LONDON THE BRITISH GOVERNMENT UNVEILED DRAFT LEGISLATION THAT SET THE STAGE FOR ITS MOST COMPLEX PRIVATIZATION ENDEAVOR YET THE SALE OF BRITISH RAIL THE NATION'S STATEOWNED RAIL NETWORK AS A FIRST STEP 23500 MILES OF TRACK ARE TO BE TRANSFERRED TO A NEW ORGANIZATION CALLED RAILTRACK INITIALLY UNDER STATE OWNERSHIP AND PRIVATE ENTREPRENEURS WILL BE INVITED TO RUN SOME OF BRITISH RAIL'S 15000 PASSENGER AND FREIGHT SERVICES AND OPERATE SOME OF ITS 2500 STATIONS FIRST AS FRANCHISEES AND LATER PERHAPS AS OWNERS THE PROPOSALS ALREADY HAVE SET OFF AN INTENSE POLITICAL DEBATE EVEN IF THEY ULTIMATELY WIN PARLIAMENTARY APPROVAL THE PROCESS OF PUTTING THEM INTO ACTION WON'T BEGIN FOR SEVERAL MONTHS AND THEY ARE LIKELY TO TAKE YEARS TO COMPLETE BUT THE ULTIMATE GOAL OFFICIALS SAY IS THE COMPLETE PRIVATIZATION OF BRITAIN'S RAILWAYS BY INJECTING PRIVATE INITIATIVE AND FINANCE INTO BRITISH RAIL TRANSPORT SECRETARY JOHN MACGREGOR TOLD A NEWS CONFERENCE ON FRIDAY THE GOVERNMENT AIMS TO ENSURE BETTER SERVICE FOR THE TRAVELER AND FOR FREIGHT AND BETTER VALUE FOR MONEY FOR THE TAXPAYER COMPETITION FOR CUSTOMERS HE SAID WILL IMPROVE EFFICIENCY AND REDUCE COSTS THE ALTERNATIVE HE SAID WOULD BE A CONTINUING SLOW DECLINE IN THE NATION'S RAIL SERVICE IN SUPPORT OF ITS THESIS THE BRITISH GOVERNMENT CAN SHOW AN IMPRESSIVE RECORD OF SUCCESSES SINCE FORMER PRIME MINISTER MARGARET THATCHER LAUNCHED THE PRIVATIZATION PROCESS IN THE EARLY 1980S SEVERAL SLEEPY STATE MONOPOLIES HAVE BEEN TURNED INTO DYNAMIC PRIVATE COMPANIES BRITISH TELECOMMUNICATIONS PLC WAS ONE OF THE FIRST FOLLOWED BY BRITISH GAS BRITISH AIRWAYS BRITISH STEEL AND A HOST OF OTHERS IN SECTORS RANGING FROM WATER TO AIRPORT ADMINISTRATION BUT IN BACKING RAIL PRIVATIZATION PRIME MINISTER JOHN MAJOR IS TAKING ON A DIFFICULT CHALLENGE THAT'S BECAUSE IN ADDITION TO BEING A COMMERCIAL CONCERN BRITISH RAIL IS A PUBLIC SERVICE AND A DEFICITPRODUCING COLOSSUS WITH LITTLE PROSPECT OF MAKING A PROFIT ANY TIME SOON THE BIG DIFFERENCE FROM PREVIOUS PRIVATIZATIONS SAYS A BANKER INVOLVED IN THE BRITISH RAIL PROJECT IS THAT THIS BUSINESS IS FUNDAMENTALLY UNVIABLE EXCEPT WITH CONTINUING SUBSIDY THIS COMES FIRMLY IN THE CATEGORY OF ONE OF THE MOST DIFFICULT PRIVATIZATIONS TO DATE IN THE FINANCIAL YEAR THAT ENDED MARCH 31 BRITISH RAIL REPORTED A PRETAX LOSS OF 1447 MILLION 220 MILLION WIDENED FROM A LOSS OF 109 MILLION THE PREVIOUS YEAR EVEN THIS WAS ACHIEVED ONLY AFTER A GRANT FROM THE CENTRAL GOVERNMENT OF 892 MILLION UP FROM 602 MILLION THE PREVIOUS YEAR ANOTHER HEAVY DEFICIT IS EXPECTED THIS YEAR SUCH LOSSES MAKE BRITISH RAIL HIGHLY VULNERABLE TO POTENTIAL CUTBACKS OF THE SORT THAT HAVE CHARACTERIZED OTHER SUCCESSFUL PRIVATIZATIONS THOUGH THE GOVERNMENT HAS PLEDGED TO CONTINUE SUBSIDIES TO FINANCE INFRASTRUCTURE INVESTMENT AND TO KEEP UNPROFITABLE LINES OPEN FEARS THAT CUTBACKS COULD BECOME A REALITY HAVE BROUGHT WIDESPREAD PROTESTS LABOR LEADERS ENVIRONMENTALISTS RAIL USERS AND EVEN SOME CONSERVATIVE POLITICIANS HAVE ACCUSED THE GOVERNMENT OF PAVING THE WAY FOR POORER SERVICES HIGHER PRICES AND LARGESCALE JOB LOSSES AMONG BRITISH RAIL'S 130000 WORK FORCE NOT EVERYONE SHARES THAT VIEW OF COURSE SOME PEOPLE THINK A PRIVATIZED RAIL SYSTEM COULD HARDLY BE WORSE THAN THE PRESENT NATIONALIZED ONE A FEW EVEN SUPPORT THE GOVERNMENT IN HOPING THAT IT MIGHT EVEN BE BETTER A NUMBER OF INDEPENDENT ENTREPRENEURS INCLUDING SOME BUS COMPANIES ALREADY HAVE SHOWN INTEREST IN SETTING UP RAIL SERVICES ONE PROMINENT CANDIDATE RICHARD BRANSON OWNER OF VIRGIN ATLANTIC AIRWAYS HAS SAID HE WANTS TO LAUNCH A FAST ONE OR TWOSTOP SERVICE BETWEEN LONDON AND EDINBURGH SCOTLAND TO COMPETE WITH AIR SERVICES 9301250170 930111 STUDY FINDS WOMEN ON THE NIGHT SHIFT ARE MORE LIKELY TO SUFFER MISCARRIAGES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL WOMEN REGULARLY WORKING AN EVENING OR A NIGHT SHIFT WHILE PREGNANT ARE MORE LIKELY TO HAVE A MISCARRIAGE THAN WOMEN WHO WORK THE DAY SHIFT CANADIAN RESEARCHERS SAID THE CANADIAN FINDING SHOULD BE TAKEN INTO ACCOUNT BY PHYSICIANS WHEN THEY MAKE RECOMMENDATIONS ON WORKING CONDITIONS FOR PREGNANT WOMEN A US OCCUPATIONAL HEALTH EXPERT SAID THE CANADIAN RESEARCHERS SAID THEY LOOKED INTO THE WORK SCHEDULES OF 331 WOMEN WHO ENTERED SAINTJUSTINE HOSPITAL IN MONTREAL BECAUSE OF MISCARRIAGES THEY COMPARED THESE WOMEN'S WORK SCHEDULES WITH THE WORK SCHEDULES OF NEARLY 1000 PREGNANT WOMEN WHO CAME TO THE HOSPITAL FOR ROUTINE BLOOD TESTS THE HIGHEST RISK OF A MISCARRIAGE HAUNTED THOSE WOMEN WHO REGULARLY WORKED A FIXED EVENING SHIFT RUNNING FROM 3 PM OR 4 PM TO 11 PM OR MIDNIGHT THEY FOUND THESE EVENINGSHIFT WORKERS WERE MORE THAN FOUR TIMES AS LIKELY TO SUFFER A MISCARRIAGE AS WOMEN WHO REGULARLY WORKED A FIXED DAY SHIFT WOMEN WHO REGULARLY WORKED A FIXED NIGHT SHIFT BEGINNING AT 11 PM OR MIDNIGHT HAD A RISK OF MISCARRIAGE MORE THAN 25 TIMES HIGHER THAN DAYSHIFT WORKERS ACCORDING TO THE REPORT BY CLAIRE INFANTERIVARD AND HER COLLEAGUES AT THE MCGILL UNIVERSITY SCHOOL OF OCCUPATIONAL HEALTH AND AT THE UNIVERSITY OF MONTREAL THEIR REPORT WAS PUBLISHED IN THE AMERICAN JOURNAL OF EPIDEMIOLOGY THE EVENING AND NIGHTSHIFT WORKERS ALSO HAD A TWO TO FOUR TIMES HIGHER RISK OF HAVING A MISCARRIAGE AS WOMEN WHO DIDN'T HAVE REGULAR JOBS AT THE TIME THEY WERE INTERVIEWED THESE FINDINGS HAVE SOME BIOLOGICAL PLAUSIBILITY THEY CONCLUDED ADDING INDEED IT HAS BEEN FOUND THAT ANIMALS PLACED IN AN ENVIRONMENT WITH SHORT DAYS WILL CEASE TO BE REPRODUCTIVELY COMPETENT THE STUDY WAS INITIALLY UNDERTAKEN THE RESEARCHERS SAID TO SEE IF INTERFERING WITH THE BODY'S DAILY RHYTHMS AFFECTED PREGNANCY THESE DAILY RHYTHMS THE SOCALLED CIRCADIAN RHYTHMS ARE KNOWN TO REGULATE PRODUCTION OF VARIOUS HORMONES IT'S POSSIBLE THAT SHIFT WORK INFLUENCES REPRODUCTIVE FUNCTION IN HUMANS THROUGH HORMONAL DISTURBANCES THEY SAID IN AN ACCOMPANYING EDITORIAL HARRIS PASTIDES AN OCCUPATIONAL HEALTH RESEARCHER AT THE UNIVERSITY OF MASSACHUSETTS IN AMHERST SAID THAT THE RELATION BETWEEN CIRCADIAN RHYTHMS AND PREGNANCY IS POORLY UNDERSTOOD BUT HE NOTED FEMALE FLIGHT ATTENDANTS COMMONLY WORK IRREGULAR SHIFTS AND COMMONLY SUFFER MENSTRUAL IRREGULARITIES THEY ALSO HAVE A HIGHERTHANNORMAL RATE OF MISCARRIAGES ALTHOUGH SOME OF THIS RISK MAY BE DUE TO EXPOSURE TO HIGHALTITUDE RADIATION CIGARETTE SMOKE AT THE TIME OF THE RESEARCH OR HEAVY PHYSICAL WORK HE EXPLAINED BUT DR PASTIDES ALSO NOTED THAT THE STUDY DIDN'T EXAMINE WHAT KIND OF WORK THE WOMEN DID IT'S POSSIBLE HE SAID THAT THE EVENING AND NIGHT SHIFT WORKERS WERE MORE LIKELY TO BE FACTORY WORKERS THAN THE DAYSHIFT WORKERS AND THUS EXPOSED TO MORE PHYSICAL WORK AND MORE ENVIRONMENTAL HAZARDS THE STUDY ALSO DIDN'T LOOK INTO THE ROLE OF PSYCHOLOGICAL STRESS HE SAID NEVERTHELESS THE STUDY HAS RAISED A SERIOUS QUESTION FOR WOMEN CONTEMPLATING PREGNANCY AND FOR THE MEDICAL COMMUNITY DR PASTIDES WROTE IT WOULD BE PRUDENT TO CONSIDER A WOMAN'S JOB EXPOSURES INCLUDING HER WORK SCHEDULE IN FORMULATING A SPECIFIC RECOMMENDATION FOR WOMEN PLANNING TO BECOME OR WHO ARE RECENTLY PREGNANT HE SAID A CANADIAN RESEARCH STUDY THAT FOUND THAT WOMEN WHO WORK NIGHT SHIFTS ARE MORE LIKELY TO SUFFER MISCARRIAGES THAN WOMEN WHO WORK DAY SHIFTS WAS PUBLISHED IN EPIDEMIOLOGY A JAN 11 ARTICLE INCORRECTLY STATED THE STUDY WAS PUBLISHED IN THE AMERICAN JOURNAL OF EPIDEMIOLOGY A DIFFERENT MEDICAL JOURNAL 9301250169 930125 CLARK IS BARRED FROM AMERICAN EXPRESS MEETING EXCLUSION OF EXCHAIRMAN SHOWS SUCCESSION BATTLE IS GROWING MORE BITTER BY FRED R BLEAKLEY AND PETER PAE STAFF REPORTERS OF THE WALL STREET JOURNAL THE BOARDROOM BATTLE TO NAME A SUCCESSOR TO JAMES D ROBINSON III AS CHIEF EXECUTIVE OF AMERICAN EXPRESS CO APPEARS TO BE GETTING EVEN NASTIER THE LATEST SIGN OF THAT IS THE BARRING OF HOWARD L CLARK SR A FORMER CHAIRMAN OF THE FINANCIAL SERVICES GIANT AND A VOCAL OPPONENT OF MR ROBINSON'S CHOICE FOR A SUCCESSOR FROM TODAY'S BOARD MEETING MR CLARK IS NOT A DIRECTOR BUT SERVES AS AN ADVISER AND REGULARLY ATTENDS BOARD MEETINGS HE IS BELIEVED TO BE A LEADER OF FOUR DISSIDENT DIRECTORS WHO ARE EAGER TO NAME AN OUTSIDE CANDIDATE THE EXCLUSION OF MR CLARK COULD BOLSTER MR ROBINSON'S SUPPORT FOR HARVEY GOLUB THE COMPANY'S PRESIDENT BECAUSE IT WOULD REDUCE OPPOSING VIEWPOINTS DURING DISCUSSIONS PRIOR TO THE VOTE MR ROBINSON IS SAID TO HAVE MOST OF THE DIRECTORS IN HIS CAMP MR CLARK WAS VISIBLY ANGRY SEVERAL DAYS AGO AFTER LEARNING HE WOULD NOT BE ALLOWED INTO THE MEETING A PERSON FAMILIAR WITH THE SITUATION SAID MR CLARK TURNED OVER THE REIGNS TO HIS HANDPICKED SUCCESSOR MR ROBINSON 15 YEARS AGO BUT IS SAID TO HAVE BECOME DISENCHANTED WITH MR ROBINSON'S HANDLING OF THE COMPANY IN RECENT YEARS MR CLARK COULDN'T BE REACHED FOR COMMENT AND A SPOKESMAN FOR THE COMPANY SAID HE WASN'T AWARE THAT MR CLARK WOULDN'T BE PARTICIPATING IN TODAY'S MEETING DREW LEWIS A DIRECTOR AND CHAIRMAN OF UNION PACIFIC CORP SAID HE DIDN'T BELIEVE MR CLARK WOULD BE EXCLUDED FROM ALL BOARD MATTERS BUT INDICATED THAT THAT WOULD BE THE CASE WHENEVER A SPECIFIC ISSUE CALLING FOR A VOTE IS DISCUSSED OTHER OUTSIDE ADVISERS WOULD ALSO BE BARRED FROM SUCH DISCUSSIONS HE ALSO SAID IT WOULD BE LOGICAL THAT MR CLARK WOULD NOT BE PARTICIPATING IN ANY DISCUSSION REGARDING THE FUTURE OF THE COMPANY'S SHEARSON LEHMAN BROS BROKERAGE UNIT SINCE MR CLARK'S SON HOWARD L CLARK JR IS THE HEAD OF THAT UNIT THE BOARD'S FIVEPERSON SEARCH COMMITTEE IS EXPECTED TO RECOMMEND EITHER THE 53YEAROLD MR GOLUB OR AN EXECUTIVE FROM OUTSIDE THE COMPANY AT TODAY'S MEETING A SPOKESMAN SAID A PUBLIC COMMENT ON THE SUCCESSION ISSUE IS LIKELY AFTER THE MEETING AN INDICATION THAT MR ROBINSON HAS NOT RELENTED IN HIS CAMPAIGN FOR MR GOLUB IS THAT HE APPARENTLY DIDN'T TELL A GROUP OF DIRECTORS WHO MET THURSDAY THAT HE WAS WILLING TO ENTERTAIN AN OUTSIDE CANDIDATE EARLIER LAST WEEK ONE DIRECTOR HAD SAID THAT MR ROBINSON COULD PREVENT DIRECTORS FROM TAKING SIDES BY SHIFTING HIS ALLEGIANCE TO AN OUTSIDER BEFORE TODAY'S MEETING A PERSON CLOSE TO THE SITUATION SAID THAT MR ROBINSON WANTS TO REMAIN CHAIRMAN FOR AN INDEFINITE PERIOD IF MR GOLUB IS NAMED CHIEF EXECUTIVE OFFICER MR ROBINSON COULDN'T BE REACHED FOR COMMENT A MAJORITY OF DIRECTORS ARE BELIEVED TO FAVOR MR GOLUB BUT IT IS UNCLEAR WHETHER THEY WOULD BE WILLING TO OVERRIDE THE FOUR OR MORE DIRECTORS WHO ARE SAID TO BE OPPOSED TO MR ROBINSON'S CHOICE ANOTHER SIGN THAT MR GOLUB IS GAINING GROUND ARE INDICATIONS THAT ONE OR MORE OUTSIDE CANDIDATES HAVE EITHER DROPPED OUT OF CONTENTION OR ARE NO LONGER UNDER CONSIDERATION EIGHT DAYS AGO MR LEWIS HAD SAID THAT HE WAS NO LONGER SURE OF MR GOLUB'S CHANCES BECAUSE OF NEW INFORMATION ABOUT AN OUTSIDE CANDIDATE REACHED AT HIS HOME YESTERDAY MR LEWIS INDICATED HIS EARLIER VIEW MIGHT HAVE CHANGED BECAUSE AT THAT TIME THERE WERE TWO OR THREE OTHER CANDIDATES MR LEWIS SAID THERE WAS NO FORMAL DISCUSSION OF THE SUCCESSION ISSUE THURSDAY WHEN SEVERAL COMMITTEES OF THE BOARD MET TO DISCUSS 1992 RESULTS BECAUSE IT WOULD HAVE BEEN INAPPROPRIATE SINCE THE FULL BOARD WAS NOT PRESENT A FURTHER SIGN THAT MR GOLUB'S CHANCES LOOK BRIGHTER IS THAT ACCORDING TO MR LEWIS RESULTS OF THURDAY'S MEETING GAVE INDICATIONS THAT THERE IS REASON FOR OPTIMISM IN 1993 9301250168 930125 ECONOMY BENTSEN SEES HIGHER TAXES ON CONSUMING TREASURY CHIEF SUGGESTS NEW ENERGY LEVY IS THE LEADING OPTION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THE CLINTON ADMINISTRATION IS LIKELY TO PROPOSE INCREASED TAXES ON CONSUMPTION AND STRONGLY SUGGESTED THAT A NEW BROADBASED TAX ON ENERGY IS THE LEADING OPTION MR BENTSEN'S STATEMENT WAS THE CLEAREST SIGNAL YET THAT PRESIDENT CLINTON LIKELY WILL RAISE TAXES ON MIDDLEINCOME AMERICANS IN ORDER TO MEET HIS DEFICIT REDUCTION GOAL WHAT YOU'RE GOING TO SEE IS SOME CONSUMPTION TAX IS GOING TO TAKE PLACE HE SAID YESTERDAY ON NBC NEWS'S MEET THE PRESS ALTHOUGH HE WOULDN'T BE SPECIFIC MR BENTSEN ALSO SAID CORPORATE TAX BREAKS ARE BEING TARGETED AS MR CLINTON'S ECONOMIC ADVISERS WORK ON A PLAN TO BE UNVEILED NEXT MONTH YOU'RE GOING TO SEE A NUMBER OF THOSE CORPORATE DEDUCTIONS ELIMINATED HE SAID AS A SENATOR MR BENTSEN WAS AMONG THE PRIMARY ADVOCATES OF OFFERING INDIVIDUALS BIGGER TAX INCENTIVES TO SAVE SUCH AS AN EXPANSION OF ELIGIBILITY FOR INDIVIDUAL RETIREMENT ACCOUNTS BUT HE INDICATED YESTERDAY THAT HE ISN'T PRESSING THAT OPTION NOW BECAUSE REDUCING THE DEFICIT IS MORE IMPORTANT THE US RELIES MUCH MORE HEAVILY THAN OTHER COUNTRIES ON TAXING ITS CITIZENS' INCOME AS MR BENTSEN NOTED MANY ECONOMISTS ARGUE THAT THE GOVERNMENT COULD ENCOURAGE PEOPLE TO SAVE MORE IF INSTEAD IT TAXED THEM MORE ON THEIR SPENDING THE DRAWBACKS OF NEW CONSUMPTION TAXES HE SAID IS THAT THEY CAN BE COMPLEX TO COLLECT AND COMPARED WITH INCOME TAXES TEND TO BE REGRESSIVE HITTING THE POOR HARDER THAN THE RICH MR BENTSEN SAID HE DOUBTS THAT THE CLINTON ADMINISTRATION WILL PROPOSE A NEW NATIONAL SALES TAX EMPHASIZING INSTEAD THE ADVANTAGES OF A TAX ON ENERGY USE IT HELPS LEAD TO SOME ENVIRONMENTAL OBJECTIVES LIKE CONSERVATION HE SAID AND BY DISCOURAGING ENERGY USE OF ALL KINDS AN ENERGY TAX TENDS TO REDUCE THE NATION'S APPETITE FOR IMPORTED OIL MR BENTSEN'S SUCCESSOR AS CHAIRMAN OF THE SENATE FINANCE COMMITTEE SEN DANIEL MOYNIHAN D NY ENDORSED HIGHER ENERGY TAXES ON THE SAME SHOW ENVIRONMENTALISTS SAY A TAX BASED ON THE AMOUNT OF CARBON IN A GIVEN FUEL MAKES THE MOST SENSE BECAUSE IT WOULD PENALIZE DIRTIER FUELS SUCH AS COAL BUT THE CLINTON ADMINISTRATION IS LEANING TOWARD A BROADER TAX WHICH COULD BE BASED ON THE PRICE OF ENERGY OR THE HEAT CONTENT MR BENTSEN WAS UNENTHUSIASTIC ABOUT INCREASING THE 141CENTAGALLON FEDERAL GASOLINE TAX NOTING THAT YOU OBVIOUSLY END UP WITH SOME INEQUITIES AS FAR AS DIFFERENT REGIONS CAUTIONING THAT NO FINAL DECISIONS HAVE BEEN MADE HE ALSO SAID THAT HIGHER TAXES ON TOBACCO AND ALCOHOL ARE SURE ON THE TABLE DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON DIDN'T SUPPORT PROPOSALS TO INCREASE TAXES ON ENERGY ALTHOUGH VICE PRESIDENT ALBERT GORE ADVOCATED A CARBON TAX IN A BOOK HE PUBLISHED BEFORE MR CLINTON CHOSE HIM HOWEVER SEVERAL OF THE EXPERTS WHO MR CLINTON INVITED TO HIS ECONOMIC TEACHIN IN LITTLE ROCK ARK LAST MONTH ENDORSED HIGHER GASOLINE TAXES OR OTHER ENERGY TAXES AND MR GORE DISCLOSED IN A TELEVISION INTERVIEW A WEEK AGO THAT BROADBASED ENERGY TAXES WERE UNDER CONSIDERATION DURING THE CAMPAIGN MR CLINTON DID PROPOSE INCREASING THE TOP MARGINAL INCOMETAX RATE TO 36 FROM THE CURRENT STATED MAXIMUM OF 31 MR BENTSEN WOULDN'T SAY WHETHER THE ADMINISTRATION IS CONSIDERING AN EVEN HIGHER TOP RATE IN ITS QUEST FOR REVENUE BUT SEN MOYNIHAN SAID GOING HIGHER THAN 36 WOULD BE UNWISE THE SECRETARY REPEATED THE LATEST VERSION OF THE PRESIDENT'S DEFICIT GOAL TO SHRINK THE DEFICIT BY 145 BILLION FROM A PROJECTED 357 BILLION FOR THE FISCAL YEAR THAT BEGINS OCT 1 1996 BY REDUCING SPENDING ON GOVERNMENT BENEFITS AND RAISING TAXES BUT IT'S FAR FROM SETTLED THAT MR CLINTON'S FINAL PLAN WILL ACHIEVE THAT MUCH DEFICIT REDUCTION MR BENTSEN INDICATED THAT A SHORTTERM FISCAL STIMULUS REMAINS A STRONG POSSIBILITY TO ASSURE THAT THE ECONOMIC RECOVERY DOESN'T FALTER AS IT HAS IN THE PAST ALTHOUGH A PACKAGE OF TAX CUTS AND SPENDING INCREASES OF ABOUT 20 BILLION MAY BE TOO SMALL TO MOVE THE 6 TRILLION US ECONOMY IT COULD HAVE A FAVORABLE PSYCHOLOGICAL IMPACT ON CONSUMERS AND BUSINESSES HE SAID ALTHOUGH HE WASN'T ASKED ABOUT THE FEDERAL RESERVE ON MEET THE PRESS MR BENTSEN VOLUNTEERED THAT THE FED'S COOPERATION IS NEEDED TO KEEP INFLATION LOW AND THE ECONOMY GROWING HE SAID HE WAS REINSTATING WEEKLY MEETINGS WITH FED CHAIRMAN ALAN GREENSPAN FORMER TREASURY SECRETARY NICHOLAS BRADY FRUSTRATED THAT THE FED WASN'T LOWERING INTEREST RATES MORE RAPIDLY HAD DISCONTINUED THE MEETINGS MR BENTSEN ALSO SAID THE ADMINISTRATION IS CONSIDERING BOTH REGULATORY AND LEGISLATIVE INITIATIVES TO ENCOURAGE BANKS TO LEND MORE LATE FRIDAY MR BENTSEN MOVED AHEAD IN STAFFING HIS DEPARTMENT BY NAMING FIVE ADDITIONAL ASSISTANTS ALICIA HAYDOCK MUNNELL 50 YEARS OLD SENIOR VICE PRESIDENT AND RESEARCH DIRECTOR OF THE FEDERAL RESERVE BANK OF BOSTON WAS CHOSEN FOR ASSISTANT SECRETARY FOR ECONOMIC POLICY AND RONALD NOBLE 36 A NEW YORK UNIVERSITY LAW SCHOOL PROFESSOR WAS CHOSEN AS ASSISTANT SECRETARY FOR ENFORCEMENT FROM HIS SENATE STAFF MR BENTSEN NOMINATED MICHAEL LEVY 45 HIS ADMINISTRATIVE ASSISTANT TO BE ASSISTANT SECRETARY FOR LEGISLATIVE AFFAIRS JACK DEVORE 54 WAS NAMED ASSISTANT SECRETARY FOR PUBLIC AFFAIRS IN ADDITION PHILIP DIEHL 45 WHO RECENTLY WAS NAMED STAFF DIRECTOR OF THE SENATE FINANCE COMMITTEE WAS APPOINTED COUNSELOR TO THE SECRETARY MR DIEHL'S POST DOESN'T REQUIRE SENATE CONFIRMATION SEPARATELY A TREASURY SPOKESMAN SAID THAT DEBORAH DANKER A FED ECONOMIST WHO HAS BEEN SERVING AS DEPUTY ASSISTANT SECRETARY FOR FEDERAL FINANCE WILL CONTINUE IN THAT POST FOR THE TIME BEING SHE OVERSEES THE AUCTIONS OF TREASURY SECURITIES 9301250167 930125 WHAT'S NEWS BUSINESS AND FINANCE TREASURY CHIEF BENTSEN SAID THE CLINTON ADMINISTRATION IS LIKELY TO PROPOSE INCREASED TAXES ON CONSUMPTION HE INDICATED A BROADBASED ENERGY TAX IS THE LEADING OPTION THE REMARKS ARE THE CLEAREST SIGNAL YET THAT CLINTON IS INCLINED TO RAISE TAXES ON MIDDLEINCOME AMERICANS TO MEET HIS DEFICIT REDUCTION GOAL A RECENT BOND RALLY IN THE WAKE OF RUMORS THAT THE TREASURY IS ABOUT TO TRIM HOW MUCH LONGTERM DEBT IT SELLS HAS LENT SUPPORT TO CONTENTIONS THAT SUCH A STEP WOULD SAVE THE US MONEY AND LOWER LONGTERM INTEREST RATES GPA GROUP JET SUPPLIERS BOEING AIRBUS AND FOKKER AGREED TO LET THE LEASING CONCERN REDUCE ITS FIRM ORDERS FOR NEW AIRCRAFT BY NEARLY 7 BILLION TO LESS THAN 4 BILLION AS PART OF GPA'S PLAN TO RETURN TO FINANCIAL HEALTH ONLY ONE SUPPLIER MCDONNELL DOUGLAS DIDN'T AGREE TO A CUT IN ORDERS MCDONNELL DOUGLAS PLANS TO CUT ITS STAFF BY 8700 MORE JOBS OR 10 AS PART OF A COSTCUTTING EFFORT IN THE WAKE OF DECLINING US DEFENSE SPENDING AND A WEAK COMMERCIAL JET MARKET THE COMPANY'S STOCK JUMPED 550 TO 62 IBM IS CONSIDERING GIVING MORE POWERS POSSIBLY INCLUDING THE JOB OF NOMINATING BOARD MEMBERS TO A PANEL OF ITS MOST INFLUENTIAL OUTSIDE DIRECTORS AN INVESTOR GROUP SAID AMERICAN EXPRESS IS BARRING FROM ITS BOARD MEETING TODAY EXCHAIRMAN HOWARD CLARK WHO OPOSES CURRENT CHAIRMAN JAMES ROBINSON'S CHOICE OF HARVEY GOLUB AS HIS SUCCESSOR GENERAL MOTORS' EDS TECHNOLOGY UNIT IS SAID TO BE IN TALKS WITH BRITISH TELECOM ON BUSINESS TIES THAT COULD INVOLVE THE SALE OF EDS STOCK TO THE BRITISH COMPANY GM'S CLASS E SHARES SURGED 225 OR 7 TO 34 A SHARE CELLULAR PHONE STOCKS SLID ON SPECULATION ABOUT A POSSIBLE LINK BETWEEN CELLULAR PHONES AND BRAIN CANCER MCCAW SHARES FELL 2125 TO 36375 GTE'S CONTEL SANK 225 TO 1525 AND MOTOROLA DROPPED 225 TO 59125 SHORTSELLING INVESTOR FESHBACH BROTHERS HAS BEGUN BUYING STOCKS TO HEDGE AGAINST FURTHER RISES IN THE MARKET IN A SIGN OF HOW BADLY SHORTSELLERS HAVE BEEN HURT BY A TWOYEAR MARKET SURGE ESPECIALLY AMONG SMALL STOCKS THE JAPANESE GOVERNMENT HAS BEEN SPENDING LARGE SUMS TO BUY STOCKS ON THE TOKYO MARKET ONE APPARENT AIM IS TO KEEP SHARE PRICES HIGH ENOUGH SO BANKS AND OTHER COMPANIES WON'T HAVE TO DECLARE BIG LOSSES RAYMOND JAMES & ASSOCIATES INFORMED REGULATORS OF SUSPICIOUS TRADING IN CERTAIN STOCKS BEFORE THE BROKERAGE FIRM PUBLISHED ANALYSTS' RECOMMENDATIONS REGARDING THOSE STOCKS JAPAN'S TRADE SURPLUS GREW 12 LAST MONTH FROM A YEAR EARLIER THE FULLYEAR SURPLUS ROSE 38 TO A RECORD THE EPA WAS ORDERED BY AN APPEALS COURT TO FORCE AUTO MAKERS TO INSTALL DEVICES TO CATCH FUMES EMITTED WHEN FUEL IS PUMPED INTO CARS THE RULING HELPS OIL COMPANIES WHICH WON'T HAVE TO PUT SUCH DEVICES ON PUMPS SUPERCOMPUTER DESIGNER STEVE CHEN IS SCRAMBLING FOR FINANCING AFTER IBM CUT OFF FUNDING OF HIS BID TO BUILD THE WORLD'S MOST POWERFUL COMPUTER DELTA AIR LINES' CREDIT RATINGS WERE LOWERED BY MOODY'S WHICH SAID THE CARRIER'S PERFORMANCE HAS BEEN WEAKER THAN THAT OF ITS MAIN RIVALS THE BRITISH GOVERNMENT UNVEILED DRAFT LEGISLATION THAT SETS THE STAGE FOR THE SALE OF STATEOWNED BRITISH RAIL BONDS LEHMAN BROTHERS TREASURY INDEX 477062 UP 700 COMMODITIES OIL 1883 A BARREL UP TWO CENTS DOW JONES FUTURES INDEX 12150 OFF 020 SPOT INDEX 12312 OFF 111 DOLLAR 12510 YEN UP 030 15905 MARKS OFF 00233 9301250166 930125 USAA INVESTMENT SETTLES SEC CHARGES ON VALUING BY FUND WASHINGTON USAA INVESTMENT MANAGEMENT CO AGREED TO PAY A 50000 FINE TO SETTLE SECURITIES AND EXCHANGE COMMISSION CHARGES THAT ONE OF ITS FUNDS VIOLATED THE INVESTMENT COMPANY ACT IN VALUING MORE THAN 177 MILLION IN DEBT SECURITIES THE SEC'S ALLEGATIONS INVOLVED DEBT SECURITIES PURCHASED BETWEEN JULY 18 1989 AND NOV 28 1990 BY STEVEN HARROP A FORMER EMPLOYEE OF USAA ON BEHALF OF ONE OF USAA TAX EXEMPT FUND INC'S MONEYMARKET FUNDS THE SEC SAID THE SECURITIES WEREN'T RATED BY A NATIONALLY RECOGNIZED RATING ORGANIZATION SUCH AS MOODY'S OR STANDARD & POOR'S BECAUSE THE SECURITIES WEREN'T RATED THE FUND WAS REQUIRED TO DETERMINE THE SECURITIES' NET ASSET VALUE AT THE END OF EACH BUSINESS DAY KNOWN AS THE MARKTOMARKET REQUIREMENT THE SEC ALLEGED THAT MR HARROP WROTE ON THE INTERNAL ORDER TICKETS FOR THE SECURITIES INDICATING THEY HAD BEEN GIVEN A HIGHQUALITY RATING BY A RATING ORGANIZATION WHICH WOULD HAVE EXEMPTED THEM FROM THE MARKTOMARKET REQUIREMENT USAA'S MANAGEMENT USED INFORMATION FROM THE TICKETS TO MONITOR SECURITIES HELD IN FUND PORTFOLIOS AND TO COMPILE DATA FOR THE TAX EXEMPT FUND'S 1989 SEMIANNUAL REPORT AND 1990 ANNUAL REPORT THE SEC SAID WITHOUT ADMITTING WRONGDOING USAA AGREED TO BE CENSURED BY THE SEC AND TO HIRE AN INDEPENDENT ACCOUNTING FIRM TO REVIEW THE COMPANY'S INTERNAL CONTROLS THE BOARD OF USAA TAX EXEMPT FUND WILL ADOPT RESTATED WRITTEN PROCEDURES TO ASSURE COMPLIANCE WITH THE SEC'S ACCOUNTING RULES MR HARROP WHO LEFT USAA IN FEBRUARY 1991 AGREED TO A CENSURE AND A 5000 CIVIL FINE WITHOUT ADMITTING WRONGDOING HE COULDN'T BE REACHED TO COMMENT IN AN INTERVIEW MICHAEL ROTH PRESIDENT OF USAA INVESTMENT NOTED THAT THE SEC ALLEGATIONS CONCERNED EVENTS THAT OCCURRED THREE YEARS AGO HE SAID USAA HAS SINCE TAKEN STEPS TO ENSURE COMPLIANCE WITH SEC ACCOUNTING REGULATIONS MR ROTH SAID ALL SECURITIES SCRUTINIZED BY THE SEC HAVE BEEN RETIRED AND ALL OF THEM PAID INTEREST AND PRINCIPAL ON SCHEDULE THERE WAS NO LOSS TO THE FUND AND NO LOSS TO SHAREHOLDERS HE SAID ADDING THAT HE DOESN'T EXPECT THE SETTLEMENT TO AFFECT USAA'S BUSINESS 9301250165 930125 LETTERS TO THE EDITOR A BRIEF LOOK AT THE CIA'S CRYSTAL BALL IN HIS DEC 23 EDITORIALPAGE ARTICLE REFORM TASK FOR WOOLSEY AT THE CIA MARVIN OTT QUESTIONED THE POLICY RELEVANCE AND ANALYTIC RIGOR OF THE WORK OF THE CIA'S DIRECTORATE OF INTELLIGENCE DI YOUR READERS DESERVE TO SEE SOME FACTS ABOUT WHAT THE CIA'S ANALYSTS REALLY DO OUR MOST IMPORTANT FUNCTION IS TO PREPARE A DAILY INTELLIGENCE PUBLICATION FOR THE PRESIDENT AND A HALFDOZEN CABINETLEVEL OFFICERS THIS PUBLICATION ALERTS THEM TO KEY ECONOMIC POLITICAL MILITARY AND PROLIFERATION DEVELOPMENTS WORLDWIDE ABOUT 60 OF THE TOPICS ADDRESSED ARE NOT COVERED BY THE PRESS THE CIA BRIEFER WHO DELIVERS THE PUBLICATION SITS WITH OUR SENIOR CONSUMERS AS THEY READ IT THUS THE AGENCY KNOWS EACH POLICY MAKER'S NEEDS AND IS ABLE TO ANSWER HIS FOLLOWUP QUESTIONS AGENCY ANALYSTS ALSO PREPARE MATERIALS FOR MEETINGS OF THE NATIONAL SECURITY COUNCIL AND ITS DEPUTIES COMMITTEE AND SENIOR AGENCY OFFICERS ATTEND AND BRIEF AT THESE MEETINGS THESE WINDOWS INTO POLICY DELIBERATION PERMIT INTELLIGENCE OFFICERS TO PROVIDE TIMELY AND RELEVANT ANALYSIS WITH RELEVANCE HOWEVER COMES THE MUCHDISCUSSED RISK OF POLITICIZATION WE HAVE TAKEN NUMEROUS STEPS TO ELIMINATE POLITICIZATION WE HAVE APPOINTED AN OMBUDSMAN AND ARE STRENGTHENING THE SKILLS AND ACCOUNTABILITY OF MANAGERS IMPROVING COMMUNICATION WITH FEEDBACK FORMS AND EMPLOYEE OPINION SURVEYS STREAMLINING OUR REVIEW PROCESS AND AGGRESSIVELY ENCOURAGING ALTERNATIVE VIEWS IN OUR PRODUCTS DI ANALYSTS KNOW THESE MEASURES ARE INTENDED TO PROTECT OUR OBJECTIVITY AND CONTRARY TO WHAT ONE READS IN THE PRESS THEIR MORALE IS HIGH THE DI'S ANNUAL ATTRITION RATE AMONG PROFESSIONALS IS LOW BY ANY STANDARD IN 1992 FOR EXAMPLE ONLY 4 LEFT THE AGENCY BECAUSE OF RETIREMENT OR RESIGNATION WHILE AN ADDITIONAL 2 MOVED TO OTHER JOBS WITHIN THE CIA THE STRENGTH OF THE DI IS THE EXPERTISE OF ITS ANALYSTS EACH YEAR THEY PREPARE SEVERAL HUNDRED MEMORANDUMS AND DELIVER MORE THAN 2000 ORAL BRIEFINGS TO POLICY MAKERS MILITARY COMMANDERS AND LAW ENFORCEMENT OFFICIALS IN RESPONSE TO SPECIFIC REQUESTS MEMBERS AND STAFF OF CONGRESS AT THEIR INITIATIVE RECEIVE MORE THAN 1500 INTELLIGENCE PUBLICATIONS AND 500 BRIEFINGS ANNUALLY LOOKING ONLY AT THE PAST COUPLE OF YEARS THE FACTS SHOW THAT WE FORESAW THE COLLAPSE OF THE SOVIET EMPIRE AND MIKHAIL GORBACHEV'S REFORMS DREW ATTENTION EARLY TO THE RISE OF BORIS YELTSIN AND WARNED IN ADVANCE OF A LIKELY COUP ATTEMPT IN MOSCOW IN 1991 SIMILARLY THE WRITTEN RECORD SHOWS WE SOUNDED ALARMS ABOUT A MILITARY CRACKDOWN IN CHINA WELL BEFORE THE EVENTS OF TIANANMEN SQUARE IN THE MIDDLE EAST THE DI WAS THE FIRST TO ALERT POLICY MAKERS TO IRAQ'S IMPENDING MILITARY ACTION AGAINST KUWAIT AND THE AGENCY'S ANALYSIS OF IRAQI FORCES AND THE DAMAGE THEY SUFFERED IN BATTLE WAS SECOND TO NONE IN EASTERN EUROPE WE WARNED CLEARLY AND FAR IN ADVANCE OF THE DISINTEGRATION OF YUGOSLAVIA AND THE BREAKUP OF CZECHOSLOVAKIA AS A CONGRESSIONAL STAFF COLLEAGUE WITH SIMILAR BACKGROUND AND EXPERIENCE I READ MR OTT'S ESSAY WITH GREAT INTEREST SOME OF WHAT HE SAYS DOESN'T SQUARE WITH MY OWN FINDINGS COMPETITIVE ANALYSIS IS A SACROSANCT PRINCIPLE IN THE INTELLIGENCE BUSINESS WITH THAT IN MIND I OFFER MY OWN PERSPECTIVE COOKING INTELLIGENCE FOR FOREIGN POLICY RECIPES IS SOMETHING WE WATCH VERY CLOSELY ON CAPITOL HILL MR OTT INSINUATES THAT THAT IS JUST WHAT ROBERT GATES DID TO BUTTRESS THENCIA DIRECTOR WILLIAM CASEY'S SUSPICION THAT THE KGB WAS BEHIND THE PLOT TO ASSASSINATE THE POPE I WAS LEANING THE SAME WAY AS CASEY AND IN A LONG MEETING I QUESTIONED CIA ANALYSTS ABOUT THIS THEY CONTENDED THAT THE EVIDENCE WAS TOO THIN TO SUPPORT THE KGB CONSPIRACY THEORY I CHALLENGED THEM AGGRESSIVELY BUT THEY STUCK TO THEIR GUNS DESPITE MR OTT'S CONTENTION THAT THEY WERE FORCED TO CONFORM TO CASEY'S THEORY THEIR BOSS AT THAT TIME WAS BOB GATES ONE FINAL OBSERVATION NO ONE IS INFALLIBLE AS A FORMER CIA ANALYST AND MANAGER I KNOW BOTH ANALYSTS AND THEIR MANAGERS MAKE MISTAKES I MADE A NUMBER OF THEM MYSELF BUT THEY ARE HONEST MISTAKES TO SUGGEST OTHERWISE PAINTS A DISTORTED PICTURE THAT MISLEADS YOUR READERSHIP MR SMEETON IS CURRENTLY REPUBLICAN COUNSEL ON THE HOUSE PERMANENT SELECT COMMITTEE ON INTELLIGENCE 9301250164 930125 LETTERS TO THE EDITOR OR IN OTHER WORDS NONE OF YOUR BUSINESS IN HIS JAN 12 LEISURE & ARTS REVIEW OF THE 18THCENTURY EUROPEAN STEREOTYPES PRESENTED IN AN EXHIBITION FOR THE EUROPEAN ARTS FESTIVAL PAUL LEVY MENTIONS SEVERAL CARICATURES OF FRENCH LADIES TRYING TO SOLVE THE PERENNIAL MYSTERY OF WHAT IF ANYTHING SCOTSMEN WEAR UNDER THEIR KILTS ANY HIGHLANDER WORTH HIS HAGGIS WOULD REPLY NOTHING WORN AT ALL MADAM EVERYTHING'S IN FINE WORKING ORDER 9301250163 930125 FINANCING BUSINESS PLATINUM SOFTWARE CORP PLATINUM SOFTWARE CORP IRVINE CALIF SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 25 MILLION COMMON SHARES THE SOFTWARE COMPANY WILL OFFER ONE MILLION SHARES AND CERTAIN STOCKHOLDERS WILL OFFER 15 MILLION SHARES HAMBRECHT & QUIST INC AND MONTGOMERY SECURITIES WILL MANAGE THE OFFER 9301250162 930125 ITALY'S INDUSTRIAL OUTPUT DROPS MILAN ITALY'S INDUSTRIAL OUTPUT FELL AN UNADJUSTED 17 IN NOVEMBER FROM A YEAR EARLIER THE STATE STATISTICAL INSTITUTE ISTAT SAID ISTAT SAID THE INDEX 1985 EQUALS 100 REGISTERED 1209 IN NOVEMBER COMPARED WITH 123 IN NOVEMBER 1991 THE NUMBER OF WORKING DAYS IN NOVEMBER 1992 WAS 21 ONE DAY LESS THAN IN NOVEMBER 1991 THE DROP FOLLOWED A 51 DECLINE IN OCTOBER 9301250161 930125 LTV'S STOCK SURGES DESPITE ITS PROPOSAL FOR REORGANIZATION COMMON CLIMBS 50 TO 1125 EVEN THOUGH FIRM'S PLAN PUTS VALUE AT THREE CENTS BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND LTV CORP ONE OF THE COUNTRY'S LONGESTRUNNING BANKRUPTCIES FRIDAY FOUND ITSELF IN THE ODD POSITION OF HAVING TO CALM RAGING STOCKMARKET ENTHUSIASM FOR ITS SHARES THE COMPANY'S COMMON STOCK JUMPED 50 TO CLOSE AT 1125 UP 375 CENTS ON UNUSUALLY HEAVY VOLUME OF 15 MILLION SHARES WHAT STUMPED THOSE WHO FOLLOW LTV WAS THAT THE COMMON WOULD BE WORTH A MERE 322 CENTS A SHARE UNDER A REORGANIZATION PLAN PRESENTED LAST TUESDAY AT ITS PEAK PRICE FRIDAY OF 2 THE COMMON STOCK HAD A TOTAL MARKET VALUE OF 268 MILLION OR MORE THAN 50 TIMES THE VALUE ASSIGNED TO THE STOCK IN THE REORGANIZATION PLAN BY EARLY FRIDAY AFTERNOON LTV APPARENTLY FELT COMPELLED TO REMIND INVESTORS THROUGH A NEWS RELEASE THAT THEIR COMMON SHARES WERE WORTH LESS THAN A NICKEL LTV'S STOCK HAD PULLED BACK SOMEWHAT BY THE END OF TRADING FRIDAY BUT THE RUNUP LEFT MANY PEOPLE SCRATCHING THEIR HEADS TO TRADE 15 MILLION SHARES OF THIS STUFF TAKES A BROAD CROSSSECTION OF STUPID PEOPLE SAID CHRISS STREET A BANKRUPTCY SPECIALIST IN CORONA DEL MAR CALIF SOME ANALYSTS SUGGESTED THE BUYING WAVE COULD HAVE BEEN TOUCHED OFF BY REPORTS THURSDAY THAT LTV THE NATION'S THIRDLARGEST STEEL MAKER WOULD RAISE PRICES 4 TO 5 ON SECONDQUARTER SHIPMENTS OF HOT AND COLDROLLED SHEET MOREOVER SOME PEOPLE READ THE FIRST TWO PARAGRAPHS OF THE STORIES ABOUT THE REORGANIZATION AND SAY 'HEY THE COMPANY'S COMING OUT OF BANKRUPTCY' AND THEY BUY THE STOCK SAID LEON GREENBLATT VICE PRESIDENT AT REPURCHASE CORP A CHICAGO MONEY MANAGEMENT FIRM MR GREENBLATT WHO HELD 10000 SHARES OF THE COMPANY'S CLASS C PREFERRED STOCK HAPPILY SOLD HIS SHARES AT 7 EACH FRIDAY WHEN THEY TOO WERE CARRIED ALONG BY A MISINFORMED BUYING WAVE THE CLASS C STOCK IS SLATED TO BE PAID OFF AT 21 CENTS A SHARE UNDER LTV'S REORGANIZATION PLAN BUT IT'S LIKELY THAT NOT ALL THE PROFESSIONALS WERE ON THE SELL SIDE SHORTSELLERS MAY HAVE FELT PRESSURE TO BUY LTV TO REPLACE BORROWED SHARES AS THE PRICE MOVED UP MR STREET THEORIZED THAT ONCE THE RALLY TOOK OFF LTV MAY HAVE GOTTEN A BOOST FROM COMPUTERIZED STOCKTRADING PROGRAMS SET TO ISSUE BUY ORDERS FOR STOCKS THAT MOVE UP SHARPLY AT THE END OF THE DAY SOME PEOPLE PROBABLY SAT DOWN AT THEIR COMPUTERS AND FOUND OUT HEY I OWN 300000 SHARES OF THIS 9301250160 930125 HOME BUILDING ENDED THE YEAR WITH A BOUNCE REDUCED MORTGAGE RATES IMPROVED PSYCHOLOGY HELPED HOUSING STARTS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOME BUILDING ENDED THE YEAR ON THE UPSWING PUNCTUATING A REBOUND FROM A DISMAL 1991 HELPED BY REDUCED MORTGAGE INTEREST RATES AND IMPROVED CONSUMER PSYCHOLOGY HOUSING STARTS GREW 55 IN DECEMBER TO AN ANNUAL RATE OF 1302000 THE COMMERCE DEPARTMENT SAID CONSTRUCTION FOR THE YEAR REBOUNDED TO 1202000 UP 18 FROM 1991'S 1013000 THE LOWEST SINCE WORLD WAR II LAST YEAR'S RISE WAS THE FIRST ANNUAL INCREASE SINCE 1986 THE DEPARTMENT SAID THE 1992 PICKUP WAS CONSIDERABLY MORE MODEST THAN THE SHARP FIRSTYEAR POSTRECESSION REBOUND A DECADE AGO HOWEVER THE HOUSINGSTARTS DECLINE DURING THE RECENT ECONOMY'S SLUMP WAS ALSO MORE MILD THAN THE EARLY1980S DROP THOUGH IT HELPED STRETCH OUT AN ALREADY PERSISTENT CONSTRUCTION DECLINE TO FIVE YEARS AVERAGE RATES FOR 30YEAR FIXEDRATE MORTGAGES FELL NEARLY A QUARTER POINT TO ABOUT 81 IN DECEMBER LAST MONTH'S CONSTRUCTION INCREASE FOLLOWED A REVISED 09 INCREASE IN NOVEMBER I THINK WE'RE ENTERING '93 ON A PRETTY GOOD FOOTING AT LEAST FOR SINGLEFAMILY HOUSING SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS THE GROUP'S SURVEY OF BUILDERS SUGGESTS THAT THE SINGLEFAMILY MARKET CONTINUES TO COME TOGETHER MR SEIDERS SAID HE PREDICTED A 10 INCREASE IN HOUSING STARTS THIS YEAR MOSTLY IN SINGLEFAMILY HOMES IN DECEMBER CONSTRUCTION OF SINGLEFAMILY HOMES ROSE 37 TO A 1130000UNIT ANNUAL RATE THE RATE FOR MULTIFAMILY BUILDING CLIMBED 194 TO 172000 UNITS BUILDING PERMITS AN INDICATION OF FUTURE CONSTRUCTION ROSE 9 TO 104000 FOR SINGLEFAMILY HOMES BUT FELL 64 TO 160000 FOR MULTIFAMILY HOMES THE MULTIFAMILY MARKET REMAINS VERY VERY WEAK SAID DAVID BERSON CHIEF ECONOMIST FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE DECEMBER CONSTRUCTION REBOUND IN THAT MARKET BRINGS IT BACK TO SORT OF A STANDARD MISERABLE RANGE THE HOME BUILDERS' MR SEIDERS ADDED EVERY REGION SHOWED SIZABLE OVERALL CONSTRUCTION INCREASES IN DECEMBER EXCEPT THE WEST WHERE STARTS FELL 49 ALL THE MONTHLY FIGURES ARE ADJUSTED FOR SEASONAL CHANGE IN ANOTHER REPORT THE LABOR DEPARTMENT SAID NEW CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE A SEASONALLY ADJUSTED 17000 IN THE WEEK ENDED JAN 9 TO 361000 THE LARGEST INCREASE OCCURRED IN CALIFORNIA DUE TO LAYOFFS IN CONSTRUCTION AEROSPACE AND OTHER MANUFACTURING INDUSTRIES FOR THE FOUR WEEKS ENDED JAN 9 INITIAL CLAIMS AVERAGED 331750 UP FROM AN AVERAGE OF 331500 IN THE FOUR WEEKS ENDED JAN 2 A TOTAL OF 2741000 PEOPLE RECEIVED STATE UNEMPLOYMENT BENEFITS IN THE WEEK ENDED JAN 2 DOWN 24000 FROM A REVISED 2765000 IN THE PREVIOUS WEEK PEOPLE RECEIVING JOBLESS BENEFITS REMAINED AT 26 OF THOSE COVERED BY UNEMPLOYMENT INSURANCE 9301250159 930125 LETTERS TO THE EDITOR CIRCULAR REASONING DOESN'T SQUARE WITH ME I APPRECIATED HOLMAN JENKINS'S GENERALLY SUPPORTIVE REVIEW OF MY BOOK A QUESTION OF INTELLIGENCE LEISURE & ARTS JAN 12 YET FEEL I MUST RESPOND TO A COUPLE OF HIS DEMURRERS ACCUSING ME OF CIRCULAR REASONING HE SAYS MR SELIGMAN GAMELY SPECULATES THAT ARTHUR JENSEN HAS A HIGH IQ THEN USES THIS SURMISE TO HELP EXPLAIN WHY MR JENSEN HAS BEEN SUCH A DOMINANT FIGURE IN THE IQ DEBATE WELL SURE IT WOULD BE CIRCULAR IF MY REFERENCE TO A 156 IQ WERE MERE SPECULATION BUT IT ISN'T AS THE BOOK MAKES PLAIN MR JENSEN AS AN ADULT TOOK THE CONCEPT MASTERY TEST AND SCORED AT A LEVEL EQUIVALENT TO 156 ON THE STANFORDBINET IQ TEST THAT IS A PRODIGIOUS SCORE AND REALLY DOES HELP EXPLAIN WHY HE HAS PREVAILED IN SO MANY OF THE ARGUMENTS OVER THE YEARS MR JENKINS DISPARAGES THE POSSIBILITY THAT PACIFIC RIM ECONOMIC TRIUMPHS MAY BE RELATED TO THE SLIGHTLY HIGHER IQ SCORES OF EAST ASIANS RELATIVE TO AMERICANS IT IS TRUE THAT A DIFFERENCE OF THREE OR FOUR POINTS BETWEEN ANY TWO WORKERS WOULD BE TRIVIAL THE AVERAGE AMERICAN WORKER IS PROBABLY ABOUT AS GOOD AS THE AVERAGE JAPANESE WORKER BUT WHEN YOU TURN FROM THE AVERAGES TO THE EXTREMES YOU SEE QUITE MEANINGFUL DIFFERENCES IN LABORFORCE QUALITY FOR EXAMPLE SOMETHING LIKE 10 OF AMERICAN WORKERS WOULD SCORE BELOW 80 THOSE ARE PROBLEM WORKERS AND OUR OWN ARMED FORCES WOULD REJECT THEM AS RECRUITS BECAUSE THEY ARE SO HARD TO TRAIN ONLY ABOUT 3 OF JAPANESE WORKERS WOULD SCORE BELOW 80 9301250158 930125 WHO'S NEWS CONSOLIDATED RAIL CORP CONSOLIDATED RAIL CORP PHILADELPHIA FRANK H NICHOLS 46 YEARS OLD WAS NAMED VICE PRESIDENT OF RESOURCE DEVELOPMENT AT THIS RAILFREIGHT TRANSPORTATION NETWORK MR NICHOLS WHO HAD BEEN ASSISTANT VICE PRESIDENT OF FINANCIAL PLANNING SUCCEEDS RICHARD C SULLIVAN 64 WHO IS RETIRING FEB 28 9301250157 930125 STATE SAYS CHAIN INVOLVED IN OUTBREAK DIDN'T COMPLY WITH NEW COOKING RULE BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL AN OUTBREAK OF A BACTERIAL INFECTION CAUSED BY CONTAMINATED FASTFOOD HAMBURGERS APPARENTLY CLAIMED THE LIFE OF A TWOYEAROLD TACOMA WASH BOY BUT COULD HAVE BEEN AVERTED IF THE JACK IN THE BOX RESTAURANT CHAIN HAD COMPLIED WITH A NEW STATE COOKING REGULATION HEALTH OFFICIALS IN WASHINGTON STATE SAID STATE HEALTH OFFICIALS SAID THEY INTEND TO SHOW THAT FOODMAKER INC THE OPERATOR OF JACK IN THE BOX RESTAURANTS HAD BEEN INFORMED OF THE NEW REGULATION WHICH SINCE MAY HAS REQUIRED MEAT TO BE COOKED TO 155 DEGREES FAHRENHEIT BUT FAILED TO COMPLY BUT FOODMAKER BASED IN SAN DIEGO SAID IT WASN'T AWARE OF THE NEW STANDARD AND HAD BEEN COMPLYING WITH LESSSTRINGENT FEDERAL COOKING REGULATIONS WHICH REQUIRE HEATING TO 140 DEGREES WHEN THE OUTBREAK BEGAN ABOUT 10 DAYS AGO SINCE THEN MORE THAN 150 PEOPLE MOST OF THEM CHILDREN HAVE GOTTEN SICK MOSTLY IN WASHINGTON STATE MOST OF THE CASES HAVE BEEN LINKED TO HAMBURGERS SERVED AT JACK IN THE BOX RESTAURANTS TRADING IN THE STOCK OF FOODMAKER WHICH ALSO OPERATES CHICHI'S MEXICAN RESTAURANTS WAS HALTED AT AROUND 1 PM EST FRIDAY WITH THE STOCK OFF 250 AT 950 ON THE NEW YORK STOCK EXCHANGE SINCE THE CLOSE OF TRADING FRIDAY JAN 15 WHEN WORD OF THE OUTBREAK STARTED SPREADING FOODMAKER'S STOCK HAS DROPPED NEARLY 32 FROM 13875 THE COMPANY WENT PUBLIC IN MARCH JACK IN THE BOX SAID IT'S NOW FOLLOWING WASHINGTON'S HIGHER TEMPERATURE STANDARD AT ALL OF ITS RESTAURANTS THE COMPANY SAID IT HAS ALSO INCREASED COOKING TIME FROM TWO MINUTES TO TWO MINUTES 15 SECONDS AND REQUIRED AN EXTRA FLIP TO ENSURE THOROUGH COOKING WASHINGTON STATE HEALTH OFFICIALS SAID TESTS SHOWED HIGH LEVELS OF COLIFORM BACTERIA FROM ANIMAL FECES IN TWO OF 10 GROUND BEEF SAMPLES COLLECTED FROM JACK IN THE BOX RESTAURANTS MOREOVER THE OFFICIALS SAID MOST OF THE BACTERIA COULD HAVE BEEN DESTROYED IF JACK IN THE BOX HAD FOLLOWED THE NEW COOKING REGULATION THERE MIGHT HAVE STILL BEEN A FEW CASES SAID DEAN OWEN THE HEALTH DEPARTMENT SPOKESMAN BUT CERTAINLY NOT THE EPIDEMIC WE'RE SEEING NOW MR OWEN ALSO SAID HE IS CONFIDENT THAT JACK IN THE BOX WAS WELL INFORMED OF THESE NEW REGULATIONS NOTING THAT THEY WERE INTRODUCED AFTER FIVE YEARS OF WELLPUBLICIZED PUBLIC AND INDUSTRY MEETINGS BUT FOODMAKER INSISTED IT WASN'T AWARE OF THE NEW STANDARD WE ARE NOT EXPECTED TO BE EXPERTS ON DISEASE SAID CHUCK DUDDLES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF FOODMAKER WE HAVE TO DEPEND ON THE EXPERTS AT THE DEPARTMENT OF AGRICULTURE TO SET THE STANDARDS WE ARE NOT A RESEARCH FIRM HEALTH OFFICIALS SAID THAT THE LIKELY SOURCE OF THE COLIFORM WAS MEAT CONTAMINATION AT THE TIME OF SLAUGHTER FOODMAKER OBTAINS ITS GROUND BEEF FROM A PROCESSING PLANT OWNED BY VONS COS ARCADIA CALIF MARY MCABOY A VONS SPOKESWOMAN SAID THE CONTAMINATED BEEF WAS PART OF A LOT IT SUPPLIED TO FOODMAKER BUT THAT VONS CONDUCTED USDA STANDARD RANDOM TESTING AND OUR TESTS DO NOT SHOW UNUSUAL RESULTS IN NEW YORK STOCK EXCHANGE TRADING VON'S CLOSED AT 2450 DOWN 50 CENTS A SHARE WASHINGTON STATE HEALTH OFFICIALS HAVE ALSO TESTED THE MEAT FOR THE E COLI 0157H7 BACTERIUM WHICH HAS CAUSED 151 CONFIRMED AND LIKELY CASES OF BLOODY DIARRHEA IN WASHINGTON STATE AND BOISE IDAHO SINCE EARLY JANUARY RESULTS OF THOSE TESTS ARE EXPECTED THIS WEEK E COLI BACTERIA ARE TYPICALLY FOUND IN THE INTESTINES AND FECES OF CATTLE VONS SAID ITS PROCESSING PLANT IS SUPPLIED BY MONFORT BEEF OF GREELEY COLO SERVICE PACKING OF LOS ANGELES AND ORLEANS INTERNATIONAL OF DETROIT JACK IN THE BOX PRESIDENT ROBERT NUGENT SAID THE COMPANY WOULD PLEDGE 100000 TO A FOUNDATION TO ASSIST CHILDREN AFFLICTED WITH THE AILMENT THAT CAUSED THE DEATH OF MICHAEL NOLE A HOSPITAL SPOKESMAN SAID THE BOY DIED OF CARDIOVASCULAR COLLAPSE BROUGHT ON BY HEMOLYTIC UREMIC SYNDROME A KIDNEY DISEASE THAT CAN RESULT FROM A TOXIN RELEASED INTO THE BODY BY THE E COLI BACTERIUM 9301250156 930125 WHO'S NEWS DNA PLANT TECHNOLOGY CORP DNA PLANT TECHNOLOGY CORP CINNAMINSON NJ JOHN D MACOMBER 65 YEARS OLD WAS NAMED A DIRECTOR ON THE 10MEMBER BOARD AT THIS AGRICULTURAL BIOTECHNOLOGY COMPANY MR MACOMBER WHO IS A FORMER CHAIRMAN AND PRESIDENT OF EXPORTIMPORT BANK OF THE US IN WASHINGTON SUCCEEDS CRISTER AHLUND 47 WHO RETIRED IN JULY 9301250155 930125 WHO'S NEWS COMCAST CORP COMCAST CORP PHILADELPHIA DONALD A HARRIS 40 YEARS OLD WAS NAMED A SENIOR VICE PRESIDENT AT THIS CABLE COMMUNICATIONS SYSTEMS CONCERN MR HARRIS IS PRESIDENT OF COMCAST CELLULAR COMMUNICATIONS THE CELLULAR TELEPHONE DIVISION AND HAD BEEN VICE PRESIDENT AT THE PARENT COMPANY IN ADDITION TO HIS RESPONSIBILITY FOR CELLULAR TELEPHONE OPERATIONS HE WILL BE ACTIVE IN DEVELOPMENT AND IMPLEMENTATION OF RELATED WIRELESS COMMUNICATIONS AND TELEPHONE ACTIVITIES 9301250154 930125 WHO'S NEWS ALEXANDER & ALEXANDER SERVICES INC ALEXANDER & ALEXANDER SERVICES INC NEW YORK DAN R OSTERHOUT 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT ALEXANDER & ALEXANDER INC A PRINCIPAL UNIT OF THIS INSURANCE BROKERAGE RISK MANAGEMENT AND HUMAN RESOURCE MANAGEMENT CONCERN HIS POSITION IS NEWLY CREATED AS A RESULT OF A RESTRUCTURING OVER A YEAR AGO HE HAD BEEN SENIOR VICE PRESIDENT AND OPERATIONS DIRECTOR AT THE UNIT 9301250153 930125 TEXAS UTILITIES SEEKS RATE INCREASE TO COVER NUCLEAR PLANT COSTS DALLAS TEXAS UTILITIES CO SAID IT FILED WITH THE TEXAS PUBLIC UTILITIES COMMISSION FOR A RATE INCREASE TO RAISE ANNUAL REVENUE 760 MILLION OR 153 THE UTILITY SAYS THE INCREASE IS NEEDED TO COVER COSTS OF COMANCHE PEAK NUCLEAR PLANT NEAR FORT WORTH UNIT 2 OF THAT PLANT WILL BE IN OPERATION THIS SUMMER THE COMPANY SAID COMANCHE PEAK'S CONSTRUCTION SO FAR HAS COST ABOUT 12 BILLION INCLUDING THE COST OF BORROWING FUNDS DURING CONSTRUCTION FOR BOTH UNITS A TEXAS UTILITIES SPOKESMAN SAID MORE COSTS ARE EXPECTED FOR UNIT 2 WHICH IS NOT YET COMPLETE HE ADDED INCLUDED IN THE 760 MILLION FILING IS 138 MILLION FOR RECOVERY OF INCREASED STATE AND LOCAL TAXES AND COSTS OF A CHANGE IN ACCOUNTING FOR RETIREMENT BENEFITS THE PROPOSED INCREASE IN RATES WILL BE VIGOROUSLY CONTESTED ON BEHALF OF RATEPAYERS SAID STEVE FOGEL ASSOCIATE COUNSEL OF THE OFFICE OF PUBLIC COUNSEL A STATE ORGANIZATION THAT INTERVENES IN UTILITY RATE CASES BEFORE THE TEXAS COMMISSION IN A PREVIOUS RATE CASE TEXAS UTILITIES WAS ALLOWED BY THE COMMISSION TO INCLUDE IN ITS RATE BASE ABOUT 59 BILLION OF COMANCHE PEAK'S COSTS THE RATE BASE IS GENERALLY THE VALUE OF UTILITY PROPERTY ON WHICH A UTILITY CAN EARN AN APPROVED RATE OF RETURN HOWEVER THE TEXAS COMMISSION DISALLOWED ABOUT 138 BILLION IN COMANCHE PEAK COSTS FOR 1991 THE COMPANY HAD A LOSS OF 4099 MILLION OR 198 A SHARE ON 49 BILLION IN REVENUE THE LOSS INCLUDED A 104 BILLION CHARGE PRIMARILY FROM THE REGULATORY DISALLOWANCE SEPARATELY TEXAS UTILITIES SAID IT AGREED TO ACQUIRE SOUTHWESTERN ELECTRIC SERVICE CO IN A STOCK AND CASH TRANSACTION VALUED AT ABOUT 60 MILLION CHARLES GOFORTH CHAIRMAN OF SOUTHWESTERN ELECTRIC SAID IN A STATEMENT THAT BEING ACQUIRED BY TEXAS UTILITIES WOULD REDUCE OPERATION AND MAINTENANCE EXPENSES AND PROVIDE GREATER FINANCIAL FLEXIBILITY AND ACCESS TO CAPITAL MARKETS HE SAID SOUTHWESTERN ELECTRIC WOULDN'T SEEK ANY RATE INCREAES FOR FIVE YEARS OR UNTIL RATES FALL BY 5 SOUTHWESTERN IS BASED IN DALLAS 9301250152 930125 FINANCING BUSINESS CALIFORNIA MICROWAVE INC CALIFORNIA MICROWAVE INC SUNNYVALE CALIF SAID IT IS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 22 MILLION SHARES TO REDUCE DEBT BEAR STEARNS & CO IS LEAD UNDERWRITER 9301250151 930125 WHO'S NEWS DRESS BARN INC DRESS BARN INC STAMFORD CONN SUSAN FRANKENBERG 34 YEARS OLD WAS NAMED VICE PRESIDENT OF MARKETING AT THIS OPERATOR OF OFFPRICE WOMEN'S APPAREL STORES MS FRANKENBERG WHOSE POSITION IS NEWLY CREATED HAD BEEN DIRECTOR OF MARKETING AT LERNER NEW YORK A DIVISION OF LIMITED INC 9301250149 930112 LEISURE & ARTS BOOKSHELF ALL ABOUT GENES AND BRAINS BY HOLMAN JENKINS SCIENCE HAS BEEN TELLING US LATELY THAT OUR GENES ARE RESPONSIBLE FOR AN AWFUL LOT OF WHO WE ARE AND THROUGH THE HUMAN GENOME PROJECT IT MAY SOON GIVE US POWER TO SHAPE WHO OUR CHILDREN WILL BE IT'S HARD TO BE ENTIRELY THRILLED WITH THESE DEVELOPMENTS BUT SCIENTIFIC KNOWLEDGE WILL COME ANYWAY SO PROBABLY WE OUGHT TO DEAL HONESTLY WITH WHATEVER WE LEARN FOR A LITTLE DISCOURAGMENT TAKE A LOOK AT DANIEL SELIGMAN'S BRIEF VERY READABLE INTRODUCTION TO THE CONTINUING BROUHAHA OVER THE RELATIONSHIP BETWEEN GENES AND BRAINS A QUESTION OF INTELLIGENCE THE IQ DEBATE IN AMERICA BIRCH LANE PRESS 239 PAGES 1695 ON JUST ABOUT ALL THE MAIN ISSUES HE WRITES SCHOLARS IN THE FIELD ARE FAR MORE UNIFIED THAN YOU MIGHT SUPPOSE FROM EXPOSURE TO THE SUBJECT IN THE AMERICAN MEDIA THAT IS THEY AGREE THAT IQ TESTS ARE VALUABLE AND THAT INTELLIGENCE IS LARGELY INHERITED AND YET REPORTERS WOULD RATHER SHOVE THEIR NOTEBOOKS AND MICROPHONES UNDER THE NOSES OF A FEW ACADEMIC MARXISTS WHO SNORT THAT IQ TESTS ARE MERELY INSTRUMENTS OF CLASS AND RACIAL OPPRESSION MILLIONS HAVE TAKEN IQ TESTS AND THERE'S A FORMIDABLE DATA BASE TESTIFYING TO THEIR PREDICTIVE WORTH BUT POLITICIANS AND THE PUBLIC REMAIN HOSTILE ANYWAY FOR MR SELIGMAN A VETERAN WRITER AND EDITOR AT FORTUNE THIS IS SOMETHING OF A SHAME HE'S AN ENTHUSIAST FOR IQ TESTS AND ALMOST GIDDY ABOUT THEIR EXPLANATORY POWER AND IT'S TRUE THAT HAVING A HIGH IQ IS POSITIVELY CORRELATED WITH SUCH GOOD THINGS AS STELLAR GRADES A LOFTY INCOME FEWER DIVORCES AND NONSMOKING BUT MR SELIGMAN SOMETIMES SOUNDS LIKE HE'S FOUND THE ROSETTA STONE OF ALL THE REASONS FOR THE ECONOMIC TRIUMPHS OF THE PACIFIC RIM HOW IMPORTANT IS THE FACT THAT EAST ASIANS SCORE FIVE POINTS HIGHER ON IQ TESTS NOT VERY I'D WAGER BUT THEN HE'S CLEARLY IN A PAMPHLETEERING MOOD WE SPEND A WHOLE CHAPTER WITH ARTHUR JENSEN OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY BETE NOIRE OF THE POLITICALLY CORRECT CROWD FOR INSISTING ON THE GENETIC BASIS OF GROUP DIFFERENCES IN IQ AT TIMES PROF JENSEN HAS HAD TO GO AROUND CAMPUS WITH BODYGUARDS THE GOOD PROFESSOR DECLINES TO REVEAL HIS OWN IQ BUT MR SELIGMAN GAMELY SPECULATES THAT IT MUST BE AROUND 156 IN A CUTE BIT OF CIRCULARITY WE'RE TOLD THAT THIS HELPS TO EXPLAIN WHY JENSEN HAS BEEN SUCH A DOMINANT FIGURE IN THE IQ DEBATE MR SELIGMAN IS MORE CONVINCING ON THE BASICS IQ TESTS DO MEASURE SOMETHING THAT MOST PEOPLE WOULD RECOGNIZE AS INTELLIGENCE AND SCORING WELL ON THEM IS LARGELY A MATTER OF HAVING THE RIGHT GENES THAT MAKES ETHNIC VARIATIONS INEVITABLE AS LONG AS FINNS OR FIJI ISLANDERS CONSORT MORE WITH THEMSELVES THAN WITH EACH OTHER YOU WOULD EXPECT DIFFERENCES IN THE DISTRIBUTION OF ANY HERITABLE TRAIT ON IQ TESTS JAPANESE AND JEWS SCORE ON AVERAGE SLIGHTLY HIGHER THAN CAUCASIANS BLACKS SOMEWHAT LOWER THERE'S ALSO A STRONG CONNECTION BETWEEN IQ AND PERSONAL SUCCESS A STUDY OF BROTHERS WHO WENT THROUGH THE KALAMAZOO MICH SCHOOL SYSTEM FOUND THAT A 15POINT DIFFERENCE IN CHILDHOOD IQ WAS LINKED TO A 14 DIFFERENCE IN INCOME BY AGES 3539 MR SELIGMAN RUDELY SUMS UP THE DATA ON AVERAGE THE RICH ARE MORE INTELLIGENT THAN THE MIDDLE CLASS AND THE MIDDLE CLASS IS MORE INTELLIGENT THAN THE POOR THE KEY WORDS ARE ON AVERAGE BECAUSE LIFE REMAINS SOMETHING OF A CRAPSHOOT HAVING SUPERSMART GENES CAN DO WONDERS FOR YOUR FUTURE INCOME BUT SO CAN INHERITING A LOT OF MONEY OR BEING IN THE RIGHT PLACE AT THE RIGHT TIME AND WHATEVER YOUR ETHNICITY THE PROPER IQ TO CONSULT IS YOUR OWN NOT THE STATISTICAL AVERAGE OF SOME SKIN GROUP IT'S ALSO A MISTAKE TO SLIGHT THE ROLE OF INSTITUTIONS ALL THOSE BRAINY ASIANS MAY BE PROSPERING NOW BUT IT WAS THE DOPEY CAUCASIANS WHO PERFECTED THE NOTIONS OF PROPERTY RIGHTS AND INDIVIDUAL LIBERTY THAT MAKE PROSPERITY POSSIBLE MR SELIGMAN CAN'T RESIST SPINNING EVOLUTIONARY SCENARIOS TO EXPLAIN GROUP DIFFERENCES IN IQ BUT HE KNOWS HE'S ON THIN ICE SO HE LIMITS HIS SPECULATION TO CASES THAT ARE FLATTERING TO THE GROUPS IN QUESTION THUS JEWS RACK UP HIGH VERBAL SCORES BECAUSE MEDIEVAL RABBIS SIRED LARGE FAMILIES WHILE CATHOLIC PRIESTS REMAINED CELIBATE ASIANS ACE THE VISUOSPACIAL QUESTIONS BECAUSE THEIR ICEAGE FOREBEARS HAD TO SPOT WHITE ARCTIC HARES SCAMPERING ACROSS THE FROZEN WASTES MR SELIGMAN IS PARTICULARLY KEEN ON IQ TESTING AS A WAY TO GET MORE MILEAGE OUT OF HUMAN CAPITAL SO IT SEEMS ODD THAT HE HAS LITTLE TO SAY ON THE LATEST TWIST IN THE IQ DEBATE THE EARNINGS OF THE WELLEDUCATED HAVE SOARED IN RECENT YEARS AT THE SAME TIME MORE WOMEN ARE WORKING SO THERE'S MORE OPPORTUNITY FOR ASSORTATIVE MATING BOY INVESTMENT BANKER MEETS GIRL INVESTMENT BANKER ADDING THESE FACTORS UP SOME PEOPLE WORRY THAT THE IQ MERITOCRACY IS HARDENING INTO A RIGID CLASS SYSTEM BASED ON INHERITED MENTAL ABILITY IN THE END THE ANTAGONISTS IN THE IQ DEBATE GET SO RILED UP FOR THE SAME REASON BOTH SIDES TEND TO SEE THE CONTEST FOR WEALTH AND PRESTIGE AS THE BEALL AND ENDALL OF SOCIAL LIFE BUT PEOPLE HAVE LOTS OF REASONS FOR LIVING AND OFTEN THESE HAVE MORE TO DO WITH LOVE FAMILY AND VOCATION THAN WITH FAME AND FORTUNE MR SELIGMAN IS AT HIS MOST PERSUASIVE WHEN DEFENDING IQ TESTING AS A TOOL TO HELP PEOPLE FIND THEIR CALLINGS AND IN GOING OUT OF HIS WAY TO CITE THE SUPERIOR IQS OF CERTAIN NAZI WAR CRIMINALS HE REMINDS US THAT INTELLIGENCE IS NOT SYNONYMOUS WITH GOODNESS MR JENKINS IS A JOURNAL EDITORIAL WRITER SEE RELATED LETTER LETTERS TO THE EDITOR CIRCULAR REASONING DOESN'T SQUARE WITH ME WSJ JAN 25 1993 9301120099 9301250148 930104 THE CURSE OF BEING A RESERVE CURRENCY BY LEWIS E LEHRMAN AND JOHN MUELLER THE EUROPEAN MONETARY SYSTEM IS BREAKING DOWN FOR THE SAME REASON THE GOLDEXCHANGE STANDARD IN 1931 AND THE BRETTON WOODS SYSTEM IN 1971 COLLAPSED THE USE OF DOMESTIC CURRENCIES AS INTERNATIONAL RESERVES GERMANY INHABITS WITHIN EUROPE TODAY ROUGHLY THE SAME POSITION THE US DID IN THE WORLD OF THE 1950S IN THE 1950S THERE WAS A LOT OF HANDWRINGING ABOUT A SUPPOSEDLY STRUCTURAL DOLLAR SHORTAGE BUT THIS DOLLAR SHORTAGE WAS ESSENTIALLY A SUPERABUNDANCE OF EUROPEAN CURRENCIES ONCE EUROPEAN COUNTRIES CURBED THE ISSUING OF MONEY TO COVER BUDGET DEFICITS AND HARDENED THEIR INTERNATIONAL PAYMENTS IN 1958 THE DOLLAR SHORTAGE TURNED OVERNIGHT INTO A DOLLAR GLUT NOW THEORIES ARE PUT FORWARD ASSERTING A STRUCTURAL SHORTAGE OF DEUTSCHE MARKS SOME SAY THAT STABLE EXCHANGE RATES ARE NOT POSSIBLE IN EUROPE BECAUSE OF THE TASK OF REBUILDING EASTERN GERMANY BUT THEY DO NOT EXPLAIN WHY THE MUCH LARGER TASK OF REBUILDING WEST GERMANY AFTER WORLD WAR II WAS ACCOMPLISHED UNDER STABLE EXCHANGE RATES SOME ALSO ARGUE THAT EUROPE'S BEING TIED TO THE MARK DURING REUNIFICATION IMPOSED DEFLATION ON OTHER COUNTRIES BUT THEY DO NOT EXPLAIN HOW COUNTRIES WITH INFLATION RATES OF 4 TO 6 A YEAR LIKE ITALY AND BRITAIN WERE SUFFERING DEFLATION STILL OTHERS ARGUE THAT THE EUROPEAN MONETARY SYSTEM SOMEHOW REQUIRES A PERVERSE CONVERGENCE OF INTEREST RATES BUT NOT INFLATION RATES THEY DO NOT EXPLAIN WHY SAY ITALY'S INTEREST RATES ARE SELDOM LESS THAN THREE PERCENTAGE POINTS HIGHER THAN GERMANY'S JUST AS WITH THE DOLLAR SHORTAGE OF THE 1950S THE APPARENT DEARTH OF MARKS IS PARTLY A PLETHORA OF POUNDS AND LIRA AND FRANCS THE BALANCE SHEETS OF EUROPE'S CENTRAL BANKS REVEAL THAT THE WEAKEST CURRENCIES ARE ALMOST INVARIABLY THOSE WHOSE CENTRAL BANKS MONETIZE THAT IS PURCHASE GOVERNMENT DEBT ON A LARGE SCALE THE LIRA THE POUND THE PESETA AND EVEN LATELY THE FRENCH FRANC BY CONTRAST THE MARK AND THOSE CURRENCIES THAT HAVE HAD NO PROBLEM REMAINING TIED TO THE MARK FOR EXAMPLE THE BELGIAN FRANC AND THE DUTCH GUILDER HAVE CENTRAL BANKS THAT DON'T MONETIZE GOVERNMENT DEBT IN SIGNIFICANT AMOUNTS YET ALSO LIKE THE US UNDER BRETTON WOODS GERMANY IS STILL SUFFERING FROM INFLATION CAUSED BY THE RAPID RECENT EXPANSION OF ITS RESERVE CURRENCY ROLE US INFLATION HAS BEEN MUCH HIGHER SINCE THE END OF DOLLARGOLD CONVERTIBILITY BUT US CONSUMER AND PRODUCER PRICES BOTH DOUBLED UNDER BRETTON WOODS TO DESCRIBE THE PROBLEM SIMPLY FOR OTHER COUNTRIES TO INCREASE THEIR FOREIGN EXCHANGE RESERVES THE RESERVE CURRENCY COUNTRY MUST PURCHASE MORE WEALTH ABROAD THAN IT SELLS IE RUN A BALANCEOFPAYMENTS DEFICIT THIS DEMAND FOR WEALTH WITHOUT A MATCHING SUPPLY CAUSES INFLATION OF EITHER GOODS OR SECURITIES PRICES USUALLY BOTH IN SUCCESSION ANY OTHER COUNTRY WOULD BE FORCED TO CORRECT SUCH AN IMBALANCE OR ELSE LOSE ALL OF ITS INTERNATIONAL RESERVES AND DEVALUE BUT THE RESERVE CURRENCY COUNTRY'S LOSS OF RESERVES TAKES THE FORM OF IOUS TO FOREIGN CENTRAL BANKS SO ITS NET RESERVES CAN BE NEGATIVE WITHOUT ANY ABSOLUTE LIMIT THE INFLATIONARY PRESSURE IS THEREFORE UNCHECKED AND IT QUICKLY SPREADS TO OTHER COUNTRIES THROUGH THE RESERVE CURRENCY COUNTRY'S PURCHASES OF FOREIGN WEALTH INSTEAD OF MAKING REPEATED SMALL CORRECTIONS TO KEEP ITS PRICES COSTS AND PAYMENTS IN BALANCE WITH THE REST OF THE WORLD THE RESERVE CURRENCY COUNTRY PILES UP AN EVERLARGER IMBALANCE WHEN THE RESERVE CURRENCY COUNTRY DOES APPLY THE MONETARY BRAKES HOWEVER THE RESULT CAN BE A DEFLATION POTENTIALLY AS LARGE AS THE PREVIOUS INFLATION AS FROM 1928 TO 1932 WHEN VIRTUALLY ALL THE WORLD'S OFFICIAL FOREIGN EXCHANGE RESERVES WERE WIPED OUT AND PRICES DECLINED TO PREWORLD WAR I LEVELS THE ONLY ALTERNATIVE IS A LARGE DEVALUATION OF THE RESERVE CURRENCY BRITAIN IN 1931 1949 AND 1967 AND THE US IN THE 1970S AND LATE 1980S THE DANGER IS MAGNIFIED BECAUSE CENTRAL BANKS DO NOT TRACK THE ACTUAL INFLATIONARY OR DEFLATIONARY FORCES AT WORK WITH RESERVE CURRENCIES DOMESTIC MONEY SUPPLY GROWTH ALONE GIVES FALSE SIGNALS BECAUSE THE INFLATIONARY OR DEFLATIONARY POTENTIAL ALSO INCLUDES ANY CHANGE IN HOLDINGS OF THE RESERVE CURRENCY BY FOREIGN CENTRAL BANKS USING A SIMILAR ANALYSIS JACQUES RUEFF CORRECTLY WARNED OF THE COLLAPSE OF THE 1920S GOLDEXCHANGE STANDARD AND IN THE 1960S MR RUEFF AND ROBERT TRIFFIN ACCURATELY PREDICTED THE BREAKDOWN OF THE GOLDDOLLAR BRETTON WOODS SYSTEM IN THE PAST FEW YEARS WE HAVE EXTENDED THE ANALYSIS TO SHOW THAT THE WAVES OF WORLDWIDE INFLATION SINCE BRETTON WOODS ARE ALSO LARGELY DUE TO THE DOLLAR'S CONTINUED STATUS AS THE WORLD'S CHIEF RESERVE CURRENCY FOR OVER HALF A CENTURY MAJOR CHANGES IN US INFLATION INCLUDING THE 198991 EPISODE HAVE BEEN PRECEDED BY COMMENSURATE CHANGES IN WHAT OUR FIRM HAS CALLED THE WORLD DOLLAR BASE THE WORLD DOLLAR BASE CONSISTS OF US CURRENCY AND BANK RESERVES PLUS FOREIGN OFFICIAL DOLLAR RESERVES THE SAME PROCESS IS NOW AT WORK IN GERMANY THANKS TO THE MARK'S ROLE AS THE REGIONAL RESERVE CURRENCY OF EUROPE ACCORDING TO THE INTERNATIONAL MONETARY FUND FOREIGN CENTRAL BANKS HELD ABOUT DM200 BILLION AT THE END OF 1991 MORE THAN 125 BILLION THE RAPID EXPANSION OF FOREIGN MARK RESERVES ACCOMPANIED A TREMENDOUS SIMULTANEOUS EXPANSION OF CREDIT IN THE GERMAN BANKING SYSTEM WHICH UNDER EUROPE'S STABLE EXCHANGE RATE SYSTEM WOULD OTHERWISE HAVE EXHAUSTED GERMANY'S INTERNATIONAL RESERVES COMPREHENSIVE DATA FOR MARK RESERVES DO NOT GO AS FAR BACK AS FOR DOLLAR AND STERLING RESERVES BUT THEY STRONGLY INDICATE THAT WHAT WE CALL THE WORLD DEUTSCHE MARK BASE THE SUM OF GERMAN CURRENCY AND BANK RESERVES PLUS FOREIGN MARK RESERVES HAS ABOUT THE SAME IMPACT ON MARK INFLATION AS THE WORLD DOLLAR BASE HAS ON DOLLAR INFLATION FOR THE US WE CHOSE THE PRODUCER PRICE INDEX TO MEASURE INFLATION FOR GERMANY WE USED THE GROSS NATIONAL PRODUCT INDEX THE REASON FOR THE DIFFERENCE IS THAT THE WORLD DOLLAR BASE AFFECTS COMMODITY INFLATION WORLDWIDE BECAUSE THE COMMODITY MARKETS ARE CONDUCTED IN DOLLARS WHILE THE WORLD DEUTSCHE MARK BASE MOSTLY AFFECTS THE PRICE OF GERMAN OUTPUT GERMANY IMPORTS SOME INFLATION FROM THE DOLLARBASED COMMODITY MARKETS WHICH IS NOT FULLY OFFSET BY MARK APPRECIATION AGAINST THE DOLLAR BUT GERMANY'S INFLATION IS NOW HIGHER THAN IN THE US NOT BECAUSE OF GERMAN REUNIFICATION BUT BECAUSE REUNIFICATION HAS BEEN PARTLY FINANCED THROUGH THE MARK'S RESERVE CURRENCY STATUS TO CURB THE INFLATION THE BUNDESBANK HAS TRIED TO BRING ABOUT ALL AT ONCE A CORRECTION OF INFLATIONARY PRESSURES THAT HAD BUILT UP FOR YEARS THE ADJUSTMENT HAS BEEN DRAMATIC WE KNOW FROM PUBLISHED STATISTICS THAT BETWEEN THE END OF 1991 AND SEPTEMBER 1992 GERMANY'S NET RESERVE POSITION INCREASED BY A STAGGERING DM94 BILLION ABOUT 60 BILLION PROBABLY MUCH MORE YET THE ESSENCE OF THE RESERVE CURRENCY SYSTEM IS THAT THE NET RESERVE INCREASES OF OTHER COUNTRIES DEPEND ON THE NET RESERVE LOSSES AND BALANCEOFPAYMENTS DEFICITS OF THE RESERVE CURRENCY COUNTRY THUS THE 60 BILLION INCREASE IN GERMAN NET RESERVES IN NINE MONTHS WAS NECESSARILY MIRRORED BY EQUAL NET RESERVE LOSSES AND BALANCEOFPAYMENTS DEFICITS OF OTHER COUNTRIES THIS PUT IMPOSSIBLE STRAINS ON THE EXCHANGE RATE MECHANISM THE FAULT DOES NOT LIE WITH THE BUNDESBANK BUT WITH THE RESERVE CURRENCY SYSTEM WHICH WAS CHOSEN BY THE OTHER CENTRAL BANKS FACED WITH A DOMESTIC RECESSION AFTER ITS EARLIER BOOM THE BUNDESBANK HAS BEGUN TO LOWER INTEREST RATES CONTINUING TO DO SO WOULD ALSO ALLOW OTHER EUROPEAN COUNTRIES TO CUT INTEREST RATES AND REBUILD THEIR FOREIGN EXCHANGE RESERVES BUT A RENEWED INCREASE IN MARK RESERVES WOULD RENEW THE GERMAN BALANCEOFPAYMENTS DEFICIT AND RESTART DOMESTIC GERMAN INFLATION THERE IS NO WAY WITHIN THE CURRENT SYSTEM TO ESCAPE THIS DILEMMA EITHER GERMANY MUST GET USED TO CHRONIC INFLATION PUNCTUATED BY DRACONIAN YET ULTIMATELY FUTILE INTERESTRATE HIKES TO BRING IT UNDER CONTROL OR ELSE THE MARK MUST STOP BEING A RESERVE CURRENCY SOME WILL SAY THAT ALL THIS IS A GOOD ARGUMENT FOR A EUROPEAN CENTRAL BANK THE PROPOSED FEDERAL RESERVE SYSTEM OF EUROPE WOULD FORBID THE MONETIZATION OF NATIONAL BUDGET DEFICITS AND END THE RESERVE CURRENCY ROLE OF NATIONAL CURRENCIES LIKE THE MARK BUT HAVE PROPONENTS OF A EUROPEAN CENTRAL BANK THOUGHT FAR ENOUGH SINCE A NEW EUROPEAN CURRENCY WOULD BE USED AS A RESERVE CURRENCY BY OTHER COUNTRIES ALL OF EUROPE WOULD SUFFER THE SAME RESERVECURRENCY INFLATION WE HAVE SEEN IN THE US AND NOW IN GERMANY THIS WOULD BE TRUE EVEN IF THE EUROPEAN CENTRAL BANK DID NOT COMPOUND THE PROBLEM BY MONETIZING THE DEFICITS OF A FEDERAL EUROPEAN GOVERNMENT MOREOVER EUROPE WILL STILL IMPORT SOME COMMODITY INFLATION FROM THE DOLLAR AREA AS LONG AS THE DOLLAR'S WORLDWIDE RESERVE CURRENCY ROLE CONTINUES AND THERE IS ANOTHER WORLDWIDE PROBLEM WITH INFLATION DOWN FOR NOW OR COMING DOWN AS THE RESULT OF PAST MONETARY SQUEEZING HOW DO WE DEAL WITH THE BURDEN OF DEBT BUILT UP DURING THE PERIOD OF INFLATION TRYING TO STIMULATE THE ECONOMY WITH STILL MORE DEBT OR MORE INFLATION WOULD BE SELFDEFEATING BECAUSE IT WOULD REQUIRE A STILL LARGER ADJUSTMENT LATER ON WHAT IS NEEDED IS TO MAKE THE WORLD FINANCIAL SYSTEM MORE LIQUID TO INCREASE THE RATIO OF MONEY TO DEBT WITHOUT TRIGGERING SIGNIFICANT INFLATION OR DEFLATION AN EFFECTIVE SOLUTION WOULD NEED TO COVER A NUMBER OF DETAILS BUT THE ESSENTIAL CONDITION IS CLEAR INTERNATIONAL MONEY MUST BE ONE COUNTRY'S ASSET WITHOUT BEING ANOTHER COUNTRY'S LIABILITY CENTRAL BANKS ALREADY HAVE SUCH AN ASSET GOLD THE SIMPLEST AND MOST EFFECTIVE SOLUTION WOULD BE ONE PROPOSED BUT NOT ADOPTED IN THE 1920S AND 1960S CENTRAL BANKS SHOULD REVALUE THEIR GOLD RESERVES FROM THE STILLOFFICIAL PRICE OF 4222 AN OUNCE AND USE THE RESULTING INCREASE IN MONETARY RESERVES WHICH WOULD BE AUGMENTED BY PRIVATE DISHOARDING AND NEW GOLD PRODUCTION TO REPLACE FOREIGN EXCHANGE AS OFFICIAL INTERNATIONAL RESERVES SOME FOREIGN CURRENCY RESERVES COULD BE RETIRED BY SWAPS OF OFFSETTING CLAIMS OR AMORTIZED WITH GOVERNMENTTOGOVERNMENT DEBT THE TWO REQUIREMENTS OF A MODERN INTERNATIONAL GOLD STANDARD ENDING THE MONETIZATION OF GOVERNMENT DEBT AND RESERVE CURRENCIES ARE THE SAME AS FOR ANY COUNTRY JOINING THE PROPOSED EUROPEAN CURRENCY UNION BUT ONLY SUCH A REFORM BY SHARPLY INCREASING THE NET RESERVES OF THE WORLD AS A WHOLE WOULD ALSO SHARPLY LOWER INTEREST RATES STIMULATE INVESTMENT INCREASE EMPLOYMENT AND FACILITATE THE REPAYMENT OF EXISTING DEBT WITHOUT ENGENDERING SIGNIFICANT INFLATION OR DEFLATION ABSENT SUCH A PLAN IT'S CLEAR THAT WHILE IMPROVEMENTS CAN BE MADE IN INDIVIDUAL COUNTRIES THERE WILL BE NO LASTING ECONOMIC STABILITY IN EUROPE OR ANYWHERE ELSE AS LONG AS THE INTERNATIONAL MONETARY SYSTEM IS BASED ON RESERVE CURRENCIES MESSRS LEHRMAN AND MUELLER ARE PRINCIPALS OF LBMC INC AN ARLINGTON VA MARKET FORECASTING FIRM THIS ARTICLE IS ADAPTED FROM A LONGER PAPER THE LESSONS OF EUROPE'S MONEY MUDDLE THE RESERVE CURRENCY CURSE' VISITS EUROPE SEE RELATED LETTER LETTERS TO THE EDITOR A BARBAROUS RELIC THAT HUMBLES EMPIRES WSJ JAN 25 1993 9301040010 9301250147 930125 SOUTH KOREA'S TRADE RISES 33 SEOUL SOUTH KOREA EXTERNAL TRADE IN 1992 ROSE 33 FROM THE PREVIOUS YEAR THE LOWEST RISE AMONG MAJOR ASIAN TRADING COUNTRIES SOUTH KOREA'S TRADE ASSOCIATION SAID THE KOREA FOREIGN TRADE ASSOCIATION SAID IN A REPORT THAT LAST YEAR'S EXPORTS AMOUNTED TO 768 BILLION AND IMPORTS WERE 817 BILLION FOR A TOTAL OF 1585 BILLION UP 33 FROM 1534 BILLION IN 1991 THE RISE CONTRASTED WITH GAINS OF 22 FOR CHINA 21 FOR HONG KONG 10 FOR TAIWAN AND 64 FOR SINGAPORE THE ASSOCIATION SAID CHINA'S TRADE VOLUME ROSE FROM 1356 BILLION TO 1656 BILLION EXCEEDING THAT OF SOUTH KOREA FOR THE FIRST TIME IT ADDED SOUTH KOREA'S EXPORTS AND IMPORTS RECORDED LOW GROWTH RATES IN 1992 MAINLY BECAUSE OF A SLOW ECONOMY CAUSED BY THE GOVERNMENT'S TIGHT MONETARY POLICY THE COUNTRY'S ECONOMY GREW ABOUT 5 IN 1992 DOWN FROM 84 IN 1991 AND 93 IN 1990 9301250146 930125 GERMAN CAR REGISTRATIONS RISE FLENSBURG GERMANY GERMAN NEWCAR REGISTRATIONS REBOUNDED 21 IN DECEMBER FROM THE PREVIOUS MONTH THE FEDERAL MOTOR VEHICLES OFFICE SAID REGISTRATIONS TOTALED 291784 UNITS WHICH ALSO REPRESENTS A 26 SURGE FROM DECEMBER 1991 NEW REGISTRATIONS FOR ALL OF 1992 WERE 55 LESS THAN IN 1991 AT 39 MILLION UNITS THE OFFICE ADDED THE AGENCY DESCRIBED DECEMBER'S UPTURN AS RELATIVELY WEAK REGISTRATIONS HAD FALLEN 52 IN NOVEMBER FROM OCTOBER 9301250145 930125 FINANCING BUSINESS MARK IV INDUSTRIES INC MARK IV INDUSTRIES INC SAID IT CALLED FOR REDEMPTION THE 285 MILLION OUTSTANDING PRINCIPAL AMOUNT OF ITS 12375 SUBORDINATED DEBENTURES DUE FEB 15 2003 THE AMHERST NY COMPANY SAID IT IS TO REDEEM THE SHARES FEB 22 AT 10464 OF PRINCIPAL PLUS ACCRUED INTEREST USING CASH BORROWED UNDER AN EXISTING BANK CREDIT FACILITY MARK IV WHICH MAKES SYSTEMS FOR THE POWER TRANSFER TRAFFIC CONTROL AND AUDIO MARKETS SAID THE ACTION WOULD REDUCE THE COMPANY'S INTEREST EXPENSE BY ABOUT 2 MILLION A YEAR 9301250144 930125 LEISURE & ARTS BOOKSHELF THE MYTH OF THE BUMBLING INCOMPETENT BY OLIVIER BERNIER KING LOUIS XVI OF FRANCE MEANT WELL HE WAS CONVINCED THAT HIS FIRST DUTY WAS TO DO WHAT HIS PEOPLE WANTED AND AS A RESULT HE WAS WILLING AND EVEN OCCASIONALLY EAGER TO BRING ABOUT REFORMS HE UNDERSTOOD THAT HIS COURT WAS TOO EXPENSIVE AND SET ABOUT RETRENCHING FAR MORE IMPORTANT WHEN IT BECAME CLEAR TO HIM THAT THE SYSTEM WAS NO LONGER WORKING HE CALLED THE FIRST MEETING OF THE ESTATESGENERAL IN 150 YEARS ALL THAT SHOULD HAVE MADE HIM POPULAR INSTEAD THIS UNCHARISMATIC INDECISIVE MONARCH ENDED UP LOSING BOTH HIS THRONE AND HIS LIFE THE STORY IN OUTLINE IS A FAMILIAR ONE EVEN THOUGH LOUIS ITS PRINCIPAL FIGURE HAS BEEN LARGELY IGNORED IN FAVOR OF MORE PICTURESQUE PROTAGONISTS RESTORING THE KING TO THE CENTER OF THINGS IS JOHN HARDMAN'S LOUIS XVI YALE UNIVERSITY PRESS 304 PAGES 30 THOROUGH RESEARCH INTO PRIMARY SOURCES ENABLES HIM TO GIVE US A CLEAR PICTURE OF WHAT LOUIS THOUGHT AND FELT AND WHY HE TRIED TO RULE AS HE DID THE RESULT IS NOT JUST SOUND SCHOLARSHIP BUT A BOOK THAT READS LIKE A FIRSTRATE MURDER MYSTERY UNTIL NOW LOUIS XVI HAS BEEN GENERALLY PICTURED AS AN OUTOFTOUCH DULLARD WATCHING THE WORLD AROUND HIM WITH STUNNED INCOMPREHENSION IT IS TRUE THAT HE WAS IN SOME WAYS UNABLE TO UNDERSTAND THE CHANGES THAT TOOK PLACE FROM 1789 ON BUT THEN SO WERE MOST OF THE PEOPLE WHO BROUGHT THEM ABOUT WHAT IS NEW ABOUT MR HARDMAN'S BIOGRAPHY IS THAT HE SHOWS US A MAN OF REAL IF CIRCUMSCRIBED INTELLIGENCE WHO USED HIS VERY SHORTCOMINGS IN A FREQUENTLY SUCCESSFUL EFFORT TO BECOME A BETTER RULER OF COURSE LOUIS ALSO SUFFERED FROM A NUMBER OF DISABILITIES EVEN WORSE THAN HIS FAILING TO CONSUMMATE HIS MARRIAGE FOR SEVEN YEARS SURGERY SOLVED THAT PROBLEM IN 1777 WAS HIS ALMOST PARALYZING SHYNESS HE IS SEIZED BY TIMIDITY AND WHEN HE WANTS TO SAY SOMETHING OBLIGING THE WORDS STICK IN HIS THROAT AND WITH THE BEST WILL IN THE WORLD NOTHING COMES OUT HIS VALET EXPLAINED TO ONE OF THE MINISTERS EVEN SO THAT SHYNESS WAS PUT TO USE DELIBERATE SILENCE MORE THAN ONCE PROVED AN EXCELLENT WAY TO DISMISS A FOOLISH SUGGESTION OR AN IMPORTUNATE REQUEST MORE SURPRISING STILL WE FIND OUT THAT ON A NUMBER OF KEY OCCASIONS LOUIS'S INSTINCTS WERE SOUNDER THAN THOSE OF HIS MINISTERS WHEN AT THE AGE OF 20 HE INHERITED THE THRONE HE DECIDED RIGHTLY THAT HE NEEDED ADVICE AND SENT FOR THE ELDERLY COMTE DE MAUREPAS A MAN RECOMMENDED BY HIS LATE FATHER MAUREPAS IMMEDIATELY URGED THE YOUNG KING TO RECALL THE PARLIAMENT A GROSSLY REACTIONARY UNREPRESENTATIVE AND CORRUPT INSTITUTION THAT HAD BEEN ABOLISHED BY LOUIS XV IN 1771 THIS WOULD BE A POPULAR MOVE MAUREPAS POINTED OUT AND EVER AWARE OF THE POWER OF PUBLIC OPINION LOUIS GAVE IN DESPITE SEVERE MISGIVINGS IT WAS A FATAL MISTAKE WITHOUT THE PARLIAMENT THE MONARCHY COULD REFORM ITSELF WITH IT THE MOST RIGID IMMOBILITY PREVAILED THIS BLEND OF GOOD INSTINCT AND LACK OF SELFCONFIDENCE DOGGED LOUIS UNTIL THE VERY END EVERY INCH A KING HE WOULD NOT ALLOW A MINISTER TO RULE IN HIS PLACE M TURGOT WANTS TO BE ME AND I DON'T WANT HIM TO BE ME HE EXCLAIMED BEFORE DISMISSING THAT ENLIGHTENED MINISTER UNFORTUNATELY BY THE TIME THE KING DECIDED EITHER TO FOLLOW OR TO FIRE HIS MINISTERS IMPORTANT MATTERS HAD OFTEN BEEN DANGEROUSLY DELAYED NEVER MORE SO THAN DURING THE REVOLUTION IN PARTICULAR THE HUGE DEFICIT AND INEQUITABLE TAX SYSTEM NEEDED ADDRESSING UNLIKE MOST HISTORIANS MR HARDMAN CONCEDES THAT LOUIS WAS A COMPETENT FINANCIAL ANALYST WHO UNDERSTOOD CREDIT AND THE MARKETS BUT WHEN HE BEGAN IMPLEMENTING A SERIES OF REFORMS IN 1786 HE RAN RIGHT UP AGAINST BOTH THE PARLIAMENT AND THE ARISTOCRATIC CABAL THAT HAD DEVELOPED IN THE PRECEDING FEW YEARS UNLIKE SOME FASHIONABLE AUTHORS WHO ARGUE THAT THE REVOLUTION WAS CAUSED BY DELUDED LIBERAL ARISTOCRATS MR HARDMAN RIGHTLY PUTS THE BLAME ON REACTIONARY COURT GRANDEES AND THE NEWLY NOBLE THE INTRANSIGENCE OF THE RIGHT HE WRITES WAS AS BALEFUL AN INFLUENCE IN 1791 WHEN IT PREVENTED THE STRENGTHENING OF THE EXECUTIVE IN THE NEW CONSTITUTION AS IN 1789 WHEN IT PREVENTED A UNION OF LOUIS AND THE THIRD ESTATE THE MONARCHY WAS UNDONE BY THOSE REACTIONARIES WHO MOST PROFITED FROM IT BUT GREEDILY KEPT ASKING FOR MORE LOUIS HIMSELF KNEW THIS FROM 1787 ON HE SANK INTO A DEPRESSION THAT FURTHER CURTAILED HIS ALREADY LIMITED ABILITY TO EXPRESS HIMSELF THAT AND THE CONTEMPT SO OFTEN EXPRESSED FOR HIM BY MARIE ANTOINETTE HERSELF A WOMAN OF UNFATHOMABLE STUPIDITY HELPED TO CREATE THE MYTH OF THE BUMBLING INCOMPETENT INSTEAD AS MR HARDMAN SHOWS US THE KING WAS A TRAGIC HERO A MAN OVERWHELMED BY A CRUEL FATE FOR ALL THAT THERE WAS NO WHINING LOUIS FACED HIS TRIAL CONVICTION AND EXECUTION WITH THE COOLEST COURAGE DYING WAS WHAT BECAME HIM BEST BECAUSE IT WAS THE ONE MOMENT IN HIS LIFE WHEN HIS LACK OF AFFECT ACTUALLY MADE HIM LOOK GOOD MR BERNIER HAS WRITTEN BIOGRAPHIES OF LOUIS XIV AND LOUIS XV 9301250143 930125 WHO'S NEWS BLENHEIM GROUP PLC BLENHEIM GROUP PLC LONDON LAWRENCE C TUCKER MICHAEL FLETCHER AND MIGUEL ESCOBAR WERE NAMED DIRECTORS AT THIS ORGANIZER OF EXHIBITIONS AND PUBLISHER OF TRADE MAGAZINES INCREASING THE BOARD TO 14 MEMBERS MR TUCKER 50 YEARS OLD IS A PARTNER AND HEAD OF INVESTMENT BANKING AT BROWN BROTHERS HARRIMAN & CO A PRIVATE BANKING AND SECURITIES FIRM IN NEW YORK MR FLETCHER 47 IS MANAGING DIRECTOR OF BLENHEIM'S UNITED KINGDOM OPERATIONS MR ESCOBAR 58 IS PRESIDENT AND DIRECTOR GENERAL OF PROSEMA ORGANIZACION DE FERIAS SA A TRADE SHOW ORGANIZER IN SPAIN THAT IS A UNIT OF BLENHEIM 9301250142 930125 MALAYSIAN BANK STAKE IS INVESTMENT GOAL OF INFLUENTIAL GROUP KUALA LUMPUR MALAYSIA POLITICALLY WELLCONNECTED MALAYSIAN INVESTORS PLAN TO ACQUIRE A CONTROLLING INTEREST IN STATEOWNED UNITED MALAYAN BANKING CORP THE COUNTRY'S THIRDLARGEST LOCAL BANKING GROUP IN A COMPLEX 600 MILLION MALAYSIAN RINGGIT 2314 MILLION TRANSACTION AN OBSCURE MALAYSIAN COMPANY CALLED BAKTI KILAT SDN BHD INTENDS TO ACQUIRE 60 OF UMBC FROM PERBADANAN NASIONAL BHD OR PERNAS A STATE INVESTMENT COMPANY THAT CURRENTLY OWNS 857 OF THE BANK AS PART OF THE ARRANGEMENT BAKTI KILAT WILL BE ACQUIRED BY A RESTRUCTURED PUBLIC COMPANY DATUK KERAMAT HOLDINGS BHD GIVING UMBC AN INDIRECT LISTING ON THE KUALA LUMPUR STOCK EXCHANGE THE CENTRAL INVESTOR IN THE TRANSACTION IS POLITICIANTURNEDBUSINESSMAN DATUK MOHAMED NOOR YUSOF A FORMER POLITICAL SECRETARY TO PRIME MINISTER MAHATHIR MOHAMAD AND AN ALLY OF FINANCE MINISTER ANWAR IBRAHIM DATUK MOHAMED NOOR OWNS BAKTI KILAT AND STANDS TO BECOME THE LARGEST INDIVIDUAL SHAREHOLDER IN DATUK KERAMAT ALSO INVOLVED AS A PROSPECTIVE SHAREHOLDER IN DATUK KERAMAT IS KOPERASI USAHA BERSATU BHD AN INVESTMENT CONCERN CONTROLLED BY MEMBERS OF DR MAHATHIR'S RULING UNITED MALAYS NATIONAL ORGANIZATION THE PROPOSED UMBC SALE WHICH IS CONTINGENT ON A NUMBER OF GOVERNMENT APPROVALS COULD BREAK A CORPORATE STALEMATE THAT HAS IMPAIRED THE GROWTH OF UMBC AND SAPPED THE FINANCIAL STRENGTH OF PERNAS ITS CONTROLLING SHAREHOLDER BUT SOME SECURITIES ANALYSTS QUESTION THE YETTOBEDISCLOSED FINANCING PLANS FOR THE BANK ACQUISITION AND THE MANAGEMENT EXPERTISE OF UMBC'S PROSPECTIVE CONTROLLING SHAREHOLDERS THIS IS GENERALLY PERCEIVED IN THE MARKET AS A POLITICAL DEAL SAYS A KUALA LUMPURBASED BANK ANALYST WHO PREDICTS THAT INDEPENDENT INVESTORS WILL STEER CLEAR OF DATUK KERAMAT SHARES AS A BANKING PLAY UNTIL MORE IS KNOWN ABOUT ARRANGEMENTS FOR FINANCING THE UMBC ACQUISITION AND MANAGING THE BANK IN ANNOUNCING THE PROPOSED TRANSACTION LATE LAST WEEK DATUK KERAMAT'S FINANCIAL ADVISER BUMIPUTRA MERCHANT BANKERS BHD DIDN'T DETAIL HOW BAKTI KILAT OR ITS FINANCIERS WILL RAISE THE 600 MILLION RINGGITS REQUIRED FOR THE UMBC PURCHASE 9301250141 930125 PEUGEOT SEES ITS MARKET SHARE UP IN EUROPE FIRM PUTS FIGURE AT 13 FOR THIS YEAR CITING LAUNCH OF TWO MODELS SPECIAL TO THE WALL STREET JOURNAL PARIS PSA PEUGEOT CITROEN CHAIRMAN JACQUES CALVET SAID HE THINKS THE AUTOMOBILE CONCERN CAN EXPAND ITS MARKET SHARE IN EUROPE WHEN DEMAND IS SAGGING PEUGEOT'S SHARE OF THE EUROPEAN CAR MARKET WAS ABOUT FLAT LAST YEAR AT 122 COMPARED WITH 121 IN 1991 BUT MR CALVET TOLD A GROUP OF JOURNALISTS HE IS CONFIDENT THAT THE LAUNCH OF TWO MODELS WILL HELP BOOST THE GROUP'S MARKET SHARE TO AROUND 13 THIS YEAR SUCH AN OUTCOME WOULD BE A SIGNIFICANT ACHIEVEMENT IN A MARKET THAT IS EXPECTED TO CONTRACT 75 IN 1993 ACCORDING TO THE LATEST ESTIMATES BY THE ASSOCIATION OF EUROPEAN AUTOMOBILE MANUFACTURERS MR CALVET PLEDGED THAT 1993 WILL BE DIFFERENT FOR PEUGEOT ON THE FRENCH MARKET FROM 1992 WHEN THE GROUP'S MARKET SHARE DROPPED TO 304 FROM 331 A YEAR EARLIER HE SAID THAT WITH THE ADDITION OF THE TWO NEW MODELS THE PEUGEOT 306 AND THE CITROEN XANTIA THE GROUP SHOULD BE ABLE TO RAISE ITS SHARE ABOVE 32 MR CALVET SAID PEUGEOT IS MORE OPTIMISTIC THAN OTHER EUROPEAN AUTO MAKERS ABOUT THIS YEAR PERHAPS BECAUSE THE JUDGMENT OF AUTO MAKERS IN GERMANY AND ITALY TENDS TO BE COLORED BY THE GLOOMY PROSPECTS FOR THEIR DOMESTIC MARKETS HE SAID PEUGEOT'S OWN PROJECTION IS FOR A DECLINE OF 52 IN EUROPEAN CAR SALES THIS YEAR BUT HE CONCEDED THAT HE WOULDN'T BE TOO SURPRISED IF THE ACTUAL DECLINE IS AS MUCH AS TWO PERCENTAGE POINTS MORE DECEMBER'S EUROPEAN CAR REGISTRATION TOTALS WERE UNUSUALLY HIGH WITH BUYERS RUSHING TO BUY CARS BEFORE A TAX INCREASE IN GERMANY TOOK EFFECT AND AFTER A TAX CUT IN SPAIN FRENCH REGISTRATIONS WERE ALSO BUMPED UP ARTIFICIALLY AS CUSTOMERS TOOK ADVANTAGE OF A GOVERNMENT SUBSIDY FOR CARS EQUIPPED WITH CATALYTIC CONVERTERS WE'LL HAVE TO WAIT FOR THE FEBRUARY FIGURES TO GET A BETTER IDEA MR CALVET SAID EUROPEAN CAR MAKERS WILL SOON BE MEETING WITH THEIR JAPANESE COUNTERPARTS TO REVIEW A JULY 1991 AGREEMENT ON LIMITING IMPORTS OF JAPANESE CARS INTO THE EC THROUGH 1999 MR CALVET PREDICTED THAT THE TALKS WILL BE VERY COMPLICATED BECAUSE THE INITIAL ACCORD ASSUMED STEADY GROWTH IN THE EUROPEAN MARKET AT ABOUT 15 A YEAR THE INFORMAL PACT PROVIDED FOR TWICEYEARLY MARKET ASSESSMENTS AT WHICH CHANGES CAN BE MADE BY MEANS OF A FORMULA FOR ALLOCATING MARKET SHARE UNDER THE FORMULA NONEUROPEAN MANUFACTURERS ARE ENTITLED TO INCREASE THEIR IMPORTS BY AS MUCH AS TWOTHIRDS OF ANY GAINS IN THE OVERALL EC MARKET HOWEVER NONEUROPEAN MANUFACTURERS UNDER THE FORMULA MUST ABSORB THREEQUARTERS OF ANY CONTRACTION IN THE MARKET AN EC COMMISSION OFFICIAL WHO ASKED NOT TO BE IDENTIFIED SAID THE PEUGEOT CHIEF HAS ALWAYS DISTANCED HIMSELF FROM THAT ACCORD AND HE REAFFIRMED THAT JAPAN HAS A DIFFERENT INTERPRETATION OF THE AGREEMENT FROM THAT OF THE EUROPEANS IN JAPAN'S VIEW CARS MADE BY A JAPANESE COMPANY IN A TRANSPLANT CAR FACTORY IN EUROPE AREN'T IMPORTS BUT THE EUROPEANS HOLD THE OPPOSITE VIEW HE SAID MR CALVET SAID JAPANESE AUTO MAKERS ARE LIKELY TO TAKE A STRONG LINE IN THE TALKS BECAUSE DEMAND IN THE US AND JAPAN IS WEAK ALTHOUGH HE CONCEDED THAT THIS WOULD BE OUT OF CHARACTER HE WAS NONCOMMITTAL ON PEUGEOT'S EARNINGS FOR 1992 PEUGEOT'S FRENCH RIVAL RENAULT SA INDICATED RECENTLY THAT THE DEVALUATIONS OF THE POUND THE ITALIAN LIRA AND THE SPANISH PESETA COULD HAVE A NEGATIVE IMPACT OF THREE BILLION FRANCS 5498 MILLION ON ITS OPERATING MARGINS IN 1993 BUT MR CALVET SAID THE EFFECT WOULD BE CONSIDERABLY LESS FOR PEUGEOT MR CALVET ACKNOWLEDGED THAT EUROPEAN CAR MAKERS CURRENTLY HAVE A SIGNIFICANT AMOUNT OF UNUSED PRODUCTION CAPACITY HE SUGGESTED THAT MANUFACTURERS WILL BE JEOPARDIZING THEIR FUTURE IF THEY CONTINUE TO WAGE A PRICE WAR BECAUSE REDUCED MARGINS LEAVE NO ROOM FOR INVESTMENT HE CONFIRMED THAT PEUGEOT IS STUDYING THE IDEA OF FORMING A FORMULA ONE RACING TEAM AND IS TALKING TO INDUSTRIALISTS TO SEE WHETHER THEY'RE INTERESTED IN SHARING THE COSTS WHICH HE SAID WOULD RUN TO SEVERAL HUNDED MILLION FRANCS POTENTIAL PARTNERS INCLUDE OIL COMPANIES TIRE MAKERS AND OTHERS WITH CLOSE TIES TO THE AUTO INDUSTRY HE SAID A PARTNER WOULDN'T NECESSARILY HAVE TO BE FRENCH 9301250140 930125 WHO'S NEWS CRESTAR FINANCIAL CORP CRESTAR FINANCIAL CORP RICHMOND VA EUGENE P TRANI WAS NAMED A DIRECTOR AT THIS BANK HOLDING COMPANY THE APPOINTMENT OF MR TRANI PRESIDENT OF VIRGINIA COMMONWEALTH UNIVERSITY INCREASES THE BOARD TO 20 MEMBERS 9301250139 930125 PANEL STUDYING WAYS TO BROADEN ACCESS TO THAI STOCK ISSUES BANGKOK THAILAND'S SECURITIES AND EXCHANGE COMMISSION IS CONSIDERING MOVES THAT WOULD BROADEN FOREIGN INVESTORS' ACCESS TO THAI STOCKS DETAILS OF THE PLAN HAVE YET TO BE WORKED OUT AND HAVEN'T BEEN PRESENTED TO THE SEC'S BOARD BUT IN ITS BROAD OUTLINE THE PLAN WOULD MAKE IT EASIER FOR FOREIGNERS TO BUY SHARES BY GIVING THEM A WAY AROUND LIMITS ON FOREIGN SHAREHOLDINGS OF THAI COMPANIES ACCORDING TO SEC STAFF HOWEVER THE CHANGES COULD HURT FOREIGN INVESTORS WHO ALREADY ARE INVESTED IN THE THAI MARKET BY ELIMINATING THE PREMIUMS THEY HAVE PAID FOR THEIR SPECIALLY DESIGNATED SHARES IN THE LONGER TERM IT COULD BOOST THE OVERALL MARKET BY BROADENING ITS INVESTOR BASE UNDER CURRENT RULES FOREIGNERS MUST BUY SPECIALLY DESIGNATED SHARES THAT TOGETHER DON'T EXCEED FOREIGNOWNERSHIP LIMITS OF 49 OF A THAI COMPANY 25 FOR BANKS AND FINANCE COMPANIES SINCE DEMAND FOR THESE SHARES IS GREATER THAN SUPPLY THEY TRADE AT PREMIUMS TO SHARES OF THE SAME COMPANIES TRADED AMONG LOCAL INVESTORS THE PREMIUMS ARE USUALLY LESS THAN 10 THOUGH FOR MANY BLUECHIP ISSUES THEY CAN EXCEED 20 IN ADDITION THE SEC CAN'T JUST THROW OPEN THE MARKET TO FOREIGN INVESTORS BECAUSE DOING SO COULD CHANGE THE STATUS OF MANY COMPANIES UNDER THAI LAW WHICH TREATS FOREIGN AND DOMESTICALLY OWNED COMPANIES DIFFERENTLY BUT AUTHORITIES HAVE BEEN PRESSED BY FOREIGN INVESTORS TO OPEN THE MARKET TO GREATER OVERSEAS PARTICIPATION INDEED THE SEC REALIZES THAT SOME FOREIGNERS ALREADY ARE INVESTING IN LOCAL STOCKS ILLEGALLY THROUGH THAI NOMINEES EITHER TO BUY SHARES THAT WOULD OTHERWISE BE UNAVAILABLE TO THEM OR TO AVOID PAYING PREMIUMS FOR FOREIGNDESIGNATED SHARES A NEW PAPERLESS TRADING SYSTEM THAT THE STOCK EXCHANGE OF THAILAND IS INSTALLING COULD REVEAL MANY OF THOSE ILLEGAL INVESTORS IF THE SEC DOESN'T IMPLEMENT ITS PLANNED CHANGES SOON WE WANTED TO TRY TO FIND SOME WAY FOR THESE FUNDS OF FOREIGN INVESTORS TO LEGALLY BUY THESE SHARES SAID SEC SPOKESMAN RAPEE SUCHARITAKUL SEC STAFF ARE PROPOSING SETTING UP AN ENTITY THAT COULD ACT AS A TRUSTEE FOR FOREIGN INVESTORS HOLDING THEIR SHARES FOR THEM AND EXERCISING THEIR VOTING RIGHTS ALL DIVIDENDS AND OTHER BENEFITS OF STOCK OWNERSHIP WOULD GO TO THE FOREIGN SHAREHOLDER 9301250138 930125 WHO'S NEWS DNX CORP DNX CORP PRINCETON NJ GERALD MESSERSCHMIDT 43 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT MEDICAL AND REGULATORY AFFAIRS AT THIS DEVELOPER OF THERAPEUTIC PRODUCTS AND BIOLOGICAL TESTING SERVICESBASED TRANSGENIC ANIMAL TECHNOLOGY DR MESSERSCHMIDT HAD BEEN EXECUTIVE DIRECTOR OF MEDICAL AFFAIRS AT CIBAGEIGY PHARMACEUTICALS A UNIT OF CIBAGEIGY LTD A BASEL SWITZERLAND PHARMACEUTICAL AND CHEMICAL COMPANY 9301250137 930125 LEISURE & ARTS TELEVISION FROM JAN HUS TO BETTY FRIEDAN BY DOROTHY RABINOWITZ WHAT DO BETTY FRIEDAN AND FORMER 1960S ACTIVIST AND STUDENTS FOR A DEMOCRATIC SOCIETY CHAIRMAN TODD GITLIN HAVE IN COMMON WITH THE GREAT SPIRITS OF THE RENAISSANCE TUNE IN TO RENAISSANCE THE FIVEPART SERIES THAT BEGINS AIRING ON PBS TONIGHT 1011 PM CHECK LOCAL LISTINGS AND FIND OUT IT TOOK WE LEARN 10 YEARS TO PRODUCE THIS SERIES CREATED BY THEODORE K RABB AND BILL JERSEY NARRATED BY IAN RICHARDSON ENOUGH TIME FOR ITS PRODUCERS TO HAVE NOTICED ITS BLEAKLY COMIC ASPECTS DESPITE THAT UNINTENDED COMEDY IT SHOULD BE SAID THAT THIS PRODUCTION HAS ITS APPEALING SIDE AND A LOT MORE COULD HAVE BEEN SAID FOR IT IF IT WEREN'T SO CLEAR EARLY THAT THIS IS A PROGRAM THAT TELLS AS MUCH ABOUT THE DECLINE OF INTELLECTUAL DISCOURSE AT LEAST THE KIND THAT COMES POPPING OUT AT PUBLIC TELEVISION AUDIENCES AS ABOUT RENAISSANCE HISTORY TO WATCH THIS HANDSOMELY PRODUCED PROGRAM IS TO GLEAN A POWERFUL SENSE AS WELL OF THE KIND OF VIEWERS ITS CREATORS IMAGINE ARE OUT THERE WE ARE TALKING HERE ABOUT THE SAME PUBLIC TELEVISION AUDIENCES REGULARLY FLATTERED NEVER MORE THAN DURING PLEDGE WEEK WITH TESTIMONIALS TO THEIR TASTE THEIR DEVOTION TO CULTURE CONCERN WITH WEIGHTY ISSUES ETC STILL FROM THE LOOKS OF THINGS THE SERIES CREATORS SEEM TO HAVE BEEN UNABLE TO TRUST THIS VERY AUDIENCE VIEWERS LIKE YOU TO TAKE ITS HISTORY STRAIGHT MR RABB MR JERSEY AND COMPANY APPARENTLY DECIDED THAT TO MAKE HISTORY PALATABLE TO TV AUDIENCES HEAVY INFUSIONS OF UPTODATE PARALLELS AND COMMENTATORS WERE REQUIRED WE SHOULD BE THANKFUL PERHAPS THAT THE CREATORS REFRAINED FROM TITLING THIS SERIES THE RENAISSANCE AND YOU WE SHOULD ON THE OTHER HAND WORRY THAT THE PRODUCERS ACTUALLY BELIEVE IN THE PARALLELS THEY DRAW HERE BETWEEN RENAISSANCE FIGURES AND CERTAIN CHOICE AND MASTER SPIRITS OF OUR OWN TIMES ANYTHING IS POSSIBLE SIR KENNETH CLARK AND THE PRODUCERS OF CIVILISATION HIS PHENOMENAL SERIES ON WESTERN CIVILIZATION UNDERTOOK NO SIMILAR EFFORTS TO MAKE HISTORY ACCESSIBLE HE WROTE IT FOR AN ENGLISH AUDIENCE TO BE SURE BUT WHEN THE SERIES PLAYED TO AMERICAN PBS AUDIENCES IN 1969 ITS RECEPTION WAS FAR MORE ENTHUSIASTIC THAN ANY IT RECEIVED IN ENGLAND SO FAMOUS A CULTURE STAR DID THAT SERIES MAKE HIM IN THE US THAT SIR KENNETH WAS TO HIS ASTONISHMENT MOBBED DURING PUBLIC APPEARANCES HERE VIEWERS WHO KNOW WHEN THEY ARE GETTING THE REAL GOODS AS OPPOSED TO BEING CONDESCENDED TO ARE SIR KENNETH DISCOVERED A GRATEFUL LOT AND ALSO NOWADAYS AN INCREASINGLY STARVED ONE THE SERIES STARTING TONIGHT BEGINS WITH THE BEST OF THE FIVE SEGMENTS THE SCIENTIST IT FOLLOWS THE STRUGGLES OF GALILEO KEPLER PARACELSUS AND OTHER QUESTIONERS OF ESTABLISHED SCIENTIFIC BELIEF WITH CLARITY AND COLOR AND WITH A MINIMUM OF SPECIOUS COMMENTARY THAT MAY WELL BE BECAUSE THE COMMENTATORS HERE ARE SCIENTISTS PEOPLE LESS DISPOSED ON THE WHOLE TO MENTAL CONFUSION THAN MANY OF THEIR COUNTERPARTS IN WHAT IS LAUGHINGLY CALLED TODAY THE HUMANITIES THE COMMENTATORS IN PART ONE AT ANY RATE INCLUDE PROFESSORS OF ASTRONOMY SCIENCE AND BIOLOGY MOST OF THEM WITH INTERESTING THINGS TO SAY OR AT ANY RATE THINGS THAT WON'T GIVE ANY VIEWER CAUSE TO ROLL HIS EYES OR CRINGE COAUTHOR RABB A TEACHER OF HISTORY AT PRINCETON IS TYPICALLY LIVELY AND COGENT PART TWO THE DISSENTER PURPORTS TO TELL THE STORY OF CERTAIN ILLUSTRIOUS REBELS AGAINST CHURCH AUTHORITY JOHN WYCLIFFE JAN HUS MARTIN LUTHER HERE IS HUS IN HIS PRISON CELL HUS WHO IN 1415 WOULD BE BURNED AT THE STAKE AS A HERETIC A FRAME OR TWO LATER WE ARE FAR FROM THE MARTYR'S CELL IN THE LIVING ROOM OF MS FRIEDAN FOUNDER OF THE NATIONAL ORGANIZATION FOR WOMEN YOU CAN SEE THE CONNECTION THE AUTHOR OF THE FEMININE MYSTIQUE RIGHT UP THERE WITH WYCLIFFE AND HUS SHE WILL IN TIME DESCRIBE HOW SHE TREMBLED IN FEAR AS SHE WROTE HER ATTACKS ON THE ESTABLISHED ORDER THE ATMOSPHERE TAKES THERAFTER A SANER TURN WITH THE APPEARANCE OF FORMER SOLIDARITY ACTIVIST BRONISLAW GEREMEK SOON HOWEVER WE ARE BACK IN LALA LAND AND PRIVILEGED TO MEET UP WITH THE OTHER GREAT PERSONAGES THE PRODUCERS OBVIOUSLY THINK OF AS DISSENTERS IN THE TRADITION OF THE MARTYRED HUS WYCLIFFE AND LUTHER ENTER BERKELEY SOCIOLOGY PROFESSOR HARRY EDWARDS WHO ORGANIZED THE 1968 OLYMPIC BOYCOTT AND NOT LEAST MR GITLIN ANOTHER CAL FACULTY MEMBER KNOWN FOR HIS '60S ACTIVISM SOME OF US MAY OF COURSE HAVE TROUBLE GRASPING THE CONNECTION THE FILMMAKERS DRAW HERE BETWEEN THE REFORMATION LEADERS AND THEIR ALLEGED SPIRITUAL HEIRS MR EDWARDS MR GITLIN AND MS FRIEDAN ALL OF WHOM HAVE REAPED FOR THEIR DISSENT AGAINST THE ESTABLISHMENT SUCH PUNISHMENTS AS MEDIA STARDOM AND PROMINENT UNIVERSITY SINECURES WITH AN EASE THAT BESPEAKS A TRUE RENAISSANCE MAN MR GITLIN INDEED ACTUALLY COMPARES HIMSELF AND HIS '60S COMRADES TO LUTHER ONE OF THE OTHER MODERN GREAT DISSENTERS INTRODUCED HERE IS BRIAN WILLSON DESCRIBED AS A PROPEACE ACTIVIST MR WILLSON IT APPEARS DOES NOT APPROVE OF ARMAMENTS AND TRIED TO STOP A TRAINLOAD OF THEM FROM PASSING IN THE COURSE OF THIS FAILED ACTION HE LOST HIS FOOT TO THE CREATORS OF THIS SERIES APPARENTLY QUESTIONS OF MERIT AS REGARDS DISSENT ARE IRRELEVANT THOSE WHO TAKE RISKS FOR THEIR BELIEFS ARE IPSO FACTO HEROES BY THIS STANDARD WHY NOT INCLUDE JOHN WILKES BOOTH OR THE SURVIVALISTS HIDING OUT IN THE HILLS OR THE NEONAZIS THE PROGRAM HAS TO REPEAT VITS ADMIRABLE POINTS A SECTION TITLED THE ARTIST IS SUFFICIENTLY RICH IN THE SPLENDORS OF RENAISSANCE ART TO COMPENSATE FOR THE WEALTH OF POINTLESS COMMENTARIES NOTABLY FROM ARTIST ADRIAN PIPER TALKING SOCIOLOGISTSPEAK THE PART TITLED THE PRINCE ON THE OTHER HAND PROVIDES RICH PORTRAITS OF FLORENCE AND THE MEDICIS FOLLOWED BY SNIPPETS OF WISDOM FROM A MINDNUMBING RANGE OF COMMENTATORS INCLUDING FLORA LEWIS OF THE NEW YORK TIMES THE INFANTA DONA PILAR SISTER OF THE KING OF SPAIN AND FORMER US ATTORNEY GENERAL RAMSAY CLARK CURRENTLY A STAR OF THE POLITICAL LUNATIC FRINGE WHAT WISDOM YOU MIGHT ASK DO THEY IMPART IT'S HARD TO SAY THE FINAL SEGMENT IS TITLED THE WARRIOR AN HOUR DETAILING THE BIRTH OF MODERN WARFARE THAT SOON DEGENERATES WITH ONE OR TWO EXCEPTIONS INTO A STEW OF HIGHMINDED FATUITIES WHOSE GENERAL POINT SEEMS TO BE THAT WAR IS HELL COLONEL DAVID HACKWORTH AUTHOR AND MUCH DECORATED SOLDIER IS ON HAND HERE TO SAY THAT WE'VE GOT TO FIND ANOTHER WAY OF DOING THINGS THE SAME ADVICE MIGHT APPLY TO THE WRITERS AND PRODUCERS OF THIS SERIES 9301250136 930125 LUFTHANSA BROKE EVEN IN THE FOURTH QUARTER A NEWSLETTER REPORTS SPECIAL TO THE WALL STREET JOURNAL BONN GERMAN NATIONAL AIR CARRIER DEUTSCHE LUFTHANSA AG IN A SURPRISINGLY STRONG PERFORMANCE WILL BREAK EVEN IN THE FOURTH QUARTER ACCORDING TO THE GERMAN ECONOMIC AND POLITICAL NEWSLETTER DER PLATOW BRIEF IF SO THEN IT WILL SHOW THAT LUFTHANSA HAS BEEN ABLE TO EXTEND THE TREND FROM THE THIRD QUARTER WHEN THE COMPANY SAID IT APPROXIMATELY BROKE EVEN IN THE FIRST HALF LUFTHANSA POSTED A PRETAX LOSS OF 542 MILLION DEUTSCHE MARKS 3359 MILLION LUFTHANSA WHICH SAID ITS PASSENGER TRAFFIC IN 1992 CLIMBED 11 FROM 1991 ALSO HAS BEEN ABLE TO BOOST ITS PRODUCTIVITY AMONG CABIN PERSONNEL 16 SINCE THE IMPLEMENTATION OF A PROGRAM IN SEPTEMBER AT THE SAME TIME THE CARRIER HAS DRIVEN LOWER ITS COSTS FOR MATERIALS ALSO BOOSTING LUFTHANSA'S BOTTOM LINE IN THE LATEST QUARTER WAS THE SALE OF THE AIR CARRIER'S COLOGNE GERMANY HEADQUARTERS AND SEVERAL USED AIRCRAFT ALTHOUGH LUFTHANSA WOULDN'T DISCLOSE THE SALES PRICE OF THE REAL ESTATE OR THE AIRCRAFT THE COMPANY DID CONFIRM THAT THE MONEY RAISED WOULD LOWER ITS NET LOSSES FOR 1992 FROM THE YEAREARLIER LEVEL OF 444 MILLION MARKS HOWEVER THE AIR CARRIER DECLINED TO FORECAST ITS PRETAX OPERATING LOSS WHICH TOTALED 12 BILLION MARKS IN 1991 9301250135 930125 GROUP OFFERS BONDS PEGGED TO INFLATION FOR BRIDGE IN CANADA OTTAWA A CANADIAN CONSTRUCTION GROUP IS OFFERING ABOUT 600 MILLION CANADIAN DOLLARS US4669 MILLION OF INFLATIONINDEXED BONDS TO HELP FINANCE CONSTRUCTION OF A NINEMILE BRIDGE BETWEEN PRINCE EDWARD ISLAND AND CANADA'S MAINLAND THE GROUP STRAIT CROSSING INC IS 40OWNED BY SCI ENGINEERS & CONSTRUCTORS INC A PRIVATE CONCERN BASED IN CALGARY ALBERTA MORRISON KNUDSEN CORP OF BOISE IDAHO HOLDS 35 AND GTM ENTREPOSE OF FRANCE OWNS 25 CORPORATE OFFERINGS OF INFLATIONINDEXED BONDS ARE UNUSUAL BECAUSE OF THE RISKS INVOLVED IN A FINANCIAL COMMITMENT PEGGED TO AN UNPREDICTABLE INFLATION RATE BUT STRAIT CROSSING IS ABLE TO SHOULDER THE RISKS BECAUSE ITS BRIDGE REVENUE ALSO WILL BE ADJUSTED FOR INFLATION SAID DAVID PIRIE THE COMPANY'S SENIOR VICE PRESIDENT REVENUE INCLUDES AN ANNUAL PAYMENT FROM THE CANADIAN GOVERNMENT AND TOLLS THE GOVERNMENT'S INDEXED PAYMENTS WILL EQUAL THE SUBSIDIES IT IS CURRENTLY PAYING TO OPERATE A FERRY SERVICE BETWEEN THE ISLAND AND THE MAINLAND THE GOVERNMENT PAYMENT WILL INITIALLY TOTAL C42 MILLION A YEAR AND TOLLS ARE EXPECTED TO TOTAL ABOUT C15 MILLION TO C18 MILLION ANNUALLY RODNEY KERR PORTFOLIO MANAGER AT LAKETON INVESTMENT MANAGEMENT OF TORONTO PREDICTED THAT THE BONDS WILL APPEAL MAINLY TO PENSION FUNDS THAT NEED INFLATIONINDEXED REVENUE SOURCES TO MATCH PAYOUT COMMITMENTS OF INFLATIONINDEXED PENSION PLANS STRAIT CROSSING'S 40YEAR BONDS HAVE BEEN PRICED TO YIELD A REAL OR AFTERINFLATION RETURN OF 475 THE BONDS ARE BEING MARKETED BY GORDON CAPITAL CORP OF TORONTO THE BOND FINANCING IS EXPECTED TO MEET ABOUT 70 OF THE COSTS OF THE BRIDGE CONSTRUCTION IS TO START THIS SPRING AND COMPLETION IS SCHEDULED FOR 1997 9301250134 930125 WHO'S NEWS APPLE COMPUTER INC APPLE COMPUTER INC CUPERTINO CALIF IAN DIERY 44 YEARS OLD EXECUTIVE VICE PRESIDENT WORLDWIDE SALES AND MARKETING AND GERALD F FORSYTH 48 SENIOR VICE PRESIDENT MACINTOSH SYSTEMS DIVISION WERE NAMED TO THE COMPANY'S EXECUTIVE MANAGEMENT TEAM THIS TEAM AT THE PERSONAL COMPUTER MAKER IS THE PRINCIPAL EXECUTIVE COMMITTEE THAT SETS APPLE'S STRATEGIC DIRECTION OTHER MEMBERS INCLUDE JOHN SCULLEY CHAIRMAN CHIEF EXECUTIVE OFFICER AND CHIEF TECHNOLOGY OFFICER MICHAEL SPINDLER PRESIDENT AND CHIEF OPERATING OFFICER AND JOSEPH GRAZIANO CHIEF FINANCIAL OFFICER 9301250133 930125 GM'S EDS BRITISH TELECOM ARE SAID TO TALK BY MICHAEL ALLEN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DALLAS ELECTRONIC DATA SYSTEMS CORP GENERAL MOTORS CORP'S TECHNOLOGY UNIT IS IN TALKS WITH BRITISH TELECOMMUNICATIONS PLC ABOUT A JOINT BUSINESS ARRANGEMENT THAT MIGHT INVOLVE THE SALE OF EDS STOCK TO THE BRITISH GIANT A PERSON FAMILIAR WITH THE SITUATION SAID THE NEGOTIATIONS WHICH APPEAR TO BE IN A PRELIMINARY STAGE UNDERSCORE EDS'S WISH TO BECOME MORE CLOSELY LINKED WITH A BIG TELECOMMUNICATIONS COMPANY THE SALE OF STOCK MEANWHILE WOULD HELP RAISE CASH FOR EDS'S EMBATTLED CORPORATE PARENT HOWEVER GM SENIOR EXECUTIVES HAVE SAID REPEATEDLY THAT AN OUTRIGHT SALE OF EDS IS OUT OF THE QUESTION BECAUSE THE UNIT IS A CORE BUSINESS OF THE AUTO MAKER A SALE MIGHT ALSO STICK GM WITH A BIG TAX LIABILITY BECAUSE OF EDS'S STRONG GROWTH SINCE GM PURCHASED IT IN 1984 ANALYSTS SAID A MORE LIKELY SCENARIO WOULD BE FOR GM TO SELL SOME OF ITS HOLDINGS OF GM CLASS E COMMON SHARES WHICH REPRESENT AN INTEREST IN DIVIDENDS TIED TO EDS EARNINGS CURRENTLY GM OWNS ABOUT 40 OF THE CLASS E SHARES OUTSTANDING AN EDS SPOKESMAN DECLINED TO COMMENT ON THE NEGOTIATIONS FIRST REPORTED BY THE DALLAS MORNING NEWS SAYING WE DON'T COMMENT ON RUMORS A BRITISH TELECOM OFFICIAL ALSO DECLINED TO COMMENT IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY GM'S CLASS E SHARES CLOSED AT 34 UP 225 EACH OR 7 FOR EDS A LIAISON WITH A TELECOMMUNICATIONS COMPANY WOULD ADD A NEW ELEMENT TO THE SYSTEMSINTEGRATION SERVICES AND BACKOFFICE COMPUTING SUPPORT IT PROVIDES ITS CLIENTS AS THE DISTINCTION BETWEEN COMPUTING AND COMMUNICATIONS CONTINUES TO DISSOLVE EDS OFFICIALS HAVE SAID A STRATEGIC PARTNERSHIP WITH THE LIKES OF AMERICAN TELEPHONE & TELEGRAPH CO OR BRITISH TELECOM WOULD HELP THE COMPANY CONTINUE ITS FASTPACED GROWTH INDEED AS LONG AGO AS 1986 GM HELD TALKS WITH AT&T ABOUT SELLING A STAKE IN EDS BUT THOSE TALKS BROKE DOWN AND WERE SOON OVERSHADOWED BY GM'S MESSY DIVORCE WITH EDS FOUNDER ROSS PEROT MORE RECENTLY EDS OFFICIALS HAVE TALKED WITH SEVERAL MAJOR TELECOMMUNICATIONS COMPANIES INCLUDING AT&T AND NIPPON TELEGRAPH & TELEPHONE CORP OF JAPAN GM ALSO HAS DEMONSTRATED ITS WILLINGNESS TO REDUCE ITS HOLDING OF GM CLASS E SHARES IN THE INTEREST OF RAISING CASH LAST FEBRUARY THE AUTO MAKER SOLD 15 BILLION OF PREFERENCE STOCK THAT COULD BE CONVERTED INTO AS MANY AS 21 MILLION GM CLASS E SHARES NOW HELD IN THE GM TREASURY BUT EDS'S RECENT STRONG PERFORMANCE A BRIGHT SPOT IN GM'S BLEAK FINANCIAL PICTURE MILITATES AGAINST A SALE OF THE UNIT IN THE FIRST NINE MONTHS OF 1992 EDS NET INCOME ROSE ALMOST 17 TO 4575 MILLION FROM 3916 MILLION A YEAR EARLIER 9301250132 930125 PETROCHEMICAL PLANT IS PLANNED CARACAS VENEZUELA PEQUIVEN A PETROLEOS DE VENEZUELA SA OR PDVSA AFFILIATE SIGNED AN AGREEMENT WITH BANKS LED BY THE ANDEAN DEVELOPMENT CORP CHEMICAL BANK AND BANCA COMMERCIALE ITALIANA TO BUILD A PETROCHEMICAL PLANT THE OFFICIAL NEWS AGENCY VENPRES REPORTED THE AGREEMENT COVERS 218 MILLION OF THE 360 MILLION PROJECTED INVESTMENT FOR THE PLANT IN EASTERN ANZOATEGUI STATE THE PROJECT CALLED SUPERMETHANOL WILL PRODUCE 670 TONS OF PETROCHEMICALS ANNUALLY WHEN IT OPENS IN 1995 IT IS PART OF THE SAN JOSE PETROCHEMICAL COMPLEX BEING DEVELOPED BY PDVSA THE AGREEMENT BRINGS TOGETHER PEQUIVEN ITALY'S ECOFUEL CHEMICAL BANK AND BANCA COMMERCIALE ITALIANA THE FIRST TWO PARTNERS WILL HOLD 345 EACH OF THE SHARES WHILE THE OTHER TWO WILL HOLD 155 EACH ICI DAUYMCKEE WILL PROVIDE THE BASIC TECHNOLOGY FOR THE PLANT VENPRES SAID ITALIAN ENGINEERING FIRMS SNAM PROGETTI AND TECNOCONSULT WILL CARRY OUT THE CONSTRUCTION PLANS ACCORDING TO THE REPORT THE OPERATION IS ONE OF THE MOST IMPORTANT SIGNED SO FAR BY THE ANDEAN DEVELOPMENT CORP THE FINANCIAL ARM OF THE ANDEAN GROUP MADE UP OF VENEZUELA BOLIVIA COLOMBIA ECUADOR AND PERU TO PROMOTE ECONOMIC INTEGRATION AMONG THE FIVE NATIONS 9301250131 930125 WHO'S NEWS TCS ENTERPRISES RESIGNATIONS SAN DIEGO TCS ENTERPRISES INC A FINANCIAL SERVICES CONCERN SAID THREE PEOPLE RESIGNED FROM ITS BOARD THE COMPANY GAVE NO REASONS FOR THE DEPARTURES OF FRANK W DEVORE 63 YEARS OLD RICHARD P TORYKIAN 52 AND FOUNDER TOM C STICKEL 42 THEIR RESIGNATIONS REDUCE THE BOARD'S MEMBERSHIP TO NINE MR STICKEL WAS FORMERLY CHAIRMAN AND PRESIDENT BUT RESIGNED LAST AUGUST AFTER MARIO A ROSAS ACQUIRED A CONTROLLING BLOCK OF THE COMPANY'S STOCK AND SUCCEEDED MR STICKEL IN THE TWO POSITIONS MR ROSAS 39 OWNED 67 OF TCS STOCK AS OF AUGUST MR ROSAS DECLINED TO ANSWER QUESTIONS ABOUT THE DEPARTURES NONE OF THE THREE DEPARTING DIRECTORS COULD BE REACHED FOR COMMENT 9301250130 930125 BUSINESS BRIEF ULTIMATE CORP FISCAL 3RDQUARTER CHARGES WILL INCREASE BY 4 MILLION ULTIMATE CORP SAID IT WILL TAKE A FURTHER 4 MILLION IN FISCAL THIRDQUARTER CHARGES ON TOP OF THE 118 MILLION CHARGE PREVIOUSLY REPORTED AS THE COMPANY STRUGGLES TO RESTRUCTURE DEBT ULTIMATE SAID IT WILL TAKE A 15 MILLION CHARGE FOR VACATING FACILITIES IN ADDITION TO ITS HEADQUARTERS FACILITY THE COMPANY GAVE UP THAT FACILITY AS PART OF THE RESTRUCTURING OF ITS DEBT WITH CHASE MANHATTAN BANK THE COMPANY BASED IN EAST HANOVER NJ ALSO SAID IT WILL RESERVE 25 MILLION FOR REVALUING CERTAIN ASSETS THE QUARTER ENDS SUNDAY IN THE YEAREARLIER QUARTER ULTIMATE HAD A NET LOSS OF 57 MILLION OR 62 CENTS A SHARE ULTIMATE SAID IT IS NOT LEAVING ITS TRADITIONAL BUSINESSES WHICH INCLUDE THE RESALE OF PREMIER BRAND COMPUTER HARDWARE PLATFORMS WITH ULTIMATE'S SYSTEMLEVEL SOFTWARE AND DATABASE MANAGEMENT PRODUCTS 9301250129 930125 ABB UNIT GETS SWEDISH ORDER ZURICH ABB GROUP SAID ITS SWEDISH RAIL EQUIPMENT MANUFACTURING UNIT SIGNED A 140 MILLION CONTRACT TO DELIVER 14 X2000 MODEL HIGHSPEED TRAINS TO SWEDISH STATE RAILWAYS EACH TRAIN INCLUDES ONE POWER CAR WITH DRIVER'S CAB AND THREE PASSENGER CARS DELIVERY IS SCHEDULED TO BEGIN IN THE SPRING OF 1994 THE CONTRACT ALSO INCLUDES AN OPTION FOR 15 TRAINS 9301250128 930125 WHAT'S NEWS WORLDWIDE CLINTON SEARCHED FOR A NEW ATTORNEY GENERAL NOMINEE TO REPLACE BAIRD THE PRESIDENT MET WITH HIS ADVISERS TO GO OVER RECOMMENDATIONS FOR ATTORNEY GENERAL FOLLOWING FRIDAY'S WITHDRAWAL OF NOMINEE ZOE BAIRD AMID A PUBLIC UPROAR OVER HER HIRING OF ILLEGAL ALIENS CLINTON'S SPOKESMAN SAID THE PRESIDENT WOULD LOOK FOR THE BEST CANDIDATE ADDING IT COULD BE A WOMAN BUT NOT NECESSARILY SOME AIDES WERE STILL SEEKING THE APPOINTMENT OF A WOMAN OR A MINORITY CLINTON'S ORIGINAL TOP CHOICE JUDGE PATRICIA WALD WHO HAD DECLINED TO BE CONSIDERED WOULD ACCEPT THE NOMINATION THIS TIME ACCORDING TO FRIENDS IRAQ DENIED FIRING ON US WARPLANES AND SAID A CEASEFIRE STANDS BAGHDAD'S STATEMENTS CAME A DAY AFTER AMERICAN AIRCRAFT ATTACKED IRAQI MISSILE SITES FOR THE THIRD STRAIGHT DAY AN IRAQI FOREIGN MINISTRY AIDE SAID US ATTACKS IN THE NORTHERN AND SOUTHERN NO FLY ZONES HAVE BEEN UNPROVOKED IN WASHINGTON DEFENSE SECRETARY ASPIN SAID THERE IS SOME INDICATION THAT IRAQ'S MILITARY IS MOVING SURFACETOAIR MISSILES INTO SOUTHERN IRAQ IRAQ'S INFORMATION MINISTER URGED PRAGMATIC BUSINESSLIKE DISCUSSIONS WITH THE US AND IRAQI NEWSPAPERS CALLED FOR A DIALOGUE WITH CLINTON CLINTON OVERTURNED GOVERNMENT BANS ON ABORTION COUNSELING AT FEDERALLY FINANCED CLINICS ABORTIONS AT MILITARY HOSPITALS FEDERALLY FINANCED RESEARCH USING FETAL TISSUE AND US FUNDING OF OVERSEAS FAMILYPLANNING PROGRAMS HE ALSO ORDERED A REVIEW OF THE GOVERNMENT'S PROHIBITION ON THE PRIVATE IMPORTATION OF A FRENCH ABORTION PILL THE PRESIDENT ALSO ON FRIDAY ABOLISHED FORMER VICE PRESIDENT QUAYLE'S COMPETITIVENESS COUNCIL WHICH CLINTON HAD CRITICIZED AS A BACKDOOR CHANNEL FOR COMPANIES TO SIDESTEP ENVIRONMENTAL REGULATIONS VICE PRESIDENT GORE'S STAFF WAS WORKING ON PROPOSALS TO REPLACE THE COUNCIL WITH A DIFFERENT REVIEW PROCESS FBI CHIEF SESSIONS IS COUNTERATTACKING IN A BID TO KEEP HIS JOB AFTER ACCUSATIONS OF ETHICS VIOLATIONS IN A MEMORANDUM PREPARED BY HIS LAWYERS SESSIONS CLAIMS THAT A JUSTICE DEPARTMENT REPORT ON THE ALLEGATIONS IS INACCURATE INCOMPLETE AND MISLEADING DEFENSE SECRETARY ASPIN SAID CLINTON WILL FULFILL HIS CAMPAIGN PLEDGE TO LIFT THE BAN ON HOMOSEXUALS IN THE MILITARY BUT STRESSED THAT THE POLICY MUST BE NEGOTIATED WITH THE ARMED FORCES TO AVOID A REVOLT WHITE HOUSE SPOKESMAN STEPHANOPOULOS SAID CLINTON WOULD MEET TODAY WITH THE JOINT CHIEFS OF STAFF FOR A FULL DISCUSSION OF THE ISSUE YUGOSLAV PRESIDENT COSIC JOINED BOSNIAN SERB LEADER KARADZIC IN ACCUSING CROATS OF SABOTAGING GENEVA PEACE TALKS BY STAGING FRIDAY'S ASSAULT ON SERB FORCES IN CROATIA RUSSIA A TRADITIONAL SERB ALLY WAS EXPECTED TO PUSH FOR A UN SECURITY COUNCIL RESOLUTION CONDEMNING CROATIA WINNIE MANDELA LAUNCHED A BID FOR POWER IN THE AFRICAN NATIONAL CONGRESS BY ACCUSING ITS LEADERS INCLUDING HER ESTRANGED HUSBAND NELSON MANDELA OF FAILING TO HELP BLACKS IN SOUTH AFRICA SEPARATELY THE ANC SAID IT WOULD BEGIN A CAMPAIGN TODAY TO MOBILIZE POLITICAL SUPPORT NEARLY 400 EXPELLED PALESTINIANS SAID THEY WERE HEARTENED BY ISRAEL'S DECISION TO ALLOW 17 OF THEIR COLLEAGUES TO RETURN HOME FROM SOUTH LEBANON ON SATURDAY LEADERS OF THE DEPORTEES ARGUED THAT ISRAEL SHOULD NOW BACK DOWN ON THE ENTIRE EXPULSION ORDER THE ISRAELI HIGH COURT IS EXPECTED TO RULE ON THE DEPORTATIONS THIS WEEK THE US WARNED UNITA REBELS NOT TO SEIZE ANGOLA'S CABINDA OIL FIELDS CITING THE PRESENCE THERE OF US FACILITIES AND PERSONNEL A GUERRILLA RADIO BROADCAST HAD SAID UNITA MIGHT ATTACK OFFSHORE OIL PLATFORMS WITH THE AID OF SEPARATISTS CABINDA ACCOUNTS FOR THE BULK OF THE AFRICAN COUNTRY'S OIL OUTPUT A TURKISH JOURNALIST WAS KILLED WHEN A BOMB PLANTED UNDER HIS CAR EXPLODED AND THREE ISLAMIC GROUPS CLAIMED RESPONSIBILITY FOR THE SLAYING UGUR MUMCU A COLUMNIST FOR AN ISTANBUL NEWSPAPER HAD BEEN AN OUTSPOKEN CRITIC OF FUNDAMENTALISM AND KURDISH SEPARATISM PRIME MINISTER DEMIREL VOWED TO FIND THE ASSASSINS DIED THURGOOD MARSHALL 84 RETIRED SUPREME COURT JUSTICE WHO BECAME THE FIRST BLACK TO SERVE ON THE HIGH COURT AFTER A CAREER AS A PROMINENT CIVIL RIGHTS ATTORNEY IN BETHESDA MD OF A HEART ATTACK 9301250127 930125 DIVIDEND NEWS HOMESTAKE MINING CO HOMESTAKE MINING CO SAID IT CUT ITS QUARTERLY DIVIDEND TO 2 1/2 CENTS A SHARE FROM FIVE CENTS PAYABLE FEB 17 TO STOCK OF RECORD FEB 3 THE MINING CONCERN IN SAN FRANCISCO CITED ITS SUBSTANTIAL LOSSES OF THE PAST TWO YEARS WHICH IT SAID WERE DUE PRINCIPALLY TO CONTINUED LOW GOLD PRICES AND WRITEDOWNS OF ASSETS 9301250126 930125 ASIAN DEVELOPMENT BANK BONDS THE ISSUE BEARS A COUPON RATE OF 5 PER YEAR PAYABLE ANNUALLY THE OFFERING PRICE WAS 9965 THE ISSUE WILL BE LISTED ON THE LUXEMBOURG STOCK EXCHANGE THE BANK SAID PROCEEDS OF THE ISSUE WILL BE INCLUDED IN ITS ORDINARY CAPITAL RESOURCES THIS IS THE ADB'S SEVENTH EXTERNAL YEN BOND ISSUE 9301250125 930125 PEPPERAND SALT NAMES RUN IN CYCLES WE OBSERVE AND OTHER SOBRIQUETS IN STYLE THE GRAND OLD HANDLES ARE PASSE OUR NAMES MUCH LIKE OUR CLOTHING DATE US THE SIDE EFFECTS 9301250124 930125 FRENCH CONSUMPTION REBOUNDS PARIS FRENCH HOUSEHOLD CONSUMPTION OF MANUFACTURED GOODS REBOUNDED STRONGLY IN DECEMBER THOUGH THE RESULT FOR THE FOURTH QUARTER AS A WHOLE WAS NEARLY FLAT THE NATIONAL INSTITUTE OF STATISTICS AND ECONOMIC STUDIES SAID DECEMBER CONSUMPTION GAINED 54 SWINGING BACK FROM A 36 NOVEMBER DECLINE THE INSTITUTE SAID AUTO PURCHASES ALONE ACCOUNTED FOR ROUGHLY 40 OF THE DECEMBER GROWTH A BREAKDOWN OF THE DECEMBER DATA SHOWED THAT DURABLEGOODS CONSUMPTION SHOT UP 11 MAINLY REFLECTING THE SHARP RISE IN AUTO SALES DECEMBER AUTO REGISTRATIONS TOTALED 215000 UP FROM 172800 IN NOVEMBER THE NATIONAL INSTITUTE LINKED THE RISE TO CHANGES IN TAX AND ENVIRONMENTAL REGULATIONS THAT PROMPTED CAR PURCHASES AT THE END OF 1992 9301250123 930125 FIFTH THIRD ACQUISITION CINCINNATI FIFTH THIRD BANCORP SAID IT COMPLETED ITS PURCHASE OF THREE BRANCH OFFICES OF SAVINGS OF AMERICA IN OHIO THE ACQUISITION ANNOUNCED IN AUGUST ENCOMPASSES ALL DEPOSITS AND ASSETS OF OFFICES IN CHILLICOTHE FREMONT AND OXFORD OHIO REGULATORY APPROVAL WAS RECEIVED DEC 20 FIFTH THIRD SAID SAVINGS OF AMERICA IS A UNIT OF HOME SAVINGS OF AMERICA THE PRINCIPAL UNIT OF HF AHMANSON & CO A SAVINGS AND LOAN HOLDING COMPANY BASED IN IRWINDALE CALIF FIFTH THIRD A BANK HOLDING COMPANY HAS ASSETS OF 102 BILLION 9301250122 930125 INTERNATIONAL OIL COMPANIES PROPOSE STANDARDS TO PREVENT SPILLS SPECIAL TO THE WALL STREET JOURNAL BRUSSELS HOPING TO HEAD OFF NEW EUROPEWIDE RESTRICTIONS ON TANKERS OIL COMPANIES FRIDAY PROPOSED MORE FREQUENT INSPECTIONS AND BETTER TRAINING TO PREVENT SPILLS THE OIL COMPANIES INTERNATIONAL MARINE FORUM A GROUP OF 34 COMPANIES INVOLVED IN SHIPPING AND HANDLING OF OIL GAS AND PETROCHEMICALS URGED EUROPEAN COMMUNITY GOVERNMENTS TO REFRAIN FROM EXCESSIVE REACTIVE AND POORLY CONSIDERED REGULATION IT SAID SAFETY IS BEST ENSURED BY STRICT ENFORCEMENT OF INTERNATIONALLY ACCEPTED STANDARDS WORKED OUT WITH THE INDUSTRY AFTER THE TANKER BRAER RAN AGROUND JAN 5 IN A STORM AND SPILLED 22 MILLION GALLONS OF CRUDE OFF THE SHETLAND ISLANDS THE EC COMMISSION AND GOVERNMENTS SAID THEY WOULD CONSIDER WAYS TO IMPROVE TANKER SAFETY LAST THURSDAY THE EUROPEAN PARLIAMENT CALLED ON THE COMMISSION TO PROPOSE A BAN ON ALL TANKERS MORE THAN 15 YEARS OLD THE OIL INDUSTRY FORUM SAID SUCH A BAN WOULD BE UNNECESSARILY COSTLY SINCE NOT ALL OLD TANKERS ARE UNSAFE THOUGH MANY ARE POORLY MAINTAINED WHAT WE'VE GOT TO DO IS IDENTIFY THOSE SUBSTANDARD SHIPS AND DO SOMETHING ABOUT THEM SAID ED BALL THE DIRECTOR OF THE LONDONBASED GROUP THE GROUP ALSO SAID IT SHOULD BE RECOGNIZED THAT 80 OF TANKER CASUALTIES ARE ATTRIBUTED TO HUMAN ERROR EC TRANSPORT AND ENVIRONMENT MINISTERS ARE SCHEDULED TO MEET TODAY TO DISCUSS POSSIBLE REGULATORY MEASURES TO PREVENT FUTURE ACCIDENTS 9301250121 930125 FINANCING BUSINESS JACKPOT ENTERPRISES INC JACKPOT ENTERPRISES INC SAID IT CALLED FOR REDEMPTION OF 5512000 FACE AMOUNT OF ITS OUTSTANDING 875 CONVERTIBLE SUBORDINATED DEBENTURES DUE MAY 1 2014 THE DEBENTURES WILL BE REDEEMED ON FEB 25 AT 106125 OF THE FACE AMOUNT PLUS ACCRUED INTEREST FROM NOV 1 1992 TO FEB 25 1993 IF THE DEBENTURES AREN'T CONVERTED INTO ONE CENT PAR VALUE COMMON STOCK BY THE CLOSE OF BUSINESS FEB 24 IF THE DEBENTURES ARE CONVERTED THE DEBENTUREHOLDERS WILL PARTICIPATE IN A SPECIAL ONE CENT DIVIDEND DECLARED BY THE LAS VEGAS COMPANY WHICH WILL BE PAID FEB 25 9301250120 930125 BOLAR EXCHAIRMAN GETS JAIL TERM FINE FOR DRUGTEST FRAUD BALTIMORE A FEDERAL JUDGE SENTENCED THE FORMER CHAIRMAN OF GENERIC DRUG MAKER BOLAR PHARMACEUTICAL CO TO FIVE YEARS IN PRISON AND FINED HIM 125 MILLION FOR CONSPIRING TO DEFRAUD FEDERAL REGULATORS IN BOLAR'S DRUGAPPROVAL APPLICATIONS ROBERT SHULMAN 59 YEARS OLD WHO ALSO WAS PRESIDENT AND CHIEF EXECUTIVE OF BOLAR PLEADED GUILTY IN 1991 TO DIRECTING COMPANY CHEMISTS TO TEST SAMPLES OF BRANDNAME DRUGS AND SUBMIT THE TEST RESULTS AS THOSE OF BOLAR GENERICEQUIVALENT DRUGS IN ORDER TO WIN PRODUCT APPROVAL THE US ATTORNEY'S OFFICE FOR MARYLAND ALSO CHARGED THAT MR SHULMAN KEPT FALSE TESTING RECORDS DESTROYED TESTING SAMPLES AND RECORDS AND LIED TO THE FOOD AND DRUG ADMINISTRAION THE SENTENCE WAS THE EIGHTH IMPOSED ON FORMER BOLAR OFFICIALS IN A CONTINUING INVESTIGATION INTO THE GENERIC DRUG INDUSTRY SO FAR 30 INDIVIDUALS AND NINE COMPANIES HAVE PLEADED OR BEEN FOUND GUILTY OF FRAUD AND CORRUPTION CHARGES AS PART OF THE PROBE BOLAR BASED IN COPIAGUE NY WAS FINED 10 MILLION IN MARCH 1991 IN CONNECTION WITH THE DRUGAPPROVAL SCANDAL MR SHULMAN HAS ALSO COOPERATED WITH THE JUSTICE DEPARTMENT ON AN INVESTIGATION OF PRICEFIXING IN THE GENERIC GRUG INDUSTRY HE RECEIVED A 21MONTH SENTENCE AFTER PLEADING GUILTY TO ANTITRUST VIOLATIONS THE FIRST SENTENCE TO RESULT FROM THAT INVESTIGATION FEDERAL PROSECUTORS SAID IT WASN'T CLEAR IF THAT SENTENCE WAS CONCURRENT WITH THE FIVEYEAR TERM AND OFFICIALS OF THE US ATTORNEY'S OFFICE IN BALTIMORE COULDN'T BE REACHED LATE FRIDAY 9301250119 930125 TECHNOLOGY INACOM'S EARNINGS SHOW 73 INCREASE FOR FOURTH QUARTER OMAHA NEB INACOM CORP GENERATING HIGHER PROFIT MARGINS DESPITE THE PRICE WARS IN PERSONAL COMPUTERS SAID ITS NET INCOME FOR THE FOURTH QUARTER ROSE 73 TO 39 MILLION OR 45 CENTS A SHARE FROM 23 MILLION OR 26 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 10 TO 2772 MILLION FROM 2526 MILLION THE LATEST NUMBERS PROVIDED THE FIRST YEARTOYEAR QUARTERLY COMPARISON SINCE THE AUGUST 1991 MERGER OF VALCOM INC AND INACOMP COMPUTER CENTERS INC THE COMPANY'S STOCK CLOSED AT 21 UP 1 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY SINCE THE BEGINNING OF THE YEAR WHEN IT TRADED AS LOW AS 14 A SHARE THE STOCK HAS SOARED 50 ANALYSTS SAID THE EARNINGS WERE IN LINE WITH ESTIMATES OF 45 CENTS TO 48 CENTS A SHARE BENNY LORENZO AN ANALYST WITH THE INVESTMENT MANAGEMENT FIRM OF PAW PARTNERS IN GREENWICH CONN SAID THE STOCK REACTED POSITIVELY BECAUSE THEIR MARGINS HAVE BEEN EXPANDING WHICH IS VERY MUCH A RARITY IN THIS INDUSTRY HE SAID THE MARKET WAS ALSO RESPONDING TO INACOM'S RECENT ACQUISITION OF SEARS BUSINESS CENTER WHICH WAS RUMORED TO BE UNPROFITABLE BUT TURNED OUT TO BE SLIGHTLY PROFITABLE FOR THE YEAR ENDED DEC 26 INACOM'S NET MORE THAN TRIPLED TO 107 MILLION OR 125 A SHARE FROM 34 MILLION OR 56 CENTS A SHARE IN 1991 SALES GREW 48 TO 101 BILLION IN 1992 FROM 6804 MILLION MR LORENZO SAID THAT THE OUTLOOK FOR INACOM THIS YEAR IS GOOD AND THAT THE COMPANY COULD EARN 175 TO 2 A SHARE IN 1993 9301250118 930125 GLOBAL VIEW MILITARY CUTBACKS WILL CRIMP US FOREIGN POLICY BY GEORGE MELLOAN IN 1982 FORMER SECRETARY OF STATE HENRY KISSINGER TOLD A WASHINGTON GROUP THAT THE 1980S ARE THE FIRST DECADE IN WHICH THE UNITED STATES HAS TO CONDUCT FOREIGN POLICY AS OTHER NATIONS HAVE HAD TO CONDUCT FOREIGN POLICY THROUGHOUT THEIR HISTORY IN OTHER WORDS THE US BECAUSE OF ITS DIMINISHED ECONOMIC AND MILITARY STRENGTH WOULD HAVE TO BECOME FOXIER IT SHOULD DRAW LESSONS FROM THE WAY BRITAIN PROTECTED ITSELF FOR CENTURIES BY SIDING WITH ONE COUNTRY OR ANOTHER TO MAINTAIN A BALANCE OF POWER ON THE EUROPEAN CONTINENT LET'S LEAVE ASIDE SOME POLITICAL SCIENTISTS' CRITICISMS OF MR KISSINGER'S BALANCEOFPOWER THEORIES SUFFICE IT TO SAY THAT EVEN A FOXY BRITAIN DIDN'T HEAD OFF WORLD WAR I AND ITS 1939 SEQUEL THE MORE INTERESTING POINT IS THAT MR KISSINGER WAS MERELY PREMATURE BY ABOUT A DECADE PRESIDENT CLINTON AND SECRETARY OF STATE WARREN M CHRISTOPHER SHOULD DIG UP A YELLOWED COPY OF WHAT MR KISSINGER SAID AT THE GEORGETOWN CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN 1982 THEY MIGHT GET SOME POINTERS ON HOW THEY WILL HAVE TO CONDUCT FOREIGN POLICY IF THE US CONTINUES ON ITS CURRENT PATH OF UNILATERAL DISARMAMENT AND WITHDRAWAL OF MILITARY FORCES FROM POSTINGS ABROAD FOR THE WORLD AS A WHOLE THERE IS ANOTHER QUESTION WOULD US FOXINESS BE AN ADEQUATE SUBSTITUTE FOR REAL POWER THE KISSINGER REMARKS WERE PREMATURE IN 1982 BECAUSE RONALD REAGAN ALREADY HAD EMBARKED ON REBUILDING US MILITARY STRENGTH DEFENSE SPENDING CLIMBED TO A PEAK OF NEARLY 26 OF THE FEDERAL BUDGET AND 63 OF GROSS DOMESTIC PRODUCT BY 1986 WHILE 63 DOESN'T LOOK LIKE MUCH IT REVITALIZED US FORCES AND YIELDED UP NEW WEAPONS AND MILITARY TECHNOLOGIES THAT WERE FAR SUPERIOR TO ANYTHING THAT COULD BE FIELDED BY THE SOVIET UNION A MILITARY STATE THAT WAS RUNNING ITSELF BANKRUPT WITH ITS ENORMOUS WEAPONS OUTLAYS ULTIMATELY THE SOVIET UNION COLLAPSED UNDER THE WEIGHT OF ITS EFFORTS TO KEEP UP AND THE US EMERGED FROM THE 1980S AS NOT ONLY A SUPERPOWER BUT THE ONLY SUPERPOWER THE US OF 1990 BORE LITTLE RESEMBLANCE TO THE NATION THAT HAD BECOME SO WEAK IN THE LATE 1970S THAT EVEN A PERSIAN AYATOLLAH USING THE TACTICS OF A BARBARY PIRATE COULD TWIST ITS TAIL WITH IMPUNITY AFTER THE SOVIET COLLAPSE THE US REGAINED EFFECTIVE CONTROL OF THE UNITED NATIONS AND UNDER THE UN BANNER REPELLED SADDAM HUSSEIN'S GRAB FOR THE STRATEGICALLY IMPORTANT OIL SUPPLIES OF KUWAIT AND SAUDI ARABIA BUT THAT WAS TWO YEARS AGO THIS IS 1993 AND THE INTERESTING QUESTION AS ALWAYS IS WHERE DO WE GO FROM HERE IT SEEMS LIKELY THAT PRESIDENT CLINTON AND SECRETARY CHRISTOPHER SOON WILL FIND THEMSELVES FORCED TO CONDUCT FOREIGN POLICY MORE IN THE MANNER SKETCHED OUT BY HENRY KISSINGER A DECADE AGO THAN WITH THE WAYS AND MEANS AVAILABLE TO GEORGE BUSH IN 1991 THE US ALREADY HAS BEGUN A SHARP DRAWDOWN OF ITS MILITARY FORCES GIVEN THE LIKELY SOCIALSPENDING BENT OF THE NEW CONGRESS THAT PROCESS SEEMS LIKELY TO ACCELERATE CONGRESSIONAL STAFF ESTIMATES PUT THE FISCAL 1997 US DEFENSE BUDGET AT ONLY A LITTLE MORE THAN 3 OF GDP LESS THAN HALF THE PERCENTAGE OF A DECADE EARLIER AND BY FAR THE LOWEST SPENDING SINCE WORLD WAR II THE PREVIOUS LOW WAS 5 IN THE CARTER ERA EVEN THE 3 ESTIMATE MAY PROVE TO BE HIGH WITH FORMER REP LES ASPIN NOW SECRETARY OF DEFENSE THE HOUSE ARMED SERVICES COMMITTEE IS IN THE HANDS OF NOTORIOUS DEFENSEBUDGET CUTTERS SUCH AS RON DELLUMS OF CALIFORNIA JUDGING FROM THE SENATE TESTIMONY OF NEW FEDERAL BUDGET DIRECTOR LEON PANETTA HE MAY BE LOOKING AT DEFENSE FOR STILL MORE OF THOSE SAVINGS THE PRESIDENT HOPES TO FIND AS HE ATTEMPTS THE FEAT OF SPENDING MORE ON SOCIAL AND INFRASTRUCTURE PROGRAMS AND CUTTING THE FEDERAL DEFICIT SIMULTANEOUSLY IT ALREADY IS CLEAR THAT BUDGET CUTS WILL REDUCE US NATO FORCES DEPLOYED IN EUROPE WELL BELOW PREVIOUS TARGETS THE BUSH ADMINISTRATION HAD HOPED TO MAINTAIN 150000 TROOPS IN EUROPE BUT ESTIMATES NOW ARE THAT THEIR NUMBERS WILL FALL BELOW 100000 PERHAPS TO 70000 OR UNDER SINCE MOST OTHER NATO COUNTRIES ALSO ARE CUTTING DEFENSE BUDGETS SHARPLY NATO'S FUTURE TROOP DEPLOYMENTS ARE PROBLEMATICAL IT HAD HOPED TO RETAIN ABOUT HALF THE STRENGTH IT HAD BEFORE THE WARSAW PACT COLLAPSE AS ONE NATO OFFICIAL PUTS IT WITH AN EYE ON THE PERSIAN GULF AND THE BALKANS WE ARE FACING BROADER RESPONSIBILITIES WITH FEWER AND FEWER MEANS FOR MEETING THEM THE RAW NUMBERS OF THE US DEFENSE CUTS TELL ONLY PART OF THE STORY CONGRESS IS WARY OF CREATING TOO MUCH CIVILIAN UNEMPLOYMENT THROUGH PROJECT CANCELLATIONS DEFENSE CUTBACKS ALREADY HAVE COST SOME ONE MILLION JOBS IF YOU COUNT THE SPINOFF EFFECTS OF DIRECT LAYOFFS SO CONGRESSPERSONS ARE TRYING TO PROTECT DEFENSE CONTRACTS IN THEIR DISTRICTS THAT WILL MEAN WHAT IT ALWAYS MEANS THE MILITARY WILL HAVE TO GET ITS BUDGET SAVINGS FROM OPERATIONS AND MAINTENANCE AND THAT MEANS THAT THE OPERATIONAL READINESS OF THE US FORCES WILL DECLINE AS THIS PROCESS CONTINUES IT WILL INCREASINGLY LIMIT THE ABILITY OF THE US TO MOUNT THE EQUIVALENT OF ANOTHER DESERT STORM THE NEXT TIME SOME AGGRESSIVE POWER DECIDES TO TEST THE WILL OF THE US AND ITS ALLIES INDEED SADDAM HUSSEIN IS ALIVE AND WELL AND MAY PROVE TO BE THE AGGRESSOR WHO CONDUCTS THAT TEST A FEW YEARS HENCE AFTER REBUILDING HIS FORCES AND ASSESSING THE STRENGTH OF NATO THE OIL THAT HE FAILED TO SEIZE IN 199091 WILL STILL BE THERE SHOULD HE DECIDE TO TRY IT AGAIN IN 1995 WHAT ARE THE CHANCES FOR MESSRS CLINTON AND CHRISTOPHER FOR SUCCESSFUL BALANCEOFPOWER DIPLOMACY ONCE US MILITARY STRENGTH HAS BEEN REDUCED A FEW CLUES ARE CURRENTLY AVAILABLE BOTH CHINA AND RUSSIA TWO OF THE FIVE PERMANENT MEMBERS OF THE UN SECURITY COUNCIL WENT ALONG WITH DESERT STORM BUT NOW THEY ARE CRITICIZING THE US FOR WHAT THEY DESCRIBE AS A UNILATERAL DECISION TO FIRE CRUISE MISSILES AT SADDAM'S BAGHDAD NUCLEAR BOMB PLANT LAST WEEK FRANCE'S FOREIGN MINISTER ROLAND DUMAS ALSO JOINED IN FULFILLING HIS SELFAPPOINTED ROLE AS EUROPE'S CHIEF CRITIC OF US FOREIGN POLICY THE CHINESE AND RUSSIAN STATEMENTS ARE EVIDENCE OF A NEW ASSERTIVENESS ON THE PART OF BOTH RUSSIA REMAINS A HEAVILY ARMED COUNTRY AND CHINA IS IN THE MIDDLE OF A BIG ARMS BUILDUP RUSSIA'S HARDLINERS ARE DEMANDING THAT FOREIGN MINISTER ANDREI KOZYREV DISPLAY MORE EVIDENCE THAT HE IS CONDUCTING A FOREIGN POLICY INDEPENDENT OF THE WEST CHINA FOR ITS PART WANTS TO SUGGEST TO THE NEW US PRESIDENT THAT IT IS PREPARED TO REPAY HIM IN KIND IF HE PURSUES HIS CAMPAIGN PROMISE TO TAKE A TOUGHER LINE THAN THE BUSH ADMINISTRATION TOWARD CHINESE HUMANRIGHTS ABUSES DOES THE U S WANT TO REMAIN A SUPERPOWER OR JUST BE ONE OF THE GUYS A LOOK AT THE NUMBERS SUGGESTS THAT THE CHOICE ALREADY HAS BEEN MADE 9301250117 930125 DIVIDEND NEWS CRESTAR FINANCIAL CORP CRESTAR FINANCIAL CORP RICHMOND VA A BANK HOLDING COMPANY INCREASED ITS DIVIDEND 25 TO 25 CENTS A SHARE FROM 20 CENTS PAYABLE FEB 19 TO SHARES OF RECORD FEB 1 CRESTAR CURRENTLY HAS ASSETS OF 127 BILLION 9301250116 930125 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED NINE NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED SIX INCLUDING FIVE INITIAL OFFERINGS THE NEW YORK STOCK EXCHANGE BEGAN TRADING IN BORGWARNER CORP CHICAGO A PROTECTIVE SERVICES CONCERN UNDER BOR AFTER AN INITIAL OFFERING AS WELL AS IN THE FOLLOWING CLOSEDEND MANAGEMENT FUNDS DUFF & PHELPS UTILITY & CORPORATE BOND TRUST INC CHICAGO UNDER DUC SALOMON BROTHERS HIGH INCOME FUND NEW YORK UNDER HIF MUNICIPAL PARTNERS FUND INC NEW YORK UNDER MNP AND VAN KAMPEN MERRITT STRATEGIC SECTOR MUNICIPAL TRUST OAKBROOK TERRACE ILL UNDER VKS THE BIG BOARD ALSO BEGAN TRADING IN GENESIS HEALTH VENTURES INC KENNETT SQUARE PA AN OPERATOR OF GERIATRIC CARE FACILITIES UNDER GHV GLAMIS GOLD LTD VANCOUVER BRITISH COLUMBIA A MINING AND PRECIOUS METALS CONCERN UNDER GLG AND INTEGRA FINANCIAL CORP PITTSBURGH A MULTIBANK REGIONAL HOLDING COMPANY THAT PREVIOUSLY TRADED OVER THE COUNTER UNDER ITG IN ADDITION PEC ISRAEL ECONOMIC CORP NEW YORK A FINANCIAL MANAGEMENT CONCERN WITH INTERESTS IN ISRAEL AND ISRAELRELATED COMPANIES THAT PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE BEGAN TRADING ON THE BIG BOARD UNDER IEC THE NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS COMPUTER OUTSOURCING SERVICES INC NEW YORK A DATAPROCESSING SERVICES CONCERN UNDER COSI HAHN AUTOMOTIVE WAREHOUSE INC ROCHESTER NY A REGIONAL WAREHOUSE DISTRIBUTOR OF AUTOMOTIVE AFTERMARKET PRODUCTS UNDER HAHN AUTOIMMUNE INC LEXINGTON MASS A PHARMACEUTICAL CONCERN INVOLVED IN TREATMENT OF IMMUNE SYSTEM DISORDERS UNDER AIMM CHAMPION INDUSTRIES INC HUNTINGTON WVA A COMMERCIAL PRINTER AND SUPPLIER OF OFFICE FURNITURE UNDER CHMP AND GENERAL NUTRITION COS PITTSBURGH A RETAILER OF HEALTHRELATED PRODUCTS UNDER GNCI COMVERSE TECHNOLOGY INC WOODBURY NY A COMPUTER SYSTEMS CONCERN MOVED UP TO THE NATIONAL MARKET FROM THE NASDAQ SMALL CAP MARKET UNDER CMVT THE BIG BOARD ALSO BEGAN TRADING IN AN INITIAL OFFERING OF MERRILL LYNCH MARKET INDEX TARGETTERM SECURITIES UNDER MIE THE DERIVATIVE SECURITY PACKAGE KNOWN AS MITTS HAS A 5 1/2YEAR MATURITY TO JUNE 8 1998 AND IS ISSUED AS A SERIES OF SENIOR DEBT SECURITIES WITHOUT ANY INTERIM INTEREST PAYMENTS THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FIRST MULTIPLE CURRENCY WARRANTS WHICH REPRESENT THE VALUE OF THE US DOLLAR IN RELATION TO THE POUND MARK AND YEN UNDER FCWWS THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS IN HAEMONETICS CORP AND HAUSER CHEMICAL RESEARCH INC THE PHILADELPHIA STOCK EXCHANGE BEGINS TRADING OPTIONS TODAY IN EAGLE HARDWARE & GARDEN INC AND HEALTH CARE & RETIREMENT CORP THE CBOE BEGINS TRADING LEAPS OR LONGTERM EQUITY ANTICIPATION SECURITIES WHICH HAVE LONGER TERMS THAN REGULAR STOCK OPTIONS IN FEDERAL EXPRESS CORP TOMORROW 9301250115 930125 SLOVAKIA PLANS TO PASS LAWS TO ENCOURAGE FOREIGN INVESTMENT NEW YORK THE NEW SLOVAK REPUBLIC PLANS TO BOOST FOREIGN INVESTMENT BY IMPLEMENTING FAVORABLE TAX AND BANKING LEGISLATION A KEY OFFICIAL SAID SLOVAK FOREIGN MINISTER MILAN KNAZKO SAID THAT A SERIES OF 26 TREATIES PARTICULARLY ONE COVERING A COMMON CUSTOMS AND ECONOMIC ZONE SEEK TO ENSURE THAT THE SPLIT WITH THE CZECH REPUBLIC DOESN'T LEAD TO AN ECONOMIC BREAKDOWN SPEAKING TO A GROUP OF US ACADEMICS AND BUSINESSPEOPLE THREE WEEKS AFTER HIS COUNTRY BECAME INDEPENDENT MR KNAZKO ALSO SAID THE TWO REPUBLICS WILL CONTINUE TO USE THE KORUNA AS THEIR JOINT CURRENCY THE TREATIES ARE CURRENTLY BEING REVIEWED BY THE PARLIAMENT IT'S NOT TRUE THAT CZECHOSLOVAKIA IS DISINTEGRATING WHILE THE REST OF EUROPE IS INTEGRATING MR KNAZKO SAID THE CZECH AND SLOVAK REPUBLICS ARE RESTRUCTURING TO BETTER INTEGRATE WITH THE REST OF EUROPE A SPATE OF NEW LAWS INCLUDING THE CREATION OF BANKING AND TAXATION STRUCTURES SHOULD BRING SLOVAKIA IN LINE WITH EUROPEAN ECONOMIC PRACTICES MR KNAZKO SAID ACCORDING TO ECONOMIST AUGUSTIN HUSKA DEPUTY CHAIRMAN OF THE SLOVAK NATIONAL COUNCIL THE LEGISLATION INCLUDES INCOME TAX EXEMPTIONS FOR EXPATRIATES WORKING FOR FOREIGN COMPANIES AND TAX BREAKS FOR THOSE WHO INVEST IN REBUILDING THE SLOVAK INFRASTRUCTURE SLOVAKIA HAS GENERALLY WANTED TO MOVE MORE SLOWLY ON FREEMARKET REFORMS THAN ITS CZECH NEIGHBOR MUCH OF ITS MILITARYRELATED HEAVY INDUSTRY IS SLOWING DOWN AND UNEMPLOYMENT HAS RISEN TO 14 DR HUSKA SAID THAT THE COUNTRY'S PRIORITY NOW IS TO HALT THE DROP IN PRODUCTION WHICH FELL 29 LAST YEAR BY CONVERTING OR REVIVING THE OLD DEFENSE FACTORIES DR HUSKA SAID THE GOVERNMENT HOPES THE NEW LEGISLATION WILL BE IN PLACE IN SIX MONTHS BUT MANY EXPECT THE PARLIAMENT TO DRAW OUT THE PROCESS AND EVEN WATER DOWN THE REFORMS 9301250114 930125 WHO'S NEWS CANADIAN TIRE CORP CANADIAN TIRE CORP TORONTO STEPHEN BACHAND WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS RETAILING CONCERN EFFECTIVE MARCH 1 MR BACHAND 54 YEARS OLD CURRENTLY IS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT HECHINGER CO A LANDOVER MD RETAIL CHAIN HECHINGER DIDN'T IMMEDIATELY NAME A SUCCESSOR MR BACHAND SUCCEEDS DEAN GROUSSMAN WHO RESIGNED FROM CANADIAN TIRE LAST SUMMER TO BECOME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ZALE CORP A DALLAS JEWELRY RETAILING CHAIN IN THE MEANTIME THE TOP EXECUTIVE POSITIONS AT CANADIAN TIRE HAVE BEEN FILLED BY ITS CHAIRMAN HUGH MACAULAY 9301250113 930125 WHO'S NEWS AMERICAN CITY BUSINESS JOURNALS INC AMERICAN CITY BUSINESS JOURNALS INC CHARLOTTE NC DARWIN C WILE RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS PUBLISHER OF REGIONAL BUSINESS NEWSPAPERS TO PURSUE PERSONAL INTERESTS THE COMPANY SAID MR WILE 52 YEARS OLD ALSO RESIGNED FROM THE BOARD RAY SHAW CHAIRMAN AND CHIEF EXECUTIVE OFFICER ASSUMED MR WILE'S DUTIES 9301250112 930125 BANK OF SPAIN MOVES TO EASE ITS INTEREST RATE A WALL STREET JOURNAL NEWS ROUNDUP MADRID THE PESETA'S CURRENT STABILITY GAVE THE BANK OF SPAIN THE OPPORTUNITY ON FRIDAY TO CUT ITS BENCHMARK INTEREST RATE AND EASE PRESSURE ON SPAIN'S STRUGGLING ECONOMY BUT THE RATE IS STILL ABOVE ITS LEVEL IN SEPTEMBER BEFORE THE PESETA'S TWO DEVALUATIONS AND WILL PROBABLY FALL AGAIN ECONOMISTS SAID THE QUESTION IS WHEN THE CENTRAL BANK SAID IT CUT THE BENCHMARK RATE TO 1325 FROM 1375 IN RESPONSE TO A PROGRESSIVE RETURN TO NORMALITY IN THE MONETARY AND EXCHANGERATE MARKETS WHICH HAVE STEADILY OVERCOME THE TURMOIL OF THE AUTUMN OF 1992 SEVERAL SPANISH BANKS INCLUDING FOUR STATE BANKS BANCO SANTANDER BANCO ESPANOL DE CREDITO AND BANKINTER RESPONDED WITH A REDUCTION IN THEIR PRIME RATES OF BETWEEN 05 AND 08 PERCENTAGE POINT ANALYSTS HOWEVER SAID THEY EXPECTED BANKS TO TAKE ADVANTAGE OF THE RATE CUT TO REDUCE INTEREST ON LIABILITIES FASTER THAN ON ASSETS YOU'VE HAD A PERIOD OF PESETA STABILITY AND A PERIOD OF EASING TENSIONS IN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM SAID GWYN HAACHE AN ANALYST AT JAMES CAPEL & CO OF LONDON BUT ANOTHER ASPECT IS THAT THE ECONOMY IS WEAKENING QUITE MARKEDLY AND THE AUTHORITIES WANT TO TAKE ADVANTAGE OF EVERY OPPORTUNITY TO BRING RATES DOWN THE PESETA WHICH WAS DEVALUED 5 IN SEPTEMBER HAS HELD STEADY WITHIN THE EMS SINCE IT WAS DEVALUED A FURTHER 6 IN NOVEMBER A MOVE ACCOMPANIED BY A SHARP 075POINT RISE IN THE CENTRAL BANK'S KEY RATE ANTICIPATING FRIDAY'S RATE CUT INVESTORS HAD RUSHED TO SPAIN IN PAST WEEKS SEEKING TO LOCK IN HIGH RETURNS BEFORE INTEREST RATES DROPPED THE INFLOW OF FUNDS FURTHER HELPED BUOY THE PESETA AND DROVE UP PRICES ON THE MADRID STOCK EXCHANGE TWO WEEKS BEFORE THE RATE CUT SPAIN WAS ONE OF THE COUNTRIES MOST PUNISHED DURING THE EMS UPHEAVAL SAID JAIME DE PINIES HEAD OF RESEARCH AT MADRID MERCHANT BANK BANCO SANTANDER DE NEGOCIOS NOW IT IS ONE OF THE BIGGEST BENEFICIARIES OF RENEWED STABILITY BUSINESSMEN HAVE BEEN CRYING OUT FOR AN INTERESTRATE CUT TO STIMULATE THE SPANISH ECONOMY WHICH IS ESTIMATED TO HAVE GROWN LESS THAN 1 IN THE SECOND HALF OF 1992 SLOW GROWTH HOWEVER HAS HELPED TAME INFLATION WHICH CLIMBED JUST 03 IN DECEMBER BRINGING INFLATION FOR 1992 TO 54 AGAINST 55 A YEAR EARLIER THIS REDUCTION SHOWS THE PESETA IS STABLE WITHIN THE EMS AND THAT SPAIN'S RECESSION IS INTENSIFYING SAYS CRISTOBAL MONTORO CHIEF ECONOMIST AT THE PRIVATE INSTITUTO DE ESTUDIOS ECONOMICOS ALTHOUGH MOST ECONOMISTS BELIEVE A FURTHER RATE REDUCTION LIES AHEAD THEY DON'T EXPECT A CUT UNTIL GERMAN RATES FALL AND THE OUTCOME OF THE FRENCH ELECTIONS IN MARCH IS KNOWN THE RESURGENCE OF AN UNSTABLE FRENCH FRANC COULD KNOCK LOOSE OTHER RATEMECHANISM CURRENCIES INCLUDING THE PESETA FROM THEIR FOOTHOLD IN THE GRID 9301250111 930125 TECHNOLOGY COURT ORDERS EPA TO REQUIRE FUME CATCHERS BY ROSE GUTFIELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL COURT'S ORDER THAT THE ENVIRONMENTAL PROTECTION AGENCY REQUIRE FUMECATCHING DEVICES IN CARS IS A GAIN FOR THE OIL INDUSTRY AS WELL AS A LOSS FOR THE CAR MAKERS A THREEJUDGE PANEL OF THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA OVERTURNED AN EPA DECISION NOT TO REQUIRE AUTO MAKERS TO INSTALL THE CANISTERS THE DEVICES ARE DESIGNED TO CAPTURE THE TOXIC AND SMOGFORMING EMISSIONS THAT ESCAPE DURING REFUELING THE PANEL SAID THE CLEAN AIR ACT REQUIRED THE EPA TO ISSUE REGULATIONS ORDERING THAT FUMECATCHING DEVICES BE INSTALLED ON CARS UNDER THE LAW HOWEVER SUCH DEVICES WOULDN'T BE REQUIRED UNTIL SEVERAL MODEL YEARS AFTER THE RULE IS ISSUED WHEN THE EPA ISSUES A CANISTER RULE GASOLINE STATIONS IN ABOUT 30 MODERATELY POLLUTED CITIES WILL BECOME EXEMPT FROM AN EXISTING REQUIREMENT THAT THEY INSTALL SPECIAL PUMP NOZZLES TO CATCH THE VAPORS MANY GASOLINE STATIONS ARE OWNED BY MAJOR OIL COMPANIES THE AUTO COMPANIES WITH SUPPORT FROM THE TRANSPORTATION DEPARTMENT HAD ARGUED THAT THE CANISTERS POSE A FIRE HAZARD THEY INSIST THAT THE FUMES ARE BETTER CAPTURED BY THE NOZZLE DEVICES THE LOGICAL PLACE TO TREAT THE PROBLEM IS AT THE PUMP ASSERTED A GENERAL MOTORS CORP SPOKESMAN A CHRYSLER CORP SPOKESMAN NOTED THAT GASOLINE VAPOR IS EXPLOSIVE CITING SAFETY CONCERNS THE EPA ANNOUNCED DAYS BEFORE THE MICHIGAN PRESIDENTIAL PRIMARY IN THE SPRING THAT IT WOULDN'T REQUIRE AUTO COMPANIES TO INSTALL THE CANISTERS THE APPEALS COURT PANEL HOWEVER SAID THE AGENCY DIDN'T DEMONSTRATE THAT ALL FUMERECOVERY SYSTEMS FOR CARS PRESENT INHERENT AND UNREASONABLE SAFETY RISKS THE COURT NOTED THAT TECHNOLOGIES OTHER THAN CANISTERS MAY BECOME AVAILABLE THE EPA'S ANNOUNCEMENT PROMPTED THE NATURAL RESOURCES DEFENSE COUNCIL AND THE CENTER FOR AUTO SAFETY TO FILE SUIT AGAINST THE EPA THE AMERICAN PETROLEUM INSTITUTE JOINED THE ACTION THIS IS A MAJOR VICTORY FOR ALL BREATHING AMERICANS SAID DAVID DONIGER SENIOR ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL JIM DASKAL GENERAL COUNSEL FOR THE SERVICE STATION DEALERS OF AMERICA SAID HE IS DELIGHTED AND RELIEVED MR DASKAL ESTIMATED THE COST OF INSTALLING THE NOZZLES AT A TYPICAL 12NOZZLE PUMP AT 35000 OR MORE CHRYSLER SAID ESTIMATES OF THE COST OF CHARCOAL CANISTERS RANGE FROM 90 TO 100 A CAR THE CANISTER WOULD CONNECT WITH THE FUEL TANK AND THE ENGINE WHERE THE VAPORS WOULD BE BURNED CHRYSLER SAID IN ADDITION THE AUTO MAKER SAID ENGINES WOULD HAVE TO BE TUNED TO BURN THE VAPOR CLEANLY THE EPA PUTS THE PERCAR COSTS FOR CANISTERS AT AROUND 20 WITH THE INCREASED COST MADE UP BY FUEL SAVINGS WHILE THE DECISION BY THE THREEJUDGE PANEL COULD STILL BE APPEALED IT ISN'T CLEAR WHETHER THE CLINTON ADMINISTRATION WILL CHOOSE TO TAKE ACTION AN EPA SPOKESMAN SAID ONLY THAT THE ISSUE WOULD BE CONSIDERED BY THE NEW ADMINISTRATION SPECIAL PUMP NOZZLES WILL STILL BE REQUIRED IN THE MOST POLLUTED CITIES SUCH AS HOUSTON AND NEW YORK AT LEAST FOR 10 OR 15 YEARS AFTER A RULE IS ISSUED UNTIL THE CANISTERS ARE IN WIDESPREAD USE SOME STATES OR CITIES CAN REQUIRE THE PUMP DEVICES ON THEIR OWN SOME ALREADY DO DOUGLAS LAVIN IN DETROIT CONTRIBUTED TO THIS ARTICLE 9301250110 930125 TECHNOLOGY SUPERCOMPUTER DESIGNER SEEKS FUNDING AFTER IBM HALTS ITS SUPPORT OF PROJECT BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL STEVE S CHEN'S QUEST TO BUILD THE WORLD'S MOST POWERFUL SUPERCOMPUTER WAS DEALT A SEVERE BLOW BY INTERNATIONAL BUSINESS MACHINES CORP'S DECISION TO STOP FUNDING THE PROJECT THE DECISION FIRST REPORTED IN THE NEW YORK TIMES HAS LEFT THE CHINESEBORN SUPERCOMPUTER DESIGNER SCRAMBLING FOR ALTERNATIVE FUNDING PARTICULARLY FROM GOVERNMENT AND PRIVATE SOURCES IN TAIWAN WHERE HE MAINTAINS CLOSE TIES HOWEVER ANALYSTS SAID THE PROSPECTS AREN'T GOOD FOR FINDING ANOTHER ANGEL LIKE IBM WHICH IS BELIEVED TO HAVE SPENT OVER 100 MILLION ON MR CHEN'S SUPERCOMPUTING SYSTEMS INC SINCE 1987 THE YEAR HE LEFT HIS POSITION AT CRAY RESEARCH INC IN A DISPUTE OVER FUNDING NOT ONLY HAS THE SUPERCOMPUTER INDUSTRY IN GENERAL SUFFERED FROM RECESSION BUT THE SECRETIVE MR CHEN HAS FALLEN FAR BEHIND HIS ORIGINAL TIMETABLE AND DOUBTS HAVE EMERGED ABOUT THE TECHNOLOGICAL DIRECTION HE IS TAKING I THINK IT'S GOING TO BE A TOUGH GO FOR THEM TO PROCEED WITH THE GAME PLAN THEY HAD IN PLACE SAID GARY SMABY A MINNEAPOLIS SUPERCOMPUTER CONSULTANT A SPOKESMAN AT SSI EAU CLAIRE WIS DECLINED TO COMMENT IBM OFFICIALS DENIED THE MOVE WAS RELATED TO BIG BLUE'S OWN FINANCIAL PROBLEMS DEADLINES WERE NOT MET AND THE MACHINE HAS YET TO MATERIALIZE SAID ONE ADDING THAT THE FUNDING ARRANGEMENT HAD BEEN SCHEDULED TO EXPIRE ALL ALONG AT THE END OF LAST YEAR HE SAID IBM IS CONTINUING TO HELP SSI MAKE PAYROLL WEEKTOWEEK AND DAYTODAY BUT ADDED THAT THIS ISN'T GOING TO CONTINUE INDEFINITELY ANOTHER IBM OFFICIAL SAID SSI HAD ORIGINALLY AGREED TO DELIVER A 32PROCESSOR MACHINE BY THE END OF LAST YEAR BUT WASN'T ABLE TO DO SO THE MOST RECENT SCHEDULE CALLED FOR A FOURPROCESSOR MACHINE BY THE END OF THIS YEAR THE OFFICIAL ADDED AN OFFICIAL AT TECHNOLOGIES STRATEGIES & ALLIANCES A MENLO PARK CALIF CONSULTING FIRM THAT HAS BEEN TRYING TO ARRANGE ALTERNATIVE FUNDING FOR SSI SAID THE COMPANY HAD EARLIER CONSIDERED THEN ABANDONED SELLING STOCK TO THE PUBLIC BECAUSE IBM DECLINED TO ASSUME ADDITIONAL RISK HE DIDN'T ELABORATE ALTHOUGH HE SAID HE BELIEVES SSI REMAINS AN ATTRACTIVE OPPORTUNITY BOTH FROM A TECHNICAL STANDPOINT AND FINANCIALLY COMPOUNDING MR CHEN'S PROBLEMS HAS BEEN THE GROWING PROMINENCE OF SOCALLED MASSIVELY PARALLEL SUPERCOMPUTERS WHICH STRING THOUSANDS OF CHEAP PROCESSORS TOGETHER TO ATTACK PROBLEMS IN TANDEM ALTHOUGH GETTING SOFTWARE TO RUN ON THE NEW MACHINES IS DIFFICULT MANY RESEARCHERS BELIEVE IT IS INEVITABLE THAT THE NEW ARCHITECTURES WILL EVENTUALLY REPLACE DESIGNS SUCH AS MR CHEN'S WHICH USE A RELATIVELY SMALL NUMBER OF EXPENSIVE PROCESSORS INDEED THE TREND TOWARD MASSIVE PARALLELISM WAS AMONG THE FACTORS THAT LED IBM TO ABANDON SSI SINCE SIGNING ON WITH MR CHEN IBM HAS MADE BIG STRIDES IN DEVELOPING CLUSTERS OF WORKSTATIONS WHICH DISTRIBUTE THE WORKLOAD AND IN CERTAIN COMPUTATIONS APPROACH SUPERCOMPUTER SPEED IBM IS ALSO PLANNING TO BEGIN SELLING ITS OWN MASSIVELY PARALLEL COMPUTER SOON LAURENCE HOOPER CONTRIBUTED TO THIS ARTICLE 9301250109 930125 PHYSICIANS HEALTH SERVICES STOCK TRUMBULL CONN PHYSICIANS HEALTH SERVICES INC SAID IT SOLD 35 MILLION SHARES OF CLASS A STOCK IN AN INITIAL PUBLIC OFFERING FOR 15 APIECE THE OFFERING PUTS ABOUT 40 OF PHYSICIANS HEALTH'S STOCK IN PUBLIC HANDS THE REMAINING SHARES ALL OF WHICH ARE CLASS B SHARES WITH GREATER VOTING POWER ARE HELD BY VARIOUS DOCTORS' GROUPS PHYSICIANS HEALTH IS A HEALTHMAINTENANCE ORGANIZATION THAT SERVES MORE THAN 136000 ENROLLEES THE STOCK UNDERWRITING WAS LED BY DILLON READ & CO AND SMITH BARNEY HARRIS UPHAM & CO IN BRISK OVERTHECOUNTER TRADING FRIDAY PHYSICIANS HEALTH SHARES CLIMBED 25 CENTS TO 1775 UP MORE THAN 16 FROM THE OFFERING PRICE 9301250108 930125 SHORTSELLER TO CHANGE ITS TACTICS FESHBACH BROTHERS TO DO SOME BUYING IN BUOYANT MARKET BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL FESHBACH BROTHERS THE NATION'S BEST KNOWN SHORTSELLER HAS BEGUN BUYING STOCKS TO HEDGE AGAINST FURTHER RISES IN THE BUOYANT STOCK MARKET THE MOVE BY THE FESHBACHS DISCLOSED TO CLIENTS IN A LETTER DATED JAN 15 IS ANOTHER SIGN OF HOW BADLY SHORTSELLERS HAVE BEEN MAULED BY A STRONG TWOYEAR ADVANCE IN STOCKS PARTICULARLY AMONG SMALLER STOCKS THAT OFTEN PROVIDE FODDER FOR SHORTSELLERS SHORTSELLERS ATTEMPT TO PROFIT FROM FALLING STOCK PRICES BY BORROWING A COMPANY'S SHARES AND IMMEDIATELY SELLING THEM THEIR GOAL IS TO BUY THE STOCK BACK LATER AT A CHEAPER PRICE AFTER THE SHARES HAVE FALLEN AND RETURN THEM TO THE LENDER THE FESHBACHS BASED IN MENLO PARK CALIF ARE BEST KNOWN FOR DOING INTENSIVE RESEARCH TO IDENTIFY COMPANIES WITH SERIOUS PROBLEMS WHOSE STOCKS ARE LIKELY TO DECLINE RATHER THAN TRYING TO GUESS WHEN THE ENTIRE MARKET IS ABOUT TO TUMBLE AT THE PEAK OF THEIR SUCCESS ABOUT TWO YEARS AGO THE FESHBACHS HAD ROUGHLY 1 BILLION UNDER MANAGEMENT FROM CLIENTS INCLUDING MICROSOFT CORP CHAIRMAN WILLIAM GATES HOWEVER THE STOCK MARKET'S SURGE OF MORE THAN 30 IN 1991 AND NEARLY 10 LAST YEAR LEFT THE FESHBACHS NURSING BIG LOSSES THEIR CLIENT ACCOUNTS HAD LOSSES OF 40 TO 60 IN 1991 AND AN ADDITIONAL 10 TO 15 LAST YEAR ACCORDING TO INDUSTRY ESTIMATES THEIR ASSETS UNDER MANAGEMENT HAVE DWINDLED TO ROUGHLY 200 MILLION THE LETTER TO CLIENTS FROM STOCKBRIDGE PARTNERS INC THE FESHBACHS' BROKERAGE UNIT SAID IN AN EFFORT TO MAXIMIZE PROFITS AND MITIGATE LOSSES WE ARE STARTING TO ADD SOME LONG POSITIONS TO ACCOUNTS OUR PRIMARY FOCUS OF USING EXTENSIVE FUNDAMENTAL RESEARCH TO UNCOVER THOSE STOCKS WE FEEL MAKE THE BEST SHORTS IS STILL BEING EMPLOYED THE LETTER PREDICTED THAT THE FIRM'S LONG POSITIONS THAT IS STOCKS IT OWNS WILL ACT AS A HEDGE AGAINST MARKET ADVANCES AND SHOULD REDUCE THE LOSSES SHORT ACCOUNTS SUFFER DURING MARKET RALLIES LONG EXPOSURE WILL RANGE FROM A MINIMUM OF 0 TO A MAXIMUM OF 25 OF CLIENTS' ASSETS DEPENDING ON MARKET CONDITIONS AND WILL BE WORKED IN USING OUR ESTABLISHED COMMISSION STRUCTURE WHEN THE MARKET RALLIES WE WILL BE ABLE TO TAKE ADVANTAGE OF THE ADVANCES AND MINIMIZE LOSSES JOE FESHBACH ONE OF THREE BROTHERS WHO RUN THE FIRM AT FIRST DISPUTED MARKET RUMORS OF THE MOVE LAST THURSDAY SAYING I HAVE NO IDEA WHAT YOU'RE TALKING ABOUT BUT WHEN A COPY OF THE LETTER WAS OBTAINED ON FRIDAY HE CONFIRMED THE NEW STRATEGY I THINK THE ENVIRONMENT FOR SHORTSELLING OVER THE LAST COUPLE OF YEARS IS OBVIOUSLY A LOT DIFFERENT HE SAID IN AN INTERVIEW LOW INTEREST RATES HAVE HAD A BIG IMPACT ON A NUMBER OF FACTORS THAT ARE RELEVANT TO SHORTSELLING IN PARTICULAR THE AMOUNT OF MONEY THAT'S FLOWED INTO EQUITY MUTUAL FUNDS AND EQUITY VALUATIONS OVERALL AS A RESULT MR FESHBACH SAID WHAT WE'VE DONE REQUIRES SOME RETHINKING BECAUSE OUR RESULTS ARE NOT UP TO OUR HISTORICAL STANDARDS WE THINK THAT DOING SOME WELLTHOUGHTOUT HEDGING TO PROVIDE MORE STAYING POWER AND TO REDUCE TO SOME EXTENT VOLATILITY WILL GIVE OUR SHORTS A LITTLE BIT MORE CHANCE TO WORK THE FESHBACHS HAVE BOUGHT STOCKS BEFORE BUT ONLY IN A SEPARATE FUND CALLED JUNKYARD PARTNERS CREATED ABOUT A YEAR AGO SOME MARKET ANALYSTS APPLAUDED THE SHIFT I THINK IT'S A GREAT IDEA SAID BRIAN MAYO AN ANALYST AT CENTURION TRUST CO IN CHICAGO QUITE A FEW SHORTSELLERS ARE STARTING TO EYEBALL LONGS GUYS WHO FOCUS STRICTLY ON SHORTS ARE INFLEXIBLE THEY CAN MISS HALF THE BOAT IT HAS YET TO BE SEEN WHETHER THE FESHBACHS CAN MAKE THE LONG SIDE WORK FOR THEM BUT THEY HAVE AN OUTSTANDING RESEARCH DEPARTMENT NOW INSTEAD OF LOOKING FOR DIRT THEY CAN LOOK FOR STARS TOO BUT SOME COMPETITORS ARGUE THAT INVESTORS WHO GIVE MONEY TO SHORTSELLERS LIKE THE FESHBACHS ALREADY HAVE LONG POSITIONS ELSEWHERE IN THEIR PORTFOLIOS AND DON'T WANT TO DILUTE THE RESULTS OF THEIR ALLOCATION TO SHORTSELLING WITH ADDITIONAL LONG POSITIONS SOME ANALYSTS SAY THE FESHBACHS' MOVE IS MOTIVATED BY MARKETING CONSIDERATIONS AS WELL BECAUSE SHORTING IS CURRENTLY UNPOPULAR MY CLIENTS DO NOT WANT SHORT MANAGERS AS A STYLE CATEGORY AT THE MOMENT SAYS LEE HENNESSEE A MONEY MANAGEMENT CONSULTANT AT SHEARSON LEHMAN BROTHERS INC BUT SOME MARKET PROFESSIONALS SEE THE FESHBACHS' CAPITULATION AS A POSSIBLE SIGN THAT THE STOCK MARKET IS OVERHEATED WITH SOME OF THE BESTKNOWN BEARS EFFECTIVELY CAPITULATING TO THE RISING MARKET BY JUMPING ON THE BANDWAGON AND BUYING STOCKS SHEARSON'S MS HENNESSEE FOR EXAMPLE BELIEVES IT'S TIME TO GIVE MONEY TO SHORTSELLERS PRECISELY BECAUSE THEY HAVE UNDERPERFORMED FOR TWO YEARS THE FESHBACHS' STRATEGY SHIFT SHE SAYS IS JUST ANOTHER SIGN THAT THE MARKET IS RIPE FOR A DOWNTURN ANOTHER CYNICAL SHORTSELLER AGREES WHEN PROBABLY THE BIGGEST BEAR OUT THERE SENDS OUT A LETTER ADVERTISING THAT HE'S GOING LONG THE END OF THE BULL MARKET CANNOT BE FAR AWAY IT'S ANOTHER SIGN WE'RE AT THE TOP 9301250107 930125 INTERNATIONAL STRAIT OF MALACCA SPILL RAISES SAFETY ISSUE WATERWAY IS OVERCROWDED NOT MARKED VERY WELL AND PLAGUED BY PIRATES BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE THE COLLISION OF TWO OIL TANKERS NEAR THE ENTRANCE TO THE CONGESTED STRAIT OF MALACCA HAS PROMPTED RENEWED CALLS FOR MORE POLICING AND TIGHTER SAFETY CONTROLS ON SHIPS USING THE SHALLOW PIRATEINFESTED BOTTLENECK ON THE MAIN SHIPPING ROUTE CONNECTING EUROPE AND THE MIDEAST TO EAST ASIA THE COLLISION THURSDAY MORNING JUST OFF THE NORTHERN TIP OF THE INDONESIAN ISLAND OF SUMATRA THE THIRD MAJOR INCIDENT INVOLVING OIL TANKERS WORLDWIDE SINCE DEC 4 OF COURSE HAS ADDED TO THE ALREADY HEATED DEBATE ABOUT OIL TANKER SAFETY BUT THE STRAIT OF MALACCA HAS ITS OWN SPECIFIC PROBLEMS THE CRASH WHICH INVOLVED A DANISH SUPERTANKER CARRYING 78 MILLION GALLONS OF CRUDE AND AN EMPTY JAPANESE TANKER FOLLOWS A SERIES OF INCIDENTS IN AND AROUND THE STRAIT A SHALLOW CHANNEL SHAPED LIKE A FUNNEL THE STRAIT OF MALACCA SEPARATES MALAYSIA AND INDONESIA AND NARROWS TO A POINT NEAR SINGAPORE EVERY DAY AS MANY AS 2000 SHIPS INCLUDING 200 LARGE CARGO VESSELS USE THE 600MILELONG CHANNEL WHICH CONNECTS THE INDIAN OCEAN AND THE SOUTH CHINA SEA THE STRAIT IS CROWDED TOUGH TO NAVIGATE PLAGUED WITH PIRATES AND NOT AS WELLMARKED OR MONITORED AS OTHER BUSY SEA LANES SUCH AS THE ENGLISH CHANNEL SHIPPING EXECUTIVES SAY THE 21HOUR JOURNEY THOUGH THE MAIN SECTION OF THE STRAIT FEATURES TRICKY TIDES SHALLOW WATER NARROW CHANNELS AND LOTS OF UNPREDICTABLE LOCAL TRAFFIC MANY SHIPPING EXECUTIVES BELIEVE NAVIGATION AIDS SHOULD BE IMPROVED AND THE THREE COUNTRIES BORDERING THE STRAIT SHOULD DO A BETTER JOB OF POLICING THE CHANNEL LAST MONTH PIRATES STOPPED A FREIGHTER IN THE STRAIT AND KILLED ITS CAPTAIN AND CHIEF OFFICER IN SEPTEMBER AN OIL TANKER AND A CONTAINER SHIP COLLIDED SPILLING 34 MILLION GALLONS OF SAUDI CRUDE INTO THE STRAIT AND IN AUGUST A TAIWANESE FISHING TRAWLER RAMMED A CRUISE SHIP SINKING THE PASSENGER VESSEL THREE PEOPLE DIED AND SIX ARE MISSING IN JUNE A US DESTROYER AND AN OIL TANKER COLLIDED IN THE STRAIT TEARING A 100FOOT GASH IN THE WAR SHIP'S HULL THERE IS A GROWING CONCERN THAT MORE NEEDS TO BE DONE SAID ROGER KOHN A SPOKESMAN FOR THE INTERNATIONAL MARITIME ORGANIZATION A UNITED NATIONS AGENCY BASED IN LONDON THAT REGULATES INTERNATIONAL SHIPPING IMO HAD ALREADY CREATED A WORKING GROUP TO EXAMINE PROBLEMS IN THE STRAIT BEFORE THE LATEST INCIDENT THE WORKING GROUP IS DUE TO ARRIVE IN SOUTHEAST ASIA AT THE END OF FEBRUARY THE STRAIT IS AN INTERNATIONAL WATERWAY AND ANY SHIP HAS THE RIGHT TO USE IT A FACT THAT LIMITS THE AUTHORITY OF THE IMO AND THE THREE COASTAL STATES INDONESIA MALAYSIA AND SINGAPORE MALAYSIA AND INDONESIA HAVE PROPOSED LEVYING TOLLS ON SHIPS THAT PASS THROUGH THE STRAIT TO HELP PAY FOR NAVIGATION AIDS PATROLS AND ENVIRONMENTAL DAMAGE OVER THE WEEKEND MALAYSIAN AND INDONESIAN POLITICIANS REPEATED THEIR DEMANDS FOR TOLLS AND TIGHTER REGULATIONS THE STRAIT OF MALACCA IS NARROW AND THEREFORE IT'S EASY FOR ACCIDENTS TO OCCUR MALAYSIAN PRIME MINISTER MAHATHIR MOHAMAD SAID WE WANT THE COUNTRIES WHOSE SHIPS PLY THE ROUTE TO SHARE THE COST OF MAINTENANCE AND PROVIDE EQUIPMENT TO ENSURE THERE ARE NO ACCIDENTS NOT SURPRISINGLY THE SHIPPING INDUSTRY DOESN'T LIKE THE IDEA JOHN JOYCE MARINE MANAGER AT THE INTERNATIONAL CHAMBER OF SHIPPING AN INDUSTRY ASSOCIATION BASED IN LONDON SAID A TOLL WOULD RAISE LEGAL QUESTIONS ABOUT WHO CONTROLS INTERNATIONAL WATERWAYS THE SHIPPING INDUSTRY ISN'T AGAINST THE IDEA OF PAYING FOR SAFETY IMPROVEMENTS HE SAYS SO LONG AS SUCH A FUNDING SYSTEM WAS SEEN AS EQUITABLE AND WASN'T SEEN AS TAXING SHIPOWNERS FOR OTHER PURPOSES CERTAINLY SETTING UP ANY JOINT AGENCY IN THE STRAIT WOULD TAKE SOME DOING RELATIONS BETWEEN MALAYSIA INDONESIA AND SINGAPORE ARE SOMETIMES PRICKLY ESPECIALLY OVER ANYTHING INVOLVING BORDERS AND BOUNDARIES IT TOOK THREE YEARS OF INCREASINGLY BRAZEN PIRATE RAIDS BEFORE SINGAPORE AND INDONESIA AGREED A FEW MONTHS AGO TO BETTER COORDINATE THEIR PATROLS AT THE SOUTHERN END OF THE STRAIT SHIPPING EXPERTS SAID ONE WAY AROUND THE FUNDING PROBLEM WOULD BE TO ASK COUNTRIES SUCH AS JAPAN OR SAUDI ARABIA WHICH BENEFIT FROM USE OF THE STRAIT TO CONTRIBUTE TO ITS UPKEEP RATHER THAN LEVYING A FEE ON EACH SHIP USING THE CHANNEL LATE SUNDAY THE RISK OF SEVERE ENVIRONMENTAL DAMAGE WAS FADING AS WAVES AND EVAPORATION HELPED TO DISPERSE OIL LEAKING FROM THE DANISH SHIP THE MAERSK NAVIGATOR THE TANKER WAS STILL BURNING SAID A SPOKESMAN FOR AP MOLLER CO OF COPENHAGEN THE SHIP'S OWNER ONE OF THE SHIP'S 18 CARGO TANKS WAS PUNCTURED IN THE COLLISION AND CONTINUED TO DUMP OIL INTO THE SEA BUT THE SPOKESMAN SAID THE FULL EXTENT OF THE DAMAGE TO THE TANK OR THE AMOUNT OF OIL SPILLED HASN'T BEEN DETERMINED YET THE CARGO OF LIGHT CRUDE WAS EN ROUTE TO JAPAN FROM OMAN THE COMPANY SAID AN OIL SLICK 15 MILES LONG AND 22 TO 110 YARDS WIDE IS DRIFTING WEST WITH THE CURRENT AWAY FROM GREAT NICOBAR ISLAND 23 MILES TO THE NORTH OF THE CLOSEST POINT OF THE SLICK GREAT NICOBAR IS ONE OF A CHAIN OF TINY ISLANDS BELONGING TO INDIA THE TUGS AND A CREW OF FIREFIGHTERS WHO BOARDED THE SHIP BY HELICOPTER ARE FIGHTING THE FIRE WHICH MAY TAKE SEVERAL DAYS TO EXTINGUISH A SPOKESMAN FOR SANKO STEAMSHIP CO OF TOKYO OWNER OF THE OTHER VESSEL INVOLVED SAID THE COMPANY IS INVESTIGATING THE INCIDENT BUT DECLINED TO COMMENT ON HOW THE COLLISION OCCURRED HENRIK SORT MANAGING DIRECTOR OF AP MOLLER'S SINGAPORE UNIT SAID HE DIDN'T WANT TO SPECULATE ON WHAT CAUSED THE COLLISION BOTH SHIPS WERE REGISTERED IN SINGAPORE AND THE ISLAND REPUBLIC SAID IT WILL CONDUCT AN INQUIRY INTO THE COLLISION AP MOLLER DID SAY IT WAS RAINING WHEN THE MAERSK NAVIGATOR AND SANKO HONOUR COLLIDED IT ISN'T KNOWN IF THEY WERE USING RADAR IT IS MANDATORY FOR LARGE SHIPS TO HAVE RADAR BUT IT ISN'T MANDATORY TO HAVE THE SYSTEM TURNED ON NEITHER COMPANY WOULD COMMENT THE STRAIT LOCATED JUST ABOVE THE EQUATOR IS PRONE TO SUDDEN HEAVY RAINS SHIP RADAR DOESN'T WORK VERY WELL IN THE RAIN SAYS CMC STEWART OF SHELL INTERNATIONAL MARINE LTD A SHIPPING ARM OF ROYAL DUTCH/SHELL GROUP MR STEWART SAYS STEERING THROUGH THE CHANNEL IS A VERY DEMANDING EXERCISE FOR A LARGE SHIP BUT WE'RE QUITE SATISFIED IT CAN BE DONE SAFELY HE LIKE MANY INDUSTRY EXECUTIVES SEES PIRATES AS A BIGGER DANGER PIRATES IN AND AROUND THE STRAIT TYPICALLY BOARD A SHIP ROB THE CREW AND EMPTY THE SAFE RATHER THAN STEALING THE SHIP OR ITS CARGO THE GREAT FEAR IS THAT PIRATES WILL TIE UP OR LOCK UP THE CREW LEAVING NOBODY AT THE WHEEL AS THE SHIP STEAMS ON SOONER OR LATER WE'RE GOING TO HAVE A SHIP BOARDED ITS NAVIGATION DISRUPTED AND IT RUNS AGROUND MR STEWART SAYS IT IS A NIGHTMARE SCENARIO 9301250106 930125 DIVIDEND NEWS KENTUCKY CENTRAL LIFE INSURANCE CO KENTUCKY CENTRAL LIFE INSURANCE CO SAID ITS BOARD DECIDED NOT TO DECLARE A QUARTERLY DIVIDEND CITING NEGOTIATIONS ON AN EQUITY INFUSION OF AS MUCH AS 100 MILLION THE COMPANY LAST PAID A QUARTERLY DIVIDEND OF 11 CENTS A SHARE LAST OCT 13 A COMPANY OFFICIAL DECLINED TO GIVE A MORE SPECIFIC REASON FOR THE BOARD'S DECISION KENTUCKY CENTRAL BASED IN LEXINGTON KY IS A LIFE INSURANCE CONCERN WITH SUBSIDIARIES INVOLVED IN PROPERTY AND CASUALTY INSURANCE BROADCASTING CITRUS FARMING AND CONSUMER FINANCE 9301250105 930125 MOULINEX SA REPORTS 19 DECLINE IN SALES TO 15 BILLION FOR '92 SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH HOUSEHOLD EQUIPMENT MAKER MOULINEX SA SAID 1992 CONSOLIDATED SALES SLIPPED 19 TO 82 BILLION FRANCS 15 BILLION FROM 836 BILLION FRANCS A YEAR EARLIER THE COMPANY WHICH MAKES 60 OF ITS SALES OUTSIDE OF FRANCE AND GERMANY DESPITE HAVING MAJOR UNITS IN BOTH COUNTRIES SAID FOREIGN EXCHANGE FLUCTUATIONS REDUCED SALES BY 213 MILLION FRANCS MOULINEX SAID IT MANAGED TO INCREASE ITS SALES VOLUME SLIGHTLY AND MAINTAIN OR INCREASE ITS MARKET SHARE DESPITE POOR MARKET CONDITIONS THE COMPANY ALSO SAID THAT IT PLANS TO SHIFT TO A FISCAL YEAR FROM A CALENDAR YEAR CONSEQUENTLY MOULINEX WILL REPORT FINAL RESULTS FOR THE 15 MONTHS ENDING MARCH 31 ON JULY 23 IT WILL POSTS RESULTS FOR CALENDAR 1992 ON APRIL 23 MOULINEX'S STOCK ROSE SHARPLY ON THE PARIS STOCK MARKET FRIDAY BUT THE ACTIVITY APPEARED TO BE LINKED TO STATEMENTS BY MOULINEX OFFICIALS CARRIED IN A FRENCH NEWSPAPER MOULINEX CLOSED AT 829 FRANCS UP 7 ON VOLUME OF 297000 SHARES COMPANY CHAIRMAN ROLAND DARNEAU WAS QUOTED AS SAYING THAT MOULINEX'S CURRENT STRUCTURE WHICH GIVES CONTROL TO EMPLOYEES MUST BE ALTERED A COMPANY OFFICIAL EXPLAINED THAT THE STRUCTURE MAKES IT IMPOSSIBLE TO PROCEED WITH A CAPITAL INCREASE BECAUSE THE EMPLOYEECONTROLLED ELEMENTS WON'T ACCEPT A DILUTION OF THEIR STAKE HE ADDED THAT MANAGEMENT HOPES THAT A CHANGE WILL BE REALIZED THOUGH HE REFUSED TO SAY WHETHER A SALE OF A CONTROLLING STAKE IN MOULINEX IS UNDER NEGOTIATION IT WAS THAT EXPECTATION THAT LED TO THE BUYING SPREE IN MOULINEX SHARES FIVE COMPANIES HELD BY VARIOUS GROUPS OF EMPLOYEES PLUS THE COMPANY FOUNDERS CONTROL 56 OF THE VOTING RIGHTS AND ABOUT 40 OF THE SHARES OF MOULINEX THE FIVE COMPANIES HOLD ALL BUT A TINY PORTION OF A HOLDING COMPANY THAT IN TURN HOLDS ANOTHER COMPANY THAT CONTROLS MOULINEX THE REMAINING MOULINEX SHARES ARE HELD BY THE PUBLIC 9301250104 930125 WHO'S NEWS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS ROBERT B HOLLAND III WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR HOLLAND 40 YEARS OLD WILL REMAIN A PARTNER OF DALLAS LAW FIRM JACKSON & WALKER 9301250103 930125 POLITICS & POLICY CLINTON'S REPUTATION FOR SAVVY POLITICAL INSTINCTS IS TARNISHED BY FAILURE OF THE BAIRD NOMINATION BY MICHAEL K FRISBY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE WITHDRAWAL OF ZOE BAIRD'S NOMINATION AS ATTORNEY GENERAL SHOWS THAT SPECIAL INTEREST POLITICS IS A CONTACT SPORT AND SO FAR PRESIDENT CLINTON ISN'T PLAYING IT VERY WELL MR CLINTON STRESSED DURING THE TRANSITION HIS DESIRE TO HAVE A CABINET THAT LOOKS LIKE AMERICA AND PAID SO MUCH ATTENTION TO CHOOSING BLACKS HISPANICS AND WOMEN THAT HE SOMETIMES SEEMED MORE INTERESTED IN HIS NOMINEES' RACE AND SEX THAN IN THEIR QUALIFICATIONS BUT AT THE SAME TIME MR CLINTON AVOIDED PICKING CANDIDATES ADVOCATED BY ORGANIZED INTEREST GROUPS AND DID LITTLE TO CULTIVATE THOSE GROUPS AS A RESULT APPOINTEES LIKE MS BAIRD WERE LEFT WITHOUT ANY ORGANIZED SUPPORT AND MR CLINTON WAS LEFT INHABITING THE WORST OF ALL WORLDS HE APPEARED TO BE CATERING TO SPECIAL INTERESTS BUT GOT LITTLE SUPPORT FROM THOSE INTERESTS IN RETURN IF THE PRESIDENT CAN QUICKLY CHOOSE A WIDELY RESPECTED ATTORNEY GENERAL THE DAMAGE FROM THIS EARLY MISSTEP COULD DISAPPEAR THAT'S WHAT HAPPENED WHEN PRESIDENT BUSH SELECTED WYOMING REP DICK CHENEY AS DEFENSE SECRETARY AFTER WATCHING HIS NOMINATION OF TEXAS SEN JOHN TOWER GO DOWN IN FLAMES BUT MORE FUNDAMENTALLY THE BAIRD EPISODE RAISES QUESTIONS ABOUT CLINTON'S STYLE OF GOVERNMENT THAT COULD LEAD TO MORE SERIOUS PROBLEMS IT MAY ALSO REFLECT MR CLINTON'S INSULAR STYLE OF DECISIONMAKING AND HIS RELUCTANCE TO REACH OUT TO OTHERS BEFORE MAKING A NOMINATION ONLY TWO DAYS BEFORE THE BAIRD NOMINATION WAS ANNOUNCED SHE WAS BEING CONSIDERED FOR THE WHITE HOUSE COUNSEL'S JOB A POSITION THAT DOESN'T REQUIRE SENATE CONFIRMATION BUT IN MR CLINTON'S PUSH TO FIND A FEMALE NOMINEE AND IN HIS RUSH TO FILL THE CABINET BY CHRISTMAS HE DECIDED TO NAME MS BAIRD ATTORNEY GENERAL INSTEAD MOREOVER THE PRESIDENTELECT NEVER SPOKE TO JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN BEFORE REACHING THE DECISION TO NOMINATE MS BAIRD AND MR CLINTON DID LITTLE RESEARCH TO SEE HOW OTHER GROUPS WOULD RESPOND SIMILARLY THE SELECTION OF A NEW NOMINEE FOR ATTORNEY GENERAL IS BEING MADE BY A VERY SMALL TIGHTLY KNIT GROUP AND THE BAIRD BROUHAHA MAY ALSO SHOW A POTENTIAL WEAKNESS IN THE POLITICAL OPERATION OF THE CLINTON TEAM WHILE MR CLINTON RAN A MASTERFUL CAMPAIGN HE DISCARDED MOST OF HIS TOP POLITICAL ADVISERS SHORTLY AFTER THE ELECTION AND TURNED INSTEAD FOR ADVICE TO A MORE ELITE CROWD OF OXFORDEDUCATED FRIENDS AND FORMER GOVERNMENT OFFICIALS A SWITCH FROM BLUE JEANS TO BLUE SUITS AS ONE CLINTON ADVISER PUT IT THAT MAY HAVE LEFT HIM WITHOUT THE POLITICAL ANTENNAE TO SEE THAT MS BAIRD'S HIRING OF TWO ILLEGAL ALIENS AND HER FAILURE TO PAY TAXES ON THEM WOULD BECOME A BIG ISSUE WITH THE PUBLIC THE BAIRD INCIDENT UNDERSCORES THE FEELING THAT CLINTON'S POLITICAL INSTINCTS ARE NOT UNERRING SAYS THOMAS MANN OF THE BROOKINGS INSTITUTION TOP CAMPAIGN ADVISERS JAMES CARVILLE AND PAUL BEGALA WHO BROUGHT A POPULIST FLAIR TO THE CLINTON CAMPAIGN PLAYED ALMOST NO ROLE IN THE CLINTON TRANSITION AND THEN WERE SNUBBED AT THE INAUGURATION AND NOT GIVEN PRIME SEATS TO WATCH THE EVENT MR CLINTON HAS SINCE APOLOGIZED FOR THE BAD SEATS AND THE TWO ALONG WITH CLINTON CAMPAIGN POLLSTER STANLEY GREENBERG WILL BE GIVEN CONSULTING CONTRACTS WITH THE DEMOCRATIC NATIONAL COMMITTEE SO THEY CAN PROVIDE THE PRESIDENT WITH ADVICE ON A REGULAR BASIS A CRITICAL QUESTION NOW IS WHETHER MS BAIRD'S REPLACEMENT WILL ALSO BE A WOMAN WHITE HOUSE OFFICIALS SAY THAT IS NO LONGER A PREREQUISITE ALTHOUGH SOME AIDES ARE STILL PRESSING STRONGLY FOR THE APPOINTMENT OF A WOMAN OR A MINORITY THE TOP PRIORITY IS TO FIND A PERSON WHO IS RESPECTED ENOUGH TO BE CONFIRMED QUICKLY AND WITHOUT CONTROVERSY IF MR CLINTON DECIDES TO APPOINT A WOMAN HE IS LIKELY TO MAKE ANOTHER ENTREATY TO PATRICIA WALD CHIEF JUDGE OF THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA ORIGINALLY MR CLINTON'S TOP CHOICE THE 64YEAROLD CARTER APPOINTEE HAD TAKEN HERSELF OUT OF THE RUNNING TELLING FRIENDS SHE DIDN'T RELISH COMPETING FOR THE POST AND IF SHE GOT IT FORGOING CERTAIN JUDICIAL PENSION BENEFITS BUT PEOPLE WHO KNOW THE HIGHLY REGARDED MS WALD SAID YESTERDAY THAT DESPITE HER EARLIER AMBIVALENCE SHE WOULD ACCEPT AN OFFER TO TAKE THE JOB THIS TIME I DO THINK PAT HAS CHANGED HER MIND SAID ONE LAWYER WHO KNOWS HER WELL SHIRLEY HUFSTEDLER A FORMER FEDERAL APPEALS COURT JUDGE AND SECRETARY OF EDUCATION IN THE CARTER ADMINSTRATION HAD EARLIER TAKEN HERSELF OUT OF THE RUNNING FOR ATTORNEY GENERAL BUT STILL HAS MANY BOOSTERS IN WASHINGTON AND IS ANOTHER POSSIBLE CANDIDATE AMONG THE MEN WHITE HOUSE AIDES ARE ASSESSING IS JUDGE RICHARD ARNOLD A CLINTON FAMILY FRIEND FROM LITTLE ROCK ARK WHO HEADS THE US COURT OF APPEALS FOR THE EIGHTH CIRCUIT A POLITICALLY MODERATE CARTER APPOINTEE JUDGE ARNOLD IS CONSIDERED ONE OF THE BRIGHTEST DEMOCRATS ON THE FEDERAL BENCH BUT HE LACKS PROSECUTORIAL EXPERIENCE IF THE PRESIDENT DECIDES THAT SUCH EXPERIENCE IS NEEDED MS BAIRD WAS ALSO CRITICIZED FOR A LACK OF IT CHARLES RUFF COULD GET THE NOD A WATERGATE SPECIAL PROSECUTOR AND FORMER US ATTORNEY IN WASHINGTON HE NOW PRACTICES LAW PRIVATELY HERE TWO OTHER EXPERIENCED JUDGES WERE SAID TO BE UNDER DISCUSSION AT THE WHITE HOUSE JUDGE WALD'S BENCHMATE IN WASHINGTON ABNER MIKVA AND LEON HIGGINBOTHAM A SEMIRETIRED MEMBER OF THE US COURT OF APPEALS FOR THE THIRD CIRCUIT IN PHILADELPHIA JUDGE HIGGINBOTHAM IS BLACK BY PUTTING FOUR BLACKS IN HIS CABINET AND NOMINATING FIVE WOMEN FOR CABINETLEVEL POSTS MR CLINTON MIGHT HAVE REASON TO EXPECT PRAISE FROM WOMEN'S GROUPS AND BLACK GROUPS BUT BECAUSE HE DID IT WITHOUT BOWING TO THE SPECIFIC PREFERENCES OF THOSE GROUPS THERE HASN'T BEEN A LOT OF CHEERING IN ADDITION WHEN MR CLINTON DECIDED TO YANK MS BAIRD'S NOMINATION HE CONFIRMED THE WORST FEAR OF CRITICS HIS CHIEF ADVISERS THAT NIGHT WERE ALL WHITE MALES THAT COULD CREATE SOME PROBLEMS IN THE COMING MONTHS IT'S ONE THING TO RUN A CAMPAIGN AND NOT HAVE TO DEAL WITH ORGANIZED LABOR AND ORGANIZED MINORITY SUPPORT SAID ROBERT BECKEL A POLITICAL ANALYST BUT YOU HAVE TO GET A LEGISLATIVE PACKAGE THROUGH YOU CAN'T GET AWAY WITH IGNORING THESE GROUPS ON THE HILL WHETHER ORGANIZED SUPPORT COULD HAVE SAVED MS BAIRD'S NOMINATION OF COURSE IS FAR FROM CLEAR IN THE END MS BAIRD WAS BROUGHT DOWN BY A SEGMENT OF THE PUBLIC EXPRESSING THEIR VIEWS THROUGH A VARIATION OF THE ELECTRONIC TOWN HALL THAT ROSS PEROT TALKED ABOUT IN HIS PRESIDENTIAL CAMPAIGN CAFFEINEADDICTED CSPAN VIEWERS AS ONE SENATOR PUT IT DISCUSSED THEIR VIEWS ON RADIO TALK SHOWS AND THEN FLOODED LAWMAKERS WITH CALLS THE CALLS WERE DEMOCRACY WORKING SAID SEN RUSSELL FEINGOLD D WIS WHOSE OFFICE GOT 700 AGAINST MS BAIRD'S NOMINATION AND ONLY 35 FOR MR CLINTON'S ILLFATED CHOICE OF MS BAIRD ALSO MIGHT INDICATE THAT HE DOES POORLY WHEN FORCED TO MAKE DECISIONS ON AN IMPOSED SCHEDULE AS HE DID WITH HER APPOINTMENT JUST PRIOR TO CHRISTMAS IT MIGHT BE HE HAS TROUBLE WITH DEADLINES BECAUSE HE GETS SO ENGROSSED IN THINGS AND FALLS BEHIND SAYS JAMES PFIFFNER A PROFESSOR AT GEORGE MASON UNIVERSITY BUT MOST DOUBT THAT THE DAMAGE TO PRESIDENT CLINTON WILL LAST LONG PROVIDED HE CAN QUICKLY FIND A FIRSTRATE ATTORNEY GENERAL NOMINEE TO PUT IN MS BAIRD'S PLACE AND WOMEN'S GROUPS WHO DID LITTLE TO BACK MS BAIRD PLEDGE TO HELP THE NEXT TIME IF A WOMAN IS CHOSEN ELLEN MALCOLM PRESIDENT OF EMILY'S LIST A GROUP THAT HELPS TO RAISE FUNDS FOR DEMOCRATIC WOMEN CANDIDATES SAYS MS BAIRD'S CONFIRMATION FLOUNDERED ON THE DAYCARE ISSUE NOT BECAUSE OF ANY SUPPORT OR LACK OF SUPPORT FROM THE WOMEN'S GROUPS PAUL M BARRETT CONTRIBUTED TO THIS ARTICLE 9301250102 930125 DW HOLDINGS OWNER INTENDS TO SEEK KASLER BOARD POSITION EXPLORE MERGER BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL MONTANA INDUSTRIALIST DENNIS R WASHINGTON SAID HE INTENDS TO SEEK BOARD REPRESENTATION ON KASLER CORP A SOUTHERN CALIFORNIA BUILDER OF HIGHWAYS AND IS EXPLORING A POSSIBLE MERGER WITH THE COMPANY IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR WASHINGTON THE OWNER OF DW HOLDINGS DISCLOSED THAT HE OWNS A 65 STAKE IN KASLER OR 656200 COMMON SHARES AND SAID HE WANTS TO PARTICIPATE IN THE BUSINESS DECISIONS OF THE COMPANY DW HOLDINGS WHICH HAS INTERESTS IN CONSTRUCTION MINING AND HEAVYHAUL BUSINESSES THREATENED TO START A PROXY FIGHT UNLESS KASLER DELAYS A VOTE ON PROPOSED ANTITAKEOVER AMENDMENTS TO ITS ARTICLES OF INCORPORATION THE VOTE IS CURRENTLY SCHEDULED FOR MARCH 13 AT KASLER'S ANNUAL MEETING JL COWAN KASLER'S PRESIDENT AND CHIEF OPERATING OFFICER SAID DW HOLDINGS' MOVE WAS UNEXPECTED WE HAVEN'T HAD TALKS WITH THEM PREVIOUS TO THIS ANNOUNCEMENT AND WE HAD NO IDEA THEY WERE INTERESTED MR COWAN SAID HE SAID HE WASN'T SURE IF KASLER WOULD COMMENCE TALKS WITH ITS SUITOR KASLER IN HIGHLAND CALIF HAS OCCASIONALLY COMPETED WITH THE MISSOULA MONT BUILDER FOR CONSTRUCTION CONTRACTS AND HAS DISCUSSED POSSIBLE JOINT VENTURES ALTHOUGH NONE HAVE TAKEN PLACE HE SAID ATTRACTIVE FINANCES MR COWAN SAID KASLER WASN'T AWARE OF ANY EFFORTS TO ACQUIRE THE COMPANY WHEN THE ANTITAKEOVER MEASURES WERE PROPOSED RATHER HE SAID WE WERE LOOKING OUT AHEAD AND SEEING THAT WE MIGHT BE A POSSIBLE CANDIDATE BECAUSE OF OUR GREAT FINANCIAL CONDITION THE PROPOSED AMENDMENTS CALL FOR KASLER TO INSTITUTE A STAGGERED BOARD AND IMPLEMENT RESTRICTIONS ON THE REPURCHASE OF THE COMPANY'S STOCK AT A PREMIUM A SOCALLED ANTIGREENMAIL PROVISION KASLER WHOSE REVENUE FOR THE FISCAL YEAR ENDED OCT 31 WAS 1619 MILLION IS INVOLVED IN HEAVY CONSTRUCTION PROJECTS IT BUILT A LARGE ROADWAY AT THE LOS ANGELES INTERNATIONAL AIRPORT AND THE SPACE SHUTTLE LAUNCH COMPLEX FACILITIES AT VANDENBERG AIR FORCE BASE AND RECENTLY RECEIVED A 514 MILLION CONTRACT TO BUILD A FREEWAY INTERCHANGE IN SOUTHERN CALIFORNIA BUT THOMAS O LLOYDBUTLER AN ANALYST AT MONTGOMERY SECURITIES SAID KASLER'S BACKLOG OF ORDERS HAS DWINDLED TO ABOUT 100 MILLION AND EXPRESSED SURPRISE THAT AN OUTSIDER WOULD BE INTERESTED IN TAKING A RUN AT THE COMPANY IT SEEMS TO ME THAT THERE'S A LOT LESS VALUE IN KASLER RIGHT NOW THAN IN THE PAST HE SAID KASLER'S STOCK CLOSED AT 10625 A SHARE UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON FRIDAY DW HOLDINGS SAID IT RETAINED DAVID BATCHELDER A FORMER PROTEGE OF THE TEXASBASED TAKEOVER SPECIALIST T BOONE PICKENS AS AN INVESTMENT ADVISER HOWEVER IN ITS SEC FILING DW HOLDINGS SAID IT DIDN'T PRESENTLY INTEND TO SEEK TO ACQUIRE SHARES THROUGH A CASH TENDER OFFER DW HOLDINGS REFERRED CALLS TO MR BATCHELDER WHO COULDN'T BE REACHED FOR COMMENT IN ITS FISCAL FOURTH QUARTER KASLER POSTED NET INCOME OF 18 MILLION OR 18 CENTS A SHARE NEARLY EVEN WITH THE PREVIOUS YEAR'S FOURTHQUARTER NET INCOME OF 17 MILLION OR 18 CENTS A SHARE FOR THE FULL YEAR 1992 KASLER REPORTED NET INCOME OF 65 MILLION OR 65 CENTS A SHARE UP SLIGHTLY FROM THE PREVIOUS YEAR'S 57 MILLION OR 61 CENTS A SHARE 9301250101 930125 EPA CHIEF PLANS REVIEW OF OHIO WASTE INCINERATOR WASHINGTON ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR CAROL BROWNER SAID SHE WILL REVIEW A HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO BEFORE MAKING ANY DECISIONS ABOUT IT HER STATEMENT CAME AFTER US DISTRICT JUDGE ANN ALDRICH IN CLEVELAND DELAYED A SCHEDULED HEARING ON THE WASTE TECHNOLOGIES INDUSTRIES FACILITY UNTIL FEB 79 AT THE HEARING THE JUDGE IS TO CONSIDER A REQUEST BY THE ENVIRONMENTAL GROUP GREENPEACE FOR A PERMANENT INJUNCTION TO PREVENT THE COMPANY FROM CONDUCTING A TEST BURN ALL SIDES IN THE DISPUTE AGREED TO THE DELAY IN DECEMBER VICE PRESIDENT ALBERT GORE SAID THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE COMPANY A UNIT OF VON ROLL LTD SWITZERLAND TO PROCEED WITH A TEST BURN UNTIL CERTAIN QUESTIONS WERE ANSWERED ABOUT THE PLANT'S SAFETY AND OTHER MATTERS THE BUSH ADMINISTRATION HOWEVER GRANTED THE TEST BURN PERMIT EARLIER THIS MONTH PROMPTING GREENPEACE TO OBTAIN A TEMPORARY RESTRAINING ORDER BLOCKING IT MS BROWNER SAID IT IS MY GOAL TO MAKE PERMITTING DECISIONS FAIR OBJECTIVE AND DECISIVE AND THAT IS HOW I INTEND TO APPROACH WASTE TECHNOLOGIES INDUSTRIES 9301250100 930125 FCC BLOCKS PHONE FIRMS FROM INCREASING RATES WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION BLOCKED TELEPHONE COMPANIES FROM INCREASING RATES TO COVER COSTS RELATED TO CHANGES IN ACCOUNTING FOR RETIREE BENEFITS THREE COMPANIES BELL ATLANTIC CORP IN PHILADELPHIA U S WEST INC IN ENGLEWOOD COLO AND PACIFIC TELESIS GROUP IN SAN FRANCISCO TENTATIVELY IMPOSED THE INCREASES AT THE BEGINNING OF THIS YEAR TO OFFSET COSTS ASSOCIATED WITH SWITCHING FROM PAYASYOUGO ACCOUNTING FOR RETIREE BENEFITS TO ACCRUAL ACCOUNTING PAYASYOUGO ACCOUNTING REFLECTS JUST CURRENT COSTS WHILE ACCRUAL ACCOUNTING REFLECTS THE VALUE OF BENEFITS PROMISED TO EMPLOYEES BUT NOT YET PAID BELL ATLANTIC SOUGHT TO INCREASE CHARGES FOR INTERSTATE ACCESS TO ITS NETWORK BY 479 MILLION OR 18 U S WEST ASKED FOR AN INCREASE OF 1903 MILLION OR 1 PACIFIC TELESIS'S PACIFIC BELL UNIT SOUGHT AN ADDITIONAL 27 MILLION OR 19 AS A RESULT OF THE FCC'S DECISION THEY WILL HAVE TO REFUND CUSTOMERS FOR INCREASES THEY HAD BEEN CHARGING PROVISIONALLY THE PHONE COMPANIES SAID THEY WERE SURPRISED AND DISAPPOINTED WITH THE COMMISSION'S DECISION 9301250099 930125 HONDA ENGINE MEETS STANDARD DETROIT HONDA MOTOR CO SAID ITS GENERAL PURPOSE ENGINE HAS MET CALIFORNIA'S EMISSION STANDARD FOR ENGINES USED IN LAWNMOWERS POWER TOOLS POWER GENERATORS AND COMPRESSORS THE CALIFORNIA AIR RESOURCES BOARD SAID SOME ENGINES PARTICULARLY THE TWOSTROKE MODELS EMIT UP TO 50 TIMES MORE POLLUTION PER HORSEPOWER THAN A TYPICAL TRUCK ENGINE CALIFORNIA STANDARDS ADOPTED IN 1990 CALL FOR A 46 REDUCTION IN HYDROCARBON AND NITROGEN OXIDE EMISSION FROM SUCH ENGINES BY NEXT YEAR AN 82 REDUCTION IS CALLED FOR BY 1999 9301250098 930125 STAMPCOLLECTING MARKET DELIVERS NICELY LATE 19TH CENTURY ASIAN STAMPS DO WELL LATELY BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ON THE SHELF BEHIND VALENTINO FERRI ARE PILES OF FOLDERS FILLED WITH HUNDREDS OF THOUSANDS OF STAMPS AN ANONYMOUS AMERICAN COLLECTED THEM OVER A PERIOD OF DECADES SPENDING THE EARLY HOURS BETWEEN 4 AM AND 7 AM STICKING EACH OF HIS TREASURES INTO LITTLE SEETHROUGH COVERS AND ONTO NEAT PAGES PRACTICALLY THE WHOLE WORLD BETWEEN 1840 AND 1984 IS IN THERE EXCLAIMS MR FERRI ASSISTANT DIRECTOR AT THE SWISS AUCTION HOUSE CORINPHILA AUKTIONEN AG IN OCTOBER AFTER DETAILED CATALOGING CORINPHILA WILL AUCTION THE COLLECTION MR FERRI SAYS IT SHOULD BRING TWO MILLION SWISS FRANCS 14 MILLION TO THREE MILLION FRANCS INDEED SAY THE AUCTION HOUSES THE POSTAGE STAMP MARKET IS COASTING ALONG DESPITE THE RECESSIONARY TIMES STAMPS ARE A VERY HEALTHY MARKET SAYS RICHARD ASHTON FROM SOTHEBY'S HOLDINGS INC IN LONDON MR ASHTON IS BACKED UP BY RIVAL CHRISTIE'S INTERNATIONAL PLC STAMP EXPERT ANKE ADLERSLOTTKE WE HAVE WITHSTOOD THE RIGORS WHICH HAVE HIT OTHER MARKETS PHILIP KINNS DIRECTOR OF LONDON STAMP CATALOG PUBLISHERS STANLEY GIBBONS LTD ADMITS TO BEING UPBEAT HE SAYS THE PRICES OF SOME STAMPS HAVE JUST RISEN AND RISEN MR KINNS SAYS AN INVESTMENT BOOM IN THE LATE 1970S BOTTOMED OUT VERY QUICKLY TO BE REPLACED BY QUIET TIMES IN THE EARLY 1980S BUT WE'VE HAD A PICKUP SINCE THEN AROUND THE GLOBE STANLEY GIBBONS ESTIMATES THERE ARE MORE THAN 10 MILLION STAMP COLLECTORS MAKING IT THE BIGGEST HOBBY IN THE WORLD IT'S JUST WAY OUT TO SAY THAT VIDEO GAMES AND SUCH WILL KNOCK OUT STAMP COLLECTING SAYS MR KINNS WE MAY LOSE A FEW YOUNG ONES BUT WE'RE SEEING A RETURN OF PEOPLE IN THEIR FORTIES HOWEVER THE EXPERTS STRESS NO ONE IS ABOUT TO MAKE A FORTUNE OVERNIGHT BUYING UP STAMPS THE PEOPLE WHO ARE LIKELY TO MAKE A GOOD INVESTMENT ARE THOSE WHO BUY RARITIES AND TOP QUALITY FROM THE 19TH CENTURY AND FIRST HALF OF THE 20TH CENTURY BEFORE POST OFFICES STARTED ISSUING MASSES OF STAMPS TO CASH IN ON COLLECTING PRICES FOR RARITIES AND TOP QUALITY HAVE HELD UP WELL AND SURGED AHEAD IN SOME AREAS SAYS DEALER ANDREW NORRIS FROM LONDONBASED ARGYLL ETKIN SECONDARY MATERIAL HAS SUFFERED MR NORRIS WARNS STAMP COLLECTING IS A MINEFIELD WE DON'T RECOMMEND PEOPLE INVEST IN STAMPS UNLESS THEY KNOW WHAT THEY'RE DOING WE STILL HAVE PEOPLE COMING IN HERE WHO BOUGHT IN THE 1970S AND WHAT THEY'VE GOT IS WORTHLESS BEGINNERS SHOULD GO TO THE MYRIAD NATIONAL AND INTERNATIONAL STAMP EXHIBITIONS CAREFULLY CHOOSE A SPECIAL AREA AND STUDY EVERYTHING ABOUT IT HE SAYS AROUND 90 OF COLLECTORS CHOOSE A COUNTRY BUT MANY OPT FOR THEMES OR CONCENTRATE ON PRINTING ERRORS COLLECTING THE WORLD IS TOO EXPENSIVE TODAY DEALERS POINT OUT YOU HAVE TO SPECIALIZE MR NORRIS SAYS ASIAN STAMPS HAVE LED THE MARKET IN RECENT TIMES THE EXPERTS SAY WE HAVE A NEW GENERATION OF WEALTHY COLLECTORS IN ASIA MR ASHTON NOTES PER SQUARE INCH THIS STAMP WAS AT LEAST FOUR TIMES AS EXPENSIVE AS THE PAINTING IRISES' BY VINCENT VAN GOGH HE NOTES THAT PAINTING SOLD FOR 539 MILLION IN 1987 IN THE PAST TWO YEARS STAMPS FROM THAILAND AND TAIWAN HAVE SURGED AROUND 20 TO 25 DEALERS SAY A YELLOW STAMP FEATURING QUEEN VICTORIA ISSUED BY BRITISH POSTAL AUTHORITIES IN BANGKOK IN THE 1880S FETCHED 17000 IN A RECENT SALE SAYS MR KINNS HE ADDS IT WASN'T EVEN PRETTY AND SLIGHTLY DEFECTIVE AT CHRISTIE'S IN NOVEMBER 180 LOTS OF THAILAND STAMPS WERE ESTIMATED AT A TOTAL OF 25440 AND SOLD FOR 158680 MRS ADLERSLOTTKE SAYS OTHER SOUGHTAFTER AREAS INCLUDE THE FALKLAND ISLANDS THEY HAVE BEEN VERY SENSIBLE IN NOT ISSUING TOO MANY STAMPS EXPLAINS MR ASHTON CYPRUS IS ALSO IN AN UPWARD TREND SAYS MR KINNS BRITISH COMMONWEALTH STAMPS FROM THE REIGN OF GEORGE VI SEEM INCREASINGLY POPULAR IT WAS THE LAST REIGN BEFORE THE POST OFFICES STARTED ISSUING STAMPS FOR COLLECTORS POINTS OUT MR KINNS THERE'S TOO MUCH QUEEN ELIZABETH AROUND THE MESSAGE FROM THIS MARKET ALSO SEEMS TO BE DON'T THROW AN OLD ENVELOPE AWAY BEFORE CHECKING THOROUGHLY IN ITS SALE OF POSTAGE STAMPS PLANNED FOR MARCH 26 SOTHEBY'S IS OFFERING A PLUM RED EDWARD VII TWOPENNY STAMP ESTIMATED AT 1500 TO 2300 LAST YEAR THE STAMP KNOWN AS THE TYRIAN PLUM WAS DISCOVERED BY CHANCE IT FELL OUT OF AN OLD ENVELOPE THE OWNER WAS ABOUT TO THROW IN THE FIRE LASTCENTURY RARITIES OF ALL EUROPEAN COUNTRIES HAVE THEIR FOLLOWINGS DEALERS SAY FOR EXAMPLE AT A RECENT SOTHEBY'S SALE OF 19TH CENTURY ITALIAN STAMPS ALL LOTS WERE SOLD WITH SOME RARE EXAMPLES DOUBLING THEIR ESTIMATES THE US STAMP MARKET IS EXPENSIVE EUROPEAN DEALERS SAY BECAUSE THERE ARE SO MANY US COLLECTORS THE MARKET FOR POSTAL HISTORY ALSO HAS GAINED SAYS MR NORRIS AS OPPOSED TO SEPARATE STAMPS POSTALHISTORY COLLECTION EMBRACES ENVELOPES AND LETTERS EVERYTHING THAT PASSES THROUGH THE POST AT A CHRISTIE'S SALE AN 1857 LETTER FROM WESTERN AUSTRALIA TO MALTA WITH THE AUSTRALIAN STATE'S FAMOUS BLACK SWAN STAMPS WAS ESTIMATED AT 80000 SWISS FRANCS AND SOLD FOR 112500 FRANCS WITH LETTERS CAN COME A TOUCH OF HUMOR ONE LETTER TO BE AUCTIONED HAS AN ENVELOPE SENT FROM NOTTINGHAM ENGLAND TO NEW YORK WITH INSTRUCTIONS ON IT THAT THE AUCTION HOUSE DESCRIBES AS THE MOST AMAZING DELIVERY DIRECTIONS TO A POSTMAN THAT WE HAVE EVER SEEN 9301250097 930125 WHO'S NEWS OUTBOARD MARINE CORP OUTBOARD MARINE CORP WAUKEGAN ILL WILLIAM J EK PRESIDENT OF THE ALUMINUM BOAT GROUP OF THIS MARKETER OF BOATS AND BOATING EQUIPMENT WAS NAMED TO THE ADDITIONAL POST OF CORPORATE VICE PRESIDENT AS WAS L EARL BENTZ PRESIDENT OF THE FISHING BOAT GROUP 9301250096 930125 TECHNOLOGY ROCHE AIDS DRUG BRISTOL RIVAL FOUND SIMILARLY EFFECTIVE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL INSTITUTES OF HEALTH RELEASED A NEW STUDY SHOWING THAT THE DRUGS DDC BY HOFFMANNLA ROCHE INC AND DDI BY BRISTOLMYERS SQUIBB CO ARE SIMILARLY EFFECTIVE IN SLOWING THE PROGRESSION OF AIDS IN PATIENTS WHO DON'T IMPROVE WHILE TAKING BURROUGHSWELLCOME CO'S AZT RESULTS OF THE TRIAL IN 467 PATIENTS WERE RELEASED FRIDAY BY THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES A UNIT OF NIH IN BETHESDA MD THE FINDINGS IMPORTANT TO DOCTORS SEEKING A DELICATE BALANCE BETWEEN THE BENEFITS AND SIDE EFFECTS OF THE THREE TOXIC ANTIVIRAL DRUGS COULD CHANGE THE HORSE RACE BETWEEN THE BRISTOL AND ROCHE PRODUCTS CURRENTLY WELLCOME A UNIT OF WELLCOME PLC IS THE ONLY ONE OF THE THREE TO HAVE WON FOOD AND DRUG ADMINISTRATION APPROVAL AS A FIRSTLINE WEAPON AGAINST HUMAN IMMUNODEFICIENCY VIRUS HIV THE VIRUS THAT CAUSES AIDS BRISTOL'S DDI IS OFFICIALLY APPROVED FOR PEOPLE WHOSE CONDITION WORSENS ON AZT OR FOR THOSE WHO CAN'T TOLERATE ITS SIDE EFFECTS SUCH AS ANEMIA THE BRISTOL DRUG IS ALSO APPROVED FOR ANY PATIENT WHO HAS BEEN ON PROLONGED AZT THERAPY INDEED RECENT STUDIES SHOW THAT PATIENTS CAN BENEFIT BY SWITCHING OVER TO DDI AFTER AS LITTLE AS EIGHT WEEKS ON AZT THUS FAR ROCHE'S DDC IS APPROVED FOR MARKET ONLY IN A SUPPORTING ROLE AS A DRUG TO BE TAKEN IN COMBINATION WITH AZT THE COMPANY'S DATA LAST SPRING FAILED TO PERSUADE REGULATORS THE DRUG DESERVED APPROVAL AS A STANDALONE TREATMENT THE NEW STUDY COULD CHANGE THAT HOWEVER RESULTS OF THIS STUDY HAVE TO BE LOOKED AT CAREFULLY BY FDA AND WE PLAN TO SUBMIT IT TO THEM SAID MIKLOS SALGO DDC TEAM LEADER FOR ROCHE A NUTLEY NJ UNIT OF SWITZERLAND'S ROCHE HOLDING LTD HE SAID THE STUDY BOLSTERS ROCHE'S CONTENTION THAT DDC IS WORTHY OF MARKET APPROVAL AS A STANDALONE TREATMENT NIAID DIRECTOR ANTHONY FAUCI AGREED THE STUDY SUGGESTS SINGLE DRUG THERAPY WITH DDC HAS A ROLE HOWEVER SCIENTISTS AT NEW YORKBASED BRISTOL TOOK A DIFFERENT VIEW LAURIE SMALDONE BRISTOL'S EXECUTIVE E/0326HDIRECTOR FOR ANTIVIRAL RESEARCH SAID THAT THE STUDY'S PATIENTS WERE SO SEVERELY ILL THAT THESE RESULTS SHOULD NOT BE EXTRAPOLATED TO A HEALTHIER PATIENT POPULATION SAN FRANCISCO AIDS RESEARCHER DONALD ABRAMS CAUTIONED THAT WHEN CHOOSING A TREATMENT DOCTORS MUST CONSIDER THE CONTRASTING TOXIC EFFECTS OF THE TWO DRUGS DDC'S MAIN SIDE EFFECT CAN BE PAINFUL NERVE DAMAGE TO ARMS AND LEGS CALLED PERIPHERAL NEUROPATHY WHILE DDI MAY CAUSE STOMACH UPSETS AND PANCREATITIS 9301250095 930125 WHO'S NEWS INTEL CORP INTEL CORP SANTA CLARA CALIF JANE SHAW 53 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF ALZA CORP AND WINSTON CHEN 51 CHAIRMAN OF SOLECTRON CORP HAVE BEEN ELECTED TO THIS CHIP MAKER'S BOARD MS SHAW IS THE FIRST WOMAN ELECTED TO INTEL'S BOARD THE BOARD EXPANDS TO 13 MEMBERS 9301250094 930125 MEXICO'S CONSUMER PRICE INDEX MEXICO CITY MEXICO'S CONSUMER PRICE INDEX ROSE 08 DURING THE FIRST 15 DAYS OF JANUARY FROM THE SECOND HALF OF DECEMBER THE BANK OF MEXICO SAID THE CENTRAL BANK SAID THAT WAS THE SMALLEST INCREASE FOR THE PERIOD SINCE IT BEGAN CALCULATING THE INDEX IN 1988 PRICES ROSE 09 IN THE LIKE 1992 PERIOD MEXICO'S ANNUAL RATE OF INFLATION IN 1992 WAS 119 THE INCREASE FOR EARLY JANUARY WAS ATTRIBUTED TO A RISE IN THE COST OF SERVICES SUCH AS TELEPHONES AND HEALTH CARE THE CENTRAL BANK ALSO SAID NOTABLE INCREASES OCCURRED FOR GASOLINE ONIONS AND POTATOES INCREASES WERE PARTIALLY OFFSET BY DROPS IN PRICES FOR FISH CLOTHING AND TORTILLAS THE BANK SAID 9301250093 930125 SESSIONS ATTACKS JUSTICE REPORT CHARGING FBI DIRECTOR WITH ETHICS VIOLATIONS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WILLIAM SESSIONS THE FEDERAL BUREAU OF INVESTIGATION DIRECTOR WHO IS ACCUSED OF ETHICS VIOLATIONS IS COUNTERATTACKING IN A DETERMINED BID TO KEEP HIS JOB IN A MEMORANDUM PREPARED BY HIS LAWYERS AND GIVEN TO THE WHITE HOUSE CONGRESS AND NEWS ORGANIZATIONS MR SESSIONS CLAIMS THAT THE JUSTICE DEPARTMENT REPORT DETAILING THE ALLEGATIONS IS INACCURATE INCOMPLETE BIASED MISLEADING AND SHOULD NOT BE CONFUSED WITH AN OBJECTIVE INQUIRY MR SESSIONS HAS MET WITH WHITE HOUSE OFFICIALS AND PLANS TO CONSULT MEMBERS OF CONGRESS IN AN ATTEMPT TO UNDERCUT THE ACCUSATIONS THAT COULD LEAD TO HIS DISMISSAL MIDWAY THROUGH HIS 10YEAR TERM THIS WEEKEND MR SESSIONS SAID FORMER ATTORNEY GENERAL WILLIAM BARR AND THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY SHOULD HANG THEIR HEADS IN SHAME FOR ISSUING THE REPORT MR SESSIONS NONETHELESS AGREED TO MOST OF WHAT MR BARR ORDERED HIM TO DO INCLUDING PAYING TAXES ON THE GOVERNMENTPROVIDED BENEFIT OF DOORTODOOR TRANSPORTATION AND ALLOWING INVESTIGATORS TO REVIEW HIS MORTGAGE RECORDS TO DETERMINE IF HE RECEIVED A SWEETHEART DEAL MR SESSIONS SAID HE PLANNED TRIPS SO THAT HE COULD DO PERSONAL AND OFFICIAL BUSINESS ON THE SAME VISIT AND ACKNOWLEDGED HE MAY HAVE FOISTED RESPONSIBILITIES ON HIS STAFF FOR KEEPING CERTAIN RECORDS THAT HE SHOULD HAVE DONE HIMSELF SHORTLY BEFORE LEAVING OFFICE MR BARR SENT THE WHITE HOUSE A HARSHLYWORDED DEPARTMENT REPORT THAT ACCUSED MR SESSIONS A FORMER FEDERAL DISTRICT JUDGE IN TEXAS WITH A RANGE OF TRANSGRESSIONS FROM EVADING INCOME TAXES TO GIVING SOVIET DANCERS A RIDE IN HIS OFFICIAL LIMOUSINE FROM DISREGARDING SECURITY PROCEDURES TO LOSING TRACK OF FREQUENTFLYER MILES FROM REDECORATING HIS OFFICE AT NEARLY EIGHT TIMES THE MAXIMUM ALLOWABLE COST TO ALLOWING HIS WIFE TO INTERFERE WITH BUREAU BUSINESS THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY SAID ITS FINDINGS RAISE SERIOUS ISSUES THAT ONLY THE PRESIDENT CAN RESOLVE REGARDING WHETHER DIRECTOR SESSIONS SHOULD CONTINUE TO ENJOY THE PRESIDENT'S FULL FAITH AND CONFIDENCE IN HIS ABILITY TO PROPERLY CONDUCT HIS OFFICE THE REPORT WAS COMPLETED JUST DAYS BEFORE THE BUSH ADMINISTRATION LEFT OFFICE IN AN APPEARANCE YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY PRESIDENT CLINTON'S DIRECTOR OF COMMUNICATIONS GEORGE STEPHANOPOULOS SAID THE DISTURBING ALLEGATIONS WILL BE REVIEWED BY WHITE HOUSE COUNSEL BERNARD NUSSBAUM MR SESSIONS AND HIS LAWYERS BELIEVE THE CLINTON ADMINISTRATION WILL CONSIDER THE CHARGES WITH AN OPEN MIND UNFETTERED BY ALLEGATIONS ADOPTED BY MR BARR WHOM MR SESSIONS SAID IS IN LEAGUE WITH OTHERS WHO WERE DETERMINED TO SCUTTLE THE DIRECTOR MR BARR IN A TELEPHONE INTERVIEW SAID HE FELT NO PERSONAL ANIMUS TOWARD THE DIRECTOR AND NOTED THAT FBI PERSONNEL CONDUCTED THE INVESTIGATION THE REPORT CAME OUT OF THE FBI HE SAID IT WAS REVIEWED BY CAREER PROFESSIONALS WITHIN THE FBI AND THE DEPARTMENT TOP JUSTICE DEPARTMENT OFFICIALS UNDER PRESIDENT BUSH PRIVATELY COMPLAINED THAT MR SESSIONS'S LEADERSHIP IS WEAK THEY SAID HE FREQUENTLY DIDN'T GRASP THE ISSUES CONFRONTING THE DEPARTMENT AND APPEARED DISTRACTED THEY DIDN'T COMPLAIN HOWEVER THAT THE DEPARTMENT WAS POORLY RUN COMMENTING TO REPORTERS MR SESSIONS TOOK ISSUE WITH MANY OF THE DETAILS OF THE ALLEGATIONS HE SAID THE REPORT'S CHARGE THAT HE HAD AN FBI PLANE LOADED WITH FIREWOOD AMOUNTED TO FOUR STICKS OF ASPEN MR BARR ORDERED MR SESSIONS TO REIMBURSE THE GOVERNMENT 9890 FOR A WOODEN FENCE AROUND MR SESSIONS' HOUSE THAT THE REPORT SAID HAMPERS SECURITY RATHER THAN INCREASES IT MR SESSIONS POINTED TO A FOOTNOTE IN THE REPORT THAT SAID ABOUT TWOTHIRDS OF THAT COST WAS FOR THE IRON GATE AND ELECTRIC OPENER WHICH MET SECURITY SPECIFICATIONS MR SESSIONS ALSO RELEASED A STATEMENT FROM FBI PILOTS WHO REBUTTED A CHARGE THAT MR SESSIONS ORDERED HIS PLANE TO REFUEL IN FT SMITH ARK SO HE COULD VISIT HIS FATHER IT WAS ONLY AFTER THE PILOTS HAD PLANNED THE FLIGHT THAT THE DIRECTOR LEARNED THAT FT SMITH ARK WAS GOING TO BE A REFUELING STOP SAID THE STATEMENT 9301250092 930125 INTERNATIONAL JAPAN MERCHANDISE TRADE SURPLUS ROSE 12 IN DECEMBER '92 TOTAL SETS RECORD BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MERCHANDISE TRADE SURPLUS IN DECEMBER ROSE 12 FROM THE PREVIOUS YEAR TO 1123 BILLION PUSHING THE NATION'S TOTAL 1992 SURPLUS TO AN ALLTIME HIGH AS EXPECTED JAPANESE EXPORTS EXCEEDED IMPORTS DURING THE YEAR BY 10706 BILLION UP 38 FROM THE 1991 LEVEL JAPAN'S PREVIOUS RECORD SURPLUS WAS 8274 BILLION IN 1986 US HOUSE OF REPRESENTATIVES' MAJORITY LEADER RICHARD GEPHARDT D MO CALLED THE TRADE STATISTICS A WAKEUP CALL TO AMERICA THE SITUATION HE SAID REQUIRES AN END TO THE POLICIES OF THE PAST AND A MOVE TO A RESULTSORIENTED TRADE POLICY PRIME MINISTER KIICHI MIYAZAWA OPENING THIS YEAR'S PARLIAMENTARY SESSION FRIDAY ACKNOWLEDGED THAT JAPAN'S ECONOMIC SITUATION IS NOW VERY GRIM HE ADDED THAT THE GOVERNMENT IS DETERMINED TO BE VIGILANT IN ITS EFFORTS TO MONITOR THE ECONOMY CLOSELY AND TO RESPOND FLEXIBLY SO AS TO ACHIEVE THE EARLIEST POSSIBLE SENSE OF ECONOMIC RECOVERY MANY JAPANESE POLITICIANS ARE CLAMORING FOR EXTRA GOVERNMENT SPENDING TO SUPPLEMENT THE BUDGET NOW BEING CONSIDERED BY THE DIET THEY ALSO ARE DEMANDING TAX CUTS DEFICIT SPENDING AND INTERESTRATE REDUCTIONS THE ADMINISTRATION OF US PRESIDENT CLINTON IS EXPECTED TO JOIN THE FRAY HOPING THAT A STRONGER JAPANESE ECONOMY WILL HELP TO BALANCE JAPANESE TRADE MR MIYAZAWA HASN'T YET FIRMLY ENDORSED ANY SPECIFIC APPROACH JAPAN'S TRADE SURPLUS WITH THE US IN DECEMBER GREW 24 FROM A YEAR EARLIER TO 457 BILLION FOR ALL OF 1992 THE BILATERAL SURPLUS GREW 14 TO 4367 BILLION THAT INCREASE WAS FUELED BY A SHARP RISE IN EXPORTS TO THE US OF SEMICONDUCTORS AND CAR PARTS JAPAN'S SURPLUS WITH ASIA JUMPED 38 IN DECEMBER TO 537 BILLION FOR THE YEAR IT GREW 32 TO 4176 BILLION JAPAN'S LARGEST SURPLUS EVER WITH THE REGION JAPAN'S SURPLUS WITH EUROPE SHRANK 19 IN DECEMBER TO 202 BILLION DRAGGED DOWN BY A SHARP DROP IN EXPORTS OF AUTOS AND AUDIOVISUAL EQUIPMENT FOR THE FULL YEAR HOWEVER JAPAN'S SURPLUS WITH EUROPE GREW 14 TO 3118 BILLION JAPAN'S TOTAL EXPORTS GREW 43 IN DECEMBER AND 8 IN 1992 A FINANCE MINISTRY OFFICIAL SAID THE INCREASES WERE DUE MAINLY TO PRICE FACTORS NOT AN INCREASE IN EXPORT VOLUME JAPAN'S IMPORTS EDGED UP 03 IN DECEMBER BUT DROPPED 17 FOR THE YEAR IT WAS THE FIRST ANNUAL DECLINE IN IMPORTS SINCE 1986 ADJUSTING FOR SEASONAL FACTORS JAPAN'S DECEMBER TRADE SURPLUS WAS 909 BILLION UP 45 FROM NOVEMBER 9301250091 930125 SHEARSON IS OFFERING RETIREES A CHANCE TO CONTINUE EARNING TOP STOCKBROKERS WHO COACH THEIR SUCCESSORS CAN CLAIM FEES YEARS AFTER LEAVING BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IMAGINE RETIRING AND STILL POCKETING A FAT PAYCHECK FROM YOUR EMPLOYER FOR FIVE YEARS THAT'S WHAT SHEARSON LEHMAN BROTHERS INC IS OFFERING TO ITS TOP STOCKBROKERS WHEN THEY RETIRE A NEW PROGRAM BY THE AMERICAN EXPRESS CO UNIT GIVES CONTINUING PAYOUTS TO DEPARTING BROKERS WHO PASS THEIR ACCOUNTS TO OTHER SHEARSON BROKERS WHEN THEY LEAVE THE PLAN IS AN ATTEMPT BY THE US'S SECOND LARGEST SECURITIES FIRM TO RETAIN CUSTOMERS WHEN BROKERS LEAVE THE PROGRAM OFFERED TO TOPPRODUCING BROKERS OVER AGE 55 WHO HAVE BEEN WITH THE FIRM FOR AT LEAST 10 YEARS IS THE FIRST OF ITS KIND ON WALL STREET BROKERAGE EXECUTIVES SAY BUT PAINEWEBBER GROUP INC SAYS IT ALSO IS STUDYING A SIMILAR PLAN AND OTHER BIG BROKERAGE FIRMS ARE EXPECTED TO ADOPT SIMILAR PROGRAMS THIS YEAR PREVIOUSLY WHEN BROKERS RETIRED THEY QUIETLY SOLD THEIR BOOKS OF CLIENTS TO A COLLEAGUE THE NEW BROKER TYPICALLY KNEW NOTHING ABOUT THE CLIENTS AND THE DEPARTING BROKER HAD NO INCENTIVE TO KEEP THE CUSTOMERS HAPPY THE UPSHOT LOTS OF UNHAPPY INVESTORS SOME OF WHOM EVENTUALLY SWITCHED TO RIVAL BROKERAGE FIRMS THE OLD SYSTEM IS BARBARIC SAYS JOSEPH PLUMERI MANAGING PARTNER OF SHEARSON'S BROKERAGE OPERATIONS NOW HE SAYS DEPARTING BROKERS HAVE AN INCENTIVE TO DO WELL BY THE CLIENT BECAUSE THEIR FUTURE PAY IS TIED TO CONTINUED CLIENT ACTIVITY HERE'S HOW IT WORKS DEPARTING BROKERS WHO QUALIFY LINE UP ANOTHER BROKER WHO HAS BEEN WITH SHEARSON AT LEAST THREE YEARS FOR SIX MONTHS OR MORE THE DEPARTING BROKER WORKS WITH THE NEW BROKER INTRODUCING HIS CLIENTS AND SPELLING OUT THEIR NEEDS AFTER THE FIRST BROKER LEAVES HE SPLITS THE COMMISSIONS FROM HIS CLIENT BOOK WITH THE NEW BROKER SHEARSON RECOMMENDS THAT THE OLD BROKER RECEIVE AS MUCH AS 70 OF THE COMMISSIONS IN THE FIRST YEAR AFTER LEAVING WITH THE NEW BROKER GETTING THE REST THE RETIRED BROKER THEN WOULD RECEIVE AS MUCH AS 60 OF COMMISSIONS THE SECOND YEAR 50 THE THIRD YEAR 40 THE FOURTH AND 30 IN THE FIFTH YEAR WHEN THE PROGRAM ENDS THIS MEANS THAT TOP BROKERS WHO PRODUCE ANNUAL COMMISSIONS OF SAY 500000 COULD GET CREDIT FOR A TOTAL OF 1125000 IN COMMISSIONS OVER FIVE YEARS ASSUMING CLIENTS CONTINUE THE SAME AMOUNT OF ACTIVITY BROKERS TYPICALLY KEEP ABOUT 40 OF THEIR COMMISSIONS SO A RETIRING BROKER GENERATING THAT MUCH ACTIVITY WOULD POCKET A TOTAL OF 450000 IN A RELATED MOVE SHEARSON TODAY WILL LAUNCH A SIMILAR PROGRAM FOR RETIRING BRANCH MANAGERS UNDER THAT PROGRAM SHEARSON SAYS QUALIFYING BRANCH MANAGERS WHO LEAVE THE FIRM ARE ELIGIBLE TO RECEIVE BONUSES BASED ON THE BRANCHES' PROFITABILITY FOR THREE YEARS 9301250090 930125 ECONOMY BOND MARKET GIVES BOOST TO OFFICIALS SEEKING TO ALTER TREASURY FINANCING MIX BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BOND MARKET IS GIVING A STRONG BOOST TO CLINTON ADMINISTRATION OFFICIALS WHO WANT TO SAVE MONEY AND HELP THE ECONOMY BY TRIMMING THE AMOUNT OF LONGTERM DEBT THE TREASURY SELLS AS RUMORS AND SPECULATION THAT SUCH A SHIFT WAS IMMINENT SPREAD THROUGH THE MARKET LAST WEEK INTEREST RATES ON 30YEAR BONDS FELL BELOW 73 FOR THE FIRST TIME IN FOUR MONTHS ALTHOUGH THE RUMORS OF AN IMMINENT ANNOUNCEMENT WEREN'T ACCURATE THE MARKET REACTION SUPPORTED WHAT SOME OF PRESIDENT CLINTON'S ECONOMIC ADVISERS ARGUE LONGTERM INTEREST RATES WOULD BE LOWER AND THE ECONOMY BETTER OFF IF THE TREASURY RAISED MORE MONEY BY BORROWING SHORTTERM AND LESS BY BORROWING LONGTERM TOP ECONOMISTS IN THE REAGAN AND BUSH ADMINISTRATIONS PRESSED THIS CASE WITH LIMITED SUCCESS THEIR COUNTERPARTS IN THE NEW ADMINISTRATION HAVE ONE BIG ADVANTAGE THE PRESIDENT SIGNED UP EARLY MR CLINTON'S ECONOMIC MANIFESTO PUTTING PEOPLE FIRST COUNTED ON SAVING 2 BILLION A YEAR BY SELLING LESS LONGTERM DEBT THE CHAIRMAN OF MR CLINTON'S COUNCIL OF ECONOMIC ADVISERS LAURA TYSON SAID AT HER CONFIRMATION HEARING LAST WEEK THAT THE ADMINISTRATION WILL CONSIDER ALTERING THE TREASURY FINANCING MIX THE FINAL DECISION WILL BE MADE AT THE TREASURY NEITHER NEW SECRETARY LLOYD BENTSEN NOR HIS TOP LIEUTENANTS HAVE SAID ANYTHING IN PUBLIC ON THE ISSUE BUT THEY ARE SAID TO BE WILLING TO GO ALONG WITH AT LEAST SOME CUTBACK IN THE TREASURY'S LONGTERM BORROWING THE CASE FOR THE CHANGE IS STRAIGHTFORWARD THE INTEREST RATE ON A 30YEAR TREASURY BOND IS SUBSTANTIALLY HIGHER THAN THE RATE ON A THREEMONTH TREASURY BILL IF THE TREASURY BORROWED LESS AT 30YEAR RATES AND MORE AT THREEMONTH RATES TAXPAYERS COULD SAVE BILLIONS OF DOLLARS AT THE SAME TIME THE LAWS OF SUPPLY AND DEMAND SUGGEST THAT THE TREASURY WOULD HELP BRING DOWN LONGTERM INTEREST RATES BY SHIFTING ITS BORROWING AWAY FROM 10 AND 30YEAR BONDS THIS IN TURN SHOULD HELP THE ECONOMY BY MAKING IT CHEAPER FOR BUSINESSES AND CONSUMERS TO BORROW AND SPEND IT SHOULD PROVIDE BOTH IMMEDIATE AND LONGTERM BUDGET SAVINGS IN THE AREA OF INTEREST PAYMENTS ON THE FEDERAL DEBT THE FASTESTGROWING PORTION OF THE BUDGET THE DEMOCRATIC STUDY GROUP A GROUP OF HOUSE MEMBERS SAID IN A RECENT REPORT IT SHOULD ALSO PUSH DOWN LONGTERM RATES AND PROVIDE A SIGNIFICANT PORTION OF THE STIMULUS NEEDED TO PUT THE US ECONOMY BACK ON TRACK HARVARD ECONOMIST BENJAMIN FRIEDMAN ESTIMATES THAT SHIFTING 12 BILLION OF BORROWING AT MATURITIES OF 10 YEARS OR MORE INTO SHORTTERM BORROWING A 25 REDUCTION IN THE TREASURY'S ANNUAL LONGTERM BORROWING COULD CUT LONGTERM INTEREST RATES BY 1/2 PERCENTAGE POINT AND INCREASE ECONOMIC GROWTH BY MORE THAN ONE PERCENTAGE POINT ROBERT GIORDANO ECONOMIST AT GOLDMAN SACHS & CO ESTIMATES THAT ASSUMING STABLE INTEREST RATES THE TREASURY COULD SAVE AS MUCH AS 15 BILLION OVER FOUR YEARS BY ELIMINATING THE 30YEAR BOND ALTOGETHER BUT HE LIKE MANY OTHER WALL STREET ECONOMISTS SAYS THIS WOULD BE A MISTAKE BOND MARKET PROFESSIONALS HAVE LONG FOUGHT SUCH PROPOSALS AND HELPED BLOCK A MOVE EARLY IN THE REAGAN ADMINISTRATION TO SUSPEND SALES OF 30YEAR BONDS MR GIORDANO WARNS THAT THE TREASURY MIGHT SAVE A LITTLE MONEY IN THE SHORT RUN BUT END UP PAYING MORE IN THE LONG RUN SHORTTERM INTEREST RATES ARE LOW NOW BUT THEY MAY BE HIGHER IN THE FUTURE WHEN THE TREASURY REFINANCES THE DEBT HE AND OTHERS ALSO ARGUE THAT THE LIMITED AVAILABLE HISTORY SUGGESTS THAT SUCH MOVES ARE UNLIKELY TO REDUCE LONGTERM INTEREST RATES MUCH BUT EVEN IF LONGTERM RATES DO FALL THEY SAY IT WON'T MAKE MUCH DIFFERENCE THE ECONOMY DOESN'T RUN ON 30YEAR MONEY MR GIORDANO SAYS ABOUT THREEQUARTERS OF ALL CORPORATE FINANCING IS FOR 15 YEARS OR LESS AND FIXEDRATE MORTGAGES ARE LINKED TO THE RATES ON SEVEN TO 10YEAR TREASURY SECURITIES IN ADDITION THE MORE THE TREASURY BORROWS AT SHORTER MATURITIES THE MORE IT WILL PUSH THOSE RATES UP HURTING THOSE WHO BORROW SHORTTERM PRESIDENT BUSH'S CHIEF ECONOMIC ADVISER MICHAEL BOSKIN AND FEDERAL RESERVE VICE CHAIRMAN DAVID MULLINS TRIED TO PERSUADE THE TREASURY TO SHARPLY CUT BACK ON ITS LONGTERM BORROWING A FEW YEARS BACK IN THE END THOUGH THE TREASURY MADE ONLY A SLIGHT CHANGE IN 1991 IT TRIMMED THE QUARTERLY AUCTION OF 30YEAR BONDS TO 10 BILLION FROM 12 BILLION AND OF 10YEAR NOTES TO 10 BILLION FROM 11 BILLION AT ABOUT THE SAME TIME THE FEDERAL RESERVE GRADUALLY INCREASED ITS PURCHASES OF LONGERTERM SECURITIES 9301250089 930125 WHO'S NEWS WACHOVIA NAMES BAKER PRESIDENT OPERATIONS CHIEF BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL WACHOVIA CORP NAMED LM BAKER JR CURRENTLY HEAD OF ITS LARGEST BANKING SUBSIDIARY PRESIDENT AND CHIEF OPERATING OFFICER THE MOVE WAS SEEN ALMOST UNIVERSALLY AS PLACING MR BAKER 50 YEARS OLD IN LINE TO SUCCEED JOHN G MEDLIN JR AS CHIEF EXECUTIVE OFFICER MR MEDLIN 59 HAS BEEN PRESIDENT OF THE BANKING CONCERN FOR THE PAST 16 YEARS AND IS AMONG THE MOST HIGHLY RESPECTED EXECUTIVES IN THE US BANKING COMMUNITY HE WILL RETAIN HIS POSITIONS AS CHAIRMAN AND CHIEF EXECUTIVE THE POSITION OF CHIEF OPERATING OFFICER IS NEWLY CREATED BY THE COMPANY WHICH HAS DUAL HEADQUARTERS IN WINSTONSALEM NC AND ATLANTA MR BAKER WAS ALSO NAMED A DIRECTOR INDUSTRY ANALYSTS SAID THE APPOINTMENT WASN'T SURPRISING AND CONFIRMS EARLIER SUSPICIONS THAT MR BAKER IS THE LIKELY HEIR APPARENT HE WAS IN LINE FOR MANY YEARS TO SUCCEED MR MEDLIN AND NOW IT'S 99 SURE HE WILL SAID GEORGE SALEM AT PRUDENTIAL SECURITIES RESEARCH MR BAKER'S EXPERIENCE IN BOTH WACHOVIA'S CREDIT AND LOAN OPERATIONS GIVES HIM AN EDGE SAID THOMAS K BROWN AT DONALDSON LUFKIN & JENRETTE BECAUSE THE COMPANY'S SECRET OF SUCCESS HAS BEEN ITS ABILITY TO MARRY THE TWO AREAS MR MEDLIN SAID MR BAKER IS A LEADING CANDIDATE FOR HIS JOB BUT ADDED I WOULDN'T WANT TO ENCOURAGE ANYONE TO THINK IT'S A SURE THING HE SAID HE HASN'T SET A RETIREMENT DATE YET BUT HE HAS AN AGREEMENT WITH THE BOARD TO RETIRE WITHIN TWO YEARS AFTER HE TURNS 60 IN NOVEMBER HE SAID HE IS IN GOOD HEALTH WITH PERFECT MARKS ON HIS ANNUAL PHYSICAL MR BAKER DEMURRED WHEN ASKED ABOUT THE POSSIBILITY OF SUCCEEDING MR MEDLIN I DON'T THINK IT MEANS ANYBODY IS A FAVORITE HE INSISTED WE HAVE A STRONG MANAGEMENT TEAM AND ANY NUMBER OF PEOPLE COULD DO THAT JOB WHEN JOHN LEAVES ANALYSTS SAID THEY DON'T EXPECT THE APPOINTMENT TO LEAD TO ANY CHANGES IN THE COMPANY'S MANAGEMENT STRATEGY WACHOVIA'S REPUTATION IS THE STANDARD AGAINST WHICH ALL BANKS ARE MEASURED IN CREDIT CULTURE AND THE SCIENCE AND ART OF GRANTING LOANS SAID MR SALEM MR MEDLIN ALSO SAID HE EXPECTED VERY LITTLE CHANGE IN THE COMPANY'S DIRECTION IN OUR COMPANY MANAGEMENT SUCCESSION TENDS TO BE VERY SEAMLESS WITH LITTLE DIFFERENCE FROM ONE GENERATION TO THE NEXT WACHOVIA IS KNOWN WITHIN THE BANKING INDUSTRY FOR EXCEPTIONAL CREDIT QUALITY AND LOSS CONTROL A TRADITION THAT MR BAKER IS EXPECTED TO CONTINUE HE SERVED AS CHIEF CREDIT OFFICER FOR NINE YEARS BEFORE TAKING HIS MOST RECENT JOB IN 1990 AS PRESIDENT CHIEF EXECUTIVE AND DIRECTOR OF WACHOVIA BANK OF NORTH CAROLINA THE PARENT'S LARGEST UNIT HE WILL RETAIN THOSE POSTS 9301250088 930125 CREDITOR GROUP OF O&Y TO ACCEPT REDUCED CONTROL BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO OLYMPIA & YORK DEVELOPMENTS LTD'S UNSECURED CREDITORS AGREED TO ACCEPT REDUCED CONTROL OVER THE INSOLVENT REAL ESTATE COMPANY IN ORDER NOT TO TRIGGER THE LOSS OF VALUABLE TAX CREDITS HELD BY O&Y'S US SUBSIDIARY PEOPLE FAMILIAR WITH THE SITUATION SAID THE COMPROMISE AGREEMENT MAKES IT MORE LIKELY THAT O&Y'S LARGE UNSECURED CREDITOR CLASS MADE UP OF MOSTLY BIG BANKS WILL APPROVE THE COMPANY'S DEBT RESTRUCTURING PLAN AT A MEETING SCHEDULED FOR TODAY ACCEPTANCE OF THE PLAN WOULD PAVE THE WAY FOR THE COMPANY'S EXPECTED EMERGENCE FROM CANADIAN BANKRUPTCYLAW PROTECTION EARLY NEXT MONTH IT ALSO IS EXPECTED TO ADD MOMENTUM TO NEGOTIATIONS AIMED AT RESTRUCTURING O&Y'S BUSINESS IN THE US WHICH HAS SO FAR AVOIDED FILING FOR BANKRUPTCYCOURT PROTECTION I THINK WE ARE HEADING TOWARD A YES VOTE BY THE UNSECURED CREDITORS IN CANADA SAID STEVEN SHARPE OF TORONTO LAW FIRM DAVIES WARD & BECK WHICH IS ACTING FOR O&Y AT ISSUE IS HOW MUCH CONTROL OF O&Y WILL BE HELD BY A SOCALLED MONITORING COMMITTEE REPRESENTING THE UNSECURED CREDITORS TOO MUCH CONTROL COULD MAKE IT APPEAR THAT OWNERSHIP OF O&Y EFFECTIVELY HAS CHANGED HANDS CREDITORS AND THE COMPANY FEARED THAT THIS COULD CAUSE US TAX AUTHORITIES TO DISQUALIFY O&Y FROM MAKING USE OF THE TAX CREDITS WHICH ARE WORTH HUNDREDS OF MILLIONS OF DOLLARS UNDER AN EARLIER VERSION OF THE RESTRUCTURING PLAN THE MONITORING COMMITTEE HAD THE RIGHT TO VETO VARIOUS DECISIONS TAKEN BY THE O&Y BOARD AND BY A COURTAPPOINTED ADMINISTRATOR BUT THESE POWERS WERE REDUCED IN RECENT AMENDMENTS TO THE PLAN THEY THE UNSECURED CREDITORS DID LOSE POWERS VETO RIGHTS THAT EXISTED NO LONGER EXIST THE CHANGES RESULT IN THE MONITORING COMMITTEE BEING MUCH MORE OF A CONSULTATIVE BODY SAID A PERSON FAMILIAR WITH THE REVISED PLAN UNDER O&Y'S PLAN THE COMPANY'S SECURED CREDITORS HAVE THE RIGHT TO SEIZE AT ANY TIME THE ASSETS SECURING THEIR LOANS SOME LENDERS TO INDIVIDUAL BUILDINGS ALREADY HAVE TAKEN STEPS TO SEIZE THEIR PROPERTIES MEANWHILE UNSECURED CREDITORS WOULD HAVE A FIRST CLAIM ON WHATEVER EQUITY IF ANY IS LEFT IN O&Y AFTER THE SECURED CLAIMS ARE SATISFIED 9301250087 930125 POLITICS & POLICY ASPIN SAYS IRAQ APPEARS TO MOVE MISSILES INTO SOUTH BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND IRAQ EDGED CLOSER TOWARD RENEWED CONFRONTATION AS THE CEASEFIRE DECLARED BY BAGHDAD LAST WEEK CONTINUED TO FRAY DEFENSE SECRETARY LES ASPIN SAID THERE IS SOME INDICATION THAT THE IRAQI MILITARY IS MOVING SURFACETOAIR MISSILES INTO SOUTHERN IRAQ MOVEMENT OF THOSE MISSILES IS SIGNIFICANT BECAUSE RECENT HOSTILITIES WITH IRAQ BEGAN LATE LAST MONTH AFTER IRAQ ARRANGED SAMS IN A THREATENING PATTERN IN THE SOUTHERN NOFLY ZONE US ATTACKS ON SAM BATTERIES IN THE LAST WEEK OF THE BUSH PRESIDENCY DESTROYED SOME OF THE MISSILES AND CAUSED IRAQ TO MOVE OTHERS APPEARING ON CBS NEWS'S FACE THE NATION MR ASPIN ALSO SAID THAT PRESIDENT CLINTON REMAINS COMMITTED TO LIFTING THE BAN ON OPENLY GAY PERSONNEL'S PARTICIPATION IN THE MILITARY BUT HE NOTED THAT CONGRESS IS PROBABLY OVERWHELMINGLY AGAINST THAT MOVE AND INDICATED THAT HE IS ATTEMPTING TO CRAFT A COMPROMISE UNDER WHICH THE LIFTING OF THE BAN MIGHT BE IMPLEMENTED MORE GRADUALLY THAN THE PRESIDENT HAD PROMISED MR ASPIN HAD A STORMY MEETING WITH THE JOINT CHIEFS OF STAFF OVER THE ISSUE THURSDAY AND PRESIDENT CLINTON IS LIKELY TO RECEIVE A SIMILAR BLAST AS HE HOLDS HIS FIRST MEETING WITH THE CHIEFS TODAY THE DEFENSE SECRETARY'S COMMENTS ABOUT IRAQ FOLLOWED AN INCIDENT SATURDAY IN WHICH THE PILOT OF A US NAVY A6 INTRUDER POLICING THE SOUTHERN NOFLY ZONE REPORTED RECEIVING FIRE FROM ANTIAIRCRAFT ARTILLERY HE RESPONDED BY DROPPING A 1000POUND LASERGUIDED BOMB ON THE SITE THE PENTAGON SAID IT WAS THE THIRD INCIDENT IN THE NOFLY ZONES IN SOUTHERN AND NORTHERN IRAQ SINCE PRESIDENT CLINTON TOOK OFFICE WEDNESDAY THE NOFLY ZONE IN THE SOUTH WAS IMPOSED BY THE ALLIES LAST SUMMER TO PROTECT DISSIDENT IRAQI SHIITES IN THAT REGION WHILE THE ZONE IN THE NORTH WAS IMPOSED AFTER THE GULF WAR TO PROTECT THAT AREA'S KURDS A SPOKESMAN FOR THE IRAQI FOREIGN MINISTRY SAID THE ATTACKS IN THE ZONES BY US AIRCRAFT HAVE BEEN UNPROVOKED AND THAT IRAQ REMAINS COMMITTED TO THE CEASEFIRE IT UNILATERALLY DECLARED ON TUESDAY ACCORDING TO WIRE REPORTS THE US AND ITS ALLIES HAVE CALLED THE CEASEFIRE DECLARATION MEANINGLESS BECAUSE IT FALLS SHORT THE EXISTING CEASEFIRE IMPOSED BY THE UNITED NATIONS ON IRAQ AT THE END OF THE GULF WAR MR ASPIN STOPPED SHORT OF DECLARING THE IRAQI CEASEFIRE DEAD I THINK IT'S A LITTLE SOON TO DETERMINE WHAT'S GOING ON HERE SINCE THE CLINTON ADMINISTRATION TOOK OFFICE HE SAID ONE OF THE THINGS THAT WE NEED TO BE WATCHING IN THE NEXT COUPLE OF DAYS IS THE PLACEMENT OF THOSE SAMS 9301250086 930125 PENSION FUND OUTLAYS FOR INFRASTRUCTURE TO BE URGED BY PANEL WASHINGTON A CONGRESSIONALLY CREATED PANEL SOON WILL RECOMMEND STEPS TO ENCOURAGE INVESTMENT IN INFRASTRUCTURE PROJECTS BY PENSION FUNDS AND OTHER INSTITUTIONAL INVESTORS THE INFRASTRUCTURE INVESTMENT COMMISSION AGREED TO CALL FOR CREATION OF A GOVERNMENTSPONSORED ENTERPRISE TO PROVIDE INSURANCE AND GUARANTEES ON INFRASTRUCTUREPROJECT BONDS THE SEVENMEMBER COMMISSION SEES THAT AS A WAY TO ENHANCE THE CREDITWORTHINESS OF MANY INFRASTRUCTURE PROJECTS WITH LITTLE DIRECT COST TO THE GOVERNMENT THE COMMISSION HAS HIGH HOPES ITS RECOMMENDATIONS BEING PREPARED FOR RELEASE IN EARLY FEBRUARY WILL FIND FAVOR WITH THE CLINTON ADMINISTRATION WHICH HAS MADE INCREASED INFRASTRUCTURE INVESTMENT A TOP PRIORITY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY REALLY LIKES THE PLAN AND WANTS TO GO WITH IT SAID COMMISSION CHAIRMAN DANIEL FLANAGAN WHO WAS NAMED TO THE PANEL BY HOUSE SPEAKER THOMAS FOLEY D WASH BUT THE PROPOSAL IS OPPOSED BY SOME BOND INSURERS AND UNDERWRITERS ANN STERN PRESIDENT OF FINANCIAL GUARANTY INSURANCE CO SAID THE OFFBUDGET APPROACH RUNS COUNTER TO PRESIDENT CLINTON'S STATEMENT THAT THE DAYS OF TRYING TO GET SOMETHING FOR NOTHING ARE OVER AND WARNED THAT LOSSES WOULD BE INEVITABLE THE PANEL'S EMPHASIS ON ATTRACTING PENSION FUNDS HAS CREATED A LOT OF CONCERN IN THE PENSION COMMUNITY THAT AN ATTEMPT MIGHT BE MADE TO COERCE SUCH FUNDS INTO INVESTING IN QUESTIONABLE ENTERPRISES ACKNOWLEDGED RALPH STANLEY A COMMISSIONER APPOINTED BY SENATE GOP LEADER ROBERT DOLE OF KANSAS MR STANLEY A FORMER HEAD OF THE URBAN MASS TRANSIT ADMINISTRATION SAID THE INTENT IS TO MAKE PROJECTS CREDITWORTHY HE STRESSED THAT ANY PENSION INVESTMENTS WOULD BE VOLUNTARY COMMISSION STAFFERS SAID THAT OF THE MORE THAN 230 BILLION OF TAXEXEMPT BONDS SOLD LAST YEAR LESS THAN 40 BILLION WENT INTO NEW INFRASTRUCTURE PROJECTS 9301250085 930125 RAYMOND JAMES CONFIRMS IT ADVISED REGULATORS OF POSSIBLE FRONTRUNNING' BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL RAYMOND JAMES & ASSOCIATES CONFIRMED THAT IT HAS INFORMED REGULATORS OF ITS CONCERNS ABOUT POSSIBLE FRONTRUNNING IN STOCKS PRIOR TO THE FIRM'S PUBLISHING ANALYSTS' RECOMMENDATIONS THE REGIONAL BROKERAGE COMPANY BASED IN ST PETERSBURG FLA SAID THAT LAST NOVEMBER IT HAD ADVISED THE NEW YORK STOCK EXCHANGE AND THE NATIONAL ASSOCIATION OF SECURITIESDEALERS ABOUT ITS CONCERNS WHICH STEMMED FROM INCREASED TRADING VOLUME IN SEVERAL COMPANIES' SHARES SHORTLY BEFORE RAYMOND JAMES ISSUED STOCK RECOMMENDATIONS ON THE COMPANIES OFFICIALS FOR THE BIG BOARD AND NASD DECLINED TO COMMENT ON THEIR INQUIRIES INTO THE UNUSUAL TRADING SURROUNDING RAYMOND JAMES'S RECOMMENDATIONS THE NASD SAID HOWEVER THAT FRONTRUNNING ON ANALYSTS' RESEARCH RECOMMENDATIONS IS INDEED A PROBLEM AREA AND ONE THAT THE GROUP IS CURRENTLY STUDYING THE TERM FRONTRUNNING IS SECURITIES INDUSTRY JARGON FOR THE PRACTICE OF BUYING OR SELLING SECURITIES BASED ON INSIDE KNOWLEDGE OF IMPENDING TRADING IN THOSE SECURITIES ANALYSTS' BUY AND SELL REPORTS TYPICALLY TRIGGER INCREASED TRADING VOLUME AND CAN MOVE THE MARKET SIGNIFICANTLY THE POSSIBILITY OF FRONTRUNNING INVOLVING RAYMOND JAMES'S STOCK PICKS WAS FIRST REPORTED IN AN ARTICLE FRIDAY IN THE NEW YORK TIMES RAYMOND JAMES BEGAN ITS OWN INVESTIGATION LAST SUMMER AFTE INTERNAL CONTROLS SPOTTED UNUSUAL TRADING IN THE SHARES OF SOME COMPANIES SHORTLY BEFORE THE COMPANY'S RECOMMENDATIONS WERE PUBLISHED SAID LAWRENCE SILVER SENIOR VICE PRESIDENT OF MARKETING FOR THE BROKERAGE COMPANY WHICH IS A UNIT OF RAYMOND JAMES FINANCIAL INC THE INTERNAL MONITORING SHOWED UNUSUAL TRADING PRECEDING REPORTS ON BAIRNCO CORP PUBLISHED JULY 9 GENERAL CINEMA CORP PUBLISHED AUG 13 RIO HOTEL & CASINO PUBLISHED AUG 5 AND SEITEL INC PUBLISHED NOV 2 MR SILVER SAID INCREASED VOLUME ALSO PRECEDED REPORTS ON ONE PRICE CLOTHING STORES PUBLISHED SEPT 23 AND GRAND CASINOS PUBLISHED AUG 12 HE SAID THE COMPANY'S INTERNAL INVESTIGATION FAILED TO PINPOINT ANY LEAKS OF INFORMATION OR TO IDENTIFY WHO CARRIED OUT THE TRADING ACTIVITY MR SILVER SAID HE SAID THE SUSPICIOUS TRADES WEREN'T EXECUTED BY RAYMOND JAMES IN NOVEMBER AFTER SEEING AN APPARENT PATTERN OF SUCH TRADING PRIOR TO STOCK RECOMMENDATIONS RAYMOND JAMES REPORTED ITS CONCERNS TO REGULATORS MR SILVER SAID AND SINCE THAT TIME THE SUSPICIOUS TRADING HAS STOPPED THE FIRM ALSO ADOPTED A POLICY OF HOLDING OFF ON THE RELEASE OF A NEW RECOMMENDATION IF AN UNEXPLAINED RUNUP IN A STOCK PRECEDES THE PENDING RECOMMENDATION IN AN INTERVIEW THOMAS A JAMES CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RAYMOND JAMES FINANCIAL SAID THE COMPANY TRIES TO MAINTAIN AN IRON CURTAIN OF SECRECY AROUND REPORTS COMING OUT HE ADDED THAT THE FIRM ACTED RESPONSIBLY BY ALERTING REGULATORS TO AN UNTOWARD AMOUNT OF ACTIVITY BEFORE OUR RESEARCH REPORTS AN INTERNAL MEMO TO EMPLOYEES DATED AUG 10 FROM DAVID A HENWOOD DIRECTOR OF RESEARCH AT RAYMOND JAMES WHICH OUTLINED PLANS FOR TIGHTENING CONTROLS SUGGESTS WEAKNESSES IN THE COMPANY'S SYSTEMS THE MEMO SAYS THAT AMONG OTHER THINGS THE FIRM WAS ARRANGING FOR ANALYSTS AND SALESMEN TO STOP SHARING PRINTERS MAKING SURE ANALYSTS' COMPUTER DIRECTORIES AREN'T ACCESSIBLE FROM A REMOTE SITE AND ADVISING COMPANIES' MANAGEMENT OF THE IMPORTANCE OF KEEPING PENDING RECOMMENDATIONS CONFIDENTIAL IN DEFENDING HIS COMPANY MR JAMES ASSERTED THAT THE INCIDENCE OF FRONTRUNNING PRIOR TO ANALYSTS' REPORTS IS LIKELY TO BE A WIDESPREAD PROBLEM AT BROKERAGE FIRMS IF YOU LOOKED AT OTHER FIRMS YOU'D FIND EXAMPLES OF THIS AND FIND NO ACTIVITY TO CURTAIL OR INVESTIGATE IT MR JAMES SAID AT TIMES MR JAMES SAID THE SOURCE OF THE PROBLEM IS THE SUBJECT COMPANY ITSELF SOME COMPANIES ROUTINELY TALK TO PEOPLE ABOUT RESEARCH REPORTS COMING OUT HE SAID ADDING THAT THE DISCLOSURES ARE OFTEN ACTS OF CARELESSNESS AND NAIVETE RATHER THAN DELIBERATE MOVES TO PROVIDE IMPROPER TIPS THE COMPANIES JUST GET PUMPED UP BECAUSE A REPORT IS COMING OUT ON THEM HE SAID FRONTRUNNING HAS BEEN AN ISSUE AT RAYMOND JAMES IN THE PAST IN 1987 THE BIG BOARD CENSURED AND FINED ONE OF ITS ANALYSTS DAVID JONSSON FOR TELLING AN INSTITUTIONAL INVESTOR OF PLANS TO RELEASE A BUY RECOMMENDATION IN AN INTERVIEW MR JONSSON SAID HE WAS SINGLED OUT FOR A PRACTICE THAT WAS WIDESPREAD AND SANCTIONED BY RAYMOND JAMES AT THE TIME AN ACCUSATION THE COMPANY DENIES AFTER THE BIG BOARD CENSURE RAYMOND JAMES TRANSFERRED MR JONSSON OUT OF THE RESEARCH DEPARTMENT AND MADE HIM A RETAIL BROKER A JOB HE REMAINED IN UNTIL RESIGNING LAST SEPTEMBER MR JONSSON SAID IN AN INTERVIEW THAT HE LEFT BECAUSE HE OBJECTED TO PRACTICES AT THE COMPANY AND WAS DISAPPOINTED BECAUSE THE COMPANY WOULDN'T REIMBURSE HIM FOR 17000 IN LEGAL FEES AND FINES THAT GREW OUT OF THE FRONTRUNNING INCIDENT BUT MR JAMES SAID MR JONSSON HAD RAISED NO COMPLAINTS WHEN HE LEFT 9301250084 930125 BUSINESS BRIEF ANTITRUST QUESTIONS DELAY ACQUISITION OF GE AEROSPACE BY MARTIN MARIETTA BETHESDA MD MARTIN MARIETTA CORP'S PROPOSED 305 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION WILL BE DELAYED BY AT LEAST A MONTH AS FEDERAL REGULATORS HASH OUT ANTITRUST QUESTIONS BUT THE COMPANY SAID IT REMAINS CONFIDENT THE DEAL WILL BE COMPLETED THE JUSTICE DEPARTMENT HAS REQUESTED ADDITIONAL TIME TO CONSIDER THE ACQUISITION AND HAS MADE A SECOND REQUEST TO MARTIN MARIETTA FOR INFORMATION ABOUT THE PROPOSED TRANSACTION IT'S NOT THAT THEY'RE CONCERNED OR ANYTHING I SUSPECT THAT WITH THE TRANSITION IN THE ADMINISTRATION THEY HAVEN'T HAD TIME TO LOOK AT IT YET A COMPANY SPOKESMAN SAID A JUSTICE DEPARTMENT SPOKESMAN SAID THE DEPARTMENT'S REVIEW IS CONTINUING HE DECLINED FURTHER COMMENT THE TRANSACTION ISN'T EXPECTED TO BE COMPLETED UNTIL LATE MARCH OR EARLY APRIL NORMAN R AUGUSTINE MARTIN MARIETTA'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW DESPITE MARTIN MARIETTA'S ASSURANCES THAT THE ACQUISITION IS ON TRACK THE COMPANY'S STOCK PRICE FELL 2 TO 6950 A SHARE IN BIG BOARD TRADING FRIDAY THE COMPANY ALSO SAID IT HAS SUSPENDED ITS STOCK REPURCHASE PROGRAM BECAUSE OF THE COST OF THE ACQUISITION MARTIN MARIETTA SAID IT EXPECTS TO HAVE 1993 SALES OF AROUND 10 BILLION FOLLOWING THE ACQUISITION THAT WOULD BE ABOUT 10 LESS THAN THE COMBINED SALES OF THE TWO COMPANIES IN 1992 WHEN MARTIN MARIETTA HAD SALES OF 59 BILLION AND GE AEROSPACE HAD MORE THAN 5 BILLION A MARTIN MARIETTA SPOKESMAN SAID THE COMPANY HAS FACTORED IN A 10 DECLINE FOR 1993 SALES DUE TO DEFENSE BUDGET CUTS MR AUGUSTINE SAID HE ANTICIPATES SALES OF THE NEWLY ENLARGED COMPANY TO STAY IN THE GENERAL RANGE OF 10 BILLION OVER THE NEXT FEW YEARS WHILE HE DECLINED TO GIVE AN EARNINGS OUTLOOK FOR THE YEAR HE SAID THAT GE AEROSPACE HAS THE BEST MARGINS IN THE INDUSTRY WITH ANNUAL OPERATING EARNINGS OF BETWEEN 500 MILLION AND 600 MILLION THE ABSORPTION OF GE AEROSPACE WILL INCREASE MARTIN MARIETTA'S US NAVY BUSINESS TO 45 OF TOTAL SALES UP FROM 5 THIS ALLOWS US TO HEDGE OUR BETS IN TERMS OF DEFENSE BUDGET CUTS MR AUGUSTINE SAID THE BULK OF THE COMPANY'S CURRENT PENTAGON BUSINESS IS WITH THE US ARMY AND AIR FORCE AS MARTIN MARIETTA RESTRUCTURES IT MAY SHED OR SPIN OFF PART OF ITS AGGREGATES BUSINESS MR AUGUSTINE SAID THAT DIVISION IN RALEIGH NC SELLS CRUSHED STONE SAND AND GRAVEL TO THE CONSTRUCTION INDUSTRY 9301250083 930125 DIVIDEND NEWS WALMART STOCK JUMPS OVER 5 AS RETAILER DECLARES 2FOR1 SPLIT BENTONVILLE ARK WALMART STORES INC STOCK ROSE MORE THAN 5 AFTER THE RETAILER'S BOARD DECLARED A 2FOR1 STOCK SPLIT THE COMPANY SAID THE SPLIT WILL TAKE THE FORM OF A 100 STOCK DIVIDEND TO BE DISTRIBUTED FEB 25 TO STOCK OF RECORD FEB 2 ANALYSTS SAID THE COMPANY IN THE PAST HAS DECLARED SPLITS WHEN ITS STOCK HAS HIT 60 A SHARE THE MOVE IS ALSO OFTEN ACCOMPANIED BY A RUNUP IN PRICE IN TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY WALMART CLOSED AT 62625 UP 3125 THE STOCK PRICE BOOST ALSO CLOSELY FOLLOWED A SHARP DECLINE IN SHORT INTEREST IN WALMART STOCK SHORT INTEREST FELL TO 59 MILLION SHARES FROM 91 MILLION IN THE FOUR WEEKS ENDED IN MIDJANUARY TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER IF CIRCUMSTANCES CHANGE AND THEN TRADERS BELIEVE THE STOCK IS DUE TO RISE THEY COVER THEIR POSITION BY BUYING STOCK SOONER 9301250081 930125 REVIEW & OUTLOOK EDITORIAL ASIDES THURGOOD MARSHALL THE DEATH OF THURGOOD MARSHALL YESTERDAY AFTERNOON AT BETHESDA NAVAL MEDICAL CENTER INDEED MARKS THE PASSING FROM THE STAGE OF ONE OF THE US CIVIL RIGHTS MOVEMENT'S GREAT FIGURES HE SUCCESSFULLY ARGUED THE FAMOUS BROWN V BOARD OF EDUCATION SCHOOL DESEGREGATION CASE AND THEN BECAME THE NATION'S FIRST BLACK TO SERVE ON ITS HIGHEST COURT WE DISAGREED WITH JUSTICE MARSHALL IN SOME OF HIS DECISIONS BUT THERE WAS NO DISAGREEMENT OVER THE DIGNITY AND STATURE THAT THIS MAN BROUGHT TO THE COUNTRY'S JUDICIAL LIFE THAT PRESENCE WILL BE MISSED 9301250080 930125 INTERNATIONAL EDDIE GEORGE TO BE NEXT HEAD OF BANK OF ENGLAND BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EDDIE GEORGE DEPUTY GOVERNOR OF THE BANK OF ENGLAND WILL BECOME ITS GOVERNOR SUCCEEDING ROBIN LEIGHPEMBERTON WHEN HE RETIRES JUNE 30 IN CHOOSING A CENTRAL BANK INSIDER THE GOVERNMENT HAS MADE CLEAR ITS SUPPORT FOR THE BANK OF ENGLAND'S HANDLING OF TWO CONTROVERSIAL ISSUES THE MONITORING AND CLOSING OF BANK OF CREDIT & COMMERCE INTERNATIONAL AND THE DEFENSE OF STERLING BEFORE ITS WITHDRAWAL FROM THE EUROPEAN EXCHANGE RATE MECHANISM IN SEPTEMBER THE 54YEAROLD MR GEORGE JOINED THE BANK OF ENGLAND IN 1962 AFTER GRADUATING FROM CAMBRIDGE UNIVERSITY DEPUTY GOVERNOR SINCE 1990 HE IS KNOWN FOR HIS INSISTENCE ON THE NEED FOR TOUGH MONETARY POLICIES INCLUDING HIGH INTEREST RATES WHEN NECESSARY TO FIGHT INFLATION TO SUCCEED MR GEORGE AS DEPUTY GOVERNOR BRITAIN'S CENTRAL BANK IN A SURPRISE MOVE NAMED RUPERT PENNANTREA CURRENTLY THE EDITOR OF THE ECONOMIST MAGAZINE MR PENNANTREA 45 SPENT FOUR YEARS AT THE BANK OF ENGLAND AS AN ECONOMIST BETWEEN 1973 AND 1977 MR PENNANTREA JOINED THE ECONOMIST IN 1977 AT THE INVITATION OF SARAH HOGG AT THAT TIME THE MAGAZINE'S ECONOMICS EDITOR AND NOW HEAD OF PRIME MINISTER JOHN MAJOR'S PERSONAL POLICYMAKING UNIT SHE IS BELIEVED TO HAVE PLAYED A ROLE IN HIS SELECTION FOR HIS NEW JOB AT THE ECONOMIST MR PENNANTREA HAS BEEN AN ADVOCATE OF GREATER INDEPENDENCE FOR THE BANK OF ENGLAND A PROSPECT THAT MR MAJOR AND OTHER GOVERNMENT MINISTERS HAVE MADE CLEAR ISN'T PART OF THEIR PLANS AT PRESENT UNDER HIS EDITORSHIP THE ECONOMIST ALSO HAS BEEN INVOLVED IN AN ALTERCATION WITH THE BANK OF ENGLAND OVER ITS ROLE IN INVESTIGATIONS INTO THE BLUE ARROW SHARERIGGING SCANDAL INDEED MR PENNANTREA DISCLOSED FRIDAY THAT HE HAD BEEN INVITED TO TAKE UP THE DEPUTY GOVERNORSHIP ONLY THAT SAME DAY AFTER THE ECONOMIST PUBLISHED IN ITS LATEST ISSUE A FULLPAGE APOLOGY TO THE BANK OF ENGLAND CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT SAID THE MAIN RESPONSIBILITY FACING THE BANK OF ENGLAND UNDER ITS NEW LEADERSHIP WOULD BE TO CONTINUE SUPPORTING THE GOVERNMENT IN ITS ANTIINFLATION POLICIES MR GEORGE RULED OUT ANY QUICKFIX STIMULUS TO BOOST THE ECONOMY BUT ADDED THAT THE BASIS FOR A SUBSTANTIAL EXPANSION THROUGH THE 1990S IS NOW IN PLACE HE ALSO SAID INDEPENDENCE FOR THE BANK OF ENGLAND REMAINED SECONDARY TO FIGHTING INFLATION WHILE AN INDEPENDENT CENTRAL BANK IS LIKELY TO BE A KEY FEATURE OF ANY MOVES TO CLOSER EUROPEAN MONETARY UNION BRITAIN FOR THE TIME BEING HAS DETACHED ITSELF FROM THIS PROCESS AS A RESULT OF STERLING'S FLOTATION ASKED WHETHER HE CONSIDERED EUROPEAN MONETARY UNION TO BE A REASONABLE GOAL HE REPLIED THAT IN THE NEXT FEW YEARS THAT WOULD BE JOLLY AMBITIOUS 9301250079 930125 WHO'S NEWS AUSTRALIA'S WESTPAC NAMES ROBERT JOSS ITS MANAGING DIRECTOR SYDNEY AUSTRALIA WESTPAC BANKING CORP NAMED US BANKER ROBERT L JOSS MANAGING DIRECTOR THE TOP EXECUTIVE JOB AT AUSTRALIA'S OLDEST BANK MR JOSS 51 YEARS OLD CURRENTLY IS A VICE CHAIRMAN AT SAN FRANCISCO'S WELLS FARGO & CO AT WELLS FARGO HE IS RESPONSIBLE FOR PRIVATE BANKING INTERNATIONAL TRADE SERVICES THE CONSUMER CREDIT GROUP ASSET STRATEGY CORPORATE STRATEGY CORPORATE SYSTEMS PLANNING AND THE LEGAL ECONOMICS PERSONNEL AND GOVERNMENTRELATIONS DIVISIONS MR JOSS WHOSE APPOINTMENT IS EFFECTIVE NEXT MONTH SUCCEEDS FRANK CONROY WHO RESIGNED IN DECEMBER AFTER A DISPUTE WITH THE BOARD OVER THE PACE OF A PROPOSED RECOVERY PROGRAM FOR THE BANK WESTPAC WAS SHAKEN LAST YEAR BY A LOSS OF 156 BILLION AUSTRALIAN DOLLARS US104 BILLION AN UNDERSUBSCRIBED SHARE ISSUE AND SLUMP IN SHARE PRICE AN UNEXPECTED TAX CHARGE AT ITS US OPERATIONS AND THE RESIGNATIONS OF NINE DIRECTORS INCLUDING ITS CHAIRMAN AND MANAGING DIRECTOR JOHN UHRIG WESTPAC'S NEW CHAIRMAN SAID MR JOSS WILL BRING TO WESTPAC A FRESH APPROACH AND PROVIDE MOMENTUM FOR THE STRONG RECOVERY STRATEGY ALREADY IN PLACE 9301250078 930125 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA HAS AGREED TO HALT FAKE TAGS FROM BEING PLACED ON GARMENTS TO EVADE US TEXTILE QUOTAS BEIJING SAID IT WOULD PUNISH CHINESE COMPANIES THAT USED LABELS FALSELY DECLARING TEXTILES ORIGINATED IN ANOTHER COUNTRY BEIJING SAID IT WOULD COOPERATE WITH THE US TO PUT AN END TO THE ILLEGAL PRACTICE WHICH HAS HURT TRADE RELATIONS THE US LAST OCTOBER ISSUED A FEDERAL CRIMINAL INDICTMENT CHARGING CHINA NATIONAL TEXTILES IMPORT & EXPORT CORP WITH EVADING QUOTAS SET TO PROTECT THE US TEXTILE AND CLOTHING INDUSTRIES THE CHINESE COMPANY A GOVERNMENT AGENCY REPORTS DIRECTLY TO THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE AND REGULATES AND CONTROLS ALL OF THE COUNTRY'S TEXTILE IMPORTS AND EXPORTS CHINA EXPORTS ABOUT 39 BILLION OF TEXTILES TO THE US ANNUALLY THE US BELIEVES AN ADDITIONAL 2 BILLION OF THE GOODS ARE IMPORTED ILLEGALLY THROUGH OTHER COUNTRIES SUCH AS PAKISTAN MALAYSIA TAIWAN PANAMA AND HONDURAS TO AVOID QUOTAS CITY DWELLERS IN JAPAN ACCOUNT FOR 78 OF THE 124 MILLION POPULATION THE JAPAN ASSOCIATION OF CITY MAYORS SAID RESIDENTS OF 663 CITIES TOTALED 963 MILLION AS OF SEPT 30 UP 71 FROM A YEAR EARLIER THE POPULATION GREW IN 411 CITIES ESPECIALLY IN THE KANTO AND TOKAI REGIONS ON THE PACIFIC COAST SIDE OF CENTRAL HONSHU THE BIGGEST OF JAPAN'S FOUR MAIN ISLANDS THE POPULATION DECLINED IN 252 CITIES MOSTLY IN THE HOKKAIDO CHUGOKU SHIKOKU AND KYUSHU REGIONS MEANWHILE OF 226 SMALLER CITIES WITH FEWER THAN 50000 RESIDENTS THE POPULATION SHRANK IN 156 OR 69 GREECE'S PUBLICSECTOR WAGES AND PENSIONS WILL RISE 91 THIS YEAR WHEN THE AVERAGE INFLATION RATE COULD PEAK AT 125 THE GOVERNMENT WHICH HAS CUT SPENDING BOOSTED REVENUES AND SOLD OFF STATE ENTERPRISES IN A BID TO REDUCE ITS DEFICIT VOWED THAT 1993 WOULD BE THE LAST YEAR THE GOVERNMENT WORKERS' RAISES WOULDN'T COVER INFLATION GOVERNMENT INTEREST PAYMENTS OF 3175 TRILLION DRACHMAS 1472 BILLION THIS YEAR WILL BE MORE THAN DOUBLE THE WAGES OF GOVERNMENT EMPLOYEES ABOUT 5 OF THE 10 MILLION POPULATION LAST YEAR GREECE'S DEBT OF 153 TRILLION DRACHMAS EQUALED ITS GROSS DOMESTIC PRODUCT RUSSIA WANTS TO SELL TRAINER JETS TO INDIA'S AIR FORCE AND HAS JUMPED INTO THE INTERNATIONAL RACE TO CLINCH THE 500 MILLION DEAL A DEFENSE INDUSTRY SOURCE SAID THOUGH BRITAIN AND FRANCE HAVE LONG HOPED TO SELL INDIA THE AIRCRAFT RUSSIA MADE AN OFFER LAST YEAR AND COULD GET THE JOB BECAUSE OF INDIA'S HUGE DEBTS TO MOSCOW FROM TRADE WITH THE FORMER SOVIET UNION INDIA WHICH ONCE BOUGHT ABOUT 80 OF ITS MILITARY EQUIPMENT FROM THE USSR OWES RUSSIA ABOUT 15 BILLION INDIA MAY BUY 88 JETS WHICH COULD BE CONVERTED TO FIGHTERS DESPITE A 10 DECLINE TO 17627 IN REGISTERED CORPORATIONS IN THE PHILIPPINES LAST YEAR CAPITAL INVESTMENTS IN NEW AND EXISTING COMPANIES ROSE 23 TO 401 BILLION PESOS 163 BILLION FROM A YEAR EARLIER THE REPORT BY THE SECURITIES AND EXCHANGE COMMISSION SHOWED THAT OF THE TOTAL FIRMS 10998 WERE NEW DOMESTIC STOCK COMPANIES AND 6629 WERE NONSTOCK CORPORATIONS OR REGIONAL HEADQUARTERS OF MULTINATIONALS OF THE INVESTMENTS INITIAL CAPITAL IN NEW CONCERNS ROSE 16 TO 858 BILLION PESOS TRADE BETWEEN JAPAN AND CHINA LAST YEAR SURGED 27 TO A RECORD 2891 BILLION FROM A YEAR EARLIER THE SUM IS EXPECTED TO TOP 30 BILLION THIS YEAR THE JAPAN EXTERNAL TRADE ORGANIZATION SAID THE AGENCY ATTRIBUTED THE EXPANSION TO CHINA'S RECENT TRADE LIBERALIZATION INCLUDING THE LIFTING OF BANS ON IMPORTS TO AVOID FRICTION WITH TRADING PARTNERS JAPAN'S 1992 EXPORTS TO CHINA CLIMBED 39 TO 1196 BILLION MORE THAN HALF OF THE SHIPMENTS WERE MACHINE TOOLS WHICH SOARED 62 JAPAN'S IMPORTS FROM CHINA ADVANCED 19 TO 1695 BILLION MAINLY FARM PRODUCTS AND CLOTHING BULGARIA SAID IT PLANNED TO PRIVATIZE BETWEEN 80 AND 100 ENTERPRISES THROUGH AUCTIONS BY THE END OF THIS YEAR AND IT WELCOMED FOREIGN INVESTMENT THE GOVERNMENT IS STRUGGLING TO ESTABLISH FREE ENTERPRISE AND REBUILD ITS ECONOMY IN WHICH THE PRIVATE SECTOR ACCOUNTS FOR ONLY ABOUT 4 OF OWNERSHIP SO FAR IT HAS LICENSED JUST 17 JOINT VENTURES THE PRIVATIZATION PROGRAM HAS BEEN HINDERED PARTLY BY PRODUCTION DECLINES AND A LACK OF CREDITS AND FINANCIAL INCENTIVES BULGARIA SAID ONLY 30 OF INDUSTRIAL COMPANIES ARE PROFITABLE AND THEIR FIXED ASSETS EXCEEDS THEIR LIABILITIES SELLOFFS OF MEDIUMSIZED AND LARGE STATEOWNED COMPANIES INCLUDING BALKAN AIRLINES WILL BE CONDUCTED ALONG WITH SMALL PRIVATIZATIONS OF SHOPS AND RESTAURANTS THE INDUSTRY MINISTRY HAS DESIGNATED ENTERPRISES THAT ARE READY FOR PRIVATIZATION THAT NEED TO BE RESTRUCTURED FIRST OR THAT SHOULD BE FOLDED THOUGH BULGARIA DOESN'T HAVE CLEARCUT LEGISLATION TO REGULATE LIQUIDATION OF BANKRUPT BUSINESSES BEIJING CITIZENS CAUGHT ENTREPRENEURIAL FEVER LAST YEAR LAUNCHING AN AVERAGE OF 106 ENTERPRISES EVERY DAY THE RUSH BALLOONED THE NUMBER OF FIRMS IN THE CHINESE CAPITAL TO 126227 UP A THIRD FROM 1991 MUNICIPAL UNDERTAKERS IN LVOV UKRAINE FIRED THEIR FUNERAL BAND IN THE EMERGING FREE MARKET THE SPECIALIZED ORCHESTRA RAISED ITS PRICES AND DEMAND DRIED UP 9301250077 930125 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ACE LTD AN INITIAL OFFERING OF 142 MILLION COMMON SHARES VIA JP MORGAN SECURITIES INC MORGAN STANLEY & CO AND SG WARBURG SECURITIES DISCOVER RECEIVABLES FINANCING GROUP INC AN INDIRECT WHOLLY OWNED SUBSIDIARY OF SEARS ROEBUCK & CO A SHELF OFFERING OF 748 MILLION OF CREDIT CARD PASSTHROUGH CERTIFICATES VIA DEAN WITTER REYNOLDS INC GOLDMAN SACHS & CO JP MORGAN AND SALOMON BROTHERS INC ETHAN ALLEN INTERIORS INC REGISTERED TO OFFER 73 MILLION COMMON SHARES VIA KIDDER PEABODY & CO DILLON READ & CO AND SMITH BARNEY HARRIS UPHAM & CO NACIONAL FINANCIERA SNC A SHELF OFFERING OF 250 MILLION OF NOTES VIA SALOMON BROTHERS LEHMAN BROTHERS INC AND JP MORGAN PROFFITT'S INC REGISTERED TO OFFER 2250000 COMMON SHARES VIA FIRST BOSTON CORP AND MORGAN KEEGAN & CO S3 INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA LEHMAN BROTHERS AND COWEN & CO SAXON MORTGAGE SECURITIES CORP A UNIT OF SAXON MORTGAGE FUNDING CORP A SHELF OFFERING OF 1 BILLION OF MORTGAGE PARTICIPATION SECURITIES 9301250076 930125 MARKETING BRIEF NOTED MAGAZINES NEWS CORP'S TV GUIDE WILL LAUNCH A MAGAZINE IN MAY CALLED TV GUIDE'S PARENTS' GUIDE TO CHILDREN'S ENTERTAINMENT THE QUARTERLY MAGAZINE FOR SALE ONLY ON NEWSSTANDS IS AIMED AT HELPING PARENTS FIND THE BEST ENTERTAINMENT FOR CHILDREN IN TV VIDEO MOVIES MUSIC BOOKS AND TOYS TV GUIDE'S EDITOR IN CHIEF ANTHEA DISNEY WILL ALSO BE EDITOR IN CHIEF OF THE NEW MAGAZINE 9301250075 930125 ALDEN PRESS CO OFFER BEGINS NEW YORK KOHLBERG KRAVIS ROBERTS & CO AFFILIATE APC MERGER CORP BEGAN AN OFFER FOR SPECIALTY CATALOG PRINTER ALDEN PRESS CO FOR 15 A SHARE OR ABOUT 110 MILLION ALDEN PRESS BASED IN THE CHICAGO SUBURB OF ELK GROVE VILLAGE WENT PRIVATE IN 1986 THROUGH A MANAGEMENTLED LEVERAGED BUYOUT IN WHICH KKR DIDN'T PARTICIPATE THE PRINTER'S LATEST NINEMONTH EARNINGS WERE 26 MILLION ON REVENUE OF 1265 MILLION ALDEN WENT PUBLIC IN AUGUST THROUGH A 9ASHARE INITIAL OFFERING THE OWNERS INITIALLY HAD HOPED TO SELL 32 MILLION SHARES AT 1150 TO 1350 APIECE BUT REFLECTING THE THENSOFT INITIAL PUBLIC OFFERING MARKET THE OFFERING WAS FIRST DELAYED AND THEN TRIMMED TO 25 MILLION SHARES AT 9 EACH THE OFFER IS SCHEDULED TO EXPIRE FEB 26 9301250074 930125 NOTABLE & QUOTABLE SUZANNE GARMENT IN THE JAN/FEB ISSUE OF THE AMERICAN ENTERPRISE ON WHY RECENT POLLS SHOW THAT YOUNG ADULTS WERE MORE LIKELY THAN OLDER ONES TO SIDE WITH CLARENCE THOMAS OVER ANITA HILL THE FIGURES MAY PROVIDE SOME CLUES TO WHAT LIES AHEAD FOR OUR POLITICS THEY SUGGEST THAT YOUNG VOTERS ARE LESS MOVED THAN THE BABY BOOM GENERATION BY THE POLITICAL SYMBOLISM OF A CONTROVERSY LIKE THE HILLTHOMAS DISPUTE YOUNGER VOTERS SEE A WORLD OF SCARCITY IN WHICH SURVIVAL REQUIRES STREET SMARTS AND PRAGMATISM THE YOUNG HAVE A PROFOUND MISTRUST OF MORALISTS IDEOLOGUES AND THE READY ATTRIBUTION OF GOOD AND EVIL IT IS NO ACCIDENT IN THIS VIEW THAT THE YOUNG ARE SIMPLY NOT PAYING AS MUCH ATTENTION TO THE MAINSTREAM THE GREAT CHANGE IN PEOPLE'S VIEWS OF ANITA HILL OVER THE PAST YEAR IS CLEAR TESTIMONY TO THE POWER OF INTELLECTUAL AND CULTURAL LEADERS TO CREATE A NEW AND MORE DIVISIVE POLITICAL REALITY AMONG THEIR FELLOW CITIZENS 9301250073 930125 MOBIL'S NET INCOME ROSE 29 FOR QUARTER AIDED BY LOWER COSTS FAIRFAX VA MOBIL CORP REPORTED A 29 INCREASE IN FOURTHQUARTER EARNINGS AFTER NUMEROUS SPECIAL ITEMS WHILE OPERATING PROFIT JUMPED 50 THE OIL COMPANY SAID IT BENEFITED FROM SHARPLY LOWER EXPLORATION EXPENSES STRONG PROFIT MARGINS IN THE FAR EAST AND EUROPE AND IMPROVEMENTS IN DOMESTIC REFINING AND MARKETING THE OIL COMPANY ALSO CITED LOWER PAYROLL COSTS FOR THE YEAR THE NUMBER OF DOMESTIC SALARIED EMPLOYEES FELL BY 2300 OR 11 AND THE DIVESTITURE OF 900 MILLION IN ASSETS FOR THE QUARTER MOBIL EARNED 514 MILLION OR 125 A SHARE COMPARED WITH 400 MILLION OR 97 CENTS A SHARE A YEAR EARLIER REVENUE WAS ESSENTIALLY FLAT AT 172 BILLION THE PROFIT FIGURES BETTER THAN ANALYSTS EXPECTED WERE PARTICULARLY IMPRESSIVE IN THE FACE OF RELATIVELY LOW OIL PRICES SLIM PROFIT MARGINS ON REFINED PRODUCTS AND SLACK DEMAND THIS WAS A POSITIVE SURPRISE SAID FRANK KNUETTEL AN ANALYST WITH PRUDENTIAL SECURITIES MOBIL HAD RESTRUCTURING CHARGES OF 49 MILLION PROPERTY WRITEDOWNS OF 123 MILLION AND ENVIRONMENTAL CHARGES OF 60 MILLION THOSE CHARGES WERE PARTIALLY OFFSET BY GAINS OF 85 MILLION IN ASSET SALES AND 78 MILLION IN INVENTORY TAX AND OTHER ADJUSTMENTS THE YEAREARLIER QUARTER INCLUDED A GAIN OF 12 MILLION EXCLUDING SPECIAL ITEMS OPERATING EARNINGS WERE 583 MILLION UP FROM 388 MILLION FOR THE YEAR MOBIL'S NET INCOME WAS 863 MILLION OR 201 A SHARE COMPARED WITH 192 BILLION OR 465 A SHARE A YEAR EARLIER THE 1992 FIGURE INCLUDES AN ACCOUNTING CHARGE OF 446 MILLION OR 112 A SHARE FOR POSTRETIREMENT BENEFITS ADDITIONALLY THE YEAR INCLUDED SPECIAL CHARGES OF 180 MILLION COMPARED WITH GAINS OF 26 MILLION A YEAR EARLIER REVENUE INCHED UP 1 TO 6382 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY MOBIL SHARES ROSE 25 CEN TO CLOSE AT 6025 9301250072 930125 WHO'S NEWS PUBLIC SERVICE ENTERPRISE GROUP INC PUBLIC SERVICE ENTERPISE GROUP INC NEWARK NJ ERNEST H DREW AND RAYMOND V GILMARTIN WERE NAMED DIRECTORS AT THIS UTILITY HOLDING COMPANY INCREASING THE BOARD TO 13 MEMBERS DR DREW 55 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OF HOECHST CELANESE CORP THE SOMERVILLE NJ UNIT OF GERMAN CHEMICAL AND PHARMACEUTICALS COMPANY HOECHST AG MR GILMARTIN 51 IS PRESIDENT CHIEF EXECUTIVE AND CHAIRMAN OF BECTON DICKINSON & CO A HEALTH CARE PRODUCTS AND DIAGNOSTIC SYSTEMS CONCERN IN FRANKLIN LAKES NJ 9301250070 930125 JAPAN FIGHTS UPHILL BATTLE TO AID STOCKS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A BIG TEST OF WILLS IS PLAYING OUT IN THE BATTERED TOKYO STOCK MARKET AND IT'S ONLY LIKELY TO GET MORE INTENSE AND POSSIBLY DISRUPTIVE TO THE MARKET AS MARCH 31 APPROACHES LATELY TRADERS SAY THE JAPANESE GOVERNMENT HAS BEEN STEMMING THE RELENTLESS SLIDE IN THE NIKKEI 225STOCK INDEX BY BUYING SHARES WITH VAST AMOUNTS OF MONEY FROM THE POSTAL SAVINGS SYSTEM AND OTHER FUNDS ONE KEY OBJECTIVE IS APPARENTLY TO KEEP STOCK PRICES HIGH ENOUGH THAT BANKS AND OTHER CORPORATIONS WITH BIG STOCK PORTFOLIOS WON'T HAVE TO DECLARE MAJOR LOSSES ON THEIR INVESTMENTS WHEN THE FISCAL YEAR ENDS MARCH 31 THE BANKS ARE A PARTICULAR WORRY THEY HAVE TO MEET CAPITALADEQUACY REQUIREMENTS BY THAT DATE AND ASSETS SUCH AS STOCKS FIGURE INTO THE EQUATION BUT THE GOVERNMENT IS FIGHTING NATURE JAPAN'S ECONOMY IS IN THE DUMPS CORPORATE PROFITS ARE PLUMMETING AND MANY COMPANIES ARE HEEDING THE PRESSURE TO RAISE CASH BY UNLOADING STOCKS SELLING INTO THE GOVERNMENT'S BUYING WE NO LONGER HAVE A JAPANESE STOCK MARKET WE HAVE AN INSTRUMENT OF GOVERNMENT POLICY SAYS STEPHEN B COHEN MANAGING DIRECTOR OF WARBURG INVESTMENT TRUST MANAGEMENT CO HE CALCULATES THAT THE JAPANESE GOVERNMENT IS POURING MONEY INTO THE MARKET AT AN ANNUALIZED RATE OF SIX TRILLION YEN 48 BILLION TO SUPPORT STOCK PRICES SO FAR THIS MONTH THE SELLERS ARE BESTING THE GOVERNMENT THE NIKKEI AVERAGE IS OFF 588 POINTS OR 35 SINCE DEC 31 IT CLOSED FRIDAY AT 1633681 DOWN 20187 POINTS INVESTORS ARE EVEN MORE SCARCE THAN THEY WERE IN 1992 TRADING VOLUME IS LOWER THAN LAST YEAR'S SLUGGISH DAILY AVERAGE OF 263 MILLION SHARES HOW MUCH CAN THE GOVERNMENT AFFORD TO PLOW INTO THE MARKET THERE'S ABOUT ONE TRILLION YEN IN GOVERNMENT PENSIONFUND MONEY ALLOCATED FOR STOCKS IN AUGUST JAPAN ALSO SET ASIDE A SPECIAL 11 TRILLION YEN FUND TO SUPPORT THE MARKET AND ADDED AN ADDITIONAL 17 TRILLION YEN IN A SUPPLEMENTARY BUDGET IN DECEMBER A FURTHER 26 TRILLION YEN WILL BE AVAILABLE TO OFFICIALS AFTER THE FISCAL YEAR BEGINS APRIL 1 AS WILL AN ADDITIONAL ONE TRILLION YEN IN PENSION MONEY IF THE GOVERNMENT NEEDS MORE IT'S JUST A QUESTION OF PASSING NEW LEGISLATION THERE'S A MARKET RUMOR THE GOVERNMENT WILL SPEND 15 TO 30 TRILLION YEN TO PROP UP STOCKS SAYS OSAMU YASAKA A TRADER AT NIKKO SECURITIES CO OTHERWISE HE SAYS THE SUPPORT EFFORT WON'T WORK BUT MR YASAKA BELIEVES OFFICIALS WON'T WANT TO SPEND THAT MUCH AND WILL EVENTUALLY OPT INSTEAD TO TRY TO BOOST THE ECONOMY AND THUS STOCK PRICES BY INCREASING PUBLIC SPENDING AND LOWERING INTEREST RATES BY CUTTING JAPAN'S DISCOUNT RATE THE JAPANESE GOVERNMENT WHICH OFFICIALLY SAYS ITS INTENTION ISN'T TO PROP UP THE NIKKEI HAS BEEN BATTLING WIDESPREAD INVESTOR BEARISHNESS FOR MONTHS IN THE 1992 FOURTH QUARTER INSURANCE COMPANIES CORPORATIONS SECURITIES HOUSES AND INDIVIDUALS WERE NET SELLERS OF STOCKS COLLECTIVELY UNLOADING 709 BILLION YEN OF JAPANESE SHARES THE GOVERNMENT MEANWHILE APPARENTLY ABSORBED THE SELLING NET PURCHASES OF STOCKS BY BANKS THROUGH WHICH THE GOVERNMENT FUNNELS ITS BUYING ROCKETED TO 815 BILLION YEN IN THE QUARTER UP FROM 230 BILLION YEN IN THE THIRD QUARTER THE TREND HAS APPARENTLY CONTINUED THIS YEAR ANALYSTS SAY 270 BILLION YEN IN POSTAL INSURANCE MONEY WAS ALLOCATED TO JAPANESE TRUST BANKS IN EARLY JANUARY FOR STOCK PURCHASES WHAT HAPPENS AFTER THE CRITICAL MARCH 31 DATE PASSES IS ANYONE'S GUESS LAST YEAR THE MARKET PLUNGED IN APRIL AND A FEW TRADERS ARE BRACING FOR THE SAME THIS YEAR BUT WITH THE GOVERNMENT PLAYING SUCH AN INTERVENTIONIST ROLE THESE DAYS SOME INVESTORS SAY THEY WOULD LIKELY BUY STOCKS IF THE NIKKEI DIPS EVEN BELOW 16000 BECAUSE IT'S AT THAT LEVEL THEY BELIEVE THE GOVERNMENT WILL STEP IN LIFE INSURERS AND PENSION FUNDS WILL BUY STOCKS AND STOCK FUTURES BELOW 16000 SAYS YOICHIRO ASAKURA ASSISTANT MANAGER OF SECURITIES AT MITSUI MUTUAL LIFE INSURANCE CO MANY JAPANESE SECURITIES HOUSES INSIST THE STOCK MARKET WILL PICK UP THIS SPRING AS INVESTORS GET THEIR FIRST WHIFF OF A JAPANESE ECONOMIC RECOVERY BUT EVEN IF THERE IS A RECOVERY AND THERE'S NO SIGN OF THAT YET THE MARKET MAY FACE NEW PROBLEMS BY THAT TIME FOR ONE THING MANY CORPORATIONS HAVE AN ESTIMATED 33 TRILLION YEN IN CORPORATE DEBT COMING DUE IN APRIL AND MAY AND THERE ARE FEARS THEY WILL SELL STOCK TO RAISE CASH TO PAY DOWN THE DEBT THAT WOULD BE A NEW DRAG ON STOCK PRICES AND THE GOVERNMENT MAY BE FORCED TO INCREASE ITS ALREADY HEFTY STOCK SPENDING FOR A TRULY PESSIMISTIC VIEW INVESTORS CAN LISTEN TO TETSUO TSUKIMURA CHIEF ECONOMIST AT SMITH BARNEY HARRIS UPHAM INTERNATIONAL INC FUNDAMENTALLY THE MARKET SHOULD BE AT 6000 ARGUES MR TSUKIMURA WHO IS CONSIDERABLY MORE BEARISH THAN MOST ANALYSTS HE BELIEVES GOVERNMENT OFFICIALS WILL HAVE TO PUMP MONEY INTO THE MARKET FOR MANY YEARS IN ORDER TO HOLD THE NIKKEI ABOVE 16000 THE MINIMUM FOR BANKS TO MEET THEIR REQUIREMENTS CAPITAL 9301250069 930125 IBM IS SAID TO MULL GIVING NEW POWERS TO PANEL OF INFLUENTIAL OUTSIDE DIRECTORS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S BOARD UNDER MOUNTING PRESSURE TO BE MORE ASSERTIVE TOWARD THE COMPANY'S TOP MANAGEMENT MAY GIVE NEW POWERS TO A COMMITTEE OF ITS MOST INFLUENTIAL OUTSIDE DIRECTORS A BIG INVESTOR GROUP SAYS IBM HAS BEEN BRIEFING IT ABOUT A TENTATIVE PLAN TO EXPAND THE AUTHORITY OF FIVE OUTSIDE DIRECTORS WHO MAKE UP THE BOARD'S EXECUTIVE COMPENSATION COMMITTEE ONE POSSIBILITY IS THAT THE PANEL COULD TAKE ON THE JOB OF NOMINATING NEW DIRECTORS WHICH IS CURRENTLY HANDLED BY A COMMITTEE DOMINATED BY TOP IBM EXECUTIVES THE OUTSIDERS INCLUDE THE TWO LONGTIME FRIENDS WHO ARE WIDELY DESCRIBED AS THE IBM BOARD'S MOST POWERFUL OUTSIDERS RETIRED JOHNSON & JOHNSON CHAIRMAN JAMES BURKE AND CAPITAL CITIES/ABC INC CHAIRMAN THOMAS MURPHY THE PLANS TO ALTER THE IBM BOARD'S STRUCTURE ARE COMING UNDER SCRUTINY AS DIRECTORS FACE A CRUCIAL MEETING TOMORROW WITH THE COMPANY IN CRISIS AND SOME CRITICS CRYING FOR CHAIRMAN JOHN AKERS TO STEP DOWN DIRECTORS WILL ALSO BE DISCUSSING THE FATE OF IBM'S VAUNTED DIVIDEND WALL STREET'S CURRENT CONSENSUS BET IS THAT THE BOARD WILL CUT THE 484ASHARE ANNUAL PAYOUT IN HALF BUT LATELY THE ARMONK NY COMPUTER MAKER HAS QUIETLY BEGUN TRYING TO MOLLIFY ITS CRITICS AND AVOID A FUROR AT ITS LATEAPRIL ANNUAL MEETING IBM FACES FOUR TOUGH SHAREHOLDER RESOLUTIONS FROM A WASHINGTON INVESTORS' ASSOCIATION INCLUDING ONE SPECIFICALLY CALLING FOR OUTSIDE DIRECTORS TO HAVE THE JOB OF NOMINATING NEW BOARD MEMBERS THE GROUP UNITED SHAREHOLDERS ASSOCIATION ALSO WANTS IBM TO STRIP MR AKERS OF HIS CHAIRMAN'S TITLE AND GIVE IT TO AN OUTSIDER AND TO APPOINT A PANEL OF INDEPENDENT DIRECTORS TO HIRE LAWYERS AND INVESTMENT BANKERS TO EVALUATE THE COMPANY'S STRATEGIC DIRECTION A FOURTH PROPOSAL WOULD MAKE IBM PEG ITS EXECUTIVE PAY MORE CLOSELY TO ITS STOCK PRICE EARLIER THIS MONTH THE COMPANY DISPATCHED SENIOR VICE PRESIDENT FRANK METZ TO WASHINGTON TO TRY TO PERSUADE THE ASSOCIATION TO CALL OFF ITS PROPOSALS ASSOCIATION OFFICIALS SAID ACCORDING TO RALPH WHITWORTH THE ASSOCIATION'S PRESIDENT MR METZ OFFERED A COMPROMISE IBM WOULD CAPITULATE ON THE ISSUE OF BOARD NOMINATIONS AND WOULD ALSO MODIFY ITS EXECUTIVEPAY SCHEME IBM OFFICIALS REFUSED TO RESPOND TO MR WHITWORTH'S ACCOUNT OR DISCUSS THE SHAREHOLDER PROPOSALS AT ALL WE'RE IN VARYING STAGES OF DISCUSSION ON THESE ISSUES AND WE PREFER NOT TO COMMENT ON THEM AT THIS TIME A COMPANY SPOKESMAN SAID MR WHITWORTH CALLED HIS MEETING WITH IBM'S MR METZ VERY CONSTRUCTIVE BUT SAID HIS GROUP PLANS TO KEEP PUSHING ITS PROPOSALS NOMINATING NEW DIRECTORS HAS BECOME AN IMPORTANT BATTLEGROUND IN THE FIGHT TO GIVE OUTSIDE BOARD MEMBERS A BIGGER ROLE IN CORPORATE AMERICA OVER THE LAST THREE YEARS HALLIBURTON CO HUMANA INC INTEL CORP LIZ CLAIBORNE INC MARRIOTT CORP MATTEL INC AND SEVERAL OTHER COMPANIES HAVE ALL CREATED INDEPENDENT NOMINATING COMMITTEES ACCORDING TO THE INVESTOR RESPONSIBILITY RESEARCH CENTER MANY OF THESE COMPANIES WERE RESPONDING TO PRESSURE FROM BIG PENSION FUNDS A 1992 NATIONAL ASSOCIATION OF CORPORATE DIRECTORS SURVEY OF 653 CHIEF EXECUTIVES FOUND THAT 46 BELIEVED A BOARD'S NOMINATING COMMITTEE SHOULD HAVE ONLY OUTSIDERS BUT AT IBM NOMINATING NEW DIRECTORS HAS LONG BEEN THE PURVIEW OF THE BOARD'S EXECUTIVE COMMITTEE OF WHICH FORMER IBM CHIEF EXECUTIVE JOHN OPEL IS CHAIRMAN MR AKERS AND IBM PRESIDENT JACK KUEHLER ALSO SIT ON THE EXECUTIVE COMMITTEE AS DO FOUR OUTSIDERS NOW PEOPLE FAMILIAR WITH IBM SAY THE COMPANY IS STUDYING A PLAN TO YIELD THE NOMINATING ROLE TO THE BOARD'S COMPENSATION COMMITTEE SOME INVESTORS SAY THEY HAVE ALSO HEARD TALK THAT IBM MIGHT RENAME THE PANEL THE EXECUTIVE AFFAIRS COMMITTEE AND GIVE IT AN EVEN BROADER NEW MANDATE INCLUDING OVERSEEING THE CHOICE OF MR AKERS'S SUCCESSOR AND OTHER EXECUTIVE APPOINTMENTS BESIDES MESSRS BURKE AND MURPHY THE COMPENSATION COMMITTEE HAS THREE OTHER OUTSIDERS STEPHEN D BECHTEL JR RETIRED CHAIRMAN OF BECHTEL GROUP INC THOMAS F FRIST JR CHAIRMAN OF HOSPITAL CORP OF AMERICA AND J RICHARD MUNRO RETIRED COCHAIRMAN OF TIME WARNER INC MESSRS BECHTEL BURKE MUNRO AND MURPHY ALSO HAVE SPECIAL CLOUT AS THE FOUR OUTSIDERS ON THE EXECUTIVE COMMITTEE MR BURKE LAST FALL STRONGLY DEFENDED MR AKERS'S PERFORMANCE AND STRATEGY AT IBM SINCE THEN OUTSIDE DIRECTORS HAVE REPEATEDLY REFUSED TO RESPOND TO QUESTIONS ABOUT THE COMPANY IN THE PAST IBM HAS ARGUED THAT ITS EXECUTIVE COMMITTEE ACTS INDEPENDENTLY IN CHOOSING BOARD MEMBERS DESPITE THE HEAVY PRESENCE OF TOP INSIDERS WE BELIEVE THAT THE COMPOSITION OF THE COMMITTEE ACHIEVES THE OBJECTIVE OF A NOMINATING COMMITTEE WHICH EXERCISES INDEPENDENT JUDGMENT WROTE IBM SECRETARY JOHN HICKEY IN A LETTER LAST FALL TO THE UNITED SHAREHOLDERS GROUP MR HICKEY NOTED THAT ANY STOCKHOLDER CAN NOMINATE A DIRECTOR BY SUBMITTING THE CANDIDATE'S NAME BIOGRAPHICAL DATA AND QUALIFICATIONS 9301250067 930125 FOREIGN EXCHANGE WORLD CURRENCY MARKETS AWAIT NEWS OF US GERMAN ECONOMIC PROGRAMS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK POLITICAL NEWS WILL DOMINATE THE CURRENCY MARKETS THIS WEEK AS TRADERS AND ANALYSTS TRY TO GAUGE HOW ECONOMIC PROGRAMS IN THE US AND GERMANY WILL AFFECT INTEREST RATES IF ANY DETAILS OF THE CLINTON ADMINISTRATION'S ECONOMIC PLANS ARE RELEASED DEALERS AND INVESTORS WILL DISSECT THEM FOR THEIR POSSIBLE IMPACT ON MONETARY POLICY AT THE SAME TIME PROGRESS ON GERMANY'S SOCALLED SOLIDARITY PACT AND WAGE NEGOTIATIONS WILL BE WATCHED FOR THEIR EFFECT ON THE BUNDESBANK'S WILLINGNESS TO LOWER RATES THESE DEVELOPMENTS WILL OFFER CLUES ABOUT TIMING RATHER THAN SUBSTANCE TRADERS SAY MOST MARKET PLAYERS EXPECT GERMAN RATES TO FALL SOME TIME THIS YEAR WHILE US RATES HOLD FIRM FRIDAY'S SHARP DROP IN THE DOLLAR AGAINST THE MARK DIDN'T REFLECT A CHANGE IN THOSE EXPECTATIONS TRADERS ATTRIBUTE THE MOVE PRIMARILY TO TECHNICAL TRADING IN WHICH CERTAIN PRICE LEVELS TRIGGER A BURST OF BUY OR SELL ORDERS BASED ON ANALYSTS' CHARTS OF TRADING PATTERNS AND MUCH OF THE DOLLAR'S MOVE FRIDAY WAS A SECONDARY EFFECT OF CROSSTRADING AMONG NONDOLLAR CURRENCIES ESPECIALLY STERLINGMARK AND MARKYEN DEALERS SAY I DON'T THINK SENTIMENT HAS CHANGED SAYS EARL JOHNSON FOREIGN EXCHANGE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO WE FOUND A CEILING AT 165 MARKS A WEEK AND A HALF AGO AND ONCE YOU FIND THE CEILING YOU START PROBING THE BOTTOM IN LATE NEW YORK TRADING FRIDAY THE DOLLAR WAS AT 15905 MARKS DOWN FROM 16138 MARKS LATE THURSDAY AND AT 12510 YEN UP FROM 12480 YEN THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 15920 MARKS AND AT 12488 YEN DETAILS OF PRESIDENT CLINTON'S ECONOMIC PROGRAM WOULD AFFECT CURRENCY PRICES BECAUSE THE ADMINISTRATION'S POLICIES ARE STILL UNKNOWNS SAYS CHESTER RUBEN CHIEF FOREIGN EXCHANGE TRADER AT CONTINENTAL BANK IN CHICAGO IF THEY COME OUT WITH SPECIFIC ITEMS THAT WILL MOVE THE MARKETS BECAUSE IT'S GOING TO BE A SURPRISE HE SAYS ON FRIDAY THE ADMINISTRATION SAID THAT IT WOULD SOON HAVE AN ANNOUNCEMENT OF A FISCAL STIMULUS PACKAGE PROGRESS IN GERMANY'S SOLIDARITY PACT AND LABOR NEGOTIATIONS MAY ALSO HOLD CLUES ABOUT THE TIMING OF GERMAN RATE CUTS THE BUNDESBANK MUST BE SATISFIED THAT GOVERNMENT BORROWING AND WAGE INCREASES WON'T FUEL INFLATION BEFORE IT WILL EASE MONETARY POLICY ECONOMISTS SAY THE BUNDESBANK HAS MADE IT QUITE CLEAR THAT CHANGES IN ITS POLICY ARE CONDITIONAL ON CHANGES IN OTHER PEOPLE'S POLICIESCONTAINMENT OF THE GOVERNMENT DEFICIT AND MODERATION IN WAGE INCREASES SAYS KEVIN LOGAN CHIEF ECONOMIST AT SWISS BANK CORP GERMANY'S GOVERNING COALITION HAS PROPOSED A PROGRAM OF SPENDING CUTS AND TAX INCREASES DESIGNED TO REDUCE GOVERNMENT BORROWING BUT THE OPPOSITION SOCIAL DEMOCRATIC PARTY DOESN'T LIKE THE FACT THAT THE SPENDING CUTS ARE SLATED TO BE IMPOSED IMMEDIATELY WHILE THE TAX INCREASES WOULDN'T TAKE PLACE UNTIL 1995 MR LOGAN SAYS EVEN IF THE PROGRAM TAKES EFFECT IT MAY NOT SATISFY THE BUNDESBANK HE ADDS THE PLAN EVEN AS STATED DOESN'T REALLY CUT BACK ON GOVERNMENT BORROWING WAGE NEGOTIATIONS ARE ON A MORE PROMISING TRACK MR LOGAN SAYS THERE ARE SIGNS THAT THE WAGE INCREASES BEING NEGOTIATED WILL BE RELATIVELY MODEST HE SAYS SO ON THAT BASIS THERE MAY BE ROOM FOR THE BUNDESBANK TO MOVE BUT THE DOLLAR'S ROOM TO RISE OR FALL AGAINST THE MARK ON GERMAN RATE PROSPECTS IS LIMITED TRADERS SAY BECAUSE THE BUNDESBANK'S CAUTIOUS APPROACH TO CUTTING RATES IS WELL KNOWN YOU CAN'T MAKE ANY MORE MONEY BETTING ON A GERMAN RATE CUT SAYS MR RUBEN OF CONTINENTAL BANK EVERYONE IN THE BUNDESBANK FROM PRESIDENT HELMUT SCHLESINGER TO THE CLEANING LADY HAS BEEN SAYING RATES WILL COME DOWN SLOWLY AND GRADUALLY THAT PATTERN WILL KEEP THE DOLLAR FROM MOVING OUTSIDE OF ITS RECENT RANGE WHICH WAS CAPPED AT 165 MARKS ANALYSTS SAY NO MATTER HOW OPTIMISTIC A DEALER IS ABOUT THE DOLLAR'S LONGTERM PROSPECTS HIGH GERMAN RATES AND LOW US RATES MAKE IT EXPENSIVE TO HOLD DOLLARS FOR NOW THE LIKELY SCENARIO FOR THE NEXT THREE TO FOUR MONTHS IS THAT GERMAN RATES WILL GRIND DOWN VERY GRADUALLY SAYS RONALD LEVEN GLOBAL CURRENCY STRATEGIST AT MORGAN GUARANTY TRUST CO THAT WILL PROBABLY BE ENOUGH TO KEEP THE ERM THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM QUIET AND UNDER CONTROL BUT NOT ENOUGH TO MAKE HOLDING DOLLARS ATTRACTIVE HE SAYS 9301250066 930125 WORLD MARKETS TOKYO SHARES SLIDE LEAVING NIKKEI OFF 12 LONDON EXTENDS RALLY FRANKFURT HITS '93 HIGH A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES TUMBLED BROADLY FRIDAY AND THE NIKKEI AVERAGE LOST 12 TO END BELOW 16500 FOR THE FIRST TIME IN MORE THAN TWO MONTHS LONDON SHARES' WINNING STREAK GREW TO THREE SESSIONS ON CONTINUING HOPES FOR LOWER INTEREST RATES FRANKFURT EQUITIES ROSE PROPELLING THE MAIN INDEX TO A 1993 HIGH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 2850 POINTS THURSDAY SLID 20187 TO 1633681 ITS LOWEST FINISH SINCE NOV 17 WHEN IT FELL TO 1599348 THE FRIDAY CLOSE WAS JUST ONE POINT ABOVE THE INTRADAY LOW THE NIKKEI HAD BEEN AS HIGH AS 1654088 ON MONDAY THE NIKKEI INDEX FELL 6431 POINTS TO CLOSE THE MORNING SESSION AT 1627250 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 180 MILLION SHARES COMPARED WITH 1991 MILLION THURSDAY DECLINERS TROUNCED GAINERS 656216 AND 202 ISSUES WERE UNCHANGED THE TOKYO STOCK PRICE INDEX OF ALL FIRST SECTION SHARES WHICH SLIPPED 142 POINTS THURSDAY DROPPED 796 TO 125670 TOKYO DEALINGS WERE LARGELY TECHNICAL AS INSTITUTIONS AND INDIVIDUALS KEPT TO THE SIDELINES FOREIGN INVESTORS WERE AMONG THE SELLERS A STRING OF REMARKS BY JAPANESE OFFICIALS INDICATING CONCERN ABOUT THE FLAGGING ECONOMY BUT LACKING ANY IMMEDIATE ACTION ONLY EXACERBATED THE MARKET'S WAITANDSEE MOOD IN THE FINAL HOUR OF TRADING PRIME MINISTER KIICHI MIYAZAWA TOLD THE DIET OR PARLIAMENT THAT THE ECONOMY IS IN A VERY HARSH CONDITION AND REQUIRES CONCERTED EFFORTS BY THE GOVERNMENT AND THE PRIVATE SECTOR FOR REVITALIZATION BUT HE DIDN'T OUTLINE ANY PLANS TO BOLSTER THE ECONOMY EARLIER HAJIME FUNADA THE HEAD OF JAPAN'S ECONOMIC PLANNING AGENCY SAID THE TOKYO MARKET ISN'T FACING A CRISIS AND THAT HE DOESN'T EXPECT SHARE PRICES TO FALL SUBSTANTIALLY ANALYSTS SAID THEY EXPECT THE FINANCE MINISTRY TO TRY TO KEEP THE NIKKEI ABOVE 16000 AS THE PREVIOUS SUPPORT LEVEL OF 16500 HAS CRUMBLED WHILE JAPANESE PUBLIC FUNDS BOUGHT SHARES FRIDAY THEIR ACTIVITY WHICH HAS ACTED AS A SAFETY NET RECENTLY WASN'T AS STRONG OR DEFENSIVE AS INVESTORS HAD EXPECTED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 79 POINTS TO 27812 FOR A 436POINT GAIN IN THE THREE DAYS THROUGH FRIDAY THE FT 30STOCK INDEX ADDED 85 POINTS TO 21522 VOLUME WAS 6972 MILLION SHARES COMPARED WITH A REVISED TOTAL OF 7019 MILLION SHARES IN THE PREVIOUS SESSION LONDON SHARES' ADVANCE ALSO WAS ATTRIBUTED PARTLY TO A SHORT SQUEEZE IN THE FUTURES MARKET THAT TOOK THE FTSE 100 AS HIGH AS 27946 A SHORT SQUEEZE OCCURS WHEN THE PRICE OF A SECURITY RISES SHARPLY CAUSING MANY SHORTSELLERS TO BUY THE SECURITY TO COVER THEIR POSITIONS AND LIMIT LOSSES THE BUYING LEADS TO EVEN HIGHER PRICES FURTHER AGGRAVATING THE LOSSES OF SHORTSELLERS WHO HAVEN'T COVERED THEIR POSITIONS INVESTORS CLUNG TO THE EXPECTATION THAT BRITAIN WILL CUT BASE LENDING RATES SOON MAINLY BECAUSE BEARISH INDICATORS LAST WEEK ON BRITISH RETAIL SALES UNEMPLOYMENT AND INDUSTRIAL PRODUCTION SUGGESTED A FURTHER STIMULUS MAY BE NEEDED TO GET BRITAIN'S ECONOMY OUT OF RECESSION EVEN SO THE SCOPE OF THE MARKET'S ENTHUSIASM CAUGHT SOME SHORTSELLERS BY SURPRISE NEAR THE END OF THE SESSION SENTIMENT COOLED AS WALL STREET FAILED TO FOLLOW UP ON ITS PREVIOUS GAINS AND LONDON PROFITTAKERS WHITTLED AWAY THE 100STOCK INDEX'S GAINS BANK STOCKS WERE AMONG LONDON'S STRONGER PERFORMERS AS INVESTORS PARTICULARLY INSTITUTIONS ANTICIPATED LOWER LENDING RATES RETAILERS ALSO WERE FAVORED IN FRANKFURT THE DAX 30STOCK INDEX CLIMBED 1397 POINTS TO 158764 A HIGH FOR THIS YEAR THE MARKET OPENED SHARPLY HIGHER LED BY AIRLINE AND AUTO STOCKS BUT HELD TO A 544POINT RANGE DURING THE THREEHOUR TRADING SESSION THOUGH VOLUME WAS HEALTHY FROM FOREIGN AND DOMESTIC PLAYERS THE GAIN FOR THE BENCHMARK AVERAGE LEFT IT WITH A 4309POINT JUMP FOR THE WEEK PARIS STOCKS ROSE MODERATELY AS THE BOURSE'S RECENT CAUTION CONTINUED AMSTERDAM PRICES FINISHED MIXED AFTER AN UNEXPLAINED AFTERNOON SELLOFF THAT RAN COUNTER TO THE TREND ON MOST OTHER BIG EUROPEAN MARKETS ZURICH EQUITIES CLIMBED IN A VOLATILE SESSION BUOYED BY FUTURESRELATED TRADING AND CONTINUED DEMAND FOR BANKING STOCKS THE BRUSSELS RALLY CONTINUED TAKING THE MAIN INDEX UP 24 FOR THE WEEK MILAN SHARE PRICES FELL IN ACTIVE TRADING AS A WAVE OF PROFITTAKING GREW IN THE MARKET'S RECENT CONSOLIDATION AFTER SEVERAL WEEKS OF STRENGTH MADRID STOCKS FELL AMID WIDESPREAD PROFITTAKING AFTER A CUT IN SPAIN'S BENCHMARK INTEREST RATE TO 1325 FROM 1375 DIDN'T BOOST THE MARKET A BIGGER REDUCTION HAD BEEN EXPECTED STOCKHOLM PRICES FELL AFTER FAILING TO RECOVER FROM A WEAK OPENING SYDNEY SHARES' RISE WAS SUPPORTED BY A FIRMING AUSTRALIAN DOLLAR AND A RALLY IN THE BANKING SECTOR SINGAPORE STOCKS FIRMED IN HALFDAY TRADING DESPITE SOME PROFITTAKING AHEAD OF THE CHINESE NEW YEAR HOLIDAY WHICH SHUT MANY ASIAN EXCHANGES INCLUDING THOSE IN HONG KONG TAIPEI AND SEOUL MANILA STOCKS ADVANCED ON HEAVY VOLUME AS RECENT ENTHUSIASM CONTINUED 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 9301250065 930125 BUSINESS BRIEFS WESCO AUTO PARTS CORP SIGNED A LETTER OF INTENT TO PURCHASE THE ASSETS OF REDDI BRAKE SUPPLY INC TERMS WEREN'T DISCLOSED SOCIETY CORP COMPLETED ITS ACQUISITION OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF FORT MYERS FLA FOR 141 MILLION QUAKER OATS CO WILL BEGIN US DISTRIBUTION OF A TEAFLAVORED GATORADE DRINK THIS SPRING SPARTAN MOTORS INC SIGNED A 224 MILLION CONTRACT TO SUPPLY 400 BUS CHASSIS TO MINIBUSES ALFA SA DE CV 9301250063 930125 HALLIBURTON CO DEBT TOTALING 620 MILLION IS DOWNGRADED BY S&P NEW YORK STANDARD & POOR'S CORP CITING A WEEK OUTLOOK IN THE OILSERVICE INDUSTRY LOWERED ITS RATINGS ON 620 MILLION OF HALLIBURTON CO DEBT RATINGS ON THE DALLASBASED ENGINEERING AND ENERGY SERVICES COMPANY'S SENIOR DEBT WERE LOWERED TO SINGLEA FROM DOUBLEAMINUS SUBORDINATED DEBT TO SINGLEAMINUS FROM SINGLEAPLUS AND COMMERCIAL PAPER TO A1 FROM A1PLUS THE RATINGS AGENCY SAID THE DEPRESSED OILFIELD SERVICE INDUSTRY HAS MINIMAL PROSPECTS FOR IMPROVEMENT AND COMPETITIVE FORCES WILL CONTINUE TO PRESSURE OPERATING MARGINS INTEREST COVERAGE AND RETURN ON CAPITAL DESPITE RESTRUCTURING EFFORTS S&P NOTED THAT HALLIBURTON DOES HAVE STRONG MARKET POSITIONS IN THE OILSERVICE SECTOR IN ADDITION TO ITS EFFORTS AT INTERNATIONAL EXPANSION THE PENDING ACQUISITION OF SMITH INTERNATIONAL INC'S DIRECTIONAL DRILLING BUSINESS WILL ENHANCE HALLIBURTON'S POSITION IN THAT SECTOR OF THE MARKET ALSO HALLIBURTON'S SOLID POSITION IN THE ENGINEERING AND CONSTRUCTION BUSINESS SHOULD FURTHER BENEFIT FROM FUTURE PROJECTS FOR ENVIRONMENTAL REGULATIONS AND INFRASTRUCTURE NEEDS SAID S&P ALTHOUGH THE COMPANY BEGAN LOWERING ITS COST STRUCTURE WITH A RESTRUCTURING PROGRAM IN 1991 THE EFFORTS WERE LONG OVERDUE SAID ROBERT WEISS A CORPORATE FINANCE GROUP DIRECTOR FOR S&P 9301250062 930125 WHO'S NEWS CREDIT DEPOT CORP CREDIT DEPOT CORP GAINESVILLE GA CRAIG J BRUNET 45YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST PACIFIC NETWORKS INC WAS NAMED TO THE BOARD OF THIS FINANCIAL SERVICES CONCERN EXPANDING IT TO SEVEN MEMBERS 9301250061 930125 DELTA AIR RATINGS ARE CUT BY MOODY'S CITING COMPARATIVE WEAK PERFORMANCE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL MOODY'S INVESTORS SERVICE INC LOWERED ITS CREDIT RATINGS OF DELTA AIR LINES SAYING THE CARRIER'S PERFORMANCE HAS BEEN WEAKER THAN THOSE OF ITS KEY RIVALS AND DELIVERING ANOTHER BLOW TO THE COMPANY'S BLUECHIP IMAGE THE MOVE AFFECTS 46 BILLION OF LONGTERM DEBT AND IT COMES A MONTH AFTER DELTA TOOK DRASTIC COSTCUTTING STEPS IN PART TO STAVE OFF SUCH A DOWNGRADE WITH DELTA'S STOCK PRICE LANGUISHING AND LOSSES MOUNTING THE DOWNGRADE ALSO COMES AMID SPECULATION ON WALL STREET AND WITHIN THE INDUSTRY THAT BOARD MEMBERS WANT TO REPLACE RONALD W ALLEN THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEVERAL DIRECTORS HAVE SAID NO SUCH SEARCH IS UNDER WAY THE NEXT MEETING IS SCHEDULED FOR THURSDAY A DELTA SPOKESWOMAN FRIDAY SAID THIS IS A RUMOR THAT PICKS UP SPEED BUT THERE'S NOTHING THERE HE HAS TOTAL SUPPORT FROM THE BOARD REGARDING MOODY'S DOWNGRADE SHE SAID WE'RE DISAPPOINTED BUT WE'VE PUT THE COSTCUTTING PROGRAM IN MOTION AND WE'RE GOING TO WORK EXTREMELY HARD IN THE NEXT QUARTERS TO IMPROVE OUR RESULTS IN LATE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE DELTA'S SHARES FELL 625 CENTS TO 51625 LAST MONTH THE ATLANTABASED AIRLINE RECOMMENDED AN 83 DIVIDEND CUT REDUCED WAGES 5 FOR MOST WORKERS AND POSTPONED 400 MILLION IN AIRCRAFT ORDERS MOODY'S HOWEVER SAID SOME COSTCUTTING BENEFITS MAY NOT BE REALIZED FOR SEVERAL YEARS AND OTHERS ARE CONTINGENT ON SUCCESSFUL NEGOTIATIONS WITH OTHER PARTIES INCLUDING DELTA'S PILOT UNION AND VARIOUS AIRCRAFT MANUFACTURERS THE RETRENCHMENT ALSO HASN'T HELPED DELTA WITH STANDARD & POOR'S CORP WHICH AFTER THE COST CUTS WERE ANNOUNCED LOWERED ITS RATINGS ON 56 BILLION OF THE AIRLINE'S SECURITIES TWO WEEKS AGO S&P PUT DELTA'S DEBT UNDER REVIEW FOR ANOTHER POSSIBLE DOWNGRADE WHICH COULD PUT THE AIRLINE AT SPECULATIVEGRADE STATUS THE RATING AGENCY ALSO PUT DELTA'S TWO LARGEST COMPETITORS UAL CORP PARENT OF UNITED AIRLINES AND AMR CORP PARENT OF AMERICAN AIRLINES UNDER REVIEW AMONG OTHER ISSUES MOODY'S LOWERED DELTA'S DEBT ON SECURED EQUIPMENT TRUST CERTIFICATES TO BAA2 TO BAA1 AND ITS SENIOR UNSECURED DEBT AND INDUSTRIAL REVENUE BONDS TO BAA3 FROM BAA2 THE RATING AGENCY SAID IT DIDN'T EXPECT DELTA'S PERFORMANCE TO IMPROVE IN THE NEAR TERM BECAUSE OF THE EFFECT OF A WEAK GERMAN ECONOMY ON DELTA'S FRANKFURT HUB AND THE HEAVY FIXED COSTS ASSOCIATED WITH THAT HUB MOODY'S ALSO CITED WEAK DOMESTIC DEMAND AND OVERCAPACITY AND SAID IT WOULD REASSESS ITS OUTLOOK FOR DELTA IF THE INDUSTRY ENTERS A PERIOD OF SEVERE DISCOUNTING SEPARATELY DELTA EXPRESSED ITS OPPOSITION TO BRITISH AIRWAYS PLC'S 300 MILLION INVESTMENT IN USAIR GROUP INC DESCRIBING THE MOVE AS NOTHING MORE THAN THE OLD DEAL IN NEW DRESSING DELTA HAD LOBBIED HARD TO BLOCK BRITISH AIRWAYS' PREVIOUS AND MORE AMBITIOUS INVESTMENT PROPOSAL IN USAIR THAT TRANSATLANTIC ALLIANCE FACING ALMOST CERTAIN REJECTION BY THE DEPARTMENT OF TRANSPORTATION WAS WITHDRAWN LAST MONTH AMERICAN AND UNITED HAVE ALREADY OBJECTED TO THE NEW AGREEMENT WHICH GIVES THE BRITISH CARRIER A 199 VOTING STAKE IN USAIR AND DOESN'T REQUIRE APPROVAL FROM THE US GOVERNMENT DELTA SAID IN A STATEMENT THAT THE INVESTMENT RAISES QUESTIONS ABOUT HOW MUCH CONTROL BRITISH AIRWAYS WILL EXERT OVER USAIR AND THAT THE TRANSACTION WOULD DENY US CARRIERS COMPARABLE ACCESS TO BRITISH MARKETS A JAN 25 ARTICLE ABOUT THE LOWERING OF DELTA AIR LINES' CREDIT RATING REPORTED SPECULATION ON WALL STREET AND IN THE INDUSTRY THAT MEMBERS OF DELTA'S BOARD WANT TO REPLACE RONALD W ALLEN THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS SPECULATION HOWEVER WAS NO MORE THAN RUMOR THOSE MENTIONING IT TO THE JOURNAL PROVIDED NO FACTS OR AUTHORITY ON WHICH TO BASE IT MERE RUMORS CAN BECOME NEWSWORTHY WHEN THEY MOVE MARKETS OR HAVE OTHER SUCH IMPACT THIS WAS NOT SUCH AN INSTANCE SO THE SPECULATION SHOULDN'T HAVE BEEN INCLUDED IN THE ARTICLE 9301250060 930125 CORPORATE FOCUS KIRIN BREWERY'S PLUNGE INTO BIOTECHNOLOGY PAYS OFF TEN YEARS LATER JAPANESE CONCERN'S SALES OF TWO TOP DRUGS SURPASS RIVALS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN 1982 KIRIN BREWERY CO ONE OF THE BIGGEST BEER COMPANIES IN THE WORLD SEEMED AN UNLIKELY CONTENDER IN JAPAN'S COMPETITIVE PHARMACEUTICAL MARKET AFTER ALL ITS NAME EVOKED IMAGES OF SUDS NOT DRUGS THAT WAS BEFORE AN INFUSION OF KNOWHOW FROM AMGEN INC THEN A FLEDGLING US BIOTECHNOLOGY FIRM SINCE JOINING AMGEN IN A VENTURE TO DEVELOP AND MARKET A GENETICALLY ENGINEERED TREATMENT FOR ANEMIA KIRIN HAS GRABBED A MAJOR SLICE OF THE JAPANESE MARKET FOR THE DRUG ITS SECOND BIOTECH MEDICINE A DRUG THAT STIMULATES PRODUCTION OF DISEASEFIGHTING WHITE BLOOD CELLS DOMINATES THAT CATEGORY IN JAPAN ANALYSTS EXPECT 1992 SALES OF KIRIN'S TWO TOP DRUGS TO REACH 40 BILLION YEN 3172 MILLION ABOUT TWO BILLION YEN MORE THAN SALES OF SIMILAR PRODUCTS BY ITS CHIEF RIVAL IN THE DRUG BUSINESS CHUGAI PHARMACEUTICAL CO WHILE DRUGS ACCOUNT FOR LESS THAN 3 OF KIRIN'S EXPECTED TOTAL 1992 SALES OF 164 TRILLION YEN ANALYSTS EXPECT THE PHARMACEUTICALS DIVISION TO CONTINUE GROWING AND TO PLAY A NOTICEABLE ROLE IN THE COMPANY'S 1992 PRETAX PROFIT WHICH IT FORECASTS AT 98 BILLION YEN KIRIN'S STRATEGY WAS UNIQUE SAYS PHARMACEUTICAL ANALYST SHIGERO MISHIMA OF SG WARBURG JAPAN INC AMONG JAPANESE FOOD AND BEVERAGE COMPANIES THAT INVESTED IN BIOTECHNOLOGY HE SAYS WE HAVE SEEN SUCCESS ONLY IN KIRIN AND KIRIN HAS BIG PLANS TO BUILD ON THAT SUCCESS IN MANY WAYS KIRIN'S STORY IS REPRESENTATIVE OF THE WAY JAPAN'S BIOTECHNOLOGY INDUSTRY HAS USED US SCIENCE TO BUILD ITSELF INTO A SERIOUS DOMESTIC FORCE BUT IT ALSO ILLUSTRATES THE LIMITS THESE COMPANIES MAY FACE WHEN ATTEMPTING TO GO IT ALONE UNLIKE THE US JAPAN DOESN'T HAVE MANY BIOTECHNOLOGY STARTUPS THAT HIT PAY DIRT WITH ONE OR TWO SUCCESSFUL PRODUCTS WHAT IT HAS INSTEAD IS A COLLECTION OF LARGE COMPANIES IN INDUSTRIES SUCH AS PHARMACEUTICALS FOOD AND CHEMICALS THAT DECIDED TO DIVERSIFY INTO BIOTECHNOLOGY IN THE EARLY 1980S ONCE THE POTENTIAL OF THE NEW TECHNOLOGY BECAME APPARENT ONE SUCH COMPANY WAS KIRIN NOW THE WORLD'S FOURTHLARGEST BREWERY FAMOUS FOR THE 18 VARIETIES OF LAGER IT SELLS THROUGHOUT JAPAN AND THE FIVE IT SELLS OVERSEAS KIRIN SAW AN OPPORTUNITY SOON AFTER CALIFORNIA SCIENTISTS KICKED OFF THE BIOTECHNOLOGY REVOLUTION IN THE MID1970S WITH THEIR INVENTION OF RECOMBINANT DNA TECHNOLOGY WHICH ALLOWS RESEARCHERS TO CUT AND PASTE THE GENETIC MATERIAL OF PLANTS AND ANIMALS BY 1982 KIRIN HAD ASSEMBLED A TEAM OF ABOUT 30 BIOTECHNOLOGY RESEARCHERS AT THE TIME THE BIG JAPANESE PHARMACEUTICAL COMPANIES HAD NOT YET TRIED RESEARCH IN THE NEW AREA SAYS KOICHIRO ARAMAKI KIRIN'S VICE PRESIDENT FOR PHARMACEUTICALS WE THOUGHT IF WE COULD USE BIOTECHNOLOGY AS A COMPETITIVE EDGE WE COULD TAKE A LEADING POSITION AT LEAST IN JAPAN BUT AS IT TURNED OUT KIRIN'S LEAP INTO BIOTECHNOLOGY WAS BASED PARTLY ON A MISUNDERSTANDING NAMELY THE ASSUMPTION THAT ITS EXPERTISE IN HOPS AND BARLEY BREEDING AND FERMENTATION WOULD BE OF USE IN BIOTECHNOLOGY RESEARCH THE COMPANY'S DIFFICULTIES BECAME APPARENT SOON AFTER ITS RESEARCHERS TARGETED A PROMISING DRUG KNOWN AS ERYTHROPOIETIN OR EPO WHICH STIMULATES THE BODY'S PRODUCTION OF RED BLOOD CELLS DESPITE THEIR EFFORTS KIRIN'S SCIENTISTS COULDN'T MAKE A PURIFIED VERSION OF EPO NEEDED FOR RESEARCH THEN CAME NEWS IN LATE 1983 THAT SCIENTISTS AT AMGEN HAD SUCCEEDED IN MAKING PURIFIED EPO AND KIRIN'S CORPORATE EARS PERKED UP AMGEN DIDN'T HAVE THE FINANCIAL RESOURCES TO DEVELOP THE DRUG ITSELF SO KIRIN STEPPED IN WITH 12 MILLION IN INITIAL FINANCING AMGEN ADDED 4 MILLION IN CASH AND ITS EPO TECHNOLOGY AND A JOINT VENTURE CALLED KIRINAMGEN WAS BORN FROM THE BEGINNING IT WAS AN UNLIKELY PARTNERSHIP DURING THE SEARCH FOR FINANCING WE HAD TALKED TO JUST ABOUT EVERYONE THAT MOVED SAYS AMGEN VICE PRESIDENT LOWELL SEARS KIRIN HOWEVER HADN'T BEEN APPROACHED THEY WEREN'T A LOGICAL CHOICE THEY WEREN'T IN PHARMACEUTICALS THEY HAD NO BACKGROUND BUT THEY HAD DONE THEIR HOMEWORK ALONG THE WAY THE JOINT VENTURE TOOK ON AN ADDITIONAL DRUG KNOWN AS GRANULOCYTE COLONYSTIMULATING FACTOR OR GCSF WHICH ENHANCES THE BODY'S PRODUCTION OF WHITE BLOOD CELLS THE PARTNERS SHARED THE RISKS OF DEVELOPING AND SEEKING REGULATORY APPROVAL FOR BOTH DRUGS AND IN THE END DIVIDED THE MARKETING RIGHTS WITH AMGEN TAKING THE US AND EUROPE AND KIRIN TAKING JAPAN THE BENEFITS TO BOTH SIDES HAVE BEEN OBVIOUS KIRIN'S VERSION OF GCSF IS EXPECTED TO REAP 1992 SALES OF 21 BILLION YEN COMPARED WITH CHUGAI'S ESTIMATED 1992 GCSF SALES OF 13 BILLION YEN KIRIN DOESN'T GET THE FULL BENEFIT HOWEVER SANKYO CO JAPAN'S SECONDLARGEST DRUG COMPANY MARKETS BOTH OF KIRIN'S PHARMACEUTICALS FOR A ROUGHLY 50 CUT EARLIER THIS MONTH KIRIN ALSO SETTLED A PATENT RIGHTS DISPUTE WITH CHUGAI OVER EPO CHUGAI AGREED TO PAY ROYALTIES TO KIRIN ALTHOUGH NEITHER COMPANY WOULD DISCLOSE THE AMOUNT FLUSH WITH THIS SUCCESS KIRIN IS BUSY WORKING ON SEVERAL NEW DRUGS THE MOST PROMISING OF WHICH IS A GENETICALLY ENGINEERED ANTICANCER AGENT CALLED MX2 SAYS THE COMPANY'S MR ARAMAKI MX2 WHICH SHOWS POTENTIAL IN TREATING LEUKEMIA LYMPHOMA AND BRAIN CANCER COULD BE READY FOR REGULATORY APPROVAL BY 1996 HE SAYS THE COMPANY ALSO HAS HIGH HOPES FOR NEW DRUGS THAT WILL SUPPRESS ALLERGIC REACTIONS SUCH AS HAY FEVER HE SAYS THE COMPANY ALSO HOPES TO FREE ITSELF FROM ITS DEPENDENCE ON SANKYO BY MARKETING ITS PRODUCTS ITSELF BY THE YEAR 2000 WE WILL HAVE EVERY CAPABILITY FROM RESEARCH TO MARKETING SAYS MR ARAMAKI STILL SOME POTENTIAL STUMBLING BLOCKS REMAIN FOR ONE KIRINAMGEN HAS NO MORE PRODUCTS IN THE PIPELINE AND WHILE EXECUTIVES AT BOTH KIRIN AND AMGEN ARE CAREFUL TO SAY THEY MAY CONTINUE TO WORK TOGETHER SOME VOICES SUGGEST OTHERWISE WE'LL ENTER JAPAN WITH OUR NEXT WAVE OF PRODUCTS SAYS AMGEN'S MR SEARS WHO ADDS THAT THE TWO COMPANIES' INTERESTS ARE NOW PARALLEL RATHER THAN INTERTWINED WHAT'S MORE KIRIN MAY HAVE TROUBLE DOING ITS OWN MARKETING THEY CERTAINLY DON'T HAVE THE DISTRIBUTION CAPABILITY SAYS ANALYST PHILIP HALL OF BARING SECURITIES JAPAN LTD I THINK THEY WOULD REQUIRE AN ACQUISITION IN THE PHARMACEUTICAL INDUSTRY TO GET THEIR HANDS ON A SALES FORCE OTHER ANALYSTS ARE SKEPTICAL OF KIRIN'S ATTEMPTS TO BRING OUT NEW PRODUCTS ON ITS OWN CLAIMING THAT THE COMPANY LACKS THE RESEARCH MUSCLE TO DO THE JOB PEOPLE SAY THE BREWERY COMPANY HAS VERY GOOD POTENTIAL FOR BIOTECHNOLOGY BUT KIRIN DOESN'T HAVE SO MANY MEMBERS IN ITS RESEARCH DEPARTMENT SAYS ANALYST MASAAKI TANAKA OF JARDINE FLEMING SECURITIES LTD KIRIN HOWEVER IS UNDAUNTED NOTABLY IT HAS FUNNELED ABOUT 500 MILLION YEN A YEAR SINCE 1988 INTO RESEARCH ON ALLERGIES AT A NEW IMMUNOLOGY CENTER IN LA JOLLA CALIF KIRIN IS BETTING THE WORK WILL ONE DAY HAVE A BIG COMMERCIAL PAYOFF 9301250059 930125 HEARD ON THE STREET VINTAGE PETROLEUM ATTRACTS SOME FOLLOWERS WITH ITS OIL AND GAS EXPLOITATION' ACTIVITIES BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GROWTHSTOCK GROUPIES ENTHRALLED WITH VINTAGE PETROLEUM SEEM NOT TO BELIEVE THIS STOCK IS A SWINGING CYCLICAL THAT COULD SHATTER THEIR ROMANCE DILLON READ UNDERWROTE A SALE OF 34 MILLION SHARES FOR THE COMPANY WEDNESDAY EVENING AT 13 1/2 CLOSE TO THE HIGHEST PRICE INVESTORS HAVE PAID FOR VINTAGE SHARES IN THE PAST YEAR FRIDAY THE STOCK JUMPED 1 1/4 TO 14 3/4 VINTAGE IS A MEMBER OF A HOT STOCK GROUP THAT THE STREET CALLS OIL AND GAS EXPLOITATION COMPANIES THEY'RE EXPLORATION COMPANIES BUYING UP MATURE US WELLS FROM MAJOR OIL CONCERNS AT BARGAIN PRICES THEY FIND EFFICIENT WAYS TO GET REMAINING OIL AND GAS OUT OF WELLS THEN FLIP THE PRODUCT ON THE MARKET FOR A BIG PROFIT PUT ANOTHER WAY THE EXPLOITERS ARE BUYING UP MILLIONS IN REVENUEGROWTH AND INCOMEGROWTH POTENTIAL AT A DISCOUNT THIS STRATEGY HAS IGNITED SUCH EXCITEMENT AMONG THE GROWTHCOMPANY ENTHUSIASTS THAT THERE'S A CURIOUS DIVERGENCE IN THE MARKET RIGHT NOW SINCE FALL CRUDEOIL PRICES SLUMPED 4 A BARREL TO BELOW 19 NOW ANALYSTS ALSO EXPECT WEAKER NATURALGAS PRICES THIS YEAR MEANWHILE THE SHARES OF SUCH EXPLOITERS AS VINTAGE HAVE HELD THEIR GROUND OR CLIMBED EVEN AS PRODUCT PRICES SLIP WILLIAM C BARNES VINTAGE'S CHIEF FINANCIAL OFFICER SAYS CHEAPER ENERGY PRICES LOWER VINTAGE'S ACQUISITION COSTS LOWER OIL PRICES DON'T NECESSARILY HURT OUR BUSINESS HE SAYS ALTHOUGH HE ACKNOWLEDGES THAT EARNINGS AND CASH FLOW CAN DRY UP WHEN ENERGY PRICES WEAKEN ANALYSTS ESTIMATE THAT 10 BILLION IN US OIL AND GAS PROPERTIES ARE ON THE MARKET EXPLOITERS HAVE ALREADY MADE A KILLING IN SOME OF THESE DEALS FROM 1990 THROUGH THE THIRD QUARTER OF 1992 VINTAGE BOUGHT 235 MILLION BARRELS OF OIL OR THE EQUIVALENT IN UNITS OF GAS FOR 250 A BARREL IN LATE 1992 VINTAGE SPENT 765 MILLION TO ACQUIRE PROPERTIES FOR THE EQUIVALENT OF 320 A BARREL FROM ATLANTIC RICHFIELD CO VINTAGE DROVE A HARD DEAL THE AVERAGE COST OF OIL IN SUCH ACQUISITIONS IN THE FINAL QUARTER OF 1992 WAS 450 A BARREL OF OIL OR EQUIVALENT ACCORDING TO JOHN S HEROLD PETROLEUM RESEARCH & CONSULTING IN GREENWICH CONN IT COSTS VINTAGE AN AVERAGE 546 A BARREL TO PULL OIL AND GAS OUT OF THE GROUND THE AVERAGE COST OF ADDING RESERVES LATELY HAS BEEN 285 A BARREL SO AT CURRENT PRICES FOR CRUDE VINTAGE CAN REAP ABOUT A 1050ABARREL PROFIT ON ITS RESERVES VINTAGE IS MORE OF A GROWTH STOCK THAN A CYCLICAL STOCK ARGUES LYSLE BRINKER SENIOR ANALYST AT JOHN F HEROLD IF THEY CAN KEEP ACQUIRING PROPERTIES AND OPERATE THEM MORE EFFICIENTLY AND PROFITABLY THEY CAN ADD VALUE FOR SHAREHOLDERS AT TODAY'S PRICES HOWEVER SOME THINK THE STOCK IS A WELLHEAD OF RISK SKEPTICS ARGUE THAT SUCH STOCKS SHOULDN'T BE BOUGHT AT BIG PREMIUMS TO NET ASSET VALUE G BRYAN DUTT THE ANALYST AT HOWARD WEIL'S NEW ORLEANS OFFICE SAYS VINTAGE SHARES ARE PRICEY BASED ON HIS NETASSETVALUE ESTIMATE OF ABOUT 950 A SHARE SUCH CALCULATIONS INVOLVE A VARIETY OF VARIABLES THAT CAN CHANGE WITH THE BULLISHNESS OR BEARISHNESS OF THE ANALYST SEVERAL PUT VINTAGE'S NET ASSET VALUE BETWEEN 10 AND 11 A SHARE INCLUDING STOCKOFFERING PROCEEDS AND THE ARCO PROPERTIES VINTAGE SHARES MAY TRADE AT A PREMIUM BECAUSE INVESTORS EXPECT NET ASSET VALUE TO EXPAND THROUGH ACQUISITIONS NO DOUBT VINTAGE IS IN A GROWTH MODE TROUBLE IS OIL AND GAS PRICES ARE TREMENDOUSLY CYCLICAL IF ENERGY PRICES KEEP SLUMPING THE STOCK WON'T BE IMMUNE TO A DOWNTURN DOUG TERRESON MANAGER OF THE PUTNAM ENERGY RESOURCES TRUST ESTIMATES VINTAGE'S NET ASSET VALUE AT 15 A SHARE BUT HE CAUTIONS I THINK OVER THE NEXT COUPLE OF MONTHS NATURALGAS PRICES WILL COME DOWN AND TEST THE PATIENCE OF INVESTORS OILSTOCK WATCHER ALAN GAINES PRESIDENT OF GAINES BERLAND PRAISES VINTAGE'S ACQUISITION TRACK RECORD BUT HE ALSO CAUTIONS IF THE PRICE OF OIL DROPS TO THE SUB15 OR 16 A BARREL LEVEL THESE COMPANIES COULD GET SEVERELY PINCHED MR GAINES NOTES THAT VICE PRESIDENT AL GORE VOWED TO SCRUTINIZE ENVIRONMENTAL REGULATIONS ONCE WELLS ARE PUMPED DRY PLUGGING AND ABANDONMENT COSTS COULD BE SUBSTANTIAL WITH OUR NEW VICE PRESIDENT HE SAYS VINTAGE EXECUTIVES SAY THEY ARE TAKING ACCOUNT OF REGULATORY COSTS THE VINTAGE STORY IS CERTAINLY COMPELLING BUT IT'S RARE FOR OIL AND GAS COMPANIES TO RISE ABOVE A CYCLICAL DOWNTURN IN THEIR COMMODITY AT TODAY'S PRICES VINTAGE INVESTORS SHOULD BE PREPARED TO FIND THE EXIT FAST IF OIL PRICES ERODE FURTHER YEAR ENDED DEC 31 1991 NINE MONTHS ENDED SEPT 30 1992 NOTE FIGURES ARE PRO FORMA REFLECTING RECENT STOCK OFFERING AND ACQUISITION OF SOME ARCO PROPERTIES 9301250058 930125 HOW TO AVOID IRS RUNIN OVER HOUSEHOLD HELP FOR THOSE WHO WANT TO STICK TO THE LAW WHEN EMPLOYING HOUSEHOLD HELP HERE'S A CHECKLIST OF FORMS TO CONSULT IRS PUBLICATION 926 EMPLOYMENT TAXES FOR HOUSEHOLD EMPLOYERS AND IRS PUBLICATION 937 EMPLOYMENT TAXES AND INFORMATION RETURNS PUBLICATION 937 PROVIDES A 20FACTOR TEST TO DETERMINE WHETHER THE PERSON WORKING FOR YOU IS CONSIDERED AN EMPLOYEE A CONTRACT WORKER OR AN EMPLOYEE OF A DIFFERENT AGENCY IF THE WORKER HAS HIS OR HER OWN TOOLS DOES HIS OR HER JOB WITHOUT INSTRUCTION AND OFFERS THE SAME SERVICES TO A NUMBER OF OTHER PEOPLE THE WORKER IS CONSIDERED A CONTRACTOR AND THEREFORE RESPONSIBLE FOR HIS OR HER OWN SOCIAL SECURITY AND MEDICARE TAXES PLUMBERS AND GROUNDSKEEPERS OFTEN FALL INTO THIS CATEGORY IRS SPOKESMAN DON ROBERTS SAYS EVEN CHILDREN SHOVELING SNOW ARE CONSIDERED CONTRACT WORKERS AS LONG AS THEY PERFORM THE SERVICE FOR OTHERS AS WELL SIMILARLY IF THE WORKER BELONGS TO AN AGENCY OR SERVICE AND ISN'T HIRED FIRED OR PAID DIRECTLY BY YOU THE WORKER'S SOCIAL SECURITY AND MEDICARE TAXES MUST BE COVERED BY THE AGENCY PROVIDING THE WORKERS HOWEVER IF A PERSON WORKS DIRECTLY FOR YOU WAS HIRED AND CAN BE FIRED BY YOU AND PERFORMS SERVICES UNDER YOUR DIRECTION THE WORKER IS CONSIDERED AN EMPLOYEE THIS CATEGORY IS LIKELY TO INCLUDE HOUSEKEEPERS AND CARETAKERS NOT WITH OUTSIDE SERVICES OR EVEN BABYSITTERS STILL CONFUSED YOU CAN FILE FORM SS8 AND THE GOVERNMENT WILL DECIDE FOR YOU WHETHER THE WORKER IS AN EMPLOYEE OR UNDER CONTRACT HOWEVER WARNS MARY B HEVENER A TAX LAWYER WITH LEE TOOMEY & KENT IN WASHINGTON AT THAT POINT THEY HAVE YOUR NAME AND NUMBER SO YOU MUST FOLLOW THE IRS'S DECISION FORM SS4 IF YOUR WORKER IS CONSIDERED AN EMPLOYEE YOU MUST GET YOURSELF AN EMPLOYER IDENTIFICATION NUMBER USING THIS FORM IRS FORM 942 IF YOU PAY YOUR EMPLOYEES CASH WAGES OF 50 OR MORE IN A CALENDAR QUARTER YOU MUST FILE THIS QUARTERLY TAX RETURN FOR HOUSEHOLD EMPLOYEES FOR EMPLOYEES WHO MAKE 57600 A YEAR OR LESS THE EMPLOYER AND EMPLOYEE EACH PAYS 765 OF THE WAGES IN SOCIAL SECURITY AND MEDICARE TAXES CIRCULAR E IF AN EMPLOYEE ASKS FOR HIS OR HER SHARE OF MEDICARE AND SOCIAL SECURITY TAXES AN EMPLOYER CAN DETERMINE THE CORRECT WITHHOLDING AMOUNT FROM THIS TABLE BUT THE EMPLOYER IS NOT REQUIRED TO W2 AT THE END OF THE YEAR THE EMPLOYER GIVES A COPY OF THIS FORM TO THE EMPLOYEE AND TO THE SOCIAL SECURITY ADMINISTRATION CONGRESS LAST TERM TRIED TO MAKE IT EASIER TO PAY TAXES FOR HOUSEHOLD EMPLOYEES BY LETTING TAXPAYERS PUT THE EXPENSES ON THEIR 1040 FORMS INSTEAD OF THROUGH QUARTERLY FILINGS BUT THAT PLAN BACKED BY THE IRS WAS PART OF A BILL VETOED BY FORMER PRESIDENT BUSH IT HAS ALREADY BEEN INTRODUCED AGAIN THIS TERM ALL FORMS ARE AVAILABLE FROM THE IRS BY CALLING 1800TAX FORM AN IRS SPOKESMAN SAID THE SERVICE WON'T TRACE ANONYMOUS INFORMATIONAL CALLS SEE RELATED ARTICLE MANY WORRY ABOUT ILLEGAL HAND THAT ROCKS THE CRADLE WSJ JAN 25 1993 9301250057 930125 JOB GROWTH OUTLOOK IS LOOKING BETTER BUT OFFERS LITTLE CHEER TO UNEMPLOYED BY AL EHRBAR STAFF REPORTER OF THE WALL STREET JOURNAL THE OUTLOOK FOR JOB GROWTH IN THE US HAS IMPROVED SIGNIFICANTLY IN RECENT MONTHS BUT STILL NOT ENOUGH TO PROVIDE MUCH CHEER FOR THE 93 MILLION UNEMPLOYED IF THIS YEAR'S JOB GROWTH COMES IN AS MANY ECONOMISTS EXPECT IT WILL BE LITTLE MORE THAN ENOUGH TO ABSORB THE NEW ENTRANTS TO THE LABOR FORCE AND THE UNEMPLOYMENT RATE WILL DECLINE VERY SLOWLY WHAT'S MORE MOST OF THE NEW JOBS ARE LIKELY TO BE IN HEALTH CARE AND BUSINESS SERVICES JUST AS THEY WERE LAST YEAR THE OUTLOOK IS MEDIOCRE AT BEST FOR EMPLOYMENT IN MANUFACTURING CONSTRUCTION AND MINING OR WHAT POLITICIANS AND LABOR OFFICIALS REFER TO AS GOOD JOBS I WILL BE SURPRISED IF THE ECONOMY GENERATES AS MANY AS TWO MILLION JOBS THIS YEAR SAYS BRUCE STEINBERG HEAD OF MACROECONOMIC ANALYSIS AT MERRILL LYNCH & CO AND I DON'T SEE MUCH IMPROVEMENT IN 1994 AND 1995 AN INFORMAL SURVEY OF FORECASTERS AND ECONOMISTS AT FEDERAL RESERVE BANKS ACROSS THE COUNTRY SUGGESTS THAT JOB GROWTH THIS YEAR WILL BE MUCH THE SAME AS IT WAS IN 1992 WITH TWO IMPORTANT DIFFERENCES THE OVERALL OUTLOOK IS BETTER AND THE PROGNOSIS FOR MANUFACTURING JOBS HAS TURNED FROM NEGATIVE TO NEUTRAL OR SLIGHTLY POSITIVE INDUSTRIAL OUTPUT PROBABLY WILL NOT RISE MUCH FASTER THAN PRODUCTIVITY THIS YEAR WHICH MEANS THAT MANUFACTURERS AS A WHOLE WON'T ADD MANY WORKERS MOST MANUFACTURERS HAVE ENOUGH WORKERS TO MEET FORESEEABLE INCREASES IN ORDERS FOR AT LEAST SIX MONTHS SAYS RANDY EBERTS AN ECONOMIST AT THE CLEVELAND FEDERAL RESERVE BANK MR EBERTS SAYS THE SITUTATION IS MUCH THE SAME IN RETAILING RETAILERS SEE THINGS PICKING UP HE SAYS BUT THEY ARE UNDER SO MUCH COMPETITIVE PRESSURE FROM THE WALMARTS OF THE WORLD THAT THEY FEEL THEY CAN MEET HIGHER DEMAND THROUGH INNOVATIVE USES OF PEOPLE INSTEAD OF HIRING REGIONAL DIFFERENCES WILL CONTINUE TO DOMINATE HIRING TRENDS AROUND THE COUNTRY ESPECIALLY IN THE FAR WEST IDAHO AND UTAH ARE TWO OF THE STRONGEST STATES IN THE COUNTRY WHILE CALIFORNIA IS AMONG THE WEAKEST SAYS BRIAN CROMWELL AN ECONOMIST AT THE FEDERAL RESERVE BANK OF SAN FRANCISCO MR CROMWELL SAYS EMPLOYMENT IN MANUFACTURING CONSTRUCTION AND RETAIL AND WHOLESALE TRADE ALL ARE LIKELY TO DECLINE IN CALIFORNIA BECAUSE OF CUTBACKS IN DEFENSE AND AEROSPACE MEANWHILE JOBS WILL BE COMPARATIVELY PLENTIFUL IN TRADE AND RESIDENTIAL CONSTRUCTION IN IDAHO UTAH AND WASHINGTON SILICON VALLEY HAS TURNED THE CORNER MR CROMWELL ADDS PERSONAL COMPUTER AND SEMICONDUCTOR COMPANIES THAT HAD BEEN LAYING OFF ARE CALLING WORKERS BACK NATIONALLY HOWEVER INTERNATIONAL BUSINESS MACHINES CORP'S PENDING LAYOFFS CLOUD WHAT OTHERWISE WOULD BE AN OPTIMISTIC OUTLOOK FOR EMPLOYMENT IN THE COMPUTER INDUSTRY OTHER WESTERN COMPANIES THAT SHOULD BE HIRING THIS YEAR INCLUDE SMALL PRODUCERS OF EQUIPMENT USED IN ENVIRONMENTAL CONTROLS ELECTRONICS COMPANIES AND MAKERS OF COMPUTER PRINTERS BUT THESE GAINS ARE SWAMPED BY THE DEFENSE CUTS MR CROMWELL SAYS HIGHWAY CONSTRUCTION JOBS MAY SOON BEGIN TO OPEN UP ACROSS THE COUNTRY AS STATES START SPENDING THE FUNDS CONGRESS APPROPRIATED IN LAST YEAR'S SURFACE TRANSPORTATION BILL BUT THOSE NEW JOBS MAY BE OFFSET BY CONTINUING DECLINES IN COMMERCIAL CONSTRUCTION ON BALANCE IT SEEMS THAT THE NET GAINS IN EMPLOYMENT WILL COME IN THE SERVICE SECTOR MOST OF THE HIRING THERE WILL BE BY THE SAME KIND OF SMALL AND MIDSIZE COMPANIES THAT HAVE ALWAYS BEEN THE ENGINES OF JOB GROWTH HISTORICALLY MIDSIZE COMPANIES HAVE BEEN THE GREATEST SUPPLIERS OF JOBS SAYS DAVID WYSS AN ECONOMIST AT DRI/MCGRAW HILL THAT'S BECAUSE SERVICES TEND TO BE DOMINATED BY SMALL AND MIDSIZE COMPANIES YOU DON'T HAVE ECONOMIES OF SCALE IN MOST SERVICES BUSINESSES AND THEY TEND TO BE LOCAL IN NATURE MR WYSS POINTS TO TWO FACTORS THAT HAVE INHIBITED HIRING BY MIDSIZE COMPANIES ONE IS THE HALTING PACE OF THE RECOVERY AT LEAST UNTIL THE MIDDLE OF LAST YEAR THE OTHER IS THE CONTINUING RELUCTANCE OF BANKS TO LEND TO MOST MIDSIZE COMPANIES IF BANKS AREN'T LENDING TO MIDSIZE COMPANIES HOW ARE THEY GOING TO EXPAND HE ASKS 9301250056 930125 CANADIAN PULP OUTPUT ROSE 14 IN DECEMBER BUT SHIPMENTS FELL 9 MONTREAL CANADIAN PRODUCTION OF MARKET PULP ROSE 14 IN DECEMBER FROM A YEAR EARLIER BUT SHIPMENTS FELL 9 REFLECTING A SUPPLY GLUT THAT DROVE PRICES SHARPLY LOWER LATE LAST YEAR THE CANADIAN PULP AND PAPER ASSOCIATION AN INDUSTRY GROUP SAID CANADIAN MILLS PRODUCED 595000 METRIC TONS OF MARKET PULP IN DECEMBER COMPARED WITH 520000 METRIC TONS A YEAR EARLIER A METRIC TON IS 22046 POUNDS THE DECEMBER 88 OPERATING RATE WAS UP FROM 85 IN NOVEMBER AND 78 A YEAR EARLIER TOTAL MARKET SHIPMENTS IN DECEMBER FELL 9 TO 615000 METRIC TONS FROM 674000 METRIC TONS A YEAR EARLIER SHIPMENTS TO THE US FELL 14 TO 167000 METRIC TONS FROM 194000 METRIC TONS A YEAR EARLIER SHIPMENTS TO WESTERN EUROPE FELL 12 TO 190000 METRIC TONS FROM 217000 METRIC TONS SHIPMENTS TO JAPAN ROSE 29 TO 71000 METRIC TONS FROM 55000 METRIC TONS A YEAR EARLIER WHILE SHIPMENTS WITHIN CANADA ROSE 59 TO 62000 METRIC TONS FROM 39000 METRIC TONS FOR THE YEAR PRODUCTION ROSE 5 TO 6963000 METRIC TONS FROM 6648000 METRIC TONS IN 1991 TOTAL MARKET SHIPMENTS FOR THE YEAR WERE PRACTICALLY FLAT AT 6747000 METRIC TONS CANADIAN MILLS OPERATED AT 87 OF CAPACITY FOR THE YEAR COMPARED WITH 85 IN 1991 CANADIAN PRODUCER INVENTORIES AT THE END OF DECEMBER WERE 637000 METRIC TONS A 35DAY SUPPLY COMPARED WITH 420000 METRIC TONS A 20DAY SUPPLY A YEAR EARLIER MARKET PULP IS WOOD PULP SOLD ON THE OPEN MARKET TO PRODUCERS OF PAPER AND OTHER PRODUCTS THE STATISTICS EXCLUDE PULP CONSUMED AT THE PRODUCING MILL OR SHIPPED TO ANOTHER MILL THAT IS AFFILIATED WITH THE PRODUCING MILL 9301250055 930125 WHO'S NEWS CU BANCORP CHAIRMAN GAGERMAN STEPS DOWN ENCINO CALIF CU BANCORP SAID MELVIN GAGERMAN RESIGNED AS CHAIRMAN AFTER LESS THAN A YEAR IN THE POSITION IN THE LATEST OF A SERIES OF TOP EXECUTIVE DEPARTURES THE BANK HOLDING COMPANY SAID MR GAGERMAN 50 YEARS OLD WAS LEAVING THE POST TO PURSUE A NEW CAREER AS AN INVESTMENT CONSULTANT AND NOTED THAT THE TIME DEMANDS OF HIS NEW BUSINESS WOULD NECESSITATE HIS DEPARTURE FROM CU BANCORP MR GAGERMAN REMAINS A MEMBER OF THE COMPANY'S BOARD MR GAGERMAN SAID HE RESIGNED BECAUSE THE OPPORTUNITIES WERE SO GOOD FOR ME IN CONSULTING THAT I COULDN'T KEEP UP ALL OF THE OTHER THINGS MR GAGERMAN WILL BE SUCCEEDED BY JON P GOODMAN A DIRECTOR PENDING REGULATORY REVIEW DR GOODMAN 51 HAS BEEN A DIRECTOR OF CU BANCORP SINCE 1990 SHE IS A PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA SCHOOL OF BUSINESS ADMINISTRATION LAST YEAR TWO TOP CU BANCORP OFFICIALS RESIGNED THEIR POSTS IN FEBRUARY STEVEN C GOOD RESIGNED AS CHAIRMAN CITING THE DEMANDS OF HIS PERSONAL BUSINESS IN JUNE JOHN J KEATING RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER NOTING THAT THE COMPANY'S STOCK HADN'T BEEN DOING THAT WELL IN THE THIRD QUARTER CU BANCORP HAD A NET LOSS OF 296600 OR SEVEN CENTS A SHARE IN OVERTHECOUNTER TRADING FRIDAY CU BANCORP SHARES ROSE 50 CENTS TO 450 9301250053 930125 BUSINESS BRIEF WILLAMETTE INDUSTRIES INC FOURTHQUARTER PROFIT FELL DESPITE INCREASE IN REVENUE PLAGUED BY CONTINUING WEAKNESS IN THE PULP AND PAPER MARKETS WILLAMETTE INDUSTRIES INC PORTLAND ORE SAID NET INCOME IN THE FOURTH QUARTER FELL 15 TO 132 MILLION OR 24 CENTS A SHARE FROM 152 MILLION OR 30 CENTS A SHARE A YEAR EARLIER REVENUE ROSE ABOUT 10 TO 5967 MILLION FROM 5435 MILLION NET FOR THE YEAR BUOYED BY HIGH LUMBER AND PLYWOOD PRICES ROSE 78 TO 816 MILLION OR 152 A SHARE FROM 458 MILLION OR 90 CENTS A SHARE REVENUE CLIMBED 18 TO 24 BILLION FROM 2 BILLION 9301250052 930125 M/A BURGERS ALLEGES PRESIDENT USED FUNDS FOR PERSONAL BENEFIT LOS ANGELES M/A BURGERS INC SUED ITS PRESIDENT MICHAEL E KASSAN AND MICHAEL E MARCOVSKY THE CHAIRMAN AND PRESIDENT OF NOSTALGIA NETWORK INC ALLEGING THAT THEY STOLE AND DIVERTED THE COMPANIES' FUNDS FOR THEIR PERSONAL BENEFIT IN ITS LAWSUIT ALLEGING VIOLATIONS OF THE CIVIL RACKETEERING INFLUENCED AND CORRUPT ORGANIZATIONS LAW M/A BURGERS CLAIMED THAT MESSRS KASSAN AND MARCOVSKY INDUCED VARIOUS PEOPLE TO INVEST IN THE TWO COMPANIES AND OTHER ENTITIES IN WHICH THEY HELD TOP POSITIONS THEN USED THE FUNDS TO MAINTAIN THEIR EXTRAVAGANT LIFESTYLES M/A BURGERS AN OPERATOR OF DRIVETHROUGH RESTAURANTS CLAIMED THAT MR MARCOVSKY AUTHORIZED NOSTALGIA A LOS ANGELES OPERATOR OF A 24HOUR BASICCABLE TELEVISION SERVICE TO MAKE A 650000 PAYMENT TO MR KASSAN A DIRECTOR OF THE COMPANY FOR CONSULTING AND OTHER SERVICES THAT HADN'T BEEN PERFORMED NOSTALGIA'S BOARD NEVER APPROVED THE PAYMENT AND MR MARCOVSKY WAS PAID A KICKBACK M/A BURGERS ALLEGED LAWYERS FOR MESSRS MARCOVSKY AND KASSAN COULDN'T BE REACHED TO COMMENT THE LAWSUIT FILED IN STATE COURT HERE ALSO CLAIMED THAT MR MARCOVSKY ATTEMPTED TO COVER UP THE ALLEGEDLY IMPROPER PAYMENT BY MISLEADING NOSTALGIA'S AUDITORS AND PAYING A BONUS TO A FINANCIAL OFFICER OF THE COMPANY TO INDUCE THE OFFICER NOT TO DISCLOSE THE MISAPPROPRIATIONS MR MARCOVSKY IN TURN HELPED MR KASSAN DEFRAUD M/A BURGERS AND MISAPPROPRIATE MORE THAN 2 MILLION FROM THAT COMPANY THE LAWSUIT ALLEGED 9301250051 930125 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9301250050 930125 POLITICS & POLICY CLINTON POWELL HAVE DISAGREEMENTS BUT THEY NEED EACH OTHER'S SUPPORT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS PRESIDENT CLINTON ASSEMBLES HIS CIRCLE OF ADVISERS AND AIDES IT MAY TURN OUT THAT THE MOST IMPORTANT PLAYER IN THE EARLY DAYS WILL BE A HOLDOVER FROM THE BUSH AND REAGAN ADMINISTRATIONS GEN COLIN POWELL CHAIRMAN OF THE JOINT CHIEFS OF STAFF MAY NOT BE A FRIENDOFBILL BUT HE'S THE SOLE LINK BETWEEN THE FOREIGN POLICIES OF THE OLD AND NEW ADMINISTRATIONS AT A TIME US FORCES ARE ENGAGED IN IRAQ AND SOMALIA AND MAY GET INVOLVED IN BOSNIA IT'S THE FIRST TIME IN 24 YEARS A NEW PRESIDENT HAS TAKEN OFFICE WITH US FORCES DEPLOYED IN A COMBAT STANCE AND BECAUSE IT'S A NEW PARTY TAKING POWER INSTALLING NEW APPOINTEES AT STATE DEFENSE THE CENTRAL INTELLIGENCE AGENCY AND THE NATIONAL SECURITY COUNCIL GEN POWELL'S ROLE BECOMES CRITICAL TO NAVIGATE THE CURRENT MINEFIELD OF GLOBAL CRISES PRESIDENT CLINTON AND GEN POWELL NEED EACH OTHER'S SUPPORT BADLY STILL THE TWO MEN DON'T BEGIN THEIR RELATIONSHIP FROM A POSITION OF SOLIDARITY ON MILITARY POLICIES GEN POWELL HAS MADE CLEAR HIS OPPOSITION TO PRACTICALLY EVERY MAJOR POSITION THE PRESIDENT HAS TAKEN ON DEFENSE ISSUES HE IS WARY OF CALLS TO ACT MORE AGGRESSIVELY TO HELP THE BOSNIANS AND HE WORRIES THAT THE PRESIDENT WILL CUT TOO MANY TROOPS TOO FAST MORE URGENTLY GEN POWELL AND THE REST OF THE JOINT CHIEFS SHARPLY DISAGREE WITH THEIR NEW COMMANDER IN CHIEF ON HIS PLAN TO END THE BAN ON OPENLY GAY MILITARY PERSONNEL THAT WILL BE THE FIRST TOPIC ON THE AGENDA AS PRESIDENT CLINTON SITS DOWN FOR THE FIRST TIME WITH THE JOINT CHIEFS AT A MEETING TENTATIVELY SCHEDULED FOR TODAY THE CHIEFS ARE EXPECTED TO SAY TO THE PRESIDENT AS THEY SAID TO SECRETARY OF DEFENSE LES ASPIN IN A STORMY TWOHOUR CONFRONTATION THURSDAY THAT THUS FAR THE PRESIDENT HASN'T KEPT HIS PROMISE TO CONSULT WITH THE MILITARY'S LEADERS ON THE GAY QUESTION IT PROMISES TO BE A CRUCIAL ENCOUNTER GEN POWELL IS SAID BY A FRIEND TO BE WORRIED THAT MR CLINTON MAY BE EDGING TOWARD A REPLAY OF JIMMY CARTER'S FIRST MEETING WITH THE CHIEFS REMEMBERED AS DISASTROUS YET AT THE SAME TIME GEN POWELL PROBABLY WON'T CLASH OPENLY WITH HIS COMMANDER IN CHIEF IF A DECISION GOES AGAINST HIM HE'LL CARRY IT OUT IN A VERY PROFESSIONAL WAY WITH ABSOLUTELY NO RANCOR SAYS FRANK CARLUCCI A FORMER DEFENSE SECRETARY BUT AS FOR EDUCATING A PRESIDENT WHO IS A NOVICE IN NATIONAL SECURITY MATTERS HE SEES THAT NOT ONLY AS HIS ROLE BUT AS HIS RESPONSIBILITY SAYS COL FW SMULLEN A POWELL AIDE MR CLINTON SEEMS TO RECOGNIZE HIS NEED FOR SOLID MILITARY ADVICE AS EARLY AS LAST AUGUST HE WAS DISCUSSING WITH RETIRED OFFICERS HOW TO AVOID A BAYOFPIGSTYPE FIASCO EARLY IN HIS PRESIDENCY RECENTLY GEN POWELL HAS MET WITH THE NEW PRESIDENT TWICE THE FIRST TIME IN DECEMBER ON THE FORMER YUGOSLAVIA AND OTHER ISSUES AND THE SECOND TIME JAN 17 ON IRAQ MR ASPIN THE NEW DEFENSE SECRETARY ALSO ATTENDED THAT MEETING THE GENERAL'S TENURE AT THE TOP STRETCHES BACK TO 1987 WHEN HE WAS NAMED PRESIDENT REAGAN'S NATIONAL SECURITY ADVISER SINCE THEN HE HAS BECOME A HERO OF THE GULF WAR AND ONE OF THE MOST POPULAR GENERALS IN AMERICAN HISTORY AND AS THE FIRST BLACK PERSON TO LEAD THE US MILITARY HE IS A POTENT SYMBOL OF RACIAL PROGRESS IN THE COUNTRY HE'LL BE A FORMIDABLE FIGURE AS THE NEW ADMINISTRATION DEALS WITH IRAQ AND BOSNIA IN THE COMING WEEKS PREDICTS ZALMAY KHALILZAD DIRECTOR OF STRATEGIC STUDIES AT RAND CORP HE'S GOING TO BE A CENTRAL PLAYER GEN POWELL'S TERM AS CHAIRMAN EXPIRES AT THE END OF SEPTEMBER AND HE SAYS HE PLANS TO RETIRE FROM THE MILITARY AT THAT TIME WHEN IT COMES TO ADVISING PRESIDENT CLINTON ON THE CRISES IN IRAQ AND BOSNIA GEN POWELL MAY PUSH IN OPPOSITE DIRECTIONS PEOPLE FAMILIAR WITH HIS VIEWS SAY THAT WITH IRAQ HIS INCLINATION WILL BE TOWARD STRONG ACTION BUT WHEN IT COMES TO THE FORMER YUGOSLAVIA HE IS EXPECTED TO WEIGH IN AGAINST ARMED INTERVENTION IF SADDAM HUSSEIN RESUMES PROBING THE NOFLY ZONES IMPOSED IN THE NORTH AND SOUTH OF IRAQ THE CLINTON ADMINISTRATION MAY RESPOND MORE FORCEFULLY THAN THE BUSH ADMINISTRATION DID WITH ITS THREE LIMITED FORAYS EARLIER THIS MONTH THE NEW ADMINISTRATION'S DESIRE TO ACT FORCEFULLY IN ITS FIRST FOREIGN POLICY MOVES WILL BE REINFORCED BY GEN POWELL'S OFTSTATED PREFERENCE FOR DECISIVE MILITARY ACTION IN ADDITION TO BROADER RAIDS ON MILITARY AIRFIELDS AND HEADQUARTERS THE CLINTON WHITE HOUSE ALSO IS LIKELY TO BE PRESENTED A PLAN TO EXPAND THE SCOPE OF THE NOFLY ZONE IN SOUTHERN IRAQ BY ORDERING IRAQI GROUND FORCES OUT OF THE REGION THIS WOULD FURTHER THE UN GOAL OF PROTECTING THE SHIITES OF SOUTHERN IRAQ WHILE CUTTING INTO THE IRAQI RULER'S PRESTIGE IN A WAY THE RECENT RAIDS DIDN'T ON BOSNIA GEN POWELL IS LIKELY TO BE A STRONG VOICE AGAINST MILITARY ACTION MR CLINTON RECENTLY REITERATED HIS VIEW THAT THERE MAY BE SOME THINGS WE CAN DO MILITARILY BUT GEN POWELL HAS HIS DOUBTS I THINK THE RIGHT ANSWER IS A POLITICAL SOLUTION HE SAID IN NOVEMBER I AM NOT ONE OF THOSE WHO BELIEVES THAT A FEW WELLCHOSEN BOMBS WILL TAKE CARE OF A THOUSAND YEARS OF HISTORY THEY WON'T ALTHOUGH THE US'S TOP MILITARY OFFICER AND ITS TOP CIVILIAN HAVE THEIR POLICY DIFFERENCES THEY ALSO HAVE THE BASIS FOR A CLOSE RELATIONSHIP BOTH ARE PERSONABLE MEN WHO HAVE RISEN TO POWER WITHOUT MAKING MANY ENEMIES GEN POWELL WHO NEVER FORGETS OLD BOSSES AND MENTORS MAINTAINS A NETWORK OF FRIENDS RIVALING MR CLINTON'S BOTH ARE DEMONSTRATIVE MEN MR CLINTON IS FOND OF HUGGING PEOPLE WHILE GEN POWELL SOMETIMES LECTURES OFFICERS ON PROVIDING UNCONDITIONAL LOVE TO THEIR TROOPS THEY LIKE TO GET TO THE HEART OF THE ISSUE SO THEY COULD GET ALONG FAMOUSLY SAYS MR CARLUCCI I THINK THEY'LL GET ALONG FINE PREDICTS A LESS ADMIRING RETIRED REAR ADM EUGENE CARROLL THEY'RE CONSUMMATE POLITICIANS BOTH PEOPLE WHO SHOULD KNOW SAY THE VIETNAM WAR IN WHICH THE GENERAL WAS WOUNDED WON'T COME BETWEEN THEM I THINK THE PEOPLE WHO PROTESTED THE WAR MAY HAVE GOTTEN IT RIGHT SAYS HARLAN ULLMAN A FORMER TEACHER OF THE GENERAL'S AT THE NATIONAL WAR COLLEGE AND I THINK POWELL MAY BE SYMPATHETIC TO THAT VIEW GEN POWELL HAS COMMENTED ONLY BRIEFLY ON HIS MEETINGS WITH THE NEW PRESIDENT AND DECLINED TO BE INTERVIEWED FOR THIS ARTICLE BUT HE KNOWS HE NEEDS THE EAR OF THE NEW PRESIDENT THE TRUTH IS THAT POWELL'S POWER IS TOTALLY DEPENDENT ON CLINTON SAYS RETIRED COL HARRY SUMMERS AN INFLUENTIAL MILITARY STRATEGIST WHO HAS KNOWN THE GENERAL SINCE THEY WERE NEIGHBORS AT THE ARMY COMMAND AND GENERAL STAFF COLLEGE AT FORT LEAVENWORTH KAN IF CLINTON DOESN'T LISTEN TO HIM AS LBJ DIDN'T LISTEN TO HIS ADVISERS HE'LL HAVE NO POWER THE DANGER FOR GEN POWELL WILL BE OVERPLAYING HIS HAND IF BILL CLINTON PULLS BACK FROM GEN POWELL HE COULD TURN TO THE GENERAL'S PREDECESSOR RETIRED ADM WILLIAM CROWE WHO BOLSTERED MR CLINTON DURING THE CAMPAIGN PROTECTING A WEAK FLANK WITH A TIMELY ENDORSEMENT MR SUMMERS THE STRATEGIST WHO IS AN OLD FRIEND OF GEN POWELL WORRIES ABOUT THAT POSSIBILITY IF CROWE STILL HAS CLINTON'S EAR THAT COULD BE VERY DISRUPTIVE SAYS COL SUMMERS THE ANALOGY IS TO MAXWELL TAYLOR WHO PLAYED THAT ROLE EARLY IN THE KENNEDY ADMINISTRATION AND ROYALLY FOULED THINGS UP 9301250049 930125 BUSINESS BRIEF PNC FINANCIAL CORP CENTRAL PITTSBURGH BUILDING IS PURCHASED FOR 63250000 THE BANK HOLDING COMPANY SAID THE BUILDING WAS ACQUIRED FROM THE PENNSYLVANIA PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM PNC FINANCIAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THOMAS H O'BRIEN SAID THE PURCHASE WAS THE MOST COSTEFFECTIVE WAY TO DEAL WITH THE COMPANY'S FUTURE OFFICESPACE NEEDS THE COMPANY SAID OXFORD DEVELOPMENT CORP REPRESENTED IT IN NEGOTIATIONS FOR THE PURCHASE GRUBB & ELLIS WILL MANAGE THE BUILDING PNC FINANCIAL SAID 9301250048 930125 TECHNOLOGY INFORMATION AGE LANGUAGE SOFTWARE TACKLES MANY TONGUES BY WILLIAM M BULKELEY PARLEZVOUS FRANCAIS SPRECHEN SIE DEUTSCH HABLA USTED ESPANOL NO MAYBE A COMPUTER CAN HELP YOU YOU PROVINCIAL MONOGLOT WHEN MICROSOFT CORP TRANSFERS SOFTWARE ENGINEERS FOR A STINT IN ITS TOKYO OFFICE IT USUALLY DOESN'T SEND THEM TO LANGUAGE SCHOOL IT GIVES THEM A COMPUTER DISK CALLED POWER JAPANESE MADE BY BAYWARE INC THEY PLUG IT IN THREE WEEKS BEFORE THEY GO OVER AND THEY CAN GET AROUND ON THE SUBWAY OR TAKE TAXIS WHEN THEY GET THERE SAYS BRADLEY BAKER WHO HANDLES HUMAN RESOURCES RESPONSIBILITIES FOR MICROSOFT'S PACIFIC RIM OFFICES AND BRUSHES UP HIS OWN SKILLS BY USING THE DISK EVERY TIME HE FLIES TO JAPAN A SMALL BUT GROWING NUMBER OF PEOPLE ARE LEARNING OR RELEARNING TO READ AND SPEAK FOREIGN LANGUAGES FROM COMPUTERS AND LANGUAGE EDUCATORS ARE TAKING ADVANTAGE OF POWERFUL NEW PCS THAT INCLUDE COLOR SOUND AND MOTION TO DESIGN TRAINING PROGRAMS THAT GO FAR BEYOND EARLIER GENERATIONS OF TECHNOLOGY SUCH AS CASSETTE TAPES OR OLDER COMPUTER PROGRAMS THAT JUST REPLACED FLASHCARDS IN DRILLANDPRACTICE VOCABULARY BUILDING COMPUTERS BECOME MOST USEFUL IN LANGUAGE TRAINING WHEN THEY CAN DISPLAY PICTURES SPEAK WORDS ALOUD AND RECORD A SPEAKER'S EFFORTS TO IMITATE THE PROGRAM'S PERFECT ACCENT THOSE CAPABILITIES ARE BUILT INTO SOME APPLE COMPUTER INC MACINTOSH COMPUTERS AND CAN BE ADDED TO AN IBM COMPATIBLE PC WITH A SOUND CARD AND MICROPHONE AND SPEAKERS FOR ABOUT 300 SOME COME ON CDROMS REQUIRING 400 SPECIAL DRIVES THAT REMAIN RARE ON PCS MOST OF THE FOREIGN LANGUAGE TRAINING PROGRAMS SPEAK WORDS ALOUD WHILE DISPLAYING THE WORD OR PHRASE AND A RELATED PICTURE THEY WILL REPEAT THE WORD AS OFTEN AS THE USER CLICKS THE MOUSE NO PAINSTAKING REWINDING OF TAPES JUMP FORWARD OR BACK DISPLAY A TRANSLATION ON DEMAND WITHOUT THUMBING THROUGH A DICTIONARY AND NEVER CRITICIZE SOME QUIZ THE USER AND KEEP SCORE LETTING HIM OR HER SEE ANY IMPROVEMENT COL DONALD C FISCHER HEAD OF THE US DEFENSE LANGUAGE INSTITUTE IN MONTEREY CALIF SAYS HIS CREW OF 700 TEACHERS IS CREATING COMPUTERASSISTED LANGUAGE TEACHING AND REFRESHER COURSES FROM ARABIC TO TAGALOG COL FISCHER SAYS THE MIRACLE IS THAT FOR A COUPLE OF HUNDRED BUCKS WE CAN TURN EVERY WORD PROCESSOR IN THE DEFENSE DEPARTMENTJ INTO A MULTIMEDIA LANGUAGE TRAINING DEVICE COL FISCHER AND MOST OTHER EDUCATORS SAY STUDENTS AREN'T LIKELY TO BECOME PROFICIENT WITHOUT HELP FROM HUMAN TEACHERS AND COMPUTERS DON'T MAGICALLY SHORTEN THE LEARNING PROCESS IT STILL TAKES 200 TO 250 HOURS OF WORK TO GET THE EQUIVALENT OF A FIRST YEAR OF COLLEGE SPANISH SAYS MARTIN RICE A RUSSIAN PROFESSOR AT UNIVERSITY OF TENNESSEE WHO IS PRESIDENT OF HYPERGLOT SOFTWARE CO KNOXVILLE TENN A PRODUCER OF LANGUAGE TRAINING SOFTWARE MANY BUYERS OF THE PROGRAMS ARE LANGUAGE TEACHERS EXPERIMENTING WITH NEW WAYS TO STIMULATE THEIR STUDENTS BUT SOME ARE PEOPLE WHO SIMPLY FEEL THEY NEED TO KNOW MORE OF A LANGUAGE CHRISTOPHER CROTTY A RESEARCH MANAGER FOR KYOCERA CORP'S US ARM SAYS SINCE I WORK FOR A JAPANESE COMPANY IT WOULD CERTAINLY BE HELPFUL TO KNOW JAPANESE AFTER TAKING AN INTRODUCTORY COURSE AT THE JAPAN SOCIETY IN NEW YORK HE BOUGHT POWER JAPANESE A 389 PROGRAM MADE BY BAYWARE OF SAN FRANCISCO HE SAYS I FOUND THE COMPUTER WAS MORE EFFECTIVE GETTING THE DRILLS AND LEARNING THE CHARACTERS OVER AND OVER HELPS OTHERS USE COMPUTERS TO POLISH LOST SKILLS CESAR NORIEGA A SAN FRANCISCO NATIVE SAYS HE UNDERSTANDS SPANISH WELL BECAUSE HIS PARENTS SPEAK IT AT HOME BUT HE WANTED TO IMPROVE HIS READING COMPREHENSION LAST YEAR HE BOUGHT TRANSPARENT LANGUAGE AN UNUSUAL WRITTEN TRANSLATION PROGRAM FROM TRANSPARENT LANGUAGE INC HOLLIS NH THE 150 PROGRAM WHICH INCLUDES THE WINDMILL CHAPTER FROM DON QUIXOTE DISPLAYS THE SPANISH TEXT ON THE SCREEN AND AT THE TOUCH OF A KEY WILL DISPLAY THE ENGLISH TRANSLATION OF A WORD A PHRASE OR A WHOLE SENTENCE READING SPANISH I USED TO MISS A LOT OF TERMS AND PHRASING NOW WHEN I READ SPANISH MATERIAL I CAN EASILY TRANSLATE IT HE SAYS LANGUAGE PROGRAMS VARY CONSIDERABLY IN SCOPE AND QUALITY SAY PEOPLE WHO HAVE LOOKED AT A NUMBER MOST DEVELOPERS NATURALLY AIM AT THE BIGGEST MARKETS SPANISH JAPANESE AND FRENCH AS WELL AS ENGLISH FOR FOREIGNERS RUSSIAN GERMAN ITALIAN AND CHINESE PROGRAMS ARE ALSO AVAILABLE FROM HYPERGLOT AND SOME OTHERS TRANSPARENT LANGUAGE HAS A LATIN MODULE WITH THE AENEID PARSONS TECHNOLOGY CEDAR CITY IOWA HAS A PROGRAM TO TEACH ANCIENT GREEK TO BIBLICAL SCHOLARS AT NORTHEASTERN UNIVERSITY IN BOSTON SPEECH PATHOLOGISTS DESIGNED A PROGRAM FOR FOREIGN TEACHING ASSISTANTS TO IMPROVE THEIR ACCENTS SO UNDERGRADUATES COULD UNDERSTAND THEM THE PROGRAM CALLED SPEECHWORKS DEALS WITH SPEAKERS OF 30 DIFFERENT TONGUES FROM FARSI TO THAI AND EMPHASIZES PRACTICE ON DIFFERENT PROBLEMS DEPENDING ON THE NATIVE LANGUAGE THE STUDENT HEARS AN ENGLISH WORD WITH THE DESIRED ACCENT AND THEN TRIES TO REPEAT IT WHEN HE OR SHE PLAYS BACK THE TWO VOICES HE CAN QUICKLY COMPARE ACCENTS START TO IMPROVE QUICKLY BUT IT MAY TAKE MANY MONTHS FOR THEM TO BECOME UNOBTRUSIVE 9301250047 930125 CREDIT MARKETS BIG DEFICIT CUT COULD SHARPLY REDUCE RATES BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF PRESIDENT CLINTON KEEPS HIS PROMISE TO SLASH THE NATION'S MASSIVE BUDGET DEFICIT HOW MUCH WOULD INTEREST RATES DROP MANY ECONOMISTS BELIEVE THAT CUTTING THE FEDERAL DEFICIT BY 100 BILLION OR MORE WOULD BRING YIELDS ON LONGTERM BONDS DOWN SHARPLY PERHAPS BY AS MUCH AS A FULL PERCENTAGE POINT AND THAT WOULD PAVE THE WAY FOR CHEAPER MORTGAGES FOR HOMEOWNERS AND LOWER BORROWING COSTS FOR BUSINESSES THE DEFICIT IS COSTING US SIGNIFICANTLY IN TERMS OF LONGTERM INTEREST RATES SAYS DAVID WYSS AN ECONOMIST AT DATA RESOURCES INC A BOSTON ECONOMIC CONSULTING FIRM ALLEN SINAI CHIEF ECONOMIST AT BOSTON CO AGREES THE EXPECTATIONS OF PERMANENTLY HIGH FEDERAL DEFICITS HAS IN MY VIEW BEEN WORTH AS MUCH AS A COUPLE OF PERCENTAGE POINTS IN LONGTERM INTEREST RATES HE SAYS BUT TO GET LONGTERM RATES DOWN THE CLINTON ADMINISTRATION WOULD HAVE TO MAKE MAJOR AND PERMANENT CUTS IN THE FEDERAL DEFICIT WHICH IS EXPECTED TO REACH 300 BILLION THIS YEAR DATA RESOURCES BOSTON CO AND WEFA GROUP IN BALA CYNWYD PA THREE OF THE NATION'S LEADING ECONOMIC CONSULTANTS EACH PLUGGED HYPOTHETICAL DEFICIT CUTS INTO THE COMPUTER MODELS THEY USE TO PREDICT THE BEHAVIOR OF THE US ECONOMY ALL CAME TO SIMILAR CONCLUSIONS IF THE GOVERNMENT CUT THE FEDERAL DEFICIT BY 100 BILLION THEY SAY THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND NOW AT 729 WOULD FALL TO BETWEEN 64 AND 66 IF THE CLINTON ADMINISTRATION REALLY TAKES AN AX TO THE DEFICIT AND WHACKS OUT 200 BILLION LONGTERM TREASURY BOND YIELDS WOULD PLUMMET EVEN FURTHER TO LOW AS 575 THAT'S LOWER THAN THE YIELD ON 30YEAR BONDS HAS EVER BEEN SINCE THE TREASURY RESUMED ISSUING 30YEAR BONDS IN 1978 IF YOU REDUCE UNCLE SAM'S PRESENCE IN THE CREDIT MARKETS THEN THERE IS A GOOD BOND MARKET RALLY LURKING OUT THERE SAYS DONALD STRASZHEIM CHIEF ECONOMIST AT MERRILL LYNCH & CO THAT'S BECAUSE PRICES OF EXISTING BONDS RISE AS INTEREST RATES DECLINE DESPITE THE NATION'S GROWING BUDGET DEFICIT THE FEDERAL RESERVE HAS BEEN SUCCESSFUL IN DRIVING DOWN SHORTTERM INTEREST RATES OVER THE PAST THREE YEARS AS THE ECONOMY WEAKENED AND INFLATION FADED YIELDS ON THREEMONTH TREASURY BILLS FOR EXAMPLE HAVE PLUNGED FIVE PERCENTAGE POINTS TO ABOUT 3 NOW FROM 8 IN 1990 BUT LONGTERM INTEREST RATES HAVE BEEN MUCH MORE STUBBORN FALLING LESS THAN 1 3/4 PERCENTAGE POINTS SINCE 1990 AND ONE OF THE MAJOR REASONS FOR THAT IS THE BALLOONING FEDERAL BUDGET DEFICIT SAY ECONOMISTS LOWER LONGTERM INTEREST RATES WOULD BE GOOD NEWS FOR CONSUMERS AND FOR THE US GOVERNMENT THE NATION'S BIGGEST DEBTOR TAKE A LOOK AT HOMEMORTGAGE RATES WHICH CLOSELY TRACK THE YIELDS ON LONGTERM TREASURY NOTES AND BONDS SUPPOSE THE CLINTON FINANCIAL TEAM CAN CUT THE DEFICIT ENOUGH TO DRIVE LONGTERM INTEREST RATES DOWN BY ONE PERCENTAGE POINT AND SUPPOSE THAT PRODUCED A DECLINE IN THE RATE ON A 30YEAR MORTGAGE TO SAY 7 FROM 8 THAT WOULD REDUCE THE ANNUAL PAYMENTS ON A 100000 HOME LOAN TO ABOUT 7980 FROM 8808 FOR A SAVING OF OVER 800 A YEAR UNCLE SAM WOULD WIN TOO A DECLINE OF ONE PERCENTAGE POINT IN THE YIELD ON 30YEAR TREASURY BONDS TO 63 WOULD SAVE THE GOVERNMENT MORE THAN 400 MILLION ANNUALLY IN INTEREST PAYMENTS ON ANY NEW BONDS THAT IT SELLS AND SEVERAL BILLION DOLLARS OVER THE LIFE OF THE ISSUE THAT ASSUMES THAT THE GOVERNMENT SELLS 40 BILLION OF 30YEAR BONDS THE SAME AMOUNT IT SOLD IN 1992 THE WHITE HOUSE BUDGET OFFICE ESTIMATES THAT A SUSTAINED ONE PERCENTAGE POINT DECLINE IN INTEREST RATES ACROSS THE BOARD WOULD SAVE THE GOVERNMENT MORE THAN 13 BILLION IN THE FIRST YEAR WITH THE DEFICIT CURRENTLY PROJECTED TO REACH CLOSE TO 300 BILLION THIS YEAR AN IMMEDIATE CUT OF 100 BILLION SEEMS UNLIKELY NEVERTHELESS ECONOMISTS SAY BIG CUTS IN THE DEFICIT ARE PROBABLY NECESSARY BEFORE LONGTERM INTEREST RATES CAN COME DOWN SUBSTANTIALLY THE DEFICIT THEY SAY KEEPS LONGTERM INTEREST RATES HIGH FOR TWO MAJOR REASONS FIRST THE HUGE SUPPLY OF BONDS THE GOVERNMENT MUST SELL TO FINANCE THE GROWING DEFICIT IS BEGINNING TO TEST INVESTOR DEMAND IN RECENT QUARTERS THE GOVERNMENT HAS BEEN SELLING BETWEEN 10 BILLION AND 12 BILLION EACH OF 30YEAR BONDS AND 10YEAR NOTES IN 1984 THE SIZE OF THE 30YEAR BOND SALES WERE JUST 5 BILLION EACH QUARTER AND THE 10YEAR NOTE SALES WERE ABOUT 55 BILLION IF YOU BELIEVE IN THE LAW OF SUPPLY AND DEMAND THEN YOU HAVE TO BELIEVE THAT GOVERNMENT BORROWING SENDS INTEREST RATES UPWARD SAID DATA RESOURCES' MR WYSS YOU CAN ARGUE OVER HOW MUCH THE DEFICIT AFFECTS INTEREST RATES BUT IT'S CLEAR THAT IT DOES RAISE INTEREST RATES SECONDLY THE RAPIDLY RISING DEFICIT HAS RAISED CONCERN AMONG SOME INVESTORS THAT THE NATION'S DEBT PROBLEM COULD SOME DAY BECOME UNMANAGEABLE AND TRIGGER AN INFLATION CRISIS THEY NOTE THAT THE NATION'S BORROWING NEEDS ARE GROWING MUCH FASTER THAN THE DEFICIT PARTLY BECAUSE THE TREASURY NOT ONLY BORROWS TO FINANCE THE CURRENT DEFICIT BUT IT ALSO MUST REFINANCE OR REFUND OLDER MATURING DEBT LAST YEAR WHEN THE DEFICIT WAS ABOUT 297 BILLION THE GOVERNMENT BORROWED MORE THAN 500 BILLION FROM INVESTORS A LARGE PORTION OF WHICH WAS USED TO REFUND OLDER DEBT WHAT SO MANY PEOPLE DON'T SEE IS THE MONSTER CALLED THE REFUNDING DILEMMA SAYS RON RYAN PRESIDENT OF RYAN LABS INC A BOND MARKET RESEARCH FIRM THE REFUNDINGS NOW ARE LARGER THAN ALMOST ANY DEFICIT WE HAVE EVER HAD IN ANY YEAR AND IT'S SNOWBALLING ANXIETY ABOUT THE GOVERNMENT'S HEAVY DEBT BURDEN MAKES INVESTORS DEMAND A RISK PREMIUM WHEN THEY BUY GOVERNMENT BONDS SAYS MR SINAI IF ONE LOOKS AT THE HISTORY OF NATIONS AROUND THE WORLD THOSE THAT HAVE ACCUMULATED HUGE DEFICITS HAVE EVENTUALLY INFLATED THEIR WAY OUT OF THEIR DEBTOR POSITION HE POINTS TO SEVERAL HEAVILY INDEBTED LATIN AMERICAN COUNTRIES THAT TRIED TO CURE THEIR DEBT WOES BY ALLOWING THEIR ECONOMIES TO OVERHEAT IN THEORY A FASTRISING ECONOMY WOULD CREATE EXTRA TAX REVENUES WHICH OVER A FEW YEARS WOULD HELP WIPE OUT BIG DEFICITS BUT IN PRACTICE SUCH STRATEGIES HAVE OFTEN LED TO STAGGERING LEVELS OF INFLATION SOME INVESTORS FEAR THAT THE US COULD ONE DAY RESORT TO SUCH A STRATEGY OF HYPERINFLATION EVEN THOUGH MANY OBSERVERS IN WASHINGTON DOUBT THAT THE FEDERAL RESERVE WOULD EVER LET THAT HAPPEN ECONOMISTS WHO COMPARE REAL INTEREST RATES WHICH ARE RATES ADJUSTED FOR INFLATION ALSO FEEL THAT THE DEFICIT IS KEEPING LONGTERM INTEREST RATES UNUSUALLY HIGH IF YOU LOOK AT WHERE REAL LONGTERM INTEREST RATES ARE NOW AND COMPARE THEM TO EARLIER PERIODS OF TIME YOU CAN SEE THAT THERE IS A PREMIUM BUILT INTO CURRENT RATES SAYS BRUCE STEINBERG MANAGER OF MACROECONOMIC ANALYSIS AT MERRILL LYNCH AND THAT PREMIUM HE SAYS MUST REFLECT EXCESSES IN FEDERAL GOVERNMENT BORROWING LOOKING BACK THREE OR FOUR DECADES INTEREST RATES ON LONGTERM BONDS HAVE BEEN 25 PERCENTAGE POINTS TO THREE PERCENTAGE POINTS ABOVE INFLATION SO IF INFLATION WAS RUNNING AT 2 YIELDS ON LONGTERM BONDS WOULD BE 5 OR LOWER BUT EVEN THOUGH INFLATION IS CURRENTLY RUNNING AT BETWEEN 2 AND 3 YIELDS ON 30YEAR TREASURY BONDS ARE 729 THAT HAS MANY ECONOMISTS CONVINCED THAT SOMETHING OTHER THAN INFLATION THE FEDERAL DEFICIT IS PUTTING UPWARD PRESSURE ON LONGTERM INTEREST RATES THERE ARE A FEW SKEPTICS WHO SAY IT'S NEARLY IMPOSSIBLE TO FORECAST HOW MUCH INTEREST RATES WOULD FALL IF THE DEFICIT WERE REDUCED ROBERT GIORDANO CHIEF ECONOMIST AT GOLDMAN SACHS & CO SAYS IT'S VERY HARD FOR SOMEBODY TO DEMONSTRATE STATISTICALLY THAT THE BUDGET DEFICIT HAS KEPT YIELDS A LOT HIGHER THAN THEY OTHERWISE WOULD BE MR GIORDANO NOTES THAT YIELDS ON LONGTERM BONDS HAVE DECLINED OVER THE PAST THREE YEARS FROM A HIGH OF 9 IN MID1990 EVEN AS THE BUDGET DEFICIT CONTINUED TO EXPAND THE REASON SLOWER ECONOMIC GROWTH AND THE EASING OF INFLATION STILL EVEN MR GIORDANO BELIEVES THAT IF THE DEFICIT WERE CUT LONGTERM INTEREST RATES WOULD FALL THAT'S BECAUSE THE ECONOMY WOULD WEAKEN DUE TO THE DECLINE IN GOVERNMENT SPENDING PRICES OF TREASURY NOTES AND BONDS ROSE AS MUCH AS 1/4 POINT DESPITE A STRONGERTHANEXPECTED DECEMBER HOUSING STARTS REPORT THE HOUSING REPORT SHOWED THAT STARTS ROSE 55 DURING THE MONTH TO A 1302 MILLION UNIT ANNUAL RATE ANALYSTS' FORECASTS HAD CENTERED ON A DECLINE OF 08 TRADERS PAID MORE ATTENTION TO NEWS OF AN UNEXPECTED RISE IN INITIAL JOBLESS CLAIMS OF 17000 TO 361000 FOR THE WEEK ENDED JAN WHILE THE RISE IN CLAIMS WASN'T SEEN AS A SIGNAL OF RENEWED DETERIORATION IN THE LABOR MARKET IT GAINED IN SIGNIFICANCE IN THE WAKE OF A COMMENT LATE WEDNESDAY BY ROBERT MCTEER PRESIDENT OF THE FEDERAL RESERVE BANK OF DALLAS THAT FURTHER EASING OF MONETARY POLICY MAY BE NEEDED IF JOB GROWTH REMAINS SLOW OVERALL THE DATA PORTRAYED AN ECONOMY THAT CONTINUES TO IMPROVE ANALYSTS SAID THEY CONFIRMED THE ECONOMY IS PICKING UP BUT THE JOBS MARKET IS STILL HAVING SOME TROUBLE SAID MARILYN SCHAJA A MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP MARKET PARTICIPANTS HAVE BEEN IMPRESSED BY THE STEADY FLOW OF BUYING IN THE TREASURY MARKET THEY VIEW IT AS ESPECIALLY SIGNIFICANT COMING AHEAD OF LARGE AMOUNTS OF NEW SUPPLY WHICH BEGIN WITH THE SALE OF 1525 BILLION IN TWOYEAR NOTES TOMORROW AND 1125 BILLION IN FIVEYEAR NOTES WEDNESDAY MEANWHILE THE PRICES OF INTERESTONLY MORTGAGE SECURITIES PLUNGED DEALERS PRODUCE THESE SECURITIES BY STRIPPING INTEREST PAYMENTS FROM PRINCIPAL PORTIONS AS THE NAME IMPLIES IOS MAKE ONLY INTEREST PAYMENTS TO INVESTORS NEWS FRIDAY FROM THE MORTGAGE BANKERS ASSOCIATION THAT ITS WEEKLY INDEX OF HOMEMORTGAGE REFINANCING ACTIVITY ROSE TO 5894 IN THE WEEK ENDED JAN 15 FROM 4555 IN THE PREVIOUS WEEK SPOOKED IO INVESTORS AND POTENTIAL BUYERS IF MORE PEOPLE REFINANCE HOME LOANS AND THUS PREPAY EXISTING MORTGAGES THE IOS CREATED FROM THOSE MORTGAGES DISAPPEAR AND THE INVESTOR'S INCOME STREAM DRIES UP JUNK BONDS OF FOODMAKER INC SANK FRIDAY AFTER NEWS THAT A BOY HAD DIED FROM A BACTERIAL INFECTION LINKED TO A HAMBURGER HE ATE AT A JACK IN THE BOX RESTAURANT OPERATED BY FOODMAKER FOODMAKER 975 SENIOR SUBORDINATED DEBENTURES DUE 2002 DROPPED 2 1/2 POINTS TO 97 FOODMAKER OFFICIALS DENIED RESPONSIBILITY FOR THE DEATH AMONG THE BROADER HIGHYIELD MARKET MOST ISSUES ENDED FLAT TO UP 1/8 POINT TRADERS SAID INVESTOR DEMAND FOR HIGHYIELD DEBT IS STILL STRONG IF THE FEDERAL DEFICIT IS PERMANENTLY REDUCED THE YIELD ON 30YEAR TREASURY BONDS NOW 73 WOULD EVENTUALLY DECLINE TO 9301250046 930125 ABREAST OF THE MARKET INDIVIDUAL STOCKS SHOW BIG PRICE SWINGS DESPITE MARKET'S LACKLUSTER PERFORMANCE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STOCK MARKET MAY BE ACTING LIKE A COUCH POTATO THESE DAYS BUT INDIVIDUAL STOCKS ARE JUMPING UP AND DOWN EVEN THOUGH BROAD MARKET INDEXES SUCH AS THE DOW JONES INDUSTRIAL AVERAGE AND THE STANDARD & POOR'S 500 ARE MORIBUND INDIVIDUAL STOCKS ARE SOARING OR PLUNGING OFTEN IN A MATTER OF HOURS AND THAT MEANS THE OPPORTUNITY FOR INVESTORS TO MAKE BIG PROFITS OR LOSSES EQUALLY AS FAST TEN YEARS AGO SOMETHING REALLY HAD TO HAPPEN A COMPANY REALLY HAD TO LOSE MONEY FOR A STOCK TO DROP A COUPLE OF DOLLARS SAYS LASZLO BIRINYI WHO HEADS A FINANCIALSERVICES FIRM THAT BEARS HIS NAME NOW A CHAIRMAN CLEARS HIS THROAT AND WE'RE DOWN THREE POINTS LAST WEEK FOR INSTANCE POLAROID FELL MORE THAN 8 TO 27 1/4 AFTER IT SAID IT EXPECTED TO POST SIGNIFICANTLY LOWER OPERATING PROFIT FOR 1992 MEANWHILE WELLS FARGO'S STOCK JUMPED 13 OR 15 TO 99 IN A SINGLE DAY ON NEWS THAT THE CALIFORNIA BANK HAD REPORTED A FOURTHQUARTER PROFIT IN CONTRAST TO A LOSS A YEAR EARLIER EARLIER IN THE MONTH MOTOROLA SKYROCKETED 10 7/8 OR 97 TO 123 1/4 AFTER REPORTING THAT FOURTHQUARTER EARNINGS ROSE 44 DIGITAL EQUIPMENT SURGED 7 3/8 OR 21 TO 42 1/4 AFTER TELLING INVESTORS IT HAD MORE THAN HALVED ITS FISCAL SECONDQUARTER LOSS IN THE PAST BIG STOCKS WEREN'T ESPECIALLY SENSITIVE TO SUCH THINGS AS EARNINGS REPORTS OR CHANGING ANALYSTS' RECOMMENDATIONS IT TOOK A TAKEOVER PROPOSAL OR SOME CATASTROPHIC EVENT TO SHAKE UP INVESTORS NOT ANY MORE TAKEOVERS HAVE FADED AND NOW AN ANALYST'S RECOMMENDATION OR EARNINGS REPORT IS ENOUGH TO SET FIRE TO A STOCK OR DOUSE IT THAT'S ESPECIALLY TRUE AMONG SMALLER STOCKS WHICH INVESTORS BUY IN HOPES OF FAST EARNINGS GROWTH AND PRICE APPRECIATION IF A COMPANY COMES UP SHORT OF ANALYSTS' EARNINGS ESTIMATES THE STOCK PRICE GETS AN AUTOMATIC HAIRCUT REGARDLESS OF HOW BIG THE EARNINGS SHORTFALL IS SAYS ROBERT CZEPIEL MANAGER OF THE 290 MILLION ROBERTSON STEPHENS EMERGING GROWTH FUND WHICH POSTED A NEGATIVE 26 RETURN LAST YEAR IN ITS THIRDQUARTER REPORT ROBERTSON STEPHENS TOLD INVESTORS THAT THE RELATIVELY PLACID OVERALL PERFORMANCE OF THE STOCK MARKET MASKED A CONTINUATION FROM THE FIRST TWO QUARTERS OF SOME HORRENDOUS PRICE CORRECTIONS WHICH HURT THE FUND MR CZEPIEL SAYS THE FUND'S EXPERIENCE LAST YEAR SHOWS THAT STOCKPICKING IS THE NAME OF THE GAME IT'S NOT THE GROUP ACTION IT'S NOT THE MARKET IT'S THE INDIVIDUAL NAMES WHILE MR CZEPIEL SAYS HIS FUND WAS IN THE RIGHT SECTORS LAST YEAR IT HAD A NUMBER OF ROTTEN STOCKS THAT DRAGGED DOWN ITS PERFORMANCE THE EARNINGS DIDN'T COME THROUGH AND THEY WERE TRASHED HE SAYS ANOTHER REASON STOCKS ARE MOVING SO FAST AND FURIOUSLY THESE DAYS IS THAT THERE ARE SO MANY PERFORMANCEORIENTED MONEY MANAGERS PLAYING IN THE MARKET WHILE AN INDIVIDUAL INVESTOR MAY BUY SHARES OF MCDONALD'S CORP BECAUSE HE LIKES ITS HAMBURGERS A PROFESSIONAL MONEY MANAGER WILL ONLY STICK WITH THE STOCK IF THE EARNINGS ARE GOOD MOST DON'T CARE HOW THE HAMBURGERS TASTE AND THOSE MONEY MANAGERS TRYING TO GRAB A PIECE OF ALL THE NEW MONEY FLOWING TO THE STOCK MARKET ARE MORE CONCERNED WITH QUARTERLY PERFORMANCE THAN EVER BEFORE IN SOME WAYS THE MARKET HAS BECOME A GAME TO MANY OF THE PARTICIPANTS SAYS HERSH COHEN COMANAGER OF THE SHEARSON LEHMAN BROTHERS APPRECIATION FUND IT'S ALMOST AS IF YOU HAVE A BUNCH OF PEOPLE SITTING AT ARCADE VIDEOS TRYING TO HIT THEIR TARGETS FASTER AS SOON AS SOMETHING HAPPENS LIKE A WELLS FARGO MOVES UP EVERYBODY IS PRESSING THE BUTTON AND TRYING TO BUY SEVERAL MONEY MANAGERS ARGUE THAT THE HERD MENTALITY IS SO PERVASIVE THESE DAYS THAT A STOCK'S PRICE NOW WILL LEAP 10 OR 15 MERELY ON A CHANGE IN A BROKERAGE FIRM'S RECOMMENDATION ABOUT A STOCK'S INVESTMENT POTENTIAL I'M AMAZED HOW EVERYBODY WANTS TO DO THE SAME THING AT THE SAME TIME SAYS KENT SIMONS COMANAGER OF THE 1 BILLION NEUBERGER & BERMAN GUARDIAN FUND IT USED TO BE THAT WALL STREET WAS BULLS AND BEARS BUT NOW IT'S MOSTLY SHEEP MR SIMONS SAYS THE EMERGENCE OF SOCALLED MOMENTUM MONEY MANAGERS IS ADDING TO THE BIG SHORTTERM GAINS AND LOSSES IN STOCKS THESE MANAGERS FLOCK TO A STOCK ONLY AFTER IT BEGINS TO PERFORM WELL AND ABANDON IT AS SOON AS IT IS HIT BY BAD NEWS THE TREND TOWARD MASS MOVEMENTS INTO OR AWAY FROM STOCKS IS SO GREAT THAT IT IS EVEN CALLING INTO QUESTION ONE OF WALL STREET'S MOST FAMILIAR AXIOMS BUY ON THE RUMOR SELL ON THE NEWS IN 1992 WE SAW SELL ON THE RUMOR SELL ON THE NEWS' OBSERVES MR BIRINYI BUT FOR INVESTORS WILLING TO TRUST THEIR OWN INSTINCTS AND GO AGAINST THE HERD THE VOLATILE PRICE MOVES CAN BE LUCRATIVE MR SIMONS SAYS FUNDS LIKE HIS NOW OWN HIGHER QUALITY STOCKS THAN THEY DID A FEW YEARS AGO THAT'S BECAUSE WHEN A SECTOR IS OUT OF FAVOR INVESTORS PUMMEL THE ENTIRE GROUP INSTEAD OF BEING FORCED TO SHOP AMONG ONLY THE DOGS IN A GIVEN INDUSTRY MR SIMON SAYS HE'S SEEING OPPORTUNITIES TO SCOOP UP SOME OF THE PREMIER ISSUES TOO THAT'S JUST WHAT HE DID RECENTLY WHEN THE PRICES OF SUCH TOPLINE DRUG COMPANIES AS SCHERINGPLOUGH PFIZER GLAXO HOLDINGS AND ABBOTT LABORATORIES WERE BEATEN DOWN ON FEARS THAT THE CLINTON ADMINISTRATION WILL TRY TO CAP DRUG COSTS HE ALSO MANAGED TO PURCHASE SOME DOWNTRODDEN OIL STOCKS WHEN SINKING OIL PRICES SENT THOSE ISSUES INTO A TAILSPIN I THINK IT WAS A STOCK PICKER'S MARKET IN 1992 AND I THINK IT IS GOING TO BE AGAIN IN 1993 MR SIMONS SAYS AND OTHER PORTFOLIO MANAGERS AGREE THIS IS GOING TO BE A YEAR WHEN WHAT STOCKS YOU ARE IN IS VERY IMPORTANT SAYS SHEARSON'S MR COHEN STOCKS CLIMBED IN HEAVY TRADING THE DOW JONES INDUSTRIAL AVERAGE ROSE 379 POINTS TO 325681 THE STANDARD & POOR'S 500STOCK INDEX EDGED UP 062 TO 43611 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 059 TO 24041 VOLUME TOTALED 293250000 SHARES UP FROM THURSDAY'S 257350000 ADVANCING ISSUES TOPPED DECLINERS 1097 TO 762 FOR THE WEEK THE INDUSTRIAL AVERAGE WAS OFF 04 AND THE S&P 500 WAS DOWN 02 WORLDWIDE STOCK PRICES ROSE FRIDAY IN LATE NEW YORK TRADING THE DOW JONES WORLD STOCK INDEX WAS UP 019 AT 9177 STEEL STOCKS WERE AMONG THE MOST ACTIVE MARKET SECTORS FRIDAY WITH LTV ADDING 3/8 TO 1 1/8 ACCORDING TO A REORGANIZATION PLAN FILED LAST TUESDAY EACH LTV COMMON SHARE WILL BE EXCHANGED FOR WARRANTS VALUED AT ONLY 322 CENTS ONCE THE COMPANY EMERGES FROM CHAPTER 11 BANKRUPTCY PROTECTION A SPOKESMAN FOR LTV SAID THERE'S A FAIR CHANCE THAT A NUMBER OF INVESTORS DIDN'T GET THE INFORMATION ON THE PLAN OF REORGANIZATION SOME INVESTORS MAY HAVE ALSO BEEN FOCUSING ON RECENTLY ANNOUNCED STEEL PRICE INCREASES USXUS STEEL GROUP SAID FRIDAY IT IS RAISING BASE PRICES FOR HOT AND COLD ROLLED SHEET STEEL PRODUCTS BY 20 A TON MATCHING AN INCREASE MADE THE PREVIOUS DAY BY LTV USXUS STEEL JUMPED 2 3/4 TO 37 3/4 OTHER STEEL COMPANY STOCKS ROSE TOO BETHLEHEM STEEL GAINED 1 3/4 TO 19 1/4 INLAND STEEL ADDED 7/8 TO 24 1/8 AND GENEVA STEEL WAS UP 1 1/2 TO 13 7/8 MCDONNELL DOUGLAS ROCKETED 5 1/2 OR ALMOST 10 TO 62 THE ST LOUIS AEROSPACE COMPANY SAID IT WILL LAY OFF 4000 MORE EMPLOYEES AT ITS DOUGLAS AIRCRAFT CO UNIT THIS YEAR AMERICAN TELEPHONE & TELEGRAPH SLID 1 1/4 TO 53 7/8 BEAR STEARNS LOWERED ITS INVESTMENT RATING ON THE TELECOMMUNICATIONS GIANT TO HOLD FROM BUY PRIMARILY BECAUSE OF ITS PRICE TEXAS INSTRUMENTS TUMBLED 4 3/8 TO 54 1/8 THE ELECTRONICS MANUFACTURER POSTED A FOURTHQUARTER PROFIT OF 78 MILLION OR 80 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 85 MILLION OR 118 A SHARE AFTER A 55 MILLION CHARGE TANDYCRAFTS WHICH OPERATES STORES SELLING LEATHER PRODUCTS FURNITURE AND OFFICE SUPPLIES SURGED 4 1/2 TO 38 1/2 THE COMPANY POSTED A FISCAL SECONDQUARTER PROFIT OF 25 MILLION OR 46 CENTS A SHARE COMPARED WITH A PROFIT OF 576000 OR 11 CENTS A SHARE A YEAR EARLIER RALSTON PURINA GAINED 4 3/8 TO 49 5/8 THE COMPANY SAID LATE THURSDAY THAT ITS BOARD HAD APPROVED A PLAN THAT WOULD LEAD TO THE SPINOFF OF A 55 STAKE IN ITS CONTINENTAL BAKING GROUP UNIT THE PLAN IS SUBJECT TO SHAREHOLDER APPROVAL THE CONTINENTAL SUBSIDIARY HAS BEEN DRAGGING DOWN THE PARENT COMPANY'S PERFORMANCE FOODMAKER FALTERED 2 1/2 TO 9 1/2 A TWOYEAROLD BOY DIED AFTER EATING A HAMBURGER THAT WAS SERVED IN A JACKINTHEBOX RESTAURANT IN SEATTLE ROBERT NUGENT PRESIDENT AND CHIEF EXECUTIVE OF THE FASTFOOD CHAIN WHICH IS A UNIT OF FOODMAKER SAID THE MEAT WAS PROBABLY CONTAMINATED BEFORE IT REACHED A JACKINTHEBOX DISTRIBUTION CENTER IN SEATTLE BRIGGS & STRATTON SURGED 3 3/4 TO 56 5/8 THE ENGINE MAKER REPORTED FISCAL SECONDQUARTER NET INCOME OF 234 MILLION OR 162 A SHARE COMPARED 181 MILLION OR 125 A SHARE A YEAR EARLIER BOWATER SLID 1 3/4 TO 21 3/8 A SMITH BARNEY HARRIS UPHAM ANALYST PARED HIS RATING ON THE PAPER PROCESSOR'S STOCK TO UNDERPERFORMER FROM HOLD 9301250045 930125 TECHNOLOGY BRIEF ICN PHARMACEUTICALS INC FIRM AND ITS VIRATEK UNIT RESTATE RESULTS DOWNWARD VIRATEK INC AND ITS PARENT ICN PHARMACEUTICALS INC RESTATED DOWNWARD THEIR THIRDQUARTER RESULTS TO INCLUDE PREVIOUSLY DEFERRED RESEARCH AND DEVELOPMENT COSTS RELATED TO VIRATEK'S HEPATITIS C DRUG VIRATEK SAID THE NEW CHARGES REPRESENTING COSTS DEFERRED IN 1992 REFLECT ITS RECENT DECISION TO ACCELERATE THE RESEARCH AND DEVELOPMENT PROGRAM FOR ITS ANTIVIRAL DRUG VIRAZOLE IN THE TREATMENT OF HEPATITIS C COOPERS & LYBRAND THE COSTA MESA CALIF COMPANY'S AUDITOR SAID IT AGREED WITH THE MORE CONSERVATIVE ACCOUNTING APPROACH AS A RESULT VIRATEK RESTATED ITS NET INCOME AND PERSHARE EARNINGS FOR THE THIRD QUARTER OF 1992 TO 679000 OR FIVE CENTS A SHARE FROM 15 MILLION OR 10 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD NET OF 13 MILLION OR NINE CENTS A SHARE FOR ICN 78OWNER OF VIRATEK THE RESTATEMENT WIDENED ITS THIRDQUARTER NET LOSS TO 97 MILLION OR 69 CENTS A SHARE FROM A NET LOSS OF 9 MILLION OR 64 CENTS A SHARE A YEAR EARLIER ICN HAD A NET LOSS OF 21 MILLION OR 20 CENTS A SHARE 9301250044 930125 TECHNOLOGY BRIEF BDM INTERNATIONAL INC WORK WITH ELECTROSOURCE ON CAR BATTERIES IS PLANNED BDM INTERNATIONAL INC MCLEAN VA IS TEAMING UP WITH ELECTROSOURCE INC TO INCREASE PRODUCTION OF ELECTROSOURCE'S LEADACID BATTERIES FOR USE IN ELECTRIC VEHICLES IN EXCHANGE FOR A PORTION OF THE BATTERYSALE PROCEEDS BDM WILL CONTRIBUTE MANUFACTURING KNOWHOW TO ELECTROSOURCE TO INCREASE ITS PILOT PRODUCTION OF THE BATTERIES BDM SAID ELECTROSOURCE AUSTIN TEXAS MAKES ENOUGH BATTERIES EACH DAY TO POWER ONE AUTOMOBILE IN A YEAR AND A HALF IT WILL BE PRODUCING ENOUGH BATTERIES EACH DAY TO POWER 10 AUTOMOBILES BDM SAID ELECTROSOURCE'S HORIZON BATTERY USES A LEAD MESH INSTEAD OF LEAD PLATES TO INCREASE BATTERY POWER THE COMPANY HAS RECEIVED FUNDING FROM THE UTILITYBACKED ELECTRIC POWER RESEARCH INSTITUTE FOR THE BATTERY'S DEVELOPMENT THE BATTERY IS FOUR TIMES AS EXPENSIVE AS CONVENTIONAL BATTERIES BUT IS MORE EFFICIENT AND LASTS LONGER ELECTROSOURCE SAID 9301250042 930125 CORRECTIONS & AMPLIFICATIONS CODA ENERGY INC IS BASED IN DALLAS THURSDAY'S BUSINESS BULLETIN COLUMN INCORRECTLY SAID THE OIL AND NATURAL GAS COMPANY WAS BASED IN HOUSTON SANDRA M BIRNBAUM A 1992 LAWSCHOOL GRADUATE OPENS MAIL IN A WORKERCOMPENSATION OFFICE OF GENERAL MOTORS CORP SHE DOESN'T PROCESS CLAIMS AS REPORTED IN FRIDAY'S LEGAL BEAT COLUMN BARRY S GELLER A FORMER OFFICIAL OF PAR PHARMACEUTICAL INC A SUBSIDIARY OF PHARMACEUTICAL RESOURCES INC RECENTLY PLEADED GUILTY TO OBSTRUCTING A FEDERAL INSPECTION INVOLVING PAR'S GENERIC FORMULATION OF THE BRANDED HYPERTENSION DRUG MAXZIDE THE INVESTIGATION INVOLVED PAR'S APPLICATION TO MARKET THE GENERIC VERSION AND SWITCHING OF TWO BATCHES OF ITS OWN PRODUCT NOT SWITCHING OF THE BRAND NAME PRODUCT FOR PAR'S VERSION AN ARTICLE LAST WEDNESDAY INCORRECTLY SAID MR GELLER ADMITTED TO OBSTRUCTING THE FEDERAL INVESTIGATION BY PASSING OFF SAMPLES OF THE ORIGINAL BRANDNAME DRUG AS PAR'S OWN NEITHER MR GELLER NOR PAR WERE EVER ALLEGED TO HAVE SUBSTITUTED A BRAND NAME PRODUCT AS PAR'S OWN IN SEEKING FOOD AND DRUG ADMINISTRATION APPROVAL FOR THE GENERIC EQUIVALENT A CANADIAN RESEARCH STUDY THAT FOUND THAT WOMEN WHO WORK NIGHT SHIFTS ARE MORE LIKELY TO SUFFER MISCARRIAGES THAN WOMEN WHO WORK DAY SHIFTS WAS PUBLISHED IN EPIDEMIOLOGY A JAN 11 ARTICLE INCORRECTLY STATED THE STUDY WAS PUBLISHED IN THE AMERICAN JOURNAL OF EPIDEMIOLOGY A DIFFERENT MEDICAL JOURNAL BOWATER INC'S FOURTHQUARTER LOSS WAS WIDER THAN EXPECTED BECAUSE OF RECENT DECREASES IN PULP PRICES AN ARTICLE FRIDAY INCORRECTLY SAID THE RECENT PRICE DECREASES WERE IN NEWSPRINT 9301250041 930125 BUSINESS BRIEF GENERAL DYNAMICS CORP RESULTS FOR THE FOURTH PERIOD WILL INCLUDE 95 MILLION GAIN GENERAL DYNAMICS CORP SAID ITS FOURTHQUARTER RESULTS DUE TO BE RELEASED THIS WEEK WILL INCLUDE A GAIN OF 95 MILLION OR 305 A SHARE REFLECTING A TAX CREDIT THAT RESULTED FROM A STUDY OF PRIORYEAR INVESTMENT RESEARCH AND DEVELOPMENT EXPENDITURES THE AEROSPACE COMPANY BASED IN FALLS CHURCH VA ALSO SAID THE WAITING PERIOD REQUIRED UNDER THE HARTSCOTTRODINO ACT ON THE COMPANY'S PROPOSED SALE OF ITS TACTICAL MILITARY AIRCRAFT BUSINESS TO LOCKHEED CORP HAS EXPIRED THE FEDERAL TRADE COMMISSION WHICH REVIEWED THE PROPOSED SALE DIDN'T REQUEST ADDITIONAL INFORMATION DURING THE WAITING PERIOD AND THE PARTIES NOW EXPECT TO CLOSE THE TRANSACTION NEXT MONTH AS A RESULT GENERAL DYNAMICS WILL ACCOUNT FOR THE MILITARY AIRCRAFT BUSINESS AS DISCONTINUED OPERATIONS IN ITS FOURTH QUARTER AND FULLYEAR 1992 EARNINGS 9301250040 930125 BUSINESS BRIEF TANDYCRAFTS INC NET INCOME CLIMBED SHARPLY IN THE FISCAL SECOND QUARTER TANDYCRAFTS INC FORT WORTH TEXAS SAID ITS NET INCOME FOR THE SECOND QUARTER ENDED DEC 31 MORE THAN QUADRUPLED TO 25 MILLION OR 46 CENTS A SHARE FROM 576000 OR 11 CENTS A SHARE A YEAR EARLIER SALES INCREASED 27 TO 477 MILLION FROM 375 MILLION THE YEAREARLIER NET WAS DEPRESSED BY ONETIME CHARGES RELATING TO THE CLOSURES OF A MANUFACTURING FACILITY AND SEVERAL RETAIL LOCATIONS THE COMPANY ALSO ANNOUNCED A 2FOR1 STOCK SPLIT PAYABLE FEB 26 TO STOCK OF RECORD FEB 5 TANDYCRAFTS' SECOND STOCK SPLIT IN FOUR MONTHS THE RETAILER SAID ITS NET FOR THE FISCAL FIRST HALF SOARED TO 37 MILLION OR 67 CENTS A SHARE FROM 804000 OR 16 CENTS A SHARE THE YEAR BEFORE AS NET SALES GREW 24 TO 838 MILLION FROM 677 MILLION EARL COX CHAIRMAN ATTRIBUTED THE LEAP IN RESULTS TO RECENT ACQUISITIONS AND THE CLOSURE OF POORLY PERFORMING UNITS THE RESULTS WERE ACHIEVED WITH 39 FEWER RETAIL STORES THAN THE PRIOR YEAR HE SAID 9301250039 930125 BUSINESS BRIEF TEXAS INSTRUMENTS INC NET INCOME OF 78 MILLION POSTED FOR FOURTH QUARTER WITH STRONG SEMICONDUCTOR ORDERS AND REVENUE PUSHING ITS CONTINUED TURNAROUND TEXAS INSTRUMENTS INC REPORTED NET INCOME FOR THE FOURTH QUARTER OF 78 MILLION OR 80 CENTS A SHARE THE FIGURE COMPARED WITH A NET LOSS OF 85 MILLION OR 118 A SHARE IN THE YEAREARLIER PERIOD REVENUE BUOYED BY RISING SEMICONDUCTOR SALES ROSE 13 TO 199 BILLION FROM 175 BILLION COMPANY OFFICIALS SAID THEY WERE PLEASED WITH THE GAINS FROM A DISMAL 1991 JERRY R JUNKINS CHAIRMAN SAID THE COMPANY'S SEMICONDUCTOR ORDERS AND REVENUE REACHED RECORD LEVELS IN 1992 BILL AYLESWORTH CHIEF FINANCIAL OFFICER SAID HE EXPECTS CONTINUED GROWTH IN THE SEMICONDUCTOR MARKET TO MORE THAN MAKE UP FOR THE DECLINING DEFENSE MARKET IN VIEW OF BOOMING SEMICONDUCTOR DEMAND THE COMPANY SAID IT WILL INCREASE CAPITAL EXPENDITURES THIS YEAR TO 625 MILLION FROM 429 MILLION IN 1992 9301250038 930125 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 3/4 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 89 DAYS 310 90 TO 119 DAYS 312 120 TO 149 DAYS 317 150 TO 179 DAYS 320 180 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 269 ONE MONTH 273 TWO MONTHS 278 THREE MONTHS 287 SIX MONTHS 309 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 307 ONE MONTH 315 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 302 60 DAYS 304 90 DAYS 308 120 DAYS 310 150 DAYS 313 180 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 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 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 TUESDAY JANUARY 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 313 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 768 60 DAYS 775 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 770 60 DAYS 779 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 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 9301250037 930125 COMMODITIES COFFEE PRODUCERS CONSUMERS CONVENE FOR TALKS BUT NO RELIEF FROM PRICE SLUMP IS EXPECTED BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL EVEN AS COFFEE PRODUCERS AND CONSUMERS GATHER IN LONDON TODAY TO TRY TO HALT THE STEADY EROSION IN COFFEE PRICES EXPERTS AREN'T HOLDING OUT MUCH HOPE THAT THE MORIBUND COFFEE MARKET WILL PERK UP FOR MORE THAN THREE YEARS NOW FOLLOWING THE COLLAPSE OF A GLOBAL EXPORTQUOTA ACCORD THE MARKET HAS WALLOWED IN A DEEP SOMETIMES VOLATILE FUNK TIMES ARE ESPECIALLY TOUGH FOR PRODUCERS AT FRIDAY'S CLOSE OF 6280 CENTS A POUND FOR THE MARCH CONTRACT THE PRICE OF COFFEE IS LESS THAN HALF WHAT IT WAS WHEN THE LAST PRODUCTION ACCORD BROKE DOWN IN JULY 1989 JUST SINCE THE BEGINNING OF 1993 THE PRICE HAS FALLEN 21 FROM ABOUT 80 CENTS A POUND FOR MARCH DELIVERY ON THE COFFEE SUGAR AND COCOA EXCHANGE IN NEW YORK PEOPLE WHO GROW COFFEE AREN'T MAKING ANY MONEY NOW SAYS SCOTT MEYERS A REDELSILGO ANALYST IN NEW YORK WHO HAS TRACKED THE MARKET FOR MORE THAN A DECADE WITH COFFEE FUTURES TRADING BELOW THE COST OF PRODUCTION FOR MANY GROWERS PRODUCERS CLAIM THEY'RE EAGER TO REACH A SUCCESSFUL ACCORD PRODUCERS ARE FIRMLY INTENT ON AN AGREEMENT SAYS VALDEMAR LEAO A LONDONBASED BRAZILIAN DELEGATE TO THE COFFEE TALKS IT IS MERELY A QUESTION OF DETAIL BUT THE DETAILS ARE THE PROBLEM BRAZIL AND COLOMBIA THE TWO BIGGEST COFFEE PRODUCERS ARE SEEKING TO PROTECT THEIR SHARE OF THE WORLD MARKET BY INSISTING ON A COMBINED 45 OF ANY EXPORT QUOTA SAYS MR LEAO THAT ISN'T LIKELY TO SIT WELL WITH OTHER PRODUCERS OR WITH COFFEE CONSUMERS ANALYSTS SAID BRAZIL'S INSISTENCE ON MAINTAINING ITS MARKET SHARE AND SUSPICIONS THAT THE BIG PRODUCERS WERE SURREPTITIOUSLY EXCEEDING THEIR QUOTAS LED TO THE BREAKDOWN OF THE PREVIOUS ACCORD IT'S VERY QUESTIONABLE WHETHER OTHER PRODUCERS AND CONSUMERS WOULD AGREE TO THESE MARKETSHARE FIGURES THAT BRAZIL AND COLOMBIA DESIRE SAYS JUDITH GANES A SENIOR COFFEEFUTURES ANALYST WITH MERRILL LYNCH IN NEW YORK ADDS LAWRENCE EAGLES AN ANALYST WITH GNI LTD A COMMODITY BROKERAGE FIRM IN LONDON THERE APPEARS TO BE THE POLITICAL WILL FOR AN ACCORD BUT THE MARKET WON'T TAKE THE TALKS SERIOUSLY UNLESS THEY AGREE ON SPECIFIC MEASURES US ROASTERS WHO BUY AN AVERAGE 30 OF THE WORLD COFFEE EXPORT CROP EACH YEAR ARE GENERALLY OPPOSED TO AN AGREEMENT PREFERRING INSTEAD TO LET THE MARKET SET PRICES SOME PEOPLE BELIEVE THAT EVEN IF YOU DO PATCH AN AGREEMENT TOGETHER IT WOULDN'T WORK BECAUSE IT WOULDN'T BE ENFORCEABLE SAYS GEORGE E BOECKLIN PRESIDENT OF THE NATIONAL COFFEE ASSOCIATION A TRADE GROUP REPRESENTING US ROASTERS AND IMPORTERS THE GROUP'S BOARD STANDS BY ITS MAY 1992 RESOLUTION THAT THE INTERESTS OF THE UNITED STATES' COFFEE CONSUMER AND INDUSTRY ARE BEST ACCOMMODATED BY FREE AND UNRESTRICTED TRADE IN COFFEE THE US GOVERNMENT ISN'T TAKING A FIRM POSITION ON AN AGREEMENT MYLES FRECHETTE THE US TRADE REPRESENTATIVE'S DELEGATE TO THE COFFEE NEGOTIATIONS SAID THE CLINTON ADMINISTRATION HASN'T HAD TIME YET TO DEVELOP A COFFEE POLICY HE SAID THAT WHILE THE US GOVERNMENT WOULD USUALLY OPPOSE THE CREATION OF ANY CARTELS THE BUSH ADMINISTRATION HAD BACKED TALKS AIMED AT ACHIEVING AN EXPORT AGREEMENT BECAUSE HIGHER COFFEE PRICES PRESUMABLY WOULD BOLSTER DEMOCRACY IN COLOMBIA WHICH HAS BEEN UNDER THREAT FROM DRUG CORRUPTION AND VIOLENCE ONE FACTOR DEPRESSING COFFEE PRICES IS THE BUILDUP OF HUGE STOCKPILES CERTIFIED STOCKS OF STANDARD COFFEE BEANS IN US WAREHOUSES HAVE CLIMBED TO 54 MILLION BAGS COMPARED WITH TWO MILLION BAGS A YEAR AGO AND ONLY 200000 BAGS WHEN THE LAST EXPORT ACCORD BROKE DOWN AT THE SAME TIME INCREASING CONCERNS ABOUT THE HEALTH EFFECTS OF CAFFEINE HAVE LEFT DAILY US COFFEE CONSUMPTION FLAT AT ABOUT 175 CUPS A PERSON SINCE 1985 AFTER HITTING A PEAK OF 31 CUPS A PERSON IN 1962 WHILE THERE HAS BEEN A RISE IN DEMAND FOR CERTAIN PREMIUM BLENDS OF COFFEE THE LUXURY BLENDS DON'T AFFECT THE PRICE OF GREEN COFFEE BEANS TRADED ON OFFICIAL COMMODITY EXCHANGES AS A NATION WE'VE BECOME TREMENDOUSLY CONCERNED WITH HEALTH IN THE 1980S NOTES MR MEYERS THE REDELSILGO ANALYST THE DAYS OF COFFEE PRICES MAT TE PRODUCER LEVEL RETURNING TO 150 A BAG ARE GONE THE ONLY POSSIBLE CATALYST TO THAT LEVEL IS MAJOR WEATHER DAMAGE TO THE BRAZILIAN CROP DROUGHT CONDITIONS HIT BRAZIL IN 1986 AND 1987 AND TRIGGERED A SHARP JUMP IN COFFEE FUTURES IN THE ENSUING MONTHS ABOUT THE BEST COFFEE PRODUCERS CAN REALISTICALLY HOPE FOR IS THAT BRAZIL'S COFFEE CROP NEXT YEAR WILL GROW ONLY MARGINALLY INDUSTRY ESTIMATES ARE THAT BRAZIL WHICH PRODUCED 30 MILLION BAGS A YEAR IN THE LATE 1980S WILL PRODUCE 23 MILLION BAGS OF COFFEE FOR THE 199394 CROP YEAR UP FROM 18 MILLION TO 22 MILLION BAGS IN 199293 EACH BAG REPRESENTS 132276 POUNDS OF COFFEE IT SEEMS MORE LIKELY TO SOME EXPERTS THOUGH THAT BRAZIL'S NEW EXPORTMINDED ADMINISTRATION UNDER PRESIDENT ITAMAR FRANCO WILL DECIDE TO BOOST ITS FOREIGNCURRENCY RESERVES BY FLOODING THE EXPORT MARKET WITH ITS CHOICE BEANS WHILE RELEASING STOCKS OF LOWERQUALITY BEANS FOR CONSUMPTION IN ITS HUGE DOMESTIC MARKET PRESIDENT FRANCO'S NEW GOVERNMENT IS PLAGUED BY DEBT REPAYMENT PROBLEMS AND INFLATION AND THERE ISN'T A COORDINATED PRODUCTION OR EXPORT POLICY OBSERVES PETER GREENHALGH HEAD OF COFFEE RESEARCH AT LANDELL MILLS COMMODITIES STUDIES AN OXFORD ENGLAND CONSULTANCY LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK CATTLE TRADERS WILL FOCUS ON THE AGRICULTURE DEPARTMENT'S QUARTERLY FEEDLOT SURVEY WHICH IS TO BE RELEASED FRIDAY DAN VAUGHT A LIVESTOCK ANALYST AT AG EDWARDS & SONS ST LOUIS SAID HE EXPECTS THE AGRICULTURE DEPARTMENT TO REPORT THAT THE CATTLE INVENTORY IN FEEDLOTS IN THE 13 MAJOR RANCH STATES WAS 4 BIGGER THAN A YEAR EARLIER FEEDLOTS FATTEN YOUNG CATTLE FOR SLAUGHTER THE US FEEDLOT POPULATION HAS BEEN CLIMBING STEADILY SINCE LAST SUMMER WHICH SIGNALS RISING BEEF SUPPLIES THIS YEAR AND WEAKER PRICES CATTLE FUTURES PRICES HAVE BEEN STRONG IN RECENT WEEKS HOWEVER BECAUSE AN UNUSUALLY SNOWY WINTER IN THE NATION'S MIDSECTION IS SLOWING THE GROWTH RATE OF CATTLE ALTHOUGH CATTLE GENERALLY TOLERATE COLD TEMPERATURES WELL THEY REQUIRE MORE NUTRITION DURING WET AND SNOWY WEATHER LIVECATTLE FUTURES FOR FEBRUARY DELIVERY GAINED 12 CENTS FRIDAY TO SETTLE AT 7955 CENTS A POUND ON THE CHICAGO MERCANTILE EXCHANGE MR VAUGHT SAID HE EXPECTS THE AGRICULTURE DEPARTMENT TO REPORT THAT THE PLACEMENT OF YOUNG CATTLE ON FEEDLOTS IN OCTOBER THROUGH DECEMBER ROSE 1 FROM A YEAR EARLIER WHILE SALES TO MEATPACKERS SLIPPED 1 ANALYSTS SAID THEY EXPECT GOLD AND SILVER FUTURES PRICES TO COME UNDER FURTHER SELLING PRESSURE NEXT WEEK WHILE PLATINUM AND PALLADIUM ARE LIKELY TO CONTINUE THEIR FIRMER TONE AMID REPORTS OF TIGHTENING SUPPLIES FOR THE TWO WHITE METALS WE'LL PROBABLY SEE A NARROW RANGE FOR GOLD WITH 330 AN OUNCE AS THE HIGH AND 327 AS THE LOW SAID PAUL SHELLMAN AN OPTIONS STRATEGIST WITH UNION BANK OF SWITZERLAND IN NEW YORK LOW INFLATION REPORTS OF CENTRALBANK BULLION SALES AND LOW VOLATILITY ARE KEEPING GOLD ON A LOWER AND NARROW TREND MR SHELLMAN SAID SPECULATION ABOUT SUPPLY PROBLEMS IN RUSSIA WILL SUPPORT PLATINUM AND PALLADIUM FUTURES PRICES WHICH SURGED LAST WEEK ON EARLY INDICATIONS OF SUCH TIGHTENING IN TRADING ON THE NEW YORK COMMODITY EXCHANGE FRIDAY FEBRUARY GOLD ENDED DOWN 70 CENTS AN OUNCE AT 32860 APRIL PLATINUM FINISHED 30 CENTS HIGHER AT 366 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE 9301250036 930125 BRINKER INTERNATIONAL'S CHIEF IS UNCONSCIOUS AFTER POLO ACCIDENT DALLAS RESTAURATEUR NORMAN BRINKER REMAINED HOSPITALIZED IN STABLE CONDITION AFTER SUFFERING A HEAD INJURY IN A FLORIDA POLO ACCIDENT LAST WEEK BUT HASN'T YET REGAINED CONSCIOUSNESS THE 61YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BRINKER INTERNATIONAL INC SUFFERED A CLOSED HEAD INJURY MEANING THE SKULL WASN'T PENETRATED AFTER HIS HORSE AND ANOTHER COLLIDED DURING A MATCH THURSDAY AT THE PALM BEACH POLO CLUB ACCORDING TO DALLAS NEUROSURGEON PHILLIP E WILLIAMS JR DR WILLIAMS WHO WAS FLOWN TO ST MARY'S HOSPITAL IN WEST PALM BEACH FLA TO EXAMINE MR BRINKER OVER THE WEEKEND SAID IT WAS STILL TOO EARLY TO BE SURE OF THE PROGNOSIS WE'RE CAUTIOUSLY OPTIMISTIC HE'S STABLE NEUROLOGICALLY AND EVERYTHING'S GOING OUR WAY DR WILLIAMS SAID ADDING IT'S HOUR TO HOUR AND DAY TO DAY HE SAID TESTS ARE CONTINUING BUT THAT NO SURGERY IS INDICATED ALTHOUGH THE LONGTIME POLO ENTHUSIAST WAS HURT THURSDAY COMPANY OFFICIALS DIDN'T ISSUE A NEWS RELEASE UNTIL THE STOCK MARKET CLOSED FRIDAY THE STATEMENT SAID EXACT DETAILS OF THE INCIDENT WEREN'T KNOWN THE COMPANY WHEN PRESSED FOR DETAILS SAID ONLY THAT THE EXECUTIVE HAD APPARENTLY SUFFERED CRACKED RIBS 9301250035 930125 CONVERGENCE THEORY MAKES A COMEBACK TREND IN BOND YIELDS RESUMES AS EC TURMOIL SUBSIDES BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JUST WHEN YOU THOUGHT IT WAS CONSIGNED TO THE DUSTBIN OF FINANCIAL HISTORY THE GREAT EUROPEAN CONVERGENCE THEORY IS MAKING A COMEBACK IT WAS ALL THE RAGE IN 1991 AND 1992 THE IDEA RESTS ON THE NOTION THAT AS COUNTRIES OF THE EUROPEAN COMMUNITY ACHIEVE GREATER UNITY ECONOMIC CONDITIONS SUCH AS INFLATION AND INTEREST RATES WILL GRADUALLY COME TOGETHER THE THEORY LED TO A STEADY DECLINE IN BOND YIELDS IN SOCALLED PERIPHERAL EC COUNTRIES THAT LASTED UNTIL JUNE WHEN DANISH CITIZENS REJECTED THE MAASTRICHT TREATY ON CLOSER EC TIES AND PUT THE WHOLE CONCEPT OF MONETARY UNION AND THE STRICT ECONOMIC DISCIPLINE IT REQUIRES IN SERIOUS DOUBT BUT NOW AS THE DANGER OF AN IMMEDIATE COLLAPSE OF THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM RECEDES AND AS IT LOOKS MORE LIKELY THAT THE MAASTRICHT TREATY WILL EVENTUALLY BE PASSED BY ALL MEMBER STATES INVESTORS ARE REDISCOVERING THEIR OLD FRIEND THE CONVERGENCE THEORY IN BONDMARKET PRACTICE THE THEORY IS TAKEN TO MEAN THAT ULTIMATELY BONDS OF IDENTICAL MATURITIES ISSUED BY EC GOVERNMENTS WILL YIELD SIMILARLY WITH ONLY SMALL VARIATIONS TO ACCOUNT FOR CREDIT RATINGS CURRENTLY THE DIFFERENCES IN YIELDS ARE ENORMOUS AT THE ONE EXTREME ITALIAN BONDS ARE YIELDING NEARLY 1340 WHILE AT THE OTHER GERMAN BONDS YIELD BARELY 7 THE NEARLY 6 1/2PERCENTAGEPOINT GAP REFLECTS NUMEROUS DIFFERENCES BETWEEN THE COUNTRIES PARTICULARLY THE FARGREATER CONFIDENCE INVESTORS HAVE IN THE FISCAL RECTITUDE AND POLITICAL STABILITY OF GERMANY VERSUS ITALY ANOTHER FACTOR IS THE INFLATION OUTLOOK MOST ECONOMISTS EXPECT INFLATION IN GERMANY OVER THE NEXT 12 MONTHS TO BE AROUND 350 ABOUT TWO PERCENTAGE POINTS LESS THAN ITALY'S ALSO THE GAP IN YIELDS IS PARTLY EXPLAINED BY INVESTOR FEARS ABOUT THE STAYING POWER OF THE ITALIAN LIRA WHICH CERTAINLY HAS A MORE DUBIOUS RECORD THAN THE MARK BUT YIELDS IN COUNTRIES SUCH AS ITALY SPAIN AND DENMARK ARE FALLING AGAIN MORE IMPORTANTLY THE YIELD SPREAD THE DIFFERENCE BETWEEN BOND YIELDS IN THESE COUNTRIES AND IN GERMANY IS NARROWING THE PHENOMENON IS EXPLAINED PARTLY BY THE GROWING CONCERN OVER THE GERMAN ECONOMY AND ITS POSSIBLE IMPACT ON GERMANY'S POLITICAL STABILITY ALISON COTTRELL INTERNATIONAL ECONOMIST AT MIDLAND GLOBAL MARKETS IN LONDON BELIEVES THAT AS GERMANY'S 1994 ELECTIONS APPROACH THERE IS A SERIOUS RISK THAT THE CHRISTIAN DEMOCRATS AND SOCIAL DEMOCRATS WILL COMPETE ON LAVISH SPENDING TO WIN OVER VOTERS THAT WOULD FURTHER INFLATE THE ALREADY WORRISOME BUDGET DEFICIT AND STRAIN THE BOND MARKET WITH EVEN MORE GOVERNMENTDEBT ISSUANCE ESSENTIALLY THE BOND MARKET IS TAKING MORE SERIOUSLY THE SORT OF NEGATIVE BACKGROUND FEARS THAT HAVE BEEN AROUND FOR SOME TIME SAYS MALCOLM ROBERTS HEAD OF FIXEDINCOME RESEARCH AT UBS PHILLIPS & DREW IN LONDON AS A RESULT THE PRESSURE IS COMING OFF OTHER EUROPEAN CURRENCIES THE ERM IS NOT THE ZONE OF TURBULENCE THAT IT HAS BEEN OTHERS BELIEVE THAT THE MARKET IN GERMAN BUNDS GOT CARRIED AWAY IN ANTICIPATING INTERESTRATE CUTS BY THE BUNDESBANK MORE THAN ONE STEP OF MONETARY EASING IS IN THE CURRENT PRICES ALREADY SAYS ALWIN SCHENK AN ANALYST AT SAL OPPENHEIM JR & CIE IN COLOGNE PEOPLE ARE JUST TOO OPTIMISTIC ABOUT DEUTSCHE MARK BONDS ONE OF THE FIRST MARKETS TO BENEFIT OF THE CHANGING PERCEPTION HAS BEEN IN FRENCH GOVERNMENT DEBT SINCE THE FIRST OF THE YEAR FRENCH BONDS CALLED OATS HAVE GONE FROM YIELDING 096 PERCENTAGE POINT ABOVE GERMAN BONDS TO 075 POINT ABOVE MOST ANALYSTS THINK THERE IS PLENTY OF SCOPE FOR THAT GAP TO NARROW OVER THE COMING 12 MONTHS TO AS LOW AS 020 PERCENTAGE POINT BUT PROBABLY NOT UNTIL APRIL ONCE FRENCH PARLIAMENTARY ELECTIONS ARE OUT OF THE WAY THERE ARE WORRIES THAT A POSSIBLE COHABITATION GOVERNMENT INVOLVING A CENTERRIGHT COALITION CABINET AND SOCIALIST PRESIDENT FRANCOIS MITTERRAND COULD RESULT IN A DEVALUATION OF THE FRANC DIMINISHED FISCAL PROBITY OR BOTH NEXT IN LINE FOR GAINS APPEARS TO BE THE ITALIAN MARKET KIRIT SHAH HEAD OF MARKET STRATEGY AT SUMITOMO FINANCE INTERNATIONAL IN LONDON THINKS THE RISK OF FURTHER DECLINES IN THE LIRA'S VALUE HAS DIMINISHED SIGNIFICANTLY INDEED THE ITALIAN CURRENCY HAS FALLEN NEARLY 20 AGAINST THE MARK SINCE IT WAS REMOVED FROM THE ERM IN SEPTEMBER NOW THE SPECULATION CENTERS ON WHEN THE LIRA MIGHT REENTER THE ERM WHICH WOULD BE A STRONG BOOST FOR INTERNATIONAL CONFIDENCE IN THE ITALIAN BOND MARKET ALSO DOUBTS ABOUT ITALY'S POLITICAL SYSTEM HAVE FALLEN SOMEWHAT AS WELL OVER THE PAST MONTH AS THE GOVERNMENT MAKES MODEST ADVANCES ON REDUCING THE BUDGET DEFICIT THE CASE FOR SPAIN ISN'T QUITE AS STRONG AS IT IS FOR ITALY LARGELY BECAUSE GENERAL ELECTIONS ARE DUE TO BE HELD BY OCTOBER WHICH COULD SIGNIFICANTLY ALTER THE GOVERNMENT IN MADRID AS OF NOW IT SEEMS LIKELY THE GOVERNING SOCIALIST PARTY WILL HAVE TO FORGE SOME SORT OF COALITION POSSIBLY WITH REGIONAL PARTIES NEVERTHELESS SPANISH POLICY MAKERS APPEAR CONFIDENT IN THE STRENGTH OF THE PESETA AND IN THE INFLATION OUTLOOK THE BANK OF SPAIN CUT ITS BENCHMARK INTEREST RATE HALF A POINT TO 1325 FRIDAY AND THE BOND MARKET RESPONDED WITH FURTHER GAINS NEVERTHELESS THERE ARE RISKS TO JUMPING BACK INTO THE CONVERGENCE GAME STEPHEN LEWIS RESEARCH DIRECTOR AT THE LONDON BOND BROKING CO ISSUED AT HIGH YIELD CAUTION IN A REPORT THIS WEEK HE THINKS THE BUNDESBANK IS NOT EASING RATES QUICKLY ENOUGH TO TAKE THE ERM COMPLETELY OUT OF THE DANGER ZONE ADDING THAT THE IRISH PUNT LOOKS MORE VULNERABLE NOW THAT THE BRITISH POUND IS SLIPPING AGAIN AGAINST THE MARK THAT IS BECAUSE BRITAIN IS IRELAND'S LARGEST TRADING PARTNER AND EACH DECLINE IN STERLING BOOSTS THE COST OF IRISH EXPORTS THUS REDUCING THE COMPETITIVENESS MR LEWIS ALSO BELIEVES THAT THE EVERWIDENING FISCAL DEFICITS OF MOST EC GOVERNMENT WILL BECOME A FRESH SOURCE OF ERM TENSION SUCH DEFICITS COULD RAISE QUESTIONS ABOUT THE INAPPROPRIATENESS OF THE EC'S CURRENT INTERESTRATE STRUCTURE WHICH CONTINUES TO BE DICTATED LARGELY BY THE BUNDESBANK 9301250034 930125 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR ECONOMIC GROWTH APPARENTLY SLOWED IN THE FOURTH QUARTER BUT THE PERFORMANCE WAS STILL PROBABLY STRONG ENOUGH TO PUSH OUTPUT IN 1992 TO ITS BIGGEST GAIN IN FIVE YEARS GOVERNMENT REPORTS RELEASED AT THE END OF THE YEAR SUGGEST THE ECONOMY AS MEASURED BY GROSS DOMESTIC PRODUCT GREW AT A SLOWER PACE THAN THE 34 ANNUAL RATE OF THE THIRD QUARTER SAID JAMES O'SULLIVAN AN ECONOMIST AT JP MORGAN WHILE MANY ECONOMISTS LOOK FOR A 3 RATE IN THE FOURTH PERIOD MR O'SULLIVAN PUTS THE FIGURE AT 25 SUGGESTING AN ECONOMY THAT WASN'T BUILDING UPWARD MOMENTUM AS THE YEAR ENDED OPPOSITE THE TONE OF PREVIOUS REPORTS THE DECEMBER RETAIL SALES REPORT FOR EXAMPLE INCLUDED A LARGE DOWNWARD REVISION TO NOVEMBER SALES INDICATING A BUYING BINGE THAT PEAKED IN OCTOBER AND MAY HAVE EASED SINCE THEN HE SAID CONSUMERS MAY HAVE OVEREXTENDED THEMSELVES MR O'SULLIVAN ADDED NONETHELESS FOURTHQUARTER GROWTH OF 25 WOULD PUSH THE RISE IN GDP FOR THE YEAR TO 26 THE HIGHEST SINCE 1988 WHEN IT WAS 39 WE'RE ON A DEFINITE TREND TOWARD IMPROVEMENT HE SAID THE ECONOMY WILL PROBABLY GROW AT A 2 TO 25 PACE DURING THE FIRST HALF OF THIS YEAR AND START RATCHETING UP IN THE SECOND HALF MR O'SULLIVAN SAID 9301250033 930125 ENTERPRISE FIRMS FIND PROFITS SEARCHING DATABASES BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL AFTER BEING LAID OFF LAST YEAR FROM A COMPUTER DATABASE COMPANY CYNTHIA SCHOENBRUN USED HER PERSONAL COMPUTER TO LINK UP WITH SOME FRIENDS IN RUSSIA AND ENTER A BURGEONING ENTREPRENEURIAL FIELD MS SCHOENBRUN WHO HAD WORKED AS A RESEARCH ADMINISTRATOR BECAME AN INFORMATION BROKER NOW SHE TAPS COMPUTER DATABASES AND HER NETWORK OF CONTACTS TO DIG UP BUSINESS AND INVESTMENT INFORMATION ABOUT RUSSIA AND OTHER FORMER SOVIET REPUBLICS CASTLE INFORMATION HER ONEPERSON COMPANY IS BARELY BREAKING EVEN BUT SHE HAS HIGH HOPES IN RECENT YEARS THOUSANDS OF WOULDBE ENTREPRENEURS HAVE OPENED SHOP AS INFORMATION BROKERS LIKE MANY OTHERS ENTERING COMPUTERBASED FIELDS THEY ARE FINDING THAT TECHNOLOGY OFFERS THEM A CHANCE TO OWN A BUSINESS WITHOUT INVESTING A LOT OF CAPITAL AMONG OTHER ADVANTAGES INFORMATION BROKERAGE GIVES PEOPLE CONSIDERABLE FREEDOM TO SET THEIR HOURS PART LIBRARIAN PART PRIVATE EYE AND PART COMPUTER NERD AN INFORMATION BROKER SEARCHES FOR EVERYTHING WRITTEN AND PUBLISHED ON A GIVEN SUBJECT BE IT AN OBSCURE CORNER OF THE BIOMEDICAL MARKET OR THE WHEREABOUTS OF A GERMAN ENGINEERING EXPERT THERE MAY NOW BE SEVERAL THOUSAND INFORMATION BROKERS AROUND THE US AS MUCH AS A TENFOLD INCREASE FROM A DECADE AGO INDUSTRYWATCHERS ESTIMATE THERE HAS BEEN EXPONENTIAL GROWTH SAYS JANET GOTKIN PRESIDENT OF THE ASSOCIATION OF INDEPENDENT INFORMATION PROFESSIONALS A TRADE GROUP OF INFORMATION BROKERS WHOSE MEMBERSHIP HAS GROWN TO NEARLY 500 FROM 26 IN 1987 MS GOTKIN COOWNER OF INFOLINK AN INFORMATION BROKERAGE CONCERN IN MONTROSE NY SAYS THE VAST MAJORITY OF SUCH FIRMS ARE ONEPERSON OR TWOPERSON COMPANIES THOUGH A FEW ARE MUCH BIGGER INFORMATION BROKERS PROMOTE THEIR ABILITY TO MANIPULATE THE VAST AND RAPIDLY EXPANDING UNIVERSE OF COMPUTERIZED INFORMATION FASTER MORE EFFECTIVELY AND LESS EXPENSIVELY THAN CLIENTS COULD DO ALONE WHEN AMERICAN TELEPHONE & TELEGRAPH CO NEEDS INFORMATION OUTSIDE ITS CORE BUSINESS AREAS IT SOMETIMES TURNS TO COOPER HELLER INC AN INFORMATION BROKERAGE CONCERN IN PHILADELPHIA AT&T RECENTLY USED COOPER HELLER TO CHECK OUT OTHER CORPORATIONS' PUBLICRELATIONS ACTIVITIES AS A WAY TO BENCHMARK ITS OWN EFFORTS SAYS JEANMARIE KANTOR AN AT&T PUBLIC RELATIONS MANAGER BECAUSE COOPER HELLER SEARCHES THROUGH CERTAIN ELECTRONIC DATABASES REGULARLY IT HAS CAPABILITIES OUR INTERNAL RESEARCH CENTER CAN'T MATCH MS KANTOR SAYS OTHER CORPORATE CLIENTS SAY INFORMATION BROKERS SAVE THEM MONEY WITH SOME DATABASES CHARGING 150 OR MORE AN HOUR YOU NEED SOMEBODY WHO CAN USE THE KEYBOARD QUICKLY SAYS HARRY ROEMISCH OWNER OF REDTEAM INC A CONSULTING CONCERN IN CEDAR MOUNTAIN NC HE SAYS REDTEAM REGULARLY USES INFORMATION BROKERS TO ASSIST CLIENTS ON A NUMBER OF BUSINESS TOPICS INFORMATION BROKERS FIRST BEGAN TO APPEAR IN THE EARLY 1970S WHEN THEY HAD TO SPEND LONG HOURS COMBING THROUGH LIBRARIES BUT WITH THE EMERGENCE OF THE PERSONAL COMPUTER AND SEVERAL THOUSAND DATABASES WORLDWIDE PEOPLE COULD SUDDENLY LET ELECTRONS DO THEIR SEARCHING YOU CAN COVER A LOT MORE GROUND A LOT QUICKER IF YOU ARE A GOOD SEARCHER SAYS ANDREW P GARVIN PRESIDENT OF NEW YORKBASED FIND/SVP THE BIGGEST US INFORMATION BROKERAGE CONCERN AND THE ONLY PUBLICLY TRADED ONE FIND/SVP IS A LICENSEE OF SVP AN INFORMATIONRETRIEVAL CONCERN IN FRANCE THE NEW YORKBASED COMPANY'S 1992 REVENUE WAS ABOUT 185 MILLION MR GARVIN SAYS THE WAVE OF CORPORATE DOWNSIZINGS HAS ALSO HELPED SWELL THE RANKS OF INFORMATION BROKERS THOUSANDS OF LAIDOFF PROFESSIONALS ARE COMPUTERLITERATE AND INFORMATION BROKERING LETS THEM USE THOSE SKILLS DEREK PUGSLEY OF TORONTO SAYS HE STARTED INQUIX CONSULTING LTD AN INFORMATION BROKERAGE FIRM AFTER HE WAS LAID OFF IN 1989 IN HIS PREVIOUS JOB HE DID ACQUISITION AND STRATEGIC PLANNING WORK FOR A LOCAL SECURITY COMPANY RATHER THAN DIG UP ANOTHER JOB WITH THE RECESSION STARTING THIS SEEMED A MORE PROFITABLE WAY TO GO MR PUGSLEY SAYS AFTER A YEAR OF NEGATIVE CASH FLOW MR PUGSLEY SAYS HIS ONEMAN CONCERN IS DOING QUITE WELL WITH 40 TO 50 REGULAR CLIENTS FOR ONE RECENT PROJECT HE CONDUCTED A DATABASE SURVEY OF THE CONDOM MARKET FOR A CANADIAN COMPANY THAT WANTED TO ENTER THE CONDOM INDUSTRY THERE ANOTHER CLIENT SOUGHT INFORMATION ABOUT POSSIBLE COMPETITORS IN AN ELECTRONICS TECHNOLOGY THAT THE COMPANY WANTED TO PURSUE A DATABASE SEARCH DISCLOSED THAT SEVERAL COMPANIES THAT HIS CLIENT HADN'T KNOWN ABOUT WERE WORKING IN THE AREA MR PUGSLEY SAYS THE INFORMATION MADE THE CLIENT BETTER PREPARED TO ENTER THE MARKET HE SAYS FOR ENTREPRENEURS AN OBVIOUS ATTRACTION OF INFORMATION BROKERING IS THAT IT REQUIRES LITTLE MORE THAN A TELEPHONE A PERSONAL COMPUTER AND SOME COMPUTER TRAINING IT CAN BE DONE PARTTIME FROM HOME REVA BASCH HAS CLIENTS FROM AUSTRALIA TO BRITAIN EVEN THOUGH SHE RUNS HER AUBERGINE INFORMATION SERVICES FROM HER BERKELEY CALIF HOME I'M GEOGRAPHICALLY INDEPENDENT SHE SAYS BUT EASY ENTRY DOESN'T MEAN EASY STREET ABOUT 40 OF ALL INFORMATION BROKERAGE FIRMS CLOSE SHOP WITHIN TWO YEARS SAYS SUE RUGGE A VETERAN INFORMATION BROKER AND PART OWNER OF RUGGE GROUP IN OAKLAND CALIF PEOPLE DON'T REALIZE IT TAKES MORE THAN RESEARCH SKILLS IT ALSO TAKES MARKETING BUSINESS MANAGEMENT AND COSTCONTROL SKILLS SHE SAYS UNFORTUNATELY INFORMATION BROKERS ALSO LACK RESEARCH SKILLS AT TIMES SOME CUSTOMERS SAY A LOT OF PEOPLE IN THIS BUSINESS DROP THE BALL BECAUSE THEY DON'T KNOW HOW TO SEARCH DATABASES PROPERLY SAYS MR ROEMISCH THE CONSULTANT SPECIALIZATION HELPS INFORMATION BROKERS SAY MANY BECOME PROFICIENT IN SEARCHING AN AREA OF INTEREST OR PRIOR EXPERTISE WHEN A CLIENT WANTS A SEARCH OUTSIDE THAT AREA AN INFORMATION BROKER OFTEN GIVES THE ASSIGNMENT TO SOMEONE WHO IS MORE QUALIFIED TO DIFFERENTIATE THEMSELVES MANY INFORMATION BROKERS ARE BRANCHING OUT BEYOND COMPUTER SEARCHES SOME LOCATE INDIVIDUALS OTHERS FIND AND DELIVER DOCUMENTS DO CONSUMER SURVEYS OR TRACK DOWN HARDTOFIND ITEMS SUCH AS OUTOFPRINT BOOKS EILEEN LIZER AN INFORMATION BROKER WHO OWNS STRAIGHT TO THE SOURCE IN BEVERLY HILLS CALIF IS DIFFERENTIATING HERSELF BY DEVISING A NEW NAME FOR WHAT SHE DOES SHE CLAIMS TO BE THE WORLD'S FIRST AND ONLY FINDOLOGIST AND HAS EVEN SOUGHT A TRADEMARK FOR THE TERM SHE MAY HAVE A CASE A COMPUTER DATABASE SEARCH COULDN'T FIND ANY OTHER FINDOLOGISTS IN THE US 9301250032 930125 CLINTON REVERSES SEVERAL POLICIES OF REAGAN BUSH ABORTION RIGHTS STRICTURES QUAYLE PANEL ABOLISHED NEW RULES ARE REVIEWED BY BOB DAVIS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH A FLURRY OF EXECUTIVE ORDERS PRESIDENT CLINTON CALLED BACK FOR REVIEW A SLEW OF REGULATIONS AWAITING PUBLICATION AND HE ABOLISHED OTHER RULES THAT RESTRICTED ABORTION RIGHTS THE MOVES CLEARLY WERE MEANT TO SHOW A BREAK WITH THE PAST 12 YEARS OF REPUBLICAN CONTROL OF THE WHITE HOUSE AND TO FULFILL A NUMBER OF HIGHLY PUBLICIZED CAMPAIGN PROMISES IN QUICK ORDER MR CLINTON DID AWAY WITH FORMER VICE PRESIDENT QUAYLE'S COMPETITIVENESS COUNCIL WHICH THE NEW PRESIDENT HAD CRITICIZED DURING THE CAMPAIGN AS A BACKDOOR CHANNEL FOR BIG BUSINESS TO SIDESTEP ENVIRONMENTAL REGULATIONS MR CLINTON ALSO OVERTURNED GOVERNMENT BANS ON ABORTION COUNSELING AT FEDERALLY FINANCED CLINICS ABORTIONS AT MILITARY HOSPITALS FEDERALLY FINANCED RESEARCH USING FETAL TISSUE AND US FUNDING OF OVERSEAS FAMILYPLANNING PROGRAMS THAT INCLUDED ABORTION COUNSELING HE ALSO DIRECTED SECRETARY OF HEALTH AND HUMAN SERVICES DONNA SHALALA TO REVIEW THE PROHIBITION ON THE PRIVATE IMPORTATION OF RU486 THE SOCALLED FRENCH ABORTION PILL RU486 INDUCES ABORTIONS EARLY IN PREGNANCY THE FOOD AND DRUG ADMINISTRATION HASN'T APPROVED THE DRUG FOR SALE IN THE US BUT IF THE IMPORT BAN WERE LIFTED INDIVIDUALS COULD BRING IT INTO THE COUNTRY FOR PERSONAL USE AFTER BUYING IT OVERSEAS REMOVING THE IMPORT BAN ALSO MIGHT ENCOURAGE THE DRUG'S MANUFACTURER ROUSSELUCLAF A FRENCH UNIT OF THE GERMAN COMPANY HOECHST AG TO SEEK FDA APPROVAL TO MARKET IT IN THE US THE COMPANY HASN'T SOUGHT APPROVAL IN THE PAST BECAUSE IT VIEWED THE US AS HOSTILE IT ISN'T CLEAR WHETHER ENDING THE IMPORT BAN ALONE WOULD CHANGE THAT VIEW THOUGH MR CLINTON'S ACTIONS ON THE REGULATORY FRONT REQUIRE HIS CABINET OFFICERS OR THEIR AIDES TO REVIEW VARIOUS RULES AND PROPOSALS THAT WERE APPROVED IN THE LAST WEEKS OF THE BUSH ADMINISTRATION BUT HAVEN'T YET BEEN PUBLISHED IN THE FEDERAL REGISTER THE WHITE HOUSE COULDN'T PROVIDE A LIST OF THE RULES TO BE REEXAMINED A NUMBER OF LASTMINUTE REGULATIONS BY THE ENVIRONMENTAL PROTECTION AGENCY ARE KNOWN TO BE INVOLVED ADMINISTRATION OFFICIALS SAID THAT RULES FACING STATUTORY OR JUDICIAL DEADLINE WON'T BE DELAYED THOUGH CLINTON REGULATORY OFFICIALS SAID THE REVIEW WOULD ENABLE THE NEW ADMINISTRATION TO PUT ITS STAMP ON THE GOVERNMENT QUICKLY MEANWHILE VICE PRESIDENT ALBERT GORE'S STAFF WAS WORKING ON PROPOSALS TO REPLACE THE COMPETITIVENESS COUNCIL WITH A DIFFERENT PROCESS FOR WHITE HOUSE REVIEW OF REGULATIONS NO LONGER WILL SPECIAL INTERESTS RECEIVE SPECIAL FAVORS SAID MR GORE IN A STATEMENT NO LONGER WILL OUR LAWS BE IGNORED OR UNDERMINED BUT THE VICE PRESIDENT'S ADVISERS ARE WRESTLING WITH THE SAME FUNDAMENTAL QUESTION THAT BEDEVILED THE COMPETITIVENESS COUNCIL HOW OPEN SHOULD WHITE HOUSE REVIEW BE TO THE PUBLIC AND CONGRESS SENATE GOVERNMENT AFFAIRS CHAIRMAN JOHN GLENN D OHIO IS PRESSING THE WHITE HOUSE TO KEEP DETAILED RECORDS OF TELEPHONE CALLS MEETINGS AND CORRESPONDENCE CONCERNING REGULATIONS AND MAKE THEM PUBLIC BUT SOME REGULATORY EXPERTS SAY THAT SUCH DISCLOSURES WOULD HINDER THE WHITE HOUSE'S ABILITY TO HOLD FRANK DISCUSSIONS OF REGULATIONS IRONICALLY REGULATORY ADVISERS TO VICE PRESIDENT GORE ARE CONSULTING FORMER STAFFERS OF THE COMPETITIVENESS COUNCIL WHICH AS A SENATOR AND VICE PRESIDENTIAL CANDIDATE MR GORE REGULARLY LAMBASTED THE COMPETITIVENESS COUNCIL STAFFERS HAVE NOW SET UP SHOP AT CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE ADVOCACY GROUP THAT HAS URGED THE CLINTON ADMINISTRATION TO IMPLEMENT A REGULATORY POLICY THAT ELIMINATES UNDULY BURDENSOME AND UNNECESSARY REGULATIONS ABORTIONRIGHTS ADVOCATES REJOICED AT THE LIFTING OF THE ABORTION RESTRICTIONS THE NEW PRESIDENT'S REVERSAL OF THESE LONGSTANDING REAGANBUSH POLICIES BRINGS TO AN END AN ERA OF WILLFUL DISREGARD OF WOMEN'S RIGHTS AND GLOBAL NEEDS SAID SHARON CAMP SENIOR VICE PRESIDENT OF POPULATION ACTION INTERNATIONAL I THINK THAT THE WHOLE LIST PROVIDES A POWERFUL SIGNAL THAT THEY'RE REALLY CHANGING COURSE AND THAT THE HEALTH CARE NEEDS AND REPRODUCTIVE RIGHTS OF WOMEN ARE NO LONGER GOING BE HELD HOSTAGE TO A RIGHT WING POLITICAL AGENDA SAID ESTELLE ROGERS PUBLIC POLICY DIRECTOR OF THE AMERICAN CIVIL LIBERTIES UNION REPRODUCTIVE FREEDOM PROJECT BUT ABORTION OPPONENTS WHO FIND THEMSELVES WITH AN ENEMY IN THE WHITE HOUSE FOR THE FIRST TIME IN 12 YEARS WERE BITTER THE EFFECT OF CLINTON'S ACTION IS FOR THE FEDERAL GOVERNMENT TO BE PROMOTING ABORTION AS A ROUTINE METHOD OF BIRTH CONTROL BOTH AT HOME AND OVERSEAS SAID DOUGLAS JOHNSON LEGISLATIVE DIRECTOR OF THE NATIONAL RIGHT TO LIFE COMMITTEE 9301250031 930125 WHO'S NEWS ONEOK INC ONEOK INC TULSA OKLA LARRY W BRUMMETT WAS NAMED EXECUTIVE VICE PRESIDENT OF THIS ENERGY COMPANY MR BRUMMETT 42 YEARS OLD WAS EXECUTIVE VICE PRESIDENT OF OKLAHOMA NATURAL GAS CO A UNIT OF ONEOK 9301250030 930125 BUSINESS BRIEF BOEING CO COMPANY GETS 5YEAR JOB TO UPGRADE NATO FLEET BOEING CO SEATTLE SAID ITS DEFENSE AND SPACE GROUP RECEIVED A 2946 MILLION FIVEYEAR CONTRACT TO UPGRADE THE NORTH ATLANTIC TREATY ORGANIZATION'S FLEET OF AIRBORNE WARNING AND CONTROL SYSTEM AIRCRAFT THE CONTRACT AWARDED BY THE NATO AIRBORNE EARLY WARNING & CONTROL PROGRAMME MANAGEMENT ORGANIZATION BASED IN BRUNSSUM NETHERLANDS CALLS FOR BOEING TO OVERSEE THE PRODUCTION AND DESIGN OF VARIOUS SYSTEM ENHANCEMENTS THE IMPROVEMENTS INCLUDE COLOR DISPLAYS TO EASE PROCESSING OF INCOMING INFORMATION AND NEW ANTIJAMMING DEVICES THE E3 AWACS SYSTEM CAN TRACK MULTIPLE LAND AND SEA TARGETS SIMULTANEOUSLY THEN COMMUNICATE THOSE TARGETS' WHEREABOUTS BACK TO LAND OR SEA COMMAND POSTS UNDER THE CONTRACT THE SEATTLE AEROSPACE COMPANY WILL IMMEDIATELY BEGIN RETROFITTING TWO AWACS AIRCRAFT WITH THE NEW TECHNOLOGY ANOTHER 16 PLANES WILL BE RETROFITTED UNDER A CONTRACT THAT BOEING WILL BE AWARDED LATER THIS YEAR THE COMPANY SAID 9301250029 930125 ETHAN ALLEN PLANS RECAPITALIZATION IN BID TO CUT DEBT BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL DANBURY CONN ETHAN ALLEN INTERIORS INC WHICH HAS SPENT RECENT YEARS MOVING ITS EARLY AMERICAN FURNITURE IMAGE INTO THE 20TH CENTURY IS SEEKING TO UPDATE ITS BALANCE SHEET AS WELL THE FURNITURE MAKER AND RETAILER FILED FOR A PROPOSED INITIAL PUBLIC OFFERING OF 73 MILLION SHARES SEEKING TO RAISE ABOUT 125 MILLION AS PART OF A RECAPITALIZATION PLAN THAT WOULD ROUGHLY HALVE ITS LONGTERM DEBT OF 318 MILLION THE COMPANY BECAME HIGHLY LEVERAGED WHEN A MANAGEMENT GROUP ACQUIRED IT FOR 338 MILLION FROM INTERCO INC IN 1989 INTERCO A ST LOUIS FOOTWEAR AND FURNITURE COMPANY FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN EARLY 1991 AFTER A RECAPITALIZATION PLAN INTENDED TO THWART A HOSTILE TAKEOVER BID FAILED ETHAN ALLEN WAS SOLD AS PART OF THAT RESTRUCTURING ETHAN ALLEN OWNS 43 GALLERIES IN NORTH AMERICA WHILE INDEPENDENT DEALERS OPERATE 216 OTHERS AND 16 ARE LOCATED OVERSEAS IT RANKS AS ONE OF THE NATION'S LARGEST FURNITURE RETAILERS WITH SALES IN ITS LAST FISCAL YEAR OF 351 MILLION THE RECAPITALIZATION PLAN BESIDES THE STOCK OFFERING WOULD INCLUDE THE SALE OF 75 MILLION OF NEW SENIOR NOTES IT ALSO CALLS FOR THE PURCHASE BY THE HOLDERS OF ETHAN ALLEN'S 222 MILLION 1817 NOTES OF 55 MILLION OF 65 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK AND COMMON SHARES WORTH ABOUT 15 MILLION BASED ON AN ASSUMED 17 A SHARE PRICE FOR THE IPO THE COMPANY SAID UNDER THE PLAN THE 222 MILLION OF 1817 NOTES WILL BE REPAID AS WELL AS MORE THAN 100 MILLION OF TERM AND REVOLVING CREDIT LOANS KIDDER PEABODY & CO IS THE LEAD UNDERWRITER THE FILING FOR THE STOCK OFFERING ESTIMATED THAT THE SHARES WOULD BE SOLD FOR 16 TO 18 EACH WHICH WOULD VALUE THE COMPANY'S COMMON STOCK AT ABOUT 200 MILLION AFTER THE OFFERING ETHAN ALLEN MANAGEMENT EMPLOYEES RETAILERS AND OTHER INVESTORS STILL WOULD CONTROL ABOUT 52 OF THE COMPANY THE COMPANY'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE IS M FAROOQ KATHWARI A FORMER EXECUTIVE OF NEW COURT SECURITIES CORP NOW ROTHSCHILD INC WHO JOINED ETHAN ALLEN IN 1980 UPON THE MERGER OF HIS COMPANY A MAKER OF DECORATIVE PRODUCTS WITH ETHAN ALLEN THE COMPANY HAS BEEN TRYING TO APPEAL TO MORE CONTEMPORARYMINDED CUSTOMERS A SPOKESWOMAN SAYS IN THE LAST FISCAL YEAR FOR INSTANCE IT INTRODUCED FURNITURE COLLECTIONS INSPIRED BY SHAKER AND MISSION STYLES WHICH HAVE BECOME THE SECONDRANKED AND FOURTHRANKED BESTSELLERS AMONG THE COMPANY'S LINES ETHAN ALLEN SAID THE DREXEL HERITAGE AND THOMASVILLE LINES ARE AMONG ITS MAIN COMPETITORS ETHAN ALLEN MAKES OR ASSEMBLES ABOUT 91 OF ITS PRODUCTS AND OPERATES 22 FACTORIES NINE DISTRIBUTION WAREHOUSES AND EIGHT HOME DELIVERY CENTERS ETHAN ALLEN ESTIMATES THE RECAPITALIZATION AND STOCK OFFERING WOULD HAVE REDUCED ITS LOSS FOR THE FISCAL YEAR ENDED JUNE 30 1992 TO 37 MILLION OR 31 CENTS A SHARE ON A PRO FORMA BASIS FROM THE REPORTED 288 MILLION OR 1938 A SHARE IT HAS HAD SUBSTANTIAL LOSSES IN EACH OF THE PAST THREE YEARS PARTLY AS A RESULT OF HEAVY INTEREST EXPENSES 9301250028 930125 BUSINESS BRIEF EVEREST MEDICAL CORP COMPANY EXPECTS TO POST WIDENED 4THQUARTER LOSS EVEREST MEDICAL CORP SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF 1221000 COMPARED WITH A LOSS OF 879000 IN THE YEAR EARLIER PERIOD PERSHARE ESTIMATES WEREN'T AVAILABLE THE COMPANY SAID FINAL FIGURES WILL BE RELEASED IN MIDFEBRUARY THE MINNEAPOLISBASED MEDICAL PRODUCTS MAKER SAID ITS YEAREND CASH AND SHORTTERM INVESTMENTS AMOUNTED TO 726196 AS A RESULT EVEREST SAID IT MUST SECURE ADDITIONAL DEBT OR EQUITY FINANCING TO CONTINUE OPERATING IT IS CURRENTLY SEEKING SUCH FINANCING BUT SAID THERE CAN BE NO ASSURANCE THE COMPANY WILL BE SUCCESSFUL THE COMPANY SAID FOURTHQUARTER EXPENSES WERE HIGHER THAN ESTIMATED DUE TO A SIGNIFICANT WRITEDOWN OF OBSOLETE INVENTORY MANUFACTURING STARTUP COSTS AND REDUCED INITIAL PRODUCTION YIELDS AND OTHER PRODUCTION DIFFICULTIES ESTIMATED SALES FOR THE FOURTH QUARTER WERE 729000 COMPARED WITH 506000 EVEREST ESTIMATED A YEAREND LOSS OF 3895000 ON SALES OF 2315000 COMPARED WITH A LOSS OF 3417000 ON SALES OF 1256000 IN 1991 9301250027 930125 BUSINESS BRIEF MAPCO INC ENERGY FIRM TAKING CHARGES TOTALING 69 CENTS A SHARE MAPCO INC SAID IT WILL TAKE FOUR SEPARATE FOURTHQUARTER CHARGES WHICH WILL REDUCE PROFIT 69 CENTS A SHARE IN THE YEARAGO QUARTER MAPCO EARNED 311 MILLION OR 104 A SHARE ON 7327 MILLION IN REVENUE THE TULSA OKLA ENERGY CONCERN WHICH HAS INTERESTS IN COAL NATURAL GAS AND PETROLEUM REFINERIES SAID A RECENT SETTLEMENT OF CLAIMS RELATED TO AN EXPLOSION AT A PIPELINE UNIT'S FACILITY WILL RESULT IN AN INSURANCE PREMIUM PENALTY OF 36 CENTS A SHARE MAPCO IS ALSO TAKING AN ACCOUNTING CHARGE OF 13 CENTS A SHARE TO COMPLY WITH A NEW FEDERAL LAW THAT REQUIRES LIFETIME RETIREE MEDICAL BENEFITS FOR CERTAIN COAL MINERS MAPCO SAID THAT COSTS ASSOCIATED WITH REALIGNING CERTAIN BUSINESSES AND DIVESTING ITSELF OF NONSTRATEGIC ASSETS WILL RESULT IN A CHARGE OF 12 CENTS A SHARE MAPCO ALSO SAID CHARGES RELATED TO VARIOUS ENVIRONMENTAL AND LITIGATION MATTERS WILL RESULT IN A CHARGE OF ABOUT EIGHT CENTS A SHARE 9301250026 930125 TECHNOLOGY BRIEF IDB COMMUNICATIONS GROUP INC FIRM AGREES TO BUY TRT FROM PACIFICORP'S UNIT IDB COMMUNICATIONS GROUP INC SAID IT AGREED WITH A UNIT OF PACIFICORP TO ACQUIRE TRT COMMUNICATIONS INC A PROVIDER OF INTERNATIONAL TELEPHONE PRIVATELEASED LINE AND TELEX SERVICES FOR 45 MILLION SHARES OF IDB COMMON STOCK AN INDICATED VALUE OF 1069 MILLION IDB IN LOS ANGELES SUPPLIES SATELLITE TRANSMISSION AND DISTRIBUTION SERVICES FOR THE RADIO AND TELEVISION INDUSTRIES ITS REVENUE LAST YEAR WAS 1044 MILLION IN 1992 TRT HAD REVENUE OF 108 MILLION UNDER ITS TWOTIERED STOCKFORSTOCK DEAL WITH PACIFICORP'S PACIFIC TELECOM INC SUBSIDIARY IDB WILL PAY 13 MILLION SHARES NOW AND THE REMAINDER AT CLOSING EXPECTED IN THE THIRD QUARTER OF THIS YEAR AFTER CLOSING PACIFIC TELECOM WILL BE ENTITLED TO ONE SEAT ON IDB'S BOARD THE TRANSACTION IS SUBJECT TO APPROVAL BY IDB'S SHAREHOLDERS THE FEDERAL COMMUNICATIONS COMMISSION AND OTHER REGULATORY BODIES ON FRIDAY IDB'S STOCK CLOSED AT 2375 A SHARE UP 175 IN OVERTHECOUNTER TRADING BEFORE THE ACQUISITION WAS ANNOUNCED 9301250025 930125 INTERNATIONAL WASHINGTON INSIGHT CUBA POSES TOUGH CHOICES FOR CLINTON AS SEEN IN RIFT OVER BAEZA NOMINATION BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF PRESIDENT CLINTON FOLLOWS THROUGH ON CAMPAIGN PROMISES TO HELP SPEED THE FALL OF FIDEL CASTRO HE'LL FACE A POLICY HEADACHE AND A DOMESTIC POLITICAL FIGHT FOR NOW WITH MR CASTRO STILL CLINGING TO POWER IN HAVANA CUBA ISN'T AT THE TOP OF MR CLINTON'S FOREIGNPOLICY CRISIS LIST BUT THE NEW PRESIDENT GOT A PREVIEW LAST WEEK OF THE POLITICAL PASSIONS INVOLVED IN CHARTING CUBA POLICY WHEN AN EARLY CHOICE FOR THE TOP LATIN AMERICA JOB AT THE STATE DEPARTMENT CUBANAMERICAN ATTORNEY MARIO BAEZA RAN AFOUL OF THE POWERFUL CUBANAMERICAN LOBBY THE LOBBY OPPOSED THE CHOICE BECAUSE MR BAEZA VISITED CUBA LAST YEAR TO TAKE PART IN A TRADE SEMINAR AND ATTENDED A RECEPTION HOSTED BY MR CASTRO IT ARGUES THAT AN UNSWERVING POLICY OF ISOLATING CUBA DIPLOMATICALLY AND ECONOMICALLY IS THE ONLY WAY TO LIBERATE THE ISLAND NATION THE NEW US PRESIDENT HAS A STRONG INCENTIVE TO TRY TO MANAGE CUBA'S TRANSITION TO DEMOCRACY THOUGH IF THE STRUGGLE AGAINST MR CASTRO TURNS VIOLENT THE US WILL HAVE TO DECIDE WHETHER TO SEND TROOPS EVEN A PEACEFUL CHANGE COULD SEND HUNDREDS OF THOUSANDS OF REFUGEES RACING FOR FLORIDA SHORES UNLESS THE POLITICAL AND ECONOMIC SITUATION ON THE ISLAND IS STABILIZED SWIFTLY BUT MR CLINTON HAS LITTLE POLITICAL ROOM TO MANEUVER DURING THE CAMPAIGN HE WON FINANCIAL BACKING IF NOT VOTES FROM FLORIDA'S WEALTHY AND EXTREMELY CONSERVATIVE CUBANAMERICAN COMMUNITY BY PLEDGING TO CONTINUE TO ISOLATE CUBA DIPLOMATICALLY AND TO TIGHTEN THE ECONOMIC EMBARGO ANY ATTEMPT BY WASHINGTON TO ENCOURAGE PEACEFUL CHANGE BY BROKERING DIALOGUE BETWEEN MR CASTRO AND HIS OPPONENTS OR BY OFFERING MR CASTRO EVEN MODEST INCENTIVES FOR IMPROVED BEHAVIOR WOULD BE TAKEN BY THE CUBANAMERICAN LOBBY AS A STAB IN THE BACK WHEN NEWS THAT THE ADMINISTRATION PLANNED TO NAME MR BAEZA LEAKED IT DREW PROTESTS FROM SEVERAL DEMOCRATIC CONGRESSMEN WITH CLOSE TIES TO THE LOBBY INCLUDING ROBERT TORRICELLI OF NEW JERSEY CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS WESTERN HEMISPHERE SUBCOMMITTEE WE JUST POINTED OUT THAT BAEZA'S VIEWS AND THE VIEWS OF THE PRESIDENT WEREN'T IN SYNCH SAYS LARRY MCDONNELL A SPOKESMAN FOR REP TORRICELLI CLINTON ASSOCIATES SAY THE CHOICE OF MR BAEZA WASN'T INTENDED TO SIGNAL A SHIFT IN US POLICY TOWARD CUBA AND THEIR FAILURE TO RUN THE NOMINATION BY MR TORRICELLI WAS CLEARLY IMPRUDENT BUT THE NOMINATION WHICH ISN'T YET FORMAL WON'T BE EASILY WITHDRAWN A RELATIVE UNKNOWN TO LATIN AMERICA POLICY HANDS IN WASHINGTON MR BAEZA IS A RESPECTED PARTNER AT THE WALL STREET LAW FIRM DEBEVOISE & PLIMPTON WHERE HE SPECIALIZES IN LATIN AMERICAN BUSINESS DEALS MR BAEZA ALSO IS BLACK AND HAS SOME PROMINENT POLITICAL BACKING THE CONGRESSIONAL BLACK CAUCUS FOR INSTANCE MAY JOIN THE FIGHT ON HIS BEHALF APPARENTLY THE CUBANS IN MIAMI ARE HOLDING HIS COLOR AGAINST HIM SAYS REP CHARLES RANGEL D NY WHO IS HOPING TO RALLY OTHER CAUCUS MEMBERS TO THE CAUSE MR BAEZA MEANWHILE HAS MOUNTED HIS OWN DEFENSE MEETING WITH CUBANAMERICAN DEMOCRATS IN WASHINGTON TO ASSURE THEM OF HIS UNWAVERING OPPOSITION TO FIDEL CASTRO IT'S A SLANDER TO SAY HE'S PROCASTRO IT'S AN ABSOLUTE OUTRAGE SAYS JAMES GOODALE A PARTNER AT MR BAEZA'S LAW FIRM HE SUPPORTS THE EMBARGO HE SUPPORTS ANTICASTRO LEGISLATION AS THE UNCERTAINTY OVER MR BAEZA'S NOMINATION DEMONSTRATES IT ISN'T CLEAR WHERE THE NEW ADMINISTRATION INTENDS TO TAKE CUBA POLICY DURING THE TRANSITION CLINTON AIDES EXPRESSED LITTLE INTEREST IN THE ISSUE QUIZZING THE STATE DEPARTMENT MAINLY ON HAITI TRADE WITH MEXICO AND TROUBLES IN VENEZUELA MOREOVER SECRETARY OF STATE WARREN CHRISTOPHER WATCHED AN EARLIER BOSS FORMER PRESIDENT JIMMY CARTER GET BURNED WHEN HE BEGAN A DIALOGUE WITH HAVANA ONLY TO HAVE MR CASTRO SEND THOUSANDS OF TROOPS TO ETHIOPIA AND MORE THAN 100000 REFUGEES TO SOUTH FLORIDA BUT THERE ARE ALSO SIGNS THAT THE NEW CLINTON TEAM MAY BE OPEN TO NEW IDEAS ON CUBA MR CLINTON HAS CHOSEN TWO MODERATES TO FILL OUT HIS LATIN AMERICA TEAM HE NAMED RICHARD FEINBERG PRESIDENT OF THE INTERAMERICAN DIALOGUE A PRIVATE POLICY GROUP TO THE NATIONAL SECURITY COUNCIL STAFF AND HARRIETT BABBITT A LAWYER AND HUMAN RIGHTS EXPERT AS AMBASSADOR TO THE ORGANIZATION OF AMERICAN STATES I DON'T THINK THESE CHOICES WERE MADE ON THE BASIS OF CUBA AND NEITHER IS EXPECTED TO ARGUE FOR MAKING PEACE WITH CASTRO SAYS PETER HAKIM A SENIOR FELLOW AT THE INTERAMERICAN DIALOGUE BUT THERE IS A STRONG OPINION IN THE LATIN AMERICA POLICY COMMUNITY THAT OUR APPROACH TO CUBA NEEDS TO BE REVISED THE CURRENT POLICY OF COMPLETE ISOLATION AND NEWLY TIGHTENED TRADE SANCTIONS MAKES CASTRO LOOK LIKE A VICTIM TO HIS OWN PEOPLE AND TO THE REST OF THE WORLD HE SAYS WHAT THE NEW ADMINISTRATION WANTS MOST IS SOME BREATHING SPACE ON CUBA IF MR CASTRO'S HEALTH HOLDS THEY MAY GET IT BUT THE FIGHT OVER MR BAEZA IS A HARBINGER OF EVEN TOUGHER FIGHTS TO COME 9301250023 930125 MARKETING & MEDIA ADVERTISING OGILVY & MATHER FACES REVIEW ON CHUNK OF ITS SEARS ACCOUNT BY KEVIN GOLDMAN WPP GROUP'S OGILVY & MATHER SURPRISED MANY ON MADISON AVENUE WHEN IT LOST THE COVETED AMERICAN EXPRESS CREDITCARD ACCOUNT ONLY TO REGAIN MOST OF IT THROUGH SAVVY AND DOGGED EFFORT NOW OGILVY FACES THE DAUNTING TASK OF PULLING OFF AN ENCORE THIS TIME A SIZABLE CHUNK OF ITS 200 MILLION SEARS ROEBUCK & CO ACCOUNT IS AT RISK AND IT IS ENTIRELY UNCLEAR WHETHER OGILVY CAN HOLD ON THE CHICAGOBASED RETAILING GIANT HAS PUT UP FOR REVIEW ALL APPAREL ADVERTISING THAT WORK HAS BEEN THE SOLE DOMAIN OF OGILVY AND COULD EASILY DOUBLE IN SIZE TO PERHAPS 50 MILLION IN BILLINGS THIS YEAR AD EXECUTIVES SAY SEARS'S MERCHANDISE GROUP WHICH ENCOMPASSES ITS STORES AND THE SEARS CATALOG PLANS A MAJOR PUSH FOR ITS APPAREL BUSINESS LATER THIS YEAR AND IT HAS RETAINED CONSULTANTS MORGAN ANDERSON & CO TO CONDUCT THE REVIEW AND RECOMMEND AN AGENCY BY MAY OGILVY & MATHER HAS A LOT RIDING ON THIS ASSIGNMENT FAILING TO RETAIN THE APPAREL CAMPAIGN COULD FORESHADOW FURTHER SEARS LOSSES FOR THE AGENCY OGILVY SET UP ITS CHICAGO OFFICE 16 YEARS AGO PRECISELY TO SERVE THE SEARS ACCOUNT AND MANY OF THE OFFICE'S APPROXIMATELY 200 EMPLOYEES WORK ON SEARS ADS THE OFFICE BILLED A HEALTHY 486 MILLION LAST YEAR BUT IF ANOTHER AGENCY CAN PRODUCE PROVOCATIVE APPAREL ADVERTISING IT MIGHT SOON SEEK OTHER SEGMENTS OF THE RETAILER'S VAST ADVERTISING NOT SURPRISINGLY OGILVY EXECUTIVES EXPRESS CONFIDENCE THEY CAN WIN THE REVIEW THIS IS A CHECK POINT FOR SEARS SAYS TOM HALL PRESIDENT AND CHIEF EXECUTIVE OF OGILVY'S CHICAGO OFFICE THEY'RE MAKING SURE THEY GET THE BEST CREATIVE AND STRATEGIC PLANNING THAT THEY POSSIBLY CAN THE AGENCY HAS HAD PART OF SEARS'S AD BUSINESS SINCE THE EARLY 1960S AND IT CURRENTLY HANDLES SPOTS FOR THE DIEHARD BATTERY BRAND CENTRAL STORES SEARS AUTOMOTIVE CENTERS CRAFTSMAN TOOLS AND THE RETAIL CHAIN ITSELF MATT HOWARD SEARS'S SENIOR VICE PRESIDENT OF MARKETING SAYS REASSURINGLY THAT WE HAVE NO PLANS TO REVIEW OTHER PIECES OF BUSINESS WE ARE PLEASED WITH THE WORK OGILVY & MATHER IS DOING FOR US THEN WHY DOESN'T SEARS JUST EXPAND THE APPAREL EFFORT UNDER THE OGILVY TEAM DOES THE NEW REVIEW INDICATE A CERTAIN LACK OF CONFIDENCE IN SEARS'S LONGTIME AGENCY IT IS A CLEAR VOTE OF CONFIDENCE THE SEARS EXECUTIVE COUNTERS CURTLY THAT WE DON'T PLAN TO PUT ANY OF THE OTHER BUSINESS IN REVIEW BUT ONE PROBLEM WITH SEARS ADVERTISING IS THAT WHILE IT IS HARMLESS AND WHOLESOME IT IS UNINSPIRED AND DOESN'T STAND OUT IN A CLUTTER OF RETAIL MERCHANDISE COMMERCIALS SAYS EDWARD A WELLER AN ANALYST WITH MONTGOMERY SECURITIES IN SAN FRANCISCO SEARS CONJURES UP MIDDLE AMERICA AND WHITE PICKET FENCES IT DOESN'T EVOKE YOUTH AND COOLNESS IN SHORT SEARS IS A FAR CRY FROM HIP MR HOWARD OF SEARS SAYS THAT ALTHOUGH IT HASN'T DECIDED ON A MARKETING STRATEGY FOR APPAREL IT CLEARLY WANTS TO APPEAL TO A YOUNGER MARKET OGILVY'S MR HALL SAYS THE SHOP HAS INDEED PUT OUT MORE CONTEMPORARY SPOTS FOR ELECTRONICS WHICH RAN ONLY ON CABLE HE ALSO NOTES THAT SEARS HASN'T RUN A SEPARATE APPAREL CAMPAIGN IN YEARS THE LAST TIME WAS IN THE EARLY 1980S WHEN FASHION MODEL CHERYL TIEGS HAD HER OWN CLOTHING LINE INSTEAD APPAREL HAS BEEN INCLUDED IN UMBRELLA SEARS ADS WHICH HAVE SPORTED THE SLOGAN YOU CAN COUNT ON ME SINCE THANKSGIVING 1991 IN SOME WAYS THE SEARS REVIEW COULDN'T HAVE COME AT A MORE AWKWARD TIME FOR OGILVY & MATHER IT IS UP FOR NEW BUSINESS FROM MILES LABORATORIES'S ALKASELTZER PLUS COLD MEDICINE AN AD AGENCY DOESN'T WANT UNFLATTERING ATTENTION CALLED TO ITSELF WHILE A MAJOR CLIENT IS EYEING IT FOR ADDITIONAL BUSINESS AS LONG AGO AS LAST JUNE INDUSTRY RUMORS HAD IT THAT SEARS WAS LISTENING TO PITCHES FROM OTHER AGENCIES INCLUDING OMNICOM GROUP'S DDB NEEDHAM WHICH HAD HANDLED APPAREL ADS FOR SEARS UNTIL LOSING THE BUSINESS TO OGILVY IN THE EARLY 1980S NOW DDB NEEDHAM IS A LIKELY COMPETITOR IN THE NEW REVIEW AS ARE YOUNG & RUBICAM IN NEW YORK AND THE CHICAGO OFFICES OF FOOTE CONE & BELDING AND J WALTER THOMPSON BOTH OF WHICH ARE FORMER SEARS AGENCIES SEARS NEEDS TO SHAKE THINGS UP AND A GIANT COMPANY IN SUCH A STATE USUALLY IMPOSES AN AD AGENCY REVIEW IN THE LAST DECADE SEARS FELL BEHIND WALMART AND KMART IN ANNUAL RECEIPTS AND LAST MONTH REPORTS SURFACED THAT SEARS MAY CLOSE 80 TO 100 OF ITS 860 RETAIL STORES ALTHOUGH THE COMPANY HASN'T CONFIRMED IT THE BIG RETAILER IS LIKELY TO LEAN MORE ON ITS MERCHANDISE GROUP AS IT SHEDS SOME OF ITS FINANCIAL SERVICES UNITS SEARS INTENDS TO SPIN OFF ITS COLDWELL BANKER REAL ESTATE SUBSIDIARY ITS DEAN WITTER UNIT WHICH INCLUDES ITS DISCOVER CARD OPERATIONS AND 20 OF ITS ALLSTATE INSURANCE UNIT IN APPAREL SEARS HAS BEEN DOING EXTREMELY WELL WITH WOMEN'S AND GIRLS' CLOTHING SAYS MR WELLER OF MONTGOMERY SECURITIES SEARS SAYS IT DOESN'T PUBLICLY BREAK OUT ITS APPAREL SALES FIGURES BUT IN DECEMBER COMPANYWIDE SALES WERE UP 9 OVER A YEAR EARLIER REMAINING CHARACTERISTICALLY UPBEAT OGILVY'S MR HALL IS CONFIDENT THE AGENCY CAN STAGE AN ENCORE RIVALING ITS AMERICAN EXPRESS COMEBACK HE INSISTS OUR RELATIONSHIP WITH SEARS HAS NEVER BEEN BETTER BOKS A LINE OF CASUAL SHOES MADE BY REEBOK INTERNATIONAL LTD SAID IT NARROWED THE SEARCH FOR AN ADVERTISING AGENCY INCLUDED IN A PREVIOUSLY ANNOUNCED REVIEW IS INCUMBENT TOTH DESIGN AS WELL AS AMMIRATI & PURIS CHIAT/DAY WHICH HANDLES REEBOK ADVERTISING AND KIRSHENBAUM & BOND REEBOK SAYS IT HOPES TO ANNOUNCE THE AGENCY BY MARCH 1 AT THE LATEST GENESEE GENESSE BREWING CO NAMED PEDONE & PARTNERS NEW YORK AS ITS AGENCY FOR THE 5 MILLION BEER ACCOUNT CLAIROL AHERN NEW YORK WINS CLAIROL PROFESSIONAL PRODUCTS DIVISION ASSIGNMENT ESTIMATED AT 2 MILLION TO 3 MILLION 9301250022 930125 INTERNATIONAL OPEC CONSENSUS ON CUTS IN OUTPUT IS EMERGING SPECIAL TO THE WALL STREET JOURNAL KUWAIT CITY THE PRESIDENT OF OPEC WHO IS REPORTEDLY SEEKING PRODUCTION CUTS SAID A BROAD CONSENSUS IS EMERGING AMONG MEMBERS ON MEASURES THAT COULD BE TAKEN TO ARREST THE SLIDE IN CRUDE OIL PRICES SPEAKING ON HIS ARRIVAL IN KUWAIT ON THE LATEST LEG OF HIS TOUR OF MAJOR OIL PRODUCING COUNTRIES ALIRIO PARRA SAID SO FAR WE HAVE A BROAD CONSENSUS ON THE MEASURES WE MIGHT WISH TO TAKE THE PRESIDENT IS ALSO THE OIL MINISTER FOR VENEZUELA MR PARRA IS REPORTED TO HAVE SUGGESTED CUTTING THE OPEC PRODUCTION CEILING TO 24 MILLION BARRELS A DAY FROM 24582 MILLION BARRELS A DAY FOR THE APRILJUNE QUARTER SAUDI ARABIA WHICH DOMINATES THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CARTEL SUGGESTED SATURDAY THE CEILING SHOULD BE CUT TO 23582 MILLION BARRELS A DAY AND IRAN A NOTED PRICE HAWK IN OPEC STRESSED YESTERDAY THE NEED FOR OIL CUTBACKS TO HELP BOLSTER OIL PRICES ON MR PARRA'S ARRIVAL KUWAIT OIL MINISTER ALI ALBAGHLI SAID THAT KUWAIT WOULD ABIDE BY OILPRODUCTION CUTS IF OPEC WANTED TO AGREE TO SUCH MEASURES HE SAID KUWAIT WAS PRODUCING OVER 17 MILLION BARRELS A DAY INCLUDING CRUDE FROM THE NEUTRAL ZONE IT SHARES WITH SAUDI ARABIA 9301250021 930125 STANDARD BRANDS PAINT AND CREDITORS AGREE ON REORGANIZATION TORRANCE CALIF STANDARD BRANDS PAINT CO AFTER NEARLY A YEAR IN CHAPTER 11 BANKRUPTCY PROCEEDINGS SAID IT REACHED AGREEMENT WITH ITS CREDITORS ON A CONSENSUAL PLAN OF REORGANIZATION UNDER THE AGREEMENT UNSECURED CREDITORS OF THE PAINT RETAILER WILL RECOVER ABOUT 55 CENTS TO 60 CENTS ON THE DOLLAR THE COMPANY SAID ABOUT 40 CENTS ON THE DOLLAR WILL COME FROM AN 88 MILLION CASH FUND FOR UNSECURED CREDITORS' CLAIMS THE REMAINING 15 CENTS TO 20 CENTS ARE EXPECTED TO BE GENERATED BY THE SALE OF SEVEN COLORADO PROPERTIES OWNED BY STANDARD BRANDS THE REORGANIZATION PLAN CALLS FOR TITLE TO THE PROPERTIES TO TRANSFER TO A LIQUIDATING TRUST FOR THE BENEFIT OF UNSECURED CREDITORS THE PLAN ALSO CALLS FOR DISTRIBUTION OF ABOUT 168 MILLION NEW SHARES OF STANDARD BRANDS COMMON STOCK TO VARIOUS CREDITORS AFTER THE DISTRIBUTION CURRENT COMMON SHAREHOLDERS WOULD RETAIN AN EQUITY STAKE OF ABOUT 25 THE COMPANY CURRENTLY HAS ABOUT 56 MILLION COMMON SHARES OUTSTANDING STANDARD BRANDS' SENIOR NOTEHOLDERS A GROUP OF INSURANCE COMPANIES WILL CONVERT THEIR EXISTING PREFERRED STOCK INTO ABOUT 55 MILLION SHARES OF NEW COMMON STOCK OR ABOUT 245 OF TOTAL SHARES OUTSTANDING FIDELITY MANAGEMENT & RESEARCH CO WHICH RECENTLY ACQUIRED STANDARD BRANDS' SECURED BANK DEBT WILL ACQUIRE 505 OF THE NEW COMMON STOCK FIDELITY AGREED TO LEND STANDARD BRANDS 8 MILLION TOWARD THE CASH PAYMENT TO UNSECURED CREDITORS STANDARD BRANDS FILED FOR BANKRUPTCY PROTECTION LAST FEBRUARY AFTER TALKS WITH POSSIBLE INVESTORS COLLAPSED THE RETAILER BURDENED BY DEBT IT INCURRED IN 1987 TO WARD OFF A HOSTILE TAKEOVER WAS ALSO SQUEEZED BY THE RECESSION IN CALIFORNIA THE REORGANIZATION PLAN IS SUBJECT TO CONFIRMATION A BANKRUPTCY COURT HEARING IS SCHEDULED FOR WEDNESDAY 9301250020 930125 TECHNOLOGY CELLULAR PHONE SAFETY CONCERNS HAMMER STOCKS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL A BATTLE IS BREAKING OUT OVER THE SAFETY OF PORTABLE CELLULAR TELEPHONES THE KIND THAT HAVE A BUILTIN TRANSMITTER IN THE HEADSET THE CONTROVERSY WAS TRIGGERED LATE LAST WEEK WHEN A FLORIDA MAN CLAIMED ON TELEVISION THAT THE BRAIN CANCER THAT KILLED HIS WIFE WAS CAUSED BY HER CHRONIC USE OF A PORTABLE CELLULAR TELEPHONE DAVID REYNARD OF ST PETERSBURG IS SUING JAPAN'S NEC CORP WHICH MADE THE PHONE AND A GTE CORP SUBSIDIARY THAT PROVIDED THE SERVICE THE BATTLE WILL BE JOINED LATER TODAY WHEN AN EXECUTIVE OF MOTOROLA INC THE WORLD'S BIGGEST PRODUCER OF CELLULAR PHONES HOLDS A PRESS CONFERENCE TO DEFEND THE SAFETY OF THE POPULAR PHONES THERE'S 40 YEARS OF RESEARCH WE'VE CONDUCTED AND WE HAVE EVERY REASON TO THINK OUR PRODUCTS ARE SAFE A MOTOROLA SPOKESMAN SAYS INDEED INDUSTRY SPONSORED STUDIES SHOW LOWPOWERED CELLULAR PHONES DO NOT TRIGGER TUMOR FORMATION AND MR REYNARD ACKNOWLEDGES THAT HIS WIFE'S DOCTORS AREN'T CONVINCED THAT THE USE OF HER CELLULAR PHONE CAUSED HER CANCER MR REYNARD PARTICIPATED IN A DISCUSSION OF THE SAFETY ISSUE THURSDAY NIGHT ON THE LARRY KING TELEVISION SHOW CONCERN ABOUT THE SAFETY ISSUE ROSE LAST WEEK AFTER ONE EXECUTIVE REGINALD LEWIS OF TLC BEATRICE DIED FROM BRAIN CANCER AND ANOTHER MICHAEL WALSH OF TENNECO INC WAS DIAGNOSED WITH THE SAME DISEASE REPRESENTATIVES OF BOTH COMPANIES DECLINED TO DISCUSS WHETHER EITHER EXECUTIVE WAS A FREQUENT USER OF CELLULAR PHONES WORRIED CONSUMERS DELUGED CELLULAR PHONE MANUFACTURERS AND TELEPHONE COMPANIES WITH QUESTIONS ABOUT THE SAFETY OF THEIR PHONES ACCORDING TO A SPOKESMAN FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION IN WASHINGTON ONE SECURITY ANALYST SPECIALIZING IN COMMUNICATIONS COMPANIES JOHN BAUER AT PRUDENTIAL SECURITIES INC SAID HE WAS INUNDATED WITH CALLS FROM TRADERS WONDERING WHETHER THERE WAS A LINK BETWEEN THE TWO EXECUTIVES' BRAIN CANCER AND CELLULAR PHONES PRUDENTIAL LATER CHANGED ITS RECOMMENDATION ON MCCAW CELLULAR COMMUNICATIONS INC STOCK TO SELL FROM HOLD IN THE WAKE OF SUCH PUBLICITY STOCK PRICES OF CELLULAR PHONE COMPANIES DROPPED MCCAW FELL 2125 TO CLOSE AT 36375 IN NATIONAL OVERTHECOUNTER TRADING GTE CORP'S CONTEL CELLULAR DROPPED BY 225 TO 1525 MOTOROLA FELL 225 TO 59125 ON THE NEW YORK STOCK EXCHANGE FRIDAY SPECULATION ABOUT THE SAFETY OF THE CELLULAR PHONES WHETHER REALISTIC OR FANTASY COULD SERIOUSLY DAMAGE THE GROWTH OF THE MULTIBILLION DOLLAR INDUSTRY THE CONTROVERSY COULD ALSO THROW A PALL OVER DREAMS OF THE WIRELESS WORLD THAT COMMUNICATIONS AND COMPUTER COMPANIES LIKE MOTOROLA AMERICAN TELEPHONE & TELEGRAPH CO AND APPLE COMPUTER INC HAVE BEEN TOUTING THEY ENVISION THE DAY WHEN PEOPLE AROUND THE WORLD WILL BE ABLE TO FREELY COMMUNICATE WITH EACH OTHER VIA POCKET TELEPHONES WIRELESS LAPTOP COMPUTERS AND ELECTRONIC NOTEPADS SUCH ELECTRONIC DEVICES LIKE THE PORTABLE CELLULAR PHONES INVOLVE OPERATING A RADIO TRANSMITTER CLOSE TO THE BODY THE CELLULAR PHONE CONTROVERSY PUSHES THE GROWING DEBATE ABOUT THE HEALTH EFFECTS OF ELECTROMAGNETIC FIELDS INTO A NEW AREA THE HIGHFREQUENCY ELECTROMAGNETIC WAVES USED IN COMMUNICATIONS UNTIL NOW THIS DEBATE HAS FOCUSED ON THE LOWFREQUENCY RADIATION EMITTED BY HIGHVOLTAGE POWER TRANSMISSION LINES VIDEO DISPLAY TERMINALS AND ELECTRIC MOTORS RANGING FROM THOSE IN FACTORIES TO THE MOTORS IN VACUUM CLEANERS ELECTRIC RAZORS AND HAIR DRYERS SUCH POWER LINES MOTORS AND VIDEO TERMINALS EMIT ELECTROMAGNETIC WAVES AT RATES RANGING FROM 15 CYCLES A SECOND 15 HERTZ TO 30000 CYCLES A SECOND 30 KILOHERTZ THERE HAVE BEEN POPULATION STUDIES HINTING THAT CANCER MISCARRIAGES AND OTHER ILL EFFECTS ARE MORE COMMON THAN EXPECTED AMONG PEOPLE EXPOSED TO THESE LOWFREQUENCY FIELDS A PANEL OF EXPERTS CONVENED BY THE US LABOR DEPARTMENT RECENTLY LOOKED AT MORE THAN 1000 STUDIES AND CONCLUDED THAT THE EVIDENCE OF HARM WASN'T CONVINCING BUT THE REPORT WAS ATTACKED BY AT LEAST TWO SCIENTISTS IN THE FIELD INCLUDING ONE FROM THE US DEPARTMENT OF ENERGY THE CELLULAR PHONES HOWEVER TRANSMIT AT MUCH HIGHER FREQUENCIES IN THE RANGE OF 800 MILLION TO 900 MILLION CYCLES A SECOND 800 TO 900 MEGAHERTZ FUTURE POCKET PHONES MAY OPERATE AT EVEN HIGHER FREQUENCIES IN THE BILLIONS OF CYCLES A SECOND GIGAHERTZ IT'S BEEN LONG KNOWN THAT ELECTROMAGNETIC WAVES AT THESE FREQUENCIES IF THEY ARE EMITTED AT HUNDREDS TO THOUSANDS OF WATTS OF POWER CAN CAUSE HEAT DAMAGE TO THE BODY AND CATARACTS IN THE EYES BUT THE CELLULAR PHONES OPERATE AT EXTREMELY LOW POWERS ON THE ORDER OF ABOUT HALF A WATT FOR THE SMALL POCKET PHONES TO THREE WATTS FOR THE LARGER ONES CARRIED IN ATTACHE CASES OR USED IN CARS AT THESE LOW POWERS THE HEAT OR THERMAL EFFECTS ARE NEGLIGIBLE BUT THERE'S A DEARTH OF RESEARCH ON WHETHER THESE HIGH FREQUENCIES HAVE OTHER NONTHERMAL EFFECTS THAT COULD BE HARMFUL WE HAVE NEARLY NO EXPERIMENTS IN THE CELLULAR TELEPHONE RANGE ALMOST NOTHING IS KNOWN ABOUT THE ATHERMAL BIOLOGICAL EFFECTS AT THAT FREQUENCY SAYS WERNER GRUNDLER A GERMAN BIOPHYSICIST WHO WORKS AT THE MUNICHBASED INSTITUTE OF BIOPHYSICAL RADIATION RESEARCH A UNIT OF THE STATEOWNED GSF RESEARCH CENTER OF ENVIRONMENT & HEALTH PEOPLE ARE NOT CONVINCED THERE IS A PROBLEM BUT THERE IS A GREAT NEED TO DO MUCH WORK IN THE CELLULAR FIELD HE SAYS THE INSTITUTE OF ELECTRONIC & ELECTRICAL ENGINEERS THIS SPRING IS DUE TO REVISE ITS SOCALLED C95 DOCUMENT OF GUIDELINES FOR ACCEPTABLE EMISSIONS FROM RADIO DEVICES THE FEDERAL COMMUNICATIONS COMMISSION USES THE INSTITUTE'S RECOMMENDATIONS FOR SETTING EMISSION RULES RIGHT NOW THOSE RULES HAVE A SEVENWATT LIMIT FOR RADIO COMMUNICATIONS DEVICES THE GROUP'S REVISION IS EXPECTED TO CALL FOR A CUT IN ALLOWABLE WATTAGE FOR DEVICES OPERATING IN THE 900 MHZ FREQUENCY RANGE A RANGE THAT INCLUDES CELLULAR PHONES TO 35 WATTS MOTOROLA'S OWN RESEARCH SUPPORTS THIS MOVE TO TIGHTEN THE PARAMETERS RESEARCHERS ARE FINDING THAT HIGHFREQUENCY EMISSIONS DO HAVE BIOLOGICAL EFFECTS BUT WHETHER THEY ARE HARMFUL IS UNKNOWN DR GRUNDLER NOTES THAT IN HIS OWN EXPERIMENTS HE WAS ABLE TO MANIPULATE THE ACTIVITY AND GROWTH OF YEAST CELLS BY USING HIGHFREQUENCY RADIO WAVES AND A TUNER HE SAYS HE COULD HAVE PRODUCED THE SAME RESULTS IN THE LOWER FREQUENCIES USED BY CELLULAR PHONES AT SWEDEN'S LM ERICSSON ONE OF THE WORLD'S LARGEST SUPPLIERS OF CELLULAR PHONES AND SYSTEMS BORJE WAMBLAD A RADIO SCIENTIST NOTES THAT ERICSSON AND TELEVERKERT RADIO THE STATEOWNED CARRIER PAID MEDICAL RESEARCHERS AT THE UNIVERSITY HOSPITAL IN LUND SWEDEN TO TEST THE BIOPHYSICAL EFFECTS OF RADIO WAVES ON RATS THE SWEDISH SCIENTISTS EXPOSED THE RATS TO CONTINUOUS AND PULSED WAVES IN THE FREQUENCY JUST ABOVE CELLULAR THE RESULT THEY FOUND PENETRATION OF THE BLOODBRAIN BARRIER HE SAYS THE BLOODBRAIN BARRIER IS ACTUALLY A CHEMICAL THAT SURROUNDS THE BLOOD VESSELS AND PROTECTS BRAIN TISSUE FROM INJURIOUS SUBSTANCES SUCH AS DRUGS AND OTHER TOXINS BODIES ARE RESONANT AND CAN ACT AS ANTENNAS SAID W ROSS ADEY ASSOCIATE CHIEF OF THE RESEARCH DEPARTMENT AT JL PETTIS MEMORIAL VA MEDICAL CENTER IN LOMA LINDA CALIF THE RESEARCH INTO THE CUMULATIVE EFFECT OF EXPOSURE IN THE CELLULAR FREQUENCY BAND IS NEGLIGIBLE DR ADEY SAYS HIS EXPERIMENTS INDICATED THAT EVEN RADIO WAVES OF FAR LOWER POWER THAN EMITTED BY TODAY'S CELLULAR PHONES CAN BREAK DOWN THE CALCIUM THAT COATS CELLS AND TRANSMITS SIGNALS BETWEEN CELLS I SHOWED THIS BREAKDOWN OCCURRED AT 145 MHZ AT WHICH HAM RADIOS OPERATE AND AT 450 MHZ THE FREQUENCY THAT RADIO PHONES WHICH SECURITY GUARDS USE OPERATE HE SAYS EUROPEAN CELLULAR SYTEMS CURRENTLY OPERATE AT 450 MHZ A MOTOROLA EXECUTIVE SAYS THE COMPANY HAS SUPPORTED EXPERIMENTS BY DR ADEY ON THE POSSIBLE CANCERCAUSING EFFECTS OF HIGH FREQUENCY WAVES BUT DECLINES TO SAY WHAT THE RESULTS WERE GERNERALLY THE CONCLUSION DR ADEY'S TEAM DREW IS THAT THEY DON'T CAUSE TUMOR FORMATION SAYS ROBERT WEISSHAPPEL SENIOR VICE PRESIDENT WE INVESTED SUBSTANTIAL RESOURCES LOOKING AT RADIO FREQUENCY ATHERMAL EFFECTS AND SEVERAL MILLION DOLLARS A YEAR OVERALL HE SAYS EFFECTS ON CELL ACTIVITY AND INITIATION OF A TUMOR ARE VERY DIFFERENT THINGS SAYS A SPOKESMAN FOR THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION THERE HAVE BEEN THOUSANDS OF STUDIES THAT HAVE SHOWN THESE PHONES ARE SAFE DO WE NEED MORE STUDIES AND THEN JUST ONE MORE STUDY AFTER THAT AND THEN ANOTHER ONE AFTER THAT THE SPOKESMAN CALLS MR REYNARD'S EFFORTS A SCARE TACTIC ARISING FROM AN IRRESPONSIBLE PRODUCT LIABILITY LAWSUIT COMMENTING ON THE LAWSUIT A GTE SPOKESMAN SAYS WE AGREE THAT NO STUDIES EXIST THAT LINK BRAIN CANCER WITH CELLULAR PHONES IN FACT STUDIES TO DATE INDICATE THERE IS NO LINK CALLS TO NEC WERE NOT RETURNED MR REYNARD NOTED THE POWER STANDARDS FOR CELLULAR PHONES ARE THREE TIMES HIGHER THAN THOSE ALLOWED FOR LEAKAGE FROM MICROWAVE OVENS REMEMBER HE SAYS YOU'RE PUTTING THAT PHONE AGAINST YOUR HEAD 9301250019 930125 CREDIT RATINGS GPU CORP MOODY'S INVESTORS SERVICE INC DOWNGRADED THE DEBT RATINGS OF TWO GPU OPERATING UNITS FOLLOWING AN UNFAVORABLE RATE CASE DECISION FOR ITS METROPOLITAN EDISON CO UNIT WHICH OPERATES IN PENNSYLVANIA MOODY'S LOWERED THE LONGTERM DEBT RATING OF METROPOLITAN EDISON MUHLENBERG TOWNSHIP PA TO SINGLEA3 FROM SINGLEA2 ABOUT 532 MILLION IN DEBT WAS AFFECTED MOODY'S ALSO LOWERED THE DEBT RATING OF PENNSYLVANIA ELECTRIC CO JOHNSTOWN PA TO SINGLEA2 FROM SINGLEA1 THE RATINGS SERVICE PLACED GPU'S THIRD OPERATING UNIT JERSEY CENTRAL POWER & LIGHT CO MORRISTOWN NJ UNDER REVIEW FOR A POSSIBLE DOWNGRADE TESORO PETROLEUM CORP SAN ANTONIO MOODY'S INVESTORS SERVICE INC LOWERED ITS RATING ON THIS ENERGY COMPANY'S SUBORDINATED DEBENTURES TO CAA FROM SINGLEB3 MOODY'S SAID THE MOVE WHICH AFFECTS ABOUT 107 MILLION OF LONGTERM DEBT REFLECTS TESORO'S WEAKENED OPERATING PERFORMANCE CASH FLOW PROBLEMS AND DEPENDENCE ON THE DEPRESSED MARKET FOR RESIDUAL FUEL OIL THE RATINGS AGENCY SAID THE MARKET FOR LOWVALUE RESIDUAL FUEL HAS BEEN DEPRESSED SINCE THE PERSIAN GULF WAR WHICH REMOVED A SIGNIFICANT AMOUNT OF LIGHT CRUDE FROM THE WORLD MARKET RESULTING IN HIGHER OUTPUTS OF RESIDUAL PRODUCTS TESORO'S EXPLORATION AND PRODUCTION OPERATIONS WERE ALSO ADVERSELY AFFECTED MOODY'S SAID WHEN THE BOLIVIAN GOVERNMENT LOWERED ITS CONTRACTUAL PRICE FOR TESORO'S NATURAL GAS TO 1 A THOUSAND CUBIC FEET FROM 250 A THOUSAND CUBIC FEET WHILE THE COMPANY HAS A RELATIVELY LARGE CASH BALANCE MOODY'S SAID THIS EXCESS LIQUIDITY IS PARTIALLY OFFSET BY TESORO'S LIABILITY TO THE STATE OF ALASKA THE COMPANY RECENTLY AGREED TO REIMBURSE ALASKA FOR PAST PURCHASES OF UNDERPRICED OIL AND ITS ESTIMATED LIABILITY WILL BE ABOUT 725 MILLION 9301250018 930125 ASK FOR OPTIONS AND THEY'LL OFFER MEATBALLS OR A WHITE CLAM SAUCE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL TALK ABOUT WARMEDOVER STOCKS HUNDREDS OF INVESTORS CALLING THE BALTIMORE HEADQUARTERS OF ALEX BROWN & SONS INC A BROKERAGE FIRM HAVE GOTTEN AN UNEXPECTED RESPONSE ON THE OTHER END OF THE PHONE LATELY INSTEAD OF REACHING THEIR STOCKBROKER OR INVESTMENT BANKER THEY HEAR GOOD MORNING ARCHIE'S TAVERN IN RHODE ISLAND IT'S NOT ALEX BROWN'S FAULT THE PROBLEM IT SEEMS IS CONFUSION OVER THE NEW AREA CODE FOR EASTERN MARYLAND WHICH HAS BECOME 410 INSTEAD OF 301 MANY OUTOFTOWN CALLERS TO ALEX BROWN'S MAIN NUMBER WHO ARE USED TO 301 ARE MIXING UP THE NEW AND OLD CODES AND HITTING 401 SO THEY REACH RHODE ISLAND AND ARCHIE'S THIS HAS DISRUPTED THE LIFE OF GLORIA CAPOBIANCO THE BUSY RECEPTIONIST AT ARCHIE'S A SEAFOODANDITALIAN EATERY IN PAWTUCKET I'D SAY AT LEAST 15 CALLS A DAY MAYBE MORE ARE FOR ALEX BROWN SIGHS MRS CAPOBIANCO IT GETS TO A POINT NOW WHERE THEY ASK FOR CERTAIN DEPARTMENTS AND I KNOW THEY'RE LOOKING FOR ALEX BROWN THERE ARE QUITE A FEW DEPARTMENTS THERE I'LL TELL YOU THAT DIALING CONFUSION ELSEWHERE IS IN THE CARDS AS MORE AREA CODES ARE INTRODUCED TO ACCOMMODATE THE GLUT OF NEW US PHONE NUMBERS FOR EXAMPLE WHEN SOUTHEASTERN PENNSYLVANIANS SWITCH TO 610 FROM 215 NEXT YEAR SOME ARE SURE TO PUNCH IN 615 IF SO HELLO TENNESSEE PEOPLE'S FINGERS DO STRANGE THINGS ON THE DIAL SAYS RON CONNERS OF BELL COMMUNICATIONS RESEARCH CORP WHO'S IN CHARGE OF THE NATION'S POOL OF 144 AREA CODES HE SAYS BELLCORE TRIES HARD TO AVOID CONFUSION WHEN NEW CODES ARE ASSIGNED BUT THERE ARE NEARLY NO CODES LEFT TO PICK FROM A PLAN TO CREATE 640 ADDITIONAL CODES WITH NEW TECHNOLOGY IS AT LEAST TWO YEARS AWAY THE MARYLAND PHONE COMPANY SAYS IT BENT OVER BACKWARD TO EDUCATE PEOPLE ABOUT THE STATE'S NEW 410 CODE THE SWITCHOVER WAS AMONG THE SMOOTHEST OF THE DOZEN OR SO US AREACODE CHANGES IN RECENT YEARS SAYS DAVE PACHOLCZYK OF BELL ATLANTIC CORP'S CHESAPEAKE & POTOMAC TELEPHONE THAT DOESN'T HELP MRS CAPOBIANCO ALTHOUGH THE BEFUDDLED ALEX BROWN INVESTORS SHE TALKS TO ARE ABSOLUTELY PLEASANT EVERY ONE OF THEM THAT HASN'T CONVINCED HER TO BUY STOCKS FROM ALEX BROWN SHE CONFIDES I HAVE MY OWN BROKER AT PAINEWEBBER 9301250017 930125 HEALTH MORE MANAGED HEALTHCARE SYSTEMS USE INCENTIVE PAY TO REWARD BEST' DOCTORS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL FORT WASHINGTON PA FAMILY PHYSICIAN DAVID BADOLATO WINS HIGH MARKS FROM PATIENTS FOR BEING AVAILABLE IN EMERGENCIES EXPLAINING TREATMENTS CLEARLY AND CARING ABOUT THEIR NEEDS HE ALSO QUALIFIED THIS MONTH FOR A 19 PAY BONUS FROM US HEALTHCARE INC A MAJOR HEALTHMAINTENANCE ORGANIZATION THAT PROVIDES HIM ABOUT HALF OF HIS 2300 PATIENTS EACH YEAR US HEALTHCARE SURVEYS ITS MEMBERS TO SEE HOW THEY LIKE THEIR DOCTORS DR BADOLATO'S INCENTIVE PAY FOR 1992 WAS TIED IN PART TO HIS SCORE ON PATIENTS' QUESTIONNAIRES HIS 19 BONUS EXCEEDED THE 15 AVERAGE FOR DOCTORS IN THE US HEALTHCARE SYSTEM INCENTIVEPAY SYSTEMS FOR DOCTORS ARE CATCHING ON SPURRED BY A BELIEF THAT THEY MAY HELP UPGRADE THE QUALITY OF MEDICAL CARE PROVIDED BY HMOS AND OTHER MANAGEDCARE PROGRAMS OTHER HMOS THAT HAVE BEGUN USING THEM INCLUDE FHP INTERNATIONAL CORP IN CALIFORNIA THE MANAGEDCARE UNITS OF CIGNA CORP AND NEW YORK LIFE INSURANCE CO AND FLORIDABASED AVMEDSANTA FE THIS GETS AT THE QUESTION FOR DOCTORS HOW DO I EXCEL IN MANAGED CARE HOW DO I GET A CHANCE TO DO BETTER SAYS STEPHEN ZATZ HEAD OF US HEALTHCARE'S QUALITY PROGRAM RAISED HACKLES BUT PAYING BONUSES TO DOCTORS RAISES HACKLES AT A LOT OF OTHER HMOS SKEPTICS DON'T LIKE THE IDEA OF BASING INCENTIVES ON PATIENTS' SENSE OF QUALITY ARGUING THAT PATIENTS RELY TOO MUCH ON FRINGE ISSUES SUCH AS A RECEPTIONIST'S DEMEANOR OR A DOCTOR'S PUNCTUALITY UNTIL PROTOCOLS ARE DEVELOPED THAT CLEARLY ASSESS THE QUALITY OF CARE WE'RE NOT COMFORTABLE WITH A REWARD OR PENALTY SYSTEM BASED ON PATIENT RESPONSES SAYS STEPHEN WIGGINS CHIEF EXECUTIVE OFFICER OF OXFORD HEALTH PLAN INC A DARIEN CONN HEALTHMAINTENANCE ORGANIZATION HE WOULD RATHER SEE SOPHISTICATED STUDIES OF ILLNESSES TREATMENTS AND PATIENT OUTCOMES WHICH AREN'T YET READILY AVAILABLE ANOTHER CONCERN SAYS GENE LINDSAY CHAIRMAN OF THE PHYSICIANS' COUNCIL AT HARVARD COMMUNITY HEALTH PLAN IS THAT MERITPAY SYSTEMS CAN DISRUPT DOCTORS' ABILITY TO WORK TOGETHER IN A COLLEGIAL WAY HIS MASSACHUSETTSBASED HMO TRIED BUT HAS SINCE ABANDONED A SYSTEM IN WHICH STAFF DOCTORS GOT SLIGHTLY DIFFERENT BONUSES DEPENDING ON WHETHER THEIR SECTION CHIEFS JUDGED THEIR WORK TO BE EXEMPLARY OR COMMENDABLE SAYS DR LINDSAY WE HAD DOCTORS ALMOST GETTING INTO FISTFIGHTS OVER WHAT AMOUNTED TO A 500 BONUS STILL MANY HEALTHCARE PROFESSIONALS ARE INTRIGUED BY THE IDEA OF DEVISING A PROBLEMFREE INCENTIVEPAY SYSTEM FOR HMO DOCTORS SOME HMO ADMINISTRATORS SEE IT AS A TEACHING TOOL THAT COULD NUDGE DOCTORS TO CHANGE THE WAY THEY PRACTICE MEDICINE IN ADDITION QUALITY SCORE CARDS CAN HELP DETERMINE WHICH DOCTORS WILL BE ALLOWED TO KEEP PRACTICING UNDER AN HMO'S UMBRELLA AND WHICH ONES WILL BE DROPPED THE INCENTIVE SYSTEMS ARE DESIGNED FOR PHYSICIANS LIKE DR BADOLATO WHO ARE IN PRIVATE PRACTICE BUT HAVE A CONTRACT TO TREAT PATIENTS WHO SUBSCRIBE TO AN HMO TYPICALLY SUCH DOCTORS ARE PAID A FLAT RATE SUCH AS 10 A MONTH FOR EACH PATIENT THEY HANDLE SOME PATIENTS NEED A GREAT DEAL OF CARE OTHERS NEED HARDLY ANY ON AVERAGE THOUGH THAT FLAT RATE IS MEANT TO PROVIDE DOCTORS WITH A COMPETITIVE INCOME FOR THEIR OVERALL GROUP OF PATIENTS FLATRATE SYSTEMS ARE MUCH EASIER TO ADMINISTER THAN CONVENTIONAL BILLING SYSTEMS IN WHICH DOCTORS CHARGE EACH PATIENT SEPARATELY FOR SERVICES RENDERED ADMINISTRATORS LIKE THEM TOO BECAUSE DOCTORS CAN'T EARN MORE BY PROVIDING EXCESSIVE TREATMENT SOME SYSTEMS IN FACT WITHHOLD PART OF DOCTORS' PAYMENTS UNTIL YEAR END AND THEN PAY THE RESIDUALS ONLY TO DOCTORS WHO HAVE HELD COSTS BELOW A PRESET TARGET BUT FLATRATE SYSTEMS AREN'T ALWAYS SEEN AS BEING IN PATIENTS' BEST INTERESTS BECAUSE DOCTORS DON'T GET PAID EXTRA FOR HANDLING COMPLICATED CASES CRITICS CONTEND THAT HMOS CAN AMOUNT TO ASSEMBLYLINE MEDICINE IN WHICH DOCTORS ARE JUDGED MOSTLY ON THEIR ABILITY TO PROCESS PATIENTS QUICKLY AND CHEAPLY WE WANT TO CREATE AN ENVIRONMENT WHERE WE CAN EMPOWER THE PHYSICIAN SAYS BERNARD MANSHEIM CHIEF OF MEDICAL SERVICES FOR AVMEDSANTA FE HIS COMPANY PAYS DOCTORS A QUALITYPERFORMANCE BONUS OF 5 TO 15 OF THEIR BASE PAY DEPENDING ON HOW THEY SCORE ON PATIENTSATISFACTION QUESTIONNAIRES AND A REVIEW OF THEIR OFFICE RECORDS DOCTORS WHO TAKE EXTRA STEPS TO SERVE THEIR PATIENTS SUCH AS KEEPING LONGER OFFICE HOURS END UP WITH FINANCIAL REWARDS IN AVMED'S SYSTEM AVMED'S INCENTIVES CURRENTLY COVER ONLY FAMILY DOCTORS AND OTHER PRIMARYCARE PHYSICIANS THE COMPANY SAYS IT HASN'T YET DEVISED A GOOD INCENTIVE SYSTEM FOR SPECIALISTS BUT IT IS WORKING ON ONE IN GENERAL INCENTIVE SYSTEMS WORK BETTER FOR HMOS THAT DEAL WITH INDEPENDENT PRACTITIONERS AS OPPOSED TO HMOS THAT HAVE THEIR OWN FULLTIME PHYSICIANS ON STAFF THAT'S BECAUSE PAY DIFFERENTIAL SEVEN TINY ONES ARE MORE LIKELY TO HEAT UP RIVALRIES AMONG STAFF DOCTORS WHO MUST WORK SIDE BY SIDE EVERY DAY THE NATION'S BIGGEST STAFFMODEL HMO KAISER PERMANENTE BASED IN OAKLAND CALIF SAYS IT ISN'T USING INCENTIVEPAY SYSTEMS AND DOESN'T EXPECT TO INCENTIVES MAY WORK IN THE SHORT TERM SAYS SHARON LEVINE KAISER'S ASSOCIATE EXECUTIVE DIRECTOR FOR PHYSICIAN SUPPORT BUT OVER TIME PEOPLE FEEL BEATEN UP BY THEM EVEN DOCTORS WHO SCORE WELL UNDER CURRENT QUALITY GAUGES HAVE SOME QUIBBLES ABOUT HOW THEY ARE MEASURED IN HIS RECENT REVIEW DR BADOLATO THE PENNSYLVANIA FAMILY PRACTITIONER GOT HIGH MARKS IN EVERYTHING EXCEPT PEDIATRIC RECORDKEEPING HIS SHORTCOMING HE DIDN'T JOT DOWN ON CHILDREN'S MEDICAL CHARTS WHETHER THEY WERE EXPOSED TO PARENTS' CIGARETTE SMOKE AT HOME I ALWAYS ASK ABOUT PASSIVE SMOKE DR BADOLATO SAYS BUT I JUST DIDN'T PUT IT DOWN ON THE CHARTS IN THE FUTURE HE SAYS HE WILL RECORD SMOKEEXPOSURE INFORMATION BUT HE DOESN'T THINK HE SHOULD HAVE BEEN PENALIZED FOR THE OMISSION LAST YEAR IN RESPONSE US HEALTHCARE OFFICIALS SAY THEY BELIEVE THAT DETAILED RECORDKEEPING IS AN IMPORTANT PART OF MEDICAL PRACTICE HELPING DOCTORS DIAGNOSE UNEXPECTED CHANGES IN PATIENTS' HEALTH THE COMPANY ALSO SAYS IT IS WORKING HARD TO INCLUDE MORE QUALITY MEASURES RELATED DIRECTLY TO DOCTORS' PRACTICES SUCH AS HOW OFTEN DOCTORS ADMINISTER MAMMOGRAMS TO WOMEN AT RISK FOR BREAST CANCER THIS YEAR US HEALTHCARE IS EXPANDING ITS INCENTIVEPAY SYSTEM TO START COVERING HOSPITALS AND SPECIALISTS SUCH AS RADIOLOGISTS OR OBSTETRICIANS IT IS LOOKING FOR SUCH THINGS AS SURGEONS WITH LOW COMPLICATION RATES OR OBSTETRICIANS WHO DON'T RELY HEAVILY ON CAESAREAN SECTIONS TO DELIVER BABIES BECAUSE QUALITY SCORE CARDS FOR DOCTORS ARE STILL A RELATIVELY NEW IDEA MANY OF THE SYSTEM'S FANS SAY THEY HOPE THAT ANY CURRENT SHORTCOMINGS CAN BE REMEDIED BY MORE SOPHISTICATED MEASURING SYSTEMS IN THE FUTURE WE'RE STILL VERY EARLY IN THE LEARNING CURVE IN MEASURING QUALITY IN HEALTH CARE SAYS AVMED'S DR MANSHEIM YOU CAN DESIGN VARIOUS MEASURES BUT WHETHER THEY'RE TRULY GOOD MEASURES OF QUALITY IS AN OPEN QUESTION HERE ARE SOME OF THE MORE THAN 20 QUALITY STANDARDS USED BY US HEALTHCARE INC TO DETERMINE WHAT LEVEL OF INCENTIVE PAYMENTS FAMILY PRACTITIONERS PEDIATRICIAN AND INTERNISTS WILL RECEIVE FOR DELIVERING HIGHQUALITY MEDICAL CARE HOW EASY IS IT TO MAKE APPOINTMENTS FOR CHECKUPS HOW LONG IS THE WAITING TIME IN A DOCTOR'S OFFICE HOW MUCH PERSONAL CONCERN DOES A DOCTOR SHOW FOR PATIENTS HOW READILY CAN PATIENTS OBTAIN FOLLOWUP TEST RESULTS WOULD PATIENTS RECOMMEND THEIR DOCTOR TO OTHERS DO DOCTORS PROVIDE REGULAR IMMUNIZATIONS FOR CHILDREN BREASTCANCER CHECKS FOR WOMEN COLONCANCER CHECKS FOR MEN WHAT PERCENT OF A DOCTOR'S PATIENTS TRANSFER TO ANOTHER PHYSICIAN'S CARE EACH YEAR NOTE ANSWERS TO FIRST FIVE QUESTIONS ARE BASED ON PATIENTS' RESPONSES TO QUESTIONNAIRES FINAL TWO ARE BASED ON EXAMINATION OF DOCTOR'S MEDICAL RECORDS AND US HEALTHCARE'S OWN DATA 9301250016 930125 BUSINESS BRIEF RICHFOOD HOLDINGS INC FIRM BUYS UNIT OF B GREEN SHARE PRICE INCREASES 87 SHARES OF RICHFOOD HOLDINGS INC JUMPED 87 ON NEWS THAT IT ACQUIRED B GREEN & CO'S CIVILIAN WHOLESALE DIVISION FOR ABOUT 55 MILLION RICHFOOD HOLDINGS A MIDATLANTIC REGION GROCERY DISTRIBUTOR SAID SALES FOR THE DIVISION'S MOST RECENT FISCAL YEAR EXCEEDED 300 MILLION RICHFOOD OF RICHMOND VA ACQUIRED B GREEN'S CIVILIAN INVENTORY CUSTOMER NOTES AND ACCOUNTS RECEIVABLE AND CUSTOMER SUPPLY AGREEMENTS B GREEN IS A CLOSELY HELD BALTIMORE GROCERY COMPANY THAT ALSO RECENTLY ANNOUNCED PLANS TO SELL ITS MILITARY FOOD SUPPLY DIVISION RICHFOOD ALSO ENTERED INTO LONGTERM SUPPLY AGREEMENTS WITH B GREEN'S CASH AND CARRY AND RETAIL GROCERY OPERATIONS AS WELL AS WITH FARM FRESH OF MARYLAND A 13STORE SUPERMARKET CHAIN RICHFOOD'S SHARES CLOSED AT 2375 UP 225 IN OVERTHECOUNTER TRADING FRIDAY 9301250015 930125 WHO'S NEWS CALIFORNIA MICROWAVE INC CALIFORNIA MICROWAVE INC SUNNYVALE CALIF PHILIP F OTTO PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS SATELLITE AND WIRELESS COMMUNICATIONS COMPANY FOUNDING CHAIRMAN DAVID B LEESON IS RETIRING 9301250014 930125 MARKETING & MEDIA NEW YORK POST GETS LASTMINUTE REPRIEVE AS TOWERS FINANCIAL PLEDGES INVESTMENT BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A HALFHOUR BEFORE THE NEW YORK POST WAS TO ANNOUNCE IT WOULD SUSPEND PUBLICATION A POTENTIAL INVESTOR STEPPED FORWARD TO RESCUE THE 192YEAROLD PAPER FROM EXTINCTION LAST NIGHT STEVEN HOFFENBERG CHAIRMAN OF NEW YORKBASED TOWERS FINANCIAL INC EMERGED AS THE NEW MAJORITY INVESTOR IN THE POST CURRENTLY OWNED BY REAL ESTATE DEVELOPER PETER KALIKOW THE SCRAPPY TABLOID WHOSE BANK CREDIT WAS SHUT OFF WAS IN A CASHFLOW CRISIS AND HAD ASKED EMPLOYEES TO TAKE A 20 CUT IN PAY OVER THE WEEKEND EVEN GOV MARIO CUOMO JOINED IN THE SEARCH FOR AN INVESTOR OR BUYER TO SAVE THE POST WHILE DETAILS OF THE ARRANGEMENT ARE UNCLEAR IT IS EXPECTED THAT TOWERS A NATIONWIDE ACCOUNTS RECEIVABLE FINANCE AND COLLECTION COMPANY WILL EVENTUALLY TAKE FULL CONTROL OF THE NEWSPAPER A 48YEAROLD BROOKLYN NATIVE MR HOFFENBERG SAID THROUGH A SPOKESMAN THAT HE PLANNED TO OFFER THE PAPER'S UNIONS EQUITY STAKES IN THE POST AS WELL AS MAKE IMPROVEMENTS IN THE PAPER THE POST IS ASSURED IT WILL KEEP PUBLISHING AT LEAST FOR A BRIEF WHILE BECAUSE ACCORDING TO EXECUTIVES CLOSE TO THE NEGOTIATIONS MR HOFFENBERG HAS GUARANTEED THE PAPER'S CREDIT TO BANKERS TRUST CO THE POST'S PRIME LENDER BANKERS TRUST HAD NO COMMENT LAST NIGHT BUT IT IS EXPECTED TO GO ALONG WITH MR HOFFENBERG'S INVOLVEMENT WITH THE NEWSPAPER BANKERS TRUST BROUGHT ON THE CRISIS LAST WEEK WHEN IT REFUSED TO EXTEND THE PAPER'S LINE OF CREDIT WHICH HAD GROWN TO 6 MILLION THE CUTOFF CAME AFTER THE POST HAD DISAPPOINTING ADVERTISING REVENUE DURING THE CRUCIAL CHRISTMAS SEASON THE PAPER THEN SAID IT WAS IN A CASHFLOW CRISIS UNSURE IT COULD EVEN MEET THIS WEEK'S PAYROLL IT IS UNCLEAR HOW MUCH MONEY MR HOFFENBERG IS INVESTING BUT BY LATE LAST NIGHT IT APPEARED HIS INVESTMENT COULD KEEP THE PAPER RUNNING AT LEAST THROUGH THE WEEK HIS INVOLVEMENT CAME JUST AFTER MOST OF THE POST'S EMPLOYEES HAD AGREED TO PAY CUTS AND THE PAPER HAD RAISED ITS PRICE A DIME TO 50 CENTS MR KALIKOW HAD HOPED THE WAGE CUT AND PRICE INCREASE WOULD PERSUADE BANKERS TRUST TO ALLOW HIM A GRACE PERIOD IN WHICH TO FIND AN INVESTOR OR NEW OWNER THINKING THEY COULD EARN A CREDIT EXTENSION FOR THE PAPER POST EXECUTIVES WERE STUNNED BY BANKERS TRUST'S HARDLINE STANCE OVER THE WEEKEND BANKERS TRUST DIDN'T AGREE WITH OUR PROJECTIONS THEY WANTED TO PROTECT THEIR RECEIVABLES A POST EXECUTIVE SAID THE POST HAS ABOUT 8 MILLION IN RECEIVABLES LARGELY UNPAID BILLS FROM THE PAPER'S ADVERTISERS THOSE RECEIVABLES WON'T BE WORTH MUCH IF THE PAPER CLOSES BUT SOURCES CLOSE TO BANKERS TRUST IN THE NEGOTIATIONS SAID THE BANK HAD NEVER LINKED MR KALIKOW'S WAGE CUT AND PRICE INCREASE TO ANY ASSURANCES OF EXTENDING THE PAPER CREDIT BANKERS TRUST HAS PROVIDED SUPPORT FOR MORE THAN A YEAR BUT IT DECIDED IT WAS NO LONGER PRUDENT TO INCREASE ITS EXPOSURE FURTHER THE EXECUTIVE SAID 9301250013 930125 MANY WORRY ABOUT ILLEGAL HAND THAT ROCKS THE CRADLE A WALL STREET JOURNAL NEWS ROUNDUP SUDDENLY WORKING PARENTS ARE COMING OUT OF THE CLOSET ZOE BAIRD'S WITHDRAWAL AS ATTORNEY GENERAL NOMINEE HAS TRIGGERED GUILT AMONG MANY WHO LIKE HER EMPLOY ILLEGAL IMMIGRANTS AS NANNIES OR PAY THEIR HOUSEHOLD HELP CASH UNDER THE TABLE SKIPPING SOCIAL SECURITY TAXES NO LONGER COMFORTABLE WITH THE EXCUSE THAT EVERYONE DOES IT AND WORRIED THAT THEIR REPUTATIONS COULD BE HURT THEY'RE RUSHING TO ATTORNEYS AND ACCOUNTANTS FOR ADVICE ON HOW TO COME CLEAN THERE'S A ZOE BAIRD SCARE ERUPTING SAYS MICHAEL MAGGIO A WASHINGTON IMMIGRATION LAWYER WHO IN RECENT DAYS HAS RECEIVED NUMEROUS CALLS FROM PROFESSIONALS WORRIED THAT THEY'LL BE EXPOSED ADDS BRIAN ROHAN AN EDITOR AT THE IRISH VOICE NEWSPAPER IN NEW YORK THE FLAP HAS CERTAINLY PUT THE FEAR OF GOD IN PEOPLE IT'S GOING TO BE TOUGHER TO FIND A JOB FOR UNDOCUMENTED WORKERS MANY OF WHOM ARE OUR READERS CHRISS STREET AN INVESTMENT BANKER IN CORONA DEL MAR CALIF AND HIS WIFE VICTORIA USED TO EMPLOY ILLEGAL IMMIGRANTS FROM MEXICO AND CENTRAL AMERICA TO CARE FOR THEIR THREE CHILDREN AND CLEAN THEIR HOME BUT NO LONGER DO SO WE'RE NOT TRYING TO BE HOLIER THAN THOU BUT THESE PEOPLE ARE REALLY CRIMINALS SAYS THE 42YEAROLD MR STREET THEY'RE GOING TO BE DEPORTED IN THE PAST HE ADMITS HE AND HIS WIFE NEVER BOTHERED TO DETERMINE THE STATUS OF THEIR NANNIES AND MAIDS WE DIDN'T WANT TO KNOW AND CONVENIENTLY WE DIDN'T ASK PAYING THEIR HELP IN CASH THE STREETS HAVE SWITCHED TO AN INDEPENDENT MAID SERVICE THAT HANDLES BOTH IMMIGRATION ISSUES AND TAX WORK KELLY FISHER PRESIDENT OF NORTH SHORE NANNIES INC IN CHICAGO SAYS THAT IN RECENT DAYS NEW CLIENTS HAVE SPECIFICALLY REQUESTED US CITIZENS NOT FOREIGNERS SOME FEAR THEY CAN'T TRUST AGENCIES TO SCREEN OUT ILLEGAL IMMIGRANTS IN ATLANTA A TELEPHONE OPERATOR WITH THE INTERNAL REVENUE SERVICE SAYS SHE RECEIVED AT LEAST 10 CALLS LATE LAST WEEK FROM NERVOUS EMPLOYERS WORRIED ABOUT NOT PAYING SOCIAL SECURITY TAXES FOR THEIR NANNIES AND ON LINE AT DOWNTOWN BOSTON'S SOCIAL SECURITY ADMINISTRATION OFFICE ON FRIDAY AFTERNOON WERE A COUPLE THEIR TWO YOUNG CHILDREN AND 16YEAROLD EUROPEAN BABYSITTER WHO'D WORKED FOR THE FAMILY FOR A YEAR AND WAS APPLYING FOR A SOCIAL SECURITY CARD WE WANT TO DO THIS CORRECTLY SAID THE FATHER A BUSINESSMAN WHO WOULDN'T GIVE HIS FULL NAME ALSO CONCERNED ARE ARMIES OF PEOPLE WHO HAVE WEEKLY HOUSE CLEANERS GARDENERS COOKS OR OCCASIONAL NIGHTTIME BABYSITTERS AND WHO MAY NEVER BEFORE HAVE REALIZED THEY'RE SUBJECT TO AN ARRAY OF TAX RULES THE SOCIAL SECURITY TAX REQUIREMENT APPLIES TO ANY HOUSEHOLD EMPLOYEES PAID MORE THAN 50 A QUARTER EMPLOYERS WHO PAY MORE THAN 1000 A QUARTER MUST ALSO PAY FEDERAL UNEMPLOYMENT TAX AS WELL AS VARIOUS STATE TAXES ALL THESE YEARS I THOUGHT I WAS IN THE CLEAR WITH MY HOUSE CLEANER BECAUSE I THOUGHT SHE WAS AN INDEPENDENT CONTRACTOR SAYS ONE NEW YORKER WHO DECLINED TO BE IDENTIFIED YOU'D HAVE TO BE NUTS TO HANDLE ALL THAT PAPERWORK FOR SOMEONE WHO COMES IN A MORNING A WEEK BUT AM I GOING TO BE LIABLE TO SOME KIND OF BIG BILL WITH INTEREST AND PENALTIES SOME TIME DOWN THE ROAD SHE WORRIES NO ONE EXPECTS MASS CONFESSIONS THE IRS ESTIMATES THAT ABOUT TWO MILLION FAMILIES EMPLOY DOMESTIC WORKERS BUT ONLY ONEQUARTER OF THEM FILE REQUIRED TAXES WHILE THE COSTS OF NONCOMPLIANCE CAN BE ENORMOUS THE PENALTY FOR FAILURE TO PAY SOCIAL SECURITY TAX CAN BE 100 OF THE TAX DUE PLUS THE TAX ITSELF AND INTEREST THERE HAS BEEN LITTLE ENFORCEMENT NOR HAS THE IMMIGRATION AND NATURALIZATION SERVICE MADE THE SEARCH FOR ILLEGAL NANNIES AND MAIDS A PRIORITY ZOE BAIRD IS JUST SOMEBODY WHO GOT CAUGHT SAYS GEORGE HANDELSMAN AN IMMIGRATION LAWYER IN ATLANTA WHO DOESN'T EXPECT A NATIONWIDE CHANGE OF HEART EVERYBODY WANTS THE CHEAP LABOR NOBODY WANTS TO ADMIT IT MOREOVER FEW PARENTS ARE APT TO FIRE CHERISHED NANNIES WHO'VE ESTABLISHED CLOSE TIES WITH THEIR CHILDREN THERE'S A TREMENDOUS INTIMACY IN HAVING SOMEONE WORK IN YOUR HOME AND PARENTS TYPICALLY LOOK FOR PERSONAL CHEMISTRY ABOVE ALL SAYS ROBERT MANN OWNER OF THE SANDRA TAYLOR EMPLOYMENT AGENCY IN BEVERLY HILLS CALIF AGREES ONE NEW YORK MOTHER WHO EMPLOYS AN ILLEGAL POLISH IMMIGRANT TO CARE FOR HER EIGHTYEAROLD SON THE ONLY JOB SHE CAN GET IS UNDER THE TABLE AND SHE'S A WONDERFUL CAREGIVER STILL HIRING PRACTICES IN THE HOME HAVE OVERNIGHT BECOME A LITMUS TEST OF CHARACTER MUCH AS DRUGS AND DRAFT STATUS HAVE BEEN INDEED OVER THE WEEKEND TWO REPUBLICAN CANDIDATES FOR GOVERNOR IN NEW JERSEY CHRISTINE TODD WHITMAN AND W CARY EDWARDS ADMITTED THEY'D EMPLOYED ILLEGAL ALIENS IN THEIR HOMES TO CARE FOR CHILDREN AND AN ELDERLY PARENT AND FAILED TO PAY SOCIAL SECURITY TAXES ON THEIR WAGES ANYONE WITH POLITICAL ASPIRATIONS IS GOING TO SAY THEY CAN'T AFFORD TO BREAK THE LAW ANYMORE SAYS MARIANNA BAGGE DIRECTOR OF THE NATIONAL ACADEMY OF NANNIES IN DENVER EXECUTIVES WON'T BE EXEMPT EITHER YOU CAN BET THAT A LOT OF CHIEF EXECUTIVES HAVE BEEN LYING AWAKE WORRIED ABOUT THIS AND NOW THERE WILL BE SOME QUESTIONS ASKED OF THEIR SENIOR TEAMS SAYS PATRICIA COOK MANAGING DIRECTOR OF AT KEARNEY INC IN NEW YORK WHILE CEOS ARE UNLIKELY TO POLICE MIDDLE MANAGERS TOP EXECUTIVES WHO REPRESENT THEIR COMPANIES IN THE PUBLIC EYE WILL BE TOLD TO CLEAN UP THEIR ACTS SHE SAYS REPUTATIONS ON THE LINE ALSO ON THE LINE ARE ATTORNEYS AND ACCOUNTANTS WHOSE PROFESSIONAL REPUTATIONS REST ON THEIR ADHERENCE TO THE LAW ONE WASHINGTON ACCOUNTANT SAYS HE'S SUDDENLY NERVOUS ABOUT A PANAMANIAN MAN WHO CLEANS HIS HOUSE ONCE A WEEK I DON'T KNOW IF MY WIFE ASKED HIM FOR HIS GREEN CARD HE DOESN'T SPEAK VERY GOOD ENGLISH HE SAYS ADDING THAT AS SOON AS THE ZOE BAIRD STORY CAME UP I ASKED MY WIFE IF WE HAVE A PROBLEM IF SOMEONE HAD ME BEFORE A SENATE COMMITTEE I SUSPECT I WOULDN'T HAVE A SOLID CASE WITH WHAT I KNOW NOW OTHERS WHO'VE FELT TINGES OF GUILT ABOUT THEIR ILLEGAL ARRANGEMENTS WITH NANNIES AND MAIDS ARE BEING NUDGED INTO ACTION ONE NEW YORK EDITOR WHO'D PLANNED TO FILE SOCIAL SECURITY TAXES FOR HER AMERICAN NANNY BUT HADN'T GOTTEN AROUND TO IT SAYS THIS HAS PUT IT INTO THE ACTIVE FILE MANY NANNIES AND OTHER DOMESTICS DON'T WANT THEIR EMPLOYERS TO BE LEGITIMATE BECAUSE THEY EARN SO LITTLE THEY WANT TO POCKET IT ALL AND NOT PAY THEIR OWN TAXES BUT THOSE WHO'VE FOLLOWED THE LAW ARE ANGRY THAT IT TOOK ZOE BAIRD TO FORCE THE ISSUE JUNE SIMON A 63YEAROLD PITTSBURGH NANNY SAYS SHE HAS ALWAYS ASKED EMPLOYERS TO PAY SOCIAL SECURITY ON HER WAGES BECAUSE IT'S THE RIGHT THING TO DO AND SHE WANTS SOMETHING TO FALL BACK ON IN LATER YEARS ONE COUPLE SHE WORKED FOR REFUSED AND SHE LEFT AFTER A YEAR WITH BAD FEELINGS I WAS TOLD I COULD SUE THEM BUT I DIDN'T WANT TO GET INTO THAT AT TAX TIME SHE SAYS I ALWAYS GET SOCKED BUT WOULDN'T THINK OF NOT PAYING UP COMING CLEAN IS APT TO BE EXPENSIVE THE IRS DOESN'T GRANT AMNESTY TO FAMILIES WHO ADMIT THEY'VE BEEN NEGLIGENT IN PAYING TAXES THE PERSON WILL HAVE TO PAY ALL BACK TAXES PENALTIES AND INTEREST BUT WE WON'T PROSECUTE SAYS IRS SPOKESMAN WILSON FADELY THE SITUATION IS STICKIER WHEN DEALING WITH ILLEGAL IMMIGRANTS AN EMPLOYER MUST GET CERTIFICATION FROM THE LABOR DEPARTMENT AND THEN FILE A WORKVISA PETITION WITH THE INS BUT THE GOVERNMENT GRANTS JUST 10000 VISAS A YEAR TO UNSKILLED WORKERS SO THE PROCESS TYPICALLY TAKES FOUR OR FIVE YEARS ACCORDING TO THE INS AND DURING THAT TIME THE ILLEGAL IMMIGRANT ISN'T SUPPOSED TO WORK AND FACES DEPORTATION THE NEW AWARENESS OF THE PERVASIVENESS OF UNDERGROUND DOMESTIC EMPLOYMENT COULD PROMPT A PUSH FOR REFORM ON IMMIGRATION AS WELL AS TAX LAWS THERE'S A LOT THAT CAN BE DONE TO EASE TAX FILINGS SAYS THOMAS P OCHSENSCHLAGER A WASHINGTON PARTNER WITH ACCOUNTANTS GRANT THORNTON AMONG THE SUGGESTIONS FEWER FORMS AND LESS FREQUENT FILINGS 9301250012 930125 WORK FORCE CUT OF 10 PLANNED BY MCDONNELL COMMERCIAL AIRCRAFT UNIT IS TO BEAR THE BRUNT STOCK INCREASES 550 BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP PLANS TO REDUCE THE SIZE OF ITS WORK FORCE BY 10 OR 8700 POSITIONS AS PART OF A CAMPAIGN TO SLASH COSTS CHAIRMAN JOHN F MCDONNELL SAID IN AN INTERVIEW INCLUDED IN THE CUTS WILL BE A REDUCTION OF 4000 TO 5000 JOBS AT ITS COMMERCIAL AIRCRAFT UNIT WHICH THE COMPANY ANNOUNCED TO EMPLOYEES FRIDAY THE ST LOUISBASED COMPANY THE NATION'S LARGEST DEFENSE CONTRACTOR HAS BEEN CUTTING EMPLOYMENT SHARPLY BECAUSE OF DECLINING US DEFENSE SPENDING CONTRACTS SEVERELY SLACKENED AIRLINER PRODUCTION AND A COMPANY CAMPAIGN TO INCREASE EFFICIENCY SINCE THE END OF 1991 EMPLOYMENT HAS FALLEN BY 27 OR ABOUT 21700 JOBS TO 87400 WORKERS THE CUTBACKS IN THE YEAR AHEAD WILL INCLUDE LARGESCALE LAYOFFS AND REDUCTIONS THROUGH ATTRITION MR MCDONNELL ALSO SAID THAT THE COMPANY WILL SIMULTANEOUSLY CONTINUE TO LOOK FOR WAYS TO FURTHER CONSOLIDATE ITS PLANTS AND OFFICES ONCE THE IMPENDING ROUND OF EMPLOYMENT CUTS IS IN PLACE HE SAID THEN WE THINK WE'LL BE FAIRLY STABLE HE ADDED HOWEVER YOU NEVER KNOW FOR SURE SOME INDUSTRY EXPERTS WORRY THAT SUCH DEEP CUTS DISPERSE TOO MUCH PRODUCTION AND MANAGEMENT EXPERTISE MAKING IT DIFFICULT TO REASSEMBLE IN BETTER TIMES HOWEVER MCDONNELL DOUGLAS MANAGERS SAID THEY DO NOT EXPECT TO CONFRONT THAT PROBLEM WHEN SOME OF THEIR BUSINESSES EVENTUALLY RECOVER THE COMPANY'S DOUGLAS AIRCRAFT CO COMMERCIAL AIRPLANE SUBSIDIARY WHICH HAS TRIMMED 21000 JOBS IN THE PAST THREE YEARS WILL BEAR THE LARGEST SINGLE SHARE OF THE JOB CUTS SAID MR MCDONNELL THE 19000WORKER SUBSIDIARY INFORMED EMPLOYEES FRIDAY THAT AS MANY AS 5000 MORE JOBS WILL BE LOST DURING 1993 IN OTHER DIVISIONS COMPANY MANAGERS ARE HOPEFUL THAT THEY CAN TRIM THOUSANDS MORE SLOTS BY ATTRITION THROUGH NORMAL RETIREMENTS EARLY RETIRMENT INCENTIVE PROGRAMS AND RESIGNATIONS PERHAPS RELYING ON THOSE MEANS FOR AS MUCH AS HALF OF THE TOTAL REDUCTION A SPOKESMAN SAID THE NEW CUTS WILL BE LARGELY IN THE RANKS OF PRODUCTION WORKERS WHILE PAST CUTBACKS IN EMPLOYMENT HAVE SHAVED SUBSTANTIALLY FROM THE RANKS OF MANAGERS AND OTHER WORKERS WHO DON'T HAVE A DIRECT HAND IN PRODUCTION THE COMPANY'S 28000WORKER EASTERN US OPERATION WHICH MAKES THE F15 AND FA18 FIGHTER JETS APACHE HELICOPTERS AND A VARIETY OF MISSILES EXPECTS TO TRIM AN ADDITIONAL 4 OF ITS LABOR FORCE SAID JOHN P CAPELLUPO MCDONNELL DOUGLAS EXECUTIVE VICE PRESIDENT THAT DIVISION ALREADY HAS CHOPPED EMPLOYMENT FROM A PEAK OF 43000 WORKERS IN RECENT YEARS THE CUTBACKS AT THE COMMERCIAL JETLINER SUBSIDIARY WHICH IS IN LONG BEACH CALIF REFLECT PLUMMETING PRODUCTION RATES THERE THE SUBSIDIARY HAS BEEN HIT HARD BY SAGGING ORDERS STEMMING FROM THE WORST RECESSION EVER IN THE AIRLINE INDUSTRY AND FROM ITS WEAK MARKET POSITION WHILE DOUGLAS AIRCRAFT PRODUCED 42 OF ITS BIG MD11 TRIJETS LAST YEAR IT EXPECTS TO CUT PRODUCTION TO ABOUT 25 ANNUALLY BY THE END OF 1994 AFTER THAT MANAGERS HOPE TO RETURN TO FASTER RATES OF PRODUCTION THE SUBSIDIARY MANUFACTURED 84 OF ITS SMALLER TWINENGINE MD80 AIRLINERS IN 1992 AND IT EXPECTS TO CUT PRODUCTION TO 40 TO 50 DURING 1993 MANAGERS SAY THE CUTS IN EMPLOYMENT SHOULD MAKE ALL THEIR OPERATIONS PROFITABLE EVEN AT LOW PRODUCTION RATES THE COMPANY LAST WEEK REPORTED THAT EXCLUDING ACCOUNTING CHANGES IT HAD INCOME FOR 1992 OF 161 MILLION OR 415 A SHARE DOWN NEARLY 64 FROM NET OF 423 MILLION OR 1103 A SHARE IN 1991 SALES FELL 38 TO 1738 BILLION BUT MR MCDONNELL SAID THAT THE WORST IS BEHIND THE COMPANY AND THAT 1993 WILL BRING DISTINCT IMPROVEMENTS IN EARNINGS AND THE COMPANY'S BALANCE SHEET IN RESPONSE SOME ANALYSTS RAISED THEIR 1993 EARNINGS ESTIMATES AND MCDONNELL DOUGLAS SHARES ROSE 550 APIECE TO 62 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY IT HAD GONE UP 250 A SHARE THE DAY BEFORE SEPARATELY MCDONNELL DOUGLAS SAID IT HAS REACHED A PROPOSED SETTLEMENT WITH THE FEDERAL EQUAL EMPLOYMENT OPPORTUNITY COMMISSION OVER ALLEGED AGE DISCRIMINATION IN THE COMPANY'S LAYOFFS OF SOME 700 WORKERS TWO YEARS AGO THOUGH A COMPANY SPOKESWOMAN DECLINED TO COMMENT ON THE AMOUNT OF THE SETTLEMENT MCDONNELL DOUGLAS SAID LAST WEEK IN ITS EARNINGS REPORT THAT IT HAD RESERVED ABOUT 20 MILLION FOR THE SETTLEMENT OF AN UNSPECIFIED SUIT RELATED TO THE LAYOFFS THE COMMISSION ALLEGES THAT MCDONNELL DOUGLAS DISCRIMINATED AGAINST OLDER EMPLOYEES BY INTENTIONALLY LAYING OFF WORKERS AGE 55 OR OLDER WHEN IT TERMINATED 10000 EMPLOYEES TWO YEARS AGO THE COMMISSION ALSO CLAIMS THAT MCDONNELL DOUGLAS HIRED YOUNGER WORKERS EVEN WHILE LAYING OFF OLDER ONES MCDONNELL DOUGLAS HAS DENIED THERE WAS ANY DISCRIMINATION IN THE CUTBACKS 9301250011 930125 FREEMARKET MODEL CHILE'S ECONOMY ROARS AS EXPORTS TAKE OFF IN POSTPINOCHET ERA LATIN AMERICA'S TIGER' NOW GOES AFTER THE NEXT STEP FREE TRADE WITH THE US LEAVING THIRD WORLD BEHIND BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUIN CHILE PERCHED ATOP A HILL IN CHILE'S ROLLING WINE VALLEY RAIMUNDO VALENZUELA SURVEYS THE LANDSCAPE LIKE A CONQUISTADOR AS HE TRIES TO BRING TO LIFE THE ARCHITECT'S BLUEPRINT HE'S CLUTCHING HERE WE'LL BUILD A CHATEAU HE SAYS POINTING TO A CLEARING OVER THERE THERE'LL BE A PARK AND HERE HE SAYS POINTING TO TWO LARGE HOLES DUG INTO THE GROUND WE'RE BUILDING CELLARS ONE FOR STAINLESSSTEEL VATS AND ONE FOR OAK BARRELS MR VALENZUELA IS GENERAL MANAGER OF WINEMAKER VINA SANTA RITA AND THE BLUEPRINT IS THE 4 MILLION PLAN FOR VINA CARMEN A UNIT SANTA RITA PLANS TO SPIN OFF FLOAT ON THE STOCK MARKET AND TURN INTO A BIG EXPORTER THE NEW WINERY IS PART OF A 27 MILLION EXPANSION PLAN TO TURN SANTA RITA AND ITS AFFILIATES INTO A WORLDWIDE COMPETITOR AND TURN THE SLEEPY VALLEY INTO A TOURIST ATTRACTION SAYS MR VALENZUELA WE'RE THINKING BIG SO IS THE REST OF CHILE A SMALL COUNTRY WITH BIG AMBITIONS WHILE ATTENTION HAS FOCUSED ON THE TRANSFORMATION OF MEXICO AND THE REBIRTH OF ARGENTINA CHILE HAS LATIN AMERICA'S MOST VIBRANT ECONOMY SO SUCCESSFUL THAT AN ARGENTINE BUSINESS MAGAZINE RECENTLY RAN A COVER STORY TITLED CHILE INC AND WHILE THE INDUSTRIALIZED WORLD FRETS ABOUT RECESSION AND LATIN AMERICA WORRIES ABOUT DEBT AND INFLATION THE TALK HERE IS OF LEAVING THE THIRD WORLD BEHIND CHILE HAS THE BEST OPPORTUNITY IN LATIN AMERICA TO BE THE FIRST COUNTRY TO DEFEAT POVERTY AND UNDERDEVELOPMENT SAYS FELIPE LARRAIN AN ECONOMIST AT THE CATHOLIC UNIVERSITY OF CHILE INDEED CHILE IS QUIETLY COMPLETING WHAT IS PERHAPS ONE OF THE WORLD'S MOST PROFOUND ECONOMIC TRANSFORMATIONS THE FIRST LATIN AMERICAN NATION TO UNDERTAKE STRUCTURAL REFORMS IT IS NOW SAVORING THE FRUITS ITS ECONOMY GREW BY 97 IN 1992 AND THE BOOM IS SO VISIBLE THAT AN INVESTMENT BANKER NAMED MARIO LOBO HAS A GAME GOING IN HIS OFFICE TO SEE WHO CAN COUNT THE MOST CONSTRUCTION CRANES IN THE NEIGHBORHOOD CHILEAN COMPANIES MANY OF THEM PRIVATIZED IN THE PAST DECADE ARE IN TURN SNAPPING UP ASSETS IN NEIGHBORING ARGENTINA AS IT SELLS OFF A HOST OF STATE COMPANIES EXPORTS ARE SURGING AND CHILE RUNS A LARGE SURPLUS WITH JAPAN WHICH IS ITS LEADING TRADE PARTNER CHILE RECENTLY BECAME THE FIRST IN LATIN AMERICA TO RECEIVE AN INVESTMENTGRADE RATING ON THEIR DEBT FROM STANDARD & POOR'S AND FOREIGN INVESTMENT ROSE 22 TO 138 BILLION LAST YEAR CHILE SAYS BRAZILIAN BANKER IGOR CORNELSEN WITH A TOUCH OF ENVY IS BECOMING LATIN AMERICA'S TIGER AND THE NEXT PLACE IT WANTS ITS ROAR TO BE HEARD IS THE US HAVING BEEN TOLD BY GEORGE BUSH THAT IT WOULD BE NEXT AFTER MEXICO FOR A FREETRADE AGREEMENT CHILE WANTS TO HOLD PRESIDENT CLINTON TO THIS TURNING CHILE INTO AN IMPORTANT TEST OF THE NEW ADMINISTRATION'S POLICY TOWARD LATIN AMERICA BY REACHING A FREETRADE AGREEMENT WITH CHILE ANALYSTS SAY THE CLINTON ADMINISTRATION COULD PROVIDE A STRONG INCENTIVE FOR LATIN AMERICAN COUNTRIES TO CONTINUE ALONG THE PATH OF DEMOCRACY AND THE FREE MARKET CHILE'S BIGGEST SELLING POINT IS ITS DEMONSTRATION EFFECT SAYS DAVID GALLAGHER A SANTIAGO CONSULTANT IT'S IN THE INTEREST OF THE US THAT THERE BE SOME DEVELOPED COUNTRY IN LATIN AMERICA THEN OTHER LATIN AMERICAN PRESIDENTS WILL HAVE TO EXPLAIN WHY THEY DON'T PERFORM LIKE CHILE PRESIDENT CLINTON IN NOVEMBER EXPRESSED INTEREST IN REACHING A TRADE AGREEMENT WITH CHILE ALTHOUGH NEGOTIATIONS HAVEN'T BEGUN A FEW YEARS AGO HEAPING PRAISE ON CHILE WAS UNTHINKABLE ITS ECONOMIC SUCCESS WAS OVERSHADOWED BY THE POLITICAL HORROR STORY OF THE DICTATORSHIP OF GEN AUGUSTO PINOCHET WHOSE 17YEAR RULE WAS MARKED BY MASSIVE HUMANRIGHTS VIOLATIONS INCLUDING AT LEAST 2025 DEATHS OR DISAPPEARANCES BUT PRESIDENT PATRICIO AYLWIN CONFOUNDING PREDICTIONS THAT HIS DEMOCRATIC ELECTION IN 1989 WOULD LEAD TO A WAVE OF POPULISM HAS STAYED THE COURSE OF AUSTERITY AND ECONOMIC REFORM SUDDENLY CHILE SWITCHED FROM PARIAH TO MODEL ATTRACTING MANY LATIN AMERICANS AND EASTERN EUROPEANS FOR CRASH COURSES ON HOW TO COMBINE DEMOCRACY AND FREE MARKETS DEMOCRACY HAS CONSOLIDATED THE MODEL SAYS MR LARRAIN THE ECONOMIST IT'S CLEAR NOW THAT THE REJECTION OF PINOCHET ISN'T THE REJECTION OF THE ECONOMIC MODEL THAT MODEL HAS LED TO RESULTS SO REMARKABLE THAT SOME HERE JOKE THAT IF THE US AND CHILE REACH A FREETRADE ACCORD THE FIRST THING CHILE SHOULD EXPORT IS A TEAM OF ECONOMISTS WE'RE SITTING IN AN ECONOMY THAT'S LIKE PINCH ME IS IT REAL' SAYS A US TRADE OFFICIAL HERE THIS ISN'T A LATINSTYLE COUNTRY ITS ECONOMIC INDICATORS ARE CERTAINLY UNLATIN 1992 MARKED THE NINTH CONSECUTIVE YEAR OF GROWTH AND THE GROSS DOMESTIC PRODUCT HAS MORE THAN DOUBLED IN TWO DECADES TO 36 BILLION LAST YEAR INFLATION EASED TO 127 IN 1992 FROM 187 IN 1991 THOUGH THERE'S A LOT OF UNDEREMPLOYMENT THE UNEMPLOYMENT RATE HAS FALLEN TO 48 OF THE WORK FORCE AND SOME BUSINESSES COMPLAIN OF A SHORTAGE OF SKILLED LABOR CHILE EXPECTS TO POST A 1992 TRADE SURPLUS OF 680 MILLION A SHARP DROP FROM 1991'S 15 BILLION BUT EXPORTS ARE CONTINUING TO GROW GOVERNMENT ACCOUNTS ARE IN SURPLUS INVESTMENT IN 1992 GREW BY ABOUT 20 SOME PEOPLE SAY WE'RE GROWING TOO FAST SAYS FINANCE MINISTER ALEJANDRO FOXLEY MY WORRIES ARE MUCH LESS IMPORTANT WHEN I LOOK AT THE FUNDAMENTALS WE'RE NOT GOING THROUGH THE TYPICAL LATIN AMERICAN CONSUMPTION BOOM THIS IS A HEALTHY GROWTH BASED ON EXPORTS AND INVESTMENT THERE ARE STILL WEAKNESSES URBAN POVERTY IS LESS SHOCKING THAN IN BRAZIL PERU OR VENEZUELA BUT IT'S ESTIMATED THAT ABOUT A THIRD OF CHILE'S 134 MILLION INHABITANTS LIVE IN POVERTY THERE ARE SEVERAL UNEQUAL CHILES SAYS ARISTIDES TORCHE AN ECONOMICS PROFESSOR AT THE CATHOLIC UNIVERSITY QUALITY OF LIFE HAS IMPROVED EVEN FOR THE POOR BUT THEY REMAIN POOR IN ADDITION CHILE'S INFRASTRUCTURE IS IN BAD SHAPE AND ECONOMISTS EXPECT BOTTLENECKS SHORTLY IF RAPID GROWTH CONTINUES INDEXING OF WAGES AND SUCH THINGS AS LOAN BALANCES TO INFLATION MAKES IT HARD TO CUT THE INFLATION RATE TO ONE DIGIT AND CHILE'S VERY SUCCESS CONTAINS THE SEEDS OF POTENTIAL TROUBLE THE INFLUX OF FOREIGN CAPITAL HAS BEEN SUCH THAT IT THREATENS TO OVERVALUE THE PESO AND THUS MAKE EXPORTS THE ENGINE OF CHILE'S GROWTH LESS COMPETITIVE IN PRICE BUT MOST AGREE THAT CHILE'S PROBLEMS ARE THE SORT THAT ITS NEIGHBORS WOULD LIKE TO HAVE AND TO NEIGHBORS CURRENTLY IN THE THROES OF REFORM CHILE'S CASE SHOWS HOW STICKING TO PAINFUL MEASURES CAN YIELD REWARDS CHILE HAD NO SPECIAL ADVANTAGE SAYS MR CORNELSEN IT'S FAR AWAY HAS NO TECHNOLOGY ITS DEBTTOGDP RATIO WAS HUGE IT JUST CHOSE THE RIGHT ECONOMIC MODEL CHILE'S STORY SAYS ROBERTO FANTUZZI GENERAL MANAGER OF A KITCHENWARE COMPANY BEARING HIS NAME COULD BE CALLED DEATH AND RESURRECTION HE SPEAKS FROM EXPERIENCE BECAUSE HIS COMPANY IS A MICROCOSM OF CHILE'S WRENCHING METAMORPHOSIS FROM AN INWARDLOOKING SOCIALIST ECONOMY TO AN EXPORTORIENTED CAPITALIST ONE IN THE CHAOTIC DAYS OF SALVADOR ALLENDE'S MARXIST GOVERNMENT WHICH RULED FROM 1970 TO 1973 AND WAS MARKED BY FOURDIGIT INFLATION AND DAILY DEMONSTRATIONS AGAINST SHORTAGES OF BASIC NECESSITIES FANTUZZI WAS TAKEN OVER BY ITS WORKERS ITS OWNERS EXPELLED WITHOUT INDEMNITY WE LOST EVERYTHING 50 YEARS OF WORK SAYS THE BURLY 60YEAROLD MR FANTUZZI WE FELT THIS WAS A COMMUNISTLIKE COUNTRY WITHOUT RETURN WHEN MR ALLENDE WAS OVERTHROWN IN A BLOODY MILITARY COUP IN 1973 THE PENDULUM SWUNG BACK HARD GEN PINOCHET'S GOVERNMENT RETURNED THE 600 EXPROPRIATED COMPANIES TO THEIR OWNERS BUT IT ALSO ADOPTED AUSTERITY MEASURES THAT SO REDUCED DEMAND THAT FANTUZZI SIMPLY CLOSED ITS PLANT FOR THREE MONTHS WORSE WAS TO FOLLOW STARTING IN 1976 CHILE BEGAN IMPLEMENTING DEEP FREEMARKET REFORMS INCLUDING PRIVATIZING AND OPENING UP THE ECONOMY TO COMPETITION AT THE SAME TIME IT FROZE THE EXCHANGE RATE AND RAISED INTEREST RATES EVERY DAY IMPORTED GOODS WERE CHEAPER AND OURS WERE MORE EXPENSIVE BECAUSE OF INFLATION SAYS MR FANTUZZI WHO CALLS THIS PHASE A SECOND EXPROPRIATION THIS TIME BY FINANCIAL MEANS IN 1982 ALONE GDP FELL BY 141 HUNDREDS OF COMPANIES WENT BANKRUPT TO SURVIVE FANTUZZI CUT ITS STAFF TO 190 WORKERS FROM 500 CUT WAGES AND DIVERSIFIED FROM KITCHENWARE INTO WASHING MACHINES AND OTHER APPLIANCES LITTLE BY LITTLE THE ECONOMIC AND CORPORATE PICTURE CLEARED STARTING IN THE MID1980S THENFINANCE MINISTER HERNAN BUCHI DEVALUED THE CURRENCY TO MAKE CHILE'S PRODUCTS MORE AFFORDABLE TO FOREIGN BUYERS HE ALSO STEADILY LOWERED IMPORT TARIFFS WHILE DEREGULATING THE ECONOMY FORCING COMPANIES TO ADAPT TO COMPETITION OR DIE THE RESULT AT FANTUZZI WE EXPORTED NOTHING EIGHT YEARS AGO TODAY 27 OF OUR SALES OF ABOUT 15 MILLION ARE EXPORTED TO 20 COUNTRIES SAYS MR FANTUZZI THE COMPANY WHICH NOW EMPLOYS 350 PEOPLE HAS COMPLETED ITS FOURTH CONSECUTIVE YEAR IN THE BLACK PAINFUL AS IT WAS CHILE'S TRANSFORMATION BRED A CONSENSUS THAT THIS WAS THE RIGHT PATH FOR A SMALL ECONOMY WE BOUGHT THE IDEA AND FIRMLY BELIEVE IN IT SAYS ANDRES NAVARRO PRESIDENT OF SOFTWAREMAKER SONDA WHICH IS 49OWNED BY DIGITAL EQUIPMENT CORP YOU DON'T FIND ANY BIG LABOR OR SPECIALINTEREST GROUP AGAINST THE ROAD WE CHOSE IN THE PRESIDENTIAL ELECTIONS LATE THIS YEAR I DON'T SEE ANYBODY PROPOSING ANY BIG CHANGE THIS HAS SPAWNED A GENERATION OF COMPETITIVEMINDED BUSINESS PEOPLE CHILEAN ENTREPRENEURS HAVE SHOWN CAPACITY TO GO OUT LOOK FOR PRODUCT NICHES AND DO IT SAYS ANTHONY WYLIE GENERAL MANAGER OF FUNDACION CHILE A NONPROFIT GROUP THAT SEEKS TO BOOST EXPORTS CHILE'S WINE INDUSTRY EXEMPLIFIES THIS A DECADE AGO THIS CENTURYOLD INDUSTRY WAS DYING WITH LOCAL CONSUMPTION FALLING FAST BECAUSE OF CHILE'S ECONOMIC DISTRESS LED BY SUCH WINERIES AS CONCHA Y TORO AND SANTA RITA CHILEAN WINEMAKERS STARTED LOOKING ABROAD AT FIRST IT WASN'T TOO ENCOURAGING RODRIGO BUZETA SANTA RITA'S EXPORTS DIRECTOR REMEMBERS SPENDING A WEEK IN NEW YORK CALLING ON DISTRIBUTORS EVERYWHERE THE ANSWER WAS THE SAME NO WE'RE TOO BUSY WITH FRENCH AND CALIFORNIA WINES' HE SAYS CHILEANS LIKE HEAVY WINES OXIDIZED AND TASTING OF OLD WOOD BUT IN THE US IF YOU SEND A BOTTLE WITH OXIDATION THEY THROW IT IN YOUR FACE SAYS MR BUZETA SO WINEMAKERS SET ABOUT CHANGING OFTEN WITH THE HELP OF FOREIGN INVESTORS SUCH AS MEMBERS OF FRANCE'S ROTHSCHILD FAMILY WHO BOUGHT 50 OF LOS VASCOS CEMENT VATS TO FERMENT WINE WERE REPLACED BY AUTOMATICALLY COOLED STAINLESSSTEEL ONES OLD WOODEN BARRELS THAT GAVE RED WINE ITS HEAVY TASTE WERE REPLACED WITH OAK BARRELS FROM FRANCE AND THE US THAT IMPART A MORE DELICATE FRUITY FAVOR MANUAL PRESSES GAVE WAY TO PNEUMATIC ONES THE STANDARD YELLOW BOTTLES FOR CHARDONNAY TOOK THE PLACE OF CHILE'S GREEN ONES WINEMAKERS INTRODUCED NEW GRAPE VARIETIES THE RESULT CHILE OVERTOOK GERMANY TO BECOME THE THIRD BIGGEST WINE EXPORTER TO THE US BEHIND ITALY AND FRANCE TOTAL WINE EXPORTS IN 1992 ARE ESTIMATED AT 127 MILLION UP FROM 9 MILLION IN 1984 WHILE THESE FIGURES ARE A LONG WAY FROM CHILE'S ANNUAL 1 BILLION WORTH OF FRUIT EXPORTS WINEMAKERS EXPECT CONTINUED STRONG GROWTH AND SEE THIS AS A SIGN THAT THE COUNTRY IS MOVING TO MORE VALUEADDED EXPORTS LIKE FURNITURE AND CANNED GOODS TO COMPLEMENT TRADITIONAL EXPORTS OF COPPER FISH MEAL AND FRESH FRUIT CHILE'S GOVERNMENT IS NOW HOPING FOR A FREETRADE AGREEMENT WITH THE US TO LOCK IN ITS REFORMS AND PROVIDE A NEW BOOST ITS INTEREST IN SUCH A PACT HAS LESS TO DO WITH TRADE THAN INVESTMENT THOUGH WITH AN ACROSSTHEBOARD IMPORT TARIFF OF 11 AND EXPORTLED GROWTH CHILE WOULD DERIVE ONLY SMALL GAINS FROM A FREETRADE ACCORD CHILE RUNS A SMALL TRADE DEFICIT WITH THE US AND THE CHILEAN AMERICAN CHAMBER OF COMMERCE ESTIMATES THAT ANNUAL US EXPORTS TO CHILE COULD GROW TO 25 BILLION IN FIVE YEARS FROM ABOUT 16 BILLION IN 1991 BUT SAYS JOSE ANTONIO GUZMAN PRESIDENT OF CHILE'S CONFEDERATION OF PRODUCTION AND COMMERCE IF CHILE IS ACCEPTABLE AS A PARTNER TO THE US IT WILL DRAW THE ATTENTION OF INVESTORS A FREETRADE AGREEMENT CAN BRING IN INVESTMENT FROM THIRD COUNTRIES SEEKING ACCESS TO THE US MARKET SOME TROUBLE SPOTS WOULD LOOM FOR ANY TRADE NEGOTIATIONS THOUGH THE GOVERNMENT IS WAKING UP TO THE PROBLEM CHILE'S ENVIRONMENTAL STANDARDS ARE STILL LAX THEN THERE'S INTELLECTUAL PROPERTY THE US PHARMACEUTICAL INDUSTRY IS UNHAPPY THAT CHILE OFFERS ONLY 15YEAR PATENT PROTECTION NOT 20 AS IN MEXICO HOWEVER COMPARED WITH MEXICO THERE IS LESS DIRECT COMPETITION BETWEEN CHILE AND THE US AND SOME EXPORTS SUCH AS CHILE'S COUNTERSEASONAL FRUIT HARVESTS MAINLY GRAPES CHERRIES AND APPLES ARE EVEN COMPLEMENTARY US COMPANIES MIGHT SEE CHILE MORE AS A PLACE TO ESTABLISH A BASE FOR BUSINESS IN SOUTH AMERICA THAN AS A LOCATION FOR MEXICANSTYLE MAQUILADORAS FACTORIES THAT ASSEMBLE PRODUCTS FOR REEXPORT WITH OR WITHOUT FREE TRADE CHILE'S ECONOMIC OUTLOOK SEEMS BRIGHT CHILE IS DEFINITELY ON A ROLL AND ON A ROLL FOR THE FORESEEABLE FUTURE SAYS MR LOBO MANAGING DIRECTOR OF INVESTMENT BANK CELFIN I CAN SEE WHAT WOULD SLOW IT DOWN BUT NOT WHAT WOULD STOP IT 9301250010 930125 MERRILL LYNCH JAPAN PLANS TO CLOSE HALF OF RETAIL SALES OFFICES TOKYO MERRILL LYNCH & CO'S JAPANESE SUBSIDIARY WILL CLOSE HALF OF ITS RETAIL SALES OFFICES AND WILL SLASH EMPLOYMENT IN ITS PRIVATE CLIENT SALES DIVISION BY AS MUCH AS 20 A COMPANY OFFICIAL SAID A SPOKESMAN FOR MERRILL LYNCH JAPAN INC SAYS THE DECISION REFLECTS THE CONTINUING SLUMP IN THE JAPANESE SECURITIES INDUSTRY DAILY TURNOVER ON THE TOKYO STOCK EXCHANGE HAS FALLEN MORE THAN 80 SINCE 1988 SEVERELY CUTTING COMMISSION INCOME MANY SECURITIES FIRMS ARE LOSING MONEY AND OBSERVERS OF THE INDUSTRY BELIEVE THAT UNLESS RETAIL BUSINESS BOUNCES BACK A SIGNIFICANT SHAKEOUT IS IN THE OFFING THE SPOKESMAN SAID THE COMPANY WILL SHUT ITS RETAIL OFFICES IN THE CITIES OF KYOTO YOKOHAMA AND KOBE RETAIL OFFICES IN TOKYO OSAKA AND NAGOYA WILL REMAIN OPEN MERRILL LYNCH JAPAN HAS ABOUT 600 EMPLOYEES ABOUT 180 OF WHOM WORK IN PRIVATE CLIENT SALES THE COMPANY EXPECTS IT WILL CUT ABOUT 20 OF THAT SALES FORCE IN COMING MONTHS DEPENDING ON MARKET CONDITIONS THE SPOKESMAN SAID WE'RE REPOSITIONING OUR ORIENTATION IN JAPAN HE SAID ADDING THAT THE COMPANY WANTED TO CARRY OUT MORE INSTITUTIONAL BUSINESS MORE GLOBAL CAPITAL ACTIVITIES INCLUDING DERIVATIVE PRODUCTS SUCH AS FUTURES AND OPTIONS MERRILL LYNCH'S STRONG RETAIL ORIENTATION AND FULLSERVICE APPROACH TO THE SECURITIES BUSINESS HAS MADE IT THE ROLE MODEL FOR JAPANESE SECURITIES COMPANIES IN THE POSTWAR ERA ALL OF THE MAJOR JAPANESE FIRMS AND MANY OF THE SMALLER COMPANIES HAVE CONSCIOUSLY MODELED THEMSELVES ON MERRILL LYNCH THUS THE COMPANY'S DIMINISHED CONFIDENCE IN THE JAPANESE RETAIL SECURITIES BUSINESS IS LIKELY TO HAVE AN IMPACT ON SENIOR MANAGEMENT AT MANY JAPANESE SECURITIES FIRMS MANY JAPANESE SECURITIES HOUSES MUST CLOSE RETAIL OFFICES THIS YEAR SAID AN OFFICIAL AT ONE OF JAPAN'S LARGEST SECURITIES COMPANIES THE PERFORMANCE AT ALL OF THEM IS VERY POOR 9301250009 930125 GPA WINS PACT ON ORDER CUTS FROM JET FIRMS AIRBUS BOEING AND FOKKER ACCEPT BLOW IN BID TO AID LESSOR'S RECOVERY EFFORT BY JEFF COLE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL GPA GROUP PLC FINALLY WON AGREEMENT FROM MOST OF ITS JETAIRCRAFT SUPPLIERS TO MAKE SWEEPING CUTS IN ORDERS FROM THE IRISH LEASING COMPANY DEALING A GRUDGINGLY ACCEPTED SETBACK TO AIRBUS INDUSTRIE BOEING CO AND FOKKER NV IN ALL THOSE MANUFACTURERS AGREED TO LET GPA CHOP FIRM ORDERS TO LESS THAN 4 BILLION FROM NEARLY 11 BILLION GPA DEPUTY CHAIRMAN MAURICE FOLEY SAID THE AGREEMENTS ARE AN ESSENTIAL PART OF A LARGER GPA DRIVE TO RESTRUCTURE AND RECOVER ITS FINANCIAL HEALTH ITS RESTRUCTURING PLAN PRESENTED TO LENDERS ON FRIDAY CALLS FOR THE BANKERS TO DEFER ABOUT 1 BILLION IN PRINCIPAL PAYMENTS ON LOANS UNTIL LATE 1996 AND TO RELAX FINANCIAL TERMS IN ALL 130 BANKS ARE BEING ASKED TO AGREE TO THE NEW PACT WHICH GPA HOPES WILL ALLOW IT TO HALVE ITS ROUGHLY 55 BILLION IN DEBT WITHIN THREE YEARS BY SELLING ASSETS AT A PROFIT IF THE AGREEMENT ISN'T SIGNED BY EVERY BANK THE RESTRUCTURING COULD BE IMPERILED GPA'S TOP 23 BANKS EXPECT TO REVIEW THE ARRANGEMENT WITH REMAINING LENDERS THIS WEEK IN LONDON TEMPORARY LOAN WAIVERS EXPIRE MARCH 19 AND A PERMANENT AGREEMENT IS EXPECTED TO BE IN PLACE BY THEN AT THAT POINT GPA WOULD UNDERTAKE A 750 MILLION OFFERING IN THE US OF SECURITIES BACKED BY AIRPLANE LEASES TO MAKE UP FOR A FAILED ATTEMPT TO RAISE 1 BILLION IN EUROPE IN JUNE AN EXECUTIVE AT ONE OF GPA'S LARGEST BANKS SAID THE COMPANY HOPES TO FIND A MORE RECEPTIVE MARKET IN NEW YORK THAN IN LONDON THE OFFERING WOULD BE MANAGED BY LEHMAN BROTHERS A UNIT OF SHEARSON LEHMAN BROTHERS INC GPA IS ALSO CONTINUING TO TALK WITH ITS LARGEST EQUITY HOLDERS IN AN EFFORT TO RAISE 200 MILLION THROUGH A CONVERTIBLE STOCK OR BOND OFFERING PROGRESS HADN'T BEEN POSSIBLE ON THE FINANCIAL FRONT WITHOUT THE NEW AGREEMENT WITH THE AIRCRAFT MAKERS WHICH HAVE TENTATIVELY AGREED TO THE TERMS AND ARE EXPECTED TO APPROVE THEM AFTER A FINAL LEGAL REVIEW THE LONE HOLDOUT AMONG THE JETMAKERS IS ST LOUISBASED MCDONNELL DOUGLAS CORP ALTHOUGH IT APPEARS FOR NOW THAT GPA CAN PROCEED WITH ITS RESTRUCTURING WITHOUT AN AGREEMENT FROM THE WORLD'S THIRDLARGEST PRODUCER OF COMMERCIAL AIRLINERS AFTER MONTHS OF VIRTUALLY NO PROGRESS GPA AND MCDONNELL DOUGLAS ARE SAID BY PEOPLE CLOSE TO THE SITUATION TO BE EDGING TOWARD A NEW DIALOGUE ON THE LEASING COMPANY'S DESIRE TO DEFER SOME OF ITS 15 ORDERS FOR MD11 WIDEBODIES VALUED AT ABOUT 15 BILLION GPA ALSO HOLDS ORDERS FOR SMALLER MD80 TWIN JETS MR FOLEY SAID GPA HAS INITIALLED MEMORANDA OF UNDERSTANDING WITH BOEING AIRBUS AND DUTCH JETMAKER FOKKER TO SLASH FIRM ORDERS BY NEARLY 7 BILLION THAT'S A DRASTIC CUTBACK FROM JUNE WHEN THE COMPANY'S FIRM ORDERS STOOD AT 119 BILLION ALTHOUGH GPA SINCE HAS TAKEN DELIVERY OF MORE THAN 1 BILLION IN PLANES MR FOLEY SAID THAT OF 49 BILLION IN AIRCRAFT ORDERS SCHEDULED FOR DELIVERY THIS YEAR AND NEXT MORE THAN HALF WILL BE DEFERRED BUT HE DECLINED TO GIVE FURTHER DETAILS BOEING'S DEFERRALS INCREASE SEATTLEBASED BOEING SAID IT WILL REMOVE 26 GPA AIRCRAFTDELIVERY POSITIONS FROM ITS ANNOUNCED FIRMORDER LIST SINCE THOSE ORDERS ARE NOW SUBJECT TO RECONFIRMATION AT A LATER TIME THAT MEANS THE ORDERS ARE EFFECTIVELY CANCELED SINCE GPA STILL CAN FORGO DELIVERY ALTHOUGH IT MIGHT HAVE TO SACRIFICE DEPOSITS AND PROGRESS PAYMENTS A BOEING SPOKESMAN SAID THAT NONE OF THE JETS WHICH CARRY A TOTAL LIST PRICE OF ABOUT 14 BILLION HAD BEEN INCLUDED BY THE COMPANY IN ITS FINANCIAL BACKLOG OF OUTSTANDING ORDERS THE CUTS INCLUDE 11 SMALLER MODEL 737 JETS PLUS SEVEN MODEL 757S AND EIGHT MODEL 767 WIDEBODIES BOEING HAD ALREADY AGREED TO 38 DEFERRALS IN AN EARLIER ROUND OF TALKS LAST YEAR MEANING IT HAS GIVEN GROUND ON DELIVERY ARRANGEMENTS FOR A TOTAL OF 64 JETS IN THE LAST YEAR AN AIRBUS SPOKESWOMAN HAD NO COMMENT ON THE NEW ACCORD WITH GPA IN GENERAL THE EUROPEAN CONSORTIUM HAS MAINTAINED THAT ITS DELIVERY CHANGES WITH THE LESSOR HAVE BEEN IN PLACE SINCE LAST YEAR BUT TWO PEOPLE FAMILIAR WITH THOSE TALKS SAID AIRBUS TOOK A SUBSTANTIALLY LARGER HIT THAN BOEING OVERALL WHILE DETAILS WEREN'T AVAILABLE THE CONSORTIUM AGREED TO HAVE A LARGE NUMBER OF FIRM ORDERS CONVERTED TO RECONFIRMATION STATUS FOR ITS A310 MODELS AS WELL AS FOR NEWER MODELS SUCH AS THE A320 AND A340 ACCORDING TO PEOPLE FAMILIAR WITH THE TERMS DETAILS OF THE FOKKER AGREEMENT WEREN'T AVAILABLE HARD TIMES FOR JET MAKERS THE TIMING OF THE GPA CUTS COULDN'T BE WORSE FOR THE MANUFACTURERS MANY OF THE WEST'S BIGGEST AIRLINES ARE MAKING MAJOR REDUCTIONS IN AIRCRAFT ORDERS FOR THE NEXT TWO TO FIVE YEARS INCLUDING UNITED AIRLINES JAPAN AIR LINES DELTA AIRLINES AND NORTHWEST AIRLINES BUT THE COMPANIES HAD LITTLE CHOICE BUT TO HELP GPA GIVEN THE LEASING COMPANY'S LONGSTANDING ABILITY TO PLACE AIRCRAFT WITH MANY AIRLINES THAT CANNOT AFFORD OUTRIGHT PURCHASES GPA MAINTAINS A 454JET FLEET WITH 112 CONTRACTS IN 52 COUNTRIES THE MANUFACTURERS HOWEVER HAVE STEADFASTLY DECLINED TO GIVE UP THE APPROXIMATELY 850 MILLION IN DEPOSITS THAT GPA HAS PUT UP UNDER THE NEW ARRANGEMENT GPA HAS WON MANEUVERING ROOM BY SHORTENING THE LEAD TIME UNDER WHICH IT MUST GIVE NOTICE OF ITS INTENT TO BUY AN AIRCRAFT IN EFFECT MANY ORDERS HAVE BEEN PUT ON HOLD THOSE AGREEMENTS GAVE US WHAT WE WANTED MR FOLEY SAID THEY'RE NOT 'HARD EDGED' WHAT WE'VE NEGOTIATED GIVES US SUBSTANTIAL FLEXIBILITY WHILE SOME HAVE FEARED A GPA BANKRUPTCY FILING THE LARGE AMOUNT OF MONEY INVOLVED GIVES THE BANKS AN INCENTIVE TO WORK OUT A PLAN THE BANKS LOOKED AT THE SITUATION AND DECIDED THEY DIDN'T WANT GPA TO GO UNDER SAID KEITH MCMULLAN AN AVIATION CONSULTANT WITH AVMARK INTERNATIONAL LTD IN LONDON THEIR ONLY CHOICE WAS TO SUPPORT GPA BY AGREEING TO THE NEW PLAN BANKS ARE ESSENTIALLY BETTING THAT THE AIRLINE BUSINESS WILL TURN AROUND IN THE NEAR TERM SAID JACK HERSCH DIRECTOR OF RESEARCH AT MJ WHITMAN LP A NEW YORK CONCERN SPECIALIZING IN DEBT OF TROUBLED COMPANIES BRIAN COLEMAN CONTRIBUTED TO THIS ARTICLE 9301250008 930112 LEISURE & ARTS EUROCARICATURES OF FROGS AND SCABROUS SCOTSMEN BY PAUL LEVY LONDON JOHN BULL IS CROSS AT LEWIS BABOON AND NICK FROG OVER THE COMMON AGRICULTURAL POLICY THOUGH FOR THE FIRST TIME SINCE THE SPANISH ARMADA HE'S REALLY QUITE FOND OF DON STRUT THERE'S NOTHING FUNNY ABOUT THE CURRENT EC NEGOTIATIONS AND NOTHING VERY INTERESTING EITHER EXCEPT TO THE POLITICIANS INVOLVED AND TO THE HEADLINE WRITERS WHO ARE MARGINALLY LESS BORED BY THE CLAUSES OF THE MAASTRICHT TREATY THAN THEIR READERS ARE THE BRITISH MUSEUM HOWEVER HAS MANAGED TO EXTRACT SOME COMEDY FROM CURRENT EVENTS BY STAGING AN EXHIBITION FOR THE EUROPEAN ARTS FESTIVAL A TINY SELECTION OF CARICATURES UP THROUGH JAN 24 FROM THE MUSEUM'S OWN COLLECTION THAT SHOW THE MOSTLY 18THCENTURY ORIGINS OF THE STEREOTYPES THAT SEVERAL OF THE NATIONS OF EUROPE STILL ENTERTAIN ABOUT FOREIGNERS MEANING EACH OTHER THE THEME SAYS THE DEADPAN SCHOLARLY WAG WHO HAS WRITTEN THE EXHIBITION'S WALL CAPTIONS HAS BEEN CHOSEN AS A HUMOROUS HOMAGE TO THE SINGLE MARKET WITHIN THE EUROPEAN COMMUNITY THAT BEGINS ON 1 JANUARY 1993 MOST OF THESE STEREOTYPES STILL PREVAIL THE OLDEST TRADITION WAS THAT EXEMPLIFIED BY JAMES GILLRAY'S THE STATE OF THE WAR OR THE MONKEY RACE IN DANGER USING EMBLEMATIC SYMBOLS ESPECIALLY ANIMALS THUS THE FRENCH ARE MONKEYS RUSSIA IS A BEAR AUSTRIA AN EAGLE AND ENGLAND OF COURSE A LION SOME ENGLISH CARICATURISTS COMBINED TRAVESTIED PORTRAITS OF INDIVIDUALS WITH THE OLDER TRADITION OF ALLEGORICAL SATIRE AND CREATED A NEW GENRE IN THE MID18TH CENTURY OTHER COMIC ILLUSTRATORS USED HUMAN STEREOTYPES TO DEPICT NATIONS AND THIS WAS BOTH MORE INTERESTING AND MORE VICIOUS THAN THE EMBLEMATIC MODE JOHN BULL IS THE MOST FAMOUS CASE IN POINT HE WAS INVENTED EARLY IN THE CENTURY IN POLITICAL PAMPHLETS PUT TOGETHER BY JOHN ARBUTHNOT THIS HYPERBRIT WAS A GIFT TO ENGLISH AND FRENCH CARICATURISTS ALIKE OTHER NATIONAL FIGUREHEADS QUICKLY EMERGED IN NO TIME AT ALL THE AMERICAN HAD BECOME A FEATHERHEADRESSED INDIAN THE RUSSIAN A FURRED AND BOOTED COSSACK THE DUTCHMAN AN IDLE PIPESMOKING GINSODDEN BUMPKIN THE GERMAN A FAT GREASECOVERED EATER OF SAUERKRAUT THE FRENCHMAN A PERFUMED EFFETE DANDY AND THE SPANIARD A WICKED PRIEST OR EVEN A DEVIL OTHERS OF OUR CURRENT NATIONAL CLICHES EVOLVED IN GENUINELY CURIOUS WAYS THE FROG FOR EXAMPLE WAS FIRST USED IN THE 17TH CENTURY BY THE DUTCH TO POKE FUN AT THE ZEELANDERS WHO LIVED IN LOWLYING BOGGY COUNTRY A CENTURY LATER THE ENGLISH TRANSFERRED THE SYMBOL GENERALLY TO THE DUTCH THEMSELVES AT THIS TIME THE ENGLISH DEPICTED THE FRENCH AS MONKEYS OR BABOONS IN ALLUSION TO WHAT WERE THOUGHT TO BE THE AFFECTED MANNERS AND PRETENSIONS OF THE FRENCH IT WAS KNOWN HOWEVER THAT FROGS WERE PART OF THE FRENCH DIET AND AS NO ENGLISHMAN IN HIS RIGHT MIND WOULD DREAM OF EATING A FROG THE SYMBOL MIGRATED FROM THE DUTCH TO THE FRENCH AS FRANCE AND ENGLAND WERE MORE OR LESS CONSTANTLY AT WAR ENGLISH ARTISTS FELT A NEED FOR AN EVEN MORE UNFLATTERING EMBLEM THAN THE BABOON MOST OF THESE ASSOCIATIONS PROVED SO DURABLE THAT THEY ARE STILL THE STAPLES OF CONTEMPORARY CARTOONS AMONG THE PECULIAR ANIMAL REPRESENTATIONS IN THE PERIOD ONE THAT HAS BEEN LOST ALTOGETHER IS THAT OF THE WELSHMAN AS A GOAT THE WELSH FONDNESS FOR LEEKS WAS SEIZED UPON AS A COSTUME ELEMENT AT THE SAME TIME AND IT IS THE LEEK THAT HAS REMAINED AS THE TOKEN OF THE WELSH NATION THE OTHER NATIONS OF THE UNITED KINGDOM WERE ALSO ACKNOWLEDGED BY EUROPEAN CARICATURISTS THE IRISH AS HAPLESS BOG TROTTERS AND SCOTSMEN AS BARBARIC WEARERS OF SKIRTS THERE ARE SEVERAL EXAMPLES IN THE EXHIBITION OF FRENCH LADIES TRYING TO SOLVE THE PERENNIAL MYSTERY OF WHAT IF ANYTHING SCOTSMEN WEAR UNDER THEIR KILTS IN ONE WILDLY SCABROUS PICTURE OF A SCOTS CONCERT A ROOM FULL OF HIGHLANDERS ALL LIFT THEIR KILTS BY CREATING WHAT MIGHT BE CALLED SELFGENERATED GUSTS BY THE 1830S CARICATURES LIKE THESE HAD BECOME THE COMMONPLACES OF THE DAILY AND SUNDAY NEWSPAPER PRESS THE 90ODD PRINTS IN THIS GEMLIKE EXHIBITION WERE HOWEVER CREATED PUBLISHED AND SOLD INDIVIDUALLY AND EXPENSIVELY SINCE THE EDITIONS WERE SMALL AND TOOK MUCH LABOR TO PRODUCE THEY ARE MOSTLY ETCHINGS AND HANDCOLORED LITHOGRAPHS THE BUYERS OF COURSE WERE A POLITICAL AND SOCIAL ELITE NOTHING LIKE THEIR COUNTRYMEN DEPICTED IN THE PRINTS DESPITE THIS DISTINGUISHED GROUP OF COLLECTORS SOMETIMES THE PRINTS FELL AFOUL OF POLITICAL CENSORSHIP AND WERE NEVER SEEN AT ALL BUT WHEN SUCCESSFULLY PUBLISHED THEY WERE SEEN BY A WIDER PUBLIC IN THE WINDOWS OF PRINT SHOPS IN LONDON AND THE PROVINCES FOR A FEE YOU COULD VIEW THE REMAINDER OF THE EXHIBITION INSIDE THE SHOP AND LIKE THE VIDEOS OF OUR OWN DAY YOU COULD RENT A PORTFOLIO OF CARICATURES TO VIEW FOR THE EVENING THE PRINTS OF THE ENGLISH IN THE BRITISH MUSEUM SHOW CURATED BY THE MUSEUM'S KEEPER OF PRINTS AND DRAWINGS ANTONY GRIFFITHS WERE ALMOST ALL MADE IN PARIS BETWEEN 1814 AND 1817 WHERE THEY ENRAGED AND DELIGHTED THE TENS OF THOUSANDS OF POSTWATERLOO BRITISH TOURISTS LIFE ON THE CONTINENT WAS VERY CHEAP FOR THE INDUSTRIALLY ADVANCED WEALTHY BRITISH AIDED BY A FAVORABLE EXCHANGE RATE BY 1815 NAPOLEON'S ARMIES HAD PLUNDERED EUROPE AND INSTALLED MOST OF THE MASTERPIECES OF EUROPEAN ART FROM ANTIQUITY AND THE RENAISSANCE IN THE LOUVRE WHERE THEY REMAINED FOR A SHORT TIME BEFORE BEING RETURNED TO THEIR OWNERS THE ENGLISH UPPER CLASSES STARVED OF CULTURE AND OF FRENCH LUXURY GOODS BY NAPOLEON'S CONTINENTAL BLOCKADE REALIZED THAT THERE WOULD NEVER AGAIN BE A CHANCE TO BINGE LIKE THIS ON ART AND PARISIAN HAUTE CUISINE AND BY 1815 MORE THAN 30000 OF THEM HAD MADE THEIR WAY TO THE LOUVRE AND TO THE PALAIS ROYALE TO VISIT THE CITY'S FAMOUS HIGHCLASS PROSTITUTES THE BRIT IS ALWAYS INSTANTLY RECOGNIZABLE IN THESE FRENCH PRINTS BY HIS ILLFITTING CLOTHES HIS GAUCHE APPALLINGLY DRESSED WIFE HIS BOORISHNESS HIS AND HER COMPLETE ABSENCE OF TABLE MANNERS AND HIS GLUTTONOUS APPROACH TO FRENCH FOOD THE BRITISH VIEW OF THE FRENCH IN THE SAME PERIOD ALSO REVOLVES AROUND FOOD INDEED AROUND ROAST BEEF WILLIAM HOGARTH'S O THE ROAST BEEF OF OLD ENGLAND OF 1749 REFLECTS THE ARTIST'S MISFORTUNATE EXPERIENCE ON HIS ONE AND ONLY TRIP TO CALAIS ON THE FRENCH SIDE OF THE CHANNEL WHEN HE WAS ARRESTED AS A SPY BECAUSE HE WAS SKETCHING THE FORTIFICATIONS THE RESULTING PRINT SET THE TONE AND THE SUBJECT MATTER FOR HALF A CENTURY OUTSIDE THE WALLS OF CALAIS PEASANTS FEAST ON FISH AND FOWL AND A BUTCHER STAGGERS UNDER THE WEIGHT OF A SET OF RIBS OF BEEF INSIDE THE WALLS OF THE TOWN SAYS HOGARTH WE SEE A FARCICAL POMP OF WAR A PARADE OF RELIGION AND BUSTLE WITH VERY LITTLE BUSINESS IN SHORT POVERTY SLAVERY AND INSOLENCE WITH AN AFFECTATION OF POLITENESS MANY OF THESE PRINTS COMPARE FRENCHMEN AND ENGLISHMEN DIRECTLY OFTEN IN TERMS OF FOOD THE ENGLISHMAN ALWAYS HAS HIS ROAST BEEF WHILE THE FRENCHMAN SOMETIMES APPEARS TO BE THREADING A SKEWER THROUGH A SMALL BIRD A MISERABLELOOKING RABBIT OR EVEN HIS CAT PERHAPS THE BRITISH MUSEUM EXHIBITION IS ACTUALLY MAKING A SUBVERSIVE COMMENT ON THE PRESENTDAY NEGOTIATIONS LOOK AT GILLRAY'S 1792 SATIRE FRENCH LIBERTYENGLISH SLAVERY IN WHICH THE ENGLISHMAN THOUGH HE IS GROANING UNDER THE BURDEN OF THE WEIGHT OF HIS TAXES TODAY'S HIGH INTEREST RATES IS NONETHELESS WORKING HIS WAY THROUGH A MASSIVE HUNK OF BEEF WHILE THE FRENCHMAN WHOSE AGRICULTURAL PROTECTIONISM IS TODAY'S SUBJECT OF DISPUTE CELEBRATES HIS SUPERIOR LIBERTY BY GNAWING A SOLITARY BULB OF GARLIC MR LEVY IS A FREELANCE WRITER IN LONDON SEE RELATED LETTER LETTERS TO THE EDITOR OR IN OTHER WORDS NONE OF YOUR BUSINESS WSJ JAN 25 1993 9301120078 9301250006 930125 LOCAL BRANDS REGAIN TOPSHELF POST OVER WESTERN GOODS IN EASTERN EUROPE BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL EVERYONE REMEMBERS THE SCENES MASSES OF EAST GERMANS STREAMING THROUGH THE CRUMBLING BERLIN WALL AND HEADING STRAIGHT FOR WESTERN SUPERMARKETS ARMED WITH MARKS HANDED OUT BY LOCAL OFFICIALS THE EAST GERMANS CLEANED OUT STORE SHELVES AND BROUGHT HOME THE BOOTY THE FORBIDDEN FRUIT WESTERN GOODS ACROSS NEWLY LIBERATED EASTERN EUROPE ACQUIRING WESTERN PRODUCTS BECAME AN OVERRIDING AMBITION NO LONGER TODAY SOME LOCALLY MADE PRODUCTS ARE STAGING A COMEBACK DATA COMPILED BY MARKET RESEARCH GROUP AC NIELSEN INDICATE THAT ESPECIALLY IN EASTERN GERMANY LOCAL PRODUCTS ARE RISING AGAIN AT LEAST IN SOME BROAD CATEGORIES DATA FOR THIS REPORT ARE BASED ON SALES AT A TOTAL OF 1740 RETAIL OUTLETS ACROSS EASTERN GERMANY POLAND AND HUNGARY EACH OF THOSE STORES CURRENTLY IS MONITORED ONCE EVERY TWO MONTHS BY NIELSEN RESEARCHERS NEILSEN IS A UNIT OF DUN & BRADSTREET CORP THE SHIFTS TEND TO BE GRADUAL AND THEY DON'T AFFECT ALL PRODUCTS BUT THE TREND IS CLEAR PARTLY BECAUSE OF LOWER PRICE BUT ALSO PARTLY BECAUSE OF IMPROVED QUALITY AND PARTLY BECAUSE OF NOSTALGIA OR SPECIAL TASTES MANY EAST EUROPEANS ARE TURNING BACK TO THEIR ROOTS AT THE BEGINNING WE HAD TO TRY WESTERN PRODUCTS SAYS GUENTHER KNOETSCH A 48YEAROLD TRAVELING SALESMAN YOU COULDN'T GET ANYTHING ELSE THE BAKERS AND BUTCHERS WERE TRYING WESTERN INGREDIENTS TOO FOR A WHILE THE BAKER ACROSS THE STREET USED WESTERN YEAST BUT THEN HE REALIZED THE STUFF WASN'T SELLING SO WELL AND HE MADE THE OLD THINGS AGAIN THE SHIFT HAS BEEN DEVELOPING FOR MORE THAN A YEAR AT THE END OF 1990 ACCORDING TO A SURVEY CONDUCTED BY IM LEIPZIG A GERMAN RESEARCH INSTITUTE ONLY 51 OF EASTERN GERMANS POLLED SAID THEY LIKED TO BUY LOCAL PRODUCTS BY THE END OF 1991 THE FIGURE WAS UP TO 73 DATA FROM MUCH OF EASTERN EUROPE STILL ARE SKETCHY THE BEST DATA AND POSSIBLY THE SHARPEST CHANGES ARE IN EASTERN GERMANY THERE NIELSEN FIGURES SHOW LOCAL PRODUCTS RANGING FROM SKIN CREAM AND CIGARETTES TO CHEESE CRACKERS AND WINE GAINING MARKET SHARE AS WESTERN PRODUCTS DECLINE F6 CIGARETTES FOR EXAMPLE A BRAND OWNED BY PHILIP MORRIS COS BUT MADE LOCALLY COMMANDED 29 OF THE EASTERN GERMAN MARKET DURING THE PERIOD FROM SEPTEMBER THROUGH NOVEMBER OF LAST YEAR A YEAR EARLIER THE BRAND HELD JUST 23 OF THE MARKET GRANTED PHILIP MORRIS HAS BEEN AN AGGRESSIVE MARKETER OF SOME BRANDS BUT F6 IS THE DOWNMARKET HOMETOWN BRAND AND ITS SUCCESS SEEMS TO HAVE MORE TO DO WITH THAT THAN WITH ADVERTISING EASTERN GERMAN CIGARETTES OVERALL HAVE RISEN TO 68 OF THE LOCAL MARKET FROM 60 A YEAR EARLIER WESTERN BRANDS LED BY MARLBORO AND HB HAVE SLID CRISPBREAD A LARGE PACKAGED CRACKER POPULAR IN NORTHERN EUROPE HAS FELT A SIMILAR SHIFT BURGER THE LOCAL BRAND HAS SURGED SIX PERCENTAGE POINTS TO 54 IN THE PAST YEAR SEIZING MARKET DOMINANCE FROM WESTERN COMPETITORS SOME LOCAL PRODUCTS LIKE F6 CIGARETTES TODAY ARE BEING PRODUCED BY WESTERN COMPANIES BUT MOST OF THOSE IN THIS SURVEY STILL ARE LOCALLY CONTROLLED AND MANAGED AND LOCALLY IMPROVED THAT IS THE CASE FOR SUCH PRODUCTS AS FLORENA SKIN CREAM BURGER CRISPBREAD AND ROTKAEPPCHEN SPARKLING WINE ALL OF WHICH HAVE GAINED MARKET SHARE IN THE PAST YEAR THE LOCAL PRODUCTS ALMOST ALWAYS ARE CHEAPER AN IMPORTANT FACTOR IN TOUGH ECONOMIC TIMES AND MANY PEOPLE FOUND THAT WITH FOOD PRODUCTS IN PARTICULAR THEY HAD DEVELOPED A TASTE FOR LOCAL INGREDIENTS ESPECIALLY WHEN IT COMES TO FRESH PRODUCTS AND THOSE INVOLVING SPECIAL SOMETIMES SPICIER FORMULAS AFTER A FLIRTATION WITH WESTERN PRODUCTS MANY ARE SWITCHING BACK EASTERN GERMAN BEER SEEMS TO BE MAKING A COMEBACK AS WELL LAST SUMMER EASTERN BRANDS HELD JUST ONETHIRD OF THE LOCAL MARKET BY NOVEMBER LED BY FELDSCHLOESSCHEN AND RADEBERGER BRANDS THEY WERE UP TO 35 AS BEERS FROM WESTERN GERMANY AND ELSEWHERE FELL BACK WHAT'S MORE NIELSEN SAYS A FEW EASTERN GERMAN PRODUCTS SUCH AS SPEE DETERGENT AND BURGER CRISPBREAD ARE DEVELOPING MARKETS ALBEIT SMALL ONES IN WESTERN GERMANY BECAUSE THEY ARE CHEAPER SOME EASTERN PRODUCTS ARE FINDING NICHES IN THE LOWPRICE RANGE OF THE WESTERN MARKET SAYS MANFRED LOEHMER OF NIELSEN'S FRANKFURT OFFICE FIGURES FOR OTHER EASTERN COUNTRIES SUCH AS HUNGARY AND POLAND STILL ARE LIMITED NIELSEN SAYS IT SEES SOME SIGNS OF A SHIFT TOWARD LOCAL PRODUCTS IN POLAND IN HUNGARY MARKET SHARE FIGURES FOR LOCAL AND WESTERN PRODUCTS SO FAR APPEAR TO BE CHANGING LITTLE HOT LOCAL PRODUCTS IN POLAND NIELSEN SAYS INCLUDE A HAND SOAP CALLED BAMBINO LOCAL COFFEES CALLED KAWA NATURALNA AND ZELMAR AND POLLENA 2000 DETERGENT WHICH IS PRODUCED BY UNILEVER NV AN ANGLODUTCH CONSUMER PRODUCTS COMPANY SOME EASTERN PRODUCTS THAT INITIALLY SEEMED ON THE WAY UP ARE HAVING TROUBLE HOLDING ON TO MARKET SHARE HOWEVER BABY FOOD AN AREA WHERE QUALITY IS PARTICULARLY IMPORTANT APPEARS TO BE AN EXAMPLE EASTERN GERMAN BABY FOOD SOLD IN GLASS CONTAINERS HAS SEEN ITS MARKET SHARE STAGNATE OVER THE PAST YEAR EVEN IN THAT CATEGORY HOWEVER SOME EASTERN BRANDS ARE ENJOYING A RESURGENCE EASTERN GERMANY'S KINELLA BRAND BALLOONED TO AN 11 SHARE IN THE FALL OF 1992 FROM 6 A YEAR EARLIER AN EASTERN BRAND THAT SEEMS TO BE STUMBLING LOCALLY IN THE FACE OF WESTERN COMPETITION IS SPEE PRODUCED IN EASTERN GERMANY BY HENKEL KGAA A BIG WESTERN GERMAN SOAP AND CHEMICAL CONCERN WITH 26 OF THE LOCAL MARKET IN THE FALL OF 1991 THE DETERGENT SLIPPED TO 25 LAST FALL HENKEL SAYS THAT SPEE IS GAINING AGAIN NOW AND THAT IT WILL CONTINUE TO GROW BUT SOME CUSTOMERS COMPLAIN ABOUT QUALITY WE USED SPEE AT THE BEGINNING SAYS EDDA LINGK WHO IS MARRIED TO A NIELSEN OFFICIAL IN LEIPZIG BUT NOW I BUY PERSIL A HENKEL PRODUCT MADE IN WESTERN GERMANY I THINK THE HOTWASH LAUNDRY GETS WHITER ON THE OTHER HAND SPEE IS TWO OR THREE MARKS CHEAPER SO MAYBE FOR A FAMILYSIZED BOX I WILL GET SOME SPEE AGAIN CACILIE ROHWEDDER IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9301250005 930125 LETTERS TO THE EDITOR A BARBAROUS RELIC THAT HUMBLES EMPIRES BUT DESPITE THE PURPORTED ADVANTAGES OF ELASTIC CURRENCIES IT IS HARD TO CREDIT THAT THEY HAVE ON BALANCE BEEN BENEFICIAL CONSIDER FOR INSTANCE THE VAST GLOBAL MISALLOCATION OF CAPITAL INTO REAL ESTATE DURING THE GOVERNMENTSPONSORED INFLATION OF THE 1970S AND '80S THIS PERIOD FEATURED NOT COINCIDENTALLY STAGNANT REAL INCOMES AND LIVING STANDARDS THE MISALLOCATION NOW IS BEING CORRECTED AT A FURTHER ENORMOUS COST IN LOST ECONOMIC GROWTH ANY BENEFIT FROM DISCRETIONARY FINETUNING DURING THE PERIOD SEEMS PALTRY BY COMPARISON IN FACT THE UNRESTRAINED GOVERNMENTAL POWER TO COIN MONEY REGULATE THE VALUE THEREOF AND OF FOREIGN COIN ARTICLE I SECTION 8 OF THE 1789 US CONSTITUTION IS A BARBAROUS RELIC WHOSE MISUSE HAS HUMBLED EMPIRES YET THE UNHEALTHY DISCRETION OF THE AUTHORITIES WILL NOT YIELD TO THE COMPLACENCY OF CURRENCY HOLDERS WHO VIEW THE NEED TO HEDGE INFLATION AND FOREIGNEXCHANGE RISKS AS A NORMAL OBLIGATION RATHER THAN A DISTRESS SIGNAL 9301250004 930125 WHO'S NEWS ARMOR ALL PRODUCTS CORP ARMOR ALL PRODUCTS CORP ALISO VIEGO CALIF JON S CARTWRIGHT WAS ELECTED A DIRECTOR OF THIS MAKER OF AUTOMOTIVEAPPEARANCE PRODUCTS HE SUCCEEDS ROBERT T DAVIS WHO RETIRED 9301250003 930125 USG MODIFIES PREPACKAGED' CHAPTER 11 PLAN HOLDOUT DEBENTURE GROUP RECEIVES SWEETER DEAL ON WARRANTS FOR STOCK BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO USG CORP SAID IT MODIFIED A PLANNED PREPACKAGED CHAPTER 11 FILING MOLLIFYING THE ONE GROUP OF DEBTHOLDERS THAT HAD BEEN THREATENING TO WITHHOLD APPROVAL THE BUILDINGPRODUCTS CONCERN INITIALLY DISCLOSED IN SEPTEMBER THE PLAN TO TRIM THE FACE VALUE OF ITS DEBT TO 16 BILLION FROM 27 BILLION BUT HOLDERS OF ONE CLASS OF DEBT ITS 440 MILLION OF 16 JUNIOR SUBORDINATED PAYINKIND DEBENTURES HAD DECLINED TO SUPPORT THE PLAN SETTING THE STAGE FOR A COURTIMPOSED RESOLUTION USG TINKERED WITH THE PLAN HOWEVER AND ON FRIDAY IT SAID IT HAD REACHED AGREEMENT IN PRINCIPLE ON TERMS OF THE REVISED PLAN WITH ALL THE DEBTHOLDER COMMITTEES INCLUDING THE 16 PAYINKIND GROUP IT ALSO SAID THAT ALL 31 OF ITS BANK LENDERS HAD APPROVED TERMS OF THE PLAN THE BANK LENDERS WHICH WILL BE FULLY REPAID HAD BEEN ASKED TO APPROVE CERTAIN CONCESSIONS ON INTEREST RATE TERMS AND REPAYMENT SCHEDULING THEY HADN'T FORMALLY SIGNED OFF ON THE PLAN UNTIL NOW USG'S PLAN APPLIES ONLY TO THE HOLDING COMPANY AND NOT ITS SUBSIDIARIES THE COMPANY HAD BEEN SEEKING TO RESTRUCTURE ITS DEBT THROUGH OUTOFCOURT NEGOTIATIONS THAT BEGAN IN LATE 1990 AFTER THOSE TALKS FAILED TO YIELD AGREEMENT THE COMPANY TURNED TO A PREPACKAGED FILING PLAN WHICH REQUIRES APPROVAL OF ONLY TWOTHIRDS OF CREDITORS UNDER SUCH PLANS A COMPANY ENTERS BANKRUPTCYLAW PROCEEDINGS HAVING ALREADY WON THE AGREEMENT OF MOST CREDITORS THE COURT THEN CAN IMPOSE THE TERMS ON THE REMAINING CREDITORS USG SAID IT NOW EXPECTS TO FILE A REORGANIZATION PLAN WITH THE BANKRUPTCY COURT IN EARLY MARCH AND TO EMERGE FROM THE CHAPTER 11 PROCESS BEFORE JUNE 30 WITH THE AGREEMENTS NOW IN HAND IT'S PROCEDURAL FROM THIS POINT FORWARD A SPOKESMAN SAID WHILE THE AMENDED PLAN HEWS ESSENTIALLY TO THE ORIGINAL FILING SOME CHANGES HAVE BEEN PUT IN PLACE AS BEFORE HOLDERS OF USG'S 13 1/4 SENIOR SUBORDINATED DEBENTURES WILL RECEIVE 82 OF USG'S COMMON STOCK BUT THEIR HOLDINGS NOW MAY BE DILUTED BY ADDITIONAL WARRANTS OFFERED AS A SWEETENER TO THE RELUCTANT HOLDERS OF THE 16 PAYINKIND DEBT THE PAYINKIND HOLDERS WILL RECEIVE 15 COMMON EQUITY AS BEFORE THEY'LL ALSO RECEIVE FIVEYEAR WARRANTS TO BUY 7 OF USG'S SHARES OUTSTANDING AN INCREASE FROM THE INITIAL PLAN TO PROVIDE WARRANTS FOR JUST 3 OF THE SHARES OUTSTANDING USG'S CURRENT SHAREHOLDERS AS ORIGINALLY ENVISIONED WILL SEE THEIR HOLDINGS DILUTED TO 3 BUT UNDER THE REVISED PLAN THEY WON'T RECEIVE ANY WARRANTS TO BUY ADDITIONAL SHARES INITIALLY CURRENT HOLDERS WERE TO RECEIVE WARRANTS FOR 1 OF THE COMPANY'S SHARES OUTSTANDING THE REVISED PLAN ALSO CALLS FOR A MODEST REDUCTION IN THE TOTAL AMOUNT OF STOCK OPTIONS USG MANAGERS WILL BE GRANTED THE INITIAL PLAN CONTAINED A PROVISION THAT WOULD ALLOW THE USE OF A CRAMDOWN PROCEEDING BY WHICH TERMS OF THE PLAN COULD BE IMPOSED ON THE 16 PAYINKIND HOLDERS IF THEY CONTINUED THEIR OPPOSITION THE REVISED PLAN STILL CONTAINS THE CRAMDOWN BUT IT REMOVES A PENALTY THAT WOULD HAVE BEEN IMPOSED ORIGINALLY THE 16 PAYINKIND HOLDERS WOULDN'T HAVE RECEIVED ANY OF THE 15 EQUITY STAKE IF THEY FORCED A CRAMDOWN BUT NOW THE 16 HOLDERS WILL RECEIVE HALF THE EQUITY A 75 STAKE EVEN IF THEY FORCE SUCH A MOVE WITH THE REVISIONS WE BELIEVE THAT THE POTENTIAL FOR A CRAMDOWN IS REMOTE USG'S SPOKESMAN SAID BECAUSE OF THE SIGNIFICANT IMPROVEMENT IN THE CONSIDERATION BEING GIVEN TO THE 16 BONDHOLDERS SAID RALPH HELLMOLD WHO IS FINANCIAL ADVISER TO THE PAYINKIND HOLDERS THE DEBTHOLDER COMMITTEE NOW FULLY SUPPORTS THE CURRENT COMPANY PROPOSAL 9301250002 930125 USX FOLLOWS LTV CORP IN RAISING PRICES FOR STEEL PITTSBURGH USX CORP'S US STEEL FOLLOWING A COMPETITOR'S LEAD SAID IT WILL RAISE PRICES 4 TO 5 APRIL 4 ON HOTROLLED AND COLDROLLED STEEL THE BIG STEELMAKER'S MOVE CAME ONE DAY AFTER LTV CORP SAID IT WAS BOOSTING PRICES BY THE SAME AMOUNTS BECAUSE OF STRONG DEMAND THE LIKELIHOOD THAT THE COMMERCE DEPARTMENT WILL SLAP FOREIGN STEELMAKERS WITH STIFF TARIFFS THIS WEEK ALSO PLAYED INTO LTV'S DECISION US COMPANIES CONTEND THAT FOREIGN STEELMAKERS DUMP THEIR PRODUCT IN THIS COUNTRY DUMPING OCCURS WHEN A PRODUCT IS SOLD IN A FOREIGN MARKET FOR LESS THAN THE DOMESTIC PRICE US STEEL'S INCREASES LIKE LTV'S AMOUNT TO 20 A TON FOR HOTROLLED AND COLDROLLED STEEL ALTHOUGH THE STEEL INDUSTRY HAS FAILED TO GET PRICE INCREASES TO STICK FOR TWO YEARS ONE EARLIER THIS MONTH HELD AND ANALYSTS GIVE THIS NEWEST INCREASE A GOOD CHANCE THE PRICE RISES ARE SORELY NEEDED BY BIG STEELMAKERS WHICH HAVE BEEN POSTING MILLIONS OF DOLLARS IN LOSSES FOR MORE THAN A YEAR 9301250001 930125 OTC FOCUS TOP STOCK FUND EXPLOITS CONSERVATISM OF ANALYSTS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON TINY 11 MILLIONASSET US BOSTON NUMERIC SERIES WAS THE NO 11 PERFORMER AMONG MUTUAL FUNDS IN THE FOURTH QUARTER SOARING 259 AS SMALLCOMPANY STOCKS TOOK OFF ANOTHER ONESHOT WONDER RUN BY SOME LUCKY STOCKPICKER YOU'VE NEVER HEARD OF NOT QUITE THE FUND'S MANAGER IS JOHN C BOGLE JR A MANAGING DIRECTOR AT NUMERIC INVESTORS A CAMBRIDGE MASS INVESTMENT ADVISER MR BOGLE ISN'T PARTICULARLY WELLKNOWN BUT HIS FATHER VANGUARD GROUP CHAIRMAN JOHN C BOGLE IS VANGUARD IS THE THIRD LARGEST MUTUAL FUND GROUP IN THE US ITS CHAIRMAN IS AN INDUSTRY MAVERICK AND A FREQUENT CRITIC OF THE FUND INDUSTRY ESPECIALLY WHEN IT COMES TO COSTS IMPOSED ON INVESTORS BY FUND MANAGEMENT COMPANIES THE YOUNGER MR BOGLE ISN'T NEARLY AS OUTSPOKEN AS HIS FATHER BUT HIS INVESTMENT APPROACH HAS STARTED TO WIN A LOT OF ATTENTION NUMERIC INVESTORS LAUNCHED ONLY THREE YEARS AGO HAS 650 MILLION UNDER MANAGEMENT THE FIRM IS RUN BY MR BOGLE AND TWO PARTNERS HOW DOES NUMERIC INVESTORS GO ABOUT PICKING STOCKS THE FIRM'S INVESTMENT STRATEGY IS BASED ON A SIMPLE NOTION SECURITIES ANALYSTS TEND TO BE CONSERVATIVE AS A RESULT WHEN PREDICTING CORPORATE PROFITABILITY THEY TYPICALLY RAISE AND LOWER THEIR EARNINGS ESTIMATES IN SMALL INCREMENTS AS ANALYSTS GRADUALLY RAISE THEIR EARNINGS ESTIMATES FOR A COMPANY THEY TEND TO PUSH THE STOCK PRICE HIGHER THE TRICK THE 33YEAROLD MR BOGLE SAYS IS TO BUY THOSE COMPANIES WHOSE ESTIMATED EARNINGS HAVE BEEN RAISED AND WHERE FURTHER INCREASES ARE LIKELY THE MARKET IS NOT VERY GOOD AT DISCOUNTING THE INFORMATION INHERENT IN AN EARNINGS REVISION HE SAYS IT DOESN'T FULLY DISCOUNT THE FACT THAT ONE EARNINGS REVISION TENDS TO LEAD TO ANOTHER EARNINGS REVISION TO SPOT COMPANIES WHOSE ESTIMATED EARNINGS ARE ON THE RISE NUMERIC INVESTORS USES QUANTITATIVE INVESTMENT TECHNIQUES WHICH COMBINE COMPLEX MATHEMATICS AND COMPUTER POWER IN AN EFFORT TO GENERATE MARKETBEATING RETURNS EVERY NIGHT NUMERIC MAKES A COMPUTER RUN THROUGH 1700 STOCKS THAT ARE FOLLOWED BY THREE OR MORE ANALYSTS HOPING TO FIND STOCKS WITH RISING ESTIMATED EARNINGS THAT ARE ALSO CHEAP BY VALUATION YARDSTICKS SUCH AS BOOK VALUE AND EXPECTED EARNINGS GROWTH DURING THE DAY THE FIRM MONITORS BUSINESS NEWS WIRES FOR ANY EARNINGS REVISIONS NUMERIC ALSO RELIES ON A NETWORK OF 50 BROKERS WHO SERVICE INSTITUTIONAL INVESTORS IF A BROKER'S FIRM HAS REVISED AN EARNINGS ESTIMATE NUMERIC WANTS TO BE THE FIRST TO HEAR THE BROKERS THAT WILL GET MOST OF OUR COMMISSION DOLLARS WILL BE THOSE THAT WILL GET US THE LATEST EARNINGS REVISIONS SAYS MR BOGLE FOR US BOSTON NUMERIC SERIES MR BOGLE STICKS MOSTLY WITH SMALLERCOMPANY STOCKS SUCH AS CALLAWAY GOLF COLLECTIVE BANCORP SHOREWOOD PACKAGING AND 3COM HE BOUGHT 3COM WHICH MAKES COMPUTER NETWORKING PRODUCTS IN LATE DECEMBER A RASH OF ANALYSTS HAD JUST RAISED ESTIMATES AFTER THE COMPANY REPORTED BETTERTHANEXPECTED EARNINGS SINCE THEN FURTHER EARNINGS REVISIONS HAVE HELPED BOOST THE STOCK SO THAT IT NOW TRADES AT 3425 UP FROM MR BOGLE'S 28 PURCHASE PRICE EVEN AT CURRENT PRICES MR BOGLE SAYS HE STILL LIKES THE STOCK MR BOGLE'S FUND WHICH HAS A 5000 INVESTMENT MINIMUM AND DOESN'T CHARGE A COMMISSION ON FUND PURCHASES TYPICALLY OWNS 60 TO 80 STOCKS WITH AN AVERAGE STOCK MARKET VALUE OF 500 MILLION THE FUND WAS LAUNCHED ONLY LAST AUGUST AND MR BOGLE'S INVESTMENT CAREER BEGAN JUST OVER FIVE YEARS AGO ON OCT 19 1987 HE TRANSFERRED FROM STATE STREET BANK & TRUST'S CORPORATE LENDING DEPARTMENT TO THAT FIRM'S ASSET MANAGEMENT DIVISION THE DAY OF THE CRASH WAS MY FIRST DAY AT THE ASSET MANAGEMENT DEPARTMENT RECALLS MR BOGLE NOBODY WAS VERY FRIENDLY NOBODY WANTED TO TALK TO ME ALL THEY WANTED TO DO WAS SIT THERE AND WATCH THE FUNNY GREEN BLIPS ON THEIR STOCK QUOTE MACHINES THE DOW JONES INDUSTRIAL AVERAGE FELL 508 POINTS OR 226 THAT DAY MR BOGLE SAYS HE DECIDED TO FOCUS ON COMPUTERIZED INVESTING BECAUSE HIS FATHER COUNSELED ME THAT QUANTITATIVE INVESTING WOULD BE THE WAVE OF THE FUTURE MR BOGLE'S FATHER HAS BEEN A BIG ADVOCATE OF BOTH QUANTITATIVELY MANAGED MUTUAL FUNDS AND INDEX FUNDS WHICH BUY THE SECURITIES THAT MAKE UP A PARTICULAR MARKET INDEX AND THEREBY SEEK TO REPLICATE THE INDEX'S PERFORMANCE BOTH INDEX FUNDS AND QUANTITATIVELY MANAGED FUNDS DEVELOPED FROM ACADEMIC RESEARCH SHOWING THAT TRADITIONAL STOCKPICKING TECHNIQUES OFTEN FAILED TO GENERATE MARKETBEATING RETURNS QUANTITATIVE AND INDEX FUNDS TOGETHER ACCOUNT FOR 35 OF VANGUARD'S 34 BILLION IN STOCK FUND ASSETS MR BOGLE LEFT STATE STREET IN 1990 TO JOIN NUMERIC INVESTORS MORE THAN HALF OF THE FIRM'S TOTAL OF 650 MILLION IN ASSETS IS IN A HEDGE FUND WHICH BUYS STOCKS WITH RISING EARNINGS ESTIMATES AND SELLS SHORT STOCKS WHOSE EXPECTED PROFITABILITY IS FALLING IN A SHORT SALE AN INVESTOR SELLS BORROWED STOCK IN THE HOPE OF REPLACING THE BORROWED STOCK WITH SHARES BOUGHT BACK LATER AT A LOWER PRICE NUMERIC'S HEDGE FUND HAS RETURNED 179 A YEAR SINCE ITS 1990 LAUNCH COMPARED WITH 118 FOR THE STANDARD & POOR'S 500STOCK INDEX BUT MR BOGLE CONCEDES THAT THE PICKINGS MAY NOT ALWAYS BE SO GOOD ONE DAY THE MARKET WILL PROPERLY DISCOUNT EARNINGS REVISIONS HE SAYS AT THAT POINT WE'LL SHUT THE MODEL DOWN HOPEFULLY BY THEN WE'LL HAVE ANOTHER NEW TRICK UP OUR SLEEVE THE OVERTHECOUNTER MARKET EDGED UP TO ANOTHER RECORD FRIDAY ONE DAY AFTER THE NASDAQ COMPOSITE INDEX CLOSED ABOVE 700 FOR THE FIRST TIME THIS BENCHMARK INDEX ROSE 086 OR 012 TO 70163 GAINERS OUTPACED DECLINERS 1483 TO 1188 TOTAL NASDAQ VOLUME ROSE TO 2947 MILLION SHARES FROM 2813 MILLION WE ARE OVERDUE FOR A PULLBACK BUT THERE STILL SEEMS TO BE A LOT OF MONEY COMING INTO THE FUNDS TO BUY STOCKS SAID MARK DONAHOE MANAGING DIRECTOR OF INSTITUTIONAL TRADING AT PIPER JAFFRAY THE NASDAQ COMPOSITE INDEX IS NOW UP 36 FOR 1993 AND HAS ROCKETED 24 FROM ITS OCTOBER LOW INCLUDING THE PAST WEEK'S 06 GAIN THE DOW JONES INDUSTRIAL AVERAGE HAS RISEN JUST 24 IN THE SAME 3 1/2MONTH SPAN COMMUNICATIONSRELATED STOCKS FELL FRIDAY THE NASDAQ UTILITY INDEX DROPPED 126 MCCAW CELLULAR COMMUNICATIONS SLID 2 1/8 TO 36 3/8 AND LIN BROADCASTING DECLINED 1 1/8 TO 85 5/8 GOLDMAN SACHS THURSDAY DOWNGRADED LIN TO MODERATE OUTPERFORMER FROM A BUY ON THE BASIS OF ITS PRICE IT HIT A 52WEEK HIGH OF 90 TUESDAY BANK STOCKS WERE ON THE RISE AGAIN AFTER EASING THURSDAY FOR THE FIRST TIME IN ABOUT TWO WEEKS THE NASDAQ BANK INDEX JUMPED 451 OR 079 TO A RECORD 57846 TECHNOLOGY STOCKS WERE MIXED APPLE COMPUTER FELL 1/2 TO 59 1/2 INTEL LOST 1/2 TO 111 1/2 AND MICROSOFT SLIPPED 1/8 TO 89 3/8 BUT SUN MICROSYSTEMS ADDED 1 1/8 TO 39 3/8 AND LOTUS DEVELOPMENT GAINED 1 1/8 TO 23 1/2 NETWORK GENERAL FELL 2 1/2 TO 17 1/4 THE MENLO PARK CALIF SOFTWARE DEVELOPER POSTED NET INCOME OF 19 CENTS A SHARE FOR ITS THIRD QUARTER ENDED LAST MONTH UP FROM 18 CENTS A YEAR EARLIER BUT JUST BELOW THE 20CENT AVERAGE OF FORECASTS SHOWN ON THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM SOFTWARE PUBLISHING JUMPED 3 7/8 TO 12 7/8 THE SANTA CLARA CALIF COMPANY EARNED 34 CENTS A SHARE FOR ITS FIRST QUARTER ENDED DEC 31 UP FROM 33 CENTS A YEAR EARLIER ALEX BROWN & SONS UPGRADED THE STOCK TO A BUY FROM NEUTRAL MICROTEST FELL 1 1/2 TO 17 3/4 EVEN THOUGH THE COMPANY REPORTED FOURTHQUARTER EARNINGS OF 16 CENTS A SHARE UP FROM 11 CENTS A YEAR EARLIER THE PHOENIXBASED COMPANY MAKES PRODUCTS USED IN CONNECTION WITH LOCAL AREA COMPUTER NETWORKS PHYSICIANS HEALTH JUMPED TO 17 3/4 ON ITS FIRST DAY OF TRADING FROM AN INITIAL OFFERING PRICE OF 15 THE TRUMBULL CONN HEALTH MAINTENANCE ORGANIZATION OPERATOR WAS THE SUBJECT OF A 35 MILLIONSHARE ISSUE WHICH INCLUDED ONE MILLION SHARES SOLD BY EXISTING HOLDERS AMGEN FELL 1 7/8 TO 66 1/4 SG WARBURG ANALYST KEVIN WILSON DOWNGRADED THE STOCK TO SELL FROM BUY HE CITED SLOWING SALES GROWTH FOR THE THOUSAND OAKS CALIF COMPANY'S PRIMARY PRODUCTS AND CONCERN THAT AMGEN'S PROFIT COULD BE PINCHED BY POSSIBLE CLINTON ADMINISTRATION INITIATIVES TO CURB HEALTHCARE COSTS AZTAR JUMPED 3/4 TO 8 1/8 ON MARKETLEADING VOLUME OF 59 MILLION SHARES IN FRIDAY'S EDITION OF USA TODAY STEVE KROLL A MANAGING DIRECTOR AT MONNESS CRESPI HARDT NAMED THE STOCK A TOP PICK AMONG LOWPRICED ISSUES THE PHOENIX COMPANY OPERATES CASINOHOTELS IN NEVADA AND IN ATLANTIC CITY NJ OTHER CASINO STOCKS ALSO WERE STRONG VIDEO LOTTERY TECHNOLOGIES HOWEVER FELL 1 1/2 TO 13 AFTER WEST VIRGINIA GOV GASTON CAPERTON ASKED THAT HIS STATE'S LOTTERY COMMISSION HALT ITS EFFORTS TO INSTITUTE A VIDEOBASED LOTTERY SYSTEM VIDEO LOTTERY BASED IN BOZEMAN MONT HAD BEEN COMPETING FOR THE WEST VIRGINIA BUSINESS RICHFOOD HOLDINGS ADDED 2 1/4 TO 23 3/4 THE RICHMOND VA FOOD COMPANY SAID IT BOUGHT THE ASSETS OF THE B GREEN & CO DIVISION THAT SUPPLIES GROCERY PRODUCTS TO 250 SUPERMARKETS IN THE MIDATLANTIC REGION DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9301220191 930122 EVEN SIBERIAN EXILE MAY NOT HAVE BEEN AS DESOLATE AS THIS MEMORIAL AT LENIN'S BIRTHPLACE ATTRACTS FAR FEWER VISITORS SINCE DEMISE OF USSR BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL ULYANOVSK RUSSIA IF IT COULD SPEAK THE MARBLE STATUE HERE IN THE ATRIUM OF THE LENIN MEMORIAL BUILDING MIGHT SAY SOMETHING LIKE HEY WHERE'D EVERYBODY GO THESE ARE LONELY DAYS IN ULYANOVSK BIRTHPLACE OF THE REVOLUTIONARY ABOUT 500 MILES EAST OF MOSCOW AMID AN EXPANSE OF FORESTS AND COLLECTIVE FARMS ASIDE FROM MONUMENTS TO THE SOVIET UNION'S FOUNDING FATHER THERE IS LITTLE TO SEE IN THIS LITTLE CITY MOST OF THE LOCALS WORK IN THE AEROSPACE AND MILITARY COMPLEX JUST OUTSIDE OF TOWN FOR DECADES HUNDREDS OF THOUSANDS OF PEOPLE JOURNEYED HERE TO WAIT IN LONG LINES TO SEE TWO HUMBLE BUILDINGS THE HOUSE WHERE VLADIMIR ILYICH ULYANOV WAS BORN AND HIS CHILDHOOD HOME OF COURSE THIS WASN'T EVERYBODY'S IDEA OF A HOLIDAY THE SOVIET STATE MADE A LOT OF PEOPLE VISIT THE SITES ON SCHOOL TRIPS WHEN THEY WERE STUDENTS OTHERS WERE HELPED ALONG WITH STATE TRAVEL SUBSIDIES NEXTDOOR TO THE MEMORIAL BUILDING IS THE TINY TWOSTORY HOUSE WHERE LENIN WAS BORN THOUGH IT BOASTS A FRESH COAT OF YELLOW PAINT IT LOOKS AS IF NOTHING HAS HAPPENED THERE SINCE THE SAME GOES FOR THE NEARBY MUSEUM DEVOTED TO LENIN'S CHILDHOOD THE ONLY VISITORS ON THIS PARTICULAR DAY A GROUP OF LOCAL SCHOOL CHILDREN IN THE OLD DAYS PEOPLE WOULD LINE UP FOR TWO OR THREE HOURS TATYANA BRYLJAEVA MANAGER OF THE LENIN CHILDHOOD MUSEUM SAYS WISTFULLY AS MANY AS 3000 VISITORS A DAY WOULD JOSTLE ONE ANOTHER FOR A CLOSER LOOK AT SUCH WONDERS AS LENIN'S HIGHSCHOOL REPORT CARDS AN ALMOST PERFECT SET OF STRAIGHT AS HIS ONLY B WAS IN LOGIC LAST YEAR HOWEVER ONLY 17000 VISITORS WERE RECORDED BY THE END OF OCTOBER NEARLY ONETHIRD OF THEM GERMAN AND AMERICAN TOURISTS STILL MS BRYLJAEVA WITH HER NEONPINK DOWN COAT MATCHING LIPSTICK AND PURPLE HAT LOOKS ANYTHING BUT DISCOURAGED THE CHIPPER MUSEUM DIRECTOR AND HER STAFF OF NINE TWO RESEARCHERS AND SEVEN TOUR GUIDES KEEP PLODDING ALONG WAITING FOR THE OCCASIONAL TOUR GROUP AND MAKING ADJUSTMENTS TO THE DISPLAYS RENOVATIONS HAVE EVEN BEGUN FUNDED BY THE RUSSIAN MINISTRY OF CULTURE THERE HAVE ALSO BEEN A FEW NOTABLE CHANGES IN THE MUSEUM'S CONTENTS THE DISPLAY OF THE 14 BOLSHEVIKS WHO TOGETHER WITH LENIN FORMED THE ORIGINAL SOVIET GOVERNMENT SHOWS A FEW PREVIOUSLY SUPPRESSED FACES ONLY IN 1992 DID THE GOVERNMENT ALLOW THE MUSEUM TO DISPLAY THE REAL MEMBERS OF THAT GOVERNMENT SUCH AS LEON TROTSKY AND ALEKSEY RYKOV YET ALL THE IMPROVEMENTS DON'T SEEM TO BE DRAWING IN MANY VISITORS THERE COULD BE SEVERAL EXPLANATIONS THE LOCAL AIRPORT FREQUENTLY RUNS OUT OF FUEL AND CAN CLOSE DOWN FOR PERIODS OF MORE THAN A WEEK THE TRAIN FROM MOSCOW WHICH RUNS ONCE A DAY TAKES MORE THAN 12 HOURS A LOT OF THE VISITORS WHO DO COME TO THE MUSEUM AND THE MEMORIAL THESE DAYS ARE ON WEEKLONG CRUISES ON THE VOLGA WHICH THE CITY OVERLOOKS FROM A HILLSIDE BUT THE VOLGA FREEZES FOR MUCH OF THE WINTER EVEN THOSE VISITORS WHO MAKE IT TO ULYANOVSK DON'T EXACTLY SEE A REPLICA OF THE TOWN WHERE LENIN WAS BORN ON APRIL 22 1870 FOR ONE THING THE TOWN HAD A DIFFERENT NAME THEN SIMBIRSK SIMBIRSK BECAME ULYANOVSK ONLY AFTER ULYANOV CHANGED HIS NAME TO LENIN IN 1901 AFTER BEING EXILED TO SIBERIA THE EXACT LOCATION OF LENIN'S BIRTHPLACE ALSO SEEMS TO HAVE CHANGED OLD PHOTOGRAPHS SHOW IT IN THE MIDDLE OF A FIELD BUT NOW IT SITS ATOP THE HILL IN A SPOT WITH THE BEST VIEW OF THE VOLGA OFFICIALS AT THE MEMORIAL INSIST THE HOME WAS MOVED ONLY A FEW FEET TO EASE THE MEMORIAL'S CONSTRUCTION BUT NONE OF THOSE CHANGES COMPARES TO THE REVOLUTION THAT HAS SWEPT THE TOWN'S FAVORITE SON OUT OF FAVOR AND INTO OPEN RIDICULE FOR SO LONG THEY MADE HIS IMAGE VERY POSITIVE SAYS MS BRYLJAEVA NOW THEY MAKE IT SO NEGATIVE THAT IT'S HARD TO DIGEST SHE CAREFULLY AVOIDS EXPRESSING HER OWN VIEWS BUT MANY OF THE RUSSIAN VISITORS SHE SAYS ARE OLD MEN SHOWING THEIR GRANDCHILDREN THE BIRTHPLACE OF THE 20TH CENTURY'S MOST FAMOUS REVOLUTIONARY AND BEMOANING HIS FALL FROM GRACE WITH THE POPULACE MS BRYLJAEVA SAYS PEOPLE WHO COME SAY WE SHOULDN'T BE SO RUDE AND TRAMPLE ON OUR HISTORY 9301220190 930122 LETTERS TO THE EDITOR NATION BRAINWASHED BY ANTIWET GROUPS THE ALCOHOLICBEVERAGE INDUSTRY SEAGRAM CAMPAIGN DEALS BLUNTLY WITH ISSUE OF DRUNKEN DRIVING DEC 11 CAN DO NOTHING RIGHT IN THE EYES OF ITS CRITICS BUT WHAT'S WORSE IS THAT ITS MYOPIC DRIVE FOR SOCIAL RESPONSIBILITY CAUSES IT TO SHOOT ITSELF IN THE FOOT ALMOST EVERY TIME IT ATTEMPTS TO CURRY PUBLIC FAVOR TIME AND AGAIN IT HAS DONATED SIGNIFICANT SUMS TO SOCALLED DO GOOD ORGANIZATIONS THAT HAVE NEVERTHELESS CONTINUED THEIR NEOPROHIBITIONISTIC EXAMINATION OF THE GIFT HORSE SEE WSJ MAY 21 1991 SELLING MODERATION LIQUOR PEOPLE TRY TO STAY CLEAR OF TOBACCO ROAD SOCIAL RESPONSIBILITY SHOULD BEGIN WITH SELFRESPECT AND PRIDE IN PRODUCT OR SERVICE THAT MAY BE DIFFICULT TO REMEMBER WHILE THROWING MONEY AT AN ENEMY HOT ON ONE'S HEELS BUT IT IS THE ONLY SENSIBLE PRESCRIPTION FOR LONGTERM VIABILITY THE ENTIRE COUNTRY AND ITS NATIONAL AND STATE LEGISLATURES HAVE BEEN BRAINWASHED FOR THE PAST DOZEN YEARS BY A HOST OF ANTIWET ORGANIZATIONS AND BUREAUCRACIES WITH VESTED INTERESTS IN THE CONTINUED DECLINE OF THE ALCOHOLICBEVERAGE INDUSTRY FORMER SURGEON GENERAL C EVERETT KOOP HAS CALLED FOR A 004 BLOOD ALCOHOL CONCENTRATION BAC TO DEFINE DWI DRIVING WHILE INTOXICATED WITHIN THE NEXT SIX YEARS MOTHERS AGAINST DRUNK DRIVING ADMITS ITS AGENDA CALLS FOR 000 ALCOHOL AND ILLEGAL DRUGS ARE LINKED BY MANDATE IN FEDERAL GOVERNMENT DOCUMENTS THE ALCOHOLICBEVERAGE INDUSTRY SHOULD REALIZE THESE ORGANIZATIONS CANNOT CONTINUE TO APPEAL TO THEIR CONSTITUENCIES WITHOUT CALLING FOR HARSHER PENALTIES AND LOWER BACS DEFINING DWI AND IN EFFECT EACH TIME THE BAC IS LOWERED A NEW CLASS OF MODERATE DRINKERS IS CRIMINALIZED YES THERE ARE INNOCENT VICTIMS OF DRUNKEN DRIVERS AND THERE ARE MANY PEOPLE WHO SHOULD NOT DRINK BECAUSE THEY CANNOT TOLERATE ALCOHOL BUT A CLOSE ANALYSIS OF THE ALCOHOLRELATED FATALITY STATISTICS SHOWS THAT THE PROBLEM HAS BEEN BLOWN OUT OF PROPORTION BY THOSE WHO PROFIT THEREBY OUR SMALL ORGANIZATION CALM IS AN ATTEMPT TO BALANCE THE HYPERBOLE WITH FACTS IT IS A COURSE I RECOMMEND TO THE INDUSTRY ADVERTISERS SHOULD FOCUS ON THE COST OF A DUI DRIVING UNDER THE INFLUENCE CONVICTION THOUGH ALL TOO OFTEN THERE ARE FATALITIES IN DRUNKDRIVING EXCURSIONS MOST YOUNG PEOPLE TRULY BELIEVE THEY ARE NEVER DRUNK ENOUGH TO BECOME THE CAUSE OF AN ACCIDENT WHILE DRIVING HOWEVER A DUI CITATION CAN BE THE RESULT OF ANYTHING FROM A ROUTINE STOP FOR A DEFECTIVE TAILLIGHT TO SPEEDING THESE YOUNG DRINKERS IF NOTHING ELSE BELIEVE STRONGLY IN THE VALUE OF MONEY AFTER ACCOUNTING FOR INSURANCE INCREASES FINES ALCOHOLPROGRAM FEES AND MANY OTHER ASSOCIATED FINANCIAL EXPENDITURES ONE CAN EXPECT TO PAY AT LEAST 6500 FOR A DUI CONVICTION IN CALIFORNIA THIS IS NOT EVEN TAKING INTO CONSIDERATION HUMILIATING JAIL TIME COMMUNITY SERVICE AND SUSPENSION OF YOUR DRIVER'S LICENSE THE YOUNGER GENERATION IS OBSESSED WITH MONEY AND THE THOUGHT OF LOSING SUCH A LARGE SUM FOR ONE NIGHT OF PARTY TIME WOULD CAUSE MANY TO THINK TWICE 9301220189 930122 DIVIDEND NEWS PRESIDIO OIL CO PRESIDIO OIL CO DENVER SAID IT ELIMINATED ITS 10CENTASHARE ANNUAL DIVIDEND ON COMMON STOCK THAT IT HAD PAID SINCE 1987 THE FUNDS ABOUT 25 MILLION ANNUALLY WILL BE REDIRECTED TO THE COMPANY'S OIL AND GAS DRILLING OPERATIONS 9301220188 930122 BUSINESS BRIEF RAYTHEON CO POSTS PROFIT GAIN OF 77 FOR FOURTH QUARTER LEXINGTON MASS RAYTHEON CO HELPED BY COSTCUTTING AND STRONG RESULTS IN ITS COMMERCIAL OPERATIONS REPORTED A 77 INCREASE IN FOURTHQUARTER NET INCOME THE ELECTRONICS AIRCRAFT AND APPLIANCE MAKER SAID NET ROSE TO 170 MILLION OR 126 A SHARE FROM 1578 MILLION OR 119 A SHARE A YEAR EARLIER SALES SLIPPED TO 240 BILLION FROM 243 BILLION RAYTHEON ALSO DISCLOSED THAT ITS WORK FORCE HAS FALLEN TO 63900 FROM 71600 AT THE END OF 1991 COMMERCIAL OPERATIONS WERE KEY CONTRIBUTORS TO RESULTS IN THE FOURTH QUARTER AND YEAR DENNIS J PICARD RAYTHEON'S CHAIRMAN AND CHIEF EXECUTIVE SAID IN A STATEMENT MR PICARD SAID THE APPLIANCE SEGMENT'S EARNINGS DOUBLED AND THE AIRCRAFT SEGMENT ACHIEVED RECORD SALES THE UNITED ENGINEERS & CONSTRUCTORS AND BADGER UNITS IN THE COMPANY'S ENERGY AND ENVIRONMENT SEGMENT EACH HAD A STRONG GROWTH YEAR HE SAID THE ELECTRONICS SEGMENT RAYTHEON'S LARGEST MAINTAINED ITS SOLID OPERATING PERFORMANCE PACED BY DEFENSE ELECTRONICS MR PICARD SAID HE SAID THE INTERNATIONAL DEFENSE BUSINESS BASE WAS HELPED BY TWO MAJOR FOREIGN ORDERS FOR THE PATRIOT MISSILE A 1 BILLION SAUDI ARABIAN CONTRACT AND A 327 MILLION KUWAIT ORDER HE CALLED 1992 A GOOD YEAR FOR OUR STOCKHOLDERS IN A DIFFICULT ECONOMIC ENVIRONMENT RAYTHEON'S TOTAL BACKLOG AT DEC 31 WAS 727 BILLION INCLUDING FUNDED US GOVERNMENT ORDERS OF 531 BILLION AT THE END OF 1991 TOTAL BACKLOG WAS 797 BILLION INCLUDING FUNDED US ORDERS OF 576 BILLION FOR ALL OF 1992 NET INCOME ROSE TO 6351 MILLION OR 472 A SHARE FROM 5918 MILLION OR 448 A SHARE IN 1991 SALES EASED TO 906 BILLION FROM 927 BILLION 9301220187 930122 SHORT INTEREST ON BIG BOARD DECLINES 78 DISNEY FEDERATED REMAIN ATOP LIST FOR JANUARY SPRINT'S LEVEL SURGES BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST DROPPED 78 ON THE NEW YORK STOCK EXCHANGE BELOW THE BILLIONSHARE MARK IT HAD TOPPED IN DECEMBER BIG BOARD SHORT INTEREST FELL TO ABOUT 932 MILLION SHARES FOR THE MIDJANUARY TRADING MONTH IT WAS THE SIXTH CONSECUTIVE MONTH IN WHICH THE LEVEL EXCEEDED 900 MILLION SHARES SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE WAS OFF 37 DESPITE ITS HISTORIC LEVELS OF RECENT MONTHS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS WALT DISNEY CO FEDERATED DEPARTMENT STORES INC AND BLOCKBUSTER ENTERTAINMENT CO REMAINED AT THE TOP OF THE SHORTINTEREST LIST BLOCKBUSTER AND DISNEY HAVE BEEN AMONG THE HIGHEST SHORTINTEREST COMPANIES FOR A WHILE SHORT INTEREST IN FEDERATED HOWEVER HAS SHOT UP IN RECENT MONTHS AFTER THE RETAILER ANNOUNCED IT WAS LIFTING TRANSFER RESTRICTIONS ON MANY OF ITS SHARES WHICH WERE IMPOSED AS PART OF ITS CHAPTER 11 REORGANIZATION EARLIER IN 1992 DISNEY SHORT INTEREST TOTALED 147 MILLION SHARES DOWN FROM 155 MILLION AT MIDDECEMBER FEDERATED'S WAS 139 MILLION UP FROM 134 MILLION AND BLOCKBUSTER'S WAS 11 MILLION DOWN FROM 127 MILLION SHORT INTEREST IN SPRINT CORP ROSE SHARPLY TO 112 MILLION SHARES FROM 76 MILLION THE TELECOMMUNICATIONS COMPANY'S ACQUISITION OF CENTEL CORP IS STILL PENDING AND THE INCREASE IN SHORT INTEREST COULD BE A RESULT OF MERGERRELATED ARBITRAGE TRADING NEW YORK STOCK EXCHANGE SHORT INTEREST FELL AT THE JAN 15 SETTLEMENT DATE TO 931834254 SHARES FROM 1010966690 SHARES AT MIDDECEMBER ON THE AMERICAN EXCHANGE SHORT INTEREST FELL TO 66930354 SHARES FROM AN ADJUSTED 69546161 SHARES THE MONTH INCLUDED THE 21 TRADING DAYS THROUGH JAN 8 AT MIDJANUARY 1992 SHORT VOLUME WAS 729399078 SHARES ON THE BIG BOARD TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH 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 FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING THE FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT AS MEASURED BY THE BIG BOARD SHORT INTEREST RATIO FELL TO 415 FROM 473 FOR THE MIDDECEMBER MONTH THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 21 TRADING DAYS WAS 224250000 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS THE FOLLOWING TABLES SHOW THE BIG BOARD AND AMEX ISSUES IN WHICH A SHORT INTEREST POSITION OF AT LEAST 150000 SHARES EXISTED AT MIDJANUARY OR IN WHICH THE SHORT POSITION HAD CHANGED BY AT LEAST 50000 SHARES SINCE MIDDECEMBER SEE ACCOMPANYING TABLES WSJ JAN 22 1993 9301220186 930122 FINANCING BUSINESS PLATINUM SOFTWARE CORP PLATINUM SOFTWARE CORP IRVINE CALIF SAID IT PLANS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION A PROPOSED PUBLIC OFFERING OF ABOUT 25 MILLION COMMON SHARES ONE MILLION OF THE SHARES WILL BE OFFERED BY THE COMPANY AND THE REST WILL BE OFFERED BY CERTAIN STOCKHOLDERS 9301220185 930122 DIVIDEND NEWS BRYN MAWR BANK CORP BRYN MAWR BANK CORP BRYN MAWR PA THIS BANK HOLDING COMPANY RESTORED ITS QUARTERLY DIVIDEND BASED ON THE IMPROVING ECONOMY ITS FIFTH CONSECUTIVE QUARTER OF SOLID EARNINGS AND A REDUCTION IN NONPERFORMING ASSETS BRYN MAWR DECLARED A QUARTERLY DIVIDEND OF 10 CENTS A SHARE PAYABLE MARCH 1 TO STOCK OF RECORD FEB 5 THE COMPANY LAST PAID A QUARTERLY DIVIDEND OF 15 CENTS A SHARE IN AUGUST 1991 9301220184 930122 FINANCING BUSINESS CANADIAN IMPERIAL BANK OF COMMERCE CANADIAN IMPERIAL BANK OF COMMERCE TORONTO SAID IT PLANS TO RAISE ABOUT 3062 MILLION THROUGH TWO PREFERRED SHARE ISSUES IN THE CANADIAN MARKET THE BANK SAID IT WILL ISSUE SIX MILLION NONCUMULATIVE CLASS A PREFERRED SHARES SERIES 12 AT 25 A SHARE TO YIELD 650 PROCEEDS FROM THE ISSUE WILL REACH 150 MILLION THE COMPANY SAID THE SECOND ISSUE DENOMINATED IN CANADIAN DOLLARS WILL BE AN OFFERING OF EIGHT MILLION NONCUMULATIVE CLASS A PREFERRED SHARES SERIES 13 AT 25 CANADIAN DOLLARS US1953 A SHARE TO YIELD 700 FOR TOTAL PROCEEDS OF C200 MILLION US1562 MILLION THE OFFERINGS WILL BE UNDERWRITTEN BY A GROUP OF INVESTMENT DEALERS LED BY WOOD GUNDY INC OF TORONTO THE EXPECTED CLOSING DATE FOR THE ISSUES IS FEB 11 9301220183 930122 TREASURY PLANS TO RAISE COMBINED 135 BILLION THROUGH NOTE SALES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 135 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 1525 BILLION OF TWOYEAR NOTES TUESDAY AND 115 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1324 BILLION IN MATURING TWO AND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED FEB 1 AND WILL MATURE JAN 31 1995 THE NEW FIVEYEAR NOTES WILL BE DATED FEB 1 AND WILL MATURE JAN 31 1998 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827J52 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827J45 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EST TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EST WEDNESDAY COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EST 9301220182 930122 GENERAL MOTORS FORD PLAN TO IDLE CAR PLANTS DETROIT GENERAL MOTORS CORP AND FORD MOTOR CO EACH PLAN TO IDLE AN ASSEMBLY PLANT BECAUSE OF SLOW SALES GM SAID IT WILL IDLE FOR ONE WEEK BEGINNING NEXT WEEK ITS WILLOW RUN MICH ASSEMBLY PLANT WHICH BUILDS THE CHEVROLET CAPRICE GM SAID IT SCHEDULED OVERTIME AT ITS TRUCK ASSEMBLY PLANTS IN JANESVILLE WIS FLINT MICH FORT WAYNE IND AND OSHAWA AND SCARBOROUGH ONTARIO FORD SAID BEGINNING MONDAY IT WILL IDLE FOR TWO WEEKS ITS OAKVILLE ONTARIO ASSEMBLY PLANT WHICH BUILDS THE FORD TEMPO AND MERCURY TOPAZ FORD SAID OVERTIME WAS PLANNED THIS WEEK AT ITS CAR ASSEMBLY PLANTS IN ATLANTA CHICAGO AND WIXOM MICH AND AT ITS TRUCK ASSEMBLY PLANTS IN KANSAS CITY MO LOUISVILLE KY AND AVON LAKE OHIO THE CAR ASSEMBLY PLANTS BUILD THE FORD TAURUS MERCURY SABLE LINCOLN CONTINENTAL TOWN CAR AND MARK VIII AND THE TRUCK ASSEMBLY PLANTS BUILD LIGHT TRUCKS AND MINIVANS CHRYSLER CORP SAID SATURDAY OVERTIME IS PLANNED AT ITS ASSEMBLY PLANTS IN DETROIT ST LOUIS WARREN MICH AND WINDSOR ONTARIO THOSE ASSEMBLY PLANTS BUILD SPORTUTILITY VEHICLES MINIVANS AND LIGHT TRUCKS ALTOGETHER THE 10 MAJOR AUTO MAKERS PLAN TO BUILD 102437 CARS THIS WEEK UP 76 FROM THE 95234 BUILT A YEAR AGO 9301220181 930122 HOME INTENSIVE CARE REJECTS GRACE'S BID VALUED AT 94 MILLION MIAMI HOME INTENSIVE CARE INC SAID ITS BOARD REJECTED AS INADEQUATE A 6 A SHARE TAKEOVER BID FROM WR GRACE & CO THE UNSOLICITED PROPOSAL AMOUNTING TO SOME 94 MILLION WAS MADE LAST WEEK BY THE SPECIALTY CHEMICALS COMPANY AT THE TIME WR GRACE BOCA RATON FLA ASKED HOME INTENSIVE CARE TO RESPOND BY WEDNESDAY A SPOKESWOMAN FOR HOME INTENSIVE CARE SAID YESTERDAY THAT THE COMPANY'S DIRECTORS REACHED THEIR DECISION AFTER HAMBRECHT & QUIST HOME INTENSIVE CARE'S FINANCIAL ADVISER SAID THE BID WAS TOO LOW THE BOARD DIDN'T SAY WHAT OFFER WOULD BE ACCEPTABLE THE SPOKESWOMAN SAID THE DIRECTORS ALSO REFRAINED FROM ANY DECISION ON PURSUING A MERGER WITH WR GRACE SAID JAMES P CEFARATTI PRESIDENT AND CHIEF EXECUTIVE OF HOME INTENSIVE CARE IN A STATEMENT A SPOKESMAN FOR WR GRACE DECLINED COMMENT ON THE DECISION WR GRACE THROUGH ITS NATIONAL MEDICAL CARE SUBSIDIARY IS ONE OF THE LARGEST PROVIDERS OF KIDNEY DIALYSIS SERVICES IN THE COUNTRY WITH MORE THAN 400 CENTERS HOME INTENSIVE CARE WHICH PRIMARILY PROVIDES INFUSION THERAPY TO PATIENTS IN THEIR HOMES ALSO OPERATES 13 DIALYSIS CLINICS IN OVERTHECOUNTER TRADING YESTERDAY HOME INTENSIVE CARE CLOSED AT 625 A SHARE UP 25 CENTS IN NEW YORK STOCK EXCHANGE TRADING WR GRACE CLOSED AT 38375 A SHARE DOWN 50 CENTS 9301220179 930122 BUSINESS BRIEF AMSOUTH BANCORP FLORIDA BANK TO BE ACQUIRED IN 934 MILLION TRANSACTION AMSOUTH BANCORP BIRMINGHAM ALA SAID IT AGREED TO ACQUIRE FIRST NATIONAL BANK OF CLEARWATER FLA IN A TRANSACTION VALUED AT 934 MILLION HOLDERS WOULD RECEIVE SIX AMSOUTH SHARES FOR EACH OF FIRST NATIONAL'S 480000 SHARES OUTSTANDING AMSOUTH ALSO WILL EXCHANGE 120000 SHARES FOR SECURITIES OF MICKLER CORP FIRST NATIONAL'S HOLDING COMPANY IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMSOUTH CLOSED UNCHANGED AT 31125 A SHARE GIVING THE TRANSACTION AN INDICATED VALUE OF 934 MILLION THE ACQUISITION IS SUBJECT TO APPROVAL BY REGULATORS AND FIRST NATIONAL HOLDERS AMSOUTH HAS 975 BILLION IN ASSETS AND OFFICES IN ALABAMA TENNESSEE AND FLORIDA FIRST NATIONAL WITH 10 OFFICES IN PINELLAS COUNTY FLA HAS ASSETS OF 458 MILLION AND A TRUST PORTFOLIO WITH ALMOST 800 MILLION IN ASSETS 9301220178 930122 GERIATRIC & MEDICAL NEW NAME PHILADELPHIA GERIATRIC & MEDICAL CENTERS INC SAID SHAREHOLDERS APPROVED A NAME CHANGE TO GERIATRIC & MEDICAL COS EFFECTIVE DEC 31 1992 THE COMPANY SAID THE NEW NAME MORE ACCURATELY REFLECTS THE SCOPE AND NATURE OF ITS BUSINESS THE COMPANY'S COMMON STOCK SYMBOL REMAINS GEMC IN THE OVERTHECOUNTER MARKET 9301220177 930122 DANA SEES PROFIT IN 1993 MEETING ANALYSTS' FORECASTS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL TOLEDO OHIO DANA CORP SAID 1993 EARNINGS WILL APPROXIMATE ANALYSTS ESTIMATES OF 265 A SHARE BEFORE ACCOUNTING CHANGES DANA DOES NOT FORECAST ITS EARNINGS BUT THE COMPANY SAYS IT FEELS COMFORTABLE WITH ANALYSTS ESTIMATES AVERAGING 265 A SHARE THAT WOULD BE UP FROM 1992 EARNINGS EXPECTED BY ANALYSTS TO BE AT ABOUT 173 A SHARE BEFORE TWO NONCASH ACCOUNTING CHARGES THE MANUFACTURER OF AUTO AND TRUCK PARTS HAD NET INCOME OF 135 MILLION OR 33 CENTS A SHARE FOR 1991 THE TWO NONCASH ACCOUNTING CHARGES FOR LAST YEAR A ONETIME CHARGE OF 440 MILLION AND A 25 MILLION CONTINUING CHARGE WILL RESULT IN A SUBSTANTIAL LOSS FOR THE COMPANY EXPECTED TO BE ABOUT 8 A SHARE THE CHARGES ARE NEEDED TO MEET NEW FEDERAL DEMANDS FOR ACCOUNTING RETIREE HEALTH BENEFITS CONTINUED SALES GROWTH PUSHED BY A REBOUNDING US AUTO INDUSTRY IS EXPECTED TO INCREASE PROFITS IN THE CURRENT YEAR SAID SOUTHWOOD J MORCOTT CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE HAD A BETTER YEAR IN '92 THAN IN '91 AND WE'RE GOING TO HAVE A BETTER YEAR IN '93 THAN '92 HE ADDED THE CONTINUING CHARGE FOR HEALTHCARE BENEFITS SHOULD MORE THAN 40 LOWER THAN THE 1992 CHARGE DANA SAID IN ADDITION TO SUPPLYING THE BIG THREE AUTO MAKERS DANA SAYS IT IS WELLPOSITIONED TO BENEFIT FROM INCREASING PRESSURE ON JAPANESE FIRMS TO PURCHASE PARTS FROM US SUPPLIERS IT IS SELLING DRIVESHAFTS TO TOYOTA MOTOR CORP FOR ITS NEW T100 MIDSIZE PICKUP AND ALSO SELLS THE FRAME FOR A PICKUP BUILT AT A CALIFORNIA ASSEMBLY PLANT FOR A JOINT VENTURE BETWEEN TOYOTA AND GENERAL MOTORS CORP BUSINESS WITH JAPANESE FIRMS IS ONE OF THE SMALLEST BUT MOST RAPIDLY GROWING SEGMENTS OF DANA'S MARKET MR MORCOTT SAID WORLDWIDE WE DO 180 MILLION IN BUSINESS WITH THE JAPANESE THAT'S NOT A LOT FOR A 5 BILLION COMPANY HE SAID DANA HAS HAD OFFICES IN JAPAN FOR THE PAST 12 YEARS DANA IS TRYING TO MAKE ITSELF RECESSIONPROOF BY EXPANDING ITS PRESENCE ABROAD TO 50 OF SALES EVENTUALLY FROM ABOUT 35 AND BY EXPANDING ITS SALES OF AFTERMARKET PARTS ABOUT 25 TO 30 OF DANA'S SALES ARE FOR LIGHT TRUCK PARTS A BOOMING SEGMENT OF THE US VEHICLE MARKET THE COMPANY HAS BENEFITED FROM THE POPULARITY OF SUCH VEHICLES AS THE FORD EXPLORER AND THE JEEP CHEROKEE BOTH OF WHICH IT SUPPLIES PARTS FOR 9301220176 930122 WHO'S NEWS TETRA TECHNOLOGIES INC TETRA TECHNOLOGIES INC WOODLANDS TEXAS ALLEN T MCINNES FORMER EXECUTIVE VICE PRESIDENT OF TENNECO INC WAS NAMED TO THE BOARD OF THIS ENVIRONMENTALSERVICES COMPANY THE ADDITION OF 57YEAROLD MR MCINNES INCREASES THE BOARD TO EIGHT MEMBERS 9301220175 930122 LEISURE & ARTS BILL BILL BILL BILL BILL BILL BILL BILL BILL BY AMY GAMERMAN WASHINGTON DC THERE WE WERE ON THE WEST FRONT OF THE CAPITOL WITH THE SWEARINGIN OF OUR 42ND PRESIDENT JUST MOMENTS AWAY RED WHITE AND BLUE BUNTING HUNG FROM EVERY CREVICE FLAGS WERE WAVING THE DRUMS AND TRUMPETS OF THE US MARINE BAND FILLED THE AIR AND THEN WE SAW HIM THERE'S WARREN BEATTY A WOMAN BEHIND ME GASPED THIS INAUGURATION HAD SOMETHING FOR EVERYONE FOR ME THE DAY HAD BEGUN BEFORE DAWN IN YET ANOTHER LINE THIS TIME TO PASS THROUGH METAL DETECTORS ON A CORDONEDOFF STREET BEFORE ENTERING THE METROPOLITAN AFRICAN METHODIST EPISCOPAL CHURCH TO BE INVITED TO THIS MORNING PRAYER SERVICE IT HELPED TO BE JESSE JACKSON WARREN CHRISTOPHER OR SOMEONE WITH REAL CLOUT LIKE SHEILA DAY I'M FRIENDS WITH BILL CLINTON'S MOTHER SAID MS DAY I DESIGNED HER DRESS FOR THE INAUGURATION THE TOP PART IS WHITE VELVET THE BOTTOM IS BLACK CHIFFON THEN SHE SWEPT THROUGH THE METAL DETECTOR READY TO PRAY FOR HER NEW PRESIDENT AND ALSO ONE SUSPECTS THAT HER VELVET GUSSETS WOULD HOLD THROUGH THE NIGHT AND THEN THERE WAS DORIS CARPENTER A GREATGRANDMOTHER WHO DIDN'T BOTHER WITH AN INVITATION SHE EVADED THE SECURITY CHECKPOINTS AT EITHER END OF THE BLOCK TO APPEAR CLUTCHING HER CAMERA JUST A SNAPSHOT AWAY FROM THE HEAVILY GUARDED CHURCH DOOR I CAME OVER THROUGH THE BACK DOOR OF MY BUILDING SAID MS CARPENTER POINTING TO A SIDE ALLEY THAT THE SECRET SERVICE HAD OVERLOOKED I WAS GOING TO TAKE A PICTURE OF HIM AND SEND IT TO MY GRANDBABIES UNAMUSED THE SECRET SERVICE HUSTLED HER AWAY BEFORE SHE COULD SHOOT MR CLINTON AT THE SWEARINGIN THE CHOIR SANG THE CANNONS BOOMED AND SOMEWHERE A PHONE RANG 'TIS A GIFT TO BE SIMPLE 'TIS A GIFT TO BE FREE SANG MARILYN HORNE OVER THE SQUEAL OF A CELLULAR PHONE SOMEWHERE BELOW THE PRESIDENTIAL PODIUM WHOEVER IT WAS CALLED BACK WHILE MR CLINTON SPOKE ABOUT RESPONSIBILITY AND FORCING THE SPRING THE PHONE RANG A THIRD TIME AS THE POET MAYA ANGELOU RECITED HER PAEAN TO AMERICA'S DIVERSITY RHYMING GREEK WITH SHEIK JEW WITH SIOUX DOWN IN THE CROWD WE WERE ACTUALLY LIVING A KIND OF POETRY OF INCLUSION I DIDN'T SEE ANY OBVIOUS SHEIKS BUT THERE WAS EVERY IMAGINABLE KIND OF PERSON CAUGHT IN THE LOGJAM OF BODIES AFTER THE CEREMONY CAME TO AN END THE BUSHES WHIZZED AWAY FROM THE HUMAN MAELSTROM TO TEXAN OBLIVION IN A MILITARY HELICOPTER I LOST WARREN BEATTY IN THE MOB BUT ETHEL KENNEDY AND OTHER RECOGNIZABLE BELTWAYERS WERE MILLING TOWARD THE PARADE ROUTE VENDORS WERE SELLING BUTTONS AND STICKERS URGING BLOW BILL BLOW AND HILLARY IN '96 ERNESTINE DOVE HAD SET UP CAMP AT ONE BARRICADE AT 9 AM WITH TINY FOLDING CHAIRS FOR HER THREE SMALL GRANDCHILDREN BUT DAVID MIXNER A SENIOR CLINTON CAMPAIGN ADVISER HAD A SEAT IN THE BLEACHERS RIGHT ACROSS THE STREET FROM THE PRESIDENTIAL REVIEWING STAND THIS IS SO EXCITING HE KEPT SAYING AS OTHER FRIENDS OF BILL EMERGED FROM THEIR LIMOS ACROSS THE WAY BOWTIED WAITERS WERE SERVING HOT DRINKS TO THE FIRST FAMILIES AND THEIR GUESTS AFTER THEY ARRIVED FROM THEIR STROLL DOWN PENNSYLVANIA AVENUE AS THE SCORES OF HIGH SCHOOL MARCHING BANDS AND FLOATS WENT BY THE NEW PRESIDENT COULD BE SEEN STIFLING THE OCCASIONAL YAWN BUT HE ROUSED HIMSELF TO CHEER HIS OLD GREENANDWHITE CAMPAIGN BUS MOUNTED ON A FLOAT AND TO HUG THE VERY SHORT AND VERY VIVACIOUS FEMALE CELEBRITY WHO HAD MADE A SUDDEN APPEARANCE IN HIS BOX IT'S DR RUTH A CAMERAMAN YELLED WE COULD ONLY SPECULATE ABOUT THE KIND OF ADVICE SHE MIGHT BE GIVING THE NEW PRESIDENT MEANWHILE VICE PRESIDENT AL GORE WAS GIVING THE DOUBLE THUMBSUP TO THE FLEET OF NATURAL GAS AND ELECTRICITYPOWERED CARS THAT MOTORED BY BUT MANY PARADE VIEWERS HAD ALREADY STARTED TO LEAVE THE STANDS TO PRIMP FOR THE EVENING'S INAUGURAL BALLS AND TO STEEL THEMSELVES FOR SOME HARD DUTY IN THE SERVICE OF A FORCED SPRING MANY PARTYGOERS BRAVED THE COLD AND SHOWED UP COATLESS HAVING HEARD HORROR STORIES ABOUT THE ENDLESS COATCHECK LINES AT PAST INAUGURAL BALLS BALL COORDINATORS HAD ADVISED THEIR OWN VOLUNTEER WORKERS TO WEAR COMFORTABLE SHOES EAT BEFORE YOU COME A COORDINATOR FOR THE TENNESSEE BALL WARNED THAT WAS ADVICE WE ALL COULD HAVE USED OVER AT THE ARKANSAS BALL YOU WERE LUCKY TO STUMBLE ACROSS THE RARE PLASTIC TUB OF PRETZELS FOR MOST GUESTS THE EVENING'S BIG ACTIVITY WAS STANDING IN LINE THERE WERE LINES TO BUY DRINK TICKETS LINES TO EXCHANGE TICKETS FOR DRINKS ENDLESS LINES TO GET TO THE RESTROOMS AND LINES THAT DIDN'T SEEM TO LEAD ANYWHERE AT ALL WHY ARE YOU IN LINE I ASKED A WOMAN IN BLACK SEQUINS WHO WAS IN A QUEUE APPARENTLY LEADING NOWHERE WE DON'T KNOW THERE'S NOTHING ELSE TO DO SHE REPLIED ANYWAY YOU COULDN'T SIT DOWN UNLESS OF COURSE YOU SHELLED OUT 300 FOR A SEAT IN ONE OF THE SNACKANDCHAMPAGNESTOCKED ENCLOSURES ONE WOMAN SAVED HER MONEY AND BROUGHT HER OWN FOLDING CHAIR OTHERS JUST KICKED OFF THEIR HEELS AND SAT ON THE FLOOR THERE WAS A SUDDEN FLURRY OF ACTIVITY AS A BLOND WOMAN PURSUED BY BRIGHT TV LIGHTS HURRIED ACROSS THE FLOOR IT'S BARBRA STREISAND SOMEONE GASPED SHE'S GOING TO SING NO SHE WAS GOING TO TALK TO KATIE COURIC ENSCONCED ON A THRONELIKE PLATFORM IN ONE CORNER OF THE CONVENTION CENTER THE INTERVIEW FINISHED BARBRA GAVE A QUEENLY WAVE AND HEADED FOR THE EXIT WOMEN AT THE ARKANSAS BALL DRIPPED SEQUINS FAUX PEARLS AND BEADWORK FROM TIGHT LOWCUT GOWNS OF THE SORT FAVORED BY BEAUTYPAGEANT CONTESTANTS BUT OVER AT THE MTV BALL THE MOOD WAS MORE BEVERLY HILLS 90210 THERE THE CROWD WAS BIGGER ON SHORT HAIR AND BLACK DRESSES AND EVEN THE OCCASIONAL NOSE RING OR TATTOO UP ON STAGE FIRST BROTHER ROGER CLINTON SANG IT'S BEEN A LONG LONG TIME COMING BUT NOW IT HAD AND AS THIS FIRST NIGHT MADE CLEAR SOME THINGS STAY EXACTLY THE SAME WHEN IT COMES TO INAUGURAL BALLS NOT ONLY IS THERE NO FREE LUNCH THERE IS NO FREE DINNER 9301220174 930122 SILICON VALLEY POSTS NET INCOME SAN JOSE CALIF SILICON VALLEY GROUP AIDED BY INCREASED SALES FOR ITS SEMICONDUCTOR MANUFACTURING EQUIPMENT POSTED A FISCAL FIRSTQUARTER NET INCOME OF 691000 OR THREE CENTS A SHARE COMPARED WITH A LOSS OF 12 MILLION OR EIGHT CENTS A SHARE A YEAR EARLIER REVENUE WAS UP 24 TO 541 MILLION FROM 437 MILLION IN OVERTHECOUNTER TRADING YESTERDAY SILICON VALLEY FELL 375 CENTS TO 7625 9301220173 930122 GPU UNIT TO POST CHARGE OVER REACTOR AT THREE MILE ISLAND NEW YORK METROPOLITAN EDISON CO SAID IT WOULD POST A 112 MILLION PRETAX CHARGE AFTER STATE REGULATORS REJECTED THE GPU CORP UNIT'S REQUEST TO HAVE CUSTOMERS SHOULDER THE DECOMMISSIONING COSTS OF THE DAMAGED REACTOR AT THREE MILE ISLAND PENNSYLVANIA ELECTRIC CO ANOTHER GPU OPERATING UNIT SAID IT WOULD RECORD A PRETAX 56 MILLION CHARGE IN RELATION TO THE RATECASE DECISION GPU'S THIRD UTILITY JERSEY CENTRAL POWER & LIGHT CO WHICH HAS A 25 STAKE IN THE TROUBLED REACTOR HASN'T DECIDED HOW IT PLANS TO PAY ITS PART OF THE DECOMMISSIONING COSTS METROPOLITAN EDISON WHICH OWNS 50 OF THE TWO THREE MILE ISLAND UNITS POSTED A 40 MILLION PRETAX CHARGE IN 1991 FOR THE DECOMMISSIONING A SPOKESWOMAN FOR THE COMPANY SAID IT REMAINS UNCERTAIN IF THE COMPANY WILL REQUIRE FUTURE CHARGES TO FULLY DECOMMISSION THE PLANT THE STATE REGULATORY COMMISSION WHICH FORMALLY ADOPTED A PREVIOUS 21 STRAW VOTE EARLIER THIS MONTH AWARDED METROPOLITAN EDISON A NET RATE INCREASE OF 58 MILLION THE REGULATORS DID ALLOW THE UTILITY TO USE A RATE INCREASE TO FUND EVENTUAL DECOMMISSIONING OF THE SECOND THREE MILE ISLAND UNIT THAT IS STILL IN OPERATION THE POWER UTILITY HAD REQUESTED A 68 MILLION ANNUAL RATE INCREASE ALONG WITH AN 117 MILLION RATE DECREASE RELATED TO TAX ADJUSTMENTS AND A 136 MILLION RATE DECREASE RELATED TO REDUCED ENERGY COSTS THE COMMISSION APPROVED THE DECREASES BUT ONLY 311 MILLION OF THE REQUESTED ANNUAL INCREASE METROPOLITAN EDISON REAFFIRMED ITS OBLIGATION TO DECOMMISSION THE TWO THREE MILE ISLAND NUCLEAR PLANTS BUT FRED D HAFER PRESIDENT OF METROPOLITAN EDISON SAID THE DECISION HAS MADE THE TASK OF MEETING OUR OTHER IMPORTANT UTILITY OBLIGATIONS MUCH MORE DIFFICULT RESPONDING TO THE RATE DECISION STANDARD & POOR'S CORP INDICATED THAT IT WOULD RETAIN ITS CURRENT DEBT RATINGS BUT LIKELY CHANGE THE OUTLOOK OF METROPOLITAN EDISON PENNSYLVANIA ELECTRIC AND JERSEY CENTRAL POWER & LIGHT TO NEGATIVE MOODY'S INVESTORS SERVICE CURRENTLY HAS THE THREE GPU OPERATING UNITS UNDER REVIEW FOR A POSSIBLE DOWNGRADE STEMMING FROM THE RATECASE RULING 9301220171 930122 MONEY FUND ASSETS DROPPED 479 BILLION DURING LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL 479 BILLION TO 59042 BILLION FROM 59521 BILLION DURING THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 609 RETAIL MONEY MARKET MUTUAL FUNDS FELL 6751 MILLION TO 38665 BILLION THE TRADE GROUP SAID ASSETS OF 378 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE 1845 MILLION TO 30403 BILLION ASSETS OF 231 RETAIL TAXEXEMPT FUNDS FELL 8596 MILLION TO 8262 BILLION ASSETS OF THE 275 INSTITUTIONAL MONEY MARKET FUNDS FELL 408 BILLION TO 20377 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 224 TAXABLE MONEY MARKET FUNDS FELL 347 BILLION TO 18186 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL 6061 MILLION TO 2191 BILLION 9301220170 930122 WHO'S NEWS BARNETT BANKS INC BARNETT BANKS INC JACKSONVILLE FLA ARMANDO M CODINA AND TOM L RANKIN WERE NAMED DIRECTORS OF THIS BANKING COMPANY INCREASING THE BOARD'S SIZE TO 15 DIRECTORS MR CODINA 45 YEARS OLD IS FOUNDER AND CHAIRMAN OF THE CODINA BUSH GROUP INC A REAL ESTATE INVESTMENT DEVELOPMENT AND MANAGEMENT FIRM IN CORAL GABLES FLA MR RANKIN 52 IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LYKES BROS INC A CITRUS AGRICULTURAL MEAT PACKING AND SHIPPING COMPANY IN TAMPA FLA 9301220169 930122 WHO'S NEWS KERRMCGEE CORP KERRMCGEE CORP OKLAHOMA CITY JERE W MCKENNY 63 YEARS OLD WILL RETIRE AS PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENERGY AND CHEMICAL CONCERN EFFECTIVE FEB 28 UNTIL THE COMPANY NAMES A SUCCESSOR MR MCKENNY'S RESPONSIBILITIES WILL BE ASSUMED BY CHAIRMAN AND CHIEF EXECUTIVE OFFICER FRANK A MCPHERSON 9301220168 930122 QUAKER OATS TO BUY BACK STOCK CHICAGO QUAKER OATS CO SAID ITS BOARD HAS AUTHORIZED THE PURCHASE OF AS MANY AS THREE MILLION COMMON SHARES THE FOOD AND PETFOOD CONCERN SAID THE SHARES WILL BE REPURCHASED PERIODICALLY THROUGH OPENMARKET PURCHASES AND PRIVATELY NEGOTIATED TRANSACTIONS QUAKER OATS HAS 72 MILLION SHARES OUTSTANDING SINCE 1985 QUAKER HAS REPURCHASED 17 MILLION SHARES THROUGH FIVE STOCK REPURCHASE PROGRAMS 9301220167 930122 AMERICAN OIL & GAS STOCK HOUSTON AMERICAN OIL & GAS CORP SAID ALL SHARES OF ITS CONVERTIBLE PREFERRED CALLED FOR REDEMPTION WERE CONVERTED INTO 24 MILLION COMMON SHARES THE CONVERSION BROUGHT TOTAL COMMON SHARES OUTSTANDING TO ABOUT 257 MILLION AND ELIMINATED THE PREFERRED DIVIDEND OF 17 MILLION A YEAR SAID THE NATURAL GAS GATHERING PROCESSING AND TRANSPORTATION COMPANY 9301220166 930122 INTERNATIONAL BIGGEST SWEDISH BANK ACTS IN BID TO SURVIVE ACUTE FINANCIAL CRISIS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDEN'S BIGGEST BANK TOOK THE FIRST STEP TOWARD A SOCALLED GOOD BANK/BAD BANK RESTRUCTURING AND SUBSEQUENT STATESUPPORTED RECAPITALIZATION TO SURVIVE ITS CURRENT ACUTE FINANCIAL CRISIS THE ACTION PLAN APPROVED BY DIRECTORS OF SKANDINAVISKA ENSKILDA BANKEN AT A MARATHON BOARD MEETING YESTERDAY SHUFFLED SENIOR MANAGEMENT DISMANTLED AN OUTMODED NETWORK OF REGIONAL FIEFDOMS AND SCALED BACK INTERNATIONAL AMBITIONS IN FAVOR OF RETRENCHMENT TO CORE SCANDINAVIAN MARKETS BJOERN SVEDBERG CHIEF EXECUTIVE OFFICER ACKNOWLEDGED THAT A TOUGH COSTREDUCTION PROGRAM WILL LEAD TO MAJOR STAFF CUTS TO BE ANNOUNCED SOON BUT THE MOST STRIKING MOVE WAS CREATION OF A SPECIAL BAD BANK DIVISION TO WHICH THE SE BANKEN WILL SHIFT NONPERFORMING CREDITS AND ASSETS INHERITED AFTER LOAN DEFAULTS MR SVEDBERG DECLINED TO DISCLOSE THE AMOUNT OF LOANS THAT WILL BE TRANSFERRED TO THE NEW DIVISION I CAN'T TALK ABOUT THAT YET PARTLY BECAUSE IT'S CURRENTLY THE SUBJECT OF DISCUSSION WITH THE GOVERNMENT WHICH MAY END UP ASSISTING US THROUGH SOME FORM OF FINANCIAL SUPPORT MR SVEDBERG SAID IN A TELEPHONE INTERVIEW MR SVEDBERG DISCLOSED LAST MONTH THAT SE BANKEN HAD APPROACHED THE STATE TO DISCUSS POSSIBLE FINANCIAL SUPPORT MASSIVE LOSSES HAVE ERODED THE BANK'S ONCE FORMIDABLE CAPITAL BASE AND WITHOUT ASSISTANCE IT WOULD FALL BELOW MINIMUM CAPITAL ADEQUACY STANDARDS EARLY THIS YEAR MR SVEDBERG SAID AT THAT TIME 9301220165 930122 WHO'S NEWS OUTBOARD MARINE CORP OUTBOARD MARINE CORP WAUKEGAN ILL JAMES C CHAPMAN 61YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN SUCCEEDING CHARLES D STRANG WHO CONTINUES AS A MEMBER OF THE BOARD THE COMPANY ALSO SAID RONALD J JENSEN VICE PRESIDENT MANUFACTURING OF THE COMPANY'S MARINE POWER PRODUCTS GROUP WAS NAMED VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S INTERNATIONAL GROUP SUCCEEDING DENNIS L JACOBSON WHO TOOK A POST WITH ANOTHER COMPANY 9301220164 930122 VOLVO CAR SALES FELL 18 IN '92 TO 303800 UNITS SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB VOLVO THE SWEDISH AUTO MAKER SAID CAR SALES FELL 18 TO 303800 UNITS IN 1992 AS THE RECESSION REDUCED PURCHASING POWER ON ITS MOST IMPORTANT MARKETS THE FALL FROM 309300 UNITS IN 1991 MIRRORED WEAK DEMAND FOR CARS IN MOST MARKETS ON A POSITIVE NOTE VOLVO SAID THE US MARKET SHOWED ENCOURAGING SIGNS TOWARD THE END OF THE YEAR VOLVO SOLD 67900 CARS IN THE US A SMALL IMPROVEMENT FROM THE 67200 SOLD A YEAR EARLIER THE INCREASE WAS ATTRIBUTED TO THE LAST TWO MONTHS OF THE YEAR WHICH SAW THE INTRODUCTION OF THE VOLVO 850 GLT ON THE NORTH AMERICAN MARKET ON THE DOMESTIC MARKET SALES DECLINED TO 35800 UNITS FROM 37900 A YEAR EARLIER THE 55 DROP WAS HOWEVER SMALLER THAN THE 22 CONTRACTION IN THE TOTAL SWEDISH AUTO MARKET AND VOLVO MANAGED TO BOOST ITS DOMESTIC MARKET SHARE TO 23 IN THE YEAR FROM 202 A YEAR EARLIER AS AUTO SALES IN NORWAY AND DENMARK IMPROVED DURING THE YEAR VOLVO'S TOTAL SALES IN THE NORDIC REGION ROSE BY 200 CARS TO 47100 UNITS IN 1992 DESPITE A 12 DROP IN THE TOTAL MARKET OUTSIDE THE NORDIC REGION EUROPEAN SALES WERE MIXED IN BRITAIN AND GERMANY VOLVO SALES DECLINED BUT INCREASES WERE REGISTERED IN SPAIN ITALY AND FRANCE VOLVO SAID SALES WERE ALSO LOWER IN JAPAN WHERE FIERCE DOMESTIC COMPETITION AGGRAVATED AN OVERALL DOWNTURN IN THE MARKET IN RUSSIA VOLVO SOLD 4900 CARS IN 1992 UP FROM 1700 A YEAR EARLIER VOLVO ALSO SAID A COMPLETE SERVICE AND SALES CENTER WILL BE BUILT IN MOSCOW MEANWHILE VOLVO SAID IT RECEIVED ORDERS FOR DELIVERIES TO SYRIA AND CHINA IN 1993 VOLVO WILL DELIVER 2200 CARS TO SYRIA UNDER A CONTRACT SIGNED WITH THE STATEOWNED SAYRAT COMPANY WHICH IS RESPONSIBLE FOR STATE PURCHASES OF CARS ALSO THE VOLVO CAR COMPONENTS UNIT WON AN ORDER TO SUPPLY 1000 ENGINES AND GEAR BOXES TO A CHINESE MAKER OF MINIBUSES TIANJIN SANFENG MINIBUS CO THE ORDER IS THE FIRST EVER RECEIVED BY VOLVO FROM CHINA FOR INDUSTRIAL PARTS THE ENGINES AND GEAR BOXES WILL BE MANUFACTURED BY VOLVO IN SWEDEN WITH DELIVERIES SET TO START IN THE FIRST HALF OF 1993 VOLVO SAID 9301220163 930122 WHO'S NEWS STRIDE RITE CORP STRIDE RITE CORP CAMBRIDGE MASS PAT SPAINHOUR WAS APPOINTED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF FINANCE AND OPERATIONS OF THIS SHOE COMPANY HE WAS PREVIOUSLY SENIOR VICE PRESIDENT OF SOURCING AT GAP INC STRIDE RITE ALSO NAMED JOHN KELLIHER VICE PRESIDENT OF FINANCE AND TREASURER BOTH MR SPAINHOUR AND MR KELLIHER WILL ASSUME THE RESPONSIBILITIES OF CHIEF FINANCIAL OFFICER WHEN JOHN PHELAN RETIRES ON JAN 31 MR SPAINHOUR REPORTS TO CHAIRMAN ERVIN SHAMES AND IS RESPONSIBLE FOR FINANCE AND PURCHASING AMONG OTHER DUTIES MR KELLIHER PREVIOUSLY CORPORATE CONTROLLER REPORTS TO MR SPAINHOUR 9301220162 930122 WHO'S NEWS LUKENS INC LUKENS INC COATESVILLE PA T GRANT JOHN WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF PLANNING STAINLESS STEEL AND RICHARD D LUZZI WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT HUMAN RESOURCES FOR THIS STEELMAKER DR JOHN 53 YEARS OLD WAS AN INDEPENDENT CONSULTANT AND BEFORE THAT A VICE PRESIDENT AT AXEL JOHNSON INC A STEEL MAKER OWNED BY SWEDISH INTERESTS MR LUZZI 41 WAS VICE PRESIDENT INTERNATIONAL HUMAN RESOURCES AT ROCKWELL INTERNATIONAL CORP 9301220161 930122 ERICSSON GETS AUSTRALIA ORDER STOCKHOLM TELEFON AB LM ERICSSON SAID IT RECEIVED AN ORDER VALUED AT 50 MILLION KRONOR 7 MILLION FROM TELECOM AUSTRALIA TO UPGRADE THE AUSTRALIAN TELEPHONE NETWORK THE ORDER COVERS 63 EXCHANGES IN THE NATIONAL NETWORK THE SWEDISH TELECOMMUNICATIONS GROUP SAID MANY SERVICES ARE CUSTOMDESIGNED TO TELECOM AUSTRALIA'S SPECIFICATIONS ERICSSON SAID ERICSSON AND TELECOM AUSTRALIA ALSO SIGNED A GENERAL AGREEMENT REGARDING JOINT MARKETING AND SALES OF EACH OTHER'S PRODUCTS 9301220160 930122 PANHANDLE EASTERN HAD HIGHER NET IN FOURTH PERIOD BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON PANHANDLE EASTERN CORP EXPECTS TO REPORT THAT FOURTHQUARTER EARNINGS ROSE AT LEAST 43 SAID DENNIS HENDRIX PANHANDLE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE THE NATURALGAS PIPELINE COMPANY HAD FOURTHQUARTER NET INCOME IN LINE WITH ANALYSTS' MOST OPTIMISTIC ESTIMATES OF 433 MILLION OR 40 CENTS A SHARE SAID MR HENDRIX WE MAY BE AROUND OR MAYBE A LITTLE BETTER THAN THE HIGH END OF THEIR FORECASTS HE SAID PANHANDLE'S IMPROVEMENT CAME LARGELY FROM TRANSPORTING HIGHER VOLUMES OF GAS EXPANDING PIPELINE CAPACITY BY INSTALLING LARGER PIPE AND MORE POWERFUL COMPRESSION SYSTEMS TO MOVE MORE GAS FASTER AND SIGNING UP NEW CUSTOMERS IN THE NORTHEAST WHERE THE COMPANY IS MORE AGGRESSIVELY COMPETING IN A TRADITIONAL DOMAIN OF THE FUELOIL INDUSTRY HE SAID THE COMPANY PLANS FURTHER EXPANSION INCLUDING MORE IN THE NORTHEAST THAT'S A MARKET THAT'S RELATIVELY UNSATURATED HE SAID HE ESTIMATED THAT PANHANDLE'S SPENDING ON PIPELINE EXPANSION IN 1993 WILL RISE IN THE RANGE OF 20 TO 24 FROM LAST YEAR'S 275 MILLION MR HENDRIX SAID PANHANDLE ALSO HELPED ITS PROFIT MARGINS BY GRADUALLY TRIMMING EMPLOYMENT THROUGH ATTRITION TO 5000 FROM 5300 LAST YEAR BUT THERE WERE NO LAYOFFS HE SAID PANHANDLE LIKE MOST OF THE GAS PIPELINE INDUSTRY HAS CONVERTED ITS OPERATIONS DURING THE LAST DECADE OF FEDERAL DEREGULATION TO BEING MAINLY A FUEL HAULER INSTEAD OF A MERCHANT LAST YEAR 80 OF THE GAS MOVING THROUGH PANHANDLE'S PIPELINES WAS OWNED BY EITHER PRODUCERS OR SUCH CUSTOMERS AS UTILITIES FACTORIES OR OTHER COMMERCIAL USERS PANHANDLE ACTED AS A MERCHANT BY TEMPORARILY OWNING ONLY 20 OF THE GAS IN ITS SYSTEM AS RECENTLY AS 10 YEARS AGO PANHANDLE ACTED AS THE MERCHANT FOR NEARLY ALL THE GAS IT MOVED FOR THE FULL YEAR 1992 MR HENDRIX SAID HE EXPECTS NET INCOME ROSE A LITTLE AHEAD OF ANALYSTS' MOST OPTIMISTIC ESTIMATES OF 119 MILLION OR 110 A SHARE EXCLUDING A THIRDQUARTER GAIN OF 577 MILLION OR 53 CENTS A SHARE FROM THE SETTLEMENT OF LONGSTANDING REGULATORY ISSUES REGARDING ITS LIQUEFIED NATURAL GAS PROJECT THE SETTLEMENT WAS APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION LAST SEPTEMBER HE SAID HE EXPECTS 1992 REVENUE TO BE ROUGHLY FLAT COMPARED WITH THE 245 BILLION REPORTED BY THE COMPANY IN 1991 BECAUSE OF RECENT FLUCTUATIONS IN GAS COSTS HE DECLINED TO ESTIMATE FOURTHQUARTER REVENUE YET SEPARATELY MOODY'S INVESTORS SERVICE INC SAID IT WILL REVIEW 25 BILLION OF PANHANDLE DEBT FOR POSSIBLE UPGRADE MOODY'S CITED RECENT IMPROVEMENT IN PANHANDLE'S CASH FLOW AND DEBT PROTECTION MEASURES AND THE RATINGS CONCERN SAID ITS REVIEW WILL LOOK AT WHETHER THOSE ADVANCES ARE SUSTAINABLE 9301220159 930122 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK THIS CLOSELY HELD INTERNATIONAL INSURANCE BROKER SAID IT NAMED 10 SENIOR EXECUTIVES AS MANAGING PRINCIPALS GIVING THEM OWNERSHIP STAKES IN THE FIRM NEW PRINCIPALS WHO JOIN 35 DIRECTORS INCLUDE SENIOR VICE PRESIDENTS RICHARD B BLACKMAN 52 YEARS OLD SAN FRANCISCO J CAMERON CAMPBELL 49 DALLAS LAWRENCE I GENEEN 48 MIAMI JOHN E JENNIGES 49 ATLANTA DANIEL L JONES 41 LOS ANGELES WILLIAM J KECKEISEN 49 HOUSTON DAN KNISE 37 WASHINGTON AND JOHN A MCMAHON 44 SAN DIEGO ALSO NAMED WERE OFFICERS FROM TWO UNITS OF JOHNSON & HIGGINS ROBERT F O'LEARY 60 PRESIDENT AND CHIEF OPERATING OFFICER WILLCOX REINSURANCE INTERMEDIARIES INC NEW YORK AND AAD STRIJBOS 51 MANAGING DIRECTOR MEES & ZOONEN ROTTERDAM THE NETHERLANDS 9301220158 930122 GORMANRUPP SETS 1992 CHARGES MANSFIELD OHIO GORMANRUPP CO SAID 1992 EARNINGS WILL REFLECT NONCASH CHARGES OF 129 MILLION OR 226 A SHARE TO REFLECT AN ACCOUNTING CHANGE REQUIRING COMPANIES TO FULLY ACCRUE THE COST OF POSTRETIREMENT BENEFITS FOR EMPLOYEES THE COMPANY HAD 1991 NET INCOME OF 77 MILLION OR 201 A SHARE THE MAKER OF PUMPING EQUIPMENT SAID IT WILL RESTATE FIRSTQUARTER EARNINGS TO INCLUDE A ONETIME CHARGE OF 118 MILLION OR 206 A SHARE FOR THE CUMULATIVE COST OF PROVIDING RETIREE BENEFITS ACCRUED THROUGH 1991 THE 1992 RESULTS WILL ALSO INCLUDE A CHARGE OF 11 MILLION OR 20 CENTS A SHARE TO REFLECT THE ONGOING IMPACT OF THE NEW ACCOUNTING RULE 9301220157 930122 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 267404 METRIC TONS IN THE WEEK ENDED SATURDAY A 15 INCREASE FROM 232493 TONS THE PREVIOUS WEEK AND A 76 INCREASE FROM 248599 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 220462 POUNDS PRODUCTION FOR THE YEAR TO DATE TOTALED 571893 TONS A 2 GAIN FROM 560878 TONS A YEAR EARLIER 9301220156 930122 WHO'S NEWS DIED JOSEPH A ALBERTSON 86 FOUNDER OF ALBERTSON'S INC A FOOD AND DRUG RETAIL COMPANY WEDNESDAY IN BOISE IDAHO 9301220155 930122 INTERNATIONAL SWEDISH INFLATION RATE STOCKHOLM SWEDEN'S INFLATION RATE FELL LAST YEAR TO ITS LOWEST LEVEL IN 33 YEARS AS CONSUMER PRICES INCREASED A MODEST 19 THE NATIONAL STATISTICS AGENCY REPORTED THE ANNUALIZED RATE GIVES SWEDEN ONE OF THE LOWEST INFLATION RATES IN THE WORLD AND REFLECTS THE SEVERE RECESSION INTO WHICH THE COUNTRY HAS SUNK ALTHOUGH EFFECTS FROM THE DEPRECIATION OF THE KRONA WILL BOOST INFLATION IN THE CURRENT YEAR MANY ECONOMISTS AGREE THE WEAK ECONOMY WILL LIMIT THE INCREASE 9301220154 930122 JENNY CRAIG EARNINGS MORE THAN TRIPLED FOR SECOND QUARTER DEL MAR CALIF DESPITE DISAPPOINTING OPERATING RESULTS JENNY CRAIG INC'S FISCAL SECONDQUARTER NET INCOME MORE THAN TRIPLED TO 68 MILLION OR 25 CENTS A SHARE REFLECTING A BIG CHARGE IN THE YEAREARLIER QUARTER IN THE QUARTER ENDED DEC 31 1991 NET WAS 21 MILLION OR EIGHT CENTS A SHARE AFTER A 63 MILLION CHARGE FOR EARLY DEBT RETIREMENT REVENUE JUMPED 15 TO 1199 MILLION FROM 1043 MILLION THE OPERATOR OF WEIGHTLOSS CENTERS ATTRIBUTED THE INCREASE TO THE ADDITION OF 91 CENTERS SINCE DECEMBER 1991 COMPANYOWNED CENTERS REPORTED A 4 DROP IN AVERAGE PERCENTER REVENUE BECAUSE OF A DECLINE IN THE NUMBER OF NEW ENROLLEES THE COMPANY SAID OPERATING EARNINGS SKIDDED 22 TO 11 MILLION FROM 14 MILLION JENNY CRAIG SAID THE PERFORMANCE OF ITS 83 CENTERS IN SOUTHERN CALIFORNIA DRAGGED DOWN PERCENTER REVENUE AND OPERATING INCOME DESPITE THE CONTINUING WEAK ECONOMY IN CALIFORNIA JENNY CRAIG IS SEEING IMPROVEMENT IN CALIFORNIA AND NATIONWIDE SAID SID CRAIG CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT YEAR END THERE WERE A TOTAL OF 745 CENTERS 545 COMPANYOWNED AND THE OTHERS FRANCHISE OPERATIONS FOR THE FIRST HALF NET INCREASED 31 TO 165 MILLION OR 60 CENTS A SHARE FROM 126 MILLION OR 51 CENTS A SHARE AFTER THE ONETIME CHARGE OPERATING EARNINGS SLIPPED 22 TO 266 MILLION FROM 34 MILLION REVENUE ROSE 43 TO 2344 MILLION FROM 2248 MILLION 9301220153 930122 BANCO SANTANDER POSTS 12 RISE IN 1992 PROFIT SPECIAL TO THE WALL STREET JOURNAL MADRID BANCO SANTANDER ONE OF SPAIN'S BIGGEST PRIVATE COMMERCIAL BANKS REPORTED THAT CONSOLIDATED PROFIT CLIMBED 12 IN 1992 TO 6615 BILLION PESETAS 5825 MILLION FROM 5917 BILLION PESETAS IN 1991 SANTANDER'S RESULTS WERE SEEN AS GENERALLY GOOD IN THE CONTEXT OF RISING BAD LOANS AND TIGHTENING FINANCIAL MARGINS IN 1992 SAID JAIME SMITH ANALYST AT MADRID BROKERAGE FIRM BENITO & MONJARDIN SA NET INTEREST INCOME ROSE 32 TO 20337 BILLION PESETAS FROM 19703 BILLION PESETAS OPERATING PROFIT SURGED 13 TO 12191 BILLION PESETAS FROM 10829 BILLION PESETAS BOOSTED BY A SHARP GROWTH IN FEE INCOME UP 22 TO 6909 BILLION PESETAS FROM 5669 BILLION PESETAS THE BANK SAID SANTANDER SAID OPERATING PROFIT ALSO WAS HELPED BY A COSTCONTROL POLICY APPLIED DURING THE YEAR RESTRICTING THE GROWTH IN OPERATING EXPENSES TO 35 OPERATING EXPENSES ROSE TO 15055 BILLION PESETAS FROM 14543 BILLION PESETAS A SIGNIFICANT TOTAL OF 6468 BILLION PESETAS WAS PUT TOWARD DEPRECIATION AND PROVISIONS SANTANDER SAID THE BANK DIDN'T PROVIDE A YEAREARLIER FIGURE 9301220151 930122 FRANCE'S SAINT GOBAIN POSTS 55 NET DROP IN '92 TO 437 MILLION SPECIAL TO THE WALL STREET JOURNAL PARIS CIE DE SAINT GOBAIN SAID A DIFFICULT SECOND HALF CAUSED ITS NET INCOME TO DECLINE BY 55 IN 1992 THE GLASS AND CONSTRUCTION MATERIALS GROUP SAID ITS 1992 CONSOLIDATED NET INCOME CAME IN AT 237 BILLION FRANCS 437 MILLION OR 339 FRANCS A SHARE DOWN FROM 251 BILLION FRANCS OR 369 FRANCS A SHARE IN 1991 SAINT GOBAIN BLAMED THE GENERAL ECONOMIC SLOWDOWN THAT INTENSIFIED IN THE SECOND HALF OF THE YEAR SPREADING THROUGHOUT THE GROUP'S MAIN MARKETS AND FUELING A PRICE WAR THAT WAS ALREADY SMOLDERING SAINT GOBAIN IS THE FIRST MAJOR FRENCH INDUSTRIAL GROUP TO GIVE OUT ITS 1992 EARNINGS AND ANALYSTS SAY THE DISAPPOINTING FIGURES GIVE A FORETASTE OF WEAK PROFITS THAT WILL BE ANNOUNCED IN THE COMING WEEKS WITHOUT COUNTING EXCEPTIONAL GAINS AND LOSSES 1992 PROFIT WAS 213 BILLION FRANCS OR 304 FRANCS A SHARE DOWN 16 FROM 2549 BILLION FRANCS OR 375 FRANCS A SHARE IN 1991 REVENUE FELL 16 TO 739 BILLION FRANCS FROM 75065 BILLION FRANCS IN 1991 EVEN THOUGH OBERLAND GLAS AG A GERMAN GLASSMAKING UNIT WAS FULLY INTEGRATED FOR THE FIRST TIME IN 1992 THE COMPANY SAID THAT THE US IS THE ONLY GEOGRAPHICAL AREA WHERE ACTIVITY HAS BEEN PICKING UP IN RECENT MONTHS THE COMPANY REPORTED HEAVY LOSSES IN ITS PAPERWOOD AND REINFORCING FIBERS BUSINESSES WHICH ARE THE MOST CYCLICAL BUT IT SAID PIPING INSULATION AND CONSTRUCTION UNITS THAT HAVE A STRONG BASE IN NORTH AMERICA CONTINUED TO GROW CHAIRMAN JEANLOUIS BEFFA HAS SAID THAT 1993 PROMISES TO BE ANOTHER DIFFICULT YEAR FOR SAINT GOBAIN WITH THE GERMAN ECONOMY EXPECTED TO SLOW EVEN FURTHER SOME ANALYSTS SAY IT'S NOW DOUBTFUL THAT THE RECOVERY OF DEMAND IN THE US AS 1993 PROGRESSES WILL OFFSET THE EFFECTS OF THE SLUMP IN EUROPEAN MARKETS 9301220150 930122 INTERNATIONAL BASF AND ICI AGREE TO SWAP CERTAIN LINES A WALL STREET JOURNAL NEWS ROUNDUP GERMANY'S BASF AG AND IMPERIAL CHEMICALS INDUSTRIES PLC OF THE UK AGREED TO SWAP THEIR EUROPEAN ACRYLICS AND POLYPROPYLENE BUSINESSES REFLECTING AN INDUSTRYWIDE DRIVE TO ATTAIN MARKET LEADERSHIP IN CORE BUSINESSES UNDER THE AGREEMENT ICI WILL ACQUIRE BASF'S ACRYLIC SUBSIDIARIES RESART GMBH OF MAINZ GERMANY AND CRITESA SA OF BARCELONA BUSINESSES THAT WILL ADD 60 MILLION 926 MILLION IN ANNUAL SALES TO ICI ACRYLICS'S CURRENT 300 MILLION A YEAR IN EXCHANGE BASF WILL ACQUIRE ICI'S PROPATHENE POLYMER PLANTS IN ROSENBURG THE NETHERLANDS AND WILTON ENGLAND ALONG WITH ITS WILTONBASED PROCOM POLYPROPYLENE COMPOUNDING BUSINESS THESE BUSINESSES HAVE ANNUAL REVENUE OF 135 MILLION IN ADDITION BASF WILL MAKE A PAYMENT TO ICI TO ACCOUNT FOR THE DIFFERENCE IN VALUE OF THE OPERATIONS SWAPPED A PRECISE FIGURE HASN'T YET BEEN DETERMINED THE COMPANIES SAID THEY HOPE TO COMPLETE THE DEAL BY MIDYEAR SUBJECT TO REGULATORY APPROVALS FOR ICI ACQUIRING BASF'S ACRYLICS DIVISION WILL GIVE IT CONTROL OVER ABOUT 25 OF THE MARKET ANALYSTS NOTED THE MOVE FITS INTO A CAMPAIGN BY ICI TO STRENGTHEN ITS GLOBAL POSITION IN THE BUSINESS BASF MEANWHILE A RELATIVE LATECOMER TO THE ACRYLICS FIELD NOTED IT HADN'T BEEN ABLE TO MAKE AS MUCH OF ITS ACRYLICS BUSINESS AS IT HAD HOPED BECAUSE OF THE PRESENCE OF MANY STRONGER COMPETITORS 9301220149 930122 ADVANCED INTERVENTIONAL SYSTEMS IRVINE CALIF ADVANCED INTERVENTIONAL SYSTEMS INC SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL FOR AN IMPROVED VERSION OF ITS LASER SYSTEM FOR TREATING HEART DISEASE THE COMPANY'S FIRSTGENERATION SYSTEM WAS APPROVED FOR COMMERCIAL SALE A YEAR AGO THE NEW SYSTEM IS SMALLER AND WEIGHS ABOUT 50 LESS THAN THE EARLIER MODEL THE COMPANY SAID THE COMPANY SAID IT EXPECTS THE NEW UNITS TO BE AVAILABLE BY THE YEAR END IN THE MEANTIME THE COMPANY WILL CONTINUE TO SELL ITS FIRSTGENERATION SYSTEM AND WILL ALLOW CUSTOMERS TO TRADE UP TO THE NEW UNIT 9301220148 930122 NASD WON'T ELIMINATE PUNITIVE DAMAGE AWARDS SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WON'T STRIP ITS SECURITIES ARBITRATORS OF THE POWER TO AWARD PUNITIVE DAMAGES TO INVESTORS RICHARD G KETCHUM AN NASD EXECUTIVE VICE PRESIDENT SAID CALLS BY SOME SECURITIES OFFICIALS FOR ELIMINATION OF PUNITIVE AWARDS WON'T BE ANSWERED BY THE INDUSTRYSPONSORED REGULATORY GROUP'S BOARD OF GOVERNORS PEOPLE FAMILIAR WITH DISCUSSIONS WITHIN THE NASD SAID A COMMITTEE OF INDUSTRY AND NONINDUSTRY REPRESENTATIVES LAST WEEKEND RECOMMENDED TO THE THE BOARD THAT IT IGNORE LOBBYING FOR MAJOR CHANGES IN THE PUNITIVE DAMAGES RULES INCLUDING CALLS FOR A PROHIBITION ON THE USE OF PUNITIVE DAMAGE AWARDS OR A CAP ON THEIR ALLOWABLE SIZE THE NASD COMMITTEE WHICH HAS BEEN STUDYING THE PUNITIVE DAMAGES ISSUE FOR NEARLY A YEAR IS SAID TO HAVE SUGGESTED TO THE BOARD THAT IT SIMPLY HONE THE PROCEDURES THAT ARBITRATORS MUST FOLLOW IN DETERMINING WHEN PUNITIVE DAMAGES ARE APPROPRIATE MR KETCHUM SAID ALL OTHER RESTRUCTURING OPTIONS SHORT OF A PROHIBITION REMAIN UNDER DISCUSSION BUT HE DID INDICATE THAT THE GOVERNORS APPEAR LIKELY TO SHUN CALLS FOR A CAP ON AWARDS 9301220147 930122 WHO'S NEWS MUTUAL LIFE INSURANCE CO OF NEW YORK MUTUAL LIFE INSURANCE CO OF NEW YORK NEW YORK TOM A SCHLOSSBERG 42 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AT THIS MUTUAL LIFE INSURANCE COMPANY WITH MORE THAN 191 BILLION IN ASSETS MR SCHLOSSBERG WHO HAD BEEN SENIOR VICE PRESIDENT CONTINUES TO HEAD PENSION OPERATIONS IN PURCHASE NY 9301220146 930122 CHINESE SOOTHSAYERS OFFER INVESTORS TIPS FOR YEAR OF ROOSTER BELIEVERS HAVE REASON TO CROW IF FENG SHUI STOCK INDEX LIVES UP TO ACCURACY CLAIMS BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FOR THE MORESPIRITUAL INVESTORS THE 1993 FENG SHUI STOCKINDEX PREDICTIONS ARE OUT HERE'S SOME OF THE BAD NEWS EXPECTED FOR THE CHINESE YEAR OF THE ROOSTER WHICH STARTS ON SATURDAY AN IMPORTANT LEADER WILL DIE IN APRIL OR MAY POLITICIANS IN TAIWAN WILL BE SICK AND HONG KONG WILL SEE MORE VIOLENCE THE GOOD NEWS IS THAT HONG KONG CRIMINALS WILL USE FEWER MACHINE GUNS AND THE COLONY'S STOCK MARKET WILL SOAR THE PREDICTIONS ARE THE WORK OF FOUR FENG SHUI DIVINERS ANALYZED AND TRANSLATED FOR INVESTORS BY CREDIT LYONNAIS SECURITIES ASIA LTD FENG SHUI THE CHINESE WORDS FOR WIND AND WATER USES ASTROLOGICAL AND GEOGRAPHICAL CALCULATIONS TO MEASURE ENVIRONMENTAL IMBALANCES IN HONG KONG AND ELSEWHERE IN ASIA THE PRACTICE IS OFTEN USED IN DETERMINING THE SITES OF OFFICE BUILDINGS AND OTHER PROJECTS LAST YEAR THE FENG SHUI TEAM AT CREDIT LYONNAIS SO ACCURATELY PREDICTED THE MAJOR TURNING POINTS OF HONG KONG'S SHARE MARKET THAT THE FIRM IS NOW TRYING HARD TO CALM EXCITEMENT ABOUT THE CURRENT YEAR'S FORECASTS THE 1992 RESULTS WERE THE SUBJECT OF A RECENT WALL STREET JOURNAL ARTICLE THE NEW FENG SHUI INDEX FOR HONG KONG STOCKS WAS RELEASED AT A NEWS CONFERENCE EARLIER THIS WEEK RATHER THAN QUIETLY TO CLIENTS BECAUSE WE WANT EVERYONE TO BE REALLY CAREFUL IN HOW THEY PRESENT THIS TO THEIR READERS AND VIEWERS SAID GARY COULL THE FIRM'S MANAGING DIRECTOR THAT POINT OF CAUTION SEEMED LOST ON 30ODD JOURNALISTS WHO CROWDED IN A DOWNTOWN HOTEL MEETING ROOM FOR THE UNVEILING THEY GASPED WHEN MR COULL PULLED BACK A RED CURTAIN TO SHOW THE FENG SHUI'S INDEX'S DRAMATIC RISE THROUGH 1993 HE ASKED TWO EXCITED PHOTOGRAPHERS NOT TO TAKE SO MANY PICTURES BECAUSE THE CHART REPRESENTS ONLY THE DIVINERS' CONSENSUS ABOUT EACH MONTH'S LUCK THERE IS NO WAY TO TELL HOW MUCH HONG KONG'S HANG SENG INDEX OF 33 BLUECHIP HONG KONG STOCKS IS SUPPOSED TO ACTUALLY RISE IT DOES HOWEVER POINT TO A SOARING MARKET BETWEEN MAY AND OCTOBER AND ANOTHER RALLY LATE IN THE YEAR THE DIVINERS WERE SPLIT ABOUT HOW MUCH LUCK THERE WILL BE IN THE FIRST QUARTER OF 1993 MAKING FEBRUARY AND MARCH THE WEAKEST MONTHS OF THE CHART BY JUNE THOUGH SPECULATORS WILL BE TAKING TIME OFF WORK TO PLAY THE MARKET THE FENG SHUI TEAM PREDICTS IT ALSO WILL BE A GOOD MONTH TO GET MARRIED THOSE SPECULATORS SHOULDN'T BORROW TO INVEST IN OCTOBER WHEN SHARE AND PROPERTY PRICES WILL DROP GREATLY BUT THE INDEX REBOUNDS BETWEEN DECEMBER AND FEBRUARY THE END OF THE CHINESE YEAR THE TEAM DIDN'T LIMIT ITSELF TO PREDICTING THE STOCK MARKET THE YEAR OF THE ROOSTER OR COCKEREL AS SOME PREFER TO CALL IT WILL BE A YEAR OF VANITY AND SEX WITH A LOT OF PROBLEMS IN RELATIONSHIPS THEY SAY IT WILL ALSO MEAN THE PROBABLE FAILURE OF TRADE TALKS ON THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND THEY PREDICT THE DAYS OF MAKING MONEY WITHOUT DOING ANYTHING ARE OVER 9301220145 930122 WHO'S NEWS PROVIDENCE ENERGY CORP PROVIDENCE ENERGY CORP PROVIDENCE RI THREE NEW DIRECTORS WERE NAMED TO THE BOARD OF THIS UTILITY HOLDING COMPANY NAMED WERE JOHN H HOWLAND 46 YEARS OLD AND PRESIDENT AND CHIEF OPERATING OFFICER OF ORIGINAL BRADFORD SOAP WORKS INC IN WEST WARWICK RI DOUGLAS H JOHNSON 49 VICE PRESIDENT AND MANAGING PARTNER M VAN LEESTEN ASSOCIATES INC OF PROVIDENCE AND ROMOLO A MARSELLA 51 PRESIDENT OF MARSELLA DEVELOPMENT CORP ALSO IN PROVIDENCE THE THREE FILL VACANCIES ONE CREATED BY THE RETIREMENT OF ALLEN H HOWLAND FATHER OF JOHN RICHARD R WEEKS AND HENRY S WOODBRIDGE JR DIDN'T STAND FOR REELECTION 9301220144 930122 UAL UNITED FILE OFFERING PLAN CHICAGO UAL CORP AND ITS FLAGSHIP UNITED AIRLINES UNIT SAID THEY JOINTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER UP TO 15 BILLION OF SECURITIES FROM TIME TO TIME THE AIRLINE HOLDING COMPANY SAID THE SOCALLED SHELF REGISTRATION WAS FILED UNDER TERMS OF RECENTLY ADOPTED SEC RULES AIMED AT PROVIDING COMPANIES WITH ADDITIONAL FLEXIBILITY IN THEIR PUBLIC OFFERINGS THE CHANGE WOULD ALLOW COMPANIES TO REGISTER DEBT EQUITY AND OTHER SECURITIES ON ONE REGISTRATION STATEMENT WITHOUT SPECIFICALLY ALLOCATING OFFERING AMOUNTS AMONG THE TYPES OR CLASSES OF SECURITIES BEING REGISTERED THE UAL/UNITED REGISTRATION STATEMENT COVERS ANY COMBINATION OF UNITED DEBT SECURITIES WARRANTS AND EQUIPMENT TRUST AND PASSTHROUGH CERTIFICATES AS WELL AS UAL CONVERTIBLE DEBT PREFERRED AND CONVERTIBLE PREFERRED AND COMMON STOCK PROCEEDS FROM THE SALE OF THE SECURITIES WOULD BE USED FOR GENERAL CORPORATE PURPOSES UAL SAID 9301220143 930122 WARNERLAMBERT ITALIAN VENTURE MORRIS PLAINS NJ WARNERLAMBERT CO SAID IT BOUGHT THE REMAINING SHARES OF ITS ITALIAN CONFECTIONERY JOINT VENTURE CREATING THE SECONDLARGEST CANDY COMPANY IN ITALY THE CONSUMER AND HEALTH CARE GOODS PRODUCER HAD ENTERED INTO THE JOINT VENTURE WITH CANDY COMPANY SOCIETA MERIDIONALE FINANZIARA SPA IN 1991 WARNERLAMBERT SAID THE PURCHASE WILL EXPAND ITS ABILITY TO INTRODUCE POPULAR US PRODUCTS TO THE EUROPEAN MARKET TERMS OF THE PURCHASE WEREN'T DISCLOSED WARNERLAMBERT PREVIOUSLY OWNED 49 OF THE JOINT VENTURE 9301220142 930122 VERTEX COMMUNICATIONS OFFERING KILGORE TEXAS VERTEX COMMUNICATIONS CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF ONE MILLION COMMON SHARES THE MAKER OF EARTH STATION ANTENNAS SAID IT WILL USE THE PROCEEDS FOR CAPITAL PROJECTS IN TEXAS AND DUISBURG GERMANY AND FOR OTHER CORPORATE PURPOSES VERTEX HAD ABOUT 34 MILLION SHARES OUTSTANDING AS OF JAN 1 WILLIAM K WOODRUFF & CO DALLAS IS THE MANAGING UNDERWRITER FOR THE OFFERING 9301220141 930122 PENTECH SEES SALES NET FOR FISCAL YEAR 1ST QUARTER RISING BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL EDISON N J PENTECH INTERNATIONAL INC EXPECTS SALES AND EARNINGS FOR ITS FISCAL FIRST QUARTER AND YEAR TO EXCEED THOSE OF A YEAR EARLIER OFFICIALS SAID DAVID MELNICK PRESIDENT OF THE MAKER OF PENS PENCILS AND MARKERS SOLD LARGELY IN MASS MARKET OUTLETS SAID THE FIRST QUARTER IS LOOKING PRETTY GOOD BUT DECLINED TO BE MORE SPECIFIC ABOUT EXPECTATIONS FOR EARNINGS OTHER THAN TO SAY THEY ARE EXPECTED TO BE HIGHER THAN THE 366000 OR THREE CENTS A SHARE OF A YEAR EARLIER REVENUE IN THE YEAREARLIER QUARTER WAS 47 MILLION PENTECH'S FIRST QUARTER ENDED DEC 31 OFFICIALS NOTED THAT MOST OF ITS BUSINESS IS REFLECTED IN THE THIRD AND FOURTH QUARTERS MR MELNICK WHO WITH HIS FATHER NORMAN FOUNDED THE COMPANY IN 1984 SAID BUYING WAS A LITTLE STRONGER DURING THE CHRISTMAS SEASON IN THE LATEST QUARTER THAN A YEAR EARLIER AND THERE WAS A LITTLE MORE PROMOTIONAL ACTIVITY THE FATHER AND SON OWN ABOUT 30 OF THE COMPANY THE ELDER MR MELNICK GOT INTO THE WRITING INSTRUMENT BUSINESS NEARLY 40 YEARS AGO BY INVENTING THE FIRST COMMERCIALLY AVAILABLE DRY INK FOR BALLPOINT PENS REPLACING OILBASED INK FOR THE CURRENT YEAR THE OFFICIALS SAID ANALYSTS ARE ESTIMATING NET INCOME OF ABOUT 42 CENTS TO 45 CENTS A SHARE OR 5 MILLION TO 55 MILLION ON SALES OF ABOUT 48 MILLION WE FEEL THE ESTMATES ARE DOABLE THE YOUNGER MR MELNICK SAID ADDING IT'S A LITTLE EARLY IN THE GAME RIGHT NOW PENTECH SHIPS ABOUT TWOTHIRDS OF ITS BUSINESS IN THE THIRD AND FOURTH QUARTERS GEARED TO THE BACKTOSCHOOL BUSINESS IN THE YEAR ENDED SEPT 30 PENTECH HAD NET OF 28 MILLION OR 23 CENTS A SHARE ON SALES OF 391 MILLION EARLIER REPORTED NUMBERS WERE MODIFIED IN DECEMBER BECAUSE OF SEVERAL DEVELOPMENTS THEY INCLUDED ESTABLISHING A 300000 RESERVE FOR AN ADVERSE DECISION IN A PATENT INFRINGEMENT ACTION A 500000 CHARGE FOR REWORKING AN ORDER A CHARGE OF ABOUT 500000 BECAUSE OF A BAD DEBT FROM PHARMOR INC A CLOSELY HELD DRUGSTORE CHAIN WHICH FILED FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION AND AN 800000 RESERVE TO COVER RETURN OF GOODS FROM A BIG CUSTOMER THE OFFICIALS SAID THESE WERE ONETIME EVENTS NORMAN MELNICK CHAIRMAN SAID THE COMPANY'S STRATEGY IS TO COME UP WITH 50 NEW PRODUCTS A YEAR HE POINTED TO A PENCIL DECORATED WITH SIX COLORS AND RUBBERIZED PENS AND HIGHLIGHTERS HE EXPLAINED THAT THE BIG SUPERMARKET DRUGSTORE AND DISCOUNT CHAINS THAT PENTECH SELLS TO RELY ON NEW PRODUCTS TO BRING CUSTOMERS TO THE STORES IN ADDITION CHAINS WANT TO AVOID SELLING IDENTICAL ITEMS SO NEW PRODUCT INTRODUCTION IS IMPORTANT 9301220140 930122 US REP GONZALEZ SEEKS SECRET FILES ON BNLIRAQ CASE BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP HENRY GONZALEZ SAID HE WILL REQUEST THOUSANDS OF SECRET DOCUMENTS FROM THE CLINTON ADMINISTRATION THAT SHOULD SHED FURTHER LIGHT ON THE BUSH ADMINISTRATION'S HANDLING OF THE BANCA NAZIONALE DEL LAVORO SCANDAL I WILL NOT GIVE UP SAID THE FEISTY HOUSE BANKING COMMITTEE CHAIRMAN IN A SPEECH ON THE HOUSE FLOOR ONE OF MANY HE HAS GIVEN ON THE ITALIAN GOVERNMENTOWNED BANK AND ITS RELATIONS WITH IRAQ'S MILITARY PROCUREMENT NETWORK IN THE US THE TEXAS DEMOCRAT SAID HE WILL ISSUE DOCUMENT REQUESTS TO THE WHITE HOUSE THREE INTELLIGENCE AGENCIES THE CUSTOMS SERVICE AND THE DEPARTMENTS OF STATE JUSTICE AND AGRICULTURE MR GONZALEZ CHARGED THAT THE NUCLEARRELATED FACTORY AND SOPHISTICATED AIRDEFENSE SYSTEMS BEING BOMBED BY US AIRCRAFT IN IRAQ WERE IN ONE WAY OR ANOTHER CREATED WITH TECHNOLOGY THAT THIS SAME BUSH ADMINISTRATION ALLOWED AND EVEN HELPED IRAQ TO ACQUIRE HE SAID HE IS PARTICULARLY CONCERNED ABOUT THE ROLE PLAYED BY US INTELLIGENCE AGENCIES BECAUSE BRITISH DOCUMENTS SHOW THAT BRITISH INTELLIGENCE KNEW IN 1988 THAT AN IRAQIOWNED FRONT COMPANY MATRIXCHURCHILL LTD WAS PROCURING WEAPONSRELATED ITEMS THROUGH ITS CLEVELAND SUBSIDIARY THAT WERE BEING FINANCED BY BANCA NAZIONALE'S ATLANTA OFFICE YET IN LATE MAY 1990 THE US COMMERCE DEPARTMENT ISSUED LICENSES FOR THE CLEVELAND AFFILIATE TO SHIP SENSITIVE ITEMS TO IRAQ MR GONZALEZ ASSERTED THE CLINTON ADMINISTRATION ALSO WILL HAVE TO DEAL WITH THE TRIAL OF CHRISTOPHER DROGOUL THE FORMER MANAGER OF BANCA NAZIONALEATLANTA HE HAS BEEN CHARGED AS THE MAIN PERPETRATOR IN HIS BRANCH'S ISSUANCE OF 21 BILLION OF SUPPOSEDLY UNAUTHORIZED LOANS TO PAY FOR IRAQ'S PURCHASES AND HIS TRIAL IS SCHEDULED NEXT SUMMER MEANWHILE BANCA NAZIONALE IS SUING THE US TO COLLECT 370 MILLION IN DEFAULTED IRAQI COMMODITY LOANS THAT WERE INSURED BY THE US DEPARTMENT OF AGRICULTURE REP GONZALEZ SAID THAT LAST MONTH PROSECUTORS IN VENICE INDICTED FORMER OFFICIALS OF BANCA NAZIONALE'S ROME HEADQUARTERS FOR PROVIDING OVER 100 MILLION IN SECRET LOANS FOR ARMS SHIPMENTS TO IRAN HE SAID IT SEEMS HIGHLY UNLIKELY THAT THE FORMER BANCA NAZIONALE OFFICIALS WOULD KNOW ABOUT THE ILLEGAL LOANS TO IRAN AND REMAIN IGNORANT OF THE BANK'S MUCH LARGER EXPOSURE TO IRAQ THROUGH THE ATLANTA BRANCH 9301220137 930122 EUROPE'S FORESTRY INDUSTRY STILL STRUGGLES BUT LOWER PRODUCTION COSTS COULD PAY OFF IN 1993 BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM CURRENCY UPHEAVAL HAS TURNED COMPETITION UPSIDE DOWN IN EUROPE'S PULP AND PAPER INDUSTRY THE PAST FEW MONTHS DURING MUCH OF LAST YEAR SCANDINAVIAN FORESTRY CONCERNS FOUGHT AN UPHILL BATTLE AGAINST ECONOMIC RECESSION AND OVERVALUED CURRENCIES THAT DROVE OPERATING COSTS THROUGH THE ROOF BLUECHIP COMPANIES SUCH AS SWEDEN'S STORA KOPPARBERGS BERGSLAGS AB AND SVENSKA CELLULOSA AB AND FINLAND'S KYMMENE OY AND REPOLA OY TOPPLED INTO THE RED AND SAW THE PRICES OF THEIR STOCKS NOSEDIVE THEN THE CURRENCY SPECULATORS MOVED IN WHEN A MASSIVE WAVE OF SPECULATION AGAINST THE MARKKA NEARLY WIPED OUT FINLAND'S CURRENCY RESERVES FOR THE SECOND TIME IN A YEAR THE CENTRAL BANK DECIDED IN SEPTEMBER TO LET THE MARKKA FLOAT FREELY THE EFFECTIVE DEVALUATION SENT INVESTORS ON A BUYING SPREE IN FINNISH STOCKS WHILE THE MARKKA HAS SUNK MORE THAN 40 AGAINST THE US DOLLAR THE HELSINKI STOCK EXCHANGE'S GENERAL INDEX HAS SOARED NEARLY 60 AND THE SUBINDEX OF FORESTRY STOCKS IS UP MORE THAN 40 SINCE EARLY SEPTEMBER DISGRUNTLED SWEDISH FORESTRY BARONS WATCHED ENVIOUSLY FROM ACROSS THE BORDER BUT BY MIDNOVEMBER INTERNATIONAL SPECULATORS FINALLY TOPPLED THE SWEDISH KRONA AS WELL SINCE IT WAS ALLOWED TO FLOAT THE KRONA HAS WEAKENED MORE THAN 20 AGAINST THE DOLLAR DURING THE SAME PERIOD THE STOCKHOLM STOCK EXCHANGE'S AFFAERSVAERLDEN GENERAL INDEX HAS CLIMBED NEARLY 30 AND THE SUBINDEX OF FORESTRY STOCKS HAS SPURTED 49 DESPITE THE CURRENCY WINDFALL THE FLURRY OF 1992 FINANCIAL REPORTS DUE FROM FORESTRY COMPANIES IN A FEW WEEKS WILL BE GRIM READING FINLAND'S FOUR BIGGEST PULP AND PAPER COMPANIES ARE EXPECTED TO SHOW MASSIVE PRETAX LOSSES SWEDISH RIVALS REMAIN MUCH STRONGER FINANCIALLY BUT WITH THE POSSIBLE EXCEPTION OF SVENSKA CELLULOSA OR SCA ARE ALSO VIRTUALLY CERTAIN TO SHOW LOSSES FOR 1992 ANALYSTS SAY BUT PLUMMETING PRODUCTION COSTS IN THE NORDIC WOODS PROMISE TO MAKE A BIG DIFFERENCE THIS YEAR A FEW MONTHS AGO EXECUTIVES AT SWEDISH PAPERMAKER MO & DOMSJOE AB OR MODO ESTIMATED THAT IT COST SWEDISH COMPANIES 726 TO PRODUCE A TON OF PULP THE RAW MATERIAL FROM WHICH PAPER IS MADE THE CORRESPONDING COST FOR FINNISH RIVALS WAS 611 AND FOR US COMPANIES 600 BUT CANADIAN PAPERMAKERS' COST WAS A PALTRY 542 A TON AT CURRENT EXCHANGE RATES HOWEVER PRODUCTION COSTS FOR BOTH SWEDISH AND FINNISH COMPANIES ARE NOW LOWER THAN THE CANADIANS SAYS ROLAND MARTINLOEF PRESIDENT OF MODO'S PAPER DIVISION WE'LL BE ABLE TO COMPETE WITH THE CANADIANS IN ANY MARKET AND EVEN BE COMPETITIVE WHEN SENDING PULP TO THE US STILL ANALYSTS CAUTION THAT 1993 LIKELY WILL FALL SHORT OF A FULLFLEDGED RECOVERY FOR THE FORESTRY INDUSTRY EVEN THOUGH THE CURRENCY BOOST PROBABLY WILL PUSH MOST SCANDINAVIAN PAPERMAKERS BACK INTO THE BLACK PAPER DEMAND REMAINS ANEMIC AND PRICES ARE UNDER PRESSURE AND WHILE PULP AND PAPER COMPANIES WILL BE AMONG THE EARLIEST CYCLICAL STOCKS TO BENEFIT FROM AN ECONOMIC UPTURN THESE ANALYSTS ADVISE INVESTORS AGAINST LOADING UP ON FORESTRY STOCKS FOR A FEW MORE MONTHS OR AT LEAST UNTIL EVIDENCE OF A US ECONOMIC UPSWING IS UNMISTAKABLE MADS ASPREM A LONDONBASED FORESTRY ANALYST FOR MORGAN STANLEY & CO WORRIES THAT THE RECENT SURGE HAS LEFT SHARES OF MOST SCANDINAVIAN FORESTRY COMPANIES FULLY VALUED WHILE CONTINUED DECLINES IN PAPER PRICES COULD MAKE 1993 ANOTHER DISAPPOINTMENT FOR THE INDUSTRY THE BIGGEST REASON ANALYSTS REMAIN WARY IS A VIRTUALLY UNPRECEDENTED GLUT OF PRODUCTION CAPACITY AROUND EUROPE FIERCE PRICE WARS HAVE ERUPTED AS COMPANIES TRY TO DEFEND MARKET SHARES AND THUS SHORE UP UTILIZATION RATES AT THEIR EUROPEAN FACTORIES THE PRICE OF PULP A KEY INDUSTRY BENCH MARK HAS SKIDDED ALMOST AS FAST AS SCANDINAVIAN COMPANIES' PRODUCTION COSTS MODO'S MR MARTINLOEF SAYS THAT WITH PRICES CURRENTLY STUCK BELOW 500 A TON PULP CLEARLY REMAINS AN UNPROFITABLE BUSINESS AND HE EXPECTS PULP PRICES TO REMAIN UNDER SEVERE PRESSURE IN 1993 THAT SPELLS TROUBLE FOR EVERYBODY WHILE THE SCANDINAVIANS STILL ARE HAVING TROUBLE MAKING REAL MONEY STRONG CURRENCIES AND BALLOONING COSTS ARE SQUEEZING SMALL INDEPENDENT PRODUCERS IN GERMANY FRANCE AND OTHER CONTINENTAL COUNTRIES EVEN HARDER SAYS MORGAN STANLEY'S MR ASPREM REMOVING CAPACITY THROUGH MERGERS OR JOINT VENTURES IS THE ONLY WAY THIS BUSINESS CAN IMPROVE SWEDISH COMPANIES ARE EXPECTED TO PLAY AN AGGRESSIVE ROLE IN THE INDUSTRY SHAKEUP BUT AT THE MOMENT THEY CAN'T GOBBLE UP EUROPEAN COMPANIES THE WAY THEY DID IN THE 1980S BUT THIS YEAR THEY'LL BEGIN REPLENISHING EMPTY WAR CHESTS ANALYSTS PREDICT THAT STORA EUROPE'S BIGGEST PULP AND PAPER CONCERN WILL SWING TO A PRETAX PROFIT OF 15 BILLION SWEDISH KRONOR 205 MILLION THIS YEAR FROM A 1992 PRETAX LOSS OF ONE BILLION KRONOR STORA'S TURNAROUND WILL BE SPEEDED BY A TOUGH COSTCUTTING PROGRAM STORA'S CLASS B SHARES THE CLASS OF EQUITY MOST TRADED INTERNATIONALLY ARE UP 51 SINCE THE KRONA BEGAN FLOATING TWO MONTHS AGO IT'S THOUGHT THAT SCA SWEDEN'S NO 2 FORESTRY GROUP MAY HAVE EKED OUT A SLIM PRETAX PROFIT IN 1992 A RESULT OF BURGEONING PROFITS AT ITS HYGIENE UNIT WHICH MAKES DISPOSABLE DIAPERS AND OTHER CONSUMER PRODUCTS BUT ANALYSTS PREDICT SCA'S 1993 PRETAX PROFIT COULD REACH ROUGHLY 15 BILLION KRONOR SCA CLASS B STOCK IS UP 5 SO FAR THIS YEAR AND HAS RALLIED A SIZZLING 46 SINCE THE KRONA BEGAN FLOATING MODO ISN'T EXPECTED TO DO MUCH MORE THAN BREAK EVEN THIS YEAR BUT THAT'S STILL A MAJOR REBOUND FROM AN ESTIMATED 15 BILLION KRONOR PRETAX LOSS IN 1992 MODO CLASS B STOCK IS UP 20 FOR THE YEAR TO DATE AND IS MORE THAN DOUBLE ITS PRICE WHEN THE KRONA BEGAN FLOATING FINNISH FORESTRY COMPANIES AGGRAVATED THE CAPACITY GLUT BY PLOWING 15 OF THEIR ANNUAL SALES INTO CONSTRUCTION OF NEW MILLS IN THE PAST FEW YEARS THE INVESTMENT SPREE LEFT MOST FINNISH PAPER CONCERNS FINANCIALLY OVEREXTENDED JUST AS A PERIOD OF RECORD LOSSES WAS BEGINNING AND THEY AREN'T OUT OF THE WOODS YET ANALYSTS ESTIMATE THAT KYMMENE FINLAND'S NO 1 PAPER CONCERN PLUMMETED TO A PRETAX LOSS OF 11 BILLION FINNISH MARKKAA 202 MILLION LAST YEAR AND WILL REPORT A MODEST PRETAX LOSS THIS YEAR AS WELL KYMMENE'S STOCK HAS LAGGED BEHIND THE REST OF THE FORESTRY SECTOR CLIMBING 13 SINCE THE FINNISH CURRENCY WAS ALLOWED TO FLOAT ON SEPT 7 KYMMENE NO LONGER IS THE FIRSTCLASS COMPANY IT WAS 18 MONTHS AGO SAYS LAURI ROSENDAHL AN ANALYST WITH HELSINKI STOCKBROKER ABB AROS SECURITIES DEBT HAS RISEN SO FAST THAT THEY HAVE TO HAVE MUCH HIGHER PAPER PRICES TO BE PROFITABLE AND SHORE UP THEIR BALANCE SHEET AND UNLESS THAT HAPPENS FAIRLY SOON YOU MIGHT SEE THEM SELL SOME MILLS ON THE CONTINENT TO REDUCE DEBT AND GET A BIT LEANER 9301220136 930122 TECHNOLOGY IBM CREDIT UNIT POSTS 95 GAIN IN ANNUAL PROFIT BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP REPORTED A SOLID 95 GAIN IN ANNUAL EARNINGS FOR ITS BIG FINANCE SUBSIDIARY BUT ANALYSTS SAID THE UNIT'S RESULTS ALSO OFFERED MORE TROUBLING EVIDENCE OF IBM'S WEAKNESS OVERSEAS AND IN THE PERSONALCOMPUTER MARKET IBM CREDIT CORP SAID EARNINGS FOR 1992 WERE 2193 MILLION UP FROM 2002 MILLION IN 1991 IT SAID ITS RETURN ON AVERAGE EQUITY WAS A HEALTHY 19 DOWN SLIGHTLY FROM 203 IN 1991 IBM CREDIT MAKES UP A RELATIVELY SMALL PORTION OF ITS PARENT COMPANY'S OVERALL BUSINESS BUT THE UNIT'S HEALTH IS IMPORTANT TO IBM BECAUSE IT'S ONE OF THE LOSSRIDDEN COMPUTER GIANT'S BIGGEST CUSTOMERS IT BUYS COMPUTING MACHINERY FOR LEASE TO OTHERS AND FINANCES THE PURCHASE OF A HUGE PORTION OF IBM PRODUCTS THE UNIT'S 1992 RESULTS SHOW ITS PUSH FOR NEW BUSINESS WAS HURT BY IBM'S MOUNTING WOES IN THE COMPUTER MARKET IBM THIS WEEK REPORTED A RECORD 1992 NET LOSS OF 497 BILLION AMID FALLING REVENUE REFLECTING ITS PARENT'S HARD TIMES IBM CREDIT SAID ITS 1992 VOLUME OF NEW FINANCING DROPPED SHARPLY TO 86 BILLION DOWN 65 FROM 92 BILLION IN 1991 THE DROP REFLECTED A SHARP DOWNTURN IN IBM CREDIT'S FINANCING BUSINESS TO DISTRIBUTORS AND RETAILERS WHO MOSTLY HANDLE MIDRANGE AND PERSONAL COMPUTERS IBM CREDIT SAID THE VOLUME OF THAT BUSINESS FELL 14 FROM 1991 TO 42 BILLION BOB DJURDJEVIC AN ANALYST WITH ANNEX RESEARCH SAID THE DECLINE OFFERED ANOTHER SIGN OF IBM'S STRUGGLE IN THE PC AND MIDRANGE MARKETS BUT KYLE GROSZ IBM CREDIT'S VICE PRESIDENT OF FINANCE SAID THE DECLINE CAME IN PART FROM THE RISE OF NEW PC DISTRIBUTION CHANNELS THAT DON'T REQUIRE FINANCING SUCH AS DIRECT SALES VIA TELEPHONE IBM CREDIT SAID ITS 1992 VOLUME OF FINANCING DIRECTLY TO COMPUTER USERS ROSE 2 TO 44 BILLION MR DJURDJEVIC SAID THAT BUSINESS CHIEFLY INVOLVES THE MAINFRAME MARKET WHERE IBM SAW SALES FALL BY MORE THAN 10 LAST YEAR THE 2 RISE AT IBM CREDIT WHICH OPERATES IN THE US IS AN INDICATOR THAT IBM'S MAINFRAME BUSINESS OVERSEAS FELL BY SIGNIFICANTLY MORE THAN 10 MR DJURDJEVIC SAID IN AN INTERVIEW THE CREDIT UNIT'S MR GROSZ SAID IT'S CONCEIVABLE THAT IBM MIGHT SOMEDAY SELL A STAKE IN IBM CREDIT TO OUTSIDE INVESTORS IBM HAS BEEN ACTIVELY CONSIDERING WAYS TO OFFER INVESTMENTS PEGGED TO SPECIFIC PIECES OF ITS BUSINESS IBM CREDIT WOULD BE A PARTICULARLY EASY UNIT TO SPIN OFF SINCE IT HAS BEEN BREAKING OUT SEPARATE FINANCIAL RESULTS SINCE ITS CREATION IN 1981 MR GROSZ WOULDN'T DISCUSS WHETHER IBM CURRENTLY HAS ANY SPECIFIC PLANS TO SPIN OFF IBM CREDIT MR GROSZ ALSO SAID IBM CREDIT HASN'T FELT ANY ADVERSE EFFECT FROM LAST WEEK'S MOVE BY STANDARD & POOR'S CORP TO DOWNGRADE IBM'S PRIZED TRIPLEA CREDIT RATING THREE NOTCHES 9301220134 930122 WHO'S NEWS BRADLEES INC BRADLEES INC BRAINTREE MASS SAMUEL WW MANDELL EXECUTIVE VICE PRESIDENT WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS DISCOUNT CHAIN AS PRESIDENT MR MANDELL SUCCEEDS BARRY A BERMAN WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR MANDELL WILL ASSUME RESPONSIBILITY FOR BRADLEES STORES AND OPERATIONS 9301220133 930122 EC RULE ON LOWER CIGARETTE TAR IS BOON FOR DEALERS OF AMERICANBLEND TOBACCO BY GERRI WILLIS SPECIAL TO THE WALL STREET JOURNAL THE EUROPEAN COMMUNITY HAS TAKEN A STEP TOWARD CLEARING THE SMOKY HAZE CLOUDING CONTINENTAL CAFE SOCIETY BY LIMITING THE TAR CONTENT OF CIGARETTES THE NEW RULES EFFECTIVE THIS MONTH PROMISE BENEFITS TO US LEAF DEALERS WHOSE MILD AMERICANBLEND TOBACCO ALREADY FITS THE EC'S DEFINITION OF A GOOD SMOKE CIGARETTES THAT DOMINATED THE MARKET IN FRANCE AND SPAIN IN PARTICULAR WILL NOT QUALIFY SAYS THE CHIEF FINANCIAL OFFICER OF DANVILLE VA TOBACCO LEAF DEALER DIBRELL BROTHERS INC TH FAUCETT WE KNOW IT'S A POSITIVE IMPACT BUT THERE'S NO WAY OF KNOWING WHAT IT WILL BE THE NEW RULES WHICH LIMIT EUROPEAN CIGARETTES TO 15 MILLIGRAMS OF TAR EACH THIS YEAR AND 12 MILLIGRAMS BY 1995 REFLECT A WIDESPREAD MOVE TO USE AMERICANBLEND TOBACCO US TOBACCO LEAF PRODUCERS SAY THE MARKET SHARE OF FRENCHSTYLE HIGHTAR CIGARETTES ALREADY WAS DOWN BY 1990 TO A RANGE OF 35 TO 50 IN FRANCE SPAIN AND GERMANY FROM HIGHS OF 70 TO 75 MR FAUCETT SAID EVEN WITHOUT THE EC'S MANDATE CIGARETTES WITH AMERICANBLEND TOBACCO WERE EXPECTED TO REACH A 40 TO 50 SHARE BY THE YEAR 2000 THE TREND IS IMPORTANT BEYOND EUROPE IN THE FORMER SOVIET SATELLITES EUROPE AND PACIFIC RIM NATIONS THE SWITCH IS ON TO LIGHTER BLENDS FROM STINGINGLY STRONG 100 BURLEY TOBACCO CIGARETTES SAYS O KEMP DOZIER DIRECTOR OF INVESTOR RELATIONS FOR UNIVERSAL CORP A LEAF TOBACCO AND BUILDING PRODUCTS COMPANY IN RICHMOND VA AS A RESULT CONSUMPTION OF AMERICANBLEND TOBACCO WORLDWIDE IS EXPECTED TO SHOW GROWTH RATES OF 5 TO 7 ANNUALLY WHILE CONSUMPTION OF ALL TOBACCOS GROWS ONLY 2 TO 6 A YEAR BUT AMERICANBLEND DOESN'T MEAN USGROWN TOBACCO DEALERS DIBRELL BROTHERS STANDARD COMMERCIAL CORP AND UNIVERSAL CORP BUY THE WEED IN MARKETS THROUGHOUT THE WORLD IMPORTANT PRODUCTION AREAS INCLUDE BRAZIL ZIMBABWE AND MALAWI THESE COUNTRIES PUT OUT A GRADE OF TOBACCO WHICH IS QUITE HIGH AG EDWARDS TOBACCO ANALYST BARRY M ZIEGLER SAYS THE PRICE IS SIGNIFICANTLY LOWER THAN THAT IN THE US AND THE PROFIT MARGINS ARE SIGNIFICANTLY HIGHER DECLINING COSTS HAVE BECOME PARTICULARLY IMPORTANT FOR US CIGARETTE MAKERS WHO HAVE FOUND THEIR MARGINS NARROWING AS US CONSUMERS TRADE DOWN FROM EXPENSIVE NAME BRANDS TO GENERIC PRODUCTS IF THEY'RE LOOKING FOR CHEAPER TOBACCO IT MEANS THEY'RE LOOKING OFFSHORE SAYS GUY ROSS VICE PRESIDENT AND DIRECTOR OF INVESTOR RELATIONS FOR STANDARD COMMERCIAL BASED IN WILSON NC HE AND OTHER TOBACCO DEALERS EXPECT CHANGING TASTES TO BOOST PROFITS ALTHOUGH AG EDWARDS'S MR ZIEGLER EXPECTS ANNUAL VOLUME GROWTH OF 6 TO 7 FOR US LEAF DEALERS SOME OF THE COMPANY EXECUTIVES ARE EVEN MORE OPTIMISTIC ABOUT EARNINGS DIBRELL WHICH POSTED OPERATING PROFIT GROWTH OF 245 IN ITS TOBACCO BUSINESS IN FISCAL 1992 SHOULD ACHIEVE COMPANYWIDE EARNINGS GROWTH IN THE LOWER DOUBLE DIGITS IN THE NEXT TWO YEARS SAYS MR FAUCETT HE SAYS HE IS COMFORTABLE WITH EARNINGS PROJECTIONS FOR DIBRELL'S FISCAL YEAR ENDING IN JUNE OF 250 TO 260 A SHARE FOR A YEARTOYEAR GROWTH RATE OF 10 TO 14 UNIVERSAL'S MR DOZIER SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES OF 1 TO 102 FOR THE COMPANY'S SECOND QUARTER ENDED DEC 31 UP 12 TO 14 FROM A YEAR EARLIER NEITHER STANDARD COMMERCIAL'S MR ROSS NOR DIBRELL'S MR FAUCETT WOULD DISCUSS QUARTERLY EARNINGS SAYING QUARTERTOQUARTER RESULTS ARE DIFFICULT TO PREDICT BECAUSE OF THE TIMING OF DELIVERIES 9301220132 930122 TECHNOLOGY COMPUTER ASSOCIATES PROFIT ROSE 48 IN ITS THIRD PERIOD BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTER ASSOCIATES INTERNATIONAL INC SAID EARNINGS SOARED 48 IN ITS THIRD PERIOD AND THE SOFTWARE COMPANY'S SHARE PRICE ROSE 20 TO A RECORD IN AN INTERVIEW COMPUTER ASSOCIATES CHAIRMAN CHARLES WANG SAID HE WAS ELATED WITH THE BETTERTHANEXPECTED RESULTS FOR THE PERIOD AND SAID THE CURRENT QUARTER IS LOOKING SIMILARLY STRONG FOR THE QUARTER ENDED DEC 31 COMPUTER ASSOCIATES POSTED A PROFIT OF 802 MILLION OR 48 CENTS A SHARE UP FROM A RESTATED 542 MILLION OR 31 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE SURGED ALMOST 20 TO 5015 MILLION FROM 4191 MILLION DELIGHTED WITH THE RESULTS MANY ANALYSTS RUSHED BACK FROM A MEETING WITH MR WANG TO RAISE THEIR FORECASTS FOR COMPUTER ASSOCIATES IN HEAVY VOLUME OF 32 MILLION SHARES THE COMPANY'S SHARES ROSE 425 TO 2525 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE STOCK'S PREVIOUS HIGH OF 22125 WAS REACHED IN 1989 IT WAS A GREAT QUARTER A WONDERFUL QUARTER NO MATTER HOW YOU SLICE IT SAID TIMOTHY MCCOLLUM AN ANALYST AT DEAN WITTER REYNOLDS MR MCCOLLUM RAISED HIS OPINION ON COMPUTER ASSOCIATES STOCK TO A BUY SAYING IT COULD REACH THE LOW 30S OVER THE NEXT NINE MONTHS COMPUTER ASSOCIATES IS THE SECONDBIGGEST SOFTWARE COMPANY AFTER MICROSOFT CORP BUT DOESN'T GET AS MUCH ATTENTION AS MANY MAKERS OF SOFTWARE FOR PERSONAL COMPUTERS BECAUSE ITS REVENUE COMES MAINLY FROM SOFTWARE THAT RUNS ON MAINFRAME COMPUTERS WHICH ARE DECLINING IN POPULARITY DESPITE A DOWNTURN IN MAINFRAME SALES HOWEVER COMPUTER ASSOCIATES TOLD ANALYSTS THAT ITS MAINFRAMESOFTWARE REVENUE GREW HEALTHILY IN THE PERIOD AND WHEN THIS GROWTH FINALLY TAPERS OFF ANALYSTS SAID THE COMPANY IS WELLPOSITIONED WITH PRODUCTS SUCH AS ITS NEW SOFTWARE FOR THE UNIX OPERATING SYSTEM AND SOFTWARE FOR MINICOMPUTERS AND PCS I THINK THAT PEOPLE FORGET THAT SOFTWARE IS A DIFFERENT BUSINESS FROM HARDWARE SAID MR WANG ADDING THAT HE EXPECTS COMPUTER ASSOCIATES TO BE A BIG BENEFICIARY OF THE SHIFT AWAY FROM A MAINFRAMEDOMINATED WORLD NOT A VICTIM OF THE TREND DESPITE ITS MAINFRAME IMAGE COMPUTER ASSOCIATES HAS A SUBSTANTIAL BUSINESS IN PC SOFTWARE MR WANG SAID IT GREW 34 IN THE LATEST QUARTER TO 51 MILLION BUT SOME ANALYSTS THINK THE ACQUISITIVE COMPANY MAY DECIDE THIS YEAR THAT IT NEEDS TO BUY A MARQUEE NAME SUCH AS BORLAND INTERNATIONAL INC OR LOTUS DEVELOPMENT CORP TO BOLSTER ITS STANDING IN THE AREA MR WANG AGREED THAT GROWTH BY ACQUISITION IS AN INTEGRAL PART OF OUR STRATEGY HE NOTED THAT MANY PC SOFTWARE COMPANIES APART FROM MICROSOFT CURRENTLY ARE WEAK AND SOON MAY BE RIPE FOR ACQUISITION BUT HE SAID COMPUTER ASSOCIATES ISN'T IN DISCUSSION WITH ANY CANDIDATES COMPUTER ASSOCIATES HASN'T MADE A BIG PURCHASE SINCE 1991 ANALYSTS SAID THEY WERE ESPECIALLY PLEASED THAT THE COMPANY ONCE A NOTORIOUSLY UNPREDICTABLE PERFORMER NOW IS SHOWING CONSISTENTLY STRONG GROWTH EVEN WITHOUT ACQUISITIONS IF THEY CAN DELIVER NUMBERS LIKE THIS RIGHT NOW THEY HAVE AN AWFUL LOT OF POTENTIAL WHEN NEW PRODUCTS AND FUTURE ACQUISITIONS ARE CONSIDERED SAID DREW BROSSEAU OF COWEN & CO 9301220131 930122 MARKETING & MEDIA BLOCKBUSTER TO BUY MINORITY INTEREST IN A MOVIE MAKER A WALL STREET JOURNAL NEWS ROUNDUP BLOCKBUSTER ENTERTAINMENT CORP SAID IT AGREED TO PAY 25 MILLION FOR A MINORITY STAKE IN REPUBLIC PICTURES CORP AN INVESTMENT THAT SOME INDUSTRY ANALYSTS SAY COULD EVENTUALLY LEAD THE VIDEORENTAL CHAIN INTO THE MOVIEPRODUCTION BUSINESS BLOCKBUSTER SAID THAT WASN'T ITS INTENTION THOUGH GREGORY K FAIRBANKS BLOCKBUSTER'S CHIEF FINANCIAL OFFICER CALLED THE INVESTMENT A RESEARCH AND DEVELOPMENT EFFORT TO LEARN ABOUT THE MOVIEDISTRIBUTION BUSINESS AND TO GIVE BLOCKBUSTER ACCESS TO REPUBLIC'S LIBRARY OF 1400 FILMS REPUBLIC PICTURES AN INDEPENDENT FILM DISTRIBUTOR AND PRODUCER THAT DISTRIBUTES TO THE TELEVISION HOME VIDEO AND THEATRICAL MARKETS IS KNOWN FOR ITS CLASSIC WESTERN FILMS AND PRODUCED MANY JOHN WAYNE MOVIES ITS LIBRARY INCLUDES HIGH NOON THE QUIET MAN AND BELLS OF ST MARY'S A NEW MOVIE KNIGHT MOVES IS THE FIRST THEATRICAL FILM THE COMPANY HAS RELEASED NATIONWIDE IN SEVERAL YEARS MR FAIRBANKS SAID THERE MAY BE SYNERGIES BETWEEN THE RENTAL STORE AND THE DISTRIBUTION BUSINESSES ADDING IT ISN'T THE FIRST STEP IN OUR BECOMING INVOLVED IN THE PRODUCTION OF MOTION PICTURES HE SAID THE COMPANY DOESN'T HAVE ANY CURRENT PLANS FOR SIMILAR INVESTMENTS SOME ANALYSTS SEE THINGS DIFFERENTLY THIS PUTS THEIR FOOT IN THE DOOR IN PRODUCTION AND MAKES THEM MORE OF A PLAYER IN HOLLYWOOD BUT IT LEADS TO SOMETHING LARGER THAN SHORTTERM SYNERGIES SAYS VIDEO ANALYST TOM ADAMS OF PAUL KAGAN ASSOCIATES CARMEL CALIF BLOCKBUSTER COULD GAIN VALUABLE FILMPRODUCTION EXPERIENCE BEFORE ACQUIRING SOMETHING BIGGER OTHER HOLLYWOOD OBSERVERS SAY OR REPUBLIC COULD BEGIN MAKING BIGGERBUDGET PRODUCTIONS WITH ITS NEW CAPITAL BRUCE APAR EDITOR OF VIDEO BUSINESS SAID BLOCKBUSTER'S INVESTMENT IN REPUBLIC WAS AN INEVITABLE FIRST STEP TOWARD SOMEDAY ENTERING THE MOVIEMAKING BUSINESS THE LAST COUPLE OF YEARS ESPECIALLY IN 1992 THEY STARTED TO MAKE IT CLEAR THAT THEIR INTENT IS TO BECOME A FULLSCALE ENTERTAINMENT CONGLOMERATE MR APAR SAID THESE DAYS THE GROWTH IS TO A PROGRAMMING RIGHTS HOLDER THIS IS AN INDICATION THAT THEY DEFINITELY HAVE AN INTEREST IN OWNING EXCLUSIVE RIGHTS TO PROGRAMMING MR FAIRBANKS SAID THAT CURRENTLY THERE'S NOTHING EXCLUSIONARY ALTHOUGH THE COMPANIES' NEW RELATIONSHIP COULD LEAD TO A LOWER COST OF GOODS FOR VIDEO RENTAL UNDER THE CURRENT AGREEMENT BLOCKBUSTER WOULD PAY 25 MILLION TO ACQUIRE 25 MILLION NEW CLASS A COMMON SHARES ALONG WITH A PLANNED RECAPITALIZATION OF REPUBLIC PICTURES THAT WOULD LEAVE IT WITH ABOUT 73 MILLION COMMON SHARES BLOCKBUSTER'S STAKE WOULD AMOUNT TO ABOUT 35 REPUBLIC PICTURES SAID REPUBLIC PICTURES ALSO SAID IT WOULD ISSUE FIVEYEAR WARRANTS TO BLOCKBUSTER TO ACQUIRE AN ADDITIONAL 810000 SHARES OF REPUBLIC PICTURES GENERATING PROCEEDS OF ABOUT 9 MILLION BLOCKBUSTER WOULD ALSO GET TWO SEATS ON REPUBLIC'S BOARD BRINGING THE NUMBER OF DIRECTORS TO EIGHT BLOCKBUSTER HAS SAID IT WANTS TO DIVERSIFY IN THE ENTERTAINMENT BUSINESS AND LAST FALL IT AGREED TO ACQUIRE TWO LARGE RECORD CHAINS FOR ABOUT 185 MILLION INCLUDING THE ASSUMPTION OF DEBT BLOCKBUSTER PLANS TO BUILD A RETAIL RECORD CHAIN 9301220130 930122 TEXACO PROFIT FELL 34 IN 4TH PERIOD REFLECTING LOW PRICES AND SLIM MARGINS BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC AFTER A HOST OF SPECIAL ITEMS REPORTED A 34 DROP IN FOURTHQUARTER NET INCOME A PERFORMANCE ONE ANALYST TERMED RESPECTABLE GIVEN THE OIL INDUSTRY'S WOES GENERALLY THOSE INDUSTRY HEADACHES INCLUDE RELATIVELY LOW OIL PRICES NARROW PROFIT MARGINS ON REFINED PRODUCTS AND CONTINUED SLUGGISH WORLDWIDE DEMAND STILL BEFORE TAKING INTO ACCOUNT THE SPECIAL ITEMS TEXACO'S PROFITS WERE SHARPLY HIGHER FOR THE QUARTER AIDED BY THE OIL COMPANY'S EARLIER COSTCUTTING EFFORTS JAMES W KINNEAR TEXACO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE WHITE PLAINS NY COMPANY SAVED 500 MILLION IN 1992 FROM REDUCTIONS IN OPERATING AND OVERHEAD EXPENSES THE FIRST MAJOR OIL COMPANY TO REPORT EARNINGS FOR THE QUARTER TEXACO HAD NET INCOME OF 313 MILLION OR 111 A SHARE INCLUDING 40 MILLION IN GAINS FROM TAX BENEFITS AND ASSET SALES AND CHARGES OF 143 MILLION FOR PROPERTY DAMAGE SEVERANCE COSTS AND ENVIRONMENTAL ISSUES FOR THE 1991 FOURTH QUARTER TEXACO EARNED 324 MILLION OR 115 A SHARE WHICH INCLUDED 202 MILLION IN GAINS FROM ASSET SALES AND TAX BENEFITS AND CHARGES OF 173 MILLION FROM ENVIRONMENTAL PROGRAMS FOREIGN TAXES AND PENSION LIABILITIES PROFIT BEFORE SPECIAL ITEMS PROFIT BEFORE SPECIAL ITEMS IN THE LATEST QUARTER WAS 416 MILLION UP FROM 295 MILLION A YEAR EARLIER REVENUE IN THE QUARTER EASED TO 970 BILLION FROM 976 BILLION CONSIDERING THE OIL COMPANY'S OPERATIONS WITHOUT THE SPECIAL ITEMS ANALYSTS SAY TEXACO'S PERFORMANCE WAS EXPECTED IN LIGHT OF INDUSTRY CONDITIONS THE INDUSTRY IN THE US AND IN EUROPE IS SUFFERING FROM THE WEAK ECONOMY LEADING TO LOWERTHANAVERAGE REFINING MARGINS AND EXTREMELY POOR CHEMICAL RESULTS SAID PAUL MLOTOK AN ANALYST WITH MORGAN STANLEY & CO UNDER THESE CONDITIONS TEXACO'S PERFORMANCE WAS RESPECTABLE FOR THE YEAR TEXACO'S NET INCOME DROPPED 45 TO 712 MILLION OR 237 A SHARE FROM 129 BILLION OR 461 A SHARE DUE MOSTLY TO A 300 MILLION CHARGE FOR ADOPTING NEW ACCOUNTING STANDARDS ON POSTRETIREMENT EMPLOYEE BENEFITS THE 1992 NET INCOME FIGURE ALSO INCLUDED GAINS OF 40 MILLION FROM TAX BENEFITS AND ASSET SALES AND CHARGES OF 156 MILLION FROM PROPERTY DAMAGE SEVERANCE COSTS AND ENVIRONMENTAL ISSUES THE 1991 NET INCOME FIGURE INCLUDED GAINS OF 224 MILLION FROM TAX BENEFITS AND ASSET SALES AND THE 173 MILLION IN CHARGES FROM THE FOURTH QUARTER TEXACO'S REVENUE FOR THE YEAR FELL TO 3766 BILLION FROM 3832 BILLION IN LIGHT OF THIS DIFFICULT BUSINESS ENVIRONMENT WE ARE CONTINUING TO PLACE SPECIAL EMPHASIS ON IMPROVING PRODUCTIVITY MAINTAINING COMPETITIVENESS AND STRENGTHENING OUR FINANCIAL POSITION SAID MR KINNEAR TEXACO'S CHIEF EXECUTIVE DURING THE FOURTH QUARTER TEXACO SAID ITS US EXPLORATION AND PRODUCTION BUSINESS BENEFITED FROM HIGHER NATURAL GAS PRICES AND LOWER OPERATING COSTS OFFSET PARTLY BY LOWER CRUDE OIL PRICES AND LOWER PRODUCTION BEFORE SPECIAL ITEMS THAT SEGMENT REPORTED OPERATING EARNINGS OF 184 MILLION UP FROM 175 MILLION IN THE YEAREARLIER PERIOD OVERSEAS EXPLORATION AND PRODUCTION SAW A JUMP IN THE QUARTER TO 168 MILLION BEFORE SPECIAL ITEMS FROM 105 MILLION FOR THE YEAREARLIER QUARTER OPERATING EARNINGS FROM DOMESTIC MANUFACTURING AND MARKETING INCREASED SHARPLY TO 58 MILLION FROM 32 MILLION PRIMARILY BECAUSE OF IMPROVED WEST COAST PRODUCT MARGINS TEXACO SAID HOWEVER THE INTERNATIONAL BUSINESS IN THAT SEGMENT DROPPED TO 86 MILLION FROM 120 MILLION BECAUSE OF LOWER REFINERY MARGINS IN EUROPE AND DOWN TIME AT A WALES REFINERY TEXACO SAID LOSSES FROM ITS PETROCHEMICAL BUSINESS WIDENED TO 15 MILLION FOR THE 1992 QUARTER FROM 5 MILLION IN THE 1991 QUARTER THE COMPANY SAID IT RESTATED ITS RESULTS RETROACTIVE TO JAN 1 1992 TO REFLECT ADOPTION OF NEW ACCOUNTING RULES 9301220129 930122 AT&T AND MICROSOFT POST STOCK MARKET MILESTONES NEW YORK TWO COMPANIES POSTED STOCK MARKET MILESTONES YESTERDAY AMERICAN TELEPHONE & TELEGRAPH BECAME THE WORLD'S LARGEST COMPANY IN TERMS OF MARKET CAPITALIZATION WHEN ITS SHARES CLIMBED 1 1/4 TO 55 1/8 AT&T DETHRONED EXXON WHOSE SHARES LOST 3/8 TO 58 1/8 AT YESTERDAY'S CLOSING PRICES ON THE NEW YORK STOCK EXCHANGE AT&T'S 134 BILLION SHARES WERE VALUED AT 7363 BILLION EXXON'S 124 BILLION SHARES WERE VALUED AT 7216 BILLION MEANWHILE MICROSOFT JUMPED 1 1/8 TO 89 1/2 LIFTING THE SOFTWARE COMPANY'S STOCK MARKET VALUE ABOVE THAT OF INTERNATIONAL BUSINESS MACHINES WHICH LOST 1/2 TO 46 3/8 AT THE CLOSE OF TRADING YESTERDAY MICROSOFT'S 299 MILLION FULLY DILUTED SHARES HAD A MARKET VALUE OF 268 BILLION IBM'S 571 MILLION SHARES WERE VALUED AT 265 BILLION 9301220128 930122 MARKETING & MEDIA MRS BUSH SELLS MEMOIRS TO MACMILLAN PUBLISHING NEW YORK FORMER FIRST LADY BARBARA BUSH SOLD HER MEMOIRS TO MACMILLAN PUBLISHING CO FOR A SUM ESTIMATED AT WELL OVER 2 MILLION PUBLICATION IS SCHEDULED FOR THE FALL OF 1994 NEGOTIATIONS FOR THE BOOK WERE QUIET WITH MRS BUSH TALKING TO ONLY A FEW PUBLISHERS BEFORE CHOOSING TO WORK AGAIN WITH EDITOR LISA DREW MS DREW FORMERLY AT HEARST CORP'S WILLIAM MORROW & CO WORKED WITH MRS BUSH ON TWO BOOKS ABOUT WHITE HOUSE DOGS MILLIE'S BOOK AND C FRED'S STORY ALTHOUGH TERMS WEREN'T DISCLOSED VETERAN PUBLISHERS ESTIMATE THAT MRS BUSH'S ADVANCE WELL EXCEEDED THE 2 MILLION PLUS PAID TO NANCY REAGAN BECAUSE MRS BUSH IS MORE POPULAR AND HAS ALREADY WRITTEN A BESTSELLER MILLIE'S BOOK SOLD MORE THAN 500000 COPIES I THINK THIS COULD BE BIGGER THAN NORMAN SCHWARZKOPF'S BOOK SAID BARRY LIPPMAN PRESIDENT OF THE ADULT TRADE DIVISION OF MACMILLAN A UNIT OF MAXWELL COMMUNICATION CORP BARBARA BUSH HAS INTEGRITY SHE APPEALS TO THE WOMEN'S MARKET AND SHE HAS SOME TOUCHING STORIES TO TELL THERE'S ALSO WIDESPREAD EXPECTATION THAT MRS BUSH WILL CONTINUE IN THE TRADITION OF MRS REAGAN ROSALYNN CARTER AND BETTY FORD ALL OF WHOM OUTSOLD THEIR HUSBANDS' MEMOIRS SO FAR GEORGE BUSH HASN'T APPROACHED ANY PUBLISHERS ABOUT HIS AUTOBIOGRAPHY 9301220127 930122 LETTERS TO THE EDITOR WHITE LIES REGARDING YOUR DEC 22 ADVERTISING STORY RESORT ADS CAUGHT SNOWING THE SKI SET WHICH BEGINS SKI AREAS LIE WHO SHOULD KNOW BETTER THAN KILLINGTON I HAVE SKIED KILLINGTON'S OPEN TRAILS WHICH WERE HALF GRASS AND PART POTHOLE I WOULDN'T DRIVE MY FOURWHEELER ON SOME OF THEM I HAVE RACED FOR MY LIFE TO ESCAPE AND AVOID THE HORDES OF HOTDOGS ON THE LIMITED TERRAIN KILLINGTON OFFERS AT FULL PRICE EARLY IN ITS SEASON HOW NICE THAT KILLINGTON NOW TURNS TO HONESTY AS A LAST RESORT NO PUN INTENDED A LITTLE CONCERN FOR SAFETY MIGHT HELP TOO AS FOR ME I BOUGHT MY LAST KILLINGTON LIFT TICKET AROUND 1987 I WON'T BE BACK 9301220126 930122 FINANCING BUSINESS USX CORP USX CORP PITTSBURGH SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE OFFERING OF SIX MILLION CUMULATIVE CONVERTIBLE PREFERRED SHARES AT 50 EACH THE SHARES ARE TO BE CONVERTIBLE AT A PREMIUM YET TO BE ESTABLISHED INTO SHARES OF USXUS STEEL GROUP COMMON THE STEEL AND ENERGY COMPANY SAID THE ESTIMATED 300 MILLION IN PROCEEDS ARE TO BE USED BY THE STEEL GROUP FOR GENERAL BUSINESS PURPOSES LEAD UNDERWRITERS ARE GOLDMAN SACHS & CO FIRST BOSTON CORP AND LEHMAN BROTHERS 9301220125 930122 LETTERS TO THE EDITOR PRIVATE SACRIFICE FOR THE COLLECTIVE GOOD YOUR DEC 30 EDITORIAL PAGE ENVIRONMENTAL PREVIEW REVIEW & OUTLOOK AND READING LAURA TYSON BY KEVIN PRITCHETT CONTINUES THE CLINTON ADMINISTRATION BASHING YOU BEGAN THE MOMENT THE ELECTION WAS OVER THAT'S TO BE EXPECTED ONE SUPPOSES FROM A PUBLICATION CONVINCED THAT THE REAGAN YEARS WERE A GOLDEN AGE TRUE IT WAS A GOLDEN AGE FOR FINANCIERS AND MANIPULATORS BUT DROSS FOR THE MILLIONS WHO PAID THE PRICE IN JOBS LOST AS LEVERAGED BUYOUTS AND MERGERS DESTROYED BUSINESSES AND DISRUPTED LIVES MR PRITCHETT DISPARAGES LAURA TYSON PRESIDENT CLINTON'S NOMINEE FOR CHAIRPERSON OF THE COUNCIL OF ECONOMIC ADVISERS FOR TWO STATEMENTS ON THE CAPITALGAINS TAX CUT SHE SAYS THAT A CUT WOULD FURTHER REDUCE THE TAX BURDEN OF THE VERY RICH WHO DESPITE THE TAX BREAKS OF THE 1980S FAILED TO SAVE AND INVEST MORE AS TO THE AMERICAN VOTER IN THE RECENT PAST SHE SAYS A WELLFUNCTIONING DEMOCRACY DEPENDS ON AN INFORMED ELECTORATE OCCASIONALLY WILLING TO UNDERSTAND THE NEED TO MAKE TOUGH CHOICES AND CAPABLE OF MAKING PRIVATE SACRIFICES FOR THE COLLECTIVE GOOD THE AMERICAN ELECTORATE DOES NOT APPEAR TO FIT THE BILL A READING OF THE RECORD SHOWS THAT MS TYSON IS CORRECT ON BOTH COUNTS THE TAX BREAKS OF THE 1980S WERE NOT PUT BACK INTO PLANT AND CAPITAL FOR FUTURE GROWTH AND ONE ONLY HAS TO REFLECT ON THE SHORTSIGHTED AND SELFISH REJECTION OF THE CATASTROPHIC CARE PROGRAM BY A GREEDY AND SELFCENTERED ELECTORATE THAT PANICKED AN EQUALLY GREEDY AND SELFCENTERED CONGRESS FOR AN EXAMPLE OF AN ELECTORATE UNWILLING BOTH TO UNDERSTAND THE NEED FOR AND TO MAKE AN APPROPRIATE SACRIFICE WHEN CALLED UPON BILL CLINTON HAS PICKED AN ECONOMIC TEAM TO HIS LIKING COMPOSED PRESUMABLY OF THOSE WHO HAVE THE INTELLECT AND DRIVE TO TURN CAMPAIGN RHETORIC INTO CONCRETE RESULTS GIVEN WHAT WE KNOW OR THINK WE KNOW ABOUT THIS TEAM IT SEEMS CLEAR THAT THERE WILL BE VIGOROUS DEBATE ON ALL ISSUES BEFORE THE NEW ADMINISTRATION SETS ITS POLICIES THESE POLICIES NOTWITHSTANDING YOUR WISHES TO THE CONTRARY WILL ALMOST CERTAINLY NOT BE THOSE OF THE STATUS QUO ANTE MR PRITCHETT SUGGESTS WE WILL FINALLY HAVE SOMEONE IN THE GOVERNMENT WHO DOESN'T THINK ABOUT THE INTERNATIONAL ECONOMY BASED SOLELY ON MYTHICAL FREE MARKET THEOLOGY MS TYSON APPARENTLY ACKNOWLEDGES THAT WITH CIVILIZATION COME RULES REGULATIONS AND TAXES IE GOVERNMENT AND THOSE FACTORS HAVE ENORMOUS ECONOMIC IMPACT MS TYSON IS PREPARED TO SAY THAT THE QUESTION ISN'T IF GOVERNMENT WILL HAVE GREAT ECONOMIC IMPACT THAT'S A GIVEN THE QUESTION IS WHAT IS THE IMPACT AND HOW DO WE MODIFY GOVERNMENT POLICIES TO OUR COUNTRY'S BEST INTERESTS THE US HAS HAD AN UNSPOKEN INDUSTRIAL POLICY FOR YEARS THAT HAS SUBSIDIZED HOME OWNERSHIP INTEREST DEDUCTION FHA VA ETC FARMING AUTOS VERY LOW GAS TAX AND DEFENSE I HOPE MS TYSON WILL HELP US ANALYZE THOSE POLICIES AND MODIFY THEM AND/OR DEVELOP OTHERS I ALSO HOPE SHE WILL HELP SOME OF AMERICA'S MOST IMPORTANT EMPLOYERS SUCH AS BOEING FIND AN ALTERNATIVE TO LOSING OUT TO ASIAN OR EUROPEAN GOVERNMENTS IE AIRBUS OR JUST JOINING FORCES WITH THEM WE CERTAINLY CAN'T COMPETE LONG TERM IF WE CONTINUE IN OUR NAIVE AND UNWORKABLE RELIANCE ON A MYTHICAL FREE MARKET REGARDING MS TYSON'S STATEMENT THAT THERE IS NO RELATIONSHIP BETWEEN THE TAXES A NATION PAYS AND ITS ECONOMIC PERFORMANCE OUR CHAIRPERSONNOMINEE FOR THE COUNCIL OF ECONOMIC ADVISERS COMMITS ONE OF THE STANDARD ANALYTICAL FALLACIES OF THE NOVICE ECONOMIST STATIC ANALYSIS IF ONE SIMPLY COMPARES VARIOUS PERIODS IN US HISTORY SOME WITH HIGH TAX RATES OTHERS WITH LOW TAX RATES IT MAY BE DIFFICULT TO DISCERN ANY CORRELATION WITH ECONOMIC GROWTH RATES THE CORRECT APPROACH IS A DYNAMIC ANALYSIS STUDY THE EFFECT OF CHANGES IN MARGINAL TAX RATES RECENT HISTORY SHOWS HOW A SHARP REDUCTION IN MARGINAL RATES IN 1980 TRIGGERED A PROLONGED PERIOD OF ABOVEAVERAGE GROWTH WHILE AN INCREASE IN FEDERAL TAX RATES NOT TO MENTION STATE AND LOCAL IN MID1990 LED ALMOST IMMEDIATELY TO RECESSION LET'S HOPE MS TYSON DOES A LITTLE MORE HOMEWORK BEFORE RECOMMENDING ANY POLICY CHANGES MR PRITCHETT MISLEADS YOUR READERS ABOUT MS TYSON'S VIEWS ON YUGOSLAVIA SHE FORCEFULLY ADVOCATED RELIANCE ON MARKETS TO ALLOCATE GOODS AND CAPITAL SHE CORRECTLY PREDICTED THE INFLATIONARY CONSEQUENCES OF ABANDONING MARKET PRICING SHE ALSO CRITICIZED THE RADICAL DECENTRALIZATION OF THE POLITICAL STRUCTURE THAT DEPRIVED THE FEDERAL GOVERNMENT OF CONTROL OVER FISCAL AND MONETARY POLICY HER SUPPORT FOR MARKETS WAS CLEAR HER CONCERN ABOUT THE DECLINE OF US INDUSTRIAL PRODUCTIVITY GROWTH RATES COMPARED WITH THOSE OF OUR GLOBAL COMPETITORS DESERVES SUPPORT NOT OBFUSCATION HER WILLINGNESS TO TALK STRAIGHT ON CAPITAL GAINS THE DEFICIT TAXES AND THE PUBLIC'S AVERSION FOR HARD CHOICES IS EVEN REFRESHING THOSE WHO KNOW HER WORK ARE PLEASED BY HER NOMINATION AS CHAIR OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS 9301220124 930122 THURSDAY'S MARKETS STOCKS ADVANCE ON PROFIT NEWS NASDAQ TOPS 700 BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL UPBEAT PROFIT REPORTS AND A RISING BOND MARKET PROPELLED STOCKS HIGHER LIFTING THE NASDAQ COMPOSITE INDEX ABOVE THE 700 LEVEL FOR THE FIRST TIME THE DOLLAR STRENGTHENED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1107 POINTS TO 325302 STANDARD & POOR'S 500STOCK INDEX ROSE 212 TO 43549 THE NASDAQ COMPOSITE JUMPED 333 TO 70077 SINCE THE SMALLSTOCK RALLY BEGAN IN OCTOBER THE INDEX HAS SOARED 212 JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID THAT FOR THE NEXT FEW DAYS THE MARKET WILL CONTINUE TO FOCUS ON EARNINGS AND OTHER COMPANYSPECIFIC NEWS IN THE ABSENCE OF SIGNIFICANT ECONOMIC DATA AND STOCK PRICES ARE LIKELY TO MOVE HIGHER BECAUSE THE PROFIT REPORTS ARE EXPECTED TO BE MOSTLY POSITIVE WE'RE IN A BASIC UPTREND MR MCALINDEN SAID IT MAY BE HARDER TO SEE WHEN YOU LOOK AT THE DOW INDUSTRIALS BUT SMALL STOCKS ARE DOING WELL AND THE S&P MAY SOON BREAK OUT TO A NEW HIGH HE NOTED THAT THE EXPECTED STRING OF STRONG EARNINGS CONFIRMS RECENT ECONOMIC TRENDS EARNINGS ARE BEGINNING TO REFLECT THE PICKUP IN THE ECONOMY MR MCALINDEN SAID IT'S THE NEXT STEP IN THE ECONOMIC STORY GENE JAY SEAGLE A TECHNICAL ANALYST AT GRUNTAL & CO SAID THAT ALTHOUGH HE EXPECTS THE DOW INDUSTRIALS TO GAIN 400 POINTS THIS YEAR PICKING THE RIGHT STOCKS IS BECOMING MORE IMPORTANT THAN EVER WHAT IMPORTANCE DOES IT HAVE TO SAY THE MARKET IS GOING UP OR DOWN IF YOU HAVE STOCKS THAT HAVE FANTASTIC MOVES MR SEAGLE SAID WORLDWIDE STOCK PRICES FELL IN LATE NEW YORK TRADING THE DOW JONES WORLD STOCK INDEX WAS DOWN 001 TO 9158 IN MAJOR MARKET ACTION STOCK PRICES CLIMBED VOLUME TOTALED 2574 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1008 ISSUES ROSE AND 806 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 7295 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16138 MARKS AND 12480 YEN COMPARED WITH 16030 MARKS AND 12468 YEN WEDNESDAY 9301220123 930122 MARKETING & MEDIA CLINTON PLAYS TO FULL HOUSE WITH GOOD TV RATINGS NEW YORK BILL CLINTON PLAYED TO A FULL HOUSE WEDNESDAY ON HIS FIRST NIGHT AS PRESIDENT OF THE UNITED STATES DRAWING BONA FIDE PRESIDENTIAL TV RATINGS AMERICANS WERE EAGER TO SEE THEIR NEW LEADER WAIL ON THE SAXOPHONE AND GO BALLHOPPING WITH HIS WIFE AND DAUGHTER JUDGING FROM THE BETTERTHANUSUAL RATINGS ON THE NETWORKS THAT AIRED INAUGURATION SHOWS AT 10 PM EST CBS INC BEAT OUT ITS RIVALS WITH A RATING OF 147 OF ALL US HOMES WITH TV SETS ACCORDING TO AC NIELSEN CO THE NETWORK'S 48 HOURS HERE COMES MR CLINTON POSTED SIGNIFICANTLY BETTER RATINGS THAN USUAL GENERAL ELECTRIC CO'S NBC UNIT FINISHED SECOND WITH 13 OF HOMES TUNING IN TO INAUGURATION 1993 THE NETWORK USUALLY GETS A 108 RATING IN THAT TIME SLOT WITH LAW AND ORDER THE ABC NETWORK A UNIT OF CAPITAL CITIES/ABC INC SKIPPED THE CELEBRATIONS AND THE RATINGS SHOWED IT THE NETWORK'S GOING TO EXTREMES DREW JUST 85 OF HOMES MTV A UNIT OF VIACOM INC WHICH HOSTED A STARSTUDDED BALL DREW AN AUDIENCE FIVE TIMES LARGER THAN IT TYPICALLY GETS AT 10 PM GETTING 3 OF THE 56 MILLION HOMES IT REACHES IN THE FIRST 15 MINUTES OF THE SHOW WHEN MR CLINTON MADE HIS APPEARANCE THE NETWORK USUALLY GETS A 06 RATING IN THE TIME SLOT TURNER BROADCASTING SYSTEM INC'S CNN MORE THAN DOUBLED ITS NORMAL RATINGS WITH A ONEHOUR SPECIAL THE INAUGURATION REACHING 26 OF ITS 60 MILLION SUBSCRIBER UNIVERSE 9301220122 930122 INTERNATIONAL PRIVATE HANDS NOW TILL HUNGARIAN SOIL AS STATE SELLS FARMS FOREIGNERS HOPE TO REAP GAINS BY ERNEST BECK SPECIAL TO THE WALL STREET JOURNAL APAJ HUNGARY MARK CHERRINGTON LEANS FORWARD IN HIS SEAT AND GAZES AT THE BLEAK HUNGARIAN LANDSCAPE AS THE CAR BUMPS ALONG A POTHOLEMARRED ROAD THAT'S OURS AND THAT AND ALL THAT OVER THERE HE SAYS SWINGING HIS ARM IN AN ARC IT'S BLOODY BEAUTIFUL ISN'T IT BUT THERE ISN'T MUCH OUT THERE FLAT FIELDS STRETCH TO THE HORIZON BROKEN ONLY BY AN OCCASIONAL CLUMP OF SCRAWNY TREES BUILDINGS AND RUSTY TRACTORS STAND IDLE EXCEPT FOR A FEW FARMHANDS SOWING WINTER WHEAT BY MACHINE NOTHING STIRS NOT EVEN A STRAY CHICKEN SO WHY IS THIS BRITISH ENTREPRENEUR SO EXCITED IN JULY MR CHERRINGTON AND FIVE BRITISH AGROBUSINESS FRIENDS SIGNED AN EXCLUSIVE 90YEAR LEASE ON THIS 22000ACRE PROPERTY AFTER CONVINCING HUNGARIAN PRIVATIZATION OFFICIALS THEY COULD TRANSFORM THE FORMER STATE FARM INTO A PROFITABLE MARKETDRIVEN ENTERPRISE WITH THE STROKE OF A PEN THEY BECAME REVOLUTIONARIES IN THE RADICAL UNRAVELING OF HUNGARY'S FARMCOLLECTIVIZATION PROGRAM WHICH DATES BACK TO THE COMMUNIST TAKEOVER IN 1948 BY 1994 HUNGARY HOPES TO HAVE PRIVATIZED THE ENTIRE FARM AND FOODDISTRIBUTION SECTOR ABOUT 161 MILLION ACRES OF CROPLAND AND DOZENS OF FOODPROCESSING COMPANIES ARE SLATED TO RETURN TO PRIVATE HANDS EITHER HUNGARIAN OR FOREIGN SOME 125 STATE FARMS WILL BE LEASED IN THEIR ENTIRETY OR CHOPPED INTO SMALLER PARCELS AND FARMERS AT 1386 COOPERATIVES WILL GET THEIR LAND BACK THEY WILL BE ABLE TO CHOOSE BETWEEN PRIVATE FARMING OR STAYING IN THE COMMUNAL STRUCTURE FOREIGN CONCERNS ALREADY ARE SNAPPING UP ATTRACTIVE ASSETS IN THE CHOCOLATE TOBACCO SPIRITS SUGAR AND VEGETABLEOIL INDUSTRIES BRAND LEADERS SUCH AS PHILIP MORRIS COS AND ITS KRAFT DIVISION TATE & LYLE PLC OF BRITAIN AND THE SPRAWLING FERRUZZI AGROINDUSTRIAL GROUP OF ITALY HAVE BEEN ON A BUYING SPREE FASTFOOD COMPANIES SUCH AS MCDONALD'S CORP HAVE MADE JOINTVENTURE DEALS WITH STATE FARMS TO SUPPLY MEAT ALMOST 40 OF THE NEARLY 2 BILLION IN FOREIGN INVESTMENT HAS BEEN IN FOOD AND AGRICULTURERELATED SECTORS SOME HUNGARIANS OBJECTED STRONGLY TO PUTTING HUNGARIAN FARMLAND UNDER FOREIGN CONTROL BUT GYORGY RASKO THE AGRICULTURE MINISTRY OFFICIAL IN CHARGE OF THE PRIVATIZATION DISMISSES THIS AS AN EMOTIONAL ARGUMENT WHAT FARMING NEEDS HE ARGUES IS FRESH CAPITAL WHATEVER THE SOURCE TO COUNTER CLAIMS THAT THEY ARE USURPING THE LAND MR CHERRINGTON THE ENGLISH FARMER SAYS HE DOESN'T PLAN TO STAY AT THE FARM FOREVER HUNGARIANS ARE BEING TRAINED TO TAKE OVER ALL OPERATIONS HE SAYS PERHAPS WITHIN A FEW YEARS FOR NOW MR CHERRINGTON AND HIS FRIENDS ARE THE FIRST FOREIGN FARMERS TO STAKE A CLAIM AND SETTLE DOWN ON THE EDGE OF HUNGARY'S LEGENDARY PRAIRIELAND THE PUSZTA I GUESS YOU COULD CALL US PIONEERS OR MAYBE STORM TROOPERS IS A BETTER WORD HE MUSES LIKE ALL STATE FARMS FORMED FROM SMALL HOLDINGS BY THINKBIG CENTRAL PLANNERS THIS ONE IS HUGE FOR AN UNDISCLOSED PRICE MR CHERRINGTON'S GROUP GOT 10000 ACRES OF CROPLAND 12000 ACRES OF GRAZING LAND INCLUDING A SIZEABLE CHUNK OF THE KISKUNSAG NATIONAL PARK 1000 DAIRY COWS A MANOR HOUSE HOTEL WITH 26 ROOMS 200 THOROUGHBRED HORSES A GRAVEL QUARRY AND SEVERAL THOUSAND SHEEP JUST A FEW YEARS AGO MR CHERRINGTON HAD A MODEST 800ACRE HOLDING IN THE ROLLING GREEN HILLS OF HAMPSHIRE SOUTHWEST OF LONDON WHERE HE RAISED SOME PIGS AND A FEW CROPS AND ORGANIZED CLAY PIGEON SHOOTS FOR TOURISTS BUT FED UP WITH EUROPEAN COMMUNITY AGRICULTURAL DICTATES HE AND HIS FRIENDS DECIDED TO LOOK FOR A PLACE FREE FROM WHAT HE CALLS THE ARTIFICIAL RULES AND REGULATIONS MADE UP BY BLOODY BUREAUCRATS AND ACCOUNTANTS AT EC HEADQUARTERS IN BRUSSELS THEN THEY HEARD ABOUT HUNGARY IT'S GOT SOME OF THE BEST ARABLE LAND IN EUROPE WELLTRAINED FARMERS LITTLE OR NO SUBSIDIES A GOOD COST STRUCTURE AND WAGES EQUIVALENT TO ABOUT 140 A MONTH HE SAYS HIS JERSEYBASED COMPANY BRONZE INVESTMENT BID ON THE BANKRUPT FARM AND AFTER A YEAR OF GRUELING NEGOTIATIONS WITH THE STATE PROPERTY AGENCY MR CHERRINGTON AND HIS ASSOCIATES MOVED IN IN ADDITION TO MASSIVE ACREAGE AND ASSURANCES FROM THE AGRICULTURE MINISTRY IN BUDAPEST OF COMPLETE FREEDOM TO OPERATE THE PROPERTY OFFERED OTHER ATTRACTIONS DANUBE FARMS AS IT IS NOW CALLED IS ONLY 60 MILES FROM BUDAPEST'S CENTRAL TRANSPORT HUB AND A STONE'S THROW FROM THE DANUBE THE SOURCE FOR AN EXTENSIVE IRRIGATION SYSTEM UNTIL RECENTLY HUNGARIAN AGRICULTURE WAS ONE OF THE FEW COMMUNIST SUCCESS STORIES WITH ITS RICH SOIL AND GOOD CLIMATE HUNGARY WAS TAPPED AS A MASS PRODUCER OF CHEAP FOOD FOR THE EAST BLOC THE HUNGARIAN COMMUNIST REGIME LAVISHED MONEY AND WESTERN TECHNOLOGY ON FARMERS JOHN DEERE TRACTORS IZED HEREFORD BULLS AND HIGHYIELD SEEDS ARRIVED FROM THE US THE RECIPE FOR THIS GOULASH COMMUNISM ALSO INCLUDED A DASH OF FREEMARKET INCENTIVES COOPERATIVE FARMERS WERE GRANTED SMALL PRIVATE PLOTS AND ALLOWED TO SELL THEIR PRODUCE ON THE SIDE AS A RESULT HUNGARIANS NEVER WENT HUNGRY WHILE THEIR EAST BLOC NEIGHBORS QUEUED FOR BREAD HEARTY MEALS WERE SERVED HERE SHOPS AND STALLS WERE ALWAYS WELLSTOCKED HUNGARY EVEN EARNED HARD CURRENCY BY EXPORTING TO THE WEST FARM EXPORTS STILL ACCOUNT FOR 26 BILLION ANNUALLY OR 25 OF ALL EXPORTS THE COMMUNISTS WERE RATHER CLEVER CONCEDES MR RASKO OF THE AGRICULTURE MINISTRY THEIR OVERALL STRATEGY WORKED UNFORTUNATELY PROFITABILITY AND LIQUIDITY WEREN'T IMPORTANT ISSUES IT WAS EFFICIENT BUT HEAVILY SUBSIDIZED NOW WE WANT TO CHANGE OWNERSHIP AND CREATE COMPETITIVE AND SUSTAINABLE AGRICULTURE WITH LITTLE DIRECT GOVERNMENT SUPPORT A RUTHLESS SLASHING OF SUBSIDIES TO AN AVERAGE OF ABOUT 7 OVER THE PAST FEW YEARS PAVED THE WAY FOR MR CHERRINGTON'S RESCUE MISSION TWENTY STATE FARMS 500 COOPERATIVES AND 60 FOOD COMPANIES DECLARED BANKRUPTCY AS SUBSIDY CUTS TOOK EFFECT WITH A DEVASTATING DROUGHT AND COLLAPSE OF THE SOVIET AND RELATED EAST BLOC MARKETS HUNGARY'S ONCE FLOURISHING AGRICULTURE SUDDENLY FACED RUIN THINGS WERE SO BAD AT DANUBE FARMS THAT WINTER CATTLE FEED WAS SOLD TO PAY DEBTS THIS PLACE WAS SERIOUSLY BANKRUPT MR CHERRINGTON RECALLS ANOTHER THREE WEEKS AND IT WOULD HAVE BEEN TOO LATE TODAY THE HERD IS THRIVING AND MILK YIELDS HAVE INCREASED 20 AFTER MR CHERRINGTON'S QUICK ACTION TO BRING IN MACHINES TO CONVERT CORN TO SILAGE WHEN THE NEW MANAGERS ARRIVED MR CHERRINGTON RECALLS THE CHAPS HERE LOOKED AT US AS IF WE'D COME FROM THE MOON NOW JANOS SUHAJDI A SHY 22YEAROLD STABLE HAND IS HAPPY THE OLD BOSSES HAVE BEEN PUT TO PASTURE THE STATE MANAGERS NEVER REALLY CARED HE SAYS SO THINGS GOT SLOPPY MR CHERRINGTON COMES OUT AND SEES US WORKING HE TALKS TO US HE LISTENS HE ENCOURAGES US WITH MR CHERRINGTON'S WESTERN SKILLS IN MARKETING AND DISTRIBUTION DANUBE FARMS JUST MIGHT SUCCEED BUT MANY HUNGARIAN FARMERS WHO TRY TO GO IT ALONE FACE FAILURE THEY ARE GOOD FARMERS BUT THEY JUST DO NOT UNDERSTAND THE COMPLEXITIES OF MODERN AGRICULTURE SAYS A GERMAN ADVISER TO THE AGRICULTURE MINISTRY IT'S ESTIMATED THAT A QUARTER OF SOME 70000 COOPERATIVE FARMERS WHO WILL CHOOSE TO TAKE BACK LAND UNDER PRIVATIZATION WILL END UP BANKRUPT A FEELING OF CRISIS IS ALREADY SPREADING IN THE COUNTRYSIDE MINISTRY OFFICIALS SAY SO FAR 350000 AGRICULTURAL WORKERS HAVE LOST THEIR JOBS AND UNEMPLOYMENT RUNS AS HIGH AS 40 IN SOME REGIONS THOUGH THE EC REMAINS HUNGARY'S MAIN EXPORT MARKET THE PAINFUL RESTRUCTURING MAY BE HELPED BY A RESURGENCE OF LOST MARKETS IN EASTERN EUROPE AND THE FORMER SOVIET REPUBLICS MR RASKO AT THE AGRICULTURE MINISTRY SAYS TRADE TO EASTERN MARKETS HAS ALREADY BOUNCED BACK TO ALMOST 1 BILLION IN 1992 9301220121 930122 INTERNATIONAL MEXICO LEADER ENTERS LAST LEG OF TERM A PERIOD KNOWN TO PRODUCE CALAMITIES BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY SINCE THE DAYS OF THE IMPERIOUS AZTEC CHIEFTAINS MEXICO HAS BEEN A COUNTRY OF IRONFISTED RULERS NOWADAYS PEOPLE CALL THE SYSTEM PRESIDENCIALISMO WHICH ESSENTIALLY MEANS THAT MEXICO'S CHIEF EXECUTIVE RUNS ROUGHSHOD OVER THE ANEMIC LEGISLATIVE AND JUDICIAL BRANCHES OF GOVERNMENT BUT IN RECENT DECADES THERE IS ONE THING THAT ALL OF THE MEXICAN PRESIDENTS' POWER HASN'T BROUGHT THEM A HAPPY ENDING TO THEIR TERMS IN OFFICE AFTER ENJOYING VARYING DEGREES OF SUCCESS DURING THEIR FIRST FOUR YEARS IN OFFICE THE PAST FOUR MEXICAN PRESIDENTS HAVE ALL BEEN BROUGHT LOW BY MAJOR CALAMITIES IN THE FINAL THIRD OF THEIR SIXYEAR TERMS SINCE THE LATE 1960S THE SAD SWAN SONGS OF MEXICAN PRESIDENTS HAVE INCLUDED MILITARY MASSACRES STOCK MARKET CRASHES PESO DEVALUATIONS AND STREET DEMONSTRATIONS OVER ELECTORAL FRAUD NOW PRESIDENT CARLOS SALINAS DE GORTARI PROBABLY THE MOST SUCCESSFUL MEXICAN PRESIDENT IN DECADES IS ENTERING THE CRITICAL LAST LEG OF HIS PRESIDENCY WHICH ENDS IN LATE 1994 THE UNEASE IN THIS CAPITAL'S WINTER AIR IS ALMOST AS PALPABLE AS THE SMOG EVERYONE KNOWS WE ARE ENTERING THE PERIOD WHEN OUR LEADERS GO BERSERK FRETS JOSE LUIS COINDREAU AN INDUSTRIALIST WHO IS A MEMBER OF THE NATIONAL BOARD OF THE OPPOSITION NATIONAL ACTION PARTY OR PAN MANY SAY THAT DIFFICULT FINAL DAYS ARE ENDEMIC IN A POLITICAL SYSTEM THAT INVESTS EXTRAORDINARY POWER IN ONE MAN FROM THE DAY OF HIS INAUGURATION EVERYONE PRAISES THE PRESIDENT AND OF COURSE THE PRESIDENT IS HAPPY TO BELIEVE THEM SAYS MR COINDREAU WHEN HE VISITS A TOWN THEY PAVE THE STREETS AND PLANT TREES SO IT LOOKS BETTER OVER TIME THIS GIVES HIM A FALSE IMAGE OF THE COUNTRY'S SITUATION AND AN EXAGGERATED IDEA OF HIS OWN ACCOMPLISHMENTS THIS HUBRIS LEADS THE PRESIDENT TO SOME FORM OF OVERREACHING AND INEVITABLY A TRAGIC DOWNFALL MR COINDREAU SAYS THE PAN POLITICIAN GOT TO SEE THE METAMORPHOSIS OF A MEXICAN CHIEF EXECUTIVE UP CLOSE WHEN HE REPRESENTED A LARGE BUSINESS LOBBY DURING THE TERM OF PRESIDENT JOSE LOPEZ PORTILLO FROM 1976 TO 1982 THE FIRST FEW YEARS I COULD SIT DOWN WITH HIM AND REASON THINGS OUT MR COINDREAU SAYS BUT BY THE END OF THE FOURTH YEAR I KNEW BY THE LOOK IN HIS EYES THAT I WASN'T GETTING THROUGH THAT WAS ABOUT THE TIME THAT FALLING OIL PRICES CAUSED MEXICO TO RUN OUT OF MONEY A CRISIS THE PRESIDENT EXACERBATED BY IMPETUOUSLY NATIONALIZING THE BANKS EVEN A SOBER TECHNOCRAT LIKE MIGUEL DE LA MADRID HURTADO WHO GOVERNED FROM 1982 TO 1988 COULDN'T ESCAPE AN ENDOFTERM DEBACLE MR DE LA MADRID ENTERED THE LAST THIRD OF HIS PRESIDENCY RIDING AN ECONOMIC RESURGENCE BUT IN HIS FIFTH YEAR A STOCK MARKET CRASH SPARKED A RUN ON THE PESO AND AN EXPLOSION OF TRIPLEDIGIT INFLATION THAT SET THE STAGE FOR THE BITTERLY CONTESTED ELECTION OF MR SALINAS AND THE WORST STREET DEMONSTRATIONS IN 20 YEARS FOR HIS PART MR SALINAS MAINTAINS THAT THE PREVIOUS ENDOFTERM COLLAPSES RESULTED NOT FROM FLAWS IN THE POLITICAL SYSTEM BUT FROM ECONOMIC POLICY ERRORS WHICH HE VOWS NOT TO REPEAT THEY WERE FINISHING WITH VERY HIGH INFLATION HE SAYS HERE WE ARE FINISHING WITH THE LOWEST INFLATION IN A QUARTER CENTURY IN MEXICO AND WHILE IN OTHER ERAS THEY ENDED WITH VERY BIG FISCAL DEFICITS HERE WE ARE ENTERING THE FIFTH YEAR WITH A FISCAL SURPLUS SO FAR MR SALINAS'S EFFORTS TO KEEP A TIGHT REIN ON THE ECONOMY HAVE BEEN WELL RECEIVED RAUL ARECHIGA DIRECTORGENERAL OF AERO CALIFORNIA A REGIONAL AIRLINE BASED IN BAJA CALIF ATTENDED MR SALINAS'S NOVEMBER STATE OF THE NATION ADDRESS OR INFORME WITH A DEGREE OF TREPIDATION MANY PRESIDENTS HAVE USED THE INFORME TO DROP BOMBSHELLS SUCH AS THE BANK NATIONALIZATION THIS TIME THE WORD THAT WAS REPEATED WAS CONSOLIDATION CONSOLIDATION CONSOLIDATION SAYS MR ARECHIGA IT WAS ALL THE OPPOSITE OF THE CRAZINESS WE'VE HAD IN THE PAST BUSINESS CONFIDENCE WILL BE CRITICAL IF THERE IS ONE VULNERABLE SPOT IN THE SALINAS REGIME IT IS THE GOVERNMENT'S NEED TO ATTRACT A STEADY FLOW OF PRIVATE INVESTMENT TO FUND A YAWNING GAP IN MEXICO'S CURRENT ACCOUNT AND ENSURE STABILITY OF THE PESO IT WILL BE ESPECIALLY IMPORTANT TO WIN OVER FOREIGN INVESTORS WHO NOW HOLD A FIFTH OF MEXICO'S TREASURY BILLS AND PUBLICLY TRADED STOCK MOST FOREIGNERS THINK MR SALINAS WILL STEER THE ECONOMY THROUGH THE ENDOFTERM MINEFIELD YOU HAVE A CURRENT ACCOUNT DEFICIT OF 18 BILLION AND CURRENCY RESERVES OF ABOUT 20 BILLION SAYS BORJA USSIA PRESIDENT OF GRUPO MONEDA A SPANISH INVESTMENT HOUSE THAT RECENTLY SET UP SHOP HERE THAT'S A MARGIN OF AN ENTIRE YEAR'S RESERVES AND WHAT DO FOREIGNERS MAKE OF MEXICO'S POLITICAL OUTLOOK MR USSIA SIGHS IT TAKES A MEXICAN TO UNDERSTAND THIS INDEED EVEN THOUGH MR SALINAS WON'T REVEAL HIS HANDPICKED SUCCESSOR UNTIL LATE 1993 THE PRESIDENTIAL ASPIRANTS WITHIN MEXICO'S DOMINANT INSTITUTIONAL REVOLUTIONARY PARTY ARE ALREADY JOCKEYING FOR POWER BUT THIS SUCCESSION WILL BE DIFFERENT OPPOSITION CANDIDATES ALSO WILL BE JOCKEYING FOR POWER AS NEVER BEFORE THE CONSERVATIVE PAN IS BOLSTERED BY HAVING RECENTLY WON CONTROL OF THREE GOVERNORSHIPS THE FIRST STATEHOUSES EVER RUN BY THE OPPOSITION THE LEFTIST DEMOCRATIC REVOLUTIONARY PARTY HAS HAD MAJOR INTERNAL PROBLEMS BUT IT STILL REMEMBERS THAT IT GAVE MR SALINAS A SCARE IN THE 1988 PRESIDENTIAL ELECTION THE NEW STRENGTH OF THE OPPOSITION EXPLAINS WHY EVEN A CONFIRMED CYNIC LIKE THE PAN'S MR COINDREAU THINKS THIS PRESIDENCY WILL END MORE HAPPILY THAN THOSE BEFORE IT NOW THE PRESIDENT IS GOING TO HEAR THINGS HE DOESN'T WANT TO HEAR FROM THE OPPOSITION POLITICIANS IN CONGRESS IN STATE GOVERNMENTS AND IN THE PRESIDENTIAL CAMPAIGN HE SAYS ALL OF THIS SHOULD KEEP THIS PRESIDENT'S FEET ON THE GROUND ANYWAY I HOPE SO 9301220120 930122 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED JAN 15 ACCOUNTED FOR 129 OR AN AVERAGE 34 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 27 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 372 INVOLVED STOCKINDEX ARBITRAGE UP FROM 32 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 365 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 472 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 163 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND UBS SECURITIES DID MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE FIRST BOSTON MERRILL LYNCH AND MORGAN STANLEY DID MOST OR ALL OF THEIR PROGRAM TRADING FOR CUSTOMERS 9301220119 930122 BRISTOLMYERS PFIZER POST GAINS IN NET FOR 4TH QUARTER BUT STOCKS ARE MIXED BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DRUG MAKERS BRISTOLMYERS SQUIBB CO AND PFIZER INC REPORTED INCREASES IN FOURTHQUARTER SALES AND EARNINGS BUT ANALYSTS SAID THEY WERE DISAPPOINTED AT BRISTOLMYERS'S SALES AND IMPRESSED BY THE RESULTS REPORTED BY PFIZER ESPECIALLY ITS ROBUST SALES LED BY SEVERAL NEW PRESCRIPTION MEDICINES BRISTOLMYERS SQUIBB SAID NET INCOME FOR THE QUARTER ROSE 14 FROM A YEAR EARLIER AFTER A HOST OF ONETIME GAINS EXPENSES AND CHARGES ALTHOUGH THE EARNINGS WERE WITHIN WALL STREET'S FORECAST RANGE ANALYSTS SAID THEY WERE DISAPPOINTED THAT SALES GREW LESS THAN 1 PHARMACEUTICAL SALES WERE ESPECIALLY WEAK WITH US SALES SLIPPING 65 WHILE INTERNATIONAL SALES ROSE 35 INVESTORS FEEL THE QUALITY OF EARNINGS WAS VERY POOR SAID DAVID LIPPMAN AN ANALYST AT DEAN WITTER BRISTOLMYERS SHARES FELL 125 TO 6075 IN NEW YORK STOCK EXCHANGE TRADING FOR THE QUARTER BRISTOLMYERS EARNED 583 MILLION OR 113 A SHARE COMPARED WITH 510 MILLION OR 98 CENTS A SHARE A YEAR EARLIER THE RESULTS HOWEVER INCLUDED A GAIN ON THE SALE OF DRACKETT CO TO SC JOHNSON & SON AS WELL AS A RESTRUCTURING CHARGE AND EXPENSES RELATED TO A NEW ACCOUNTING STANDARD FOR POSTRETIREMENT BENEFITS EXCLUDING THESE GAINS AND CHARGES BRISTOLMYERS' EARNINGS WERE 540 MILLION OR 105 A SHARE FOURTHQUARTER SALES OF 28 BILLION WERE EVEN WITH THE YEAREARLIER PERIOD FULLYEAR EARNINGS FELL 5 TO 196 BILLION OR 379 A SHARE FROM 21 BILLION OR 395 A SHARE EXCLUDING A ONETIME CHARGE FOR AN ACCOUNTING CHANGE EARNINGS FOR THE YEAR ROSE 7 SALES ROSE 6 TO 112 BILLION FROM 106 BILLION FUELED BY A 12 INCREASE IN INTERNATIONAL SALES THAT WAS PARTLY DUE TO EXCHANGERATE FLUCTUATIONS DOMESTIC SALES ROSE 1 THE COMPANY BLAMED ITS FOURTHQUARTER SALES RESULT ON A TOUGH COMPARISON WITH THE YEAREARLIER PERIOD WHEN DOMESTIC PHARMACEUTICAL SALES ROSE 28 BECAUSE OF HEAVY BUYING BY WHOLESALERS AHEAD OF A PRICE INCREASE US SALES WERE ALSO HURT LATE LAST YEAR BY PRESSURE ON THE DRUG INDUSTRY TO HOLD DOWN PRICE INCREASES SAID D LARRY SMITH AN ANALYST AT HAMBRECHT & QUIST DEMAND WAS REDUCED IN SEVERAL EUROPEAN COUNTRIES AS WHOLESALERS ANTICIPATED THAT CHANGES IN GOVERNMENT POLICIES WOULD FORCE DRUG PRICE DECLINES EARLY THIS YEAR ANALYSTS SAID MR LIPPMAN SAID HE EXPECTS BRISTOLMYERS WILL SHOW SUBSTANTIAL IMPROVEMENT IN 1993 PFIZER'S NET FOR THE FOURTH QUARTER WAS 2788 MILLION OR 83 CENTS A SHARE COMPARED WITH 900000 OR NO PERSHARE EARNINGS IN THE YEAREARLIER PERIOD THE PREVIOUS YEAR INCLUDED A CHARGE OF 58 CENTS A SHARE FOR POTENTIAL CLAIMS RELATED TO THE COMPANY'S SHILEY HEART VALVE SALES ROSE 5 TO 195 BILLION FROM 185 BILLION FOR THE YEAR NET WAS 8109 MILLION OR 241 A SHARE AFTER CHARGES FOR TWO NEW ACCOUNTING CHANGES COMPARED WITH 7221 MILLION OR 213 A SHARE BEFORE CHARGES 1991 EARNINGS WERE 11 BILLION OR 325 A SHARE PFIZER'S SHARES ROSE 150 TO 65 ON THE NEW YORK STOCK EXCHANGE THE ONETIME CHARGES OBSCURE THE 32 INCREASE IN DRUG SALES IN THE FOURTH QUARTER WHICH MR LIPPMAN CALLED SPECTACULAR BUT HE WARNED SUCH GROWTH WON'T BE SUSTAINABLE IN 1993 BECAUSE OF COMPETITIVE PRESSURES 9301220118 930122 POLAROID TO POST SHARPLY LOWER PROFIT FOR 1992 BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS POLAROID CORP CITING DISAPPOINTING EUROPEAN SALES IN THE FOURTH QUARTER SAID IT EXPECTS TO REPORT SIGNIFICANTLY LOWER OPERATING PROFIT IN 1992 THAN THE PREVIOUS YEAR THE INSTANT PHOTOGRAPHY CONCERN WASN'T MORE SPECIFIC ABOUT THE YEAR OR ITS FOURTHQUARTER RESULTS BUT AFTER THE ANNOUNCEMENT SOME ANALYSTS PROJECT NET INCOME FOR THE FOURTH QUARTER TO PLUNGE TO BETWEEN 23 MILLION AND 28 MILLION OR 50 CENTS TO 60 CENTS A SHARE THAT COMPARES WITH NET OF 585 MILLION OR 116 A SHARE IN THE YEARAGO PERIOD OPERATING PROFIT WHICH POLAROID DEFINES AS PROFIT BEFORE SPECIAL ITEMS INTEREST EXPENSE AND TAXES WAS 962 MILLION IN 1991'S FOURTH QUARTER IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE POLAROID SHARES WERE QUOTED AT 27875 A SHARE DOWN 2 THEIR BUSINESS IN EUROPE ESSENTIALLY EVAPORATED IN DECEMBER SAID ALEX HENDERSON ANALYST WITH PRUDENTIAL SECURITIES FOR POLAROID WHICH GETS 50 OF ITS BUSINESS FROM INTERNATIONAL SALES THE EUROPEAN RECESSION HAS BEEN A SHARP BLOW ANALYSTS WHO BEGAN TRIMMING 1992 EARNINGS ESTIMATES LAST MONTH WHEN RUMORS OF DECLINING EUROPEAN SALES BEGAN TO CIRCULATE REDUCED THEM AGAIN AFTER POLAROID'S ANNOUNCEMENT YESTERDAY EUGENE GLAZER OF DEAN WITTER REYNOLDS LOWERED HIS 1992 PROJECTION FOR POLAROID TO 2 A SHARE FROM THE 225 HE HAD ESTIMATED LAST MONTH MR GLAZER RECKONS THAT POLAROID EARNED 207 A SHARE IN 1991 EXCLUDING A ONETIME GAIN OF 925 MILLION THE COMPANY RECEIVED IN SETTLEMENT OF A LAWSUIT AGAINST EASTMAN KODAK INC POLAROID'S NET FOR 1991 INCLUDING THE GAIN WAS 6837 MILLION OR 1254 A SHARE A SOFT ECONOMY IN EUROPE COMES AT A TIME OF ADDED EXPENSES AT POLAROID WHICH IS PREPARING FOR WIDER DISTRIBUTION OF ITS VISION LINE AND INTRODUCING HELIOS A NEW MEDICAL IMAGING SYSTEM ANALYSTS HAD BEEN PROJECTING PERSHARE EARNINGS IN 1993 OF 235 TO 270 THAT WILL BE COMING DOWN TO BETWEEN 220 AND 250 PER SHARE MR HENDERSON SAID POLAROID HAS INDICATED THAT A NEW LINE OF VISION CAMERAS PREVIOUSLY CODENAMED JOSHUA HAS BEEN SELLING BRISKLY IN EUROPE DESPITE THE RECESSION BUT PROFIT MARGINS FROM SALES OF THE CAMERA ARE SMALL IF ANY ANALYSTS SAY POLAROID ALSO MAKES HIGH RESOLUTION IMAGING FOR MEDICAL APPLICATIONS AND OTHER IMAGING EQUIPMENT FOR BUSINESSES BUT ALMOST ALL OF ITS PROFITS ARE DERIVED FROM ITS SALE OF FILM THE COMPANY SAID IT EXPECTS TO REPORT FOURTH QUARTER AND YEAREND EARNINGS FOR 1992 DURING THE FIRST WEEK OF FEBRUARY 9301220117 930122 WHO'S NEWS SCECORP SCECORP ROSEMEAD CALIF AL FOHRER 42 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER OF THIS UTILITY HOLDING COMPANY HE HAD BEEN VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER OF THE HOLDING COMPANY 9301220115 930122 PHELPS DODGE SAYS 1992 NET TOTALED UP TO 440 A SHARE BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL PHELPS DODGE CORP EXPECTS TO REPORT 1992 EARNINGS IN LINE WITH ANALYSTS' ESTIMATES CHAIRMAN AND PRESIDENT DOUGLAS C YEARLEY SAID ANALYSTS HAVE PREDICTED THAT THE PHOENIXBASED COPPER PRODUCER WILL POST NET INCOME OF 425 TO 440 A SHARE UP FROM 343 A SHARE IN 1991 THE 1992 EARNINGS INCLUDE A GAIN OF 52 CENTS A SHARE FROM THE SALE OF 20 OF A CHILEAN MINING PROPERTY TO SUMITOMO CORP IN SEPTEMBER AND WERE AIDED BY LOWER COSTS IN COPPER PRODUCTION AND IMPROVED PERFORMANCE IN THE COMPANY'S INDUSTRIAL SEGMENTS PHELPS DODGE ALSO SAID IT EXPECTS TO POST A FOURTHQUARTER PROFIT OF 85 CENTS TO A 1 A SHARE COMPARED WITH 108 A SHARE A YEAR EARLIER MR YEARLEY SAID THE COMPANY WILL ANNOUNCE NEXT WEEK WHETHER IT WILL TAKE ADJUSTMENTS AGAINST 1992 EARNINGS FOR THE ADOPTION OF FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENTS 106 AND 109 THE COMPANY HAS ESTIMATED THAT THE ADOPTION OF RULE 106 WOULD RESULT IN A 100 MILLION TO 125 MILLION PRETAX CHARGE THE FIRST OF THE TWO ACCOUNTING RULES STATEMENT 106 REQUIRES EMPLOYERS TO REFLECT IN THEIR CURRENT EXPENSES AN ACCRUAL FOR THE COST OF PROVIDING RETIREMENT MEDICAL AND LIFE INSURANCE BENEFITS TO CURRENT AND FUTURE RETIREES RULE 109 PERMITS ACCELERATED RECOGNITION OF UNUSED TAX BENEFITS WE'RE VERY PROUD OF OUR 1992 RESULTS PARTICULARLY IN SPITE OF THE FACT WE CLOSED DOWN SULFIDE COPPER PRODUCTION AT THE COMPANY'S TYRONE MINE MR YEARLEY SAID SULFIDE ORE PRODUCTION TOTALED 135 MILLION POUNDS IN 1991 AND PHELPS DODGE MADE UP FOR THAT LOSS BY INCREASING OXIDE COPPER PRODUCTION AT TYRONE AND BY AN EXPANSION AT ITS MORENCI MINE HE SAID BOTH MINES ARE IN ARIZONA MR YEARLEY SAID HE EXPECTS THE COMPANY TO REPORT THAT REVENUE WAS UP SLIGHTLY FROM 24 BILLION IN 1991 BECAUSE OF HIGHER REFINED COPPER SALES PRODUCTION AT PHELPS DODGE'S MINES WAS ABOUT THE SAME AS IN 1991 WHEN IT REACHED 108 BILLION POUNDS AND SHOULD BE AT A SIMILAR LEVEL IN 1993 HE SAID THE PRICE OF COPPER ON THE NEW YORK COMMODITIES EXCHANGE AVERAGED 103 A POUND LAST YEAR DOWN FROM 105 IN 1991 THE EXECUTIVE SAID SALES AT THE COMPANY'S PHELPS DODGE INDUSTRIES DIVISION ROSE AS A RESULT OF AN IMPROVING US ECONOMY OUR PERCENTAGE INCREASE IN SALES WAS MUCH GREATER THAN THE COUNTRY'S GNP GROWTH PARTICULARLY IN TRUCK WHEELS AND CARBON BLACK SALES TO THE TRUCK INDUSTRY HE SAID WE SAW A VERY NICE RECOVERY IN THE US IN THE YEAR IN DEMAND PRICES HOWEVER DIDN'T RISE MUCH HE SAID DURING THE YEAR THE COMPANY STARTED DEVELOPING ITS LA CANDELARIA COPPER AND GOLD MINE IN CHILE WHICH IS SCHEDULED TO BEGIN PRODUCING AT ABOUT 100000 METRIC TONS OF COPPER ANNUALLY BY EARLY IN 1995 A METRIC TON IS 22046 POUNDS THE PROJECT 80OWNED BY PHELPS DODGE SHOULD INCREASE ITS COPPER PRODUCTION BY 200 MILLION POUNDS A YEAR OR ABOUT 20 THE COMPANY SAID IT HAS SETTLED ON TERMS FOR THE PROJECT AND THAT FINANCING SHOULD BE COMPLETED IN THE SECOND QUARTER FEASIBILITY STUDIES ON TWO EXPLORATION PROJECTS THE MCDONALD GOLD PROPERTY IN MONTANA AND THE DOS POBRES COPPER PROJECT IN ARIZONA ARE EXPECTED TO BE COMPLETED THIS YEAR PHELPS DODGE INDUSTRIES APPROVED SEVERAL NEW PROJECTS IN THE YEAR INCLUDING A VENTURE TO BUILD A 55 MILLION CARBON BLACK PLANT IN HUNGARY AND THE PURCHASE OF WIRE AND CABLE BUSINESSES IN VENEZUELA THE COMPANY ALSO OPENED A WIRE AND CABLE PLANT IN THAILAND PHELPS DODGE SAID ITS CASH FLOW EXCEEDED CAPITAL NEEDS IN 1992 AND THE COMPANY ENDED THE YEAR WITH MORE THAN 250 MILLION IN CASH AND A DEBTTOCAPITALIZATION RATIO OF 20 DURING THE YEAR PHELPS DODGE SPLIT ITS STOCK 2FOR1 AND RAISED ITS QUARTERLY DIVIDEND 10 MR YEARLEY SAID PHELPS DODGE HAS THE FINANCIAL FLEXIBILITY TO TAKE ADVANTAGE OF ATTRACTIVE OPPORTUNITIES AMONG THE LIKELY TARGETS FOR INVESTMENT WOULD BE DEVELOPING MCDONALD OR DOS POBRES PURCHASING OTHER MINE PROPERTIES AND LOOKING AT OTHER EXPANSIONS IN PHELPS DODGE INDUSTRIES HE SAID 9301220114 930122 CREDIT MARKETS TREASURY ISSUES RALLY ON CONTINUED SPECULATION OF CHANGE IN US GOVERNMENT'S BORROWING MIX BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY NOTES AND BONDS RALLIED LATE YESTERDAY AMID CONTINUED SPECULATION ABOUT THE OUTLOOK FOR CHANGES IN TREASURY FINANCING THE BENCHMARK 30YEAR BOND POSTED THE BIGGEST PRICE GAINS BY RISING 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 103 27/32 FOR A YIELD OF 7295 DOWN FROM 733 ON WEDNESDAY YESTERDAY MARKED THE FIRST TIME IN FOUR MONTHS THAT THE YIELD ON THE BOND CLOSED BELOW 730 THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 98 17/32 TO YIELD 657 DOWN FROM 659 AND THE SEVENYEAR NOTE ROSE MORE THAN 1/4 POINT TO 100 26/32 TO YIELD 621 DOWN FROM 626 TRADING ACTIVITY YESTERDAY CONTINUED TO BE DOMINATED BY SPECULATION ABOUT POSSIBLE CHANGES IN THE WAY THE GOVERNMENT FUNDS THE NATIONAL DEBT THE TREASURY MARKET INITIALLY STARTED THE DAY ON THE WEAK SIDE WITH THE LONGER MATURITIES CHALKING UP LOSSES ON AN UNFOUNDED RUMOR THAT TREASURY SECRETARY LLOYD BENTSEN WAS GOING TO HAVE A NEWS CONFERENCE TO DENY THAT THERE WILL BE ANY REDUCTIONS IN THE AMOUNT OF LONG BONDS ISSUED AFTER THE RUMOR WAS DENIED BY TREASURY OFFICIALS PRICES STABILIZED AND SETTLED INTO NARROW RANGES THE MARKET REALLY HAD A FLAT OR SIDEWAYS TONE FOR MOST OF THE SESSION NOTED WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC BUT AT MIDAFTERNOON LAURA TYSON IN LINE TO BE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS SAID THE CLINTON ADMINISTRATION WOULD BE TAKING A LOOK AT CHANGING THE BORROWING MIX MS TYSON'S REMARK PROMPTED BUYING AT THE LONG END THAT SNOWBALLED LATE IN THE SESSION PARTICIPANTS SAID THE BUYING APPEARED TO MOSTLY BE TRADERS COVERING SHORTS POSITIONS WHERE SECURITIES ARE SOLD IN ANTICIPATION OF BEING BOUGHT BACK AT LOWER LEVELS TRADERS WERE IMPRESSED BY THE MARKET'S ABILITY TO CONTEND WITH EARLY SELLING AT WHAT ARE REGARDED AS SOMEWHAT HIGH PRICES THE MARKET HAS A GREAT DEAL OF RESILIENCE MR SULLIVAN SAID THE 30YEAR BOND HAS NOW RISEN FOR FIVE OUT OF THE LAST SIX TRADING SESSIONS WITH YESTERDAY'S GAINS REVERSING LOSSES POSTED WEDNESDAY WHILE MS TYSON'S COMMENTS MAY HAVE HELPED THE MARKET ANALYSTS NOTED HER REMARK DID NOT BREAK NEW GROUND FOR THE CLINTON ADMINISTRATION WITH OTHER OFFICIALS HAVING ALREADY INDICATED A SHIFT IN THE BORROWING MIX AWAY FROM LONGER SECURITIES WAS BEING CONSIDERED I CATEGORIZE IT AS OLD NEWS SAID MR SULLIVAN BUT THE CONTINUING TALK THAT THERE WILL BE FEWER LONG BONDS ISSUED IN FEBRUARY HAS CREATED A GREAT DEAL OF NERVOUSNESS AMONG TRADERS AS A RESULT PARTICIPANTS ARE RELUCTANT TO MAINTAIN LARGE SHORT POSITIONS IN THE LONG BOND BECAUSE IF IN FACT FEWER BONDS ARE ISSUED THE SCRAMBLE FOR THE SECURITIES WOULD MORE THAN LIKELY CAUSE A PAINFUL RALLY MANY ANALYSTS REMAIN SKEPTICAL THAT A SHIFT IN THE BORROWING MIX WILL BE REVEALED WHEN THE ANNOUNCEMENT FOR THE REFUNDING AUCTIONS IS MADE ON FEB 3 OUR FEELING IS THE TREASURY IS NOT GOING TO MAKE ANY SIGNIFICANT CUTS AT THE FEBRUARY REFUNDING SAID LOUIS CRANDALL CHIEF ECONOMIST AT R H WRIGHTSON & ASSOCIATES THEY HAVE TOO MUCH ELSE ON THEIR PLATE RIGHT NOW YESTERDAY THE TREASURY DID ANNOUNCE A CHANGE IN THE SIZE OF THE COMING TWOYEAR AND FIVEYEAR NOTE AUCTIONS THE TREASURY PLANS TO SELL 1525 BILLION OF TWOYEAR NOTES NEXT TUESDAY AND 115 BILLION OF FIVEYEAR NOTES NEXT WEDNESDAY COMPARED WITH 155 BILLION AND 1125 BILLION RESPECTIVELY AT LAST MONTH'S AUCTION ANALYSTS SAY THE CUT IN THE SIZE OF THE TWOYEAR NOTE WAS MADE POSSIBLE BY AN INCREASED PACE OF TAX PAYMENTS INTO THE TREASURY'S COFFERS AS MANY INDIVIDUALS APPEAR TO HAVE ACCELERATED INCOME FROM 1993 INTO 1992 AMID FEAR OF HIGHER TAX RATES THE TREASURY HAS ALREADY REDUCED THE SIZE OF THE WEEKLY THREEMONTH AND SIXMONTH BILL AUCTIONS BY 16 BILLION THIS YEAR THE OVERALL TREND SINCE THE BEGINNING OF THE YEAR IS FOR AUCTION SIZES BEING CUT SAID MR CRANDALL OF WRIGHTSON ASSOCIATES THE BOOST IN THE SIZE OF THE FIVEYEAR OFFERING APPEARS TO BE RELATED TO THE TREASURY'S CALLING LAST WEEK OF ABOUT 500 MILLION IN OUTSTANDING BONDS ANALYSTS SAID ANALYSTS CAUTIONED THAT THE CHANGES IN THE TWOYEAR AND FIVEYEAR NOTE AUCTION DID NOT SIGNAL ADDITIONAL BORROWING CHANGES ARE ON THE WAY BUT STEVE WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BANK OF AMERICA IN SAN FRANCISCO SAID IT SHOWS THEY'RE WILLING TO TINKER IN WHENISSUED TRADING LATE YESTERDAY THE TWOYEAR NOTE YIELDED 436 AND THE FIVEYEAR NOTE YIELDED 582 BOND TRADERS AND INVESTORS WHO HAD BEEN EXPECTING AN ANNOUNCEMENT BY PRESIDENT CLINTON ON WHETHER OR NOT HE WOULD ENFORCE SPENDING CUTS REQUIRED BY THE 1990 BUDGET AGREEMENT WERE DISAPPOINTED BY THE CLOSE OF TRADING YESTERDAY IN NEW YORK NO ANNOUNCEMENT HAD YET BEEN MADE ALTHOUGH IT WAS BELIEVED THAT THE WHITE HOUSE WOULD ISSUE SOME SORT OF STATEMENT YESTERDAY AS MANDATED BY LAW WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS INDICATED THAT SUCH OUTLAY REDUCTIONS WOULD BE UNWISE AT A NEWS CONFERENCE MR STEPHANOPOULOS SAID THAT THE BUDGET LAW IF ENFORCED AS WRITTEN WOULD REQUIRE THE WHITE HOUSE TO REDUCE GOVERNMENT SPENDING BY 50 BILLION OVER THE NEXT 10 MONTHS HALF OF THOSE CUTS WOULD HAVE TO COME FROM DEFENSE ACCOUNTS SAID MR STEPHANOPOULOS THIS ACTION DOESN'T SEEM WISE AT THIS TIME WHEN US SERVICEMEN ARE CURRENTLY ENGAGED IN CONFLICTS IN SOMALIA AND IRAQ HE SAID BOND INVESTORS HAD LOOKED FORWARD TO THE ANNOUNCEMENT AS AN EARLY SYMBOLIC SHOW OF THE PRESIDENT'S COMMITMENT TO REDUCING THE FEDERAL BUDGET DEFICIT PRESIDENT CLINTON HAD TO DECIDE BY YESTERDAY WHETHER TO ADJUST DEFICIT CEILINGS WRITTEN INTO THE 1990 DEFICITREDUCTION LAW THUS RENDERING THE CEILING MEANINGLESS OR LEAVE THE CEILINGS UNCHANGED AND RISK ACROSSTHEBOARD SPENDING CUTS IN THE FUTURE THE DECISION IS CONSIDERED SYMBOLIC BECAUSE IT WOULDN'T HAVE INVOLVED MUCH MONEY THE WEEKLY MONEY SUPPLY NUMBERS WHICH ARE USUALLY RELEASED ON THURSDAY WILL BE RELEASED TODAY BECAUSE OF THE FEDERAL HOLIDAY WEDNESDAY IN OBSERVANCE OF THE PRESIDENTIAL INAUGURATION CORPORATE BOND PRICES ENDED HIGHER YESTERDAY WHILE A WIDE RANGE OF BORROWERS SOLD 13 BILLION OF NEW CORPORATE BONDS INVESTMENTGRADE BONDS GAINED 1/8 TO 1/4 POINT AFTER MODEST DECLINES EARLIER IN THE SESSION TRADERS SAID THAT THE YIELD GAPS BETWEEN CORPORATE BOND YIELDS AND TREASURYS WERE GENERALLY UNCHANGED DURING THE SESSION A SIGN THAT DEMAND FOR NEW CORPORATE BONDS WAS HOLDING STEADY IN THE HIGHYIELD MARKET MOST JUNK BONDS ROSE 1/8 TO 1/4 POINT IN EARLY TRADING BUT STABILIZED LATER IN THE SESSION CORPORATE ISSUERS CONTINUED TO FAVOR ISSUING DEBT MATURING IN SEVEN OR 10 YEARS SPECIALTYCHEMICAL CONCERN WR GRACE & CO OFFERED 300 MILLION OF 10YEAR NOTES WHILE REAL ESTATE DEVELOPER ROUSE CO RAISED 120 MILLION THROUGH THE SALE OF 10YEAR NOTES HOWEVER OTHER BORROWERS VENTURED FARTHER OUT ON THE TREASURY CURVE AMONG THEM WAS THE CANADIAN PROVINCE OF SASKATCHEWAN WHICH ISSUED 400 MILLION OF 20YEAR DEBENTURES ALTHOUGH THE DEAL COST INVESTORS MORE THAN EXPECTED DEALERS LED BY SALOMON BROTHERS INC WERE ABLE TO INCREASE THE SIZE OF THE DEAL BY A THIRD DEALERS CLOSE TO THE ISSUE ATTRIBUTED THE OFFERING'S SUCCESS TO THE OVERALL STRONG TONE IN THE CORPORATE MARKET AND THE STABLE YIELD GAPS BETWEEN CANADIAN YANKEE ISSUES AND TREASURYS DESPITE SIZABLE YANKEE OFFERINGS BY CANADIAN UTILITY HYDROQUEBEC AND THE PROVINCES OF QUEBEC ONTARIO AND BRITISH COLUMBIA YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN ENTITIES IN THE US THE 400 MILLION ISSUE OF 20YEAR DEBENTURES WAS PRICED WITH 8 COUPONS AT 98329 TO YIELD 8171 OR 083 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND THE DEBENTURES ARE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP OVERHEAD DOOR CORP OFFERED 85 MILLION IN JUNK BONDS YESTERDAY THE SENIOR NOTES THAT MATURE IN 2000 WERE PRICED AT PAR TO YIELD 1225 WELL BELOW THE ANTICIPATED YIELD OF 125 TO 1275 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED THROUGH FIRST BOSTON CORP AND IS RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P PRICES OF MUNICIPAL BONDS ENDED LOWER WITH PRICES GENERALLY OFF 1/4 TO 5/8 POINT IN SECONDARY TRADING THE NEW JERSEY DISTRICT WATER SUPPLY COMMISSION'S 600 REFUNDING BONDS OF 2021 WERE DOWN 1/4 AT 98 1/2 TO YIELD 609 AMONG NEW ISSUES THE RIVERSIDE COUNTY CALIF TRANSPORTATION COMMISSION'S 1341 MILLION ISSUE OF 1993 SERIES A SALES TAX REVENUE BONDS WAS PRICED BY A SYNDICATE OF UNDERWRITERS INCLUDING GOLDMAN SACHS & CO AND SMITH BARNEY HARRIS UPHAM & CO YIELDS RANGED FROM 350 IN 1994 TO 600 IN 2009 ON THE COMPETITIVE SIDE THE TEXAS WATER DEVELOPMENT'S 52 MILLION OF SERIES A B C D AND E BONDS WERE APPARENTLY WON BY A FIRST BOSTON CORP GROUP FIRST BOSTON WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST TO THE ISSUER FOR THE A B AND D SERIES AT ABOUT 5898 AND THE C AND E SERIES AT ABOUT 5907 SEPARATELY THE STATE OF TEXAS' 75 MILLION OF COLLEGE STUDENT LOAN BONDS WERE APPARENTLY WON COMPETITIVELY BY A CHEMICAL SECURITIES GROUP WITH A BID SETTING THE TRUE INTEREST COST AT ABOUT 5736 YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 445 IN 1996 TO 627 IN 2017 THERE ARE NO MUNICIPAL PRICINGS EXPECTED TODAY PRICES OF MORTGAGEBACKED SECURITIES FINISHED SLIGHTLY HIGHER TRADING WAS DIRECTIONLESS FOR MOST OF THE SESSION BUT THE PRIMARY MARKET WAS ACTIVE ABOUT 4 BILLION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND INCREASES TO EXISTING ISSUES WERE ANNOUNCED IN SECONDARY ACTIVITY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR FEBRUARY DELIVERY ENDED 6/32 HIGHER AT 100 21/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES BOTH FINISHED 1/8 POINT HIGHER AT 100 23/32 AND 100 16/32 RESPECTIVELY IN YESTERDAY'S REMIC ISSUANCE FANNIE MAE BROUGHT FIVE DEALS WHILE FREDDIE MAC ANNOUNCED THREE OTHERS BOTH 15YEAR AND 30YEAR SECURITIES WERE USED AS COLLATERAL COUPONS USED INCLUDED 65 7 AND 8 ISSUES AS WELL AS INTERESTONLY AND PRINCIPALONLY CLASSES OF OTHER DEALS MEANWHILE THE RESOLUTION TRUST CORP IS EXPECTED TODAY TO PRICE ITS FIRST DEAL OF THE YEAR BACKED BY COMMERCIAL AND MULTIFAMILY MORTGAGE LOANS ORIGINATED BY FAILED THRIFTS THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9301220113 930122 PEPPERAND SALT A POSTURE CALLED THE LOTUS I SIMPLY CAN'T GET UP ARE IN OTHER FIRMS OR MINE 9301220112 930122 REVIEW & OUTLOOK EDITORIAL BURYING THE FUTURE A FEDERAL JUDGE HAS PLOPPED ANOTHER SCIENCE AND TECHNOLOGY CHOICE IN THE LAP OF THE CLINTON ADMINISTRATION AS WITH THE VON ROLL INCINERATOR DEBATE IN OHIO THIS ONE CONCERNS DISPOSAL BUT IT DIRECTLY AFFECTS MEDICINE AND BIOTECHNOLOGY INDUSTRIES ON WHICH THE NEW PRESIDENT CAN HELP THE UNITED STATES BUILD A HIGHERWAGE ECONOMY IN A TASTE OF WHAT AWAITS OTHER PARTS OF THE COUNTRY CALIFORNIA'S BIOMEDICAL AND SURGICAL TALENT AT WORK IN THE FIELD OF NUCLEAR MEDICINE IS RUNNING UP AGAINST A DESPERATE SCARCITY OF SITES FOR DISCARDING THE REMNANTS OF LOWLEVEL NUCLEAR TECHNOLOGY USED IN SO MANY CUTTINGEDGE FIELDS OF RESEARCH AND PRACTICE THE SITUATION BECAME PRESSING THIS YEAR WHEN TWO WESTERN US DUMPS BECAME OFFLIMITS TO CALIFORNIA SHIPMENTS FORCING THEM TO A REMAINING DESTINATION IN SOUTH CAROLINA UNTIL THAT TOO BECOMES UNAVAILABLE OVER THE NEXT COUPLE OF YEARS GOVERNOR PETE WILSON FIGHTING A MANYFRONT WAR TO KEEP INDUSTRY FROM LEAVING HIS REELING STATE STEPPED UP EFFORTS TO OPEN A CALIFORNIA SITE AS WAS PROMISED YEARS AGO TO THE AFFECTED SCIENTISTS AND ENTREPRENEURS AND AS THE FEDERAL GOVERNMENT ITSELF HAS DEMANDED OF IT AND OTHER STATES HE WANTED TO SWAP FOR A FEDERALLY OWNED PARCEL IN THE SOUTHERN CALIFORNIA DESERT OUTSIDE THE DESOLATE TOWN OF NEEDLES BUT THE STATE LANDS COMMISSION CONTROLLED BY MR WILSON'S PARTISAN FOES BLOCKED THE EXCHANGE SO HE COOKED UP A DEAL WITH DEPARTING INTERIOR SECRETARY MANUEL LUJAN TO SELL THE SITE FOR A SUM TO BE PROVIDED BY US ECOLOGY THE COMPANY THAT WOULD OPERATE THE LANDFILL THE USUAL ENVIRONMENTALIST AND NIMBY HOWLS HAVE ACCOMPANIED THE WHOLE PROCESS WITH OBJECTIONS CENTERING ON THE POTENTIAL FOR RADIOACTIVE LEAKAGE THROUGH AN AQUIFER TO THE COLORADO RIVER ABOUT 13 MILES AWAY IT LOOKED HOWEVER AS IF THE PROJECT AT LEAST WOULD BE MOVED A BIG STEP FORWARD THEN CAME TUESDAY'S RULING BY DISTRICT JUDGE MARILYN PATEL IN SAN FRANCISCO JUDGE PATEL A FAMILIAR NAME TO THOSE WHO FOLLOW BENCH WRITS INVOKED A DIFFERENT BASIS THE ENDANGERED SPECIES ACT DESERT TORTOISES YOU SEE THE JUDGE'S INJUNCTION HAS PUT OVER THE FEDERAL SALE TO BRUCE BABBITT'S REIGN AT INTERIOR PROBABLY VICE PRESIDENT GORE AND THE GREENIES WILL WANT TO WEIGH IN FOR THE SAKE OF BALANCE HAZEL O'LEARY AT ENERGY OUGHT TO HAVE A SAY SHE SEEMS TO RECOGNIZE THAT IMPEDING COMMERCE IN THE NAME OF ALL THAT IS GOOD AND PURE SOMETIMES HAS ADVERSE EFFECTS ON REAL PEOPLE SOME OPPONENTS CHARGE THAT BIOTECH IS A COVER FOR USING THE SITE TO CONTAIN THE HOT REMAINS OF DECOMMISSIONED NUCLEAR PLANTS PRESUMABLY PUBLIC OFFICIALS WOULD BE HELD ACCOUNTABLE FOR OBSERVING WHATEVER CONDITIONS ARE LAID DOWN AT THE TIME A SITE IS OPENED MOREOVER FROM THE INTENSITY WITH WHICH THE SCIENTIFICBUSINESS SECTOR HAS SUPPORTED THIS SITING THEY WOULD APPEAR NOT TO THINK THEIR INTERESTS CAN BE MET IN ANOTHER WAY WITHOUT WARD VALLEY NUCLEAR WASTE IS GOING TO HAVE TO MAKE A TREK OF 3000 MILES OR COLLECT ON THE PREMISES OF CALIFORNIA'S LABS AND HOSPITALS MOST OF WHICH ARE NEAR RESIDENTIAL NEIGHBORHOODS IF THE THREAT POSED BY THESE MATERIALS IS ANYTHING LIKE WHAT THE ALARMISTS SAY THOSE TWO OPTIONS WOULD SEEM TO BE ESPECIALLY UNPLEASANT ALTERNATIVES A FINAL OPTION AND ONE THAT THOSE WHO USE NUCLEAR TECHNOLOGY WILL COME TO EVENTUALLY IN ANY CASE IS TO MOVE THEIR FACILITIES TO WHEREVER DISPOSAL CAN BE ARRANGED OR SIMPLY SHUT DOWN OPERATIONS THAT PROMISE LIFESAVING MEDICINE AS WELL AS HIGHVALUE OCCUPATIONS THAT IS NOT WHAT GOVERNOR WILSON WANTS IN CALIFORNIA AND IT IS NOT WHAT PRESIDENT CLINTON MUST SEEK FOR THE NATION 9301220111 930122 FINANCING BUSINESS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SHELF OFFERING OF AS MUCH AS 3 BILLION OF DEBT SECURITIES CHEMICAL SAID THE PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING REDUCING SHORTTERM DEBT 9301220110 930122 GM'S RESULTS COULD EXCEED EXPECTATIONS SOME ANALYSTS EVEN PREDICT SMALL 4THPERIOD PROFIT BEFORE ONETIME ITEMS BY JACQUELINE MITCHELL AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP COULD REPORT BETTERTHANEXPECTED FOURTHQUARTER RESULTS AS COSTCUTTING IN NORTH AMERICA AND STRONG RESULTS OVERSEAS BOLSTER THE BOTTOM LINE ANALYSTS SAY IN RECENT DAYS A FEW ANALYSTS HAVE BEGUN PREDICTING THAT THE NO 1 AUTO MAKER COULD EVEN SHOW A SMALL PROFIT FOR THE QUARTER BEFORE ONETIME CHARGES SOME ANALYSTS ALSO EXPECT GM TO BE PROFITABLE IN THE CURRENT QUARTER AS WELL THE COMPANY'S STOCK HAS JUMPED THIS WEEK FOLLOWING POSITIVE COMMENTS FROM ANALYSTS AND SENIOR COMPANY EXECUTIVES GM COMMON SHARES WERE QUOTED AT 3750 UP 125 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE GM'S RESULTS PROMISE TO BE THE MOST CLOSELY SCRUTINIZED AMONG DETROIT'S BIG THREE AUTO MAKERS AS THEY COME IN THE WAKE OF NOVEMBER'S BOARDROOM COUP THAT SWEPT OUT FORMER CHAIRMAN ROBERT C STEMPEL NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR AND CHAIRMAN JOHN G SMALE HAVE ACCELERATED COSTCUTTING EFFORTS SINCE TAKING CONTROL NOV 2 FORD MOTOR CO HAS ALREADY INDICATED IN A SECURITIES & EXCHANGE COMMISSION FILING THAT IT HAD A FOURTHQUARTER LOSS ANALYSTS EXPECT FORD TO REPORT A DEFICIT OF BETWEEN 248 MILLION OR 50 CENTS A SHARE AND 495 MILLION OR 114 A SHARE THAT WOULD COMPARE WITH A LOSS OF 4756 MILLION OR 103 CENTS A SHARE A YEAR EARLIER CHRYSLER CORP IS EXPECTED TO REPORT NEXT WEEK EARNINGS OF AS MUCH AS 324 MILLION OR 103 A SHARE THE COMPANY WHICH IS PREPARING TO SELL 40 MILLION NEW COMMON SHARES SAID IN AN SEC FILING THAT FOURTHQUARTER NET INCOME WOULD EXCEED 300 MILLION PREDICTIONS FOR GM'S FOURTHQUARTER RESULTS RANGE FROM A SLIM PROFIT TO A LOSS OF AS MUCH AS 296 MILLION OR 44 CENTS A SHARE BEFORE ONETIME CHARGES GM HAD A LOSS OF 247 BILLION OR 425 A SHARE A YEAR EARLIER THE YEAREARLIER RESULTS INCLUDED 282 BILLION IN PRETAX CHARGES FOR PLANT CLOSINGS AND RESTRUCTURINGS ONETIME WRITEOFFS WILL DROP GM INTO THE RED FOR ALL OF 1992 AS WELL THE COMPANY HAD LOSSES OF 9707 MILLION IN THE FIRST NINE MONTHS INCLUDING 7494 MILLION IN SPECIAL CHARGES WHEN IT RELEASES YEAREND RESULTS NEXT MONTH GM IS EXPECTED TO BOOK A NONCASH CHARGE OF AS MUCH AS 24 BILLION TO REFLECT ITS LIABILITY FOR FUTURE RETIREE MEDICAL BENEFITS THE AUTO MAKER ALSO EXPECTS TO TAKE A CHARGE OF ABOUT 300 MILLION RELATED TO LOSSES AT ITS NATIONAL CAR RENTAL SYSTEMS INC AFFILIATE SOME ANALYSTS SPECULATE THAT GM MAY TAKE SOME ADDITIONAL CHARGES GM OFFICIALS SAY ONLY THAT THEY DON'T FORESEE ANY OTHER MAJOR WRITEOFFS WALL STREET'S FOCUS WILL BE ON GM'S OPERATING RESULTS PARTICULARLY IN THE UNPROFITABLE NORTH AMERICAN AUTO OPERATIONS THAT MR SMITH HAS VOWED TO TURN AROUND GM OFFICIALS SAY THE COMPANY'S CAMPAIGN TO CUT PURCHASING COSTS IS PRODUCING GREATERTHANEXPECTED BENEFITS GM'S AUTOMOTIVE COMPONENTS GROUP A DRAG ON EARNINGS IN THE PAST TURNED PROFITABLE IN 1992 SAYS JT BATTENBERG THE GROUP VICE PRESIDENT IN CHARGE OF THOSE OPERATIONS ANOTHER MAJOR SOURCE OF SAVINGS IS A REDUCTION OF CUTPRICE SALES TO RENTAL CAR FLEETS THAT IN THE PAST COST THE COMPANY 1000 A VEHICLE OR MORE ANALYSTS SAY THE PULLBACK FROM FLEET SALES COULD HELP GM SHOW BETTER RESULTS FOR THE QUARTER EVEN THOUGH PRODUCTION VOLUME WAS FLAT WITH A WEAK YEAREARLIER PERIOD ACCORDING TO PAINEWEBBER ANALYST STEPHEN GIRSKY MR GIRSKY EXPECTS GM TO NARROW ITS FOURTHQUARTER LOSS TO 370 MILLION OR 50 CENTS A SHARE WENDY BEALE NEEDHAM SMITH BARNEY HARRIS UPHAM & CO'S AUTO ANALYST SAYS SHE EXPECTS THE COMPANY TO POST A FOURTHQUARTER LOSS OF 120 MILLION OR 39 CENTS A SHARE BUT SHE ADDED GM SHOULD BE PROFITABLE IN THE FIRST QUARTER YOU CAN'T LAY OFF AS MANY PEOPLE AS GM DID OR CUT FLEET SALES AS MUCH AS GM DID AND NOT START TO SEE ANY RESULTS MS NEEDHAM SAYS ALL THE PAIN THEY'VE GONE THROUGH SHOULD START TO FLOW THROUGH AS BLACK INK ANOTHER WILD CARD IS THE COMPANY'S OVERSEAS OPERATIONS GM EUROPE PROMISES TO BE STRONGLY PROFITABLE AGAIN COMPANY OFFICIALS SAY THE EUROPEAN UNIT RECENTLY REPORTED ITS EIGHTH CONSECUTIVE YEAR OF RECORD SALES AND A 34 GAIN IN ITS SHARE OF THE EUROPEAN CAR MARKET LATIN AMERICAN OPERATIONS WERE IN THE BLACK TOO OFFICIALS SAID AT A RECENT ANALYSTS MEETING DAVID HEALY SG WARBURG & CO'S AUTO ANALYST SAYS EUROPE COULD BOOST GM TO BREAKEVEN RESULTS FOR THE FOURTH QUARTER BEFORE ONETIME CHARGES AND PREFERRED DIVIDEND PAYMENTS FOR FORD HOWEVER EUROPE IS A TROUBLE SPOT ANALYSTS SAY THERE ARE SOME SIGNS THAT THE UK MARKET IS TURNING AROUND MR HEALY SAYS NOT THAT FORD WILL MAKE MONEY IN 1993 BUT THE LOSSES WILL BE DRAMATICALLY SMALLER ON FORD'S HOME TURF THE NO 2 AUTO MAKER PAID A HEFTY PRICE FOR ITS SUBSTANTIAL MARKET SHARE GAINS IN 1992 ANALYSTS ESTIMATE FORD PAID 115 MILLION TO OUST HONDA MOTOR CO'S ACCORD AS THE BESTSELLING PASSENGER CAR IN THE US YESTERDAY THE COMPANY ANNOUNCED A PRICE INCREASE IN THE US TO BOOST PROFITS CHRYSLER MEANWHILE IS RIDING SUCCESSFUL LAUNCHES OF TWO NEW PRODUCTS THE REDESIGNED JEEP GRAND CHEROKEE SPORTUTILITY VEHICLE AND A NEW GENERATION OF MIDSIZE FAMILY SEDANS THE SOCALLED LH CARS AND CHRYSLER'S MINIVANS CONTINUE TO DOMINATE SALES IN THAT MARKET IN 1991'S FOURTH QUARTER CHRYSLER EARNED 97 MILLION OR 33 CENTS A SHARE INCLUDING GAINS OF 127 MILLION ON THE SALE OF ASSETS 9301220109 930122 EXSAHLEN OFFICIALS PARTNERS ARE INDICTED BY 2 US GRAND JURIES FORT LAUDERDALE FLA FORMER EXECUTIVES AND PARTNERS OF SAHLEN & ASSOCIATES INC WERE INDICTED BY TWO FEDERAL GRAND JURIES FOR VARIOUS TYPES OF FRAUD IN CONNECTION WITH AN ALLEGED FIVEYEAR SCHEME TO MISREPRESENT THE DEFUNCT SOUTH FLORIDA DETECTIVE AGENCY'S FINANCIAL CONDITION IN FORT LAUDERDALE FLA HAROLD SAHLEN JR AARIF DAHOD NELSON LOGAL THEODORE LEINWEBBER PAULA FIREBAUGH TONY DAVIS AND JOHN KUCZEK WERE CHARGED IN A 28COUNT INDICTMENT WITH BANK FRAUD MAIL FRAUD AND SECURITIES FRAUD HAVING ALLEGEDLY BILKED THOUSANDS OF PUBLIC SHAREHOLDERS IN THE ONCE HIGHFLYING COMPANY IN LOS ANGELES MR SAHLEN MR DAHOD AND MR LOGAL WERE CHARGED WITH 14 COUNTS OF FRAUD AND FALSE STATEMENTS IN OBTAINING A 40 MILLION LOAN IN 1989 FROM WELLS FARGO & CO A SAN FRANCISCO BANK HOLDING COMPANY A FOURTH PERSON LAWRENCE BODDEN WAS CHARGED WITH ONE COUNT OF BANK FRAUD PLUS ONE COUNT OF SECURITIES FRAUD IN THE FLORIDA CASE TO WHICH HE HAS AGREED TO PLEAD GUILTY A WELLS FARGO SPOKESWOMAN SAID THE BANK HAD ACCOUNTED FOR ITS LOSSES ON THE LOAN SEVERAL YEARS AGO AND DECLINED FURTHER COMMENT ACCORDING TO THE INDICTMENTS THE DEFENDANTS CREATED AN ILLUSION OF SUCCESS BY INFLATING REVENUE USING PHONY ACCOUNTS RECEIVABLE RECORDS BY FUNDING PAYROLL AND OTHER EXPENSES THROUGH AN ELABORATE CHECK KITING SCHEME AND BY FILING FALSE FINANCIAL STATEMENTS BETWEEN 1984 AND 1989 THE INDICTMENTS FOLLOW A SERIES OF CIVIL LAWSUITS FILED AGAINST MANY OF THE SAME PEOPLE BY THE BANK THE SECURITIES AND EXCHANGE COMMISSION AND FORMER SAHLEN INVESTORS FOR ALLEGED FRAUDULENT BUSINESS PRACTICES AND VIOLATIONS OF SECURITIES LAWS AN ATTORNEY FOR MR SAHLEN AND MR BODDEN DECLINED TO COMMENT JON SALE AN ATTORNEY FOR MR LOGAL A FORMER VICE PRESIDENT AT SAHLEN SAID OUR POSITION IS THAT HE WAS NOT INVOLVED IN ANY IMPROPRIETY AT SAHLEN AND HE IS LOOKING FORWARD TO AN OPPORTUNITY TO CLEAR HIS NAME ATTEMPTS TO REACH THE OTHER DEFENDANTS OR THEIR ATTORNEYS WERE UNSUCCESSFUL 9301220108 930122 BUSINESS BRIEF GEORGIAPACIFIC POSTS 4THPERIOD PROFIT BUT OPERATING RESULTS VARIED WIDELY ATLANTA GEORGIAPACIFIC CORP POSTED FOURTHQUARTER EARNINGS OF 104 MILLION OR 121 A SHARE COMPARED WITH A YEAREARLIER LOSS THE FIGURES HOWEVER REFLECTED WIDELY VARIED OPERATING RESULTS WITH THE COMPANY'S WOOD BUSINESS REPORTING RECORD FOURTHQUARTER PROFIT AND THE PAPER BUSINESS FALLING INTO THE RED FOR THE FIRST TIME IN AT LEAST A DECADE IT APPEARS THAT IT WASN'T A PARTICULARLY GOOD QUARTER SAID BRUCE KIRK AN ANALYST WITH SG WARBURG & CO WHO SAID HE EXPECTED BETTER OPERATING RESULTS IN LIGHT OF SOARING LUMBER PRICES THE FOURTHQUARTER RESULTS WHICH COMPARE WITH A LOSS OF 67 MILLION OR 78 CENTS A SHARE LAST YEAR WERE SKEWED BY UNUSUAL ITEMS INCLUDING A 231 MILLION INCOMETAX BENEFIT BEFORE EXTRAORDINARY ITEMS AND TAXES GEORGIAPACIFIC HAD A 118 MILLION QUARTERLY LOSS COMPARED WITH A 66 MILLION LOSS THE PREVIOUS YEAR EXCLUDING 1991 ASSET SALES SALES ROSE 42 TO 291 BILLION FROM 279 BILLION THE PREVIOUS YEAR THE COMPANY SAID THE LARGE TAX BENEFIT AROSE BECAUSE GEORGIAPACIFIC'S FULLYEAR PRETAX PROFITS WERE LOWER THAN THE COMPANY HAD EXPECTED AFTER NINE MONTHS WHEN IT LAST RESERVED FOR TAXES AT THE TIME THE COMPANY SAID PAPER PRICES SEEMED TO BE STABILIZING AFTER A LONG SLIDE BUT PULP AND PAPER PRICES DROPPED AGAIN IN THE FOURTH QUARTER AS THE INDUSTRY'S EXCESS CAPACITY GREW WORSE THE SEGMENT AFTER SEEING REVENUE FALL 5 IN THE QUARTER FROM THE PREVIOUS YEAR SHOWED A 71 MILLION OPERATING LOSS INCLUDING 44 MILLION IN SPECIAL CHARGES THE RESULTS WERE SOMEWHAT WORSE THAN ANALYSTS HAD EXPECTED AND COMPARED WITH AN OPERATING PROFIT OF 49 MILLION A YEAR EARLIER THE COMPANY'S BUILDINGPRODUCTS DIVISION MEANWHILE BENEFITED FROM HIGHER PRICES LARGELY THE RESULT OF ENVIRONMENTAL RESTRICTIONS THAT CURTAILED LOGGING IN THE PACIFIC NORTHWEST GEORGIAPACIFIC'S TIMBER IS MOSTLY IN THE SOUTHEAST THE BUILDINGPRODUCTS DIVISION HAD OPERATING PROFITS OF 691 MILLION IN THE QUARTER COMPARED WITH 344 MILLION IN THE SAME QUARTER IN 1991 FOR THE FULL YEAR GEORGIAPACIFIC HAD A NET LOSS OF 124 MILLION OR 143 A SHARE THE 1991 LOSS WAS 142 MILLION OR 165 A SHARE WITHOUT ASSET SALES THE 1991 LOSS WAS 214 MILLION OR 249 A SHARE SALES ROSE 28 TO 1185 BILLION FROM 1152 BILLION THE PREVIOUS YEAR 9301220107 930122 AMEX TO SET SPIDERS' ON SMALL INVESTORS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE AMERICAN STOCK EXCHANGE IS EXPECTED TO UNVEIL AS EARLY AS TODAY A NEW INVESTMENT THAT ALLOWS SMALL INVESTORS TO TRACK THE PERFORMANCE OF THE STANDARD & POOR'S 500STOCK INDEX THE SPIDER OR STANDARD & POOR'S DEPOSITARY RECEIPT CAN BE BOUGHT AND SOLD ON THE AMEX LIKE A COMMON STOCK BUT IT LOOKS LIKE AN INDEX FUND THESE POPULAR FUNDS OFFERED BY SUCH BIG MUTUAL FUND COMPANIES AS VANGUARD GROUP INC AND FIDELITY INVESTMENTS PROMISE TO MATCH THE INVESTMENT RETURNS OF THE S&P 500 INDEXES OR OTHER MARKET AVERAGES WITHOUT HIGH MANAGEMENT FEES AND TRADING COSTS SPIDERS ARE THE AMEX'S LATEST EFFORT TO WIN OVER SMALL INVESTORS WHO ARE FLOCKING TO STOCK INDEX FUNDS EACH SPIDER REPRESENTS AN INTEREST IN A TRUST HOLDING SHARES OF THE STOCKS IN THE BENCHMARK S&P 500 INDEX BUT SPIDERS ARE MAKING THEIR DEBUT AT A TIME WHEN SOME STOCK MARKET STRATEGISTS ARE CLAIMING THAT INDEXING MAY NOT BE SUCH A HOT IDEA IN YEARS WHEN STOCKS ADVANCE BROADLY INDEX FUNDS ARE VERY APPEALING BECAUSE THEY OFFER A LOWCOST WAY TO PLAY THE STOCK MARKET AND THEY SHIELD INVESTORS FROM THE PITFALLS OF STOCK PICKING BUT WITH CURRENT MARKET CONDITIONS SOME STRATEGISTS SAY THE STOCK AVERAGES MAY TURN IN A HOHUM PERFORMANCE OR EVEN LANGUISH THIS YEAR IN SUCH A SITUATION INVESTORS IN ACTIVELY MANAGED FUNDS COULD FARE BETTER THAN THOSE IN INDEX FUNDS AS THE LEADERSHIP OF STOCKS ON WALL STREET IS RECAST AND AS ANALYSTS TRY AND ANTICIPATE WHAT PORTIONS OF THE ECONOMY WILL OUTPERFORM ON AN EARNINGS BASIS INVESTORS ARE GOING TO NEED ACTIVE MANAGEMENT RATHER THAN INDEXING SAYS BOB SMITH A TRADER AT JANNEY MONTGOMERY SCOTT IN PHILADELPHIA BUT THAT WILL BE TRUE ONLY IF THE FUND MANAGERS ARE ABOVEAVERAGE STOCK PICKERS AND STUDIES SHOW THAT MANY MONEY MANAGERS UNDERPERFORM MARKET AVERAGES GERALD KUSCHUK SENIOR VICE PRESIDENT AT PRUDENTIAL SECURITIES SAYS SPIDERS ARE A GREAT ASSET ALLOCATION PRODUCT AND ARE PARTICULARLY APPEALING IN VOLATILE MARKET CONDITIONS DURING A MORNING WHEN THE DOW WAS DOWN 100 POINTS IF YOU HAD SPIDERS YOU COULD GET INTO THE MARKET WHEN IT WAS DEPRESSED SAYS MR KUSCHUK THE SECURITIES AND EXCHANGE COMMISSION IS EXPECTED TO APPROVE THE SPIDERS TODAY IF SO THEY ARE LIKELY TO START TRADING ON THE AMEX NEXT FRIDAY EACH SPIDER WILL TRADE AT ANY MOMENT AT ABOUT ONETENTH THE VALUE OF THE S&P 500 BASED ON YESTERDAY'S CLOSING PRICE A SPIDER WOULD COST 4353 DIVIDENDS PAID ON THE S&P 500 STOCKS WOULD BE PASSED TO THE SPIDER HOLDER MINUS A 020 FEE IVERS RILEY SENIOR EXECUTIVE VICE PRESIDENT OF THE AMEX DECLINED TO COMMENT ON SPIDERS BECAUSE THE EXCHANGE'S PRODUCT IS STILL IN REGISTRATION WITH THE SEC HOWEVER HE SAID SPIDERS REPRESENT THE FIRST IN WHAT WE BELIEVE COULD BE A LARGE FAMILY OF A WHOLE NEW CATEGORY OF SECURITIES PEOPLE FAMILIAR WITH THE AMEX SAY THAT IF SPIDERS ARE SUCCESSFUL THE EXCHANGE PLANS TO LAUNCH SIMILARLY STRUCTURED TRUSTS THAT ARE DESIGNED TO TRACK THE PERFORMANCE OF OTHER US AND INTERNATIONAL STOCK INDEXES BUT BEFORE THE AMEX CAN START ROLLING OUT THESE NEW PRODUCTS IT'S GOING TO HAVE TO GET INVESTORS TRADING SPIDERS DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY & CO SAYS THERE ARE A COUPLE OF MITIGATING CIRCUMSTANCES THIS YEAR THAT COULD WORK AGAINST INVESTORS IN INDEX PRODUCTS THE MOST IMPORTANT ONE HE SAYS IS THAT THE STOCK MARKET HAS ALREADY RACKED UP BIG GAINS AND HAS LITTLE ROOM TO MOVE SIGNIFICANTLY HIGHER WE ARE NOT EARLY IN THE GAME MR JARRETT SAYS MY S&P TARGET OVER THE NEXT FEW MONTHS IS 450 TO 460 WITH THE S&P 500 AT 43549 YESTERDAY THAT'S NOT A LOT OF APPRECIATION HE SAYS MOREOVER MR JARRETT SAYS INVESTORS IN S&P 500 INDEX PRODUCTS COULD MISS OUT ON SOME CHANGING TRENDS IN THE MARKETPLACE FROM WHERE I SIT THE MARKET LEADERSHIP IN THE NEXT THREE TO FIVE YEARS IS GOING TO BE IN THE SMALL AND MIDCAP STOCKS SAYS MR JARRETT THE S&P 500 IS DOMINATED BY LARGE STOCKS BUT IF INDEX PRODUCTS AREN'T THE PLACE TO BE THIS YEAR SMALL INVESTORS HAVEN'T FIGURED IT OUT YET ACCORDING TO AMG DATA SERVICES STOCK INDEX FUNDS SWELLED TO 131 BILLION AT THE END OF LAST YEAR UP FROM 81 BILLION AT THE START OF 1992 ALREADY THIS MONTH INVESTORS HAVE PLOWED AN ADDITIONAL 400 MILLION INTO STOCK INDEX FUNDS THE BIG DIFFERENCE BETWEEN AN INDEX FUND AND SPIDERS IS THAT AN INVESTOR IN SPIDERS CAN BUY OR SELL THEIR INTERESTS IN THE TRUST WHENEVER THE AMEX IS OPEN MUTUAL FUND INVESTORS BY CONTRAST MUST CASH OUT OR BUY INTO A FUND AT EACH DAY'S CLOSING PRICE SO IF S&P 500 STOCKS PLUNGE DURING THE DAY AN INVESTOR IN AN INDEX FUND IS FORCED TO CASH OUT AT A PRICE THAT REFLECTS THE ENTIRE DAY'S DROP HOWEVER UNLIKE INDEX FUNDS SPIDERS TRADE IN THE MARKETPLACE SO INVESTORS COULD WIND UP BUYING OR SELLING THEM AT A SMALL PREMIUM OR DISCOUNT TO THE VALUE OF THE UNDERLYING BASKET OF STOCKS THAT THEY REPRESENT BUT PEOPLE FAMILIAR WITH SPIDERS SAY THE AMEX HAS DESIGNED THEM SO THAT ARBITRAGERS BY BUYING AND SELLING SPIDERS AGAINST THE UNDERLYING STOCKS WILL KEEP SUCH DISTORTIONS TO A MINIMUM RIGHT NOW INVESTORS CAN BUY BOTH FUTURES AND OPTIONS ON THE S&P 500 AND OTHER STOCKMARKET INDEXES BUT FUTURES AND OPTIONS EXPIRE IN WEEKS OR MONTHS OR YEARS SPIDERS DON'T INSTEAD INVESTORS WILL GET TO PARTICIPATE IN THE S&P 500 FOR 25 YEARS WHEN THE UNDERLYING UNIT INVESTMENT TRUST WILL EXPIRE IN LATE 1991 THE NEW YORK STOCK EXCHANGE HAD TO SUSPEND ITS EXCHANGE STOCK PORTFOLIOS ESPS AN S&P500 STOCK BASKET TRADING PRODUCT BECAUSE OF LACK OF INTEREST BY INSTITUTIONAL INVESTORS PEOPLE FAMILIAR WITH THE AMEX'S SPIDERS SAY THEY ARE NOTHING LIKE THE BIG BOARD'S ESPS FOR ONE THING INVESTORS HAD TO PLUNK DOWN A MINIMUM OF 5 MILLION TO BUY ESPS EACH SPDR PRONOUNCED SPIDER OR STANDARD & POOR'S 500STOCK INDEX DEPOSITORY RECEIPT REPRESENTS AN INTEREST IN A TRUST HOLDING SHARES OF THE STOCKS IN THE S&P 500 TO ALLOW SMALL INVESTORS TO TRACK THE PERFORMANCE OF THE S&P 500 EACH SPDR IS EXPECTED TO TRADE AT ABOUT 1/10 THE MOMENTTOMOMENT VALUE OF THE S&P 500 BASED ON THURSDAY'S CLOSING PRICE EACH SPDR WOULD BE VALUED AT 4353 9301220106 930122 LEISURE & ARTS ON SPORTS GETTING TRACK ON TRACK BY FREDERICK C KLEIN THE ORGANIZATION THAT OVERSEES TRACK AND FIELD IN THIS NATION RECENTLY CHANGED ITS NAME FROM THE ATHLETICS CONGRESS OR TAC FOR SHORT TO USA TRACK & FIELD FOR LONG OR SHORT AND JUST ABOUT EVERYONE THINKS IT'S A GOOD IDEA THE NEW NAME IS EXPLICIT AND GETTING IN THE BIG THREE INITIALS SHOULDN'T HURT EITHER AND THERE'S THE ADDITIONAL ADVANTAGE OF ELIMINATING A NEGATIVE PEOPLE ASSOCIATE TACKS WITH THINGS THAT ARE SHARP AND UNPLEASANT ONE ACTIVIST IN THE SPORT REMARKS POINTEDLY OTHER T&F BUFFS TAKE EXCEPTION TO PART OF THAT STATEMENT THE TROUBLE WITH TAC THEY ASSERT IS THAT IT WAS DULL NOT SHARP AND UNTIL PROVEN OTHERWISE THE SAME GENERAL RAP SHOULD ATTACH TO THE GROUP UNDER ANY MONIKER THE SPECIFIC INDICTMENT AGAINST TACUSA TRACK & FIELD IS THAT IT'S NEVER CAPITALIZED ON THE ENTHUSIASM FOR RUNNING JUMPING AND THROWING STIRRED EVERY FOUR YEARS BY THE OLYMPIC GAMES BETWEEN OLYMPICS TRACK AND FIELD ALL BUT DISAPPEARS FROM PUBLIC VIEW SUBMERGED IN THE WAVES MADE BY ITS MANY RIVALS ON THE SPORTS SCENE AND WHEN IT DOES SURFACE IT'S USUALLY FOR SOMETHING UNPLEASANT LIKE A DRUGTESTING DISPUTE OR ANOTHER INTRAMURAL FLAP OFTEN THE BARBS HAVE BEEN PERSONAL AND THE PERSON AT WHOM MOST HAVE BEEN DIRECTED IS OLLAN CASSELL THE ORGANIZATION'S LONGTIME EXECUTIVE DIRECTOR TO HEAR SOME TELL IT THE WHITEHAIRED 55YEAROLD WHO WON A GOLD MEDAL WITH THE US 4BY400METER RELAY TEAM AT THE 1964 OLYMPICS IN TOKYO HAS RUN AN INSULAR REGIME ONE THAT'S MORE CONCERNED WITH ITS OWN SURVIVAL THAN WITH OUTSIDE MATTERS OLLAN WANTS TO LIVE IN THE PAST RULING LIKE A KING SCARED OF LOSING HIS EMPIRE WRITES CARL LEWIS THE MULTIMEDALED OLYMPIC SPRINT KING IN INSIDE TRACK HIS 1990 AUTOBIOGRAPHY HE ACTS LIKE ANY CHANGE WILL BRING HIM LESS POWER WHICH IT SHOULD HE'S NOT WILLING TO ACCEPT SUGGESTIONS FROM OUTSIDE HIS LITTLE CIRCLE OF FRIENDS NO MATTER HOW REASONABLE THE ADVICE MAY BE AS A RESULT OUR SPORT IS FAILING MISERABLY IN THE US JULIA EMMONS A TRACKCLUB AND MEET DIRECTOR IN ATLANTA AND A USA TRACK & FIELD EXECUTIVEBOARD MEMBER IS MORE SUCCINCT FOR QUITE A WHILE THE ATTITUDE OF THE GROUP'S LEADERSHIP WAS THIS IS US TAKE IT OR LEAVE IT' AND A LOT OF PEOPLE FOUND IT EASY TO LEAVE SHE SAYS BUT ALONG WITH THE NAME CHANGE HAS COME AN AGENDA TO PROMOTE TRACK AND FIELD AND PERHAPS SURPRISINGLY THE MAN PICKED TO PUSH IT WAS CASSELL IN SEPTEMBER HE WAS GIVEN A NEW TWOYEAR CONTRACT BY THE TAC BOARD EXTENDING INTO 1995 HIS HOLD ON AN OFFICE HE'S OCCUPIED SINCE THE AMATEUR ATHLETIC UNION DAYS OF 1970 PART OF THE EFFORT INVOLVES COURTING THE MEDIA AN ACTIVITY THAT HASN'T ALWAYS MADE CASSELL COMFORTABLE IN ONE MEMORABLE EPISODE LAST SPRING HE INVITED THE TV CREWMEN VISITING TAC'S INDIANAPOLIS HEADQUARTERS TO EAT THEIR CAMERA'S CONTENTS WHEN THEIR QUESTIONS DISPLEASED HIM BUT LAST WEEK HE WAS AVAILABLE TO ALL AND SUNDRY AND SMILED BENIGNLY WHEN THE SUBJECT OF DISSENT WITHIN HIS ORGANIZATION AROSE WE'RE A VOLUNTEER GROUP AND DEMOCRATIC SO IT'S NATURAL THAT A LOT OF PEOPLE THINK THEY KNOW WHAT'S BEST HE SAID HE ADDED HAVING DETRACTORS SEEMS TO COME WITH THE TERRITORY IN SPORTS ADMINISTRATION JUST ASK FAY VINCENT WHEN HE GOT DOWN TO CASES THOUGH CASSELL ESPOUSED A PROGRAM SIMILAR TO ONE SET DOWN LAST YEAR AT SOMETHING CALLED THE MEET OF THE MINDS A BROADBASED ASSEMBLAGE THAT MET IN BEAVERTON ORE TO PONDER TRACK AND FIELD'S NEARTERM FUTURE THE PLAN INCLUDES SEEKING MORE DOMESTIC OUTLETS FOR A SPORT THAT'S BECOME INCREASINGLY EUROPECENTERED GETTING MORE AND BETTER TV COVERAGE FOR SAME AND SUCH RESTRUCTURING MOVES AS HAVING THE ATHLETES COMPETE FOR PRIZE MONEY BASED ON PERFORMANCE INSTEAD OF ON PREARRANGED GUARANTEES AND DOING AWAY WITH THE SUPERVISED TRUST FUNDS THROUGH WHICH THE ATHLETES MUST FUNNEL THEIR EARNINGS WE'D LIKE TO REVIVE INDOOR TRACK BY PUTTING IT IN THE BIG DOMED STADIUMS AROUND THE COUNTRY PLACES THAT CAN GENERATE THE KIND OF REVENUES YOU NEED TO ATTRACT THE BEST ATHLETES SAID CASSELL TO BUILD UP INTEREST WE'LL EMPHASIZE HEADTOHEAD COMPETITION BETWEEN TOP PERFORMERS RATHER THAN THE PURSUIT OF RECORDS WHICH TEND TO BE UNPREDICTABLE WE'D LIKE TO PUT THE PRIZE MONEY UP FRONT LIKE IN GOLF WHERE IT WOULD ADD TO THE DRAMA OF THE EVENT DOING AWAY WITH THE TRUST FUNDS WOULD HELP THAT BY MAKING THE SPORT MORE FRANKLY PROFESSIONAL WE'D LIKE TO EXPAND THE OUTDOOR SEASON TOO ADDING MORE US DATES TO THE MOBIL GRAND PRIX CIRCUIT CASSELL SAID THAT USA TRACK & FIELD ALREADY HAS MOVED TOWARD IMPROVING ITS TELEVISION EXPOSURE THROUGH A PACT WITH TWI THE TELEVISION ARM OF THE CLEVELANDBASED INTERNATIONAL MANAGEMENT GROUP INSTEAD OF MERELY SELLING TV RIGHTS THE NEW AGREEMENT MAKES THE PARTNERSHIP ITS OWN PRODUCER GIVING IT MORE CONTROL OVER WHERE AND WHEN EVENTS WILL BE AIRED AND OVER THEIR FORMATS BUT CASSELL WENT ON TO SAY THAT IMPLEMENTING OTHER PARTS OF THE PLAN IS BEYOND USA TRACK & FIELD'S SOLE CONTROL BECAUSE THEY REQUIRE APPROVAL OF THE INTERNATIONAL AMATEUR ATHLETICS FEDERATION THE SPORT'S INTERNATIONAL GOVERNING BODY WE'RE JUST ONE VOTE OF 206 HE SAID OF HIS GROUP'S STATUS IN THE IAAF CHOOSING TO OVERLOOK THE CLOUT THAT US TV DOLLARS BRING TO ANY INTERNATIONAL SPORTS FORUM HE NOTES THAT THE SUCCESSFUL US LAWSUIT AGAINST THE IAAF BY BUTCH REYNOLDS IN WHICH THE QUARTERMILER CHARGED THE LONDONBASED OUTFIT WITH BOTCHING A DRUG TEST THAT DISQUALIFIED HIM FROM THE 1992 OLYMPICS HAS COMPLICATED USA TRACK & FIELD'S POSITION IN THAT BODY UNRESOLVED TOO ARE THE STANCES OF SOME US TRACK STARS TOWARD THE REVITALIZATION PROGRAM SUCH 1992 OLYMPIC HEROES AS LEWIS HURLER KEVIN YOUNG AND QUARTERMILER QUINCY WATTS SAY THEY WON'T COMPETE MUCH INDOORS THIS SEASON IF AT ALL I WON'T SAY I WISH TRACK ATHLETES HAD A UNION CASSELL SAID BUT I'D LIKE TO SEE SOME SORT OF GROUP EMERGE THAT WE COULD WORK WITH TO ENSURE PARTICIPATION IN MEETS WHILE THE PROSPECT OF ROSY PROSPERITY STILL MAY BE DISTANT FOR TRACK SOME THINK THAT IT'S BEEN BROUGHT A MITE CLOSER SAYS BOARD MEMBER EMMONS YOU CAN'T CHANGE UNTIL THE NEED TO CHANGE IS RECOGNIZED AND I THINK WE SEE THAT NOW 9301220105 930122 AUTOS FORD LIFTS PRICES AS IT INCREASES MARKET SHARE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH HAVING THE BESTSELLING CAR IN AMERICA APPARENTLY ENCOURAGES SOME PEOPLE TO RAISE PRICES FORD MOTOR CO WHICH RECENTLY ANNOUNCED THAT ITS TAURUS OVERTOOK THE HONDA ACCORD AS THE TOP CAR IS TAKING THE UNUSUAL STEP OF RAISING PRICES ON MOST OF ITS 1993 MODELS IN THE MIDDLE OF ITS MODEL YEAR THE PRICE INCREASES COME AS FORD GAINS MARKET SHARE IN THE US BUT CONTINUES TO POST LOSSES IT ALSO COINCIDES WITH A REQUEST BY FORD GENERAL MOTORS CORP AND CHRYSLER CORP FOR THE FLEDGLING CLINTON ADMINISTRATION TO BOOST TARIFFS ON JAPANESE MINIVANS AND TAKE OTHER MEASURES TO RESTRICT IMPORTS A SPOKESMAN SAID THE PRICE INCREASES SHOULDN'T HURT FORD'S CASE FOR HIGHER TARIFFS AND RELATED MEASURES BECAUSE ONE OF THE MOST IMPORTANT CONTRIBUTIONS WE CAN MAKE TO THE AMERICAN ECONOMY IS TO RUN A SOUND AND SOLVENT BUSINESS FORD SAID THE PRICE INCREASES RANGE FROM A HIGH OF 17 OR 286 FOR ITS MERCURY VILLAGER MINIVAN TO A LOW OF 02 OR 38 FOR ITS HOTSELLING SPORT UTILITY VEHICLE EXPLORER THE BASE PRICE OF THE LEASTEQUIPPED TAURUS SEDAN WILL INCREASE BY 109 OR 07 TO 15600 AND THE AEROSTAR MINIVAN'S BASE PRICE WILL INCREASE BY 100 ALSO 07 TO 14321 CHRYSLER SAID IT DOESN'T PLAN TO FOLLOW FORD'S MOVE AND A SPOKESMAN FOR GM WHICH YESTERDAY CUT PRICES ON TWO MODELS IN ITS STRUGGLING OLDSMOBILE LINE SAID THE COMPANY IS CERTAINLY INTERESTED IN THE IMPLICATIONS OF FORD'S MOVE BUT HADN'T ANY IMMEDIATE REACTION JUST A FEW YEARS AGO FORD WOULDN'T HAVE DREAMED OF BOOSTING PRICES UNLESS IT FOLLOWED GM BUT YESTERDAY'S PRICE INCREASE UNDERSCORES THE COMPANY'S INCREASING ASSERTIVENESS IN LIGHT OF ITS SUCCESS IN THE MARKETPLACE FORD'S SHARE OF US CAR SALES SPURTED LAST YEAR TO 216 FROM 199 IN 1991 BUT THE COMPANY WHICH HASN'T YET REPORTED ITS 1992 EARNINGS HAS INDICATED IT HAD A LOSS IN THE SECOND HALF FORD SAID THE PRICE INCREASES ARE NEEDED TO OFFSET COST INCREASES ASSOCIATED WITH PRODUCTION AND OPERATIONS FORD IS TRYING TO TAKE ADVANTAGE OF STRONGER DEMAND TO INCREASE PROFITABILITY AND IF THE MARKETPLACE REACTS ADVERSELY WHAT THE HECK THEY CAN ALWAYS RAISE INCENTIVES SAID RONALD GLANTZ AN ANALYST WITH DEAN WITTER IN SAN FRANCISCO PRICE INCREASES IN THE MIDDLE OF A MODEL YEAR HAVE BEEN COMMON IN RECENT YEARS FOR JAPANESE AUTO MAKERS WHO HAVE TAKEN THEM TO RESTORE PROFIT MARGINS DEPRESSED BY THE RISING VALUE OF THE YEN FORD DIDN'T TAKE A MIDYEAR PRICE INCREASE LAST YEAR ALTHOUGH IT HAS IN SOME PREVIOUS YEARS BEARING IN MIND THAT WE BARELY RAISED OUR PRICES AT THE FIRST OF THE MODEL YEAR AND THAT WE DIDN'T RAISE THEM AT ALL AT MIDYEAR 1992 WE BELIEVE THIS IS A VERY RESPONSIBLE ACTION FORD SAID THE COMPANY SAID ITS PRICE INCREASE AVERAGED ONLY 84 A VEHICLE OR 04 OVER THE BASE PRICE FOR THE 1993 MODELS LAUNCHED LAST FALL NOT ALL FORD CARS ARE GETTING PRICE INCREASES THE COMPANY LEFT UNCHANGED THE PRICE OF ITS FESTIVA ENTRYLEVEL CAR AND ALSO THE ESCORT SUBCOMPACT THAT'S SOLD IN FOUR DIFFERENT VERSIONS ALL EQUIPPED WITH AIR CONDITIONING AND AMFM RADIO FOR 10499 WITH GASOLINE PRICES LOW AUTO MAKERS NEED TO ENTICE CONSUMERS TO BUY SUCH CARS AS ESCORT AND FESTIVA SO THE COMPANIES CAN MEET FEDERAL FUELECONOMY REGULATIONS ALSO FORD ISN'T RAISING THE 12845 BASE PRICE ON ITS FORD PROBE WHICH HASN'T MET SALES EXPECTATIONS SINCE IT WAS RESTYLED LAST SUMMER AS OF DEC 31 FORD HAD A 195DAY SUPPLY OF THE COUPE THREE TIMES THE DESIRED LEVEL ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE LETTER WHILE THE SPORTY PROBE GT WHICH STARTS AT 15174 IS SELLING STRONGLY THE BASE PROBE HAS BEEN A DUD SO FAR IN THE MARKETPLACE FORD IS TRYING TO FIX THAT IT JUST BEGAN BUILDING A SPECIAL SPORT EDITION VERSION OF THE BASE PROBE THAT INCLUDES A FRONT END LIKE THE PROBE GT AND BIG ALUMINUM WHEELS CHRISTOPHER CEDERGREN AN ANALYST WITH THE AUTOPACIFIC GROUP IN SANTA ANA CALIF ESTIMATES THAT FORD WILL STILL MANAGE TO SELL BETWEEN 85000 AND 100000 PROBES THIS YEAR A BIG INCREASE FROM THE 63659 PROBES SOLD LAST YEAR DEALERS OFTEN CRITICIZE PRICE INCREASES BY MANUFACTURERS BUT SOME DIDN'T THINK THAT YESTERDAY'S INCREASE WOULD HURT THEIR BUSINESS I DON'T BELIEVE THAT THIS IS GOING TO AFFECT OUR SALES SAID KEN CORCH A GENERAL SALES MANAGER FOR HALDEMAN FORD IN KUTZTOWN PA WE ARE LOOKING FORWARD TO A REAL GOOD SPRING MARKET 9301220104 930122 POTOMAC WATCH WASHINGTON HOPES IT'S FOUND A REDEEMER BY PAUL A GIGOT PRESIDENT CLINTON'S INAUGURAL ADDRESS MAY DISPEL ANY NOTION THAT HE IS A MODERATE ASIDE FROM ITS ADMIRABLE BREVITY THERE WAS NOTHING MODERATE ABOUT IT OUR NEW PRESIDENT DECLARED HIS PURPOSE TO BE NOTHING SHORT OF RESTORING AN ACTIVIST FEDERAL GOVERNMENT TO ITS KENNEDYESQUE LUSTER WE MUST HAVE THE VISION AND COURAGE TO REINVENT AMERICA MR CLINTON SAID HE VOWED TO ONCE AGAIN MAKE OUR GOVERNMENT A PLACE FOR WHAT FRANKLIN ROOSEVELT CALLED BOLD PERSISTENT EXPERIMENTATION' A GOVERNMENT FOR OUR TOMORROWS SUCH IMMODEST PUBLIC PURPOSES HAVEN'T RUNG FROM A PRESIDENTIAL PODIUM HERE IN 30 YEARS AND MAY MISJUDGE THE NATIONAL MOOD CERTAINLY SUCH GRAND AMBITION EXPLAINS WHY MR CLINTON'S ARRIVAL WAS HERALDED BY WASHINGTON LIKE NO OTHER RECENT PRESIDENT'S RONALD REAGAN CAME AS AN INSURGENT INTENT ON CURBING THE CITY AND ITS PURPOSES JIMMY CARTER WAS A POPULIST AND MORALIST WHO MADE THE ESTABLISHMENT EDGY GEORGE BUSH WAS PART OF THAT ESTABLISHMENT BUT WAS SUSPECT AS MR REAGAN'S HEIR ALL THREE GOT GENEROUS BUT WARY WELCOMES THE EMBRACE OF PRESIDENT CLINTON HERE HAS BEEN NEARLY RHAPSODIC THIS IS AMERICA'S SECOND REVOLUTION DECLARED FORMER REP BELLA ABZUG THIS WEEK NO IRONY INTENDED ONE WASHINGTON LAWYER APPARENTLY AN ADULT TOLD THE WASHINGTON POST THAT SHE WAS A CLINTON GROUPIE BECAUSE HE'S GOING TO FIX THE WORLD THIS CITY IS INDEED DREAMING GREAT DREAMS AGAIN THE THEME OF THE WEEK WAS REUNION BUT IT MAY BE MORE ACCURATE TO CALL IT REDEMPTION WASHINGTON'S GOVERNING CLASS HOPES IT HAS FINALLY FOUND A REDEEMER A WHITE KNIGHT A LIBERAL REAGAN WHO WILL ONCE AGAIN MAKE ITS PHILOSOPHY A MAJORITY AMERICAN FAITH THE YEARNING IS FOR A REDEMPTIVE PRESIDENCY MR CLINTON CERTAINLY UNDERSTANDS THE USES OF SYMBOLISM TO EVOKE THAT ASPIRATION HIS HOMAGE AT JFK'S GRAVE WAS A BRILLIANT BOW TO GENERATIONAL PROMISE IT'S NO ACCIDENT THAT YOUNGER VOTERS WHO FAVORED MR REAGAN'S IDEALISM IN THE 1980S ARE NOW DRAWN TO MR CLINTON'S HE MANAGED TO ASSEMBLE MOST OF HOLLYWOOD AMERICA'S FACTORY OF SYMBOLIC CULTURE TO GIVE HIM AN AIR OF GLAMOUR HE EVEN BROUGHT KENNEDYSTYLE GRACE NOTES TO HIS LUNCH WITH CONGRESS I MAY BE HERE ALL THE TIME PRESIDENT CLINTON SAID SHOWING THE PROPER DEFERENCE HE THEN QUIPPED THAT WHEN HE THOUGHT OF UNTANGLING PROBLEMS ON THE HILL HIS HEAD ALMOST AS IF BY MAGIC TILTED IN SEN DOLE'S DIRECTION FLATTERING THE REPUBLICAN LEADER THE MEMBERS RESPONDED BY BREAKING PROTOCOL AND INVITING MR CLINTON TO CAPITOL HILL AT ANY TIME EVEN WITHOUT A FORMAL REQUEST LIKE RONALD REAGAN MR CLINTON HOPES TO USE THIS EARLY POPULARITY TO ACHIEVE EARLY SUCCESS BUT MR REAGAN WAS TRYING TO PARE BACK GOVERNMENT AT A TIME OF PUBLIC SKEPTICISM ABOUT GOVERNMENT MR CLINTON'S HARDER TASK IS TRYING TO REKINDLE FAITH IN GOVERNMENT AT A TIME WHEN AMERICANS ARE STILL SKEPTICAL ABOUT GOVERNMENT ON THE DAY BEFORE HIS INAUGURAL A LOS ANGELES TIMES POLL SHOWED THAT ONLY ONE IN FIVE AMERICANS TRUSTS GOVERNMENT TO DO WHAT IS RIGHT MOST OF THE TIME ONLY THREE IN FIVE TRUST WASHINGTON SOME OF THE TIME MORE CONCRETELY MR CLINTON NOW PRESIDES OVER A GOVERNMENT THAT IS AMERICA'S LARGEST INDUSTRY EMPLOYING 18 MILLION WORKERS IN THEIR NEW BOOK MARKET LIBERALISM DAVID BOAZ AND EDWARD CRANE WRITE THAT IN 1950 THE AVERAGE FAMILY PAID ONLY 2 OF ITS INCOME TO THE FEDERAL GOVERNMENT TODAY IT IS 25 EVEN AFTER ADJUSTING FOR INFLATION FEDERAL OUTLAYS HAVE TRIPLED SINCE 1960 AND GOVERNMENT SPENDING AT ALL LEVELS NOW EXCEEDS 20000 A YEAR PER FAMILY AMERICANS SINCE JFK HAVE PAID FOR CAMELOT BUT ARE STILL WAITING TO SEE IT THE POLITICAL SCIENTIST EVERETT CARLL LADD SAYS THAT EVEN THE 1992 ELECTION POLLS SHOW NO BASIC SHIFT IN PUBLIC VIEWS OF GOVERNMENT IN TERMS OF POLITICAL PHILOSOPHY HE WRITES IN THE INTERNATIONAL JOURNAL OF PUBLIC OPINION GOVERNMENT'S SIZE AND MALPERFORMANCE ARE SEEN AS PROBLEMS BY MANY ALL ACROSS THE POLITICAL SPECTRUM IRONICALLY THE GROWING PUBLIC OPPOSITION TO MR CLINTON'S ATTORNEY GENERALDESIGNATE ZOE BAIRD MAY DERIVE FROM THIS SAME HOSTILITY TO GOVERNMENT MANY AMERICANS SO DISTRUST WASHINGTON'S ELITES THAT THEY WON'T EVEN FORGIVE A MOTHER FOR HIRING AN ILLEGAL IMMIGRANT TO CARE FOR HER SON THEIR FIRST INSTINCT IS TO THINK THE ELITES HAVE RIGGED THE GAME AND THIS SKEPTICISM EXTENDS TO MR CLINTON'S YUPPIE NOMINEES AS MUCH AS IT EVER DID TO MR BUSH'S COUNTRYCLUBBERS THE GREAT PARADOX OF THE CLINTON PRESIDENCY IS THAT IF HE REALLY WANTS TO RENEW FAITH IN GOVERNMENT HE WILL FIRST HAVE TO DISCIPLINE IT IF HE REALLY WANTS TO REDEEM WASHINGTON HE WILL FIRST HAVE TO SHOW HE CAN CONTROL ITS APPETITES THE ONLY WAY TO PERSUADE AMERICANS TO SACRIFICE WILL BE TO MAKE WASHINGTON SACRIFICE FIRST IN SHORT MR CLINTON WILL HAVE TO ACT LESS LIKE HIS HERO KENNEDY AND MORE LIKE RONALD REAGAN THE ALTERNATIVE MAY HAVE FLOWN FROM AN AIRPLANE ABOVE LAST SUNDAY'S CLINTONGORE BUS TRIP FROM MONTICELLO TO WASHINGTON THE PLANE CARRIED A BANNER THAT DECLARED CUT SPENDING NOW OR ROSS WILL IN '97 9301220103 930122 MANAGEMENT ONCE MALE ENCLAVES CORPORATE BOARDS NOW COMB EXECUTIVE SUITES FOR WOMEN BY JULIE AMPARANO LOPEZ STAFF REPORTER OF THE WALL STREET JOURNAL THE GROWING PRESENCE OF WOMEN IN THE NATION'S EXECUTIVE SUITES IS RESHAPING CORPORATE BOARDROOMS WITH MORE WOMEN NOW REACHING SENIORMANAGEMENT LEVELS BUSINESSES ARE TAPPING RECORD NUMBERS OF THEM FOR BOARD SLOTS THE PROPORTION OF CORPORATE BOARDS APPOINTING WOMEN IN 1992 SURGED TO AN ALLTIME HIGH OF 60 ACCORDING TO A RECENT SURVEY BY RECRUITERS KORN/FERRY INTERNATIONAL KENNY KINDLER HUNT & HOWE REPORTS THAT 50 OF ITS CURRENT DIRECTOR SEARCHES SEEK WOMEN WITH BUSINESS EXPERIENCE THERE IS STILL A LONG WAY TO GO NEARLY HALF OF THE NATION'S BIGGEST CORPORATIONS DON'T HAVE A WOMAN DIRECTOR ACCORDING TO A RECENT SURVEY BY CATALYST A NONPROFIT RESEARCH ORGANIZATION IN NEW YORK THAT FOCUSES ON WORKING WOMEN NEVERTHELESS WOMEN WITH BUSINESS EXPERIENCE ARE IN HOT DEMAND TO SERVE ON CORPORATE BOARDS SAYS PAUL D MCKINNIS A SENIOR VICE PRESIDENT OF THE SEARCH FIRM PAUL R RAY & CO LEGAL EXPERIENCE IS ALSO DESIRABLE AS EVIDENCED BY THE RECENT TENURE OF FIRST LADY AND LAWYER HILLARY CLINTON ON THE BOARD OF WALMART STORES INC MR MCKINNIS SAYS THAT 40 OF HIS COMPANY'S CURRENT BOARDSEAT ASSIGNMENTS ARE FOR BUSINESSWOMEN YET AS RECENTLY AS 1991 JUST 10 OF SUCH SEARCHES WERE FOR WOMEN AND FIVE YEARS AGO REQUESTS FOR FEMALE BUSINESS EXECUTIVES WERE RARE CERTAINLY WOMEN WITH TOPLEVEL BUSINESS EXPERIENCE WERE AROUND IN THE 1970S AND '80S AND MANY COMPANIES QUICKLY APPOINTED THEM TO THEIR BOARDS BUT OVERALL IN THOSE YEARS FEMALE BOARD MEMBERS WERE OFTEN BIGNAME SOCIALITES OR RELATED TO THE COMPANY BRASS OTHERS CAME FROM THE NONPROFIT SECTOR OR ACADEMIA THE NET EFFECT WAS THAT WOMEN ON THE BOARD LACKING BUSINESS EXPERIENCE TENDED TO PLAY NOMINAL ROLES IN COMPANY AFFAIRS AND OFTEN WERE RELEGATED TO COMMUNITYRELATIONS COMMITTEES AND THE LIKE TODAY'S WOMEN BOARD MEMBERS ARMED WITH MORE BUSINESS KNOWLEDGE AND EXPERIENCE CAN BE FOUND HEADING POWERFUL EXECUTIVE AND AUDIT COMMITTEES OTHERS ARE INFLUENCING POLICY IN FINANCE ACQUISITIONS AND EXECUTIVE PAY MANY TAKE A HANDSON APPROACH TO THEIR DIRECTORS' JOBS CONSIDER ELLEN R GORDON THE NEWEST MEMBER OF CPC INTERNATIONAL INC'S BOARD AT HER FIRST BOARD MEETING LAST YEAR THE TOOTSIE ROLL INDUSTRIES INC EXECUTIVE EXAMINED THE MERITS OF CPC ACQUIRING A FOREIGN SOUP COMPANY SHE LATER AGREED WITH FELLOW DIRECTORS THAT THE ACQUISITION MADE SENSE SHE SAYS TO LEARN QUICKLY ABOUT CPC'S GROCERY BUSINESS MS GORDON INTERVIEWED SENIOR EXECUTIVES AND VISITED A COMPANY PLANT JUST MONTHS AFTER BEING NAMED TO THE BOARD TOKEN WOMEN ON BOARDS ARE DEAD TODAY WOMEN CAN READ AND UNDERSTAND BALANCE SHEETS SAYS FELICE SCHWARTZ PRESIDENT OF CATALYST THE RESEARCH CONCERN THEY KNOW WHAT THEY'RE TALKING ABOUT AND THEY'RE NOT AFRAID TO SPEAK UP VENCOR INC'S FIRST FEMALE DIRECTOR JOINED THE BOARD LAST SPRING AND ALREADY IS HELPING THE LOUISVILLE KY HOSPITAL OPERATOR TO NAVIGATE THROUGH ACQUISITION DISCUSSIONS AND TO MAP FUTURE STRAGEGY SAYS W BRUCE LUNSFORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER DONNA ECTON THE NEW DIRECTOR IS CHIEF EXECUTIVE OFFICER OF CANDY MAKER VAN HOUTEN INC SHE HAS BECOME A VERY VALUABLE MEMBER OF THE BOARD IN A VERY SHORT TIME MR LUNSFORD SAYS MANY BUSINESS LEADERS SAY BUSINESSWOMEN'S BOARD POWER WILL BECOME FORMIDABLE WHEN MORE THAN ONE HOLDS A DIRECTOR'S SEAT AT A PARTICULAR CORPORATION WOMEN CAN ONLY DO SO MUCH ALONE NOTES ROBIN B SMITH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PUBLISHERS CLEARING HOUSE AND A DIRECTOR OF FOUR CORPORATE BOARDS WHEN BOARDS GET MORE THAN ONE WOMAN YOU'LL SEE THE DYNAMICS CHANGE THAT IS ALREADY TRUE AT SEARS ROEBUCK & CO WOMEN NOW ACCOUNT FOR THREE OF ITS NINE BOARD MEMBERS AND CONTROL TWO COMMITTEES NORMA PACE PRESIDENT OF ECONOMIC CONSULTING & PLANNING HEADS THE AUDIT PANEL NANCY CLARK REYNOLDS VICE CHAIRMAN OF THE WEXLER GROUP HEADS THE BOARD'S PUBLICISSUES COMMITTEE THE THREE FEMALE DIRECTORS JOINED FORCES IN FAVORING A DECISION TO SELL AND SPIN OFF SUCH NONRETAIL SUBSIDIARIES AS SEARS' FINANCIALSERVICES BUSINESS LAST YEAR MS PACE REMEMBERS THE WOMEN WERE CONCERNED ABOUT COMPETITIVE THREATS TO SEARS' CORE RETAIL BUSINESS SHE ADDS AS FAMILIES' PRIMARY SHOPPERS WOMEN ARE OUT THERE SHE SAYS WE SEE THE NEW DEVELOPMENTS AND TRENDS WHILE SHOPPING AND HOW THEY COULD AFFECT SEARS SEARS WILL LIKELY GIVE MORE WOMEN BOARD SEATS IN THE FUTURE WE HAVE A CUSTOMER BASE THAT IS WELL ABOVE 50 WOMEN SAYS SEARS CHAIRMAN EDWARD BRENNAN EXPLAINING THAT FEMALE DIRECTORS ARE ESSENTIAL IN HELPING THE COMPANY UNDERSTAND CONSUMERS BETTER IN SOME CASES BOARD DECISIONS INFLUENCED BY BUSINESSWOMEN SEEM MUNDANE BUT CARRY SIGNIFICANT REPERCUSSIONS SOON AFTER M KATHRYN EICKHOFF PRESIDENT OF EICKHOFF ECONOMICS INC JOINED THE BOARD OF PHARMACEUTICAL MAKER UPJOHN CO IN 1987 SHE NOTICED THAT ITS EMPLOYEE PENSION FUND WAS BEING REVIEWED BY CORPORATE OFFICIALS LACKING INVESTMENT BACKGROUND SHE SAYS SHE PROPOSED THAT SHE AND OTHER DIRECTORS WITH PORTFOLIOMANAGEMENT EXPERIENCE SCRUTINIZE THE FUND INSTEAD WE'VE BEEN ABLE TO MAKE DECISIONS MORE QUICKLY ON THE PENSION FUND NOW MS EICKHOFF SAYS THAT HAS ASSISTED UPJOHN IN MANAGING THE FUND MORE EFFECTIVELY AND TAKING ADVANTAGE OF MARKET CONDITIONS SHE ADDS IN OTHER CASES WOMEN REPRESENT A BOARD'S SOLE EXPERTS ON A PARTICULAR SUBJECT SPECIALTYCHEMICAL MAKER DEXTER CORP RECRUITED MARTHA CLARK BRILEY PRESIDENT OF PRUDENTIAL ASSET MANAGEMENT CO FOR ITS BOARD LAST APRIL PARTLY BECAUSE OF HER FINANCE BACKGROUND MS BRILEY'S EXPERTISE HELPED THE COMPANY TO DEAL WITH A COMPLICATED FOREIGNCURRENCY ISSUE LAST YEAR SHE SAYS THE BOARD WAS UNSURE WHETHER THE COMPANY NEEDED ADDITIONAL FOREIGN CURRENCY FOR OVERSEAS OPERATIONS HER ANALYSIS CONCLUDED THAT DEXTER DIDN'T NEED THE EXTRA FOREIGN CURRENCY OTHER THAN THE CHIEF FINANCE OFFICER MS BRILEY WAS THE ONLY BOARD MEMBER WITH A FINANCIAL BACKGROUND WOMEN'S INCREASED BOARDROOM INVOLVEMENT CAN BRING GAINS FOR LOWERLEVEL WOMEN HICKS B WALDRON FORMER CHAIRMAN AND CHIEF EXECUTIVE OF AVON PRODUCTS INC REMEMBERS HOW FORMER AVON BOARD MEMBER RUTH BLOCK REVAMPED THE COMPANY'S SALESINCENTIVES PROGRAMS AND IMPROVED PROMOTIONAL PACKAGES SOON AFTER SHE JOINED THE BOARD IN 1986 THE CONTRIBUTIONS OF MS BLOCK THEN AN EXECUTIVE VICE PRESIDENT OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US ENABLED THE COSMETICS TOILETRIES AND JEWELRY MAKER TO CATER TO ITS PREDOMINATELY FEMALE SALES FORCE BETTER SAYS MR WALDRON AT DAYTON HUDSON CORP A BLACK FEMALE DIRECTOR IS PUSHING TO MAKE WORKFORCE DIVERSITY A HIGHER PRIORITY MICHELE HOOPER PRESIDENT OF ALTERNATIVE HEALTHCARE PROVIDER CAREMARK INTERNATIONAL INC SAYS THAT SHE LOBBIED TO CREATE AN AVENUE FOR MINORITIES AND WOMEN TO GAIN BOARD RECOGNITION LAST FALL NOW THE BIG RETAILER'S BOARD HEARS PRESENTATIONS FROM LOWERRANKING WOMEN AND MINORITIES THOUGH WOMEN BRING MORE BUSINESS EXPERTISE TO BOARDROOMS MANY OF THEM STILL FACE RESISTANCE PARTICULARLY WHEN THEY JOIN FORMERLY ALLMALE BOARDS THE GOOD OL' BOYS' NETWORK UNFORTUNATELY IS STILL ALIVE AND THRIVING ON MANY BOARDS SAYS MR WALDRON THE FORMER AVON CHAIRMAN WHO NOW IS CHAIRMAN OF BOARDROOM CONSULTANTS A KENNY KINDLER UNIT AND A MEMBER OF FOUR CORPORATE BOARDS YOU SEE MEN ROLL THEIR EYES WHEN THE FIRST WOMAN JOINS THE BOARD MAKING MATTERS WORSE A NUMBER OF FEMALE DIRECTORS CONTINUE TO HOLD EXECUTIVE POSITIONS BELOW THEIR MALE BOARD COLLEAGUES BECAUSE SO FEW WOMEN HAVE REACHED MANAGEMENT'S TOP TIER SAYS CHRISTOPHER HUNT COEDITOR OF EXECUTIVE SEARCH REVIEW A NEWSLETTER HOWEVER MANY WOMEN BELIEVE THE SITUATION IS IMPROVING RAPIDLY I DON'T THINK WOMEN DIRECTORS ARE SEEN AS DIFFERENT FROM THEIR MALE COUNTERPARTS SAYS MS GORDON THE CPC INTERNATIONAL BOARD MEMBER I BELIEVE COMPANIES ARE LOOKING TO WOMEN FOR THEIR EXPERTISE NOT THEIR GENDER 9301220102 930122 DOUBLEDAY MAY HAVE SOME JOBS THAT AREN'T SO SECURE RIGHT NOW BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU ARE HUNTING FOR WORK THESE DAYS YOU MAY HESITATE TO RUSH YOUR RESUME TO INTERNATIONAL BUSINESS MACHINES CORP XEROX CORP DEERE & CO OR DOZENS OF OTHER COMPANIES THAT HAVE BEEN SLASHING THEIR PAYROLLS OF LATE BUT DON'T TELL THAT TO THE AUTHORS OF THE LATEST EDITION OF THE 100 BEST COMPANIES TO WORK FOR IN AMERICA BEING PUBLISHED TODAY BY BERTELSMANN AG'S DOUBLEDAY UNIT IT COUNTS IBM XEROX DEERE AND OTHER TROUBLED COMPANIES AMONG ITS FAVORED SELECTIONS THE 100 COMPANIES SELECTED FROM AMONG 400 NOMINEES AND 147 FINALISTS ARE MAGNETS FOR PEOPLE LOOKING FOR MEANINGFUL WORK AND MODELS FOR COMPANIES TRYING TO GET IT RIGHT THE BOOK GUSHES AS SUCH THEY HERALD THE FUTURE IF THAT'S SO THE FUTURE MAY HAVE CLOUDS IBM FOR ONE HAS CUT 100000 JOBS SINCE THE MID1980S ABOUT ONEFOURTH OF ITS WORK FORCE AND EXPECTS TO TRIM ANOTHER 25000 POSITIONS THIS YEAR CUMMINS ENGINE CO INLAND STEEL INDUSTRIES INC AND WEYERHAEUSER CO ALSO MADE THE BOOK DESPITE BIG WORKFORCE REDUCTIONS IT'S VERY ODD SAYS ROGER KENNY A NEW YORKBASED EXECUTIVE RECRUITER THAT SUCH COMPANIES RATED WELL THESE ARE SLEEPY TIRED COMPANIES WHERE THERE IS NO JOB SECURITY ANYMORE YOU CAN'T DEFEND WORKING AT IBM TODAY ROBERT LEVERING ONE OF THE BOOK'S COAUTHORS NOTES THAT IBM ISN'T A TOP 10 CHOICE AS IT WAS IN THE BOOK'S FIRST EDITION IN 1984 BUT HE DEFENDS INCLUDING IBM AND OTHER AXWIELDING COMPANIES I JUST DON'T BELIEVE THAT JOB SECURITY IS THE ONE AND ONLY ISSUE THAT ONE SHOULD LOOK AT WHEN YOU'RE TALKING ABOUT A GOOD WORKPLACE HE SAYS AMONG OTHER FACTORS CONSIDERED PAY AND BENEFITS POLICIES ADVANCEMENT OPPORTUNITIES AND WORKER PRIDE FOR COMPANIES SLASHING JOBS HE AND HIS COAUTHOR MILTON MOSKOWITZ AWARDED POINTS FOR HOW THEY HANDLED THEIR LAYOFFS MR LEVERING SAYS INCLUDING HOW MUCH NOTICE AND JOBHUNTING HELP THE COMPANIES OFFERED FOR PEOPLE GOING OUT WITH WONDERFUL SEVERANCE PACKAGES THAT'S QUITE DIFFERENT FROM BEING PUSHED OUT THE DOOR IN ALL 45 COMPANIES FROM THE 1984 LIST WERE DROPPED FROM THE NEW VERSION PREDICTABLY IBM IS DELIGHTED TO HAVE SURVIVED THE CUT IT VERIFIES THAT DESPITE THE TURMOIL AND THE TUMULT AND THE CHANGE EMPLOYEES STILL MAINTAIN A SENSE OF PRIDE AN IBM SPOKESMAN SAYS 9301220101 930122 TECHNOLOGY DELL COMPUTER ESCALATES PRICE WAR IN JAPAN BY INTRODUCING LOWCOST PCS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DELL COMPUTER CORP ESCALATED A PERSONALCOMPUTER PRICE WAR IN JAPAN BY UNVEILING PLANS TO SELL SIX TYPES OF HIGHEND PCS IN JAPAN AT PRICES 25 TO 60 LOWER THAN THOSE OF ITS RIVALS AT A NEWS CONFERENCE IN DELL'S TOKYO OFFICES CHIEF EXECUTIVE OFFICER MICHAEL DELL OUTLINED THE COMPANY'S PLANS TO TARGET CORPORATE CUSTOMERS THROUGH DIRECT SALES THE COMPANY'S PREFERRED EUPHEMISM FOR MAIL ORDER ITS MAIN AVENUE FOR PC SALES IN THE US ACCORDING TO MR DELL THE COMPANY'S MORE EFFICIENT BUSINESS MODE WILL ALLOW DELL TO UNDERCUT ITS COMPETITORS' PRICES BECAUSE THE COMPANY CAN AVOID PAYING THE ADDED COST OF DISTRIBUTION DELL'S KICKOFF OF ITS FULLSCALE JAPANESE OPERATIONS FORESHADOWED FOR WEEKS BY PRESS LEAKS AND SPECULATION ABOUT THE COMPANY'S SALES STRATEGY MARKS THE LATEST MOVE IN AGGRESSIVE US MARKETING TACTICS INTO THE ONCEPLACID WORLD OF JAPANESE PC SALES DELL JOINS COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP BOTH OF WHICH ANNOUNCED LOWPRICED PCS FOR SALE IN JAPAN LAST FALL THE US COMPANIES HAVE SET THEIR EYES ON THE WORLD'S SECONDLARGEST MARKET FOR PERSONAL COMPUTERS ONCE RULED BY NEC CORP WITH AN IRON GRIP ON ITS NETWORK OF RETAIL DISTRIBUTORS AND A HUGE LIBRARY OF SOFTWARE NEC HAS FOR YEARS ENJOYED A MARKET SHARE OF MORE THAN 50 AND THE LUXURY OF SELLING ITS COMPUTERS AT HIGH PRICES BUT NEC SEEMS TO BE GETTING NERVOUS FIRST SHIPMENTS OF ITS PCS DURING THE LAST THREE MONTHS OF 1992 FELL 9 FROM THE YEAREARLIER PERIOD THEN AFTER MONTHS OF DENYING THAT THEY PLANNED TO CUT PRICES COMPANY OFFICIALS THIS MONTH ANNOUNCED A NEW LINE OF LOWPRICED HIGHEND PCS THOUGH NEC DENIED IT WAS REACTING TO COMPETITION FROM COMPAQ AND IBM ITS NEW MACHINES PRICED FROM 218000 YEN TO 830000 YEN 1750 TO 6650 WERE NEARLY 60 CHEAPER AT THE LOWER END THAN THE COMPARABLE MODELS THEY REPLACED DELL THE WORLD'S FIFTH LARGEST PC MAKER SEEMS INTENT ON PUSHING SUCH COST COMPETITION EVEN FURTHER OFFICIALS AT THE NEWS CONFERENCE PRESENTED A PRICE COMPARISON OF THREE DELL COMPUTERS AND MACHINES FROM COMPAQ IBM AND NEC WITH IDENTICAL SPEED AND MEMORY AND COMPARABLE HARDDISK STORAGE CAPACITIES NEC'S PRICES WERE AS MUCH AS 60 HIGHER THAN DELL'S COMPAQ'S PRICES WERE GENERALLY CLOSEST TO DELL'S AT ONE POINT COMING WITHIN 25 THE COMPANY'S COMPETITORS WHO DON'T CONTEST DELL'S PRICE COMPARISON DO NOTE THAT THEIR OWN SUGGESTED RETAIL PRICES ARE USUALLY DISCOUNTED ABOUT 20 BY RETAILERS AND WHOLESALERS SO THE PRICE GAP IS LIKELY TO BE SMALLER THAN THE COMPARISON SUGGESTS DELL SAYS IT WON'T OFFER SUCH DISCOUNTS BECAUSE ITS PRICES ARE ALREADY LOW ENOUGH THE COMPANY'S SUCCESS NOW HINGES ON WHETHER IT CAN SELL PCS OVER THE TELEPHONE MANY ANALYSTS IN FACT HAVE DOUBTED WHETHER MAIL ORDER WILL WORK AT ALL FOR PC SALES IN JAPAN IF YOU DON'T GO THROUGH DISTRIBUTORS SOONER OR LATER YOU GET SQUEEZED OUT OF THE MARKET SAYS CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN LTD DELL'S STRATEGY COULD WORK HE SAYS BUT I WOULDN'T BET ON IT DELL HOWEVER IS BETTING IT CAN TRANSPLANT TO JAPAN ITS US METHOD OF OPERATIONS IN WHICH THE COMPANY ASSEMBLES PCS TO CUSTOMER SPECIFICATIONS LOADS THEM WITH SOFTWARE AND DELIVERS THEM THE COMPANY ALSO INTENDS TO OFFER CUSTOMERS FULL TECHNICAL SUPPORT FROM PROVIDING TELEPHONE ADVICE TO DISPATCHING SERVICE ENGINEERS FROM DELL'S POINT OF VIEW THE BIGGEST HURDLE IT FACES IS ONE OF NAME RECOGNITION TO FAMILIARIZE ITS TARGETED CORPORATE CUSTOMERS WITH THE IDEA OF BUYING COMPUTERS SIGHT UNSEEN THE COMPANY WILL SOON BEGIN AN ADVERTISING CAMPAIGN MOSTLY THROUGH DIRECT MAIL AND ADS IN COMPUTERRELATED MAGAZINES AND NEWSPAPERS MR DELL DECLINED TO PROVIDE FURTHER DETAILS SOME JAPANESE CORPORATIONS MAY BE SURPRISINGLY RECEPTIVE TO DELL'S TACTICS SYSTEMS MANAGERS CONTACTED AT THREE MAJOR COMPANIES HONDA MOTOR CO NOMURA SYSTEM SERVICES CO AND NIPPON STEEL CORP ALL SAID THEY'D CONSIDER DELL'S COMPUTERS BASED ON PRICE ALONE ALTHOUGH SOME HAD CONCERNS ABOUT DELL'S ABILITY TO SERVICE ITS MACHINES AND TO SUPPLY THEM IN QUANTITY TYPICAL WAS SHINTARO MAEDA A PLANNING MANAGER AT NOMURA SYSTEM A COMPUTER CONSULTING FIRM IF IT IS REALLY CHEAP AND OFFERS GOOD FUNCTIONALITY I'D LIKE TO CHECK IT OUT 9301220100 930122 BUSINESS BRIEFS AMERICAN EXPRESS CO'S TRAVEL UNIT OPENED FIVE NEW OFFICES IN THE SLOVAK REPUBLIC MILTOPE GROUP INC RECEIVED 128 MILLION IN CONTRACTS FOR SPECIALIZED COMPUTER PERIPHERAL EQUIPMENT FROM THE US ARMY GE AEROSPACE AND EDSSCICON DEFENCE LTD HUBCO INC SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE PILGRIM STATE BANK FROM RAMAPO FINANCIAL CORP FOR 6 MILLION SUBJECT TO REGULATORY APPROVALS LOUISIANAPACIFIC CORP PLANS TO CONSTRUCT A BUILDINGPRODUCTS MANUFACTURING COMPLEX OF FIVE PLANTS IN VENEZUELA AS PART OF A DEAL BETWEEN THE COMPANY'S WHOLLY OWNED SUBSIDIARY LOUISIANAPACIFIC DE VENEZUELA CA AND CORPORACION VENEZOLANA DE GUAYANA ESKIMO PIE CORP DIRECTORS ADOPTED A SHAREHOLDER RIGHTS PLAN TO PROTECT THE COMPANY FROM UNWANTED TAKEOVER EFFORTS CIGNA CORP'S FOURTHQUARTER NET INCOME WAS REDUCED 33 MILLION DUE TO THE EFFECTS OF A DECEMBER NORTHEASTERN WINTER STORM AND HURRICANES ANDREW AND INIKI NORTHERN TELECOM LTD RECEIVED A 13 MILLION CONTRACT TO PROVIDE PETROLEOS MEXICANOS WITH A TELECOMMUNICATIONS NETWORK 9301220099 930122 LLOYD'S CHANGES WAY IT DOES BUSINESS PILLAR OF LONDON FINANCE IS SHAKEN BY HUGE LOSSES BY NICHOLAS BRAY AND CHARLES FLEMING STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON IN THE MIDDLE OF A CONVERSATION ABOUT THE FUTURE OF LLOYD'S OF LONDON DAVID ROWLAND CHAIRMAN OF THE INSURANCE MARKET SUDDENLY NOTICES SOMETHING WRONG WITH THE MAGNIFICENT 18THCENTURY CLOCK ADORNING HIS SPACIOUS OFFICE ITS HANDS HAVE STOPPED IT MAY BE HE SAYS THAT ONE OF THE PEOPLE WE HAVE JUST DISMISSED WAS THE CLOCK WINDER WITH OR WITHOUT THE CLOCK WINDER A HASTILY IMPOSED AUSTERITY PLAN MARCHES ON TIMES ARE HARSH AT LLOYD'S WHERE LOSSES TOTALING BILLIONS OF POUNDS IN THE PAST FEW YEARS HAVE RUINED SOME TRADERS AND CAUSED SEVERE HARDSHIP FOR MANY MORE HIT BY A DECLINE IN INVESTOR SUPPORT LLOYD'S IS DESPERATELY TRYING TO WIN BACK CONFIDENCE WITH CHANGES IN THE WAY IT DOES BUSINESS FROM A PREDOMINANTLY ENGLISHSPEAKING BASE IN BRITAIN AND NORTH AMERICA ITS AIM IS TO WIDEN ITS MEMBERSHIP AROUND THE GLOBE FROM ASIA TO LATIN AMERICA BUT IT CAN ONLY DO SO SAYS MR ROWLAND WHO TOOK OVER THE HELM AT LLOYD'S EARLIER THIS MONTH IF IT CAN SHOW IT IS CAPABLE OF OPERATING AT A PROFIT THERE IS A TREMENDOUS OPPORTUNITY BUT THAT IS IN NO WAY TO BELITTLE THE PROBLEMS HE SAYS IN AN INTERVIEW IF SUBSTANTIAL SAVINGS ON OPERATING COSTS CAN BE ACHIEVED LLOYD'S HAS A CHANCE TO MAKE VERY SERIOUS PROFITS FOR OUR MEMBERS HE PREDICTS HOWEVER HE MAKES CLEAR THAT WITHOUT SUCH SAVINGS LLOYD'S WILL BE UNABLE TO COMPETE WITH THE INSURANCE COMPANIES THAT ARE TAKING AN EVERGREATER SHARE OF ITS BUSINESS THAT IN TURN COULD THREATEN THE SURVIVAL OF ONE OF THE MOST PRESTIGIOUS PILLARS OF BRITISH FINANCE ON THE FACE OF IT THE PROSPECTS SHOULD BE GOOD AFTER YEARS OF LOW PREMIUM LEVELS INSURANCE RATES ARE FIRMING AND UNDERWRITERS ARE IMPOSING TOUGHER TERMS ON THEIR CLIENTS BUT CONSIDERABLE ARMTWISTING STILL IS LIKELY TO BE NEEDED TO GET THE KIND OF SAVINGS THAT MR ROWLAND CONSIDERS NECESSARY IN THE PAST YEAR HE ADMITS THINGS HAVE IMPROVED BUT IT'S NOWHERE NEAR YET WHERE IT MIGHT BE IF WE OPERATED THIS MARKET WHILE STILL KEEPING ITS ESSENTIAL CHARACTERISTICS TO MAXIMUM EFFICIENCY LLOYD'S FIRSTEVER SALARIED CHAIRMAN MR ROWLAND IS WELLPLACED TO MANAGE THE CHANGE A 59YEAROLD VETERAN OF THE LONDON INSURANCEBROKING COMMUNITY UNTIL HE TOOK UP HIS PRESENT POST HE WAS THE CHAIRMAN OF BROKER SEDGWICK PLC HE HAS A THOROUGH INSIDE KNOWLEDGE BOTH OF THE MARKET AND OF THE CHALLENGES OF RUNNING A LARGE BUSINESS ORGANIZATION A YEAR AGO AS CHAIRMAN OF A TASK FORCE SET UP TO ANALYZE LLOYD'S PROBLEMS HE LAID OUT A WIDELY ACCLAIMED BLUEPRINT FOR THE FUTURE SINCE THEN MANY OF HIS PROPOSALS HAVE BEEN IMPLEMENTED INCLUDING A SYSTEM OF MUTUALIZED STOPLOSS INSURANCE THAT PUTS A CAP ON HOW MUCH ANY INDIVIDUAL CAN LOSE ON THE MARKET OVER A GIVEN PERIOD IN THE PAST FEW MONTHS THE LLOYD'S SUPERVISORY STRUCTURE HAS BEEN STREAMLINED AND SEVERAL DOZEN COMMITTEES ABOLISHED MEMBERSHIP SUBSCRIPTIONS HAVE BEEN CUT STEPS ALSO HAVE BEEN TAKEN TO DEFUSE A LITIGIOUS CLIMATE IN WHICH ANGRY MEMBERS THE INDIVIDUAL TRADERS KNOWN AS NAMES AND WHOSE CAPITAL PROVIDES THE BACKING FOR LLOYD'S POLICIES WERE SUING THEIR AGENTS AND EVEN LLOYD'S ITSELF OVER LOSSES IN NOVEMBER LLOYD'S IMPOSED A SIXMONTH MORATORIUM ON ACTION BY ITS LAWYERS TO RECOVER FUNDS OWING TO IT TO COVER THESE LOSSES IN THE NEXT FEW MONTHS MR ROWLAND AND PETER MIDDLETON THE CHIEF EXECUTIVE PLAN TO EXPLORE THE POSSIBILITIES FOR A NEGOTIATED SETTLEMENT BETWEEN NAMES AND THEIR AGENTS OVER ALLEGATIONS OF INCOMPETENCE IN RELATION TO SOME OF THE BIGGEST LOSSES BUT OTHER INNOVATIONS LIKELY TO PLAY A KEY ROLE IN THE MARKET'S FUTURE STILL HAVE TO BE FLESHED OUT INCLUDING MOVES TO WIDEN ITS CAPITAL BASE BY OFFERING NEW OPENINGS FOR PRIVATE INVESTORS A COMPLEX CLAIMSPROCESSING SYSTEM NEEDS OVERHAULING AND THE DOZENS OF DIFFERENT DATAPROCESSING SYSTEMS OPERATED BY LLOYD'S AGENCIES NEED TO BE HARMONIZED INDEED IF LLOYD'S IS TO CARRY ON INTO THE 21ST CENTURY SOME PEOPLE THINK ITS ENTIRE STRUCTURE NEEDS TO BE MODIFIED WITH THE HELP OF MR MIDDLETON A TOUGHTALKING 52YEAROLD FORMER DIPLOMAT BANKER AND TRAVEL INDUSTRY EXECUTIVE WHO CAME TO LLOYD'S IN SEPTEMBER WITH NO PREVIOUS EXPERIENCE OF INSURANCE MR ROWLAND HAS SET OUT TO SWEEP A NEW BROOM THROUGH THE MARKET SOME OF HIS ACTIONS ALREADY HAVE CONVEYED AN ELOQUENT MESSAGE THE ROLLSROYCE THAT WENT WITH THE CHAIRMAN'S JOB HAS BEEN SOLD THE NUMBER OF SECRETARIES AND OTHER SUPPORT STAFF IN THE LAVISHLY APPOINTED EXECUTIVE SUITE ON THE 12TH FLOOR OF LLOYD'S HEADQUARTERS HAS BEEN SLASHED BY HALF TO 14 AMONG THOSE TO GO WERE THE TWO CHAIRMAN'S WAITERS DRESSED IN BLUEANDRED TAIL COATS WITH SILVER BUTTONS WHO PREVIOUSLY GUARDED ACCESS TO THE CHAIRMAN'S OFFICE ALTOGETHER THE CORPORATION OF LLOYD'S WHICH RUNS THE LLOYD'S MARKET HAS SET ITSELF THE TARGET OF CUTTING ITS WORK FORCE BY 12 TO 1990 BY THE END OF THIS YEAR AND ITS 1993 BUDGET BY 18 TO 118 MILLION 1812 MILLION FURTHER CUTS ARE PLANNED WITH A VIEW TO REDUCING EXPENDITURE BY AT LEAST 30 OVER THE MEDIUM TERM BUT THOUGH THESE CUTBACKS WILL HELP THEY'RE A DROP IN THE OCEAN COMPARED WITH WHAT IS NEEDED ACROSS THE ENTIRE STRUCTURE OF THE 305YEAROLD MARKET MESSRS ROWLAND AND MIDDLETON ARE CALLING FOR ANNUAL SAVINGS OF HUNDREDS OF MILLIONS OF POUNDS THE DOZENS OF MEMBERS' AGENCIES AND MANAGING AGENCIES THAT FORM THE BACKBONE OF LLOYD'S WILL HAVE TO LOWER SALARIES CUT WORK FORCES AND STREAMLINE THEIR MANAGEMENT SYSTEMS THEY ALSO WILL HAVE TO FIND NEW WAYS TO DRUM UP BUSINESS IN ASSOCIATION WITH LLOYD'S BROKERS OR THROUGH OTHER STILLTOBETHOUGHTOF CHANNELS WHERE LLOYD'S GOES FROM HERE IS NOW THE SUBJECT OF STUDY BY A NEWLY CREATED MARKET BOARD WHOSE MEMBERS INCLUDE LLOYD'S PROFESSIONALS AND SOME PROMINENT BUSINESSMEN WHO ARE NAMES AT LLOYD'S ONE IS DAVID NEWBIGGING CHAIRMAN OF THE SUCCESSFUL PESTCONTROL COMPANY RENTOKIL ANOTHER IS PAUL MYNERS WHO RUNS THE GARTMORE INVESTMENT GROUP MR ROWLAND SAYS HE HOPES THE BOARD WILL BE IN A POSITION TO PUBLISH DETAILED RECOMMENDATIONS BY APRIL HE HAS REASONS FOR THE URGENCY FOLLOWING LOSSES OF 510 MILLION IN 1988 AND 206 BILLION IN 1989 THE TWO MOST RECENTLY CLOSED ACCOUNTING YEARS A FURTHER HEAVY LOSS POSSIBLY OF 1 BILLION OR MORE IS EXPECTED FOR 1990 THE MEMBERSHIP OF LLOYD'S HAS SLUMPED FROM 32433 IN 1988 TO APPROXIMATELY 20000 MORE THAN 2000 NAMES RESIGNED LAST YEAR AND ONLY 75 NEW MEMBERS JOINED OF WHOM 18 ARE MARKET PROFESSIONALS MANY LLOYD'S INSIDERS ARE BRACING THEMSELVES FOR A FURTHER EXODUS OF NAMES THIS YEAR BY UNVEILING A CLEAR BUSINESS PLAN EARLY IN THE YEAR HOWEVER MR ROWLAND SAYS HE HOPES TO TAKE SOME OF THE STING OUT OF THE FIGURES FOR 1990 WHEN THEY ARE ANNOUNCED THIS SUMMER IT IS EXTREMELY IMPORTANT THAT THE MEMBERSHIP SHOULD SEE WHAT WE TELL THEM IN MAY OR JUNE AGAINST THE BACKDROP OF A PLAN WHICH TELLS THEM THAT WE HAVE AN ONGOING FUTURE OF PROSPERITY HE SAYS THE OBJECTIVE WILL BE TO PERSUADE PEOPLE THAT WE HAVE A SENSIBLE PLAN FOR THE FUTURE 9301220098 930122 ECONOMY CLINTON ADMINISTRATION PLANNING PUSH TO REMOVE OBSTACLES TO BANK LENDING BY KENNETH H BACON AND ASRA Q NOMANI STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS PREPARING A MAJOR REVIEW OF BANK REGULATIONS TO TRY TO CLEAR AWAY IMPEDIMENTS TO LENDING PARTICULARLY TO SMALL BUSINESS WE WILL BE WORKING ON PUTTING TOGETHER A TEAM VERY QUICKLY TO EASE REGULATORY BURDEN LAURA D'ANDREA TYSON PRESIDENT CLINTON'S NOMINEE TO HEAD HIS COUNCIL OF ECONOMIC ADVISERS TOLD THE SENATE BANKING COMMITTEE MS TYSON'S COMMENTS WERE JUST ONE SIGN THAT THE ADMINISTRATION PLANS TO PAY CONSIDERABLE ATTENTION TO BANKING ISSUES AS IT LOOKS FOR WAYS TO SPUR ECONOMIC GROWTH YESTERDAY TREASURY SECRETARY LLOYD BENTSEN ANNOUNCED THAT PRESIDENT CLINTON PLANS TO NAME EUGENE LUDWIG A FRIEND AND CLASSMATE FROM OXFORD AND YALE LAW SCHOOL TO SERVE AS COMPTROLLER OF THE CURRENCY THOUGH MR LUDWIG A LAWYER WITH THE WASHINGTON FIRM OF COVINGTON & BURLING ISN'T PARTICULARLY WELLKNOWN IN BANKING CIRCLES HIS NOMINATION WAS GREETED WITH ENTHUSIASM BY BANKING GROUPS EDWARD YINGLING CHIEF LOBBYIST FOR THE AMERICAN BANKERS ASSOCIATION SAID IT'S ALWAYS IN THE INDUSTRY'S INTEREST TO HAVE A REGULATOR WITH ACCESS TO THE PRESIDENT MR BENTSEN ALSO NAMED TWO OF HIS UNDERSECRETARIES FRANK NEWMAN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF BANKAMERICA CORP WILL BE IN CHARGE OF DOMESTIC FINANCE AN AREA THAT INCLUDES MANAGING THE US'S 3 TRILLION DEBT SUPERVISING THE FINANCIAL SYSTEM AND CRAFTING BANKING AND OTHER FINANCIAL LEGISLATION LAWRENCE SUMMERS CHIEF ECONOMIST AT THE WORLD BANK WILL BE UNDERSECRETARY FOR INTERNATIONAL AFFAIRS IN 1991 CONGRESS WORRIED ABOUT SOARING BANK FAILURES PASSED A LAW THAT IMPOSED STRICTER STANDARDS ON CAPITAL REAL ESTATE LENDING AUDITING AND MANAGERIAL CONDUCT AT BANKS THE INDUSTRY CONTENDS THAT CONGRESS WENT OVERBOARD IN ITS EFFORTS TO IMPROVE BANK SAFETY AND THAT REGULATIONS GENERATED BY THE 1991 LAW COMBINED WITH MORE RIGOROUS BANK EXAMINATIONS HAVE SUFFOCATED LENDING THE CLINTON ADMINISTRATION FEARS THAT LOANS TO SMALL BUSINESS AND REAL ESTATE TWO INDUSTRIES THAT HELP FUEL JOB GROWTH HAVE BEEN HIT PARTICULARLY HARD BY THE TOUGHER REGULATIONS I KNOW THAT SOME HAVE SAID THAT BANK REGULATORY RELIEF MEASURES COULD MEASURABLY STIMULATE LENDING AND CREATE ECONOMIC STIMULUS MR BENTSEN TOLD THE SENATE FINANCE COMMITTEE IN A WRITTEN STATEMENT RELEASED YESTERDAY GIVEN PRESIDENT CLINTON'S FOCUS ON ECONOMIC GROWTH HE SAID I EXPECT THAT CONSIDERATION OF SUCH MEASURES WILL BE A HIGH PRIORITY MS TYSON GAVE FEW DETAILS ABOUT WHAT STEPS THE ADMINISTRATION WILL TAKE TO EASE REGULATION BUT SHE SAID THE CLINTON TEAM SHOULD LOOK VERY CAREFULLY AT SECURITIZATION OF SMALL BUSINESS LOANS A MOVE TO INCREASE LENDING BY PACKAGING LOANS AND USING THEM AS COLLATERAL FOR SECURITIES SOLD TO THE PUBLIC CURRENTLY A WIDE RANGE OF LOANS INCLUDING HOME MORTGAGES STUDENT LOANS AND CREDITCARD DEBT IS SECURITIZED BUT BUSINESS LOANS ARE LESS UNIFORM THAN THESE OTHER TYPES OF CREDIT AND ARE MORE DIFFICULT TO ISSUE SECURITIES AGAINST LAST MONTH DAVID MULLINS VICE CHAIRMAN OF THE FEDERAL RESERVE BOARD RECOMMENDED A THOROUGH REVIEW OF REGULATORY BARRIERS TO BUSINESS LENDING AND SAID THE CENTRAL BANK IS LAUNCHING A MAJOR STUDY OF SMALL BUSINESS LENDING THE FED IS EXPECTED TO WORK CLOSELY WITH THE ADMINISTRATION IN ANY EFFORT TO SPUR MORE CREDIT GETTING CONGRESS TO MAKE SIGNIFICANT CHANGES IN THE 1991 BANKING LAW MAY BE DIFFICULT BECAUSE SO FAR MEMBERS OF THE BANKING COMMITTEES HAVE SHOWN MORE COMMITMENT TO PREVENTING BANK FAILURES THAN TO PROMOTING LENDING AND ECONOMIC GROWTH IN ADDITION MANY LAWMAKERS ARE SKEPTICAL OF BANKING INDUSTRY CALLS FOR REGULATORY RELIEF WHEN BANK PROFITS ARE AT RECORD LEVELS AND FEDERAL SURVEYS SHOW CONTINUED MORTGAGE LENDING DISCRIMINATION AS COMPTROLLER MR LUDWIG WOULD REGULATE NEARLY 4000 NATIONALLY CHARTERED BANKS A GROUP THAT INCLUDES MOST OF THE LARGEST INSTITUTIONS IN ADDITION THE ADMINISTRATION MAY ASK CONGRESS TO STREAMLINE BANK REGULATION BY FOLDING THE OFFICE OF THRIFT SUPERVISION WHICH MONITORS THRIFTS INTO THE COMPTROLLER'S OFFICE 9301220097 930122 BUSINESS BRIEF VLSI TECHNOLOGY INC CHIP MAKER SWINGS TO A LOSS IN 4TH QUARTER ON A CHARGE VLSI TECHNOLOGY INC POSTED A FOURTHQUARTER LOSS OF 254 MILLION OR 77 CENTS A SHARE CITING A 225 MILLION CHARGE RELATED TO RESTRUCTURING COSTS AND PATENT LITIGATION THE LOSS COMPARES WITH NET INCOME OF 19 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 10 TO 1147 MILLION THE SAN JOSE CALIF MANUFACTURER OF APPLICATIONSPECIFIC MICROPROCESSING CHIPS SAID STRONG BOOKINGS FROM THE PERSONAL COMPUTER INDUSTRY PLUS ONGOING COST CUTTING LEAD TO GUARDED OPTIMISM FOR IMPROVEMENT IN 1993 THE LOSS FOR THE YEAR WAS 322 MILLION OR 112 A SHARE COMPARED WITH NET OF 99 MILLION OR 37 CENTS A SHARE REVENUE FOR THE YEAR ROSE 37 TO 4285 MILLION 9301220096 930122 WHO'S NEWS LIVE ENTERTAINMENT NAMES NEW OFFICERS REACHES CREDIT PACT LOS ANGELES LIVE ENTERTAINMENT INC NAMED A NEW MANAGEMENT TEAM AND REACHED AN AGREEMENT IN PRINCIPLE WITH ITS LENDERS TO OBTAIN 50 MILLION IN CREDIT FACILITIES BRINGING THE COMPANY CLOSER TO A PLANNED RESTRUCTURING TO AVERT A BANKRUPTCY FILING UNDER THE AGREEMENT WITH THE HOME VIDEO AND ENTERTAINMENT SOFTWARE COMPANY'S BANK GROUP LED BY CHEMICAL BANK LIVE'S EXISTING LINEOFCREDIT FACILITY WILL BE EXTENDED TO JULY 29 1994 FROM JAN 29 1993 AT A MAXIMUM CREDIT OF 30 MILLION CHEMICAL IS A UNIT OF CHEMICAL BANKING CORP ADDITIONAL CREDIT OF AS MUCH AS 20 MILLION WILL BE PROVIDED BY PIONEER NORTH AMERICA AN AFFILIATE OF TOKYOBASED PIONEER ELECTRONIC CORP'S PIONEER LCDA INC UNIT AND OTHER PARTICIPANTS PIONEER HAS COMMITTED TO PROVIDE AS MUCH AS 15 MILLION OF THE ADDITIONAL CREDIT FACILITY WHICH WILL BE SUBORDINATE TO THE FACILITY WITH LIVE'S BANK GROUP LIVE ALSO SAID ANTHONY J SCOTTI AN OUTSIDE DIRECTOR OF LIVE SINCE NOVEMBER 1988 WAS APPOINTED CHAIRMAN MR SCOTTI 52 YEARS OLD FILLED A POSITION LEFT VACANT SINCE JUNE WHEN FORMER CHAIRMAN ALAN J HIRSCHFIELD RESIGNED IN ANOTHER CHANGE DAVID A MOUNT 49 CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POSITION OF PRESIDENT A POST THAT HAD BEEN VACANT SINCE JULY THE COMPANY HAD SAID THAT OBTAINING THE CREDIT FACILITIES WAS A CONDITION OF ITS PLANNED RESTRUCTURING UNDER WHICH LIVE PLANS TO OFFER A COMBINATION OF 40 MILLION OF INCREASINGRATE SECURED SENIOR SUBORDINATED NOTES DUE 1998 AND 60 MILLION OF LIQUIDATION PREFERENCE SERIES B CUMULATIVE CONVERTIBLE PREFERRED STOCK AT A SPECIAL MEETING YESTERDAY HOLDERS OF LIVE COMMON STOCK APPROVED AMENDMENTS TO LIVE'S CERTIFICATE OF INCORPORATION NECESSARY TO EFFECT THE RESTRUCTURING 9301220095 930122 FOREIGN EXCHANGE STERLING DROPS ON WEAK ECONOMIC DATA CONTRIBUTING TO GAINS BY THE DOLLAR BY CHARLENE LEE SPECIAL TO THE WALL STREET JOURNAL NEW YORK STERLING TOOK ANOTHER HARD HIT PLUNGING ALMOST TWO PFENNIGS AGAINST THE MARK AS THE LATEST ECONOMIC DATA POINTED TO WEAKNESS IN UK EMPLOYMENT AND INDUSTRIAL PRODUCTION THE POUND'S WEAKNESS HELPED LIFT THE DOLLAR THE US CURRENCY ALSO WAS AIDED BY SHORTCOVERING AFTER AN IMPORTANT PSYCHOLOGICAL FLOOR AT 16000 MARKS PROVED SOLID AND AN EXPECTED DECISION BY BUNDESBANK POLICY MAKERS TO KEEP GERMANY'S OFFICIAL INTEREST RATES AT PRESENT LEVELS IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16138 MARKS AND 12480 YEN UP FROM 16030 MARKS AND 12468 YEN LATE WEDNESDAY STERLING WAS TRADING AT 15225 DOWN 14 FROM 15435 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 16132 MARKS AND 12504 YEN IN CROSS OR NONDOLLAR TRADING THE POUND WAS FETCHING 24570 MARKS WELL BELOW 24742 MARKS LATE WEDNESDAY AND 24914 LATE TUESDAY UK ECONOMIC DATA RELEASED WEDNESDAY AND YESTERDAY COMBINED TO WEAKEN STERLING RATHER DRAMATICALLY THE FIGURES YESTERDAY ACCELERATED THE DOWNTREND THAT WAS ALREADY IN PLACE NOTED EDWARD COOK A VICE PRESIDENT IN NEW YORK AT NATIONAL WESTMINSTER BANK PLC THE INDICATORS BEGINNING WITH WEDNESDAY'S 07 DROP IN DECEMBER RETAIL SALES WHEN A MODEST 04 GAIN HAD BEEN FORECAST FED MARKET SPECULATION THAT THE BANK OF ENGLAND MAY HAVE TO DROP BASE LENDING RATES AS MUCH AS A FULL PERCENTAGE POINT SOON YESTERDAY'S DATA SHOWED THE UNEMPLOYMENT RATE ROSE TO 105 IN DECEMBER FROM 103 IN NOVEMBER AND A 60800JUMP IN THE NUMBER OF JOBLESS LAST MONTH WELL BEYOND FORECASTS OF 30000 TO 40000 ALSO NOVEMBER INDUSTRIAL PRODUCTION FELL 07 FROM THE PREVIOUS MONTH FAR WEAKER THAN ESTIMATES FOR NO CHANGE MANY TRADERS AND ANALYSTS HAD EXPECTED THE UK ECONOMY TO FARE BETTER AFTER STERLING'S WITHDRAWAL FROM EUROPE'S EXCHANGE RATE MECHANISM IN SEPTEMBER LED THE BANK OF ENGLAND TO ALLOW BASE LENDING RATES TO FALL THREE PERCENTAGE POINTS TO 7 BEFORE THE LATEST ECONOMIC DATA THE POUND HAD BEEN SUPPORTED BY A MARKET CONSENSUS THAT THE CENTRAL BANK WOULDN'T PROVIDE FOR MORE THAN A HALFPERCENTAGE POINT CUT IN BASE RATES IN THE FORESEEABLE FUTURE IN ADDITION UK CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT RECENTLY INDICATED THAT NO CHANGE IN THE COUNTRY'S MONETARY STANCE WOULD COME UNTIL AFTER THE MARCH BUDGET STATEMENT STERLING HAS LOST SOME OF ITS ATTRACTION OF BEING OUTSIDE THE RATE MECHANISM NOW THAT SOME OF THE TENSION HAS DISSIPATED OBSERVED THOMAS BENFER SENIOR MARKETING REPRESENTATIVE IN NEW YORK FOR BANK OF MONTREAL TRADERS SAID THE POUND NOW APPEARS HEADED FOR THE 24300MARK LEVEL IN THE NEAR TERM AND THEY ADDED THAT A TEST OF ITS HISTORIC LOW OF 23709 MARKS IS FEASIBLE OVER THE LONGER HAUL DEPENDING ON THE SCOPE AND PACE OF BASE LENDING RATE CUTS PLAYERS HAD SHORTED THE DOLLAR ALL WEEK IN THE RUN UP TO THE COUNCIL'S REGULAR TWICEMONTHLY MEETING BETTING THAT THE BUNDESBANK'S POLICYSETTING BOARD WOULD OPT AGAINST EASING THE COUNTRY'S OFFICIAL INTEREST RATES AFTER THAT BET PROVED TRUE PROFITTAKING ON SHORTDOLLAR POSITIONS LIFTED THE US CURRENCY DEALERS SAID JOHN LYMAN SENIOR CUSTOMER DEALER AT THE BANK OF TOKYO'S NEW YORK AGENCY ARGUED THAT THE RECENT DOLLAR SELLING WAS A NEEDED TECHNICAL CORRECTION AFTER THE CURRENCY SOARED RAPIDLY TO A PEAK 16500 MARKS IN THE FIRST TWO WEEKS OF 1993 MR LYMAN AND OTHER OBSERVERS NOTED THAT THE MARKET HAD GOTTEN AHEAD OF ITSELF IN ITS ANTICIPATION FOR A DOLLAR RALLY EARLY IN 1993 THE KEY IS THE DOLLAR HAS BEEN IN A CORRECTIVE DOWNTREND I DON'T THINK THE UPTREND HAS BEEN DISPROVEN YET HE SAID ADDING I THINK THE LONGER TERM TREND IS STILL HIGHER FOR THE DOLLAR MEANWHILE THE CANADIAN DOLLAR FELL VICTIM TO HEAVY SELLING AND THERE WERE WIDESPREAD BUT UNCONFIRMED REPORTS THAT THE BANK OF CANADA SUPPORTED ITS CURRENCY BY SELLING US DOLLARS AT OR NEAR THE HIGH OF 12874 CANADIAN DOLLARS LATE IN NEW YORK THE US DOLLAR WAS TRADING AT C12853 UP FROM C12814 THE MARKET WAS LOOKING FOR THE CANADIAN DOLLAR TO WEAKEN BECAUSE THE AUSTRALIAN DOLLAR HAD BEEN UNDER TREMENDOUS PRESSURE BANK OF MONTREAL'S MR BENFER SAID REFERRING TO THE AUSTRALIAN UNIT'S PLUMMET EARLY WEDNESDAY TO NEAR SIXYEAR LOWS ONCE REGARDED AS HIGHYIELDING CURRENCIES THE CANADIAN AND AUSTRALIAN DOLLARS FREQUENTLY MOVE IN TANDEM 9301220094 930122 SALOMON CHIEF BACKS FIRMS HIRING OUTSIDE FOR TOP JOB SAN DIEGO ROBERT DENHAM CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SALOMON INC ENDORSED COMPANIES HIRING THEIR TOP EXECUTIVE FROM OUTSIDE THE FIRM THE CHAIRMAN'S FOCUS SHOULD BE ON SHAREHOLDERS HE TOLD A MEETING AT THE SECURITIES REGULATION INSTITUTE HERE IT MAY BE HELPFUL TO HAVE THE CHAIRMAN OR CEO COME FROM OUTSIDE HE SAID DEBATE OVER WHO SHOULD RUN A COMPANY IS INCREASING ESPECIALLY AS INSTITUTIONAL INVESTORS AND OTHER SHAREHOLDER GROUPS ARE BECOMING MORE ACTIVE IN CORPORATE GOVERNANCE MUCH OF THE SHAREHOLDER ACTIVISM IS AIMED AT CORPORATE DIRECTORS MR DENHAM SAID INSTEAD HE SUGGESTED THAT GREATER EMPHASIS SHOULD BE PLACED ON THE ROLE OF CHAIRMAN AND CHIEF EXECUTIVE GET THE JOB DEFINED RIGHT THEN GET THE RIGHT PERSON FOR THE JOB MR DENHAM HIMSELF WAS AN OUTSIDER WHEN HE TOOK THE HELM AT SALOMON IN JUNE AFTER INVESTOR WARREN BUFFETT STEPPED DOWN FOLLOWING THE RESTRUCTURING OF THE FIRM IN THE WAKE OF ITS TREASURY TRADING SCANDAL MR DENHAM WAS AN OUTSIDE COUNSEL TO MR BUFFETT'S BERKSHIRE HATHAWAY INC AND WAS BROUGHT IN AS GENERAL COUNSEL OF SALOMON PRACTICING LAWYERS ARE NOT A BAD POOL TO USE HE ADDED 9301220093 930122 WHAT'S NEWS WORLDWIDE SENATE SUPPORT EBBED FOR CLINTON'S CHOICE FOR ATTORNEY GENERAL ZOE BAIRD FACED MOUNTING OPPOSITION FROM LAWMAKERS AND THE WHITE HOUSE OFFERED THE IMPERILED NOMINEE ONLY TEPID BACKING AT HER CONFIRMATION HEARING BAIRD REJECTED SUGGESTIONS THAT SHE SAVE CLINTON FURTHER EMBARRASSMENT BY STEPPING ASIDE FOR HAVING KNOWINGLY HIRED TWO ILLEGAL ALIENS I THINK THAT MY OVERALL RECORD GIVES ME THE POTENTIAL TO BE A GREAT ATTORNEY GENERAL SHE TESTIFIED LAST NIGHT THE WHITE HOUSE PRESS SECRETARY SAID THAT AT THIS POINT THE PRESIDENT IS STANDING BEHIND HER SENATE STAFF MEMBERS AND CLINTON TRANSITION OFFICIALS WORKING ON THE BAIRD NOMINATION ACKNOWLEDGED THAT WITHOUT STRONG LOBBYING BY THE PRESIDENT HIMSELF THE NOMINATION WOULD FAIL US JETS ATTACKED AN IRAQI RADAR SITE AS CLINTON AFFIRMED AMERICAN POLICY AN IRAQI CEASEFIRE WHICH HAD BEEN PROCLAIMED AS A GOODWILL GESTURE TO THE NEW PRESIDENT BROKE DOWN ON CLINTON'S FIRST DAY IN THE WHITE HOUSE PENTAGON OFFICIALS SAID TWO US PLANES FIRED ON AND BOMBED AN AIRDEFENSE RADAR SITE IN THE NORTHERN NO FLY ZONE OF IRAQ AFTER RADAR WAS TURNED ON THEM AFTER THE INCIDENT CLINTON SAID WE'RE GOING TO STAY WITH OUR POLICY AND SECRETARY OF STATE CHRISTOPHER EMPHASIZED THAT THE US INTENDS TO PROTECT OUR PILOTS IN IRAQ BAGHDAD DENIED IT PROVOKED THE ACTION AND PLEDGED TO UPHOLD THE TRUCE US OFFICIALS WEREN'T CERTAIN IF BAGHDAD WAS TESTING CLINTON'S RESOLVE OR IF THE IRAQI ACTION WAS AN ERROR UN INSPECTORS MEANWHILE ARRIVED IN IRAQ TO RESUME WORK AFTER A TWOWEEK HIATUS PRESIDENT CLINTON WELCOMED THOUSANDS OF VISITORS TO THE WHITE HOUSE YESTERDAY BEFORE MAKING HIS FIRST VISIT TO THE OVAL OFFICE AND HOLDING A MEETING WITH SENIOR AIDES HE IS EXPECTED TO ACT TODAY THE 20TH ANNIVERSARY OF THE SUPREME COURT RULING THAT LEGALIZED ABORTION ON SEVERAL EXECUTIVE ORDERS EXPANDING ABORTION RIGHTS WHITE HOUSE COMPUTERS WERE CRIPPLED AS THE CLINTON STAFF BEGAN ITS FIRST DAY OF WORK IN RESPONSE TO A SPECIAL PROSECUTOR'S SUBPOENA THE DATA STORAGE DEVICES OF THE COMPUTERS HAD BEEN REMOVED IN THE FINAL DAYS OF THE BUSH ADMINISTRATION THE NEW STAFFERS ARRIVED TO FIND GAPING HOLES IN THEIR COMPUTERS BOSNIA'S SERB LEADER DECLARED THAT THE SERBS CANNOT ACCEPT A PROPOSED DIVISION OF BOSNIA INTO 10 PROVINCES WITHOUT HOLDING A REFERENDUM KARADZIC'S COMMENTS CAME A DAY AFTER THE PARLIAMENT REPRESENTING BOSNIAN SERBS RATIFIED THE UN PLAN FOR THE AUTONOMOUS PROVINCES THE CLINTON ADMINISTRATION FACES TRICKY CHOICES IN FILLING THE TOP JOBS AT THREE SCIENCERELATED AGENCIES WHERE HOLDOVERS ALL WANT TO KEEP THEIR POSTS THE AGENCIES ARE NASA THE FDA AND THE NATIONAL INSTITUTES OF HEALTH PLO CHIEF ARAFAT APPEALED TO THE ISRAELI PEOPLE FOR PEACE IN A STATEMENT BROADCAST ON ISRAELI TV HE CALLED UPON ISRAEL'S RABIN TO AGREE TO A DIRECT MEETING WITH LEADERS OF HIS PALESTINE LIBERATION ORGANIZATION DESPITE ISRAEL'S REPEAL TUESDAY OF A LAW BANNING INFORMAL CONTACTS BY ISRAELIS WITH THE PLO RABIN REJECTS DIRECT NEGOTIATIONS A DANISH TANKER CAUGHT FIRE AND BEGAN TO SPEW OIL INTO THE SEA AFTER COLLIDING WITH AN EMPTY TANKER OFF THE NORTHERN COAST OF INDONESIA THE 24MEMBER CREW OF THE VESSEL WHICH WAS CARRYING 78 MILLION GALLONS OF CRUDE WAS EVACUATED THE ACCIDENT WAS THE THIRD MAJOR MISHAP INVOLVING TANKERS SINCE EARLY DECEMBER THE UN AND OAS ARE NEARING THE COMPLETION OF A PLAN FOR DEPLOYING OBSERVERS IN HAITI ACCORDING TO UN SPECIAL ENVOY DANTE CAPUTO HE SAID THE MOVE WOULD PAVE THE WAY FOR TALKS WITH HAITI'S MILITARYBACKED REGIME AIMED AT RESTORING OUSTED PRESIDENT ARISTIDE TO POWER RUSSIA AND UKRAINE FAILED TO RESOLVE DIFFERENCES OVER HOW TO CONTROL THEIR NUCLEAR ARMS ON THE EVE OF A COMMONWEALTH OF INDEPENDENT STATES PRESIDENTIAL SUMMIT BUT OFFICIALS FROM EACH COUNTRY INDICATED THEY WERE WILLING TO COMPROMISE ON SOME ISSUES IF THE OTHER SIDE DID THE SAME GERMAN LAWMAKERS TOOK THEIR FIRST STEP TOWARD WATERING DOWN THE NATION'S LIBERAL ASYLUM POLICY AS THE PROPOSED LEGISLATION HAD ITS FIRST READING IN PARLIAMENT'S LOWER HOUSE THE MEASURE WOULD GUARANTEE THE RIGHT TO ASYLUM ONLY IF A REFUGEE IS FACING POLITICAL PERSECUTION AT HOME 9301220092 930122 MARKETING BRIEF NOTED NEWSPAPERS THE CHICAGO SUNTIMES WHICH LAST SEPTEMBER STUCK WITH ITS 35CENT NEWSSTAND PRICE AFTER THE RIVAL CHICAGO TRIBUNE OWNED BY TRIBUNE CO RAISED ITS PRICE TO 50 CENTS SAID CIRCULATION CLIMBED 5 IN THE THREE MONTHS ENDED DEC 27 THE NEWSPAPER CLAIMED THAT THE INCREASE TO AN AVERAGE DAILY CIRCULATION OF 558738 WAS THE LARGEST RISE IN CIRCULATION BY ANY CHICAGO NEWSPAPER IN 15 YEARS THE SUNDAY SUNTIMES'S CIRCULATION CLIMBED 12 DURING THE 13WEEK PERIOD TO 551727 9301220091 930122 WHO'S NEWS OLYMPIA & YORK'S REICHMANN SEEKS BACKERS FOR PROPERTY INVESTMENT FUND BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO PAUL REICHMANN STILL RECOVERING FROM THE COLLAPSE OF HIS OLYMPIA & YORK REAL ESTATE EMPIRE IS TRYING TO LINE UP BACKERS FOR A PROPERTY INVESTMENT FUND IN THE HOPES OF RESTORING HIS IMAGE AND AT LEAST SOME OF HIS FORTUNE PEOPLE KNOWLEDGEABLE ABOUT THE SITUATION SAID MR REICHMANN AND SEVERAL BUSINESS ASSOCIATES ARE IN THE EARLY STAGES OF PULLING IN AS MUCH AS US500 MILLION TO RECAPITALIZE A FUND TO INVEST IN REAL ESTATE OPPORTUNITIES IN NORTH AMERICA AND ABROAD EVEN AS THE OLYMPIA & YORK DEVELOPMENTS LTD DEBACLE CONTINUES TO UNFOLD MR REICHMANN IS APPROACHING POTENTIAL BACKERS IN SEARCH OF THE FIRST 200 MILLION TO 300 MILLION TO LAUNCH THE NEW VENTURE HOWEVER MR REICHMANN MAY HAVE TO RELY MOSTLY ON FRIENDS TO RAISE MONEY AND WILL BE MONITORED BY INVESTORS AND OTHER PARTNERS ANDREW SARLOS A TORONTO FINANCIER WHO IS WORKING WITH MR REICHMANN ON THE PROPOSED VENTURE SAID IT WILL TAKE A FEW MONTHS BEFORE THE GROUP IDENTIFIES A POSSIBLE INVESTMENT PROJECT BUT MR SARLOS AND OTHERS KNOWLEDGEABLE ABOUT THE VENTURE SAY ANY FORMAL AGREEMENTS MUST AWAIT O&Y'S EXPECTED EMERGENCE EARLY NEXT MONTH FROM CANADIAN BANKRUPTCYLAW PROTECTION MR REICHMANN'S CAREER CHANGE FOLLOWS THE INSOLVENCY OF O&Y WHICH MR REICHMANN WHO IS 62 AND HIS TWO BROTHERS BUILT OVER THE PAST THREE DECADES INTO A 20 BILLION INTERNATIONAL REAL ESTATE GIANT NOW HOWEVER THE REICHMANN FAMILY ESSENTIALLY PLANS TO HAND CONTROL OF O&Y AND ITS ASSETS TO THE COMPANY'S CREDITORS AS PART OF ITS PLAN TO RESTRUCTURE THE DEBT RELATED TO ITS CANADIAN OPERATIONS THE PLAN IS EXPECTED TO GET FORMAL APPROVAL FROM O&Y'S BIG UNSECURED CREDITOR GROUP AT A MEETING SCHEDULED FOR MONDAY MR REICHMANN LONG CONSIDERED THE CHIEF STRATEGIST AT O&Y ALREADY HAS SAID HIS GOODBYES TO A NUMBER OF THE COMPANY'S CLOSEST BANKERS IN TORONTO AND NEW YORK IN VISITS MADE LATE LAST MONTH MR REICHMANN TOLD THESE LENDERS THAT HE PLANS TO SEVER ANY MEANINGFUL TIES WITH O&Y AND INSTEAD WOULD EXPLORE OTHER VENTURES A SPOKESMAN FOR MR REICHMANN SAID HE'S LOOKING AT A WIDE RANGE OF OPPORTUNITIES WITHIN THE REAL ESTATE BUSINESS THE SPOKESMAN SAID O&Y'S CREDITORS OFTEN BLAME THE COLLAPSE OF THE COMPANY ON MR REICHMANN'S OVERARCHING AMBITION TO BUILD A NEW FINANCIAL CENTER KNOWN AS CANARY WHARF IN LONDON'S DOCKLANDS REDEVELOPMENT ZONE THE 6 BILLION PROJECT WHICH SWALLOWED AS MUCH AS 40 MILLION A MONTH WHILE CONSTRUCTION WAS UNDER WAY CURRENTLY SITS 40 VACANT IT HAS BEEN PLACED UNDER COURT ADMINISTRATION IN BRITAIN NOW PEOPLE CLOSE TO MR REICHMANN SAY HE IS LIKELY ONLY TO GET FINANCIAL BACKING FROM SOME OF HIS CLOSE FRIENDS AND BUSINESS ASSOCIATES EVEN THEN POTENTIAL INVESTORS WANT TO KEEP MR REICHMANN SUBJECT TO CHECKS AND BALANCES UNABLE TO MAKE MAJOR BUSINESS DECISIONS WITHOUT CONSULTING HIS NEW PARTNERS IN THE PAST BECAUSE OF O&Y'S SUCCESSES IN TORONTO AND NEW YORK NOBODY DARED TO BRING UP THE OBJECTIONS OR CONTROLS BECAUSE MR REICHMANN THOUGHT HE COULD WALK ON WATER MR SARLOS SAID STILL MR SARLOS SAID HE WOULD BE MORE THAN PLEASED TO BACK THE PROPOSED INVESTMENT FUND BECAUSE OF MR REICHMANN'S REAL ESTATE EXPERTISE THEY THE REICHMANNS HAVE A VERY GOOD NOSE THEY WERE THERE WHEN NEW YORK REAL ESTATE WAS A BASKET CASE AND THEY MADE A FORTUNE BUYING IT I FEEL THEY CAN DO IT AGAIN MR SARLOS SAID THE FINANCIER A LONGTIME ASSOCIATE OF THE REICHMANNS WOULDN'T IDENTIFY ANY OF THE OTHER POSSIBLE INVESTORS IN THE FUND HE SAID THE PLAN WOULD BE TO RECAPITALIZE AN EXISTING FUND THAT IS MANAGED BY SOMEONE I KNOW VERY WELL MR SARLOS SAID HE EXPECTS THE FUND AT FIRST WOULD LOOK FOR OPPORTUNITIES TO BUILD NEW REAL ESTATE PROJECTS IN UNDERDEVELOPED COUNTRIES OF EASTERN EUROPE LATIN AMERICA AND THE PACIFIC RIM EVENTUALLY THE FUND MIGHT ALSO INVEST IN DISTRESSED PROPERTIES IN THE US AND CANADA ALTHOUGH MR SARLOS FEELS THE COMMERCIAL REAL ESTATE MARKET IN NORTH AMERICA HAS FARTHER TO FALL ALTHOUGH HE IS UNDERSTOOD STILL TO BE LIVING A COMFORTABLE LIFESTYLE ASSOCIATES SAY MR REICHMANN IS EAGER TO REPLENISH SOME OF HIS FAMILY'S VAST WEALTH WHICH WAS PEGGED BY FORTUNE MAGAZINE AT NEARLY 13 BILLION A YEAR AND A HALF AGO FOR ONE THING THE REICHMANN FAMILY IS BELIEVED TO HAVE MADE CHARITABLE CONTRIBUTIONS OF AS MUCH AS 50 MILLION TO 100 MILLION A YEAR DURING O&Y'S HEYDAY 9301220090 930122 DELTA WOODSIDE ACQUIRES NAUTILUS STAKE IN FIRM GREENVILLE SC DELTA WOODSIDE INDUSTRIES INC SAID IT ACQUIRED NAUTILUS INTERNATIONAL INC AS WELL AS A CONTROLLING INTEREST IN APPAREL MARKETING CORP HOLDER OF THE NAUTILUS BRAND NAME FOR APPAREL TERMS WEREN'T DISCLOSED NAUTILUS BASED IN INDEPENDENCE VA IS A CLOSELY HELD MAKER OF FITNESS EQUIPMENT IN 1992 THE COMPANY HAD AN ESTIMATED 18 MILLION IN SALES ACCORDING TO KAY NORWOOD AN ANALYST WITH INTERSTATE/JOHNSON LANE IN CHARLOTTE NC DELTA WOODSIDE A FABRIC AND APPAREL MAKER SAID IT ACQUIRED 70 OF THE SHARES OF APPAREL MARKETING BASED IN NEW YORK NAUTILUS AND APPAREL MARKETING WILL OPERATE AS DIVISIONS OF DELTA WOODSIDE WHILE BESTKNOWN FOR ITS EXERCISE EQUIPMENT THE NAUTILUS NAME COULD GIVE DELTA WOODSIDE A TOEHOLD IN THE LUCRATIVE FITNESSCLOTHING BUSINESS ANALYSTS SAID NAUTILUS WAS ATTRACTIVE TO DELTA WOODSIDE BECAUSE OF ITS GROWTH POTENTIAL SAID JANE H GREER DELTA WOODSIDE VICE PRESIDENT DELTA WOODSIDE MAKER OF THE DUCK HEAD LINE OF CASUAL CLOTHING ALSO WANTED A RECOGNIZABLE TRADE NAME TO ADD TO ITS ROSTER MS GREER SAID IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DELTA WOODSIDE SHARES CLOSED AT 1525 UP 125 CENTS 9301220089 930122 TECHNOLOGY CELLPRO INC LAUNCHES TWO TRIALS OF SYSTEM FOR BLOOD SEPARATION SEATTLE CELLPRO INC SAID IT LAUNCHED TWO CLINICAL TRIALS OF ITS BLOOD CELL SEPARATION SYSTEM FOR USE IN CONJUNCTION WITH HIGHDOSE CANCER CHEMOTHERAPY THE BIOTECHNOLOGY COMPANY SAID ITS CEPRATE SC STEM CELL CONCENTRATION SYSTEM IS DESIGNED TO ISOLATE VERSATILE BLOOD CELLS KNOWN AS STEM CELLS THESE PRIMITIVE CELLS THE PROGENITORS OF ALL THE RED AND WHITE BLOOD CELLS OF THE BODY ARE REINFUSED IN CANCER PATIENTS TO RESTORE HEALTHY BLOOD COUNTS AND STRONG IMMUNE DEFENSES AFTER THE TOXIC EFFECTS OF CHEMOTHERAPY DRUGS THE TRIALS ARE NOW UNDER WAY AT TWO SITES THE COMPANY SAID AT ST LOUIS UNIVERSITY MEDICAL CENTER IN ST LOUIS MO DOCTORS ARE TESTING THE TECHNIQUE IN PATIENTS WITH BREAST CANCER AND LYMPHOMA AT ALBERTLUDWIGS UNIVERSITY MEDICAL CENTER IN FREIBURG GERMANY THE RESEARCH CENTERS ON SMALLCELL LUNG CANCER NONHODGKIN'S LYMPHOMA BREAST CANCER AND OTHER MALIGNANCIES STEMCELL THERAPY IS BEING WIDELY TESTED AS A NONINVASIVE ALTERNATIVE TO THE CURRENT PRACTICE OF AUTOLOGOUS BONE MARROW TRANSPLANT IN BONE MARROW TRANSPLANTS CERTAIN CANCER PATIENTS HAVE THEIR OWN BONE MARROW EXTRACTED AND FROZEN AND LATER REINFUSED TO COUNTER THE MARROWDAMAGING EFFECTS OF HIGHDOSE CHEMOTHERAPY 9301220088 930122 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 2 7/8 LOW 3 1/16 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 89 DAYS 313 90 TO 119 DAYS 317 120 TO 149 DAYS 320 150 TO 179 DAYS 325 180 TO 239 DAYS 332 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 316 30 DAYS 318 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 273 TWO MONTHS 278 THREE MONTHS 288 SIX MONTHS 321 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 309 ONE MONTH 315 THREE MONTHS 327 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 307 60 DAYS 309 90 DAYS 315 120 DAYS 318 150 DAYS 319 180 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 3/8 3 1/2 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 7/8 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 725 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 313 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 781 60 DAYS 788 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 775 60 DAYS 784 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 555 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 9301220087 930122 ANYWHERE BUT GERMANY BY AMITY SHLAES AT DAIMLER AND EVERYWHERE ELSE IN GERMANY LABOR COSTS REPRESENT A GROWING DRAG ON BUSINESS AS THE NATION ENTERS RECESSION AT SOME 25 AN HOUR THE PRICE FOR LABOR AND ATTENDANT SOCIAL COSTS IN GERMANY IS THE HIGHEST IN THE WORLD AND GERMANY'S POWERFUL UNIONS ARE PUSHING TO ENSURE THAT EASTERN GERMAN LABOR COSTS REACH THOSE IN THE WEST BY 1995 DESPITE LAGGING INCREASES IN PRODUCTIVITY CHANCELLOR HELMUT KOHL'S GOVERNMENT IS SO CONCERNED THAT IT HAS INVITED UNIONS EMPLOYERS AND OPPOSITION POLITICAL PARTIES TO THE NEGOTIATING TABLE IN HOPES OF FORGING AN UNUSUAL NATIONAL SOLIDARPAKT OR SOLIDARITY PACT ON THE ECONOMY CONSENSUS HAS WORKED WELL BEFORE IN GERMANY FOR DECADES GERMANS GLOATED WHEN THEY COMPARED THEIR LABOR SUCCESSES WITH THE COSTLY PROBLEMS OF STRIKEPLAGUED BRITAIN BUT THE AGREEMENT TOWARD WHICH GERMANY IS MUDDLING THIS TIME HIGHER TAXES AND A HIKE IN WAGES MAY DO PERMANENT DAMAGE TO THE NATION'S INTERNATIONAL COMPETITIVENESS THE REASON IS SIMPLE WITH THE IRON CURTAIN DOWN GERMAN COMPANIES ARE RACING INTO HAVENS WHERE LABOR GOES FOR ONEFIFTH OR ONETENTH THE PRICE SUCH AS HUNGARY AND THE CZECH REPUBLIC GERMAN HEADLINES READ FOREIGN LANDS TEMPT GERMAN CAPITAL AFTER THE WAR GERMANS WERE POOR AND WORKED TOGETHER BECAUSE THEY KNEW THERE WAS NO RICH UNCLE TO SAVE THEM SAYS THOMAS MAYER A FRANKFURTBASED ECONOMIST WHO WATCHES GERMANY FOR GOLDMAN SACHS BUT TODAY GERMANY IS AFFLUENT AND THAT CONSENSUS HAS TURNED INTO A FIGHT FOR GOVERNMENT REVENUES MR MAYER THINKS THE SOLIDARITY PACT IS IN REALITY A MERE PACT TO GET MORE MONEY FROM THE TAXPAYER HIS VIEW ON ITS MEANING SEVEN HARD YEARS FOR GERMANY TO UNDERSTAND MR KOHL'S SOLIDARPAKT EFFORT IT HELPS TO REVIEW THE POWERFUL ROLE OF CONSENSUS IN POSTWAR GERMANY AFTER THE WAR UNIONS AND COMPANIES WORKED TOGETHER TO BUILD THE ECONOMIC MIRACLE PARLIAMENT INSTITUTIONALIZED SUCH COOPERATION WHEN IT PASSED A 1974 LAW THAT PUT LABOR REPRESENTATIVES ON THE BOARDS OF GERMAN COMPANIES IN EARLIER TIMES THREATS AND DRUMBEATING WERE PREREQUISITES FOR SUCCESSFUL NEGOTIATION THIS ROUND OF TALKS WILL PROBABLY BE NO DIFFERENT IN THE ODD WORLD OF GERMAN CONSENSUS GRAY MEN IN ONE HIGHRISE BUILDING THE UNION HEADQUARTERS IN DUESSELDORF GRIPE ABOUT GERMANY'S CENTRAL BANK IF INTEREST RATES WERE LOWER WE WOULDN'T HAVE THIS PROBLEM ONE SAYS POINTEDLY GRAY MEN IN ANOTHER HIGHRISE BUILDING THE BUNDESBANK IN FRANKFURTRETORT THAT PRESSURE TO RAISE WAGES MUST LOOSEN BEFORE INTEREST RATES CAN GRAY MEN IN A THIRD SET OF SLIGHTLY SMALLER BUILDINGSTHE RHINESIDE PARLIAMENT OFFICES IN BONN THEN WORK ON THE DEAL THIS TIME THE GOVERNMENT HAS OFFERED TO RESTORE A 10 SURCHARGE ON CITIZENS' INCOME TAX BILL AND TO CUT SOCIAL SPENDING IF LABOR WILL PROMISE TO HALT REAL WAGE GROWTH THE UNIONS AND THE OPPOSITION SOCIAL DEMOCRATIC PARTY THIS WEEK TURNED THEIR NOSES UP AT THAT OFFER CALLING IT A PLAN WITHOUT SOCIAL CONSCIENCE BUT THEIR OWN PROPOSAL OF UP TO 5 WAGE INCREASES WHAT THEY CALL ENOUGH TO KEEP UP WITH 4 INFLATION WILL LIKELY REDUCE JOBS AND THE TAX BASE IN GERMANY IT JUST WON'T BE ENOUGH SAYS MR MAYER OF GOLDMAN SACHS TO GET COMPETITIVE GERMANY HAS TO LOWER LABOR COSTS IN REAL TERMS THE WAY AMERICA DID IN THE 1980S THE SOLIDARPAKT QUANDARY IS IN LARGE PART THE CONSEQUENCE OF A COSTLY POLICY LAUNCHED THREE YEARS AGO AS GERMANY PREPARED FOR REUNIFICATION TO WIN VOTERS IN THE EAST MR KOHL PROMISED THAT NO ONE WOULD BE WORSE OFF THAN BEFORE TO DELIVER ON THAT PROMISE BONN HAS SPENT SOME 100 BILLION A YEAR IN DIRECT TRANSFERS TO EASTERN GERMANY THAT GRANDSCALE KEYNESIAN GESTURE PRODUCED A MOMENTARY GLOW OF PROSPERITY AND WAGE INCREASES THAT MEANT UNITLABOR COSTS HAVE RISEN 5 A YEAR SINCE 1990 THE UNIONS FOR THEIR PART ZOOMED INTO EASTERN GERMANY AND PROMISED WAGE PARITY WITH THE WEST BY 1995 BOTH GROUPS INDEED ALL MAJOR GERMAN POLITICAL PARTIES AND UNIONS ARE NOW LOSING MEMBERSHIP IN THE EAST THEIR RESPONSE YET MORE PROMISES TO WORKERS THE RESULT IN ANY CASE HAS BEEN AN INCREASINGLY TROUBLED OUTLOOK FOR WHAT GERMANS CALL STANDORT DEUTSCHLAND OR LOCATION GERMANY GERMAN COMPANIES EXPANDED MORE ABROAD THAN THEY DID IN GERMANY IN THE LAST FIVE YEARS SAYS ULRICH RAMM ECONOMIST FOR COMMERZBANK ONE OF THE NATION'S LARGER BANKS THE MOVE ABROAD IS EVIDENT IN A LOT OF PLACES HALF OF THE NEW VENTURES IN THE CZECH REPUBLIC MR RAMM NOTES ARE IN PARTNERSHIPS WITH GERMANS NOWHERE IS THE OUTFLOW MORE OBVIOUS THAN WITH GERMANY'S BIG AUTO MAKERS TO BE SURE THESE COMPANIES FACE OTHER PROBLEMS DAIMLER FOR EXAMPLE IS OVERDIVERSIFIED AND ALL GERMAN AUTO MAKERS LIKE THOSE THE WORLD OVER ARE SEEING A DROP IN DEMAND THE CAR COMPANIES ARE BUILDING IN EASTERN GERMANY GERMAN ECONOMISTS LIKE TO CITE WITH PRIDE THE EXAMPLE OF A NEW SUPERPRODUCTIVE PLANT GM'S OPEL HAS BUILT IN THE EASTERN GERMAN TOWN OF EISENACH BUT SUCH NEW PROJECTS TAKE TIME TO DEVELOP AND WITH NATIONAL ELECTIONS COMING NEXT YEAR THE PRESSURE FROM VOTERS TO CONTINUE SUBSIDIES TO OLDER LESS PRODUCTIVE PLANTS IS INTENSE WHILE BUSINESSMEN SUCH AS THE RETIRED HEAD OF VOLKSWAGEN CARL HAHN SPEAK WITH A TONE OF DUTY ABOUT THEIR WORK IN EASTERN GERMANY ENTHUSIASM ENTERS THEIR VOICES ONLY WHEN THEY TALK ABOUT VENTURES IN PLACES LIKE THE CZECH REPUBLIC VOLKSWAGEN TOOK OVER THE TRABANT FACTORIES IN ZWICKAU IN EASTERN GERMANY BUT IT ALSO BOUGHT THE CZECH CAR COMPANY SKODA AT YEAR'S END AUDI A SUBSIDIARY OF VOLKSWAGEN ANNOUNCED IT WAS CUTTING 3000 TO 4000 JOBS THROUGHOUT GERMANY NEARLY SIMULTANEOUSLY AUDI ALSO ANNOUNCED THE OPENING OF ITS FIRST FULLY OWNED CARPARTS BUSINESS OUTSIDE GERMANYA FACTORY EMPLOYING ABOUT 200 WORKERS IN GYOR HUNGARY IT NAMED VALUE READ LABOR COSTS AMONG ITS REASONS FOR THE CHOICE AROUND THE SAME TIME DAIMLER ANNOUNCED IT WAS POSTPONING A PLAN TO BUILD A TRUCK FACTORY IN THE EASTERN GERMAN TOWN OF AHRENSDORF FOR BMW LABOR COSTS TOO WERE A DETERMINING FACTOR IN A DECISION EARLIER LAST YEAR TO SITE A NEW FACTORY IN SPARTANBURG SC THERE ARE OF COURSE OTHER FACTORS THAT DRIVE OUT GERMAN BUSINESS HIGH TAXES ARE ONE THIS YEAR THE GOVERNMENT HAS ALREADY DONE ITS BIT TO DAMP DEMAND BY RAISING THE NATION'S VALUEADDED TAX TO 15 FROM 14 IN THE NAME OF HARMONIZING WITH QL03040031OTHER EUROPEAN COMMUNITY COUNTRIES STRONG ENVIRONMENTAL REGULATION IS ANOTHER PROBLEM THE VERBAND DER CHEMIE INDUSTRIE A CHEMICAL INDUSTRY LOBBY WARNED IN A PRESS RELEASE RECENTLY THATWITHOUT A THOROUGH DEREGULATION OF A LAW REGULATING ITS PRODUCTION LOCATION GERMANY' IS LOSING ITS LAST CHANCE TO CREATE AND SECURE JOBS IN THE CHEMICAL INDUSTRY IN GERMANY A WEAKER MARK TOO WOULD DO A LOT FOR THE POSITION OF AN EXPORT ENGINE LIKE GERMANY IF THE EXCHANGE RATE WERE 22 INSTEAD OF 16 MARKS TO THE DOLLAR SAYS ONE OF THE GRAY UNIONISTS DREAMILY NO ONE WOULD RAISE THE ISSUE OF LABOR COSTS BUT THE BUNDESBANK WHILE SHOWING SIGNS OF LOOSENING IS NOT LIKELY TO GO THAT FAR EVEN IF GERMANY'S RECESSION LIFTS BY THE END OF THE YEAR THE ENVIRONMENT FOR BUSINESS IS UNLIKELY TO IMPROVE MR KOHL HAS LATELY PROLONGED THE NATION'S REDISTRIBUTIONIST FRENZY BY PERFORMING A UTURN ON THE QUESTION OF INDUSTRIAL POLICY WITH A NEW PROMISE TO PRESERVE THE JOBS AND STRUCTURES OF EASTERN GERMANY'S REMAINING UNPRIVATIZED INDUSTRIAL CORE THE IRONY HERE IS THAT THE BIGGEST CASUALTIES OF THIS PATTERN OF SUBSIDY ARE PRECISELY THE PEOPLE WHOM THOSE CREATING IT HOPE TO HELP MILLIONS OF UNDEREMPLOYED EASTERN GERMANS CONFRONTED WITH EXPENSIVE LABOR IN EASTERN GERMANY GERMAN BUSINESSES JUST WORK HARDER TO DEVELOP TECHNOLOGY THAT CAN DO THE SAME TASK WITH FEWER EASTERN GERMANS BY ENCOURAGING EASTERN GERMANS TO DEMAND EQUAL PAY BEFORE THEY APPROACH LEVELS OF EQUAL PRODUCTIVITY THE GOVERNMENT DEPRIVES THOSE WORKERS OF A CHANCE TO LEARN TO COMPETE INTERNATIONALLY GERMANS WITH MORE POWERFUL POLITICAL INFLUENCE THE GRAY MEN ARE GREAT BELIEVERS IN THE BUSINESS CYCLE THEY GENERALLY CROSS THEIR FINGERS AND ARGUE THAT WITH A LITTLE HELP FROM WHAT THEY TERM BILL CLINTON'S BOOM WORLDWIDE DEMAND WILL PUSH GERMANY OUT OF ITS TROUBLES BY THE END OF THE YEAR BUT THEY ALSO ACKNOWLEDGE THAT THE WORK OF FORGING THIS YEAR'S CONSENSUS IS ACTUALLY TEARING AT THE FABRIC OF GERMAN SOCIETY RESPONDING TO A WRITTEN QUERY FROM THIS NEWSPAPER DAIMLERBENZ CHAIRMAN EDZARD REUTER WRITES THAT MORE INVESTMENT IN EASTERN GERMANY IS NECESSARY BUT ALSO THAT A LARGE PART OF THOSE RESPONSIBLE IN THE UNIONS AND COMPANIES ARE STICKING THEIR HEADS IN THE SAND AND APPEAR TO WANT TO MEET THE CHALLENGES WITH THE HABITUAL RITUALS OF THE PAST AS WORK ON THE SOLIDARITY PACT PROGRESSED MR REUTER CONCENTRATED ON HIS TROUBLED COMPANY AND A COMING TRIP TO WIDEN PRODUCTION IN A WARMER BUSINESS ENVIRONMENT MEXICO MISS SHLAES IS THE JOURNAL'S EDITORIAL FEATURES EDITOR 9301220086 930122 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION GENERAL NUTRITION COS AN INITIAL OFFERING OF 44 MILLION COMMON SHARES VIA MORGAN STANLEY & CO PROCEPT INC AN INITIAL OFFERING OF 18 MILLION COMMON SHARES VIA KIDDER PEABODY & CO AND TUCKER ANTHONY INC VERTEX COMMUNICATIONS CORP AN OFFERING OF ONE MILLION COMMON SHARES WILLIAM K WOODRUFF & CO YORK INTERNATIONAL CORP AN OFFERING OF 100 MILLION OF SENIOR NOTES VIA MORGAN STANLEY & CO AND JP MORGAN SECURITIES INC 9301220085 930122 TECHNOLOGY NEXT INC CITING ITS WORKSTATION SALES POSTS FIRST QUARTERLY OPERATING PROFIT BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL NEXT COMPUTER INC HELPED BY GROWING SALES OF ITS COMPUTER WORKSTATION SYSTEMS POSTED ITS FIRST QUARTERLY OPERATING PROFIT BUT MAY STILL FACE A LIFETHREATENING BATTLE FOR CORPORATE CUSTOMERS NEXT THE BRAINCHILD OF APPLE COMPUTER INC COFOUNDER STEVEN P JOBS HOPES TO SPARK CONTINUED SALES GROWTH THIS SUMMER AT THAT TIME THE COMPANY PLANS TO BEGIN SELLING A VERSION OF ITS OPERATING SYSTEM SOFTWARE CALLED NEXTSTEP WHICH WILL RUN ON PERSONAL COMPUTERS USING INTEL CORP'S 486 CHIP SAID PETER VAN CUYLENBURG NEXT'S PRESIDENT AND CHIEF OPERATING OFFICER UNTIL NOW NEXT'S OPERATING SYSTEM RAN ONLY ON ITS OWN LINE OF WORKSTATIONS WHICH USE A MOTOROLA INC CHIP CLOSELY HELD NEXT POSTED FOURTHQUARTER OPERATING PROFIT OF SLIGHTLY LESS THAN 1 MILLION ON A 36 RISE IN REVENUE TO 45 MILLION FROM 33 MILLION A YEAR EARLIER THE 1992 QUARTER'S RESULTS WERE STILL WELL BELOW THE 50 MILLION IN SALES THE COMPANY HAD PROJECTED IN EARLY 1991 FOR ITS 1991 FOURTH QUARTER MR VAN CUYLENBURG WOULDN'T SAY WHETHER THE REDWOOD CITY CALIF COMPUTER MAKER HAD NET INCOME OR A NET LOSS FOR THE QUARTER HE SAID THAT THE DIFFERENCE BETWEEN NEXT'S OPERATING PROFIT AND NET EARNINGS WAS PRIMARILY THE COST OF PAYING INTEREST ON LOANS HE ADDED THAT THE COMPANY DID HAVE A NET LOSS FOR THE YEAR BUT HE DECLINED TO DISCLOSE THE AMOUNT MR VAN CUYLENBURG CREDITED THE COMPANY'S SALES GROWTH TO ITS INCREASING EMPHASIS ON DIRECT SALES TO CORPORATE CUSTOMERS NEXT'S SALES FORCE PRACTICALLY NONEXISTENT IN 1991 HAS GROWN TO ABOUT 100 EMPLOYEES IN NORTH AMERICA HE SAID PRIOR TO THE BUILDUP OF ITS SALES FORCE NEXT'S REVENUE WAS HAMPERED BY ITS OVERRELIANCE ON THIRDPARTY DISTRIBUTORS AND INDEPENDENT DEALERS HE SAID THAT RESULTED IN SALES THAT WERE MUCH LOWER THAN EXPECTED A YEAR AGO MR VAN CUYLENBURG SAID NEXT HAS BEEN BATTLING OTHER WORKSTATION MAKERS SUCH AS HEWLETTPACKARD CO AND SUN MICROSYSTEMS INC FOR THE LUCRATIVE WORKSTATION MARKET BUT PRICES OF WORKSTATIONS HAVE BEEN DROPPING RAPIDLY EVEN THOUGH THEIR PERFORMANCE HAS BEEN SOARING MAKING IT HARDER FOR WORKSTATIONS MAKERS TO MAINTAIN PROFIT MARGINS THE INCREASINGLY COMPETITIVE MARKET IS PUTTING PRESSURE ON NEXT TO EMPHASIZE ITS HIGHER MARGIN SOFTWARE BUSINESS WHILE UNLOADING ITS HARDWARE BUSINESS MANY ANALYSTS SAY NEXT'S REAL BREAD AND BUTTER IS THEIR SOFTWARE SAID NANCY BATTEY AN ANALYST WITH INTERNATIONAL DATA CORP A MARKET RESEARCH FIRM THE QUESTION IS CAN THEY CONTINUE AS A HARDWARE VENDOR MR VAN CUYLENBURG WOULDN'T COMMENT ON ANY SPECULATION THAT NEXT IS PHASING OUT ITS HARDWARE BUSINESS THERE HAVE BEEN PERSISTENT RUMORS THAT NEXT HAS REACHED AN AGREEMENT TO LICENSE ITS SOFTWARE TO HEWLETTPACKARD HOWEVER MR VAN CUYLENBURG WOULDN'T COMMENT ON THOSE REPORTS 9301220084 930122 THE AMERICAS WHY CHILE'S ECONOMY ROARED WHILE THE WORLD'S SLUMBERED BY CARLOS SINGER SINCE 1850 CHILE HAS SUFFERED 22 RECESSIONS IN 19 OF THESE THE US ENTERED INTO A RECESSION FIRST AND CHILE FOLLOWED USUALLY AFTER ONE OR TWO QUARTERS BY HISTORICAL STANDARDS THEN CHILE PROBABLY SHOULD BE IN A RECESSION NOW AND SHOULD HAVE BEEN IN ONE FOR THE PAST YEAR OR SO NEVERTHELESS GROSS NATIONAL PRODUCT HAS GROWN BY AN AVERAGE OF 65 A YEAR SINCE 1984 AND IN 1992 THE ECONOMY GREW AT CLOSE TO 10 THIS YEAR GROWTH IS EXPECTED TO BE IN THE 6 RANGE MOREOVER THIS GROWTH HAS BEEN MAINTAINED WHILE RUNNING A GOVERNMENT SURPLUS INCREASING EXPENDITURES ON HEALTH EDUCATION AND HOUSING CONTROLLING INFLATION AND MAINTAINING MACROECONOMIC BALANCES THAT ARE THE ENVY OF DEVELOPING AND DEVELOPED NATIONS ALIKE CHILE TODAY RESEMBLES THE WEST GERMANY OF KONRAD ADENAUER AND LUDWIG ERHARD PER CAPITA INCOME APPROACHES 3000 CLOSE TO THE INCOME LEVELS OF KOREA AND PORTUGAL HOW CAN A LATIN AMERICAN COUNTRY GROW AND DOUBLE PER CAPITA INCOME IN AN INTERNATIONAL ENVIRONMENT AS UNFAVORABLE AS THE ONE THAT EXISTS TODAY KEY REFORMS FROM 1975 TO 1985 SET THE STAGE FOR TAKEOFF FINANCIAL MARKETS WERE DEREGULATED SAVINGS VEHICLES WERE CREATED IN THE FORM OF OBLIGATORY INDIVIDUAL RETIREMENT ACCOUNTS REPLACING THE GOVERNMENT'S SOCIAL SECURITY SYSTEM THE LOWERING OF TARIFFS OPENED THE ECONOMY TO STRONG INTERNATIONAL COMPETITION COSTLY SUBSIDIES WERE ELIMINATED NEARLY ALL STATE ENTERPRISES WHICH AT THE TIME REPRESENTED THE BACKBONE OF THE ECONOMY WERE SOLD OFF REALISTIC EXCHANGE RATES WERE SET TO PROMOTE EXPORTS INTEREST RATES WERE SET BY THE MARKETS AND WAGES WERE SET BY THE AVAILABLE SUPPLY OF LABOR IN SHORT CHILE IS REAPING THE BENEFITS OF TOUGH ECONOMIC DECISIONS TAKEN OVER THE PAST 15 YEARS IF ONE ECONOMIC FACTOR HAD TO BE ISOLATED TO ACCOUNT FOR CHILE'S GROWTH IT WOULD BE THE DIVERSIFICATION OF PRODUCTS MARKETS AND PRODUCERS THE ECONOMY HAS BEEN OPENED WIDE TO THE WORLD CHILE'S EXPORTS REPRESENT 35 OF GNP AND IMPORTS 30 THE VOLUME OF TRADE AS A PERCENTAGE OF GNP IS HIGHER THAN KOREA JAPAN HOLLAND OR DENMARK BUT BEYOND STRICTLY ECONOMIC FACTORS POLITICAL AND SOCIAL FACTORS ALSO HAVE PLAYED A ROLE IN CHILE'S GROWTH THE TRANSITION TO DEMOCRACY WAS QUICK AND EFFICIENT US TRANSITIONS ARE NOT THAT DIFFERENT FROM WHAT HAPPENED IN CHILE IN 198990 EXCEPT THAT IT MARKED THE END OF A 17YEAR MILITARY GOVERNMENT THE NEW DEMOCRATIC POLITICAL SYSTEM HAS SURPRISED CHILEANS AND INTERNATIONAL OBSERVERS ALIKE BY ITS MATURITY AND DEGREE OF CONSENSUS AMONG THE DIFFERENT POLITICAL ACTORS GONE ARE THE DAYS OF THE TYPICAL LATIN AMERICAN POLITICAL ZEROSUM GAME WHERE ONE GROUP'S AIM WAS TO OBTAIN ALL ITS OBJECTIVES WITHOUT TRADING INTERESTS OR FORMING COALITIONS THE POLITICAL PARTIES THE UNIONS THE MILITARY THE CHURCH THE UNIVERSITIES THE ENTREPRENEURIAL SECTOR ALL HAVE A STAKE IN A WORKABLE DEMOCRATIC SYSTEM THAT TAKES INTO ACCOUNT THE INTERESTS OF MINORITIES THIS HAS LED TO THE RESPONSIBLE ADMINISTRATION OF GOVERNMENT OFFICES THE CHILEAN PUBLIC SECTOR HAS RUN A SMALL SURPLUS DURING THE PAST THREE YEARS DURING 1993 THE GOVERNMENT PLANS TO KEEP THIS POLICY IN PLACE EVEN THOUGH PRESIDENTIAL ELECTIONS WILL TAKE PLACE IN EARLY DECEMBER THIS POLITICALECONOMIC FACT SAYS IT ALL THE CHILEAN GOVERNMENT IS NO LONGER A DRAG ON THE ECONOMY WHILE THE GOVERNMENT RECOGNIZES ITS ROLE IN MAINTAINING AN INFRASTRUCTURE FOR GROWTH AND A REGULATORY FRAMEWORK TO SECURE PROPERTY RIGHTS IT ALSO RECOGNIZES THAT ONLY THE PRIVATE SECTOR CAN CREATE JOBS AND NEW ENTERPRISES ANOTHER IMPORTANT EFFECT OF THIS NEW POLITICAL SCENARIO HAS BEEN TO ELEVATE THE ROLE OF CHILEAN ENTREPRENEURS ECONOMIC GROUPS ARE NO LONGER THE TARGET OF POLITICIANS IN CHILE TODAY IT'S HONORABLE TO BE A BUSINESSMAN TO OWN PROPERTY TO BUILD 30STORY SKYSCRAPERS TO DRIVE IN NEW JAPANESE CARS TO MERGE TO ACQUIRE AND TO ISSUE SHARES ON THE NEW YORK STOCK EXCHANGE WHAT HAVE THE NEW CHILEAN ENTREPRENEURS DONE WITH THEIR NEW LIBERTY THEY HAVE TAKEN IT FOR ALL IT'S WORTH IN TRUE ADAM SMITH FASHION THE COUNTRY IS AWASH WITH DYNAMISM CHILEANS HAVE PUT THEIR MONEY WHERE THEIR MOUTH IS THE LARGEST INVESTORS ARE CHILEAN BUSINESSMEN CHILEAN INVESTORS SNAPPED UP TWO ARGENTINE PUBLIC ENTERPRISES THAT WERE PRIVATIZED A LARGE CHILEAN PRINTING GROUP NOW OWNS OPERATIONS IN ARGENTINA AND BRAZIL AND IS STARTING UP IN MEXICO GROWTH IS EVERYWHERE FOREIGN INVESTMENT IS POURING IN AT SUCH A FAST RATE THAT IT IS APPRECIATING THE PESO THE CHILEAN CMPC CORP SIGNED A DEAL WITH PROCTER & GAMBLE CO TO MARKET THE CHILEAN BABYSAN DISPOSABLE DIAPERS THROUGHOUT LATIN AMERICA PEPSICO PLANS TO INVEST 110 MILLION OVER THE NEXT FIVE YEARSJUST IN ADVERTISINGTO PROMOTE PIZZA HUT KENTUCKY FRIED CHICKEN AND ITS LOCAL SNACK MANUFACTURER EVERCRISP IN ADDITION TO THE LARGEST INTERNATIONAL CORPORATIONS MEDIUMSIZED MULTINATIONALS ARE NOW ENTERING THE COUNTRY AU BON PAIN THE US RETAILER OF HIGH QUALITY BREADS OPENED ITS FIRST STORE RECENTLY SO DID BASKIN & ROBBINS THE ICE CREAM MAKER CHILEAN GROWTH IS NOT MERELY A CASE OF THE RICH GETTING RICHER LOWERINCOME GROUPS ARE ALSO BENEFITING FROM RAPID GROWTH A NEW MALL IN THE LOWINCOME AREA CALLED LA FLORIDA HAS BROUGHT A CLASS OF STORES AND INTERNATIONALLY MARKETED PRODUCTS TO A GROUP OF CONSUMERS WHO IN THE PAST WERE CUT OFF FROM THE GLOBAL MARKETPLACE AS FOR SERVICES A FEW YEARS AGO MOST LOWINCOME FAMILIES HAD TO RELY ON THE CORNER GROCER FOR A TELEPHONE TODAY THEY CAN APPLY TO THE PHONE COMPANY AND HAVE A PHONE INSTALLED IN A MATTER OF DAYS FOR A ONETIME CHARGE OF 300 AND THE TELEPHONE COMPANY PLANS TO PHASE OUT ITS INSTALLATION FEE BECAUSE OF FIERCE COMPETITION FROM SMALLER TELECOMMUNICATIONS COMPANIES THE STANDARD OF LIVING HAS ALSO INCREASED IN THE REGIONS OUTSIDE SANTIAGO NEW MALLS HAVE GONE UP IN THE SOUTH IN RANCAGUA AND CONCEPCION THE NEW SHOPPING CENTERS HAVE APPRECIATED REAL ESTATE AND RAISED INCOMES THE COMPANY THAT BUILT THE FIRST SHOPPING CENTER IN CHILE IS NOW GOING PUBLIC ITS SHARES ARE TRADED ON THE SANTIAGO STOCK EXCHANGE WHILE THE US AND OTHER DEVELOPED COUNTRIES ARE MIRED IN LACKLUSTER GROWTH AND THE REST OF LATIN AMERICA IS STILL RESOLVING ITS OWN STRUCTURAL PROBLEMS CHILE WILL CONTINUE ON THE GROWTH PATH AND WHEN A PERIOD OF SUSTAINED GROWTH DOES REPLACE THE SOFT OR RECESSIONARY TRENDS IN US EUROPEAN AND JAPANESE MARKETS CHILE WILL BE READY TO FEED THEM IN FACT AT THIS RATE CHILE WILL PROBABLY BE ONE OF THE FIRST LATIN AMERICAN COUNTRIES TO JOIN THE GROUP OF DEVELOPED NATIONS MR SINGER IS THE US REPRESENTATIVE OF BANCO DE SANTIAGO 9301220083 930122 BUSINESS BRIEF CREATIVE TECHNOLOGY LTD FIRM'S NET INCOME SURGED IN FISCAL SECOND QUARTER BOOSTED BY A NEW SOUND AND VIDEO PRODUCT LINE FOR PERSONAL COMPUTERS CREATIVE TECHNOLOGY LTD MILPITAS CALIF SAID FISCAL SECONDQUARTER NET INCOME SURGED TO 223 MILLION OR 55 CENTS A SHARE FROM 68 MILLION OR 19 CENTS A SHARE A YEAR EARLIER REVENUE MORE THAN TRIPLED TO 856 MILLION FROM 247 MILLION NET IN THE FIRST HALF ENDED DEC 31 SOARED TO 326 MILLION OR 82 CENTS A SHARE FROM 91 MILLION OR 25 CENTS A SHARE REVENUE ROSE TO 1297 MILLION FROM 333 MILLION IN LATE OVERTHECOUNTER TRADING CREATIVE TECHNOLOGY STOCK JUMPED 5 TO 2950 9301220082 930122 FLEET FINANCIAL PNC AND SHAWMUT POST STRONG PROFIT GAINS FOR FOURTH QUARTER BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL THREE LARGE REGIONAL BANKS REPORTED HIGHER FOURTHQUARTER EARNINGS REFLECTING CONTINUED IMPROVEMENT IN THE INDUSTRY PROFIT MORE THAN DOUBLED AT FLEET FINANCIAL GROUP INC AND QUADRUPLED AT SHAWMUT NATIONAL CORP FROM A YEAR EARLIER WHEN EARNINGS WERE DEPRESSED BY THE NEW ENGLAND ECONOMIC SLUMP PITTSBURGHBASED PNC FINANCIAL CORP POSTED A 43 INCREASE IN NET INCOME FOR THE MOST PART THE BANKS' EARNINGS WERE BOLSTERED BY RISING NET INTEREST INCOME COMBINED WITH A REDUCTION IN NONPERFORMING LOANS PROFIT FOR PNC FINANCIAL AND FLEET FINANCIAL MET EXPECTATIONS THOUGH SHAWMUT'S RESULTS CAME IN AT ABOUT HALF THE ESTIMATES OF MANY ANALYSTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PNC FINANCIAL'S SHARES CLOSED AT 31375 UP 50 CENTS FLEET FINANCIAL'S SHARES DROPPED 125 CENTS TO 34 AND SHAWMUT'S SHARES ENDED AT 19875 DOWN 75 CENTS THE BANKING INDUSTRY HAS COME A LONG WAY SINCE THE SPRING OF 1991 WHEN THE BANK OF NEW ENGLAND FAILED SAID GERARD CASSIDY AN ANALYST AT TUCKER ANTHONY INC THE STOCK MARKET'S ALREADY BETTING ON 1994 NUMBERS PNC FINANCIAL CITING INCREASED NET INTEREST INCOME REPORTED NET INCOME OF 1435 MILLION OR 61 CENTS A SHARE COMPARED WITH 1006 MILLION OR 49 CENTS A SHARE A YEAR EARLIER FOR ALL OF 1992 PNC WITH ASSETS OF 514 BILLION POSTED NET OF 4269 MILLION OR 190 A SHARE COMPARED WITH 3898 MILLION OR 197 A SHARE FOR 1991 THE 1992 FIGURE INCLUDED A CHARGE OF 1025 MILLION FOR THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE RELATING TO POSTRETIREMENT BENEFITS FOR THE FOURTH QUARTER NONPERFORMING ASSETS DECLINED 74 TO 8197 MILLION FROM THE THIRD QUARTER FOR THE 1991 FOURTH QUARTER NONPERFORMING ASSETS WERE 108 BILLION PNC CHAIRMAN THOMAS H O'BRIEN EXPRESSED OPTIMISM ABOUT 1993 SAYING MODERATE ECONOMIC GROWTH WILL SUPPORT AN INCREASE IN LOAN DEMAND IN MOST OF OUR MARKETS MR O'BRIEN SAID PNC EXPECTS TO GROW FROM ACQUISITIONS AND BUSINESSES SUCH AS MUTUAL FUNDS SECURITIES DISTRIBUTION MORTGAGE SERVICING AND CORPORATE SERVICES THE PROVIDENCE RI CONCERN CITED A REDUCTION OF BAD LOANS AND OTHER NONPERFORMING ASSETS FOR ITS IMPROVED RESULTS THE BANK EARNED 82 MILLION OR 53 CENTS A SHARE COMPARED WITH 35 MILLION OR 22 CENTS A SHARE A YEAR EARLIER NONPERFORMING ASSETS WERE REDUCED 39 TO 990 MILLION OR 37 OF TOTAL LOANS AND LEASES FROM 161 BILLION A YEAR EARLIER FLEET IS NEW ENGLAND'S LARGEST BANK WITH ASSETS OF 469 BILLION NET INTEREST INCOME IN THE QUARTER CLIMBED 11 TO 514 MILLION FROM 460 MILLION PROVISIONS FOR CREDIT LOSSES DECLINED 20 TO 138 MILLION FROM 171 MILLION BUT GROSS CHARGEOFFS INCREASED TO 260 MILLION FROM 134 MILLION FOR ALL OF 1992 NET INCOME ROSE TO 280 MILLION OR 178 A SHARE FROM 98 MILLION OR 67 CENTS A SHARE A YEAR EARLIER NET INTEREST INCOME TOTALED 2 BILLION IN 1992 COMPARED WITH 14 BILLION IN 1991 NET INTEREST MARGIN WAS 48 COMPARED WITH 409 REFLECTING AN INCREASE IN THE INTERESTRATE SPREAD FOR THE YEAR FLEET'S NEW ENGLAND BANKING GROUP EARNED 151 MILLION ITS NEW YORK BANKING GROUP EARNED 57 MILLION AND ITS FINANCIAL SERVICES GROUPWHICH INCLUDES VARIOUS FEEBASED SERVICES SUCH AS MORTGAGE BANKINGEARNED 102 MILLION NET INCOME ROSE TO 103 MILLION OR EIGHT CENTS A SHARE FROM 24 MILLION OR TWO CENTS A SHARE A YEAR EARLIER THE COMPANY'S EARNINGS WERE BOLSTERED BY A GAIN OF 32 MILLION FROM A TAXLOSS CARRYFORWARD BUT THE ONETIME GAIN WAS MORE THAN OFFSET BY A 10 MILLION CHARGE RESULTING FROM AN AUCTION OF FORECLOSED PROPERTIES HAD IT NOT BEEN FOR THAT CHARGE OUR EARNINGS WOULD HAVE MET ANALYSTS' EXPECTATIONS A COMPANY SPOKESMAN SAID NET INTEREST INCOME FOR THE QUARTER ROSE 9 TO 2258 MILLION FROM 2074 MILLION IN THE THIRD QUARTER AND 19 FROM 1902 MILLION A YEAR EARLIER NONINTEREST INCOME WAS 931 MILLION COMPARED WITH 149 MILLION A YEAR EARLIER TOTAL LOANS AS OF DEC 31 ROSE TO 149 BILLION FROM 143 BILLION A YEAR EARLIER REFLECTING ONLY SLIGHT GROWTH IN RESIDENTIAL MORTGAGES AS WELL AS COMMERCIAL INDUSTRIAL AND MONEYMARKET LOANS LOAN CHARGEOFFS IN THE FOURTH QUARTER WERE 726 MILLION DOWN 26 FROM 982 MILLION SHAWMUT MARKED 1992 AS A RESTRUCTURING YEAR AND 1993 AS A YEAR FOR GROWING EARNINGS A COMPANY SPOKESMAN SAID SHAWMUT HAD ASSETS AT YEAR END OF 253 BILLION GABRIELLA STERN CONTRIBUTED TO THIS ARTICLE 9301220081 930122 PRIDE OF OWNERSHIP MAKING ENTREPRENEURS OF THE POOR MAY LIFT SOME OFF FEDERAL AID AGENCIES FIND BUSINESS LOANS STIR DREAMS HARD WORK IN RECIPIENTS OF WELFARE DEBT TROUBLE IN APPALACHIA BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL BOONEVILLE KY TWENTYTHREEYEAROLD TERESA BOWLES QUIT SCHOOL AFTER THE EIGHTH GRADE AND RECEIVES GOVERNMENT ASSISTANCE TO SUPPORT HER FAMILY BUT EACH DAY SHE GOES TO WORK IN A TSHIRT SHOP THAT SHE OWNS THE STORE IS PART OF A RAPIDLY GROWING EFFORT TO FIGHT POVERTY BY HELPING THE POOR START THEIR OWN BUSINESSES A 19000 LOAN FROM A NONPROFIT GROUP ENABLED MS BOWLES TO OPEN HER A&B TSHIRT SHOP HERE TWO YEARS AGO SHE SAYS THAT AFTER DEDUCTING EXPENSES FROM THE STORE'S MONTHLY REVENUE OF 3000 AND WITHOUT MAKING FULL PAYMENTS ON HER LOAN SHE IS TAKING HOME ABOUT AS MUCH AS HER FAMILY RECEIVES IN PUBLIC ASSISTANCE SOMEDAY SHE HOPES TO GET OFF WELFARE MS BOWLES HAS FOUGHT HARD FOR THIS OPPORTUNITY FOR SEVERAL MONTHS AFTER OPENING HER STORE SHE WAS FORCED EACH MORNING TO WADE ACROSS A WIDE STREAM BECAUSE THE BRIDGE LEADING TO HER SMALL CRUMBLING HOUSE HAD BEEN WASHED AWAY HER FOURYEAROLD DAUGHTER IN TOW SHE CROSSED TO A ROAD AND WAITED THERE FOR A NEIGHBOR TO DRIVE HER INTO TOWN I HAD MY OWN BUSINESS AND DIDN'T KNOW WHERE ELSE I COULD GET SOMETHING OF MY OWN SAYS MS BOWLES DESCRIBING WHAT DREW HER ACROSS THE CREEK EACH DAY I NEVER HAD ANYTHING OF MY OWN BEFORE IN THIS ISOLATED APPALACHIAN COMMUNITY ONE OF THE NATION'S MOST IMPOVERISHED PLACES OTHER POOR WOMEN HAVE STARTED TINY BUSINESSES TOO ALL WERE MADE POSSIBLE BY A NONPROFIT ORGANIZATION CALLED WORKERS OF RURAL KENTUCKY INC OR WORK WHICH MAKES LOANS TO LOWINCOME PEOPLE IN BOONEVILLE ALTHOUGH THE BUSINESSES HAVEN'T MADE ANYBODY RICH THEY HAVE TRANSFORMED THE LIVES OF THOSE INVOLVED WITH THEM INCREASINGLY DEVELOPMENT SPECIALISTS ARE FOCUSING ON SELFEMPLOYMENT PROJECTS AS A ROUTE OFF WELFARE ABOUT 200 PROGRAMS IN 41 STATES AIM TO HELP THE POOR BY FINANCING SMALL BUSINESSES SOME OF THE MOST SUCCESSFUL CAN BE FOUND IN CHICAGO TUCSON ARIZ AND LOS ANGELES MOST PARTICIPANTS ARE LOWINCOME WOMEN THE PRIME RECIPIENTS OF WELFARE TEN YEARS AGO THERE WERE ONLY TWO SUCH PROGRAMS IN TWO STATES ACCORDING TO THE ASSOCIATION FOR ENTERPRISE OPPORTUNITY A NONPROFIT GROUP NUMEROUS WELLKNOWN NONPROFIT ORGANIZATIONS SUCH AS THE MOTT FOUNDATION THE MS FOUNDATION FOR WOMEN AND THE ASPEN INSTITUTE ARE HEAVILY INVOLVED WITH FUNDING AND MONITORING SUCH PROJECTS SOME OBSERVERS ARE CRITICAL I DON'T SEE THIS AS A BIG ECONOMIC DEVELOPMENT TOOL BECAUSE THERE DOESN'T SEEM TO BE ANY JOB STABILITY SAYS FRED DOOLITTLE AN ANALYST AT THE MANPOWER DEMONSTRATION RESEARCH CORP A NEW YORK THINK TANK BUT DEFENDERS ARE ENTHUSIASTIC A LOT OF PEOPLE SCOFF AT THESE PROGRAMS BECAUSE MANY SMALL BUSINESSES FAIL AND THERE'S A BIAS THAT LOWINCOME PEOPLE ARE STUPID SO THEY'RE EVEN MORE PRONE TO FAILURE SAYS RONA FEIT A SENIOR FELLOW AT THE CORPORATION FOR ENTERPRISE DEVELOPMENT A NONPROFIT ORGANIZATION BUT THAT'S NOT THE CASE THEY'RE WORKING THEY'RE SUCCESSFUL OVER THE LAST FIVE YEARS THE MOTT FOUNDATION HAS LENT 55 MILLION TO 1245 BUSINESSES RUN BY LOWINCOME WOMEN THE BUSINESSES HAVE HAD A FAILURE RATE OF 19 AND EVEN SOME THAT FAILED PAID OFF THEIR LOANS RESULTING IN A DEFAULT RATE OF 66 SAYS MOTT A FOUNDATION THAT PRIMARILY FOCUSES ON EDUCATION AND ECONOMIC DEVELOPMENT A RECENT ROCKEFELLER FOUNDATION STUDY OF SELFEMPLOYMENT FOUND IT TOO EARLY TO DETERMINE THE ECONOMIC IMPACT OF SUCH PROGRAMS OR THEIR ADAPTABILITY AT THE FEDERAL LEVEL YET THE STUDY DID FIND THAT THE PROGRAMS SHARPLY IMPROVED THE SELFCONFIDENCE SELFESTEEM AND ABILITIES OF PARTICIPANTS STELLA MARSHALL CAN ATTEST TO THAT SIX YEARS AGO THE BOONEVILLE NATIVE WHO HAD QUIT SCHOOL AT 14 TO MARRY WAS DEPRESSED AND SUICIDAL BECAUSE OF POVERTY AND A DETERIORATING MARRIAGE THEN SHE WENT TO WORK IT WAS THE WORK GROUP THAT KEPT ME ALIVE AND SAVED MY LIFE SHE SAYS THEY TAUGHT ME THAT I DIDN'T HAVE TO TAKE THINGS I DIDN'T LIKE AND I DIDN'T HAVE TO LOVE A MAN WHO DIDN'T CARE FOR ME IT ALSO HELPED HER PROFESSIONALLY TODAY 37YEAROLD MS MARSHALL IS WORK'S DIRECTOR ADVOCATES SAY SELFEMPLOYMENT PROJECTS ADDRESS A LONGSTANDING OVERSIGHT ESPECIALLY HERE IN APPALACHIA MOST FEDERAL SPENDING THAT HAS BEEN POURED INTO THE REGION HAS GONE TOWARD INFRASTRUCTURE DEVELOPMENT WHILE THE DEARTH OF SPENDING ON PEOPLE THEMSELVES HAS LEFT NEEDY RESIDENTS WITH FEW MARKETABLE SKILLS THERE ARE FEW PLACES IN WHICH IT WOULD BE HARDER TO START A SMALL BUSINESS THAN BOONEVILLE POPULATION 262 MERELY GETTING HERE REQUIRES NEGOTIATING A SERIES OF LONELY MOUNTAIN ROADS THAT WIND PAST TOBACCO FIELDS TARPAPER SHACKS THE ONE WAY JESUS NARROW WAY CHURCH OF GOD COW PASTURES AND THICKLY WOODED RIDGES BOONEVILLE IS THE SEAT OF OWSLEY COUNTY THE POOREST COUNTY IN KENTUCKY THE MOST RELIABLE SOURCE OF INCOME IN THE REGION IS MARIJUANA GROWING ONE IN THREE HOMES LACKS A TELEPHONE AND ONE IN FIVE LACKS PLUMBING ACCORDING TO THE 1990 CENSUS PERCAPITA INCOME FOR ADULTS IS 5791 COMPARED WITH 14420 NATIONALLY OVERWHELMINGLY WHITE CHURCHGOING AND CONSERVATIVE THE PEOPLE OF OWSLEY COUNTY TYPICALLY WAVE TO ONE ANOTHER AS THEY PASS ON THE ROAD BUT THIS IS ALSO A PLACE WHERE RESIDENTS SAY WOMEN ARE ROUTINELY BEATEN BY MEN ALCOHOLISM IS RAMPANT AND TEENAGE DRUG ABUSE IS WIDESPREAD WHEN MS MARSHALL TOOK OVER AS DIRECTOR OF WORK THREE YEARS AGO ITS MAIN MISSION WAS TO BUILD LOWINCOME HOUSING FOR BOONEVILLE RESIDENTS WITH THE HELP OF ECONOMIC DEVELOPMENT EXPERTS MS MARSHALL REFOCUSED THE GROUP ON STARTING SMALL BUSINESSES WITH FUNDING FROM CHARITIES AND OTHER ORGANIZATIONS WE WERE PEOPLE WITHOUT EDUCATION WHO DIDN'T WANT TO STAY ON WELFARE OUR WHOLE LIVES SAYS MS MARSHALL WE'RE LOOKED AT AROUND HERE NOW AS A BIG ECONOMIC DEVELOPMENT SUCCESS BUT WE DIDN'T EVEN KNOW WHAT ECONOMIC DEVELOPMENT WAS WHEN WE STARTED DEVELOPMENT WORKERS WITH MOUNTAIN ASSOCIATION FOR COMMUNITY ECONOMIC DEVELOPMENT A NONPROFIT ORGANIZATION LOCATED TWO HOURS AWAY VISITED ONCE A WEEK TO TEACH MS MARSHALL ABOUT BOOKKEEPING MARKETING AND COMPUTERS TODAY SHE'S ABLE TO TRACK WORK'S FINANCES AND THE FINANCES OF BUSINESSES IT HAS HELPED LAUNCH USING A COMPUTER SPREADSHEET MS THORNTON 31 AND ILLITERATE GREW UP IN A REMOTE VALLEY HAULING SACKS OF COAL TO BURN FOR HEAT IN WINTER AND SHE NEVER GOT PAST THE FOURTH GRADE SHE WAS PREGNANT AT 14 SHE DIDN'T USE A TELEPHONE UNTIL SHE WAS 19 SHE LEFT HOME 11 YEARS AGO TO LIVE WITH MR HURDLE AFTER A FAMILY MEMBER THREATENED HER WITH A SHOTGUN THEY SHARE A TRAILER HOME OUTSIDE BOONEVILLE THEIR FIRST CHILD DIED IN THE CRIB AT FIVE MONTHS AND THEY NOW HAVE TWO CHILDREN AGES THREE AND 10 THREE YEARS AGO WORK MEMBERS HELPED MS THORNTON WRITE A BUSINESS PLAN WHILE SHE LEARNED HOW TO STRIP TILE FLOORS AND USE A HEAVYDUTY BUFFER FROM A NEARBY JANITORIAL SERVICE SHE ALSO LEARNED TO DRIVE MR HURDLE'S CAR AND BEGAN TAKING READING WRITING AND MATHEMATICS CLASSES AT A LOCAL SCHOOL WORK LENT HER 350 WHICH SHE USED TO BUY CLEANING EQUIPMENT AS IT TURNED OUT SHE REPAID HER LOAN IN ONE YEARTWO YEARS AHEAD OF SCHEDULE THE CLEANING SERVICE EARNS ABOUT 200 MONTHLY FROM WORK IT DOES FOR BOTH BUSINESSES AND INDIVIDUALS WORK CONTINUES TO HELP HER KEEP HER BOOKS SHE IS PLANNING TO START ANOTHER BUSINESS A NURSERY THAT WILL GROW LOCAL FLOWERS AND SHIP THEM AROUND THE COUNTRY IF IT HADN'T BEEN FOR THE WORK GROUP TELLING ME THAT YOU CAN DO A LOT AND YOU DON'T NEED A BIG EDUCATION I WOULD NEVER HAVE TRIED ANYTHING MS THORNTON SAYS I'D STILL BE IN A LITTLE SHACK DOING NOTHING WORK DOESN'T BLINDLY INVEST IN NEW VENTURES EACH APPLICANT MUST SUBMIT A BUSINESS PROPOSAL THAT INCLUDES A CASHFLOW PROJECTION AND A MARKETING PLAN A LOCAL NONPROFIT GROUP HUMAN ECONOMIC APPALACHIAN DEVELOPMENT CORP CONTRIBUTES TO WORK'S LOAN FUND AND CAN VETO ANY BUSINESS PLANS IT DOESN'T DEEM VIABLE AND THE MOUNTAIN ASSOCIATION CONTINUES TO HELP PROVIDING FREE FINANCIAL COUNSELING TO THE ENTREPRENEURS TO TRAIN PEOPLE WHO HAVE NO BUSINESS EXPERIENCE WORK ALSO OWNS AND OPERATES A STORE IN BOONEVILLE CALLED THE BARGAIN BARREL THAT SELLS DONATED CLOTHING AND APPLIANCES EXCEPT FOR LOANS AND COUNSELING FROM WORK THE STARTUPS RECEIVE NO SUBSIDIES AND ARE EXPOSED TO THE SAME PERILS AS ANY OTHER BUSINESS ANY RESIDENT OF BOONEVILLE WILLING TO ATTEND WORK'S TWICEAMONTH MEETINGS CAN BECOME A MEMBER OF THE GROUP SO FAR THERE ARE 17 WOMEN AND TWO MEN AT THE MEETINGS MEMBERS MONITOR THE PROGRESS OF EACH OF WORK'S BUSINESSES WHICH SO FAR NUMBER FOUR OWNERS ARE REQUIRED TO REPORT REVENUE AND EXPENSES FROM THE PREVIOUS MONTH AND ANY DIFFICULTIES THEY ARE ENCOUNTERING PERSONAL AND FAMILY PROBLEMS ARE ALSO DISCUSSED AND WORK FUNCTIONS AS A SUPPORT GROUP ONE RECURRING ISSUE THE GROUP CONFRONTS IS THE THREAT OF PHYSICAL ABUSE FROM HUSBANDS OR LOVERS WHO DISLIKE WOMEN WORKING OUTSIDE THE HOME OR HAVING INDEPENDENT SOURCES OF INCOME MS BOWLES THE TSHIRT ENTREPRENEUR HAS BENEFITED FROM WORK'S SUPPORT AGAINST THE WISHES OF HER UNEMPLOYED HUSBAND HUEY WHOM SHE MARRIED AT 16 SHE OPENED THE A&B TSHIRT SHOP WITH HER 19000 LOAN AFTER LEARNING HOW TO PRINT LETTERING AND IMAGES ON BAGS JACKETS AND SHIRTS SHE BOUGHT SILKSCREEN AND OTHER EQUIPMENT AND LEASED SPACE ON BOONEVILLE'S MAIN SQUARE IN SEPTEMBER 1990 MS BOWLES SAYS BUSINESS IS SO GOOD SHE IS STRUGGLING TO KEEP UP WITH ORDERS BESIDES SELLING TO BOONEVILLE RESIDENTS SHE HAS MARKETED HER TSHIRTS TO SCHOOL AND COMMUNITY FUNCTIONS IN OTHER COUNTIES HER EXPERIENCE HAS GIVEN HER THE CONFIDENCE TO EARN HER HIGHSCHOOL EQUIVALENCY DIPLOMA AND SHE RECENTLY COMPLETED HER FIRST COLLEGE CLASS STILL WITH ONLY ONE YEAR REMAINING ON HER THREEYEAR LOAN SHE OWES ABOUT 15000 AFTER THE LOAN COMES DUE A ONEYEAR GRACE PERIOD TAKES EFFECT AFTER WHICH WORK WILL CALL THE LOAN BOTH MS BOWLES AND MS MARSHALL BELIEVE THE LOAN WILL BE PAID OFF MEANWHILE HER HUSBAND HAS DROPPED HIS OBJECTIONS TO HER ENTERPRISE TERESA'S HAPPY AND I'M HAPPY SHE'S HAPPY SAYS MR BOWLES WHO HAS TATTOOS OF A SWASTIKA ON HIS THUMB AND OF A CANNABIS LEAF ON HIS FOREARM ANOTHER NEW BUSINESS OWNER BESSIE WILDER OWNS A RESTAURANT CALLED THE DONUT SHOPPE AND STARTS HER WORKDAY AT 3 AM SO SHE CAN HAVE 18 DOZEN DONUTS READY BY 6 SHE USED A 4700 WORK LOAN TO BUY THE BUSINESS LAST YEAR GETTING THIS FAR HAS BEEN A STRUGGLE THE 42YEAROLD HIGHSCHOOL DROPOUT SAYS SHE WASN'T PREPARED FOR THE PAPERWORK INVOLVED WITH RUNNING A BUSINESS SHE HAS TROUBLE DISCIPLINING HERSELF TO MAKE ACCOUNTING ENTRIES AT THE END OF EACH WORK DAY AND SHE SAYS THE RESTAURANT NEARLY FAILED AS SALES SLOWED WHEN SCHOOLS CLOSED FOR VACATION LAST SUMMER BUT IT SURVIVED AND NOW THE SHOP SITUATED ON BOONEVILLE'S MAIN SQUARE HAS BECOME A POPULAR SPOT MS WILDER SAYS EACH MONTH SHE IS TAKING HOME 400 TO 500 A SIGNIFICANT SUM TO MANY PEOPLE HERE ON REVENUE OF ABOUT 3000 BUT WITH TWO YEARS REMAINING ON HER THREEYEAR LOAN SHE HAS REPAID ONLY 620 A RATE OF PAYMENT THAT MS MARSHALL DESCRIBES AS SOMEWHAT BEHIND SCHEDULE BUT MS MARSHALL ADDS THAT SHE AND HER ADVISERS AREN'T WORRIED MS WILDER A FORMER NURSINGHOME COOK WHO HAS A 15YEAROLD DAUGHTER AND RECEIVES PUBLIC ASSISTANCE SAYS IF I HAD THIS OPPORTUNITY WHEN I WAS 20 YEARS OLD I'D BE COLONEL SANDERS BY NOW WORK ISN'T WITHOUT PROBLEMS MS MARSHALL THINKS SHE MIGHT HAVE TO BE MORE STRICT ABOUT LOAN PAYMENTS ALTHOUGH NO BUSINESSES HAVE WALKED AWAY FROM THEIR LOANS THEIR PAYMENTS AREN'T ALWAYS TIMELY SHE ALSO SUSPECTS SOME MEMBERS UNDERREPORT EARNINGS TO PROTECT WELFARE PAYMENTS THAT THEY STILL NEED TO SURVIVE UNTIL THEIR BUSINESSES BECOME STRONGER IN KENTUCKY A FAMILY OF FOUR LOSES AID TO FAMILIES WITH DEPENDENT CHILDREN PAYMENTS IF ITS MONTHLY INCOME IS GREATER THAN 1096 ACCORDING TO THE STATE DEPARTMENT OF SOCIAL INSURANCE FOOD STAMPS ARE CUT OFF IF MONTHLY INCOME CLIMBS ABOVE 1512 YET THE GREATEST CHALLENGE FOR MS MARSHALL MAY BE KEEPING WORK ITSELF AFLOAT IT OPERATES ON A BUDGET OF ABOUT 1750 A MONTH AND SOMETIMES IT CAN'T PAY ALL ITS BILLS WHEN THAT HAPPENS MS MARSHALL DOESN'T PAY HERSELF SOME NIGHTS I CAN'T SLEEP WORRYING THAT ALL OF THIS IS GOING TO FALL THROUGH THE FLOOR SHE SAYS DEVELOPMENT SPECIALISTS WARN THAT SELFEMPLOYMENT ALONE WON'T ALLEVIATE POVERTY AND THAT PROGRAMS LIKE WORK NEED TO BE PART OF A BROADER AGENDA YET WORK'S MEMBERS SAY SELFEMPLOYMENT IS AN IMPORTANT START IF THIS GROUP FALLS APART TOMORROW WHAT WE'VE ALL LEARNED HERE WON'T BE FORGOTTEN SAYS MS BOWLES IT'S THE GREATEST THING THAT'S EVER HAPPENED TO ALL OF US 9301220080 930122 YOUR MONEY MATTERS WEEKEND REPORT HOW TO PROFIT FROM ECONOMISTS' FORECASTS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL WE HAVE TWO CLASSES OF FORECASTERS THOSE WHO DON'T KNOW AND THOSE WHO DON'T KNOW THEY DON'T KNOW LOOKING FOR AN EASY WAY TO MAKE MONEY BETTING ON INTEREST RATES FIND OUT THE CONSENSUS FORECAST AMONG LEADING ECONOMISTS AND THEN BET AGAINST IT THAT STRATEGY WOULD HAVE PAID OFF HANDSOMELY ACCORDING TO TWO SEPARATE ANALYSES OF FEARLESS FORECASTS FROM ECONOMISTS POLLED SEMIANNUALLY SINCE 1981 BY THE WALL STREET JOURNAL IT'S CRAZY SAYS JACK MILLER A NEW YORK INVESTMENT SPECIALIST THESE GUYS GET PAID ENORMOUS SUMS TO MAKE THESE CALLS BUT IT TURNS OUT YOU WOULD ACTUALLY HAVE BEEN BETTER OFF BETTING THE OTHER WAY THAT'S CERTAINLY WHAT ROBERT BECKWITT A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON FOUND WHEN HE STUDIED DATA FROM THE JOURNAL'S SURVEYS HIS CONCLUSION BY BETTING AGAINST THE CONSENSUS 30YEAR TREASURY BONDYIELD FORECAST EVERY SIX MONTHS SINCE DECEMBER 1981 AN INVESTOR WOULD HAVE EARNED A SPARKLING AVERAGE ANNUAL RETURN OF 137 BETTING AGAINST THE CONSENSUS MEANS RUSHING OUT AND BUYING LONGTERM TREASURY BONDS WHENEVER THE AVERAGE FORECAST CALLED FOR HIGHER INTEREST RATES AND BUYING SHORTTERM TREASURY BILLS WHENEVER THE EXPERTS PREDICTED LOWER RATES BY COMPARISON MR BECKWITT PORTFOLIO MANAGER OF FIDELITY ASSET MANAGER FUND FOUND THAT A FOLLOWTHEHERD APPROACH WOULD HAVE NETTED AN AVERAGE ANNUAL RETURN OF 88 ONLY SLIGHTLY BETTER THAN THE 75 FROM INVESTING IN THREEMONTH TBILLS YOU REALLY CAN'T SAY ENOUGH BAD THINGS ABOUT HOW BAD THE CONSENSUS HAS BEEN IN FORECASTING INTEREST RATES SAYS STEPHEN K MCNEES AN ECONOMIST AT THE FEDERAL RESERVE BANK OF BOSTON WHO ALSO ANALYZED DATA FROM THE JOURNAL'S SURVEYS AS AN INVESTOR YOU CLEARLY WOULD HAVE DONE MUCH BETTER FLIPPING A COIN OR ASSUMING THAT RATES WOULD REMAIN UNCHANGED SOME INVESTMENT PROS DON'T FIND THAT TOO SURPRISING IF YOU SPEND MORE THAN 14 MINUTES A YEAR ON ECONOMICS YOU'VE WASTED 12 SAYS PETER LYNCH THE NOW SEMIRETIRED INVESTMENT WIZARD OF FIDELITY INVESTMENTS IF AN ECONOMIST AT GENERAL MOTORS TELLS YOU STEEL PRICES ARE GOING UP AFTER BEING WEAK FOR FOUR YEARS THAT'S USEFUL MR LYNCH SAYS IF AN ECONOMIST AT SEARS TELLS YOU ABOUT A NEW TREND IN THE APPLIANCE BUSINESS THAT'S USEFUL BUT IF AN ECONOMIST TELLS YOU WHERE INTEREST RATES AND THE ECONOMY WILL BE 12 MONTHS FROM NOW THAT'S WEATHER FORECASTING ECONOMISTS HAVE BEEN PARTICULARLY BAD AT PREDICTING MAJOR TURNING POINTS IN THE ECONOMY AND INTEREST RATES CALLS THAT ARE PARTICULARLY IMPORTANT FOR INVESTORS AND CORPORATE BUDGET PLANNERS BECAUSE LARGE AMOUNTS OF MONEY CAN BE MADE OR LOST IN MID1990 FOR EXAMPLE 35 OF 40 ECONOMISTS IN THE JOURNAL SURVEY SAID THE ECONOMY WOULD CONTINUE GROWING FOR AT LEAST 12 MORE MONTHS THAT WAS RIGHT BEFORE THE 199091 RECESSION IN EARLY 1991 MOST FORECASTERS PREDICTED THE RECESSION WOULD LINGER AT LEAST ANOTHER SIX MONTHS IT ENDED IN MARCH 1991 THE CONSENSUS DID COME CLOSE TO BEING CORRECT FOR MUCH OF 1992 A YEAR AGO ECONOMISTS WERE PREDICTING A BLEAK WINTER FOLLOWED BY A MILD RECOVERY THEN IN MID1992 ECONOMISTS CORRECTLY PREDICTED LOWER INTEREST RATES AND LACKLUSTER GROWTH AT THAT TIME THE CONSENSUS WAS APTLY SUMMARIZED BY ROBERT DEDERICK EXECUTIVE VICE PRESIDENT OF NORTHERN TRUST CO WHO PROPHESIED A LIGHTBEER RECOVERY NOT VERY FILLING ECONOMISTS HAVE PROVEN FAIRLY ADEPT AT FORECASTING INFLATION OR AT LEAST BETTER THAN AT MANY OTHER THINGS ACCORDING TO DATA COMPILED BY MR MCNEES AND STAFFERS AT THE FEDERAL RESERVE IN BOSTON HE SAYS EVERY ECONOMIST WHO APPEARED IN 15 OR MORE SURVEYS PRODUCED BETTER INFLATION FORECASTS FOR THE NEXT SIX MONTHS THAN A PREDICTION OF NO CHANGE IN THE INFLATION RATE FROM THE PREVIOUS SIXMONTH PERIOD BUT FOR SOME REASON GOOD INFLATION FORECASTING DOESN'T ALWAYS TRANSLATE INTO ACCURATE INTEREST RATE FORECASTING MR MCNEES NOTES THAT PAUL BOLTZ OF T ROWE PRICE ASSOCIATES INC WAS AMONG THE BEST INFLATION FORECASTERS BUT AMONG THE LEAST EFFECTIVE IN FORECASTING SHORTTERM TREASURY BILL RATES MOREOVER ONE YEAR'S HERO OFTEN TURNS INTO THE NEXT YEAR'S GOAT FOR EXAMPLE EDWARD S HYMAN PRESIDENT OF ISI GROUP INC WAS TOPS IN MID1991 ON THE BASIS OF HIS FORECASTS OF INTEREST RATES IN THE SECOND HALF OF THAT YEAR HE ALSO RANKED NO 1 AS AN ECONOMIC GURU AMONG MONEY MANAGERS SURVEYED BY THE WALL STREET JOURNAL EARLY IN 1992 BUT MR HYMAN RANKED DEAD LAST AMONG 42 FORECASTERS IN THE MID1992 SURVEY FOR HIS SECONDHALF INTERESTRATE FORECASTS THE MORAL HE SAYS IS BE PERSISTENT AND BE HUMBLE ANOTHER MORAL SOME ANALYSTS SAY IS TO IGNORE ALL INDIVIDUAL ECONOMIC FORECASTS IT MAY BE MORE USEFUL TO LOOK AT THE AVERAGE FORECASTS IN LARGE SURVEYS INSTEAD OF ANY ONE INDIVIDUAL PREDICTION SAYS PAUL VOLCKER FORMER CHAIRMAN OF THE FEDERAL RESERVE BOARD AND NOW CHAIRMAN OF JAMES D WOLFENSOHN INC ECONOMISTS WHO HAVE STUDIED THIS SUBJECT SAY THE GROUP AVERAGE FORECASTS ON THE ECONOMY TEND TO BE MORE ACCURATE OVER TIME THAN ANY INDIVIDUAL FORECASTERS BUT GROUP FORECASTS ON INTEREST RATES ARE MUCH LESS RELIABLE THAN ON THE ECONOMY SAYS ROBERT J EGGERT EDITOR OF BLUE CHIP ECONOMIC INDICATORS OF SEDONA ARIZ WHY DO SO MANY HIGHPAID FORECASTERS WITH HIGHPOWERED COMPUTERS AND ACCESS TO ALL THE LATEST ECONOMIC DATA GO SO FAR ASTRAY CRITICS SAY THE WIDESPREAD FAILURE TO DETECT IMPORTANT ECONOMIC SHIFTS PROBABLY REFLECTS A WIDESPREAD TENDENCY AMONG FORECASTERS TO BE MOMENTUMFOLLOWERS THAT MEANS ASSUMING THAT WHATEVER HAS HAPPENED OVER THE PAST SEVERAL MONTHS WILL CONTINUE OVER THE NEXT FEW MONTHS THEY ALSO SAY TOO MANY ECONOMISTS ESPECIALLY THOSE AT MAJOR FINANCIAL INSTITUTIONS ARE AFRAID TO MAKE FORECASTS THAT DIFFER SIGNIFICANTLY FROM THE CONVENTIONAL WISDOM CLINGING CLOSE TO THE HERD USUALLY IS A SAFER STRATEGY EVEN IF IT MEANS MISSING IMPORTANT CHANGES ONE IS REMINDED OF THE COMMENT THAT ECONOMISTS ARE MORE IN TOUCH WITH EACH OTHER THAN THEY ARE WITH REALITY SAID NORMAN ROBERTSON WHO RECENTLY RETIRED AS CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH OTHER STATISTICS COMPILED BY FIDELITY'S MR BECKWITT SHOW THE CONSENSUS WAS RIGHT FIVE TIMES AND WRONG 17 TIMES ON WHICH WAY LONGTERM INTEREST RATES WERE HEADING OVER THE NEXT SIX MONTHS BUT ONLY TWO OF THOSE ANALYSTS MS LEISENRING AND MR HARRIS PRODUCED FORECASTS THAT WOULD HAVE BEATEN A STRATEGY OF BEING INVESTED IN INTERMEDIATETERM BONDS THROUGHOUT THE PERIODS FOR WHICH THEY WERE PREDICTING BUYING AND HOLDING A BASKET OF INTERMEDIATETERM TREASURY BONDS WOULD HAVE PRODUCED AN AVERAGE ANNUAL RETURN OF 125 OR 37 PERCENTAGE POINTS MORE THAN BETTING ON THE CONSENSUS THE ECONOMIST WITH BY FAR THE WORST RECORD ON FORECASTING THE ECONOMY AND THE UNEMPLOYMENT RATE IS ALSO THE ECONOMIST WITH BY FAR THE BEST RECORD IN PICKING WHEN TO BUY LONGTERM BONDS A GARY SHILLING WHO HEADS AN ECONOMIC CONSULTING FIRM AND MANAGES MONEY DURING THE 1980S MR SHILLING FREQUENTLY MADE GLOOMY FORECASTS ABOUT THE ECONOMY AND THUS SAW SHARPLY LOWER INTEREST RATES AHEAD HIS FORECASTS OFTEN WERE A LONG WAY OFF THE MARK BUT INVESTORS WHO BET ON HIS RATE FORECASTS BY PUTTING THEIR MONEY IN LONGTERM BONDS DID VERY WELL DESPITE THE ECONOMISTS' UNENVIABLE RECORD MR BECKWITT IS SYMPATHETIC I WOULDN'T WANT TO HAVE THAT JOB AND I'M GLAD I DON'T HAVE IT HE SAYS MOREOVER LIKE MANY OTHER INVESTMENT MANAGERS HE SAYS HE STILL THINKS IT'S IMPORTANT TO KEEP UP WITH CONSENSUS FORECASTS IT HELPS ME GET A SENSE OF LITERALLY WHAT IS PRICED IN THE MARKET AT THE CURRENT TIME HE SAYS SPECIALISTS MR VOLCKER ONCE QUIPPED THAT ECONOMISTS AND ARTHRITIS SPECIALISTS HAVE SEVERAL THINGS IN COMMON BOTH HE SAID ARE BETTER AT DIAGNOSIS THAN AT CURES AND BOTH ARE BETTER AT EXPLAINING WHAT HAPPENED THAN AT PREDICTING AND DESPITE OUR YEARS OF LEARNING AND OUR EFFORTS AT EDUCATION WE STILL FIND OUR PATIENTS AND CLIENTS LONGING FOR RELIEF TURNING WITH DISTRESSING FREQUENCY TO TODAY'S EQUIVALENT OF SNAKE OIL AND WITCHCRAFT MR VOLCKER CONCLUDED AS FOR JOHN KENNETH GALBRAITH THE WELLKNOWN PROFESSOR AUTHOR AND YES ECONOMIST HE SAYS THE ABYSMAL PERFORMANCE OF SO MANY HIGHPAID FORECASTERS DOES NOT SURPRISE ME AT ALL HE ADDS THE ASSOCIATION OF INTELLIGENCE WITH MONEY IS DEEPLY SUSPECT THIS SHOULD BE EVERYONE'S GUIDING RULE 9301220079 930122 TRACKING TRAVEL BY BRETT PULLEY THE OLD ADAGE PUTS BUSINESS BEFORE PLEASURE BUT THAT ISN'T EXPECTED TO HOLD TRUE IN TRAVEL THIS YEAR LEISURE TRAVEL IS LIKELY TO LEAD THE INDUSTRY'S RECOVERY WITH MORE MODEST GAINS ANTICIPATED IN BUSINESS TRAVEL TRAVEL TYPICALLY GROWS 50 FASTER DURING RECOVERIES THAN THE ECONOMY SAYS JAMES CAMMISA WHO PUBLISHES THE NEWSLETTER TRAVEL INDUSTRY INDICATORS IN MIAMI THUS IF THE ECONOMY GROWS 25 TO 3 THIS YEAR AS MANY ECONOMISTS PREDICT THE TRAVEL INDUSTRY WILL PROBABLY GROW ABOUT 4 A SURVEY BY BUDGET RENT A CAR SHOWS TRAVEL PROFESSIONALS EXPECT THIS YEAR TO BE THE INDUSTRY'S BEST SINCE 1990 OF 500 TRAVEL AGENTS AND CORPORATE TRAVEL MANAGERS SURVEYED 63 EXPECT AN INCREASE IN LEISURE TRAVEL COMPARED WITH 47 OF TRAVEL MANAGERS WHO PREDICT GROWTH IN BUSINESS TRAVEL HOTEL OPERATORS ARE ALREADY SEEING AN INCREASE IN LEISURE GUESTS SAYS MELINDA BUSH SECAUCUS NJ PUBLISHER OF HOTEL AND TRAVEL INDEX WHICH TRACKS 50000 HOTELS WORLDWIDE BUT BUSINESS TRAVEL SHE SAYS IS FLAT OR DOWN LEISURE TRAVEL WILL BENEFIT FROM A GROWING JOB MARKET RISING CONSUMER CONFIDENCE AND IMPROVING HOUSEHOLD FINANCES SAYS MR CAMMISA PLEASURE TRAVEL HAS ALWAYS BEEN MORE CYCLICAL HE SAYS WHAT YOU'RE SEEING NOW IS A CONSUMER WHO IS FEELING BETTER WE'LL SEE AN EXAGGERATED UPSWING IN LEISURE TRAVEL BUSINESS TRAVEL THOUGH WILL FEEL THE LINGERING EFFECTS OF CORPORATE CUTBACKS AND THE SLUGGISH ECONOMY MANAGERS WHO HAVE SURVIVED LAYOFFS FIND THEY HAVE LESS TIME TO TRAVEL THERE'S MORE PRESSURE ON LEAN STAFFS IN TERMS OF PRODUCTIVE AND EFFICIENT USE OF TIME MR CAMMISA SAYS AND THOUGH MANY TRAVEL EXPERTS CREDIT THE ELECTION OF PRESIDENT CLINTON WITH SPURRING CONSUMER CONFIDENCE AND BOOSTING LEISURE TRAVEL MR CAMMISA THINKS BUSINESS HAS A WAITANDSEE ATTITUDE ABOUT THE NEW ADMINISTRATION THAT WILL DAMP GROWTH IN BUSINESS TRAVEL AMERICAN VACATIONERS ARE LIKELY TO FLOCK TO SOME UNUSUAL SPOTS THIS YEAR TRAVEL AGENTS SAY AMONG THE MOST SURPRISING POSSIBILITIES IS ONE OLD FAVORITE CUBA US TRAVEL RESTRICTIONS HAVE KEPT AMERICANS AWAY FROM THE ISLAND FOR THREE DECADES THE TRAVEL BAN REMAINS IN EFFECT BUT RUMORS OF A LIFTING OF RESTRICTIONS AND GROWING ANTICIPATION THAT THE CASTRO GOVERNMENT MAY FALL HAVE TOUR OPERATORS AND CRUISE COMPANIES MAKING PLANS CRUISESHIP OPERATORS ARE STUDYING CUBA'S VARIOUS PORTS OF CALL CONDUCTING SAMPLES OF SAILING TIMES AND DEVELOPING THREEDAY AND FOURDAY CRUISE ITINERARIES SAYS ROGER BLOCK PRESIDENT OF TRAVEL AGENTS INTERNATIONAL A FRANCHISE COMPANY BASED IN ST PETERSBURG FLA ROD MCLEOD EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING AT ROYAL CARIBBEAN CRUISES MIAMI SAYS THOSE OF US WHO ARE ACTIVE IN THE CARIBBEAN ARE TAKING A LOOK AT HOW DESTINATIONS IN CUBA CAN BE INCLUDED IN OUR ITINERARIES CUBA WAS ALSO AMONG THE NEW DESTINATIONS THAT SHOWED UP IN A POLL BY THE AMERICAN SOCIETY OF TRAVEL AGENTS IN WHICH TRAVEL PROFESSIONALS WERE ASKED TO FORECAST THE TOP DESTINATIONS FOR 1993 EUROPE THE US AND THE PACIFIC RIM WERE THE LEADING PICKS BUT WITH THE FALL OF SO MANY REGIMES AROUND THE WORLD PEOPLE ARE EXPECTING IT WILL EVENTUALLY HAPPEN IN CUBA TOO SAYS JIM ERASO FLORIDA AREA DIRECTOR FOR THE TRAVEL AGENTS' GROUP LOW HOTEL RATES AND EXCEPTIONAL BEACHES ACCOUNT FOR MUCH OF THE INTEREST IN CUBA THE COUNTRY'S INFRASTRUCTURE IS HARDLY READY TO HANDLE AN INFLUX OF TRAVELERS BUT BECAUSE IT HAS BEEN FORBIDDEN FRUIT CUBA WILL BOOM AS A TOURIST DESTINATION WHEN THE RESTRICTIONS ARE LIFTED MR BLOCK SAYS ANYONE WHO HAS EVER BEEN SQUEEZED INTO A CROWDED COACH SECTION ON A LONG FLIGHT WILL APPRECIATE TRANS WORLD AIRLINES' LATEST MARKETING TACTIC THE FINANCIALLY TROUBLED CARRIER SEEKING TO DISTINGUISH ITSELF FROM RIVALS IS RECONFIGURING EACH OF THE 168 PLANES IN ITS FLEET TO GIVE ECONOMY AND BUSINESSCLASS PASSENGERS AS MUCH LEGROOM AS SOME FIRSTCLASS TRAVELERS TWA WHICH INTENDS TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS AS AN EMPLOYEEOWNED COMPANY HOPES TO PROMOTE COMFORT AND CONVENIENCE ON ITS FLIGHTS WHAT WE'RE TRYING TO GET BACK TO IS THE TRADITION OF TWA BEING A QUALITY PRODUCT SAYS ROBERT COZZI TWA'S SENIOR MARKETING REPRESENTATIVE THE AIRLINE SAYS IT WILL REMOVE ABOUT 10 OF ITS SEATS TO PROVIDE THE ADDITIONAL LEGROOM IN COACH TWA SAYS THE SEAT PITCH JARGON FOR THE SPACE FROM THE CENTER OF ONE SEAT TO THE CENTER OF THE NEXT WILL GROW TO 34 INCHES FROM 31 THAT IS GENEROUS SAYS JIM O'DONNELL CHAIRMAN OF SEABROOK MARKETING AN AIRLINE CONSULTING FIRM IN HOUSTON HE THINKS FLIERS WILL BE ENTICED BY THE PROSPECT OF GETTING SOME OF THE FEEL OF FIRST CLASS FOR THE PRICE OF COACH ENHANCED COMFORT ISN'T A PROVEN ELIXIR FOR WHAT AILS AIRLINES EASTERN AIRLINES AND MIDWAY AIRLINES TRIED SEATING TACTICS SIMILAR TO TWA'S SHORTLY BEFORE THEY WERE FORCED OUT OF BUSINESS BUT TWA MAY HAVE AN ADVANTAGE ACCORDING TO JULIUS MALDUTIS A SALOMON BROTHERS AIRLINE ANALYST ITS ROUTE STRUCTURE FOCUSES ON TRANSATLANTIC AND TRANSCONTINENTAL SERVICE OTHER CARRIERS HAVE MORE SHORT FLIGHTS WHICH TEND TO BE MORE CROWDED AND WOULD FEEL MORE OF A REVENUE PINCH IF THEY RECONFIGURED THEIR PLANES FOR PASSENGERS OF BWIA INTERNATIONAL AIRWAYS TRAVELING FIRST CLASS BEGINS AT THE FRONT DOOR TRINIDAD'S STATEOWNED AIRLINE OFFERS COMPLIMENTARY PRIVATE LIMOUSINE SERVICE TO ITS FIRSTCLASS PASSENGERS FLYING FROM NEW YORK AND MIAMI TO THE CARIBBEAN ONEQUARTER OF AMERICAN ADULTS HAVE NEVER FLOWN ACCORDING TO A SURVEY BY THE AIR TRANSPORT ASSOCIATION 9301220078 930122 ENTERPRISE FOCUS ON FRANCHISING CONFIDENTIAL' FTC MEMO DISCLOSES TARGETS OF PROBES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL SEVEN SUBJECTS OF FEDERAL FRANCHISING PROBES ARE DISCLOSED A FEDERAL TRADE COMMISSION MEMO MARKED CONFIDENTIAL IDENTIFIES THE SEVEN FRANCHISERS AS SUBJECTS OF CONTINUING INVESTIGATIONS INTO POSSIBLE VIOLATIONS OF DISCLOSURE RULES THE LIST SHOWS THE FTC IS LOOKING AT A VARIETY OF FRANCHISERS INCLUDING SOME FAMOUS NAMES BUT IT ALSO GIVES NEW AMMUNITION TO CRITICS WHO CONTEND THAT THE AGENCY IS ACTING TOO SLOWLY TO ADDRESS FRANCHISEE COMPLAINTS THE FTC RECENTLY DISCLOSED THAT IT WAS CONDUCTING 30 INVESTIGATIONS INTO FRANCHISING BUT IT DECLINED TO NAME ANY OF THE SUBJECTS SAYING DISCLOSURE MIGHT IMPEDE ENFORCEMENT A MEMO OBTAINED BY THE WALL STREET JOURNAL LISTS SEVEN SUBJECTS ALPHAGRAPHICS INC TUCSON ARIZ GINGISS INTERNATIONAL INC CHICAGO HILLARY'S ICE CREAM & YOGURT INC GLEN MILLS PA INTERNATIONAL BARTENDING INSTITUTE INC NOKOMIS FLA MINUTEMAN PRESS INTERNATIONAL INC FARMINGDALE NY POSTAL INSTANT PRESS INC AGOURA HILLS CALIF AND SNELLING & SNELLING INC DALLAS THE FTC MEMO DOESN'T IDENTIFY ANY OTHER SUBJECTS AND DOESN'T GIVE DETAILS OF ANY PROBES BUT LESLIE G WESTON IN TULSA OKLA SAYS HE AND A DOZEN OTHER FORMER SNELLING FRANCHISEES COMPLAINED TO THE FTC ABOUT THE PERSONNELSERVICES FRANCHISER'S CLAIMS OF FRANCHISEE COSTS AND PROFIT MARGINS M STEVEN LACROIX SNELLING'S GENERAL COUNSEL ACKNOWLEDGES THAT THE COMPANY IS BEING INVESTIGATED BUT SAYS SNELLING DOES NOT GIVE IMPROPER EARNINGS CLAIMS IN FEDERAL COURT IN MIAMI MORE THAN 60 FORMER AND CURRENT FRANCHISEES HAVE ACCUSED SPEEDY SIGNARAMA USA AND ITS PARENT MINUTEMAN OF MISLEADING THEM ON THE COMPANY'S FRANCHISEE FAILURE RATE AND OTHER POINTS THE FTC IS LOOKING AT THOSE ALLEGATIONS ONE PERSON FAMILIAR WITH THE COURT CASE SAYS MINUTEMAN OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT ROBERT E DAME A FORMER GINGISS FORMALWEARSHOP FRANCHISEE NOW IN JAMESTOWN NC SAYS HE COMPLAINED TO THE FTC ABOUT GINGISS'S STATEMENTS ON FRANCHISEE OPERATING COSTS GINGISS SAYS IT BELIEVES IT COMPLIED WITH ALL DISCLOSURE RULES AND DIDN'T MISLEAD ANYBODY AS PREVIOUSLY REPORTED SOME FORMER FRANCHISEES OF BOTH ALPHAGRAPHICS AND POSTAL INSTANT PRESS KNOWN AS PIP PRINTING HAVE ACCUSED THE PRINTSHOP FRANCHISERS OF MISLEADING THEM ALPHAGRAPHICS LAST YEAR REACHED SETTLEMENTS WHICH IT CALLED FAVORABLE TO ITSELF WITH 29 FORMER FRANCHISEES THE COMPANY SAYS THE FTC HAS TOLD IT ONLY THAT IT IS THE SUBJECT OF AN INFORMAL INQUIRY THE COMPANY SAYS IT IS IN COMPLIANCE WITH ALL RULES AND LAWS GOVERNING FRANCHISING AT PIP GENERAL COUNSEL PAUL A PAVLIS SAYS OUR COMPANY FEELS IT HASN'T DONE ANYTHING WRONG AT INTERNATIONAL BARTENDING CHAIRMAN JAMES H HAREN SAYS THE FTC IS CONCERNED THAT HE DIDN'T TELL BARTENDERSCHOOL FRANCHISEES ABOUT A 1978 CONSENT ORDER UNDER WHICH A COMPANY THAT HE OWNED AGREED TO STOP ADVISING INVENTORS NOT TO SEEK PATENTS MR HAREN INSISTS THAT NO RULE REQUIRES HIS CURRENT COMPANY TO DISCLOSE THE ORDER HILLARY'S PRESIDENT S LOUIS TERMINI SAYS HE DOESN'T KNOW WHY THE FTC IS INVESTIGATING THAT COMPANY THE WHEELS OF JUSTICE GRIND TOO SLOWLY FRANCHISEES AND FRANCHISERS SAY THE FTC MEMO BY LISTING THE DATES WHEN ONGOING INVESTIGATIONS WERE BEGUN CONFIRMS WIDESPREAD FRANCHISEE REPORTS THAT THE AGENCY OFTEN IS A SNAIL CRITICS SAY THE GINGISS INVESTIGATION BEGAN EARLY IN 1989 ACCORDING TO THE MEMO MR DAME THE FORMER FRANCHISEE SAYS IT WILL BE FIVE YEARS THIS FALL SINCE THE INITIAL COMPLAINTS WERE FILED HE SAYS THE FTC IS TAKING A RIDICULOUS AMOUNT OF TIME TO DECIDE WHAT CHARGES IF ANY TO BRING AGAINST GINGISS THE PIP PRINTING PROBE BEGAN LATE IN 1988 THE MEMO SAYS FORMER FRANCHISEES SAY HOWEVER THAT THE FTC AFTER AN INITIAL BURST OF INTEREST HAS APPARENTLY DONE LITTLE ON PIP SINCE 1990 WE'RE ANGRY AS HELL SAYS WILLIAM H HOSKINS A FORMER PIP FRANCHISEE IN LANSING MICH WE FEEL THEY HAVEN'T DONE ANYTHING ON A GOOD CASE PIP DENIES THAT FRANCHISEES HAVE A GOOD CASE FRANCHISERS ESPECIALLY THOSE PROFESSING INNOCENCE DON'T LIKE THE SLOW PACE AT THE FTC EITHER EVERY DAY AN INVESTIGATION GOES ON IT'S A CLOUD OVER THE FRANCHISER'S HEAD SAYS DAVID J KAUFMANN A NEW YORK LAWYER FOR SEVERAL FRANCHISERS INCLUDING INTERNATIONAL BARTENDING ASKED ABOUT THE PACE OF THE TWO PROBES AN FTC SPOKESWOMAN DECLINES TO CONFIRM OR DENY THAT EITHER INVESTIGATION IS EVEN UNDER WAY SHE HADN'T ANY COMMENT ON CHARGES THAT THE AGENCY WORKS TOO SLOWLY ON INVESTIGATIONS FRANCHISEES GO PUBLIC WITH GRIPES ABOUT CURBS ON GOING PUBLIC COMPANIES OWNED BY ROY P SCHEID AND BYRON KELLER SUED FRANCHISER CHECKERS DRIVEIN RESTAURANTS INC LAST MONTH IN STATE COURT FOR HILLSBOROUGH COUNTY FLA SEEKING COURT CLEARANCE TO COMBINE THEIR ORLANDO OPERATIONS AND TAKE THE RESULTING ENTERPRISE PUBLIC THE TWO MEN SAY CHECKERS UNREASONABLY WITHHELD ITS CONSENT REQUIRED UNDER THEIR FRANCHISE CONTRACTS FOR SUCH A PLAN THE PLAN ORIGINALLY CALLED FOR A NUMBER OF CHECKERS FRANCHISEES TO COMBINE AND GO PUBLIC TOGETHER NOW THE PLAINTIFFS SEEK DAMAGES SAYING CHECKERS THROUGH BUYOUT OFFERS TO THE OTHER FRANCHISEES INTERFERED WITH THE ORIGINAL PLAN PAUL C CAMPBELL CHIEF FINANCIAL OFFICER CONFIRMS THAT THE FRANCHISER DID NOT GIVE CONSENT FOR SEVERAL REASONS WHICH I DON'T WANT TO GO INTO HE ADDS THAT DOESN'T MEAN WE WITHHELD OUR CONSENT BUT HE DECLINES TO COMMENT FURTHER THE COMPANY BASED IN CLEARWATER FLA SAYS IT WILL DEFEND ITSELF AGGRESSIVELY AND VIGOROUSLY IN COURT THE WOULDBE PARTNERS AREN'T ALONE IN THEIR FRUSTRATION FRANCHISEES INCREASINGLY SAY THEY CONSIDER FRANCHISE AGREEMENTS TO BE STACKED AGAINST THEM AND RESTRICTIONS ON HOW THEY CAN SELL THEIR PROPERTIES CAN ESPECIALLY CREATE PROBLEMS WHEN OTHER SOURCES OF FINANCING ARE UNAVAILABLE THEY SAY BUT SPECIALISTS SAY FRANCHISERS FREQUENTLY BALK AT FRANCHISEES' PLANS TO GO PUBLIC BELIEVING THAT INDIVIDUAL OWNERS ARE EASIER TO DEAL WITH THAN PUBLIC COMPANIES THE ORLANDO FRANCHISEES HAVE POTENTIALLY VALUABLE RIGHTS TO OPEN MORE UNITS BUT MR SCHEID SAYS BANK LENDING FOR SUCH PROJECTS IS TIGHT BRIEFS THE CALIFORNIA FRANCHISE ASSOCIATION A NEW REGIONAL TRADE GROUP PROMISES TO PROMOTE A HEALTHIER FRANCHISE ENVIRONMENT THE INTERNATIONAL FRANCHISE ASSOCIATION AND OTHER GROUPS WILL SPONSOR A CONFERENCE IN LOS ANGELES NEXT MONTH ON FRANCHISING OPPORTUNITIES FOR MINORITIES 9301220077 930122 MARKETING & MEDIA ADVERTISING PEPSI RETURNING TO ORIGINAL FOCUS ITS PROFITABLE YOUNGER GENERATION BY MICHAEL J MCCARTHY PEPSICO INC WHICH VEERED SHARPLY OUT OF TEENYBOPPER LAND WITH LAST YEAR'S GOTTA HAVE IT AD CAMPAIGN IS SHIFTING GEARS POURING AN ESTIMATED 7 MILLION INTO SUPER BOWL AIRTIME PEPSI IS REDIRECTING ITS CAMPAIGN TO SHARPEN ITS FOCUS ON THE FRANCHISE MOST IMPORTANT TO SOFT DRINK COMPANIES YOUTH AND IT'S DOING SO WHEN THE COLA BUSINESS IS BASICALLY FLAT AND THIRSTING FOR SOME FRESH IMAGERY PRODUCTS AND CAMPAIGNS DURING LAST YEAR'S SUPER BOWL PEPSI RAN A SERIES OF COMMERCIALS WHICH DREW MIXED REVIEWS TO INTRODUCE THE LINE GOTTA HAVE IT IN A STRATEGY SHIFT THOSE SPOTS PORTRAYED PEPSI DRINKERS YOUNG AND OLD TO TRY TO EXPAND THE PEPSI GENERATION TO INCLUDE OLDER AGE GROUPS BUT IN AN ADMISSION THAT IT DRIFTED TOO FAR FROM ITS FORTE PEPSI IS NOW SUPPLEMENTING THE LINE GOTTA HAVE IT WITH A NEW ONE BE YOUNG HAVE FUN DRINK PEPSI AND PEPSI WILL LAUNCH NEW SPOTS LAMPOONING WHAT CAN BE STUFFY INSTITUTIONS OF GROWING UP MARRIAGE MODERATION AND WATCHING PBS HOMEIMPROVEMENT AND COOKING SHOWS THE COMMERCIALS JUXTAPOSE THOSE IMAGES WITH SHOTS OF FRENETIC GYRATING TEENAGERS STUFFING WHOLE PIZZAS IN THEIR MOUTHS SPRITZING PEPSIS ON EACH OTHER SLIDING DOWN BANNISTERS AND JUMPING OFF WALLS ALTHOUGH THE EFFECTS OF AD CAMPAIGNS ON SALES ARE DIFFICULT TO MEASURE IT APPEARS THAT PEPSI'S LESS FOCUSED APPROACH DIDN'T WIN IT MUCH IF ANY ADVANTAGE IN THE SUPERMARKET FOR THE FIRST NINE MONTHS OF 1992 PEPSICOLA'S GROCERYSTORE MARKET SHARE DROPPED 02 PERCENTAGE POINT TO 148 ACCORDING TO BEVERAGE DIGEST COCACOLA'S FARED A LITTLE WORSE SLIPPING 04 POINT TO 149 JEFF CAMPBELL PEPSI'S SENIOR VICE PRESIDENT BRAND DEVELOPMENT SAYS THE SLUGGISH MARKET IS MAKING THE COMPANY REEXAMINE ALL ASPECTS OF ITS BUSINESS BUT THE ADVERTISING SHIFT WAS COMPELLED MORE BY STRUCTURAL CHANGES AT PEPSI OVER THE PAST YEAR OR SO PEPSI HAS BRANCHED INTO TEA FRUIT JUICES AND NOW TRANSPARENT COLA THE MORE OUR BRANDS PROLIFERATE THE MORE WE HAVE TO CLARIFY EACH BRAND'S DISTINCT REASON FOR BEING HE SAYS THAT IN TURN LED THE COMPANY BACK TO ITS LONGTIME POSITIONING OF PEPSI AS A DRINK FOR YOUTHS AND PEOPLE WHO ASPIRE TO BE LIKE THEM ON SUPER SUNDAY JAN 31 WHEN THE PROFESSIONAL FOOTBALL CHAMPIONSHIP SUPER BOWL GAME WILL BE PLAYED THE SLOGAN CHANGE WILL BE PART OF A DOUBLEBARRELED EFFORT THAT WILL INCLUDE THE HIGHESTPROFILE NATIONAL ADVERTISEMENT YET OF ITS COLORLESS CRYSTAL PEPSI ALONG WITH THE NEW PEPSI CAMPAIGN THOSE ARE MEANT TO REIGNITE THE SLUGGISH 34 BILLION COLA MARKET LAST YEAR DESPITE CHANGES IN PACKAGING LOGOTYPES AND ADVERTISING THE COLA MARKET AS A WHOLE GREW ONLY 05 THE LATEST INITIATIVE COMES FROM THE TOP FOR MORE THAN A YEAR CRAIG WEATHERUP PEPSICOLA NORTH AMERICA'S PRESIDENT HAS BEEN POUNDING THE DRUM FOR CHANGE PEPSI AND COKE FOR THAT MATTER NEED CREATIVE CAMPAIGNS AND PRODUCTS HE HAS SAID TO END WHAT HAS SEEMED LIKE A COLAWAR CEASEFIRE WHEN COKE AND PEPSI STIR IT UP ON THE AIRWAVES AS THEY DID IN RECENT YEARS WITH COMMERCIALS SNIPING AT EACH OTHER IT USUALLY GENERATES HIGHER SALES FOR BOTH TOWARD THAT END ONE OF THE PEPSI SUPER BOWL SPOTS SHOWS AN OLD MAN SIPPING FROM A STRAW IN A COCACOLA CAN AND NEARLY FALLING ASLEEP THE COMMERCIAL THEN CUTS TO THE SAME MAN REINVIGORATED CATCHING RAYS ON A CALIFORNIA BEACH AND WEARING A TSHIRT EMBLAZONED WITH EAT SURF DIE IN PREVIOUS COMMERCIALS PEPSI HAS PORTRAYED COKE AS A DRINK FOR OLD FOGIES A THEME THAT RILES ITS RIVAL MARKETERS IN ATLANTA BUT PEPSI WILL BE FLYING SOLO IN THE SUPER BOWL AGAIN THE FOOTBALL GAME USED TO BE THE SITE OF THE FIRST COKE/PEPSI BATTLE OF THE YEAR WITH THEIR SHOWCASE ADVERTISING BUT IN THE PAST TWO YEARS COKE HAS TAKEN A PASS THE TIMING WASN'T RIGHT THIS YEAR A COKE SPOKESMAN SAYS THE ATLANTABASED COMPANY ALREADY HAS INTRODUCED A DIET COKE CAMPAIGN TASTE IT ALL THIS MONTH AND A NEW ADVERTISING CAMPAIGN FOR COCACOLA CLASSIC ISN'T READY THE SPOKESMAN SAID COKE'S AD AGENCY MCCANNERICKSON SPENT MUCH OF LAST YEAR SEARCHING FOR A NEW SLOGAN WHICH LOOKS LIKE IT WILL BE SOMETHING ALONG THE LINES OF ALWAYS COKE PEPSI BOUGHT FIVE MINUTES OF COMMERCIAL TIME DURING THE GAME MORE THAN ANY OTHER ADVERTISER TWO OF THE SPOTS ONE OF 30 SECONDS AND ONE OF 60 SECONDS WILL BE FOR ITS TRANSPARENT CRYSTAL PEPSI THE REST WILL ATTEMPT TO REPOSITION PEPSI AS A TRENDY YOUTHFUL BEVERAGE ALL WERE PRODUCED BY OMNICOM GROUP'S BBDO BBDO ALSO SAYS PEPSI'S NEW CAMPAIGN MAY TAP INTO THE RECOVERY OF THE US ECONOMY AND OF CONSUMER CONFIDENCE WE DECIDED MAYBE IT WAS TIME TO RESTATE THE CONCEPT OF FUN WHICH WAS GETTING A BAD RAP IN THE EARLY 1990S AMID A SENSE OF DOOM AND GLOOM AND PREVAILING SERIOUSNESS SAYS TED SANN EXECUTIVE CREATIVE DIRECTOR FOR BBDO REEBOK INTERNATIONAL WILL USE ITS 120 SECONDS OF SUPER BOWL AD TIME TO INTRODUCE TWO CAMPAIGNS FOR 1993 FROM AGENCY CHIAT/DAY NEW YORK ENDORSER SHAQUILLE O'NEAL AND A GLOBAL EFFORT CALLED PLANET REEBOK FIRST ROOKIE O'NEAL MAKES HIS DEBUT ON BEHALF OF THE REEBOK BRAND IN A 60SECOND SPOT THAT HAS THE ORLANDO MAGIC'S NEW BASKETBALL STAR PROVE HIMSELF AS A SLAMDUNKER BEFORE FOUR LEGENDS OF THE GAME A SECOND SHAQ SPOT IS SET TO AIR DURING THE NATIONAL BASKETBALL ASSOCIATION ALLSTAR GAME NEXT MONTH LATER A 60SECOND SPOT INTRODUCES THE IDEA OF PLANET REEBOK MEANT TO REPRESENT A STATE OF MIND CORRESPONDING WITH PEAK PERFORMANCE ACCORDING TO DAVID ROPES VICE PRESIDENT OF ADVERTISING PLANET REEBOK IS DUE TO SHOW UP IN VARIOUS REEBOK ADS BOTH BROADCAST AND PRINT AND AT RETAIL STORES AND PROMOTIONAL EVENTS MR ROPES SAYS REEBOK HOPES THE IDEA WILL DO WHAT THE MARLBORO COUNTRY CAMPAIGN DID FOR PHILIP MORRIS'S FILTER CIGARETTES AND PEPSI GENERATION DID FOR THE NO 2 COLA HE SAYS IT'S INTENDED AS A BADGE THAT WILL BE AROUND FOR A LONG TIME REEBOK PLANS TO PUT ABOUT 50 MILLION OF ITS 1993 AD BUDGET OF 75 MILLION BEHIND PLANET REEBOK MR ROPES SAYS PARIS AGENCY EURO RSCG REEBOK'S PANEUROPEAN AGENCY AND CHICAGO AGENCY LEO BURNETT WHICH WORKS FOR REEBOK IN ASIA AND LATIN AMERICA WILL ADAPT THE PLANET REEBOK SPOTS FOR USE IN LOCAL MARKETS IN 70 COUNTRIES ACCOUNT POPEYES FAMOUS FRIED CHICKEN & BISCUITS TAPPED ATLANTA AGENCY FITZGERALD & CO FOR NATIONAL CREATIVE DUTIES A 6 MILLION ACCOUNT POPEYES A UNIT OF AMERICA'S FAVORITE CHICKEN INC PREVIOUSLY SPLIT ITS ADVERTISING BETWEEN GARFIELDLINN CHICAGO AND BERRYBROWN DALLAS THOSE SHOPS WILL CONTINUE TO HANDLE SOME DUTIES ON THE ACCOUNT WHOSE BILLINGS TOTAL 14 MILLION A YEAR SAID JOE GENOVESE EXECUTIVE VICE PRESIDENT OF MARKETING FITZGERALD SAID IT RESIGNED THE DOMINO'S PIZZA REGIONAL ACCOUNT UPON WINNING THE POPEYES BUSINESS 9301220076 930122 HOUSING FOR FARM WORKERS LANGUISHES YEARS OF NEGLECT LEAVE DEFICIT FOR CLINTON TEAM BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL AS A LONGTIME LIBERAL CAUSE THE EFFORT TO IMPROVE THE OFTEN DEPLORABLE HOUSING CONDITIONS OF FARM WORKERS COULD ATTRACT MORE SUPPORT NOW THAT A DEMOCRAT IS IN THE WHITE HOUSE INDEED BOTH PRESIDENT CLINTON AND HIS NEW AGRICULTURE SECRETARY MIKE ESPY HAVE SAID THEY FAVOR INCREASED ATTENTION TO RURAL DEVELOPMENT INCLUDING BETTER HOUSING WATER AND TELEPHONE SERVICE BUT SUCH A PROGRAM WOULDN'T NECESSARILY ADDRESS THE MIGRANT HOUSING ISSUE THAT'S BECAUSE LIKE WITH OTHER CHRONICALLY UNDERFUNDED PROGRAMS IT ISN'T CLEAR WHETHER ANYONE HAS A SOLUTION TO THE PROBLEM OR THE MONEY TO FIX IT THE 31YEAROLD FARMERS HOME ADMINISTRATION PROGRAM WHICH PROVIDES GRANTS AND SUBSIDIZED LONGTERM LOANS AT INTEREST RATES AS LOW AS 1 FOR CONSTRUCTION OF HOUSING FOR MOSTLY MIGRANT FARM WORKERS HAS LONG BEEN A VICTIM OF NEGLECT BUT IT ALSO SUFFERS FROM COMMUNITY OPPOSITION TO MIGRANT HOUSING AN INABILITY OF MANY FARMERS TO TAKE PART AND AN ECONOMIC SQUEEZE ON FARMERS WHO DO CONSIDER WHATCOM COUNTY WASH BERRY FARMER CURT MABERRY WHO TOOK OUT A 1 MILLION LOAN IN 1986 BELIEVED THE LARGEST EVER UNDER THE PROGRAM TO BUILD A MODEL CAMP FOR HIS SEASONAL MIGRANT WORKERS HIS CAMP FEATURES 40 THREEBEDROOM CABINS WITH FULL KITCHEN AND LAVATORY FACILITIES A RECREATION ROOM FOR CHURCH SERVICES BABY SHOWERS AND ENDOFHARVEST FIESTAS AND MANICURED LAWNS UPON WHICH CHILDREN FROLIC WHILE THEIR PARENTS TEND TO FIELDS OF STRAWBERRIES AND RASPBERRIES IN BUCOLIC NORTHWEST WASHINGTON NEAR THE CANADIAN LINE BUT THE HOUSING PROGRAM HAS BROUGHT HIM A BUSHEL BASKET OF GRIEF SOME OF THE OTHER FARMERS IN THE AREA CHIDE MR MABERRY FOR SPENDING TOO MUCH AND MAKING THEM LOOK BAD MIGRANT ACTIVISTS SAY HE IS TOO PATERNALISTIC TREATING WORKERS LIKE CHILDREN A FEW OF HIS OWN WORKERS COMPLAIN HE DOESN'T PROVIDE ENOUGH WORK AND AFTER A STRING OF SEVERE WINTERS WHEN BERRY FARMING CRATERED MANY OF HIS CABINS STOOD UNOCCUPIED WHILE MR MABERRY CONTINUED TO PAY OFF THE LOAN SINCE ITS INCEPTION IN 1962 THE PROGRAM HAS BUILT OR IMPROVED LESS THAN 30000 HOUSING UNITS A FEDERAL STUDY THAT WAS SHELVED WHEN PRESIDENT REAGAN TOOK POWER FOUND THAT AS OF 1980 AS MANY AS 800000 NEW OR REHABILITATED HOUSING UNITS WERE NEEDED JUST FOR MIGRANT WORKERS AT THE CURRENT RATE OF PRODUCTION IT WOULD TAKE 1350 YEARS TO MEET THE NEED THAT EXISTED A DECADE AGO WHICH WAS THE LAST TIME US FARM WORKER HOUSING DEMAND WAS DOCUMENTED WE CAN SAY WITH AN ASSURANCE THAT THE CURRENT NUMBERS OF PRODUCTION ARE ALMOST USELESS SAID ART COLLINGS A RETIRED SPECIAL ASSISTANT TO THE ADMINISTRATOR FOR FARMERS HOME EVEN DURING ITS PEAK FUNDING DURING THE CARTER ADMINISTRATION THE FARM WORKER HOUSING PROGRAM HAD A PALTRY ANNUAL BUDGET OF 69 MILLION THIS FELL TO A LOW OF 115 MILLION IN 1983 AND INCREASED TO JUST 295 MILLION UNDER PRESIDENT BUSH BY COMPARISON FARMERS HOME HAS PROVIDED MORE THAN 2 BILLION A YEAR IN ASSISTANCE FOR OVERALL RURAL HOUSING THE DEARTH OF FUNDING HAS BEEN THE PROGRAM'S BIGGEST PROBLEM ACCORDING TO THE 1980 DRAFT REPORT PREPARED FOR FARMERS HOME BUT IGNORED BY REAGAN APPOINTEES MR COLLINGS SAID THAT WHEN HE ASKED SUPERIORS WHATEVER HAPPENED TO THE REPORT THE BEST I COULD EVER GET OUT OF THEM WAS THAT THEY DISAVOWED IT LA VERNE AUSMAN FORMER ADMINISTRATOR OF FARMERS HOME UNDER PRESIDENT BUSH SAID HE DOESN'T KNOW WHAT HAPPENED TO THE REPORT IS THERE A NEED FOR MORE FARM WORKER HOUSING SURE THERE'S A NEED MR AUSMAN SAID BUT HE ADDED HE DOESN'T THINK THE PROGRAM HAS BEEN UNDERFUNDED SAYING THAT THE BILLIONS DISPENSED BY HIS AGENCY FOR RURAL HOUSING ALSO HELP PROVIDE HOUSING FOR FARM WORKERS WE'RE CHIPPING AWAY THE BEST WE CAN HE SAID RONNIE O THARRINGTON THE AGENCY'S ASSISTANT HOUSING ADMINISTRATOR SAID THE FEDERAL GOVERNMENT CAN'T BE EXPECTED TO SOLVE THE PROBLEM BY ITSELF HE SAID MANY FARMERS PROVIDE ADEQUATE HOUSING ON THEIR OWN MR AUSMAN ADDED THE GOVERNMENT HAS MINIMUM STANDARDS THAT PRESSURE FARMERS INTO IMPROVING THEIR HOUSING BUT HOUSING OFFICIALS AROUND THE COUNTRY SAY THE ENFORCEMENT IS OFTEN LAX AND INEFFECTIVE AND IN CASES WHERE IT IS RIGID MANY FARMERS WIND UP THROWING UP THEIR HANDS AND GETTING OUT OF THE HOUSING BUSINESS ADDING TO THE SHORTAGE IN CALIFORNIA FOR EXAMPLE THE NUMBER OF LICENSED LABOR CAMPS HAS FALLEN BY MORE THAN ONEFIFTH OVER THE PAST DECADE ALTHOUGH NONPROFIT AGENCIES AND LOCAL HOUSING AUTHORITIES ARE ENTITLED TO SOME OF THE MONEY FARMERS HOME OFFICIALS HAVE ALSO ENCOUNTERED OPPOSITION FROM COMMUNITIES WHERE NEW WORKERS' QUARTERS HAD BEEN SLATED TOWNSPEOPLE SAID WE LIKE YOUR HOUSING BUT WE'RE AFRAID OF YOUR PEOPLE MR COLLINGS SAID THIS NOTINMYBACKYARD SENTIMENT HAS CONTRIBUTED TO A VERY UNEVEN DISTRIBUTION OF FARM WORKER HOUSING THROUGHOUT THE COUNTRY ACCORDING TO THE SHELVED FARMERS HOME REPORT SIX OF THE TOP 10 STATES WITH MIGRANT WORKERS NEW JERSEY ILLINOIS NORTH CAROLINA SOUTH CAROLINA OHIO AND MINNESOTA HAD RECEIVED NO FARM WORKER HOUSING FUNDING WHATSOEVER ANOTHER PROBLEM IS THAT THE VAST MAJORITY OF THE FAMILY FARM OPERATORS FOR WHOM THE PROGRAM WAS INTENDED ARE TOO STRAPPED FOR CASH TO PARTICIPATE EVEN AT THE 1 FIXEDRATE LOANS THE GOVERNMENT OFFERS OVER A 33YEAR PERIOD WHAT'S MORE THE RULES ARE SO CUMBERSOME THAT ONE FARMER SAID HE SPENT TWO YEARS WADING THROUGH THE PAPER WORK BEFORE HIS LOAN WAS APPROVED FARMERS WHO PARTICIPATE ALSO HAVE MIXED FEELINGS HERMAN PELLEBOER A FORMER BERRY FARMER IN WHATCOM COUNTY WASH BUILT A 12CABIN MIGRANT CAMP WITH A 359000 GOVERNMENT LOAN HE HAS SOLD HIS 100ACRE FARM BECAUSE COSTS SUCH AS CAMP UPKEEP PROVED TOO MUCH IF YOU DON'T HAVE A GOOD CROP YOU DON'T MAKE IT SAID MR PELLEBOER WHO IS NOW A MAINTENANCE WORKER FOR A LOCAL SCHOOL DISTRICT 9301220075 930122 BUSINESS BRIEF TANDEM COMPUTERS INC NET INCOME OF 175 MILLION POSTED FOR FISCAL 1ST QUARTER WITH RESTRUCTURING COSTS BEHIND IT TANDEM COMPUTERS INC CUPERTINO CALIF POSTED A FISCAL FIRSTQUARTER PROFIT OF 175 MILLION OR 16 CENTS A SHARE COMPARED WITH A LOSS A YEAR EARLIER THE COMPANY CITED COST CONTAINMENT AND UNSEASONABLY GOOD REVENUE GROWTH FOR ITS RETURN TO PROFITABILITY THE PERIOD ENDED DEC 31 ALSO REFLECTS A GAIN OF 124 MILLION OR 11 CENTS A SHARE FROM AN ACCOUNTING CHANGE IN LAST YEAR'S FIRST QUARTER TANDEM TOOK A RESTRUCTURING CHARGE OF 805 MILLION OR 74 CENTS A SHARE RESULTING IN A LOSS OF 946 MILLION OR 88 CENTS A SHARE REVENUE ROSE 6 TO 4839 MILLION FROM 4545 MILLION DESPITE TOUGH ECONOMIC CONDITIONS AND A HISTORY OF SEASONAL SLUGGISHNESS IN THE COMPANY'S FISCAL FIRST PERIOD JAMES TREYBIG PRESIDENT AND CHIEF EXECUTIVE SAID 9301220074 930122 MARKETING & MEDIA MUSIC PUBLISHER SUES DISNEY OVER USE OF RITE OF SPRING' FIRM ALLEGES FANTASIA' VIDEO EXCEEDS SCOPE OF LICENSE GRANTED BY IGOR STRAVINSKY BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL THE MUSIC PUBLISHER THAT HOLDS THE RIGHTS TO IGOR STRAVINSKY'S RITE OF SPRING SUED WALT DISNEY CO OVER THE USE OF THE BALLET MUSIC IN THE HOME VIDEO RELEASE OF THE 1940 MOVIE FANTASIA THE SUIT FILED IN A NEW YORK FEDERAL COURT BY LONDONBASED BOOSEY & HAWKES MUSIC PUBLISHERS LTD IS THE LATEST IN A NUMBER OF LEGAL ACTIONS INVOLVING THE RIGHTS OF ARTISTS TO A SHARE OF PROFITS FROM VIDEO VERSIONS OF DISNEY MOTION PICTURES LAST MAY IN FACT THE PHILADELPHIA ORCHESTRA FILED SUIT IN FEDERAL COURT CLAIMING JOINT AUTHORSHIP OF THE FILM FOR WHICH IT PROVIDED THE MUSIC DISNEY HAS SUED THE ESTATE OF LEOPOLD STOKOWSKI THE LATE DIRECTOR OF THE ORCHESTRA IN A PHILADELPHIA FEDERAL COURT TO OBTAIN A DECLARATORY JUDGMENT CONFIRMING DISNEY'S OWNERSHIP OF FANTASIA JODY POPE AN ATTORNEY FOR BOOSEY & HAWKES SAID THAT IN THE RITE OF SPRING CASE DISNEY WILLFULLY VIOLATED HIS CLIENT'S RIGHTS BECAUSE THE COMPANY KNEW WHEN THEY RERELEASED THE MOVIE THEY DIDN'T HAVE RIGHTS IN VIDEO BOOSEY & HAWKES CLAIMS OWNERSHIP OF FANTASIA UNDER A 1947 AGREEMENT WITH MR STRAVINSKY WHO COMPOSED MUSIC THAT WAS USED IN THE WORK FANTASIA IS ONE OF THE MOST SUCCESSFUL VIDEOS EVER THE SUIT ALLEGES THAT DISNEY'S VIDEO DISTRIBUTION OF RITE OF SPRING WITHIN THE MOVIE EXCEEDS THE SCOPE OF A 1939 LICENSE GRANTED BY MR STRAVINSKY TO DISNEY BY ITS TERMS THE LICENSE WAS LIMITED TO ONE MOTION PICTURE TO BE EXHIBITED ONLY IN THEATERS THE SUIT SAYS MR POPE SAID DISNEY'S ALLEGED OVERREACHING SHOULD BE OBVIOUS BECAUSE VIDEO TECHNOLOGY DIDN'T EXIST IN 1939 AND BECAUSE THE COMPOSER EXPLICITLY RESERVED ALL RIGHTS NOT GRANTED IN THE 1939 LICENSE NOBODY READING THE LICENSE COULD BELIEVE THAT STRAVINSKY INTENDED TO GRANT ANYTHING OTHER THAN THE RIGHT TO REPRODUCE THE WORK IN A MOTION PICTURE MR POPE SAID SANDY LITVACK CHIEF COUNSEL FOR WALT DISNEY SAID HE HADN'T SEEN THE LAWSUIT AND WOULDN'T COMMENT ON ITS ALLEGATIONS THE MOST HIGHPROFILE AMONG THE RECENT SPATE OF DISNEY ANIMATION SUITS DOGGING THE COMPANY IS THE 1988 ACTION BY SINGER PEGGY LEE WHO WROTE AND RECORDED SEVERAL OF THE SONGS FOR LADY AND THE TRAMP WHICH LED A LOS ANGELES JURY TO AWARD HER 23 MILLION IN DAMAGES IN 1991 IN A LATER CASE DISNEY SETTLED WITH THE WOMAN WHO PROVIDED THE VOICE FOR SLEEPING BEAUTY LAST SEPTEMBER A FEDERAL APPEALS COURT LIFTED A LOWER COURT ORDER THAT LIMITED HOW THE COMPANY COULD USE ITS WHEN YOU WISH UPON A STAR THEME SONG THAT CASE HAD BEEN BROUGHT BY THE ESTATE OF IRVING BERLIN WHO WROTE THE TUNE IN 1939 FOR THE MOVIE PINOCCHIO IN AN INTERESTING WRINKLE THE ATTORNEY FOR BOOSEY & HAWKES DIDN'T ALLEGE US COPYRIGHT INFRINGEMENT BECAUSE THE US WASN'T A SIGNATORY TO THE BERNE CONVENTION OF 1886 WHICH PROTECTED SUCH LITERARY WORKS MR STRAVINSKY A RUSSIAN NATIONAL WAS ENTITLED HOWEVER TO COPYRIGHT PROTECTION FROM BERNE NATIONS FRANCE GERMANY BRITAIN AND OTHERS AND BOOSEY & HAWKES IS SEEKING DAMAGES ARISING OUT OF DISNEY'S DISTRIBUTION OF THE RITE OF SPRING AS THE SUCCESSOR TO STRAVINSKY'S RIGHTS IN THESE NATIONS THE LAWSUIT ALLEGES THAT FANTASIA HAS GENERATED 220 MILLION IN REVENUE FOR DISNEY SINCE ITS 1991 VIDEOCASSETTE RELEASE AND THAT DAMAGES TO THE PLAINTIFF ARE IN EXCESS OF 200 MILLION 9301220073 930122 BUSINESS BRIEF ADIENCE INC VOTING DEADLINE IS EXTENDED A WEEK ON REORGANIZATION ADIENCE INC PITTSBURGH SAID IT EXTENDED THE DEADLINE FOR ITS PREPETITION SOLICITATION OF VOTES FOR A PREPACKAGED REORGANIZATION PLAN UNDER CHAPTER 11 OF THE BANKRUPTCY CODE TO 4 PM EST THURSDAY FROM 4 PM YESTERDAY THE PRIVATE MANUFACTURER SAID THAT AS OF THE END OF YESTERDAY IT HAD RECEIVED VOTES IN FAVOR OF THE PLAN FROM HOLDERS OF MORE THAN 998 OF ITS COMMON STOCK HOLDERS OF MORE THAN 90 OF ITS SENIOR SUBORDINATED RESET NOTES DUE 1999 HAVE ALSO APPROVED THE PLAN THE COMPANY SAID ADIENCE OPERATES TWO BUSINESS UNITS THE HEAT TECHNOLOGY GROUP AND THE INFORMATION DISPLAY TECHNOLOGY GROUP THE COMPANY OWNS 802 OF PUBLICLY TRADED INFORMATION DISPLAY TECHNOLOGY INC ALSO BASED IN PITTSBURGH 9301220072 930122 ABREAST OF THE MARKET INDUSTRIALS GAIN 1107 ON STRENGTH IN BONDS FUTURESRELATED BUYING BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A STRONGER BOND MARKET AND A BOUT OF FUTURESRELATED BUYING LIFTED STOCKS TO THEIR FIRST DECISIVE GAIN OF THE WEEK THE STANDARD & POOR'S 500STOCK INDEX GAINED 212 OR 049 TO 43549 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 093 POINT OR 039 TO 23982 STOCKS HAD THE OPPORTUNITY TO GO DOWN BUT THEY DIDN'T SAID JACK SOLOMON A TECHNICAL ANALYST AT BEAR STEARNS COMMENTS FROM PRESIDENT CLINTON'S NOMINEE TO HEAD THE COUNCIL OF ECONOMIC ADVISORS LAURA D'ANDREA TYSON GAVE BONDS A FIRMER TONE ANALYSTS SAID SHE SUGGESTED THAT SOME ECONOMISTS' FORECAST FOR 3 GROWTH IN GROSS DOMESTIC PRODUCT IS CONSISTENT WITH THE ADMINISTRATION'S EXPECTATIONS A FLURRY OF FUTURESRELATED BUYING FUELED THE UPSIDE MOMENTUM AMERICAN TELEPHONE & TELEGRAPH AND INTERNATIONAL PAPER LED THE CHARGE AMONG BLUECHIP ISSUES NEWS THAT AT&T AND SIX OTHER CONCERNS FORMED A PROGRAM TO FACILITATE INTERNATIONAL GROWTH FOR SMALL AND MEDIUMSIZED BUSINESSES TUGGED THE TELECOMMUNICATIONS CONCERN'S STOCK UP 1 1/4 TO 55 1/8 ANOTHER CORPORATION IN THE PROGRAM ITT GAINED 2 TO 74 1/2 INTERNATIONAL PAPER ROSE 1 1/4 TO 63 1/8 AMID AN INDUSTRYWIDE UPSWING CHAMPION INTERNATIONAL WAS UP 1 1/4 TO 28 7/8 AND UNION CAMP ROSE 1/2 TO 44 1/2 DESPITE RELEASING FOURTHQUARTER EARNINGS OF 19 CENTS A SHARE DOWN FROM YEAREARLIER NET OF 34 CENTS A SHARE FEDERAL PAPER ADVANCED 1/2 TO 23 3/4 TRANSPORTATION STOCKS SHRANK WITH THE DOW JONES TRANSPORTATION AVERAGE EASING 987 POINTS OR 066 TO 149070 AIRBORNE FREIGHT FELL 5/8 TO 20 7/8 XTRA SLUMPED 2 5/8 TO 67 3/4 AND UAL FELL 1 7/8 TO 126 1/8 VOLUME SLOWED SLIGHTLY FROM WEDNESDAY'S 267740000 SHARES AS 257350000 SHARES CHANGED HANDS ON THE BIG BOARD ADVANCING ISSUES OUTPACED DECLINERS 1008 TO 806 TOPPING THE LIST OF ACTIVE EQUITIES WAS TANDEM COMPUTERS WHICH DROPPED 2 TO 14 1/8 THE CUPERTINO CALIF SOFTWARE DEVELOPER POSTED A FISCAL FIRSTQUARTER PROFIT OF 16 CENTS A SHARE OR 175 MILLION LAST YEAR IT RECORDED A LOSS OF 88 CENTS A SHARE OR 946 MILLION WHICH INCLUDED AN 805 MILLION RESTRUCTURING CHARGE ABOUT EIGHT MILLION TANDEM SHARES WERE TRADED CURTISSWRIGHT JUMPED 5 1/8 TO 38 1/4 TO TRY TO MAXIMIZE SHAREHOLDER VALUE THE LYNDHURST NJ PROVIDER OF JET ENGINE SERVICES SAID IT IS EXPLORING SELLING ITS FLIGHT SYSTEMS AND METAL IMPROVEMENT CO UNITS WHICH TOGETHER ACCOUNTED FOR ABOUT 80 OF THE COMPANY'S 1992 REVENUE COMPUTER ASSOCIATES INTERNATIONAL SURGED 4 1/4 TO 25 1/4 THE ISLANDIA NY SOFTWARE DEVELOPER RECORDED FISCAL THIRDQUARTER NET INCOME OF 48 CENTS A SHARE OR 802 MILLION UP FROM 31 CENTS A SHARE OR 542 MILLION A YEAR EARLIER MCDONNELL DOUGLAS SHOT 2 1/2 HIGHER TO 56 1/2 THE ST LOUISBASED AEROSPACE COMPANY HAD FOURTHQUARTER EARNINGS OF 1946 A SHARE OR 762 MILLION INCLUDING A 676 MILLION GAIN FROM A REDUCTION IN RETIREE HEALTH CARE LIABILITIES A YEAR EARLIER IT HAD NET OF 550 A SHARE OR 211 MILLION AFTER A GAIN OF 32 MILLION OR 83 CENTS A SHARE FROM A TAX SETTLEMENT ANTHEM ELECTRONICS TUMBLED 2 1/4 TO 46 THE SAN JOSE CALIF SEMICONDUCTOR COMPANY POSTED FOURTHQUARTER PROFIT OF 64 CENTS A SHARE OR 79 MILLION UP FROM YEAREARLIER NET OF 51 CENTS A SHARE OR 61 MILLION ANALYSTS HAD EXPECTED HIGHER EARNINGS IN THE LATEST QUARTER QMS ROSE 2 TO 15 THE MOBILE ALA COMPUTER PARTS MAKER REPORTED FISCAL FIRSTQUARTER EARNINGS OF 13 CENTS A SHARE OR 13 MILLION UP FROM YEAREARLIER NET OF THREE CENTS A SHARE OR 323000 INTERTAN SLID 1 1/2 TO 9 THE CANADIAN CONSUMER ELECTRONICS MARKETER REPORTED FISCAL SECONDQUARTER NET OF TWO CENTS A SHARE OR 152000 COMPARED WITH 49 CENTS A SHARE OR 43 MILLION JENNY CRAIG FELL 1 7/8 TO 17 1/4 THE DEL MAR CALIF WEIGHTLOSS CHAIN REPORTED FISCAL SECONDQUARTER NET OF 25 CENTS A SHARE OR 68 MILLION COMPARED WITH EIGHT CENTS A SHARE OR 21 MILLION EARNINGS A YEAR EARLIER INCLUDED A CHARGE OF 24 CENTS A SHARE OR 62 MILLION FROM EARLY PAYMENT OF DEBT MANY ANALYSTS WERE EXPECTING SLIGHTLY HIGHER PERSHARE EARNINGS IN THE LATEST PERIOD FIRST DATA FELL 1 3/4 TO 34 1/4 THE NEW YORKBASED DATA PROCESSOR HAD FOURTHQUARTER NET OF 39 CENTS A SHARE OR 433 MILLION COMPARED WITH 35 CENTS A SHARE OR 368 MILLION T2 MEDICAL SLIPPED 1 TO 24 3/8 THE ALPHARETTA GA PROVIDER OF HOME INFUSION THERAPY REPORTED FISCAL FIRSTQUARTER NET OF 44 CENTS A SHARE OR 166 MILLION THAT COMPARES WITH YEAREARLIER EARNINGS OF 35 CENTS A SHARE OR 134 MILLION PPG INDUSTRIES INCHED 1/8 LOWER TO 61 3/4 THE PITTSBURGHBASED GLASS MAKER POSTED FOURTHQUARTER PROFIT OF 64 CENTS A SHARE OR 679 MILLION COMPARED WITH 29 CENTS A SHARE OR 315 MILLION YEAREARLIER FIGURES INCLUDE A 268 MILLION PRETAX RESTRUCTURING CHARGE 9301220071 930122 CLINTON'S OPTIONS TAX INCREASES SEEM INEVITABLE INCLUDING SOME ON MIDDLE CLASS PRESIDENT'S ADVISERS FAVOR TARGETING USE OF ENERGY RICH ARE SURE TO BE HIT SACRIFICES' TO CUT THE DEFICIT BY DAVID WESSEL AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH 300 BILLION BUDGET DEFICITS LOOMING AS FAR AS THE EYE CAN SEE AND A NEW PRESIDENT PREACHING ABOUT SACRIFICE IN HIS INAUGURAL ADDRESS YOU KNOW A BIG TAX INCREASE IS COMING BUT HOW BIG AND WHO PAYS PRESIDENT CLINTON HASN'T MADE FINAL DECISIONS AND HIS ADVISERS ARE LEARNING HE DOESN'T ALWAYS TAKE THEIR ADVICE BUT THE CHOICES HE FACES AND THE THINKING OF HIS ECONOMIC TEAM ARE BECOMING CLEARER HOW LARGE A TAX INCREASE WILL HE SEEK MANY OF HIS ADVISERS SAY AT LEAST 50 BILLION A YEAR AND PROBABLY MORE WILL BE NEEDED THE LAST TIME FEDERAL TAXES WERE INCREASED IN 1990 THEY WENT UP ROUGHLY 35 BILLION A YEAR AND WHICH TAXES HIGHER INCOME TAXES ON THE RICH ARE A CERTAINTY TAXING MORE OF THEIR SOCIAL SECURITY BENEFITS IS LIKELY TOO CLOSING A FEW CORPORATE TAX LOOPHOLES IS ALSO A GOOD BET AND INCREASED TAXES ON CIGARETTES AND LIQUOR ARE POSSIBILITIES BUT TO GET THE BIG BUCKS MR CLINTON NEEDS HIS ECONOMIC TEAM WILL HAVE TO LOOK AT TAXES NEARLY EVERYONE WOULD PAY INCLUDING THE MIDDLE CLASS WHOSE TAXES HE PLEDGED TO CUT AT SOME POINT IF WE'RE GOING TO DO SOMETHING ABOUT THE DEFICIT MIDDLECLASS PEOPLE ARE GOING TO PAY MORE TAXES SAYS GLENN HUBBARD AN ECONOMIST FREE TO BE CANDID NOW THAT HE IS BACK TEACHING AT COLUMBIA UNIVERSITY'S BUSINESS SCHOOL INSTEAD OF ADVISING THE BUSH TREASURY AT THE TOP OF THE LIST FOR MANY CLINTON ADVISERS TAXING ENERGY CONSUMPTION ALREADY THE PROSPECT OF HIGHER MOTORFUELS TAXES OR BROADER LEVIES ON ENERGY IS SPARKING PUBLICRELATIONS AND LOBBYING OFFENSIVES DOMESTIC OIL PRODUCERS WANT AN OILIMPORT FEE AUTO PRODUCERS ARE BACKING THE IDEA OF A HIGHER GASOLINE TAX ALTHOUGH TRUCKERS WANT ANYTHING BUT A HIGHER FUEL TAX ENVIRONMENTALISTS WANT TO TAX ONLY ENERGY THAT POLLUTES ENERGYINTENSIVE INDUSTRIES FRET THAT AN ENERGY TAX WILL PUT THEM AT A DISADVANTAGE AGAINST FOREIGN COMPETITORS OF COURSE MR CLINTON HAS YET TO PROVE THAT HE IS WILLING TO DO MORE THAN TALK ABOUT CUTTING THE DEFICIT THE TALK IS TOUGH WE MUST INVEST MORE IN OUR OWN PEOPLE AND AT THE SAME TIME CUT OUR MASSIVE DEBT MR CLINTON SAID FROM THE STEPS OF THE CAPITOL WEDNESDAY IT WILL NOT BE EASY IT WILL REQUIRE SACRIFICE MR CLINTON MAY NOT YET REALIZE JUST HOW MUCH SACRIFICE WILL BE REQUIRED TO MEET HIS LATEST DEFICITCUTTING PROMISE TO SLICE AT LEAST 145 BILLION IN FISCAL 1997 WHICH BEGINS A MONTH BEFORE THE 1996 ELECTIONS THE CLOSER HE LOOKS THE MORE PAINFUL THE REQUIRED SPENDING CUTS AND TAX INCREASES WILL SEEM ALREADY MR CLINTON IS PRIVATELY SHOWING ANGER AT THE WORD FROM HIS HEALTH EXPERTS THAT HE CAN'T EXPECT TO SAVE MUCH MONEY FROM HEALTHCARE REFORM IN THE NEXT SEVERAL YEARS IN THE NEXT FEW WEEKS THE TEMPTATION WILL BE TO SUBSTITUTE BUDGET GIMMICKRY FOR SACRIFICE BUT EVEN WITH GIMMICKRY THE TIMEHONORED PRACTICE OF EXAGGERATING THE SAVINGS TO BE ACHIEVED FROM VARIOUS PROPOSALS MR CLINTON IS STILL LIKELY TO END UP SEEKING A BIG TAX INCREASE BOTH TO REDUCE THE DEFICIT AND TO FINANCE SOME OF HIS PROMISED SPENDING INCREASES THERE'S NO SIMPLE ANSWER TO THE DEFICIT LAURA TYSON NOMINATED TO HEAD THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS TOLD THE SENATE BANKING COMMITTEE YESTERDAY DURING HER CONFIRMATION HEARING WE NEED TO HAVE THE POLITICAL COURAGE TO CONSIDER ALL THE OPTIONS AVAILABLE TO US EVEN IF MR CLINTON OVERCOMES THE DAUNTING TASK OF FINDING A WAY TO MAKE THE NUMBERS WORK HOWEVER LAWMAKERS ARE SURE TO TRY TO PUT THEIR OWN IMPRINT ON ANY TAX PLAN THAT COMES BEFORE THEM NONETHELESS CONGRESSIONAL LEADERS HAVE PLEDGED TO WORK WITH MR CLINTON THE FIRST MEMBER OF THEIR OWN PARTY TO OCCUPY THE WHITE HOUSE IN MORE THAN A DECADE THE PLAN THAT MR CLINTON IS TO UNVEIL NEXT MONTH WON'T RELY ON TAX INCREASES EXCLUSIVELY OF COURSE MR CLINTON'S BUDGET DIRECTOR LEON PANETTA PLEDGED AT HIS CONFIRMATION HEARINGS THAT SPENDING WOULD BE CUT BY 2 FOR EVERY 1 IN TAX INCREASES DEFENSE SPENDING IS BOUND TO BE REDUCED MORE THAN FORMER PRESIDENT BUSH PROPOSED GOVERNMENT BENEFIT PROGRAMS OUTSIDE OF HEALTH MAY BE SQUEEZED BUT SPENDING ON DOMESTIC PROGRAMS WHICH REPRESENT 15 OF FEDERAL OUTLAYS IS MORE LIKELY TO GROW THAN SHRINK WE ARE DUBIOUS ABOUT HOW MUCH SPENDING RESTRAINT CAN ACTUALLY BE EXERCISED SAYS BRUCE STEINBERG AN ECONOMIST AT MERRILL LYNCH & CO GIVEN THE REALITIES HE ADDS HIGHER TAXES WILL BE NEEDED AND MR PANETTA AND TREASURY SECRETARY LLOYD BENTSEN HAVE SAID AS MUCH HERE ARE THE TAXINCREASE OPTIONS MR CLINTON FACES AS HE LOOKS FOR THE REVENUE NEEDED TO FINANCE HIS SPENDING PROGRAMS AND BRING DOWN THE DEFICIT TODAY THE FEDERAL GOVERNMENT GETS MORE THAN 80 OF ALL ITS RECEIPTS FROM THE PERSONAL INCOME TAX AND THE PAYROLL TAX THAT FINANCES SOCIAL SECURITY AND MEDICARE MR CLINTON PLEDGED TO RAISE THE TOP MARGINAL INCOMETAX RATE ON INDIVIDUALS TO 36 FROM A STATED MAXIMUM OF 31 AND IMPOSE A SURTAX ON MILLIONAIRES THE TWO ACTIONS COMBINED WOULD YIELD ROUGHLY 15 BILLION A YEAR IF THE GOVERNMENT TAXES 85 INSTEAD OF THE CURRENT 50 OF SOCIAL SECURITY BENEFITS PAID TO COUPLES EARNING MORE THAN 32000 A YEAR HE COULD COME UP WITH ANOTHER 7 BILLION OR SO INCREASING THE PAYROLL TAX TO RAISE MONEY IS UNLIKELY BECAUSE IT ALREADY HITS LOWER AND MIDDLEINCOME WORKERS HARD MR CLINTON MIGHT HOWEVER FURTHER PINCH UPPERINCOME WAGE EARNERS BY SUBJECTING MORE OF THEIR WAGES TO SOCIAL SECURITY AND MEDICARE TAXES WAGES ABOVE 55500 ESCAPE SOCIAL SECURITY TAXES AND THOSE ABOVE 135000 ESCAPE MEDICARE TAXES SUBJECTING ALL WAGES TO THE 145 MEDICARE TAX WOULD RAISE 6 BILLION A YEAR CORPORATE TAXES BRING IN ONLY ABOUT 9 OF ALL FEDERAL RECEIPTS NOW MR CLINTON HASN'T EVER DISCUSSED RAISING THE CORPORATETAX RATE PER SE BUT HIS ADVISERS TALK A LOT ABOUT CLOSING CORPORATE LOOPHOLES ONE OPTION CLINTON ADVISERS HAVE CONSIDERED IS TO PERMIT COMPANIES TO DEDUCT ONLY HALF WHAT THEY SPEND ON MEALS AND ENTERTAINMENT INSTEAD OF THE CURRENT 85 WHICH WOULD BRING IN 35 BILLION OR SO A YEAR ALTHOUGH SOME CLINTON ADVISERS SEE POTENTIAL FOR TENS OF BILLIONS OF DOLLARS FROM SUCH LOOPHOLE CLOSERS IT'S FAR FROM CLEAR THAT THE PRESIDENT OR HIS TREASURY SECRETARY WHO HAS PROTECTED SOME OF THOSE SAME TAX PROVISIONS FOR YEARS WOULD GO ALONG THE FEDERAL TAX ON ESTATES AND ON SIZABLE GIFTS THAT RICH PEOPLE MAKE CURRENTLY REPRESENTS ONLY ABOUT 1 OF ALL FEDERAL RECEIPTS FOR A PRESIDENT WHO HAS MADE SO MUCH NOISE ABOUT SOAKING THE RICH IT'S AN OBVIOUS PLACE TO LOOK MR CLINTON HAS SAID HE WOULD CONSIDER ENDING THE EXEMPTION FOR CAPITAL GAINS HELD WHEN A PERSON DIES A PROPOSAL THAT HIS ALLIES AT THE CENTRIST PROGRESSIVE POLICY INSTITUTE SAY WOULD RAISE 4 BILLION TO 5 BILLION A YEAR BUT IN WRITTEN ANSWERS TO QUESTIONS POSED BY THE SENATE FINANCE COMMITTEE AND RELEASED YESTERDAY TREASURY SECRETARY BENTSEN EMPHASIZED THE NUMEROUS PRACTICAL ADMINISTRATIVE AND POLITICAL PROBLEMS PROPOSALS TO TINKER WITH THE ESTATE TAX OR TO LIMIT THE AMOUNT OF GIFTS THAT THE WEALTHY MAKE DURING THEIR LIFETIMES ARE CIRCULATING THE ALTERNATIVE TO TAXING INCOME IS TAXING SPENDING OR CONSUMPTION THE FEDERAL GOVERNMENT NOW GETS ONLY ABOUT 4 OF ITS REVENUE FROM SUCH TAXES PRIMARILY TAXES ON CIGARETTES ALCOHOL AND GASOLINE MANY STATE AND LOCAL GOVERNMENTS HOWEVER RELY HEAVILY ON SALES TAXES ECONOMIC AND POLITICAL LOGIC IS DRIVING MR CLINTON'S ADVISERS TO CONSIDER RAISING FEDERAL CONSUMPTION TAXES WE SHOULD BE LOOKING AT TAXING THE THINGS WE DON'T WANT TO HAVE HAPPEN POLLUTION AND EXCESSIVE USE OF ENERGY AS AN ALTERNATIVE TO TAXING THE THINGS WE DO WANT WORK AND SAVINGS ALICE RIVLIN MR CLINTON'S CHOICE FOR DEPUTY BUDGET DIRECTOR SAID AT LAST MONTH'S ECONOMIC POWWOW IN LITTLE ROCK ARK THE US HAS FLIRTED WITH CONSUMPTION TAXES FOR DECADES FIFTY YEARS AGO TREASURY SECRETARY HENRY MORGANTHAU PROPOSED A TAX ON SPENDING TWENTY YEARS AGO RICHARD NIXON CAME CLOSE TO PROPOSING A VALUEADDED TAX A SORT OF NATIONAL SALES TAX LAST YEAR TREASURY SECRETARY NICHOLAS BRADY URGED THE BUSH WHITE HOUSE TO EMBRACE A VERSION THAT WOULD HAVE BEEN COLLECTED BY BUSINESSES TODAY ECONOMISTS ARGUE FOR TAXING CONSUMPTION MORE HEAVILY BECAUSE MANY BELIEVE IT WOULD ENCOURAGE AMERICANS TO SPEND LESS AND SAVE MORE THE STANDARD ECONOMISTS' PRESCRIPTION FOR WHAT AILS THE ECONOMY SINCE THE US CURRENTLY HAS THE LOWEST LEVEL OF CONSUMPTION TAXES OF ANY INDUSTRIAL COUNTRY AS WELL AS THE LOWEST PRIVATE SAVINGS RATE IT DOESN'T REQUIRE MUCH IMAGINATION TO CONCLUDE THAT THE US SHOULD PROBABLY EXPAND ITS USE OF CONSUMPTION TAXES SAYS DAVID HALE CHIEF ECONOMIST AT KEMPER FINANCIAL COS DESPITE A FLURRY OF CONGRESSIONAL AND ACADEMIC INTEREST IN A BROAD CONSUMPTION TAX SUCH AS THE VALUEADDED TAXES WIDELY USED ABROAD THAT'S PROBABLY TOO RADICAL A MOVE FOR MR CLINTON'S TEAM EVERY COUNTRY THAT HAS PUT IN A CONSUMPTION TAX HAS FACED REBELLION SAYS GARY HUFBAUER A FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IT WAS TRUE IN JAPAN AND CANADA INCREASING TAXES ON ALCOHOL AND CIGARETTES WHICH COULD BRING IN MORE THAN 5 BILLION A YEAR MAY BE MORE PALATABLE MR CLINTON COULD PLAUSIBLY ARGUE THAT ANYTHING THE GOVERNMENT DOES TO DISCOURAGE SMOKING AND DRINKING WOULD IMPROVE PUBLIC HEALTH THE POLITICS CAN BE TRICKY THOUGH NO ONE WHO PARTICIPATED IN THE BUDGET SUMMIT OF 1990 AND SWAM THROUGH THE ENDLESS TEARS SHED FOR JOE SIX PACK AND LEARNED THAT MORE THAN 40 OF OUR STATES PRODUCE SOME WINE AND WOULD LIKE TO PRODUCE AS MUCH AS CALIFORNIA OR FRANCE WOULD UNDERESTIMATE THE POLITICAL DIFFICULTIES OF ENACTING THESE TAX INCREASES SAYS MICHAEL GRAETZ A FORMER TREASURY TAX OFFICIAL ONE BIG RUB IS THAT TAXES ON CONSUMPTION TEND TO BE REGRESSIVE POOR PEOPLE SPEND NEARLY ALL THEIR INCOME WHILE THE RICH SAVE MUCH OF THEIRS SO ANY NEW TAX ON CONSUMPTION PROBABLY WOULD HAVE TO BE COMBINED WITH TAX BREAKS OR ADDED SPENDING TO CUSHION THE EFFECT ON THE POOR INSTEAD OF THE IDEA OF TAXING ALL FORMS OF CONSUMPTION SEVERAL OF MR CLINTON'S ADVISERS ARE LOOKING TO INCREASE TAXES ON ENERGY CONSUMPTION EITHER BY RAISING THE GASOLINE TAX OR BY IMPOSING NEW BROADER ENERGY TAXES SUCH TAXES DON'T ONLY RAISE LOTS OF MONEY BUT THEY ALSO ENCOURAGE CONSERVATION THEREBY REDUCING US DEPENDENCE ON IMPORTED OIL AND REDUCING AIR POLLUTION AT THE SAME TIME ENERGY TAXES ARE APPEALING BECAUSE THEY CAN SAY WE'RE NOT JUST TRYING TO RAISE YOUR TAXES WE'RE TRYING TO PROTECT YOUR ENVIRONMENT' YOU'VE GOT BETTER COVER SAYS PAUL PORTNEY OF RESOURCES FOR THE FUTURE A WASHINGTON THINK TANK THE SIMPLEST OF ALL ENERGY TAXES TO RAISE WOULD BE THE 141CENTAGALLON FEDERAL GASOLINE TAX A PENNY INCREASE IN THE GASOLINE TAX YIELDS 1 BILLION A YEAR FOR THE TREASURY AND ALL THE COLLECTION MACHINERY IS IN PLACE MR CLINTON HIMSELF HAS SAID HE MIGHT BE WILLING TO CONSIDER A SMALL INCREASE IN THE LEVY ALTHOUGH VICE PRESIDENT ALBERT GORE REMARKED OVER THE WEEKEND THAT A GASOLINETAX INCREASE ISN'T UNDER CONSIDERATION SOME LONGTIME WASHINGTON HANDS SAY MR CLINTON COULD SELL AN INCREASE IN THE GASOLINE TAX BY ARGUING THAT GASOLINE PRICES IN THE US ARE LOWER THAN NEARLY ANY OTHER COUNTRY AND ADJUSTED FOR INFLATION ARE LOWER THAN WHEN HE GOT HIS DRIVER'S LICENSE HIGHER GASOLINE TAXES WOULD ALSO REDUCE AIR POLLUTION RELIANCE ON FOREIGN OIL AND TRAFFIC CONGESTION ALTHOUGH THE CLINTON ECONOMIC TEAM MAY YET END UP WITH HIGHER GASOLINE TAXES AT LEAST SOME OF THE PRESIDENT'S ADVISERS READ THE POLITICS OF RAISING GASOLINE TAXES AS TOO DANGEROUS HIGHER GASOLINE TAXES WOULD BE THE MOST VISIBLE OF ALL ENERGY TAXES AND WOULD RISK VOTERS' WRATH GASOLINE TAXES ARE WIDELY VIEWED IN CONGRESS AS UNFAIR TO THE SOUTH AND WEST WHERE PEOPLE TEND TO DRIVE MORE BUT THE ACTUAL DIFFERENCE IN THE COST TO DRIVERS IN DIFFERENT PARTS OF THE COUNTRY IS OFTEN OVERSTATED IN THE DISTRICT OF COLUMBIA WHERE RESIDENTS USE LESS GASOLINE THAN IN ANY STATE A 20CENT TAX INCREASE WORKS OUT TO 57 PER RESIDENT PER YEAR IN WYOMING WHERE RESIDENTS USE THE MOST GASOLINE IT WOULD COST 134 PER RESIDENT PER YEAR THE DOMESTIC OIL INDUSTRY IS SALIVATING AT THE POSSIBILITY OF A FEE ON OIL IMPORTS EITHER A FIXED CHARGE OF SAY 5 A BARREL OR A VARIABLE CHARGE DESIGNED TO KEEP OIL PRICES FROM FALLING BELOW A CERTAIN PRICE A 350ABARREL TARIFF COULD RAISE 10 BILLION A YEAR BY INCREASING PRICES OF DOMESTICALLY PRODUCED OIL THE FEE WOULD SHORE UP THE AILING US OIL AND GAS INDUSTRY IT ALSO WOULD LESSEN THE NATION'S DEPENDENCE ON FOREIGN OIL BUT THERE ARE FEW SIGNS THAT THE CLINTON ADMINISTRATION IS BITING THE INTERNATIONALTRADE PROBLEMS POSED BY SUCH A TARIFF ARE ALMOST INSURMOUNTABLE PARTICULARLY AT A TIME WHEN THE US IS PRESSING ITS TRADING PARTNERS TO LOWER THEIR TARIFFS CANADA AND MEXICO WOULD ALMOST CERTAINLY BE EXEMPT BECAUSE OF THEIR TRADE AGREEMENTS WITH THE US AND OTHER COUNTRIES WOULD PUSH FOR SPECIAL STATUS TOO SOME MIGHT WANT TO EXEMPT VENEZUELA BECAUSE THEY'RE IN THIS HEMISPHERE SAYS CYRUS TAHMASSEBI CHIEF ECONOMIST AT ASHLAND OIL INC AND ONCE YOU DO THAT WHAT ABOUT SAUDI ARABIA IT'S A TRICKY SITUATION IF GASOLINE TAXES AND OILIMPORT FEES FALL OFF THE TABLE WHAT REMAINS ARE BROADER FORMS OF ENERGY TAXES A TAX ON CARBON A FAVORITE OF ENVIRONMENTALISTS WOULD REDUCE THE CARBON DIOXIDE EMISSIONS LINKED TO GLOBAL WARMING BUT WOULD HIT ESPECIALLY HARD THE POLITICALLY POWERFUL COAL INDUSTRY AND ELECTRIC UTILITIES THE ALTERNATIVE IS TO TAX ALL FORMS OF ENERGY EITHER BY LEVYING A SALES TAX OR BY TAXING THE HEAT CONTENT OF EACH FUEL MEASURED IN BRITISH THERMAL UNITS BUT SOME ENVIRONMENTALISTS AND ECONOMISTS QUESTION SUCH AN APPROACH I DON'T CARE HOW MUCH ENERGY IS USED AS LONG AS WE GET IT FROM CLEAN SOURCES SAYS MR PORTNEY THE RESOURCES FOR THE FUTURE ECONOMIST DESPITE ENERGY SECRETARY HAZEL O'LEARY'S RECENT ASSERTION THAT SUCH BROAD ENERGY TAXES WON'T BE OFFERED THIS YEAR MR CLINTON'S ECONOMIC ADVISERS SAY THEY REMAIN AN OPTION IF THE GOVERNMENT NEEDS THE MONEY ALL THESE ALTERNATIVES MARRY THE CONCERNS OF ENVIRONMENTALISTS WITH THOSE OF DEFICIT HAWKS ANY OF THEM COULD RAISE A LOT OF MONEY THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT A 5 TAX ON THE VALUE OF ENERGY CONSUMPTION WOULD BRING THE GOVERNMENT MORE THAN 15 BILLION A YEAR ANY OF THEM WOULD ENCOURAGE CONSERVATION BY RAISING ENERGY PRICES AND ANY WOULD TO VARYING DEGREES TEND TO REDUCE US RELIANCE ON IMPORTED ENERGY MR GRAETZ THE FORMER TREASURY OFFICIAL SAYS A BROADBASED ENERGY TAX WAS EXAMINED IN DETAIL DURING THE 1990 BUDGET SUMMIT THOUGH IT WAS NEVER ADOPTED THE GOVERNMENT ALREADY COLLECTS TAXES ON COAL AND OIL BUT WOULD HAVE TO SET UP A NEW MECHANISM TO TAX NATURAL GAS AND DECIDE HOW TO HANDLE ELECTRICITY GENERATED FROM HYDROELECTRIC AND NUCLEAR POWER FOR ENERGYINTENSIVE INDUSTRIES SUCH TAXES ARE A NIGHTMARE ANY COMPANY THAT'S ENERGYINTENSIVE WILL TELL YOU THAT IT MAKES US INDUSTRY LESS COMPETITIVE IN THE WORLD SAYS RICHARD STUCKEY CHIEF ECONOMIST AT DU PONT CO THE CHEMICAL GIANT AN EXECUTIVE AT A MAJOR ALUMINUM COMPANY SUGGESTS THAT THE INDUSTRY MIGHT HAVE TO SHUT US FACILITIES IF ENERGY TAXES RAISE COSTS ENOUGH THE PROBLEM WOULD BE ESPECIALLY ACUTE FOR INDUSTRIES WITH FOREIGN COMPETITION CURRENT TRADE LAW PROBABLY WOULDN'T ALLOW THE US TO SUBJECT IMPORTS OF ENERGYINTENSIVE PRODUCTS TO THE LEVY OR REBATE THE TAX ON EXPORTS AMONG THE ALTERNATIVES THE BIGGEST DIFFERENCE IS WHICH ENERGY INDUSTRY GETS HURT MOST CARBON TAXES HIT COAL PARTICULARLY HARD IT HAS MORE CARBON IN IT A TAX ON THE BTU CONTENT OF FUELS WOULD BE KINDER TO COAL THAN THE CARBON TAXES BUT WOULD STILL HIT COAL HARDER THAN GAS AND OIL TAXING THE VALUE OF VARIOUS FORMS OF ENERGY AS A PERCENTAGE OF THE PRODUCER PRICE WOULD TEND TO HIT OIL HARDEST 9301220070 930122 BUSINESS BRIEF AMERICAN PRESIDENT COS NET FELL 13 IN 4TH QUARTER DUE TO ACCOUNTING CHANGE BECAUSE OF A 216 MILLION ACCOUNTING CHANGE AMERICAN PRESIDENT COS SAID ITS FOURTHQUARTER EARNINGS FELL 13 TO 106 MILLION OR 64 CENTS A SHARE FROM 12 MILLION OR 67 CENTS A SHARE A YEAR EARLIER THE OAKLAND CALIF CONTAINER TRANSPORT CONCERN SAID REVENUE IN THE QUARTER WHICH ENDED DEC 25 EDGED UP TO 6693 MILLION FROM 6683 MILLION NET FOR THE YEAR ROSE TO 565 MILLION OR 339 A SHARE FROM 557 MILLION OR 312 A SHARE A YEAR EARLIER REVENUE CLIMBED TO 250 BILLION FROM 245 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN PRESIDENT CLOSED AT 3975 UP 1375 9301220069 930122 BUSINESS BRIEF RASTEROPS CORP CALIFORNIA CONCERN POSTS 15 MILLION QUARTERLY LOSS RASTEROPS CORP HURT BY FLAT SALES AND A PRICE WAR OVER COLOR MONITORS POSTED A LOSS FOR ITS SECOND QUARTER OF 15 MILLION OR 19 CENTS A SHARE AFTER NET INCOME OF 1 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE DROPPED ABOUT 7 TO 25 MILLION IN THE PERIOD ENDED DEC 31 FROM 268 MILLION A YEAR EARLIER THE MAKER OF GRAPHICS ARTS IMAGING PRODUCTS SAID INCLUDING 36 MILLION IN COSTS FOR ITS MERGER WITH TRUEVISION INC THE SANTA CLARA CALIF COMPANY'S SIXMONTH LOSS WAS 59 MILLION OR 73 CENTS A SHARE IT HAD NET INCOME OF 17 MILLION OR 20 CENTS A SHARE A YEAR EARLIER REVENUE DECLINED ABOUT 1 TO 504 MILLION FROM 531 MILLION 9301220068 930122 BUSINESS BRIEF CLOROX CO COMPANY POSTS 11 INCREASE IN FISCAL SECONDPERIOD NET CLOROX CO SAID RECORD HOUSEHOLDPRODUCT SALES BOOSTED FISCAL SECONDQUARTER PROFIT 11 NET INCOME FOR THE PERIOD ENDED DEC 31 ROSE TO 272 MILLION OR 50 CENTS A SHARE FROM 246 MILLION OR 45 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 51 TO 3695 MILLION FROM 3516 MILLION SHIPMENTS OF BLEACH REACHED RECORD LEVELS WITH GROWTH IN FOODS BOTTLED WATER CAT LITTER AND OTHER HOUSEHOLD PRODUCTS IN THE FIRST HALF CLOROX BASED IN OAKLAND CALIF SAID PROFIT ROSE TO 718 MILLION OR 132 A SHARE FROM 485 MILLION OR 89 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER HALF REFLECTED A CHARGE OF 191 MILLION OR 35 CENTS A SHARE DUE TO AN ACCOUNTING CHANGE 9301220067 930122 MCDONNELL NET JUMPS ON GAIN MASKING FLAWS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP POSTED A JUMP IN FOURTHQUARTER PROFIT BECAUSE OF ONETIME GAINS THAT MASKED WEAKNESS IN ITS COMMERCIAL AIRCRAFT BUSINESS AND PROBLEMS IN AN IMPORTANT MILITARYTRANSPORT CONTRACT NET INCOME WAS 762 MILLION OR 1946 A SHARE INCLUDING ACCOUNTING CHANGES RELATED TO RETIREE HEALTH BENEFITS THAT RESULTED IN AN EXTRAORDINARY GAIN FOR THE PERIOD A YEAR EARLIER THE ST LOUISBASED DEFENSE CONTRACTOR AND JETLINER MAKER EARNED 211 MILLION OR 550 A SHARE BUT THE SERIES OF ACCOUNTING CHANGES IN THE LATEST QUARTER ALSO INCLUDED A RETROACTIVE CHARGE OF 153 BILLION IN ITS FIRSTQUARTER 1992 EARNINGS LEADING TO A FULLYEAR LOSS OF 781 MILLION OR 2010 A SHARE THE ADJUSTMENTS CLOUDED RESULTS FOR BOTH THE QUARTER AND YEAR THAT REFLECTED SHARP DROPS IN EARNINGS DUE TO SEVERE SHRINKAGE IN ITS COMMERCIALJET PROGRAMS AND SERIOUS PROBLEMS WITH ITS C17 MILITARYTRANSPORT CONTRACT HOWEVER CHAIRMAN JOHN F MCDONNELL VOWED IN AN INTERVIEW THAT THE WORST IS BEHIND THE NATION'S LARGEST DEFENSE CONTRACTOR AND 1993 WILL BRING DISTINCT IMPROVEMENTS ALREADY MANIFESTED IN MUCH OF ITS GOVERNMENT AEROSPACE WORK MCDONNELL DOUGLAS SHARES ROSE 250 ON THE CHAIRMAN'S UPBEAT REMARKS TO 5650 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY EXCLUDING THE ACCOUNTING CHANGES EARNINGS FOR THE FOURTH QUARTER WERE 86 MILLION OR 220 A SHARE DOWN 59 FROM THE YEAR AGO FOURTHQUARTER SALES DROPPED 12 TO 462 BILLION FROM 468 BILLION A YEAR EARLIER FOR THE YEAR ON THE SAME BASIS THE COMPANY HAD EARNINGS OF 161 MILLION OR 415 A SHARE DOWN NEARLY 64 FROM NET OF 423 MILLION OR 1103 A SHARE A YEAR EARLIER SALES FOR THE YEAR FELL 38 TO 1738 BILLION MR MCDONNELL SAID COMMERCIALJET PROGRAMS HAVE STABILIZED AFTER DRAMATIC COSTCUTTING THAT HAS INCLUDED 22000 LAYOFFS OF MILITARY PROGRAMS HE SAID WITH THE EXCEPTION OF THE C17 THESE PROGRAMS ALL DID VERY WELL IN 1992 AND WE EXPECT THEM TO DO EVEN BETTER IN 1993 AND BEYOND TOP MANAGERS ARE VOWING THIS YEAR WILL SEE PROFITS ON THE C17 WHICH WAS WRACKED WITH LOSSES OF ABOUT 474 MILLION OR 750 A SHARE LAST YEAR AND WILL SEE CORPORATE DEBT FALL TO NO MORE THAN 18 BILLION FROM 276 BILLION HERBERT J LANESE CHIEF FINANCIAL OFFICER ALSO SAID THIS YEAR WILL BRING THE FIRST POSITIVE CASH FLOW FROM THE MD11 AIRLINER WHICH HAS HOBBLED THE COMPANY'S DOUGLAS AIRCRAFT CO SUBSIDIARY FOR THE YEAR THE MD11 SHOWED A NET LOSS OF ONE ORDER WHILE THE SMALLER MD80 AND MD90 JETLINERS SHOWED A GAIN OF 35 ORDERS EXCLUDING THE C17 THE COMPANY'S STRENGTHENING ARRAY OF MILITARY AIRCRAFT PROGRAMSWHICH INCLUDE THE F15 AND F/A18 FIGHTERSSHOWED OPERATING EARNINGS IN THE FOURTH QUARTER OF 115 MILLION AN INCREASE OF 46 OVER THE 79 MILLION EARNED A YEAREARLIER THE COMPANY'S MISSILE SPACE AND ELECTRONICS SEGMENT ALSO ROSE SHARPLY WITH OPERATING EARNINGS CLIMBING 37 TO 230 MILLION FROM 168 MILLION 9301220066 930122 BRITISH AIRWAYS BUYS STAKE IN USAIR DRAWING PROTESTS FROM OTHER CARRIERS BY ROBERT L ROSE AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL BRITISH AIRWAYS PLC BOUGHT A 199 VOTING STAKE IN USAIR GROUP INC FOR 300 MILLION IN A SCALEDDOWN VERSION OF THE TRANSATLANTIC ALLIANCE THE AIRLINE COMPANIES SCRAPPED LAST MONTH BUT TWO BIG US AIRLINES THAT LOBBIED HARD AGAINST THE PREVIOUS AGREEMENT VOWED TO OPPOSE THE NEW ONE SETTING UP A BATTLE OF AIRLINE GIANTS FOR THE CLINTON ADMINISTRATION TO RESOLVE WHILE BRITISH AIRWAY'S VOTING STAKE IN USAIR DOESN'T REQUIRE US GOVERNMENT APPROVAL BECAUSE IT IS BELOW THE LEGAL CAP ON FOREIGN CONTROL TWO OTHER PORTIONS OF THE AGREEMENT ARE SUBJECT TO REVIEW BY THE DEPARTMENT OF TRANSPORTATION THE AGREEMENT CHANGES NOTHING ASSERTED STEPHEN WOLF CHAIRMAN AND CHIEF EXECUTIVE OF UAL CORP AND ITS UNITED AIRLINES UNIT THE AMERICAN AIRLINES UNIT OF AMR CORP ALSO OBJECTED DELTA AIR LINES WHICH JOINED UNITED AND AMERICAN IN OPPOSING THE PREVIOUS TRANSACTION SAID IT WAS STUDYING THE MATTER BY REDUCING THE SIZE OF THE BRITISH INVESTMENT USAIR AND BRITISH AIRWAYS SOUGHT TO AVOID THE CONTROVERSY OVER FOREIGN OWNERSHIP THAT HELPED KILL THEIR PREVIOUS DEAL BRITISH AIRWAYS TRANSFERRED THE 300 MILLION TO USAIR'S PITTSBURGH BANK YESTERDAY MORNING AND USAIR SAID IT WILL USE THE CASH TO PAY DOWN DEBT THE DEAL IS DONE BRITISH AIRWAYS DEPUTY CHAIRMAN AND CHIEF EXECUTIVE SIR COLIN MARSHALL SAID IN AN INTERVIEW AT THE SAME TIME THE PARTNERS SET UP A TWOSTEP STRUCTURE UNDER WHICH BRITISH AIRWAYS COULD INCREASE ITS INVESTMENT OVER THE NEXT FIVE YEARS TO A TOTAL 750 MILLION AND ITS EQUITY OWNERSHIP TO 44 THE SAME LEVELS PROVIDED IN THE AGREEMENT SCRAPPED LAST MONTH USAIR SAID THE ADDED INVESTMENT WOULD COME IF THE US EASES RESTRICTIONS ON FOREIGN OWNERSHIP UNDER US LAW NONUS CITIZENS CAN'T CONTROL MORE THAN 25 OF THE VOTING STOCK OF A US AIRLINE BRITISH AIR'S NEW INVESTMENT ACTUALLY GIVES IT A 246 EQUITY STAKE BUT THE TWO SIDES LIMITED THE VOTING STAKE TO 199 BECAUSE OTHER FOREIGN CITIZENS ALSO OWN USAIR SHARES OUR GOAL IS TO BECOME AN EFFECTIVE AND VIABLE COMPETITOR WITH THE THREE LARGEST US AIRLINES WHO ALREADY CONTROL THE BULK OF AIR SERVICE WITHIN THE US SAID SETH SCHOFIELD CHIEF EXECUTIVE OF OF USAIR GROUP AND ITS USAIR AIRLINE UNIT BUT USAIR'S COMPETITORS SAID THE REDUCED INVESTMENT DOESN'T EASE THEIR CONCERNS UNITED'S MR WOLF SAID THE DEAL SHOULD BE APPROVED ONLY WHEN THE BRITISH GOVERNMENT LIFTS THE BARRIERS TO COMPETITION THAT PRECLUDE FAIR AND EQUAL ACCESS TO AND BEYOND THE UNITED KINGDOM FOR US FLAG CARRIERS FEDERICO PENA THE NEWLY CONFIRMED TRANSPORTATION SECRETARY AND HIS AVIATION ADVISERS ARE EXPECTED TO CLOSELY REVIEW TWO PORTIONS OF THE AGREEMENT SUBJECT TO THE DOT'S APPROVAL IF THERE'S A PROBLEM WE HAVE THE LEVERAGE TO GET IT RESOLVED THE SPOKESMAN SAID ONE PART OF THE AGREEMENT DESIGNED TO FEED USAIR'S DOMESTIC FLIGHTS INTO BRITISH AIR'S INTERNATIONAL FLIGHTS CALLS FOR SHARING THE SAME CODES IN COMPUTER RESERVATIONS SYSTEMS STARTING IN APRIL ANOTHER CALLS FOR BRITISH AIRWAYS TO LEASE THREE JETS AND THEIR CREWS ON FLIGHTS BETWEEN LONDON AND THREE US CITIES PITTSBURGH BALTIMORE AND CHARLOTTE NC AMR CORP CHAIRMAN ROBERT CRANDALL WHO HELPED LEAD THE FIGHT AGAINST THE PREVIOUS BRITISH AIR/USAIR DEAL SAID AMERICAN AIRLINES WILL VIGOROUSLY OPPOSE ANY ATTEMPT TO INTEGRATE THE OPERATIONS OF THE TWO CARRIERS WHETHER BY CODESHARING OR ANY OTHER MEANS EVEN AFTER LAST MONTH'S AGREEMENT WAS KILLED BRITISH AIRWAYS AND USAIR NEVER STOPPED TALKING TO EACH OTHER IN RECENT DAYS THEY PUT FINISHING TOUCHES ON THE NEW DEAL IN NEW YORK AS INAUGURATION FESTIVITIES LEFT THEM WITH NO ROOM AT WASHINGTON DC HOTELS BRITISH AIRWAYS WANTED TO GREATLY EXTEND ITS REACH INTO THE US USAIR BASED IN ARLINGTON VA NEEDED CASH AND GREATER ACCESS TO FOREIGN MARKETS UNDER THE AGREEMENT ANNOUNCED YESTERDAY BRITISH AIRWAYS GETS PREFERRED STOCK THAT PAYS A 7 ANNUAL DIVIDEND AND IS CONVERTIBLE TO USAIR COMMON STOCK AT 1950 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY USAIR SHARES FELL 50 CENTS TO 15375 BRITISH AIRWAYS ALSO GETS THREE OF 16 SEATS ON USAIR'S BOARD DOWN FROM FOUR SEATS UNDER THE PREVIOUS ARRANGEMENT THE TWO SIDES ALSO DROPPED A CONTROVERSIAL PROVISION OF THEIR PREVIOUS AGREEMENT THAT GAVE THE BRITISH AIRLINE EFFECTIVE VETO POWER OVER KEY DECISIONS OF USAIR'S BOARD UNDER THE FIRST OF TWO OPTIONS BRITISH AIRWAYS HAS THREE YEARS TO INVEST 200 MILLION IN USAIR PREFERRED STOCK CONVERTIBLE AT 2050 A SHARE THE SECOND OPTION GOOD FOR FIVE YEARS WOULD INVOLVE ANOTHER 250 MILLION YESTERDAY'S 300 MILLION INFLOW GIVES USAIR MORE BREATHING ROOM AS IT SEEKS TO EMERGE FROM FOUR YEARS OF STEEP LOSSES THAT HAS LOADED ITS BALANCE SHEET WITH DEBT IF THERE ARE ANY CONCERNS ABOUT OUR VIABILITY THIS WILL PUT THOSE TO REST SAID FRANK SALIZZONI USAIR'S CHIEF FINANCIAL OFFICER WHO HELPED NEGOTIATE THE AGREEMENT AT THE SAME TIME HE SAID THE AIRLINE HAS A LONG WAY TO GO IN SHORING UP ITS BALANCE SHEET SEPARATELY BRITISH AIRWAYS SAID IT IS APPOINTING A FOURMEMBER COMMITTEE OF BOARD MEMBERS TO DRAFT A CODE OF CONDUCT AIMED AT PREVENTING ANOTHER DIRTY TRICKS CAMPAIGN SUCH AS THE ONE WAGED AGAINST VIRGIN ATLANTIC AIRWAYS THAT CAMPAIGN IS ALLEGED TO HAVE INCLUDED POACHING VIRGIN CUSTOMERS AND BREAKING INTO VIRGIN'S COMPUTER SYSTEM TO GAIN CUSTOMER RECORDS BRUCE INGERSOLL IN WASHINGTON AND BRIDGET O'BRIAN IN HOUSTON CONTRIBUTED TO THIS ARTICLE 9301220065 930122 COMMODITIES PRICES OF ORANGE FUTURES SLIDE AMID CONCERN OF MILD WEATHER IN FLORIDA AND BUMPER CROPS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONTINUED MILD WEATHER IN FLORIDA AND GROWING CONCERN ABOUT US AND BRAZILIAN BUMPER CROPS SENT ORANGE JUICE FUTURES PRICES SHARPLY LOWER ON THE NEW YORK COTTON EXCHANGE THE ACTIVELY TRADED MARCH CONTRACT SLUMPED 290 CENTS TO CLOSE AT 8150 CENTS A POUND AND ANALYSTS SAID THEY EXPECT FURTHER SLIDES TOWARD LIFEOFCONTRACT LOWS OF 79 CENTS A POUND AND BELOW THE WHOLE SITUATION IN ORANGE JUICE IS VERY BEARISH RIGHT NOW SAID SANDRA KAUL A SENIOR COMMODITIES ANALYST WITH SHEARSON LEHMAN BROTHERS IT'S VERY LIKELY THAT THE MARKET WILL CONTINUE FALLING TO THE 70CENT LEVEL OR LOWER SPECULATORS STILL HOLD HUGE LONG POSITIONS THE PRICE SELLOFF COULD BE QUITE DRAMATIC A LONG POSITION IN COMMODITIES TRADING IS A BET THAT PRICES WILL RISE ANALYSTS NOTED THAT THE CHANCES FOR A WINTER FREEZE GRIPPING THE FLORIDA CITRUS HARVEST WERE RAPIDLY FADING A DAMAGING FREEZE IS STRONGLY BULLISH FOR ORANGE JUICE FUTURES PRICES PARTICULARLY IN PEAK DEMAND PERIODS DURING THE WINTER GOOD SELLING PRESSURE DEVELOPED ON THE REALIZATION THAT THERE IS LITTLE THREAT OF A FROST THROUGH THE REMAINDER OF JANUARY SAID STEVE PLATT A SENIOR ANALYST WITH DEAN WITTER IN CHICAGO I'M GENERALLY BEARISH THE CASH MARKET CONTINUES TO REMAIN WEAK AS A RESULT OF THE BUMPER CROP IN FLORIDA AND THE LARGE BRAZILIAN CROP HE ADDED RIGHT NOW PROSPECTS FOR A DAMAGING FREEZE FOR FLORIDA CITRUS ARE HIGHLY UNLIKELY CONCURRED BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER THIS IS PROBABLY THE LAST WEEK YOU COULD HAVE THE POSSIBILITY OF A SIGNIFICANT FREEZE HE SAID THE SOCALLED EL NINO WEATHER PATTERN HAS PROBABLY SPARED FLORIDA FROM THE DAMAGING EFFECTS OF STORMS BATTERING THE MIDWEST MR SAVAIKO SAID BUT HE ADDED THAT THE EL NINO COULD BRING HEAVY RAINS TO THE REGION IN THE SPRING THERE'S CLEARLY THE POSSIBILITY THAT THE CONTRACT LOW OF 79 CENTS WHICH WE SAW LAST WEDNESDAY MAY BE TESTED IN THE DAYS AHEAD MR SAVAIKO PREDICTED MS KAUL THE SHEARSON LEHMAN ANALYST DOESN'T SEE MUCH PRICE SUPPORT EMERGING FROM THE DEMAND SIDE OF THE EQUATION DEMAND IS RUNNING ON PAR WITH LAST SEASON EVEN THOUGH PRICES ARE NEARLY HALF THOSE OF LAST SEASON MR SAVAIKO ON THE OTHER HAND SAYS THE MARKET MAY BE DUE FOR A CORRECTION IN PART BECAUSE EXPECTATIONS OF LARGE FLORIDIAN AND BRAZILIAN CROP HARVESTS HAVE LARGELY BEEN DISCOUNTED SINCE LATE IN THE FOURTH QUARTER AND BECAUSE RETAILERS ARE NOW AGGRESSIVELY PUSHING ORANGE JUICE AS A BEVERAGE MANY SUPERMARKET CHAINS ARE AGGRESSIVELY FEATURING ORANGE JUICE SUCH THAT THE DEMAND SIDE OF THE EQUATION COULD PROVIDE SOME SUPPORT HE SAID IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS FUTURES PRICES GAVE UP MOST OF THEIR WEDNESDAY GAINS AND AGAIN SHRUGGED OFF NEWS OF USLED MILITARY ACTION AGAINST IRAQ GOLD FOR FEBRUARY DELIVERY MOVED 50 CENTS LOWER TO CLOSE AT 32930 ON THE NEW YORK COMMODITY EXCHANGE SILVER FOR MARCH DELIVERY FINISHED 15 CENTS LOWER AT 3723 AN OUNCE PLATINUM WHICH POSTED A 620 GAIN TO 36360 AN OUNCE WEDNESDAY ON REPORTS OF TIGHTENING SUPPLIES FINISHED 190 LOWER AT 36170 AN OUNCE FOR THE ACTIVELY TRADED APRIL CONTRACT PALLADIUM FOR MARCH DELIVERY LOST 105 TO CLOSE AT 10665 AN OUNCE TRADERS SAID A SCHEDULED MEETING BETWEEN JAPANESE BUYERS OF PLATINUM AND PALLADIUM AND RUSSIAN SUPPLIERS WAS APPARENTLY POSTPONED LEAVING THE MARKET TROUBLED BY RUMORS OF SEVERE TIGHTENING OF NICKEL SUPPLIES FROM THE COMMONWEALTH OF INDEPENDENT STATES PLATINUM AND PALLADIUM ARE BYPRODUCTS OF NICKEL ENERGY PETROLEUM PRICES RALLIED ON REPORTS OF YET ANOTHER MILITARY INCIDENT INVOLVING THE US AND IRAQ PRICES BEGAN ADVANCING ON WORD FROM THE PENTAGON THAT A US PLANE HAD FIRED A MISSILE AT AN IRAQI AIR DEFENSE RADAR SITE AFTER THE INSTALLATION HAD LOCKED ITS RADAR ON THE AIRCRAFT ALTHOUGH IRAQ SAID ITS CEASEFIRE REMAINS IN EFFECT FUTURES PRICES SURGED IN BOTH LONDON AND NEW YORK LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY JUMPED 31 CENTS TO SETTLE AT 1881 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE SOME US REFINERS RAISED THEIR FIELD POSTINGS FOR WEST TEXAS INTERMEDIATE THE BENCHMARK CRUDE BY 50 CENTS A BARREL IN ADDITION TO THE IRAQI DEVELOPMENT SOME STORM DISRUPTIONS TO LOADINGS AT NORTH SEA OIL FIELDS HELPED TO SUPPORT HIGHER PRICES ALSO TRADERS SAID SOME BUYING APPEARED TO BE TECHNICALLY DRIVEN AFTER THIS WEEK'S SELLOFF GRAINS & SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS SETTLED LOWER AS CONCERN EASED ABOUT QUALITY PROBLEMS IN THE WHEAT CROPS IN AUSTRALIA AND ARGENTINA WHEAT PRICES CLIMBED IN RECENT WEEKS ON SPECULATION THAT RAINDELAYED WHEAT HARVESTS WOULD REDUCE THE SUPPLY OF HIGHQUALITY WHEAT AVAILABLE FOR THE WORLD'S MILLERS SOME TRADERS SAID MORE WHEAT THAN WAS EXPECTED IN AUSTRALIA IS OF GOOD QUALITY WHAT'S MORE THE WINTER WHEAT CROP IN THE US APPEARS TO BE IN GOOD SHAPE AN AMPLE COVER OF SNOW ACROSS MUCH OF THE MIDWEST IS PROTECTING THE DORMANT CROP FROM COLD TEMPERATURES SOYBEAN PRICES WERE DEPRESSED IN PART BY ANTICIPATION OF THE BRAZILIAN HARVEST BRAZILIAN FARMERS TRADITIONALLY SELL ABOUT 40 OF THEIR CROP DURING THE HARVEST WHICH HITS STRIDE IN MIDFEBRUARY 9301220064 930122 HEARD ON THE STREET PARAMOUNT'S 3 1/2POINT STOCK JUMP SPOTLIGHTS BRIGHTER OUTLOOK INVESTORS AND ANALYSTS SAY BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL FOR MOST OF THE PAST THREE YEARS THE ENTERTAINMENT AND PUBLISHING GIANT PARAMOUNT COMMUNICATIONS HASN'T PLAYED WELL ON WALL STREET SO WHY DID THE STOCK LEAP 3 1/2 YESTERDAY TO 46 1/8 BENEATH PARAMOUNT STOCK'S LONGTERM WOES IS WHAT ITS FANS SEE AS A TANTALIZING CASE FOR BULLISHNESS PARAMOUNT IS ONE OF THE BEST WAYS TO PLAY THE GROWING DEMAND FOR SOFTWARE IN THE MEDIA AND COMMUNICATIONS BUSINESSES THE ARGUMENT GOES AND THE COMPANY IS FAT WITH TROPHY ASSETS WAITING TO BE MANAGED BETTER ITS 12 BILLION IN CASH AND RELATIVELY LOW DEBT MAKE IT A STELLAR CANDIDATE TO BE ACQUIRED OR TO MOUNT A TAKEOVER OF ITS OWN AND AFTER A STRING OF BOXOFFICE DISAPPOINTMENTS PARAMOUNT'S MOVIE STUDIO MIGHT REBOUND LATER THIS YEAR SUDDENLY INVESTORS APPEAR TO BE BUYING INTO THIS MORE UPBEAT SCRIPT YESTERDAY'S SURGE IN THE STOCK FOLLOWS A RECENT SPATE OF ANALYST PROJECTIONS OF A PROFIT REBOUND IN THE SECOND HALF MOREOVER THE WALL STREET RUMOR MILL IS SERVING UP A FRESH ROUND OF SPECULATION ABOUT A POSSIBLE MEGATRANSACTION PARAMOUNT STOCK ISN'T FOR THE FAINT OF HEART SOME ANALYSTS EXPECT THE COMPANY TO POST AN OUTRIGHT LOSS FOR THE FISCAL FIRST QUARTER ENDING THIS MONTH CAUSED BY STINGING WRITEOFFS FOR ITS LONE CHRISTMAS MOVIE LEAP OF FAITH AND BY PARAMOUNT'S DECISION TO PULL THE PLUG ON UNPROMISING FILMS IN DEVELOPMENT THE STREET WON'T SOON FORGET 1991 AND 1992 WHEN INSTABILITY REIGNED AT PARAMOUNT PICTURES STUDIO HEAD FRANK MANCUSO WAS FIRED AND HIS SUCCESSOR BRANDON TARTIKOFF LASTED ONLY 15 MONTHS MANY MOVIES WERE ALSORANS WRITEOFFS FORESTALLED EARNINGS MOMENTUM PARAMOUNT SHARES PEAKED AT ABOUT 66 IN 1989 WHEN THE STREET THOUGHT THE COMPANY WAS A TAKEOVER CANDIDATE RIVAL ENTERTAINMENT STOCKS HAVE DONE BETTER WITH NEWS CORP SOARING AFTER IT OVERCAME NEARCOLLAPSE AND WALT DISNEY RISING DESPITE TROUBLES IN ITS EUROPEAN THEME PARK INVESTMENT EVEN THE LONGMORIBUND SHARES OF DEBTLADEN TIME WARNER HAVE PERKED UP LATELY TO 32 3/8 FROM A YEARLY LOW BELOW 22 PARAMOUNT IS TRADING WELL BELOW THE 73ASHARE VALUE THAT ANALYSTS PUT ON ITS ASSETS BUT ANALYSTS THINK AN UPTURN IN SEVERAL BUSINESS LINES COULD PUMP NEW LIFE INTO THE SHARES ANALYSTS AT MORGAN STANLEY FIRST BOSTON AND SEIDLER AMDEC SECURITIES RECENTLY REAFFIRMED BUY RECOMMENDATIONS ON THE STOCK CITING IN PART AN EXPECTED RECOVERY AT THE STUDIO WE BELIEVE PARAMOUNT IS WELL POSITIONED TO SHOW EXCELLENT EARNINGS GROWTH IN THE SECOND HALF OF FISCAL 1993 AND BEYOND WRITES FIRST BOSTON'S MARTIN ROMM MORGAN STANLEY'S ALAN KASSAN SAYS PROFIT IN THE FISCAL YEAR ENDING OCT 31 SHOULD GET A BOOST FROM A STRONG PRODUCT CYCLE IN THE FILM BUSINESS PARAMOUNT'S STRENGTH IN THE FIRSTRUN SYNDICATION BUSINESS AND PROSPECTS FOR IMPROVING MARKET CONDITIONS IN TEXTBOOKS ALTHOUGH TRIPPED UP BY MR TARTIKOFF'S SUDDEN EXIT IN OCTOBER THE STUDIO NOW BOASTS A RELEASE SCHEDULE THAT INCLUDES SUCH POTENTIAL HITS AS SLIVER STARRING SHARON STONE AND TOM CRUISE IN THE FIRM BASED ON THE BESTSELLER ABOUT A MOBCONNECTED LAW FIRM CONEHEADS A SATURDAY NIGHT LIVE SPINOFF WILL BE SEEKING THE BLOCKBUSTER STATUS ACHIEVED BY WAYNE'S WORLD SEQUELS TO WAYNE'S WORLD AND THE ADDAMS FAMILY ARE ALSO IN THE PIPELINE ALTHOUGH THE PRODUCTION OF BEVERLY HILLS COP III HAS BEEN DELAYED THE EDDIE MURPHY SEQUEL IS STILL ON THE LINEUP THE STOCK ALSO MAY GET A BOOST FROM PARAMOUNT'S HIGHLY PROFITABLE POSITION IN TELEVISION PROGRAMMING CREATED FOR FIRSTRUN SYNDICATION STAR TREK DEEP SPACE NINE A ONEHOUR SPINOFF OF STAR TREK THE NEXT GENERATION DREW LOFTY RATINGS IN ITS RECENT DEBUT ANALYSTS SAY THE NEW SHOW AND A SECONDSEASON RETURNEE THE UNTOUCHABLES COULD SHOW COMBINED PROFIT OF 25 MILLION TO 30 MILLION WITH THE ECONOMY IMPROVING ANALYSTS ALSO SEE A BRIGHTER OUTLOOK FOR THE SIMON & SCHUSTER BOOK PUBLISHING UNIT WHERE FISCAL 1992 OPERATING PROFIT WAS 182 MILLION ON 16 BILLION IN REVENUE A MAJOR TEXTBOOK PUBLISHER PARAMOUNT ALSO STANDS TO BENEFIT IF THE NEW ADMINISTRATION FOLLOWS THROUGH ON CAMPAIGN PLEDGES TO SPEND MORE ON EDUCATION A 1989 ACQUISITION COMPUTER CURRICULUM CORP PRODUCES COMPUTERBASED LEARNING PROGRAMS A MAJOR TRANSACTION IS ALSO POSSIBLE SOME INVESTORS BELIEVE MARTIN S DAVIS PARAMOUNT CHAIRMAN HAS REPEATEDLY INDICATED THAT THE COMPANY IS INTERESTED IN MAKING A MAJOR ACQUISTION THOUGH HIS BOLDEST EFFORT A 200ASHARE BID FOR TIME INC WAS THWARTED BY THE MERGER OF TIME AND WARNER COMMUNICATIONS WITH SUCH ASSETS AS ITS HOLLYWOOD STUDIO PARAMOUNT PERIODICALLY SPARKS CORPORATE MARRIAGE RUMORS RECENTLY FOR EXAMPLE WALL STREET HAS BUZZED WITH SPECULATION OF A PENDING NEXUS WITH VIACOM INC A DEAL THAT PARAMOUNT HAS IN FACT EXPLORED IN THE PAST THERE HAS ALSO BEEN CONTINUING SPECULATION THAT PARAMOUNT MIGHT BUY GENERAL ELECTRIC CO'S NBC UNIT OR THAT THERE MAY BE A LINKUP BETWEEN CAPITAL CITIES/ABC INC AND PARAMOUNT A DEAL WITH A NETWORK HOWEVER IS UNLIKELY UNTIL THE FEDERAL COMMUNICATIONS COMMISSION REMOVES RULES THAT PROHIBIT A NETWORK FROM OWNING A STUDIO 9301220063 930122 SEC SUIT CHARGES WOLF FINANCIAL UNIT AND HIBBARD BROWN WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION CHARGED FN WOLF & CO A UNIT OF WOLF FINANCIAL GROUP INC AND HIBBARD BROWN & CO A NEW YORK PENNYSTOCK FIRM WITH USING MISLEADING SALES TACTICS TO PROMOTE SHARES OF TREATS INTERNATIONAL INC IN A SUIT FILED IN FEDERAL COURT IN MANHATTAN THE SEC ALLEGED THAT FN WOLF AND HIBBARD BROWN USED HIGHPRESSURE SALES GIMMICKS TO PROMOTE THE STOCK OF THE CANADIAN BAKERY FRANCHISER THE AGENCY ALLEGED THAT THE FIRMS MISSTATED THE COMPANY'S PROFIT AND EXPANSION PLANS AND FAILED TO TELL INVESTORS THAT THE SEC SUSPENDED TRADING IN TREATS SECURITIES FOR 10 DAYS LAST SPRING THE SEC ALSO ALLEGED THAT THE FIRMS DIDN'T TELL INVESTORS THAT A LARGE NUMBER OF TREATS COMMON SHARES AND STOCK WARRANTS WERE HELD BY ROBERT BRENNAN SR FOUNDER OF DEFUNCT FIRST JERSEY SECURITIES INC MR BRENNAN FN WOLF AND HIBBARD BROWN HAVE BEEN NAMED IN SEVERAL PRIVATE SUITS ALLEGING SECURITIESLAW VIOLATIONS IN CONNECTION WITH SEVERAL STOCK OFFERINGS THE SEC SAID MANAGEMENT OF BOTH FIRMS KNEW THEIR EMPLOYEES WERE USING MISLEADING SALES SCRIPTS AND RESEARCH REPORTS TO TRY TO SELL TREATS STOCK OFFICIALS AT FN WOLF DIDN'T RETURN PHONE CALLS SEEKING COMMENT STEVEN CARUSO GENERAL COUNSEL FOR HIBBARD BROWN SAID THE FIRM DENIES THE ALLEGATIONS AND WILL VIGOROUSLY DEFEND ITSELF 9301220062 930122 SENATE SUPPORT FOR ZOE BAIRD IS PRECARIOUS ACTION FROM WHITE HOUSE IS SEEN AS ONLY CHANCE FOR NOMINEE'S APPROVAL BY PAUL M BARRETT AND DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NOMINATION OF ZOE BAIRD TO BE ATTORNEY GENERAL FELL INTO PERIL AS OPPOSITION AMONG WOMEN AND DEMOCRATS IN THE SENATE MOUNTED AND THE WHITE HOUSE OFFERED HER ONLY TEPID SUPPORT MS BAIRD YESTERDAY REJECTED THE URGING OF SOME SENATE DEMOCRATS THAT SHE SAVE PRESIDENT CLINTON FURTHER EMBARRASSMENT BY STEPPING ASIDE FOR HAVING KNOWINGLY HIRED TWO ILLEGAL ALIENS AS HOUSEHOLD SERVANTS IN 1990 WHILE MS BAIRD FACED A SECOND DAY OF QUESTIONING ABOUT HER VIOLATION OF IMMIGRATION AND TAX LAW THE PRESIDENT'S SPOKESMAN REAFFIRMED MR CLINTON'S SUPPORT FOR THE FIRST WOMAN EVER NOMINATED TO BE THE NATION'S TOP LAW ENFORCEMENT OFFICER THE PRESIDENT CONTINUES TO THINK SHE'D MAKE A GOOD ATTORNEY GENERAL SPOKESMAN GEORGE STEPHANOPOULOS SAID RIGHT NOW ZOE BAIRD IS HIS NOMINEE IN HIS FIRST BRIEFING AT THE WHITE HOUSE MR STEPHANOPOULOS ADDED HEAR HER OUT GIVE HER A CHANCE TO ANSWER THAT'S WHAT HEARINGS ARE FOR DESPITE THOSE STATEMENTS SENATE STAFF MEMBERS AND CLINTON TRANSITION OFFICIALS WORKING ON THE BAIRD NOMINATION ACKNOWLEDGED THAT WITHOUT STRONG LOBBYING BY THE PRESIDENT HIMSELF MS BAIRD'S NOMINATION WOULD FAIL SENATORS SAID THEY WERE BEING BARRAGED WITH TELEPHONE CALLS CRITICIZING THE BAIRD NOMINATION AND THAT SOME OFFICES WERE SO SWAMPED THAT AIDES HAD TROUBLE FINDING OPEN LINES TO MAKE OUTGOING CALLS JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL SAID THE HEARINGS WILL CONTINUE TODAY WITH TESTIMONY FROM MS BAIRD'S HUSBAND PAUL GEWIRTZ A LAW PROFESSOR AT YALE UNIVERSITY MS BAIRD REITERATED YESTERDAY THAT WHILE SHE ACCEPTED BLAME FOR ILLEGALLY EMPLOYING THE TWO ALIEN WORKERS IT WAS HER HUSBAND WHO HANDLED THE HIRING AND SOUGHT LEGAL ADVICE ABOUT THE MATTER SENATE DEMOCRATS RESEMBLED A NERVOUS HERD AND THE ADMINISTRATION APPEARED TO BE ASSESSING ITS OPTIONS RATHER THAN RUSHING TO A CONFRONTATION THAT COULD COST THE NEW PRESIDENT PRECIOUS POLITICAL CAPITAL DEMOCRATS ARE CONSCIOUS TOO THAT THEY RISK APPEARING WEAK GOING INTO A SESSION WHEN THEY HAVE PLEDGED TO TACKLE FAR MORE CONTROVERSIAL LEGISLATIVE ISSUES NO QUESTION IT'S A DIFFICULT NOMINATION SAID NEBRASKA SEN BOB KERREY BUT IF WE'RE GOING TO CUT AND RUN WHEN WE GET A COUPLE OF HUNDRED PHONE CALLS WE'RE NEVER GOING TO GET ANYTHING DONE ON THE TOUGH ISSUES OF HEALTH CARE AND THE DEFICIT MAJORITY LEADER GEORGE MITCHELL OF MAINE STEADIED SOME NERVES AT A PARTY CAUCUS YESTERDAY BUT MS BAIRD APPEARED TO BE ISOLATED WITHOUT A CLEAR CONSTITUENCY OTHER THAN HER CLOSEST SUPPORTERS FROM CONNECTICUT AND THE TENTATIVE WHITE HOUSE WOMEN ARE DIVIDED OVER HER NOMINATION MAKING IT EASIER FOR MALE SENATORS TO DEFECT AND UNLIKE COMMERCE SECRETARY RON BROWN WHO HELPED RAISE MONEY FOR MANY DEMOCRATS OVER THE YEARS SHE HAS NO POWERFUL ALLIES REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS CIRCULATED A STATEMENT YESTERDAY MORNING OPPOSING MS BAIRD'S CONFIRMATION WHILE DEMOCRATIC SENS BARBARA MIKULSKI OF MARYLAND AND DIANNE FEINSTEIN OF CALIFORNIA BOTH EXPRESSED RESERVATIONS ABOUT THE NOMINATION IN THE CAUCUS BY LATE YESTERDAY THREE DEMOCRATS BENNETT JOHNSTON OF LOUISIANA DAVID BOREN OF OKLAHOMA AND RICHARD SHELBY OF ALABAMA URGED MS BAIRD TO WITHDRAW FOUR REPUBLICANS IN ADDITION TO SEN KASSEBAUM SAID THEY WOULD VOTE AGAINST HER ARIZONA SEN DENNIS DECONCINI SAID THERE ARE AT LEAST SEVERAL COMMITTEE DEMOCRATS WHO ARE NOT COMMITTED FOR HER INCLUDING ME HE DESCRIBED MS BAIRD'S CHANCES AS LITTLE BETTER THAN 5050 AND PROBABLY GOING DOWN BORDER STATES LIKE HIS OWN ARE MOST SENSITIVE TO THE IMMIGRATION ISSUE BUT IN THE MIDWEST THE CASE IS INTERWOVEN WITH CONCERN ABOUT LOST JOBS AT HOME AND RESENTMENT OF LAWBREAKING BY THE WEALTHY MY READ IS BAIRD WILL PROBABLY WITHDRAW SAID REPUBLICAN SEN CHARLES GRASSLEY WHO CITED THE 73 UNEMPLOYMENT RATE IN HIS HOME STATE OF IOWA EVEN MODERATE REPUBLICANS ARE COOL TO MS BAIRD IT'S TOUGH GOING SAID GOP SEN JOHN CHAFEE OF RHODE ISLAND I DON'T THINK SHE'S GOING TO MAKE IT THE REPUBLICANS IN ADDITION TO SEN KASSEBAUM WHO ANNOUNCED THEIR OPPOSITION YESTERDAY WERE JUDICIARY COMMITTEE MEMBERS ALAN SIMPSON OF WYOMING AND LARRY PRESSLER OF SOUTH DAKOTA AS WELL AS LARRY CRAIG OF IDAHO SLADE GORTON OF WASHINGTON UTAH SEN ORRIN HATCH THE COMMITTEE'S RANKING REPUBLICAN SAID THAT ALTHOUGH CALLS TO HIS OFFICE HAVE BEEN HEAVILY AGAINST MS BAIRD HE WILL CONTINUE TO SUPPORT HER BECAUSE SHE HAD APOLOGIZED FOR HER WRONGDOING AND OTHERWISE HAD AN IMPRESSIVE PROFESSIONAL BACKGROUND MS BAIRD GENERAL COUNSEL OF AETNA LIFE & CASUALTY CO IN 1990 HIRED AN UNDOCUMENTED PERUVIAN WOMAN TO SERVE AS BABYSITTER FOR HER SON AND THE WOMAN'S HUSBAND TO SERVE AS HER PARTTIME DRIVER MS BAIRD REITERATED YESTERDAY THAT SHE AND HER HUSBAND HAD BEEN UNABLE TO FIND US CITIZENS OR LEGAL IMMIGRANTS TO WORK IN THEIR HOME IN NEW HAVEN CONN MS BAIRD HAS ACKNOWLEDGED THAT SHE FAILED TO PAY SOCIAL SECURITY WITHHOLDING TAXES FOR THE COUPLE AND WAITED FOR A YEAR BEFORE REPORTING THEIR EMPLOYMENT TO THE LABOR DEPARTMENT AFTER VOLUNTARILY DISCLOSING THE ARRANGEMENT TO CLINTON TRANSITION OFFICIALS MS BAIRD AND HER HUSBAND PAID 12000 IN BACK TAXES INTEREST AND PENALTIES AS WELL AS A 2900 CIVIL FINE TO THE IMMIGRATION AND NATURALIZATION SERVICE AS ATTORNEY GENERAL MS BAIRD WOULD SUPERVISE THE INS WHICH IS AN ARM OF THE JUSTICE DEPARTMENT 9301220061 930122 SCIENCE SCIENCE POSTS POSE A PUZZLE FOR PRESIDENT BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FACES TRICKY CHOICES IN FILLING THE TOP JOBS AT THREE PROMINENT SCIENCERELATED AGENCIES WHERE HOLDOVERS WITH SOME POLITICAL APPEAL ALL WANT TO KEEP THEIR POSTS AMONG THE MOST IMPORTANT APPOINTMENTS MR CLINTON HAS YET TO MAKE ARE HIGHPROFILE POSITIONS AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE FOOD AND DRUG ADMINISTRATION AND THE NATIONAL INSTITUTES OF HEALTH AT NASA UNCERTAINTY ABOUT WHO WILL BE IN CHARGE HAS RESULTED IN CONFUSION AND THE TEMPORARY SHELVING OF REORGANIZATION PLANS FOR THE SPACE STATION PROJECT THAT WERE RECENTLY ANNOUNCED BY AGENCY ADMINISTRATOR DANIEL GOLDIN BUSH APPOINTEE MR GOLDIN WHO LEFT TRW INC LAST SPRING TO JOIN NASA HASN'T BEEN ASKED EITHER TO STAY OR TO GO MEANWHILE BERNADINE HEALY OF NIH HAS BEEN ASKED BY THE CLINTON TEAM TO STAY ON AT LEAST TEMPORARILY AND DAVID KESSLER AT THE FDA IS STILL IN HIS POST AFTER THE BUSH ADMINISTRATION REFUSED TO ACCEPT HIS PRO FORMA RESIGNATION LETTER THERE'S STILL UNCERTAINTY ABOUT PERMANENT APPOINTMENTS AT BOTH AGENCIES UNLIKE CABINET POSTS IT ISN'T AUTOMATICALLY ASSUMED THAT HIGHLY SPECIALIZED JOBS SUCH AS THESE WOULD CHANGE HANDS WITH A NEW PRESIDENT EXPERTISE IS OFTEN VALUED MORE THAN POLITICS IN MAKING THESE APPOINTMENTS MR CLINTON PROBABLY WITH HEAVY INPUT FROM VICE PRESIDENT ALBERT GORE FACES A TOUGH CHOICE AS TO WHETHER TO PLUCK MR GOLDIN FROM HIS JOB JUST AS HE IS SHAKING UP THE STODGY SPACE AGENCY AND FORCING MORE REALISM IN ITS BUDGET CALCULATIONS MUCH OF MR GOLDIN'S POSTCOLD WAR VISION FOR NASA ECHOES THEMES FROM THE CLINTONGORE CAMPAIGN WHICH STRESSED FASTER GREATER COMMERCIALIZATION OF SCIENTIFIC AND TECHNOLOGICAL DISCOVERIES BESIDES COMING FROM INDUSTRY HIMSELF WHICH SHOULD BE ANOTHER PLUS WITH THE CLINTON CAMP MR GOLDIN HAS WON ALLIES IN THE AEROSPACE AND DEFENSE INDUSTRIES BY SEEKING THEIR ADVICE ON NASA'S ROLE AND PRACTICES THE GENERAL FEELING IS HE NEEDS TO BE GIVEN A CHANCE TO FINISH SOME OF THE OBJECTIVES HE STARTED SAID DON FUQUA PRESIDENT OF THE AEROSPACE INDUSTRIES ASSOCIATION WHICH REPRESENTS AEROSPACE MANUFACTURING INTERESTS GENERALLY INDUSTRY IS PLEASED WITH HIM BUT MR GOLDIN'S HARDCHARGING STYLE AND FASTER BETTER CHEAPER CAMPAIGN TO CONTROL NASA'S CHRONIC COST OVERRUNS HAVE GIVEN RISE TO HOSTILITY WITHIN THE SPACE AGENCY AND RESISTANCE TO SOME OF HIS REFORMS AND MANAGEMENT IDEAS POLITICALLY HIS REAPPOINTMENT CHANCES ALSO COULD BE HURT BECAUSE HE REFUSED TO LET MR GORE MAKE A CAMPAIGN SPEECH AT ONE OF NASA'S CENTERS MIFFING SOME CAMPAIGN WORKERS A NASA SPOKESMAN THOUGH SAID MR GOLDIN SIMPLY TURNED OVER MR GORE'S REQUEST TO AGENCY LEGAL COUNSEL WHO CONCLUDED THAT NASA REGULATIONS PROHIBIT PARTISAN POLITICAL EVENTS ON NASA PROPERTY BOTH DR HEALY AT NIH AND DR KESSLER AT THE FDA WHO EACH GAINED UNUSUALLY HIGH PUBLIC PROFILES WITH THEIR WORK IN THE BUSH ADMINISTRATION ALSO PRESENT DIFFICULT CHOICES REAPPOINTING DR HEALY AS DIRECTOR WOULD GIVE THE CLINTON ADMINISTRATION ANOTHER WOMAN IN A HIGHRANKING POST MOREOVER ONE OF HER TOP PRIORITIES STRENGTHENING RESEARCH ON WOMEN'S HEALTH IS SOMETHING MR CLINTON SPOKE OF OFTEN DURING THE CAMPAIGN THE NIH DIRECTORSHIP ALSO HASN'T ALWAYS CHANGED WITH ADMINISTRATIONS DONALD FREDRICKSON A FORD APPOINTEE FOR EXAMPLE KEPT THE JOB THROUGH THE CARTER ADMINISTRATION AND INTO THE FIRST SIX MONTHS OF THE REAGAN TERM DR HEALY HAS HELD THE JOB ONLY SINCE APRIL 1991 BEFORE THAT IT STOOD EMPTY FOR NEARLY TWO YEARS WHILE DR HEALY PERSONALLY OPPOSED THE CONTROVERSIAL BAN ON FEDERAL FINANCING OF RESEARCH USING FETAL TISSUE SHE LOYALLY SUPPORTED THE BUSH ADMINISTRATION'S STAND IN HER ROLE AS NIH DIRECTOR MR CLINTON HAS SAID HE WILL LIFT THE BAN THAT WAS PUT IN PLACE UNDER THE REAGAN ADMINISTRATION IN ADDITION MANY AIDS GROUPS ARGUE THAT SHE HASN'T GIVEN THE DISEASE A HIGHENOUGH PRIORITY AND WANT HER REMOVED AT THE FDA MR KESSLER'S REAPPOINTMENT WOULD BE WELCOMED BY MANY ACTIVIST GROUPS THAT FAVOR TOUGHER REGULATION OF THE FOOD AND DRUG INDUSTRIES HE HAS ATTACKED EXCESSIVE CLAIMS BY THOSE MANUFACTURERS AND HELPED PUSH THROUGH THE SWEEPING NUTRITIONLABELING RULES IN ADDITION HE HAS CRACKED DOWN ON DRUG ADVERTISING UNDER THE GUISE OF CONTINUING EDUCATION FOR MEDICAL PROFESSIONALS HE ALSO HAS SUPPORT AMONG FOOD AND DRUG COMPANIES THAT CREDIT HIM WITH REBUILDING AN AGENCY TARNISHED BY THE GENERIC DRUG SCANDAL PUBLIC TRUST IN FDA IS IMPORTANT ASSERTED JEFFREY NEDELMAN A SPOKESMAN FOR THE GROCERY MANUFACTURERS ASSOCIATION DAVID KESSLER HAS DONE A GOOD JOB OF RESTORING TRUST AND VISIBILITY AT THE AGENCY DRUG COMPANIES IN PARTICULAR HAVE APPRECIATED HIS EFFORTS TO SPEED UP THE APPROVAL PROCESS FOR NEW PRODUCTS BUT DR KESSLER HAS RUFFLED INDUSTRY FEATHERS WITH HIS ZEAL PARTICULARLY WITH HIS HIGHLY PUBLIC AGGRESSIVE APPROACH TO REGULATION AND ENFORCEMENT HILARY STOUT AND ROSE GUTFELD CONTRIBUTED TO THIS ARTICLE 9301220060 930122 WHO'S NEWS WANG'S CHIEF QUITS AS COMPUTER MAKER NEARS END OF BANKRUPTCY PROCEEDINGS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL LOWELL MASS RICHARD W MILLER WHO WAS HIRED THREE YEARS AGO TO REVIVE WANG LABORATORIES INC BUT ENDED UP OVERSEEING ITS FILING FOR BANKRUPTCYCOURT PROTECTION RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OF THE COMPUTER MAKER MR MILLER 52 YEARS OLD SAID WANG NO LONGER NEEDS HIS SERVICES BECAUSE IT IS CLOSE TO EMERGING FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS AND A MANAGEMENT TEAM THAT HE BROUGHT ON BOARD IS IN PLACE HE SAID THE DECISION TO LEAVE WAS HIS OWN AND WASN'T SOUGHT BY THE BOARD OR BY THE WANG FAMILY WHICH STILL HOLDS A CONTROLLING STAKE IN THE COMPANY WANG NEEDS TO FINALIZE A SMALLER AND LESS COSTLY MANAGEMENT STRUCTURE MR MILLER SAID HIS MINIMUM 700000 ANNUAL SALARY WAS SAID BY NEWSPAPER REPORTS TO BE A FACTOR IN HIS DEPARTURE ALTHOUGH MR MILLER DENIED AT A NEWS CONFERENCE THAT THE BOARD VIEWED HIS SALARY AS AN ISSUE SUCCEEDING MR MILLER ARE THREE WANG EXECUTIVE VICE PRESIDENTS WHO WILL SERVE JOINTLY IN A NEW CORPORATE EXECUTIVE OFFICE MICHAEL F MEE 50 WILL BE CHAIRMAN AND CHIEF FINANCIAL OFFICER DONALD P CASEY 46 WILL BE PRESIDENT AND CHIEF DEVELOPMENT OFFICER AND JOSEPH M TUCCI 44 WILL BE CHIEF EXECUTIVE OFFICER AND SHARE THE TITLE OF PRESIDENT THE THREE WERE RECRUITED BY MR MILLER AFTER HE JOINED WANG IN 1989 AND HAVE HELPED HIM RUN THE COMPANY FOR TWO YEARS MR MILLER WHO WILL REMAIN A DIRECTOR FOR NOW SAID HE DOESN'T HAVE ANY OTHER IMMEDIATE PLANS JOHN MCCARTHY OF CONSULTANT FORRESTER RESEARCH INC CAMBRIDGE MASS SAID MR MILLER'S DEPARTURE IS A BLOW TO THE COMPANY THIS IS ONE MORE NAIL IN THE COFFIN HE SAID THEY DON'T HAVE TIME FOR THIS KIND OF DISRUPTION IF THE BOARD SOUGHT MR MILLER'S DEPARTURE TO AVOID HIS SALARY HE SAID THEY'RE TRIPPING OVER DOLLARS TO PICK UP THE PENNIES IN ADDITION TO MR MILLER'S MINIMUM 700000 SALARY HE WAS ENTITLED TO A MINIMUM BONUS OF 300000 A YEAR IN TWO INSTALLMENTS THE JUNE 1992 INSTALLMENT WASN'T PAID ACCORDING TO THE LATEST PROXY STATEMENT AND MR MILLER SAID HE DIDN'T RECEIVE A BONUS IN DECEMBER ALTHOUGH A TURNAROUND ARTIST MR MILLER HAS SAID THAT THE PROBLEMS HE ENCOUNTERED AT WANG WERE MUCH DEEPER THAN HE HAD ANTICIPATED BECAUSE OF THE UPHEAVAL IN THE COMPUTER INDUSTRY THE COMPANY'S HEAVY DEBT AND WANG'S OWN PRODUCT PROBLEMS MR MILLER CONCEDED HE IS LEAVING UNFINISHED BUSINESS AT THE COMPANY BUT HAS SAID HE THINKS THE COMPANY CAN THRIVE AS A SMALLER CONCERN WANG HAS SAID IT EXPECTS TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS FOCUSED ON SOFTWARE AND OFFICEAUTOMATION TECHNOLOGIES AFTER SHEDDING MOST OF ITS MANUFACTURING OPERATIONS THE COMPANY WHICH PIONEERED OFFICE COMPUTERS ONCE HAD MORE THAN 3 BILLION IN ANNUAL REVENUE AND 31500 EMPLOYEES IN THE FISCAL YEAR ENDED LAST JUNE 30 IT HAD A LOSS OF 3855 MILLION ON REVENUE OF 209 BILLION WANG HAS PARED ITS WORKFORCE TO 10000 FROM 12900 AT THE TIME OF THE BANKRUPTCY FILING AND OFFICIALS HAVE SAID THE COMPANY EVENTUALLY PLANS TO FURTHER REDUCE EMPLOYMENT TO ABOUT 8000 C HALL SWAIM AN ATTORNEY REPRESENTING THE CREDITOR COMMITTEE EXPRESSED SUPPORT FOR THE NEW MANAGEMENT TEAM AND SAID THE COMPANY AIMS TO FILE A PLAN TO EMERGE FROM COURT PROTECTION BY MARCH 16 IN AMERICAN STOCK EXCHANGE TRADING WANG CLASS B SHARES ROSE 625 CENTS TO 50 CENTS ON THE QUESTION OF MR MILLER'S SALARY MR SWAIM SAID IT BECAME CLEAR TO THE CHIEF EXECUTIVE THAT A SMALLER WANG WOULDN'T SUPPORT THE KIND OF SALARY HE HAD WHEN HE JOINED THE COMPANY MR MILLER WHO SAID HE HAD BEEN THINKING ABOUT RESIGNING FOR ONE OR TWO MONTHS SOUNDED READY TO DO SOMETHING NEW I HAVE SPENT A CAREER GOING INTO BURNING BUILDINGS AND TRYING TO PUT OUT FIRES HE SAID THE FIRE AT WANG HE SAID WAS NOW ONLY SMOLDERING BUT MR MILLER SAID HE HAS NO PLANS TO JOIN ANOTHER COMPANY YET I HAVEN'T SPENT 10 MINUTES THINKING ABOUT THAT AMONG OTHER THINGS MR MILLER PREVIOUSLY HELPED PENN CENTRAL CORP EMERGE FROM BANKRUPTCY AND TURNED AROUND RCA CORP'S CONSUMER ELECTRONICS OPERATIONS AT WANG HE GOT HIGH MARKS FOR SLASHING THE COMPANY'S 11 BILLION OF DEBT MOSTLY BY SELLING ASSETS AND CUT EXPENSES AND THE PAYROLL HE ALSO MADE A TECHNOLOGY AND MARKETING AGREEMENT WITH INTERNATIONAL BUSINESS MACHINES CORP UNDER WHICH WANG WOULD RESELL IBM'S MOST ADVANCED WORKSTATIONS AND NETWORK COMPUTERS OUTFITTED WITH WANG'S OFFICEAUTOMATION SOFTWARE IBM ALSO INVESTED 25 MILLION IN WANG CONVERTIBLE DEBT WITH AN OPTION FOR MORE BUT MR MILLER ALSO AGREED TO SELL IBM'S AS/400 COMPUTERS WHICH COMPETED DIRECTLY WITH WANG'S OWN MINICOMPUTER LINE PROMPTING SOME ANALYSTS TO SAY HE HAD SURRENDERED TO IBM IT ISN'T CLEAR WHETHER THE MOVE MADE MUCH DIFFERENCE AS MOST WANG MINICOMPUTER OWNERS WERE MAKING PLANS TO MOVE TO OTHER COMPUTER DESIGNS ANYWAY 9301220059 930113 BUSINESS BRIEF DRUG EMPORIUM HAD LOSS IN QUARTER MAY FURTHER TRIM MANAGEMENT RANKS COLUMBUS OHIO DRUG EMPORIUM INC CITING INCREASED COMPETITION FROM GROCERY STORES POSTED A FISCAL THIRDQUARTER LOSS AND SAID IT MAY FURTHER TIGHTEN MANAGEMENT RANKS THE DISCOUNT DRUGSTORE CHAIN SAID IT HAD A LOSS OF 29 MILLION OR 17 CENTS A SHARE IN THE QUARTER ENDED NOV 28 IN THE YEARAGO QUARTER DRUG EMPORIUM EARNED 637000 OR FIVE CENTS A SHARE ON SALES OF 1778 MILLION TOTAL SALES IN THE QUARTER ROSE 31 TO 1833 MILLION BUT SAMESTORE SALES DECLINED 4 IN A LOWCOST LOWMARGIN BUSINESS A NUMBER LIKE 4 IS SIGNIFICANT SAID VICE CHAIRMAN GARY WILBER RESULTS WERE ALSO HURT BY INCREASED SALES GENERAL AND ADMINISTRATIVE COSTS WHICH INCREASED 15 TO 392 MILLION FOR THE QUARTER SAID GARY DENNIS AN ANALYST AT JC BRADFORD IN KNOXVILLE TENN MR WILBER SAID THE CHAIN TOOK SEVERAL COSTCUTTING STEPS IN THE LAST MONTH INCLUDING LAYING OFF THREE EXECUTIVES AND ELIMINATING THEIR POSTS THE THREE ARE RICHARD LANDERS WHO WAS VICE PRESIDENT OF MERCHANDISE AND MARKETING ROBERT RAMSEY DIRECTOR OF MARKETING AND FRANK SHANOWER VICE PRESIDENT OF TRADE RELATIONS DRUG EMPORIUM ALSO CUT MANAGEMENT PAY BY 5 FROZE HIRING AND ELIMINATED SOME EXECUTIVE PERQUISITES MR WILBER SAID THE BOARD WILL CONSIDER FURTHER CUTS WHEN IT MEETS LATER THIS MONTH THE CHAIN HAS BEEN IN CONSTANT TURMOIL IN RECENT YEARS IN THE LAST 18 MONTHS IT HAS FIRED TWO CHIEF FINANCIAL OFFICERS RETIRED ITS FOUNDING CHAIRMAN AND CHIEF EXECUTIVE PHILIP I WILBER AND SHUNTED MR WILBER'S SUCCESSOR HIS SON GARY INTO THE NEWLY CREATED POST OF VICE CHAIRMAN THE NEW CHAIRMAN AND CHIEF EXECUTIVE LONGTIME DIRECTOR DAVID L KRIEGLE ASSUMED HIS POSTS LAST WEEK THE ELDER MR WILBER REMAINS ON PAYROLL AS A FOUNDING CHAIRMAN BUT THAT POST MAY BE ELIMINATED ALONG WITH THREE OTHER POSTS LATER THIS MONTH THE YOUNGER MR WILBER SAID INVESTORS HAD HOPED THAT DRUG EMPORIUM COULD PUSH THROUGH PRICE INCREASES AFTER RIVAL PHARMOR INC FILED FOR BANKRUPTCYLAW PROTECTION LAST YEAR BUT INSTEAD DRUG EMPORIUM FOUND INCREASED COMPETITION FROM GROCERY STORES WITH HEALTH AND BEAUTY SECTIONS AND FROM MASS MERCHANDISERS SUCH AS WALMART STORES INC GIVEN ALL THE COMPETITION I DON'T THINK DRUG EMPORIUM HAS A PARTICULARLY VIABLE FORMAT SCOTT & STRINGFELLOW INC ANALYST NEAL KAPLAN SAID DRUG EMPORIUM IS A NATIONAL CHAIN OF 136 COMPANYOWNED STORES AND 98 FRANCHISED STORES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ITS SHARES SLIPPED 625 CENTS TO 4875 DRUG EMPORIUM INC FIRED ONE CHIEF FINANCIAL OFFICER IN AUGUST 1991 WHILE A SECOND CHIEF FINANCIAL OFFICER STEPHEN R POHLIT RESIGNED VOLUNTARILY LAST NOVEMBER AN ARTICLE JAN 13 INCORRECTLY STATED THAT DRUG EMPORIUM FIRED TWO CHIEF FINANCIAL OFFICERS IN THE PAST 18 MONTHS 9301220058 930122 POLITICS & POLICY GINGRICH FACES THREAT TO HIS HOUSE POWER BASE REFLECTING THE TURMOIL HE HAS LONG PROMOTED BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LIKE ROBESPIERRE NEWT GINGRICH MUST WORRY ABOUT HIS BASE FOR THE PAST DECADE THE GEORGIA REPUBLICAN HAS CUT A SWATH THROUGH THE HOUSE AS A PARTISAN REVOLUTIONARY WHOSE AUDACITY AND INTELLECT RALLIED NOT ONLY FELLOW CONSERVATIVES BUT MODERATES OF HIS OWN GENERATION THIS ABILITY TO STRADDLE DIVERSE CAMPS MADE HIM GOP WHIP FOUR YEARS AGO YET AS HEIR APPARENT TO MINORITY LEADER ROBERT MICHEL OF ILLINOIS THE GEORGIA FIREBRAND IS NOW THREATENED BY THE SAME TURMOIL HE HAS LONG PROMOTED PRESIDENT BUSH'S DEFEAT AND THE INFLUX OF A LARGE GOP FRESHMAN CLASS HAVE ENERGIZED CONSERVATIVE ACTIVISTS AND HELPED DRIVE MODERATES FROM THE HOUSE REPUBLICAN HIERARCHY TEXAS REPS RICHARD ARMEY AND TOM DELAY WHO WON LEADERSHIP ELECTIONS LAST MONTH SYMBOLIZE THIS NEW AGGRESSIVENESS WHICH HAS COME AT THE EXPENSE OF THE GOP'S OLD NORTHEASTMIDWEST POWER CENTERS MR GINGRICH HAS GAINED IN THE SHORT TERM BUT ALSO LOST PRECIOUS ROOM IN WHICH TO MANEUVER MR ARMEY'S AMIABLE STYLE AND ECONOMICS BACKGROUND MAKE HIM A POTENTIAL THREAT ON THE RIGHT AND EVEN AS MR GINGRICH SEEKS TO PROTECT THIS FLANK HIS MODERATES ARE DEFECTING TO BECOME THE NEW REBELS IN THE PARTY THIS PARTY DESPERATELY NEEDS SOME TENSION FROM THE CENTER SAYS WISCONSIN REP STEVE GUNDERSON WHO LEFT THE LEADERSHIP THIS MONTH WITH A BLAST AT CONSERVATIVES REP FRED UPTON A FELLOW MIDWESTERNER FROM MICHIGAN AND PROTEGE OF REAGAN BUDGET DIRECTOR DAVID STOCKMAN FOLLOWED SUIT DAYS LATER AND WHILE MR GINGRICH PROTESTS THAT HE BACKED A MODERATE REP NANCY JOHNSON FOR THE LEADERSHIP THE CONNECTICUT REPUBLICAN IS SKEPTICAL ABOUT HIS COMMITMENT TO HER UNSUCCESSFUL CAUCUS RACE HE OPENLY SUPPORTED ME SHE SAYS BUT YOU NEVER CAN TELL THE TENSIONS ARE REVEALING NOT ONLY OF MR GINGRICH BUT ALSO OF REPUBLICANS MORE BROADLY IN CONGRESS MODERATES WERE REBUFFED WITH EQUAL FORCE IN SENATE CAUCUSES AFTER NOVEMBER'S ELECTION AND BOTH MR MICHEL AND SENATE GOP LEADER ROBERT DOLE OF KANSAS ARE MIDWESTERN WORLD WAR II VETERANS OVERSEEING A PARTY DRIVEN INCREASINGLY BY YOUNGER SOUTHERNERS WHOSE FORMATIVE POLITICAL YEARS WERE TOGETHER IN THE HOUSE UNDER PRESIDENT REAGAN MR GINGRICH WHOSE OWN GEORGIA ADDED THREE NEW GOP CONGRESSMEN AND A SENATOR LAST FALL FITS SOLIDLY IN THIS CAMP A ROCKEFELLER REPUBLICAN LONG AGO HIS POLITICAL EVOLUTION OWES LESS TO IDEOLOGY THAN A FIERCE AMBITION AND THE KNOWLEDGE THAT HE PROSPERS BEST AMID MOVEMENT FROM ONE ISSUE TO THE NEXT HE HAS ADVANCED BY RECASTING HIMSELF AS AN OPPONENT OF THE STATUS QUO NOW ON THE BRINK OF SUCCESS HE LIKE POGO HAS MET THE ENEMY ESTABLISHMENT AND IT IS HIMSELF WHAT I SEE DEVELOPING IS AN INSIDE CLIQUE VS EVERYBODY ELSE SAYS MS JOHNSON WHO WAS VITAL TO MR GINGRICH'S RISE BUT NOW FEELS OSTRACIZED FROM HIS LEADERSHIP HE NEEDS NEW FRIENDS AND SPEECHES SAYS MR GUNDERSON IN POLITICS PERCEPTION IS REALITY AND THE PERCEPTION IS THIS PARTY IS MUCH MORE RIGID ON THE RIGHT MR GINGRICH'S LEADERSHIP OF THE CONSERVATIVE POLITICALACTION COMMITTEE KNOWN AS GOPAC LED TO CRITICISM LAST YEAR FOR EXCESSIVE SPENDING AND A RELIANCE ON WEALTHY INDIVIDUALS AND CORPORATIONS FOR POLITICAL FINANCING MORE SENSITIVE STILL IS HIS ALLIANCE WITH FORMER HOUSE REPUBLICAN CAMPAIGN CHAIRMAN GUY VANDER JAGT OF MICHIGAN NEW LEADERSHIP UNDER REP BILL PAXON OF NEW YORK HAS FORCED A REVIEW OF COSTLY FUNDRAISING CONTRACTS AUTHORIZED BY MR VANDER JAGT THOUGH ALL SIDES ARE ANXIOUS TO RESOLVE THE MATTER QUIETLY THE REVIEW LENDS SUPPORT TO PAST COMPLAINTS OF FAVORITISM THAT COULD PROVE EMBARRASSING LOOKING AHEAD MR GINGRICH WARNS REPUBLICANS AGAINST REFIGHTING THE DIVISIVE ISSUES OF THE 1970S THE LAST TIME A DEMOCRAT WAS PRESIDENT AND INSTEAD URGES THE PARTY TO USE THIS PERIOD TO FINALLY FORCE THE NEXT GENERATION OF IDEAS INTO POLITICS ALL OF US WHO GREW UP AS SORT OF REAGAN LIEUTENANTS HE SAYS NOW FIND OURSELVES WITH AN ENORMOUS OPPORTUNITY TO RETHINK WHAT AMERICA WANTS INSTEAD OF THE SOVIET EVIL EMPIRE THE GREAT CHALLENGE AHEAD IS THE DECAY OF AMERICAN CIVILIZATION THE SAME LEADER WHO ATTACKED EMERGENCY AID FOR LOS ANGELES AFTER LAST YEAR'S RIOTING NOW WOULD FIND COMMON ENEMY WITH POOR BLACK PEOPLE AGAINST THE BUREAUCRACY OF URBAN SCHOOLS AND CITY HALLS IF WE CAN'T REFORM ANACOSTIA HE SAID OF THE OFT FORGOTTEN LOWINCOME NEIGHBORHOOD IN WASHINGTON WE CAN'T PROJECT PEACE TO SOMALIA ALL THIS FROM A GEORGIAN WHO HAS SEEN HIS OWN PARTY STEADILY GAIN STRENGTH AS WHITE SUBURBS PUSH OUT INTO PREVIOUSLY DEMOCRATIC RURAL COUNTIES AROUND ATLANTA YOU CAN'T GET TO A HEALTHY AMERICA HE SAYS WITHOUT SOLVING PROBLEMS FOR AREAS YOU DON'T REPRESENT BUT MR GINGRICH'S SOUTHERN IDENTITY PUTS HIM ON THE OPPOSITE SIDE OF THE REGIONAL DIVIDE SEPARATING THE OLD NORTHERN WING OF THE PARTY FROM THE NEW SUNBELT MAJORITY REPUBLICANS HAVE A MAJOR PROBLEM WITH THE REPUBLICANS FROM THE NORTHERN AXIS SAYS POLITICAL ANALYST KEVIN PHILLIPS HOW CAN HE GINGRICH REPRESENT THE EMERGING DISSIDENTS OF NEW ENGLAND WHEN HE'S A SOUTHERNER IN THE PAST DECADE MEMBERS OF THE 18STATE NORTHEASTMIDWEST REGION HAVE GONE FROM BEING A MAJORITY OF THE GOP CAUCUS TO A DECLINING MINORITY OFTEN AT ODDS WITH THEIR COLLEAGUES ON ISSUES SUCH AS ABORTION AND SPENDING PRIORITIES REP UPTON FOR EXAMPLE SAYS HE PAID A POLITICAL PRICE NOT ONLY FOR HIS SUPPORT OF ABORTION RIGHTS BUT ALSO FOR WANTING TO CUT FUNDING FROM THE SPACE STATION AND TEXASBASED SUPERCONDUCTING SUPER COLLIDER FOR ANOTHER SOUTHERNER PRESIDENT CLINTON THESE DEFECTIONS BEAR WATCHING REPUBLICANS HAVE AT LEAST 30 MORE VOTES TODAY THAN IN THE FIRST YEAR OF JIMMY CARTER'S PRESIDENCY WHEN BUSINESS STUNG LABOR IN A HIGHPROFILE FIGHT OVER THE CONSTRUCTION INDUSTRY FROM HEALTH CARE TO TAXES THE NEW PRESIDENT IS VULNERABLE TO THE SAME STRATEGY OF RIFLESHOT AMENDMENTS DESIGNED AROUND FLOATING COALITIONS OF MODERATES IN BOTH PARTIES AND CONSERVATIVE DEMOCRATS THE POTENTIAL FOR SUCH COALITIONS WAS SEEN IN THE RECENT DEMOCRATIC RACE FOR HOUSE BUDGET COMMITTEE CHAIRMAN REP JOHN SPRATT A SOUTH CAROLINA MODERATE LOST TO THE MORE LIBERAL REP MARTIN SABO OF MINNESOTA BUT MADE A SURPRISINGLY STRONG SHOWING BY CAPTURING 112 VOTES IN THE DEMOCRATIC CAUCUS THAT'S 112 VOTES WHO RESPONDED TO AN UNABASHED APPEAL FOR STIFFER ACTION ON THE DEFICIT SAID MR SPRATT IN HIS GOAL TO BE GOP HOUSE LEADER MR GINGRICH'S OWN NECK IN THE SPIRIT OF FRENCH REVOLUTIONARY ROBESPIERRE COULD BE LOST IF PRESIDENT CLINTON STRIKES FIRST BY CAPTURING DISILLUSIONED REPUBLICANS AND DISCREDITING GOP CONSERVATIVES AS A FORCE I WILL BET GINGRICH WILL NOT BECOME THE NEXT LEADER WITHOUT A SERIOUS CHALLENGE SAYS ED ROLLINS A POLITICAL CONSULTANT WHO HAS FOUGHT BOTH ALONGSIDE AND AGAINST THE REPUBLICAN WHIP THE REAL TEST IS THE NEXT TWO YEARS NEWT HAS TO DECIDE WHETHER HE WANTS TO GO BACK TO BEING THE GUERRILLA LEADER OR WHETHER HE WANTS TO MOLD ALTERNATIVE IDEAS 9301220057 930122 NOTE TO INNKEEPERS WE WANT TO LEAD YOUR LIFE BECAUSE WINNING THIS ESSAY CONTEST COULD EARN YOU THE RIGHT TO CATER TO FINICKY GUESTS BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL CENTER LOVELL MAINE THE CENTER LOVELL INN IS CLOSED FOR THE WINTER AND WON'T OPEN AGAIN UNTIL MAY BUT IN RECENT WEEKS THE PROPRIETORS HAVE BEEN INUNDATED WITH CALLS FROM CALIFORNIA ALABAMA AND INDIANA AND LETTERS FROM AS FAR AWAY AS CHINA RUSSIA AND ECUADOR PROSPECTIVE CUSTOMERS BOOKING ROOMS NO PROSPECTIVE OWNERS BIL AND SUSIE MOSCA ARE HOLDING AN ESSAY CONTEST TO VIRTUALLY GIVE AWAY THEIR COZY 11BEDROOM INN CHARGING WOULDBE INNKEEPERS A MERE 100 A POP FOR THE OPPORTUNITY TO GET AWAY FROM THE RAT RACE I DON'T KNOW WHEN I'VE EVER BEEN SO EXCITED ABOUT SOMETHING SAYS BARBARA BENITZ A 64YEAROLD HOME DECORATOR IN BALTIMORE WHO WANTS TO CHUCK IT ALL AND MOVE HERE WITH HER TWO GROWN CHILDREN HOPING TO IMPROVE THEIR CHANCES THEY SENT IN THREE ESSAYS AND 300 AND ARE SENDING THE MOSCAS POLAROID PHOTOS OF THE FAMILY EVERY TWO WEEKS SO THEY WON'T FORGET US JUDSON STARR A 47YEAROLD WASHINGTON DC ATTORNEY PRESENTED HIS WIFE PIPER WITH AN AFFIDAVIT AS A CHRISTMAS PRESENT AGREEING TO GIVE UP HIS LAW PRACTICE IF SHE WINS THE INN IT HAS ALWAYS BEEN HER DREAM TO OWN AN INN HE SAYS I'VE ALWAYS BEEN THE IMPEDIMENT OTHER INNKEEPER WANNABES HAVE SOUGHT TO INGRATIATE THEMSELVES WITH CHRISTMAS CARDS BUTTER COOKIES AND POEMS ONE CONTESTANT SENT A TENNIS SHOE SAYING SHE WANTED TO GET HER FOOT IN THE DOOR SURE CENTER LOVELL IS REMOTE A 90MINUTE DRIVE FROM PORTLAND COLD TEMPERATURES DROP TO 19 DEGREES BELOW ZERO AND SOMEWHAT LONELY POPULATION APPROXIMATELY 900 AND SOME TAX EXPERTS SAY THE WINNER WILL BE IMMEDIATELY LIABLE FOR 100000 IN TAXES STILL MR MOSCA NOTES FOR MANY NINETOFIVERS FED UP WITH CITY LIFE THE BUCOLIC IMAGE OF RUNNING A NEW ENGLAND COUNTRY INN CONJURES UP A DREAM EVEN IF IT DOES MEAN MAKING BEDS DOING DISHES COOKING MEALS CLEANING BATHROOMS AND OTHERWISE CATERING TO THE WHIMS OF SPOILED YUPPIES AND OTHER FINICKY GUESTS THAT IN FACT IS WHY THE MOSCAS WANT TO CALL IT QUITS THEY BOUGHT THE FOURACRE PROPERTY IN 1974 AFTER DECIDING THEY DIDN'T REALLY WANT TO BECOME WHAT THEY HAD BEEN STUDYING TO BECOME IN HIS CASE A SOCIOLOGIST IN HERS A TEACHER THE BUILDING DATING BACK TO 1805 WAS ABANDONED WITH NO HEAT WATER OR PLUMBING THE MOSCAS PAID 39500 FOR THE PROPERTY SPENT 200000 RENOVATING IT AND NOW OPERATE THE INN SIX MONTHS A YEAR BUT AFTER 19 YEARS OF INNKEEPING THEY ARE TIRED OF ENTERTAINING THERE ARE SO MANY OTHER THINGS OUT THERE WE CAN DO SAYS MRS MOSCA WHO IS 41 YEARS OLD WARY OF THE WEAK REAL ESTATE MARKET AND UNWILLING TO ACCEPT LESS THAN THE 500000 THEY THINK THE INN IS WORTH THE MOSCAS DREAMED UP THE CONTEST AS A WAY TO GET THEIR ASKING PRICE WITH A MINIMUM OF RISK TO DISCOURAGE SPECULATORS SEEKING TO MAKE A QUICK PROFIT THE RULES REQUIRE THAT THE WINNER OPERATE THE INN AT LEAST ONE YEAR BEFORE SELLING IT WITH ITS MANSARD ROOF WINDOWED CUPOLA AND WRAPAROUND PORCH THE INN SITS ON A HILL NEAR THE SHORES OF KEZAR LAKE WITH VIEWS OF THE WHITE MOUNTAINS FLOWERED WALLPAPER LACE BEDSPREADS AND ANTIQUE LAMPS ADD HOMEY TOUCHES AS DOES THE WELLWORN FURNITURE IT'S NOT THE RITZ CONCEDES THE 48YEAROLD MR MOSCA WHO HAS PLASTERED PAINTED AND OTHERWISE RENOVATED SINCE BUYING THE PLACE TO GET WHAT THEY THINK THE INN IS WORTH THE MOSCAS NEED 5000 ESSAYS BY THE MAY 1 DEADLINE IF THEY GET FAR BELOW THAT NUMBER THEY SAY THEY WILL RETURN THE ENTRY FEES AND KEEP THE INN THEY WON'T REVEAL HOW MANY ENTRIES THEY HAVE RECEIVED SO FAR BUT SAY THAT MORE THAN 8000 PEOPLE HAVE REQUESTED A COPY OF THE RULES SINCE THE CONTEST WAS FIRST PUBLICIZED IN YANKEE MAGAZINE LAST NOVEMBER AN ENTRY MUST BE NO MORE THAN 250 WORDS A LENGTHIER REQUIREMENT MIGHT DISCOURAGE APPLICANTS THE MOSCAS FEAR AND BEGIN WITH THE SENTENCE I WOULD LIKE TO OWN AND OPERATE AN OLDFASHIONED COUNTRY INN LIKE THE CENTER LOVELL INN IT MUST ALSO BE ACCOMPANIED BY A CASHIER'S CHECK OR MONEY ORDER FOR THE 100 WHICH THE MOSCAS SAY WILL BE HELD IN ESCROW THE WINNER WILL BE SELECTED BY A PANEL OF FOUR JUDGES PICKED BY THE MOSCAS THE COUPLE WON'T IDENTIFY THE JUDGES BUT INSIST THEY ARE COMPLETELY INDEPENDENT THE WINNER IS SOLELY RESPONSIBLE FOR ANY AND ALL TAXES INCLUDING REAL ESTATE TRANSFER TAXES LAWYER'S FEES AND ALL OTHER FEES THE CONTEST RULES STIPULATE THOSE TAXES WHICH WOULD INCLUDE FEDERAL INCOME TAXES ON PRIZE WINNINGS WILL EXCEED 100000 ATTORNEYS SAY THE IRS MAY HAVE DREAMED THIS ONE UP SAYS WILLIAM OATES PRESIDENT OF AN INN CONSULTING FIRM IN BRATTLEBORO VT HE REMAINS HIGHLY SKEPTICAL THAT 5000 PEOPLE WILL ENTER THE CONTEST AND HE ISN'T THE ONLY ONE THE PUBLIC IS CONCERNED ABOUT SCAMS THAT MAYBE THIS IS A SCAM AND THERE'S NO PRIZE AT ALL SAYS WAYNE MOSS ASSISTANT ATTORNEY GENERAL FOR THE STATE OF MAINE WHO HAS RECEIVED ABOUT 30 PHONE CALLS FROM WOULDBE ENTRANTS MR MOSS WAS BRIEFED ON THE CONTEST BY THE MOSCAS BEFORE IT BEGAN HE SAYS IT'S LEGAL ALTHOUGH THE ATTORNEY GENERAL'S OFFICE IS KEEPING AN EYE ON THINGS TO MAKE SURE THE MOSCAS LIVE UP TO THEIR PROMISES DESPITE THE ROMANTIC IMAGE INNKEEPING ISN'T ALWAYS FINANCIALLY REWARDING SOME BUYERS WHO PAID INFLATED PRICES FOR NEW ENGLAND INNS DURING THE 1980S REAL ESTATE BOOM HAVE LOST MONEY RUNNING THEM MR MOSCA SAYS THE CENTER LOVELL INN WHICH CHARGES 115 TO 160 A NIGHT INCLUDING BREAKFAST AND DINNER FOR TWO TURNS A PROFIT THOUGH HE WON'T SAY HOW MUCH OF COURSE EVEN IF BUSINESS SLUMPS THE INN SHOULDN'T BE A MONEY PIT FOR THE CONTEST WINNER BECAUSE IT WILL BE A BARGAIN THE WINNER COULD ALWAYS SELL FOR A PROFIT AFTER A YEAR EVEN AFTER TAKING INTO ACCOUNT ANY OPERATING EXPENSES AND INCOME AND PROPERTY TAXES INCURRED BUT IT'S CLEAR THAT MANY OF THE WOULDBE INNKEEPERS AREN'T LOOKING AT THIS IN FINANCIAL TERMS RICHARD LANZETTA 26 A HOSPITAL SUPERVISOR IN PHILADELPHIA IS PLANNING TO ENTER THE CONTEST EVEN THOUGH HE HAS NO IDEA HOW TO RUN AN INN BUT I LIKE WHALE WATCHING AND THE OUTDOORS HE SAYS APPARENTLY OBLIVIOUS TO THE FACT THAT CENTER LOVELL IS ABOUT 60 MILES FROM THE OCEAN I'D PROBABLY SPEND THE FIRST TWO MONTHS ON THE PORCH JUST LOVING IT OTHERS WHO HAVE INQUIRED INCLUDE A CALIFORNIA GRANDMOTHER WHO RUNS A DOCTOR'S OFFICE A FLORIDA RESTAURANT MANAGER A MAINE HOUSEWIFE A NEW YORK PARAMEDIC A NEW HAMPSHIRE PARALEGAL AND A CONNECTICUT THERAPIST WHO DREAMS OF RUNNING AN INN WHERE PEOPLE COULD COME FOR REST RELAXATION AND THERAPY MEANWHILE THE MOSCAS ARE MAKING THEIR OWN PLANS FOR AFTER THE HOPEDFOR SALE THEY SAY THEY AND THEIR TWO DAUGHTERS 10YEAROLD KRISTA AND 14YEAROLD ANNA MAY MOVE TO THE DOMINICAN REPUBLIC OR COSTA RICA WHERE THEY WOULD OPEN A SMALL BUSINESS OF SOME SORT BUT NOT AN INN SAYS MR MOSCA I LIKE THE IDEA OF PALM TREES 9301220056 930122 CALPERS GOES OVER CEOS' HEADS IN ITS QUEST FOR HIGHER RETURNS BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL THE 68 BILLION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM HAS BEGUN BYPASSING CHIEF EXECUTIVE OFFICERS AND MEETING ALONE WITH OUTSIDE CORPORATE DIRECTORS IN ITS QUEST FOR BETTER FINANCIAL PERFORMANCE FROM THE COMPANIES IT INVESTS IN ACCORDING TO AN INTERNAL REPORT DUE TO BE RELEASED TODAY THE REPORT DISCLOSES A LIST OF 12 COMPANIES THAT CALPERS IS TARGETING FOR PRESSURE IN AN EFFORT TO IMPROVE THEIR FINANCIAL PERFORMANCE AND STOCK PRICE THE STRATEGY SHOWS THAT THE NATION'S LARGEST PUBLIC PENSION FUND IS BECOMING MORE AGGRESSIVE IN ITS DEMAND FOR MORE SAY IN HOW COMPANIES ARE RUN WE TRIED A KINDER GENTLER APPROACH BUT WE CONCLUDED THAT WASN'T WORKING SAID DALE HANSON CHIEF EXECUTIVE OFFICER OF CALPERS HE HOPES THE NEW STRATEGY WILL LEAD TO QUICKER ACTION BY THE COMPANIES IT HAS TARGETED IN RECENT MONTHS CALPERS ALONG WITH OTHER ACTIVIST INSTITUTIONAL SHAREHOLDERS HAS PLAYED A LARGE ROLE IN MAJOR UPHEAVALS AT A NUMBER OF COMPANIES INCLUDING GENERAL MOTORS CORP AND WESTINGHOUSE ELECTRIC CORP THE FUND'S MOREAGGRESSIVE STANCE SUGGESTS THAT MORE CORPORATE SHAKEUPS COULD BE AHEAD IN THE PAST CALPERS WAS WILLING TO NEGOTIATE WITH CORPORATE CHIEF EXECUTIVES ON ITS DEMANDS FOR CHANGES IN CORPORATE STRATEGY AND GOVERNANCE SOMETIMES WORKING QUIETLY BEHIND THE SCENES THE PENSION FUND'S NEW STRATEGY OF MEETING ALONE WITH OUTSIDE DIRECTORS MAY PROVOKE THE IRE OF SOME CHIEF EXECUTIVES IN ADDITION TO MEETING ALONE WITH BOARD MEMBERS CALPERS WILL ALSO BE FILING MORE SHAREHOLDER PROPOSALS THIS YEAR A POLICY THAT IS LIKELY TO CALL MORE ATTENTION TO ITS EFFORTS ALREADY CALPERS HAS MET SEPARATELY WITH THE OUTSIDE DIRECTORS OF SEVEN COMPANIES MR HANSON SAID INCLUDING CHAMPION INTERNATIONAL CORP BOISE CASCADE CORP AND TIME WARNER INC CALPERS ALSO PLANS TO MEET WITH THE OUTSIDE DIRECTORS OF INTERNATIONAL BUSINESS MACHINES CORP FOLLOWING IBM'S NEXT BOARD MEETING HE SAID AND IT HAS SCHEDULED A MEETING WITH THE INDEPENDENT DIRECTORS OF CHRYSLER CORP HE ADDED CALPERS'S NEW STRATEGY IS IN KEEPING WITH A TREND AMONG MANY SHAREHOLDER ACTIVISTS TO FOCUS THEIR EFFORTS ON COMPANIES' INDEPENDENT DIRECTORS SAID RALPH WHITWORTH PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION MANAGEMENT IS INSTINCTIVELY DEFENSIVE HE SAID BUT DIRECTORS ARE ULTIMATELY RESPONSIBLE AND YOU CAN PUT THEM IN AN EMBARRASSING POSITION IN ITS REPORT CALPERS INDICATES THAT A GROWING NUMBER OF COMPANIES ARE BEGINNING TO BUCKLE UNDER PRESSURE FOR EXAMPLE CHAMPION INTERNATIONAL A PERENNIAL TARGET OF SHAREHOLDER ACTIVISTS AGREED TO A HOST OF REQUESTS FROM CALPERS FOLLOWING A MEETING WITH OUTSIDE DIRECTORS IN DECEMBER MR HANSON SAID AMONG OTHER THINGS THE COMPANY AGREED TO CONSIDER CANDIDATES FOR DIRECTORS SUGGESTED BY SHAREHOLDER GROUPS WE THINK IT'S A REAL BREAKTHROUGH MR WHITWORTH SAID THEY HAD REALLY DUG THEIR HEELS IN CALPERS ALSO REVEALED THAT IT HAS MADE PROGRESS THOUGH MOSTLY SYMBOLIC IN ITS NEGOTIATIONS WITH RETAILER SEARS ROEBUCK & CO WHERE CHAIRMAN EDWARD BRENNAN HAS PLAYED DOWN THE IMPACT OF SHAREHOLDER ACTIVISM IN THE PAST MR HANSON SAID THAT MR BRENNAN HAS AGREED TO REACH OUT TO CERTAIN SHAREHOLDERS AND TO ACKNOWLEDGE IN A PUBLIC FORUM PERHAPS THE ANNUAL MEETING THE VALUE THAT SHAREHOLDER ACTIVISM HAS ADDED TO THE COMPANY IN THE LAST TWO YEARS OTHER COMPANIES WHICH ARE UNACCUSTOMED TO HAVING TO CONFRONT AGGRESSIVE SHAREHOLDER INITIATIVES ARE FIGHTING BACK ACCORDING TO A LETTER RELEASED BY CALPERS PENNZOIL CO WROTE TO THE SECURITIES AND EXCHANGE COMMISSION ASKING FOR PERMISSION TO OMIT THE CALPERS SHAREHOLDER PROPOSAL FROM THE BALLOT FOR ITS ANNUAL MEETING CALPERS IS ASKING IT TO SET UP A COMMITTEE OF SHAREHOLDERS TO MONITOR PENNZOIL'S FINANCIAL PERFORMANCE A PENNZOIL SPOKESMAN SAID THE COMPANY IS WILLING TO MEET WITH CALPERS HOWEVER THE REPORT SUGGESTS THAT CALPERS IS TRYING TO ENLARGE ITS INFLUENCE IN OTHER WAYS FOR EXAMPLE THE PENSION FUND SAID IS LOOKING TO EXPAND ITS EFFORTS TO FOREIGN COMPANIES WHERE IT HAS INVESTMENTS PARTICULARLY THOSE IN THE UNITED KINGDOM AND JAPAN CALPERS ALSO SAID IT HAS ALSO ORGANIZED A GROUP OF ATTORNEYS FROM LARGE CALIFORNIA CORPORATIONS INCLUDING WALT DISNEY CO AND BANKAMERICA CORP TO STUDY SHAREHOLDER ACTIVISM CALPERS ALSO SAID THAT ADVANCED MICRO DEVICES INC HAS AGREED TO MEET WITH CALPERS NEXT WEEK TO DISCUSS THE FUND'S SHAREHOLDER PROPOSAL THAT WOULD REQUIRE THE COMPANY'S CHAIRMAN TO BE AN INDEPENDENT DIRECTOR BOISE CASCADE PLANS TO ADOPT A SET OF CORPORATE PRINCIPLES DRAWN UP BY CALPERS AND A GROUP OF CORPORATE ATTORNEYS THE COMPANY IS CONSIDERING SUBSTITUTING ITS ANTITAKEOVER POISON PILL PROVISION FOR ONE THAT IS LESS DILUTIVE TO SHAREHOLDERS KNOWN AS A CHEWABLE PILL AND IS WORKING WITH CALPERS TO DEVELOP A STUDY COMPARING IT TO ITS PEERS CHAMPION INTERNATIONAL HAS AGREED TO CONSIDER REQUESTS TO MEET WITH THE COMPANY'S LARGEST SHAREHOLDERS AND TO DEVELOP A STUDY COMPARING IT WITH ITS PEERS SIZZLER INTERNATIONAL INC PLANS TO MEET WITH CALPERS NEXT MONTH TO DISCUSS AN AS YET UNDECIDED AGENDA 9301220055 930122 BUSINESS BRIEF CONTINENTAL BANK CORP BANK'S FOURTHQUARTER NET INCREASED 22 TO 61 MILLION CONTINENTAL BANK CORP REPORTED THAT FOURTHQUARTER EARNINGS ROSE 22 TO 61 MILLION OR 95 CENTS A SHARE CONTINUING THE TREND OF STRONGERTHANEXPECTED EARNINGS OF THE NATION'S LARGEST BANKS THE CHICAGO WHOLESALE BANK PREDICTED NONPERFORMING ASSETS WILL DECLINE SIGNIFICANTLY THIS YEAR CONTINENTAL SAID EARNINGS WHICH COMPARED WITH THE YEAREARLIER QUARTER'S RESULTS OF 50 MILLION OR 77 CENTS A SHARE WERE FUELED BY GROWTH IN FEEBASED BUSINESSES SUCH AS CORPORATE FINANCE WIDE NET INTEREST MARGINS AND LOWER INCOME TAX EXPENSES EXPENSES WERE UP SLIGHTLY IN THE QUARTER AND DOWN FOR THE FULL YEAR FOR THE FULL YEAR CONTINENTAL REPORTED EARNINGS OF 222 MILLION OR 344 A SHARE COMPARED WITH A NET LOSS OF 76 MILLION OR 208 A SHARE 9301220054 930122 CORPORATE FOCUS PPG'S CHAIRMAN SARNI WILL BE A TOUGH ACT TO FOLLOW CHALLENGE FOR YETTOBENAMED SUCCESSOR HOW TO KEEP FIRM GROWING BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH AS PPG INDUSTRIES INC POSTS ANOTHER YEAR OF SOLID EARNINGS TWO QUESTIONS REMAIN WHO WILL SUCCEED THE MAN SHEPHERDING THE COMPANY'S IMPRESSIVE EARNINGS GROWTH FOR THE PAST DECADE AND HOW WILL THE SUCCESSOR KEEP IT GROWING PPG REPORTED FOURTHQUARTER NET INCOME OF 679 MILLION OR 64 CENTS A SHARE AND 3194 MILLION OR 301 A SHARE FOR ALL OF 1992 INCLUDING A 21CENTASHARE CHARGE FOR AN ARBITRATION AWARD IN 1991'S FOURTH QUARTER PPG EARNED 315 MILLION OR 29 CENTS A SHARE WHICH INCLUDED 15 CENTS A SHARE IN RESTRUCTURING CHARGES FOR 1991 IT HAD NET INCOME OF 276 MILLION OR 260 A SHARE INCLUDING A NET GAIN OF 24 CENTS A SHARE FROM AN ACCOUNTING CHANGE WHILE THE EARNINGS WERE SHORT OF ANALYSTS' EXPECTATIONS OF 72 CENTS A SHARE FOR THE QUARTER THEY STILL MARK ANOTHER SATISFYING YEAR FOR VINCENT A SARNI CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE OUTSPOKEN EXECUTIVE WHO OFTEN ANSWERS HIS OWN PHONE RETIRES JULY 31 BUT DIRECTORS HAVE YET TO NAME A SUCCESSOR THE TOP CONTENDERS ARE ALL INSIDERS ROBERT D DUNCAN GROUP VICE PRESIDENT GLASS RAYMOND W LEBOEUF VICE PRESIDENT FINANCE AND RICHARD M ROMPALA GROUP VICE PRESIDENT COATINGS AND RESINS THE BOARD WHICH CONSISTS OF ALL OUTSIDERS EXCEPT MR SARNI IS CONSIDERING NONPPG EXECS TOO BUT ANALYSTS DOUBT ONE WILL BE TAPPED FOR THE TOP SPOT PPG IS SO SPECIALIZED THAT ANY OUTSIDER WOULD HAVE TO SPEND MUCH TIME GEARING UP ON ITS PRODUCTS AND MARKETS THE RELUCTANCE TO NAME A SUCCESSOR EARLY SHOWS HOW TIGHTLY THE 64YEAROLD MR SARNI HOLDS THE REINS AT PPG AND HAS EVEN LED TO SOME SPECULATION THAT HE WILL STAY ON THAT'S UP TO THE BOARD SAYS MR SARNI ADDING THAT HIS PREFERENCE IS TO RETIRE LAST AUGUST HE SAID THE BOARD WOULD MAKE AN ANNOUNCEMENT IN 1993'S FIRST QUARTER BUT NOW HE SAYS HE'S UNCERTAIN WHEN THAT MIGHT HAPPEN WHOEVER IS FINALLY TAPPED TO SUCCEED HIM FACES CHALLENGES FINDING NEW DIRECTIONS FOR PPG FOR ONE THING THE COMPANY MAY NO LONGER BE ABLE TO LOOK TO EUROPE FOR SIGNIFICANT EARNINGS AND SALES EUROPE CURRENTLY GENERATES ABOUT 25 OF PPG'S 58 BILLION IN SALES BUT THAT ECONOMY IS IN THE DOLDRUMS MOREOVER AFTER YEARS OF ZEALOUS COST CUTTING THE GLASS CHEMICAL AND COATING MAKER WILL FIND IT TOUGHER TO BOOST EARNINGS BY SQUEEZING OUT EXPENSES THE NEW CEO WILL ALSO FACE INCREASING PRESSURE FROM WALL STREET TO SELL THE COMPANY'S MEDICAL INSTRUMENTS DIVISION A FAILURE ACCORDING TO ANALYSTS WHOEVER GETS THE JOB WILL UNDOUBTEDLY BE STUCK WITH TOUGH COMPARISONS TO THE SARNI REGIME SARNI'S SHOES ARE HUGE SAYS PATRICIA M O'BRIEN AN ANALYST WITH COUNTY NATWEST USA IT'S GOING TO BE REALLY TOUGH TO FILL THEM SO IN A SENSE NOBODY'S GOING TO BE HAPPY BUT THE BATON HAS TO BE PASSED SINCE MR SARNI BEGAN AS CHAIRMAN AND CHIEF EXECUTIVE IN 1984 PPG'S STOCK HAS POSTED AN AVERAGE ANNUAL RETURN STOCK APPRECIATION PLUS DIVIDEND OF 23 HE HAS PUSHED THE ONCESTAID SMOKESTACK COMPANY OVERSEAS AND PROPELLED PRODUCT EXPANSIONS HIS GREATEST LEGACY MAY BE COST CUTTING WHICH HE CALLS PRODUCTIVITY A STRAIGHT SHOOTER COMFORTABLE AMONG PLANT WORKERS AND CORPORATE CHIEFTAINS ALIKE HE HAS LITTLE PATIENCE WHEN IT COMES TO UNDERPERFORMERS I DON'T LIKE IT WHEN WE LOSE MONEY IN ANY PART OF OUR OPERATIONS HE SAYS WHEN THE COATINGS AND RESINS UNIT DIDN'T REBOUND AS QUICKLY AS MR SARNI WANTED THE DIVISION'S CHIEF EUGENE B MOSIER WAS FORCED TO RESIGN MR DUNCAN 53 HAS A STRONG MANUFACTURING BACKGROUND HAVING HEADED BOTH THE GLASS AND CHEMICAL DIVISIONS MR LEBOEUF 46 LACKS MANUFACTURING AND MARKETING EXPERIENCE BUT HAS DABBLED IN EACH DIVISION UNLIKE MR SARNI MESSRS DUNCAN AND LEBOEUF ARE BOTH SAID TO HAVE LOWKEY PERSONALITIES MR ROMPALA 46 MANAGED THE CHEMICAL UNIT BEFORE BEING CALLED IN TO SPEED THE RECOVERY A YEAR AGO IN THE COATINGS AND RESINS UNIT A TASK AT WHICH HE HAS SUCCEEDED HE IS CONSIDERED TO HAVE AN OUTGOING PERSONALITY WITH A FLAIR FOR MARKETING THE BIGGEST CHALLENGE FOR PPG'S NEW LEADER WILL BE DEALING WITH EUROPE PPG WAS ALMOST SHUT DOWN THERE AT SOME PLANTS AND WE DON'T SEE THAT TURNING AROUND IN THE NEAR FUTURE MR SARNI SAYS PPG CAN TRY TO CUT DEEPER INTO EXPENSES BUT IT'S CERTAINLY BECOMING MORE DIFFICULT TO TAKE OUT COSTS SAYS ANDREW W CASH AN ANALYST WITH PAINEWEBBER INC PPG SAYS IT HAS CUT ABOUT 10 OF ITS WORK FORCE SINCE 1984 ALTHOUGH ANALYSTS SAY IT'S MUCH HIGHER IT HAS 33000 EMPLOYEES TODAY AND MANY ARE HANDLING MORE TASKS THAN THEY ONCE WERE MR SARNI CONTENDS PEOPLE MISS THE POINT BOOSTING PRODUCTIVITY NOT CUTTING COSTS IS THE KEY TO PPG'S FUTURE FOR INSTANCE BY SCRUTINIZING ITS MANUFACTURING PROCESS THE COMPANY WAS ABLE TO SLASH THE TIME IT TAKES TO READY A COATINGS ORDER FOR SHIPMENT AFTER RECEIVING IT BY AS MUCH AS 60 DURING THE PAST YEAR INCREASES IN AUTO AND HOME SALES IN THE US SHOULD HELP GLASS AND COATINGS ALTHOUGH GLOBAL CAR PRODUCTION MAY BE FLAT AND EVEN IF THE ECONOMY DOESN'T COOPERATE PPG HAS IN PLACE SEVERAL PROGRAMS TO INCREASE SALES AND EARNINGS IN CHEMICALS THE SECOND GENERATION OF TRANSITIONS A PLASTIC OPTICAL LENS THAT CHANGES TINTS ACCORDING TO LIGHTING IS SELLING WELL MR SARNI EXPECTS IT WILL ADD TO EARNINGS THIS YEAR AND STILL BELIEVES IT CAN BECOME A 250 MILLION A YEAR BUSINESS SEVERAL ANALYSTS DOUBT IT WILL HAVE A MAJOR IMPACT ALTHOUGH DONALD A PATTISON OF CJ LAWRENCE SAYS IT COULD ADD 50 CENTS A SHARE TO EARNINGS IN 1995 IN COATINGS AND RESINS MR CASH ESTIMATES PPG CONTROLS DIRECTLY OR THROUGH LICENSING AGREEMENTS AS MUCH AS 80 OF THE WORLDWIDE MARKET FOR SYSTEMS THAT PAINT CAR FRAMES WITH A PROTECTIVE FINISH IT'S EXPANDING INTO WATERBASED AUTO PAINTS WHICH MANUFACTURERS ARE TURNING TO BECAUSE OF ENVIRONMENTAL CONCERNS WHILE WATERBASED PAINT MAKES UP JUST 10 OF THE MARKET IT IS THE FASTEST GROWING SECTOR OF AUTO PAINTS PPG ALSO IS MOVING INTO INDUSTRIAL COATINGS LIKE APPLIANCES AND SOFT DRINK CANS PPG'S FORAY INTO MEDICAL INSTRUMENTS A MOVE TO DIVERSIFY THE COMPANY HAS COST IT MONEY SO FAR AT LEAST 200 MILLION AND PPG LACKS LITTLE IN THE WAY OF LEADINGEDGE TECHNOLOGY SAYS MS O'BRIEN WHICH WOULD BE CRUCIAL TO TURNING THE UNIT INTO A MONEY MAKER ONCE MR SARNI LEAVES THERE WON'T BE ANYBODY WHO'S GOT A REAL ATTACHMENT TO IT SAYS MR PATTISON WHO ALONG WITH OTHER ANALYSTS EXPECTS PPG WILL DUMP THE BUSINESS WE'VE HAD A LOT OF TROUBLE MAKING THAT A BETTER BUSINESS MR SARNI ADMITS BUT BUILDING A NEW BUSINESS TAKES TIME PPG ENTERED THE FIELD THROUGH ACQUISITIONS BEGINNING IN 1986 AND HE DISPUTES TALK THAT PPG HAS DEVELOPED FEW TECHNOLOGICAL ADVANCES CITING A NEW BLOODGAS ANALYZER THAT HE SAYS IS SELLING WELL NOW MR SARNI SAYS HE IS OPEN TO TAKING ANOTHER CHIEF EXECUTIVE'S SPOT POSSIBLY MAKING A MOVE LIKE HIS CLOSE FRIEND STANLEY C GAULT WHO BECAME GOODYEAR TIRE & RUBBER CO'S CHAIRMAN AFTER RETIRING FROM RUBBERMAID INC I'VE HAD A GOOD CAREER SO WHY NOT START ANOTHER ONE HE SAYS BUT HE ADDS I WISH I WERE STARTING AT THIS TIME AT PPG 9301220053 930122 POSSIBLE COLLAPSE IN OIL PRICES PREDICTED UNLESS OPEC TRIMS PRODUCTION SHARPLY BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE CENTER FOR GLOBAL ENERGY STUDIES PREDICTED A POSSIBLE COLLAPSE IN OIL PRICES UNLESS OPEC CUTS PRODUCTION SHARPLY THE BEARISH FORECAST FROM THE LONDONBASED ENERGY THINK TANK FOUNDED BY AHMED ZAKI YAMANI THE FORMER OIL MINISTER OF SAUDI ARABIA UNDERSCORES THE INDUSTRY'S GROWING CONCERN OVER THE CONTINUING DETERIORATION IN WORLD OIL MARKETS BUT THE CENTER'S POSITION APPEARS TO CLASH WITH INDUSTRY PROJECTIONS OF AN UPTURN IN PETROLEUM DEMAND THIS YEAR THE INTERNATIONAL ENERGY AGENCY HAS ESTIMATED 1993 WORLD OIL DEMAND WILL BE UP 1 TO 676 MILLION BARRELS A DAY GENERAL OIL MARKET PERCEPTIONS ARE THAT THIS HIGHER DEMAND COMBINED WITH ANTICIPATED OPEC PRODUCTION CUTS WILL BE SUFFICIENT TO FIRM PRICES THE CENTER QUESTIONED HOWEVER WHETHER THE OUTPUT CUTS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WILL BE ENOUGH AND IT CITED OPEC OVERSUPPLY RATHER THAN WEAK DEMAND AS HAVING CREATED THE CONDITIONS FOR A POTENTIAL PRICE COLLAPSE TO AVOID A COLLAPSE IT CONCLUDED OPEC NOT ONLY NEEDS TO REDUCE FIRSTQUARTER PRODUCTION IN LINE WITH ITS NOVEMBER AGREEMENT BUT ALSO MAKE FURTHER CUTS IN THE SECOND QUARTER BUT IT ADDED THIS MAY ONLY BE ACHIEVABLE IF THE LARGER PRODUCERS POSSIBLY INCLUDING KUWAIT ACT COLLECTIVELY AS SWING PRODUCERS ALTHOUGH OIL PRICES GENERALLY HAVE FALLEN AROUND 3 A BARREL SINCE MIDOCTOBER THEY REBOUNDED YESTERDAY IN TECHNICALLY DRIVEN TRADING AND IN REACTION TO REPORTS THAT A US PLANE HAD FIRED ON AN AIR DEFENSE RADAR SITE IN IRAQ LIGHT LOWSULFUR CRUDE OIL FOR MARCH DELIVERY INCREASED 31 CENTS TO SETTLE AT 1881 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE IN LONDON FUTURES TRADING THE MARCH BRENT BLEND CRUDE SURGED 45 CENTS TO 1742 IN NOVEMBER OPEC'S OIL MINISTERS AGREED TO A FIRSTQUARTER PRODUCTION CEILING OF ABOUT 246 MILLION BARRELS A DAY WITH THE UNDERSTANDING THAT THOSE ABLE TO DO SO WOULD BEGIN THE CUTS IN DECEMBER BUT OPEC'S PRODUCTION ROSE IN DECEMBER EXCLUDING 320000 BARRELS A DAY FROM ECUADOR WHICH LEFT THE ORGANIZATION DEC 31 OPEC PRODUCED AROUND 25 MILLION BARRELS A DAY IN DECEMBER ACCORDING TO MOST MONITORS OF ITS OUTPUT IT MUST LOSE SOME 400000 BARRELS A DAY TO GET IN LINE WITH ITS NEW 246 MILLION FIRSTQUARTER CEILING SAID PLATT'S WEEK AN OIL INDUSTRY PUBLICATION OPEC'S LEADING PRODUCERS IRAN AND SAUDI ARABIA ARE IN THE PERSIAN GULF REGION ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT LEFT CARACAS YESTERDAY FOR THE PERSIAN GULF TO BEGIN AN EIGHTDAY VISIT WITH OTHER OPEC MEMBERS TO DISCUSS PRODUCTION CUTS THE OIL MINISTERS ARE SCHEDULED TO MEET NEXT MONTH IN VIENNA TO REVIEW PRODUCTION LEVELS AND MR PARRA IS SEEKING A CONSENSUS ON OUTPUT LEVELS BEFORE THE MEETING BEGINS ACCORDING TO THE CENTER FOR GLOBAL ENERGY STUDIES IT IS ALREADY TOO LATE TO PREVENT PRICES FROM SLIDING FURTHER IN THIS QUARTER THE CUTS ARE REALLY NEEDED TO FORESTALL A PRICE COLLAPSE IN THE SECOND QUARTER THE CENTER SAID BUT THE CENTER QUESTIONED WHETHER THE MINISTERS CAN ARRIVE AT A CREDIBLE PRODUCTION AGREEMENT THAT WILL ENABLE THEM TO REDUCE OUTPUT AS REQUIRED DURING THE FIRST HALF ALTHOUGH OPEC MEMBERS CONTINUE TO PAY LIPSERVICE TO THE NOVEMBER AGREEMENT THE RECENT LARGE PRICE REDUCTIONS BY IRAN SAUDI ARABIA AND NIGERIA SUGGEST THAT THE KEY PRODUCERS ARE DETERMINED TO MAINTAIN THEIR SHARES THE CENTER SAID 9301220052 930122 WHAT'S NEWS BUSINESS AND FINANCE BRITISH AIRWAYS BOUGHT A 199 VOTING STAKE IN USAIR FOR 300 MILLION IN A SCALEDBACK VERSION OF AN ALLIANCE THE COMPANIES SCRAPPED LAST MONTH BUT AMR'S AMERICAN AIRLINES AND UAL'S UNITED SAID THEY OPPOSE THIS ACCORD TOO GIVING THE CLINTON ADMINISTRATION A DISPUTE TO RESOLVE ECONOMIC CONDITIONS CONTINUE TO IMPROVE ACROSS MUCH OF THE COUNTRY A FED SURVEY FOUND THE GAINS HAVEN'T RESULTED IN MUCH JOB GROWTH BUT ALSO HAVEN'T CAUSED PRICES TO JUMP BUT CALIFORNIA REMAINS A WEAK SPOT FORD IS RAISING PRICES ON MOST OF ITS 1993 MODELS IN AN UNUSUAL STEP FOR THE MIDDLE OF A MODEL YEAR THE INCREASES COME AS FORD GAINS MARKET SHARE IN THE US BUT CONTINUES TO LOSE MONEY GENERAL MOTORS STOCK CLIMBED 125 TO 3750 ON THE PROSPECT THAT THE CAR MAKER WILL POST BETTERTHANEXPECTED RESULTS FOR THE FOURTH QUARTER CLINTON IS EXPECTED TO NAME A LAWYER WHO HANDLED A MAJOR SUIT AGAINST CORPORATE RACIAL DISCRIMINATION TO THE LABOR DEPARTMENT'S TOP LEGAL POST THE CHOICE TROUBLES BUSINESS GROUPS BANK RULES ARE THE TARGET OF A PLANNED REVIEW BY CLINTON OFFICIALS AS PART OF A BID TO REMOVE IMPEDIMENTS TO LENDING ESPECIALLY TO SMALL BUSINESS STOCK AND BOND PRICES GAINED THE DOW JONES INDUSTRIALS ROSE 1107 POINTS NASDAQ STOCKS SET A RECORD THE 30YEAR TREASURY BOND'S YIELD ENDED AT 7295 A FOURMONTH LOW CALIFORNIA'S BIG PENSION FUND HAS BEGUN BYPASSING CEOS AT SOME COMPANIES AND MEETING WITH INDEPENDENT DIRECTORS AS IT PRESSES ITS EFFORT FOR MORE SAY IN HOW TO RUN COMPANIES IT INVESTS IN AN INTERNAL REPORT SHOWS LTV IS MOVING TO RAISE STEEL PRICES NEXT QUARTER BY 4 TO 5 REFLECTING EXPECTATIONS FOR GREATER DEMAND AND FOR US TARIFFS ON FOREIGN STEEL OTHER STEELMAKERS ARE STUDYING THE MOVE TIME WARNER NAMED ITS CEO GERALD LEVIN TO THE ADDITIONAL POST OF CHAIRMAN CONSOLIDATING HIS POWER IN THE WAKE OF THE DEATH OF STEVEN ROSS LEVIN'S PREDECESSOR AS CHAIRMAN DELL COMPUTER SAID IT WILL SELL SIX TYPES OF HIGHEND PERSONAL COMPUTERS IN JAPAN AT PRICES 25 TO 60 LOWER THAN THE LIST PRICES OF RIVAL MODELS THE US COMPANY'S PLAN FOR MAILORDER SALES ESCALATES JAPAN'S PC PRICE WAR COMPUTER ASSOCIATES POSTED A 48 INCREASE IN PROFIT FOR THE LATEST QUARTER THE SOFTWARE COMPANY'S STOCK SURGED 425 OR 20 TO 2525 SEMATECH SAID IT DEVELOPED COMPUTER CHIPS WITH CIRCUITS HALF THE SIZE OF THOSE ON STATEOFTHEART CHIPS SHORT INTEREST DROPPED 78 ON THE BIG BOARD IN THE LATEST MONTHLY PERIOD AND DECLINED 37 ON THE AMEX OLYMPIA & YORK'S PAUL REICHMANN IS TRYING TO RAISE AS MUCH AS 300 MILLION FOR A FUND THAT WOULD INVEST IN REAL ESTATE IN NORTH AMERICA AND ABROAD PEOPLE FAMILIAR WITH THE EFFORT SAY MCDONNELL DOUGLAS'S FOURTHQUARTER PROFIT JUMPED DUE TO ACCOUNTING GAINS THAT MASKED WEAK OPERATIONS BUT THE COMPANY WAS UPBEAT ABOUT 1993 ITS STOCK SURGED 250 TO 5650 WANG LABS CHAIRMAN RICHARD MILLER QUIT THE COMPUTER MAKER WHICH IS CLOSE TO EMERGING FROM CHAPTER 11 REGIONAL BANKS FLEET FINANCIAL SHAWMUT AND PNC REPORTED GAINS IN FOURTHQUARTER EARNINGS REFLECTING OVERALL IMPROVEMENT IN THE INDUSTRY OIL PRICES COULD COLLAPSE UNLESS OPEC CUTS OUTPUT SHARPLY ACCORDING TO A FORECAST BY A THINK TANK FOUNDED BY A FORMER SAUDI OIL MINISTER IBM'S FINANCE SUBSIDIARY POSTED A 95 GAIN IN EARNINGS FOR 1992 BUT ANALYSTS SAID THE RESULTS OFFERED MORE EVIDENCE OF IBM'S WEAKNESS OVERSEAS AND IN THE PERSONALCOMPUTER MARKET CANADIAN CONSUMER PRICES ROSE 15 IN 1992 FROM THE YEAR BEFORE MARKING THE SMALLEST GAIN IN 30 YEARS AND EASILY MEETING THE BANK OF CANADA'S INFLATIONREDUCTION GOALS BONDS LEHMAN BROTHERS TREASURY INDEX 476362 UP 1460 COMMODITIES OIL 1881 UP 31 CENTS DOW JONES FUTURES INDEX 12170 OFF 044 SPOT INDEX 12423 UP 018 DOLLAR 12480 YEN UP 012 16138 MARKS UP 00108 9301220051 930122 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON PUSHES FOR A FAST START TO GET HIS AGENDA MOVING IN CONGRESS PRIVATE CALLS TO HOUSE SPEAKER FOLEY AND WAYS AND MEANS CHAIRMAN ROSTENKOWSKI ARE INSTRUMENTAL IN GETTING THE PRESIDENT'S ALLY LOUISIANA REP JEFFERSON ON ROSTENKOWSKI'S COMMITTEE CLINTON WOOS POWERFUL REP DINGELL BY MAKING DINGELL'S CLOSE AIDE CONSUELA WASHINGTON THE FRONTRUNNER TO BE SEC CHAIRMAN HE COURTS SEN KENNEDY BY PUTTING THREE FORMER KENNEDY AIDES IN WHITE HOUSE JOBS TO MOVE LEGISLATION QUICKLY CLINTON GIVES PUBLICLIAISON CHIEF ALEXIS HERMAN AUTHORITY TO MOBILIZE GRASSROOTS SUPPORT FOR HIS ECONOMIC AND HEALTH PLANS TO BLUNT COMPLAINTS ABOUT VACANCIES CLINTON PLANS TO MAKE ABOUT 600 60DAY APPOINTMENTS TO IMPORTANT JOBS HE WILL STRING OUT EXECUTIVE ORDERS OVER SEVERAL DAYS INCLUDING ONE PROBABLY TODAY ENDING THE GAG RULE ON ABORTION COUNSELING BUT TROUBLE BREWS WITH UNIONS NOT A SINGLE PERSON RECOMMENDED FOR HIGH JOBS IN A LIST GIVEN TO LABOR SECRETARY REICH BY THE AFLCIO HAS BEEN CHOSEN CLINTONITES AND CONGRESS PROD THE FED FOR MORE HELP ON THE ECONOMY FEDERAL RESERVE CHIEF GREENSPAN NOTING THE STRENGTHENING ECONOMY RESISTS CALLS TO INCREASE MONEYSUPPLY GROWTH SAYING IT ISN'T THE CRUCIAL FACTOR NOW BUT SOME OTHER FED OFFICIALS DISAGREE NEW TREASURY SECRETARY BENTSEN AND BUDGET CHIEF PANETTA URGE THE FED'S COOPERATION GREENSPAN FACES SENATE CRITICS AT HEARINGS NEXT WEEK ANY MOVE BY THE FED TO RAISE INTEREST RATES WOULD FUEL CRITICISM OF THE CENTRAL BANK ALREADY HOUSE BANKING CHAIRMAN GONZALEZ PLANS HEARINGS ON HIS BILL TO GIVE THE WHITE HOUSE AND CONGRESS CONTROL OVER APPOINTMENT OF FED BANK PRESIDENTS BUT CLINTON OPPOSES TAMPERING WITH FED INDEPENDENCE IN AN EARLY MEETING HE AND GREENSPAN SHOWED MUTUAL RESPECT WHICH WILL HELP RELATIONS IRAQ THREATENS TO DOMINATE CLINTON'S EARLY FOREIGNPOLICY AGENDA AFTER AN INITIAL LULL OFFICIALS EXPECT SADDAM HUSSEIN TO TEST THE NEW PRESIDENT WITH FRESH VIOLATIONS OF UN RESOLUTIONS THE ADMINISTRATION USES YESTERDAY'S FIRING BY A US JET AT IRAQI GROUND RADAR TO UNDERSCORE ITS RESOLVE THE GOAL IS TO DEMONSTRATE WE WILL ENFORCE THE NOFLY ZONES OVER IRAQ SAYS A SENIOR OFFICIAL IF VIOLATIONS COME JOINT CHIEFS CHAIRMAN POWELL IS EXPECTED TO FAVOR DECISIVE ACTION BUT CLINTON'S MANEUVERING ROOM IS LIMITED BUSH HAS ALREADY HIT THE RELATIVELY EASY IRAQI TARGETS CLINTON WOULD HAVE TO GO AFTER TARGETS IN BAGHDAD OR AIRFIELDS OUTSIDE THE NOFLY ZONES SECRETARY OF STATE CHRISTOPHER LIKELY WILL GO TO THE MIDEAST SOON PARTLY TO DISCUSS SADDAM HUSSEIN WITH EGYPT AND SYRIA JESSE JACKSON PRESSES CHRISTOPHER TO DROP THE POLICY OF SENDING HAITIAN BOAT PEOPLE BACK WITHOUT FIRST DECIDING IF THEY ARE FLEEING POLITICAL PERSECUTION ADMINISTRATION OFFICIALS WORRY THAT JACKSON'S TRIP TO HAITI TODAY WILL FOCUS ATTENTION ON THE REFUGEE PROBLEM AND EMBARRASS CLINTON DEMOCRATS WORRY THEY MAY LOSE DEFENSE SECRETARY ASPIN'S HOUSE SEAT IN WISCONSIN TO GOP MILLIONAIRE MARK NEUMANN WHO GOT 42 OF THE VOTE AGAINST ASPIN LAST FALL AGRICULTURE CHIEF ESPY'S MISSISSIPPI SEAT SHOULD BE SAFE BUT UP TO 20 DEMOCRATIC CANDIDATES COULD SPLIT THE VOTE TO THE GOP'S ADVANTAGE DEMOCRATS EXPECT TO KEEP BUDGET CHIEF PANETTA'S CALIFORNIA SEAT GRAND DEAL NEW TRADE REPRESENTATIVE KANTOR HINTS THAT CLINTON MAY PRESS EUROPE TO WRAP UP STEEL DISPUTES AND GATT NEGOTIATIONS IN ONE BIG PACKAGE THEY ALL CONNECT HE SAYS MORE PRESSURE IS LIKELY TUESDAY WHEN THE COMMERCE DEPARTMENT IS EXPECTED TO PROPOSE HEAVY DUMPING DUTIES ON FOREIGN STEEL CUOMO JOB ANDREW CUOMO THE NEW YORK GOVERNOR'S SON WAS CONSIDERED FOR THE FEDERAL HOUSING COMMISSIONER'S POST TWO OTHERS ARE NOW OUT OF THE RUNNING BUT HE STILL WON'T GET IT HE APPEARS HEADED TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AS AN ASSISTANT SECRETARY FOR COMMUNITY DEVELOPMENT CONGRESS MOVES SLOWLY ON STICKY ETHICS ISSUES THE INVESTIGATION OF SEXUAL HARASSMENT CHARGES AGAINST SEN PACKWOOD IS DELAYED AS SENATORS SHUN THE DECIMATED ETHICS COMMITTEE SOME PACKWOOD ACCUSERS POSTPONE DEPOSITIONS UNTIL THEY SEE WHO WILL BE ON THE PANEL SEN BARBARA MIKULSKI MAY AGREE TO BE CHAIRWOMAN BUT MAJORITY LEADER MITCHELL HASN'T ANNOUNCED A NEW LINEUP YET SENATE AND HOUSE INCUMBENTS ARE RELUCTANT TO PRESS CAMPAIGNFINANCE REFORM UNTIL AFTER THE 1994 ELECTIONS CLINTON WILL HAVE TO MOVE QUICKLY TO GET A STRONG BILL FEDERAL INVESTIGATION OF WAYS AND MEANS COMMITTEE HEAD ROSTENKOWSKI CLOUDS TAXLEGISLATION PROSPECTS IF HE IS INDICTED FLORIDA REP GIBBONS CONSIDERED FAR LESS EFFECTIVE WOULD BECOME ACTING CHAIRMAN LAWMAKERS PRODDED BY COMPLAINTS ON RADIO TALK SHOWS PRESS CLINTON ATTORNEY GENERAL NOMINEE BAIRD ON HER HOUSEHOLD HIRING BUT TRADE REPRESENTATIVE KANTOR A LOBBYIST GETS OFF EASY MINOR MEMOS OVERHEARD AT THE NEW REPUBLIC'S INAUGURATION PARTY DIDN'T WE MEET AT OXFORD THE COMEDY GROUP GROSS NATIONAL PRODUCT SPOOFS CLINTON AND HIS SPOTTED AL BEFORE TAKING HIS NEW JOB AS DEPUTY WHITE HOUSE COMMUNICATIONS DIRECTOR FORMER CONGRESSIONAL AIDE DAVID DREYER CLIPS HIS TRADEMARK PONYTAIL 9301220050 930122 BUSINESS BRIEF ANCHOR BANCORP INC SHARES RISE 19 ON PROFIT CAPITAL COMPLIANCE REPORTS SHARES OF ANCHOR BANCORP INC JUMPED NEARLY 19 AFTER THE SAVINGS AND LOAN REPORTED HIGHER EARNINGS AND SAID ADOPTION OF NEW ACCOUNTING STANDARDS PUT IT IN COMPLIANCE WITH FEDERAL CAPITAL ADEQUACY STANDARDS THE HEWLETT NY THRIFT'S ADOPTION OF FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT 109 ACCOUNTING FOR INCOME TAXES CREATED 281 MILLION IN NET DEFERRED TAX ASSETS LATE LAST MONTH ACCORDING TO ANCHOR FEDERAL REGULATORS SAID SUCH ASSETS COULD BE INCLUDED FOR REGULATORY CAPITAL PURPOSES ANCHOR SAID THE CHANGE WOULD PUT IT OVER THE 4 LEVERAGE CAPITAL TEST HOWEVER ANCHOR WILL AGAIN FALL BELOW THAT LEVEL THIS MONTH BECAUSE OF THE PHASEOUT OF CERTAIN GOODWILL ITEMS IT EXPECTS TO EXCEED THE 4 REQUIREMENT BY MARCH 31 ANCHOR SAID NET INCOME FOR THE FISCAL SECOND QUARTER ENDED DEC 31 ROSE TO 166 MILLION OR 76 CENTS A SHARE FROM 9 MILLION OR 33 CENTS A SHARE 9301220049 930122 CORRECTIONS & AMPLIFICATIONS SETH LAPIDOW AN ASSOCIATE WITH SHEARMAN & STERLING IS AN OUTSIDE COUNSEL FOR KPMG PEAT MARWICK IN A MALPRACTICE LAWSUIT FILED AGAINST PEAT INVOLVING ITS AUDIT OF DEFUNCT CRAZY EDDIE INC MR LAPIDOW'S NAME WAS SPELLED INCORRECTLY IN YESTERDAY'S LEGAL BEAT COLUMN FIRST REPUBLIC BANCORP INC SAN FRANCISCO ISN'T RELATED TO FIRST REPUBLICBANK CORP DALLAS A BANK HOLDING COMPANY THAT WAS THE SUBJECT OF AN ARTICLE YESTERDAY CONCERNING THE TENTATIVE SETTLEMENT OF A LAWSUIT FILED BY THE FEDERAL DEPOSIT INSURANCE CORP DRUG EMPORIUM INC FIRED ONE CHIEF FINANCIAL OFFICER IN AUGUST 1991 WHILE A SECOND CHIEF FINANCIAL OFFICER STEPHEN R POHLIT RESIGNED VOLUNTARILY LAST NOVEMBER AN ARTICLE JAN 13 INCORRECTLY STATED THAT DRUG EMPORIUM FIRED TWO CHIEF FINANCIAL OFFICERS IN THE PAST 18 MONTHS 9301220048 930122 BUSINESS BRIEF LASERMEDICS INC FIRM ISSUES 123400 UNITS FOR INITIAL PUBLIC OFFERING LASERMEDICS INC SAID IT ISSUED 123400 UNITS AT 6 EACH FOR ITS INITIAL PUBLIC OFFERING THE UNITS CONSIST OF ONE SHARE OF COMMON STOCK AND TWO WARRANTS A AND B WHICH ENTITLE THE HOLDER TO BUY ONE ADDITIONAL SHARE PER WARRANT AT 750 AND 10 RESPECTIVELY THE STAFFORD TEXAS MEDICALPRODUCTS COMPANY SAID IT WILL BEGIN PLANS TO MARKET NATIONALLY ITS NEW MICROLIGHT 830 LASER THE LASER IS A NONTHERMAL OR COLD LASER THAT IS USED TO REDUCE INFLAMMATION AND REPAIR CELL AND TISSUE DAMAGE CAUSED FROM REPETITIVE STRESS INJURIES SUCH AS CARPAL TUNNEL SYNDROME A SPOKESMAN SAID THE METHOD IS NONSURGICAL HE ADDED THE COMPANY EXPECTS TO RECEIVE FULL MARKETING APPROVAL FROM THE US FOOD AND DRUG ADMINISTRATION BY AUGUST CURRENTLY THE DEVICE IS BEING TESTED AT THE MAYO CLINIC AND AT GENERAL MOTORS CORP IN A DOUBLEBLIND CLINICAL STUDY A COMPANY SPOKESMAN SAID LASERMEDICS' INITIAL PUBLIC OFFERING WAS APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION ON SEPT 14 9301220047 930122 JACK IN THE BOX ILLNESSES TIED TO UNDERCOOKING BEEF CONTAMINATION OLYMPIA WASH CONTAMINATED BEEF THAT WASN'T COOKED TO A HIGH ENOUGH TEMPERATURE APPEARS TO HAVE CAUSED SERIOUS ILLNESS IN AT LEAST 75 PEOPLE WHO WERE SERVED THE MEAT BY VARIOUS JACK IN THE BOX RESTAURANTS IN THE WASHINGTON STATE FOODMAKER INC OWNER OF THE FASTFOOD CHAIN SAID PRELIMINARY STATE HEALTH DEPARTMENT TESTS SHOWED THAT IT RECEIVED CONTAMINATED BEEF FROM A SUPPLIER FOODMAKER SAID JACK IN THE BOX HAS REPLACED ALL HAMBURGER MEAT IN ITS WASHINGTON RESTAURANTS AND INCREASED THE COOKING TIME THOSE TESTS AREN'T FINISHED YET AND I DON'T WANT TO COMMENT ON THEM SAID A HEALTH DEPARTMENT SPOKESMAN HE SAID HE EXPECTED THE TEST RESULTS TO BE RELEASED TODAY MOST LIKELY PROBLEMATIC BEEF AND UNDERCOOKING WERE TO BLAME IT WAS A COMBINATION OF BOTH MATTERS HE SAID LATE LAST WEEK THE HEALTH DEPARTMENT BEGAN RECEIVING REPORTS THAT SOME CUSTOMERS OF JACK IN THE BOX HAD BECOME SERIOUSLY ILL AND WERE HOSPITALIZED AFTER EATING IN THE RESTAURANTS SEVERE COMPLICATIONS INCLUDING KIDNEY PROBLEMS OCCURRED IN SEVERAL PEOPLE AT LEAST SEVEN CHILDREN HAVE REQUIRED KIDNEY DIALYSIS TREATMENT FOODMAKER BASED IN SAN DIEGO SAID THE SOURCE OF THE CONTAMINATED HAMBURGER WAS VONS COS A LARGE SOUTHERN CALIFORNIA SUPERMARKET CHAIN VONS SAID THAT WHEN THE MEAT LEFT ITS PROCESSING FACILITY IT WASN'T CONTAMINATED 9301220046 930122 POLITICS & POLICY PROSECUTOR'S MOVE DISABLES COMPUTERS AT WHITE HOUSE BY JEFFREY H BIRNBAUM AND BARBARA ROSEWICZ STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON IN RESPONSE TO A SUBPOENA FROM A SPECIAL PROSECUTOR THE DATA STORAGE DEVICES OF COMPUTERS THROUGHOUT THE WHITE HOUSE WERE REMOVED IN THE CLOSING DAYS OF THE BUSH ADMINISTRATION THE ACTION THREW PRESIDENT CLINTON'S STAFF INTO EVEN MORE TURMOIL THAN IS USUAL FOR A FIRST DAY ON THE JOB THE SOCALLED HARD DISK DRIVES WERE TAKEN TO SATISFY A SUBPOENA ISSUED LAST WEEK BY INDEPENDENT COUNSEL JOSEPH DIGENOVA WHO HAS BEEN APPOINTED TO INVESTIGATE THE BUSH ADMINISTRATION'S SEARCH OF MR CLINTON'S PASSPORT FILE ACCORDING TO OFFICIALS OF THE BUSH AND CLINTON ADMINISTRATIONS THE DISK DRIVES NOW ARE IN THE POSSESSION OF THE FEDERAL BUREAU OF INVESTIGATION BUSH ADMINISTRATION AIDES SAID AS A RESULT CLINTON STAFFERS ARRIVED AT THEIR NEW OFFICES ONLY TO FIND GAPING HOLES IN COMPUTERS EVERYWHERE IN THE WHITE HOUSE COMPLEX WHICH INCLUDES BOTH THE WHITE HOUSE ITSELF AND THE NEARBY OLD EXECUTIVE OFFICE BUILDING THAT CRIPPLED THE COMPUTERS THE OFFICIALS WERE COUNTING ON USING MR DIGENOVA'S GOAL WAS TO PREVENT ERASURE OF DATA THAT MIGHT RELATE TO HIS INVESTIGATIONS OF THE BUSH ADMINISTRATION'S SEARCH OF MR CLINTON'S PASSPORT FILE IN THE CLOSING STAGES OF THE 1992 PRESIDENTIAL CAMPAIGN MR DIGENOVA COULDN'T BE REACHED FOR COMMENT BUT DEPARTING BUSH ADMINISTRATION OFFICIALS SAID THE COMPUTER DEVICES WERE REMOVED AS THE RESULT OF A LASTMINUTE COMPROMISE BETWEEN THE PROSECUTOR AND THE BUSH WHITE HOUSE WHICH DIDN'T HAVE TIME TO SIFT THROUGH THE MEMORY BANKS TO RESPOND SELECTIVELY TO THE SUBPOENA WITHOUT FULL USE OF THE COMPUTERS CLINTON STAFFERS STRUGGLED TO ACCOMPLISH EVEN THE SIMPLEST TASKS ONE AIDE CLAIMED TO HAVE TO RESORT TO PENCIL AND PAPER TO COMMUNICATE EXPRESSIONS OF DISMAY AND FRUSTRATION FILLED THE HALLS OF THE WHITE HOUSE COMPLEX ALL DAY WHAT'S MORE REPLACING THE DEVICES IS EXPECTED TO COST THE GOVERNMENT AN ESTIMATED 200000 STILL DEE DEE MYERS MR CLINTON'S PRESS SECRETARY SAID WE DON'T SEE THIS AS A BIG PROBLEM IT IS A TEMPORARY INCONVENIENCE SHE ADDED I'M SURE IT WILL GET RESOLVED BUT I DON'T KNOW HOW LONG IT WILL TAKE NOT EVERY WHITE HOUSE OFFICE WAS LEFT WITHOUT FULLY WORKABLE COMPUTERS THE COMPUTERS OF THE NATIONAL SECURITY COUNCIL STAFF HAD NEW HARD DRIVES SO THEY COULD FUNCTION NORMALLY OFFICIALS THERE SAID THE CLINTON AIDES HAD OTHER ADJUSTMENT DIFFICULTIES AS WELL THE WHITE HOUSE SWITCHBOARD WAS JAMMED ALL DAY WITH CALLS OPPOSING THE NOMINATION OF ZOE BAIRD AS ATTORNEY GENERAL MAKING IT NEARLY IMPOSSIBLE FOR EVEN TOP CONGRESSIONAL OFFICERS TO CONTACT WHITE HOUSE DECISION MAKERS AND MS MYERS DIDN'T EVEN HAVE A PHONE TO WHICH CALLS COULD BE SWITCHED DIRECTLY MAKING HER JOB ESPECIALLY CUMBERSOME BUT CLEARLY THE WORST PROBLEM WAS THE COMPUTERS THAT CRISIS BEGAN JAN 15 WHEN MR DIGENOVA PRESENTED HIS REQUEST FOR COMPUTER INFORMATION RELATED TO THE PASSPORT INVESTIGATION BUSH ADMINISTRATION AIDES DETERMINED THAT THE REQUEST CAME SO LATE THAT THEY WOULDN'T HAVE TIME TO SEARCH THE CONTENTS OF EACH DISK DRIVE FOR RELEVANT INFORMATION BEFORE THE ADMINISTRATION LEFT OFFICE THAT LED TO THE COMPROMISE OF REMOVING THE DISK DRIVES SO THEY COULD BE SEARCHED LATER FOR RELEVANT DATA OFFICIALS SAID THE AGREEMENT OVER THE DISK DRIVES WASN'T DIRECTLY RELATED TO A CASE BEING HEARD BY FEDERAL JUDGE CHARLES RICHEY WHO LAST WEEK EXPRESSED CONCERN THAT THE BUSH WHITE HOUSE WOULD DESTROY INFORMATION CONTAINED IN ITS COMPUTER SYSTEM THE CONCERN IN THAT CASE WAS THAT INVESTIGATORS LOOKING INTO THE IRANCONTRA AFFAIR WOULD BE DEPRIVED OF A CHANCE TO REVIEW DATA BUT THAT INFORMATION IS CONTAINED IN A CENTRALIZED COMPUTER NETWORK SYSTEM THE CONTENTS OF WHICH BUSH ADMINISTRATION OFFICIALS SAY HAVE BEEN PRESERVED ELECTRONICALLY OR ON PAPER AND SENT TO FEDERAL ARCHIVES GERALD F SEIB CONTRIBUTED TO THIS ARTICLE 9301220045 930122 BUSINESS BRIEF BOWATER INC PAPER FIRM POSTS DEFICITS AMID DROP IN PULP PRICES BOWATER INC REPORTED LOSSES FOR THE FOURTH QUARTER AND YEAR WIDER THAN INDUSTRY ANALYSTS EXPECTED AS PULP PRICES CONTINUE TO DETERIORATE THE DARIEN CONN PAPER PULP AND NEWSPRINT MAKER HAD A QUARTERLY LOSS OF 209 MILLION OR 59 CENTS A SHARE COMPARED WITH NET INCOME OF 16 MILLION OR TWO CENTS A SHARE IN THE 1991 QUARTER SALES ROSE 22 TO 3989 MILLION 1992 RESULTS INCLUDE OPERATIONS OF GREAT NORTHERN PAPER INC WHICH BOWATER ACQUIRED FROM GEORGIAPACIFIC CORP IN LATE 1991 BOWATER PREVIOUSLY HAD SAID IT THOUGHT ANALYSTS' ESTIMATES OF A LOSS OF 4045 CENTS A SHARE WERE REASONABLE BUT WARNED THE RESULTS COULD BE WORSE BECAUSE OF RECENT DECLINES IN NEWSPRINT PRICES FOR THE YEAR THE LOSS WAS 82 MILLION OR 234 A SHARE AGAINST 1991 NET OF 456 MILLION OR 115 A SHARE SALES ROSE 16 TO 149 BILLION BOWATER INC'S FOURTHQUARTER LOSS WAS WIDER THAN EXPECTED BECAUSE OF RECENT DECREASES IN PULP PRICES AN ARTICLE FRIDAY INCORRECTLY SAID THE RECENT PRICE DECREASES WERE IN NEWSPRINT 9301220044 930122 BUSINESS BRIEF ADVO INC DIRECTMAIL FIRM DECLARES STOCK SPLIT SETS DIVIDEND ADVO INC DECLARED A 5FOR4 STOCK SPLIT IN THE FORM OF A 25 STOCK DIVIDEND AND SAID IT WILL PAY A DIVIDEND OF TWO CENTS A SHARE ON A QUARTERLY BASIS AFTER THE SPLIT THE WINDSOR CONN DIRECTMAIL COMPANY WHICH IS NOW TRADED IN THE OVERTHECOUNTER MARKET PLANS TO CONVERT ITS PREFERRED STOCK TO COMMON AND WILL FILE FOR LISTING ON THE NEW YORK STOCK EXCHANGE ADVO ALSO SAID IT WILL INITIATE A STOCKHOLDERS' RIGHTS PLAN EFFECTIVE FEB 5 SEPARATELY ADVO REPORTED NET INCOME FOR THE FIRST QUARTER ENDED DEC 26 OF 56 MILLION OR 31 CENTS A SHARE ON REVENUE OF 2144 MILLION COMPARED WITH YEARAGO NET OF 48 MILLION OR 26 CENTS A SHARE ON REVENUE OF 1866 MILLION THE STOCK SPLIT WILL BE PAID MARCH 12 TO SHAREHOLDERS OF RECORD FEB 15 THE QUARTERLY DIVIDEND WILL BEGIN AFTER THE STOCK SPLIT WITH A RECORD DATE OF MARCH 12 THE COMPANY SAID THE RIGHTS PLAN WHICH IS MEANT TO DETER ABUSIVE TAKEOVER TACTICS ISN'T A RESPONSE TO A TAKEOVER PROPOSAL BY AN OUTSIDE PARTY 9301220043 930122 BUSINESS BRIEF STUDENT LOAN CORP PROFIT MORE THAN DOUBLED IN 4TH PERIOD TO 158 MILLION STUDENT LOAN CORP ROCHESTER NY SAID HEAVY LOAN VOLUME MORE THAN DOUBLED NET INCOME FOR THE FOURTH QUARTER AND IT SAID IT MIGHT BEGIN PAYING A DIVIDEND THE STUDENT LOAN ORIGINATOR AND SERVICER WHICH WENT PUBLIC LAST MONTH REPORTED NET OF 158 MILLION OR 79 CENTS A SHARE COMPARED WITH 77 MILLION OR 39 CENTS A SHARE IN THE YEAREARLIER PERIOD TOTAL INCOME WHICH IS INTEREST INCOME AND FEE INCOME LESS INTEREST EXPENSE ROSE 64 TO 346 MILLION THE COMPANY SAID IT INTENDS TO CONSIDER DECLARING A DIVIDEND ON ITS COMMON STOCK AT THE NEXT SCHEDULED BOARD MEETING IN APRIL STUDENT LOAN SAID LOW INTEREST RATES ALSO BOOSTED NET FOR THE QUARTER THE COMPANY WAS A WHOLLY OWNED UNIT OF CITIBANK CITICORP'S PRIMARY BANKING UNIT PRIOR TO SELLING A 20 STAKE IN DECEMBER IN AN INITIAL PUBLIC OFFERING FOR THE YEAR NET INCOME ROSE 96 TO 51 MILLION OR 255 A SHARE COMPARED WITH 26 MILLION OR 130 A SHARE IN 1991 TOTAL INCOME ROSE 53 TO 1169 MILLION 9301220042 930122 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP UNIT EXPECTS TO LAY OFF 500 DUE TO LOSS OF DEFENSE JOB WESTINGHOUSE ELECTRIC CORP'S ELECTRONIC SYSTEMS UNIT SAID IT WILL LIKELY LAY OFF AS MANY AS 500 EMPLOYEES BECAUSE OF THE LOSS OF A MAJOR DEFENSE CONTRACT IN A LETTER TO EMPLOYEES RICHARD LINDER PRESIDENT OF THE UNIT ATTRIBUTED THE LAYOFFS TO THE NAVY'S DECISION LAST MONTH TO CANCEL DEVELOPMENT OF THE AIRBORNE SELFPROTECTION JAMMER MR LINDER WROTE THAT THE UNIT LAUNCHED AN ALLOUT EFFORT TO REVERSE THE DECISION BUT THAT MOST AFFECTED EMPLOYEES WOULD BE NOTIFIED BY JAN 29 UNLESS THE LOBBYING EFFORT IS SUCCESSFUL A SPOKESMAN FOR THE UNIT OF THE PITTSBURGHBASED CONCERN SAID 450 OF THE LAYOFFS WOULD HIT THE BALTIMOREWASHINGTON INTERNATIONAL AIRPORT FACILITY WHILE 50 WOULD TAKE PLACE AT HUNT VALLEY MD THE JAMMER DESIGNED TO BE CARRIED BY F14 AND F/A18 FIGHTERS WAS TO DETECT AND JAM ENEMY RADARS THE NAVY SAID IT CANCELED THE CONTRACTS BECAUSE TESTING FOUND THE PROTOTYPES INEFFECTIVE BUT MR LINDER WROTE THAT THE NAVY CONCLUDED ONLY LAST FALL THAT THE SYSTEM HAD PERFORMED FLAWLESSLY 9301220041 930122 BUSINESS BRIEF VITESSE SEMICONDUCTOR CORP LOSS OF 65 MILLION IS POSTED FOR THE FISCAL FIRST QUARTER VITESSE SEMICONDUCTOR CORP REPORTING A LOSS FOR ITS FISCAL FIRST QUARTER SAID IT CUT ITS WORK FORCE BY 12 TO 275 THE CAMARILLO CALIF MAKER OF INTEGRATED CIRCUITS TOOK A 240000 CHARGE IN THE QUARTER ENDED DEC 31 FOR SEVERANCE AND OTHER COSTS ASSOCIATED WITH THE WORK FORCE CUT AFTER THE CHARGE VITESSE POSTED A NET LOSS FOR THE QUARTER OF 65 MILLION OR 44 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 268000 OR 1 CENT A SHARE VITESSE SAID IT MADE THE CUT IN ITS WORK FORCE TO REDUCE ITS COST BASE GIVEN LOWERTHANEXPECTED PRODUCTION VOLUMES THE COMPANY ALSO SAID IT EXPECTS SECONDQUARTER REVENUES WILL BE SIGNIFICANTLY BELOW THE 96 MILLION IN THE SAME QUARTER OF THE PRIOR YEAR AND THAT WE WILL REPORT A SUBSTANTIAL LOSS 9301220040 930122 BUSINESS BRIEF MARTIN MARIETTA CORP AEROSPACE FIRM REPORTS NET ROSE 72 IN FOURTH QUARTER MARTIN MARIETTA CORP POSTED FOURTHQUARTER NET INCOME OF 757 MILLION OR 161 A SHARE UP 72 FROM 44 MILLION OR 89 CENTS A SHARE A YEAR EARLIER SALES IN THE LATEST QUARTER SAGGED 13 TO 145 BILLION FROM 167 BILLION A YEAR EARLIER RESULTS FOR THE 1991 FOURTH QUARTER INCLUDED AN AFTERTAX RESTRUCTURING CHARGE OF 39 MILLION OR 78 CENTS A SHARE FOR THE YEAR THE BETHESDA MD AEROSPACE COMPANY'S EARNINGS ROSE TO 3454 MILLION OR 721 A SHARE FROM 3131 MILLION OR 630 A SHARE A YEAR EARLIER SALES DROPPED TO 595 BILLION FROM 608 BILLION A YEAR EARLIER NORMAN R AUGUSTINE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY'S SALES TO THE DEFENSE DEPARTMENT DURING 1992 FELL ABOUT 9 BUT SALES TO CIVIL GOVERNMENT CUSTOMERS ROSE MORE THAN 20SURPASSING 1 BILLION INTERNATIONAL SALES WERE UP ALMOST 30 DURING THE YEAR AND COMMERCIAL SALES ROSE NEARLY 13 REFLECTING THE INITIAL RECOVERY IN OUR CONSTRUCTION MARKETS AND CONTINUED MARKET SHARE GAINS FOR JET ENGINE AND THRUST REVERSERS MR AUGUSTINE SAID 9301220039 930122 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITISH UNEMPLOYMENT AND MANUFACTURING OUTPUT WAS WORSE THAN EXPECTED INCREASING PRESSURE FOR A CUT IN BASE LENDING RATES THE DATA FOLLOWING REPORTS OF BEARISH RETAIL SALES IN DECEMBER CONFIRMED HOW SICK THE ECONOMY WAS LAST YEAR AND SIGNALED A FEEBLE RECOVERY LAST MONTH SEASONALLY ADJUSTED UNEMPLOYMENT JUMPED A STUNNING 60000 FROM A REVISED INCREASE OF 44900 IN NOVEMBER BOOSTING THE JOBLESS TOTAL TO MORE THAN 29 MILLION AND THE UNEMPLOYMENT RATE TO 105 FROM 103 THE GLOOMY REPORT COULD LEAD CONSUMERS TO BRAKE THEIR SPENDING THE MANUFACTURING SECTOR REMAINED DEEPLY DEPRESSED IN NOVEMBER WHEN OUTPUT FELL 05 FROM THE PREVIOUS MONTH AND 03 FROM A YEAR EARLIER THOUGH MANY ECONOMISTS BELIEVE PRODUCTION LEVELS HAVE REACHED THEIR BOTTOM THE ECONOMY HAS YET TO GAIN MOMENTUM FROM THE BRITISH CURRENCY'S SHARP DEVALUATION IN SEPTEMBER WHEN IT WAS DISCONNECTED FROM EUROPE'S EXCHANGERATE SYSTEM AND FROM SUBSEQUENT BASE LENDINGRATE CUTS TO 7 FROM 10 SWEDEN PLANS TO ACQUIRE AS MANY AS 1000 BATTERYDRIVEN CARS AND VANS IN THE FIRST STEP OF A PROJECT TO TEST AND PROMOTE ELECTRIC VEHICLES THE GOVERNMENT HAS CONTACTED MAJOR AUTO MAKERS WORLDWIDE ABOUT PARTICIPATING IN THE DEVELOPMENT OF AN ENERGYEFFICIENT ALTERNATIVE IN URBAN TRAFFIC BY 1995 SWEDEN IS FORMING A CONSORTIUM OF USERS RANGING FROM A FREIGHT COMPANY TO THE POST OFFICE THAT WILL AWARD A CONTRACT TO AN AUTO GROUP IT WILL CONSIDER A STATION WAGON AND A LIGHTDUTY VAN OR MINIBUS THAT MUST BE ABLE TO TRAVEL ABOUT 60 MILES BEFORE A RECHARGE BRAZIL'S GOVERNMENT SCORED A VICTORY IN ITS CAMPAIGN FOR TAX REFORM THAT COULD LOWER INFLATION RUNNING AT 25 A MONTH AND RAISE 7 BILLION A YEAR THE CHAMBER OF DEPUTIES PASSED THE FINANCIAL MOVEMENTS TAX PART OF A CONSTITUTIONAL AMENDMENT BEFORE CONGRESS THAT WOULD COLLECT A LEVY OF ONEQUARTER OF 1 OF EVERY CHECK WITHDRAWAL OF SAVINGS HELD LESS THAN THREE MONTHS AND OTHER BANK TRANSACTIONS THROUGH 1994 TO OVERCOME OPPOSITION THE GOVERNMENT AGREED TO SPEND 18 OF THE REVENUE ON EDUCATION FOR NEEDY CHILDREN AUSTRALIA CALLED FOR GLOBAL BIDS FOR TWO PAYTELEVISION LICENSES TO BE ISSUED BY MIDYEAR THE WINNERS EACH MAY PROVIDE AS MANY AS FOUR SATELLITE PAYTV CHANNELS A THIRD LICENSE FOR TWO CHANNELS WILL GO TO AUSTRALIAN BROADCASTING CORP A NATIONAL TV AND RADIO COMPANY OWNED BY THE STATE THE GOVERNMENT HAS SIGNALED IT WILL FAVOR LICENSE APPLICANTS THAT CAN DEMONSTRATE THEIR OPERATIONS WILL BENEFIT AUSTRALIAN INDUSTRIES SUCH AS TV PROGRAM PRODUCTION AND COMMUNICATIONS TECHNOLOGY AUSTRIA'S INDUSTRIAL SECTOR HAS WEAKENED SIGNIFICANTLY AND DOESN'T SHOW ANY SIGN OF A REBOUND THE WIFO THINK TANK IN VIENNA SAID THAT IN THE PAST YEAR AUSTRIAN INDUSTRY HAS SHED 20000 EMPLOYEES OR 4 OF ITS WORK FORCE ORDERS TO INDUSTRY ARE EXPECTED TO DROP FURTHER THIS YEAR AS DOMESTIC DEMAND TAILS OFF THE SECTOR ALSO IS SHORT OF VENTURE CAPITAL CURBING ADVANCES IN TECHNOLOGY YET WIFO SAID AUSTRIA REMAINS COMPETITIVE ECONOMICALLY BUT SHOULD MOVE QUICKLY TO JOIN THE EUROPEAN COMMUNITY WHICH COULD IMPROVE EXPORTS TO OFFSET THE FLAGGING DOMESTIC DEMAND FOREIGN INVESTMENT IN PHILIPPINE PARTNERSHIPS AND STOCK CORPORATIONS FELL 42 LAST YEAR TO 662 BILLION PESOS 2686 MILLION FROM A YEAR EARLIER OF THE TOTAL 54 CAME FROM INVESTORS IN ASIA 16 IN THE US AND 14 FROM EUROPE THE SLOWDOWN IN THE DIRECT EQUITY INVESTMENTS WAS ATTRIBUTED TO THE COUNTRY'S POWER SHORTAGE AND CAUTION RELATED TO LAST MAY'S ELECTIONS SOUTH KOREA WILL RELAX CREDIT AND PROPERTY RULES FOR CONGLOMERATES MARCH 1 THE MOVE SIGNALED A NEW PRIORITY FOR SHARPENING THE COUNTRY'S MANUFACTURING EDGE AND BOOSTING THE ECONOMY AS GROWTH LAST YEAR MAY HAVE SAGGED TO AN 11YEAR LOW THOUGH THE CONGLOMERATES HAVE BEEN HAILED AS A KOREAN ECONOMIC LOCOMOTIVE THEY WERE RESTRICTED AFTER COMING UNDER FIRE FOR THEIR RAPID EXPANSION AND DOMINANCE OF THE ECONOMY HINDERING ACCESS TO CREDIT AND DEVELOPMENT AT SMALLER FIRMS THE CONGLOMERATES SUBJECT TO BANKBORROWING LIMITS WILL BE CUT TO 30 FROM 50 THE 30 GROUPS' COMBINED REVENUE REPRESENTS 62 OF GROSS NATIONAL PRODUCT THEY ACCOUNTED FOR 19 OF BANK LOANS IN 1991 THE REDUCTION IS INTENDED TO REVITALIZE ACTIVITIES AT THE 20 SMALLER CORPORATIONS AND THEIR 209 UNITS IN THE PROPERTY EASING REAL ESTATE NO LONGER MUST BE SOLD IF IT TEMPORARILY ISN'T USED FOR BUSINESS THE CONGLOMERATES ALSO WILL HAVE TO PAY OFF LESS BANK DEBT WHEN THEY ENTER NEW BUSINESS AREAS LINE EXPANSIONS NO LONGER WILL REQUIRE APPROVAL BY BANK CREDITORS DEATHS IN RUSSIA EXCEEDED BIRTHS LAST YEAR FOR THE FIRST TIME SINCE WORLD WAR II THE GOVERNMENT BLAMED A STEEP DROP IN LIVING STANDARDS THE BIRTH RATE WAS 11 FOR EVERY THOUSAND PEOPLE IN THE 150 MILLION POPULATION DOWN FROM 12 PER THOUSAND IN 1991 THE DEATH RATE ROSE SLIGHTLY TO 12 PER THOUSAND VENICE'S POPULATION WHICH HAS DROPPED STEADILY FROM 174905 IN 1951 DWINDLED TO 75159 LAST YEAR AS RESIDENTS ESPECIALLY YOUNG FAMILIES FLED RISING FOOD PRICES EXPENSIVE HOUSING AND THRONGS OF SUMMER VISITORS ONEFIFTH OF THOSE WHO REMAIN ARE OLDER THAN 60 9301220038 930122 BUSINESS BRIEF BURLINGTON NORTHERN INC FOURTHQUARTER NET EXCEEDS FORECASTS BY MORE THAN 10 BURLINGTON NORTHERN INC REPORTED FOURTHQUARTER NET INCOME THAT EXCEEDED ANALYSTS' ESTIMATES BY MORE THAN 10 AS THE RAILROAD COMPANY CONTINUED TO CUT COSTS NET ROSE TO 111 MILLION OR 123 A SHARE FROM 40 MILLION OR 50 CENTS A SHARE IN THE YEAREARLIER QUARTER THE LATEST QUARTER INCLUDES A CREDIT OF 17 MILLION OR 19 CENTS A SHARE FROM THE SETTLEMENT OF AN INCOME TAX DISPUTE WITHOUT THE SPECIAL CREDIT EARNINGS WOULD HAVE BEEN 94 MILLION OR 104 A SHARE ANALYSTS HAD PREDICTED THE FORT WORTH TEXAS COMPANY'S NET WOULD BE ABOUT 95 CENTS A SHARE THE YEAREARLIER QUARTER INCLUDED AN EXTRAORDINARY LOSS OF 14 MILLION OR 18 CENTS FROM EARLY EXTINGUISHMENT OF DEBT REVENUES ROSE SLIGHTLY TO 1196 BILLION THE COMPANY ATTRIBUTED THE EARNINGS INCREASE TO COSTCUTTING EFFORTS THOUGH TRAFFIC IN CERTAIN SECTORS DECLINED IN THE FOURTH QUARTER INDUSTRIAL PRODUCTS TRAFFIC ROSE 7 WHICH THE COMPANY ATTRIBUTED TO IMPROVEMENT IN THE ECONOMY AND ITS SERVICE RELIABILITY GERALD GRINSTEIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BURLINGTON NORTHERN SAID SECOND HALF RESULTS WERE THE BEST SINCE 1989 AND THERE WILL BE CONTINUED IMPROVEMENT IN 1993 9301220037 930122 ECONOMY LABOR POSITION 26 EXPECTED TO GO TO WILLIAMSON CAPITAL LAWYER LED IN SUIT AGAINST BIAS THAT DREW BUSINESSES' COMPLAINTS BY KEVIN G SALWEN AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NAME THOMAS WILLIAMSON JR A WASHINGTON LAWYER WHO SPEARHEADED A MAJOR SUIT AGAINST CORPORATE RACIAL DISCRIMINATION TO THE TOP LEGAL POST AT THE LABOR DEPARTMENT WORD OF THE PROSPECTIVE NOMINATION IMMEDIATELY RAISED CONCERN AMONG BUSINESS GROUPS THAT THE 46YEAROLD PARTNER AT THE WASHINGTON LAW FIRM OF COVINGTON & BURLING WOULD BE TOO AGGRESSIVE AS THE DEPARTMENT'S SOLICITOR DEPARTMENT OFFICIALS ALSO SAID THAT THOMAS GLYNN A BROWN UNIVERSITY VICE PRESIDENT WHO FORMERLY HEADED THE MASSACHUSETTS WELFARE PROGRAM WILL BE NAMED DEPUTY LABOR SECRETARY MR GLYNN WILL BRING TO THE DEPARTMENT AN ABILITY TO RUN A LARGE ORGANIZATION WHICH SECRETARY OF LABOR ROBERT REICH WHO IS MORE OF A THEORETICIAN HAS NEVER DONE MR CLINTON IS EXPECTED TO NAME GERI PALAST OF THE SERVICE EMPLOYEES INTERNATIONAL UNION ASSISTANT SECRETARY FOR INTERGOVERNMENTAL AFFAIRS SHE WOULD BE THE FIRST UNION OFFICIAL TO BE NAMED TO THE CLINTON LABOR DEPARTMENT HEALTH WELFARE DISPUTES AT COVINGTON & BURLING MR WILLIAMSON REPRESENTS STATE GOVERNMENTS IN DISPUTES OVER FEDERALLY FUNDED HEALTH AND WELFARE PROGRAMS HE ALSO HEADS A PRO BONO COMMITTEE THAT HAS HANDLED CIVILRIGHTS AND EQUALEMPLOYMENT OPPORTUNITY CASES INCLUDING A SUCCESSFUL SUIT OVER EMPLOYMENT DISCRIMINATION AT BALLY CORP'S HOLIDAY SPA BUT SOME BUSINESS GROUPS EXPRESSED CONCERN ABOUT MR WILLIAMSON'S OTHER MAJOR POST AS COCHAIRMAN OF THE WASHINGTON LAWYERS' COMMITTEE FOR CIVIL RIGHTS AND URBAN AFFAIRS WHICH DOES FREE LEGAL WORK ON CIVIL RIGHTS ISSUES THE COMMITTEE REPRESENTS THE FAIR EMPLOYMENT COUNCIL OF GREATER WASHINGTON AN ORGANIZATION THAT RUNS TESTING PROGRAMS IN WHICH BLACKS AND WHITES APPLY FOR THE SAME JOB THE COUNCIL RECENTLY SUED A WASHINGTON EMPLOYMENT AGENCY FOR ALLEGED HIRING DISCRIMINATION BUSINESS GROUPS COMPLAIN THAT THE TESTING TACTICS WERE UNFAIR AND DESIGNED TO GENERATE SUITS AND THEY WORRY THAT MR WILLIAMSON WOULD BE LIKELY TO USE SIMILAR METHODS AT THE LABOR DEPARTMENT THE COUNCIL'S EXECUTIVE DIRECTOR CLAUDIA WITHERS SAID HOWEVER THAT MR WILLIAMSON HAD NO DIRECT ROLE IN THE TESTING PROGRAM DEPARTMENT OFFICIALS SAID THE PENDING NOMINATIONS WERE ANNOUNCED BY KITTY HIGGINS THE AGENCY'S NEW CHIEF OF STAFF AT A CLOSED MEETING OF TOP LABOR DEPARTMENT OFFICIALS YESTERDAY MR WILLIAMSON WAS A RHODES SCHOLAR WITH PRESIDENT CLINTON AND MR REICH AT THE LABOR DEPARTMENT MR WILLIAMSON WOULD OVERSEE A STAFF OF SEVERAL HUNDRED LAWYERS PROVIDING LEGAL ADVICE FOR MR REICH AND DECIDING WHAT CASES THE AGENCY SHOULD BRING IN SUCH AREAS AS LABOR STANDARDS AND WAGE AND HOUR VIOLATIONS MR WILLIAMSON DECLINED TO COMMENT MEANWHILE THE SENATE MOVED QUICKLY TO CONFIRM MORE THAN A DOZEN NOMINEES FOR TOP ADMINISTRATION POSTS INCLUDING MR REICH RON BROWN SECRETARY OF COMMERCE DONNA SHALALA HEALTH AND HUMAN SERVICES HAZEL O'LEARY ENERGY MIKE ESPY AGRICULTURE FEDERICO PENA TRANSPORTATION HENRY CISNEROS HOUSING AND URBAN DEVELOPMENT BRUCE BABBITT INTERIOR RICHARD RILEY EDUCATION AND JESSE BROWN VETERANS AFFAIRS ALSO APPROVED WERE WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AND HIS DEPUTY ALICE RIVLIN DEPUTY TREASURY SECRETARY ROGER ALTMAN US TRADE REPRESENTATIVE MICKEY KANTOR AND CAROL BROWNER ADMINISTRATOR FOR THE ENVIRONMENTAL PROTECTION AGENCY HEARINGS ON OTHER NOMINEES CONTINUED ON CAPITOL HILL LAURA TYSON WHO HAS BEEN NOMINATED TO HEAD THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS TOLD THE SENATE BANKING COMMITTEE THAT SHE FAVORS MORE GOVERNMENT INVOLVEMENT IN TRADE MATTERS TO MATCH FEDERAL ACTIONS ELSEWHERE IT REMAINS UNCLEAR HOW MUCH MS TYSON'S VIEWS WILL BE TAKEN INTO ACCOUNT AS THE CLINTON ADMINISTRATION DEVELOPS ITS TRADE POLICIES BUT HER STATEMENTS INDICATED THAT SHE WON'T HESITATE TO PRESS FOR AGGRESSIVE FEDERAL INVOLVEMENT IN PROMOTING US EXPORTS AND PROTECTING US INDUSTRIES THAT POSITION HAS MADE HER CONTROVERSIAL WITH ECONOMISTS WHO PREFER MORE OF A HANDSOFF APPROACH MS TYSON A PROFESSOR OF ECONOMICS AND BUSINESS ADMINISTRATION AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAID US BUSINESSES OFTEN COMPLAIN THAT THEY ARE COMPETING AGAINST FOREIGN GOVERNMENTS SHE WENT ON TO IDENTIFY FOREIGN SUBSIDIES TARIFFS AND TRADE BARRIERS THAT HURT US INDUSTRIES INCLUDING MAKERS OF AIRCRAFT COMPUTERS AND AUTO PARTS SHE SAID SUCH INDUSTRIES DESERVE MORE HELP FROM THE GOVERNMENT MS TYSON IS EXPECTED TO BE APPROVED BY THE COMMITTEE SOON MR BABBITT THE NEW INTERIOR SECRETARY FINISHED TWO DAYS OF HEARINGS IN WHICH SEVERAL LAWMAKERS EXPRESSED CONCERN THAT HE WON'T BE SUFFICIENTLY SYMPATHETIC TO THE INTERESTS OF RANCHERS MINERS AND DEVELOPERS IN THE WEST THE FORMER ARIZONA GOVERNOR TOLD THE SENATE ENERGY COMMITTEE HE IS SELLING HIS FAMILY'S INTEREST IN A BUSINESS THAT HAS SOME PARK CONCESSIONS AND INDIAN TRADING LICENSES WHICH COME UNDER THE JURISDICTION OF THE INTERIOR DEPARTMENT HE ALSO SAID HE WOULDN'T PARTICIPATE IN ANY DECISION AFFECTING THE COMPANY ON TUESDAY MR BABBITT SAID HE WOULD SELL HIS FAMILY'S INTEREST IN A NORTHERN ARIZONA RANCH THAT IS INVOLVED IN AN INDIAN LAND SETTLEMENT THAT THE DEPARTMENT IS OVERSEEING HE ALSO SAID HE WOULDN'T PARTICIPATE IN ANY DECISION AFFECTING THE TRANSACTION SEPARATELY AT THE COMMODITY FUTURES TRADING COMMISSION WILLIAM ALBRECHT A DEMOCRATIC MEMBER IS EXPECTED TO BE NAMED ACTING CHAIRMAN WHEN WENDY GRAMM LEAVES THE POST TODAY 9301220036 930122 BUSINESS BRIEF AMDAHL CORP NET INCOME OF 25 MILLION IS REPORTED FOR 4TH QUARTER CITING SEASONAL BUYING PATTERNS AMDAHL CORP SUNNYVALE CALIF SAID IT EKED OUT A SMALL FOURTH QUARTER PROFIT AMID A YEAR OF PRICING PRESSURE AND RED INK THE MAKER OF MAINFRAME COMPUTERS REPORTED A PROFIT OF 25 MILLION OR TWO CENTS A SHARE COMPARED WITH A LOSS OF 127 MILLION OR 11 CENTS A SHARE A YEAR EARLIER THE LOSS INCLUDES AN EXTRAORDINARY TAX CREDIT OF ABOUT 6 MILLION OR SIX CENTS A SHARE HIGHER DEMAND RAISED REVENUE TO NEARLY 745 MILLION FROM ABOUT 390 MILLION A YEAR AGO BUT MUCH OF THE GAIN IN VOLUME SALES WAS OFFSET BY PRICING PRESSURES SAID JOSEPH ZEMKE PRESIDENT AND CHIEF EXECUTIVE FOR THE YEAR AMDAHL POSTED A LOSS OF NEARLY 7 MILLION OR SIX CENTS A SHARE THAT COMPARES WITH A YEAREARLIER PROFIT OF 106 MILLION OR 10 CENTS A SHARE INCLUDING AN EXTRAORDINARY GAIN OF ABOUT 6 MILLION OR SIX CENTS A SHARE REVENUE ROSE TO 252 BILLION IN 1992 FROM 170 BILLION MR ZEMKE SAID HIS OUTLOOK FOR THIS YEAR IS GUARDED 9301220035 930122 AUTO FIRMS URGE HIGHER GASOLINE TAX TO AVERT TOUGHER FUELUSE STANDARD BY NEAL TEMPLIN AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL THE NATION'S BIG THREE AUTO MAKERS HAVE BEGUN CLAMORING FOR AN INCREASE IN THE GASOLINE TAX ALIGNING THEMSELVES WITH SOME ERSTWHILE ENEMIES IN THE ENVIRONMENTAL MOVEMENT BUT THE COMPANIES HAVEN'T TURNED GREEN THEIR RECENT STAND MAINLY REFLECTS ATTENTION TO THE BOTTOM LINE THE AUTO MAKERS MAKE NO BONES ABOUT THE FACT THAT THEIR ADVOCACY OF A GAS TAX IS LARGELY AN ATTEMPT TO DERAIL PRESIDENT CLINTON'S CAMPAIGN PROMISE TO IMPOSE A 40MILEPERGALLON FUELEFFICIENCY STANDARD ON THE COMPANIES UP FROM THE CURRENT 275 MILES PER GALLON EARLIER THIS MONTH THE BIG THREE'S CHIEF EXECUTIVE OFFICERS HAD A 90MINUTE PRIVATE SESSION WITH THENPRESIDENTELECT CLINTON IN WHICH THEY PRESSED THE GASOLINETAX ALTERNATIVE BEYOND WANTING TO FEND OFF NEW FUELEFFICIENCY REQUIREMENTS THERE IS ANOTHER LESS WIDELY RECOGNIZED REASON THE COMPANIES HAVE PRESSED FOR A GASOLINE TAX ANY ENERGY TAX THAT INCREASES THE PRICE OF FUEL AT THE PUMP COULD HELP THEM RAISE SALES FOR THE FUELEFFICIENT CARS THAT THEY MUST PRODUCE TO MEET CURRENT FEDERAL STANDARDS ALL MAJOR CAR MAKERS OFFER HIGHMILEAGE CARS BUT MOST SUCH VEHICLES SELL POORLY FEWER THAN 5 OF THE 219000 PEOPLE WHO BOUGHT HONDA CIVICS LAST YEAR CHOSE THE HIGHMILEAGE VERSION WHICH COSTS ABOUT 700 MORE THAN A COMPARABLE CONVENTIONALENGINE CIVIC CONSUMERS JUST DON'T VALUE FUEL ECONOMY VERY MUCH SAYS BARBARA NOCERA A HONDA MOTOR CO LOBBYIST BUT AN ENERGY TAX THAT RAISES GAS PRICES MIGHT BRING BACK THE MARKET FOR HIGHMILEAGE VEHICLES CAR MAKERS SAY IF GAS PRICES GO UP PEOPLE WILL DEMAND MORE FUELEFFICIENT CARS AND THE PRICES FOR THESE VEHICLES WILL GIVE YOU A MORE ADEQUATE RETURN FOR BUILDING THEM SAYS ROBERT LIBERATORE CHRYSLER CORP'S VICE PRESIDENT IN CHARGE OF ITS WASHINGTON OFFICE WHEN IT COMES TO THE BROADERBASED ENERGY TAXES BEING CONSIDERED BY THE CLINTON ADMINISTRATION THE INDUSTRY IS ALSO GENERALLY SUPPORTIVE TWO OF THE BIG THREE FORD MOTOR CO AND GENERAL MOTORS CORP SAY THEY WOULD SUPPORT A BROADBASED ENERGY TAX WHICH THEY SAY WOULD BE MORE EQUITABLE THAN A GASOLINE TAX THOUGH FORD SAYS IT WOULD BE HARDER TO ADMINISTER CHRYSLER IS MORE CAUTIOUS BUT SAYS IT TOO WOULD FAVOR A BROADBASED ENERGY TAX IF CONSTRUCTED CORRECTLY THE AUTO COMPANIES' CAMPAIGN TO INCREASE GASOLINE PRICES MIGHT SEEM TO PLEASE ENVIRONMENTALISTS WHO FAVOR USING ENERGY TAXES TO REDUCE CONSUMPTION OF FOSSIL FUELS BUT THE GREENS ARE KEEPING THEIR DISTANCE WHEN THE NATURAL RESOURCES DEFENSE COUNCIL GATHERED SIGNATURES FROM OTHER ENVIRONMENTAL GROUPS FOR A LETTER IT SENT LAST WEEK TO CLINTON OFFICIALS URGING SUPPORT FOR A GAS TAX AND A CARBON TAX NO EFFORT WAS MADE TO CONTACT THE AUTO MAKERS THE REASON THEY DON'T WANT TO ENCOURAGE THE AUTO MAKERS' EFFORTS TO KILL TOUGHER CORPORATE AVERAGE FUEL EFFICIENCY STANDARDS THE NRDC LETTER ARGUED THAT IF ENERGY TAXES WERE NOT SET FAIRLY HIGH THEY WOULD NOT HAVE SIGNIFICANT ENVIRONMENTAL BENEFITS UNLESS SUPPLEMENTED BY OTHER MEASURES TO REDUCE FOSSILFUEL CONSUMPTION SUCH AS INCREASED FUELEFFICIENCY STANDARDS THE CAR MAKERS AND MANY ECONOMISTS ARGUE THAT GAS TAXES ARE A FAR BETTER WAY TO ENCOURAGE FUEL CONSERVATION THAN RAISING THE EXISTING FUELECONOMY REQUIREMENT IF THERE'S GOING TO BE A PUSH TO INCREASE FUEL EFFICIENCY THE WAY TO GO IS THROUGH MARKETBASED INCENTIVES LIKE A SIGNIFICANT FUEL TAX SAYS ROBERT WADE A LOBBYIST FOR TOYOTA MOTOR CORP IN WASHINGTON TOYOTA LIKE NEARLY ALL FOREIGN AUTO MAKERS SUPPORTS A HIGHER GAS TAX MEANWHILE THE UNITED AUTO WORKERS DOESN'T WANT ANYTHING TO DO WITH DETROIT'S NEW EMBRACE OF GAS TAXES THE UNION STRONGLY OPPOSES A HIGHER TAX PARTLY BECAUSE IT IS REGRESSIVE AND WOULD BE HARDER ON THE WORKINGMAN MOREOVER IF A GASOLINE TAX DROVE PEOPLE TO BUY FUELEFFICIENT CARS UNION OFFICIALS FEAR THE BIG THREE WOULD SHIFT SMALLCAR PRODUCTION TO MEXICO AT THE EXPENSE OF US JOBS INDEED THE UAW'S OPPOSITION TO A GASOLINE TAX MAY BE ONE REASON THE CLINTON ADMINISTRATION HAS RESISTED THE IDEA UNION CHIEF OWEN BIEBER ATTENDED THE JANUARY MEETING WITH MR CLINTON ALONG WITH THE BIG THREE EXECUTIVES 9301220034 930122 BUSINESS BRIEF COMPTEK RESEARCH INC FISCAL THIRDPERIOD NET ROSE 44 DUE TO SPECIAL GAIN COMPTEK RESEARCH INC SAID FISCAL THIRDQUARTER NET INCOME ROSE 44 LARGELY DUE TO A SPECIAL GAIN ON THE SALE OF REAL ESTATE COMPTEK BUFFALO NY MAKES RADIO SYSTEMS USED TO BYPASS TELEPHONE LINES IN THE QUARTER ENDED DEC 25 NET WAS 561000 OR 12 CENTS A SHARE UP FROM 390000 OR NINE CENTS A SHARE IN THE YEAREARLIER PERIOD NET INCOME BEFORE THE GAIN PLUNGED 76 TO 93000 OR TWO CENTS A SHARE SALES ROSE 12 TO 169 MILLION FROM 151 MILLION THE YEAR BEFORE AS A RESULT OF THE THIRDQUARTER SHORTFALL AND CONTINUED VOLATILITY IN ORDERS THE COMPANY SAID EARNINGS FOR THE 1993 FISCAL YEAR ENDING IN MARCH MIGHT NOT REACH LAST YEAR'S LEVEL OF 39 CENTS A SHARE THE COMPANY ATTRIBUTED THE EARNINGS SHORTFALL IN PART TO LOWERTHANEXPECTED SALES OF ITS MICROWAVE SYSTEMS AND OF ITS FLAGSHIP DATAMOVER PRODUCT FOR THE NINE MONTHS THE COMPANY REPORTED NET INCOME OF 943000 OR 21 CENTS A SHARE DOWN 19 FROM 116 MILLION OR 28 CENTS A SHARE DURING THE YEAREARLIER PERIOD SALES WERE 48 MILLION UP 22 FROM 469 MILLION IN THE FIRST NINE MONTHS OF 1991 9301220033 930122 BUSINESS BRIEF ANNTAYLOR STORES CORP ACCORD IS REACHED TO PAY 48 MILLION TO SETTLE SUIT ANNTAYLOR STORES CORP SAID IT AGREED TO PAY 48 MILLION TO SETTLE A CLASS ACTION SHAREHOLDER SUIT THAT HAD CHARGED THE COMPANY WITH MISLEADING INVESTORS ABOUT ITS BUSINESS CONDITION BEFORE ITS INITIAL PUBLIC OFFERING THE SETTLEMENT WILL RESULT IN A CHARGE OF 28 MILLION OR 75 CENTS A SHARE AGAINST EARNINGS IN ITS FISCAL FOURTH QUARTER ENDING JAN 31 ANNTAYLOR SHARES WERE QUOTED AT 22 UP 150 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE SUIT FILED IN OCTOBER 1991 ACCUSED THE NEW YORK RETAILER OF WOMEN'S APPAREL FORMER OFFICERS AND UNDERWRITER MERRILL LYNCH & CO OF FAILING TO DISCLOSE A CHANGE IN MERCHANDISE FOCUS AND A DETERIORATION IN QUALITY AND FASHIONABILITY OF GOODS IN THE PROSPECTUS FOR THE OFFERING ANNTAYLOR WHICH DENIED ANY WRONGDOING SAID IT BELIEVED A SETTLEMENT WAS IN THE BEST INTEREST OF THE COMPANY AND ITS SHAREHOLDERS IN LAST YEAR'S FOURTH QUARTER ANNTAYLOR HAD A NET LOSS OF 54 MILLION OR 26 CENTS A SHARE THE COMPANY SAID THE LOSS LARGELY REFLECTED THE PHASEOUT OF ITS LICENSEDSHOE BUSINESS 9301220032 930122 OTC FOCUS INSTITUTIONAL BUYING SHORT COVERING PUSH OVERTHECOUNTER STOCKS TO RECORD BY MARY ROMANO AND ELVIRA DOMENICONE STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS MOVED TO A HIGH AS THE NASDAQ INDEX PIERCED THE 700 LEVEL PROPELLED BY INSTITUTIONAL BUYING AND PURCHASES BY SHORT SELLERS SEEKING TO COVER THEIR LOSSES TECHNOLOGY ISSUES HELPED LIFT THE NASDAQ COMPOSITE INDEX 333 POINTS OR 048 TO A RECORD CLOSE AT 70077 THE BUYING FRENZY WAS FUELED BY INSTITUTIONAL INVESTORS BUYING INTO THE TECHNOLOGY SECTOR IN A BIG WAY AND SHORTCOVERING IN AN EVEN BIGGER WAY SAID ROBERT PADALA A SENIOR VICE PRESIDENT OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE NATIONAL MARKET SYSTEM VOLUME WAS 224601700 SHARES UP FROM 222446600 SHARES YESTERDAY GAINERS LED DECLINERS 14361197 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 093 POINT OR 039 TO 23982 THE DOW JONES INDUSTRIAL AVERAGE ADDED 1107 POINTS OR 034 TO FINISH AT 325302 MARKET PLAYERS SAID THEIR INTEREST WAS PIQUED BY NASDAQ ISSUES REPORTING EXCELLENT EARNINGS AND BY ANTICIPATION THAT OTHER COMPANIES WOULD REPORT BETTERTHANEXPECTED EARNINGS CREATIVE TECHNOLOGY SAID ITS SECONDQUARTER NET INCOME WAS 55 CENTS A SHARE UP FROM JUST 19 CENTS A SHARE A YEAR EARLIER ITS STOCK JUMPED 5 TO 29 1/2 THERE WAS ACROSSTHEBOARD EXCELLENT BUYING POWER SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO AS THE OVERTHECOUNTER MARKET CLIMBED TO A NEW HIGH SHORTSELLERS OPTED TO CUT THEIR LOSSES AND BEGAN BUYING SHARES FORCING PRICES EVEN HIGHER SHORT SELLERS EMPLOY A STRATEGY DESIGNED TO PROFIT AS STOCK PRICES FALL THEY SELL BORROWED SHARES THEN REPLACE THEM WITH SUBSEQUENT PURCHASES IT WAS A MADHOUSE THERE WAS A TREMENDOUS AMOUNT OF NEW MONEY COMING INTO THE MARKET SAID CHARLES HOWLEY MANAGER OF NASDAQ TRADING AT SOUNDVIEW FINANCIAL GROUP THERE WAS A LOT OF PENSION MONEY COMING IN AND THAT TOUCHED OFF A LOT OF SHORTCOVERING THERE WAS JUST A LOT OF MONEY TO BE INVESTED THE BULL IS NOT DEAD TECHNOLOGY STOCKS LED THE NASDAQ ISSUES' MOVE WITH THE HELP OF INSTITUTIONAL INVESTORS WHEN THEY GET AN IDEA ABOUT THIS SECTOR IT REALLY GETS THESE STOCKS MOVING AND THEN IT GETS THE SHORT TRADERS RIGHT BEHIND THEM SAID DONALDSON LUFKIN'S MR PADALA AMONG BIG TECHNOLOGY STOCKS APPLE COMPUTER WAS UNCHANGED AT 60 NOVELL CLIMBED 1/8 TO 30 5/8 AND MICROSOFT ROSE 1 1/8 TO 89 1/2 SYNOPTICS COMMUNICATIONS WHICH MAKES CABLING SYSTEMS ALLOWING THE USE OF REGULAR TELEPHONE WIRES FOR COMPUTER LOCAL AREA NETWORKS GAINED 2 1/2 TO 91 3/4 THE NASDAQ BANK INDEX ENDED ITS 11SESSION RECORD STREAK DROPPING 019 POINT OR 003 TO 57395 ALTERA CORP SHARES ADVANCED 1 5/8 TO 15 3/4 AND WERE THE SECOND MOST ACTIVE ISSUE IN OVERTHECOUNTER TRADING THE COMPANY TOPPED ANALYSTS' EARNINGS FORECASTS FOR ITS FOURTH QUARTER THE SAN JOSE CALIF INTEGRATEDCIRCUIT MAKER'S NET INCOME OF 10 CENTS A SHARE FOR THE PERIOD WAS LOWER THAN THE 25 CENTS A SHARE REPORTED A YEAR EARLIER BUT EXCEEDED THE MEAN ESTIMATE OF EIGHT CENTS A SHARE PROJECTED BY ANALYSTS SURVEYED BY IBES OR THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM CREATIVE TECHNOLOGY A MILPITAS CALIF MULTIMEDIA PRODUCT DEVELOPER SAID SECONDQUARTER SALES MORE THAN TRIPLED TO 856 MILLION FROM 247 MILLION MEDIA VISION INC FREMONT CALIF WHICH ALSO MAKES MULTIMEDIA COMPUTING PRODUCTS CLIMBED 3 1/2 TO 28 SUPERMAC TECHNOLOGY ADVANCED 1 3/4 TO 22 3/4 ON FOURTHQUARTER PROFIT OF 23 CENTS A SHARE COMPARED WITH 15 CENTS A SHARE A YEAR EARLIER ON 15 MILLION FEWER SHARES SALES FOR THE SUNNYVALE CALIF SUPPLIER OF COLOR GRAPHIC SYSTEMS ROSE TO 394 MILLION FROM 218 MILLION STRONGER EARNINGS BOOSTED ANCHOR BANCORP 2 1/4 TO CLOSE AT 14 3/8 THE HEWLETT NY BANK HOLDING COMPANY POSTED NET INCOME OF 76 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER COMPARED WITH 33 CENTS A YEAR EARLIER AT LEAST ONE BIOTECHNOLOGY ANALYST THINKS CENTOCOR INC'S PROBLEMS MIGHT HAVE CREATED AN INVESTMENT OPPORTUNITY IN ITS FINANCING VEHICLE TOCOR II INC TOCOR II JUMPED 4 5/8 TO 12 3/4 AFTER A HAMBRECHT & QUIST ANALYST RAISED HIS INVESTMENT RATING ON ITS UNITS TO BUY FROM NEUTRAL THE ANALYST HAD DOWNGRADED THE ISSUE AFTER CENTOCOR ANNOUNCED MONDAY THAT IT WAS SUSPENDING CLINICAL TRIALS AND FOREIGN SALES OF ITS LEADING MONOCLONAL ANTIBODY PRODUCT CENTOXIN BUT HE NOW ARGUES THAT THE TOCOR II UNITS ARE SIGNIFICANTLY UNDERVALUED CENTOCOR BASED IN MALVERN PA ROSE 7/8 TO 7 1/2 ELSEWHERE GENERAL NUTRITION COS ENDED ITS FIRST DAY OF TRADING AT 20 1/2 THE PITTSBURGHBASED VITAMIN SUPPLEMENT RETAILER'S INITIAL PUBLIC OFFERING OF 44 MILLION COMMON SHARES WAS PRICED AT 16 EACH AUTOIMMUNE INC A LEXINGTON MASS PHARMACEUTICAL COMPANY WHOSE INITIAL THREE MILLION COMMON SHARES WERE PRICED WEDNESDAY AT 13 EACH CLOSED AT 14 9301220031 930122 INTERNATIONAL BRIEF SANDOZ AG SALES ROSE 8 LAST YEAR CONCERN SAYS PROFIT CLIMBED SANDOZ AG ANNOUNCED AN 8 RISE IN SALES FOR 1992 AND SAID IT EXPECTS TO POST A SUBSTANTIAL RISE IN GROUP PROFIT THE SWISS PHARMACEUTICAL AND CHEMICAL COMPANY SAID SALES WHICH TOTALED 144 BILLION SWISS FRANCS 980 BILLION UP FROM 134 BILLION FRANCS THE PREVIOUS YEAR WERE BUFFETED BY RECESSIONARY TRENDS WHICH HAVE AFFECTED BROAD SECTORS OF THE WORLD ECONOMY HOWEVER THANKS TO SOLID VOLUME GROWTH ALL DIVISIONS INCREASED SALES IT SAID THE COMPANY SAID IT BASED ITS EARNINGS ESTIMATE ON THE PERFORMANCE OF ITS UNITS BUT ANALYSTS SAY THE COMPANY WILL BENEFIT SIGNIFICANTLY FROM THE ADOPTION OF INTERNATIONAL ACCOUNTING STANDARDS TO STATE 1992 RESULTS THE CONSERVATIVE SWISS BOOKKEEPING METHODS THAT SANDOZ USED IN THE PAST WEIGHED ON ITS BOTTOM LINE THEY SAY SWISS BANK CORP ANALYST WOLFGANG KIRCHMAYR ESTIMATED THAT THE CHANGEOVER TO INTERNATIONAL STANDARDS ADDED AS MUCH AS 250 MILLION SWISS FRANCS TO SANDOZ'S 1992 NET AS A RESULT MR KIRCHMAYR EXPECTS A 37 SURGE IN NET INCOME TO 152 BILLION FRANCS FROM 111 BILLION FRANCS IN 1991 9301220030 930122 BUSINESS BRIEF BEAR STEARNS COS FISCAL SECONDQUARTER NET DROPPED 17 TO 643 MILLION BEAR STEARNS COS NEW YORK SAID PROFIT FOR THE SECOND QUARTER ENDED DEC 31 FELL NEARLY 17 AS INCOME FROM INVESTMENT BANKING SLOWED THE BROKERAGE FIRM SAID NET INCOME FELL TO 643 MILLION OR 55 CENTS A SHARE FROM 774 MILLION OR 67 CENTS A SHARE A YEAR EARLIER TOTAL REVENUE FELL 96 TO 6311 MILLION FROM 698 MILLION AS INVESTMENT BANKING INCOME DROPPED NEARLY 34 TO 632 MILLION THE COMPANY'S CHIEF FINANCIAL OFFICER WILLIAM J MONTGORIS ATTRIBUTED THE DECLINE TO A SLOWDOWN IN EQUITY UNDERWRITING COMPARED WITH AN UNUSUALLY STRONG QUARTER A YEAR EARLIER THE YEARAGO FISCAL SECOND QUARTER ALSO INCLUDED A ONETIME GAIN ON AN INVESTMENT IN A COMPANY TAKEN PUBLIC BY THE FIRM HE ADDED FOR THE FIRST SIX MONTHS NET ROSE 22 TO 1273 MILLION OR 112 A SHARE FROM 1245 MILLION OR 107 A SHARE A YEAR EARLIER TOTAL REVENUE FELL 46 TO 12 BILLION FROM NEARLY 13 BILLION 9301220029 930122 TECHNOLOGY SEMATECH CLAIMS MAJOR ADVANCE BY HALVING SIZE OF CHIP CIRCUITS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS SEMATECH IN ITS MOST IMPORTANT TECHNICAL ACHIEVEMENT SO FAR SAID IT HAS PRODUCED COMPUTER CHIPS WITH CIRCUITS HALF THE SIZE OF THE INDUSTRY'S CURRENT STATEOFTHEART PRODUCT THE MOVE PART OF A LONGSTANDING CHIP INDUSTRY RACE TOWARD SMALLER AND SMALLER PARTS WILL ENABLE CHIP MAKERS TO PRODUCE CIRCUITS 200 TIMES THINNER THAN A HUMAN HAIR BY SHRINKING THE SIZE OF THE CIRCUITS COMPANIES WILL BE ABLE TO CRAM MORE TRANSISTORS ON A CHIP BOOSTING ITS POWER SEMATECH SAID THE CIRCUITS ON ITS TEST CHIPS ARE 035 MICRON WIDE COMPARED WITH 07 MICRON CIRCUITS ON TODAY'S MOST ADVANCED INTEGRATED CIRCUITS SEMATECH IS A JOINT VENTURE OF A GROUP OF SEMICONDUCTOR INDUSTRY COMPANIES TO THE TECHNOLOGIST THIS IS THE MOON SHOT SAID MILLER BONNER A SEMATECH SPOKESMAN COMPANY OFFICIALS SAID THEY ACCOMPLISHED THE MILESTONE BY FINETUNING EACH OF THE DOZENS OF DIFFERENT MACHINES USED IN THE CHIPMAKING PROCESS THE EFFORT INCLUDED RUNNING COMPUTER CHIPS THROUGH EACH MACHINE HUNDREDS OF TIMES TO CALIBRATE THE EQUIPMENT EARLIER THIS WEEK ADVANCED MICRO DEVICES INC AND HEWLETTPACKARD CO BOTH SEMATECH MEMBER COMPANIES SAID THEY ARE JOINTLY WORKING ON A PROCESS TO PRODUCE 035 MICRON DEVICES AN AMD SPOKESMAN SAID THE VENTURE IS BEING CONDUCTED IN TANDEM WITH SEMATECH WHICH IS FOCUSED ONLY ON IMPROVING CHIPMAKING EQUIPMENT NOT ON PRODUCING THE DEVICES THEMSELVES THE SEMATECH ADVANCE OUTLINED IN A BRIEFING AT THE CONSORTIUM'S HEADQUARTERS IN AUSTIN COMES FIVE YEARS AND ALMOST 1 BILLION AFTER THE GROUP WAS FORMED TO RESCUE AN AILING US COMPUTER CHIP INDUSTRY FUNDED JOINTLY BY THE US GOVERNMENT AND MEMBER COMPANIES THE CONSORTIUM ALREADY IS WIDELY CREDITED WITH SLOWING THE MARKETSHARE DROP OF US CHIPEQUIPMENT MAKERS WHO NOW CONTROL 53 OF A 10 BILLION WORLD MARKET UP FROM LESS THAN 40 FIVE YEARS AGO THE CONSORTIUM'S SUCCESS THOUGH HAS PROMPTED QUESTIONS ABOUT WHETHER SEMATECH OUGHT TO CONTINUE AT LEAST IN ITS CURRENT FORM A COMMITTEE OF SEMICONDUCTOR EXECUTIVES IS EXPECTED NEXT MONTH TO RELEASE A TECHNICAL ROAD MAP FOR THE CONSORTIUM BASED ON THAT STUDY SEMATECH AND CLINTON ADMINISTRATION OFFICIALS WILL DECIDE WHETHER THE GROUP SHOULD BE EXPANDED COMBINED WITH OTHER GOVERNMENT RESEARCH OPERATIONS OR CLOSED ALTOGETHER WE KNOW THERE IS GOING TO BE SOME KIND OF SEMATECH GOING INTO THE 21ST CENTURY MR BONNER SAID WE JUST DON'T KNOW WHAT OUR ROLE WILL BE 9301220028 930122 BUSINESS BRIEF FIRST DATA CORP FOURTHQUARTER NET INCOME ROSE 18 TO 434 MILLION FIRST DATA CORP WHICH PROCESSES PAYMENT TRANSACTIONS FOR FINANCIAL SERVICES CABLE TELEVISION AND OTHER INDUSTRIES SAID FOURTHQUARTER NET INCOME ROSE 18 THE COMPANY'S EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT FIRST DATA'S SHARES DROPPED 175 TO 3425 EACH ON THE NEW YORK STOCK EXCHANGE AFTER REACHING A 52WEEK HIGH WEDNESDAY OF 36 DONALDSON LUFKIN & JENRETTE INC ANALYST SCOTT SMITH SAID INVESTORS MAY HAVE EXPECTED EVEN STRONGER EARNINGS AFTER A BUSY HOLIDAY SEASON FOR CREDIT CARD TRANSACTIONS THE COMPANY HE ADDED ALSO CHOSE TO BUILD RESERVES AND STRENGTHEN ITS BALANCE SHEET RATHER THAN RETURN ALL OF ITS PROFITS TO EARNINGS FIRST DATA WHICH IS 54OWNED BY AMERICAN EXPRESS CO SAID FOURTHQUARTER NET ROSE TO 434 MILLION OR 39 CENTS A SHARE FROM 368 MILLION OR 35 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 86 TO 3234 MILLION FROM 2977 MILLION 9301220027 930122 INTERNATIONAL BRIEF BARCLAYS PLC BANK TO SPLIT RESPONSIBILITIES OF CHAIRMAN CEO BUXTON BARCLAYS PLC LONDON CONFIRMED ITS PLANS TO SPLIT THE RESPONSIBILITIES OF ITS CHAIRMAN AND CHIEF EXECUTIVE ANDREW BUXTON I HAVE TAKEN NOTICE OF WHAT OUR SHAREHOLDERS THINK AND WILL BE TAKING STEPS TO SPLIT THE RESPONSIBILITIES MR BUXTON WROTE IN A LETTER TO SENIOR DIRECTORS AND MANAGERS DATED JAN 14 A BANK SPOKESMAN SAID THE MOVE WOULD TAKE PLACE SOME TIME THIS YEAR BARCLAYS HAS BEEN FACING INCREASING CALLS FROM ITS SHAREHOLDERS TO DIVIDE THE ROLES OF CHAIRMAN AND CHIEF EXECUTIVE FOLLOWING THE RECOMMENDATIONS OF THE CADBURY REPORT ON CORPORATE GOVERNANCE THE REPORT RECOMMENDS THAT THERE SHOULD BE A CLEARLY ACCEPTED DIVISION OF RESPONSIBILITIES AT THE HEAD OF A COMPANY WHICH WILL ENSURE A BALANCE OF POWER THE LETTER CONTINUED IT DOES NOT ACTUALLY SAY THAT THE ROLES SHOULD BE SPLIT BUT IT DOES RECOMMEND THERE SHOULD BE A STRONG INDEPENDENT ELEMENT ON THE BOARD MR BUXTON BECAME CHAIRMAN AND CHIEF EXECUTIVE AFTER THE RETIREMENT OF SIR JOHN QUINTON IN MAY 9301220026 930122 FINANCING BUSINESS SEARS ROEBUCK & CO SEARS ROEBUCK & CO'S DEAN WITTER DISCOVER & CO UNIT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION A SHELF OFFERING OF AS MUCH AS 3 BILLION OF DEBT SECURITIES THE SUBSIDIARY DECLINED TO SPECIFY HOW IT WILL USE THE PROCEEDS DEAN WITTER'S TWO MAJOR OPERATIONS ARE ITS SECURITIES BROKERAGE OPERATION AND CREDITCARD BUSINESS SEARS PLANS TO SELL 20 OF DEAN WITTER TO THE PUBLIC IN AN INITIAL PUBLIC STOCK OFFERING EXPECTED BY MARCH 9301220025 930122 BUSINESS BRIEF MONSANTO CO PROFIT MORE THAN DOUBLED IN 4TH PERIOD ON SALE OF UNIT MONSANTO CO SAID FOURTHQUARTER NET INCOME MORE THAN DOUBLED AS A RESULT OF THE SALE OF A DIVISION WHICH WAS PARTLY OFFSET BY A CHARGE FOR COSTCUTTING MEASURES THE ST LOUISBASED COMPANY SAID NET FOR THE PERIOD WAS 141 MILLION OR 114 A SHARE COMPARED WITH 66 MILLION OR 53 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES DECLINED SLIGHTLY TO 187 BILLION FROM 189 BILLION MONSANTO'S FOURTHQUARTER PROFIT RESULTED FROM A ONETIME GAIN OF 554 MILLION OR 449 A SHARE ON THE SALE OF ITS FISHER CONTROLS INTERNATIONAL DIVISION THAT GAIN WAS PARTIALLY OFFSET BY ONETIME CHARGES PRINCIPALLY A FOURTH QUARTER COSTCUTTING CHARGE OF 425 MILLION OR 344 A SHARE THE CHARGE COVERED LAYING OFF 3200 EMPLOYEES OR 10 OF ITS WORK FORCE WITH MOST OF THE CUTS COMING FROM ITS FLAGGING GD SEARLE DRUG DIVISION FOR THE YEAR THE CHEMICAL DRUG AND FOOD PRODUCTS COMPANY REPORTED A LOSS 88 MILLION OR 71 CENTS A SHARE COMPARED WITH 1991 NET OF 296 MILLION OR 233 A SHARE SALES FOR THE YEAR SLIPPED TO 776 BILLION FROM 794 BILLION IN 1991 FULLYEAR EARNINGS WERE REDUCED BY A RESTRUCTURING CHARGE OF 325 MILLION OR 254 A SHARE 9301220024 930122 WHO'S NEWS AMERITECH NAMES 2 INSIDERS TO VICE CHAIRMEN POSTS CHICAGO AMERITECH CORP ONE OF THE SEVEN BABY BELL COMPANIES FILLED ITS TWO VACANT VICE CHAIRMEN SLOTS WITH BABY BOOMERS WHO HAVE PLENTY OF PHONE COMPANY EXPERIENCE RICHARD H BROWN PRESIDENT OF AMERITECH'S ILLINOIS BELL TELEPHONE CO UNIT AND RICHARD C NOTEBAERT PRESIDENT OF AMERITECH SERVICES A SISTER UNIT BOTH 45 YEARS OLD WERE NAMED VICE CHAIRMEN AND DIRECTORS BRINGING THE COMPANY'S BOARD TO 14 MEMBERS MESSRS BROWN AND NOTEBAERT WILL CONTINUE TO MANAGE AMERITECH UNDER ITS CURRENT STRUCTURE AND LATER SHIFT TO A NEW ORGANIZATIONAL STRUCTURE THE COMPANY SAID MR BROWN WILL BE RESPONSIBLE FOR AMERITECH'S STATE AND FEDERAL LEGISLATIVE AND REGULATORY INITIATIVES CORPORATE COMMUNICATIONS AND AMERITECH PUBLISHING HE WILL CONTINUE AS PRESIDENT OF ILLINOIS BELL MR NOTEBAERT WILL BE RESPONSIBLE FOR AMERITECH'S EFFORT TO DEVELOP A NEW BUSINESS UNIT STRUCTURE HE WILL ALSO OVERSEE OPERATIONS OF THE BELL TELEPHONE COMPANIES IN INDIANA MICHIGAN OHIO AND WISCONSIN AMERITECH SERVICES AMERITECH INFORMATION SYSTEMS AND AMERITECH MOBILE COMMUNICATIONS 9301220023 930122 BUSINESS BRIEF SILICON GRAPHICS INC RECORD REVENUE FUELS JUMP OF 42 IN 2NDPERIOD PROFIT SILICON GRAPHICS INC MOUNTAIN VIEW CALIF SAID RECORD REVENUE FUELED A 42 RISE IN PROFIT TO 239 MILLION OR 33 CENTS A SHARE IN THE FISCAL SECOND QUARTER ACHIEVING A BILLION DOLLAR REVENUE RUN RATE IS A SIGNIFICANT MILESTONE FOR OUR COMPANY SAID EDWARD MCCRACKEN PRESIDENT AND CHIEF EXECUTIVE OFFICER PACING THE QUARTER'S PERFORMANCE WERE RECORD SALES OF THE COMPANY'S IRIS INDIGO COLOR COMPUTING PRODUCT LINE AND THE SUCCESS OF ITS MIPS MICROPROCESSORS OR COMPUTERSONACHIP BASED ON REDUCED INSTRUCTION SET COMPUTING TECHNOLOGY THE COMPANY MERGED WITH MIPS COMPUTER SYSTEMS A CHIP MAKER LAST YEAR 9301220022 930122 CANADA'S INFLATION WAS 15 IN '92 BEATING TARGET BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA RECORDED IN 1992 THE SMALLEST RISE IN CONSUMER PRICES IN 30 YEARS BEATING AN INFLATIONREDUCTION TARGET SET BY THE BANK OF CANADA THE CONSUMER PRICE INDEX INCREASED 15 IN 1992 FROM 1991 STATISTICS CANADA A GOVERNMENT AGENCY SAID YESTERDAY IT WAS THE SMALLEST INCREASE SINCE A 13 RISE IN 1962 INFLATION ALSO IS EXPECTED TO REMAIN LOW THIS YEAR BECAUSE OF ECONOMIC SLACK PARTICULARLY IN THE JOB MARKET WITH THE UNEMPLOYMENT RATE CURRENTLY AT 115 WAGE PRESSURES ARE ALMOST NONEXISTENT SAID RUTH GETTER A TORONTO DOMINION BANK ECONOMIST THE BANK OF CANADA'S INFLATION REDUCTION TARGETS SET TWO YEARS AGO CALLED FOR THE YEAROVERYEAR RATE OF INCREASE IN THE CONSUMER PRICE INDEX TO BE HELD TO 3 BY THE END OF 1992 25 BY MID1994 AND 2 BY THE END OF 1995 THE CENTRAL BANK'S ULTIMATE GOAL IS ZERO INFLATION MS GETTER SAID SHE EXPECTS THE MID1994 TARGET TO BE MET BANK OF CANADA GOVERNOR JOHN CROW IS COMMITTED TO THESE TARGETS SHE SAID HE IS NOT THE KIND OF GUY WHO SAYS SOMETHING AND DOES SOMETHING ELSE SHE SAID THE TEST FOR THE TARGETS WILL COME AS THE ECONOMY PICKS UP STEAM STATISTICS CANADA WHICH COMPILES CANADA'S ECONOMIC DATA DECLARED YESTERDAY THAT THE ECONOMY HAS NOW MOVED OUT OF ITS RECESSION AS THE RECOVERY PROGRESSES BUSINESSES MAY TRY TO SLIP THROUG PRICE INCREASES TO REBUILD THEIR PROFIT MARGINS SAID PHILIP CROSS THE AGENCY'S CHIEF ANALYST BUT HE PREDICTED CONSUMERS WOULD RESIST ANY ATTEMPTS TO BOOST PRICES SUBSTANTIALLY PRIME MINISTER BRIAN MULRONEY'S GOVERNMENT HAS STRONGLY SUPPORTED THE BANK OF CANADA'S INFLATION REDUCTION GOALS BUT THE POLICY HAS BEEN ATTACKED BY OPPOSITION POLITICAL PARTIES WHICH ASSERT THAT THE LOW INFLATION COMES AT THE COST OF EMPLOYMENT JEAN CHRETIEN LEADER OF THE OPPOSITION LIBERAL PARTY SAID THAT IF HIS PARTY WERE ELECTED IT WOULD NOT FIGHT INFLATION FOR THE SAKE OF FIGHTING INFLATION THE LIBERALS STAND A GOOD CHANCE OF WINNING THE NEXT ELECTION WHICH WILL BE HELD LATER THIS YEAR THE LATEST GALLUP POLL SHOWED THE LIBERALS SUPPORTED BY 49 OF DECIDED VOTERS AND MR MULRONEY'S PROGRESSIVE CONSERVATIVE PARTY BY ONLY 19 THE REMAINDER SUPPORTED OTHER PARTIES LEO DE BEVER ANALYST AT NOMURA RESEARCH INSTITUTE SAID THAT NO MATTER WHO WINS THE NEXT ELECTION IT WILL BE NECESSARY TO TOE THE LINE ON THE ANTIINFLATION POLICY TO KEEP THE CONFIDENCE OF FOREIGN INVESTORS WHO CURRENTLY HOLD MORE THAN A QUARTER OF THE FEDERAL GOVERNMENT'S DEBT 9301220021 930122 BUSINESS BRIEF WHIRLPOOL CORP FINANCE UNIT TO REFOCUS CONCENTRATE ON CORE BUSINESS WHIRLPOOL CORP DISCLOSED PLANS TO REFOCUS ITS FINANCE UNIT AND MAKE IT MORE FINANCIALLY INDEPENDENT THE BENTON HARBOR MICH APPLIANCE CONCERN SAID WHIRLPOOL FINANCIAL CORP WILL DIVERSIFY ITS FUNDING BASE POSSIBLY THROUGH AN OFFERING OF PREFERRED STOCK THE UNIT WITH ASSETS AT YEAREND 1991 OF 215 BILLION CURRENTLY GETS ITS FUNDING VIA ITS PARENT WHIRLPOOL FINANCIAL WILL PHASE OUT ITS INVESTMENTS IN AIRCRAFTLEASING AS WELL MOST OF ITS INTERESTS IN HIGHLY LEVERAGED TRANSACTIONS THE UNIT WILL CONCENTRATE ON ITS HISTORIC ROLE OF SUPPORTING WHIRLPOOL'S CORE APPLIANCE BUSINESS AND SEEK TO EXPAND ITS CURRENT INVENTORY AND CONSUMER FINANCING IN OTHER MARKETS THE DECISION TO EXIT SOME FINANCING SECTORS WAS A RESOURCE ISSUE SAID A SPOKESWOMAN AND WAS MADE AFTER THE COMPANY STUDIED THE FINANCIAL REQUIREMENTS FOR ITS CORE APPLIANCE BUSINESS AND FOR WHIRLPOOL FINANCIAL 9301220020 930122 TECHNOLOGY NICOTINE TRACES FOUND AMONG PASSIVE SMOKERS ATLANTA THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN WHAT ONE OFFICIAL CALLED A REMARKABLE FINDING SAID THE FIRST 800 PEOPLE TESTED IN A LARGE STUDY OF EXPOSURE TO TOBACCO SMOKE ALL HAD SIGNS OF NICOTINE IN THEIR BODIES WHETHER THEY SMOKED OR NOT THE REPORT IS THE FIRST FROM THE AGENCY'S SIXYEAR SURVEY OF 23000 AMERICANS OVER AGE FOUR TO SCREEN FOR COTININE AN INDICATOR OF NICOTINE EXPOSURE THAT IS FOUND IN BLOOD SERUM DR JAMES L PIRKLE ASSISTANT DIRECTOR FOR SCIENCE IN THE CDC'S DIVISION OF ENVIRONMENTAL HEALTH LABORATORY SCIENCES CAUTIONED THAT THE RESULTS WERE VERY PRELIMINARY AND THAT FEW CONCLUSIONS COULD BE DRAWN BUT HE NOTED THAT PREVIOUS SMALLER STUDIES HAD FOUND COTININE IN 70 OR 80 OF TEST SUBJECTS NEVER 100 IT MEANS THEY'RE ALL BEING EXPOSED TO NICOTINE HE SAID AND THE DOMINANT SOURCE IS TOBACCO SMOKE THE CDC DIDN'T INDICATE HOW MANY OF THE 800 PEOPLE WERE SMOKERS OR NONSMOKERS BUT DR PIRKLE SAID A VERY LARGE PORTION WERE NONSMOKERS THE REPORT COMES TWO WEEKS AFTER A STUDY PUBLISHED BY THE ENVIRONMENTAL PROTECTION AGENCY THAT LABELED SECONDHAND SMOKE A CARCINOGEN AND SAID IT KILLS ABOUT 3000 NONSMOKERS A YEAR 9301220019 930122 BUSINESS BRIEF CURTISSWRIGHT CORP DIRECTORS AUTHORIZE THE SALE OF TWO LARGEST SUBSIDIARIES CURTISSWRIGHT CORP LYNDHURST NJ DIRECTORS AUTHORIZED THE SALE OF ITS TWO LARGEST SUBSIDIARIES WHICH TOGETHER PROVIDED ABOUT 80 OF 1992 REVENUE THE COMPANY SAID CONSOLIDATION IN THE AEROSPACE INDUSTRY HAS MADE IT MORE DIFFICULT FOR THE TWO SUBSIDIARIES FLIGHT SYSTEM AND METAL IMPROVEMENT CO TO COMPETE WITH LARGER RIVALS TREASURER ROBERT BOSI SAID THE DECISION RESULTED FROM AN EVALUATION OF HOW TO MAXIMIZE SHAREHOLDER VALUE FORGING ASSOCIATIONS WITH LARGER COMPANIES COULD ALSO IMPROVE VALUE HE SAID IN NEW YORK STOCK EXCHANGE TRADING THE COMPANY'S SHARES CLOSED AT 3825 UP 5125 MR BOSI SAID THE TWO DIVISIONS WERE VERY VERY PROFITABLE BUT DECLINED TO PROVIDE SPECIFICS THE COMPANY EARNED 48 MILLION ON SALES OF 475 MILLION IN THE THIRD QUARTER IN 1991 IT EARNED 21 MILLION ON SALES OF 191 MILLION THE FLIGHT SYSTEMS DIVISION MAKES EQUIPMENT THAT CONTROLS THE MOVEMENT OF WING FLAPS ON AIRPLANES AND THE METAL IMPROVEMENT ARM PROVIDES SERVICES THAT STRENGTHEN THE METAL USED IN AIRCRAFT 9301220018 930122 INCINERATOR TEST IN OHIO WON'T BE BLOCKED BY EPA WASHINGTON THE CLINTON ADMINISTRATION WILL PASS UP AN OPPORTUNITY TO TRY TO BLOCK A CONTROVERSIAL HAZARDOUS WASTE INCINERATOR IN EAST LIVERPOOL OHIO WHEN THE MATTER IS CONSIDERED IN FEDERAL COURT TODAY ON DEC 7 VICE PRESIDENT GORE SAID THE CLINTON ADMINISTRATION WOULDN'T ALLOW THE COMPANY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL LTD SWITZERLAND TO PROCEED WITH A TEST BURN UNTIL CERTAIN QUESTIONS WERE ANSWERED ABOUT THE PLANT'S SAFETY AND THE PROCESS BY WHICH IT HAD RECEIVED REGULATORY CLEARANCE THE INCINERATOR IS SITUATED 1100 FEET FROM AN ELEMENTARY SCHOOL THE BUSH ADMINISTRATION GRANTED THE TEST BURN PERMIT EARLIER THIS MONTH THE ENVIRONMENTAL GROUP GREENPEACE THEN OBTAINED A TEMPORARY RESTRAINING ORDER FROM FEDERAL DISTRICT COURT IN CLEVELAND A HEARING IS SCHEDULED TODAY IN CLEVELAND TO CONSIDER GREENPEACE'S REQUEST FOR A PERMANENT INJUNCTION TO PREVENT THE TEST BURN REPRESENTATIVES OF THE ENVIRONMENTAL PROTECTION AGENCY'S CHICAGO REGIONAL OFFICE WHICH GRANTED THE PERMIT WILL ATTEND DESPITE MR GORE'S OPPOSITION TO GRANTING THE PERMIT EPA ADMINISTRATOR CAROL BROWNER A FORMER SENATE STAFF AIDE TO MR GORE WON'T INTERCEDE IN THE HEARING ACCORDING TO LORETTA UCELLI WHO IS SERVING TEMPORARILY AS SPOKESWOMAN FOR THE AGENCY TODAY'S HEARING PROBABLY WON'T BE THE EPA'S LAST CHANCE TO BLOCK FULL COMMERCIAL OPERATION OF THE INCINERATOR THE AGENCY COULD BLOCK CONTINUED OPERATION IF TESTS SHOW THE INCINERATOR IS UNSAFE 9301220017 930122 CLINTON WON'T USE SYSTEM OF FIXED DEFICIT CEILINGS WASHINGTON PRESIDENT CLINTON DECIDED AGAINST RETURNING TO A SYSTEM OF FIXED CEILINGS ON THE DEFICIT BACKED UP BY AUTOMATIC SPENDING CUTS THE DECISION WHICH HAD BEEN EXPECTED HAS LITTLE PRACTICAL SIGNIFICANCE USING THE AUTHORITY GIVEN HIM BY THE 1990 DEFICITREDUCTION LAW MR CLINTON OPTED TO SAY THAT THE CEILINGS SET BY THAT STATUTE WILL BE RAISED GIVING THEM LITTLE EFFECT HAD HE DECIDED TO STICK WITH THE CEILINGS THE LAW COULD HAVE FORCED ACROSSTHEBOARD SPENDING CUTS IN THE FISCAL YEAR BEGINNING NEXT OCT 1 AND THE YEAR AFTER BUT THE GOVERNMENT COULD HAVE AVOIDED THE CUTS BY TRIMMING SPENDING MODERATELY REPUBLICANS WERE QUICK TO CRITICIZE MR CLINTON'S CALL TEXAS SEN PHIL GRAMM SAID OUR NEW PRESIDENT HAS MADE A MISTAKE BY GIVING AWAY ONE OF THE FEW TOOLS HE HAD TO PUT PRESSURE ON CONGRESS TO SHRINK THE DEFICIT MR GRAMM WAS ONE OF THE AUTHORS IN 1985 OF THE GRAMMRUDMAN LAW THAT ESTABLISHED A SYSTEM OF DEFICIT CEILINGS AND AUTOMATIC SPENDING CUTS BUT THE NEW CHAIRMAN OF THE HOUSE BUDGET COMMITTEE REP MARTIN SABO D MINN SAID THE DECISION ENABLES US TO KEEP INCENTIVES FOR HONESTY IN BUDGETING RATHER THAN REVERTING TO THE OLD GRAMMRUDMAN SYSTEM THAT PRODUCED PHONY ECONOMIC ASSUMPTIONS AND SMOKEANDMIRRORS ACCOUNTING MR CLINTON'S ECONOMIC ADVISERS SAY THE PRESIDENT WILL OFFER A PLAN NEXT MONTH THAT REDUCES THE DEFICIT SUBSTANTIALLY OVER THE NEXT FOUR YEARS 9301220016 930122 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 BRANDS INC 150 MILLION OF DEBENTURES DUE JAN 15 2023 PRICED AS 7 7/8 AT 98358 TO YIELD 802 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 070 POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CHASE MANHATTAN CORP 150 MILLION OF CUMULATIVE PREFERRED STOCK PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE SIX MILLION SHARES OF 25 PREFERRED STOCK WERE PRICED WITH A DIVIDEND YIELD OF 84 NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE JAN 28 2000 PRICED AT PAR TO YIELD 644 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH DEALERS LED BY GOLDMAN SACHS & CO THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 018 POINT ABOVE THE TREASURY SEVENYEAR NOTE FEDERAL NATIONAL MORTGAGE ASSOCIATION 150 MILLION OF MEDIUMTERM NOTES DUE JAN 29 2003 PRICED AT PAR TO YIELD 708 THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 047 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS WR GRACE & CO 300 MILLION ISSUE OF NOTES DUE FEB 1 2000 PRICED AT PAR TO YIELD 74 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 114 POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC MELLON FINANCIAL CO 200 MILLION OF NOTES DUE DEC 1 1997 PRICED AS 6 1/2 AT 99593 TO YIELD 6597 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 074 POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH BANKERS LED BY FIRST BOSTON CORP MELLON FINANCIAL IS A UNIT OF MELLON BANK CORP OVERHEAD DOOR CORP 85 MILLION OF SENIOR NOTES DUE FEB 1 2000 PRICED AT PAR TO YIELD 1225 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE OFFERING IS BEING MANAGED BY FIRST BOSTON CORP ROUSE CO 120 MILLION OF NOTES DUE JAN 15 2003 PRICED AS 8 1/2 AT 99268 TO YIELD 861 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF TWO POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO RIVERSIDE COUNTY CALIF TRANSPORTATION COMMISSION 1341 MILLION OF 1993 SERIES A SALES TAX REVENUE BONDS PRICED BY A SYNDICATE OF UNDERWRITERS INCLUDING GOLDMAN SACHS & CO SMITH BARNEY HARRIS UPHAM & CO DEAN WITTER REYNOLDS INC STONE YOUNGBERG AND FIRST BOSTON CORP YIELDS RANGE FROM 350 IN 19 94 TO 600 IN 2009 THE BONDS WITH MATURITIES IN 1997 THROUGH 2009 ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY A TRIPLEA RATING FROM MOODY'S AND S&P THE BONDS WITH MATURITIES OF 1994 THROUGH 1996 ARE NOT INSURED AND CARRY A SINGLEA RATING FROM MOODY'S AND A SINGLEAPLUS FROM S&P SEATTLE 90 MILLION OF SERIES W SEWER REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 6433 YIELDS ON THE SERIAL BONDS RANGE FROM 635 IN 2017 TO 630 IN 2023 THE TERM BONDS DUE IN 2023 WERE PRICED AS 630 AT 99250 YIELDING 635 THE BONDS WITH MATURITIES OF 2020 THROUGH 2023 HAVE BEEN INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY A TRIPLEA RATING FROM BOTH MOODY'S AND S&P THE UNINSURED BONDS WITH MATURITIES OF 2017 THOUGH 2019 HAVE BEEN HAVE BEEN RATED SINGLEA1 BY MOODY'S TEXAS 75 MILLION OF COLLEGE STUDENT LOAN'S BONDS APPARENTLY WON BY A CHEMICAL SECURITIES GROUP WITH A BID SETTING THE TRUE INTEREST COST AT ABOUT 5736 YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 445 IN 1996 TO 627 IN 2017 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P TEXAS WATER DEVELOPMENT 52 MILLION OF SERIES A B C D AND E BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE NET INTEREST COST FOR THE A B AND D SERIES AT 5898 AND THE C AND E SERIES AT 5907 YIELDS FOR FORMALLY REOFFERED BONDS WERE SET AT 300 IN 1994 TO 610 IN 2015 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P CHAMPION INDUSTRIES INC INITIAL OFFERING OF ONE MILLION COMMON SHARES PRICED AT 10 A SHARE THROUGH UNDERWRITERS LED BY FERRIS BAKER WATTS INC HEALTH & REHABILITATION PROPERTIES TRUST NINE MILLION COMMON SHARES OF PRICED AT 1275 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DUFF & PHELPS UTILITY & CORPORATE BOND TRUST INITIAL OFFERING OF 24 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO PHYSICIANS HEALTH SERVICES INC INITIAL OFFERING OF 35 MILLION CLASS A COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY DILLON READ & CO ELAN CORP 14 MILLION AMERICAN DEPOSITARY SHARES PRICED AT 33875 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO VF CORP FOUR MILLION COMMON SHARES PRICED AT 5225 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SALOMON BROTHERS HIGH INCOME FUND INC INITIAL OFFERING OF FOUR MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 213 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA THE OFFERING SERIES GOLD 1474 IS BACKED BY 7 RELOCATION MORTGAGE LOANS FROM PRUDENTIAL HOME MORTGAGE SECURITIES CO THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 78 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY SALOMON BROS THE OFFERING SERIES GOLD 1473 IS BACKED BY FREDDIE MAC'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REMIC SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 199318 IS BACKED BY FANNIE MAE'S 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 4875 MILLION OF REMIC SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES THE OFFERING SERIES 199319 IS BACKED BY 300 MILLION OF THE PRINCIPALONLY PORTION OF STRIPS TRUST 203 AND 1875 MILLION OF THE INTERESTONLY PORTION OF THE SAME TRUST STRIPS TRUST 203 IS IN TURN BACKED BY FANNIE MAE'S 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 860 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 7799 MILLION OF REMIC SECURITIES OFFERED BY FIRST BOSTON THE OFFERING SERIES 1993G6 IS BACKED BY 8 MORTGAGE SECURITIES FROM THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION THE DEAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2933 YEARS SASKATCHEWAN 400 MILLION OF DEBENTURES DUE JAN 1 2013 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE DEBENTURES WERE PRICED AS 8 AT 98329 TO YIELD 8171 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 083 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE DEBENTURES ARE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P EMCO LTD 84 MILLION SHARES PRICED AT 625 CANADIAN DOLLARS A SHARE THROUGH UNDERWRITERS LED BY WOOD GUNDY INC DAIMLERBENZ NORTH AMERICA CORP GERMAN PARENT 300 MILLION MARKS OF 8 1/4 EUROBONDS DUE FEB 12 2003 AT AN ISSUE PRICE OF 10165 VIA DEUTSCHE BANK AG COUPON 8 1/4 FOR THE FIRST TWO YEARS AND THEREAFTER WILL FLOAT AT A LEVEL EQUAL TO 13 MINUS THE SIXMONTH LONDON INTERBANK RATE FOR MARKS GUARANTEED BY DAIMLERBENZ AG FEES 145 CSFB FINANCE BV SWISS PARENT 250 MILLION GUILDERS OF 7 1/2 EUROBONDS DUE FEB 22 2000 AT AN ISSUE PRICE OF 10110 VIA CSFB NEDERLAND SPREAD OF 045 POINT ABOVE THE COMPARABLE DUTCH STATE LOAN ISSUE GUARANTEED BY CSFB GROUP FEES 1 1/2 ISTITUTO BANCARIO SAN PAOLO DI TORINO LONDON BRANCH ITALIAN PARENT 150 MILLION VIA AN ISSUE OF DEPOSITARY RECEIPTS THROUGH SALOMON BROTHERS INTERNATIONAL DEPOSITARY RECEIPTS ISSUED BY THE LAW DEBENTURE TRUST CORP MATURE FEB 18 1998 INTEREST IS PAID SEMIANNUALLY AT 0375 POINT ABOVE SIXMONTH LIBOR ISSUE AND FIXED REOFFER PRICE IS PAR FEES 020 THOMSONBRANDT INTERNATIONAL NV FRENCH PARENT FRENCH FRANCS ONE BILLION OF 8 1/2 EUROBONDS DUE FEB 23 1998 AT AN ISSUE PRICE OF 101415 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9984 TO YIELD 854 ANNUALLY A SPREAD OF 077 POINT ABOVE THE 9 1/2 OAT ISSUE DUE IN 1999 GUARANTEED BY THOMSON SA THE FRENCH ELECTRONICS GROUP FEES 1 7/8 LEEDS PERMANENT BUILDING SOCIETY UK 150 MILLION OF BONDS DUE FEB 16 2018 WITH A COUPON OF 10 1/2 AND AT AN ISSUE PRICE OF 101171 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 99296 TO YIELD 140 POINTS ABOVE THE YIELD ON THE UK GOVERNMENT'S 8 3/8 BONDS DUE 2017 FEES 2 1/2