIGURE BOUYGUES ALSO SAID IT EXPECTS REVENUE TO DROP BY ABOUT 54 IN 1993 TO 582 BILLION FRANCS FROM LAST YEAR'S 615 BILLION FRANCS 9301270102 930127 TECHNOLOGY & MEDICINE MERCK 4THQUARTER PROFIT JUMPED 15 WARNERLAMBERT REPORTS 14 NET RISE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STRONG SALES OF TWO MERCK & CO HEART DRUGS AND GROWTH OVERSEAS AT WARNERLAMBERT CO CONTRIBUTED TO DOUBLEDIGIT INCREASES IN FOURTHQUARTER SALES AND EARNINGS FOR BOTH DRUG MAKERS SALES OF MERCK'S HEART DRUGS VASOTEC AND ZOCOR FED A 12 SALES RISE IN THE QUARTER TO 26 BILLION NET INCOME INCREASED 15 TO 6091 MILLION OR 53 CENTS A SHARE BEFORE THE EFFECT OF THREE ACCOUNTING CHANGES EARNINGS ROSE 17 MERCK'S MEVACOR SALES GREW 3 IN THE FOURTH QUARTER COMPARED WITH A YEAR AGO JOYCE ALBERS AN ANALYST AT FIRST BOSTON SAID PHYSICIANS ARE SWITCHING TO MERCK'S OTHER CHOLESTEROLLOWERING DRUG ZOCOR A MORE POTENT DRUG WHOSE SALES INCREASED 57 WHEN THE TWO DRUGS ARE CONSIDERED TOGETHER MERCK PICKED UP MARKET SHARE SHE NOTED FOR THE YEAR MEVACOR SALES WERE UP 18 TO 13 BILLION AND ZOCOR SALES ROSE 62 TO 650 MILLION COMBINED THE DRUGS REPRESENT ONE OF THE WORLD'S LARGEST SELLING PRESCRIPTION DRUGS US SALES OF PROSCAR THE PROSTATE SHRINKING DRUG DECLINED IN THE FOURTH QUARTER AS COMPARED TO THIRD QUARTER SALES BUT DOUBLED IN THE INTERNATIONAL MARKET IN A CLOSED CONFERENCE CALL TO ANALYSTS MERCK BLAMED DISAPPOINTING US SALES OF PROSCAR ON RESISTANCE BY UROLOGISTS WHO STAND TO LOSE INCOME FROM SURGERY IF THEY PRESCRIBE THE DRUG ANALYSTS SAID FOR THE YEAR MERCK'S PROFIT DECLINED 6 TO 198 BILLION OR 172 A SHARE ON SALES OF 966 BILLION BEFORE THE EFFECT OF THREE ACCOUNTING CHANGES PROFIT ROSE 17 TO 25 BILLION OR 215 A SHARE WARNERLAMBERT'S 15 SALES GROWTH ABROAD FUELED ITS OVERALL FOURTHQUARTER SALES RISE ANALYSTS SAID COMPARED WITH DOMESTIC SALES GROWTH OF 6 SALES OF ITS CONFECTIONARY BUSINESS INCLUDING TRIDENT CHLORETS AND DENTYNE GUMS WERE PARTICULARLY STRONG INTERNATIONALLY GROWING 21 COMPARED WITH ITS 7 US INCREASE PHARMACEUTICAL SALES GREW 9 WORLDWIDE IN THE QUARTER BUT A FEW STAR PRODUCTS DID MUCH BETTER SALES OF ITS HEART DRUG LOPID INCREASED 20 AND ITS SEIZURE DRUG DILANTIN GREW 33 FOR THE YEAR WARNERLAMBERT EARNED 6436 MILLION OR 478 A SHARE COMPARED WITH 348 MILLION OR 26 CENTS A SHARE IN 1991 WHEN IT TOOK A CHARGE FOR ACCOUNTING CHANGES SALES WERE 56 BILLION UP 11 9301270101 930127 LEISURE & ARTS ART THEFT UPDATE MASTER DRAWINGS RESURFACE BY CONSTANCE LOWENTHAL NEW YORK ADOLF HITLER INTENDED TO BUILD A MUSEUM FOR ARYAN ART IN LINZ AUSTRIA THE ALLIED VICTORY KEPT HIM FROM COMPLETING THE PROJECT BUT HE MANAGED TO COLLECT QUITE A LOT OF ART BY DEPLOYING A TEAM OF MILITARY MEN AND COMPLAISANT MUSEUM CURATORS TO SIPHON ART FROM CONQUERED NATIONS AND FROM JEWS AND OTHERS WHO FLED THE NAZIS OR PERISHED IN THE HOLOCAUST ABOUT A YEAR AFTER HITLER'S INVASION OF THE NETHERLANDS IN JUNE 1940 THE DIRECTOR OF THE PAINTINGS MUSEUM IN DRESDEN GERMANY HANS POSSE MANAGED TO BUY A TROVE OF MASTER DRAWINGS FROM A MAGNIFICENT GROUP COLLECTED DURING THE '20S BY THE GERMAN INVESTMENT BANKER FRANZ KOENIGS HE HAD MADE A FLOURISHING CAREER IN HAARLEM NEAR AMSTERDAM AND HAD BECOME A DUTCH CITIZEN BUT HIS FINANCES FELL APART AFTER 1929 BY 1933 HE HAD TO OFFER HIS BELOVED DRAWINGS AS COLLATERAL FOR A HUGE LOAN WHEN HIS JEWISH BANKERS CALLED THE LOAN IN ANTICIPATION OF A NAZI INVASION KOENIGS SOLD HIS COLLECTION TO THE DUTCH INDUSTRIALIST JG VAN BEUNINGEN WHO LENT THEM TO THE BOYMANS MUSEUM IN ROTTERDAM VAN BEUNINGEN AND THE BOYMANS DIRECTOR DIRK HANNEMA SUCCEEDED IN KEEPING POSSE'S PURCHASE DOWN TO 527 DRAWINGS OUT OF THE SEVERAL THOUSAND THAT KOENIGS HAD COLLECTED NEVERTHELESS POSSE ACQUIRED ALL BUT TWO OF THE EARLY GERMAN DRAWINGS INCLUDING 17 BY ALBRECHT DURER OTHERS BY MARTIN SCHONGAUER AND LUCAS CRANACH AS WELL AS A SIGNIFICANT NUMBER BY FOREIGNERS SUCH AS WATTEAU REMBRANDT RUBENS AND TITIAN THE SALE WAS ILLEGAL UNDER A LAW PASSED BY THE DUTCH ROYAL GOVERNMENT IN EXILE VOIDING TRANSACTIONS PAID IN ALMOST WORTHLESS REICHSMARKS WHICH THE DUTCH CENTRAL BANK WAS FORCED TO CONVERT TO GUILDERS IN A 1947 DECREE THE EXILED DUTCH GOVERNMENT MADE ALL PROPERTY EXCHANGED IN SUCH TRANSACTIONS ITS OWN LONG BEFORE THAT AND WHILE HITLER STILL CONTROLLED THE NETHERLANDS POSSE SHIPPED HIS KOENIGS DRAWINGS TO DRESDEN AT ABOUT THE SAME TIME KOENIGS DIED IN A TRAIN ACCIDENT NEAR COLOGNE NEAR THE END OF THE WAR BEFORE DRESDEN AND ITS MUSEUM COMPLEX IN THE ZWINGER PALACE WERE LEVELED BY ALLIED FIREBOMBS MUSEUM OFFICIALS REMOVED THE CONTENTS OF THE DRESDEN PRINT ROOM AND DRAWING CABINET TO A CASTLE CALLED SCHLOSS PILLNITZ FOR SAFEKEEPING DRESDEN BECAME PART OF THE SOVIET SECTOR WHEN THE ALLIES DIVIDED GERMANY THE SOVIETS REMOVED MOST OF THE GREAT WORKS OF ART FROM DRESDEN FOR RESTORATION ONLY IN THE LATE '50S WITH EAST GERMANY FIRMLY UNDER THEIR THUMB DID THE SOVIETS RETURN MANY WORKS TWENTY YEARS AGO THIS VISITOR TO DRESDEN WAS MET BY A SIGN ABOVE THE ENTRANCE TO THE PAINTINGS GALLERIES THAT READ SAVED BY THE SOVIET ARMY AND RETURNED TO THE GERMAN PEOPLE THE FATE OF THE PRECIOUS AND FRAGILE PIECES OF PAPER STOLEN FROM THE KOENIGS COLLECTION WAS NOT SO SIMPLE THEY WERE NEITHER CLEARLY SAVED NOR RETURNED THE FATE OF THE DRAWINGS AS WELL AS OF OTHER TREASURES SUCH AS THE GOLD OF TROY AND THE DISMANTLED AMBER CHAMBER FROM THE HERMITAGE PALACE IN ST PETERSBURG WAS UNCERTAIN IN 1987 THE GERMAN DEMOCRATIC REPUBLIC AS EAST GERMANY WAS FORMALLY KNOWN RETURNED 36 OF THE KOENIGS DRAWINGS FROM DRESDEN AND ONE FROM LEIPZIG TO THE NETHERLANDS MOST WERE EARLY GERMAN BY DURER SCHONGAUER HANS BALDUNG GRIEN AND HANS SCHAUFELEIN THROUGH LEGAL ACTION THE NETHERLANDS OFFICE FOR FINE ARTS RECOVERED AN AMBROSIUS HOLBEIN IN LONDON AND A BALDUNG GRIEN FROM THE PRIVATE COLLECTION OF IAN WOODNER IN NEW YORK A TREMENDOUS BREAKTHROUGH CAME RECENTLY WHEN RUSSIA'S MINISTER OF CULTURE YEVGENY SIDOROV ANNOUNCED THAT SOME 360 DRAWINGS FROM THE KOENIGS COLLECTION HAD BEEN FOUND THAT WOULD MEAN THAT JUST 131 DRAWINGS ARE STILL MISSING DUTCH AMBASSADOR JM VOS VISITED A MOSCOW MUSEUM ON NOV 4 AND WAS SHOWN 150 OF THE DRAWINGS HE SAID THEY APPEARED TO BE IN VERY GOOD CONDITION WHILE PRECISE PLANS FOR THEIR RETURN TO THE NETHERLANDS HAVEN'T BEEN REVEALED THE DRAWINGS ARE LIKELY TO BE EXHIBITED IN THE FORMER SOVIET UNION BEFORE THEY HEAD HOME THEY WILL PROBABLY JOIN THE 1500 KOENIGS DRAWINGS THAT REMAINED IN THE NETHERLANDS SINCE THE WAR AT THE MUSEUM BOYMANSVAN BEUNINGEN IN ROTTERDAM IN THE HEYDAY OF MIKHAIL GORBACHEV'S GLASNOST VIKTOR BALDIN THE RETIRING DIRECTOR OF THE MOSCOW MUSEUM OF ARCHITECTURE MADE A STUNNING ANNOUNCEMENT HE SAID THAT AS A SOLDIER IN WORLD WAR II HE SAVED MORE THAN 400 MASTER DRAWINGS FROM A CACHE HE DISCOVERED AS HIS UNIT WITHDREW FROM GERMANY HE SAID HE STORED THEM FOR DECADES AT THE MUSEUM WHERE HE WORKED WAITING FOR A THAW IN EASTWEST RELATIONS MR BALDIN SAID HE WAS NOW RETURNING THEM TO THE BREMEN KUNSTHALLE THE NEWS OF THEIR RETURN WAS GREETED WITH EXCITEMENT BUT WHEN THE NATIONAL GALLERY OF ART IN WASHINGTON DC TRIED TO BORROW ONE OF THE NEWLY RECOVERED DURER DRAWINGS FOR ITS CIRCA 1492 EXHIBITION IT TRANSPIRED THAT THE DRAWINGS WERE NOT PHYSICALLY IN BREMEN DESPITE THE PUBLIC STATEMENTS OF THE BREMEN KUNSTHALLE'S DIRECTOR AND MR BALDIN THE ANNOUNCEMENT OF THE DRAWINGS' RETURN TURNED OUT TO BE PREMATURE MEANWHILE LAST NOVEMBER THE HERMITAGE MUSEUM OPENED AN EXHIBITION OF THE DRAWINGS IF MR BALDIN'S STORY OF RESCUE IS TRUE THE BREMEN OLD MASTER DRAWINGS WERE NOT WAR TROPHIES BUT OWE THEIR SURVIVAL TO A CONNOISSEUR WHO HAPPENED TO BE IN THE SOVIET ARMY MS LOWENTHAL IS EXECUTIVE DIRECTOR OF THE INTERNATIONAL FOUNDATION FOR ART RESEARCH IFAR 9301270100 930127 SEARS WILL REESTABLISH BASE IN MALLS TARGET MIDDLEOFTHEROAD MERCHANTS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO IS MAKING ITS LAST STAND IN THE SHOPPING MALL THE RETAILER WHICH ONCE PRIDED ITSELF ON BEING THE NATION'S BIGGEST IS NOW IGNORING ITS TWO LARGER RIVALS WALMART STORES INC AND KMART CORP INSTEAD IT'S TARGETING MIDDLEOFTHEROAD MERCHANTS JC PENNEY CO AND MAY DEPARTMENT STORES CO SEARS OFFICIALS SAY THE STEPS UNVEILED MONDAY TO CLOSE ITS UNPROFITABLE CATALOG OPERATIONS AND 113 OF ITS 860 DEPARTMENT STORES ARE PART OF AN EFFORT TO REPOSITION SEARS AS A MALLBASED DEPARTMENT STORE FOR MODERATEINCOME CUSTOMERS THE SHUTTERED STORES PRIMARILY ARE IN INNER CITIES OR IN NONMALL LOCATIONS THE NATION'S NO 3 RETAILER ALSO WANTS TO REINVIGORATE ITS STODGY CORPORATE CULTURE AND GIVE GREATER ATTENTION AND MORE FLOOR SPACE TO APPAREL STORES WILL BE BRIGHTER AND CLERKS MORE ATTENTIVE TO SHOPPERS' NEEDS THAT AT LEAST IS THE VISION THAT ARTHUR C MARTINEZ CHAIRMAN OF SEARS'S 32 BILLIONAYEAR MERCHANDISE DIVISION IS SPREADING TO BOARD MEMBERS AND RETAIL ANALYSTS IN EXPLAINING HIS OVERHAUL OF THE RETAILER THERE IS AN IMPORTANT PLACE FOR THE TRUE DEPARTMENT STORE AND WE ARE THAT SAYS MR MARTINEZ WHO JOINED SEARS LAST SEPTEMBER AFTER STINTS AT SEVERAL DEPARTMENT STORES MR MARTINEZ CITES JC PENNEY WHICH HAD ANNUAL SALES OF 12 BILLION IN 1991 AND OPERATED 1283 STORES AND MAY DEPARTMENT STORES WITH ANNUAL SALES OF 89 BILLION AND 3613 STORES AS SEARS'S CHIEF COMPETITORS THEY'RE MALL BASED HE NOTES DISCOUNTERS WALMART AND KMART ON THE OTHER HAND OFFER A DIFFERENT MIX OF GOODS AND A DIFFERENT SERVICE ENVIRONMENT JC PENNEY AND MAY DEPARTMENT STORES MAY NOT BE BAD ROLE MODELS BECAUSE OF THEIR PROFITABILITY SAY RETAIL ANALYSTS BUT THEY ADD THOSE COMPANIES DON'T SET INDUSTRY STANDARDS FOR FASHION SERVICE OR PRICE AS DO MORE VAUNTED RETAILERS SUCH AS NORDSTROM INC AND WALMART THOSE COMPANIES ARE EXPANDING WHILE JC PENNEY AND MAY ARE HOLDING STEADY AND IN SOME AREAS RETRENCHING STILL ANALYSTS CONTEND SEARS HASN'T ANY CHOICE BUT TO PURSUE ITS FRESH MERCHANDISING PLAN SEARS CAN'T BECOME A NORDSTROM THEY CAN'T BECOME A MASS MERCHANT LIKE WALMART SAYS WAYNE HOOD A PRUDENTIAL SECURITIES INC ANALYST THEY'RE STUCK WITH JC PENNEY AND THE MIDDLEOFTHEROAD STUFF WHAT SEARS MAY DISCOVER ANALYSTS SUGGEST IS THAT CLOSING ITS 97YEAROLD CATALOG OPERATION THOUGH PAINFUL MAY PROVE LESS DIFFICULT THAN ATTRACTING SHOPPERS ESPECIALLY WOMEN BACK INTO ITS STORES I DON'T THINK WE'VE DONE A GOOD JOB COMMUNICATING WITH OR PRESENTING OUR ASSORTMENT TO THE YOUNGER CUSTOMER SAYS MR MARTINEZ WE NEED TO TELL OUR STORY IN A MORE COMPELLING WAY THE RETAILER ALREADY HAS BEGUN MAKING ITSELF MORE APPEALING TO WOMEN MANY SEARS STORES HAVE REPLACED CLUTTERED APPAREL DISPLAYS WITH WIDER AISLES AND CLEARER AND BRIGHTER SIGNS WOMENS' DEPARTMENTS IN SOME STORES HAVE CHAIRS NEAR THE CHECKOUT COUNTERS AND TELEPHONES FOR CUSTOMERS TO MAKE LOCAL CALLS SEARS WANTS APPAREL SALES TO REPRESENT ABOUT 40 OF ITS OVERALL STORE SALES UP FROM 27 CURRENTLY ANALYSTS SAY IT WILL EXPAND THE AMOUNT OF SPACE ALLOTTED FOR APPAREL USING AREAS THAT FORMERLY HOUSED CATALOG ORDERANDPICKUP DESKS AND IN SOME SMALLER STORES FURNITURE DISPLAYS BUT SEARS ALSO IS SEEKING TO DISCARD ITS REPUTATION FOR SELLING FRUMPY DUDS RATHER THAN MORE FASHIONCONSCIOUS APPAREL ALREADY THE COMPANY HAS PUT ITS WOMEN'S ADVERTISING ACCOUNT UP FOR REVIEW IN PREPARATION FOR A FALL ADVERTISING BLITZ MR MARTINEZ BELIEVES THE COMPANY HAS MADE GREAT STRIDES IN UPGRADING ITS APPAREL SELECTION BUT HASN'T COMMUNICATED THAT EFFECTIVELY TO CONSUMERS WE HAVE KEPT OUR LIGHT UNDER A BUSHEL MR MARTINEZ SAID ANOTHER KEY ELEMENT OF SEARS'S MERCHANDISING REVIVAL INVOLVES FOSTERING A CORPORATE CULTURE THAT ISN'T RESISTANT TO CHANGE IT'S OFFERING AN EARLYRETIREMENT PACKAGE TO ABOUT 4000 VETERAN EMPLOYEES AND ALSO TYING PAY MORE CLOSELY TO INDIVIDUAL PERFORMANCE THE EARLYRETIREMENT PACKAGE IS SIMILAR TO ONE EMPLOYED BY GENERAL MOTORS CORP WHICH IS CLOSING FACTORIES AND LAYING OFF WORKERS UNDER THE SEARS PLAN EMPLOYEES AT LEAST 50 YEARS OLD AND WITH 20 YEARS OF SERVICE WILL GET YEARS ADDED FOR PENSION PURPOSES TO THEIR AGE AND THEIR YEARS OF SERVICE TO BRING THEM TO THE TRADITIONAL SERVICE LENGTH AND VESTING AGE FOR RECEIVING A PENSION THE PLAN ALSO INCLUDES A YEAR'S PAY FOR EMPLOYEES WITH AT LEAST 20 YEARS OF SERVICE OFFICIALS AT THE COMPANY SAY THAT IN ADDITION TO ACHIEVING LOWER SALARY COSTS IN THE LONG RUN THEY ALSO HOPE TO REINVIGORATE THEIR MERCHANDISE RANKS IT CREATES OPPORTUNITY FOR NEW PEOPLE IN HIGHER POSITIONS BOTH FROM THE INSIDE AND THE OUTSIDE A SEARS OFFICIAL SAID THE COMPANY PLANS TO CONTINUE SELLING THE SAME MIX OF GOODS IT CURRENTLY SELLS BUT THE PORTIONS ARE LIKELY TO CHANGE FOR EXAMPLE SEARS WILL CURTAIL ITS AUTO CENTERS OPERATIONS BY DISCONTINUING MAJOR AUTO REPAIR WORK FOCUSING THOSE CENTERS INSTEAD ON SELLING TIRES AND BATTERIES SHOCK ABSORBERS AND BRAKE JOBS AND DON'T LOOK FOR SEARS TO REPLACE THE OLD STORES IT'S CLOSING WITH NEW ONES MR MARTINEZ SAYS IT IS LESS IMPORTANT TO GROW STORES AS IT IS TO GROW BUSINESS IN THE STORES THAT REMAIN 9301270099 930127 TECHNOLOGY NEOPROBE AND UNIVERSITY IN PACT COLUMBUS OHIO NEOPROBE CORP SAID IT SIGNED AN AGREEMENT WITH THE UNIVERSITY OF CALIFORNIA TO LICENSE A BETARADIATION DETECTION PROBE USED IN SURGERY TO LOCATE CANCER NEOPROBE WHICH IS BASED IN COLUMBUS OHIO SAID THE PATENTED PROBE DEVELOPED BY RESEARCHERS AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES COMPLEMENTS A GAMMADETECTION SYSTEM THAT THE COMPANY IS DEVELOPING FOR DIAGNOSIS AND SURGICAL TREATMENT OF CANCER NEOPROBE'S SYSTEM DETECTS ISOTOPES THAT EMIT GAMMA RAYS WHILE THE UCLA PROBE DETECTS BETARAY EMITTERS PHYSICIANS AT UCLA MEMORIAL SLOANKETTERING HOSPITAL AND CREIGHTON UNIVERSITY ARE CURRENTLY EVALUATING THE BETADETECTION DEVICE IN CLINICAL STUDIES AFTER IT HAS BEEN EVALUATED FOR BRAIN TUMORS NEOPROBE PLANS TO DEVELOP THE DEVICE FOR ENDOSCOPIC OR LAPAROSCOPIC SYSTEMS FOR OTHER SOLIDTUMOR CANCERS 9301270098 930127 WHO'S NEWS LIPOSOME CO LIPOSOME CO PRINCETON NJ ANDREW S JANOFF 44 YEARS OLD AND JOEL B PORTNOFF 55 WERE NAMED VICE PRESIDENTS AT THIS DEVELOPER OF LIPOSOME AND LIPIDBASED PHARMACEUTICALS DR JANOFF DIRECTS LIPID AND LIPOSOME RESEARCH AND MR PORTNOFF IS RESPONSIBLE FOR PRODUCT PHARMACEUTICAL DEVELOPMENT PROJECTS 9301270097 930127 VARITY TO POST A CHARGE BUFFALO NY VARITY CORP SAID IT WILL REPORT A ONETIME CHARGE OF 64 MILLION FOR ITS FOURTH QUARTER ENDING JAN 31 DUE TO THE EARLY CALL OF CERTAIN SENIOR SUBORDINATED NOTES VARITY SAID THE MOVE WILL SAVE ANNUAL INTEREST EXPENSES OF 105 MILLION A YEAR IN THE YEARAGO FOURTH QUARTER VARITY HAD A NET LOSS OF 1153 MILLION OR 480 A SHARE ON REVENUE OF 8995 MILLION THE COMPANY HAS CALLED FOR REDEMPTION OF A 75 MILLION ISSUE OF ITS 14 SENIOR SUBORDINATED NOTES DUE JULY 15 1997 VARITY MAKES AUTOMOTIVE COMPONENTS FARM MACHINERY AND DIESEL ENGINES 9301270096 930127 INTERNATIONAL RUSSIA'S AVIASTAR INTENDS TO CHALLENGE THE WEST'S BIG THREE AIRCRAFT MAKERS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL ULYANOVSK RUSSIA AS WORKERS PUT THE WORLD'S LARGEST CARGO PLANE THROUGH ITS FINAL PRODUCTION TESTS ALEX YAKUSHENKO THE DEPUTY CHIEF ENGINEER OF AVIASTAR A RUSSIAN AIRCRAFT MAKER LISTS SOME OF THE AIRCRAFT'S 21 WORLD RECORDS LARGEST LOAD LIFTED BY AN AIRPLANE LONGEST RANGE FLOWN HIGHEST ALTITUDE FLOWN BY A CARGO PLANE AND SO ON THEN MR YAKUSHENKO FIRES A SUBTLE SHOT ACROSS THE BOWS OF BOEING CO MAKER OF THE GIANT 747 AS WELL AS AIRBUS INDUSTRIE AND MCDONNELL DOUGLAS CORP WE'VE STARTED TO MAKE MARKETING ASSESSMENTS IN THE WEST WESTERN AEROSPACE MANAGERS SAY THAT IF ANY OF RUSSIA'S MAJOR AIRCRAFT PRODUCERS CAN TAKE ON THE BIG THREE WESTERN MANUFACTURERS IT IS AVIASTAR VIKTOR MIKHAYLOV DIRECTORGENERAL OF AVIASTAR SAYS THAT WITHIN THE NEXT 10 YEARS HE WANTS TO TURN AVIASTAR INTO THE WORLD'S NO 3 AIRCRAFT PRODUCER BEHIND BOEING AND AIRBUS TO BE SURE THERE'S THE MATTER OF FINDING THE FUNDS AVIASTAR NEEDS TO REPLACE THE SUBSIDIES THAT USED TO FLOW FROM THE SOVIET STATE THEN THERE'S THAT OTHER SMALL HURDLE IT MUST START SELLING AIRPLANES STILL MR MIKHAYLOV IS OFF TO A RUNNING START HE HIRED THE LONDON OFFICE OF US ACCOUNTING AND CONSULTING FIRM PRICE WATERHOUSE TO SERVE AS ADVISERS THAT ARRANGEMENT AVIASTAR OFFICIALS SAY HAS LED TO TALKS WITH BRITISH AEROSPACE PLC ABOUT THE RUSSIAN COMPANY BUILDING AIRPLANES UNDER CONTRACT IN ADDITION FLEMINGS RUSSIAN INVESTMENT CORP HAS TAKEN A KEEN INTEREST IN AVIASTAR THE UKBASED INVESTMENT FUND HAS PUT UP SOME OF ITS OWN MONEY IT WON'T SAY HOW MUCH AND HELPED BRING IN WESTERN PARTNERS FOR JOINT VENTURES WITH AVIASTAR MR MIKHAYLOV HAS OTHER REASONS TO BE OPTIMISTIC HE CAN BE ASSURED OF GOVERNMENT BACKING AMONG HIS CLOSEST ASSOCIATES IS RUSSIAN PRESIDENT BORIS YELTSIN MORE IMPORTANTLY AVIASTAR'S PLANT IN ULYANOVSK 500 MILES EAST OF MOSCOW IS THE NEWEST IN RUSSIA AND THE MANAGEMENT HAS MADE GREAT STRIDES IN ATTRACTING WESTERN PARTNERS AND INVESTMENT MOST PROMINENT AMONG ITS JOINT VENTURES IS A DEAL TO PUT ENGINES BUILT BY ROLLSROYCE PLC ONTO A BRANDNEW 200SEAT PASSENGER PLANE THE TUPOLEV 204 THE AVIASTAR PLANT IS THE MOST MODERN AND ITS MANAGEMENT IS VERY ENLIGHTENED SAYS MALCOLM MAGEEBROWN DIRECTORGENERAL OF THE BRITISH RUSSIAN AVIATION CORP SET UP TO MARKET THE ROLLSROYCEPOWERED TU204S THE FIRST AIRCRAFT ROLLED OFF THE ULYANOVSK PRODUCTION LINE WITH RUSSIAN ENGINES ONLY SEVEN YEARS AGO BUT ONE FACT ALONE MAY HELP PROPEL AVIASTAR INTO THE BIG LEAGUES THE SIZE OF ITS HOME MARKET IN EASTERN EUROPE AND THE FORMER SOVIET UNION BOEING ESTIMATES THE MARKET FOR NEW AIRCRAFT IN THE FORMER SOVIET UNION OVER THE NEXT 10 YEARS AT ABOUT 1300 PLANES VALUED AT 72 BILLION WITH CURRENT NO 3 MCDONNELL DOUGLAS AILING AVIASTAR NEEDS ONLY TO CAPTURE A HEALTHY PORTION OF ITS HOME MARKET TO MAKE THE TOP THREE IT'S A REALISTIC BOAST SIMPLY BECAUSE A LOT OF THOSE ORDERS WILL BE TAKEN IN THE EAST SAYS PETE DEIGHTON AEROSPACE ANALYST FOR SMITH NEW COURT LTD THERE'S NO REASON ON EARTH THAT RUSSIANS AND EAST EUROPEANS SHOULD FORK OUT MONEY FOR BOEINGS WHEN THEY CAN GET A RELIABLE PLANE WITH WESTERN ENGINES FOR AS MUCH AS A THIRD LESS BUT AVIASTAR FACES A HOST OF HURDLES BOEING AND AIRBUS ALREADY ARE INVADING THE EAST EUROPEAN MARKETS ONCE TAKEN FOR GRANTED BY RUSSIAN MANUFACTURERS IN FACT BOTH WESTERN MANUFACTURERS HAVE PLACED PLANES WITH AIRLINES IN RUSSIA AVIASTAR'S OPERATIONS SPRAWLED ACROSS HUNDREDS OF HECTARES OF TOPQUALITY FARMLAND DESPERATELY NEED TO BE TRIMMED SET UP ALONG THE SOVIET MODEL OF COMPLETE INTEGRATION AVIASTAR DOES EVERYTHING FROM ASSEMBLING THE AIRCRAFT TO BUILDING PASSENGER SEATS TO GROWING FOOD FOR THE WORKERS AVIASTAR'S MOST IMMEDIATE TASK IS TO BRING IN WESTERN PARTNERS TO INVEST IN AND HELP RUN THESE VARIED ACTIVITIES ALLOWING THE COMPANY TO FOCUS ON MAKING AIRCRAFT YET IT MUST BE DONE WITH LIMITED RESOURCES AS RECENTLY AS NOVEMBER THERE WAS ONLY ONE FAX MACHINE IN THE ENTIRE AVIASTAR COMPLEX EVEN THE CHIEF FINANCIAL OFFICER DOES HER JOB WITHOUT A COMPUTER COMPLICATING MATTERS ONE CRUCIAL ASPECT NOT INTEGRATED INTO AVIASTAR'S OPERATIONS IS AIRCRAFT DESIGN AVIASTAR SIMPLY BUILDS THE PLANES ENGINEERS AT THE TUPOLEV BUREAU IN MOSCOW AND THE ANTONOV BUREAU IN UKRAINE COME UP WITH THE IDEAS THE THREE COMPANIES ARE IN TOUGH TALKS OVER HOW TO SPLIT SALES REVENUE FINALLY AVIASTAR MUST START SELLING PLANES IT IS STUCK WITH THE STIGMA OF BEING RUSSIAN AND THUS AS MANY TRAVELERS AND AIRLINES SEE IT SECONDRATE THE RUSSIANENGINE TU204 PASSENGER PLANE MAY BE IN ITS FINAL CERTIFICATION PHASE BUT ONLY THREE HAVE BEEN SOLD IN ADVANCE ANOTHER DEAL FOR 10 IS RUMORED TO BE IMMINENT FORTUNATELY THE GIANT AN124 CARGO AIRCRAFT WITH A PROVEN TRACK RECORD HAS A MORE STABLE SHORTTERM FUTURE AVIASTAR MANAGERS SAY IT MAY BE USED BY AIRBUS TO TRANSPORT WINGS AND OTHER OUTSIZED PARTS IN ITS OWN MANUFACTURING OPERATIONS AND THE PLANE IS BEING PUT INTO SERVICE BY A CARGO OPERATOR AT LONDON'S STANSTED AIRPORT 9301270095 930127 REVIEW & OUTLOOK EDITORIAL BRING BACK HAM JORDAN A LIFETIME IN POLITICS EQUIPPED HIM WITH TACTICAL SAVVY AND STRATEGIC GOOD SENSE THE MEDIA'S LONG APOTHEOSIS OF BILL CLINTON AS A POLITICAL GENIUS HAS RECENTLY GIVEN WAY TO WORRY THAT HE MAY BE ANOTHER SOUTHERN GOVERNOR LOST IN THE BIG CITY FOR THOSE OF US WHO THINK IT'S IMPORTANT THAT AMERICAN PRESIDENTS SUCCEED RATHER THAN COLLAPSE THESE EARLY PORTENTS ARE DISCOURAGING DID SOMEONE SAY HONEYMOON THE WEEK PRIOR TO MR CLINTON'S INAUGURAL WAS DOMINATED BY NEWS OF VARIOUS FLIPFLOPS ON IRAQ HAITI AND TAXES THE SYMBOLISM OF INAUGURAL WEEK WAS MARRED WHEN HE PUSHED CENTRIST ZOE BAIRD OFF THE CLIFF AS SOON AS THE SENATE GOT THE JITTERS FROM THE PHONATHON VOTE NOW WE'RE IN WEEK TWO AND MR CLINTON HAS MANAGED TO PICK A FIGHT WITH BOTH CONGRESS AND THE JOINT CHIEFS OVER GAYS IN THE MILITARY IN THE WORDS OF GENERAL CASEY STENGEL CAN'T ANYONE HERE PLAY THIS GAME TRUTH IS EVEN JIMMY CARTER GOT OFF TO A BETTER START IT'S POSSIBLE TO MAKE TOO MUCH OF EARLY STUMBLES BUT IT IS ALSO TRUE THAT THE EARLY WEEKS OF A PRESIDENCY ARE IMPORTANT IN DEFINING WHAT IT HOPES TO ACCOMPLISH AND WHAT IT REPRESENTS GEORGE BUSH'S EARLY WEEKS DEFINED A PATTERN OF STATUS QUO STEWARDSHIP WITHOUT MUCH DOMESTIC PURPOSE FDR HAD HIS 100 DAYS SO FAR THE NEW PRESIDENT WHO RAN HIS CAMPAIGN AS A PROTECTOR OF THE FORGOTTEN MIDDLE CLASS HAS DEFINED HIMSELF IN OFFICE MAINLY AS THE REPRESENTATIVE OF THE FORGOTTEN CULTURAL ELITE THAT HANGS AROUND THE DEMOCRATIC PARTY THE GAY DISPUTE IS ESPECIALLY TELLING BECAUSE IT NEEDN'T HAVE BEEN AS PROMINENT AND NETTLESOME AS IT'S BECOME THE CHIEFS WANTED TO BE CONSULTED WHILE COOLER HEADS IN CONGRESS HOPED TO TAKE A FEW MONTHS TO HOLD HEARINGS AND FIND SOME COMMON GROUND BETWEEN THE DEMANDS OF THE GAY LOBBY AND MILITARY DISCIPLINE AND CULTURE EVEN SOME GAY LOBBYISTS ARE SUGGESTING THEY UNDERSTOOD THAT DOING IT ALL AT ONCE WITH AN EXECUTIVE ORDER WOULD BE A BRIDGE TOO FAR YET MR CLINTON INSISTED ON BULLING AHEAD INSTRUCTING DEFENSE SECRETARY ASPIN TO DRAW UP AN EXECUTIVE ORDER WITHIN SIX MONTHS GEORGIA'S DEMOCRATIC SENATOR SAM NUNN THE ARMED SERVICES CHAIRMAN AND SUPPOSED LINCHPIN OF MR ASPIN'S STRATEGY TO MOLLIFY CONGRESS ON THE ISSUE POINTEDLY DECLARED MONDAY IF THERE'S A STRATEGY THERE IT HASN'T BEEN EXPLAINED TO ME YOU COULD TAKE THE TWO SIDES OF THAT STATEMENT AND SPEND A WEEK IN POLITICS 101 DISCUSSING THE IMPORTANCE OF DOING EACH PROBABLY MR CLINTON'S SMARTERTHANTHOU AIDES WERE ABLE TO SKIP POLITICS 101 REPUBLICANS LED BY INDIANA SENATOR DAN COATS NOW PLAN TO ATTACH AMENDMENTS TO ANY BILL TO CODIFY THE EXISTING BAN ON HOMOSEXUALS IN THE MILITARY SO MR CLINTON FINDS HIMSELF PINCHED BETWEEN ALIENATING A GAY CONSTITUENCY WHICH RAISED A LOT OF MONEY FOR HIM DURING THE CAMPAIGN AND A POSSIBLE EMBARRASSMENT IN A DEMOCRATIC CONGRESS IT'S POSSIBLE ALL OF THIS IS A DARMANESQUE STRATEGY TO GET CONGRESS TO CODIFY THE BAN SO THAT MR CLINTON CAN THEN THROW UP HIS HANDS SAY HE TRIED AND GET THE ISSUE BEHIND HIM BUT ON THE EVIDENCE OF THE PAST FORTNIGHT THAT'S PROBABLY GIVING THE WHITE HOUSE TOO MUCH CREDIT WHAT THE FIASCO LOOKS LIKE INSTEAD IS THE OLD DEMOCRATIC PROBLEM OF INTERESTGROUP POLITICS RUN AMOK MR CLINTON MADE A CAMPAIGN PROMISE TO ONE OF HIS PARTY'S FRINGE GROUPS AND NOW HE'S STUCK WITH TRYING TO SQUARE THAT PROMISE WITH THE REAL WORLD MR CLINTON'S FAILURE TO COMPROMISE ON THE GAY ISSUE IS ESPECIALLY ODD WHEN HE'S ALREADY CAVING ON A MUCH MORE IMPORTANT ONE TAXES HIS ORIGINAL PROMISE OF A MIDDLECLASS TAX CUT HAS NOW EVOLVED INTO A NEARCERTAIN MIDDLECLASS TAX INCREASE ON SUNDAY TREASURY SECRETARY LLOYD BENTSEN FLOATED THE LATEST TRIAL BALLOON A TAX ON ENERGY PERHAPS THE CLINTON TEAM THINKS VOTERS ARE SO DUMB THEY DON'T UNDERSTAND THAT THEY PAY SUCH A TAX IN THE FORM OF HIGHER PRICES EVEN IF IT'S LEVIED ON CORPORATIONS WE'VE NEVER THOUGHT A MIDDLECLASS TAX CUT WOULD HELP THE ECONOMY MUCH BUT A TAX INCREASE SURELY WON'T MORE IMPORTANT POLITICALLY TO LEAD ANY NEW PRESIDENTIAL ECONOMIC PROGRAM WITH A TAX INCREASE CONSTITUTES UNILATERAL SURRENDER TO CONGRESS THE ONLY SPENDING CUT THAT THE CLINTON TEAM HAS FLOATED TO DATE IS AN INCREASE IN THE TAX RATE ON SOCIAL SECURITY AND MEDICARE BENEFITS MERITS ASIDE THIS TOO IS ESSENTIALLY A TAX INCREASE IT ASKS TAXPAYERS TO SACRIFICE SO THAT WASHINGTON DOESN'T HAVE TO OUR HOPE FOR THE CLINTON PRESIDENCY HAS BEEN THAT HIS REPUTED POLITICAL SKILLS WOULD ALLOW HIM TO TAME GOVERNMENT AND HIS PARTY'S APPETITES IN A WAY THAT NO REPUBLICAN COULD THIS AFTER ALL IS WHAT HE PROMISED IN THE CAMPAIGN NO MORE BIG BUREAUCRACIES AND REINVENTING GOVERNMENT IT IS ALSO WHAT PEROT VOTERS SEEM TO WANT YET INSTEAD OF PROVIDING ANY SORT OF BROADLY SUPPORTABLE VISION FOR THE AMERICAN ELECTORATE SO FAR PRESIDENT CLINTON HAS ACCOMMODATED HIS PARTY'S NARROWER CONSTITUENCIES AT EVERY TURN HAM JORDAN COULD TELL HIM THAT DOWN THIS PATH LIES ONLY RUIN 9301270094 930127 INTERNATIONAL BRIEF HOOGOVENS & STAALFABRIEKEN NV DUTCH STEELMAKER TO RAISE PRICES AS MUCH AS 15 APRIL 1 THE DUTCH STEELMAKER HOOGOVENS & STAALFABRIEKEN NV SAID IN AMSTERDAM IT PLANS TO RAISE STEEL PRICES AS MUCH AS 15 APRIL 1 HOOGOVENS SAID THE PRICE INCREASES ARE IN LINE WITH A TREND IN THE EUROPEAN STEEL INDUSTRY IN RECENT WEEKS ALTHOUGH IT DIDN'T SAY WHETHER DEMAND HAS IMPROVED ENOUGH TO MAKE THE PRICE INCREASES STICK STEEL PRICES IN EUROPE HAVE BEEN DEPRESSED FOR THE PAST TWO YEARS AS DEMAND HAS BEEN LOW AND SUPPLY HIGH BUOYED ESPECIALLY BY A FLOOD OF STEEL REACHING WESTERN EUROPE FROM THE FORMER SOVIET BLOC THE EUROPEAN COMMISSION ON THE INITIATIVE OF HOOGOVENS AND OTHERS IS PREPARING MEASURES TO REDUCE THIS OVERCAPACITY AND HAS TAKEN MEASURES TO CONTROL IMPORTS FROM EASTERN EUROPE HOOGOVENS SAID 9301270093 930127 WHO'S NEWS HAYES WHEELS INTERNATIONAL INC HAYES WHEELS INTERNATIONAL INC ROMULUS MICH WILLIAM D SHOVERS WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS DESIGNER MANUFACTURER AND SUPPLIER OF ALUMINUM AND STEEL WHEELS FOR CARS AND TRUCKS MR SHOVERS 38 YEARS OLD WAS FORMERLY A VICE PRESIDENT FINANCE WITH TENNECO INC 9301270092 930127 INTERNATIONAL BRITISH BANKS ARE CLEARED ON SMALLBUSINESS ISSUE LONDON A BANK OF ENGLAND REPORT CLEARED BRITAIN'S LEADING BANKS OF ACCUSATIONS THAT THEY FAILED TO PASS ON THE BENEFIT OF LOWER INTEREST RATES TO SMALL BUSINESSES ALTHOUGH THE REPORT'S PUBLICATION COINCIDED WITH A ONEPERCENTAGEPOINT CUT IN BRITISH BASE RATES TO 6 SOME SAID THAT AS BRITAIN'S ECONOMY STRUGGLES TO COME BACK FROM ITS WORST RECESSION SINCE WORLD WAR II SMALL COMPANIES ARE LIKELY TO FIND CAPITAL INCREASINGLY EXPENSIVE THE RISK IN THE SMALLBUSINESS SECTOR IS FAR HIGHER THAN WE'RE CHARGING FOR AT PRESENT SAID MATTHEW BULLOCK A BARCLAYS BANK PLC REGIONAL MANAGER BASED IN LEEDS ENGLAND YOU CANNOT GO ON SIMPLY SUPPLYING THOSE SERVICES AT AN UNECONOMIC LEVEL ACCORDING TO BRITAIN'S MAIN COMMERCIAL BANKS MARGINS ON LOANS TO SMALL BUSINESSES WOULD NEED TO RISE TO AROUND 5 TO TAKE ADEQUATE ACCOUNT OF THE RISKS INVOLVED 9301270091 930127 ECONOMY BANKS ARE GIVEN A BIT MORE FLEXIBILITY BY FED TO DEAL IN CORPORATE SECURITIES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD REJECTING OBJECTIONS FROM THE SECURITIES INDUSTRY ADOPTED AN ORDER GIVING BANKS SLIGHTLY MORE FLEXIBILITY TO DEAL IN CORPORATE SECURITIES IN RESPONSE TO SHARP DECLINES IN INTEREST RATES THE BOARD VOTED 52 TO ADJUST A REVENUE TEST THAT HAS LIMITED THE SECURITIES BUSINESS CONDUCTED BY THE SECURITIES AFFILIATES OF ABOUT TWO DOZEN LARGE BANKS THE TWO DISSENTING GOVERNORS WAYNE ANGELL AND FED VICE CHAIRMAN DAVID MULLINS SAID THEY AGREE THAT ADDITIONAL FLEXIBILITY IS NEEDED BUT THEY SAID THE MAJORITY ADOPTED A METHOD THAT WILL IMPOSE EXTENSIVE NEW RECORDKEEPING AND REPORTING OBLIGATIONS ON BANKS THEY ALSO ARGUED THAT THE BOARD HAS BEEN TOO TIMID IN ITS APPROACH ALTHOUGH TECHNICAL THE FED'S ACTION IS LIKELY TO ATTRACT WIDE ATTENTION ON WALL STREET AND ON CAPITOL HILL THE RULING DEALS WITH ONE OF THE MOST SENSITIVE FRICTION POINTS BETWEEN BANKS AND BROKERAGE FIRMS A 1987 FED DECISION TO GRANT BANKS LIMITED ENTRY INTO THE SECURITIES UNDERWRITING BUSINESS BROKERAGE FIRMS HAVE BEEN TRYING TO GET CONGRESS TO FENCE BANKS OUT OF THE SECURITIES BUSINESS EVER SINCE THE GLASSSTEAGALL ACT PASSED DURING THE DEPRESSION GENERALLY PREVENTS BANKS FROM ENTERING THE SECURITIES BUSINESS BUT THE FED HAS AUTHORIZED A SMALL NUMBER OF BANKS TO UNDERWRITE AND DEAL IN CORPORATE SECURITIES THAT BUSINESS MUST BE DONE THROUGH AFFILIATES AND THE REVENUE THE AFFILIATES EARN FROM DEALINGS IN THESE SOCALLED INELIGIBLE SECURITIES CAN'T EXCEED 10 OF THEIR REVENUES FROM GOVERNMENT SECURITIES BANKS HAVE LONG BEEN ABLE TO DEAL IN GOVERNMENT SECURITIES OVER THE LAST YEAR SHORTTERM INTEREST RATES HAVE DECLINED SHARPLY WHILE THE REDUCTION IN LONGTERM RATES HAS BEEN FAR LESS PRONOUNCED SINCE GOVERNMENT SECURITIES TEND TO HAVE SHORTER MATURITIES THAN THE CORPORATE SECURITIES IN WHICH BANKS DEAL BANK REVENUE FROM GOVERNMENT SECURITIES DEALINGS HAS DROPPED MORE STEEPLY THIS HAS HAD THE UNINTENTIONAL EFFECT OF REDUCING THE AMOUNT OF CORPORATE SECURITIES BUSINESS SOME BANKS CAN CONDUCT TO GRANT BANKS MORE FLEXIBILITY THE FED ADOPTED AN ALTERNATIVE TEST BANKS WOULD BE ALLOWED TO ADJUST THEIR AFFILIATES' REVENUES TO WHAT THEY WOULD BE IF LONGTERM AND SHORTTERM INTEREST RATES HAD MAINTAINED THE RELATIONSHIP THEY HAD IN SEPTEMBER 1989 WHEN THE CENTRAL BANK ADOPTED THE 10 REVENUE RULE THE FED WILL PUBLISH QUARTERLY ADJUSTMENT FIGURES BANKS WILL HAVE THE CHOICE OF STICKING WITH THE CURRENT SYSTEM OR USING THE ALTERNATIVE METHOD GOVERNORS ANGELL AND MULLINS ARGUED THAT THE BOARD SHOULD HAVE CONSIDERED INCREASING THE LIMIT ON WHAT BANKS CAN EARN FROM DEALING IN CORPORATE SECURITIES SUCH A CHANGE WOULD HAVE BEEN A MORE FUNDAMENTAL AND EFFICIENT APPROACH TO THIS PROBLEM THEY SAID THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP FEARS THAT THE FED EVENTUALLY WILL BOOST THE LIMIT AND GIVE BANKS MORE ROOM TO COMPETE AGAINST BROKERAGE FIRMS IN THE LUCRATIVE SECURITIES UNDERWRITING BUSINESS ANY SUCH MOVE WOULD GENERATE OPPOSITION FROM WALL STREET'S ALLIES IN CONGRESS AND POSSIBLY FROM THE CLINTON ADMINISTRATION ROBERT RUBIN WHO HEADS PRESIDENT CLINTON'S NATIONAL ECONOMIC COUNCIL HAS LONG OPPOSED BANK ENTRY INTO THE SECURITIES BUSINESS WHEN HE WAS COCHAIRMAN OF GOLDMAN SACHS & CO HE SOMETIMES LOBBIED CONGRESS ON BEHALF OF THE SECURITIES INDUSTRY'S POSITION LAST YEAR BOTH THE FED AND THE COMPTROLLER OF THE CURRENCY LAUNCHED PRELIMINARY INVESTIGATIONS INTO SECURITIES INDUSTRY CHARGES THAT SOME BANKS HAVE CONDITIONED LENDING TO CORPORATE CUSTOMERS TO THE CUSTOMERS' USE OF INVESTMENT BANKING SERVICES PROVIDED BY THE BANKS' AFFILIATES BANKS HAVE DENIED SUCH ILLEGAL TYING BUT THE INVESTIGATIONS ARE CONTINUING AND COULD LEAD TO THE ISSUANCE OF SUBPOENAS IF REGULATORS FIND REASON TO BELIEVE THAT TYING EXISTS 9301270090 930127 KANTOR TO MEET WITH EC'S TOP TRADE NEGOTIATOR WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR PLANS TO MEET WITH THE EUROPEAN COMMUNITY'S TOP TRADE NEGOTIATOR SIR LEON BRITTAN IN WASHINGTON FEB 11 US OFFICIALS SAID SIR LEON THE EC'S COMMISSIONER FOR ECONOMIC AFFAIRS HAS BEEN PRESSING TO MEET WITH MR KANTOR IN AN EFFORT TO REVIVE STALLED WORLD TRADE TALKS NEGOTIATIONS FOR A NEW TRADE PACT UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WERE ESSENTIALLY SUSPENDED AFTER THE CLINTON ADMINISTRATION TOOK OFFICE MR KANTOR AND THE CLINTON ADMINISTRATION HAVE GIVEN FEW HINTS ABOUT HOW THEY WANT TO PROCEED DURING HIS CONFIRMATION HEARINGS MR KANTOR CRITICIZED THE TERMS OF AN AGRICULTURAL AGREEMENT WHICH AVERTED A TRADE WAR AND GAVE MOMENTUM TO THE GATT TALKS BUT AT THE SAME TIME HE SUGGESTED THAT IT MIGHT BE POSSIBLE TO WRAP TOGETHER THE GATT TALKS AND NEGOTIATIONS OVER STEEL SUBSIDIES AND DUMPING 9301270089 930127 BUSINESS BRIEFS STANDARD PRODUCTS CO COMPLETED THE ACQUISITION OF STANDARD PRODUCTS INDUSTRIEL FOR 123 MILLION PATRICK PETROLEUM CO SIGNED A LETTER OF INTENT TO ACQUIRE HOUSTONBASED AMERICAN NATIONAL PETROLEUM CO FOR 362 MILLION THE MERGER AGREEMENT IS EXPECTED TO BE COMPLETED BY JUNE FRANKLIN ELECTRONIC PUBLISHERS INC REACHED AGREEMENT WITH MOSBY YEAR BOOK INC TO PUBLISH A DIGITAL VERSION OF MOSBY'S HARRIET LANE HANDBOOK FOR PEDIATRICS DIGITAL EQUIPMENT CORP PLANS TO SELL ITS METALENCLOSURE MANUFACTURING UNIT IN WESTFIELD MASS THE SALES PRICE WASN'T DISCLOSED UNISYS CORP SIGNED A 10YEAR 47 MILLION CONTRACT FOR INFORMATION TECHNOLOGY SERVICES WITH INTEGRATED SYSTEMS SOLUTIONS CORP A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP BOMBAY CO SAID ITS SALES FOR THE FOURWEEKS ENDED SUNDAY ROSE 33 TO 176 MILLION FROM 132 MILLION THE YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR GREW 14 DURING THE PERIOD BOMBAY CO SAID ITS SAMESTORE SALES FOR STORES OPEN MORE THAN ONE YEAR GREW 17 FOR THE FOUR WEEKS ENDED JAN 24 FROM A YEAR EARLIER AN ITEM IN WEDNESDAY'S BUSINESS BRIEFS SECTION INCORRECTLY STATED THAT SALES ROSE 14 9301270088 930127 WHO'S NEWS BELL ATLANTIC SELECTS CULLEN PHILADELPHIA BELL ATLANTIC CORP NAMED JAMES G CULLEN 50 YEARS OLD PRESIDENT OF THE REGIONAL BELL TELEPHONE COMPANY EFFECTIVE FEB 1 HE SUCCEEDS ANTON J CAMPANELLA 60 WHO RETIRED IN JUNE 1992 MR CULLEN CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OF THE NEW JERSEY BELL UNIT WILL CONTINUE AS CHAIRMAN OF THE UNIT ALFRED KOEPPE 46 CURRENTLY NEW JERSEY BELL VICE PRESIDENT OF PUBLIC AFFAIRS SUCCEEDS MR CULLEN RAYMOND W SMITH 55 CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OF THE PARENT COMPANY 9301270087 930127 FIELDCREST CANNON TO BUY UNIT EDEN NC FIELDCREST CANNON INC SAID IT IS ACQUIRING THE DISTRIBUTION AND MARKETING OPERATION OF CS BROOKS/CALDWELL A CANADIAN TEXTILE CONCERN AS WELL AS THE RIGHTS TO THE CALDWELL BRAND NAME FOR TOWELS TERMS OF THE TRANSACTION WEREN'T DISCLOSED FIELDCREST A TEXTILE CONCERN SAID THAT UNDER THE AGREEMENT CS BROOKS/CALDWELL IN MONTREAL WILL BECOME A MANUFACTURING CONTRACT SUPPLIER TO FIELDCREST 9301270086 930127 SHORT INTEREST IN OTC STOCKS ADVANCES 21 INCREASE IN MONTH REVERSES RECENT TREND CENTOCOR POSTS A SIZABLE TOTAL BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BREAKING A TWOMONTH SLIDE SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET ROSE 21 IN MIDJANUARY TO 4652 MILLION SHARES FROM 4558 MILLION IN THE PRIOR MONTH ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST CLIMBED 17 TO 4382 MILLION SHARES FROM 4307 MILLION THAT INCREASE WAS COMPOUNDED BY A JUMP IN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT ONETHIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS ROSE 8 TO 27 MILLION SHARES SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST MEANS THE TOTAL AMOUNT OF SHARES SOLD SHORT AT ANY POINT IN TIME IN THIS CASE THOSE REPORTED AS OF JAN 8 AND SETTLED AS OF JAN 15 DURING THE PAST COUPLE OF MONTHS MANY TRADERS WHO SHORTED STOCK HAVE BEEN FORCED TO COVER THEIR POSITIONS IN WHAT'S CALLED A SHORTSQUEEZE BECAUSE THE NASDAQ OTC MARKET HAS RISEN 22 SINCE THE BEGINNING OF OCTOBER BUT THE RECENT RISE IN SHORT INTEREST ANALYSTS SAY MIGHT INDICATE THAT THE BEARS THINK A CORRECTION IS COMING MARK ROBERTS DIRECTOR OF RESEARCH FOR OFF WALL STREET CONSULTING GROUP IN CAMBRIDGE MASS SAID THAT IN DECEMBER A LOT OF SHORTS HAD TO COVER THEIR POSITIONS BUT NOW HE SAYS AFTER POSTING WEAK PERFORMANCE RECORDS FOR THE YEAR SHORTS ARE READY TO MAKE UP FOR A BAD 1992 PSYCHOLOGICALLY IT FEELS LIKE A TOP IS APPROACHING MR ROBERTS SAID IF YOU THOUGHT THESE STOCKS WERE A GOOD SHORT A LITTLE WHILE AGO THEY ARE EVEN BETTER NOW EVEN THOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK SOME ANAYSTS SAY SHORT INTEREST DOESN'T REFLECT ANY OPINION ON A STOCK AT ALL BUT SHOWS UP AS PART OF ANOTHER STRATEGY SUCH AS ARBITRAGE OR DIVIDEND CAPTURE THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDJANUARY FELL TO 199 FROM 219 A MONTH EARLIER WHILE THE SHORT INTEREST RATIO FOR SMALLER NASDAQ STOCKS EDGED UP TO 073 FROM 072 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS ALSO WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS THE FOLLOWING TABLES SHOW THE OVERTHECOUNTER ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 100000 SHARES EXISTED AT MIDJANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDDECEMBER SEE ACCOMPANYING TABLES WSJ JAN 27 1993 9301270085 930127 TENNECO PARTICIPATES IN WELLS HOUSTON TENNECO GAS A UNIT OF TENNECO INC SAID IT PARTICIPATED IN THREE NATURAL GAS DISCOVERIES TWO WELLS DRILLED OFFSHORE MISSISSIPPI TESTED 52 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 54 MILLION CUBIC FEET RESPECTIVELY ANOTHER DRILLED IN TERREBONNE PARISH LA TESTED 49 MILLION CUBIC FEET A DAY OF NATURAL GAS TENNECO GAS OWNS A 25 WORKING INTEREST IN THE TWO OFFSHORE WELLS WHICH ARE OPERATED BY GULFSTAR ENERGY INC HOUSTON GULFSTAR HAS A 50 INTEREST AND INSTITUTIONAL INVESTORS HOLD THE REST ZEIT EXPLORATION CO A CLOSELY HELD NEW ORLEANS CONCERN IS THE OPERATOR OF THE TERREBONNE PARISH WELL WITH A 1875 INTEREST TENNECO GAS ALSO HOLDS AN 1875 INTEREST WHILE LOUISIANA LAND & EXPLORATION CO NEW ORLEANS HAS A 25 STAKE THE REMAINING INTERESTS ARE HELD BY SEVERAL CLOSELY HELD COMPANIES 9301270084 930127 LAW LEGAL BEAT DREXEL IS BARRED FROM COLLECTING ON INSURANCE FOR EMPLOYEE CRIMES BY EDWARD FELSENTHAL AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL DREXEL BURNHAM LAMBERT GROUP INC CAN'T COLLECT ON INSURANCE POLICIES MEANT TO COVER LOSSES FROM THE WRONGDOING OF EMPLOYEES SUCH AS MICHAEL MILKEN A NEW YORK STATE JUDGE RULED IN REBUFFING DREXEL'S 450 MILLION IN CLAIMS THE JUDGE SAID THE COMPANY ITSELF BEARS BLAME FOR LOSSES RESULTING FROM ITS EMPLOYEES' SECURITIESLAW VIOLATIONS IN THE 1980S THE MONEY WOULD HAVE GONE TO CLAIMANTS AND CREDITORS IN CASES THAT INVOLVED DREXEL WHICH STOPPED OPERATING AS A BROKERAGE FIRM IN 1990 DREXEL FILED THE CASE AGAINST MORE THAN 30 INSURERS THAT HAD REJECTED THE FIRM'S CLAIMS ON INSURANCE POLICIES CALLED BANKERS' AND BROKERS' BLANKET BONDS COMPANIES TYPICALLY PURCHASE SUCH POLICIES TO PROTECT THEMSELVES AGAINST LOSSES THROUGH ACTS BY EMPLOYEES SUCH AS EMBEZZLEMENT THEFT OR FRAUD IN AN OPINION DISMISSING THE CASE JUDGE EDWARD GREENFIELD TOOK DREXEL TO TASK FOR THE DEBACLE OF SHATTERED HOPES LIVES AND DREAMS CAUSED BY THE NOTORIOUS ACTIVITIES OF MICHAEL MILKEN AND DENNIS LEVINE TWO FORMER DREXEL EMPLOYEES WHO PLAYED CENTRAL ROLES IN THE WALL STREET SCANDALS OF THE 1980S THE JUDGE SAID IT WOULD VIOLATE PUBLIC POLICY TO REQUIRE THAT DREXEL'S INSURERS COVER LOSSES THAT INVOLVED THE FIRM'S ADMITTED CRIMINAL CONDUCT IN 1989 DREXEL PLEADED GUILTY TO SECURITIES FRAUD AGREEING TO PAY ABOUT 650 MILLION IN CRIMINAL AND CIVIL PENALTIES FOR ITS ROLE IN A CASE THAT FOCUSED ON MR MILKEN MR MILKEN THE FIRM'S FORMER JUNKBOND CHIEF PLEADED GUILTY IN 1990 TO SIX FELONY COUNTS RELATED TO SECURITIES TRANSACTIONS DREXEL PLANS TO APPEAL THE JUDGE'S RULING SAID ONE OF ITS LAWYERS ALAN RAYLESBERG OF THE NEW YORK LAW FIRM ROSENMAN & COLIN DREXEL PURCHASED THE POLICIES BETWEEN 1986 AND 1990 FROM 39 INSURERS INCLUDING VIGILANT INSURANCE CO INA CORP AND LLOYDS OF LONDON THE DECISION APPARENTLY THREATENS ABOUT 30 MILLION IN EXPECTED BLANKETBOND PAYMENTS THAT WERE PART OF AN AGREEMENT UNDER WHICH MR MILKEN OTHER FORMER DREXEL EMPLOYEES AND VARIOUS INSURERS ARE TO PAY 13 BILLION TO SETTLE CIVIL SUITS PENDING AGAINST MR MILKEN AND ABOUT 200 OTHERS MOSTLY DREXEL EMPLOYEES ALTHOUGH DREXEL'S CLAIMS AGAINST THE INSURERS INVOLVED 450 MILLION IN BLANKETBOND COVERAGE ONLY 30 MILLION OF THAT WAS FACTORED INTO THE SETTLEMENT AGREEMENT WHICH WAS APPROVED BY A FEDERAL JUDGE IN NEW YORK LAST YEAR DREXEL SPOKESMEN SAID THE DECISION ISN'T EXPECTED TO SCUTTLE THE SETTLEMENT AGREEMENT SAID MELVYN I WEISS A NEW YORK LAWYER WHO REPRESENTS PLAINTIFFS IN THE CIVIL SUITS THAT ARE COVERED IN THE AGREEMENT MR WEISS SAID THAT IF DREXEL'S APPEAL ISN'T SUCCESSFUL THE 30 MILLION WOULD COME FROM OTHER SOURCES HE DECLINED TO COMMENT SPECIFICALLY ON WHAT THOSE SOURCES MIGHT BE IN ADDITION TO HIS CONCERN ABOUT THE PUBLICPOLICY IMPLICATIONS OF REQUIRING THE BLANKETBOND INSURERS TO PAY DREXEL'S CLAIMS JUDGE GREENFIELD SAID THE BONDS WERE NEVER INTENDED TO COVER THE KINDS OF ACTS INVOLVED IN THE DREXEL CASE BECAUSE THOSE FRAUDS WERE NOT COMMITTED AGAINST DREXEL BUT AGAINST MEMBERS OF THE INVESTING PUBLIC THE COMPANIES THEY MANIPULATED AND THE FEDERAL REGULATORY AGENCIES MESSRS MILKEN AND LEVINE THE JUDGE WROTE DID NOT STEAL FROM THE COMPANY THEY STOLE FOR THE COMPANY FEDERAL PROSECUTORS WON'T BE ABLE TO USE THE TESTIMONY OF ONE OF THEIR MAIN WITNESSES IN THE RETRIAL OF ATTORNEY E ROBERT WALLACH ON CHARGES CONNECTED TO THE WEDTECH CORP INFLUENCEPEDDLING SCANDAL US DISTRICT JUDGE RICHARD OWEN TURNED DOWN A REQUEST BY PROSECUTORS TO READ THE TESTIMONY OF ANTHONY GUARIGLIA FORMER PRESIDENT OF WEDTECH TO THE JURY AT THE RETRIAL MR GUARIGLIA'S TESTIMONY WAS DESCRIBED AS THE CENTERPIECE OF THE GOVERNMENT'S CASE AT THE FIRST TRIAL BUT MR GUARIGLIA HAS SAID HE WON'T TESTIFY AT THE RETRIAL MR WALLACH WHO WAS A CLOSE FRIEND OF EDWIN MEESE III PRESIDENT REAGAN'S ATTORNEY GENERAL WAS CONVICTED OF INFLUENCEPEDDLING IN HIS WORK FOR WEDTECH A NOWDEFUNCT NEW YORK DEFENSE CONTRACTOR BUT AN APPEALS COURT THREW OUT THE CONVICTION SAYING PROSECUTORS SHOULD HAVE KNOWN THAT MR GUARIGLIA HAD LIED ON THE WITNESS STAND ABOUT PERSONAL ISSUES SUCH AS HIS GAMBLING HABITS MR GUARIGLIA IS SERVING A 27MONTH SENTENCE FOR PERJURY MR GUARIGLIA TESTIFIED FOR MORE THAN A WEEK IN THE FIRST TRIAL BUT HIS LAWYER SAID HE PLANS TO EXERCISE HIS CONSTITUTIONAL RIGHT AGAINST SELFINCRIMINATION AND WILL NOT TESTIFY AT THE RETRIAL SET FOR MARCH 15 BARUCH WEISS AN ASSISTANT US ATTORNEY HANDLING THE CASE SAID PROSECUTORS WILL MOVE FORWARD DESPITE THE SETBACK HE SAID MARIO MORENO FORMER VICE CHAIRMAN AT WEDTECH IS EXPECTED TO TESTIFY AGAINST MR WALLACH MEANWHILE MR WALLACH CONTINUES HIS APPEAL TO AVERT A RETRIAL ROBERT J GIUFFRA JR ONE OF MR WALLACH'S ATTORNEYS SAID MR WALLACH HAS ASKED THE US SUPREME COURT TO REVIEW THE CASE VICTIMS OF THE UNION CARBIDE CORP GAS LEAK DISASTER IN BHOPAL INDIA CAN'T SEEK DAMAGES IN US COURTS A FEDERAL APPEALS COURT RULED THE SECOND US CIRCUIT COURT OF APPEALS UPHELD A LOWERCOURT DECISION DISMISSING TWO LAWSUITS FILED ON BEHALF OF THE VICTIMS THE APPEALS COURT IN NEW YORK SAID IT HAD TO DEFER TO A 470 MILLION SETTLEMENT REACHED BETWEEN THE DANBURY CONN CHEMICAL COMPANY AND THE INDIAN GOVERNMENT TO GRANT THE VICTIMS OF THE BHOPAL DISASTER MOST OF WHOM ARE CITIZENS OF INDIA ACCESS TO OUR COURTS WHEN INDIA HAS SET UP WHAT IT BELIEVES TO BE THE MOST EFFECTIVE METHOD OF DEALING WITH A DIFFICULT PROBLEM WOULD FRUSTRATE INDIA'S EFFORTS THE APPELLATE PANEL SAID NEARLY 4000 PEOPLE DIED AS A RESULT OF THE 1984 ACCIDENT AT THE UNION CARBIDE PLANT AND MORE THAN 20000 WERE INJURED THE FUND BEGAN MAKING PAYMENTS TO VICTIMS LAST SPRING WHO'S NEWS STANLEY A TWARDY JR FORMER US ATTORNEY FOR CONNECTICUT WILL BECOME A PARTNER AT THE LAW FIRM DAY BERRY & HOWARD MR TWARDY CHIEF OF STAFF FOR CONNECTICUT GOV LOWELL WEICKER JR WILL JOIN THE HARTFORDBASED FIRM'S STAMFORD OFFICE IN MARCH 9301270083 930127 INTERNATIONAL AEROMEXICO MEXICANA CONSIDER PARTNERSHIP MEXICO CITY HURT BY OVERCAPACITY AND A WEAK TRAVEL MARKET MEXICO'S TWO LARGEST AIR CARRIERS AEROMEXICO AND MEXICANA DE AVIACION ARE DISCUSSING POSSIBLE JOINT OPERATING ARRANGEMENTS INCLUDING PLACING BOTH CARRIERS UNDER A SINGLE HOLDING COMPANY AIRLINE EXECUTIVES SAID UNDER A HOLDING COMPANY ARRANGEMENT BEING DISCUSSED IN THE FINANCIAL COMMUNITY AEROMEXICO THE STRONGER OF THE TWO CARRIERS AND HOLDER OF AN 11 STAKE IN MEXICANA IS LIKELY TO GET OPERATING CONTROL THE CARRIERS COULD THEN CUT COSTS BY CONSOLIDATING COMPETITIVE ROUTES AND AUXILIARY SERVICES THE STUMBLING BLOCK FOR SUCH A PARTNERSHIP HAD BEEN OPPOSITION FROM THE MEXICAN GOVERNMENT WHICH PRIVATIZED THE TWO STATECONTROLLED AIRLINES FOUR YEARS AGO BUT ITS RESISTANCE TO THE CREATION OF A GIANT AIR HOLDING COMPANY SEEMS TO BE DIMINISHING AS BOTH CARRIERS BECOME MORE DEEPLY MIRED IN RED INK MEXICANA HAD A LOSS OF 40 MILLION IN THE 1992 THIRD QUARTER AND 70 MILLION IN THE FIRST THREE QUARTERS AEROMEXICO HAD A THIRDQUARTER PROFIT OF 1 MILLION BUT POSTED A LOSS FOR THE NINE MONTHS OF 53 MILLION THE COMPANIES HAVE ALREADY AGREED TO COMBINE GROUND SERVICES AND SHARE A RESERVATIONS SYSTEM BUT ANALYSTS SAY A MORE FARREACHING PARTNERSHIP IS NEEDED IF BOTH ARE TO SURVIVE 9301270082 930127 SOUTHWEST AIR POSTS SHARP PROFIT INCREASE FOR 4TH QUARTER YEAR DALLAS SOUTHWEST AIRLINES CONTINUING TO DEFY THE AIRLINE INDUSTRY TREND TOWARD EVERGREATER LOSSES SAID PROFIT SOARED IN THE FOURTH QUARTER AND FULL YEAR THE LOWFARE NOFRILLS CARRIER SAID FOURTHQUARTER NET INCOME JUMPED TO 272 MILLION OR 29 CENTS A SHARE FROM 88 MILLION OR 10 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 27 TO 4472 MILLION FROM 3508 MILLION DEMAND FOR OUR PRODUCT WAS EXCEPTIONALLY STRONG SAID HERBERT D KELLEHER CHAIRMAN AND CHIEF EXECUTIVE SOUTHWEST'S LOAD FACTOR ROSE TWO PERCENTAGE POINTS TO 633 ITS HIGHEST FOURTHQUARTER LOAD FACTOR SINCE 1980 LOAD FACTOR IS THE PERCENTAGE OF SEATS OCCUPIED BY PAYING PASSENGERS IN ADDITION SOUTHWEST SAID THE AMOUNT OF REVENUE IT RECEIVED FOR EACH PASSENGER MILE FLOWN WAS UP 46 PERHAPS EQUALLY IMPORTANT THE AIRLINE WASN'T DRAWN INTO LAST SUMMER'S FARE WARS AMONG MAJOR CARRIERS BECAUSE ITS TICKET PRICES WERE ALREADY LOW FOR THE YEAR SOUTHWEST POSTED NET OF 1035 MILLION OR 110 A SHARE ON REVENUE OF 168 BILLION INCLUDED WAS A SPECIAL GAIN OF 125 MILLION OR 13 CENTS A SHARE FROM AN ACCOUNTING CHANGE IN 1991 SOUTHWEST HAD NET OF 269 MILLION OR 31 CENTS A SHARE ON REVENUE OF 131 BILLION MR KELLEHER SAID SOUTHWEST'S HIGH LOAD FACTOR APPEARS TO BE CONTINUING AND THAT BOOKINGS FOR FEBRUARY AND MARCH LOOK STRONG 9301270081 930127 RATINGS ON ROCKWELL INTERNATIONAL'S DEBT LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS RATINGS ON 1 BILLION OF ROCKWELL INTERNATIONAL CORP'S DEBT REFLECTING THE RATING AGENCY'S CONCERN THAT WEAKNESS IN SEVERAL OF ROCKWELL'S MARKETS AND INCREASING WORLDWIDE COMPETITION WILL CONSTRAIN THE COMPANY'S PROFIT AND GROWTH POTENTIAL MOODY'S DOWNGRADED THE SENIOR DEBT RATING TO DOUBLEA3 FROM DOUBLEA2 AND CONFIRMED THE PRIME1 SHORTTERM DEBT RATING FOR COMMERCIAL PAPER ROCKWELL BASED IN SEAL BEACH CALIF WOULDN'T COMMENT ON THE DOWNGRADE IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE ROCKWELL ROSE 625 CENTS TO 30625 THE RATING AGENCY SAID ROCKWELL'S GROWTH PROSPECTS ARE LIMITED BY ITS PARTICIPATION IN THE DECLINING AEROSPACE AND DEFENSE MARKETS NOTING THAT ITS EXPOSURE WILL BE EVEN GREATER WITH THE EXPECTED ACQUISITION OF SUNDSTRAND CORP'S COMMERCIAL AVIONICS BUSINESS ROCKWELL'S SPACE BUSINESS WON'T BE A SIGNIFICANT GROWTH CONTRIBUTOR UNLESS THE FEDERAL BUDGET PROVIDES FOR ADDITIONAL SPACE SHUTTLES AND ROCKWELL'S FOREIGN BUSINESS WHICH ACCOUNTS FOR ABOUT 30 OF TOTAL REVENUE IS LIKELY TO BE AFFECTED BY THE SLUGGISH WORLDWIDE ECONOMIC ENVIRONMENT AND INTENSIFYING COMPETITIVE PRESSURES MOODY'S SAID STILL MOODY'S SAID THAT ROCKWELL'S WELLDIVERSIFIED BUSINESS PORTFOLIO AND ITS STRONG BALANCE SHEET WILL ALLOW THE COMPANY TO PRODUCE HEALTHY CASH FLOWS AND MAINTAIN HIGH DEBT PROTECTION MEASURES OVER THE INTERMEDIATE TERM 9301270080 930127 ENTERTAINMENT TIME WARNER PLANS ELECTRONIC SUPERHIGHWAY' BY JOHNNIE L ROBERTS AND MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL TIME WARNER INC PLANS TO BUILD AN ELECTRONIC SUPERHIGHWAY A HIGHCAPACITY COMPUTERIZED NETWORK TO DELIVER MOVIES ON DEMAND INTERACTIVE GAMES HOME SHOPPING AND TELEPHONE SERVICES PROCLAIMING THE EFFORT AS THE DAWNING OF A BRAVE NEW WORLD TIME WARNER CHAIRMAN AND CHIEF EXECUTIVE GERALD R LEVIN SAID THE COMPANY IS BUILDING THE FIRST TWOWAY SYSTEM THIS YEAR IN SUBURBAN ORLANDO FLA AND WILL SWITCH IT ON IN EARLY 1994 AND HE INDICATED THAT TIME WARNER IS TALKING WITH POTENTIAL PARTNERS IN HIGHTECHNOLOGY INDUSTRIES TO HELP LAUNCH ITS SYSTEMS IN CITIES NATIONWIDE WHERE IT HAS LOCAL FRANCHISES AS WELL AS OVERSEAS TIME WARNER'S MOVE IS THE MOST AMBITIOUS YET IN A SPATE OF RECENTLY ANNOUNCED PLANS BY COMPANIES AIMING TO LINK CABLE TELEVISION TELECOMMUNICATIONS COMPUTERS AND CONSUMER ELECTRONICS BUT SUCH COMPANIES AS AMERICAN TELEPHONE & TELEGRAPH CO INTERNATIONAL BUSINESS MACHINES CORP AND THE REGIONAL PHONE COMPANIES ARE SAID TO BE CLOSE BEHIND AS THE INDUSTRY GIANTS SCRAMBLE TO FORM ALLIANCES TO SERVICE THE ENTERTAINMENT AND COMMUNICATIONS NEEDS OF THE INTERACTIVE HOME OF THE FUTURE EVEN SO TIME WARNER'S ANNOUNCEMENT IS OMINOUS FOR LOCAL PHONE CONCERNS PARTICULARLY THE BABY BELLS PHONE COMPANIES STAND TO LOSE A SUBSTANTIAL CHUNK OF REVENUES AND PROFITS IF CABLE OPERATORS CAN LINK BUSINESS AND RESIDENTIAL CUSTOMERS DIRECTLY TO THEIR LONGDISTANCE CARRIERS BYPASSING LOCAL PHONE NETWORKS NEWS OF THE ORLANDO NETWORK SENT BELL COMPANY SHARES SOUTH IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERITECH INC FELL 1125 TO 73 BELL ATLANTIC CORP 375 CENTS TO 5250 BELLSOUTH CORP 125 CENTS TO 5375 NYNEX CORP 1125 TO 84 PACIFIC TELESIS GROUP 50 CENTS TO 4625 SOUTHWESTERN BELL 1 TO 71875 AND U S WEST 50 CENTS TO 3850 GTE CORP SLIPPED 125 CENTS TO 3550 TIME WARNER DROPPED 50 CENTS TO 31875 WITH ITS MOVE MOREOVER TIME WARNER ALSO THRUST THE CABLE INDUSTRY INTO A GROWING DEBATE OVER WHETHER PRIVATE INDUSTRY OR GOVERNMENT SHOULD BUILD A NATIONAL ELECTRONIC SUPERHIGHWAY FOR DATA AN INFRASTRUCTURE IMPROVEMENT STRONGLY BACKED BY THE NEW ADMINISTRATION PRESIDENT CLINTON AND VICE PRESIDENT ALBERT GORE BELIEVE THAT SUCH A SUPERHIGHWAY IS CRITICAL TO IMPROVING THE NATION'S COMPETITIVENESS THE ECONOMY HEALTH CARE AND EDUCATION BUT IN PARTICULAR MR GORE CONTENDS THAT PRIVATE INDUSTRY EVEN IF IN THE UNLIKELY EVENT THAT IT WOULD MAKE THE RISKY INVESTMENT TO BUILD THE SUPERHIGHWAY WOULD RESTRICT ACCESS TO IT A GOVERNMENTCONTROLLED SYSTEM WOULD BE OPEN TO ALL USERS BUT TIME WARNER IS COMMITTED TO BUILDING A PRIVATE NETWORK MR LEVIN SAID HE ADDED THAT OTHER DATA SUPPLIERS COULD HAVE ACCESS MR LEVIN ALSO EMPHASIZED THAT TIME WARNER'S SYSTEM ISN'T SOME FUTURISTIC VISION I DON'T WANT TO WAIT FOR THE 21ST CENTURY WE'RE GOING AHEAD AND BUILDING MR LEVIN SAID WE AREN'T WAITING FOR SOME TEST RESULTS THIS IS NOT SOME EXPERIMENT WITH PEOPLE RUNNING AROUND SIMULATING SEVERAL WEEKS AGO CABLETV GIANT TELECOMMUNICATIONS INC MADE HEADLINES WITH ITS PLANS TO INTRODUCE DIGITAL COMPRESSION TECHNOLOGY THAT WOULD PROVIDE 500 OR MORE CHANNELS IN THE FUTURE TIME WARNER'S PLANNED SYSTEM WOULD GO BEYOND COMPRESSION THE COMPANY EMPHASIZED THE COMPANY SAID IT WOULD BE THE FIRST CABLE OPERATOR TO DEPLOY COMPUTERIZED OR DIGITAL SWITCHING TECHNOLOGY AND COMPUTERIZED STORAGE TO HOLD LIBRARIES OF MOVIES AND OTHER INFORMATION THOSE TWO TECHNOLOGIES WILL ENABLE TIME WARNER TO STORE IN DIGITIZED FORM ITS VAST LIBRARIES OF MOVIES BOOKS AND MAGAZINES AS WELL AS OTHER INFORMATION AND TO DIRECT THEM LIKE A TRAFFIC COP TO CUSTOMERS WHO ORDER SUCH DATA THIS CLEARLY PUTS THEM AT THE FOREFRONT OF TECHNOLOGY TRENDS IN HOME ENTERTAINMENT AND INFORMATION DELIVERY SAID EDWARD J ATORINO OF SALOMON BROTHERS TIME WARNER OFFICIALS SAID THE COMPANY IS SEEKING PROPOSALS FROM EQUIPMENT SUPPLIERS FOR THE GEAR NECESSARY TO BUILD THE SYSTEM WHICH INITIALLY WILL OPERATE IN AN AREA WITH ABOUT 4000 RESIDENTIAL CUSTOMERS THEY DIDN'T ELABORATE ON HOW MUCH IT EXPECTS TO CHARGE CONSUMERS FOR ITS VARIOUS SERVICES AND WHILE COMPANY OFFICIALS INSISTED THE REVENUE POTENTIAL FROM THE NEW SERVICES WOULD BE SUBSTANTIAL SOME IN THE INDUSTRY QUESTIONED WHAT THE LEVEL OF DEMAND WOULD BE AND WHETHER IT WILL BE ENOUGH TO SUPPORT THE LARGE INVESTMENTS REQUIRED TO PROVIDE THE OFFERINGS SECURITIES ANALYSTS AND INDUSTRY EXECUTIVES SAID TIME WARNER'S PLANS HAVE PROFOUND IMPLICATIONS FOR ENTERTAINMENT CONSUMERS AND PURVEYORS AND FOR INDUSTRIES THAT INCLUDE RETAILING REAL ESTATE EDUCATION AND FINANCIAL SERVICES TIME WARNER OFFICIALS SAID THEY ARE CERTAIN TO PROVIDE VIDEOONDEMAND EARLY ON THROUGH THE FULL SERVICE NETWORK THE FIRST OFFERINGS ALSO WILL INCLUDE HOME SHOPPING AND INTERACTIVE VIDEO EDUCATION SERVICES SUCH AS INTERACTIVE VIDEO GAMES THAT ALLOW SUBSCRIBERS IN DIFFERENT HOMES TO PLAY EACH OTHER ON THE NETWORK SIGNALING ITS INTENTIONS TO COMPETE AGAINST PHONE COMPANIES THE COMPANY ALSO SAID IT APPLIED TO THE FEDERAL COMMUNICATIONS COMMISSION FOR AN EXPERIMENTAL LICENSE TO TEST PERSONAL COMMUNICATIONS SERVICES AND TO PROVIDE CONNECTIONS TO LONGDISTANCE CARRIERS AND PICTURE PHONE SERVICES BUSINESS CUSTOMERS WILL BE OFFERED VIDEOCONFERENCING AND HIGHSPEED DATA TRANSPORT COMPANY OFFICIALS NOTED THAT THE TELECOMMUNICATIONS MARKET TOTALS 80 BILLION IN REVENUES TODAY AND PROJECTED IT TO DOUBLE BY THE YEAR 2000 LEADING ITS EFFORTS IN TELECOMMUNICATIONS IS FORMER FCC COMMISSIONER DENNIS R PATRICK NOW PRESIDENT AND CHIEF EXECUTIVE OF TIME WARNER TELECOMMUNICATIONS WHEN THE CABLE TELEVISION COMPANY'S ENTRY INTO TELECOMMUNICATIONS LOCAL PHONE COMPANIES' REVENUES FROM LONGDISTANCE CARRIERS FOR COMPLETING CALLS COULD BE SIGNIFICANTLY ERODED LONGDISTANCE ACCESS IS UNQUESTIONABLY THE SINGLE MOST LUCRATIVE PART OF A BELL COMPANY'S BUSINESS SAID JACK GRUBMAN AN ANALYST WITH PAINE WEBBER INC IT ACCOUNTS FOR ABOUT 25 OF THEIR REVENUES AND CLOSE TO TWOTHIRDS OF THEIR PROFITS THE PHONE COMPANIES PARTICULARLY THE SEVEN REGIONAL BELL COMPANIES FEAR THAT REGULATORY AND LEGAL RESTRICTIONS WILL EXCLUDE THEM FROM POTENTIALLY LUCRATIVE MARKETS FOR VIDEOONDEMAND INTERACTIVE VIDEO AND GAMES AND MULTIMEDIA SERVICES THAT COMBINE VIDEO IMAGES TEXT VOICE AND MUSIC WHAT'S TROUBLING TO US IS THAT TIME WARNER IS ABLE TO DO IT AND WE ARE NOT SAID TOM TAUKE HEAD OF NYNEX'S WASHINGTON OFFICE AND A FORMER CONGRESSMAN FROM IOWA LOCAL PHONE COMPANIES ARE BARRED UNDER THE 1984 CABLE ACT FROM PROVIDING CABLE SERVICES WITHIN THEIR TERRITORIES MOREOVER THE CONSENT DECREE THAT BROKE UP THE BELL SYSTEM PROHIBITS THE SEVEN REGIONAL BELL COMPANIES FROM OFFERING LONGDISTANCE SERVICES AND FROM MANUFACTURING TELECOMMUNICATIONS EQUIPMENT EVEN IF RESTRICTIONS WERE LIFTED LOCAL PHONE COMPANIES WOULD HAVE TO INVEST AN ESTIMATED 200 BILLION OR MORE TO INSTALL FIBEROPTIC LINES AND HIGHCAPACITY SWITCHING EQUIPMENT 9301270079 930127 NEVER MIND ENERGY TAX CONSUMPTION BY ROBERT M GIORDANO IT LOOKS LIKE THE CLINTON ADMINISTRATION'S FIRST BIG EFFORT AT DEFICIT REDUCTION MAY BE AN ENERGY TAX UNFORTUNATELY AN ENERGY TAX IS UNLIKELY TO DO THE JOB HOWEVER DESIRABLE IT MIGHT BE ON ENVIRONMENTAL OR NATIONAL SECURITY GROUNDS ITS REVENUES WILL BE INSUFFICIENT A QUADRUPLING OF THE FEDERAL GAS TAX FOR EXAMPLE WOULD RAISE LESS THAN 50 BILLION A YEAR BUT THE DEFICIT STILL HAS TO BE ADDRESSED THE BEST WAY WOULD BE TO CUT SPENDING OF COURSE BUT ACHIEVING A CONSENSUS ON CUTTING ENTITLEMENT SPENDING BY FAR THE BIGGEST CHUNK OF THE BUDGET WILL TAKE YEARS EVEN IN THE CASE OF HEALTH CARE GIVEN THE TENACITY OF SPECIAL INTERESTS IT MAY NOT BE POSSIBLE AT ALL IN THE ABSENCE OF A REAL ECONOMIC CRISIS THUS THERE IS NO GETTING AROUND THE NEED FOR INCREASING REVENUE A TAX ON CONSUMPTION IS THE BEST WAY OF MEETING THIS NEED IT IS THE ONLY TAX THAT CAN RAISE ENOUGH REVENUE TO MAKE A SERIOUS DENT IN THE DEFICIT AND DO SO WITH A MINIMUM OF ECONOMIC DISTORTION RAISING INCOME TAXES ON THE RICH IS NOT THE ANSWER THERE ARE SIMPLY NOT ENOUGH RICH FOLKS AROUND ONLY ABOUT 5 OF ALL TAX RETURNS AND 20 OF TAX LIABILITIES ARE ACCOUNTED FOR BY PEOPLE WITH INCOMES GREATER THAN 200000 BESIDES TAXING INCOME UNDERMINES WORK EFFORT AND IS MOST PRONE TO RESULT IN A MISALLOCATION OF RESOURCES BY CONTRAST SEVERAL KEY BENEFITS OF A CONSUMPTION TAX READILY COME TO MIND FIRST SUCH A TAX WOULD REMOVE THE FEAR OF A FURTHER DEFICIT EXPLOSION AND THUS INDUCE SOME FURTHER DECLINE IN INTEREST RATES IT WOULD ALSO HELP RESTRAIN IF NOT REVERSE A RISE IN THE DOLLAR EXCHANGE RATE A STABLE OR LOWER DOLLAR IN TURN WOULD HELP PRESERVE THE COMPETITIVE ADVANTAGE IN EXPORT MARKETS THAT IS NOW SO IMPORTANT TO THE ECONOMY SECOND A CONSUMPTION TAX ESSENTIALLY GUARANTEES A RELIABLE SOURCE OF LARGE REVENUES DOWN THE ROAD IN PARTICULAR IT WOULD BROADEN THE TAX BASE BY ENSNARING INCOME EARNED IN THE UNDERGROUND ECONOMY BUT SPENT IN THE MEASURED ONE THIS WOULD BE REAL MONEY NOT SOME VAGUE CALCULATION OF FUTURE REVENUE BASED ON WISHEDFOR SPENDING CUTS OR COUNTERPRODUCTIVE INCOMETAX HIKES ROUGH CALCULATIONS SUGGEST THAT A CONSUMPTION TAX OF ONLY 5 TO 10 COULD RAISE APPROXIMATELY 100 BILLION TO 150 BILLION PER YEAR DEPENDING ON THE EXACT TAX BASE SELECTED BY COMPARISON CONSUMPTION TAX RATES IN EUROPEAN COUNTRIES ARE COMMONLY 15 TO 20 THIRD TAXING CONSUMPTION COULD BOLSTER THE ECONOMY'S LONGTERM GROWTH BY EXEMPTING CAPITAL GOODS IT WOULD ENCOURAGE PRODUCTIVE INVESTMENT THE TAX WOULD ENCOURAGE MORE SAVING TOO BY RAISING THE COST OF CONSUMING TODAY VS TOMORROW IN ADDITION IT WOULD ALLOW TAXES ON CAPITAL AND MARGINAL INCOME TAX RATES FOR LOW AND MIDDLEINCOME HOUSEHOLDS TO BE CUT INDEED A CONSUMPTION TAX IS THE ONLY PRACTICAL WAY TO FUND INCOME TAX RELIEF FOR PEOPLE ON THE LOWER END OF THE INCOME SCALE THE TWO MOST FORCEFUL OBJECTIONS TO THE CONSUMPTION TAX HAVE TO DO WITH ITS REGRESSIVITY AND THE FEAR THAT A CONSUMPTION TAX WOULD ACT LIKE A TROJAN HORSE FOR MORE RECKLESS TAXANDSPEND POLICIES THESE OBJECTIONS ARE EASILY MET CONSUMPTION LEVIES DO INDEED IMPOSE A GREATER BURDEN ON CITIZENS WITH LOWER INCOMES BUT THE TAX CAN BE STRUCTURED TO CORRECT THIS BIAS AND STILL RAISE REVENUES MANY STAPLES FOR EXAMPLE COULD BE EXEMPTED OR A NEGATIVE INCOME TAX COULD BE INTRODUCED FOR HOUSEHOLDS WITH INCOMES BELOW A CERTAIN LEVEL THIS WOULD HELP PRESERVE THE FUNDAMENTALLY PROGRESSIVE NATURE OF THE TAX CODE WITHOUT A DOUBT A CONSUMPTION TAX COULD BE USED AS A BLANK CHECK FOR MORE SPENDING SPECIFIC GUIDELINES AND CONSTRAINTS HOWEVER COULD BE WRITTEN INTO THE LEGISLATION THAT WOULD LIMIT FUTURE TAX HIKES FOR EXAMPLE A TWOTHIRDS MAJORITY VOTE OF CONGRESS COULD BE REQUIRED TO CHANGE THE RATE OR PERHAPS THE SIZE OF ANY INDIVIDUAL RATE HIKE COULD BE LIMITED TO A FEW POINTS AND ALLOWED ONLY AT CERTAIN INTERVALS ALL OF THIS WILL TAKE TIME OF COURSE BUT IT IS WELL WORTH DOING UP TO NOW THE BALLOONING FEDERAL BUDGET DEFICIT HAS BEEN MORE OF A PROBLEM FOR ECONOMISTS THAN THE ECONOMY OUTPUT GREW THROUGHOUT THE 1980S INFLATION REMAINED LOW AND INTEREST RATES DECLINED ALL CONTRARY TO EXPECTATIONS THE SITUATION HOWEVER IS STARTING TO CHANGE AND A MORE SERIOUS EFFORT MUST BE MADE TO CORRECT THE BUDGET'S IMBALANCES IF LEFT ALONE THE DEFICIT AND PUBLIC DEBT RELATIVE TO GROSS DOMESTIC PRODUCT WILL GO NOTABLY HIGHER IN COMING YEARS EXPOSING THE ECONOMY TO REAL DANGERS MOST NOTICEABLY IT WILL IMPAIR THE CLINTON ADMINISTRATION'S ABILITY TO USE FISCAL POLICY AS A STIMULUS WEAPON NOW IS THE TIME TO START PLANNING FOR THE EVENTUALITY OF A BROADBASED TAX ON CONSUMPTION BEFORE THE BUDGET DEFICIT BECOMES A DESPERATE PROBLEM A BIPARTISAN STUDY SPONSORED BY SENS SAM NUNN D GA AND PETE DOMENICI R NM RECENTLY ACKNOWLEDGED AS MUCH WHEN IT RECOMMENDED THAT THE US ADOPT SUCH A LEVY AS PART OF A REFORM OF THE TAX SYSTEM A CONSUMPTION TAX WILL CERTAINLY BE NO PANACEA FOR THE NATION'S FISCAL ILLS IT WILL DO MORE HOWEVER THAN ANY OF THE OTHER DEFICIT REDUCTION PLANS NOW UNDER CONSIDERATION MR GIORDANO IS DIRECTOR OF ECONOMIC RESEARCH AT GOLDMAN SACHS 9301270078 930127 CLINTON SEEKS TO CUT JOBS SALARIES AT THE WHITE HOUSE WASHINGTON PRESIDENT CLINTON IS SEEKING TO SLASH SALARIES AND JOBS IN THE WHITE HOUSE IN AN EFFORT TO KEEP HIS CAMPAIGN PLEDGE TO CUT EXECUTIVEOFFICE EXPENSES 25 ADMINISTRATION SOURCES SAID SALARIES FOR MANY WHITE HOUSE EMPLOYEES ARE BEING SET LOWER THAN WHAT PRESIDENT BUSH PAID HIS AIDES TO PERFORM THE SAME DUTIES IN ADDITION MOST WHITE HOUSE JOBS BELOW THE LEVEL OF ASSISTANT TO THE PRESIDENT ARE BEING CAPPED AT 95000 A YEAR UNLESS THERE ARE EXTENUATING CIRCUMSTANCES SAID ONE PERSON INTERVIEWED FOR A POSITION WHILE STAFF CUTS ARE EXPECTED IN MANY WHITE HOUSE OFFICES INCLUDING COMMUNICATIONS POLITICAL AFFAIRS AND PUBLIC LIAISON THE WHITE HOUSE ALSO HAS CREATED NEW POSITIONS THAT COULD MAKE IT DIFFICULT FOR MR CLINTON TO ACHIEVE HIS GOAL OF CUTTING THE OVERALL WHITE HOUSE STAFF SOME WHITE HOUSE EMPLOYEES HAVE VOICED CONCERN THAT THEY MAY MAKE LESS MONEY THAN PEOPLE DOING THE SAME JOBS IN VARIOUS GOVERNMENT AGENCIES AND SOME GOVERNMENT OFFICIALS ARE CONCERNED THAT PEOPLE WON'T TAKE JOBS BECAUSE OF THE PAY LEVEL 9301270077 930127 SPORT SUPPLY'S RIDDELL BID DALLAS SPORT SUPPLY GROUP INC SAID IT WITHDREW AN OFFER TO ACQUIRE RIDDELL SPORTS INC MICHAEL J BLUMENFELD SPORT SUPPLY'S CHAIRMAN SAID RIDDELL'S MANAGEMENT HAS NOT EMBRACED THE PROPOSAL WITH ENTHUSIASM WITHOUT THE COMPANY'S COOPERATION HE ADDED NEGOTIATIONS WOULD BE VERY DIFFICULT STEPHEN TANNEN RIDDELL'S PRESIDENT AND CHIEF OPERATING OFFICER WOULDN'T COMMENT ON SPORT SUPPLY'S ACTION MR BLUMENFELD WHO HOLDS 7 OF RIDDELL'S STOCK HAS BEEN CRITICAL OF THAT COMPANY'S MANAGEMENT 9301270076 930127 INTERNATIONAL BRITAIN'S GLAXO TAPS DIRECTOR TO OVERSEE NEW DRUG BUSINESS SPECIAL TO THE WALL STREET JOURNAL LONDON INDICATING ITS READINESS TO JUMP INTO A NEW AREA GLAXO HOLDINGS PLC NAMED A BOARD MEMBER TO OVERSEE THE DEVELOPMENT OF AN OVERTHECOUNTER DRUG BUSINESS THE MOVE WHILE NOT UNEXPECTED REPRESENTS AN ABOUTFACE FOR THE COMPANY AND ITS CHAIRMAN PAUL GIROLAMI BUOYED BY THE SUCCESS OF ITS FLAGSHIP ULCER DRUG ZANTAC GLAXO IN THE LATE 1980S DIVESTED ITSELF OF NONCORE UNITS TO CONCENTRATE EXCLUSIVELY ON MOREPROFITABLE PRESCRIPTION MEDICINES BUT AMID RAPIDLY CHANGING INDUSTRY TRENDS GLAXO'S RESEARCH LABS COULDN'T CHURN OUT ENOUGH NEW MEDICINES TO SUSTAIN SUCH A NARROW FOCUS AND MANY SAY GLAXO DEPENDS TOO MUCH ON ZANTAC WHICH ACCOUNTS FOR 44 OF SALES AND HAS BEEN LOSING MARKET SHARE TO CHEAPER RIVALS THE PHARMACEUTICAL INDUSTRY IS MOVING TOWARD MORE AND MORE USE OF NONPRESCRIPTION MEDICINES SAID PETER LAING A LONDONBASED DRUG ANALYST WITH SOCIETE GENERALE STRAUSS TURNBULL SECURITIES THE SHIFT REFLECTS BROAD CONCERN AMONG INSURERS AND CONSUMERS ALIKE ABOUT SPIRALING HEALTHCARE COSTS GLAXO SAID ARTHUR M PAPPAS WILL HAVE RESPONSIBILITY FOR DEVELOPING THE NEW BUSINESS MR PAPPAS A 48YEAROLD BIOLOGIST WORKED FOR SEVERAL US DRUG MAKERS BEFORE JOINING GLAXO IN FEBRUARY 1989 MR PAPPAS HAS HEADED GLAXO'S OPERATIONS IN THE ASIA PACIFIC REGION AS WELL AS IN LATIN AMERICA HE'LL RETAIN THE LATIN AMERICA POST AND ADD RESPONSIBILITY FOR GLAXO'S CANADIAN UNIT AFTER RELOCATING IN MARCH TO THE US FROM WHICH HE'LL STEER THE COMPANY'S FLEDGLING OVERTHECOUNTER DRIVE TO HAVE A MAIN BOARD DIRECTOR RESPONSIBLE FOR DEVELOPING THE OTC BUSINESS IS A PRETTY SENSIBLE MOVE SAID MR LAING IT WILL GIVE WEIGHT TO THE VIEW THAT THEY ARE IN THE OTC BUSINESS FOR REAL GLAXO ALSO NAMED TO THE BOARD SEAN LANCE HEAD OF GLAXO'S UK MARKETING UNIT AND NEIL MAIDMENT A GLAXO VETERAN BASED IN HONG KONG WHO WILL SUCCEED MR PAPPAS AT THE HELM OF THE ASIA PACIFIC REGION 9301270075 930127 SEN BRYAN IS SELECTED TO HEAD ETHICS COMMITTEE WASHINGTON THE SENATE DEMOCRATIC LEADERSHIP PREVAILED ON NEVADA SEN RICHARD BRYAN TO LEAD THE CHAMBER'S ETHICS COMMITTEE WHICH HAS SEEN A WHOLESALE CHANGE IN ITS MAKEUP SINCE THE PREVIOUS CONGRESS FIVE OF THE SIX MEMBERS WILL BE NEW TO THE PANEL WHICH ALREADY FACES A SEXUAL HARASSMENT CASE INVOLVING SEN BOB PACKWOOD R ORE THE LAST CHAIRMAN SEN TERRY SANFORD D NC WAS DEFEATED FOR REELECTION IN NOVEMBER AND THERE HAVE BEEN A SERIES OF DEPARTURES AS MEMBERS IN BOTH PARTIES HAVE SOUGHT TO AVOID DUTY ON THE COMMITTEE MR BRYAN STILL IN HIS FIRST TERM AND FACING ELECTION HIMSELF NEXT YEAR IS THE SOLE HOLDOVER HE WILL BE JOINED ON THE DEMOCRATIC SIDE BY SENS BARBARA MIKULSKI OF MARYLAND AND THOMAS DASCHLE OF SOUTH DAKOTA REPUBLICANS RECENTLY NAMED SENS MITCH MCCONNELL OF KENTUCKY TED STEVENS OF ALASKA AND BOB SMITH OF NEW HAMPSHIRE TO THE COMMITTEE WITH MR MCCONNELL DESIGNATED AS THE RANKING REPUBLICAN AND VICE CHAIRMAN 9301270074 930127 DIVIDEND NEWS WESTMORELAND COAL CO WESTMORELAND COAL CO PHILADELPHIA SAID ITS BOARD DECIDED TO SUSPEND THE DIVIDEND OF EIGHT CENTS A SHARE FOR THE FIRST QUARTER TO CONSERVE CASH AND MEET LENDER REQUIREMENTS THE COMPANY HAS ABOUT 79 MILLION SHARES OUTSTANDING 9301270073 930127 BOEING REDUCES ITS PRODUCTION OF ALL JETLINERS LACK OF DEMAND IS CITED COMPANY SAYS NET FELL 11 FOR FOURTH QUARTER BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO FINALLY GAVE IN TO THE STAGGERING PRESSURE OF THE AIRLINEINDUSTRY RECESSION SHARPLY CHOPPING PRODUCTION RATES FOR ALL ITS AIRCRAFT MODELS INCLUDING A 40 REDUCTION FOR THE HIGHLY PROFITABLE 747 JUMBO JET LINE WORD OF THE PLANNED CUTBACK WHICH COULD TRIM AT LEAST 15000 MORE JOBS BY MID1994 BY SOME ESTIMATES CAME AS THE SEATTLEBASED COMPANY REPORTED THAT FOURTHQUARTER NET INCOME SLID 11 TO 357 MILLION OR 105 A SHARE AFTER AN ACCOUNTING ADJUSTMENT FOR RETIREE HEALTHCARE COSTS IN THE YEAREARLIER PERIOD NET WAS 403 MILLION OR 117 A SHARE SALES WERE 749 BILLION A 4 DECREASE FROM 775 BILLION A YEAR EARLIER FOR THE YEAR BOEING SAID IT HAD NET INCOME OF 552 MILLION OR 162 A SHARE A DROP OF 65 FROM 156 BILLION OR 456 A SHARE A YEAR EARLIER BOEING SAID THAT WITHOUT THE ACCOUNTING CHANGES INCLUDING A ONETIME ADJUSTMENT OF MORE THAN 1 BILLION IT WOULD HAVE HAD 1992 EARNINGS OF 163 BILLION OR 481 A SHARE AND EARNINGS FOR THE LATEST QUARTER OF 377 MILLION OR 111 A SHARE SALES FOR THE YEAR TOPPED 3018 BILLION AN INCREASE OF 29 FROM 2931 BILLION A YEAR EARLIER BOEING SHARES FELL 1375 TO 3550 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY'S FINANCIAL NEWS WAS OVERSHADOWED BY ITS ANNOUNCEMENT THAT IT WILL REDUCE PRODUCTION OF ITS 737 747 757 AND 767 MODELS BECAUSE OF THE SUSTAINED FINANCIAL PROBLEMS OF MANY OF THE WORLD'S AIRLINES THE COMPANY SAID 737 PRODUCTION WILL DECREASE TO 10 FROM 14 A MONTH IN OCTOBER WHILE 747 PRODUCTION WILL BE CUT TO THREE FROM FIVE A MONTH IN THE SECOND QUARTER OF 1994 BOEING ALSO SAID 757 PRODUCTION WHICH ALREADY WAS TO BE REDUCED TO FIVE A MONTH THIS NOVEMBER FROM THE CURRENT RATE OF 85 A MONTH WILL NOW REACH THE NEW LEVEL IN SEPTEMBER THE 767 NOW PRODUCED AT A RATE OF FIVE A MONTH WAS SCHEDULED TO FALL TO FOUR A MONTH IN NOVEMBER IT NOW WILL DROP TO THREE A MONTH IN OCTOBER A BOEING STATEMENT SAID THE COMPANY HASN'T YET DETERMINED THE IMPACT ON ITS WORK FORCE WHICH INCLUDES ABOUT 99000 EMPLOYEES IN WASHINGTON IT SAID ONLY THAT IT IS EXPECTED TO BE SIGNIFICANT AND THAT DETAILS WILL BE ANNOUNCED AS SOON AS POSSIBLE SEVERAL ESTIMATES SUGGEST THE COMPANY WHICH ALREADY HAS BEEN REDUCING ITS WORK FORCE COULD ELIMINATE AS FEW AS 15000 OR AS MANY AS 20000 JOBS BASED ON THE SIZE OF THE PRODUCTION SLOWDOWN WHILE WE REMAIN OPTIMISTIC ABOUT THE LONGERTERM PROSPECTS FOR OUR BUSINESS THE PRESENT REALITY IS SOBERING SAID DEAN THORNTON PRESIDENT OF THE BOEING COMMERCIAL AIRPLANE GROUP AS PAINFUL AS THESE CUTS ARE THEY ARE CRITICAL TO HELPING OUR CUSTOMERS REGAIN THEIR FINANCIAL HEALTH MR THORNTON ADDED THERE'S NO ESCAPING THAT THIS WILL MEAN HARDSHIP AND JOB LOSSES AND WE'LL DO EVERYTHING WE CAN TO MINIMIZE THE IMPACT BOEING SAID ITS CUTS ARE NOT TIED TO ANY PARTICULAR CUSTOMER HOWEVER RECENT OR IMPENDING ORDER DEFERRALS AND CANCELLATIONS BY BIG CARRIERS SUCH AS UNITED AIRLINES JAPAN AIR LINES AND BY IRISH LESSOR GPA GROUP PLC ARE AMONG THOSE THAT HAVE HAD AN EFFECT SEPARATELY AMR CORP'S AMERICAN AIRLINES UNIT ANNOUNCED THAT IT IS DEFERRING ORDERS FOR FOUR BOEING 767S AND FOUR 757S BOEING ALSO HAS COMPLETED TALKS ON A SECOND ROUND OF DELIVERY DEFERRALS FROM UNITED AIRLINES WHICH HAS SAID IT IS CONTEMPLATING FURTHER DELAYS IN DELIVERY OF ITS BIGGEST BOEING JETS AND POSSIBLE FURTHER ORDERS FROM EUROPE'S AIRBUS INDUSTRIE CONSORTIUM A PERSON FAMILIAR WITH THE TALKS SAID THE UAL CORP UNIT HAS AGREED TO NO FURTHER DELAYS IN DELIVERY OF THE BOEING'S NEW 777 WIDEBODY JETS BUT DEFERRALS OF ITS 747 JUMBO JETS GREATLY AFFECTED BOEING'S LATEST DECISIONS ON PRODUCTION RATES IN REPORTING EARNINGS BOEING SAID IT HAD DELIVERED 446 JETS LAST YEAR UP FROM 435 IN 1991 APPROXIMATELY 60 WENT TO NONUS CUSTOMERS UNDERSCORING CONCERNS ABOUT HOW SHARP BOEING PRODUCTION CUTS MIGHT AFFECT US BALANCEOFTRADE FIGURES FOR THE YEAR AHEAD FOURTHQUARTER DELIVERIES DROPPED TO 102 FROM 109 THE COMPANY SAID HEAVY COSTS FOR DEVELOPMENT FOR ITS NEW 777 MODEL WHICH IT IS SCHEDULED TO BEGIN DELIVERING TO UNITED IN 1995 PUSHED RESEARCH AND DEVELOPMENT COSTS UP 31 LAST YEAR TO 184 BILLION BOEING PROJECTED THAT SUCH EXPENSES WOULD RISE TO MORE THAN 17 BILLION IN 1993 INCLUDING EARLY DESIGN COSTS FOR 767 CARGO JETS RECENTLY ORDERED BY UNITED PARCEL SERVICE BOEING NOTED THAT AS AIRLINEINDUSTRY PROBLEMS MULTIPLIED THE COMPANY'S BACKLOG OF FIRM ORDERS HAD SLIPPED TO 826 BILLION AT THE END OF 1992 FROM 928 BILLION A YEAR EARLIER OPERATING PROFIT FOR ITS COMMERCIAL JET DIVISION WAS ABOUT 199 BILLION DOWN 11 FROM 224 BILLION A YEAR EARLIER IT SAID ANOTHER TREND WAS MORE THAN A DOUBLING OF LAST YEAR'S CUSTOMER FINANCING SUCH AS LOAN GUARANTEES TO HELP HARDPRESSED CARRIERS BUY JETS TO 23 BILLION FROM 11 BILLION IN 1991 THE COMPANY SAID ITS DEFENSE & SPACE GROUP RETURNED TO PROFITABILITY IN 1992 WITH OPERATING EARNINGS OF 204 MILLION ON SALES OF 54 BILLION BOEING SAID THE UNIT'S SALES ARE LIKELY TO DECLINE TO ABOUT 45 BILLION RANGE FOR THE NEXT SEVERAL YEARS 9301270072 930127 INTERNATIONAL BRIEF STORA AB PRELIMINARY DATA PUT LOSS AT 1975 MILLION FOR 1992 SWEDEN'S STORA AB SAID IT WILL REPORT A HUGE PRETAX LOSS FOR 1992 BUT BUOYED BY TOUGH COST CUTTING AND A HEFTY DEVALUATION OF THE KRONA THE COMPANY HELD OUT PROSPECTS FOR A TURNAROUND THIS YEAR IN A PRELIMINARY REPORT EUROPE'S BIGGEST PULP AND PAPER CONCERN ESTIMATED THAT IT HAD A PRETAX LOSS OF 14 BILLION KRONOR 1975 MILLION LAST YEAR THE COMPANY HAD A PRETAX PROFIT OF 11 BILLION KRONOR IN 1991 STORA ALSO SAID IT HAD AN OPERATING LOSS OF 900 MILLION KRONOR LAST YEAR AND ADDED THAT 1992 RESULTS WOULD INCLUDE A ONETIME CHARGE OF 500 MILLION KRONOR FOR RESTRUCTURING COSTS THE COMPANY SAID IT WILL BENEFIT IN 1993 FROM THE DEPRECIATION OF THE KRONA AS NET EXPORTS ARE EXPECTED TO AMOUNT TO ROUGHLY 12 BILLION KRONOR WHILE AT LEAST PART OF THE DEVALUATION WINDFALL HAS BEEN OFFSET BY A FURTHER DECLINE IN PRICES OF MANY PAPER PRODUCTS THE KRONA'S ROUGHLY 20 DEPRECIATION TO DATE IS EXPECTED TO BALLOON PROFITS EARNED ABROAD WHEN TRANSLATED INTO THE SWEDISH CURRENCY 9301270071 930127 BUSINESS BRIEF SEA CONTAINERS LTD NET IN '92 ROSE 14 TO 19 ON A 4 REVENUE INCREASE SEA CONTAINERS LTD EXPECTS TO REPORT A 14 TO 19 INCREASE IN 1992 EARNINGS PRESIDENT JAMES B SHERWOOD SAID THE HAMILTON BERMUDA SHIPPING CONTAINER AND FERRY COMPANY EXPECTS TO POST NET INCOME OF ABOUT 37 MILLION TO 39 MILLION OR ABOUT 210 TO 225 A SHARE FOR THE YEAR MR SHERWOOD SAID IT HAD EARNINGS OF 327 MILLION OR 195 A SHARE IN 1991 STRIPPING OUT PREFERRED DIVIDENDS OF 163 MILLION WILL RESULT IN 1992 EARNINGS OF 21 MILLION TO 225 MILLION THE COMPANY SAID SEA CONTAINERS EXPECTS TO POST A 4 GAIN IN 1992 REVENUE TO ABOUT 400 MILLION FROM 385 MILLION MR SHERWOOD SAID THE COMPANY EXPECTS TO REPORT FOURTHQUARTER EARNINGS WITHIN A BROAD RANGE OF THREE CENTS TO 18 CENTS A SHARE IT HAD A LOSS OF 40 CENTS A SHARE IN THE YEAREARLIER QUARTER 9301270070 930127 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO COMPANY EXPECTS 1992 LOSS OF 660 MILLION ON CHARGES GOODYEAR TIRE & RUBBER CO AKRON OHIO SAID IT WILL HAVE A LOSS OF ABOUT 660 MILLION FOR 1992 THE RESULT MAINLY OF NONCASH CHARGES IT EXPECTS TO POST EARNINGS BEFORE EXTRAORDINARY ITEMS FOR THE YEAR OF 360 MILLION TO 370 MILLION OR ABOUT 5 A SHARE THE FIGURES INCLUDE SEVERAL NONRECURRING ITEMS RECORDED IN THE FOURTH QUARTER INCLUDING A GAIN ON THE SALE OF A POLYESTER OPERATION A LOSS ON A PENDING SALE OF THE COMPANY'S RUBBER ROOFING BUSINESS AND A CHARGE OF 38 MILLION FOR WORK FORCE CUTS BUT THEY DON'T INCLUDE CHARGES RELATING TO THE EARLY RETIREMENT OF DEBT AND CHANGES IN HOW THE TIRE MAKER ACCOUNTS FOR RETIREE HEALTH BENEFITS AND INCOME TAXES IN 1991 GOODYEAR HAD NET INCOME OF 966 MILLION OR 161 A SHARE SALES SHOULD CLIMB TO 117 BILLION FOR 1991 A RECORD FOR THE WORLD'S SECONDBIGGEST TIRE MAKER IN 1991 GOODYEAR HAD 109 BILLION IN SALES THE COMPANY NOTED THAT IT SLASHED DEBT TO 19 BILLION AT DEC 31 FROM 37 BILLION IN MID1991 9301270069 930127 MANAGEMENT CORPORATE SHAKEUPS SPAWN PLETHORA OF VICE CHAIRMEN BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL VICE CHAIRMAN THE TITLE SOUNDS WONDERFUL SOMETIMES IT SIGNIFIES A BIG JOB WITH A LOT OF POWER AND SOMETIMES IT IS JUST A EUPHEMISM FOR HAS BEEN BUT WHATEVER IT MEANS THE POSITION IS GETTING A WORKOUT THESE DAYS YESTERDAY INTERNATIONAL BUSINESS MACHINES CORP USED THE TITLE FOR BOTH ROLES AS PART OF A WIDERANGING UPHEAVAL IN ITS EXECUTIVE SUITE THE COMPUTER GIANT SAID JACK D KUEHLER 60 YEARS OLD RELINQUISHED THE PRESIDENCY TO BECOME A BOARD VICE CHAIRMAN A SIGN THAT MR KUEHLER HAS MOVED OUT OF THE CENTER OF POWER IN ADDITION IBM BROUGHT BACK PAUL J RIZZO A RETIRED EXECUTIVE AS A VICE CHAIRMAN AND NAMED HIM CHIEF FINANCIAL OFFICER THIS MAKES MR RIZZO AN IMPORTANT PARTICIPANT IN RUNNING IBM WHILE IT HUNTS FOR SOMEONE TO SUCCEED JOHN C AKERS AS CHIEF EXECUTIVE FOR A VARIETY OF REASONS A NUMBER OF BIG CONCERNS HAVE APPOINTED VICE CHAIRMEN JUST SINCE LAST MONTH AMONG THEM AMERITECH MONSANTO CO SPEAR FINANCIAL SERVICES INC US BANCORP OLIN CORP AND UPJOHN CO ON MONDAY AMERICAN EXPRESS CO DEMOTED HOWARD L CLARK JR TO VICE CHAIRMAN FROM CHAIRMAN OF ITS SHEARSON LEHMAN BROTHERS BROKERAGE UNIT IN MANY CASES THE CURRENT RASH OF MANAGEMENT SHAKEUPS IS PROMPTING BIG COMPANIES TO NAME VICE CHAIRMEN IN ORDER TO BETTER HANDLE DIFFICULT TRANSITIONS OF POWER WE MAY SEE MORE USE OF THE VICE CHAIRMANSHIP POSITION BECAUSE RESTRUCTURING OF SENIOR MANAGEMENT IS SOMETHING WE ARE GOING TO SEE MORE OF IN COMING YEARS AT MAJOR CORPORATIONS PREDICTS DAVID NADLER PRESIDENT OF DELTA CONSULTING GROUP INC NEW YORK THE PROLIFERATION OF TITLE INFLATION MEANS MORE COMPANIES MUST NAME VICE CHAIRMEN IN AWKWARD GOVERNANCE SITUATIONS WHERE THEY DON'T KNOW WHAT ELSE TO DO WITH SOMEBODY ADDS DEBORAH CORNWALL MANAGING VICE PRESIDENT OF KORN/FERRY ORGANIZATIONAL CONSULTING AN ARM OF RECRUITERS KORN/FERRY INTERNATIONAL BUT AN AWKWARD SOLUTION TO AN AWKWARD SITUATION AT THE TOP CAN SOW CONFUSION AMONG THE TROOPS MANAGEMENT EXPERTS SAY AT IBM FOR INSTANCE WORK WILL COME TO A GRINDING HALT UNTIL PEOPLE CAN FIGURE OUT WHO TRULY IS IN POWER SUGGESTS DEE SODER PRESIDENT OF ENDYMION AN EXECUTIVEADVISORY FIRM IN NEW YORK SHE SAYS SHE HAS ADVISED COMPANIES WHOSE VICE CHAIRMEN HAD CLEARER ROLES THAN AT IBM AND THERE STILL WERE PROBLEMS BECAUSE THE NEXT LEVEL DOWN DIDN'T KNOW WHO WAS THE BOSS DR SODER EXPECTS THAT MESSRS KUEHLER AKERS AND RIZZO WILL EACH TRY TO FLEX THEIR MUSCLES WITHIN THE MAMMOTH IBM BUREAUCRACY YOU ALMOST HAVE A SITUATION WHERE YOU HAVE ELEPHANTS BUMPING UP AGAINST EACH OTHER BECAUSE YOU HAVE THREE POWERFUL PEOPLE WITH LARGE EGOS THE PSYCHOLOGIST ADDS INDEED THE DIFFICULTY IN EASING OUT A SENIOR EXECUTIVE WITH A LARGE EGO AND BIG PAYCHECK IS OFTEN THE REASON THAT A COMPANY NAMES AN INDIVIDUAL VICE CHAIRMAN THE POST CAN BE A PARKING PLACE FOR A FAILED CONTENDER FOR THE CEO SLOT OBSERVES DONALD FREY A RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF BELL & HOWELL CO AND A MEMBER OF SEVERAL CORPORATE BOARDS IT IS SOME FORM OF INDUSTRIAL CHARITY TO SAVE FACE AND HAVE HIM REACH AGE 65 AND GET HIS RETIREMENT BENEFITS MR FREY CONTINUES THIS TYPE OF VICE CHAIRMAN GETS LITTLE MORE THAN A NICE OFFICE AND A SECRETARY AND SOME FORMALISTIC PAPERSHUFFLING ROLE HE SAYS NOT SURPRISINGLY EXECUTIVES ACCUSTOMED TO BROAD OPERATIONAL AUTHORITY CAN BECOME FRUSTRATED WITH SUCH A LIMITED ROLE IN MAY 1991 THOMAS C GRAHAM LEFT THE NOMINAL NO 2 SPOT AT USX CORP A BIG STEEL AND ENERGY COMPANY THE MOVE SURPRISED INVESTORS WHO HAD EXPECTED HIM TO REMAIN UNTIL HE TURNED 65 IN JANUARY 1992 BUT INSIDERS SAID HE HAD BEEN UNHAPPY SINCE FALL 1990 WHEN HE WAS NAMED VICE CHAIRMAN IN CHARGE OF USX'S STEEL AND DIVERSIFIEDPRODUCTS GROUP A LARGELY CEREMONIAL POST FOR A MAN ONCE CONSIDERED IN THE RUNNING FOR THE USX CHAIRMANSHIP IN LEAVING USX MR GRAHAM SAID I PREFER A HANDSON ROLE AND THAT REALLY ISN'T APPROPRIATE HERE ANY LONGER I WAS FUNCTIONING MORE AS AN ELDER STATESMAN A POSITION I DON'T PARTICULARLY RELISH BUT HE LANDED ON HIS FEET FOR A BRIEF TIME HE HEADED WASHINGTON STEEL CORP NOW OWNED BY LUKENS INC AND LAST JUNE THE MAN KNOWN AS THE MR FIXIT OF THE STEEL INDUSTRY BECAME CHIEF EXECUTIVE OF ARMCO STEEL THE FLOUNDERING JOINT VENTURE OF ARMCO INC AND JAPAN'S KAWASAKI STEEL CORP HE DIDN'T RETURN CALLS YESTERDAY IN OTHER INSTANCES HOWEVER A BOARD GIVES THE VICE CHAIRMANSHIP SUBSTANTIAL POWERS BY TURNING TO AN OUTSIDE DIRECTOR WHO CAN HELP A NEW CHIEF EXECUTIVE LEARN THE ROPES THAT'S WHAT HAPPENED LAST MONTH AT SPEAR FINANCIAL THE GLENDALE CALIF CONCERN CHOSE JAMES K MITCHELL 53 AS CHAIRMAN AND CEO FOLLOWING THE RESIGNATION OF CHARLES M SPEAR MR MITCHELL HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF JAMES MITCHELL & CO SPEAR'S PRIMARY OPERATING UNIT WHICH SELLS ANNUITIES AND INVESTMENT PRODUCTS THROUGH FINANCIAL INSTITUTIONS MR SCHAEFER SAYS HIS NEW JOB IS ONLY A PARTTIME POST WHICH HE HANDLES FROM AN OFFICE IN HIS NEW YORK APARTMENT I AM OPERATING FROM AN OVERSEER'S STANDPOINT HE CONTINUES I AM THE EYES AND EARS OF THE BOARD AND WILL MAKE SURE THAT THE NEW CEO DOESN'T ACQUIRE A BUSINESS OR TAKE OTHER ACTIONS WITHOUT BOARD APPROVAL WHILE MR MITCHELL SAYS HE WELCOMES MR SCHAEFER'S ASSISTANCE WITH THE PLANNED DIVESTITURE AND INVESTOR RELATIONS HE ADDS THAT HE DOESN'T NEED CONSTANT OVERSIGHT FROM THE NEW VICE CHAIRMAN JAMES MITCHELL & CO REPRESENTS 85 OF SPEAR'S REVENUE MR MITCHELL NOTES AND I HAVE BEEN RUNNING IT AS CEO SINCE 1984 SO NOT MUCH IS CHANGED BY TAKING THE REINS OF SPEAR COMPANIES ALSO USE THE VICE CHAIRMANSHIP AS A TRANSITION DEVICE BY MAKING IT PART OF A LEADERSHIP CONTEST THEY GIVE SEVERAL PEOPLE THE TITLE AND THE VICE CHAIRMEN COMPETE AGAINST ONE ANOTHER FOR THE CEO SLOT IN FACT THE ONLY TIME THERE ARE VICE CHAIRMEN AT NYNEX CORP IS WHEN THE COMPANY IS LOOKING FOR A SUCCESSOR ONE NYNEX EXECUTIVE VICE PRESIDENT SAYS BUT MANY SAY THE ARRANGEMENT HAS WORKED WELL FOR NYNEX DELBERT BUD STALEY WHO RETIRED AS NYNEX CHAIRMAN AND CHIEF EXECUTIVE IN 1989 SAYS THAT TWO YEARS EARLIER HE CREATED TWO VICE CHAIRMAN SLOTS WITH RELATIVELY EQUAL POSITIONS IN ORDER TO TRY OUT CEO CANDIDATES AND LET THEM HAVE A HORSE RACE THE ARRANGEMENT GAVE HIM FIRSTHAND KNOWLEDGE OF THEIR PERFORMANCE HE CONTINUES WILLIAM C BURNS VICE CHAIRMAN OF NYNEX'S NONTELEPHONE BUSINESSES LOST THE SUCCESSION BATTLE TO WILLIAM C FERGUSON VICE CHAIRMAN OF TELEPHONE OPERATIONS IN FEBRUARY 1989 A FEW MONTHS LATER MR BURNS RESIGNED LEAVING THE VICE CHAIRMAN'S SEAT VACANT BUT TWO YEARS AGO AS MR FERGUSON APPROACHED RETIREMENT AGE HE'S NOW 61 NYNEX RESURRECTED THE IDEA BY APPOINTING TWO NEW VICE CHAIRMEN FREDERIC V SALERNO AND IVAN SEIDENBERG THE RACE IS ON AGAIN JULIE AMPARANO LOPEZ CONTRIBUTED TO THIS ARTICLE 9301270068 930127 BUSINESS BRIEF COCACOLA CO SOFTDRINK FIRM TO RETURN TO SAUDI ARABIAN MARKET COCACOLA CO SAID IT WILL BEGIN PRODUCING AND MARKETING ITS PRODUCTS IN SAUDI ARABIA AFTER AN ABSENCE OF SOME 25 YEARS BECAUSE OF ITS OPERATIONS IN ISRAEL COCACOLA WAS PLACED ON A BOYCOTT LIST FORMED BY ARAB COUNTRIES IN 1967 IT WASN'T UNTIL 1989 THAT RESTRICTIONS BEGAN TO EASE AND COCACOLA WAS IMPORTED BY SAUDI ARABIA IN LIMITED QUANTITIES THE ATLANTA SOFTDRINK COMPANY SAID COCACOLA BOTTLING CO OF SAUDI ARABIA WILL MAKE COCACOLA DIET COKE FANTA AND SPRITE IN A NEW PLANT IN DAMMAM SAUDI ARABIA COCACOLA WILL ALSO BE AVAILABLE IN NONREFILLABLE GLASS BOTTLES PEPSICO INC BASED IN PURCHASE NY ALREADY HAS A LARGE PRESENCE IN SAUDI ARABIA WITH ABOUT 80 TO 90 OF THE SOFTDRINK MARKET ACCORDING TO A COMPANY SPOKESMAN WHILE COKE DECLINED TO SPECIFY ITS OWN MARKET SHARE A SPOKESWOMAN DIDN'T DISPUTE AN ESTIMATE OF 1 TO 2 9301270067 930127 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 LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9301270066 930127 BUSINESS BRIEF INTERNATIONAL FAMILY ENTERTAINMENT FIRM GETS CONTROL OF TVS OF BRITAIN A CABLE CONCERN INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT FINALLY ACQUIRED CONTROL OF TVS ENTERTAINMENT PLC AFTER SEVERAL EXTENSIONS OF ITS TENDER OFFER TO SHAREHOLDERS INTERNATIONAL FAMILY VIRGINIA BEACH VA OWNER AND OPERATOR OF THE FAMILY CHANNEL CABLE TELEVISION NETWORK LAST SEPTEMBER ANNOUNCED AN AGREEMENT WITH TVS TO BUY THE BRITISH CABLE COMPANY IN A DEAL VALUED AT 685 MILLION THE ACQUISITION WAS SUBJECT TO THE TENDERING OF AT LEAST 90 OF TVS SHARES BY HOLDERS AMONG OTHER CONDITIONS TVS PRODUCES AND DISTRIBUTES TV SERIES AND OTHER PROGRAMS AND OWNS LOS ANGELESBASED MTM ENTERTAINMENT INC MTM AN INDEPENDENT PROGRAM PRODUCER HAS A LIBRARY THAT INCLUDES SUCH SERIES AS HILL STREET BLUES THE MARY TYLER MOORE SHOW AND THE BOB NEWHART SHOW AS WELL AS MOVIES MADE FOR TV AND OTHER SPECIAL PROGRAMS 9301270065 930127 BUSINESS BRIEF POTLATCH CORP FOURTHPERIOD NET FELL 35 AT FOREST PRODUCTS CONCERN POTLATCH CORP SAID WEAK PULP AND PAPER MARKETS CHOPPED FOURTHQUARTER NET INCOME BY 35 AND IT PROJECTED A BIG ACCOUNTING CHARGE IN THE CURRENT PERIOD THE FOREST PRODUCTS COMPANY SAID NET DECREASED TO 105 MILLION OR 36 CENTS A SHARE FROM 162 MILLION OR 55 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 65 TO 3236 MILLION FROM 3039 MILLION WHILE MARKETS FOR MANY WOOD PRODUCTS IMPROVED OVER THE PAST YEAR PAPER AND PULP PRODUCTS DIDN'T SHARE IN THOSE GAINS HURTING THE COMPANY'S RESULTS FURTHER POTLATCH WAS FORCED TO CLOSE A NEW PULP MILL FOR MOST OF THE QUARTER BECAUSE OF ELECTRICAL PROBLEMS NET FOR THE YEAR CLIMBED 41 TO 789 MILLION OR 271 A SHARE FROM 558 MILLION OR 192 A SHARE A YEAR AGO A DIRECT RESULT OF A 262 MILLION GAIN FROM THE SALE OF THE COMPANY'S PACKAGING OPERATIONS THE COMPANY SAID IT PLANS TO TAKE A 317 MILLION CHARGE IN THE CURRENT QUARTER TO REFLECT A CHANGE IN ACCOUNTING FOR POSTRETIREMENT BENEFITS 9301270064 930127 BUSINESS BRIEF CALIFORNIA FEDERAL BANK LOSS POSTED FOR 4TH PERIOD AFTER DEBTCUTTING CHARGE CALIFORNIA FEDERAL BANK FORMERLY CALFED INC POSTED A FOURTHQUARTER NET LOSS OF 45 MILLION OR 108 A SHARE NARROWED FROM A LOSS OF 912 MILLION OR 356 A SHARE A YEAR EARLIER THE LOS ANGELESBASED THRIFT CITED A 514 MILLION DEBTREDUCTION CHARGE IN THE LATEST LOSS THE CONCERN HAD LOSSES TOTALING NEARLY 500 MILLION OVER THE PAST THREE YEARS AS IT ACCUMULATED 122 BILLION OF REAL ESTATE ASSETS THAT ARE NO LONGER PAYING INTEREST ALTHOUGH A RECENTLY COMPLETED DEBTFOREQUITY SWAP SHOULD HELP EASE ITS PLIGHT THE THRIFT'S PILE OF NONPERFORMERS REPRESENTS 71 OF ITS TOTAL ASSETS THE QUARTERLY RESULTS REFLECTED THE ISSUANCE OF 992 MILLION COMMON SHARES IN THE SWAP COMPLETED IN DECEMBER THAT GAVE BONDHOLDERS A 79 STAKE IN THE THRIFT THE THRIFT ALSO PLANS A 1FOR5 REVERSE STOCK SPLIT EFFECTIVE FEB 28 FOR THE YEAR CALIFORNIA FEDERAL LOST 973 MILLION OR 328 A SHARE COMPARED WITH 1696 MILLION OR 662 A SHARE IN 1991 9301270063 930127 BUSINESS BRIEF LA QUINTA MOTOR INNS LP COMPANY SAYS GROUP FAILED TO WIN MAJORITY OF CONSENTS LA QUINTA MOTOR INNS LP SAID AN INDEPENDENT ELECTION INSPECTOR DECLARED THAT DISSIDENT HOLDER RONIN PARTNERS LP FAILED TO OBTAIN A MAJORITY OF UNITHOLDER CONSENTS IN ITS ATTEMPT TO DISSOLVE AND RESTRUCTURE LA QUINTA THE SAN ANTONIO TEXAS HOTEL AND RESTAURANT OWNER ALSO DENIED RONIN'S ALLEGATIONS THAT LA QUINTA HAD FAILED TO DELIVER ALL THE RELEVANT CONSENTS TO THE INSPECTOR THE PARTNERSHIP BELIEVES THAT ALL SUCH CONSENTS WERE REVIEWED BY THE INDEPENDENT INSPECTOR BEFORE COMPLETION OF THE FINAL REPORT LA QUINTA SAID RONIN HAS ALLEGED THAT THE GENERAL PARTNER HAS BEEN CHARGING EXCESSIVE MANAGEMENT FEES AND DRAINING CASH FROM THE PARTNERSHIP AT UNITHOLDERS' EXPENSE LA QUINTA'S GENERAL PARTNER LA QUINTA MOTOR INNS INC'S LA QUINTA REALTY CORP REITERATED ITS ALLEGATION THAT RONIN VIOLATED FEDERAL SECURITIES LAWS AND THE PARTNERSHIP AGREEMENT IN OBTAINING THE CONSENTS RONIN HAS DENIED THE CHARGE A HEARING TO REVIEW THE VOTE BY LIMITED PARTNERS HAS BEEN SCHEDULED FOR FEB 8TH IN DELAWARE FEDERAL COURT 9301270062 930127 BUSINESS BRIEF SIFCO INDUSTRIES INC COMPANY TO OMIT DIVIDEND FOR THE FISCAL FIRST QUARTER SIFCO INDUSTRIES INC SAID IT WILL OMIT ITS REGULAR QUARTERLY DIVIDEND FOR THE FIRST QUARTER ENDED DEC 31 SAYING THE MAIN REASON FOR THIS ACTION IS THE UNCERTAINTY CONFRONTING THE COMPANY'S AEROSPACE AND DEFENSE MARKETS SIFCO'S LAST DIVIDEND DECLARED WAS THREE CENTS A SHARE PAID NOV 24 1992 THIS DIVIDEND WAS A 50 REDUCTION FROM THE COMPANY'S PRIOR REGULAR QUARTERLY DIVIDEND RATE OF SIX CENTS A SHARE SIFCO CITED ITS CAPITAL IMPROVEMENT PROGRAMS WHICH NECESSITATE A CONSERVATION OF CASH RESOURCES AS A CONTRIBUTING FACTOR OF THE DIVIDEND SUSPENSION THE CLEVELAND COMPANY WHICH MAKES AND MARKETS JETENGINE AND AIRFRAME PARTS FOR THE AEROSPACE INDUSTRY SAID IT PLANS TO REINSTATE DIVIDEND PAYMENTS AS QUICKLY AS BUSINESS CONDITIONS WILL ALLOW FOR THE YEAR ENDED SEPT 30 SIFCO HAD A NET LOSS OF 440000 OR NINE CENTS A SHARE ON SALES OF 576 MILLION 9301270061 930127 CREDIT MARKETS SEVERAL NEW CORPORATE ISSUES SEE WEAK DEMAND CAUSING PRICES OF TREASURY SECURITIES TO FALL BY THOMAS T VOGEL JR AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE CORPORATE BOND FEAST THAT HAS PERMITTED COMPANIES TO SELL MORE THAN 30 BILLION IN NEW BONDS SO FAR THIS YEAR MAY HAVE REACHED ITS FINAL COURSE YESTERDAY AS WELLSUPPLIED INVESTORS BALKED AT DIGESTING A NUMBER OF NEW DEALS THE WEAKER DEMAND FOR NEW CORPORATE DEBT AS WELL AS A WAVE OF MUNICIPAL BONDS HELPED TO PUSH DOWN PRICES IN THE TREASURY MARKET MORE THAN 3/4 POINT IN SOME CASES UNDERWRITERS FACED WITH PILES OF UNSOLD BONDS OFTEN SEEK TO HEDGE AGAINST POTENTIAL PRICE DECLINES BY SHORTSELLING TREASURY SECURITIES WITH COMPARABLE MATURITIES IN SHORTSELLING AN UNDERWRITER SELLS A BORROWED SECURITY IN THE HOPE OF BUYING IT BACK AT A LOWER PRICE AND POCKETING THE DIFFERENCE OF YESTERDAY'S 45 BILLION IN NEW CORPORATE AND MUNICIPAL BOND OFFERINGS A 1 BILLION OFFERING BY TIME WARNER INC AND A 400 MILLION OFFERING BY PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT STOOD OUT AS EXAMPLES OF THE RELUCTANCE OF INVESTORS TO ACCEPT LOWER YIELDS AND HIGHER PRICES FOR NEW BONDS BOTH WERE RECEIVED SO COLDLY BY INVESTORS ANALYSTS SAID THAT UNDERWRITERS WERE PROBABLY LEFT WITH AS MUCH AS 1 BILLION OF UNSOLD BONDS AT DAY'S END THE RESULT WAS A DROP OF MORE THAN 3/4 POINT IN THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND TO 104 12/32 FOR A YIELD OF 725 UP FROM 719 MONDAY PRICES OF FIVEYEAR SEVENYEAR AND 10YEAR NOTES ALL DROPPED ABOUT 3/8 POINT WITH THE 10YEAR NOTE FINISHING AT 99 6/32 FOR A YIELD OF 647 UP FROM 642 BUT TREASURYS STILL ENDED THE SESSION AS MUCH AS 1/2 POINT HIGHER THAN THEY WERE AT THE START OF THE WEEK ALSO CONTRIBUTING TO DECLINES IN THE TREASURY MARKET WERE A WEAK TREASURY AUCTION OF 1527 BILLION OF TWOYEAR NOTES AND A REPORT SHOWING STRENGTH IN RETAIL SALES THIS TWOYEAR NOTE AUCTION WAS NOT WHAT EVERYBODY EXPECTED SAID THOMAS R LYNETT A MANAGING DIRECTOR OF GOVERNMENT TRADING AT MERRILL LYNCH & CO BECAUSE OF STRONG BUYING OF TREASURY SECURITIES MONDAY WHEN THE 30YEAR BOND'S PRICE RALLIED TO RESULT IN THE BOND'S LOWEST YIELD IN MORE THAN SIX YEARS INVESTORS AND UNDERWRITERS WERE UNPREPARED TO DIGEST THE FLOOD OF TWOYEAR TREASURY NOTES WHEN THE AUCTION CAME EVERYONE WHO NEEDED NOTES HAD ALREADY BOUGHT THEM SAID MR LYNETT AFTER THE DUTCH AUCTION THE TREASURY AWARDED THE TWOYEAR NOTES AT A YIELD OF 428 WELL ABOVE MARKET EXPECTATIONS OF 424 OR 425 BY THE END OF TRADING THE TWOYEAR NOTE YIELDED 434 REFLECTING THE TROUBLE THE MARKET HAD WITH THE AUCTION ANALYSTS ALSO CITED THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS TENDERED TO THE NUMBER ACCEPTED WHICH CAME IN EXTREMELY WEAK AT 210TO1 AT THE DECEMBER AUCTION THE RATIO WAS 252TO1 AND THE AVERAGE FOR THE FOUR PRIOR DUTCH AUCTIONS WAS 298TO1 THE MARKET MUST STILL DEAL WITH ADDITIONAL SUPPLY TODAY WHEN THE TREASURY WILL SELL 115 BILLION IN FIVEYEAR NOTES THE LAST FIVEYEAR NOTE AUCTION TOTALED 1125 BILLION IN WHENISSUED TRADING LATE YESTERDAY THE FIVEYEAR NOTE YIELDED 576 ALSO HURTING TREASURY PRICES WAS THE WEEKLY JOHNSON REDBOOK SERVICE REPORT WHICH SHOWED RETAIL SALES HAVE CONTINUED AT A STRONGERTHANANTICIPATED PACE THROUGH LATE JANUARY THE REDBOOK REPORT PRODUCED BY AN AFFILIATE OF LYNCH JONES & RYAN INC SAID CHAIN AND DEPARTMENT STORE SALES ROSE AT A SEASONALLY ADJUSTED 48 PACE DURING THE FIRST THREE WEEKS OF JANUARY FROM THE DECEMBER LEVEL DESPITE THE SHARP PRICE DECLINES IN TREASURYS HOWEVER TRADERS SAID THE MARKET STILL HAS A POSITIVE TONE THE FUNDAMENTALLY BULLISH ATTITUDE IS STILL THERE SAID STEPHEN MAHER AN EXECUTIVE VICE PRESIDENT AT NIKKO SECURITIES CO IT'S A LITTLE DULLED BUT I THINK THERE'S STILL A BULLISH TONE THE MARKET IS TRYING TO BACK OFF A LITTLE AND DIGEST SAID JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP PEOPLE WERE SO ENTHRALLED BY THE PRUDENT FISCAL RHETORIC COMING OUT OF WASHINGTON THAT THEY JUMPED ON THE BANDWAGON ON MONDAY AND THAT BANDWAGON LOST SOME MOMENTUM YESTERDAY BUT HEDGING BY CORPORATE UNDERWRITERS SEEMED TO BE THE HEAVIEST WEIGHT ON TREASURY PRICES YESTERDAY THERE WERE A NUMBER OF LONGTERM CORPORATE ISSUES THAT DID NOT DO WELL SAID JAMES MULLIN HEAD OF CAPITAL MARKETS AT KIDDER PEABODY & CO AND THAT PRESSURE ALONE COULD HAVE KNOCKED TREASURY BOND PRICES DOWN 1/2 POINT THERE WERE A COUPLE OF DEALS THAT NEEDED TO BE HEDGED IN THE TREASURY CASH AND FUTURES MARKETS SAID MR LYNETT OF MERRILL LYNCH ONE OF THE NEW CORPORATE DEALS A 400 MILLION COMPETITIVE OFFERING OF 40YEAR BONDS BY THE SAN FRANCISCO TELEPHONE COMPANY PACIFIC BELL WAS MENTIONED BY ANALYSTS AS ONE OF THE DAY'S MOST UNPALATABLE DEALS LEHMAN BROTHERS INC BEAT OUT OTHER POTENTIAL UNDERWRITERS AND OFFERED THE BONDS TO INVESTORS AT A PRICE OF 96913 TO YIELD 775 A 055 PERCENTAGE POINT SPREAD OVER THE 30YEAR TREASURY BOND PRICE TALK BEFORE THE OFFERING CALLED FOR A SPREAD OF 065 TO 070 PERCENTAGE POINT ACCORDING TO STEPHEN CLARK SENIOR CORPORATE BOND ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICE BIDS FOR THE DEAL WERE VERY AGGRESSIVE SAID ANALYSTS BUT LEHMAN BROTHERS WON OUT BY OFFERING SUCH A NARROW INTEREST RATE SPREAD THAT MR CLARK THEORIZED THAT THE FIRM WAS TRYING TO MAKE A POINT PERHAPS THE FIRM WANTED TO PROVE ITS METTLE SAID MR CLARK IN THE WAKE OF THE RECENT DEPARTURE OF THE HEAD OF ITS DOMESTIC DEBT SYNDICATE JOHN GRIFF AND TURMOIL IN THE EXECUTIVE OFFICES OF ITS PARENT COMPANY AMERICAN EXPRESS CO OFFICIALS AT LEHMAN WOULD NOT COMMENT ON THE OFFERING AND OFFICIALS WITH PACIFIC BELL DID NOT RETURN CALLS SEEKING COMMENT THE BONDS WERE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP ACCORDING TO MR CLARK THE PRICE OF THE OFFERING WAS NOT NEARLY ENOUGH TO COMPENSATE FOR THE RISK OF INVESTING IN A 40YEAR BOND THE RISK IS HUGE ON A VERY LARGE ISSUE LIKE THAT SAID MR CLARK IT'S HARD TO PLACE MR CLARK SAID HE WOULD BE SURPRISED IF LEHMAN HAD MANAGED TO SELL MORE THAN A QUARTER OF THE 400 MILLION ISSUE THE BONDS CAN BE CALLED IN 10 YEARS A FEATURE INVESTORS TODAY DON'T LIKE SEVERAL INVESTORS SAID IF YOU WANT TO GO OUT TO 30 YEARS YOU HAVE TO GO INTO SOMETHING WHERE THEY CAN'T TAKE ANY PERFORMANCE AWAY FROM YOU SAID ELLEN SAFIR MANAGING DIRECTOR OF INVESTMENTS AT HOWARD HUGHES MEDICAL INSTITUTE IN BETHESDA MD INVESTORS WHO ARE WILLING TO GO OUT THIRTY YEARS WANT A CLEANER' DEAL IN OTHER WORDS NO CALL ANOTHER CORPORATE DEAL THAT DID NOT FARE WELL YESTERDAY WAS A 1 BILLION OFFERING OF 30YEAR BONDS BY TIME WARNER SAID ANALYSTS THE ISSUE WAS TIME WARNER'S THIRD OFFERING THIS MONTH WITH A 1 BILLION TWOPART ISSUE OF FIVEYEAR AND SEVENYEAR NOTES PRICED LAST WEEK AND A 1 BILLION ISSUE OF 20YEAR BONDS PRICED TWO WEEKS AGO YESTERDAY'S DEAL FOR THE SPLITRATED CREDIT WAS BARELY SOLD BY THE END OF THE DAY ACCORDING TO ONE UNDERWRITER OFFICIALS AT LEAD MANAGER MERRILL LYNCH & CO REFUSED TO COMMENT THEY JUST SWAMPED THE MARKET THE SYNDICATE OFFICIAL SAID ACCORDING TO MR CLARK TIME WARNER IS RACING TO BEAT OTHER COMPANIES WITH DELEVERAGING PLANS TO THE MARKET EITHER MERRILL LYNCH OR TIME WARNER SAW THAT THERE WAS A LOT MORE TO COME IN THE WAY OF COMPANIES ISSUING BONDS TO DELEVERAGE THEMSELVES SAID MR CLARK THE TIME WARNER 30YEAR BONDS WERE PRICED AT A SPREAD OF 193 PERCENTAGE POINTS OVER THE 30YEAR TREASURY BOND FOR A YIELD OF 915 THE ISSUE IS RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY STANDARD & POOR'S GLENN MURPHY CHIEF INVESTMENT OFFICER AT TRAVELERS ASSET MANAGEMENT SAID THAT WHILE THE MARKET STALLED YESTERDAY UNDER THE WEIGHT OF NEW SUPPLY AND AGGRESSIVE PRICING HE DOESN'T EXPECT THE EFFECT TO BE LONGLASTING A YEAR AGO SIMILAR FACTORS CHOKED THE MARKET AT THE SAME TIME THAT THERE WERE MORE AND MORE SIGNS THE ECONOMY WAS IMPROVING WE DON'T EXPECT THAT AGAIN SO THE MARKET CAN WADE ITS WAY THROUGH THE SUPPLY SAID MR MURPHY HERE ARE THE RESULTS OF THE TREASURY'S AUCTION OF TWOYEAR NOTES ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED FEB 1 AND MATURE JAN 31 1995 MUNICIPAL ISSUERS HURRIED TO THE MARKET TO TAKE ADVANTAGE OF THE RECENT DROP IN US INTEREST RATES SELLING MORE THAN 2 BILLION OF SECURITIES IN TRADING MEANWHILE PRICES ENDED MIXED WITH ISSUES FINISHING 1/4 POINT LOWER TO 1/4 HIGHER THE SAN FRANCISCO AIRPORT COMMISSION'S 6 AIRPORT REVENUE BONDS OF 2020 ENDED 1/4 POINT LOWER AT 98 TO YIELD 613 YESTERDAY'S NEW MUNICIPAL ISSUES GOT A MIXED RECEPTION ALTHOUGH SOME UNDERWRITERS WERE ABLE TO REPRICE THEIR OFFERINGS AND LOWER YIELDS BY AS MUCH AS 015 PERCENTAGE POINT DUE TO STRONG DEMAND OTHERS RAISED YIELDS TO ATTRACT BUYERS ONE ISSUE BELIEVED TO HAVE FARED WELL IS THE GRAND RIVER DAM AUTHORITY OF OKLAHOMA'S 7607 MILLION ISSUE OF SERIES 1992 REVENUE REFUNDING BONDS A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP GAVE THE OFFERING YIELDS THAT RANGE FROM 275 IN 1993 TO 610 IN 2009 AND 2010 PRICES OF MORTGAGE SECURITIES ENDED LOWER ON CONCERNS ABOUT PREPAYMENTS IN SECONDARY TRADING OF 75 ISSUES FOR FEBRUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 9/32 LOWER AT 101 10/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDED 10/32 LOWER AT 101 6/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 10/32 LOWER AT 100 31/32 ALTHOUGH BOND YIELDS ROSE FROM THE SIXYEAR LOWS REACHED MONDAY THEY REMAIN SUFFICIENTLY LOW TO WORRY THE MORTGAGE SECURITIES MARKET THAT REFINANCINGS AND HOME SALES WILL CONTRIBUTE TO FAST PREPAYMENTS IN COMING MONTHS AMONG THE ISSUES HARD HIT YESTERDAY WERE HIGHCOUPON SECURITIES 85 ISSUES AND HIGHER WHICH DROPPED 9/32 TO 19/32 IN PRICE PREPAYMENTS ON THESE SECURITIES WOULD MEAN LOSSES TO INVESTORS WHO PAID MUCH MORE THAN THE PAR PRICE THEY WOULD RECEIVE THE 85 TO 105 SECURITIES FROM ALL THREE AGENCIES NOW TRADE AT PREMIUMS RANGING BETWEEN 3 1/2 AND 11 POINTS ABOVE PAR THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9301270060 930127 BUSINESS BRIEF OREGON STEEL MILLS INC FIRM PLANS CHARGE FOR PERIOD OF 5 MILLION TO SETTLE SUITS OREGON STEEL MILLS INC SAID IT SETTLED LAWSUITS BY FORMER EMPLOYEES PENDING SINCE 1988 AND WILL TAKE A 5 MILLION CHARGE FOR THE FOURTH QUARTER OF 1992 THE LAWSUITS WERE BROUGHT BY FORMER EMPLOYEES WHO SOLD 16 MILLION SHARES BACK TO OREGON STEEL UNDER ITS EMPLOYEE STOCK OWNERSHIP PLAN IN THE TWO YEARS BEFORE THE COMPANY BEGAN SELLING SHARES TO THE PUBLIC IN 1988 AND THE MARKET PRICE WAS HIGHER THAN THE AMOUNT THEY HAD RECEIVED THE COMPANY ESTIMATES DAMAGES COULD HAVE BEEN MORE THAN 40 MILLION IF IT HAD LOST THE CASE IN COURT THE SETTLEMENT REMOVES A SIGNIFICANT FINANCIAL UNKNOWN THAT HAS FOR SEVERAL YEARS CONSUMED AN INORDINATE AMOUNT OF MANAGEMENT TIME AND COMPANY RESOURCES OREGON STEEL CHAIRMAN THOMAS BOKLUND SAID PART OF THE SETTLEMENT WILL BE PAID BY 13 MILLION IN PRIMARY INSURANCE COVERAGE OREGON STEEL IS PURSUING A COVERAGE CLAIM AGAINST THE EXCESS LIABILITY INSURER FOR THE REMAINDER 9301270059 930127 BUSINESS BRIEF RAYCHEM CORP NET FOR FISCAL 2ND QUARTER REVERSES YEAREARLIER LOSS RAYCHEM CORP CITING MODERATE SALES INCREASES IN ITS TELECOMMUNICATIONS AND INDUSTRIAL PRODUCTS POSTED NET INCOME OF 32 MILLION OR EIGHT CENTS A SHARE FOR THE FISCAL SECONDQUARTER REVERSING A LOSS THE YEAREARLIER LOSS OF 119 MILLION OR 31 CENTS A SHARE WAS CAUSED LARGELY BY AN 82 MILLION SETTLEMENT FOR A SHAREHOLDER SUIT REVENUE INCREASED 6 TO 3495 MILLION FROM 3285 MILLION RAYCHEM IS AN AEROSPACE AND ELECTRONICS COMPANY BASED IN MENLO PARK CALIF IT SAID EARNINGS WERE DEPRESSED BY A PRETAX 22 MILLION LOSS FOR ITS FIBEROPTICS UNIT RAYNET NET IN THE FIRST HALF ENDED DEC 31 WAS 7 MILLION OR 17 CENTS A SHARE COMPARED WITH A LOSS OF 45 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 10 TO 698 MILLION FROM 6327 MILLION 9301270058 930127 CHANGES AT IBM SIGNING OFF AKERS QUITS AT IBM UNDER HEAVY PRESSURE DIVIDEND IS SLASHED OUTSIDERS WILL LEAD SEARCH FOR NEW CHIEF EXECUTIVE TO BE A CHANGEMASTER' BUT WHO'D WANT THIS JOB BY MICHAEL W MILLER AND LAURENCE HOOPER STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE END INTERNATIONAL BUSINESS MACHINES CORP HAD UNRAVELED SO BADLY THAT THERE WASN'T ANY NEED FOR A FRACTIOUS BOARDROOM COUP INSTEAD YIELDING TO A FATE HIS COLLEAGUES AND DIRECTORS HAD COME TO REGARD AS INEVITABLE JOHN F AKERS IBM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER STEPPED INTO A BOARDROOM IN IBM'S MANHATTAN SKYSCRAPER MONDAY AND LAID OUT THE DETAILS OF A HIGHLEVEL BLOODLETTING AT THE WOUNDED COMPUTER GIANT FIRST HE AGREED TO STEP DOWN AS IBM'S CEO AS SOON AS A SUCCESSOR IS CHOSEN A HUMILIATING TURNABOUT FROM HIS REPEATED INSISTENCE OVER RECENT MONTHS THAT HE WOULD LEAD IBM'S STRUGGLE FOR YEARS TO COME COMPLETING THE STARTLING ABOUTFACE FOR THE 58YEAROLD MR AKERS HIS TWO LIEUTENANTS WHO PRESIDED WITH HIM OVER IBM'S HISTORIC PLUNGE TO A RECORD 497 BILLION LOSS IN 1992 WOULD ALSO LOSE THEIR JOBS PRESIDENT JACK KUEHLER 60 WILL MOVE ASIDE TO BECOME VICE CHAIRMAN WHILE CHIEF FINANCIAL OFFICER FRANK METZ 59 WOULD RETIRE EARLY MOREOVER FOR THE FIRST TIME EVER IBM SLASHED ITS QUARTERLY DIVIDEND ABOUT 55 TO 54 CENTS A SHARE IT HAD BEEN AT 121 SINCE MAY 1989 THE NEW DIVIDEND INDICATES AN ANNUAL RATE OF 216 COMPARED WITH THE PREVIOUS RATE OF 484 IBM WOULDN'T RULE OUT FURTHER STEPS TO EITHER CUT OR RAISE THE PAYOUT THE COMPANY ANNOUNCEMENTS CAME BEFORE THE STOCK MARKET OPENED IN NEW YORK YESTERDAY IBM'S STOCK PRICE SHOT UP MORE THAN 3 AT THE OPENING BUT LATER RETREATED AS INVESTORS CONCLUDED THAT THE MANAGEMENT MOVES WOULDN'T BE A QUICK FIX FOR IBM THE STOCK CLOSED ON THE NEW YORK STOCK EXCHANGE AT 49 UP 125 CENTS IN ANNOUNCING THE SWEEP AT THE TOP IBM SIGNALED THAT IT TOO HAD SUCCUMBED TO THE REVOLUTION SWEEPING THROUGH CORPORATE AMERICA YIELDING POWER TO THE HANDS OF OUTSIDE DIRECTORS A COMMITTEE OF SEVEN OF THE 14 OUTSIDERS ON THE BOARD WILL LEAD THE SEARCH FOR MR AKERS'S SUCCESSOR AND THE PANEL'S CHAIRMAN JAMES BURKE SAYS HE IS LOOKING FOR A RADICALLY FRESH START AT IBM CHANGEMASTERS ARE PEOPLE WHO SEE THINGS DIFFERENTLY BECAUSE THEY'RE NOT BURDENED WITH THE PAST SAID MR BURKE WHO IS RENOWNED FOR LEADING JOHNSON & JOHNSON THROUGH ITS CRISIS OVER POISONED TYLENOL HE SAID HIS COMMITTEE WILL CONSIDER EXECUTIVES OUTSIDE IBM AND EVEN OUTSIDE THE COMPUTER INDUSTRY TO REPLACE MR AKERS MR BURKE SAID HE EXPECTS TO FIND A NEW CEO IN THE NEXT THREE MONTHS BUT THE SEARCH WON'T BE EASY IBM NEEDS A LEADER COLDBLOODED ENOUGH TO MAKE PAINFUL CUTS AT A COMPANY STILL BADLY BLOATED EVEN AFTER SHEDDING 100000 WORKERS UNDER MR AKERS AND YET VISIONARY ENOUGH TO SPOT IBM'S OPPORTUNITIES IN A DOZEN MARKETS THAT ARE CHANGING AT BLINDING SPEED THERE'S GOT TO BE A WAY TO CONFIGURE THIS THING SO IT'S VIBRANT AND PROFITABLE SAID BILL GATES CHAIRMAN OF SOFTWARE COLOSSUS MICROSOFT CORP AS MUCH AS ANY COMPANY THE HEIR TO IBM'S BYGONE TITLE AS THE COMPUTER INDUSTRY'S PREEMINENT POWER AMONG THE STEPS HE SAID IBM NEEDS TO TAKE BREAK UP ITS MONOLITHIC SALES FORCE TO SERVE INDIVIDUAL MARKETS AND FIND A CEO WHO UNLIKE MR AKERS IS STEEPED IN TECHNICAL KNOWLEDGE LIKE MOST PEOPLE OUTSIDE AND INSIDE IBM MR GATES SAID THE NEWS OF THE MANAGEMENT SHUFFLE CAME AS A SURPRISE TO HIM BUT MR BURKE SAID IBM'S BOARD WAS PREPARED FOR MR AKERS'S MONDAY ANNOUNCEMENT MR BURKE WOULDN'T DISCLOSE JUST WHEN DIRECTORS KNEW MR AKERS WAS LEAVING SAYING ONLY THESE THINGS ARE A PROCESS HE ADDED THERE WERE PRESSURES FROM EVERYWHERE ON HIM TO THINK ABOUT WHAT HE SHOULD DO IN TERMS OF HIS LIFE AND THE INSTITUTION I THINK HE PUT THE INSTITUTION FIRST EVEN LOYAL IBM STAFFERS SAID THE ONCEUNTHINKABLE DEPARTURE OF MR AKERS HAD BECOME A FOREGONE CONCLUSION OVER THE PAST COUPLE OF MONTHS THE PRESSURE HAD BEEN GETTING STEADILY LOUDER SAID STEVE SCHWARTZ A RECENTLY RETIRED IBM SENIOR VICE PRESIDENT WITH ALL THE EXTERNAL FORCES WHETHER THEY WERE RIGHT OR WRONG HIS LEAVING HAD BECOME INEVITABLE ONLY LAST WEEK IBM REPORTED ITS FIRSTEVER OPERATING LOSS IN THE FOURTH QUARTER AND THE NET LOSS OF 497 BILLION ON DECLINING REVENUE FOR ALL OF 1992 ITS SECOND ANNUAL DEFICIT IN TWO YEARS BIG BLUE'S STOCK PRICE HAS BEEN SLICED IN HALF OVER THE PAST SIX MONTHS AS THE COMPANY FACES PLUMMETING DEMAND FOR ITS BIG MAINFRAME COMPUTERS WHILE IT FAILS TO MOVE QUICKLY ENOUGH INTO GROWTH AREAS STUNG BY THE LOSS OF MORE THAN 28 BILLION IN MARKET VALUE IBM'S IMPATIENT INVESTORS HAVE BEEN CALLING FOR DRASTIC ACTION INCLUDING IN SOME CASES DEMANDING THAT IBM'S BOARD FORCE MR AKERS TO STEP ASIDE IBM SAID MESSRS AKERS KUEHLER AND METZ WOULDN'T HAVE ANY COMMENT BUT MR AKERS SAID IN A STATEMENT THAT IT WAS HIS OWN DECISION TO STEP DOWN AND MR BURKE BACKED HIM UP I KNOW EVERYBODY THINKS THIS IS A POLITE WAY OF SAYING THE BOARD GOT RID OF AKERS BUT THAT REALLY ISN'T TRUE MR BURKE SAID MR AKERS HAD REPEATEDLY INSISTED IN RECENT MONTHS THAT HIS JOB WAS SAFE AND THAT HE MIGHT EVEN STAY BEYOND IBM'S TRADITIONAL RETIREMENT AGE OF 60 BUT OVER THE PAST WINTER THE PRESSURE ON HIM BECAME EXCRUCIATING IN DECEMBER HE CAME TO NEW YORK TO MAKE A LANDMARK ANNOUNCEMENT THAT SHATTERED ONE SYMBOL AFTER ANOTHER OF THE IBM LEGEND IBM WOULD POST RECORD LOSSES IT WOULD PROBABLY HAVE TO ABANDON ITS TREASURED TRADITION OF NEVER LAYING OFF AN EMPLOYEE ITS VAUNTED DIVIDEND THE MAINSTAY OF MILLIONS OF LARGE AND SMALL INVESTORS' PERSONAL FINANCES WAS NO LONGER SAFE IN A TENSE NEWS CONFERENCE MR AKERS GRIMLY REJECTED SUGGESTIONS THAT HE COULDN'T SURVIVE AT IBM IN THE WEEKS AFTER THE DECEMBER ANNOUNCEMENT FORTUNE THE ECONOMIST AND BUSINESS WEEK MAGAZINES URGED MR AKERS TO STEP DOWN SOME BIG INSTITUTIONAL INVESTORS PRESSED FOR MEETINGS WITH IBM AND ITS DIRECTORS A LARGE SHAREHOLDERS' ASSOCIATION STEPPED UP ITS PROXY CAMPAIGN TO STRIP MR AKERS OF HIS CHAIRMAN'S TITLE AND FORCE THE BOARD TO TAKE A STRONGER ROLE IN RUNNING IBM SEVERAL RETIRED IBM EXECUTIVES IN MANY CASES SUFFERING FROM MASSIVE LOSSES ON IBM STOCK BEGAN QUIETLY AGITATING FOR NEW BLOOD AT THE COMPANY IN DECEMBER IBM'S FORMER CHAIRMAN THOMAS J WATSON JR THE SON OF THE COMPANY'S FOUNDER DISCUSSED THE COMPANY'S TRAVAILS IN A LENGTHY WALL STREET JOURNAL INTERVIEW HE STOPPED SHORT OF SUPPORTING MR AKERS ULTIMATELY EVEN IF NONE OF THESE CRITICS HAD ENOUGH IBM STOCK OR INFLUENCE TO PLAY AN INSTRUMENTAL ROLE IN SWAYING MR AKERS OR HIS BOARD THE CUMULATIVE EFFECT TOOK ITS TOLL HE FINALLY CONCLUDED HIS CREDIBILITY INSIDE AND OUTSIDE IS A REAL OBSTACLE TO MOVING AHEAD AND IT WOULD BE BETTER FOR THE BUSINESS TO HAVE A DIFFERENT CHIEF EXECUTIVE SAID ONE LONGTIME IBM EXECUTIVE IN A MESSAGE TO IBM EMPLOYEES MR AKERS SAID I AM PROUD OF OUR ACCOMPLISHMENTS IN THE PAST EIGHT YEARS BUT AM CONVINCED THAT NEW LEADERSHIP WILL SPEED THE COMPANY'S SUCCESS IBM SAID MR AKERS WOULD STAY IN POWER UNTIL THE SEARCH IS COMPLETE AND WOULD KEEP HIS CHAIRMAN'S TITLE FOR AN INDETERMINATE PERIOD BUT MR BURKE SAID HE BELIEVED MR AKERS WOULD STEP DOWN AS CHAIRMAN IF IBM'S NEW CEO REQUESTED IT MR KUEHLER WHO IS BECOMING VICE CHAIRMAN HAD BEEN WIDELY EXPECTED TO RETIRE THIS YEAR MR METZ THE CHIEF FINANCIAL OFFICER WILL LEAVE AT THE END OF JANUARY CLEARING ALL THREE TOP POSITIONS WILL MAKE IT EASIER TO FIND A STRONG NEW EXECUTIVE WHO CAN BUILD HIS OWN MANAGEMENT TEAM MR BURKE SUGGESTED IT MAKES IT EASIER FOR THOSE OF US INVOLVED IN THE SEARCH HE SAID PAUL RIZZO 64 THE RETIRED VICE CHAIRMAN WHO RETURNED THIS YEAR AS A CONSULTANT TO MR AKERS WILL ASSUME THE CHIEF FINANCIAL OFFICER'S POST A MOVE THAT COULD PROVE TEMPORARY IBM INSIDERS SAY THE STRONGTEMPERED FINANCIER IS PLAYING A PIVOTAL ROLE IN RUNNING THE COMPANY DURING ITS CURRENT CRISIS BUT MR BURKE SAID MR RIZZO ISN'T A CANDIDATE FOR CHAIRMAN OR CHIEF EXECUTIVE OFFICER OF IBM ACCORDING TO CONSULTANTS AND OTHER IBM WATCHERS THERE ARE PLENTY OF QUALIFIED OUTSIDERS WHO COULD STEP INTO MR AKERS'S JOB BUT IBM WILL HAVE A TOUGH TIME PERSUADING SOME WISHLIST NAMES SUCH AS GENERAL ELECTRIC CO CHAIRMAN JACK WELCH TO TAKE ON THE GRIEF OF A COMPANY THAT HASN'T YET BOTTOMED OUT INDEED THE PORTRAYAL OF MR AKERS'S EXIT AS VOLUNTARY COULD MAKE THE JOB LESS ATTRACTIVE FOR POTENTIAL SUCCESSORS IF HE FELT THAT THIS THING WAS TURNING AROUND HE WAS IN A POSITION TO FIGHT FOR MORE TIME WITH THE BOARD SAID CONSULTANT DAVID HANNA PRESIDENT OF THE HANNA GROUP AND A FORMER IBM EMPLOYEE WHO WORKED AS MR AKERS'S AIDE HIS DECISION TO CUT HIS LOSSES IS A CLEAR INDICATOR THAT IBM WILL SEE A COUPLE OF MORE QUARTERS OF FINANCIAL TROUBLE SOME OF THE BIG NAMES BEING BANDIED ABOUT FOR CEO OF IBM JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC AND FORMER BOSS OF PEPSICO JOHN YOUNG RECENTLY RETIRED CHIEF EXECUTIVE OF HEWLETTPACKARD CO LAWRENCE BOSSIDY A FORMER GE EXECUTIVE WHO TURNED AROUND ALLIEDSIGNAL PAUL ALLAIRE CHAIRMAN OF XEROX CORP A NOWHEALTHY COMPANY THAT IN THE 1980S FACED ISSUES SIMILAR TO IBM'S AND ROBERT KAVNER ONE OF THE DRIVING FORCES BEHIND THE WELLREGARDED MAKEOVER OF AMERICAN TELEPHONE & TELEGRAPH CO ALSO WIDELY VIEWED AS STRONG CANDIDATES ARE TWO FORMER TOP IBM EXECUTIVES WHO WERE PUSHED OUT BY MR AKERS LAST YEAR MICHAEL ARMSTRONG NOW HEAD OF GENERAL MOTORS CORP'S HUGHES AIRCRAFT DIVISION AND GEORGE CONRADES NOW WORKING AS A CONSULTANT OF THE TWO MR ARMSTRONG IS VIEWED BY MANY AS THE STRONGER CONTENDER AT HUGHES HE HAS BEEN ENGINEERING THE KIND OF RADICAL SHIFTS IN THINKING THAT IBM WILL PROBABLY NEED TO PROSPER MR CONRADES WHO LED IBM'S LATE BUT CRUCIAL MOVE INTO COMPUTER SERVICES IS KNOWN TO BE EAGER TO RETURN TO IBM IT WASN'T CLEAR IF ANY OF THESE EXECUTIVES WOULD SERIOUSLY BE PURSUED BY IBM LOOKING INSIDE IF MR BURKE AND HIS FELLOW DIRECTORS DECIDE TO LOOK FOR AN INTERNAL CANDIDATE THE LEADING CONTENDERS WOULD BE TWO EXCEEDINGLY TRADITIONAL EXECUTIVES MR AKERS RECENTLY ELEVATED TO THE COMPANY'S HIGHEST OPERATING COMMITTEE NED LAUTENBACH THE COMPANY'S TOP INTERNATIONALIST AND BOB LABANT HEAD OF IBM'S HUGE NORTH AMERICAN BUSINESS ANOTHER INSIDER GIVEN SOME CHANCE IS JIM CANNAVINO THE BRASH HEAD OF IBM'S BIG PERSONAL SYSTEMS BUSINESS AMONG IBM'S STRAITLACED MANAGERS HE IS SEEN AS SOMETHING OF A NOVELTY A TECHNICALMINDED EXECUTIVE WITHOUT A COLLEGE DEGREE AND COULD BE THE COMPANY'S CLOSEST THING TO AN INTERNAL OUTSIDER BUT MOST OBSERVERS POLLED YESTERDAY FELT MR BURKE AND HIS COMMITTEE WILL CHOOSE A TRUE OUTSIDER THAT'S WHERE MY MONEY WOULD BE SAID MR SCHWARTZ THE RETIRED SENIOR VICE PRESIDENT ONCE YOU'VE CROSSED THAT BRIDGE A WHOLE BUNCH OF THINGS OPEN UP TO YOU DAVID NADLER A CONSULTANT WHO HAS HELPED A NUMBER OF COMPANIES INCLUDING XEROX AND AT&T TO REDEFINE THEMSELVES SAID IBM WOULD BE BEST SERVED BY AN OUTSIDER SUCCESSFUL CHANGES IN CORPORATE AMERICA HAVE MOST OFTEN BEEN LED BY AN OUTSIDER OR AT LEAST BY SOMEONE FROM OUTSIDE THE COMPANY'S CORE BUSINESS HE SAYS JOHN AKERS IS A PRODUCT OF IBM'S INTERNAL ENVIRONMENT AND ANY INTERNAL CANDIDATE IS A PRODUCT OF THE SAME ENVIRONMENT MR AKERS PLAYED VARSITY HOCKEY AT YALE FLEW PLANES FOR THE NAVY AND THEN ROCKETED UP THE IBM RANKS AS A SUPERSTAR SALESMAN A NEW ENGLANDER WITH A CHEERY BUT CURT MANNER HE BECAME CHIEF EXECUTIVE IN 1985 WHEN IBM WAS SO MIGHTY THAT GOVERNMENTS AROUND THE WORLD WERE SEEKING TO REIN IN ITS POWER HE INHERITED A COMPANY WHOSE LEADERS HAD INVESTED BILLIONS OF DOLLARS IN A MASSIVE GLOBAL EXPANSION TOP OFFICIALS HAD BRAGGED THAT IBM WOULD BECOME AT LEAST A 100 BILLION COMPANY BY TODAY IN FACT MR AKERS SPENT MUCH OF HIS TENURE DISMANTLING HIS PREDECESSORS' SPRAWLING FACTORIES AND STAFFS AS REVENUES CAME NOWHERE NEAR FULFILLING THOSE DREAMS TODAY MANY IN THE COMPUTER INDUSTRY SUPPORT UP TO A POINT MR AKERS'S ACTIONS AND HIS DEFENSE THAT IBM WAS THE VICTIM OF TECHNOLOGICAL AND ECONOMIC FORCES BEYOND HIS CONTROL DURING HIS TENURE AS CEO FOR EXAMPLE MR AKERS REPEATEDLY SAID THAT IBM NEEDS TO SHIFT ITS RESOURCES AWAY FROM COMPUTER HARDWARE AND CONCENTRATE MORE ON FASTGROWING AREAS SUCH AS SOFTWARE AND SERVICES BUT DESPITE MR AKERS'S PROCLAMATIONS AND SEVEN BIG RESTRUCTURINGS THAT HAVE SLICED BILLIONS OF DOLLARS FROM IBM'S BOTTOM LINE HE NEVER CAME CLOSE TO FIXING THE COMPANY IBM IS TRAPPED WITH MASSIVE RESOURCES STILL DEVOTED TO ITS FASTFADING MAINFRAME MARKET WHILE NIMBLER COMPANIES SUCH AS MICROSOFT AND INTEL CORP TAUNT IT WITH RECORD PROFITS DERIVED FROM SOFTWARE AND MICROCHIP INDUSTRIES THAT IBM ESSENTIALLY CEDED IN THE 1980S EVEN AFTER MR AKERS'S LATEST RESTRUCTURING UNVEILED LAST MONTH AT A COST OF 6 BILLION IN PRETAX CHARGES AND ANOTHER 25000 JOB CUTS HE DIDN'T CHANGE HIS FUNDAMENTAL ASSESSMENT THAT IBM'S IMMEDIATE PROSPECTS ARE UNFAVORABLE ANALYSTS SAY THE COMPANY'S CORE MAINFRAME BUSINESS IS CRATERING TOO FAST TO ALLOW IBM'S HEALTHIER OPERATIONS TO COMPENSATE AND THAT RECENT RESULTS HAVE SHOWN THAT THE OTHER BUSINESSES ARE POSTING DECLINES IN ANY CASE DURING THE FOURTH QUARTER FOR INSTANCE IBM'S SUCCESSFUL MINICOMPUTER BUSINESS SHOWED AN UNEXPECTED DROP IN REVENUE WHILE PERSONAL COMPUTERS SHOWED LOSSES DESPITE A 50 SALES SURGE FROM THE PREVIOUS YEAR THE CORNERSTONE OF MR AKERS'S TURNAROUND STRATEGY WAS TO BREAK IBM INTO A DOZEN INCREASINGLY AUTONOMOUS UNITS IN A NOVEMBER INTERVIEW MR BURKE SAID HE BELIEVED IN MR AKERS'S STRATEGY PASSIONATELY HE SAID HE DIDN'T WANT IBM'S BOARD TO GET STAMPEDED AS DIRECTORS INTO ACTIONS THAT ARE INAPPROPRIATE FOR THE LONGTERM AND HE EXPLICITLY SAID HE DIDN'T KNOW OF ANYONE INSIDE OR OUTSIDE IBM WHO COULD RUN THE COMPANY BETTER THAN MR AKERS I KNOW THE BOARD SUPPORTS JOHN SAID MR AKERS'S PREDECESSOR JOHN OPEL IN THE SAME INTERVIEW SESSION MR OPEL STILL AN IBM DIRECTOR IS CHAIRMAN OF THE BOARD'S POWERFUL EXECUTIVE COMMITTEE YESTERDAY MR BURKE SAID THAT AFTER THE NOVEMBER INTERVIEW IBM LEARNED TROUBLING NEW DATA ABOUT ITS HORRENDOUS FOURTH QUARTER WHICH TURNED OUT TO BE IBM'S FIRST OPERATING LOSS EVER THAT WAS THE BEGINNING OF A DEEPENING CONCERN ON MR AKERS'S PART AS WELL AS EVERYBODY ELSE'S PART THAT EXTERNAL OR INTERNAL FORCES MADE EVERYTHING MORE DIFFICULT THAN HERETOFORE EXPECTED MR BURKE SAID FOR MR BURKE AND HIS FELLOW DIRECTORS THE JOB AT IBM MAY HAVE ONLY JUST BEGUN THIS ALMOST MACHO NOTION OF POWERFUL OUTSIDE DIRECTORS STARING DOWN A CEO IS ALL FINE ONCE THE PROBLEM IS CATASTROPHICALLY EVIDENT SAID JOHN POUND A HARVARD PUBLICPOLICY PROFESSOR WHO STUDIES CORPORATE GOVERNANCE BUT BY THAT POINT YOU'RE ALREADY SEVERAL STEPS BEHIND WHERE YOU SHOULD BE THE QUESTION IS WHAT IS THE BOARD GOING TO DO DIFFERENTLY THIS YEAR AND NEXT YEAR AS IT BRINGS IN A NEW CEO STEPHEN D BECHTEL JR RETIRED CHAIRMAN OF BECHTEL GROUP HAROLD BROWN FORMER SECRETARY OF DEFENSE NOW AT THE CENTER OF STRATEGIC AND INTERNATIONAL STUDIES JAMES E BURKE RETIRED CHAIRMAN OF JOHNSON & JOHNSON WILL CHAIR THE OUTSIDE BOARD COMMITTEE THAT WILL SEARCH FOR A NEW CEO THOMAS F FRIST JR HOSPITAL CORPORATION OF AMERICA JUDITH RICHARDS HOPE SENIOR LAW PARTNER AT PAUL HASTINGS JANOFSKY & WALKER NANNERL O KEOHANE PRESIDENT WELLESLEY COLLEGE JACK KUEHLER PRESIDENT RICHARD W LYMAN PRESIDENT EMERITUS STANFORD UNIVERSITY FRANK METZ SENIOR VICE PRESIDENT FINANCE AND PLANNING J RICHARD MUNRO RETIRED COCHAIRMAN TIME WARNER THOMAS S MURPHY CHAIRMAN OF CAPITAL CITIES/ABC JOHN B SLAUGHTER PRESIDENT OCCIDENTAL COLLEGE LO C VAN WACHEM RETIRED PRESIDENT ROYAL DUTCH PETROLEUM CO JOHN OPEL RETIRED CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP IS A DIRECTOR OF IBM A CHART LISTING THE MEMBERS OF IBM'S BOARD AND ACCOMPANYING YESTERDAY'S PAGEONE ARTICLE ON CHANGES AT THE COMPANY DIDN'T INCLUDE MR OPEL'S NAME 9301270057 930127 JAPAN'S US BUYING SPREE DRIES UP AS PROBLEMS GROW BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL A FEW YEARS AGO IT LOOKED AS IF THE JAPANESE COLOSSUS WAS GOING TO BUY UP THE US NO MORE JAPANESE CORPORATIONS HAVE FALLEN ON HARD TIMES AND THEIR APPETITE FOR US ACQUISITIONS IS MUCH DIMINISHED AT THE SAME TIME JAPAN'S INVESTORS ARE DUMPING US STOCKS WILLY NILLY BURDENED BY SLOWING ECONOMIC GROWTH AT HOME A PAST RECORD OF OVERPAYING FOR OVERSEAS ACQUISITIONS AND A WOUNDED DOMESTIC FINANCIAL SYSTEM JAPANESE COMPANIES SPENT ONLY 192 BILLION ON PUBLICLY REPORTED TAKEOVERS AND RELATED DEALS IN THE US LAST YEAR DOWN 50 FROM THE 385 BILLION THEY SHELLED OUT IN 1991 THE TOTAL NUMBER OF DEALS FELL TO 78 FROM 122 THE YEAR EARLIER ACCORDING TO THE JAPAN M&A REPORTER PUBLISHED BY ULMER BROTHERS INC A NEW YORK INVESTMENT BANK JAPANESE INVESTORS ALSO HAVE BEEN RETREATING FROM THE US STOCK MARKET IN THE FIRST THREE QUARTERS OF 1992 THEY SOLD A NET 42 BILLION OF US SHARES ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION WHAT ONCE LOOKED LIKE AN ENDURING MAELSTROM OF JAPANESE INVESTMENT NOW MORE CLEARLY APPEARS TO HAVE BEEN A UNIQUE CONFLUENCE OF ECONOMIC FACTORS WHICH ARE UNLIKELY TO REPEAT THEMSELVES FOR MANY YEARS IF EVER SAID DANIEL M SCHWARTZ MANAGING DIRECTOR AT ULMER BROTHERS AMONG THOSE FACTORS WERE A STRONG YEN HIGHFLYING JAPANESE STOCK AND REAL ESTATE MARKETS LOW INTEREST RATES AND FAST ECONOMIC GROWTH WITH LOW INFLATION IN ADDITION CORPORATE PROFITS WERE SOARING AND JAPAN WAS LIBERALIZING ITS CAPITAL MARKETS WHICH MADE FOREIGN INVESTMENTS LOOK A LOT MORE APPEALING THAN THE LOW YIELDS AVAILABLE IN JAPAN YOU HAD A LOT OF MONEY LOOKING FOR A HOME SAID MR SCHWARTZ MUCH OF THAT MONEY WENT ABROAD NOW A LOT OF IT IS RETURNING HOME TO SHORE UP CRUMBLING BALANCE SHEETS THE MAIN MOTIVATION BEHIND THE SELLOFF OF US STOCKS IS THE REPATRIATION OF ASSETS BACK INTO JAPAN PRIMARILY TO AUGMENT JAPANESE CORPORATE PROFITS WHICH ARE RELATIVELY WEAK SAID PETER DAVIES A VICE PRESIDENT AT NOMURA SECURITIES CO IN NEW YORK HE NOTED THAT THE CAPITAL GAINS ON JAPANESE COMPANIES' OVERSEAS STOCK HOLDINGS HAVE TYPICALLY BEEN MUCH HIGHER THAN THOSE THEY HAVE BEEN ABLE TO REALIZE IN JAPAN'S DOMESTIC MARKETS JAPANESE TAKEOVER DEALS USED TO BE THE STUFF OF HEADLINES IN 1990 FOR INSTANCE MATSUSHITA ELECTRIC INDUSTRIES CO PAID 61 BILLION FOR MCA INC AND IN 1989 WHEN JAPANESE TAKEOVER ACTIVITY PEAKED AT 137 BILLION FIVE ACQUISITIONS COST MORE THAN 500 MILLION EACH A YEAR EARLIER BRIDGESTONE CORP SPENT 26 BILLION FOR FIRESTONE CORP BY CONTRAST 1992'S TWO BIGGEST TRANSACTIONS WERE VALUED AT 350 MILLION EACH IN ONE KYOEI STEEL LTD BOUGHT FLORIDA STEEL CORP THE OTHER DEAL INVOLVED A MULTINATIONAL EFFORT IN WHICH JAPAN AIR LINES CO NISSHO IWAI CORP AND DEUTSCHE LUFTHANSA AG TOOK CONTROL OF AIR COURIER SERVICE OPERATOR DHL INTERNATIONAL LTD JAPANESE COMPANIES STILL ENJOY THE ADVANTAGE OF A STRONG YEN BUT FINANCING FOR POSSIBLE DEALS IS EITHER LACKING OR MUCH MORE EXPENSIVE THAN IT ONCE WAS JAPANESE CORPORATE EARNINGS ARE EXPECTED TO DECLINE IN 1993 FOR THE THIRD YEAR IN A ROW JAPAN'S BANKING SYSTEM IS REELING FROM A COMBINATION OF BAD REAL ESTATE LOANS INCREASED BANKRUPTCIES AND NEW INTERNATIONAL CAPITALADEQUACY GUIDELINES IN ADDITION THE JAPANESE STOCK MARKET HAS PLUNGED 58 FROM ITS LATE 1989 RECORD HIGH MONEY AVAILABLE FOR ACQUISITIONS HAS DRIED UP IN PARTICULAR THE CAPITALADEQUACY REQUIREMENTS ARE PREVENTING JAPANESE BANKS FROM BEING AGGRESSIVE IN LENDING SAID KOICHIRO OKITA A VICE PRESIDENT AT NOMURA AND WITH THE CURRENT ECONOMIC DOWNTURN IN JAPAN JAPANESE COMPANIES ARE FOCUSING ON THEIR DOMESTIC MARKETS SAID MR OKITA THEIR INTERNATIONAL ASPIRATIONS HAVE SHRUNK WHAT'S MORE JAPAN'S CORPORATIONS HAVE LEARNED SOME EXPENSIVE LESSONS FROM THEIR EARLIER BUYING SPREES MR SCHWARTZ OF ULMER BROTHERS SAID THAT PAST JAPANESE ACQUIRERS PAID TOO MUCH TOO QUICKLY WITHOUT REALLY UNDERSTANDING WHAT THEY WERE BUYING THE JAPANESE RETREAT GOES BEYOND THE US JAPANESE ACQUISITIONS IN EUROPE FELL OFF A CLIFF SAID MR SCHWARTZ IN 1992 JAPAN'S INDUSTRIAL COMPANIES AND FINANCIAL INSTITUTIONS PAID 424 MILLION FOR EUROPEAN COMPANIES LESS THAN A FIFTH OF THE 23 BILLION THEY SPENT THE YEAR BEFORE INVESTMENT BANKERS DON'T SEE JAPANESE TAKEOVERS ROARING BACK ANYTIME SOON NOMURA'S MR OKITA PREDICTS THAT JAPANESE COMPANIES WILL RATIONALIZE THEIR US OPERATIONS INVEST MORE SELECTIVELY AND WHEN THEY DO CONCENTRATE ON TAKING MINORITY STAKES RATHER THAN CONTROL MOREOVER HE EXPECTS SOME JAPANESE COMPANIES TO BEGIN SELLING OFF THEIR US UNITS REAL ESTATE COMPANIES DEFINITELY WILL DO IT AND JAPANESE INDUSTRIAL COMPANIES WILL ON A CASEBYCASE BASIS CONSIDER DIVESTITURES SAID MR OKITA WHAT THAT ULTIMATELY MEANS SAYS ONE US INVESTMENT BANKER FORMERLY BASED IN JAPAN IS THAT CAREERS ARE NO LONGER MADE IN TOKYO 9301270056 930127 BUSINESS BRIEF PALL CORP CHARGE WILL BE TAKEN FOR FISCAL SECOND QUARTER PALL CORP SAID IT PLANS TO TAKE A PRETAX CHARGE IN ITS FISCAL SECOND QUARTER OF 20 MILLION TO 25 MILLION OR 11 CENTS TO 14 CENTS A SHARE TO SCALE BACK ITS AEROPOWER FILTERS BUSINESS THE COMPANY WHICH MAKES FILTERS AND OTHER FLUID CLARIFICATION DEVICES FOR VARIOUS INDUSTRIES SAID IT STILL EXPECTS TO REPORT A PROFIT FOR THE QUARTER ENDING SATURDAY IN THE YEARAGO QUARTER PALL HAD NET INCOME OF 189 MILLION OR 17 CENTS A SHARE RESTATED FOR A 4FOR3 STOCK SPLIT IN DECEMBER MAURICE G HARDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE AEROPOWER SEGMENT IS HOLDING DOWN THE COMPANY'S GROWTH MAINLY BECAUSE OF CUTBACKS IN US GOVERNMENT SPENDING PALL PLANS TO DOWNSIZE AND FURTHER INTEGRATE THE MILITARY PORTION OF ITS AEROPOWER BUSINESS WITH ITS INDUSTRIAL FLUID POWER BUSINESS ALTHOUGH MR HARDY SAID THERE WOULD BE SOME JOB LOSSES HE WOULDN'T ELABORATE 9301270055 930127 BUSINESS BRIEF PEOPLES WESTCHESTER SAVINGS BANK THRIFT REJECTS MERGER OFFER FOURTHQUARTER NET TREBLES PEOPLES WESTCHESTER SAVINGS BANK'S STOCK ROSE 9 AFTER THE BANK REJECTED A MERGER OFFER FROM A GROUP OF INVESTORS AND REPORTED A TREBLING OF FOURTHQUARTER NET INCOME FOR THE QUARTER PEOPLES WESTCHESTER REPORTED NET OF 22 MILLION OR 41 CENTS A SHARE COMPARED WITH 731000 OR 14 CENTS A SHARE IN THE YEAREARLIER PERIOD IN OVERTHECOUNTER TRADING PEOPLES WESTCHESTER SHARES GAINED 3 TO 36 THE HAWTHORNE NY BANK'S SHARES WERE AT 2275 WHEN NEWS BROKE JAN 19 ABOUT THE 30ASHARE TENDER FROM THE INVESTOR GROUP THE BANK WHICH CARRIES A BOOK VALUE OF 3129 A SHARE REJECTED THE OFFER AS INADEQUATE THE INVESTOR GROUP WHICH INCLUDES IRWIN JACOBS CARL POHLAD WILLIAM W NICHOLSON GERALD A SCHWALBACH AND CHARTWELL ASSOCIATES SAID THAT IT'S OPEN TO ADJUSTING THE PROPOSED PRICE IN RESPONSE PEOPLES WESTCHESTER SAID IT CONTINUES TO BE INTERESTED IN EXPLORING POSSIBLE MERGERS OR OTHER TRANSACTIONS 9301270054 930127 WHAT'S NEWS BUSINESS AND FINANCE IBM CHAIRMAN JOHN AKERS IS STEPPING DOWN IN AN ABOUTFACE FROM HIS REPEATED INSISTENCE THAT HE WOULD LEAD THE COMPUTER GIANT OUT OF ITS CRISIS AKERS'S TOP TWO LIEUTENANTS ARE ALSO LOSING THEIR POSTS A COMMITTEE OF OUTSIDE DIRECTORS WILL HEAD THE SEARCH FOR AKERS'S SUCCESSOR AND THE PANEL'S LEADER IS CALLING FOR A RADICAL CHANGE CLINTON INTENDS TO UNVEIL HIS ECONOMIC PLAN IN AN ADDRESS TO CONGRESS ON FEB 17 AND AIDES SAY IT WILL PROBABLY INCLUDE SOME SHORTTERM FISCAL STIMULUS TO MAKE THE LONGTERM DEFICIT REDUCTION HE SEEKS EASIER TO SWALLOW BOEING IS SHARPLY CUTTING PRODUCTION RATES FOR ALL OF ITS AIRCRAFT MODELS IN RESPONSE TO THE AIRLINE RECESSION SEPARATELY BOEING POSTED AN 11 DECLINE IN FOURTHQUARTER NET INCOME UNITED TECHNOLOGIES REPORTED A 333 MILLION FOURTHQUARTER LOSS AFTER A BIGGERTHANEXPECTED CHARGE AND SAID IT WILL CUT 6000 TO 7000 MORE JOBS CONSUMER CONFIDENCE LEVELED OFF THIS MONTH AFTER INCREASING SHARPLY AT THE END OF 1992 A SURVEY FOUND SALES OF EXISTING HOMES CLIMBED 5 IN DECEMBER FROM NOVEMBER HITTING THEIR HIGHEST LEVEL IN 13 YEARS MCDONNELL DOUGLAS RECEIVED IMPROPER PAYMENTS FROM THE AIR FORCE IN 1990 WHEN THE MILITARY BELIEVED THE CONTRACTOR WAS ON THE VERGE OF BANKRUPTCY A PENTAGON INQUIRY FOUND US TARIFFS ON MINIVANS AND SPORT UTILITY VEHICLES COULD RISE TENFOLD UNDER STEPS BEGUN BY THE GOVERNMENT BOND PRICES FELL SHARPLY WHILE STOCKS AND THE DOLLAR FINISHED MIXED THE BENCHMARK 30YEAR TREASURY BOND'S PRICE LOST MORE THAN 3/4 POINT TIME WARNER PLANS TO BUILD A COMPUTERIZED NETWORK TO PROVIDE MOVIES ON DEMAND TELEPHONE SERVICES INTERACTIVE GAMES AND HOME SHOPPING BANKAMERICA POSTED STRONG FOURTHQUARTER EARNINGS DESPITE CALIFORNIA'S PROLONGED ECONOMIC WOES THE COMPANY'S STOCK JUMPED 225 TO 53625 USX POSTED A 343 MILLION FOURTHQUARTER LOSS LARGELY DUE TO CHARGES AT US STEEL FELLOW STEELMAKER ARMCO IS TAKING CHARGES OF MORE THAN 300 MILLION AND CUTTING ITS STAFF BY 12 UNITED AIRLINES IS ELIMINATING 10 EXECUTIVE POSTS IN A COSTCUTTING MOVE BUT ITS UNIONS ARE RESISTING THE UAL UNIT'S BID FOR LABOR CONCESSIONS BRITAIN SLASHED A KEY LENDING RATE BY ONE PERCENTAGE POINT TO THE LOWEST LEVEL SINCE 1977 LONDON STOCKS JUMPED 23 ON THE MOVE THE POUND SANK JAPANESE COMPANIES SPENT 50 LESS ON TAKEOVERS AND RELATED DEALS IN THE US LAST YEAR THAN THE YEAR BEFORE REFLECTING JAPAN'S TROUBLED ECONOMY SHORT INTEREST ROSE 21 AMONG OVERTHECOUNTER STOCKS IN THE LATEST PERIOD ENDING A TWOMONTH SLIDE SUMITOMO BANK IS WRITING OFF 8112 MILLION IN BAD REAL ESTATE LOANS MARKING ONE OF THE BIGGEST MOVES YET BY A JAPANESE BANK TO PUT THE EXCESSES OF THE NATION'S ASSET BOOM BEHIND IT GEORGIAPACIFIC IS EXPECTED TO NAME AD PETE CORRELL WHO IS PRESIDENT OF THE WOODPRODUCTS AND PAPER COMPANY TO SUCCEED T MARSHALL HAHN JR AS ITS CHIEF EXECUTIVE BONDS LEHMAN BROTHERS TREASURY INDEX 480009 OFF 2296 COMMODITIES OIL 1964 A BARREL OFF TWO CENTS DOW JONES FUTURES INDEX 12098 UP 046 SPOT INDEX 12168 OFF 050 DOLLAR 12356 YEN UP 011 15764 MARKS OFF 00006 9301270053 930127 BUSINESS BRIEF CENTERIOR ENERGY CORP FOURTHQUARTER NET FELL 15 ON LOWER ELECTRICITY USAGE CENTERIOR ENERGY CORP'S REPORTED FOURTHQUARTER NET INCOME FELL 15 TO 47 MILLION OR 33 CENTS A SHARE CITING MILD WEATHER WHICH REDUCED ELECTRICITY USAGE AND A STALLED ECONOMIC RECOVERY THE INDEPENDENCE OHIO ELECTRIC UTILITY HOLDING COMPANY'S RESULTS COMPARE WITH YEARAGO NET OF 55 MILLION OR 39 CENTS A SHARE REVENUE ROSE SLIGHTLY TO 600 MILLION FROM 590 MILLION FOR 1992 NET WAS 212 MILLION OR 150 A SHARE ON REVENUE OF 24 BILLION COMPARED WITH 1991 NET OF 237 MILLION OR 171 A SHARE ON REVENUE OF 26 BILLION THE COMPANY SAID 1992 EARNINGS WERE NOT CONSISTENT WITH ITS EXPECTATIONS CENTERIOR SAID IT WILL MAINTAIN ITS 160 A YEAR DIVIDEND EVEN IF THAT DIVIDEND EXCEEDS OUR REPORTED EARNINGS FOR THE SHORT TERM THE COMPANY SAID A RATE STABILIZATION PROGRAM APPROVED LAST OCTOBER COMBINED WITH FORECASTED SALES GROWTH AND COSTCUTTING AND REVENUEENHANCING MEASURES ARE EXPECTED TO INCREASE EARNINGS FROM THE 1992 LEVEL 9301270052 930127 TECHNOLOGY & MEDICINE SONY INTRODUCES HOME MINIDISC PRICED AT 1000 BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN ESCALATION OF THE BATTLE BETWEEN NEW DIGITAL RECORDING FORMATS SONY CORP UNVEILED ITS FIRST HOME MINIDISC PLAYER/RECORDER AND SAID IT PLANS TO SHIP THE 1000 UNIT TO DEALERS THIS APRIL SONY'S HOME MINIDISC IS A FRONTAL ATTACK ON THE HOME DIGITAL COMPACT CASSETTE DCC PLAYERS ALREADY ON THE MARKET FROM RIVALS PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO MANUFACTURERS OF MINIDISC AND DCC WHICH BOTH PROVIDE HISSFREE DIGITAL RECORDINGS ARE VYING TO REPLACE THE STANDARD ANALOG AUDIOCASSETTE AND BECOME THE PREFERRED FORMAT FOR THE NEXT GENERATION OF AUDIO SYSTEMS SONY INTRODUCED LIMITED QUANTITIES OF A PORTABLE MINIDISC BEFORE CHRISTMAS THEY SOLD OUT QUICKLY WITH THE ADDITION OF A HOME UNIT SONY WILL BY LATE SPRING HAVE EXPANDED THE MINIDISC AUDIO TECHNOLOGY TO ALL POSSIBLE LISTENING CONFIGURATIONS AN AUTOMOBILE MINIDISC PLAYER IS SCHEDULED FOR SHIPMENT TO DEALERS IN MARCH ELECTRONICS INDUSTRY EXECUTIVES ARE WATCHING THE VARIOUS MINIDISC INTRODUCTIONS AS WELL AS THOSE FOR DCC TO DECIDE WHICH WILL WIN EARLY CONSUMER ACCEPTANCE LAST YEAR DCC MANUFACTURERS TOOK THE OPPOSITE TACK FROM SONY INTRODUCING SYSTEMS FOR THE HOME FIRST THIS YEAR THEY ARE PLANNING TO EXPAND INTO THE PORTABLE AND AUTO MARKETS LIKE THE SONY PORTABLE MINIDISC PLAYERS THE COMPANY'S BOOKSHELFSIZED HOME MINIDISC DECK BOTH RECORDS AND PLAYS 25INCH COMPACT DISKS BUT THE HOME UNIT OFFERS NEW EDITING FEATURES THAT SURPASS TODAY'S TYPICAL TAPE CASSETTE DECKS FOR EXAMPLE AT THE PUSH OF A BUTTON IT CAN COMBINE TWO MUSICAL TRACKS INTO ONE ERASE SINGLE TRACKS AND REARRANGE THE ORDER IN WHICH THE TRACKS PLAY ITS HIGH PRICE HOWEVER COULD BE A BARRIER TO WIDE EARLY ACCEPTANCE AT 1000 THE HOME UNIT IS WELL ABOVE THE 200 TO 600 PRICE RANGE OF A TYPICAL SONY COMPACT DISK PLAYER DCC MANUFACTURERS PLAYED DOWN THE MINIDISC ENTRY INTO THE HOME MARKET CONTENDING THAT THE SUPERIOR SOUND QUALITY OF DCC PLAYERS WILL PREVAIL AS THESE PRODUCTS ENTER THE HOME THEIR SOUND QUALITY WILL BECOME AN ISSUE WITH CONSUMERS SAID MIKE PIEHL MARKETING MANAGER OF AUDIO PRODUCTS FOR THE USBASED PHILIPS CONSUMER ELECTRONICS CO UNIT WHICH MARKETS THE DCC PLAYERS AFTER SOME RECENT CRITICAL REVIEWS OF THE MINIDISC SOUND QUALITY IT SEEMS IRONIC SONY WOULD WASTE THEIR TIME WITH A HOME UNIT MR PIEHL ADDED HE CITED BRITAIN'S HIFI CHOICE MAGAZINE WHICH SAID THE MINIDISC FORMAT LAGS BEHIND IN TERMS OF SOUND QUALITY BY TODAY'S STANDARDS A SPOKESMAN FOR SONY SAID THE COMPANY NEVER PROMISED THAT MINIDISC'S SOUND WOULD BE AS GOOD AS THAT OF CD BUT IT IS MUCH BETTER THAN ANALOG TAPE AND IT APPROACHES THE SOUND OF CD THE SPOKESMAN SAID OF THE REVIEWS PHILIPS CITES THE SONY SPOKESMAN NOTED THAT A NUMBER OF REVIEWS EITHER HEDGED ON WHICH RECORDING FORMAT WAS BETTER OR SAID NEITHER DCC NOR MINIDISC WERE UP TO CD SOUNDQUALITY STANDARDS 9301270051 930127 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANALOG DEVICES INC AN OFFERING OF 80 MILLION OF NOTES VIA GOLDMAN SACHS & CO AND JP MORGAN SECURITIES INC COMCAST CORP A SHELF OFFERING OF 7485 MILLION IN SENIOR DEBENTURES SENIOR SUBORDINATED DEBENTURES OR SUBORDINATED DEBENTURES EASTEX ENERGY INC AN OFFERING OF 22 MILLION COMMON SHARES VIA MABON SECURITIES CORP STANLEY FURNITURE CO AN OFFERING OF 15 MILLION COMMON SHARES PLUS AN ADDITIONAL 225000 SHARES SUBJECT TO THE UNDERWRITERS' OVERALLOTMENT OPTIONS VIA WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS AND RAYMOND JAMES & ASSOCIATES INC TCW/DW TERM TRUST 2003 AN OFFERING OF 10 MILLION BENEFICIAL SHARES VIAGENE INC AN INITIAL OFFERING OF 25 MILLION COMMON SHARES VIA FIRST BOSTON CORP PRUDENTIAL SECURITIES INC AND NOMURA SECURITIES INC WLR FOODS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA AG EDWARDS & SONS INC AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS 9301270050 930127 ECONOMY AUTO INDUSTRY MAY GET BOOST FROM CLINTON HIGHER TARIFFS ON MINIVANS SPORT UTILITY VEHICLES FROM JAPAN ARE MULLED BY DOUGLAS LAVIN AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE FIRST STEP BY THE CLINTON ADMINISTRATION TO OFFER TRADE PROTECTION TO THE DOMESTIC AUTO INDUSTRY THE TREASURY DEPARTMENT HAS BEGUN A PROCEEDING THAT COULD LEAD TO A TENFOLD INCREASE ON THE TARIFFS ON FOREIGN MINIVANS AND SPORT UTILITY VEHICLES AND POTENTIALLY RAISE PRICES BY THOUSANDS OF DOLLARS THE TREASURY'S MOVE COMES AS THE BIG THREE ARE AMASSING ALLEGATIONS TO SUPPORT A SWEEPING DUMPING CASE THAT COULD IMPOSE DUTIES ON ALL JAPANESE PASSENGER CARS BIG THREE OFFICIALS CONFIRMED YESTERDAY THAT THEY ARE SERIOUSLY STUDYING ASKING FEDERAL TRADE OFFICIALS TO FIND THAT JAPANESE AUTO MAKERS ARE ILLEGALLY SELLING CARS IN THE US AT PRICES LOWER THAN THOSE CHARGED IN JAPAN BUT OFFICIALS OF GENERAL MOTORS CORP FORD MOTOR CO CHRYSLER CORP AND THEIR LOBBYING ARM THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION INSISTED THEY HAVEN'T REACHED A DECISION ON WHETHER TO FILE AN ANTIDUMPING CASE HOWEVER EVEN THE THREAT OF SUCH ACTION FIRST REPORTED IN YESTERDAY'S NEW YORK TIMES AND DETROIT NEWS PUTS PRESSURE ON JAPANESE AUTO MAKERS TO RAISE PRICES AND CUT SHIPMENTS TO THE US ANALYSTS AND GOVERNMENT OFFICIALS SAID THE PROPOSED MOVES SEEM TO BE A PART OF EFFORTS TO SEEK A PROTECTIONIST SOLUTION TO ISSUES OF COMPETITIVENESS OF THE US AUTO INDUSTRY SAID AN OFFICIAL AT NISSAN MOTOR CO IN ADDITION THE AUTO MAKERS ARE CONSIDERING WHETHER TO ASK THE ADMINISTRATION TO LEVY A TAX ON AUTOS SOLD IN THE US AN INDUSTRY OFFICIAL SAID WITH THE PROCEEDS LARGELY GOING TO DEFRAY BIG THREE HEALTH AND PENSION COSTS THE US AUTO MAKERS COMPLAIN THAT THEY HAVE A 600ACAR DISADVANTAGE IN SOCIAL COSTS COMPARED WITH JAPANESE COMPANIES THAT HAVE PLANTS IN THE US BECAUSE SUCH TRANSPLANTS EMPLOY A YOUNGER WORK FORCE AND HAVE LOWER HEALTH AND PENSION COSTS THEY WANT TO MAKE SURE THE TRANSPLANTS ARE AS UNCOMPETITIVE AS THEIR OLDER PLANTS SAID JIM OLSON GROUP VICE PRESIDENT EXTERNAL AFFAIRS FOR TOYOTA MOTOR CO'S US SALES ARM A SHOWDOWN OVER USJAPAN AUTO TRADE HAS BEEN LOOMING SINCE MR CLINTON WAS ELECTED WITH A BIG BOOST FROM THE UNITED AUTO WORKERS UNION AND OTHER GROUPS THAT SAW HIM AS MORE WILLING THAN FORMER PRESIDENT BUSH TO GIVE A HEARING TO PROTECTIONIST APPEALS INDEED BIG THREE AND UAW LEADERS WERE ALL SMILES WHEN THEY EMERGED FROM A MEETING WITH MR CLINTON AND VICE PRESIDENT ALBERT GORE IN LITTLE ROCK ARK EARLIER THIS MONTH RAISING THE 25 TARIFF ON IMPORTED MINIVANS AND SPORT UTILITY VEHICLES TO 25 WAS A TOP ITEM ON THE BIG THREE AGENDA A FEW WEEKS AFTERWARD MR GORE SAID DURING A TELEVISION NEWS SHOW DON'T BE SURPRISED IF YOU SEE A CHANGE IN MINIVAN TARIFFS MINIVANS AND SPORT UTILITY VEHICLES CURRENTLY ARE CLASSIFIED AS CARS AND ARE SUBJECT TO 25 TARIFFS THE TREASURY HAS BEGUN A PROCEEDING TO CONSIDER WHETHER TO ACT ON ITS OWN TO RECLASSIFY THE VEHICLES AS TRUCKS WHICH ARE SUBJECT TO 25 TARIFFS AS A FIRST STEP A TREASURY SPOKESMAN SAID THE AGENCY WAS REVIEWING HOW THE BUSH ADMINISTRATION DECIDED TO CLASSIFY THE VEHICLES AS CARS A SEPARATE CONGRESSIONAL EFFORT TO LEGISLATE THE HIGHER TARIFF ALSO IS UNDER WAY IN 1989 THE BUSH TREASURY OVERTURNING A CUSTOMS DEPARTMENT DECISION RULED THAT JAPANESE MINIVANS QUALIFIED FOR THE AUTOMOBILE TARIFF RATE OF 25 DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON RAN COMMERCIALS ATTACKING THE DECISION FOR SAVING THE JAPANESE MILLIONS AND GIVING THE JAPANESE AN UNFAIR ADVANTAGE OVER OUR TRUCKS AND WORKERS DURING THE CAMPAIGN MR CLINTON STUDIOUSLY AVOIDED TAKING DETAILED POSITIONS ON NEARLY ALL TRADE DISPUTES EXCEPT THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH HE CAUTIOUSLY ENDORSED BUT NOW HE FACES PROTECTIONIST PRESSURES FROM A HOST OF INDUSTRIES EITHER THE CLINTON ADMINISTRATION SETS ITS TRADE AGENDA SOON OR YOU'LL HAVE OTHER POWERFUL INTERESTS SET THE AGENDA FOR IT WARNED PAULA STERN FORMER HEAD OF THE INTERNATIONAL TRADE COMMISSION AND A CLINTON TRADE ADVISER ACCEDING TO DETROIT'S WISHES MAY NOT BE A SIMPLE MATTER JAPANESE OFFICIALS HAVE WARNED IN RECENT WEEKS THAT PROTECTIONISM FROM WASHINGTON COULD PROMPT RETALIATION FROM TOKYO MOREOVER RECLASSIFYING MINIVANS AS TRUCKS ALSO COULD RUN AFOUL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WHERE THE US COMMITS ITSELF TO CERTAIN TARIFFS A US TRADE OFFICIAL SAID WE ARE VERY CONCERNED ABOUT THE US MOVEMENT AND WE HOPE THE NEW US ADMINISTRATION WILL SHOW A REASONABLE ATTITUDE ABOUT THE MINIVAN TARIFF SAID HIROKAZU HAYASHI DIRECTOR OF THE AUTOMOBILEINDUSTRY DIVISION AT JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY ON THE POSSIBLE DUMPING CASE MR HAYASHI NOTED THAT JAPANESE CAR MANUFACTURERS RAISED THEIR PRICES FOR EXPORTING CARS SEVERAL TIMES LAST YEAR IN THAT SENSE I BELIEVE JAPANESE CAR MAKERS IN GENERAL DON'T DUMP THEIR EXPORTED CARS ANOTHER RISK FOR DETROIT IS THAT PROTECTION WON'T REALLY HELP THE JAPANESE HAVE REBOUNDED FROM EACH SUCCESSIVE ROUND OF TRADE RESTRICTIONS STRONGER THAN THEY WERE BEFORE THE IMPORT QUOTAS OF THE EARLY 1980S FOR EXAMPLE LED THE JAPANESE TO BUILD THE US FACTORIES THAT FUELED THEIR EXPLOSIVE MARKETSHARE GROWTH IN THE LATTER PART OF THE DECADE ULTIMATELY OF COURSE ANY INCREASE IN TARIFFS WILL COME OUT OF CONSUMERS' POCKETS HIGHER PRICES WERE THE RESULT IN THE EARLY 1980S WHEN DETROIT SOUGHT AND WON RESTRICTIONS IN THE NUMBER OF JAPANESE VEHICLES EXPORTED TO THE US SIMILARLY LAST YEAR DETROIT ACCUSED JAPANESE MANUFACTURERS OF DUMPING MINIVANS IN THE US THEY LOST THE CASE BECAUSE THEY WEREN'T ABLE TO PROVE ANY DAMAGE THE CASE IS ON APPEAL BUT THE ISSUE IS ALMOST MOOT TOYOTA SHARPLY RAISED THE PRICE OF ITS PREVIA VANS AND JAPANESE AUTO MAKERS SAW THEIR SHARE OF THE MINIVAN SEGMENT FALL TO 8 FROM ABOUT 13 GARY HUFBAUER A TRADE EXPERT AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK ESTIMATED THAT INCREASING MINIVAN TARIFFS WOULD COST CONSUMERS 1 BILLION ANNUALLY IN HIGHER PRICES THAT COULD INFLATE STICKER PRICES FOR BOTH US AND JAPANESE CARS AN ADDITIONAL 1000 TO 2500 A VEHICLE SAID DAVID SOWERBY AN ECONOMIST WITH COMERICA BANK IN DETROIT THAT'S A TOUGH SELL TO CONSUMERS WHO REPEATEDLY IN SURVEYS LIST STICKER SHOCK AS THE MAJOR REASON FOR THEIR RESTRAINT IN CAR PURCHASES MR SOWERBY SAID IN PAST ECONOMIC RECOVERIES CAR SALES HAVE JUMPED NEARLY 20 FROM THE RECESSION TROUGH BUT LAST YEAR TECHNICALLY THE FIRST YEAR OF A RECOVERY AUTO SALES ROSE ONLY 3 HE SAID JAPANESE AUTO MAKERS ARE SURE TO HIGHLIGHT THE IMPACT ON CONSUMERS AS THEY COUNTERATTACK THE BIG THREE WANT THE AMERICAN CONSUMER TO PAY THE PRICE TO ISOLATE THEM FROM COMPETITIVE PRESSURES SAID DICK RECCHIA CHIEF OPERATING OFFICER FOR MITSUBISHI MOTORS CO'S US ARM IN 1981 THROUGH 1985 THEY RAISED THEIR PRICES AS JAPANESE SUPPLIES WERE RESTRICTED AND THEY HAD RECORD PROFITS EVEN MICHIGAN REP SANDER LEVIN A BIG BOOSTER OF THE AUTO INDUSTRY SAID A DUMPING CASE MAY RAISE PRICES FOR CONSUMERS BUT THE DEMOCRAT SAID TOUGH ACTION IS NEEDED TO HEAD OFF AUTOINDUSTRY LAYOFFS RESULTING FROM JAPANESE COMPETITION THE WORST CONSUMER IS THE UNEMPLOYED CONSUMER HE MAINTAINED ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE 9301270049 930127 TUESDAY'S MARKETS INDUSTRIALS END WITH 675 RISE AS BONDS DROP BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A ROBUST STOCK MARKET RALLY FIZZLED IN THE LATE AFTERNOON LEAVING PRICES MIXED BOND PRICES FELL SHARPLY AND THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE ROSE 675 POINTS TO 329895 IN VERY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 006 TO 43995 AND THE NASDAQ COMPOSITE INDEX INCHED UP 021 TO A RECORD 70716 THE DOW JONES INDUSTRIALS WERE UP NEARLY 28 POINTS ON POSITIVE ECONOMIC NEWS AND STRONG OVERSEAS MARKETS BEFORE PROFITTAKERS MOVED IN IGNITING A WAVE OF PROGRAM SELLING STOCK MARKET INVESTORS WERE ENCOURAGED BY A 5 JUMP IN SALES OF EXISTING SINGLEFAMILY HOMES IN DECEMBER TO THE HIGHEST LEVEL IN MORE THAN 13 YEARS STOCKS ALSO WERE BOOSTED BY A REPORT SHOWING STRONG RETAIL SALES IN THE FIRST THREE WEEKS OF JANUARY BUT SAGGING US BOND PRICES WERE A CLOUD OVER US STOCKS THROUGHOUT THE DAY AND STOCK PRICES FINALLY CAPITULATED IN THE LAST HOUR OF THE SESSION ANALYSTS SAID THAT BOND PRICES WERE DUE FOR A CORRECTION AFTER THEIR HEALTHY GAINS IN RECENT DAYS AND THAT THE UPBEAT ECONOMIC REPORTS PROVIDED A CATALYST THE BOND MARKET HAS HAD FOUR VERY STRONG DAYS SAID GAIL DUDACK MARKET STRATEGIST AT SG WARBURG THE PULLBACK IS VERY NORMAL IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3114 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1097 ISSUES ROSE AND 824 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE TUMBLED MORE THAN 3/4 OF A POINT OR OVER 750 FOR EACH 1000 FACE AMOUNT TO YIELD 725 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15764 MARKS AND 12356 YEN COMPARED WITH 15770 MARKS AND 12345 YEN MONDAY 9301270048 930127 INSIDE TRACK BASEBALL CARD STOCKS HEAD FOR SHOWERS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BASEBALLCARD STOCKS WERE HIT BY NEWS THAT MARKET LEADER TOPPS CO WILL REPORT ITS FIRST QUARTERLY LOSS IN MORE THAN A DECADE TOPPS WHICH EXPERIENCED STRONG INSIDER SELLING LAST YEAR SANK 31 TO 850 FROM 1225 ON SEVEN TIMES ITS USUAL VOLUME LATE MONDAY AFTER THE CLOSE OF THE STOCK MARKET THE COMPANY SAID THAT A MARKET CONTRACTION WOULD RESULT IN A LOSS FOR ITS FOURTH QUARTER ENDING FEB 28 THE ANNOUNCEMENT SENT SHARES OF SEVERAL OTHER COMPANIES IN THE SPORTSMEMORABILIA BUSINESS SOUTH YESTERDAY AMONG THEM WAS MARVEL ENTERTAINMENT GROUP THE COMICBOOK GIANT THAT PURCHASED CARD MANUFACTURER FLEER CORP LAST SEPTEMBER SHARES OF MARVEL WHICH ACCORDING TO ANALYSTS GETS ROUGHLY HALF ITS REVENUE FROM FLEER SLID 325 OR 115 TO 24875 ON FIVE TIMES ITS NORMAL VOLUME THE SPECULATIVE BUBBLE HAS BURST IN THE NEW CARDS SAID ROBERT LIFSON PRESIDENT OF ROBERT EDWARD AUCTIONS INC A HOBOKEN NJ AUCTIONEER OF SPORTS MEMORABILIA SPECULATORS ARE NOT BUYING 100 CASES AND PUTTING THEM IN THEIR GARAGE BECAUSE THEY HAVEN'T BEEN REWARDED FOR DOING THAT IN THE NEW ENVIRONMENT MR LIFSON SAID THERE ISN'T ROOM FOR AS MANY COMPANIES TO PUT OUT AS MUCH AS THEY DO AND TO BE PROFITABLE AS REPORTED IN THIS COLUMN OCT 14 TOPPS'S PRESIDENT JOHN LANGDON SOLD ALL HIS 100000 TOPPS SHARES IN JUNE AND JULY OF LAST YEAR EARLIER IN 1992 CAME SALES TOTALING 628860 SHARES BY FOUR OTHER TOPPS INSIDERS INCLUDING THE CHIEF FINANCIAL OFFICER AND THEODORE FORSTMANN A PRINCIPAL IN INVESTMENT FIRM FORSTMANN LITTLE & CO FORSTMANN LITTLE HELD A MAJORITY STAKE IN TOPPS BUT DISTRIBUTED IT TO LIMITED PARTNERS IN LATE 1991 THE HEAVY INSIDER SELLING BY TOPPS OFFICIALS AND THE LIMITED PARTNERS STARTED SOON AFTERWARD THE INSIDER SALES IN 1992 WERE AT PRICES RANGING FROM 15375 TO 19 A SHARE TOPPS STOCK HOVERED IN THAT RANGE FOR MUCH OF 1992 BUT BEGAN TO SLIDE IN DECEMBER AS THIRDQUARTER EARNINGS CAME IN WELL BELOW WALL STREET EXPECTATIONS ARTHUR T SHORIN TOPPS CHAIRMAN SAID IN AN INTERVIEW YESTERDAY THAT MR LANGDON HAD SOLD HIS SHARES TO BUY A HOUSE AND THAT THE OTHER INSIDERS TRIMMED THEIR HOLDINGS FOR PERSONAL REASONS WHILE THERE IS A SHAKEOUT UNDER WAY AMONG CARD MANUFACTURERS HE SAID IT WILL BE THE WEAKER COMPETITORS NOT TOPPS THAT GET TAKEN OUT OF THE GAME TOPPS HAS AN ESTABLISHED NAME AND FRANCHISE HE SAID AND WILL WEATHER ITS PROBLEMS TOPPS EXPECTS STRONG SALES OF ITS 1993 STADIUM CLUB BASKETBALL CARDS HE SAID AND DEMOGRAPHICS ARE WORKING IN THE COMPANY'S FAVOR WE'VE GOT MORE BOYS COMING INTO THE HOBBY MR SHORIN SAID WHILE TOPPS MADE A MISTAKE BY BEING SLOW TO ENTER THE HIGHERPRICED PREMIUMCARD MARKET THAT MANY HOBBYISTS FAVOR HE SAID THE COMPANY HAS MOVED AGGRESSIVELY INTO THE FIELD AFTER THE TOPPS ANNOUNCEMENT SHEARSON LEHMAN BROTHERS ANALYST EDWARD CIMILLUCA SLASHED HIS EARNINGS ESTIMATES ON TOPPS TO 75 CENTS A SHARE FROM 118 THIS YEAR AND TO 90 CENTS A SHARE FROM 135 FOR THE YEAR ENDING FEB 28 1994 HE ALSO CHANGED HIS RATING ON THE STOCK TO UNDERPERFORM HIGH RISK FROM BUY HIGH RISK AT MARVEL OFFICIALS YESTERDAY DECLINED REPEATED REQUESTS FOR COMMENT ON THE STOCK DECLINE BUT ISSUED A STATEMENT SAYING THAT FLEER CONTINUES TO PERFORM AS EXPECTED SPORTSCARD REVENUE SHOWED STRONG DOUBLEDIGIT GROWTH IN 1992 THE COMPANY SAID IT ADDED THAT IT IS COMFORTABLE WITH STREET ESTIMATES OF 65 CENTS A SHARE FOR FISCAL 1992 AND 107 TO 108 A SHARE FOR FISCAL 1993 PRICES OF THREE OTHER SPORTS AND SPORTSCARD COMPANIES THAT TRADE OVER THE COUNTER ALSO FELL YESTERDAY ON HIGHERTHANUSUAL VOLUME SCORE BOARD INC A MAKER OF CARDS AND SPORTS PRODUCTS WAS OFF 150 TO 2250 SPORTSTOWN INC WHICH DEALS IN SPORTING GOODS SLID 275 TO 950 AFTER A PRUDENTIAL SECURITIES INC ANALYST SWITCHED THE FIRM'S RECOMMENDATION ON THE STOCK TO HOLD FROM BUY SPORTS HEROES INC AN ORADELL NJ DEALER IN HISTORIC SPORTS MEMORABILIA A SEGMENT OF THE MARKET IN WHICH PRICES HAVE BEEN A LITTLE FIRMER EASED 25 CENTS TO 575 IN THE SPORTSCARD MARKET DEALERS ESTIMATE THAT PRICES ARE DOWN ABOUT 10 ON PRE1970S CARDS AND AS MUCH AS 40 FOR 1980S BASEBALL CARDS ROBERT WYNNE WHO COVERS THE SPORTSCARD INDUSTRY FOR TUFF STUFF A HOBBYIST'S MAGAZINE BASED IN RICHMOND VA SAID THE OVERSUPPLY HAS CHOKED THE GOOSE THAT LAID THE GOLDEN EGGS ANALYSTS AND DEALERS ARGUE THAT MARVEL'S DIVERSIFICATION INTO COMIC BOOKS AND RELATED LICENSING AGREEMENTS AND FILMS FEATURING ITS CHARACTERS INSULATE IT FROM WEAKNESS IN BASEBALLCARD SALES MOREOVER SOME COLLECTORS SAY COMIC BOOKS MAY BE ON THE VERGE OF A BOOM OF THEIR OWN MICHAEL GIDWITZ A CHICAGO INVESTMENT ADVISER WITH A COLLECTION OF MORE THAN 500000 SPORTS CARDS SAYS HE HAS RECENTLY BEEN MOVING INTO COMIC ART EVEN THOUGH I'VE NEVER READ A COMIC BOOK IN MY LIFE HE SAYS IT'S CHEAPER YOU CAN BUY A LOT IT HAS OUTSTANDING EYE APPEAL AND THE RISKREWARD RATIO AS AN INVESTMENT IS BETTER STARTING FEB 5 GUERNSEY'S AUCTION HOUSE IN NEW YORK IN A THREEDAY SALE OF COMIC AND ANIMATION ART WILL PUT ON THE BLOCK THE ARTWORK FROM THE RECORDSELLING DEATH OF SUPERMAN COMIC SOME EXPECT THE SALE TO HEAT UP THAT MARKET 9301270047 930127 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE REAFFIRMED ITS RIGHT TO LIFT A MILITARY BAN ON GAYS THE CLINTON ADMINISTRATION ASSERTED ITS RIGHT TO REVOKE THE PROHIBITION WITHOUT THE CONSENT OF CONGRESS SOME REPUBLICAN LAWMAKERS ACCUSED THE PRESIDENT OF IGNORING THE OBJECTIONS OF THE JOINT CHIEFS OF STAFF AND SAID THEY WERE DISCUSSING HOW TO FORCE A VOTE ON MAINTAINING THE BAN BUT SENATE MAJORITY LEADER MITCHELL PREDICTED IT WILL ALL BE WORKED OUT THE WHITE HOUSE PRESS SECRETARY SAID CLINTON PROBABLY WOULD ANNOUNCE HIS DECISION TODAY DEFENSE DEPARTMENT OFFICIALS SOUGHT TO STRESS THE DEPTH OF PUBLIC OPPOSITION TO ANY LIFTING OF THE BAN BY SAYING THE PENTAGON HAD RECEIVED HUNDREDS OF TELEPHONE CALLS AGAINST CLINTON'S STANCE A SENATE PANEL APPROVED A BILL REQUIRING LARGE COMPANIES TO GIVE WORKERS UNPAID LEAVE FOR A FAMILY OR MEDICAL EMERGENCY PUSHING THE MEASURE TOWARD APPROVAL BY CONGRESS AN IDENTICAL BILL IS EXPECTED TO PASS A SIMILAR HOUSE COMMITTEE TODAY THE LEGISLATION WHICH WAS VETOED BY BUSH IS STRONGLY SUPPORTED BY CLINTON THE FBI HAS REACHED AN AGREEMENT WITH ITS BLACK AGENTS TO SETTLE CHARGES THAT THE FEDERAL AGENCY PRACTICED DISCRIMINATION THE PROPOSED SETTLEMENT CALLS FOR THE PROMOTION OR TRANSFER OF SOME BLACK AGENTS AND REASSIGNMENT OR SPECIAL TRAINING FOR OTHERS CLINTON NOMINATED THOMAS PICKERING TO BE US AMBASSADOR TO RUSSIA PICKERING A CAREER DIPLOMAT WHO HAD SERVED AS BUSH'S UN AMBASSADOR DURING THE PERSIAN GULF WAR IS CURRENTLY THE US AMBASSADOR TO INDIA THE MOSCOW POST HAS REMAINED VACANT SINCE THE FALL WHEN BUSH APPOINTEE ROBERT STRAUSS RESIGNED THE CZECH PARLIAMENT ELECTED FORMER PLAYWRIGHT VACLAV HAVEL AS THE FIRST PRESIDENT OF THE NEWLY INDEPENDENT CZECH REPUBLIC HAVEL WHO LED CZECHOSLOVAKIA'S 1989 VELVET REVOLUTION AGAINST COMMUNISM DEFEATED TWO OPPONENTS HIS ELECTION WAS ASSURED LAST WEEK WHEN THE FOURPARTY GOVERNMENT COALITION NOMINATED HIM THE STATE DEPARTMENT DECLARED THAT ACTIVE DIPLOMACY WAS THE BEST WAY TO REVERSE ISRAEL'S EXPULSION OF SOME 400 PALESTINIANS TO SOUTHERN LEBANON EARLIER UN CHIEF BOUTROSGHALI RECOMMENDED THAT THE SECURITY COUNCIL TAKE WHATEVER MEASURES ARE REQUIRED TO FORCE THE ISRAELI GOVERNMENT TO TAKE BACK THE DEPORTEES THE CROATIAN ARMY PUSHED TO CONSOLIDATE ITS GAINS AGAINST SERB FORCES IN CROATIA DEFYING A UN RESOLUTION THREATENING SANCTIONS IF ATTACKS PERSIST RUSSIA ACCUSED CROATIA OF TAKING PROVOCATIVE ACTIONS WHILE FRANCE SAID IT WAS SENDING AN AIRCRAFT CARRIER AND SEVEN OTHER SHIPS TO THE ADRIATIC SEA FOR POSSIBLE INTERVENTION PARTISAN BICKERING BROKE OUT DURING THE FIRST HEARING OF A COMBINED HOUSESENATE REFORM COMMITTEE AS REPUBLICANS COMPLAINED TO HOUSE SPEAKER FOLEY THAT THEY WERE BEING BULLIED BY THE DEMOCRATS THE COMMITTEE IS PLANNING TO CONSIDER VARIOUS SUGGESTIONS FOR IMPROVING THE FEDERAL LEGISLATIVE AND BUDGET PROCESSES SOUTH AFRICA'S EDUCATION CHIEF ISSUED A REPUDIATION OF 40 YEARS OF RACIALLY SEGREGATED EDUCATION BUT SAID HE COULDN'T PROMISE TO BRING BLACK SCHOOLS UP TO WHITE STANDARDS BEFORE THE TURN OF THE CENTURY GOVERNMENT SPENDING ON EACH WHITE CHILD IS 42 TIMES THE AMOUNT FOR EACH BLACK CHILD CONTRASTED WITH AN 181 RATIO IN 1970 TWELVE ALLEGED COUP PLOTTERS WILL STAND TRIAL ON APRIL 14 A MOSCOW COURT OFFICIAL ANNOUNCED CAPPING MORE THAN A YEAR OF INVESTIGATION AND RECRIMINATIONS THE TRIAL COULD SHED LIGHT ON LINGERING QUESTIONS ABOUT THE FAILED 1991 SOVIET COUP INCLUDING ALLEGATIONS THAT THENPRESIDENT GORBACHEV KNEW ABOUT THE PLANS BEFOREHAND IRAQI TROOPS APPEAR TO BE RETURNING TO THEIR BARRACKS IN SOUTHERN IRAQ AFTER DISPERSING INTO THE FIELD DURING RECENT AIR ATTACKS BY ALLIED FORCES THE COMMANDER OF US FORCES IN KUWAIT SAID MEANWHILE UN MISSILE INSPECTORS BEGAN A LONGTERM MONITORING PROJECT AT AN UNDISCLOSED MILITARY FACILITY IN IRAQ NO SIGNIFICANT DATA HAVE BEEN UNEARTHED BY WESTERN INTELLIGENCE AGENCIES ABOUT IRAQI NUCLEAR ARMS FOR THE PAST EIGHT MONTHS WASHINGTON OFFICIALS SAID BUT THEY DISAGREE OVER THE LIKELY REASONS WITH SOME SAYING THAT UN INSPECTORS HAVE FOUND ALL THAT REMAINED OF THE PROGRAM AND OTHERS BELIEVING THAT IRAQ HAS HIDDEN WEAPONS 9301270046 930127 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 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 69 DAYS 310 70 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 320 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 316 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 277 THREE MONTHS 285 SIX MONTHS 305 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 302 60 DAYS 305 90 DAYS 307 120 DAYS 309 150 DAYS 315 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 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 763 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 25 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 765 60 DAYS 773 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 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 765 60 DAYS 774 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301270045 930127 BUSINESS BRIEF AH BELO CORP FOURTHPERIOD NET ROSE 89 HELPED BY RIVAL'S CLOSING AH BELO CORP SAID NET INCOME ROSE 89 IN THE FOURTH QUARTER TO 111 MILLION OR 56 CENTS A SHARE FROM 59 MILLION OR 31 CENTS A SHARE A YEAR EARLIER REVENUE AT THE DALLAS NEWSPAPER AND TELEVISION CONCERN ROSE 15 TO 1393 MILLION FROM 1214 MILLION MUCH OF THE EARNINGS GROWTH CAME AS A RESULT OF THE DECEMBER 1991 CLOSURE OF THE DALLAS TIMES HERALD WHICH COMPETED WITH BELO'S FLAGSHIP DALLAS MORNING NEWS BELO WHICH BOUGHT THE TIMES HERALD'S OPERATING ASSETS SAID AVERAGE CIRCULATION AT THE MORNING NEWS INCREASED 25 DAILY AND 30 ON SUNDAY DURING 1992 INCREASED AD RATES AND FAVORABLE NEWSPRINT PRICES ALSO CONTRIBUTED TO THE IMPROVEMENT FOR THE YEAR NET INCOME TRIPLED TO 372 MILLION OR 190 A SHARE FROM 124 MILLION OR 65 CENTS A SHARE REVENUE ROSE 20 TO 5159 MILLION FROM 4316 MILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BELO SHARES WERE QUOTED AT 42625 UP 625 CENTS 9301270044 930127 CORRECTIONS & AMPLIFICATIONS ABC TECHNOLOGIES INC EXPECTS ITS SALES TO INCREASE TO 3 MILLION THIS YEAR FROM 16 MILLION IN 1992 SAYS CHRIS PIEPER PRESIDENT AN ENTERPRISE ARTICLE JAN 6 INCORRECTLY GAVE PROJECTED 1993 SALES AS 16 MILLION 9301270043 930127 BUSINESS BRIEF CYPRUS MINERALS CO FIRM CUTS PRODUCTION COSTS SWINGS TO 4THQUARTER PROFIT CYPRUS MINERALS CO REPORTED FOURTHQUARTER PROFIT OF 142 MILLION OR 31 CENTS A SHARE REVERSING A YEAREARLIER LOSS OF 289 MILLION OR 83 CENTS A SHARE THE COMPANY CITED PROGRESS IN REDUCING COSTS FOURTHQUARTER REVENUE ROSE 64 TO 4077 MILLION FROM 3832 MILLION FOR THE YEAR THE DENVERBASED MINERAL RESOURCES EXPLORATION AND MINING COMPANY REPORTED A LOSS OF 3336 MILLION OR 846 A SHARE IT HAD NET INCOME OF 427 MILLION OR 72 CENTS A SHARE IN 1991 THE 1992 LOSS INCLUDED A TOTAL OF 4261 MILLION FOR WRITEDOWNS ACCOUNTING CHANGES AND REORGANIZATION EXPENSES EARNINGS BEFORE THE EXTRAORDINARY ITEMS ROSE ABOUT 24 THE RISE IN EARNINGS FROM OPERATIONS REFLECTS SUBSTANTIAL PROGRESS IN REDUCING OUR COSTS AND INCREASING PRODUCTIVITY SAID MILTON H WARD CYPRUS CHAIRMAN AND PRESIDENT COSTS OF PRODUCING COAL WERE CUT 150 A TON OVER THE YEAR AND A COMPANYWIDE PERSONNEL AND COSTREDUCTION PROGRAM IMPROVED PROFIT 9301270042 930127 LAW GRAND JURY HEARS TESTIMONY IN CASE OF INSIDER TRADING BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EDWARD R DOWNE JR A FORMER PUBLISHER WHO LAST YEAR ADMITTED TO BEING AT THE CENTER OF A HIGHSOCIETY INSIDERTRADING RING IS TESTIFYING BEFORE A FEDERAL GRAND JURY CONSIDERING WHETHER TO BRING CRIMINAL CHARGES AGAINST OTHERS WHO ALLEGEDLY WORKED WITH HIM COURT PAPERS REVEALED LITTLE IS KNOWN ABOUT EXACTLY WHAT MR DOWNE WHO PLEADED GUILTY TO TWO CRIMINAL CHARGES AND AGREED TO COOPERATE WITH PROSECUTORS IS TELLING THE GRAND JURY IN MANHATTAN LAWYERS INVOLVED WITH THE CASE SAID IT INVOLVES CHARGES OUTLINED IN A CIVIL COMPLAINT FILED IN JUNE BY THE SECURITIES AND EXCHANGE COMMISSION THAT COMPLAINT ACCUSED MR DOWNE AND SIX OTHER WEALTHY MEN OF SHARING INSIDE INFORMATION ABOUT SUCH COMPANIES AS BALLY MANUFACTURING CORP KIDDE INC BEAR STEARNS & CO AND EDGCOMB CORP ATTORNEYS FOR FINANCIAL PUBLICRELATIONS EXECUTIVE STEVEN A GREENBERG A CODEFENDANT WITH MR DOWNE IN THE SEC CASE HAVE BEEN TRYING TO INTERVIEW MR DOWNE AS PART OF THEIR FACTFINDING IN THE SEC CASE AN INDIVIDUAL FAMILIAR WITH THE CASE SAID THAT QUESTIONING MR DOWNE IN A DEPOSITION WOULD HELP THE ATTORNEYS ASSESS THE STRENGTH OF HIS TESTIMONY AGAINST MR GREENBERG AND THE LIKELIHOOD OF A CRIMINAL INDICTMENT MR GREENBERG'S LAWYER HARVEY L PITT OF FRIED FRANK HARRIS SHRIVER & JACOBSON DECLINED TO COMMENT FEDERAL PROSECUTORS TOOK THE UNUSUAL STEP OF INTERVENING IN THE SEC CASE TO OPPOSE ANY QUESTIONING OF MR DOWNE BY THE OTHER DEFENDANTS IN COURT DOCUMENTS PROSECUTORS TOLD FEDERAL JUDGE PETER K LEISURE THAT MR DOWNE THE HUSBAND OF AUTOMOBILE HEIRESS CHARLOTTE FORD IS TESTIFYING BEFORE THE GRAND JURY MILTON WEINGER MR DOWNE'S BROKER AT OPPENHEIMER & CO AND A CODEFENDANT IN THE SEC SUIT ALSO HAS PLEADED GUILTY TO CRIMINAL CHARGES IN THE CASE JUDGE LEISURE BACKED THE PROSECUTORS' REQUEST ON THE QUESTIONING OF MR DOWNE AND PUT OFF THE SEC CASE PENDING THE GRAND JURY DELIBERATIONS HIS ORDER DELAYS ANY FACTFINDING IN THE CIVIL CASE INCLUDING THE QUESTIONING OF MR DOWNE BY THE OTHER DEFENDANTS 9301270041 930127 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL MEDICAID STRAINS PROMPT MANY STATES TO BROADEN TAXES ON HEALTH CARE THE MORE THAT STATES SPEND ON MEDICAID THE MORE THEY GET IN FEDERAL MATCHING FUNDS AND WHAT BETTER SOURCES OF STATE REVENUE FOR MEDICAID SPENDING THAN HOSPITALS NURSING HOMES AND OTHER CARE PROVIDERS OVER A DOZEN STATES ENACTED RAISED OR BROADENED HEALTHCARE TAXES IN 1992 FOR ONE THING NOTES LARRY FEE OF DELOITTE & TOUCHE CPAS STATES HAD TO SATISFY NEW US LAW REQUIRING SUCH TAXES TO APPLY UNIFORMLY NOT JUST TO PROVIDERS OF MEDICAID CARE TO THE POOR LAST MONTH ARKANSAS BECAME THE LATEST TO LEVY HEALTHCARE TAXES MORE STATE BUDGET PROPOSALS INCLUDE THEM IN FISCAL 1992 SAYS THE NATIONAL CONFERENCE OF STATE LEGISLATURES STATES' GENERALFUND SPENDING GREW BY 56 INSTEAD OF AN EXPECTED 49 OWING MAINLY TO MEDICAID IN FISCAL 1993 STATES' MEDICAID SPENDING IS EXPECTED TO RISE BY 62 TO 402 BILLION WELL UNDER INCREASE RATES OF RECENT YEARS BUT OVER TWICE THE 3 RISE IN EXPECTED GENERALFUND SPENDING IF CARE COSTS AREN'T RESTRAINED THE NCSL SAYS STATES WILL CONTINUE TO STRUGGLE WITH MEDICAID BUDGETS ELECTRONICFILING SCAMS OFTEN DEPEND ON FIRSTTIME FILERS AS ELECTRONIC FILING BOOMS SO DOES REFUND FRAUD BEEFEDUP IRS METHODS DETECTED 11082 PHONY ELECTRONIC REFUND CLAIMS IN 1992'S FIRST SEVEN MONTHS UP FROM 5746 IN ALL OF 1991 BUT THE TRUE NUMBER MAY BE FAR HIGHER THE GENERAL ACCOUNTING OFFICE SAYS BECAUSE MANY SCAMS INVOLVE PURPORTED FIRSTTIME FILERS IT RECOMMENDS AND THE IRS AGREES THAT ALL FIRSTTIMERS' ELECTRONIC RETURNS BE TREATED AS QUESTIONABLE UNTIL THE IRS ESTABLISHES THE RETURNS' VALIDITY THE IRS AGREES WITH THE GAO THAT FILERS SHOULD SHOW TWO TYPES OF IDENTIFICATION ONE WITH A PHOTO TO ELECTRONICRETURN PREPARERS AND PLANS TO REQUIRE THAT IN 1994 BUT THE IRS DISAGREES THAT IT SHOULD DELAY REFUNDS UNTIL IT MATCHES ELECTRONIC RETURNS WITH THE SIGNATURE PAPERS IT RECEIVES LATER BY MAIL THAT WOULD THWART THE IRS'S SELLING POINT FOR FILING BY WIRE FAST REFUNDS HIGHINCOME FILERS WHO GOT STATE REFUNDS IN 1992 MAY GET AN IRS BREAK NOW YOU MUST REPORT STATE AND LOCAL TAX REFUNDS AS INCOME ON A FEDERAL RETURN ONLY TO THE EXTENT THAT YOU BENEFITED PREVIOUSLY BY ITEMIZING AS DEDUCTIONS THE TAXES YOU PAID FIGURING THE TAXABLE PART OF REFUNDS ALWAYS WAS COMPLEX NOW IT IS MORE EXASPERATING FOR PEOPLE WHOSE ADJUSTED GROSS INCOME EXCEEDS 100000 THAT'S BECAUSE THE BENEFITS OF SOME DEDUCTIONS INCLUDING STATE AND LOCAL TAXES ARE PHASED OUT AS INCOME RISES SO HOW DO YOU WORK OUT A REFUND'S TAX EFFECTS TO FIND OUT SAYS ROBERT COPLAN OF ERNST & YOUNG CPAS YOU MUST TURN TO A WORKSHEET ON PAGE 18 OF TAXABLE AND NONTAXABLE INCOME IRS PUBLICATION 525 IT PRORATES DEDUCTIONS ERASED BY THE PHASEOUT TO SHOW THE TAXFREE PART OF A REFUND THE METHOD IS FAIR COPLAN SAYS BUT BEWARE THE WORKSHEET LEADS TO ANOTHER WORKSHEET AND THE INSTRUCTIONS CAN BE MINDBOGGLING A SEPARATE CALCULATION IS NEEDED IF YOU RECOVER AMOUNTS DEDUCTED FOR OTHER ITEMS SUBJECT TO THE PHASEOUT SUCH AS MORTGAGE INTEREST OR MOVING EXPENSES CAREER CIVIL SERVANTS WILL HEAD THE IRS TEMPORARILY UNTIL THE CLINTON ADMINISTRATION PICKS ITS OWN OFFICIALS MICHAEL DOLAN THE DEPUTY COMMISSIONER IS SERVING AS ACTING COMMISSIONER AND DAVID JORDAN THE DEPUTY CHIEF COUNSEL IS NOW THE ACTING CHIEF COUNSEL THE MAXIMUM PAYMENT INTO A 401K RETIREMENT PLAN ALLOWED IN 1993 RISES TO 8994 FROM 8728 IN 1992 IRS INFORMATION RELEASE IR 932 SAYS ADJUSTMENTS FOR INFLATION ALSO RAISE THE MAXIMUM ANNUAL AMOUNT THAT MAY BE WITHDRAWN FROM A DEFINEDBENEFIT PENSION PLAN TO 115641 FROM 112221 TENNESSEE'S DEMAND THAT BLOOMINGDALE'S BY MAIL COLLECT STATE SALES TAXES ON MAILORDER BUSINESS WAS STRUCK DOWN BY THE STATE'S SUPREME COURT THE RULING HAD BEEN EXPECTED SINCE THE US SUPREME COURT HELD LAST MAY THAT SUCH STATE LAWS ARE UNCONSTITUTIONAL BUT THE TENNESSEE COURT ALSO ORDERED THAT STATE TO PAY LEGAL FEES UNDER FEDERAL RULES MORE GENEROUS THAN STATE LAW CALIFORNIA STRUGGLES TO PAY HUGE SALESTAX REFUNDS TO FEDERAL CONTRACTORS THE AILING STATE STILL HASN'T WORKED OUT A WAY TO REPAY OVER 800 MILLION TO DEFENSE CONTRACTORS WHO IN TURN OWE THE MONEY TO THE US GOVERNMENT STATE COURTS RULED IN 1990 THAT CALIFORNIA HAD WRONGLY COLLECTED SALES TAXES ON SUPPLIES BOUGHT BY COMPANIES IN CONNECTION WITH FEDERAL CONTRACTS THE CONTRACTORS PASSED ON THE TAX COSTS TO THE US BUT THE STATE JUDGES SAID THE SUPPLIES SHOULD NEVER HAVE BEEN TAXED BECAUSE THEY BELONG TO THE US WHICH IS EXEMPT FROM STATE TAXES THE STATE HOPED TO MAKE A LENIENT 10YEAR REPAYMENT DEAL WITH THE US TREASURY BEFORE PRESIDENT BUSH LEFT OFFICE BUT DIDN'T SUCCEED NOW CALIFORNIA FEARS GOV WILSON A REPUBLICAN MAY GET A FROSTY RECEPTION FROM THE DEMOCRAT TREASURY THE CHAIRMAN OF THE STATE BOARD OF EQUALIZATION BRAD SHERMAN SAYS IT IS TRYING TO REACH AGREEMENT WITH CONTRACTORS BEFORE APPROACHING THE CLINTON ADMINISTRATION MEANWHILE INTEREST OWED ON THE UNPAID REFUNDS CONTINUES TO MOUNT BRIEFS JAMES BRUTON PLANS TO RETURN TO THE LAW FIRM WILLIAMS & CONNOLLY FROM HIS POST AS ACTING ASSISTANT ATTORNEY GENERAL FOR TAX MATTERS JAY LENO ON PRESIDENT CLINTON'S PROPOSED CONSUMPTION TAX HOW WOULD HE LIKE IT IF WE RAISED HIS TAXES ON BIG MACS UGLY JOGGING SHORTS AND OUTOFTUNE SAXOPHONES 9301270040 930127 MCDONNELL GOT IMPROPER AID REPORT FINDS US PAYMENT SAID TO BE BID TO HIDE FUNDING WOES SEC INQUIRY IS SOUGHT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BELIEVING THAT MCDONNELL DOUGLAS CORP THE US'S LARGEST DEFENSE CONTRACTOR WAS ON THE VERGE OF BANKRUPTCY THE AIR FORCE IN 1990 IMPROPERLY BOOSTED THE COMPANY'S CASH POSITION PARTLY TO HELP IT OBTAIN PRIVATE FINANCING ACCORDING TO A DEFENSE DEPARTMENT INVESTIGATION CONCERNED THAT THE REPORT RAISES QUESTIONS ABOUT THE ACCURACY OF THE COMPANY'S FINANCIAL DISCLOSURES REP JOHN CONYERS AND REP JOHN DINGELL ASKED THE SECURITIES AND EXCHANGE COMMISSION TO INVESTIGATE REP DINGELL WHO IS CHAIRMAN OF THE HOUSE COMMITTEE THAT OVERSEES THE AGENCY ALSO SAID THE SEC ALREADY IS LOOKING INTO THE COMPANY'S PAST STATEMENTS IN A LETTER TO THE SEC REP DINGELL SAID THE AGENCY HAS INVESTIGATIONS OF MCDONNELL DOUGLAS UNDER WAY INCLUDING AN INVESTIGATION OF THE COMPANY'S HANDLING OF A HALFBILLION DOLLAR LOSS ON THE NAVY'S TERMINATED A12 AIRCRAFT PROGRAM AS WELL AS OTHER DISCLOSURE PROBLEMS A MCDONNELL DOUGLAS SPOKESMAN SAID THE SEC HAD INQUIRED ABOUT SUCH ISSUES IN 1991 AND WE RESPONDED FULLY AND THERE WERE NO FURTHER INQUIRIES THE SPOKESMAN SAID HE THOUGHT THE SEC INQUIRY HAD BEEN DISCLOSED PREVIOUSLY THE PENTAGON INSPECTOR GENERAL'S CONCLUSIONS HAVE BEEN EXPECTED SINCE MAY WHEN HE ACCUSED THE AIR FORCE OF PROVIDING EXTRAORDINARY FINANCIAL ASSISTANCE TO THE COMPANY AND THEN HIDING THE FACT THE AMOUNTS OF MONEY BEING DISCUSSED HOWEVER WERE THOUGHT TO BE SMALLER THE REPORT SAID THAT THE AIR FORCE WORKING WITH COMPANY OFFICIALS MADE 442 MILLION IN PAYMENTS THAT TEMPORARILY MASKED THE ACTUAL FINANCIAL CONDITION OF MCDONNELL DOUGLAS THE 106PAGE REPORT WAS DELIVERED TO THE AIR FORCE THIS MONTH AND WAS RELEASED YESTERDAY BY REP CONYERS CHAIRMAN OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE IMPROPER CONTRACTING ACTIONS CREATED A FALSE APPEARANCE OF SUCCESS TO FACILITATE BOTH THE CONTRACTOR OBTAINING ADDITIONAL FINANCING THROUGH COMMERCIAL SOURCES AND ISSUANCE OF DEBT SECURITIES AND THE AIR FORCE SECURING ADDITIONAL FUNDING FROM CONGRESS THE REPORT SAID REP CONYERS ALSO SENT A LETTER TO DEFENSE SECRETARY LES ASPIN ASKING HIM TO SUSPEND MCDONNELL DOUGLAS'S PROGRAM TO BUILD THE C17 MILITARY CARGO JET THE INSPECTOR GENERAL'S REPORT FOCUSES ON PAYMENTS RELATED TO THE C17 A COMPANY SPOKESMAN SAID OUR POSITION HAS BEEN AND CONTINUES TO BE THAT MCDONNELL PERFORMED THE WORK REQUIRED UNDER THE CONTRACT AND PEOPLE SUBMITTED THE BILLS IN ACCORDANCE WITH ITS AGREEMENTS WITH THE AIR FORCE AND WITH DEFENSE DEPARTMENT ACCOUNTING RULES THE SPOKESMAN ALSO SAID THE COMPANY BELIEVES IT HAS PROPERLY DISCLOSED INFORMATION RELATIVE TO THE C17 PROGRAM THE AIR FORCE STOOD BY THE STATEMENT IT ISSUED WHEN NEWS OF THE REPORT FIRST SURFACED ABOUT TWO WEEKS AGO SAYING THE REPORT READDRESSES MATTERS WITH WHICH WE'VE TAKEN ISSUE BEFORE TWO WEEKS AGO THE AIR FORCE SAID IT INTENDED TO CONDUCT ITS OWN REVIEW OF THE INSPECTOR GENERAL'S FINDINGS BUT AN AIR FORCE SPOKESMAN SAID YESTERDAY THAT THE REVIEW WOULD NOW BE CONDUCTED IN CONJUNCTION WITH THE OFFICE OF THE DEFENSE SECRETARY MCDONNELL DOUGLAS HAD DELAYED THE RELEASE OF THE REPORT BY ARGUING THAT IT CONTAINED PROPRIETARY FINANCIAL INFORMATION IN THE VERSION RELEASED BY THE GOVERNMENT OPERATIONS PANEL SEVERAL PARAGRAPHS AND SENTENCES ARE BLACKED OUT NONETHELESS WHAT REMAINS LEGIBLE DEPICTS AN EXTRAORDINARY SITUATION AT MCDONNELL DOUGLAS IN 1990 ACCORDING TO THE REPORT MARK ZENTHOEFER A DEFENSE DEPARTMENT FINANCIAL OFFICIAL SAID THAT AT A SEPTEMBER 1990 MEETING DARLEEN DRUYUN AN AIR FORCE CONTRACTING OFFICIAL WAS VERY DIRECT IN STATING THAT SHE HAD SEEN DATA IN ST LOUIS THAT INDICATED THEY HAD A SEVERE FINANCIAL PROBLEM THAT THE COMPANY WAS ON THE VERGE OF BANKRUPTCY AND THAT WE SHOULD IMMEDIATELY MAKE ANY PAYMENTS WE COULD AT THAT MEETING MR ZENTHOEFER CONTINUED THE FOCUS WAS TO GET CASH AND WHEN REGULATIONS WERE BROUGHT UP THAT PREVENTED US FROM DOING THAT THEN THE FOCUS BECAME HOW CAN WE GET AROUND THE REGULATION OR GET A WAIVER TO THE REGULATION GOVERNMENT OVERSIGHT AND INTERNAL MANAGEMENT CONTROLS THAT MIGHT HAVE DETECTED SOME OF THE ACTIONS IN QUESTION WERE IMPAIRED BY AIR FORCE OFFICIALS THE REPORT ALLEGED THESE OFFICIALS PROVIDED INCOMPLETE AND MISLEADING INFORMATION AND IN SOME CASES RELIED ON INTIMIDATION AND ABUSE OF THEIR POSITIONS OF RESPONSIBILITY TO CAUSE IMPROPER ACTIONS TO BE TAKEN THE REPORT SAID MOREOVER THE INSPECTOR GENERAL TOOK THE UNUSUAL STEP OF RECOMMENDING DISCIPLINARY ACTION AGAINST THREE AIR FORCE GENERALS AND TWO CIVILIAN EMPLOYEES THEY ARE LT GEN EDWARD P BARRY THE FORMER C17 PROGRAM EXECUTIVE OFFICER MAJ GEN MICHAEL BUTCHKO THE FORMER C17 SYSTEM PROGRAM DIRECTOR BRIG GEN JOHN NAUSEEF FORMER DEPUTY COMPTROLLER FOR THE AIR FORCE SYSTEMS COMMAND ALBERT HIXENBAUGH DEPUTY DIRECTOR OF CONTRACTING FOR THE C17 PROGRAM AND MS DRUYUN FORMER DEPUTY CHIEF OF STAFF FOR CONTRACTING AT THE AIR FORCE SYSTEMS COMMAND JEFF COLE IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9301270039 930127 MARKETING BRIEF SPELLING ENTERTAINMENT GROUP INC LATIN AMERICAN TV CHANNEL PLANNED WITH MEXICAN FIRM SPELLING ENTERTAINMENT GROUP INC SAID IT AND MEXICO'S MULTIVISION PLAN TO LAUNCH A NEW TELEVISION CHANNEL THAT WILL BROADCAST ROUNDTHECLOCK IN SPANISH AND PORTUGUESE THROUGHOUT LATIN AMERICA THE MEXICO CITYBASED CHANNEL TELEUNO WILL BEGIN SERVICE MARCH 1 PROGRAMMING WILL INCLUDE SHOWS FROM SPELLING'S LIBRARY OF TV SERIES AND FEATURE FILMS RONALD LIGHTSTONE CHIEF OPERATING OFFICER OF SPELLING'S SPELLING ENTERTAINMENT INC UNIT SAID CHANNEL IS AN EQUALLY OWNED JOINT VENTURE MULTIVISION OPERATES 17 CHANNELS IN MEXICO CITY OF WHICH FIVE ARE BROADCAST BY SATELLITE THROUGHOUT MEXICO AN EXISTING MEXICO CITY CHANNEL WILL BE CONVERTED TO TELEUNO SAID ERNESTO VARGAS MULTIVISION VICE PRESIDENT ADDITIONAL CAPITAL INVESTMENT IS NEEDED TO EXPAND THE CHANNEL'S REACH THROUGHOUT LATIN AMERICA SEPARATELY LOS ANGELESBASED SPELLING ANNOUNCED THE CREATION OF A NEW SUBSIDIARY SPELLING SATELLITE NETWORKS INC TO DEVELOP AND LAUNCH CABLE NETWORKS WORLDWIDE THE MULTIVISION VENTURE IS THE NEW SUBSIDIARY'S FIRST CABLE CHANNEL 9301270038 930127 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE POVERTY ROLLS IN THE US NEWLY SINGLE MOTHERS MAY HAVE THE HIGHEST POVERTY RATES IN THE POPULATION BUT UNCHANGED FAMILIES MAKE UP THE GREAT MAJORITY OF HOUSEHOLDS THAT BECOME POOR DURING A GIVEN YEAR OF THE 144 MILLION HOUSEHOLDS THAT BECAME POOR DURING ANY ONEYEAR PERIOD BETWEEN 1983 AND 1988 32 SAW THEIR FAMILY STATUS CHANGE DURING THAT YEAR THROUGH MARRIAGE DIVORCE DEATH OR OTHER REASONS THE OTHER 68 STAYED AS THEY HAD BEEN BEFORE POVERTY STRUCK ACCORDING TO A CENSUS BUREAU STUDY NEARLY HALF OF UNCHANGED FAMILIES THAT ENTERED POVERTY OR 32 OF THE NEWLY POOR WERE MARRIED COUPLES IN NEARLY TWOTHIRDS OF THE MARRIED COUPLES ONE OR BOTH SPOUSES WERE WORKING LESS THAN BEFORE ABOUT 37 OF THE COUPLES SAW AN INCREASE IN ONE SPOUSE'S WORK HOURS AND A DECREASE IN THE OTHER'S THIS COULD HAPPEN IF A HUSBAND LOST A JOB AND HIS WIFE TRIED TO MAKE UP FOR IT BY WORKING MORE HOURS AT A LOWERPAYING JOB ABOUT 38 OF THE COUPLES ENTERED POVERTY WITHOUT ANY CHANGE IN WORK HOURS BY THE HUSBAND OR WIFE SOME OF THESE SPOUSES WORKED THE SAME HOURS BUT FOR LESS PAY SOME FAMILIES HAD ADDITIONAL EARNERS WHO LOST JOBS OR INCOME AND OTHER FAMILIES ADDED MEMBERS WITHOUT ADDING INCOME WHILE 11 OF POOR HOUSEHOLDS WERE HEADED BY NEWLY SINGLE WOMEN UNCHANGED FAMILIES HEADED BY WOMEN MADE UP ANOTHER 12 OF THE TOTAL MORE THAN HALF OF THOSE FAMILIES BECAME POOR WITHOUT ANY CHANGE IN THE WOMEN'S WORK HOURS THE OFFICE OF MANAGEMENT AND BUDGET HAS WIPED LONG ISLAND AND NORTHERN NEW JERSEY OFF THE MAP BY REVOKING THEIR METROPOLITAN STATUSES A MOVE THAT COULD HURT THOSE AREAS FINANCIALLY THE OMB REEVALUATES THE GOVERNMENT'S METROPOLITAN CLASSIFICATION SYSTEM EVERY 10 YEARS AFTER EACH CENSUS MOST CHANGES INVOLVE ADDING AREAS THAT HAVE BECOME BIG ENOUGH TO QUALIFY AS METRO AREAS AND ADDING COUNTIES TO EXISTING AREAS LESS FREQUENTLY CITIES COUNTIES OR EVEN ENTIRE METRO AREAS THAT HAVE DECLINED IN SIZE HAVE BEEN DEMOTED TO NONMETRO STATUS THIS TIME AROUND THOUGH THE OMB MADE MORE DRASTIC CHANGES A NUMBER OF METRO AREAS ESPECIALLY IN THE NORTHEAST ARE ADJACENT TO ONE ANOTHER WHEN THIS HAPPENS THEY ARE CALLED PRIMARY METROPOLITAN STATISTICAL AREAS OR PMSAS THAT ALL BELONG TO A LARGER CONSOLIDATED METROPOLITAN STATISTICAL AREA OR CMSA IN 1983 THE LAST TIME THE SYSTEM WAS REVAMPED THE NEW YORKNORTHERN NEW JERSEYLONG ISLAND CMSA INCLUDED A NEW YORK PMSA MADE UP OF THE CITY'S FIVE BOROUGHS AND PUTNAM ROCKLAND AND WESTCHESTER COUNTIES IN NEW YORK STATE AND 11 PMSAS IN NEW YORK STATE NEW JERSEY LONG ISLAND AND CONNECTICUT NOW NASSAUSUFFOLK BERGENPASSAIC JERSEY CITY NEWARK MIDDLESEXSOMERSETHUNTERDON AND MONMOUTHOCEAN HAVE LOST THEIR PMSA STATUS AND BEEN PLACED IN THE NEW NEW YORKNEWARK PMSA THE LARGEST IN THE US WITH 17 MILLION PEOPLE OMB SAID THERE WASN'T ENOUGH LOCAL SUPPORT IN THE FORMER PMSAS TO MAINTAIN THEIR INDEPENDENT STATUS TRENTON WAS THE ONLY NEW JERSEY METRO AREA IN THE NEW YORK CMSA TO REMAIN A PMSA ALL FOUR CONNECTICUT AREAS ARE STILL PMSAS BRIDGEPORT DANBURY NEW HAVENMERIDEN AND STAMFORDNORWALK SO ARE DUTCHESS AND ORANGE COUNTIES IN NEW YORK IN CHANGES ELSEWHERE THE BOSTON PMSA IS MUCH BIGGER NOW BECAUSE IT INCORPORATED EIGHT FORMER PMSAS AND THE WASHINGTON AND BALTIMORE AREAS ARE NOW LINKED AS A CMSA METRO STATUS IS NOT ONLY PRESTIGIOUS IT MEANS MONEY SOME FORMER PMSAS COULD SUFFER FINANCIALLY BECAUSE SOME US PROGRAMS DISTRIBUTE FUNDS BASED ON AVERAGE INCOME FOR AN ENTIRE METRO AREA POOR AREAS ABSORBED INTO AFFLUENT AREAS COULD CAUSE THE FORMER TO GET LESS AID THE US HAD MORE THAN 11 MILLION INTERRACIAL MARRIED COUPLES IN 1991 UP SEVEN TIMES FROM 157000 IN 1960 THE CENSUS BUREAU SAYS THE CHILDREN OF THESE COUPLES POSE A CHALLENGE TO THOSE WHO WOULD CLASSIFY THEM BEFORE 1989 THE NATIONAL CENTER FOR HEALTH STATISTICS TABULATED THE RACES OF CHILDREN BORN IN THE US FROM DATA ABOUT THE PARENTS' RACES ON BIRTH CERTIFICATES A CHILD BORN TO A WHITE AND A MINORITY PARENT WAS ASSIGNED THE MINORITY RACE IF NEITHER PARENT WAS WHITE THE CHILD WAS ASSIGNED THE FATHER'S RACE IN 1989 THE NCHS STOPPED LOOKING AT THE FATHER'S RACE AND ASSIGNED THE MOTHER'S RACE TO THE CHILD THIS MAKES SENSE BECAUSE 13 TO 15 OF BIRTH CERTIFICATES HAVE NO DATA ABOUT FATHERS AT ALL THE SHARE IS MUCH HIGHER FOR CHILDREN OF BLACK MOTHERS HOWEVER IT AVOIDS THE PROBLEM OF DESIGNATING A CHILD'S RACE SOMETHING THAT CONCERNS DEMOGRAPHERS AND OTHERS INTERESTED IN TRACKING AMERICA'S GROWING DIVERSITY CLAUDETTE BENNETT AND J GREGORY ROBINSON OF THE CENSUS BUREAU LOOKED AT DECENNIAL CENSUS DATA TO LEARN HOW MIXEDRACE COUPLES HAVE CHOSEN TO IDENTIFY THEIR CHILDREN IN THE 1980 CENSUS 66 OF CHILDREN WITH ONE BLACK AND ONE WHITE PARENT WERE LISTED AS BLACK 56 OF AMERICAN INDIAN/WHITES WERE LISTED AS AMERICAN INDIAN AND JUST 35 OF ASIAN/WHITES WERE LISTED AS ASIAN SOME PEOPLE WRITE IN MIXEDRACE RESPONSES FOR THEMSELVES OR THEIR CHILDREN BUT CURRENT CENSUS PRACTICE IS TO CODE ONLY THE FIRST RACE MENTIONED THIS MAY CHANGE IN THE FUTURE AS THE NUMBER OF INTERRACIAL MARRIAGES AND CHILDREN GROWS ELEVEN PERCENT OF EMPLOYERS PROVIDE DIRECT CHILDCARE BENEFITS SUCH AS EMPLOYERSPONSORED DAY CARE ASSISTANCE WITH CHILDCARE EXPENSES AND REFERRALS ACCORDING TO A 1990 NATIONAL CHILD CARE SURVEY CONDUCTED BY THE URBAN INSTITUTE IN WASHINGTON ABOUT 61 OFFER FLEXTIME JOB SHARING OR OTHER POLICIES THAT HELP PARENTS TAKE CARE OF CHILDREN ABOUT 35 OF AMERICANS SPENT MORE THAN THEY PLANNED ON CHRISTMAS GIFTS SAYS MARITZ MARKETING RESEARCH OF FENTON MO 9301270037 930127 ENTERPRISE MORE BLACK CHURCHES GO INTO BUSINESS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ENTREPRENEURS SEEM TO BE ABANDONING INNERCITY NEIGHBORHOODS BUT BLACK CHURCHES ARE INVESTING MORE HEAVILY THAN EVER THERE OPENING BUSINESSES TO HELP REVITALIZE THEIR STRUGGLING COMMUNITIES CHURCHES ARE CLEARLY BECOMING MORE INVOLVED IN ECONOMIC DEVELOPMENT SAYS DR GLADYS LYLESGRAY A PROFESSOR OF SOCIOLOGY AT TUSKEGEE UNIVERSITY IN ALABAMA THERE ARE TOO MANY PROBLEMS IN THE BLACK COMMUNITY FOR CHURCHES TO BE ISOLATED THE BLACK CHURCH HAS ALWAYS BEEN A FORCE IN THE ECONOMIC DEVELOPMENT OF INNERCITY NEIGHBORHOODS DR LYLESGRAY NOTES BUT SHE SAYS CHURCHES ARE TAKING ON INCREASINGLY AMBITIOUS AND CREATIVE VENTURES AS THE NEED FOR COMMUNITY DEVELOPMENT GROWS AND BLACK CONGREGATIONS BECOME MORE BUSINESS SAVVY NEW SUNNY MOUNT BAPTIST CHURCH IN ST LOUIS HAS CREATED 15 JOBS IN ITS STRUGGLING COMMUNITY THE CHURCH OWNS A BUS RENTAL COMPANY AND A PARKING LOT THAT IT LEASES TO SCHOOLS AND BUSINESSES IT ALSO OWNS A 328ACRE RETREAT THAT IT RENTS TO VARIOUS GROUPS IN CHICAGO CHRIST UNIVERSAL TEMPLE OWNS A LARGE BANQUET FACILITY THAT IT RENTS TO BUSINESSES SCHOOLS AND OTHERS THE CHURCH IS ALSO BUILDING A SCHOOL AND A BOOKSTORE WE BELIEVE THAT BEING A SPIRITBASED INDIVIDUAL MEANS YOU HAVE THE RESPONSIBILITY TO IMPROVE THE QUALITY OF LIFE FOR PEOPLE IN GENERAL SAYS JOE HILL A PASTOR AND THE CHURCH'S CHIEF OPERATING OFFICER THE EFFORT AT GREATER CHRIST TEMPLE CHURCH IN MERIDIAN MISS DATES BACK TO 1977 WHEN BISHOP LUKE EDWARDS GATHERED HIS 200MEMBER CONGREGATION TO DISCUSS SALVAGING HIS PARISHIONERS' PRIDE AND THEIR DECAYING COMMUNITY THE BISHOP'S TASK WAS FORMIDABLE BACK THEN 96 OF THE GREATER CHRIST TEMPLE CHURCH CONGREGATION WAS ON WELFARE I TALKED TO THEM ABOUT HELPING THEMSELVES SAYS BISHOP EDWARDS THE CHURCH'S PASTOR FOR 20 YEARS I SHOWED THE CONGREGATION THAT THEY HAVE THE BUYING POWER TO DELIVER THEMSELVES IF THEY SPEND THEIR MONEY RIGHT BISHOP EDWARDS COMBINED CHURCH MEMBERS' FOOD STAMPS AND PURCHASED ITEMS FROM A WHOLESALE GROCER THE CHURCH THEN BEGAN RUNNING A GROCERY STORE OUT OF ITS AUDITORIUM AFTER FOUR MONTHS THE MEMBERS HAD EARNED ENOUGH MONEY TO PURCHASE A SUPERMARKET TODAY THE CHURCH OWNS A 4000ACRE FARM SEVEN TRACTORS HUNDREDS OF CATTLE TWO MEAT PROCESSING PLANTS A BAKERY THREE RESTAURANTS AND AN AUTO REPAIR SHOP IT HAS EXPANDED ITS MINISTRY TO ALABAMA AND NONE OF ITS MEMBERS ARE ON WELFARE BECAUSE THEY HAVE BEEN GIVEN JOBS BY THE CHURCH BLACK CHURCHES WOULD OWN MORE BUSINESSES IF BANKS WERE LESS HESITANT ABOUT LENDING THEM MONEY SAYS JOHN W HANDY CHAIRMAN OF ECONOMICS AT MOREHOUSE COLLEGE IN ATLANTA CHURCHES HAVE THE SAME PROBLEM THAT ALL BLACK ENTREPRENEURS HAVE FINANCING IS LIMITED HE SAYS BUT BANK FINANCING ISN'T THE ONLY PROBLEM CONFRONTING BLACK CHURCHES WHEN THEY UNDERTAKE ENTREPRENEURIAL VENTURES MANY PASTORS FIND THAT CERTAIN MEMBERS DON'T WANT THEM TO JOURNEY BEYOND THE SPIRITUAL ARENA TO OPERATE FORPROFIT COMPANIES THERE ARE MEMBERS WHO DON'T BELIEVE THE CHURCH SHOULD OPERATE MONEYMAKING VENTURES SAYS MR HILL HE SAYS A FEW MEMBERS HAVE LEFT CHRIST UNIVERSAL TEMPLE OVER THE ISSUE ADDITIONALLY CHURCHES AREN'T GRANTED TAXEXEMPT STATUS ON COMPANIES THEY OWN THAT DON'T RELATE TO THEIR RELIGIOUS WORK FOR INSTANCE A BOOKSTORE SELLING RELIGIOUS LITERATURE WOULD BE TAX EXEMPT BUT A GROCERY STORE WOULDN'T BE STILL A GROWING NUMBER OF PASTORS ARE BECOMING ENTREPRENEURS LARGELY OUT OF DESPERATION TO REBUILD THEIR COMMUNITIES AND THE LIVES OF THEIR MEMBERS BISHOP EDWARDS FOR EXAMPLE SAYS IT WAS HIS RESPONSIBILITY NOT THE GOVERNMENT'S TO WEAN HIS CONGREGATION FROM WELFARE AND EVEN THOUGH SOME MEMBERS WERE SKEPTICAL AT FIRST THEY WARMED UP TO HIS PLAN ONCE THEY SAW RESULTS EVENTUALLY PEOPLE FROM OTHER STATES BEGAN MOVING TO ALABAMA AND MISSISSIPPI TO WORK FOR THE CHURCH DENISE CHAPMAN WORKS IN ALABAMA AS AN OFFICE ADMINISTRATOR AND RESTAURANT MANAGER FOR THE CHURCH SHE HEARD ABOUT BISHOP EDWARDS'S SELFHELP PROGRAM WHEN SHE LIVED IN MICHIGAN ON WELFARE MORE THAN A DECADE AGO SHE SAYS SHE MOVED LARGELY TO IMPROVE THE LIFE OF HER SON I USED TO SMOKE DOPE SHE SAYS HE COULD HAVE BEEN INTRODUCED TO THAT INSTEAD THE CHURCH IS PROVIDING HIM WITH VOCATIONAL TRAINING IN FARMING TEACHING HIM SUCH THINGS AS HOW TO ARTIFICIALLY INSEMINATE COWS GREATER CHRIST TEMPLE USES THE PROFITS FROM ITS BUSINESSES TO INVEST IN OTHER VENTURES IT OWNS SEVERAL DORMITORIES WHERE MOST CHURCH MEMBERS LIVE YOUNG PEOPLE WHO HAVE PROBLEMS AT HOME OR WHO HAVE BEEN IN TROUBLE WITH THE LAW ALSO LIVE THERE THE CHURCH OPERATES OFFICE BUILDINGS A COMPUTER ROOM A NURSERY A CAFETERIA A MEDICAL CLINIC A LIBRARY A MACHINE SHOP AND A SCHOOL IN SHORT IT HAS CREATED ITS OWN COMMUNITY MOST MEMBERS OF HARTFORD MEMORIAL BAPTIST CHURCH ON DETROIT'S NORTHWEST SIDE AREN'T ON WELFARE IN FACT MANY ARE DOCTORS LAWYERS ACCOUNTANTS AND TEACHERS HARTFORD'S PASTOR THE REV CHARLES ADAMS WAS CONFRONTED BY A CHALLENGE DIFFERENT FROM THE ONE THAT FACED BISHOP EDWARDS A DECADE AGO HIS SPRAWLING CHURCH WAS SURROUNDED BY BOTTLESTREWN DIRT LOTS ABANDONED BUILDINGS DRUG HOUSES AND PLOTS OF WILDLY GROWING GRASS TODAY HOWEVER THE NEIGHBORHOOD IS BUSTLING WITH ACTIVITY NUMEROUS SHOPS LINE THE MAIN THOROUGHFARE AND MORE BUSINESSES ARE POPPING UP THE 7200 MEMBERS OF HARTFORD MEMORIAL ARE LARGELY RESPONSIBLE FOR THE CHANGE THE CHURCH OPENED A SOCIAL SERVICE CENTER IN 1977 AND IT PROVIDES FOOD CLOTHING MEDICAL HELP AND EMOTIONAL COUNSELING TO THE UNDERPRIVILEGED IT ALSO STARTED A SCHOOL TO TRAIN FORMER CRIMINALS AND DRUG ADDICTS TO BE AUTO MECHANICS NEXT MR ADAMS RAISED 1 MILLION FROM HIS CONGREGATION TO BUY LOTS THAT HE DESCRIBES AS SITTING FOUL AND UNUSED THE CHURCH LEASED THEM TO KENTUCKY FRIED CHICKEN AND MCDONALD'S RESTAURANTS WHICH QUICKLY BUILT LARGE FRANCHISES AND HIRED WORKERS FROM THE COMMUNITY ONCE THOSE BUSINESSES OPENED OTHER COMPANIES BEGAN INVESTING IN THE AREA THE NEIGHBORHOOD IS NOW HOME TO AMONG OTHER BUSINESSES A PIZZA HUT RALLY'S HAMBURGER RESTAURANT RECORD SHOP AND NUMEROUS CONVENIENCE STORES HARTFORD ALSO OWNS SEVERAL SMALL AUTO REPAIR SHOPS IN THE NEIGHBORHOOD THE CHURCH AWAKENED THE FINANCIAL COMMUNITY TO THE VALUE OF THE PROPERTY SAYS MR ADAMS HARTFORD MEMORIAL WORKS WITH A COALITION OF AREA HOSPITALS AND COLLEGES TO INVEST FURTHER IN THE COMMUNITY WITH THEIR HELP IT PLANS TO OPEN A CAR CARE MALL CHURCHES OFTEN HAVE A STRIKING ADVANTAGE OVER MANY BLACK ENTREPRENEURS EXPERIENCE FOR EXAMPLE CHURCHES ARE ACCUSTOMED TO BALANCING A BUDGET FORMULATING A PAYROLL AND WORKING WITH ACCOUNTANTS AND LAWYERS SAYS MR HANDY IN ADDITION HE SAYS MANY CHURCHES HAVE LAWYERS BUSINESSMEN AND ACCOUNTANTS IN THEIR CONGREGATIONS THE CHURCH CAN GO TO MEMBERS FOR SPECIFIC KINDS OF EXPERTISE EVEN THOUGH A GROWING NUMBER OF CHURCHES ARE OPENING BUSINESSES PASTORS SAY THAT MORE SHOULD BE DONE THE CHURCH MUST NOT JUST PREACH THE GOSPEL WE MUST DEMONSTRATE THE GOSPEL MR ADAMS SAYS WE MUST BRING CHANGES IN THE COMMUNITY AND CHANGES IN PEOPLE'S LIVES 9301270036 930127 ATCO SUN CO UNITS SIGN PACT TO DEVELOP COGENERATION PLANT EDMONTON ALBERTA CANADIAN UTILITIES LTD AND SUNCOR INC SAID THEY SIGNED AN AGREEMENT TO INVEST A TOTAL OF 270 MILLION CANADIAN DOLLARS US2114 MILLION TO JOINTLY DEVELOP AND OPERATE A NEW COGENERATION PLANT TO PROVIDE STEAM AND ELECTRIC POWER TO SUNCOR'S OIL SANDS OPERATION NEAR FORT MCMURRAY ALBERTA THEY SAID THE VENTURE WILL BE OWNED AND OPERATED EQUALLY BY THE TWO COMPANIES THE PLANT WILL REPLACE SUNCOR'S EXISTING STEAM HEAT AND ELECTRICAL GENERATING FACILITY AT FORT MCMURRAY AND WILL RESULT IN LOWER LEVELS OF SULPHUR DIOXIDE EMISSIONS THE NEW TECHNOLOGY ALSO WILL LOWER THE PLANT'S OPERATING COSTS BY C30 MILLION TO C40 MILLION ANNUALLY OR ABOUT C150 A BARREL IT CURRENTLY COSTS SUNCOR ABOUT C19 A BARREL TO EXTRACT THE THICK STICKY BITUMEN FROM ITS OIL SANDS RESERVES THE NEW COGENERATION FACILITY IS PART OF A RESTRUCTURING OF THE FORT MCMURRAY OPERATIONS WHICH IS AIMED AT EVENTUALLY CUTTING OPERATING COSTS BY C5 TO C7 A BARREL NEW MINING METHODS ANNOUNCED LAST YEAR WILL TRIM C3 A BARREL FROM COSTS THE COMPANY SAID CANADIAN UTILITIES AN EDMONTONBASED UTILITY WITH INTERESTS IN OIL AND GAS PRODUCTION IS A UNIT OF ATCO LTD OF EDMONTON AN ENERGY HOLDING COMPANY SUNCOR BASED IN TORONTO IS AN OIL AND GAS PRODUCTION REFINING AND MARKETING CONCERN THAT IS 14 OWNED BY THE GOVERNMENT OF THE PROVINCE OF ONTARIO AND 68 BY SUN CO OF RADNOR PA 9301270035 930127 SOME MIGHT SAY SUCH PROLIFICACY LEAVES LITTLE TIME FOR RESEARCH BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL IN THE PUBLISHORPERISH ACADEMIC WORLD VIRGIL PERCEC QUALIFIES AS VIRTUALLY IMMORTAL IN 1991 THE CASE WESTERN RESERVE UNIVERSITY CHEMIST PUBLISHED 56 PAPERS MAKING HIM ONE OF ONLY SEVEN SCIENTISTS WORLDWIDE WHO AVERAGED MORE THAN A PAPER A WEEK ACCORDING TO SCIENCE WATCH A NEWSLETTER BY PHILADELPHIA'S INSTITUTE FOR SCIENTIFIC INFORMATION WHILE OTHER MEMBERS OF THE NEWSLETTER'S PAPERAWEEK CLUB WERE NAMED AS AUTHORS MORE TIMES THAN DR PERCEC HE WAS NO 1 IN TERMS OF OUTPUT PER SCIENTIST TOTAL PAPERS DIVIDED BY AVERAGE NUMBER OF COAUTHORS REACHED AT HIS CLEVELAND OFFICE THE 46YEAROLD ROMANIAN IMMIGRANT ATTRIBUTES HIS PRODUCTIVITY MAINLY TO WORKING ON A NUMBER OF THINGS AT THE FOREFRONT OF DIFFERENT FIELDS RELATED TO POLYMERS BUT BEING ONE OF SCIENCE'S TOP SCORERS DOESN'T NECESSARILY LEAD TO HIGH REPUTE INDEED THE MOST PROLIFIC SCIENTIST OF THE 1980S RUSSIAN CHEMIST YURY STRUCHKOV RECENTLY WON THE 1992 IG NOBEL PRIZE FOR LITERATURE THE IG NOBEL PRIZES SPONSORED BY THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S MUSEUM AND THE JOURNAL OF IRREPRODUCIBLE RESULTS ARE AWARDED ANNUALLY TO SPOTLIGHT DUBIOUS ACHIEVEMENTS IN SCIENCE SUCH AS THE INVENTION OF BLUE JELLO PEOPLE WHO PRODUCE AN INHUMAN NUMBER OF PAPERS RAISE QUESTIONS SAYS DAVID PENDLEBURY SCIENCE WATCH'S EDITOR FOR INSTANCE SOME SEEMINGLY CUT THEIR WORK INTO LITTLE PARCELS RELATIVELY MINOR FINDINGS THAT ARE REPORTED IN OBSCURE HIGHLY SPECIALIZED JOURNALS IN ORDER TO MAXIMIZE PUBLICATION FREQUENCY DR PERCEC WHO WRITES ON ION RADICAL POLYMERIZATION AND OTHER TOPICS IN SUCH JOURNALS AS MACROMOLECULES AND POLYMER BULLETIN SAYS HIS PAPERS ARE NOT BASED ON NUMBERS BUT ON QUALITY AND MANY CONTAIN SIGNIFICANT FIRSTTIME IDEAS DR PERCEC IS WELLREGARDED SAYS SIMON KANTOR A POLYMER SCIENTIST AT THE UNIVERSITY OF MASSACHUSETTS AMHERST BUT THE NUMBER OF PAPERS A RESEARCHER PUBLISHES DOESN'T NECESSARILY REFLECT EXCELLENCE DESPITE HIS ACHIEVEMENT DR PERCEC APPEARS TO HAVE LITTLE RISK OF WINNING AN IG NOBEL PRIZE HIS TOTAL AUTHOR COUNT IS STILL SMALL COMPARED WITH THAT OF THE STUPENDOUS DR STRUCHKOV WHO WAS NAMED AS AN AUTHOR ON 948 PAPERS IN THE 1980S AND ON 83 IN 1991 AFTER ALL IG NOBELS ARE NOT GIVEN OUT FOR TINY BURSTS OF GENIUS SNIFFS MARC ABRAHAMS WHO EDITS THE JOURNAL OF IRREPRODUCIBLE RESULTS 9301270034 930127 FOREIGN EXCHANGE UK RATES CUT GIVES THE MARK A BOOST DOLLAR HOLDS ON ENDS LITTLE CHANGED BY GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STERLING PLUNGED TUESDAY AFTER THE BANK OF ENGLAND SURPRISED THE MARKET BY CUTTING INTEREST RATES THOUGH THE BRITISH MOVE SENT FUNDS COURSING INTO THE MARK DEALERS SAID THE DOLLAR HELD ON AGAINST THE GERMAN CURRENCY ENDING LITTLE CHANGED LATE IN NEW YORK STERLING WAS TRADING AT 15380 DOWN 12 FROM 15565 LATE MONDAY IN NEW YORK THE POUND WAS QUOTED AT 24254 MARKS BELOW 24538 MARKS ABOUT MIDDAY IN TOKYO WEDNESDAY THE DOLLAR WAS TRADING AT 15825 MARKS AND AT 12393 YEN THE DOLLAR MEANWHILE WAS QUOTED AT 15770 MARKS UP SLIGHTLY FROM 15765 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12355 YEN SLIGHTLY ABOVE 12345 YEN THE MARKET WAS STUNNED EARLY TUESDAY WHEN BRITAIN'S CENTRAL BANK SIGNALED A CUT IN BASE LENDING RATES TO 6 FROM 7 DEALERS SAID THEY PULLED A BIG SURPRISE AND THAT'S WHY STERLING DROPPED SAID ANGELO EVANGELISTA A VICE PRESIDENT IN CORPORATE FOREIGN EXCHANGE AT BANK OF BOSTON AFTER CUTTING RATES A TOTAL OF THREE PERCENTAGE POINTS SINCE SEPTEMBER'S EUROPEAN CURRENCY CRISIS THE BANK OF ENGLAND SEEMED LIKELY TO HOLD OFF ON FURTHER EASING AT LEAST UNTIL THE BRITISH GOVERNMENT'S BUDGET STATEMENT IN MARCH DEALERS SAID AND ALTHOUGH THE BRITISH ECONOMY CLEARLY IS IN SEVERE STRAITS RECENT REPORTS SUGGESTED IT MIGHT HAVE REACHED BOTTOM MONDAY FOR EXAMPLE A SURVEY OF MANUFACTURERS SHOWED THE SHARPEST RISE IN OPTIMISM IN FIVE YEARS STERLING HAD GAINED ON THE NEWS AND THE MARKET WAS OFF ITS GUARD FOR A RATE CUT DEALERS SAID BUT CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT SAID TUESDAY OTHER DATA INCLUDING SLOW MONEYSUPPLY GROWTH AND DECLINING RETAIL SALES SHOWED THE ECONOMY NEEDED IMMEDIATE HELP IN THE CURRENCY MARKET HOPE OF RECOVERY HELPS THE POUND OVER THE LONG TERM BUT FOR THE MOMENT DEALERS SAID THE FOCUS IS SQUARELY ON INTEREST YIELDS BRITISH LEADERS JUST SEEM MORE CONCERNED WITH LOWER INTEREST RATES THAN THE VALUE OF THEIR CURRENCY SAID SHELDON MATLOW A VICE PRESIDENT AT STANDARD CHARTERED BANK PLC IN NEW YORK BUT AFTER ITS INITIAL PLUNGE FOLLOWING THE RATE CUT STERLING STABILIZED DEALERS SAID AS THE MARKET ADJUSTED TO THE NEWS BANK OF BOSTON'S MR EVANGELISTA SAID IT LOOKED LIKE IT BOUNCED NICELY DEALERS SAID TECHNICAL SUPPORT APPEARED AROUND 24200 MARKS STALLING THE SELLOFF BUT DEALERS SAID THE UK'S ECONOMY COULD REQUIRE ANOTHER RATE CUT TO REVIVE CLOUDING THE OUTLOOK FOR A STERLING RALLY CLEARLY THE UK RIGHT NOW IS IN A DEPRESSION SAID MR EVANGELISTA ADDING I THINK 5 BASE LENDING RATE IS AROUND THE CORNER IN ADDITION DEALERS SAID GERMANY'S CONTINUING RELUCTANCE TO LOWER ITS INTEREST RATES WILL KEEP THE POUND UNDER PRESSURE AND ALTHOUGH THE DOLLAR MANAGED TO FIND A RESTING PLACE AFTER MONDAY'S PLUNGE DEALERS SAID THE STILLWIDE GAP BETWEEN US AND GERMAN INTEREST RATES STANDS IN THE WAY OF ANY IMMEDIATE REBOUND IN THE US CURRRENCY 9301270033 930127 BUSINESS BRIEF BRUSH WELLMAN INC FOURTHPERIOD NET IS POSTED REVERSING YEAREARLIER LOSS BRUSH WELLMAN INC WHICH POSTED NET INCOME OF 21 MILLION OR 13 CENTS A SHARE FOR THE 1992 FOURTH QUARTER SAID IT IS CAUTIOUS ABOUT THE OUTLOOK FOR 1993 SALES FOR THE QUARTER WERE 668 MILLION BRUSH WELLMAN CHAIRMAN GORDON HARNETT SAID SOME SALES GROWTH IS ANTICIPATED BUT MARGINS WILL CONTINUE TO BE UNDER PRESSURE EXPENSES FOR SALES MARKETING AND ENVIRONMENTAL ACTIVITIES ARE EXPECTED TO INCREASE IN THE YEARAGO QUARTER THE MAKER OF ENGINEERED MATERIALS HAD A LOSS OF 301 MILLION OR 188 A SHARE REFLECTING CHARGES OF 307 MILLION FOR ASSET WRITEDOWNS AND OTHER PROVISIONS SALES WERE 622 MILLION EXCLUDING THE CHARGES BRUSH WELLMAN SAID IT HAD OPERATING PROFIT OF 600000 OR THREE CENTS A SHARE FOR 1992 BRUSH WELLMAN POSTED NET OF 105 MILLION OR 65 CENTS A SHARE ON SALES OF 265 MILLION THAT COMPARES WITH A YEAREARLIER LOSS OF 44 MILLION OR 274 A SHARE REFLECTING 472 MILLION IN CHARGES FOR ASSET WRITEDOWNS PROVISIONS AND AN ACCOUNTING CHANGE SALES WERE 2675 MILLION EXCLUDING THE CHARGES THE COMPANY SAYS 1991 OPERATING PROFIT WAS 32 MILLION OR 19 CENTS A SHARE 9301270032 930127 BANKAMERICA REPORTS STRONG 4THPERIOD NET PROFIT REACHES 473 MILLION AS FIRM WEATHERS WOES OF CALIFORNIA ECONOMY BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO DESPITE CALIFORNIA'S PROLONGED ECONOMIC WOES BANKAMERICA CORP ANNOUNCED ANOTHER STRONG QUARTER OF PROFIT ALONG WITH PREVIOUSLY REPORTED PLANS TO SELL OFF 1 BILLION IN TROUBLED REAL ESTATE FOURTHQUARTER NET INCOME AT THE NATION'S SECONDLARGEST BANK LINED UP WITH ANALYSTS' EXPECTATIONS AT 473 MILLION OR 118 A SHARE THAT WAS UP 66 FROM 285 MILLION OR 119 A SHARE A YEAR EARLIER HOWEVER THE LATEST RESULTS AREN'T DIRECTLY COMPARABLE WITH LAST YEAR'S BECAUSE THEY INCLUDE THE OPERATIONS OF SECURITY PACIFIC CORP WHICH WERE ACQUIRED IN APRIL THE COMPANY'S SHARES WERE QUOTED AT 53625 UP 225 IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY WITH A RETURN ON ASSETS FOR THE QUARTER AT A SOLID 105 BANKAMERICA CONTINUES TO SHRUG OFF THE NEGATIVE EFFECTS OF RECESSION THE PERFORMANCE REFLECTS WIDE NETINTEREST MARGINS ESSENTIALLY FLAT LOANLOSS CHARGES AND PROBLEM ASSETS PLUS COST SAVINGS FROM THE MERGER THAT ARE AHEAD OF SCHEDULE IN THE FIRST INDICATION THAT FRESH CAPITAL IS BEGINNING TO SEEP INTO THE ILLIQUID CALIFORNIA PROPERTY MARKET BANKAMERICA SAID MORGAN STANLEY REAL ESTATE FUND LP WOULD BUY REAL ESTATE ASSETS WITH A FACE VALUE OF 17 BILLION FOR ABOUT 59 CENTS ON THE DOLLAR OR 1 BILLION THE FUND MANAGED BY A UNIT OF MORGAN STANLEY GROUP INC WILL OVERSEE LIATION OF THE ASSETS THE AGREEMENT IS SUBJECT TO FINANCING INCLUDING AS MUCH AS 100 MILLION FROM BANKAMERICA IN THE FORM OF NONVOTING PARTICIPATION CERTIFICATES THAT WILL BE DISTRIBUTED TO BANK STOCKHOLDERS THE TRANSACTION IS EXPECTED TO CLOSE DURING THE SECOND QUARTER THE BANK'S PROBLEM ASSETS AT 1009 BILLION OR 56 OF ITS TOTAL 1806 BILLION IN ASSETS DECLINED BY ABOUT 800 MILLION FROM THE THIRD QUARTER MAINLY BECAUSE OF UNSPECIFIED ASSET SALES SEPARATE FROM THE MORGAN STANLEY ACCORD EXCLUDING THAT TRANSACTION THE BANK HAS SOME 24 BILLION IN FORMER SECURITY PACIFIC ASSETS THAT IT HOPES TO UNLOAD SOON PROBLEMS DISCOVERED IN SECURITY PACIFIC'S LOAN PORTFOLIO AFTER THE MERGER MAY HAVE COST BANKAMERICA A KEY OPPORTUNITY TO EXPAND IN THE HUGE TEXAS MARKET AS A RESULT OF HUGE ADDITIONS TO GOODWILL OR THE AMOUNT IT OVERPAID FOR SECURITY PACIFIC THE BANK'S TANGIBLE COMMON EQUITY RATIO HAS FALLEN TO 474 OF ASSETS FROM NEARLY 6 A YEAR AGO THAT RELATIVELY LOW RATIO MAY HAVE LED REGULATORS TO DISCOURAGE BANKAMERICA FROM BIDDING ON FAILED FIRST CITY BANCORP OF HOUSTON ANALYSTS SAID WINNING BIDS FOR FIRST CITY ARE EXPECTED TO BE ANNOUNCED THIS WEEK BANKAMERICA DECLINED TO COMMENT ON WHETHER IT WAS AMONG THE BIDDERS THAT LIKELY MISSED OPPORTUNITY ISN'T THE ONLY COST OF THE BIGGEST MERGER IN BANKING HISTORY SINCE THE SECURITY PACIFIC TRANSACTION CLOSED BANKAMERICA'S GOODWILL HAS MORE THAN TRIPLED TO A TOTAL 39 BILLION TO GET RID OF IT THE BANK WILL HAVE TO MAKE QUARTERLY WRITEOFFS OF 39 MILLION OR SO OVER THE NEXT 25 YEARS THE BANK'S LOANLOSS PROVISION FOR THE QUARTER WAS 260 MILLION EQUAL TO THAT TAKEN IN THE THIRD PERIOD AND BELOW THE 275 MILLION OF A YEAR EARLIER NET CREDIT LOSSES WERE 501 MILLION UP FROM 371 MILLION IN THE PREVIOUS QUARTER ANALYSTS SAID THAT CREDIT LOSSES TYPICALLY EXCEED PROVISIONS WHEN MANAGEMENT FEELS LOAN TROUBLES ARE UNDER CONTROL FOR THE YEAR THE BANK REPORTED NET OF 149 BILLION OR 421 A SHARE UP FROM 112 BILLION OR 478 A SHARE IN 1991 9301270031 930127 WORLD MARKETS TOKYO'S NIKKEI RALLIES 13 IN TECHNICAL LIFT LONDON SHARES SOAR 23 ON LENDINGRATE CUT A WALL STREET JOURNAL NEWS ROUNDUP BUOYED BY ARBITRAGE ACTIVITY TOKYO'S MAIN INDEX RALLIED 13 TUESDAY THOUGH THE BROADER MARKET POSTED LESS IMPRESSIVE GAINS LONDON SHARE PRICES ROCKETED UP 23 AS A CUT IN BRITAIN'S BASE LENDING RATE SPURRED HOPES FOR HIGHER CORPORATE EARNINGS AND CONSUMER SPENDING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 4936 POINTS MONDAY ADVANCED 20518 TO 1649263 ON WEDNESDAY THE NIKKEI INDEX ROSE 2949 POINTS TO CLOSE THE MORNING SESSION AT 1652212 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A MODERATE 200 MILLION SHARES UP FROM 1756 MILLION SHARES MONDAY GAINERS TOPPED LOSERS572364 THE TOKYO STOCK PRICE INDEX TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 664 POINTS MONDAY DROPPED 463 TO 165172 RUMORS THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE THIS WEEK SPURRED SOME COVERING OF SHORT POSITIONS ESPECIALLY IN THE MORNING SESSION IN A SHORT SALE BORROWED STOCK IS SOLD BY AN INVESTOR WHO HOPES TO PROFIT BY BUYING AN EQUAL NUMBER OF SHARES LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK A JAPANESE MONETARY EASING MIGHT NOT PROVE ENOUGH TO REVIVE THE MARKET THOUGH AS PARTICIPANTS CONTINUED TO INSIST ON WAITING FOR GOVERNMENT MEASURES TO STIMULATE THE ECONOMY COMMENTS BY GOVERNMENT OFFICIALS DURING THE DAY LACKED A CLEAR MESSAGE AND CAUSED CONFUSION IN THE MARKET FINANCE MINISTER YOSHIRO HAYASHI SAID A RATE CUT WAS OUT OF THE QUESTION FOR NOW AND HE EXPRESSED DOUBTS ABOUT THE WISDOM OF THE GOVERNMENT'S SETTING UP A BODY TO BUY STOCKS TO BRACE THE BOURSE BUT THE HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY FAVORED A REDUCTION IN THE CENTRAL BANK'S KEY INTEREST RATE AND WAS QUOTED AS BACKING AGGRESSIVE PURSUIT OF POLICIES TO SUPPORT STOCK PRICES THOUGH THE MINISTRY DENIED HE MADE SUCH REMARKS THE NIKKEI POPPED ABOVE 16500 FOR LESS THAN HALF AN HOUR IN AFTERNOON TRADING BUT IT QUICKLY FELL BACK THROUGH THAT LEVEL WHICH UNTIL LATE LAST WEEK SERVED AS A PERCEIVED LINE OF SOLID SUPPORT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SOARED 638 POINTS TO 28357 THE FT 30STOCK INDEX RALLIED 449 POINTS OR 21 TO 21899 VOLUME CLIMBED SHARPLY TO 8618 MILLION SHARES FROM 4903 MILLION SHARES A DAY EARLIER IN ADDITION TO THE CUT IN THE BASE LENDING RATE LONDON STOCKS WERE HELPED BY WALL STREET'S CONTINUING RALLY THE BRITISH BOND MARKET'S BUOYANCY AND STERLING'S STABILITY AGAINST THE DOLLAR BUT THE MAIN FUEL FOR STOCKS' BROADBASED RALLY WAS THE UNEXPECTEDLY SUDDEN AND DEEPERTHANANTICIPATED RATE CUT TO 6 FROM 7 MOST PARTICIPANTS HAD EXPECTED A REDUCTION OF HALF A PERCENTAGE POINT AND THEN NOT UNTIL THE GOVERNMENT PRESENTED ITS BUDGET MARCH 16 STRATEGISTS ENTHUSIASTICALLY PREDICTED THE RATE MOVE WOULD GIVE BRITISH STOCKS THE MOMENTUM NEEDED TO PUSH THEIR RECENT RALLY TO TOP 3000 ON THE FTSE 100 BY THE END OF THIS YEAR IF EARNINGS GROWTH ACCELERATES STOCKS COULD RISE WITHOUT HITTING EXCESSIVE PRICEEARNING MULTIPLES FOR NOW EVIDENCE OF BETTER PROFITS HAS BEEN ELUSIVE GIVEN PATCHY SIGNALS OF A RECOVERY FOR BRITAIN'S ECONOMY IN FRANKFURT STOCKS ENDED SLIGHTLY HIGHER IN QUIET UNFOCUSED TRADING THE DAX 30STOCK INDEX ROSE 692 POINTS TO 157616 ACTIVITY WAS MARKED BY TECHNICAL TRADING IN A CONTINUING CONSOLIDATION FOLLOWING FRIDAY'S RALLY BUT BRITAIN'S CUT IN ITS BASE LENDING RATE GAVE GERMAN STOCKS A MILD BOOST THOUGH THEY GAVE UP PART OF THE GAINS LATER IN THE DAY THOUGH THE BRITISH RATE REDUCTION WAS VIEWED IN FRANKFURT AS A LEVER ON GERMANY'S CENTRAL BANK TO LOWER ITS HIGH INTEREST RATES WHICH WOULD AID GERMAN COMPANIES' GROWTH PROSPECTS THE OVERALL EFFECT OF THE BRITISH ACTION ON THE DAX WAS WEAK ELSEWHERE IN EUROPE PARIS EQUITIES CLIMBED HELPED BY A REBOUND IN THE OIL SECTOR AMSTERDAM PRICES ENDED MIXED AFTER BEING DRAGGED DOWN BY THE WEAK DOLLAR BUT RECOVERING ON BRITAIN'S RATE CUT THEN DRIFTING BECAUSE OF LITTLE CHANCE FOR OTHER SUBSTANTIVE EUROPEAN RATE CUTS SOON MILAN SHARE PRICES FIRMED AFTER A NEGATIVE MOOD WAS TURNED AROUND ON EXPECTATIONS OF A DISCOUNT RATE CUT BY THE BANK OF ITALY PROMPTED BY A REPORT THAT INFLATION DECLINED MADRID STOCKS SOARED AFTER BRITAIN ANNOUNCED THE RATE REDUCTION STOCKHOLM PRICES RECOVERED FROM A WEAK OPENING TO END A FOURSESSION LOSING STREAK ZURICH SHARES TOO OVERCAME EARLY WEAKNESS BOOSTED BY THE BRITISH ACTION TO FINISH MIXED IN QUIET ACTIVITY BECAUSE OF VARIED OBSERVANCES OF THE AUSTRALIA DAY HOLIDAY SYDNEY STOCK PRICES MOVED HIGHER HELPED BY WALL STREET'S GAIN MONDAY SINGAPORE SHARES ROSE TO APPROACH THEIR RECORD HIGHS RESUMING A HOLIDAYINTERRUPTED RALLY THAT BEGAN LATE LAST YEAR HONG KONG SHARES EDGED HIGHER IN A RELATIVELY QUIET START TO THE LUNAR NEW YEAR AS PARTICIPANTS REACTED TO HIGHER PRICES IN LONDON FOR STOCKS WITH DUAL LISTINGS SEOUL'S INDEX FELL DESPITE A CUT IN THE CENTRAL BANK'S REDISCOUNT RATES WHICH HAD BEEN EXPECTED AND FACTORED INTO STOCK PRICES THOUGH THE BROADER MARKET POSTED GAINS MANILA STOCKS TUMBLED ON PROFITTAKING WELLINGTON SHARES GAINED AS OVERSEAS INVESTORS CONTINUED TO BUY BLUE CHIPS AMONG CORPORATE DEVELOPMENTS IN FRANKFURT PORSCHE PLUNGED 24 MARKS OR 52 TO 440 MARKS 279 THE AUTO MAKER PREDICTED ITS LOSS FOR THE YEAR ENDING JULY 31 WILL WIDEN FROM THE YEAREARLIER DEFICIT OF 658 MILLION MARKS 417 MILLION WHICH MARKED THE FIRST LOSS IN PORSCHE'S HISTORY THE COMPANY ALSO STATED A GOAL OF BREAKING EVEN IN FISCAL 1994 WHEN IT SAID PRODUCTION WILL DECLINE TO BETWEEN 15000 AND 18000 VEHICLES FROM 19000 A YEAR EARLIER WHILE THE BREAKEVEN POINT HAS DROPPED TO 18000 FROM 21000 IN PARIS ELF AQUITAINE GAINED 63 FRENCH FRANCS OR 19 TO 3307 FRANCS 6206 THE STATECONTROLLED OIL COMPANY'S 1992 PROFIT FELL A PRELIMINARY 37 TO 62 BILLION FRANCS 116 BILLION BATTERED AMID THE OIL INDUSTRY'S SLUMP BUT ELF SAID THAT EVEN THOUGH OIL PRICES COULD DROP THIS YEAR THE COMPANY IS DETERMINED TO IMPROVE EARNINGS PARTLY BY TRIMMING ITS BUDGET 10 EURO DISNEY ROSE 27 OR 41 TO 672 DESPITE POSTING A CONSOLIDATED NET LOSS OF 492 MILLION FRANCS FOR ITS FIRST QUARTER ENDED DEC 31 THE THEME PARK AND RESORT OPENED APRIL 12 1992 THUS THERE AREN'T ANY COMPARABLE FIGURES FOR THE YEAREARLIER PERIOD THE RESULTS WERE IN THE MIDDLE OF THE RANGE ESTIMATED BY ANALYSTS WHO ALSO SEE A NET LOSS OF 1 BILLION FRANCS FOR THE FISCAL YEAR BUT EURO DISNEY DID REPORT HIGHERTHANEXPECTED OPERATING REVENUE OF 944 MILLION FRANCS FOR THE FISCAL FIRST PERIOD 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 9301270030 930127 TRADE WATCHERS SHOULD FOCUS ON REGIONS NOT NATIONS BY KENICHI OHMAE WASHINGTON IS NOW IN ITS RELATIONS WITH THE REGIONAL ECONOMIES OF THE US IN THE SAME SITUATION AS LONDON WAS WITH ITS COLONIES IN THE LATE 18TH CENTURY IF THE FEDERAL GOVERNMENT TRIES TO IMPOSE CENTRAL CONTROL ON THESE INCREASINGLY DIVERSE REGIONS IT WILL LOSE EVEN MORE ECONOMIC RELEVANCE AND POWER THAN IT HAS ALREADY LOST A REGIONAL ECONOMY IS A UNIT OF ABOUT FIVE MILLION TO 20 MILLION PEOPLE WITH A DISTINCT SKILL BASE AND INDUSTRIAL PROFILE THAT CAUSES IT TO TRADE NOT ONLY GOODS AND SERVICES BUT ALSO PEOPLE INFORMATION TECHNOLOGY AND CAPITAL WITH OTHER REGIONAL STATES AROUND THE WORLD IN EUROPE A GOOD EXAMPLE IS THE NEW CONTINENTAL INDUSTRIAL BELT THAT INCLUDES ALSACELORRAINE FRANCE BADENWUERTTEMBERG AND BAVARIA BOTH IN SOUTHERN GERMANY IN ASIA THREE OF THE MOST PROSPEROUS REGIONS ARE SINGAPORE'S GROWTH TRIANGLE ENCOMPASSING INDONESIA'S RIAU ISLANDS AND MALAYSIA'S JOHOR STATE HONG KONG AND THE PEARL RIVER DELTA IN SOUTHERN CHINA AND TAIWAN NORTH AMERICA CONSISTS OF A DOZEN OR MORE REGIONAL STATES GOOD EXAMPLES ARE THE PACIFIC NORTHWEST INCLUDING BRITISH COLUMBIA WITH ITS CLOSE TIES TO THE PACIFIC RIM SOUTHERN CALIFORNIA AND TEXAS WITH THEIR TIES TO MEXICO AND THE GREAT LAKES REGION INCLUDING ONTARIO AN APPRECIATION OF THE DIFFERENCES BETWEEN REGIONS IS REFLECTED IN THE STRATEGY OF JAPANESE COMPANIES IN THE US JAPANESE COMPANIES TEND TO AVOID WASHINGTON AND NEW YORK AND START UP IN CALIFORNIA OR THE SOUTHERN STATES NOT ONLY LOCATING PRODUCTION THERE BUT ALSO FOCUSING THEIR MARKETING EFFORTS THERE THEY HAVE DONE THE SAME IN EUROPE WALES FOR EXAMPLE RECEIVES HALF OF JAPAN'S DIRECT INVESTMENT IN BRITAIN IF AMERICA'S TRADE WATCHERS EVER CAPTURED TRADE FLOWS ON A REGIONAL BASIS THEY WOULD PAINT A FAR DIFFERENT PICTURE THAN THEY DO NOW MOREOVER THEY WOULD RECOGNIZE HOW IRRELEVANT OR EVEN HARMFUL SOME OF THEIR GOODFORTHE COUNTRY AND LET'SMAKEAMERICACOMPETITIVE PROPOSALS ARE FOR MANY INDIVIDUAL REGIONS SUCH A PERSPECTIVE MIGHT HAVE PREVENTED THE VOLUNTARY RESTRAINTS ON AUTOMOTIVE AND STEEL IMPORTS THE SEMICONDUCTOR PRICE FLOORS QUOTAS ON COLOR TVS ALL OF WHICH PUT THE INTERESTS OF ONE OR TWO REGIONS AHEAD OF THE INTERESTS OF SEVERAL OTHERS THE TRADE WATCHERS SHOULD REALIZE TOO THAT AMERICA'S SOCALLED TRADE IMBALANCE IS NOTHING OF THE SORT SO LONG AS THE REST OF THE WORLD CONTINUES TO TRADE IN GREENBACKS UNLIKE OTHER COUNTRIES THE US USES ITS DOMESTIC CURRENCY TO BUY FOREIGN GOODS THIS MAKES THE TRADE IMBALANCE AKIN TO AN IMBALANCE OF DOMESTIC REGIONAL TRADING SUCH AS THAT BETWEEN ARIZONA AND CALIFORNIA OR MAINE AND NEW YORK THE TRADE IMBALANCE REPRESENTS A VICTORY FOR US CONSUMERS WHO ARE ABLE TO OBTAIN THE BEST AND THE CHEAPEST GOODS WORLDWIDE USING THEIR DOMESTICALLY PRINTED PAPER WITH THE CURRENT ARRANGEMENT IT IS AS IF THE US HAD REGIONALIZED CANADA MEXICO JAPAN TAIWAN KOREA AND GERMANY AND MADE THEM PARTS OF ITS DOMESTIC ECONOMY GIVEN THESE REALITIES WOULDN'T IT BE BETTER TO LET INDIVIDUAL REGIONS FIGURE OUT WHAT'S BEST FOR THEM WHAT HELPS AUSTIN EXCEL GLOBALLY IN ELECTRONICS OR IDAHO IN CHIPS MIGHT NOT HELP THE NORTHWEST EXCEL IN AEROSPACE WOULDN'T THIS BE BETTER THAN THE CURRENT SYSTEM UNDER WHICH EUROPEANS AS A CLUSTER NEGOTIATE WITH NORTH AMERICANS AS A CLUSTER ENSURING THAT SMALL POLITICALLY ACTIVE GROUPS CAN IMPOSE THEIR WILL ON MILLIONS OF OTHER PEOPLE THE WORLD ECONOMY IS MOVING IN JUST THE OPPOSITE DIRECTION AROUND THE WORLD EVERBETTERINFORMED PEOPLE ARE DEMANDING THE BEST AND CHEAPEST GOODS AND SERVICES THAT BASIC FORCE HAS OVERRUN MANUFACTURERS AND POLITICIANS WHO SAY BUY AMERICAN OR JAPANESE IS BEST LAST MONTH IN TOKYO A GROUP OF BUSINESS AND OPINION LEADERS STARTED A MOVEMENT TO FUND A NEW POLITICAL PROCESS FOR JAPAN OUR GOALS ARE TO REDUCE PROTECTIONISM AND PUT PEOPLE'S INTERESTS FIRST WE ALSO ADVOCATE A NEW CONSTITUTION THAT RECOGNIZES THAT JAPAN HAS ABOUT A DOZEN REGIONAL ECONOMIES THIS CONSTITUTION WOULD LET THOSE REGIONAL ECONOMIES DEAL WITH THE WORLD IN THEIR OWN BEST INTERESTS JAPAN WOULD TAKE A BACK SEAT JAPAN WOULD THEREFORE BECOME A REPUBLIC AND RID ITSELF OF ITS CENTRAL BUREAUCRACY IN A WAY WE ARE FOLLOWING THE LEAD OF EUROPE AND THE CONCEPTS OF FEDERATION AND COMMUNITY THERE WE HAVE SEEN NATIONSTATES RELAX THEIR TRADITIONAL TENSION AND ALLOW MORE AUTONOMY FOR REGIONS SUCH AS WALES CATALONIA AND LOMBARDY IT DOESN'T SEEM THAT PRESIDENT CLINTON'S ADVISERS UNDERSTAND THIS REALITY THE CLINTON TEAM USES THE WORD GLOBAL OFTEN AS IF TO PROVE IT UNDERSTANDS INTERNATIONAL ECONOMIC AFFAIRS BUT IT USUALLY IS FOLLOWED BY THE WORD COMPETITION AS IF TO IMPLY THAT THE US IS PITTED AGAINST OTHER COUNTRIES IN A WINORLOSE BATTLE AND IT SEEMS TO WANT TO EMULATE JAPAN'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AT THE VERY TIME WHEN MITI ITSELF IS REDEFINING ITS MISSION IN A BORDERLESS WORLD MR CLINTON'S PROPOSED TAX ON FOREIGN COMPANIES SUGGESTS THAT HE DOESN'T APPRECIATE THE FINANCIAL INTERDEPENDENCE OF THE WORLD'S MAJOR ECONOMIES HIS PROPOSED TAX COULD CAUSE JAPANESE CAPITAL TO GO ELSEWHERE TO MEXICO CANADA OR EVEN JAPAN AND CREATE A REAL VACUUM OF CAPITAL IN SEVERAL REGIONS IN THE US WHICH IS ALREADY SHORT OF CAPITAL JUST TALKING ABOUT SOMETHING LIKE THIS COULD CAUSE WHAT AMERICAN ECONOMISTS CALL CAPITAL FLIGHT AND WHAT WE IN TOKYO CALL HAPPY HOMECOMING INDUSTRIAL PLANNING IS NOT THE ANSWER NOW IS NOT THE TIME FOR THE US TO IMITATE JAPAN OR GERMANY IT IS TRUE THAT IN THE '80S WHILE THE US WAS DEREGULATING AND OPENING ITS MARKETS ALONG WITH BRITAIN JAPAN AND GERMANY HELD BACK AND TOOK ADVANTAGE THROUGH SUBSIDIES AND PROTECTIONISM BUT NOW US COMPANIES AND US MANAGERS ARE MUCH STRONGER AND READY FOR THE '90S THE JAPANESE AND GERMAN GOVERNMENTS HAVE NO CHOICE BUT TO RESPOND TO THEIR CONSUMERS AND DEREGULATE IT WILL BE THEIR COMPANIES PLAYING CATCHUP AND IT WILL BE US AND BRITISH BANKS AIRLINES ETC THAT SUCCEED IN THE LONG RUN THE US GOT IT RIGHT AND THE FACT THAT ITS ECONOMY IS BEGINNING TO REVIVE IS EVIDENCE OF THIS THIS DOESN'T MEAN THAT THE ROAD AHEAD IS SMOOTH TURBULENCE IS PART OF OUR TIMES WHAT MR CLINTON MUST NOT DO IS LEAN BACK ON HIS SKIS AS EVERY GOOD SKIER KNOWS TO MAKE A TURN YOU MUST LEAN INTO THE HILL AGAINST YOUR INSTINCTS LET REGIONAL ECONOMIES LEAN INTO THE HILL WIN OR LOSE JOBS TAKE PART INDIVIDUALLY IN A GLOBAL ECONOMY THAT NOW IS DEFINED BY 750 MILLION PEOPLE WHO EARN 10000 A YEAR OR MORE HAVE FAITH IN THE BENEFITS OF THOSE MYRIAD INTERACTIONS AND RESIST THE TEMPTATION TO TRY TO CONTROL IT ALL FROM THE CENTER MR OHMAE IS A PARTNER IN THE TOKYO OFFICE OF MCKINSEY & CO 9301270029 930127 BUSINESS BRIEF CHAMPION INTERNATIONAL CORP JUDGE REJECTS SETTLEMENT IN LANDOWNERS' CLASS ACTION A FEDERAL JUDGE IN GREENVILLE TENN REJECTED A PROPOSED SETTLEMENT IN A CLASSACTION LAWSUIT AGAINST CHAMPION INTERNATIONAL CORP BY TENNESSEE LANDOWNERS DOWNSTREAM FROM THE CHAMPION PAPER MILL IN CANTON NC US DISTRICT JUDGE THOMAS HULL REJECTED THE 65 MILLION SETTLEMENT PROPOSED IN DECEMBER BECAUSE OF OBJECTIONS THAT IT DIDN'T BAR FUTURE INJURY CLAIMS AGAINST CHAMPION DIDN'T DIRECTLY PAY ANY OF THE 2600 LANDOWNERS IN THE CLASS AND WOULDN'T PREVENT CHAMPION'S FUTURE POLLUTION OF THE PIGEON RIVER CHAMPION BASED IN STAMFORD CONN SAID IT WOULD TRY TO REACH A NEW SETTLEMENT TO SATISFY THE COURT 9301270028 930127 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK HERMES L AMES 46 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THIS BANK HOLDING COMPANY MR AMES WHOSE POSITION IS NEWLY CREATED WILL CONTINUE AS PRESIDENT OF THE CHASE MANHATTAN BANK OF CONNECTICUT UNIT 9301270027 930127 WHO'S NEWS COMERICA INC COMERICA INC DETROIT TODD W HERRICK PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TECUMSEH PRODUCTS CO WAS NAMED TO THIS BANK HOLDING COMPANY'S BOARD FILLING A VACANT SEAT 9301270026 930127 BUSINESS BRIEF SANTA MONICA BANK NET LOSS FOR FOURTH PERIOD AMOUNTED TO 153 MILLION SANTA MONICA BANK REPORTED A FOURTHQUARTER NET LOSS OF 153 MILLION OR 216 A SHARE AFTER A 292 MILLION ADDITION TO LOANLOSS RESERVES FOR BAD REALESTATE LOANS THE YEAR EARLIER THE SANTA MONICA CALIF BANK POSTED NET INCOME OF 29 MILLION OR 41 CENTS A SHARE IN DECEMBER THE BANK SUSPENDED ITS FOURTHQUARTER DIVIDEND OF 15 CENTS A SHARE AND SAID IT WOULD REPORT A LOSS FOR 1992 THE RESERVE WAS SET BY MANAGEMENT AFTER A THOROUGH REVIEW OF THE BANK'S LOAN PORTFOLIO BY THE COMPANY AND REPRESENTATIVES OF THE FEDERAL DEPOSIT INSURANCE CORP AUBREY L AUSTIN PRESIDENT OF THE BANK SAID THE BANK ADDED THAT IT EXPECTS TO RECEIVE THE FDIC'S EXAMINATION REPORT IN ABOUT FOUR WEEKS 9301270025 930127 BUSINESS BRIEF ALASKA AIR GROUP INC CARRIER'S 4THQUARTER LOSS WIDENED TO 446 MILLION ALASKA AIR GROUP INC SEATTLE POSTED AN UNEXPECTEDLY WIDE FOURTHQUARTER LOSS OF 446 MILLION OR 347 A SHARE AS FARE WARS FORCED THE AIRLINE TO RETRENCH THE LOSS WIDENED FROM 895000 OR 19 CENTS A SHARE A YEAR EARLIER REVENUE IN THE QUARTER FELL TO 2589 MILLION FROM 2646 MILLION A YEAR EARLIER THE LOSS STEMMED PARTLY FROM FIERCE COMPETITION WHICH HAS LED TO RECENT COSTCUTTING MOVES THE AIRLINE SCRAPPED PLANS FOR A 45 MILLION MAINTENANCE FACILITY AND LAST WEEK ELIMINATED SOME FLIGHTS AND ANNOUNCED LAYOFFS OF 15 OF ITS PILOTS ALSO AS EXPECTED THE COMPANY ALSO TOOK A 166 MILLION AFTERTAX CHARGE TO RETIRE AIRCRAFT THESE LOSSES ARE INTOLERABLE SAID CHAIRMAN RAYMOND VECCI WITH THE NUMBER OF FINANCIALLY TROUBLED AIRLINES GROWING WE DON'T LOOK FOR IMPROVEMENT ANY TIME SOON 9301270024 930127 BUSINESS BRIEF MIDLANTIC CORP FIRM POSTS 4THPERIOD PROFIT CITES IMPROVED ASSET QUALITY MIDLANTIC CORP ENDED 1992 WITH ITS THIRD CONSECUTIVE QUARTER OF PROFITABILITY CITING IMPROVED ASSET QUALITY AND HIGHER NONINTEREST INCOME FOR THE FOURTH QUARTER THE BANK HOLDING COMPANY IN EDISON NJ REPORTED NET INCOME OF 112 MILLION OR 22 CENTS A SHARE COMPARED WITH A LOSS OF 813 MILLION OR 216 A SHARE A YEAREARLIER TOTAL ASSETS DECREASED 26 TO 1442 BILLION MIDLANTIC SAID IT HAS SUCCESSFULLY COMPLETED ITS RESTRUCTURING PROGRAM BEGUN IN 1991 AND HAS IMPROVED ITS CAPITAL RATIOS SUBSTANTIALLY FOR THE YEAR NET INCOME WAS 7 MILLION OR EIGHT CENTS A SHARE COMPARED WITH A LOSS OF 5433 MILLION OR 1436 A SHARE IN 1991 THE COMPANY TOOK A 6404 MILLION PROVISION FOR LOAN LOSSES COMPARED WITH 1379 MILLION IN 1992 MIDLANTIC SHARES NEVERTHELESS FELL CLOSING YESTERDAY AT 19 A SHARE DOWN 125 IN NATIONAL OVERTHECOUNTER TRADING 9301270023 930106 ENTERPRISE ENTREPRENEURS START THE YEAR WITH CAUTIOUS OPTIMISM FIRMS ARE ENCOURAGED BY CLINTON'S PLANS AND EXPECT US ECONOMY TO GROW BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL AS 1993 BEGINS SMALLBUSINESS OWNERS ARE CAUTIOUSLY OPTIMISTIC ABOUT PRESIDENTELECT CLINTON AND THE US ECONOMY WHILE POLLS SHOW THAT MOST ENTREPRENEURS VOTED FOR THE REPUBLICAN TICKET THEY ARE ENCOURAGED BY MR CLINTON'S POLICY STATEMENTS AND POLITICAL APPOINTMENTS SINCE HIS VICTORY HOW LONG THE HONEYMOON LASTS DEPENDS ON THE INCOMING PRESIDENT'S HANDLING OF FOUR CRITICAL ISSUES SMALLBUSINESS OWNERS SAY AT THE SAME TIME THEY SMELL ECONOMIC GROWTH AND WANT A BITE THIS IS THE FIRST DEMOCRATIC PRESIDENT I'VE SEEN WHO'S ESPOUSING MODERATE POLICIES EXULTS JOHN GARDNER A MILWAUKEE REALESTATE DEVELOPER DIRECTOR OF THE SMALL BUSINESS FOUNDATION OF AMERICA AND A FORMER PRESIDENT OF NATIONAL SMALL BUSINESS UNITED OTHERS ECHO HIS VIEW I DIDN'T VOTE FOR HIM BUT I LIKE WHAT HE'S DOING AND I LIKE THE WAY THE COUNTRY IS RESPONDING SAYS CHRIS PIEPER PRESIDENT OF ABC TECHNOLOGIES INC A SOFTWARE COMPANY IN PORTLAND ORE HE'S TAKEN A VERY CANDO' ATTITUDE TOM HUBLER FOUNDER OF HUBLER FAMILY BUSINESS CONSULTANTS MINNEAPOLIS SAYS THAT HIS MOSTLY CONSERVATIVE REPUBLICAN CLIENTS WERE FAVORABLY IMPRESSED BY MR CLINTON'S ECONOMIC CONFERENCE LAST MONTH THE EMERGING CLINTON PROGRAM FOR SMALL BUSINESSES COMES ACROSS AS A MIX OF MODERATE AND CONSERVATIVE MR HUBLER CONTINUES HE'S COMMUNICATING TO THE CONSERVATIVE BUSINESS COMMUNITY THAT HE ISN'T GOING TO GO OFF HALFCOCKED SUCH GENERALLY POSITIVE ASSESSMENTS OF MR CLINTON COMING ON THE HEELS OF A STRONG CHRISTMAS RETAIL SEASON CONTRAST SHARPLY WITH THE DISMAY EXPRESSED BY MANY SMALLBUSINESS OWNERS AND ADVOCATES RIGHT AFTER THE ELECTION BUT WHILE THEY GIVE THE PRESIDENTELECT HIGH MARKS FOR HIS TALK ENTREPRENEURS PROMISE TO BE STERN JUDGES OF HIS ACTIONS SMALLBUSINESS OWNERS SAY THAT THEY WANT QUICK PROGRESS ON FOUR ISSUES SKYROCKETING COSTS OF MEDICAL INSURANCE AND WORKERS' COMPENSATION HERBERT PROKSCHA PRESIDENT OF LA ROMAGNOLA A WINTER PARK FLA MAKER OF SPECIALTY PASTAS SAYS HIS SPENDING FOR THOSE ITEMS WILL SHOOT UP 13 THIS YEAR TO 250000 OUT OF PROJECTED REVENUE OF 65 MILLION RUNAWAY MEDICAL COSTS ARE MY BIGGEST PROBLEM MR PROKSCHA SAYS SOME NEW YORK SMALL BUSINESSES WITH EMPLOYEE HEALTHINSURANCE COVERAGE FROM EMPIRE BLUE CROSS & BLUE SHIELD SHARE HIS CONCERN THEY FACE AN IMMEDIATE PREMIUM INCREASE OF AS MUCH AS 252 THE CREDIT CRUNCH IF I CAN GET ACCESS TO CREDIT I'M PRIMED TO PUT PEOPLE BACK TO WORK SAYS RAMON BILLEAUD PRESIDENT OF LEVERT LAND CO AND LEVERTST JOHN INC NEW ORLEANS COMPANIES WITH INTERESTS IN SUGAR CANE AND REAL ESTATE MR BILLEAUD SAYS THAT HE WOULD LIKE TO BORROW 5 MILLION TO 15 MILLION BUT HE DOUBTS BANKS WILL HELP BECAUSE SO MANY ARE SKITTISH ABOUT LENDING TO SMALL BUSINESSES NOWADAYS AS A RESULT HE SAYS HE WILL FORGO EXPANSION THIS YEAR AND CONCENTRATE ON RESTRUCTURING EXISTING DEBT ENVIRONMENTAL AND OTHER FEDERAL REGULATIONS MR HUBLER OF HUBLER FAMILY BUSINESS CONSULTANTS SAYS THAT EXCESSIVE REGULATIONS ARE THE BIGGEST HEADACHE FOR SMALL BUSINESSES THE BUDGET DEFICIT MR GARDNER PRESIDENT OF GARDNER GROUP LTD A MILWAUKEE REALESTATE COMPANY SAYS REDUCING THE GAP REMAINS AN OVERRIDING PRIORITY FOR THE SMALLBUSINESS COMMUNITY BECAUSE A SMALLER DEFICIT WOULD HELP TO REJUVENATE THE ECONOMY IN FACT HE ADDS MANY BUSINESS OWNERS WOULD FAVOR LOWERING THE DEFICIT THROUGH A BROAD TAX INCREASE YET FOR ALL OF THEIR CONCERNS ABOUT THE NEW ADMINISTRATION SMALLBUSINESS OWNERS GENERALLY LIKE THE WAY THE RECOVERY IS SHAPING UP MICHAEL SORRENTINO PRESIDENT OF DONGHIA FURNITURE & TEXTILES IN NEW YORK SAYS THAT HE IS VERY UPBEAT ABOUT THE ECONOMY WE'RE GOING TO HAVE A LOT OF ADRENALINE PUMPING HE SAYS HE FORESEES A 10TO15 INCREASE IN DONGHIA'S REVENUE IN FISCAL 1994 WHICH BEGINS JUNE 1 UP FROM APPROXIMATELY 20 MILLION IN THE CURRENT FISCAL YEAR DURING CALENDAR 1993 HE ANTICIPATES ADDING AT LEAST FIVE PEOPLE TO HIS STAFF OF 120 MR PIEPER OF ABC TECHNOLOGIES EXPECTS HIS SOFTWARE COMPANY TO DOUBLE ITS REVENUE TO 16 MILLION THIS YEAR THAT WILL ENABLE HIM TO ADD SIX TO 10 PEOPLE TO HIS CURRENT STAFF OF 22 HE SAYS THERE'S A CHANGE OF MINDSET IN THE US HE SAYS ONCE YOU START MOVING FORWARD YOU BUILD MOMENTUM MR HUBLER THE CONSULTANT SAYS THAT HE IS BOOKED WELL INTO FEBRUARY AND IS EVEN TURNING SOME BUSINESS AWAY AT A USUALLY SLOW TIME MR GARDNER THE MILWAUKEE DEVELOPER SAYS BUSINESS IS BOOMING AT ARTCRAFT INDUSTRIES CORP A MAKER OF TRAIN SEATS AND AIRPLANESEAT UPHOLSTERY THAT HE ADVISES AND IS OWNED BY HIS WIFE LAST YEAR WAS A DEAD YEAR HE SAYS NOW HE ADDS EVERYBODY IS REPLACING THEIR OLD SEATS NOT EVERYONE IS SO CONFIDENT BRIAN MILLER SENIOR VICE PRESIDENT AND PART OWNER OF BENNER & FIELDS INC PLUMBING HEATING AND AIRCONDITIONING CONTRACTORS IN GREENSBORO NC ANTICIPATES A SLIGHTLY IMPROVED TREND THIS YEAR BUT IT WILL TAKE UNTIL 1994 FOR POSITIVE RESULTS TO SHOW UP ON THE BALANCE SHEET HE CONTINUES MR MILLER SAYS THAT HE REDUCED HIS WORK FORCE SLIGHTLY TO ABOUT 100 PEOPLE EARLY LAST YEAR AND WON'T HIRE MORE EMPLOYEES UNTIL THE SECOND HALF OF 1993 AT THE EARLIEST BY THEN HE HOPES THAT LOCAL BUSINESSES WILL BE IMPLEMENTING LONGDELAYED BUILDING AND RENOVATION PROGRAMS AND WHILE MR PROKSCHA THE PASTA MAKER EXPECTS SALES TO GROW 22 THIS YEAR HE NOTES THAT THEY JUMPED 30 LAST YEAR TO 52 MILLION DURING HARD TIMES HE SAYS PEOPLE DOWNSWITCH THEIR MENUS TO PASTA FROM MEAT IN A STRONG ECONOMY THEY MIGHT SWITCH BACK THE CONSENSUS OF MY DISTRIBUTORS IS THAT THE ECONOMY HAS BOTTOMED OUT BUT ISN'T RISING HE SAYS EVEN SO HIS COMPANY WILL DO ITS BIT TO PERK UP THE ECONOMY HE PLANS TO INVEST 25 MILLION IN TWO NEW FACTORIES AND ENLARGE HIS STAFF OF 50 BY EIGHT TO 10 PEOPLE ULTIMATELY MR CLINTON'S REPUTATION WITH THE SMALLBUSINESS COMMUNITY PROBABLY WILL RISE AND FALL WITH THE NATION'S ECONOMIC FORTUNES IF THE ECONOMY DOESN'T GET GOING HE'LL BE VIEWED AS A FAILURE SAYS MR PIEPER OF ABC TECHNOLOGIES MR SORRENTINO OF DONGHIA FURNITURE & TEXTILES FIGURES MR CLINTON IS A CENTRIST WHO WILL WORK FOR SMALL BUSINESSES BECAUSE HE KNOWS THAT IS WHERE THE GROWTH IS GOING TO COME FROM COMPARING THE PRESIDENTELECT TO A ONETERM DEMOCRATIC PREDECESSOR MR SORRENTINO CAUTIONS I JUST HOPE HE REMEMBERS HOW HE GOT INTO THE WHITE HOUSE HE TAPPED INTO SOMETHING REAL AND STRONG CARTER FORGOT ABC TECHNOLOGIES INC EXPECTS ITS SALES TO INCREASE TO 3 MILLION THIS YEAR FROM 16 MILLION IN 1992 SAYS CHRIS PIEPER PRESIDENT AN ENTERPRISE ARTICLE JAN 6 INCORRECTLY GAVE PROJECTED 1993 SALES AS 16 MILLION 9301270022 930127 EQUITABLE TO SELL MONEY MANAGER TO AN AFFILIATE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EQUITABLE COS AGREED TO SELL ITS MONEYMANAGEMENT SUBSIDIARY FOR 250 MILLION TO A COMPANY IT PARTLY OWNS ALLIANCE CAPITAL MANAGEMENT LP FOR EQUITABLE ONE OF THE COUNTRY'S LARGEST LIFE INSURERS THE PROPOSED SALE IS IN MANY WAYS COSMETIC AND IT'S DRIVEN BY ACCOUNTING RULES RATHER THAN BY ECONOMIC CONSIDERATIONS BUT IN A MARKETPLACE WHERE PUBLIC PERCEPTIONS OFTEN DETERMINE WHETHER AN INSURANCE COMPANY MAKES A SALE THE ACTION SHOULD HELP EQUITABLE DO MORE BUSINESS ANALYSTS SAID A LOT OF WHAT HAPPENS TODAY IS PERCEPTIONDRIVEN SAID LARRY MAYEWSKI A VICE PRESIDENT WITH AM BEST CO AN OLDWICK NJ RATING AGENCY FOR ALLIANCE ALREADY ONE OF THE COUNTRY'S LARGEST MONEY MANAGERS THE PROPOSED TAKEOVER OF EQUITABLE CAPITAL MANAGEMENT CORP THE EQUITABLE UNIT WILL RAISE THE AMOUNT OF MONEY IT MANAGES FROM 62 BILLION TO NEARLY 100 BILLION FOR EQUITABLE THE BENEFIT COMES IN BEING ABLE TO REPORT A HIGHER LEVEL OF CAPITAL THE MOST COMMON MEASURE OF INSURANCECOMPANY STRENGTH ANALYSTS SAY THE SALE SHOULD ADD MORE THAN 100 MILLION TO EQUITABLE'S CAPITAL WHICH STOOD AT 24 BILLION ON SEPT 30 THIS TRANSACTION BETWEEN TWO SUCCESSFUL INVESTMENT MANAGEMENT COMPANIES WILL DEMONSTRATE THE PREVIOUSLY UNRECOGNIZED VALUE OF EQUITABLE CAPITAL SAID EQUITABLE CHAIRMAN RICHARD JENRETTE UNDER ACCOUNTING RULES COMPANIES CAN'T WRITE UP THE VALUE OF A UNIT WITHOUT SELLING AT LEAST A PART OF IT HIGHER CAPITAL ALSO WILL HELP EQUITABLE SCORE BETTER UNDER A NEW REGULATORY SYSTEM OF MEASURING THE FINANCIAL STRENGTH OF INSURERS THE SYSTEM GRADES COMPANIES ACCORDING TO HOW MUCH CAPITAL THEY HAVE TO SUPPORT THE RISKINESS OF THEIR INVESTMENTS AND OPERATIONS THE PUBLIC IS EXPECTED TO USE THE SCORES TO HELP DECIDE WHICH COMPANIES TO BUY INSURANCE FROM UNDER THE TERMS OF THE PENDING TRANSACTION EQUITABLE WILL SELL EQUITABLE CAPITAL TO ALLIANCE FOR 625 MILLION NEWLY ISSUED PARTNERSHIP UNITS IN ALLIANCE THE ADDITIONAL UNITS WILL BOOST EQUITABLE'S OWNERSHIP OF ALLIANCE FROM 55 TO 65 EQUITABLE IS A MUCH STRONGER COMPANY THAN WHEN IT WENT PUBLIC LAST JULY BUT ITS FINANCIAL RATINGS CONTINUE TO LAG MANY OF ITS COMPETITORS SHELLY HARRIS AN ANALYST WITH STANDARD & POOR'S CORP SAID THE TRANSACTION IS UNLIKELY TO INFLUENCE S&P'S RATING OF EQUITABLE WHICH IS SINGLEAPLUS I WOULD NOT CONSIDER THIS TO BE A MATERIAL EVENT SHE SAID ANALYSTS DON'T EXPECT HUGE COST SAVINGS FROM THE COMBINATION OF ALLIANCE AND EQUITABLE CAPITAL THAT'S BECAUSE MOST OF THE COST IS COMPENSATION TO ANALYSTS AND PORTFOLIO MANAGERS WHO IF LAID OFF ARE PRONE TO TAKE BUSINESS WITH THEM SAID W COLEMAN BITTING AN ANALYST AT KIDDER PEABODY & CO THE IMPORTANT THING ABOUT THE TRANSACTION IS THAT IT ADDS TO EARNINGS AT ALLIANCE HE SAID THOUGH HE ADDED THAT IT'S TOO EARLY TO SAY HOW MUCH 9301270021 930127 BOEING AIRBUS COMPANIES TO ANNOUNCE PACT ON JET BOEING CO IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS REACHED A FINAL ACCORD WITH THE FOUR MEMBER COMPANIES OF AIRBUS INDUSTRIE TO STUDY JOINT DEVELOPMENT OF A 600SEAT JETLINER THE DEAL APPEARS TO UNDERCUT ANY SIMILAR EFFORT FOR NOW BY THE AIRBUS CONSORTIUM ITSELF ALTHOUGH TOP AIRBUS MANAGERS HAVE DENIED THEY ARE BEING CUT OUT OF THE DEAL PEOPLE FAMILIAR WITH THE AGREEMENT BETWEEN BOEING AND THE EUROPEAN PARTNERS SAY IT CALLS FOR THE STUDY TO BE LED BY TWO OFFICIALS BOEING VICE PRESIDENT JOHN HAYHURST AND JUERGEN THOMAS A SENIOR OFFICIAL OF DEUTSCHE AEROSPACE A UNIT OF DAIMLERBENZ AG OF GERMANY IN ADDITION THE AGREEMENT WITH BOEING IS TO BE SIGNED BY BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN NONE OF THE COMPANIES HAS BEEN WILLING TO COMMENT ON THE TIMING OF THE ANNOUNCEMENT HOWEVER IN CONFIRMING THEIR PLANS EARLIER THIS MONTH BOEING OFFICIALS SAID THE NEW PACT WILL CALL FOR THE STUDIES TO DETERMINE REAL DEMAND FOR THE JET AND HOW TO BUILD IT PROFITABLY USING PLANTS ON SEVERAL CONTINENTS 9301270020 930127 MARKETING & MEDIA QUAYLE GETS BIG ADVANCE FOR HIS AUTOBIOGRAPHY NEW YORK IN THE ANNALS OF PUBLISHING HISTORY VICE PRESIDENTIAL MEMOIRS GET NO RESPECT BUT THAT DIDN'T STOP HARPERCOLLINS PUBLISHERS FROM PAYING A MILLIONDOLLAR ADVANCE TO DAN QUAYLE FOR HIS AUTOBIOGRAPHY HARPERCOLLINS A UNIT OF NEWS CORP SAID IT PAID SEVEN FIGURES FOR WORLD RIGHTS TO BOTH HARDCOVER AND PAPERBACK EDITIONS PLUS AUDIO RIGHTS THE YET UNTITLED BOOK TO BE WRITTEN WITH A COLLABORATOR STILL UNCHOSEN IS DUE OUT IN 1994 IN A MOVE VIEWED AS SHREWD BY RIVAL PUBLISHERS HARPERCOLLINS WILL PUBLISH AND MARKET THE BOOK IN PARTNERSHIP WITH CHRISTIAN BOOK PUBLISHER ZONDERVAN ALSO A NEWS CORP UNIT THE TWO COMPANIES HAVE UNITED BEFORE TO PRODUCE BESTSELLERS WITH A RELIGIOUS OR RIGHTLEANING SLANT INCLUDING BOOKS BY OLIVER NORTH AND TOM LANDRY DAN QUAYLE HAS A POLITICAL CONSTITUENCY THAT IS ARDENT AND HE HAS A CONSTITUENCY IN THE EVANGELICAL MARKET THAT WE'RE UNIQUELY SITUATED TO REACH SAID WILLIAM SHINKER PUBLISHER OF HARPERCOLLINS ADULT TRADE GROUP 9301270019 930127 LBO LAWSUITS DON'T PICK DEEP POCKETS BY JACK FRIEDMAN WHEN DREXEL BURNHAM FELL IN 1990 MANY LAWYERS AND CRITICS PREDICTED THAT THE LAWSUITS OF THE DECADE WOULD BE ATTACKS ON DEEP POCKETS WHEN LEVERAGED BUYOUTS ENDED IN BANKRUPTCY PROCEEDINGS CREDITORS WOULD FORCE DIRECTORS BANKS DEAL MAKERS AND SHAREHOLDERS TO PAY BILLIONS OF DOLLARS THROUGH FRAUDULENT CONVEYANCE SUITS A REVIEW OF ALL 500 REPORTED COURT OPINIONS MENTIONING LBOS SHOWS THAT THE ACTUAL RESULTS ARE STARTLINGLY DIFFERENT TO THE RELIEF OF EXECUTIVES AND THE DISMAY OF INVESTORS BARRIERS TO LITIGATION IN CHAPTER 11 ARE SO GREAT THAT PLAINTIFFS IN LARGE CASES HAVE VIRTUALLY NEVER GONE TO A FINAL RULING ON LIABILITY REMARKABLY THEY HAVE AGREED TO SETTLEMENTS AVERAGING ONLY 10 CENTS ON THE DOLLAR FOR EXAMPLE A SUIT FOR SEVERAL HUNDRED MILLION DOLLARS AGAINST DONALD TRUMP IN THE RESORTS INTERNATIONAL CASE WAS SETTLED FOR 12 MILLION PAID MOSTLY BY HIS INSURANCE COMPANY EVEN WHEN PLAINTIFFS BELIEVE THAT THERE HAS BEEN SIGNIFICANT MISCONDUCT IN MANY TYPES OF LITIGATION THEY MUST TEMPER THEIR EXPECTATIONS OF LARGE RETURNS THIS IS ESPECIALLY INSTRUCTIVE FOR PARTIES STILL BATTLING OVER LBOS IN CHAPTER 11 INCLUDING BEST PRODUCTS CIRCLE K KAISER STEEL MACY'S NATIONAL GYPSUM TWA WALTER INDUSTRIES WEST POINTPEPPERELL AND ZALE JEWELERS THE HARD REALITY IS THAT MANY JUDGES DO NOT FAVOR THESE SUITS CHARLES KLINK AN ATTORNEY WITH BROWN & WOOD NOTES THAT OF THE APPROXIMATELY TWO DOZEN DECISIONS DETERMINING FINAL LIABILITY LESS THAN FIVE HAD A VERDICT AGAINST DEFENDANTS THEY INCLUDE TABOR COURT REALTY IN WHICH EXTEAMSTER BOSS JIMMY HOFFA WAS INVOLVED WITH THE DEFENDANTS IN PRACTICE CREDITORS HAVE HAD TO CHOOSE BETWEEN VOTING FOR A COMPANY TO EMERGE FROM CHAPTER 11 WITH RELEASES FOR DEFENDANTS AND TAKING THEIR CHANCES AT LITIGATING FOR YEARS WHILE THE COMPANY REMAINS UNDER BANKRUPTCY PROTECTION THEY ALMOST ALWAYS CHOOSE TO SETTLE AND END THE BANKRUPTCY PROCEEDINGS LEONARD ROSEN OF THE LAW FIRM OF WACHTELL LIPTON ROSEN & KATZ OBSERVES THAT CREDITORS VERY OFTEN USE THESE SUITS TO GAIN BARGAINING LEVERAGE RATHER THAN TO ACTUALLY PURSUE LITIGATION THE LARGE BANKRUPTCY FILINGS WHOSE LBO LITIGATION HAS BEEN RESOLVED INCLUDE BICOASTAL CARTER HAWLEY HALE CHARTER MEDICAL DOSKOCIL FEDERATED/ALLIED GREYHOUND LINES INSILCO INTERCO KENDALL RESORTS INTERNATIONAL REVCO SOUTHLAND AND WIEBOLDT STORES IN THE FAILED LBOS THE CORPORATION'S ASSETS HAD BEEN HIGHLY LEVERAGED BY AN OUTSIDE PURCHASER OR BY INSIDERS IN A MANAGEMENT LBO SUCH AS CIRCLE K AND SOUTHLAND ALSO DIRECTORS MAY HAVE TAKEN ON DEBT IN A REVERSE CAPITALIZATION TO REPEL AN UNWANTED SUITOR SUCH AS CARTER HAWLEY HALE'S REJECTION OF A TAKEOVER BY THE LIMITED SUITS ARE FILED PRIMARILY FOR TWO TYPES OF ALLEGED WRONGDOING IN THE ORIGINAL LBO BOTH ARE BASED ON THE THEORY THAT TOO MUCH OF THE WEALTH OF THE CORPORATION WAS TAKEN OUT FOR SHAREHOLDERS AT THE EXPENSE OF BONDHOLDERS AND OTHER CREDITORS FRAUDULENT CONVEYANCE TYPICALLY SHAREHOLDERS RATHER THAN THE CORPORATION ITSELF RETAINED THE PROCEEDS OF ACQUISITION LOANS FROM FINANCIAL INSTITUTIONS LOANS THAT WERE SECURED BY THE ASSETS OF THE TARGET CORPORATION THE UNSECURED CREDITORS WHO ARE SENIOR TO SHAREHOLDERS ALLEGE THAT THEY WERE LEFT WITH LITTLE IF ANY UNSECURED ASSETS FOR REPAYMENT DIRECTOR'S BREACH OF FIDUCIARY DUTY AND UNLAWFUL DIVIDEND THE DIRECTORS AIDED BY THE PURCHASER LENDERS AND OTHERS MAY HAVE OVERVALUED THE COMPANY SO THAT THE LEVERAGING LEFT LESS THAN THE MINIMUM EQUITY CAPITAL ACCOUNT REQUIRED BY LAW ALLEGEDLY THIS CAUSED THE PAYMENT TO SHAREHOLDERS TO BE AN UNLAWFUL DIVIDEND THE RESULTS OF THESE LAWSUITS CAN BE EXPLAINED BY THREE FACTORS LAW PROCEDURE AND ECONOMICS LAW THE APPLICABLE LAWS ARE BROAD AND THE COURTS CONSISTENTLY HOLD THAT THEY APPLY IN PRINCIPLE TO LBOS HOWEVER LOOKING AT SPECIFIC FACTS CASE BY CASE THE FEDERAL COURTS OF APPEALS THE LEVEL JUST BELOW THE SUPREME COURT HAVE FOUND FOR DEFENDANTS IN VIRTUALLY EVERY ONE OF THE KEY CASES THEY CONSIDERED SINCE THE 1986 TABOR COURT REALTY DECISION THUS PLAINTIFFS HAVE REASON TO BE CONCERNED THAT COURTS OF APPEALS MAY RULE AGAINST THEM AFTER EXTENDED AND EXPENSIVE TRIAL LITIGATION ESPECIALLY FAVORED DEFENDANTS SEEM TO BE PUBLIC SHAREHOLDERS WHO RECEIVED MOST OF THE FUNDS BUT DID NOT CONTROL THE DEAL AS A PRACTICAL MATTER HOW WOULD COURTS FORCE TENS OF THOUSANDS OF INVESTORS NATIONWIDE TO RETURN THEIR PAYMENTS INDIVIDUALLY PARTICULARLY DISFAVORED PLAINTIFFS APPEAR TO BE TRADE CREDITORS WHO DID BUSINESS AFTER THE DEAL WAS FULLY DISCLOSED FURTHERMORE COURTS ARE MORE LIKELY TO ATTRIBUTE THE COLLAPSE TO ADVERSE BUSINESS CONDITIONS THAN TO A FAULTY LBO AS THE TIME LENGTHENS BETWEEN THE ORIGINAL DEAL AND THE BEGINNING OF CHAPTER 11 PROCEDURE THE TRIAL JUDGE'S AUTHORITY IS A POWERFUL BARRIER TO THE LITIGATION BANKRUPTCY TRIAL JUDGES ARE TYPICALLY CONCERNED ABOUT THE SUCCESSFUL ECONOMIC AND LEGAL RESTRUCTURING OF THE DEBTOR CORPORATION THEY USUALLY FAVOR SETTLEMENTS AND DO NOT WANT MANAGEMENT TO BE CONSUMED WITH LITIGATION IN VIRTUALLY EVERY CASE THE COURT PUT A HOLD ON THE FILING OR MOVING FORWARD OF MAJOR SUITS BY CREDITORS AGAINST DEEP POCKETS WHO WERE NOT THEMSELVES IN BANKRUPTCY PROCEEDINGS FURTHERMORE THE SUPREME COURT HAS NOT CLARIFIED WHAT SUITS SHOULD BE TRIED BEFORE A JURY IN BANKRUPTCY OR FEDERAL DISTRICT COURT THIS COMPOUNDS PLAINTIFFS' RISK OF EVENTUALLY BEING OVERRULED ON APPEAL AND MAY CLOUD THE THREAT OF A JURY IMPOSING PUNITIVE DAMAGES ECONOMICS UNDER THE BANKRUPTCY CODE MANAGEMENT IS USUALLY ALLOWED TO CONTINUE IN CONTROL DURING CHAPTER 11 IT NEGOTIATES AND DESIGNS THE FINAL PLAN OF REORGANIZATION OBVIOUSLY IT DOES NOT OFTEN FILE LARGE LAWSUITS AGAINST ITSELF ON BEHALF OF THE CORPORATION OR CREDITORS CREDITORS VIRTUALLY ALWAYS FEAR THE IMPACT ON THE COMPANY'S BUSINESS OF SEVERAL ADDITIONAL YEARS UNDER BANKRUPTCY PROTECTION OFTEN CREDITORS LOSE THEIR MILITANCY AFTER A COUPLE OF YEARS IN CHAPTER 11 TO DELAY LITIGATION UNTIL THE CREDITORS' RESOLVE WEAKENS MANAGEMENT MAY APPOINT A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS OR REQUEST AN EXAMINER TO INVESTIGATE THE CLAIMS FIRST AS WITH INTERCO THE CREDITOR GROUP USUALLY HAS DIVISIONS MANY CREDITORS THEMSELVES MAY BE LIABLE TO OTHER CREDITORS FOR PARTICIPATING IN THE LBO JUNIOR CREDITORS MAY THREATEN LITIGATION AS ONE OF THEIR ONLY BARGAINING LEVERS AGAINST MANAGEMENT OR SENIOR CREDITORS ALSO ARBITRAGERS WHO PURCHASED CREDITOR CLAIMS AT VERY LOW PRICES AND ARE QUITE SENSITIVE TO THE TIME VALUE OF MONEY MAY PUSH FOR QUICK REORGANIZATIONS WITH LOW SETTLEMENTS THAT ARE STILL PROFITABLE FOR THEM FURTHERMORE A NEW THIRDPARTY PURCHASER OR LENDER AT THE END OF THE BANKRUPTCY PROCEEDINGS WILL OFTEN DEMAND RELEASES TO DO THE DEAL IT WANTS PEACE AND THE END OF BAD PUBLICITY FACED WITH THE ALTERNATIVE OF A POTENTIALLY SHRINKING ECONOMIC PIE WITH MOUNTING PROFESSIONAL FEES DURING YEARS OF LITIGATION CREDITORS ALWAYS CHOOSE SETTLEMENT THUS AS A PRACTICAL MATTER VIRTUALLY THE ONLY SUITS THAT ARE ACTIVELY PURSUED ARE THE ONES IN WHICH THE REORGANIZATION FAILED AND THE COMPANY IS BEING LIQUIDATED IMPORTANTLY THE DEFENDANTS RARELY PUT IN NEW CASH AS PAYMENT IN SETTLEMENTS RATHER THEY REDUCE THEIR OWN CLAIMS SUCH AS FOR ACCRUED INTEREST ON LOANS THEY GIVE THE PLAINTIFFS A LARGER SHARE OF THE NEW EQUITY OR THEY OFFER FAVORABLE TERMS FOR POSTBANKRUPTCY FINANCING CONVENTIONAL WISDOM IS THAT DEEP POCKETS ARE HIT HARDEST WHEN THEIR CORPORATION FILES FOR BANKRUPTCY PROTECTION THE SUITS DO INEVITABLY TORMENT AND PRESSURE MANAGEMENT WHICH MAY DOUBT THE RELIABILITY OF ITS OFFICERS' AND DIRECTORS' INSURANCE POLICIES STILL IT IS CLEAR THAT CHAPTER 11 CAN BE USED BY SKILLFUL COUNSEL FOR DEFENDANTS TO OBTAIN REMARKABLY LOW SETTLEMENTS THIS RESULT IS IRONIC AND QUITE INSTRUCTIVE MR FRIEDMAN IS A PRIVATE INVESTOR IN LOS ANGELES AND ADVISER TO BOARDS OF DIRECTORS 9301270018 930127 ABREAST OF THE MARKET PROFITTAKING CUTS RALLY SHORT BUT INDUSTRIALS STILL ADVANCE 675 BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FALTERING BOND PRICES AND PROFITTAKING PRESSURE INTERRUPTED A STOCK MARKET RALLY THE DOW JONES INDUSTRIAL AVERAGE GREW 675 POINTS TO 329895 BUT THE STANDARD & POOR'S 500STOCK INDEX SLID 006 POINT TO 43995 AND THE NEW YORK STOCK EXCHANGE COMPOSITE EDGED ONLY 006 POINT HIGHER TO 24253 THE MARKET WAS UP TOO FAR TOO LONG SAID TOM JOYCE DIRECTOR OF EQUITY TRADING AT MERRILL LYNCH IT WAS DUE FOR A CORRECTION IT DIDN'T ALWAYS SEEM THAT WAY INVESTORS LAUNCHED EQUITY PRICES HIGHER YESTERDAY MORNING ENCOURAGED BY MONDAY'S 35POINT CLIMB STRONG ECONOMIC DATA POSITIVE INTERNATIONAL DEVELOPMENTS AND FAVORABLE CORPORATE NEWS FUELED THE ENTHUSIASM SALES OF EXISTING SINGLEFAMILY HOMES IN THE US SKYROCKETED 5 IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF FOUR MILLION THE HIGHEST LEVEL IN MORE THAN 13 YEARS ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS AND IN A SURPRISE MOVE THE BANK OF ENGLAND PARED DOMESTIC INTEREST RATES TO 6 FROM 7 WHICH SPIKED STOCKS HIGHER ON SEVERAL INTERNATIONAL EXCHANGES MARKET WATCHERS BELIEVE THE BRITISH CENTRAL BANK'S ACTION MIGHT PERSUADE THE BUNDESBANK TO FOLLOW SUIT HELPING TO LIGHT THE MARKET'S FUSE YESTERDAY MORNING INTERNATIONAL BUSINESS MACHINES' ANNOUCEMENT THAT IT WILL SLASH ITS QUARTERLY DIVIDEND BY MORE THAN HALF TO 54 CENTS A SHARE FROM 121 ALTHOUGH THE NEWS WAS WIDELY ANTICIPATED BIG BLUE ALSO SAID IT INTENDS TO REPLACE BELEAGUERED CHIEF EXECUTIVE JOHN F AKERS AFTER SOARING MORE THAN THREE POINTS AT THE OPENING ITS STOCK CLOSED UP 1/8 TO 49 LATE COMPUTERPROMPTED SELLING PROGRAMS KICKED IN BY MIDAFTERNOON TO DOUSE THE MARKET'S FLAMES SAGGING BOND PRICES AND CONSOLIDATION PRESSURE SHEARED MORE THAN 20 POINTS AWAY FROM THE INDUSTRIALS AND HELPED QUASH THE LATEST RALLY WE STARTED OFF WITH A BANG SAID RALPH ACAMPORA DIRECTOR OF TECHNICAL RESEARCH AT PRUDENTIAL SECURITIES BUT THE ENTHUSIASM GOT A LITTLE AHEAD OF ITSELF AND WE BACKED AWAY A LITTLE VOLUME GREW TO 311410000 SHARES UP FROM MONDAY'S 288010000 SHARES ADVANCERS ECLIPSED DECLINERS 1097 TO 824 AMERICAN EXPRESS THE DAY'S MOST ACTIVE BIG BOARD ISSUE SLIPPED 1 1/4 TO 23 7/8 AFTER IT REPORTED FOURTHQUARTER EARNINGS OF 15 CENTS A SHARE OR 82 MILLION LATE MONDAY A YEAR EARLIER AMERICAN EXPRESS HAD NET INCOME OF 47 CENTS A SHARE OR 237 MILLION ABOUT 73 MILLION SHARES CHANGED HANDS DISNEY JUMPED 2 3/4 TO 46 1/8 AFTER THE BURBANK CALIF ENTERTAINMENT GIANT POSTED A FISCAL FIRSTQUARTER PROFIT OF 48 CENTS A SHARE OR 260 MILLION COMPARED WITH YEAREARLIER NET INCOME OF 39 CENTS A SHARE OR 208 MILLION ALTHOUGH PROFIT WAS SLIGHTLY HIGHER THAN EXPECTED INVESTMENT IN EURO DISNEY WAS RESPONSIBLE FOR A LOSS OF 429 MILLION IN THE QUARTER BOEING FELL 1 3/8 TO 35 1/2 THE SEATTLE AIRCRAFT MAKER RECORDED A FOURTHQUARTER PROFIT OF 105 A SHARE OR 357 MILLION COMPARED WITH NET OF 117 A SHARE OR 403 MILLION A YEAR AGO EARNINGS IN THE LATEST QUARTER INCLUDED A CHARGE OF 20 MILLION FOR AN ACCOUNTING CHANGE BOEING TIED ITS OPERATING LOSSES TO DEFERRED ORDERS MERCK SLIPPED 1 5/8 TO 39 1/2 AFTER THE RAHWAY NJ PHARMACEUTICALS CONCERN REPORTED FOURTHQUARTER NET INCOME OF 53 CENTS A SHARE OR 6091 MILLION UP FROM YEARAGO EARNINGS OF 46 CENTS A SHARE OR 5298 MILLION PROFIT IN THE LATEST QUARTER FELL SHORT OF SOME ANALYSTS' PREDICTIONS BANKAMERICA CLIMBED 2 1/4 TO 53 5/8 THE SAN FRANCISCO BANK HOLDING COMPANY POSTED A FOURTHQUARTER PROFIT OF 119 A SHARE OR 473 MILLION RESULTS IN THE LATEST QUARTER AREN'T COMPARABLE WITH THE YEARAGO PERIOD BECAUSE THEY DON'T REFLECT A MERGER WITH SECURITY PACIFIC COMPAQ ADDED 1 7/8 TO 56 5/8 AFTER THE HOUSTON COMPUTER MAKER REPORTED FOURTHQUARTER NET INCOME OF 111 A SHARE OR 894 MILLION UP FROM EARNINGS OF 77 CENTS A SHARE OR 665 MILLION PREMARK INTERNATIONAL SURGED 5 1/8 TO 44 AFTER THE DEERFIELD ILL PLASTICS PROCESSOR POSTED A FOURTHQUARTER PROFIT OF 155 A SHARE OR 508 MILLION UP FROM YEARAGO EARNINGS OF 148 A SHARE OR 476 MILLION DELUXE CORP FELL 2 7/8 TO 44 1/8 THE ST PAUL MINN CHECK PRINTING SERVICE PROVIDER REPORTED FOURTHQUARTER NET INCOME OF 67 CENTS A SHARE OR 557 MILLION COMPARED WITH EARNINGS OF 63 CENTS A SHARE OR 527 MILLION A YEAR BEFORE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 208 TO 41160 THERE WERE 324 GAINERS AND 269 DECLINERS WANG LABORATORIES CLASS B SHARES ROSE AGAIN ON HEAVY VOLUME OF 65 MILLION SHARES THE MOST ACTIVE AMERICAN STOCK EXCHANGE ISSUE IT GAINED 625 CENTS TO 10625 THE STOCK HAS MORE THAN DOUBLED SINCE THURSDAY WHEN THE COMPUTER MAKER INDICATED IT WOULD SOON EMERGE FROM CHAPTER 11 DR PEPPER/SEVENUP COS FINALLY PRICED ITS MUCH AWAITED OFFERING AT 15 A SHARE THROUGH UNDERWRITERS LEAD BY MORGAN STANLEY THE SOFTDRINK COMPANY PRICED 205 MILLION COMMON SHARES 9301270017 930127 SOUTHERN NEW ENGLAND RATES NEW HAVEN CONN SOUTHERN NEW ENGLAND TELEPHONE CO SAID IT WILL REDUCE ITS THREEYEAR RATE INCREASE REQUEST TO STATE REGULATORS BY 26 MILLION TO 134 MILLION SOUTHERN NEW ENGLAND TELEPHONE A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP CITED PUBLIC CRITICISM AGAINST PROPOSED INCREASES IN LOCAL CALLING RATES TO SUPPORT A MODERNIZATION PLAN THE STATE PHONE UTILITY MAINTAINED THAT WITHOUT A RATE INCREASE IT WOULD BE UNABLE TO KEEP PACE WITH EVEN THE MORE MODERATE MODERNIZATION PLAN NOW BEING PROPOSED 9301270016 930127 COMEX TRADERS SHOW LITTLE ENTHUSIASM OVER PROSPECT OF TAKEOVER BY CBOT BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHILE CHICAGO BOARD OF TRADE FUTURES TRADERS LICK THEIR LIPS IN ANTICIPATION OF THE TAKEOVER OF THE AILING COMMODITY EXCHANGE TRADERS ON THE NEW YORKBASED COMEX AREN'T THRILLED ABOUT THE PROSPECT PEOPLE FEEL IT'S THE END OF SELFRULE SAID JOHN WALSH A GOLD TRADER I DON'T THINK ANYBODY AT THE COMEX REALLY WANTS IT THE TWO EXCHANGES ANNOUNCED A TENTATIVE AGREEMENT MONDAY IN WHICH CBOT THE WORLD'S LARGEST FUTURES MARKET WOULD TAKE OVER THE COMEX THE FOURTHBIGGEST COMMODITY EXCHANGE IN AN EFFORT TO SHORE IT UP THE COMEX HAS BEEN IN DECLINE AS TRADING IN ITS PRECIOUS METALS CONTRACTS HAS FADED THE AGREEMENT STILL SUBJECT TO APPROVAL BY REGULATORS AND MEMBERS OF BOTH EXCHANGES SURPRISED TRADERS AND DREW THE IRE OF SOME COMEX MEMBERS WHO SUGGESTED THEIR EXCHANGE WAS BEING GIVEN AWAY THE TERMS OF THE DEAL DON'T CALL FOR THE CBOT TO PAY THE COMEX ANY MONEY INSTEAD A TRUST FUND WOULD BE ESTABLISHED TO BUY OUT ANY COMEX MEMBERS WHO WANT TO SELL THEIR SEATS BUT LIKE IT OR NOT COMEX MEMBERS CONCEDE THAT THEY MAY BE FORCED TO ACCEPT THE TAKEOVER DEAL I DON'T THINK IT'S A QUESTION OF WANT OR NOT WANT SAID MR WALSH AT THIS POINT I DON'T THINK COMEX HAS A CHOICE STILL SOME MEMBERS IMMEDIATELY BEGAN LOOKING FOR OTHER SOLUTIONS TO THE COMEX'S PROBLEMS SEVERAL MEMBERS SAID YESTERDAY THAT THEY APPROACHED NEW YORK MERCANTILE EXCHANGE OFFICIALS TO SUGGEST THAT THE MERC CONSIDER MAKING A COMPETING BID FOR THE COMEX OTHERS SAID SUCH A MOVE WOULD LIKELY BE WELCOMED BY COMEX MEMBERS ALTHOUGH TWO YEARS AGO THE COMEX REJECTED A PROPOSED MERGER WITH THE MERC MY HOPE IS THAT THE NEW YORK MERC COMES THROUGH AS A WHITE KNIGHT TO KEEP CONTROL OF COMEX IN NEW YORK MR WALSH SAID UNDER THE TENTATIVE AGREEMENT WITH THE CBOT COMEX BOARD MEMBERS AREN'T ALLOWED TO EXPLORE PROPOSALS WITH OTHER EXCHANGES UNTIL THE ACCORD WITH CHICAGO IS BROKEN OFF ROBERT FINK FORMER CHAIRMAN OF THE COMEX SAYS ONE OF THE ADVANTAGES OF THE MERGER WITH THE NEW YORK MERC TWO YEARS AGO WOULD HAVE BEEN THAT IT ALLOWED COMEX MEMBERS TO HAVE A GREATER SAY IN THEIR FUTURE UNDER THE CURRENT CBOT PROPOSAL IT IS PRETTY CLEAR IN TERMS OF VOTING RIGHTS AND FUTURE GOVERNANCE WE ARE BEING CONSUMED HE SAID OFFICIALS AT THE NEW YORK MERC REFUSED TO COMMENT ON THE PROPOSALS BUT PEOPLE FAMILIAR WITH THE MERC SAID THAT THE EXCHANGE IS WAITING TO SEE HOW STRONG THE OPPOSITION TO THE PROPOSED DEAL WITH THE CBOT IS BEFORE THEY DECIDE WHETHER TO ACT MEANWHILE MANY OF COMEX'S GOLD SILVER AND COPPER TRADERS WERE ANGRY YESTERDAY THAT THE PROPOSED ACQUISITION BY THE CBOT WAS NEGOTIATED WITHOUT THE INPUT OF THE FLOOR TRADERS AND WAS PRESENTED TO THEM MONDAY MORNING JUST A FEW HOURS BEFORE THE PLAN WAS UNVEILED TO THE PRESS SOME TRADERS NOTED THAT IF THE COMEX WAS SO DESPERATE TO MERGE ITS BOARD SHOULD HAVE BEEN MORE AGGRESSIVE ABOUT EXPLORING OPPORTUNITIES WITH OTHER NEW YORK EXCHANGES MEANWHILE FUTURES TRADERS IN CHICAGO SAID THEY WERE OPTIMISTIC THAT CBOT MEMBERS WOULD APPROVE THE DEAL WHICH THEY FEEL IS HIGHLY FAVORABLE TO THE CBOT TRADERS SEEMED PARTICULARLY DELIGHTED WITH THE IDEA OF GETTING THE COMEX FOR ESSENTIALLY NOTHING BUT CHICAGO TRADERS AREN'T CONVINCED THAT COMEX MEMBERS WILL WILLINGLY SWALLOW THE DEAL I CAN SEE WHY COMEX MEMBERS WOULD HAVE SOME TROUBLES APPROVING IT SAID FREDERICK G UHLMANN EXECUTIVE VICE PRESIDENT FOR COMMODITIES TRADING AT RODMAN & RENSHAW INC IN CHICAGO WHAT'S IN IT FOR THEM BESIDES GETTING RID OF SOME MEMBERSHIPS ALONG THE LINE AND MAYBE CUTTING SOME COSTS THE DEAL IS SUBJECT TO APPROVAL BY MEMBERS OF BOTH EXCHANGES AND THE FEDERAL COMMODITY FUTURES TRADING COMMISSION HOWEVER IT MAY BE AWHILE BEFORE TRADERS IN CHICAGO OR NEW YORK GET A CHANCE TO VOTE ON IT A CBOT SPOKESMAN SAID THE EXCHANGE WOULD CONDUCT A DUE DILIGENCE PROCESS THAT IS LIKELY TO LAST THREE TO SIX MONTHS BEFORE SUBMITTING THE DEAL FOR A MEMBERSHIP VOTE 9301270015 930127 RETAILING STORES SIGNAL CLOSEOUT OF SUPER SALE ERA AS THEY MOVE IN FULLPRICE SPRING WARES BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL SCHAUMBURG ILL IT'S JANUARY CLEARANCE TIME AGAIN FOR RETAILERS AND THINGS ARE BUSTLING AT THE CAVERNOUS WOODFIELD MALL IN THIS NORTHWEST CHICAGO SUBURB BUT THIS YEAR SOMETHING IS MISSING THE EXPLOSION OF BOLD SALE SIGNS PROCLAIMING THAT PRICES HAVE BEEN SLASHED 50 TO 70 THE SIGNS WERE EVERYWHERE IN RECENT YEARS AND SOME REMAIN BUT MANY HAVE BEEN REPLACED IN STORE WINDOWS BY DISPLAYS OF FULLPRICED SPRING MERCHANDISE FOR RETAILERS THE CHANGE SIGNALS THAT CHRISTMAS 1992 WAS THE BEST IN YEARS THEY'RE STRONGER AND THEIR INVENTORIES ARE THINNER FOR SALESCONSCIOUS SHOPPERS BARGAIN HUNTING IS SUDDENLY MORE DIFFICULT BUT SOMETHING MUCH MORE STARTLING IS ALSO AFOOT RETAILING'S CRYSTAL BALL GAZERS CONTEND THE END OF THE ERA OF THE SUPER SALE OWEN SHAPIRO A CONSUMER RESEARCHER EXPECTS SHOPPERS TO ADJUST TO BUYING MORE MERCHANDISE AT FULL PRICE RATHER THAN HUNTING BARGAINS AS HE SEES IT CONSUMERS WILL TRADE SHORTER SHOPPING TRIPS FOR THE HIGHER COST OF GOODS SUCH A CONSUMER BEHAVIOR PATTERN USUALLY TAKES HOLD AS RECESSIONS YIELD TO PROSPERITY HE SAYS FOR MERCHANTS A STRONGER CONSUMER APPETITE FOR HIGHERPRICED MERCHANDISE IS EVERYBODY'S WISH COME TRUE SAYS MONROE MILSTEIN CHAIRMAN OF BURLINGTON COAT FACTORY CO A CLOTHING CHAIN KNOWN FOR ITS DISCOUNT PRICES HIS COMPANY IS TESTING TO SEE IF INITIAL PRICES HOLD UP ONE GARMENT RIPE FOR STRONGER PROFITS IS THE LONG LEATHER COAT A POPULAR ITEM IN SHORT SUPPLY IN RECENT WEEKS HE SAYS STILL UNKNOWN OF COURSE IS WHETHER SHOPPERS WILL SUBMERGE THEIR ZEAL FOR THE DEAL FOR LONG HARDLY ANYONE PREDICTS THAT CONSUMERS WILL RETURN TO SOME OF THE SPENDTHRIFT HABITS THEY DISPLAYED DURING THE LAST ECONOMIC BOOM BUT SHOULD RETAIL SALES SAG AGAIN WILL MERCHANTS AGAIN MARCH TO THE MARKDOWN THE EARLY WORD SAY RETAILERS IS THAT CONSUMERS SEEM WILLING TO SPEND MORE MONEY AND THAT ALLOWS SOME MERCHANTS TO TAKE ADVANTAGE OF THE SWITCH SPIEGEL INC'S EDDIE BAUER DIVISION DECLINED TO REDUCE PRICES ON SOME OF ITS OUTDOOR AND CASUAL APPAREL ITEMS BOTH AT ITS AFTERCHRISTMAS SALE AND IN ITS AFTERCHRISTMAS CLEARANCE CATALOG COMPANY OFFICIALS NOTED THAT THE EDDIE BAUER UNIT RECORDED A 26 SALES INCREASE IN THE FOURTH QUARTER NORDSTROM INC'S SUBURBAN CHICAGO DEPARTMENT STORE ABRUPTLY CURTAILED ITS TRADITIONAL JANUARY MEN'S SALE EARLIER THIS MONTH AFTER INVENTORIES THINNED AND SHOPPERS DISPLAYED A TASTE FOR ITS FULLPRICED SPRING MERCHANDISE IN THE THREE PREVIOUS YEARS THE MEN'S SALE WENT FULLBLAST UNTIL THE END OF THE MONTH ON ONE RECENT DAY AT NORDSTROM'S MEN'S DEPARTMENT NO BIG SALE SIGNS GREETED SHOPPERS INSTEAD A FRONTANDCENTER DISPLAY OF MEN'S COATS DEMURELY NOTED THAT THE MAKER IS HUGO BOSS TO DISCOVER THE COATS' 385 PRICE TAG SHOPPERS HAD TO DIG INSIDE THE COAT NEAR THAT DISPLAY WAS ANOTHER ONE OF FULLPRICED LIGHT COTTON PANTS AND SHIRTS AS WELL AS WINTER SWEATERS STILL SPORTING THEIR INITIAL 75 PRICE TAG NORDSTROM CAN BE AGGRESSIVE ON PRICES BECAUSE WE'RE IN EXCELLENT SHAPE WITH INVENTORIES RIGHT NOW SAYS COPRESIDENT JOHN WHITACRE AND CONSUMERS HE MAINTAINS ARE MORE IN THE MOOD TO BUY FRESH STYLES AT FULL PRICE YOU DON'T WANT TO GO AROUND FROM STORE TO STORE TO FIND ONLY CLEARANCE STUFF OUT THERE CONSUMERS CONTINUE TO HUNT BARGAINS BUT THEY'RE HUNTING THE REGULARPRICED GOODS EVEN MORE SAYS RONALD RAMSAYER SENIOR VICE PRESIDENT OF CATALOG SALES FOR TALBOT'S INC HE ADDS THAT THE COMPANY HAS ALREADY MOVED A LOT OF MERCHANDISE FROM ITS STORES AND CATALOG WAREHOUSES INTO ITS CLEARANCE OUTLET BECAUSE OFFICIALS BELIEVE THEIR NEW SPRING APPAREL WILL SELL WELL EVEN SEARS ROEBUCK & CO WHICH LAST MONTH PREDICTED ONLY MODEST CHRISTMAS SALES GROWTH AMID VICIOUS DISCOUNTING NOW IS CONFIDENT ENOUGH TO REPLACE WINTER CLEARANCE MERCHANDISE WITH SPRING GARMENTS ALL THIS IS SPRING MERCHANDISE SAYS DORRIT BERN SEARS VICE PRESIDENT OF WOMEN'S APPAREL WAVING HER ARM AT A SWATH OF CLOTHING RACKS JUST INSIDE THE ENTRANCE OF A SEARS STORE IN SUBURBAN CHICAGO AND THE NICE THING ABOUT IT SHE CONTINUES IS THAT IT'S ALL SELLING FINGERING A LIGHT COTTON SWEATER ON ONE RACK SHE ADDS WE SOLD 20000 OF THESE NATIONWIDE LAST WEEK SEARS WAS ABLE TO BRING OUT THE SPRING MERCHANDISE EARLY BECAUSE ITS WINTER MERCHANDISE SOLD QUICKLY BUT RETAIL EXECUTIVES SEE MORE THAN THE LAW OF SUPPLY AND DEMAND AT WORK HERE IN TIMES OF ECONOMIC PROSPERITY CONSUMERS BUY FASHIONABLE CLOTHING AT A GREATER CLIP AND END UP SPENDING MORE MONEY ON IT MS BERN SAYS WHAT'S MORE RETAIL ANALYSTS SAY THE RELATIONSHIP BETWEEN BUYERS AND SELLERS IS CHANGING NOW THAT RETAILERS ARE STRONGER JOHN B GIFFORD A MARKETING PROFESSOR AT MIAMI UNIVERSITY IN OXFORD OHIO POINTS TO RETAILERS' GROWING ABILITY TO BRING LOWERCOST GOODS TO MARKET WITHOUT DEEP DISCOUNTING AS WELL AS THE STRONGER BUYING POWER OF CONSUMERS JUST CONSIDER THE MOUNTAIN OF LIGHT COTTON SWEATERS THAT SEARS SOLD THE ASKING PRICE A MERE 10 EACH THAT'S BECAUSE SEARS LIKE MANY RETAILERS OVER THE LAST THREE YEARS HAS WORKED WITH ITS SUPPLIERS TO BRING LOWERCOST GOODS TO MARKET SEARS HAS MANAGED TO NEGOTIATE A LOWER WHOLESALE PRICE FROM THE FACTORY THAT MAKES THE SWEATER BECAUSE THE PLANT CAN PRODUCE THOUSANDS OF THE ITEM BEFORE EVEN CHANGING THE COLOR OF THE YARN USED THE BIG RETAILER HAS MADE THESE SORTS OF ARRANGEMENTS IN THE PAST BUT IS NOW MAKING MANY MORE OF THEM IN ADDITION TO COST CUTTING RETAILERS HAVE LEARNED TO LIVE OFF LOWER PROFIT MARGINS SAYS MR GIFFORD THE RESULT HE SAYS IS LIKELY TO BE RESISTANCE BY RETAILERS TO SLASHING PRICES AS DEEPLY AS THEY HAVE IN RECENT YEARS OF COURSE MANY BARGAINHUNGRY SHOPPERS ARE LIKELY TO ENTER THIS NEW ERA SCRATCHING AND SCREAMING I NEVER BUY ANYTHING THAT ISN'T ON SALE ASSERTS REBECCA STAAT OF CRYSTAL LAKE ILL AS SHE TROLLS THE WOODFIELD MALL FOR BARGAINS IF THEY STOPPED HAVING SALES I DON'T KNOW WHAT I'D DO I GUESS I'D HAVE TO STOP SHOPPING EVEN MR SHAPIRO THE CONSUMER RESEARCHER AGREES IT WILL TAKE SOME TIME TO WEAN CONSUMERS FROM THEIR SALESCONSCIOUS WAYS THAT INCLUDES HIM WHILE CHRISTMAS SHOPPING HE SPIED A 75 WATCH AT AN EDDIE BAUER STORE BUT WAITED TO BUY IT HE FIGURED IT WOULD FALL IN PRICE AFTER THE HOLIDAYS TO CLOSER TO 40 HE WAS MISTAKEN THOUGH THE PRICE CAME DOWN ONLY 10 SAYS MR SHAPIRO I DIDN'T BUY THE WATCH 9301270014 930127 WHO'S NEWS GEORGIAPACIFIC'S CORRELL IS EXPECTED TO BE NAMED TO SUCCEED HAHN AS CEO BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA T MARSHALL HAHN JR OF GEORGIAPACIFIC CORP PLANS TO NOMINATE AD PETE CORRELL PRESIDENT AND CHIEF OPERATING OFFICER TO SUCCEED HIM AS CHIEF EXECUTIVE OFFICER LATER THIS YEAR ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE COMPANY'S DIRECTORS ARE LIKELY TO APPROVE THE CHOICE DURING A MEETING TODAY MR CORRELL'S SUPPORTERS SAY MR CORRELL 51 YEARS OLD ROSE ABOVE THREE EXECUTIVES WITH LONGER TENURE AT THE COMPANY TO BECOME PRESIDENT IN 1991 AND HE IS A 26YEAR VETERAN OF THE PAPER INDUSTRY ON WHICH GEORGIAPACIFIC INCREASINGLY HAS STAKED ITS FUTURE HE HELPED CARRY OUT TWO BIG ACQUISITIONS AT GEORGIAPACIFIC BRUNSWICK PAPER CO IN 1988 AND GREAT NORTHERN NEKOOSA IN 1990 STILL THE COMPANY'S PULP AND PAPER DIVISION WHICH MR CORRELL HEADED FOR THREE YEARS HAS BEEN PUMMELED BY FALLING PRICES RECENTLY IT SLIPPED INTO THE RED FOR THE FIRST TIME IN MORE THAN A DECADE DURING THE FOURTH QUARTER WHILE GEORGIAPACIFIC AS A WHOLE POSTED LOWERTHANEXPECTED OPERATING EARNINGS SOME ANALYSTS HAVE PREDICTED THE COMPANY WILL POSTPONE THE ANNOUNCEMENT OF A NEW CHIEF EXECUTIVE UNTIL LATER THIS YEAR WHEN THE COMPANY'S RESULTS ARE EXPECTED TO IMPROVE AND DIRECTORS MAY ASK MR HAHN 66 TO STAY ON AS CHAIRMAN OR AS CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE AFTER HE STEPS DOWN AS CEO PEOPLE CLOSE TO THE COMPANY SAID MR HAHN CHIEF EXECUTIVE SINCE 1983 HAD ORIGINALLY PLANNED TO RETIRE FROM THE POST AT THE END OF 1991 BUT AGREED TO REMAIN AN ADDITIONAL TWO YEARS UNTIL THE ECONOMY TURNED AROUND AND GEORGIAPACIFIC FINISHED DIGESTING ITS 38 BILLION TAKEOVER OF NEKOOSA GEORGIAPACIFIC CONFIRMED THE BOARD IS SCHEDULED TO MEET TODAY BUT DECLINED TO COMMENT FURTHER MR CORRELL THROUGH A COMPANY SPOKESWOMAN ALSO DECLINED TO COMMENT MR CORRELL HAS A REPUTATION AS AN AMBITIOUS BUT PERSONABLE MANAGER WITH A LOVE FOR THE MECHANICS OF PAPERMAKING AN ENGINEER WHO ROSE THROUGH THE CORPORATE RANKS AT MEAD CORP MR CORRELL WAS HIRED AWAY BY MR HAHN IN 1988 TO HELP GEORGIAPACIFIC BALANCE ITS LARGE WOODPRODUCTS BUSINESS WITH A STRONGER PAPER BUSINESS THE ACQUISITIONS OF BRUNSWICK OF WHICH MEAD WAS PART OWNER AND NEKOOSA WERE DESIGNED TO MAKE GEORGIAPACIFIC THE LOWESTCOST PRODUCER OF PAPERRELATED COMMODITIES SUCH AS PULP AND LINERBOARD BUT THE RECESSION HAS KEPT THAT STRATEGY FROM FULLY BEARING FRUIT AND GEORGIAPACIFIC HAS HAD SOME TROUBLE INTEGRATING THE NEKOOSA OPERATIONS MR CORRELL HAS SOUGHT TO REORGANIZE GEORGIAPACIFIC'S MANAGEMENT ALONG PRODUCT LINES RATHER THAN MILLS TO PRODUCE MORE SYNERGIES THAT'S THE WAY MEAD RAN ITS BUSINESS AND HE CONVINCED MARSHALL THAT'S THE WAY IT OUGHT TO BE SAID CONRAD SCHWEITZER A FORMER GEORGIAPACIFIC EXECUTIVE MR CORRELL IS SEEN BY SOME AS A NATURAL BUILDER HE ONCE SAID HIS TOUGHEST BUSINESS DECISION WAS SELLING OFF ASSETS AT MEAD AND ONE ANALYST SAID SOME INVESTORS MAY HAVE A PREFERENCE FOR JAMES C VAN METER THE COMPANY'S 54YEAROLD VICE PRESIDENT OF FINANCE BUT MR VAN METER LIKELY IS HURT BY HIS LACK OF OPERATING EXPERIENCE ANOTHER CANDIDATE HAS BEEN DAVIS K MORTENSEN EXECUTIVE VICE PRESIDENT OF THE COMPANY'S BUILDINGPRODUCTS DIVISION WHICH IS POSTING RECORD RESULTS ON THE STRENGTH OF A POWERFUL DISTRIBUTION SYSTEM AND SOARING WOOD PRICES BUT MR MORTENSEN WHO HAS LOGGED MORE THAN 30 YEARS WITH GEORGIAPACIFIC AT 60 IS NINE YEARS OLDER THAN MR CORRELL ONE DIRECTOR SAID MR CORRELL HAS PROVED HE CAN WORK WITH THE GEORGIAPACIFIC EXECUTIVES WHO MAY BE PASSED OVER HE'S VERY MINDFUL OF HIS POSITION AS A NEWER PERSON AND HE'S DEVELOPED A FOLLOWING ON HIS OWN THE DIRECTOR SAID PEOPLE SEEMED CONTENT TO WORK FOR HIM AND NOT STAND BACK AND WAIT FOR MARSHALL HAHN TO SAY SOMETHING THAT'S WHAT EVERYONE WANTED TO OBSERVE 9301270013 930127 INTERNATIONAL BAT SETTLES WITH BELGIAN BANK LONDON EAGLE STAR THE UK GENERAL INSURANCE ARM OF BAT INDUSTRIES PLC AGREED TO PAY BELGIUM'S BANQUE BRUXELLES LAMBERT SA AS MUCH AS 875 MILLION 1361 MILLION AS PART OF THE SETTLEMENT OF A DISPUTE OVER COMMERCIALMORTGAGE INSURANCE EAGLE STAR WROTE 308 MILLION OF INSURANCE ON LOANS MADE BY BBL IN 1989 ON SIX PROPERTIES BBL CLAIMED 220 MILLION WHEN THE BORROWERS DEFAULTED THE DISPUTE CENTERED ON THE VALUATION OF THE PROPERTIES THE AMOUNT EAGLE STAR PAYS TO BBL DEPENDS ON THE RESULTS OF A JOINT UK LAWSUIT BY THE TWO COMPANIES AGAINST LEWIS & TUCKER AND JOHN D WOOD COMMERCIAL LTD ASSESSORS OF THE PROPERTIES 9301270012 930127 BUSINESS BRIEF ROCKY MOUNT UNDERGARMENT CO FIRM FILES PETITION SEEKING CHAPTER 11 REORGANIZATION ROCKY MOUNT UNDERGARMENT CO SAID IT FILED A PETITION TO REORGANIZE UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE APPAREL MANUFACTURER ALSO SAID STEPHEN GREENBERG ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED FOR PERSONAL REASONS MR GREENBERG WHO IS 29 YEARS OLD WILL BE SUCCEEDED BY HIS FATHER DAVID 56 WHO IS CURRENTLY CHAIRMAN OF THE ROCKY MOUNT NC COMPANY THE YOUNGER MR GREENBERG WHO JOINED THE COMPANY IN SEPTEMBER 1991 WILL REMAIN A DIRECTOR THE COMPANY SAID THE BANKRUPTCYLAW FILING WAS BROUGHT ON BY A NUMBER OF FACTORS INCLUDING DIFFICULTIES STEMMING FROM ITS DECEMBER 1991 ACQUISITION OF MARION ROHR AN INTIMATE APPAREL MAKER AND HIGHERTHANANTICIPATED STARTUP COSTS FOR ROCKY MOUNT'S BLOSSOM CREATIONS DAYWEAR LINE IN CONJUNCTION WITH THE FILING ROCKY MOUNT SAID IT NEGOTIATED FOR 4 MILLION IN NEW FINANCING WITH ROSENTHAL & ROSENTHAL INC NEW YORK ITS CURRENT LENDER ROCKY MOUNT SAID THE BANKRUPTCY PETITION LISTS ASSETS OF 91 MILLION AND LIABILITIES OF 53 MILLION AS OF SEPT 27 9301270011 930127 NATIONAL WESTMINSTER FORMER SUPERVISOR PLEADS GUILTY TO FRAUD TRENTON NJ A FORMER NATIONAL WESTMINSTER BANCORP INC SUPERVISOR FACES A MAXIMUM OF 30 YEARS IN FEDERAL PRISON AND 1 MILLION IN FINES FOR DEFRAUDING THE BANK ALICIA MEJIAS OF PISCATAWAY NJ WHO WAS EMPLOYED AT THE BANK'S OPERATIONS CENTER IN SOUTH PLAINFIELD NJ PLEADED GUILTY TO PROCESSING AND FUNDING CHECKS ILLEGALLY AND TO DEFRAUDING THE BANK OF 286000 BETWEEN 1985 AND 1991 THE US ATTORNEY'S OFFICE IN NEWARK NJ SAID A BANK SPOKESMAN SAID THE FRAUD WAS UNCOVERED THROUGH AN INTERNAL INVESTIGATION THE COMPANY'S PARENT IS LONDONBASED NATIONAL WESTMINSTER PLC 9301270010 930127 PEPPERAND SALT BUT I'M NOT SURE THE MEEK WILL WANT IT OR LOOK FOR AN EXCUSE I DO THINK WHY WHY 9301270009 930127 BLOATED COSTS KEEP SHEARSON FROM TAKING OFF BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHY CAN'T SHEARSON LEHMAN BROTHERS INC MAKE MONEY EVEN AS MOST OF ITS WALL STREET RIVALS REVEL IN RECORD PROFITS THE NATION'S SECONDBIGGEST BROKERAGE FIRM IS STRUGGLING THE AMERICAN EXPRESS CO UNIT MONDAY REPORTED AN UNEXPECTED FOURTHQUARTER LOSS OF 166 MILLION REFLECTING WRITEDOWNS FOR LITIGATION AND SOURED REAL ESTATE EVEN BEFORE THE WRITEDOWNS HOWEVER SHEARSON'S OPERATING PROFIT WAS FLAT THE DISAPPOINTING FOURTH QUARTER BROUGHT SHEARSON'S LOSS FOR 1992 TO 116 MILLION ITS 1992 OPERATING PROFIT BEFORE VARIOUS CHARGES WAS JUST 204 MILLION ABOUT HALF 1991 OPERATING PROFIT OF 410 MILLION BY CONTRAST MANY WALL STREET COMPETITORS REPORTED RECORD EARNINGS FOR THE YEAR AMID A HUGE BOOM IN STOCK AND BOND UNDERWRITING AND TRADING MERRILL LYNCH & CO FOR INSTANCE HAD RECORD EARNINGS OF 894 MILLION WHAT IT BOILS DOWN TO IS A COMBINATION OF TOO MANY NEW PEOPLE AND TOO MUCH MONEY BEING PAID TO THE PEOPLE WHO ARE THERE SAYS GUY MOSZKOWSKI A BROKERAGE ANALYST AT SANFORD C BERNSTEIN & CO THE COSTCUTTING LESSON THAT OTHER FIRMS LEARNED HASN'T BEEN TAKEN INTO ACCOUNT AT SHEARSON HE SAYS I THINK IT WILL NOW INDEED SHEARSON'S SENIOR EXECUTIVES ARE DISCUSSING SOME TOUGH MEDICINE THESE INCLUDE POSSIBLE LAYOFFS AND FURTHER WRITEDOWNS ALTHOUGH THE EXECUTIVES STRESS THAT THEY HAVEN'T YET SET THEIR PLANS SHEARSON'S EARNINGS ARE TOO LOW A SENIOR SHEARSON EXECUTIVE SAYS WE KNOW THAT AND THE ANALYST COMMUNITY KNOWS IT SHEARSON'S PALTRY RESULTS ARE A BLOW TO AMERICAN EXPRESS FOR MONTHS THE FINANCIALSERVICES CONCERN HAS TAKEN STEPS TO SHORE UP SHEARSON'S EQUITY CAPITAL TO PAVE THE WAY FOR A POSSIBLE PUBLIC STOCK OFFERING OF A MAJOR SHEARSON STAKE BUT CREDITRATING AGENCIES WON'T RAISE SHEARSON'S RATINGS WITH SUCH ERRATIC EARNINGS WALL STREET EXECUTIVES SAY STAFF AND SHEARSON STILL NEEDS TO BOOST ITS CAPITAL BY 500 MILLION OR MORE ANALYSTS SAY TO LIFT ITS TANGIBLE EQUITY CAPITAL OR EQUITY MINUS GOODWILL TO MORE THAN 2 BILLION FROM THE CURRENT 15 BILLION THAT'S WHAT WOULD BE NEEDED FOR SHEARSON TO GET A SINGLEA CREDIT RATING WHICH THE FIRM SAYS IS NECESSARY TO PULL OFF A PUBLIC OFFERING UNTIL THEN SHEARSON EXECUTIVES SAY PLANS FOR THE PUBLIC OFFERING ARE BEING PUSHED BACK WE HAVE A LOT OF WORK TO DO BEFORE GETTING TO THE GOAL LINE A SENIOR SHEARSON EXECUTIVE SAYS SHEARSON EXECUTIVES FOR THEIR PART BLAME THE FIRM'S POOR 1992 RESULTS LARGELY ON WRITEDOWNS AND THE FACT THAT THE FIRM IS PAYING CORPORATE TAXES AT A RELATIVELY HIGH RATE COMPARED WITH A TAX BENEFIT IN 1991 THE EXECUTIVES ALSO CITE SHEARSON'S LOW CAPITAL LEVELS WHICH EFFECTIVELY LEAD THE FIRM TO PAY MORE TO BORROW TO SUPPORT ITS DAILY OPERATIONS THAT DOESN'T FULLY EXPLAIN SHEARSON'S MEAGER OPERATING PROFIT HOWEVER THE POOR FOURTHQUARTER RESULTS STEMMED IN PART FROM A 45 PLUNGE IN INVESTMENTBANKING REVENUE AND FLAT COMMISSION REVENUE DESPITE THAT COMPENSATION EXPENSES IN THE QUARTER JUMPED 65 MILLION FROM A YEAR EARLIER SHEARSON'S FOURTHQUARTER RESULTS HELPED LEAD TO THE DEMOTION OF FORMER SHEARSON CHAIRMAN HOWARD L CLARK JR PEOPLE FAMILIAR WITH THE FIRM SAID THERE HAS ALSO BEEN WIDESPREAD SPECULATION THAT THE MOVE WAS AIMED AT PUNISHING HIS FATHER HOWARD L CLARK SR WHO OPPOSED AMERICAN EXPRESS CHAIRMAN JAMES D ROBINSON III IN HIS SEARCH FOR A SUCCESSOR AS CHIEF EXECUTIVE OFFICER MR CLARK HAD BEEN HAILED AS SHEARSON'S MR FIXIT WHEN HE WAS APPOINTED TO THE POST THREE YEARS AGO MONDAY HE WAS DEMOTED TO VICE CHAIRMAN ONLY LAST WEEK SHEARSON'S NEWLY APPOINTED COPRESIDENTS J TOMILSON HILL AND RICHARD FULD TOLD TOP SHEARSON EXECUTIVES THEY WOULD BE SHEARSON'S MAIN DRIVERS AT THE DINNER MEETING OF SHEARSON'S MANAGING DIRECTORS THE TWO EXECUTIVES TALKED ABOUT THEIR PLANS TO TURN SHEARSON AROUND NOW MESSRS HILL AND FULD WILL REPORT TO MR ROBINSON WHO WAS UNEXPECTEDLY NAMED MONDAY AS SHEARSON'S CHAIRMAN SOME SHEARSON EXECUTIVES SAY THEY EXPECT MR ROBINSON TO BE IN THE NEW POSITION FOR A FEW YEARS OTHERS AREN'T SO SURE SAYS A WALL STREET EXECUTIVE JIM DIDN'T SPEND 15 YEARS AT AMERICAN EXPRESS TO SPEND THE REST OF HIS LIFE AS CHAIRMAN AND CEO OF SHEARSON LEHMAN BROTHERS 9301270008 930127 WHO'S NEWS EARTH TECHNOLOGY CORP EARTH TECHNOLOGY CORP LONG BEACH CALIF DIANE C CREEL PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MS CREEL 44 YEARS OLD SUCCEEDS RICHARD DADAMO 64 WHO WAS APPOINTED CHIEF EXECUTIVE OFFICER IN MARCH 1992 AS PART OF A MANAGEMENT TRANSITION HE CONTINUES AS A DIRECTOR OF THIS ENVIRONMENTAL CONSULTING SERVICES CONCERN MS CREEL WHO ALSO HELD THE TITLE OF CHIEF OPERATING OFFICER IS SUCCEEDED IN THAT POSITION BY RICHARD R PANNELL 39 FORMERLY EXECUTIVE VICE PRESIDENT OF OPERATIONS 9301270007 930127 FINANCING BUSINESS LORAL CORP LORAL CORP NEW YORK SAID IT WILL REDEEM ON FEB 25 110 MILLION OF THE 200 MILLION OUTSTANDING OF ITS 105 SUBORDINATED DEBENTURES DUE JUNE 1 2017 THE REDEMPTION PRICE WILL BE 107875 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE MOVE IS PART OF A PROGRAM TO RESTRUCTURE ITS DEBT LORAL WILL FUND THE REDEMPTION USING CASH GENERATED FROM OPERATIONS THROUGH THE FOURTH QUARTER OF 1992 IT ALSO PLANS TO REDEEM THE REST OF THE 200 MILLION ISSUE WITH CASH FROM OPERATIONS 9301270006 930127 OTC FOCUS INDEX INCHES UP 003 DESPITE BOUT OF LATE SELLING SOFTNESS IN BONDS HURTS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET MAINTAINED A SLIGHT GAIN AFTER HEAVY SELLING DURING THE LAST HOUR OF TRADING THE NASDAQ COMPOSITE INDEX EDGED UP 021 OR 003 TO A RECORD 70716 ADVANCING ISSUES OUTNUMBERED DECLINERS 1419 TO 1225 ON TOTAL VOLUME OF 2963 MILLION SHARES UP FROM MONDAY'S 2646 MILLION THE MARKET WHICH HAD BEEN SOARING DURING THE MORNING FINALLY BUCKLED UNDER THE PRESSURE OF LOWER BOND PRICES THE OTC MARKET SUFFERED WHEN THE BOND MARKET GOT SLOPPY SAID JOSEPH LOFTUS A SENIOR NASDAQ TRADER AT SHEARSON LEHMAN BROTHERS THERE WAS SOME NORMAL PROFITTAKING MIXED WITH A LOT OF INVESTORS STILL BUYING MR LOFTUS SAID BIOTECHNOLOGY COMPANIES FELL THE MOST UNDER THE SELLING SYNERGEN TUMBLED 4 1/4 TO 56 3/4 BIOGEN DROPPED 2 1/4 TO 38 1/2 AND AMGEN SLID 2 1/4 TO 63 3/4 GEORGE BROWN VICE PRESIDENT EQUITY TRADING AT KIDDER PEABODY SAID THAT ALTHOUGH THE SELLOFF IN THE BIOTECHS WAS UGLY MOST OF THE ACTIVITY WAS JUST A SLIGHT PULLBACK THE NASDAQ HAS BEEN ON A ROCKET SHIP I WOULD SAY THE MARKET IS GETTING A LITTLE TIRED MR BROWN SAID LARGE TECHNOLOGY STOCKS WHICH HAD LED THE MARKET UPWARD DURING THE MORNING FINISHED MIXED MICROSOFT SLIPPED 1/2 TO 88 SUN MICROSYSTEMS DROPPED 1 TO 39 1/4 AND NOVELL EASED 1/4 TO 31 THE HUGE SEMICONDUCTOR COMPANY INTEL HELD ON TO ITS GAINS FINISHING UP 1 3/4 TO 114 3/8 ADOBE SYSTEMS ROSE 1/4 TO 43 1/4 AND DELL COMPUTER ADVANCED 7/8 TO 49 3/8 MR BROWN SAID INVESTORS ARE BECOMING NERVOUS WE HAVEN'T SEEN A SIGNIFICANT SELLOFF IN NASDAQ THAT HAS LASTED MORE THAN TWO OR THREE DAYS THAT HAS TO END SOMETIME STEEL OF WEST VIRGINIA ROSE 1/2 TO 11 1/4 ON MONDAY FOUR MILLION COMMON SHARES WERE PRICED AT 10 THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER IN ITS FILING THE COMPANY SAID IT WOULD SELL 13 MILLION OF THE SHARES AND A GROUP OF STOCKHOLDERS WOULD SELL THE REST TOPPS CO DROPPED 3 3/4 TO 8 1/2 ON HEAVY VOLUME OF 37 MILLION SHARES AFTER THE NEW YORK BUBBLE GUM AND SPORTS CARD COMPANY PROJECTED A LOSS FOR ITS FOURTH QUARTER ENDING NEXT MONTH IT SAID SHRINKING DEMAND FOR COLLECTORS' CARDS DEPRESSED ITS SHIPMENTS IN THE QUARTER OTHER BASEBALL CARDRELATED STOCKS SLID SHARES OF CHERRY HILL NJBASED SCORE BOARD LOST 1 1/2 TO 22 1/2 ON THE BIG BOARD THE STOCK OF MARVEL ENTERTAINMENT MAKER OF FLEER BRAND CARDS TUMBLED 3 1/4 TO 24 7/8 SHARES OF SPORTSTOWN A NORCROSS GA SPORTING GOODS RETAILER DROPPED 2 3/4 TO 9 1/2 AFTER PRUDENTIAL SECURITIES ANALYST L WAYNE HOOD DOWNGRADED HIS RATING ON THE STOCK TO HOLD FROM BUY HE CITED CONCERN ABOUT COMPETITION IN THE ATLANTA AREA WHERE SPORTSTOWN HAS FIVE STORES AND MIGHT OPEN MORE SIERRA SEMICONDUCTOR CLIMBED 2 3/4 TO 14 IT POSTED FOURTHQUARTER NET INCOME OF 19 CENTS A SHARE DOWN FROM 37 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED THE SAN JOSE CALIF COMPANY TO EARN JUST 12 CENTS A SHARE IN THE LATEST PERIOD ACCORDING TO IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WHENISSUED SHARES OF ORION PICTURES GAINED 3/4 TO 3 1/4 THE FILM MAKER'S EFFORTS TO RECOVER FROM A BANKRUPTCY FILING WERE HIGHLIGHTED IN YESTERDAY'S WALL STREET JOURNAL THE COMPANY EMERGED FROM BANKRUPTCY PROCEEDINGS TWO MONTHS AGO ITS COMMON HAS BEEN TRADING ON A WHENISSUED BASED SINCE NOVEMBER QUALITY FOOD CENTERS INCREASED 2 3/4 TO 35 3/4 THE BELLEVUE WASH SUPERMARKET COMPANY REPORTED FOURTHQUARTER NET INCOME OF 42 CENTS A SHARE UP FROM 35 CENTS A SHARE A YEAR AGO ANALYSTS SURVEYED BY IBES HAD PROJECTED EARNINGS OF ABOUT 41 CENTS IN THE LATEST PERIOD TELIOS PHARMACEUTICALS LOST 3/4 TO 6 AN OFFERING OF FOUR MILLION ADDITIONAL SHARES OF ITS COMMON HAS BEEN MADE AT 6 EACH THE SAN DIEGOBASED BIOTECHNOLOGY COMPANY SAID IT WILL USE THE OFFERING PROCEEDS TO FINANCE RESEARCH PEOPLES WESTCHESTER SAVINGS BANK JUMPED 3 TO 36 THE HAWTHORNE NY COMPANY SAID ITS BOARD REJECTED AN OFFER FROM AN INVESTMENT GROUP LAST WEEK TO ACQUIRE THE COMPANY AT 30 A SHARE PEOPLES WESTCHESTER SAID THE GROUP WHICH INCLUDES CHARTWELL ASSOCIATES AND INVESTOR IRWIN JACOBS MAY BE WILLING TO INCREASE ITS BID DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9301270005 930127 LAW FBI REACHES PACT WITH BLACK AGENTS ON BIAS CHARGES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL BUREAU OF INVESTIGATION AND ITS BLACK AGENTS HAVE REACHED AN AGREEMENT TO SETTLE CHARGES THAT THE AGENCY PRACTICED DISCRIMINATION UNDER THE SETTLEMENT THE AGENCY HAS AGREED TO PROMOTE SIX BLACK AGENTS TO SUPERVISORY POSITIONS WHILE 13 WILL BECOME PRINCIPAL RELIEF SUPERVISORS IN ADDITION ANOTHER 97 BLACK AGENTS WILL BE ASSIGNED TO JOBS OR TRAINING PROGRAMS THAT ARE CONSIDERED DESIRABLE EITHER BECAUSE OF THEIR LOCATION OR BECAUSE THEY ARE ON A PROMOTION TRACK THE AGREEMENT WHICH WILL BE MONITORED FOR COMPLIANCE STILL HAS TO BE APPROVED BY THE FEDERAL COURT DAVID SHAFFER ATTORNEY FOR THE BLACK AGENTS SAID HIS CLIENTS ARE VERY STRONGLY BEHIND THE AGREEMENT HE NOTED THAT THE AGENTS WON'T RECEIVE A MONETARY REWARD OTHER THAN BACK PAY WHICH THEY PLAN TO DONATE TOWARD THE COSTS OF MONITORING THE AGREEMENT THE ATTORNEY SAID THAT BLACKS HOLD ONLY ABOUT 5 OF THE JOBS AT THE LOWEST SUPERVISORY LEVEL AND THAT THE PERCENTAGE DROPS SHARPLY AS THE LEVELS RISE IN ADDITION THE SETTLEMENT ALSO CALLS ON THE FBI TO HIRE OUTSIDE CONSULTANTS TO RECOMMEND CHANGES IN THE WAY AGENTS ARE SELECTED PROMOTED REVIEWED AND DISCIPLINED THE AGENCY MUST ALSO ADOPT MEASURES TO PREVENT DISPARITIES IN AWARDS AND BONUSES THE SETTLEMENT WAS ANNOUNCED AT A JUSTICE DEPARTMENT NEWS CONFERENCE BY ACTING ATTORNEY GENERAL STUART GERSON FBI DIRECTOR WILLIAM SESSIONS WHO IS FIGHTING ETHICAL VIOLATION ALLEGATIONS WAS ASKED NOT TO ATTEND MR GERSON CLAIMED THAT BECAUSE OF THE CONTROVERSY OVER THE ALLEGATIONS WE'D NEVER GET OFF THESE ETHICAL MATTERS IF THE FBI DIRECTOR HAD ATTENDED MR SESSIONS HAS LINKED A JUSTICE DEPARTMENT REPORT TO AN EFFORT BY FORMER ATTORNEY GENERAL WILLIAM BARR TO DISCREDIT THE FBI DIRECTOR THE REPORT ACCUSED MR SESSIONS AMONG OTHER THINGS OF MISUSING TRAVEL PRIVILEGES GREATLY EXCEEDING THE BUDGET FOR PERSONAL OFFICE REDECORATION AND USING GOVERNMENT FUNDS TO PAY FOR A FENCE AT HIS HOME THAT DECREASES RATHER THAN INCREASES SECURITY LAST SATURDAY THE FBI DIRECTOR COMPLAINED TO REPORTERS THAT HE SENT THE COMPLETED AGREEMENT TO MR BARR WEEKS AGO BUT THAT HE REFUSED TO SIGN IT MR GERSON WHO WILL REMAIN IN HIS POST UNTIL A SUCCESSOR IS CONFIRMED BY THE SENATE DENIED THAT ALLEGATION HE SAID THAT HE HIMSELF HELD UP THE SETTLEMENT WHICH WAS TENTATIVELY AGREED TO IN APRIL SO THAT QUESTIONS CONCERNING THE JUDICIAL OVERSIGHT OF THE AGREEMENT COULD BE RESOLVED MR GERSON WHO WAS AN ASSISTANT ATTORNEY GENERAL UNDER MR BARR SAID MR BARR DIDN'T ATTEMPT TO CHANGE THE BASIC PROVISIONS IN THE AGREEMENT 9301270004 930127 INTERNATIONAL HANSON PLC DEFENDS NEW COAL ACQUISITION AT ANNUAL MEETING LONDON HANSON PLC AT ITS ANNUAL MEETING DEFENDED ITS RECENT LARGE COAL ACQUISITION AND SAID IT IS FORMULATING A PLAN TO ALLOW FOR STOCK AS WELL AS CASH DIVIDENDS THE COMPANY NOW PAYS DIVIDENDS ONLY IN CASH LORD HANSON CHAIRMAN OF THE ANGLOAMERICAN INDUSTRIAL CONGLOMERATE ALSO SAID HANSON'S PROFIT RECOVERY WILL TRAIL AN EXPECTED ECONOMIC RECOVERY IN THE UK AND US DUE TO THE AMOUNT OF PRODUCT IN THE PIPELINE HANSON IS SEEING SIGNS OF IMPROVED ORDERS HE SAID A PROVISION ALLOWING THE COMPANY TO PAY STOCK DIVIDENDS WILL BE SOUGHT AT THE NEXT SHAREHOLDERS' MEETING HOLDERS WOULD HAVE THE OPTION OF PAYMENT IN EITHER STOCK OR CASH HANSON HAS FINALIZED ITS PROPOSAL TO SWAP GOLD ASSETS OF ITS US UNIT GOLD FIELDS MINING CORP FOR THE COAL AND QUARRY ASSETS OF SANTA FE MINERALS CORP A UNIT OF SANTA FE PACIFIC CORP SCHAUMBURG ILL HANSON SAID IT EXPECTS NO SIGNIFICANT GAIN OR LOSS FROM THE SWAP THE SANTA FE MINES AND QUARRIES ARE VALUED AT ABOUT 131 MILLION AND THE HANSON GOLD ASSETS HAVE A VALUE OF ABOUT 150 MILLION ONE SHAREHOLDER AT THE MEETING SAID THAT THE RATIO OF PROFIT TO CAPITAL EMPLOYED BY COAL IS POOR COMPARED WITH THAT OF HANSON'S IMPERIAL TOBACCO FOR EXAMPLE BUT LORD HANSON THE CHAIRMAN SAID WE ARE CONFIDENT OUR RESOURCES WILL INCREASE IN VALUE WE BELIEVE COAL HAS A GREAT FUTURE WHILE SAYING THE COMPANY IS INTERESTED IN FURTHER ACQUISITIONS LORD HANSON WOULDN'T COMMENT ON WHETHER IT IS INTERESTED IN BIDDING FOR ALL OR PARTS OF BRITISH COAL WHICH IS EXPECTED TO BE PRIVATIZED BY THE UK GOVERNMENT HE ALSO DEFENDED THE COMPANY'S FAILURE TO WIN RANK HOVIS MCDOUGALL PLC FROM ITS RIVAL BIDDER TOMKINS PLC LAST FALL PAYING TOO MUCH HAS NEVER BEEN OUR STYLE THE CHAIRMAN SAID SOME SAW OUR WITHDRAWAL AS A DEFEAT I SEE IT AS A VICTORY FOR COMMON SENSE 9301270003 930127 USX HAD 343 MILLION 4THPERIOD LOSS ARMCO TO RECORD CHARGE PLANS LAYOFFS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL USX CORP REPORTED A FOURTHQUARTER LOSS OF 343 MILLION LARGELY BECAUSE OF CHARGES AT US STEEL WHILE FELLOW STEELMAKER ARMCO INC WILL TAKE CHARGES OF MORE THAN 300 MILLION AND CUT ITS WORK FORCE BY 12 THE HOUSECLEANING BY USX AND ARMCO THE NATION'S NO 1 AND NO 6 STEEL PRODUCERS RESPECTIVELY CAPS AN ALREADY MISERABLE 1992 BUT PAVES THE WAY FOR AN IMPROVED 1993 THE INDUSTRY EXPECTS THE COMMERCE DEPARTMENT TODAY TO IMPOSE FEES AVERAGING MORE THAN 20 ON ABOUT 35 BILLION OF FOREIGN STEEL THAT US PRODUCERS SAY HAS BEEN SOLD IN THIS COUNTRY AT UNFAIRLY LOW PRICES MOREOVER STEELMAKERS ARE PLANNING A SECONDQUARTER PRICE INCREASE AND HAVE BEEN SEEING IMPROVED ORDER RATES USX CHAIRMAN CHARLES A CORRY SAID HE IS OPTIMISTIC ABOUT BETTER RESULTS IN THE FIRST HALF OF 1993 ARMCO BASED IN PARSIPPANY NJ EXPECTS TO REPORT ITS FOURTHQUARTER RESULTS NEXT WEEK IT SAID IT WILL TAKE A CHARGE OF 188 MILLION OR 182 A SHARE TO TRIM ITS WORK FORCE AND GET OUT OF CERTAIN BUSINESSES THE COMPANY SAID THE MOVES ARE EXPECTED TO BOOST 1993 OPERATING PROFIT BY ABOUT 40 MILLION ARMCO WILL CUT 1400 JOBS SPLIT EQUALLY BETWEEN HOURLY AND SALARIED POSITIONS THE COMPANY SAID IT WILL PUT ITS CYTEMP SPECIALTY STEEL UNIT ON THE BLOCK CLOSE A MELT SHOP IN BALTIMORE AND CLOSE OR SELL CERTAIN FABRICATING AND PROCESSING BUSINESSES THEY'RE CUTTING THE BARNACLES OFF AND LEAVING THE SOLID PROFITABLE OPERATIONS SAID SALOMON BROTHERS ANALYST MICHELLE APPELBAUM ARMCO WILL ALSO RECORD ITS SHARE OF PREVIOUSLY ANNOUNCED CHARGES FROM ITS ARMCO STEEL CO JOINT VENTURE WITH JAPAN'S KAWASAKI STEEL CORP THE US COMPANY SAID ITS SHARE COULD BE AS MUCH AS 168 MILLION ANALYSTS EXPECT THE FIGURE TO BE ABOUT 150 MILLION ARMCO SHARE OF THE CHARGES WHICH ARE ALSO TO CUT JOBS AND TO CLOSE CERTAIN FACILITIES WOULD WIPE OUT ITS ENTIRE INVESTMENT IN THE VENTURE ALLOWING ARMCO TO STOP RECORDING THE VENTURE'S LOSSES HOWEVER A SPOKESMAN SAID THE COMPANY ISN'T ABANDONING THE VENTURE AND PLANS TO KEEP ITS 50 STAKE USX'S US STEEL UNIT HAD A FOURTHQUARTER LOSS OF 225 MILLION OR 380 A SHARE WIDER THAN THE LOSS OF 165 MILLION OR 325 A SHARE A YEAR EARLIER THE LATEST PERIOD INCLUDED PRETAX CHARGES OF 231 MILLION FOR RESTRUCTURING LOAN LOSSES AND VARIOUS LIABILITIES INCLUDING 117 MILLION RELATED TO AN ARBITRATOR'S JUDGMENT AGAINST THE COMPANY OVER A NATURAL GAS CONTRACT EVEN WITHOUT THE CHARGE WHICH SALOMON'S MS APPELBAUM SAID WAS EQUIVALENT TO 169 MILLION OR 284 A SHARE US STEEL'S LOSS WAS HIGHER THAN MANY ANALYSTS EXPECTED THE COMPANY BLAMED LOW STEEL PRICES AND A SHIFT TO LOWEREND PRODUCTS A YEAR AGO US STEEL HAD PRETAX CHARGES OF 129 MILLION SALES IN THE QUARTER FELL TO 124 BILLION FROM 131 BILLION AS SHIPMENTS SLID TO 2283000 TONS FROM 2456000 TONS USX'S MARATHON OIL UNIT HAD A FOURTHQUARTER LOSS OF 120 MILLION OR 42 CENTS A SHARE WHILE THIS WAS ONLY ABOUT HALF OF THE YEAREARLIER LOSS OF 229 MILLION OR 90 CENTS A SHARE THE IMPROVEMENT CAME FROM SMALLER INVENTORYRELATED CHARGES MARATHON SAID IT CONTINUES TO EXPERIENCE LOW PRICES AND DEPRESSED PROFIT MARGINS SALES FELL TO 324 BILLION FROM 357 BILLION USX'S FOURTHQUARTER LOSS WAS 17 LARGER THAT THE YEARAGO LOSS OF 294 MILLION FOR ALL OF 1992 PITTSBURGHBASED USX HAD A LOSS OF 183 BILLION INCLUDING PREVIOUSLY ANNOUNCED NONCASH CHARGES OF 167 BILLION TO ADOPT NEW ACCOUNTING RULES FOR INCOME TAXES AND RETIREE HEALTH BENEFITS IN 1991 USX HAD A LOSS OF 578 MILLION 9301270002 930127 COMMODITIES OIL MARKET RALLY BEGINS TO ABATE BUT PROSPECT OF OPEC OUTPUT CUTS KEEPS MOST PRICES FIRM BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THIS WEEK'S EXPLOSIVE RALLY IN WORLD OIL MARKETS BEGAN TO FADE ALTHOUGH PROSPECTS OF PRODUCTION CUTS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES KEPT MOST PRICES RELATIVELY FIRM CRUDE PRICES WERE MIXED TO FLAT BUT DESPITE PROFITTAKING THEY HELD MOST OF MONDAY'S GAINS AS ALIRIO PARRA OPEC'S PRESIDENT CONTINUED HIS MIDDLE EAST TOUR OF MEMBER NATIONS SEEKING CONSENSUS ON OUTPUT REDUCTIONS PRICES OF HEATING OIL STRENGTHENED FURTHER IN BOTH THE US AND EUROPE MEANWHILE AS TRADERS AWAITED THE LATEST INDUSTRY REPORT ON US INVENTORIES WHICH WAS EXPECTED TO SHOW A BIG DECLINE IN STOCKS OF DISTILLATE FUELS IN NEW YORK FUTURES TRADING LIGHT LOWSULFUR CRUDE FOR MARCH DELIVERY REMAINED ABOVE THE PSYCHOLOGICALLYIMPORTANT LEVEL OF 1950 A BARREL TO SETTLE AT 1964 DOWN TWO CENTS FOR THE DAY IN LONDON BRENT BLEND FUTURES WERE MIXED IN ACTIVE TRADING WITH THE MARCH CRUDE CONTRACT DROPPING FOUR CENTS TO 1803 A BARREL IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE UNLEADED GASOLINE FOR FEBRUARY DELIVERY WHICH REGISTERED SIZZLING GAINS ON MONDAY FELL 064 CENT TO 5489 CENTS A GALLON BUT FEBRUARY HEATING OIL ROSE 068 CENT TO 5524 CENTS AFTER MONDAY'S SHARP RALLY BASED ON OPEC MANIA THE CRUDE MARKET NEEDED A BREATHER SAID NAUMAN BARAKAT A MERRILL LYNCH ENERGY FUTURES VICE PRESIDENT BUT THERE WAS GOOD SUPPORT IN HEATING OIL ON ANTICIPATION THAT THERE WOULD BE A BIG DRAW IN INVENTORIES THE WEEKLY REPORT ON US OIL STATISTICS WHICH WAS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AFTER FUTURES TRADING CLOSED DID SHOW INVENTORY CHANGES GENERALLY IN LINE WITH INDUSTRY EXPECTATIONS INVENTORIES OF DISTILLATE FUELS WHICH INCLUDE HEATING OIL DECLINED 29 MILLION BARRELS LAST WEEK FROM THE LEVEL OF THE PRECEDING WEEK WHILE GASOLINE STOCKS ROSE NEARLY 32 MILLION BARRELS US CRUDE OIL INVENTORIES DROPPED 11 MILLION BARRELS THERE WAS LITTLE FURTHER OPEC NEWS YESTERDAY AFTER THE WEEKEND DEVELOPMENTS INCLUDING SAUDI ARABIA'S RECOMMENDATION OF A CUT OF ONE MILLION BARRELS A DAY IN THE OPEC PRODUCTION CEILING THAT TRIGGERED MONDAY'S RALLY BUT AFTER REACHING THE UNITED ARAB EMIRATES MR PARRA WHO ALSO IS VENEZUELA'S OIL MINISTER DID SAY THAT HE WOULD LIKE TO SEE OPEC BEGIN A PRODUCTION CUT AS SOON AS POSSIBLE THAT IS BY MARCH 1 RATHER THAN WAITING UNTIL THE SECOND QUARTER IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES EXTENDED THEIR RECENT RALLY ENDING 230 AN OUNCE HIGHER FOR FEBRUARY DELIVERY ON MOSTLY TECHNICAL FACTORS ANALYSTS AND TRADERS SAID THE ACTIVELY TRADED FEBRUARY GOLD FUTURES CONTRACT SETTLED AT 33110 ON THE NEW YORK COMMODITY EXCHANGE UP SHARPLY FROM RECENT LIFEOFCONTRACT LOWS OF AROUND 32800 AN OUNCE ANALYSTS NOTED THAT GOLD'S FIRMER STANCE CAME DESPITE A GENERALLY STRONGER PERFORMANCE BY THE DOLLAR TYPICALLY GOLD AND THE DOLLAR MOVE IN OPPOSITE DIRECTIONS THERE WAS TALK THAT A MIDDLE EAST SYNDICATE WAS A FEATURED BUYER IN THE SPOT MARKET WHICH HELPED PUSHED FUTURES PRICES HIGHER SAID FRED DEMLER A SENIOR METALS ECONOMIST FOR PAINEWEBBER THERE WAS MOSTLY TECHNICAL BUYING IN THE MARKET SAID MR DEMLER HE SAID GOLD'S CLIMB ABOVE THE 33050ANOUNCE RESISTANCE LEVEL WAS SEEN AS A BULLISH TECHNICAL MOVE TECHNICAL BUYING OR SELLING REFERS TO MAKING BETS ON PRICE MOVEMENTS BASED ON HISTORICAL PRICE TRENDS ANALYSTS SAID THAT GOLD'S ROBUST PERFORMANCE PULLED OTHER PRECIOUS METALS HIGHER SILVER FOR MARCH DELIVERY SETTLED AT 3702 AN OUNCE UP NINE CENTS PLATINUM FOR APRIL DELIVERY FINISHED AT 36520 AN OUNCE UP 140 PALLADIUM FOR MARCH DELIVERY MOVED UP 90 CENTS TO 10815 AN OUNCE COFFEE COFFEE FUTURES PRICES SHOWED SOME SIGNS OF LIFE GAINING 185 CENTS A POUND AFTER EIGHT STRAIGHT DAYS OF DECLINE AFTER MONDAY'S MAJOR WASHOUT IT WAS TIME FOR A LITTLE BIT OF CONSOLIDATION IN THE COFFEE FUTURES MARKET SAID SANDRA KAUL A SENIOR ANALYST WITH SHEARSON LEHMAN BROTHERS ON THE COFFEE SUGAR AND COCOA EXCHANGE COFFEE FOR MARCH DELIVERY SETTLED AT 5790 CENTS A POUND IN A RALLY THAT LIFTED THE CONTRACT FROM AN EARLY MORNING LOW OF 5410 CENTS MS KAUL CAUTIONED HOWEVER THAT YESTERDAY'S POSITIVE TONE SEEMS LITTLE MORE THAN A BREATHER AND THAT THERE WAS NO FUNDAMENTAL NEWS TO BELIEVE A SUSTAINED RECOVERY WAS ON THE HORIZON COFFEE FOR MARCH DELIVERY IS WELL BELOW THE MOST RECENT HIGH OF 8355 CENTS A POUND RECORDED ON DEC 22 OVER THE PAST WEEK PRICES HAVE SLUMPED ON THE LACK OF NEWS FROM THE LONDON TALKS OF THE INTERNATIONAL COFFEE ORGANIZATION THE ORGANIZATION IS HOLDING TALKS BETWEEN PRODUCER AND CONSUMER NATIONS OVER THE ESTABLISHMENT OF A NEW EXPORTQUOTA ACCORD LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES PLUNGED AS A WEEKLONG PRICE RALLY ON THE CASH MARKET FOR PORK BELLIES CAME TO AN APPARENT END SINCE JAN 18 PORKBELLY PRICES ON THE CASH MARKET HAD RALLIED FROM ABOUT 27 CENTS TO ABOUT 35 CENTS ON MONDAY HOWEVER CASH MARKETS REPORTED LOWER PRICES YESTERDAY WHICH PUT A DAMPER ON THE FUTURES MARKET AT THE CHICAGO MERCANTILE EXCHANGE THE PRICE OF THE PORKBELLY CONTRACT FOR MARCH DELIVERY DECLINED 107 CENTS TO 3552 CENTS A POUND PRICES WERE EXPECTED TO FALL AGAIN TODAY BECAUSE OF THE RESULTS OF THE WEEKLY COLDSTORAGE REPORT WHICH IS AN INDICATOR OF CONSUMPTION OF PORK BELLIES OR UNCURED BACON MOST ANALYSTS HAD BEEN EXPECTING NET OUTWARD MOVEMENT OF 800000 TO TWO MILLION POUNDS OF PORK BELLIES FROM COLD STORAGE BUT THE NUMBER CAME IN AT 419000 POUNDS THE NUMBER WILL LIKELY BE INTERPRETED AS BEARISH BY TRADERS AT THE CHICAGO MERC SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS 9301270001 930127 TECHNOLOGY & MEDICINE KODAK STOCK EDGES UP ON EXPECTED APPROVAL OF A PATENT BY JAPAN ROCHESTER NY EASTMAN KODAK CO STOCK EDGED UP 625 CENTS YESTERDAY FOLLOWING SPECULATION THAT THE COMPANY WILL GET APPROVAL TO PATENT A MAGNETIC RECORDING TECHNOLOGY IN JAPAN THAT COULD RESULT IN SUBSTANTIAL BACK ROYALTIES FROM 23 JAPANESE MAKERS OF CAMCORDERS AND OTHER AUDIO AND VIDEO PRODUCTS THE PHOTOGRAPHY CHEMICALS AND PHARMACEUTICAL CONCERN'S STOCK CLOSED AT 50375 A SHARE IN TRADING ON THE NEW YORK STOCK EXCHANGE GOLDMAN SACHS & CO ANALYST JACK KELLY REPORTED ON THE FIRST CALL WIRE SERVICE FOR INVESTORS YESTERDAY THAT BASED ON REPORTS IN THE JAPANESE PRESS IT APPEARS KODAK COULD BE AWARDED SUBSTANTIAL ROYALTIES IF THE PATENT IS APPROVED KODAK CONFIRMED THAT SUCH A PATENT APPLICATION IS PENDING IN JAPAN BUT DECLINED TO ELABORATE BUT THE AUTHOR OF THE PATENT INVENTOR DR JAMES LEMKE OF SAN DIEGO CALIF SAID IT IS MY UNDERSTANDING FROM THE JAPANESE PATENT OFFICE THAT THE PATENT WILL BE ISSUED SHORTLY SINCE THE TECHNOLOGY IS USED IN ALMOST ALL AUDIO AND VIDEO PRODUCTS THE ROYALTIES AT STAKE ARE POTENTIALLY DOUBLE THE 400 MILLION REPORTED IN THE JAPANESE PRESS MR KELLY SAID THE TECHNOLOGY WHICH WAS PATENTED IN THE US IN 1981 USES SOCALLED MICROGAP RECORDING TECHNOLOGY TO DO HIGHDENSITY RECORDING WHICH PUTS MORE INFORMATION ON LESS TAPE THE TECHNOLOGY IS USED IN MOST CAMCORDERS HIGHPERFORMANCE TAPE RECORDERS DISK RECORDERS AND SOME VIDEO CASSETTE RECORDERS KODAK FILED A PATENT APPLICATION FOR THE TECHNOLOGY IN JAPAN IN 1980 BUT THE APPLICATION WAS SUSPENDED WHEN 23 JAPANESE ELECTRONICS COMPANIES INCLUDING SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO OBJECTED 9301260179 930126 FINANCING BUSINESS LEARNING CO LEARNING CO FREMONT CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 13 MILLION SHARES OF STOCK OF WHICH 12 MILLION WILL BE OFFERED BY THE COMPANY MORGAN STANLEY & CO WILL BE THE MAJOR MANAGER OF THE OFFERING WHOSE PROCEEDS WILL GO TO WORKING CAPITAL ROBERTSON STEPHENS & CO WILL ALSO MANAGE THE OFFERING 9301260177 930126 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC FOURTHQUARTER LOSS WIDENS TO 16 MILLION ON CHARGES CONFIRMING WARNINGS MADE EARLIER THIS MONTH ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA REPORTED A WIDER LOSS IN THE FOURTH QUARTER AS IT RECORDED 309 MILLION IN RESTRUCTURING CHARGES THE MAKER AND MARKETER OF FLOOR COVERINGS AND INDOOR FURNISHINGS REPORTED A LOSS OF 16 MILLION OR 52 CENTS A SHARE COMPARED WITH A LOSS OF 12 MILLION OR 45 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 29 TO 6001 MILLION THE COMPANY SAID THAT WITHOUT THE CHARGES RELATED TO POSTRETIREMENT BENEFITS TAX ADJUSTMENTS A PLANT CLOSING IN BELGIUM AND THE REDUCTION OF SALARIED WORKERS IT WOULD HAVE REPORTED NET INCOME FROM CONTINUING OPERATIONS OF 115 MILLION OR 18 CENTS A SHARE THE POSTRETIREMENT BENEFITS AND TAX ACCOUNTING ADJUSTMENTS TAKEN RETROACTIVELY TO JAN 1 1992 RESULTED IN A 1726 MILLION OR 464 A SHARE FULLYEAR CHARGE FOR THE YEAR THE COMPANY REPORTED ITS FIRST LOSS SINCE 1932 THE LOSS TOTALED 2342 MILLION OR 667 A SHARE COMPARED WITH EARNINGS OF 482 MILLION OR 77 CENTS A SHARE IN 1991 REVENUE ROSE 45 TO 255 BILLION 9301260176 930126 TECHNOLOGY MOTOROLA MOVES TO EASE FEARS OF SAFETY OF CELLULAR PHONES BY CITING RESEARCH BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL A MOTOROLA INC EXECUTIVE INSISTED THAT THE SAFETY OF THE COMPANY'S CELLULAR TELEPHONES IS ROOTED IN SCIENTIFIC FACT IN A NEWS BRIEFING AIMED AT EASING FEARS ABOUT THE SAFETY OF ITS CELLULAR TELEPHONES EDWARD STAIANO PRESIDENT OF MOTOROLA'S GENERAL SYSTEMS SECTOR INSISTED ALL OUR PRODUCTS ARE SAFE WE CONDUCT RESEARCH TO LOOK FOR PROBLEMS NOT TO PROVE THEY DON'T EXIST THE PRESS BRIEFING WAS CALLED FOLLOWING PUBLICITY ABOUT A LAWSUIT FILED BY DAVID REYNARD OF ST PETERSBURG FLA THAT CLAIMED A CELLULAR PHONE CAUSED HIS WIFE'S FATAL BRAIN CANCER THE SUIT FILED IN PINELLAS COUNTY CIRCUIT COURT IN FLORIDA IS SEEKING UNDISCLOSED DAMAGES FROM JAPAN'S NEC CORP WHICH MADE THE PHONE COASTAL RADIOTELEPHONE INC WHICH SOLD THE DEVICE AND GTE CORP'S CELLULAR UNIT WHICH PROVIDED THE CELLULAR PHONE SERVICE WE'RE TRYING TO CLEAR THE AIR OF A SUBJECTIVE AND EMOTIONAL RESPONSE FROM THE PUBLIC TO RECENT REPORTS OF CELLULAR PHONE SAFETY MR STAIANO SAID HE CITED THOUSANDS OF STUDIES WHICH HE SAID INDICATE SMALL RADIO PHONES CAN BE HELD AGAINST THE HEAD WITHOUT CAUSING HEALTH PROBLEMS BUT MOTOROLA EXECUTIVES CITED ONLY A SINGLE UNFINISHED STUDY AS PROOF THAT RADIO FREQUENCY WAVES OPERATING IN THE CELLULAR BAND DO NOT PROMOTE TUMOR FORMATION THAT STUDY CURRENTLY BEING CONDUCTED BY W ROSS ADEY ASSOCIATE CHIEF OF THE RESEARCH DEPARTMENT AT JL PETTIS MEMORIAL VA MEDICAL CENTER IN LOMA LINDA CALIF DEMONSTRATED THAT HUMAN CELLS IN A PETRI DISH SHOW NO ABNORMALITY AFTER BEING BOMBARDED BY RADIO WAVES IN THE CELLULAR SPECTRUM RANGING FROM 800 MILLION TO 900 MILLION CYCLES PER SECOND HOME CORDLESS PHONES USE LESS POWER AND OPERATE IN A DIFFERENT FREQUENCY BUT DR ADEY HAS SAID IT IS PREMATURE TO SAY HIS STUDY INDICATED THAT CELLULAR RADIO WAVES DO NOT PROMOTE TUMOR FORMATION HE NOTED THAT THE SECOND PART OF THE STUDY WHICH FOCUSES ON RATS WILL TAKE TWO YEARS TO COMPLETE HIS PREVIOUS STUDIES SHOWED A BREAKDOWN OF CALCIUM IN CELLS AT BOTH LOW AND HIGH FREQUENCIES SEVERAL SCIENTISTS IN THE US AND EUROPE SAID THAT THE CELLULAR INDUSTRY HAS NOT DONE ENOUGH STUDY ON THE NONTHERMAL EFFECTS OF RADIO WAVES IN THE CELLULAR BAND ON HUMAN HEALTH I THINK THERE SHOULD BE MORE STUDIES DONE ON CELLULAR SINCE NOBODY KNOWS WHAT LEVELS ARE SAFE SAID STEPHEN CLEARY A PROFESSOR OF PHYSICS AND BIOPHYSICS AT THE MEDICAL COLLEGE OF VA I DON'T THINK THE MANUFACTURERS DO NOTING THAT 10 MILLION PHONES ARE NOW IN USE AND THAT 7000 A DAY ARE BEING SOLD TO US CONSUMERS DR CLEARY SAID THERE'S A POTENTIAL FOR WIDESPREAD EXPOSURE IN HIS EXPERIMENTS DR CLEARY IRRADIATED TWO DIFFERENT TYPES OF CELLS NORMAL HUMAN LYMPHOCYTES AND GLIOMA CANCER CELLS WITH RADIO WAVES IN FREQUENCIES OF 27 MHZ AT WHICH INDUSTRIAL HEAT SEALING EQUIPMENT OPERATES AND 245 BILLIONS OF CYCLES PER SECOND GIGAHERTZ AT WHICH MICROWAVE OVENS OPERATE THE CELLS SHOWED ABNORMAL GROWTH AFTER BEING SUBJECTED TO THE RADIO WAVES FOR TWO HOURS AND HE SAID THEY WERE STILL GROWING ABNORMALLY THREE TO FIVE DAYS AFTER THE EQUIPMENT HAD BEEN TURNED OFF THE RESULTS WERE THE SAME AT BOTH FREQUENCIES HE SAID THIS COULD SUGGEST THAT THE SAME EFFECTS COULD OCCUR AT INTERMEDIATE FREQUENCIES SUCH AS CELLULAR BORJE WAMBLAD A RADIO SCIENTIST AT SWEDEN'S LM ERICSSON ONE OF THE WORLD'S LARGEST SUPPLIERS OF CELLULAR RADIO EQUIPMENT SAID THE HEAD MIGHT BE SOME SORT OF LENS THAT CONCENTRATES OR MAGNIFIES THE RADIATION TO THE BRAIN HE ADDED THAT THIS HAS LED SCIENTISTS TO TIGHTEN THE LIMITS FOR RADIO FREQUENCY EXPOSURE RESEARCHERS WORKING FOR ERICSSON HAVE ALREADY SHOWN THAT RADIO WAVES CAN BREACH THE RESILIENT BLOODBRAIN BARRIER AND MR WAMBLAD SAYS SCIENTIFIC INVESTIGATION NEEDS TO BE CONTINUED MOST OF THE PEOPLE AT THE COMPANIES ARE RADIO ENGINEERS AND SCIENTISTS AND IT'S VERY DIFFICULT TO UNDERSTAND WHAT THE BIOLOGICAL RESEARCHERS ARE TALKING ABOUT HE SAYS WE CAN'T ANSWER WHETHER IT'S DANGEROUS OR NOT CELLULAR STOCKS RECOVERED YESTERDAY AFTER PLUNGING ON FRIDAY MOTOROLA ROSE 2 TO CLOSE AT 61125 ON THE NEW YORK STOCK EXCHANGE MCCAW CELLULAR COMMUNICATIONS INC'S SHARES ROSE 2125 TO 3850 IN NATIONAL OVERTHECOUNTER TRADING WE SAW IT AS A BUYING OPPORTUNITY AFTER WHAT HAPPENED ON FRIDAY SAID ONE ANALYST KENNETH LEON OF BEAR STEARNS & CO 9301260175 930126 WHO'S NEWS MEDTRONIC INC MEDTRONIC INC MINNEAPOLIS LOWELL P JACOBSEN 47 YEARS OLD SENIOR VICE PRESIDENT HUMAN RESOURCES WAS NAMED CHAIRMAN OF MEDTRONIC JAPAN SUCCEEDING ARTHUR D COLLINS WHO IS NOW EXECUTIVE VICE PRESIDENT OF THIS MEDICAL DEVICE CONCERN AND PRESIDENT OF ITS MEDTRONIC INTERNATIONAL UNIT JANET S FIOLA 50 VICE PRESIDENT HUMAN RESOURCES WAS NAMED CORPORATE VICE PRESIDENT HUMAN RESOURCES SUCCEEDING MR JACOBSEN 9301260174 930126 MEDICINE PFIZER TO HOLD DRUGPRICE RISE UNDER 3 IN '93 BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PFIZER INC SAID PRICE INCREASES OF ITS PRESCRIPTION DRUGS WILL RISE LESS THAN 3 IN 1993 A FURTHER SIGNAL THAT DRUG MAKERS HAVE DECIDED TO RESTRAIN PRICE INCREASES VOLUNTARILY PFIZER ONE OF THE NATION'S BIGGEST AND MORE PROSPEROUS PHARMACEUTICAL COMPANIES JOINS A GROWING LIST OF DRUG MAKERS PUBLICLY PLEDGING TO MODERATE ANNUAL PRICE INCREASES OF PRESCRIPTION MEDICINES WHICH ON AVERAGE HAD BEEN RISING BY TWO AND THREE TIMES THE RATE OF CONSUMER INFLATION UP TO 1991 EIGHT DRUG COMPANIES INCLUDING MERCK & CO GLAXO HOLDINGS PLC AND AMERICAN HOME PRODUCTS INC HAVE PROMISED TO KEEP YEARLY AVERAGE PRICE INCREASES AT OR BELOW THE ANNUAL RATE OF THE CONSUMER PRICE INDEX IN RECENT WEEKS TOP EXECUTIVES AT SEVERAL MAJOR DRUG COMPANIES HAVE QUIETLY PROMISED OFFICIALS OF THE CLINTON ADMINISTRATION'S TRANSITION TEAM THAT THEIR COMPANIES WILL PUT THE BRAKES ON DRUGPRICE INCREASES THE COMPANIES HOPE THE VOLUNTARY PLEDGES WILL FORESTALL PUNITIVE PRICE CONTROLS FROM THE FEDERAL GOVERNMENT MANY WALL STREET INVESTORS CONVINCED WASHINGTON IS DETERMINED TO RESTRICT DRUG PRICING HAVE PUSHED DOWN DRUG COMPANY STOCKS TO ABOUT THEIR 52WEEK LOWS IN ANNOUNCING ITS PLEDGE YESTERDAY IN A NEWS RELEASE PFIZER PUT PRESSURE ON FELLOW DRUG MAKERS THAT HAVE YET TO FORMALLY COMMIT THEMSELVES TO RESTRAINING PRICE INCREASES DRUGCOMPANY EXECUTIVES SAY THE INDUSTRY CAN'T AGREE AS A GROUP TO LIMIT PRICE RISES BECAUSE THAT MIGHT BE CONSTRUED AS PRICEFIXING A VIOLATION OF ANTITRUST LAWS INSTEAD DRUGINDUSTRY LOBBYISTS HOPE PRESIDENT CLINTON OR SOME OTHER HIGH HEALTH OFFICIAL INSTEAD OF PRESSING FOR RESTRICTIVE PRICING LEGISLATION WILL ASK THE INDUSTRY TO RESTRICT ANNUAL PRICE GROWTH VOLUNTARILY COMPANY EXECUTIVES SAID THAT IN RETURN THEY WILL AGREE TO ALLOW PUBLIC MONITORING OF THEIR PRICING POLICIES SEVERAL DRUGINDUSTRY LOBBYISTS SAID THE ADMINISTRATION BEDEVILED BY HEALTH REFORM IN GENERAL MIGHT JUMP AT THE CHANCE TO CURB THE COST OF MEDICINES WITHOUT A POTENTIALLY LONG LEGISLATIVE BATTLE WILLIAM C STEERE JR PFIZER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE DRUG INDUSTRY AS A GROUP ALREADY HAS TOLD CLINTON'S TRANSITION OFFICIALS THAT IT WOULD GO ALONG WITH ANY FEDERAL HEALTHCARE PLAN THAT INCLUDES PRESCRIPTION DRUGS AS PART OF A STANDARD OUTPATIENT HEALTH BENEFIT SUCH A MOVE WOULD EXPAND DRUGINSURANCE COVERAGE TO MANY PEOPLE WHO NOW PAY DRUG BILLS THEMSELVES BUT IT ALSO MIGHT FORCE PHARMACEUTICAL COMPANIES TO DISCOUNT PRICES IN ORDER TO MAKE CERTAIN THAT INSURANCE CARRIERS INCLUDE THE DRUG MAKERS' PRODUCTS IN THE PLANS MR STEERE WHO IN MARCH WILL BECOME CHAIRMAN OF THE INDUSTRY'S TRADE GROUP THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID THE MEMBER COMPANIES ARE DIVIDED AS TO WHETHER THE MEDICARE INSURANCE PLAN FOR THE ELDERLY ALSO SHOULD PAY FOR OUTPATIENT PRESCRIPTION DRUG COSTS AT PRESENT MEDICARE RECIPIENTS MUST PAY FOR DRUGS THEMSELVES OR BUY PRIVATE HEALTH INSURANCE THE COMPANIES WORRY THAT IN ORDER TO PAY FOR EXPANDED MEDICARE COVERAGE THE FEDERAL GOVERNMENT WILL CLAMP DOWN SHARPLY ON DRUG PRICES PAID FOR UNDER THE FEDERAL PLAN PFIZER SAID THAT IT WON'T RAISE PRICES ON MANY OF ITS PRODUCTS IN 1993 AND THAT NO DRUG WILL POST A HIGHER INCREASE THAN 45 THE COMPANY SAID DRUG PRICES ROSE SLIGHTLY LESS THAN 2 ON AVERAGE IN 1992 AND 38 IN 1991 MERCK HAS SAID ITS PRICES ON AVERAGE HAVEN'T RISEN ABOVE CONSUMER INFLATION SINCE 1990 AND GLAXO SAID ITS PRICES ROSE AN AVERAGE OF 2 IN 1992 A SPOKESMAN FOR THE INDUSTRY'S TRADE GROUP SAID THAT SINCE EARLY LAST YEAR AMERICAN HOME PRODUCTS EASTMAN KODAK CO'S STERLING UNIT MARION MERRELL DOW INC IMPERIAL CHEMICAL INDUSTRIES PLC AND ROCHE HOLDING LTD'S HOFFMANNLA ROCHE INC UNIT ALL HAVE VOWED TO REIN IN DRUG PRICES OFFICIALS AT SEVERAL DRUG COMPANIES THAT HAVE YET TO MAKE A PRICING PLEDGE HAVE GRUMBLED THAT PFIZER GLAXO AND MERCK ARE ABLE TO KEEP FUTURE INCREASES LOW BECAUSE THEY EACH HAVE INTRODUCED A SPATE OF NEW DRUGS IN RECENT YEARS THAT WERE RELEASED WITH HEFTY PRICE TAGS COMPANIES THAT HAVEN'T INTRODUCED NEW MEDICINES ARE FORCED TO GENERATE REVENUE THROUGH ANNUAL PRICE RISES INDEED MR STEERE SAID DRUG MAKERS DON'T WANT THE FEDERAL GOVERNMENT TO LIMIT FIRSTTIME PRICES COMPANIES CAN CHARGE FOR NEW INNOVATIVE PRODUCTS DOING SO COULD REALLY HAMPER INCENTIVES FOR THE KIND OF RESEARCH NEEDED TO PRODUCE IMPORTANT NEW MEDICINES HE SAID INDEED AT A CONGRESSIONAL HEARING YESTERDAY SEVERAL INDUSTRY REPRESENTATIVES ARGUED THAT THE FEDERAL GOVERNMENT SHOULD BE WARY OF RESTRICTING FIRSTTIME PRICES OF BREAKTHROUGH MEDICINES THE HEARING WAS HELD BY REP RON WYDEN D ORE TO REVIEW THE PRICE OF TAXOL A NEW CANCER DRUG DEVELOPED BY THE FEDERAL GOVERNMENT AND BRISTOLMYERS SQUIBB CO REP WYDEN HAS ARGUED THAT TAXOL'S WHOLESALE TAB ABOUT 1000 PER CYCLE OF TREATMENT WAS TOO HIGH GIVEN THE FEDERAL GOVERNMENT'S ROLE IN DISCOVERING THE MEDICINE 9301260173 930126 LAW SPLIT SUPREME COURT FURTHER NARROWS AVENUE FOR APPEALS FROM DEATH ROW BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SPLINTERED SUPREME COURT REJECTING A DEATHROW CONVICT'S APPEAL NARROWED ANOTHER AVENUE FOR CONDEMNED INMATES TO GET THEIR CASES REVIEWED BY FEDERAL COURTS BUT AS OCCURRED IN RELATED CASES LAST TERM THE HIGH COURT'S CONSERVATIVE JUSTICES COULDN'T AGREE ON HOW FAR THEY SHOULD GO IN PREVENTING FEDERAL REVIEW OF STATE COURT VERDICTS YESTERDAY'S DECISION INVOLVED AN ELEVENTHHOUR CLAIM BY A SOUTH TEXAS MAN CONVICTED OF MURDER THAT IT HAD BEEN HIS BROTHER NOT HE WHO SHOT AND KILLED TWO POLICEMEN IN 1981 THE QUESTION PRESENTED TO THE SUPREME COURT WAS WHETHER SUCH A CLAIM OF INNOCENCE ABSENT ANY OTHER VIOLATION OF THE PRISONER'S CONSTITUTIONAL RIGHTS IS GROUND FOR A FEDERAL COURT TO STAY EXECUTION AND HOLD A HEARING WRITING FOR A MAJORITY OF SIX CHIEF JUSTICE WILLIAM REHNQUIST SAID THE ANSWER IS NO THE STATE COURT TRIAL WAS THE OCCASION TO DETERMINE GUILT OR INNOCENCE NOT A FEDERAL COURT HEARING YEARS LATER HE SAID BUT THREE MEMBERS OF THE MAJORITY JUSTICES SANDRA DAY O'CONNOR ANTHONY KENNEDY AND BYRON WHITE SO HEDGED THEIR POSITIONS IN SEPARATE OPINIONS THAT THEY CAST DOUBT ON HOW YESTERDAY'S DECISION WILL BE INTERPRETED BY LOWER COURTS THE CASE INVOLVED LEONEL HERRERA WHOSE LAWYERS HAD PERSUADED A FEDERAL JUDGE IN MCALLEN TEXAS TO STAY HIS LONGDELAYED EXECUTION SO THEY COULD PRESENT NEWLY PRODUCED AFFIDAVITS FROM PEOPLE WHO SAID THE DEFENDANT IS INNOCENT FOUR PEOPLE HAD SWORN THAT THEY BELIEVED MR HERRERA'S BROTHER RAUL KILLED THE POLICEMEN RAUL HIMSELF COULDN'T TESTIFY HE WAS SHOT AND KILLED IN 1984 THE US COURT OF APPEALS FOR THE FIFTH CIRCUIT IN NEW ORLEANS THREW OUT THE TRIAL JUDGE'S STAY SAYING THAT HE LACKED AUTHORITY TO DELAY THE EXECUTION BASED ON A CLAIM OF INNOCENCE AND NOTHING MORE IN THEIR APPEAL TO THE SUPREME COURT MR HERRERA'S LAWYERS TRIED TO FRAME THE CASE AS RAISING THE ISSUE OF WHETHER IT IS CONSTITUTIONAL TO EXECUTE AN INNOCENT MAN THE REHNQUIST OPINION REJECTED THEIR PREMISE POINTING OUT THAT PROSECUTORS HAD PRESENTED CONSIDERABLE EVIDENCE OF GUILT INCLUDING EYEWITNESS TESTIMONY AND A CONFESSIONAL LETTER WRITTEN BY MR HERRERA MOREOVER DURING THE PAST DECADE THE CASE ALREADY HAD BEEN APPEALED SEVERAL TIMES THROUGH STATE AND FEDERAL COURTS CHIEF JUSTICE REHNQUIST EMPHASIZED THUS IN THE EYES OF THE LAW MR REHNQUIST WROTE MR HERRERA DOES NOT COME BEFORE THE COURT AS ONE WHO IS INNOCENT' BUT ON THE CONTRARY AS ONE WHO HAS BEEN CONVICTED BY DUE PROCESS OF LAW OF TWO BRUTAL MURDERS IN RECENT YEARS THE SUPREME COURT HAS IMPOSED A SERIES OF PROCEDURAL OBSTACLES MAKING IT MORE DIFFICULT FOR STATE PRISONERS TO OBTAIN FEDERAL COURT ORDERS KNOWN AS WRITS OF HABEAS CORPUS THAT THROW OUT SENTENCES OR CONVICTIONS THE HIGH COURT HAS HELD OUT AS AN EXCEPTION TO THESE RULINGS THE HYPOTHETICAL CASE IN WHICH A PRISONER IS ACTUALLY INNOCENT HAVING EXHAUSTED MANY PROCEDURAL ARGUMENTS BEFORE THE SUPREME COURT LAWYERS OPPOSING CAPITAL PUNISHMENT VIEWED THE HERRERA CASE AS A TEST OF WHAT THE ACTUAL INNOCENCE EXCEPTION MEANS YESTERDAY'S MAJORITY OPINION SAID THAT A CLAIM OF INNOCENCE SUCH AS MR HERRERA'S MAY BE HEARD BY A FEDERAL JUDGE ONLY IF IT IS ACCOMPANIED BY THE SORT OF PROCEDURAL CLAIM THAT THE HIGH COURT HAS CONSISTENTLY DENIED ONE SUCH PROCEDURAL CLAIM MIGHT BE THAT A PRISONER HAD GOTTEN INADEQUATE LEGAL REPRESENTATION IN VIOLATION OF THE SIXTH AMENDMENT CHIEF JUSTICE REHNQUIST SAID THAT A CLAIM OF ACTUAL INNOCENCE IS NOT ITSELF A CONSTITUTIONAL CLAIM BUT INSTEAD A GATEWAY THROUGH WHICH A HABEAS PETITIONER MUST PASS TO HAVE HIS OTHERWISE BARRED CONSTITUTIONAL CLAIM CONSIDERED ON THE MERITS IF MR HERRERA HAD PERSUASIVE NEW EVIDENCE BUT NO PROCEDURAL CLAIM HE OUGHT TO PRESENT THE EVIDENCE TO THE GOVERNOR OF TEXAS IN A CLEMENCY PLEA MR REHNQUIST SAID TEXAS PERMITS NEWLY DISCOVERED EVIDENCE TO BE PRESENTED IN ITS COURTS ONLY WITHIN 30 DAYS OF A CONVICTION 16 OTHER STATES HAVE A LIMIT OF 60 DAYS OR LESS IN A SECTION THAT APPEARED TO BE ADDED TO THE REHNQUIST OPINION TO KEEP THE VOTES OF JUSTICES O'CONNOR AND KENNEDY THE MAJORITY ACKNOWLEDGED FOR THE SAKE OF ARGUMENT THAT A TRULY PERSUASIVE DEMONSTRATION OF ACTUAL INNOCENCE' MADE AFTER TRIAL WOULD RENDER THE EXECUTION OF A DEFENDANT UNCONSTITUTIONAL AND WARRANT A FEDERAL COURT'S INTERVENTION MR HERRERA'S EVIDENCE DIDN'T COME CLOSE TO THAT MARK THE CHIEF JUSTICE WROTE HE EMPHASIZED THE DUBIOUSNESS OF AFFIDAVITS PROVIDED 10 YEARS AFTER THE CONVICTION THAT BLAME THE MURDERS ON A DEAD MAN JUSTICE O'CONNOR IN A CONCURRING OPINION JOINED BY JUSTICE KENNEDY STRESSED THAT THE MAJORITY LEFT THE DOOR OPEN IF ONLY A CRACK FOR APPEALS BASED ON TRULY PERSUASIVE PROOF OF INNOCENCE ATTEMPTING TO LIMIT THE EFFECT OF YESTERDAY'S DECISION JUSTICE O'CONNOR CONTENDED THE HIGH COURT HADN'T DEFINED THE SCOPE OF THE TRULY PERSUASIVEPROOF EXCEPTION SHE ADDED THAT RESOLVING THE ISSUE IS NEITHER NECESSARY NOR ADVISABLE IN THIS CASE BECAUSE THE EVIDENCE AGAINST MR HERRERA WAS OVERWHELMING JUSTICE BYRON WHITE WROTE A SEPARATE ONEPARAGRAPH OPINION THAT JOINED ONLY THE MAJORITY'S CONCLUSION REJECTING ITS REASONING HE SAID THAT A PERSUASIVE SHOWING OF INNOCENCE WOULD BE ENOUGH TO JUSTIFY A FEDERAL HABEAS HEARING TO WIN REVERSAL OF A DEATH SENTENCE HOWEVER A PRISONER WOULD HAVE TO SHOW THAT NO RATIONAL JURY COULD HAVE FOUND HIM GUILTY JUSTICE WHITE SAID JUSTICE ANTONIN SCALIA JOINED BY JUSTICE CLARENCE THOMAS WROTE A SEPARATE CONCURRENCE THAT ALSO EMPHASIZED THE MAIN THRUST OF THE REHNQUIST OPINION AND REJECTED ANY EFFORT TO QUALIFY IT WITH EXCEPTIONS JUSTICE HARRY BLACKMUN IN A PASSIONATE DISSENT JOINED BY JUSTICES JOHN PAUL STEVENS AND DAVID SOUTER SAID THAT FEDERAL JUDGES SHOULD HAVE CONSIDERABLE DISCRETION TO HEAR HABEAS APPEALS BY DEATHROW PRISONERS WHO CLAIM INNOCENCE BASED ON NEW EVIDENCE HE SAID INMATES WHO CAN SHOW THEY ARE PROBABLY INNOCENT SHOULD HAVE THEIR DEATH SENTENCES THROWN OUT HERRERA VS COLLINS IN A SEPARATE CASE THE HIGH COURT RULED UNANIMOUSLY THAT CODEFENDANTS IN A FEDERAL CRIMINAL TRIAL WHO TRIED TO PIN BLAME ON EACH OTHER AREN'T NECESSARILY ENTITLED TO SEPARATE TRIALS ZAFIRO VS US 9301260172 930126 LETTERS TO THE EDITOR CABLE INDUSTRY INTENDS TO ABIDE BY NEW LAW YOUR DEC 14 ARTICLE CABLE CONCERNS ARE SCRAMBLING TO RAISE RATES MADE SWEEPING GENERALIZATIONS ABOUT THE CABLE INDUSTRY YOU IMPLIED THAT THE INDUSTRY HAS SET OUT EN MASSE TO ADOPT UNREASONABLE RATE HIKES IN THE AFTERMATH OF THE NEW FEDERAL CABLE REGULATION LAW IN FACT CHANGES IN RATES VARY WIDELY ACROSS THE COUNTRY AND MANY COMPANIES ARE ADOPTING VERY MINIMAL INCREASES OR NONE AT ALL YOU ALSO CHARGED THAT THESE RATE INCREASES REPRESENTED AN ATTEMPT BY CABLE OPERATORS TO SKIRT THE EFFECTS OF THE NEW CABLE LAW I WOULD SUGGEST THAT WHERE RATE HIKES HAVE OCCURRED THEY ARE NOT SO MUCH THE CONSEQUENCE OF DIABOLICAL MOTIVES AS THEY ARE OF ROUTINE BUDGETARY REQUIREMENTS IT IS IN FACT WELLESTABLISHED BUSINESS PRACTICE FOR MANY CABLE COMPANIES TO PREPARE CALENDARYEAR BUDGETS AND TO ADJUST THEIR RATES AT THE END OF THE YEAR TO REFLECT NEW COSTS MANY CABLE COMPANIES HAVE INCURRED INCREASED COSTS THROUGH THE ADDITION OF NEW PROGRAM CHANNELS AND THROUGH CAPITAL IMPROVEMENTS TO THEIR TECHNOLOGY FINALLY YOUR STORY ALSO INDICATED THAT RETIERING OF CABLE CHANNELS WAS ANOTHER ATTEMPT TO UNDERCUT THE NEW CABLE LAW IN FACT THE NEW LAW REQUIRES THAT CABLE COMPANIES CREATE A BASIC TIER OF SERVICE THAT INCLUDES LOCAL BROADCASTERS LOCAL ACCESS CHANNELS AND PUBLIC EDUCATIONAL AND GOVERNMENTAL CHANNELS CABLE COMPANIES THAT ARE CREATING THOSE TIERS TODAY ARE DOING SO IN ANTICIPATION OF THEIR NEED TO MEET THAT REQUIREMENT IN APRIL THE CABLE INDUSTRY INTENDS TO ABIDE BY THE NEW CABLE LAW IN A SPIRIT OF COOPERATION WITH LOCAL AND FEDERAL REGULATORS WHILE ONE MIGHT FIND INDIVIDUAL CASES OF ERRANT BEHAVIOR IT IS CERTAINLY UNFAIR TO PAINT ALL CABLE COMPANIES WITH A SINGLE BRUSH 9301260171 930126 CREDIT RATINGS HALLIBURTON CO DALLAS MOODY'S INVESTORS SERVICE INC LOWERED THE RATING ON THIS OILFIELD SERVICE COMPANY'S LONGTERM DEBT THE RATINGS CONCERN SAID IT EXPECTS HALLIBURTON'S OPERATING EARNINGS TO REMAIN LACKLUSTER OVER THE INTERMEDIATE TERM AND THAT FUTURE PERFORMANCE WILL BE CONSTRAINED BY SHRINKING BUSINESS OPPORTUNITIES IN THE UNITED STATES DUE TO WEAK NATURAL GAS PRICES MOODY'S CUT RATINGS ON HALLIBURTON'S DEBENTURES TO SINGLEA2 FROM DOUBLEA3 ON SINKING FUND DEBENTURES TO SINGLEA2 FROM DOUBLEA3 AND ON ZEROCOUPON CONVERTIBLE SUBORDINATED DEBENTURES TO SINGLEA3 FROM SINGLEA1 A HALLIBURTON SPOKESMAN SAID THAT WHILE MARKET CONDITIONS HAVE BEEN DIFFICULT OVER THE PAST FEW YEARS WE ARE IN A STRONG FINANCIAL CONDITION AND IMPROVEMENTS WILL COME OVER A PERIOD OF TIME 9301260170 930126 NO EXPANSION FOR UN SECURITY COUNCIL BY JOHN BOLTON A MAJOR ISSUE TO WATCH IN THE NEW ADMINISTRATION IS THE EXTENT TO WHICH THE CLINTON TEAM WILL LOOK TO MULTILATERALISM AS A GUIDING PRINCIPLE ONE SIGN OF THIS ATTITUDE CAME YESTERDAY WHEN THE NEW SECRETARY OF STATE WARREN CHRISTOPHER SAID THE US SUPPORTED EXPANDING THE UN SECURITY COUNCIL'S LIST OF PERMANENT SEATS TO INCLUDE JAPAN AND GERMANY MULTILATERALISM OF COURSE HAS ITS PLACE AS DESERT STORM FOUGHT WITH SECURITY COUNCIL AUTHORIZATION CLEARLY DEMONSTRATED THE DANGER OF THE MULTILATERAL TEMPTATION IS THAT ONE WILL RESORT TO THE UN REFLEXIVELY THAT REDUCES AMERICA'S UNILATERAL OR NONUN OPTIONS AND COULD EVEN ERODE ITS SOVEREIGNTY THE SIZE AND COST OF UN PEACEKEEPING OPERATIONS ESCALATED DRAMATICALLY IN JUST THE FOUR YEARS OF THE BUSH ADMINISTRATION IN 1988 THE TOTAL US CONTRIBUTIONS FOR PEACEKEEPING WERE 367 MILLION AS THE BUSH ADMINISTRATION LEFT OFFICE THE FISCAL 1993 APPROPRIATION WAS 460 MILLION AND IT IS EXPECTED TO BE AT LEAST 300 MILLION SHORT OF THE ACTUAL BILL THE QUESTION NOW IS WHETHER THE NEW PRESIDENT CAN AVOID THE MULTILATERAL TEMPTATION WELL BEFORE THE ELECTION THENGOV CLINTON SAID IN A SPEECH THAT HE WOULD NEVER TURN OVER THE SECURITY OF THE US TO THE UN BUT IN THE SAME SPEECH MR CLINTON ALSO EMBRACED THE DIAPHANOUS CONCEPT OF PREVENTIVE DIPLOMACY AND DISHED THAT ONTO THE UN'S OVERFLOWING PLATE IN THE SPEECH MR CLINTON ALSO SHOWED SIGNS OF SUCCUMBING TO THE MOST DANGEROUS TEMPTATION MULTILATERALISM OFFERS HE BACKED THE IDEA OF OPENING THE DEBATE UP ON THE QUESTION OF GIVING JAPAN AND GERMANY PERMANENT SEATS ON THE SECURITY COUNCIL YESTERDAY MR CHRISTOPHER SAID I EXPECT WE'LL SEE SOME DEVELOPMENTS IN THAT DIRECTION MAKING THE SECURITY COUNCIL MORE INCLUSIVE SOUNDS TEMPTING MR CLINTON'S DESIGNATED AMBASSADOR TO THE UN MADELEINE ALBRIGHT ALSO VOICED SUCH THOUGHTS DURING HER CONFIRMATION HEARING SHE SAID THAT WE HAVE TO MAKE THE ORGANIZATION REFLECT THE NEW WORLD BUT CONSIDERING JAPAN AND GERMANY FOR MEMBERSHIP OPENS A PANDORA'S BOX MODIFYING THE COUNCIL'S COMPOSITION REQUIRES REVISION OF THE UN'S CHARTER AND IT WOULD BE HARD TO ORGANIZE AMONG THE UN'S MYRIAD MEMBERORGANIZATIONS THE TWOTHIRDS MAJORITY REQUIRED FOR THAT CHANGE HARD TO ORGANIZE THAT IS WITHOUT FURTHER FIDDLING WITH THE BODY'S COMPOSITION IF THE CHOICE WERE ONLY BETWEEN THE SECURITY COUNCIL AS IT IS NOW AND THE SECURITY COUNCIL PLUS JAPAN OR EVEN PLUS JAPAN AND GERMANY IT WOULD BE AN EASY CHOICE THE US COULD SUPPORT THE CHANGE THE ONLY DOWNSIDE WOULD BE INCREASING THE SIZE OF THE COUNCIL TO 17 FROM 15 THIS MAY NOT SEEM LIKE MUCH BUT THE COMPLEXITY OF NEGOTIATIONS IN THE COUNCIL DOES INCREASE GEOMETRICALLY WITH THE ADDITION OF NEW MEMBERS ESPECIALLY PERMANENT ONES IT IS WORTH STRESSING THAT THE ORIGINAL UN CHARTER PROVIDED FOR ONLY 11 MEMBERS FIVE PERMANENT AND SIX NONPERMANENT FOUR NEW NONPERMANENT SEATS WERE CREATED BY CHARTER AMENDMENT IN 1963 EFFECTIVE IN 1965 LARGELY BECAUSE OF PRESSURE FROM NEW THIRD WORLD MEMBERS THUS A SECURITY COUNCIL OF 17 MEMBERS WOULD BE NEARLY 55 LARGER THAN THE CHARTER FRAMERS HAD INTENDED UNFORTUNATELY THE CHOICE THE US FACES IS IN REALITY FAR MORE COMPLEX IN ADDITION TO GERMANY AND JAPAN THE FOLLOWING OTHER MEMBERS GOVERNMENTS IN NEUTRAL ALPHABETICAL ORDER HAVE EXPRESSED THEIR DESIRE FOR A PERMANENT SEAT OR ARE BELIEVED TO WANT ONE IF THE ISSUE ARISES BRAZIL INDIA INDONESIA ITALY AND NIGERIA IT IS DIFFICULT IF NOT IMPOSSIBLE TO BELIEVE THAT THE VAST MAJORITY OF UN MEMBERS WOULD COUNTENANCE THE ADDITION OF TWO OR THREE MORE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MEMBERS WITHOUT ADDITIONAL THIRD WORLD REPRESENTATION EVEN IF WE ASSUMED THAT THE CASES OF ALL OF THE COUNTRIES LISTED ABOVE WERE EQUALLY COMPELLING A HEROIC ASSUMPTION IN ITSELF IT WOULD BE VIRTUALLY IMPOSSIBLE TO SORT THROUGH THE POLITICS OF PICKING THE NEW PERMANENT MEMBERS IS INDONESIA MEASURABLY MORE DESERVING OF A PERMANENT SEAT THAN SAY UKRAINE DOES ITALY REALLY WANT A PERMANENT SEAT OR DOES IT PREFER AN IDEA ATTRIBUTED TO ITS FORMER FOREIGN MINISTERGIANNI DE MICHELIS FRANCE AND THE UNITED KINGDOM TO BE REPLACED AS PERMANENT MEMBERS BY JAPAN AND THE EUROPEAN COMMUNITY IF SOUTH AFRICA BECAME A TRULY MULTIRACIAL DEMOCRACY WOULD IT NOT HAVE A STRONGER CLAIM TO A PERMANENT SEAT THAN NIGERIA IN FACT PRESIDENT CLINTON MIGHT SUPPORT PERMANENT SEATS FOR ALL THESE CONTENDERS AFTER ALL IT WOULD CERTAINLY MAKE THE SECURITY COUNCIL LOOK MORE LIKE THE WORLD AN UNPRECEDENTED SECURITY COUNCIL SESSION LAST JANUARY GAVE A GLIMPSE OF WHAT THIS FUTURE COULD LOOK LIKE THEN MEMBERS WERE REPRESENTED IN ALL BUT TWO CASES ZIMBABWE BECAUSE OF THE DEATH OF THE PRIME MINISTER'S WIFE AND HUNGARY BECAUSE OF THE ILLNESS OF THE PRIME MINISTER BY THEIR RESPECTIVE HEADS OF STATE VENEZUELA QUESTIONED THE POWER OF THE SECURITY COUNCIL VETO SAYING THAT THE CIRCUMSTANCES ON WHICH IT WAS BASED HAVE TO A GREAT EXTENT BEEN SUPERSEDED BY HISTORY ZIMBABWE ASSERTED THAT A COLLECTIVE SECURITY SYSTEM LIABLE TO A VETO BY ONE OR A FEW STATES IS NOT RELIABLE MANY NATIONS HAVE NEVER ACCEPTED THE IDEA THAT THE PERMANENT MEMBERS HAVE A VETO AND THEY COULD BE EXPECTED TO PURSUE THEIR ABOLITIONIST CASE VIGOROUSLY IRONICALLY THEIR ARGUMENT WOULD RELY HEAVILY ON THE ABSENCE OF VETOES SINCE MAY 31 1990 WHEN THE BUSH ADMINISTRATION VETOED A RESOLUTION ON THE OCCUPIED TERRITORIES AS UNFAIR TO ISRAEL THIS RELATIVELY LENGTHY PERIOD THEY WOULD ARGUE SHOWS THAT THE VETO IS NO LONGER NEEDED IN THE POSTCOLD WAR ERA THE CHANGES DESCRIBED ABOVE MEAN RISKING TURNING THE SECURITY COUNCIL INTO ANOTHER ECONOMIC AND SOCIAL COUNCIL A UN BODY THAT IS THEORETICALLY THE SECURITY COUNCIL'S COUNTERPART IN ECONOMIC AND SOCIAL ISSUES ECOSOC WAS ORIGINALLY 18 MEMBERS BUT WAS ENLARGED TO 27 BY CHARTER AMENDMENT IN 1963 AND BY FURTHER AMENDMENT TO 54 IN 1973 ONE OF THE CLEAR REASONS FOR THE UN'S MARGINALIZATION ON ECONOMIC ISSUES OVER THE YEARS HAS BEEN ECOSOC'S UNWIELDINESS WE DO NOT WANT OR NEED TO DO THIS TO THE SECURITY COUNCIL RESISTING CHANGE ON THE SECURITY COUNCIL AND OTHER MULTILATERAL TEMPTATIONS IS LIKELY TO BE ONE OF THE CLINTON ADMINISTRATION'S GREATEST CHALLENGES MR BOLTON WHO RECENTLY DEPARTED AS ASSISTANT SECRETARY OF STATE FOR INTERNATIONAL ORGANIZATIONS AFFAIRS IS JOINING THE MANHATTAN INSTITUTE AS A FELLOW 9301260169 930126 ECONOMY CAR TRUCK SALES SPURTED BY 22 IN MIDJANUARY US SPORT UTILITY VEHICLES MINIVANS TRUCKS PACED CLIMB IN 10DAY PERIOD BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF DOMESTIC CARS AND LIGHT TRUCKS STRENGTHENED IN MIDJANUARY FROM YEAREARLIER LEVELS AS US AUTO MAKERS BENEFITED FROM CONTINUED STRONG DEMAND FOR MINIVANS SPORT UTILITY VEHICLES AND OTHER TRUCKS THE ANNUALIZED SALES PACE OF USMADE CARS AND LIGHT TRUCKS REACHED 108 MILLION FOR THE JAN 1120 PERIOD A 22 IMPROVEMENT OVER LAST YEAR BUT DOWN FROM DECEMBER'S 112 MILLION PACE OVERALL US CONSUMERS PURCHASED 265904 VEHICLES IN MIDJANUARY A 15 INCREASE FROM 187251 VEHICLES A YEAR AGO THERE WERE NINE SELLING DAYS IN THE LATEST PERIOD COMPARED WITH EIGHT A YEAR EARLIER FORD MOTOR CO WHICH RODE INTO JANUARY ON THE STRENGTH OF ITS TAURUS AUTOMOBILE SALES WAS ONE OF THE INDUSTRY'S STRONGEST PERFORMERS IN THE LATEST 10DAY PERIOD SELLING 75075 VEHICLES A 16 INCREASE OVER LAST YEAR FORD REPORTED INCREASES IN THE SALE OF BOTH CARS AND LIGHT TRUCKS GENERAL MOTORS CORP SAW ITS TRUCK SALES RISE 33 FROM YEARAGO LEVELS DURING MIDJANUARY BUT SALES OF GM PASSENGER CARS FELL 34 IN THE LATEST PERIOD GM YESTERDAY SAID IT WOULD EXTEND DISCOUNTS ON MOST OF ITS CAR MODELS THAT HAD BEEN SCHEDULED TO END THIS WEEK ONE BRIGHT SPOT IN GM'S PICTURE WAS A 257 JUMP IN THE SALES OF ITS CUTLASS SUPREME MODEL AFTER OLDSMOBILE BEGAN OFFERING A WELLEQUIPPED VERSION OF THE CAR FOR 15995 DEALERS SAID DEMAND FOR THE ONEPRICE CUTLASS SUPREME IS STRONG REVERSING A TREND OF DISAPPOINTING SALES FOR THE MODEL LIKEWISE THE DIVISION'S CUTLASS CIERA ALSO A MIDSIZE CAR ALSO SOLD WELL IN MIDJANUARY OLDSMOBILE SOLD 3553 CUTLASS CIERAS A 353 RISE OVER LAST YEAR SOME AUTO DEALERS NOTED A MODERATE PICKUP IN SHOWROOM TRAFFIC IN THE EARLY DAYS OF THE NEW YEAR AND DEALERS SAY CAR BUYERS SEEM MORE WILLING TO MAKE PURCHASES REFLECTING STRONGER CONFIDENCE IN THE ECONOMY CHRYSLER CORP'S TOTAL VEHICLE SALES JUMPED 336 IN THE JAN 1120 PERIOD ACCORDING TO AN ESTIMATE PROVIDED BY WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION CHRYSLER DOESN'T REPORT 10DAY VEHICLE SALES AMONG THE JAPANESE AUTO MAKERS HONDA MOTOR CO AND TOYOTA MOTOR CORP'S MIDJANUARY AUTO SALES FARED AMONG THE WORST HONDA'S DOMESTIC CAR SALES FELL 282 IN LATEST 10DAY PERIOD WHILE TOYOTA'S DOMESTIC CAR SALES DROPPED 63 BUT NISSAN MOTOR CO PERFORMED WELL SELLING 8026 VEHICLES UP 557 FROM THE PREVIOUS YEAR'S 10DAY PERIOD NISSAN'S MIDJANUARY SALES WERE LARGELY HELPED BY ROBUST SALES OF ITS NEW ALTIMA MIDSIZE FAMILY SEDAN 9301260168 930126 USLIFE TO REDEEM NOTES THE LIFE INSURANCE COMPANY SAID THE NOTES ARE REDEEMABLE AT THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9301260167 930126 WHO'S NEWS FORD MOTOR CO FORD MOTOR CO DEARBORN MICH RICHARD BEATTIE FORMERLY A MARKETING MANAGER OF THE FORD DIVISION HAS BEEN NAMED VICE PRESIDENT SALES AND MARKETING OF THIS AUTO MAKER'S JAGUAR CARS INC UNIT MR BEATTIE 39 YEARS OLD SUCCEEDS MICHAEL JACKLING WHO LEFT THE FORD UNIT IN NOVEMBER 9301260166 930126 ABREAST OF THE MARKET INDUSTRIALS RISE 3539 AS OIL STOCKS AND BOND GAINS FUEL THE RALLY BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SOARING OIL STOCKS AND A STRONG BOND MARKET FUELED AN EXPLOSIVE RALLY IN EQUITIES THE DOW JONES INDUSTRIAL AVERAGE ADVANCED 3539 POINTS OR 109 TO 329220 THE STANDARD & POOR'S 500STOCK INDEX CLIMBED 390 POINTS OR 089 TO 44001 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX JUMPED 206 POINTS OR 086 TO 24247 FROM THE OPENING BELL STOCKS WERE OFF TO THE RACES SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES THE MARKET'S SUPPORT CAME FROM TWO DIRECTIONS TOUGH TALK FROM TREASURY SECRETARY LLOYD BENTSEN ABOUT THE FEDERAL DEFICIT SENT BONDS SPIRALLING HIGHER AND A PUBLISHED REPORT THAT SAUDI ARABIA WANTS THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO SLASH PRODUCTION BY MORE THAN ONE MILLION BARRELS A DAY LIFTED OIL STOCKS SUCH CUTBACKS ARE SEEN BOOSTING OIL PRICES AND BOLSTERING CORPORATE PROFITS THE SAUDI MOVE MIXED WITH A ROUND OF POSITIVE QUARTERLY EARNINGS TO PUSH STOCK PRICES EVEN HIGHER ATLANTIC RICHFIELD FOR EXAMPLE SHOT UP 5 1/4 TO 115 AFTER THE LOS ANGELES PETROLEUM COMPANY REPORTED FOURTHQUARTER NET OF 230 A SHARE OR 372 MILLION WHICH INCLUDED A GAIN OF 75 MILLION THAT COMPARES WITH YEARAGO EARNINGS OF 167 A SHARE OR 268 MILLION UNOCAL ROSE 1 1/2 TO 25 5/8 AFTER THE LOS ANGELES OIL COMPANY SAID IT RECORDED FOURTHQUARTER NET OF 39 CENTS A SHARE OR 103 MILLION COMPARED WITH A YEARAGO LOSS OF SEVEN CENTS A SHARE OR 16 MILLION EXXON ROSE 2 1/2 TO 60 5/8 THE IRVING TEXAS ENERGY COMPANY HAD A FOURTHQUARTER PROFIT OF 112 A SHARE OR 14 BILLION COMPARED WITH YEARAGO NET OF 89 CENTS A SHARE OR 11 BILLION OBSERVERS WERE LOOKING FOR LOWER PERSHARE EARNINGS IN THE LATEST QUARTER CHEVRON INCREASED BY 2 1/4 TO 70 AFTER THE SAN FRANCISCO PETROLEUM COMPANY RECORDED FOURTHQUARTER NET INCOME OF 330 A SHARE OR 1 BILLION INCLUDING A 546 MILLION GAIN A YEAR AGO NET WAS 11 CENTS A SHARE OR 39 MILLION AFTER A RESTRUCTURING CHARGE OF 244 MILLION STOCK PRICES GAINED FROM THE START AND CONTINUED CLIMBING THROUGHOUT THE SESSION SCATTERED LATE SELLING PROGRAMS TRIMMED SOME OF THE MARKET'S GAINS BUT STOCKS PROMPTLY REBOUNDED THE PACE OF TRADING WAS FAST 288010000 SHARES CHANGED HANDS COMPARED WITH FRIDAY'S 293250000 ADVANCERS OVERWHELMED DECLINERS 1348 TO 646 TWO OTHER BLUE CHIP ISSUES ALSO SPEARHEADED THE RALLY SEARS CLIMBED 1 7/8 TO 50 3/4 AFTER IT UNVEILED A RESTRUCTURING PLAN THAT WILL RESULT IN A 17 BILLION FOURTHQUARTER CHARGE THE CHICAGO RETAILER SAID IT WILL PHASE OUT US CATALOG OPERATIONS CLOSE UNPROFITABLE RETAIL AND SPECIALTY STORES AND STREAMLINE OR DISCONTINUE VARIOUS UNPROFITABLE ACTIVITIES SEARS SAID IT ALSO WILL OFFER A VOLUNTARY EARLY RETIREMENT PROGRAM TO ABOUT 4000 SALARIED EMPLOYEES PHILIP MORRIS ROSE 1/2 TO 72 3/4 SALOMON BROTHERS INCREASED ITS INVESTMENT RATING ON THE COMPANY TO BUY FROM HOLD SALOMON SAID IT IS OPTIMISTIC ABOUT THE COMPANY'S CHANCES IN A TOBACCO LIABILITY LAWSUIT SALOMON ALSO CITED ITS BELIEF THAT EARNINGS ESTIMATES FOR THE COMPANY ARE SOLID BECAUSE OF COSTCUTTING AND SHARE BUYBACKS ANOTHER BLUECHIP STOCK CATERPILLAR SLIPPED 1/2 TO 54 3/4 THE PEORIA ILL CONSTRUCTION EQUIPMENT MAKER REPORTED A FOURTHQUARTER LOSS OF TWO CENTS A SHARE OR 2 MILLION COMPARED WITH A YEARAGO LOSS OF 316 A SHARE OR 318 MILLION EUGENE PERONI JANNEY MONTGOMERY SCOTT'S DIRECTOR OF TECHNICAL RESEARCH ALSO TIED YESTERDAY'S GAINS IN THE MARKET TO A LARGE AMOUNT OF CASH THAT CONTINUES TO LINGER ON THE SIDELINES WAITING TO GET SPENT THE MARKET WAS JUST WAITING FOR AN EXCUSE TO RALLY HE SAID BUT CAUTIONED THE POSSIBILITY OF GETTING BROADSIDED IS BECOMING INCREASINGLY SIGNIFICANT AMERICAN EXPRESS LOST 1/2 TO 25 1/8 THE COMPANY SAID IT WAS INSTALLING HARVEY GOLUB AS CHIEF EXECUTIVE ENDING A FOURMONTH BOARDROOM POWER STRUGGLE JAMES D ROBINSON III THE CURRENT CHAIRMAN AND CHIEF EXECUTIVE WILL STEP DOWN AS CHIEF EXECUTIVE IN AN UNEXPECTED MOVE AMERICAN EXPRESS SAID MR ROBINSON WILL HEAD THE COMPANY'S SHEARSON LEHMAN BROTHERS UNIT THE COMPANY ALSO SAID IT RECORDED A FOURTHQUARTER PROFIT OF 15 CENTS A SHARE OR 82 MILLION COMPARED WITH YEAREARLIER 47 CENTS A SHARE OR 237 MILLION MERRILL LYNCH ADDED 3/4 TO 67 7/8 AFTER THE COMPANY POSTED FOURTHQUARTER PROFIT OF 196 A SHARE OR 2214 MILLION COMPARED WITH YEARAGO NET OF 145 A SHARE OR 1706 MILLION CHESAPEAKE CORP FELL 2 1/2 TO 20 THE RICHMOND VA PAPER PRODUCTS MAKER REPORTED FOURTHQUARTER NET INCOME OF FIVE CENTS A SHARE OR 12 MILLION WHICH INCLUDED A CHARGE OF 34 MILLION FOR REORGANIZATION AND EXPENSES A YEAR AGO THE COMPANY HAD NET INCOME OF 28 CENTS A SHARE OR 56 MILLION FOUNDATION HEALTH ROSE 1 7/8 TO 41 1/4 THE RANCHO CORDOVA CALIF HEALTH CARE PROVIDER POSTED FISCAL SECONDQUARTER NET INCOME OF 32 CENTS A SHARE OR 96 MILLION ON A 124 MILLION CHARGE RELATING TO TWO ACQUISITIONS THAT COMPARES WITH YEAREARLIER NET INCOME OF 46 CENTS A SHARE OR 125 MILLION BROAD INC ADVANCED 1 1/4 TO 32 1/4 THE COMPANY HAD FISCAL FIRSTQUARTER NET INCOME OF 63 CENTS A SHARE OR 271 MILLION UP FROM NET OF 39 CENTS A SHARE OR 144 MILLION THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 316 TO 40952 THERE WERE 348 GAINERS AND 260 DECLINERS 9301260165 930126 FINANCING BUSINESS FLEET FINANCINAL GROUP INC FLEET FINANCIAL GROUP INC PROVIDENCE RI SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AN OFFERING OF 10 MILLION COMMON SHARES PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE POSSIBLE REPURCHASE OF PREFERRED STOCK UNDERWRITERS ARE LED BY MERRILL LYNCH & CO FLEET CURRENTLY HAS 121 MILLION SHARES OUTSTANDING 9301260164 930126 TJX COS SECURITIES SWAP FRAMINGHAM MASS TJX COS SAID BONDHOLDERS EXCHANGED ALL 698 MILLION OF ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2010 FOR 31 MILLION COMMON SHARES THE EXCHANGE BRINGS TO 729 MILLION TJX'S COMMON SHARES OUTSTANDING TJX AN OPERATOR OF SPECIALTY RETAIL CLOTHING STORES SAID THE EXCHANGE WON'T DILUTE EARNINGS FIGURES AS THE SHARES WERE ALREADY INCLUDED IN CALCULATIONS 9301260163 930126 WHO'S NEWS LANDSING PACIFIC FUND LANDSING PACIFIC FUND SAN MATEO CALIF NORMAN H SCHEIDT 58 YEARS OLD A PRINCIPAL OF INDEPENDENT HOLDINGS INC A SAN FRANCISCO REAL ESTATE MANAGEMENT AND DEVELOPMENT CONCERN WAS NAMED A DIRECTOR OF THIS REAL ESTATE INVESTMENT TRUST HIS ELECTION FILLS A VACANCY CREATED IN NOVEMBER 9301260162 930126 CBOT AGREES TO ACQUIRE THE FALTERING COMEX CHICAGO'S COUP SHOWS STRENGTH OF ITS MARKETS BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OF TRADE THE WORLD'S LARGEST FUTURES EXCHANGE SAID IT TENTATIVELY AGREED TO ACQUIRE THE FALTERING COMMODITY EXCHANGE IN NEW YORK IN WHAT WOULD BE THE FIRST MAJOR CONSOLIDATION OF US COMMODITIES MARKETS THE MERGER AMOUNTS TO AN ADMISSION BY THE COMMODITY EXCHANGE OR COMEX THAT ITS CORE MARKETS IN GOLD AND SILVER CRIPPLED BY YEARS OF DECLINING INFLATION ARE DEAD IN THE WATER AND UNLIKELY TO REGAIN MOMENTUM SOON THE MERGER ALSO REPRESENTS THE TRIUMPH OF THE CHICAGO COMMODITY MARKETS WHICH HAVE GONE BEYOND THEIR AGRICULTURAL BEGINNINGS TO DEVELOP BOOMING MARKETS IN FINANCIAL FUTURES FOR STOCKS BONDS AND CURRENCIES UNDER THE TENTATIVE AGREEMENT BETWEEN THE TWO EXCHANGES THE COMEX THE NATION'S FOURTHBIGGEST COMMODITY EXCHANGE WOULD TURN OVER ITS OWNERSHIP AND VOTING RIGHTS TO THE CBOT AND BECOME A UNIT OF THE CHICAGO EXCHANGE THE DEAL IS SUBJECT TO APPROVAL BY THE COMMODITY FUTURES TRADING COMMISSION AND MEMBERS OF THE CBOT AND THE COMEX THE TWO EXCHANGES WOULD CONTINUE TO OPERATE SEPARATELY BUT WOULD COMBINE MANY BACKOFFICE OPERATIONS INCLUDING CLEARING FACILITIES THAT COULD RESULT IN MILLIONS OF DOLLARS IN ANNUAL SAVINGS THE CBOT WOULDN'T PAY ANY MONEY TO ACQUIRE COMEX WHICH IS OWNED BY ITS 772 MEMBERS RATHER A TRUST FUND WOULD BE ESTABLISHED TO BUY OUT ANY COMEX MEMBERS WHO WANTED TO SELL THEIR SEATS THE MONEY PUT INTO THE FUND ABOUT 10 MILLION A YEAR OVER FIVE YEARS WOULD COME FROM FUTURE COMEX OPERATING REVENUES SAID PATRICK H ARBOR CBOT CHAIRMAN WHILE CBOT OFFICIALS TERMED THE DEAL A FRIENDLY MERGER OTHERS WEREN'T SO SURE THAT COMEX TRADERS WHO MUST ULTIMATELY APPROVE THE DEAL WILL BE WILLING TO BE EFFECTIVELY SWALLOWED UP BY CBOT ONLY FOUR COMEX MEMBERS WILL HOLD SEATS ON THE 29MEMBER JOINT BOARD TO BE CREATED BY THE MERGER WHAT'S MORE THE STRUGGLING COMEX TRADERS WON'T HAVE ACCESS TO SOME OF CHICAGO'S MOST LUCRATIVE MARKETS INCLUDING INTERESTRATES FUTURES AND AGRICULTURAL PRODUCTS SOME FUTURES INDUSTRY LEADERS WHILE APPLAUDING THE PROPOSED MERGER WERE SKEPTICAL THAT IT WOULD GO THROUGH MERGERS OF SOME OR ALL OF THE NEW YORK COMMODITY EXCHANGES HAVE BEEN PROPOSED AND REPROPOSED OVER THE YEARS BUT PERSONALITY DIFFERENCES AND TURF CONCERNS HAVE BLOCKED COMPLETION THIS IS A VARIATION ON A FAMILIAR THEME SAID ARNOLD STALOFF PRESIDENT OF BLOOM STALOFF CORP WHO WAS FORCED OUT IN 1990 AS PRESIDENT OF COMEX THERE HAVE BEEN OTHER ISSUES WHICH EXCHANGE BOARDS HAVE SUPPORTED BEFORE THE DETAILS ARE WORKED OUT AND IN WORKING OUT THE DETAILS THE AGREEMENT HAS FALLEN APART LAST YEAR THE COMEX AND THE COFFEE SUGAR & COCOA EXCHANGE SHELVED PLANS FOR A FULLSCALE MERGER IN 1991 THE COMEX GOVERNORS UNANIMOUSLY REJECTED A PROPOSED MERGER WITH THE NEW YORK MERC SOME TRADERS SPECULATED THAT THE CBOT'S OFFER MIGHT TRIGGER NEW TALKS BETWEEN THE COMEX AND THE NEW YORK MERC FLOOR TRADERS AT THE COMEX SAID THEY HAD BEEN STUNNED BY THE NEWS WE KNEW NOTHING ABOUT IT WHEN WE GOT IN THIS MORNING SAID ONE GOLD TRADER MANY OF THE MEMBERS SAID THEY WERE UPSET ABOUT WHAT ONE DESCRIBED AS THE CLANDESTINE WAY THE MERGER AGREEMENT WAS NEGOTIATED TRADERS ATTENDING A LATE AFTERNOON MEMBERSHIP MEETING JUST OFF THE COMEX TRADING FLOOR WHICH IS LOCATED INSIDE NEW YORK'S WORLD TRADE CENTER SAID THAT ABOUT HALF THE MEMBERS WHO SPOKE VOICED OBJECTIONS TO THE PROPOSED TAKEOVER IN ANY EVENT FUTURES INDUSTRY INSIDERS SAID THE DEAL PROBABLY MARKS THE BEGINNING OF A GLOBAL TREND TOWARD ACQUISITION OF SMALL FRINGE FUTURES EXCHANGES BY LARGER ONES CONSOLIDATION IS GOING TO OCCUR IN THE FUTURES INDUSTRY SAID RICHARD L SANDOR A CBOT DIRECTOR WHO HELPED PUT TOGETHER THE COMEX DEAL EVENTUALLY WE WILL SEE FAR FEWER EXCHANGES BUT ONES THAT ARE BIGGER MORE POWERFUL AND MORE CAPABLE OF PROVIDING COMPETITIVE SERVICES BUT SOME FUTURES TRADERS AREN'T SURE THE COMEX DEAL IS A STEP IN THE RIGHT DIRECTION PERSONALLY I'M NOT IN FAVOR OF IT SAYS WILLIAM WALSER EXECUTIVE VICE PRESIDENT AT CHICAGO CORP A CHICAGO FIRM WITH A LARGE FUTURES BROKERAGE BUSINESS RIGHT NOW COMPETITION BETWEEN FUTURES EXCHANGES HELPS KEEP DOWN THE COSTS TO OUR CUSTOMERS OF FLOOR BROKERAGE SERVICES AND OTHER FEES IF THEY CONSOLIDATE INTO A SMALL NUMBER OF EXCHANGES THERE WON'T BE A LOT OF COMPETITION TO KEEP THESE COSTS DOWN THE CBOT HOPES THE DEAL WILL BOOST ITS MARKET SHARE OF GLOBAL FUTURES TRADING WITH RELATIVELY SMALL INCREASES IN OPERATING EXPENSES SINCE THE MID1980S BOTH THE CBOT AND COMEX HAVE BEEN LOSING BUSINESS TO OVERSEAS FUTURES EXCHANGES AND TO OVERTHECOUNTER MARKETS THE DECLINING MARKET SHARE IS EVIDENT MR ARBOR SAID WE HAVE TO DO SOMETHING ABOUT IT COMEX NOW RUNS AN EARLY MORNING TRADING SESSION AT 530 AM EASTERN TIME THE CBOT PLANS TO LIST SOME OF ITS NEWER FUTURES CONTRACTS ON THIS MORNING SESSION INCLUDING ITS INSURANCE FUTURES SWAP FUTURES AND SMALLCAPITALIZATION STOCKINDEX FUTURES SO THAT THEY WILL BE AVAILABLE DURING THE EUROPEAN TRADING DAY THESE CONTRACTS WILL TRADE EARLY IN THE MORNING TO COMPETE WITH EUROPEAN PRODUCTS MR ARBOR SAID BUT SOME CBOT FLOOR TRADERS SEE THIS AS A FUTILE GESTURE THERE'S NO WAY THEY'RE GOING TO BE ABLE TO COMPETE WITH EUROPE SAYS JIM HEINZ A TRADER IN THE CBOT'S HUGE TREASURYBOND FUTURES TRADING PIT THEY'D BE BETTER SUITED TO TRADE PRODUCTS IN OUR OWN TIME ZONE SUCH AS LATIN AMERICAN DEBT CONTRACTS THE DEAL THAT WAS ANNOUNCED YESTERDAY WAS CONCEIVED LAST NOVEMBER BY MR SANDOR AN INFLUENTIAL FUTURES INDUSTRY FIGURE WHO DESIGNED THE CBOT'S HUGELY POPULAR BOND FUTURES CONTRACT HE SAID HE BROACHED THE IDEA OF A POSSIBLE MERGER TO DONNA REDEL CHAIRPERSON OF THE COMEX AT THAT TIME BUT THE SPECIFICS OF THE DEAL APPARENTLY CAME TOGETHER IN ONLY THE PAST 10 DAYS AFTER MR SANDOR BROUGHT THE IDEA TO MR ARBOR WHO BECAME CBOT CHAIRMAN IN JANUARY MANY DETAILS WERE SETTLED IN MEETINGS BETWEEN MESSRS ARBOR AND SANDOR AND MS REDEL IN WASHINGTON LAST TUESDAY AND WEDNESDAY I'VE NEVER SEEN THIS INSTITUTION ACT WITH SUCH SPEED AND EFFICIENCY MR SANDOR SAID TRADING IN COMEX MEMBERSHIPS WHICH ARE BOUGHT AND SOLD LIKE SHARES OF STOCK WAS SUSPENDED UNTIL MEMBERS OF BOTH THE CBOT AND COMEX HAVE A CHANCE TO VOTE ON THE PROPOSAL MS REDEL SAID SHE THOUGHT COMEX SEAT PRICES CURRENTLY LANGUISHING AT 46000 WOULD RISE SUBSTANTIALLY WHEN THEY RESUME TRADING EXECUTIVES OF THE TWO EXCHANGES DIDN'T OFFER A CLEAR EXPLANATION OF WHAT COMEX MEMBERS STAND TO GAIN FROM RELINQUISHING THEIR OWNERSHIP AND STAKE IN THE MANAGEMENT OF THEIR EXCHANGE MS REDEL SAID THE CBOT'S PRODUCTS APPEAL TO A WORLDWIDE CLIENTELE AND THIS GIVES US ACCESS TO AN AUDIENCE THAT NO ONE ELSE COULD GIVE US ACCESS TO MR ARBOR SAID THE CBOT WILL TRY TO TALK TO OTHER SMALL FUTURES MARKETS IN NEW YORK AND ELSEWHERE ABOUT SIMILAR ARRANGEMENTS HE SAID THE CBOT HOPES TO BUILD A FAMILY OF FUTURES EXCHANGES COMEX AND CBOT OFFICIALS INSISTED THAT THE COMEX'S PLAN TO MOVE ITS TRADING FLOOR INTO A NEW 150 MILLION BUILDING NEAR WALL STREET IN CONJUNCTION WITH THE NEW YORK COTTON EXCHANGE THE COFFEE SUGAR AND COCOA EXCHANGE AND NEW YORK FUTURES EXCHANGE WOULDN'T BE AFFECTED BY THE CBOT TAKEOVER WE INTEND TO HONOR THOSE COMMITMENTS SAID MR ARBOR BUT OTHER COMEX TRADERS SAID THE COMEX WOULD HAVE TROUBLE PAYING FOR ITS SHARE OF THE CONSTRUCTION COSTS UNLESS THE CBOT FOOTS A LARGE PART OF THE BILL SEE RELATED STORY MOVE MAY SPUR MORE EXCHANGES TO CONSOLIDATE WSJ JAN 26 1993 MERGING COMMODITY EXCHANGES CHICAGO BOARD OF TRADE LAST SEAT PRICE 375000 NUMBER OF SEATS 1402 FULL MEMBERS MAJOR CONTRACTS FUTURES AND OPTIONS ON TREASURY BONDS 10YEAR TREASURY NOTES SOYBEANS CORN AND WHEAT COMEX LAST SEAT PRICE 46000 NUMBER OF SEATS 772 FULL MEMBERS MAJOR CONTRACTS GOLD SILVER PLATINUM COPPER 9301260161 930126 LAW LEGAL BEAT COURTS MAY NOT HELP OVERTURN MILITARY BAN ON GAYS LAWYERS SAY BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL ARE THE COURTS LIKELY TO OVERTURN THE BAN ON GAYS IN THE MILITARY IF CONGRESS DOESN'T LET THE CLINTON ADMINISTRATION DO SO DEFENSE SECRETARY LES ASPIN SAID SUNDAY THAT HE WARNED THE JOINT CHIEFS OF STAFF THAT THE COURTS WOULD INDEED GET AROUND TO IT SOONER OR LATER AND THAT THE MILITARY WOULD BE BETTER OFF COOPERATING NOW WITH THE PRESIDENT'S PROPOSAL TO LIFT THE BAN BUT GAYRIGHTS LAWYERS SAY THE HISTORY OF SUCH CASES IN THE COURTS SO FAR SUGGESTS NO SUCH LEGAL OUTCOME IS IMMINENT IT'S ABSOLUTELY NOT TRUE THAT THE COURTS ARE ON THE VERGE OF STRIKING DOWN THIS POLICY SAID PAULA ETTELBRICK LEGAL DIRECTOR OF THE LAMBDA LEGAL DEFENSE AND EDUCATION FUND A GAYRIGHTS LEGAL GROUP ONLY ONCE HAS A COURT OVERTURNED A MILITARY DISCHARGE FOR HOMOSEXUALITY AND THAT CASE WAS DECIDED ON NARROW GROUNDS THE NINTH US CIRCUIT COURT OF APPEALS RULED IN 1989 THAT EQUITABLE RULES OF FAIRNESS BARRED THE ARMY FROM DISCHARGING A MAN WHOM THE ARMY KNEW WAS GAY WHEN HE WAS DRAFTED THE MAN HAD PASSED SEVERAL REVIEWS DESPITE THE ARMY'S KNOWLEDGE OF HIS HOMOSEXUALITY ATTORNEYS FOR LESBIANS AND GAY MEN HAVE WON SOME CASES IN LOWER COURTS BUT HAVE LOST ON APPEAL THE COURTS OF APPEALS IN WASHINGTON AND CHICAGO HAVE SAID OUTRIGHT THAT THE MILITARY'S BAN IS CONSTITUTIONAL SAID JOHN I MCGUIRE A LOS ANGELES ATTORNEY REPRESENTING A 12YEAR NAVY VETERAN DISCHARGED IN MAY AFTER PUBLICLY DECLARING HIS HOMOSEXUALITY MS ETTELBRICK SAID MANY MILITARYDISCHARGE LAWSUITS WERE PUT ON HOLD IN THE HOPE THAT PRESIDENT CLINTON WILL LIFT THE BAN BUT IF THERE IS A DELAY WE HAVE TO THINK ABOUT WHETHER WE WANT TO PUSH THESE IN THE COURTS SHE SAID WE DON'T WANT TO BECAUSE WE DON'T THINK WE'RE GOING TO WIN ONE NEW VARIABLE THOUGH COULD AFFECT FUTURE CASES LAWYERS SAY IF THE CLINTON ADMINISTRATION ASSERTED IN COURT THAT THE EXECUTIVE BRANCH NO LONGER WANTED THE BAN AND STARTED MAKING CONSTITUTIONAL ARGUMENTS AGAINST IT SOME JUDGES MIGHT CHANGE THEIR OWN ANALYSES OF THE ISSUES THE LAWYERS SUGGEST ATTORNEYS FOR LESBIANS AND GAY MEN GENERALLY HAVE ARGUED IN THE COURT CASES THAT THE 14TH AMENDMENT'S EQUALPROTECTION CLAUSE BARS THE MILITARY FROM TREATING HOMOSEXUAL SERVICE MEMBERS DIFFERENTLY THE GOVERNMENT THUS FAR HAS ALWAYS RESPONDED THAT IT HAS LEGITIMATE REASONS TO DO SO BECAUSE ALLOWING OPEN HOMOSEXUALS IN THE MILITARY WOULD HARM MORALE AND GOOD ORDER AND WOULD ALLOW SECURITY BREACHES OPENLY LESBIAN AND GAY SERVICE MEMBERS ALSO WOULD FACE PREJUDICE AND EVEN VIOLENCE THE GOVERNMENT HAS SAID EVEN OUTSIDE THE MILITARY CONTEXT GAYS AS A GROUP TYPICALLY HAVEN'T BEEN AFFORDED SPECIAL PROTECTION UNDER THE EQUALPROTECTION CLAUSE UNLIKE FOR EXAMPLE RACIAL OR RELIGIOUS GROUPS LAWYERS FOR LESBIANS AND GAY MEN ARE PINNING THEIR HOPES ON PRUITT VS CHENEY A LAWSUIT IN WHICH THE NINTH CIRCUIT RULED IN 1991 THAT THE GOVERNMENT MUST PROVE THAT ITS ARGUMENTS ON THE IMPACT OF LIFTING THE BAN ARE GROUNDED IN FACT THE CASE INVOLVING A FORMER ARMY CAPTAIN DISCHARGED AFTER REVEALING THAT SHE IS A LESBIAN IS AWAITING TRIAL IN CALIFORNIA IN THE PRUITT CASE GAYRIGHTS LAWYERS PLAN TO COUNTER GOVERNMENT ARGUMENTS ABOUT MORALE WITH THE NINTH CIRCUIT'S STATEMENT THAT IT WON'T ACCEPT PREJUDICE WITHIN THE MILITARY AS A RATIONALE FOR THE BAN BUT EVEN IF MS PRUITT PREVAILS GAYRIGHTS LAWYERS FEAR THAT SHE WOULD ULTIMATELY LOSE ON APPEAL THE SUPREME COURT IS A SERIOUS OBSTACLE SAID KATHLEEN M GILBERD COCHAIR OF THE MILITARY LAW TASK FORCE A SAN DIEGO ADVOCACY GROUP FOR LESBIANS AND GAY MEN IN UNIFORM THE HIGH COURT HAS NEVER ADDRESSED THE ISSUE DIRECTLY BUT GAYRIGHTS ATTORNEYS BELIEVE IT WON'T BE SYMPATHETIC HISTORICALLY COURTS ROLL OVER AND DIE WHEN ASKED TO OVERTURN A MILITARY POLICY SAID KENNETH L KARST A CONSTITUTIONALLAW PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES WHO HAS WRITTEN ABOUT THE BAN FOR EXAMPLE THE MILITARY'S SEGREGATION OF AFRICANAMERICANS WITH WHICH THE BAN ON GAYS IS OFTEN COMPARED WASN'T STOPPED BY THE COURTS BUT BY AN EXECUTIVE ORDER FROM PRESIDENT TRUMAN NONETHELESS SOME GAYRIGHTS ATTORNEYS SAY THEY ARE OPTIMISTIC THAT ANY CLINTONBACKED PROPOSAL TO LIFT THE RESTRICTION ON GAYS WOULD BE HEARD SYMPATHETICALLY BY THE COURTS EVEN IF CONGRESS VOTED TO KEEP THE BAN IN PLACE CERTAINLY PRESIDENT CLINTON'S JUSTICE DEPARTMENT WOULDN'T MAKE THE SAME KINDS OF ARGUMENTS THAT PRESIDENT BUSH'S DID SAID MARC WOLENSKY A NEW YORK ATTORNEY WHO REPRESENTS A MIDSHIPMAN WHO WAS FORCED TO RESIGN FROM THE US NAVAL ACADEMY AFTER SAYING HE IS GAY FOR INSTANCE MR WOLENSKY SAID WHEN THE BUSH ADMINISTRATION UNSUCCESSFULLY SOUGHT A US SUPREME COURT REVIEW OF THE PRUITT RULING THE GOVERNMENT SAID IT SHOULD BE ALLOWED TO DISCRIMINATE AGAINST LESBIANS AND GAY MEN BECAUSE THEY ARE CRIMINALS ABOUT HALF THE STATES HAVE LAWS ON THE BOOKS THAT CRIMINALIZE GAY AND LESBIAN SEX I CAN'T SEE THE CLINTON ADMINISTRATION MAKING THAT ARGUMENT MR WOLENSKY SAID BUT THE BUSH ADMINISTRATION MIGHT BE ABLE TO WIN WITH IT BILLIONS OF DOLLARS IN PENSION BENEFITS ARE AT STAKE IN A BATTLEOFTHESEXES CASE BEING ARGUED TODAY BEFORE THE EUROPEAN COURT OF JUSTICE IN LUXEMBOURG SEPARATE CASES FROM BRITAIN GERMANY AND THE NETHERLANDS HAVE BEEN JOINED TOGETHER IN THE EC'S HIGHEST COURT WHICH IS EXPECTED TO CLARIFY ITS LANDMARK MAY 17 1990 RULING IN THE CASE OF BARBER VS GUARDIAN ROYAL EXCHANGE IN THAT CASE THE JUSTICES SAID MEN AND WOMEN WHO BELONG TO COMPANY PENSION PLANS MUST RECEIVE EQUAL PENSION BENEFITS BECAUSE THOSE BENEFITS ARE IN ESSENCE PART OF THEIR PAY THE RULING INVOLVED A PENSION SCHEME THAT ALLOWED WOMEN TO RETIRE WITH FULL BENEFITS AT AGE 60 WHILE GRANTING MEN ONLY REDUCED BENEFITS AT AGE 60 AND FULL BENEFITS AT 65 IN A BID TO PREVENT COMPANIES FROM BEING DELUGED WITH CLAIMS FOR BACK BENEFITS A PROTOCOL TO THE EC'S MAASTRICHT TREATY ON CLOSER POLITICAL AND ECONOMIC TIES SAYS THE BARBER RULING WILL APPLY ONLY TO AN EMPLOYEE'S SERVICE AFTER MAY 17 1990 BUT THE MAASTRICHT PACT'S RATIFICATION IS FAR FROM CERTAIN SO THE PENSION INDUSTRY WANTS A DEFINITIVE ANSWER FROM THE EC COURT ON WHETHER IT COULD BE FACED WITH MOUNTAINS OF CLAIMS FOR BACK BENEFITS WE NEED ANSWERS AND CLARITY SAID JOHN CUNLIFFE A PARTNER AT THE LONDON LAW FIRM MCKENNA & CO WHICH IS SERVING AS TRUSTEES FOR THE COLOROLL GROUP PENSION FUND IN ONE OF THE CASES BEFORE THE COURT THE WALLPAPER COMPANY WENT INTO RECEIVERSHIP IN 1990 BUT THE TRUSTEES HAVE BEEN UNABLE TO DISTRIBUTE PROCEEDS FROM ITS PENSION SCHEMES BECAUSE THEY DON'T KNOW HOW MUCH MONEY THOUSANDS OF PENSIONERS ARE ENTITLED TO UNDER THE BARBER RULING THE DUTCH CASE INVOLVES A PENSION SCHEME FOR WINDOW WASHERS THAT PROVIDED PENSIONS FOR WIDOWS BUT NOT WIDOWERS WHILE THE GERMAN DISPUTE IS SIMILAR TO THE BARBER CASE THE US SUPREME COURT IN A SERIES OF RULINGS IN THE LATE 1970S AND EARLY 1980S SAID SEXBASED ACTUARIAL TABLES CANNOT BE USED IN COMPUTING PENSION CONTRIBUTIONS OR PAYMENTS ALTHOUGH WOMEN ON AVERAGE LIVE LONGER THAN MEN THE COURT SAID A PARTICULAR WOMAN WILL NOT NECESSARILY LIVE LONGER THAN A PARTICULAR MAN ENROLLED IN THE SAME PENSION PLAN THE EC COMMISSION BACKS SUCH REASONING IN THE COLOROLL CASE WHO'S NEWS ALAN CHARLES RAUL HAS JOINED THE ENVIRONMENTAL LAW FIRM BEVERIDGE & DIAMOND AS DIRECTOR OF ITS WASHINGTON OFFICE MR RAUL FORMER GENERAL COUNSEL OF THE US DEPARTMENT OF AGRICULTURE WILL PRACTICE ENVIRONMENTAL NATURAL RESOURCES AND FOOD AND SAFETY LAW CHARLES GOLDSMITH CONTRIBUTED TO THIS ARTICLE 9301260160 930126 WHO'S NEWS KMART CORP KMART CORP TROY MICH CHARLES E STEINBRUECK PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PACE MEMBERSHIP WAREHOUSE INC SUBSIDIARY HAS RESIGNED TO PURSUE OTHER BUSINESS INTERESTS THE RETAIL CONCERN SAID MR STEINBRUECK ONE OF THE FOUNDING EXECUTIVES OF PACE WILL BE SUCCEEDED BY 48YEAROLD THOMAS R GRIMM EFFECTIVE FEB 8 MR GRIMM FOUNDED PRICE SAVERS WAREHOUSE CLUB IN 1983 AND WAS ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER 9301260159 930126 WHAT'S NEWS WORLDWIDE CLINTON TOLD PENTAGON CHIEFS HE WILL LIFT A BAN ON GAYS IN THE MILITARY THE PRESIDENT MET WITH THE JOINT CHIEFS OF STAFF AT THE WHITE HOUSE TO DISCUSS HIS DECISION TO REVOKE THE BAN ON HOMOSEXUALS IN THE ARMED FORCES THE MILITARY OFFICIALS OBJECTED BUT EXPRESSED THEIR RESPECT FOR HIS DECISIONMAKING POWER AS COMMANDER IN CHIEF A PRESIDENTIAL SPOKESMAN SAID CLINTON PLANS TO TAKE STEPS WITHIN A WEEK TO END THE BAN DESPITE RESISTANCE IN CONGRESS WHERE A VOTE ON THE ISSUE COULD COME THIS WEEK THE TWO PEOPLE WHOSE HELP CLINTON MOST NEEDS TO OVERCOME CONGRESSIONAL OPPOSITION JOINT CHIEFS CHAIRMAN POWELL AND SENATE ARMED SERVICES COMMITTEE CHAIRMAN NUNN HAVE HARDENED THEIR POSITION AGAINST HIM NUCLEAR INSPECTORS PRESSED IRAQ FOR A FULL LIST OF ITS FOREIGN SUPPLIERS THE UN TEAM REQUESTED THE NAMES OF THE REMAINING SUPPLIERS OF BAGHDAD'S NUCLEAR ARMS PROGRAM AND SAID OFFICIALS ARE STUDYING AN 80NAME LIST COMPILED EARLIER IRAQ'S DEPUTY PRIME MINISTER AZIZ MEANWHILE CALLED FOR BETTER RELATIONS WITH WASHINGTON CLINTON NAMED HIS WIFE TO LEAD A HEALTH CARE TASK FORCE THAT WILL WRITE LEGISLATION TO BE SUBMITTED TO CONGRESS IN MAY IN MAKING THE APPOINTMENT WHICH WAS EXPECTED CLINTON TOOK STEPS TO FULFILL HIS PLEDGE TO CONTROL HEALTH COSTS AND INCREASE ACCESS FOR THE POOR HILLARY CLINTON WON'T RECEIVE A SALARY FOR HER WORK THE WHITE HOUSE IS TELLING ARAB GOVERNMENTS IT CANNOT SUPPORT A DRIVE IN THE UN TO PUNISH ISRAEL FOR EXPELLING MORE THAN 400 PALESTINIANS TO SOUTH LEBANON THE DISPUTE SHOULD BE SETTLED BY THE PARTIES INVOLVED WASHINGTON OFFICIALS SAID FEDERAL JUDGES GENERALLY MAY NOT STOP STATES FROM EXECUTING DEATHROW INMATES WHO RAISE NEW CLAIMS OF INNOCENCE AFTER EXHAUSTING OTHER APPEALS THE SUPREME COURT RULED BUT THE COURT'S CONSERVATIVE JUSTICES COULDN'T AGREE ON HOW FAR THEY SHOULD GO IN PREVENTING FEDERAL REVIEW OF STATE COURT VERDICTS THE CLINTON ADMINISTRATION MAY TAKE A TOUGHER LINE ON THE WAR IN BOSNIA SECRETARY OF STATE CHRISTOPHER SUGGESTED MEANWHILE AN ATTEMPTED TRUCE FAILED IN CROATIA AS TWO FRENCH PEACEKEEPERS WERE KILLED AND THREE WOUNDED AT THE UN THE SECURITY COUNCIL DEMANDED THE WITHDRAWAL OF CROATIAN TROOPS FROM SERBINHABITED AREAS OF CROATIA CHRISTOPHER SAID HE BACKED EXPANDING THE SECURITY COUNCIL SO THAT GERMANY AND JAPAN COULD BE PERMANENT MEMBERS BUT HE GAVE NO TIMETABLE FOR THE CHANGE WHICH IS EXPECTED TO BE CONTROVERSIAL US AND BELGIAN TROOPS BATTLED A SOMALI MILITIA NEAR THE SOUTHERN PORT OF KISMAYU DESTROYING SIX HEAVILY ARMED MILITIA TRUCKS AND REPORTEDLY INJURING 40 SOMALIS IN THE CAPITAL MOGADISHU A US MARINE WAS SHOT AND KILLED WHILE ON PATROL HE WAS THE THIRD AMERICAN KILLED IN THE RELIEF EFFORT YELTSIN CHIDED THE US FOR TRYING TO DICTATE TERMS TO THE LEADERS OF IRAQ AND YUGOSLAVIA THE RUSSIAN PRESIDENT RECENTLY CRITICIZED BY HARDLINERS FOR ABANDONING LONGTIME ALLIES IN IRAQ AND FELLOW SLAVS IN SERBIA APPEARED TO AIM HIS REMARKS AT BUSH YELTSIN SAID CLINTON SEEMED MORE INCLINED TOWARD DIALOGUE WITH IRAQ RUSSIA AGREED IN PRINCIPLE TO COMPENSATE UKRAINE FOR GIVING UP ITS NUCLEAR WEAPONS A KEY STEP TOWARD REDUCING THE FORMER SOVIET NUCLEAR ARSENAL ACCORDING TO A TOP MILITARY COMMANDER HE SAID THE OFFER COULD INCLUDE FUEL FOR NUCLEAR POWER PLANTS IRENE SEALE WAS SENTENCED TO 20 YEARS IN PRISON WITHOUT THE CHANCE OF PAROLE FOR HELPING HER HUSBAND CARRY OUT THE FATAL ABDUCTION OF EXXON EXECUTIVE SIDNEY RESO IN APRIL 1992 THE NEW JERSEY WOMAN HAD CLAIMED THAT BATTERING BY HER HUSBAND LED HER TO COMMIT THE CRIME HER HUSBAND ARTHUR IS SERVING A LIFE SENTENCE FBI DIRECTOR SESSIONS SAID HE WANTS TO TALK TO PRESIDENT CLINTON ABOUT CHARGES THAT HE USED GOVERNMENT MONEY FOR PERSONAL BENEFIT CLINTON'S SPOKESMAN COMMENTED ANEW THAT THE ALLEGATIONS IN THE JUSTICE DEPARTMENT REPORT WERE DISTURBING BUT ADDED THAT THE WHITE HOUSE INTENDS TO GIVE SESSIONS AMPLE OPPORTUNITY TO REBUT THEM ANGOLA REBEL LEADER SAVIMBI IS READY TO SIGN A TRUCE WITH THE DOS SANTOS GOVERNMENT SOUTH AFRICA'S FOREIGN MINISTER SAID MEANWHILE UN OFFICIALS IN ANGOLA WERE TRYING TO BRING THE GOVERNMENT AND SAVIMBI'S UNITA REBELS TOGETHER FOR PEACE TALKS 9301260158 930126 BUSINESS BRIEF ROCKWELL TO PURCHASE UNIT OF SUNDSTRAND THAT MAKES AVIONICS SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP SAID IT SIGNED A PRELIMINARY AGREEMENT TO BUY SUNDSTRAND CORP'S DATA CONTROL DIVISION FOR 225 MILLION ROCKWELL CHAIRMAN DONALD R BEALL SAID BUYING THE SUNDSTRAND DIVISION WHICH DESIGNS AND MANUFACTURES AVIONICS SUCH AS INSTRUMENT SYSTEMS FLIGHT DATA RECORDERS AND COCKPIT VOICE RECORDERS AFFORDS ROCKWELL A SIGNIFICANT OPPORTUNITY TO EXPAND OUR COLLINS AIR TRANSPORT AND GENERAL AVIATION AVIONICS PRODUCT LINES ROCKWELL'S COLLINS COMMERCIAL AVIONICS BASED IN CEDAR RAPIDS IOWA EMPLOYS 6100 PEOPLE AND PRODUCES COMMUNICATIONS NAVIGATION FLIGHT CONTROL AND POSITION LOCATION PRODUCTS FOR TRANSPORTATION COMPANIES IT ACCOUNTS FOR NEARLY ALL THE 132 BILLION OF ANNUAL COMMERCIAL AVIONICSRELATED SALES OF ROCKWELL WHICH IS INVOLVED IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES SUNDSTRAND DATA CONTROL HAS PLANTS IN REDMOND AND MOSES LAKE WASH AND PRESCOTT ARIZ AND EMPLOYS 1500 IT HAD 1991 SALES OF ABOUT 216 MILLION IN ROCKFORD ILL SUNDSTRAND SAID IT BELIEVES THE UNIT BEING SOLD WILL BE BETTERPOSITIONED TO SERVE FUTURE INTEGRATED COCKPIT AND FLIGHT SAFETY MARKETS BY TEAMING WITH A CONCERN WHOSE CORE BUSINESS IS AVIONICS ROCKWELL SAID IT HOPES TO COMPLETE THE PURCHASE IN THE NEXT FEW MONTHS IT IS STILL SUBJECT TO A FINAL AGREEMENT AND REGULATORY APPROVAL AMONG OTHER CONDITIONS 9301260157 930126 CONTINENTAL CAN ACQUISITION SYOSSET NY CONTINENTAL CAN CO SAID IT AGREED THROUGH A FRENCH UNIT TO ACQUIRE A STAKE IN A MAJOR CZECH CAN COMPANY THE AGREEMENT WAS NEGOTIATED WITH THE CZECH GOVERNMENT THE MAJOR STOCKHOLDER THE ACCORD GIVES CONTINENTAL BOARD CONTROL AND 34 OF OBALEX SA THE CZECH PLANT IN THE FIRST YEAR CONTINENTAL HAS THE OPTION OVER THE NEXT THREE YEARS TO INCREASE OWNERSHIP TO 51 IN RETURN FOR THE STAKE THE AMERICAN PACKAGING MANUFACTURER WILL PROVIDE OBALEX WITH EQUIPMENT AND TECHNICAL EXPERTISE OBALEX HAS ANNUAL SALES OF ABOUT 10 MILLION FROM MANUFACTURING CANS FOR FOOD PAINT AND THE AUTO INDUSTRY 9301260156 930126 WHO'S NEWS CMS ENERGY CORP CMS ENERGY CORP DEARBORN MICH KENNETH WHIPPLE 58 YEARS OLD WAS ELECTED TO THE BOARD OF THIS DIVERSIFIED ENERGY COMPANY AND ITS PRINCIPAL UNIT CONSUMERS POWER CO HE IS EXECUTIVE VICE PRESIDENT OF FORD MOTOR CO AND PRESIDENT OF THE FORD FINANCIAL SERVICES GROUP HE FILLS A VACANCY ON THE BOARD 9301260155 930126 IVACO'S STAKE IN LACLEDE STEEL ST LOUIS LACLEDE STEEL CO SAID IVACO INC IS CONSIDERING DISPOSING OF ITS STAKE IN LACLEDE IVACO WHICH IS BASED IN MONTREAL OWNS 498 OF LACLEDE'S COMMON STOCK OUTSTANDING AND HAS AN OPTION TO ACQUIRE AN ADDITIONAL 26 LACLEDE SAID THIS STEP IS BEING TAKEN AS PART OF IVACO'S OVERALL PLAN TO REDUCE DEBT AND STRENGTHEN ITS FINANCIAL POSITION IN LATE OVERTHECOUNTER TRADING YESTERDAY LACLEDE SHARES WERE QUOTED AT 21 DOWN 50 CENTS A SHARE 9301260154 930126 ACC TO SELL UNIT ROCHESTER NY ACC CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO SELL ITS DANBURY CELLULAR TELEPHONE CO TO A UNIT OF HORIZON CELLULAR TELEPHONE CO DOYLESTOWN PA FOR 435 MILLION HORIZON A CLOSELY HELD OPERATOR OF CELLULAR TELEPHONE SYSTEMS PRIMARILY IN RURAL AREAS IS ACQUIRING ACC'S RICHMOND KYBASED CELLULAR COMPANY WHICH SERVES MORE THAN 4200 SUBSCRIBERS IN A 28COUNTY AREA OF CENTRAL KENTUCKY 9301260153 930126 WASSERSTEIN PERELLA FORMS UNIT TO MANAGE FIXEDINCOME FUNDS NEW YORK WASSERSTEIN PERELLA GROUP INC CONTINUING TO DIVERSIFY AWAY FROM ITS MERGER ADVISORY BUSINESS CREATED A VEHICLE TO PROVIDE FIXEDINCOME MONEY MANAGEMENT THE WASSERSTEIN FIRM TEAMED WITH ROLL & ROSS ASSET MANAGEMENT CORP OF BLUE BELL PA TO FORM WP CAPITAL MANAGEMENT LP A PARTNERSHIP THAT WILL MANAGE MONEY FOR INSTITUTIONS AND FOR INDIVIDUALS VIA CLOSEDEND MUTUAL FUNDS THE NEW VENTURE WILL MANAGE ASSETBACKED SECURITIES SUCH AS MORTGAGES CREDITCARD RECEIVABLES AND CAR LOANS AS WELL AS SOVEREIGN COUNTRY DEBT SEVERAL OF THE NEW UNIT'S KEY PEOPLE HAVE EXPERIENCE IN MORTGAGE TRADING AND PRICING INCLUDING RICHARD ROLL OF ROLL & ROSS WHO ONCE MANAGED MORTGAGE RESEARCH AT GOLDMAN SACHS & CO WASSERSTEIN MANAGING DIRECTORS ROBERT MAUM AND ROBERT GEITZ HAVE WORKED IN MORTGAGES AT SALOMON BROTHERS INC ALONG WITH THOMAS KENDALL THE UNIT'S NEW CHIEF INVESTMENT OFFICER THE WASSERSTEIN FIRM HAS MOVED INTO JUNK BOND TRADING STOCK AND BOND UNDERWRITING AND RESEARCH EVEN AS ITS RANKING IN THE US MERGER BUSINESS HAS FALLEN THE FIRM RANKED THIRD IN THE VALUE OF ITS CLIENTS' COMPLETED DEALS INVOLVING US TARGETS IN 1989 BUT RANKED ONLY 22ND LAST YEAR ACCORDING TO SECURITIES DATA CO 9301260152 930126 WHO'S NEWS PACIFICARE HEALTH SYSTEMS INC PACIFICARE HEALTH SYSTEMS INC CYPRESS CALIF BARBARA N LUBASH WAS NAMED PRESIDENT OF PACIFIC REVIEW SERVICES A SUBSIDIARY OF THIS MANAGED HEALTHCARE ORGANIZATION MS LUBASH 40 YEARS OLD SUCCEEDS VICKI MERRILL 39 WHO WAS NAMED PRESIDENT OF A NEW DIVISION THAT IS DEVELOPING A WORKERS' COMPENSATION PROGRAM MS LUBASH HAD BEEN SENIOR VICE PRESIDENT OF PRIVATE HEALTHCARE SYSTEMS INC IRVINE CALIF 9301260151 930126 CORNING PROFIT FELL 48 IN FOURTH PERIOD AFTER TAKING A CHARGE CORNING NY WEIGHED DOWN BY LOWER RESULTS IN ITS JOINT VENTURE COMPANIES AND A RESTRUCTURING CHARGE FOR BRAZILIAN OPERATIONS CORNING INC REPORTED FOURTHQUARTER NET INCOME OF 412 MILLION OR 21 CENTS A SHARE DOWN 48 FROM 856 MILLION OR 45 CENTS A SHARE A YEAR EARLIER FOR THE YEAR AFTER TAKING A NONCASH CHARGE OF 287 MILLION OR 152 A SHARE TO ADOPT NEW ACCOUNTING RULES THE COMPANY REPORTED A LOSS OF 126 MILLION OR EIGHT CENTS A SHARE DOWN FROM A 1991 PROFIT OF 317 MILLION OR 169 A SHARE MOST OF THE ONETIME CHARGE RESULTS FROM A NEW ACCOUNTING RULE REQUIRING EMPLOYERS TO FULLY ACCRUE THE COST OF POSTRETIREMENT BENEFITS PRINCIPALLY HEALTH AND LIFE INSURANCE WALL STREET ANALYSTS HOWEVER SAID THE RESULTS GENERALLY MET THEIR EXPECTATIONS LEAVING OUT THE JOINT VENTURES ONETIME CHARGES AND A 51 MILLION CHARGE FOR THE CONTINUING EFFECT OF THE ACCOUNTING CHANGES CORNING EARNED 67 MILLION IN THE FOURTH QUARTER UP 36 FROM 494 MILLION A YEAR EARLIER THIS YEAR'S FOURTH QUARTER INCLUDES 13 WEEKS ONE MORE THAN LAST YEAR'S A SPOKESMAN DECLINED TO DISCUSS THE REASONS FOR THE BRAZILIAN CHARGE BUT IT AMOUNTED TO 321 MILLION OR 17 CENTS A SHARE AFTER TAXES AND MINORITY INTEREST SALES BY THE COMPANY'S CONSOLIDATED SUBSIDIARIES WHICH MAKE GLASS AND CERAMIC PRODUCTS AND OPTICAL GLASS FIBER AND PROVIDE LABORATORY SERVICES ROSE 20 IN THE QUARTER TO 996 MILLION FROM 826 MILLION A YEAR EARLIER FOR THE YEAR THE CONSOLIDATED SUBSIDIARIES EARNED 269 MILLION OR 142 A SHARE UP 41 FROM 191 MILLION OR 102 A SHARE LEAVING OUT ONETIME CHARGES AND THE ONGOING EFFECT OF THE ACCOUNTING CHANGE FULLYEAR SALES TOTALED 371 BILLION UP 14 FROM 1991'S 326 BILLION THE COMPANY'S INCOME FROM JOINT VENTURES AND OTHER UNCONSOLIDATED SUBSIDIARIES PLUNGED 80 IN THE FOURTH QUARTER TO 56 MILLION FROM 279 MILLION A YEAR EARLIER THE LARGEST JOINT VENTURE IS DOWCORNING INC WHICH MAKES SILICONE PLASTICS AND HAS BEEN HURT BY THE RECESSION IN EUROPE ANALYSTS SAY FOR THE YEAR THESE VENTURES EARNED 438 MILLION DOWN 61 FROM 112 MILLION IN 1991 9301260150 930126 OIL FIRMS POST EARNINGS GAINS FOR 4TH PERIOD UPTURN AT EXXON CHEVRON OTHERS COMES DESPITE SLACK WORLD ECONOMY BY CAROLYN PHILLIPS STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL BIG OIL COMPANIES REPORTED SUBSTANTIAL IMPROVEMENT IN FOURTHQUARTER NET INCOME BENEFITING FROM HIGHER NATURALGAS PRICES AND AGGRESSIVE EFFORTS TO HOLD DOWN COSTS BUT ALL OF THE COMPANIES EXXON CORP CHEVRON CORP AMOCO CORP ATLANTIC RICHFIELD CO AND UNOCAL CORP SAID THEIR GAINS CAME DESPITE A CONTINUED SLUGGISHNESS IN THE WORLD ECONOMY AND GENERALLY WEAK CRUDE OIL PRICES DURING THE PERIOD IN ADDITION EACH REPORTED A SLEW OF SPECIAL ITEMS INCLUDING LARGE ADJUSTMENTS FOR ACCOUNTING RULE CHANGES GAINS ON ASSET SALES AND CHARGES FOR RESTRUCTURING AND LAYOFFS INTERNATIONAL OPERATIONS WHICH HAVE BECOME INCREASINGLY IMPORTANT PROFIT GENERATORS FOR US COMPANIES TURNED IN MIXED RESULTS FOR THIS GROUP DURING THE QUARTER IN GENERAL WALL STREET FOUND REASON FOR OPTIMISM IN THE EARNINGS REPORTS AS WELL AS IN NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES MAY ACT TO CURB PRODUCTION AND PUSH CRUDE PRICES HIGHER ONE ANALYST ESTIMATED THAT OIL INDUSTRY STOCKS MAY HAVE GAINED 20 BILLION IN TRADING YESTERDAY ON THE EARNINGS AND OPEC NEWS THE COMPANY'S PROFIT ROSE 25 TO 14 BILLION OR 112 A SHARE FROM 112 BILLION OR 89 CENTS A SHARE A YEAR EARLIER EXXON SAID ITS LOWER OPERATING COSTS WERE A MAJOR FACTOR AND CITED RESTRUCTURING OF ITS OPERATIONS IN THE US AND CANADA THE IRVING TEXAS ENERGY CONCERN ALSO SAID IT BENEFITED FROM HIGHER NATURALGAS PRICES AND INCREASED SALES VOLUMES FOR PETROLEUM AND CHEMICAL PRODUCTS DESPITE NARROWER PROFIT MARGINS ON PETROLEUM PRODUCTS REVENUE FELL 28 TO 3016 BILLION FROM 3102 BILLION EXXON SAID THAT EARNINGS AT ITS CHEMICAL OPERATIONS FELL 40 TO 56 MILLION FROM 94 MILLION EARNINGS FROM ITS EXPLORATION AND PRODUCTION OPERATIONS ROSE 19 TO 103 BILLION WITH 845 MILLION OF THAT COMING FROM OVERSEAS OPERATIONS REFINING AND MARKETING SAW A 61 JUMP TO 420 MILLION WITH US REFINING AND MARKETING CONTRIBUTING 55 MILLION OF THAT ABOUT FLAT WITH THE YEAREARLIER QUARTER INDEED EXXON CHAIRMAN LG RAWL SAID THAT FOR THE YEAR THREEFOURTHS OF THE CORPORATION'S EARNINGS CAME FROM SOURCES OUTSIDE THE US OVERALL 1992 EARNINGS FELL 15 TO 477 BILLION OR 379 A SHARE FROM 56 BILLION OR 445 A SHARE THE LATEST YEAR INCLUDES A NET CHARGE OF 40 MILLION OR THREE CENTS A SHARE FROM ACCOUNTING RULE CHANGES REVENUE WAS ONLY SLIGHTLY LOWER AT 11648 BILLION DOWN FROM 11649 BILLION EXXON SAID ITS CAPITAL AND EXPLORATION EXPENSES FOR 1992 WERE ABOUT 876 BILLION AND THAT IT EXPECTS 1993'S EXPENDITURES TO BE ABOUT THE SAME CHEVRON'S FOURTHQUARTER PROFIT OF 109 BILLION OR 330 A SHARE INCLUDED GAINS OF 546 MILLION PRIMARILY FROM ASSET SALES ITS YEAREARLIER NET OF 39 MILLION OR 11 CENTS A SHARE CAME AFTER 244 MILLION IN SPECIAL CHARGES MOSTLY FOR RESTRUCTURING AND WORK FORCE REDUCTIONS WITHOUT THE SPECIAL ITEMS CHEVRON SAID ITS EARNINGS WOULD HAVE BEEN DOUBLE THE YEAREARLIER LEVEL DUE IN LARGE PART TO A COSTREDUCTION PROGRAM THE SAN FRANCISCOBASED COMPANY ELIMINATED 6200 JOBS IN 1992 REDUCED REFINERY CAPACITY SOLD ASSETS AND CUT COSTS COMPANYWIDE CHAIRMAN AND CHIEF EXECUTIVE OFFICER KEN DERR SAID CHEVRON'S OPERATING EXPENSES FELL 7 OR 550 MILLION IN 1992 AND WERE DOWN 12 IN THE QUARTER REVENUE FOR THE QUARTER WAS 114 BILLION UP 96 FROM 104 BILLION A YEAR EARLIER FOR CHEVRON DOMESTIC PETROLEUM OPERATIONS IMPROVED WITH WEST COAST GASOLINE PRICES MOVING HIGHER AFTER INTENSE COMPETITION IN 1991 KEPT THEM LOW AND INTERNATIONAL REFINING AND MARKETING OPERATIONS SHOWED A SIGNIFICANT DECLINE FROM A YEAR EARLIER AS WEAK ECONOMIC CONDITIONS IN MUCH OF WORLD HELD DOWN PRODUCT PRICES EARNINGS FROM ITS CHEMICALS BUSINESS REMAINED DEPRESSED CHEVRON SAID FOR THE YEAR CHEVRON'S NET OF 157 BILLION OR 463 A SHARE INCLUDED A 641 MILLION CHARGE FOR THE ADOPTION OF NEW ACCOUNTING RULES FOR 1991 CHEVRON REPORTED A PROFIT OF 129 BILLION OR 369 A SHARE REVENUE WAS 429 BILLION UP 49 FROM 409 BILLION FOR AMOCO HIGHER NATURALGAS PRICES AND PRODUCTION LEVELS AND LOWER EXPENSES GAVE ITS US EXPLORATION AND PRODUCTION OPERATIONS THE BOOST THAT PUSHED FOURTHQUARTER RESULTS HIGHER SAID H LAURANCE FULLER AMOCO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHICAGO COMPANY EARNED 548 MILLION OR 110 A SHARE THAT'S MORE THAN TRIPLE THE 153 MILLION OR 31 CENTS A SHARE REPORTED FOR THE YEAREARLIER PERIOD WHICH INCLUDED A CHARGE OF 47 MILLION OR NINE CENTS A SHARE FROM OIL SPILL LITIGATION REVENUE WAS 724 BILLION UP SLIGHTLY FROM 718 BILLION REDUCED OPERATING COSTS ALSO PUSHED REFINING AND MARKETING AND TRANSPORTATION EARNINGS HIGHER MR FULLER SAID WITH CHEMICAL OPERATIONS ALSO AIDED BY HIGHER PROFIT MARGINS MR FULLER CREDITED COSTREDUCTION PROGRAMS ANNOUNCED LAST JUNE WITH LOWERING OPERATING EXPENSES THROUGHOUT THE COMPANY FOR THE YEAR AMOCO'S NET LOSS OF 74 MILLION OR 15 CENTS A SHARE INCLUDED A CHARGE OF 924 MILLION OR 186 A SHARE FOR ADOPTING ACCOUNTING RULE CHANGES FOR 1991 AMOCO REPORTED NET INCOME OF 148 BILLION OR 298 A SHARE REVENUE EDGED DOWN TO 282 BILLION FROM 283 BILLION AMOCO'S 1992 CAPITAL AND EXPLORATION SPENDING HIT 3 BILLION AND IS BUDGETED AT 32 BILLION FOR 1993 ARCO SHOWING MARKED IMPROVEMENT IN ITS WEST COAST OPERATIONS REPORTED FOURTHQUARTER PROFIT OF 372 MILLION OR 230 A SHARE UP 39 FROM 268 MILLION OR 167 A SHARE A YEAR EARLIER REVENUE ROSE 37 TO 501 BILLION FROM 484 BILLION THE LOS ANGELESBASED OIL COMPANY BENEFITED FROM HIGHER PROFIT MARGINS IN ITS FIVESTATE WEST COAST MARKETING AREA WEST COAST GASOLINE PRICES WERE MUCH LOWER IN THE YEAREARLIER PERIOD DUE TO STEPPED UP COMPETITION FOR THE YEAR ARCO REPORTED NET OF 801 MILLION OR 496 A SHARE UP 13 FROM 709 MILLION OR 439 A SHARE IN 1991 THE LATEST RESULTS INCLUDE A CHARGE OF 392 MILLION OR 243 A SHARE FOR ADOPTING NEW ACCOUNTING RULES AS WELL AS A TAX BENEFIT OF 140 MILLION THE 1991 RESULTS INCLUDED CHARGES OF 295 MILLION FROM PERSONNEL REDUCTIONS AND PROPERTY SALES AND WRITEDOWNS REVENUE FOR THE YEAR WAS 187 BILLION UP 26 FROM 182 BILLION WHILE THE COMPANY SAW INCREASES FOR THE YEAR IN ITS OTHER BUSINESS SEGMENTS EARNINGS FROM ITS 499 STAKE IN LYONDELL PETROCHEMICAL CO CONTRIBUTED ONLY 8 MILLION IN 1992 DOWN FROM 111 MILLION A YEAR EARLIER BECAUSE OF LOWER PROFIT MARGINS AND SALES VOLUMES UNOCAL CITING COSTCUTTING AND HIGHER NATURALGAS PRICES REPORTED FOURTHQUARTER EARNINGS OF 103 MILLION OR 39 CENTS A SHARE REVERSING A YEAREARLIER LOSS OF 16 MILLION OR SEVEN CENTS A SHARE REVENUE FELL 11 TO 246 BILLION FROM 277 BILLION FOR THE YEAR THE LOS ANGELESBASED COMPANY REPORTED PROFIT OF 220 MILLION OR 85 CENTS A SHARE ALMOST TRIPLE THE 73 MILLION OR 31 CENTS A SHARE POSTED FOR 1991 UNOCAL TOO BENEFITED FROM INCREASED PROFIT MARGINS IN ITS WEST COAST OPERATIONS REVENUE FELL 77 TO 1006 BILLION FROM 109 BILLION THE COMPANY ALSO MANAGED TO CUT ITS DEBT LEVEL BY 1 BILLION IN 1992 TO 37 BILLION AT YEAR'S END AND SAID IT EXPECTS TO CUT ANOTHER 500 MILLION OVER THE NEXT FOUR YEARS UNOCAL SAID ITS CAPITAL EXPENDITURES TOTALED 959 MILLION IN 1992 WITH EXPLORATION EXPENSE AT 170 MILLION THE COMPANY SAID ITS FIRSTQUARTER EARNINGS WILL INCLUDE A CHARGE OF 120 MILLION TO REFLECT ADOPTION OF A NEW ACCOUNTING STANDARD 9301260149 930126 NYNEX TO BEGIN STOCK BUYBACK NEW YORK NYNEX CORP SAID IT WOULD BEGIN TODAY A SHARE BUYBACK PROGRAM FOR AS LONG AS 10 YEARS AND FOR AS MANY AS EIGHT MILLION SHARES TO BE BOUGHT IN OPENMARKET TRANSACTIONS THE SHARES WILL BE USED FOR EMPLOYEE STOCK OPTION PLANS ADOPTED IN 1992 ALSO ON FEB 1 THE REGIONAL BELL TELECOMMUNICATIONS COMPANY PLANS TO BEGIN A SEPARATE SHARE BUYBACK PROGRAM IN CONNECTION WITH ITS EMPLOYEE SAVINGS PLANS AND THE COMPANY'S DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN IT PLANS TO BUY BACK ABOUT 26 MILLION COMMON SHARES IN 1993 FOR THESE PLANS NYNEX CURRENTLY HAS ABOUT 207 MILLION COMMON SHARES OUTSTANDING 9301260148 930126 JUSTICES LIMIT INVESTORS' TAX ALLOWANCE FOR THE DEPLETION OF ENERGY RESOURCES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT LIMITED A FEDERAL TAX BREAK FOR ENERGY INVESTORS THE UNANIMOUS HIGH COURT RULING WAS A VICTORY FOR THE FEDERAL GOVERNMENT WHICH HAD WARNED THAT A CONTRARY RESULT COULD COST IT MORE THAN 1 BILLION A YEAR IN TAX REVENUE THE RULING WAS A DEFEAT FOR INDIVIDUAL INVESTORS AND ENERGY COMPANIES ELIGIBLE FOR THE TAX BREAK THE INTERNAL REVENUE CODE PERMITS ENERGY INVESTORS TO DEDUCT FROM THEIR TAXABLE INCOME AN ALLOWANCE FOR THE DEPLETION OF RESOURCES SUCH AS OIL GAS AND COAL THE DEPLETION ALLOWANCE IS BASED ON THE TAXPAYER'S REVENUE FROM PRODUCTION OF THE RESOURCE IT CONTINUES AS LONG AS REVENUE IS GENERATEDEVEN IF THE COSTS OF ACQUIRING AND DEVELOPING THE DEPOSIT HAVE BEEN FULLY RECOVERED BY PERMITTING DEDUCTIONS FAR IN EXCESS OF THE ACTUAL INVESTMENT IN ENERGY VENTURES THE DEPLETION ALLOWANCE PROVIDES A SIGNIFICANT TAX BREAK TO INVESTORS CONCERNED ABOUT THE EXTENT OF SUCH ADVANTAGES CONGRESS IN 1969 PASSED A SOCALLED ALTERNATIVE MINIMUM TAX ON CERTAIN TAX PREFERENCES INCLUDING THE DEPLETION ALLOWANCE AT ISSUE IN THE CASE THE SUPREME COURT DECIDED YESTERDAY WAS THE PROPER METHOD OF CALCULATING THE TAX PREFERENCE ASSOCIATED WITH OIL AND GAS DEPLETION SPECIFICALLY WHETHER INVESTORS CAN ADJUST THE PREFERENCE TO REFLECT THE COST OF DRILLING TOOLS PIPES AND OTHER EQUIPMENT AND THEREBY REDUCE THEIR TAXES IN AN OPINION WRITTEN BY JUSTICE DAVID SOUTER THE HIGH COURT SAID THE COST OF SUCH EQUIPMENT COULDN'T BE USED TO LOWER INVESTORS' TAXES IN THIS MANNER THE RULING REVERSED AN EARLIER DECISION BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON IN ITS BRIEF APPEALING THE FEDERAL CIRCUIT'S DECISION THE JUSTICE DEPARTMENT HAD STRESSED THAT THE LOWERCOURT RULING PROMPTED A STEADY STREAM OF NEW REFUND CLAIMS TOTALING HUNDREDS OF MILLIONS OF DOLLARS JUSTICE SOUTER WROTE THAT THE HIGH COURT HAD AGREED TO REVIEW THE FEDERAL CIRCUIT'S RULING BECAUSE OF THE IMPORTANCE OF THE ISSUE TO THE FEDERAL TREASURY THE SUPREME COURT MADE IT EASIER FOR THE INTERNAL REVENUE SERVICE TO CHALLENGE TAX BENEFITS CLAIMED BY SHAREHOLDERS OF CERTAIN TYPES OF SMALL BUSINESSES THE NARROW PROCEDURAL RULING APPLIED ONLY TO TAX DISPUTES INVOLVING SHAREHOLDERS OF BUSINESSES COVERED BY SUBCHAPTER S OF THE TAX CODE DESIGNED TO ENCOURAGE SMALLBUSINESS OWNERS TO INCORPORATE SUBCHAPTER S PERMITS CORPORATE TAX BENEFITS AND LIABILITIES TO BE ATTRIBUTED TO INDIVIDUAL SHAREHOLDERS IN A MANNER AKIN TO THE TAX TREATMENT OF PARTNERSHIPS YESTERDAY'S UNANIMOUS RULING SAID THAT UNDER CERTAIN CIRCUMSTANCES THE IRS CAN REJECT A SHAREHOLDER'S CLAIM OF A TAX BENEFIT EVEN AFTER THE THREEYEAR LIMIT ON CHALLENGING THE TAX RETURN OF THE COMPANY HAS EXPIRED THE HIGH COURT SAID THE FILING OF THE SHAREHOLDER'S INDIVIDUAL RETURN IS THE KEY IRS CHALLENGES ARE ALLOWED IT SAID IF THE TIME LIMIT HASN'T EXPIRED ON CHALLENGES TO THE INDIVIDUAL RETURN BUFFERD VS US THE SUPREME COURT REITERATED A RULE MAKING IT RELATIVELY HARD TO WIN FEDERAL ANTITRUST SUITS ALLEGING ATTEMPTS TO MONOPOLIZE MARKETS THE HIGH COURT UNANIMOUSLY SAID THAT AN ALLEGATION OF ATTEMPTED MONOPOLIZATION MUST FAIL UNLESS THE PARTY SUING CAN SHOW THAT THE DEFENDANT HAD A SPECIFIC INTENT TO EXCLUDE ITS COMPETITORS AND THAT THERE WAS A DANGEROUS PROBABILITY THE EFFORT WOULD SUCCEED PROVING A DANGEROUS PROBABILITY OF SUCCESS GENERALLY REQUIRES A CLEAR DEFINITION OF THE MARKET IN QUESTION AS WELL AS DEMONSTRATING THE DEFENDANT'S ABILITY TO CONTROL PRICES IN THAT MARKET THE JUSTICES SAID THE HIGH COURT REVERSED A RULING BY THE US COURT OF APPEALS FOR THE NINTH CIRCUIT IN SAN FRANCISCO WHICH HAD ENFORCED A MORE FLEXIBLE STANDARD FOR PROVING ATTEMPTED MONOPOLIZATION THE NINTH CIRCUIT SAID THAT EVIDENCE OF UNFAIR OR PREDATORY CONDUCT BY A DEFENDANT IS ENOUGH FOR A JURY TO INFER BOTH SPECIFIC INTENT AND DANGEROUS PROBABILITY OF SUCCESS IN AN OPINION WRITTEN BY JUSTICE BYRON WHITE THE HIGH COURT SAID THE NINTH CIRCUIT HAD IMPROPERLY DEPARTED FROM LONGESTABLISHED INTERPRETATIONS OF FEDERAL ANTITRUST LAW 9301260147 930126 INTERNATIONAL DEGUSSA MAINTAINS SAME PAYOUT FRANKFURT DEGUSSA AG SAID IT WILL KEEP ITS PERSHARE DIVIDEND FOR THE FISCAL YEAR ENDED SEPT 30 UNCHANGED AT SEVEN MARKS 440 THE GERMAN CHEMICALS METALS AND TRADING GROUP ALSO SAID IT PLANNED TO SEEK AUTHORIZATION FROM ITS SHAREHOLDERS TO ISSUE UP TO 16 MILLION NEW SHARES AT SOME UNSPECIFIED TIME IN THE FUTURE SHAREHOLDERS WILL VOTE TO APPROVE THE ISSUE OF NEW SHARES AT THE MARCH 12 SHAREHOLDERS MEETING DEGUSSA IS ONE OF THE 30 SHARES IN THE DAX GERMAN STOCK INDEX 9301260146 930126 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK PAUL S KLICK III 48 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF EQ SERVICES INC AN ATLANTA MORTGAGE LOAN SERVICING UNIT OF THIS INSURANCE AND FINANCIAL SERVICES COMPANY DOUGLAS A TURNBULL 55 WHO HEADED THE UNIT FROM ITS INCEPTION IN EARLY 1992 RETIRED DEC 31 THE POSTS OF PRESIDENT AND CHIEF EXECUTIVE ARE NEWLY CREATED 9301260145 930126 BETHLEHEM STEEL TO BOOST PRICES BETHLEHEM PA BETHLEHEM STEEL CORP JOINING RIVALS USX CORP AND LTV CORP SAID IT WILL RAISE PRICES FOR HOTROLLED AND COLDROLLED STEEL EFFECTIVE APRIL 4 THE INCREASE BY BETHLEHEM THE NATION'S SECONDLARGEST STEEL PRODUCER GIVES MORE STRENGTH TO THE PRICE INCREASE WHICH WAS DECLARED LAST WEEK BY LTV THE THIRDLARGEST PRODUCER AND FOLLOWED BY USX'S US STEEL THE INDUSTRY LEADER THE 20 A TON INCREASE EQUIVALENT TO 4 TO 5 WON'T BE APPLIED TO COATED STEEL SHEET THOUGH BETHLEHEM SAID IT WOULD ENFORCE PREVIOUSLY ANNOUNCED PRICE INCREASES ON COATED PRODUCTS IN THE SECOND QUARTER THE INCREASE ALSO DOESN'T INCLUDE STEEL PLATE 9301260144 930126 FAMILYLEAVE BILL MOVES SWIFTLY AHEAD WITH STRONG ADMINISTRATION SUPPORT BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A BILL THAT WOULD REQUIRE LARGER COMPANIES TO GIVE WORKERS UNPAID LEAVE FOR A FAMILY OR MEDICAL EMERGENCY IS HURTLING TOWARD COMPLETION IN CONGRESS BACKED BY STRONG SUPPORT FROM THE CLINTON ADMINISTRATION AT THE SAME TIME THE BILL WHICH WAS DEFEATED LAST YEAR BY THE BUSH ADMINISTRATION IS NOW BEING SEEN BY SOME MORE LIBERAL MEMBERS AS A STARTING POINT FOR BROADER MANDATEDLEAVE POLICIES THE BILL WOULD REQUIRE ANY COMPANY WITH 50 OR MORE EMPLOYEES WHICH CONSTITUTES 5 OF US COMPANIES TO OFFER WORKERS UP TO 12 WEEKS OF UNPAID LEAVE AFTER CHILDBIRTH OR ADOPTION OR FOR THE SERIOUS ILLNESS OF AN EMPLOYEE OR A FAMILY MEMBER EMPLOYERS WOULD HAVE TO CONTINUE HEALTH CARE COVERAGE AND GUARANTEE EMPLOYEES THEIR JOB BACK OR A COMPARABLE POSITION EMPLOYERS CAN EXEMPT THEIR HIGHESTPAID 10 AS WELL AS EMPLOYEES WHO WORK 25 HOURS OR LESS ON FRIDAY LABOR SECRETARY ROBERT REICH URGED CONGRESS TO PUSH THROUGH THE MEASURE AS A TURNING POINT IN THE HISTORY OF AMERICAN WORK FORCE POLICY HE ADDED THAT IT WILL SERVE AS THE EMPHATIC OPENING STATEMENT OF THE CLINTON ADMINISTRATION'S WORK FORCE AGENDA PRESIDENT CLINTON IS WAITING AND THE AMERICAN WORK FORCE IS WAITING THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE IS EXPECTED TO VOTE FOR THE MEASURE TODAY AND AN IDENTICAL BILL IS LIKELY TO PASS THE HOUSE EDUCATION AND LABOR COMMITTEE TOMORROW THE BILLS SHOULD REACH THE FLOORS OF BOTH CHAMBERS EARLY NEXT MONTH MAKING THEM AMONG THE FIRST LEGISLATION APPROVED BY THE NEW CONGRESS PRESIDENT CLINTON HAS VOWED HIS SUPPORT PASSAGE OF THE BILLS WOULD END A SEVENYEAR STRUGGLE ON CAPITOL HILL TO ADOPT A FAMILYLEAVE POLICY LAST YEAR BOTH HOUSES APPROVED BILLS THAT HAD BEEN SOFTENED TO GAIN REPUBLICAN SUPPORT BUT THE LEGISLATION WAS VETOED BY PRESIDENT BUSH THE SENATE OVERRODE THE VETO BUT HOUSE BACKERS WERE UNABLE TO MUSTER ENOUGH VOTES FOR AN OVERRIDE INDEED THE SUDDEN REALIZATION THAT THE BILL IS ONLY WEEKS FROM BECOMING LAW IS CAUSING MILD PANIC IN THE BUSINESS COMMUNITY AND AMONG REPUBLICANS THE REALITY HAS JUST SET IN OVER HERE SAID ONE REPUBLICAN STAFFER NOW THERE ARE CONCERNS THAT THE BILL IS REALLY GOING TO BE A DRAG ON EMPLOYMENT AND THE LABOR MARKET SO REPUBLICANS WILL LIKELY TAKE TO THE FLOOR TO ARGUE THAT THE BILL IS COUNTERPRODUCTIVE TO THE CLINTON ADMINISTRATION'S PLANS FOR JOB GROWTH SEN NANCY KASSEBAUM R KAN MAY PROPOSE A PLAN TO HAVE THE FEDERAL GOVERNMENT PICK UP BUSINESSES' COSTS OF PAYING FOR HEALTH CARE WHILE WORKERS ARE ON LEAVE SEN LARRY CRAIG R IDAHO IS SAID TO BE WEIGHING A PLAN TO GIVE COMPANIES TAX CREDITS FOR OFFERING FAMILY LEAVE INSTEAD OF MANDATING THAT LEAVE BUT DEMOCRATS AND REPUBLICANS AGREE THAT THE BILL IS VIRTUALLY CERTAIN TO FLY THROUGH IN ITS CURRENT FORM SEN CHRISTOPHER BOND R MO LAST YEAR FORGED A COMPROMISE TO ADD PROTECTIONS FOR BUSINESS THAT WOULD ALLOW COMPANIES TO REQUIRE A SECOND MEDICAL OPINION AND WOULD LET COMPANIES FORCE EMPLOYEES TO USE AVAILABLE VACATION TIME RATHER THAN UNPAID LEAVE IN ADDITION SENATE NEGOTIATORS APPEAR TO HAVE RESOLVED A FINAL DISPUTE OVER WHETHER DOCKING THE PAY OF SOME SALARIED EMPLOYEES UNDER SOME CIRCUMSTANCES WOULD TURN THEM INTO HOURLY WAGE EARNERS CREATING LEGAL AND ACCOUNTING HEADACHES FOR CORPORATIONS UNDER THE COMPROMISE WHICH STILL HAS BUSINESS GROUPS ANGRY THOSE WORKERS WOULD REMAIN SALARIED EMPLOYEES EVEN IF THEY TOOK UNPAID LEAVE THE NEXT QUESTION IS SURE TO REVOLVE AROUND WHETHER THE BILL WILL BE A FIRST STEP TOWARD BROADER MANDATES FOR COMPANIES' SOCIAL RESPONSIBILITIES WHILE NO ONE EXPECTS CONGRESS TO REVISIT THE ISSUE IN THE NEXT YEAR OR SO SEVERAL DEMOCRATIC LABOR COMMITTEE MEMBERS SEE A FAMILYLEAVE LAW AS MERELY A STARTING POINT THAT COULD EXPAND TO SMALLER COMPANIES OR FORCE ADDITIONAL COMPANY BENEFITS THAT VIEW GOT SOMETHING OF A NOD FROM MR REICH FRIDAY WHEN HE EMPHASIZED THAT THE PENDING LEGISLATION SET ONLY BASIC MINIMAL STANDARDS WHILE HE SAID HE WOULD LIKE TO WAIT SEVERAL YEARS TO SEE HOW THEY WORK HE ADDED THAT THE CURRENT BILL IS A VERY VERY MODEST MINIMAL STEP 9301260143 930126 NATION'S STEEL OUTPUT CLIMBED 03 IN WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 03 LAST WEEK TO 1772000 TONS FROM 1766000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 31 FROM THE 1718000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 804 OF ITS CAPABILITY LAST WEEK UP FROM 802 THE PREVIOUS WEEK AND 781 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9301260142 930126 WHO'S NEWS MICROAGE INC MICROAGE INC TEMPE ARIZ WILLIAM C KEIPER 42 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER HE RESIGNED TO PURSUE OTHER INTERESTS A COMPANY SPOKESWOMAN SAID MR KEIPER COULDN'T BE REACHED TO COMMENT JEFFREY D MCKEEVER 50 CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS ASSUMED MR KEIPER'S DUTIES MICROAGE PROVIDES INFORMATION TECHNOLOGY PRODUCTS AND SERVICES THROUGH FRANCHISED STORES 9301260141 930126 WHO'S NEWS SMART & FINAL INC SMART & FINAL INC SANTA BARBARA CALIF ROGER M LAVERTY III PRESIDENT AND CHIEF OPERATING OFFICER OF SMART & FINAL'S LARGEST UNIT WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY MR LAVERTY 45 YEARS OLD SUCCEEDS ROBERT J EMMONS AS PRESIDENT DR EMMONS TRAINED AS AN ECONOMIST CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE WAREHOUSE GROCERY CHAIN THE CHIEF OPERATING POST IS NEW I'LL BE 59 YEARS OLD THIS YEAR AND THIS IS THE FIRST STEP IN THE PROCESS OF SETTING UP A MANAGEMENT SUCCESSION PLAN DR EMMONS SAID THE TWO MEN HAVE WORKED CLOSELY TOGETHER SINCE DR EMMONS BECAME CHIEF EXECUTIVE OFFICER IN 1984 9301260140 930126 WHO'S NEWS BRAMBLES EXECUTIVE IS APPOINTED TO POST OF QANTAS CHAIRMAN SPECIAL TO THE WALL STREET JOURNAL CANBERRA AUSTRALIA GARY PEMBERTON WILL BECOME CHAIRMAN OF QANTAS AIRWAYS LTD WHEN THE 665 MILLION AUSTRALIAN DOLLAR US4471 MILLION SALE OF 25 OF THE AIRLINE TO BRITISH AIRWAYS PLC IS COMPLETE THE AUSTRALIAN GOVERNMENT SAID MR PEMBERTON IS CHAIRMAN OF BRAMBLES INDUSTRIES LTD AN AUSTRALIAN TRANSPORTATION AND WASTEMANAGEMENT COMPANY HE IS ALSO MANAGING DIRECTOR OF BRAMBLES BUT WILL RETIRE FROM THAT POST IN MARCH THE SALE OF THE STAKE TO BRITISH AIRWAYS IS DUE TO BE COMPLETED MARCH 1 MR PEMBERTON WILL SUCCEED BILL DIX WHO WILL CONTINUE TO ACT AS A CONSULTANT TO QANTAS AND TO ADVISE THE AIRLINE ON ITS INITIAL PUBLIC OFFERING OF SHARES EXPECTED LATER THIS YEAR FROM 1987 TO 1990 MR PEMBERTON WAS A DIRECTOR OF AUSTRALIAN AIRLINES LTD THE DOMESTIC AIRLINE THAT HAS SINCE BEEN MERGED INTO QANTAS BOB COLLINS MINISTER FOR TRANSPORT AND COMMUNICATIONS SAID MR PEMBERTON HAS BEEN APPOINTED TO THE QANTAS BOARD FOR FIVE YEARS THE APPOINTMENT OF A SENIOR TRANSPORT EXECUTIVE WITH MR PEMBERTON'S EXPERIENCE WILL HELP THE AIRLINE MEET THE CHALLENGES OF THE COMPETITIVE INTERNATIONAL AVIATION ENVIRONMENT MR COLLINS SAID 9301260139 930126 GERMANY TO OPEN AGENCY FOR SECURITIES EXCHANGE SPECIAL TO THE WALL STREET JOURNAL FRANKFURT GERMANY PAVED THE WAY FOR A SECURITIESEXCHANGE SUPERVISORY COMMISSION AS STATE AND FEDERAL FINANCE OFFICIALS PATCHED UP SOME OLD DISAGREEMENTS BUT THE LONGAWAITED SECURITIESEXCHANGE WATCHDOG COMMISSION WON'T BEGIN OPERATIONS UNTIL SOMETIME IN 1994 A SENIOR OFFICIAL IN THE BONN FINANCE MINISTRY PREDICTED FOR NEARLY TWO YEARS GERMANY HAS BEEN THE SUBJECT OF SHARP INTERNATIONAL CRITICISM BECAUSE ITS SECURITIES REGULATIONS ARE CONSIDERED LAX AND BECAUSE THE NATION WITH ITS CLUBBY SECURITIES TRADING COMMUNITY DOESN'T REGARD INSIDER TRADING AS A CRIMINAL OFFENSE HORST KOEHLER STATE SECRETARY IN THE FINANCE MINISTRY CALLED AN AGREEMENT REACHED YESTERDAY A BREAKTHROUGH UNDER THE AGREEMENT THE AGENCY WILL BE A FULLY INDEPENDENT AGENCY OF THE FEDERAL GOVERNMENT HE SAID CONCRETE PARTICULARS FOR BOTH THE STRUCTURE OF THE NEW AGENCY AND THE LAWS IT WILL ENFORCE STILL NEED TO BE WORKED OUT OFFICIALS SAID 9301260138 930126 F&M TO BUY A BANKING FIRM WINCHESTER VA F&M NATIONAL CORP SAID IT AGREED TO ACQUIRE FIRST NATIONAL BANKSHARES INC EMPORIA VA THROUGH A TAXFREE SWAP OF SHARES TERMS WEREN'T DISCLOSED AT THE END OF LAST YEAR F&M HAD TOTAL ASSETS OF 109 BILLION WITH 53 BANKING OFFICES FIRST NATIONAL BANKSHARES HAD ASSETS OF 661 MILLION WITH A MAIN OFFICE AND TWO BRANCHES IN EMPORIA 9301260137 930126 MUSCLING IN BIG PLAYERS INVADE THE BOOMING MARKET FOR SMALLER STOCKS PENSION AND MUTUAL FUNDS STORM INTO VOLATILE ARENA OF MANY SMALL INVESTORS INDEX CLIMBS 22 IN 3 MONTHS BY DOUGLAS R SEASE AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE ELEPHANTS ARE CRASHING THE SMALLSTOCK PARTY SMALL STOCKS THOSE WITH TOTAL STOCKMARKET CAPITALIZATION OF 2 BILLION OR LESS HAVE LONG BEEN THE PLAYGROUND OF THE KIND OF INDIVIDUAL INVESTOR WHO LOVES TO GAMBLE ON THE LITTLE COMPANY THAT MIGHT BE HEADED FOR THE BIG TIME SINCE LATE 1990 GROWING INTEREST AMONG SUCH INVESTORS HAS STEADILY PUSHED UP PRICES OF THESE SMALLER STOCKS NOW THE NATION'S BIG PENSION AND MUTUAL FUNDS MANY OF WHOM TRADITIONALLY HAVE TENDED TOWARD LARGER LESS VOLATILE STOCKS HAVE CAUGHT THE SCENT OF PROFITS IN SMALL STOCKS AND THEY ARE MUSCLING THEIR WAY INTO THE OVERTHECOUNTER MARKET WHERE MOST SMALL STOCKS TRADE THE BILLIONS OF DOLLARS THESE BIG INSTITUTIONS ARE PLOWING INTO SMALL STOCKS HAS POWERED THE NASDAQ COMPOSITE INDEX THE BENCHMARK OF OVERTHECOUNTER STOCKS 22 HIGHER SINCE THE CURRENT SMALLSTOCK RALLY TOOK OFF LAST OCTOBER AS THE RALLY CONTINUED UNABATED YESTERDAY THE NASDAQ COMPOSITE INDEX CLIMBED ANOTHER 532 POINTS TO A RECORD 70695 MEANWHILE THE DOW JONES INDUSTRIAL AVERAGE HAS BARELY BUDGED SINCE OCTOBER AND REMAINS WELL BELOW ITS 1992 RECORD OF 341321 THE FACT THAT THE DOW IS GOING SIDEWAYS WHILE THE NASDAQ IS HITTING NEW HIGHS TELLS ME THE BIG INSTITUTIONAL INVESTORS ARE SCRAMBLING TO OWN SMALL AND MEDIUMSIZED STOCKS SAYS JOSEPH MCALINDEN A STOCKMARKET STRATEGIST AT DILLON READ & CO IN NEW YORK ACTUALLY SCRAMBLING MIGHT NOT BE QUITE THE RIGHT WORD OBSERVES ROLAND MACHOLD DIRECTOR OF THE DIVISION OF INVESTMENT FOR NEW JERSEY'S 34 BILLION PUBLICEMPLOYEE PENSION FUND AND AN EARLY SMALLSTOCK ADVOCATE IT'S HARD TO PUT A LOT OF MONEY TO WORK FAST IN SMALL STOCKS HE SAYS WE JUST KEEP BUYING ANOTHER 3 MILLION TO 4 MILLION EVERY WEEK NONETHELESS THE NEW JERSEY FUND HAS BUILT UP A SMALLSTOCK PORTFOLIO OF NEARLY 1 BILLION SINCE MR MACHOLD BEGAN DIRECTING MORE MONEY INTO THE OVERTHECOUNTER MARKET 18 MONTHS AGO THERE ARE OTHER SIGNS THAT BIG INVESTORS ARE PILING INTO SMALL STOCKS PROGRAM TRADING IN WHICH A COMPUTER GUIDES THE SIMULTANEOUS PURCHASE OR SALE OF LARGE NUMBERS OF STOCKS USED TO BE CONFINED TO STOCK EXCHANGES WHERE BIG STOCKS TRADE NOW PROGRAM TRADING IS GROWING IN THE OVERTHECOUNTER MARKET TOO THERE ARE LOTS OF ACCOUNTS DOING PROGRAMS OF 30 MILLION TO 50 MILLION IN SMALL STOCKS SAYS PETER DAPUZZO HEAD OF EQUITY SALES AND TRADING AT THE BROKERAGE FIRM CANTOR FITZGERALD & CO HERE HE OBSERVES THAT SUCH ACTIVITY COMES DESPITE THE FACT THAT SOMETIMES IT TAKES AS MUCH AS 10 DAYS TO FINISH THE ORDER BECAUSE THESE STOCKS DON'T HAVE THAT MUCH TRADING VOLUME INDIVIDUAL INVESTORS ARE ALSO STILL GRABBING FOR SMALL STOCKS BUT MANY RECOGNIZING THEIR LACK OF EXPERTISE ARE LEAVING THE STOCK SELECTION TO MUTUALFUND MANAGERS THE HUGE AMOUNTS OF MONEY AT THE DISPOSAL OF THOSE MANAGERS MAKE THEM ANOTHER POTENT FORCE IN THE MARKET FOR SMALLER STOCKS ALTHOUGH THEY REPRESENT INDIVIDUALS ROBERT SANBORN THE 35YEAROLD MANAGER OF THE CHICAGOBASED OAKMARK FUND WHICH SPECIALIZES IN MEDIUMSIZE AND SMALL STOCKS IS GLORYING IN THE ADULATION OF THOUSANDS OF SHAREHOLDERS WHO HAVE MADE HIS ONE OF THE FASTEST GROWING MUTUAL FUNDS IN AMERICA BEGUN IN 1991 WITH 83 MILLION IN ASSETS THE OAKMARK FUND HAS EXPLODED TO 430 MILLION NOW FUELED BY ITS 96 RETURN OVER THAT PERIOD I THOUGHT IT WOULD TAKE FIVE YEARS TO BUILD UP A REPUTATION MR SANBORN MARVELS AS HE SCANS DOZENS OF APPRECIATIVE LETTERS FROM SHAREHOLDERS BUT WHAT IS HAPPENING IS JUST ASTOUNDING I GUESS IT'S MY LITTLE MOMENT IN THE SUN SMALL STOCKS HAVE GONE IN AND OUT OF FASHION WITH INVESTORS PERIODICALLY THEY ARE CONDEMNED TO SPEND YEARS IN WALL STREET'S DOG HOUSE AFTER A REMARKABLE BULL MARKET IN THE LATE 1970S SMALL ISSUES TOOK AN EQUALLY REMARKABLE TUMBLE IN 1983 AND REMAINED OUT OF FAVOR WITH INSTITUTIONAL INVESTORS FOR THE REST OF THE DECADE MOST BIG MONEY MANAGERS PREFERRED TO PROSPECT AMONG THE STOCKS OF GIANT COMPANIES THAT EITHER WERE CAUGHT UP IN THE MERGERSANDBUYOUT BINGE OR WERE ABLE TO INCREASE EARNINGS QUICKLY BY EXPANDING MARKET SHARE IN RAPIDLY GROWING ECONOMIES AROUND THE WORLD THIS TIME THOUGH THE FLOW OF BIG MONEY TO SMALL STOCKS LOOKS LIKE A LONGTERM AFFAIR THE US IS THE ONLY MAJOR INDUSTRIALIZED COUNTRY SHOWING STEADY ECONOMIC GROWTH AND MERGERS AND BUYOUTS ARE PASSE AT THE SAME TIME A NEW FRUGALITY AMONG CONSUMERS IS PUTTING PRESSURE ON THE PROFIT MARGINS OF THE GIANT FOOD BEVERAGE AND TOBACCO COMPANIES WHOSE STOCKS WERE ONCE SO ALLURING TO PENSION AND MUTUALFUND MANAGERS MANY OF THOSE MANAGERS NOW BELIEVE THAT THE WAY TO FATTER STOCKMARKET PROFITS IS TO BUY THE SHARES OF YOUNG COMPANIES WITH UNIQUE PRODUCTS OR SERVICES THAT WILL GROW EXPLOSIVELY THE US STILL DOMINATES THE WORLD IN INNOVATION AND IN THE CREATION OF NEW COMPANIES SAYS PARAG SAXENA A SMALLSTOCK MANAGER AT CHANCELLOR INVESTMENT MANAGEMENT CO IN NEW YORK THE NATURE OF THOSE COMPANIES IS THAT THEIR REVENUES AND PROFITS CAN GROW RAPIDLY AND THEREFORE STOCK PRICES CAN GROW RAPIDLY TO A CERTAIN EXTENT THE BULL MARKET IN SMALL STOCKS HAS BECOME A SELFFULFILLING PROPHECY THE RISE IN SMALLSTOCK PRICES IN 1991 AND AGAIN IN LATE 1992 HAS ALREADY PERSUADED BIG INVESTORS THAT THEY NEED TO BE PLAYERS IN THE OVERTHECOUNTER MARKET TOO PUSHING PRICES STILL HIGHER IN THE HIGHLY COMPETITIVE WORLD OF MONEY MANAGEMENT EVEN THE MOST RELUCTANT INVESTOR CAN'T LONG IGNORE THE GAINS BEING MADE IN SMALL STOCKS WE'VE ALWAYS RECOMMENDED THAT PENSION FUNDS KEEP 10 OR 15 OF THEIR ASSETS IN SMALL STOCKS SAYS NARAYAN RAMACHANDRAN DIRECTOR OF RESEARCH OF ROGERS CASEY & ASSOCIATES A PENSIONFUND CONSULTING FIRM NOW I THINK THEY'RE PAYING ATTENTION TO US IF THE RECOVERY LOOKS LIKE IT WILL BE SUSTAINED YOU'RE LIKELY TO SEE PENSION FUNDS COMMIT MORE THAN JUST A TOKEN PERCENTAGE TO SMALL STOCKS DEVELOPMENTS IN THE ECONOMY AND POLITICS MAY AUGUR WELL FOR SMALL STOCKS TOO AN ECONOMIC RECOVERY ACCOMPANIED BY LOW INFLATION IS THE IDEAL CLIMATE FOR NURTURING SMALL COMPANIES AFFORDING THEM A STABLE ENVIRONMENT FOR GROWTH AND IT DOESN'T HURT THEIR PROSPECTS THAT THE NEW PRESIDENT PROFESSES TO BE INTENT ON HELPING SMALL BUSINESSES GROW ON TOP OF ALL THE OTHER NATURAL ADVANTAGES THAT SMALL COMPANIES HAVE OVER LARGE ONES NOW THEY'VE GOT A PRESIDENT THAT SAYS IF YOU'RE GROWING AND CREATING JOBS WE'LL HELP YOU WITH TAX BREAKS SAYS PETER CANELO CHIEF MARKET STRATEGIST AT COUNTY NATWEST TO MANY THE RAPIDLY RISING INTEREST IN SMALL STOCKS IS LONG OVERDUE CERTAINLY THE MANAGEMENTS OF SMALL COMPANIES DESPERATELY IN NEED OF MONEY TO GROW WELCOME THE ATTENTION THEY ARE RUSHING NEW STOCK OFFERINGS TO MARKET AT A RECORD PACE IN A FRANTIC EFFORT TO TAP THE COFFERS OF BIG INVESTORS MONEY MANAGERS WHO SPECIALIZE IN SMALL STOCKS ARE CHEERING TOO AFTER STRUGGLING TO SURVIVE DURING THE YEARS THAT SMALL ISSUES WERE OUT OF FAVOR ON WALL STREET THEY ARE NOW BEING COURTED BY CLIENTS WITH MILLIONS OF DOLLARS TO INVEST WE HAD NO IDEA IT WOULD BE SO ROUGH FOR A FEW YEARS SAYS WILLIAM DUTTON MANAGER OF THE CHICAGOBASED SKYLINE SPECIAL EQUITIES FUND IT WAS PRETTY TOUGH DOING THIS WHEN NOBODY WANTED SMALL STOCKS THEN ALL OF A SUDDEN IT JUST EXPLODED THE SKYLINE FUND STARTED IN 1987 WITH JUST 7 MILLION UNDER MANAGEMENT SOARED TO 180 MILLION LAST MONTH FROM 37 MILLION IN 1991 BUT THE MARKET FOR SMALL STOCKS CAN BE A DANGEROUS PLACE FOR THE UNWARY RELIABLE INFORMATION ABOUT MANY SMALLER COMPANIES CAN BE HARD TO FIND SHARES OF THOSE COMPANIES DON'T ALWAYS TRADE EASILY AND BIG PRICE MOVES EITHER UP OR DOWN CAN OCCUR WITH STARTLING RAPIDITY MOREOVER EVEN THOUGH THE CONSENSUS ON WALL STREET IS THAT SMALL STOCKS ARE IN FOR A SUSTAINED BULL MARKET MANY ANALYSTS CONTEND THAT PRICES HAVE RISEN TOO FAR TOO FAST IT WON'T BE LONG THEY SAY UNTIL THE OVERTHECOUNTER MARKET SUFFERS A TEMPORARY BUT NERVERACKING SETBACK MR MCALINDEN OF DILLON READ SAYS HE IS CONVINCED THAT THE BULL MARKET IS A MULTIYEAR PHENOMENON BUT THE PATH UP ISN'T GOING TO BE A STRAIGHT ONE THIS PROCESS FEEDS ON ITSELF AND THAT'S WHY EVERY SO OFTEN IT TENDS TO SELFDESTRUCT FOR A WHILE THAT'S JUST FINE WITH ROBERT BACARELLA THE 43YEAROLD MANAGER OF THE MONETTA FUND IN WHEATON ILL HE WILL USE ANY DECLINE IN PRICES TO INVEST SOME OF THE CASH THAT INDIVIDUALS AND PENSIONPLAN SPONSORS ARE POURING INTO HIS SMALLSTOCK FUND A PHENOMENAL BUYING OPPORTUNITY IS COMING UP HERE SOON HE PROCLAIMS I DON'T KNOW EXACTLY WHEN BUT I'LL BE READY MR BACARELLA DOESN'T CONSIDER HIMSELF A BIG RISKTAKER SINCE THE MONETTA FUND WAS FOUNDED IN 1986 ITS NET ASSET VALUE HAS INCREASED EVERY YEAR I DON'T GO FOR HOME RUNS HE EXPLAINS I JUST KEEP LOOKING FOR BASE HITS YET EVEN CAUTIOUS PLAYERS CAN BE WRENCHED AROUND VIOLENTLY IN THE VOLATILE MARKET FOR SMALL STOCKS AFTER PRODUCING A TOTAL RETURN PRICE CHANGES PLUS DIVIDENDS OF 559 IN 1991 MONETTA FUND LAST YEAR POSTED AN ANEMIC GAIN OF JUST 55 BUT THAT HASN'T KEPT EAGER INDIVIDUAL INVESTORS FROM SENDING MORE MONEY THE FUND'S TOTAL ASSETS UNDER MANAGEMENT HAVE SURGED TO 442 MILLION FROM 56 MILLION IN 1991 TO COPE WITH THE HUGE INFLUX OF CASH MR BACARELLA HAS HIRED THREE MORE MONEY MANAGERS DOUBLING HIS STOCKPICKING FORCE TO SIX ADDED A SECOND TRADER TO HANDLE THE INCREASED NUMBER OF BUY AND SELL ORDERS HE IS PLACING AND NEARLY DOUBLED HIS OFFICE SPACE TO 6000 SQUARE FEET IN THE LAST SIX MONTHS FOUR PEOPLE FIELD THE 2000 TELEPHONE CALLS HE GETS DAILY THE FRANTIC PACE IS HELL MR BACARELLA CONCEDES BUT IT'S GOING TO MAKE US A POWERHOUSE YET NOT EVERYBODY IS HAPPY WITH THE GROWING INTRUSION OF BIG MONEY INTO THE MARKET FOR SMALL STOCKS MICHAEL STOLPER AN INVESTMENT CONSULTANT WHO EVALUATES MONEY MANAGERS FOR WEALTHY INDIVIDUALS NOTES THAT THE MARKET FOR SMALL STOCKS IS ALREADY VOLATILE ENOUGH WITHOUT HUGE AMOUNTS OF INSTITUTIONAL MONEY SLOSHING FROM ONE LITTLE STOCK TO ANOTHER ANYTIME YOU SIGN UP FOR SMALL STOCKS YOU'RE GOING FOR A ROLLERCOASTER RIDE HE SAYS BUT INSTITUTIONS HAVE A WAY OF MAGNIFYING THE PRICE SWINGS THEY ACT QUICKLY AND THERE'S A LOT OF DOUGH BEHIND THEIR DECISIONS IF YOU'RE ON THE WRONG SIDE YOU CAN WAKE UP ONE MORNING AND 30 OF YOUR MONEY HAS GONE UP IN SMOKE AND IN THE WORLD OF SMALL STOCKS A BIG INVESTOR DOESN'T HAVE TO BE VERY BIG TO CAUSE DISRUPTIONS A FEW MONTHS AGO A WEALTHY INDIVIDUAL SENT AN UNSOLICITED CHECK FOR 25 MILLION TO THE KAUFMAN FUND A 300 MILLION SMALLSTOCK MUTUAL FUND FOR INDIVIDUAL INVESTORS IN WHICH THE AVERAGE ACCOUNT IS 10000 HANS UTSCH ONE OF THE FUND'S TWO MANAGERS CALLED THE INVESTOR AND THEN SENT THE CHECK BACK THE SAME DAY THE GUY HAD ALREADY TRADED IN AND OUT OF FOUR FUNDS LAST YEAR BEFORE COMING TO US HE SAYS WHAT AM I SUPPOSED TO DO WHEN HE GETS UPSET AND WANTS TO REDEEM 25 MILLION IN ONE DAY THAT WAS 15 OF OUR TOTAL ASSETS AT THE TIME WE DON'T NEED THOSE KINDS OF HEADACHES STILL SOME MONEY MANAGERS ARE TURNING SUCH POTENTIAL HEADACHES INTO OPPORTUNITIES MR DUTTON THE MANAGER OF THE SKYLINE SPECIAL EQUITIES FUND CLOSED HIS FUND TO NEW INVESTORS DEC 11 NOW HIS FIRM IS PLANNING TO START A NEW FUND CALLED SKYLINE SPECIAL EQUITIES II THAT WILL FOCUS ON THE MORE LIQUID MARKET FOR SOMEWHAT LARGER COMPANIES' STOCKS THAT WAY IT WILL BE MUCH EASIER TO INVEST NEW MONEY OTHERS TOO ARE PLANNING TO GET INTO THE MARKET FOR SOCALLED MID CAP STOCKS MR BACARELLA SAYS HE PLANS TO CLOSE HIS MONETTA FUND WHEN IT REACHES 500 MILLION IN ASSETS AN EVENT LIKELY TO OCCUR WITHIN THE NEXT MONTH OR SO AFTER THAT INVESTORS LOOKING TO TAP HIS EXPERTISE WILL BE STEERED TO A PLANNED MIDCAP FUND HE INTENDS TO OPEN LATE NEXT MONTH THAT WILL INVEST IN COMPANIES WITH MARKET VALUES OF BETWEEN 500 MILLION AND 3 BILLION MONEY MANAGERS FIGURE THE LARGER SIZE OF MIDCAP COMPANIES COUPLED WITH THE GREATER TRADING VOLUME AND THE RELATIVE ABUNDANCE OF INFORMATION ABOUT THEM WILL MAKE THE STOCKS LESS VOLATILE WITHOUT GIVING UP THE POTENTIAL FOR RAPID PRICE GAINS AFTER ALL THEY SAY MIDCAP STOCKS ARE JUST SMALL STOCKS THAT HAVE DONE WHAT THEY SET OUT TO DO IT'S A NATURAL EXTENSION MR BACARELLA SAYS A LOT OF THE COMPANIES WE'VE FOLLOWED LIKE REEBOK AND NOVELL HAVE GROWN UP DIVERSITY DIVERSITY DIVERSITY BUY SEVERAL STOCKS WITHIN AN INDUSTRY AND BUY IN SEVERAL INDUSTRIES KNOW THY COMPANIES CALL COMPANIES' MANAGEMENTS AND OPEN ACCOUNTS WITH REGIONAL BROKERS WHO KNOW THE STOCKS A SECOND OPINION HELPS DOLLARCOST AVERAGE BY INVESTING THE SAME AMOUNT EACH MONTH AN INVESTOR BUYS FEWER SHARES AT HIGH PRICES AND MORE SHARES AT LOWER PRICES CUT YOUR LOSSES SET STOPLOSS ORDERS BUT BE SURE TO TAKE INTO ACCOUNT THE GREATER DAYTODAY VOLATILITY OF SMALL STOCKS USE A GOOD BENCHMARK MEASURE YOUR PORTFOLIO'S PERFORMANCE AGAINST A TRUE SMALLSTOCK INDEX SUCH AS RUSSELL 2000 NOT JUST THE NASDAQ COMPOSITE AVOID FAD STOCKS IF EVERYBODY'S TALKING ABOUT A HOT STOCK YOUR'RE TOO LATE AVOID FEEDING FRENZIES MINIMIZE PURCHASES DURING PERIODS OF HIGH TRADING VOLUME AND SHARP RALLIES IN THE NASDAQ MARKET CONSIDER MUTUAL FUNDS PROFESSIONAL INVESTORS HAVE MORE TIME TO DO ALL THE ABOVE AND YOU SLEEP BETTER 9301260136 930126 POLITICS & POLICY CLINTON REITERATES HE'LL END MILITARY'S BAN ON HOMOSEXUALS OPPOSITION GROWS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON INTENDS WITHIN A WEEK TO ANNOUNCE A PLAN TO LIFT THE MILITARY'S BAN ON GAY PERSONNEL A WHITE HOUSE SPOKESWOMAN SAID BUT HE FACES MOUNTING CONGRESSIONAL OPPOSITION AND A VOTE ON THE ISSUE COULD COME AS EARLY AS THIS WEEK I INTEND TO KEEP MY COMMITMENT TO LIFT THE BAN PRESIDENT CLINTON SAID YESTERDAY HE LATER HELD A LENGTHY DISCUSSION OF THE MATTER IN HIS FIRST MEETING WITH THE JOINT CHIEFS OF STAFF BUT DIDN'T CHANGE HIS POSITION BUT THE TWO PEOPLE WHOSE HELP HE MOST NEEDS TO OVERCOME CONGRESSIONAL OPPOSITION JOINT CHIEFS CHAIRMAN GEN COLIN POWELL AND SENATE ARMED SERVICES COMMITTEE CHAIRMAN SAM NUNN D GA DUG IN THEIR HEELS AGAINST THE NEW PRESIDENT FOLLOWING THE ZOE BAIRD MESS THE CLINTON WHITE HOUSE'S HANDLING OF THE GAY ISSUE IS RAISING QUESTIONS ABOUT ITS POLITICAL DEFTNESS THE CLINTON STRATEGY AS LAID OUT IN A RECENT MEMO BY TWO AIDES TO DEFENSE SECRETARY LES ASPIN IS TO RELY HEAVILY ON SEN NUNN THE KEY TO A SUCCESSFUL VOTE IN CONGRESS ON THE ISSUE OF HOMOSEXUALS IN THE MILITARY IS THE ACTIVE LEADERSHIP OF SENATOR NUNN THEY WROTE SO WHAT DOES SEN NUNN THINK IF THERE'S A STRATEGY THERE IT HASN'T BEEN EXPLAINED TO ME HE SAID YESTERDAY I JUST AM NOT PART OF THE STRATEGY INDEED HE TOOK THE OPPORTUNITY AT A NEWS CONFERENCE ABOUT TAX POLICY TO REITERATE HIS SUPPORT FOR MAINTAINING THE BAN ON HOMOSEXUALS MEANWHILE GEN POWELL WAS SAID BY SEVERAL PEOPLE TO FEEL ANGERED AND BETRAYED BY THE PRESIDENT'S HANDLING OF THE MATTER THE GENERAL HAD COME AWAY FROM HIS TWO PREINAUGURATION MEETINGS WITH THE PRESIDENT BELIEVING THAT THE WHITE HOUSE WOULD TRY TO MOVE SLOWLY AND ONLY AFTER LENGTHY CONSULTATIONS WITH THE JOINT CHIEFS BUT IT HAS BECOME CLEAR THE CLINTON ADMINISTRATION PLANNED TO ANNOUNCE QUICKLY THAT IT WOULD LIFT THE BAN WITHIN SIX MONTHS AND THAT DISMISSALS AND OTHER LEGAL ACTIONS AGAINST HOMOSEXUAL MILITARY PERSONNEL WOULD CEASE IMMEDIATELY A DEFENSE DEPARTMENT OFFICIAL SAID THAT SECRETARY ASPIN HAD CONSULTED WITH GEN POWELL MOST NOTABLY BY BRIEFING HIM LAST TUESDAY ON THE PLANNED CHANGES IN THE POLICY ON POLICY ON HOMOSEXUALS SEN DAN COATS R IND SAID HE MIGHT MOVE FOR A SENATE VOTE ON THE ISSUE AS EARLY AS THIS WEEK HE SAID HE EXPECTED TO WIN IF HE DID OFFICES AT THE PENTAGON AND ON CAPITOL HILL REPORTED A FLOOD OF PHONE CALLS MOST OF THEM AGAINST LIFTING THE BAN WE'RE GETTING A TON SAID A RECEPTIONIST IN THE OFFICE OF SEN HOWARD METZENBAUM D OHIO WHO SUPPORTS LIFTING THE BAN GEN POWELL'S OFFICE REPORTED RECEIVING 681 CALLS AGAINST LIFTING THE BAN AND 21 IN FAVOR BY YESTERDAY AFTERNOON IT WILL BE EXTREMELY DIFFICULT TO SUSTAIN ANY LEGISLATION THAT WOULD CHANGE THAT POLICY TODAY TOMORROW OR SIX MONTHS FROM NOW CONCLUDED SENATE MINORITY LEADER BOB DOLE OF KANSAS OTHERS ON CAPITOL HILL SAID THEY WERE SURPRISED THAT THE CLINTON WHITE HOUSE HAD FORGOTTEN ITS VOW TO FOCUS ON THE ECONOMY AT THE OUTSET AND PERMITTED DEFENSE SECRETARY ASPIN TO APPEAR ON A SUNDAY TALK SHOW CBSTV'S FACE THE NATION ONE NAVY OFFICER NOTED THAT UNTIL MR ASPIN DISCUSSED THE ISSUE ON NATIONAL TELEVISION MANY PEOPLE WERE UNAWARE THAT CONGRESS WHICH OVERSEES THE UNIFORM CODE OF MILITARY JUSTICE COULD STOP THE PRESIDENT FROM LIFTING THE BAN REP BARNEY FRANK D MASS SAID THAT A SIXMONTH DELAY IN LIFTING THE BAN WOULD BE GOOD BECAUSE IT WOULD ALLOW EMOTIONS TO COOL AND INFORMATION TO BECOME AVAILABLE ABOUT HOW THE NEW POLICY WOULD BE IMPLEMENTED I THINK A LOT OF THE OPPOSITION IS BASED ON UNREALISTIC FEARS HE SAID DAVID MIXNER WHO DURING THE CAMPAIGN ADVISED PRESIDENT CLINTON ON GAY AND LESBIAN ISSUES SAID HE BELIEVES THE ADMINISTRATION IS SOMEWHAT SURPRISED BY THE INTENSITY OF OPPOSITION TO THE NEW POLICY BUT HE CAST THE MATTER AS AN AFFRONT TO PRESIDENTIAL AUTHORITY WHO WOULDN'T BE TAKEN ABACK BY SUCH A DIRECT CHALLENGE TO THE COMMANDERINCHIEF BY THE CHAIRMAN OF THE JOINT CHIEFS HE ASKED THERE WAS ALSO TALK ON CAPITOL HILL OF DEVISING A COMPROMISE THAT WOULD ONLY PARTIALLY LIFT THE BAN PERHAPS BY STOPPING THE PRACTICE OF ASKING RECRUITS ABOUT THEIR SEXUAL ORIENTATION WHILE LEAVING OTHER ASPECTS OF IT IN PLACE GREGORY KING A SPOKESMAN FOR THE HUMAN RIGHTS CAMPAIGN FUND THE NATION'S LARGEST GAY AND LESBIAN POLITICAL ORGANIZATION SAID HIS GROUP COULD LIVE WITH A COMPROMISE AS LONG AS IT INCLUDED A MORATORIUM ON DISCHARGES FOR HOMOSEXUALITY WE ARE INTERESTED IN WINNING A POLICY CHANGE HE SAID 9301260135 930126 WOMAN SENTENCED FOR ROLE IN ABDUCTING EXXON'S RESO NEW YORK IRENE SEALE 46 YEARS OLD WAS SENTENCED TO 20 YEARS IN PRISON AND FIVE YEARS' PROBATION AND FINED 500000 FOR HER ROLE IN A KIDNAPPING LAST APRIL THAT RESULTED IN AN EXXON CORP EXECUTIVE'S DEATH MRS SEALE GIVEN THE SENTENCE IN FEDERAL COURT IN TRENTON NJ ALSO WAS SENTENCED YESTERDAY IN STATE COURT TO A CONCURRENT 20 YEARS IN PRISON PLUS A 100000 FINE HER HUSBAND ARTHUR A FORMER EXXON SECURITY OFFICIAL WAS SENTENCED EARLIER TO 95 YEARS ON FEDERAL EXTORTION CHARGES AND WAS GIVEN A LIFE SENTENCE ON STATE MURDER CHARGES EXXON INTERNATIONAL PRESIDENT SIDNEY RESO WAS KIDNAPPED BY THE SEALES FROM THE DRIVEWAY OF HIS NEW JERSEY HOME SHOT IN THE ARM BY MR SEALE DURING A SCUFFLE MR RESO WAS HELD CAPTIVE IN A COFFINLIKE BOX IN A STORAGE UNIT WHILE THE SEALES DEMANDED AN 185 MILLION RANSOM FROM EXXON THE 57YEAROLD EXECUTIVE DIED IN THE STORAGE UNIT A FEW DAYS AFTER HIS ABDUCTION ARRESTED LATER BY THE FBI THE SEALES PLEADED GUILTY TO BOTH THE FEDERAL AND STATE CHARGES 9301260134 930126 BUSINESS BRIEF LORAL CORP JAPAN GIVES VOUGHT UNIT 4YEAR 250 MILLION ORDER LORAL CORP'S LORAL VOUGHT SYSTEMS UNIT SAID IN DALLAS THAT JAPAN AGREED TO BUY A MULTIPLELAUNCH ROCKET SYSTEM UNDER A FOURYEAR 250 MILLION CONTRACT THE AGREEMENT VALUED AT 60 MILLION IN THE FIRST YEAR INCLUDES 1300 TACTICAL AND PRACTICE ROCKETS 47 LAUNCHER TRAINER PODS AND 36 LAUNCHERS FOR THE GROUNDTOGROUND DEFENSE SYSTEM MOST OF THE WORK WILL BE PERFORMED AT LORAL VOUGHT SYSTEMS' CAMDEN ARK PLANT IN LATER YEARS OF THE CONTRACT LORAL VOUGHT SAID LAUNCHERS MAY BE DELIVERED IN PARTS FOR ASSEMBLY IN JAPAN NEW YORKBASED LORAL IS PRIMARILY A DEFENSE ELECTRONICS AND SPACE COMMUNICATIONS CONCERN 9301260133 930126 NUMBER OF ACQUISITIONS MERGERS ROSE 39 IN 1992 SCHAUMBURG ILL THE NUMBER OF ANNOUNCED MERGERS AND ACQUISITIONS ROSE 39 IN 1992 THE HIGHEST FIGURE IN SIX YEARS A MERRILL LYNCH & CO SURVEY FOUND BUT THE VALUE OF THE DEALS WAS RELATIVELY LOW WITH NEARLY A QUARTER OF THEM VALUED AT 50 MILLION OR LESS MERRILL LYNCH BUSINESS BROKERAGE & VALUATION A DIVISION OF MERRILL LYNCH SAID THERE WERE 2578 ANNOUNCED DEALS IN 1992 COMPARED WITH 1860 A YEAR EARLIER THE TOTAL VALUE OF DEALS DISCLOSING A PRICE WAS 971 BILLION UP 35 FROM 1991 BUT THE 1992 VALUE WAS THE SECOND LOWEST IN NINE YEARS THE SURVEY SAID THE SURVEY FOUND 636 TRANSACTION DEALS VALUED AT 50 MILLION OR LESS THE AVERAGE TRANSACTION PRICE ANNOUNCED IN 1992 WAS 1017 MILLION THE SAME AS IN 1991 THE SURVEY ALSO SPOTLIGHTED THE TREND OF BIG CORPORATIONS LOOKING FOR NEW FOCUS AND EFFICIENCY BY DIVESTING THEMSELVES OF UNITS TEN OF THE LARGEST TRANSACTIONS ANNOUNCED IN 1992 WERE DIVESTITURES 9301260132 930126 NOISE CANCELLATION TECHNOLOGIES STAMFORD CONN NOISE CANCELLATION TECHNOLOGIES INC SAID IT FORMED A DIVISION TO WORK ON NOISE AND VIBRATION REDUCTION IN THE HEATING AND AIR CONDITIONING EQUIPMENT MARKET THE COMPANY IS A SPECIALIST IN ANTINOISE TECHNOLOGY THAT PRODUCES AN EQUAL BUT OPPOSITE SOUND WAVE TO REDUCE UNWANTED VIBRATION AND NOISE IN AUTOMOTIVE AND OTHER INDUSTRIAL PRODUCTS 9301260131 930126 GENERAL CINEMA TO RENAME UNIT HARCOURT BRACE & CO NEWTON MASS THE JOVANOVICHES CAN TAKE THEMSELVES OUT OF HARCOURT BRACE JOVANOVICH INC BUT THEY'D BETTER EXPECT THE JOVANOVICH NAME TO BE TAKEN OUT OF HARCOURT BRACE AS WELL NINE MONTHS AFTER THE LAST JOVANOVICH LEFT HARCOURT BRACE JOVANOVICH ITS NEW OWNER GENERAL CINEMA CORP SAID IT WOULD CHANGE THE PUBLISHER'S NAME TO HARCOURT BRACE & CO PETER JOVANOVICH 43 YEARS OLD LEFT HIS JOB AS PRESIDENT AND CHIEF EXECUTIVE OF HARCOURT BRACE LAST APRIL TO BECOME PRESIDENT AND CHIEF EXECUTIVE OF MACMILLAN/MCGRAWHILL SCHOOL PUBLISHING CO A TEXTBOOK PUBLISHING JOINT VENTURE OF MACMILLAN LTD AND MCGRAWHILL INC MR JOVANOVICH HAD ARRANGED THE SALE OF DEBTRIDDEN HARCOURT TO GENERAL CINEMA IN NOVEMBER 1991 HE DECLINED TO COMMENT ON THE NAME CHANGE A SPOKESMAN FOR GENERAL CINEMA SAID THE NAME CHANGE DIDN'T REFLECT MR JOVANOVICH'S DEPARTURE IT'S A WHOLE NEW CORPORATE IDENTITY PROGRAM HE SAID JOVANOVICH WAS ADDED TO THE HARCOURT BRACE IMPRINT IN 1970 TO HONOR WILLIAM JOVANOVICH FATHER OF PETER WHO STARTED AT THE COMPANY IN 1947 9301260130 930126 WHO'S NEWS PORSCHE AG NAMES HELMUT SIHLER TO HEAD BOARD OF SUPERVISORS SPECIAL TO THE WALL STREET JOURNAL BONN GERMAN AUTO MAKER PORSCHE AG NAMED SOMEONE FROM OUTSIDE ITS CONTROLLING FAMILIES TO BE CHAIRMAN OF ITS BOARD OF SUPERVISORS HELMUT SIHLER WILL SUCCEED 83YEAROLD FERRY PORSCHE WHO HAS ASKED TO BE RELIEVED OF HIS POST BECAUSE OF AGE MR PORSCHE IS THE SON OF THE COMPANY'S FOUNDER THE PORSCHE AND PIECH FAMILIES WHICH OWN ALL OF PORSCHE AG'S COMMON SHARES AND 40 OF ITS PREFERRED SHARES DOMINATE THE 12MEMBER BOARD OF SUPERVISORS MANY SHAREHOLDERS HAVE BLAMED THE COMPANY'S RECENT FINANCIAL TROUBLES ON THE TIGHT REIN THAT THE FAMILIES KEEP ON THE COMPANY AND ITS MANAGERS THE POST OF CHAIRMAN OF THE SUPERVISORY BOARD IS DISTINCT FROM THE POSITION OF CHAIRMAN OF THE COMPANY REMAINING IN THE CHAIRMAN'S POST IS WENDELIN WIEDEKING WHO WAS APPOINTED LAST FALL AFTER THE SUPERVISORY BOARD HAD A FALLING OUT WITH FORMER CHAIRMAN ARNO BOHN MR BOHN QUIT IN SEPTEMBER MR SIHLER WHO IS EXPECTED TO BE CONFIRMED MARCH 5 BY A SHAREHOLDER VOTE WAS CHOSEN FOR HIS POST IN PART BECAUSE OF HIS EXPERIENCE IN RUNNING FAMILYOWNED BUSINESSES A PORSCHE SPOKESMAN SAID MR SIHLER HAS BEEN CHAIRMAN OF HENKEL KGAA A BIG FAMILYOWNED GERMAN CHEMICALS AND CONSUMER PRODUCTS COMPANY FOR 12 YEARS MR SIHLER ALSO WAS A MEMBER OF THE BOARD OF SUPERVISORS OF ADAM OPEL AG THE GERMAN SUBSIDIARY OF GENERAL MOTORS CORP GIVING HIM A BACKGROUND IN THE AUTOMOBILE INDUSTRY 9301260129 930126 MARKEY TO INTRODUCE BILL TO CUT MUTUAL FUND COSTS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE IS EXPECTED TO REINTRODUCE A BILL TOMORROW THAT COULD CUT COSTS FOR MUTUALFUND INVESTORS REP EDWARD MARKEY D MASS IS EXPECTED TO INTRODUCE A BILL THAT WOULD END THE NEED FOR MONEY MANAGERS TO USE INDEPENDENT NEW YORK STOCK EXCHANGE FLOOR BROKERS TO TRADE STOCKS IN THEIR PORTFOLIOS THE LEGISLATION WOULD REPEAL A 1975 LAW THAT BLOCKS MANAGERS FROM USING THEIR OWN BROKERS ON THE NYSE FLOOR MUTUAL FUNDS AFFILIATED WITH BROKERAGE FIRMS SAY THEY COULD SAVE MILLIONS OF DOLLARS A YEAR IF THEY'RE PERMITTED TO HANDLE THE ORDERS THEMSELVES THE BILL IS NONCONTROVERSIAL AND HAS BEEN ENDORSED BY REP MARKEY AND OFFICIALS AT THE SECURITIES AND EXCHANGE COMMISSION IN PAST YEARS HOWEVER IT HAS FAILED TO GET THROUGH CONGRESS BECAUSE IT HAS ALWAYS BEEN ATTACHED TO OTHER MORE CONTENTIOUS MEASURES REP MARKEY ALSO IS EXPECTED TO INTRODUCE SEVERAL OTHER MEASURES TOMORROW INCLUDING BILLS TO REFORM THE GOVERNMENTSECURITIES MARKETS TOUGHEN REGULATION OF INVESTMENT ADVISERS AND CURB ABUSES INVOLVING LIMITED PARTNERSHIP REORGANIZATIONS KNOWN AS ROLLUPS HE'S ALSO EXPECTED TO INTRODUCE A BILL THAT WOULD REQUIRE AUDITORS TO NOTIFY REGULATORS IF THEY FIND FRAUD IN FINANCIAL STATEMENTS OF COMPANIES THEY AUDIT 9301260128 930126 TECHNOLOGY IN THE LAB LAB SHOOTS FOR LIQUIDCRYSTAL TV SCREEN BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL WEMBLEY ENGLAND WHEN HE'S STUMPED PHYSICIST COLIN YEOH SOMETIMES RESORTS TO SITTING QUIETLY IN HIS LABORATORY FOLDING AND REFOLDING SMALL PIECES OF PAPER INTO INTRICATE SHAPES THE 28YEAROLD INDUSTRIAL SCIENTIST STUDIES A STRANGE SPECIES OF LONG RODSHAPED MOLECULES THAT FIT TOGETHER IN HARDTOPREDICT PATTERNS AND TO HELP VISUALIZE THEM HE TRIES MODELING THEM IN THE JAPANESE PAPERFOLDING ART OF ORIGAMI IT PROVIDES A CHEAP THREEDIMENSIONAL MODEL HE SAYS EVEN IF IT ISN'T HIGHTECH MR YEOH'S JOB AS AN INDUSTRIAL RESEARCHER FOR BRITAIN'S GENERAL ELECTRIC CO OR GEC NO COUSIN TO THE STAMFORD CONN GE IS TO PERFECT A FINNICKY NEW MATERIAL THAT MAY SOON BECOME A BASIC TOOL OF THE WORLD ELECTRONICS INDUSTRY THE TECHNOLOGY IS CALLED FERROELECTRIC LIQUID CRYSTALS A HIGHTECH VARIANT OF THE STANDARD LIQUIDCRYSTALS USED IN TODAY'S PORTABLE COMPUTER SCREENS IT IS THE KEY TO A NEW GENERATION OF SLIM ENERGYSAVING HIGHRESOLUTION SCREENS DISCOVERED IN 1973 THE SUBSTANCE HAS BEEN THE FOCUS OF INDUSTRYWIDE RESEARCH NOW STARTING TO YIELD A FEW RUDIMENTARY PRODUCTS BUT IF MR YEOH AND OTHERS CAN IRON OUT THE REMAINING TECHNICAL BUGS THEY WILL PRODUCE THE DREAM OF COUCH POTATOES EVERYWHERE A FULLSCREEN TV ONLY A FEW INCHES THICK WITH THE SAME HIGHQUALITY PICTURES POSSIBLE TODAY ONLY IN BULKY PICTURE TUBES BUT PORTABLE ENOUGH TO HANG ON THE WALL LIKE A PICTURE OR TAKE ON THE ROAD TAMING THIS TECHNOLOGY FOR COMMERCIAL USE ISN'T THE HEADLINEGRABBING BIGPICTURE STUFF OF SOME SCIENTISTS INSTEAD IT IS A LONG REPETITIVE PROCESS OF TRYING TO COAX A COMPLEX NEW MATERIAL INTO PERFORMING TRICKS IT WOULDN'T ORDINARILY DO IT IS A COLLABORATIVE PROCESS IN GEC'S CASE INVOLVING 11 OTHER EUROPEAN PARTNERS AND ABOVE ALL IT IS A BUSINESS OF IMPERFECT TRADEOFFS SO INTERLOCKED ARE ALL THE COMPLEX PROPERTIES OF THE MATERIALS THAT IMPROVING ONE FEATURE LIKE POWERCONSUMPTION CAN DETRACT FROM ANOTHER FEATURE LIKE PICTURE CONTRAST THE METHOD ISN'T JUST RANDOM TRIALANDERROR IN HOPE A MASTERPIECE WILL EMERGE THIS ISN'T THE MONKEYS TYPING SHAKESPEARE APPROACH TO SCIENCE SAYS MR YEOH'S BOSS MICHAEL CLARK IT'S A CONTROLLED SYSTEMATIC PROCESS BUT IT DOESN'T ALWAYS SEEM THAT WAY AT A WORKBENCH ONE DAY AT GEC'S HIRST RESEARCH CENTRE A 70YEAROLD LAB IN A DECAYING SUBURBAN LONDON INDUSTRIAL PARK MR YEOH SHOWS OFF ONE OF THE COUNTLESS REJECTS HE HAS ENCOUNTERED IN TESTING DIFFERENT FORMULATIONS OF THE MATERIAL THE SUBSTANCE IS SANDWICHED BETWEEN TWO SMALL SHEETS OF GLASS MAKING A MINIATURE COMPUTER SCREEN BUT TO KEEP IT SIMPLE THE ONLY PICTURE THIS SCREEN WILL EVER SHOW IS A FIVEBYSEVEN CHECKERBOARD OF DARK AND LIGHT SQUARES HE CLAMPS WIRES TO THE SCREEN SLIPS THE GLASS UNDER A LARGE MICROSCOPE AND FOCUSES ON ONE LIGHT SQUARE THEN HE TURNS TO AN OSCILLOSCOPE WATCHING AS HE PROGRAMS A RELATED DEVICE TO ADMINISTER A CAREFULLY CALCULATED PATTERN OF ELECTRICAL PULSES TO THE CHECKERBOARD HE HITS A BUTTON THE CHECKERBOARD INSTANTLY REVERSES PATTERN LIGHT SQUARES BECOME DARK AND DARK LIGHT UNDER THE MICROSCOPE THE PATTERN IS CLEAN NO BLOTCHES SO FAR SO GOOD BUT THEN HE CHECKS IT 15 MINUTES LATER NO LUCK THE CHECKERBOARD PATTERN HAS STARTED FADING FORTUNATELY THERE HAVE BEEN GOOD SAMPLES TOO ENOUGH FOR SOME PRODUCTS TO EMERGE THIS YEAR JAPAN'S CANON INC PROMISES THE FIRST COMPUTER TO USE THE TECHNOLOGY A DESKTOP PUBLISHING SYSTEM WITH A 15INCH MONOCHROME DISPLAY REFLECTING THE TECHNICAL DIFFICULTIES THOUGH THE PRODUCT IS AT LEAST A YEAR BEHIND SCHEDULE AND LAST YEAR GEC'S MARCONI DIVISION BEGAN USING THE TECHNOLOGY FOR SMALL ELECTRONIC PRICEDISPLAYS THAT SUPERMARKETS CAN POST ON THEIR SHELVES GEC SAYS THE DEVICES ARE EASIER TO READ AND LESS POWERHUNGRY THAN THE EXISTING ELECTRONIC PRICE LABELS THAT HAVE BEGUN APPEARING IN SOME GROCERY STORES BUT THE HARDNOSED SUPERMARKET CHAINS NOW TRYING IT OUT HAVEN'T YET RENDERED THEIR VERDICTS CUSTOMERS DON'T CARE WHAT TECHNOLOGY IS IN THESE LABELS SAYS MR CLARK WE COULD HAVE LITTLE DEMONS PAINTING ON THE SCREENS FOR ALL THEY CARE TO THE SCIENTISTS LITTLE DEMONS ARE EXACTLY WHAT THESE MOLECULES CAN SOMETIMES SEEM FRESH FROM THE LAB THE SUBSTANCE IS A MILKY WHITE FLUID HENCE THE NAME LIQUID ALL LIQUID CRYSTALS WHETHER FERROELECTRIC OR NOT ARE LONG LUMPY MOLECULES THAT CAN LIVE IN A LIMBO WORLD PARTWAY BETWEEN FREEFLOWING LIQUID AND THE REGULAR ROWS AND COLUMNS OF A CRYSTALLINE SOLID WHAT MAKES THEM USEFUL IS THAT WHEN AN ELECTRIC FIELD BUILDS UP AROUND THEM THEY CHANGE POSITION LIKE HOOFERS IN A RAGGED AMATEUR CHORUS LINE KICKING ONE WAY THEY BEND POLARIZED LIGHT PASSING THROUGH THEM AND LOOK BRIGHT KICKING THE OTHER WAY THEY LOOK DARK TO MAKE COMPUTER SCREENS LIQUID CRYSTALS ARE SANDWICHED BETWEEN TWO SHEETS OF GLASS IMPRINTED WITH METAL CIRCUITRY THAT DELIVERS PULSES OF ELECTRICITY TO DIFFERENT AREAS OR PIXELS ON THE SCREEN THE PIXELS TURN LIGHT OR DARK FORMING PICTURES THAT'S THE BASICS BUT THERE IS A WHOLE TAXONOMY OF LIQUID CRYSTAL SPECIES UNLIKE THE CONVENTIONAL BREEDS FERROELECTRIC LIQUID CRYSTALS ACTUALLY MISNAMED BECAUSE OF AN EARLY SCIENTIFIC MISCONCEPTION ABOUT THE BEHAVIOR OF IRON OR FERROUS COMPOUNDS NATURALLY ALIGN THEMSELVES TO POINT ALL IN THE SAME PREDICTABLE ORDERED PATTERN ONCE SET IN THAT PATTERN BY A BRIEF BLAST FROM AN ELECTRIC FIELD THEY DON'T NEED ANY MORE ELECTRICITY TO STAY IN RANK THE RESULTING IMAGE IS EXCEPTIONALLY SHARP VISIBLE FROM WIDE ANGLES AND ONCE SET NEEDS NO EXTRA ENERGY TO MAINTAIN BUT TOUGH TECHNICAL PROBLEMS REMAIN ONE OF GEC'S IMMEDIATE GOALS IS TO REDUCE THE ENERGY NEEDED TO SWITCH THE SCREENS BETWEEN DARK AND LIGHT ON ONE HAND A HIGH VOLTAGE PRODUCES A CLEAR FASTSWITCHING PICTURE BUT HIGHVOLTAGE MICROELECTRONICS ARE TOO COSTLY FOR MASSPRODUCED PORTABLE COMPUTER SCREENS ON THE OTHER HAND A LOW VOLTAGE LIKE THAT USED IN CONVENTIONAL LAPTOP SCREENS MAKES FOR CHEAP BUT LOWCONTRAST SLOWSWITCHING SCREENS THAT IS FINE FOR SUPERMARKETSHELF LABELS BUT USELESS FOR PORTABLE TV SETS IN THE SEARCH FOR A SOLUTION GEC HAS LOTS OF HELP IT IS LEAD PARTNER IN A 7 MILLION LIQUIDCRYSTAL RESEARCH CONSORTIUM THAT IS 50FUNDED BY THE EUROPEAN COMMUNITY'S ESPRIT RESEARCH PROGRAM ONE MEMBER E MERCK OHG OF GERMANY HAS COME UP WITH OVER 5000 DIFFERENT VARIETIES OF LIQUID CRYSTALS AND ITS CHEMISTS TRY TAILORING THE FERROELECTRIC STRAINS TO GET DIFFERENT EFFECTS IT IS A LONG DIFFICULT PROCESS THAT AS MERCK MATERIALS SCIENTIST ULRICH FINKENZELLER PUTS IT IS PART OF THE ART OF THE MATERIALS RESEARCHER 9301260126 930126 WHO'S NEWS BRINKER NAMES MCDOUGALL TO TOP POSTS AFTER CHAIRMAN CEO SUFFERS INJURIES BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS RESTAURATEUR NORMAN BRINKER REMAINED UNCONSCIOUS BUT IN STABLE CONDITION YESTERDAY FOLLOWING A POLO ACCIDENT THAT PROMPTED BRINKER INTERNATIONAL INC TO NAME A SUCCESSOR TO HIS TWO POSTS LATE SUNDAY THE RESTAURANT COMPANY SAID RON MCDOUGALL THE PRESIDENT AND CHIEF OPERATING OFFICER WOULD ADD MR BRINKER'S TITLES OF CHAIRMAN AND CHIEF EXECUTIVE OFFFICER YESTERDAY THERE WAS LITTLE MARKET REACTION TO THE CHANGE IN COMMAND BRINKER'S STOCK DIPPED JUST 375 CENTS A SHARE TO 46 IN TRADING ON THE NEW YORK STOCK EXCHANGE DESPITE THE REPLACEMENT OF A LEGENDARY RESTAURANT ENTREPRENEUR ANALYSTS SAID THEY EXPECT THAT THE STRONG MANAGEMENT TEAM MR BRINKER BUILT OVER THE YEARS WILL RUN THE COMPANY ABLY WITHOUT HIM THE COMPANY NEVER WAS A ONEMAN SHOW SAID MICHAEL MUELLER AN ANALYST AT MONTGOMERY SECURITIES SAN FRANCISCO MR BRINKER'S STRENGTH HE SAID WASN'T JUST ENTREPRENEURIAL BUT IN BUILDING THE TEAM IN CREATING THE CORPORATE CULTURE MR BRINKER WHOSE HORSE FELL ON HIM AFTER A COLLISION WITH ANOTHER RIDER DURING A POLO MATCH THURSDAY REMAINED IN STABLE CONDITION IN INTENSIVE CARE AT ST MARY'S HOSPITAL IN WEST PALM BEACH FLA HEAVILY SEDATED MR BRINKER WAS STILL UNCONSCIOUS LATE YESTERDAY BUT DR PHILLIP E WILLIAMS JR A DALLAS NEUROSURGEON CONSULTING ON THE CASE SAID HE WAS ENCOURAGED BY THE FACT THAT MR BRINKER HAD PASSED WITHOUT DIFFICULTIES THE 72HOUR AND 96HOUR POINTS AFTER THE ACCIDENT WHEN SWELLING OR INCREASED INTRACRANIAL PRESSURE CAN REACH ITS MAXIMUM DR WILLIAMS SAID MR BRINKER IS IN STRONG HEALTH AND THAT HE HAS BEEN MOVING HIS EXTREMITIES EVEN UNDER SEDATION CONSIDERED AN ENCOURAGING SIGN THOUGH MR BRINKER IS RECEIVING MECHANICAL RESPIRATORY SUPPORT DR WILLIAMS SAID THAT IT IS TOO EARLY TO SAY IF THE INJURY HAS DAMAGED HIS AUTONOMIC FUNCTIONS DR WILLIAMS SAID IT WAS TOO EARLY TO SAY WHEN OR IF MR BRINKER MIGHT REGAIN CONSCIOUSNESS BUT THAT IT COULD BE DAYS OR WEEKS THE BRINKER INTERNATIONAL BOARD MEETING IN DALLAS LATE SUNDAY NAMED MR MCDOUGALL 50 YEARS OLD TO REPLACE MR BRINKER AFTER THE FULL EXTENT OF MR BRINKER'S INJURIES BECAME CLEAR SAID DEBRA SMITHART THE COMPANY'S CHIEF FINANCIAL OFFICER CAROLINE LEVY AN ANALYST AT LEHMAN BROTHERS SAID SHE DIDN'T SEE ANY IMMEDIATE IMPACT ON INVESTORS BECAUSE THE COMPANY'S GROWTH PLANS AND STRATEGIES WERE ARRIVED AT NOT JUST BY MR BRINKER BUT BY HIS MANAGEMENT TEAM INCLUDING MR MCDOUGALL AND OTHERS MR MCDOUGALL SAID THAT AS RECENTLY AS NINE DAYS AGO HE AND OTHER SENIOR OFFICERS MET IN FLORIDA WITH MR BRINKER TO MAP GROWTH PLANS FOR THE COMPANY WHICH HE SAID NOW AVERAGES ONE NEW RESTAURANT OPENING A WEEK THE COMPANY OPERATES SOME 300 CHILI'S RESTAURANTS IN THE US CANADA AND MEXICO AND HAS TWO SMALLER CHAINS AS WELL AS SEVERAL OTHER RESTAURANT CONCEPTS IN VARIOUS STAGES OF DEVELOPMENT THE 61YEAROLD MR BRINKER WHO FOUNDED THE STEAK AND ALE RESTAURANT CHAIN TWO DECADES AGO HEADED RESTAURANT DEVELOPMENT FOR PILLSBURY CO AFTER IT ACQUIRED THE CHAIN IN 1976 BEFORE LEAVING IN 1983 TO RUN CHILI'S MR MCDOUGALL FIRST TEAMED UP WITH MR BRINKER IN 1974 AT STEAK AND ALE STAYING WITH HIM AT PILLSBURY AND THEN AT CHILI'S WHICH BECAME BRINKER INTERNATIONAL TWO YEARS AGO MR MCDOUGALL HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY FOR THE PAST SEVEN YEARS MS SMITHART BRINKER'S CHIEF FINANCIAL OFFICER SAID THAT THE BOARD'S DECISION TO NAME MR MCDOUGALL TO THE ADDITIONAL POSITIONS WAS MEANT TO SEND A SIGNAL THAT THE COMPANY'S LEADERSHIP REMAINS STRONG SHE SAID THAT IF MR BRINKER RECOVERS SUFFICIENTLY TO RETURN TO THE COMPANY THE BOARD WILL MAKE APPROPRIATE ADJUSTMENTS 9301260125 930126 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK GEOFFREY W HOLMES 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF TECHNOLOGY A NEW POST AT THIS MEDIA COMPANY MR HOLMES HAD BEEN A SENIOR VICE PRESIDENT WITH A WIDE VARIETY OF RESPONSIBILITIES 9301260123 930126 OCCIDENTAL PETROLEUM FINDS GAS LOS ANGELES OCCIDENTAL PETROLEUM CORP SAID IT DISCOVERED GAS IN THE RATANA CONCESSION AREA 60 MILES SOUTHWEST OF ISLAMABAD PAKISTAN OCCIDENTAL SAID THE RATANA NO 2 WELL FLOWED AT A STABILIZED RATE OF 23 MILLION CUBIC FEET OF GAS AND 938 BARRELS OF CONDENSATE A DAY THROUGH A ONEINCH OPENING FROM AN INTERVAL OF 376 FEET IN THE PATALA AND LOCKHART ZONES BETWEEN 16024 AND 16400 FEET THE COMPANY SAID FURTHER DRILLING AND TESTING ARE REQUIRED TO DETERMINE THE EXTENT OF THE RESERVOIRS NATURAL GAS HAS A READY MARKET IN PAKISTAN AND IS A VALUABLE ASSET PRODUCTION FACILITIES ARE BEING INSTALLED AND WE EXPECT TO BE SELLING GAS IN THE NEAR FUTURE SAID RAY R IRANI OCCIDENTAL'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER A GAS SALES PIPELINE IS LOCATED ABOUT ONE MILE FROM THE WELL AND A SALES AGREEMENT HAS BEEN REACHED WITH SUI NORTHERN GAS PIPELINE CO OCCIDENTAL SAID OCCIDENTAL IS OPERATOR OF THE RATANA CONCESSION AREA WITH A 4091 INTEREST AFTER THE AREA BEGINS PRODUCING COMMERCIALLY 9301260122 930126 INVESTMENT BANK MULLS ADVISING ARNOTTS LTD TO BUY BACK SHARES SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA SCHRODERS AUSTRALIA LTD THE INVESTMENT BANK ADVISING ARNOTTS LTD IN ITS DEFENSE OF A TAKEOVER BID FROM CAMPBELL SOUP CO SAID IT IS CONSIDERING ADVISING ARNOTTS TO BUY BACK 10 OF ITS SHARES A SCHRODERS OFFICIAL SAID THAT IF ARNOTTS BOUGHT BACK 10 OF ITS STOCK AT THE OFFER PRICE OF 950 AUSTRALIAN DOLLARS US639 A SHARE IT WOULD RAISE PERSHARE EARNINGS BY 3 FOR THE FISCAL YEAR ENDING IN 1995 THE SCHRODERS OFFICIAL SAID ITS ANNOUNCEMENT WASN'T INTENDED TO INFLUENCE SHAREHOLDERS' DECISIONS ON WHETHER TO ACCEPT CAMPBELL'S BID IT IS SOMETHING THAT JUST INDICATES WHAT A COMPANY IN THE STRONG FINANCIAL POSITION OF ARNOTTS CAN DO HE SAID TONY SULLIVAN DIRECTOR OF ARNOTTS A COOKIE AND CRACKER MAKER SAID SUCH A PROPOSAL IF DEVELOPED WOULDN'T BE CONSIDERED UNTIL AFTER THE CLOSE OF CAMPBELL'S OFFER ON THURSDAY CAMPBELL'S BID VALUES ALL OF ARNOTTS AT A132 BILLION HOWEVER CAMPBELL CAN'T ACQUIRE 100 OF ARNOTTS UNDER AUSTRALIAN LAW DAVID JOHNSON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAMPBELL SAID THE ATTEMPT BY ARNOTTS TO CONJURE UP A BUYBACK SCHEME ON THE EVE OF THE CLOSE OF CAMPBELL'S OFFER IS A TRANSPARENT RUSE BORN OF PANIC CAMPBELL ALSO SAID IT CLEARLY HAS THE POWER TO BLOCK THE BUYBACK CAMPBELL HAD ABOUT 33 OF ARNOTTS WHEN IT MADE ITS OFFER ACCEPTANCES RECEIVED SO FAR BRING ITS SHAREHOLDING UP TO ABOUT 34 BUT THE COMPANY EXPECTS A RUSH OF ACCEPTANCES THIS WEEK MOST BROKERAGES HAVE RECOMMENDED SHAREHOLDERS ACCEPT THE OFFER 9301260121 930126 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOR THE FIRST TIME IN 27 YEARS DEPARTMENT STORE SALES IN JAPAN FELL FROM THE PRIOR YEAR THE 33 DECLINE LAST YEAR TO 952 TRILLION YEN 7606 BILLION DEMONSTRATED THAT SLUGGISH PERSONAL CONSUMPTION REACHED SERIOUS PROPORTIONS THE JAPAN DEPARTMENT STORES ASSOCIATION FIGURES COVERING 271 OUTLETS OF 116 MEMBER FIRMS SHOWED THAT IN THE SIX MAJOR CITIES SALES FELL 46 MEN'S AND WOMEN'S CLOTHING SALES FELL 3 FOR THE FIRST YEARTOYEAR DROP IN MODERN TIMES WHILE HOUSEHOLD GOODS SLUMPED 85 SEPARATELY CONDOMINIUMS PUT UP FOR SALE IN JAPAN LAST YEAR TOTALED 75173 UNITS DOWN 12 FROM 1991 AND THE LOWEST LEVEL SINCE 49955 IN 1976 THE NATIONWIDE OVERSUPPLY OF UNSOLD CONDOS RESULTED FROM THE SPECULATIVE FRENZY IN THE LATE 1980S RUSSIANMADE GOODS MAY NOT BE SOLD IN THE COUNTRY FOR FOREIGN CURRENCY STARTING MARCH 1 THE CENTRAL BANK RULE MAY FORCE CHANGES IN OPERATIONS OF SOME FOREIGN BUSINESSES JOINTVENTURE STORES FOR EXAMPLE BUY SOME FOODS FOR RUBLES AND RESELL THEM FOR DOLLARS HOTELS BARS RESTAURANTS AND TRANSPORTATION FIRMS MAY CONTINUE TO ACCEPT HARD CURRENCY FROM FOREIGNERS LICENSED BUSINESSES MAY SELL IMPORTED GOODS FOR FOREIGN CURRENCY RUSSIA HAS SOUGHT TO FORCE FOREIGN CURRENCIES OUT OF CIRCULATION BUT MANY CITIZENS KEEP SAVINGS IN DOLLARS OR GERMAN MARKS BECAUSE THE RUBLE HAS BEEN RAPIDLY LOSING VALUE HOPES THAT BRITAIN'S ECONOMY HAS STARTED TO PULL OUT OF RECESSION WERE DEALT ANOTHER BLOW FROM DATA SHOWING THAT CORPORATIONS AND CONSUMERS ARE STILL SHUNNING DEBT THOUGH BUSINESS CONFIDENCE RECENTLY REBOUNDED THIS WAS FROM EXTREMELY LOW LEVELS AND CONSUMER OPTIMISM COULD BE JARRED BY LAST MONTH'S UNEXPECTEDLY HIGH UNEMPLOYMENT GROWTH THE FRESH ROUND OF PESSIMISM AROSE FROM BANK AND MORTGAGE SOCIETY FIGURES THAT SHOWED THE RISE IN LENDING LAST MONTH BARELY OFFSET NOVEMBER'S DECLINE WHILE GROWTH IN THE MONEY SUPPLY SLOWED MANUFACTURERS RACED TO REPAY DEBTS STILL AT HIGH LEVELS THAT DISCOURAGE NEW BORROWING SWEDISH COMPANIES FAILED AT A RATE OF 85 EVERY WEEKDAY LAST YEAR AS TOTAL BANKRUPTCIES JUMPED 22 TO 21219 FROM A YEAR EARLIER THE DAILY RATE FROM 70 IN 1991 AND SOARED MORE THAN FOURFOLD FROM 19 IN 1982 WHEN THE GOVERNMENT BEGAN KEEPING THESE RECORDS IN LAST YEAR'S FOURTH QUARTER 6077 BUSINESSES FAILED UP 19 FROM THE YEAREARLIER PERIOD SINGAPORE MAY CONSIDER RELAXING RULES ON THE USE OF SAVINGS DEPOSITED IN A COMPULSORY RETIREMENT FUND SINGAPOREANS CONTRIBUTE PART OF THEIR MONTHLY SALARIES TO THE CENTRAL PROVIDENT FUND WHICH HAS 35 BILLION SINGAPORE DOLLARS US2129 BILLION HOLDERS OF PENSION ACCOUNTS CURRENTLY MAY INVEST SAVINGS ABOVE S30000 IN MUTUAL FUNDS AND GOLD THE PROPOSED CHANGE WOULD ALLOW THE EXCESS FUNDS ABOVE S30000 TO BE BORROWED AND PLACED IN INVESTMENTS WITH GREATER RISKS AND POTENTIAL RETURNS CONFIDENCE AMONG NEW ZEALAND BUSINESSES ABOUT ECONOMIC GROWTH PROSPECTS IS THE HIGHEST IN TWO DECADES IN A SURVEY LAST MONTH BY THE PRIVATE NEW ZEALAND INSTITUTE OF ECONOMIC RESEARCH INC 64 OF 707 RESPONDENTS EXPECTED IMPROVEMENTS IN THE FIRST QUARTER BULLISHNESS PERMEATED THE ECONOMY WITH THE BUILDING INDUSTRY AND FINANCIAL SERVICES FIRMS THE MOST OPTIMISTIC ABOUT THE CONTINUING RECOVERY MOREOVER THE CONFIDENCE LEVEL EXCEEDED 40 FOR FOUR CONSECUTIVE QUARTERS EQUALING A STRING THAT LAST OCCURRED IN 1972 SOUTH KOREA UNVEILED A PLAN TO CUT INTEREST RATES UNDERLINING A POLICY SHIFT TO FOCUS ON GROWTH AND DEEMPHASIZE STABILITY WHICH HAS LED TO A FLAGGING ECONOMY BUT THE MOVE PROMPTED ANXIETY ABOUT HIGHER INFLATION AND REAL ESTATE PRICES THE BANK OF KOREA WILL LOWER LENDING RATES UNDER ITS CONTROL POSSIBLY TODAY LENDING RATES OF COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS WILL BE CUT AS MUCH AS TWO PERCENTAGE POINTS TO 9 THE MOVES COMBINED WITH LAST WEEK'S EASING OF RULES ON CONGLOMERATES' CREDIT ACCESS AND REAL ESTATE USES WERE VIEWED AS A FURTHER SIGN THAT THE GOVERNMENT IS MAKING GROWTH AND CORPORATE VITALITY A HIGHER PRIORITY ECONOMIC GROWTH OF 2 IN LAST YEAR'S FOURTH QUARTER AND 31 IN THE THIRD QUARTER WERE 11YEAR LOWS THE CUTS COULD REDUCE CORPORATE INTEREST PAYMENTS BY SEVERAL TRILLION WON BENEFITING EARNINGS AS WELL AS THE ECONOMY IF THE SAVINGS GO TO CAPITAL SPENDING BUT BANKS ALREADY SADDLED WITH BAD LOANS COULD APPLY STRICTER LENDING TERMS ESPECIALLY FOR SMALL COMPANIES AS SMOG ENGULFED MADRID THE SPANISH CAPITAL WAS PUT ON POLLUTION ALERT FOR ONLY THE THIRD TIME EVER PREVIOUS AIRCLEARING MEASURES WERE TAKEN IN 1987 AND 1989 CHAD ROWAN A 455POUND 6FOOT8 AMERICAN WRESTLER WAS NAMED JAPAN'S SUMO GRAND CHAMPION OR YOKOZUNA DESPITE SOME RELUCTANCE TO OPEN THE PINNACLE OF THE ANCIENT SPORT TO A FOREIGNER FOR THE FIRST TIME THE 23YEAROLD FROM HONOLULU BECAME AN APPRENTICE SUMO WRESTLER JUST FIVE YEARS AGO 9301260120 930126 BUSINESS BRIEFS VERSAR INC RECEIVED A THREE YEAR 58 MILLION TECHNICAL SUPPORT CONTRACT FROM THE ENVIRONMENTAL PROTECTION AGENCY KIRBY CORP SIGNED AN AGREEMENT TO BUY FIVE INLAND TOWBOATS AND 72 BARGES FROM ASHLAND OIL CO'S MARINE TRANSPORTATION DIVISION TPT FOR ABOUT 244 MILLION SUN CHEMICAL CORP A UNIT OF DAINIPPON INK & CHEMICALS INC AGREED TO PURCHASE US PRINTING INK CORP TERMS WEREN'T DISCLOSED RADA ELECTRONIC INDUSTRIES LTD RECEIVED AN ORDER FROM BRITISH AIRWAYS FOR ITS COMMERCIAL AVIATION TEST STATION TERMS WEREN'T DISCLOSED XEROX ENGINEERING SYSTEMS A UNIT OF XEROX CORP AND ZEH GRAPHICS WERE AWARDED A FIVEYEAR CONTRACT TO SUPPLY 54 PLOTTER SYSTEMS TO THE US GEOLOGICAL SURVEY AND THE INTERIOR DEPARTMENT TERMS WEREN'T DISCLOSED NORTH ATLANTIC INDUSTRIES INC'S BOARD APPROVED THE COMPANY'S NAME CHANGE TO NAI TECHNOLOGIES INC THE CHANGE IS SUBJECT TO SHAREHOLDER APPROVAL COMPUTERVISION CORP UNVEILED VERSION 70 OF ITS COMPUTERIZED DRAFTING PACKAGE FOR PERSONAL COMPUTERS VERSACAD THE NEW PACKAGE HAS A LIST PRICE OF 595 9301260119 930126 BUSINESS BRIEF MAYTAG CORP FIRM TO CLOSE FRENCH PLANT SWITCH OUTPUT TO SCOTLAND MAYTAG CORP DISCLOSED PLANS TO SHUTTER A FRENCH VACUUMCLEANER FACTORY AND CONSOLIDATE THOSE OPERATIONS AT AN EXISTING PLANT IN SCOTLAND THE APPLIANCE CONCERN SAID IT WON'T HAVE TO TAKE A SEPARATE CHARGE TO COVER COSTS ASSOCIATED WITH THE PLANNED CLOSURE OF THE HOOVER VACUUM FACTORY IN DIJON TERMINATION OF ITS 650 EMPLOYEES AND THE TRANSFER OF THAT PRODUCTION TO AN UNDERUTILIZED FACILITY NEAR GLASGOW A 95 MILLION CHARGE THE NEWTON IOWA COMPANY TOOK LAST AUGUST DEDICATED IN PART TO A SCALING BACK OF ITS UNPROFITABLE EUROPEAN OPERATIONS WILL COVER THE COSTS OF THE CONSOLIDATION THE PLANT CLOSURE WILL TAKE PLACE OVER MOST OF 1993 THE PLANT IN CAMBUSLING SCOTLAND CURRENTLY EMPLOYS ABOUT 900 PEOPLE IT WILL GAIN ANOTHER 400 WORKERS AFTER IT ASSUMES THE FRENCH PLANT'S PRODUCTION 9301260118 930126 BIG CHARGE FOR '92 EXPECTED AT UNITED TECHNOLOGIES CORP BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP MAY TAKE A CHARGE OF AS MUCH AS 500 MILLION AGAINST ITS 1992 EARNINGS BECAUSE OF A DETERIORATING COMMERCIAL AND DEFENSE JET ENGINE BUSINESS ACCORDING TO WALL STREET ANALYSTS THE COMPANY IS SCHEDULED TO REPORT ITS FULLYEAR RESULTS TODAY UNITED TECHNOLOGIES PREVIOUSLY SAID IT WOULDN'T MEET ITS EARLIER PROFIT PROJECTION OF 4 TO 5 A SHARE FOR 1992 IN 1991 THE HARTFORD CONN COMPANY HAD A LOSS OF 102 BILLION WHICH RESULTED FROM A 153 BILLION PRETAX CHARGE IN CONNECTION WITH A RESTRUCTURING PROGRAM THE ANALYSTS IN ANTICIPATION OF TODAY'S EARNINGS ANNOUNCEMENT SAID WORSENING BUSINESS CONDITIONS AT THE COMPANY'S PRATT & WHITNEY JETENGINE UNIT HAS PROMPTED THE COMPANY TO PLAN FURTHER COSTCUTTING MEASURES INCLUDING DISMISSALS A SPOKESMAN FOR THE COMPANY DECLINED TO COMMENT ON THE ANALYSTS' PROJECTIONS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY UNITED TECHNOLOGIES' SHARES CLOSED AT 47625 A SHARE UP 125 CENTS ANALYSTS APPLAUDED THE COMPANY'S MOVE TO TAKE FURTHER RESTRUCTURING CHARGES IN ANTICIPATION OF THE ANNOUNCEMENT THE COMPANY NEEDS TO LOWER THE BREAKEVEN POINT SAID STEVE BINDER AN ANALYST AT BEAR STEARNS & CO EXPLAINING THAT AN ADDITIONAL COSTCUTTING PLAN WILL ENABLE UNITED TECHNOLOGIES TO REPORT IMPROVED RESULTS THAT MUCH SOONER IT'S A STEP IN THE RIGHT DIRECTION HE SAID HE WARNED HOWEVER THAT HOW WELL THE PRATT & WHITNEY UNIT RECOVERS WILL DEPEND ON SPARE PARTS ORDERS FROM AIRLINES WHICH CURRENTLY ARE IN A DEEP SLUMP UNITED TECHNOLOGIES HAD EXPECTED THE SPARE PARTS BUSINESS TO RECOVER BY NOW BUT LATE LAST YEAR THE COMPANY ANNOUNCED THAT IT'S CLEAR THAT THIS IS NOT HAPPENING THE ANALYSTS SAID FURTHER COSTCUTTING IS BEING PUSHED BY UNITED TECHNOLOGIES' PRESIDENT GEORGE DAVID AND KARL KRAPEK WHO WAS RECENTLY INSTALLED AS THE HEAD OF PRATT & WHITNEY UNITED TECHNOLOGIES TOOK 153 BILLION IN PRETAX CHARGES AGAINST 1991 EARNINGS AS PART OF A DRASTIC RESTRUCTURING OF THE COMPANY THE PLAN INTENDED TO SLASH COSTS BY 1 BILLION BY 1994 INCLUDED THE ELIMINATION OF 13900 JOBS AND THE CLOSING OR CONSOLIDATION OF MORE THAN 100 FACILITIES WORLDWIDE AT THAT TIME SOME ANALYSTS WERE SURPRISED BY THE EXTENT OF THE CHARGE NICHOLAS HEYMANN AN ANALYST AT COUNTY NATWEST SAID IN A REPORT THAT UNITED TECHNOLOGIES MAY FURTHER REDUCE ITS WORK FORCE BY 5000 EMPLOYEES OR MORE HE SAID THIS WOULD IMPROVE ITS LONGTERM PROFITABILITY BUT PROBABLY WOULDN'T BEGIN TO IMPACT BOTTOM LINE RESULTS UNTIL 1994 AND BEYOND HE SAID FURTHER RESTRUCTURING CHARGES CAN BE POTENTIALLY SIZABLE AT 500 MILLION OR MORE 9301260116 930126 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK BRUCE BUTTERFIELD 43 YEARS OLD WAS NAMED PRESIDENT OF THE NEW ESL/ELT DIVISION OF THIS MAJOR PUBLISHING AND ENTERTAINMENT CONCERN DENNIS HOGAN 40 FORMERLY PRESIDENT OF THE REGENTS/PRENTICE HALL DIVISION WHICH THE ENGLISHASASECONDLANGUAGE PUBLISHING OPERATION HAD BEEN PART OF WILL BECOME PRESIDENT OF THE RECONSTRUCTED REGENTS/PRENTICE HALL VOCATIONAL AND TECHNICAL DIVISION MR BUTTERFIELD HAD BEEN PRESIDENT OF LONGMAN PUBLISHING GROUP A WHITE PLAINS NY UNIT OF EDUCATIONAL PUBLISHER ADDISONWESLEY 9301260115 930126 INTERNATIONAL HONG KONG TYCOON AIMS TO HELP BRING FOREIGN CAPITAL TO CHINA'S HEARTLAND BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL WUHAN CHINA WHEN CHINA OPENED COASTAL CITIES TO OVERSEAS INVESTORS IN 1979 THE IDEA WAS THAT FOREIGN CAPITAL AND KNOWHOW WOULD TRICKLE INLAND AND ENRICH CHINA'S POOR HEARTLAND MORE THAN A DECADE LATER EVEN WITH MOST OF CHINA NOW OPEN TO INVESTMENT ABOUT 85 OF FOREIGNINVESTED PROJECTS REMAIN IN COASTAL PROVINCES THE PRIMARY REASON IS THAT CHINA'S TRANSPORT SYSTEM IS TOO UNRELIABLE TO DELIVER INLAND GOODS TO OVERSEAS MARKETS THIS IS DESTINED TO CHANGE IN THE '90S RISING WAGES AND ROCKETING REAL ESTATE PRICES ON THE COAST ARE SENDING FACTORY OWNERS IN SEARCH OF CHEAPER INLAND LOCALES TRANSPORT IS IMPROVING AND FOREIGNINVESTED FACTORIES NO LONGER REQUIRED TO EXPORT MOST OF WHAT THEY MAKE CAN NOW SELL THEIR MERCHANDISE IN CHINA THE CENTRAL GOVERNMENT IS ENCOURAGING FOREIGN INVESTORS AND HOMEGROWN ENTREPRENEURS TO INVEST IN THE HEART OF CHINA BEIJING HAS DESIGNATED THE YANGTZE RIVER BASIN WHICH CUTS A 4000MILE PATH ACROSS CHINA'S MIDSECTION AND IS HOME TO HALF A BILLION PEOPLE AS THE COUNTRY'S PARAMOUNT DEVELOPMENT PRIORITY TO BE SUCCESSFUL IMPROVED TRANSPORT WILL BE KEY AS A RESULT ALL EYES ARE ON THE CITY OF WUHAN A RAILWAY CROSSROADS 750 MILES FROM THE COAST THAT SERVES AS CENTRAL CHINA'S TRANSPORT HUB FATE HAS THRUST THIS RAMSHACKLE AND UNPRETENTIOUS YANGTZE RIVER PORT INTO THE AMBITIOUS DREAMS OF A HONG KONG TYCOON NAMED PETER WOO IF THIS UNLIKELY DUO WUHAN AND MR WOO'S WHARF HOLDINGS LTD IS SUCCESSFUL TRICKLEIN INVESTMENT COULD BECOME A FLOOD WE HAVE NO ILLUSIONS THAT THIS IS GOING TO BE SIMPLE SAYS JOHN HUNG SPOKESMAN FOR WHARF WHICH IS DRAFTING PLANS FOR A 2 BILLION INDUSTRIAL PARK AND CARGO CONTAINER COMPLEX JUST OUTSIDE WUHAN WHARF'S CHOSEN SITE IS THE VILLAGE OF YANGLUO LOCATED ON A DOGLEG OF THE YANGTZE 19 MILES NORTH OF DOWNTOWN WUHAN IT IS NOW BEST KNOWN AS THE SPOT WHERE SWIRLING CURRENTS FORCE THE BODIES OF DROWNING VICTIMS TO THE SURFACE KNEELING ON MAPS SPREAD ON THE FLOOR OF HIS OFFICE WUHAN MAYOR ZHAO BAOJIANG ENTHUSIASTICALLY EXPLAINS HOW HE AND WHARF WILL TRANSFORM WUHAN A CITY OF SEVEN MILLION INTO THE CHICAGO OF CHINA A FORMER ARMY ARCHITECT WHO NOW HAS A PENCHANT FOR PINSTRIPES MR ZHAO 51 YEARS OLD BECAME PLANNING DIRECTOR OF WUHAN IN 1980 AND MAYOR IN 1987 WUHAN IS A LATE BLOOMER THIS IS SOMETHING I'VE WANTED FOR A LONG TIME SAYS MR ZHAO IN 10 YEARS WE WILL CATCH UP WITH THE COAST ON A YANGLUO RIVERBANK NOW COVERED BY FISH PONDS WHARF AND WUHAN PLAN TO BUILD THEIR CARGO CONTAINER FACILITY GOODS FROM FACTORIES THROUGHOUT CENTRAL CHINA WOULD COME HERE FOR PACKING INTO CONTAINERS AND TRANSSHIPMENT BY RAIL TO HONG KONG OR BY CARGO BOATS TO NINGBO A DEEPWATER PORT NEAR SHANGHAI WHERE WHARF IS BUILDING A 100 MILLION CONTAINER DOCK WHARF AND WUHAN HAVE ALSO MAPPED OUT A 20SQUAREMILE PIECE OF YANGLUO FARMLAND TO BUILD AN INDUSTRIAL PARK THE COMPANY HAS OTHER PLANS TO TRANSFORM A LITTLEUSED RAIL LINE IN DOWNTOWN WUHAN INTO A LIGHTRAIL COMMUTER SYSTEM WHARF WOULD DEVELOP SHOPPING CENTERS APARTMENTS AND OFFICE TOWERS AT EACH OF THE EIGHT COMMUTER STATIONS WHARF WON'T PUT A PRICE TAG ON THESE AMBITIONS FOR FEAR OF RAISING CONCERN AMONG ITS SHAREHOLDERS ABOUT TOO MUCH EXPOSURE IN CHINA BUT MR WOO HAS SAID THAT WHARF WHICH HAS ASSETS OF 46 BILLION WILL COMMIT 10 TO 20 OF ITS BALANCE SHEET TO CHINA WUHAN MAYOR ZHAO ESTIMATES THE PROJECTS WILL COST 2 BILLION WITH EACH PARTNER RAISING HALF RAISING MONEY ISN'T A PROBLEM FOR WHARF A UNIT OF WORLD INTERNATIONAL HOLDINGS LTD AND PART OF THE BUSINESS EMPIRE LEFT BEHIND BY HONG KONG SHIPPING MAGNATE YK PAO WHO DIED IN 1991 MR WOO 47 IS A SHANGHAIBORN HONG KONGRAISED USEDUCATED FORMER CHASE MANHATTAN BANKER WHO BECAME MR PAO'S RIGHTHAND MAN AFTER MARRYING ONE OF THE WEALTHY SHIPOWNER'S DAUGHTERS WHARF OWNS SEVEN MILLION SQUARE FEET OF HONG KONG'S MOST VALUABLE OFFICE RESIDENTIAL AND SHOPPING CENTER PROPERTY BUT WITH 90 OF HIS COMPANY'S ASSETS IN HONG KONG MR WOO IN 1989 WORKED TO BOLSTER CONFIDENCE IN THE COLONY WHICH HAD BEEN SHAKEN BY CHINA'S CRACKDOWN AT TIANANMEN SQUARE BY LAUNCHING A PUBLIC RELATIONS CAMPAIGN CALLED HONG KONG PLUS WITH CHARTS AND GRAPHS HE DETAILED HOW THE BRITISH COLONY AND GUANGDONG PROVINCE TOGETHER MAKE UP A WORLDCLASS ECONOMIC POWERHOUSE WHARF THEN DIDN'T HAVE A PENNY INVESTED IN CHINA MR WOO THEN CONCOCTED HONG KONG PLUS PLUS WHICH POSTULATED THAT HONG KONG WOULD BE MORE VALUABLE TO CHINA IF LINKED TO AN INLAND SHIPPING CENTER HE CAME ACROSS WUHAN WHILE SEARCHING FOR A LOGICAL TRANSPORT HUB IN CENTRAL CHINA MR WOO'S CONCERNS ABOUT HONG KONG LINKING UP WITH INLAND CHINA ARE SHARED BY MANY THE COLONY WHICH CHINA WILL TAKE OVER IN 1997 IS CONCERNED ABOUT LOSING ITS ROLE AS THE TRANSSHIPMENT CENTER FOR CHINA'S CONTAINERIZED EXPORTS CHINA HAS BEEN DUMPING BILLIONS INTO PORT CONSTRUCTION IN SHENZHEN JUST ACROSS THE BORDER FROM HONG KONG NEW PORT FACILITIES WILL GIVE HONG KONG STIFF COMPETITION BEFORE LONG WITH HONG KONG'S ONLY RAIL LINK WITH CHINA LOADED WITH PASSENGERS PIGS AND PRODUCE AND THOUSANDS OF CONTAINERS OF EXPORT CARGO EACH DAY MUST INCH THEIR WAY TO HONG KONG HARBOR ALONG CLOGGED ROADS RAIL OR WATER TRANSPORT IS THE ONLY EFFICIENT WAY TO MOVE LONGDISTANCE CARGO IN CHINA OF THE COUNTRY'S 600000 MILES OF ROADS ONLY 25 IS PAVED AND ONLY 4 IS MULTILANE HIGHWAY CHINESE FACTORIES MUST OFTEN BEG OR BRIBE TO GET THEIR CARGO ON CHINA'S OVERCROWDED TRAINS AT THE TURN OF THE CENTURY WUHAN'S SUBDIVISION OF HANKOU WAS SECOND ONLY TO SHANGHAI IN VOLUME OF MANUFACTURED GOODS AND EXPORTS BUT WUHAN HAS BEEN BLED DRY BY BEIJING SINCE THE COMMUNISTS CAME TO POWER IN 1949 BEIJING STILL TAKES 400 MILLION OF THE CITY'S 618 MILLION IN ANNUAL REVENUE AS A RESULT THE CITY'S FACTORIES ARE MOSTLY CRUMBLING BRICK STRUCTURES BUILT BEFORE THE 1911 FALL OF THE QING DYNASTY WHICH WAS TRIGGERED BY A WORKERS' REBELLION IN WUHAN THE CITY CENTER LOOKS LIKE WORLD WAR II ENDED YESTERDAY SOME 800000 ITINERANT WORKERS LIVE IN MAKESHIFT SHEDS THE SUN IS RARELY VISIBLE THROUGH WUHAN'S THROATSEARING POLLUTED AIR THE CITY IS HOME TO ABOUT 100000 COLLEGE STUDENTS AND 220000 SCIENTISTS WORKING AT 461 RESEARCH INSTITUTES THIS LED THE CITY TO BUILD A HIGHTECH ZONE NEXT TO THE UNIVERSITY SO FAR THE GOVERNMENT HAS LURED NEC CORP OF JAPAN AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS TO INVEST IN JOINTVENTURE FIBER OPTIC FACTORIES ONE ATTRACTION WORKERS IN WUHAN PLANTS EARN ABOUT 55 A MONTH COMPARED WITH 150 IN SIMILAR SHENZHEN FACTORIES MR WOO'S PROMOTION OF WUHAN ALREADY HAS HELPED ATTRACT NEW INVESTORS IN THE FIRST 10 MONTHS OF LAST YEAR WUHAN SIGNED 357 CONTRACTS WITH FOREIGN COMPANIES FOR PROJECTS VALUED AT 11 BILLION IN THE PREVIOUS DECADE WUHAN DREW ONLY 175 FOREIGN INVESTORS AND 400 MILLION IN FOREIGN FUNDS AMONG THE NEWCOMERS ARE 81 REAL ESTATE DEVELOPERS 9301260114 930126 OIL PRICES SURGE FOLLOWING PROPOSAL BY OPEC MEMBERS TO CUT PRODUCTION BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL WORLD OIL PRICES SURGED PROPELLING STOCKS OF OIL COMPANIES SHARPLY HIGHER AFTER LEADING OPEC MEMBERS PROPOSED CUTS IN PRODUCTION IN AN ATTEMPT TO FIRM UP WEAK MARKETS BOTH SAUDI ARABIA AND IRAN THE NO 1 AND NO 2 PRODUCERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES URGED MAJOR REDUCTIONS IN OPEC'S TOTAL OUTPUT TO STABILIZE CRUDE OIL PRICES DOWN SOME 3 A BARREL SINCE MIDOCTOBER HISHAM NAZER SAUDI OIL MINISTER CALLED FOR CUTS TOTALING ONE MILLION BARRELS A DAY IN OPEC'S PRODUCTION CEILING CURRENTLY 246 MILLION BARRELS A DAY TO BE SHARED PROPORTIONATELY BY THE MEMBERS THAT WAS ENOUGH OF A CATALYST TO TRIGGER A RUNUP IN OIL PRICES ON MOST OF THE WORLD'S OIL MARKETS NEVERTHELESS THE HIGHER PRICES MAY NOT HOLD IF THE OPEC NATIONS HAVE THEIR USUAL DIFFICULTIES IN AGREEING ON A NEW CEILING AND IN ABIDING BY THE QUOTAS OR IF OIL DEMAND ISN'T AS MUCH AS GENERALLY ESTIMATED A WARM WINTER IN THE MAJOR OILCONSUMING NATIONS AND THE POSSIBILITY OF NEW OIL TAXES IN THE US AND EUROPE ALREADY THREATEN TO TRIM DEMAND FOR OPEC'S OIL IN US FUTURES TRADING LIGHT LOWSULFUR CRUDE FOR MARCH DELIVERY JUMPED 83 CENTS TO SETTLE AT 1966 A BARREL THAT WAS THE BIGGEST ONEDAY MOVE ON THE NEW YORK MERCANTILE EXCHANGE SINCE MAY 26 1992 WHEN CRUDE FUTURES LEAPED ON NEWS THAT THE SAUDIS WOULD LIKE TO SEE HIGHER OIL PRICES IN US OIL FIELDS SOME REFINERS INCREASED POSTED PRICES 75 CENTS A BARREL FOR WEST TEXAS INTERMEDIATE THE BENCHMARK CRUDE AND IN LONDON FUTURES TRADING BRENT BLEND CRUDES WERE UP AS MUCH AS 76 CENTS THE HIGHER CRUDE PRICES HELPED TO PUSH UP THE VALUES OF OIL COMPANIES' STOCK SHARES OF MOST MAJOR OIL COMPANIES SHOWED BIG GAINS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE EXXON CORP WAS UP 250 A SHARE TO 60625 MOBIL CORP ROSE 2625 TO 62875 CHEVRON CORP INCREASED 225 TO 70 AND TEXACO INC ROSE 1625 TO 5975 THE OIL SECTOR WAS ALSO BOOSTED BY GENERALLY HIGHER FOURTHQUARTER EARNINGS RESULTS I WOULD GUESS THAT THE MARKET CAPITALIZATION OF THE OIL INDUSTRY IS AT LEAST 20 BILLION HIGHER AFTER YESTERDAY'S STOCKPRICE INCREASES SAID WILLIAM L RANDOL AN INTERNATIONAL OIL ANALYST WITH SALOMON BROTHERS BUT MR RANDOL AND SOME OTHER OIL ANALYSTS ADDED A NOTE OF CAUTION FOR THE OIL MARKETS THERE ISN'T ANY GUARANTEE THAT THE 12 MEMBERS OF OPEC ECUADOR IS NOW OUT OF THE GROUP CAN AGREE ON NEW QUOTAS WHEN THE OIL MINISTERS MEET IN VIENNA FEB 13 A MAJOR ISSUE IN REACHING SUCH AN AGREEMENT IS THE STANDING POSITION OF SAUDI ARABIA THAT PRODUCTION CUTS MUST BE SHARED PROPORTIONATELY LEAVING IT A ONETHIRD SHARE OF OPEC'S OUTPUT IT'S DOUBTFUL THAT SEVERAL OF THE SMALLER PRODUCERS WOULD BE WILLING TO CUT THEIR OWN ALREADYLIMITED PRODUCTION BY THE 55 THAT WOULD BE INDICATED BY THE RECOMMENDED TOTAL CUT OF ONE MILLION BARRELS THE SAUDIS NOW PRODUCING SOME 84 MILLION BARRELS A DAY MIGHT ACCOUNT FOR 400000 BARRELS OF THE REDUCTION NOR IS THERE ANY ASSURANCE THAT THE EXPORTERS WILL SHOW ANY MORE DISCIPLINE IN ABIDING BY A NEW CEILING THAN THEY HAVE IN THE PAST IF INDEED THEY CUT THE CEILING BY ONE MILLION TO 236 MILLION BARRELS A DAY LIKELY OUTPUT WILL STILL BE 241 MILLION SAID PAUL MLOTOK AN INTERNATIONAL OIL ANALYST AT MORGAN STANLEY & CO BUT HE SAID THAT SHOULD HELP TO KEEP WORLD OIL MARKETS IN BALANCE SOME OTHER OIL ECONOMISTS QUESTIONED HOWEVER WHETHER THE LEVEL OF CUTS SUGGESTED BY SAUDI ARABIA WOULD BE ENOUGH TO STABILIZE THE MARKET FOR LONG CYRUS H TAHMASSEBI CHIEF ECONOMIST FOR ASHLAND OIL INC ESTIMATES SECONDQUARTER DEMAND FOR OPEC OIL WILL BE ONLY 233 MILLION BARRELS A DAY FOR THE SECOND QUARTER HE SAID ONE MILLION IS NOT ENOUGH OPEC NEEDS TO CUT 15 MILLION TO TWO MILLION BARRELS A DAY TO STABILIZE THE MARKET STILL TRADERS SUCH AS PETER BEUTEL OF BRODY WHITE & CO SAID THERE APPEARED TO BE A CHANGE IN THE DIRECTION OF PETROLEUM PRICES THIS ACTION BY SAUDI ARABIA MAY HAVE AT LEAST TEMPORARILY REVERSED THE TREND DOWNWARD HE SAID MR NAZER'S CALL FOR THE REDUCTION WAS ANNOUNCED OVER THE WEEKEND BY THE SAUDI PRESS AGENCY IT SAID MR NAZER HAD SUBMITTED THE PROPOSAL TO ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT WHO IS VISITING MIDDLE EAST MEMBERS OF OPEC TO TRY TO REACH A CONSENSUS BEFORE THE FEBRUARY MEETING THE REDUCTION SHOULD BE DISTRIBUTED AMONG THE MEMBERS ACCORDING TO THEIR PRODUCTION QUOTAS PROVIDING THAT ALL MEMBERS SHOULD ABIDE BY THE AGREEMENT AND REFRAIN FROM GIVING ANY DISCOUNTS MR NAZER SAID THERE IS SPECULATION IN THE OIL INDUSTRY THAT IT IS HARDLY COINCIDENTAL THAT MR NAZER IS RECOMMENDING AN OPEC MOVE TO PROP UP PRICES JUST AS THE CLINTON ADMINISTRATION BEGINS TALKING ABOUT POSSIBLE NEW ENERGY TAXES THE US IS OPEC'S BIGGEST CUSTOMER AND OPEC MEMBERS PARTICULARLY SAUDI ARABIA HAVE BEEN VOCIFEROUSLY OPPOSED TO ANY NEW OIL TAXES TO BE APPLIED BY THE CONSUMING NATIONS OIL ECONOMISTS NOTED THAT NEW TAXES ARE EASIER TO LEVY WHEN PETROLEUM PRICES ARE GOING DOWN THE PROBABILITY OF OILIMPORT FEES GROWS GEOMETRICALLY AS THE PRICE GETS BELOW 18 A BARREL FOR THE MAIN US CRUDE SAID LAWRENCE GOLDSTEIN PRESIDENT OF PETROLEUM INDUSTRY RESEARCH FOUNDATION 9301260113 930126 TECHNOLOGY AT&T FINDS NEW WAY TO PRODUCE MICROCHIPS MURRAY HILL NJ RESEARCHERS AT AMERICAN TELEPHONE & TELEGRAPH CO'S BELL LABORATORIES SAID THEY DEVELOPED A NEW TECHNIQUE FOR ETCHING CIRCUIT PATTERNS ON SILICON WAFERS THAT COULD LEAD TO SIMPLER AND CHEAPER MICROCHIP MANUFACTURING THE NEW TECHNIQUE INVOLVES COATING A WAFER WITH A LIGHTSENSITIVE GAS INSTEAD OF A LIQUID NORMALLY MICROCHIPS ARE MADE BY PROJECTING CIRCUIT DESIGNS FROM MASKS WHICH ARE ANALOGOUS TO PHOTO NEGATIVES ONTO LIGHTSENSITIVE LIQUID WHICH IS ANALOGOUS TO PHOTO FILM USING GAS INSTEAD OF LIQUID COULD SOMEDAY REDUCE THE NUMBER OF STEPS IN THE MANUFACTURING PROCESS BELL LABS SAID USING GAS ALSO COULD MAKE IT POSSIBLE TO MANUFACTURE CHIPS IN A SEALED PIECE OF EQUIPMENT INSTEAD OF REQUIRING THE EXPENSIVE ELABORATELY SANITIZED CLEAN ROOMS OF TODAY'S CHIP FACTORIES A BELL SPOKESMAN SAID THE NEW GAS PROCESS COULD BE IN USE WITHIN FIVE YEARS THE RESEARCH WAS PUBLISHED IN YESTERDAY'S ISSUE OF APPLIED PHYSICS LETTERS 9301260112 930126 MERRILL LYNCH 4THPERIOD NET ROSE 30 AMERICAN EXPRESS'S SHEARSON HAD A LOSS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO THE NATION'S BIGGEST BROKERAGE FIRM REPORTED A 30 JUMP IN FOURTHQUARTER EARNINGS AND RECORD 1992 NET INCOME OF 894 MILLION SPURRING A RALLY IN BROKERAGE STOCKS SEPARATELY SHEARSON LEHMAN BROTHERS INC THE SECOND LARGEST BROKERAGE FIRM REPORTED A FOURTHQUARTER LOSS OF 166 MILLION REFLECTING WRITEDOWNS FOR LITIGATION AND SOURED REAL ESTATE THE AMERICAN EXPRESS CO UNIT ALSO DISCLOSED THAT ITS PARENT INJECTED 175 MILLION TO SHORE UP SHEARSON'S CAPITAL SHEARSON'S SURPRISINGLY POOR EARNINGS HELPED LEAD TO YESTERDAY'S DEMOTION OF SHEARSON CHAIRMAN HOWARD L CLARK JR PEOPLE FAMILIAR WITH SHEARSON SAID MEANWHILE GOLDMAN SACHS & CO WALL STREET'S LAST MAJOR PRIVATE PARTNERSHIP HAD A 70 JUMP IN FISCAL THIRDQUARTER NET ACCORDING TO A CONFIDENTIAL OFFERING DOCUMENT PEOPLE FAMILIAR WITH GOLDMAN SAY THE FIRM HAD RECORD NET OF MORE THAN 104 BILLION BEFORE PAY TO PARTNERS FOR ITS YEAR ENDED NOV 30 MERRILL SAID ITS FOURTHQUARTER NET WAS 2214 MILLION OR 197 A SHARE COMPARED WITH 1707 MILLION OR 146 A SHARE IN THE YEAREARLIER PERIOD THE FOURTHQUARTER RESULTS 15 HIGHER THAN ANALYSTS' EXPECTATIONS BOOSTED MERRILL'S STOCK BY 2 IN EARLY NEW YORK STOCK EXCHANGE COMPOSITE TRADING MERRILL'S STOCK CLOSED AT 6775 A SHARE UP 75 CENTS OTHER BROKERAGE SOCKS SURGED ON THE MERRILL NEWS AG EDWARDS INC AND QUICK & REILLY GROUP INC EACH ROSE ABOUT 5 AND THE SECURITIES BROKERS SEGMENT OF THE DOW JONES EQUITY MARKET INDEX ROSE 14 YESTERDAY AND IS UP ABOUT 7 SO FAR THIS YEAR BUT THE RALLY IN BROKERAGE STOCKS WHICH IS BEING FUELED BY AN AVALANCHE OF SMALLINVESTOR ACTIVITY IN OVERTHECOUNTER STOCKS AND A CONTINUED SIZZLING UNDERWRITING MARKET ISN'T LIKELY TO LAST LONG SOME BROKERAGE ANALYSTS SAID AS SOON AS THE OTC MARKET RUNS OUT OF GAS AND THERE'S A LITTLE SLOWDOWN IN DEAL FLOW AND THIS WILL HAPPEN THESE STOCKS ARE GOING TO BACK OFF SAYS LAWRENCE ECKENFELDER AN ANALYST AT PRUDENTIAL SECURITIES INC MERRILL'S EARNINGS INCLUDED TWO ACCOUNTING CHANGES THAT KNOCKED THE FIRM'S NET BY 586 MILLION BEFORE THE ACCOUNTING CHANGES WHICH INCLUDED ACCRUAL FOR CERTAIN POSTRETIREMENT EMPLOYEE BENEFITS MERRILL'S 1992 NET WAS 9524 MILLION OR 836 A SHARE 37 HIGHER THAN THE 6961 MILLION OR 602 A SHARE IN 1991 MERRILL'S FOURTHQUARTER REVENUE INCREASED 46 TO 327 BILLION REVENUE FROM COMMISSIONS AND TRADING WERE SLIGHTLY HIGHER WHILE REVENUE FROM INVESTMENT BANKING FELL 42 ASSETMANAGEMENT AND CUSTODIAL FEES ROSE 6 IN THE FOURTH QUARTER BRINGING CLIENT ASSETS MANAGED BY THE FIRM TO 138 BILLION OTHER REVENUE JUMPED 47 IN THE QUARTER STEMMING FROM ACTIVE INVESTOR DEMAND FOR A NEW MERRILL PORTFOLIO MANAGEMENT SERVICE AND INVESTMENT GAINS FROM THE SALE OF ITS REMAINING INTEREST IN TELEPORT COMMUNICATIONS GROUP INC FOR ALL OF 1992 MERRILL'S REVENUE ROSE 86 TO 1343 BILLION SHEARSON'S POOR RESULTS STUNNED ANALYSTS SOME OF WHOM HAD EXPECTED FOURTHQUARTER OPERATING PROFIT OF 50 MILLION BEFORE THE WRITEDOWNS SHEARSON'S FOURTHQUARTER EARNINGS WERE FLAT THE FOURTHQUARTER LOSS COMPARED WITH A 130 MILLION GAIN IN THE YEAREARLIER QUARTER FOR ALL OF 192 SHEARSON HAD A LOSS OF 116 MILLION COMPARED WITH A GAIN OF 207 MILLION IN 1991 THE 1992 RESULTS REFLECTED A NUMBER OF NEWLY DISCLOSED CHARGES INCLUDING 59 MILLION AFTER TAXES FOR ADDITIONAL LEGAL RESERVES AND 107 MILLION AFTER TAXES REFLECTING CERTAIN REALESTATE INVESTMENTS SHEARSON'S PERFORMANCE WAS AN ELEMENT IN YESTERDAY'S DEMOTION OF MR CLARK TO VICE CHAIRMAN YESTERDAY A WALL STREET EXECUTIVE SAID MR CLARK WAS REPLACED AS SHEARSON CHAIRMAN BY JAMES D ROBINSON III MEANWHILE GOLDMAN SAID NET IN ITS THIRD QUARTER ENDED AUG 28 WAS 2532 MILLION COMPARED WITH 1493 MILLION IN THE YEAREARLIER PERIOD GOLDMAN'S EARNINGS WERE MADE PUBLIC AS PART OF AN OFFERING CIRCULAR FILED AS PART OF A PRIVATE OFFERING OF GOLDMAN NOTES THE CIRCULAR WAS DISCLOSED IN INVESTMENT DEALERS' DIGEST GOLDMAN HAD RECORD EARNINGS FOR THE YEAR ENDED NOV 30 PEOPLE FAMILIAR WITH THE FIRM SAID ECLIPSING ITS 104 BILLION IN 1991 NET UNLIKE EARNINGS AT MOST SECURITIES FIRMS WHICH REFLECT INCOME AFTER EMPLOYEE PAY GOLDMAN'S NET IS BEFORE PAYOUTS TO PARTNERS 9301260111 930126 WHO'S NEWS WHITTAKER CORP WHITTAKER CORP LOS ANGELES MALCOLM T STAMPER 67 YEARS OLD WAS ELECTED A DIRECTOR OF THE AEROSPACE CONCERN INCREASING THE BOARD'S SIZE TO SIX MR STAMPER RETIRED AS VICE CHAIRMAN OF BOEING CO IN 1990 9301260110 930126 PEPPERAND SALT FROM THOSE WHO KEEP DROPPING OUT IS ROUGHLY NINETY PERCENT INVECTIVE EB DE VITO IGNORANCE IS LIKE MONEY IN THE BANK THE LONGER IT REMAINS UNTOUCHED THE GREATER IT GROWS 9301260109 930126 INTERNATIONAL BENETTON'S FIRST CUBAN BOUTIQUE LURES FOREIGNERS ONLY CLOSES DOOR TO LOCALS BY WALL STREET JOURNAL REPORTERS JOSE DE CORDOBA IN MIAMI AND LISA BANNON IN MILAN BENETTON GROUP SPA THE ITALIAN FASHION COMPANY OPENED THE FIRST OF ALMOST A DOZEN PLANNED BOUTIQUES IN CUBA STEPPING IMMEDIATELY INTO A CONTROVERSY CUBANAMERICAN GROUPS EXPRESSED ANGER THAT THE BENETTON SHOPS WILL CATER TO TOURISTS OWNED BY THE CUBAN GOVERNMENT THEY WILL SELL GOODS ONLY FOR DOLLARS AND THUS BE OFFLIMITS TO MOST CUBANS THE FIRST HARDCASH SHOP WHICH OPENED FRIDAY IS IN A HAVANA HOTEL LAURA POLLINI A COMPANY SPOKESWOMAN IN TREVISO ITALY SAID BENETTON HOPES TO OPEN UNDER LICENSE A TOTAL OF 10 UNITED COLORS OF BENETTON BOUTIQUES BY YEAR END THE STORES TO BE LOCATED IN TOURIST AREAS WILL SELL ITALIANPRODUCED MERCHANDISE BECAUSE IT IS A CRIMINAL OFFENSE IN CUBA TO POSSESS FOREIGN CURRENCY MOST CUBANS WON'T BE ABLE TO SHOP IN THE BENETTON STORES IN FACT THEY WILL BE RISKING PRISON IF THEY EVEN SHOW UP WITH DOLLARS TO DO SO WE OPERATE IN 108 COUNTRIES AND DON'T INTEND TO DISCRIMINATE AGAINST CUBA SAID LUCIANO BENETTON THE COMPANY'S MANAGING DIRECTOR WHO MET WITH FIDEL CASTRO IN HAVANA ON FRIDAY WE ALSO HAVE PLANS TO OPEN A SHOP IN NORTH KOREA NEXT SPRING MR BENETTON SAID IN A STATEMENT RELEASED IN NEW YORK BY HIS FIRM'S UNIT THERE BENETTON'S ANNOUNCEMENT ANGERED CUBAN EXILES IN THE US ABOUT 50 YOUNG CUBANAMERICANS PICKETED A BENETTON STORE AT A MIAMI MALL SAYING THEY WOULD BURN THEIR BENETTON CLOTHES IT'S AN OUTRAGE SAID FRANK CALSON OF FREEDOM HOUSE A NEW YORKBASED HUMAN RIGHTS AND POLICY ORGANIZATION AT A TIME WHEN THERE'S GREAT SUFFERING IN CUBA IT'S A TERRIBLE THING FOR A COMPANY TO OPEN UP STORES WHERE CUBANS AREN'T ALLOWED JOE GARCIA A SPOKESMAN FOR THE CUBAN AMERICAN NATIONAL FOUNDATION A POWERFUL MIAMI LOBBYING GROUP SAID ADDITIONAL PROTESTS ARE PLANNED IN LOS ANGELES AND NEW YORK AS WELL AS IN SPAIN AND VENEZUELA WHERE THE FOUNDATION HAS CHAPTERS BENETTON'S NEW YORK SPOKESMAN SAID SUCH ACTIONS WOULD BE REGRETTABLE NOTING THAT THE COMPANY WAS HEAVILY INVOLVED IN THE FORMER SOVIET BLOC BEFORE ITS COLLAPSE HE SAID BENETTON BELIEVES IN THE POTENTIAL OF BUSINESS TO BRING CHANGE TO CUBA I WOULD SAY THAT BENETTON'S ENTRANCE INTO CUBA IS LONGTERM AND NOT SHORTTERM THE SPOKESMAN SAID THE CURRENT CONDITION THAT THE STORE ONLY ACCEPTS HARD CURRENCY IS ONLY THE PRESENT AND NOT WHAT WE HAVE IN MIND FOR THE FUTURE BENETTON HAS PROVOKED DEBATE MANY TIMES BEFORE MOSTLY BECAUSE OF ITS ADVERTISEMENTS THAT SOMETIMES FOCUS AT LEAST AS MUCH ON RACIAL AND RELIGIOUS ISSUES AIDS AND OTHER WORLD PROBLEMS AS ON CLOTHES FOR THE PRESENT THE MAIN MARKET FOR THE CUBAN OUTLETS WILL BE FOREIGN TOURISTS THE HOPE IS THAT THEY CAN HELP STAVE OFF ECONOMIC COLLAPSE CAUSED BY CUBA'S LOSS OF SOVIET SUBSIDIES AND MARKETS CUBAN OFFICIALS SAY THE ISLAND WAS VISITED BY 424000 FOREIGN TOURISTS IN 1991 AND MORE THAN 500000 IN 1992 MOSTLY FROM EUROPE AND CANADA SOME ANALYSTS QUESTION THOSE NUMBERS HOWEVER SAYING THAT ONE HAVANABASED EUROPEAN HOTELIER SAID THE NUMBER OF TOURISTS IN THE FIRST HALF OF 1992 FELL 60 FROM A YEAR EARLIER BECAUSE OF WASHINGTON'S THREEDECADELONG ECONOMIC EMBARGO US TOURISTS AREN'T OFFICIALLY ALLOWED TO VISIT CUBA ALTHOUGH THEY CAN GET THERE VIA CANADA OR MEXICO BENETTON IS ALSO CONSIDERING OPENING A FACTORY TO PRODUCE SHOES AND TSHIRTS IN CUBA THROUGH A JOINT VENTURE WITH A STATE AGENCY THE DISCUSSIONS ARE STILL VERY PRELIMINARY AND THE FACTORY STAGE OF THE DEAL WOULD LIKELY HAPPEN FAR IN THE FUTURE MS POLLINI SAID SHE SAID BENETTON OPENED STORES TO TEST MARKETS IN THE FORMER SOVIET UNION AND EASTERN EUROPE DURING THE COMMUNIST ERA AND THE COMPANY HAD ITS STORES IN PLACE WHEN THOSE REGIMES COLLAPSED OUR STRATEGY IS TO GO INTO AS MANY MARKETS AS POSSIBLE REGARDLESS OF THE POLITICAL SITUATION SHE SAID CUBA REPRESENTS A MARKET WITH POTENTIAL LIKE THE OTHERS MOREOVER BENETTON DOESN'T CONSIDER THE CUBAN VENTURE A HIGHRISK ONE IT'S NOT LIKE WE'RE OPENING 3000 STORES MS POLLINI SAID IT'S ONLY A HANDFUL OF STORES WHICH WOULDN'T HAVE A RELEVANT FINANCIAL IMPACT ON THE COMPANY IT'S SAD FOR US THAT MOST CUBAN PEOPLE WON'T BE ABLE TO BUY OUR GOODS BUT IF YOU WAIT UNTIL EVERYTHING IN A DEVELOPING COUNTRY IS OK YOU'LL NEVER DO ANY BUSINESS 9301260108 930126 MARKETING & MEDIA NEW YORK POST WHITE KNIGHT HAS HISTORY OF LEGAL BATTLES REGULATORY CLASHES BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN STEVEN HOFFENBERG APPEARED LATE SUNDAY TO RESCUE THE NEW YORK POST FROM A CERTAIN DEATH HE WAS A MADETOORDER HERO MR HOFFENBERG CHAIRMAN OF TOWERS FINANCIAL CORP HAS STEPPED IN TO PROVIDE SHORTTERM FINANCING WITH AN EYE TOWARD GAINING CONTROL OF THE POST BUT THE TABLOID THAT HAS CHEATED DEATH SO MANY TIMES STILL SEEMS TO BE ON SHAKY GROUND ITS SALVATION FAR FROM GUARANTEED MR HOFFENBERG HAS COMPILED A LITANY OF UNSUCCESSFUL TAKEOVERS REGULATORY CLASHES LEGAL HASSLES OVER EVEN SMALL AMOUNTS OF MONEY AMID QUESTIONS OF HIS COMPANY'S OWN FINANCIAL STRENGTH ALTHOUGH HE PRESENTS HIMSELF AS A SOLID AND WELLFINANCED SUITOR MR HOFFENBERG HAS A HISTORY OF CONTINUING CLASHES IN THE COURTROOM AND WITH VARIOUS REGULATORS RAISING SERIOUS QUESTIONS OF WHETHER HE CAN LEAD A RESURRECTION OF THE POST THE WEAKEST OF NEW YORK'S THREE TABLOIDS THE POST WAS SAID BY SOME INDUSTRY OBSERVERS TO BE LOSING AS MUCH AS 250000 A WEEK DURING THE CHRISTMAS SEASON IT IS BADLY IN NEED OF A CAPITAL INFUSION PERHAPS 10 MILLION OR MORE IN THE COMING YEAR OWNER PETER KALIKOW SOUGHT NEW SOURCES OF FINANCING LAST WEEK AFTER THE PAPER'S BANKERS REFUSED TO EXTEND ITS LINE OF CREDIT BEYOND THE ALREADYUSED 6 MILLION ON SUNDAY NIGHT JUST 30 MINUTES BEFORE THE PAPER WAS TO ANNOUNCE IT WOULD SHUT DOWN MR KALIKOW UNVEILED MR HOFFENBERG AS THE PAPER'S WHITE KNIGHT IT IS A ROLE THAT MR HOFFENBERG LIKES TO PLAY A FEW YEARS AGO HE MADE LOUD PRONOUNCEMENTS ABOUT PLANS TO RESCUE PAN AMERICAN WORLD AIRWAYS A BID THAT NEVER WENT THROUGH IN 1987 TOWERS ENTERED THE INSURANCE FIELD BY TAKING OVER TWO DISTRESSED CHICAGOBASED INSURANCE COMPANIES WITH HOPES OF REVIVING THEM BUT THE STATE OF ILLINOIS' DIRECTOR OF INSURANCE IN A LAWSUIT ALLEGED THAT TOWERS STRIPPED THE COMPANIES OF THEIR ASSETS AND THUS CAUSED THE INSURERS' INSOLVENCY MR HOFFENBERG DENIED THE CHARGES AND REACHED AN OUTOFCOURT SETTLEMENT WITH THE STATE HE SAYS IN THE MEANTIME THE SECURITIES AND EXCHANGE COMMISSION FORCED HIM TO HALT THE SALE OF 34 MILLION IN UNREGISTERED SECURITIES THAT LED TO SEVERAL STATES INCLUDING TEXAS ALABAMA AND IOWA AMONG OTHERS BARRING TOWERS FROM SELLING UNREGISTERED SECURITIES IN THEIR STATES SOME RECENT CLIENTS OF TOWERS MOREOVER QUESTION THE COMPANY'S PRACTICES RICHARD PAYNE A FINANCIAL CONSULTANT CALLS TOWERS'S WORK UNPROFESSIONAL AND SAYS MR HOFFENBERG IS FULL OF BALONEY MR PAYNE HAD LINED UP TOWERS WHICH COLLECTS OTHER COMPANIES' DEBTS AND ACCOUNTS RECEIVABLES TO GUARANTEE A LOAN FOR A TEXASBASED DEVELOPER THEY DRAGGED THEIR FEET ON FOLLOWING THROUGH ON THE GUARANTEE AND WHEN THEY DID THEY WANTED TOO MUCH OF THE ACTION AND PROFITS MR PAYNE ALLEGES IN RESPONSE MR HOFFENBERG SAYS THE SPEED OF THE TRANSACTION WAS TYPICAL EVERYBODY WANTS A FAST DECISION HE SAYS AS FOR THE PROFIT FROM THE GUARANTEE HE SAYS PEOPLE SEEM TO THINK WE AREN'T IN THIS BUSINESS TO MAKE A PROFIT BUT WE ARE HE ADDS THAT TOWERS EXPECTS TO MAKE A PROFIT FROM RESTRUCTURING THE BALANCE SHEET OF THE POST THE POST IS A GOOD OPPORTUNITY FOR TOWERS HE SAYS IN AN INTERVIEW YESTERDAY MR HOFFENBERG DENIED THAT TOWERS IS EXPERIENCING ANY FINANCIAL PROBLEMS HE SAYS THE COMPANY MANAGES ABOUT 15 BILLION A YEAR IN ACCOUNTS RECEIVABLES BUT HE NOTES THAT TOWERS TERMINATED ABOUT 150 EMPLOYEES LAST QUARTER LARGELY THOSE THAT HE SAYS WEREN'T MEETING THEIR QUOTAS SET BY THE COMPANY TOWERS IS NOW REHIRING TO REPLACE THE EMPLOYEES MR HOFFENBERG SAYS HE ALSO SAYS THE SALARIES OF TOP EXECUTIVES AT TOWERS WERE SLASHED IN THE FOURTH QUARTER LAST YEAR BECAUSE THE COMPANY COULDN'T CONTINUE TO FORGIVE THE LACK OF BUSINESS BEING GENERATED BY THE TOP EXECUTIVES HE SAYS THEY ARE CONTINUING TO WORK AT THE LOWER SALARY RATES BUT EARLIER IN THE DAY MR HOFFENBERG 48 YEARS OLD SAID PAST PRESS ACCOUNTS OF THE COMPANY'S DEALINGS WERE OFTEN ERRONEOUS OR RADICALLY UNFAIR HE BRISTLED WHEN ASKED ABOUT PAST FAILED ACQUISITIONS SAYING HIS CONCERN WAS TO HELP SAVE THE POST HE SAID TOWERS IS IN NO FINANCIAL DIFFICULTY AND THAT SPECULATION OTHERWISE PROBABLY COMES FROM DISGRUNTLED EXECUTIVES WHO WERE ASKED TO LEAVE THE COMPANY MR HOFFENBERG ALSO SAID THAT WHILE HIS COMPANY WOULD EVENTUALLY END UP OWNING A PIECE OF EQUITY IN THE NEW POST IT WON'T LIKELY BE THE MAJORITY OWNER AND CREDITORS AND POSSIBLY EVEN UNIONS OF THE PAPER WOULD ALSO BE EQUITY HOLDERS THE ONLY REASON WE ENTERED INTO THE TRANSACTION WAS THAT THIS IS IN OUR AREA OF EXPERTISEACCOUNTS RECEIVABLE HE ADDED CITING ABOUT 8 MILLION IN LARGELY UNPAID ADVERTISER BILLS OWED TO THE PAPER A LENGTHY ROSTER OF RECENT COURT CASES ENTANGLING MR HOFFENBERG RAISES FURTHER QUESTIONS BASED ON A COMPUTER SEARCH THAT TURNED UP AT LEAST 17 CASES IN WHICH A JUDGMENT HAS BEEN ISSUED MR HOFFENBERG IS NO HIGHROLLER INDEED HE OFTEN HAS GONE TO COURT TO FIGHT OVER FINANCIAL CLAIMS THAT PALE IN COMPARISON TO WHAT IT WILL REQUIRE TO BREATHE NEW LIFE INTO THE AILING BIG APPLE TABLOID FOR EXAMPLE IN 1991 MR HOFFENBERG LOST IN FEDERAL APPEALS COURT IN HIS EFFORT TO AVOID PAYING DISPUTED CREDITCARD CHARGES OF LESS THAN 90000 RELATED TO A CORPORATE JET HE HAD LEASED FROM PHH GROUP INC MR HOFFENBERG'S COMPANY ALSO WAS SUED A FEW YEARS AGO BY ASSOCIATED DRY GOODS CORP OVER ABOUT 255000 IN BACK RENT THAT HE HAD REFUSED TO PAY BECAUSE OF A DISPUTE OVER ELECTRICAL WORK THAT HE HAD WANTED TO BE DONE THE CASE WAS SETTLED OF COURT TERMS WEREN'T DISCLOSED ANOTHER TOWERS ENTITY WENT TO COURT IN A FAILED BID TO FORCE A LENDER INTO HANDING OVER 14 MILLION FOR THE PURCHASE OF A 111FOOT YACHT THE MARCO POLO IN STILL ANOTHER CASE THE STATE OF ILLINOIS SEIZED THREE SMALL FINANCIAL COMPANIES THAT MR HOFFENBERG HAD PURCHASED SEVERAL YEARS AGO ONE KEY ASSET AT ISSUE IN THE LITIGATION AMOUNTED TO 35 MILLION OF CERTIFICATES OF DEPOSIT ACCORDING TO CASE SUMMARY AND IN AN EVEN SMALLER CASE A FORMER EMPLOYEE OF TOWERS FINANCIAL SUED CLAIMING HE WAS OWED ALMOST 70000 IN WAGES AND COMMISSIONS THE PLAINTIFF ENDED UP WINNING ALL OF 2980 9301260107 930126 DELL STOCK OFFERING DELAYED TO AWAIT 4THPERIOD RESULTS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP SAID A STOCK OFFERING EXPECTED TO BE COMPLETED A MONTH AGO WILL BE DELAYED UNTIL AFTER THE COMPANY ANNOUNCES ITS FOURTHQUARTER FINANCIAL RESULTS IN LATE FEBRUARY THE FOURMILLIONSHARE COMMON STOCK OFFERING HAS BEEN A FOCUS OF ANALYSTS' ATTENTION SINCE IT WAS ANNOUNCED IN MIDNOVEMBER WORD OF THE PROPOSED DEAL VALUED AT ABOUT 192 MILLION AT CURRENT DELL SHARE PRICES CAME ONLY DAYS BEFORE THE AUSTIN TEXAS PERSONAL COMPUTER COMPANY WAS BROADSIDED BY KIDDER PEABODY & CO ANALYST DAVID R KORUS IN AN UNUSUALLY CRITICAL REPORT ON THE COMPANY MR KORUS RAISED QUESTIONS ABOUT DELL'S FOREIGN CURRENCY TRADING OPERATIONS AND ITS ACCOUNTING OF CURRENCY LOSSES THOUGH DELL OFFICIALS STRENUOUSLY DENIED ANY IMPROPRIETY THE REPORT IMMEDIATELY POUNDED DELL'S STOCK AND RAISED QUESTIONS AMONG INSTITUTIONAL INVESTORS ABOUT THE POSSIBILITY OF FUTURE DELL SURPRISES THE OVERTHECOUNTER ISSUE WHICH DIPPED AS LOW AS 31 A SHARE IMMEDIATELY AFTER THE KIDDER REPORT HAS SINCE REBOUNDED STRONGLY IN A MARKET BULLISH ON TECHNOLOGY STOCKS YESTERDAY DELL STOCK CLOSED UP 175 TO 4850 A DELL SPOKESWOMAN SAID THE DECISION TO PUT OFF THE OFFERING INITIALLY EXPECTED TO CLOSE BY THE END OF 1992 IS UNRELATED TO THE CURRENCY ISSUE OR TO A SECURITIES AND EXCHANGE COMMISSION INQUIRY INTO THE MATTER RATHER THE COMPANY SAID IT DELAYED THE DEAL SO IT CAN INCLUDE ITS FOURTHQUARTER NUMBERS IN THE FINAL PROSPECTUS DELL'S FISCAL YEAR ENDS JAN 31 A PRUDENT INVESTOR WOULD WANT TO SEE THE FULLYEAR NUMBERS THE SPOKESWOMAN SAID DELL SAID IT WILL FILE AN INITIAL PROSPECTUS WITHIN A MATTER OF DAYS THEN WILL AMEND THAT DOCUMENT WHEN THE FIGURES ARE RELEASED MARKETING AND PRICING OF THE OFFERING WILL BE HELD OFF UNTIL AFTER THE NUMBERS ARE MADE PUBLIC IN ABOUT A MONTH ANALYSTS WHO ONCE INTERPRETED DELAYS IN THE OFFERING AS A SIGN OF POTENTIAL TROUBLE AT THE COMPANY NOW SAY THE DECISION TO INCLUDE THE LATEST FINANCIAL RESULTS COULD SIGNAL A STRONGERTHANEXPECTED SHOWING BY THE MAILORDER MARKETER IT LOOKS LIKE WHAT THEY'RE TELLING PEOPLE IS THAT THEY'RE GOING TO HAVE A GOOD QUARTER SAID WALTER J WINNITZKI AN ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK A LOT OF PEOPLE HAVE ACCEPTED THE VIEWPOINT THAT THE COMPANY DID DO SOMETHING RISKY WITH ITS FOREIGNEXCHANGE DEALINGS BUT THAT SEEMS TO BE HISTORY NOW ANALYSTS EXPECT DELL TO REPORT FOURTHQUARTER EARNINGS OF ABOUT 76 CENTS A SHARE COMPARED WITH 62 CENTS A YEAR EARLIER 9301260106 930126 ULTIMATE CORP DROPS COOPERS & LYBRAND AS AUDITOR IN DISPUTE EAST HANOVER NJ ULTIMATE CORP SAID IT HAS REPLACED COOPERS & LYBRAND AS ITS INDEPENDENT AUDITORS IN A DISAGREEMENT OVER FEES OWED THE ACCOUNTING FIRM HOWEVER COOPERS & LYBRAND SAYS THE DISPUTE GOES BEYOND FEES THE COMPUTER SYSTEMS CONCERN SETTLED FOR A REDUCED AMOUNT OF WHAT COOPERS & LYBRAND CLAIMED THEY WERE OWED IN FEES A SPOKESWOMAN SAID THERE WAS NO DISAGREEMENT REGARDING ACCOUNTING POLICY OR PROCEDURE THE SPOKESWOMAN WOULDN'T DISCLOSE THE AMOUNT INVOLVED ULTIMATE SAID IT HAS HIRED ARTHUR ANDERSEN & CO AS ITS NEW AUDITORS HOWEVER HARRIS AMHOWITZ DEPUTY CHAIRMAN AND GENERAL COUNSEL FOR COOPERS & LYBRAND NEW YORK SAID THERE WERE SUBSTANTIVE DISAGREEMENTS WITH THE COMPANY HE DECLINED TO ELABORATE ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING IN NOVEMBER BY ULTIMATE COOPERS HAD POINTED OUT WHAT IT CALLED SIGNIFICANT DEFICIENCIES IN ULTIMATE'S INTERNAL FINANCIAL CONTROLS WHICH COULD ADVERSELY AFFECT THE COMPANY'S ABILITY TO RECORD FINANCES ACCURATELY BASED ON COOPERS & LYBRAND'S RECOMMENDATIONS ULTIMATE CORRECTED THE INTERNALCONTROL WEAKNESSES DURING ITS FISCAL YEAR ENDED APRIL 30 BASED ON A SIMILAR RECOMMENDATION ULTIMATE INSTITUTED A CONFLICTOFINTEREST POLICY IN JULY FOLLOWING COOPERS'S AUDIT OF ITS FISCAL 1992 BOOKS ULTIMATE ALSO NOTED IN THE NOVEMBER FILING THAT IT HAD DIFFERENCES OF OPINION WITH COOPERS REGARDING THE SCOPE OF AN INTERNAL INVESTIGATION INITIATED ON THE BASIS OF CERTAIN ALLEGATIONS MADE TO THE COMPANY AND THE AUDITORS BY SOMEONE UNAFFILIATED WITH ULTIMATE MANAGEMENT AGREED TO EXPAND THE SCOPE OF THE INVESTIGATION AT COOPERS'S URGING AND THAT INVESTIGATION HAS BEEN COMPLETED ULTIMATE SAID THE FILING DIDN'T ELABORATE ULTIMATE HAD SAID IT WOULD TAKE A CHARGE OF 4 MILLION IN ITS THIRD QUARTER ENDING JAN 31 IN ADDITION TO AN 118 MILLION CHARGE AS IT STRUGGLES TO RESTRUCTURE ITS DEBT 9301260105 930126 INTERNATIONAL CHILE'S STOCKS SOAR ON PLAN TO EASE CAPITALMART RULES BY IMOGEN MARK SPECIAL TO THE WALL STREET JOURNAL SANTIAGO CHILE THE GOVERNMENT GAVE A BOOST TO CHILE'S STOCK MARKET BY PROPOSING TO LIBERALIZE CAPITALMARKETS REGULATIONS TO HELP FUND THE COUNTRY'S RAPID GROWTH SHARE PRICES IN SANTIAGO SWELLED 25 ON THE NEWS YESTERDAY THE MEASURES IN A DRAFT BILL SENT TO CONGRESS WOULD WIDEN INVESTMENT OPPORTUNITIES FOR THE COUNTRY'S PRIVATE PENSION FUNDS AND ASSOCIATED LIFE INSURANCE COMPANIES WHICH MANAGE ABOUT 15 BILLION IN SAVINGS WE'RE MAKING THE MARKET MORE FLEXIBLE FINANCE MINISTER ALEJANDRO FOXLEY SAID UNDER THE NEW REGULATIONS CHILE'S BIG INSTITUTIONAL INVESTORS WILL BE ABLE TO INVEST IN A BROADER RANGE OF COMPANIES AND ENTER INTO THE FIELD OF PROJECT FINANCING THEY ALSO WILL BE ALLOWED TO INVEST IN FOREIGN STOCKS AND CORPORATE DEBT INSTEAD OF BEING LIMITED TO GOVERNMENT TREASURY BILLS AND THEY CAN INVEST IN A RANGE OF NEW DOMESTIC INSTRUMENTS SUCH AS MORTGAGEBACKED SECURITIES THE NEW MEASURES ARE AN EFFORT BY CHILE'S GOVERNMENT TO ADDRESS LONGHELD COMPLAINTS BY LOCAL INSTITUTIONAL INVESTORS THAT THEY ARE RESTRICTED BY THE GOVERNMENT IN THEIR INVESTMENT OPPORTUNITIES BUT WITH CHILE'S ECONOMY GROWING AT A 97 PACE LAST YEAR AND THE GOVERNMENT FACING PRESSURES TO INCREASE ITS INVESTMENTS IN SOCIAL WELFARE THE MEASURES ALSO SEEMED DESIGNED TO CHANNEL PRIVATESECTOR FUNDS INTO INFRASTRUCTURE AND HOUSING CHILE TOOK A PIONEERING STEP IN LATIN AMERICA IN 1981 BY SETTING UP PRIVATE RETIREMENT FUNDS AND REQUIRING WORKERS TO INVEST AT LEAST 10 OF THEIR EARNINGS IN THEM THE MOVE MADE THE PENSION FUNDS CHILE'S LARGEST INSTITUTIONAL INVESTOR AND ENABLED THEM TO PLAY A LEADING ROLE IN THE COUNTRY'S PRIVATIZATION PROGRAM IF APPROVED THE NEW MEASURES WOULD MAKE CHILE'S RAPIDLY GROWING STOCK MARKET MORE LIQUID PENSION FUNDS NOW CAN INVEST IN ONLY 40 OF THE 260 COMPANIES LISTED ON SANTIAGO'S EXCHANGE AND 50 OF THEIR INVESTMENTS ARE CONCENTRATED IN EIGHT COMPANIES WITH THE NEW MEASURES THE NUMBER OF COMPANIES IN WHICH THEY INVEST COULD EASILY DOUBLE ANALYSTS SAY 9301260104 930126 MARKETING & MEDIA WALT DISNEY POSTS 25 PROFIT GAIN RAISES ITS DIVIDEND BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO POSTED A 25 INCREASE IN NET INCOME FOR ITS FIRST QUARTER ENDED DEC 31 TO 2603 MILLION OR 48 CENTS A SHARE AND BOOSTED ITS QUARTERLY DIVIDEND TO 625 CENTS A SHARE FROM 525 CENTS BUT EURO DISNEY CONTINUES TO PROVE A THORN IN THE COMPANY'S SIDE WITH DISNEY LOSING 43 MILLION IN THE QUARTER ON THE FRENCH THEME PARK AND RESORT THE LOSS REFLECTS DISNEY'S SHARE OF THE QUARTERLY LOSS OF EURO DISNEY SCA PARTIALLY OFFSET BY ROYALTIES AND OTHER INCOME EURO DISNEY DELAYED POSTING ITS EARNINGS UNTIL PRIOR TO THE OPENING OF TRADING ON THE PARIS BOURSE TODAY BUT GIVEN THAT DISNEY HOLDS A 49 STAKE IN THE EUROPEAN COMPANY IT WOULD SEEM THAT EURO DISNEY HAD A LOSS OF NEARLY 90 MILLION IN THE QUARTER THAT FAR EXCEEDS THE ROUGHLY 35 MILLION LOSS EURO DISNEY POSTED FOR THE FISCAL YEAR ENDED LAST SEPT 30 DISNEY ANNOUNCED ITS EARNINGS AND THE DIVIDEND INCREASE AFTER THE CLOSE OF BIG BOARD TRADING YESTERDAY IN WHICH ITS SHARES FELL 875 CENTS TO 43375 THE HIGHER DIVIDEND IS PAYABLE MAY 20 TO SHAREHOLDERS OF RECORD APRIL 12 THE COMPANY LAST BOOSTED ITS QUARTERLY DIVIDEND A YEAR AGO FROM 4375 CENTS AFTER THE EFFECT OF A SUBSEQUENT FOURFORONE STOCK SPLIT THE EURO DISNEY LOSS DIDN'T DO MUCH DAMAGE TO DISNEY'S FINANCIALS HOWEVER WHICH WERE BOLSTERED BY THE BOX OFFICE STRENGTH OF ITS ANIMATED FILM ALADDIN AND RECORD HOME VIDEO SALES OF BEAUTY AND THE BEAST REVENUE FOR THE QUARTER ROSE 25 TO 239 BILLION IN THE YEAREARLIER FIRST QUARTER DISNEY HAD NET OF 2081 MILLION OR 39 CENTS A SHARE ON REVENUE OF 192 BILLION REVENUE FROM FILMED ENTERTAINMENT ROSE TO 121 BILLION FROM 9658 MILLION AND OPERATING INCOME TO 2357 MILLION FROM 1668 MILLION IN PART ON TICKET SALES FOR ALADDIN WHICH SURPASSED BEAUTY AND THE BEAST THIS PAST WEEKEND TO BECOME THE BIGGEST GROSSING ANIMATED FILM OF ALL TIME WITH A BOX OFFICE TOTAL OF 1479 MILLION REVENUE FROM DISNEY'S DOMESTIC THEME PARKS AND RESORTS ROSE TO 745 MILLION FROM 6421 MILLION FOR THE QUARTER AND OPERATING INCOME INCREASED TO 1429 MILLION FROM 928 MILLION 9301260103 930126 BANKERS TRUST NET INCOME ROSE 24 IN FOURTH QUARTER BELOW EXPECTATIONS NEW YORK BANKERS TRUST NEW YORK CORP SAID FOURTHQUARTER NET INCOME ROSE 24 BUT THAT WAS A BIT BELOW EXPECTATIONS AND ACCOMPANIED BY A STEEP 51 DROP IN REVENUE FROM TRADING OPERATIONS AS A RESULT SHARES OF THE BANK HOLDING COMPANY FELL 1125 TO 66625 IN LATE NEW YORK STOCK EXCHANGE TRADING BANKERS TRUST SAID THAT NET ROSE TO 170 MILLION OR 197 A SHARE SLIGHTLY BELOW ANALYSTS' ESTIMATES OF ABOUT 201 A SHARE THE NEW YORK COMPANY HAD NET OF 137 MILLION OR 157 A SHARE A YEAR EARLIER THE NATION'S SEVENTHLARGEST BANK COMPANY SAID THAT PROFIT GROWTH WAS FUELED BY STRONG NET INTEREST REVENUE FROM LOANS AND OTHER ASSETS A DECLINE IN PROBLEM LOANS AND INCREASES IN FEES EARNINGS ALSO WERE HELPED BY GAINS FROM BACK INTEREST PAID BY BRAZIL THE BANK'S PROFIT HOWEVER FELL BELOW EXPECTATIONS AS TRADING REVENUE FELL SHARPLY TO 101 MILLION FROM 207 MILLION ATTRIBUTABLE TO LOSSES ON TRADING OF DEVELOPINGCOUNTRY DEBT AND A SEASONALLY SLOW PERIOD THE YEAR'S END IS OFTEN SLOW FOR TRADING OF DERIVATIVE SECURITIES WHICH ARE FINANCIAL INSTRUMENTS USED TO HELP CORPORATE CUSTOMERS HEDGE OR AVOID RISKS IN INTEREST RATES FOREIGN CURRENCIES OR COMMODITIES NONINTEREST EXPENSES ROSE 23 FUELED PARTLY BY A 6 RISE IN THE AVERAGE NUMBER OF EMPLOYEES HIGHER SALARY AND BENEFIT EXPENSES AND NEW INVESTMENTS IN TECHNOLOGY BANKERS TRUST MANAGING DIRECTOR TIMOTHY YATES TOLD ANALYSTS IN A CONFERENCE CALL THAT THE BANK WOULD TOLERATE FASTER EXPENSE GROWTH THAN REVENUE GROWTH OVER THE NEXT YEAR OR SO TO MAKE ADDITIONAL INVESTMENTS BUT HE ADDED THE BANK'S EXPENSE PLAN FOR 1993 ISN'T COMPLETED YET BANKERS TRUST SURPASSED SOME ANALYSTS' EXPECTATIONS AS IT REPORTED A 133 RISE IN FULLY TAXABLE NET INTEREST REVENUE TO 412 MILLION FROM 177 MILLION A YEAR EARLIER THE COMPANY SAID ITS DROP IN TRADING REVENUE WAS MORE THAN OFFSET BY TRADINGRELATED INTEREST GENERATED BY GOVERNMENT SECURITIES POSITIONS USED IN INTEREST RATE AND CURRENCY ARBITRAGE ACTIVITIES AND AS HEDGES OF DERIVATIVE PRODUCTS AND FOREIGN CURRENCY TRADING POSITIONS EXCLUDING 60 MILLION OF INTEREST RECOGNIZED ON NONACCRUAL BRAZILIAN ASSETS FULLY TAXABLE NET INTEREST REVENUE INCREASED BY 175 MILLION DURING THE QUARTER THE LOANLOSS PROVISION ROSE TO 50 MILLION FROM 45 MILLION IN THE THIRD QUARTER BUT FELL FROM 75 MILLION IN THE YEAREARLIER PERIOD TOTAL ALLOWANCES FOR CREDIT LOSSES DECLINED TO 16 BILLION AS OF DEC 31 FROM 18 BILLION A YEAR EARLIER FOR THE YEAR BANKERS TRUST SAID THAT NET ROSE 14 TO A RECORD 761 MILLION OR 882 A SHARE FROM 667 MILLION OR 775 A SHARE IN 1991 FOR THE YEAR THE LOANLOSS PROVISION FELL TO 225 MILLION FROM 238 MILLION 9301260102 930126 WAKEFIELD FINANCIAL'S FORMER PRESIDENT GETS PRISON TERM FOR FRAUD NEW YORK ALEXANDER MINELLA FORMER PRESIDENT OF WAKEFIELD FINANCIAL CORP RECEIVED A SENTENCE OF TWO TO SIX YEARS IN PRISON FOR HIS ROLE IN AN OVERTHECOUNTER STOCKRIGGING SCHEME ACTING STATE SUPREME COURT JUSTICE JOHN AK BRADLEY ALSO ORDERED WAKEFIELD FINANCIAL NEW YORK TO PAY RESTITUTION OF 200000 TO VICTIMS OF THE SCHEME MANHATTAN DISTRICT ATTORNEY ROBERT M MORGENTHAU SAID THE FIRM AND MR MINELLA DEFRAUDED THOUSANDS OF INVESTORS OF MILLIONS OF DOLLARS BY DELIBERATELY SETTING ARTIFICIAL TRADING PRICES IN A SCHEME THAT OPERATED FROM SEPTEMBER 1987 TO FEBRUARY 1990 AMONG THE STOCKS INVOLVED WERE SHARES OF WEAVER ARMS CORP THE 32YEAROLD MR MINELLA OF BREWSTER NY PLEADED GUILTY OCT 13 TO GRAND LARCENY IN THE SECOND DEGREE CRIMINAL POSSESSION OF STOLEN PROPERTY IN THE SECOND DEGREE AND FELONY VIOLATION OF THE NEW YORK STATE GENERAL BUSINESS LAWS WAKEFIELD FINANCIAL ALSO ENTERED A PLEA OF GUILTY TO ENTERPRISE CORRUPTION 9301260101 930126 UNITED MINE WORKERS COAL PRODUCER GROUP EXTEND LABOR CONTRACT A WALL STREET JOURNAL NEWS ROUNDUP THE UNITED MINE WORKERS AND AN ALLIANCE OF FOUR COAL PRODUCERS SAID THEY EXTENDED CURRENT LABOR AGREEMENTS FOR 60 DAYS PAST THE FEB 1 EXPIRATION IN A BID TO WRAP UP A NEW CONTRACT BUT THE EXTENSION DOESN'T APPLY TO NEGOTIATIONS WITH A BIGGER INDUSTRY GROUP THE BITUMINOUS COAL OPERATORS ASSOCIATION A UMW SPOKESMAN SAID HE HAD NO NEWS ON THOSE TALKS THE BCOA DECLINED TO COMMENT THE UMW AND BCOA HAD NO TALKS SCHEDULED EARLIER THIS MONTH THOUGH NEGOTIATIONS TECHNICALLY WERE CONTINUING MEANWHILE DISCUSSIONS WITH THE SMALLER INDUSTRY GROUP THE INDEPENDENT BITUMINOUS COAL BARGAINING ALLIANCE SEEM ON TRACK FOR AN AGREEMENT THE SPLINTER GROUP CONSIDERED MORE SYMPATHETIC TO THE UNION COMPRISES DRUMMOND CO JIM WALTER RESOURCES INC WESTMORELAND COAL CO AND US STEEL MINING CO A UNIT OF USX CORP SINCE THE TWO SIDES ARE EXAMINING ISSUES THAT HAVE NEVER BEEN ADDRESSED BEFORE THESE NEGOTIATIONS ARE TAKING A LITTLE LONGER TO COMPLETE UMW PRESIDENT RICHARD TRUMKA SAID IN A STATEMENT 9301260099 930126 INTERNATIONAL JAPAN TRADE OFFICIAL URGES RETALIATION IF US REVIVES LAW REQUIRING SANCTIONS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A TOP JAPANESE TRADE OFFICIAL PUTTING THE CLINTON ADMINISTRATION ON NOTICE SAID JAPAN SHOULD TAKE RETALIATORY ACTION IF THE NEW PRESIDENT IS TOO TOUGH ON TRADE ISSUES SOZABURO OKAMATSU DIRECTORGENERAL OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY'S INTERNATIONAL TRADE POLICY BUREAU TOLD REPORTERS THAT JAPAN IS CONCERNED ABOUT THE US REVIVING ITS SUPER 301 TRADE STATUTE THE MEASURE WHICH HAS EXPIRED REQUIRED THE PRESIDENT TO SLAP PENALTIES ON FOREIGN COUNTRIES THAT DON'T REMOVE SPECIFIC TRADE BARRIERS AS DEFINED BY THE US MANY ADMINISTRATION OFFICIALS AND LEADING CONGRESSIONAL DEMOCRATS SUPPORT RESTORING THE LAW WHICH WAS INVOKED AGAINST JAPAN IN 1989 AND HEIGHTENED TENSIONS BETWEEN THE TWO ECONOMIC SUPERPOWERS AT THE TIME JAPAN COMPLAINED ABOUT BEING SINGLED OUT BY SUPER 301 BUT CAVED IN TO BUSH ADMINISTRATION DEMANDS BEFORE FINES WERE IMPOSED IN THE FUTURE MR OKAMATSU SAID IF THEY TAKE ACTION BASED ON SUPER 301 THAT WILL INVITE RETALIATION MR OKAMATSU REFUSED TO DEFINE FURTHER WHAT FORM RETALIATION WOULD TAKE OR UNDER WHAT CIRCUMSTANCES JAPAN WOULD ACT AIDES SAID JAPAN WOULD LIKELY APPEAL ANY UNILATERAL US ACTION TO A MULTILATERAL FORUM THEY EMPHASIZED THAT JAPAN WOULD ONLY INVOKE RETALIATORY TARIFFS OR QUOTAS ON US PRODUCTS IN ACCORDANCE WITH THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR OKAMATSU'S REMARKS WERE THE LATEST EXAMPLE OF SABERRATTLING BY JAPANESE OFFICIALS WHO WORRY THAT THE ADMINISTRATION WILL TAKE A HARDER LINE ON TRADE A RECENT FOREIGN MINISTRYSPONSORED REPORT SUGGESTED THAT JAPAN SHOULD DRAFT A LAW MAKING IT EASIER TO RESPOND TO UNILATERAL US TRADE THREATS OF COURSE JAPAN DOESN'T YET KNOW WHAT PRESIDENT CLINTON'S TRADE POLICY IS AND THAT ITSELF IS A SOURCE OF FRUSTRATION MR OKAMATSU COMPLAINED THAT MANY CRUCIAL MIDLEVEL POLICY JOBS IN THE NEW ADMINISTRATION AREN'T YET FILLED I WANT TO GO TO THE US TO DISCUSS TRADE WITH MY COUNTERPART BUT THERE IS NO COUNTERPART HE SAID MEANWHILE US BUSINESS IS STEPPING UP PRESSURE ON THE CLINTON ADMINISTRATION TO TAKE MORE ACTION AGAINST JAPAN THE AMERICAN CHAMBER OF COMMERCE IN JAPAN RELEASED A REPORT ON USJAPAN TRADE ITS FIRST IN THREE YEARS THAT CRITICIZED JAPANESE PRACTICES IN 29 SPECIFIC SECTORS RANGING FROM CARS TO LEGAL SERVICES AND FIVE GENERAL AREAS SUCH AS DISTRIBUTION AND GOVERNMENT PROCUREMENT MANY OF THE ISSUES WERE IN THE CHAMBER'S LAST REPORT AND HAVE YET TO BE RESOLVED TO THE SATISFACTION OF THE US BUSINESS COMMUNITY WE STILL HAVE A LONG WAY TO GO IN OPENING THE JAPANESE MARKET RICHARD J JOHANNESSEN JR THE CHAMBER'S PRESIDENT SAID AT A NEWS CONFERENCE YEARS OF PROTECTION OF THE DOMESTIC MARKET COUPLED WITH EXPORTDRIVEN STRATEGIES HAVE SHAPED A BUSINESS ENVIRONMENT UNFAVORABLE TO FOREIGN FIRMS THE REPORT CONCLUDES 9301260098 930126 AMERICAN EXPRESS REPORTS LOWER NET OF 82 MILLION FOR THE FOURTH QUARTER BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO REPORTED DISAPPOINTING FOURTHQUARTER EARNINGS HURT BY CONTINUED WEAK RESULTS AT ITS CORE CHARGE CARD BUSINESS AND A SURPRISING LOSS FOR SHEARSON LEHMAN BROTHERS INC EARNINGS OF 82 MILLION OR 15 CENTS A SHARE WERE DOWN 65 FROM THE YEAREARLIER PROFIT OF 237 MILLION OR 47 CENTS A SHARE MANY ON WALL STREET WERE LOOKING FOR THE FINANCIAL SERVICES CONCERN TO HAVE EARNINGS OF ABOUT 50 CENTS A SHARE FOR THE FULL YEAR IT EARNED 461 MILLION OR 88 CENTS A SHARE DOWN 416 FROM 1991'S RESULTS BUT AMERICAN EXPRESS IS APPARENTLY STILL BEING HURT BY COMPETITION IN THE CHARGE AND CREDIT CARD INDUSTRY REVENUE SLID 2 IN THE QUARTER AND TOTAL CHARGE CARDS IN FORCE FELL 51 THERE WAS SOME POSITIVE SIGNS HOWEVER TOTAL BILLINGS ROSE A SLIGHT 27 TO 313 BILLION AND THE NUMBER OF SERVICE ESTABLISHMENTS ACCEPTING THE AMERICAN EXPRESS CARD ROSE 45 TO 34 MILLION BOTH THOSE AREAS HAVE BEEN THE COMPANY'S TOP PRIORITIES THAT'S HEALTHY THEY NEEDED TO DO THAT FIVE YEARS AGO SAID JOHN KEEFE AN INDEPENDENT SECURITIES ANALYST THE EARNINGS RELEASE WAS ECLIPSED YESTERDAY BY THE ANNOUNCEMENT THAT HARVEY GOLUB WAS NAMED CHIEF EXECUTIVE OFFICER FOR WALL STREET THE IMPORTANCE WAS THE MANAGEMENT CHANGES SAID MR KEEFE WALL STREET FEELS PRETTY GOOD ABOUT HIM SHEARSON WAS THE OTHER PROBLEM REPORTING A FOURTHQUARTER LOSS OF 166 MILLION DOWN FROM PROFIT OF 130 MILLION IN THE YEAREARLIER QUARTER THE COMPANY ATTRIBUTED THE LOSS TO CHARGES FOR LEGAL COSTS AND A WRITEDOWN OF CERTAIN REAL ESTATE INVESTMENTS WHICH TOGETHER TOTALED 166 MILLION THE LOSS IS BELIEVED TO BE RELATED TO THE BALCOR CO DIVISION WHICH SOLD REAL ESTATE LIMITED PARTNERSHIPS IN THE 1980S THE PARENT ALSO RECAPITALIZED THE COMPANY WITH A 175 MILLION CAPITAL INJECTION HELPING THE RESULTS WERE STRONG EARNINGS FROM IDS FINANCIAL SERVICES AND FIRST DATA CORP AS WELL AS A TURNAROUND AT AMERICAN EXPRESS BANK JAMES D ROBINSON III THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT WE'RE PARTICULARLY PLEASED WITH THE PERFORMANCE OF IDS AND FIRST DATA CORP AND ENCOURAGED BY THE PROGRESS TRS IS MAKING IN BUILDING THE AMERICAN EXPRESS BRAND FRANCHISE THE RESULTS WERE ANNOUNCED AFTER THE STOCK MARKET CLOSED IN NEW YORK STOCK EXCHANGE TRADING SHARES OF AMERICAN EXPRESS CLOSED AT 25125 UP 125 CENTS 9301260097 930126 NORTH AMERICAN NATIONAL CORP COLUMBUS OHIO NORTH AMERICAN NATIONAL CORP SAID ITS PANWESTERN LIFE INSURANCE CO UNIT HAS RECEIVED APPROVAL FROM INSURANCE REGULATORY AUTHORITIES IN COLORADO AND OHIO FOR ITS PROPOSED ACQUISITION OF HOWARD LIFE INSURANCE CO DENVER COLO TERMS OF THE PROPOSAL WERE NOT DISCLOSED HOWARD LIFE HAS ASSETS OF ABOUT 34 MILLION AND OVER 11 MILLION IN ANNUAL REVENUE FROM PREMIUMS THE PURCHASE WILL APPROXIMATELY DOUBLE THE SIZE OF NORTH AMERICAN NATIONAL NORTH AMERICAN NATIONAL AN INSURANCE HOLDING COMPANY SAID THE ACQUISITION REMAINS SUBJECT TO CERTAIN CONTINGENCIES HOWEVER IT EXPECTS THE TRANSACTION TO BE COMPLETED IN FEBRUARY 9301260096 930126 LEISURE & ARTS WITH CIGARS AND A CLUB HE CATERS TO THE POWER CROWD BY STEVE GLAIN HONG KONG COME JOIN DAVID TANG IN HIS CRUSADE AGAINST THE BANAL THE UTILITARIAN THE BOURGEOIS PAUSE TO ADMIRE HIS VAST COLLECTION OF CHINESE PAINTINGS SAVOR A RARE CUBAN CIGAR FOR 25 AT HIS NEW TOBACCO EMPORIUM DROP BY HIS CLUB DURING OFFICE HOURS TO SIP AN ESPRESSO AND LISTEN TO A MASTER PIANIST PLAY AN ANTIQUE BOSENDORFER MR TANG IS A MAN WITH A MISSION AND HE IS NOT SHY ABOUT IT THIS INVESTMENT MANAGER LAWYER AND FORMER COLLEGE LECTURER IS WAGERING THAT HONG KONG WILL CONTINUE AS AN UNFETTERED CENTER OF CAPITALISM AFTER IT IS REABSORBED BY CHINA IN 1997 HE BELIEVES THAT THE COLONY WILL EVOLVE INTO AN EVEN MORE COSMOPOLITAN SOPHISTICATED AND ROMANTIC CITY SUCH A PLACE MR TANG FERVENTLY INSISTS WILL REQUIRE AN AMPLE SUPPLY OF GREAT CIGARS PUTTING HIS MONEY LITERALLY WHERE HIS MOUTH IS MR TANG LAUNCHED PACIFIC CIGAR CO WHICH OWNS THE EXCLUSIVE RIGHTS TO DISTRIBUTE CUBAN CIGARS IN ASIA THE HEADQUARTERS OF THE 6 MILLION VENTURE IS A 200SQUAREFOOT ESTABLISHMENT CALLED THE COHIBA CIGAR DIVAN IN THE LOBBY OF THE SWANK MANDARIN HOTEL BECAUSE THE US FORBIDS THE IMPORT OF CUBANMADE GOODS AND BECAUSE OF ITS EVERDWINDLING TOLERANCE FOR SMOKE AND SMOKERS IT'S EASIER TO COMMIT INCEST IN AMERICA THAN SMOKE A CIGAR THERE MR TANG HAS SET OUT TO MAKE ASIA THE WORLD'S LARGEST MARKET FOR CUBAN CIGARS VISITORS TO HIS DIVAN ARE WELCOME TO SAMPLE THE STOGIES AND SIP A MOJITO A CUBAN DRINK OF RUM MINT TEA AND LEMON JUICE IN WHAT APPEARS TO BE A PREREVOLUTIONARY HAVANA SALON THE LAMP SHADES AND VAULTED CEILING ARE HANDPAINTED WITH LATIN VIGNETTES ALTERNATING WITH PHOTOGRAPHS OF THE SLAIN CUBAN NATIONALIST CHE GUEVARA AND OF COURSE FIDEL CASTRO MOORISH TILES COVER THE FLOORS WOODEN CIGAR BOXES ARE STACKED NEARLY TO THE CEILING SPECIAL BUTANE LIGHTERS THAT LOOK LIKE MINIATURE BLOWTORCHES PERCH ON ANTIQUE LAMP STANDS FOR ALL ITS STAGEY ELEGANCE THE COHIBA CIGAR DIVAN IS BUT AN OUTPOST OF MR TANG'S MORE AMBITIOUS STRONGHOLD THE CHINA CLUB THIS GLAMOROUS WATERING HOLE WHICH COST 6 MILLION TO CREATE OCCUPIES THE TOP THREE FLOORS OF THE OLD BANK OF CHINA BUILDING IN THE CENTRAL BUSINESS DISTRICT HERE THE BUILDING'S ARTDECO MOTIF MATCHES THE CLUB'S THEME PREREVOLUTIONARY SHANGHAI IT CATERS TO ALL KINDS OF VIPS INCLUDING TYCOONS AND COLONIAL OFFICIALS THE CLUB'S MAIN ATTRACTION ISN'T THE PEOPLE HOWEVER IT'S THE VAST ASSEMBLY OF PAINTINGS AND ANTIQUE FURNITURE EXPLAINS MR TANG WHOSE WARDROBE DOESN'T QUITE MATCH HIS ELEGANT SURROUNDINGS HE WEARS A FRUMPY SINGLEBREASTED DARK BLUE SUIT THAT BICKERS WITH THE ROYAL BLUE SILK HANDKERCHIEF ERUPTING FROM HIS BREAST POCKET HIS BROWNSUEDE LOAFERS HAVE IMITATION GOLD BUCKLES AND ANTISKID TIPS ON THE SOLES AS HE TALKS HE TALKS CONSTANTLY MR TANG ASSUMES SEVERAL LANGUID POSITIONS IN AN ARTDECO EASY CHAIR RIGHT LEG OVER ARMREST LEFT ARM CROOKED OVER HEAD TORSO UPRIGHT LEFT ARM DANGLING OVER ARMREST FEET SPREAD APART EXTENDED BOTH ARMS OVER ARMRESTS GESTURING WITH CIGAR IN HAND HIS CHAIR ONE OF DOZENS BROUGHT IN FROM LONDON AND RELINED IN YELLOW OR RED HAS FLARED ARMRESTS THAT RESEMBLE THE FENDERS OF A 1930 DUSENBERG SOME OF THE ARTDECO LIGHT FIXTURES WERE PURCHASED ABROAD SOME WERE REPRODUCED IN HONG KONG COFFEE SERVERS WITH SILVERPLATED HOLDERS AND DETAILED GLASSES DESIGNED BY MR TANG HIMSELF WERE ORDERED IN BULK FROM A SMALL SHOP UNDER A BRIDGE AT THE RAILWAY STATION IN OSAKA JAPAN BRASS GENERAL ELECTRIC FANS MADE IN THE US WERE ACQUIRED FROM ANTIQUE BAZAARS THROUGHOUT ASIA MR TANG COLLECTED EVERYTHING IN SIX MONTHS DURING HIS BUSINESS TRAVELS WHICH HE SAYS ADD UP TO ABOUT A HALFMILLION MILES A YEAR I BECAME QUITE OBSESSED WITH IT ALL HE CONCEDES AFTER I'D HAVE A MEETING SOMEWHERE I'D GO SHOPPING AT LUNCH ON ANY GIVEN DAY HONG KONG'S ALLPOWERFUL CONVERGE ON THE CLUB TO DECIDE THE FATE OF THIS COMPANY AND THAT PUBLIC WORKS PROJECT ALL OVER DUMPLINGS AND SHARK'S FIN SOUP OVER THERE IS SIMON MURRAY THE DIMINUTIVE BUT IRREPRESSIBLE FORMER FOREIGN LEGIONNAIRE WHO RUNS HUTCHISON WHAMPOA LTD A VAST HOLDING COMPANY CONTROLLED BY BILLIONAIRE LI KASHING IN A BOOTH IS ZHAU NAN DIRECTOR OF THE XINHUA NEWS AGENCY CHINA'S DE FACTO EMBASSY IN THE COLONY DOWNSTAIRS THERE'S A COCKTAIL RECEPTION FOR FORMER BRITISH PRIME MINISTER SIR EDWARD HEATH THE GUEST OF A LOCAL CHINA CONSULTANCY I WANT THIS PLACE TO BE A SECOND HOME FOR THE MEMBERS MR TANG SAYS RELIGHTING HIS DUNHILL CABINETTA THERE ARE ONLY 100 BOXES LEFT IN THE WORLD HE ANNOUNCES AND HE BOUGHT THEM ALL DURING A TRIP TO HAVANA IN MARCH I DON'T WANT A BOARD OF DIRECTORS FILLED WITH IMPORTANT PEOPLE NONE OF WHOM EVER COME MR TANG LEAVES NOTHING TO CHANCE AT HIS CLUB THE CLUB'S LOGO A GOLD STAR COVERING A RED STAR IS CERTAINLY NO ACCIDENT MR TANG INSISTS THAT THE COLORS REPRESENT CHINA'S IMPERIAL PAST AND COMMUNIST PRESENT AND NOT THE PURSUIT OF WEALTH THAT THREATENS TO ECLIPSE COMMUNISM ON THE MAINLAND BUT WHATEVER ELSE THE LOGO CERTAINLY REFLECTS MR TANG'S SIGNATURE FLAMBOYANCE WHEN YOU'RE DESIGNING A CLUB HE SAYS AS IF IT'S SOMETHING EVERYONE EVENTUALLY DOES YOU HAVE TO DECIDE ON THE RIGHT CORPORATE IMAGE IF I WAS HAPPY WITH A STANDARD SHANGHAI CLUB IT WOULD BE DULL AND THAT WOULD VIOLATE EVERYTHING MR TANG STANDS FOR PERHAPS THE ENTREPRENEUR'S OBSESSION WITH TAKING THE ROAD LESS TRAVELED IS ONE REASON WHY THE PAINTINGS IN HIS CLUB ARE ARRANGED WITH AN EXTREME DISREGARD FOR GENRE OR PERIOD A HUGE CLASSICAL CHINESE WALL PAINTING HANGS NEXT TO A CONTEMPORARY PORTRAIT OF MAO TSETUNG PAINTED IN 1982 BY YU YONHAN THE WORK MINGLES THE SIMPLE LINES OF A TRADITIONAL CHINESE PEASANT PAINTING WITH THE OUTRAGEOUS PRIMARY COLORS OF AN ANDY WARHOL ANOTHER POP RENDERING BY THE SAME ARTIST CASTS MAO ALONGSIDE AMERICAN SINGER WHITNEY HOUSTON IT IS TITLED MAO WITH LOVE WHITNEY MANY OF THE LEADING FIGURES IN CONTEMPORARY CHINESE ART WERE INTRODUCED TO HONG KONG THROUGH MR TANG'S PATRONAGE ASIDE FROM BEING TOPICAL THE PAINTINGS APPEAL TO HIS LUST FOR COLOR HE IS OPENMINDED ABOUT NEW TYPES OF ART COMING OUT BUT HE DOESN'T LIKE GRIM DARK THINGS SAYS TSONGZUNG CHANG A LOCAL GALLERY OWNER AND AN ART CONSULTANT TO MR TANG HIS IDEA OF ART IS SOMETHING YOU CAN LIVE WITH RATHER THAN ART YOU PUT IN A SHOWROOM IT'S PERSONAL ART ART YOU CAN RELATE TO TO BE A GENIUS MR TANG EXPLAINS YOU'VE GOT TO THINK OPPOSITE TO WHAT EVERYONE ELSE THINKS OTHERWISE YOU DON'T PRODUCE ORIGINAL IDEAS I HAVE NO PRETENSE TO BEING A GENIUS BUT I AM ORIGINAL MR GLAIN IS A STAFF REPORTER FOR THE ASIAN WALL STREET JOURNAL 9301260095 930126 LEISURE & ARTS BOOKSHELF RON BROWN'S FRIENDS BY MANUELA HOELTERHOFF A LOBBYIST HAS JUST BEEN APPOINTED COMMERCE SECRETARY WELL THAT'S ONE LOBBYIST FEWER TO LOBBY FOR SUCH INTERESTING POLITICAL FIGURES AS BABY DOC DUVALIER OR MAKERS OF A NOT VERY EFFECTIVE SEWAGE PROCESSING TREATMENT WE WANT TO LOOK ON THE BRIGHT SIDE NOW THAT PRESIDENT CHANGE IS IN THE WHITE HOUSE BUT KEEP IN MIND THE DEPARTURE OF RONALD BROWN FOR THE CABINET LEAVES SOMETHING LIKE 80000 OTHER INFLUENCE PEDDLERS MANIPULATING THE POLITICAL PROCESS THE JOURNAL'S WHITE HOUSE CORRESPONDENT JEFFREY H BIRNBAUM FOLLOWED SEVERAL OF THESE HIGHEND FIXERS AROUND DURING THE 19891990 CONGRESSIONAL SESSION HIS NEW BOOK THE LOBBYISTS HOW INFLUENCE PEDDLERS GET THEIR WAY IN WASHINGTON TIMES BOOKS 334 PAGES 25 DESCRIBES THEIR EFFORTS ON BEHALF OF JUST FOR EXAMPLE THE TRUCKING INDUSTRY CUTTING CAPITALGAINS TAXES AND BOOZY LUNCHES HERE ARE SOME EXCERPTS WHAT'S THE ETYMOLOGY THE WORD LOBBYIST' WAS FIRST USED IN BRITAIN TO REFER TO JOURNALISTS WHO STOOD IN LOBBIES AT THE HOUSE OF COMMONS WAITING TO INTERVIEW NEWSMAKERS ITS INITIAL MODERN USAGE IN AMERICA CAME IN 1829 ACCORDING TO THE ESSAYIST HL MENCKEN PRIVILEGE SEEKERS IN NEW YORK'S CAPITAL ALBANY WERE REFERRED TO AS LOBBYAGENTS THREE YEARS LATER THE TERM WAS ABBREVIATED TO 'LOBBYIST' AND WAS HEARD FREQUENTLY IN WASHINGTON MOSTLY AS AN EXPRESSION OF DISDAIN IT'S A GROWTH INDUSTRY BILL AS THE 1980S CAME TO A CLOSE THERE WERE NEARLY THREE THOUSAND TRADEASSOCIATION OFFICES IN WASHINGTON MOST OF WHICH REPRESENTED BUSINESSES OF SOME SORT THEY RANGED IN SIZE FROM THE 125000MEMBER NATIONAL ASSOCIATION OF HOME BUILDERS AND THE THIRTEENTHOUSANDMEMBER AMERICAN BANKERS ASSOCIATION WITH ANNUAL BUDGETS OF MORE THAN 10 MILLION TO THE BOW TIE MANUFACTURERS ASSOCIATION AND THE POST CARD MANUFACTURERS ASSOCIATION EACH WITH FEWER THAN TEN MEMBER COMPANIES AND BUDGETS OF LESS THAN 10000 A YEAR BUT THEY'RE NOT ALL THE GROSS PORKERS YOU THINK THEY ARE IF LOBBYISTS WERE ALWAYS SO CRASS SURELY THEY WOULD BE EASIER TO UNDERSTAND IF THEY WERE SO BLATANT THEY WOULD NOT BE NEARLY AS EFFECTIVE AS THEY OFTEN ARE AND THEY ARE EFFECTIVE AT LEAST ON THE MARGINS BUT IT IS THERE ON RELATIVELY SMALL CHANGES TO LARGER PIECES OF LEGISLATION THAT BIG MONEY IS MADE AND LOST CAREFUL INVESTMENT IN A WASHINGTON LOBBYIST CAN YIELD ENORMOUS RETURNS IN THE FORM OF TAXES AVOIDED OR REGULATIONS CURBED AN ODD NEGATIVE SORT OF CALCULATION BUT ONE THAT FORMS THE BASIS OF THE ECONOMICS OF LOBBYING EVEN SO SOME LACK THE LIGHT TOUCH AS REP TOM DOWNEY CHAMPION OF MUTUAL LIFE INSURANCE COMPANIES DISCOVERED AT A DINNER LOBBYIST VINCENT REUSING AGAIN INTRUDED FIRST HE GOT DOWN ON ONE KNEE TO TALK TO DOWNEY THEN WHEN SOMEONE GOT UP TO GO TO THE BATHROOM HE TOOK THE VACATED SEAT AND WOULD NOT GIVE IT UP ON HOW GEORGE BUSH'S SUICIDAL STATEMENT ABOUT THE NEED FOR TAX INCREASES QUICKENED THE PULSE OF TWO FREELANCE BELTWAY LOBBYISTS THEIR EXPENSIVELY DECORATED OFFICES NOW HUM WITH EXCITEMENT THEY SELL THEIR SERVICES TO ALMOST ANYONE WHO IS WILLING TO PAY THEIR FEES THAT MEANS THAT BAD NEWS FOR CORPORATE AMERICA IS GOOD NEWS FOR THEM CRISIS IS THEIR STOCKINTRADE AND THAT IS PRECISELY WHAT THE PRESIDENT'S STATEMENT HAS CREATED THEY BEGIN TO PLOT AND PLAN THEY DECIDE TO CONTACT THE LIQUOR DISTRIBUTORS WITH WHOM THEY HAD ONCE MET SURELY THEY WILL FEAR A TAX INCREASE AND WILL WANT TO HIRE MORE LOBBYISTS LOBBYIST LIVES TOO ARE BLIGHTED BY THE DEFICIT ESPECIALLY AS IT SPINS INTO THE OZONE IN 1989 LOBBYISTS AND THE DEFICIT WERE ALWAYS CLASHING EVERY TIME A LOBBYIST WANTED TO GET SOME GOODIE FOR A CLIENT WHETHER IT WAS A TAX BREAK A FEDERAL GRANT OR A DEFERRED REGULATION LAWMAKERS DEMANDED TO KNOW HOW ARE YOU GOING TO PAY FOR IT' AND THAT WAS ONE QUESTION THAT MOST LOBBYISTS WERE RELUCTANT TO ANSWER SINCE IT USUALLY MEANT TAKING MONEY AWAY FROM SOMEBODY ELSE'S CLIENT AND THAT MADE A LOBBYIST'S JOB A HARD SELL EVEN UNDER THE BEST OF CIRCUMSTANCES LOBBYISTS MISS TONY COELHO THE DEMOCRATIC CONGRESSMAN FORCED INTO RETIREMENT AND PROBABLY VICE VERSA COELHO HAD BUILT HIS REPUTATION BY FINDING WAYS TO ENTICE BUSINESS EXECUTIVES AND THEIR LOBBYISTS TO SHOWER DEMOCRATIC CANDIDATES WITH CAMPAIGN CASH WHEN HE FIRST TOOK OVER THE HOUSE DEMOCRATS' REELECTION COMMITTEE BUSINESS POLITICALACTION COMMITTEES OR PACS CONTRIBUTED LITTLE TO HIS PARTY'S CANDIDATES BUT HE SUCCESSFULLY TURNED THAT AROUND BY AGGRESSIVELY MARKETING THE TRADITIONALLY PROLABOR DEMOCRATS AS INCREASINGLY PROBUSINESS OFTEN DURING CANDIDATE FORUMS FOR CORPORATE PAC MANAGERS THE FORUMS WERE NICKNAMED MEAT MARKETS OR CATTLE CALLS WHERE DO LOBBYISTS COME FROM THE REVOLVING DOOR IS A GOOD PLACE TO LOOK A MAJOR FOCUS OF THE HUD INQUIRY WAS THE WAY THAT FORMER REAGAN OFFICIALS AND OTHER PROMINENT REPUBLICANS WERE ABLE TO USE THEIR PULL TO WIN HUGE FEDERAL HOUSING SUBSIDIES FOR THEIR CLIENTS IN EXCHANGE FOR OBTAINING THIS SPECIAL TREATMENT THE LOBBYISTS HAULED IN FOR THEMSELVES SOME 6 MILLION IN LOBBYING FEES QUOTE OF THE DAY FROM A MEGALOBBYIST IN WASHINGTON EIGHTY PERCENT TO NINETY PERCENT OF ALL ISSUES ARE DECIDED ON THE BASIS OF POLITICS RATHER THAN THE PURE MERITS OF THE ISSUE MS HOELTERHOFF IS THE JOURNAL'S BOOKS EDITOR 9301260094 930126 NAVISTAR WORKERS APPROVE CONTRACT SHARES JUMP TO 3 BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO NAVISTAR INTERNATIONAL CORP SHARES JUMPED AFTER MEMBERS OF THE UNITED AUTO WORKERS UNION APPROVED A 32MONTH CONTRACT THAT INCLUDES A JOINT MANAGEDCARE HEALTH PROGRAM AND OTHER PROVISIONS TO HELP THE TRUCK MAKER CONTROL COSTS APPROVAL OF THE AGREEMENT BY 77 OF THOSE VOTING MEANS THE COMPANY HAS ACHIEVED ONE OF TWO STEPS IT SAYS IT NEEDS TO SAVE 200 MILLION ANNUALLY AND REMAIN SOLVENT UNDER THE PACT THE MAKER OF INTERNATIONAL BRAND TRUCKS GETS CONCESSIONS TO HELP IT OPERATE MORE EFFICIENTLY BUT IT ALSO GIVES THE UNION GREATER SAY OVER ITEMS SUCH AS PLANT CLOSINGS AND SOURCING OF COMPONENTS IN LATE NEW YORK STOCK EXCHANGE TRADING NAVISTAR SHARES WERE UP 625 CENTS TO 3 DESPITE THE SHARP GAIN IN HEAVY TRADING THE MOST IMPORTANT STEP IN NAVISTAR'S TURNAROUND EFFORT ISN'T YET ASSURED A FEDERAL JUDGE IN DAYTON OHIO HAS TO RULE ON A SEPARATE AGREEMENT REACHED IN DECEMBER UNDER WHICH NAVISTAR SEEKS TO SLICE ITS TOTAL LIABILITY FOR RETIREE HEALTH CARE TO 1 BILLION FROM 26 BILLION US DISTRICT JUDGE WALTER RICE RULED IN OCTOBER THAT ANY PROPOSED SETTLEMENT IS SUBJECT TO CERTIFICATION OF THE RETIREES YESTERDAY HE SAID THROUGH A SECRETARY THAT THE RETIREES WILL BE NOTIFIED WHEN WHERE AND HOW THEY SHOULD STATE THEIR VIEWS UNDER DETAILS DISCLOSED BY NAVISTAR YESTERDAY SOME 40000 UNION AND NONUNION RETIREES AND THEIR 23000 DEPENDENTS FACE THE LOSS OF DENTAL VISION AND HEARING COVERAGE PLUS HIGHER EXPENSES FOR THE MEDICAL COVERAGE THEY RETAIN THOSE OVER AGE 65 WOULD HAVE TO PAY PREMIUMS OF 34 A MONTH AND DEDUCTIBLES OF 200 A YEAR FOR EACH INDIVIDUAL PRESCRIPTIONS WOULD COST 8 FOR EACH GENERIC DRUG 18 FOR BRANDNAME DRUGS AND 7 IF EITHER TYPE IS PURCHASED BY MAIL SOME RETIREES ACCUSTOMED TO FULLYPAID MEDICAL COVERAGE ARE BALKING AT THE CHANGES IN WHAT MANY THOUGHT WAS A LIFETIME BENEFIT IT'S BETTER THAN WHAT THEY INITIALLY INTENDED BUT I WOULD SAY I'M STILL DISAPPOINTED SAID WILLIAM KEEGAN A RETIREE IN LOUISVILLE KY MIKE NEESE PRESIDENT OF A UAW LOCAL THAT REPRESENTS NAVISTAR WORKERS IN SPRINGFIELD OHIO SAID RETIREES HE'S TALKED TO AIN'T HAPPY MR NEESE PUSHED AN ALTERNATIVE PLAN THAT CALLED FOR A LOWER STARTING WAGE FOR NEW WORKERS IN RETURN FOR A SMALLER LOAD ON THE RETIREES HE CONTENDED THAT UNDER THE PLAN THAT WAS NEGOTIATED RETIREES SURVIVING SPOUSES AND FUTURE RETIREES ARE GOING TO BEAR THE MAJOR BRUNT OF THE BURDEN FOR THE SURVIVAL OF THE COMPANY IN THE CONTRACT APPROVED OVER THE WEEKEND BY THE UAW'S 7600 ACTIVE MEMBERS NAVISTAR ACHIEVED ITS GOALS OF CURBING HEALTH COSTS WITH A MANAGEDCARE HEALTH PLAN TO BE RUN JOINTLY BY THE COMPANY AND UNION IT ALSO SUSPENDED A PENALTY FOR EXCESS OVERTIME AND A PROVISION THAT MADE THE COMPANY RECALL A LAID OFF WORKER FOR EVERY TWO WHO RETIRED BUT NAVISTAR GAVE THE UAW A SIGNIFICANT AMOUNT OF AUTHORITY AGREEING THAT NO PLANT WILL BE CLOSED DURING THE CONTRACT WITHOUT APPROVAL OF THE UNION THE UNION AND THE COMPANY ALSO WILL JOINTLY MAKE DECISIONS ON SOURCING OF COMPONENTS IN ADDITION THE UNION MEMBERS GET TWO 3 LUMPSUM PAYMENTS ON OCT 1 1993 AND OCT 1 1994 PLUS RETENTION OF COSTOFLIVING RAISES 9301260093 930126 MARKETSCAN IN WEIGHING IMPACT OF SUPER BOWL ADS MARKETERS HAVE TROUBLE KEEPING SCORE BY KATHLEEN DEVENY COULD IT POSSIBLY BE WORTH 28000 A SECOND TO ADVERTISE ON NEXT SUNDAY'S SUPER BOWL IT IS A QUESTION THAT DIVIDES ADVERTISERS AND MARKETING EXPERTS INTO CAMPS NEARLY AS RIVALROUS AS BUFFALO AND DALLAS MARKETERS OF SOME BRANDS INCLUDING PEPSI BUDWEISER AND GILLETTE SAY THEY WOULDN'T DREAM OF MISSING THE BIG GAME OTHERS INCLUDING COKE ALKASELTZER AND SUDAFED SEEM PERFECTLY HAPPY TO REMAIN ON THE SIDELINES THIS YEAR AFTER HAVING ADVERTISED ON PREVIOUS SUPER BOWLS SALES OF MANY CONSUMER PRODUCTS ADVERTISED ON LAST YEAR'S SUPER BOWL DID INCREASE IN THE SIX WEEKS AFTER THE GAME WHEN COMPARED WITH THE SIX WEEKS AFTER THE SUPER BOWL IN JANUARY 1991 ACCORDING TO DATA COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL BY INFORMATION RESOURCES INC BUT THE GAINS VARIED WIDELY FROM A 33 FOR PEPSI AND DIET PEPSI TO 181 FOR GILLETTE'S SENSOR AND POSTGAME SALES OF SEVERAL BRANDS INCLUDING NUPRIN AND SEVENUP DECLINED THE DATA UNDERSCORE THE DIFFICULTY MARKETERS ROUTINELY FACE IN MEASURING THE EFFECT OF THEIR ADVERTISING BUT ONE THING IS CERTAIN THE KICKOFF ON JAN 31 WILL INITIATE AN EVENT THAT HAS BECOME AS IMPORTANT FOR MARKETERS AS FOR FOOTBALL FANS SINCE APPLE COMPUTER INC INTRODUCED ITS MACINTOSH PERSONAL COMPUTER IN 1984 WITH A SUPER BOWL SPOT SUPER SUNDAY HAS INCREASINGLY BEEN USED BY ADVERTISERS TO LAUNCH NEW CAMPAIGNS ALMOST A MONTH BEFORE THIS YEAR'S GAME SUPER BOWL XXVII GENERAL ELECTRIC CO'S NBC UNIT SOLD OUT ITS ADVERTISING TIME FOR THE EVENT AT A RATE OF 850000 FOR 30 SECONDS AMONG THE BIG SPENDERS IS GILLETTE CO WHICH PURCHASED TWO MINUTES OF AIR TIME TO PROMOTE A NEW LINE OF MEN'S TOILETRIES THEN THERE IS PEPSICO INC WHICH SNAPPED UP FIVE MINUTES OF TIME FOR THE NATIONAL LAUNCH OF CRYSTAL PEPSI AS WELL AS FOR NEW ADS FOR FLAGSHIP PEPSI PEPSICO'S FRITOLAY UNIT WILL START A TASTE TEST FOR ITS LAY'S POTATO CHIPS DURING THE GAME'S HALFTIME SHOW WHILE ANHEUSERBUSCH COS BOUGHT FOUR MINUTES TO AIR THE FIFTH INSTALLMENT OF ITS BUD BOWL COMPETITION BETWEEN ANIMATED BEER BOTTLES BUT EVEN STALWART SUPER BOWL ADVERTISERS AREN'T SURE OF THE SALES IMPACT OF THE MILLIONS THEY SPEND GILLETTE FOR EXAMPLE DOESN'T KNOW HOW MUCH OF LAST YEAR'S HEFTY POSTGAME GAIN FOR SENSOR CAN BE ATTRIBUTED TO ITS SUPER BOWL ADVERTISING THAT IS PARTLY BECAUSE THE COMPANY SPENT HEAVILY ALL YEAR ON MAGAZINE AND TELEVISION ADS ALSO MANY OF ITS ADS WERE AIMED AT BUILDING IMAGE NOT JUST PUSHING RAZORS AND BLADES MOST SUPER BOWL ADVERTISERS SAY INTANGIBLE BENEFITS NOT SHORTTERM SALES GAINS ARE THEIR GOAL SOME MAINTAIN THE SPLASHY ADS AND THE FACT THAT MOST VIEWERS HAVE AT LEAST AN INKLING OF HOW EXPENSIVE THEY ARE LEND PRESTIGE TO THEIR BRANDS AND HELP FIRE UP THEIR OWN EMPLOYEES OTHERS SAY THEIR AIM IS SIMPLY TO GET THEIR BRAND NAME BEFORE THE NATION'S 100 MILLION OR SO SUPER BOWL CELEBRANTS THE LARGEST TELEVISION AUDIENCE OF THE YEAR AND ONE UNLIKELY TO FLIP TO OTHER STATIONS DURING COMMERCIALS THOSE AUDIENCE ATTRIBUTES HAVE HELPED KEEP RATES FOR SUPER BOWL ADVERTISERS HIGH EVEN THOUGH RATINGS HAVE BEEN DRIFTING DOWNWARD AFTER PEAKING IN 1982 AT 491 MEANING 491 OF ALL HOUSEHOLDS WITH TELEVISIONS WERE WATCHING THE GAME THE RATINGS SLIPPED TO 403 BY 1992 ADVERTISERS PAID ABOUT THE SAME PRICE THIS YEAR AS LAST TO ADVERTISE ON THE SUPER BOWL BUT THAT'S ABOUT FOUR TIMES AS MUCH AS A 30SECOND SPOT ON THE MOST EXPENSIVE NATIONAL FOOTBALL LEAGUE PLAYOFF GAMES I THINK WHEN THE COST OF THE SUPER BOWL STARTED PUSHING THAT LEVEL EVEN THE SIGNIFICANT PACKAGEDGOODS PLAYERS QUESTIONED THE VALUE OF THOSE 30SECOND SPOTS SAYS ANITA HERSH PRESIDENT OF THE NEW YORKBASED CONSULTING AND DESIGN FIRM LISTER BUTLER INC MARKETERS TODAY ARE LOOKING HARD TO JUSTIFY ALL THEIR EXPENDITURES MILES INC FOR EXAMPLE HAS SKIPPED ADVERTISING ITS ALKASELTZER BRAND ON THE SUPER BOWL FOR THE PAST TWO YEARS LARGELY BECAUSE OF THE LOFTY PRICE THE FIZZY ANTACID'S BUDGET ISN'T BIG ENOUGH TO PRODUCE COMMERCIALS ESPECIALLY FOR THE BIG GAME AND THE COMPANY WAS CONCERNED IT WOULD GET LOST IN THE CLUTTER INSTEAD ALKASELTZER ATTEMPTED TO CAPITALIZE ON ANOTHER LIVE AND CHEAPER TELEVISION EVENT LAST WEEK'S PRESIDENTIAL INAUGURATION ALSO SITTING OUT THE GAME THIS YEAR IS COCACOLA CO ALTHOUGH A SPOKESMAN SAYS PRICE ISN'T AN ISSUE THE COMPANY HAS AVOIDED THE SUPER BOWL AS MANY TIMES AS IT HAS SIGNED ON DURING THE PAST DECADE THE COMPANY GOT A JUMP ON COMPETITORS BY UNVEILING A NEW CAMPAIGN AND SLOGAN FOR DIET COKE ON JAN 1 NEW ADS FOR CLASSIC COKE MEANWHILE AREN'T READY THE TIMING OF THE GAME WAS OFF FOR US SAYS A COMPANY SPOKESMAN OBVIOUSLY WE DON'T FEEL ANY OBLIGATION TO BE THERE NONETHELESS EVEN SOME ADVERTISERS WHO SAW SALES DECLINE AFTER LAST YEAR'S GAME ARE EAGER TO MAKE A PLAY AGAIN THIS YEAR SALES OF SEVENUP AND DIET SEVENUP DECLINED NEARLY 7 IN THE SIX WEEKS FOLLOWING LAST YEAR'S SUPER BOWL BUT THE UNIT OF DR PEPPER/SEVENUP COS IS BUYING THREE 30SECOND SPOTS IN THE FOURTH QUARTER OF THIS YEAR'S GAME A RISKY PROPOSITION CONSIDERING WASHINGTON'S EARLY RUNAWAY LEAD IN SUPER BOWL XXVI SEVENUP IS COUNTING ON A LIFT IN SALES AFTER THE GAME BUT THE ADS ARE ALSO MEANT TO BE AN INCENTIVE TO THE COMPANY'S BOTTLERS AND GIVE THE APPEARANCE THAT THE TINY BRAND IS A DIRECT THREAT TO ITS MUCH LARGER RIVALS IT'S A PRESTIGE EVENT AND IT BESTOWS A LITTLE OF THAT ON OUR BRAND A COMPANY SPOKESMAN SAYS I THINK EVERYONE WOULD LIKE TO BOIL IT DOWN TO A MATTER OF SALES INCREASES BUT THE EFFECT OF ADVERTISING IS VERY DIFFICULT TO MEASURE BRISTOLMYERS SQUIBB CO THE MAKER OF NUPRIN WON'T COMMENT ON ITS SUPER BOWL COMMERCIALS OR THEIR EFFECTIVENESS AND WON'T SAY WHETHER IT WILL ADVERTISE ON THIS YEAR'S TELEVISED GAME TO TRY TO GET MORE BANG FROM ITS SUPER BOWL ADVERTISING BUDWEISER DEVELOPED ITS BUD BOWL PROMOTIONAL CAMPAIGN FIVE YEARS AGO THE COMPANY WANTED TO REACH THE BIG SUPER BOWL AUDIENCE BUT WASN'T SURE ITS MORE TRADITIONAL ADS WERE HAVING AN IMPACT IT DECIDED TO LINK THE BUD BOWL ADS WITH A COMMON THEME AND USE THEM TO HELP PUSH AN INSTORE PROMOTION WHICH INCLUDES A SWEEPSTAKES WITH A GRAND PRIZE OF 1 MILLION BUD BOWL IS DESIGNED TO ENTERTAIN PEOPLE AND BRING OUR BRANDS TO MIND SAYS TOM SHARBAUGH BUDWEISER BRAND MANAGER BUT IF YOU DON'T HAVE A PROMOTIONAL OBJECTIVE IT TAKES AWAY A LARGE PART OF THE EFFECTIVENESS OF BEING ON THE SUPER BOWL EVEN THOUGH SALES OF PEPSI AND DIET PEPSI INCREASED ONLY ABOUT 3 IN THE SIX WEEKS FOLLOWING SUPER BOWL XXVI COMPARED WITH THE SAME SIXWEEK PERIOD IN THE PREVIOUS YEAR THE COMPANY HAS PURCHASED FIVE MINUTES OF AIR TIME DURING SUNDAY'S GAME TO SHOW NEW COMMERCIALS FOR PEPSI AND CRYSTAL PEPSI BECAUSE SOFTDRINK SALES ARE AFFECTED BY EVERYTHING FROM THE WEATHER TO THE AMOUNT OF PRODUCT RETAILERS PUT ON SPECIAL DISPLAYS THE COMPANY SAYS THE DIRECT ROLE OF THE ADS IN BOOSTING SALES IS IMPOSSIBLE TO DECIPHER WHAT WE'RE LOOKING TO DO IS LAUNCH OUR CAMPAIGNS ON THE BIGGEST ADVERTISING SHOWCASE OF THE YEAR EXPLAINS A PEPSI SPOKESMAN NOT BEING ON THE SUPER BOWL HE SAYS IS LIKE MISSING THE SENIOR PROM MEANWHILE PEPSICO'S LAY'S POTATO CHIPS WILL SPONSOR THIS YEAR'S SUPER BOWL HALFTIME SHOW WHICH FEATURES MICHAEL JACKSON LAST YEAR FRITO SPONSORED AN AMBUSH HALFTIME SHOW ON NEWS CORP'S FOX NETWORK TO INTRODUCE A BITESIZE VERSION OF ITS DORITOS CHIPS BUT THE STRATEGY SEEMED INEFFECTIVE DORITOS SALES DROPPED 153 DURING THE SIX WEEKS AFTER THE GAME COMPARED WITH THE SAME PRIORYEAR PERIOD ACCORDING TO INFORMATION RESOURCES A FRITOLAY SPOKESMAN BLAMES THE DECLINE NOT ON THE ADVERTISING BUT RATHER ON CONSUMERS' LACK OF INTEREST IN THE TINY CHIPS WHICH WERE TAKEN OFF THE MARKET LAST SPRING SOME ADVERTISERS INCLUDING BUDWEISER PEPSI AND GILLETTE SAY THEY WOULDN'T MISS THE BIG GAME BUT EVEN THE BIGGEST FANS OF THE SUPER BOWL ADS SAY IT IS DIFFICULT TO MEASURE THE SALES IMPACT OF THE MILLIONS THEY SPEND 9301260092 930126 STAC ELECTRONICS SUES MICROSOFT LOS ANGELES STAC ELECTRONICS SAID IT FILED A PATENT INFRINGEMENT LAWSUIT AGAINST MICROSOFT CORP THE SUIT FILED IN CENTRAL DISTRICT COURT IN LOS ANGELES SEEKS UNSPECIFIED DAMAGES AND AN INJUNCTION AGAINST MICROSOFT FROM USING DATA COMPRESSION TECHNOLOGY PROTECTED BY TWO PATENTS STAC ELECTRONICS ALLEGES MICROSOFT HAS USED THE TECHNOLOGIES IN ITS NOTYET RELEASED MSDOS VERSION 60 OPERATING SYSTEM FOR INTERNATIONAL BUSINESS MACHINES CORPCOMPATIBLE PERSONAL COMPUTERS A SPOKESWOMAN FOR MICROSOFT SAID THE COMPANY HADN'T SEEN THE SUIT AND THEREFORE COULDN'T COMMENT 9301260091 930126 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN DIVERSITY IS THE BUZZWORD FOR COMPANIES AND HEADHUNTERS FIRMS INCREASINGLY ASK RECRUITERS TO HELP BROADEN THE POOL FOR TOPTIER HIRES RUSSELL REYNOLDS'S BOSTON OFFICE PROSPECTS THROUGH WOMEN'S TRADE GROUPS OR CAREER OFFICES AT WOMEN'S COLLEGES HEIDRICK & STRUGGLES SEES GREAT DEMAND FOR DIVERSITY ON CORPORATE BOARDS WITHOUT A VARIED LIST SAYS CLEVELAND RECRUITER JEFFREY CHRISTIAN HEADHUNTERS LOSE THE SHOOTOUTS THAT GET THEM HIRED STILL THE UNIVERSE OF CANDIDATES IS HEAVILY SKEWED TO WHITE MEN SAYS TED WARD OF KORN/FERRY IN SAN FRANCISCO BLACKS STRUGGLE FOR TOP JOBS BECAUSE THEY LACK EXPERIENCE AT THE MIDDLE AND LOWER LEVELS SAYS CHARLES TAYLOR OF LAMALIE AMROP NEW YORK ADDING THE GLASS CEILING IS MUCH LOWER THAN PEOPLE UNDERSTOOD THE DIVERSITY DRIVE IS FUELED PARTLY BECAUSE TODAY'S CEO PROBABLY HAD AN EXPERIENCE WHERE A BLACK OR A GAY OR A WOMAN HAS DONE A GOOD JOB FOR THEM SAYS MR CHRISTIAN EXECUTIVES STAY PUT EVEN THOUGH THE ECONOMY IS PICKING UP TRISTATE MOTOR TRANSIT CO JOPLIN MO SAYS NONE OF ITS 12 SENIOR MANAGERS HAVE LEFT IN 2 1/2 YEARS THOUGH IT RECENTLY FIRED TWO OF ITS 24 MIDDLE MANAGERS TIMKEN CO ESTIMATES OVERALL TURNOVER LAST YEAR AT 3 DIEBOLD INC HASN'T HAD ANY VOLUNTARY DEPARTURES OF EXECUTIVES IN THE PAST TWO MONTHS BOATMEN'S BANCSHARES INC CALLS ITS MID AND TOPLEVEL RANKS VERY STABLE COMPANIES AREN'T EAGER TO SCOOP UP NEW MANAGERS EITHER CARGILL REPLACES MOST DEPARTING EXECUTIVES BUT DOESN'T FORESEE A FLURRY OF MANAGEMENT HIRING FUTURE COMMUNICATIONS INC A DALLAS CABLETV AND BROADCASTING COMPANY FINDS STABILITY IN ITS MANAGEMENT RANKS BUT GREAT TURNOVER AT LOWER LEVELS JOB COMPLAINTS SHOULDN'T BE RESOLVED THROUGH PROXY VOTES REGULATORS RULE IN 1991 CRACKER BARREL OLD COUNTRY STORE INC OF LEBANON TENN FIRED ABOUT A DOZEN EMPLOYEES APPARENTLY BECAUSE THEY WERE HOMOSEXUALS THE DISMISSALS ANGERED THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM WHICH SOUGHT A STOCKHOLDER RESOLUTION ASKING CRACKER BARREL TO SAY IT ISN'T BIASED AGAINST HOMOSEXUALS THE COMPANY SOUGHT REGULATORS' SUPPORT TO BAR THE VOTE LAST WEEK THE SECURITIES AND EXCHANGE COMMISSION UPHELD AN EARLIER STAFF DECISION ALLOWING THE COMPANY TO KEEP THE NONBINDING RESOLUTION OFF ITS PROXY BALLOT THAT WAS PART OF A BROADER EFFORT BY SOME COMMISSIONERS TO LIMIT VOTING TO MORE FUNDAMENTAL QUESTIONS OF A COMPANY'S BUSINESS KEEPING SOCIAL QUESTIONS FROM SHAREHOLDERS THE SEC IS PULLING BACK AFTER EXPANDING HOLDERS' RIGHTS ON EXECUTIVE PAY LAST YEAR THE SEC IS SAYING WE'VE GIVEN YOU PROXY REFORM SO LAY OFF USING SHAREHOLDER PROPOSALS TO ADVANCE AN AGENDA' SAYS SARAH TESLIK OF THE COUNCIL OF INSTITUTIONAL INVESTORS FANFARE FOR THE NEW MAN LABOR SECRETARY ROBERT REICH'S SWEARINGIN FETE DRAWS THOUSANDS PROGRAM HOST VERNON JORDAN WHO HEADED THE CLINTON TRANSITION TEAM QUIPS HE WENT TO COLLECT UNEMPLOYMENT PAY AMONG THE NOTABLES ON THE PODIUM AFLCIO CHIEF LANE KIRKLAND A XEROX CORP EXECUTIVE AND TWO LEADERS OF UNION LOCALS OF GOVERNMENT WORKERS SEN KENNEDY GETS THE LOUDEST OVATION YOUNGSTERS WORRY ABOUT THEIR FUTURE HEALTH A NORTHWESTERN NATIONAL LIFE INSURANCE POLL OF 12 TO 18YEAROLDS SHOWS 63 DON'T EXPECT TO BE AS HEALTHY AS ADULTS AS THEY ARE NOW WHILE 10 ADMIT USE OF ILLEGAL DRUGS TWOTHIRDS SAY MOST OF THEIR PEERS DO THE POLL CONDUCTED AT MALLS SHOWS 81 FEEL DEPRESSION 58 HAVE A LOT OF STRESS AND 16 HAVE THOUGHT OF SUICIDE BLACKS FACE DISCRIMINATION ALMOST A QUARTER OF THE TIME A STUDY BY THE FAIR EMPLOYMENT COUNCIL OF GREATER WASHINGTON SHOWS THE GROUP HIRED BLACK AND WHITE COLLEGE STUDENTS AND GRADUATES TO RESPOND TO ADS THE APPLICANTS HAD THE SAME CREDENTIALS BUT WHITES GOT THE JOB MORE OFTEN THE NONPROFIT GROUP SAYS BUSINESS GROUPS HAVE CALLED SUCH TESTER STUDIES UNFAIR AND BIASED RUMORS SWIRL ABOUT TOP JOBS AT THE LABOR DEPARTMENT SECRETARY REICH ALREADY HAS FILLED FIVE SENIOR POSTS HE TAPS THOMAS GLYNN WHO HELPED RUN THE MASSACHUSETTS WELFARE PROGRAM AS DEPUTY AND CORPORATE LAWYER THOMAS WILLIAMSON JR AS TOP LAWYER CONGRESSIONAL STAFFER KITTY HIGGINS TAKES OVER AS CHIEF OF STAFF GERI PALAST OF THE SERVICE EMPLOYEES UNION BECOMES THE SENIOR LOBBYIST AND HARVARD ECONOMIST LAWRENCE KATZ ASSUMES THE TOP ECONOMIC SLOT FEW OTHER ANNOUNCEMENTS ARE PLANNED IMMEDIATELY BUT ANTHONY CARNEVALE WHO ADVOCATES FORCING COMPANIES TO SPEND AT LEAST 15 OF THEIR PAYROLL ON TRAINING IS CONSIDERED TO RUN THE EMPLOYMENT AND TRAINING ADMINISTRATION FOR OSHA CHIEF WASHINGTON STATE LABOR ADMINISTRATION DIRECTOR JOSEPH DEAR IS RUMORED ALONG WITH THE UAW'S FRANK MIRER AND THE STEELWORKERS' MICHAEL WRIGHT FOUR WOMEN INCLUDING CALIFORNIA'S DEPUTY TREASURER OLENA BERG EMERGE AS FRONTRUNNERS FOR THE PENSIONS AND BENEFITS WELFARE ADMINISTRATION THE CHECKOFF EACH YEAR OF ADDITIONAL SCHOOLING INCREASES A PERSON'S WAGES BY 16 SAYS A STUDY BY THE NATIONAL BUREAU OF ECONOMIC RESEARCH THAT USED IDENTICAL TWINS TO WEED OUT EXTERNAL CHARACTERISTICS AMONG OFFICE AND PLANT MANAGERS 96 PLAN TO OFFER A SMOKEFREE WORKPLACE BY 2002 THE INTERNATIONAL FACILITY MANAGEMENT ASSOCIATION REPORTS UP FROM 56 NOW 9301260090 930126 SANTA FE PACIFIC HANSON IN PACT SCHAUMBURG ILL SANTA FE PACIFIC CORP AND HANSON INDUSTRIES PLC SAID THEY REACHED A DEFINITIVE AGREEMENT ON A PREVIOUSLY ANNOUNCED GOLDFORCOAL SWAP UNDER THE AGREEMENT SANTA FE WILL ACQUIRE GOLD ASSETS FROM HANSON INCLUDING MINES IN NEVADA AND CALIFORNIA AND HANSON WILL ACQUIRE COAL ASSETS FROM SANTA FE INCLUDING UNDEVELOPED RESERVES IN NEW MEXICO SANTA FE IS A RAILROAD AND MINERAL COMPANY BASED IN SCHAUMBURG ILL HANSON IS A LONDONBASED INDUSTRIAL CONGLOMERATE ESTIMATES THIS MONTH SUGGESTED THE TRANSACTION WOULD INVOLVE ASSETS VALUED AT ABOUT 500 MILLION AT EACH COMPANY 9301260089 930126 FLETCHER CHALLENGE UNIT'S VOTE VANCOUVER BRITISH COLUMBIA FLETCHER CHALLENGE CANADA LTD SAID ITS MINORITY SHAREHOLDERS APPROVED THE ACQUISITION OF THE CANADIAN FORESTPRODUCT ASSETS OF CROWN FOREST INDUSTRIES LTD A WHOLLY OWNED UNIT OF FLETCHER CHALLENGE LTD OF NEW ZEALAND THE PURCHASE FOR 897 MILLION CANADIAN DOLLARS US6995 MILLION WILL ENABLE FLETCHER TO COMBINE THE OPERATIONS OF THE TWO CANADIAN UNITS WHICH THE NEW ZEALAND PARENT ACQUIRED IN THE 1980S FLETCHER CHALLENGE LTD A NATURAL RESOURCE AND BUILDING MATERIALS CONCERN CONTINUES AS AN INDIRECT 72 SHAREHOLDER OF FLETCHER CHALLENGE CANADA THE TRANSACTION IS CONDITIONED ON A SUCCESSFUL EQUITY OFFERING BY FLETCHER CHALLENGE CANADA TO RAISE ABOUT C177 MILLION BY JUNE 30 9301260088 930126 ECONOMY CLINTON APPOINTS HIS WIFE TO HEAD HEALTHCARE PANEL BY MICHAEL K FRISBY AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON APPOINTED HIS WIFE HILLARY TO LEAD A HEALTHCARE REFORM TASK FORCE THAT WILL WRITE LEGISLATION TO BE SUBMITTED TO CONGRESS IN MAY IN MAKING THE APPOINTMENT WHICH WAS EXPECTED MR CLINTON TOOK STEPS TO FULFILL HIS CAMPAIGN PROMISE TO CONTROL THE COSTS OF HEALTH CARE AND INCREASE ACCESS FOR THE POOR AT THE FIRST MEETING OF THE TASK FORCE THE PRESIDENT SAID HE BELIEVES UNIVERSAL COVERAGE CAN BE ACHIEVED IF THE COSTS OF HEALTHCARE COVERAGE IS CONTROLLED HE SAID THAT 14 OF US INCOME CURRENTLY IS SPENT ON HEALTH CARE WHILE CANADA AT 92 SPENDS THE SECONDHIGHEST PERCENTAGE THE LEGISLATION WILL BE AIMED AT SLOWING THE GROWTH OF HEALTHCARE SPENDING PROVIDING UNIVERSAL ACCESS TO HIGHQUALITY CARE ENSURING CONSUMER CHOICE IN HEALTH CARE MAINTAINING A PRIVATE COMPETITIVE SYSTEM AND SLASHING BUREAUCRACY IN MY JUDGMENT IF WE DO THIS RIGHT OVER THE NEXT EIGHT YEARS YOU'RE GOING TO SEE HUGE SAVINGS IN TAX DOLLARS MR CLINTON SAID AND EVEN BIGGER SAVINGS MORE THAN TWICE THE SAVINGS IN PRIVATE DOLLARS THAT WILL FREE UP HUNDREDS OF BILLIONS OF DOLLARS LITERALLY BETWEEN NOW AND THE END OF THE DECADE TO REINVEST IN ECONOMIC GROWTH AND OPPORTUNITY DESPITE SUCH OPTIMISTIC PREDICTIONS MR CLINTON RECENTLY WAS PRESENTED WITH SOME SOBERING NUMBERS FROM HEALTH ADVISERS ON HIS TRANSITION TEAM THEY SHOW THAT THE COST OF PROVIDING COVERAGE TO THE 37 MILLION WHO ARE UNINSURED COULD BE HUNDREDS OF BILLIONS OF DOLLARS OVER A FIVEYEAR PHASEIN PERIOD AN EXPENSE SOME BELIEVE COULD BE OFFSET ONLY BY SEVERE MEDICAL PRICE CONTROLS BUT IT IS UNLIKELY THE GOVERNMENT WOULD FOOT THE ENTIRE BILL FOR EXPANDING COVERAGE IN THE NEW ADMINISTRATION'S PLAN DURING THE CAMPAIGN MR CLINTON TALKED OF REQUIRING EMPLOYERS TO PROVIDE HEALTH INSURANCE TO THEIR WORKERS AND HIS ADVISERS SAID THE PRESIDENT HASN'T BACKED AWAY FROM THAT IDEA MR CLINTON CONCEDED THAT IN THE SHORT RUN HE MUST ANSWER THE TOUGH QUESTION HOW DO YOU TAKE THE SAVINGS AND PHASE IN UNIVERSAL COVERAGE OR SHOULD THERE BE SOME OTHER WAY TO PAY FOR THAT BY APPOINTING HIS WIFE TO HEAD THE TASK FORCE THE PRESIDENT SENT A CLEAR MESSAGE TO THE NATION THAT HILLARY RODHAM CLINTON WILL BE A KEY FIGURE IN HIS ADMINISTRATION HE TOLD THE TASK FORCE THAT WE HAVE A FIRST LADY OF MANY TALENTS THAT WHO MOST OF ALL CAN BRING PEOPLE TOGETHER AROUND COMPLEX AND DIFFICULT ISSUES TO HAMMER OUT CONSENSUS AND GET THINGS DONE MRS CLINTON WON'T RECEIVE A SALARY FOR HER WORK ON THE TASK FORCE I NEVER HAVE PAID HER FOR HER PUBLIC SERVICE EFFORTS THE PRESIDENT SAID I DON'T WANT TO START NOW HE SAID THAT HE CHOSE HIS WIFE FOR THE JOB BECAUSE SHE'S BETTER AT ORGANIZING AND LEADING PEOPLE FROM A COMPLEX BEGINNING TO A CERTAIN END THAN ANYBODY I'VE EVER WORKED WITH IN MY LIFE MRS CLINTON WILL WORK WITH CAROL RASCO THE DOMESTIC POLICY ADVISER IRA MAGAZINER THE SENIOR POLICY ADVISER AND JUDY FEDER WHO HEADED THE HEALTHCARE TRANSITION AND IS EXPECTED TO GET A MAJOR APPOINTMENT AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES PEOPLE WHO ATTENDED THE MEETING SAID MR CLINTON SAID THAT HEALTHCARE REFORM WILL BE THE HIGHEST DOMESTIC PRIORITY IN HIS ADMINISTRATION THE PRESIDENT SAID THE TASK FORCE WILL WORK OUT OF A WAR ROOM IN THE OLD EXECUTIVE OFFICE BUILDING NEXT TO THE WHITE HOUSE WE'RE GOING TO WORK CONSTANTLY DAY AND NIGHT UNTIL WE HAVE A HEALTHCARE PROGRAM THAT WE BELIEVE CAN PASS HE SAID TALKING WITH REPORTERS AFTER THE MEETING SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA SAID THE TASK FORCE HASN'T RULED OUT ANY OPTIONS WE CERTAINLY DIDN'T TAKE ANYTHING OFF THE TABLE TODAY SHE SAID A TOP ADMINISTRATION HEALTH OFFICIAL SAID MR CLINTON IS STILL COMMITTED TO MANAGED COMPETITION AN AMALGAMATION OF GOVERNMENT REGULATION AND FREEMARKET ENTERPRISE UNDER WHICH LARGE HEALTHINSURANCE PURCHASING NETWORKS REPRESENT EMPLOYERS AND INDIVIDUALS FORCING HEALTHCARE PROVIDERS TO COMPETE FOR THEIR BUSINESS TO PROVIDE A STANDARD PACKAGE OF HEALTH BENEFITS SET BY THE FEDERAL GOVERNMENT IN ADDITION HE WANTS TO PUT AN OVERALL CAP ON PUBLIC AND PRIVATE HEALTH SPENDING THE OFFICIAL SAID MR CLINTON ALSO HOPES TO INCLUDE A PROPOSAL FOR CONTROLLING COSTS AND EXPANDING ACCESS TO LONGTERM OR NURSINGHOME CARE THE OFFICIAL SAID AMONG THE QUESTIONS STILL TO BE RESOLVED ACCORDING TO THE OFFICIAL ARE HOW MANAGED CARE COULD WORK IN RURAL AREAS WHERE THERE AREN'T MANY HEALTHCARE PROVIDERS AND HOW TO LIGHTEN THE BURDEN ON SMALL BUSINESS OF MANDATED EMPLOYER HEALTH BENEFITS THE PRESIDENT ALSO APPEALED TO THE PUBLIC WHICH PLAYED A LARGE ROLE IN FORCING THE WITHDRAWAL OF ZOE BAIRD AS HIS ATTORNEY GENERALDESIGNATE HE IS INVITING THE PUBLIC WHICH CALLED IN COMPLAINTS ABOUT HER TO THE WHITE HOUSE AND CONGRESS TO WRITE THE WHITE HOUSE WITH SUGGESTIONS ON HEALTHCARE REFORM AN ADMINISTRATION OFFICIAL SAID THERE IS TALK ABOUT HOLDING A DAYLONG PUBLIC FORUM TO DISCUSS HEALTH CARE SIMILAR TO THE ECONOMIC CONFERENCE MR CLINTON HELD IN LITTLE ROCK ARK IN DECEMBER MR CLINTON SAID HE EXPECTS STRONG OPPOSITION POWERFUL LOBBIES AND SPECIAL INTERESTS MAY SEEK TO DERAIL OUR EFFORTS HE SAID AND WE MAY MAKE SOME PEOPLE ANGRY BUT WE ARE DETERMINED TO COME UP WITH THE BEST POSSIBLE SOLUTION THE HEALTH TASK FORCE WILL INCLUDE MRS CLINTON MS RASCO MR MAGAZINER TREASURY SECRETARY LLOYD BENTSEN DEFENSE SECRETARY LES ASPIN COMMERCE SECRETARY RON BROWN LABOR SECRETARY ROBERT REICH DR SHALALA THE HEALTH AND HUMAN SERVICES SECRETARY VETERANS AFFAIRS SECRETARY JESSE BROWN LEON PANETTA THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ROBERT RUBIN THE ECONOMIC POLICY ADVISER AND LAURA TYSON THE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISORS SEPARATELY MR CLINTON PLANS TO MEET TODAY WITH BIPARTISAN CONGRESSIONAL LEADERS AND WITH HIS CABINET THIS WEEKEND AT CAMP DAVID GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID I THINK IT'S AN IMPORTANT OPPORTUNITY FOR THE PRESIDENT AND HIS CABINET TO GET STARTED FIND OUT WHERE THEY ARE AND MAKE THEIR PLANS FOR THE FIRST 100 DAYS 9301260087 930126 HEARD ON THE STREET FORMER BEARISH STRATEGIST SEEKS REINCARNATION AS BULLISH MANAGER OF NEW MIDSIZE STOCK FUND BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU TALK TO SURESH BHIRUD TODAY IT'S HARD TO BELIEVE HE'S THE SAME MARKET STRATEGIST WHO GOT BOUNCED OUT OF DEAN WITTER REYNOLDS IN APRIL 1991 FOR BEING TOO BEARISH TODAY HE'S A RAGING BULL ESPECIALLY ON MIDSIZE STOCKS HE'S STAKING HIS CAREER ON THEM LAUNCHING A MUTUAL FUND TO INVEST IN THOSE MIGHTY MIDCAPS FORMERLY A WELLKNOWN MARKET GURU AT DEAN WITTER OPPENHEIMER AND FIRST BOSTON MR BHIRUD IS ONLY THE LATEST OF A HANDFUL OF STRATEGISTS WHO HAVE STUCK THEIR NECKS OUT AND GONE INTO MONEY MANAGEMENT HE'S PART OF THE CURRENT MANIA FOR SMALLER AND MIDSIZE STOCKS THAT IS ATTRACTING BIG AND SMALL INVESTORS ALIKE MR BHIRUD SAYS THE BHIRUD MID CAP GROWTH FUND WILL FOCUS ENTIRELY ON THE MARKET'S MIDDLESIZE STOCKS GENERALLY STOCKS OF COMPANIES VALUED AT 200 MILLION TO 5 BILLION AND HE IS BUYING SOME STOCKS SUCH AS APPLIED MATERIALS EVEN THOUGH THEY ALREADY HAVE RISEN SHARPLY IN RECENT MONTHS THAT IS NOT A PROBLEM HE INSISTS THAT'S LESS RELEVANT THAN WHAT IS HAPPENING TO EARNINGS PROGRESSION MIDCAPS ATTRACT HIM MR BHIRUD SAYS BECAUSE THEY'RE BIG ENOUGH TO BE SOLID COMPANIES BUT ARE STILL DEVELOPING AND GROWING UNLIKE MANY LARGE FIRMS THESE DAYS EVEN TWO YEARS AGO I WOULDN'T HAVE BEEN ABLE TO SAY TO YOU THAT THE BIGCAPS WOULD UNDERPERFORM BUT IT SEEMS FOR THE LAST YEAR OR SO THAT THE BIGCAPS ARE CLEARLY UNDERPERFORMING AND IT'S NOT JUST IBM SO FAR MR BHIRUD HAS RAISED JUST 1 MILLION OF OUT OF HIS GOAL OF 50 MILLION TO 100 MILLION PERHAPS THAT'S BECAUSE HIS FUND CARRIES A STEEP 575 LOAD FOR INVESTMENTS ABOVE 50000 THIS SALES CHARGE DROPS BUT HE'LL SOON BEGIN A ROAD SHOW TO ATTRACT STOCKBROKERS TO HIS FUND AND HIS TRENDY IDEAS UNLIKE MANY WALL STREET STOCKPICKERS MR BHIRUD'S STYLE ISN'T TO SHOP FOR BARGAINS SO FAR HIS PURCHASES HAVE ALL BEEN STOCKS OF COMPANIES THAT HAVE HIGH EARNINGSGROWTH POTENTIAL THE NEXT TWO YEARS THESE INCLUDE IN ADDITION TO APPLIED MATERIALS THREE OTHER HIGH TECH COMPANIES CONNER PERIPHERALS ADVANCED MICRO DEVICES AND MICRON TECHNOLOGY CARPETMAKER SHAW INDUSTRIES AND DANAHER WHICH MAKES TOOLS AND CONTROLS ALL THE STOCKS ALREADY ARE TRADING AT OR NEAR 52WEEK HIGHS THE SAME APPLIES TO HARLEYDAVIDSON ONE OF THE MIDCAPS MR BHIRUD PLANS TO BUY WHEN INVESTORS GIVE HIM MORE MONEY TO INVEST TODAY'S STOCK PRICES PRESENT NO PROBLEM FOR MR BHIRUD THE FUND MANAGER I'M VERY VERY BULLISH ON THE MARKET HE SAYS EARNINGS ARE COMING THROUGH INTEREST RATES ARE GOING LOWER AND PRESIDENT CLINTON SEEMS TO HAVE LESS OF A STOMACH FOR MARKETDISRUPTING CHANGE THAN HE DID BEFORE THE ELECTION MR BHIRUD NOW PRESIDENT OF BHIRUD ASSOCIATES IN NEW YORK PREDICTS THAT THE AVERAGE STOCK WILL RISE 20 OR MORE IN THE NEXT 12 TO 18 MONTHS AND THE MIDCAPS WILL DO ESPECIALLY WELL SOME MIDCAP STOCKS ARE LISTED ON THE NEW YORK STOCK EXCHANGE OTHERS CAN BE FOUND IN THE NASDAQ OVERTHECOUNTER MARKET STRATEGISTS SUCH AS MR BHIRUD HAVE HAD MIXED SUCCESS IN ACTUALLY RUNNING MUTUAL FUNDS AS OPPOSED TO MERELY ADVISING OTHERS WHAT TO DO GURUS OFTEN FIND THAT ACTUAL PORTFOLIO MANAGEMENT IS A DIFFERENT BALL OF WAX SAYS LORI LUCAS OF MORNINGSTAR MUTUAL FUNDS A FUND ANALYSIS NEWSLETTER INVESTORS SHOULD JUST BE A LITTLE WARY ALLOW THEM TO GET A TRACK RECORD IN HER VIEW FOR EXAMPLE THE JURY IS STILL OUT ON THE YEAROLD DREYFUS GROWTH & INCOME FUND MANAGED BY WALL STREET ECONOMIST RICHARD B HOEY EVEN THOUGH THE FUND POSTED A TOTAL RETURN OF 202 FOR ITS FIRST YEAR DREYFUS BRANDS THAT STELLAR BUT MS LUCAS SAYS I'D STILL WAIT A LITTLE WHILE LONGER BEFORE DECLARING THE FUND A SUCCESS THE STOCKS MR BHIRUD'S FUND CAN BUY FALL WITHIN THE SAME PARAMETERS AS THE S&P 400 MIDCAP INDEX BUT MR BHIRUD KNOWN FOR HIS BLUNTNESS SAYS I WOULD CONSIDER MYSELF A FAILURE IF I JUST MATCH THE INDEX HE'D LIKE TO OUTPERFORM IT BY FIVE PERCENTAGE POINTS HOW MR BHIRUD DESCRIBES HIS VERY DISCIPLINED APPROACH TO STOCK PICKING THIS INCLUDES A PROPRIETARY EARNINGSMOMENTUM MODEL THAT SEEKS TO IDENTIFY THE BEST 20 OF MIDCAP STOCKS BASED ON EARNINGS PROSPECTS DIVIDENDS AND SUCH I DON'T BUY A STOCK BECAUSE SOME WALL STREET FIRM IS PUSHING IT HE SAYS MR BHIRUD IS STILL TRYING TO HOOK UP WITH MAJOR BROKERAGE FIRMS TO DISTRIBUTE HIS FUND HE'LL GET A FAIRLY TYPICAL 1 OF THE FUND'S ASSETS ANNUALLY AS AN ADVISORY FEE ABOUT 1 MILLION A YEAR IF HE RAISES AS MUCH AS HE HOPES ONE PAGE OF THE PROSPECTUS MAKES THE STARTLING CLAIM THAT HIS FEE WILL BE 1 A MONTH THAT'S A TYPOGRAPHICAL ERROR SAYS MR BHIRUD WHO PROMISES WE'LL FIX IT ON THE NEXT PRINTING 9301260086 930126 LEISURE & ARTS DANCE BRINGING BALLET TO THE BRITISH MASSES BY PAUL LEVY LONDON OPERA HAS GONE POP IN BRITAIN LUCIANO PAVAROTTI IS A TEENAGE HEARTTHROB NESSUN DORMA REACHED THE TOP OF THE RECORD CHARTS AND PRODUCTIONS SUCH AS THE GIGANTESQUE AIDA OF TWO YEARS AGO STAGED AT THE EARL'S COURT EXHIBITION CENTER HERE RATHER THAN IN AN OPERA HOUSE HAVE REACHED NEW AUDIENCES INDEED THEY'VE CREATED NEW AUDIENCES AND ARE ATTRACTING PEOPLE TO BUY OPERA TICKETS WHO FORMERLY THOUGHT AN ARIA WAS A JAPANESE CAR NOW A POPCONCERT PROMOTER DEREK BLOCK IS ATTEMPTING TO DO THE SAME FOR BALLET HE HAS BROUGHT THE BOLSHOI BALLET COMPANY TO LONDON FROM MOSCOW FOR DAILY PERFORMANCES AT THE CAVERNOUS ROYAL ALBERT HALL UNTIL FEB 14 TRUE IT'S NOT THE FIRST TIME LONDON HAS HAD A VISIT FROM THE BOLSHOI BUT IN ORDER TO BRING BALLET TO THE PEOPLE MR BLOCK HAS SCHLEPPED 160 MEMBERS OF THE CORPS DE BALLET 120 TECHNICIANS TWO DOCTORS THREE PHYSIOTHERAPISTS AND EIGHT DRESSERS FROM RUSSIA ALONG WITH TWO TRUCKLOADS OF COSTUMES AND BALLET SHOES 60 RAILS OF COSTUMES AND HALF A TON OF MUSICAL SCORES HE HAS ALSO REBUILT THE INTERIOR OF THE ALBERT HALL TO MAKE IT SUITABLE FOR BALLET PERFORMANCES TURNING THE 1867 CIRCULAR AUDITORIUM INTO A PROSCENIUMARCH THEATER THE ARENA FLOOR HAS BEEN CONVERTED INTO THE LARGEST DANCE FLOOR IN EUROPE WITH THE INSTALLATION OF A DOUBLESPRUNG RAKED SURFACE MEASURING 59 FEET WIDE BY 86 FEET DEEP THE PROSCENIUM ARCH IS SUSPENDED FROM TWO METAL GRIDS 100 FEET ABOVE THE FLOOR AND IS SURROUNDED BY A CLOTH FACADE 132 FEET ACROSS AND WEIGHING 2 1/2 TONS IT WAS PAINTED IN RUSSIA AND DEPICTS THE INTERIOR OF THE REAL BOLSHOI THEATER WITH CANDELABRA DONE IN REFLECTIVE PAINT THAT MAKES THE CANDLES IN THEM SEEM TO GLOW AND FLICKER OVER THE ARCH IS THE DOUBLEHEADED IMPERIAL EAGLE REPRESENTING THE CZAR'S ROYAL BOX IT IS NOT HARD TO DISCOVER WHY YURI GRIGOROVICH ARTISTIC DIRECTOR AND PRINCIPAL CHOREOGRAPHER OF THE BOLSHOI ACCEPTED MR BLOCK'S INVITATION THE COMPANY IS PENNILESS AND IF IT IS GOING TO OPERATE IN THE MODERN WORLD IT HAS TO HAVE SUCH THINGS AS COMPUTERIZED LIGHTING CONSOLES AND OTHER THEATER EQUIPMENT THAT MUST BE BOUGHT ABROAD FOR HARD CURRENCY TOURING THEN IS THE BOLSHOI'S ONLY MEANS OF SURVIVAL TOURING IN THE MOST BLATANT AND MASSORIENTED WAY POSSIBLE MR GRIGOROVICH HAS ENTERED INTO THE SPIRIT OF THIS ATTEMPT AT BALLET FOR THE MASSES BY DEVISING READERS' DIGEST CONDENSED VERSIONS OR SUITES AS HE CALLS THEM OF SOME OF THE BESTKNOWN AND BESTLOVED WORKS IN THE BOLSHOI'S REPERTORY THIS HAS ANNOYED THE LONDON BALLET CRITICS WHO HAVE SNOOTILY SAID THAT THEY DO NOT THINK THAT PRESENTING AN ENTIRE SEASON OF LOLLIPOPS WILL CREATE A LASTING NEW AUDIENCE FOR SERIOUS DANCE THE ONLY WORK BEING PRESENTED IN ITS ENTIRETY IS GISELLE AND IT HAS TO BE SAID THAT THE ROMEO AND JULIET SUITE THE SLEEPING BEAUTY SUITE AND THE SPARTACUS SUITE ARE UNLIKELY TO SATISFY THE APPETITES OF THOSE WHO ALREADY HAVE A TASTE FOR BALLET WHILE THE LESS FAMILIAR GOLDEN AGE SUITE IN WHICH THE COMPOSER DMITRI SHOSTAKOVICH TREATS THE AUDIENCE TO A LONG GOODHUMORED TANGO RENDITION OF TEA FOR TWO HERE STAGED AGAINST A TERRIFIC PAINTED CONSTRUCTIVISTSTYLE BACKDROP LEFT ME WANTING MORE THIS POLICY DOES MEAN THAT YOU GET TO SEE A LOT OF DANCERS STRUTTING THEIR STUFF IN THREE DIFFERENT WORKS AT MOST OF THE PERFORMANCES BUT THE DANCING IS NEVER AS ELECTRIFYING OR EVEN INTERESTING AS ONE'S MEMORIES OF THE OLD BOLSHOI COMPANY THE MALE DANCERS ARE CHUNKY HUNKS OF BEEFCAKE WHO DOUBTLESS APPEAL TO AUDIENCES MORE USED TO THE WILLOWY BOYS OF THE CORPS DE BALLET OF THE VARIOUS BRITISH COMPANIES AND THEIR EFFORTLESS ATHLETICISM IMPRESSES SIMILARLY THE FEMALE DANCERS HAVE A WELLDRILLED PROFESSIONALISM THAT IS RELAXING TO WATCH BUT THE SOLOISTS ARE DISTINCTLY LACKING IN THE MATERIAL OF WHICH STARS ARE MADE NINA SEMIZOROVA IS ALLOWED TO DEPART FROM MR GRIGOROVICH'S PEDESTRIAN CHOREOGRAPHY AND DANCE MARIUS PETIPA'S ADAGIO FOR ODILE IN ACT III OF SWAN LAKE PERFORMED IN AN IDIOSYNCRATIC UNMOONLIT VERSION UNHAPPILY SHE CAN'T HELP REMINDING SOMEONE MY AGE OF SID CAESAR'S YOUR SHOW OF SHOWS AS SHE IS A DEAD RINGER FOR IMOGENE COCA SKINNY ARMS AND LEGS AND ALL THOUGH SHE WAS FAR AND AWAY THE FINEST DANCER THE EVENING I ATTENDED WITH A SERIES OF FOUETTES OF A FLUENCY MORE NORMALLY SEEN AT THE ICE RINK ROTHBART DANCED BY SERGEI BOBROV IS FOR ONCE NOT DRESSED IN BLACK BUT EVEN AT HIS MOST MALEVOLENT HE RESEMBLES A CUDDLY BAT AS SIEGFRIED MARK PERETOKIN'S JETES MAKE UP IN ENTHUSIASM WHAT THEY LACK IN PRECISION YOU CAN SEE WHY THE PRESS NOTES SAY ABOUT MR GRIGOROVICH THAT BY WESTERN STANDARDS HE HAS NOT BEEN OVERLY PRODUCTIVE AS A CHOREOGRAPHER ON RETURNING HOME FROM THE ALBERT HALL I HAPPENED TO SWITCH ON THE TV AND SEE EXACTLY THE SAME PASSAGE OF ROMEO AND JULIET THAT I HAD JUST WITNESSED IN MR GRIGOROVICH'S PROGRAM WHERE IT HAD BEEN THE HIGH POINT OF THE EVENING BUT THIS WAS THE BBC'S OBITUARY TRIBUTE TO RUDOLF NUREYEV AND FEATURED HIM AND MARGOT FONTEYN IN THE LATE KENNETH MACMILLAN'S PRODUCTION IT WAS THE DIFFERENCE BETWEEN THE MERELY GOOD AND THE SUBLIME I SUPPOSE THE BOLSHOI CAN'T BE BLAMED FOR FAILING TO ACHIEVE PERFECTION BUT THIS WAS A PARTICULARLY MELANCHOLY DEMONSTRATION THAT THE BEST REALLY IS BETTER SO HAS MR BLOCK REALIZED HIS AIM OF BRINGING A NEW AUDIENCE TO THE BALLET SITTING AROUND ME IN THE MOST EXPENSIVE 100 SEATS WAS AN AUDIENCE YOU WOULD PROBABLY NOT SEE WATCHING THE ROYAL BALLET AT COVENT GARDEN THEY WERE FROM THE SUBURBS AND IN THEIR GOLDLAME GOWNS AND IRIDESCENT TUXEDOS THEY WOULD HAVE BEEN OVERDRESSED FOR A FIRST NIGHT AT WHICH ROYALTY WAS PRESENT BUT THERE WAS NO SIGN OF HEAVYMETAL AND ROCK FANS EVEN IN THE CHEAPEST 2250 STANDING GALLERY THERE WERE HOWEVER SOME FRESHFACED GIRLS AND BOYS UP FROM THE COUNTRY LOOKING UNCOMFORTABLE AT BEING IN LONDON AND IN SERIOUS CULTURAL NEED OF A DOSE OF TWEEDKILLER 9301260085 930126 TRINITY INDUSTRIES DEBENTURES DALLAS TRINITY INDUSTRIES INC AND A SUBSIDIARY SAID THEY WILL REDEEM TWO DEBENTURE ISSUES IN LATE FEBRUARY FOR 948 MILLION THE MAKER OF RAIL CARS MARINE PRODUCTS AND CONTAINERS SAID IT WILL REDEEM ITS 7 MILLION OF VARIABLE RATE CONVERTIBLE SUBORDINATED DEBENTURES DUE 2004 ON FEB 24 FOR 1055 OF THE FACE AMOUNT OR ABOUT 74 MILLION THE COMPANY'S TRINITY INDUSTRIES LEASING CO UNIT WILL REDEEM ITS 845 MILLION OF 675 CONVERTIBLE DEBENTURES DUE 2012 ON FEB 25 FOR 103375 OR 874 MILLION UNTIL THE REDEMPTION DATES THE PARENT COMPANY'S DEBENTURES ARE CONVERTIBLE INTO STOCK AT A RATE OF 4365 COMMON SHARES FOR EACH 1000 OF DEBENTURES WHILE THE UNIT'S DEBENTURES WILL BE CONVERTIBLE AT A RATE OF 30651 COMMON SHARES FOR EACH 1000 OF DEBENTURES 9301260084 930126 INTERNATIONAL JAPAN BUYING ITS OWN BONDS IN OPEN MARKET INTERVENTION SEEN AS EFFORT TO TRIM RATES DESPITE CENTRAL BANK RESISTANCE BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN AN APPARENT TURF WAR WITH THE BANK OF JAPAN THE JAPANESE FINANCE MINISTRY IS BOLDLY INTERVENING IN THE TOKYO BOND MARKET IN WHAT TRADERS SAY IS A UNILATERAL EFFORT TO DRIVE DOWN INTEREST RATES OFFICIALS AT THE TRUST FUND BUREAU OF THE FINANCE MINISTRY HAVE BEGUN BUYING 100 BILLION YEN 800 MILLION A MONTH OF JAPANESE GOVERNMENT BONDS DIRECTLY IN THE MARKET THE BUREAU HAS BOUGHT BONDS DIRECTLY FROM THE BANK OF JAPAN THE COUNTRY'S CENTRAL BANK FOR YEARS BUT NEVER BEFORE FROM PRIVATE DEALERS IN THE SECONDARY MARKET A FIRST PURCHASE LAST WEEK INSTANTLY BOOSTED AN ALREADY IMPRESSIVE GOVERNMENT BOND RALLY THE LOWER INTEREST RATES RESULTING FROM THE RALLY COULD LOWER FINANCING COSTS FOR MANY OF JAPAN'S TROUBLED CORPORATE BORROWERS INDEED MANY TRADERS BELIEVE THAT IS THE FINANCE MINISTRY'S OBJECTIVE THE BANK OF JAPAN HAS RESISTED EASING INTEREST RATES THAT'S WHY SOME TRADERS THINK THEY ARE WITNESSING A TURF BATTLE FINANCE MINISTRY BUYING HELPED PUSH DOWN THE YIELD ON THE BENCHMARK JAPANESE GOVERNMENT BOND BY MORE THAN ONETENTH OF A PERCENTAGE POINT TO 434 SINCE WORD ABOUT THE PURCHASES BEGAN CIRCULATING MANY JAPANESE CORPORATE BORROWERS PEG THEIR BORROWING COSTS TO GOVERNMENT BOND YIELDS SO THE FINANCE MINISTRY GAVE THE COMPANIES SOMETHING THAT THE BANK OF JAPAN WITH ITS TIGHT GRIP ON THE 325 PRIME RATE HASN'T SO FAR BEEN WILLING TO PROVIDE TO THE NATION'S RECESSIONWRACKED ECONOMY LOWER FINANCING COSTS SPECULATION CONTINUES THAT THE CENTRAL BANK IS PREPARING TO EASE INTEREST RATES THE SPECULATION HAS INCREASED SINCE THE FINANCE MINISTRY INTERVENED IN THE BOND MARKET THE MINISTRY'S BUYING SPREE WASN'T LOST ON TRADERS ANYBODY WHOSE LIABILITIES ARE PEGGED TO THE LONGTERM PRIME RATE BENEFITED FROM LAST WEEK'S PURCHASES SAYS A SENIOR BOND TRADER AT ONE OF TOKYO'S BIGGEST SECURITIES FIRMS THE MINISTRY SENT A MESSAGE TO THE MARKET THAT THEY WANT LOWER FINANCING COSTS IT ISN'T THE ONLY MESSAGE THE GOVERNMENT HAS BEEN SENDING LATELY IT HAS ALSO BEEN BUYING LARGE AMOUNTS OF SHARES IN WHAT TRADERS SAY IS AN EFFORT THE BOLSTER THE TOKYO STOCK MARKET THOUGH THE FINANCE MINISTRY DENIES THAT IT IS TRYING TO MAKE INTERESTRATE POLICY IT CLEARLY STANDS TO GAIN ITSELF IF RATES DROP IF THE WEAK JAPANESE ECONOMY NEEDS A NEW SHOT OF GOVERNMENT SPENDING IN COMING MONTHS THE MINISTRY MAY HAVE TO ISSUE ITS FIRST DEFICITFINANCING BONDS IN YEARS LOWER INTEREST RATES WOULD EASE THE COST TO THE GOVERNMENT OF ISSUING THOSE BONDS THE FINANCE MINISTRY ACTUALLY HAS STATUTORY POWER OVER JAPAN'S CENTRAL BANK THOUGH IT RARELY IF EVER EXERCISES IT THE MINISTRY ALSO OWNS A 55 STAKE IN THE BANK A SPOKESMAN FOR THE BANK OF JAPAN ADMITS THAT THE MINISTRY IS AUTHORIZED TO FORCE THE CENTRAL BANK TO CHANGE POLICY UNDER EXTREME CIRCUMSTANCES BUT ADDS THAT'S JUST BASED ON LAW IT NEVER HAPPENS SOME TRADERS ALSO BELIEVE THAT INSTEAD OF JUST LOWERING INTEREST RATES THE MINISTRY HAS ANOTHER GOAL IN MIND STIMULATING THE SHAKY JAPANESE STOCK MARKET IF BOND RATES DROP INVESTORS MIGHT TURN TO STOCKS IN HOPES OF BETTER RETURNS BUT SO FAR THAT DOESN'T SEEM TO BE WORKING THE STOCK MARKET CONTINUES TO SAG ORIGINALLY THEY THOUGHT THEY COULD HELP THE EQUITY MARKET WITH THIS BUT THAT DIDN'T WORK CLAIMS GEN YAMAGUCHI A MANAGER IN THE PRIMARYMARKETS DIVISION AT NIKKO SECURITIES CO FEW BELIEVE THE FINANCE MINISTRY'S OFFICIAL REASON FOR THE BUYING MINISTRY OFFICIALS SAID IT GIVES THEM NEW INVESTMENTS FOR THE TRUST FUND WHICH CONSISTS OF MONEY DEPOSITED BY INDIVIDUALS IN JAPAN'S POSTAL SAVINGS SYSTEM SINCE THE TRUST FUND BUREAU ALREADY HOLDS ABOUT 64 TRILLION YEN IN GOVERNMENT BONDS IT BOUGHT DIRECTLY FROM THE BANK OF JAPAN TRADERS SAY THEY AREN'T CONVINCED THAT THE MINISTRY SAW BONDS AS A NEW INVESTMENT OPTION A SENIOR MEMBER OF THE TRUST FUND BUREAU ADDS THAT THE MINISTRY HAS A CONVENTIONAL POLICY TO PURCHASE BONDS THAT CAN'T BE DIGESTED IN THE MARKET YET THE GOVERNMENT BOND MARKET IS IN THE MIDST OF A STUNNING RALLY THAT SHOWS NO SIGN OF LETTING UP IF YOU'VE BEEN IN THE BENCHMARK BOND FOR JUST THE PAST FOUR WEEKS YOU'VE MADE AN ANNUALIZED 25 RETURN SAYS MARSHALL GITTLER FIXEDINCOME STRATEGIST AT MERRILL LYNCH JAPAN INC MR GITTLER BELIEVES THE RALLY WILL CONTINUE FOR SEVERAL MONTHS THE FINANCE MINISTRY IS EXPECTED TO HAVE A BIGGER IMPACT ON THE BOND MARKET THAN A NORMAL 100BILLIONYENAMONTH INVESTOR WOULD SINCE THE TRUST FUND BUREAU DOESN'T SELL THE BONDS IT BUYS THE BANK OF JAPAN ISSUES ABOUT 800 BILLION YEN A MONTH OF BONDS TO THE SECONDARY MARKET SO THE TRUST FUND BUREAU'S MONTHLY PURCHASES WILL AMOUNT TO 125 OF THE NEW MONTHLY SUPPLY OF BONDS THE PURCHASES COULD BE EVEN HIGHER IF THE GOVERNMENT CONTINUES TO EXCEED ITS MONTHLY TARGET THIS WEEK'S PURCHASES WERE ACTUALLY JUST UNDER 120 BILLION YEN TRADERS SAY OR 20 BILLION YEN MORE THAN THE TRUST FUND BUREAU'S TARGET 9301260083 930126 BUSINESS BRIEF ALZA CORP COMPANY POSTS 198 MILLION IN NET FOR FOURTH QUARTER BOOSTED BY ROYALTIES FROM ITS NICOTINE PATCHES AND OTHER PHARMACEUTICAL PRODUCTS ALZA CORP POSTED FOURTHQUARTER NET INCOME OF 198 MILLION OR 25 CENTS A SHARE THAT COMPARES WITH A LOSS OF 884 MILLION OR 123 A SHARE IN THE YEAREARLIER QUARTER MOST OF WHICH WAS DUE TO A 1013 MILLION CHARGE RELATED TO THE PALO ALTO CALIF COMPANY'S ACQUISITION OF BIOELECTRO SYSTEMS INC AND A RESTRUCTURING REVENUE FOR THE QUARTER CLIMBED 30 TO 679 MILLION FROM 522 MILLION A YEAR EARLIER DRIVEN BY THE SUCCESS OF NICODERM A NICOTINE PATCH FOR SMOKERS AND PROCARDIA A CARDIOVASCULAR PRODUCT REVENUE FOR THE YEAR ROSE 54 TO 2505 MILLION FROM 1623 MILLION IN 1991 NET WAS 722 MILLION REVERSING A 1991 LOSS OF 621 MILLION 9301260082 930126 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JANUARY 13 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9301260081 930126 ECONOMY ADMINISTRATION HAS HARD TIME FILLING KEY TREASURY AND COMMERCE POSITIONS BY RICK WARTZMAN AND BOB DAVIS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS HAVING A TOUGH TIME FILLING THE TOP TAX POSITION AT THE TREASURY THREATENING TO BOG DOWN THE PRESIDENT'S ECONOMIC PLANS SIMILAR PROBLEMS DOG THE COMMERCE DEPARTMENT WHICH HAS BEEN RECRUITING BIGNAME TRADE AND TECHNOLOGY EXECUTIVES FROM INDUSTRY WITHOUT MUCH LUCK THE ADMINISTRATION IS NEGOTIATING WITH JOHN ROLLWAGEN CHIEF EXECUTIVE OF SUPERCOMPUTERMAKER CRAY RESEARCH INC TO TAKE THE NO 2 SLOT AT THE DEPARTMENT AND IT HAS OFFERED GOLDMAN SACHS & CO EXECUTIVE ROBERT HORMATS THE POSITION OF UNDERSECRETARY FOR INTERNATIONAL TRADE NEITHER MAN HAS AGREED YET TO TAKE THE JOBS A THIRD HIGHTECH EXECUTIVE CRAIG FIELDS IS EXPECTED TO TURN DOWN THE COMMERCE DEPARTMENT'S TOP TECHNOLOGY POST BECAUSE HE WANTS TO REMAIN AS HEAD OF MICROELECTRONICS & COMPUTER TECHNOLOGY CORP A PRIVATE RESEARCH GROUP IN AUSTIN TEXAS A DEPARTMENT SPOKESMAN SAID NO FORMAL OFFERS HAVE BEEN MADE AT TREASURY THE SEARCH IS CONTINUING FOR AN ASSISTANT SECRETARY FOR TAX POLICY A JOB THAT IS PARTICULARLY CRUCIAL AS PRESIDENT CLINTON WEIGHS VARIOUS TAX INCREASES AS A CENTRAL PART OF HIS ECONOMIC PACKAGE SEVERAL PROMINENT ATTORNEYS HAVE TAKEN THEMSELVES OUT OF THE RUNNING ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION AMONG THE DIFFICULTIES IN FINDING A TAXPOLICY CHIEF HAVE BEEN THE ADMINISTRATION'S NEW ETHICS RULES WHICH PROHIBIT TOP APPOINTEES FROM LOBBYING THEIR AGENCIES FOR FIVE YEARS AFTER LEAVING THEIR JOBS THIS RESTRICTION ACCORDING TO TREASURY OFFICIALS CREATES A UNIQUE PROBLEM FOR A LAWYER WHO HAD SERVED AS ASSISTANT SECRETARY BECAUSE IT WOULD PREVENT THAT PERSON FROM INTERACTING WITH THE INTERNAL REVENUE SERVICE AFTER RETURNING TO PRIVATE PRACTICE ONE OF THE PRIME CANDIDATES STILL UNDER CONSIDERATION ATLANTA LAWYER JEROLD COHEN WAS IN WASHINGTON TO MEET WITH DEPUTY TREASURY SECRETARY ROGER ALTMAN ACCORDING TO PEOPLE AWARE OF THE DISCUSSIONS THESE PEOPLE SAID THAT MR COHEN WHO IS 57 YEARS OLD TOLD MR ALTMAN THAT HE WOULD BE RELUCTANT TO ACCEPT THE JOB AS ASSISTANT SECRETARY UNLESS THERE WAS SOME WAY AROUND THE BAN MR COHEN WHO SERVED AS CHIEF COUNSEL AT THE IRS DURING THE CARTER ADMINISTRATION DECLINED TO COMMENT FIVE YEARS IS A LONG TIME NOT TO TALK TO THE IRS IF YOU'RE A TAX LAWYER SAID MICHAEL GRAETZ A YALE LAW SCHOOL PROFESSOR WHO WAS THE DEPUTY ASSISTANT SECRETARY FOR TAX POLICY UNDER PRESIDENT BUSH SEVERAL TAX ATTORNEYS SUGGESTED THAT TREASURY SECRETARY LLOYD BENTSEN AND MR ALTMAN MAY BE TAKING THEIR TIME WITH THE TAX APPOINTMENT PARTLY BECAUSE IT IS SUCH AN IMPORTANT JOB AND THE POST WHICH IS BEGINNING TO TAKE ON A SHOPWORN FEEL AS MORE AND MORE PEOPLE ARE BEING CONSIDERED COULD STILL BE FILLED ANY DAY NONETHELESS TREASURY SPOKESMAN JACK DEVORE ACKNOWLEDGED THAT THE FIVEYEAR BAN WAS CREATING PROBLEMS HE SAID HE WAS AWARE THAT AT LEAST ONE OF THE INDIVIDUALS WHO WAS CONTACTED ABOUT THE TAX JOB HAD EXPRESSED CONCERN ABOUT THE RESTRICTION WHEN THE TREASURY ANNOUNCED FOUR ASSISTANT SECRETARIES FRIDAY ADDING TO A LIST OF APPOINTMENTS THAT ALREADY WAS FAR AHEAD OF OTHER DEPARTMENTS THE TAX POLICY JOB WAS CONSPICUOUSLY ABSENT SOME PEOPLE CLOSE TO THE PROCESS INDICATED THAT TREASURY OFFICIALS WERE LOOKING INTO THE POSSIBILITY THAT THE BAN WOULDN'T APPLY TO APPEARANCES BEFORE THE IRS BUT MR DEVORE SAID THAT IT UNDOUBTEDLY WOULD SOMEONE WOULD HAVE TO TAKE THE JOB WITH THAT EXPECTATION HE ASSERTED AS A RESULT THE TREASURY HAS MULLED NAMING AN OLDER ATTORNEY AS ASSISTANT SECRETARY WITH THE IDEA THAT SUCH A PERSON MIGHT RETIRE AFTER SERVING IN THE GOVERNMENT RATHER THAN RETURNING TO A LAW FIRM LAST WEEK THE TAX COMMUNITY WAS ABUZZ THAT M CARR FERGUSON A 61YEAROLD NEW YORK ATTORNEY WHO WORKED IN THE CARTER JUSTICE DEPARTMENT HAD BEEN INTERVIEWED YESTERDAY MR FERGUSON WOULDN'T COMMENT OTHER THAN TO SAY I AM NOT UNDER CONSIDERATION M BERNARD AIDINOFF A 63YEAROLD NEW YORK LAWYER WAS ALSO SAID TO BE A CANDIDATE AT ONE POINT BUT ISN'T ANY LONGER THE FIVEYEAR BAN MAY NOT BE THE ONLY REASON THE SEARCH WAS SLOW SOME POTENTIAL APPOINTEES PRIVATELY HAVE VOICED CONCERNS THAT MR BENTSEN SEEMS INTENT ON BRINGING IN STAFF FROM THE SENATE FINANCE COMMITTEE WHERE HE SERVED AS CHAIRMAN TO FILL SENIOR SLOTS IN THE TREASURY TAX OFFICE IN THE PAST THE ASSISTANT SECRETARY HAS BEEN ABLE TO BRING IN MANY OF HIS OWN PEOPLE SAMUEL SESSIONS WHO WAS CHIEF TAX COUNSEL ON THE FINANCE COMMITTEE ALREADY HAS COME TO WORK AT THE TREASURY AND HE IS WIDELY EXPECTED TO BE NAMED TO ONE OF THE TOP JOBS IN THE TAX OFFICE MR BENTSEN IS SAID TO BE EAGER TO BRING IN AT LEAST THREE OTHER LAWYERS FROM THE COMMITTEE TO WORK ALONGSIDE MR SESSIONS MR DEVORE PLAYED DOWN THE NOTION THAT MR BENTSEN'S STRONG ROLE IN SHAPING THE TAX STAFF COULD BE SCARING OFF CANDIDATES FOR ASSISTANT SECRETARY MR BENTSEN IS GOING TO CHOOSE A FEW OF THOSE PEOPLE AND LET THE ASSISTANT SECRETARY CHOOSE A FEW HE SAID THE PROBLEM OF FILLING TOP JOBS AT THE COMMERCE DEPARTMENT REFLECTS BROAD CONCERN IN INDUSTRY THAT THE ADMINISTRATION WON'T BE ABLE TO TRANSFORM THE BUREAUCRATIC BACKWATER INTO THE LEAD AGENCY ON COMPETITIVENESS ISSUES AS PRESIDENT CLINTON WANTS MR CLINTON'S FIRST CHOICE FOR COMMERCE SECRETARY JOHN YOUNG THE RETIRED CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO TURNED DOWN THE JOB CITING POSSIBLE CONFLICTS OF INTEREST BECAUSE OF HIS LARGE STOCKHOLDINGS PRIVATELY THOUGH HE WAS DUBIOUS THE AGENCY COULD BECOME A MAJOR PLAYER A COMMERCE DEPARTMENT SPOKESMAN SAID THE AGENCY WAS CONFIDENT IT WOULD GET TOPFLIGHT TALENT IT WILL BE A TREMENDOUS UNDERTAKING TO TURN THIS AGENCY INTO A POWERHOUSE HE SAID BUT IT CAN BE DONE ALSO YESTERDAY PRESIDENT CLINTON SIGNED AN EXECUTIVE ORDER FORMALLY CREATING HIS NATIONAL ECONOMIC COUNCIL WHICH HE WILL HEAD THE 18 MEMBERS INCLUDE THE VICE PRESIDENT AND THE SECRETARIES OF STATE TREASURY AGRICULTURE COMMERCE LABOR HOUSING TRANSPORTATION AND ENERGY AS WELL AS THE WHITE HOUSE BUDGET DIRECTOR THE US TRADE REPRESENTATIVE THE ADMINISTRATOR OF THE ENVIRNMENTAL PROTECTION AGENCY AND THE HEAD OF THE COUNCIL OF ECONOMIC ADVISERS THE ASSISTANTS TO THE PRESIDENT FOR ECONOMIC POLICY DOMESTIC POLICY NATIONAL SECURITY AND SCIENCE ARE ALSO ON THE COUNCIL WHEN NEITHER MR CLINTON NOR VICE PRESIDENT ALBERT GORE IS PRESENT THE PRESIDENT'S ECONOMIC ADVISER ROBERT RUBIN WILL RUN THE COUNCIL'S MEETINGS BUT THE EXECUTIVE ORDER UNDERSCORES MR RUBIN'S INTENTION OF KEEPING A LOW PROFILE IT DESIGNATES TREASURY SECRETARY BENTSEN AS THE SENIOR ECONOMIC OFFICIAL IN THE EXECUTIVE BRANCH AND THE PRESIDENT'S CHIEF ECONOMIC SPOKESPERSON AND BUDGET DIRECTOR LEON PANETTA AS THE PRESIDENT'S PRINCIPAL BUDGET SPOKESPERSON 9301260080 930126 CBOT AGREES TO ACQUIRE THE FALTERING COMEX MOVE MAY SPUR MORE EXCHANGES TO CONSOLIDATE BY ANITA RAGHAVAN AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE CHICAGO BOARD OF TRADE'S MOVE TO ACQUIRE NEW YORK'S COMMODITY EXCHANGE MAY SIGNAL THE START OF A ROUND OF MERGERS AMONG US COMMODITY EXCHANGES AS THEY STRUGGLE TO SURVIVE IN AN INCREASINGLY COMPETITIVE ENVIRONMENT US COMMODITY EXCHANGES WHICH TRADE EVERYTHING FROM OIL TO STOCKINDEX FUTURES ARE FACING STEPPEDUP PRESSURE FROM POWERFUL NEW COMPETITORS INCLUDING BIG WALL STREET INVESTMENT FIRMS AND COMMERCIAL BANKS THAT WRITE THEIR OWN TAILORMADE OPTIONS AND FUTURE CONTRACTS AT THE SAME TIME FASTGROWING OVERSEAS COMMODITY EXCHANGES IN EUROPE AND JAPAN ARE SIPHONING TRADING VOLUME FROM THE US EXCHANGES BY OFFERING COMPETITIVE PRODUCTS AND LESS REGULATED MARKETS BUT THE COMEX AND OTHER NEW YORK FUTURES EXCHANGES THE BIG NEW YORK MERCANTILE EXCHANGE AND SMALLER COFFEE SUGAR AND COCOA EXCHANGE COTTON EXCHANGE AND NEW YORK FUTURES EXCHANGE HAVE BEEN CRIPPLED BY YEARS OF FEUDING AMONG THEMSELVES INSTEAD OF LOCKING ARMS AND COOPERATING THE NEW YORK EXCHANGES HAVE BEEN FIGHTING AGAINST EACH OTHER FOR YEARS SAYS LESLIE ROSENTHAL CHAIRMAN OF QUANTUM FINANCIAL SERVICES MEANWHILE CHICAGO'S BIGGER AND MORE AGILE EXCHANGES THE CBOT AND THE CHICAGO MERCANTILE EXCHANGE HAVE ADAPTED TO THE INCREASINGLY BRUTAL ENVIRONMENT BY DEVELOPING NEW CONTRACTS AND JOINING IN COOPERATIVE EFFORTS TO WREST MORE TRADING AWAY FROM EXCHANGES OUTSIDE OF CHICAGO THE PROPOSED MERGER OF THE CBOT AND THE COMMODITY EXCHANGE OR COMEX CERTAINLY PUTS GREATER PRESSURE ON OTHER EXCHANGES TO CONSOLIDATE WHETHER YOU CALL IT A MERGER OR GREATER SHARING OF INFORMATION FACILITIES SAYS TOM RUSSO A SECURITIES AND COMMODITIES LAWYER WHO IS NOW A MANAGING DIRECTOR AT LEHMAN BROTHERS INC THE COMEX HAS BEEN PARTICULARLY VULNERABLE TO STALE MARKETS BUILT ON ONCELUCRATIVE CONTRACTS FOR GOLD AND SILVER THE COMEX HAS TO SOME EXTENT BEEN THE VICTIM OF THE FEDERAL RESERVE'S UNRELENTING BATTLE AGAINST INFLATION THE VOLCKER AND GREENSPAN REGIMES AT THE CENTRAL BANK HAVE PUSHED TOUGH POLICIES THAT HAVE REDUCED INFLATION AND THUS DEMAND FOR INFLATION HEDGES SUCH AS GOLD AND SILVER FUTURES AND OPTIONS THE TWO MOST IMPORTANT SOURCES OF REVENUE FOR THE COMEX AT THE SAME TIME FALLING INTEREST RATES HAVE INTENSIFIED TRADING IN THE INNOVATIVE FINANCIALFUTURES CONTRACTS SUCH AS THE CBOT'S HUGE LONGTERM TREASURY BOND CONTRACT AND THE CHICAGO MERC'S STOCKINDEX FUTURES FOR 10 TO 15 YEARS COMEX WAS AT THE TOP WHEN METALS WERE KING OF THE HILL SAYS ONE SENIOR MEMBER OF THE NEW YORK MERC BUT THEY NEVER PLANNED FOR THE FUTURE HE ADDED THAT COMEX MEMBERS WERE ALSO TOO PROUD TO MAKE A DEAL WITH ANY OF THE NEW YORK EXCHANGES THERE WERE ALWAYS TURF BATTLES OF COURSE NO ONE CAN GUARANTEE THAT INFLATION WILL REMAIN BENIGN INDEED SOME WONDER IF THE CBOT ITSELF ISN'T MAKING AN ASTUTE TRADE SPECULATING THAT DEMAND FOR SUCH INFLATION HEDGES AS GOLD AND SILVER WILL RETURN OR THAT DEMAND FOR INTERESTRATE FUTURES ONE OF ITS MAINSTAYS WILL DECREASE IF THE CLINTON ADMINISTRATION CAN SLASH THE FEDERAL DEFICIT CBOT CHAIRMAN PAT ARBOR IS BUYING INTO COMEX WHEN THE PRICE IS RIGHT SAID JOHN DAMGARD PRESIDENT OF THE FUTURES INDUSTRY ASSOCIATION A TRADE GROUP WHILE THE COMEX HAS BEEN SLOWLY SINKING UNDER THE WEIGHT OF DECLINING TRADING VOLUME THE CBOT HAS MANAGED TO OFFSET SLOW GROWTH IN ITS AGRICULTURAL TRADING WHEAT CORN AND SOYBEANS WITH ITS EXPANSION INTO SOPHISTICATED FINANCIALFUTURES PRODUCTS CBOT TRADERS SPECULATE DAILY IN FUTURES CONTRACTS FOR SUCH VOLATILE MARKETS AS INTEREST RATES AND STOCK PRICES THE BASIC TRADING INSTRUMENT ON COMMODITY EXCHANGES ARE FUTURES CONTRACTS AGREEMENTS TO BUY OR SELL A COMMODITY WHETHER A BARREL OF OIL OR A STOCKMARKET INDEX AT A FIXED PRICE AT A FUTURE DATE CONSUMERS OR INVESTORS USE FUTURES TO PROTECT THEMSELVES AGAINST SHARP SWINGS IN PRICES TRADERS ON THE EXCHANGES ATTEMPT TO MAKE MONEY BY SPECULATING ON THE DIRECTION OF PRICES THE PROPOSED ALLIANCE BETWEEN THE COMEX AND THE CBOT POSES A FORMIDABLE THREAT TO THE OTHER NEW YORK FUTURES EXCHANGES BY ALIGNING WITH THE POWERFUL CBOT COMEX CUSTOMERS WILL GET MAJOR COST SAVINGS GIVEN THE EXCHANGE'S STATED GOAL OF SLASHING COSTS BY AN ESTIMATED 8 MILLION TO 10 MILLION ANNUALLY BY MERGING CLEARING AND BACKOFFICE OPERATIONS BUT MORE IMPORTANTLY COMEX WITH THE BACKING OF THE WELLHEELED CBOT COULD GO AFTER SOME OF THE MORE LUCRATIVE NEW YORK MARKETS INCLUDING THE NEW YORK MERC'S POPULAR ENERGY CONTRACTS COMEX RECENTLY BEGAN OFFERING A CONTRACT ON PLATINUM FUTURES IN A DIRECT CHALLENGE TO THE NEW YORK MERC SO FAR HOWEVER THE CONTRACT HAS PERFORMED POORLY ALSO BY AFFILIATING WITH THE CBOT COMEX WILL BE ABLE TO OPEN ITS PRODUCTS TO A WIDER AUDIENCE BY LISTING THEM ON GLOBEX THE CHICAGO MERC AND CBOT'S AROUNDTHECLOCK ELECTRONIC TRADING SYSTEM THIS IS A WINWIN SITUATION SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH & CO IN NEW YORK IT WILL STRENGTHEN THE FINANCIAL BASIS OF BOTH EXCHANGES THIS WILL GIVE THESE TWO US EXCHANGES MORE OF AN ABILITY TO COMPETE WITH FOREIGN EXCHANGES IN EUROPE AND JAPAN SEE RELATED STORY CHICAGO'S COUP SHOWS STRENGTH OF ITS MARKETS WSJ JAN 26 1993 9301260079 930126 INTERNATIONAL PIONEER ELECTRONIC PURCHASE TOKYO PIONEER ELECTRONIC CORP OF JAPAN SAID IT BOUGHT A 66 STAKE IN MUSIQUE DIFFUSION FRANCAISE SA A DISTRIBUTOR OF PIONEER ELECTRONICS EQUIPMENT IN FRANCE TERMS OF THE TRANSACTION WEREN'T DISCLOSED THE FRENCH COMPANY'S NAME WILL BE CHANGED TO PIONEER SETTON SA AND THE REMAINING 34 STAKE WILL BE HELD BY JJ SETTON CHAIRMAN OF THE NEW COMPANY AND FORMER OWNER OF MUSIQUE DIFFUSION 9301260078 930126 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 NEAR CLOSING BID 3 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 89 DAYS 310 90 TO 119 DAYS 313 120 TO 149 DAYS 315 150 TO 179 DAYS 318 180 TO 239 DAYS 328 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 315 30 DAYS 317 60 DAYS 319 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 277 THREE MONTHS 286 SIX MONTHS 307 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 312 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 306 90 DAYS 308 120 DAYS 310 150 DAYS 315 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 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 763 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 25 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 764 60 DAYS 771 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 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 761 60 DAYS 770 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 545 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301260077 930126 POLITICS & POLICY US BUDGET DEFICIT SEEN AT 319 BILLION BY END OF FISCAL '97 BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL BUDGET DEFICIT WILL REACH 319 BILLION BY THE END OF PRESIDENT CLINTON'S TERM AND WILL DOUBLE IN 10 YEARS WITHOUT TAX INCREASES AND SPENDING CUTS ACCORDING TO NEW CONGRESSIONAL BUDGET OFFICE ESTIMATES THE DEFICIT ESTIMATE FOR THE FISCAL YEAR ENDING SEPT 30 1997 IS 29 BILLION LARGER THAN THE CBO PROJECTED SIX MONTHS AGO MOSTLY BECAUSE OF SPIRALING MEDICARE AND MEDICAID COSTS THE NEW FIGURES UNDERCUT THE CLAIM BY MR CLINTON AND HIS ADVISERS THAT THE FISCAL 1997 DEFICIT IS 50 BILLION TO 60 BILLION MORE THAN THEY ANTICIPATED DURING THE CAMPAIGN CITING THE WORSENING DEFICIT PICTURE THE NEW PRESIDENT AND HIS ECONOMIC ADVISERS HAVE SAID THAT MR CLINTON MAY NOT BE ABLE TO KEEP HIS CAMPAIGN PROMISE TO CUT THE DEFICIT IN HALF WITHOUT RAISING TAXES ON THE MIDDLE CLASS BUT SOME BUDGET ANALYSTS QUESTION WHETHER THE OUTLOOK HAS CHANGED ENOUGH TO JUSTIFY THAT ARGUMENT WHEN OUTGOING BUSH ADMINISTRATION AIDES FORECAST A 1997 DEFICIT OF 305 BILLION THE CLINTON TEAM ACCUSED THEM OF UNDERSTATING THE PROBLEM THAT'S TRUE ACCORDING TO TESTIMONY TO BE DELIVERED TO THE SENATE BUDGET COMMITTEE TODAY BY CBO DIRECTOR ROBERT REISCHAUER BUT NOT BY MUCH THE 14 BILLION INCREASE FROM THE BUSH ADMINISTRATION'S PROJECTION IS JUST NOT SIGNIFICANT AT ALL SAID STEPHEN BELL A SALOMON BROTHERS ANALYST AND FORMER REPUBLICAN STAFF DIRECTOR AT THE COMMITTEE THE NEW PRESIDENT AND HIS ADVISERS NOW SAY THEIR GOAL IS TO TRIM THE DEFICIT BY 145 BILLION IN FISCAL 1997 CUTTING IT IN HALF WOULD REQUIRE ABOUT 160 BILLION IN DEFICIT REDUCTION THE CBO PREDICTS THE 1993 DEFICIT WILL END UP AT 310 BILLION SOME 21 BILLION LESS THAN THE OFFICE FORECAST SIX MONTHS AGO AND 17 BILLION LESS THAN THE OUTGOING BUSH ADMINISTRATION PREDICTED EARLIER THIS MONTH THAT IMPROVEMENT IS LARGELY BECAUSE OF CONGRESS'S DELAY IN APPROVING ADDITIONAL MONEY FOR THE RESOLUTION TRUST CORP'S BAILOUT OF INSOLVENT SAVINGS AND LOANS AS WELL AS SLIGHTLY LOWER PROJECTED LONGRUN COSTS FOR RESOLVING TROUBLED THRIFTS AND BANKS WITHOUT POLICY CHANGES MR REISCHAUER SAYS IN HIS PREPARED TESTIMONY THE DEFICIT COULD SWELL TO 650 BILLION BY 2003 IN LARGE PART BECAUSE MEDICARE AND MEDICAID COSTS CONTINUE TO EXPLODE THOSE TWO PROGRAMS WHICH REPRESENTED 34 OF GROSS DOMESTIC PRODUCT IN 1992 ARE PROJECTED TO REACH 51 OF GDP BY 1998 THE GOOD NEWS ACCORDING TO MR REISCHAUER IS THAT AN AMBITIOUS DEFICITREDUCTION PROGRAM WOULDN'T SEVERELY DAMAGE THE ECONOMY AS SOME ECONOMISTS HAVE SAID IT WOULD IF OFFSET AT LEAST PARTLY BY AN EXPANSIONARY MONETARY POLICY A PLANNED STEADY REDUCTION IN THE DEFICIT SHOULD NOT THROW THE ECONOMY BACK INTO RECESSION MR REISCHAUER SAID POTENTIAL POLITICAL DAMAGE TO LAWMAKERS SUPPORTING TAX INCREASES AND SPENDING CUTS IS ANOTHER MATTER HOWEVER AND MR REISCHAUER THROWS COLD WATER ON MR CLINTON'S CONTENTION THAT HEALTH CARE REFORM CAN HELP TO SHRINK THE DEFICIT IN THE SHORT TERM EXTENDING HEALTH COVERAGE TO THE 37 MILLION AMERICANS WHO DON'T HAVE SUCH INSURANCE NOW WILL MAKE IT DIFFICULT TO REDUCE FEDERAL HEALTH COSTS SIGNIFICANTLY MR REISCHAUER SAYS THE DEFICIT WILL COME DOWN ONLY WHEN BOTH ELECTED OFFICIALS AND THE PUBLIC CONCLUDE THAT THE BORROWING BINGE MUST STOP THE CBO DIRECTOR SAYS THEY MUST BE WILLING TO PAY HIGHER TAXES AND RECEIVE FEWER GOVERNMENT BENEFITS IN THE 1990S FOR THE SAKE OF HIGHER LIVING STANDARDS IN THE NEXT CENTURY 9301260076 930126 REVIEW & OUTLOOK EDITORIAL SELFRELIANT IN RICE MAYBE SOMEONE SHOULD COME UP WITH AN INTERNATIONAL AWARD AMONG THE G7 NATIONS FOR THE WORLD'S ODDEST LEAST PRODUCTIVE TRADE POLICY WASHINGTON IS FULL OF PROTECTIONISTS WHO COULD COMPETE AND THE FRENCH HAVE ALWAYS BEEN GOOD AT THIS SPORT BUT DON'T RULE OUT THE JAPANESE SAY THE WORD RICE AND JAPAN'S POLICY MAKERS GET REALLY WEIRD LEAVE IT TO JAPAN'S PROTECTIONISTS TO KEEP WALLING OUT RICE WHILE IMPORTING SOMETHING NOBODY NEEDS NAMELY THE IDEAS OF ECONOMIC AUTARKY CULTIVATED BY NORTH KOREA'S KIM ILSUNG GREAT LEADER KIM IS OF COURSE THE AUTHOR AND CHIEF SPOKESMAN FOR THE JUCHE IDEA OF SELFRELIANCE IT IS MR KIM'S NOTION OF JUCHE THAT OVER THE PAST FEW DECADES HAS HELPED TURN NORTH KOREA INTO ONE OF THE MORE UNUSUAL FEATURES OF ASIA'S OTHERWISE LARGELY FERTILE ECONOMIC LANDSCAPE NONETHELESS JAPAN'S AGRICULTURE MINISTER MASAMI TANABU APPEARS TO HAVE COTTONED TO KIM ILSUNG'S WAYS EXPLAINING RECENTLY WHY JAPAN WOULD CONTINUE TO BAN RICE IMPORTS MR TANABU NOTED A COUNTRY IMPORTS SOMETHING WHICH IT IS UNABLE TO SUPPLY BY ITSELF I PREFER NOT TO TALK ABOUT IMPORTS OF SOMETHING WHICH A COUNTRY IS ABLE TO PRODUCE ENOUGH OF I THINK THAT IS WHAT TRADE SHOULD BE JAPAN'S EXPORTERS MUST BE CHOKING ON THEIR SUSHI WERE MR TANABU'S JUCHE CONCEPT OF TRADE TO INFECT OTHER SHORES JAPANESE EXPORTS OF EVERYTHING FROM CARS TO CALCULATORS COULD BE STOPPED COLD THE RESULT WOULD BE ECONOMIC DISASTER FOR JAPAN MOST OF ALL ALMOST ANY COUNTRY HAS THE ABILITY TO PRODUCE SAY ONE KIND OF CAR AND A CALCULATOR OR TWO AND IF THESE SELFPRODUCED GOODS ARE PRICED HIGH ENOUGH THE LOCAL POPULATION MAY WELL DECIDE THAT ONE KIND OF CAR IS ALL THEY REALLY NEED THUS THE NORTH KOREAN ECONOMY TODAY AND THE RUSSIAN CZECH AND EAST GERMAN ECONOMIES OF YESTERDAY THE REAL QUESTION IS WHAT GOODS CAN A GIVEN COUNTRY MOST EFFICIENTLY PRODUCE AND MOST PROFITABLY IMPORT OR EXPORT IN LANDPOOR TECHNOLOGYRICH JAPAN THE MAIN PROBLEM WITH A JUCHE POLICY IN RICE IS NOT EVEN THAT RICE COSTS MORE BUT THAT RICE FARMS TIE UP LAND THAT COULD BE USED IN FAR MORE PRODUCTIVE WAYS THE RESULT IS A DRAG ON AN ECONOMY THAT IS RIGHT NOW SHOWING THE STRAIN JAPAN'S GOVERNMENT KNOWS THIS BUT SOMEHOW HASN'T YET MANAGED TO MAKE A PUBLIC CASE FOR FREE TRADE INSTEAD INTIMIDATED BY THE SPECIAL INTERESTS OF THE COUNTRY'S DWINDLING FARMERS SOME 78 OF JAPANESE NOW LIVE IN CITIES JAPAN'S LEADERS ARE SHIRKING WHAT SHOULD BE THEIR NATURAL PROTRADE ROLE IN THE GATT TALKS FAR FROM STANDING UP FOR THE KIND OF FREE TRADE THAT COULD ULTIMATELY PROVIDE JAPAN WITH VASTLY ENLARGED MARKETS ABROAD MR TANABU OFFERS A KNOCKOFF VERSION OF THE WIT AND WISDOM OF KIM ILSUNG IF MR TANABU'S ISOLATIONISM TRULY REPRESENTS TOKYO'S VISION OF AN ECONOMIC FUTURE AND WE WOULD HOPE AND EXPECT NOT THE ONLY COMFORT IS THAT TOKYO'S GOVERNMENT TRADE EXPERTS WILL EVENTUALLY BECOME LIKE MR KIM IRRELEVANT TO WORLDCLASS ECONOMIC AFFAIRS RATHER THAN KEEPING JAPAN SELFRELIANT IN RICE IT WOULD SEEM TO US MORE SENSIBLE AND FAIRER TO JAPAN'S HARDWORKING PEOPLE FOR TOKYO TO HELP OUT GATT BY ACKNOWLEDGING THAT JUCHE RICE POLICY IS AN IDEA WHOSE TIME HAS PASSED 9301260075 930126 CLOSING THE BOOK ON AN AMERICAN TRADITION BY TIMOTHY D SCHELLHARDT STAFF REPORTER OF THE WALL STREET JOURNAL IT TOOK ARTHUR C MARTINEZ JUST FIVE MONTHS TO KILL AN AMERICAN INSTITUTION THE SEARS CATALOG SEARS ROEBUCK & CO'S NEW MERCHANDISING CHIEF YESTERDAY CALLED THE DECISION TO ELIMINATE THE 97YEAROLD GENERALMERCHANDISE CATALOG VERY DIFFICULT THIS IS OUR HERITAGE BUT THE ACTION UNDERSCORES THE RETAILING REVOLUTION THAT HAS STRUCK THE MAILS AND THE MALLS IN THE PAST DECADE SEARS'S HUGE CATALOG OPERATIONS HAVE BLED RED INK FOR NEARLY A DECADE 175 MILLION LAST YEAR ALONE AS SPECIALTY CATALOGS AND SPECIALTY STORES GRABBED MARKET SHARE FROM THE COUNTRY'S ONCESUPREME MAILORDER AND MALL MERCHANT SEARS HAD TAKEN STEPS IN RECENT YEARS TO DEAL WITH THE CATALOG'S TROUBLES INCLUDING TRIMMING ITS INVENTORY BY ONETHIRD OR MORE THAN 83000 ITEMS BUT 1556PAGE CATALOGS THE SIZE OF THE CURRENT AND LAST BIG BOOK AREN'T THE ATTENTIONGETTERS THEY ONCE WERE FINANCIAL ANALYSTS GENERALLY PRAISED THE CATALOG'S DEMISE YESTERDAY AS NECESSARY TO TURN SEARS'S MERCHANDISE OPERATIONS AROUND BUT MAXWELL SROGE A CATALOG CONSULTANT CALLED SEARS'S FAILURE TO TURN ITS CATALOG BUSINESS AROUND TRULY AN AMERICAN TRAGEDY THOUGH INDUSTRY OFFICIALS MIGHT QUARREL WITH THAT FEW WOULD QUESTION THAT NEXT TO THE BIBLE THE SEARS CATALOG WAS ONCE THE MOST POPULAR HOME LITERATURE IN AMERICA UNTIL A DECADE AGO SAID AUTHOR AND SEARS CHRONICLER DONALD KATZ MANY MANY PEOPLE IN THE SOUTH NOT NECESSARILY OLD PEOPLE WILL TELL YOU THAT THEY LEARNED TO READ FROM THE SEARS CATALOG IT WAS ALSO A READY SUBSTITUTE FOR TOILET PAPER IN OUTHOUSES ACROSS RURAL AMERICA AT ONE TIME OR ANOTHER AMERICANS COULD BUY PRACTICALLY ANYTHING FROM THE SEARS CATALOG FROM A COMPLETE LINE OF GROCERIES 1896 AND FARM IMPLEMENTS TO CARS SIX MODELS IN THE 1910 CATALOG AND EVEN HOMES A 5140 10ROOM MAILORDER SOUTHERN MANSION IN THE 1918 CATALOG DEATH WAS NO ESCAPE FROM THE CATALOG WHICH OFFERED A TOMBSTONE AND A GRAVE GUARD TO PROTECT IT AT THE TURN OF THE CENTURY THE CATALOG ALL BUT KILLED THE GENERAL STORE BY OFFERING SUCH ITEMS AS SEWING MACHINES FOR 1045 THAT RETAILERS SOLD FOR ABOUT 50 BY 1902 MR SEARS WAS SELLING ONE SEWING MACHINE A MINUTE PERUSING A SEARS CATALOG BECAME A GOOD WAY TO UNDERSTAND CHANGES IN DAILY AMERICAN LIFE OVER THE YEARS THE GROWING SELECTION OF ELECTRIC APPLIANCES OFFERED THROUGH THE CATALOG SUGGESTED THE AMERICAN HOMEMAKER'S CHANGING ROUTINE BUT THOSE SHIFTS IN DAILY LIFE EVENTUALLY HELPED LEAD TO YESTERDAY'S ANNOUNCEMENT SEARS OFTEN MOVED TOO SLOWLY TO RESPOND TO CHANGING TASTES AND SHOPPING HABITS IN APPAREL FOR INSTANCE IT STUCK TO TRADITIONAL STYLES ALL BUT IGNORING CHANGING TASTES IN YOUNG APPAREL AND UNTIL RECENTLY IT DIDN'T PERMIT CUSTOMERS TO USE CREDIT CARDS OTHER THAN ITS OWN WHEN ORDERING MERCHANDISE THROUGH THE CATALOG SEARS RESPONDED BELATEDLY TO CHANGING TIMES IT ADDED A TABLE OF CONTENTS TO ITS BIG BOOK MORE STYLISH GOODS AND A TOLLFREE ORDER NUMBER BUT THOSE CHANGES WEREN'T ENOUGH SEARS OFFICIALS SAID YESTERDAY THE ORDER LINE WOULD GO DEAD AT YEAR END 9301260074 930126 BUSINESS BRIEF GOLDEN WEST FINANCIAL CORP FOURTHQUARTER PROFIT ROSE 10 DUE TO LOAN DEMAND GOLDEN WEST FINANCIAL CORP POSTED A 10 FOURTHQUARTER PROFIT GAIN ARISING FROM STRONG LOAN DEMAND AND RELATIVELY FEW CREDIT PROBLEMS THE THRIFT OPERATOR BASED IN OAKLAND CALIF SAID NET INCOME WAS 70 MILLION OR 110 A SHARE COMPARED WITH 64 MILLION OR 1 A SHARE IN THE YEAREARLIER PERIOD FOR ALL OF 1992 EARNINGS WERE UP 19 TO 284 MILLION OR 446 A SHARE FROM 239 MILLION OR 376 A SHARE IN 1991 RIDING THE WAVE OF HOMEMORTGAGE REFINANCINGS GOLDEN WEST WROTE 18 BILLION IN NEW LOANS IN THE QUARTER UP 37 FROM A YEAR EARLIER IN 1992 LOAN VOLUME WAS 65 BILLION UP 32 FROM 49 BILLION THE PREVIOUS YEAR THE THRIFT'S PROBLEM ASSETS REMAINED LOW BY INDUSTRY STANDARDS NONPERFORMING ASSETS INCLUDING RESTRUCTURED DEBT WAS 133 OF ITS 259 BILLION IN ASSETS COMPARED WITH 124 AT THE END OF 1991 9301260073 930126 SPEAKING OF BUSINESS AFTER COMMUNISM PESSIMISM HOLDS ON BY LINDLEY H CLARK JR THE EXCOMMUNIST NATIONS OF EASTERN EUROPE ARE IN A SITUATION ENTIRELY NEW TO THEM ALMOST OVERNIGHT THEIR SYSTEM OF GOVERNMENT HAS TOTALLY CHANGED CENTRAL AUTHORITIES NO LONGER CLAIM TO HAVE THE ANSWERS TO ALL ECONOMIC PROBLEMS AND ASTONISHINGLY ENOUGH ARE ASKING AMERICANS FOR ADVICE THE AMERICANS ARE URGING THE EASTERN EUROPEANS TO FORGET ABOUT THOSE KNOWITALL GOVERNMENTS OF THE PAST MARKET ECONOMIES WILL BE INTRODUCED WHAT THE ECONOMY PRODUCES WILL BE BASED ON WHAT THE PUBLIC DEMANDS IF DEMAND EXCEEDS SUPPLY PRICES WILL RISE ENCOURAGING COMPANIES TO INCREASE PRODUCTION THE DECISION TO LIFT OUTPUT WILL BE MADE BY COMPANY MANAGERS ON THEIR OWN NOT BY A CENTRAL BUREAUCRACY CONSUMERS WILL BE FREE TO BUY WHAT THEY PLEASE AND PRICES WILL BE SET BY SUPPLY AND DEMAND NOT BY BUREAUCRATS THE CITIZENS OF THE FORMER COMMUNIST STATES HAVE BEEN LISTENING TO ALL OF THIS AND BY AND LARGE THEY LIKE WHAT THEY HEAR THEY HAVE ONLY ONE MAJOR QUESTION WILL IT WORK ROBERT SHILLER OF YALE AND TWO FORMER SOVIET SCHOLARS MAXIM BOYCKO OF THE RUSSIAN ACADEMY OF SCIENCES AND VLADIMIR KOROBOV OF THE KHERSON PEDAGOGICAL INSTITUTE IN UKRAINE HAVE BEEN STUDYING THE ATTITUDES AND EXPECTATIONS OF THE CITIZENS OF THE FORMER COMMUNIST STATES THEY'VE COMPARED THEM WITH THOSE OF PEOPLE WHO HAVE LIVED A LONG TIME IN ADVANCED CAPITALIST COUNTRIES THE MAIN QUESTION WAS WHETHER THE CITIZENS OF THE FORMER COMMUNIST STATES COULD ADJUST TO CAPITALISM AND IF SO HOW LONG IT WOULD TAKE THE RESEARCH INCLUDED CAREFUL INTERVIEWS IN RUSSIA UKRAINE EASTERN GERMANY WESTERN GERMANY JAPAN AND THE US THE RESULTS WERE REPORTED LAST YEAR IN BROOKINGS PAPERS ON ECONOMIC ACTIVITY VOL 1 A MAJOR DIFFERENCE BETWEEN THE FORMER COMMUNISTS AND THE CAPITALISTS WAS THAT A MUCH SMALLER PROPORTION OF THE EXCOMMUNISTS FELT THAT THEY HAD ANY INCENTIVE TO SUGGEST WAYS TO IMPROVE THE WORKINGS OF THEIR COMPANY OR ORGANIZATION IN RUSSIA AND UKRAINE ONLY A BIT OVER HALF OF THE WORKERS THOUGHT THEY HAD SUCH AN INCENTIVE WHILE IN THE US 90 DID ANOTHER QUESTION SUGGESTED THAT PEOPLE IN EXCOMMUNIST AND CAPITALIST CITIES WERE HAVING TROUBLE GETTING THEIR STREETS CLEANED WILL IT DO ANY GOOD TO COMPLAIN TO CITY GOVERNMENT A VAST MAJORITY OF THE CITIZENS IN FORMER COMMUNIST AREAS SAID NO WHILE A SOLID MAJORITY IN CAPITALIST CITIES THOUGHT PROTESTS WOULD HELP THE AUTHORS FEEL THAT SUCH RESPONSES FROM CITIZENS OF FORMER COMMUNIST COUNTRIES INDICATE THAT WHILE THE PEOPLE HOPE THAT THINGS HAVE CHANGED THEY'RE JUST NOT SURE SUCH DOUBT IS WIDESPREAD THE AUTHORS ASKED CITIZENS OF FORMER COMMUNIST COUNTRIES WHETHER FINE SERVICE IN A RETAIL STORE WOULD INDICATE TO THEM THAT THE PERSONNEL WERE A LITTLE STRANGE OR FOOLISH NEARLY HALF THE RESPONDENTS SAID YES CITIZENS OF EXCOMMUNIST STATES POLLED BY THE AUTHORS ARE OFTEN PESSIMISTIC THAT THE NEW MARKET FREEDOM WILL LAST CLOSE TO HALF THE RESPONDENTS THOUGHT IT WAS EITHER QUITE LIKELY OR POSSIBLE THAT THE GOVERNMENT WITHIN FIVE YEARS WOULD TAKE OVER NEW PRIVATE COMPANIES WITH LITTLE OR NO COMPENSATION TO THE OWNERS A SUBSTANTIAL MINORITY 30 TO 40 OF THE RUSSIANS AND UKRAINIANS THOUGHT IT WAS EVEN POSSIBLE THAT SOMETHING LIKE STALINISM WOULD RETURN WITHIN FIVE YEARS NEARLY HALF THE RUSSIANS AND A THIRD OF THE UKRAINIANS SAID THEY WERE PESSIMISTIC ENOUGH TO POSTPONE HAVING CHILDREN IN FACT BIRTH RATES IN RUSSIA HAVE BEEN DECLINING THE CRUDE BIRTH RATE NUMBER OF BIRTHS PER 1000 PEOPLE IN RUSSIA WAS 172 IN 1987 16 IN 1988 146 IN 1989 AND 134 IN 1990 THE AUTHORS SAY THAT THE CITIZENS OF EXCOMMUNIST STATES ARE IN A BAD EXPECTATIONS EQUILIBRIUM THEY DOUBT THAT THE NEW SYSTEM WILL WORK FOR THEM AND THEY WON'T BELIEVE THAT A CHANGE HAS REALLY COME UNTIL THE SYSTEM DOES INDEED START TO WORK FOR THEM THAT WILL TAKE TIME PERHAPS A LOT OF TIME THE RESPONSIBILITY RESTS HEAVILY ON THE GOVERNMENTS LAWS AND RESOLUTIONS THE AUTHORS SUGGEST MUST BE ALTERED TO HELP CONVINCE THE PUBLIC THAT THE SITUATION HAS INDEED CHANGED THE STUDY SUGGESTS THAT THE SITUATION IS MUCH EASIER IN THE FORMER EAST GERMANY THE EASTERN GERMANS HAVE NO PROBLEM WITH LAWS AND REGULATIONS THEY SIMPLY ACQUIRED EN BLOC THE EXISTING LAWS OF WEST GERMANY THIS IS REFLECTED IN SOME OF THE EASTERN GERMAN ANSWERS TO POLL QUESTIONS WHICH COME CLOSE TO MIRRORING THOSE FROM LONGTIME CAPITALIST COUNTRIES THE EASTERN GERMANS ARE MORE OPTIMISTIC THAN OTHER CITIZENS OF EXCOMMUNIST COUNTRIES AND MORE COMMITTED TO THE NEW SYSTEM ELSEWHERE IN EASTERN EUROPE THE AUTHORS SAY CHANGE MAY COME ONLY WITH A SORT OF SOCIAL OSMOSIS THE EXAMPLE OF PROSPERITY IN EASTERN GERMANY IF IT OCCURS WILL HELP MAYBE THOSE VISITING AMERICAN ADVISERS WILL HELP BUT IT CAN'T BE SAID OFTEN ENOUGH THAT CHANGE WILL TAKE TIME AND A LOT OF PATIENCE 9301260072 930126 CREDIT MARKETS BOND MARKET SURGES YIELDS HIT 6YEAR LOW BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET SURGED YESTERDAY WITH LONGTERM INTEREST RATES PLUNGING TO THEIR LOWEST LEVELS IN MORE THAN SIX YEARS ON SIGNS THAT THE CLINTON ADMINISTRATION IS PREPARED TO SLASH THE NATION'S BUDGET DEFICIT THE POWERFUL BOND RALLY WAS BOOSTED BY COMMENTS BY TREASURY SECRETARY LLOYD BENTSEN SUGGESTING THAT PRESIDENT CLINTON WOULD PUSH FOR AN ENERGY TAX TO HELP CUT THE HUGE FEDERAL DEFICIT MR BENTSEN'S COMMENTS POURED FUEL ON A POWERFUL BOND MARKET RALLY THAT HAS BOOSTED THE BENCHMARK 30YEAR TREASURY BOND MORE THAN 4 1/2 POINTS OR MORE THAN 45 FOR A BOND WITH 1000 FACE VALUE SINCE MIDNOVEMBER YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE 1 1/4 POINTS AND ITS YIELD TUMBLED TO 719 THE LOWEST YIELD IN OVER SIX YEARS SINCE MIDNOVEMBER THE YIELD ON THE 30YEAR BONDS HAS FALLEN FROM NEARLY 76 IT WAS THE KIND OF DAY WHERE NO MATTER HOW MANY NOTES AND BONDS YOU OWNED YOU DIDN'T OWN ENOUGH SAID JAY GOLDINGER A BOND TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF EVERYONE WANTS TO BELIEVE THAT CONGRESS IS GOING TO RAISE TAXES NOT SPEND THE MONEY AND REDUCE THE DEFICIT ALSO POWERING THE TWOMONTH BOND RALLY ARE A SERIES OF ECONOMIC AND POLITICAL DEVELOPMENTS CHEERED BY BOND INVESTORS THEY INCLUDE THE LOWEST INFLATION LEVEL IN SIX YEARS A STILLSLUGGISH ECONOMY A DROP IN COMMODITIES PRICES AND SPECULATION THAT THE TREASURY WILL REDUCE ITS SALES OF 30YEAR BONDS AND MR BENTSEN'S COMMENTS MADE DURING A SUNDAY TELEVISION INTERVIEW SHOW GAVE INVESTORS NEW HOPE THAT PRESIDENT CLINTON MIGHT BE SERIOUS ABOUT HIS PROMISE TO REDUCE THE FEDERAL DEFICIT THE COMMENTS BY MR BENTSEN WERE A DOUBLE WHAMMY FOR INVESTORS IN 30YEAR BONDS SAID JIM DONNELLY CHIEF TECHNICAL ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES THESE KINDS OF TAXES ARE NOT GOING TO HELP THE ECONOMY HE SAID BUT THEY COULD CAUSE A REDUCTION OF THE DEFICIT WE'VE HAD A PARADE OF WHAT THE BOND MARKET WOULD PERCEIVE AS RATIONAL DEFICIT REDUCTION DIALOGUE COMING OUT OF THE CLINTON ADMINISTRATION SAID THOMAS J STEFFANCI DIRECTOR OF FIXEDINCOME AT MUTUAL FUND FIRM FIDELITY INVESTMENTS THE BENTSEN STATEMENT WAS JUST ANOTHER IN A LONG LINE OF REALITY CHECKS ABOUT THE IMPORTANCE OF DEFICIT REDUCTION THE BOND MARKET'S AGGRESSIVE BULLISHNESS IS A SHARP CONTRAST WITH ITS MOOD LAST SEPTEMBER WHEN PRICES TUMBLED AND LONGTERM INTEREST RATES ROSE AS INVESTORS FRETTED THAT MR CLINTON WOULD UNLEASH A HUGE SPENDING PROGRAM TO STIMULATE THE ECONOMY BUT BY ELECTION DAY INVESTORS HAD BECOME LESS WORRIED THAT MR CLINTON WOULD WIDEN THE DEFICIT BOND MARKET INVESTORS ARE GOING TO BE ABLE TO HIT THE BALL IN THE FAT PART OF THE BAT SAID FIDELITY'S MR STEFFANCI YOU'VE GOT ECONOMIC GROWTH JUST FAST ENOUGH TO ASSUAGE INVESTOR FEARS OF A HUGE SHORTTERM SPENDING PACKAGE BUT SLOW ENOUGH TO ALLOW INVESTORS TO BREATH EASY ABOUT ANY POTENTIAL PICKUP IN INFLATION IT SEEMS THAT THE BOND MARKET IS ENJOYING THE BEST OF BOTH WORLDS AT LEAST FOR THE MOMENT WITH ALL THE POSITIVE SIGNS MONEY MANAGERS ARE RELUCTANT ABOUT PREDICTING THE END OF THE RALLY HOWEVER ACCORDING TO MR STEFFANCI THE HIGHER THE MARKET GOES THE MORE IT IS GOING TO BE PRONE TO A CORRECTION NEVERTHELESS MR STEFFANCI SAID THAT LONGTERM RATES ARE UNLIKELY TO RISE VERY SHARPLY IN THE NEXT FEW MONTHS WILLIAM SCHULTZ SENIOR ECONOMIST AND PORTFOLIO MANAGER AT WR LAZARD & CO SAID HE WAS A BIT WARY ABOUT STEPPING INTO THE MARKET AT THIS POINT I'M A LITTLE CONCERNED IT'S GETTING A LITTLE TOO FAR AHEAD OF ITSELF HE SAID I JUST CAN'T SEE LONGTERM RATES COME CRASHING THROUGH 7 SAID MR SCHULTZ ANYONE THAT HAS BOUGHT AT 725 BEFORE HAS CERTAINLY LOST HE ADDED ALSO FUELING THE RALLY HAS BEEN THE INCREASING WILLINGNESS OF INVESTORS TO INVEST IN BONDS WITH LONGER MATURITIES IN BOTH THE TREASURY AND CORPORATE BOND MARKETS LAST FALL MANY INVESTORS HAD BEEN RELUCTANT TO BUY 30YEAR BONDS BECAUSE THEY FEARED MR CLINTON'S ELECTION WOULD MEAN MORE INFLATION BUT SINCE THE BEGINNING OF THE YEAR A NUMBER OF MONEY MANAGERS AND LARGE INVESTORS WHO HAD CASH SQUIRRELED AWAY HAVE BEGUN TO BUY LONGERTERM SECURITIES ONCE AGAIN ACCORDING TO MR DONNELLY BUT THERE COULD BE SOME BUMPS IN THE ROAD AHEAD TODAY AND TOMORROW THE TREASURY IS SCHEDULED TO SELL 2675 BILLION OF TWOYEAR NOTES AND FIVEYEAR NOTES AND NEXT WEEK THE TREASURY WILL ANNOUNCE THE SIZE OF IT MASSIVE QUARTERLY AUCTION OF NEW 30YEAR BONDS 10YEAR NOTES AND THREEYEAR NOTES THE REFUNDING ANNOUNCEMENTS MAY CAUSE A CORRECTION IN BOND PRICES SAID MR STEFFANCI LATE YESTERDAY THE TWOYEAR NOTE YIELDED 425 IN WHENISSUED TRADING DOWN FROM 429 LATE FRIDAY THE FIVEYEAR NOTE YIELDED 568 IN LATE WHENISSUED TRADING DOWN FROM 575 ON FRIDAY DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC POINTS OUT THAT MR CLINTON HAS YET TO ANNOUNCE ANY SPENDING PLANS TALK ABOUT THE ENERGY TAX AND THE POSSIBILITY OF NO TAX CUTS FOR THE MIDDLE CLASS SOUND BULLISH FOR THE MARKET SAID MR FINE BUT WE HAVEN'T HEARD ABOUT THE EXPENDITURE SIDE YET LIKE HIS PLANS FOR INFRASTRUCTURE SPENDING ACCORDING TO MR FINE ALL WE'RE SEEING NOW IS TRIAL BALLOONS AND THE MARKET IS PAYING ATTENTION TO THE DEFICITREDUCTION SIDE HE SAID HE IS VERY SKEPTICAL ABOUT THEIR PLANS FOR DEFICIT REDUCTION MR FINE POINTED OUT THAT THE ECONOMY SEEMS TO BE GAINING SOME STRENGTH AND A REPORT SHOWING STRONG GROWTH IN THE GROSS DOMESTIC PRODUCT FOR THE FOURTH QUARTER OF LAST YEAR COULD KNOCK PRICES DOWN AGAIN THE GDP REPORT IS SCHEDULED TO BE RELEASED THURSDAY MEANWHILE THE TREASURY SOLD 2336 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION UP SLIGHTLY FROM LAST WEEK'S AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 298 FOR A COUPONEQUIVALENT YIELD OF 304 DOWN FROM LAST WEEK'S AUCTION WHEN THE DISCOUNT RATE WAS 303 AND THE COUPONEQUIVALENT YIELD WAS 310 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 309 FOR A COUPONEQUIVALENT YIELD OF 318 DOWN FROM 313 AND 322 RESPECTIVELY FROM LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JAN 28 THE 13WEEK BILLS MATURE APRIL 29 1993 AND THE 26WEEK BILLS MATURE JULY 29 1993 CORPORATE BOND PRICES SOARED WITH THE TREASURY MARKET YESTERDAY WHILE BANKS DOMINATED THE NEWISSUE MARKET INVESTMENTGRADE ISSUES CLIMBED 1/8 POINT TO AS MUCH AS 3/4 POINT BUOYED BY STRENGTH IN THE TREASURY MARKET TRADERS SAID THE INTEREST RATE GAPS BETWEEN CORPORATE BONDS AND COMPARABLE TREASURYS WIDENED BY 002 TO 005 PERCENTAGE POINT YESTERDAY IN THE JUNK BOND MARKET MOST HIGHYIELDS WERE UP 1/8 POINT BUT INVESTORS APPEARED TO BE DISTRACTED BY DEALS IN THE PIPELINE TRADERS SAID NEARLY 900 MILLION OF NEW CORPORATE BONDS WERE BROUGHT TO THE MARKET WITH BANKS ACCOUNTING FOR THE BULK OF ISSUANCE BORROWERS INCLUDED CONTINENTAL BANK NA A UNIT OF CONTINENTAL BANK CORP SOCIETY CORP'S SOCIETY NATIONAL BANK AND PNC FINANCIAL CORP'S PITTSBURG NATIONAL BANK CONTINENTAL BANK OFFERED 100 MILLION OF 10YEAR SUBORDINATED BANK NOTES WHICH WERE PRICED WITH 7875 COUPONS TO YIELD 7894 OR 140 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE DEAL APPEARED WELL RECEIVED DESPITE A YIELD THAT SEVERAL INVESTORS SAID WAS LOWER THAN EXPECTED FOR A SPLITRATED CREDIT OR AN ISSUE THAT STRADDLES THE LINE BETWEEN INVESTMENTGRADE AND SPECULATIVE CREDIT QUALITY IN THIS CASE THE OFFERING IS RATED A SPECULATIVE BA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS THE LOWEST INVESTMENTGRADE RATING BY STANDARD & POOR'S CORP MEANWHILE BONDS OF SEARS ROEBUCK & CO POSTED MODEST GAINS AFTER THE RETAILER UNVEILED A MAJOR RESTRUCTURING PLAN AIMED AT JETTISONING ITS UNPROFITABLE US CATALOG OPERATIONS AND FOCUSING ON ITS STRONGER RETAIL UNITS TRADERS SAID THE GAP BETWEEN YIELDS ON SEARS BONDS AND COMPARABLE TREASURYS NARROWED BY ABOUT 005 PERCENTAGE POINT YESTERDAY WHILE INTEREST RATES FELL IN THE WAKE OF YESTERDAY'S TREASURY RALLY CORPORATE ISSUANCE COULD BE MUTED THIS WEEK BECAUSE SOME CORPORATE INVESTORS WILL BE DISTRACTED BY THIS WEEK'S TREASURY ISSUANCE OF TWOYEAR AND FIVEYEAR SECURITIES FINALLY THE PROVINCE OF ONTARIO MADE REGULATORY FILINGS TO OFFER 5 BILLION OF DEBT SECURITIES AND WARRANTS TO PURCHASE DEBT SECURITIES SIGNALING THAT THE SUPPLY OF NEW CANADIAN YANKEE BONDS IS FAR FROM OVER THE FILING FOLLOWS THE PROVINCE'S 3 BILLION GLOBAL BOND OFFERING TWO WEEKS AGO YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN ENTITIES IN THE US PRICES OF MOST MUNICIPAL BONDS ENDED HIGHER GAINING AS MUCH AS 5/8 POINT THE SUDDEN STRENGTH OF THE TAXEXEMPT MARKET IS SURPRISING GIVEN THAT DEMAND HAS BEEN LACKLUSTER SINCE THE YEAR'S START DESPITE AT LEAST 9 BILLION OF BOND CALLS ON JAN 1 SOME TRADERS SAY THE CALLS WERE EXPECTED TO TRIGGER A HEARTY REINVESTMENTBASED RISE BUT MOST OF THE REINVESTMENT WAS APPARENTLY DONE LATE LAST YEAR THE DEPTH OF THE DEMAND FOR MUNIS WILL SOON BECOME CLEARER WITH YIELDS DROPPING ISSUERS TODAY ARE EXPECTED TO SELL AS MUCH AS 2 BILLION OF SECURITIES THE GRAND RIVER DAM AUTHORITY OF OKLAHOMA'S 750 MILLION ISSUE OF SERIES 1992 REVENUE REFUNDING BONDSTHE LARGEST OF THE ANTICIPATED OFFERINGSWILL BE BROUGHT TO THE MARKET BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP PRICES OF MORTGAGE SECURITIES ENDED HIGHER HOWEVER MANAGERS FROM BANKS AND INSURANCE COMPANIES WERE TRYING TO UNLOAD PORTIONS OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS TRADERS AT PRIMARY DEALERSHIPS SAID THEY SAW AS MUCH AS 750 MILLION IN REMIC CLASSES BEING OFFERED THROUGH WHAT ARE KNOWN AS BID LISTS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR FEBRUARY DELIVERY FINISHED AT 101 19/32 UP 17/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES BOTH ENDED 12/32 HIGHER AT 101 16/32 AND 101 9/32 RESPECTIVELY SOME INSTITUTIONAL INVESTORS HAVE EXPRESSED CONCERN RECENTLY OVER BEING TOO HEAVILY INVESTED IN REMIC CLASSES WITH THE DIRECTION OF LONGTERM RATES A QUESTION INVESTORS ARE UNCOMFORTABLE TRYING TO UESS WHAT HOMEOWNERS WILL DO WITH THEIR MORTGAGES GUESSING WRONG COULD MEAN INVESTING IN A SECURITY THAT IS CALLED OR EXTENDS ITS MATURITY AT UNDESIRABLE TIMES THREE NEW REMICS WERE ANNOUNCED FANNIE MAE ANNOUNCED TWO DEALS FOR A TOTAL OF 800 MILLION THE DEALS WERE BACKED BY 7 AND 8 MORTGAGE SECURITIES FREDDIE MAC ANNOUNCED A 500 MILLION REMIC THAT WAS BACKED BY 15YEAR 7 MORTGAGE SECURITIES TERENCE DONNELLY AND THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9301260071 930126 MARKETING & MEDIA ADVERTISING CALIFORNIA IS PLANNING NEW BLITZ OF SUCCESSFUL ANTISMOKING ADS BY EBEN SHAPIRO THE CALIFORNIA DEPARTMENT OF HEALTH SERVICES SEEMS LIKE AN UNLIKELY CANDIDATE TO SUCCEED IN A HEADTOHEAD ADVERTISING BATTLE WITH TOBACCO COMPANIES THE RICHEST AND MOST SOPHISTICATED MARKETERS BUT THE STATE AGENCY NONETHELESS HAS WAGED A HIGHLY EFFECTIVE 28 MILLION ANTISMOKING CAMPAIGN THAT BY ONE NEW ESTIMATE COST THE TOBACCO INDUSTRY A SURPRISING 11 BILLION IN LOST SALES NOW CALIFORNIA OFFICIALS PLAN TO INTENSIFY THEIR EFFORTS WITH A NEW 24 MILLION BLITZ THAT BEGINS NEXT MONTH THEIR SUCCESS THUS FAR HAS CONVINCED A GROWING NUMBER OF HEALTH OFFICIALS AND LAWMAKERS THAT A WELLFINANCED AD OFFENSIVE THAT PORTRAYS SMOKING IN AN UNFLATTERING LIGHT IS THE SINGLE MOST EFFECTIVE WAY TO CUT DOWN ON SMOKING THE CALIFORNIA CAMPAIGN PAID FOR BY AN INCREASE IN THE CIGARETTE TAX IS THE MOST SAVVY AND EXPENSIVE ATTEMPT YET TO BATTLE THE TOBACCO INDUSTRY'S SEDUCTIVE MESSAGES ON ITS OWN TURF USING SLICK AND HIGHPROFILE COMMERCIALS INSTEAD OF PREACHY PUBLICSERVICE SPOTS THAT AIR IN THE WEE HOURS LIVINGSTON + KEYE A LOS ANGELES AGENCY WITH 80 MILLION IN ANNUAL BILLINGS PRODUCES THE ANTISMOKING ADS THAT TARGET TEENAGERS YOUNG WOMEN AND IMMIGRANTS USING CARTOONS IN THE SPIRIT OF JOE CAMEL AND RUNNING DURING SUCH HIT SHOWS AS THE SIMPSONS AND IN LIVING COLOR IF YOU ARE GOING TO ATTACK A PACKAGEDGOODS COMPANY YOU BETTER USE PACKAGEDGOOD TECHNIQUES SAYS PAUL KEYE THE AGENCY'S CREATIVE DIRECTOR THE MOUNTING INTEREST IN PAID ADS COMES AS MANY HEALTH GROUPS HAVE ALL BUT GIVEN UP ON PUBLIC SERVICE ANNOUNCEMENTS WHICH GET POOR PLAY ON LOCAL TV STATIONS BUT ANTISMOKING ACTIVISTS ARE WORRIED THAT A NEW ROUND OF PAID ADS WON'T GET AS MUCH AIR PLAY ON TV STATIONS AND NETWORKS WHICH TURNED DOWN SOME ADS AS UNFAIR DURING THE FIRST CAMPAIGN ACTIVISTS CHARGED AT THE TIME THAT TV STATIONS WERE AFRAID OF OFFENDING THEIR MAJOR CLIENTS THE FOOD AND BEER COMPANIES THAT THE NATION'S TWO BIGGEST TOBACCO MERCHANTS OWN WHILE CIGARETTE COMPANIES ARE BANNED FROM ADVERTISING ON THE AIRWAVES PHILIP MORRIS OWNS MILLER BREWING AND KRAFT GENERAL FOODS TWO OF THE LARGEST ADVERTISERS ON TV AND RJR NABISCO HOLDINGS OWNS NABISCO ANOTHER MAJOR TV SPONSOR IN 1991 PHILIP MORRIS SPENT 11 BILLION ON ALL TYPES OF ADS AND RJR SPENT 285 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS INC MORE THAN HALF OF EACH COMPANY'S MEDIA SPENDING IS FOR TV TIME TO SELL NONTOBACCO PRODUCTS AS THE CIGARETTE COMPANIES HAVE BOUGHT FOOD COMPANIES THEY CAN EXERT BROADER PRESSURE ON THE MEDIA CONTENDS BRUCE SILVERGLADE AN EXECUTIVE WITH THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST A WASHINGTON ADVOCACY GROUP THEY HAVE ADDED CLOUT BUT SPOKESMEN FOR THE MAJOR BROADCAST NETWORKS DENY SUCH ASSERTIONS RICHARD GITTER A VICE PRESIDENT AT GENERAL ELECTRIC'S NBC UNIT CALLS THE CHARGE THAT BROADCASTERS WOULD BOW TO PRESSURE FROM BIG ADVERTISERS PREPOSTEROUS HE SAYS OUR CONCERN IS THAT CLAIMS IN THE ADVERTISING BE SUPPORTED A SPOKESWOMAN AT CAPITAL CITIES/ABC ADDS WE HAVE ACCEPTED MANY ANTISMOKING ADS AND REJECTED A FEW CBS DIDN'T RESPOND TO PHONE CALLS ALL THREE MAJOR NETWORKS HOWEVER RESERVE THE RIGHT TO REFUSE TO RUN ADS THAT THEY DEEM CONTROVERSIAL AND CALIFORNIA HEALTH OFFICIALS SAY THEIR ANTISMOKING SPOTS ARE GETTING UNDUE SCRUTINY FROM LOCAL STATIONS UNDER A SIMILAR CLAUSE THE CALIFORNIA COMMERCIALS THEMSELVES APPEAR TO BE ESPECIALLY EFFECTIVE A STUDY RELEASED LAST WEEK SHOWED A SHARP DECLINE IN SMOKING IN THE STATE DURING THE FIRST CAMPAIGN WHICH ENDED 18 MONTHS AGO CIGARETTE SALES FELL AT A RATE OF 1643 MILLION PACKS A YEAR MORE THAN TRIPLE THE ANNUAL DECLINE IN SMOKING BEFORE THE CAMPAIGN STANTON A GLANTZ A PROFESSOR OF MEDICINE AT THE UNIVERSITY OF CALIFORNIA SAN FRANCISCO CONDUCTED THE STUDY HE ESTIMATES THE ADS COST THE TOBACCO INDUSTRY 11 BILLION IN LOST SALES THE US COULD RID ITSELF OF TOBACCO IN A VERY FEW YEARS IF THE GOVERNMENT SPENT 1 BILLION A YEAR ON A NONSMOKING CAMPAIGN HE MAINTAINS IT IS LIKE WE FOUND A VACCINE FOR TOBACCO A SPOKESWOMAN FOR THE TOBACCO INSTITUTE SAYS THE DECLINE MORE LIKELY RESULTED FROM THE JUMP IN CIGARETTE PRICES IN THE STATE FOLLOWING A TAX INCREASE RATHER THAN FROM THE AD YET NEVADA IMPOSED A SIMILAR TAX INCREASE AT THE SAME TIME AND DIDN'T SEE A SIGNIFICANT ACCELERATION IN THE DECLINE OF CIGARETTE SALES DR GLANTZ COUNTERS AS CALIFORNIA OFFICIALS PREPARE TO LAUNCH THE SECOND PHASE OF THE OFFENSIVE NEXT MONTH THEY'RE MINDFUL OF SEVERAL DISPUTES IN THE EARLIER CAMPAIGN THAT ILLUSTRATE THE ADVERTISER PRESSURES THAT EXIST JACQUOLYN DUERR A CALIFORNIA HEALTH OFFICIAL SAYS THAT IN THE FIRST CAMPAIGN WHICH BEGAN IN 1990 MTV REFUSED TO RUN ONE AD THAT REFERRED TO TOBACCO AS LEGALIZED DOPE CITING CONCERNS FROM OFFICIALS AT MILLER BREWING A LARGE ADVERTISER ON MTV ALSO KABCTV A CAPITAL CITIES/ABC STATION IN LOS ANGELES REJECTED A SCRIPT FOR AN AD IT IS A PROBLEM SAYS MS DUERR THE TOBACCO COMPANIES' LEVERAGE IS ENORMOUS THAT IS WHY THE MILLER BEER RESPONSE BECAME IMPORTANT TO MTV MTV AND PHILIP MORRIS DENY HER ACCOUNT MTV POINTS OUT IT DID RUN OTHER ADS IN THE CAMPAIGN AND SAYS IT TURNED DOWN THE DOPE SPOT BECAUSE IT DIDN'T MEET THE CABLE CHANNEL'S STANDARDS AT THE ABC STATION IN LOS ANGELES A SPOKESWOMAN DENIES THERE WAS ANY PRESSURE TO AVOID CERTAIN ADS MORE SUCH BATTLES ARE LIKELY TO BE IN THE OFFING THE CALIFORNIA CAMPAIGN HAS CAUGHT THE ATTENTION OF OTHER STATES AND SEVERAL POWERFUL LAWMAKERS MICHIGAN AND MINNESOTA HAVE USED PAID ADS FOR SEVERAL YEARS AND MASSACHUSETTS IS CONSIDERING SUCH A PROGRAM SEN TOM HARKIN D IOWA PLANS TO PROPOSE LEGISLATION THIS YEAR THAT WOULD SET ASIDE 120 MILLION IN TOBACCO TAX MONEY EACH YEAR FOR PAID ADS TO COUNTER TOBACCO MARKETING NATIONWIDE HE WAS UNSUCCESSFUL IN TRYING TO INTRODUCE SUCH A MEASURE LAST YEAR A NATIONWIDE PAID AD CAMPAIGN WOULD BE AN ALARMING THREAT TO TOBACCO FORCES INDEED IT WAS THE EFFECTIVENESS OF ANTISMOKING ADS ON PRIMETIME TV MORE THAN 20 YEARS AGO THAT HELPED PROMPT TOBACCO COMPANIES TO AGREE TO A TOTAL TV BAN FROM 1967 TO 1970 THE FEDERAL GOVERNMENT HAD REQUIRED THAT BROADCASTERS PROVIDE A FREE MINUTE OF ANTISMOKING ADS FOR EVERY THREE MINUTES OF CIGARETTE COMMERCIALS IN THOSE THREE YEARS SMOKING DROPPED ALMOST 10 THAT STIFF DECLINE HASN'T BEEN MATCHED SINCE THEN SEN HARKIN SAYS WIEDEN & KENNEDY THE ADVERTISING AGENCY WHOSE CLIENTS INCLUDE NIKE AND SUBARU OF AMERICA LAID OFF 15 OF ITS 215 EMPLOYEES LAST WEEK THE REASON THAT WAS GIVEN IS CLIENT LOSSES WE HAD SOME REVERSALS OF FORTUNES SAID DAN WIEDEN PRESIDENT AND CREATIVE DIRECTOR OF THE PORTLAND ORE SHOP THE AGENCY LOST A REGIONAL BANK ACCOUNT AND THE LONDONBASED PEPE JEANS ACCOUNT MR WIEDEN SAID THE LAYOFFS WERE THE FIRST IN THE AGENCY'S 11YEAR HISTORY MOST PUBLICSERVICE ANNOUNCEMENTS SUFFER FROM LOW VISIBILITY BUT A 30SECOND MESSAGE FROM MICHAEL JACKSON'S HEAL THE WORLD FOUNDATION IS SURE TO BE AMONG THE YEAR'S MOST VISIBLE PSAS WHEN IT AIRS AT THE END OF THE SUPER BOWL HALF TIME THIS SUNDAY THE NATIONAL FOOTBALL LEAGUE IS PAYING TO AIR THE SPOT AND CONTRIBUTING 100000 TO MR JACKSON'S FOUNDATION IN LIEU OF COMPENSATION TO MR JACKSON FOR PERFORMING IN THE HALFTIME SHOW A FOUNDATION SPOKESWOMAN SAID PEPSICO'S FRITOLAY UNIT SPONSOR OF THE HALFTIME SHOW ALSO IS CONTRIBUTING 100000 TO MR JACKSON'S GROUP WHICH WORKS WITH INTERNATIONAL RELIEF AGENCIES TO HELP NEEDY CHILDREN THE CONTENTS OF THE SPOT TO BE UNVEILED TODAY COULDN'T BE LEARNED BUT 3500 CHILDREN ARE EXPECTED TO APPEAR LIVE ALONGSIDE MR JACKSON IN THE ROSE BOWL IN PASADENA CALIF THE NBC NETWORK SOLD 30SECOND UNITS OF SUPER BOWL AD TIME FOR AN ESTIMATED 850000 APIECE WE DON'T WANT THIS TO BE THE TYPE OF HALF TIME WHERE THE AUDIENCE FEELS IT CAN GO TO THE REFRIGERATOR SAID ARLEN KANTARIAN EXECUTIVE VICE PRESIDENT AT RADIO CITY MUSIC HALL PRODUCTIONS WHICH IS PRODUCING THE EXTRAVAGANZA THE MISSION HERE WAS TO UPGRADE THE ANTICIPATION LEVEL TO THE LEVEL OF THE GAME ITSELF SUPER BOWL HALF TIMES HAVE TURNED INTO LACKLUSTER AFFAIRS IN RECENT YEARS INCLUDING LAST YEAR WHEN FRITOLAY AMBUSHED THE OFFICIAL EVENT ON CBS BY SPONSORING COUNTERPROGRAMMING ON THE RIVAL FOX NETWORK FOX A UNIT OF NEWS CORP HASN'T ANNOUNCED PLANS TO COUNTER THE HALFTIME SHOW THIS YEAR 9301260070 930126 COUNTERCOUP DEFEATING BOARD FOES ROBINSON GOLUB WIN AT AMERICAN EXPRESS CHAIRMAN KEEPS JOB ADDS NEW TASKS AS UNDERSTUDY MOVES INTO THE CEO POST ADVERSARY'S SON IS DEMOTED BY WALL STREET JOURNAL STAFF REPORTERS PETER PAE STEVEN LIPIN AND JOANN S LUBLIN WHILE THE CHAIRMEN OF OTHER BIG COMPANIES HAVE LOST THEIR JOBS RECENTLY TO THE IRE OF DIRECTORS AMERICAN EXPRESS CO BOSS JAMES D ROBINSON III MANAGED TO PULL OFF A COUNTERCOUP AGAINST HIS BOARD JUST FOUR MONTHS AGO THE DIRECTORS SEEMED READY TO OUST HIM BUT YESTERDAY IN A STARTLING TURN THEY NOT ONLY RETAINED HIM AS CHAIRMAN BUT GAVE THE POST OF CHIEF EXECUTIVE TO HIS CHOSEN SUCCESSOR COMPANY PRESIDENT HARVEY GOLUB AND DEMOTED THE SON OF ONE OF THE LEADERS OF THE ABORTIVE COUP BESIDES REMAINING AS AMERICAN EXPRESS'S CHAIRMAN MR ROBINSON WAS NAMED CHAIRMAN OF ITS SHEARSON LEHMAN BROTHERS BROKERAGE UNIT TAKING THE HELM FROM HOWARD L CLARK JR MR CLARK'S FATHER FORMER AMERICAN EXPRESS CHAIRMAN HOWARD L CLARK SR AN ADVISER TO THE BOARD WAS A CHIEF CRITIC OF MR ROBINSON NO LONGER A DIRECTOR HE HAD BEEN BARRED FROM ATTENDING YESTERDAY'S MEETING THUS MR ROBINSON MANAGED TO WREST CONTROL OF THE SUCCESSION PROCESS FROM DISSIDENT DIRECTORS WHO HAD BEEN LOOKING TO NAME AN OUTSIDE CANDIDATE BY WORKING BEHIND THE SCENES IN ONETOONE MEETINGS WITH DIRECTORS AND WITH SOME HELP FROM POWERFUL FRIENDS LIKE FELIX ROHATYN OF LAZARD FRERES & CO MR ROBINSON PRESERVED A KEY ROLE IN THE COMPANY AT THE SAME TIME MR ROBINSON WAS AIDED BY FORCES OUT OF HIS CONTROL SUCH AS A DWINDLING SUPPLY OF OUTSIDE CANDIDATES SOME WERE RELUCTANT TO RELINQUISH COMFORTABLE PERCHES AT THEIR COMPANIES FOR A DICIER BERTH AT AMERICAN EXPRESS BUT WHILE THE RESULT WAS A TRIUMPH FOR MR ROBINSON THE STRUGGLE IS LIKELY TO LEAVE SCARS AT A TIME WHEN THE FINANCIAL SERVICES GIANT HARDLY NEEDS MORE STRESS DIRECTORS WHO OPPOSED MR ROBINSON'S SUCCESSION PLAN COULD PRESENT PROBLEMS FOR MR GOLUB 53 YEARS OLD WHO WILL BECOME CEO NEXT MONDAY AND REMAIN PRESIDENT STRAINS WERE CERTAINLY NOT EVIDENT HOWEVER IN A STATEMENT FROM RICHARD M FURLAUD A DIRECTOR AND CHAIRMAN OF THE SEARCH COMMITTEE HARVEY GOLUB WAS THE UNANIMOUS AND ENTHUSIASTIC CHOICE INDIVIDUALLY AND COLLECTIVELY OF OUR SEARCH COMMITTEE AND THE FULL BOARD HE SAID THE BOARD'S VOTE FOR MR ROBINSON'S APPOINTMENTS WASN'T UNANIMOUS BUT WAS AN OVERWHELMING MAJORITY ACCORDING TO A PERSON CLOSE TO THE DELIBERATIONS CRITICS OF AMERICAN EXPRESS BELIEVE THAT MR ROBINSON WILL STILL BE IN CONTROL AND THAT NOT MUCH HAS CHANGED DESPITE THE BROUHAHA OVER SUCCESSION BUT MR GOLUB IN AN INTERVIEW SAYS I'M THE CEO AND I'LL BE RUNNING THE COMPANY HE NOTES THAT MR ROBINSON'S ROLE AS CHAIRMAN WILL BE TECHNICALLY TO PRESIDE OVER BOARD MEETINGS MR GOLUB SAYS THE TWO MEN WILL CONTINUE TO WORK TOGETHER THROUGH THE OFFICE OF THE CHIEF EXECUTIVE THAT IS THE NEW NAME FOR WHAT HAD BEEN CALLED THE OFFICE OF THE CHAIRMAN ITS MEMBERS ARE MESSRS GOLUB AND ROBINSON ONE THING THAT EVIDENTLY HELPED MR GOLUB WITH THE BOARD WAS THE EFFORT HE HAS BEEN MAKING TO REVAMP THE COMPANY'S CHARGECARD BUSINESS HIS EFFORT HAS BEEN FAVORABLY RECEIVED BY THE DIRECTORS ALTHOUGH YESTERDAY AMERICAN EXPRESS REPORTED FOURTHQUARTER EARNINGS BELOW ANALYSTS' EXPECTATIONS EXTENSIVE PRESS COVERAGE OF MR ROBINSON'S THREATENED OUSTER ALSO MAY HAVE SERVED TO MAKE HIM A VICTIM THAT WAS ENOUGH TO THROW SOME AMBIVALENT BOARD MEMBERS ACROSS THE THRESHOLD OF BACKING MR GOLUB SUGGESTS JEFFREY SONNENFELD OF EMORY UNIVERSITY'S BUSINESS SCHOOL UNCERTAIN DIRECTORS DIDN'T WANT TO BE PART OF AN UNSEEMLY COUP HE SPECULATES STILL CREDIT FOR COUNTEROFFENSIVE APPEARS TO BELONG TO MR ROBINSON HE PERSONALLY PROMOTED MR GOLUB'S CANDIDACY WITH EVERY BOARD MEMBER EXCEPT FORMER MOBIL CORP CHAIRMAN RAWLEIGH WARNER SAYS A PERSON KNOWLEDGEABLE ABOUT THE SITUATION THE SELECTION OF AN OUTSIDER WOULD HAVE BEEN AN EMBARRASSING DEFEAT FOR MR ROBINSON BUT A CLEAR VICTORY FOR HIS BOARD OPPONENTS SUCH AS MR WARNER MR ROBINSON WAS AIDED BY MR ROHATYN WHO HAS BEEN ADVISING HIM FOR A NUMBER OF YEARS MR ROHATYN MET WITH THE SEARCH COMMITTEE LAST WEEK AND ADVISED IT TO MOVE QUICKLY RATHER THAN HAVE THE SUCCESSION PLAN FESTER IT WAS UNCLEAR WHETHER HE RECOMMENDED MR ROBINSON'S SUCCESSION PLAN BUT A QUICK DECISION CLEARLY BENEFITED MESSRS ROBINSON AND GOLUB I BELIEVE IT'S IMPORTANT THAT THIS SITUATION HAS BEEN RESOLVED SAID MR ROHATYN THE RESOLUTION IS VERY HEALTHY FOR AMERICAN EXPRESS AND SHEARSON THE SEEDS FOR CHANGE AT AMERICAN EXPRESS WERE PLANTED IN SEPTEMBER 1991 WHEN MR WARNER AND ANOTHER DIRECTOR INFORMALLY ASKED MR ROBINSON TO COME UP WITH A SUCCESSION PLAN THIS INITIAL MOVE WAS NEVER FOLLOWED UP ON SAYS ONE PERSON CLOSE TO THE BOARD ONE YEAR LATER AT A DINNER IN NEW YORK'S ST REGIS HOTEL A DAY BEFORE A BOARD MEETING THE 57YEAROLD MR ROBINSON MENTIONED TO SOME DIRECTORS THAT HE WOULD WANT TO RETIRE AT AGE 60 SEVERAL DIRECTORS WHO HAD BECOME DISENCHANTED WITH HIS HANDLING OF THE COMPANY SOUGHT HIS DEPARTURE IN THE NEAR FUTURE A DEMAND THAT CLEARLY CAUGHT HIM OFFGUARD IT WAS NO WONDER HE WAS SURPRISED MR ROBINSON HAD PICKED 17 OF THE 19 DIRECTORS ENJOYED CLOSE PERSONAL RELATIONSHIPS WITH MOST AND EXPECTED THEIR LOYALTY ACQUAINTANCES SAY MR ROBINSON WHO SAYS THAT HE HAD INITIATED THE SUCCESSION PROCESS IMMEDIATELY SOUGHT TO REGAIN CONTROL OF THE SUDDENLY DISORDERLY SUCCESSION BY INSISTING THAT HE ACT AS COCHAIRMAN OF THE SEARCH COMMITTEE OTHERS ON THE PANEL WERE MR FURLAUD AN OUTSIDE DIRECTOR AND FORMER PRESIDENT OF BRISTOLMYERS SQUIBB CO DAVID CULVER FORMER CHAIRMAN OF ALCAN ALUMINIUM LTD PRIVATE INVESTOR CHARLES DUNCAN AND GEORGE FISHER CHAIRMAN OF MOTOROLA INC MR ROBINSON ALSO HIRED EXECUTIVE RECRUITERS HEIDRICK & STRUGGLES INC TO ASSIST IN THE SEARCH IN THE LAST WEEK OR SO MR ROBINSON HAS BEEN TELLING BOARD MEMBERS THAT THEY COULDN'T COME UP WITH ANYBODY THE PERSON CLOSE TO THE BOARD SAID IN HUNTING FOR AN OUTSIDER AMERICAN EXPRESS DIRECTORS APPARENTLY WERE EAGER FOR A RADICAL CHANGE OF DIRECTION SO THEY CONSIDERED HIGHLY SUCCESSFUL CHIEF EXECUTIVES OF CONSUMERPRODUCTS CONCERNS RATHER THAN BANKERS BUT IT WAS TOUGH FOR THE SEARCH PANEL TO FIND TOP EXECUTIVES WILLING TO TAKE THE POST THE LEADING CANDIDATE WAS SIR COLIN MARSHALL THE CHIEF EXECUTIVE OF BRITISH AIRWAYS BUT THE CONTROVERSY SURROUNDING BA'S SMEAR CAMPAIGN AGAINST VIRGIN ATLANTIC AIRWAYS HURT HIS CHANCES BOARD MEMBERS WHO WERE SAID TO BE PUSHING FOR AN OUTSIDE CEO INCLUDED MESSRS CULVER AND WARNER JOHN BYRNE CHAIRMAN OF FUND AMERICAN COS AND WILLIAM BOWEN PRESIDENT OF ANDREW W MELLON FOUNDATION ALSO ON THEIR SIDE WAS THE ELDER MR CLARK WHO EMERGED AS ONE OF MR ROBINSON'S CHIEF CRITICS ADVISERS WHO WERE ALLOWED IN WERE FORMER PRESIDENT GERALD FORD AND ROBERT L GENILLARD CHAIRMAN OF TBG HOLDING NV WHILE MR ROBINSON'S CONTROL OF THE BOARD WAS CLEARLY TENUOUS THERE WAS NOT A STRONG OUTSIDE DIRECTOR OR ADVISER TO COUNTER HIS EFFORTS TO CHOOSE HIS SUCCESSOR AND REMAIN AS CHAIRMAN PEOPLE CLOSE TO THE SELECTION PROCESS SAY THANKS TO MR ROBINSON'S INTENSE PERSONAL LOBBYING OF DIRECTORS HE HAD LINED UP EXTENSIVE SUPPORT FOR MR GOLUB BY THE TIME THE SEARCH COMMITTEE CONVENED LAST THURSDAY THIS SORT OF INTENSE INVOLVEMENT BY A DEPARTING CEO IS BECOMING LESS COMMON AS ASSERTIVE CORPORATE BOARDS TAKE GREATER CONTROL OF MANAGEMENT SUCCESSION NOWADAYS THE NORMAL PROCEDURE IS TO HAVE A SEARCH COMMITTEE OF ONLY OUTSIDE DIRECTORS SAYS WALLACE RASMUSSEN THE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF BEATRICE FOODS COS AND A MEMBER OF SEVERAL CORPORATE BOARDS MESSRS ROBINSON AND GOLUB MAKE AN UNLIKELY PARTNERSHIP IN CONTRAST TO MR ROBINSON A DESCENDENT OF A SOUTHERN ARISTOCRACY MR GOLUB GREW UP IN BROOKLYN THE FIRST SON OF A SHOE SALESMAN AND A GRANDSON OF A RUSSIAN IMMIGRANT WHILE MR ROBINSON GRADUATED WITH HONORS FROM HARVARD BUSINESS SCHOOL MR GOLUB FLUNKED OUT OF CORNELL UNIVERSITY BEFORE RECEIVING A DEGREE FROM NEW YORK UNIVERSITY AFTER A STINT AS A SYSTEMS ENGINEER FOR IBM MR GOLUB WAS HIRED BY MCKINSEY & CO THE CONSULTING FIRM WHERE HE SPENT 14 YEARS ADVISING CLIENTS ON CORPORATE MATTERS HIS ANALYSIS OF IDS FINANCIAL SERVICES CAUGHT THE ATTENTION OF FORMER AMERICAN EXPRESS PRESIDENT SANFORD I WEILL WHO TAPPED MR GOLUB TO RUN IDS WHEN AMERICAN EXPRESS BOUGHT IT IN 1984 MR GOLUB'S STAR ROSE AS HE SWIFTLY REBUILT IDS INTO ONE OF THE COMPANY'S MORE PROFITABLE BUSINESSES BUT MR GOLUB'S TENURE AT IDS WASN'T WITHOUT ITS CONTROVERSIES HE BUILT A 15000SQUAREFOOT 69 MILLION HOUSE IN MINNESOTA THAT BECAUSE OF HIS TRANSFER TO NEW YORK MR GOLUB NEVER MOVED INTO THE COMPANY HAS BEEN CARRYING ITS COST TO THE TUNE OF 660000 A YEAR WHILE TRYING TO SELL IT IN ADDITION IDS RECENTLY FACED A CLASSACTION SUIT CHARGING AGE DISCRIMINATION THE SUIT WAS SETTLED FOR 35 MILLION BUT NOT BEFORE MR GOLUB'S NAME WAS BROUGHT INTO IT FOR MR GOLUB THE TASK AT HAND APPEARS TO BE A TALL ORDER FOR YEARS THE COMPANY HAS BEEN ABLE TO SURVIVE WHATEVER MISTAKES IT HAS MADE MOSTLY BECAUSE OF THE CHARGECARD BUSINESS WHILE THE COMPANY SPENT BILLIONS PUTTING OUT FIRES ELSEWHERE THE CORE CARD BUSINESS GENERATED HEFTY PROFITS AND CUSHIONED ANY BLOWS BUT AFTER YEARS OF DOUBLEDIGIT GROWTH THE CARD BUSINESS IS UNDER SIEGE FROM LOWERPRICED BANK CREDIT CARDS DISGRUNTLED MERCHANTS AND DEFECTING CUSTOMERS IN ADDITION TRAVEL AND CONSUMER SPENDING HAVE DECLINED DURING THE RECESSION RECENTLY THOUGH SOME ANALYSTS HAVE BEEN RECOMMENDING THAT INVESTORS BUY AMERICAN EXPRESS STOCK THE PRICE OF WHICH HAS BEEN LANGUISHING IT CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 25125 DOWN 50 CENTS TRADING WAS HEAVY MR GOLUB SEEKS TO CUT A BILLION DOLLARS IN OPERATING EXPENSES AT TRAVEL RELATED SERVICES A TASK THAT COULD BE DAUNTING THE COMPANY TOOK A 342 MILLION CHARGE AGAINST 1992 THIRDQUARTER EARNINGS TO COVER COSTS OF RESTRUCTURING THE CARD UNIT THE CHARGE INCLUDED COSTS OF SLASHING THE TRS STAFF BY 4800 CONSOLIDATING SEVERAL FACILITIES AND COMBINING ITS CONSUMER LENDING PRODUCTS WITH ITS OPTIMA CREDITCARD PORTFOLIO TO COPE WITH THESE CHALLENGES AMERICAN EXPRESS HAS BEEN SLOWLY DISMANTLING THE FINANCIALSERVICES SUPERMARKET MR ROBINSON BUILT OVER HIS 15YEAR TENURE SHEARSON'S STATEMENT YESTERDAY QUOTED MR ROBINSON AS SAYING THAT HIS OBJECTIVE WILL BE TO BUILD THE FIRM TO THE POINT WHERE AS A CONSEQUENCE OF THE QUALITY OF ITS BALANCE SHEET AND EARNINGS IT CAN SUSTAIN A SINGLEA CREDIT RATING ON A STANDALONE BASIS AT THAT POINT MR ROBINSON SAID IN THE STATEMENT WE WOULD HAVE NUMEROUS OPTIONS AVAILABLE TO US INCLUDING CREATING A PUBLIC MARKET FOR SHEARSON LEHMAN COMMON STOCK THE YOUNGER MR CLARK WILL BECOME SHEARSON'S VICE CHAIRMAN HIS RESPONSIBILITIES WILL BE TO CONCENTRATE ON DEVELOPING CLIENT RELATIONSHIPS AND ASSIST IN THE EFFORTS TO BUILD A MORE CLOSELY INTEGRATED OPERATION SHEARSON SAID SHEARSON RECENTLY SOLD ITS BOSTON CO MONEYMANAGEMENT UNIT FOR 145 BILLION TO PITTSBURGHBASED MELLON BANK CORP IT ALSO SOLD A 46 STAKE IN FIRST DATA CORP A CREDITCARD PROCESSING UNIT FOR 1 BILLION ITS REMAINING STAKE IN FIRST DATA IS VALUED AT NEARLY 2 BILLION AND THE COMPANY IS SAID TO BE LOOKING TO SHED OTHER ASSETS SUCH AS ITS AMEX LIFE ASSURANCE UNIT OTHER POSSIBLE SALES COULD INCLUDE THE PRIVATE BANKING UNIT AMERICAN EXPRESS BANK A NUMBER OF THE MOST INFLUENTIAL MEMBERS OF AMERICAN EXPRESS'S EXECUTIVE CLASS HAVE PULLED UP STAKES IN RECENT YEARS LEAVING QUESTIONS ABOUT THE EXPERIENCE LEVEL OF THOSE WHO REMAIN THERE ISN'T MUCH DEPTH ON THE BENCH SAYS JOHN KEEFE AN INDEPENDENT ANALYST IN NEW YORK THE BOARDROOM TENSIONS COULD LEAD TO FURTHER CHANGES MR SONNENFELD OF EMORY UNIVERSITY PREDICTS THAT MR ROBINSON'S BOARD OPPONENTS WILL LEAVE THE RETIREMENT OF MR WARNER 71 IS IMMINENT IN ANY CASE ONE UNANSWERED QUESTION IS HOW LONG MR ROBINSON WILL RETAIN THE CHAIRMANSHIP AND ANOTHER IS HOW MUCH OF A FREE REIN MR GOLUB WILL HAVE IN THE MEANTIME MR SONNENFELD SUGGESTS THAT MR ROBINSON PROBABLY WILL REMAIN CHAIRMAN FOR ABOUT TWO YEARS AND QUELL ANY OF THE REMAINING QUALMS ABOUT THE NEED FOR FINE TUNING OF GOLUB'S EXECUTIVE DEMEANOR MR RASMUSSEN RETIRED BEATRICE FOODS CHAIRMAN DOESN'T SEE MR ROBINSON RELINQUISHING MUCH POWER TO MR GOLUB THE BOARD'S ACTION YESTERDAY IS A FACESAVING DEAL MR RASMUSSEN SAYS IT JUST WON'T WORK UNLESS MR ROBINSON STEPS SO FAR BACK THAT THE DIRECTORS CAN'T SEE HIM THEY ARE ONLY POSTPONING MISERY MICHAEL SICONOLFI CONTRIBUTED TO THIS ARTICLE HARVEY GOLUB PRESIDENT OF AMERICAN EXPRESS BECOMES CEO FEB 1 DIRECTOR SINCE 1990 ALDO PAPONE SENIOR ADVISER FOR AMERICAN EXPRESS AND FORMER CHAIRMAN OF ITS TRAVEL RELATED SERVICES UNIT DIRECTOR SINCE 1990 ANNE L ARMSTRONG CHAIRMAN OF THE BOARD OF TRUSTEES OF THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES DIRECTOR SINCE 1983 F ROSS JOHNSON CHAIRMAN OF RJM GROUP AND FORMER PRESIDENT OF RJR NABISCO INC DIRECTOR SINCE 1986 WILLIAM G BOWEN PRESIDENT OF ANDREW W MELLON FOUNDATION AND FORMER PRESIDENT OF PRINCETON UNIVERSITY DIRECTOR SINCE 1988 DAVID M CULVER FORMER CHAIRMAN OF ALCAN ALUMINUM LTD RUNS A CANADIAN INVESTMENT FUND DIRECTOR SINCE 1980 HENRY A KISSENGER CHAIRMAN OF KISSINGER ASSOCIATES INC AND FORMER SECRETARY OF STATE DIRECTOR SINCE 1984 CHARLES W DUNCAN JR PRIVATE INVESTOR DIRECTOR SINCE 1981 DREW LEWIS CHAIRMAN OF UNION PACIFIC CORP DIRECTOR SINCE 1986 RAWLEIGH WARNER JR RETIRED CHAIRMAN OF MOBIL CORP DIRECTOR SINCE 1972 BEVERLY SILLS GREENOUGH FORMER PRESIDENT OF THE NEW YORK CITY OPERA DIRECTOR SINCE 1990 VERNON E JORDAN JR SENIOR PARTNER AKIN GUMP HAUER & FELD DIRECTOR SINCE 1977 RICHARD M FURLAUD FORMER PRESIDENT OF BRISTOLMYERS SQUIBB DIRECTOR SINCE 1972 ROGER S PENSKE PRESIDENT OF PENSKE CORP DIRECTOR SINCE 1988 9301260068 930126 BUSINESS BRIEF JP MORGAN & CO CONCERN IS MOVING 450 JOBS OUT OF NEW YORK OFFICES JP MORGAN & CO IS MOVING 450 JOBS OUT OF ITS NEW YORK CITY OFFICES WITH MOST OF THE JOBS RELOCATING TO THE BANKING COMPANY'S FACILITY IN CHRISTIANA DEL A SPOKESMAN FOR MORGAN CONFIRMED THAT EMPLOYEES AFFECTED RECEIVED NOTICE THAT THE MOVE IS PLANNED IN SIX MONTHS SOME EMPLOYEES WILL BE ASKED TO RELOCATE THE POSITIONS AFFECTED SOME OF WHICH WILL MOVE TO LONDON PRIMARILY INVOLVE OPERATIONAL JOBS IN BOTH FOREIGN AND DOMESTIC BUSINESSES DESPITE THE RELOCATION THE COMPANY SAID IT WILL HAVE A NET INCREASE IN ITS HEADCOUNT IN NEW YORK CITY BY YEAREND 1993 AT THE END OF 1992 THE TOTAL WAS 7420 CURRENTLY THE CHRISTIANA FACILITY HAS ABOUT 1100 EMPLOYEES AND THE BANKING COMPANY HAS 14368 EMPLOYEES WORLDWIDE 9301260067 930126 BUSINESS BRIEF FUQUA INDUSTRIES INC FIRM SAYS IT HAS DISCUSSED POSSIBLE SALE OF SNAPPER LINE FUQUA INDUSTRIES INC SAID IT HAS DISCUSSED THE POSSIBLE SALE OF ITS SNAPPER LAWN AND GARDEN EQUIPMENT BUSINESS BUT ADDED THAT AN AGREEMENT APPEARS REMOTE CHARLES R SCOTT FUQUA'S PRESIDENT AND CHIEF EXECUTIVE SAID A POTENTIAL BUYER FIRST INQUIRED ABOUT SNAPPER IN EARLY 1992 AND HAS CONTINUED TO MAKE OFFERS TO GET OUR ATTENTION HE SAID THE INDIVIDUAL WHO REPRESENTS A CLOSELY HELD NEW YORK COMPANY SAID 10 DAYS AGO THAT HE WOULD MAKE AN OFFER THAT FUQUA COULDN'T TURN DOWN HOWEVER MR SCOTT SAID A CONVERSATION LAST WEEK CONVINCED ME WE WEREN'T GOING TO HAVE A DEAL HE SAID THE TWO SIDES REMAINED FAR APART ON PRICE AND OTHER ISSUES FUQUA BASED IN ATLANTA SAID IT HAD DECIDED TO MAKE A STATEMENT CONCERNING SNAPPER BECAUSE OF A NEWSPAPER ARTICLE ABOUT A POSSIBLE SALE THE STORY WHICH APPEARED SUNDAY IN THE ATLANTA JOURNAL & CONSTITUTION INDICATED THAT SNAPPER MIGHT FETCH 50 MILLION TO 70 MILLION BUT FUQUA OFFICIALS SAID THOSE FIGURES WERE OFF BY AT LEAST 100 INDICATING THE TALKS WERE CLOSE TO SNAPPER'S ESTIMATED BOOK VALUE OF ABOUT 150 MILLION 9301260066 930126 BUSINESS BRIEF GRUMMAN CORP FIRM POSTS 4THQUARTER LOSS ON REINSURANCE UNIT CHARGE GRUMMAN CORP REPORTED A FOURTHQUARTER LOSS OF 29 MILLION OR NINE CENTS A SHARE COMPARED WITH NET INCOME OF 245 MILLION OR 71 CENTS A SHARE A YEAR EARLIER RESULTS IN THE RECENT QUARTER REFLECTED A 463 MILLION CHARGE FROM A REINSURANCE BUSINESS DISCONTINUED AFTER RECEIVING HEAVY CLAIMS FOR HURRICANE DAMAGE SALES IN THE QUARTER FELL 16 TO 9308 MILLION FROM 111 BILLION FOR THE YEAR THE AEROSPACE AND ELECTRONICS SYSTEMS CONCERN BASED IN BETHPAGE NY REPORTED A LOSS OF 1232 MILLION OR 373 A SHARE IN 1991 NET WAS 993 MILLION OR 288 A SHARE THE 1992 RESULTS INCLUDE A CHARGE OF 198 MILLION OR 588 A SHARE FOR ADJUSTMENT IN RETIREE HEALTH CARE ACCOUNTING THE 1991 RESULTS HAD INCLUDED A 465 MILLION CHARGE FOR THE SETTLEMENT OF CLAIMS AGAINST ITS TRACOR AVIATION INC UNIT SALES FOR THE YEAR DECLINED 12 TO 350 BILLION FROM 397 BILLION 9301260065 930126 OTC FOCUS INDEX ADVANCES 532 POINTS TO HIGH BOLSTERED BY STRENGTH IN BOND MARKET BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS SOARED PROPELLED BY A MAJOR RALLY IN THE BOND MARKET THE NASDAQ COMPOSITE INDEX CLIMBED 532 OR 076 TO A RECORD 70695 ADVANCING ISSUES OUTNUMBERED DECLINERS 1510 TO 1167 ON VOLUME OF 2646 MILLION SHARES DOWN FROM FRIDAY'S 2947 MILLION BOND INVESTORS REACTED POSITIVELY TO TREASURY SECRETARY LLOYD BENTSEN'S TALK OF POSSIBLE TAX INCREASES AND STOCKS FOLLOWED SUIT AS INVESTORS DECIDED THEY DETECTED NEW RESOLVE IN WASHINGTON TO CUT THE FEDERAL BUDGET DEFICIT THE MARKET IS STRONG ALMOST ACROSS THE BOARD SAID HEDI REYNOLDS HEAD OF NASDAQ TRADING AT MORGAN KEEGAN & CO IN MEMPHIS TENN THE BOND MARKET IS DEFINITELY HELPING THE NASDAQ MARKET WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEX BROWN & SONS SAID LOW INTEREST RATES AND GOOD EARNINGS REPORTS ARE THE TWO KEYS TO THE SMALLSTOCK RALLY THINGS SEEM STABLE ENOUGH RIGHT NOW ON THE INFLATION AND INTERESTRATE FRONT WHICH PROVIDES A DEGREE OF COMFORT FOR THE MARKET MR ROTHE SAID BUT I KEEP HEARING ABOUT JOB CREATION AND DEFICIT REDUCTION I'LL BELIEVE IT WHEN I SEE IT FOR THE MOMENT MR ROTHE SAID THERE IS STILL A LARGE AMOUNT OF CASH COMING INTO INSTITUTIONS AND MUTUAL FUNDS AND FUELING THE MARKET TECHNOLOGY MARKET LEADERS HAD MIXED PERFORMANCES INTEL JUMPED 1 1/4 TO 112 3/4 APPLE COMPUTER EDGED UP 1/2 TO 60 AND MICROSOFT SLIPPED 7/8 TO 88 1/2 DELL COMPUTER LEAPED 1 3/4 TO 48 1/2 THE PERSONALCOMPUTER COMPANY SAID IT WILL DELAY A PUBLIC OFFERING OF FOUR MILLION ADDITIONAL COMMON SHARES UNTIL AFTER IT RELEASES RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR ENDING THIS MONTH A SPOKESWOMAN SAID THE DECISION WILL PROBABLY MOVE THE OFFERING BACK TO MARCH A COUPLE OF NEW INITIAL PUBLIC OFFERINGS SURGED PHYSICIANS HEALTH SERVICES JUMPED 1 3/4 TO 19 1/2 A 30 LEAP FROM ITS INITIAL OFFERING PRICE OF 15 THE TRUMBULL CONN HEALTH MAINTENANCE ORGANIZATION MADE AN OFFERING OF CLASS A SHARES THURSDAY THROUGH LEAD UNDERWRITER DILLON READ & CO THE COMPANY OFFERED 25 MILLION OF THE 35 MILLION SHARES SOLD WHILE HOLDERS SOLD THE REST THE OFFERING PUTS ABOUT 40 OF PHYSICIANS HEALTH'S SHARES IN PUBLIC HANDS THE REST ARE CLASS B SHARES WITH GREATER VOTING POWER THOSE ARE HELD BY VARIOUS DOCTORS' GROUPS GENERAL NUTRITION EASED 1/2 TO 21 1/2 BUT WAS STILL 34 ABOVE ITS OFFERING PRICE OF 16 THE OFFERING WAS INCREASED LAST WEEK TO 44 MILLION SHARES FROM THE ORIGINAL 4150000 SHARES THAT WERE EXPECTED TO BE PRICED BETWEEN 13 1/2 AND 15 1/2 THE PITTSBURGHBASED COMPANY IS A SPECIALTY RETAILER OF VITAMIN MINERAL AND SPORTS NUTRITION SUPPLEMENTS NEW STRENGTH SPRANG FROM THE INSURANCE AREA AND FROM COMMUNICATIONSRELATED SHARES STRONGERTHANEXPECTED EARNINGS LIFTED TWO PROMINENT INSURERS SAFECO WHICH ADVANCED 1 1/8 TO 60 3/8 AND OHIO CASUALTY WHICH ROSE 1/2 TO 63 THE NASDAQ INSURANCE INDEX CLIMBED 819 OR 101 TO 82171 SHARES OF MOBILE COMMUNICATION COMPANIES SNAPPED BACK FROM SELLING ON FRIDAY THAT WAS TIED IN PART TO SPECULATION THAT CELLULAR PHONES COULD CAUSE HEALTH PROBLEMS INDUSTRY OFFICIALS DENY THERE'S ANY HAZARD MCCAW CELLULAR COMMUNICATIONS SURGED 2 1/8 TO 38 1/2 ITS 52OWNED LIN BROADCASTING UNIT ROSE 3/4 TO 86 3/8 AND FLEET CALL GAINED 1 7/8 TO 26 LEARNING CO FELL 1 3/4 TO 20 THE COMPANY WHICH DEVELOPS EDUCATIONAL SOFTWARE FOR CHILDREN SAID IT PLANS A PUBLIC OFFERING OF 13 MILLION COMMON SHARES ALL BUT 100000 OF THE SHARES WILL BE SOLD BY THE COMPANY NETWORK COMPUTING ROSE 1 1/2 TO 16 1/4 ITS FOURTHQUARTER EARNINGS DOUBLED TO 16 CENTS A SHARE IN THE FOURTH QUARTER FROM A YEAR EARLIER REVENUE AT THE MOUNTAIN VIEW CALIF COMPUTER SYSTEMS COMPANY ROSE TO 354 MILLION FROM 204 MILLION COMSHARE DROPPED 2 1/4 TO 8 3/4 EARNINGS AT THE ANN ARBOR MICH SOFTWARE COMPANY FELL TO SIX CENTS A SHARE IN THE SECOND QUARTER ENDED LAST MONTH FROM 30 CENTS A SHARE A YEAR EARLIER COMSHARE IN PART CITED AN INDUSTRYWIDE SHIFT AWAY FROM PRODUCTS IT MAKES FOR MAINFRAME COMPUTERS POLK AUDIO GAINED 1 3/8 TO 8 7/8 IT RECORDED A PROFIT OF 34 CENTS A SHARE FOR ITS THIRD QUARTER ENDED DEC 27 UP FROM 16 CENTS A SHARE A YEAR EARLIER THE BALTIMOREBASED MAKER OF LOUDSPEAKERS FOR AUDIO AND VIDEO SYSTEMS HAD SALES OF 93 MILLION UP FROM 72 MILLION KRONOS TUMBLED 3 TO 18 THE WALTHAM MASS MAKER OF DATA COLLECTION SYSTEMS REPORTED PROFIT FROM OPERATIONS OF 711000 OR 14 CENTS A SHARE FOR THE FIRST QUARTER ENDED THIS MONTH COMPARED WITH 588000 OR 14 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD MORE SHARES OUTSTANDING IN THE LATEST PERIOD MAXCO GAINED 1 5/8 TO 6 ABINGTON SAVINGS ROSE 1 1/2 TO 10 3/4 AND NORWICH FINANCIAL ADVANCED 1 1/2 TO 7 3/4 PETER LYNCH THE FORMER MANAGER OF FIDELITY INVESTMENTS' MAGELLAN FUND NAMED THE STOCKS AS AMONG HIS FAVORITES IN BARRON'S MAGAZINE INTEGRATED CIRCUIT SYSTEMS ROSE 3 TO 23 THE NORRISTOWN PA COMPANY POSTED NET INCOME OF 23 MILLION OR 25 CENTS A SHARE FOR ITS SECOND QUARTER ENDED DEC 31 UP FROM 786000 OR NINE CENTS A SHARE THE LATEST QUARTER INCLUDED A NONRECURRING CHARGE OF 12 MILLION DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9301260064 930126 A NANNIES' ADVOCATE ARGUES THEIR CASE BY NICOLA CLARK ANYONE WONDERING HOW PARENTS LIKE ZOE BAIRD GO ABOUT FINDING UNDOCUMENTED IMMIGRANTS TO WORK FOR THEM MIGHT TRY DROPPING IN ON NORA LEE FROM HER CRAMPED OFFICE OVERLOOKING MANHATTAN'S GARMENT DISTRICT MRS LEE A PARALEGAL OPERATES ALIEN'S EVALUATION SERVICES AN AGENCY THAT HELPS MATCH IMMIGRANTS WITH POTENTIAL EMPLOYERS AND THEN GUIDES THEM THROUGH THE MAZE OF GOVERNMENTAL RED TAPE AT THE LABOR DEPARTMENT ROWS OF METAL FILING CABINETS ARE FILLED WITH THE STORIES OF MORE THAN 2500 CLIENTS WHO OVER THE PAST 30 YEARS HAVE COME THROUGH MRS LEE'S DOOR AND SAT PATIENTLY ON HER SOMEWHAT WORN AND SAGGING COUCH EAGER FOR AN OPPORTUNITY TO WORK AND BEWILDERED BY INTIMIDATING RULES THEY ALWAYS WORRY THEY'RE ALWAYS AFRAID OF BEING DEPORTED SHE SAYS IT'S SUCH A SHAME BECAUSE THEY'RE GOOD WORKERS WHO HAVE PROVEN THEMSELVES LIKE MS BAIRD'S PERUVIAN BABY SITTER AND DRIVER MANY OF MRS LEE'S CLIENTS ARE DESIGNATED UNSKILLED BY THE US GOVERNMENT IN RECENT YEARS THE NANNY PROBLEM HAS GROWN ESPECIALLY ACUTE IN CITIES LIKE WASHINGTON AND NEW YORK NATIONWIDE NEARLY ONE IN FOUR HOUSEHOLDS WITH CHILDREN EMPLOYS A FULLTIME SITTER AND ODDS ARE THAT PERSON IS AN IMMIGRANT ODDS ARE THAT PERSON IS A WOMAN TOO DESPITE A SIXFOLD SURGE IN DEMAND FOR HOUSEHOLD HELP SINCE 1975 AND DOUBLEDIGIT UNEMPLOYMENT RATES IN OUR MAJOR CITIES FAMILIES HAVE ENCOUNTERED A SEVERE SHORTAGE OF AMERICANS INTERESTED IN THIS TYPE OF WORK THEY ARE TURNING INSTEAD TO IMMIGRANT WOMEN WHO ARE WILLING TO RISK DEPORTATION FOR A CHANCE AT A BETTER LIFE MOST OF MRS LEE'S CLIENTS COME TO HER THROUGH WORD OF MOUTH BUT SHE ALSO KEEPS A CLOSE EYE ON THE CLASSIFIED SECTIONS OF NEW YORK'S ETHNIC WEEKLIES THE IRISH ECHO FOR EXAMPLE DEVOTES NEARLY A THIRD OF ITS LINE AD SPACE TO HOUSEHOLD EMPLOYMENT THE PAPER REPORTS THAT OVER THE PAST YEAR THE NUMBER OF 36 ADS SOLD FOR HOME CARE SITUATIONS WANTED HAS JUMPED TO 250 OR MORE A WEEK FROM 100 MRS LEE BROWSES THROUGH THE LATEST EDITION AND GIVES A KNOWING NOD PRACTICALLY ALL OF THESE GIRLS ARE ILLEGALS SHE SAYS THE IMMIGRATION ACT OF 1990 IS LARGELY TO BLAME FOR THIS GROWTH OF WHAT MRS LEE AND OTHERS OBSERVE TO BE A BOOMING UNDERGROUND LABOR MARKET THE ACT WAS A SWEEPING REVISION DESIGNED TO FAVOR IMMIGRANTS WITH HIGHER LEVELS OF EDUCATION AND SKILLS WHILE IT DID RAISE LEGAL IMMIGRATION BY 40 OVERALL AND NEARLY TRIPLED THE NUMBER OF VISAS AVAILABLE FOR PROFESSIONAL AND SKILLED WORKERS IT ALMOST HALVED THE NUMBER OF VISAS FOR UNSKILLED IMMIGRANTS TO 10000 FROM 18000 MRS LEE'S BUSINESS HAS DEFINITELY FELT THE EFFECTS OF THE LAW I CAN NO LONGER TAKE MONEY IN GOOD FAITH FROM ANYONE WITH FEWER THAN TWO YEARS' PROFESSIONAL EXPERIENCE SHE EXPLAINS KNOWING THAT THE WAIT WILL BE NINE YEARS TO GET A LABOR CERTIFICATION THE FIRST STEP TOWARD GETTING A GREEN CARD WHILE THE LAW'S INTENT WAS INDEED TO DISCRIMINATE AGAINST FOREIGNERS BASED ON THEIR SKILLS IT MAY ALSO DISCRIMINATE AGAINST THEM BY SEX SOME 64 OF UNSKILLED VISA APPLICANTS ARE FEMALE IN A CREATIVE USE OF THE OFTENABUSED GROUP ACTION LAWSUIT MRS LEE HAS HIRED A LAWYER AND FOUNDED A GROUP ALIENS FOR BETTER IMMIGRATION LAWS ABIL TO CHALLENGE THE CONSTITUTIONALITY OF THE 1990 LAW ABIL CLAIMS THAT INSOFAR AS THE LAW HAS REDUCED THE NUMBER OF VISAS FOR UNSKILLED LABOR IT DE FACTO DISCRIMINATES AGAINST WOMEN WHO IN THEIR MAJORITY DO NOT HAVE A PROFESSIONAL DEGREE OR OTHER EXCEPTIONAL ABILITY AS THE LAW DEFINES IT ABIL'S MEMBERS ARE ALL WOMEN WITH PENDING LABOR DEPARTMENT CERTIFICATIONS THEY ALSO EXPECT THEIR APPLICATIONS TO WIN APPROVAL OTHERWISE THEY WOULDN'T HAVE DARED GO BEFORE THE PUBLIC EYE UNDER CURRENT LAW THEY WILL HAVE TO WAIT UP TO FOUR TIMES AS LONG FOR A WORK VISA THIS SUIT CHALLENGES THE LAW SOME EVIDENCE SUPPORTS MRS LEE'S CLAIM THERE IS AN INDISPUTABLE CORRELATION BETWEEN GENDER AND WORK EXPERIENCE IN MOST OF THE NONINDUSTRIAL WORLD IN LATIN AMERICA AND THE CARIBBEAN WHENCE 49 OF IMMIGRANTS TO THE US COME THE FEMALE LABOR FORCE PARTICIPATION RATE IS BELOW 19 AND ONLY HALF ARE SECONDARYSCHOOL GRADUATES ANOTHER 37 OF IMMIGRANTS COME FROM ASIA WHERE FEMALE PARTICIPATION AVERAGES ABOUT 30 AND WHERE EDUCATION LEVELS VARY CONSIDERABLY MRS LEE NOTES THAT ASIDE FROM HURTING FOREIGN WOMEN THE LAW PENALIZES PROFESSIONAL AMERICAN WOMEN WHO WANT CHILD CARE IN THE HOME CAROLYN KILLEA A WASHINGTON IMMIGRATION LAWYER AGREES ZOE BAIRD DIDN'T EARN HER 500000 A YEAR WITHOUT FIRST FINDING SOMEONE TO TAKE CARE OF THE KIDS SHE SAYS SHE ADDS THAT THE LAW NOT ONLY PROMOTES THE AGEOLD DOUBLE STANDARD FOR PROFESSIONAL WOMEN BUT IT ALSO DEMEANS HOME CARE WORK BY LABELING IT UNSKILLED' THAT'S UTTER NONSENSE ONE OF MRS LEE'S CLIENTS IS 46YEAROLD MARGUERITE G WHO WORKED AS A FULLTIME NURSE FOR EIGHT YEARS IN HER NATIVE BARBADOS BUT IS NOT CONSIDERED SKILLED BY LABOR DEPARTMENT STANDARDS AN ARTICULATE WOMAN WITH TWO YEARS OF COLLEGE EDUCATION SHE WORKS ILLEGALLY AS A LIVEIN CARETAKER FOR AN 80YEAROLD WOMAN IN SUBURBAN WHITE PLAINS NY MRS LEE HAS HELPED MARGUERITE AND HER ELDERLY EMPLOYER FILE A CERTIFICATION WITH THE LABOR DEPARTMENT BUT THE WAIT TO HAVE THAT APPLICATION PROCESSED THANKS TO THE BACKLOG CREATED BY THE 1990 LAW IS BETWEEN SEVEN AND NINE YEARS SHE MAY NOT LIVE THAT LONG SAYS MARGUERITE OF HER EMPLOYER THEN I WILL HAVE TO FIND SOMEONE ELSE AND START ALL OVER MARGUERITE'S FRUSTRATION IS CLEAR I JUST WANT TO BE ABLE TO WORK LEGALLY SO I CAN FIND A BETTER JOB SHE EXPLAINS I DON'T WANT TO HAVE TO DO SOMETHING LIKE MARRY AN AMERICAN TO DO IT I WANT TO GET A VISA AND THEN GO BACK TO SCHOOL AND BECOME A REGISTERED NURSE OR STUDY MANAGEMENT MARGUERITE OF COURSE IS NOT ALONE IN HAVING HER ASPIRATIONS QUASHED BY GOVERNMENT INTERFERENCE IMMIGRATION LAW IS NOT FAIR TO US WROTE ILLEGAL NANNY HELEN C IN A NEW YORK NEWSDAY ARTICLE LAST WEEK WHEN I WAS HIRED IN 1988 MY BOSS FILED AN APPLICATION WITH DEPARTMENT OF LABOR TO LEGALIZE MY STATUS AS A CHILDCARE WORKER IN NOVEMBER 1989 I WAS TOLD MY EMPLOYMENT VISA HAD BEEN APPROVED AND MY STATUS WOULD BE LEGALIZED BUT I'VE BEEN WAITING ALMOST FIVE YEARS TO HAVE THE FINAL INTERVIEW EMPLOYERS AND IMMIGRANT WORKERS EVERYWHERE ARE GIVING UP ON LEGITIMATE CHANNELS BUT THEY HAVE FEW LEGAL ALTERNATIVES MS KILLEA THE WASHINGTON LAWYER USED TO DO A LOT OF BUSINESS WITH PROFESSIONAL WOMEN HIRING FOREIGN BABY SITTERS BUT NOW SHE SAYS I NO LONGER HAVE A PRODUCT TO OFFER THEM AS THE WAIT TO GET A FOREIGN EMPLOYEE A GREEN CARD IN THE WASHINGTON AREA IS APPROACHING 20 YEARS THE LABOR DEPARTMENT DOESN'T WANT TO ACKNOWLEDGE THAT THERE IS A PROBLEM IN NEW YORK DELORES DEHANN DIRECTOR OF THAT CITY'S LABOR CERTIFICATION OFFICE CLAIMS THAT THE NUMBER OF FAMILIES SEEKING TO FORMALLY SPONSOR FOREIGN HOUSEHOLD HELP IS SMALL AND DECLINING WE DON'T SEE THEM VERY OFTEN ANYMORE SHE SAYS GIVEN THE LENGTH OF THE WAIT THIS IS NOT SURPRISING MRS LEE AND ABIL'S LAWYER GILBERTO GARCIA KNOW THEIRS IS A LONG AND PROBABLY LOSING BATTLE THERE IS THE QUESTION OF WHETHER THESE WOMEN AS ALIENS HAVE LEGAL STANDING TO SUE THE US GOVERNMENT OR WHETHER THEY CAN INVOKE THE FIFTH AMENDMENT'S EQUAL PROTECTION CLAUSE SAYS MR GARCIA THAT MAY BE WHERE THIS CASE FALLS APART MEANWHILE MRS LEE IS SEEKING 300 WOMEN PLAINTIFFS FOR HER SUIT THE POLICY QUESTION MRS LEE RAISES IS AN INTERESTING ONE AND ONE THAT POSTBAIRD WASHINGTON MAY BE IN THE MOOD TO EXAMINE ABIL EXPECTS ITS CASE WILL GO THROUGH A NUMBER OF APPEALS BUT WITH ANY LUCK MR GARCIA SAYS THE POLITICAL PRESSURE ON CONGRESS WILL FORCE IT TO AMEND OR MAYBE ABOLISH THE LAW MRS LEE WROTE MS BAIRD A LETTER THIS WEEK TRYING TO ENLIST HER IN THE ABIL CAUSE PERHAPS MS BAIRD NOW THAT SHE'S HAD TO ABANDON HER BID TO BECOME ATTORNEY GENERAL WILL CONSIDER THE OFFER MS CLARK WORKS ON THE JOURNAL'S EDITORIAL PAGE 9301260063 930126 FOREIGN EXCHANGE DOLLAR FALLS AGAINST THE MARK ON BELIEF GERMANY WON'T CUT INTEREST RATES SOON BY MICHAEL R SESIT AND GREGORY L WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL FOR THE SECOND STRAIGHT DAY AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES AMID GROWING PESSIMISM THAT GERMANY WON'T LOWER INTEREST RATES AS SOON AS MANY TRADERS AND INVESTORS HAD EXPECTED WE'RE JUST HAVING A LITTLE DOLLAR MELTDOWN SAID JAY TUCKER FOREIGN EXCHANGE TRADING MANAGER AT FIRST BOSTON CORP AFTER A JANUARY RALLY BASED LARGELY ON ANTICIPATIONS OF A US ECONOMIC RECOVERY AND FALLING EUROPEAN INTEREST RATES ALL WE'RE REALLY SEEING IS AN UNWINDING OF THESE EXPECTATIONS HE SAID IN LATE NEW YORK TRADING THE DOLLAR STOOD AT 15770 MARKS AND 12345 YEN DOWN FROM 15905 MARKS AND 12510 YEN LATE FRIDAY MEANWHILE THE POUND ROSE TO 15565 FROM 15305 ABOUT MIDDAY IN TOKYO THE DOLLAR WAS TRADING AT 15730 MARKS AND AT 12378 YEN DISAPPOINTED OVER LAST WEEKEND'S BREAKDOWN IN WAGE NEGOTIATIONS BETWEEN PUBLIC SECTOR UNIONS AND THE GERMAN GOVERNMENT AND SIGNS THAT GERMAN INFLATION IS STILL RUNNING HIGH INVESTORS SOLD DOLLARS AND DUMPED EUROPEAN STOCKS AMONG OTHERS FRENCH SHARES TUMBLED 22 AND THE GERMAN STOCK MARKET DECLINED 12 GERMAN AND FRENCH BONDS ALSO FELL ON PROSPECTS OF A DELAYED REDUCTION IN GERMAN INTEREST RATES NORTH RHINEWESTPHALIA GERMANY'S MOST POPULOUS STATE REPORTED THAT CONSUMERPRICE INFLATION FOR THE FIRST TWO WEEKS OF JANUARY ROSE AT AN ANNUAL RATE OF 42 UP FROM A RATE OF 37 IN THE PREVIOUS TWO MONTHS IN ADDITION GERMANY'S MONEY SUPPLY IN DECEMBER EXPANDED AT AN ANNUAL RATE OF 88 WHILE LOWER THAN NOVEMBER'S 93 GROWTH IT WAS STILL FAR ABOVE THE BUNDESBANK'S TARGET RANGE OF 35 TO 55 ANNUAL GROWTH THE PAY TALKS ARE IMPORTANT BECAUSE THEY ARE PART OF THE SOCALLED SOLIDARITY TALKS BETWEEN GOVERNMENT TRADE UNIONS AND BUSINESS ON CURBING PUBLIC SPENDING AND THE FISCAL DEFICIT SAID GEOFFREY DENNIS AN INTERNATIONAL ECONOMIST AND STRATEGIST AT JAMES CAPEL INC HE AND OTHER ANALYSTS SAID THAT THE MARKET WAS CONCERNED THAT A BREAKDOWN IN THE PAY TALKS WOULD MAKE IT MORE DIFFICULT FOR THE GERMAN CENTRAL BANK TO REDUCE INTEREST RATES SOON EVERYBODY IN ALL THE MARKETS HAD BEEN WAITING FOR GERMAN RATES TO COME DOWN SAID MR DENNIS TRADERS ALSO SAID THAT WITHOUT THE ANTICIPATED CUT IN GERMAN INTEREST RATES IT WAS BECOMING INCREASINGLY EXPENSIVE TO HOLD DOLLARS THAT'S BECAUSE AT 8375 THREEMONTH EUROMARK DEPOSITS THOSE PAID FOR MARKS HELD OUTSIDE OF GERMANY YIELD ABOUT FIVE PERCENTAGE POINTS MORE THAN THEIR US EQUIVALENT 325 ALSO UNDERMINING THE DOLLAR WAS A SENSE THAT US INTEREST RATES COULD SOFTEN FURTHER THERE IS PRESSURE DEVELOPING FROM THE CLINTON ADMINISTRATION FOR HELP FROM THE FEDERAL RESERVE TO SUPPORT THE ECONOMY SHOULD THEY PUT TOGETHER A BIG DEFICIT REDUCTION PACKAGE SAID MR DENNIS NOTING YESTERDAY'S STRONG US BOND MARKET RALLY HE SAID WE ARE TALKING ABOUT LOWER SHORTTERM RATES AND WE ARE ALREADY SEEING LOWER LONGTERM RATES STILL MR DENNIS WARNED THAT INVESTORS' WORRIES ABOUT GERMAN RATES NOT FALLING ARE OVERDONE HE NOTED THAT THE GERMAN WAGE TALKS WERE ONLY IN THEIR FIRST ROUND AND THAT THE UNIONS' DEMAND FOR A 5 WAGE INCREASE IN 1993 WASN'T THAT FAR FROM THE GOVERNMENT'S DESIRE TO HOLD INCREASES TO 25 GIVEN THE EXTREME WEAKNESS OF THE GERMAN ECONOMY WE WOULD GUESS THAT A SETTLEMENT WOULD QUICKLY BE ACHIEVED AND THIS SHOULDN'T STAND IN THE WAY OF A CUT IN GERMAN INTEREST RATES IN THE SECOND HALF OF FEBRUARY SAID MR DENNIS ASCRIBING MUCH OF THE INCREASE IN NORTH RHINEWESTPHALIA'S INFLATION RATE TO A JAN 1 INCREASE IN GERMANY'S VALUEADDED TAX HE SAID THAT CONCERN OVER RISING GERMAN INFLATION IS A SHORTTERM PROBLEM THUS MR DENNIS ADDED THIS IS A GREAT BUYING OPPORTUNITY FOR DOLLARS CURRENCY TRADERS ATTRIBUTED YESTERDAY'S 13 FALL IN THE DOLLAR AGAINST THE YEN TO RENEWED FOCUS ON JAPAN'S HUGE TRADE SURPLUS WHICH DWARFED CONCERNS ABOUT AN IMMINENT CUT IN JAPANESE INTEREST RATES JAPAN'S 1992 TRADE SURPLUS WITH ITS TRADING PARTNERS WAS A RECORD 1076 BILLION UP 38 FROM 1991 DEALERS SAID A FEW LARGE SELL ORDERS EARLY IN US TRADING PUSHED THE US CURRENCY OUT OF ITS RECENT TRADING RANGE AGAINST THE YEN THE DECLINE WAS THEN EXAGGERATED WHEN INVESTORS SCRAMBLED TO UNLOAD THEIR HOLDINGS AS THE DOLLAR FELL THROUGH SUCCESSIVE SOCALLED SUPPORT LEVELS ON CHARTS THAT MANY TRADERS USE TO PREDICT CURRENCY MOVEMENTS THE SELLING INTENSIFIED THERE JUST WASN'T A LOT OF BUYING INTEREST SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT AT FUJI BANK LTD IN NEW YORK FIRST BOSTON'S MR TUCKER NOTED THAT MANY TRADERS HAD BOUGHT DOLLARS AGAINST THE YEN WHEN THE TWO CURRENCIES WERE TRADING IN A NARROW RANGE OVER THE PAST FEW WEEKS WHEN THE YEN SURGED YESTERDAY HE SAID THESE INVESTORS RACED TO STEM THEIR LOSSES JAPAN'S HUGE TRADE SURPLUS POSED A POLITICALLY EXPLOSIVE SITUATION SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK SOME STEPS WILL HAVE TO BE TAKEN TO ADDRESS THESE MASSIVE IMBALANCES SOME TRADERS FEAR THOSE STEPS COULD INCLUDE A WEAKER DOLLAR WHICH WOULD MAKE JAPANESE IMPORTS MORE COSTLY AND US EXPORTS CHEAPER 9301260062 930126 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 CONTINENTAL BANK NA 100 MILLION OF SUBORDINATED BANK NOTES DUE FEB 1 2003 PRICED AS 7 7/8 AT 99868 TO YIELD 7894 THE NONCALLABLE BANK NOTES WERE PRICED AT A SPREAD OF 140 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS CONTINENTAL BANK NA IS A UNIT OF CONTINENTAL BANK CORP FEDERAL HOME LOAN BANKS 100 MILLION ISSUE OF NOTES DUE JAN 29 1998 PRICED TO FLOAT MONTHLY AT A SPREAD OF 20 BASIS POINTS BELOW THE 11TH DISTRICT COST OF FUNDS INDEX THE NONCALLABLE ISSUE WHICH PAYS INTEREST QUARTERLY WILL BE SOLD THROUGH LEHMAN BROTHERS HYDROQUEBEC 500 MILLION CANADIAN DOLLARS OF BONDS DUE FEB 15 2022 PRICED AS 9 5/8 AT 99375 TO YIELD 964 THE BONDS WERE PRICED AT 93 BASIS POINTS ABOVE THE GOVERNMENT OF CANADA 29YEAR BELLWETHER BOND THE ISSUE WILL BE SOLD THROUGH A GROUP OF UNDERWRITERS HEADED BY LEVESQUE BEAUBIEN GEOFFRION INC OF MONTREAL PHH CORP 100 MILLION OF NOTES DUE FEB 1 2000 PRICED AS 6 1/2 AT 99391 TO YIELD 661 THE NONCALLABLE ISSUE WAS PRICED AT 50 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH FIRST BOSTON CORP PITTSBURGH NATIONAL BANK 300 MILLION OF BANK NOTES DUE APRIL 29 1994 PRICED AT PAR TO YIELD 38 INITIALLY THE NONCALLABLE ISSUE WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE ISSUE WAS PRICED AT 10 BASIS POINTS ABOVE TREASURYS THE NOTES ARE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P PITTSBURGH NATIONAL BANK IS A UNIT OF PNC FINANCIAL CORP SOCIETY NATIONAL BANK 100 MILLION OF BANK NOTES DUE FEB 1 1994 PRICED AT PAR TO YIELD 36 INITIALLY THE NONCALLABLE ISSUE WILL BE REOFFERED AT VARIOUS PRICES THROUGH JP MORGAN SECURITIES INC THE BANK NOTES WERE PRICED AT 23 BASIS POINTS ABOVE THE TREASURY ONEYEAR BOND EQUIVALENT YIELD THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P SOCIETY NATIONAL BANK IS A UNIT OF SOCIETY CORP UNION PACIFIC CORP 150 MILLION OF DEBENTURES DUE FEB 1 2023 PRICED AS 7 7/8 AT 98866 TO YIELD 7975 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT 72 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP CELL GENESYS INC INITIAL OFFERING OF 35 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS & CO INVEMED ASSOCIATES INC AND OPPENHEIMER & CO STEEL OF WEST VIRGINIA INC FOUR MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY WHEAT FIRST BUTCHER & SINGER ANCHORAGE ALASKA 675 MILLION OF 1993 SENIORLIEN REFUNDING ELECTRICAL REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 275 IN 1993 TO 624 IN 2013 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P BENEDICTINE HEALTH SYSTEM OBLIGATED GROUP MINN 110 MILLION HEALTH CARE FACILITIES REVENUE BONDS PRICED BY A ZIEGLER SECURITIES GROUP THIS OFFERING COMPRISES SERIES 1993 AG ISSUES SOLD BY MEMBERS OF THE HEALTH SYSTEM GROUP THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY'S 84 MILLION SERIES 1993A BONDS FOR ST MARY'S MEDICAL CENTER WERE PRICED TO YIELD FROM 330 IN 1994 TO 580 IN 2006 THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY'S 146 MILLION SERIES 1993B BONDS FOR ST MARY'S MEDICAL CENTER WERE PRICED TO YIELD 620 IN 2012 AND 623 IN 2017 THE DULUTH ECONOMIC DEVELOPMENT AUTHORITY'S 468 MILLION SERIES 1993C BONDS FOR ST MARY'S MEDICAL CENTER WERE PRICED TO YIELD FROM 335 IN 1994 TO 625 IN 2020 BRAINERD MINN'S 144 MILLION SERIES 1993D BONDS FOR ST JOSEPH MEDICAL CENTER WERE PRICED TO YIELD FROM 330 IN 1994 TO 612 IN 2013 BRAINERD'S 125 MILLION SERIES 1993E BONDS FOR ST JOSEPH MEDICAL CENTER WERE PRICED TO YIELD FROM 335 IN 1994 TO 625 IN 2020 BRAINERD'S 24 MILLION SERIES 1993F BONDS FOR ST JOSEPH MEDICAL CENTER WERE PRICED TO YIELD FROM 335 IN 1994 TO 620 IN 2012 DETROIT LAKES MINN'S 11 MILLION SERIES 1993G BONDS FOR ST MARY'S REGIONAL HEALTH CENTER WERE GIVEN YIELDS THAT RANGE FROM 330 IN 1994 TO 625 IN 2019 SERIES A AND D BONDS ARE INSURED BY MBIA CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SERIES B C E F AND G BONDS ARE INSURED AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS THE OFFERING SERIES GOLD 1476 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1492 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY PRUDENTIAL SECURITIES THE OFFERING SERIES 199320 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF REMIC SECURITIES OFFERED BY KIDDER PEABODY THE OFFERING SERIES 199321 IS BACKED BY FANNIE MAE'S 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 865 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2966 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 110 MILLION FIRST CLASS TRUST 1 OFFERED BY FIRST BOSTON CORP AS LEAD UNDERWRITER AND UTENDAHL SECURITIES AS COMANAGER THE OFFERING IS BACKED BY REMIC TRUST CLASS 1993G6A THE FIRST CLASS OF REMIC 1993G6A WILL BE USED AS COLLATERAL FOR AN INTEREST RATE SWAP BETWEEN THE FIRST CLASS TRUST 1 AND CREDIT SUISSE GENERAL ELECTRIC CAPITAL CORP US PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE FEB 4 2003 VIA KIDDER PEABODY INTERNATIONAL AT ISSUE PRICE 99 3/4 NOTES PAY INTEREST AT 1/4 POINT BELOW THREEMONTH LIBOR MAXIMUM 8 1/2 MINIMUM 5 FEES 1/2 SWEDISH EXPORT CREDIT SWEDEN 150 BILLION ITALIAN LIRE OF 12 EUROBONDS DUE FEB 28 1998 AT ISSUE PRICE 10070 VIA CREDITO ITALIANO TO YIELD 1233 LESS COMMISSIONS FEES 1 7/8 9301260061 930126 BUSINESS BRIEF GERBER PRODUCTS CO FISCAL 3RDPERIOD NET ROSE 83 BUT SALES DECLINED 3 GERBER PRODUCTS CO REPORTED AN 83 INCREASE IN FISCAL THIRDQUARTER EARNINGS BUT SALES FELL 3 THE COMPANY SAID HOWEVER THAT ITS BABY FOOD BUSINESS IS RECOVERING INTENSE COMPETITIVE ACTIVITY APPEARS TO HAVE SUBSIDED AND WE ENTERED THE FOURTH QUARTER WITH AN IMPROVING ORDER RATE FOR BABY FOOD WE BELIEVE THAT OUR US BABY FOOD BUSINESS IS ON THE REBOUND THE FREMONT MICH COMPANY SAID GERBER SAID SALES FOR THE PERIOD ENDED DEC 31 FELL TO 2992 MILLION FROM 3085 MILLION A YEAR EARLIER EARNINGS TOTALED 265 MILLION OR 36 CENTS A SHARE COMPARED WITH 145 MILLION OR 19 CENTS A SHARE A YEAR EARLIER BUT THE YEAREARLIER FIGURES INCLUDED A RESTRUCTURING CHARGE FOR THE APPAREL BUSINESS OF 16 MILLION OR 21 CENTS A SHARE WITHOUT THAT CHARGE PROFIT IN THE RECENT QUARTER WOULD HAVE FALLEN 10 FOOD AND BABY CARE SALES FELL 66 TO 200 MILLION WHILE WORLDWIDE BABY FOOD VOLUME DECLINED 5 DURING THE PERIOD THE COMPANY SAID 9301260060 930126 BUSINESS BRIEF BROAD INC EARNINGS NEARLY DOUBLED IN THE FISCAL FIRST QUARTER BROAD INC LOS ANGELES SAID FISCAL FIRSTQUARTER NET INCOME NEARLY DOUBLED TO 271 MILLION OR 63 CENTS A SHARE FROM 144 MILLION OR 39 CENTS A SHARE THE PERFORMANCE FOR THE QUARTER ENDED DEC 31 REFLECTED HIGHER FEE INCOME AND NET INVESTMENT AS WELL AS A SHARP DECLINE IN REALIZED LOSSES THE FINANCIAL SERVICES CONCERN SAID GENERAL AND ADMINISTRATIVE EXPENSES WERE COMPARABLE WITH THE YEAREARLIER QUARTER INVESTORS REACTED POSITIVELY TO THE NEWS BIDDING UP THE PRICE OF THE COMPANY'S SHARES WHICH CLOSED YESTERDAY AT 3225 UP 125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING EARLIER THIS MONTH THE COMPANY SAID IT PLANS TO CHANGE ITS NAME TO SUNAMERICA INC THE NAME USED BY ITS LARGEST OPERATING UNITS SHAREHOLDERS WILL VOTE ON THE PROPOSED CHANGE AT THE ANNUAL MEETING FRIDAY 9301260059 930126 BUSINESS BRIEF CAPSTEAD MORTGAGE CORP DALLAS FIRM EXPECTS TO POST A 65 RISE IN 4THPERIOD NET CAPSTEAD MORTGAGE CORP EXPECTS TO REPORT NET INCOME ROSE 65 IN THE FOURTH QUARTER TO ABOUT 157 MILLION OR 84 CENTS A SHARE FULLY DILUTED SAID RONN K LYTLE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE PERSHARE NET IS 20 HIGHER THAN A YEAR EARLIER WHEN THE DALLAS FIRM POSTED FOURTHQUARTER NET OF 95 MILLION OR 70 CENTS A FULLY DILUTED SHARE MR LYTLE SAID FOURTHQUARTER NET INCOME ON A PRIMARY BASIS WAS 88 CENTS A SHARE IN BOTH PERIODS MR LYTLE SAID LOWER SHORTTERM INTEREST RATES IN 1992 BOOSTED CAPSTEAD'S EARNINGS FOR THE YEAR AND THE QUARTER THE MORTGAGE INVESTMENT CONCERN CAPITALIZED BY MORE THAN DOUBLING ITS LOAN PURCHASES FOR 1992 TO 55 BILLION FROM 22 BILLION IN 1991 THE VOLUME EXCEEDED A FORECAST OF 4 BILLION TO 5 BILLION THE COMPANY MADE IN EARLY 1992 ITS DIVIDEND IN 1992 ALSO ROSE TO 326 A SHARE FROM 256 A SHARE EXCEEDING THE COMPANY'S EARLY ESTIMATE OF 300 TO 310 A SHARE 9301260058 930126 BUSINESS BRIEF SHONEY'S INC JUDGE APPROVES SETTLEMENT OF RACIAL BIAS LAWSUIT A US DISTRICT COURT JUDGE IN PENSACOLA FLA APPROVED A 105 MILLION SETTLEMENT IN A RACIAL DISCRIMINATION SUIT AGAINST SHONEY'S INC THE DECISION MARKS THE END OF A LEGAL BATTLE THAT BEGAN IN 1989 WHEN 18 EMPLOYEES IN PENSACOLA SUED THE NASHVILLE TENN RESTAURANT COMPANY ALLEGING DISCRIMINATION IN PROMOTIONS AND HIRING AND SEEKING MINIMUM DAMAGES OF 530 MILLION IN NOVEMBER SHONEY'S AGREED TO MAKE 105 MILLION AVAILABLE FOR EMPLOYEES WHO ALLEGED DISCRIMINATION THE COMPANY ALSO AGREED TO INCREASE THE NUMBER OF BLACKS EMPLOYED IN MANAGEMENT POSITIONS WHERE THEY HAVE BEEN UNDERREPRESENTED THE COMPANY WHICH ACKNOWLEDGED AT THE TIME OF THE SETTLEMENT THAT CERTAIN MISTAKES WERE MADE SAID IT BOOSTED THE REPRESENTATION OF BLACKS IN MANAGEMENT POSITIONS TO 21 IN 1992 FROM 145 IN 1989 SHONEY'S HAS SAID IT CAN'T ESTIMATE THE EVENTUAL NUMBER OF CLAIMANTS IN WHAT BECAME A CLASSACTION SUIT SHONEY'S HAS 30000 EMPLOYEES 9301260057 930126 BUSINESS BRIEF PITTSTON CO STRONG SERVICE OPERATIONS HELP FIRM SWING TO A PROFIT PITTSTON CO SAID IT SWUNG TO A PROFIT FOR THE FOURTH QUARTER FROM A YEAREARLIER LOSS AS SERVICE OPERATIONS EARNINGS ROSE AND BECAUSE OF YEARAGO CHARGES THE STAMFORD CONN COMPANY HAS INTERESTS IN COAL AND ITS SERVICE OPERATIONS INCLUDE BRINK'S INC BRINK'S HOME SECURITY INC AND BURLINGTON AIR EXPRESS INC IT POSTED FOURTHQUARTER NET OF 156 MILLION OR 42 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 678 MILLION OR 182 A SHARE SALES ROSE 14 TO 5439 MILLION FROM 4772 MILLION THE YEAREARLIER QUARTER INCLUDED A CHARGE OF 76 MILLION MOSTLY FOR FUTURE COSTS ASSOCIATED WITH SOME IDLE OR CLOSED COAL FACILITIES THE COMPANY ALSO ADOPTED IN THE 1991 FOURTH QUARTER RETROACTIVE TO JAN 1 NEW ACCOUNTING STANDARDS FOR RETIREE BENEFITS AND INCOME TAXES ADJUSTED FOR THOSE CHARGES BUT BEFORE THE 76 MILLION CHARGE PITTSTON EARNED 22 CENTS A SHARE IN THE 1991 FOURTH QUARTER 9301260056 930126 BUSINESS BRIEF ALCO STANDARD CORP FIRM EXPECTS TO POST GAINS IN FISCAL FIRSTPERIOD RESULTS ALCO STANDARD CORP SAID IT EXPECTS IT MET AND POSSIBLY EXCEEDED ANALYSTS' EXPECTATIONS OF PROFIT FROM CONTINUING OPERATIONS OF 47 CENTS TO 50 CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED DEC 31 THE EXPECTED RESULTS AN IMPROVEMENT FROM THE YEAR EARLIER WERE ATTRIBUTED TO CONTINUING STRONGER PERFORMANCE IN THE COMPANY'S OFFICE PRODUCTS AND PAPERDISTRIBUTION BUSINESS AS WELL AS AN AGGRESSIVE PLAN TO REDUCE COSTS AND DUPLICATION AT VARIOUS UNITS IN AN INTERVIEW RAY B MUNDT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ALCO'S FIRSTQUARTER REVENUE MATCHED AND POSSIBLY TOPPED THE YEAREARLIER'S 12 BILLION THE VALLEY FORGE PA COMPANY EARNED 198 MILLION OR 43 CENTS A SHARE FROM CONTINUING OPERATIONS IN FISCAL 1992'S FIRST QUARTER NET INCOME IN THE PERIOD 217 MILLION OR 47 CENTS A SHARE INCLUDED RESULTS FROM ALCO DIVERSIFIED SERVICES WHICH IS BEING SOLD AND ALCO FOOD SYSTEMS SOLD EARLIER 9301260055 930126 INTERNATIONAL BRIEF SUZUKI MOTOR CORP FIRM SEES 1993 AUTO SALES RISING 14 TO 827000 UNITS SUZUKI MOTOR CORP FORECAST THAT ITS OVERALL CAR SALES WILL EDGE UP 14 TO 827000 UNITS IN CALENDAR 1993 REBOUNDING FROM A 23 SLIP IN 1992 SUZUKI SOLD 815396 UNITS IN 1992 A SPOKESMAN SAID THE COMPANY DOESN'T EXPECT THE AUTO MARKET TO IMPROVE IN 1993 BUT SUZUKI HOPES TO REACH ITS PROJECTION THROUGH ITS SALES STRATEGY SUZUKI'S DOMESTIC SALES ARE SEEN RISING 42 TO 560000 UNITS FROM 537261 DOMESTIC SALES IN 1992 WERE OFF 41 EXPORTS ARE EXPECTED TO FALL 4 TO 267000 UNITS FROM 278135 UNITS BUT THE SPOKESMAN SAID THE FALL WOULD REFLECT IN PART INCREASED ASSEMBLY ABROAD SUZUKI SEES ITS OVERSEAS PRODUCTION IN 1993 CLIMBING 20 TO 619000 UNITS FROM 517774 IN 1992 THE EXPECTATION OF THE SHARP RISE ASSUMES THAT DEMAND IN ASIA PARTICULARLY CHINA AND TAIWAN WILL BOOST LOCAL PRODUCTION IN THOSE NATIONS 9301260054 930126 BUSINESS BRIEF INTEGRATED CIRCUIT SYSTEMS INC STOCK SOARS AS CONCERN POSTS JUMP IN 2NDQUARTER PROFIT INTEGRATED CIRCUIT SYSTEMS INC SHARES ROSE 15 AS THE COMPANY POSTED A SHARP INCREASE IN EARNINGS AND ANNOUNCED PLANS TO SELL TWO MILLION COMMON SHARES THE VALLEY FORGE PA COMPANY SAID NET INCOME FOR THE SECOND QUARTER ENDED DEC 31 NEARLY TRIPLED TO 23 MILLION OR 25 CENTS A SHARE FROM 786000 OR NINE CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 192 MILLION FROM 72 MILLION THE RESULTS REFLECT THE NOVEMBER MERGER WITH AVASEM CORP SAN JOSE CALIF IN OVERTHECOUNTER TRADING YESTERDAY INTEGRATED CIRCUIT SHARES JUMPED 3 TO CLOSE AT 23 THE MAKER OF INTEGRATED CIRCUITS SAID IT PLANS TO SELL ONE MILLION SHARES WHILE THE OTHER MILLION WILL BE SOLD BY SHAREHOLDERS INCLUDING EDWARD H ARNOLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY CURRENTLY HAS NEARLY NINE MILLION SHARES OUTSTANDING WHILE THE GROUP OF SELLING SHAREHOLDERS OWN ABOUT FIVE MILLION SHARES ALEX BROWN & SONS INC IS LEAD UNDERWRITER 9301260053 930126 TECHNOLOGY BRIEF SILICON GRAPHICS INC FASTER LINE OF WORKSTATIONS IS UNVEILED BY THE COMPANY SILICON GRAPHICS INC MOUNTAIN VIEW CALIF UNVEILED A LINE OF WORKSTATION COMPUTERS THAT IT SAID ARE 10 TIMES AS POWERFUL AS ITS PREVIOUS MACHINES AND IN SOME CASES APPROACH THE POWER OF SOME SUPERCOMPUTERS THE COMPUTER MAKER SAID THE NEW MACHINES CALLED ONYX SYSTEMS WILL RUN PROGRAMS THAT HANDLE ONSCREEN GRAPHICS 10 TIMES FASTER THAN EXISTING MACHINES AND WILL USE FROM TWO TO 24 MICROPROCESSORS THE SYSTEMS WILL RANGE FROM 114900 TO 643900 SILICON GRAPHICS SAID ITS NEW WORKSTATIONS ARE AN EXTENSION OF ITS EXISTING WORKSTATION LINES WHICH ARE POPULAR AMONG SCIENTIFIC AND TECHNICAL USERS FOR THEIR FAST COLOR GRAPHICS AND THEIR SOFTWARE THAT ALLOW THEM TO HANDLE COMPLEX THREEDIMENSIONAL IMAGES THE NEW ONYX WORKSTATIONS WILL BE AIMED AT SILICON GRAPHICS' TRADITIONAL USERS IN AREAS SUCH AS AUTOMOBILE DESIGN AND MOVIE ANIMATION A SPOKESMAN SAID SEPARATELY SILICON GRAPHICS IS EXPECTED TO ANNOUNCE TOMORROW A RANGE OF POWERFUL MACHINES THAT COMPETE AGAINST TRADITIONAL SUPERCOMPUTERS 9301260052 930126 BUSINESS BRIEF BECKMAN INSTRUMENTS INC FOURTHPERIOD NET ROSE 19 AS FIRM'S PRODUCTS GAINED BECKMAN INSTRUMENTS INC'S FOURTHQUARTER NET INCOME ROSE 19 AS DIAGNOSTIC INSTRUMENTS AND TESTS SHOWED PARTICULAR STRENGTH IN THE HOSPITAL LABORATORY MARKET AND THE COMPANY'S SCIENTIFIC INSTRUMENTATION PRODUCTS INCREASED THEIR SHARE IN THE PHARMACEUTICAL AND BIOTECH MARKETS A SPOKESMAN SAID THE FULLERTON CALIF MEDICAL INSTRUMENT MAKER'S PROFIT ROSE TO 124 MILLION OR 44 CENTS A SHARE FROM 104 MILLION OR 37 CENTS A SHARE SALES INCREASED 7 TO 2502 MILLION FROM 2337 MILLION FOR THE YEAR NET INCOME ROSE 15 TO 438 MILLION OR 153 A SHARE FROM 381 MILLION OR 132 A SHARE SALES ROSE 6 TO 9088 MILLION FROM 8579 MILLION LAST MONTH A GROUP LED BY MEMBERS OF THE BASS FAMILY WHICH HOLDS 53 OF BECKMAN'S SHARES SAID IT PLANNED TO SEEK THE APPOINTMENT OF NEW DIRECTORS LAST WEEK BECKMAN SAID IT WILL ADD FOUR OUTSIDE DIRECTORS IN 1993 SIX OUTSIDERS NOW SIT ON THE COMPANY'S EIGHTMEMBER BOARD THE BASS GROUP HASN'T RESPONDED PUBLICLY TO BECKMAN'S PLAN BECKMAN DIRECTORS ARE SET TO MEET TOMORROW WITH MEMBERS OF THE BASS GROUP A BECKMAN SPOKESMAN SAID THE BASS GROUP REQUESTED THE MEETING LATE LAST MONTH 9301260051 930126 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 22 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL REDEEM ON MARCH 11 1993 ITS 64 1985 JAPANESE YEN BONDS DUE 1995 INDUSTRIAL BANK OF JAPAN IS BOND REPRESENTATIVE MOFFAT COUNTY COLO WILL REDEEM ON FEB 15 1993 725000 PRINCIPAL AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS 1980 SERIES A DUE FEB 15 1995 2001 AND 2012 CONTINENTAL BANK CHICAGO IS TRUSTEE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 26 1993 ITS 13 ECONOMIC DEVELOPMENT BONDS DUE OCT 1 2007 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE NEW YORK AND NEW JERSEY PORT AUTHORITY WILL REDEEM ON FEB 1 1993 THE FOLLOWING 10 1/2 SERIES ONE SPECIAL PROJECT BONDS 10015000 PRINCIPAL AMOUNT OF THE FIRST INSTALLMENT DUE FEB 1 2002 AND 86485000 OF THE SECOND INSTALLMENT DUE FEB 1 2008 BANK OF NEW YORK IS TRUSTEE WHEELING WVA WILL REDEEM ON MARCH 1 1993 ITS PARKING REVENUE REFUNDING BONDS SERIES 1978 DUE MARCH 1 2002 WESBANCO BANK WHEELING WHEELING WVA IS TRUSTEE PEDERNALES ELECTRIC COOPERATIVE INC WILL REDEEM ON FEB 25 1993 ITS 10 7/8 1987 ELECTRIC SYSTEM REVENUE BONDS 1987 SERIES A DUE SEPT 1 2009 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE 9301260050 930126 MARKETING BRIEF WESTWOOD ONE INC COUNTRY AND WESTERN STATION IN NEW YORK CITY IS SOLD WESTWOOD ONE INC LOS ANGELES SAID IT AGREED TO SELL NEW YORK'S ONLY COUNTRY AND WESTERN RADIO STATION WYNYFM TO NEW YORKBASED BROADCASTING PARTNERS INC FOR 50 MILLION WESTWOOD ONE SAID THE SALE REFLECTS THE COMPANY'S DESIRE TO REDUCE ITS FINANCIAL LEVERAGE WESTWOOD ONE WHICH ALSO PRODUCES AND DISTRIBUTES RADIO PROGRAMS PURCHASED WYNYFM IN SEPTEMBER 1988 FOR 39 MILLION THE ACQUISITION WILL BE THE FIFTH RADIO STATION OWNED BY BROADCASTING PARTNERS LED BY PRESIDENT BARRY MAYO WESTWOOD ONE SAID WE FULLY INTEND TO KEEP WYNY IN THE COUNTRY FORMAT AND HELP IT GROW MR MAYO SAID IN A STATEMENT BROADCASTING PARTNERS' OTHER RADIO STATIONS ARE IN CHICAGO DETROIT CHARLOTTE NC AND DALLAS IF THE SALE OF WYNY IS COMPLETED KQLZFM IN LOS ANGELES WILL BE THE ONLY RADIO STATION OWNED BY WESTWOOD ONE THE PROPOSED SALE IS SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL 9301260049 930126 BUSINESS BRIEF LA QUINTA MOTOR INNS INC RONIN PARTNERS IS CHARGING A FAILURE TO DELIVER BALLOTS IN THE CONTINUING BATTLE OVER CONTROL OF LA QUINTA MOTOR INNS LP DISSIDENT UNITHOLDER RONIN PARTNERS ACCUSED THE PARTNERSHIP'S GENERAL PARTNER OF FAILING TO DELIVER PROXY BALLOTS THAT WOULD SEAL APPROVAL OF RONIN'S PROPOSAL TO RESTRUCTURE THE PARTNERSHIP AND REMOVE THE GENERAL PARTNER RONIN WHICH RECENTLY CLAIMED IT HAD GOTTEN MORE THAN THE REQUIRED 50 OF CONSENTS NECESSARY TO FORCE THE RESTRUCTURING SAID IT LEARNED FRIDAY THAT THE GENERAL PARTNER DIDN'T DELIVER A SIGNIFICANT NUMBER OF BALLOTS TO THE COURTAPPOINTED INDEPENDENT INSPECTOR WITHOUT THE VOTES RONIN SAID IT EXPECTS TO FALL ABOUT 16000 UNITS SHORT OF THE 50 TOTAL IT NEEDS TO WIN APPROVAL OF ITS PROPOSAL TO RESTRUCTURE THE PARTNERSHIP WHICH OWNS MOTOR INNS AND RESTAURANTS THE GENERAL PARTNER LA QUINTA REALTY CORP IS A UNIT OF LA QUINTA MOTOR INNS INC THE SAN ANTONIO PUBLICLY HELD OPERATOR OF THE MOTEL CHAIN OFFICIALS OF THE PARTNERSHIP AND THE PUBLICLY HELD ENTITY DECLINED TO COMMENT ON THE CHARGES AS REPORTED THE GENERAL PARTNERS CLAIM THAT RONIN BROKE FEDERAL SECURITIES LAWS TO OBTAIN THE CONSENTS RONIN HAS DENIED THE CHARGE IN PUSHING ITS RESTRUCTURING PROPOSAL RONIN HAS ALLEGED THAT THE GENERAL PARTNER HAS BEEN CHARGING EXCESSIVE MANAGEMENT FEES AND DRAINING CASH FROM THE PARTNERSHIP AT UNITHOLDERS' EXPENSE 9301260048 930126 MARKETING & MEDIA ACTIONADVENTURE SERIES ARE MAKING A COMEBACK IN SYNDICATION ON TV BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO ACTIONADVENTURE TV SERIES LEFT IN THE DUST BY THE BROADCAST NETWORKS WHEN PRODUCTION COSTS SOARED ARE MAKING A COMEBACK IN SYNDICATION THE STRONG RATINGS DEBUT THIS MONTH OF SEVERAL PRIMETIME ONEHOUR SYNDICATED ACTION SERIES PARTICULARLY PARAMOUNT PICTURES CORP'S STAR TREK DEEP SPACE NINE HAS THE TELEVISION INDUSTRY IN A RUSH TO CAPITALIZE ON WHAT IT HOPES WILL BE A LASTING TREND THE GENRE IS AMONG THE FEW BRIGHT SPOTS IN AN OTHERWISE SUBDUED SYNDICATION MARKET FOR FALL THE INDUSTRY OPENS THE NATIONAL ASSOCIATION OF TELEVISION PROGRAM EXECUTIVES ANNUAL CONVENTION HERE TODAY BUT WHILE THE STUDIOS PRODUCING AND DISTRIBUTING THE NEW SHOWS CALL THE TREND A SEA CHANGE THE NETWORKS HAVE ANOTHER TAKE ON IT WAIT AND SEE ACTIONADVENTURE SERIES GAINED SWAY IN THE PAST COUPLE OF YEARS AS INDEPENDENT STATIONS DEMANDED ORIGINAL FARE INSTEAD OF RERUN MOVIES TO PUT UP AGAINST THE ABC CBS NBC AND FOX NETWORKS IT WAS CLASSICAL COUNTERPROGRAMMING SAYS DICK ROBERTSON PRESIDENT OF TIME WARNER INC'S WARNER BROS DOMESTIC TELEVISION DISTRIBUTION WHICH LAST WEEK BEGAN DISTRIBUTING THE SCIENCEFICTION SERIES TIME TRAX AND A KUNG FU REVIVAL SERIES THE NETWORKS QUIT DOING IT AND THE REST OF US PICKED UP THE SLACK PRODUCTION COMPANIES HARBOR EVEN BROADER AMBITIONS BEYOND THE ACTION REALM KING WORLD PRODUCTIONS INC HAS A REMAKE OF THE OLD GHOST SERIES TOPPER IN DEVELOPMENT FOR PRIMETIME SYNDICATION AND PARAMOUNT MAY TRY A HALFHOUR COMEDY THAT WOULD CHALLENGE THE NETWORKS DIRECTLY INSTEAD OF AIRING WHAT THEY WON'T SAID KERRY MCCLUGGAGE CHAIRMAN OF THE PARAMOUNT TELEVISION GROUP THE FIELD IS QUICKLY GETTING CROWDED BESIDES THE WARNER BROS ENTRIES PARAMOUNT COMMUNICATIONS INC'S STUDIO HAS DEEP SPACE NINE STAR TREK THE NEXT GENERATION AND THE UNTOUCHABLES PRODUCER STEPHEN J CANNELL IS PUTTING OUT A ONEHOUR MARTIAL ARTS SHOW FOR FALL DUBBED VIPER AND HAS TWO OTHERS MEANWHILE HIGHLANDER IS A FANTASY SERIES FINANCED 75 BY A FRENCHLED EUROPEAN CONSORTIUM AND 25 BY AMERICANS FOREIGN MONEY IS KEY TO ALL OF THE SHOWS' SUCCESS WITH SALES TO FOREIGN BROADCASTERS COVERING A SIZABLE CHUNK OF PRODUCTION BUDGETS THAT RANGE FROM AN ESTIMATED 750000 AN EPISODE FOR MR CANNELL'S SHOWS TO MORE THAN TWO TIMES THAT FOR THE PARAMOUNT SERIES ACTIONADVENTURE IS ONE OF THE MOST PORTABLE PIECES OF MATERIAL AROUND SAID STEVEN MAIER WHOSE COMPANY PUT TOGETHER THE INTERNATIONAL COFINANCING PACKAGE FOR HIGHLANDER THE ACTIONERS HOWEVER REQUIRE THE STUDIOS TO BEAR FAR MORE OF THE RISK THAN WHEN THEY SOLD DIRECTLY TO A NETWORK IN THE FIRST YEAR WARNER BET NORTH OF 40 MILLION SAID MR ROBERTSON FOR PRODUCING 22 EPISODES FOR EACH OF THE TWO SERIES AT ABOUT 750000 AN HOUR AND FOR MARKETING COSTS A NETWORK DEAL WOULD HAVE COVERED PERHAPS 1 MILLION OF EACH 13 MILLION EPISODE WARNER CUTS COSTS BY COMMITTING TO 22 EPISODES UP FRONT INSTEAD OF WAITING FOR A NETWORK ORDER TO TRICKLE IN AT A FEW EPISODES AT A TIME THEREBY ENJOYING ECONOMIES OF SCALE TIMESAVING SHOOTING SCHEDULES AND OTHER BENEFITS BUT NETWORK EXECUTIVES ARE SKEPTICAL IT'S EARLY SAID ONE THEY PROBABLY HAVE A GOOD OPPORTUNITY OF WORKING BUT I'D LIKE TO TAKE ANOTHER LOOK IN MAY AND IF THE SYNDICATED SHOWS BEGIN WORKING TOO WELL THE NETWORKS WILL FIND A WAY BACK INTO THE ACTION BUSINESS NBC FOR EXAMPLE ALREADY HAS ONE ACTION SHOW ON TAP FOR FALL AND A SECOND IS IN DEVELOPMENT 9301260047 930126 AGRICULTURE SECRETARY DEFENDS DISCUSSION HE HAD WITH LOBBYIST WASHINGTON AGRICULTURE SECRETARY MIKE ESPY DEFENDED HIS DISCUSSION OF POTENTIAL APPOINTMENTS WITH AN AGRIBUSINESS LOBBYIST SAYING THEY TALKED ABOUT A WIDE RANGE OF ISSUES AS HE DOES WITH MANY PEOPLE MR ESPY MET WITH MARSHALL MATZ THE LOBBYIST AND FORMER DEMOCRATIC REP TONY COELHO WHO WORKS AT WERTHEIM SCHRODER INVESTMENT SERVICES AN ASSETS MANAGEMENT FIRM MR COELHO SERVED ON THE HOUSE AGRICULTURE COMMITTEE AND HAD POLITICAL TIES TO THE AGRIBUSINESS COMMUNITY JOEL BERG A SPOKESMAN FOR MR ESPY SAID THAT THE SECRETARY DID SOLICIT THE TWO MEN'S VIEWS ON POTENTIAL CANDIDATES FOR POSTS AT THE AGRICULTURE DEPARTMENT AND THAT HE MAY HAVE SHARED CONFIDENTIAL EVALUATIONS OF VARIOUS CANDIDATES THAT HAD BEEN PREPARED BY TRANSITION OFFICIALS BUT HE PLAYED DOWN THE SESSION AS NOTHING UNUSUAL SAYING THEY WENT OVER A WIDE VARIETY OF REPORTS AS HE DOES WITH MANY PEOPLE WHO AREN'T LOBBYISTS MR BERG SAID THE SECRETARY PLANS TO MEET WITH A WIDE VARIETY OF PEOPLE SOME OF WHOM WILL BE LOBBYISTS HE DEALT WITH THEM IN THE WAY HE DEALS WITH EVERYONE ELSE A LOT OF LOBBYISTS HAVE A LOT OF EXPERTISE AND WE ARE OPEN TO MEETING WITH THEM THE MEETING WAS FIRST REPORTED IN THE LOS ANGELES TIMES 9301260046 930126 BUSINESS BRIEF PACIFICORP PACIFIC TELECOM PLANS TO POST A CHARGE FOR FOURTH QUARTER PACIFICORP'S 87OWNED PACIFIC TELECOM INC SAID IT EXPECTS TO POST A CHARGE FOR THE FOURTH QUARTER OF BETWEEN 38 MILLION AND 43 MILLION RELATED TO ITS PROPOSED ACQUISITION OF 45 MILLION SHARES OF IDB COMMUNICATIONS GROUP INC THE UTILITY BASED IN VANCOUVER WASH DIDN'T SAY WHAT IMPACT THE CHARGE WOULD HAVE ON NET INCOME FOR THE QUARTER IN 1991 PACIFIC TELECOM HAD NET OF 81 MILLION OR 205 A SHARE ON REVENUE OF 7244 MILLION THE CHARGE RELATES TO AN ADJUSTMENT IN THE CARRYING VALUE OF PACIFIC TELECOM'S 851 STAKE IN INTERNATIONAL COMMUNICATIONS HOLDINGS INC AS PART OF THE ACQUISITION OF IDB STOCK PACIFIC TELECOM WILL EXCHANGE STOCK OF TRT COMMUNICATIONS INC A UNIT OF INTERNATIONAL COMMUNICATIONS FOR THE IDB SHARES THE ACTUAL CHARGE TO BE RECORDED IS DEPENDENT UPON THE MARKET VALUE OF IDB COMMON STOCK AT CLOSING PACIFIC TELECOM SAID 9301260045 930126 O&Y UNSECURED CREDITORS CLEAR RESTRUCTURING PLAN TORONTO OLYMPIA & YORK DEVELOPMENTS LTD'S UNSECURED CREDITORS APPROVED THE INSOLVENT REAL ESTATE COMPANY'S PLAN TO RESTRUCTURE ITS CANADIAN OPERATIONS PAVING THE WAY FOR O&Y TO EMERGE FROM BANKRUPTCY COURT PROTECTION ON FEB 1 THE VOTE CULMINATING EIGHT MONTHS OF NEGOTIATIONS WITH MORE THAN 100 LENDERS VIRTUALLY ENSURES THE TORONTO COMPANY'S SURVIVAL ALBEIT IN A MUCH TRIMMED DOWN FORM O&Y WHICH HAS BEEN OPERATING UNDER CANADIAN BANKRUPTCY COURT PROTECTION SINCE MAY STILL MUST SUBMIT THE PLAN FOR COURT APPROVAL CREDITORS WHO SUPPORT THE PLAN HAVE OPTED FOR THE BENEFIT OF CONTINUED OPERATION OF OLYMPIA & YORK AS OPPOSED TO IMMEDIATE FORCED LIQUIDATION THE PLAN ESTABLISHES A FRAMEWORK THAT PROVIDES DIRECTION AND STABILITY TO O&Y'S CANADIAN OPERATIONS FOR A FIVEYEAR PERIOD AND PERMITS TIME TO COMPLETE THE REORGANIZATION OF ASSETS IN THE UNITED STATES SAID GERALD GREENWALD O&Y'S PRESIDENT O&Y'S CANADIAN RESTRUCTURING PLAN HAS BEEN VOTED ON OVER THE PAST TWO WEEKS BY NEARLY THREE DOZEN CREDITOR GROUPS BUT APPROVAL BY THE COMPANY'S BIG UNSECURED CREDITOR CLASS CONSISTING MAINLY OF ITS LARGEST BANKS WAS THE MOST CRITICAL FOR THE PLAN TO GO AHEAD 9301260044 930126 BUSINESS BRIEF PHILIPS ELECTRONICS NV SHAREHOLDER SUITS DISMISSED AFTER MOTION BY PLAINTIFFS A FEDERAL JUDGE IN NEW YORK DISMISSED A GROUP OF SHAREHOLDER LAWSUITS FILED IN JUNE AGAINST PHILIPS ELECTRONICS NV IN THE WAKE OF A POOR EARNINGS ANNOUNCEMENT BY THE DUTCH COMPANY THE LAWSUITS WHICH SOUGHT CLASSACTION STATUS ON BEHALF OF INVESTORS WHO BOUGHT PHILIPS SHARES REGISTERED IN NEW YORK FROM LAST FEB 28 THROUGH JUNE 16 ALLEGED THAT TOP OFFICERS AT THE COMPANY MISLED THEM BY PAINTING ROSY EARNINGS ESTIMATES WHEN PHILIPS ANNOUNCED IN JUNE THAT IT EXPECTED POOR SECONDQUARTER EARNINGS ITS STOCK PRICE DROPPED 23 THE COMPANY'S SHARES ARE TRADED IN THE US IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS JUDGE THOMAS P GRIESA DISMISSED THE SUITS AFTER AN UNUSUAL REQUEST BY THE PLAINTIFFS' LAWYERS FOR DISMISSAL PHILIPS BASED IN EINDHOVEN NETHERLANDS SAID IN A STATEMENT AFTER SUBSTANTIAL DISCOVERY PLAINTIFFS SOUGHT DISMISSAL OF THE ACTION APPARENTLY CONCLUDING THAT THE CLAIMS LACKED ANY MERIT THE LEAD ATTORNEY FOR THE SHAREHOLDERS IN THE CASE DID NOT RETURN A PHONE CALL SEEKING COMMENT 9301260043 930126 WHAT'S NEWS BUSINESS AND FINANCE BOND PRICES SURGED PUSHING LONGTERM INTEREST RATES TO THEIR LOWEST LEVELS IN MORE THAN SIX YEARS AND SENDING STOCKS UP SHARPLY THE BENCHMARK 30YEAR TREASURY BOND'S PRICE ROSE 1 1/4 POINTS AND ITS YIELD SLID TO 719 THE DOW JONES INDUSTRIALS CLIMBED 3539 POINTS TO 329220 THE DOLLAR FELL AMERICAN EXPRESS RETAINED JAMES ROBINSON III AS CHAIRMAN AND GAVE THE POST OF CEO TO HIS HANDPICKED SUCCESSOR HARVEY GOLUB ROBINSON'S VICTORY CAME JUST FOUR MONTHS AFTER THE DIRECTORS SEEMED READY TO OUST HIM THE BOARD DEMOTED THE SON OF AN EXCHAIRMAN WHO OPPOSED ROBINSON'S PLANS THE CHICAGO BOARD OF TRADE TENTATIVELY AGREED TO ACQUIRE THE FALTERING COMMODITY EXCHANGE IN NEW YORK POSSIBLY SIGNALING A SERIES OF CONSOLIDATIONS OF US COMMODITY MARKETS OIL PRICES RALLIED AFTER SAUDI ARABIA AND IRAN CALLED FOR CUTS IN OPEC'S OUTPUT SEPARATELY SEVERAL BIG OIL COMPANIES REPORTED SHARP INCREASES IN FOURTHQUARTER EARNINGS OIL STOCKS CLIMBED ON BOTH PIECES OF NEWS SHELL OIL'S APPEAL OF A JURY VERDICT REQUIRING IT TO PAY AN ESTIMATED 1 BILLION TO CLEAN UP A TOXIC WASTE SITE WAS MOSTLY REJECTED BY A CALIFORNIA COURT BUT A RETRIAL ON ONE ISSUE COULD SAVE SHELL SEVERAL HUNDRED MILLION DOLLARS CLINTON OFFICIALS ARE FINDING IT DIFFICULT TO FILL THE TREASURY'S TOP TAX POST PARTLY BECAUSE NEW ETHICS RULES WOULD BAR THE OFFICEHOLDER FROM DEALING WITH THE IRS AFTER LEAVING THE GOVERNMENT THE PROBLEMS THREATEN TO DELAY THE PRESIDENT'S ECONOMIC RECOVERY PLAN SALES OF USBUILT CARS AND LIGHT TRUCKS JUMPED 22 IN MIDJANUARY FROM A YEAR EARLIER BUT WERE DOWN FROM THE LEVEL RECORDED IN DECEMBER MERRILL LYNCH WAS ORDERED BY A JUDGE TO GIVE THE IRS THE FILES OF CORPORATE CLIENTS THAT PARTICIPATED IN A TAX SHELTER THE FIRM BEGAN PROMOTING IN THE LATE 1980S SEPARATELY MERRILL'S PROFIT ROSE 30 IN THE FOURTH QUARTER THE SUPREME COURT LIMITED A US TAX BREAK FOR ENERGY INVESTORS SAVING THE GOVERNMENT AN AMOUNT ESTIMATED AT MORE THAN 1 BILLION A YEAR PFIZER PROMISED TO LIMIT PRICE INCREASES ON ITS PRESCRIPTION DRUGS TO LESS THAN 3 THIS YEAR JOINING A GROWING LIST OF DRUG COMPANIES THAT HAVE PLEDGED TO HOLD DOWN PRICES JAPAN'S FINANCE MINISTRY IS BUYING JAPANESE GOVERNMENT BONDS IN AN APPARENT EFFORT TO DRIVE DOWN INTEREST RATES WITHOUT THE CENTRAL BANK'S HELP A TOP JAPANESE TRADE OFFICIAL SAID JAPAN SHOULD RETALIATE AGAINST THE US IF CLINTON IS TOO TOUGH ON TRADE THE OFFICIAL EXPRESSED CONCERN ABOUT THE POSSIBLE REVIVAL OF A US MEASURE ALLOWING FOR TRADE SANCTIONS FAMILYLEAVE LEGISLATION IS LIKELY TO BE ENACTED NEXT MONTH LAWMAKERS SAY THE BILL WOULD REQUIRE COMPANIES WITH 50 OR MORE WORKERS TO OFFER THEM 12 WEEKS OF UNPAID LEAVE TO CARE FOR A NEW CHILD OR A SICK FAMILY MEMBER BONDS LEHMAN BROTHERS TREASURY INDEX 482305 UP 5243 COMMODITIES OIL 1966 A BARREL UP 83 CENTS DOW JONES FUTURES INDEX 12052 OFF 098 SPOT INDEX 12218 OFF 094 DOLLAR 12345 YEN OFF 165 15770 MARKS OFF 00135 9301260042 930126 BUSINESS BRIEF FREEPORTMCMORAN COPPER & GOLD INDONESIAN SUBSIDIARY AGREES TO SELL 200 MILLION OF ASSETS FREEPORTMCMORAN COPPER & GOLD INC NEW ORLEANS SAID ITS INDONESIAN OPERATING SUBSIDIARY SIGNED A LETTER OF INTENT TO SELL 200 MILLION IN SHOPPING CENTERS COMMERCIAL BUILDINGS HOUSING AND OTHER PROPERTIES THE AGREEMENT SIGNED WITH ALATIEF CORP IN JAKARTA COVERS CERTAIN EXISTING ASSETS AND OTHERS THAT ARE TO BE CONSTRUCTED UNDER AN ENHANCED INFRASTRUCTURE PROGRAM BY PT FREEPORT INDONESIA CO THE INDONESIAN SUBSIDIARY UNDER THE PROPOSED TRANSACTION WITH ALATIEF ONE OF INDONESIA'S LARGEST RETAIL PROPERTY MANAGEMENT AND REAL ESTATE DEVELOPMENT COMPANIES ALATIEF WILL PROVIDE A MAJOR PORTION OF THE SUPPORT SERVICES FREEPORTMCMORAN COPPER NEEDS FOR ITS ACTIVITIES AND EMPLOYEES IN INDONESIA AS IT EXPANDS ITS OPERATIONS IN IRIAN JAYA FREEPORTMCMORAN COPPER SAID AN OFFERING OF 160 MILLION IN SENIOR DISCOUNT NOTES REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION IN LATE DECEMBER WILL BECOME UNNECESSARY ONCE IT HAS A DEFINITIVE AGREEMENT WITH ALATIEF 9301260041 930126 BUSINESS BRIEF PAGING NETWORK INC OPERATING CASH FLOW IS SEEN RISING 19 FOR 4TH QUARTER PAGING NETWORK INC EXPECTS TO REPORT A 19 RISE IN OPERATING CASH FLOW FOR THE FOURTH QUARTER TO ABOUT 20 MILLION FROM 168 MILLION A YEAR EARLIER AFTER INTEREST EXPENSE TAXES DEPRECIATION AND AMORTIZATION THE DALLAS PAGING CONCERN EXPECTS TO REPORT A NET LOSS OF ABOUT 4 MILLION OR 12 CENTS A SHARE IT HAD NET INCOME OF 417000 OR ONE CENT A SHARE A YEAR EARLIER COMPANY OFFICIALS FOCUS MORE ON CASH FLOW THAN NET INCOME FIGURES BECAUSE PAGING COMPANIES INCUR HEAVY MARKETING EXPENSES UP FRONT REVENUE ROSE 43 TO 63 MILLION FROM 439 MILLION SAID TERRY L SCOTT CHIEF FINANCIAL OFFICER AS THE COMPANY AGGRESSIVELY ADDED NEW CUSTOMERS AND OPENED NEW MARKETING AREAS IN OVERTHECOUNTER TRADING YESTERDAY PAGENET SHARES PLUNGED 125 TO 29 MR SCOTT SAID HE BELIEVES INVESTORS HAVE BEEN LUMPING PAGING COMPANIES INTO THE SAME GROUP AS CELLULAR PHONE COMPANIES WHICH HAVE BEEN HURT BY CLAIMS THAT MOBILE PHONE USE CAN CAUSE BRAIN TUMORS 9301260040 930126 INTERNATIONAL BRIEF AB VOLVO NORTH AMERICAN EXECUTIVE EXPECTS PROFIT CYCLE BY '95 THE PRESIDENT OF AB VOLVO'S NORTH AMERICAN OPERATIONS SAID HE'S VERY POSITIVE THE COMPANY WORLDWIDE CAN MEET A GOAL OF PROFITABILITY BY 1995 ALBERT R DOWDEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF VOLVO NORTH AMERICA CORP SAID THE COMPANY HAS AN OVERCAPACITY PROBLEM RIGHT NOW BUT THAT'S A SHORTTERM PROBLEM HE ALSO SAID THIS ISN'T A NORMAL YEAR WE'RE IN A BUSINESS CYCLE DEMAND WILL COME BACK THE QUESTION FOR VOLVO AND OTHER CAR MAKERS HE SAID IS DEMAND FOR WHAT MR DOWDEN SAID VOLVO'S CURRENT PRODUCT MIX IS THE BEST WE'VE EVER HAD WE HAVE A LOT OF HOPE IN THIS US MARKET AND WE'VE SEEN SUBSTANTIAL IMPROVEMENTS IN THE CAR AND TRUCK MARKET MR DOWDEN NOTED THAT VOLVO CUT ABOUT 460 PEOPLE FROM A TOTAL NORTH AMERICAN STAFF OF ABOUT 6000 IN 1992 THAT FIGURE INCLUDES THE RECENT CLOSING OF A TRUCK PLANT IN OGDEN UTAH THAT AFFECTED ABOUT 360 PEOPLE 9301260039 930126 BUSINESS BRIEF ZIONS BANCORP NET ROSE 49 IN '92 ON FALL IN NONPERFORMING ASSETS CITING STRONG OPERATING PERFORMANCE AND SIGNIFICANTLY REDUCED NONPERFORMING ASSETS AND RESERVES ZIONS BANCORP REPORTED AN INCREASE OF 49 IN 1992 PROFIT THE SALT LAKE CITY BANK HOLDING CONCERN REPORTED NET INCOME OF 434 MILLION OR 704 A SHARE FOR THE YEAR COMPARED WITH 291 MILLION OR 478 A SHARE FOR THE PREVIOUS YEAR ZIONS SAID FOURTHQUARTER NET ROSE NEARLY 80 TO 144 MILLION OR 231 A SHARE FROM 8 MILLION OR 130 A SHARE THE COMPANY SAID NONPERFORMING ASSETS AT YEAR'S END TOTALED 29 MILLION OR 15 OF TOTAL LOANS LEASES AND OTHER REAL ESTATE OWNED COMPARED WITH 437 MILLION OR 23 A YEAR EARLIER THE RESERVE FOR LOAN LOSSES TOTALED 300 OF NONPERFORMING LOANS AT YEAR'S END HARRIS H SIMMONS PRESIDENT AND CHIEF EXECUTIVE SAID ZIONS IS OPTIMISTIC THAT THE STRONG RESULTS EXPERIENCED IN RECENT QUARTERS WILL CONTINUE INTO 1993 9301260038 930126 BUSINESS BRIEF WEYERHAEUSER CO STRONGER PRICES ENABLE FIRM TO POST FOURTHPERIOD NET WEYERHAEUSER CO CITING STRONGER PULP PRICES AND REVENUE FROM NEW PULP MILLS POSTED FOURTHQUARTER NET INCOME OF 853 MILLION COMPARED WITH A YEARAGO LOSS THE PROFIT WHICH WAS EQUIVALENT TO 42 CENTS A SHARE COMPARED WITH A LOSS OF 2564 MILLION OR 127 A SHARE IN THE YEARAGO QUARTER WHEN THE TACOMA WASH LUMBER AND FINANCIAL SERVICES COMPANY RECORDED A RESTRUCTURING CHARGE OF 283 MILLION STRONG RAW MATERIAL AND CONVERTED WOOD PRICES HELPED REVENUE INCREASE 10 TO 23 BILLION IN THE QUARTER FROM 21 BILLION A YEAR EARLIER REDUCED TIMBER SUPPLY BAD WEATHER AND INCREASED DEMAND BY THE IMPROVING ECONOMY SPURRED PRICES TO HIGH LEVELS THE REAL ESTATE SEGMENT WAS MODESTLY PROFITABLE WITH 33 MILLION IN NET INCOME COMPARED WITH A LOSS OF 166 MILLION A YEAR EARLIER BUT FINANCIAL SERVICES HAD LOWER NET INCOME DOWN 57 TO 91 MILLION FROM 211 MILLION A YEAR EARLIER AS A RESULT OF REDUCED INVESTMENT RETURNS FOR THE YEAR NET INCOME WAS 372 MILLION OR 183 A SHARE COMPARED WITH A LOSS OF 1619 MILLION OR 80 CENTS A SHARE A YEAR EARLIER THE LOSS INCLUDED 344 MILLION IN CHARGES RELATED TO REAL ESTATE WRITEDOWNS LAYOFFS PLANT CLOSINGS AND CLEANUP COSTS REVENUE FOR THE YEAR ROSE 6 TO 92 BILLION FROM 87 BILLION 9301260037 930126 MONDAY'S MARKETS DOW GAINS 3539 POINTS DOLLAR FALLS BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL SURGING BOND PRICES AND A JUMP IN OIL STOCKS SPARKED A BROAD STOCK MARKET RALLY THE DOLLAR WEAKENED THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 3539 POINTS TO 329220 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX JUMPED 390 TO 44001 AND THE NASDAQ COMPOSITE INDEX ROSE 532 TO A RECORD 70695 BONDS PRICES SOARED ON OPTIMISM THAT THE CLINTON ADMINISTRATION WILL CUT THE BUDGET DEFICIT AND LIMIT ANY SPENDING PROGRAM TO STIMULATE THE ECONOMY OIL STOCKS RALLIED ON RISING OIL PRICES AFTER SAUDI ARABIA URGED THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES TO CUT PRODUCTION EXXON JUMPED 2 1/2 TO 60 5/8 AND CHEVRON ADDED 2 1/4 TO 70 GIVING A BOOST TO THE DOW JONES INDUSTRIALS WHAT'S INTERESTING IS THE EXTENT TO WHICH THE DOW INDUSTRIALS ARE PICKING UP MOMENTUM SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SMALL STOCKS ARE STILL BOOMING ALONG BUT THE DOW MAY OUTPERFORM SMALLCAP STOCKS FOR A COUPLE OF MONTHS MR MCALINDEN PREDICTED THAT THE DOW JONES INDUSTRIALS MAY RALLY UNTIL SPRING BUT THEN THE STOCK MARKET MAY BE HEADED FOR TROUBLE I DON'T THINK IT WILL BE THE END OF THE BULL MARKET BUT THERE COULD BE A CORRECTION OF POSSIBLY 5 TO 10 FOR THE BALANCE OF THE YEAR HE SAID AC MOORE PORTFOLIO MANAGER AND STRATEGIST AT ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF SAID THAT THOUGH HE TOO SEES STOCK PRICES PUSHING HIGHER IN THE SHORT TERM HE NOTES THAT THE BULL MARKET IS REACHING A MATURE STAGE YESTERDAY'S BOUNCE PROBABLY DOESN'T SIGNAL A POSITIVE NEW ERA FOR THE MARKET AT THIS POINT HE SAID THERE ARE MANY STOCKS THAT ARE WELL ABOVE THEIR OPTIMUM BUY RANGE AND ANY MOVE NOW REPRESENTS AN EXTENSION OF A MARKET THAT IS ALREADY LONG IN THE TOOTH THE DOLLAR AND MANY EUROPEAN STOCK MARKETS FELL ON GROWING PESSIMISM THAT GERMANY WON'T LOWER INTEREST RATES AS SOON AS MANY INVESTORS HAD HOPED BUT DESPITE THE DECLINES ON EUROPEAN MARKETS THE DOW JONES WORLD STOCK INDEX WAS UP 062 TO 9239 INVESTORS SOLD DOLLARS AND DUMPED EUROPEAN STOCKS AFTER GERMAN WAGE NEGOTIATIONS BROKE DOWN OVER THE WEEKEND FRENCH STOCKS TUMBLED 223 AND GERMAN SHARES DECLINED 116 GERMAN AND FRENCH BONDS ALSO FELL ON PROSPECTS OF A DELAYED REDUCTION IN GERMAN INTEREST RATES THE MARKET IS SAYING THAT IF THE PAY TALKS ARE BREAKING DOWN IT MAKES IT HARDER FOR THE BUNDESBANK TO CUT RATES IN THE SHORT TERM SAID GEOFFREY DENNIS AN INTERNATIONAL ECONOMIST AND STRATEGIST AT JAMES CAPEL BUT MR DENNIS SAID THAT HE EXPECTS A SETTLEMENT TO BE REACHED QUICKLY AND THAT GERMAN INTEREST RATES WILL BE CUT IN FEBRUARY IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 288 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1348 ISSUES ROSE AND 646 FELL THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15770 MARKS AND 12345 YEN COMPARED WITH 15905 MARKS AND 12510 YEN FRIDAY 9301260036 930126 BUSINESS BRIEF GENERAL PUBLIC UTILITIES CORP LOSS OF 455 MILLION POSTED FOR 4TH PERIOD AFTER CHARGE GENERAL PUBLIC UTILITIES CORP REPORTED A LOSS FOR THE FOURTH QUARTER AFTER TAKING CHARGES FOLLOWING AN UNFAVORABLE RATE CASE DECISION BY PENNSYLVANIA REGULATORS FOR THE QUARTER THE PARSIPPANY NJ UTILITY HOLDING COMPANY REPORTED A NET LOSS OF 455 MILLION OR 42 CENTS A SHARE COMPARED WITH A NET LOSS OF 39 MILLION OR FOUR CENTS A SHARE A YEAR AGO REVENUE INCREASED 27 TO 8402 MILLION FOLLOWING THE RATE DECISION GPU TOOK A 99 MILLION OR 89 CENTS A SHARE CHARGE FOR THE FOURTH QUARTER TWO OF ITS OPERATING UNITS HAVE ALREADY ANNOUNCED CHARGES RELATED TO THE RATE DECISION WHICH FORCES THE UTILITIES TO PAY FOR THE DECOMMISSIONING OF THREE MILE ISLAND UNIT 2 WHICH WAS DAMAGED IN A 1979 ACCIDENT THE YEAREARLIER LOSS REFLECTS A 561 MILLION OR 51 CENTS A SHARE CHARGE ALSO RELATED TO THE NUCLEAR POWER UNIT THE RESULTS WERE REPORTED AFTER THE MARKET CLOSED IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY GPU FELL 125 CENTS TO 26125 9301260035 930126 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC FIRM POSTS WIDENED LOSS OF 142 MILLION FOR PERIOD CONSOLIDATED FREIGHTWAYS INC POSTED A WIDENED FOURTHQUARTER LOSS BECAUSE OF RESTRUCTURING AND ACCOUNTINGRELATED CHARGES THE PERIOD'S LOSS WAS 142 MILLION OR 53 CENTS A SHARE COMPARED WITH 67 MILLION OR 28 CENTS A SHARE A YEAR EARLIER THE PALO ALTO CALIF COMPANY TOOK CHARGES TOTALING 278 MILLION FOR POSTRETIREMENT BENEFITS AND RESTRUCTURING OF TRUCKING OPERATIONS REVENUE INCREASED TO 102 BILLION FROM 101 BILLION THE FULLYEAR WIDENED TO 811 MILLION OR 278 A SHARE FROM 404 MILLION OR 152 A SHARE FOR 1991 THE LOSS INCLUDED 70 MILLION IN CHARGES RELATED TO CHANGES IN POSTRETIREMENT NONPENSION BENEFITS REVENUE DECREASED TO 406 BILLION FROM 408 BILLION THE EMERY WORLDWIDE UNIT POSTED ITS FIRST QUARTERLY OPERATING PROFIT SINCE IT WAS ACQUIRED IN 1989 BUT FELL FAR SHORT OF BREAKING EVEN FOR THE YEAR AS THE AIR FREIGHT CARRIER HAD PREDICTED EMERY HAD A LOSS OF 327 MILLION FOR THE YEAR COMPARED WITH A LOSS OF 836 MILLION IN 1991 CONSOLIDATED FREIGHTWAYS SHARES FELL 125 CENTS APIECE TO 18125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9301260034 930126 TECHNOLOGY SYNOPTICS HAD BIG JUMP IN NET IN 4TH PERIOD BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL SYNOPTICS COMMUNICATIONS INC CONTINUING TO BENEFIT FROM THE FASTGROWING MARKET FOR COMPUTER NETWORKING SYSTEMS EXPECTS TO REPORT THAT FOURTHQUARTER PROFIT MORE THAN TRIPLED EXCEEDING MANY ANALYSTS' EXPECTATIONS FOR THE QUARTER ENDED DEC 25 SYNOPTICS EXPECTS TO POST TODAY NET INCOME OF 169 MILLION OR 76 CENTS A SHARE COMPARED WITH 45 MILLION OR 23 CENTS A SHARE A YEAR EARLIER SAID WILLIAM RUEHLE CHIEF FINANCIAL OFFICER IN AN INTERVIEW REVENUE MORE THAN DOUBLED TO 1305 MILLION FROM 639 MILLION HE SAID EXCLUDING A ONETIME CHARGE PERSHARE PROFIT WOULD HAVE BEEN 82 CENTS A SHARE WHICH WAS AT THE HIGH END OF ANALYSTS' ESTIMATES HE SAID ANALYSTS' ESTIMATES AVERAGED ABOUT 73 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC MR RUEHLE DISCLOSED THE COMPANY'S RESULTS YESTERDAY AFTER THE MARKET CLOSED SYNOPTICS SHARES JUMPED 250 TO 9350 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SYNOPTICS' STOCK HAS MORE THAN QUADRUPLED SINCE APRIL THE SANTA CLARA CALIF COMPANY MAKES PARTS AND SOFTWARE THAT ENABLE DESKTOP COMPUTERS TO TALK TO EACH OTHER IN A NETWORK INDUSTRY ANALYSTS SEE A ROBUST MARKET FOR SUCH NETWORKING PRODUCTS BECAUSE NEW COMPUTERS ARE CONTINUALLY BEING SOLD AND MANY NEED TO BE LINKED TO OTHER COMPUTERS THE MARKET FOR THE NETWORKING HUBS THAT SYNOPTICS MAKES IS EXPECTED TO GROW 20 IN 1992 TO ABOUT 703 MILLION SAID JOSEPH NOEL AN ANALYST FOR DATAQUEST INC A MARKET RESEARCH FIRM MR RUEHLE SAID IT'S TOO EARLY TO TELL IF THE COMPANY'S GROWTH WILL MATCH THOSE ESTIMATES SYNOPTICS IS THE MARKET LEADER ACCOUNTING FOR ABOUT A THIRD OF ALL SHIPMENTS DATAQUEST'S MR NOEL SAID SYNOPTICS EXPECTS TO POST A ONETIME CHARGE FOR THE QUARTER OF 23 MILLION DUE TO A 45 MILLION SETTLEMENT OF TWO CLASSACTION SHAREHOLDER LAWSUITS MR RUEHLE SAID INSURANCE CARRIERS PAID HALF THE COST OF THAT SETTLEMENT HE SAID MR RUEHLE SAID THAT ORDERS IN THE CURRENT QUARTER REMAINED STRONG AND THAT THE COMPANY WAS WELL POISED FOR 1993 MR RUEHLE EMPHASIZING THE IMPORTANCE OF CONTINUALLY DEVELOPING NEW PRODUCTS SAID 60 OF 1992 REVENUE RESULTED FROM SALES OF PRODUCTS UNVEILED DURING THE PAST 12 MONTHS THE COMPANY UNVEILED ABOUT 25 NEW PRODUCTS DURING THE YEAR A COMPANY SPOKESWOMAN SAID THOSE NEW PRODUCTS FEATURED PRICES AND PERFORMANCE THAT ALLOWED CUSTOMERS TO PAY FOR ONLY THE FEATURES THEY NEED MR RUEHLE SAID FOR 1992 SYNOPTICS SPENT 43 MILLION ON RESEARCH AND DEVELOPMENT INCLUDING 113 MILLION SPENT IN THE FOURTH QUARTER MR RUEHLE SAID IN 1993 SYNOPTICS' R&D BUDGET IS EXPECTED TO RISE 16 TO 50 MILLION HE SAID IN THE FOURTH QUARTER REVENUE PER EMPLOYEE GREW 56 TO 416000 FROM 266000 IN THE YEAREARLIER QUARTER MR RUEHLE SAID AT THE END OF 1992 THE NUMBER OF COMPANY EMPLOYEES WAS 1250 UP 32 FROM 950 A YEAR AGO HE SAID FOR THE FULL YEAR SYNOPTICS EXPECTS TO POST A 51 RISE IN NET INCOME TO 424 MILLION OR 199 A SHARE FROM 268 MILLION OR 132 A SHARE A YEAR EARLIER REVENUE GREW 57 TO 3888 MILLION FROM 2483 MILLION MR RUEHLE SAID 9301260032 930126 TECHNOLOGY NORTHERN TELECOM GETS NIPPON CONTRACT FOR SWITCHING GEAR TORONTO NORTHERN TELECOM LTD SAID IT WON A 270 MILLION CONTRACT FROM NIPPON TELEGRAPH & TELEPHONE CORP FOR SWITCHING EQUIPMENT DOUBLING NORTHERN TELECOM'S INSTALLED BASE OF SWITCHES IN JAPAN THE CONTRACT IS AN EXTENSION OF A 1986 AGREEMENT AND WOULD CEMENT NORTHERN'S POSITION AS JAPAN'S LEADING FOREIGN SUPPLIER OF THE SOPHISTICATED COMPUTERIZED EXCHANGES THE 1986 CONTRACT FOR THE DMS10 DIGITAL SWITCHES ENABLED NORTHERN TELECOM TO CRACK JAPAN'S MARKET FOR TELECOMMUNICATIONS EQUIPMENT THE DMS10 SWITCH CAPABLE OF PROVIDING SERVICE FOR UP TO 10000 TELEPHONE LINES IS A CENTRAL OFFICE TELEPHONE EXCHANGE ESPECIALLY SUITED TO SUBURBAN AND RURAL COMMUNITIES NIPPON TELEGRAPH IS NOW THE LEADING CUSTOMER FOR DMS10 SWITCHES IN JAPAN NORTHERN TELECOM SAID AMERICAN TELEPHONE & TELEGRAPH CO AND OTHER SUPPLIERS SUCH AS MOTOROLA INC HAVE MADE INROADS IN TRANSMISSION EQUIPMENT AND CELLULAR TELEPHONES BUT THE MARKET FOR SWITCHES WHICH ARE THE BRAINS OF A PUBLIC COMMUNICATIONS SYSTEM IS STILL PRETTY MUCH LOCKED UP BY A FEW JAPANESE SUPPLIERS SUCH AS NEC CORP AND FUJITSU LTD AND BY NORTHERN TELECOM MEANWHILE EUROPEAN SUPPLIERS SUCH AS SWEDEN'S LM ERICSSON AND GERMANY'S SIEMENS AG HAVE BEEN EFFECTIVELY SHUT OUT OF JAPAN THE SECONDLARGEST TELECOMMUNICATIONS MARKET AFTER THE US THE EUROPEANS AREN'T THE ONLY ONES SMARTING OVER NORTHERN'S SUCCESS IN JAPAN WILLIAM AMBROSE PRESIDENT OF PYRAMID RESEARCH INC A CAMBRIDGE MASS RESEARCH FIRM NOTED THAT NEC'S AND FUJITSU'S MARKET SHARES ARE SLIPPING DUE AT LEAST PARTLY TO NORTHERN TELECOM TAKING ITS FIGHT AGAINST THE JAPANESE SUPPLIERS TO THEIR HOME MARKET 9301260031 930126 TREASURY GETS BACKING FOR BAN ON BOND SALES BY THE POSTAL SERVICE WASHINGTON THE JUSTICE DEPARTMENT BACKED THE TREASURY'S AUTHORITY TO BLOCK THE US POSTAL SERVICE FROM SELLING BONDS IN THE CAPITAL MARKETS BUT THE POSTAL AGENCY INDICATED IT WILL PRESS ITS CASE WITH THE NEW ADMINISTRATION IN ITS OPINION THE JUSTICE DEPARTMENT SAID THE TREASURY HAS THE RIGHT OF FIRST REFUSAL TO PURCHASE ANY OBLIGATIONS OFFERED BY THE POSTAL SERVICE THE POSTAL AGENCY WHICH RECENTLY WON A LEGAL BATTLE WITH THE BUSH ADMINISTRATION WHEN A FEDERAL APPEALS COURT ALLOWED THE AGENCY TO GO FORWARD WITH ITS LAWSUIT AGAINST THE POSTAL RATE COMMISSION SAID IT WOULDN'T COMMENT PENDING WORD FROM THE NEW ADMINSTRATION CONCERNING ITS STAND ON THE BORROWING ISSUE THE AGENCY SAID THAT THE JUSTICE DEPARTMENT OPINION WAS ISSUED IN THE FINAL HOURS OF THE LAST DAY OF THE OUTGOING ADMINISTRATION AND THAT BOTH THE AUTHORS AND THE RECIPIENTS OF THE DOCUMENT NO LONGER HOLD OFFICE THE BORROWING DISPUTE ERUPTED LAST FALL WHEN THE POSTAL SERVICE ANNOUNCED PLANS TO SELL AS MUCH AS 5 BILLION OF BONDS IN THE MARKET THE TREASURY OBJECTED AND THE FLAP WAS RESOLVED WITH A REFUNDING PLAN THAT ALLOWED THE POSTAL SERVICE TO SELL CALLABLE DEBT TO THE FFB BUT THE AGENCY'S CONTINUING QUEST TO GAIN ACCESS TO THE BOND MARKET HAS KEPT THE UNDERLYING ISSUE ALIVE SEVERAL KEY LAWMAKERS SIDED LAST FALL WITH THEN TREASURY INCLUDING THENSENATE FINANCE COMMITTEE CHAIRMAN LLOYD BENTSEN WHO IS NOW TREASURY SECRETARY THE POSTAL SERVICE MAINTAINS THAT IT CAN SELL BONDS IN THE MARKET IF THE TREASURY DOESN'T BUY THE SECURITIES WITHIN 15 DAYS OF NOTICE OF THE INTENT TO SELL BONDS THE JUSTICE DEPARTMENT BACKING THE TREASURY SAID A TREASURY DECISION WITHIN 15 DAYS OF NOTICE TO BUY THE BONDS TRIGGERS AN OBLIGATION FOR BOTH PARTIES TO NEGOTIATE IN GOOD FAITH TO AGREEMENT ON THE TERMS AND CONDITION OF THE SALE 9301260030 930126 REVIEW & OUTLOOK EDITORIAL ASIDES ENERGY TAX POLITICS AFTER ONLY THREE DAYS AS TREASURY SECRETARY LLOYD BENTSEN OF TEXAS DECLARED BILL CLINTON'S PROMISED MIDDLECLASS TAX CUT ALL BUT DEAD AND PRAISED A BROADBASED ENERGY TAX THAT WOULD SOCK THAT SAME MIDDLE CLASS RAISING THE COST OF ANYTHING WITH CARBON CONTENT FROM UTILITY BILLS TO AIRLINE TICKETS THE DEFICITOBSESSION NOTWITHSTANDING IF THE ADMINISTRATION PROPOSES AN ENERGY TAX IT WOULD BECOME THE NO 1 ISSUE IN THE MAY 1 TEXAS SENATE RACE THAT WILL BE HELD AS MR CLINTON MARKS HIS 100TH DAY IN OFFICE APPOINTED DEMOCRATIC SENATOR BOB KREUGER MAY WELL RUN AWAY FROM ANY ENERGY LEVY BUT WE SUSPECT THAT MANY TEXAS VOTERS WOULD VOTE AGAINST HIM ANYWAY JUST TO MAKE SURE THAT WASHINGTON GETS THEIR MESSAGE ON ANY MIDDLECLASS TAX HIKE 9301260029 930126 BUSINESS BRIEF HUFFY CORP FIRM EXPECTS 1992 RESULTS TO TRAIL ANALYSTS' ESTIMATES HUFFY CORP SAID IT EXPECTS 1992 EARNINGS BEFORE SPECIAL ITEMS TO BE 90 TO 93 CENTS A FULLY DILUTED SHARE BELOW ANALYSTS' ESTIMATES OF 1 TO 110 A SHARE THE DAYTON OHIO COMPANY CITED A DISAPPOINTING FOURTH QUARTER AT ITS TRUE TEMPER HARDWARE UNIT IN 1991 THE COMPANY HAD NET INCOME OF 198 MILLION OR 141 A FULLY DILUTED SHARE THROUGH THE FIRST NINE MONTHS OF 1992 HUFFY EARNED 125 MILLION OR 91 CENTS A SHARE THE MAKER OF BICYCLES BASKETBALL BACKBOARDS LAWN AND GARDEN TOOLS AND JUVENILE PRODUCTS SAID IT WILL RESTATE ITS 1992 EARNINGS TO INCLUDE AN AFTERTAX CHARGE OF ABOUT 75 MILLION OR 50 CENTS A FULLY DILUTED SHARE TO REFLECT A CHANGE IN ACCOUNTING STANDARDS FOR RETIREE HEALTH BENEFITS 9301260028 930126 SPAIN'S TRADE DEFICIT WIDENS MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS WIDENED 44 IN 1992 TO 360 TRILLION PESETAS 3196 BILLION FROM A 345 TRILLION PESETA TRADE DEFICIT IN 1991 ACCORDING TO THE FINANCE MINISTRY IN DECEMBER THE TRADE DEFICIT SHRANK 27 TO 25160 BILLION PESETAS FROM 25860 BILLION PESETAS IN DECEMBER 1991 THE MINISTRY SAID THROUGHOUT THE YEAR THE DEFICIT HAS SHOWN A VERY SHARP DESCENT REFLECTING A NOTABLY FLEXIBLE AND RAPID RESPONSE TO THE SLOWDOWN IN INTERNAL DEMAND THE MINISTRY SAID EXPORTS ROSE 61 DURING 1992 TO 661 TRILLION PESETAS AND SURGED 14 IN DECEMBER TO 63150 BILLION PESETAS COMPARED WITH THE SAME MONTH IN 1991 THE MINISTRY SAID COMPARATIVE FIGURES WEREN'T PROVIDED IMPORTS INCREASED 55 IN 1992 TO 1021 TRILLION PESETAS AND ROSE 86 IN DECEMBER ALONE TO 88300 BILLION PESETAS FROM THE SAME MONTH A YEAR EARLIER 9301260027 930126 TECHNOLOGY SUPERCOMPUTER SYSTEMS LIKELY TO GO OUT OF BUSINESS EAU CLAIRE WIS JUST WEEKS AFTER INTERNATIONAL BUSINESS MACHINES CORP DECIDED TO WITHDRAW ITS FINANCIAL SUPPORT STEVE S CHEN'S SUPERCOMPUTER SYSTEMS INC SAID IT IS LIKELY TO GO OUT OF BUSINESS MR CHEN A PROMINENT SUPERCOMPUTER DESIGNER WHO LEFT CRAY RESEARCH INC IN 1987 WITH THE GOAL OF CREATING THE WORLD'S FASTEST COMPUTER SAID THAT ALL SSI FACILITIES WERE CLOSED AND ITS 320 EMPLOYEES WERE NOTIFIED OF THEIR DISMISSAL WE HAVE DESIGNED AND TESTED A PROTOTYPE OF WHAT WOULD HAVE BEEN THE WORLD'S FASTEST SUPERCOMPUTER HE SAID IN A NEWS RELEASE IT IS MY HOPE THAT OUR SHARED VISION MAY YET ONE DAY BECOME A REALITY BUT MR CHEN LEFT LITTLE HOPE THAT THE COMPANY COULD CONTINUE SPEAKING BEFORE REPORTERS HERE HE SAID SSI TRIED AND FAILED TO ARRANGE AN INITIAL PUBLIC OFFERING OF STOCK IN RECENT MONTHS SUBSEQUENTLY HE SAID THE COMPANY RETAINED A CONSULTANT TO APPROACH A LARGE NUMBER OF TECHNOLOGY COMPANIES OTHER LARGE CORPORATIONS AND PRIVATE INVESTORS AMONG OTHERS FOR OTHER FORMS OF FINANCING THOSE EFFORTS TOO HAVE FAILED SO FAR ALTHOUGH SSI AND IBM WILL CONTINUE TO PURSUE ADDITIONAL FINANCING WITHIN TWO OR THREE WEEKS IT MAY BE IMPOSSIBLE TO REVERSE THE PATH THAT WE ARE EMBARKING ON TODAY HE SAID ANALYSTS ESTIMATE IBM SPENT MORE THAN 100 MILLION ON MR CHEN'S PROJECT WHICH FELL FAR BEHIND SCHEDULE HIS EFFORTS WERE ALSO UNDERMINED BY GROWING EXCITEMENT IN THE SCIENTIFIC COMMUNITY OVER SOCALLED MASSIVELY PARALLEL MACHINES WHICH STRING TOGETHER THOUSANDS OF LOWCOST PROCESSORS MR CHEN'S PLAN WAS TO DESIGN A COMPUTER BASED ON A MUCH SMALLER NUMBER OF EXTREMELY FAST AND EXPENSIVE PROCESSORS 9301260026 930126 BUSINESS BRIEF SHELL OIL CO'S APPEAL TO PLACE LIABILITY FOR CLEANUP ON INSURERS IS PARTLY BLOCKED A CALIFORNIA APPEALS COURT UPHELD MOST OF A JURY VERDICT REQUIRING SHELL OIL CO RATHER THAN ITS INSURERS TO PAY THE COMPANY'S ESTIMATED 1 BILLION COST OF A TOXICWASTE CLEANUP BUT THE COURT ORDERED A RETRIAL ON ONE ASPECT OF THE CASE THAT COULD TRIM SEVERAL HUNDRED MILLION DOLLARS FROM THE TOTAL THE COURT RULED THAT INSURANCE POLICIES IN EFFECT AFTER 1970 DIDN'T COVER THE POLLUTION AT A FORMER DENVERAREA PESTICIDE MANUFACTURING SITE CALLED THE ROCKY MOUNTAIN ARSENAL BUT THE COURT SAID THE OIL COMPANY COULD TRY AGAIN TO PROVE THAT LESS GENEROUS POLICIES WRITTEN PRIOR TO 1970 COVERED SOME OF THE COSTS UNDER A SETTLEMENT WITH THE FEDERAL GOVERNMENT FIVE YEARS AGO SHELL AGREED TO BE RESPONSIBLE FOR PAYING 50 OF THE FIRST 500 MILLION IN COSTS 35 OF THE NEXT 200 MILLION AND 20 OF ALL ADDITIONAL COSTS BUT SHELL STILL WANTED ABOUT 250 INSURERS TO PAY THE COMPANY'S SHARE IN 1988 SHELL TOOK A RESERVE OF 180 MILLION PRETAX TO PAY FOR ITS SHARE OF THE CLEANUP COSTS AND THE COMPANY HAS ACTUALLY PAID 153 MILLION THROUGH SEPT 30 1992 BECAUSE INSURANCE POLICIES PURCHASED AFTER 1970 OFFERED SHELL THE MOST LIABILITY COVERAGE THE BENEFITS OF THE APPEALS COURT RULING FOR THE ROYAL DUTCH/SHELL GROUP UNIT WILL LIKELY BE LIMITED THE SPOKESMAN FOR HOUSTONBASED SHELL SAID THAT IF THE COMPANY PREVAILS AT THE NEW TRIAL IT COULD RECOVER SEVERAL HUNDRED MILLION DOLLARS FROM PRE1970 INSURERS THE APPEALS COURT ORDERED THE NEW TRIAL ON THE PRE1970 POLICIES BECAUSE IT FOUND THAT THE JURY HAD NOT BEEN GIVEN A CHANCE TO DETERMINE WHETHER SHELL KNEW AT THE TIME THAT IT WAS POLLUTING THE ROCKY MOUNTAIN SITE BARRY L BUNSHOFT A PARTNER AT SAN FRANCISCO'S HANCOCK ROTHERT & BUNSHOFT WHO IS THE LEAD ATTORNEY FOR LLOYD'S OF LONDON AND OTHER LONDONMARKET INSURERS SAID HE WAS CONFIDENT THE INSURERS WOULD PREVAIL AGAIN AT TRIAL HE SAID THE LONDON INSURERS AND TRAVELERS CORP'S TRAVELERS INSURANCE CO UNIT HAD THE GREATEST EXPOSURE IN THE PRE1970 POLICIES IN A STATEMENT TRAVELERS SAID WE ARE CONFIDENT THAT OUR COVERAGE POSITION ON THE EARLIER POLICIES WILL BE UPHELD IN ANY FURTHER APPEALS OR FUTURE PROCEEDINGS IN THE TRIAL COURT 9301260025 930126 WHO'S NEWS KIII COMMUNICATIONS CORP KIII COMMUNICATIONS CORP NEW YORK MICHAELANNE DISCEPOLO 39 YEARS OLD DIRECTOR OF HUMAN RESOURCES WAS NAMED A VICE PRESIDENT AT THIS PUBLISHING COMMUNICATIONS AND MEDIA CONCERN 9301260024 930126 LETTERS TO THE EDITOR ILLEGAL IMMIGRATION LOWERS ALL BOATS I WOULD LIKE TO CORRECT SOME SERIOUS MISINFORMATION IN TIM W FERGUSON'S DEC 29 EDITORIALPAGE ARTICLE CALIFORNIA FEELS ANTIIMMIGRANT TREMORS MR FERGUSON WAS ON THE RIGHT TRACK WHEN HE INDICATED THAT LOS ANGELES TAXPAYERS WERE UNFAIRLY BEING ASKED TO PAY FOR WHAT IS ESSENTIALLY A FEDERAL PROBLEM ILLEGAL IMMIGRATION STUDIES HAVE SHOWN THAT THE BENEFITS PROVIDED TO ILLEGALS FAR EXCEED WHAT THEY MIGHT PAY IN LOCAL TAXES THAT IS EXACTLY THE REASON WHY I AM CALLING FOR MASSIVE FEDERAL ILLEGAL IMMIGRATION IMPACT AID I DID NOT SAY HOWEVER THAT I WANTED TO CUT OFF ALL BENEFITS TO ILLEGALS AS MR FERGUSON CLAIMED THE REAL ISSUE IS HOW SUCH BENEFITS SHOULD BE FINANCED MY ANSWER IS BY THE FEDERAL GOVERNMENT NOT LOCAL TAXPAYERS THIS IS A CRITICAL ECONOMIC ISSUE THAT MUST BE FACED IMMEDIATELY MR FERGUSON ALSO DID NOT DIFFERENTIATE BETWEEN THOSE COMING TO THIS COUNTRY LEGALLY AND THOSE ENTERING ILLEGALLY I CONTINUE TO BE A SUPPORTER OF LEGAL IMMIGRATION WHAT I CANNOT SUPPORT IS THE CONTINUING DECLINE IN OUR SCHOOLS AND MEDICAL FACILITIES BECAUSE OF THE OVERCROWDING CAUSED BY ILLEGAL ALIENS EVERYONE IN LOS ANGELES MUST BE ABLE TO EXPECT A GOOD EDUCATION FOR THEIR CHILDREN AND PROPER MEDICAL CARE CURRENTLY DUE TO SERIOUS FINANCIAL PROBLEMS IN OUR CITY AND STATE PROBLEMS EXACERBATED BY THE INFLUX OF ILLEGAL ALIENS WITH NO OFFSETTING INFLUX IN REVENUES OUR SCHOOLS ARE DANGEROUSLY OVERCROWDED AND OUR MEDICAL FACILITIES CAN NO LONGER DELIVER ADEQUATE CARE TO THE POOR AND MIDDLE CLASS SECTIONS OF OUR CITY THESE ARE PROBLEMS THAT MUST BE FACED AND CERTAINLY MUST BE ADDRESSED BY ANYONE SEEKING PUBLIC OFFICE IN SOUTHERN CALIFORNIA 9301260023 930126 MARKETING BRIEF NOTED NEWSPAPERS PAUL CONRAD 68 A THREETIME PULITZER PRIZEWINNING POLITICAL CARTOONIST WILL RETIRE FROM THE LOS ANGELES TIMES ON MARCH 31 AS PART OF COSTCUTTING EFFORTS BY TIMES MIRROR CO'S FLAGSHIP NEWSPAPER HIS CARTOONS STILL WILL BE DISTRIBUTED TWICE WEEKLY BY THE LOS ANGELES TIMES SYNDICATE THE TIMES OFFERED A VOLUNTARY SEVERANCE PACKAGE TO 5200 MEMBERS OF ITS 7500PERSON WORK FORCE WITH A GOAL OF TRIMMING 500 POSITIONS THROUGH THE BUYOUT AND ATTRITION IT SAID THAT AS OF THE CLOSE OF THE PROGRAM FRIDAY IT'S CLEAR THAT WE MET OUR GOAL 9301260022 930126 INTERNATIONAL BRIEF BOLS WESSANEN WESSANEN AND BOLS CLARIFY SHARESWAP MERGER DETAILS DUTCH FOOD GROUP WESSANEN NV AND DISTILLER DISTILLEERDERIJEN ERVEN LUCAS BOLS NV CLARIFIED DETAILS OF THEIR PREVIOUSLY ANNOUNCED SHARESWAP MERGER WESSANEN SHAREHOLDERS WILL RECEIVE 25 SHARES IN THE NEW COMPANY FOR EACH SHARE THEY CURRENTLY HOLD WHILE EACH SHARE OF BOLS MAY BE EXCHANGED FOR 1185 SHARES IN POSTMERGER BOLS WESSANEN GROUP A WESSANEN SPOKESMAN SAID THOSE TERMS CONTRAST WITH SPECULATION LAST WEEK WHEN THE MERGER PLANS WERE FIRST DISCLOSED THE MARKET HAD BEEN BETTING ON BOLS SHAREHOLDERS RECEIVING ONE NEW SHARE IN THE POSTMERGER COMPANY FOR EVERY TWO THEY CURRENTLY HOLD SUCH AN EXCHANGE WOULD HAVE BEEN QUITE GENEROUS FOR THE BOLS SHAREHOLDERS SINCE WESSANEN IS ABOUT THREE TIMES AS BIG IN TERMS OF SALES THAN BOLS THE COMPANIES IN A JOINT STATEMENT SAID THE CURRENT BOLS SHAREHOLDERS WOULD END UP OWNING ABOUT 455 OF THE NEW COMPANY WHILE WESSANEN HOLDERS WOULD CONTROL 545 THE MERGER WILL RESULT IN A COMPANY WITH EXPECTED TOTAL GLOBAL SALES OF NEARLY 48 BILLION GUILDERS 268 BILLION AND NET PROFIT OF 239 MILLION GUILDERS 9301260021 930126 COMMODITIES COFFEE FUTURES FALL SHARPLY AMID BEARISH NEWS ON LONDON TALKS RUMORS OF LARGE LIQUIDATION BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL COFFEE FUTURES PLUNGED NEARLY SEVEN CENTS A POUND ON WAVES OF HEAVY SELLING THE SHARP DROP OF 675 CENTS TO A SETTLE PRICE OF 5605 CENTS A POUND FOR MARCH DELIVERY CAME AMID BEARISH NEWS OUT OF THE LONDON COFFEE NEGOTIATIONS AND ON RUMORS OF A LARGE LIQUIDATION OF A LONG FUTURES POSITION BY A SINGLE INVESTOR IN LONDON A LONG POSITION IS A BET THAT THE PRICE OF THE FUTURES CONTRACT WILL RISE THE SELLING CAME IN WAVES ON SKEPTICISM OVER THE LONDON TALKS AND THIS COMBINED WITH TECHNICAL FACTORS SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH COFFEE PRODUCERS AND CONSUMERS ARE MEETING IN AN EFFORT TO WORK OUT NEW EXPORT QUOTAS IF SUCCESSFUL SUCH AN AGREEMENT WOULD BOLSTER COFFEE PRICES BUT EXPERTS ARE SKEPTICAL THAT THE PARTIES CAN RESOLVE DIFFERENCES OVER MARKET SHARE AND OTHER ISSUES THAT HAVE STYMIED PREVIOUS NEGOTIATIONS CONSUMERS SEE VERY LITTLE PROGRESS MADE IN THE PRODUCERS' RECOMMENDATIONS ON EXPORT CONTROLS MR O'NEILL SAID HE ADDED THAT THERE'S STILL A GREAT DEAL OF DOUBT THE UNITED STATES WILL GO ALONG WITH ANOTHER AGREEMENT THE LAST INTERNATIONAL COFFEE ORGANIZATION EXPORT ACCORD BROKE DOWN IN JULY 1989 AND TRIGGERED A STEADY DECLINE IN PRICES ANALYSTS SAID THE NEXT PRICE SUPPORT LEVEL WOULD PROBABLY COME AT ABOUT 54 CENTS A POUND A LEVEL LAST TESTED IN LATE SEPTEMBER A RUMOR THAT STARTED IN THE LONDON COMMODITY MARKETS HELD THAT ONE SPECULATOR WHO HAD BEEN HEAVILY LONG COFFEE FUTURES LIQUIDATED SOME 7000 LOTS AND PRECIPITATED HEAVY SELLING OF COFFEE FUTURES IN LONDON THAT SELLING SPILLED OVER TO THE COFFEE SUGAR AND COCOA EXCHANGE IN NEW YORK THERE WAS MASS LIQUIDATION ALL OVER SAID ONE ANALYST IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS SOYBEAN AND WHEAT FUTURES PRICES PLUNGED ON SELLING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTOR MONEY THE SOYBEAN CONTRACT FOR MARCH DELIVERY WAS DOWN FIVE CENTS TO 57625 A BUSHEL WHILE THE MARCH WHEAT CONTRACT FELL FOUR CENTS TO 3835 A BUSHEL A REPORT RELEASED BY THE COMMODITY FUTURES TRADING COMMISSION SHOWED A HEAVY PREFERENCE AMONG SMALL SPECULATORS AT THE CHICAGO BOARD OF TRADE FOR LONG POSITIONS IN SOYBEAN FUTURES CONTRACTS OR BETS THAT SOYBEAN PRICES WILL RISE BECAUSE SMALL INVESTORS INEVITABLY SELL THEIR CONTRACTS RATHER THAN USING THEM TO TAKE DELIVERY OF SOYBEANS THE CBOT'S GRAIN MARKET INTERPRETED THE REPORT AS BEARISH COMMODITY FUNDS WERE BIG SELLERS IN BOTH THE SOYBEAN AND WHEAT FUTURES PITS ANALYSTS SAID COCOA COCOA FUTURES PRICES WHICH SURGED LAST WEEK ON REPORTS THAT WORLDWIDE DEMAND WOULD STRONGLY OUTSTRIP PRODUCTION THIS YEAR TUMBLED 56 A TON ON INDICATORS THAT NIGERIA'S CROP WILL BE MUCH LARGER THAN EXPECTED ON THE COFFEE SUGAR AND COCOA EXCHANGE COCOA FOR MARCH DELIVERY CLOSED AT 943 A TON ANALYSTS SAID THAT NIGERIA IS NOW EXPECTED TO PRODUCE 140000 TONS A YEAR UP SHARPLY FROM AN ESTIMATED 100000 TONS COCOA FUTURES ON THE ACTIVELY TRADED MARCH CONTRACT ENDED THE YEAR AT LEVELS AROUND 917 A TON TRADERS SAID THAT THE MARKET RETAINS A BULLISH TONE AND THAT A NEARTERM RETESTING OF THE YEAREND LEVEL IS UNLIKELY 9301260020 930126 FINANCING BUSINESS ELECTRONICS FOR IMAGING INC ELECTRONICS FOR IMAGING INC SAN MATEO CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING THE PROPOSED PUBLIC OFFERING OF AS MANY AS 25 MILLION COMMON SHARES CURRENTLY THE COMPANY HAS ABOUT 96 MILLION COMMON SHARES OUTSTANDING OF THE SHARES BEING OFFERED THE COMPANY SAID IT WILL SELL ONE MILLION WITH CERTAIN SELLING SHAREHOLDERS SELLING THE REMAINING 15 MILLION SHARES PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL THE DESIGNER AND MARKETER OF COLORPROCESSING AND PRINTING PROGRAMS SAID THE UNDERWRITING GROUP WILL BE LED BY ROBERTSON STEPHENS & CO PRUDENTIAL SECURITIES INC AND UNTERBERG HARRIS 9301260019 930126 POLITICS & POLICY ENERGY INTERESTS MOBILIZE AGAINST A NEW TAX BUT REAL FIGHT MAY FOCUS ON WHAT FORM IT TAKES BY DAVID WESSEL AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON NOTHING FIRES UP THE ENERGY INDUSTRY LIKE TALK OF TAXING WHAT IT SELLS BUT ENERGY INTERESTS MAY SPEND AS MUCH TIME FIGHTING ONE ANOTHER AS THEY DO FIGHTING THE NEW ADMINISTRATION IF THEY HAD THEIR DRUTHERS ALL SEGMENTS OF THE ENERGY BUSINESS WOULD HAVE PRESIDENT CLINTON TRY SOMETHING BESIDES ENERGY TAXES TO SHRINK THE DEFICIT BUT AS ENERGY TAXES BECOME MORE LIKELY A SCRAMBLE IS BEGINNING OVER WHAT FORM THE TAXES TAKE TAXING GASOLINE LEAVES OUT COAL AND NATURAL GAS TAXING CARBON HITS COAL PARTICULARLY HARD TAXING ENERGY AS A PERCENTAGE OF THE PRICE IS HARDER ON OIL IT'S EASY FOR AN ASSOCIATION SUCH AS OURS TO OPPOSE ALL ENERGY TAXES SAYS JOHN ANDERSON EXECUTIVE DIRECTOR OF THE ELECTRIC CONSUMERS RESOURCE COUNCIL WHICH INCLUDES 22 BIG COMPANIES THAT TOGETHER ACCOUNT FOR MORE THAN 4 OF THE NATION'S ELECTRICITY CONSUMPTION BUT GIVEN THAT UTILITIES RELY ON DIFFERENT FUELS IT ISN'T EASY TO SELECT ONE TAX AS BEING THE ONE THAT OUGHT TO BE IMPLEMENTED HE SAYS THE CLINTON ADMINISTRATION HAS BEEN CONSIDERING A NEW ENERGY TAX AS A CRITICAL PIECE OF ITS DEFICITREDUCTION PLANS BUT THE IDEA BURST INTO THE HEADLINES WHEN TREASURY SECRETARY LLOYD BENTSEN SAID SO ON NATIONAL TELEVISION OVER THE WEEKEND PRESIDENT CLINTON SEEMED A LITTLE SURPRISED BY ALL THE ATTENTION TO MR BENTSEN'S COMMENTS I THOUGHT HE DID A VERY GOOD JOB ON TELEVISION HE TOLD REPORTERS I WASN'T SURE THAT I WAS READING ABOUT THE SAME INTERVIEW IN THE PRESS THIS MORNING HE SAID THAT NO DECISION HAS BEEN MADE AND NO DECISION HAS BEEN MADE BUT ADMINISTRATION INSIDERS SAY THE APPEAL OF A BROADBASED ENERGY TAX IS CLEAR COMPARED WITH AN INCREASE IN GASOLINE TAXES IT WOULD BE MUCH LESS VISIBLE TO THE CONSUMER AND WOULD SPREAD THE PAIN ACROSS THE ECONOMY IT ALSO COULD BE SOLD TO THE PUBLIC AS A WAY TO PROMOTE CONSERVATION AND HELP THE ENVIRONMENT WHILE RAISING REVENUE BUT THAT'S NOT MUCH COMFORT TO THE INDUSTRIES THAT PRODUCE ENERGY OR USE IT HEAVILY THE AIR TRANSPORT ASSOCIATION WARNED MR BENTSEN IN A LETTER THAT AN ENERGY TAX WOULD MEAN MORE RED INK MORE LAYOFFS AND MORE CANCELED ORDERS FOR NEW AIRCRAFT THE NATIONAL COAL ASSOCIATION DUSTED OFF STUDIES THAT DEMONSTRATE THAT A CARBON TAX WOULD WIPE OUT JOBS THE AMERICAN GAS ASSOCIATION REMINDED THE PRESIDENT OF HIS CAMPAIGN PRAISE OF NATURAL GAS AS A CLEAN DOMESTICALLY PRODUCED FUEL THE AMERICAN PETROLEUM INSTITUTE IN THE SPIRIT OF SHARED SACRIFICE URGED MR CLINTON TO IMPOSE A NATIONAL SALES TAX INSTEAD OF AN ENERGY TAX AND THE COALITION ON ENERGY TAXES A GROUP OF GIANT ENERGY PRODUCERS AND CONSUMERS THAT IS A VETERAN OF PAST BATTLES MEETS LATER THIS WEEK TO PLOT STRATEGY ON CAPITOL HILL A GROUP OF SENATORS SOME FROM ENERGYPRODUCING STATES CALLED A NEWS CONFERENCE TO URGE TAXES ON ALL CONSUMPTION RATHER THAN JUST ENERGY WE START TO DIVIDE THIS COUNTRY BY REGION I DON'T THINK THAT WOULD BE WISE SAID SEN DAVID BOREN D OKLA A MEMBER OF THE SENATE FINANCE COMMITTEE ANOTHER FINANCE COMMITTEE MEMBER SEN JOHN DANFORTH R MO ARGUED THAT A BROAD TAX ON ALL FORMS OF CONSUMPTION WOULD BE INFINITELY EASIER TO PASS MANY ECONOMISTS ADVOCATE TAXING ALL FORMS OF CONSUMPTION IN PART ON THE HOPE THAT IT WILL ENCOURAGE AMERICANS TO SPEND LESS AND SAVE MORE BUT IT ISN'T CLEAR THAT TAXING ENERGY WILL ACHIEVE THAT GOAL IT'S HARD FOR ME TO IMAGINE THAT IF YOU START TAXING ENERGY YOU'RE GOING TO GET A HIGHER SAVINGS RATE SAYS PRINCETON ECONOMIST HARVEY ROSEN BUT THE CLINTON ADMINISTRATION ISN'T LOOKING AT BROAD CONSUMPTION TAXES TO RAISE ENERGY TAXES IT HAS FIVE MAIN CHOICES RAISE THE FEDERAL GASOLINE TAX IMPOSE AN OIL IMPORT FEE TAX ALL FUELS THAT CONTAIN CARBON WHICH IS BELIEVED TO CONTRIBUTE TO GLOBAL WARMING TAX ENERGY BASED ON HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS LEVY A TAX ON ALL FORMS OF ENERGY AS A PERCENTAGE OF THE PRICE IF WHAT CLINTON WANTS IS A QUICK ONEYEAR FIX THEN HE IS GOING TO FOCUS ON A 10CENT OR 15CENT INCREASE IN THE GASOLINE TAX SAYS ADAM SIEMINSKI AN ANALYST AT NATWEST SECURITIES CORP'S WASHINGTON ANALYSIS GROUP IF HE WANTS A MULTIYEAR PLAN TO MAKE A CONCERTED EFFORT ON THE DEFICIT THEN A BROAD ENERGY TAX AT THE PRODUCER LEVEL MAKES MORE SENSE A GASOLINE TAX OF COURSE WOULD PRIMARILY AFFECT DRIVERS TO RAISE 10 BILLION A YEAR AND MR CLINTON MAY NEED MORE THAN THAT FROM AN ENERGY TAX IF HE IS TO MEET HIS DEFICIT TARGETS THE GOVERNMENT WOULD HAVE TO RAISE THE 141CENTAGALLON FEDERAL GASOLINE TAX BY 10 CENTS A GALLON THE GOVERNMENT COULD ALSO RAISE 10 BILLION BY LEVYING A 5 SALES TAX ON ALL ENERGY BASED ON THE PRICE AT THE PRODUCER LEVEL THAT WOULD ADD ABOUT 1 TO THE PRICE OF A BARREL OF OILROUGHLY 2 1/2 CENTS A GALLON AT THE GAS PUMP IT WOULD INCREASE THE PRICE OF COAL BY 115 A TON AND THE PRICE OF NATURAL GAS BY NINE CENTS A THOUSAND CUBIC FEET CURRENTLY OIL COSTS ABOUT 20 A BARREL COAL ABOUT 23 A TON AND NATURAL GAS ABOUT 175 A THOUSAND CUBIC FEET AT THE PRODUCER LEVEL ALTERNATIVELY THE GOVERNMENT COULD TAX THE HEAT CONTENT OF FUEL AS MEASURED IN BRITISH THERMAL UNITS TO RAISE 10 BILLION MR SIEMINSKI FIGURES IT WOULD ADD ONLY 68 CENTS TO THE PRICE OF A BARREL OF OIL BUT 250 TO EACH TON OF COAL AND 12 CENTS FOR EVERY THOUSAND CUBIC FEET OF NATURAL GAS SUCH A TAX IS THE FAIREST WAY OF GOING BECAUSE IT TREATS EVERYTHING THE SAME SAYS ED ROTHSCHILD ENERGY POLICY DIRECTOR FOR THE CONSUMER ADVOCACY GROUP CITIZEN ACTION BUT ENVIRONMENTAL GROUPS POINTED OUT IN A LETTER THEY SENT TO MR CLINTON EARLIER THIS MONTH THAT TAXING ALL KINDS OF ENERGY WOULDN'T APPROPRIATELY DIFFERENTIATE BETWEEN CLEAN AND DIRTY TYPES OF ENERGY ALL ENERGY TAXES ARE NOT CREATED EQUAL DAN LASHOFF OF THE NATURAL RESOURCES DEFENSE COUNCIL SAYS IN AN INTERVIEW BETTER TO TAX CARBON HE SAYS BUT A CARBON TAX WOULD HIT COAL PARTICULARLY HARD A 10 BILLION CARBON TAX WOULD ADD 360 TO THE PRICE OF A TON OF COAL 77 CENTS TO A BARREL OF OIL AND 10 CENTS TO A THOUSAND FEET OF NATURAL GAS PEOPLE SAY A CARBON TAX IS A BROAD TAX BUT IT'S NOT SAYS BILL SAMUEL A LOBBYIST FOR THE UNITED MINE WORKERS OF AMERICA IT WOULD BE TARGETED RIGHT AT THOSE AREAS THAT EITHER MINE COAL OR BURN COAL THE CLINTON ADMINISTRATION IS LEANING TOWARD THE BTU TAX BUT NO MATTER WHICH FORM OF ENERGY TAX IT PICKS IT'S CLEAR THAT THE MIDDLE CLASS WILL PAY THE PRICE AS BUSINESSES PASS IT ALONG THE AVERAGE US HOUSEHOLD SPENT ABOUT 29600 IN 1991 THE BUREAU OF LABOR STATISTICS SAYS OF THAT ABOUT 2150 WENT DIRECTLY TO PAY ENERGY BILLS SO A 10 BILLIONAYEAR ENERGY TAX IF ALL OF IT IS PASSED ALONG TO CONSUMERS COULD COST THE TYPICAL HOUSEHOLD ROUGHLY 100 ANNUALLY IN THE CAMPAIGN BILL CLINTON CALLED FOR A MIDDLECLASS TAX CUT ROBERT S MCINTYRE OF THE LABORBACKED CITIZENS FOR TAX JUSTICE SAID NOW LESS THAN A WEEK INTO THE NEW ADMINISTRATION LLOYD BENTSEN SAYS FORGET THE TAX CUT WHAT CLINTON REALLY WANTS IS A MIDDLECLASS TAX INCREASE THAT'S A PRETTY AMAZING FLIPFLOP POOR PEOPLE WHO SPEND A LARGER SHARE OF THEIR INCOME ON ENERGY THAN THE RICH DO COULD BE HIT EVEN HARDER BASED ON FEDERAL STATISTICS CITIZEN ACTION'S MR ROTHSCHILD ESTIMATES THAT FAMILIES EARNING LESS THAN 10000 A YEAR SPEND ABOUT 10 OF THEIR INCOME ON ENERGY NOT COUNTING GASOLINE WHILE THOSE MAKING 50000 OR MORE SPEND LESS THAN 3 OF THEIR INCOME BUT MR CLINTON'S ADVISERS SAY THEY WOULD TRY TO PROTECT THE POOR ROBERT GREENSTEIN DIRECTOR OF THE CENTER ON BUDGET AND POLICY PRIORITIES SAYS THE ADMINISTRATION COULD COMPENSATE THE POOR BY INCREASING THE AMOUNT OF FOOD STAMPS IT GIVES LOWINCOME FAMILIES AND SWEETENING THE EARNEDINCOME TAX CREDIT WHICH IS TARGETED AT WORKING POOR FAMILIES WITH CHILDREN TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9301260018 930126 BUSINESS BRIEF FOUNDATION HEALTH CORP FIRM'S PROFIT FELL 23 FOR FISCAL 2ND QUARTER FOUNDATION HEALTH CORP SAID ONETIME CHARGES RELATED TO ACQUISITIONS DEPRESSED FISCAL SECONDQUARTER NET INCOME BY 23 TO 96 MILLION OR 32 CENTS A SHARE FROM 125 MILLION OR 46 CENTS A SHARE IN THE YEAREARLIER PERIOD THE HEALTHCARE SERVICES CONCERN IN RANCHO CORDOVA CALIF SAID REVENUE FOR THE QUARTER ENDED DEC 31 ROSE 44 TO 3341 MILLION FROM 320 MILLION THE PRETAX CHARGES FROM THE ACQUISITIONS OF CENTURY MEDICORP INC AND OCCUPATIONAL HEALTH SERVICES INC WERE 124 MILLION THE COMPANY SAID PREVIOUSLY FOUNDATION HEALTH SAID IT EXPECTED THE ACQUISITIONS WOULD CAUSE A MINIMAL FIRSTYEAR DILUTION OF EARNINGS FOR THE SIX MONTHS THE COMPANY REPORTED NET OF 243 MILLION OR 81 CENTS A SHARE COMPARED WITH 24 MILLION OR 89 CENTS A SHARE A YEAR EARLIER IN THE MOST RECENT PERIOD OPERATING PROFIT BEFORE THE CHARGE WAS 335 MILLION OR 111 A SHARE REVENUE FOR THE SIX MONTHS WAS 6829 MILLION COMPARED WITH 6272 MILLION 9301260017 930126 BELGIUM'S GENERALE DE BANQUE BRUSSELS BELGIUM'S GENERALE DE BANQUE GROUP PROFIT WILL BE HIGHER IN 1992 THAN THE PREVIOUS YEAR AND IS IN LINE WITH FORECASTS SAID FERDINAND CHAFFART CHIEF EXECUTIVE OFFICER IN A SPEECH MR CHAFFART SAID THE COMMERCIAL BANK WOULD CONTINUE TO CUT COSTS TO IMPROVE PROFITABILITY OUR STRATEGY IN BELGIUM AND ABROAD AND THE MEASURES TAKEN TO IMPROVE OUR PROFITABILITY ARE ALREADY BEARING FRUIT HE SAID 9301260016 930126 REVIEW & OUTLOOK EDITORIAL ZOE'S CHILD CARE LESSONS PEOPLE ARE GOING TO DRAW MANY DIFFERENT LESSONS FROM THE BAIRD AFFAIR ONE THAT DESERVES A LOT MORE SERIOUS ANALYSIS THAN IT IS LIKELY TO GET IS THE HIGH COST AND DIFFICULTY OF SECURING ADEQUATE DAYTIME CARE FOR CHILDREN AT ALL INCOME LEVELS NEEDLESS TO SAY CHILD CARE IS AN ISSUE DIVIDED ALONG POLITICAL LINES DEMOCRATS OR AT LEAST LIBERAL DEMOCRATS OF THE SORT NORMALLY FOUND AROUND WASHINGTON'S PUBLICINTEREST GROUPS HAVE LONG FAVORED A SYSTEM OF PUBLICLY SUBSIDIZED CHILD CARE REPUBLICANS AND CONSERVATIVES WORRY ABOUT THE NOTION THAT UNCLE SAM SHOULD BE THE NATION'S BIG NANNY OR AT LEAST THE FINANCIAL OVERSEER FOR A NATIONWIDE SYSTEM OF CHILD CARE CENTERS BUT IN FACT THERE ALREADY IS A CONSIDERABLE AMOUNT OF CHILD CARE LEGISLATION AND REGULATION ON THE BOOKS AND IT'S HARDLY SURPRISING TO DISCOVER THAT WHEN A BUREAUCRACY LAYS ITS HANDS ON SOMETHING LIKE THIS THE FINANCIAL IMPEDIMENTS TO CHILD CARE BEGIN TO PROLIFERATE THESE AND OTHER REGULATIONS HAVE ALREADY MADE IT UNNECESSARILY DIFFICULT FOR PARENTS TO PROVIDE TRUSTWORTHY CARE INDEED EVEN A MOTHER WHO WANTS TO WORK IN HER HOME SO AS TO BE CLOSER TO THE KIDS ENCOUNTERS REGULATORY OPPOSITION AS WE NOTED IN AN EDITORIAL EARLIER THIS MONTH UNFINISHED HOMEWORK JAN 6 ABOLISHING FOOLISH LABOR LAWS THAT BAN HOMEBASED WORK IN SOME OCCUPATIONS WOULD ALLOW MORE PARENTS TO STAY AT HOME WITH THEIR CHILDREN HOWEVER GROUPS SUCH AS THE INTERNATIONAL LADIES GARMENT WORKERS' UNION CONTINUE TO SUPPORT SUCH ANTIFAMILY RESTRICTIONS WITH SOME ENLIGHTENED EXCEPTIONS MANY STATES STILL TIE UP DAYCARE CENTERS IN RED TAPE MASSACHUSETTS HAS 31 PAGES OF RULES MARYLAND SHUT DOWN ONE DAYCARE CENTER BECAUSE IT HAD FOUR SMOKE DETECTORS INSTEAD OF A 2500 STATEMANDATED SYSTEM THE NET RESULT OF ALL THESE RULES IS THAT PARENTS ARE FORCED TO PAY MORE FOR DAY CARE AND THEY CAN'T CHOOSE THE EXACT TYPE AND AMOUNT OF CARE THEY BELIEVE BEST RIGID ZONING RULES ALSO PREVENT LIVING ARRANGEMENTS THAT WOULD MAKE IT EASIER FOR RELATIVES OR ELDERLY PEOPLE TO MOVE IN AND CARE FOR CHILDREN ACCESSORY APARTMENTS ROOMS WITH THEIR OWN KITCHENS AND BATHROOMS ATTACHED TO SINGLEFAMILY HOMES HAVE LONG BEEN PART OF THE HOUSING MIX IN EUROPE AND ARE ENCOURAGED GERMANY OFFERS A TAX CREDIT FOR SUCH ROOMS IN BRITAIN AND FINLAND THE RENTAL INCOME FROM FURNISHED APARTMENTS IN PRIVATE HOMES IS TAX EXEMPT IN THE US LOCAL ZONING LAWS OFTEN PROHIBIT ACCESSORY APARTMENTS THIS NEEDLESSLY INCREASES THE COST OF HOUSING BECAUSE IT IS CHEAPER TO INSTALL A KITCHEN AND OTHER IMPROVEMENTS IN A LITTLEUSED HOUSE THAN TO BUILD SOMETHING NEW THE LACK OF ACCESSORY APARTMENTS ALSO DISCOURAGES MANY OLDER RELATIVES OF FAMILIES WITH CHILDREN FROM MOVING IN AND CARING FOR THE KIDS A NEWSWEEK POLL REPORTS THAT ONLY 18 OF AMERICANS HAVE A RELATIVE OTHER THAN A PARENT STAY WITH THEIR CHILD IF ACCESSORY APARTMENTS WERE MORE AVAILABLE MANY RETIREES MIGHT FREE UP THEIR LARGE HOMES MOVE IN WITH RELATIVES AND STILL ENJOY PRIVATE LIVING QUARTERS BRINGING BACK THE BABUSHKA WOULD REALLY IMPROVE DAY CARE SAYS GEORGE LIEBMANN A BALTIMORE HOUSING LAWYER WHAT ABOUT CHILD CARE IN THE HOME THE OPTION MS BAIRD SELECTED HERE TOO RED TAPE CAN LOCK OUT FAMILIES INHOME CARE IS EXPENSIVE BUT MANY FAMILIES PREFER IT DOUBTING THAT THE CASE HAS BEEN MADE FOR ALLDAY CHILD CARE CENTERS NO MATTER HOW SUBSIDIZED A FEDERAL PROGRAM THAT OFFERS A DEPENDENT CARE TAX DEDUCTION OF 5000 A YEAR TO FAMILIES ALLOWS THEM TO USE THAT BREAK TO PAY FOR NANNIES NEVERTHELESS MANY FAMILIES THAT MIGHT BE ABLE TO AFFORD A NANNY AT HOME WITH THE HELP OF THIS PROGRAM CAN'T USE IT THE REASON THE TAX BREAK IS AVAILABLE ONLY WHEN EMPLOYERS PROVIDE A TAXPAYER IDENTIFICATION NUMBER FOR THE PERSON THEY HAVE HIRED IN OTHER WORDS EVEN FAMILIES WHO DECLARE THEIR ILLEGAL NANNIES TO THE IRS DON'T DARE TRY TO CLAIM THAT BENEFIT BECAUSE THOSE ILLEGAL NANNIES ARE NOT ENTITLED TO A SOCIAL SECURITY NUMBER WHAT IS MOST CLEAR ABOUT L'AFFAIRE BAIRD IS THAT HER SITUATION HAD LITTLE BEARING ON THE CHILDCARE PROBLEMS OF MOST FAMILIES ONLY 1 OF AMERICANS EMPLOY A LIVEIN NANNY THEORETICALLY SOME GOOD COULD COME OUT OF ZOE BAIRD'S TROUBLES IF THEY PROMPTED PUBLIC OFFICIALS TO LIFT SOME OF THE ARTIFICIAL IMPEDIMENTS TO LOWCOST QUALITY CHILD CARE THAT BEDEVIL FAMILIES AS WE SUGGESTED EARLIER THOUGH THAT WOULD REQUIRE THE DEMOCRATS THAT NOW CONTROL THE GOVERNMENT IN WASHINGTON TO HONESTLY RECONSIDER THE AMOUNT OF RULE COMPLIANCE THAT THEY IMPOSE IN AREAS SUCH AS THIS OUR READING IS THAT GOVERNMENT HAS SHOWN ITSELF INCAPABLE OF INVOLVING ITSELF WITH SOMETHING LIKE CHILD CARE IN A WAY THAT IS SIMPLE OR EFFICIENT AND WE'D SAY THE BURDEN IS ON LIBERALS TO PROVE OTHERWISE IN THE MEANTIME MOTHERS AND FATHERS OF ANY POLITICAL PERSUASION MIGHT CONSIDER TAKING A CLOSER LOOK AT WHOSE POLITICS IS BEST TRYING TO GET THEM TO THE BOTTOM LINE OF AFFORDABLE COMPETENT HELP 9301260015 930126 THE LOCALS NOW FEEL THE OLD BIRD IS TRULY SOMETHING TO CROW ABOUT BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA SAVE THE BIG CHICKEN WHILE IT MIGHT NOT HAVE THE SAME RING AS SAVE THE WHALES IT'S STILL THE RALLYING CRY FOR 8000 FANS OF GEORGIA'S VERSION OF CHICAGO'S JOHN HANCOCK TOWER OR NEW YORK'S EMPIRE STATE BUILDING WE'RE TALKING OF COURSE ABOUT MARIETTA'S OWN BIG CHICKEN PERCHED ATOP A KENTUCKY FRIED CHICKEN RESTAURANT ON HIGHWAY 41 THE 56FOOTTALL METAL ROOSTER HAS BEEN A LANDMARK IN THIS ATLANTA SUBURB SINCE 1963 RESIDENTS REGULARLY MENTION IT WHEN GIVING DIRECTIONS GO TO THE BIG CHICKEN AND TURN LEFT AND AIRPLANE PILOTS REPORTEDLY USE THE HARDTOMISS BIRD TO NAVIGATE BY I THOUGHT IT WAS TACKY FOR A LONG TIME UNTIL FOLKS BEGAN TO APPRECIATE IT MORE THAN I DID SAYS JOE MACK WILSON MAYOR OF MARIETTA THAT'S PART OF ITS FASCINATION IT LOOKS SO DIFFERENT ESPECIALLY WHEN THAT OLD BEAK USED TO GO UP AND DOWN BUT A NEW YEAR'S STORM KNOCKED SOME OF THE SHEETMETAL STUFFING OUT OF THE BIRD THEN ENGINEERS DISCOVERED THAT THREE DECADES OF PIGEON DROPPINGS HAD RUSTED BIG CHICKEN'S STEEL FRAME ESTIMATES TO REPAIR THE FIXTURE RANGED FROM 100000 TO 200000 SAYS A SPOKESMAN FOR KFC A PEPSICO INC UNIT BASED IN LOUISVILLE KY IT'S GOT TO BE TORN DOWN HE ADDS BUT KFC EXECUTIVES DECIDED NOT TO MAKE ANY HASTY DECISIONS AFTER THE COMPANY'S 800 TELEPHONE NUMBER WAS FLOODED WITH THOUSANDS OF PHONE CALLS FROM CITIZENS CONCERNED THAT THEIR FAVORITE BIRD WAS ABOUT TO BE PLUCKED FOR GOOD ANYTIME A CONSUMERPRODUCT COMPANY HEARS FROM 8000 CUSTOMERS YOU HAVE TO SIT UP AND TAKE NOTICE THE SPOKESMAN SAYS WHO WOULD'VE THOUGHT 8000 PEOPLE WOULD'VE STOPPED THEIR LIVES AND PICKED UP THE PHONE TO CALL THE VAST MAJORITY OF CALLERS WANT KFC TO SPRUCE UP THE BIRD AND KEEP IT ATOP ITS NEST IN MARIETTA BUT IF THAT'S NOT POSSIBLE RICHARD THORSEN SHOW MANAGER OF THE NORTH ATLANTA TRADE CENTER EXHIBITION HALL IN GWINNETT COUNTY HAS AN ALTERNATIVE MR THORSEN SAYS HE WOULD BE INTERESTED IN BUYING THE BIRD AND GIVING IT A NEW HOME ABOVE HIS 200000SQUAREFOOT FACILITY SO FAR HOWEVER HE SAYS HE HASN'T HEARD FROM KFC IT WOULD SAVE A LANDMARK AND HELP IDENTIFY OUR BUILDING HE SAYS KFC IS EXPECTED TO ANNOUNCE THE BIRD'S FATE TODAY ITS SPOKESMAN IS MUM ON WHAT THE OUTCOME WILL BE SAYING ONLY THAT HE HOPES TO HAVE GOOD NEWS 9301260014 930126 ENTERPRISE MORE DISABLED PEOPLE ARE BUILDING BUSINESSES AT HOME DESPITE GREATER WORKPLACE ACCESS MANY SEEK REWARDS IN SELFEMPLOYMENT BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL A GROWING NUMBER OF DISABLED PEOPLE ARE FINDING ALTERNATIVES TO THE WORKPLACE BY STARTING BUSINESSES IN THEIR HOMES WHILE THE AMERICANS WITH DISABILITIES ACT MAKES IT EASIER FOR THE DISABLED TO GET JOBS IN OFFICES AND FACTORIES MANY OF THEM ARE DISCOVERING THAT IT CAN BE MORE REWARDING TO WORK FOR THEMSELVES SPECIALISTS SAY LIKE TENS OF THOUSANDS OF OTHER ENTREPRENEURS ACROSS THE COUNTRY THEY ARE SETTING UP SHOP IN THEIR HOMES AND LINKING UP BY COMPUTER AND FAX TO THE OUTSIDE WORLD I SEE AN INCREASE IN THE NUMBER OF DISABLED PEOPLE STARTING BUSINESSES OUT OF THEIR HOME SAYS PAUL HEARNE DIRECTOR OF THE DOLE FOUNDATION A NONPROFIT ORGANIZATION IN WASHINGTON THAT PROMOTES EMPLOYMENT OF THE DISABLED AND WHILE STATISTICS ARE HARD TO COME BY HIS GROUP IS DOING WHAT IT CAN TO ENCOURAGE THE TREND A PROGRAM SPONSORED LAST YEAR BY THE DOLE FOUNDATION THE NATIONAL FOUNDATION FOR TEACHING ENTREPRENEURSHIP AND QUEENSBOROUGH COMMUNITY COLLEGE IN NEW YORK TRAINED DISABLED PEOPLE ON HOW TO START BUSINESSES IN THEIR HOMES OR IMPROVE ONES THEY HAD ALREADY LAUNCHED THE GOAL WAS TO EMPOWER THESE PEOPLE WITH THE INFORMATION AND MOTIVATION TO BECOME ACTIVE WITHIN OUR ECONOMIC SYSTEM SAYS JACK MARIOTTI THE PROGRAM'S DIRECTOR OF THE 20 PARTICIPANTS IN THE ONEMONTH COURSE EIGHT ARE CURRENTLY RUNNING VENTURES THAT GENERATE REVENUE BARBARA BARRETT WHO HAS MULTIPLE SCLEROSIS IS ONE OF THEM SHE FOUNDED BARRETT UNLIMITED IN HER NEW YORK HOME TWO YEARS AGO TO TRANSCRIBE LEGAL AND MEDICAL RECORDS THE BUSINESS CURRENTLY HAS REVENUE OF ABOUT 2500 A MONTH MS BARRETT SAYS SHE HAD BEEN TRANSCRIBING DOCUMENTS FOR YEARS AS A HOME WORKER FOR COMPANIES THAT PROVIDE SUCH SERVICES WHEN SHE DECIDED SHE COULD MAKE MORE MONEY AND GAIN GREATER INDEPENDENCE IF SHE STRUCK OUT ON HER OWN THIS WILL BE AN IMPORTANT PART OF THE FUTURE FOR DISABLED WORKERS MS BARRETT SAYS THE DISABLED ARE ALSO MAKING A MARK IN OTHER FIELDS THE DISABILITIES ACT HAS OPENED UP A RICH NEW TERRAIN FOR CONSULTANTS FOR EXAMPLE AND GREGORY FRANZEN PARALYZED BELOW THE NECK AND DEPENDENT ON A RESPIRATOR STARTED JIREH MEDICAL SUPPLY CO IN HIS ST LOUIS HOME ABOUT NINE MONTHS AGO JIREH IS A MAILORDER BUSINESS THAT SUPPLIES MEDICAL EQUIPMENT TO THE DISABLED THE COST OF DOING IT IN MY HOME IS LOWER AND IT'S MORE CONVENIENT FOR ME TO WORK HERE SAYS MR FRANZEN AND I'M TRYING TO MEET A VOID IN THE MARKET FOR DISABLED PEOPLE WHO ARE OVERCHARGED AND UNDERSERVED BY MEDICAL EQUIPMENT SUPPLIERS SOME EXPERTS ARE LUKEWARM TO THE IDEA OF LAUNCHING HOME BUSINESSES ON THE GROUNDS THAT THE DISABLED ARE BETTER OFF GETTING OUT INTO THE WORLD ON THE ONE HAND IT'S VERY LIBERATING FOR SOMEONE WHO HAS TO TAKE SUBWAYS AND DEAL WITH THE LACK OF RAMPS TO WORK OUT OF THEIR HOME SAYS MARY JOHNSON EDITOR OF DISABILITY RAG A MAGAZINE THAT COVERS THE DISABILITIESRIGHTS MOVEMENT ON THE OTHER HAND DISABLED PEOPLE DON'T GET TO MIX WITH THEIR COLLEAGUES AND HAVE ANOTHER ARENA IN WHICH TO LIVE THEIR LIVES IF THEY ONLY WORK OUT OF THE HOME BUT SOME DISABILITIES ARE SO CONFINING THAT THOSE WHO LIVE WITH THEM HAVE NO CHOICE BUT TO WORK IN THEIR HOMES DIANE SAARINEN HAS AN INNEREAR DISORDER THAT CAUSES CONSTANT DIZZINESS THE AFFLICTION IS AGGRAVATED BY TRAVELING SO DAILY COMMUTING TO A JOB ISN'T POSSIBLE FOR HER SO MS SAARINEN STARTED PROVIDING TAROTCARD READINGS LAST YEAR OVER THE TELEPHONE FROM HER MANHATTAN HOME MS SAARINEN SAYS THE BUSINESS UTTERLY DIVINE HAS REVENUE OF ABOUT 700 TO 800 MONTHLY SHE SAYS SHE EXPECTS FURTHER GROWTH BECAUSE SHE HAS HAD MANY REPEAT CUSTOMERS AND EVEN IF SHE HAD THE OPTION OF COMMUTING TO WORK MS SAARINEN SAYS SHE WOULD STAY IN HER HOME I'M VERY HAPPY NOT WORKING FOR SOMEONE ELSE SHE SAYS THERE'S MORE FREEDOM OTHER ADVOCATES FOR THE DISABLED LIKE THE IDEA OF HOMEBASED BUSINESSES THE NATIONAL CENTER FOR DISABILITY SERVICES IN ALBERTSON NY HAS PROVIDED COMPUTER TRAINING FOR SEVERAL PEOPLE WHO HAVE STARTED BUSINESSES OUT OF THEIR HOMES ALTHOUGH THE CENTER DOESN'T HAVE A FORMAL PROGRAM FOR TRAINING THE DISABLED IN HOMEBASED STARTUPS IT SAYS IT IS PLEASED WITH ITS FORAYS INTO THE AREA AND WANTS TO PUT MORE RESOURCES BEHIND SUCH EFFORTS SOMETIMES SUCCESS NUDGES ENTREPRENEURS WITH DISABILITIES OUT OF THEIR HOMES AND INTO THE OPEN MARKETPLACE THREE YEARS AGO ZULLY ALVARADO WHO WALKS WITH A LIMP BROUGHT ON BY POLIO AND SUFFERS FROM CONTINUING MUSCLE DETERIORATION STARTED MAKING SHOES FOR THOSE WITH MISSHAPEN OR ODDSIZED FEET AND SOLD THEM FROM HER CHICAGO HOME EIGHT MONTHS LATER DEMAND FOR HER SHOES WAS SO GREAT THAT SHE OPENED A STORE LOCALLY HER STORE WHICH IS CALLED ZULLY HAS ANNUAL REVENUE OF 55000 SHE SAYS MS ALVARADO SAYS STARTING IN HER HOME ALLOWED HER TO SET HER OWN HOURS UNTIL THE BUSINESS GREW LARGER AN IMPORTANT CONSIDERATION GIVEN THE MANY INSTANCES WHERE PAIN LEFT HER UNABLE TO WORK OTHER WOULDBE ENTREPRENEURS SAY THEY ARE HESITANT TO START A BUSINESS FOR FEAR OF LOSING THEIR FEDERAL DISABILITY PAYMENTS WHICH FALL FROM A MAXIMUM OF 434 A MONTH TO THOSE WITH NO OUTSIDE INCOME TO ZERO FOR THOSE WHO MAKE 933 A MONTH OR MORE DEBORAH STEVENSON WHO HAS A SEIZURE DISORDER AND SEVERE ARTHRITIS IS ONE EXAMPLE SHE COMPLETED THE COURSE AT QUEENSBOROUGH AND WANTS TO START A BUSINESS IN HER BROOKLYN HOME MAKING BATHROOM AND KITCHEN ACCESSORIES BUT MS STEVENSON SAYS SHE HASN'T APPLIED FOR A TAXIDENTIFICATION CODE AND OTHER THINGS SHE NEEDS TO GET HER BUSINESS STARTED BECAUSE SHE BELIEVES HER AID WILL BE CUT OFF ONCE THE GOVERNMENT DISCOVERS HER EFFORTS AS SOON AS YOU TRY TO MAKE SOMETHING OF YOUR LIFE INSTEAD OF BEING REWARDED YOU'RE PUNISHED SHE SAYS BUT MS STEVENSON'S WORRIES MAY BE UNFOUNDED THE SOCIAL SECURITY ADMINISTRATION SAYS IT CAN STRUCTURE PAYMENTS FOR DISABLED ENTREPRENEURS SO THAT SOME OF THEIR BENEFITS AREN'T ELIMINATED UNTIL THEIR BUSINESSES ARE SELFSUSTAINING 9301260013 930126 CORPORATE FOCUS ORION STRUGGLES TO RETURN TO ITS HOLLYWOOD GLORY DAYS OUT OF BANKRUPTCY COURT COMPANY STILL NEEDS INVESTORS SUCCESSFUL FILMS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LIKE THE HALFMAN HALFROBOT CHARACTER IN ITS HIT MOVIE ROBOCOP ORION PICTURES CORP IS GETTING A CHANCE TO COME BACK FROM THE DEAD SINCE EMERGING FROM BANKRUPTCY COURT PROCEEDINGS TWO MONTHS AGO UNDER THE GUIDANCE OF ITS PRINCIPAL OWNER BILLIONAIRE JOHN W KLUGE ORION IS SHOWING THE FIRST SIGNS OF RESUSCITATION USING ALMOST 45 MILLION OF CASH GENERATED FROM ITS 750FILM LIBRARY ORION HAS PAID DOWN SOME OF ITS 400 MILLION IN DEBT AND THE COMPANY IS POISED TO RELEASE THE 10 NEW FILMS INCLUDING ROBOCOP 3 THAT WERE IN THE CAN BEFORE THE COMPANY WENT BUST MR KLUGE HAS MUCH AT STAKE IN ORION'S RETURN SINCE 1987 HE HAS SUNK ABOUT 300 MILLION INTO THE COMPANY EVEN BY BILLIONAIRE STANDARDS THAT IS NO MEAN SUM AND HE HAS PERSONALLY GUARANTEED ANOTHER 300 MILLION OF THE COMPANY'S DEBT NOW ALONG WITH PARTNER STUART SUBOTNICK MR KLUGE AIMS TO RESTORE ORION TO ITS ONETIME STATUS AS ONE OF HOLLYWOOD'S MAJOR ALBEIT SMALLER STUDIOS ORION HAS ALREADY BEGUN TO CRANK UP ITS DISTRIBUTION BUSINESS PLANNING TO RELEASE BOTH ITS ALREADY PRODUCED MOVIES AND A NUMBER OF VIDEOCASSETTES FORMER ORION MANAGEMENT BUILT A TERRIFIC LIBRARY SAYS JOHN LOGIGIAN ORION'S FORMER VICE PRESIDENT OF BUSINESS AFFAIRS THERE IS GREAT DEMAND FOR MOVIES THROUGHOUT THE WORLD ORION WILL BE A VERY EFFECTIVE DISTRIBUTOR OF FILMS BUT INDUSTRY EXECUTIVES CAUTION THAT ORION CAN ONLY SCORE BIG BY DOING WHAT TINSELTOWN IS ALL ABOUTPRODUCING SUCCESSFUL FILMS MESSRS KLUGE AND SUBOTNICK ARE CURRENTLY SEEKING INVESTORS TO HELP PROVIDE PART OF THE APPROXIMATELY 200 MILLION ANNUALLY THAT IT TAKES TO PRODUCE AND RELEASE A FULL SLATE OF MOVIES SKEPTICS DOUBT THE FAILED FILM COMPANY CAN ATTRACT NEW INVESTORS BUT IN AN INTERVIEW MR SUBOTNICK SAYS HE AND MR KLUGE ARE OPTIMISTIC AND HAVE ALREADY HAD EXPRESSIONS OF INTEREST FROM POTENTIAL INVESTORS TO THE SKEPTICS HE ANSWERS WITH THIS BOAST JOHN AND I HAVE BEEN ABLE TO CLIMB MANY MOUNTAINS IN CONTRAST TO THE MAJOR STUDIOS WHICH CAN CRANK OUT AS MANY AS 30 FILMS A YEAR ORION'S MOVIE MOGULS HAVE MORE MODEST AMBITIONS OUR PLAN IS TO WALK BEFORE WE RUN SAYS MR SUBOTNICK WE'D LIKE TO DO 12 TO 15 FILMS A YEAR WE'RE TALKING ABOUT STARTING WITH SIX ORIGINAL PRODUCTIONS AND BUYING THE REST FROM INDEPENDENT FILMMAKERS MR SUBOTNICK SAYS PRODUCING THE SIX FILMS WOULD REQUIRE 120 MILLION TO 125 MILLION OF THE UP TO 200 MILLION THEY ARE SEEKING TO RAISE MR SUBOTNICK INSISTS THAT HE AND MR KLUGE WHO TOGETHER CONTROL METROMEDIA INC WON'T RUN THE BUSINESS THEMSELVES THEY'VE PUT COMPANY MANAGEMENT FOR NOW IN THE HANDS OF LEONARD WHITE A VETERAN ORION EXECUTIVE WHOSE EXPERTISE IS IN THE VIDEO BUSINESS HOLLYWOOD ISN'T WHERE WE WANT TO SPEND OUR TIME WE HAVE OTHER COMPANIES THAT TAKE UP A LOT MORE TIME HE SAYS ORION IS IMPORTANT BECAUSE WE WANT TO MAKE SURE CREDITORS ARE TAKEN CARE OF MR KLUGE INITIALLY GOT INTO ORION TO HELP A FRIEND ORION WAS IN THE EARLY STAGES OF ITS ULTIMATE COLLAPSE WHEN ONE OF ITS FOUNDERS ARTHUR KRIM CALLED ON LONGTIME PAL MR KLUGE FOR HELP BUT DESPITE A NUMBER OF CASH INFUSIONS BY MR KLUGE WHO STAYED OUT OF MANAGEMENT ORION CONTINUED TO FALTER UNABLE TO PULL OUT OF A TAILSPIN DESPITE SUCH SUCCESSFUL FILMS AS SILENCE OF THE LAMBS AND DANCES WITH WOLVES BY THE TIME OF ITS 1991 BANKRUPTCYLAW FILING UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE MR KLUGE THROUGH METROMEDIA OWNED ABOUT 70 OF THE COMPANY WITH A CHUNK OF HIS WEALTH EVAPORATING AND HIS PRIDE ON THE LINE MR KLUGE DISPATCHED A TEAM OF AUDITORS TO GRAB ORION'S FINANCIAL REINS AND IN A PAINFUL MOVE HE ALSO NUDGED OUT MR KRIM AND THE REST OF ORION MANAGEMENT THOUGH ACCORDING TO MR SUBOTNICK THE TWO MEN REMAIN GOOD FRIENDS MR KLUGE WASN'T AVAILABLE FOR AN INTERVIEW MESSRS KLUGE AND SUBOTNICK STEERED THE COMPANY THROUGH CHAPTER 11 PROCEEDINGS IN JUST 11 MONTHS PERSUADING SOME DEBT HOLDERS TO CONVERT THEIR DEBT INTO A 49 EQUITY STAKE METROMEDIA MEANWHILE INVESTED AN ADDITIONAL 45 MILLION AND AGREED TO GUARANTEE 300 MILLION OWED TO BANKS AS A RESULT THE COMPANY ELIMINATED ABOUT 300 MILLION OF THE 700 MILLION OF DEBT UNDER WHICH IT HAD ENTERED BANKRUPTCY MR SUBOTNICK NOW BOASTS THAT ORION IS THE FIRST ENTERTAINMENT COMPANY TO EMERGE FROM SUCH PROCEEDINGS WITHOUT LIQUIDATING ITS PRINCIPAL ASSET THE FILM LIBRARY UNLIKE OTHER FILM COMPANIES THAT WENT THROUGH DEATH DANCES HE SAYS ORION REMAINED INTACT THE LIBRARY HAS ALREADY GENERATED AT LEAST 45 MILLION ACCORDING TO MR SUBOTNICK FOR EXAMPLE THE COMPANY LICENSED 200 FILMS TO AN AGENT FOR AIRING IN JAPAN AND ONLY DAYS AFTER ORION EMERGED FROM THE CHAPTER 11 PROCEEDINGS MR WHITE ORION'S CHIEF EXECUTIVE REACHED A DEAL TO SELL THREE ORION VIDEOS TO MCDONALD'S CORP INCLUDING DANCES WITH WOLVES MCDONALDS IN TURN SOLD THEM AT DEEP DISCOUNT THROUGH ITS FAST FOOD OUTLETS PUNDITS DUBBED THE PROMOTION DANCES WITH FRIES ORION VIDEOS ARE ALSO LIKELY TO SHOW UP ON THE MENU AT PONDEROSA RESTAURANTS WHICH ARE PART OF THE METROMEDIA EMPIRE MR SUBOTNICK SAID AND ORION ALSO PLANS TO ADVERTISE SOME OF THE 10 MOVIES PLANNED FOR RELEASE THIS YEAR AT METROMEDIA'S BENNIGAN'S RESTAURANT CHAIN DISTRIBUTION OF THOSE MOVIES IS CRITICAL TO CREATING A BROADER PERCEPTION THAT ORION IS BACK IN BUSINESS INDUSTRY EXECUTIVES SAY ONE OF THE MOVIES LOVE FIELD ALREADY HAD A ONEWEEK OPENING AT TWO THEATERS IN LOS ANGELES AND NEW YORK TO QUALIFY FOR POSSIBLE ACADEMY AWARDS NOMINATION STARRING MICHELLE PFEIFFER THE DRAMA IS ABOUT THE DAYS FOLLOWING THE ASSASSINATION OF PRESIDENT KENNEDY ALSO AMONG THE 10 MOVIES ARE THE DARK HALF A THRILLER STARRING TIMOTHY HUTTON BASED ON A NOVEL BY STEPHEN KING MARRIED TO IT WITH STOCKARD CHANNING AND BEAU BRIDGES AND A MOVIE BASED ON THE POPULAR 1960S TELEVISION SERIES CAR 54 WHERE ARE YOU ORION AT PRESENT HAS NO PLANS TO GET BACK INTO TELEVISION PRODUCTION A BUSINESS ON WHICH IT OVERSPENT DISASTROUSLY IN THE 1980S HOWEVER TELEVISION MAKES UP AT LEAST HALF THE BUSINESS OF MOST MAJOR STUDIOS AND TV EARNINGS OFTEN PROVIDE A HEDGE AGAINST DOWN YEARS IN FEATURE FILMS 9301260012 930126 TECHNOLOGY PACIFIC TELESIS TO SPEND 1 BILLION ON ITS CALIFORNIA PHONE NETWORK BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL PACIFIC TELESIS GROUP SAID IT WILL SPEND 1 BILLION OVER THE NEXT FIVE YEARS TO UPGRADE ITS TELEPHONE NETWORK IN CALIFORNIA BY 1997 PACIFIC TELESIS'S PACIFIC BELL UNIT WILL REPLACE ALL ITS REMAINING ANALOG SWITCHES THE COMPUTERS THAT ROUTE PHONE CALLS WITH DIGITAL TECHNOLOGY A STEP THAT WILL LET THE PHONE COMPANY OFFER ADVANCED COMMUNICATIONS SERVICES THROUGHOUT CALIFORNIA IN ADDITION TO NEW CUSTOM CALLING SERVICES SUCH AS CALL TRACE AND CALL RETURN THE NEW SWITCHES WILL ALSO LET THE PHONE COMPANY OFFER VIDEO CONFERENCING AND TELECOMMUTING SERVICES THROUGHOUT THE STATE PACIFIC TELESIS IS BASED IN SAN FRANCISCO PACIFIC BELL WILL SPEND ABOUT 330 MILLION MORE THAN IT NORMALLY WOULD FOR SWITCHES OVER THE FIVEYEAR PERIOD SAID STEVE WELCH PACIFIC BELL'S VICE PRESIDENT SHARED SERVICES THE EFFICIENCIES OF RUNNING AN ALLDIGITAL NETWORK HE SAID WILL SAVE THE COMPANY MONEY OVER A 10YEAR PERIOD THAT'S IN PART BECAUSE THE COMPANY WILL HAVE ONLY TWO TYPES OF SWITCHING SYSTEMS TO SERVICE AND MAINTAIN RATHER THAN THE SEVEN DIFFERENT SYSTEMS THAT CURRENTLY ROUTE CALLS THROUGH ITS NETWORK PACIFIC BELL'S NETWORK IS ONE OF THE MOST DATED IN THE COUNTRY BUT BY THE END OF 1997 IT WILL BE ONE OF THE MOST ADVANCED THE NEW DIGITAL SWITCHES WILL SERVE 91 MILLION TELEPHONE LINES INCLUDING THE PHONE COMPANY'S EIGHT MILLION ANALOG LINES IN SERVICE TODAY PACIFIC BELL CURRENTLY HAS 14 MILLION PHONE LINES IN SERVICE AMERICAN TELEPHONE & TELEGRAPH CO WILL SUPPLY 5ESS SWITCHING SYSTEMS SERVING 51 MILLION LINES AND NORTHERN TELECOM LTD WILL SUPPLY DMS 100 SWITCHING SYSTEMS SERVING FOUR MILLION LINES BY THE TIME THE PROJECT IS COMPLETE EACH MANUFACTURER'S SWITCHES WILL SERVE ABOUT HALF OF PACIFIC BELL'S NETWORK MR WELCH SAID THE COMPANY IS ALSO PLANNING INSTALL MORE FIBEROPTIC LINKS BETWEEN PHONECOMPANY FACILITIES AND CONTRACTS ARE EXPECTED TO BE AWARDED SOON TOGETHER THE NEW SWITCHES AND FIBEROPTIC LINES WOULD LET THE PHONE COMPANY INTRODUCE ADVANCED HIGHSPEED DIGITAL TRANSMISSION TECHNOLOGIES PACIFIC BELL SAID THE PROJECT COULD EVENTUALLY HELP CALIFORNIA'S AILING ECONOMY BY MAKING THE LATEST COMMUNICATIONS TECHNOLOGY UNIVERSALLY AVAILABLE AND INSTALLING A NETWORK COMPATIBLE WITH FUTURE DEVELOPMENTS UPGRADING THE NETWORK HAS IMPLICATIONS BEYOND CALIFORNIA'S ECONOMY ANALYSTS SAID THE REGIONAL BELL COMPANIES NEED TO IMPROVE THEIR CORE TELEPHONE BUSINESSES AS A NEW ERA OF COMPETITION NEARS LOCAL PHONE COMPANIES ALREADY FACE COMPETITION IN MAJOR CITIES FROM NEW FIBEROPTIC CARRIERS THAT TRANSMIT PHONE AND DATA TRAFFIC FOR LARGE CORPORATIONS AND LONGDISTANCE CARRIERS IN ADDITION CELLULARPHONE COMPANIES CABLE OPERATORS AND OTHERS ARE PLANNING POCKETPHONE SYSTEMS THAT MIGHT SUBSTITUTE FOR TRADITIONAL TELEPHONE SERVICE TO EXPAND THEIR MARKETS PHONE COMPANIES BELIEVE THEY EVENTUALLY WILL HAVE TO SPEND BILLIONS OF DOLLARS TO INSTALL FIBEROPTIC LINES AND OTHER TECHNOLOGIES THAT WILL ALLOW THEM TO CARRY FULLMOTION VIDEO SIGNALS THE ANNOUNCEMENT COMES A MONTH AFTER PACIFIC TELESIS DISCLOSED PLANS TO SPIN OFF ITS RAPIDLY GROWING CELLULAR AND INTERNATIONAL BUSINESSES FROM ITS SLOWGROWTH TELEPHONE OPERATIONS ANALYSTS VIEWED THE PROJECT AS A WAY TO REASSURE REGULATORS THAT THE PHONE BUSINESS WON'T BE NEGLECTED THE ANNOUNCEMENT IS A COMMENT TO STATE AND FEDERAL REGULATORS THAT DIVESTITURE DOESN'T IMPLY THAT INVESTMENT IN CALIFORNIA'S INFRASTRUCTURE WILL STOP SAID ROBERT B MORRIS III A TELECOMMUNICATIONS ANALYST WITH GOLDMAN SACHS & CO BOTH AT&T AND NORTHERN CLAIMED VICTORY WE CONSIDER IT A WIN SAID JACK HERRINGTON AT&T NETWORK SYSTEMS' REGIONAL VICE PRESIDENT IN SAN RAMON CALIF WHO NOTED THAT AT&T WILL SUPPLY SWITCHES SERVING 51 MILLION LINES OF THE 91 MILLION LINES COVERED UNDER THE NEW CONTRACTS IT DOUBLES OUR MARKET SHARE WITH PACBELL TO ABOUT HALF OF THEIR NETWORK SAID ROY MERRILLS PRESIDENT OF NORTHERN FOR AT&T THE CONTRACT IS FAR BETTER NEWS THAN IT HAD RECEIVED A YEAR AGO FROM CHICAGOBASED AMERITECH WHICH AWARDED AT&T ONLY A SMALL PART OF ITS 1 BILLION NETWORK MODERNIZATION PROJECT 9301260011 930126 MARKETING & MEDIA P&G MOVES TO ENTER HIGHEND MARKET WITH NEW FRAGRANCE VENEZIA IS FIRM'S FIRST PERFUME TO RIVAL PRESTIGE BRANDS WHERE MARGINS ARE HEADY BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PROCTER & GAMBLE CO MADE ITS AMERICAN DEBUT IN THE RARIFIED WORLD OF HIGHPRICED PERFUMES YESTERDAY WITH THE US ROLLOUT OF ITS FIRST HIGHEND FRAGRANCE LAURA BIAGIOTTI'S VENEZIA IN FLOWERY LANGUAGE TYPICAL OF THE PERFUME TRADE THE CONSUMER PRODUCTS COMPANY CALLED VENEZIA A SEDUCTION OF THE SENSES BUT THE REAL SEDUCTION IS FOR P&G IN THE FORM OF THE POTENTIALLY HIGH MARGINS WHICH ARE A CHARACTERISTIC OF THE PRESTIGE FRAGRANCE INDUSTRY ANALYSTS SAY THE QUESTION ANALYSTS ARE ASKING IS WHETHER P&G WHOSE LOWER PRICED NAVY AND INCOGNITO FRAGRANCES MADE BY COVER GIRL ARE CARRIED BY VIRTUALLY EVERY DRUG STORE CHAIN SUPERMARKET AND MASS MERCHANDISER HAS ENOUGH CLOUT WITH FINE DEPARTMENT STORES TO DISTRIBUTE THE NEW PRODUCT SUCCESSFULLY P&G SAYS IT HAS BROUGHT EXECUTIVES FROM BETRIX'S EUROCOS UNIT TO THE US SPECIFICALLY TO MANAGE THE AMERICAN ROLLOUT AND DISTRIBUTION VENEZIA WILL ONLY REACH AMERICAN DEPARTMENT STORES LATER THIS YEAR BUT WILL BE IMMEDIATELY AVAILABLE IN EUROPEAN DESIGNER LAURA BIAGIOTTI'S NEW NEW YORK CITY CLOTHING BOUTIQUE THE COMPANY SAYS VENEZIA WHICH IS ITALIAN FOR VENICE IS P&G'S FIRST INTRODUCTION OF A HIGHEND PERFUME SINCE ITS 1991 ACQUISITION OF REVLON INC'S BETRIX COSMETICS UNIT WHICH WAS ALREADY SELLING LAURA BIAGIOTTI'S ROMA AND HUGO BOSS FOR MEN IN DEPARTMENT STORES AND BOUTIQUES AROUND THE WORLD P&G CHAIRMAN EDWIN L ARTZT HAS MADE NO SECRET OF HIS AMBITION TO COMPETE WITH THE CHANELS BIJANS WHITE LINENS AND GIORGIOS IN INTRODUCING VENEZIA TO DEPARTMENT AND SPECIALTY STORE EXECUTIVES IN NEW YORK MR ARTZT EXPRESSED HIS DESIRE TO PURSUE A PRESTIGE BUSINESS STRATEGY EN ROUTE TO BECOMING THE WORLD LEADER IN COSMETICS AND FRAGRANCES ROMA AND HUGO BOSS HAVE A PRESENCE IN SOME AMERICAN DEPARTMENT STORES BUT SOME ANALYSTS QUESTION WHETHER THAT'S ENOUGH OF A MARKETING BASE TO MAKE LAURA BIAGIOTTI'S VENEZIA A SUCCESS THE MARGINS ARE ENORMOUS IF YOU CAN MAKE AND MARKET PRESTIGE FRAGRANCES SUCCESSFULLY SAYS BONITA AUSTIN AN ANALYST WITH SHEARSON LEHMAN BUT IT'S DIFFICULT TO GET THE DISTRIBUTION AND IT'S VERY EXPENSIVE MS AUSTIN ADDS HOWEVER THAT VENEZIA IS NOT A HIGHRISK VENTURE FOR P&G THE COMPETITION SHE NOTES IS MORE FRAGMENTED THAN IN THE MASS MARKET 9301260010 930126 WORLD MARKETS PRICES FALL BROADLY IN TOKYO SINK IN FRANKFURT AND EASE IN LONDON AS INVESTORS RETHINK RATES A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO SOFTENED MONDAY THOUGH THE DECLINES WERE BROAD LONDON'S THREESESSION RALLY ENDED AS INVESTORS REASSESSED THEIR INTERESTRATE OPTIMISM AND EQUITIES EASED FRANKFURT SHARES SANK 12 PRESSURED BY PROFITTAKING A WEAKER DOLLAR AND GLOOMY CORPORATE NEWS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 20187 POINTS FRIDAY SLIPPED 4936 TO 1628745 ON TUESDAY THE NIKKEI INDEX ROSE 18160 POINTS TO CLOSE THE MORNING SESSION AT 1646905 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES DOWN FROM 1902 MILLION SHARES ON FRIDAY AS INDIVIDUALS AND INSTITUTIONS CONTINUED THEIR MONTHSLONG HUGGING OF THE SIDELINES LOSERS TROUNCED GAINERS 617305 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 796 POINTS FRIDAY DECLINED 664 TO 125006 IN MONDAY'S TECHNICALLY DOMINATED ACTIVITY ARBITRAGE WAS LIGHTER THAN USUAL AS TRADERS IN THE FUTURES MARKET REACTED CAUTIOUSLY TO UNCONFIRMED REPORTS THAT THE BANK OF JAPAN WOULD REDUCE ITS OFFICIAL DISCOUNT RATE BEFORE THE END OF FEBRUARY THE REPORTS GAVE SOME SUPPORT TO MARKET SENTIMENT BUT AS A RATE CUT ALONE WOULDN'T RESCUE JAPAN'S ECONOMY AND AS STOCK PRICES HAVE ALREADY FACTORED IN A CREDIT EASING THE PROSPECT DIDN'T PUSH THE MARKET SHARPLY ONE WAY OR THE OTHER TOKYO INVESTORS DERIDED COMMENTS BY JAPANESE GOVERNMENT OFFICIALS THAT GENERALLY PROMISED ECONOMIC RECOVERY WITHOUT MUCH NEW POLICY LATE IN THE DAY PRIME MINISTER KIICHI MIYAZAWA SAID THE GOVERNMENT'S CURRENT MEASURES WOULD HAVE A CONSIDERABLE EFFECT ON THE ECONOMY IN THE FIRST HALF OF THE YEAR THAT STARTS APRIL 1 THE NIKKEI INDEX EDGED LOWER ALL DAY EXCEPT FOR A SHORTLIVED CLIMB IN THE LATE AFTERNOON ON COMPUTERDRIVEN PROGRAM BUYING OF INDEX ISSUES THE BASKETS RATCHETED SHARE PRICES HIGHER IN THIN VOLUME BUT SELLING PRESSURE FROM TOKKIN SPECIFIED MONEY TRUSTS PUSHED SHARE PRICES BACK DOWN AGAIN IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 93 POINTS TO 27719 THE FT 30STOCK INDEX DROPPED 72 POINTS TO 21450 VOLUME WAS A QUIET 4903 MILLION SHARES COMPARED WITH 6972 MILLION SHARES IN THE PREVIOUS SESSION LONDON PRICES ALSO WERE DRAGGED DOWN BY A COMBINATION OF PROFITTAKING AND AN EASING OF TECHNICAL PRESSURE IN THE FUTURES MARKET AMID AN ABSENCE OF MAJOR CORPORATE NEWS THOUGH WALL STREET'S EARLY GAINS PROVIDED A CUSHION AGAINST FURTHER DROPS LAST WEEK'S SPECULATION ABOUT IMPENDING BRITISH LENDINGRATE CUTS LED TO GAINS THAT MANY INVESTORS CONSIDERED AN OVERREACTION INDEED SOME DON'T EXPECT A REDUCTION FOR SIX WEEKS WHEN BRITAIN WILL MAKE ITS BUDGET ANNOUNCEMENT SPECULATION ABOUT CREDIT POLICY TOOK A FRONT SEAT WHEN A BRITISH EMPLOYER GROUP'S SURVEY FOUND THE BIGGEST JUMP IN CONFIDENCE IN FIVE YEARS WITH INFLATION REMAINING SUBDUED THE REPORT WHICH FOLLOWED A BATCH OF BEARISH ECONOMIC DATA LAST WEEK DOUSED SOME HOPES THAT BRITAIN WOULD NEED TO CUT RATES SOON TO AVERT A RELAPSE INTO RECESSION FURTHERMORE THE NOMINATION OF EDDIE GEORGE TO BE BANK OF ENGLAND GOVERNOR WAS PERCEIVED AS DENTING RATECUT HOPES MR GEORGE IS VIEWED AS A MONETARIST AND INFLATIONFIGHTER IN FRANKFURT THE DAX 30STOCK INDEX SLUMPED 1840 POINTS TO 156924 AFTER LAST WEEK'S GAINS THE PROFITTAKING WASN'T UNEXPECTED CHEMICAL AND AUTO STOCKS WERE POUNDED BY DISAPPOINTING NEWS SUCH AS PLANS TO ISSUE NEW STOCK AND EXPECTATIONS FOR LOWER SALES A SHADOW WAS CAST FURTHER AS THE DOLLAR'S DROP WAS CONSIDERED DETRIMENTAL TO GERMANY'S MANY EXPORTORIENTED COMPANIES BULLISH MONEYSUPPLY DATA WHICH RAISED HOPES FOR AN INTERESTRATE CUT AND PROVIDED A BRIGHT SPOT FOR DAX STOCKS WAS SOON UNDERMINED BY A REPORT OF HIGHERTHANEXPECTED GERMAN STATE INFLATION WHICH BROUGHT AN END TO THE GAINS ELSEWHERE IN EUROPE PARIS SHARE PRICES RETREATED BROADLY AMID A GROWING PERCEPTION THAT FRENCH AND EUROPEAN INTEREST RATES ARE UNLIKELY TO COME DOWN IN THE NEAR FUTURE THE DOLLAR'S WEAKNESS AND DECLINES ON OTHER EUROPEAN BOURSES ALSO UNDERMINED PARIS INVESTORS' SENTIMENT AMSTERDAM STOCKS ALSO FELL BROADLY ON THE DOLLAR'S TUMBLE AND ON LONDON STOCKS' DROP MILAN EQUITIES PLUMMETED WITH LOSSES IN MOST SECTORS SPURRED BY POOR CORPORATE NEWS IN THE CHEMICAL AND BANKING SECTORS MADRID PRICES FELL SHARPLY ON PROFITTAKING FOLLOWING LAST WEEK'S RALLY STOCKHOLM SHARES ALSO SANK ACROSS THE BOARD YANKED DOWN BY WEAKNESS IN THE PHARMACEUTICAL SECTOR ZURICH PRICES DECLINED IN LACKLUSTER TRADING AS BUYERS WERE FEW AMID A SENSE THAT THE MARKET MAY BE HEADING FOR A CORRECTION ON THE BIG ASIAN AND PACIFIC EXCHANGES MANY OF WHICH WERE CLOSED FOR THE CHINESE NEW YEAR HOLIDAY MANILA SHARES EASED ON LIGHT PROFITTAKING SEOUL STOCKS ENDED HIGHER BUT OFF THE DAY'S PEAKS AFTER A RALLY WAS CUT SHORT BY LATE SELLING PRESSURE AND WELLINGTON SHARES GAINED IN EXTREMELY THIN TRADING AMONG CORPORATE DEVELOPMENTS IN AMSTERDAM ACTIVITY IN DAF WHICH LAST TRADED AT 720 GUILDERS 402 WAS SUSPENDED PENDING AN ANNOUNCEMENT BY THE FINANCIALLY AILING ANGLODUTCH TRUCK MAKER DUTCH NEWS REPORTS SAID DAF WOULD GET A DUTCH GOVERNMENT INJECTION OF SEVERAL HUNDRED MILLION GUILDERS IN EMERGENCY FINANCING THROUGH PURCHASES OF NEW DAF SHARES DAF DECLINED TO COMMENT BUT SCHEDULED A NEWS CONFERENCE FOR TODAY TO DISCUSS ITS RESTRUCTURING PROGRAM 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 9301260009 930126 DUNDEE BANCORP TO CUT STAKE TORONTO DUNDEE BANCORP INC SAID IT PLANS TO REDUCE ITS STAKE IN BREAKWATER RESOURCES LTD TO 217 FROM 353 AS PART OF A PROPOSAL TO CONSOLIDATE ITS DIRECTLY AND INDIRECTLY CONTROLLED SUBSIDIARIES THE TORONTO HOLDING COMPANY SAID THE BLOCK OF 131 MILLION BREAKWATER SHARES WILL BE DISTRIBUTED TO MINORITY SHAREHOLDERS OF DUNDEE'S INDIRECTLY CONTROLLED SUBSIDIARY DCC EQUITIES LTD AT LAST REPORT BREAKWATER A ZINC MINING CONCERN BASED IN VANCOUVER BRITISH COLUMBIA HAD 1271 MILLION SHARES OUTSTANDING A GROUP LED BY H ROY SHIPES WHO HEADS COPPER PRODUCER ARIMETCO INTERNATIONAL INC HOLDS 32 OF BREAKWATER 9301260008 930126 MCDONALD & CO INVESTMENTS CLEVELAND MCDONALD & CO INVESTMENTS INC SAID ITS MCDONALD & CO SECURITIES INC UNIT ISSUED 25 MILLION OF 824 SUBORDINATED NOTES DUE JAN 15 2002 IN A PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS THE COMPANY SAID PROCEEDS WILL BE USED TO REDUCE SHORTTERM DEBT IN ADDITION MCDONALD SAID IT RECEIVED APPROVAL FROM THE NEW YORK STOCK EXCHANGE TO CLASSIFY THE NOTES AS A PART OF REGULATORY CAPITAL OF THE UNIT MCDONALD & CO INVESTMENTS OPERATES BUSINESSES IN INVESTMENT BANKING BROKERAGE SERVICES AND INVESTMENT ADVISORY SERVICES 9301260007 930126 JUDGE REMOVES ROOF FROM MERRILL LYNCH TAX SHELTER BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO LOST ITS FIGHT TO KEEP THE RECORDS OF SOME MAJOR CORPORATE CLIENTS OUT OF THE HANDS OF THE TAX MAN A FEDERAL JUDGE ORDERED THE NATION'S LARGEST BROKERAGE FIRM TO TURN OVER THE FILES OF CLIENTS THAT PARTICIPATED IN A CONTROVERSIAL TAX SHELTER MERRILL BEGAN PROMOTING IN THE LATE 1980S THAT SHIELDED THE CLIENTS FROM HUNDREDS OF MILLIONS OF DOLLARS IN POTENTIAL TAX LIABILITIES THE CASE HIGHLIGHTS HOW EASILY THE USUALLY CONFIDENTIAL RELATIONSHIP BETWEEN BROKERAGE FIRMS AND CLIENTS WHETHER THEY ARE INDIVIDUALS OR INSTITUTIONS CAN BE BREACHED BY THE INTERNAL REVENUE SERVICE US DISTRICT COURT JUDGE CHARLES S HAIGHT JR RULED THAT IT DOESN'T MATTER WHETHER MERRILL WAS THE PRIMARY TARGET OF THE IRS INVESTIGATORS OR WHETHER ITS CLIENTS WERE AS LONG AS A BROKERAGE FIRM IS SUBJECT TO A LEGITIMATE INVESTIGATION IT HAS TO TURN OVER ALL RECORDS REQUESTED BY THE IRS AND CANNOT SHIELD CLIENT NAMES THE JUDGE SAID THE IRS IS GENERALLY IN THE DRIVER'S SEAT WHEN IT WANTS INFORMATION SAID GERALD FEFFER A TAX LAWYER AT WILLIAMS & CONNOLLY IN WASHINGTON DC BUT MR FEFFER ADDED MERRILL'S CLIENTS ARE PROBABLY PETRIFIED RIGHT NOW MERRILL VIGOROUSLY FOUGHT THE IRS ARGUING THAT THE TAX AGENCY WAS USING THE GUISE OF AN INVESTIGATION OF MERRILL TO GET INFORMATION ABOUT ITS CLIENTS MERRILL ALSO ARGUED THAT THE IRS HAD OTHER WAYS TO GET THE INFORMATION WITHOUT REQUIRING THE FIRM TO INFORM ON ITS CLIENTS BUT JUDGE HAIGHT AGREED WITH THE IRS THAT THE INVESTIGATION OF MERRILL WAS LEGITIMATE AND THEREFORE THAT MERRILL HAD TO TURN OVER THE RECORDS JUDGE HAIGHT'S RULING MAKES LITTLE NEW LAW INSTEAD HE APPLIED A 1985 OPINION BY THE US SUPREME COURT THAT UPHELD THE TAX AGENCY'S RIGHT TO GET CLIENT RECORDS AS LONG AS IT WAS ALSO INVESTIGATING THE INSTITUTION HOLDING THE RECORDS MERRILL ALSO ARGUED THAT ALL THE COMPANIES THAT PARTICIPATED ARE SO LARGE THAT THEY'RE ALREADY UNDER CONTINUOUS REVIEW BY IRS AUDITORS THEREFORE MERRILL CLAIMED THERE WAS NO NEED TO GET THE RECORDS HELD BY THE BROKERAGE FIRM JUDGE HAIGHT REJECTED THIS ARGUMENT AS WELL A MERRILL SPOKESMAN SAID THE FIRM HAD NOT YET REVIEWED THE RULING AND HAD NO COMMENT THE LEGAL FIGHT BETWEEN MERRILL AND THE IRS INVOLVES A TAX STRATEGY PROMOTED BY MERRILL IN WHICH PARTNERSHIPS WERE CREATED THAT GENERATED LOSSES THAT A CORPORATION COULD USE TO OFFSET GAINS FROM THE SALES OF MAJOR HOLDINGS THE PARTNERSHIPS SHARED PROFITS AND LOSSES FROM THE ACQUISITION AND LATER THE SALE OF THE PARTNERSHIP'S ASSETS TYPICALLY FIXEDINCOME SECURITIES BECAUSE THE ASSETS WOULD BE SOLD IN INSTALLMENTS OVER A PERIOD OF TIME THE PARTNERSHIP HAD FLEXIBILITY IN ASSIGNING LOSSES AND PROFITS ACCORDING TO THE TAX NEEDS OF THE VARIOUS PARTNERS FOR EXAMPLE ONE PARTNER MIGHT DROP OUT AFTER RECEIVING THE BULK OF THE PROFITS LEAVING THE LOSSES FOR ANOTHER PARTNER SEEKING TO WRITE DOWN TAXABLE GAINS ON THE SALE OF A BUSINESS UNIT AMONG THE MATERIALS DEMANDED BY THE IRS FROM MERRILL ARE CORRESPONDENCE WITH THE PARTNERS RECORDS OF CASH AND NONCASH FEES EARNED BY MERRILL AND INFORMATION RELATING TO THE WITHDRAWAL OF PARTNERS FROM THE PARTNERSHIPS THE IRS IS ALSO SEEKING PROMOTIONAL MATERIALS PREPARED BY MERRILL TO EXPLAIN THE TAX CONSEQUENCES OF THE ARRANGEMENT TO ITS CLIENTS IT ISN'T KNOWN HOW MANY CORPORATIONS PARTICIPATED IN THE MERRILL PARTNERSHIPS BUT PARAMOUNT COMMUNICATIONS INC AND SCHERINGPLOUGH CORP WERE REPORTED TO HAVE ENGAGED IN THE TAX STRATEGY PARAMOUNT AND SCHERINGPLOUGH DECLINED TO COMMENT ON THE MATTER 9301260006 930126 BUSINESS WORLD DEFENSE INDUSTRY TITAN ON CONFLICTS AND CONSOLIDATION BY TIM W FERGUSON ANOTHER CABINET CHOICE HAS BEEN LOST IN THE ETHICAL QUICKSAND ALTHOUGH THE CIRCUMSTANCES THIS TIME WERE PERSONAL OTHERS WHO HAVE SHUTTLED BETWEEN CORPORATE AND GOVERNMENT POSTS HAVE BEEN UNDONE BY SCRUTINY OF THEIR BUSINESS CONDUCT MARTIN MARIETTA'S CHAIRMAN AND CEO NORMAN AUGUSTINE HAS BEEN ON BOTH SIDES OF THE TREACHEROUS LINE HE SERVED AS UNDERSECRETARY OF THE ARMY AND ELSEWHERE IN THE DEFENSE DEPARTMENT PRIOR TO JOINING THE GIANT MILITARY CONTRACTOR IN THE LATE 1970S I HAD THE PRIVILEGE TWICE OF BEING A PUBLIC SERVANT AND TODAY I DON'T THINK THAT I CAN HE SAYS ADDING HE KNOWS OF EXECUTIVES BY THE DOZENS WHO HAVE BEEN APPROACHED ABOUT FEDERAL JOBS AND TURNED THEM DOWN A FREQUENT SNAG IS ETHICS RULES BLOCKING A RETURN TO ONE'S SPECIALTY AFTER TIME IN A RELATED PUBLIC POST THERE'S NOT JUST ONE LAW THERE'S A WHOLE BODY OF REGULATIONS THAT DEFINE CONFLICT OF INTEREST SAYS MR AUGUSTINE ONE OF THE THINGS WE SHOULD DO IS BRING THOSE TOGETHER INTO ONE CODE HE COMPLAINS OF A VOLATILE COMBINATION THE LAWS ARE VERY VAGUE AND THEY HAVE VERY HARSH PENALTIES FOR A VIOLATION MR AUGUSTINE SAYS THAT OF ALL THE SCANDALIZING OF RECENT YEARS THE PROSECUTION OF FORMER GENERAL DYNAMICS OFFICIAL JAMES BEGGS COMES UP MOST IN HIS CIRCLE THAT CASE WAS ULTIMATELY DROPPED BUT MR BEGGS WAS FORCED TO QUIT AS NASA ADMINISTRATOR IN 1985 ETHICS RESTRICTIONS WERE TIGHTENED IN THE BELIEF THAT SIMPLY PROHIBITING PARTICULAR ACTS BY THOSE WHO WOULD TRADE ON THEIR GOVERNMENT EXPERIENCE WAS INEFFECTIVE AGAINST ABUSE OF THE REVOLVING DOOR BETWEEN THE PUBLIC AND PRIVATE SECTORS NOW THE LAW ATTEMPTS TO PRECLUDE SITUATIONS LEADING TO TEMPTATION BUT MR AUGUSTINE PREFERS THE OLD WAY HE SAYS HE IS NOT AT ALL SURPRISED THAT FEW BUSINESS PEOPLE HAVE FOUND THEIR WAY INTO THE CLINTON ADMINISTRATION WHICH BOASTS OF HAVING HIGHER STANDARDS YET I THINK THE LAWS WERE DESIGNED TO KEEP PEOPLE LIKE OURSELVES OUT THEY'RE VERY EFFECTIVE AND IF YOU HAPPEN TO BE IN THE NATIONAL SECURITY AREA AS I AM THERE'S ONLY ONE CUSTOMER AND THAT'S THE GOVERNMENT IF YOU CAN'T DO BUSINESS WITH THE GOVERNMENT THERE'S NOBODY LEFT CLEAN HANDS WERE EXPECTED EVEN BEFORE THE CLINTON CODES APPLIED DONALD ATWOOD DEPUTY DEFENSE SECRETARY FOR GEORGE BUSH HAD TO BUY INSURANCE FOR HIS GENERAL MOTORS PENSION LEST HIS ACTIONS IN OFFICE APPEAR DESIGNED TO KEEP THE PARENT OF HUGHES AIRCRAFT AFLOAT ALTHOUGH A MARTIN MARIETTA DIRECTOR JAMES WOOLSEY IS TO BE MR CLINTON'S NEW CIA CHIEF MR AUGUSTINE SAYS HE'D GENERALLY ADVISE COLLEAGUES TO BE WARY OF PUBLIC SERVICE NOW TOO OFTEN THEY'D EITHER HAVE TO REMOVE THEMSELVES FROM A DECISION OR BE SECONDGUESSED AND THUS INEFFECTUAL WHEN MAKING ONE HE SAYS MOST OF THE TOP CLINTON POSTS HAVE BEEN FILLED BY LAWYERS SUCH AS MR WOOLSEY THIS ISN'T ENTIRELY ETHICSRELATED MR AUGUSTINE SAYS FOR AN ATTORNEY SERVING IN A HIGH GOVERNMENT POSITION MAY BE OF SOME VALUE TO YOU IN YOUR SUBSEQUENT CAREER IF YOU'RE AN ENGINEER OR A SCIENTIST IT'S OF ALMOST NO VALUE IN FACT IT COULD BE A DETRIMENT IF YOU LOSE TRACK OF TECHNOLOGY FOR A FEW YEARS GIVEN THE PACE OF IT ON THE BASIC PROBLEM OF POLICING MISCONDUCT IN HIGH PLACES HOWEVER HE IS PHILOSOPHICAL THERE ARE SOME SCOUNDRELS IN THIS WORLD AND ALL THE LAWS IN THE WORLD AREN'T GOING TO PREVENT THEM FROM DOING THINGS THAT ARE WRONG AND EVEN IF THEY DO THE COST WILL BE HIGH I'VE USED THE ANALOGY OF THE GROCERY STORE WHERE THEY HIRE A GUARD TO GUARD EVERY CAN OF SOUP AND THEY NEVER HAVE A CAN STOLEN BUT THEY GO BROKE BECAUSE THEY CAN'T AFFORD THE GUARDS MY BELIEF IS THAT YOU SHOULD PUT A GUARD AT THE FRONT DOOR AND MAYBE MAKE SURE THAT NOBODY WALKS OUT WITH A CASE OF SOUP BUT THE IDEA IS NOT TO DRIVE YOURSELF OUT OF BUSINESS AT THE PENTAGON THE COST OF CONFLICT RULES MAY BE A GAP OF TOPFLIGHT MANAGERS AT A TIME OF CONSOLIDATION BOTH WITHIN THE AGENCY AND AMONG ITS CONTRACTORS MARTIN MARIETTA IS PLAYING A BIG PART IN THE INDUSTRY REALIGNMENT RECENTLY AGREEING TO BUY GE AEROSPACE TO FORM THE WORLD'S LARGEST AEROELECTRONICS UNIT MR AUGUSTINE NOT SURPRISINGLY THINKS WASHINGTON SHOULD ENCOURAGE THIS TREND EVEN THOUGH SOME MEMBERS OF CONGRESS ARE RAISING ANTITRUST OBJECTIONS THEY BELIEVE THAT BLOCKING MERGERS AND ACQUISITIONS WILL HELP KEEP FACTORIES OPEN IN THEIR DISTRICTS OF COURSE IT IS ABSOLUTELY THE WRONG THING TO DO BECAUSE YOU WIND UP WITH A LARGE NUMBER OF INEFFICIENT FIRMS MR AUGUSTINE SAYS THAT MEANS THE PENTAGON WON'T GET A BETTER DEAL ON CONTRACTS IF I WERE A BUYER I'D MUCH RATHER HAVE TWO STRONG COMPETITORS THAN 10 WEAK ONES HE ADDS IN SOME CASES HE ADMITS A SHRUNKEN CONTRACTOR BASE WILL LEAVE ONLY ONE OR EVEN NO DOMESTIC BIDDERS STILL HE OBJECTS TO THROWING THE MARKET WIDE OPEN TO FOREIGNBASED ENTITIES AS FREE TRADERS WOULD FAVOR DEFENSE IS SPECIAL HE MAINTAINS FURTHER MOST MAJOR POTENTIAL SUPPLIERS ABROAD ENJOY STATE HELP BEYOND WHATEVER COZINESS EXISTS IN THE US MILITARYINDUSTRIAL COMPLEX AND MR AUGUSTINE ARGUES THAT A FOREIGN PRESENCE WOULD EFFECTIVELY NATIONALIZE THE INDUSTRY HERE THE ISSUE CAME UP IN A FRENCH OUTFIT'S OFFER TO BUY LTV CORP'S MISSILE DIVISION LAST YEAR MR AUGUSTINE JOINED IN HEADING OFF THE DEAL BECAUSE HE SAYS AS SOON AS YOU LET FOREIGN GOVERNMENTOWNED COMPANIES LOOSE IN OUR MARKET IT WILL DESTROY OUR MARKET IT WILL DESTROY OUR COMPANIES IN THE NATIONAL SECURITY AREA JUST AS CREATING A BIG MONOPOLY WOULD DESTROY THE AUTO INDUSTRY FOREIGN GOVERNMENTS HAVE THE SAME CAPABILITIES AND MORE AS MONOPOLIES THAT WE HAVE HELD TO BE AGAINST THE LAW HE ALSO OPPOSES USING RUSSIAN LAUNCH VEHICLES FOR US SPACE SHOTS AS IS BEING TRIED MARTIN MARIETTA BUILDS TITAN ROCKETS FOR NASA BUT HE ACKNOWLEDGES THAT USING OVERSEAS INPUTS GENERALLY COULD SAVE TAXPAYERS DOLLARS IN THE SHORT RUN WITHOUT QUESTION WE'VE COMPETED IN OUR COMPANY AGAINST FOREIGN GOVERNMENTS AND WE ALWAYS LOSE AS AN ALTERNATIVE HE RECOMMENDS THE PENTAGON ECONOMIZE BY DESIGNING IN THE USE OF COMMERCIAL PARTS SUCH AS TRACTOR ENGINES FOR TANKS THUS TRADING OPTIMUM PERFORMANCE FOR FUTURE AVAILABILITY IN A WORLD SANS EXCLUSIVE DEFENSE SUPPLIERS FOR THE ECONOMY OVERALL HE LIKES WHAT HE HEARS FROM THE CLINTONITES ABOUT KEEPING MILITARY SPENDING UP WHILE A SHIFT TO OTHER TECHNOLOGIES OCCURS OVER TIME HIS BEST HOPE FOR LABOR CONVERSION IS THAT SCIENTISTS AND ENGINEERS FIND HIGHSCHOOL TEACHING JOBS BUT FOR LONGTIME MANAGERS IN HIS INDUSTRY CANDIDLY I DON'T HAVE A GREAT DEAL OF OPTIMISM 9301260005 930126 MANAGING BY JULIE AMPARANO LOPEZ EARLYRETIREMENT PROGRAMS ARE OFTEN FOLLOWED BY A RASH OF HIRING A SIGN THAT THEY CUT TOO DEEPLY OR CUT THE WRONG PEOPLE IN A RECENT SURVEY OF 1100 PERSONNEL OFFICIALS OUTPLACEMENT COUNSELORS RIGHT ASSOCIATES PHILADELPHIA FOUND TWOTHIRDS OF COMPANIES THAT OFFERED EARLY RETIREMENT IN THE PAST FIVE YEARS SAW PEOPLE LEAVE THAT THE EMPLOYERS HAD HOPED TO RETAIN SO MORE THAN HALF OF THOSE COMPANIES HIRED REPLACEMENTS WITHIN TWO YEARS USUALLY WITHIN 12 MONTHS SAYS JOHN R BOURBEAU A RIGHT ASSOCIATES MANAGING PRINCIPAL COMPANIES THAT OFFER EARLY RETIREMENT USUALLY EXPAND THEIR PAYROLL WITHIN A YEAR ACCORDING TO MINSUK MACKLIN STEIN & ASSOCIATES AN OUTPLACEMENT FIRM IN PRINCETON NJ A NEW JERSEY MANUFACTURER WITH 70 MILLION IN ANNUAL SALES HAD TO HIRE ABOUT 20 PEOPLE LAST MONTH AFTER 40 EMPLOYEES ACCEPTED BUYOUTS IN NOVEMBER SAYS DONALD DOELE A MINSUK VICE PRESIDENT EARLYRETIREMENT PROGRAMS WHICH GIVE EXPERIENCED OLDER PERSONNEL ADDITIONAL BENEFITS FOR RETIRING EARLY USUALLY DO NOT LEAVE COMPANIES WITH THE RIGHT EMPLOYEES MR DOELE SAYS COMPANIES OFTEN HAVE TO REPLACE ESSENTIAL TALENT WHO TOOK THE EARLY RETIREMENT IN FACT I DON'T KNOW OF ONE CLIENT THAT HASN'T HAD TO GO OUT AND HIRE PEOPLE AFTER AN EARLYRETIREMENT PROGRAM THE HIRING PREVENTS MANY COMPANIES WITH EARLYRETIREMENT PROGRAMS FROM REACHING COSTCUTTING GOALS TO REPLACE A SALARIED WORKER A COMPANY WILL SPEND AT LEAST HALF OF THE DEPARTING EMPLOYEE'S ANNUAL EARNINGS ON TRAINING AND OTHER EXPENSES SAYS JAMES W PETERS PRESIDENT OF WARGO & CO CONSULTANTS IN MILWAUKEE FOR JOBS THAT DEMAND HIGHLY TECHNICAL OR SPECIALIZED SKILLS THE BILL CAN BE AS MUCH AS 1 1/2 TIMES THE DEPARTING EMPLOYEE'S SALARY MR PETERS SAYS STILL EARLYRETIREMENT PROGRAMS REMAIN THE MOST POPULAR COSTCUTTING TOOL GENERAL MOTORS INTERNATIONAL BUSINESS MACHINES POLAROID AND MANY OTHER BIG EMPLOYERS HAVE MADE EARLYRETIREMENT OFFERS RECENTLY THE NEW ADMINISTRATION HERALDS NEW FACES ON CORPORATE SPEAKERS' PLATFORMS IN ARE SOCIAL ACTIVISTS WOMEN AND ECONOMISTS WHO CAN EXPOUND ON PRESIDENT CLINTON'S AGENDA THE OUTS INCLUDE SUPPLYSIDERS MILLIONAIRES AND ALL BUT A FEW SPORTS HEROES THE TRENDS ARE DRIVEN BY THE POLITICAL PROCESS SAYS PERRY STEINBERG CHAIRMAN OF AMERICAN PROGRAM BUREAU A SPEAKERS' BUREAU IN NEWTON MASS THE FACT THAT A MODERATE DEMOCRAT HAS COME INTO POWER WHO TALKS ABOUT GETTING PEOPLE TOGETHER AND HAVING A RACIALLY AND IN ALL OTHER WAYS BALANCED GROUP SETS THE TONE JUST AS KENNEDY AND FDR SET THE TONE MR STEINBERG SAYS DEMAND IS ESPECIALLY PICKING UP FOR SPEAKERS WHO ADDRESS SOCIAL ISSUES WE HAVE REPRESENTED RALPH NADER FOR 25 YEARS HE SAYS AND I DON'T THINK WE HAVE EVER SEEN HIM HOTTER DANIEL STERN PRESIDENT OF LEIGH BUREAU IN SOMERVILLE NJ SEES GROWING INTEREST IN EXECUTIVES AND ECONOMISTS WHO PARTICIPATED IN THE ECONOMIC FORUM THAT MR CLINTON HELD LAST MONTH ON CORPORATE PLATFORMS THIS SPRING MR STERN EXPECTS TO SEE PEOPLE WHO CAN DISCUSS THE GENERAL SENSE OF DIRECTION THAT THE ECONOMISTS ARE ENCOURAGING CLINTON AND HIS COLLEAGUES TO GO WOMEN ARE MORE IN DEMAND ON THE CORPORATE SPEAKER CIRCUIT BECAUSE OF THEIR HIGHER POLITICAL PROFILE INCLUDING PRESIDENT CLINTON'S SELECTION OF SEVERAL FEMALE CABINET AND STAFF MEMBERS SAYS SUSAN STAUTBERG PRESIDENT OF MASTERMEDIA A NEW YORK SPEAKERS' BUREAU MOREOVER SHE ADDS WOMEN ARE INCREASINGLY INVOLVED IN CHOOSING CORPORATE SPEAKERS SO MORE COMPANIES DEMAND AT LEAST ONE WOMAN ON A MEETING PLATFORM DEMAND FOR MINORITY MANAGERS IS HEATING UP EXECUTIVE RECRUITERS SAY RICHARD CLARKE ASSOCIATES A NEW YORKBASED FIRM THAT SPECIALIZES IN SEARCHES FOR MINORITY MANAGERS REPORTS ITS MINORITYSEARCH ASSIGNMENTS JUMPED 50 IN SEPTEMBER FROM A YEAR EARLIER AMANDA FOX A VICE PRESIDENT IN THE CHICAGO OFFICE OF RECRUITERS PAUL R RAY & CO SAYS BUSINESSES REQUEST MINORITIES AND WOMEN IN 65 OF THE FIRM'S EXECUTIVE SEARCHES UP FROM 40 A YEAR AGO ONE REASON FOR THE INCREASE CORPORATIONS THAT HAVEN'T SUCCESSFULLY PROMOTED MINORITIES NOW ARE LOOKING OUTSIDE FOR QUALIFIED CANDIDATES TO FILL SENIOR POSITIONS RICHARD CLARKE PRESIDENT OF THE SEARCH FIRM BEARING HIS NAME SAYS COMPANIES REALIZE THEY MUST DIVERSIFY THEIR TOP RANKS TO REMAIN COMPETITIVE IN RECRUITING LOWERLEVEL TALENT RECRUITERS SAY MOST SEARCHES FOR MINORITY EXECUTIVES ARE TO FILL DIRECTOR AND VICE PRESIDENTIAL POSITIONS IN THE SALES MARKETING AND COMPUTER FIELDS THE INCREASED DEMAND IS PROMPTING MANY SEARCH FIRMS TO SET UP SEPARATE ARMS FOR MINORITY RECRUITING WARD HOWELL A NEW YORK FIRM ESTABLISHED A DIVERSITY PRACTICE LAST YEAR THOUGH IT FOCUSES MAINLY ON FINDING MINORITY TALENT THE UNIT ALSO ADVISES COMPANIES ON RETAINING AND PROMOTING MINORITY EMPLOYEES SAYS LARRY POORE ITS HEAD FEW COMPANIES HAVE FIGURED OUT WHO SHOULD SUCCEED THEIR CHIEF EXECUTIVE OFFICERS SUGGESTS A SURVEY BY KORN/FERRY ORGANIZATIONAL CONSULTING NEW YORK AN ARM OF EXECUTIVE RECRUITERS KORN/FERRY INTERNATIONAL MORE THAN 66 OF LARGE CORPORATIONS HAVEN'T IDENTIFIED A SUCCESSOR AND MORE THAN 60 HAVEN'T DETERMINED WHEN SUCCESSION WILL OCCUR ACCORDING TO THE POLL OF 726 DIRECTORS EXECUTIVE SECRETARIES CAN EARN AS MUCH AS MIDDLE MANAGERS SAYS A SURVEY BY EXECUTIVE RESOURCE GROUP A CONSULTING FIRM IN WILTON CONN THE FIRM POLLED EXECUTIVE SECRETARIES AT 63 FORTUNE 500 COMPANIES AND FOUND THAT CHIEF EXECUTIVES' SECRETARIES HAD AVERAGE PAY OF 53600 SALARIES FOR SECRETARIES OF THE SIX OTHER TOP OFFICERS WERE IN THE SAME RANGE 9301260004 930126 RETAILING SEARS TRIMS OPERATIONS ENDING AN ERA BY GREGORY A PATTERSON AND CHRISTINA DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO OVERHAULED ITS FALTERING RETAIL BUSINESS DROPPING ITS FAMOUS CATALOG CUTTING 50000 JOBS AND BACKING AWAY FROM THE IDEA THAT SEARS SHOULD SELL ALL THINGS TO ALL PEOPLE THE NEW SEARS WILL BE A MUCH SMALLER MORE FOCUSED CONCERN AND INSISTS THE PRINCIPAL ARCHITECT OF THE OVERHAUL MERCHANDISING CHIEF ARTHUR C MARTINEZ MORE PROFITABLE BUT THE CHANGES WILL ALSO BE PAINFUL FOR THE NATION'S THIRDLARGEST RETAILER AND ITS EMPLOYEES THE COMPANY SAID IT IS CLOSING ITS AILING 33 BILLION CATALOG UNIT SHUTTING 113 UNPROFITABLE STORES AND TAKING OTHER STEPS THAT TOGETHER WILL LEAD TO THE DISMISSAL OF 50000 FULL AND PARTTIME EMPLOYEES OR NEARLY 15 OF THE COMPANY'S 350000 MERCHANDISING EMPLOYEES THE RESTRUCTURING WILL RESULT IN A 17 BILLION CHARGE TO BE TAKEN AGAINST THE COMPANY'S 1992 FOURTHQUARTER RESULTS SEARS SAID PART OF THAT WILL PAY FOR AN EARLYRETIREMENT PLAN THAT SEARS WILL OFFER TO 4000 SALARIED EMPLOYEES IN ITS CORPORATE AND MERCHANDISE GROUP THE BREADTH AND SEVERITY OF THE STREAMLINING SURPRISED EVEN SOME OF SEARS'S HARSHEST CRITICS WHO IN RECENT YEARS CHASTISED PREVIOUS RESTRUCTURING EFFORTS AS BEING TOO TIMID IT'S A VERY DRAMATIC ACTION AND IT'S VERY RATIONAL SAID JANET MANGANO AN ANALYST WITH BURNHAM SECURITIES INC THE MOVES RESPOND DIRECTLY TO THE PROBLEMS SHE SAID BUT TO MR MARTINEZ A FORMER SAKS FIFTH AVENUE EXECUTIVE WHO JOINED SEARS ONLY FIVE MONTHS AGO THE RESTRUCTURING IS A PAINFUL BUT NECESSARY STEP TO CORRECT A NUMBER OF CHRONIC BUSINESS PROBLEMS HE DIDN'T SHARE THE HESITANCY OF PREVIOUS MERCHANDISING CHIEFS INCLUDING SEARS CHAIRMAN EDWARD A BRENNAN A THIRDGENERATION SEARS MAN TO DISCONTINUE THE UNPROFITABLE CATALOG OPERATIONS I'M FACING REALITY MR MARTINEZ SAID IN AN INTERVIEW I'M TRYING TO DEAL WITH IT IN A VERY RATIONAL AND UNEMOTIONAL WAY JUST LAST WEEK AT A RETAIL CONFERENCE IN NEW YORK HE HINTED AT IMPENDING CHANGES BY ASSERTING THAT SEARS WOULD CLOSE OR SELL ANY OPERATIONS THAT EITHER WEREN'T PART OF ITS CORE BUSINESS OR DIDN'T HOLD OUT THE POSSIBILITY OF BECOMING PROFITABLE SEARS'S OVERHAUL OF ITS MERCHANDISE DIVISION COMPLEMENTS ITS PLAN TO RESTRUCTURE ITS FINANCIAL SERVICES UNIT THAT PLAN ANNOUNCED IN SEPTEMBER CALLS FOR SEARS TO SPIN OFF ITS DEAN WITTER UNIT SELL 20 OF ITS ALLSTATE INSURANCE SUBSIDIARY AND SELL ALL OF ITS COLDWELL BANKER REAL ESTATE UNIT THOSE MOVES WILL ELIMINATE SOME 6 BILLION IN ANNUAL REVENUE FROM SEARS'S TOTAL OF ABOUT 58 BILLION YESTERDAY'S ANNOUNCEMENT INVOLVES SOME 4 BILLION OF THE MERCHANDISING UNIT'S 31 BILLION IN ANNUAL REVENUE SEARS'S TOTAL CORPORATE EMPLOYMENT COULD FALL BY NEARLY 100000 TO 335000 AFTER THE CATALOG CLOSING SPINOFFS AND DIVESTITURES OF ALL THE CHANGES ANNOUNCED YESTERDAY THE SHUTDOWN OF THE CATALOG OPERATIONS WAS THE MOST SURPRISING THOUGH THE CATALOG OPERATIONS HAVEN'T BEEN PROFITABLE SINCE 1985 SEARS EXECUTIVES HELD ON TO THE UNIT COMPANY OFFICIALS SAID LOSSES AT THE CATALOG MOUNTED TO 175 MILLION LAST YEAR AND HAVE BEEN AT LEAST 135 MILLION IN EACH OF THE PAST THREE YEARS SEARS PLANS TO CLOSE NEARLY ALL ITS US CATALOG OPERATIONS BY THE YEAR END AND ITS 91 CATALOG OUTLET STORES BY THE END OF 1994 THE COMPANY WILL CONTINUE TO ACCEPT ORDERS FROM ITS CURRENT CATALOGS THROUGH THIS YEAR AND WILL CONTINUE TO ISSUE SOME SPECIALTY CATALOGS FOR INDIVIDUAL SEGMENTS SUCH AS APPLIANCES AND WOMEN'S CLOTHING BUT EVEN THOSE WILL BE GONE NEXT YEAR MR MARTINEZ SAID SEARS'S CATALOG BECAME AN ANACHRONISM SAID CHICAGO CATALOG CONSULTANT ARNOLD FISHMAN FOR MORE THAN A DECADE NOW CONSUMERS HAVE PREFERRED TO DO THEIR CATALOG SHOPPING IN SMALLER MORE FOCUSED SPECIALTY CATALOGS RATHER THAN THE VOLUMINOUS BIG BOOK THAT CARRIES EVERYTHING FROM REMANUFACTURED AUTO ENGINES TO WASHERS AND DRYERS AND CHILDREN'S CLOTHES SEARS WAS ALSO LATE TO OFFER CUSTOMERS SUCH CATALOG SERVICES AS A 24HOUR 800 NUMBER FOR TELEPHONE ORDERS A TEAM OF SENIOR MANAGERS AT SPIEGEL INC THE LARGEST DIRECT MARKETER IN THE CATALOG INDUSTRY HAS ALREADY BEEN STUDYING THE SEARS CATALOG CUSTOMER BASE FOR CONSUMER NICHES TO GO AFTER ONCE THE SEARS CATALOG FOLDED WE'VE BEEN EXPECTING THIS FOR SOME TIME A SPIEGEL SPOKESWOMAN SAID SPIEGEL'S STOCK CLOSED AT 1875 A SHARE UP 75 CENTS IN BIG BOARD TRADING BUT SEARS'S STRATEGY TO FOCUS ITS MERCHANDISE OPERATIONS SHOULD MAKE ITS STORES MORE VIABLE COMPETITORS FINALLY THE SLEEPING GIANT IS BEGINNING TO WAKE UP AND GIVE ITS COMPETITORS A RUN FOR THEIR MONEY SAID KURT BARNARD PUBLISHER OF THE RETAIL MARKETING REPORT IN NEW YORK INDEED WHILE PENNEY STANDS TO BENEFIT FROM THE DEMISE OF THE SEARS CATALOG THE PLAN TO REVAMP SEARS'S STORES MAY HURT PENNEY IN THE LONGTERM IT WILL MAKE PENNEY'S MIDDLE MARKET MUCH MORE COMPETITIVE SAID THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN STILL SOME ANALYSTS INDICATED IT'S TOO SOON TO GAUGE WHETHER SEARS'S ACTIONS WILL SUCCEED IT SHOULD HAVE BEEN DONE SOONER BUT IS IT SO LATE THAT SEARS CAN'T BECOME COMPETITIVE AGAIN I THINK IT'S TOO SOON TO SAY SAID WILLIAM SMITH AN ANALYST WITH SMITH BARNEY HARRIS & UPHAM SEARS'S ANNOUNCEMENT WAS GREETED WITH A MIXED RESPONSE FROM THE RATINGS AGENCIES STANDARD & POOR'S CORP WHICH PUT SEARS ON CREDITWATCH WITH NEGATIVE IMPLICATIONS LAST MONTH SAID IT'S STILL WEIGHING A DOWNGRADE OF THE COMPANY'S 17 BILLION OF LONGTERM DEBT S&P TERMED THE ANNOUNCEMENT A NECESSARY STEP IN ENHANCING THE COMPETITIVE POSITION AND PROFITABILITY OF THE RETAIL UNIT BUT THE AGENCY SAID SEARS STILL NEEDS TO EXAMINE THE LONGTERM COMPETITIVENESS OF ITS RETAIL BUSINESS AND OVERALL FINANCIAL CONDITION RESULTING FROM PLANNED SPINOFFS ASSET SALES AND BIG CHARGES S&P ALSO SAID IT'S CONCERNED ABOUT THE LARGERTHANEXPECTED LOSSES AT ALLSTATE WHICH HAS BEEN ONE OF SEARS'S BETTER PERFORMERS MEANWHILE MOODY'S INVESTORS SERVICES INC SAID ITS DOWNGRADE LAST MONTH OF SEARS'S DEBT TOOK INTO ACCOUNT YESTERDAY'S ANNOUNCEMENT AMONG OTHER THINGS SEARS SAID IT WILL REFOCUS SOME OF ITS MERCHANDISE LINES AND SERVICES FOR EXAMPLE THE RETAILER WON'T ANY LONGER PROVIDE CERTAIN BACKSHOP SERVICES SUCH AS TUNEUPS AT ITS AUTO CENTERS THE AUTOREPAIR OPERATIONS WERE THE CENTER OF CONTROVERSY LAST SUMMER ARISING FROM ALLEGATIONS THAT SEARS RECOMMENDED UNNECESSARY REPAIRS MR MARTINEZ SAID THE BACKSHOP SERVICES HAVEN'T BEEN SUFFICIENTLY PROFITABLE THE AUTO CENTERS WILL INSTEAD FOCUS ON TIRE AND BATTERY SALES AND RELATED SERVICES INCLUDING WHEEL BALANCING ALSO THE COMPANY SAID IT WILL ELIMINATE SOME 5000 FULL AND PARTTIME SALES POSITIONS IN ITS HOMEIMPROVEMENT SERVICES OPERATIONS WHICH MARKET SIDING HEATING AND AIR CONDITIONING SEARS INTENDS TO HAVE OUTSIDE CONTRACTORS MARKET MORE OF THESE SERVICES IN ADDITION SEARS SAID IT WILL TAKE A 19 BILLION NONCASH CHARGE FOR 1992 TO REFLECT THE ADOPTION OF NEW FINANCIAL STANDARDS REGARDING RETIREMENT HEALTH CARE EXPENSES THE RETAILER ALSO SAID IT WOULD ESTABLISH A 200 MILLION RESERVE TO WRITE DOWN THE VALUE OF CERTAIN REAL ESTATE PROPERTIES 9301260003 930126 TOPPS EXPECTS TO POST LOSS IN CURRENT PERIOD AMID WEAK MARKET NEW YORK TOPPS CO CITING CONTINUED SOFTNESS IN THE SPORTS CARD MARKET SAID IT EXPECTS TO REPORT A NET LOSS FOR ITS FISCAL FOURTH QUARTER ENDING FEB 27 THE COMPANY SAID SHIPMENTS IN THE QUARTER WILL BE SIGNIFICANTLY LOWER THAN IT HAD ANTICIPATED IN ADDITION IT SAID IT IS INCREASING PROVISIONS FOR OBSOLESCENCE AND RETURNS IN THE YEAREARLIER FOURTH QUARTER TOPPS HAD NET INCOME OF 127 MILLION OR 27 CENTS A SHARE ON 847 MILLION IN SALES THE COMPANY'S STOCK TRADED AS HIGH AS 20 A SHARE A YEAR AGO BUT HAS BEEN SLIDING AND CLOSED YESTERDAY AT 1225 A SHARE DOWN 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING TOPPS'S SHARES DROPPED 19 ONE DAY IN DECEMBER AFTER THE COMPANY REPORTED A DECLINE IN FISCAL THIRDQUARTER SALES AND EARNINGS ANALYSTS WERE SURPRISED BY THE MAGNITUDE OF THE SALES DECLINE AT THE TIME THE COMPANY AUTHORIZED REPURCHASE OF AS MANY AS FIVE MILLION OF ITS COMMON SHARES CITING AN ATTRACTIVE BUYING OPPORTUNITY TOPPS'S THIRDQUARTER NET FELL TO 114 MILLION OR 24 CENTS A SHARE FROM 141 MILLION OR 30 CENTS A SHARE A YEAR EARLIER SALES FELL TO 626 MILLION FROM 741 MILLION IN MIDOCTOBER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOWED HEAVY INSIDER SELLING IN TOPPS SHARES THE COMPANY HAS FACED INCREASED COMPETITION FROM NEW ENTRANTS INTO THE CARDCOLLECTING MARKET IN THE LATEST ANNOUNCEMENT TOPPS CHAIRMAN ARTHUR T SHORIN CALLED THE SOFTNESS A MARKET CONTRACTION RATHER THAN A SEASONAL FLUCTUATION THE SPECULATIVE FRENZY OF THE LAST FEW YEARS IS GIVING WAY TO A HOBBY REFLECTING TRUE COLLECTOR INTEREST AND WE ARE POSITIONING THE COMPANY TO OPERATE EFFECTIVELY AND PROFITABLY GOING FORWARD IN THIS NEW ENVIRONMENT 9301260002 930126 USLICO TO CUT PAYOUT SET 4THPERIOD CHARGE AND POST LOSS FOR 1992 ARLINGTON VA USLICO CORP SAID IT WOULD SLASH ITS DIVIDEND AND REPORT A LOSS FOR 1992 FOLLOWING A 719 MILLION FOURTHQUARTER CHARGE USLICO A HOLDING COMPANY SPECIALIZING IN LIFE INSURANCE SAID THE CHARGE OF 668 A SHARE MOSTLY RELATES TO SEVERAL NONCASH ITEMS INCLUDING THE WRITEOFF OF GOODWILL AND DEFERRED POLICY ACQUISITION COSTS THE ACTION ANNOUNCED AFTER THE CLOSE OF STOCK TRADING YESTERDAY COMES FOUR MONTHS AFTER THE OUSTER OF CHARLES V GIUFFRA AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHAT WE'VE DONE IS CLEAR THE DECKS AND REMOVED SOME NONEARNING ASSETS FROM THE BALANCE SHEET SAID DANIEL CALLAHAN WHO SUCCEEDED MR GIUFFRA USLICO CUT THE QUARTERLY DIVIDEND TO SIX CENTS A SHARE FROM 25 CENTS A SHARE ANALYST RAY DIRKS WITH NEW YORKBASED RAS SECURITIES SAID THE ANNOUNCEMENT WILL NOT SIT WELL WITH INVESTORS MANY OF WHOM BOUGHT THE STOCK FOR ITS ROUGHLY 5 YIELD FOR SHAREHOLDERS THIS IS PRETTY SIGNIFICANT HE SAID THE STOCK HAS BEEN A POOR PERFORMER AND THE DIVIDEND WAS THE REASON IT TRADED AS HIGH AS IT DID THE COMPANY ALSO FROZE SENIOR OFFICER SALARIES AT 1992 LEVELS ON THE NEW YORK STOCK EXCHANGE YESTERDAY USLICO CLOSED AT 1925 DOWN 625 CENTS MR DIRKS EXPECTS THE STOCK TO OPEN FOR TRADING TODAY AT BETWEEN 1450 AND 1750 A SHARE USLICO'S LIFE INSURANCE SUBSIDIARIES ARE RATED APLUS BY AM BEST CO MR CALLAHAN SAID THE COMPANY'S RATINGS ARE UNLIKELY TO BE AFFECTED BY THE LOSS BECAUSE THE COMPONENTS MOSTLY INVOLVE NONCASH ITEMS THE COMPANY HAD A BOOK VALUE OF ABOUT 30 A SHARE AT THE END OF THE THIRD QUARTER THE COMPANY HAS 3 BILLION IN ASSETS 9301260001 930126 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION INTEGRATED CIRCUIT SYSTEMS INC AN OFFERING OF TWO MILLION COMMON SHARES VIA ALEX BROWN & SONS INC PRUDENTIAL SECURITIES INC AND PENNSYLVANIA MERCHANT GROUP LTD LEARNING CO AN OFFERING OF 13 MILLION COMMON SHARES VIA MORGAN STANLEY & CO AND ROBERTSON STEPHENS & CO PILLOWTEX CORP AN INITIAL OFFERING OF 39 MILLION COMMON SHARES 9301250179 930125 SHEIK'S LAWYERS TRY TO OVERTURN EFFORTS BY BCCI LIQUIDATORS TO FREEZE HIS ASSETS BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTORNEYS FOR SHEIK KHALID BIN MAHFOUZ SOUGHT TO OVERTURN ATTEMPTS BY LIQUIDATORS OF BCCI HOLDINGS LUXEMBOURG SA TO FREEZE THE SAUDI ARABIAN BANKER'S US ASSETS AND TO SUE HIM FOR 315 BILLION UNDER FEDERAL RACKETEERING STATUTES IN A FILING FRIDAY IN FEDERAL COURT HERE SHEIK KHALID'S LAWYERS SAID THE COURT LACKS JURISDICTION OVER THE SAUDI ARABIAN FINANCIER THAT HE HASN'T BEEN PROPERLY SERVED IN THE LEGAL PROCEEDINGS AND THAT THE RACKETEERING STATUTE INVOKED ISN'T APPLICABLE TO FOREIGN NATIONALS ACTING OVERSEAS SHEIK KHALID'S LAWYERS GARY NAFTALIS AND ANDREW FREY ALSO SAID A SIGNATURE SAYING SHEIK KHALID ON A KEY 1990 BCCI DOCUMENT CONFIRMING LOANS FROM BCCI TO HIM IS A FORGERY SUCH ALLEGED CONFIRMATIONS FROM BORROWERS ALLOWED BCCI TO COVER UP HUGE HOLES IN ITS ACCOUNTS BEFORE ITS SEIZURE BY REGULATORS ON JULY 5 1991 THE ATTORNEYS FOR THE SHIEK A FORMER DIRECTOR AND SHAREHOLDER OF BCCI ARGUED FURTHER THAT THE LIQUIDATORS' CASE AGAINST THEIR CLIENT IS WITHOUT MERIT BECAUSE HE IS A VICTIM OF THE BCCI SCANDAL AS HE HIS FAMILY AND ITS NATIONAL COMMERCIAL BANK ALTOGETHER HAD NEARLY 800 MILLION ON DEPOSIT WITH BCCI WHEN THE BANK WAS SEIZED THE LIQUIDATORS HOWEVER ARGUE THAT SHEIK KHALID HELPED TO PERPETRATE FRAUD AT BCCI PROPPING UP THE SHAKY BANK IN ITS LATER YEARS BY HELPING TO DISGUISE ITS TRUE FINANCIAL CONDITION FROM DEPOSITORS AND REGULATORS SHEIK KHALID ACQUIRED AS MUCH AS 30 OF THE SHARES IN BCCI AND THE HOLDING COMPANY FOR FIRST AMERICAN BANKSHARES INC IN 1986 BUT LATER SOLD OUT OF BOTH BANKS THE SAUDI BANKER'S LAWYERS SAID HIS PURCHASE AND SALE OF THESE SHARES WAS SUPERVISED AND VETTED BY LAWYERS AT WASHINGTONBASED AKIN GUMP STRAUSS HAUER & FELD WHICH WAS THEN ACTING AS COUNSEL FOR SHEIK KHALID AND HIS BANK THE SAUDI BANKER DIDN'T DISGUISE HIS BCCI SHARE DEALINGS AS REGULATORS HAVE ALLEGED HIS LAWYERS STATED FURTHERMORE THE SHEIK'S LAWYERS SAID BCCI'S LIQUIDATORS WEREN'T SUING WITH CLEAN HANDS THE BANKING GROUP THEY ADDED IS A CONVICTED FELON AND AN ADMITTED PARTICIPANT IN MASSIVE FRAUDS MOREOVER HALF OF THE BENEFIT OF ANY RECOVERIES MADE BY THE LIQUIDATORS WILL GO TO THE GOVERNMENT OF ABU DHABI THE MAJORITY SHAREHOLDER OF BCCI SHEIK KHALID ALSO ISN'T A FUGITIVE FROM US JUSTICE AS THE LIQUIDATORS HAVE ALLEGED HIS LAWYERS SAID THE BANKER WHO HAS DIABETES AND SUFFERED A HEART ATTACK LATE LAST MONTH ISN'T SUFFICIENTLY WELL TO TRAVEL TO THE US ACCORDING TO AFFIDAVITS FROM HEART SPECIALISTS IN THE US AND SAUDI ARABIA THAT WERE FILED WITH THE COURT FRIDAY IN FILING PAPERS WITH THE FEDERAL COURT SHEIK KHALID'S LAWYERS WERE REACTING TO LEGAL MOVES MADE LAST MONTH ON DEC 9 THE LIQUIDATORS APPLIED TO FEDERAL JUDGE JOYCE HENS GREEN FOR A TEMPORARY RESTRAINING ORDER OR FREEZE OF SHEIK KHALID'S ASSETS THE LIQUIDATORS ARE SEEKING TREBLE DAMAGES FROM SHEIK KHALID FOR THE 105 BILLION DEFICIT THEY HAVE FOUND IN BCCI'S ACCOUNTS ERIC LEWIS REPRESENTING THE LIQUIDATORS ALLEGED IN FEDERAL COURT THAT SHEIK KHALID HIS OFFICE MANAGER HAROON KAHLON AND THE MAHFOUZ FAMILY'S NATIONAL COMMERCIAL BANK WERE WILLING AND KNOWING COCONSPIRATORS IN ENGINEERING THIS FRAUD AT BCCI AND IN SHIELDING FROM REGULATORS AND FROM DEPOSITORS THE BAD NEWS ABOUT BCCI IN SEPARATE ACTIONS THE FEDERAL RESERVE IN JULY 1992 FINED SHEIK KHALID 170 MILLION FOR ALLEGED BREACHES OF US BANKING LAWS AND A NEW YORK STATE GRAND JURY IN JULY 1992 INDICTED HIM FOR ALLEGED BANK FRAUD INCLUDING ALLEGEDLY STEALING AS MUCH AS 300 MILLION FROM BCCI'S DEPOSITORS SHEIK KHALID HAS DENIED THESE CHARGES AND SAID HE WILL VIGOROUSLY CONTEST THEM 9301250178 930125 MANAGER'S JOURNAL RASPY THROAT READ THIS MR PRESIDENT BY RALPH PROODIAN PRESIDENT CLINTON SOUNDS HOARSE AT BEST HIS VOICE WARBLES NEWSPAPER COLUMNIST WILLIAM SAFIRE REPORTED ON JAN 14 THAT DOCTORS HAD BEEN PRESCRIBING A CORTICOSTEROID SPRAY WHICH AFTER EXTENDED USE COULD CAUSE SIDE EFFECTS RANGING FROM HYPERTENSION TO MENTAL ABERRATIONS BESIDES BEING A HEALTH RISK A STRAINED THROAT SERIOUSLY HANDICAPS A LEADER'S ABILITY TO CONVEY A MESSAGE ON ITS OWN MERITS DURING THE DEPRESSION FRANKLIN ROOSEVELT'S VOICE KEPT HOPE ALIVE IN WORLD WAR II WHEN DESPAIR SEEMED PRELUDE TO DEFEAT WINSTON CHURCHILL'S VOICE HELD THE WESTERN ALLIANCE TOGETHER IF YOU THINK IT WAS MORE WHAT THEY SAID THAN HOW THEY SOUNDED IMAGINE ANY WEAKVOICED SENATOR CEO LAWYER OR COLLEGE PROFESSOR READING ALOUD A CHURCHILL SPEECH DO YOU HONESTLY BELIEVE THE SAME WORDS WOULD CARRY THE SAME POWER OUT OF ANY THROAT THE FIRST PROBLEM OUR NEW PRESIDENT HAS IN ADDRESSING HIS HOARSE VOICE IS THAT ITS ROOT CAUSE HAS YET TO BE DISCOVERED PRESIDENT CLINTON'S SORE THROAT HAS BEEN BLAMED ON ALLERGIES TOO MUCH COFFEE LOUD TALKING IN DRY OR SMOKEFILLED ROOMS AND STOMACH ACID FOR THE PAST 10 MONTHS THOSE ISSUES HAVE BEEN WATCHED AND TREATED YET HIS VOICE HAS NOT BEEN REPAIRED IN FACT I BELIEVE THAT WHEN MR CLINTON TALKS HE IRRITATES HIS VOCAL CORDS BY THE WAY HE TENSES HIS THROAT AND MOUTH MUSCLES THE BEST REMEDY IS TO RETRAIN THOSE MUSCLES IT'S NOT A GOOD TIME FOR THAT YET THE PRESIDENT AND ALL OTHER EXECUTIVES WHO NEED STRONG VOICES TO CONVEY THEIR MESSAGES CAN TAKE A FEW EASY STEPS TO RELIEVE THEIR THROATS AND IMPROVE THE POWER OF THEIR MESSAGE MOST SPEECH TRAINERS ARE SO ENTANGLED IN A MAZE OF MYTHOLOGY THAT THEY THEMSELVES CONFUSE FACT AND FICTION SPEAK FROM THE DIAPHRAGM BREATHE FROM THE STOMACH KEEP YOUR THROAT OPEN AND RELAXED OPEN YOUR MOUTH TO LET THE VOICE OUT ETC IF YOU BELIEVE YOU CAN TALK FROM ANYWHERE BUT YOUR THROAT AND MOUTH YOU ARE FLOATING IN FANTASY CONSIDER YOUR PHYSIOLOGY IF YOU DIDN'T HAVE THOSE TWO SMALL FLAPS OF TISSUE VOCAL CORDS RIGHT BEHIND YOUR ADAM'S APPLE YOU WOULDN'T BE ABLE TO MAKE ANY SOUND EXCEPT BY STAMPING A FOOT OR CLAPPING HANDS AND IF YOU DIDN'T HAVE A TONGUE YOU WOULDN'T BE ABLE TO TALK AT ALL NO ONE CAN TALK FROM THE DIAPHRAGM THE REASON IS SIMPLE WHEN IT DROPS WHICH IS ALL IT CAN DO IT SUCKS AIR INTO THE LUNGS NO ONE TALKS WHILE INHALING THE BEST ADVICE ABOUT THE DIAPHRAGM IS TO FORGET ABOUT IT WHEN THE DIAPHRAGM DROPS IT PUSHES DOWN THE GUT BELOW IT EXPANDING THE STOMACH WALL BUT THAT ISN'T PROOF THAT AIR IS GOING INTO THE STOMACH THERE'S NO CONNECTING ROUTE BETWEEN THE WINDPIPE AND THE STOMACH YOU SIMPLY CAN'T BREATHE WITH THE STOMACH DESPITE WHAT VOICE TRAINERS TELL YOU YOUR VOICE STARTS IN THE THROAT AND IS AMPLIFIED IN THE THROAT AND MOUTH AND NOWHERE ELSE THE LIPS CAN'T AMPLIFY ANY SOUND NOT BEING A HARD SOUNDING BOARD OR CAVITY AND THE NOSE CONTRIBUTES LITTLE SO PRESIDENT CLINTON WHAT SHOULD YOU DO ABOUT YOUR THROAT NOW FIRST RECOGNIZE THAT BREATH CONTROL PRESS REPORTS SUGGEST THAT'S WHERE YOU'VE BEEN FOCUSING HASN'T HELPED YOUR THROAT THROAT TENSION RESULTS FROM REFLEXES DEEPLY INGRAINED IN THROAT MUSCLES YOU REINFORCE THEIR GRIP ON YOUR THROAT EVERY TIME YOU TALK INCORRECTLY HOWEVER YOU CAN GET VERY QUICK RELIEF FOR YOUR VOCAL CORDS BY CONCENTRATING MAINLY ON RATIONAL PHRASING ALWAYS FIT YOUR PHRASES TO YOUR IDEAS THAT WILL HELP YOU AVOID GLOTTAL ATTACKS THE TERM GLOTTALS REFERS PRIMARILY TO VOWELS THAT ARE THE FIRST SOUND IN WORDS THEY ARE SHARP TINY CLICKS LIKE THE SNAPPING OF TWO FINGERNAILS PEOPLE OFTEN USE THEM TO BE EMPHATIC AND CLEAR DRILL SERGEANTS LOVE THEM SINGERS FEAR THEM AND SO SHOULD YOU IN ONE SHORT SEGMENT OF YOUR INAUGURAL SPEECH YOU OPENED YOURSELF TO 15 GLOTTAL ATTACKS OUR DEMOCRACY MUST BE NOT ONLY THE ENVY OF THE WORLD BUT THE ENGINE OF OUR OWN RENEWAL SINCE GLOTTALS ARE MADE BY THE EDGES OF THE VOCAL CORDS STRIKING HARD AGAINST EACH OTHER THEY SWIFTLY BUTCHER YOUR THROAT IN ADDITION SINCE EVERY GLOTTAL ATTACK IS ALSO A STOP IN YOUR VOICE YOU CUT UP IDEAS INTO BITS LEAVING IT UP TO YOUR LISTENERS TO PUT THEM TOGETHER THAT JOB TIRES LISTENERS AND MAKES A SPEAKER SEEM TEDIOUS BUT DON'T DESPAIR GLOTTALS ARE EASY TO FIX SINCE THEY NEVER OCCUR IN THE MIDDLE OF A WORD ALWAYS ON INITIAL VOWELS YOU CAN ELIMINATE THEM BY LINKING THE LAST SOUND OF THE PREVIOUS WORD INTO THOSE VOWELS MAKING THEM FEEL LIKE MIDDLE VOWELS YOU WILL NOTICE FAST RELIEF FOR YOUR THROAT YOUR VOICE WILL GET STRONGER AND YOUR PHRASES WON'T TIRE LISTENERS ALSO TO IMPROVE YOUR FLUENCY AND STRENGTHEN YOUR IDEAS EVEN FURTHER RUN PAST SUCH SHORT PREPOSITIONS AND VERBS AS AT ON AS IS OR AND OF ARE A AN WHEN YOU STRESS ANY OF THOSE WORDS YOU'RE VERY LIKELY TO DO IT WITH A GLOTTAL WHY BOTHER THEY DON'T HAVE CONTENT OF THEIR OWN SO HITTING THEM SIMPLY WEAKENS YOUR POINT JUST WHEN YOU WANT IT STRONG IN ADDITION WHEN YOUR PHRASES ARE MORE FLUENT YOU'LL PUSH YOUR THROAT LESS YOU'LL KNOW THAT YOUR IDEAS ARE FLOWING OUT OF YOUR MOUTH FASTER AND ARE LESS LIKELY TO BORE YOUR LISTENERS MANY PEOPLE THINK THAT FLUENT TALKING IS COLORLESS AND DULL BUT NOT IF THE PRINCIPLES OF GOOD EXPRESSION ARE CORRECTLY USED AND IT IS MUCH EASIER TO TURN THESE PRINCIPLES INTO PRACTICE THAN TO ATTEMPT TO PLACE THE VOICE IN THE NOSE AND ON THE LIPS OR TO BREATHE FROM THE STOMACH OR TALK WITH THE DIAPHRAGM OR TO DO EXERCISES LIKE HUMMING RELAXING AND STRETCHING THAT NEVER CARRY OVER TO TALK IT'S BETTER TO THINK ABOUT WHAT YOU'RE SAYING THAN TO FOOL AROUND WITH THOSE FANTASIES JUST AS THE PRESIDENT NEEDS TO INSPIRE AND SOOTHE THE NATION BUSINESS EXECUTIVES AT EVERY LEVEL FACE THE SAME PRESSURES TO LEAD WHEN CUTBACKS IN PRODUCTION AND BUDGETS REQUIRE STAFF REDUCTIONS YOU CAN'T AFFORD A VOICE THAT WAFFLES AFTER ALL YOUR VOICE IS HEARD BEFORE THE MESSAGE SINKS IN ONLY IF YOUR VOICE STRIKES AN AUDIENCE RIGHT WILL YOU GET TRUE INTEREST AND RESPECT MR PROODIAN IS A NEW YORK CITYBASED SPEECH COACH 9301250177 930125 LEISURE & ARTS ON SPORTS TRIPLE JEOPARDY BY FREDERICK C KLEIN PHOENIX NANCY KERRIGAN A SLIM DARKHAIRED 23YEAROLD FROM STONEHAM MASS FINISHED FOURTH IN THE WOMEN'S SINGLES PORTION OF THE US FIGURE SKATING CHAMPIONSHIPS IN 1990 THIRD IN 1991 AND SECOND LAST YEAR SO IT FIGURED THAT ON SATURDAY NIGHT HERE IN THE MEET'S 1993 EDITION SHE WOULD WIN IT AND IF HER PERFORMANCE IN THE FINAL WAS UH UNSCINTILLATING INCLUDING A FALL ON ONE JUMP AND A STUMBLE ON ANOTHER WELL THERE WAS A BRIGHT SIDE TO THAT TOO LET'S JUST SAY I LEFT MYSELF ROOM TO KEEP IMPROVING SHE SAID SMILING BRIGHTLY THERE'S A WORLD'S CHAMPIONSHIP STILL TO COME YOU KNOW THERE'S AN OLYMPICS AHEAD TOO AND IN FEBRUARY 1994 AT THAT SO LAST WEEK'S SKATEFEST TOOK ON MORE IMPORTANCE THAN THE USUAL YEARAFTERANOLYMPICS NATIONALS KERRIGAN A THIRDPLACE FINISHER AT THE '92 GAMES AT ALBERTVILLE SHOULD BE THERE DITTO FOR 20YEAROLD SCOTT DAVIS THE MEN'S SINGLES WINNER AT THESE PROCEEDINGS BUT OTHER THAN THAT THE FIGURES HAVE YET TO BE ADDED UP THE UNCERTAINTY STEMS FROM A RULE PASSED LAST YEAR BY THE INTERNATIONAL SKATING UNION ISU THE SPORT'S WORLD GOVERNING BODY ALLOWING SKATERS WHO HAD TURNED PROFESSIONAL TO SEEK REINSTATEMENT IN TIME FOR '94 SINCE THE ONLY REQUIREMENTS FOR REINSTATEMENT ARE THAT ONE ASKS AND THEN PUTS ONE'S ICE EARNINGS INTO A TRUST FUND FOR THE DURATION THE LIST OF APPLICANTS COULD BE FORMIDABLE INCLUDING BRIAN BOITANO OF THE US THE 1988 OLYMPIC MEN'S SINGLES CHAMP AND KATARINA WITT OF GERMANY THE '84 AND '88 WOMEN'S WINNER BOTH HAVE INDICATED THEY'LL MAKE THE MOVE BEFORE THE APRIL 1 DEADLINE AND THEIR PRESENCE AT THE '94 GAMES IN LILLEHAMMER NORWAY WOULD FURTHER GILD WHAT LONG HAS BEEN THE MAIN EVENT OF THE WINTER OS AS FAR AS AMERICAN TELEVISION RATINGS ARE CONCERNED TV PEOPLE SAY THE FIGS ARE TOPS ON THE TUBE BECAUSE SO MANY WOMEN ENJOY THEM ALTHOUGH UNDOUBTEDLY SOME MEN LIKE THEM TOO MY OWN OBSERVATION IS THAT THERE ARE FEWER DIFFERENCES BETWEEN THE SEXES OVER ENTERTAINMENT PREFERENCES THAN ONE MIGHT THINK FOR INSTANCE THE SOCALLED MEN'S MAGAZINES ARE ALWAYS FULL OF PICTURES OF BEAUTIFUL WOMEN AND THE SOCALLED WOMEN'S MAGAZINES ARE ALWAYS FULL OF PICTURES OF BEAUTIFUL WOMEN AS IS USUAL IN THE SPORT THE WOMEN GOT CENTER STAGE HERE SATURDAY AND THEIR EVENING FINAL WAS THE ONLY ONE ALL WEEK THAT CAME CLOSE TO FILLING THE PURPLESEATED NEW AMERICA WEST ARENA FROM A COMPETITIVE STANDPOINT THOUGH THE MEN'S FINAL IN THE AFTERNOON PROVIDED THE MOST SURPRISES THE TWO MEN'S FAVORITES WERE TODD ELDRIDGE A TWOTIME NATIONAL CHAMP 1990 AND '91 FROM SOUTH CHATHAM MASS AND MARK MITCHELL FROM HAMDEN CONN A BRONZE MEDALIST IN LAST YEAR'S TOURNEY WHO NONETHELESS HAD TO GIVE UP AN OLYMPIC BERTH WHEN ELDRIDGE WHO MISSED THE MEET WITH A BACK INJURY WAS AWARDED THE SPOT BY OFFICIALS BUT BOTH FALTERED IN THE FINAL ALLOWING DAVIS A SOMETIMEU OF COLORADO STUDENT FROM GREAT FALLS MONT TO GRAB THE GOLD THE ANGULAR ELDRIDGE 21 SKATED FIRST AMONG THE TRIO BUT AFTER STARTING WITH A PAIR OF SNAPPY TRIPLESPIN JUMPS FLEW LOW AND LOOKED UNHAPPY ABOUT IT HIS COACH RICHARD CALLAGHAN LATER SAID THE SKATER APPEARED LIFELESS AND WELL MIGHT PONDER LEAVING THE SPORT AFTER A SIXTHPLACE FINISH MITCHELL 24 WAS FIRST AFTER FRIDAY'S SHORT PROGRAM BUT FELL ON HIS OPENING TRIPLE SATURDAY AND TRIED ONLY THREE MORE THEREAFTER SEEMINGLY SATISFIED TO CLAIM SECOND AND ONE OF THE TWO US MEN'S SINGLES SPOTS IN THE WORLD CHAMPIONSHIPS IN PRAGUE ON MARCH 9 TO 14 DAVIS SPUN THROUGH SEVEN TRIPLES EARNING HIMSELF THE MOST APPLAUSE OF THE AFTERNOON AND A BIGGER SHOWER OF BOUQUETS EIGHT AND STUFFED ANIMALS FOUR FROM THE AUDIENCE THAN BOTH HIS MAIN RIVALS COMBINED I SUPPOSE I CAN UNDERSTAND PEOPLE THROWING BOUQUETS AT SKATERS BUT I HAVE NO CLUE ABOUT THE TEDDY BEARS DAVIS'S BEST PREVIOUS NATIONAL SENIOR FINISH WAS A FOURTH AND HE ADMITTED TO SOME SHOCK OVER HIS VICTORY ASKED WHAT ROUTINES HE PLANNED TO WORK ON FOR PRAGUE HE SAID HE DIDN'T KNOW BECAUSE I HADN'T PLANNED ON BEING THERE FIGURESKATING JUDGES TEND TO RATE CONTESTANTS ON THE BASIS OF PAST AS WELL AS PRESENT PERFORMANCE AND BY THAT STANDARD THE TOP OF THE WOMEN'S EVENT WENT ACCORDING TO SCRIPT KERRIGAN OF STONEHAM MASS WAS THE SECONDBEST AMERICAN LAST YEAR BEHIND ONLY OLYMPIC AND WORLD CHAMP KRISTI YAMAGUCHI AND THUS QUALIFIED AS NEXT IN LINE WHEN THAT WORTHY TURNED PRO AND WHILE KERRIGAN'S SHOWING LEFT SOMETHING TO BE DESIRED IT DID EARN HER A DOZEN OR SO BOUQUETS AND FIVE STUFFED ANIMALS MORE IMPORTANT IT WAS MARKEDLY BETTER THAN THAT OF TONYA HARDING GILLOOLY OF PORTLAND ORE HER CLOSEST CHALLENGER BEFORE SATURDAY HARDING GILLOOLY AN ATHLETIC BLONDE WHO SANS THE GILLOOLY JUST MISSED A MEDAL WITH A FOURTHPLACE FINISH IN THE 1992 OLYMPICS AT ALBERTVILLE FELL ON TWO TRIPLEJUMP TRIES AND STUMBLED DURING A THIRD IN SLIPPING FROM SECOND PLACE AFTER FRIDAY'S SHORT PROGRAM TO A FINAL FOURTH NO TICKET TO PRAGUE CAME WITH THAT RESULT ONE OF THE WOMEN WHO WILL MAKE THAT TRIP IS REALLY A GIRL BOUNCY 15YEAROLD LISA ERVIN OF LAKEWOOD OHIO COMPETING IN JUST HER SECOND SENIOR NATIONAL SHE VAULTED FROM FIFTH PLACE AFTER THE SHORT PROGRAM TO SECOND ON THE STRENGTH OF A ROUTINE THAT WHILE LESS AMBITIOUS THAN SOME OTHERS TRIED WAS AT LEAST COMPLETED SMOOTHLY THE THIRD AND LAST PRAGUE PLACE WENT TO TONIA KWIATKOWSKI 21 ALSO OF LAKEWOOD US WOMEN GET THREE WORLDCHAMPIONSHIP BERTHS TO THE MEN'S TWO BECAUSE OF A SUPERIOR FINISH IN LAST YEAR'S EVENT AFTER THEIR PERFORMANCES THE SINGLES MEDALISTS NONPROS ALL WERE QUERIED ABOUT THEIR REACTIONS TO THE ISU'S REINSTATEMENT RULE WITH THE EXCEPTION OF MITCHELL WHO SAID IN EFFECT THAT THE PROS HAD THEIR TURN AND NOW HE WANTED HIS ALL TOOK THE DIPLOMATIC APPROACH THAT THE ADDED COMPETITION WOULD MAKE THEM WORK HARDER BUT WHEN DAVIS WAS ASKED DIRECTLY WHAT HE THOUGHT OF MITCHELL'S VIEW HE SAID I AGREE HEY WITH A CHANGE OF DIRECTION LIKE THAT IT'S NO WONDER HE WON 9301250176 930125 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CHESAPEAKE & POTOMAC TELEPHONE CO 90 MILLION OF DEBENTURES DUE FEB 1 2023 PRICED AS 7 3/4 AT 99274 TO YIELD 7813 THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 050 POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH FIRST BOSTON CORP C&P TELEPHONE BASED IN WASHINGTON IS A UNIT OF BELL ATLANTIC CORP KMART CORP 300 MILLION OF DEBENTURES DUE FEB 1 2023 PRICED AS 795 AT 99456 TO YIELD 7998 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 070 POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO KAISER ALUMINUM & CHEMICAL CORP 400 MILLION OF SENIOR SUBORDINATED NOTES DUE FEB 1 2003 PRICED AT PAR TO YIELD 1275 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KAISER ALUMINUM & CHEMICAL IS A SUBSIDIARY OF KAISER ALUMINUM CORP MUNICIPAL PARTNERS FUND INC INITIAL OFFERING OF FIVE MILLION SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO VAN KAMPEN MERRITT STRATEGIC SECTOR MUNICIPAL TRUST INITIAL OFFERING OF 95 MILLION SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PAINEWEBBER INC RESOLUTION TRUST CORP 960 MILLION OF COMMERCIAL MORTGAGEBACKED SECURITIES PRICED IN EIGHT PARTS WITH SIX CLASSES OFFERED TO THE PUBLIC THE RTC RETAINED TWO SUBORDINATE CLASSES THE 165 MILLION OF A1A SENIOR CERTIFICATES WERE PRICED AS 660 AT 100 10/32 TO YIELD A SPREAD OF 185 POINTS OVER THE TREASURY CURVE THE CERTIFICATES HAVE A 25YEAR AVERAGE LIFE THE 81 MILLION OF A1B SENIOR CERTIFICATES WERE PRICED AS 775 AT 100 22/32 TO YIELD A SPREAD OF 175 POINTS OVER TREASURYS THE CERTIFICATES HAVE A 57YEAR AVERAGE LIFE THE 347 MILLION OF A2 SENIOR CERTIFICATES WERE PRICED AT PAR TO FLOAT 110 POINTS OVER THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES HAVE A 54YEAR AVERAGE LIFE THE 100 MILLION OF A3 SENIOR CERTIFICATES WERE PRICED AT 101 1/32 TO FLOAT 095 POINT ABOVE THE ONEMONTH LIBOR THE CERTIFICATES HAVE A 42YEAR AVERAGE LIFE THE FOUR CLASSES OF SENIOR CERTIFICATES WERE RATED TRIPLEA BY MOODY'S AND DUFF & PHELPS CO THE 57 MILLION OF CLASS B SUBORDINATE CERTIFICATES WERE PRICED AS 875 AT 100 10/32 TO YIELD A SPREAD OF 232 POINTS OVER TREASURYS THE CERTIFICATES HAVE A 92YEAR AVERAGE LIFE THE CERTIFICATES WERE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY DUFF & PHELPS THE 86 MILLION OF C SUBORDINATE CERTIFICATES WERE PRICED AS 940 AT 100 2/32 TO YIELD A SPREAD OF 325 POINTS OVER TREASURYS THE CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA BY DUFF HAVE A 72YEAR AVERAGE LIFE THE 67 MILLION OF D CERTIFICATES HAVE A COUPON OF 945 AND 57 MILLION OF E CERTIFICATES HAVE A COUPON OF 945 BOTH WERE RETAINED BY THE RTC PRICING DETAILS WERE NOT AVAILABLE THE D CERTIFICATES WERE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY DUFF & PHELPS THE E CERTIFICATES WERE RATED BA2 BY MOODY'S AND DOUBLEB BY DUFF & PHELPS FORD MOTOR CO 143 BILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES DUE JAN 15 1998 PRICED AS 485 AT 999523 TO YIELD 493 PRICING OF THE CERTIFICATES WHICH HAVE A 168YEAR AVERAGE LIFE WAS AT A SPREAD OF 060 POINT ABOVE THE WHENISSUED TWOYEAR TREASURY NOTE THE ISSUE IS CALLED FORD CREDIT TRUST 1993A RATED TRIPLEA BY MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE DEAL ALSO CONTAINS AN 8 SUBORDINATE CLASS THAT WILL NOT BE OFFERED IN THE PUBLIC MARKETS AB ELECTROLUX SWEDEN 200 MILLION OF EUROBONDS DUE JAN 29 1998 WITH A COUPON OF 7 AND AT AN ISSUE PRICE OF 10148 VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 9998 TO YIELD 7 A SPREAD OF 106 POINTS ABOVE THE TREASURY'S NEW FIVEYEAR NOTE FEES 3/8 CREDIOP OVERSEAS BANK ITALIAN PARENT 150 MILLION OF FLOATINGRATE NOTES DUE FEB 22 1998 AT AN ISSUE PRICE OF PAR VIA MORGAN STANLEY INTERNATIONAL COUPON TO FLOAT AT A MARGIN OF 01875 POINT ABOVE THE THREEMONTH LIBOR THE NOTES CAN BE PUT AND CALLED AT EACH COUPON DATE AFTER 18 MONTHS AT PAR WITH 30 DAYS' NOTICE FEES UNDISCLOSED ZLBBANK AUSTRIA AUSTRIA 100 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE FEBRUARY 2003 AT ISSUE AND FIXED REOFFER PRICE OF PAR VIA MORGAN STANLEY INTERNATIONAL RATE AT SIXMONTH LIBOR MINUS 1/8 POINT FEES 1/2 CREDIT LYONNAIS FRANCE ONE BILLION FRENCH FRANCS OF 8 3/8 EUROBONDS DUE FEB 24 2003 AT A REOFFER PRICE OF 9918 VIA CREDIT LYONNAIS SECURITIES LTD YIELD 850 A SPREAD OF 068 POINT ABOVE THE COMPARABLE FRENCH GOVERNMENT OAT ISSUE FEES 035 CREDIT LOCAL DE FRANCE FRANCE 300 MILLION FRENCH FRANCS OF REVERSE FLOATINGRATE NOTES DUE APRIL 1 2003 AT AN ISSUE PRICE OF 101 1/2 VIA CREDIT LYONNAIS COUPON 11 ANNUAL FOR THE FIRST YEAR THEREAFTER IT WILL BE EQUAL TO 14 3/4 MINUS THE SIXMONTH PARIS INTERBANK OFFERED RATE FEES 2 EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 BILLION LIRE OF 1220 EUROBONDS DUE FEB 18 2003 AT AN ISSUE PRICE OF 10170 TO YIELD 1223 ANNUALLY EXCLUDING FEES VIA ISTITUTO BANCARIO SAN PAOLO DI TURINO FEES 1 7/8 9301250175 930125 CANADIAN RETAIL SALES RISE OTTAWA CANADIAN RETAIL SALES ROSE 05 IN NOVEMBER TO A SEASONALLY ADJUSTED 1562 BILLION CANADIAN DOLLARS US1216 BILLION FROM C1554 BILLION IN OCTOBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE NOVEMBER GAIN WAS LED BY AUTO DEALERS WHICH HAD A 16 INCREASE IN SALES FROM OCTOBER STATISTICS CANADA SAID THE RETAIL SALES TREND HAS BEEN RISING SINCE LAST MARCH 9301250174 930125 BUSINESS BRIEF PHARMOR'S ESTIMATE OF TOTAL IN FRAUD CASE GROWS BY 149 MILLION YOUNGSTOWN OHIO PHARMOR INC BOOSTED BY 149 MILLION ITS ESTIMATE OF THE COST OF FRAUD THE COMPANY SAYS WAS COMMITTED BY FORMER TOP EXECUTIVES IN A RELATED MOVE THE CLOSELY HELD DEEPDISCOUNT CHAIN TOOK AN ADDITIONAL 311 MILLION IN CHARGES RELATING TO STORE CLOSINGS PROFESSIONAL FEES AND CHANGES IN ACCOUNTING POLICIES ON VALUING ITS ASSETS A SPOKESWOMAN SAID THE INITIAL 350 MILLION FRAUD PRICETAG WAS REPORTED SOON AFTER THE COMPANY IN AUGUST DISCLOSED FINANCIAL IRREGULARITIES ONGOING INVESTIGATIONS UNCOVERED ADDITIONAL ALLEGED WRONGDOINGS INVOLVING THE VALUE OF INVENTORIES AND THE VALIDITY OF ACCOUNTS RECEIVABLE THE ALLEGED FRAUD SHE SAID WAS COMPLEX AND REACHED INTO MANY AREAS OF THE COMPANY'S RECORDKEEPING FRAUD INVESTIGATIONS PROMPTED THE FIRING LAST SUMMER OF MICHAEL I MONUS THE COMPANY'S COFOUNDER PRESIDENT AND CHIEF OPERATING OFFICER AND PATRICK FINN CHIEF FINANCIAL OFFICER INVESTIGATIONS BY THE US ATTORNEY'S OFFICE IN CLEVELAND AND THE FEDERAL BUREAU OF INVESTIGATION ARE CONTINUING AND HAVEN'T YET RESULTED IN CRIMINAL CHARGES AGAINST MESSRS MONUS FINN AND TWO OTHER FORMER EXECUTIVES WHO WERE ALSO FIRED MR FINN HAS BEEN COOPERATING WITH AUTHORITIES FOR MONTHS ACCORDING TO HIS ATTORNEY PHARMOR WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN AUGUST SAID ITS CASH POSITION ON JAN 20 STOOD AT MORE THAN 217 MILLION AND THAT IT HASN'T DRAWN ON A 150 MILLION CREDIT FACILITY ARRANGED IN OCTOBER IT SAID IT HAS RECEIVED STRONG TRADE SUPPORT WITH MOST SUPPLIERS SHIPPING ON NORMAL TRADE TERMS THE 311 MILLION IN CHARGES ANNOUNCED FRIDAY INCLUDED 209 MILLION RELATED TO LIABILITIES FROM CLOSING STORES AND 102 MILLION FROM ACCOUNTING POLICIES PHARMOR CLOSED 54 STORES LEAVING THE CHAIN WITH 255 STORES IN 29 STATES 9301250173 930125 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ACT III THEATERS INC 85 MILLION OF SENIOR SUBORDINATED NOTES VIA KIDDER PEABODY & CO AMERICAN RE CORP INITIAL 10750000 COMMON SHARES VIA MERRILL LYNCH & CO BIOSURFACE TECHNOLOGY INC INITIAL TWO MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC CALGENE INC TWO MILLION COMMON SHARES VIA PAINEWEBBER INC CELL GENESYS INC INITIAL THREE MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO COCENSYS INC INITIAL 25 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES DELL COMPUTER CORP FOUR MILLION COMMON SHARES VIA GOLDMAN SACHS & CO DF&R RESTAURANTS INC INITIAL 19 MILLION COMMON SHARES VIA DEAN WITTER REYNOLDS INC DR PEPPER/SEVENUP COS INITIAL 205 MILLION COMMON SHARES VIA MORGAN STANLEY & CO GENESIS HEALTH VENTURES INC 29 MILLION COMMON SHARES VIA MERRILL LYNCH GENETIC THERAPY INC TWO MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO KAISER STEEL RESOURCES INC TWO MILLION COMMON SHARES VIA SALOMON BROTHERS INC KOHL'S CORP 4250000 COMMON SHARES VIA MORGAN STANLEY LINCOLN NATIONAL CORP FOUR MILLION COMMON SHARES VIA GOLDMAN SACHS MAGAININ PHARMACEUTICALS INC 35 MILLION COMMON SHARES VIA HAMBRECHT & QUIST MATHSOFT INC INITIAL 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC MOLECULAR DYNAMICS INC INITIAL 21 MILLION COMMON SHARES VIA HAMBRECHT & QUIST PUBLIC SERVICE ELECTRIC & GAS CO 250 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS VIA COMPETITIVE BID RHONEPOULENC SA FOUR MILLION AMERICAN DEPOSITARY SHARES VIA MORGAN STANLEY TELIOS PHARMACEUTICALS INC FOUR MILLION COMMON SHARES VIA HAMBRECHT & QUIST TEJAS POWER CO FIVE MILLION CLASS A COMMON SHARES VIA DILLON READ & CO TRIPLEX PHARMACEUTICAL CORP INITIAL THREE MILLION COMMON SHARES VIA FIRST BOSTON CORP US ROBOTICS INC 25 MILLION COMMON SHARES VIA HAMBRECHT & QUIST UNIVAX BIOLOGICS INC 25 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC WELLPOINT HEALTH NETWORKS INC INITIAL 15 MILLION COMMON SHARES VIA MERRILL LYNCH WESTERN DIGITAL CORP FIVE MILLION SHARES VIA FIRST BOSTON ANCHORAGE ALASKA'S MUNICIPAL LIGHT & POWER 68760000 OF 1993 SENIOR LIEN REFUNDING ELECTRIC REVENUE BONDS VIA GOLDMAN SACHS DULUTH MINNESOTA'S ECONOMIC DEVELOPMENT AUTHORITY 1108 MILLION OF 1993 SERIES AG HEALTH CARE FACILITIES REVENUE BONDS BENEDICTINE HEALTH SYSTEM OBLIGATED GROUP VIA A ZIEGLER SECURITIES GROUP PENNSYLVANIA FINANCE AUTHORITY 21083500 OF MUNICIPAL CAPITAL IMPROVEMENT REVENUE BONDS VIA A COMMONWEALTH SECURITIES AND INVESTMENTS INC GROUP LOS ANGELES COUNTY CALIF 115 MILLION OF CERTIFICATES OF PARTICIPATION BONDS WALT DISNEY CONCERT HALL PARKING VIA A FIRST BOSTON GROUP LOUISIANA CORRECTIONAL FACILITIES CORP 150 MILLION OF SERIAL 1993 LEASE REVENUE REFUNDING BONDS VIA A PRUDENTIAL SECURITIES GROUP NEBRASKA PUBLIC POWER DISTRICT 3427 MILLION OF POWER SUPPLY REVENUE BONDS VIA A FIRST BOSTON GROUP PITTSBURGH 95560000 OF 1993 SERIES A GENERAL OBLIGATION REFUNDING BONDS VIA A LAZARD FRERES & CO GROUP SNOHOMISH COUNTY WASHINGTON PUBLIC UTILITY DISTRICT NO1 405190000 OF GENERATIONS SYSTEM REVENUE BONDS VIA A SMITH BARNEY GROUP CONNECTICUT HOUSING FINANCE AUTHORITY 76 MILLION OF REVENUE BONDS VIA A FIRST BOSTON GROUP NORTH CAROLINA MEDICAL CARE 68157000 OF REVENUE BONDS REX HOSPITAL PROJECT VIA FIRST BOSTON NEW YORK STATE MORTGAGE AGENCY 150 MILLION OF TAXABLE HOUSING REVENUE BONDS VIA A BEAR STEARNS & CO 9301250172 930125 LAW LEGAL BEAT BUILDINGS BAR DOORS TO CABLE'S BIG OPERATORS BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL EDWARD ROSE & SONS IS CREATING HUGE LEGAL HEADACHES FOR BIG CABLETV OPERATORS THE REALESTATE DEVELOPER ISN'T LETTING THEM INTO ITS BUILDINGS INSTEAD IN FIVE MIDWESTERN STATES AND VIRGINIA ROSE PROPERTIES ARE BEING EQUIPPED WITH SATELLITE DISHES OR ANTENNAS TO SIDESTEP THE CABLE COMPANIES ALTOGETHER AND KEEP A LARGE PORTION OF THE REVENUES FOR ROSE THE KALAMAZOO MICHBASED DEVELOPER IS HARDLY ALONE THROUGHOUT THE COUNTRY OWNERS OF APARTMENT AND CONDOMINIUM BUILDINGS ARE ENRAGING THE CABLE INDUSTRY BY BARRING THEIR DOORS AND EITHER CUTTING DEALS WITH SMALLER OPERATORS OR HANDLING THE INHOUSE TV SYSTEMS THEMSELVES AND MORE AND MORE FREQUENTLY THE DISPUTE OVER THIS LUCRATIVE MARKET IS ENDING UP IN COURT THE LEGAL QUESTION IS STRAIGHTFORWARD DO THE BIG OPERATORS HAVE A RIGHT AS A QUASIPUBLIC UTILITY TO GAIN ENTRY TO STRING CABLE FOR APARTMENT DWELLERS SOME COURTS SAY YES OTHERS DISAGREE IN MANY CASES STATE LEGISLATURES ARE STEPPING IN TO SET CLEAR RULES FOR THE BIG CABLE OPERATORS HOW THE FIGHT RESOLVES ITSELF IS CRUCIAL TO THE CABLE INDUSTRY WHICH SEES THE LARGE RESIDENTIAL COMPLEXES AS ITS LAST FRONTIER NOW THAT MOST OF THE TRADITIONAL SINGLEFAMILY MARKET HAS BEEN SATURATED MOREOVER ONE HOOKUP TO A HIGHRISE APARTMENT BUILDING GIVES A CABLE OPERATOR ACCESS TO A HOST OF POTENTIAL CUSTOMERS MAKING THE MARKET EVEN MORE ATTRACTIVE CAPTURING THE MULTIUNIT RESIDENTIAL MARKET IS CRITICAL FOR THE FUTURE GROWTH OF FRANCHISED CABLE SYSTEMS SAYS TERRY S BIENSTOCK WHO REPRESENTS THE BIG OPERATORS GRANTED EXCLUSIVE FRANCHISES TO SERVE A COMMUNITY THE PARTNER AT THE MIAMI LAW FIRM OF BIENSTOCK & CLARK SAYS 25 MILLION TO 30 MILLION PEOPLE LIVE IN THE 100000 MULTIUNIT DEVELOPMENTS THAT THE INDUSTRY HAS ITS EYE ON AND ABOUT 5000 NEW DEVELOPMENTS ARE ADDED EACH YEAR THE COURT BATTLE IS JUST AS IMPORTANT TO THE SMALLER COMPETITORS WHO WOULD BE SQUEEZED OUT IF THE LARGER COMPANIES SUCCEED IF THE FRANCHISE OPERATORS WIN THEY WOULD ESSENTIALLY DRIVE US OUT OF BUSINESS SAYS ROBERT R SWANDER CHAIRMAN OF THE NATIONAL PRIVATE CABLE ASSOCIATION AND PRESIDENT OF TELEMEDIA ASSOCIATES IN BETHESDA MD ONE OF THE SMALL CABLE OPERATORS THE MAJOR CABLE COMPANIES SUCH AS TELECOMMUNICATIONS INC COMCAST CORP CONTINENTAL CABLEVISION INC AND ADELPHIA COMMUNICATIONS ARGUE THAT STATE AND FEDERAL CABLE LAWS GIVE THEM MANDATORY ACCESS TO INSTALL CABLE ON PRIVATE PROPERTY DESPITE A BUILDING OWNER'S OBJECTIONS THEY ALSO SAY MANDATORY ACCESS IS NECESSARY IF THEY ARE TO FULFILL THEIR DUTIES AS A PUBLIC FRANCHISE OBLIGATED TO OFFER CABLE SERVICE TO ALL RESIDENTS THE MAJOR COMPANIES SAY THAT IF THEY AREN'T GRANTED MANDATORY ACCESS TO THE BUILDINGS LANDLORDS COULD PREVENT TENANTS FROM GETTING THE BEST AND CHEAPEST CABLETV SERVICE OR ANY CABLE SERVICE THE LARGE COMPANIES SAY THEY ALSO OFFER MORE CHANNELS INCLUDING PUBLIC AFFAIRS AND EDUCATION PROGRAMS THAN THEIR UPSTART RIVALS THE SMALL COMPETITORS AND MANY BUILDING OWNERS ARGUE THAT THE FRANCHISE OPERATORS ARE OVERSTATING THE SCOPE OF THEIR RIGHTS UNDER CABLE REGULATIONS FRANCHISE CABLE OPERATORS TRY TO WRAP THEMSELVES UP IN THE FLAG BUT PROPERTY OWNERS AND NONFRANCHISE OPERATORS CAN PROVIDE EXACTLY THE SAME PROGRAMMING USUALLY AT CHEAPER RATES SAYS DEBORAH COSTLOW A PARTNER WITH THE WASHINGTON LAW FIRM WINSTON & STRAWN WHICH REPRESENTS PROPERTY OWNERS AND THE SMALLER COMPETITORS MS COSTLOW SAYS FEDERAL CABLE LAW DOESN'T GIVE THE FRANCHISE OPERATORS UNLIMITED ACCESS TO OTHERS' PROPERTIES SO FAR FEDERAL APPEALS COURTS IN ATLANTA AND PHILADELPHIA HAVE AGREED WITH THE PROPERTY OWNERS SIMILAR CASES ARE PENDING IN FEDERAL APPEALS COURTS IN RICHMOND VA AND ST LOUIS FRANCHISE OPERATORS HAVE HAD MORE SUCCESS ON THE LOCAL LEVEL WHERE 14 STATES AND WASHINGTON DC HAVE PASSED LAWS THAT ENABLE MUNICIPALITIES TO REQUIRE PROPERTY OWNERS TO HAVE THEIR BUILDINGS WIRED BY FRANCHISE OPERATORS UPHOLDING A NEW YORK LAW THE US SUPREME COURT HAS RULED THAT SUCH LAWS ARE VALID IF THEY PROVIDE FOR JUST COMPENSATION FOR THE PROPERTY OWNER BUT THE SUPREME COURT DIDN'T ADDRESS HOW MUCH COMPENSATION WOULD BE FAIR OR THE LEGAL PROCESS FOR MANDATING ACCESS TO THE BUILDINGS THOSE CONCERNS HAVE BEEN THE FOCUS OF SUBSEQUENT LOWERCOURT RULINGS ON CITIES' MANDATORY ACCESS LAWS JOHN MANSELL A CABLE INDUSTRY ANALYST WITH PAUL KAGAN ASSOCIATES INC SAYS NEW TECHNOLOGY MIGHT PROVIDE A PARTIAL SOLUTION TO THE DISPUTE HE SAYS DEVICES ARE AVAILABLE THAT ALLOW RESIDENTS OF SOME MULTIUNIT DEVELOPMENTS TO CHOOSE AMONG DIFFERENT CABLE SYSTEMS BUT THE DEVICES WOULDN'T BE SUITABLE FOR ALL DEVELOPMENTS MR MANSELL SAID AND EVEN IF ADOPTED WOULDN'T ADDRESS ALL OF THE LEGAL ISSUES RAISED BY PROPERTY OWNERS THE LEGAL DEBATE HAS GONE ON NOW FOR A DECADE MR MANSELL SAYS IT'S GOING TO CONTINUE FOR THE FORESEEABLE FUTURE A MAN WHO SAYS HIS HEART VALVE IS TOO NOISY CAN SUE ITS MANUFACTURER A FEDERAL APPEALS COURT RULED THE DECISION REINSTATES A PENNSYLVANIA RETIREE'S CASE AGAINST BAXTER HEALTHCARE CORP A UNIT OF BAXTER INTERNATIONAL A LOWER COURT HAD DISMISSED THE SUIT ON THE GROUNDS THAT THE HEART VALVE WAS STILL TICKING AFTER FIVE YEARS AND THAT THE NOISE IT MADE WAS AN INEVITABLE SIDE EFFECT THE SECOND US CIRCUIT COURT OF APPEALS AGREED WITH THE LOWER COURT THAT THERE WAS NO DESIGN DEFECT IN THE EDWARDSDUROMEDICS HEART VALVE MADE BY BAXTER BUT IT RULED THAT THE CASE SHOULD PROCEED ON WHETHER BAXTER SHOULD HAVE WARNED THE RETIREE AARON BRAVMAN ABOUT THE LEVEL OF NOISE MR BRAVMAN MAINTAINS BAXTER HAD A DUTY TO WARN HIM ABOUT THE NOISE WHICH BAXTER SAYS IS NECESSARY AS A WAY FOR DOCTORS TO MAKE SURE THE VALVE IS STILL WORKING ESPECIALLY SINCE THERE ARE OTHER VALVES ON THE MARKET THAT MIGHT BE QUIETER MR BRAVMAN'S ATTORNEY JOSHUA PAUL OF NEW YORK'S COWAN LIEBOWITZ & LATMAN SAYS THE HEART VALVE SOUNDS LIKE CHANGE JINGLING IN A POCKET IN A QUIET ENVIRONMENT IT CAN BE HEARD AT A DISTANCE OF 30 FEET THE SECOND CIRCUIT DIDN'T ADDRESS WHETHER THE CASE IS PREEMPTED BY THE FEDERAL REGULATORY PROCESS THAT THE VALVE WENT THROUGH BEFORE IT WAS APPROVED FOR MARKETING THE FEDERAL APPEALS COURT IN BOSTON RECENTLY RULED THAT CERTAIN MEDICAL DEVICES APPROVED BY REGULATORS ARE EXEMPT FROM MANY CLAIMS FOR DAMAGES BAXTER OF DEERFIELD ILL TOOK THE EDWARDSDUROMEDICS VALVE OFF THE US MARKET IN 1988 FOLLOWING UNRELATED LITIGATION AND QUESTIONS ABOUT ITS SAFETY A SPOKESMAN FOR BAXTER SAID THE COMPANY DOESN'T BELIEVE MR BRAVMAN'S CASE HAS ANY MERIT AND IS CONSIDERING AN APPEAL BRAVMAN VS BAXTER HEALTHCARE SECOND US CIRCUIT COURT OF APPEALS NEW YORK 927645 A LUXEMBOURG APEALS COURT UPHELD TWO MONEYLAUNDERING CONVICTIONS BUT SAID THE MONEY INVOLVED CAN'T BE CONFISCATED THE COURT SAID THE 36 MILLION IN ALLEGED DRUG PROFITS COULDN'T BE CONFISCATED BECAUSE IT DIDN'T BELONG TO THE COLOMBIANS WHO WERE CONVICTED OF LAUNDERING IT IT SAID THE MONEY WHICH HAS BEEN FROZEN FOR TWO YEARS IN 33 BANKS ACROSS EUROPE MUST BE RETURNED TO THE FAMILY OF THE LATE HERIBERTO CASTRO MEZA HIS NAME WAS ON THE ACCOUNTS ADMINISTERED BY THE TWO MEN WHO WERE CONVICTED IN OUR OPINION THE MONEY CAME FROM DRUG TRAFFICKING IN THE US SAID PROSECUTOR NICO EDON SO IT DIDN'T REALLY BELONG TO THE CASTRO MEZA FAMILY THE PROSECUTOR SAID NO DECISION HAS BEEN MADE ON WHETHER TO APPEAL THE RULING TO LUXEMBOURG'S SUPREME COURT THE CASTRO MEZA HEIRS SAY THE MONEY CAME FROM LEGITIMATE BUSINESSES INCLUDING CATTLE AND SUGARCANE FARMING THE FAMILY'S CLAIM IS DISPUTED BY US DRUG ENFORCEMENT AGENCY OFFICIALS WHO TESTIFIED THAT THE MONEY WAS DRUG PROFITS OF THE NOTORIOUS CALI COCAINE CARTEL IN COLOMBIA JUDGE MARIETHERESE KILLMULLER OF THE LUXEMBOURG COURT OF APPEALS SAID THE ONLY MONEY THAT COULD BE CONFISCATED WAS ABOUT 30000 ALLEGED TO BE ONE OF THE CONVICTED DEFENDANT'S EARNINGS FOR HIS MONEYLAUNDERING ACTIVITIES THE JUDGE'S RULING WAS BASED ON A 1989 LUXEMBOURG MONEYLAUNDERING LAW THAT WAS IN EFFECT WHEN THE COLOMBIANS WERE ARRESTED IN 1990 LUXEMBOURG CHANGED ITS LAW LAST YEAR TO ALLOW THE CONFISCATION OF LAUNDERED MONEY EVEN IF IT DOESN'T BELONG TO THE PERSON CHARGED BCCI REPRIEVE THE NEW YORK TRIAL OF ROBERT ALTMAN AND CLARK CLIFFORD ACCUSED OF ILLEGAL ACTIVITIES IN CONNECTION WITH BANK OF CREDIT & COMMERCE INTERNATIONAL SA HAS BEEN DELAYED FOR A MONTH UNTIL MARCH 15 MR ALTMAN'S ATTORNEY GUSTAVE NEWMAN SAID HE NEEDED MORE TIME TO PREPARE FOR THE CASE AMONG OTHER THINGS MR NEWMAN CITED THE WITHDRAWAL FROM THE CASE BY SKADDEN ARPS SLATE MEAGHER & FLOM THE LAW FIRM INITIALLY REPRESENTING MR ALTMAN AND MR CLIFFORD SKADDEN IS OWED MORE THAN 2 MILLION FOR LEGAL BILLS THAT MR CLIFFORD SAYS HE CAN'T PAY BECAUSE OF A FREEZE ON HIS ASSETS THE BANK IS A UNIT OF BCCI HOLDINGS LUXEMBOURG SA DOING GOOD LAW STUDENTS AT 52 SCHOOLS WILL DONATE TIME SATURDAY TO COMMUNITY GROUPS IN ACTIVITIES RANGING FROM DISCUSSING THE LEGAL SYSTEM WITH CHILDREN TO HELPING THE ELDERLY FILL OUT TAX RETURNS THE WORK A DAY PROGRAM WAS INITIATED AT THE UNIVERSITY OF ILLINOIS AT URBANACHAMPAIGN JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE