IF THE REALITY IS ANYTHING CLOSE TO THE RHETORIC BILL CLINTON IS GOING TO REDEFINE THE RELATIONSHIP BETWEEN GOVERNMENT AND BUSINESS STYLING HIMSELF AS A NEW KIND OF DEMOCRAT MR CLINTON IS PROMISING A LOT TO INDUSTRY NEW INCENTIVES FOR COMPANIES TO INVEST IN PLANTS AND EQUIPMENT A STRONG STANCE AGAINST THE UNFAIR TRADING PRACTICES OF GLOBAL COMPETITORS A SURGE IN GOVERNMENT SPENDING ON INFRASTRUCTURE PROJECTS AND PERHAPS MOST IMPORTANT A SENSITIVE EAR TO CORPORATE AMERICA'S CONCERNS ABOUT THE LONGTERM HEALTH OF THE ECONOMY THIS IS A MAN WHO UNDERSTANDS THAT ONLY PROFITABLE AND PRODUCTIVE COMPANIES CAN AFFORD TO PAY HIGHER WAGES SAYS ROBERT CIZIK THE CHAIRMAN OF COOPER INDUSTRIES INC A HOUSTONBASED MANUFACTURER OF PRODUCTS FOR A WIDE RANGE OF MARKETS INCLUDING AUTOMOBILES AND ELECTRONICS NONETHELESS MR CLINTON MAY ALSO EXTRACT A LOT FROM BUSINESS HE HAS TALKED FOR EXAMPLE ABOUT TIGHTER ENVIRONMENTAL RESTRICTIONS ON COMPANIES AND AS HE ATTEMPTS TO PROVIDE ALL CITIZENS WITH BETTER HEALTHCARE COVERAGE AND JOB TRAINING THE BURDEN TO PAY FOR THOSE THINGS IS LIKELY TO FALL HEAVILY ON CORPORATIONS MORE BROADLY MR CLINTON'S IDEAS FOR AN ACTIVIST GOVERNMENT MAY IN DAILY PRACTICE STRIKE SOME BUSINESSES AS OVERLY MEDDLESOME BY TAMPERING WITH THE TAX CODE TO NUDGE EXECUTIVES IN THE DIRECTIONS HE WANTS THEM TO GO THE NEW PRESIDENT MAY UNWITTINGLY OPEN A PANDORA'S BOX IF YOU LOOK AT THE HISTORY OF DEMOCRATIC ADMINISTRATIONS YOU USUALLY END UP WITH HIGHER INFLATION AND HIGHER INTEREST RATES AND THAT WOULDN'T BE GOOD FOR THE ECONOMY OR THIS COMPANY SAYS IRA SILVER MANAGER OF PLANNING AND FORECASTING AT THE GIANT RETAILER JC PENNEY CO CLINTON'S RHETORIC IS DIFFERENT THAN THAT OF PREVIOUS DEMOCRATS BUT A LOT OF PEOPLE AT PENNEY ARE STILL WORRIED BY AND LARGE HOWEVER MR CLINTON'S VISION OF A PUBLICPRIVATE PARTNERSHIP SEEMS TO PLEASE MOST BIGBUSINESS EXECUTIVES HE'S ENGAGING US IN A DIALOGUE SAYS SHERYL HANDLER THE PRESIDENT OF SUPERCOMPUTER MAKER THINKING MACHINES CORP I DON'T KNOW HOW HE'S GOING TO COME OUT ON A BUNCH OF THINGS BUT EVEN IF HE COMES OUT ON AN ISSUE DIFFERENTLY THAN WHERE I STAND I AT LEAST WILL KNOW IT ISN'T A SUPERFICIAL RESPONSE OR A CAVALIER ONE ADDS JAMES JONES THE CHAIRMAN OF THE AMERICAN STOCK EXCHANGE FIVE YEARS AGO THERE WAS A CONFIRMED VIEW AMONG BUSINESS PEOPLE THAT GOVERNMENT WAS THE PROBLEM AND THAT DEMOCRATS JUST WANTED TO MICROMANAGE NOW THE PENDULUM HAS SWUNG THE OTHER WAY THEY DON'T SEE GOVERNMENT AS A THREAT ANYMORE AND THEY THINK CLINTON WILL APPLY THE SOLUTIONS IN A MODEST FASHION COURTING THE CORPORATE COMMUNITY WILL BE NOTHING NEW FOR MR CLINTON AS GOVERNOR OF ARKANSAS HE ACTIVELY PROMOTED BUSINESS INTERESTS AS A PRESIDENTIAL CANDIDATE HE ASKED THE NATION'S TOP EXECUTIVES FOR ADVICE ON HOW TO REVIVE THE STUBBORNLY SLUGGISH ECONOMY FOR HIS TREASURY SECRETARY HE TAPPED A LONGTIME CHAMPION OF THE OIL AND REALESTATE INDUSTRIES AND HIS WHITE HOUSE CHIEF OF STAFF COMES NOT FROM THE RANKS OF WASHINGTON'S POWER ELITE BUT FROM THE EXECUTIVE SUITE OF A MULTIBILLIONDOLLAR NATURALGAS COMPANY CLINTON IS REALLY LISTENING TO BUSINESS LEADERS SAYS THOMAS TYRRELL THE CHIEF EXECUTIVE OFFICER OF AMERICAN STEEL & WIRE CORP MR TYRRELL ADDS THAT ALTHOUGH HE VOTED FOR GEORGE BUSH HE WAS WON OVER BY MR CLINTON DURING THE TWODAY SUMMIT ON THE ECONOMY IN LITTLE ROCK ARK LAST MONTH HOW LONG THE ENCOMIUMS WILL KEEP COMING IS UNCLEAR ULTIMATELY OF COURSE MR CLINTON'S STANDING IN THE BUSINESS WORLD WILL REST ON HOW HIS OVERARCHING POLICIES TRANSLATE IN THE TRENCHES EVERY DAY THERE ARE COUNTLESS INTERACTIONS BETWEEN BUSINESSES AND BUREAUCRATS WITH THIS IN MIND HERE IS A SERIES OF SNAPSHOTS OF WHAT COMPANIES CAN EXPECT AS THEY DEAL WITH VARIOUS GOVERNMENT AGENCIES UNDER THE NEW ADMINISTRATION IN VIEW OF THE EUROPEAN COMMUNITY'S PLAN TO CUT ITS OWN EXPORT AID THE CLINTON ADMINISTRATION WILL FACE CONFLICTING PRESSURES OVER AGRICULTURE'S 1 BILLION EXPORTSUBSIDY PROGRAM SOME FARM GROUPS WANT THE ASSISTANCE WHICH CURRENTLY GOES LARGELY TO COUNTER THE EC PROGRAM SHIFTED TO TARGET GROWERS IN CANADA AND AUSTRALIA ADMINISTRATION BUDGETEERS FOR THEIR PART WILL SEE AN OPPORTUNITY TO REDUCE THE DEFICIT AGRICULTURAL INTERESTS WILL LIKELY BE PITTED AGAINST ENVIRONMENTAL GROUPS IN DEBATES OVER WETLANDS REGULATION ENDANGEREDSPECIES PROTECTION AND PESTICIDE SAFETY CONGRESS IS EXPECTED TO TAKE UP ONE OR ALL OF THESE ISSUES THIS YEAR FOR BUSINESS THE MOST NOTABLE CHANGE IN ENVIRONMENTAL POLICY WILL OCCUR AT THE WHITE HOUSE WHERE UNDER PRESIDENT BUSH THE COMPETITIVENESS COUNCIL FREQUENTLY PROVIDED REGULATORY RELIEF TO COMPANIES DOING BATTLE WITH THE EPA NOW THE COUNCIL IS LIKELY TO BE DISMANTLED AND EVEN IF IT ISN'T COMPANIES CAN'T EXPECT THE SAME SYMPATHY FROM VICE PRESIDENT GORE THAT THEY ONCE GOT FROM VICE PRESIDENT QUAYLE AN ENORMOUS LEGISLATIVE AGENDA LIES AHEAD FOR THE CLINTON ADMINISTRATION'S EPA THE CLEAN WATER ACT IS DUE FOR REAUTHORIZATION PROVIDING AN OPPORTUNITY FOR ENVIRONMENTALISTS TO PRESS FOR STRICTER STANDARDS FOR NONPOINT SOURCE POLLUTERS SUCH AS FARMERS WHOSE PESTICIDES DRAIN INTO RIVERS AND STREAMS ALSO UP FOR RENEWAL IS THE RESOURCE CONSERVATION RECOVERY ACT THE NATION'S PRINCIPAL LAW DEALING WITH HAZARDOUS WASTE EARLY INDICATIONS ARE THAT THE CLINTON ADMINISTRATION WILL MOVE TO RESTRICT SHARPLY THE BUILDING OF NEW INCINERATORS IN FACT VICE PRESIDENTELECT GORE HAS ALREADY INTERCEDED TO BLOCK THE BUILDING OF AN INCINERATOR IN EAST LIVERPOOL OHIO BY WASTE TECHNOLOGIES INDUSTRIES A SUBSIDIARY OF VON ROLL LTD SWITZERLAND IN ADDITION THE EPA'S GIGANTIC SUPERFUND PROGRAM FACES LIKELY REVISION HOWEVER THERE ARE SO MANY FACTIONS ARGUING FOR SO MANY CLASHING REFORMS OF THIS PROBLEMPLAGUED APPROACH TO TOXICWASTE TREATMENT THAT THE LEGISLATIVE EFFORT MAY WELL END IN DEADLOCK ON THE ISSUE OF AUTOMOBILE FUEL ECONOMY MR CLINTON HAS BEEN BACKING AWAY FROM HIS TOUGH CAMPAIGN STANCE IN FAVOR OF HIGHER STANDARDS HIS ADMINISTRATION IS NOW LIKELIER TO SEEK A VOLUNTARY AGREEMENT WITH AUTO MAKERS THE BUSH ADMINISTRATION IS LEAVING TWO VACANCIES ON THE FIVEMEMBER COMMISSION INCLUDING THE CHAIRMANSHIP WHOEVER IS TAPPED TO FILL THOSE SEATS COULD HAVE CONSIDERABLE INFLUENCE ON COMMUNICATIONS POLICIES OVERALL AND ON THE CLINTON ADMINISTRATION'S APPROACH TO DEVELOPING 21STCENTURY TELECOMMUNICATIONS NETWORKS BUT NOMINATIONS AREN'T EXPECTED SOON AND PERHAPS NOT FOR A FEW MONTHS IN THE MEANTIME COMMUNICATIONS COMPANIES ARE LOOKING FOR EARLY GUIDANCE ON SUCH IMPORTANT ISSUES AS IMPLEMENTATION OF THE 1992 CABLETELEVISION REGULATION BILL ESTABLISHMENT OF THE NEXT GENERATION OF CELLULARTELEPHONE SERVICE THE OPENING OF LOCAL PHONE MONOPOLIES TO COMPETITION AND GREATER DEREGULATION OF AMERICAN TELEPHONE & TELEGRAPH CO IN ADDITION THE COMMISSION MUST SOON TACKLE TOUGH ISSUES RAISED BY RECENT APPEALSCOURT DECISIONS ONE ORDER SCRAPPED FCC RULES INSTITUTED IN 1991 THAT SLIGHTLY EASED TELEVISION NETWORKS' ABILITY TO TAKE A FINANCIAL INTEREST IN THE SHOWS THEY BROADCAST AND TO PARTICIPATE IN THE LUCRATIVE RERUN BUSINESS THE NETWORKS AND THEIR CHIEF OPPONENTS IN THIS MATTER THE HOLLYWOOD STUDIOS ARE PREPARING LOBBYING OFFENSIVES THAT THE CLINTON FCC IS CERTAIN TO FIND IRKSOME ANOTHER COURT DECISION REJECTED THE FCC'S PRACTICE OF NOT REQUIRING AT&T'S COMPETITORS TO FILE RATES WITH THE AGENCY THIS TOO COULD RESULT IN A NASTY FIGHT THE CLINTON TEAM IS LOOKING FOR WAYS TO SPUR BANK LENDING WITHOUT COMPROMISING THE BANKING SYSTEM'S MARCH BACK TO FINANCIAL HEALTH AFTER A DECADE OF PROBLEMS BOTH THE ADMINISTRATION AND THE INDUSTRY WANT TO ENCOURAGE LESSRIGID EXAMINATION PROCEDURES THAT WILL GIVE SOUND BANKS MORE LENDING LEEWAY IN ADDITION THE NEW ADMINISTRATION WILL PROMOTE MEASURES TO ENCOURAGE COMMUNITY DEVELOPMENT AND SMALLBUSINESS LENDING BECAUSE THE WORST OF THE BANKING CRISIS APPEARS TO BE OVER MR CLINTON'S BANK REGULATORS MAY SHOW SOME FLEXIBILITY IN DRAFTING REGULATIONS UNDER THE 1991 BANKING LAW TO ADDRESS SUCH ISSUES AS INTERESTRATE RISK AND AUDITING STANDARDS IT'S UNLIKELY THOUGH THAT CONGRESS WILL BE WILLING TO MAKE MAJOR CHANGES IN THE LAW THAT IMPOSES ADDITIONAL LAYERS OF SAFETY AND SOUNDNESS REGULATION ON BANKS AS FOR ANY NEW AUTHORITY ALLOWING BANKS TO SET UP INTERSTATE BRANCH NETWORKS OR OFFER NEW SERVICES CONGRESS AND THE ADMINISTRATION ARE LIKELY TO TIE SUCH PRIVILEGES TO FIRM NEW DEVELOPMENTLENDING COMMITMENTS ALTHOUGH NO SEATS ON THE COMMISSION ARE DUE TO OPEN UNTIL NEXT YEAR MR CLINTON CAN APPOINT A NEW CHAIRMAN MOREOVER HIS ANTITRUST ENFORCERS MAY PURSUE NOVEL USES OF A BROADLY DEFINED FTC LAW AGAINST UNFAIR COMPETITION AND THE COMMISSION MAY SUPPORT LEGISLATION THAT WOULD MAKE IT EASIER TO PROVE VERTICAL PRICE FIXING IT OPPOSED SUCH A MEASURE UNDER THE BUSH ADMINISTRATION DEMOCRATSPONSORED LEGISLATION TO END THE INSURANCE COMPANIES' CURRENT EXEMPTION FROM FEDERAL ANTITRUST LAWS WILL LIKELY GET SUPPORT FROM THE CLINTON WHITE HOUSE ALSO THE MERGER GUIDELINES THAT THE FTC AND THE JUSTICE DEPARTMENT RELEASED LAST APRIL MAY BE REVISED TO MAKE IT MORE LIKELY THE GOVERNMENT WILL CHALLENGE MERGERS THAT WOULD RESULT IN LESSENED COMPETITION A RELATIVELY NEW ISSUE THAT COULD BECOME CONTROVERSIAL BUT THAT MAY GET SUPPORT FROM THE CLINTON ADMINISTRATION IS GREEN LABELING LEGISLATION OF THIS SORT WOULD DETAIL HOW COMPANIES MUST DESCRIBE THE ENVIRONMENTAL IMPACT OF THEIR PRODUCTS FOOD AND DRUG COMPANIES WILL PRESS THE CLINTON ADMINISTRATION TO FURTHER SPEED THE APPROVAL PROCESS FOR NEW PRODUCTS MAKERS OF MEDICAL DEVICES IN PARTICULAR WORRY THAT THE FDA WILL MOVE SLOWLY IN THE WAKE OF CONTROVERSIES OVER BREAST IMPLANTS AND HEART VALVES IN RECENT YEARS BIOTECHNOLOGY WILL BE A FOCUS THE VOLUME OF APPLICATIONS FOR APPROVAL OF GENETICALLY ENGINEERED PRODUCTS IS GROWING BUT CONSUMER AND ENVIRONMENTAL OPPOSITION TO THESE PRODUCTS IS EVER PRESENT THE DRUG INDUSTRY WILL LOOK FOR EARLY SIGNS AS TO WHETHER THE NEW ADMINISTRATION WILL CONTINUE THE FDA'S CRACKDOWN ON OVERLY AGGRESSIVE PROMOTIONS BY COMPANIES ENFORCING THE SWEEPING NEW NUTRITIONLABELING REQUIREMENTS FOR FOOD PRODUCTS NOW ALSO FALLS TO THE NEW ADMINISTRATION CONGRESSIONAL DEMOCRATS WILL PUSH THE AGENCY TO EXTEND THE RULES TO ADDITIONAL PRODUCTS AS WELL AS TO RESTAURANTS THE AGENCY ALSO FACES THE CONTROVERSIAL ISSUE OF NEW LABELING REQUIREMENTS FOR VITAMINS AND OTHER DIETARY SUPPLEMENTS GIVEN THE NEW VICE PRESIDENT'S STRONG INTEREST IN THE ENVIRONMENT TOUGHER ENVIRONMENTALLAW ENFORCEMENT IS LIKELY WITH MOREAGGRESSIVE PROSECUTION OF THE BIG VIOLATORS THE BUSH ADMINISTRATION WAS HIT WITH COMPLAINTS THAT IT REFUSED TO PURSUE ENVIRONMENTALLAW VIOLATORS ADEQUATELY AND THIS IS A SITUATION THE CLINTON TEAM WILL WORK HARD TO AVOID AS WITH THE FTC THE NEW ADMINISTRATION WILL TAKE AN ACTIVIST APPROACH HERE TO ANTITRUST ENFORCEMENT ALL THE WHILE KEEPING AN EYE ON GLOBAL COMPETITIVENESS REDUCTIONS IN THE PENTAGON BUDGET WILL CONTINUE TO GENERATE MERGERS IN THE DEFENSE INDUSTRY AN AREA TO WHICH ANTITRUST OFFICIALS WILL GIVE SPECIAL ATTENTION MR CLINTON'S PROPOSAL TO FUND 100000 ADDITIONAL POLICE OFFICERS COULD AT LEAST CONCEIVABLY EASE THE CRIME PROBLEMS FACING BUSINESS PARTICULARLY THE STREET CRIME THAT STRIKES RETAILERS ON ANOTHER LEVEL THE PLAN TO DEVELOP TREATMENT ON DEMAND FOR DRUG ADDICTS COULD HELP TO ADDRESS THE PERSONNEL AND STAFFING DIFFICULTIES THAT ADDICTION CAUSES AT THE TOP OF THE CLINTON LABOR DEPARTMENT'S AGENDA WILL BE A SEARCH FOR WAYS TO KEEP CAMPAIGN PROMISES ABOUT JOB CREATION AND TRAINING EARLY IN THE CONGRESSIONAL SESSION LAWMAKERS WILL PUSH A BILL REQUIRING COMPANIES TO SPEND AT LEAST 15 OF THEIR PAYROLL ON TRAINING WORKERS SECRETARYDESIGNATE ROBERT REICH IS EAGER TO BRING CORPORATE GROUPS TOGETHER WITH LABOR TO FIND ALTERNATIVES TO THAT MANDATE THE DEPARTMENT WILL BE A CENTER OF TENSION BETWEEN THOSE WHO WANT TO STRENGTHEN ORGANIZED LABOR AND THOSE WHO THINK UNIONS ARE DINOSAURS THAT HINDER THE PROGRESS OF AMERICAN COMPANIES FOR EXAMPLE DEPARTMENT OFFICIALS THE NATIONAL LABOR RELATIONS BOARD AND CONGRESS WILL ALL LIKELY GRAPPLE THIS YEAR WITH THE QUESTION WHEN ARE INCREASINGLY POPULAR MANAGEMENTWORKER TEAMS MERELY ILLEGAL SURROGATES OF ORGANIZED LABOR THE MINIMUM WAGE IS A CERTAIN TOPIC FOR CONSIDERATION WITH PRESIDENT CLINTON EXPECTED TO PRESS FOR INDEXING OTHER CRITICAL ISSUES SURE TO BE REVIEWED BY LABOR AND ITS DIVISIONS INCLUDE THE TROUBLES OF PARTTIME WORKERS WOMEN'S EQUALITY IN THE WORKPLACE AND THE PROBLEMS OF THE PENSION BENEFITS GUARANTY CORP THE SEC IS COMING OFF ITS MOST ACTIVIST PERIOD SINCE THE 1970S IN THE PAST THREE YEARS IT HAS STRUCK BLOWS FOR SHAREHOLDER RIGHTS AND AGAINST EXECUTIVE PAY AND WON NEW LEGISLATION STRONGLY BEEFING UP ITS ENFORCEMENT POWERS EARLY IN THE CONGRESSIONAL SESSION LAWMAKERS WILL PRESS TO GIVE THE AGENCY NEW POWERS OVER THE GOVERNMENTSECURITIES MARKET THE AGENCY ALSO IS EXPECTED TO FIGHT THE SECURITIES INDUSTRY FOR TOUGH NEW ENFORCEMENT MUSCLE AGAINST FINANCIAL PLANNERS SHAREHOLDER GROUPS WILL CONTINUE TO PUSH THE SEC FOR A MORE BALANCED PLAYING FIELD WITH CORPORATE MANAGEMENTS THE AGENCY'S CHALLENGE WILL BE TO KEEP BOTH COMPANIES AND BIG INVESTORS HAPPY A MAJOR REPORT DUE OUT THIS SPRING WILL PRODUCE THE AGENCY'S FIRST SIGNIFICANT REVIEW OF ELECTRONIC SECURITIES MARKETS AND MAY OFFER GUIDELINES FOR HOW THEY CAN COMPETE WITH THE NEW YORK STOCK EXCHANGE AND OTHERS BUT PERHAPS THE MOST NAGGING ISSUE FOR THE AGENCY IS ONE THAT CAN'T BE RESOLVED INTERNALLY HOW TO MERGE THE RESPECTIVE DUTIES OF THE SEC AND THE COMMODITY FUTURES TRADING COMMISSION WITH REGARD TO SECURITIESRELATED PRODUCTS IN A WAY THAT MAKES THE MARKETS SAFER IT'S A PUZZLE CONGRESS WILL HAVE TO SOLVE LIKELY IN THE FACE OF OPPOSITION FROM THE AGRICULTURE COMMITTEES IN LIGHT OF HIS INEXPERIENCE IN THIS FIELD BUSINESS WILL BE WATCHING CLOSELY TO SEE WHOM MICKEY KANTOR THE MAN NAMED AS TRADE REPRESENTATIVE WILL CHOOSE AS HIS DEPUTIES AND WHO ELSE IN THE ADMINISTRATION WILL WIELD POWER OVER TRADE POLICIES THE QUESTION IS ALL THE MORE URGENT BECAUSE THE NEW ADMINISTRATION FACES HIGHSTAKES NEGOTIATIONS IN THIS AREA IMMEDIATELY THE CLINTON TEAM MUST PUSH HARD TO WRAP UP TALKS BY MARCH 1 REGARDING THE GENERAL AGREEMENT ON TARIFFS AND TRADE OTHERWISE IT WILL NEED TO WIN AN EXTENSION OF ITS SOCALLED FASTTRACK AUTHORITY UNDER WHICH CONGRESS IS ALLOWED TO VOTE FOR OR AGAINST A TRADE ACCORD BUT CAN'T MAKE CHANGES ALTHOUGH AN EXTENSION WOULD LIKELY BE GRANTED IT IS ALSO LIKELY THAT CONGRESS WOULD ASK FOR SOMETHING IN RETURN MEANWHILE THE TALKS IN GENEVA ARE KICKING UP OPPOSITION FROM INFLUENTIAL US LOBBIES INCLUDING MOVIES TEXTILES STEEL AND SEMICONDUCTORS AS WELL AS FROM THE FRENCH AND JAPANESE AT THE SAME TIME THE CLINTON ADMINISTRATION HAS SAID IT WILL NEGOTIATE SIDE DEALS TO THE NORTH AMERICAN FREE TRADE AGREEMENT THE TALKS SURROUNDING THESE DEALS WHICH WOULD TOUCH ON SUCH ISSUES AS THE ENVIRONMENT LABOR STANDARDS AND ENFORCEMENT PROCEDURES ARE CERTAIN TO SPARK CONTROVERSY AMONG ENVIRONMENTAL GROUPS AND UNIONS THE TRADE REPRESENTATIVE'S OFFICE WILL ALSO BE UNDER PRESSURE TO FOLLOW UP ON A SEMICONDUCTOR PACT IN WHICH JAPAN AGREED TO MAKE 20 OF ITS SEMICONDUCTOR PURCHASES IN 1992 FROM FOREIGN SOURCES DURING THE THIRD QUARTER OF LAST YEAR IMPORTS ACCOUNTED FOR ONLY ABOUT 16 OF THE TOTAL AND THE ADMINISTRATION WANTS AS WELL TO CONCLUDE INTERNATIONAL STEEL TALKS THAT WOULD PROTECT US STEEL MAKERS IT COULD THEN TERMINATE POLITICALLY CHARGED ANTIDUMPING AND SUBSIDY CASES BROUGHT BY THE STEEL INDUSTRY AIRLINE OFFICIALS WILL BE LOOKING TO THE CLINTON TEAM FOR HELP IN THE GLOBAL DOGFIGHT FOR MARKET SHARE THEY WANT MORE BILATERAL OPEN SKY PACTS AIMED AT OPENING UP FOREIGN MARKETS TO US CARRIERS THEY WILL ALSO BE SEEKING ANTITRUST CLEARANCE FOR MORE MERGERS AND JOINT OPERATING AGREEMENTS THE NEW ADMINISTRATION WILL BE PRESSED BY THE AIRLINE AND MARITIME INDUSTRIES FOR REGULATORY AND TAX RELIEF THE TWO BIGGEST US STEAMSHIP LINES ARE THREATENING TO REGISTER THEIR FLEETS OVERSEAS UNLESS WORK RULES AND SUBSIDYRELATED RESTRICTIONS ARE EASED TRANSPORTATION OFFICIALS WILL BE PREOCCUPIED WITH MAKING GOOD ON PRESIDENT CLINTON'S CAMPAIGN PLEDGE TO REBUILD AMERICA'S INFRASTRUCTURE THEY FACE A CLAMOR OF COMPETING PLEAS FROM THE HIGHWAY TRANSIT AND AIRPORT LOBBIES FOR BILLIONS IN FEDERAL DOLLARS THEY ALSO WILL HAVE TO ADDRESS SEVERAL AVIATION AND AUTOSAFETY ISSUES INCLUDING AN INQUIRY INTO FATAL FIRES INVOLVING GENERAL MOTORS CORP PICKUP TRUCKS WHEN MR CLINTON TALKS TAXES THE TREASURY LISTENS AS THE REPOSITORY OF TAX EXPERTISE IN THE EXECUTIVE BRANCH THE TREASURY NOW MUST FASHION SPECIFIC LEGISLATION OUT OF MR CLINTON'S SOMETIMES VAGUE TAX PROPOSALS AND HELP HIM COME UP WITH THE TAX INCREASES OR LOOPHOLE CLOSERS HE WILL NEED TO REDUCE THE DEFICIT BECAUSE THE NEW PRESIDENT'S CAMPAIGN RELIED ON SOME QUESTIONABLE FIGURES SUCH AS HIS EXPECTATION OF SQUEEZING 45 BILLION MORE TAX REVENUE FROM FOREIGN COMPANIES OVER FOUR YEARS TREASURY'S ESTIMATES WILL BE WATCHED PARTICULARLY CAREFULLY TREASURY SECRETARYDESIGNATE LLOYD BENTSEN HAS EMPHASIZED THE NEED TO REASSERT US LEADERSHIP IN THE GROUP OF SEVEN THE COUNCIL OF FINANCE MINISTERS AND CENTRAL BANKERS FROM THE WORLD'S LARGEST INDUSTRIALIZED NATIONS WHO MEET PERIODICALLY TO ATTEMPT TO COORDINATE ECONOMIC POLICIES UNLESS THE ECONOMIES OF JAPAN AND EUROPE PERK UP THE US WILL FIND IT INCREASINGLY DIFFICULT TO SUSTAIN THE EXPORTS THAT ARE CRUCIAL TO GROWTH AT HOME THE JOB OF THE TREASURY WITH THE HELP OF THE FEDERAL RESERVE IS TO PERSUADE FOREIGN GOVERNMENTS TO DO WHAT'S NEEDED TO REIGNITE THE ENGINES OF GROWTH MEANWHILE THE NEW TREASURY LEADERSHIP NEEDS TO PERSUADE CONGRESS TO DO WHAT IT WAS UNWILLING TO DO LAST YEAR AUTHORIZE ADDITIONAL SPENDING ON THE SAVINGSANDLOAN CLEANUP SO THAT THE GOVERNMENT CAN PAY OFF DEPOSITS WHEN IT CLOSES OR SELLS THRIFTS 9301200035 930120 WHAT'S NEWS BUSINESS AND FINANCE IBM POSTED ITS FIRSTEVER OPERATING LOSS CLOSING OUT A DISASTROUS YEAR WITH A 546 BILLION FOURTHQUARTER DEFICIT THAT HIGHLIGHTED THE DEPTH OF THE COMPUTER MAKER'S WOES ANALYSTS WERE PARTICULARLY WORRIED BY TROUBLE SIGNS IN ITS HUGE MINICOMPUTER LINE THE RESULTS HOLD LITTLE PROMISE THAT CHAIRMAN JOHN AKERS WILL SEE ANY RELIEF FROM PRESSURES BY INVESTORS ITT TOOK NEARLY 1 BILLION IN ONETIME CHARGES TO RESTRUCTURE ITS ITT FINANCIAL UNIT'S OPERATIONS THE CHARGES WILL RESULT IN A 612 MILLION AFTERTAX CHARGE FOR THE 1992 FOURTH QUARTER TRADE REPRESENTATIVEDESIGNATE KANTOR TOOK AN AGGRESSIVE STANCE TOWARD TRADE RELATIONS WITH EUROPE AND JAPAN AS THE SENATE FINANCE PANEL UNANIMOUSLY APPROVED HIS APPOINTMENT CITICORP REPORTED FOURTHQUARTER EARNINGS OF 280 MILLION EXCEEDING EXPECTATIONS THE BANKING CONCERN SAID ITS TWOYEAR PLAN TO STRENGTHEN ITS FINANCIAL POSITION HAS BEEN COMPLETED THE RESULTS PROMPTED S&P TO CHANGE ITS OUTLOOK ON THE COMPANY TO STABLE WELLS FARGO STOCK SOARED 15 ON SHARPLY IMPROVED RESULTS REFLECTING INVESTOR HOPES THAT THE REAL ESTATE DEBACLE IS ENDING FOR CALIFORNIA BANKS AND THRIFTS A NUMBER OF OTHER BIG BANKS ALSO TURNED IN STRONG RESULTS BOND PRICES SURGED BUT FAILED TO CARRY THE MAJOR STOCK MARKET INDEXES HIGHER THE DOW JONES INDUSTRIALS LOST 1892 TO 325599 THE DOLLAR FELL KODAK EXPECTS SLOWER GROWTH IN ITS CORE PHOTOGRAPHY BUSINESS AS A RESULT THE COMPANY WILL ELIMINATE MANY RELATED RESEARCH EFFORTS AS WELL AS RESTRUCTURE SOME OVERSEAS OPERATIONS PAINEWEBBER POSTED A 12 DROP IN FOURTHQUARTER EARNINGS AS REVENUE FROM TRADING AND INVESTMENT BANKING DECLINED THE RESULTS MAY SIGNAL A SLOWING OF WALL STREET'S PROFIT BOOM GERMANY UNVEILED AN ECONOMIC PLAN THAT ENVISIONS NEW TAXES AFTER 1995 AND CUTS IN ONCESACRED SOCIAL PROGRAMS THE MOVE REFLECTS A DEEPENING RECESSION AND THE COSTS OF REBUILDING THE EASTERN PART OF THE COUNTRY FRENCH STATE DRUG MAKER ELF SANOFI PLANS TO ACQUIRE CONTROL OF YVES SAINT LAURENT THE FRENCH FASHION AND PERFUME CONCERN THROUGH A SHARE SWAP ADVANCED MICRO AND HEWLETTPACKARD WILL COLLABORATE ON DEVELOPING A NEW CHIPMAKING PROCESS THAT WILL VASTLY INCREASE THE NUMBER OF TRANSISTORS THAT CAN FIT ON A COMPUTER CHIP AT&T CHANGED THE LEADERSHIP AT ITS CONSUMER PHONE EQUIPMENT UNIT A SHIFT THAT ANALYSTS SAID MEANS AT&T WILL GET TOUGHER WITH JAPANESE RIVALS BRITISH AEROSPACE AND TAIWAN AEROSPACE SIGNED THEIR LONGAWAITED JOINT VENTURE TO BUILD THE BRITISH COMPANY'S FAMILY OF REGIONAL AIRCRAFT THE CBOE INTRODUCED AN INDEX TO TRACK VOLATILITY IN THE STOCK MARKET THE EXCHANGE SAID IT HOPES TO UNVEIL OPTIONS CONTRACTS BASED ON MARKET VOLATILITY WITHIN A FEW MONTHS GERMANY'S THYSSEN REPORTED A STEEP DROP IN FISCAL 1992 EARNINGS AT ITS SPECIALTY STEEL AND BASIC STEEL DIVISIONS AND PLANS TO CUT 8000 JOBS STRIDE RITE POSTED AN 83 EARNINGS DECLINE IN ITS FOURTH QUARTER REFLECTING SLOWING GROWTH OF ITS KEDS SHOES AND A ONETIME 111 MILLION CHARGE TOKYO STOCKS CLIMBED 11 IN TECHNICAL FUTURESLED DEALINGS WITH THE NIKKEI GAINING 18140 TO 1679864 LONDON EQUITIES DECLINED SHARPLY BONDS LEHMAN BROTHERS TREASURY INDEX 476149 UP 2565 COMMODITIES OIL 1858 A BARREL OFF 29 CENTS DOW JONES FUTURES INDEX 12228 OFF 029 SPOT INDEX 12375 UP 012 DOLLAR 12545 YEN OFF 005 16110 MARKS OFF 00025 9301200034 930120 TUESDAY'S MARKETS BONDS GAIN BUT THE DOW FALLS 1892 TREASURY PRICES JUMP AS INVESTORS HOPE FOR TIGHTER SUPPLY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES SURGED BUT FAILED TO CARRY THE MAJOR STOCK MARKET INDEXES HIGHER THE DOLLAR FELL THOUGH MORE STOCKS ROSE THAN FELL IN HEAVY NEW YORK STOCK EXCHANGE TRADING THE DOW JONES INDUSTRIAL AVERAGE LOST 1892 POINTS TO 325599 STANDARD & POOR'S 500STOCK INDEX FELL 171 TO 43513 AND THE NASDAQ COMPOSITE INDEX SLID 132 TO 69681 PRICES OF THE TREASURY'S BENCHMARK 30YEAR ISSUE JUMPED 5/8 POINT TRADERS SAID INVESTORS WERE BETTING THE NEW CLINTON ADMINISTRATION WOULDN'T SELL AS MANY TREASURY BONDS THUS REDUCING SUPPLY INDEED SOME SPECULATED THAT TREASURY SECRETARYDESIGNATE LLOYD BENTSEN WILL CUT THE NUMBER OF 30YEAR BONDS AT THE QUARTERLY REFUNDING IN FEBRUARY TRADERS ALSO NOTED CONTINUED OPTIMISM AMONG INVESTORS OVER LAST WEEK'S REPORT OF A TINY INCREASE IN CONSUMER PRICES IN 1992 ANALYSTS SAID STOCK MARKET INVESTORS DUMPED DRUG STOCKS AND RUSHED INTO BANK ISSUES THERE'S A LOT OF SWITCHING GOING ON SAID MICHAEL SHERMAN CHIEF INVESTMENT STRATEGIST AT SHEARSON LEHMAN BROTHERS DRUG STOCKS SANK AFTER THE WALL STREET JOURNAL REPORTED THAT ANALYSTS SUGGEST THE OUTLOOK STILL LOOKS BLEAK FOR THE BEATENDOWN SECTOR BANKS' PROSPECTS MEANWHILE BRIGHTENED WITH SHARPLY IMPROVED EARNINGS FROM WELLS FARGO THE ROSY PROFIT REPORT LIFTED WELLS FARGO 13 OR 151 TO 99 BANKAMERICA JUMPED 3 7/8 OR 76 TO 53 3/8 AND FIRST INTERSTATE BANCORP ROSE 2 1/8 OR 43 TO 52 NEARLY 25 POINTS OF THE DOW JONES INDUSTRIALS' DECLINE CAME FROM INTERNATIONAL BUSINESS MACHINES WHICH SLID 1 1/8 OR 23 TO 48 3/8 ON THE NEW YORK STOCK EXCHANGE THE COMPUTER MAKER REPORTED A LARGE FOURTHQUARTER LOSS ALAN NEWMAN TECHNICAL ANALYST AT HD BROUS & CO SAID THE STOCK MARKET IS HEADING FOR A SHORTTERM CORRECTION IN THE TWOYEAROLD BULL MARKET HE PREDICTED THE S&P 500 WILL SLIDE 15 BY MIDMARCH WE ARE YET TO SEE A CORRECTION OF MORE THAN 10 IN THE BULL MARKET THAT BEGAN IN OCTOBER 1990 MR NEWMAN SAID WE'RE RIPE FOR ONE HE NOTED THE SHARP ADVANCE IN OVERTHECOUNTER STOCK PRICES AND THE EUPHORIA GREETING THE CLINTON ADMINISTRATION HE SAID OPTIMISTIC INVESTORS WERE BUYING MANY MORE CALL OPTIONS WHICH GO UP IF THE MARKET RISES THAN PUT OPTIONS WHICH GO UP IF THE MARKET FALLS PUT BUYING IS LESS THAN HALF WHAT IT WAS A YEAR AGO AND THAT TELLS ME THAT NO ONE IS WILLING TO PLAY THE DOWNSIDE MR NEWMAN SAID SO THE DOWNSIDE WILL HAPPEN STEFAN ABRAMS DIRECTOR OF EQUITY STRATEGY AT TRUST CO OF THE WEST IS LESS GLOOMY OVERALL THE MARKET WILL CONTINUE TO HAVE AN UPWARD BIAS BUT NOW IT'S A MATTER OF CHOOSING THE RIGHT SECTORS AND STOCKS HE SAID THE KEY TO 1993 INVESTMENT PERFORMANCE IS TO FIND COMPANIES THAT HAVE BRIGHT OUTLOOKS FOR 1994 BECAUSE 1993 EARNINGS WON'T BE SUFFICIENT WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX WAS DOWN 002 TO 9193 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2831 MILLION SHARES ON THE BIG BOARD WHERE 979 ISSUES ROSE AND 877 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE MORE THAN 1/2 POINT OR OVER 5 FOR EACH 1000 FACE AMOUNT TO YIELD 730 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16110 MARKS AND 12545 YEN COMPARED WITH 16135 MARKS AND 12550 YEN MONDAY 9301200033 930120 WHY I ENVY CLINTON BY GERALD R FORD JANUARY IS THE MONTH WE LOOK BOTH FORWARD AND BACK AHEAD I SEE A YOUNG AMERICAN ABOUT TO BECOME OUR COMMANDER IN CHIEF WHO WAS BORN IN THE YEAR I WAS TRYING TO BECOME A CIVILIAN INSTEAD OF A SALTY NAVY LIEUTENANT I ENVY HIM HE HAS HAD TWO MONTHS TO THINK ABOUT HIS NEW JOB HE HAS A CLEAR IF NOT MASSIVE MANDATE AND HE HAS FOUR MORE YEARS TO GET THE JOB DONE IN 1974 I WOULD HAVE WELCOMED ANY TWO OF THE ABOVE NO LESS THAN THOSE WHO GAVE HIM THEIR HOPES AND THEIR VOTES I WISH PRESIDENTELECT CLINTON WELL I WILL REFRAIN FROM SECONDGUESSING HIM BEFORE HE STARTS THOUGH I CAN'T PROMISE HOW LONG MY MELLOW MOOD WILL LAST LOOKING BACK WHICH IS EASIER I FIND MYSELF FOCUSING ON 1964 WHICH WAS A VERY BAD YEAR FOR THE REPUBLICAN PARTY THE 1960 KENNEDYNIXON RACE WAS EXCRUCIATINGLY CLOSE BUT MIDTERM ELECTIONS IN 1962 COINCIDED WITH THE CUBAN MISSILE CRISIS AND SLIGHTLY STRENGTHENED DEMOCRATIC MAJORITIES IN BOTH THE HOUSE AND SENATE THEN IN 1964 A TIDAL WAVE OF SHOCK AND SYMPATHY FOLLOWING PRESIDENT KENNEDY'S ASSASSINATION CARRIED LBJ TO A LANDSLIDE VICTORY RIVALING FDR'S BIGGEST PRESIDENT JOHNSON WON 486 ELECTORAL VOTES TO BARRY GOLDWATER'S 52 THE ONCE GRAND OLD PARTY HUNG ONTO ONLY 17 GOVERNORSHIPS SENATE REPUBLICANS DWINDLED TO 32 IN THE HOUSE REPUBLICANS LOST 37 SEATS REDUCING US TO A REAR GUARD OF 140 THE TINIEST LOYAL OPPOSITION SINCE EARLY NEW DEAL DAYS AS THE 89TH CONGRESS MET IN JANUARY 1965 THESE EMBATTLED SURVIVORS BY A RINGING MARGIN OF SIX VOTES ELECTED ME THEIR MINORITY LEADER MY PRESS GALLERY FRIENDS KEPT ASKING FOR MY CONCEPT OF THE MINORITY PARTY'S ROLE I DECIDED TO JUNK THE OLD GUARD DICTUM THAT THE DUTY OF THE OPPOSITION IS TO OPPOSE I CHEERFULLY REPLIED THAT THE PRIMARY PURPOSE OF THE MINORITY IS TO BECOME THE MAJORITY I STILL BELIEVE THAT FOR THE NEXT TWO YEARS AT LEAST MR CLINTON WILL DEAL WITH A HOUSE AND SENATE ORGANIZED BY MEMBERS OF HIS OWN PARTY THIS ADVANTAGE WAS ENJOYED BY POSTWAR DEMOCRATIC PRESIDENTS FOR A TOTAL OF 17 YEARS BUT DURING A TOTAL OF 28 YEARS OF GOP PRESIDENCIES FROM EISENHOWER THROUGH BUSH THERE HAS BEEN ONLY ONE REPUBLICAN CONGRESS PLUS PRESIDENT REAGAN'S SIXYEAR GOP SENATE MAJORITY PRESIDENTS NIXON BUSH AND I DEALT WITH DEMOCRATIC CONGRESSES THROUGHOUT OUR TOTAL OF 12 YEARS CAUSING SOME TO WONDER WHETHER THE AMERICAN ELECTORATE HAD INDIRECTLY ADDED AN EXTRA CHECK AND BALANCE TO THOSE MANDATED BY THE CONSTITUTION MR CLINTON WILL CERTAINLY BASK IN AN INITIAL HONEYMOON WITH A FRIENDLY CONGRESS HE HAD BETTER ENJOY IT WHILE IT LASTS BECAUSE OF THE PEROT FACTOR MANY OF THE SURVIVING DEMOCRATS ON CAPITOL HILL RAN STRONGER IN 1992 THAN THEIR PRESIDENTIAL CANDIDATE THOSE IN THE HOUSE HAVE TO RUN AGAIN NEXT YEAR AND BELIEVE ME THEY KNOW ALL THE WICKED WASHINGTON WAYS TO PASS THE HARD CALLS TO THE WHITE HOUSE ONE HEARS OF PLANS BY SPEAKER THOMAS FOLEY AND SEN GEORGE MITCHELL TO GRANT MR CLINTON AN ENHANCED RESCISSION AUTHORITY IN LIEU OF THE LINEITEM VETO BOTH HE AND PRESIDENT BUSH ADVOCATED THIS WOULD LET A PRESIDENT STRIKE BUDGETBUSTING ITEMS FROM AN APPROPRIATIONS BILL BUT CONGRESS COULD RESTORE ANY CUT BY A SIMPLE MAJORITY AS HUBERT HUMPHREY ONCE TOLD ME WHAT THE CONGRESS GIVETH THE CONGRESS CAN ALSO TAKETH AWAY IT WON'T DO I FAVOR THE CONCEPT OF A LINEITEM VETO BUT TO RESOLVE CONSTITUTIONAL QUESTIONS IT SHOULD BE APPROVED BY A CONSTITUTIONAL AMENDMENT HOWEVER BY THE TIME THIS COULD GET THROUGH TWOTHIRDS OF BOTH HOUSES OF CONGRESS AND 38 STATE LEGISLATURES FORMER PRESIDENT CLINTON WOULD BE BUILDING HIS PRESIDENTIAL LIBRARY IN LITTLE ROCK THE EASIEST WAY TO GET A QUICK GRIP ON OUR RUNAWAY FEDERAL DEFICIT IS FOR THIS NEW CONGRESS TO REPEAL BY SIMPLE MAJORITIES THE ANTIIMPOUNDMENT PROVISIONS OF THE 1974 BUDGET REFORM ACT WHICH COULD BE DONE IN A COUPLE OF HOURS THIS WOULD ALLOW THE PRESIDENT TO IMPOUND ANY APPROPRIATED FUNDS HE CONSIDERS UNNECESSARY OR EXCESSIVE THAT IS LET THEM STAY ON THE BOOKS WHILE REFUSING TO SPEND THEM WHAT BETTER WAY TO TEST MR CLINTON'S CLOUT ON CAPITOL HILL AND HIS VOW TO CUT THE COST OF GOVERNMENT I HOPE HE WINS AND IF THAT HELPS THE OTHER PARTY SO BE IT PARTY POSITIONS IN CONGRESS HAVE LIVES OF THEIR OWN BUT WHEN ONE PARTY LOSES THE PRESIDENCY IT HAS NO CONTINUING FORMAL STRUCTURE TO CREATE A NATIONAL PARTY CONSENSUS OR DIRECT A COHERENT PLAN TO REGAIN NATIONAL LEADERSHIP EFFORTS TO PRESENT A UNITED FRONT EITHER FOUNDER ON THE SHOALS OF RIVAL PERSONAL AMBITIONS OR FALL PREY TO THE BEST ORGANIZED AND MOST AGGRESSIVE FACTION USUALLY FROM ONE EXTREME OR ANOTHER WHEN SUCH EXTREMISTS SEIZE CONTROL IT LEADS THE PARTY TO A RESOUNDING AND GLORIOUS DISASTER AT THE POLLS I DON'T WANT THIS TO HAPPEN TO MY PARTY IN 1993 OR 1994 IN 1965 WE REPUBLICANS FORTUNATELY HAD TWO MAJOR ASSETS TO FALL BACK ON THE JOINT GOP LEADERSHIP OF THE CONGRESS IS BEST REMEMBERED AS SPONSOR OF THE WEEKLY EV AND CHARLIE SHOW A TELECAST NEWS CONFERENCE BY OUR MELLIFLUOUS LEADER IN THE SENATE EVERETT MCKINLEY DIRKSEN AND MY PREDECESSOR IN THE HOUSE REP CHARLES HALLECK OF INDIANA SENSING RESTLESSNESS AND UNCERTAINTY AMONG THE PARTY TROOPS THE JOINT LEADERSHIP MOVED SWIFTLY TO PREEMPT ANY ATTEMPTED TAKEOVER OF THE GOP LEADERSHIP BY DEFAULT ON JAN 11 A MERE WEEK AFTER I REPLACED REP HALLECK SEN DIRKSEN AND I LAUNCHED WHAT CAME TO BE THE NATIONAL REPUBLICAN COORDINATING COMMITTEE THIS BROUGHT TOGETHER UNDER ONE TENT OUR HOUSE AND SENATE LEADERSHIP NINE REPRESENTATIVES AND SEVEN SENATORS NINE MEMBERS OF THE REPUBLICAN GOVERNORS ASSOCIATION INCLUDING SUCH PRESIDENTIAL WANNABES AS NELSON ROCKEFELLER GEORGE ROMNEY AND RONALD REAGAN THE NATIONAL CHAIRMAN AND FIVE OFFICERS OF THE REPUBLICAN NATIONAL COMMITTEE THE PRESIDENT OF THE REPUBLICAN STATE LEGISLATORS ASSOCIATION ALL THE PARTY'S LOSING STANDARDBEARERS ALF LANDON THOMAS DEWEY RICHARD NIXON AND BARRY GOLDWATER AND FORMER PRESIDENT EISENHOWER IKE WAS STILL THE MOST POPULAR AMERICAN ALIVE AND AFTER COMPLETING HIS TWO TERMS HE HAD BECOME MORE UNABASHEDLY POLITICAL AND EAGERLY PARTISAN IKE ENCOURAGED OUR EFFORT AND DEVOTEDLY MADE THE PILGRIMAGE FROM GETTYSBURG TO OUR QUARTERLY MEETINGS FOR WHICH HE ACTED AS SPOKESMAN ALSO DRIVING THAT DIVERSE COLLECTION OF PRIMA DONNAS TOWARD A NATIONAL REPUBLICAN CONSENSUS WAS RAY BLISS OF OHIO THE NEW NATIONAL CHAIRMAN WHO SET UP A SCORE OF TASK FORCES COMBINING THE TALENTS OF ACADEMIC AND PRIVATESECTOR EXPERTS AND GOP OFFICIALS AT ALL LEVELS WE CALLED THEIR RECOMMENDATIONS CONSTRUCTIVE REPUBLICAN ALTERNATIVE PROGRAMS WHICH OUR CRITICS SOON SHORTENED TO ITS ACRONYM BY THE BEGINNING OF THE 1968 CAMPAIGN THESE TASK FORCES HAD PRODUCED SOME 70 POLICY REPORTS TO WHICH ALL ELEMENTS OF THE PARTY LEADERSHIP PUBLICLY SUBSCRIBED THIS MADE NEWS AND IN EFFECT SUPERSEDED THE PARTY PLATFORM A CONVENTION SIDESHOW THAT HAD LONG OUTLIVED ITS USEFULNESS AND IN 1992 WAS A REAL BUMMER REPUBLICANS IN 1966 INCREASED THEIR HOUSE MINORITY FROM 140 TO 187 GAINED THREE SENATE SEATS NINE GOVERNORS 503 STATE LEGISLATORS AND PUT THE 1964 DEBACLE FIRMLY BEHIND THEM THE SOONER WE REPUBLICANS PUT 1992 BEHIND US THE BETTER OFF THE WHOLE COUNTRY WILL BE WE NEED A VIGOROUS FORWARDLOOKING OPENDOOR PARTY NOT ONLY TO BECOME THE MAJORITY BUT MORE URGENTLY TO MAKE OUR UNIQUE CHECKANDBALANCE FORM OF GOVERNMENT WORK IT HASN'T BEEN WORKING VERY WELL LATELY AND BILL CLINTON ISN'T THE ONLY ONE WHO THINKS SO MR FORD WAS THE 38TH US PRESIDENT 9301200032 930120 DEAR EMPRESSTOBE LIFE WON'T BE A BOWL OF CHERRY BLOSSOMS DUTIES OF NEW PRINCESS LEAVE LOTS OF JAPANESE WOMEN COLD STILL PERKS ABOUND BY YUMIKO ONO AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO CROWN PRINCESS YOU'D THINK MOST YOUNG JAPANESE WOMEN WOULD COVET THE FAIRYTALE TITLE AND THE FAME WEALTH AND SERVANTS THAT COME WITH IT NOT TO MENTION THE PALACE AND POOL THINK AGAIN IT'S SUICIDAL SAYS MIHOKO KAWAGUCHI A 28YEAROLD OFFICE WORKER SHOPPING IN THE GINZA SHE'D NEVER THINK OF MARRYING A ROYAL IN TRADITIONBOUND JAPAN IF YOU GET SICK OF EACH OTHER YOU CAN'T JUST SEPARATE LIKE THE BRITISH ROYALS DO SO WHAT'S SO BAD ABOUT BEING A PRINCESS IN MODERN JAPAN WHEN A JAPANESE MAGAZINE ASKED 100 WOMEN THAT QUESTION A COUPLE OF YEARS BACK IT GOT AN EARFUL NO PRIVACY SAID ONE TOO RESTRICTIVE ANSWERED ANOTHER THREEQUARTERS OF THE WOMEN SAID FORGET IT THEY'D RATHER MARRY A COMMONER THE LIFE OF A JAPANESE PRINCESS THEY CONCLUDED IS A ROYAL PAIN IT WAS A SENTIMENT CROWN PRINCE NARUHITO CLEARLY CONFRONTED IN HIS FRUSTRATING 10YEAR SEARCH FOR A BRIDE EVEN MASAKO OWADA THE CAREER DIPLOMAT WHO TUESDAY OFFICIALLY BETROTHED HERSELF TO THE FUTURE EMPEROR WAS FOR MUCH OF THEIR COURTSHIP A VERY RELUCTANT PRINCESS IT WASN'T PERSONAL SAYS A LONGTIME FRIEND OF MS OWADA IT WAS MORE A RELUCTANCE TO BE PART OF THE INSTITUTION WHY ALL THE HESITANCE FOR ONE THING AS A CROWN PRINCESS YOU HAVE TO CONTEND WITH THE IMPERIAL HOUSEHOLD AGENCY EMPLOYEES ALL 1100 OF THEM INCLUDING A GRAND STEWARD OF THE HOUSEHOLD A CHIEF OF THE SILVERWARE SUBSECTION AND DOZENS OF OTHERS WHO CHOREOGRAPH CEREMONIES WRAPPED IN THIS CONSTRICTING COCOON THE PRINCESS MUST ASPIRE TO BE THE SYMBOL OF THE JAPANESE PEOPLE SAYS ONE PERSON CLOSE TO THE IMPERIAL FAMILY THAT DOESN'T LEAVE MUCH ROOM FOR INDIVIDUALITY NEXT THERE'S THE LONG LIST OF THINGS YOU CAN'T TALK ABOUT AND THINGS YOU CAN'T DO BY CUSTOM NO ONE IN THE ROYAL FAMILY IS ALLOWED TO PUBLICLY EXPRESS A STRONG OPINION THEY'RE NOT EVEN PERMITTED TO VOTE AND FORGET SPONTANEITY YOU NEED A SECURITY ESCORT IF YOU WANT TO TAKE IN A MOVIE OR ENJOY A DINNER OFF THE PALACE GROUNDS INDEED THE MAIN FUNCTION OF THE CROWN PRINCESS IS TO STAND BY HER MAN AS HE CUTS RIBBONS AND VISITS HOSPITALS LIKE EMPRESS MICHIKO THE CROWN PRINCESS MAY GET AN HONORARY POST IN THE JAPAN RED CROSS SHE MAY ALSO ONE DAY ASSUME THE EMPRESS'S DUTIES OF BLESSING THE SILKWORMS THAT ARE RAISED ON PALACE GROUNDS TO MAKE TRADITIONAL SILK SHE WILL CERTAINLY LEARN TO WAVE TO CROWDS IN THE IMPERIAL WAY DAINTILY FROM THE WRIST AND TO WRITE ANCIENT 31SYLLABLE WAKA POEMS THE NEW PRINCESS WILL LIVE SURROUNDED BY BOOKISH MALE INLAWS THE LATE EMPEROR HIROHITO ENJOYED STUDYING PRIMITIVE SEA CREATURES CALLED HYDROZOANS AND HIS PROGENY ARE A CHIP OFF THE OLD BLOCK HIS SON EMPEROR AKIHITO IS AN EXPERT ON GOBY FISH AND HAS A SPECIES NAMED IN HIS HONOR PLATYGOBIOPSIS AKIHITO PRINCE AKISHINO NARUHITO'S YOUNGER BROTHER DISSECTS CATFISH AND AKISHINO'S WIFE KIKO BAKES HIM CATFISHSHAPED COOKIES BUT IT IS PRECISELY THIS QUIET LIFESTYLE THAT ENDEARS THE CLAN TO SO MANY JAPANESE THE STABLE IMPERIAL FAMILY EMBODIES JAPANESE TRADITIONS AND IS WIDELY RESPECTED AND LOVED HERE THE JAPANESE PEOPLE SHARE A SENSE OF SATISFACTION OF SUPERIORITY THAT JAPAN'S ROYAL FAMILY IS IN BETTER CONDITION THAN BRITAIN'S SAYS A PERSON CLOSE TO THE IMPERIAL FAMILY EVERYBODY HERE SAYS THEY'RE HAPPY THAT WE DON'T HAVE A DIANATYPE SCANDAL OF COURSE THERE ARE SOME FRINGE BENEFITS TO JOINING THE IMPERIAL FAMILY THERE'S THE HUGE MAIN PALACE WITH THE CARPFILLED MOAT CONVENIENTLY LOCATED IN DOWNTOWN TOKYO LOTS OF GUEST ROOMS AND THERE'S THE NEARBY RESIDENCE OF THE CROWN PRINCE TOGU PALACE SURROUNDED BY LUSH PRIVATE PARKLAND IF THE CROWN PRINCE NEEDS AN ERRAND RUN HE CAN TURN TO ONE OF HIS 34 PERSONAL ATTENDANTS SEVEN DOCTORS AND 15 NURSES ARE ON CALL AT THE PALACE HOSPITAL AND 51 GARDENERS TEND TO THE FAMILY'S LAWNS FOR EXERCISE THERE'S THE IMPERIAL TENNIS COURT WHERE THE EMPEROR AND CROWN PRINCE ONCE BEAT GEORGE BUSH AND US AMBASSADOR MICHAEL ARMACOST IF THE BACKHAND FALTERS A PROFESSIONAL COACH WILL GIVE BRUSHUP LESSONS A REGULAR STREAM OF DIGNITARIES PASSES THROUGH THE PALACE TO PAY THEIR RESPECTS AND WHEN THEY DO THEY ARE FETED WITH GOURMET MEALS MONEY ISN'T AN ISSUE FOR THE FAMILY A GOVERNMENT STIPEND TAKES CARE OF ALL NEEDS WORLD TRAVEL IS ANOTHER NICE PART OF ROYAL LIFE LAST SUMMER THE CROWN PRINCE TOOK IN THE OLYMPICS IN BARCELONA LIKE TO READ THE PALACE HAS 450276 BOOKS THE FAMILY PLAYS CLASSICAL MUSIC TOGETHER THE CROWN PRINCE ON VIOLA THE EMPEROR ON CELLO AND HAS PLENTY OF FREE TIME TO VISIT EXHIBITIONS AROUND TOWN THAT SET ASIDE SPECIAL VIEWINGS FOR THE FAMILY THE EMPEROR ALSO NEEDN'T WORRY THAT ANYONE WILL FORGET HIS BIRTHDAY IT'S A NATIONAL HOLIDAY STILL THE IMPERIAL LIFE COULD BE TOUGH FOR THOSE USED TO CALLING THEIR OWN SHOTS THE HOUSEHOLD AGENCY RUNS A TIGHT SHIP AND EVEN SCREENS POTENTIAL MATES FOR YOUNG ROYALS AT AN ANNUAL TREETRIMMING CEREMONY EVERYTHING IS SCRIPTED ATTENDANTS MARK THE BRANCH THE EMPEROR SHOULD SNIP AND THEN TELL PHOTOGRAPHERS WHEN TO SNAP THE PICTURE THE IMPERIAL HOUSEHOLD AGENCY IS TRYING TO STRESS THE IMAGE THAT THE IMPERIAL FAMILY IS DIFFERENT FROM COMMONERS SAYS TOSHIAKI NAKAYAMA A PHOTOJOURNALIST WHO ONCE COVERED THE FAMILY ATTENDANTS HE SAYS WANT TO KEEP A SCREEN AROUND THEIR LIVES IN ADDITION TO THE ISOLATION THERE'S THE STRAIN OF MARRYING INTO THE FAMILY ITSELF WHEN EMPRESS MICHIKO A COMMONER WAS CROWN PRINCESS THE SNOOTY BLUE BLOODS AND RETAINERS IN THE COURT DROVE HER TO NERVOUS EXHAUSTION ACCORDING TO NEWS ACCOUNTS OF THE EMPRESS'S LIFE THE HAZING REPORTEDLY INCLUDED SNIDE COMMENTS ABOUT THE GLOVES SHE WORE ON HER ENGAGEMENT DAY TOO SHORT THAT SORT OF BULLYING IS LONG PAST STILL ANY NEWCOMER TO THE FAMILY SHOULD EXPECT TO SPEND THE REST OF HER LIFE UNDER A MICROSCOPE TAKE MS OWADA ALREADY NEWSPAPERS AND TV STATIONS ARE SCRUTINIZING HER EVERY MOVE TALKSHOW HOSTS MARVEL AT HER CHIPPER MOOD DESPITE THE RECENT DEATH OF HER PET MACAW AND FASHION CONSULTANTS PRAISE HER CHOICE OF GRAY EYELINER TO MATCH HER GRAY HIGHHEELED SHOES MEDIA HELICOPTERS CHASE HER CAR FEMINISTS ARGUE THAT SHE SHOULD REPRESENT MODERN LIBERATED JAPANESE WOMEN WHILE EVERYONE ELSE WONDERS WHEN THE PRINCESSTOBE PLANS TO GET PREGNANT MS OWADA 29 AT FIRST GAVE THE PRINCE THE COLD SHOULDER BECAUSE SHE DIDN'T LIKE THE IDEA OF HAVING TO FORFEIT HER DIPLOMATIC CAREER WHAT MADE HER CHANGE HER MIND ONE THEORY HAS IT THAT THE HOUSEHOLD AGENCY'S PRINCESS SELECTION COMMITTEE PRESSED HER FAMILY TO PERSUADE HER AND APPEALED TO HER SENSE OF DUTY THEN OF COURSE THERE'S ANOTHER POSSIBILITY LOVE WHEN THE TWO APPEARED TUESDAY TELEVISION VIEWERS WERE SURPRISED BY THE PRINCE'S PUBLIC DISPLAY OF AFFECTION THE 32YEAROLD PRINCE BEAMED AT HIS FIANCEE ADORINGLY AND SAID I WILL BE BY HER SIDE AND DO EVERYTHING IN MY POWER TO PROTECT HER FROM ANY POSSIBLE HARDSHIPS MS OWADA IN TURN SAID SHE WAS WON OVER BY HIS PERSISTENCE AND CONSIDERATION HAD MS OWADA DESPITE HER CONCERNS FOUND HER PRINCE CHARMING WELL CONSIDER NARUHITO'S ENTRY IN LAST WEEK'S ANNUAL IMPERIAL POETRY RECITAL AS THE TUXEDOED READERS CHANTED HIS VERSE MANY JAPANESE HEARD THE SOUND OF A ROMANTIC INTO THE BLUE SKIES SINCE MY BOYHOOD HAS COME TRUE 9301200031 930120 BUSINESS BRIEFS ELECTROCOM AUTOMATION INC RECEIVED A CONTRACT FROM THE US POSTAL SERVICE FOR AS MUCH AS 212 MILLION TO PROVIDE REPLACEMENTS FOR ADVANCED FACER CANCELER SYSTEMS WHICH PROCESS AND SEPARATE MAIL GENERAL ELECTRIC CO'S GE CAPITAL CORP ESTABLISHED A LONGTERM AGREEMENT WITH SUMITOMO MARINE & FIRE INSURANCE CO TO DEVELOP INSURANCE FOR ASSETBACKED SECURITIES IN JAPAN ENGELHARD CORP COMPLETED THE SALE OF ITS SHARE IN M&T HARSHAWA A BASEMETAL PLATING BUSINESS TO ITS PARTNER ELF ATOCHEM NORTH AMERICA INC FOR 40 MILLION SAGE ALERTING SYSTEMS INC REACHED A PRELIMINARY AGREEMENT TO PURCHASE INFORMATION INTEGRATORS INC FOR A COMBINATION OF CASH AND PERFORMANCE OPTIONS TERMS WEREN'T DISCLOSED HOLIDAY INN WORLDWIDE SIGNED A LETTER OF INTENT WITH GRUPO SITUR A REAL ESTATE AND DEVELOPMENT COMPANY TO DEVELOP AND OPERATE HOTELS IN MEXICO TERMS WEREN'T DISCLOSED HOLIDAY INN WORLDWIDE IS A DIVISION OF BASS PLC RESURGENS COMMUNICATIONS GROUP INC SIGNED AN AGREEMENT TO BE ACQUIRED BY METROMEDIA CO SUBJECT TO SHAREHOLDER APPROVAL RF WESTON INC RECEIVED FOUR ASSIGNMENTS FOR 22 MILLION TO EXPAND REMEDIAL FIELD INVESTIGATIONS AND EFFORTS TO DESIGN CLEANUP PROGRAMS AT TWO AIR FORCE BASES 9301200030 930120 STORAGE TECHNOLOGY POSTS 4THPERIOD LOSS CITING PRODUCT DELAYS LOUISVILLE COLO STORAGE TECHNOLOGY CORP PLAGUED BY HIGH RESEARCH COSTS AND REPEATED DELAYS IN A MAJOR NEW PRODUCT REPORTED A FOURTHQUARTER LOSS AND SAID ITS EARNINGS FELL 83 IN 1992 ON A SLIGHT DROP IN REVENUE THE COMPANY'S STOCK WHICH ONE YEAR AGO WAS TRADING AS HIGH AS 78 A SHARE CLOSED AT 19 DOWN 1125 IN NEW YORK STOCK EXCHANGE TRADING FOR THE FOURTH QUARTER THE COMPANY REPORTED A NET LOSS OF 77 MILLION OR 18 CENTS A SHARE IT HAD PROFIT OF 365 MILLION OR 88 CENTS A SHARE IN THE FOURTH QUARTER OF 1991 REVENUE FELL 13 TO 4142 MILLION FROM 4759 MILLION STORAGE TECHNOLOGY A MAKER OF DISKARRAY DATA STORAGE SYSTEMS LAST MONTH WARNED WALL STREET THAT ITS EARNINGS WOULD FALL BELOW ANALYSTS' ESTIMATES SOFTENING THE BLOW OF YESTERDAY'S NEWS THE COMPANY HAS BEEN DOGGED BY CONTINUED DELAYS IN ITS ICEBERG STORAGE SYSTEM THE TECHNOLOGY WHICH CAN STORE MASSIVE AMOUNTS OF COMPUTER DATA ON INEXPENSIVE DISK DRIVES HAD BEEN EXPECTED TO GENERATE AS MUCH AS 50 MILLION IN REVENUE IN 1992 ANALYSTS SAY THEY NOW DON'T EXPECT THE COMPANY TO SEE REVENUE FROM THE PROJECT UNTIL LATE 1993 AT THE EARLIEST FOR THE YEAR THE COMPANY REPORTED NET INCOME OF 155 MILLION OR 37 CENTS A SHARE COMPARED WITH 931 MILLION OR 233 A SHARE A YEAR EARLIER REVENUE FELL 4 TO 152 BILLION FROM 158 BILLION CHAIRMAN RYAL R POPPA CALLED 1992 DISAPPOINTING IN TERMS OF FINANCIAL PERFORMANCE AND SAID HE REMAINS CAUTIOUS ABOUT THE PROSPECT OF ANY EARLY WORLDWIDE ECONOMIC TURNAROUND HOWEVER HE SAID ORDERS AT STORAGE TECHNOLOGY ARE UP AND CASH HOLDINGS NEARLY DOUBLED TO 118 MILLION AT YEAR END FROM 66 MILLION AT THE END OF THE THIRD QUARTER FOR THE YEAR STORAGE TECHNOLOGY SAID IT WAS AFFECTED BY A 25 JUMP IN RESEARCH AND DEVELOPMENT COSTS TO 1479 MILLION FROM 1188 MILLION IN 1991 AND A SHIFT TOWARD LOWERMARGIN PRODUCTS 9301200029 930120 PEPPERAND SALT IS BLESSEDLY NOTHING TO SNEEZE AT IS QUITE A SIMPLE STUNT THEN SNEAK AROUND IN FRONT THE SHORTFALL OUT OF POCKET 9301200028 930120 HCA EXPECTS GAINS IN PATIENT REVENUE ADMISSIONS FOR 1992 NASHVILLE TENN HCAHOSPITAL CORP OF AMERICA EXPECTS TO REPORT SIZABLE GAINS IN ADMISSIONS AND PATIENT REVENUE FOR 1992 SAID THOMAS FRIST CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR FRIST SAID THE COMPANY IS WELL ON ITS WAY TOWARD COMPLETION OF THE SALE OF 22 OF ITS PSYCHIATRIC HOSPITALS IT'S BEEN QUITE A DRAMATIC INCREASE BECAUSE OF THE SEVERITY OF WHAT WE'RE TREATING IN OUTPATIENT MR FRIST SAID IN AN INTERVIEW EVERYTHING FROM HANGNAILS A FEW YEARS AGO TO HYSTERECTOMIES NOW MEANWHILE HCA IS AHEAD OF SCHEDULE IN ITS PLAN TO SELL 22 OF THE 48 PSYCHIATRIC HOSPITALS IT OWNED AND OPERATED LAST YEAR HE SAID LAST SEPTEMBER THE COMPANY ANNOUNCED IT WOULD TAKE A 333 MILLION CHARGE IN THE THIRD QUARTER BECAUSE OF WRITEDOWNS IN THE SALE OF 22 OF ITS POORERPERFORMING PSYCHIATRIC HOSPITALS THE COMPANY EXPECTED TO TAKE A YEAR TO SELL THE HOSPITALS MR FRIST SAID HCA HAS EITHER SOLD OR REACHED AGREEMENT TO SELL 19 OF THE 22 HOSPITALS WE HAVE THEM UNDER CONTRACT AND WE'VE GAINED THE PRICES WE WANTED HE SAID WE'RE WELL WITHIN THE 333 MILLION CHARGE THE COMPANY WHICH WENT PUBLIC LAST FEBRUARY AFTER A 51 BILLION LEVERAGED BUYOUT IN 1989 HAS REDUCED ITS DEBT TO 24 BILLION DOWN FROM 57 BILLION IN 1989 MR FRIST SAID IN THE LAST 12 MONTHS WE'VE REPAID 16 BILLION AND IN 1993 WE WILL PAY BACK A MINIMUM OF 320 MILLION HE SAID HCAHOSPITAL CORP OF AMERICA SAID IT HAS EITHER SOLD OR HAS AGREEMENTS IN PRINCIPLE TO SELL 19 PSYCHIATRIC HOSPITALS AN ARTICLE YESTERDAY SAID THESE AGREEMENTS WERE UNDER CONTRACT BASED ON INFORMATION PROVIDED BY HCA 9301200027 930120 LAW HIGH COURT DECLINES TO HEAR ITT UNIT'S APPEAL OF STATE LAW WASHINGTON THE SUPREME COURT REFUSED TO REVIEW A NEW JERSEY LAW THAT MAKES IT DIFFICULT FOR INSURERS TO PULL OUT OF THE STATE'S TROUBLED AUTOINSURANCE MARKET A PROVISION IN NEW JERSEY'S 1990 FAIR AUTOMOBILE INSURANCE REFORM LAW REQUIRES INSURERS SEEKING TO WITHDRAW FROM THE AUTO INSURANCE MARKET TO SURRENDER THEIR LICENSES FOR ALL PROPERTY AND CASUALTY INSURANCE LINES IT WAS CHALLENGED BY AN ITT HARTFORD INSURANCE GROUP SUBSIDIARY TWIN CITY FIRE INSURANCE CO WHICH IN 1990 APPLIED TO WITHDRAW FROM THE AUTO INSURANCE MARKET WHILE MAINTAINING ITS OTHER PROPERTY AND CASUALTY LINES THE LAW WOULD REQUIRE SEVEN OTHER CORPORATE AFFILIATES OF ITT HARTFORD TO GIVE UP THEIR RIGHTS TO SELL INSURANCE IN THE STATE TOO THE NEW JERSEY SUPREME COURT UPHELD THE LAW LAST JULY IN ADDITION IT SAID THE ITT HARTFORD UNITS WOULD HAVE TO FIND OTHER CARRIERS TO TAKE OVER THEIR BUSINESS BEFORE THEY COULD BEGIN WITHDRAWING IT ALSO APPROVED A PROVISION IN THE LAW REQUIRING THE COMPANIES TO TAKE ON A PROPORTIONATE SHARE OF POLICY HOLDERS FROM A STATESPONSORED POOL OF HIGHRISK DRIVERS DURING A FIVEYEAR WITHDRAWAL PERIOD ITT HARTFORD A UNIT OF NEW YORKBASED ITT CORP CONTENDED IN ITS APPEAL TO THE US SUPREME COURT THAT IT IS UNCONSTITUTIONAL FOR A STATE TO FORCE AN INSURER TO CHOOSE BETWEEN ITS LIBERTY TO CEASE DOING BUSINESS IN A PARTICULAR MARKET AND ITS RIGHT TO CONTINUE TO OPERATE IN OTHER MARKETS AT LEAST TWO OTHER STATES HAVE ENACTED SIMILAR INSURANCE LAWS A MASSACHUSETTS LAW WAS UPHELD BY THAT STATE'S TOP COURT IN 1977 A YEAR EARLIER THE NORTH CAROLINA SUPREME COURT STRUCK DOWN THAT STATE'S STATUTE 9301200026 930120 BUSINESS BRIEF STRIDE RITE'S 4THQUARTER NET FELL 83 ON KEDS' SLOWING GROWTH AND A CHARGE CAMBRIDGE MASS STRIDE RITE CORP HAMPERED BY SLOWING GROWTH OF ITS TOPSELLING KEDS SHOES AND A ONETIME 111 MILLION CHARGE POSTED AN 83 DECLINE IN EARNINGS FOR ITS FISCAL FOURTH QUARTER THE COMPANY WHICH ALSO MAKES SPERRY AND STRIDE RITE SHOES REPORTED NET INCOME OF 2 MILLION OR FOUR CENTS A SHARE AFTER THE CHARGE WHICH STEMS FROM THE PLANNED RELOCATION OF ITS DISTRIBUTION CENTERS TO KENTUCKY FROM MASSACHUSETTS THAT COMPARES WITH NET OF 119 MILLION OR 23 CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER SALES FOR THE QUARTER ENDED NOV 27 SLIPPED 6 TO 1075 MILLION FROM 1147 MILLION IN THE YEAREARLIER PERIOD IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE STRIDE RITE SHARES WERE QUOTED AT 21375 DOWN 625 CENTS THE FOURTHQUARTER EARNINGS EXCLUDING THE CHARGE WERE IN LINE WITH THE COMPANY'S PROJECTIONS AT MIDYEAR FOURTHQUARTER SALES OF KEDS DECLINED 9 FROM LAST YEAR'S RECORD RESULTS THE COMPANY SAID THE LINE THOUGH ACCOUNTING FOR 64 OF THE COMPANY'S SALES IN 1992 HAS BEEN LOSING STEAM IN RECENT MONTHS FOR ALL OF FISCAL 1992 THE KEDS DIVISION POSTED A 5 SALES INCREASE THE COMPANY SAID CLEARLY KEDS HASN'T BEEN SHOWING THE 25 AND UP GROWTH RATE IT WAS ACHIEVING IN THE PAST SAID JOSIE ESQUIVEL AN ANALYST FOR SHEARSON LEHMAN BROTHERS THE NOFRILLS SHOE RETAILING FOR 20 TO 22 BECAME POPULAR AS AN ALTERNATIVE TO THE BELLS AND WHISTLES OF THE REEBOKS AND NIKES THAT SELL FOR HIGHER PRICES MS ESQUIVEL SAID BUT NOTICING KEDS' REMARKABLE GROWTH IN THE LATE 1980S AND EARLY 1990S A HOST OF COMPETITORS BEGAN MAKING LESS EXPENSIVE CLONES IN RESPONSE THE COMPANY PLANS TO INTRODUCE IN ITS FISCAL SECOND QUARTER A SHOE BEARING THE LOGO KEDS & CO THAT WILL RETAIL FOR ABOUT 15 THE NEW LINE WILL BE SOLD PRIMARILY THROUGH A FEW DISCOUNTERS TO TEST THE MARKET FOR A LOWERPRICED SHOE SAID JOHN PHELAN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER PREVIOUSLY STRIDE RITE HAD STOPPED SHIPMENTS OF ITS REGULAR KEDS LINE TO A NUMBER OF DISCOUNTERS THAT WERE SELLING IT AS A LOSS LEADER OR AT OR BELOW WHOLESALE COST A MOVE THAT HURT ITS 1992 SALES MS ESQUIVEL SAID MEANWHILE STRIDE RITE'S OTHER BRANDS HAVE BEEN SLUGGISH SALES OF ITS SPERRY TOPSIDER DIVISION ROSE 11 IN THE FOURTH QUARTER VS A WEAK YEAREARLIER PERIOD BUT DECLINED 10 FOR ALL OF FISCAL 1992 SALES OF THE STRIDE RITE CHILDREN'S GROUP SLIPPED 10 IN THE QUARTER AND 7 FOR THE YEAR PARTLY DUE TO THE CLOSING OF SOME UNPROFITABLE STRIDE RITE STORES HARNESSED WITH SAGGING SALES AND RELOCATION PROBLEMS SOME ANALYSTS DON'T SEE THE COMPANY REGAINING MOMENTUM UNTIL LATE THIS YEAR I THINK THINGS WILL START FALLING IN PLACE ONCE THE COMPANY SETS UP ITS DISTRIBUTION CENTERS AT THE END OF THE YEAR MS ESQUIVEL SAID NET FOR ALL OF FISCAL 1992 FELL TO 615 MILLION OR 119 A SHARE FROM 66 MILLION OR 128 A SHARE IN THE YEAREARLIER PERIOD EXCLUDING THE ONETIME CHARGE INCOME PER SHARE FOR 1992 WOULD HAVE BEEN 141 SALES ROSE 2 TO 5859 MILLION FROM 5744 MILLION 9301200025 930120 LEISURE & ARTS BOOKSHELF A SPINSTER'S JOURNEY OF SELFDISCOVERY BY MERLE RUBIN DESPITE A TITLE SUGGESTING AN EXPOSE OF LIFE IN THE FINANCIAL FAST LANE ANITA BROOKNER'S LATEST WORK FRAUD RANDOM HOUSE 240 PAGES 21 IS A BROODING MELLIFLUOUS EXPLORATION OF THE CLOISTERED TWILIT HENRY JAMESIAN TERRAIN THAT THIS BRITISH NOVELIST HAS MADE SO DISTINCTIVELY HER OWN MS BROOKNER WHO IS ALSO AN ART HISTORIAN HAS CARVED OUT A SMALL BUT ENDLESSLY VARIOUS TERRITORY OF MOSTLY FEMALE LONELY WELLHEELED LONDONERS SOME ENGLISH SOME OF CONTINENTAL AND JEWISH BACKGROUND ALMOST ALL LEAD SHELTERED LIVES OF QUIET DESPERATION THERE HAVE BEEN OCCASIONAL DISAPPOINTMENTS THE FLATLY DRAWN SHALLOW CHARACTERS OF FAMILY AND FRIENDS THE CONTRIVED PLOT AND STOCK RESPONSES OF A FRIEND FROM ENGLAND STILL FEW CONTEMPORARY NOVELISTS CAN MATCH MS BROOKNER'S CONSISTENTLY HIGH LEVEL OF ACHIEVEMENT THE PENETRATION OF HER VISION THE SENSE OF CONVICTION IN WHAT SHE IS DOING AND THE UNFORCED ELEGANCE OF HER WRITING I HAVE ONLY TO THINK OF HER PORTRAIT OF EDITH HOPE THE ALLTOOAPTLYNAMED ETERNALLY HOPEFUL ROMANCE WRITER IN HOTEL DU LAC RECIPIENT OF THE 1984 BOOKER PRIZE OR HER UNFLINCHING DELINEATION OF LOSS IN BRIEF LIVES AND A CLOSED EYE FRAUD IS HER 12TH NOVEL AND ONE OF HER BEST IN SOME RESPECTS IT IS A KIND OF PALINODE IF NOT QUITE RETRACTING THE ATTITUDES OF HER EARLIER BOOKS THEN CERTAINLY RETHINKING THEM FIFTYYEAROLD ANNA DURRANT MISSING FROM HER SOUTH KENSINGTON FLAT AS THE STORY OPENS IS A TYPICAL BROOKNER HEROINE VIRTUOUS SELFEFFACING AND UNAPPRECIATED BUT THIS TIME FOR AT LEAST HALF OF THE NOVEL SHE IS PRESENTED THROUGH THE EYES OF LESSTHANFRIENDLY WITNESSES WHO CAN'T HELP WONDERING IF THIS WELLBRED TASTEFULLY DRESSED DOGGEDLY CHEERFUL SPINSTER ISN'T SOME KIND OF FRAUD THE POLICE QUESTION HER PHYSICIAN WHO RATHER TOO EMPHATICALLY DENIES ANY POSSIBILITY OF A ROMANTIC CONNECTION WITH THE MISSING WOMAN NEXT IN THE ABSENCE OF FAMILY ANNA'S MOTHER IS NO LONGER ALIVE AND CLOSE FRIENDS THEY TURN TO GIMLETEYED MRS MARSH A TOUGH OLD WIDOW WHO KNEW BOTH MOTHER AND DAUGHTER AND WHO HAS CONTINUED TO TOLERATE AND SLIGHTLY RESENT ANNA'S DAUGHTERLY SOLICITUDE THICKSKINNED AND SELFISH AS SHE IS MRS MARSH A FORMER MAGISTRATE MAKES SOME EFFORT TO BE FAIR FOR ALL SHE KNEW ANNA WAS AS GOOD AS SHE SEEMED TO BE A DEVOTED DAUGHTER IN THE MANNER OF THOSE DAUGHTERS OF A BYGONE ERA WHO SACRIFICED THEIR LIVES UNTHINKINGLY THE WAY THEIR BROTHERS HAD DONE IN THE TRENCHES IT WAS ONLY BECAUSE SUCH SACRIFICE WAS NOW IRRELEVANT EVEN FAIRLY REPELLENT THAT ONE LOOKED ASKANCE AT IT THE POLICEMEN EVAPORATE BUT THE QUESTIONS REMAININ THE MIND OF MRS MARSH OF THE DOCTOR LAWRENCE HALLIDAY AND IN ANNA'S OWN MIND ANNA'S LONG DEVOTION TO HER GENTLE WIDOWED MOTHER AMY IS REVEALED TO HAVE BEEN GENUINE GROWING UP WITH THAT SADLY SMILING MOTHER HAD IMPRESSED UPON ANNA THE DUTY OF PROTECTING THAT MOTHER AGAINST FURTHER HURT MS BROOKNER KNOWS IT'S EASY TO DISPARAGE SUCH FILIAL LOVE AS UNHEALTHY AND CRIPPLING BUT IMPLICITLY SHE POSES THE QUESTION WAS THIS RELATIONSHIP ANY LESS WORTHWHILE THAN DR HALLIDAY'S UNHAPPY MARRIAGE TO A SPOILED AGING DADDY'S GIRL OR ANNA'S OWN PROSPECT OF LANDING MRS MARSH'S ELIGIBLE DIVORCED SON NICK WHOSE COSTIVE UTTERANCES AND IMPLACABLE RESERVE SHE WAS SUPPOSED TO FIND REWARDING AS SHE SUPPOSED SOME OTHER WOMEN MIGHT WOMEN TO WHOM A MAN RESEMBLED A SAFE WAITING TO BE CRACKED HE'S A FAR CRY FROM THE KIND MAN TEACHER LOVER FRIEND WITH WHOM ANNA IMAGINES LEADING A LIFE THAT WOULD BE LIKE A LONG CONVERSATION EQUALLY SHARED HALLIDAY PHYSICIAN TO ANNA HER LATE MOTHER AND MRS MARSH IS CLOSER TO WHAT ANNA HAS IN MIND BUT HE'S NOT QUITE COMFORTABLE WITH THE PROSPECT POOR ANNA IN HER BEAUTIFULLY TAILORED SUITS SHE MAKES THEM HERSELF WITH HER ETERNALLY HOPEFUL SMILE IS A LITTLE TOO HIGHTONED AND EARNEST FOR HIM SO HE MARRIES A VULGAR WOMAN HE HALF DESPISES BUT HE AND ANNA ALLOW HER FRAGILE MOTHER THE DUBIOUS LUXURY OF DYING WITH THE CONSOLING BELIEF THAT HER DAUGHTER AND THE DOCTOR WILL FORM A SUITABLE ALLIANCE ANNA'S SELFSACRIFICING BEHAVIOR AS WE DISCOVER IS NOT A FACADE CONCEALING DARKER MOTIVES AND DESIRES BUT GRADUALLY IT BECOMES EVER MORE EVIDENT NOT LEAST TO ANNA HERSELF THAT SHE HAS BEEN LIVING INAUTHENTICALLY HER AUTOMATIC SMILE CONCEALS A SECRET BREACH IN THE IDYLLIC MOTHERDAUGHTER RELATIONSHIP AS WELL AS A CONTINUING FRUSTRATION AT HER OWN INABILITY TO TAKE CHARGE OF HER LIFE MS BROOKNER DEFTLY EXPOSES THE IRONY OF ANNA'S PREDICAMENT HER ONE TRUE FEELING HAS ENTANGLED HER IN A TRAIN OF EMOTIONAL EVASION UNTANGLING THESE SKEINS OF ATTACHMENT SELFDELUSION AND MISUNDERSTANDING FRAUD PROVIDES A COMPLEX SATISFYING AND MULTILAYERED PORTRAIT OF A COMPLICATED YET INNOCENT WOMAN WHO DISCOVERS SHE HAS DEFRAUDED HERSELF 9301200024 930120 BUSINESS BRIEF GENZYME CORP FIRM GETS FDA CLEARANCE TO MARKET CHOLESTEROL TEST GENZYME CORP SAID IT RECEIVED CLEARANCE FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET A NEW CHOLESTEROL TESTING KIT FOR USE BY CLINICAL LABORATORIES THE KIT WILL BE THE FIRST PRODUCT ON THE MARKET THAT CAN DIRECTLY MEASURE LOW DENSITY LIPOPROTEIN OR LDL CHOLESTEROL A PRIMARY FACTOR CONTRIBUTING TO CORONARY HEART DISEASE THE CAMBRIDGE MASS COMPANY SAID CURRENT METHODS OF DETERMINING LDL CHOLESTEROL LEVELS INVOLVE INDIRECT MEASUREMENT BY CALCULATION AND THUS PROVIDES ESTIMATES THAT ARE OFTEN INACCURATE ALSO GENZYME'S PRODUCT DOESN'T REQUIRE PATIENTS TO FAST 12 TO 14 HOURS BEFORE THE TEST AS MOST OTHERS DO GENZYME SAID 9301200023 930120 ADVISER TO GEORGE SOROS RUNS INTO TROUBLE WITH SEC BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NAME PURNENDU CHATTERJEE HAS NEVER MADE IT INTO THE RANKS OF THE US'S MOST FEARED CORPORATE RAIDERS BUT AS A LOWPROFILE ADVISER TO HEDGEFUND OPERATOR GEORGE SOROS MR CHATTERJEE HAS SPEARHEADED MR SOROS'S PURCHASES OF BIG BLOCKS OF STOCK IN SEVEN HIGHTECHNOLOGY COMPANIES OFTEN AGITATING FOR A TAKEOVER OR OTHER STRATEGIC CHANGES AND FOUR OF THE COMPANIES WERE SOON ACQUIRED YIELDING BIG PROFITS FOR MR SOROS'S 4 BILLION QUANTUM FUND NOW THE 43YEAROLD MR CHATTERJEE HAS RUN AFOUL OF THE SECURITIES AND EXCHANGE COMMISSION LAST WEEK MR CHATTERJEE SETTLED SEC CHARGES THAT AS A DIRECTOR OF FOXBORO CORP A POST HE GAINED IN APRIL 1990 BY REPRESENTING MR SOROS HE CONVEYED INSIDE INFORMATION ABOUT THE PROGRESS OF A SALE OF FOXBORO TO HIS BROTHERINLAW AND ANOTHER INVESTOR FOXBORO BASED IN FOXBOROUGH MASS WAS ACQUIRED BY BRITAIN'S SIEBE PLC FOR 6565 MILLION IN SEPTEMBER 1990 THE SEC IN A CIVIL COMPLAINT FILED IN US DISTRICT COURT IN BOSTON CHARGED THAT THE TWO OTHER MEN MADE A COMBINED 643855 IN PROFITS BY PURCHASING 52500 FOXBORO SHARES WHILE NEITHER ADMITTING NOR DENYING THE SEC CHARGES MR CHATTERJEE AND THE TWO OTHERS AGREED TO PAY 21 MILLION IN PENALTIES ALTHOUGH HE DIDN'T BUY ANY STOCK HIMSELF MR CHATTERJEE AGREED TO PAY A 643855 FINE MR SOROS IS A GLOBAL INVESTOR KNOWN MOST RECENTLY FOR THE 1 BILLION PROFIT HE MADE WHEN EUROPE'S EXCHANGE RATE SYSTEM UNRAVELED LAST FALL BUT SOME INVESTMENT ADVISERS SAY THE CHATTERJEE CASE MAY BE AN EXAMPLE OF WHAT CAN HAPPEN WHEN A BIG INVESTOR SUCH AS MR SOROS DELEGATES RESPONSIBILITY TO LOTS OF PEOPLE THERE IS A PARADE OF PEOPLE THROUGH HIS OFFICE WHO SAY I HAVE AN IDEA' ONE INVESTMENT PROFESSIONAL SAYS MR SOROS HAS BEEN A PROMINENT CONTRIBUTOR TO ORGANIZATIONS IN EASTERN EUROPE AND HE GAVE 100 MILLION LAST MONTH TO SUPPORT SCIENCE IN THE FORMER SOVIET UNION HE TRAVELS EXTENSIVELY AND DELEGATES MANY TRADING DECISIONS TO A TEAM LED BY STANLEY DRUCKENMILLER IN A STATEMENT ISSUED THROUGH HIS LAWYERS MR CHATTERJEE SAID HE SETTLED THE CASE TO AVOID PROTRACTED LITGATION AN ATTORNEY RICHARD KLEIN OF WILLKIE FARR & GALLAGHER SAID MR CHATTERJEE WASN'T AVAILABLE FOR FURTHER COMMENT BUT JUAN MARCEL MARCELINO THE SEC'S ACTING REGIONAL ADMINISTRATOR IN BOSTON SAID THIS WAS FRAUD MR CHATTERJEE'S ACTIONS AS THE DIRECTOR OF A PUBLIC COMPANY WERE A VERY SERIOUS ABUSE OF THE PUBLIC'S TRUST THE SEC COMPLAINT DIDN'T ALLEGE ANY ROLE BY MR SOROS IN CONVEYING INSIDE INFORMATION THE ALLEGED RECIPIENTS OF THE TIP WERE SUKUMAR SHAH A RESIDENT OF FRANCE WHO IS MR CHATTERJEE'S BROTHERINLAW AND ANJAN CHATTERJEE A WESTPORT CONN MANAGEMENT CONSULTANT WHO IS SAID TO BE UNRELATED TO THE SOROS ASSOCIATE MR SHAH'S LAWYER DIDN'T RETURN CALLS AND A LAWYER FOR ANJAN CHATTERJEE DECLINED TO COMMENT A SPOKESMAN FOR MR SOROS SAID THIS IS SOMETHING WE HAVE NOTHING TO DO WITH IT'S STRICTLY BETWEEN CHATTERJEE AND THE SEC THE SPOKESMAN SAID MR CHATTERJEE WAS NEVER AN EMPLOYEE HERE BUT WAS AN OUTSIDE INDEPENDENT CONTRACTOR HOWEVER MR CHATTERJEE GAINED HIS FOXBORO DIRECTORSHIP IN APRIL 1990 BY REPRESENTING A SOROS GROUP THAT HELD A 48 STAKE IN FOXBORO A MAKER OF INDUSTRIAL PROCESS CONTROLS ACCORDING TO FOXBORO'S 1990 PROXY STATEMENT I DON'T KNOW THE BACKGROUND BEHIND THAT SAID THE SOROS SPOKESMAN WHO DECLINED TO SAY WHETHER MR CHATTERJEE STILL WORKS FOR THE SOROS FUND MR CHATTERJEE A FORMER MANAGEMENT CONSULTANT WITH MCKINSEY & CO HAS SPACE IN MR SOROS'S MANHATTAN HEADQUARTERS BUT THAT SPACE IS ON THE 26TH FLOOR WHICH IS OCCUPIED BY MR SOROS'S NONPROFIT FOUNDATIONS RATHER THAN THE 33RD FLOOR WHERE OTHER INVESTMENT STAFFERS ARE MR CHATTERJEE WAS ALSO PRESIDENT OF BEALL TECHNOLOGIES INC A NORTH BERGEN NJ COMPUTER PARTS MAKER ACCORDING TO THE FOXBORO PROXY HENRY WEINERT PRESIDENT OF BOSTON BIOMEDICAL CONSULTANTS INC A CORPORATE CONSULTANT SAID MR CHATTERJEE HAS BEEN AMONG THE SENIOR CIRCLE OF SOROS ADVISERS HE CALLED MR CHATTERJEE THE ARCHITECT OF AN INVESTMENT CONCEPT THAT A MAJORITY OF THE SCIENTIFIC AND ANALYTICAL INSTRUMENT COMPANIES ARE UNDERVALUED AND THAT THIS IS AN INDUSTRY THAT SHOULD CONSOLIDATE MR WEINERT SAID THAT IN ADDITION TO THE FOXBORO TRANSACTION PRESSURE FROM SOROSLED STOCKHOLDER GROUPS PILOTED BY MR CHATTERJEE CONTRIBUTED TO THE TAKEOVERS OF TBAR INC IN 1986 FOR 495 MILLION PARADYNE CORP IN 1988 FOR 250 MILLION AND PANSOPHIC SYSTEMS INC IN 1991 FOR 2798 MILLION EVEN AS THE SEC CASE WAS PROGRESSING MR CHATTERJEE HAS BEEN PRESSING FOR CHANGES AT THREE COMPANIES WHERE MR SOROS STILL HOLDS BIG STAKES BECKMAN INSTRUMENTS INC PERKINELMER CORP AND TEKTRONIX INC AT TEKTRONIX A SOROSLED GROUP ADVISED BY MR CHATTERJEE HOLDS A 139 STAKE AND TWO MONTHS AGO WON THE RIGHT TO APPROVE THREE NEW DIRECTORS AFTER THREATENING A PROXY FIGHT A COURT FILING BY TEKTRONIX SAID MR CHATTERJEE SHARES IN ANY PROFIT ON TEKTRONIX STOCK HELD BY MR SOROS AND HIS QUANTUM FUND AT BECKMAN SAID LORRAINE SCHWARZ WHO FOLLOWS MEDICAL TECHNOLOGY STOCKS FOR WERTHEIM SCHRODER & CO MR CHATTERJEE ON BEHALF OF SOROS ALONG WITH SOME OTHER HOLDERS HAS BEEN PUTTING PRESSURE ON BECKMAN'S MANAGEMENT AND THE BOARD TO BECOME MORE RESPONSIVE TO SHAREHOLDERS AND CONSIDER VARIOUS STRATEGIC OPTIONS THE HOLDINGS GUIDED BY MR CHATTERJEE APPEAR TO CONSTITUTE ONLY A SMALL PART OF QUANTUM FUND'S US STOCK PORTFOLIO WHICH TOTALED 143 BILLION IN 143 STOCKS AT THE END OF 1991 WHEN THE ENTIRE QUANTUM FUND WAS 316 BILLION HOWEVER THE PERKINELMER STAKE WAS QUANTUM'S THIRD LARGEST US STOCK POSITION WITH A MARKET VALUE THEN OF 605 MILLION 9301200022 930120 INSIDE TRACK PROMUS INSIDERS TAKE A RIVERBOAT GAMBLE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BET ON THE RIVERBOAT GAMBLERS THAT'S THE WALL STREET WISDOM FROM SOME ANALYSTS AND COMPANY INSIDERS BULLISH ON PROMUS COS PARENT OF HARRAH'S CASINOS THE PRICE OF PROMUS STOCK HAS MORE THAN DOUBLED IN THE PAST SIX MONTHS BUT BULLS ARGUE THAT THE WINNING STREAK ISN'T OVER THE COMPANY'S EXPANSION LATER THIS YEAR INTO THE RIVERBOAT CASINO BUSINESS WILL GIVE IT A MONOPOLY IN SOME MARKETS THEY SAY AND COULD RESULT IN PROFITS SIGNIFICANTLY ABOVE THE INDUSTRY AVERAGE PROMUS INSIDERS HAVE BEEN AGGRESSIVELY ACCUMULATING THE COMPANY'S STOCK FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW IN SOME CASES THEY HAVE PAID PRICES AS HIGH AS 5625 A SHARE NEAR THE STOCK'S THREEYEAR HIGH OF 6250 SINCE NOV 17 ACCORDING TO THE FILINGS FIVE PROMUS DIRECTORS HAVE SPENT ABOUT 37 MILLION ON 69650 OF THE COMPANY'S SHARES THAT CAME ON TOP OF AN INSIDER BUYING SPREE LAST AUGUST IN WHICH FOUR DIRECTORS AND THE COMPANY'S PRESIDENT BOUGHT MORE THAN 30000 SHARES WHY SO BULLISH MICHAEL ROSE THE COMPANY'S CHAIRMAN SAID THAT BY MID1994 IT WILL HAVE THREE RIVERBOAT CASINOS FLOATING ON THE DES PLAINES AND MISSISSIPPI RIVERS AND IN RIVERBOAT GAMBLING THE CAPITAL INVESTMENT IS SIGNIFICANTLY LOWER AND THE PROFIT MARGINS ARE SIGNIFICANTLY HIGHER THAN IN THE GAMBLING PALACES OF ATLANTIC CITY NJ AND LAS VEGAS MOREOVER MR ROSE SAID PROMUS HAS A HANDFUL OF PROJECTS NOW IN NEGOTIATION NOT YET ANNOUNCED TO THE STREET ONE POSSIBILITY RUNNING CASINOS ON NATIVE AMERICAN TRIBAL LANDS HARRAH'S HAS ALREADY ANNOUNCED THAT IT IS IN FINAL NEGOTIATIONS WITH THE AKCHIN TRIBE OF PHOENIX TO RUN THEIR CASINO YESTERDAY MR ROSE SAID WE'RE TALKING TO A HALFDOZEN TRIBES ABOUT SIMILAR ARRANGEMENTS WHILE MR ROSE WASN'T ONE OF THE INSIDER BUYERS HE OWNS A 265 MILLION STAKE IN PROMUS PROMUS IS BETTER KNOWN TO SOME INVESTORS BY ITS OLD NAME HOLIDAY CORP IN FEBRUARY 1990 THE HOLIDAY INNS OPERATIONS WERE SPUN OFF AND THE COMPANY CHANGED ITS NAME PROMUS STILL OPERATES ABOUT 440 HOTELS IN THE US INCLUDING THE HAMPTON INNS AND EMBASSY SUITES CHAINS THE COMPANY'S STOCK IS SOMETHING OF A WALL STREET DARLING LAST JUNE IT WAS TRADING AT ABOUT 27 A SHARE BUT SOON AFTER ANALYSTS BEGAN SINGING ITS PRAISES PROMUS SHARES TOOK OFF BY DECEMBER THE STOCK HAD HIT THE TARGET 50TO60 RANGE THAT MOST ANALYSTS EXPECTED BY MID1993 EVEN THOUGH THE RIVERBOATS AREN'T AFLOAT YET AND THE COMPANY FACES STIFFENING COMPETITION NEGOTIATING FOR OTHER NEW SITES THE STOCK WHICH WAS QUOTED UNCHANGED LATE YESTERDAY AT 57 A SHARE ON THE NEW YORK STOCK EXCHANGE IS TRADING AT ABOUT 25 TIMES THE COMPANY'S ESTIMATED 1993 EARNINGS OF AROUND 225 A SHARE AT THAT LEVEL SOME ANALYSTS NOW WONDER HOW MUCH STEAM COULD BE LEFT IN THE STOCK MARGO VIGNOLA AN ANALYST AT SALOMON BROTHERS INC DOWNGRADED PROMUS TO A HOLD FROM A BUY ON JAN 13 AFTER IT HIT 62 WHILE THE COMPANY MAY HAVE GOOD NEWS COMING IN 1993 A LOT OF THAT'S FACTORED INTO THE STOCK ALREADY SHE SAID YESTERDAY STILL SHE ISN'T RECOMMENDING THAT INVESTORS SELL PROMUS IS ONE OF THE BEST COMPANIES IN THE INDUSTRY IT'S IN EVERY MAJOR MARKET OF GAMING IT'S PITCHED TO THE MIDDLE MARKET AND IT HAS A NAME IN THAT MARKET SHE SAID OTHER ANALYSTS ARE STILL BULLISH PROMUS IS PROBABLY OUR TOP PICK IN THE GAMING INDUSTRY SAID BRUCE TURNER WHO FOLLOWS THE COMPANY FOR RAYMOND JAMES & CO EARLY INFORMATION INDICATES PRETAX PROFIT MARGINS ON RIVERBOAT GAMBLING ARE ABOUT 35 VS A STANDARD OF 10 TO 25 IN THE INDUSTRY HE SAID MICKEY MOUSE MONEY THIS WEEK'S INSIDER TRADING SPOTLIGHT SHOWS PREVIOUSLY REPORTED STOCK SALES BY MICHAEL EISNER CHAIRMAN OF WALT DISNEY CO AND FRANK WELLS ITS PRESIDENT DISNEY ANNOUNCED THOSE SALES ON DEC 1 BUT THE INSIDERS WEREN'T REQUIRED TO FILE THEM WITH THE SEC UNTIL THE DEADLINE FOR FILING DECEMBER TRANSACTIONS WHICH WAS JAN 10 THE CHART REFLECTS FILINGS PROCESSED BY THE SEC THE WEEK OF JAN 11 MR EISNER EXERCISED OPTIONS ON DEC 1 REPRESENTING 3450000 SHARES AND SOLD THE RESULTING SHARES FOR 138 MILLION ACCORDING TO SEC FILINGS MR WELLS EXERCISED OPTIONS FOR 1640000 SHARES AND SOLD THE RESULTING SHARES FOR 656 MILLION THE FILINGS SHOW 9301200021 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS HANDS OFF WHEN IT COMES TO HONEYMOONS SOME PRESIDENTS HAVE BEEN LUCKIER THAN OTHERS BY JAMES M PERRY JOURNALISTS GAVE JOHN F KENNEDY A PRESIDENTIAL HONEYMOON FOR FOUR SOLID REASONS SAYS HARVARD UNIVERSITY POLITICAL SCIENTIST RICHARD NEUSTADT HE LISTS THEM IN ORDER THE HOUSE IN GEORGETOWN THE VACATION HOUSE IN PALM BEACH THE OTHER VACATION HOUSE IN HYANNIS PORT THE ELEGANT CARLYLE HOTEL SUITE IN NEW YORK YOU GUYS SAYS PROF NEUSTADT MEANING THE NATIONAL PRESS NEVER HAD IT SO GOOD BUT THAT WAS MORE THAN 30 YEARS AGO JFK WAS A MILLIONAIRE WITH FAMILY MANSIONS SCATTERED AROUND THE COUNTRY HERE COMES GOV BILL CLINTON OF ARKANSAS ANOTHER YOUTHFUL DEMOCRAT SUCCEEDING A REPUBLICAN PRESIDENT HE DOESN'T EVEN OWN A CONDO BUT HE MAY LUCK OUT ANYWAY ALMOST EVERY NEW PRESIDENT GETS SOME KIND OF HONEYMOON THE BIG TEST IS HOW LONG THE HONEYMOON LASTS AND HOW MUCH THE NEW PRESIDENT WANTS TO MAKE OF IT IT ACTUALLY DEPENDS MORE ON CIRCUMSTANCES THAN ON COMFORTS FOR THE WHITE HOUSE PRESS CORPS PROF NEUSTADT IS ONLY KIDDING THE APPLICATION OF THE HONEYMOON CONCEPT TO NEWLY INSTALLED PRESIDENTS PROBABLY GOES BACK TO DEMOCRAT FRANKLIN D ROOSEVELT ELECTED BY A LANDSLIDE OVER REPUBLICAN HERBERT HOOVER IN THE MIDST OF THE NATION'S GREATEST DEPRESSION ROOSEVELT ELECTED ON NOV 8 1932 WASN'T INAUGURATED UNTIL MARCH 4 1933 FDR WAS THE LAST PRESIDENT TO TAKE OFFICE UNDER THE LANGUOROUS OLD CONSTITUTIONAL RULES THAT WERE ADOPTED AT A TIME WHEN IT TOOK WEEKS EVEN MONTHS FOR NEWLY ELECTED MEMBERS OF CONGRESS TO MAKE THEIR WAY BY HORSE OR CARRIAGE TO THE NATION'S CAPITAL FROM THEIR FRONTIER CONSTITUENCIES THE 20TH AMENDMENT TO THE CONSTITUTION RATIFIED IN 1933 PUT BOTH THE NEW CONGRESS AND THE NEW PRESIDENT AND VICE PRESIDENT IN OFFICE IN JANUARY ROOSEVELT TOOK THE OATH OF OFFICE A FEW HOURS AFTER EVERY BANK IN THE COUNTRY FEARING A PANIC BY DEPOSITORS SHUT ITS DOORS IT WAS A TIME WHEN ONE OUT OF FOUR AMERICAN WORKERS WAS UNEMPLOYED PERSONAL INCOME HAD DROPPED BY MORE THAN 50 IN FOUR YEARS RELIEF AGENCIES COULDN'T FEED ALL THE HOMELESS THE NATION WAS FALLING APART AND SERIOUS PEOPLE WORRIED ABOUT REVOLUTION IN THOSE CIRCUMSTANCES ROOSEVELT COULD HAVE DONE ALMOST ANYTHING HE WANTED THE COUNTRY WAS SO DEMORALIZED NOBODY DARED OPPOSE HIM SAYS ARTHUR SCHLESINGER JR A CHRONICLER OF THE ROOSEVELT ERA AND NOW A PROFESSOR AT CITY UNIVERSITY OF NEW YORK AS HIS FIRST OFFICIAL ACTS ROOSEVELT DECLARED A BANK HOLIDAY BANKS WOULD BE CLOSED FOR 80 HOURS AND IMPOSED CONTROLS ON THE EXPORT OF GOLD THEN HE CALLED A SPECIAL SESSION OF CONGRESS TO CONVENE FIVE DAYS AFTER HIS INAUGURATION TO GET THE BANKS BACK IN BUSINESS MEMBERS OF CONGRESS AND THE LONE COPY OF THE BANKING BILL ARRIVED ON CAPITOL HILL AT ABOUT THE SAME TIME NOON ON MARCH 9 DEBATE WAS LIMITED TO 40 MINUTES IN THE HOUSE AND THERE WAS NO DEBATE AT ALL IN THE SENATE AND THE BILL HARDLY ANYONE HAD READ WAS LAW BY EARLY EVENING BANKS REOPENED ON MONDAY ROOSEVELT AND HIS KEY ADVISERS FIGURED THAT SINCE THE BANKING BILL PASSED SO EASILY THEY MIGHT AS WELL TRY A FARM MORTGAGE BILL A NATIONAL RELIEF BILL A HOMEOWNERS' LOAN BILL HOW ABOUT 15 MAJOR BILLS IN ALL PASSED BETWEEN MARCH 9 AND JUNE 16 IN THE GREATEST LEGISLATIVE OUTPOURING IN AMERICAN HISTORY TO TOP IT OFF HE ALSO GAVE THIRSTY PROHIBITIONWEARY AMERICANS 32 BEER IT WAS THE NOW LEGENDARY HUNDRED DAYS DURING WHICH AS MR SCHLESINGER SAYS IN HIS BOOK THE COMING OF THE NEW DEAL FDR PUSHED THROUGH ALL THAT LEGISLATION DELIVERED 10 SPEECHES HELD PRESS CONFERENCES AND CABINET MEETINGS TWICE A WEEK CONDUCTED TALKS WITH FOREIGN HEADS OF STATE SPONSORED AN INTERNATIONAL CONFERENCE MADE ALL THE MAJOR DECISIONS IN DOMESTIC AND FOREIGN POLICY AND NEVER DISPLAYED FRIGHT OR PANIC AND BARELY EVEN BAD TEMPER THE PRESS A SMALLER MORE COLLEGIAL BUNCH IN THOSE DAYS LOVED IT TIMES HAVEN'T CHANGED THAT MUCH HOWEVER THE MEDIA NEW WORD FOR THE PRESS STILL WELCOME NEW FACES AND THE CHANCE TO BE A SMALL PART OF HISTORY SO DO MOST AMERICANS MR SCHLESINGER ESTIMATES THAT THE ROOSEVELT HONEYMOON LASTED ABOUT A YEAR WHICH HE SAYS IS PROBABLY A RECORD FOR A POLITICAL HONEYMOON IT WAS MR SCHLESINGER WROTE A MOMENT OF CLARITY IN WHICH THE AMERICAN PEOPLE THREW OFF A SICK CONVICTION OF DEFEAT AND BEGAN TO BELIEVE IN THEMSELVES AGAIN HE GOT ALMOST EVERYTHING HE WANTED BUT IT TOOK A LITTLE LONGER HE SIGNED THE MEDICARE BILL FOR EXAMPLE ON JULY 30 1965 IN INDEPENDENCE MO WITH HARRY TRUMAN AT HIS SIDE IT TOOK 204 DAYS TO COMPLETE RONALD REAGAN HAD SOMETHING IN MIND TOO TAX CUTS AND A HEFTY MILITARY BUILDUP TO CHALLENGE THE SOVIET UNION'S EVIL EMPIRE IN THE 1980 PRESIDENTIAL ELECTION MR REAGAN WON A SUBSTANTIAL VICTORY MADE EVEN MORE IMPRESSIVE BY THE FACT THAT THE GOP WON CONTROL OF THE SENATE DEFEATING SUCH DEMOCRATIC STALWARTS AS BIRCH BAYH GEORGE MCGOVERN FRANK CHURCH AND GAYLORD NELSON THE SURVIVING DEMOCRATS WERE SHOCKED WE HAD TWO BIG BREAKS RECALLS MICHAEL DEAVER ONE OF MR REAGAN'S CLOSEST ADVISERS HE MR REAGAN WAS SHOT ON MARCH 30 THOUGH THAT WOULDN'T NORMALLY BE SEEN AS SOMETHING POSITIVE BUT IT WON HIM SO MUCH SYMPATHY I REMEMBER THE FIRST TIME HE WALKED ONTO THE FLOOR OF CONGRESS AFTER HE WAS SHOT HE WAS STILL SHAKING A LITTLE HE COULD HAVE GOTTEN ANYTHING HE WANTED AND THEN HE BROKE THE AIR CONTROLLERS' STRIKE THAT GAVE HIM A CHANCE TO SHOW HOW TOUGH HE WAS CONGRESS WAS IMPRESSED AND SO WERE THE MEDIA MR DEAVER MIGHT HAVE ADDED A THIRD BIG BREAK THE 52 AMERICAN HOSTAGES WHO WERE FREED AT THE VERY HOUR MR REAGAN TOOK THE OATH OF OFFICE SUCCESSFUL PRESIDENTS TEND TO BE THOSE WHO COME TO OFFICE WITH A CLEAR AGENDA AND WHO ARE PREPARED TO TAKE ADVANTAGE OF WHAT THEY KNOW WILL BE A SHORTLIVED HONEYMOON PERIOD IF THEY GET A LITTLE BIT LUCKY THAT HELPS TOO RICHARD NIXON TOOK OFFICE AFTER DIRECTING HIS TRANSITION FROM THE GILDED HALLS OF NEW YORK'S PIERRE HOTEL WITH NO DOMESTIC AGENDA AT ALL I'VE ALWAYS THOUGHT THIS COUNTRY COULD RUN ITSELF DOMESTICALLY WITHOUT A PRESIDENT HE TOLD AN INTERVIEWER IN 1967 ALL YOU NEED IS A COMPETENT CABINET TO RUN THE COUNTRY AT HOME WHAT HE WANTED TO DO WAS CONDUCT THE COUNTRY'S FOREIGN AFFAIRS THE AREA THAT INTERESTED HIM THE MOST AS FAR AS ANYONE COULD TELL HE WANTED TO TURN THE DOMESTIC PART OF HIS JOB OVER TO TWO MEN DANIEL PATRICK MOYNIHAN A PROFESSOR THEN AND NOW A DEMOCRATIC SENATOR AND ARTHUR BURNS AN ECONOMIST THAT DIDN'T WORK AND SO THE JOB EVENTUALLY FELL INTO THE HANDS OF THE GERMANS HR HALDEMAN AND JOHN EHRLICHMAN WHO BY MOST ACCOUNTS TENDED TO PLAY TO THE MOST TROUBLING ASPECTS OF MR NIXON'S COMPLEX CHARACTER RELATIONS WITH THE MEDIA NOT MUCH TO TALK ABOUT AT ANY TIME RAPIDLY DETERIORATED MR NIXON EVEN MANAGED TO OFFEND SOME OF THE MOST LOYAL TROOPS IN THE GOP BY PURGING THE PARTY'S POPULAR CHAIRMAN RAY BLISS WHAT REMAINED OF THE NIXON HONEYMOON AND THERE WAS NEVER MUCH OF ONE TO BEGIN WITH VANISHED IN HIS TWO DISASTROUS SUPREME COURT NOMINATIONS CLEMENT HAYNSWORTH AND G HARROLD CARSWELL SEVENTEEN REPUBLICANS VOTED AGAINST JUDGE HAYNSWORTH INCLUDING THE SENATE GOP LEADER HUGH SCOTT MR NIXON WAS OUTRAGED A STATE OF MIND THAT MORE AND MORE BECAME AN EVERYDAY EMOTION IN TIME THOUGH MR NIXON DID DEVELOP A DOMESTIC AGENDA AND SAW SOME OF IT THROUGH GERALD FORD SUCCEEDED MR NIXON IN 1974 WITH THE GOOD WISHES OF MOST AMERICANS IN A SHORT SPEECH TO AN AMERICAN PEOPLE SEARED BY THE WATERGATE SCANDAL HE SAID OUR LONG NIGHTMARE IS OVER OUR CONSTITUTION WORKS OUR GREAT REPUBLIC IS A GOVERNMENT OF LAWS AND NOT MEN BUT THEN A MONTH LATER HE GAVE MR NIXON AN ABSOLUTE PARDON AND HIS HONEYMOON ABRUPTLY CAME TO AN END JIMMY CARTER LIKE MR NIXON ARRIVED IN WASHINGTON WITHOUT MUCH IN MIND HE OFFENDED KEY DEMOCRATS IN CONGRESS BY PROPOSING TO KILL OFF SOME OF THEIR FATTEST PORKBARREL PROJECTS AND WITH THE HELP OF HIS INEXPERIENCED ADVISERS FROM GEORGIA GENERALLY OFFENDED THE PEOPLE HE NEEDED MOST HIS HONEYMOON WAS SENSATIONALLY SHORT IT ENDED IN BITTER ACRIMONY WITH THE RESIGNATION OF MR CARTER'S FRIEND AND TRUSTED ADVISER BERT LANCE AS BUDGET DIRECTOR MR LANCE HAD BEEN THE OBJECT OF AN ETHICS INVESTIGATION BY THE SENATE GOVERNMENTAL AFFAIRS COMMITTEE CONGRESS HAD BEEN UNCERTAIN ABOUT CARTER SAYS HARVARD'S MR NEUSTADT BUT THE LANCE AFFAIR CHANGED THAT CONGRESS BECAME TROUBLED BY CARTER GEORGE BUSH FOLLOWED A FAMILIAR PATH HE TOO CAME TO POWER WITH NO CLEAR DOMESTIC PROGRAM PREFERRING TO DEAL WITH INTERNATIONAL PROBLEMS AS HARD TIMES SPREAD ACROSS THE COUNTRY HIS FOREIGNPOLICY SUCCESSES BEGAN TO FADE HE PAID THE PRICE LAST NOV SUCCESSFUL HONEYMOONS CAN OCCUR PROF NEUSTADT SAYS WHEN ONE OR THE OTHER OF TWO CONDITIONS EXISTS THE FIRST IS WHEN THE COUNTRY IS SO DEMORALIZED THAT THE CONGRESS DOESN'T DARE THWART THE NEW PRESIDENT'S WISHES THAT'S THE ROOSEVELT EXAMPLE THE SECOND IS WHEN THE COUNTRY IS DEEPLY INTERESTED IN THE NEW PRESIDENT AND WHAT HE INTENDS TO DO IT PUTS PRESSURE ON CONGRESS TO GO ALONG THAT'S THE REAGAN EXAMPLE MR CLINTON SEEMS TO FIT THE SECOND CATEGORY PEOPLE ARE INTERESTED IN HIM AND DEEPLY CONCERNED ABOUT THE DIRECTION OF THE COUNTRY THERE IS A HEARTFELT HOPE OUT THERE THAT CLINTON AND THE CONGRESS CAN WORK TOGETHER IN A SERIOUS WAY SAYS MR NEUSTADT IN TIME THE PROFESSOR WARNS THIS ERA OF GOOD FEELINGS WILL WEAR OFF SIMPLY BECAUSE THE PRESIDENT ANY PRESIDENT AND THE CONGRESS ANY CONGRESS HAVE DIFFERENT POLITICAL BASES IT IS WHAT MR CLINTON MAKES OF THE TIME GIVEN TO HIM THAT WILL MARK HIS PRESIDENCY MR PERRY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200020 930120 BOEING ENGINEERS TECHNICAL WORKERS STRIKE FOR ONE DAY SEATTLE BOEING CO ENGINEERS AND TECHNICAL WORKERS CARRIED OUT A ONEDAY STRIKE OF THE AIRCRAFT CONCERN THE FIRST EVER BY THE SEATTLE PROFESSIONAL ENGINEERING EMPLOYEES ASSOCIATION THE UNION WHICH REPRESENTS ABOUT 28000 EMPLOYEES RECENTLY REJECTED A THREEYEAR CONTRACT OFFER FROM THE AIRCRAFT CONCERN AFTER DECLARING THAT THE LABOR TALKS WERE AT AN IMPASSE IN EARLY DECEMBER BOEING UNILATERALLY IMPLEMENTED MANY OF ITS PROPOSALS YESTERDAY UNION EMPLOYEES PICKETED 35 BOEING FACILITIES IN THE PUGET SOUND AREA SAID DANIEL M MAHONEY THE UNION'S GENERAL COUNSEL WE DIDN'T NEED ALL THE MEMBERS TO PARTICIPATE MOST PEOPLE JUST DIDN'T SHOW UP FOR WORK THE STRIKE WAS INTENDED TO SHOW BOEING MANAGEMENT THAT UNION MEMBERS' UNHAPPINESS WITH THE CONTRACT IS GENUINE MR MAHONEY SAID A BOEING SPOKESMAN SAID THE COMPANY IS DISAPPOINTED THAT IT CAME TO THIS BUT IT DOESN'T CHANGE OUR POSITION THE STRIKE DIDN'T HAVE ANY APPRECIABLE IMPACT ON COMPANY OPERATIONS HE SAID MR MAHONEY SAID THE DISPUTE WAS MOSTLY PHILOSOPHICAL THE UNION'S TWO MAIN DEMANDS ARE FOR LOWERING THE THRESHOLD FOR COSTOFLIVING WAGE ADJUSTMENTS AND FOR A GENERAL WAGE INCREASE FOR ENGINEERS BOEING HAS PROPOSED CREATING A MERIT POOL FROM WHICH ENGINEERS DESIGNATED BY THE COMPANY WOULD RECEIVE INCREASES THE CONTRACT PROPOSAL REJECTED BY THE UNION CALLED FOR 6 LUMPSUM DISBURSEMENTS IN DECEMBER NO CHANGE IN COSTOFLIVING ADJUSTMENTS AND NO GENERAL WAGE INCREASE FOR ENGINEERS TECHNICAL WORKERS WOULD GET A 4 WAGE INCREASE IN THE FIRST YEAR AND 2 IN EACH OF THE FOLLOWING TWO YEARS SELECTED EMPLOYEES ALSO WOULD RECEIVE PAYMENTS FROM A DESIGNATED MERIT POOL BOEING PAID THE LUMP SUM DISBURSEMENTS LAST MONTH THE UNION SAID MR MAHONEY SAID THE UNION'S GOVERNING BODY WILL MEET NEXT WEEK TO CONSIDER WHAT TO DO NEXT ONE OPTION WOULD BE TO SEND BOEING'S PROPOSAL BACK TO THE MEMBERSHIP FOR ANOTHER VOTE IF THE OFFER IS REJECTED AGAIN WE'LL HAVE TO CONSIDER A MORE SERIOUS STRIKE HE SAID THERE HAVEN'T BEEN ANY CONTRACT TALKS WITH BOEING SINCE EARLY LAST MONTH 9301200019 930120 BUSINESS BRIEF TIFFANY & CO JEWELRY RETAILER PLANS TO CUT 65 JOBS CLOSE BERLIN STORE TIFFANY & CO NEW YORK SAID IT PLANS TO CUT ABOUT 65 JOBS AND REALIGN SOME STORE OPERATIONS AND WILL TAKE ABOUT A 7 MILLION PRETAX CHARGE IN ITS CURRENT FOURTH QUARTER RELATED TO THOSE MOVES A SPOKESMAN FOR THE JEWELRY AND GIFT RETAILER SAID THE LAYOFFS WILL BE WORLDWIDE HE DECLINED TO BE MORE SPECIFIC BUT HE NOTED THAT MOST OF TIFFANY'S EMPLOYEES ARE IN THE NEW YORK AREA HE ALSO SAID THE REALIGNMENT OF STORE OPERATIONS WILL INCLUDE THE CLOSING OF ITS BERLIN STORE WHICH HE SAID WAS TOO SMALL TO ADEQUATELY PRESENT OUR FULL LINE HE SAID TIFFANY WHICH HAS STORES IN MUNICH AND FRANKFURT WOULD RETURN TO BERLIN IF IT COULD FIND A LARGE ENOUGH RETAIL SPACE AND WOULD CONSIDER OPENING IN OTHER GERMAN CITIES AS WELL THE CHARGE IS BASED ON PRELIMINARY ESTIMATES IN THE PREVIOUS YEAR'S FOURTH QUARTER WHICH ENDED LAST JAN 31 TIFFANY HAD EARNINGS OF 121 MILLION OR 76 CENTS A SHARE ON SALES OF 149 MILLION 9301200018 930120 BUSINESS BRIEF CPC INTERNATIONAL INC COMPANY TO TAKE A CHARGE AGAINST 4THQUARTER PROFIT CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ SAID IT WILL TAKE A CHARGE OF 47 MILLION OR 31 CENTS A SHARE AGAINST FOURTHQUARTER EARNINGS FOR ANTICIPATED ENVIRONMENTAL COSTS RELATED TO CHEMICAL OPERATIONS IT SOLD IN THE 1970S AND 1980S THE COSTS ARE EXPECTED TO RESULT FROM CLEANUP AT SEVERAL SITES PRIMARILY A FEDERAL SUPERFUND SITE IN MICHIGAN IN THE THIRD QUARTER OF 1991 THE PROCESSED FOODS COMPANY TOOK A 32 MILLION CHARGE FOR THE SAME REASON BUT IT SAID THAT THE LATEST FEDERAL ENVIRONMENTAL PROTECTION AGENCY REQUIREMENTS WOULD NECESSITATE ADDITIONAL SPENDING THE FOOD COMPANY'S 1991 FOURTHQUARTER NET INCOME ROSE 86 TO 1101 MILLION OR 143 A SHARE FROM 1015 MILLION OR 132 A SHARE A YEAR EARLIER 9301200017 930120 REVIEW & OUTLOOK EDITORIAL NANNY CRIME WAVE PRONOUNCING ON ZOE BAIRD'S DOMESTIC ARRANGEMENTS RALPH NADER FULMINATES ABOUT UPPER CLASS CRIME MAYBE SOME JOURNALIST SHOULD ASK ZOE'S PERUVIAN EMPLOYEES IF THEY CONSIDERED THEMSELVES VICTIMS THE INTREPID REPORTER COULD JUST TIPTOE OVER TO THE KITCHEN OR NURSERY AND ASK THEIR OWN UNDERTHETABLE HELPERS THE WASHINGTON POST NOTED AS FAR BACK AS 1987 THAT SPANISH SPEAKING IMMIGRANTS HAVE REPLACED THE TRADITIONAL ATHOME MOTHER AND HOUSEWIFE IN THE WASHINGTON AREA AND NOT JUST IN THE WASHINGTON AREA AFTER THE SUFFOLK COUNTY NY LEGISLATURE TOOK UP A BILL AIMED AT HARASSING THESE IMMIGRANTS EARLY LAST YEAR A LOCAL WOMAN BARBARA FISCHKIN ISSUED THIS WAKEUP CALL ABOUT THE SYMBIOTIC REALITY OF EMPLOYMENT ON LONG ISLAND TODAY SO MANY OF US WHO ARE TRYING TO CLING TO OUR PLACE IN THE MIDDLE CLASS ARE DEPENDENT ON PEOPLE WHO ARE HERE ILLEGALLY SHE WROTE IN NEWSDAY LAST MARCH WE NEED THE IMMIGRANTS' NEW BLOOD AND ENERGY AS DESPERATELY AS MY FRIEND A WAITRESS WITH A WORKING HUSBAND NEEDS HER GUATEMALAN BABY SITTER IF PEOPLE LIKE THIS QUALIFY AS UPPER CLASS OR THE RICH HEAVEN HELP US WHEN THE DEMOCRATS GET AROUND TO LAUNCHING THEIR SOAKTHERICH TAX PLAN THE FACT IS IF YOU'RE A TWOEARNER COUPLE TRYING TO RAISE KIDS AND KEEP HOUSE AFFORDABLE HELP IS A GODSEND EVEN IF IT'S ILLEGAL DOMESTIC LIFE IS ARDUOUS ENOUGH WITHOUT HAVING TO COPE WITH FICA OSHA REGS AND WHATEVER ELSE FOR THE BABY SITTER AS FOR THE PEOPLE WHO FLOOD HERE FROM POOR COUNTRIES THEY BRING MORE THAN THEIR SHARE OF GUMPTION WORK AS A MAID OR GARDENER CAN BE THE FIRST RUNG ON A LADDER TO THE MIDDLE CLASS FOR THEIR CHILDREN SO NOW THIS UPPER CLASS CRIMINALITY IS HELPING TWO FAMILIES REALIZE THEIR CHERISHED ASPIRATIONS NO WONDER THEY DON'T FEEL LIKE CRIMINALS BUT PERHAPS ST RALPH WOULD OFFER TO BUY THE TICKETS TO SHIP ZOE'S PERUVIANS BACK TO THE COCAINE FIELDS MS BAIRD ISN'T THE FIRST TO RUN AFOUL OF SIMPSONMAZZOLI THE 1986 LAW THAT PUNISHES EMPLOYERS WHO WON'T PLAY BORDER VIGILANTE THIS TIME THREE YEARS AGO NEW YORK MAYOR DAVID DINKINS WAS STANDING BY HIS NOMINEE FOR PARKS COMMISSIONER BETSY GOTBAUM EVEN THOUGH SHE AND HER UNIONLEADER HUBBY KEPT AN UNDOCUMENTED MEXICAN MAID AROUND THE HOMESTEAD FOR YEARS THE IRS ESTIMATES THAT TWO MILLION HOUSEHOLDS EMPLOY HELPERS BUT ONLY A QUARTER PAY THE REQUIRED TAXES TO ENCOURAGE THEM TO COUGH UP THE IRS PROMISES NOT TO SHARE THE INFO WITH THE US IMMIGRATION COPS NOW EVERYBODY SHOULD OBEY THE LAW EVEN WHEN THE LAW IS AN ASS BUT SIMPSONMAZZOLI IS A BIGGER BUTTIN LAW THAN MOST IT HAS DONE NOTHING TO STEM THE FLOW OF ILLEGALS BUT ONLY MADE LIFE HARDER FOR EVERYBODY EVEN THE INS OFFICE IN ARLINGTON VA HAD TO FIRE ITS CLEANING STAFF THEY WERE ILLEGALS OF COURSE AND PROBABLY DID A GOOD JOB MAYBE THE SADDEST PART IS THE JIHADMENTALITY THAT THE LAW HAS INDUCED AMONG SOME IMMIGRATION OFFICERS ONE DISSENTER COMPLAINED TO THE LOS ANGELES TIMES ABOUT THE SHABBY WAYS THE AGENCY BOOSTS ITS BODY COUNTS AT THE TIME SPECIAL AGENTS WERE ROAMING THE LA SUBURBS ROUNDING UP NANNIES AND HOUSEKEEPERS BASED ON TIPOFFS FROM THE LABOR DEPARTMENT THE LABOR DEPARTMENT CAME BY THE INFORMATION BECAUSE WELLMEANING FOLKS HAD INQUIRED ABOUT GETTING GREEN CARDS FOR THEIR DOMESTICS THAT WAS ANOTHER TRAP INADVERTENT OR OTHERWISE LAID BY SIMPSONMAZZOLI WE OPPOSED THIS AWFUL LAW FROM THE START AND PERHAPS ZOE'S NANNYFLAP WILL START THE BALL ROLLING TOWARD REPEAL AFTER HE GETS DONE WITH MS BAIRD JOE BIDEN MIGHT INVITE SOME IMMIGRANT HOUSEKEEPERS TO TESTIFY BEFORE HIS SENATE JUDICIARY COMMITTEE AND HE MIGHT CALL ON NORA LEE A NEW YORK IMMIGRATION LAWYER WHO'S PREPARING A CLASS ACTION SUIT ON BEHALF OF THE WORLD'S WOMEN SHE SAYS THE 1990 IMMIGRATION REFORMS WHICH FAVOR THOSE WITH SKILLS UNFAIRLY EXCLUDE WOMEN IN THEIR HOME COUNTRIES THE WOMENFOLK DON'T GET MUCH CHANCE TO ACQUIRE WHAT THE LAW CONSIDERS SKILLS INDEED THAT'S ANOTHER REASON THEY WANT TO LEAVE AND COME HERE AS FOR RALPH NADER THE AFLCIO AND FAIR THEY MIGHT SEEK MORE PRODUCTIVE OUTLETS FOR THEIR BROWNOPHOBIA LATINOS WOULDN'T FLOOD HERE IF JOBS WERE MORE PLENTIFUL SOUTH OF THE BORDER MAYBE THE REAL SOLUTION TO THIS UPPER CLASS CRIME WAVE IS FOR ST RALPH AND COMPANY TO RETHINK THEIR OPPOSITION TO NAFTA 9301200016 930120 COMMODITIES CEASEFIRE PROPOSAL FROM IRAQ EASES TENSIONS IN MIDEAST AND FURTHER BATTERS PETROLEUM PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES FELL AS MIDDLE EAST TENSIONS OVER IRAQ APPEARED TO BE EASING WITH OIL MARKETS ALREADY WEAKENED BY PERCEPTIONS OF SURPLUS SUPPLIES PRICES WERE FURTHER BATTERED AFTER THE IRAQI GOVERNMENT PROPOSED A CEASEFIRE IN THE SOCALLED NOFLY ZONES OF NORTHERN AND SOUTHERN IRAQ ON THE CONDITION THAT THE US AND ITS PERSIAN GULF WAR ALLIES AGREE TO RESPOND IN KIND SOME CRUDE OILS FELL MORE THAN 30 CENTS A BARREL IN THE WAKE OF THE IRAQI OFFER ALTHOUGH THERE WAS A SLIGHT PRICE RECOVERY IN LATE TRADING THE IRAQI OFFER CAME IN A STATEMENT FROM SADDAM HUSSEIN'S RULING REVOLUTIONARY COMMAND COUNCIL IT SAID THERE WOULD BE NO MORE ATTACKS ON US FRENCH OR BRITISH PLANES AS A GESTURE OF GOODWILL TOWARD THE CLINTON ADMINISTRATION AND THROUGH HIM THE AMERICAN PEOPLE IRAQ HAD BEEN EXPECTED TO MAKE SOME SUCH GESTURE TO THE NEW US PRESIDENT IN THE HOPE OF REDUCING OPPOSITION TO AN EVENTUAL LIFTING OF UNITED NATIONS ECONOMIC SANCTIONS AGAINST IT STILL THE MARKET REACTED TO THE NEWS BECAUSE THE THEORY GOES THAT SADDAM HUSSEIN POSSIBLY COULD HAVE A CHANGE OF HEART TOWARD THE US WITH BILL CLINTON IN OFFICE SO THAT HE COULD SELL OIL AGAIN SAID THOMAS BLAKESLEE AN ENERGY ANALYST WITH BRODY WHITE & CO A NEW YORK COMMODITY BROKERAGE FIRM THE IRAQI ANNOUNCEMENT DREW ALMOST IDENTICAL RESPONSES THAT THERE MUST BE FULL COMPLIANCE BY IRAQ WITH UN RESOLUTIONS FROM THE OUTGOING AND INCOMING US ADMINISTRATIONS NEVERTHELESS LIGHT LOWSULFUR CRUDE OIL FOR FEBRUARY DELIVERY SETTLED ON THE NEW YORK MERCANTILE EXCHANGE AT 1858 A BARREL DOWN 29 CENTS ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE OIL FUTURES CLOSED AS MUCH AS 27 CENTS A BARREL LOWER WHILE THE IRAQI DEVELOPMENTS HAD A ROLE IN PRICE MOVES YESTERDAY BEARISH PSYCHOLOGY HAS BEEN PERVASIVE IN OIL MARKETS FOR MONTHS LARGELY BECAUSE OF RISING PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ACCORDING TO OPEC ITS CRUDE OIL PRODUCTION WAS SLIGHTLY MORE THAN 253 MILLION BARRELS A DAY IN DECEMBER UP 85000 BARRELS A DAY FROM NOVEMBER ALTHOUGH IT HAS PROMISED TO CUT OUTPUT OIL TRADERS ARE SKEPTICAL AS A RESULT OF PLENTIFUL OPEC SUPPLIES OIL TRADERS HAVE TENDED TO SHRUG OFF OUTPUT DISRUPTIONS ELSEWHERE SUCH AS IN ANGOLA YESTERDAY SCORES OF FOREIGNERS WORKING IN ANGOLA FOR SUCH MAJOR OIL COMPANIES AS TEXACO INC FRANCE'S ELF AQUITAINE AND BELGIUM'S PETROFINA SA WERE EVACUATED AS FIGHTING BETWEEN ANGOLAN REBELS AND THE GOVERNMENT PARALYZED SOME OF THE OIL OPERATIONS THERE INDUSTRY OFFICIALS SAID TEXACO AND PETROFINA HAD REDUCED OFFSHORE AND ONSHORE PRODUCTION A TOTAL OF 91000 BARRELS A DAY AND THAT ELF'S ESTIMATED 160000 BARRELS A DAY OF OUTPUT MAY HAVE BEEN SEVERELY AFFECTED BUT WITH THE INDICATED EASING OF THE IRAQI TENSIONS THERE WAS MORE FOCUS ON US OIL INVENTORIES THE AMERICAN PETROLEUM INSTITUTE'S WEEKLY FIGURES RELEASED YESTERDAY AFTER THE CLOSE OF FUTURES TRADING SHOWED BIG GAINS IN STOCKS OF CRUDE OIL AND GASOLINE SOME INCREASES HAD BEEN EXPECTED BUT THE INCREASES REPORTED WERE MUCH BIGGER THAN ANTICIPATED CRUDE OIL AND GASOLINE INVENTORIES LAST WEEK JUMPED 78 MILLION BARRELS AND SIX MILLION BARRELS RESPECTIVELY THE FIGURES GENERALLY WERE INTERPRETED AS BEARISH BY ANALYSTS I EXPECT THE MARKET WILL REACT NEGATIVELY TO THE API REPORT BECAUSE OF THE LARGE BUILDS IN CRUDE OIL AND GASOLINE STOCKS SAID MR BLAKESLEE OF BRODY WHITE & CO IN OTHER COMMODITY MARKETS YESTERDAY COCOA FUTURES PRICES SURGED 25 A TON ON A REPORT THAT WORLDWIDE DEMAND IN THE CURRENT SEASON MAY OUTSTRIP PRODUCTION BY TWICE AS MUCH AS EARLIER FORECAST ON THE COFFEE SUGAR & COCOA EXCHANGE COCOA FOR MARCH DELIVERY CLOSED AT 1008 A TON UP FROM MONDAY'S CLOSE OF 983 AND FROM YEAREND TRADING LOWS OF 917 ANALYSTS SAID THE UPWARD REVISION OF ESTIMATES BY GILL & DUFFUS CORP OF LONDON PUT THE PRODUCTION SHORTAGE AT 110000 TONS COMPARED WITH 53000 TONS FORECAST IN NOVEMBER FOR THE 199293 CROP YEAR THAT ENDS IN SEPTEMBER THE DEFICIT'S WIDENING WAS BULLISH AND TECHNICAL FACTORS HAVE BEEN BULLISH SO WE WOULD EXPECT THE MARKET TO MOVE HIGHER SAID SCOTT MEYERS SENIOR COMMODITY ANALYST WITH REDELSILGO GROUP COFFEE FUTURES PRICES EXTENDED THEIR RECENT STEEP DECLINE AMID GROWING SKEPTICISM THAT AN ACCORD ON EXPORT QUOTAS CAN BE REACHED AT MONDAY'S MEETING OF PRODUCERS AND CONSUMERS IN LONDON THE ACTIVELY TRADED MARCH CONTRACT TUMBLED 305 CENTS TO 6560 CENTS A POUND THE LOWEST LEVEL SINCE MIDOCTOBER THE CONTRACT ENDED 1992 AT 7755 CENTS A POUND WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH SAID A MEETING THIS WEEK BETWEEN BRAZILIAN AND COLOMBIAN COFFEE PRODUCERS SUGGESTED THAT PRODUCERS MAY ACT IN CONCERT AT THE TALKS NEXT WEEK BUT HE SAID SPECULATORS REMAIN WARY OF BETTING TOO STRONGLY THAT AN EXPORT AGREEMENT WHICH WOULD BE BULLISH FOR PRICES CAN BE REACHED THE LAST EXPORT AGREEMENT REACHED BY THE INTERNATIONAL COFFEE ORGANIZATION WHICH BRINGS TOGETHER PRODUCERS AND CONSUMERS TO TRY TO SET PRODUCTION QUOTAS AND PRICE TARGETS COLLAPSED IN JULY 1989 ADDING TO THE DOWNWARD MOMENTUM ON PRICES IS CONCERN AMONG TRADERS AND ANALYSTS THAT BRAZIL THE WORLD'S LARGEST COFFEE PRODUCER MAY MOVE TOWARD AN AGGRESSIVE EXPORT POLICY UNDER THE NEW ADMINISTRATION OF PRESIDENT ITAMAR FRANCO GRAINS AND SOYBEANS RUMORS THAT RUSSIA AND UKRAINE REACHED AN AGREEMENT ON DIVIDING UP THE DEBT OF THE FORMER SOVIET UNION HELPED WHEAT FUTURES MOVE SHARPLY HIGHER AT THE CHICAGO BOARD OF TRADE WHEAT FOR MARCH DELIVERY SOARED 11 CENTS TO 3925 A BUSHEL AS RUSSIA'S DELINQUENCY ON ITS GRAINIMPORT OBLIGATIONS REACHED 205 MILLION YESTERDAY ALL EYES WERE ON DEBT NEGOTIATIONS BETWEEN RUSSIA AND FORMER SOVIET REPUBLICS SUCH AS UKRAINE THESE TALKS NEED TO BE CONCLUDED TO CLEAR THE WAY FOR RESCHEDULING OF RUSSIA'S DEBT WHEAT EXPORTS TO RUSSIA HAVE STOPPED BECAUSE RUSSIA IS BEHIND IN ITS PAYMENTS TO US GRAIN EXPORTERS HOWEVER IT WOULD APPEAR THAT THE DOOR IS OPEN FOR RESCHEDULING OF DEBT WHICH COULD ALLOW GOVERNMENT CREDIT PROGRAMS TO RESUME SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO HELPING DRIVE THE RALLY IN WHEAT FUTURES WERE REPORTS THAT NORTH AFRICAN NATIONS SUCH AS MOROCCO MAY BE IN THE MARKET FOR US WHEAT WITHIN A WEEK 9301200015 930120 ECONOMY ECONOMIC GAIN OF 3 EXPECTED FOR 4TH PERIOD RISE MAY BE BIG ENOUGH THAT SHORTTERM BOOST ISN'T NEEDED SOME SAY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ECONOMIC GROWTH IN THE FOURTH QUARTER MAY HAVE BEEN FAIRLY STRONG STRONG ENOUGH FOR SOME ANALYSTS TO QUESTION THE NEED FOR ECONOMIC STIMULUS THE GOVERNMENT WON'T DISCLOSE ITS INITIAL ESTIMATE OF FOURTHQUARTER ECONOMIC ACTIVITY UNTIL JAN 28 BUT SEVERAL ECONOMISTS HAVE RAISED THEIR OWN ESTIMATES IN THE PAST FEW WEEKS MANY ANALYSTS AND SOME FEDERAL RESERVE OFFICIALS SAY THE ECONOMY EXPANDED AT A 3 ANNUAL RATE OR MORE DURING THE PERIOD IF THEY'RE RIGHT IT WOULD BE EVIDENCE THAT THE RECOVERY IS GAINING SUSTAINABLE MOMENTUM A 3 RATE WOULD STILL BE SLOWER THAN THE 34 PACE OF THE THIRD QUARTER BUT THAT WAS THE FASTEST GROWTH SINCE THE FINAL QUARTER OF 1988 MOREOVER THE ECONOMY HASN'T GROWN 3 OR MORE IN CONSECUTIVE QUARTERS IN FOUR YEARS THERE SEEMS TO BE A FIRMNESS DEVELOPING IN THE ECONOMY SAYS ROGER BRINNER HEAD OF US FORECASTING FOR DRI MCGRAW HILL MR BRINNER ESTIMATES THE ECONOMY GREW AT A 31 ANNUAL RATE IN THE FOURTH QUARTER THE NUMBERS WILL PROBABLY SHOW THAT THE ECONOMY REALLY DOESN'T NEED SHORTTERM FISCAL STIMULUS SAYS EDWARD YARDENI CHIEF ECONOMIST FOR CJ LAWRENCE IN NEW YORK SO FAR HOWEVER PRESIDENTELECT CLINTON HAS GIVEN NO SIGNS THAT HE WILL ABANDON THE IDEA OF A SHORTTERM BOOST TO THE ECONOMY AND TRANSITION OFFICIALS HAVE MADE IT INCREASINGLY CLEAR THAT THERE WILL BE A MODEST STIMULUS IN THE CLINTON PROGRAM THEY REGARD A BOOST AS NECESSARY TO ENSURE THAT THE GROWTH IS SUSTAINED AND THAT IT HELPS THE JOB MARKET MUCH OF THE FOURTH QUARTER'S GROWTH PRESUMABLY CAME FROM A CONSUMERSPENDING BOOM THAT TOOK HOLD AT THE END OF THE YEAR BUSINESS INVESTMENT IN EQUIPMENT AND STRONG RESIDENTIAL CONSTRUCTION DRIVEN BY HURRICANES ANDREW AND INIKI ALSO GAVE THE FOURTH QUARTER A BIG BOOST SAYS DUN & BRADSTREET ECONOMIST DOUG HANDLER WHO ESTIMATES THE DATA WILL SHOW A 3 GROWTH RATE IN GROSS DOMESTIC PRODUCT RETAIL SALES WERE UP STRONGLY IN DECEMBER AND INITIAL UNEMPLOYMENT CLAIMS HAVE BEEN EDGING DOWNWARD DESPITE A JUMP IN THE WEEK ENDED JAN 2 INDUSTRIAL PRODUCTION ALSO INCREASED IN ALL THREE MONTHS OF THE FOURTH QUARTER DESPITE OPTIMISTIC ESTIMATES ON FOURTHQUARTER GDP ECONOMISTS SAY GROWTH WILL PROBABLY BE MUCH SLOWER IN THE FIRST HALF OF 1993 THAT'S BECAUSE THE INCREASE IN CONSUMER SPENDING HASN'T BEEN MET WITH MUCH OF A PICKUP IN NEW JOBS SPENDING ROSE MUCH MORE QUICKLY THAN INCOME IN THE FOURTH QUARTER CREDIT CARD USAGE WENT UP AND SAVINGS DROPPED SAYS MERRILL LYNCH SENIOR ECONOMIST BRUCE STEINBERG AS BILLS START BEING RECEIVED BY CONSUMERS THEIR APPETITE FOR PURCHASES WILL DIMINISH HE SAYS IN ADDITION MANY PEOPLE WILL RECEIVE A SMALLER INCOMETAX REFUND THIS YEAR BECAUSE THEY TOOK UP THE GOVERNMENT'S OFFER IN EARLY 1992 TO WITHHOLD SMALLER AMOUNTS FROM THEIR PAYCHECKS THAT WILL BE LIKELY TO PUT A DAMPER ON SPENDING AS WELL SILAS KEEHN PRESIDENT OF THE FEDERAL RESERVE BANK OF CHICAGO TOLD AN ECONOMIC OUTLOOK CONFERENCE YESTERDAY THAT GROWTH COULD STAGNATE IN 1993 BUT SAID THAT RISK HAS DIMINISHED QUITE CONSIDERABLY AS THE ECONOMY HAS BEEN RESTRUCTURED MR KEEHN ESTIMATED THAT THE ECONOMY GREW AT AN ANNUAL RATE OF 25 TO 3 IN THE FOURTH QUARTER AND IF THE ECONOMY DOESN'T GET A BIG BOOST FROM CONSUMERS THERE COULD BE A SURGE IN ECONOMIC ACTIVITY FROM BUSINESSES INCREASING INVENTORIES AND THAT COULD IN TURN HELP EMPLOYMENT STILL GROWTH WILL PROBABLY BE LESS IN THE FIRST HALF OF THIS YEAR THAN IN THE LAST HALF OF 1992 MR STEINBERG SAYS WE WON'T BE STUMBLING BUT WE CERTAINLY WON'T BE AS STRONG 9301200013 930120 ADVERTISING OVITZ'S AGENCY NIKE TEAM UP ON PROMOTIONS BY KEVIN GOLDMAN HOLLYWOOD'S POWERFUL CREATIVE ARTISTS AGENCY SHOOK UP MADISON AVENUE MORE THAN A YEAR AGO WHEN IT SIGNED ON AS A MARKETING CONSULTANT TO COCACOLA YESTERDAY THE TALENT AGENCY AND ITS CHAIRMAN MICHAEL OVITZ RATTLED THE ADVERTISING WORLD AGAIN ANNOUNCING A MAJOR PACT WITH GLOBAL MARKETER NIKE TO PRODUCE A SERIES OF SPECIAL SPORTING EVENTS AND PROGRAMS THE PARTNERSHIP IS ANOTHER IN A SERIES OF AGGRESSIVE MOVES BY THE AGENCY TO EXPAND BEYOND THE INSULAR TALENTAGENCY BUSINESS AND INTO THE GLOBAL MARKETING ARENA THAT WAS ONCE THE PROVINCE OF ADVERTISING AGENCIES THOUGH THE TWO SIDES GAVE ONLY SKETCHY DETAILS OF THEIR PLANS CAA PLANS TO COMBINE ITS ENTERTAINMENT EXPERTISE AND SOME OF ITS STAR CLIENTS WITH NIKE'S FORMIDABLE STABLE OF SPORTS ENDORSERS INCLUDING CHICAGO BULLS SUPERSTAR MICHAEL JORDAN AND SPORTS CELEBRITY BO JACKSON THE AIM IS TO CREATE PROGRAMMING FOR THE BURGEONING SPORTS MARKET ON BROADCAST AND CABLE TELEVISION THAT WOULD SPOTLIGHT THE ATHLETIC SHOE MAKER AND ITS PRODUCTS SPOKESMEN FOR CAA AND NIKE INSIST THAT THE UNNAMED VENTURE DOESN'T INVOLVE ADVERTISING AND ISN'T A THREAT TO NIKE'S INCUMBENT AD AGENCY THE HIGHLY REGARDED WIEDEN & KENNEDY BASED IN PORTLAND ORE BUT CAA MADE SIMILAR PROTESTATIONS WHEN IT SNARED COKE AS A CLIENT INSISTING IT WOULD HAVE NOTHING TO DO WITH THE SOFT DRINK'S ADVERTISING AND WOULDN'T POSE A THREAT TO INTERPUBLIC GROUP'S MCCANNERICKSON BUT CAA IS NOT ONLY ADVISING COKE ON ITS MARKETING BUT IS ACTUALLY PRODUCING A SERIES OF TELEVISION AND PRINT ADS USING SOME HOT CAA CLIENTS INCLUDING NORTHERN EXPOSURE PRODUCERS JOSHUA BRAND AND JOHN FALSEY AND FILM DIRECTORS ROB REINER AND RICHARD DONNER UNLIKE COKE'S WHOSE CAMPAIGN WAS FIZZLING AT THE TIME NIKE'S ADS HAVE HAD A LONG AND SUCCESSFUL RUN WITH THE SLOGAN JUST DO IT NIKE IS EXPECTED TO HAVE A SPLASHY PRESENCE WITH A NEW 90SECOND SPOT IN THE SUPER BOWL JAN 31 WITH A COMBINATION ANIMATION AND LIVEACTION SHORT STARRING MR JORDAN AND BUGS BUNNY AND MARVIN THE MARTIAN WIEDEN & KENNEDY IS RESPONSIBLE FOR THE NIKE ACCOUNT WORLDWIDE LAST YEAR NIKE SPENT 250 MILLION IN ADVERTISING 160 MILLION OF THAT DOMESTICALLY I JUST BELIEVE THE NIKECAA SITUATION IS IN NO WAY PARALLEL TO COKE SAYS DANIEL WIEDEN PRESIDENT AND CREATIVE DIRECTOR OF WIEDEN & KENNEDY THE ARRANGEMENT HAS NOTHING TO DO WITH ADVERTISING OR MARKETING NIKE IS THE LEADER IN THE 605 BILLION MARKET FOR ATHLETIC SHOES WITH A 299 SHARE RIVAL REEBOK INTERNATIONAL LTD IS NO 2 WITH 244 OF THE MARKET CAA APPARENTLY APPROACHED NIKE LAST SUMMER WITH AN APPROACH SIMILAR TO THE ONE IT USED TO WOO COKE BLITZING THE MARKETER WITH DOZENS OF IDEAS FOR PROGRAMS AND EVENTS THE TWO PUT TOGETHER A TEAM OF SEVEN EXPERTS FROM EACH SIDE TO REFINE THE IDEAS INTO SEVERAL WELLAIMED PROJECTS THAT THEY PROMISE TO START UNVEILING OVER THE NEXT FEW MONTHS FOR NIKE BASED IN BEAVERTON ORE THE NEWLY FORMED VENTURE MAY BE A FAR MORE FRUITFUL WAY TO EXPAND ITS SPORTS MARKETING EXPERTISE THAN SOME PAST EFFORTS LAST SEPTEMBER NIKE QUIETLY FORMED A SPORTS MANAGEMENT DIVISION BUT SO FAR IT HAS ONLY EIGHT ATHLETES AND OVERSEES SOME NIKE ENDORSERS' AFFAIRS THE ATHLETES INCLUDE MR JACKSON AND SAN FRANCISCO 49ER STAR WIDE RECEIVER JERRY RICE SOME PEOPLE WITH KNOWLEDGE OF THE DEAL SAY IT GREW OUT OF A FRIENDSHIP BETWEEN MR OVITZ AND NIKE'S FOUNDER AND CHAIRMAN PHILIP H KNIGHT THE TWO MEN DECLINED TO COMMENT BEYOND PREPARED STATEMENTS BUT MR OVITZ A FIXTURE AT LOS ANGELES LAKERS GAMES AND AN ADVISER TO LEGENDARY PLAYER EARVIN MAGIC JOHNSON REPORTEDLY SAW A BUSINESS OPPORTUNITY WHEN HE NOTICED A MUTUAL ADMIRATION SOCIETY AT COURTSIDE AMONG MOVIE STARS HE REPRESENTS AND THE ATHLETES THEY CAME TO CHEER CAA COUNTS AS ITS CLIENTS SUCH ACTORS AS DUSTIN HOFFMAN ROBERT DE NIRO KEVIN COSTNER AND TOM CRUISE AND SUCH DIRECTORS AS STEVEN SPIELBERG AND TIM BURTON OF BATMAN FAME NIKE MEANWHILE HAS A WORLDWIDE NETWORK OF ATHLETES AND ATHLETIC COACHES WHO ARE ALWAYS ON THE LOOKOUT FOR THE NEXT BIG STAR ATHELETE OR OLYMPIC CONTENDER WITH THE TECHNOLOGY TO PROVIDE HUNDREDS MORE CABLE TELEVISION CHANNELS NEARLY IN PLACE THE TWO COMPANIES MAINTAIN THAT THE APPETITE FOR SPORTS PROGRAMMING IS VIRTUALLY WITHOUT LIMIT WE HAVE TONS OF IDEAS SAYS ONE INSIDER NOW WE HAVE TO SORT IT ALL OUT NIKE SAYS NOT ALL ITS PROGRAMMING WILL SPLASH AROUND THE NIKE NAME SOME OF IT WILL JUST FEATURE ATHLETES ASSOCIATED WITH THE BRAND NO DOUBT WEARING THE LABEL WE MAY PRODUCE THE EVENT AND NOT NECESSARILY SPONSOR IT ADDS A NIKE EXECUTIVE INSTEAD OF JUST SIGNING ATHLETES TO RICH ENDORSEMENT CONTRACTS THIS SHOWS NIKE IS GETTING GREATER CONTROL OVER OTHER ENDORSEMENTS AND THE EVENTS THEIR ATHLETES PARTICIPATE IN SAYS STEVE DISSON PRESIDENT OF D&F CONSULTING A WASHINGTONBASED SPORTS MARKETING FIRM NIKE OFFICIALS MAINTAIN CAA WON'T BE INVOLVED DIRECTLY WITH MARKETING AND ADVERTISING CAMPAIGNS FOR NIKE BRAND ATHLETIC GEAR STILL THE MARRIAGE UNNERVES SOME ON MADISON AVENUE WHERE AGENCIES ARE CONCERNED THAT CAA IS NOT ONLY USURPING THEIR TRADITIONAL ROLE BUT ALSO MOVING AGGRESSIVELY INTO A NEW MARKETING ADVISORY ROLE THAT THE AGENCIES WANT TO STAKE OUT THEMSELVES IT'S A FREEFORALL OUT THERE SAYS GEORGE LOIS CHIEF EXECUTIVE OF LOIS/USA AND ONE OF THE AD WORLD'S MOST VOCAL ICONOCLASTS THIS KIND OF DEAL CLEARLY WORRIES AND ANGERS THE ESTABLISHMENT NIKE AND CAA CLEARLY AREN'T LIMITING THEMSELVES TO DOMESTIC PROGRAMMING IN THE JOINT ANNOUNCEMENT THE COMPANIES SAY THE FOCUS OF THEIR COLLABORATION WILL BE INNOVATIVE SPORTS EVENTS AND SPORTS PROGRAMMING WITH GLOBAL APPEAL SAYS NIKE'S MR KNIGHT WHEN A POLL OF HIGH SCHOOL STUDENTS IN CHINA TO FIND THE WORLD'S GREATEST MAN RESULTS IN A TIE BETWEEN CHOU ENLAI AND MICHAEL JORDAN IT PROVES AGAIN THAT SPORTS IS ONE OF THE GREATEST INTERNATIONAL LANGUAGES NORTHWEST AS EXPECTED THE NORTHWEST AIRLINES UNIT OF WINGS HOLDINGS ASSIGNED ITS CORPORATEAD ACCOUNT AND INTERNATIONAL COORDINATION DUTIES TO FALLON MCELLIGOTT AFTER SPLITTING WITH WPP GROUP'S J WALTER THOMPSON LATE LAST YEAR THE MOVE CONSOLIDATES AN ESTIMATED 25 MILLION IN BILLINGS WITH FALLON WHICH HAD ALSO BEEN HANDLING THE AIRLINE'S REGIONAL ADS WPP GROUP'S OGILVY & MATHER REMAINS ON NORTHWEST'S ROSTER A SPOKESMAN SAID ALTHOUGH IT WASN'T GIVEN AN ASSIGNMENT IN THE CURRENT MOVE MEDIA FIRST INTERNATIONAL NEW YORK HANDLES THE MEDIA PORTION OF THE ACCOUNT CLEAR CHOICE BAUSCH & LOMB ROCHESTER NY TAPPED WARWICK BAKER & FIORE NEW YORK FOR THE 10 MILLION CLEAR CHOICE MOUTHWASH ACCOUNT ADVERTISING FOR CLEAR CHOICE A NEW PRODUCT IS SET TO BREAK IN APRIL 9301200012 930120 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN THE CLINTON ERA MEANS BUSINESS AT LEAST FOR TAX ADVISERS AND LOBBYISTS CLINTON'S TAX PROPOSALS ARE EXPECTED TO LEAD TO INTENSE LOBBYING AND MANY NEW LAYERS OF TAXLAW COMPLEXITY COOPERS & LYBRAND IS INCREASING ITS WASHINGTON DC NATIONAL TAX STAFF ABOUT 20 AND PLANS A VIDEO CONFERENCE NEXT MONTH FOR CLIENTS IN 16 LOCATIONS JOB PROSPECTS LOOK ESPECIALLY BRIGHT FOR INTERNATIONAL TAX EXPERTS CLINTON VOWS TO SQUEEZE BILLIONS MORE IN TAXES FROM MULTINATIONAL COMPANIES INCOMETAX PREPARERS ALSO EXPECT BUSINESS TO SURGE H&R BLOCK'S STOCK IS UP 16 SINCE MIDOCTOBER LAWYERS AND ACCOUNTANTS EXPECT MORE WORK ADVISING CLIENTS ON THE INTRICACIES OF A POSSIBLE NEW INVESTMENTTAX CREDIT STATE AND LOCAL GOVERNMENT FINANCE GROUPS WILL TRY TO EASE RULES HAMPERING USE OF TAXFREE BONDS FOR A WIDE RANGE OF ACTIVITIES I DON'T THINK ANY OF US IS CONCERNED ABOUT FILLING UP OUR TIME SHEETS SAYS STEVEN HANNES OF DELOITTE & TOUCHE THERE'S PLENTY OF WORK TO GO AROUND WORK HARDER IRS TO CHASE ALL THOSE DEADBEATS CRITICS SAY CLINTON'S TREASURY INHERITS A HUGE PROBLEM THE IRS SAYS ITS BACKLOG OF ASSESSED BUT UNPAID TAXES TOTALS 71 BILLION UP FROM 63 BILLION A YEAR AGO IRS ALSO ESTIMATES 28 BILLION IS COLLECTIBLE COMPARED TO 29 BILLION A YEAR AGO THE BUSH BUDGET CALLS THE IRS STRATEGY FOR RESOLVING THE PROBLEM INADEQUATE AND SAYS IRS COLLECTIONS HAVEN'T EVEN KEPT PACE WITH GROWTH IN UNPAID TAX DEBT BUT IT SAYS IRS HAS ACTIVE EFFORTS UNDER WAY TO IMPROVE THE PROBLEM'S IMMENSE SIZE COULD MAKE IT TOUGHER FOR CLINTON TO SELL HIGHER TAXES A REPORT LAST MONTH BY THE GENERAL ACCOUNTING OFFICE CONGRESS'S WATCHDOG AGENCY ALSO IS CRITICAL THE GAO SAYS ONE WAY TO HELP PREVENT PROBLEMS IN THE FIRST PLACE IS TO WRITE LESSCOMPLEX REGULATIONS BUT THE REPORT ALSO CITES SIGNS OF PROGRESS THE IRS IS DEVELOPING BETTER DATA ON THE SITUATION AND KINDS OF TAXPAYERS INVOLVED IRS ALSO HAS IMPROVED ITS REVIEW PROCESS FOR EVALUATING PERFORMANCE OF FIELD OFFICES NEW RULES FOR MULTINATIONAL COMPANIES CONTAIN SOME THORNS WHILE RECEIVING MOSTLY CHEERS THE IRS REGULATIONS PROPOSED LAST WEEK ON HOW MULTINATIONALS ACCOUNT FOR BUSINESS AMONG UNITS ALSO DRAW SOME JEERS THE TRANSFERPRICING ISSUE ALTHOUGH FAIRLY ARCANE IS HOT BECAUSE CLINTON ARGUES THAT MULTINATIONALS HAVE MANIPULATED THE LAW TO SLASH THEIR US TAXES DAVID ASPER OF AT KEARNEY CALLS THE IRS PROPOSALS BOTH A THREAT AND AN OPPORTUNITY FOR MULTINATIONALS LAWYERS PREDICT PAINFUL RECORDKEEPING AND DOCUMENTATION HEADACHES THE SPECIFIC RULES HAVE BEEN IMPROVED BUT THE ADMINISTRATIVE BURDEN ON TAXPAYERS HAS BEEN GREATLY INCREASED SAYS ROBERT T COLE A LAWYER AT COLE CORETTE & ABRUTYN STILL ALAN GRANWELL A LAWYER AT CADWALADER WICKERSHAM & TAFT SAYS MAJOR PORTIONS OF THE NEW RULES ARE MUCH MORE UNDERSTANDABLE FLEXIBLE AND USERFRIENDLY THAN LAST YEAR'S CONTROVERSIAL PROPOSALS DIANNE KANAKIS OF PRICE WATERHOUSE AGREES THE RULES ARE OVERALL GOOD NEWS THE TEMPORARY RULES WON'T TAKE EFFECT UNTIL LATE APRIL TO GIVE CLINTON'S TEAM TIME TO STUDY AND PERHAPS CHANGE THEM NEW FACES SENS CONRAD D ND AND WALLOP R WYO JOIN THE FINANCE COMMITTEE SEN MOYNIHAN D NY THE NEW CHAIRMAN IS EXPECTED TO PICK AIDES LAWRENCE O'DONNELL AS STAFF DIRECTOR AND JOSEPH GALE AS CHIEF TAX COUNSEL ZOE BAIRD READ THIS TREASURY OFFICIALS SAY THEY STILL ARE STUDYING IMPLEMENTING VIA REGULATION A SURETOBEPOPULAR MEASURE ALLOWING FAMILIES WITH HIRED HELP TO SUBMIT PAYROLL TAXES WITH THEIR ANNUAL RETURNS RATHER THAN FILE QUARTERLY REP ROSTENKOWSKI ALSO PROPOSES RELIEF IN THIS AREA BYE BYE NEWARK THE TAX COURT NO LONGER HAS COURTROOM SPACE IN NEWARK NJ SAYS CHIEF JUDGE HAMBLEN THE GOVERNMENT DIDN'T RENEW ITS LEASE ON THE SPACE THE COURT OCCUPIED AND ATTEMPTS TO FIND ALTERNATIVE SPACE WERE UNSUCCESSFUL ALL 250 OR SO PENDING CASES THERE WILL BE SET FOR TRIAL IN NEW YORK CITY ESCAPE HATCH MORE INVESTORS FEARING HIGHER TAXES RUSH TO MUNI FUNDS THANKS LARGELY TO CLINTON'S CAMPAIGN PLEDGE TO RAISE THE TOP BRACKET TO 36 FROM 31 TAXFREE MUNICIPALBOND MUTUAL FUNDS LOOK INCREASINGLY ATTRACTIVE SALES THIS MONTH HAVE BEEN EXPLOSIVE FOLLOWING BIG INCREASES LATE LAST YEAR SAYS JOHN G TAFT PRESIDENT OF VOYAGEUR COS IN MINNEAPOLIS FIDELITY DESCRIBES ITS JANUARY MUNIBOND SALES AS PHENOMENAL ALSO SPARKING THE SALES BONANZA IS GROWING SPECULATION THAT MANY STATE AND LOCAL GOVERNMENTS WILL RAISE TAXES ANOTHER FACTOR IN THE STRONG SALES IS THE RECORD WAVE OF MUNICIPALBOND REDEMPTIONS INVESTORS NOW HAVE MORE TAXFREE BOND FUNDS THAN EVER TO CHOOSE FROM 754 AS OF DEC 31 UP MORE THAN 20 FROM A YEAR EARLIER ACCORDING TO LIPPER ANALYTICAL SERVICES MANY INVESTORS FAVOR FUNDS THAT INVEST SOLELY IN BONDS ISSUED WITHIN THEIR HOME STATE THESE FUNDS PAY DIVIDENDS FREE FROM ALL US STATE AND LOCAL INCOME TAXES LIPPER SAYS THERE NOW ARE 500 OF THESE SINGLESTATE FUNDS UP FROM ONLY 20 A DECADE AGO BRIEFS TREASURY SECRETARYDESIGNATE BENTSEN REACTS TO NICHOLAS BRADY'S RECENT TAX PLAN I HAVE PUT IT IN MY THINGS TO READ WHEN I CAN FIND TIME SIGN OF THE TIMES A US DELEGATION AGREES TO A PROPOSED INCOMETAX TREATY WITH KAZAKHSTAN 9301200011 930115 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9301200010 930120 FBI CHIEF ASSAILS JUSTICE DEPARTMENT OVER INVESTIGATION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SPLIT BETWEEN THE FBI DIRECTOR AND THE OUTGOING ATTORNEY GENERAL BECAME WIDE OPEN AS THE JUSTICE DEPARTMENT RELEASED A REPORT SHARPLY CRITICAL OF THE DIRECTOR AND HE RESPONDED IN KIND WILLIAM SESSIONS DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION SAID THE DEPARTMENT'S INVESTIGATION INTO ALLEGATIONS AGAINST HIM OF ETHICS VIOLATIONS HAS BEEN CONDUCTED WITHOUT THE BAREST ELEMENTS OF FAIRNESS AND MARKED BY PRESS LEADS CALCULATED TO DEFAME ME THE DEPARTMENT RELEASED AN EDITED 161PAGE REPORT THAT CHARGES MR SESSIONS WITH PARTICIPATING IN A SHAM ARRANGEMENT DESIGNED TO EVADE INCOME TAXES ON GOVERNMENTPROVIDED TRANSPORTATION USING A GOVERNMENT PLANE FOR PERSONAL TRAVEL INSTALLING A 10000 FENCE AT GOVERNMENT EXPENSE AT HIS HOME THAT DEGRADES RATHER THAN ENHANCES SECURITY AND FAILING TO COOPERATE WITH AN INVESTIGATION INTO CHARGES THAT MR SESSIONS GOT SPECIAL MORTGAGELOAN TERMS BECAUSE OF HIS POSITION MR SESSIONS SAID HE WILL PAY TAXES ON THE USE OF THE ARMORPLATED BUREAU CAR HE IS REQUIRED TO USE IF THE TAX EXEMPTION HE OBTAINED ISN'T WARRANTED HE SAID HE ALWAYS GOT AN OPINION FROM FBI LAWYERS REGARDING WHETHER HIS TRIPS ON GOVERNMENT PLANES SHOULD BE CLASSIFIED AS BUSINESS OR PERSONAL AND FOLLOWED EACH TRIP WITH A TRAVEL VOUCHER THE FENCE AROUND HIS HOME WAS REVIEWED AND APPROVED THROUGH THE APPROPRIATE FBI PROCEDURES MR SESSIONS SAID I WOULD NOT HAVE HAD PERFECT SECURITY IF I HAD ASSENTED TO THE BUNKERLIKE AND NEIGHBORHOODDESTROYING CHANGES THAT WERE PROPOSED HE SAID LAWYERS ADVISED HIM NOT TO SIGN AN AUTHORIZATION PERMITTING INSPECTION OF HIS MORTGAGE RECORDS BECAUSE JUSTICE DEPARTMENT INVESTIGATORS SURPRISED HIM WITH IT DURING AN INTERVIEW MR SESSIONS CRITICIZED THE DEPARTMENT FOR UNCRITICALLY ACCEPTING THE STATEMENTS OF A MAN WHOM THE DIRECTOR FIRED AS HEAD OF HIS SECURITY DETAIL I HAVE NOT BEEN GIVEN THE RIGHT TO REVIEW OR CHALLENGE HIS ASSERTIONS MR SESSIONS SAID 9301200009 930120 WHO'S NEWS JAMESWAY CORP JAMESWAY CORP SECAUCUS NJ BARRY ROCKLAND 49 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF FINANCE AND ADMINISTRATION AT THIS DISCOUNT DEPARTMENT STORE CHAIN HIS NEW DUTIES WILL INCLUDE LOGISTICS REAL ESTATE AND LOSS PREVENTION HE WILL CONTINUE AS CHIEF FINANCIAL OFFICER WILLIAM F DUFFY 37 WAS NAMED VICE PRESIDENT OF FINANCE RESPONSIBLE FOR TAXES BUDGETING TREASURY INTERNAL AUDIT AND RISK MANAGEMENT MR DUFFY'S SUCCESSOR AS CONTROLLER HASN'T YET BEEN NAMED JOSEPH PISERCHIA 57 WAS NAMED VICE PRESIDENT OF LOGISTICS RESPONSIBLE FOR DISTRIBUTION AND FREIGHT MR PISERCHIA WILL CONTINUE TO HEAD ACCOUNTS PAYABLE AND INVENTORY CONTROL MESSRS DUFFY AND PISERCHIA WILL REPORT TO MR ROCKLAND 9301200008 930120 TELERATE TO LAUNCH ELECTRONIC SYSTEM FOR TRADING ODD LOTS' OF TREASURYS BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TELERATE A UNIT OF DOW JONES & CO WILL LAUNCH AN ELECTRONIC SYSTEM THAT ALLOWS INSTITUTIONAL INVESTORS TO TRADE ODD LOTS OF TREASURY SECURITIES THE SYSTEM WILL BE OPERATED BY CANTOR FITZGERALD ONE OF THE NATION'S BIGGEST BOND BROKERAGE FIRMS MARKET DATA CORP A FINANCIAL INFORMATION SERVICES COMPANY WILL PROVIDE THE TECHNOLOGY FOR THE NEW BUSINESS WHICH WILL BEGIN OPERATING FEB 1 DOW JONES IS THE PUBLISHER OF THE WALL STREET JOURNAL HOWARD LUTNICK PRESIDENT OF CANTOR FITZGERALD SAID THE NEW SYSTEM REPRESENTS A FUNDAMENTAL CHANGE IN THE WAY THAT ODD LOTS WILL BE TRADED AND WILL ALLOW CUSTOMERS INSTANTANEOUS REALTIME ACCESS TO A PREVIOUSLY UNAVAILABLE MARKET IN THE TREASURY BOND MARKET THE NORMAL TRADING UNIT WHICH IS CALLED A ROUND LOT IS 1 MILLION FACE AMOUNT OF SECURITIES ANY AMOUNT LESS THAN 1 MILLION IS CONSIDERED AN ODD LOT INVESTORS WHO TRADE ODDLOT BONDS FREQUENTLY PAY HIGHER PRICES BECAUSE DEALERS DON'T LIKE HANDLING SMALLER DENOMINATIONS IN ADDITION MANY ODD LOTS ARE OLDER INACTIVE ISSUES WHICH DON'T APPEAR ON DEALERS' ELECTRONIC TRADING SCREENS AND MUST BE PRICED MANUALLY MR LUTNICK SAID THERE CURRENTLY ARE MORE THAN 200 DIFFERENT TREASURY NOTE AND BOND ISSUES ALL OF WHICH CAN BE TRADED ON THE CANTOR FITZGERALD ODDLOT TRADING SYSTEM THE SYSTEM WHICH IS TARGETED TO BANK TRUST DEPARTMENTS REGIONAL BROKERAGE FIRMS AND PENSION FUNDS WILL HANDLE ORDERS OF LESS THAN 1 MILLION WITH A MINIMUM OF 5000 CURRENTLY MANY INSTITUTIONAL INVESTORS WANTING TO BUY OR SELL ODD LOTS OF TREASURY NOTES OR BONDS MUST SOLICIT BID AND OFFER PRICES ON THE TELEPHONE FROM THREE OR MORE DEALERS AND COMPARE THE QUOTES TO FIND THE BEST PRICE BUT THROUGH THE ODDLOT TRADING SYSTEM CANTOR FITZGERALD SAID IT WILL COLLECT THE BIDS AND OFFERS FROM COMPETING MARKET MAKERS AND DISTRIBUTE THE BEST PRICE VIA TELERATE MR LUTNICK SAID THAT FIVE WALL STREET BOND DEALERS HAVE SIGNED UP SO FAR TO PROVIDE PRICE QUOTES ON THE NEW SYSTEM ALTHOUGH HE DECLINED TO NAME THEM MR LUTNICK SAID THE CANTOR FITZGERALD SERVICE DIFFERS FROM OTHER ODDLOT SERVICES BY ALLOWING SUBSCRIBERS TO LOCK IN A TRADE WITH ONE TELEPHONE CALL IN SEPTEMBER FIRST BOSTON CORP LAUNCHED AN ELECTRONIC TRADING SYSTEM FOR TREASURY SECURITIES CALLED GOVTRADE THE FIRST BOSTON SYSTEM WHICH HANDLES ODD LOTS AND ROUND LOTS IS INTERACTIVE OVER BLOOMBERG FINANCIAL SYSTEMS TERMINALS OTHER COMPANIES REPORTEDLY ARE WORKING ON SIMILAR SYSTEMS ANY ODDLOT TRADING SYSTEM WILL ONLY BE AS GOOD AS THE DEALER COMMUNITY WILL MAKE IT SAID TOM NELSON A VICE PRESIDENT AT CHASE MANHATTAN CORP'S PRIVATE BANKING UNIT IF THEY DON'T OFFER GOOD PRICES THE SYSTEM WILL NOT WORK CHASE'S PRIVATE BANKING UNIT TRADES AS MANY AS 60 ODD LOTS OF TREASURY SECURITIES EACH DAY IN WHAT MR NELSON SAYS IS NOW A TIMECONSUMING PROCESS TELERATE A PROVIDER OF REALTIME FINANCIAL INFORMATION AND DECISION SUPPORT PRODUCTS AND SERVICES IS A PART OF DOW JONES & CO'S ELECTRONIC INFORMATION SERVICES SEGMENT 9301200007 930120 INAUGURATION A SPECIAL REPORT THE ISSUES KEEP IT MOVING THE PROBLEM TRAFFIC GRIDLOCK ONE SOLUTION CONGESTION PRICING BY BRUCE INGERSOLL IT'S THE MATHEMATICS OF TRAFFIC THE NUMBER OF CARS AND TRUCKS ON THE ROAD TODAY IS UP 70 SINCE 1970 TOTAL MILEAGE TRAVELED IS UP 90 URBAN HIGHWAY CAPACITY MEANWHILE GREW ONLY 4 WHAT DOES IT ADD UP TO HIGHWAY CONGESTION IS THE MOST PRESSING TRANSPORTATION PROBLEM FACING THE CLINTON ADMINISTRATION AND THE 103RD CONGRESS SOME 70 OF THE NATION'S RUSHHOUR DRIVERS HAVE TO ENDURE STOPANDGO CONDITIONS AT GREAT COST TO THE ECONOMY IN LOS ANGELES ALONE THE TAB FOR LOST PRODUCTIVITY WASTED FUEL AND POLLUTED AIR COMES TO 6 BILLION A YEAR OR 3 A DAY PER VEHICLE EVEN IF PRESIDENT CLINTON MAKES GOOD ON HIS REBUILD AMERICA PLEDGE TO INVEST 80 BILLION IN INFRASTRUCTURE AND EVEN IF MUCH OF THE MONEY GOES TO HIGHWAYS THERE IS GROWING AGREEMENT THAT IT STILL WON'T BE ENOUGH TO BREAK THE GRIP OF URBAN GRIDLOCK TRANSPORTATION OFFICIALS FIND THAT ADDING LANES TO CONGESTED EXPRESSWAYS EVENTUALLY BOOMERANGS ON THEM BECAUSE IT ONLY ENCOURAGES MORE MOTORISTS TO DRIVE WHAT'S MORE SUBWAYS AND OTHER TRANSIT PROJECTS ARE PROVING TO BE MERELY SHORTLIVED REMEDIES FOR CONGESTION THE TEST FOR THE NEW ADMINISTRATION IS TO FIND A VIABLE ALTERNATIVE TO POURING CONCRETE FOR THAT PRESIDENT CLINTON WOULD DO WELL TO LOOK OVERSEAS SINGAPORE AND NORWAY HAVE SUCCESSFULLY PIONEERED SOMETHING THAT HAS LONG BEEN HIGHWAY HERESY HERE THE IDEA OF CONGESTION PRICING IT'S A VARIATION ON THE OLD TOLLROAD PRACTICE OF CHARGING WHATEVER THE TRAFFIC WILL BEAR IN EFFECT IT INVOLVES RATIONING HIGHWAY SPACE DURING RUSH HOURS IF DRIVERS FOR EXAMPLE ARE GIVEN AN OPTION OF PAYING A TOLL AT 8 AM OR TRAVELING FREE AT 7 AM SOME WILL DECIDE TO COMMUTE AT THE EARLIER HOUR FREEING UP SPACE FOR THOSE WHO COME IN LATER EVEN SMALL CHANGES IN COMMUTER BEHAVIOR CAN EASE CONGESTION THE DIFFERENCE BETWEEN SMOOTHFLOWING TRAFFIC AND A FOURLANE PARKING LOT STUDIES SHOW OFTEN IS ONLY A 2 DECREASE IN THE THRONG OF COMMUTERS THE IDEA OF RUSHHOUR TOLLS HAS LONG APPEALED TO ECONOMISTS AS A WAY TO MAXIMIZE THE EFFICIENCY OF HIGHWAYS POLITICIANS AND HIGHWAY OFFICIALS FEARFUL OF THE MOTORING PUBLIC'S REACTION HAVE ALWAYS VEERED AWAY FROM IT AMERICANS DON'T WANT TO PAY MONEY FOR SOMETHING THEY APPEAR TO BE GETTING FREEEVEN THOUGH IN REALITY THEY ARE PAYING A HIGH PRICE FOR TIME LOST IN TRAFFIC JAMS SAYS DOUGLASS LEE A TRANSPORTATION DEPARTMENT PLANNER SOME CRITICS ALSO OBJECT TO CONGESTION PRICING AS BEING AN UNFAIR TAX ONE THAT LETS THE WEALTHY TRAVEL WHENEVER THEY FEEL LIKE IT WHILE COMPELLING THE LESS WELLOFF TO TRAVEL AT LESS CONVENIENT HOURS OR TO USE CAR POOLS OR MASS TRANSIT OTHERS SEE IT AS MERELY DIVERTING TRAFFIC CONGESTION TO ALTERNATIVE ARTERIES AND SIDE STREETS BUT HONG KONG AND OTHER FOREIGN CITIES HAVE TRIED VARIOUS FORMS OF CONGESTION PRICING AND FOUND IT DOES WORK SINGAPORE FOR INSTANCE HAS BEEN ABLE TO PREVENT GRIDLOCK SINCE 1975 BY REQUIRING DRIVERS WHO WANT TO ENTER THE HEART OF ITS TEEMING BUSINESS DISTRICT TO BUY SPECIAL RUSHHOUR LICENSES TRAFFIC COASTS ALONG AT AN AVERAGE OF MORE THAN 18 MILES AN HOUR ACCORDING TO A 1990 STUDY IN ADDITION THE LICENSING PROGRAM HAS SPARED SINGAPORE FROM HAVING TO SPEND 15 BILLION ON ROAD CONSTRUCTION THE NORWEGIAN CITY OF BERGEN HAS HAD A RING OF TOLL GATES AROUND ITS DOWNTOWN FOR SEVEN YEARS THE CENTER WAS SO CONGESTED DURING RUSH HOURS THEY HAD TO DO SOMETHING SAYS ANNE BJELLAND AN ECONOMIST IN THE NORWEGIAN EMBASSY IN WASHINGTON THERE WERE MANY PROTESTS IN THE BEGINNING BUT THEN IT CALMED DOWN VERY QUICKLY TRAFFIC FELL 7 IN THE FIRST YEAR AS FOR THE TOLL REVENUE IT HAS BEEN GOING INTO ROAD IMPROVEMENTS AND BUS LANES SIMILAR TOLL RINGS HAVE BEEN SET UP IN OSLO AND TRONDHEIM CONGESTIONTOLL ADVOCATES MEANWHILE HAVE BEEN MAKING QUIET HEADWAY IN THE US LAST YEAR DEMOCRATIC SEN DANIEL PATRICK MOYNIHAN OF NEW YORK INTRIGUED BY THE IDEA GOT CONGRESS TO AUTHORIZE FIVE CONGESTIONPRICING PILOT PROJECTS AS PART OF A SIXYEAR 151 BILLION TRANSPORTATION PACKAGE AND DURING THE PRESIDENTIAL TRANSITION CLINTON ADVISERS SOUNDED OUT ECONOMISTS INCLUDING THE BROOKINGS INSTITUTION'S CLIFFORD WINSTON ON THE FEASIBILITY OF CHARGING RUSHHOUR TOLLS SUCH INTEREST REFLECTS A NEW APPRECIATION OF CONGESTION'S REPERCUSSIONS AND COSTS THE BAY AREA ECONOMIC FORUM ESTIMATES THAT A SINGLE DRIVER ENTERING SAN FRANCISCO'S CONGESTED ARTERIES DURING PEAK HOURS CAN GENERATE ONE HOUR OF ADDITIONAL DELAY FOR ALL OTHER DRIVERS COMBINED BUT THE INTEREST IN THE PROBLEM ALSO REFLECTS A DEEPENING DESPERATION ABOUT CONGESTION UNLESS SOMETHING DRASTIC IS DONE THE 15 BILLION HOURS LOST ANNUALLY TO BIGCITY TRAFFIC JAMS IS PROJECTED TO QUADRUPLE WITHIN 15 YEARS THE NEW ADMINISTRATION WILL FIND A WILLINGNESS TO EXPERIMENT AMONG THE NATION'S TOLLROAD AND TURNPIKE MANAGERS MY ATTITUDE IS WE HAVE TO MAKE MORE EFFICIENT USE OF WHAT WE HAVE RATHER THAN LAY NEW ASPHALT SAYS PETER TUFO CHAIRMAN OF THE NEW YORK STATE THRUWAY AUTHORITY AT THE SAME TIME CIRCUMSTANCES ARE BEGINNING TO FAVOR CONGESTION PRICING FOR ONE THING INVESTMENT IN TRANSIT LINES AND HIGHOCCUPANCY VEHICLE HOV LANES IS PROVING TO HAVE DIMINISHING RETURNS FOR ANOTHER SEVERAL COMPANIES HAVE DEVELOPED TECHNOLOGY FOR ELECTRONIC TOLL COLLECTION ELIMINATING THE PROBLEM OF LONG QUEUES OF CARS AT TOLL BOOTHS AUTOMATIC VEHICLEIDENTIFICATION DEVICES INCLUDING THOSE THAT EMPLOY SPECIAL WINDSHIELD STICKERS LET DRIVERS PASS BOOTHS WITHOUT STOPPING TOLLS ARE AUTOMATICALLY DEDUCTED FROM THEIR PREPAID ACCOUNTS ELECTRONIC COLLECTION ALREADY HAS BEEN TESTED AT SEVERAL LOCATIONS INCLUDING SAN DIEGO'S CORONADO BAY BRIDGE AND THE STREETS OF HONG KONG ALTHOUGH THERE'S GROWING PUBLIC ACCEPTANCE OF USER FEES IN SOME QUARTERS ANY MOVE TO INTRODUCE RUSHHOUR TOLLS WILL LIKELY RUN INTO POLITICAL ROADBLOCKS THE AMERICAN AUTOMOBILE ASSOCIATION REGARDS PEAKHOUR PRICING AS UNFAIR AND PUNITIVE TO COMMUTERS WHO DON'T HAVE FLEXIBLE SCHEDULES IT'S A PENALTY TO A WORKER WHO HAS TO GET TO WORK AT A CERTAIN HOUR SAYS JOHN ARCHER A LOBBYIST FOR AAA AND IF IT'S DONE IN A HEAVYHANDED WAY IT MAY ALSO ENCOURAGE BUSINESSES TO EXIT THE CENTRAL BUSINESS DISTRICT MR ARCHER FAVORS INSTEAD CREATING FINANCIAL INCENTIVES IF YOU HAVE A BRIDGE WITH HOV LANES LET HOV DRIVERS WITH THREE OR MORE PASSENGERS GO TOLLFREE HE SUGGESTS OR LET SOLO DRIVERS PAY A STEEP PREMIUM FOR THE RIGHT TO USE UNCLOGGED HOV LANES ROADPRICING ADVOCATES FOR THEIR PART BELIEVE A LOT OF OPPONENTS COULD BE MOLLIFIED BY EARMARKING TOLL REVENUES FOR TRANSPORTATION IMPROVEMENTS OR BY USING TOLLS TO COVER REDUCTIONS IN VEHICLEREGISTRATION FEES OR TRANSIT FARES FOR COMMUTERS WHO HAVE BEEN EFFECTIVELY PRICED OFF TOLL ROADS THEY ALSO BELIEVE THAT DRIVERS CAN BE SOLD ON THE BENEFITS OF RUSHHOUR TOLLS YOU MIGHT AS WELL AS PAY TAXES' FOR SOMETHING THAT GIVES YOU MORE FREE TIME SAYS PAUL EVANS A FREEMARKET ECONOMIST AT OHIO STATE UNIVERSITY A STUDY OF A PROPOSED TOLLWAY IN ORANGE COUNTY CALIF INDICATES THAT A PEAKPERIOD TOLL OF 85 CENTS AND AN OFFPEAK 50CENT TOLL WOULD CUT ANTICIPATED PEAK TRAFFIC BY 19 IN 1995 AND 30 IN 2015 A NATIONWIDE SYSTEM OF URBAN TOLLS RANGING FROM A PENNY TO 36 CENTS A MILE COULD INDUCE ENOUGH DRIVERS TO STAY OFF THE ROAD AT RUSH HOUR TO SAVE AN ESTIMATED 21 BILLION ANNUALLY IN TIME FUEL AND ACCIDENTS ACCORDING TO A WORLD RESOURCES INSTITUTE STUDY MANHATTAN WITH ITS NUMEROUS BRIDGES AND TUNNELS IS OFTEN CITED AS A GEOGRAPHICALLY IDEAL PROVING GROUND FOR RUSHHOUR TOLLS BUT THE FIRST TEST IN THE NORTHEAST WILL BE ON A MUCH SMALLER SCALE THE NEW YORK STATE THRUWAY IS SEEKING FEDERAL AID FOR A PILOT PROJECT EITHER ON TWO GRAND ISLAND BRIDGES NEAR BUFFALO OR ON THE TAPPAN ZEE BRIDGE OVER THE HUDSON RIVER WE'RE GOING TO HAVE TO EDUCATE THE USERS THAT THE BENEFITS ARE SUFFICIENT TO WARRANT THE INTRUSION SAYS MR TUFO OF THE PLANNED EXPERIMENT IT'S TOO EARLY TO SAY THIS IS THE WAVE OF FUTURE BUT IN CONGESTED URBAN AREAS THERE ARE STRONG ARGUMENTS FOR IT MR INGERSOLL IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200006 930120 BUSINESS BRIEF POMEROY COMPUTER RESOURCES INC CINCINNATI FIRM'S REVENUE ROSE 12 IN FOURTH QUARTER POMEROY COMPUTER RESOURCES INC SAID REVENUE IN THE FOURTH QUARTER ENDED JAN 5 INCREASED MORE THAN 12 TO ABOUT 18 MILLION FROM ABOUT 16 MILLION A YEAR EARLIER THE COMPUTERLAND FRANCHISEE SAID REVENUE FOR THE YEAR TOTALED MORE THAN 64 MILLION AN 18 INCREASE FROM THE PRIOR YEAR'S FIGURE OF 54 MILLION ADDITIONALLY THE CINCINNATI COMPANY SAID IT SIGNED A LETTER OF INTENT TO COMBINE THE OPERATIONS OF THE CONNECTING POINT LOUISVILLE KY WITH ITS LOUISVILLE COMPUTERLAND OPERATION AS PART OF THE TRANSACTION POMEROY WOULD ASSUME THE CONNECTING POINT'S OUTSTANDING SERVICE AND SALE CONTRACTS 9301200005 930120 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 FORD HOLDINGS INC 150 MILLION OF PERPETUAL PREFERRED STOCK PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE SIX MILLION SHARES OF 25 PREFERRED SERIES B WERE OFFERED WITH A DIVIDEND YIELD OF 8 THE NONCALLABLE SHARES ARE RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP FORD HOLDINGS IS A SUBSIDIARY OF FORD MOTOR CO NATIONSBANK CORP 400 MILLION OF SENIOR NOTES DUE DEC 1 1995 PRICED AS 5 3/8 AT 99734 TO YIELD 548 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 065 POINT ABOVE THE TREASURY 5125 NOTE DUE NOVEMBER 1995 RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO MAXUS ENERGY CORP 100 MILLION OF NOTES DUE FEB 15 2003 PRICED AS 9 1/2 AT 9925 TO YIELD 962 THE NOTES NONCALLABLE FOR SEVEN YEARS WERE PRICED THREE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BA3 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO MIDWEST POWER SYSTEMS INC 425 MILLION FIVEPART OFFERING OF FIRSTMORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY PAINEWEBBER INC THE FIRST PART 75 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 1998 WAS PRICED AS 6 1/4 AT 99514 TO YIELD 6365 THE NONCALLABLE ISSUE WAS PRICED 055 POINT ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART 75 MILLION OF FIRSTMORTGAGE BONDS DUE FEB 1 2000 WAS PRICED AS 6 3/4 AT 99473 TO YIELD 6846 THE NONCALLABLE ISSUE WAS PRICED 060 POINT ABOVE THE TREASURY SEVENYEAR NOTE THE THIRD PART 100 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2003 WAS PRICED AS 7 1/8 AT 99492 TO YIELD 7197 THE NONCALLABLE ISSUE WAS PRICED 060 POINT ABOVE THE TREASURY 10YEAR NOTE THE FOURTH PART 75 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2008 WAS PRICED AS 7 3/8 AT 99356 TO YIELD 7447 THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED 085 POINT ABOVE THE TREASURY 10YEAR NOTE THE FIFTH PART 100 MILLION OF FIRST MORTGAGE BONDS DUE FEB 1 2023 WAS PRICED AS 8 1/8 AT 98848 TO YIELD 8229 THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED 090 POINT ABOVE THE TREASURY 30YEAR BOND ALL TRANCHES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P SALOMON INC 150 MILLION OF NOTES DUE JAN 15 2000 PRICED AS 7 1/4 AT 9950 TO YIELD 734 THE NONCALLABLE NOTES WERE PRICED 108 POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE OFFERING IS RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE INVESTMENT BANKING ARM OF SALOMON INC TIME WARNER INC 1 BILLION TWOPART ISSUE OF SENIOR NOTES THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE FIRST PART 500 MILLION OF NOTES DUE FEB 1 1998 WAS PRICED AT PAR TO YIELD 745 THE NONCALLABLE ISSUE WAS PRICED 163 POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART 500 MILLION OF NOTES DUE FEB 1 2000 WAS PRICED AT PAR TO YIELD 795 THE NONCALLABLE ISSUE WAS PRICED 170 POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE NOTES ARE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P WASTE MANAGEMENT INC 250 MILLION OF NOTES DUE JULY 1 1995 PRICED AS 47/8 AT 9975 TO YIELD 4987 THE NONCALLABLE ISSUE WAS PRICED 038 POINT ABOVE A BLEND OF THE TREASURY TWOYEAR AND THREEYEAR NOTES RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO WHITMAN CORP 125 MILLION OF NOTES DUE FEB 1 2003 PRICED AS 7 1/2 AT 99667 TO YIELD 7548 THE NONCALLABLE ISSUE WAS PRICED 098 POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP BORGWARNER CORP INITIAL OFFERING OF 33 MILLION COMMON SHARES PRICED AT 1850 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO OAKWOOD HOMES CORP 25 MILLION COMMON SHARES PRICED AT 19875 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ORANGE COUNTY FLA HEALTH FACILITIES AUTHORITY 1213 MILLION OF HOSPITAL SERIES 1992 A B AND C REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP THE BONDS WILL BE USED FOR THE ORLANDO REGIONAL HEALTH CARE SYSTEM PROJECT YIELDS RANGE FROM 450 IN 1997 TO 620 IN 2024 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PORT OF PORTLAND ORE 115 MILLION OF SERIES NINE A AND NINE B PORTLAND INTERNATIONAL AIRPORT REVENUE BONDS PRICED BY A FIRST CHICAGO CAPITAL MARKETS INC GROUP YIELDS RANGE FROM 300 IN 1994 TO 625 IN 2023 THE 85 MILLION SERIES NINE B REVENUE BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORP 581 MILLION OF SERIES 7B OWNERSHIP OPPORTUNITY BONDS PRICED BY A PAINEWEBBER GROUP YIELDS RANGE FROM 410 IN 1995 TO 680 IN 2025 MOODY'S RATED THE BONDS DOUBLEA AND S&P RATED THEM DOUBLEAPLUS WISCONSIN 2792 MILLION OF GENERALOBLIGATION REFUNDING BONDS OF 1993 SERIES 1 PRICED BY A MERRILL LYNCH GROUP TO YIELD FROM 250 IN 1993 TO 590 IN 2009 THE BONDS ARE RATED DOUBLEA BY MOODY'S AND S&P TEXAS PUBLIC FINANCE AUTHORITY 654 MILLION OF SERIES 1993A GENERAL OBLIGATION BONDS WON BY A MORGAN STANLEY INC GROUP WITH A BID SETTING THE TRUE INTEREST COST AT ABOUT 5717 YIELDS WERE SET AT 250 IN 1993 TO 600 IN 2012 THE ISSUE HAS BEEN RATED DOUBLEA BY MOODY'S AND S&P AND DOUBLEAPLUS BY FITCH INVESTORS SERVICE CORP FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION OF SERIES 147 GOLD MODIFIABLE AND COMBINABLE SECURITIES OFFERED THROUGH NINE UNDERWRITERS THE OFFERING IS BACKED BY FREDDIE MAC GOLD 8 MORTGAGE SECURITIES THE DEAL CONSISTS OF AN INTERESTONLY CLASS AND PRINCIPALONLY CLASS AND 48 ADDITIONAL CLASSES WITH COUPONS RANGING FROM 05 TO 24 IN 05 INCREMENTS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS THE OFFERING SERIES 199316 IS BACKED BY FANNIE MAE 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 253 BILLION OF STRIPPED MORTGAGEBACKED SECURITIES TRUST 203 BACKED BY FANNIE MAE 8 MORTGAGE SECURITIES IS BEING OFFERED THROUGH 12 UNDERWRITERS THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 850 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS FEDERAL HOME LOAN MORTGAGE CORP 450 MILLION OF REMICS OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD 1471 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS WORLD BANK SUPRANATIONAL 10 BILLION SPANISH PESETAS OF 1245 EUROBONDS DUE FEB 9 1998 AT AN ISSUE PRICE OF 10150 VIA BANCO CENTRAL HISPANO AMERICANO YIELD 1245 ANNUALLY AFTER DISCOUNTING FULL FEES OF 1 1/2 REPUBLIC OF TURKEY SOVEREIGN 400 MILLION MARKS OF 9 1/2 EUROBONDS DUE FEB 18 2000 AT AN ISSUE PRICE OF 10250 VIA DG BANK REOFFER PRICE 10035 SPREAD OF 255 POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT ISSUE FEES 020 COUNCIL OF EUROPE AGENCY 200 MILLION MARKS OF EUROBONDS DUE FEB 17 2003 VIA TRINKAUS & BURKHARDT INTEREST 8 1/4 ANNUALLY FOR THE FIRST TWO YEARS AND SEMIANNUAL INTEREST THEREAFTER CALCULATED AT 13 MINUS THE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 030 HOKUETSU PAPER MILLS LTD JAPAN 130 MILLION MARKS OF 4 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE FEB 11 1997 AT AN ISSUE PRICE OF 10250 VIA BAYERISCHE VEREINSBANK GUARANTEED BY DAIICHI KANGYO BANK FEES 2 1/4 GENERAL ELECTRIC CAPITAL CORP US PARENT 300 MILLION OF EUROBONDS DUE FEB 17 1998 WITH A 6 COUPON AT AN ISSUE PRICE OF 101175 VIA SWISS BANK CORP REOFFERED AT 9955 TO YIELD 611 A YIELD SPREAD OF 025 POINT ABOVE THE 6 TREASURY ISSUE DUE IN 1997 FEES 1 7/8 GE CAPITAL IS A UNIT OF GENERAL ELECTRIC CO NIPPON TELEGRAPH & TELEPHONE JAPAN 250 MILLION OF EUROBONDS DUE FEB 19 1998 WITH A 6 COUPON AND A REOFFERED PRICE OF 99354 VIA MERRILL LYNCH INTERNATIONAL YIELDS 615 ANNUALLY A YIELD SPREAD OF 024 POINT ABOVE THE TREASURY'S FIVEYEAR ISSUE FEES 1/4 CREDIT LOCAL DE FRANCE FRANCE 200 MILLION CANADIAN DOLLARS OF 7 7/8 EUROBONDS DUE AUG 10 1998 AT ISSUE AND FIXED REOFFER PRICE 9960 VIA LEHMAN BROTHERS INTERNATIONAL YIELD 795 AT THE REOFFER PRICE A MARGIN OF ABOUT 052 POINT ABOVE THE COMPARABLE GOVERNMENT BOND FEES 1 7/8 KREDIETBANK INTERNATIONAL FINANCE BELGIAN PARENT C100 MILLION OF 7 7/8 EUROBONDS DUE MARCH 10 1996 AT AN ISSUE PRICE OF 101625 TO YIELD 788 ANNUALLY AFTER EXCLUDING FEES VIA KREDIETBANK GUARANTEED BY KREDIETBANK NV FEES 1 3/8 NORSK HYDRO AS NORWAY 100 MILLION OF 9 3/4 EUROBONDS DUE FEB 26 2003 AT AN ISSUE PRICE OF 100335 VIA HAMBROS BANK LTD REOFFERED AT 9871 TO YIELD 996 ANNUALLY 115 POINTS ABOVE THE 10 GILT DUE IN 2003 FEES 2 SMITHKLINE BEECHAM CAPITAL US PARENT 100 MILLION OF 8 1/8 EUROBONDS DUE NOV 25 1998 AT AN ISSUE AND REOFFERED PRICE OF 99919 VIA NATWEST CAPITAL MARKETS LTD YIELD MARGIN OF 075 POINT ABOVE THE COMPARABLE GILT ISSUE GUARANTEED BY SMITHKLINE BEECHAM PLC FEES 030 9301200004 930120 ECONOMY SENATE PANEL CLEARS KANTOR FOR TRADE POST NOMINEE IN TOUGH STANCE ON EUROPE AND JAPAN EC ACCORD IS CRITICIZED BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVE NOMINEE MICKEY KANTOR TOOK AN AGGRESSIVE STANCE TOWARD TRADE RELATIONS WITH EUROPE AND JAPAN AS THE SENATE FINANCE COMMITTEE UNANIMOUSLY APPROVED HIS APPOINTMENT MR KANTOR OFFERING THE FIRST DETAILS OF THE CLINTON ADMINISTRATION'S TRADE POLICY CRITICIZED THE TERMS OF THE AGRICULTURAL TRADE AGREEMENT REACHED BY THE US AND EUROPEAN COMMUNITY IN NOVEMBER WHICH HEADED OFF A TRADE WAR AND BOOSTED WORLD TRADE TALKS EVEN AFTER THE AGREEMENT HE SAID EUROPEAN FARMERS WOULD HAVE FAR MORE SUBSIDIES THAN THEIR US COUNTERPARTS WE WILL HAVE SOME PROBLEM WITH A LEVEL PLAYING FIELD MR KANTOR SAID CONCERNING JAPAN MR KANTOR APPEARED SOMEWHAT SYMPATHETIC TO A PROPOSAL BY SEN DONALD RIEGLE THAT JAPAN BE REQUIRED TO REDUCE ITS TRADE IMBALANCE WITH THE US ABOUT 20 A YEAR WE CERTAINLY OUGHT TO SERIOUSLY CONSIDER THAT APPROACH MR KANTOR TOLD THE MICHIGAN DEMOCRAT WHO HAS LONG BEEN PUSHING THE CONCERNS OF US AUTO MAKERS IN ADDITION MR KANTOR SAID THAT AT THE FIRST MEETING OF THE NEW NATIONAL ECONOMIC COUNCIL HE WOULD RAISE THE QUESTION OF WHETHER THE US SHOULD INCREASE BY TENFOLD THE TARIFFS ON JAPANESE MINIVANS AS US AUTO MAKERS WANT THE TOUGH TRADE TALK BY MR KANTOR AND REPUBLICAN AND DEMOCRATIC LAWMAKERS ALIKE MOVED SEN JOHN CHAFEE TO WARN AGAINST THE DANGERS OF PROTECTIONISM ONE THING THAT CAN CREATE A WORLDWIDE DEPRESSION IS THE RECREATION OF TRADE BARRIERS THAT HAVE BEEN ELIMINATED THROUGH DECADES OF TRADE LIBERALIZATION THE RHODE ISLAND REPUBLICAN SAID THE NOMINEE A VETERAN LOBBYIST WITH NO EXPERIENCE IN INTERNATIONAL TRADE WAS CONSIDERED ONE OF THE CLINTON ADMINISTRATION'S MOST CONTROVERSIAL CHOICES HE AND HIS FIRM MANATT PHELPS PHILLIPS & KANTOR HAD REPRESENTED JAPANESE FIRMS INVOLVED IN SEMICONDUCTOR AND AUTO ISSUES LIKELY TO BE ADDRESSED BY THE TRADE REPRESENTATIVE'S OFFICE BUT NONE OF THE LAWMAKERS PRESSED MR KANTOR ON ANY POTENTIAL CONFLICT OR EXPRESSED CONCERN ABOUT HIS INEXPERIENCE INDEED ONE HOUR INTO THE HEARING THE NEW SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN D NY ASKED THE PANEL TO APPROVE MR KANTOR'S NOMINATION WHEN SEN CHAFEE OBJECTED THE NEW YORK DEMOCRAT BACKED OFF THIRTY MINUTES LATER THOUGH MR MOYNIHAN AGAIN MOVED TO VOTE ON MR KANTOR PROMPTING MR CHAFEE TO COMPLAIN WHY DO WE HAVE A HEARING IF WE'RE ALL GOING TO VOTE BEFORE WE HEAR FROM THE CANDIDATE THE LAWMAKERS THEN DECIDED TO WAIT UNTIL AFTER THE HEARING TO VOTE ON MR KANTOR'S NOMINATION THEY VOTED UNANIMOUSLY FOR THE NOMINATION EVEN THOUGH THEY HADN'T TAKEN THE TIME TO WAIT FOR MR KANTOR TO PROVIDE ANSWERS TO WRITTEN QUESTIONS THE FULL SENATE IS EXPECTED TO VOTE TOMORROW AT THE HEARING MR KANTOR WHO DEMONSTRATED THAT HE HAD STUDIED A BROAD RANGE OF TRADE ISSUES ALSO BACKED A PROPOSAL TO REESTABLISH A LAPSED PROVISION OF THE TRADE LAW CALLED SUPER 301 THAT PROVISION REQUIRES THE TRADE REPRESENTATIVE TO DESIGNATE PRIORITY COUNTRIES FOR TRADE RETALIATION AND HE WAS CRITICIAL OF A NEW EC PROVISION SETTING UP LOCALCONTENT REQUIREMENTS FOR GOVERNMENT PURCHASES OF TELECOMMUNICATIONS EQUIPMENT THE ONLY DOMESTIC INTEREST MR KANTOR SAID HE WOULDN'T VIGOROUSLY PUSH ABROAD WERE TOBACCO COMPANIES IF FOREIGN ANTISMOKING REGULATIONS ARE SCIENTIFICALLY BASED MR KANTOR SAID THEN WE SHOULD NOT BE TRYING TO OVERRIDE THEM IN SOME NEGOTIATION AND PUSH TOBACCO PRODUCTS MR KANTOR'S STATEMENT MAY HAVE BEEN AN ATTEMPT TO MAKE A BREAK FROM HIS LOBBYING CAREER HIS FORMER FIRM REPRESENTS CIGARETTE MAKER PHILIP MORRIS COS AND MR KANTOR LED A TOBACCO INDUSTRYFUNDED PUSH TO REPEAL A SMOKING BAN IN BEVERLY HILLS CALIF RESTAURANTS MEANWHILE THE SENATE ENERGY COMMITTEE VOTED TO RECOMMEND THE CONFIRMATION OF HAZEL O'LEARY AS ENERGY SECRETARY AT HER HEARING EARLIER IN THE DAY SHE PLEDGED TO MAXIMIZE ALL ENERGY CONSERVATION WHILE WORKING TO MAINTAIN AN ADEQUATE AND RELIABLE SUPPLY OF TRADITIONAL ENERGY SOURCES THE CHOICE OF MS O'LEARY WHO IS EXECUTIVE VICE PRESIDENT OF NORTHERN STATES POWER CO A MINNESOTABASED UTILITY HAS BEEN CRITICIZED BY SOME ENVIRONMENTAL GROUPS BECAUSE THE UTILITY RELIES PARTLY ON NUCLEAR AND COALGENERATED POWER BUT MS O'LEARY A FORMER FEDERAL REGULATOR IN THE ENERGY DEPARTMENT DURING THE CARTER ADMINISTRATION TOLD THE COMMITTEE THAT THE INDUSTRY HAS NOT SHAPED MY THINKING ON ENERGY MATTERS AND NOTED THAT SHE HAS WORKED AT NORTHERN STATES POWER ONLY THREE YEARS SHE VOWED TO CHANGE THE CULTURE AT THE ENERGY DEPARTMENT AND SAID THE DEPARTMENT'S CREDIBILITY COULD STAND LOTS OF IMPROVEMENT THE NOMINEE DECLINED TO STATE HER POSITIONS ON THE VARIOUS ENERGY TAXES THAT ARE BELIEVED TO BE UNDER CONSIDERATION BY THE CLINTON TRANSITION TEAM RANGING FROM A GASOLINE TAX TO A CARBON TAX BUT SHE PREDICTED THERE WILL BE NO PROPOSAL FORTHCOMING THIS YEAR ON AN ENERGY TAX LAST SUNDAY VICE PRESIDENTELECT AL GORE SAID ON NBCTV'S MEET THE PRESS THAT A BROADBASED ENERGY TAX IS UNDER DISCUSSION IN TESTIMONY BEFORE THE SENATE ENERGY COMMITTEE INTERIOR SECRETARYDESIGNATE BRUCE BABBITT PLEDGED TO SELL HIS FAMILY'S INTEREST IN A NORTHERN ARIZONA RANCH THAT IS INVOLVED IN AN INDIAN LAND SETTLEMENT THE DEPARTMENT IS OVERSEEING HE SAID THAT IF CONFIRMED HE WOULDN'T PARTICIPATE IN ANY DECISION AFFECTING THE TRANSACTION HE ALSO SOUGHT TO ASSURE COMMITTEE MEMBERS THAT HE WOULDN'T BE OVERLY SYMPATHETIC TO ENVIRONMENTAL CONCERNS IN DEALING WITH SUCH ISSUES AS FEDERAL GRAZING FEES ENDANGERED SPECIES AND MINING LAW MR BABBITT FOR THE PAST TWO YEARS HAS BEEN PRESIDENT OF THE LEAGUE OF CONSERVATION VOTERS WHICH RANKS THE ENVIRONMENTAL VOTING RECORDS OF LAWMAKERS MR BABBITT NOTED THAT AS GOVERNOR OF ARIZONA FROM 1978 TO 1987 HE WAS ABLE TO RECONCILE CONFLICTS ON SEVERAL ISSUES BETWEEN ENVIRONMENTAL INTERESTS AND THE INTERESTS OF DEVELOPERS AND INDUSTRY SEPARATELY ABOUT HALF OF MR CLINTON'S CHOICES RECEIVED PRELIMINARY APPROVAL INCLUDING WARREN CHRISTOPHER AS SECRETARY OF STATE ROBERT REICH TO BE LABOR SECRETARY REP MIKE ESPY TO BE AGRICULTURE SECRETARY FORMER SOUTH CAROLINA GOV RICHARD RILEY TO BE EDUCATION SECRETARY HENRY CISNEROS TO BE HOUSING AND URBAN DEVELOPMENT SECRETARY AND CAROL BROWNER TO HEAD THE ENVIRONMENTAL PROTECTION AGENCY IN ADDITION THE SENATE FINANCE COMMITTEE VOTED UNANIMOUSLY TO RECOMMEND THE CONFIRMATION OF DONNA SHALALA TO BE HEALTH AND HUMAN SERVICES SECRETARY ALTHOUGH COMMITTEE CHAIRMAN SEN MOYNIHAN CONTINUES TO HAVE SOME CONCERN ABOUT HER COMMITMENT TO WELFARE REFORM QUICK SENATE APPROVAL SEEN WITHIN HOURS OF MR CLINTON'S INAUGURATION TODAY THE FULL SENATE IS EXPECTED TO CONFIRM THREE OF HIS MOST IMPORTANT CABINET NOMINEES SEN LLOYD BENTSEN D TEXAS AS TREASURY SECRETARY MR CHRISTOPHER AS SECRETARY OF STATE AND REP LES ASPIN D WIS AS DEFENSE SECRETARY MR BENTSEN WILL PLAY A LEAD ROLE IN SHAPING ECONOMIC POLICY THE NEW PRESIDENT'S MOST URGENT PRIORITY AND MR CHRISTOPHER AND MR ASPIN WILL BE REQUIRED IMMEDIATELY TO HANDLE THE IRAQ CRISIS AS WELL AS THE FOREIGN POLICY TROUBLE SPOTS OF HAITI BOSNIA AND SOMALIA AN EARLY ISSUE FOR REP ESPY D MISS TO DEAL WITH IF HE IS CONFIRMED WILL BE THE PROPOSED REORGANIZATION OF THE AGRICULTURE DEPARTMENT IN HIS LAST FULL DAY IN OFFICE SECRETARY EDWARD MADIGAN YESTERDAY RELEASED FINAL RECOMMENDATIONS FOR STREAMLINING THE DEPARTMENT THEY INCLUDE OVERHAULING THE HEADQUARTERS OPERATIONS IN WASHINGTON REDUCING THE NUMBER OF AGENCIES WITHIN THE DEPARTMENT TO 13 FROM 26 AND CUTTING THE NUMBER OF COUNTYBASED FIELD OFFICES TO 6216 FROM 7407 9301200003 930120 CALGENE FORMS JOINT VENTURE DAVIS CALIF CALGENE INC SAID IT FORMED A JOINT VENTURE WITH PRIVATELY HELD QUADRANT HOLDINGS LTD CAMBRIDGE ENGLAND TO DEVELOP FOOD PRODUCTS USING THE NATURAL SUGAR TREHALOSE THE NEW COMPANY CALLED OSMOTICA WILL USE THE SUGAR WHICH HAS NATURAL PRESERVATIVE PROPERTIES AS AN INGREDIENT IN SOUPS CEREALS AND OTHER FOODS 9301200002 930120 FOREIGN EXCHANGE DOLLAR CONTINUES TO DECLINE AS TRADERS TAKE PROFITS AND PROBE ITS LOWER LIMITS BY CHARLENE LEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR CONTINUED TO CREEP LOWER TUESDAY IN TRADING LARGELY DRIVEN BY TECHNICAL FACTORS AS PLAYERS TAKING THEIR CUE FROM THE CURRENCY'S INABILITY TO RALLY ON HOSTILITIES IN IRAQ PROBED ITS LOWER LIMITS TRADERS SAID THE DOLLAR ALSO WAS HURT BY ADDITIONAL PROFITTAKING AS US PARTICIPANTS PLAYED CATCHUP FOLLOWING A THREEDAY HOLIDAY WEEKEND MOST BANKS IN THE US WERE CLOSED MONDAY FOR THE MARTIN LUTHER KING HOLIDAY AND THE MARKET PRACTICALLY SHUT DOWN WITH THE EARLY CLOSING OF THE INTERNATIONAL MONETARY MARKET IN CHICAGO LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16110 MARKS DOWN FROM 16135 MARKS AT MIDAFTERNOON MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12545 YEN SLIGHTLY BELOW 12550 YEN STERLING WAS TRADING AT 15465 DOWN FROM 15510 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16100 MARKS AND AT 12548 YEN THERE'S A SOFT TONE FOR THE BUCK SAID EARL JOHNSON A VICE PRESIDENT AT HARRIS TRUST & SAVINGS BANK IN CHICAGO THE MARKET'S ATTENTION HE ADDED REMAINS FIXED ON THE POSSIBILITY OF A WIDENING IN THE GAP BETWEEN US AND GERMAN SHORTTERM INTEREST RATES YOU'VE GOT PROSPECTS OF FIRM RATES THERE AND LOWER RATES HERE HE SAID TRADERS SAID A RECENT STRING OF OFFICIAL COMMENTS FROM GERMANY AS WELL AS AN UNREVISED MONEYSUPPLY FIGURE FOR NOVEMBER HAVE DASHED SPECULATION THAT A CUT IN GERMANY'S OFFICIAL INTEREST RATES COULD COME AS SOON AS TOMORROW FOLLOWING A REGULAR MEETING OF THE CENTRAL BANK'S POLICY MAKERS IN ITS JANUARY REPORT RELEASED TUESDAY THE BUNDESBANK LEFT THE PANGERMAN M3 MONEYSUPPLY GROWTH RATE UNREVISED AT 93 FAR ABOVE ITS 1992 TARGET OF 3555 GROWTH RESIDUAL TALK FOLLOWING A NEWS REPORT MONDAY THAT KEY AIDES TO PRESIDENTELECT CLINTON ARE CONSIDERING A DEFICITREDUCTION PACT WITH THE FEDERAL RESERVE THAT WOULD INCLUDE A CUT IN US INTEREST RATES ALSO WEIGHED ON THE DOLLAR DEALERS ADDED AS WAS THE CASE MONDAY THE MARKET PAID LITTLE IF ANY HEED TO EVENTS IN THE MIDDLE EAST AS USLED FORCES CONTINUED AIR ATTACKS ON IRAQI SITES LATER TUESDAY IRAQ ANNOUNCED A UNILATERAL CEASEFIRE IN THE TWO NOFLY ZONES PATROLLED BY ALLIED AIRCRAFT INSTEAD TRADERS SAID PARTICIPANTS WERE INTENT ON SHEDDING LONG DOLLAR POSITIONS AS THE US CURRENCY BROKE BELOW VARIOUS SUPPORT LEVELS ON THE TECHNICAL CHARTS ALTHOUGH THE DOLLAR BOUNCED OFF A KEY SUPPORT POINT AT 16060 MARKS MANY DEALERS AND ANALYSTS SAID THE MARKET APPEARS READY TO TEST A PSYCHOLOGICAL FLOOR AT 16000 MARKS AFTER THE CURRENCY'S RECENT RALLY RAN OUT OF STEAM AT 16500 ON JAN 8 9301200001 930120 LEISURE & ARTS THE NOT QUITE UNITED EUROPE BY PAUL LEVY OXFORD ENGLAND SINCE JAN 1ST WE HAVE ALL BEEN NEW EUROPEANS EVEN ME MORE OR LESS THOUGH I HOLD A US PASSPORT AS FOUR MILLION PEOPLE BRAVED THE MIDNIGHT COLD OF NEW YEAR'S EVE TO WATCH 1300 BEACONS BEING LIT IN A CHAIN THAT STRETCHED FROM ATHENS TO THE AZORES THE SINGLE MARKET WAS DECLARED OPEN FOR BUSINESS I HAPPENED TO BE WITH MY FAMILY IN A REMOTE HILL VILLAGE IN THE SOUTH OF FRANCE WE DIDN'T ACTUALLY NOTICE THAT WE'D BECOME EUROPEANS UNTIL WE WENT TO LEAVE NICE AIRPORT ON JAN 5 AND FOUND THE IMMIGRATION OFFICER ACTUALLY REFUSED TO AS MUCH AS GLANCE AT THE CLUTCH OF BRITISH PASSPORTS I HANDED HIM MY BLUE AMERICAN DOCUMENT WAS THE ONLY ONE THAT INTERESTED HIM AND THAT NOT VERY MUCH COME TO THINK OF IT I HAD AN INKLING THAT CHANGES WERE AFOOT WHEN I STOPPED AT THE AIRPORT DUTYFREE SHOP TO LOAD UP ON SCOTCH 90 FRANCS OR 16 A LITER AND VODKA 72 FRANCS OR 13 THE SALESWOMAN APOLOGIZED FOR THE FACT THAT SHE REQUIRED A SEPARATE BOARDING CARD FOR EACH PURCHASE EACH PASSENGER IS ALLOWED ONE LITER OF SPIRITS AND THAT EACH BOTTLE HAD TO BE TREATED AS A SEPARATE CREDITCARD TRANSACTION THIS WAS BECAUSE THOUGH CUSTOMS NO LONGER EXISTS IN THE CONVENTIONAL SENSE FOR PASSENGERS TRAVELING BETWEEN EUROPEAN COMMUNITY COUNTRIES THE EC IS ALLOWING THE DUTYFREE SHOPS TO CONTINUE TO OPERATE FOR A FEW MORE YEARS THE DUTYFREE SHOP SALESPEOPLE LIKE MY APOLOGETIC FRIEND IN NICE ARE THEREFORE IN THE AWKWARD POSITION OF ENFORCING THE DUTYFREE RULES AT POINT OF SALE IN SPITE OF THIS DID WE FEEL MORE EUROPEAN PERHAPS WE DID OUR LUGGAGE INCLUDED OUR SUPPER SOME LAMB CHOPS FROM THE EXCELLENT VILLAGE BUTCHER FOR WHEN WE RETURNED HOME TO AN EMPTY LARDER AND I FELT MARGINALLY LESS GUILTY THAN IN THE PAST WHEN I KNEW I WAS BENDING THE RULES AGAINST THE IMPORTATION OF RAW MEAT YOU WOULD THINK THAT WITH THE DISAPPEARANCE OF CUSTOMS BARRIERS YOU'D BE ALLOWED TO BRING HOME A PICNIC I NEVER DID FIND OUT IF MY LAMB CHOPS WERE CONTRABAND AS WE WERE FLYING I WAS UNABLE TO TAKE ADVANTAGE OF THE NEW RULING THAT YOU CAN IMPORT AS MUCH WINE AS YOU LIKE FOR YOUR PERSONAL CONSUMPTION THE SUGGESTED GUIDELINE PER PERSON IS 90 LITERS OR 10 CASES OF STILL WINE OR 60 LITERS OF SPARKLING PLUS 20 LITERS OF FORTIFIED WINE 10 OF SPIRITS AND 110 OF BEER THESE MUST NOT BE BOUGHT IN A DUTYFREE SHOP ANY MORE THAN THIS IN THE TRUNK OF YOUR CAR AND CUSTOMS WILL SUSPECT YOU OF HAVING COMMERCIAL AMBITIONS BUT ANY MORE THAN THIS AND YOU WILL BREAK YOUR CAR'S REAR AXLE ANYWAY OUR COMPANIONS WHO WERE DRIVING HOME MANAGED THREE CASES OF THE LOCAL WINE FROM PROVENCE WHERE WINEMAKING STANDARDS HAVE IMPROVED SO MUCH THAT IT IS NOW WORTH THE BOTHER AT LONDON'S HEATHROW AIRPORT MY BRITISH WIFE AND DAUGHTERS REQUIRED NO DOCUMENTS TO GET BACK INTO THE UK WHILE I HAD TO JOIN THE NORMAL PASSPORT LINE I COULD HAVE SNEAKED THROUGH BUT THEN I WOULDN'T HAVE HAD THE STAMP SHOWING I HAD LEGALLY REENTERED BRITAIN AS AN ALIEN WHEN WE GOT HOME I LOOKED THROUGH THE NEWSPAPERS THAT HAD BEEN DELIVERED WHILE WE WERE AWAY MOST OF THEM SEEMED TO CONTAIN DOUBLEPAGE SPREADS ON HOW NEWLY EUROPEANIZED BRITS SHOULD SHOP IN THE EASILY ACCESSIBLE FRENCH CHANNEL PORTS OF BOULOGNE OR CALAIS THERE WAS A DEFINITE EMPHASIS ON QUANTITY AT THE EXPENSE OF QUALITY THIS PARALLELS A TREND AT NEWSSTANDS WHERE WHOLE BOOKS ARE BEING SOLD THAT ARE BASICALLY GUIDES TO THE CHEAPER WINES SOLD IN FRENCH SUPERMARKETS AND THERE'S LE MAGAZINE WHICH I HAD NEVER NOTICED BEFORE IT IS A MAGAZINE FOR BRITS ENTIRELY ABOUT FRANCE WITH LOADS OF FRENCH REAL ESTATE ADVERTISING AND AN UPTOTHEMINUTE COVER FEATURING A PHOTOGRAPH OF THE PRINCESS OF WALES WITH THE HEADLINE SETTING UP COURT IN FRANCE THE PUBLISHERS OF THE EUROPEAN NEWSPAPER WHICH LOOKED AS THOUGH IT WOULD GO UNDER WITH ITS FORMER PROPRIETOR ROBERT MAXWELL REPORTS THAT IT IS FLOURISHING ON THIS WAVE OF EUROPEAN ENTHUSIASM WITH SALES AROUND THE 200000 MARK IT IS A VERY ODD JOURNAL INDEED FOR THIS COUNTRY MOST BRITISH NEWSPAPERS HAVE A NATIONAL CIRCULATION AND THERE IS THEREFORE NO JOURNALISTIC CONCEPT OF LOCAL NEWSSTORIES ARE WEIGHTED ACCORDING TO THEIR NATIONAL IMPORTANCE OR LACK OF IT BUT THE EUROPEAN HAS NO NATIONAL BASE AND IS CONSTANTLY HAVING TO MAKE DECISIONS ABOUT WHETHER ITS READERSHIP WILL FIND AN ARTICLE ON SAY DANISH POLITICS SEXY ENOUGH TO READ AND THE NEWSPAPER HAS ADOPTED A SILLY SOLUTION TO THE PROBLEM OF CONVERTING CURRENCIES BY GIVING ALL AMOUNTS FIRST IN A LOCAL CURRENCY AND THEN IN ECUS THE PURELY THEORETICAL ALLEUROPEAN CURRENCY THAT NOBODY BUT PROFESSIONAL MONEY MEN UNDERSTANDS I LEARNED FROM ITS PAGES THOUGH THAT PANEUROPEAN BARGAIN HUNTING IS THE CHIEF CONSEQUENCE OF THE SINGLE MARKET AT LEAST AS FAR AS US ORDINARY CITIZENS ARE CONCERNED THE ITALIANS ARE ON THE LOOKOUT FOR CLOTHES AND WATCHES IN PARIS DANES LUST AFTER CHEAP TOYS AND TIRES IN THE NETHERLANDS WHILE THE DUTCH WANT GERMAN COMPACT DISCS AND KITCHEN EQUIPMENT THE GERMANS MEANWHILE ARE HUNTING FOR COSMETICS AND STATIONERY IN THE CZECH REPUBLIC CITIZENS OF ALL THE COUNTRIES OF EUROPE ARE POURING INTO LONDON TO BUY OUR CHEAPER CLOTHES AND TOYS FOR EXAMPLE A NIKE TRACK SUIT COSTS A FRENCHMAN THE EQUIVALENT OF 145 IN PARIS BUT ONLY THE EQUIVALENT OF 69 IN LONDON THE REAL FUN WILL COME IN MAY WHEN THE AUTO MANUFACTURERS PUBLISH LISTS OF EC PRICES FOR NEW CARS WHICH DIFFER WILDLY IN PRICE FROM COUNTRY TO COUNTRY NOT ONLY CAN THEY BE BOUGHT ANYWHERE IN THE EC BUT FROM JULY 1994 ON MOTORISTS CAN SHOP AROUND FOR THEIR CAR INSURANCE ALL OVER EUROPE THIS OF COURSE WILL NOT RESULT IN THE BRITISH CHANGING THEIR MOST CHERISHED ECCENTRICITY EVEN THEN THEY WILL CONTINUE TO DRIVE ON THE LEFT SIDE OF THE ROAD 9301190146 930119 GENERAL TIRE MERGES MEXICAN OPERATIONS WITH GRUPO CARSO SA AKRON OHIO GENERAL TIRE INC SAID IT MERGED ITS TIRE MANUFACTURING OPERATIONS IN MEXICO WITH GRUPO CARSO SA PITTING IT AGAINST ARCHRIVAL GOODYEAR TIRE & RUBBER CO FOR TIRE SALES IN THAT COUNTRY FINANCIAL TERMS WEREN'T DISCLOSED HOWEVER GRUPO CARSO HOLDS THE MAJORITY STAKE AND OPERATING CONTROL OF THE NEW COMPANY GENERAL TIRE A UNIT OF GERMANY'S CONTINENTAL AG AND GRUPO CARSO UNIT EUZKADI BOTH CONTRIBUTED TWO PLANTS TO THE NEW COMPANY CALLED COMPANIA INDUSTRIAL LLANTERA SA WITH SUCH A LARGESCALE VENTURE GENERAL TIRE MIGHT CONSIDER INTEGRATING ITS MEXICAN AND US OPERATIONS TO INCREASE MANUFACTURING MARKETING AND DISTRIBUTION EFFICIENCIES THERE'S NOTHING SOLID ON THAT SAID ALAN OCKENE GENERAL TIRE PRESIDENT AND CHIEF EXECUTIVE OFFICER GENERAL TIRE BEGAN WORK ON THE AGREEMENT ABOUT A YEAR AGO SEEING IT AS A WAY TO CAPITALIZE ON MEXICO'S LONGTERM ECONOMIC GROWTH MR OCKENE SAID THE VENTURE HAS NEARLY 30 OF THE MEXICAN TIRE MARKET WHICH IS ABOUT THE SAME SHARE HELD BY GOODYEAR STILL THE NEW OPERATION FACES SEVERAL CHALLENGES PRODUCTIVITY MUST BE IMPROVED WHICH COULD BE DIFFICULT CONSIDERING STRICT WORK RULES FOLLOWED BY MEXICAN UNIONS THOSE PLANTS ARE GOING TO HAVE TO BE COMPETITIVE WITH THE BEST IN THE US SAID MR OCKENE GRUPO CARSO ALSO WILL HAVE TO MAKE A VERY SIZABLE INVESTMENT TO UPGRADE TECHNOLOGY IN ITS TWO PLANTS HE ADDED WHILE GENERAL TIRE EXPECTS ADMINISTRATIVE SAVINGS FROM THE COMBINATION OF 33 MILLION A YEAR IT WON'T COMBINE SALES FORCES ONE SALES GROUP WILL OFFER CONTINENTAL AND GENERAL TIRE BRANDS THE OTHER WILL SELL CONTINENTAL AND EUZKADI TIRES THAT ARRANGEMENT COULD HAMPER SALES SOME ANALYSTS SAID SEPARATE BRANDS MAKE IT MORE DIFFICULT TO PROVIDE A UNIFIED FRONT TO THE CONSUMER SAID HARRY W MILLIS OF FUNDAMENTAL RESEARCH IN CLEVELAND THIS IS USUALLY SOMETHING THAT HAS TO BE WORKED ON OVER TIME 9301190145 930119 HIBERNIA CORP POSTS PROFIT OF 31 MILLION FOR FOURTH QUARTER NEW ORLEANS HIBERNIA CORP CONTINUING TO REBOUND AFTER COMPLETING A COMPLEX FINANCIAL RESTRUCTURING REPORTED NET INCOME OF 31 MILLION OR FIVE CENTS A SHARE FOR THE FOURTH QUARTER IN THE YEAREARLIER PERIOD THE BANKING COMPANY POSTED A LOSS OF 358 MILLION OR 127 A SHARE FOR THE YEAR HIBERNIA POSTED A LOSS OF 64 MILLION OR 216 A SHARE INCLUDING 591 MILLION OF CHARGES RELATED TO THE RESTRUCTURING AND THE SALE OF ITS TEXAS BANK UNIT BUT THAT STILL REPRESENTS A SHARP IMPROVEMENT FROM 1991 WHEN THE COMPANY POSTED A LOSS OF 1656 MILLION OR 589 A SHARE PERSHARE EARNINGS REFLECT A NEAR TRIPLING OF SHARES OUTSTANDING TO AN AVERAGE OF 824 MILLION FOR 1992 FROM 283 MILLION THE PREVIOUS YEAR THE INCREASE WAS THE RESULT OF A RIGHTS OFFERING AND A DEBTFORSHARES SWAP WITH CREDITOR BANKS HIBERNIA SHARES FELL 25 CENTS APIECE TO 675 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN ITS ATTEMPT TO RECOVER FROM BAD LOANS ON REAL ESTATE AND HIGHLY LEVERAGED COMPANIES THAT PUSHED IT TO THE BRINK OF A REGULATORY TAKEOVER HIBERNIA HAS BECOME A CONSIDERABLY SMALLER COMPANY WITH ASSETS OF 473 BILLION AT THE END OF 1992 COMPARED WITH 602 BILLION A YEAR EARLIER A BIG PART OF THE REDUCTION CAME FROM THE SALE OF ITS TEXAS BANK WHICH HAD 1 BILLION IN ASSETS TO COMERICA INC THE SHRINKAGE COMBINED WITH THE FINANCIAL RESTRUCTURING PUSHED HIBERNIA'S CAPITAL RATIOS SUBSTANTIALLY ABOVE REGULATORY REQUIREMENTS THE COMPANY SAID HIBERNIA ALSO SAID THAT ITS ASSET QUALITY WAS IMPROVING POINTING OUT THAT NONPERFORMING ASSETS DECLINED TO 1799 MILLION AT YEAR END FROM 319 MILLION AT THE END OF 1991 RESERVES AGAINST POSSIBLE LOAN LOSSES WERE INCREASED TO 1421 OF NONPERFORMING LOANS IN 1992 COMPARED WITH 976 A YEAR EARLIER THE COMPANY ALSO NOTED THAT ITS PROVISION FOR POSSIBLE LOAN LOSSES TOTALED 663 MILLION IN 1992 DOWN FROM 1783 MILLION IN 1991 9301190144 930119 MARKETING & MEDIA ADVERTISING COLORADO AD CAMPAIGN TO THWART STATE BOYCOTT MAY BE MISDIRECTED BY MARJ CHARLIER COLORADO HAS BEEN TAKING IT ON THE CHIN FOR ITS CONSTITUTIONAL AMENDMENT PROHIBITING PASSAGE OF LAWS TO PROTECT HOMOSEXUALS FROM DISCRIMINATION CURRENT AD CAMPAIGNS AIMED AT THWARTING A BOYCOTT OF THE STATE MAY FAIL TO HELP COLORADO WORK ITS WAY OUT OF THE MESS CERTAINLY THERE IS CAUSE FOR PANIC AND ACTION IN COLORADO SINCE THE STATE'S VOTERS APPROVED THE ANTIGAY AMENDMENT IN NOVEMBER BARBRA STREISAND AND OTHER HOLLYWOOD FIGURES CALLED FOR A NATIONAL BOYCOTT OF THE STATE AND A NUMBER OF CONVENTIONS HAVE BEEN CANCELED AT LEAST EIGHT MAJOR CITIES HAVE VOTED TO BAN TRAVEL TO COLORADO OR TO STOP DOING BUSINESS WITH COMPANIES IN THE STATE THE NATIONAL ORGANIZATION FOR WOMEN AND AMERICANS FOR DEMOCRATIC ACTION HAVE ENDORSED THE BOYCOTT AS WELL A FEW COLORADO GROUPS ARE ATTEMPTING TO STEM THE BACKLASH BY ADVERTISING PLAINTIVE APPEALS IN NATIONAL PUBLICATIONS ASPEN AND THE ASPEN SKIING CO RAN ADS IN THE NEW YORK TIMES AND THE LOS ANGELES TIMES TELLING PEOPLE THAT ASPEN RESIDENTS VOTED AGAINST THE AMENDMENT THE DENVER CENTER FOR THE PERFORMING ARTS RAN ADS IN NOVEMBER IN VARIETY DAILY VARIETY AND THE HOLLYWOOD REPORTER ASKING THE ENTERTAINMENT INDUSTRY TO SUPPORT DENVER BOULDER AND ASPEN WHICH ALL VOTED AGAINST THE ANTIGAY MEASURE NOW THE DENVER METRO CONVENTION AND VISITOR'S BUREAU HAS LAUNCHED A SELFPRODUCED JANUARY ADVERTISING CAMPAIGN TELLING READERS OF SEVERAL CONVENTION MAGAZINES DENVER IS GETTING A BLACK EYE BUT IS IT DESERVED THE FULLPAGE AD ARGUES THAT BOYCOTTING THE CITY WOULD HURT THOSE WHO OPPOSE THE AMENDMENT THE MOST EVEN THE CREW AND CAST OF PERRY MASON TV MOVIES WHICH ARE PRODUCED IN COLORADO TOOK OUT A TWOPAGE COLOR AD ATTACKING THE BOYCOTT BUT ADVERTISING IS THE WRONG APPROACH TO THE PROBLEM ACCORDING TO TOURISM OFFICIALS IN ARIZONA WHICH BECAME A PARIAH STATE FOR THE 1989 VOTE THAT REMOVED MARTIN LUTHER KING'S BIRTHDAY AS A HOLIDAY ON THE STATE CALENDAR IN TERMS OF AVERTING THE BOYCOTT ADVERTISING IS A FRIVOLOUS ATTEMPT SAYS ART BOUFFARD DEPUTY DIRECTOR OF THE ARIZONA HOTEL AND MOTEL ASSOCIATION IT WOULDN'T HAVE WORKED IN ARIZONA INSTEAD OF TRYING TO CHANGE OUTSIDERS' IMPRESSION OF ARIZONA THE STATE FOCUSED ON CHANGING THE MINDS OF ITS OWN VOTERS THEY WERE TOLD OF THE HIGH COST OF THEIR 1989 DECISION ARIZONA'S TRAVEL OFFICE SAYS THE BOYCOTT HAS CAUSED THE STATE TO LOSE AS MUCH AS 250 MILLION IN REVENUE INCLUDING THE LOSS OF THE 1993 SUPER BOWL WHICH WILL BE PLAYED ON JAN 31 IN PASADENA CALIF INSTEAD OF PHOENIX AS ORIGINALLY PLANNED ARIZONA VOTERS FINALLY APPROVED THE HOLIDAY IN NOVEMBER LARGELY BECAUSE OF A GRASSROOTS CAMPAIGN ORCHESTRATED BY THE HOSPITALITY INDUSTRY THE STATE'S 154000 RESTAURANT AND HOTEL WORKERS WERE ENCOURAGED TO REGISTER TO VOTE MANY NEVER HAD AND WERE GIVEN INFORMATION ABOUT THE IMPACT OF THE BOYCOTT ON THEIR INDUSTRY THE CAMPAIGN WHICH COST LESS THAN 2 MILLION WAS KEPT LOWKEY UNTIL TWO WEEKS BEFORE THE 1992 ELECTION GIVING ITS OPPOSITION LITTLE CHANCE TO FIGHT BACK ABOUT 200000 NEW VOTERS SHOWED UP AT THE POLLS IN NOVEMBER MR BOUFFARD SAYS AND THE VERY NEXT DAY THOUSANDS OF ROOMNIGHTS THE INDUSTRY'S MEASURE OF HOTEL ROOMS BOOKED FOR CONVENTIONS WERE BOOKED IN ARIZONA CITIES HE SAID SOME ORGANIZERS IN THE EFFORT TO OVERTURN THE AMENDMENT IN COLORADO ALSO BELIEVE ADVERTISING ESPECIALLY TO A NATIONAL AUDIENCE IS FUTILE ADVERTISING IS AN EMOTIONAL RESPONSE SAYS BOB SCHENKEIN OF SCHENKEINSHERMAN PUBLIC RELATIONS WHO HAS HELPED FORM A STATEWIDE COALITION TO PUSH FOR A NEW VOTE TO OVERTURN THE ANTIGAY RIGHTS AMENDMENT THE STATE OF COLORADO IS CAUGHT BETWEEN A ROCK AND A HARD PLACE OVER THE ISSUE WHILE STATE ATTORNEYS MUST DEFEND AMENDMENT 2 AS IT IS KNOWN AGAINST COURT CHALLENGES MANY COLORADO LEADERS INCLUDING GOV ROY ROMER OPPOSE THE LAW THE GOVERNOR SAYS HIS POSITION ON AMENDMENT 2 HAS CONTRIBUTED TO A SIXPOINT DECLINE IN HIS APPROVAL RATING FROM MAY TO DECEMBER BY LAW THE STATE CAN'T SPEND MONEY ON AN AD CAMPAIGN DEFENDING ITSELF IT IS UNLIKELY THAT SUCH AN EFFORT WOULD PLAY WELL IN COLORADO ANYWAY COLORADANS WHO IDENTIFY WITH A KIND OF WILD WEST INDEPENDENCE AREN'T TAKING KINDLY TO THE BOYCOTT IN NOVEMBER 47 OF THE STATE ELECTORATE VOTED AGAINST THE ANTIGAY MEASURE BUT BY THIS MONTH ONLY 36 OF COLORANDANS SAID THEY THOUGHT A REPEAL EFFORT WOULD SUCCEED ACCORDING TO A POLL PUBLISHED BY THE DENVER POST AND A LOCAL TV STATION JOSEPH NEE A COLORADO SPRINGS UPHOLSTERER WHO HAS FOUNDED THE ANTIBOYCOTT GROUP BACKOFF COLORADO SAYS THERE'S SOMETHING FUNDAMENTALLY WRONG WITH BOYCOTT SUPPORTERS INTERFERING WITH THE DEMOCRATIC PROCESS WE HAVE TO GET THEM OFF OUR BACKS AS WAS THE CASE WITH ARIZONA'S MARTIN LUTHER KING DAY DEBACLE MANY COLORADANS FEEL THEY HAVE BEEN UNFAIRLY TARGETED FOR PASSING AN AMENDMENT THAT WOULD PASS ELSEWHERE IF IT CAME UP FOR A VOTE IN GEORGIA IT IS A FELONY TO PARTICIPATE IN HOMOSEXUAL ACTIVITIES YET ATLANTA IS ONE OF THE CITIES THAT HAVE VOTED TO BOYCOTT COLORADO MR SCHENKEIN SAYS FULLY 135 CITIES COVERING 20 OF THE US POPULATION HAVE PASSED LAWS PROTECTING HOMOSEXUALS FROM DISCRIMINATION DENVER BOULDER AND ASPEN THE COLORADO CITIES MOST LIKELY TO BE HURT BY THE BOYCOTT HAD PASSED LAWS PROTECTING HOMOSEXUALS FROM DISCRIMINATION THOSE LAWS WERE SLATED TO BE OVERTURNED LAST FRIDAY BUT A COLORADO STATE JUDGE TEMPORARILY BLOCKED THE BAN ON GAYRIGHTS PROTECTIONS FROM TAKING EFFECT SAYING THAT HOMOSEXUALS HAVE A FUNDAMENTAL RIGHT NOT TO HAVE THE STATE ENDORSE AND GIVE EFFECT TO PRIVATE BIASES THE STATE SAID IT WOULD APPEAL THE RULING TO THE COLORADO SUPREME COURT AT THIS POINT IT IS DIFFICULT TO ASSESS THE LONGTERM ECONOMIC IMPACT OF THE AMENDMENT AND THE BOYCOTT ON COLORADO BOYCOTT COLORADO AN ACTIVIST GROUP CLAIMS THE IMPACT SO FAR IS 25 MILLION IN LOST REVENUE SOME DISPUTE THAT FIGURE DESPITE FRIDAY'S RULING BOYCOTT COLORADO OFFICIALS SAID THEY WOULDN'T CALL OFF THEIR NATIONWIDE BOYCOTT THE DENVER CONVENTION BUREAU SAYS IT HAS LOST TWO CONVENTIONS SO FAR ESTIMATING THE PRICE TAG AT ABOUT 5 MILLION BUT A SPOKESMAN SAYS THE MAJOR IMPACT COULD COME LATER AS ORGANIZATIONS ELIMINATE COLORADO FROM FUTURE SITE CONSIDERATION COLORADO SPRINGS HAS LOST TWO CONVENTIONS REPRESENTING ANOTHER 1 MILLION BUT HAS PICKED UP NEW CONVENTIONS TO REPLACE THEM EL PASO COUNTY WHICH INCLUDES COLORADO SPRINGS VOTED FOR THE AMENDMENT BY A 21 MARGIN YET COLORADO'S SKI RESORTS REPORTED A BANNER CHRISTMAS SEASON DESPITE THE BOYCOTT IN ASPEN RESERVATIONS FOR DECEMBER ROSE ABOUT 12 FROM 1991 STATEWIDE MANY RESORTS REPORTED BETTER CHRISTMAS CROWDS IN PART BECAUSE OF GOOD SNOW CONDITIONS THE SAME THING HAPPENED IN ARIZONA SAYS LEIA JAMES A SPOKESWOMAN FOR THE ARIZONA OFFICE OF TOURISM INDIVIDUAL TRAVELERS AND VACATIONERS DIDN'T CANCEL THEIR TRIPS BUT BIGMONEY CONVENTIONS DID IF COLORADO GROUPS MUST USE ADVERTISING TO COMBAT A BOYCOTT ADS PLACED IN CONVENTION PUBLICATIONS WOULD BE MOST EFFECTIVE SHE SAYS IT GIVES YOU SOMETHING TO TARGET DOES THE CALL FOR A BOYCOTT OF COLORADO BY HOMOSEXUAL RIGHTS GROUPS MAKE YOU MORE LIKELY OR LESS LIKELY TO SUPPORT REPEAL OF AMENDMENT 2 WILL THE BOYCOTT HURT THE STATE'S ECONOMY OR IN THE END WILL IT HELP IT DO YOU THINK COLORADO VOTERS WILL VOTE IN FAVOR OF REPEALING AMENDMENT 2 OR AGAINST REPEALING IT HAS THE REACTION TO THE PASSAGE OF AMENDMENT 2 BY THE GAY COMMUNITY HURT THE CAUSE OF GAY RIGHTS IN COLORADO OR HAS IT HELPED IT IN LIGHT OF THE PASSAGE OF AMENDMENT 2 WHAT DO YOU THINK ARE PEOPLE IN COLORADO MORE TOLERANT OR LESS TOLERANT OF HOMOSEXUALS NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC IS EXPECTED TO ASSIGN ITS 25 MILLION CORPORATE AD ACCOUNT TO FALLON MCELLIGOTT INDUSTRY EXECUTIVES SAID THREE WEEKS AFTER SPLITTING WITH WPP GROUP'S J WALTER THOMPSON THE ANTICIPATED ASSIGNMENT WHICH IS EXPECTED AS EARLY AS TODAY WOULD CONSOLIDATE NORTHWEST'S CORPORATE OR BRAND ADVERTISING WITH ITS REGIONAL RETAIL ADS AT FALLON THE ROLE OF WPP GROUP'S OGILVY & MATHER ANOTHER AGENCY IN THE NORTHWEST STABLE COULDN'T BE LEARNED NORTHWEST'S TRADE ADVERTISING IS EXPECTED TO REMAIN AT MINNEAPOLIS SHOP KOLESAR & HARTWELL INDUSTRY EXECUTIVES CONFIRMED A REPORT APPEARING IN ADWEEK MAGAZINE NORTHWEST PULLED ITS ACCOUNT FROM THOMPSON LATE LAST YEAR AFTER A DISPUTE OVER COMPENSATION SAYING IT WOULDN'T CONDUCT A REVIEW TO FIND A SUCCESSOR THE AIRLINE DECLINED TO COMMENT WHO'S NEWS TBWA ADVERTISING NAMED WILLIAM R FREEMAN III PRESIDENT OF ITS ST LOUIS OFFICE TBWA KERLICK SWITZER REPORTING TO THE OFFICE'S CHAIRMAN MIKE SWITZER MR FREEMAN 36 YEARS OLD WAS FORMERLY A VICE PRESIDENT AT LEO BURNETT CHICAGO ON THE MILLER ACCOUNT 9301190143 930119 WORLD MARKETS SHARE PRICES FINISH MIXED IN TOKYO AND LONDON BUT RALLY IN FRANKFURT ON RECONSTRUCTION OUTLOOK A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES ENDED NARROWLY MIXED MONDAY IN EXTREMELY THIN LISTLESS TRADING LONDON STOCKS CLOSED LITTLE CHANGED BUT FRANKFURT SHARES SCORED BROAD INCREASES FOR THE SECOND SESSION IN A ROW AS INVESTORS AGAIN FOCUSED ON FINANCING OF EASTERN GERMAN RECONSTRUCTION IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLIPPED 231 POINTS THURSDAY ROSE 10164 TO 1661724 THE MARKET WAS CLOSED FRIDAY FOR A HOLIDAY THE INDEX MOVED WITHIN A 123POINT RANGE ON TUESDAY THE NIKKEI INDEX ROSE 11136 POINTS TO CLOSE THE MORNING SESSION AT 1672860 MONDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT A DISMAL 140 MILLION SHARES COMPARED WITH 1705 MILLION IN THE PREVIOUS SESSION LOSERS LED GAINERS 486379 THE TOKYO STOCK PRICE INDEX OF ALL FIRST SECTION ISSUES WHICH FELL 355 POINTS THURSDAY EASED 084 TO 126707 MOST INVESTORS DIDN'T FIND ANY INCENTIVES TO BUDGE FROM THE SIDELINES THE BLEAK OUTLOOK FOR JAPANESE CORPORATE EARNINGS THIS YEAR AND NEXT YEAR IS MAKING INVESTORS UNRESPONSIVE TO MOST NEWS EVEN A POSITIVE DEVELOPMENT DID LITTLE TO BOOST ACTIVITY A RISE IN JAPANESE GOVERNMENT BOND FUTURES PRICES ON NEWS LAST THURSDAY THAT THE FINANCE MINISTRY'S TRUST FUND BUREAU WILL BEGIN TO MAKE REGULAR OUTRIGHT PURCHASES OF THE BONDS PUT DOWNWARD PRESSURE ON LONGTERM INTEREST RATES SOME TRADERS SAID THAT THE TOKYO MARKET REMAINS EXPENSIVE AT CURRENT LEVELS AND THAT INVESTORS INSTEAD ARE PUTTING THEIR MONEY TO WORK MORE PRODUCTIVELY IN OTHER ASIAN MARKETS INVESTORS WERE INCREASINGLY SKEPTICAL ABOUT A STRING OF NEWS REPORTS OF MEASURES THE JAPANESE GOVERNMENT IS CONSIDERING TO EASE STOCKSELLING PRESSURE A NEWS REPORT LAST FRIDAY SAID THE FINANCE MINISTRY WOULD ALLOW INSURANCE COMPANIES TO BOOK UNREALIZED PROFITS ON STOCKHOLDINGS WITHOUT SELLING THE SHARES TO LOCK IN THOSE PROFITS BUT MARKET PARTICIPANTS SAID THE EFFECT ON STOCK PRICES WOULDN'T BE GREAT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 20 POINTS TO 27631 AFTER MOVING IN A NARROW 182POINT RANGE THE FT 30STOCK INDEX ADDED 20 POINTS TO 21406 VOLUME WAS A MODERATE 488 MILLION SHARES AFTER AN EARLY FLURRY OF DEALINGS INSPIRED BY A FIRM OPENING IN FTSE 100 STOCKINDEX FUTURES TRADING INVESTOR INTEREST WAS LOW ON THE FIRST DAY OF LONDON'S NEW TWOWEEK TRADING ACCOUNT SOME SUPPORT CAME FROM EXPECTATIONS OF A GERMAN INTERESTRATE CUT THIS WEEK THOUGH THOSE HOPES WERE DASHED WHEN A GERMAN CENTRAL BANK OFFICIAL REITERATED THAT LONGTERM INDICATIONS FOR GERMAN INFLATION REMAINED TOO HIGH LONDON TRADERS KEPT A WATCHFUL EYE ON THE MIDEAST WHERE THE US LED ANOTHER ALLIED ATTACK ON IRAQI TARGETS BUT THIS FAILED TO STIR THE STOCK MARKET IN FRANKFURT THE DAX 30STOCK INDEX WHICH GAINED 2081 POINTS FRIDAY RALLIED 2858 OR 19 TO 157313 ITS HIGHEST CLOSING LEVEL THIS YEAR PARTICIPANTS WEREN'T FAZED BY THE LACK OF AN AGREEMENT IN TALKS INVOLVING THE THREE PARTIES OF GERMANY'S CENTERRIGHT COALITION ON THE SOCALLED SOLIDARITY PACT WHICH IS INTENDED TO INCLUDE CONTRIBUTIONS FROM THE GOVERNMENT EMPLOYERS AND UNIONS TO HELP OVERCOME BURDENS OF GERMANY'S REUNIFICATION AN ACCORD IS EXPECTED SOON WHICH COULD ALLOW THE GERMAN CENTRAL BANK TO REDUCE ITS INTEREST RATES AND COMPANIES TO TRIM HIGH WAGE COSTS THE BANK IS EXPECTED TO LEAVE LENDING RATES UNCHANGED THIS WEEK THE UPBEAT SENTIMENT ABOUT A SOLIDARITY PACT OVERSHADOWED THE DAG WHITECOLLAR UNION'S DEMAND FOR A 65 PAY INCREASE FOR 430000 WESTERN GERMAN BANK EMPLOYEES WHEN TALKS BEGIN THURSDAY FRANKFURT'S RALLY ALSO STEMMED PARTLY FROM A SHORT SQUEEZE AS TRADERS WHO HAD SOLD SHARES FRIDAY SCRAMBLED TO COVER OPEN POSITIONS A SHORT SQUEEZE OCCURS WHEN THE PRICE OF A SECURITY RISES SHARPLY CAUSING MANY SHORT SELLERS TO BUY THE SECURITY TO COVER THEIR POSITIONS AND LIMIT LOSSES THIS LEADS TO EVEN HIGHER PRICES IN A SHORT SALE INVESTORS HOPE TO PROFIT BY BUYING SHARES CHEAPLY TO REPLACE THOSE THEY BORROWED AND SOLD AT A HIGHER PRICE OTHER MARKET PARTICIPANTS SOUGHT TO PUSH THE DAX THROUGH A TECHNICAL RESISTANCE LEVEL OF 1560 POINTS AND THEIR SUCCESS WAS VIEWED AS CLEARING THE WAY FOR A STRONG SUSTAINABLE RALLY PARIS SHARE PRICES GAINED MODERATELY IN A SESSION IN WHICH TRADERS WERE CAUTIOUS KEEPING AN EYE ON THE IRAQI SITUATION AND JUGGLING RUMORS OF POSSIBLE INTERESTRATE CUTS THE BOURSE DIDN'T SHOW MUCH INTEREST IN NEWS THAT FRENCH INDUSTRIAL PRODUCTION WAS WORSE THAN EXPECTED IN NOVEMBER POSSIBLY SIGNALING NEGATIVE GROWTH FOR THE 1992 FOURTH QUARTER AMSTERDAM STOCKS ROSE AFTER THE MARKET TENDED TO IGNORE LACKLUSTER PERFORMANCES IN LONDON AND TOKYO MILAN SHARES LED BY INDUSTRIAL ISSUES ENDED HIGHER IN FRENETIC TRADING AFTER A BULLISH OPENING IN THE WAKE OF FRIDAY'S HEFTY GAINS PRICES HAD JUMPED ABOUT 1 WHEN NEWS OF ANOTHER US AIR STRIKE ON IRAQ DIMMED ENTHUSIASM AND PUSHED STOCKS LOWER THOUGH GAINS WERE RETRIEVED LATER IN THE SESSION MADRID STOCKS' GAIN WAS LED BY THE BANKING AND CONSTRUCTION SECTORS AIDED BY UTILITIES WHICH CHEMICAL AND FOOD STOCKS POSTED LOSSES ZURICH EQUITIES ENDED LOWER IN ACTIVE TRADING AS PROFITTAKING EMERGED AFTER A RECENT RALLY SYDNEY PRICES EDGED HIGHER CONTINUING AN UPWARD TREND THAT STARTED LAST THURSDAY HONG KONG SHARES REBOUNDED FROM THE DAY'S LOWS TO FINISH HIGHER HELPED BY OVERSEASBASED BUYERS WHILE LOCAL INVESTORS REDUCED POSITIONS IN THE RUNUP TO THE CHINESE NEW YEAR HOLIDAY ON SATURDAY IN TAIPEI AFTER FIVE SESSIONS OF GAINS PRICES FELL IN A CORRECTION THOUGH A STOCK TRANSACTION TAX CUT IS EXPECTED TO STIMULATE VOLUME ESPECIALLY FROM TRADING IN SPECULATIVE SHARES BY SHORTTERM INVESTORS SEOUL STOCKS ROSE SLIGHTLY BUT FINISHED OFF THE DAY'S HIGHS AS BEARISH SENTIMENT GREW BECAUSE OF CONCERNS ABOUT LIQUIDITY BEFORE THE LUNAR NEW YEAR'S HOLIDAY STARTING THIS WEEKEND AMONG CORPORATE DEVELOPMENTS IN PARIS SHARES OF THE ELF SANOFI PHARMACEUTICAL AND PERFUME UNIT OF ELF AQUITAINE AND OF YVES SAINT LAURENT A FASHION AND PERFUME COMPANY WERE SUSPENDED FOR TWO DAYS PENDING AN ANNOUCEMENT ANALYSTS EXPECTED ELF SANOFI TO TAKE A STAKE IN YVES SAINT LAURENT ELF SANOFI SHARES LAST TRADED AT 1087 FRENCH FRANCS 19675 ELF AQUITAINE ENDED AT 3296 UP 06 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 9301190142 930119 BECKMAN INSTRUMENTS APPROVES PLAN AIMED AT OPENING UP BOARD FULLERTON CALIF BECKMAN INSTRUMENTS INC DIRECTORS PRESSURED BY AN INVESTMENT GROUP LED BY THE BASS FAMILY APPROVED A PLAN THAT COULD OPEN THE BOARD TO MORE OUTSIDE SHAREHOLDERS BECKMAN WAS SPUN OFF FROM SMITHKLINE BECKMAN CORP JUST BEFORE SMITHKLINE MERGED WITH BEECHAM GROUP IN 1989 TO FORM SMITHKLINE BEECHAM PLC BECKMAN MAKES LABORATORY INSTRUMENTS USED IN MEDICAL TESTING BASS GROUP WHICH HOLDS A 53 STAKE IN THE COMPANY FILED A STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION THIS MONTH RECOMMENDING THAT THE COMPANY OPEN ITS CORPORATE STRUCTURE TO OUTSIDERS AND NONMANAGEMENT SHAREHOLDERS IN THE FILING THE INVESTORS SUGGESTED THAT BECKMAN'S BOARD BE EXPANDED TO INCLUDE A MAJORITY OF TRULY INDEPENDENT DIRECTORS AND FORM AN INDEPENDENT NOMINATING COMMITTEE TO OVERSEE ALL FUTURE DIRECTOR SELECTIONS AS WELL AS A COMMITTEE TO STUDY HOW TO MAKE BECKMAN MORE OPEN TO SHAREHOLDERS WE BELIEVE THAT SHAREHOLDERS AND MANAGEMENT CAN ACHIEVE THE BEST RESULTS ONLY IF THEY WORK TOGETHER CONSTRUCTIVELY AND ENGAGE IN CONTINUING SUBSTANTIVE DIALOGUE SAID THOMAS M TAYLOR CHIEF INVESTMENT OFFICER FOR BASS GROUP UNDER THE PLAN APPROVED BY THE COMPANY BECKMAN WILL ADD FOUR OUTSIDE DIRECTORS OVER THE NEXT YEAR BRINGING THE TOTAL NUMBER OF DIRECTORS TO 12 SIX OUTSIDERS ALREADY SIT ON ITS EIGHTMEMBER BOARD BECKMAN SAID ITS BOARD WILL FORM A COMMITTEE TO EXAMINE THE LEVEL OF STOCKHOLDER PROTECTION IN THE COMPANY'S CHARTER AND BYLAWS BECKMAN ALSO SAID IT WOULD EXPLORE ADDITIONAL MECHANISMS DESIGNED TO ENHANCE STOCKHOLDERS' COMMUNICATION WITH MANAGEMENT AND THE BOARD THE COMPANY WASN'T MORE SPECIFIC THE PROGRAM WHICH WE PUT IN PLACE EXPANDS ACTIVITY THAT WAS ALREADY UNDER WAY AT BECKMAN AND ADDRESSES ISSUES DISCUSSED IN THE BASS GROUP'S FILING A BECKMAN SPOKESMAN SAID 9301190141 930119 ONTARIO GOVERNMENT PLANS DRUGSTORE BAN ON SELLING TOBACCO TORONTO THE ONTARIO GOVERNMENT INTENDS TO BAN TOBACCO SALES IN THE PROVINCE'S DRUGSTORES WHICH ARE ESTIMATED TO ACCOUNT FOR ABOUT A QUARTER OF ONTARIO'S CIGARETTE SALES THE PROPOSED MEASURE IS PART OF THE CANADIAN PROVINCE'S EFFORT TO CUT SMOKING IN HALF BY THE YEAR 2000 WE ARE DETERMINED TO REDUCE THIS CRITICAL HEALTH HAZARD AND IN PARTICULAR TO PREVENT CHILDREN FROM BECOMING ADDICTED TO TOBACCO SAID ONTARIO HEALTH MINISTER FRANCES LANKIN THE PLANNED BAN FOLLOWS THE REFUSAL OF SHOPPERS DRUG MART AND SOME OTHER PHARMACIES TO COMPLY WITH A REQUEST FROM ONTARIO'S COLLEGE OF PHARMACISTS A REGULATORY BODY FOR A VOLUNTARY BAN ON CIGARETTE SALES SHOPPERS DRUG MART A MAJOR DRUGSTORE CHAIN IS A UNIT OF IMASCO LTD MONTREAL WHICH ALSO CONTROLS IMPERIAL TOBACCO LTD CANADA'S LARGEST TOBACCO COMPANY OTHER MAJOR CANADIAN TOBACCO COMPANIES ARE RJRMACDONALD INC A UNIT OF RJR NABISCO HOLDINGS CORP AND ROTHMANS BENSON & HEDGES INC WHICH IS JOINTLY OWNED BY PHILIP MORRIS COS AND ROTHMANS INC A UNIT OF ROTHMANS INTERNATIONAL PLC THE PROPOSED LEGISLATION TO BE INTRODUCED IN THE SPRING ALSO WOULD BAN THE SALE OF MINICIGARETTE PACKS WHICH ARE POPULAR AMONG TEENAGERS BECAUSE OF THEIR COMPARATIVELY LOW COST SUCH PACKS CAN CONTAIN UP TO 15 CIGARETTES THE LAW ALSO WOULD RESTRICT SMOKING IN MOST PUBLIC BUILDINGS AND WOULD BAN SMOKING IN DAYCARE CENTERS SCHOOLS HOSPITALS AND NURSING HOMES SMOKING ALREADY IS PROHIBITED UNDER CANADIAN GOVERNMENT LAW IN FEDERALLY REGULATED BUILDINGS INCLUDING GOVERNMENT OFFICES AND BANKS 9301190140 930119 TECHNOLOGY & MEDICINE IN THE LAB ICE SENSOR DEVELOPED TO PROTECT JETLINERS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL ON A SNOWY NEW YORK NIGHT LAST MARCH 22 USAIR FLIGHT 405 SPED DOWN THE RUNWAY AT NEW YORK'S LAGUARDIA AIRPORT JUST AFTER TAKEOFF THE PLANE'S LEFT WING DIPPED AND THE F28 FOKKER CAREENED TO THE GROUND TUMBLED OVER AN EMBANKMENT AND PLUNGED INTO A FRIGID FLUSHING BAY TWENTYSEVEN PEOPLE WERE KILLED THE PLANE'S WINGS HAD BEEN SPRAYED WITH DEICING FLUID BUT SURVIVORS SAID ICE HAD BUILT UP ON THE AIRCRAFT WHEN IT WAS STUCK IN TAXIWAY TRAFFIC THE FEDERAL INQUIRY INTO THE REASONS FOR THE ACCIDENT HASN'T YET BEEN COMPLETED BUT THE DISASTER PROMPTED FEDERAL REGULATORS TO REWRITE DEICING RULES LARRY G STOLARCZYK WORKING IN HIS LAB IN A SPECK OF A TOWN BY THE FOOTHILLS OF THE COLORADO ROCKIES BELIEVES THERE IS A WAY TO MAKE SURE PLANES WON'T TAKE OFF WITH ICY WINGS AS DIRECTOR OF RESEARCH OF RIMTECH INC WHICH DEVELOPS RADIO IMAGING AND COMMUNICATIONS SYSTEMS THE 53YEAROLD ELECTRICAL ENGINEER IS TRYING TO DEVELOP AN ELECTRONIC SENSOR THAT DETECTS MEASURES AND TRANSMITS DATA ABOUT ICE BUILDUP IF SUCCESSFUL THE SENSOR CALLED KELVIN COULD IMPROVE TRAVEL SAFETY BY SIGNALING SLICK BRIDGES TO DRIVERS OR FROSTY WINGS TO PILOTS THE DEVICE COULD ALSO HELP OFFICIALS AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION DETERMINE ICE FORMATION ON THE LIQUIDOXYGEN FUEL TANKS OF THE SPACE SHUTTLE ICEDETECTION SENSORS FOR AIRCRAFT HAVE ALREADY BEEN DEVELOPED BUT AIRLINES SAY NONE IS RELIABLE ENOUGH TO REPLACE SIGHT INSPECTION AIRLINE PERSONNEL EITHER LOOK AT WING STRIPES OR NYLON RIBBONS ATTACHED TO THE WINGS TO DETERMINE IF ICE HAS FORMED TACTILE INSPECTION IS ALSO CONDUCTED WHEN WARRANTED MR STOLARCZYK PLANS TO CHANGE THAT IF OUR SENSOR CAN'T REPLACE PEOPLE IT ISN'T WORTH DOING HE SAYS SITTING INSIDE HIS UNLIKELY RESEARCH CENTER IN RATON NM HIS LAB IS A SQUAT BRICKANDCONCRETE BUILDING THAT WAS ONCE USED TO MANUFACTURE STEEL DOORS AND IS DWARFED BY FOUR SURROUNDING GAS STATIONS WHILE MR STOLARCZYK SAYS KELVIN WILL NOT BE READY UNTIL THE END OF NEXT YEAR PROTOTYPES NOW BEING TESTED HAVE ENCOURAGED SOME SCIENTISTS THE SENSOR LOOKS PROMISING RIGHT NOW FOR NASA ALTHOUGH THE AGENCY HASN'T TESTED IT YET SAYS DICKEY ARNDT CHIEF OF ELECTROMAGNETIC SYSTEMS AT THE JOHNSON SPACE CENTER IN HOUSTON A BRANCH OF NASA BUT KELVIN HOLDS EVEN MORE PROMISE FOR AIRLINES MR ARNDT BELIEVES IF YOU SAVE ONE PLANE FROM CRASHING IT'S PRETTY SIGNIFICANT ICE BUILDUP ON WINGS REDUCES THE PLANE'S LIFT ON TAKEOFF AND HAS BEEN RESPONSIBLE FOR AT LEAST SEVEN MAJOR US AIRLINE ACCIDENTS IN THE PAST 10 YEARS RESPONDING TO THE USAIR CRASH THE FEDERAL AVIATION ADMINISTRATION LAST SEPTEMBER ISSUED NEW DEICING REGULATIONS FOR AIRLINES RELATING TO THE APPLICATION OF ANTIFREEZE FLUID THE NEW RULES HOWEVER DO NOT FORCE AIRLINE PERSONNEL TO ACTUALLY TOUCH THE WINGS AND CRITICS CONTEND THAT SIGHT INSPECTION IS PRONE TO ERROR IN THE USAIR ACCIDENT ONE OF THE PILOTS TESTIFIED THAT HE CHECKED THE RIGHT WING FROM THE COCKPIT RIGHT BEFORE TAKEOFF BUT FOUND NO SIGN OF ICE THE ONLY DEFINITIVE METHOD OF CHECKING FOR ICE SAYS A GENERAL ACCOUNTING OFFICE REPORT CRITICAL OF THE RULES IS TO CLOSELY INSPECT AN AIRCRAFT'S EXTERIOR ENTER KELVIN NAMED FOR THE TEMPERATURE GAUGE AND 19THCENTURY BRITISH PHYSICIST THE DEVICE EMPLOYS TECHNOLOGY ALREADY DEVELOPED BY CLOSELY HELD RIMTECH BASED IN WESTMINSTER COLO RIMTECH DEVELOPED RADIO IMAGING TECHNIQUES TO DETECT UNDERGROUND COAL SEAMS AND ALSO INVENTED AN ELECTRONIC COMMUNICATIONS SYSTEM TO IMPROVE MINE SAFETY MR STOLARCZYK HAS KNOWN DOZENS OF MEN IN RATON KILLED IN MINE ACCIDENTS INCLUDING HIS DAUGHTER'S FIANCE KELVIN LOOKS LIKE A LONG FLASHLIGHT AT ITS HEAD IS THE ACTUAL SENSING MECHANISM WHICH IS FLAT AND 2 1/2 INCHES IN DIAMETER THIS SENSOR IS CONNECTED TO A NARROW MICROCOMPUTER BOARD WHICH IS ATTACHED TO A LITHIUM BATTERY THE CONTRAPTION HAS A CERAMIC COVER THAT LEAVES THE SURFACE OF THE SENSOR EXPOSED THE IDEA IS TO MOUNT THE SENSOR FLUSH ONTO AN AIRPLANE WING A BRIDGE OR SOME OTHER SURFACE WHEN ICE WATER OR SLUSH COVERS THE SENSOR THE SUBSTANCE ALTERS CERTAIN OF THE SENSOR'S ELECTRICAL PROPERTIES AND THOSE CHANGES CAN INDICATE THE PRESENCE OR THICKNESS OF ICE ALSO ON PLANE WINGS TREATED WITH A DEICING MIXTURE THE SENSOR CAN IDENTIFY THE FREEZING POINT OF THAT MIXTURE KELVIN'S MICROCOMPUTER THEN RELAYS THE ICE DATA TO SAY A RECEIVER IN THE COCKPIT OR AIR TRAFFIC CONTROL TOWER INSIDE MR STOLARCZYK'S CLUTTERED LAB HERE RESEARCHERS WEARING BOLO TIES TEST SENSORS BY PUTTING THEM INTO AN ICE CHAMBER BASICALLY A SMALL FREEZER THEN READING RESONANTFREQUENCY CHANGES ON A DIGITAL MONITOR THE ALLIANCE FOR TRANSPORTATION RESEARCH AN ALBUQUERQUE NM GROUP THAT INCLUDES THE LOS ALAMOS NATIONAL LABORATORY IS SEEKING RESEARCH GRANTS TO INTEGRATE KELVIN INTO A SMART HIGHWAY SYSTEM THE RESEARCH ORGANIZATION ENVISIONS INSTALLING KELVIN ONTO BRIDGES WHICH ICE UP MORE QUICKLY THAN ROADS AND LINKING THE SENSOR TO AN ELECTRONIC ROAD SIGNAL THAT ALERTS DRIVERS TO THE UPCOMING HAZARD SEVERAL OBSTACLES STILL CONFRONT KELVIN AMONG OTHER THINGS THE DEVICE'S CERAMIC COVERING DOESN'T CURRENTLY PROVIDE THE PROTECTION KELVIN NEEDS AND THE SENSOR ITSELF MUST BE MADE TO MATCH THE THERMODYNAMIC CHARACTERISTICS OF THE SURFACE IT'S ATTACHED TO OTHERWISE THE SENSOR'S SURFACE MAY READ MELTED ICE WHEN THE WING OR ROAD MAY ACTUALLY STILL BE FROZEN ANOTHER FACTOR IS COST BECAUSE A SINGLE SENSOR MAY MISS ICE BUILDUP ON OTHER PARTS OF THE WING RIMTECH ENVISIONS OUTFITTING THE TOP OF EACH WING WITH 10 DEVICES THE COMPANY ESTIMATES THAT EQUIPPING A SINGLE PLANE MAY COST 20000 PERHAPS THE GREATEST HURDLE WILL BE CONVINCING SKEPTICAL CUSTOMERS NAMELY AIRLINES WHICH WILL BE LOATH TO ENTRUST A CRITICAL JOB LIKE ICE DETECTION TO A HIGHTECH GIZMO THIS SYSTEM SOUNDS COMPLICATED TO ME WITH LOTS OF ELEMENTS THAT COULD FAIL SAYS WILLIAM FEY MANAGING DIRECTOR OF MAINTENANCE OPERATIONS FOR AMR CORP'S AMERICAN AIRLINES WE CAN'T INSTALL SOMETHING THAT MIGHT FAIL MR STOLARCZYK KNOWS THAT HE'S PUTTING MORE THAN HIS REPUTATION ON THE LINE IF WE BUILD A SENSOR THAT WE SAY DETECTS ICE AND IT DOESN'T DETECT ICE THAT'S A CRIMINAL ACT HE SAYS PEOPLE'S LIVES ARE AT STAKE 9301190139 930119 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JAN 19FEB 1 THE GREAT HALL OF THE LIBRARY OF CONGRESS REOPENS AFTER A THREEYEAR MULTIMILLIONDOLLAR RENOVATION WITH THIS EXHIBIT OF SOME 200 MANUSCRIPTS BOOKS AND MAPS FROM THE VATICAN LIBRARY MANY OF WHICH HAVE NEVER BEFORE BEEN ON PUBLIC DISPLAY HIGHLIGHTS INCLUDE DRAWINGS BY GALILEO OF SUNSPOTS HE OBSERVED IN 1612 WHICH PROVED THAT THE SUN WAS NOT THE UNCHANGING BODY THAT TRADITIONAL ARISTOTELIAN COSMOLOGY CONSIDERED IT TO BE A NINTHCENTURY GREEK MANUSCRIPT OF EUCLID'S ELEMENTS THE EARLIEST SURVIVING TEXT OF THIS IMPORTANT MATHEMATICAL WORK AND LOVE LETTERS WRITTEN BY HENRY VIII TO ANNE BOLEYN WHILE HE WAS STILL MARRIED TO CATHERINE OF ARAGON THOMAS JEFFERSON BUILDING LIBRARY OF CONGRESS FIRST STREET AND INDEPENDENCE AVENUE SE THROUGH APRIL 30 FOR FANS OF THE RECENT PBS SERIES THE PRIZE BASED ON THE PULITZER PRIZEWINNING BOOK OF THE SAME NAME BY DANIEL YERGIN AN EXHIBITION OF PHOTOGRAPHS ARTIFACTS AND MEMORABILIA ILLUSTRATING THE DISCOVERY AND DEVELOPMENT OF THE OIL AND GASOLINE INDUSTRY IN THE US THE ITEMS ARE DRAWN FROM COMPANY ARCHIVES MUSEUMS AND PRIVATE COLLECTIONS HIGHLIGHTS INCLUDE PHOTOGRAPHS SHOWING HOW OIL AND GAS RESHAPED THE LANDSCAPE WITH HIGHWAYS MOTELS AND GAS STATIONS A WOODEN MODEL OF AN 1861 OIL RIG OILCOMPANY SIGNS FROM THE EARLY 1900S ADVERTISEMENTS FROM THE '30S AND GASSTATION GIVEAWAYS SUCH AS TOYS AND GAMES PAINEWEBBER ART GALLERY 1285 AVENUE OF THE AMERICAS BETWEEN 51ST AND 52ND STREETS THROUGH FEB 5 212 7132885 MORE THAN 150 PRINTS FROM THE 1930S AND '40S BY BLACK ARTISTS MANY OF WHOM GOT INTO PRINTMAKING THROUGH COMMUNITY ART CENTERS SPONSORED BY FEDERAL WORKRELIEF PROGRAMS SUCH AS THE WORKS PROGRESS ADMINISTRATION FREQUENTLY THE PRINTS WHICH ARE FROM THE COLLECTION OF REBA AND DAVE WILLIAMS OF NEW YORK ADDRESS THE THEMES OF BLACK HISTORY AND EXPERIENCE ABOUT 90 OF THE PRINTS ARE AT THE EQUITABLE GALLERY 787 SEVENTH AVE AT 51ST STREET 212 5544818 THE REST CAN BE SEEN AT THE NEWARK MUSEUM 49 WASHINGTON ST 201 5966550 THROUGH FEB 27 ABOUT 70 PAINTINGS AND WORKS ON PAPER MANY IN CHALK BY THE VENETIAN RENAISSANCE ARTIST JACOPO BASSANO COMMEMORATING THE 400TH ANNIVERSARY OF HIS DEATH GRAMMY AWARDWINNING TRUMPETER FREDDIE HUBBARD LEADS AN ALLNIGHT TRIBUTE TO LATE FELLOW TRUMPETER JOHN BIRKS DIZZY GILLESPIE A BLUE NOTE REGULAR HUBBARD IS JOINED BY BENNY GREEN ON PIANO JAVON JACKSON ON SAX CHRISTIAN MCBRIDE ON BASS AND TONY REEDUS ON DRUMS ADDITIONAL ARTISTS INCLUDING PAQUITO D'RIVERA AND MILT JACKSON ARE EXPECTED BLUE NOTE 131 WEST 3RD ST TWO SESSIONS ON JAN 24 711 PM AND 1130 PM4 AM 212 4758592 A NEW SIR PETER HALL PRODUCTION OF MOZART'S THE MAGIC FLUTE CONDUCTED BY RANDALL BEHR AND DESIGNED BY BRITISH CARTOONIST GERALD SCARFE THE CAST INCLUDES SUMI JO ANN PANAGULIAS KURT STREIT RODNEY GILFRY AND HARRY PEETERS A NEW PRODUCTION OF WAGNER'S DAS RHEINGOLD STARRING JAMES MORRIS EKKEHARD WLASCHIHA BARRY MCCAULEY AND TATIANA TROYANOS JOHN CONKLIN IS THE DESIGNER ZUBIN MEHTA CONDUCTS AND AUGUST EVERDING DIRECTS CIVIC CENTER FOR PERFORMING ARTS 20 NORTH WACKER DRIVE JAN 23 26 29 FEB 1 3 6 9 AND 12 312 3322244 WITH TULSA OPERA THE COMPANY IS COPRODUCING THE AMERICAN PREMIERE OF ROSSINI'S ARMIDA BRENDA HARRIS SINGS THE TITLE ROLE OF THE SORCERESS OPPOSITE JEFFREY FRANCIS RANSOM WILSON CONDUCTS AND NICHOLAS MUNI DIRECTS ORDWAY MUSIC THEATRE 345 WASHINGTON ST ST PAUL JAN 22 24 28 AND 30 612 2244222 9301190138 930119 WHO'S NEWS ICF INTERNATIONAL INC ICF INTERNATIONAL INC FAIRFAX VA ROBERT W PAGE 65 YEARS OLD WAS NAMED A DIRECTOR AT THIS ENVIRONMENTAL ENGINEERING AND CONSULTING FIRM MR PAGE WHO IS EXECUTIVE VICE PRESIDENT AT MCDERMOTT INTERNATIONAL INC AN ENERGY SERVICE COMPANY IN WASHINGTON INCREASES THE BOARD TO SEVEN MEMBERS 9301190137 930119 WORK & FAMILY BY SUE SHELLENBARGER THIS YEAR'S PROSPECTIVE BUSINESSSCHOOL GRADUATES ARE MORE CONCERNED THAN PRIOR CLASSES WITH BALANCING WORK AND PERSONAL LIFE PLACEMENT OFFICIALS SAY DESPITE THE GRIM OUTLOOK CREATED BY WIDESPREAD LAYOFFS IN SOME INDUSTRIES JOBSEEKING MBA CANDIDATES AT TOP SCHOOLS ARE GIVING HIGH PRIORITY TO THE QUALITY OF FAMILY AND PERSONAL LIFE AN INFORMAL WALL STREET JOURNAL SURVEY OF BUSINESSSCHOOL PLACEMENT DIRECTORS SHOWS OF 12 PLACEMENT OFFICIALS CONTACTED AT THE UNIVERSITY OF CHICAGO NORTHWESTERN STANFORD AND OTHER UNIVERSITIES 11 SAID THIS YEAR'S GRADUATES WOULD RANK BALANCING JOB AND PERSONAL PURSUITS INCLUDING FAMILY AMONG THEIR FIVE HIGHEST PRIORITIES IN CHOOSING AN EMPLOYER FIVE YEARS AGO IT WOULDN'T HAVE MADE THE TOP FIVE THEY SAID SOME MBA STUDENTS INCLUDING A GROWING NUMBER OF PARENTS AND DUALCAREER COUPLES ARE LOOKING FOR JOBS THAT DEMAND ONLY MODERATE TRAVEL AND RELOCATION OTHERS SEEK COWORKERS WHO SHARE A COMMITMENT TO FAMILY OR SUCH POLICIES AS FLEXIBLE SCHEDULING AND FAMILY LEAVE MORE GRADSTOBE BELIEVE IT'S OK TO BE CONCERNED WITH THESE THINGS SAYS JEANNE HUSAIN CAREERSERVICES HEAD AT THE UNIVERSITY OF CHICAGO'S GRADUATE BUSINESS SCHOOL CORPORATE LAYOFFS HAVE MADE SOME JOB SEEKERS MORE DETERMINED TO STAY ROOTED IN FAMILY OR PERSONAL LIFE IN ANOTHER ERA EMPLOYEES MIGHT HAVE SACRIFICED A LOT FOR THEIR EMPLOYER SAYS KAREN DOWD PLACEMENT HEAD AT THE UNIVERSITY OF VIRGINIA'S DARDEN SCHOOL BUT LACKING THE PROSPECT OF JOB SECURITY MANY SAY THEY WILL LOOK ELSEWHERE FOR SATISFACTION THOUGH CONSULTING IS HOT THE FIELD'S FREQUENT TRAVEL AND LONG HOURS ARE DETERRING MANY STUDENTS SAYS ROGER MULLER HEAD OF CAREER DEVELOPMENT AND PLACEMENT AT NORTHWESTERN'S KELLOGG SCHOOL A VANDERBILT UNIVERSITY MBA CANDIDATE REJECTED A 100000AYEAR CONSULTING OFFER IN FAVOR OF A HOSPITALADMINISTRATION POST PAYING MUCH LESS SAYS PETER VERUKI PLACEMENT HEAD AT VANDERBILT'S OWEN SCHOOL SOME RECRUITERS ARE GEARING THEIR PITCHES ACCORDINGLY ONE COMPANY INTENT ON RECRUITING STANFORD MBAS SELLS ITSELF AS A VERY GOOD CONSULTING FIRM THAT IS COMMITTED TO A BALANCED LIFESTYLE SAYS MAUREEN MCNULTY DIRECTOR OF THE CAREERMANAGEMENT CENTER AT STANFORD THE PITCH HELPED TRIPLE ITS STANFORD RECRUITS TO SIX LAST YEAR EMPLOYEES CARING FOR ELDERLY RELATIVES MAY BE LESS LIKELY TO QUIT THEIR JOBS THAN PREVIOUSLY BELIEVED A STUDY SUGGESTS PAST RESEARCH FOUND THAT NEARLY ONETHIRD OF EMPLOYEES CARING FOR ELDERLY RELATIVES CONSIDER QUITTING BECAUSE OF THE NEEDS OF THE RELATIVES NOW A STUDY TRACKING CARE GIVERS OVER SEVERAL YEARS BY SHARON TENNSTEDT A SENIOR RESEARCHER AT THE NEW ENGLAND RESEARCH INSTITUTE IN WATERTOWN MASS INDICATES THOSE INTENTIONS MAY BE OVERSTATED IN THE STUDY ONLY 33 OF CARE GIVERS SURVEYED OVER A SEVENYEAR PERIOD QUIT WORKING WHILE 83 CHANGED JOBS A LARGER PROPORTION 14 REDUCED THEIR WORK HOURS AND 15 CHANGED THEIR SCHEDULES THAT DOESN'T MEAN MANAGERS CAN RELAX SAYS GAIL G HUNT OF GIBSON HUNT ASSOCIATES A WASHINGTON DC CONSULTING FIRM THE PRODUCTIVITY OF CARE GIVERS MAY STILL SUFFER FROM TARDINESS ABSENTEEISM AND CONSTANT DISTRACTIONS SHE SAYS AND THE STRESS OF THEIR ROLES CAN CAUSE THEM EMOTIONAL PROBLEMS MANAGERS SHOULD BE TRAINED TO SPOT TROUBLE TALK WITH THE WORKERS AND REFER THEM TO HELP SHE SAYS WHEN SITCOM HEROINE MURPHY BROWN FIRST TOOK HER BREAST PUMP TO WORK COWORKERS WERE HORRIFIED HER BOSS MISTOOK IT FOR A MEGAPHONE THEN STARTED AVOIDING HER FOR FEAR OF ENCOUNTERING HER USING IT NOW COMES A PROGRAM TO END ALL THAT A BREASTFEEDING SUPPLY AND CONSULTATION SERVICE FOR EMPLOYERS OFFERED BY MEDELA A MCHENRY ILL UNIT OF MEDELA AG A BAAR SWITZERLAND MEDICALEQUIPMENT MAKER THE COMPANY PROVIDES BREAST PUMPS AND A LACTATION CONSULTANT AND SETS UP PRIVATE ONSITE PUMP ROOMS ABOUT 25 EMPLOYEES AT AMOCO'S HEADQUARTERS IN CHICAGO ARE USING THE SERVICE AND ABOUT 50 OTHER COMPANIES HAVE INQUIRED ABOUT IT MEDELA SAYS THE SERVICE AIMS TO REDUCE TIME LOST FROM THE JOB BY WORKING MOTHERS BREASTFEEDING IS A LEARNED ART SAYS GOTTHILF WENIGER PRESIDENT OF MEDELA'S US UNIT WITHOUT SUPPORT MANY WORKING MOTHERS FIND IT DIFFICULT TO STAY ON A PUMPING SCHEDULE OR FIND PLACES TO PUMP AND STORE MILK WE HAVE FOUND A LOT OF MOTHERS PUMPING IN RESTROOMS IN CONDITIONS THAT ARE JUST TERRIBLE HE SAYS MANY WOMEN TRY TO COPE BY WEANING THEIR BABIES PREMATURELY BUT THAT CAN REDUCE INFANTS' IMMUNITY TO DISEASE RONA COHEN AN ASSISTANT NURSING PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES AND PROGRAM MANAGER FOR MEDELA SURVEYED LOS ANGELES DEPARTMENT OF WATER AND POWER EMPLOYEES WITH INFANTS SHE FOUND THAT 93 OF FORMULAFED INFANTS FELL ILL DURING THE TWOYEAR STUDY VS 59 OF BREASTFED INFANTS SO THE NURSING MOTHERS HAD MUCH LOWER ABSENCE RATES SEPARATELY DOW CHEMICAL'S DOW USA SUBSIDIARY IN MIDLAND MICH AND AMERICAN TELEPHONE & TELEGRAPH'S NCR UNIT IN DAYTON OHIO HAVE PROGRAMS SIMILAR TO MEDELA'S DOW'S OFFERING HAS OPENED UP THE CULTURAL CLIMATE DRAWING INTEREST FROM MALE AND FEMALE MANAGERS A SPOKESWOMAN SAYS WE DON'T HAVE WOMEN HIDING OUT IN THE BATHROOM ANY MORE TO PUMP MILK THE NUMBER OF US CHILDCARE WORKERS WILL RISE BY NEARLY HALF BY 2005 MAKING IT THE 15THFASTESTGROWING OCCUPATION THE BUREAU OF LABOR STATISTICS SAYS THE BIGGEST FACTOR IN EMPLOYEES' RELOCATION DECISIONS IS SPOUSES' WILLINGNESS TO MOVE SAYS A STUDY BY RESEARCHERS AT LOYOLA UNIVERSITY CHICAGO AND NORTHWESTERN UNIVERSITY SPOUSES DISAGREE MORE OFTEN ON TRANSFERS NOW THAN 10 YEARS AGO AND WORRY MORE ABOUT THE EFFECTS ON CHILDREN THE STUDY FINDS 9301190136 930119 LONGDISTANCE SECTOR IS SEEN OUTPACING LOCAL PHONE COMPANIES IN 4TH QUARTER BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WHILE THE LONGDISTANCE INDUSTRY BLAZES AHEAD THE NATION'S BIGGEST LOCAL PHONE COMPANIES ARE EXPERIENCING CONTINUED SLUGGISH GROWTH IN OPERATING EARNINGS AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP AND SPRINT CORP ARE ALL EXPECTED TO REPORT DOUBLEDIGIT GROWTH IN OPERATING EARNINGS FOR THE FOURTH QUARTER WITH AT&T IN THE LEAD AT&T'S OPERATING EARNINGS COULD RISE 22 TO 24 FROM THE 1991 QUARTER SEVERAL ANALYSTS ESTIMATED NEVERTHELESS LONGDISTANCE INDUSTRY OFFICIALS EXPECT LESS ROBUST GROWTH IN CALLING VOLUME THAN THEY HAD ANTICIPATED SAID ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST FOR GOLDMAN SACHS & CO OUR BASIC STORY IS THAT THE LONGDISTANCE INDUSTRY LOOKS VERY GOOD AND WILL CONTINUE TO DO WELL SAID BLAKE BATH AN ANALYST WITH SANFORD C BERNSTEIN & CO AND IT WILL BE TOUGHER AND TOUGHER FOR THE REGIONAL BELL COMPANIES AS THEY GET MORE AND MORE COMPETITION EARNINGS FOR THE SEVEN REGIONAL BELL COMPANIES WILL BE MARKED BY A NUMBER OF SIGNIFICANT ONETIME CHARGES IN THE FINAL QUARTER OF 1992 AS THEY WERE IN THE 1991 QUARTER IN A WAY WE HAVE TO SEPARATE THE REAL FROM THE SURREAL AS FAR AS EARNINGS ARE CONCERNED SAID GOLDMAN'S MR MORRIS NYNEX CORP FOR INSTANCE REPORTED A FOURTH QUARTER LOSS OF 124 A SHARE IN 1991 BUT REALLY HAD OPERATING EARNINGS OF 145 A SHARE HE SAID SIMILARLY PACIFIC TELESIS GROUP WHICH ANNOUNCED PLANS LAST MONTH TO SPIN OFF ITS CELLULAR AND INTERNATIONAL TELEPHONE OPERATIONS REPORTED NET INCOME OF 40 CENTS A SHARE IN THE 1991 QUARTER BUT HAD OPERATING EARNINGS OF 77 CENTS NYNEX BASED IN WHITE PLAINS NY IS EXPECTED TO TURN IN ONE OF THE BEST PERFORMANCES AMONG THE LOCAL PHONE COMPANIES WITH OPERATING EARNINGS GROWTH OF ABOUT 7 THE CONSENSUS IS 158 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH GTE CORP IS ALSO EXPECTED TO BE A GROUP LEADER WITH A ZACKS CONSENSUS ESTIMATE OF 59 CENTS MEANWHILE PACIFIC TELESIS HURT BY A FEEBLE CALIFORNIA ECONOMY COULD BE DOWN 10 YEAROVERYEAR MR MORRIS SAID THE CONSENSUS IS FOR OPERATING EARNINGS OF 71 CENTS A SHARE THE REGIONAL BELLS AND GTE LIKELY WILL REPORT STRONGER GROWTH IN THE NUMBER OF TELEPHONE LINES IN SERVICE A TREND THAT TRACKS THE IMPROVEMENT IN THE ECONOMY ALSO THE NUMBER OF NEW CELLULAR TELEPHONE SUBSCRIBERS PICKED UP LAST QUARTER REFLECTING A SPURT FROM HOLIDAY PROMOTIONS AND A STRONGER ECONOMY SOUTHWESTERN BELL WILL LIKELY LEAD THE GROUP WITH A BLOWOUT IN SUBSCRIBER GAINS PREDICTED DANIEL REINGOLD A TELECOMMUNICATIONS ANALYST WITH MORGAN STANLEY & CO BUT HE ALSO ADDED THAT REVENUE PER SUBSCRIBER WILL CONTINUE DECLINING AT THE 6 TO 7 RATE OF THE LAST FEW QUARTERS THE CONSENSUS FOR SOUTHWESTERN BELL CORP'S OPERATING ARNINGS IS 122 A SHARE AS IN PAST YEARS ONETIME CHARGES WILL CLUTTER RESULTS AMERITECH CORP FOR EXAMPLE ANNOUNCED LAST MONTH THAT IT WILL TAKE A 18 BILLION CHARGE FOR ADOPTING ACCOUNTING RULE CHANGES FOR POSTRETIREMENT BENEFITS AND FOR CERTAIN OTHER BENEFITS FOR FORMER EMPLOYEES WHILE THE CHARGE WILL RESULT IN A LOSS OF MORE THAN 5 A SHARE FOR THE FOURTH QUARTER OPERATING EARNINGS ARE EXPECTED TO DROP SLIGHTLY FROM 1991 RESULTS THE CONSENSUS IS FOR 123 A SHARE OPERATING EARNINGS THE ZACKS CONSENSUS ESTIMATES FOR OTHER BABY BELLS ARE 76 CENTS A SHARE FOR BELL ATLANTIC CORP AND 81 CENTS A SHARE FOR BELLSOUTH CORP AND U S WEST INC THE YEAR AHEAD ISN'T PARTICULARLY PROMISING FOR THE LOCAL PHONE COMPANIES YOU ARE SEEING DIMINISHING RETURNS ON THEIR COST CONTAINMENT EFFORTS MR MORRIS SAID ADDING THAT GROWTH FOR THE YEAR WILL BE IN THE 4 TO 5 RANGE FOR THE BELL COMPANIES HE PREDICTED 1993 IS NOT GOING TO BE A BANNER YEAR PACIFIC TELESIS GROUP REPORTED 1991 FOURTHQUARTER OPERATING EARNINGS OF 71 CENTS A SHARE THE FIGURE WAS MISSTATED AS 77 CENTS A SHARE IN AN ARTICLE TUESDAY ABOUT PHONE COMPANIES' FOURTHQUARTER EARNINGS EXPECTATIONS 9301190135 930119 MUTUAL FUNDS FIDELITY MOVES CLOSER TO A HEDGE FUND BY CRAIG TORRES AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MANY ORDINARY FOLKS WISH THEY COULD INVEST IN HEDGE FUNDS AGGRESSIVE INVESTMENT PARTNERSHIPS THAT MAKE BIG BETS ON STOCKS BONDS AND CURRENCIES AROUND THE GLOBE BUT THE FUNDS OFTEN REQUIRE INVESTORS TO PUT UP 1 MILLION TO GET IN THE DOOR NOW FIDELITY INVESTMENTS THE NATION'S BIGGEST MUTUAL FUND GROUP HAS ROLLED OUT ITS NEW MILLENNIUM FUND WHICH IS A STEP TOWARD THE BROAD FLEXIBILITY OF A HEDGE FUND AND HAS A 2500 MINIMUM INVESTMENT FIDELITY PORTRAYS NEW MILLENNIUM AS JUST ANOTHER GROWTHSTOCK FUND THIS IS NOT IN ANY WAY SHAPE OR FASHION A HEDGE FUND SAYS WILLIAM HAYES DIRECTOR IN CHARGE OF ALL OF FIDELITY'S STOCK OPERATIONS IT'S A NORMAL GROWTHORIENTED FIDELITY MUTUAL FUND BUT NOT SO NORMAL FIDELITY SAYS NEW MILLENNIUM HAS THE WIDEST INVESTMENT FLEXIBILITY OF ANY OF ITS 82 STOCK FUNDS GET THIS NEW MILLENNIUM CAN INVEST IN THE STOCK MARKET IN JUST ABOUT ANY WAY ITS MANAGER PLEASES THERE ARE NO LIMITATIONS ON THE SIZE OF THE STOCKS IT BUYS THE AMOUNT OF FOREIGN STOCKS OR THE CURRENCIES AND COUNTRIES IN WHICH THE FUND INVESTS NEW MILLENNIUM CAN ALSO USE OPTIONS AND FUTURES INCLUDING CUSTOMIZED OVERTHECOUNTER OPTIONS TO GAIN EXPOSURE TO FOREIGN OR DOMESTIC SECURITIES INDEXES NEAL MILLER NEW MILLENNIUM'S MANAGER SAYS HE ISN'T INCLINED TO USE MODERN INVESTMENT WEAPONS SUCH AS DERIVATIVES OR EVEN USE HIS ABILITY TO HEDGE 25 OF THE FUND WITH FUTURES AND OPTIONS BUT PRESUMABLY FIDELITY DIDN'T GIVE THE 50YEAROLD MR MILLER ONE OF THE BROADEST INVESTMENT CHARTERS FOR NOTHING MR MILLER WAS BROUGHT TO FIDELITY BY FORMER MAGELLAN FUND CHIEF PETER LYNCH IN 1990 AND MR MILLER HAS A HISTORY OF MAKING CONCENTRATED AGGRESSIVE AND UNCONVENTIONAL INVESTMENTS THAT HAVE BEAT THE MARKET OVER THE PAST FOUR YEARS MR MILLER IS AN UNUSUAL CHOICE FOR FIDELITY BECAUSE HE WAS HIRED FROM THE OUTSIDE AT AN OLDER AGE THAN MOST FIDELITY MANAGERS HE ALSO GOT HIS JOB WITHOUT GOING THROUGH FIDELITY'S TRADITIONAL CAREER PATH OF DOING RESEARCH AND THEN RUNNING ONE OF FIDELITY'S SELECT OR INDUSTRY SECTOR FUNDS IN 1991 MR MILLER'S ACCOUNT AT FIDELITY FOR INSTITUTIONAL INVESTORS GAINED 4689 BEATING THE TOTAL RETURN ON THE STANDARD & POOR'S 500STOCK INDEX BY 1642 PERCENTAGE POINTS INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS AND LAST YEAR HIS ACCOUNT WAS UP 1159 WHICH BEAT THE S&P BY 397 PERCENTAGE POINTS MR MILLER DESCRIBES HIMSELF AS A STOCK PICKER WHO TRIES TO BE EARLY ON A VARIETY OF TREND CHANGES I AM LOOKING AT FORCES OF CHANGE THROUGH FOUR OR FIVE FILTERS HE SAYS THESE INCLUDE LEGISLATIVE CHANGE DEMOGRAPHIC CHANGE CHANGES IN SOCIAL ATTITUDES AND THOSE BROUGHT ABOUT BY NEW PRODUCTS OR EVENTS SUCH AS EARTHQUAKES OR VOLCANIC ERUPTIONS TO KEEP ABREAST HE IS A VORACIOUS READER OF OFFBEAT TRADE JOURNALS SUCH AS COGENERATION AND RESOURCE RECOVERY AND ADHESIVES AGE WHERE HE RECENTLY SPOTTED AN INTERESTING PIGEONREPELLENT COMPANY LIKE A HOTMONEY HEDGEFUND MANAGER HE SEEKS THE MOST ELOQUENT INVESTMENT EXPRESSION OF BIG TRENDS IN INDIVIDUAL STOCKS THE BROAD SCENARIO IS GREAT BUT YOU HAVE TO PUT MEAT ON THE BONES SPECIFIC STOCKS HE SAYS IT'S NOT A HEDGE FUND BUT CERTAINLY THE STARTING POINT IS LOOKING FOR WINDS OF CHANGE THAT ARE GOING TO FILL THE SAILS OF SPECIFIC STOCKS ONE OF HIS LARGEST HOLDINGS FOR EXAMPLE IS HERMAN MILLER AN OFFICE FURNITURE COMPANY OFFICE FURNITURE HARDLY SEEMS TO BE A PLACE TO PUT MONEY WHEN THE STOCK MARKET IS GOING BONKERS OVER TECHNOLOGY COMPANIES BUT HERE IS MR MILLER'S THINKING THERE IS A GLUT OF COMMERCIAL REAL ESTATE THAT WILL TAKE AT LEAST 12 YEARS TO FILL TO GET TENANTS BACK INTO THE BUILDINGS OWNERS ARE NOT ONLY GOING TO HAVE TO CUT COSTS BUT THEY WILL HAVE TO PROVIDE ATTRACTIVE OFFICE SPACE WITH NEW FURNITURE ANOTHER PICK IS DIEBOLD WHICH MAKES AUTOMATED TELLER MACHINES THE NEW MILLENNIUM MANAGER HAS NOTICED THAT MORE AND MORE ATMS ARE BEING INSTALLED IN UNUSUAL LOCALES SUCH AS GROCERY STORES HOW ABOUT A SOCIAL ATTITUDE PICK TRY VF CORP MAKER OF LEE JEANS MR MILLER STARTED TEARING JEAN ADS AND HANGING THEM ON HIS WALL PONDERING THEIR SOCIAL AND ECONOMIC MEANING SOMETHING WAS GOING ON IN APPAREL MR MILLER SAYS DESCRIBING HIS THOUGHT PROCESS ALL THIS WHITECOLLAR LAYOFF ALL THIS MONITORING OF PERFORMANCE PEOPLE STARTED TO SAY THIS IS A TOUGH WORLD' ALL THIS PRESSURE SO HOW DO YOU OFFSET PRESSURE BY DREAMING YOU'RE A COWBOY THE COWBOY LOOK CAME IN VOGUE VALUE THE HOWTOESCAPEPRESSURE TREND PUT IT ALL TOGETHER AND THE ANSWER IS BLUE JEANS VF CORP MR MILLER SAYS HE ALSO LIKES COMPANIES WHERE MANAGEMENT IS BUYING THEIR OWN STOCK AND THAT HAVE OPERATIONAL ABILITY TO CAPTURE AN INDUSTRY TURN HE CONSTANTLY TESTS HIS IDEAS AGAINST REALITY WITH PHONE CALLS OR VISITS TO MANAGEMENT HE'S PRETTY PATIENT SAYS MR LYNCH HIS FIDELITY COLLEAGUE SOMETIMES YOU CAN BE OUT OF PHASE WITH SUCH A STYLE WHEN THE MERCKS PROCTER & GAMBLES AND COKES ARE SURGING NOBODY CARES ABOUT THESE COMPANIES BUT EVENTUALLY THE FUNDAMENTALS OF THESE STOCKS START DOING BETTER MR LYNCH SAYS THAT THE FUND'S WIDE LATITUDE FITS MR MILLER'S STYLE WHICH NEEDS TO FIND THE BEST STOCK IN WHATEVER MARKET OR COUNTRY TO CAPTURE A TREND CHANGE WHOEVER TURNS OVER THE MOST ROCKS WINS HE'S A STOCKBYSTOCK PERSON MR LYNCH SAYS ONE SIGN OF NEW MILLENNIUM'S UNIQUE STATUS AT FIDELITY IS THAT IT WILL CLOSE TO NEW INVESTORS WHEN ITS ASSETS REACH 500 MILLION MANY FUND MANAGERS LIMIT THE SIZE OF THEIR FUNDS TO PRESERVE FLEXIBILITY AND IN HOPE OF KEEPING RETURNS HIGH FIDELITY HAS LET OTHER FUNDS BALLOON IN SIZE MOST NOTABLY MAGELLAN WHICH NOW EXCEEDS 22 BILLION IN ASSETS DESPITE NEW MILLENNIUM'S UNUSUALLY BROAD CHARTER FIDELITY AND MR MILLER ARE TAKING PAINS TO SAY THAT MR MILLER WON'T BE A GUNSLINGER SAYS FIDELITY'S MR HAYES THERE IS A BIG DIFFERENCE BETWEEN WHAT MICHAEL STEINHARDT IS DOING AND WHAT NEAL IS GOING TO BE DOING MR STEINHARDT IS A TOP HEDGE FUND MANAGER INDEED FIDELITY SAYS THERE WILL BE NO DIRECT SHORT SALES OF STOCKS BETS THAT STOCKS WILL FALL ONLY MODERATE TURNOVER OF THE PORTFOLIO NO ENORMOUS BETS ON ONE OR TWO STOCKS AND NO GIGANTIC COMPENSATION AWARD TO ITS MANAGER MR MILLER NEW MILLENNIUM OPENED TO INVESTORS ON DEC 28 AND NOW HAS 15 MILLION IN ASSETS FOR THE MOST PART MUTUAL FUNDS DO NOT HAVE THE LIBERTY TO INVEST IN THE AGGRESSIVE MANNER OF HEDGE FUNDS FOR INSTANCE MOST FUNDS HAVE DIVERSIFICATION REQUIREMENTS RESTRICTING THEM FROM HEAVILY INVESTING IN A PARTICULAR INDUSTRY GEOGRAPHIC REGION OR CURRENCY DESPITE HURDLES A FEW FUNDS DO EMPLOY SHORT SALES KAUFMANN FUND WHICH HAD THE BEST FIVEYEAR RECORD OF ANY STOCK FUND THROUGH DEC 31 RESERVES 5 TO 10 OF ITS PORTFOLIO FOR SHORT SALES WHICH ITS TWO MANAGERS REFER TO AS A HEDGE THE DOMINANT PART OF THE FUND'S GAINS HOWEVER COME FROM THE STOCKS IT OWNS AMONG THE FEW FUNDS THAT ASPIRE TO HEDGEFUNDLIKE FLEXIBILITY ARE THE FOUR DREYFUS STRATEGIC STOCK FUNDS DREYFUS STRATEGIC WORLD INVESTING LP FOR INSTANCE HAS GREAT LATTITUDE IN USING FUTURES AND IN CONCENTRATING ITS INVESTMENTS IN A PARTICULAR SECTOR LIKE A HEDGE FUND AND AS A LIMITED PARTNERSHIP IT CAN BOOK SHORTTERM INCOME WITHOUT FACING ONEROUS TAX PENALTIES DREYFUS STRATEGIC INVESTING ANOTHER DREYFUS CORP FUND SHORTS STOCKS AND USES DERIVATIVE INSTRUMENTS ALTHOUGH IT IS NOT ORGANIZED AS A LIMITED PARTNERSHIP HAVING SOME OF THE CAPABILITIES OF A HEDGE FUND DOES NOT GUARANTEE SUCCESS FOR A MUTUAL FUND JUST LAST YEAR SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO CLOSED A HEDGEFUNDLIKE MUTUAL FUND SHEARSON MULTIPLE OPPORTUNITIES PORTFOLIO LP THE FUND COULD SHORT STOCKS ANYWHERE IN THE WORLD THE FUND WAS DISCONTINUED ALTHOUGH IT WAS PERFORMING FINE A SHEARSON SPOKESWOMAN SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER SAYS THE SHEARSON FUND ACTUALLY HAD MEDIOCRE RETURNS WITH RELATIVELY HIGH RISK IN PART BECAUSE IT HAD SUCH WIDE LATITUDE ABOUT ITS INVESTMENTS THEY MADE BAD DECISIONS MR REKENTHALER SAYS 9301190134 930119 AUTO FIRMS PLAN 232 RISE IN OUTPUT OF CARS AND LIGHT TRUCKS IN 1ST PERIOD BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT US AUTO MAKERS BETTING ON A REBOUND IN SALES ARE PLANNING A 232 INCREASE IN CAR AND LIGHT TRUCK PRODUCTION FOR THE FIRST QUARTER COMPARED WITH A WEAK YEARAGO PERIOD HOWEVER GENERAL MOTORS CORP SAID IT WILL ELIMINATE IN LATE MARCH ONE OF TWO SHIFTS AT ITS OSHAWA ONTARIO NO 1 CAR ASSEMBLY PLANT LAYING OFF 1450 EMPLOYEES EIGHT MONTHS EARLIER THAN PREVIOUSLY EXPECTED A GM CANADA SPOKESMAN CITED WEAK DEMAND AND SLOW ECONOMIC RECOVERY IN THE US FOR CUTTING PRODUCTION THE OSHAWA NO 1 ASSEMBLY PLANT BUILDS GM'S HIGHVOLUME CHEVROLET LUMINA MIDSIZE CAR GM HAS FOUR OTHER ASSEMBLY PLANTS THAT BUILD MIDSIZE FAMILY CARS AT LEAST ONE OF WHICH ALSO IS RUNNING JUST ONE SHIFT GM PREVIOUSLY SAID IT WOULD SHUT BOTH OF ITS OSHAWA CAR ASSEMBLY PLANTS NEXT NOVEMBER TO RETOOL FOR THE NEW GENERATION CHEVROLET LUMINA LAYING OFF 7400 WORKERS GM HAD PLANNED TO CALL BACK ONLY 6000 OF THOSE LAID OFF WORKERS IN EARLY 1994 THE BIGGEST PRODUCTION INCREASES PLANNED BY US AUTO MAKERS FOR THE FIRST QUARTER ARE COMING FROM DETROIT'S BIG THREE WHILE SOME JAPANESE AUTO MAKERS ARE SCALING BACK PRODUCTION PLANS AT THEIR US FACTORIES DETROIT IS EXPECTING AN ACCELERATION OF THE SALES RATE IN THE FIRST QUARTER SAID JOHN CASESA AUTO ANALYST AT WERTHEIM SCHRODER & CO AND THE FIRSTQUARTER SCHEDULES REFLECT CONFIDENCE IN MAINTAINING OR INCREASING SHARE GAINS IN 1993 COLLECTIVELY GM FORD MOTOR CO AND CHRYSLER CORP PLAN A 33 JUMP IN PRODUCTION OF MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS A SEGMENT OF THE MARKET THEY DOMINATE SALES OF SOME LIGHT TRUCKS TEND TO BE MORE PROFITABLE THAN THE SALE OF PASSENGER CARS AND A SURGE IN TRUCK SALES COULD HELP DETROIT'S PROFITS ALTOGETHER THE 10 MAJOR AUTO MAKERS THAT ASSEMBLE CARS IN THE US PLAN TO BUILD 2796160 CARS AND LIGHT TRUCKS IN THE FIRST QUARTER UP FROM THE 2268712 BUILT A YEAR AGO INDUSTRY SOURCES SAID DETROIT IS MOVING AGGRESSIVELY LARGELY REACTING TO A RECENT RELEASE OF ECONOMIC INDICATORS POINTING TO RENEWED GROWTH IN VARIOUS SECTORS DURING COMING MONTHS RETAIL SALES AS WELL AS CAR SALES ROSE SIGNIFICANTLY IN DECEMBER A SIGN THAT CONSUMERS ARE FEELING BETTER ABOUT THE US ECONOMY BUT INDUSTRY ANALYSTS NOTE THAT CONSUMERS RELIED ON CREDIT OR DREW FROM SAVINGS TO MAKE HOLIDAY PURCHASES WHICH COULD MAKE CONSUMERS LESS LIKELY TO PUT UP LARGE CASH OUTLAYS FOR NEW VEHICLES AND AUTO ANALYSTS CAUTION THAT IF ANTICIPATED VEHICLE SALES FALL SHORT OF PLANNED PRODUCTION SCHEDULES THEN SECONDQUARTER PRODUCTION OUTPUT COULD BE AT RISK THE SECOND QUARTER IS A CRITICAL PERIOD FOR AUTO MAKERS AS A LARGE PORTION OF THEIR SALES AND PROFITS ARE GENERATED DURING THE WARMEST DAYS OF THE YEAR WE'RE NOT OUT OF THE WOODS YET SAID STEPHEN GIRSKY PAINEWEBBER INC'S AUTO ANALYST I WOULDN'T BE SURPRISED IF WE SAW A LITTLE TRIMMING IN PRODUCTION SCHEDULES THE LATEST PRODUCTION PLANS CALL FOR PASSENGERCAR OUTPUT TO RISE 177 TO 1609208 CARS UP FROM 1367046 DETROIT'S BULLISH PLANS TO RAISE CAR PRODUCTION BY A COMBINED 18 FOR THE BIG THREE OFFSET PRODUCTION CUTS AT SOME JAPANESEOWNED OR JOINTVENTURE ASSEMBLY PLANTS HONDA MOTOR CO HAD SAID LAST SUMMER THAT IT WOULD SLASH PRODUCTION AT ITS TWO US CAR ASSEMBLY PLANTS IN THE 1992 FOURTH QUARTER AND 1993 FIRST QUARTER THE LARGEST PRODUCTION SLOWDOWN EVER AT HONDA'S US FACILITIES HONDA NOW PLANS TO BUILD 13483 FEWER CARS IN THE CURRENT QUARTER THAN IT DID IN THE YEARAGO PERIOD MITSUBISHI MOTORS CORP WITH AN AVERAGE 225DAY SUPPLY OF UNSOLD DOMESTIC CARS SLASHED ITS FIRSTQUARTER PRODUCTION PLANS AT ITS DIAMONDSTAR PRODUCTION PLANT IN NORMAL ILL NEARLY 21 OR 8490 CARS THE NEW UNITED MOTOR MANUFACTURING INC ASSEMBLY PLANT JOINTLY OWNED BY GM AND TOYOTA MOTOR CORP CUT ITS PLANNED FIRSTQUARTER OUTPUT BY 137 OR 8681 CARS NUMMI BUILDS THE GEO PRIZM FOR GM AND THE COROLLA FOR TOYOTA INDUSTRYWIDE STOCKS OF UNSOLD DOMESTIC CARS AVERAGED A 66DAY SUPPLY THROUGH THE END OF DECEMBER AN INVENTORY LEVEL THAT IS CONSIDERED IDEAL AUTO ANALYSTS NOTE THAT STRONG TRUCK SALES ARE PROPPING UP AN OTHERWISE MEDIOCRE AUTO MARKET AUTO MAKERS PLAN TO BUILD 1186952 LIGHT TRUCKS IN THE FIRST QUARTER UP 316 FROM THE 901666 BUILT A YEAR AGO CHRYSLER'S PLANNED 692 BOOST IN LIGHT TRUCK OUTPUT LARGELY REFLECTS PRODUCTION OF ITS NEW JEEP GRAND CHEROKEE AS WELL AS INCREASED PRODUCTION OF THE OLDER AND CHEAPER CHEROKEE MODEL ABOUT THIS TIME LAST YEAR CHRYSLER WAS JUST STARTING TO ACCELERATE PRODUCTION OF ITS NEW GRAND CHEROKEE AND GM'S 349 INCREASE IN FIRSTQUARTER TRUCK PRODUCTION IS BOUNCING OFF OF A PARTICULARLY WEAK YEARAGO PERIOD AUTO ANALYSTS SAID 9301190133 930119 INTERNATIONAL MEXICO'S GARMENT INDUSTRY IS PIVOTAL TO PLANS TO BOOST ECONOMY VIA EXPORTS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY FOR ALEJANDRO FAES THE FRONT LINES OF MEXICO'S ECONOMIC RESUSCITATION RUN THROUGH HIS FACTORY MR FAES MUST PROVE HE CAN MAKE A DRESS SHIRT THAT MEETS THE STANDARDS OF THE AMERICAN CONSUMER QUALITY HASN'T BEEN THE WORKER'S FAULT HE SAYS IT WAS THE OWNER'S WE HAD CLOSED BORDERS AND COULD SELL WHATEVER WE WANTED NO LONGER AS THIS ONCEPROTECTIONIST COUNTRY SEEKS ITS PLACE IN THE GLOBAL ECONOMY THE 33YEAROLD MR FAES AND HIS FACTORY WORKERS SERVE AS COGS IN PLANS TO PUMP UP MEXICO'S GROSS NATIONAL PRODUCT WITH EXPORTS THE GARMENT INDUSTRY IS PIVOTAL IT HAS JUMPSTARTED THE ECONOMIES OF HONG KONG TAIWAN AND ALMOST EVERY OTHER DEVELOPING COUNTRY SOME 200 FOREIGN COMPANIES INCLUDING INDUSTRY GIANTS WARNACO GROUP INC LEVI STRAUSS & CO AND LIZ CLAIBORNE INC NOW HAVE MANUFACTURING OR SOURCING OPERATIONS HERE IF THE NORTH AMERICAN FREETRADE PACT PASSES THE US CONGRESS THIS YEAR OTHER COMPANIES WILL ENTER MEXICO AS COMPLEX RULES ON YARN TEXTILES AND GARMENTS UNRAVEL INTO A FREER TRADE SYSTEM OUR VISION IS THAT IN THE NEXT 10 YEARS YOU WILL FIND LITERALLY THOUSANDS OF APPAREL FACTORIES SPROUTING UP HERE SAYS ANTHONY BOSWORTH PLANNING VICE PRESIDENT FOR DU PONT CO THE US CHEMICAL GIANT'S TEXTILE DIVISION ALREADY HAS A FIBER JOINT VENTURE WITH THE MEXICAN INDUSTRIAL GIANT GRUPO ALFA SA MEXICO'S GARMENT TRADE LIKE EVERY OTHER INDUSTRY HERE WAS PROTECTED FROM IMPORTS FOR DECADES BY TARIFFS AND IMPORT LICENSES PRICEY POORLY MADE CLOTHING FOR TRAPPED CONSUMERS CAME TO CHARACTERIZE THE MARKET BUT CONSUMERS GOT THEIR REVENGE WITH THE FREEMARKET REFORMS OF PRESIDENT CARLOS SALINAS DE GORTARI FOUR YEARS AGO MEXICAN CRAVINGS FOR IMPORTS QUINTUPLED THE TRADE DEFICIT IN TEXTILES AND APPAREL IN ONLY A YEAR NOW THE BATTERED INDUSTRY IS GETTING INTO FIGHTING SHAPE TO COMPETE AT HOME AND ABROAD MEXICAN CLOTH IS A PROBLEM THOUGH SAY ANALYSTS DURING A RECENT FACTORY TOUR CONVENTIONEERS FROM THE INTERNATIONAL APPAREL ASSOCIATION EXAMINED FABRIC LIKE JEWELERS SCRUTINIZING DIAMONDS THE TAIWAN DELEGATES PULLED AT THE LOOSE WEAVE OF A FABRIC TREATING IT WITH DISDAIN YET LILIANE CHUANG OF THE TAIWAN DELEGATION SAID SHE SEES GREAT POTENTIAL IN MEXICO FOR TAIWAN WHICH ALREADY HAS TWO PLANTS IN THE COUNTRY TAIWAN LABOR COSTS DOUBLE THE MEXICAN RATE US LABOR IS 10 TIMES MEXICO'S AND TAIWAN FACES A 30 LABOR SHORTAGE SHE NOTES THE ONLY WAY TO KEEP OUR MARKET SHARE IN THE STATES IS TO BE HERE SAYS MS CHUANG THE TAIWAN TEXTILE FEDERATION'S PROMOTION DIRECTOR LAWRENCE FANG OF HONG KONG AGREES A YEAR AGO HE SANK 3 MILLION INTO A FACTORY EMPLOYING 360 WORKERS IN MEXICO'S YUCATAN PENINSULA SKIRTS SHORTS AND PANTS FOR LIZ CLAIBORNE ARE STITCHED THERE UNDER THE PROPOSED FREETRADE PACT COMPANIES CAN EXPORT WITHIN NORTH AMERICA UNDER A SYSTEM OF DECLINING DUTIES AS LONG AS THE PRODUCT AND ITS YARN ARE MADE IN ONE OF THE THREE COUNTRIES SILK LINEN AND SOME COTTON FABRICS ARE EXCEPTIONS THUS THE PROPOSED PACT IS EXPECTED TO GIVE A BOOST TO THE US TEXTILE INDUSTRY WHICH WILL SHIP FABRIC TO THE MEXICAN APPAREL INDUSTRY AND ULTIMATELY ACCELERATE AN EMERGING SHIFT OF APPARELMAKING FROM THE FAR EAST TO THIS HEMISPHERE MR FAES IS READYING HIS BUSINESS CORP ASTURIANA DE CAMISAS SA FOR MORE ORDERS WITH A 4 MILLION PLANT MODERNIZATION INSIDE HIS FACTORY AN EMPLOYEE GETS MAXIMUM USE OF FABRIC BY FITTING PATTERN PIECES TOGETHER LIKE PUZZLE PARTS THE WORK IS DONE BY A COMPUTER MR FAES NOW OPERATES TWO ASSEMBLY FACTORIES THAT SEND PRODUCTS DUTYFREE TO THE US LAST MONTH HE OPENED A CHAIN OF MEN'S CLOTHING BOUTIQUES WHILE MR FAES HAS A WEALTHY FAMILY THAT FINANCED HIS PLANT'S MODERNIZATION OTHER MEXICAN BUSINESSES STRUGGLE WITH LOAN RATES OF 30 FULLY 96 OF THE COUNTRY'S 9000 TEXTILE AND GARMENT MAKERS RUN SMALL SHOPS AND HAVE TROUBLE GETTING LOANS FOR EXAMPLE RAUL AND CARLOS SERRANO BOTH IN THEIR MID20S OPERATE A SMALL COMPANY CALLED AJUA A SPANISHLANGUAGE EXCLAMATION SIMILAR TO YAHOO THEIR CLOTHING DESIGNS FOR TODDLERS ARE READY TO GO INTO PRODUCTION BUT THE BROTHERS ARE SHORT OF CAPITAL BANKS ARE A MAFIA SAYS RAUL SERRANO CARLOS ADDS WE JUST LACK MONEY BUT NOT IDEAS 9301190132 930119 CURRAGH GAINS CREDIT WITH LENDING BANK IN RETURN FOR OPTIONS TORONTO CURRAGH INC SAID IT ARRANGED FOR AN ADDITIONAL 10 MILLION CANADIAN DOLLAR US78 MILLION LINE OF CREDIT WITH BANK OF NOVA SCOTIA IN EXCHANGE FOR STOCKPURCHASE OPTIONS THAT COULD GIVE THE BANK AS MUCH AS A 16 STAKE IN CURRAGH THE MINING CONCERN SAID THAT UNDER THE ARRANGEMENT BANK OF NOVA SCOTIA RECEIVED A 10YEAR OPTION TO BUY UP TO 16 MILLION CURRAGH SUBORDINATE VOTING SHARES AT TWO CANADIAN DOLLARS US156 A SHARE IF THE CREDIT FACILITY ISN'T REPAID BY MARCH 1 THE OPTION WOULD INCREASE TO 32 MILLION SHARES CURRAGH HAS ABOUT 164 MILLION SHARES OUTSTANDING UNDER THE ARRANGEMENT THE BANK ALSO IS ENTITLED TO RECEIVE THE GREATER OF C15 MILLION OR 5 OF THE NET PROCEEDS FROM THE SALE OF ALL OR A PORTION OF THE COMPANY'S STRONSAY LEAD/ZINC PROPERTY IN BRITISH COLUMBIA SHOULD CURRAGH SELL ALL OR PART OF THE PROPERTY IN A NEWS RELEASE CURRAGH SAID THE NEW CREDIT FACILITY WILL PROVIDE MUCHNEEDED WORKING CAPITAL AT A TIME OF DEPRESSED COMMODITIES PRICES IT SAID IT IS PURSUING OTHER MEANS OF RAISING CAPITAL INCLUDING A POSSIBLE EQUITY ISSUE BUT IT DIDN'T ELABORATE CURRAGH OFFICIALS COULDN'T BE REACHED FOR COMMENT 9301190131 930119 TECHNOLOGY & MEDICINE BORLAND POSTS LOSS FOR THIRD QUARTER CITING PRICE CUTS BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL BORLAND INTERNATIONAL INC STUNG BY A PRICE WAR POSTED WORSETHANEXPECTED RESULTS FOR ITS FISCAL THIRD QUARTER BORLAND A SOFTWARE SUPPLIER REPORTED A LOSS OF 613 MILLION OR 234 A SHARE COMPARED WITH A PROFIT OF 75 MILLION OR 28 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FOR THE QUARTER ENDED DEC 31 DECLINED BY 9 TO 1043 MILLION COMPARED WITH 1146 MILLION IN THE YEARAGO PERIOD ONE OF THE FASTESTGROWING SOFTWARE COMPANIES ONLY A YEAR AGO BORLAND TODAY IS HAMSTRUNG BY INCREASING COMPETITION AND UNDER PRESSURE TO MAKE GOOD ON PROMISED NEW PRODUCTS ANALYSTS HAD EXPECTED BORLAND TO POST REVENUE OF ROUGHLY 115 MILLION FOR THE QUARTER BUT THE SCOTTS VALLEY CALIF COMPANY LAST WEEK DECIDED TO CUT THE PRICE ON ITS QUATTRO PRO SPREADSHEETS AS A RESULT BORLAND REDUCED ITS REVENUE FOR THE QUARTER BY 107 MILLION IN ORDER TO PROTECT RETAILERS WHO HAD INVENTORY OF THE PRODUCT THE COMPANY ALSO TOOK A CHARGE OF 98 MILLION RELATED TO INVENTORY WRITEDOWNS FREIGHT AND REWORK BORLAND WHICH RELEASED ITS RESULTS AFTER THE CLOSE OF TRADING ALREADY IS SUFFERING FROM DELAYS IN THE DELIVERY OF TWO DATABASE PROGRAMS WINDOWS VERSIONS OF ITS PARADOX AND DBASE PRODUCT LINES WHICH DOMINATE THE CATEGORY THE COMPANY ALSO IS FEELING THE STING OF A RESTRUCTURING IN DECEMBER THE COMPANY SAID IT WOULD TAKE A PRETAX CHARGE OF 25 MILLION RELATED TO EMPLOYEE LAYOFFS AND THE WRITEOFF OF SOFTWARE TECHNOLOGY IT IS VERY HARD TO COME UP WITH A ROSY OUTLOOK FOR BORLAND SAID BETTY LYTER AN ANALYST AT MONTGOMERY SECURITIES BORLAND FACES A PRETTY PRECARIOUS CASH POSITION MS LYTER SAID THE COMPANY WHICH HELD 616 MILLION IN CASH AND EQUIVALENTS AT YEAR END MUST MAKE A PAYMENT OF 30 MILLION BY SEPTEMBER TO COVER NEW FACILITIES IT ALSO MAY BE FORCED TO PAY DAMAGES OF POSSIBLY MANY MILLIONS OF DOLLARS STEMMING FROM A LAWSUIT BROUGHT AGAINST IT BY LOTUS DEVELOPMENT CORP 9301190130 930119 CREDIT RATING MOODY'S CUTS RATINGS ON DEBT OF FUJITSU AND DAIWA BANK LTD NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THE DEBT RATINGS OF FUJITSU LTD AND DAIWA BANK LTD MOODY'S DOWNGRADED THE RATING ON FUJITSU'S LONGTERM DEBT TO SINGLEA2 FROM DOUBLEA3 CITING A DECLINE IN THE JAPANESE COMPUTER CONCERN'S CORE MAINFRAME AND SEMICONDUCTOR BUSINESSES ABOUT 17 BILLION IN DEBT AND 800 MILLION IN SHELF REGISTRATIONS WERE AFFECTED THE COMPANY'S DEBT HAD BEEN UNDER REVIEW SINCE OCT THE RATING AGENCY SAID SOFTENING DEMAND ESPECIALLY FROM JAPAN'S FINANCIAL INSTITUTIONS WOULD FURTHER LOWER MARGINS ON FUJITSU'S MAINFRAME COMPUTERS AND IT SAID THE INCREASING CAPITAL DEMANDS IN THE RECOVERING SEMICONDUCTOR MARKET MAY UNDERCUT THE COMPANY'S EFFORTS MOODY'S LOWERED THE SENIOR LONGTERM RATING OF DAIWA BANK WHICH IS UNRELATED TO DAIWA SECURITIES TO SINGLEA1 FROM SINGLEA3 ABOUT 14 BILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY ALSO LOWERED THE DEBT RATINGS OF SEVERAL DAIWA UNITS MOODY'S SAID UNCERTAIN ASSET QUALITY AND A WEAKER OUTLOOK FOR CORE EARNINGS LED TO THE DOWNGRADE MOODY'S NOTED THE JAPANESE BANK'S GENERALLY CONSERVATIVE MANAGEMENT BUT SAID PROBLEM REAL ESTATE AND THE ECONOMIC SLOWDOWN IN JAPAN HAS LEFT THE COMPANY VULNERABLE TO FURTHER ASSET DETERIORATION IT SAID DAIWA MAY NEED TO RESTRUCTURE BORROWINGS FROM SEVERAL NONBANK CUSTOMERS WHICH COULD REPRESENT A SIGNIFICANT DRAIN ON THE BANK'S RESOURCES DAIWA'S DEBT HAD BEEN UNDER REVIEW SINCE SEPT 8 9301190129 930119 MELLON BANK CORP STOCK OFFER PITTSBURGH MELLON BANK CORP SAID IT IS OFFERING 3750000 NEWLY ISSUED COMMON SHARES AT 5450 EACH THROUGH A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS & CO MELLON ALSO SAID IT IS GRANTING UNDERWRITERS AN OPTION TO BUY AS MANY AS 562500 NEWLY ISSUED SHARES TO COVER OVERALLOTMENTS PROCEEDS WILL GO TOWARD THE PURCHASE PRICE AND CAPITAL REQUIREMENTS ASSOCIATED WITH TWO ACQUISITIONS THE PENDING 145 BILLION PURCHASE OF BOSTON CO FROM AMERICAN EXPRESS CO AND LAST MONTH'S 181 MILLION ACQUISITION OF MERITOR SAVINGS BANK BRANCHES MELLON BANK ALSO SAID IT INTENDS TO DEREGISTER REMAINING SHARES AVAILABLE UNDER ITS DEC 30 1992 SHELF REGISTRATION 9301190128 930119 RAWSTEEL PRODUCTION ROSE 02 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 02 LAST WEEK TO 1766000 TONS FROM 1763000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 07 FROM THE 1754000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 802 OF ITS CAPABILITY LAST WEEK UP FROM 80 THE PREVIOUS WEEK AND 797 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9301190127 930119 DIVIDEND NEWS STURM RUGER & CO STURM RUGER & CO SOUTHPORT CONN SAID ITS BOARD APPROVED A 2FOR1 STOCK SPLIT TO BE EFFECTIVE TOWARD THE MIDDLE OF THE YEAR THE MAKER OF RIFLES AND HANDGUNS SAID THE SPLIT IS SUBJECT TO SHAREHOLDERS APPROVING A DOUBLING OF THE NUMBER OF AUTHORIZED SHARES TO 20 MILLION STURM RUGER SAID IT WILL SEEK SHAREHOLDER APPROVAL FOR THE INCREASE AT THE APRIL 27 ANNUAL MEETING THE RECORD DATE FOR THE SPLIT WILL BE MAY 7 STURM RUGER HAS ABOUT 67 MILLION SHARES OUTSTANDING NOW 9301190126 930119 WHO'S NEWS TW SERVICES INC TW SERVICES INC SPARTANBURG SC EDNA K MORRIS WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES FOR THIS RESTAURANT CONTRACT FOOD AND VENDING SERVICES COMPANY MS MORRIS 41 YEARS OLD WAS VICE PRESIDENT OF EDUCATION AND TRAINING SHE SUCCEEDS DONALD H TURNER 56 WHO WILL RETIRE MARCH 31 9301190125 930119 DILLER IS NAMED CHAIRMAN CHIEF EXECUTIVE OF QVC WEST CHESTER PA QVC NETWORK INC AS EXPECTED NAMED BARRY DILLER ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR DILLER 50 YEARS OLD SUCCEEDS JOSEPH M SEGEL WHO HAS BEEN NAMED TO THE POST OF CHAIRMAN EMERITUS MR DILLER PREVIOUSLY WAS CHAIRMAN AND CHIEF EXECUTIVE OF FOX INC AND TWENTIETH CENTURY FOX FILM CORP BOTH UNITS OF NEWS CORP HE ALSO SERVED FOR 10 YEARS AS CHAIRMAN AND CHIEF EXECUTIVE OF PARAMOUNT PICTURES CORP A UNIT OF PARAMOUNT COMMUNICATIONS INC ARROW INVESTMENTS INC A CORPORATION CONTROLLED BY MR DILLER IN DECEMBER AGREED TO PURCHASE 25 MILLION OF QVC STOCK IN A PRIVATELY NEGOTIATED TRANSACTION AT THAT TIME IT WAS ANNOUNCED THAT DILLER WAS IN TALKS WITH THE COMPANY ON BECOMING ITS CHAIRMAN AND CHIEF EXECUTIVE UPON MR SEGEL'S SCHEDULED RETIREMENT THIS MONTH 9301190124 930119 MARKETING & MEDIA SUPERMARKETS REORGANIZE DISTRIBUTION TO HELP FIGHT K WAL AND OTHER MARTS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL A BEHINDTHESCENES BATTLE IS BREWING OVER FOOD SHOPPERS WITH THE KMARTS AND WALMARTS OF THE WORLD OFFERING LOW PRICES FOR A GROWING ARRAY OF GROCERY ITEMS SUPERMARKETS ACROSS THE COUNTRY ARE TRYING TO BEAT THEM AT THEIR OWN GAME BY ADOPTING MORE SOPHISTICATED DISTRIBUTION TECHNIQUES THE CHANGES IN THE 2804 BILLION GROCERY INDUSTRY ARE SOMETIMES HARD TO DECIPHER AMID POLYSYLLABIC JARGON LIKE REPLENISHMENT LOGISTICS AND FLOWTHROUGH DISTRIBUTION SYSTEMS BUT IN A BUSINESS WITH PAPERTHIN PROFIT MARGINS OF 1 OR SO THE NEW METHODS PROMISE FOOD RETAILERS FAR GREATER CONTROL OVER THEIR INVENTORY AND SUBSTANTIAL COST SAVINGS MANY OF THE IDEAS ARE FOUND IN A REPORT CALLED NEW WAYS TO TAKE COSTS OUT OF THE RETAIL FOOD PIPELINE PREPARED BY MERCER MANAGEMENT CONSULTING GROUP AND SCHEDULED TO BE PRESENTED TODAY AT A FOOD MARKETING INSTITUTE CONFERENCE THE REPORT WAS SPONSORED BY THE COCACOLA RETAILING RESEARCH COUNCIL AN INDUSTRY GROUP ASSEMBLED BY THE SOFTDRINK COMPANY WITH MORE MASS MERCHANDISERS SELLING FOOD GROCERS ARE HAVING THE UNCOMFORTABLE EXPERIENCE OF SEEING PRODUCTS PRICED IN THE COMPETITION'S STORE FOR LESS THAN THEY CAN BUY THEM SAYS WILLARD R BISHOP PRESIDENT OF A CHICAGO CONSULTING COMPANY INVOLVED IN THE REPORT WHEN THAT HAPPENS THE RED FLARE GOES UP UNLIKE THEIR MASSMERCHANDISING COUNTERPARTS GROCERY STORES HAVE MOSTLY ALLOWED THEIR BUYING PLANS TO BE DICTATED BY FOOD COMPANIES' PROMOTIONAL PROGRAMS THE NEW LOGISTICAL TECHNIQUES OUTLINED IN THE STUDY FLIP ALL OF THAT AROUND THEY CALL FOR CUSTOMER PURCHASES TO DRIVE MORE PURCHASING AND INVENTORY DECISIONS ADOPTING THE JUSTINTIME PRINCIPLES OF HEAVY INDUSTRY GROCERS WOULD ORDER THE FOOD ITEMS THEY NEED BY MEASURING MORE PRECISELY WHAT SHOPPERS ARE CARRYING OUT OF THE STORE EACH DAY THE NEW SYSTEMS WOULD BE TIED INTO BARCODE SCANNERS ALLOWING STORES TO DEVELOP AUTOMATIC INVENTORY PROGRAMS THE PURPOSE ISN'T TO ELIMINATE A STORE BUYER'S JUDGMENT IN ORDERING INVENTORY BUT TO USE THE COMPUTER TO HANDLE MORE PREDICTABLE GROCERIES SUCH AS SOUPS CEREALS AND SPICES THEN BUYERS COULD CONCENTRATE MORE ON DECIDING WHICH NEW PRODUCTS TO CARRY AND PRICING GOODS COMPETITIVELY THE REPORT OFFERS A SERIES OF TECHNIQUES FROM SIMPLE TRANSPORTATION AND WAREHOUSING CHANGES TO SOPHISTICATED BUYING PLANS PARTNERSHIPS WITH SUPPLIERS AND COMPUTER NETWORKS THAT ALLOW STORES TO ALERT SUPPLIERS OF THEIR NEEDS BASED ON BARCODE SALES DATA SOME OF THE PROGRAMS REQUIRE LARGE INVESTMENTS SOME SMALL BUT THE PAYBACK HAS PROVED TO BE THERE IN ALL THESE SITUATIONS SAYS ROBERT QUINN A PRINCIPAL OF MERCER MANAGEMENT THE 115STORE KASH N' KARRY FOOD STORES CHAIN IN TAMPA FLA IS TRYING SEVERAL OF THE OPTIONS IN THE PAST YEAR IT SPENT LESS THAN 100000 FOR AN ELECTRONICDATA INTERCHANGE SYSTEM WHICH IT USES TO AUTOMATE SOME TRANSACTIONS WITH SUPPLIERS LIKE COKE THAT DELIVER THEIR PRODUCTS DIRECTLY TO THE COMPANY'S STORES THE CHAIN SEVERAL YEARS AGO ADOPTED A SIMPLIFIED COSTSAVING DELIVERY METHOD CALLED CROSS DOCKING STARTING WITH SLOWERSELLING PRODUCTS SUCH AS RELISHES GOURMET MUSTARD AND OLIVE OIL THE DISTRIBUTOR NO LONGER DELIVERS SUCH GOODS TO THE STORES BUT RATHER DIRECTLY TO THE RETAILER'S RECEIVING DOCK ALREADY DIVVIED UP FOR EACH STORE THEN THEY ARE IMMEDIATELY DISPATCHED IN TRUCKS NEVER SPENDING A MINUTE IN STORAGE BECAUSE KASH N' KARRY HANDLES MORE OF THE DISTRIBUTION IT GETS A 5 BREAK ON PRODUCT PRICES WITH THIN MARGINS 5 IS VERY SUBSTANTIAL SAVINGS SAYS RON FLOTO CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE NEW SYSTEMS MAKE PRODUCTS AVAILABLE MORE QUICKLY TO SHOPPERS SUPERMARKETS NOW BUY SO MUCH IN ADVANCE THAT ON AVERAGE THEY KEEP GOODS STORED IN WAREHOUSES FOR ABOUT 19 DAYS BY REDUCING THE TIME IN STORAGE GOODS WILL BE FRESHER WHEN THEY REACH STORES IN GRAND RAPIDS MICH D&W FOOD CENTERS PLANS SEVERAL BIG CHANGES THIS YEAR IT WILL LEASE ITS OWN TRUCK FLEET AND PICK UP MILK FROM ITS DAIRY RATHER THAN HAVING IT DELIVERED THE DAIRY WILL GIVE THE COMPANY A DELIVERY REBATE WHICH ALONG WITH ANTICIPATED SAVINGS FROM BETTERCOORDINATED ROUTES IS EXPECTED TO MORE THAN PAY FOR THE NEW PROGRAM D&W ALSO PLANS TO PAY A LOGISTICS COMPANY TO MANAGE ITS 70000SQUAREFOOT WAREHOUSE 9301190123 930119 GIII APPAREL SETTLES LAWSUITS NEW YORK GIII APPAREL GROUP LTD SAID IT WILL PAY 400000 TO SETTLE FOUR CLASSACTION LAWSUITS BROUGHT AGAINST IT AND CERTAIN OF ITS OFFICERS AND DIRECTORS IN SEPTEMBER 1990 GIII SAID THE SUITS ALLEGED VIOLATIONS OF CERTAIN SECURITIES LAWS IN CONNECTION WITH STATEMENTS ATTRIBUTED TO THE COMPANY IN AUGUST 1990 GIII SAID TWOTHIRDS OF THE SETTLEMENT PAYMENT TO PLAINTIFFS WOULD BE COVERED BY THE COMPANY'S INSURANCE CARRIER THE MAKER AND SELLER OF LEATHER OUTERWEAR SAID IT CONTINUES TO DENY ALL ALLEGATIONS OF WRONGDOING REGARDING THE LAWSUITS 9301190122 930119 PEPPERAND SALT ALL MY CHECKS HAVE NOT BEEN WRITTEN YET I'M BORN TO SHOP AND THEY WERE BORN TO LEND THE DARNED AIRLINE UNRAVELS 9301190121 930119 INTERNATIONAL JAPAN'S STEEL OUTPUT RISES 09 TOKYO JAPAN'S PRODUCTION OF STEEL IN DECEMBER ROSE 09 FROM A YEAR EARLIER TO 839 MILLION METRIC TONS BREAKING THE 16MONTH STREAK OF YEARONYEAR DECLINES THE JAPAN IRON AND STEEL FEDERATION SAID THE LATEST FIGURE FOLLOWS YEARONYEAR FALLS OF 14 IN NOVEMBER 81 IN OCTOBER AND 93 IN SEPTEMBER IN DECEMBER STEEL OUTPUT INCHED UP 05 FROM NOVEMBER WITH THE LATEST DATA STEEL OUTPUT FOR 1992 CAME TO 9812 MILLION METRIC TONS FALLING SHORT OF 100 MILLION METRIC TONS FOR THE FIRST TIME SINCE 1987 WHEN OUTPUT TOTALED 9851 MILLION METRIC TONS THE FULLYEAR TOTAL OUTPUT WAS OFF 11 FROM 10965 MILLION METRIC TONS IN 1991 FOR THE SECOND YEAR IN A ROW OF YEARONYEAR DECLINE A METRIC TON IS EQUAL TO 220462 POUNDS DESPITE THE PICKUP IN PRODUCTION OF STEEL IN JAPAN A FEDERATION OFFICIAL SAID OUTPUT IS CRAWLING AT THE BOTTOM OF THE CURRENT DOWNTURN WITH LACK OF ANY BRIGHT SIGN 9301190120 930119 WHO'S NEWS ANHEUSERBUSCH COS ANHEUSERBUSCH COS ST LOUIS THREE EXECUTIVES AT THIS DIVERSIFIED BEER FOOD REAL ESTATE AND MANUFACTURING CONCERN WERE NAMED TO NEW VICE PRESIDENT POSITIONS MARK BORANYAK FORMERLY MANAGING DIRECTOR FOR STATE LEGISLATIVE AFFAIRS WAS NAMED VICE PRESIDENT OF STATE AFFAIRS JOBETH G BROWN CORPORATE SECRETARY WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT AS WAS JUDITH A ROBERTS WHO IS THE EXECUTIVE ASSISTANT TO THE CHAIRMAN AND PRESIDENT 9301190119 930119 WHO'S NEWS ROCHESTER TELEPHONE CORP ROCHESTER TELEPHONE CORP ROCHESTER NY BRENDA EVANS EDGERTON 43 YEARS OLD VICE PRESIDENT AND TREASURER OF CAMPBELL SOUP CO CAMDEN NJ WAS NAMED A DIRECTOR OF THIS TELEPHONE CORPORATION THE ACTION INCREASES THE SIZE OF THE BOARD TO 14 MEMBERS FROM 13 MEMBERS ROCHESTER TELEPHONE ALSO OPERATES TELECOMMUNICATIONS SERVICES ENGAGED IN NETWORK SERVICES AND SYSTEMS AS WELL AS WIRELESS COMMUNICATIONS SYSTEMS 9301190118 930119 CRAY RESEARCH GETS NASA ORDER EAGAN MINN CRAY RESEARCH INC SAID IT RECEIVED AN ORDER FOR A 305 MILLION SUPERCOMPUTER FROM THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S AMES RESEARCH CENTER THE TOPOFTHELINE CRAY YMP C90 SUPERCOMPUTER IS THE SECOND ORDERED BY NASA THE COMPANY SAID AND WILL BE DELIVERED IN THE FIRST QUARTER IT WILL REPLACE THE CRAY 2 SYSTEM NASA ACQUIRED IN 1988 THE SUPERCOMPUTER MAKER SAID 9301190117 930119 LEISURE & ARTS ON SPORTS BOYS WIN SOUP BOWL HEAD FOR SUPER BOWL BY FREDERICK C KLEIN SAN FRANCISCO IT WAS ANOTHER OF THOSE WATCHWHATYOUWISHFOR WEEKENDS IN THE GOLDEN WEST THE NATIVES LONG DROUGHTPLAGUED CONTINUED HAVING SO MUCH RAIN UP AND DOWN THE COAST THAT SAN DIEGO WAS NEARLY WASHED AWAY AND HERE IN THE NORTH WHERE IT'S GETTING TOUGH TO TELL THE CITY FROM THE BAY THE LONG AWAITED BIG ONE IN THE NATIONAL FOOTBALL LEAGUE THE NATIONAL CONFERENCE TITLE MATCH BILLED AS SUPER BOWL XXVI I/II TURNED INTO A SOUP BOWL IN WHICH THE VISITING DALLAS COWBOYS GOT THE BONE THE BOYS DID IT WITH A SECOND HALF IN WHICH THEY POSSESSED THE BALL FIVE TIMES AND SCORED THRICE ALL ON TOUCHDOWNS UNDER SODDEN SKIES THAT WERE NONETHELESS CONSIDERED A REPRIEVE BY THE BESOGGED LOCALS THEY MARCHED INTO THE END ZONE ON DRIVES OF 78 79 AND 79 YARDS NOT ONLY PUTTING POINTS ON THE BOARD BUT ALSO KEEPING THE FAVORED SAN FRANCISCO 49ERS FROM DOING SO THE FINAL SCORE WAS 3020 AND IT ABOUT REFLECTED THE TRUE DIFFERENCE BETWEEN THE TEAMS MOST HAVE HAILED AS THE LEAGUE'S BEST IN A TERM THAT NOW HAS BUT A SINGLE EXAM LEFT THAT WOULD BE THE ONE IN THE PASADENA ROSE BOWL ON JAN 31 BETWEEN DALLAS AND THE AMERICAN CONFERENCE WINNER BUFFALO BILLS IT WILL CARRY THE OFFICIAL SB SEAL AND CALIFORNIA WEATHER BEING WHAT IT IS SOME FLIPPERS WOULDN'T HURT IT WAS A MEASURE OF THE COWBOYS' EDGE ON SUNDAY THAT WHEN PRESSED TO MAKE WITH THE FOOTBALLESE LATER BILL ROMANOWSKI THE 49ER LINEBACKER DECLINED THE IMPORTANT THING WASN'T WHETHER WE WERE IN A ZONE OR MANTOMAN DEFENSE WHEN THEY WERE MOVING THE BALL HE SAID EITHER WAY IF YOU'VE GOT A GUY TO COVER YOU'VE GOT TO COVER HIM AND I GUESS WE DIDN'T THE BIG PLAY IN A CONTEST THAT HAD MORE THAN ITS SHARE WAS A 70YARD PASS FROM TROY AIKMAN THE YOUNG DALLAS QUARTERBACK TO WIDE RECEIVER ALVIN HARPER IT CAME LATE IN THE FOURTH QUARTER AFTER THE NINERS HAD LAUNCHED THEIR BEST THRUST A NINEPLAY 93YARD TOUCHDOWN DRIVE THAT REDUCED THE DALLAS LEAD TO 2420 WITH 4 1/2 MINUTES LEFT AND ROUSED VISIONS OF COMEBACK GLORY IN THEIR WETFOOTED FAITHFUL BUT ON THE FIRST PLAY FROM SCRIMMAGE ON HIS OWN 21YARD LINE AIKMAN WHO IN THE WORDS OF HIS COACH JIMMY JOHNSON HAD BEEN SQUEEZING IN PASSES BETWEEN SAN FRANCISCO DEFENDERS ALL AFTERNOON FOUND HARPER RUNNING DIAGONALLY ACROSS THE FIELD FROM A WIDELEFT STARTING POSITION HARPER CAUGHT THE BALL ON HIS OWN 35YARD LINE JUST AHEAD OF CORNERBACK DON GRIFFIN AND FLED TO THE NINER NINE THREE PLAYS LATER AIKMAN HIT KELVIN MARTIN WITH THE SIXYARD SCORING PASS THAT PUT THE GAME OUT OF REACH ASKED WHY HE ORDERED HIS TROOPS TO PASS INSTEAD OF RUN OUT THE CLOCK JOHNSON ALLUDED TO HISTORY THAT'S BEEN OUR STYLE ALL SEASON HE DECLARED ANYONE WHO KNOWS US KNOWS THAT WE'RE GONNA PLAY AGGRESSIVE FOOTBALL ANYONE WHO KNOWS THE COWBOYS ALSO KNOWS THAT THEY'VE MADE ABOUT AS NEAT A RETURN TO THE NFL'S ELITE AS HAS BEEN ACCOMPLISHED IN THE FOUR CAMPAIGNS SINCE THE HEAVYSET JOHNSON WAS WOOED AWAY FROM THE UNIVERSITY OF MIAMI TO REPLACE SIDELINE ICON TOM LANDRY THE WONLOST RECORD OF THE ONCE AND MAYBE FUTURE AMERICA'S TEAM HAS CLIMBED FROM 115 TO 79 TO 126 TO THIS SEASON'S 153 AND COUNTING THEY'VE DONE IT THROUGH THE DRAFT WITH SUCH SELECTIONS AS AIKMAN SLEEK WIDE RECEIVERS HARPER AND MICHAEL IRVIN AND EMMITT SMITH THEIR DAYLIGHTSEEKING MISSILE OF A RUNNER BY SIGNING FREE AGENTS LIKE JAY NOVACEK A PHOENIX CARDINALSREJECT TIGHT END AND WITH TRADES LIKE THE ONE THAT BROUGHT IN CHARLES HALEY A PASSRUSH MASTER WHO'D BEEN A DISCONTENTED 49ER THE RAP AGAINST THE BOYS COMING INTO SUNDAY WAS THAT THEY LACKED BIG GAME EXPERIENCE ESPECIALLY IN COMPARISON WITH NINERS WHO'D VISITED ONE OR MORE OF THE FOUR BOWLS SUPER THEIR TEAM HAD WON BETWEEN 1982 AND 1990 DALLAS'S LAST SB APPEARANCE WAS IN 1978 NOT SO ACCORDING TO THE VOLUBLE IRVIN WE'VE GOT GUYS LIKE ME WHO'D PLAYED BIG GAMES IN COLLEGE SAID THE PRODUCT OF A UNIVERSITY OF MIAMI COLLEGIATETITLEWINNING TEAM WE'VE GOT OTHER GUYS WHO PLAYED ON CHAMPIONSHIP TEAMS IN HIGH SCHOOL COME TO THINK OF IT I GOT MORE NERVOUS BACK THEN THAN NOW IF DALLAS NERVES HAD BEEN A FACTOR THEY'D HAVE SHOWED UP IN A 1010 FIRST HALF IN WHICH THE NINERS OUTPLAYED THEIR GUESTS AND WOULD HAVE OUTSCORED THEM IF NOT FOR FUMBLES THAT LED TO BOTH COWBOYS TALLIES LEFTHANDED STEVE YOUNG THE VERSATILE NINER QB PASSED WELL AND RAN THAT WAY TOO WHEN THE SITUATION AROSE A 63YARD YOUNGTOJERRY RICE TD PASS IN THE FIRST QUARTER WAS NULLIFIED BY A LINEMAN'S HOLDING PENALTY BUT THE COWBOYS SCORED ON THEIR FIRST SECONDHALF POSSESSION AND DID IT AGAIN THE NEXT TIME THEY HAD THE BALL THE SECOND THRUST WENT 79 YARDS IN 14 PLAYS AND RAN NINE MINUTES OFF THE CLOCK THAT ONE INCLUDED FOUR THIRDDOWN CONVERSIONS AND SURPRISED EVEN THEIR COACH USUALLY WHEN YOU RUN THAT MANY PLAYS YOU MAKE A MISTAKE JOHNSON NOTED THAT THEY DIDN'T WAS MOSTLY A TRIBUTE TO THE 26YEAROLD AIKMAN HE COMPLETED 24 OF 34 PASSES FOR 322 YARDS AND THREW NO INTERCEPTIONS YOUNG THE NINERS' STARTING QB FOR MOST OF THE PAST TWO SEASONS BECAUSE OF INJURIES TO THE ADMIRABLE JOE MONTANA THREW FOR 313 YARDS BUT HAD TWO PASSES INTERCEPTED BOTH OF THOSE CAME IN THE LAST QUARTER BLUNTINGCATCHUP EFFORTS MONTANA RECOVERED FROM ELBOW WOES SUFFICIENTLY TO PLAY IN HIS TEAM'S LAST REGULARSEASON GAME HE'S WATCHED FROM THE SIDELINES SINCE BUT HIS MEMORY REMAINS POTENT NOT HAVING THE NINERS IN THE SUPER BOWL MEANS MOST OF THE NATION WON'T HAVE TO READ QUARTERBACK CONTROVERSY STORIES FOR THE NEXT TWO WEEKS SAN FRANCISCANS NOT SO LUCKY CAN LOOK FORWARD TO MANY BETWEEN NOW AND NEXT SEASON BUFFALO THE DALLAS FOE TWO WEEKS HENCE ADVANCED SUNDAY BY WINNING AT MIAMI 2910 SINCE COMING FROM A 335 DEFICIT TO BEAT HOUSTON TWO WEEKS AGO THE BILLS HAVE LOOKED LIKE DESTINY'S DARLINGS BUT WITH THE COWBOYS AHEAD THEY MAY NEED MORE TANGIBLE HELP 9301190116 930119 WHO'S NEWS WAREHOUSE CLUB INC WAREHOUSE CLUB INC CHICAGO THE COMPANY NAMED 59YEAROLD EVERETT L BUCKARDT AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT AS CHAIRMAN AND PRESIDENT HE SUCCEEDS JAMES WALSH WHO RESIGNED IN JUNE 1992 THE POST OF CHIEF EXECUTIVE OFFICER HAS BEEN VACANT FOR ABOUT TWO YEARS THE OPERATOR OF MEMBERONLY WAREHOUSE STORES SAID MR BUCKARDT RETIRED IN MARCH 1992 AS PRESIDENT OF SEARS ROEBUCK & CO'S CATALOG AND DIRECT MARKETING DIVISION 9301190115 930119 WHO'S NEWS COGNOS INC COGNOS INC BURLINGTON MASS RON ZAMBONINI SENIOR VICE PRESIDENT OF BUSINESS MANAGEMENT AND DEVELOPMENT WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER IN HIS NEW POSTS MR ZAMBONINI 47 SUCCEEDS JEFF PAPOWS WHO IS RESIGNING THE SOFTWARE MAKER SAID MR PAPOWS'S DEPARTURE WAS BY MUTUAL AGREEMENT MR PAPOWS 39 SAID HIS TALENT IS IN MANAGEMENT ADDING THAT WHAT THE COMPANY HAS TO STRUGGLE WITH NOW ARE TECHNOLOGY ISSUES 9301190114 930119 INTERNATIONAL PILIPINAS SHELL TO GET LOAN FROM FOREIGN BANK GROUP MANILA PHILIPPINES PILIPINAS SHELL PETROLEUM CORP SAID A SYNDICATE OF MOSTLY FOREIGN FINANCIAL INSTITUTIONS AGREED TO PROVIDE A 318 MILLION LOAN FOR AN OIL REFINERY THE AGREEMENT MARKS THE BIGGEST FUNDRAISING EXERCISE INVOLVING THE PRIVATE SECTOR SINCE THE PHILIPPINES DECLARED A MORATORIUM ON FOREIGNDEBT PAYMENTS IN 1983 BANKERS AND INVESTMENT ANALYSTS WELCOMED THE ANNOUNCEMENT WHICH CAME AFTER A YEAR OF PAINSTAKING NEGOTIATIONS SAYING A LOAN OF SUCH A SCALE SIGNALS A PARTIAL RECOVERY OF BANKERS' CONFIDENCE IN THE NATION HAVING BEEN HURT BY THE FOREIGNDEBT RESTRUCTURING THAT FOLLOWED THE 1983 CRISIS FOREIGN BANKS HAVE GENERALLY SHUNNED THE PHILIPPINE MARKET THE SYNDICATE INCLUDES 24 COMMERCIAL BANKS PILIPINAS SHELL IS PLANNING TO USE THE LOAN TO HELP CONSTRUCT A 667 MILLION OIL REFINERY NEXT TO THE COMPANY'S EXISTING REFINERY IN BATANGAS PROVINCE ABOUT 68 MILES SOUTHWEST OF MANILA PILIPINAS SHELL IS 676OWNED BY ROYAL DUTCH/SHELL GROUP ANALYSTS SAID THAT WHILE THE ANNOUNCEMENT IS ENCOURAGING IT ISN'T LIKELY TO TRIGGER A MAJOR INFUSION OF MONEY BECAUSE POTENTIAL INVESTORS CONTINUE TO WORRY ABOUT THE COUNTRY'S CONTINUING ELECTRICITY OUTAGES 9301190113 930119 WHO'S NEWS IDEX CORP IDEX CORP NORTHBROOK ILL WALTER F WARE 50 YEARS OLD WAS NAMED PRESIDENT OF THE PULSAFEEDER INC UNIT OF THIS INDUSTRIAL PRODUCTS MAKER AS WELL AS TO THE NEW POST OF VICE PRESIDENTGROUP EXECUTIVE FOR IDEX'S WARREN RUPP AND LUBRIQUIP UNITS MR WARE FORMERLY A GROUP VICE PRESIDENT AT GOULDS PUMPS INC SUCCEEDS GERALD L CONNELLY WHO RECENTLY RESIGNED FROM PULSAFEEDER FRANK J HANSEN 51 PRESIDENT OF IDEX'S VIKING PUMP UNIT WAS NAMED TO THE NEW ADDITIONAL POST OF VICE PRESIDENTGROUP EXECUTIVE FOR THE COMPANY'S CORKEN AND BANDIT UNITS WADE H ROBERTS JR 46 PRESIDENT OF THE STRIPPIT UNIT WILL ASSUME THE ADDITIONAL POST OF VICE PRESIDENTGROUP EXECUTIVE RESPONSIBLE FOR IDEX'S VIBRATECH UNIT 9301190112 930119 PRIMERICA POSTS INCREASE OF 68 IN 4THPERIOD NET BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRIMERICA CORP BOLSTERED BY ASSET SALES AND STRONGER OPERATING RESULTS REPORTED A 68 INCREASE IN FOURTHQUARTER NET INCOME THE BIGGEST CONTRIBUTOR WAS A 545 MILLION GAIN ON THE SALE OF THE COMPANY'S REMAINING STOCK IN FINGERHUT A CATALOG RETAILER WHOSE STOCK PRIMERICA HAS BEEN SELLING PIECEMEAL SINCE 1990 THE SALE HELPED PUSH QUARTERLY NET TO 2213 MILLION OR 193 A SHARE FROM 1321 MILLION OR 118 A SHARE A YEAR EARLIER OPERATING PROFIT ROSE 33 TO 1533 MILLION FROM 1151 MILLION IN PART BECAUSE OF CONTINUED STRONG RESULTS AT THE COMPANY'S CONSUMER FINANCE UNIT COMMERCIAL CREDIT OPERATING RESULTS IN THE 1991 FOURTH QUARTER ALSO INCLUDED A 25 MILLION CHARGE FROM RESTRUCTURING AN INSURANCE OPERATION A 10 MILLION LOSS ON THE PENDING SALE OF VOYAGER INSURANCE COS A CREDIT INSURANCE COMPANY HURT THE LATEST QUARTER MIAMI'S AMERICAN BANKERS INSURANCE GROUP HAS AGREED TO BUY THAT COMPANY FOR ABOUT 110 MILLION BOTH THE FINGERHUT AND VOYAGER SALES RELATE TO A CONTINUING EFFORT BY PRIMERICA TO FOCUS ON ITS CORE BUSINESSESCONSUMER FINANCE STOCK BROKERAGE AND TERM LIFE INSURANCE INCOME AT COMMERCIAL CREDIT AND PRIMERICA'S OTHER CONSUMER FINANCE BUSINESSES ROSE 13 TO 513 MILLION REFLECTING LOWER COSTS AND LOAN LOSSES RECEIVABLES FELL SLIGHTLY AND DELINQUENCIES FELL TO 255 AT YEAR'S END FROM 28 A YEAR EARLIER PROFITS AT PRIMERICA FINANCIAL SERVICES THE COMPANY'S TERM LIFE INSURANCE UNIT ROSE TO 468 MILLION FROM 393 MILLION NEW SALES WERE FLAT FOR THE SEVENTH STRAIGHT QUARTER EVERYONE IS WAITING TO SEE WHEN SALES WILL TURN AROUND SAID SANFORD C BERNSTEIN ANALYST GUY MOSKOWSKI THAT DIDN'T HAPPEN THIS QUARTER QUARTERLY EARNINGS AT SMITH BARNEY WHICH HAD A RECORD YEAR FELL TO 382 MILLION FROM 498 MILLION BECAUSE OF LOWER TRADING PROFITS MR MOSKOWSKI SAID THE DECLINE REFLECTS REDUCED VOLATILITY IN BOND MARKETS WHICH LOWERED TRADING VOLUME RATHER THAN POOR RESULTS IN THE COMPANY'S OWN TRADING ACCOUNTS I WOULDN'T READ MUCH INTO IT HE SAID FOR THE FULL YEAR OPERATING EARNINGS ROSE 22 TO 593 MILLION OR 522 A SHARE ON REVENUE OF 51 BILLION A SLIGHT DECLINE FROM 1991 AT YEAR END PRIMERICA CLOSED ON A 7225 MILLION INVESTMENT IN TRAVELERS CORP HARTFORD CONN THE INVESTMENT GAVE PRIMERICA 27 OF TRAVELERS STOCK 9301190111 930119 CANADIAN STORE SALES GAIN OTTAWA CANADIAN DEPARTMENT STORE SALES TOTALED 208 BILLION CANADIAN DOLLARS US162 BILLION IN DECEMBER A 34 INCREASE FROM A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID 9301190110 930119 INTERNATIONAL VOLKSWAGEN'S SHORT SHIFTS WOLFSBURG GERMANY PREVIOUSLY ANNOUNCED SHORT SHIFTS AT GERMANY'S VOLKSWAGEN AG WILL AFFECT ABOUT 50000 OF THE COMPANY'S 120000 DOMESTIC WORKERS A VW SPOKESMAN SAID THE AUTO COMPANY PLANS 12 DAYS OF SHORTENED SHIFTS IN THE FIRST QUARTER OF 1993 THE SPOKESMAN SAID IN THE PLANT AT THE COMPANY'S WOLFSBURG HEADQUARTERS ABOUT 23000 WORKERS WILL BE PUT ON SHORT SHIFTS HE SAID ADDING THERE WILL ALSO BE SHORT SHIFTS AT ALL SIX DOMESTIC VW FACTORIES THE MEASURES ARE A RESULT OF SLUMPING AUTO ORDERS 9301190109 930119 VALENCE GM UNIT RENEW PACT SAN JOSE CALIF VALENCE TECHNOLOGY INC SAID IT RENEWED ITS CONTRACT WITH THE DELCO REMY DIVISION OF GENERAL MOTORS CORP FOR THE JOINT DEVELOPMENT OF LITHIUM POLYMER BATTERIES FOR AUTOMOBILES THE EFFORT IS PART OF A 20 MILLION AGREEMENT TO IMPROVE EXISTING VEHICLE APPLICATIONS AS WELL AS DEVELOP NEW HIGHLY EFFICIENT RECHARGEABLE BATTERIES FOR ELECTRIC CARS 9301190108 930119 INTERNATIONAL AT ROTHSCHILD BANK ALLEGATIONS FLY ABOUT ASSETS HIDDEN FROM A CONTESSA BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL THE LEGAL STRUGGLE BETWEEN ROTHSCHILD BANK AG OF ZURICH AND A FORMER TOP OFFICER HAS BECOME ENTWINED WITH A CELEBRATED INHERITANCE BATTLE SPAWNING ALLEGATIONS AND COUNTERCHARGES ABOUT HOW THE BANK HANDLED MONEY BELONGING TO ONE OF ITALY'S RICHEST FAMILIES JUERG HEER A FORMER ROTHSCHILD BANK DIRECTOR WHO HEADED THE LOAN DEPARTMENT RECENTLY ALLEGED IN COURT THAT THE BANK HELPED HIDE ASSETS BELONGING TO THE LATE COUNT CORRADO AGUSTA FROM THE HELICOPTER MAGNATE'S ESTRANGED WIFE CONTESSA FRANCESCA AGUSTA MR HEER AND ROTHSCHILD BANK ARE EMBROILED IN A SEPARATE DISPUTE IN WHICH THE BANK ALLEGES HE GOT KICKBACKS FOR MAKING ILLADVISED LOANS ROTHSCHILD BANK DIRECTOR AND ATTORNEY PETER HAFTER ESTABLISHED TRUSTS IN EARLY 1989 TO CONCEAL COUNT CORRADO'S ASSETS FROM HIS WIFE AND MR HAFTER MOVED MONEY INTO THOSE TRUSTS AFTER THE COUNT'S DEATH IN JUNE OF THAT YEAR BECAUSE HE WAS AFRAID THE COUNTESS COULD DISCOVER THESE ASSETS MR HEER ALLEGED ACCORDING TO A TRANSCRIPT OF HIS TESTIMONY TO A SWISS PROBATE COURT LAST MONTH MR HEER SAID UNDER OATH THAT THROUGH HIS WORK FOR ROTHSCHILD BANK HE HAD COME TO KNOW CORRADO AGUSTA IN THE EARLY 1980S AND THAT AFTER ABOUT 1987 HE REGULARLY HAD BUSINESS CONTACTS WITH HIM BESIDES HEADING ROTHSCHILD'S LOAN DEPARTMENT FOR NINE YEARS UNTIL JUNE 1992 MR HEER ALSO TOLD THE COURT HE HAD SPECIAL RESPONSIBILITIES FOR ITALIAN BUSINESS MR HEER ALLEGED THAT MR HAFTER TOOK ORDERS FROM COUNT CORRADO'S SON FROM AN EARLIER MARRIAGE RICCARDO AGUSTA WHO HAD BEEN NAMED BY THE LATE COUNT AS HIS PRINCIPAL HEIR IN ADDITION THE CONTESSA'S ADVISERS ALLEGE THAT RICCARDO AGUSTA WAS INVOLVED IN MAKING HASTY AND IRREGULAR TRANSFERS OF MILLIONS OF DOLLARS OF HIS FATHER'S MONEY FROM ITALIAN BANK ACCOUNTS ON THE DAY OF THE COUNT'S DEATH IN JUNE 1989 MR HAFTER DECLINED TO COMMENT ON MR HEER'S ALLEGATIONS SAYING THAT IT IS FOR THE COURTS TO DECIDE ON THESE MATTERS RICCARDO AGUSTA ALSO WOULDN'T COMMENT ON MR HEER'S ALLEGATIONS FOR ITS PART ROTHSCHILD BANK ALLEGES IN ITS SUIT AGAINST MR HEER THAT HE IMPROPERLY OBTAINED MILLIONS OF DOLLARS THROUGH HIS WORK AT THE BANK BY OFFERING LOANS IN EXCHANGE FOR KICKBACKS MR HEER UNDER CRIMINAL INVESTIGATION HIMSELF HAS ADMITTED RECEIVING THESE MONIES IN AN INTERVIEW WITH THIS NEWSPAPER BUT SAYS OTHERS IN THE BANK KNEW ABOUT THESE PAYMENTS AND APPROVED OF HIS ACTIONS THE BANK SAYS HE ACTED WITHOUT ITS KNOWLEDGE CONTESSA FRANCESCA SPEAKING THROUGH HER REPRESENTATIVES MAINTAINS THAT RICCARDO AGUSTA IN LEAGUE WITH ROTHSCHILD BANK AND OTHER FINANCIAL ADVISERS ARE TRYING TO DENY HER RIGHTFUL WIDOW'S INHERITANCE THEY ARE DOING THIS HER ADVISERS CONTEND BY HIDING HER LATE HUSBAND'S ASSETS WITH THE HELP OF LAWYERS IN LONDON NEW YORK WASHINGTON SWITZERLAND AND ITALY THE CONTESSA HAS BEEN TRYING TO ASCERTAIN THE EXTENT OF HER LATE HUSBAND'S FORTUNE THIS FORTUNE WHICH WAS BUILT ON THE AGUSTA HELICOPTER BUSINESS HAS BEEN ESTIMATED AT AS MUCH AS 1 BILLION AND ACCORDING TO MR HEER'S SWISS TESTIMONY INCLUDED PROPERTIES IN CALIFORNIA AND THE SWISS SKIING RESORT OF ST MORITZ A LUXURY YACHT AND AIRPLANE AS WELL AS 62 MILLION IN VARIOUS BANK ACCOUNTS THE CONTESSA'S ADVISERS ARE COUNTING ON MR HEER I BELIEVE THAT HEER'S TESTIMONY TENDS TO CONFIRM WHAT THE COUNTESS HAS ALWAYS BELIEVED SAYS THE CONTESSA'S US LAWYER JULIUS KAPLAN OF WHITMAN & RANSOM NAMELY THAT THERE HAS BEEN A CONSPIRACY AMONG RICCARDO AGUSTA HIS ADVISERS AND CERTAIN FINANCIAL INSTITUTIONS TO DEFRAUD THE COUNTESS OF HER FAIR SHARE OF THE ESTATE UNDER ITALIAN LAW THIS SHARE SHOULD BE EITHER ONETHIRD OF THE DECEASED COUNT'S ASSETS IF HIS WILL IS VALID OR HALF THE ASSETS IF THE WILL IS INVALID MR KAPLAN SAYS ALREADY THE COMPETING CLAIMS TO THE AGUSTA MONEY ARE BEING TESTED IN SWISS AND ITALIAN COURTS PEOPLE CLOSE TO ROTHSCHILD BANK SAY MR HEER AND THE CONTESSA MET RECENTLY AND THAT THEY ARE BOTH REPRESENTED IN THEIR SWISS LITIGATION BY THE ZURICH ATTORNEY VALENTIN LANDMANN THESE SOURCES SUGGEST THAT MR HEER AND THE CONTESSA MAY BE WORKING TOGETHER TO TRY TO OBTAIN RESPECTIVE SETTLEMENTS WITH ROTHSCHILD AND RICCARDO AGUSTA OTHERS CLOSE TO RICCARDO AGUSTA HAVE ARGUED THAT THE CONTESSA ALREADY GOT HER SHARE OF THE AGUSTA FORTUNE AFTER SHE SEPARATED FROM THE COUNT IN 1986 MR HEER TESTIFIED THAT THE SEPARATION AGREEMENT TRANSFERRED TO THE CONTESSA SOME PROPERTIES IN ITALY AND 1 MILLION TO 2 MILLION MR HEER TOLD THE SWISS COURT THAT HE AND HIS LAWYER HAD MET BRIEFLY IN ITALY WITH THE CONTESSA AND HER ADVISERS AFTER HER ATTORNEY APPROACHED HIM BUT HE SAID THE MEETING WAS JUST TO ASCERTAIN HIS WILLINGNESS TO TESTIFY ABOUT ROTHSCHILD'S HANDLING OF AGUSTA FINANCES AS IT RELATED TO THE CONTESSA'S CLAIMS MR LANDMANN DIDN'T RETURN SEVERAL TELEPHONE CALLS MR HEER COULDN'T BE REACHED TO COMMENT 9301190107 930119 GLOBEX SYSTEM SEEKS TO ADD AFTERNOON TRADING SESSION CHICAGO IN AN EFFORT TO BEEF UP TRADING VOLUME ON ITS GLOBEX AFTERHOURS TRADING SYSTEM THE CHICAGO MERCANTILE EXCHANGE APPLIED FOR REGULATORY APPROVAL TO ADD AN AFTERNOON SESSION ON GLOBEX THE SYSTEM WHICH CURRENTLY TRADES FROM 7 PM TO 7 AM EASTERN TIME WOULD ADD TRADING HOURS FROM 330 PM TO 5 PM EASTERN TIME FOR CURRENCY FUTURES AND OPTIONS CONTRACTS IF THE CHANGE IS APPROVED BY THE FEDERAL COMMODITY FUTURES TRADING COMMISSION THE SYSTEM WOULD ADD HOURS FROM 4 PM TO 5 PM EASTERN TIME FOR INTERESTRATE CONTRACTS MORE THAN SIX MONTHS AFTER ITS LAUNCH THE HIGHLY TOUTED GLOBEX SYSTEM HASN'T LIVED UP TO MANY TRADERS' EXPECTATIONS ITS TRADING VOLUME IS ONLY ABOUT 3000 CONTRACTS A NIGHT AND ON THREE OCCASIONS THE START OF TRADING HAS BEEN DELAYED BY TECHNOLOGICAL PROBLEMS IN ADDITION TO EXPANDING TRADING HOURS GLOBEX EXECUTIVES PLAN TO TRY TO INCREASE TRADING VOLUME BY ADDING ABOUT 100 TRADING TERMINALS TO THE 250TERMINAL SYSTEM DURING THE NEXT SIX MONTHS GLOBEX WHICH IS INTENDED TO BE THE WORLD'S FIRST TRULY GLOBAL ELECTRONIC TRADING NETWORK IS A JOINT VENTURE BETWEEN THE CHICAGO MERC THE CHICAGO BOARD OF TRADE AND REUTERS HOLDINGS PLC 9301190106 930119 FINANCING BUSINESS JENNIFER CONVERTIBLES INC JENNIFER CONVERTIBLES INC SAID IT WILL CALL FOR REDEMPTION ALL 115 MILLION OF ITS 10YEAR CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 JENNIFER SAID THE REDEMPTION PRICE FOR EACH 1000 FACE AMOUNT OF DEBENTURES WILL BE 1085 PLUS ACCRUED INTEREST TO REDEMPTION ON FEB 19 THE PARAMUS NJ SPECIALTY SOFABED RETAILER SAID THAT PRIOR TO THE REDEMPTION DATE HOLDERS MAY CONVERT THEIR DEBENTURES INTO COMMON STOCK AT 875 A SHARE OR A CONVERSION RATE OF 114286 SHARES FOR EACH 1000 FACE AMOUNT THE COMPANY'S PRESIDENT HARLEY J GREENFIELD SAID THE REDEMPTION WILL REDUCE INTEREST EXPENSE FOR THE COMPANY HE SAID THE COMPANY'S EQUITY WOULD BE INCREASED SUBSTANTIALLY BY HOLDERS CONVERTING TO COMMON SHARES JENNIFER SHARES CLOSED YESTERDAY AT 13625 UP 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9301190105 930119 US BANCORP NET INCREASES 38 PORTLAND ORE US BANCORP SAID FOURTHQUARTER EARNINGS WERE UP 38 TO A RECORD LEVEL AFTER ACCOUNTING CHANGES CAUSED A REVISION OF YEAREARLIER RESULTS NET INCOME ROSE TO 661 MILLION OR 63 CENTS A SHARE FROM 48 MILLION OR 49 CENTS A SHARE A YEAR AGO PRODUCING A 127 RETURN ON AVERAGE ASSETS THE ACCOUNTING CHANGE A FOURTHQUARTER 1991 INCREASE TO TAX EXPENSE OF 55 MILLION OR FIVE CENTS A SHARE LOWERED NET FROM 535 MILLION OR 54 CENTS A SHARE 9301190104 930119 CYTOGEN SHIPS DIAGNOSTIC AGENT PRINCETON NJ CYTOGEN CORP SAID IT BEGAN SHIPPING ITS MONOCLONAL ANTIBODYBASED DIAGNOSTIC IMAGING AGENT FOR DETECTING COLORECTAL AND OVARIAN CANCER THE FIRST SHIPMENTS OF ONCOSCINT CR/OV WHICH WAS APPROVED BY THE FOOD AND DRUG ADMINISTRATION IN DECEMBER WERE MADE LAST WEEK TO KNOLL PHARMACEUTICALS A DIVISION OF GERMAN CHEMICAL MAKER BASF AG CYTOGEN IS A BIOPHARMACEUTICAL CONCERN THAT DEVELOPS PRODUCTS BASED ON MONOCLONAL ANTIBODIES FOR DIAGNOSTIC AND THERAPEUTIC USES 9301190103 930119 MONDAY'S MARKETS DOW ADVANCES BY 379 POINTS DOLLAR DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN SUBDUED HOLIDAY TRADING AND THE DOLLAR FELL THE TREASURY BOND MARKET WAS CLOSED BUT PRICES FOR TREASURY BOND FUTURES TRADED IN CHICAGO EDGED SLIGHTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE ROSE 379 POINTS TO 327491 STANDARD & POOR'S 500STOCK INDEX SLIPPED 031 TO 43684 WHILE THE NASDAQ COMPOSITE INDEX GAINED 098 TO A RECORD 69813 ANALYSTS SAID MANY INVESTORS TOOK TO THE SIDELINES FOR THE HOLIDAY HONORING MARTIN LUTHER KING EVEN THE USLED ATTACKS ON IRAQ FAILED TO STIR MUCH MARKET ACTIVITY THE ANALYSTS ADDED THAT INVESTORS ARE LIKELY TO BE CAUTIOUS AHEAD OF THE INAUGURATION OF PRESIDENTELECT CLINTON THE MARKET IS WAITING FOR CLINTON SAID JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN INVESTORS HAVE MADE A PRETTY BIG BET THAT HIS ADMINISTRATION WILL BE A SUCCESS AND EVERYONE IS HOPING THE PROMISE IS MATCHED BY REALITY AFTER THE RECENT STRONG RALLY IN SMALL STOCKS MR SHAUGHNESSY SAID INVESTORS MAY DECIDE TO TAKE PROFITS AFTER MR CLINTON ASSUMES THE PRESIDENCY ESPECIALLY IF TENSIONS CONTINUE IN THE MIDDLE EAST I WOULDN'T RULE OUT A NEARTERM CORRECTION AS THE ADMINISTRATION GETS ITS BEARINGS HE SAID IT WON'T BE A SIGNIFICANT DOWNTURN BUT WE'VE HAD A NICE RUN AND THE MARKET NEEDS TO PAUSE IN THE LONGER TERM MR SHAUGHNESSY REMAINS FAIRLY BULLISH ON STOCKS HE PREDICTS THE S&P 500 WILL GAIN ABOUT 10 OVER THE NEXT 12 MONTHS AS LONG AS THE MODEST RECOVERY CONTINUES AND INTEREST RATES STAY LOW WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 044 POINT TO 9196 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 196 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 977 ISSUES ROSE AND 868 FELL THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16135 MARKS AND 12550 YEN COMPARED WITH 16357 MARKS AND 12608 YEN FRIDAY 9301190102 930119 ROCKWELL NET GREW 36 IN FIRST QUARTER EXCLUDING 1991 CHARGE SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP REPORTED FISCAL FIRSTQUARTER NET INCOME OF 1278 MILLION OR 58 CENTS A SHARE COMPARED WITH A YEARAGO LOSS THAT REFLECTED A CHANGE IN ACCOUNTING FOR RETIREMENT BENEFITS EXCLUDING THE ACCOUNTING CHANGE WHICH RESULTED IN A YEARAGO LOSS OF 14 BILLION ROCKWELL'S EARNINGS IN THE LATEST QUARTER ROSE 36 FROM 1233 MILLION OR 54 CENTS A SHARE IN THE PERIOD ENDED DEC 31 SALES SLIPPED TO 249 BILLION FROM 256 BILLION A YEAR AGO DONALD R BEALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE HIGHER FIRSTQUARTER EARNINGS REFLECT A STRENGTHENING IN THE MARKETS FOR THE COMPANY'S INDUSTRIAL AUTOMATION AUTOMOTIVE AND TELECOMMUNICATIONS PRODUCTS EARNINGS IN THE DEFENSE ELECTRONICS SEGMENT WERE DOWN SLIGHTLY FOR THE FISCAL YEAR ENDED SEPT 30 1992 ROCKWELL REPORTED A LOSS OF 104 BILLION OR 462 A SHARE AFTER A CHARGE FOR RETIREE MEDICAL BENEFITS EXCLUDING THE RETIREE MEDICALBENEFIT CHARGE NET WAS 483 MILLION OR 216 A SHARE IN THE PREVIOUS YEAR NET WAS 6005 MILLION OR 257 A SHARE ROCKWELL A MILITARY ELECTRONICS AEROSPACE AND MACHINERYMANUFACTURING CONCERN SAID ITS BACKLOG AT DEC 31 WAS 142 BILLION COMPARED WITH 157 BILLION A YEAR EARLIER THE BACKLOG INCLUDES 37 BILLION OF COMMERCIAL ORDERS 27 BILLION OF FUNDED GOVERNMENT ORDERS AND 78 BILLION OF UNFUNDED GOVERNMENT ORDERS ROCKWELL SHARES FELL 25 CENTS TO 29625 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9301190101 930119 BELL INDUSTRIES BOARD TO SUSPEND DIVIDEND ON COMMON SHARES LOS ANGELES BELL INDUSTRIES INC CITING LOSSES IN THE FISCAL SECOND QUARTER SAID ITS BOARD DECIDED TO SUSPEND THE COMPANY'S QUARTERLY DIVIDEND OF 10 CENTS A SHARE BELL SAID CONTINUED PAYMENTS OF THE DIVIDEND COULD HAVE RESULTED IN THE COMPANY NOT BEING IN COMPLIANCE WITH CERTAIN FINANCIAL COVENANTS IN ITS SENIOR NOTE AGREEMENT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY BELL INDUSTRIES FELL 1625 TO 9625 FOR THE PERIOD ENDED DEC 31 BELL REPORTED A LOSS OF 100000 OR TWO CENTS A SHARE A YEAR EARLIER THE MAKER OF COMPUTER AND ELECTRONICS PRODUCTS EARNED 647000 OR 11 CENTS A SHARE SALES IN THE MOST RECENT SECOND QUARTER AMOUNTED TO 60 MILLION ABOUT EVEN WITH THE YEARAGO PERIOD THEODORE WILLIAMS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID OPERATING EXPENSE LEVELS IN THE ELECTRONICS DISTRIBUTION GROUP HAD BEEN BUDGETED ON THE BASIS OF A SIGNIFICANT SALES INCREASE THAT GOAL WASN'T ACHIEVED HE SAID BELL INDUSTRIES INC'S LARGEST OPERATING SEGMENT THE ELECTRONICS DISTRIBUTION GROUP HAD SALES OF ABOUT 60 MILLION IN THE SECOND QUARTER ENDED DEC 31 AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE SALES FIGURE WAS FOR THE ENTIRE COMPANY 9301190100 930119 HEARD ON THE STREET DRUG STOCKS DRAW SOME BUYERS DESPITE MOST ANALYSTS' SCORN BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL AS DRUG STOCKS EXPERIENCE THEIR WORST PUMMELING IN MORE THAN A DECADE INVESTORS ARE SCURRYING FOR SECOND OPINIONS AS TO WHICH ONES MIGHT RECOVER SOON THE PROGNOSIS FROM WALL STREET ANALYSTS ISN'T GOOD AT LEAST FOR THE NEXT YEAR OR SO WHILE PRESIDENTELECT CLINTON CARVES AWAY AT HEALTHCARE COSTS A FEW LONGTERM INVESTORS ARE STEPPING IN TO BUY BUT THESE BULLS ARE VERY MUCH IN THE MINORITY ONE OF THE LONELY BULLS IS VONTOBEL USA WHICH THIS MONTH HAS BOOSTED ITS HOLDINGS OF US DRUG AND HEALTHCARE STOCKS TO 125 OF ITS PORTFOLIO FROM 5 THE RISK OF INVESTING IN THESE STOCKS IS LESS BECAUSE INVESTORS HAVE ALREADY BID THEM DOWN SO MUCH SAYS EDWIN WALCZAK CHIEF INVESTMENT OFFICER OF VONTOBEL USA AN INVESTMENT MANAGEMENT ARM OF SWISSBASED VONTOBEL HOLDING HE LIKES TODAY'S LOW PRICES FOR JOHNSON & JOHNSON ABBOTT LABORATORIES PFIZER AND BRISTOLMYERS SQUIBB MR WALCZAK SAYS J&J'S PRICE OF 46 3/4 IS ONLY 15 TO 16 TIMES ESTIMATED 1993 EARNINGS WHICH HE FIGURES COULD GROW 14 TO 16 THEN THERE'S PFIZER AT 63 1/4 OFF 2 1/8 YESTERDAY WITH A HIGHLY REGARDED PIPELINE OF NEW PRODUCTS AND TRADING AT LESS THAN 17 TIMES 1993 EARNINGS ESTIMATES MANY BIG PHARMACEUTICAL STOCKS ARE LIMPING ALONG RIGHT AROUND THE MARKET MULTIPLE OF 193 TIMES THE PAST YEAR'S EARNINGS FOR PROFITABLE NEW YORK STOCK EXCHANGE COMPANIES THAT'S QUITE A COMEDOWN FROM THEIR ABOVEMARKET MULTIPLES OF YEARS PAST IN FACT THE BIG DRUG MAKERS LOOK ESPECIALLY CHEAP COMPARED WITH THE MUCH YOUNGER BIOTECHNOLOGY STOCKS WHICH NOSEDIVED YESTERDAY AS CENTOCOR SANK MORE THAN 60 YET MOST OF WALL STREET STILL RECOILS FROM THE DRUG SHARES THE GROUP HAS LOST ITS GROWTHSTOCK CACHET EVEN MR WALCZAK IS APPROACHING THE GROUP CAREFULLY HE HAS JUST SOLD ALL HIS LILLY STOCK WHILE BOOSTING HIS HOLDINGS OF JOHNSON & JOHNSON AS DRUG ISSUES SLID IN RECENT MONTHS MANY ANALYSTS INITIALLY DISMISSED THE PROBLEM AS JUST A ROUTINE MOVE INTO OTHER ECONOMYSENSITIVE STOCKS THEN AS THE STOCKS PLUNGED FURTHER ANALYSTS BLAMED UNCERTAINTY OVER CLINTON ADMINISTRATION PROMISES TO REIN IN PRESCRIPTION DRUGPRICES NOW A NEW BUT EQUALLY DIM VIEW IS TAKING HOLD FUNDAMENTAL CHANGES ARE TAKING PLACE WITHIN THIS INDUSTRY WARNS RONALD STERN AN ANALYST AT HANCOCK INSTITUTIONAL EQUITY SERVICES NEW YORK WHO HELD A CONFERENCE CALL WITH ABOUT 120 RATTLED CLIENTS WEDNESDAY INVESTORS ARE DUMPING DRUG SHARES BECAUSE THEY EXPECT PROFIT GROWTH TO STALL AT AN AVERAGE 10 TO 13 A YEAR WELL INTO THE DECADE WAY DOWN FROM THE PAST 15 TO 20 EVERYONE WANTS TO KNOW IF WE'VE HIT BOTTOM SAYS MR STERN A LONGTIME BULL ON DRUG STOCKS HIS ADVICE PROBABLY NOT ALTHOUGH MANY DRUG ISSUES ARE NEAR 52WEEK LOWS THERE'S AMPLE REASON TO EXPECT THEM TO GO LOWER AND STAY DOWN WELL INTO 1993 FOR THE FIRST TIME IN HIS CAREER MR STERN ISN'T RECOMMENDING ANY BIG DRUG STOCKS SUGGESTING INVESTORS HOLD WHAT THEY HAVE DRUG MAKERS' PROFITS LATELY HAVEN'T BEEN MEETING THE STREET'S TARGETS THE COMPANIES AREN'T ABLE TO PUMP UP PROFITS SIMPLY BY RAISING PRICES OF PRESCRIPTION MEDICINES ANNUALLY BY TWO TO THREE TIMES THE INFLATION RATE AS MANY DID IN THE 1980S SEVERAL HAVE BEEN SCALING BACK THEIR PRICE INCREASES IN A HIGHLY SIGNIFICANT DEVELOPMENT FOR THE FIRST TIME IN YEARS THE NATION'S PHARMACEUTICAL BUYERS SUCH AS LARGE HEALTH MAINTENANCE ORGANIZATIONS AND MAILORDER AND DISCOUNT SUPPLIERS ARE JOINING TOGETHER AND USING THE CLOUT OF THEIR INCREASING SIZE TO BARGAIN DOWN PRICES WHEN HMO DOCTORS MAKE DAILY PRESCRIBING DECISIONS THEY'RE INFLUENCED BY THE BOSS'S MEMOS SPELLING OUT WHICH DRUGS ARE STOCKED IN THE HMO PHARMACY BECAUSE THEY ARE CHEAP THE PHENOMENAL DRUGINDUSTRY PROFIT MARGINS OF PAST YEARS ARE BEING SHARPLY SQUEEZED SAYS MARC MAYER AN ANALYST AT SANFORD C BERNSTEIN & CO HE PREDICTS THAT THE INDUSTRY'S ANNUAL EARNINGS GROWTH WILL DECELERATE FROM AN AVERAGE 18 DURING THE BOOM YEARS TO 11 A YEAR THROUGH 1997 LAST WEEK PAINEWEBBER ANALYST RONALD NORDMANN HELD A CONFERENCE CALL TO COUNSEL EDGY MONEY MANAGERS ABOUT THE RELATIVE MERITS OF BIG DRUG STOCKS UNDER SIEGE SUCH AS MERCK PFIZER BRISTOLMYERS SQUIBB ELI LILLY SCHERINGPLOUGH WARNERLAMBERT AND AMERICAN HOME PRODUCTS MANY OF THE MANAGERS WERE IN NO MOOD TO HEAR BUY RECOMMENDATIONS WE HAVE NEVER EXPERIENCED A MORE NEGATIVE ATTITUDE REGARDING INVESTMENT IN PHARMACEUTICAL EQUITIES SAYS MR NORDMANN AFTER TAKING THE PULSE OF MORE THAN 100 INSTITUTIONAL CLIENTS LAST WEEK BROUGHT MORE BAD NEWS MEDICAL CALIFORNIA'S HUGE MEDICAID PROGRAM SENT SHOCK WAVES THROUGH THE DRUG INDUSTRY WHEN IT ANNOUNCED THAT STARTING JULY 1 IT WON'T REIMBURSE THE COST OF ALL ULCERMEDICINE BRANDS INSTEAD FOLLOWING STIFF PRICE NEGOTIATION WITH DRUG MAKERS MEDICAL SAID IT WILL PAY ONLY FOR MERCK'S PEPCID SMITHKLINE BEECHAM'S TAGAMET AND TWO OTHER DRUGS WHILE REFUSING TO COVER COSTS OF GLAXO'S HUGESELLING ZANTAC AND LILLY'S AXID IN OTHER WORDS IF A DOCTOR PRESCRIBES ZANTAC OR AXID FOR A MEDICAL PATIENT PHARMACISTS MUST PERSUADE THE DOCTOR TO SUBSTITUTE ONE OF THE OTHER DRUGS OR THEY WON'T BE REIMBURSED WITHOUT QUESTION MEDICAL SAYS IT PLANS TO LIMIT PAYMENTS FOR DRUGS IN 12 CATEGORIES OF MEDICINE SUCH THERAPEUTIC SUBSTITUTION IS EXPECTED TO SPREAD TO OTHER STATES AND TO PRIVATE MANAGEDCARE INSURANCE PLANS AND MAY BE INCORPORATED IN A FEDERAL HEALTHCARE PACKAGE MOST INVESTORS ARE SITTING ON THE SIDELINES UNTIL NEW FEDERAL GOVERNMENT PLANS REGARDING DRUG PRICES ARE CLARIFIED SAYS STEPHEN M DALTON A PORTFOLIO MANAGER FOR CORESTATES INVESTMENT ADVISERS PHILADELPHIA WHILE HE BELIEVES PFIZER SMITHKLINE BEECHAM AND MERCK HAVE RESEARCH PIPELINES WORTH BACKING I'M WAITING UNTIL THIS GROUP GETS SO HATED NOBODY IS BUYING THAT MAY NOT BE UNTIL UNE OR EVEN NEXT JANUARY RIGHT NOW HIS MONEY IS GOING INTO HMO COMPANIES GENERICDRUG MAKERS SUCH AS COPLEY PHARMACEUTICALS AND DISCOUNTDRUG BUYERS SUCH AS MEDCO CONTAINMENT SERVICES BUT MANY LONGTIME DRUG INVESTORS SAY THE NEW PRICESENSITIVE ENVIRONMENT PROVIDES OPPORTUNITIES TO MERCK PFIZER BRISTOLMYERS AND SMITHKLINE WHICH HAVE ESPECIALLY BROAD PRODUCT LINES AND NEW INNOVATIVE PRODUCTS COMPANIES WITH UNIQUE ITEMS THE ARGUMENT GOES WON'T BE VULNERABLE TO PRODUCTSUBSTITUTION AND COMPANIES WITH A WIDE ARRAY OF PRODUCTS CAN OFFER BUYERS FAT DISCOUNTS TO FEND OFF SUBSTITUTION IN THE CURRENT ENVIRONMENT JIM FENGER AN ANALYST AT KEMPER FINANCIAL SERVICES IN CHICAGO BELIEVES ABBOTT AND J&J ARE GOOD BETS ABBOTT IS STRONG IN DIAGNOSTICS J&J IS BIG IN NONPRESCRIPTION DRUGS AND BOTH COMPANIES MARKET HOSPITAL SUPPLIES WHERE PROFIT MARGINS ARE STILL RELATIVELY HEALTHY MR NORDMANN OF PAINEWEBBER SAYS DRUG COMPANIES CAN RETAIN ABOVEAVERAGE GROWTH RATES IF THEY REDUCE COSTS AS HE EXPECTS BY SLIMMING SALES STAFFS CONSOLIDATING MANUFACTURING OPERATIONS AND EVEN CUTTING BACK ON RESEARCH SPENDING THERE'S A LOT OF ROOM TO TRIM COSTS MOST DRUG COMPANIES HAVE YET TO FACE THE VAST CUTBACKS IMPOSED ELSEWHERE IN CORPORATE AMERICA WE THINK THE COMPANIES ARE GOING TO GET VERY TOUGH ON RESEARCH PROJECTS THAT ARE MARGINAL MR NORDMANN SAYS GIVEN THE CURRENT INVESTMENT MENTALITY WE'RE SUGGESTING INVESTORS LOOK FOR ENTRY OPPORTUNITIES BUT ONLY IF THEY HAVE ONE TO TWOYEAR INVESTMENT GOALS STEVEN E LEVINGSTON CONTRIBUTED TO THIS ARTICLE 9301190098 930119 ECONOMY WASHINGTON AN EXCHANGE ALLY SEEMS TO BE STRONG CANDIDATE TO HEAD SEC BY JEFFREY H BIRNBAUM AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONSUELA WASHINGTON A LONGTIME HOUSE STAFFER AND AN EXPERT IN SECURITIES LAWS IS A LEADING CANDIDATE TO BE CHAIRWOMAN OF THE SECURITIES AND EXCHANGE COMMISSION IN THE CLINTON ADMINISTRATION MS WASHINGTON 44 YEARS OLD WOULD BE THE FIRST WOMAN AND THE FIRST BLACK TO HEAD THE FIVEMEMBER COMMISSION THAT OVERSEES THE SECURITIES MARKETS MS WASHINGTON'S CANDIDACY IS BEING CHAMPIONED BY SEVERAL POWERFUL LAWMAKERS INCLUDING HER BOSS CHAIRMAN JOHN DINGELL D MICH OF THE HOUSE ENERGY AND COMMERCE COMMITTEE SHE CURRENTLY IS A COUNSEL TO THE COMMITTEE MS WASHINGTON AND MR DINGELL HAVE BEEN CONSIDERED ALLIES OF THE SECURITIES EXCHANGES WHILE BANKS AND FUTURES EXCHANGES HAVE OFTEN FOUGHT WITH THEM A GRADUATE OF HARVARD LAW SCHOOL MS WASHINGTON WORKED AS A LAYWER FOR THE CORPORATE FINANCE DIVISION OF THE SEC IN THE LATE 1970S SHE HAS BEEN A CONGRESSIONAL STAFFER SINCE 1979 SEPARATELY CLINTON TRANSITION OFFICIALS SAID THAT FRANK NEWMAN 50 VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF BANKAMERICA CORP IS EXPECTED TO BE NOMINATED AS ASSISTANT TREASURY SECRETARY FOR DOMESTIC FINANCE MR NEWMAN WHO WOULD BE GIVING UP A JOB THAT PAYS 1 MILLION A YEAR WOULD OVERSEE THE TREASURY'S AUCTIONS OF GOVERNMENT SECURITIES AS WELL AS BANKING ISSUES HE WOULD REPORT DIRECTLY TO TREASURY SECRETARYDESIGNATE LLOYD BENTSEN MR BENTSEN WHO HEADED THE SENATE FINANCE COMMITTEE FOR THE PAST SIX YEARS ALSO IS EXPECTED TO NOMINATE SAMUEL SESSIONS THE COMMITTEE'S CHIEF TAX COUNSEL TO ONE OF THE TOP TAX JOBS AT TREASURY AS EARLY AS TODAY THE CLINTON CAMP IS EXPECTED TO NAME FIVE UNDERSECRETARIES OF STATE AND SEVERAL ASSISTANT SECRETARIES PETER TARNOFF A FORMER CARTER ADMINISTRATION OFFICIAL AND PRESIDENT OF THE COUNCIL ON FOREIGN RELATIONS IS EXPECTED TO BE NAMED UNDERSECRETARY FOR POLITICAL AFFAIRS FORMER SEN TIM WIRTH IS EXPECTED TO GET A NEWLY CREATED UNDERSECRETARY POST FOR GLOBAL AFFAIRS WHICH WOULD INCLUDE REFUGEES DRUGS AND ENVIRONMENTAL ISSUES EARLIER THE COLORADO DEMOCRAT HAD BEEN A LEADING CONTENDER TO HEAD THE ENVIRONMENTAL PROTECTION AGENCY IN ADDITION JOAN SPERO AN EXECUTIVE VICE PRESIDENT OF AMERICAN EXPRESS CO IS A LEADING CANDIDATE FOR UNDERSECRETARY FOR ECONOMIC AFFAIRS AND TIME MAGAZINE COLUMNIST STROBE TALBOTT IS TO BE NAMED AMBASSADORATLARGE TO COORDINATE US POLICY TOWARD THE FORMER SOVIET UNION SEVERAL APPOINTEES OF PRESIDENT BUSH ARE LIKELY TO STAY IN OFFICE AT LEAST TEMPORARILY UNTIL PERMANENT SUCCESSORS CAN BE NAMED ONE IS BERNADINE HEALY DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH ANOTHER LIKELY HOLDOVER IS DAVID KESSLER HEAD OF THE FOOD AND DRUG ADMINISTRATION IN THE OFFFICE OF US TRADE REPRESENTATIVEDESIGNATE MICKEY KANTOR SELECTIONS FOR THE THREE DEPUTY TRADE REPRESENTATIVE SLOTS AND GENERAL COUNSEL ARE STILL TO BE DECIDED BUT ROBERT KYLE THE SENATE FINANCE COMMITTEE'S TRADE COUNSEL IS CONSIDERED A TOP CANDIDATE FOR ONE OF THE SLOTS OR FOR A TRADE POST ELSEWHERE IN THE GOVERNMENT FOR MANY SUBCABINET JOBS THE LIST OF CANDIDATES HAS BEEN NARROWED CONSIDERABLY CLINTON OFFICIALS ARE SAID TO BE DECIDING BETWEEN RECENTLY RETIRED REP MATTHEW MCHUGH D NY AND ENVIRONMENTAL ACTIVIST AND TRANSITION OFFICIAL GUS SPETH FOR THE DIRECTOR OF THE AGENCY FOR INTERNATIONAL DEVELOPMENT AMONG OTHERS EXPECTED TO BE HIRED INCLUDE KITTY HIGGINS AN AIDE TO MICHIGAN REP SANDER LEVIN AS CHIEF OF STAFF IN THE LABOR DEPARTMENT WHILE JERRY PALAST OF THE SERVICE EMPLOYEES INTERNATIONAL UNION IS EXPECTED TO BE THE DEPARTMENT'S DIRECTOR OF LEGISLATIVE AFFAIRS SEPARATELY THE INCOMING CLINTON ADMINISTRATION IS SERIOUSLY CONSIDERING MOVING THE BRIEFING ROOM FOR THE PRESS FOR DECADES SITUATED IN THE WEST WING OF THE WHITE HOUSE OUT OF THE WHITE HOUSE AND INTO THE OLD EXECUTIVE OFFICE BUILDING NEXT DOOR THE CURRENT BRIEFING ROOM COULD BE USED FOR STAFF OFFICES 9301190097 930119 BOEING GETS 525 MILLION ORDER SEATTLE BOEING CO'S COMMERCIAL AIRLINE GROUP SAID ROYAL AIR MAROC PLACED A 525 MILLION ORDER FOR TWINJET 737 AIRCRAFT THE 12PLANE ORDER BRINGS THE MOROCCAN AIRLINE'S TOTAL ORDER FOR NEWGENERATION BOEING AIRCRAFT TO 22 BOEING SAID THE SPECIFIC SERIES OF THE NEW AIRPLANES WILL BE DETERMINED LATER SO FAR 159 CUSTOMERS HAVE ORDERED 1923 OF THE NEWGENERATION BOEING 737S THE AEROSPACE COMPANY SAID 9301190096 930119 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 BALLY'S HEALTH & TENNIS CORP 200 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE JAN 15 2003 PRICED LATE FRIDAY AT PAR TO YIELD 13 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP CRACKER BARREL OLD COUNTRY STORE INC 15 MILLION COMMON SHARES PRICED AT 42 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC MELLON BANK CORP 3750000 NEWLY ISSUED SHARES OF ITS COMMON PRICED AT 5450 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO THE COMPANY GRANTED UNDERWRITERS AN OPTION TO PURCHASE AS MANY AS 562500 ADDITIONAL SHARES TO COVER OVERALLOTMENTS POWERGEN UK 250 MILLION OF 8 7/8 EUROBONDS DUE MARCH 26 2003 AT AN ISSUE PRICE OF 9905 AND A REOFFERED PRICE OF 9745 VIA SG WARBURG SECURITIES LTD YIELD 9265 ANNUALLY A SPREAD OF 075 POINT ABOVE THE 8 GILT DUE IN 2003 FEES 040 REPUBLIC OF PORTUGAL SOVEREIGN 75 BILLION YEN OF 4 7/8 EUROBONDS DUE FEB 12 1998 AT AN ISSUE AND FIXED REOFFER PRICE OF 9995 TO YIELD 489 ANNUALLY A SPREAD OF 075 POINT OVER THE JAPANESE GOVERNMENT BOND NO 106 VIA DAIWA EUROPE LTD FEES 1/4 BAYERISCHE VEREINSBANK OVERSEAS FINANCE GERMAN PARENT 100 MILLION MARKS OF FLOATINGRATE EURONOTES DUE FEB 17 2003 VIA BAYERISCHE VEREINSBANK COUPON 8 1/2 AFTER THE FIRST YEAR AND THEN 132 MINUS THE SIXMONTH LONDON INTERBANK OFFERED RATE ISSUE PRICE IS 10220 FEES UNDISCLOSED SPAR INTERNATIONALE FINANZIERUNGS AMSTERDAM GERMAN PARENT 120 MILLION MARKS OF 7 5/8 EUROBONDS DUE FEBRUARY 25 2000 AT ISSUE PRICE 102 VIA DEUTSCHE GENOSSENSCHAFTSBANK DG BANK REOFFERED AT 9962 TO YIELD 770 ANNUALLY GUARANTEED BY SPAR HANDELS AG HAMBURG GERMANY FEES 2 1/2 CETELEM FRENCH PARENT ONE BILLION FRENCH FRANCS OF 8 1/4 EUROBONDS DUE FEB 17 1997 AT AN ISSUE PRICE OF 100635 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9951 TO YIELD 840 ANNUALLY A SPREAD OF 062 POINT ABOVE THE COMPARABLE FRENCH GOVERNMENT'S OAT ISSUE FEES 1 3/8 9301190095 930119 O'LEARY PLEDGES TO INCREASE FUNDS FOR CONSERVATION BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ENERGY SECRETARYDESIGNATE HAZEL O'LEARY PLEDGED TO INCREASE FUNDING FOR ENERGY CONSERVATION EFFICIENCY AND USE OF RENEWABLE RESOURCES BUT IN REMARKS LESS LIKELY TO PLEASE ENVIRONMENTALISTS MS O'LEARY WHO IS A VICE PRESIDENT FOR NORTHERN STATES POWER CO A MINNESOTABASED UTILITY PARTIALLY DEPENDENT ON NUCLEAR POWER URGED SPEEDY ACTION TO DETERMINE WHETHER THE NATION'S NUCLEAR WASTE CAN BE DEPOSITED AT NEVADA'S YUCCA MOUNTAIN SHE ALSO ENDORSED DEPARTING ENERGY SECRETARY JAMES WATKINS'S SUGGESTION THAT THE FEDERAL GOVERNMENT HAVE THE OPTION OF TAKING TITLE TO EXISTING NUCLEAR WASTE TO ENSURE THE CONTINUED ORDERLY OPERATION OF A CIVILIAN POWER REACTOR MS O'LEARY'S CONFIRMATION HEARING IS SCHEDULED TODAY BEFORE THE SENATE ENERGY COMMITTEE HER REMARKS WERE WRITTEN IN ANSWER TO QUESTIONS SUBMITTED IN ADVANCE BY COMMITTEE MEMBERS THE COMMITTEE RELEASED HER STATEMENTS LAST FRIDAY SCOTT DENMAN EXECUTIVE DIRECTOR OF THE SAFE ENERGY COMMUNICATION COUNCIL A WASHINGTON ADVOCACY GROUP SAID HE WAS VERY OPTIMISTIC AND VERY ENCOURAGED BY THE NOMINEE'S RESPONSES CONCERNING CONSERVATION THIS IS WHAT WE'VE BEEN WAITING FOR FOR A LONG TIME HE SAID BUT HE SAID HE WAS CONCERNED ABOUT HER RESPONSES ON THE NUCLEAR WASTE ISSUE MANY ENVIRONMENTAL GROUPS ARE OPPOSED TO THE YUCCA MOUNTAIN WASTE DEPOSITORY AND RESIST ANY SOLUTIONS TO THE WASTE PROBLEM THAT WOULD ALLOW NUCLEAR PLANTS TO CONTINUE OPERATION IN HER WRITTEN RESPONSES MS O'LEARY ECHOING PRESIDENTELECT CLINTON SHOWED STRONG SUPPORT FOR THE NATURAL GAS INDUSTRY SHE SAID THAT THE ADMINISTRATION WOULD SEEK TO CONVERT THE ECONOMY TO MORE NATURAL GAS USE WHERE IT MAKES SENSE PARTICULARLY FOR ELECTRIC GENERATION AND MOTOR VEHICLES I DRIVE A NATURALGAS CAPABLE VEHICLE SHE SAID AND I WISH MORE PEOPLE DID SHE ALSO SAID SHE FAVORED INCREASING RESEARCH AND DEVELOPMENT SPENDING ON NATURAL GAS I PERSONALLY BELIEVE THAT NATURAL GAS EXPLORATION AND DEVELOPMENT MUST CONTINUE OFFSHORE SHE SAID BUT SHE ADDED WE WILL NOT PROMOTE DRILLING IN NEW ENVIRONMENTALLY SENSITIVE AREAS SEN PAUL WELLSTONE D MINN HAD QUESTIONED MS O'LEARY ABOUT A LOS ANGELES TIMES REPORT THAT SAID SHE PARTICIPATED IN A BACK ROOM COMPROMISE RESULTING IN THE MINNESOTA PUBLIC UTILITIES COMMISSION GRANTING PERMISSION TO NORTHERN STATES POWER TO CREATE AN ADDITIONAL NUCLEAR WASTE STORAGE SITE AT PRAIRIE ISLAND AN ISLAND IN THE MISSISSIPPI THAT ALSO HOUSES AN INDIAN RESERVATION FOR THE MDEWAKANTON SIOUX I STRONGLY DENY THIS ALLEGATION SAID MS O'LEARY WHO ADDED THAT THERE WERE EXTENSIVE PROCEEDINGS HELD ON THIS ISSUE YESTERDAY MEMBERS OF THE MDEWAKANTON SIOUX SAID IN A STATEMENT THAT THEY WERE DENIED THE RIGHT TO TESTIFY AT TODAY'S HEARING BUT THAT THEY WOULD ATTEND 9301190094 930119 INTERNATIONAL RUSSIAN PREMIER RESCINDS ORDER ON PRICE CONTROL FLIPFLOP MARKS A VICTORY FOR MOSCOW REFORMERS STILL RADICALISM FADES BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA'S CONSERVATIVE PRIME MINISTER VIKTOR CHERNOMYRDIN RESCINDED AN ORDER THAT WOULD HAVE EXTENDED STATE PRICECONTROLS OVER A RANGE OF BASIC GOODS MR CHERNOMYRDIN'S PRICEFIXING DECREE ISSUED DEC 31 WAS CRITICIZED BY LEADING ECONOMIC REFORMERS IN THE GOVERNMENT YIELDING TO PRESSURE MR CHERNOMYRDIN SIGNED A RESOLUTION SCRAPPING THE DECREE BORIS FYODOROV A REFORMIST DEPUTY PRIME MINISTER SAID THE DECEMBER DECREE WAS A BUREAUCRATIC SLIPUP WHILE MR FYODOROV DIDN'T DIRECTLY CRITICIZE MR CHERNOMYRDIN THE FLIPFLOP IS AN EMBARRASSMENT FOR THE NEW PRIME MINISTER WHOSE PRICEFIXING PLAN WAS HIS MOST WIDELY PUBLICIZED MOVE SINCE HE SUCCEEDED YEGOR GAIDAR A REFORMER THE REVERSAL RAISES NEW QUESTIONS ABOUT THE DIRECTION OF RUSSIA'S ECONOMIC POLICY MR CHERNOMYRDIN ASSUMED THE PREMIERSHIP PLEDGING TO SOFTEN MR GAIDAR'S REFORMS WHICH LED TO PLUMMETING INDUSTRIAL PRODUCTION AND HUGE PRICE JUMPS BUT MR CHERNOMYRDIN CLEARLY MUST COMPETE FOR INFLUENCE WITH THE GOVERNMENT'S PROREFORM LOBBY INCLUDING MR FYODOROV WHO WAS TAPPED BY RUSSIAN PRESIDENT BORIS YELTSIN TO OVERSEE ECONOMIC AND FINANCIAL POLICY WHILE THE REVERSAL IS A VICTORY FOR THE GOVERNMENT'S REFORMERS THERE ARE SIGNS ELSEWHERE OF AN EMERGING MODERATION IN ECONOMIC POLICY THAT IS SUPPLANTING MR GAIDAR'S MORE RADICAL VISION MR GAIDAR WHO WAS PUSHED OUT BY CONSERVATIVE OPPONENTS IN PARLIAMENT OFTEN SPOKE OF THE NEED TO SHUT DOWN UNPROFITABLE ENTERPRISES SOMETHING THE INTERNATIONAL MONETARY FUND AND OTHER LENDING AGENCIES APPLAUDED MR GAIDAR ARGUED THAT FACTORY CLOSURES AND THE RESULTING WAVES OF UNEMPLOYMENT WERE NECESSARY DURING A TRANSITION FROM A CENTRALLY PLANNED ECONOMY TO A MARKET SYSTEM BUT FIERCE OPPOSITION KEPT MR GAIDAR FROM APPLYING SUCH MEASURES THE NEW GOVERNMENT SEEMS TO HAVE SCRAPPED THE RADICAL VISION EVEN MR FYODOROV A FORMER WORLD BANK DIRECTOR IN WASHINGTON SAID HE BELIEVES IN A MORE CAUTIOUS MIDDLE ROAD HE TOLD REPORTERS HE WOULD PREFER THAT THE GOVERNMENT LIMIT ITS ROLE TO REORGANIZING UNPROFITABLE FACTORIES AND REPLACING OLDGUARD DIRECTORS WHO CONTINUE TO DEMAND STATE BAILOUTS MR FYODOROV ARGUED THAT EVEN THE MOST INEFFICIENT OF SUCH ENTERPRISES WON'T BE SHUT DOWN THE CLOSURE OF ENTERPRISES IS NOT IN THE CARDS MR FYODOROV SAID WE'RE NOT READY FOR UNEMPLOYMENT ON A MASS SCALE ANOTHER SHOWDOWN IS LOOMING OVER THE QUESTION OF PRIVATIZATION THE GOVERNMENT IS MOVING AHEAD WITH A CAMPAIGN TO SELL STATE FACTORIES TO THE PUBLIC INCLUDING AN INITIAL BATCH OF LARGE ENTERPRISES BUT ANATOLI CHUBAIS THE OFFICIAL DIRECTING THE PRIVATIZATION DRIVE FEARS THAT COMMUNIST OPPOSITION IN PARLIAMENT WILL WATER DOWN THE PRIVATIZATION PROCESS BY PASSING LAWS THAT WOULD GIVE OVERLY GENEROUS BENEFITS TO WORKERS IN THE ENTERPRISES BEING SOLD OFF WE WON IN PARLIAMENT IN 1992 MR CHUBAIS TOLD INTERFAX NEWS AGENCY AND IF WE WIN IN 1993 THEN WE SHALL GAIN AN OVERALL VICTORY IT WILL BE IMPOSSIBLE TO ROLL BACK THE PRIVATIZATION PROCESS 9301190093 930119 NATIONSBANK POSTS A PROFIT FOR 4TH QUARTER BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL NATIONSBANK CORP REPORTED FOURTHQUARTER EARNINGS OF 234 MILLION BOLSTERED BY WIDER NETINTEREST MARGINS AND IMPROVED CREDIT QUALITY THE QUARTERLY PROFIT OF 92 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 244 MILLION OR 108 A SHARE THE 1991 QUARTER REFLECTED A SIZABLE LOANLOSS PROVISION AS WELL AS A 314 MILLION CHARGE RELATED TO NCNB CORP'S ACQUISITION OF C&S/SOVRAN CORP THAT TRANSACTION CREATED NATIONSBANK FOR ALL OF 1992 NATIONSBANK REPORTED EARNINGS OF 115 BILLION OR 460 A SHARE COMPARED WITH 202 MILLION OR 76 CENTS A SHARE A YEAR EARLIER WITH ASSETS OF 11806 BILLION AT YEAR END NATIONSBANK IS THE COUNTRY'S FOURTHLARGEST BANKING CONCERN THE RESULTS FOR THE LATEST QUARTER WERE BELOW MOST ANALYSTS' ESTIMATES PRIMARILY BECAUSE OF A SERIES OF ONETIME CHARGES AND OTHER EXPENSES AS IN PREVIOUS QUARTERS CHARGES MADE IT HARD TO DISCERN HOW WELL THE COMPANY ACTUALLY PERFORMED SAID NANCY A BUSH AT BROWN BROTHERS HARRIMAN & CO AT ONE POINT DURING TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NATIONSBANK'S SHARE PRICE WAS OFF 1125 BUT THE STOCK CLOSED THE DAY AT 52125 UNCHANGED THE FOURTHQUARTER RESULTS INCLUDED A ONETIME PRETAX RESERVE OF 50 MILLION FOR CLOSING AND CONSOLIDATING FACILITIES IN THE WAKE OF THE NCNBC&S/SOVRAN MERGER A SPOKESMAN AT NATIONSBANK BASED IN CHARLOTTE NC SAID THE MOVES AFFECTED DOMESTIC BRANCHES AND OFFICES OVERSEAS THE QUARTER ALSO INCLUDED A 10 MILLION INCREASE IN SPENDING ON COMPUTER SYSTEMS DEVELOPMENT 12 MILLION IN LEGAL FEES RELATED TO THE SALE OF REAL ESTATE ASSETS AND ABOUT 10 MILLION IN ADDITIONAL TRANSITION EXPENSES STEMMING FROM THE MERGER ACCORDING TO THE SPOKESMAN NATIONSBANK ALSO RECORDED AN 8 MILLION LOSS IN SECURITIES TRANSACTIONS IN THE 1992 FOURTH QUARTER THIS AFTER A SERIES OF SIGNIFICANT GAINS FROM SUCH TRANSACTIONS INCLUDING 41 MILLION IN THE THIRD QUARTER OF 1992 AND 223 MILLION IN THE 1991 FOURTH QUARTER ON THE PLUS SIDE THE COMPANY NOTED THAT ITS NETINTEREST MARGIN WIDENED TO 423 IN THE FOURTH QUARTER FROM 416 IN THE THIRD QUARTER NETINTEREST INCOME ROSE APPROXIMATELY 4 TO JUST UNDER 110 BILLION FROM 106 BILLION IN THE THIRD QUARTER OF 1992 NATIONSBANK'S PROVISION FOR LOAN LOSSES WAS 150 MILLION IN THE 1992 FOURTH QUARTER UNCHANGED FROM THE 1992 THIRD QUARTER AND DOWN FROM 525 MILLION IN THE 1991 FOURTH QUARTER IN ALL NONPERFORMING ASSETS TOTALED 2 BILLION AT THE END OF THE 1992 FOURTH QUARTER COMPARED WITH 246 BILLION AT THE END OF THE 1992 THIRD QUARTER THE COMPANY SPOKESMAN SAID THAT NATIONSBANK HAD A 4 INCREASE IN LOAN GROWTH IN THE JUSTCOMPLETED QUARTER PRIMARILY IN THE COMMERCIAL AND INDUSTRIAL SECTORS WE FEEL VERY GOOD ABOUT 1992 AND WE FEEL EVEN BETTER ABOUT 1993 HE SAID PENDING TRANSACTIONS INCLUDING THE COMPANY'S PURCHASE OF MOST OF CHRYSLER CORP'S CONSUMER FINANCE UNIT AND A MARKETING VENTURE WITH DEAN WITTER FINANCIAL SERVICES GROUP INC COULD CONTINUE TO MUDDY QUARTERLY RESULTS ANALYSTS SAID BUT NONE PREDICTED DENNIS SHEA AT MORGAN STANLEY & CO SHOULD OBSCURE A SOLID IMPROVEMENT IN CORE UNDERLYING RESULTS 9301190092 930119 DOW CHEMICAL BUYS MDI PLANT MIDLAND MICH DOW CHEMICAL CO SAID IT ACQUIRED A METHYLENE DIPHENYL DIISOCYANATE OR MDI DISTILLATION PLANT FROM SUNGHWA PETROCHEMICAL INDUSTRIAL CO IN SOUTH KOREA TERMS WEREN'T DISCLOSED THE COMPANY SAID THE YOCHEON SOUTH KOREA MDI PLANT HAS AN ANNUAL CAPACITY OF 25000 METRIC TONS IT WILL BE UPGRADED TO MEET DOW STANDARDS AND WILL BE IN COMMERCIAL OPERATION BY APRIL THE PLANT WILL BE A SOURCE OF PRODUCTS FOR HD POLYURETHANE CO A 50/50 JOINT VENTURE RECENTLY FORMED IN KOREA BETWEEN DOW AND HANNAM CHEMICAL CORP TO SERVE THE LOCAL POLYURETHANE MARKET DOW'S KOREAN MDI BUSINESS ORIGINALLY DEVELOPED BY DOW MITSUBISHI KASEI LTD OF JAPAN WILL NOW BE INTEGRATED INTO THE ACTIVITIES OF HD POLYURETHANE MDI IS USED IN A WIDE RANGE OF INDUSTRIES SUCH AS AUTOMOTIVE APPLIANCE AND CONSTRUCTION INDUSTRIES 9301190091 930119 ECONOMY CLINTON TO AIM AT WIDER DEFICIT IN SHORT TERM PLANS ALTHOUGH NOT FINAL MAY INCLUDE ENERGY TAX TO CUT DEFICIT LATER BY JEFFREY H BIRNBAUM AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON TEAM IS PREPARING AN ECONOMIC PLAN AIMED AT STIMULATING THE ECONOMY BY WIDENING THE FEDERAL DEFICIT MODERATELY IN THE SHORT RUN BUT IT ALSO IS SERIOUSLY CONSIDERING A NEW BROADBASED ENERGY TAX TO NARROW THE DEFICIT IN LATER YEARS NO FINAL DECISIONS HAVE YET BEEN MADE CLINTON AIDES CAUTION BUT TRANSITION AND CONGRESSIONAL SOURCES SAY THE WORKING ASSUMPTION AMONG CLINTON ADVISERS IS THAT THE PLAN TO BE UNVEILED NEXT MONTH WILL INCLUDE TAX CUTS SUCH AS AN INVESTMENT TAX CREDIT AND SPENDING INCREASES THAT WIDEN THE DEFICIT IN THE NEAR TERM THE ECONOMY HAS BEEN SHOWING SIGNS OF STRENGTH IN THE PAST FEW MONTHS BUT SOME CLINTON ADVISERS ARE ARGUING FOR A MODEST STIMULUS PERHAPS AS MUCH AS 20 BILLION AS AN INSURANCE POLICY IN VIEW OF THE DEARTH OF NEW JOBS THE STIMULUS ALSO WOULD BE AIMED AT MAKING SURE THAT THE RECENT IMPROVEMENT IN CONSUMER CONFIDENCE IS SUSTAINED EARLIER UPTURNS IN CONFIDENCE SUCH AS THE ONE THAT FOLLOWED THE PERSIAN GULF WAR TWO YEARS AGO HAVE QUICKLY DISSIPATED THE BIG RISK TO SUCH A STRATEGY IS THAT THE PROSPECT OF EVEN WIDER DEFICITS COULD LEAD FINANCIAL MARKETS TO PUSH UP LONGTERM INTEREST RATES OFFSETTING THE BENEFICIAL EFFECTS OF TAX CUTS AND SPENDING INCREASES MR CLINTON'S ADVISERS HOPE TO CALM MARKETS BY SIMULTANEOUSLY OUTLINING HOW THEY INTEND TO REDUCE THE DEFICIT DURING HIS FOURYEAR TERM AIDES SAY THE EVOLVING PLAN WILL PROBABLY INCLUDE STIFF REDUCTIONS IN SPENDING ON GOVERNMENT BENEFITS THEY ALSO SAY THAT MR CLINTON'S ECONOMIC TEAM IS LEANING TOWARD HIGHER TAXES ON CONSUMPTION TO RAISE REVENUE TO SHRINK THE DEFICIT AND IS WEIGHING A BROAD TAX ON ENERGY CONSUMPTION OVER THE WEEKEND VICE PRESIDENTELECT ALBERT GORE SAID PUBLICLY THAT SUCH AN ENERGY TAX HAD BEEN DISCUSSED ONE POSSIBILITY IS A TAX BASED ON THE HEAT CONTENT OF VARIOUS FUELS MEASURED IN BRITISH THERMAL UNITS SUCH A TAX COULD RAISE BILLIONS OF DOLLARS A YEAR THE PRESIDENTELECT AND HIS NOMINEES FOR KEY ECONOMIC POSITIONS HAVE BEEN TALKING PUBLICLY ABOUT A PLAN THAT WOULD REDUCE THE DEFICIT IN FISCAL 1997 WHICH BEGINS OCT 1 1996 BY AT LEAST 145 BILLION OR 150 BILLION FROM WHAT IT WOULD OTHERWISE BE EVEN WHILE INCREASING FEDERAL SPENDING ON CLINTON INVESTMENT PRIORITIES FIGURING OUT PRECISELY WHAT THE DEFICIT WOULD OTHERWISE BE ISN'T SIMPLE SOME ESTIMATES CIRCULATING IN THE CLINTON CAMP FACTOR IN DEFENSESPENDING CUTS THAT PRESIDENT BUSH HAS PROPOSED OTHERS DON'T THE CONGRESSIONAL BUDGET OFFICE IS TO RELEASE ITS NEW DEFICIT PROJECTIONS NEXT WEEK ACCORDING TO ANALYSTS FAMILIAR WITH THE FIGURES THE AGENCY IS EXPECTED TO PROJECT THAT THE FISCAL 1997 DEFICIT WILL BE 30 BILLION OR 40 BILLION BIGGER THAN THE 290 BILLION PROJECTION MADE LAST SUMMER UNLESS CURRENT POLICIES CHANGE MR CLINTON'S ECONOMIC ADVISERS ARE USING ESTIMATES OF BETWEEN 355 BILLION AND 385 BILLION THE CBO FORECAST FOR THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 IS EXPECTED TO BE AROUND 300 BILLION COMPARED WITH A 327 BILLION PROJECTION MADE THIS MONTH BY MR BUSH'S BUDGET OFFICE MEANWHILE MR CLINTON ESCHEWING A CHANCE TO MAKE AN EARLY SYMBOLIC STAND AGAINST THE DEFICIT IS EXPECTED TO DECIDE THIS WEEK AGAINST RETURNING TO A SYSTEM THAT INCLUDES FIXED DEFICIT CEILINGS AND THE THREAT OF AUTOMATIC SPENDING CUTS TO ENFORCE THEM THE 1990 DEFICITREDUCTION LAW REQUIRES THAT MR CLINTON DECIDE BY THURSDAY HIS SECOND DAY ON THE JOB WHETHER TO ADJUST DEFICIT CEILINGS WRITTEN INTO THE LAW RENDERING THE CEILINGS MEANINGLESS OR LEAVE THE CEILINGS ALONE AND RISK ACROSSTHEBOARD SPENDING CUTS DOWN THE ROAD THE DECISION DOESN'T INVOLVE MUCH MONEY BUT IT HAS TAKEN ON EXTRA IMPORTANCE BECAUSE IT PRESUMABLY WILL BE HIS FIRST OFFICIAL DECISION RELATING TO THE BUDGET IT WILL BE WATCHED VERY CAREFULLY AND BE TAKEN AS AN EARLY INDICATION OF WHERE THE PRESIDENT STANDS ON THE DEFICIT SAYS STANLEY COLLENDER WHO TRACKS THE FEDERAL BUDGET PROCESS FOR PRICE WATERHOUSE & CO THE 1990 BUDGET LAW EFFECTIVELY DID AWAY WITH FIXED CEILINGS FOR THE DEFICIT THROUGH THIS YEAR BUT IT REIMPOSED THEM FOR FISCAL 1994 WHICH BEGINS OCT 1 AND THE FOLLOWING YEAR THE LAW GIVES MR CLINTON THE ONETIMEONLY OPTION OF ADJUSTING THE CEILINGS TO REFLECT CHANGES IN THE ECONOMY AND TECHNICAL ESTIMATES THAT HAVE OCCURRED SINCE JANUARY 1992 AND TRANSITION AIDES SAY HE PROBABLY WILL DO SO THIS WOULD MAKE THE CEILINGS IRRELEVANT A SYSTEM OF DEFICIT CEILINGS AND AUTOMATIC SPENDING CUTS WAS ORIGINALLY ESTABLISHED BY THE 1985 GRAMMRUDMAN LAW THE FINAL BUSH PROJECTIONS SHOW THAT UNDER CURRENT TRENDS AND WITHOUT ANY NEW DEFICITREDUCTION INITIATIVE THE GOVERNMENT WOULD EXCEED THE DEFICIT CEILING BY 224 BILLION IN FISCAL 1994 AND 428 BILLION IN 1995 9301190090 930119 CENTOCOR HALTS CLINICAL TRIAL OF ITS MAIN DRUG DATA SHOW HIGH MORTALITY AMONG SOME PATIENTS STOCK PLUMMETS 62 BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL CENTOCOR INC SUSPENDED A MAJOR CLINICAL TRIAL OF ITS FLAGSHIP DRUG BECAUSE OF AN UNEXPECTEDLY HIGH NUMBER OF PATIENT DEATHS CAUSING THE COMPANY'S STOCK TO PLUMMET 62 ON THE OVERTHECOUNTER MARKET THE MALVERN PA BIOTECHNOLOGY CONCERN SAID TESTING OF HA1A ONCE HAILED AS A LIFESAVING THERAPY FOR HOSPITAL PATIENTS IN BACTERIAL SHOCK WAS HALTED AFTER AN INTERIM ANALYSIS OF DATA TURNED UP EXCESS MORTALITY AMONG CERTAIN PATIENTS TREATED WITH THE EXPERIMENTAL DRUG THE COMPANY ALSO HALTED SALES IN EUROPE WHERE THE TREATMENT FOR AN OFTENFATAL CONDITION CALLED SEPTIC SHOCK IS MARKETED AS CENTOXIN CENTOCOR SHARES PLUNGED 10875 TO 6625 IN NATIONAL OVERTHECOUNTER TRADING THE EMERGENCE OF SAFETY QUESTIONS MAKES IT UNLIKELY THAT HA1A WILL EVER BE APPROVED FOR MARKETING IN THE US SECURITIES ANALYSTS SAID BY THE TIME ANY SAFETY ISSUES CAN BE RESOLVED A COMPETING BIOTECHNOLOGY TREATMENT FOR SEPTIC SHOCK WHICH WORKS DIFFERENTLY THAN HA1A IS LIKELY TO BE READY FOR MARKETING THIS TREATMENT CALLED ANTRIL IS BEING DEVELOPED BY SYNERGEN INC A BOULDER COLO BIOTECHNOLOGY CONCERN IF SYNERGEN'S DATA ON ANTRIL ARE POSITIVE IT HAS THE FIELD WIDE OPEN IT HAS NO VIABLE COMPETITOR SAID TEENA L LERNER AN ANALYST AT SHEARSON LEHMAN BROTHERS SYNERGEN FELL 175 A SHARE TO 5950 ALSO IN NATIONAL OVERTHECOUNTER TRADING BECAUSE HA1A WAS TO HAVE BEEN CENTOCOR'S BIGGEST PRODUCT SOME ANALYSTS SAID THE PRODUCT'S DEMISE COULD ENDANGER THE COMPANY ITSELF THIS HAS GOT TO BE THE LAST GASP FOR CENTOCOR SAID DAVID WEBBER BIOTECHNOLOGY ANALYST AT ALEX BROWN & SONS I DON'T SEE HOW THEY CAN RISE FROM THESE ASHES NOW MORE THAN EVER IT'S SYNERGEN'S GAME TO WIN OR LOSE WHILE CLEARLY REELING FROM THE BLOW CENTOCOR EXECUTIVES REFUSED TO ADMIT DEFEAT FOR HA1A I DON'T THINK THIS KILLS THE PRODUCT SAID DAVID P HOLVECK PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT IT CERTAINLY DOESN'T HELP EXPEDITE US APPROVAL MEANWHILE HE SAID THE COMPANY WILL CONTINUE RESEARCH ON DRUGS FOR HEART DISEASE CANCER AND AUTOIMMUNE DISEASE AND DEVELOP ITS PROFITABLE LINE OF DIAGNOSTIC TESTS WHICH HAS ANNUAL SALES OF ABOUT 50 MILLION WE HAVE OPPORTUNITIES TO GROW THAT BUSINESS AND WE HAVE 150 MILLION IN THE BANK MR HOLVECK SAID THE COMPANY STILL HAS VIABILITY CERTAINLY LAST APRIL THE US FOOD AND DRUG ADMINISTRATION SAID THAT A PREVIOUS MAJOR TRIAL HAD FAILED TO PROVE THAT HA1A WAS EFFECTIVE IN REDUCING MORTALITY FROM SEPTIC INFECTIONS WHICH KILL MORE THAN 70000 US HOSPITAL PATIENTS A YEAR THE COMPANY WAS WIDELY CONSIDERED TO BE ON THE ROPES THEN BUT WITH HELP FROM A CASH INFUSION BY ELI LILLY & CO IT DECIDED TO CONDUCT ANOTHER TRIAL IT WAS DURING THIS SECOND TRIAL THAT THE EXCESS MORTALITY PROBLEM STRUCK THE DRUG IS AIMED AT SEPTIC INFECTIONS CAUSED BY SOCALLED GRAMNEGATIVE BACTERIA BUT MANY CASES ARE CAUSED BY GRAMPOSITIVE BACTERIA EITHER TYPE CAN CAUSE A PATIENT TO FALL INTO LIFETHREATENING SHOCK BECAUSE THE SHOCK CAN LEAD TO DEATH WITHIN HOURS DOCTORS HAVE TO BEGIN TREATMENT WITH HA1A BEFORE TEST RESULTS CAN TELL THEM WHETHER THE BACTERIA ARE GRAMNEGATIVE OR GRAMPOSITIVE MR HOLVECK SAID THE COMPANY LEARNED OF THE SAFETY QUESTION OVER THE WEEKEND FROM A REVIEW BOARD OVERSEEING THE CLINICAL TRIAL PRELIMINARY DATA SHOWED THAT IN A SUBGROUP OF PATIENTS LATER DETERMINED TO HAVE GRAMPOSITIVE BACTERIA THE KIND THAT ARE UNAFFECTED BY HA1A THERE WAS A HIGHER DEATH RATE AMONG THOSE TREATED WITH THE DRUG THAN AMONG THOSE WHO TOOK A PLACEBO MR HOLVECK SAID IT WILL TAKE AT LEAST A MONTH TO GET A SECOND REPORT THAT COULD SHED MORE LIGHT ON THE PROBLEM MEANWHILE UNDER THE PROTOCOL FOR THE TRIAL THE FINDING FORCED A HALT TO THE STUDY EVEN IF THE PROBLEMS ARE WORKED OUT MR HOLVECK SAID IT IS HIGHLY UNLIKELY THAT THE DRUG WILL BE APPROVED IN THE US THIS YEAR ONE RESULT COULD BE THAT LILLY BASED IN INDIANAPOLIS WOULD ACQUIRE MARKETING RIGHTS TO CENTORX A PROMISING HEART DRUG IN LATE DEVELOPMENT WITHOUT PAYING ADDITIONAL MONEY TO CENTOCOR UNDER AN AGREEMENT LAST YEAR IN WHICH LILLY ACQUIRED A 5 STAKE IN CENTOCOR LILLY WAS EXPECTED TO PAY 25 MILLION FOR RIGHTS TO CENTORX IF HA1A WAS APPROVED BEFORE JAN 1 1994 A LILLY SPOKEMAN SAID THE COMPANY WAS SURPRISED AND DISAPPOINTED BY THE FINDINGS BUT SAID THEY UNDERSCORE THE COSTS AND RISKS INVOLVED IN THE SEARCH FOR NEW DRUGS LILLY'S STOCK WAS DOWN 150 TO 59875 ON THE NEW YORK STOCK EXCHANGE AFTER THE INITIAL SETBACK LAST APRIL CENTOCOR SHARES SWOONED AS LOW AS 950 BUT THE DEAL WITH LILLY NEW LEADERSHIP LAYOFFS OF ABOUT 600 EMPLOYEES AND TIMELY MANAGEMENT OF THE NEW TRIAL HELPED ATTRACT INVESTORS SUCH AS PAINEWEBBER ANALYST LINDA MILLER TO THE STOCK AS A TURNAROUND CANDIDATE SHARES RECOVERED TO ABOUT 18 THEY SHOWED THEY CAN ACT QUICKLY TO TURN THINGS AROUND SHE SAID NOW IT GETS THAT MUCH TOUGHER MR HOLVECK SAID THAT NO IMMEDIATE NEW LAYOFFS WERE PLANNED BUT THAT THE 200PERSON SALES FORCE WOULD BE VULNERABLE IF CENTOCOR DECIDES TO ABANDON HA1A DAVID STONE ANALYST AT COWEN & CO SAID HE THINKS THE COMPANY WILL SOON DECIDE TO TAKE THAT ROUTE AND CONCENTRATE ON ITS OTHER PRODUCTS SAFETY DOUBTS AMOUNT TO A BLACK EYE THAT WOULD PROBABLY DAMP ENTHUSIASM FOR THE DRUG AMONG REGULATORS AND DOCTORS EVEN IF THE COMPANY CAN EXPLAIN THE PROBLEM HE SAID AND ANY FURTHER INVESTMENT MAY BE FUTILE MEANWHILE THE NEWS ALSO UNDERCUT THE SHARES OF XOMA CORP WHICH FELL 125 TO 8 IN OVERTHECOUNTER TRADING THE BERKELEY CALIF COMPANY IS DEVELOPING A SIMILAR DRUG THAT WAS INITIALLY CONSIDERED A FIERCE COMPETITOR FOR CENTOCOR BUT XOMA ALSO HAD TROUBLE CONVINCING THE FDA THAT ITS PRODUCT WAS EFFECTIVE IN REDUCING DEATH RATES PFIZER INC ITS MARKETING PARTNER HAS TAKEN OVER DEVELOPMENT OF THE DRUG AND IS CONDUCTING A THIRD MAJOR TRIAL WHILE NEITHER XOMA'S NOR CENTOCOR'S DRUG IS NOW EXPECTED TO PLAY A SIGNIFICANT ROLE IN TREATING SEPTIC SHOCK ANALYSTS SAY AN ADVANTAGE FOR SYNERGEN'S ANTRIL IS THAT IN EARLY TRIALS IT APPEARED TO WORK ON INFECTION CAUSED BY BOTH GRAMNEGATIVE AND GRAMPOSITIVE BACTERIA WHETHER ANTRIL'S EARLY PROMISE HAS BEEN CONFIRMED IN ITS RECENTLY COMPLETED MAJOR TRIAL WON'T BE KNOWN FOR SEVERAL WEEKS 9301190089 930119 FLIGHT IS EVIDENT IN ADDRESS CHANGES AND THE DESTINATIONS OF MOVING VANS BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA THE NATION'S MOST POPULOUS STATE RECENTLY GOT THE FIRST NUMBERS SUGGESTING THAT PEOPLE ARE DEPARTING IT CAME FROM A STUDY OF DRIVER'S LICENSE ADDRESS CHANGES ANALYSIS SHOWED THAT IN THE 12 MONTHS ENDED LAST JUNE 13000 MORE LICENSED DRIVERS MOVED OUT OF CALIFORNIA THAN IN AND SINCE THEN AN ADDITIONAL 45000 MORE DRIVERS HAVE LEFT THAN HAVE COME IN THOUGH THAT FIGURE HASN'T BEEN ANNOUNCED THE DECLINES ARE THE FIRST IN NEARLY TWO DECADES CALIFORNIA HAS A POPULATION OF 31 MILLION AND IT IS GROWING BUT IN TERMS OF THE TRAFFIC TO AND FROM OTHER US STATES CALIFORNIA HAD AN ESTIMATED NET OUTFLOW OF 140000 IN 1992 WHICH IS EXPECTED TO RISE TO 190000 ANNUALLY BY THE END OF THE DECADE SAYS DEMOGRAPHER NANCY BOLTON WHO HAS STUDIED THE PATTERNS FOR THE BUSINESS FORECASTING PROJECT AT UCLA ONLY ONCE BEFORE IN RECENT HISTORY HAS THERE BEEN SUCH AN OUTFLOW FROM CALIFORNIA IN THE EARLY 1970S DURING A SHARP ECONOMIC DOWNTURN AND DEFENSEINDUSTRY CONTRACTION NOT UNLIKE TODAY'S CALIFORNIA CONTINUES TO ADD POPULATION BECAUSE OF IMMIGRATION AND A HIGH BIRTH RATE THE STATE HAS A HIGHER PERCENTAGE OF FOREIGNBORN RESIDENTS THAN ANY OTHER AT 22 CALIFORNIA'S DEMOGRAPHIC FUTURE IS CREEPING IN ON TINY FEET SAID THE STATE'S OFFICE OF PLANNING AND RESEARCH IN A REPORT ON THE LATEST CENSUS ADDING THAT IT IS EVIDENT IN THE 57 OF TODAY'S BIRTHS THAT ARE TO WOMEN WHO ARE HISPANIC ASIAN OR BLACK NONHISPANIC WHITES WILL MAKE UP FEWER THAN HALF OF CALIFORNIANS BY THE YEAR 2000 THE UCLA PROJECT ESTIMATES ALTHOUGH ECONOMISTS SAY DEPARTING CALIFORNIANS ARE LEAVING MAINLY BECAUSE OF THE STATE'S DOLEFUL ECONOMY WILLIAM SEAVEY PUBLISHER OF A NEWSLETTER CALLED THE EDEN SEEKER'S GUIDE MAINTAINS THAT WHITE FLIGHT IS CERTAINLY A PART OF THIS ALL THE PEOPLE I DEAL WITH ARE CAUCASIAN PROFESSIONAL MOVERS ARE A GOOD CHECK ON WHERE PEOPLE ARE HEADED MAYFLOWER TRANSIT INC REPORTS THAT IT MOVED 15600 HOUSEHOLDS OUT OF CALIFORNIA LAST YEAR NEARLY 80 MORE THAN IT MOVED IN OUTBOUND WEIGHTS ARE HIGHER THAN INCOMING SUGGESTING THAT THE PEOPLE BAILING OUT ARE RICHER THAN THOSE ARRIVING SUDDEN MIGRATIONS LIKE THIS DON'T HAPPEN VERY OFTEN IT HAS STARTLED US SAYS PATRICK CARR PRESIDENT AND CHIEF OPERATING OFFICER OF MAYFLOWER IN INDIANAPOLIS BECAUSE OF LOPSIDED DEMAND MAYFLOWER AND OTHER MOVERS ARE SHIPPING EMPTY TRUCKS AND TRAILERS BACK TO CALIFORNIA BY RAIL WHICH COSTS LESS THAN DRIVING RYDER SYSTEM INC CHARGES ABOUT 1300 TO RENT A LARGE VAN ONEWAY NORTH TO SEATTLE FROM LOS ANGELES AND ONLY ABOUT 200 SOUTHBOUND EVEN SO WE GET ABOUT ONE TRUCK BACK BY REGULAR RENTAL FOR EVERY 10 GOING OUT SAYS THOMAS G MILLER MANAGER OF RYDER'S SOUTHERN CALIFORNIA RENTALS WHILE MUCH OF THE MIGRATION IS FROM POPULATIONRICH SOUTHERN CALIFORNIA FAMILIES ALSO ARE POURING OUT OF THE SILICON VALLEY AREA SOUTH OF SAN FRANCISCO AS EMPLOYMENT THERE DECLINES SAYS THOMAS DOYLE PRESIDENT OF DOMESTIC OPERATIONS FOR CROWN WORLDWIDE MOVING AND STORAGE MEANWHILE THE PORTLAND ORE CHAMBER OF COMMERCE SAYS REQUESTS FROM CALIFORNIA FOR JOB AND RESIDENCE INFORMATION HAVE TRIPLED FROM LAST YEAR HOUSING COSTS HAVE RISEN IN WASHINGTON AND OREGON AS CALIFORNIANS MOVE NORTH IN PARK CITY UTAH AN INFLUX OF CALIFORNIANS HAS SWELLED SCHOOL CLASS SIZES STATES LIKE UTAH WORRY THAT EVEN SMALL NUMBERS OF NEWCOMERS COULD PLAY HOB WITH LOCAL EMPLOYMENT SAYS KENNETH JENSON AN ECONOMIST IN THE UTAH DEPARTMENT OF EMPLOYMENT SECURITY THERE'S NEARLY AS MUCH UNEMPLOYMENT IN CALIFORNIA AS THERE IS POPULATION IN ALL OF UTAH THAT'S A PRETTY SCARY VISION FOR US SOME CALIFORNIANS ARE MOVING WELL BEYOND THE WEST RYDER FINDS ITS TRUCKS ARE TRAVELING FARTHER THESE DAYS OFTEN TO THE MIDWEST AND EAST IN SOME CASES TO PLACES FAMILIES LEFT DECADES AGO A MIGRATION HOME MR MILLER CALLS IT SEE RELATED ARTICLE MOVING ON AMERICANS WHO SEEK A FUTURE IN CALIFORNIA FIND OTHERS DEPARTING THE EBARBS ALABAMA BOUND LOST THEIR DEFENSE JOBS A HOME AND WAY OF LIFE THE NEW JOADS' HIT THE ROAD WSJ JAN 19 1992 9301190088 930119 POLITICS & POLICY ALLIED AIRCRAFT AGAIN ATTACK TARGETS IN IRAQ SERIES OF LIMITED RESPONSES TO MOVES BY BAGHDAD IS DRAWING CRITICISM BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US BRITISH AND FRENCH AIRCRAFT CARRIED OUT THE THIRD ATTACK ON IRAQ IN SIX DAYS BUT SIGNS OF UNEASE EMERGED AMONG SOME MEMBERS OF THE UNITED NATIONSLED COALITION AGAINST SADDAM HUSSEIN IN THE FIRST DAYLIGHT RAID OVER THE PAST WEEK ABOUT 70 AIRCRAFT REVISITED TARGETS FROM WEDNESDAY'S ACTION AND SWEPT AWAY THE REMAINS OF THE SOUTHERN IRAQ AIRDEFENSE NETWORK US MILITARY OFFICIALS SAID THE STRIKE AGAINST THE THREE COMMANDANDCONTROL AND RADAR SITES CAME AFTER ANOTHER DAY OF CHALLENGES AND CONFRONTATIONS IN NORTHERN AND SOUTHERN IRAQ BOTH YESTERDAY'S AIR RAID AND SUNDAY'S CRUISE MISSILE BARRAGE WERE PRONOUNCED SUCCESSFUL BY US MILITARY OFFICIALS BUT THAT ASSESSMENT CAME AMID GROWING CRITICISM OVERSEAS AND DOUBTS AT HOME ABOUT THE WISDOM OF CONTINUING THE STRATEGY OF LIMITED MILITARY ACTION AGAINST SADDAM HUSSEIN MOST SIGNIFICANTLY RUSSIA CALLED FOR A MEETING OF THE UNITED NATIONS SECURITY COUNCIL TO CONSIDER THE IRAQ SITUATION A STATEMENT ISSUED BY THE RUSSIAN FOREIGN MINISTRY BLAMED IRAQ FOR THE CRISIS BUT NOTED THAT SUNDAY'S ATTACK WHICH IT DIDN'T ENDORSE CAUSED CIVILIAN CASUALTIES IRAQ SAID THE ATTACKS CAUSED AT LEAST 21 DEATHS SOME OF THE DEATHS INCLUDED PEOPLE AT A DOWNTOWN BAGHDAD HOTEL WHICH US OFFICIALS SAID WAS STRUCK BY A DOWNED CRUISE MISSILE IN THE MIDEAST ACCORDING TO WIRESERVICE REPORTS A VARIETY OF ARAB NEWSPAPERS QUESTIONED WHY FORCES ACTING IN THE NAME OF THE UN WERE AGGRESSIVELY ENFORCING THE NOFLY ZONES IN MUSLIM IRAQ BUT NOT THE NOFLY ZONE IN THE FORMER YUGOSLAVIA WHERE BOSNIAN MUSLIMS ARE BEING ATTACKED BY SERBS IN CAIRO EGYPT THE ARAB LEAGUE STATED THAT IT REGRETS THE POLICY OF MILITARY ESCALATION AGAINST IRAQ REUTERS REPORTED IN THE US MEANWHILE MILITARY ANALYSTS QUESTIONED THE BUSH ADMINISTRATION'S PURSUIT OF A TITFORTAT POLICY BUT WONDERED WHETHER PRESIDENTELECT CLINTON WILL HAVE ANY CHOICE BUT TO CONTINUE IT AFTER HE IS INAUGURATED TOMORROW CLINTON IS CAUGHT IN A BOX SAID RETIRED US ARMY COL HARRY SUMMERS HE'S DOESN'T HAVE ANY MANEUVER ROOM ESPECIALLY GIVEN THE BAGGAGE HE'S BRINGING WITH HIM HE'S GOING TO HAVE TO RESPOND LIKE COL SUMMERS SOME INFLUENTIAL OFFICERS WITHIN THE US MILITARY ARGUE THAT THE LIMITED ACTIONS TAKEN OVER THE LAST WEEK HAVE ONLY STRENGTHENED SADDAM HUSSEIN'S POSITION IN THIS VIEW THE IRAQI RULER IS DEFYING THE UN AND THE US AND IS LOSING ONLY MINOR ASSETS THEY WORRY THAT WITH EACH ACTION AGAINST IRAQ THE COALITION EXPENDS POLITICAL CAPITAL AND ALSO RISKS LOSING PILOTS AND CAUSING ADDITIONAL CIVILIAN CASUALTIES BUT HASN'T NOTICEABLY INFLUENCED SADDAM HUSSEIN'S BEHAVIOR IN THIS VIEW A LARGESCALE ATTACK OF THE TYPE THAT WAS BEING DISCUSSED LAST WEEK IN WASHINGTON WHICH WOULD HIT AIRFIELDS AND MILITARY HEADQUARTERS AS WELL AS AIRDEFENSE INSTALLATIONS WOULDN'T HAVE COST MUCH MORE IN POLITICAL CAPITAL BUT MIGHT HAVE SWAYED SADDAM HUSSEIN THE NAME OF THE GAME IS TO DETER HIM SADDAM HUSSEIN FROM FUTURE CHALLENGES SAID PETER RODMAN A FORMER SENIOR STATE DEPARTMENT ADVISER ON MIDEAST ISSUES AND TO DO THAT I THINK YOU HAVE TO DO SOMETHING DISPROPORTIONAL NOT TIT FOR TAT THE INCREMENTAL NATURE OF THE ATTACKS OVER THE PAST WEEK APPEARS TO RUN COUNTER TO JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL'S OFTREPEATED PREFERENCE FOR USING ONLY OVERWHELMING MILITARY FORCE DEFENSE SECRETARYDESIGNATE LES ASPIN IN THE PAST HAS LABELED THIS THE ALLORNOTHING SCHOOL BUT COL FW SMULLEN AN AIDE TO GEN POWELL ARGUED THERE IS NO DISCREPANCY BETWEEN THE GENERAL'S VIEWS AND RECENT US STRATEGY AGAINST IRAQ POWELL HAS RECOMMENDED DECISIVE FORCE' WHATEVER IS NECESSARY TO GET THE JOB DONE HE SAID THAT'S THE STANDARD SIMILARLY A SENIOR US MILITARY OFFICIAL BRIEFING REPORTERS SAID I THINK WE'VE SENT A PRETTY GOOD MESSAGE BY THE WAY WE'VE ACTED YET US MILITARY OFFICIALS SAID THAT IF ANYTHING IRAQ WAS ACTING EVEN MORE PROVOCATIVELY FOLLOWING THE FIRST ATTACKS IN THE NORTHERN NOFLY ZONE THEY SAID EVERY US BRITISH AND FRENCH AIRCRAFT PATROLLING THE ZONE YESTERDAY WAS EITHER FIRED ON BY ANTIAIRCRAFT ARTILLERY OR ILLUMINATED BY RADAR CONNECTED TO SURFACETOAIR MISSILES IN RESPONSE US AIRCRAFT DESTROYED ONE SA6 MISSILE INSTALLATION THEY SAID IN SOUTHERN IRAQ IN ADDITION TO THE RAID OFFICIALS SAID A US F15 FIGHTER WAS CHALLENGED BY AN IRAQI MIG25 FIRED TWO MISSILES AT IT AND PROBABLY DESTROYED IT THEY SAID THE OFFICIALS ALSO CONFIRMED THAT THE EXPLOSION AT THE ALRASHEED HOTEL IN BAGHDAD DURING THE ATTACK SUNDAY WAS CAUSED BY A US CRUISE MISSILE WHICH THEY SAID HAD BEEN KNOCKED OFF COURSE BY ANTIAIRCRAFT FIRE OF THE 45 CRUISE MISSILES LAUNCHED FROM US SHIPS IN THE PERSIAN GULF AND RED SEA ON SUNDAY AGAINST AN INSTALLATION OUTSIDE OF BAGHDAD BELIEVED TO BE INVOLVED IN IRAQ'S NUCLEAR WEAPONS PROGRAM THEY SAID 37 HIT THEIR TARGETS OF THE OTHERS THREE ARRIVED AT THE INSTALLATION BUT MISSED THEIR TARGETS THREE HIT AN ORCHARD JUST SHORT OF THE COMPLEX ONE FELL INTO THE SEA SOON AFTER BEING LAUNCHED AND ONE HIT THE HOTEL 9301190087 930119 POLITICS & POLICY MILITARY STRIKES WON'T CAUSE DAMAGE TO IRAQ'S ARMS PROCUREMENT NETWORK BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RENEWED AIR STRIKES AGAINST SADDAM HUSSEIN'S MILITARY ARSENAL MAY DESTROY SOME OF THE FACILITIES THAT THREATEN IRAQ'S NEIGHBORS AND TROUBLE THE WEST BUT THE RAIDS WON'T TOUCH A CRUCIAL ELEMENT THE SECRET NETWORK OF US EUROPEAN CHILEAN AND JAPANESE COMPANIES THAT HELPED BUILD THE THE ARSENAL IN THE FIRST PLACE SO IT REMAINS POSSIBLE THAT THE NETWORK COULD BE REACTIVATED BY IRAQ OR PERHAPS ANOTHER COUNTRY FOR THE INCOMING CLINTON ADMINISTRATION IT POSES A DILEMMA HOW DO YOU STANCH THE FLOW OF POTENTIALLY DANGEROUS TECHNOLOGIES WITHOUT SERIOUSLY CUTTING INTO US COMPANIES' HIGHTECH EXPORTS MAKING THE PROBLEM TOUGHER STILL MANY OF THE BUILDING BLOCKS FOR IRAQ'S ARSENAL CAME FROM SOCALLED DUAL USE TECHNOLOGIES WHICH HAVE BOTH MILITARY AND PEACEFUL APPLICATIONS A LOOK AT THE EASE WITH WHICH IRAQI OPERATIVES USED BORROWED MONEY BOGUS STORIES AND A TANGLE OF FRONT COMPANIES TO BRING BAGHDAD CHEMICAL WEAPONS GUIDED MISSILES AND A HOST OF NUCLEARRELATED EQUIPMENT SHOWS HOW POROUS THE US EXPORTCONTROL SYSTEM IS TWO OF THE IRAQIS WHO BUILT THE US PROCUREMENT NETWORK ARE STILL HERE FREE TO MOVE AROUND AND EXPERTS IN WEAPONS PROLIFERATION SAY THEY DOUBT THAT BOMBING IRAQI PLANTS CAN COMPLETELY THWART MR HUSSEIN'S AMBITION TO WIELD TERROR WEAPONS THEY STILL REFUSE TO GIVE US THEIR SUPPLIERS' LISTS SAYS DAVID KAY THE FORMER CENTRAL INTELLIGENCE AGENCY ANALYST WHO LED THE FIRST UNITED NATIONS INSPECTION TEAMS INTO IRAQ YOU ABSOLUTELY HAVE TO HAVE IT YOU WANT TO BE ABLE TO DENY THAT NETWORK TO ANYONE ELSE YOU WANT TO KNOW HOW THEY MOVED THINGS AROUND THE UN SECURITY COUNCIL HAS REFUSED TO PERMIT IRAQ TO SELL ITS OIL UNLESS IT YIELDS MORE INFORMATION ABOUT ITS SUPPLIERS MR HUSSEIN HASN'T BUDGED THE IRAQIS WERE SMART BUSINESS PEOPLE SAYS R RICHARD NEWCOMB DIRECTOR OF THE TREASURY DEPARTMENT'S OFFICE OF FOREIGN ASSETS CONTROL WHICH HAS HUNTED DOWN AND FROZEN THE ASSETS OF DOZENS OF IRAQI FRONT COMPANIES IF THEY COULDN'T BUY THE GOODS THEY'D BUY MACHINES TO MAKE THE GOODS IF THEY COULDN'T BUY THAT THEN THEY'D TRY TO BUY OR INVEST IN THE COMPANY THAT MAKES THE MACHINES THE CIA HAD EARLY AND DETAILED KNOWLEDGE OF AT LEAST PARTS OF THE IRAQI NETWORK BUT IN THE CASE OF THE IRAQI PROCURERS THE AGENCY WAS AN ALARM THAT DIDN'T GO OFF BRITISH INTELLIGENCE OFFICIALS WHO CUSTOMARILY SHARE INFORMATION WITH THEIR US COUNTERPARTS SPOTTED THE EMERGING NETWORK IN EARLY 1987 AND DEVELOPED A HIGHLY PLACED SOURCE AT MATRIXCHURCHILL CORP A MACHINETOOL COMPANY THAT HAD BEEN BOUGHT BY THE IRAQIS SOURCE IS IN NO DOUBT THAT ALL OF THESE TOOLS WILL BE USED IN IRAQ FOR THE PRODUCTION OF WEAPONS SAYS A SECRET NOTE FROM THE INTELLIGENCE OFFICIALS CIRCULATED WITHIN BRITISH MINISTRIES IN NOVEMBER 1987 BRITISH DOCUMENTS RELEASED DURING THE RECENT TRIAL OF MATRIXCHURCHILL OFFICIALS SHOW THAT IN MAY 1988 THE BRITISH GOVERNMENT WAS TRACKING SAFA ALHABOBI AN IRAQI ENGINEER WHO WAS RUNNING MATRIXCHURCHILL AND HAD BEGUN MAKING FREQUENT VISITS TO THE UNITED STATES THERE HE USED MATRIXCHURCHILL'S SMALL CLEVELAND UNIT AS A BASE FOR CONTACTING US COMPANIES MR HABOBI A MAN IN HIS MIDFIFTIES WITH A SMALL GOATEE WAS SELFCONSCIOUS ABOUT HIS BROKEN ENGLISH AND LEFT MOST OF HIS US WEAPONSRELATED SHOPPING TO TWO IRAQI SUBORDINATES SAALIM SAM NAMAN 33 YEARS OLD AND ANEES WADI 41 THE IRAQI STRATEGY WAS TO SET UP FRONT COMPANIES WHICH IN TURN DEVELOPED DAISY CHAINS OF SMALL SUPPLIERS LEAVING A TWISTED TRAIL OF HUNDREDS OF PARTICIPANTS EACH OF WHICH WAS FAMILIAR WITH ONLY A PIECE OF THE LARGER PROCUREMENT EFFORT MR KAY BELIEVES IT'S A TACTIC THAT IRAQI SPYMASTERS LEARNED FROM THEIR EAST GERMAN TRAINERS WHO HAD HONED THEIR SKILLS IN EVADING EXPORT CONTROLS IN WEST GERMANY WHERE IRAQ'S PROCUREMENT EFFORTS BEGAN ONE US SUPPLIER WAS XYZ OPTIONS INC A TUSCALOOSA ALA CONCERN FOUNDED IN 1988 AFTER MR NAMAN TRACKED DOWN WILLIAM H MUSCARELLA THE SALES MANAGER FOR A NORTHPORT ALA COMPANY THAT HAD BUILT A HIGHLY MODERN CARBIDETOOL PLANT IN MESQUITE TEXAS AS MR MUSCARELLA LATER TESTIFIED IN A CIVIL CASE PENDING IN ATLANTA'S FEDERAL COURT MR HABOBI AND MR NAMAN TOLD HIM THEY WANTED A SIMILAR PLANT BUILT IN IRAQ MR MUSCARELLA SET UP XYZ OPTIONS WITH 100 AND A BORROWED TELEX MACHINE SOON THE IRAQIS BACKED IT UP WITH A 14 MILLION LETTER OF CREDIT THEY ARRANGED THROUGH THE ATLANTA BRANCH OF BANCA NATIONALE DEL LAVORO WHICH FUNNELED MORE THAN 2 BILLION OF ILLEGAL LOANS TO IRAQ IN ALL 30 US AND FOREIGN COMPANIES CONTRIBUTED PIECES OF THE XYZ PLANT WHICH WAS COMPLETED IN IRAQ IN THE LATE SPRING OF 1990 MONTHS BEFORE IRAQ'S INVASION OF KUWAIT ONE OF THE SUPPLIERS CARBITECH INC OF TOPEKA IND WAS OFFERED 584029 TO TRAIN 21 SKILLED IRAQI TECHNICIANS TO RUN THE PLANT IRAQI WORKERS BEGAN ARRIVING IN TOPEKA IN FEBRUARY 1989 CARBIDE PLANTS CLEARLY FIT THE DUALUSE CATEGORY THEY MAKE SUPERHARD CUTTING TOOLS THAT CAN BE USED SAY FOR MAKING AUTOMOBILE TRANSMISSION PARTS BUT WHEN MATED WITH SOPHISTICATED COMPUTERCONTROLLED LATHES AND GRINDERS THEY CAN FABRICATE THE PRECISELY SHAPED URANIUM AND TUNGSTEN CARBIDE INNARDS REQUIRED FOR A NUCLEAR WARHEAD IN THE LATE SPRING AND EARLY SUMMER OF 1989 BEFORE BNLATLANTA'S CLANDESTINE LOANS TO IRAQ WERE KNOWN THE CIA BEGAN TRYING TO MAKE SENSE OF THE IRAQ NETWORK TRACING IT DOWN THROUGH XYZ TO THE LEVEL OF OBSCURE COMPANIES SUCH AS CARBITECH ACCORDING TO RICHARD W KENDRICK VICE PRESIDENT OF XYZ TWO CIA AGENTS QUIZZED HIM ABOUT THE PLANT THEN ONE OF THE AGENTS VISITED WAYNE JANOWSKI PRESIDENT OF CARBITECH WHO SAYS HE AND HIS STAFF ANSWERED QUESTIONS ABOUT THE IRAQIS THEY WERE TRAINING AND THE MACHINERY THEY WERE OPERATING THEY THE CIA DON'T TELL YOU ANYTHING THEY JUST LOOK AND SAY OH YES OH YES' MR JANOWSKI RECALLS OF THE INTERVIEW JUST WHAT THE CIA DID WITH THE INFORMATION IT GATHERED REMAINS A MYSTERY THE CIA REFUSES TO COMMENT ON ITS XYZ PROBE FEDERAL PROSECUTORS WHO RAIDED BNLATLANTA IN AUGUST 1989 ARE STILL TRYING TO FIGURE OUT WHAT THE CIA KNEW ABOUT THE BANK AND THE NETWORK IT FINANCED INDEED THE CIA SAYS IT IS INVESTIGATING ITSELF OVER THE MATTER ONE GOVERNMENT OFFICIAL WHO HAD ACCESS TO ALL THE US INTELLIGENCE DATA EXPLAINED THAT INFORMATION ON DIFFERENT SEGMENTS OF THE IRAQI NETWORK WERE COLLECTED AND PUT INTO SEPARATE DATA BANKS BUT NO ONE BOTHERED TO SIT DOWN AND FIGURE OUT WHAT IT ALL MEANT UNTIL AUGUST 1990 WHEN IRAQ INVADED KUWAIT HE SAID MESSRS KENDRICK AND MR MUSCARELLA OF XYZ SAY THE IRAQIS ALWAYS TOLD THEM THEIR PLANT WAS TO BE USED FOR COMMERCIAL PURPOSES THE INTELLIGENCE EXPERTS WHEN THEY FINALLY PIECED THE PUZZLE TOGETHER REACHED A STARKLY DIFFERENT CONCLUSION THE XYZ OFFICIALS RECEIVED A FURTHER DETAILED QUIZZING BY US NAVAL INTELLIGENCE AGENTS IN LATE 1990 BEFORE THE WAR WITH IRAQ MR KENDRICK SAYS THEY LATER LEARNED THE PLANT WAS BOMBED MR HABOBI AND MR NAMAN MAY HAVE SCORED THEIR MOST NOTABLE COUP WHEN THEY PERSUADED DR BEURT SERVAAS THE OWNER OF SERVAAS INC TO SELL MATRIXCHURCHILL A 40 MILLION BRASS REFINERY EXTRACTING A 2 MILLION COMMISSION FOR THEIR SERVICES DR SERVAAS A 73YEAROLD INDIANAPOLIS INDUSTRIALIST WAS TRAINED BY THE BRITISH IN INTELLIGENCE OPERATIONS ON THE EVE OF WORLD WAR II AND HE RECALLS TEACHING NEWLY RECRUITED SPIES WITH THE US OFFICE OF STRATEGIC SERVICES THE PROPER WAY TO CONCOCT A FRONT COMPANY DR SERVAAS TOOK THREE TRIPS TO IRAQ TO SUPERVISE CONSTRUCTION OF THE BRASS REFINERY BUT DIDN'T SUSPECT THE MILITARY USE BEHIND THE PLANT REP HENRY B GONZALEZ CHAIRMAN OF THE HOUSE BANKING COMMITTEE SAYS HE HAS SINCE FOUND MATRIXCHURCHILL DOCUMENTS THAT SHOW THE BRASS INGOTS FROM THE REFINERY WERE TO BE USED TO MAKE SHELLS FOR IRAQI HOWITZERS ALTHOUGH THEY ESTABLISHED THE SUPPLIER NETWORK THAT EVADED US EXPORT CONTROLS NONE OF THE THREE IRAQIS HAS BEEN PROSECUTED IN FEBRUARY 1991 AS US ARMORED COLUMNS MOVED INTO IRAQ THE JUSTICE DEPARTMENT INDICTED MR HABOBI FOR HIS ROLE IN ALLEGEDLY DEFRAUDING BNL OF THE MONEY USED TO FINANCE HIS DEALS BUT MR HABOBI IS BELIEVED TO BE OPERATING IN JORDAN SAFELY BEYOND THE REACH OF FEDERAL MARSHALS AS FOR MESSR NAMAN AND WADI FEDERAL AGENCIES SEEM CONFUSED ABOUT WHAT TO DO WITH THEM AFTER STUDYING MR NAMAN'S APPLICATION FOR AT LEAST A YEAR THE STATE DEPARTMENT ISSUED AN IMMIGRANT VISA TO HIM IN AMMAN JORDAN ON AUG 4 THAT ALLOWED HIM TO COME TO THE US AND APPLY FOR PERMANENT RESIDENCE WHICH HE PROMPTLY DID NOW THE STATE DEPARTMENT IS TRYING TO EXPEL HIM AFTER A GOVERNMENT DETERMINATION THAT HE HAD ACTED AS AN IRAQI AGENT THE TREASURY HAS FROZEN THE ASSETS OF MR WADI WHOSE LUCRATIVE DEALS INCLUDED BUYING A FIBERGLASS MANUFACTURING PLANT THAT WAS SHIPPED TO IRAQ THE IMMIGRATION AND NATURALIZATION SERVICE ON THE OTHER HAND HAS GIVEN MR WADI'S WIFE POLITICAL ASYLUM A RULING THAT ALSO LEAVES MR WADI FREE TO ROAM AROUND IN THE US 9301190086 930119 XEROX PLANS TO WITHDRAW COMPLETELY FROM THE FINANCIALSERVICES INDUSTRY BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL XEROX CORP ABANDONED ITS EFFORT TO DIVERSIFY AWAY FROM OFFICE EQUIPMENT SAYING IT WILL WITHDRAW FROM THE FINANCIALSERVICES FIELD IT ENTERED ABOUT A DECADE AGO THE LONGAWAITED DECISION WAS A HUMBLING ADMISSION OF FAILURE FROM XEROX WHICH BOUGHT INTO THE BUSINESS AT ITS PEAK ONLY TO WATCH THE INVESTMENT SPOIL THE ACCLAIMED COMEBACK IN ITS CORE COPIER OPERATION THE PLANNED RETREAT MAY PROVE PAINFUL FOR XEROX SHAREHOLDERS TOO THE COMPANY ANNOUNCED AN AFTERTAX CHARGE OF 778 MILLION FOR THE FOURTH QUARTER THE COMPANY ALSO SAID IT MIGHT MAKE A STOCK OFFERING THIS YEAR TO STRENGTHEN ITS BALANCE SHEET EVEN THOUGH THAT MOVE WOULD PROBABLY DILUTE THE EARNINGS VALUE OF CURRENT INVESTORS' HOLDINGS XEROX DIDN'T GIVE ANY TIMETABLE FOR SELLING OFF ITS CRUM & FORSTER INC INSURANCE BUSINESS ALTHOUGH IT SAID IT SHOULD SELL ITS FURMAN SELZ INVESTMENTBANKING AND XEROX LIFE INSURANCE OPERATIONS THIS YEAR IN AN INTERVIEW CHAIRMAN PAUL ALLAIRE SAID THE CRUM & FORSTER SALE COULD TAKE A COUPLE OF YEARS XEROX HAS ALREADY AGREED TO SELL ITS VAN KAMPEN MERRITT MUTUALFUND BUSINESS FOR 360 MILLION TO CLAYTON DUBILIER & RICE A NEW YORK INVESTMENT BOUTIQUE ITS EQUIPMENTFINANCING BUSINESSES AREN'T FOR SALE THE COMPANY SAID XEROX CONCEIVED ITS MOVE INTO FINANCIAL SERVICES AS A COUNTERBALANCE TO ITS FADING BUSINESS IN COPIERS WHICH HAD BEEN DECIMATED IN THE LATE 1970S BY JAPANESE COMPETITORS BUT STRICT QUALITY CONTROL AND STRONG MANAGEMENT SPARKED A RESURGENCE IN COPIERS WHILE BY 1990 ITS FINANCIALSERVICES OPERATIONS HAD DETERIORATED INTO A POORLY PERFORMING 5 BILLION DISTRACTION IN THE MIDDLE OF 1990 MR ALLAIRE TOOK OVER AS CHIEF EXECUTIVE OFFICER OF THE 18 BILLION COMPANY HE HAD BEEN A MAJOR ARCHITECT OF THE COPIER COMEBACK AND HIS RISE MARKED THE EFFECTIVE END OF THE DIVERSIFICATION STRATEGY UNDER HIS DIRECTION XEROX QUICKLY FENCED OFF FINANCIAL SERVICES FROM THE REST OF THE COMPANY DECLINING TO PROP UP THE FALTERING BUSINESS WITH PROFIT FROM COPIERS AND PRINTERS MR ALLAIRE BECAME CHAIRMAN IN MAY 1991 EVEN BEFORE HE BECAME CEO MR ALLAIRE HAD RAISED THE POSSIBILITY OF QUITTING FINANCIAL SERVICES AND WHILE YESTERDAY'S ANNOUNCEMENT WAS THE FIRST OFFICIAL XEROX STATEMENT OF SUCH A POLICY MR ALLAIRE SAID THE DIRECTION HAD BEEN FAIRLY CLEAR ALL ALONG IT QUICKLY BECAME APPARENT THAT THE SHAREHOLDERS MIGHT BE BETTER SERVED BY A COMPLETE DISENGAGEMENT HE SAID SECURITIES ANALYSTS HAVE BEEN PUSHING XEROX TO LEAVE FINANCIAL SERVICES FOR SOME TIME NOW AND THEY GENERALLY WERE PLEASED BY THE NEWS BUT THEY SAID IT WON'T COME WITHOUT FINANCIAL PAIN AND NOTED THAT THE COMPANY STILL MUST FIND BUYERS FOR THE BUSINESSES IT IS SHEDDING XEROX SAID IT WILL TAKE THE FOURTHQUARTER CHARGE TO BOLSTER THE BOOKS OF ITS FINANCIALSERVICES BUSINESSES FOR POTENTIAL BUYERS THE LARGEST PORTION 470 MILLION WILL CONSIST OF A WRITEDOWN OF THE BUSINESSES' GOODWILL OR THEIR ESTIMATED VALUE ABOVE BOOK VALUE CRUM & FORSTER'S PROPERTYCASUALTY RESERVES WILL BE STRENGTHENED TO THE TUNE OF 288 MILLION AND THE REMAINING 20 MILLION WILL GO FOR VARIOUS ADJUSTMENTS XEROX HAD SAID IT WOULD INCUR A CHARGE IN THE FOURTH QUARTER FOR THE RESTRUCTURING OF CRUM & FORSTER AFTER TAKING A 444 MILLION CHARGE FOR THE SAME PURPOSE IN THE THIRD PERIOD THE COMPANY IS SLICING CRUM & FORSTER INTO PIECES THAT CAN BE SOLD MORE EASILY THAN THE ENTIRE UNIT MR ALLAIRE SAID A FEW SEGMENTS COULD NOW BE SOLD FAIRLY QUICKLY BUT THE REMAINDER CAN'T BE OFFERED UNTIL XEROX GETS REGULATORY BLESSING HE SAID XEROX HAS TALKED TO SEVERAL POTENTIAL BUYERS OF PIECES OF CRUM & FORSTER BUT WON'T SELL QUICKLY JUST TO GET RID OF THE UNIT THE INTENT IS TO DO THIS AS SOON AS WE CAN BUT WE'RE NOT GOING TO FIRESALE IT HE SAID XEROX IS NEGOTIATING TO SELL FURMAN SELZ TO ITS MANAGERS MR ALLAIRE SAID ALTHOUGH IT MIGHT RETAIN A SMALL STAKE IN THE BUSINESS HE SAID THE COMPANY HASN'T OFFERED XEROX LIFE FOR SALE UNTIL NOW BUT HAS BEEN APPROACHED BEFORE AND EXPECTS IT TO SELL FAIRLY EASILY ONCE ALL THE FINANCIALSERVICES BUSINESSES ARE SOLD ABOUT 26 BILLION IN ASSOCIATED DEBT WILL BE REMOVED FROM XEROX'S BOOKS BUT ANALYSTS SAID THAT DEBT ALREADY IS BEING SERVICED SOLELY BY THE BUSINESSES THEMSELVES MEANING THE REMOVAL WON'T FREE UP ANY FUNDS FOR THE REST OF XEROX'S BUSINESS TO STRENGTHEN THE COMPANY'S EQUITY BASE XEROX SAID IT WILL CONSIDER ISSUING AS MUCH AS 500 MILLION OF NEW SHARES IN THE FIRST HALF OF 1993 A MOVE THAT WOULD DILUTE THE EARNINGS VALUE OF EXISTING XEROX SHARES BY AS MUCH AS 5 ANALYSTS ESTIMATED DAN MANDRESH OF MERRILL LYNCH & CO SAID ALL THIS WAS THE INEVITABLE RESULT OF A BAD INVESTMENT DECISIONBUT I DON'T CONSIDER 5 DILUTION TO BE EXCESSIVE HE ADDED A XEROX SPOKESMAN SAID THE COMPANY DOESN'T EXPECT ANY MATERIAL DILUTION PARTICULARLY WHEN COMPARED WITH THE IMPACT OF THE INCREASED COST OF FUNDING IF THE COMPANY'S CREDIT RATINGS ARE DOWNGRADED IN REACTION TO THE COMPANY'S MOVES YESTERDAY STANDARD & POOR'S CORP SAID IT AFFIRMED ITS RATINGS ON THE DEBT OF XEROX AND CERTAIN OF ITS UNITS TAKING THEM OFF REVIEW S&P AFFIRMED XEROX'S SINGLEA RATING ON SENIOR DEBT AND SINGLEAMINUS RATING ON PREFERRED STOCK AS WELL AS THE A1 RATING ON COMMERCIAL PAPER OF XEROX XEROX CREDIT CORP XEROX CREDIT OVERSEAS FINANCE NV AND XEROX MEXICANA SA BUT S&P SAID CRUM & FORSTER AND ITS AFFILIATES WILL REMAIN ON REVIEW WITH NEGATIVE IMPLICATIONS AND THAT XEROX LIFE'S DEBT WILL BE REVIEWED SEPARATELY XEROX BASED IN STAMFORD CONN SAID IT WILL ADOPT STANDARDS 106 AND 109 OF THE FINANCIAL ACCOUNTING STANDARDS BOARD EFFECTIVE WITH ITS 1992 RESULTS THE RESULT OF ADOPTING STANDARD 109 WHICH DEALS WITH ACCOUNTING FOR MEDICAL BENEFITS FOR RETIREES WILL BE A ONETIME AFTERTAX CHARGE OF 606 MILLION AS A CATCHUP MEASURE PLUS A 44 MILLION AFTERTAX CHARGE FOR 1992 ROUGHLY IN LINE WITH XEROX'S ESTIMATES IN ITS 1991 ANNUAL REPORT IMPLEMENTING STANDARD 106 WHICH CHANGES THE METHOD OF ACCOUNTING FOR INCOME TAXES WILL DECREASE SHAREHOLDERS' EQUITY BY 23 MILLION SUBSTANTIALLY LESS THAN THE COMPANY'S ESTIMATE XEROX SAID THE STANDARD WON'T HAVE ANY MATERIAL EFFECT ON FUTURE RESULTS ACCORDING TO THE COMPANY 9301190085 930119 GLAXO UNIT EXERCISES OPTION MISSISSAUGA ONTARIO GLAXO CANADA INC A UNIT OF GLAXO HOLDINGS PLC OF BRITAIN EXERCISED AN OPTION TO PURCHASE ABOUT 39 MILLION COMMON SHARES OF BIOCHEM PHARMA INC FROM THE COMPANY FOR A TOTAL OF 303 MILLION CANADIAN DOLLARS US236 MILLION OR C780 A SHARE THE TRANSACTION TO BE COMPLETED BY MONDAY WILL RAISE GLAXO'S STAKE IN BIOCHEM TO 17 FROM 94 IN TRADING ON THE MONTREAL EXCHANGE BIOCHEM STOCK CLOSED YESTERDAY AT C19875 A SHARE DOWN 50 CANADIAN CENTS GLAXO CANADA BASED IN MISSISSAUGA AND BIOCHEM PHARMA OF LAVAL QUEBEC ARE PHARMACEUTICAL COMPANIES 9301190083 930119 BUSINESS BRIEF KODAK IS EXPECTED TO ANNOUNCE ROUND OF EMPLOYEE LAYOFFS ROCHESTER NY EASTMAN KODAK CO IS EXPECTED TO ANNOUNCE TODAY THE FIRST ROUND OF 2000 TO 4000 PREVIOUSLY PLANNED LAYOFFS MOSTLY RESEARCH AND DEVELOPMENT JOBS THE PHOTOGRAPHY HEALTH AND CHEMICALS CONCERN HAS CLOSE TO 130000 EMPLOYEES INCLUDING ABOUT 70000 IN THE US THE LAYOFFS ARE EXPECTED TO TARGET THE RESEARCH AND DEVELOPMENT ARM OF KODAK'S TROUBLED COPY PRODUCTS DIVISION PEOPLE CLOSE TO THE COMPANY SAID KODAK DECLINED TO COMMENT THE POTENTIAL LOSS OF THE RESEARCH AND DEVELOPMENT ARM RAISES FURTHER QUESTIONS ABOUT KODAK'S COMMITMENT TO THAT BUSINESS THE DIVISION HAS BEEN HIT IN THE LAST YEAR BY THE LOSS OF A HALF DOZEN TOP EXECUTIVES INCLUDING THE DIVISION'S FOUNDER MICHAEL J MURRAY WHO RETIRED IN NOVEMBER IN OCTOBER KODAK SOLD THE DIVISION'S FINANCING UNIT EASTMAN CREDIT CORP KODAK EARNED A REPUTATION FOR RELIABILITY WITH ITS HIGHVOLUME OFFICE COPIERS BUT FOUND ITSELF IN THE WRONG MARKET NICHE IN THE MID80S AS MORE COMPANIES TURNED TO LOWVOLUME COPIERS KODAK TRIED TO SHORE UP ITS POSITION LAST YEAR BY FORMING A MANUFACTURING ALLIANCE WITH CANON USA INC A UNIT OF CANON INC TOKYO THE COPY PRODUCTS DIVISION MAKES UP THE BULK OF KODAK'S INFORMATION SYSTEMS UNIT WHICH SOME ANALYSTS HAVE CALLED A PROBLEM CHILD THE UNIT ALSO INCLUDES KODAK'S SUCCESSFUL BUT MATURE MICROGRAPHICS BUSINESS AND SEVERAL MONEYLOSING ELECTRONICS AND SOFTWARE BUSINESSES THAT KODAK IS TRYING TO SELL THE PLANNED LAYOFFS WHICH COME ON THE HEELS OF A COSTLY EARLYRETIREMENT PLAN ACCEPTED BY 8321 EMPLOYEES WOULD BE THE FIRST IN KODAK'S HISTORY NOT PROMPTED BY PRODUCTION CUTBACKS IN 1983 AFTER THE FLOP OF ITS DISK CAMERA AND PRODUCTION PROBLEMS WITH A BLACK AND WHITE COPIER AND A BLOOD ANALYZER KODAK DISMISSED ABOUT 2000 WORKERS 9301190081 930119 PUBLIC COFFER INNERCITY CAPITALISTS PUSH TO START A BANK FOR THEIR COMMUNITY GRAND RAPIDS MICH GROUP LABORS TO SET UP LENDER OF THE SORT CLINTON BACKS OPPOSITION ON MAIN STREET BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL GRAND RAPIDS MICH IN THE BASEMENT OF THE NEW HOPE BAPTIST CHURCH ACROSS THE STREET FROM A PUBLICHOUSING PROJECT HERE A DOZEN BUSINESS OWNERS ARE DISCUSSING HOW DIFFICULT IT IS FOR MINORITY ENTREPRENEURS TO GET BANK LOANS JACK BLACK SAYS HIS PLANS FOR EXPANDING HIS TUXEDORENTAL BUSINESS CLASSIC FORMAL WEAR AND CLEANERS ARE ON HOLD BECAUSE HE CAN'T GET A BANK LOAN I WAS DECLINED BECAUSE WE'D ONLY BEEN IN BUSINESS TWO YEARS HE SAYS BIRTHALE LAMBERT PRESIDENT OF PROFESSIONAL NURSING FORCE INC WHICH SUPPLIES HEALTHCARE PERSONNEL SAYS I NEVER ASKED FOR A LOAN BECAUSE ALL MY FRIENDS GOT TURNED DOWN FRANK THOMAS RECALLS HIS EFFORTS TO FINANCE A SUPERMARKET ON THE SOUTH SIDE AN INNERCITY NEIGHBORHOOD DOTTED WITH ABANDONED BUILDINGS WHEN YOU'RE TALKING ABOUT MONEY RACE IS A DIVIDING LINE HE SAYS AS EVIDENCE HE CITES A FEDERAL RESERVE FINDING THAT THE HOMEMORTGAGE REJECTION RATE FOR BLACK APPLICANTS WAS ABOUT TWICE THAT FOR WHITES IN 1991 TO FIND A MORE SYMPATHETIC LENDER MR THOMAS MS LAMBERT AND OTHERS ARE TRYING TO START SOUTHSIDE BANK A COMMUNITY INSTITUTION THAT WILL FOCUS ON FINANCING DEVELOPMENT IN A RACIALLY MIXED SECTION THAT'S HOME TO 80000 OF THE CITY'S 200000 PEOPLE THE IDEA IS SIMPLE RECYCLE DEPOSITS FROM THE AREA INTO LOANS TO SUPPORT INVESTMENT THERE IN THEORY IT OUGHT TO WORK RESIDENTS AND BUSINESSES HAD BANK DEPOSITS OF 508 MILLION IN 1989 BUT INSTITUTIONS HOLDING THE DEPOSITS RETURNED ONLY ABOUT 5 MILLION TO THE AREA IN LOANS ACCORDING TO RESEARCH BY OFFICIALS OF THE PLANNED BANK SOUTHSIDE BANK IS JUST THE TYPE OF INNERCITY CAPITALISM THAT PRESIDENTELECT CLINTON WANTS TO ENCOURAGE BUT THE STRUGGLE TO LAUNCH IT SHOWS HOW TOUGH IT'S GOING TO BE TO REALIZE HIS PLEDGE TO ESTABLISH A NETWORK OF 100 COMMUNITYDEVELOPMENT BANKS THAT MAKE MONEY WHILE NURTURING SMALL BUSINESSES AND REVITALIZING NEIGHBORHOODS FOR A GRASSROOTS GROUP OF PEOPLE TO PUT TOGETHER A FINANCIAL INSTITUTION IS A HUGE UNDERTAKING SAYS FRANK LYNN PRESIDENT OF THE COALITION FOR COMMUNITY REINVESTMENT A PRIVATE GROUP THAT IS FIGHTING TO MAKE CREDIT AVAILABLE IN THE INNER CITY ONLY FOUR COMMUNITYDEVELOPMENT BANKS EXIST NOW AND IT REMAINS AN OPEN QUESTION WHETHER SOUTHSIDE WILL BECOME THE FIFTH INVESTORS ARE WARY MAINSTREAM BANKS HAVE WITHHELD SUPPORT AND MAY HAVE DISCOURAGED SOME BACKERS OF THE VENTURE SOUTHSIDE'S OFFICIALS MAINTAIN MR CLINTON'S ADVISERS ARE DRAFTING A PLAN FOR AN 850 MILLION FUND TO HELP FINANCE COMMUNITYDEVELOPMENT INSTITUTIONS INCLUDING BANKS CREDIT UNIONS OF WHICH THERE ARE ABOUT 300 NOW AND REVOLVING LOAN FUNDS 42 NATIONWIDE TO AID DEPRESSED AREAS THE MONEY WOULD PROVIDE TECHNICAL ASSISTANCE TO COMMUNITY GROUPS IN LAUNCHING LENDING OPERATIONS AND WOULD HELP CAPITALIZE LENDERS ONCE THEY GOT GOING EVERY DOLLAR OF FEDERAL CAPITAL WOULD HAVE TO BE MATCHED BY 2 OF PRIVATE FUNDS THE MONEY WOULD BE DISTRIBUTED OVER FIVE YEARS THROUGH A NEW NATIONAL COMMUNITYDEVELOPMENT TRUST WHICH WOULD BE SUSTAINED BY REPAYMENTS OF LOANS MADE TO HELP GET NEW LENDERS OFF THE GROUND A CLINTON ADVISER SAYS THE FUND WOULD PROBABLY BE OVERSEEN FROM THE WHITE HOUSE'S NEW NATIONAL ECONOMIC COUNCIL BUT ADMINISTERED BY THE TREASURY DEPARTMENT OR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT STUDIES SHOWING CREDIT PROBLEMS IN INNER CITIES AND HIGHER HOMEMORTGAGE REJECTION RATES FOR BLACKS AND HISPANICS HAVE MADE COMMUNITY DEVELOPMENT AN INCREASINGLY PRESSING POLITICAL AND ECONOMIC ISSUE REPUBLICANS ON THE HOUSE BANKING COMMITTEE ARE STUDYING WAYS TO USE THE COMMUNITY REINVESTMENT ACT WHICH REQUIRES BANKS TO LEND WHEREVER THEY TAKE DEPOSITS TO INCREASE INNERCITY AND RURAL LENDING AND THE SENATE BANKING COMMITTEE PLANS TO BEGIN HEARINGS ON THE TOPIC EARLY NEXT MONTH REPRESENTATIVES OF SOUTHSIDE BANK HAVE BEEN ASKED TO TESTIFY ONE PROBLEM THE NEW BANK IS FACING IS THE SOUTHSIDE NEIGHBORHOOD ITSELF IT'S AN AREA IN TRANSITION BUT IT'S HARD TO KNOW IN WHAT DIRECTION NEW BUSINESSES AND RENOVATED HOUSES DOT THE AREA WHICH HAS BEEN A FOCAL POINT OF URBAN RENEWAL EFFORTS INCLUDING BUILDING A SHOPPING CENTER AND USING TAX ABATEMENTS TO ATTRACT EMPLOYERS BUT IN THE PAST FEW YEARS DRUGS AND CRIME HAVE BECOME PROBLEMS CRACK HAS SET US BACK SAYS CHRIS DAVENPORT THE CITY'S ACTING COMMUNITYDEVELOPMENT DIRECTOR FROM THE BEGINNING REGULATORS AND POTENTIAL INVESTORS HAVE BEEN CONFUSED ABOUT WHETHER SOUTHSIDE BANK WANTED TO BE A DEVELOPMENT AGENCY THAT MIGHT MAKE A PROFIT OR A PROFITMAKING BANK WITH A FOCUS ON DEVELOPMENT THE COMMUNITY ACTIVISTS WHO STARTED DREAMING ABOUT SOUTHSIDE BANK SIX YEARS AGO QUICKLY LEARNED THAT THEY HAD TO BE BANKERS FIRST AND SOCIAL REFORMERS SECOND IN EARLY DISCUSSIONS ABOUT GETTING FEDERAL DEPOSIT INSURANCE AND A STATE CHARTER THE MICHIGAN FINANCIAL INSTITUTIONS BUREAU CAME DOWN ON US WITH BOTH FEET TO REMIND US THAT WE'RE NOT A SOCIALSERVICE AGENCY SAYS THE REV GEORGE HEARTWELL ONE OF SOUTHSIDE'S FOUNDERS AND DIRECTORS THEY LOOKED AROUND THE TABLE AND SAW THAT WE WEREN'T BANKERS IT TOOK SOUTHSIDE ABOUT A YEAR TO FIND A PRESIDENT THE FEDERAL DEPOSIT INSURANCE CORP AND STATE OFFICIALS WOULD ACCEPT LAST YEAR THEY RECRUITED STEVEN LOPEZ WHO HAS 20 YEARS OF COMMERCIAL BANKING EXPERIENCE IN THE NEW YORK AREA MR LOPEZ WHO IS BLACK MOVES EASILY THROUGH THE NEIGHBORHOOD ON A VISIT TO EL MATADOR TORTILLAS FACTORY HE SPEAKS IN SPANISH WITH MIGUEL NAVARRO THE OWNER AND A SOUTHSIDE BOARD MEMBER IN PROMOTING THE BANK MR LOPEZ AND HIS BOARD STRESS THAT MAINSTREAM BANKS ARE BETTER AT COLLECTING DEPOSITS FROM THE INNER CITY THAN AT MAKING LOANS THERE STANDING ON THE MADISON AVENUE SITE WHERE THE SOUTHSIDE BANK PLANS TO OPEN MR LOPEZ POINTS ACROSS THE STREET TO A BRANCH OF OLD KENT BANK & TRUST CO THE CITY'S LARGEST BANK THE OFFICE WILL TAKE DEPOSITS AND CASH CHECKS BUT MAKE NO LOANS AN OLD KENT OFFICIAL SAYS THAT THE BRANCH STOPPED MAKING LOANS AFTER REDUCING ITS STAFF FOLLOWING A ROBBERY SEVERAL YEARS AGO IN WHICH A TELLER WAS KILLED BUSINESSES THAT ARE BLACK AND HISPANICOWNED DEPOSIT THEIR MONEY IN A BANK AND IT'S LOANED SOMEPLACE ELSE MR HEARTWELL SAYS FOR LOCAL BUSINESSES TO TAKE CONTROL OF THEIR ECONOMIC DESTINY BY OWNING A BANK AND KEEPING THE CAPITAL IN THE COMMUNITY IS AN ENORMOUS STEP TOWARD THE ECONOMIC EMPOWERMENT OF A COMMUNITY THAT HAS BEEN OUTSIDE THE LOOP EMPOWERMENT DOESN'T COME EASILY THOUGH MR LOPEZ AND HIS BOARD HAVE SPENT MOST OF THE LAST YEAR TRYING TO RAISE THE 3 MILLION IN CAPITAL THEY NEED TO OPEN SO FAR THEY HAVE ONLY ABOUT 1 MILLION RAISED FROM STOCK SALES TO INDIVIDUALS AND CHURCHES WITH SUPPORT FROM CITY AND STATE AGENCIES STATE OFFICIALS SAY SOUTHSIDE IS THE FIRST BANK IN MEMORY THAT HASN'T BEEN ABLE TO RAISE ITS CAPITAL IN THE ONEYEAR STARTUP PERIOD AS A RESULT THE BANK MUST REAPPLY TO CONTINUE ITS EFFORTS CLEARLY THERE IS RESISTANCE TO INVESTING IN SUCH A VENTURE SAYS MR LYNN OF THE COALITION FOR COMMUNITY REINVESTMENT MR THOMAS THE BANK'S CHAIRMAN CONCEDES THAT INITIALLY THE BANK DIDN'T PRESENT ITSELF WELL AT FIRST WE HAD A HARD TIME SELLING TO THE COMMUNITY BECAUSE THEY THOUGHT IT WAS A SOCIAL PROGRAM RATHER THAN A BUSINESS VENTURE AND BECAUSE BANKS HAD HISTORICALLY STEERED CLEAR OF THE AREA PEOPLE WEREN'T SURE WHAT TO MAKE OF THIS ONE THE STEADY DRUMBEAT OF BANK FAILURES AROUND THE COUNTRY ALSO RAISES ANXIETIES ABOUT INVESTING IN A STARTUP BANK SOUTHSIDE WON LIMITED BACKING FROM A LOCAL SUPERMARKET CHAIN AND THE LOCALLY BASED STEELCASE FOUNDATION BUT FOUND OTHER BUSINESSES CAUTIOUS BACKERS HAD EXPECTED MORE OF AN OUTPOURING FOR THIS BOOTSTRAP EFFORT GRAND RAPIDS IS A CONSERVATIVE CITY KNOWN FOR ITS DUTCH HERITAGE ITS OFFICEFURNITURE INDUSTRY AND ITS MOST FAMOUS NATIVE SON FORMER PRESIDENT FORD THIS IS A REPUBLICAN STRONGHOLD MR LOPEZ SAYS I THOUGHT THEY WOULD BE RECEPTIVE TO THIS TYPE OF SELFHELP PROJECT ONE PROBLEM IS THE MAINSTREAM BANKS THOUGH THEY'VE GENERATED RELATIVELY FEW LOANS TO THE MARGINAL INNERCITY AREAS THEY SEE SOUTHSIDE BANK AS A COMPETITOR AND HAVE REJECTED INVITATIONS TO INVEST IN IT AND THEY MAY HAVE COOLED OTHERS TO THE IDEA MR LOPEZ CLAIMS THAT OLD KENT BANK TOLD A LOCAL ORDER OF DOMINICAN NUNS THAT THE NEW BANK WASN'T NECESSARY IN AN EFFORT TO DISCOURAGE THEM FROM PLEDGING TO PURCHASE 50000 IN STOCK IN IT THE NUNS AGREED TO BUY THE STOCK ANYWAY HE SAYS SISTER BARBARA HANSEN THE GRAND RAPIDS DOMINICANS' COUNSELOR FOR FINANCE CONFIRMS THAT OLD KENT PERSONNEL EXPRESSED THEIR VIEW THAT THERE WASN'T A NEED FOR THAT BANK BUT SHE SAYS THAT OLD KENT OFFICIALS DIDN'T OFFER ANY ADVICE ON WHETHER THEY SHOULD INVEST IN IT RICHARD ARASMITH OLD KENT'S SENIOR VICE PRESIDENT COMMUNITY RELATIONS SAYS THAT THE DOMINICANS WANTED TO DISCUSS THE BANKING ENVIRONMENT IN THE AREA BUT THAT HE SAID NOTHING TO DISSUADE THEM FROM BUYING STOCK IN THE NEW BANK HOWEVER MR ARASMITH MAKES IT CLEAR THAT HE DOESN'T THINK A NEW BANK IS NECESSARY HE NOTES THAT OLD KENT AND THREE OTHER BANKS HAVE SIGNED AGREEMENTS WITH THE COALITION FOR COMMUNITY REINVESTMENT PLEDGING TO INCREASE THEIR INNERCITY LENDING OLD KENT HAS AGREED TO INCREASE MORTGAGE LENDING IN THE SOUTHSIDE AREA BY 10 MILLION A THREE OR FOURFOLD INCREASE ACCORDING TO COMMUNITY ACTIVISTS AND TO TAKE VARIOUS STEPS TO MAKE IT EASIER FOR INNERCITY BORROWERS TO GET LOANS IN ADDITION OLD KENT AND NBD BANCORP HAVE HELPED FINANCE THE CITY'S URBAN RENEWAL EFFORTS NOW THAT THE MAJOR BANKS ARE MAKING A COMMITMENT TO LENDING ON THE SOUTH SIDE THEY DON'T WANT TO GIVE UP THE NEW BUSINESS NOR DO THEY WANT TO GIVE UP THE DEPOSITS THEY'VE BEEN DRAWING I DON'T THINK THAT THERE IS A NICHE LEFT UNFILLED THERE MR ARASMITH SAYS SO TO A GREAT EXTENT THE GRAND RAPIDS DEBATE IS OVER WHETHER TO PROMOTE DEVELOPMENT BY PUSHING EXISTING BANKS TO LEND MORE IN INNERCITY AREAS OR TO ESTABLISH SPECIAL COMMUNITY BANKS THE AMERICAN BANKERS ASSOCIATION CONTENDS THAT EXISTING BANKS UNDER PRESSURE FROM LOCAL GROUPS AND THE COMMUNITY REINVESTMENT ACT ARE WORKING HARDER TO MEET INNERCITY BANK NEEDS AND THAT THE GOVERNMENT SHOULDN'T GET INVOLVED IN ENCOURAGING OR SUBSIDIZING A NEW CLASS OF BANKS IT'S CRITICAL THAT NEW PROGRAMS FOR COMMUNITY DEVELOPMENT BANKS BUILD ON THE CURRENT SYSTEM AND NOT ATTEMPT TO REINVENT A NEW SYSTEM FROM SCRATCH THE TRADE ASSOCIATION SAYS IN A POSITION PAPER THE DEVELOPMENT BANK THAT WON MR CLINTON OVER TO THE IDEA IS SOUTH SHORE BANK IN CHICAGO WHICH HELPED TURN AROUND A DECLINING NEIGHBORHOOD BY FINANCING A REVITALIZATION PLAN MR CLINTON HAS NOTED THAT THE BANK HAS OPERATED WITHOUT GOVERNMENT INVOLVEMENT LIKE THE CHICAGO BANK WHICH OPERATES AS PART OF A HOLDING COMPANY SOUTHSIDE BANK HOPES TO SET UP REALESTATE INVESTMENT AND VENTURECAPITAL AFFILIATES TO HELP IT MEET A FULL RANGE OF BUSINESS AND HOUSING NEEDS IN ITS NEIGHBORHOOD RAISING THE MONEY IT NEEDS TO OPEN WON'T BE THE END OF SOUTHSIDE'S CHALLENGES THE VERY PROBLEMS OF CRIME POVERTY AND LACK OF BUSINESS INFRASTRUCTURE THAT MAKE ESTABLISHED BANKS RELUCTANT TO LEND IN THE INNER CITY WILL POSE CHALLENGES TO SOUTHSIDE AS WELL IN ADDITION MR LOPEZ STRESSES THAT THE NEW BANK WILL AIM FOR PROFITS FIRST AND GOOD WORKS SECOND THIS IS A PROFITMAKING VENTURE HE SAYS ONCE WE BECOME OPERATIONAL WE WILL BE CAREFUL NOT TO PUT MORE THAN 10 OF OUR ASSETS INTO ANY ONE NICHE EVEN IF IT NEVER GETS OFF THE GROUND SOUTHSIDE HAS APPARENTLY HAD A POSITIVE EFFECT SPURRING EXISTING BANKS TO PAY MORE ATTENTION TO THE NEIGHBORHOOD FOR THE FIRST TIME BANKS ARE CALLING AND TELLING ME WHAT SERVICES ARE AVAILABLE SAYS MS LAMBERT WE CERTAINLY FEEL THAT WE'RE MAKING STRIDES IN THE INNER CITY SAYS JOANNA HAINER ASSISTANT VICE PRESIDENT COMMUNITY RELATIONS AT MICHIGAN NATIONAL BANK IN GRAND RAPIDS OUR COMMERCIALLOAN OFFICERS ARE MORE AWARE OF WHAT THE NEEDS ARE BUT MOST OF THE BUSINESSES GETTING NEW OVERTURES FROM BANKS ARE ALREADY SUCCESSFUL SUCH AS FRANK THOMAS'S SOUTHSIDE SUPERMARKET WHICH HAS SALES OF ABOUT 7 MILLION A YEAR AND MIKE NAVARRO'S TORTILLA FACTORY WHEN SOUTHSIDE BANK IS ONLINE PREDICTS MR THOMAS YOU'RE GOING TO SEE A LOT OF COMPETITION FROM THE MAJORITY BANKING SYSTEM THE CHANGE MAY NOT COME SOON ENOUGH FOR PEOPLE STRUGGLING TO BUILD SOUTHSIDE BUSINESSES NOW JOHN AND RUBY JIMMERSON SOLD THEIR HOUSE AND PUT THEIR SAVINGS INTO A NEW BUSINESS THE PERSONALLY YOU LTD BAKERY WHICH OPENED ALMOST A YEAR AGO THE SUMMER WEDDINGCAKE BUSINESS WAS GOOD AND THANKSGIVING AND CHRISTMAS ALSO WERE STRONG SEASONS WE NEED TO UPGRADE OUR PLACE AND HIRE SOME HELP TO BE ABLE TO BID ON CORPORATE ACCOUNTS MR JIMMERSON SAYS THEY ALSO WANT TO BUY AN ADJOINING VACANT PARCEL AND TURN IT INTO A PARKING LOT BUT THEY CAN'T GET A LOAN FROM A BANK EVEN WHEN THEY HAD MONEY DEPOSITED IN OLD KENT BANK THEY COULDN'T GET A LOAN THERE MR JIMMERSON SAID WHEN HE WAS SETTING UP THE BAKERY THE BANK SAID IT COULDN'T LEND BECAUSE HE WAS UNEMPLOYED WHEN THE BAKERY OPENED HE HAD A JOB BUT THEN THEY SAID WE HAD TO GET A TRACK RECORD BEFORE THEY WOULD LEND MR JIMMERSON SAYS HE WAS UPSET WHEN THE BANK SENT A YOUNG INEXPERIENCED LOAN OFFICER TO LOOK AT HIS SITE AND REVIEW HIS PLANS HE'D NEVER BEEN IN THIS AREA BEFORE AND SEEMED UNCOMFORTABLE MR JIMMERSON SAYS BUT HE'S SURE THAT IF THE SOUTHSIDE BANK WERE UP AND RUNNING IT WOULD GIVE HIM MORE SERIOUS CONSIDERATION THERE'S NO DOUBT IN MY MIND MR JIMMERSON SAYS 9301190080 930119 BUSINESS WORLD INTEL'S SUCCESS HASN'T TAKEN ITS MIND OFF WASHINGTON BY TIM W FERGUSON AS SALES AND STOCK PRICES OF SEMICONDUCTOR MAKERS SHOOT UP AMERICANS MAY BE TEMPTED TO ASK ISN'T THIS THE INDUSTRY WE WERE TOLD WAS BEREFT IN THE WORLD MARKETPLACE FROM NATIONAL NEGLECT IT'S BOOM TIME FOR PERSONAL COMPUTERS THE RESULT IS ANOTHER STAGE IN THE SEEMINGLY FEASTORFAMINE WORLD OF ELECTRONICS WHERE NOT ONLY DO FORTUNES FLUCTUATE OUT OF SYNC WITH THE GENERAL ECONOMY BUT FIRMS IN ONE SECTOR PC COMPONENTS WAX WHILE THOSE IN ANOTHER SEE IBM WANE THE LAYMAN MIGHT GET BEWILDERED ARE POLITICIANS AND TRADE OFFICIALS BY CONTRAST SMART ENOUGH TO FIGURE IT OUT AND INTERVENE ACCORDINGLY THAT WAS THE IMPLICATION OF SILICON VALLEY'S ELECTORAL ACTIVISM OF 1992 A PUSH FOR BILL CLINTON THAT FOLLOWED YEARS OF CLAMORING FOR HELP FROM A GRUDGING GOP IN THE WHITE HOUSE A LEADING INDUSTRY PETITIONER IS CRAIG BARRETT NEWLY PROMOTED TO CHIEF OPERATING OFFICER AT INTEL CORP MR BARRETT WHO LEFT A STANFORD UNIVERSITY PROFESSORSHIP NEARLY 20 YEARS AGO FOR INTEL IS NO 2 TO HIGHPROFILE CEO ANDREW GROVE THESE DAYS INTEL SEEKS A FAVORABLE GLOBAL TRADE ACCORD AND AN INVESTMENT TAX CREDIT BUT MR BARRETT DEFENDS THE EXPANSIVE AGENDA OF THE 1980S TAKE SEMATECH THE PUBLICPRIVATE CONSORTIUM BEGUN FIVE YEARS AGO TO IMPROVE THE BASIC MANUFACTURING TECHNOLOGY BASIC IS RELATIVE YOU UNDERSTAND WE'RE TALKING ABOUT LITHOGRAPHICS PLASMA ETCHING ION IMPLANTATION FEDERAL TAXPAYERS AND ABOUT A DOZEN US PRODUCERS BOTH HAVE PUT IN ABOUT 500 MILLION I PROBABLY CANNOT THINK OF 500 MILLION THE GOVERNMENT HAS SPENT TO CREATE MORE INFRASTRUCTURE IN THE US TO CREATE BASICALLY MORE CAPABILITY AND TO MAKE A SEGMENT OF ITS INDUSTRY MORE COMPETITIVE MAINTAINS MR BARRETT A SEMATECH BOARD MEMBER THE PROJECT LEAVES OFF AT THE DESIGN STAGE WHERE INTEL FOR ONE HAS EXCELLED AT CREATING AND THEN MARKETING CHIPS INTEL ARGUES THAT NO MATTER HOW GOOD ITS BRAINS ARE IT COULDN'T SUCCEED WITHOUT STATEOFTHEART EQUIPMENT AND RELIABLE SUPPLIERS AT HAND AT THE TIME SEMATECH WAS FORMED THE INDUSTRY WAS PRETTY MUCH ON ITS KNEES FINANCIALLY IT WAS COMING OUT OF ITS 198586 RECESSION MR BARRETT RECALLS WHATEVER ROLE THAT MEDICINE HAD IN THE PATIENT'S RECOVERY 100 MILLION ANNUALLY FROM WASHINGTON SEEMS A BYTE IN THE BUCKET NOW WITH GIANTS INTEL MOTOROLA AND TEXAS INSTRUMENTS ALONE INVESTING BILLIONS ON THEIR OWN A SEMICONDUCTOR PACT WITH JAPAN IS A VESTIGE OF THOSE TIMES TOO IT'S HAD AN IMPACT ON THE BOTTOM LINE MR BARRETT SAYS US PRODUCERS BOOSTED THEIR SHARE IN JAPAN TO 16 FROM LESS THAN 11 AND INTEL HAS TRACKED THAT RISE SALES THERE ACCOUNT FOR ABOUT 10 OF ITS REVENUE MR BARRETT SAYS THAT MARKET IS NOW SIMPLY A FLATOUT COMPETITION ON PRICE SO YOUR SUCCESS IS DRIVEN BY YOUR MANUFACTURING POSITION JAPAN'S CHIP MAKERS LONG PRESUMED TO BENEFIT FROM STATE INVOLVEMENT HAVE MANIFEST DIFFICULTIES WHAT YOU'VE SEEN IN THE LAST COUPLE OF YEARS ESPECIALLY IN '92 WHICH HAS HURT THE JAPANESE HAS BEEN THAT THE KOREANS HAVE BEEN DOING TO THE JAPANESE PRECISELY WHAT THE JAPANESE DID TO THE US THEY'RE BUYING MARKET SHARE IN THE COMMODITY SEMICONDUCTOR DYNAMIC RAM BUSINESS AND THEY'RE GIVING THE JAPANESE COMPANIES FITS FACED WITH THEIR OWN CAPITAL SQUEEZE JAPAN'S PRODUCERS MUST JUSTIFY ANY YEN FOR INVESTMENT TO CORPORATE FINANCIAL OFFICERS WILL THIS LEAD TO A NEW SEMATECH THERE MR BARRETT LAUGHS THEY'LL NEED MORE THAN 100 MILLION A YEAR THEY'LL ALSO NEED TO ADAPT TO AN OPEN SYSTEMS ENVIRONMENT LED BY SPECIALIZERS MAKING PARTS THAT FIT A STANDARD MODEL PC MR BARRETT IS QUICK TO SAY THE JAPANESE REMAIN FORMIDABLE BUT CLEARLY THE WORLD LOOKS DIFFERENT NOW HAS THE US GOVERNMENT MUCH TO DO WITH THAT EVEN A SILICON VALLEY STALWART SUCH AS ED ZSCHAU FORMERLY ITS CONGRESSMAN HAS DOUBTS IT'S HARD TO LINK SOMETHING LIKE SEMATECH HE ACKNOWLEDGES TO THE RESURGENCE OF THE US DISKDRIVE INDUSTRY WHERE HE NOW COMPETES AS CEO OF A SMALL INNOVATOR CENSTOR HIS OUTFIT RELIES ON ALLIANCES IN JAPAN TO RAISE CAPITAL ANOTHER IDEA FOR INVOLVING WASHINGTON A FEW YEARS BACK WAS US MEMORIES A VENTURE AIMED AT PRODUCING BASIC DRAMS MAYBE MALAYSIA COULD ASPIRE TO THAT TODAY BUT MR BARRETT SAYS OF THE STILLBORN IDEA I THINK YOU SHOULD RECOGNIZE THAT AT THE TIME US MEMORIES WAS PROPOSED THE JAPANESE HAD ESSENTIALLY ALL OF THE DYNAMIC RAM MARKET MANY IN THE US FELT THAT THEY WERE ISOLATED AND TOTALLY DEPENDENT ON JAPANESE SUPPLIERS IT WAS NOT AN ATTEMPT TO CAPTURE BACK THE LION'S SHARE OF THE MARKET JUST ENOUGH FOR LEVERAGE IN THE VOLATILE HIGHTECH ENVIRONMENT HOWEVER DOMINANCE IS FLEETING WHAT ABOUT INTEL'S COMMANDING POSITION WITH ITS TOPDRAWER 486 MICROPROCESSOR FOR PCS SOON TO BE FOLLOWED BY THE PENTIUM AND EVEN MORE POWERFUL CHIPS THE FACT IS THE MARKET IS PRETTY WELL DIVIDED UP WITH DIFFERENT COUNTRIES FOCUSING ON DIFFERENT PARTS WE'RE SOMEWHAT INTERDEPENDENT THE REAL ISSUE IS NOT SO MUCH WHETHER I BUY MY DRAMS FROM YOU AND YOU BUY YOUR MICROPROCESSOR FROM ME IT'S REALLY WHETHER I BUY MY DRAMS MY MICROPROCESSORS MY EPROMS MY MICROCONTROLLERS AND EVERYTHING ELSE FROM YOU AND I DON'T MAKE ANYTHING I THINK THAT WAS THE RATIONALE THAT LED TO THE FORMATION OF SEMATECH AND SOME OF THESE OTHER EFFORTS INTEL'S POLITICAL CONCERN LATELY HAS BEEN THE GATT TRADE TALKS WHERE IT WANTS AMONG MORE LAUDABLE AIMS TO TIGHTEN LIMITS ON DUMPING OF PRODUCTS THAT OUGHT TO RAISE THE HACKLES OF FREEMARKETERS HAVING GOVERNMENTS SUBSIDIZE SEMATECHS HERE AND THERE PROBABLY DOESN'T AFFECT THE GRAND OUTCOME MUCH BUT TRADE POLICY THAT MUCKS WITH THE FLOW OF GOODS TO UPHOLD SOME PROPER PRICE THIS IS TROUBLE ESPECIALLY IN AN INDUSTRY NURSED ON THE IDEA THAT YOU REALLY CAN MAKE UP FOR NEGATIVE MARGINS BY INCREASING VOLUME MR BARRETT REJECTS THE NOTION THAT COST IS ANY LONGER A MURKY CONCEPT IN HIGHTECH I THINK THE SYSTEM MAY BE A LITTLE MORE MATURE THAN YOU GIVE IT CREDIT FOR WE ALL MAKE THINGS IN PRETTY MUCH THE SAME WAY WE ALL USE PRETTY MUCH THE SAME EQUIPMENT WE HAVE PRETTY ESTABLISHED FACTORIES IF YOU COUNT THE RAW MATERIALS COMING IN ONE END AND COUNT THE PRODUCT COMING OUT THE OTHER END YOU CAN DO A REASONABLY GOOD JOB OF FIGURING OUT WHAT THE COSTS ARE IT'S NOT LIKE BALL BEARINGS BUT IT'S NOT THAT FAR OFF EITHER SILICON VALLEY EXPECTED SYMPATHY FROM THE CLINTON ADMINISTRATION BUT FELT JILTED WHEN LAWYERLOBBYISTS WERE NAMED COMMERCE SECRETARY AND TRADE REPRESENTATIVE MR BARRETT IS STILL RANKLED SAYING I CAN'T FOR THE LIFE OF ME UNDERSTAND WHY HE CHOSE THOSE TWO POSITIONS TO MAKE POLITICAL AWARDS HOW CAN THE PRESIDENTELECT MAKE AMENDS HE COULD HAVE NOT DONE IT TO START WITH HE BETTER GET AHOLD OF THAT SITUATION OR HE'S GOING TO LOSE AN EXTREMELY LARGE AMOUNT OF CREDIBILITY VERY RAPIDLY 9301190078 930119 THE NAME HILLARY IS ON EVERYONE'S LIPS AND SPELLS TROUBLE MRS CLINTON DRAWS ATTENTION TO APPELLATION SOME OF US THOUGHT WAS OURS ALONE BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THIS IS A STORY NO NANCY OR BARBARA COULD APPRECIATE SHORTLY THE NATION'S FIRST LADY WILL BE A HILLARY AND SHE ISN'T THE ONLY HILLARY OR HILARY IT CAN BE SPELLED WITH ONE L OR TWO WHO IS GOING THROUGH A RADICAL TRANSITION THE WHOLE THING IS WEIRD WE HILLARYS AREN'T ACCUSTOMED TO OTHER PEOPLE HAVING OUR NAME LET ALONE FAMOUS PEOPLE WHEN OUR CHILDHOOD FRIENDS PEDALED AROUND ON BIKES WITH TOY LICENSE PLATES READING JENNIFER OR JOHN OR JANE WE HAD TO MAKE DO WITH BARE FENDERS YOU AREN'T LIKELY TO SEE ANY HILLARY STUFF IN AIRPORT GIFT SHOPS UNLESS THEY ARE VERY AU COURANT WE ARE USED TO BEING UNIQUELY HILARY CERTAINLY THE ONLY ONE IN THE ROOM SO WHEN SOMEONE SAYS HILLARY WE JUMP SUDDENLY ALL THAT HAS CHANGED YOU'RE RIDING UP THE ESCALATOR AND YOU HEAR PEOPLE SAYING I HATE HILLARY'S HAIR' SAYS HILLARY DURGIN A WASHINGTON JOURNALIST YOU'RE CONSTANTLY SWINGING YOUR HEAD AROUND HILARY JOHNSTONBARTON OF SAN FRANCISCO WAS IN SANTA BARBARA THE WEEKEND HILLARY CLINTON AND HER HUSBAND JUST PLAIN BILL WERE THERE FOR THEIR POSTELECTION CALIFORNIA THANKSGIVING THE NAME WAS ALL AROUND SHE RECALLS WITH AMAZEMENT SHE WOULD PRICK UP HER EARS SHE SAYS BUT THE CONVERSATION WASN'T ABOUT ME THE NEXT FIRST LADY GOT THE NAME IN OCTOBER 1947 BECAUSE HER PARENTS THOUGHT IT SOUNDED EXOTIC AND UNUSUAL A SPOKESWOMAN FOR MRS CLINTON SAYS THE NAME HAPPENED TO ME 15 YEARS LATER FOR SIMILAR REASONS COULD IT BE THAT HILLARY OR HILARY NOW IS ACTUALLY GOING TO BE POPULAR I THINK IT MIGHT WELL BECOME MORE COMMON SAYS LINDA ROSENKRANTZ COAUTHOR OF THE BOOK BEYOND JENNIFER AND JASON AN ENLIGHTENED GUIDE TO BABY NAMING SHE THINKS PEOPLE WILL BECOME MORE AWARE OF IT A LOT OF PEOPLE HAVEN'T KNOWN A HILLARY IN THEIR LIFE NOW THEY WILL OTHERS ON THE OTHER HAND ARE DELIGHTED SIXYEAROLD HILLARY TATRO HAS NEVER KNOWN ANY OTHER HILLARY SHE IS TICKLED TO HAVE A FAMOUS INSTANT NAMESAKE I WANTED CLINTON TO WIN BECAUSE HIS WIFE IS NAMED HILLARY THE READSBORO VT FIRSTGRADER SAYS I THINK SHE'S PRETTY AND SMART HILARY NORTON EVEN HAS HER OWN BILL MS NORTON WHO WORKS FOR A LOS ANGELES CITY COUNCILMAN IS ENGAGED TO BILL CHANDLER PRESS SECRETARY TO NEW DEMOCRATIC SEN DIANNE FEINSTEIN OF CALIFORNIA MR CHANDLER WHO NEVER MET A HILARY BEFORE HE MET HIS FIANCEE IN 1991 HAS A CLOSE FRIEND IN THE CLINTON WHITE HOUSE AND HOPES THE COUPLE CAN GET A PICTURE TAKEN WITH THE MORE FAMOUS BILL AND HILLARY HILARY WHICH IS OF LATIN ORIGIN MEANS CHEERFUL BILL CLINTON KNEW THE NAME BEFORE HE EVER MET HIS FUTURE BRIDE BECAUSE THE SPRING TERM AT OXFORD IS KNOWN AS HILARY TERM IT IS NAMED FOR HILARY BISHOP OF POTIER AND THE PATRON SAINT AGAINST SNAKE BITES HIS FEAST DAY IS JAN 13 ABOUT THE TIME CLASSES BEGIN FOR THE SPRING TERM OTHER NOTABLE HILARYS ARE FEW AND FAR BETWEEN AND PERHAPS DON'T COUNT ONE IS THE FRENCH VERSION OF HILARY HILAIRE BELLOC A POET ESSAYIST AND ONE LER THE OTHER IS SIR EDMUND HILLARY THE FIRST HUMAN TO SCALE MT EVEREST AND A TWO LLER IT IS A SERIOUS ISSUE THIS SPELLING BUSINESS WITH ALL DUE RESPECT TO THE NEW FIRST LADY SHE SPELLS HER NAME WRONG AND THAT IS GOING TO DAMN THE REST OF US TO THE EXTRA L FOR THE REST OF OUR LIVES WHO NEEDS THE CLUTTER HILARY PENNINGTON ONE L AND PROUD OF IT HEADS JOBS FOR THE FUTURE A NONPROFIT ORGANIZATION IN BOSTON SHE WAS NAMED TO THE PRESIDENTELECT'S TRANSITION TEAM TO ADVISE ON WORKFORCE AND TRAINING ISSUES SHE FILLED OUT ALL THE REQUISITE FORMS SPELLING HER NAME CORRECTLY AS SHE IS WONT TO DO HER ID HOWEVER CAME BACK SPELLED THE TWOL WAY I'M SURE OUR NAMES ARE GOING TO BE SPELLED WRONG FROM NOW ON SIGHS MS PENNINGTON SPEAKING FOR ALL OF US MS PENNINGTON IS NO HILLARY BUT SHE KNOWS MRS CLINTON SHE IS A FRIEND OF HERS THE TWO HAVE JOKED ABOUT THE NAME TOGETHER SHE SAYS THE NAME COULD SPELL TROUBLE POLITICALLY HOWEVER IF MRS CLINTON FAILS TO CATCH ON WITH THE AMERICAN PEOPLE THERE ARE HARBINGERS OF PROBLEMS DOWN THE LINE WHEN HILLARY DURGIN WAS STANDING IN LINE TO VOTE NOV 3 A FRIEND CALLED HER BY NAME AND A BYSTANDER STARTED MAKING COMMENTS OH THAT NAME IS FAMOUS HE SAID EVERYONE IS GOING TO BE NAMING THEIR CHILDREN HILLARY THEN SOMEONE ELSE CHIMED IN GIVE IT A YEAR THAT NAME WILL BE INFAMOUS AND EVERYONE WILL REGRET HAVING NAMED THEIR CHILDREN HILLARY HILARYS HAVE MUCH AT STAKE AND A LOT IN COMMON BUT THEY AREN'T A SORORITY HILARY RING IS A REPUBLICAN AND A MAN HE NEVERTHELESS EXPECTS HILLARY CLINTON TO DO WELL BY THE NAME I ALWAYS HAD A GOOD IMPRESSION OF HER AND THOUGHT PEOPLE WERE TAKING CHEAP SHOTS AT HER BUT MR RING HAS HAD HIS OWN BAD EXPERIENCE OF A POLITICAL SORT WITH THE NAME IN 1983 HE RAN FOR ALBANY CITY COMPTROLLER THE HANDLERS WORKING WITH ME ON THE CAMPAIGN SAID YOU CAN'T HAVE A NAME LIKE HILARY HE RECALLS IT DIDN'T HAVE THE RIGHT RING TO IT THEY SUGGESTED HE GO BY HIS MIDDLE NAME DAVID I TRIED THAT A COUPLE OF TIMES BUT PEOPLE WOULD SAY HEY DAVE' AND I DIDN'T KNOW WHO THEY WERE TALKING ABOUT HE INSISTED ON HILARY HE LOST THIS YEAR BECAUSE BILL CLINTON AND AL GORE WON THEIR ELECTION THERE IS ONLY ONE OTHER GROUP GOING THROUGH GREATER NAMERECOGNITION SHOCK THAN WE HILARYS BUT HOW MANY TIPPERS COULD THERE POSSIBLY BE 9301190077 930119 LETTERS TO THE EDITOR TO GROW OLD WITH DIGNITY THE HORROR STORIES YOU DESCRIBE IN YOUR DEC 3 AND 4 PAGEONE ARTICLES GRIM PROSPECT OLDER PEOPLE WILL DO ANYTHING TO AVOID LIFE IN NURSING HOME HOME OF ONE'S OWN SEARCH FOR ALTERNATIVES TO THE NURSING HOME YIELDS ASSISTED LIVING' WILL CONTINUE AS LONG AS OUR SOCIETY ENTRUSTS NURSINGHOME CARE TO ENTREPRENEURS TODAY 80 OF NURSING HOMES ARE RUN BY PROFITMAKING ENTERPRISES THAT WEIGH PATIENTS' NEEDS AGAINST PROFIT MARGINS GOOD CARE HAPPENS ONLY WHEN SOMEONE DOES IN FACT CARE AND NOT BECAUSE HE IS PAID TO WHEN EMPLOYEES ARE ACCOUNTABLE TO A VOLUNTEER BOARD OF DIRECTORS WHEN PEOPLE FROM THE COMMUNITY SPEND TIME WITH THE AGED THERE ARE FEWER TEMPTATIONS FOR PROFITDRIVEN COMPROMISES AT THIS NOTFORPROFIT FACILITY AND WE ARE BY NO MEANS UNIQUE A VERY VISIBLE BOARD OF DIRECTORS OVERSEES AND IS RESPONSIBLE FOR THE QUALITY OF LIFE AT OUR HOME THIS CRITICAL COMMUNITY RELATIONSHIP MISSING FROM NURSING HOMES RUN AS BUSINESSES ENABLES A PLETHORA OF INTERGENERATIONAL PROGRAMS ENCOURAGES VOLUNTEER SERVICES AND IN GENERAL REMOVES THE BARRIERS BETWEEN AN INSTITUTION AND ITS SURROUNDING COMMUNITY THIS IS THE SAFEGUARD THAT ENSURES A HIGH QUALITY OF CARE AND REMOVES THE ISOLATION THAT MARKED THE ANECDOTES IN YOUR ARTICLES CERTAINLY THE GOVERNMENT MUST ENFORCE ITS NEW MINIMUM STANDARDS BUT LAWS AND INSPECTIONS CANNOT ENSURE A COMFORTABLE AND DIGNIFIED OLD AGE OR EVEN ADEQUATE SERVICES AS LONG AS WE DENY RESPONSIBILITY FOR CARE OF OUR PARENTS AND RELY ON GOVERNMENT BUREAUCRATS OR WORSE PEOPLE WHOSE MOTIVATIONS ARE PROFIT NOR IS THE ASSISTEDLIVING PROGRAM A PANACEA ASSISTEDLIVING PROJECTS FREQUENTLY ARE RUN FOR PROFIT AND AS LONG AS THERE IS NO COMMUNITY INVOLVEMENT IN THE CARE THAT IS PROVIDED ASSISTED LIVING WILL SIMPLY BECOME AN INAPPROPRIATE ALBEIT LESS EXPENSIVE PLACEMENT FOR PEOPLE WHOSE NEEDS ARE BETTER MET IN A SKILLED NURSING ENVIRONMENT INCENTIVES TO GET RICH FROM CARING FOR THE AGED MUST BE ELIMINATED IN OUR SOCIETY OR WE WILL FACE BIGGER SCANDALS AFFECTING THE MILLIONS OF AGED WHO WILL BE NEEDING CARE AND ASSISTANCE IN THE YEARS TO COME PUBLIC BELIEFS AND ATTITUDES ABOUT NURSINGHOME CARE IS CERTAINLY AN IMPORTANT TOPIC DESPITE THE FACT THAT THERE ARE NO NATIONAL STUDIES OR SURVEYS TO BUTTRESS MANY OF THE CLAIMS YOU MADE BUT SENSATIONALISM HINGED IN LARGE PART ON REFERENCES TO SUICIDE EXPERTS ARE JUST BEGINNING TO MEASURE THE EMOTIONAL TOLL INDEED THE DESPERATION MANY FEEL RESEARCH SUGGESTS THAT FEARING NURSING HOMES IS A MAJOR CAUSE OF SUICIDE YOU WENT ON TO CITE A SINGLE PUBLISHED STUDY AND QUOTE THAT STUDY'S AUTHOR A GERIATRIC PSYCHIATRIST IN SUPPORT OF EXTRAVAGANT CONCLUSIONS THIS STUDY IS SCIENTIFICALLY FLAWED IN SEVERAL WAYS ONE FLAW IS THAT THE AUTHOR ASSUMED THAT THE REASONS FOR SUICIDE PROVIDED BY THE VICTIM OR REMEMBERED BY NEXT OF KIN CAN BE ACCEPTED AT FACE VALUE ANOTHER FLAW IS THAT THE INVESTIGATORS ASSUMED THE INFORMANTS WERE NOT INFLUENCED BY THE FACT THAT THE INVESTIGATORS PROMPTED FEAR OF NURSING HOMES AMONG OTHER POSSIBLE REASONS FOR SUICIDE IN THEIR INTERVIEW TWO LARGER MORE SYSTEMATIC PSYCHOLOGICALAUTOPSY STUDIES OF ELDERLY SUICIDES IN ROCHESTER AND CHICAGO HAVE BEEN REPORTED BUT WERE OVERLOOKED BY YOU IN THESE STUDIES FEAR OF NURSINGHOME PLACEMENT WAS NOT A COMMON COMPLAINT OF ELDERLY SUICIDE VICTIMS THE OVERWHELMING MAJORITY OF ELDERLY DEATHS BY SUICIDE IMPLICATE A USUALLY UNRECOGNIZED PSYCHIATRIC ILLNESS AS A KEY CONTRIBUTING FACTOR CONTRARY TO PUBLIC STEREOTYPES MOST ELDERLY SUICIDE VICTIMS ARE IN RELATIVELY GOOD PHYSICAL HEALTH WHEN THEY DIE ARE LIVING WITH SPOUSES OR OTHER FAMILY MEMBERS ARE NOT FINANCIALLY STRAPPED AND DO NOT EXPERIENCE UNUSUAL DEGREES OF LIFE STRESS IN THE LAST SIX MONTHS OF THEIR LIVES YOUR ARTICLES HIGHLIGHTED PUBLIC PERCEPTIONS OF NURSINGHOME CARE AND EMERGING ALTERNATIVES TO NURSINGHOME CARE I APPLAUD THE ATTENTION GIVEN TO THESE IMPORTANT ISSUES BUT THERE WAS NO NEED TO RESORT TO A SENSATIONALISTIC CLAIM THAT FEAR OF NURSINGHOME PLACEMENT IS THE EXPLANATION FOR MOST ELDERLY DEATHS BY SUICIDE AND FOR A RISING SUICIDE RATE AMONG THE ELDERLY IN FACT THE RATE HAS NOT BEEN RISING DURING THE PAST FEW YEARS NURSING HOMES CONTINUE TO PLAY AN IMPORTANT ROLE IN OUR SOCIETY FOR A NUMBER OF REASONS THEY PROVIDE REHABILITATIVE CARE THAT ENABLES PEOPLE TO RETURN HOME AFTER A SERIOUS ILLNESS OR ACCIDENT THEY CARE FOR INDIVIDUALS WITH SPECIAL NEEDS SUCH AS ELDERS IN THE ADVANCED STAGES OF ALZHEIMER'S DISEASE THE HEADINJURED AND THOSE WHO MUST DEPEND ON VENTILATORS TO LIVE THEY ALSO CARE FOR THE CHRONICALLY ILL ELDERLY WHO HAVE EXHAUSTED COMMUNITYBASED OPTIONS SUCH AS ASSISTED LIVING AND NEED THE 24HOUR NURSING AND PERSONAL CARE THAT LICENSED NURSING FACILITIES PROVIDE NURSINGHOME PHOBIA IS NOTHING NEW IN OUR YOUTHORIENTED SOCIETY IT LONG HAS BEEN UNACCEPTABLE TO GROW OLD AND INFIRM LIKE THE ANOREXIC TEENAGER STARVING HERSELF TO DEATH TO CONFORM TO SOCIETAL EXPECTATIONS ELDERS ARE NOW BEING COMPELLED TO CONTEMPLATE SUICIDE TO AVOID THE DEPENDENCIES OF OLD AGE WE BELIEVE THAT LIFE IS WORTH LIVING EVEN IN A NURSING HOME WHILE WE OBVIOUSLY HAVE A LONG WAY TO GO IN GAINING THE TRUST OF THE AMERICAN PUBLIC WE ARE COMMITTED TO PROVIDING CARE FOR OUR NATION'S FRAILEST ELDERS WITH COMPASSION DIGNITY AND RESPECT REHABILITATION SERVICES IN THE NURSINGFACILITY SETTING HAVE DOUBLED DURING THE PAST TWO YEARS MANY FACILITIES ARE SEEKING TO EXPAND THEIR SUBACUTE AND ENHANCED MEDICAL REHABILITATION PROGRAMS NURSING HOMES ARE NOT PLACES WHERE PEOPLE GO TO DIE NURSING FACILITY REFORM INCORPORATED INTO THE OMNIBUS BUDGET RECONCILIATION ACT OF 1987 COUPLED WITH A LIBERALIZATION OF MEDICARE INTERPRETATION FOR SKILLED NURSINGFACILITY MEDICAL REVIEW HAS HAD A DRAMATIC IMPACT IN ENCOURAGING FACILITIES TO INCREASE PATIENT DISCHARGES TWO OF EVERY FIVE RESIDENTS ARE DISCHARGED WITHIN THE FIRST 90 DAYS THERE IS A LARGE GROWING POPULATION THAT NEEDS DAILY MEDICAL OVERSIGHT AND PROTECTIVE SHELTER NURSING FACILITIES PROVIDE SUCH CARE IMPAIRMENT IN ACTIVITIES OF DAILY LIVING IS AGERELATED THE 75YEARSANDOLDER POPULATION HAS EXPERIENCED A TENFOLD INCREASE SINCE 1900 AND THE AGE GROUP 85PLUS HAS GROWN BY ABOUT 17 TIMES WHILE THE SIZE OF THE 60ANDOVER POPULATION HAS INCREASED BY SEVEN TIMES THE RATE OF EXTREME IMPAIRMENT CORRELATES WITH PLACEMENT IN A NURSING FACILITY LONGTERM CARE NEEDS A BALANCED CONTINUUM OF SERVICE DELIVERY FOR THOSE INDIVIDUALS WITH MULTIPLE IMPAIRMENTS OF DAILY LIVING THE FACILITYBASED SETTING IS THE LEAST RESTRICTIVE MOST APPROPRIATE ENVIRONMENT THE NOTION THAT ALTERNATIVE LIVING ARRANGEMENTS CAN ARREST DEMAND IS WISHFUL THINKING BOARDANDCARE SETTINGS SINGLE ROOM OCCUPANCIES AND RELATED APPROACHES TO SHELTER POLICY DON'T WORK IF WE HAVE LEARNED ANYTHING FROM THE DISASTROUS MENTALHEALTH POLICIES OF THE PAST TWO DECADES AND OF THE KERRMILLS PROGRAM THAT PREDATED MEDICAID SUPPORT FOR LONGTERM CARE IT IS THAT SURVIVAL OF THE FITTEST IS NOT GOOD SOCIAL POLICY 9301190076 930119 INTERNATIONAL CHINA BULLDOZING AHEAD ON DAM DESPITE OPPOSITION THREE GORGES PLAN MINIMIZES IMPORTS TO REDUCE ENVIRONMENTALISTS' CLOUT BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL YICHANG CHINA DESPITE STRONG OPPOSITION FROM INTERNATIONAL ENVIRONMENTAL GROUPS CHINA INTENDS TO GO IT ALONE IN BUILDING THE HUGE THREE GORGES DAM THE DAM WHICH WOULD BE THE WORLD'S LARGEST WHEN COMPLETED WILL PROVIDE MUCH NEEDED FLOOD CONTROL ON CHINA'S MIGHTY YANGTZE RIVER AND ADD CONSIDERABLE GENERATING CAPACITY TO CHINA'S CHRONICALLY SHORT SUPPLY OF ELECTRICITY BUT IT WOULD ALSO CAUSE EXTENSIVE ENVIRONMENTAL HARM CREATE A LAKE 375 MILES LONG THAT WOULD INUNDATE SEVERAL SCENIC GORGES AND DISPLACE MORE THAN 11 MILLION PEOPLE IN TOWNS AND VILLAGES ALONG THE RIVER IN MIDNOVEMBER WHILE PREMIER LI PENG WAS VISITING THE DAM SITE 25 MILES NORTH OF THIS YANGTZE RIVER PORT CITY CONSTRUCTION WORKERS BEGAN BUILDING ROADS HOUSING AND UTILITY HOOKUPS IN YICHANG TO SERVE AS THE DAM'S CONSTRUCTION HEADQUARTERS AT THE SAME TIME ACCOUNTANTS WERE PUTTING THE FINISHING TOUCHES ON A FINANCIAL STRATEGY TO BUILD THE GIANT PROJECT WITH A MINIMAL USE OF FOREIGN EQUIPMENT AND WITHOUT THE ASSISTANCE OF OVERSEAS FINANCING WE KNOW THAT ENVIRONMENTALISTS ARE PUTTING PRESSURE ON THE WORLD BANK THE ASIAN DEVELOPMENT BANK AND FOREIGN GOVERNMENTS SAYS YU SHIZHONG DEPUTY DIRECTOR OF THE PROJECT'S TECHNICAL ADVISORY COMMISSION SO IN OUR COST STRUCTURE WE HAVE ACCOUNTED FOR THE MINIMUM AMOUNT OF IMPORTS WE CAN GET BY WITH IF FOREIGN LOANS ARE BLOCKED WE ARE PREPARED TO USE OUR FOREIGN EXCHANGE RESERVES MR YU AND OTHERS INVOLVED IN THE THREE GORGES PROJECT WHICH CHINESE ENGINEERS ESTIMATE COULD COST AS MUCH AS 30 BILLION SAY ACTUAL CONSTRUCTION OF THE DAM WILL BEGIN THIS SUMMER IN MARCH THE NATIONAL PEOPLE'S CONGRESS CHINA'S RUBBERSTAMP LEGISLATURE IS SCHEDULED TO APPROVE FORMATION OF THE THREE GORGES CONSTRUCTION COORDINATION COMMISSION WHICH IS EXPECTED TO APPROVE FINAL BLUEPRINTS BY JUNE IT WILL BE HEADED BY PREMIER LI A SOVIETTRAINED HYDROLOGICAL ENGINEER WHO IS THE DAM'S CHIEF ADVOCATE THESE ACTIONS COME AS OVERSEAS ENVIRONMENTAL GROUPS STEP UP ACTIVITIES TO BLOCK THE DAM ON DEC 30 DEFENDERS OF WILDLIFE A US ENVIRONMENTAL GROUP ANNOUNCED THAT IT PLANS TO SUE THE US BUREAU OF RECLAMATION WHICH HAS ASSISTED IN THREE GORGES PLANNING SINCE 1944 WHEN THE BUREAU DID SITE SURVEYS FOR CHIANG KAISHEK'S NATIONALIST GOVERNMENT THE GROUP WANTS TO STOP BUREAU ASSISTANCE FOR THE DAM BY OVERTURNING A 1986 REAGAN ADMINISTRATION RULING THE RULING EXEMPTED FOREIGN PROJECTS FROM A LAW REQUIRING AN ENVIRONMENTAL IMPACT STUDY OF ANY BUREAUINVOLVED PROJECTS THAT MIGHT THREATEN ENDANGERED SPECIES BILL SNAPE AN ATTORNEY FOR THE WASHINGTONBASED GROUP SAID ITS GOAL IS TO BLOCK FOREIGN TECHNICAL HELP AND FINANCING BY CURTAILING US INVOLVEMENT IN THREE GORGES WE HAVE LEARNED THAT MANY CHINESE BELIEVE THAT SINCE THE BUREAU OF RECLAMATION IS ASSISTING THEN THE US IS SUPPORTING THE PROJECT HE SAYS A 1990 STUDY ESTIMATED THE DAM'S COST AT 57 BILLION YUAN THEN THE EQUIVALENT OF ABOUT 12 BILLION BUT ENGINEERS WORKING ON THE PROJECT EXPECTED TO TAKE 18 YEARS TO COMPLETE ESTIMATE THE PRICE COULD BE AS MUCH AS 170 BILLION YUAN ABOUT 30 BILLION AT CURRENT EXCHANGE RATES WHEN INFLATION AND FINANCING COSTS ARE INCLUDED THREE GORGES PLANNERS NOW GET ABOUT 17 MILLION A YEAR FROM THE POWER REVENUE OF THE GEZHOUBA DAM IN YICHANG IT WAS BUILT FROM 1970 TO 1988 AS A DRESS REHEARSAL FOR THREE GORGES AN ADDITIONAL 240 MILLION A YEAR IS EXPECTED FROM NATIONWIDE ASSESSMENTS ON ELECTRIC FEES AND COAL SALES THE REST OF THE MONEY TO BUILD THREE GORGES WOULD COME FROM GOVERNMENT EXPENDITURES BONDS AND DOMESTIC BANK LOANS TO AVOID OVERSEAS INTERFERENCE ENGINEERS SAY PLANNERS HAVE WHITTLED DOWN THE PROJECT PLANS SO THAT ONLY 12 BILLION IN FOREIGN EQUIPMENT WILL BE NEEDED FOR THE PROJECT THIS WOULD INCLUDE CONSTRUCTION MACHINERY POWER TRANSMISSION EQUIPMENT AND 26 GENERATORS OF 680 MEGAWATTS APIECE DISCUSSIONS ARE UNDER WAY TO REDUCE THIS FURTHER BY IMPORTING ONLY FOUR 680MEGAWATT GENERATORS AND THEN COPYING AND BUILDING THE REST IN CHINA CHINA NOW CAN'T PRODUCE GENERATORS LARGER THAN 320 MEGAWATTS THREE GORGES ENGINEERS SAY PLANNERS HAVE ALREADY GIVEN UP ON GETTING WORLD BANK LOANS BUT THERE IS STILL HOPE THAT FOREIGN COMPANIES THAT WIN EQUIPMENT BIDS CAN PRESSURE THEIR GOVERNMENTS TO PROVIDE CONCESSIONARY EXPORT LOANS WE MAY HAVE TROUBLE GETTING FOREIGN LOANS BUT WE WON'T HAVE ANY TROUBLE BUYING FOREIGN EQUIPMENT SAYS MR YU THE DANES THE GERMANS THE FRENCH AND THE AMERICANS ARE ALL TRYING TO SELL US EQUIPMENT WHETHER OR NOT TO BUILD THE THREE GORGES DAM HAS BEEN A CONTROVERSIAL QUESTION ALMOST SINCE THE PROJECT WAS ENVISIONED IN 1919 BY SUN YATSEN FATHER OF THE 1911 REVOLUTION THAT ENDED IMPERIAL RULE THE 600FOOTTALL DAM WOULD CREATE A RESERVOIR THAT WOULD ENGULF MUCH OF QUTANGXIA WUXIA AND XILINGXIA THREE DEEP GORGES ON THE YANGTZE THAT FOR HUNDREDS OF YEARS HAVE BEEN CELEBRATED BY POETS AND PAINTERS AS ONE OF CHINA'S MOST SCENIC AREAS SINCE THE LATE 1950S CHINA'S COMMUNIST LEADERS HAVE APPROVED THE PROJECT A HALFDOZEN TIMES AND THEN DELAYED CONSTRUCTION BECAUSE OF POLITICAL UPHEAVALS OR ECONOMIC DIFFICULTIES DURING THE 1980S WHILE FEASIBILITY STUDIES WERE UNDER WAY THE THREE GORGES PROJECT WAS OPENLY OPPOSED BY A WIDE RANGE OF CHINESE INTELLECTUALS IN APRIL 1989 THE GOVERNMENT RESPONDED TO THIS CRITICISM BY ANNOUNCING THAT A DECISION ON BUILDING THE DAM WOULD BE DELAYED FOR FIVE YEARS BUT TWO MONTHS LATER SOLDIERS OPENED FIRE ON DEMONSTRATORS IN BEIJING AND ALL OPPOSITION INCLUDING CRITICISM OF THIS DAM WAS STIFLED A YEAR LATER IN JUNE 1990 MR LI WHO HAS BEEN IN CHARGE OF THE THREE GORGES PROJECT SINCE 1984 HELD A MEETING TO REVIVE PLANNING FOR THE DAM IN MARCH THE NATIONAL PEOPLE'S CONGRESS APPROVED CONSTRUCTION OF THE DAM THOUGH A THIRD OF THE DELEGATES VOTED NO OR ABSTAINED THIS WAS A REMARKABLE LEVEL OF OPPOSITION BECAUSE VOTES BY THE LEGISLATURE ARE USUALLY UNANIMOUS THREE GORGES DAM DESIGNERS SAY ENVIRONMENTALISTS SHOULD SUPPORT THE DAM BECAUSE THE 84 BILLION KILOWATTHOURS OF ELECTRICITY IT WILL GENERATE ANNUALLY IS THE EQUIVALENT OF BURNING 40 MILLION TONS OF COAL THEY ALSO ARGUE THAT THE DAM IS NECESSARY TO PREVENT THE PERIODIC YANGTZE RIVER FLOODS THAT HAVE KILLED TENS OF THOUSANDS OF PEOPLE AT A TIME CHINESE AND FOREIGN CRITICS RETORT THAT SIMILAR BENEFITS AND FEWER ENVIRONMENTAL PROBLEMS WOULD RESULT FROM A SERIES OF SMALLER DAMS ON YANGTZE TRIBUTARIES 9301190075 930119 THE RIO GRANDE IS MAINSTREAM FOR TODAY'S US PALATES MEXICO'S CORONA BREW REGAINS THE CACHET IT LOST IN THE LATE '80S BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY CORONA BEER WHICH HAD GONE FLAT IS BUBBLING BACK YOU REMEMBER CORONA CLEARGLASS BOTTLE SILKSCREENED LABEL NEARCULT STATUS AMONG US TRENDIES IN THE LATE 1980S EXPLOSIVE US SALES THAT TRIPLED IN ONE YEAR THEN IT FELL FROM FASHION IN 1988 UNFOUNDED RUMORS SPREAD THAT CORONA CONTAINED URINE ALTHOUGH CORONA SLAPPED A LAWSUIT AGAINST THE SOURCE THE BREWER NEVER FULLY CONTROLLED THE DAMAGE TO SALES BUT IN THE US LAST YEAR CORONA RECLAIMED ITS NO 2 IMPORT POSITION CAPITALIZING ON ITS FOREIGN CACHET AND ESCAPIST FANTASIES THIS YEAR CORONA WILL UNVEIL A NEW SLOGAN CHANGE YOUR WHOLE LATITUDE LAST YEAR EVEN THOUGH OVERALL US SUDS SALES WERE STAGNANT CORONA ESTIMATES THAT IT SOLD 15 MILLION CASES NORTH OF THE BORDER UP 13 FROM 1991 AT ITS 1987 PEAK WHEN THE CORONA PHENOMENON STUNNED YANKEE BREWERS CORONA SOLD ABOUT 22 MILLION CASES IN THE US IT'S AN UNUSUAL STORY WHEN A BRAND THAT HAS BEEN SLIDING STARTS BOUNCING BACK SAYS JERRY STEINMAN EDITOR OF BEER MARKETER'S INSIGHTS INDUSTRY ANALYSTS ATTRIBUTE THE RISE TO PRICE STABILIZATION AT A TIME WHEN OTHER IMPORTS WERE BOOSTING PRICES FOLLOWING A FEDERAL EXCISETAX INCREASE A US SIXPACK OF CORONA EXTRA FOR EXAMPLE RETAILS FOR ABOUT 549 TO 599 COMPARED WITH SOME COMPETING IMPORTS THAT CAN COST AS MUCH AS 699 THE LIGHTTASTING MEXICAN BEER IS ALSO GAINING FOOTHOLDS IN EUROPE JAPAN AND DOWN UNDER IN THE FIRST NINE MONTHS LAST YEAR OVERALL EXPORTS OF CORONA BEER PRODUCED BY CLOSELY HELD GRUPO MODELO SA GREW 20 FROM A YEAR EARLIER IN 56 COUNTRIES AN UNPRECEDENTED NUMBER FOR CORONA WE ARE NOW A WORLDWIDE KNOWN COMPANY SAYS A MODELO VICE PRESIDENT VALENTIN DIEZ SITTING IN AN OFFICE WITH GERMAN BEER STEINS DISPLAYED LIKE ANIMALHEAD TROPHIES CORONA IS THE NO 1 NONUS IMPORTED BEER IN CANADA AND IT'S THE LEADING FOREIGN BREW IN AUSTRALIA AND NEW ZEALAND IN FADCRAZED JAPAN IT'S THE NO 2 IMPORT MR DIEZ SAYS MODELO PLANS TO GO PUBLIC ON THE MEXICAN STOCK EXCHANGE THIS YEAR THAT WILL POSSIBLY BE FOLLOWED BY A PUBLIC OFFERING IN THE US HE ADDS ANALYSTS SPECULATE THAT MODELO WANTS CASH FOR ITS FOREIGN EXPANSIONS IN SOME COUNTRIES ITS NICHE AS THE EXOTIC MEXICAN BEER IS THREATENED BY ANOTHER MEXICAN BRAND CALLED SOL ALSO BOTTLED IN CLEAR GLASS AND MADE BY MODELO'S AGGRESSIVE CHIEF COMPETITOR FOMENTO ECONOMICO MEXICANO SA FIGHTING FOR POSITION ANY POSITION IN FOREIGN MARKETS TOOK SOME BRAWLING FOR MODELO THE WORLD'S 10THLARGEST BREWERY WITH ANNUAL SALES OF ABOUT 15 BILLION CORONA'S EXPERIENCE PROVIDES VALUABLE LESSONS IN GLOBAL TRADE GERMANY FOR EXAMPLE WANTED CONTENT LISTINGS ON FRONT LABELS NOT BACK LABELS A FRENCHMAN ALREADY HAD THE CORONA NAME TRADEMARKED SIMILAR SQUABBLES ERUPTED OVER THE NAME IN SPAIN GUATEMALA COLOMBIA VENEZUELA AND HONDURAS THESE TYPES OF BARRIERS OCCUR WHEN WE ARE ABOUT TO ENTER AND THEY WANT TO PUT ON THE BRAKES MR DIEZ SAYS THESE ARE OUR DAILY STRUGGLES AND WE'RE USED TO IT IN GERMANY CORONA CHANGED ITS LABELS IN FRANCE IT SELLS THE BREW THOUGH A LEGAL BATTLE CONTINUES IN SPAIN IT CHANGED ITS NAME TO CORONITA BECAUSE A SPANISH WINE HAD A LEGITIMATE NAME CLAIM BUT IN LATIN AMERICA IT EXPORTS ON IN MOST OF THE COUNTRIES THERE A TRADEMARK WAS REGISTERED BUT NO PRODUCT PRODUCED MR DIEZ SAYS CORONA'S BIGGEST EXPORT DIFFICULTY CAME LAST YEAR WHEN SWITZERLAND AUSTRIA AND GERMANY CHARGED THAT THE LEVEL OF THE BEER'S NITROSAMINES SUSPECTED CARCINOGENS EXCEEDED HEALTH STANDARDS THE LEVEL WAS REDUCED SAYS THE COMPANY BUT SOME ANALYSTS NOTE THAT SIMILAR CHARGES WEREN'T RAISED IN THE UNITED KINGDOM OR ITALY WHERE CORONA'S EUROPEAN BEER SALES ARE STRONGEST SAYS LONDON ANALYST RICHARD HALL OF ZENITH INTERNATIONAL LTD MARKETING CONSULTANTS CORONA HAS BECOME A BRAND WITH CULT STATUS IN ENGLAND THROUGHOUT MUCH OF THE WORLD CORONA PROMOTES ITSELF AS THE PREMIUM BEACHPARTY BEVERAGE JAPANESE ADVERTISING FOR EXAMPLE FEATURES A YOUNG BIKINICLAD ASIAN WOMAN ENJOYING THE BREW ON THE SANDS MEXICAN TELEVISION COMMERCIALS SHOW UNDERWATER SCENES IN THE CRISPEST OF COLORS WITH A CORONA BOTTLE SPLASHING UP LIKE THE DOLPHINS THAT PRECEDED IT CORONA'S NEXT BIG MARKET MODELO HOPES IT WILL BE RUSSIA OR HUNGARY WHERE EXPORTS BEGIN THIS YEAR BUT ITS BIGGEST GROWTH OPPORTUNITY MAY WELL BE MEXICO ITSELF THOUGH CORONA IS THE TOPSELLING BREW IN MEXICO THERE'S PLENTY OF ROOM FOR GROWTH IN THIS NATION OF 85 MILLION PEOPLE MEXICANS ON A PERCAPITA BASIS DRINK ONLY ABOUT 45 LITERS ANNUALLY AMERICANS DRINK DOUBLE THAT AMOUNT GERMANS MORE THAN THREE TIMES AS MUCH SEE RELATED ARTICLE MARKETSCAN YANQUIS ARE FINDING WIDERANGING USES FOR SALSA AND PICANTE WSJ JAN 19 1993 9301190074 930119 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN LABORMANAGEMENT TEAMS POP UP IN MOST AREAS OF THE WORKPLACE KERRMCGEE IN OKLAHOMA CITY USES TEAMS FOR SAFETY PROCESS CONTROL SHIPPING AND FREIGHT PROBLEMSOLVING TEAMS AT A CHEMICAL UNIT PRODUCED 1992 SAVINGS OF MORE THAN 55 MILLION THE COMPANY SAYS TUBOSCOPE VETCO INTERNATIONAL A HOUSTON OILFIELD SERVICES CONCERN SAYS TEAMS HAVE IMPROVED SAFETY BY 10 TO 15 IMPROVEMENTS AT HASTINGS MANUFACTURING A MICHIGAN AUTOPARTS MAKER FUEL WORKER BONUSES BUT ROADBLOCKS REMAIN A RECENT NATIONAL LABOR RELATIONS BOARD RULING HAS LAWYERS FRETTING OVER THE TEAMS' FUTURE THOUGH INCOMING LABOR SECRETARY ROBERT REICH VOWS TO KEEP THEM LEGAL UNIONS CAN BE PRICKLY TOO AT UTILITY SCECORP ROSEMEAD CALIF OFFICIALS WALK A TIGHTROPE BETWEEN EMPOWERING WORKERS AND RESPECTING THE FUNCTION OF UNIONS LABORMANAGEMENT TEAMS LET THE SHOP FOREMAN BE MORE CREATIVE INSTEAD OF BEING A WATCHDOG OVER THE WORKERS IT IS MORE LIKE BEING A FACILITATOR SAYS DAVID ZIMMER PRESIDENT OF CORE INDUSTRIES BLOOMFIELD MICH CLINTON'S INAUGURATION SPURS A HIRING BOOMLET IN THE NATION'S CAPITAL HOTELS AND CATERERS IN WASHINGTON STAFF UP FOR INAUGURAL WEEK PULLING IN PARTTIMERS AND TEMPS HOTEL AND RESTAURANT EMPLOYEES UNION LOCAL 25 CALLS IN REINFORCEMENTS FROM NEW YORK ATLANTIC CITY AND A WEST VIRGINIA RESORT THE CARPENTER'S LOCAL GETS A CALL FOR DOZENS OF EMPLOYEES TO BUI LD BLEACHERS AND REVIEWING STANDS AT THE WHITE HOUSE AND CAPITOL MOST HAD BEEN UNEMPLOYED IN THE SOFT WASHINGTON ECONOMY THE POSTINAUGURAL OUTLOOK IS PICKING UP TOO OFFICIALS AT EMPLOYMENT AGENCIES SAY OLSTEN'S BRANCH MANAGER STUART CHANDLER SEES A LOT MORE MEETINGS AND SEMINARS AS THE DEMOCRATS COME INTO OFFICE THE REPUBLICANS ALSO LOOK FOR HELP CONSERVATIVE ORGANIZATIONS WHO YOU WOULD THINK WOULD NEED LESS STAFF BECAUSE THEY'RE OUT OF POWER ARE LOOKING FOR MORE PEOPLE SAYS MANPOWER'S CHERYL LYONS JAPAN BASHING ISN'T ENOUGH TO NULLIFY A UNION ELECTION THE NLRB RULES THE UNITED AUTO WORKERS WON A TIGHT VOTE IN 1991 CERTIFYING THE UNION TO BARGAIN FOR EMPLOYEES AT KI USA CORP A KENTUCKY AUTOPARTS MAKER BUT JUST DAYS BEFORE THE ELECTION A UNION OFFICIAL PASSED OUT A MAGAZINE CLIPPING OF A LETTER WRITTEN BY AN OSAKA BUSINESSMAN WITH NO TIES TO KI I AM APPALLED AT THE TYPICAL LAZY UNEDUCATED AMERICAN WORKER I HAVE HAD TO DEAL WITH IN YOUR COUNTRY THE LETTER SAID THE COMPANY WITH A JAPANESE PARENT SOUGHT TO OVERTURN THE VOTE COUNT CLAIMING THE LETTER BIASED THE VOTE BY 21 THE NLRB BACKED THE UNION CONTENDING THAT ARGUMENTS OF BIAS MAY BE A PERMISSIBLE TOPIC IN AN ELECTION THE COMPANY NOW IS EXPECTED NOT TO RECOGNIZE THE UNION AND BE TAKEN TO FEDERAL COURT FOR UNFAIR LABOR PRACTICES THE DISSENTING NLRB MEMBER JOHN RAUDABAUGH SAID NEGATIVE STEREOTYPING BY THE UNION HAS NO PLACE IN AN ELECTION JUST ANOTHER WORKING GUY LABOR SECRETARYDESIGNATE REICH TOOK HOME 539000 LAST YEAR EXCLUDING HIS WIFE'S SALARY AND INTEREST INCOME HIS FINANCIAL DISCLOSURE SHOWS PART OF THE INCOME SPEECHES AT 14000 EACH INCLUDING ONE TO LAFFERCANTO ASSOCIATES RUN BY SUPPLYSIDE GURU ARTHUR LAFFER LOCATION LOCATION STATES WITH UNINSURED PEOPLE VARIED SHARPLY IN 1991 THE EMPLOYEE BENEFIT RESEARCH INSTITUTE SAYS ELEVEN STATES LED BY TEXAS NEW MEXICO LOUISIANA AND FLORIDA HAD 20 OR MORE WITHOUT HEALTH INSURANCE THE DISTRICT OF COLUMBIA HAD 308 FOUR STATES CONNECTICUT PENNSYLVANIA WISCONSIN AND HAWAII HAD LESS THAN 10 WANT A JOB FLIP ON THE TUBE STARTING THIS SPRING CNBC LAUNCHES THE CAREER TELEVISION NETWORK DESIGNED TO TAKE ON NEWSPAPER CLASSIFIEDS AND EXECUTIVE RECRUITERS ONAIR PERSONALITIES WILL DISPLAY AND TALK ABOUT JOB OPENINGS FROM ABOUT 10 EMPLOYERS AN HOUR SIMILAR PROGRAMS HAVE BEEN OFFERED LOCALLY FLEXIBLE WORK ARRANGEMENTS CONTINUE TO FIND A HOME AT COMPANIES AT METROPOLITAN LIFE 90 OF THE 28000 ADMINISTRATIVE EMPLOYEES USE THE COMPANY'S FLEXIBLE HOURS PROGRAM STARTING BETWEEN 730 AM AND 10 AM AMERICAN EXPRESS'S TRAVEL GROUP WHICH FOUGHT ALTERNATIVE PROGRAMS UNTIL 1990 NOW OFFERS JOB SHARING SHORTER WORKWEEKS COMPRESSED WORKWEEKS AND TELECOMMUTING A THIRD OF FEDERAL EXPRESS'S TREASURY AND CREDIT DEPARTMENTS WORK FROM HOME AVON PRODUCTS LOOKS TO EXPAND THE ALTERNATIVES AS A RECRUITING TOOL TO ATTRACT THE VERY BEST PEOPLE IN THE 1990S YOU'RE GOING TO HAVE TO DO THAT SAYS MARCIA WORTHING EMPLOYEES DON'T ABUSE THE PRIVILEGE SHE SAYS THEY GIVE YOU MORE IN TURN STILL MOSTLY CLERICALS USE AMERICAN EXPRESS'S PROGRAM PROFESSIONALS FRET THAT IT MIGHT APPEAR THAT THEIR JOB ISN'T ALL THAT CRITICAL IF THEY WORKED AT HOME SAYS AN OFFICIAL THE CHECKOFF WE WERE SCOOPED THE TABLOID WEEKLY WORLD NEWS REPORTS THAT CLINTON WENT TO THE MOVIE HOFFA WITH THE LATE TEAMSTERS LEADER HOFFA IS QUOTED AS CALLING THE MOVIE PRETTY DAMN CLOSE TO THE TRUTH ELVIS LIVES SAYS CONSULTANT MARY WOODELL WHO DEFINES IT AS EXECUTIVE LEVEL VICIOUS INFIGHTING SYNDROME NO WONDER HE IS THE BOSS THE PENNSYLVANIA TEAMSTERS NEWSLETTER DUBS BRUCE SPRINGSTEEN A SCAB FOR CROSSING A PICKET LINE FOR A TACOMA WASH CONCERT 9301190073 930119 WASTE MANAGEMENT SEEKS AN OVERHAUL OF CORPORATE NAME WMX TECHNOLOGIES WILL BE NEW MONIKER LIFTING STAFF OUT OF GARBAGE AIDE SAYS BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL WASTE MANAGEMENT INC'S FOUNDER AND CHAIRMAN DEAN L BUNTROCK HAS LONG PLEADED DON'T CALL MY COMPANY A TRASH HAULER OR A DUMP OPERATOR NOW MR BUNTROCK WANTS TO WIPE THE WORD WASTE OUT OF THE CORPORATE NAME THE COMPANY THE WORLD'S LARGEST TRASH HAULER AND DUMP OPERATOR SAID IT PLANS TO CHANGE ITS NAME TO WMX TECHNOLOGIES INC A COMBINATION OF ITS STOCK MARKET SYMBOL AND THE FACT THAT ITS 65000 EMPLOYEES DO MORE THAN HEAVE TRASH INTO A HOLE IN THE GROUND THE OLD NAME MR BUNTROCK SAID IN AN INTERVIEW JUST DIDN'T FIT ANYMORE WASTE MANAGEMENT BASED IN OAK BROOK ILL HAS BROADED FROM ITS GARBAGEHANDLING BUSINESS TO BECOME A TOP ENGINEERING AND CONSTRUCTION AND ENVIRONMENTAL CONSULTING COMPANY IN ADDITION TO HANDLING HAZARDOUS WASTE AND OPERATING TRASHTOENERGY INCINERATORS WE DIDN'T WANT THE CONNOTATION OF MANAGING WASTES TO UNDERMINE THE COMPANY'S GLOBAL MARKETING EFFORTS MR BUNTROCK SAID THE NEW NAME HAS AN ADDED BENEFIT IT MATCHES THE VANITY LICENSE PLATES ON MR BUNTROCK'S CAR STOCKHOLDERS WILL BE ASKED TO APPROVE THE NAME AT THE COMPANY'S MAY 14 ANNUAL MEETING MR BUNTROCK HAS LONG FELT THAT WASTE MANAGEMENT HASN'T RECEIVED ENOUGH RESPECT BECAUSE IT'S IN THE TRASH BUSINESS MOREOVER THERE'VE BEEN PRICEFIXING CONVICTIONS AND NUMEROUS ENVIRONMENTAL VIOLATIONS THAT HAVE TARNISHED THE COMPANY'S IMAGE THE COMPANY BEGAN 100 YEARS AGO IN CHICAGO WHEN HARM HUIZENGA A DUTCH IMMIGRANT ARRIVED AND BEGAN HAULING GARBAGE BY CART THE HUIZENGAS PROLIFERATED AND MANY OF THEM WERE NAMED HARRY INCINERATOR HARRY OPERATED A TRASH BURNER ON CHICAGO'S WEST SIDE ORLANDO HARRY RAN THE FLORIDA HAULING BUSINESS H FOR HARRY WAYNE HUIZENGA AFTER YEARS AS A WASTE MANAGEMENT EXECUTIVE NOW RUNS BLOCKBUSTER ENTERTAINMENT THE NATION'S LARGEST VIDEO STORE CHAIN MR BUNTROCK MARRIED INTO THE HUIZENGA CLAN TOOK OVER MANAGING WHAT WAS THEN A COMPANY CALLED ACE SCAVENGER GIVING IT THE NAME OF WASTE MANAGEMENT MORE THAN 20 YEARS AGO I CHOSE THE NAME AND I'M IN LOVE WITH IT SO NO ONE AROUND HERE WANTED TO BRING IT UP MR BUNTROCK SAID BUT UNDERLINGS DID BROACH THE SUBJECT AT PLANNING MEETINGS LAST YEAR AND HE WAS RECEPTIVE TO A CHANGE HE TOYED WITH USING THE WORD ENVIRONMENT BUT EVER MINDFUL OF GROWTH FIGURED THE COMPANY MIGHT SOMEDAY BRANCH BEYOND ENVIRONMENTAL SERVICES THE WASTE MANAGEMENT NAME WILL LIVE ON AS THE NAME OF THE COMPANY'S WHOLLY OWNED NORTH AMERICAN GARBAGEHANDLING UNIT WHICH ACCOUNTS FOR ABOUT HALF OF TOTAL REVENUE AND MORE THAN HALF OF PROFITS THE PARENT COMPANY ALSO OWNS MAJORITY STAKES IN CHEMICAL WASTE MANAGEMENT INC A HAZARDOUS WASTE HANDLER WHEELABRATOR TECHNOLOGIES INC WHICH OPERATES TRASHTOENERGY PLANTS WASTE MANAGEMENT INTERNATIONAL PLC WHICH RUNS NEARLY ALL OVERSEAS OPERATIONS AND THE RECENTLY FORMED RUST INTERNATIONAL INC AN ENGINEERING AND CONSTRUCTION AND ENVIRONMENTAL CLEANUP CONCERN 9301190072 930119 BUSINESS BRIEF MECA SOFTWARE INC SALE PRICE FOR A PRODUCT LINE IS LOWERED TO 93 MILLION MECA SOFTWARE INC FAIRFIELD CONN SAID IT COMPLETED THE SALE OF ITS ONEWRITE PLUS PRODUCT LINE OF SMALL BUSINESS ACCOUNTING SOFTWARE TO NEW ENGLAND BUSINESS SERVICE INC FOR 93 MILLION A PURCHASE PRICE OF 12 MILLION WAS ANNOUNCED WHEN A LETTER OF INTENT WAS SIGNED BY THE TWO PARTIES A SPOKESMAN FOR NEW ENGLAND BUSINESS GROTON MASS SAID THE PRICE WAS LOWERED AFTER A DUE DILIGENCE EVALUATION MECA DEVELOPS PERSONAL PRODUCTIVITY SOFTWARE INCLUDING THE TITLES MANAGING YOUR MONEY TAXCUT AND HOME LAWYER NEW ENGLAND BUSINESS SERVICE PRINTS BUSINESS FORMS 9301190071 930119 BUSINESS BRIEF SYMANTEC CORP LOSS OF 41 MILLION IS POSTED FOR THE FISCAL THIRD QUARTER SYMANTEC CORP SAID ITS ACQUISITION OF CERTUS INTERNATIONAL CORP COMBINED WITH A SOFT MARKET TO CAUSE IT TO POST A FISCAL THIRDQUARTER LOSS IN THE PERIOD ENDED DEC 31 THE CUPERTINO CALIF SOFTWARE CONCERN HAD A NET LOSS OF 41 MILLION OR 17 CENTS A SHARE IT HAD NET INCOME OF 66 MILLION OR 26 CENTS A SHARE A YEAR EARLIER REVENUE FELL 16 TO 487 MILLION FROM 579 MILLION FOR THE NINE MONTHS SYMANTEC REPORTED A NET LOSS OF 101 MILLION OR 43 CENTS A SHARE IT HAD EARNINGS OF 121 MILLION OR 49 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE SLIPPED TO 1547 MILLION FROM 1561 MILLION 9301190070 930119 WORKPLACE FIRMS OFFER WORKERS SELFDEFENSE CLASSES TO COMBAT PERILS OF LONG HOURS TRAVEL BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL LAST FALL LISA GARRY'S EMPLOYER SUBSIDIZED A THREEHOUR WORKSHOP TEACHING PROCEDURES SHE HOPES SHE'LL NEVER HAVE TO USE WE LEARNED KNEETOGROIN TECHNIQUES FEET STOMPING AND EYE RAKING SAYS MS GARRY A HEALTH DIRECTOR AT STRIDE RITE CORP THE CAMBRIDGE MASS SHOE MAKER IS ONE OF A GROWING NUMBER OF US AND CANADIAN COMPANIES THAT ARE HELPING TO PAY FOR COURSES THAT TEACH FEMALE EMPLOYEES HOW TO WARD OFF A MALE ASSAILANT THE SELFDEFENSE COURSES GENERALLY OFFERED ON SITE IN ONE THREETOFOURHOUR PROGRAM REFLECT THE RISING FEARS MANY COMPANIES HAVE ABOUT THE SAFETY OF THEIR FEMALE WORKERS IT JUST SPREAD PROGRESSIVE COMPANIES REALIZE THE NEED FOR SELFPROTECTION SKILLS SAYS MELISSA SOALT WHO TEACHES A THREEHOUR CLASS CALLED STREETSMARTS IN AND AROUND THE BOSTON AREA THE SHORT WORKSHOP WAS ADAPTED IN 1988 FROM AN INTENSIVE 25HOUR COURSE TAUGHT AT MODEL MUGGING OF BOSTON INC MS SOALT'S SCHOOL WHERE WOMEN LEARN TO FIGHT OFF WELLPADDED MALE ATTACKERS MS SOALT WHO BRINGS AN ASSISTANT CLAD IN A DARTH VADERLIKE REINFORCED HELMET TO HER WORKSHOPS TO PLAY THE ROLE OF MUGGER WARNS SHORTTERM STUDENTS NOT TO FEEL OVERCONFIDENT WE MAKE IT CLEAR DON'T GO OUT OF HERE THINKING YOU'VE MASTERED THIS SHE SAYS STILL MS GARRY SAYS SHE AND 29 FEMALE COWORKERS AT STRIDE RITE CAME AWAY WITH A SENSE OF EMPOWERMENT AFTER TAKING MS SOALT'S COURSE STRIDE RITE PICKED UP 60 OF THE TOTAL 700 TAB FOR THE CLASS MODEL MUGGING OF BOSTON LIKE OTHER SELFDEFENSE SCHOOLS WITH SIMILAR PROGRAMS HAS A SLIDING SCALE OF FEES FOR NONPROFIT ORGANIZATIONS LIKE HOSPITALS AND UNIVERSITIES BECAUSE NO SINGLE MARTIAL ARTS ASSOCIATION OVERSEES THE HUNDREDS OF SELFDEFENSE SCHOOLS THROUGHOUT THE COUNTRY IT'S HARD TO DETERMINE HOW MANY SCHOOLS HAVE STARTED TEACHING ASSAULTPREVENTION COURSES TO BUSINESSES AND BENEFITS CONSULTANTS SUCH AS FOSTER HIGGINS AND WYATT CO HAVEN'T YET TALLIED THE NUMBER OF COMPANIES SPONSORING PROGRAMS ALTHOUGH THEY EXPECT THEM TO BECOME INCREASINGLY POPULAR BENEFITS LIKE THIS THAT AREN'T SUBJECT TO A LOT OF REGULATORY INVOLVEMENT THAT AREN'T EXPENSIVE AND DON'T TAKE MUCH TIME ARE VERY ATTRACTIVE SAYS MARK WAGONER A MANAGING CONSULTANT IN SAN FRANCISCO FOR FOSTER HIGGINS IT'S A PEACEOFMIND BENEFIT MUCH LIKE FIRE AND DISASTER DRILLS CERTAINLY THE INTEREST OF FEMALE EMPLOYEES IN SELFDEFENSE IS GROWING BARBARA OTTO A SPOKESWOMAN FOR 9 TO 5 THE NATIONAL ASSOCIATION OF WORKING WOMEN SAYS THE NUMBER OF INQUIRIES ABOUT WORKPLACE SAFETY RECEIVED BY HER CLEVELANDBASED GROUP HAS RISEN SHARPLY SINCE 1990 EMPLOYERS' FEARS FOR WOMEN WORKERS SOMETIMES REFLECT MORE THAN JUST HIGHER URBAN CRIME RATES AND FOCUS INSTEAD ON SPECIFIC ONTHEJOB RISKS AFTER A RASH OF ASSAULTS ON FEMALE REAL ESTATE AGENTS BY A RAPIST WHO ATTACKED HIS VICTIMS ON VACANT PROPERTIES ROYAL LEPAGE REAL ESTATE SERVICES A TORONTOBASED COMPANY PROVIDED A ONEDAY SELFDEFENSE SEMINAR FOR ALL OF ITS FEMALE SALES AGENTS IN THE TORONTO AREA MORE THAN 720 WOMEN TOOK THE COURSE IN THE SIX MONTHS IT WAS OFFERED SAYS WALTER BERLIN A TORONTO MARTIALARTS INSTRUCTOR WHO HAS TAUGHT CORPORATE SELFDEFENSE CLASSES SINCE 1991 LATE HOURS AT THE OFFICE AND ON THE ROAD ALSO HEIGHTEN A GENERAL SENSE OF VULNERABILITY AMONG WORKING WOMEN NESTLE USA OF GLENDALE CALIF A UNIT OF NESTLE SA PAID THE ENTIRE 10000 COST OF SEVERAL FOURHOUR WORKSHOPS FOR MORE THAN 80 FEMALE EMPLOYEES WHO SIGNED UP FOR A COURSE THAT NORMALLY WOULD HAVE COST THEM 125 EACH THE COMPANY WAS CONCERNED BECAUSE WOMEN ARE TRAVELING A LOT SAYS PAULINE NAKAO A NESTLE EMPLOYEE WHO TOOK THE COURSE WE GOT NOTHING BUT OVERWHELMINGLY POSITIVE FEEDBACK FROM THE PARTICIPANTS SAYS NESTLE SPOKESWOMAN LAURIE MACDONALD LIKE MANY COMPANIES NESTLE DECIDED TO SUBSIDIZE A SELFDEFENSE COURSE BECAUSE OF FEARS ABOUT EMPLOYEE SAFETY BUT ITS ACTION MAY CUT DOWN ON LIABILITY COSTS AS WELL IT'S A DETERRENT TO WORKMAN'S COMPENSATION EXPENSES A WOMAN MIGHT GET ACCOSTED OR EVEN RAPED IN THE PARKING LOT SAYS MS NAKAO NESTLE'S FULLPAY POLICY IS RARE THE MAJORITY OF COMPANIES UNDERWRITING SELFDEFENSE COURSES LIKE STRIDE RITE PAY A PERCENTAGE OF THE TOTAL PRICE AND ASK EMPLOYEES TO PICK UP THE REST ROYAL LEPAGE DIDN'T PAY FOR THE COURSE BUT NEGOTIATED WITH MR BERLIN TO OFFER IT AT A REDUCED RATE AND THEN PROVIDED SPACE AND A DAY OFF FOR EMPLOYEES WHO SIGNED UP PRICES CAN RANGE FROM 20 A PERSON TO FLAT COURSE FEES OF 1200 AND BUSINESS IS BRISK WE GET CALLS ALL THE TIME SAYS HEATHER BORNFELD AN ASSISTANT INSTRUCTOR AT IMPACT PERSONAL SAFETY IN VAN NUYS CALIF WHICH RECENTLY CREATED A NEW DIVISION TO HANDLE ITS GROWING ROSTER OF CORPORATE AND GROUP CUSTOMERS CHEMTECH CORP WILLIAM M MERCER INC AND TWO KAISER PERMANENTE HOSPITALS ARE AMONG IMPACT'S CLIENTS SEVERAL SCHOOL DIRECTORS SAY THAT INQUIRIES OFTEN PICK UP IN THE WAKE OF LOCAL REPORTS OF CRIMES SUCH AS CARJACKING OR SERIAL RAPE BUT THAT GENERAL INTEREST IS ALSO ON THE RISE SPONSORING WOMEN'S SELFDEFENSE COURSES CAN PRESENT SOME PROBLEMS FOR COMPANIES WHEN THE COURSE INVOLVES ACTUAL PHYSICAL TECHNIQUES BOTH THE COMPANY AND THE SELFDEFENSE PROVIDER OFTEN HAVE TO SIGN COMPLEX WAIVERS TO DISCOURAGE SUITS IN CASE OF INJURY LINDA NABER A PROJECT MANAGER FOR BERGEN BRUNSWIG CORP SAYS IT TOOK MONTHS TO GET A SELFDEFENSE WORKSHOP APPROVED BECAUSE OF FINANCIAL AND INSURANCERELATED MATTERS THE ORANGE CALIF HEALTHSERVICES DISTRIBUTION COMPANY PAID 60 OF A 125PERPERSON SELFDEFENSE SEMINAR THAT INCLUDED PHYSICAL TECHNIQUES SOME SCHOOLS DON'T USE A MUGGER STANDIN FOR FEAR OF STIRRING MEMORIES OF PAST EXPERIENCES THAT WORKSHOP PARTICIPANTS MAY NOT WANT TO SHARE WITH COWORKERS IT'S A DIFFICULT ISSUE TO BRING INTO A CORPORATION SAYS KAREN PIETROWSKI OF DC SELFDEFENSE KARATE ASSOCIATION IN WASHINGTON WHICH TEACHES BOTH CONTACT AND NONCONTACT ASSAULTPREVENTION WORKSHOPS FOR COMPANIES THE NONCONTACT VERSION EMPHASIZES COMMONLY TAUGHT TECHNIQUES SUCH AS BODY POSTURE AND TONE OF VOICE TO FEND OFF POTENTIAL ATTACKERS THE BIGGEST CHALLENGE TO THE GROWTH OF SELFDEFENSE COURSES THOUGH MAY COME FROM MALE COWORKERS WHO AREN'T WELCOME TO JOIN IN SUBSIDIZING A WOMENONLY COURSE RAISES QUESTIONS OF DISCRIMINATION THAT SOME COMPANIES HAVE HAD TO ADDRESS HEADON MASSACHUSETTS MUTUAL LIFE INSURANCE CO OF SPRINGFIELD MASS IS AMONG A NUMBER OF COMPANIES THAT MADE THE COURSE AVAILABLE TO WIVES AND DAUGHTERS OF MALE EMPLOYEES OTHERS STRIVE FOR FULL EQUALITY MACROMEDIA INC A SMALL SOFTWARE DEVELOPMENT COMPANY IN SAN FRANCISCO DECIDED TO OFFER SEPARATE COURSES FOR MALE AND FEMALE EMPLOYEES AFTER ITS LAWYERS RAISED OBJECTIONS THE LEGAL DEPARTMENT SAID HEY WE HAVE TO BE SENSITIVE HERE WE DON'T WANT TO DISCRIMINATE SAYS RENEE COURINGTON A FORMER MACROMEDIA EMPLOYEE WHO PERSUADED THE COMPANY PRESIDENT TO OFFER A SELFDEFENSE COURSE A SPOKESWOMAN FOR MACROMEDIA SAYS THE COMPANY WANTED TO OFFER SELFDEFENSE CLASSES TO EVERYBODY OUT OF HARM'S WAY INC AN ETOBICOKE ONTARIO COMPANY ADVERTISES THAT MORE THAN 400 CORPORATIONS HAVE OFFERED ITS ANTIASSAULT PROGRAM OVER THE PAST FOUR YEARS A PROGRAM THAT THE COMPANY'S PRESIDENT HOWARD ROSE INTENDS TO KEEP SEGREGATED WE FEEL IT'S A BETTER PROGRAM FOR WOMEN IF THERE ARE ONLY WOMEN HE SAYS BUT MR ROSE WHO PROVIDES A SEPARATE MEN'S COURSE NOTES THAT THE EQUALITY ISSUE IS OFTEN MOOT WHAT HAPPENS IN MANY CASES HE SAYS IS THEY'LL PUT UP A REGISTRATION FORM AND MEN WON'T SIGN UP 9301190069 930119 BUSINESS BRIEF CYPRESS SEMICONDUCTOR CORP FIRM POSTS 4THPERIOD LOSS ON 5 DECLINE IN REVENUE CYPRESS SEMICONDUCTOR CORP HIT BY A SLUGGISH BUSINESS ENVIRONMENT PRICE DECLINES AND RESTRUCTURING COSTS POSTED A FOURTHQUARTER LOSS THE SAN JOSE CALIF COMPANY HAD A FOURTHQUARTER NET LOSS OF 237 MILLION OR 66 CENTS A SHARE COMPARED WITH NET INCOME OF 59 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE WAS 674 MILLION DOWN 5 FROM 71 MILLION THE LOSS FOR 1992 WAS 21 MILLION OR 56 CENTS A SHARE COMPARED WITH NET OF 342 MILLION OR 85 CENTS A SHARE FOR 1991 THE PRETAX COSTS OF RESTRUCTURING A LAWSUIT SETTLEMENT RELOCATION OF FACILITIES ABROAD AND SHUTDOWN OF A PLANT WERE 372 MILLION FOR THE FOURTH QUARTER IN 1992 WHEN IT HAD ITS FIRST QUARTERLY LOSSES SINCE GOING PUBLIC IN 1986 CYPRESS STREAMLINED ITS PAYROLL AND TRANSFERRED 75 OF ITS PRODUCT ASSEMBLY AND TEST FACILITIES TO THAILAND WITH RESTRUCTURING ACCOMPLISHED CYPRESS PRESIDENT AND CHIEF EXECUTIVE OFFICER TJ RODGERS SAID 1993 WOULD BE A YEAR OF RETURN FOR CYPRESS HE ADDED THE COMPANY ENTERED 1993 WITH ONE OF THE BEST ORDER BACKLOGS IN ITS HISTORY 9301190068 930119 COMPUTERS RIVALS BORLAND LOTUS DISCUSSED POSSIBLE MERGER BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL THE CHIEF EXECUTIVE OFFICERS OF BORLAND INTERNATIONAL INC AND LOTUS DEVELOPMENT CORP MET LAST MONTH TO DISCUSS A POSSIBLE MERGER BUT FAILED TO COME TO ANY AGREEMENT PEOPLE AT BOTH COMPANIES SAY THAT BORLAND AND LOTUS WOULD CONSIDER GETTING TOGETHER ON ANYTHING IS REMARKABLE GIVEN THE ACRIMONIOUS RELATIONSHIP BETWEEN THE TWO COMPANIES THE RIVALRY BETWEEN JIM P MANZI OF LOTUS AND PHILIPPE KAHN OF BORLAND OFTEN HAS DESCENDED INTO PERSONAL DISPARAGEMENT AND LOTUS HAS SUED BORLAND IN FEDERAL COURT IN BOSTON ALLEGING THAT BORLAND COPIED PARTS OF LOTUS'S FLAGSHIP 123 SOFTWARE SPREADSHEET THE MEETING BETWEEN MESSRS MANZI AND KAHN TOOK PLACE IN SAN FRANCISCO ON THE AFTERNOON OF DEC 8 WITHOUT INVESTMENT BANKERS OR ATTORNEYS AND LASTED LESS THAN TWO HOURS THE TWO SOFTWARE EXECUTIVES DECLINED TO COMMENT ON THE MEETING BUT EACH HAS BRIEFED TOP AIDES ON IT ALL THAT CONFIDANTS OF MR MANZI AND MR KAHN AGREE ON IS THAT THE DISCUSSION TOOK PLACE AT THE AIRPORT MARRIOTT HOTEL AND THAT NOTHING CAME OF THE MEETING EVERYTHING ELSE SUCH AS WHO APPROACHED WHOM AND WHAT TERMS WERE PROPOSED IS A MATTER OF DISPUTE THE MEETING SUGGESTS THAT ONE OR BOTH COMPANIES SEE A PRESSING NEED TO POOL RESOURCES WITH COMPETITORS TO TRY TO COUNTER THE GROWING DOMINANCE OF MICROSOFT CORP THE SOFTWARE INDUSTRY LEADER ANALYSTS SAY SUCH DISCUSSIONS ARE INCREASINGLY LIKELY TO OCCUR ACROSS THE SOFTWARE INDUSTRY BOTH BORLAND AND LOTUS HAVE BEEN BADLY HURT BY MICROSOFT AND BY DEEP PRICECUTTING LOTUS WHICH ONCE DOMINATED THE 1 BILLION SPREADSHEET BUSINESS HAS BEEN UNABLE TO GAIN A DOMINANT SHARE OF THE MARKET FOR SPREADSHEETS THAT RUN ON MICROSOFT'S FASTGROWING WINDOWS SOFTWARE STILL LOTUS REMAINS PROFITABLE WHILE BORLAND REPORTED YESTERDAY A NET LOSS OF 613 MILLION OR 234 A SHARE ON A 9 DECLINE IN REVENUE TO 1043 MILLION FOR ITS THIRD QUARTER ENDED DEC 31 THE DECEMBER MEETING WAS THE THIRD TIME IN THE PAST NINE MONTHS THAT A MERGER OF LOTUS AND BORLAND HAS BEEN BROACHED LAST SUMMER AN INVESTMENT BANKER APPROACHED LOTUS ON BORLAND'S BEHALF BUT THE INFORMAL PROPOSAL UNDER WHICH MR KAHN APPARENTLY WOULD HAVE RUN THE MERGED COMPANY WAS REJECTED A PERSON WITH DIRECT KNOWLEDGE OF THE ENCOUNTER SAYS LOTUS INSIDERS SAY MR KAHN THEN APPROACHED MR MANZI DIRECTLY AT AN INDUSTRY CONFERENCE IN SEPTEMBER AND SAID THAT THE INDUSTRIAL LOGIC IS COMPELLING FOR A COMBINATION THEY SAY THE TWO THEN MET IN SAN FRANCISCO LAST MONTH WHERE MR KAHN AGAIN SUGGESTED THAT THEY COMBINE FORCES TO TAKE ON MICROSOFT PEOPLE AT BORLAND CONTEND THAT IT WAS MR MANZI WHO BROUGHT IT UP BOTH IN SEPTEMBER AND LAST MONTH EACH COMPANY FLATLY DENIES APPROACHING THE OTHER AS DIRECT COMPETITORS BOTH HAVE OBVIOUS REASONS TO WANT TO MAKE THE OTHER LOOK WEAK UNCERTAIN OR READY TO SELL OUT IN THE LOTUS VERSION OF THE ENCOUNTER MR KAHN SUGGESTED THAT CONSOLIDATION WOULD BE GOOD FOR BOTH COMPANIES IN THE STRUGGLE WITH MICROSOFT AND THAT BORLAND'S SPREADSHEET TECHNOLOGY WAS SUPERIOR BUT MR MANZI IS SAID TO HAVE DECLINED POINTING TO BORLAND'S CURRENT PROBLEMS INCLUDING A PRECIPITOUS DECLINE IN ITS STOCK PRICE AND SAYING THAT ALL HE COULD POSSIBLY WANT FROM BORLAND WAS ITS PARADOX DATABASE SOFTWARE WHICH WOULD FILL A GAP IN LOTUS'S PRODUCT LINE IN THE BORLAND VERSION MR MANZI IS SAID TO HAVE OFFERED A MERGER IN WHICH MR KAHN WOULD RUN THE RESULTING ENTITY BUT WITH MR MANZI RETAINING THE CHAIRMAN'S TITLE MR KAHN ALSO HAS TOLD ASSOCIATES THAT MR MANZI EARLIER EXPRESSED INTEREST IN SELLING ONLY LOTUS'S SPREADSHEET BUSINESS SO THAT LOTUS COULD CONCENTRATE ON BUILDING ITS GROWING BUT STILL MODEST NETWORK SOFTWARE BUSINESS A LOTUS OFFICIAL IN CAMBRIDGE MASS DISMISSED BORLAND'S VERSION OF EVENTS IT'S ABSOLUTELY INSANE TO THINK THAT JIM MANZI WOULD HAND OVER CONTROL TO PHILIPPE KAHN AFTER ALL THAT HAS HAPPENED BETWEEN THEM HE SAID MR MANZI THE OFFICIAL SAID BELIEVES THAT HIS COUNTERPART AT BORLAND IS DESPERATE A BORLAND EXECUTIVE IN SCOTTS VALLEY CALIF SAID THE COMPANY HAS ABSOLUTELY NO INTEREST IN A MERGER WITH LOTUS MR MANZI MUST BE GETTING DESPERATE AND HAS BEEN HURT BY BORLAND'S TOUGH PRICING HE SAID AN ANALYST WHO HAS FOLLOWED BOTH COMPANIES SINCE THEIR FOUNDING WAS SKEPTICAL THAT MR MANZI WOULD OFFER TO RELINQUISH CONTROL TO MR KAHN HE NOTED THAT MR MANZI ONCE BEFORE REFUSED TO GIVE UP CONTROL IN LOTUS'S 1991 PROPOSED PURCHASE OF NOVELL INC BASED IN PROVO UTAH MR MANZI BACKED OUT WHEN NOVELL SOUGHT A CONTROLLING POSITION LATE IN NEGOTIATIONS EVEN THOUGH MANY ANALYSTS SAY A MERGER WITH NOVELL WOULD HAVE BENEFITED LOTUS SHAREHOLDERS G PASCAL ZACHARY CONTRIBUTED TO THIS ARTICLE 9301190067 930119 CANADIAN RESCUE OF HIBERNIA VENTURE COULD PROD OTHER OFFSHORE OIL PROJECTS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE CANADIAN GOVERNMENT'S DECISION LAST WEEK TO RESCUE THE 41 BILLION HIBERNIA OFFSHORE OIL PROJECT MEANS A DOZEN OR SO OTHER VENTURES OFF THE COAST OF THE PROVINCE OF NEWFOUNDLAND ARE NOW LIKELY TO PROCEED BY THE END OF THE DECADE HIBERNIA'S SPONSORS AND SOME ANALYSTS ARGUE I BELIEVE THE HIBERNIA PROJECT IS THE BEGINNING OF A MAJOR CANADIAN OFFSHORE PETROLEUM INDUSTRY SAID NORMAN MCINTYRE PRESIDENT OF PETROCANADA'S RESOURCES DIVISION NEW CONFIDENCE IN ACHIEVING COMMERCIAL PRODUCTION FROM HIBERNIA WILL I'M SURE STIMULATE OTHER EXPLORATION AND DEVELOPMENT PROGRAMS WHILE HIBERNIA ALONE IS ESTIMATED TO CONTAIN ABOUT 525 MILLION BARRELS OF RECOVERABLE CRUDE OIL EARLY CALCULATIONS PUT RESERVES AT OTHER FIELDS IN THE REGION AT MORE THAN 700 MILLION BARRELS FIELDS SUCH AS TERRA NOVA WHITEROSE BEN NEVIS AND HEBRON COULD COME ON STREAM AS EARLY AS THE END OF THE DECADE PARTICIPANTS HAVE SUGGESTED THIS CERTAINLY HAS THE POTENTIAL OF BEING A NORTH SEATYPE DEVELOPMENT SAID NORMAN HIGBY AN OIL AND GAS CONSULTANT IN MENLO PARK CALIF JIM DOAK AN INDUSTRY ANALYST WITH FIRST MARATHON SECURITIES LTD IN TORONTO SAID THE DECISION TO GO AHEAD WITH HIBERNIA WILL ALLOW OTHER PROJECTS TO BENEFIT FROM THE CREATION OF INFRASTRUCTURE IN NEWFOUNDLAND AND OFFSHORE YOU COULD SHAVE OFF ANOTHER 40 CENTS A BARREL FROM THE PRODUCTION COSTS HE SAID ADDING THAT HIBERNIA WILL ALLOW COMPANIES LIKE PETROCANADA AND MOBIL CORP'S CANADIAN UNIT TO FURTHER DEVELOP TECHNOLOGIES TO SEARCH FOR AND PRODUCE OIL ELSEWHERE IN THE REGION SOME CRITICS CHARGE THAT FIELDS SUCH AS TERRA NOVA WILL NEED PACKAGES OF TAX GRANTS AND INCENTIVES SIMILAR TO THE THREE BILLION CANADIAN DOLLARS US234 BILLION IT HAS INVESTED IN HIBERNIA IN THE FORM OF GRANTS LOAN GUARANTEES AND DIRECT INVESTMENT BUT A SPOKESMAN FOR PETROCANADA INSISTS TERRA NOVA AT LEAST IS COMPLETELY COMMERCIALLY VIABLE ON A STANDALONE BASIS THIS IS THE PROJECT IN WHICH WE HAVE THE MOST INTEREST IN SEEING PROCEED NEXT HE ADDED WE FEEL IT CAN MOVE FORWARD WITHOUT LONG NEGOTIATIONS OR COMPLICATED FISCAL PACKAGES WITH HIBERNIA'S FUTURE SETTLED THE SPOKESMAN SAYS HE EXPECTS PETROCANADA TO DISCUSS THE TIMING FOR TERRA NOVA'S DEVELOPMENT UNLIKE HIBERNIA WHERE THE CONSTRUCTION OF A FIXED CONCRETE DRILLING PLATFORM WILL ACCOUNT FOR A LARGE PORTION OF THE PROJECT'S COSTS COMPANIES WITH INTERESTS IN OTHER FIELDS ARE LIKELY TO USE CHEAPER FLOATING DRILL RIG TECHNOLOGY THAT ANALYSTS HAVE SAID MAKES IT MORE LIKELY THAT THESE VENTURES WILL MOVE FORWARD SOONER RATHER THAN LATER WHILE INCENTIVES MAY BE FEWER AND FARTHER BETWEEN FIRST MARATHON'S MR DOAK SUGGESTS THE ESTABLISHMENT OF ATTRACTIVE ROYALTY STRUCTURES WOULD GO A LONG WAY TO ENSURING THE DEVELOPMENT OF OTHER FIELDS BUT MR HIGBY WARNS THAT THE GOVERNMENT SHOULD BE PREPARED TO MAKE HEAVY FURTHER INVESTMENTS IF NEEDED TO MOVE FORWARD PROMPTLY WITH THE DEVELOPMENT OF THE GRAND BANKS RESERVES OTHERWISE HE SAYS THE MARKET NICHE COULD BE LOST TO COMPETITORS WITH DEEP POCKETS INCLUDING ENTERPRISES OWNED AND CONTROLLED BY COUNTRIES SUCH AS SAUDI ARABIA IT'S LIKE A POKER GAME YOU'VE GOT TO INVEST IN YOUR CHIPS UP FRONT OR YOU WON'T BE IN THE GAME AT ALL HE SAYS BUT THERE'S NO GUARANTEE YOU WON'T WALK WITH HOLES IN YOUR POCKETS AFTER TERRA NOVA PETROCANADA DOCUMENTS SAY COULD COME THE DEVELOPMENT OF WHITEROSE BELIEVED TO CONTAIN ABOUT 155 MILLION BARRELS OF OIL AND AS MUCH AS ONE TRILLION CUBIC FEET OF GAS THE COMPANY ALSO SEES A VERY HIGH UPSIDE RESERVES POTENTIAL FOR THE HEBRON AND BEN NEVIS FIELDS WHICH COLLECTIVELY ARE THOUGHT TO CONTAIN AT LEAST 400 MILLION BARRELS OF CRUDE OIL ON TOP OF THAT HIBERNIA ITSELF COULD CONTAIN MORE CRUDE OIL THAN IS NOW THOUGHT THE RIG'S PROPOSED LOCATION HAS BEEN CHANGED TO ONE WHERE IT CAN MORE EASILY TAP THE NEARBY AVALON RESERVES PROJECT SPONSORS SAY THEY HAVE DECLINED TO ESTIMATE HOW MUCH OIL COULD BE FOUND THERE IN THE MEANTIME THERE LIKELY WILL BE CHANGES IN THE COMPANIES WHO NOW HOLD INTERESTS IN THE GRAND BANKS OIL FIELDS PETROCANADA FOR EXAMPLE IS ALREADY LOOKING TO SELL AS MUCH AS 10 OF ITS 25 STAKE IN HIBERNIA AND MAY PUT OTHER HOLDINGS ON THE BLOCK MURPHY OIL CORP OF ARKANSAS WHICH PLANS TO ACQUIRE 65 OF HIBERNIA HAS EXPRESSED INTEREST IN PARTICIPATING IN OTHER SUCH PROJECTS 9301190066 930119 VIRGINIA CIRCUIT JUDGE DISMISSES INDICTMENT AGAINST FIRST INVESTORS NEW YORK FIRST INVESTORS CORP SAID IT WON AN IMPORTANT LEGAL VICTORY YESTERDAY WHEN A VIRGINIA JUDGE DISMISSED A STATE INDICTMENT CHARGING THE MUTUAL FUND COMPANY WITH CRIMINAL FRAUD IN SELLING ITS JUNK BOND FUNDS DURING THE 1980S CIRCUIT COURT JUDGE JAMES B WILKINSON IN RICHMOND MADE HIS RULING FOLLOWING THREE DAYS OF A TRIAL IN WHICH STATE PROSECUTORS PRESENTED THEIR CASES AGAINST FIRST INVESTORS OF NEW YORK JUDGE WILKINSON SAID THE FRAUD CHARGE WAS FILED TOO LATE BY PROSECUTORS HE ALSO SAID HE HAD RESERVATIONS ABOUT THE DECISION BY THE PROSECUTORS TO PURSUE THE CASE ACCORDING TO FIRST INVESTORS THE VIRGINIA CASE WAS THE ONLY CRIMINAL MATTER FIRST INVESTORS FACED IN CONNECTION WITH SALES OF ITS CONTROVERSIAL FUND FOR HIGH INCOME AND HIGH YIELD FUND BUT NUMEROUS STATE AND FEDERAL REGULATORS HAVE ALLEGED IN CIVIL COMPLAINTS THAT FIRST INVESTORS USED MISLEADING DOORTODOOR SALES TACTICS TO SELL THE JUNK BOND FUNDS LAST YEAR FIRST INVESTORS PAID 247 MILLION TO SETTLE SECURITIES AND EXCHANGE COMMISSION CIVIL CHARGES IN CONNECTION WITH THE FUNDS IT HAS ALSO RESOLVED ALL OUTSTANDING PROCEEDINGS INVOLVING THE FUNDS AND RESUMED SALES IN 37 STATES BUT FIRST INVESTORS STILL FACES CIVIL ACTIONS IN FOUR STATES AS WELL AS A CLASS ACTION SEEKING ADDITIONAL MONEY DAMAGES ON BEHALF OF ALLEGEDLY DEFRAUDED INVESTORS WE BELIEVED THE PROSECUTORS HAD MADE NO CASE SAID MICHAEL S MILLER CHIEF EXECUTIVE OFFICER OF FIRST INVESTORS HE ADDED THAT THE COMPANY WAS LOOKING FORWARD TO PUTTING ALL LITIGATION BEHIND IT 9301190065 930119 HILLARY CLINTON MUST ORCHESTRATE ANOTHER RESCUE BY ALBERT R HUNT HILLARY CLINTON NEEDS TO COME TO HER HUSBAND'S RESCUE ALTHOUGH MANY AMERICANS HAVE A MUCH HIGHER OPINION OF THE PRESIDENTELECT TODAY THAN THEY DID ON ELECTION DAY AND AN OVERWHELMING MAJORITY WANT HIM TO SUCCEED BILL CLINTON IS ASSUMING OFFICE TOMORROW WITH SOME SERIOUS UNDERLYING PROBLEMS THE INTERMINABLE 11WEEK TRANSITION DID LITTLE TO ESTABLISH THE POLITICAL AND POLICY PREDICATES FOR A SUCCESSFUL START AN ADMIRABLY DIVERSE CABINET HAS BEEN OVERSHADOWED BY A PERCEPTION THAT TOO MANY WERE SELECTED JUST FOR THE SAKE OF DIVERSITY AND THAT PRESSURE GROUPS TOO OFTEN COWED MR CLINTON SOME SENSIBLE SHIFTS FROM CAMPAIGN PRONOUNCEMENTS HAVE IN THE WORDS OF SEN DANIEL PATRICK MOYNIHAN LEFT MORE THE IMPRESSION OF CLATTER THAN OF A LEADER SERIOUSLY CONFRONTING THE REALITIES OF GOVERNANCE EVEN MORE OMINOUS ARE EARLY SIGNS OF FAILURES TO CLEARLY DELINEATE PRIORITIES AND RESPONSIBILITIES ONE EXAMPLE THE NEW ADMINISTRATION HAS MADE A TENTATIVE DECISION THAT HEALTH POLICY IS IN THE DOMESTICISSUES SPHERE BUT THE BUDGETARY IMPACT IS IN THE ECONOMIC AREA MOREOVER THE WHITE HOUSE STAFF WHICH IN THE MODERN PRESIDENCY MUST BE THE DRIVING FORCE BEHIND ANY STRATEGIC SUCCESSES SEEMS ILLEQUIPPED TO THIS TASK LACKING CRITICAL POLITICAL AND POLICY ELEMENTS ALREADY SOME WISER WASHINGTON HEADS ARE PLACING ODDS ON WHEN THE FIRST MAJOR SHAKEUP HAPPENS THE ODDS RANGE FROM MARCH TO SEPTEMBER OVERARCHING ALL THIS BILL AND HILLARY CLINTON ARE MICROMANAGING EVERYTHING IN SIGHT DECISIONS AS MUNDANE AS LOWLEVEL STAFF SLOTS AT THE WHITE HOUSE ARE BEING SETTLED AT THE VERY TOP THERE'S ENCOURAGING NEWS HOWEVER A SIMILAR SITUATION PLAGUED THE CLINTON CAMPAIGN EARLY LAST SUMMER AND IT WAS RECTIFIED THEN THERE WERE A HALFDOZEN OR MORE POWER CENTERS IN THE CAMPAIGN THE ARKANSAS ADVISERS THE NOWLEGENDARY FRIENDS OF BILL THE LITTLE ROCK CAMPAIGN STAFF THE POLITICAL CONSULTANTS THE DECISIONMAKING PROCESS RESEMBLED THE TOWER OF BABEL CONFERENCE CALLS TO DECIDE BIG ISSUES SOMETIMES INCLUDED MORE THAN 50 PARTICIPANTS THE DE FACTO CAMPAIGN MANAGERS WERE BILL AND HILLARY CLINTON THE DE FACTO ATMOSPHERE WAS CHAOS MRS CLINTON RECOGNIZED THIS AS DISASTROUS AND TOLD HER HUSBAND A SMALL CADRE HAD TO BE IN CHARGE LED BY A STRONG FIGURE SHE PLAYED A MAJOR ROLE THEN IN PUTTING TOGETHER SUCH A GROUP SHE DUBBED IT THE WAR ROOM AND THOUGHT IT SHOULD BE HEADED BY POLITICAL CONSULTANT JAMES CARVILLE WHO SHE REPORTEDLY SAID WAS THE ONLY ONE WHO CAN PLAY IN THIS LEAGUE MR CARVILLE ENLISTED A HALFDOZEN TALENTED LIEUTENANTS AFTERWARD THE CAMPAIGN RARELY SUFFERED FROM BABELTYPE CONFUSION THE CLINTONS EVEN PULLED BACK FROM RUNNING THE SHOW ONCE THE CAMPAIGN ENDED HOWEVER THEY TOOK FULL CONTROL THERE WAS A CONSCIOUS DECISION TO HAVE A RELATIVELY LOWPOWERED WHITE HOUSE STAFF AND SUCH POTENTIALLY POWERFUL CABINET MEMBERS AS PAUL VOLCKER AND BILL BRADLEY WERE REJECTED REPORTEDLY THE NEW PRESIDENT BELIEVES A STRONG WHITE HOUSE STAFF OR TOO STRONG A CABINET IS INCONSISTENT WITH A STRONG PRESIDENT MR CLINTON STUDENT OF HISTORY SHOULD KNOW BETTER HARRY TRUMAN'S NOW REVERED PRESIDENCY WAS ANCHORED BY GEORGE MARSHALL AND DEAN ACHESON AWESOME CABINET MEMBERS AND JIM BAKER'S EXTRAORDINARY SKILLS MADE RONALD REAGAN STRONGER AND MORE SUCCESSFUL INDEED THE REAGAN WHITE HOUSE DEMONSTRATED THAT THE PRESIDENCY TODAY SIMPLY CAN'T FUNCTION EFFECTIVELY WITHOUT A STRONG WHITE HOUSE STAFF IT'S UNFAIR AND INACCURATE HOWEVER TO SUGGEST THE PROBLEM IS THOMAS MACK MCLARTY BILL CLINTON'S BOYHOOD FRIEND AND HIS CHOICE FOR CHIEF OF STAFF MR MCLARTY ACCORDING TO THOSE WHO KNOW HIM IS AS ABLE AS HE IS NICE BUT HE DOESN'T KNOW THE WAY THIS CITY WORKS AND ONE OF THE WISER DEMOCRATIC STRATEGISTS ONE WHO WANTS MR CLINTON TO SUCCEED NOTES THAT THE SUPPORTING WHITE HOUSE STAFF THOUGH THERE ARE SOME VERY TALENTED YOUNG MEN AND WOMEN DOESN'T HAVE SUFFICIENT STANDING OR STATURE WHICH IN ITSELF BECOMES A SELFFULFILLING PROPHECY MR CLINTON'S TASK IS TOUGHER THAN MR REAGAN'S HE NOT ONLY HAS TO SELL HIS POLICY HE ALSO HAS TO SELL THE UNDERLYING RATIONALE BEHIND IT AND LIKE GEORGE BUSH MR CLINTON'S POLITICAL SUPPORT IS IMPRESSIVELY WIDE BUT NOT VERY DEEP THAT MEANS WHEN THE TOUGH TIMES INVARIABLY COME THERE'S NO POLITICAL SAFETY NET BASED ON THE TRANSITION THE TEMPTATION WILL BE FOR THE PRESIDENT HIMSELF TO RESOLVE THESE DIFFICULTIES BILL CLINTON AS SYNTHESIZER IN CHIEF POLICY WONK IN CHIEF ENFORCER IN CHIEF AND ISSUES RESOLVER IN CHIEF SIMPLY WON'T WORK THIS IS WHY IT'S TIME FOR HILLARY CLINTON TO ORCHESTRATE ANOTHER SILENT COUP A NEW PRESIDENT DOESN'T HAVE TO GET EVERYTHING HE WANTS IN THE FIRST 100 DAYS OR THE FIRST SIX MONTHS BUT THESE DAYS DO SET A TONE AND TEXTURE OF AN ADMINISTRATION THAT IF NEGATIVE ARE ALMOST IMPOSSIBLE TO SHAKE MRS CLINTON HAS HER OWN SHARE OF PROBLEMS SHE'S GETTING SOME BAD ADVICE FROM FRIENDS PROCLAIMING THE COUNTRY VOTED FOR HER TOO WHICH IS PATENTLY NOT SO AN OFFICE IN THE WEST WING AND ANSWERING QUESTIONS DIRECTED AT HER HUSBAND ARE UNNECESSARILY PRESUMPTUOUS SYMBOLS BUT MRS CLINTON IS EVERY BIT AS SMART AS ADVERTISED AND ISN'T THE LEFTWING IDEOLOGUE DEPICTED BY SOME CONSERVATIVES IN SOME AREAS HER SKILLS AND JUDGMENT EXCEED HER HUSBAND'S NOW IS THE TIME FOR HER TO UTILIZE THEM 9301190064 930119 BUSINESS BRIEF PENNZOIL CO CHARGE OF 14 MILLION IS SET FOR 1ST PERIOD TO CALL DEBT PENNZOIL CO HOUSTON SAID IT WILL TAKE A 14 MILLION CHARGE IN THE FIRST QUARTER TO REDEEM FOUR DEBT ISSUES ON MARCH 1 IN THE YEARAGO QUARTER THE OIL COMPANY HAD A LOSS OF 116 MILLION OR 29 CENTS A SHARE THE DEBT TO BE RETIRED INCLUDES 433 MILLION OF 9 DEBENTURES DUE DEC 31 2001 AT A REDEMPTION PRICE OF 10175 OF THEIR PRINCIPAL AMOUNT 100 MILLION OF 9 1/8 NOTES DUE MARCH 1 1996 AT A REDEMPTION PRICE OF 100 OF THEIR PRINCIPAL AMOUNT 51 MILLION OF PENNZOIL'S 12 1/8 DEBENTURES DUE DEC 1 2007 AT A REDEMPTION PRICE OF 10559 OF THEIR PRINCIPAL AMOUNT AND 75 MILLION OF 12 1/4 DEBENTURES DUE DEC 1 2007 AT A REDEMPTION PRICE OF 10559 OF THEIR PRINCIPAL AMOUNT 9301190062 930119 INTERNATIONAL BRIEF CHARTER CONSOLIDATED PLC UK CONCERN TRIES TO SELL STAKE IN JOHNSON MATTHEY CHARTER CONSOLIDATED PLC CONFIRMED IT IS TRYING TO SELL ITS 3839 STAKE IN PRECIOUS METALS GROUP JOHNSON MATTHEY PLC AT MONDAY'S CLOSING PRICE OF 494 PENCE 756 THE 709 MILLION JOHNSON MATTHEY ORDINARY SHARES ARE VALUED AT 3502 MILLION 536 MILLION IN A SEPARATE STATEMENT JOHNSON MATTHEY SAID IT WAS AWARE THAT CHARTER IS HAVING DISCUSSIONS WITH ONE PARTY WHO WOULD ACQUIRE A SHAREHOLDING OF LESS THAN 30 BUT IT DIDN'T DISCLOSE THE POTENTIAL BUYER'S IDENTITY CHARTER SAID AT PRESENT IT IS NOT POSSIBLE TO SAY WHETHER OR NOT THE CURRENT NEGOTIATIONS WILL BE SUCCESSFUL CHARTER A UK INDUSTRIAL CONGLOMERATE THAT IS 3574OWNED BY SOUTH AFRICAN MINING GROUP MINORCO SAID ITS SHAREHOLDING IN JOHNSON MATTHEY REPRESENTS MORE THAN HALF OF ITS MARKET CAPITALIZATION OF 6873 MILLION 9301190061 930119 BUSINESS BRIEFS GTE CORP'S GTE MOBILNET INC UNIT AGREED TO BUY A CONTROLLING INTEREST IN BURLINGTON CELLULAR INC FROM GENERAL CELLULAR INC TERMS WEREN'T DISCLOSED UNILEVER NV AND BSN SA FORMED A JOINT VENTURE TO DEVELOP COMBINATION ICE CREAM AND YOGURT PRODUCTS ICF INTERNATIONAL INC SAID A UNIT RECEIVED A THREEYEAR 12 MILLION CONTRACT TO CONDUCT PETROLEUM CONTAMINATION ASSESSMENT AND CLEANUP OPERATIONS FOR THE FLORIDA DEPARTMENT OF ENVIRONMENTAL REGULATION MOBILE GAS SERVICE CORP SIGNED A LETTER OF INTENT TO BUY PART OF THE GAS DISTRIBUTION SYSTEM OF SOUTH ALABAMA UTILITIES FOR 112 MILLION SUPERMAC TECHNOLOGY INC ENTERED INTO A LICENSING AGREEMENT WITH 3DO CO GRANTING 3DO RIGHTS TO USE SUPERMAC'S COMPACTVIDEO ADVANCED COMPRESSION TECHNOLOGY IN A CDROMBASED MULTIMEDIA SYSTEM TERMS WEREN'T DISCLOSED ECC INTERNATIONAL CORP SIGNED A PILOT PROGRAM ORDER WITH HAAGENDAZS FOR 60 FROZEN FOOD VENDING MACHINES TO BE PLACED IN MOVIE THEATERS IN NEW YORK AND LOS ANGELES 9301190060 930119 BUSINESS BRIEF MA HANNA CO OPERATING INCOME INCREASED TO 76 MILLION IN 4TH PERIOD MA HANNA CO CLEVELAND REPORTED FOURTHQUARTER NET INCOME OF 105 MILLION OR 53 CENTS A FULLY DILUTED SHARE DOWN 22 FROM 135 MILLION OR 70 CENTS A SHARE A YEAR EARLIER BUT A SPOKESMAN FOR THE MAKER OF PLASTICS AND SPECIALTY CHEMICALS SAID PROFIT FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES AND EXTRAORDINARY ITEMS ROSE TO 76 MILLION OR 38 CENTS A SHARE FROM 4 MILLION OR 21 CENTS A SHARE SALES FOR THE QUARTER ROSE 15 TO 348 MILLION FROM 303 MILLION FOR THE YEAR THE COMPANY HAD NET OF 19 MILLION OR 96 CENTS A SHARE UP FROM 844000 OR THREE CENTS A SHARE PROFIT FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGES AND EXTRAORDINARY ITEMS WAS 29 MILLION OR 145 A SHARE UP 33 FROM 22 MILLION OR 85 CENTS A SHARE IN 1991 SALES ROSE 16 TO 133 BILLION FROM 115 BILLION IN 1992 THE COMPANY HAD A CHARGE OF 115 MILLION OR 58 CENTS A SHARE FROM ACCOUNTING CHANGES 9301190059 930119 BUSINESS BRIEF LONRHO PLC RIGHTS ISSUE LARGELY TAKEN BY GERMAN FINANCIER BOCK UK MINING AND TRADING CONGLOMERATE LONRHO PLC SAID ITS 169 MILLION 2587 MILLION RIGHTS ISSUE WAS 146 TAKEN UP BY SHAREHOLDERS WITH ALL BUT 07 REPRESENTING PURCHASES BY GERMAN FINANCIER DIETER BOCK LONRHO SAID THE RESULT WAS IN LINE WITH ITS EXPECTATIONS MR BOCK'S SHARE PURCHASE REPRESENTED THE RIGHTS OF LONRHO'S CHIEF EXECUTIVE TINY ROWLAND IN DECEMBER MR BOCK BOUGHT HALF OF MR ROWLAND'S 15 HOLDING AS WELL AS OPTIONS ON MOST OF THE REST MR BOCK'S INVESTMENT VEHICLE LAERSTATE BV ALSO UNDERWROTE PART OF THE LONRHO RIGHTS ISSUE AND SO WILL TAKE AN ADDITIONAL 36 OF THE NEW SHARES LONRHO SAID PREVIOUSLY THAT MR BOCK'S SHAREHOLDING COULD RISE TO 25 AND SAID HE WOULD BECOME A LONRHO DIRECTOR BUT THE COMPANY DIDN'T COMMENT ON BRITISH PRESS SPECULATION THAT MR ROWLAND WILL RETIRE IN FAVOR OF MR BOCK THE 1987 MILLION NEW SHARES WERE PRICED AT 85 PENCE 128 EACH THE RIGHTS ISSUE CLOSED FRIDAY 9301190058 930119 CALTON PROPOSES PLAN FOR PREPACKAGED' BANKRUPTCY SHIELD MANALAPAN NJ CALTON INC BATTERED BY THE CONTINUED SLUMP IN THE HOMEBUILDING INDUSTRY PROPOSED A PREPACKAGED BANKRUPTCY PETITION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE CALTON A HOUSING DEVELOPER AND HOMEBUILDER FIRST DEFAULTED ON A BANK CREDIT LINE IN DECEMBER 1990 AND HAS BEEN TEETERING ON THE EDGE OF BANKRUPTCY THE PLAN DEVELOPED OVER THE LAST TWO YEARS IN CONSULTATION WITH SOME OF THE COMPANY'S LARGEST NOTEHOLDERS IS DESIGNED TO ELIMINATE VIRTUALLY ALL OF THE COMPANY'S DEBT INCLUDING 85 MILLION IN ANNUAL DEBT SERVICE OBLIGATIONS 615 MILLION OF BONDS OUTSTANDING AND 20 MILLION OF ACCRUED INTEREST ON THOSE BONDS CHIEF FINANCIAL OFFICER PETER PIZZA SAID IN AN INTERVIEW UNDER THE PLAN 16 5/8 SENIOR SUBORDINATED NOTES DUE 1992 AND 12 5/8 SUBORDINATED NOTES DUE 1996 WILL BE CANCELED IN EXCHANGE FOR 935 OF THE EQUITY IN THE COMPANY OF WHICH 569 WILL BE ISSUED TO THE HOLDERS OF THE SUBORDINATED NOTES AND 366 WILL BE ISSUED TO THE HOLDERS OF THE SENIOR SUBORDINATED NOTES CASH IN THE AMOUNT OF 5 MILLION WILL BE PAID TO HOLDERS OF SENIOR SUBORDINATED NOTES THE COMPANY WILL ISSUE 1 MILLION OF NEW SUBORDINATED NOTES PAYING 11 INTEREST TO HOLDERS OF SENIOR SUBORDINATED NOTES THE NOTES WILL BE PAID OFF SEPT 30 1993 SHAREHOLDERS WILL BE LEFT WITH 65 OF THE COMPANY'S STOCK OUTSTANDING INCLUDING 53 HELD BY MANAGEMENT AND INSIDERS WHO NOW HOLD ABOUT 32 OF THE COMPANY'S SHARES NEVERTHELESS EXECUTIVE VICE PRESIDENT ROBERT E LINKIN SAYS SHAREHOLDER RESPONSE SO FAR HAS BEEN FAVORABLE 9301190057 930119 BUSINESS BRIEF TELXON CORP COMPUTER CONCERN TRIPLES STAKE IN CHAIRMAN'S FIRM TELXON CORP SAID IT PAID 3 MILLION FOR AN ADDITIONAL 30 INTEREST IN A COMPUTER DEVELOPMENT CONCERN OWNED BY ITS CHAIRMAN INCREASING ITS STAKE TO 45 TELXON AGREED ON MARCH 18 1992 TO BUY AN INITIAL 15 STAKE IN TELETRANSACTION IN TWO TRANSACTIONS VALUED AT 17 MILLION TELETRANSACTION WHICH HAS DEVELOPED PENBASED COMPUTER SYSTEMS IS OWNED BY TELXON CHAIRMAN ROBERT F MEYERSON AND HIS FAMILY WE THOUGHT IT WAS IN THE COMPANY'S BEST INTEREST FROM A GROWTH STANDPOINT TO BE ABLE TO LOCK UP THAT TECHNOLOGY SAID DAN R WIPFF PRESIDENT AND CHIEF OPERATING OFFICER OF TELXON TELXON REPORTED A FISCAL THIRDQUARTER LOSS OF 91 MILLION OR 63 CENTS A SHARE COMPARED WITH NET INCOME OF 45 MILLION OR 31 CENTS A SHARE A YEAR EARLIER REVENUE WAS 489 MILLION DOWN FROM 532 MILLION A YEAR EARLIER THE LOSS REFLECTED 12 MILLION IN ONETIME CHARGES 9301190056 930119 BUSINESS BRIEF CINCINNATI BELL INC CELLULAR TECHNICAL SERVICES UNIT ENTER MARKETING PACT CINCINNATI BELL INFORMATION SYSTEMS AND CELLULAR TECHNICAL SERVICES INC AGREED TO JOINTLY MARKET AND DISTRIBUTE REALTIME BILLING AND ACCOUNTING INFORMATION SYSTEMS UNDER THE AGREEMENT CINCINNATI BELL INFORMATION SYSTEMS A UNIT OF CINCINNATI BELL INC WILL USE ITS MARKETING FORCE TO SELL CELLULAR TECHNICAL SERVICES' INFORMATION SYSTEMS GEARED TO THE CELLULAR INDUSTRY REALTIME INFORMATION SYSTEMS CAPTURE CALL INFORMATION AT THE SWITCH ALLOWING IMMEDIATE PROCESSING ACCORDING TO CELLULAR TECHNICAL SERVICES SEATTLE IMMEDIATE PROCESSING WILL ALLOW QUICKER PREVENTION OF CELLULAR FRAUD AND MORE EFFICIENT BILLING PRACTICES TRADITIONALLY INFORMATION ABOUT CELLULAR CALLS IS BATCHED OR GATHERED ON DATA TAPES AND SENT TO DATA PROCESSORS CINCINNATI BELL INFORMATION SYSTEMS ALSO SAID IT HAS BEGUN USING CELLULAR TECHNICAL SERVICES' BILLING AND ACCOUNT MANAGEMENT SYSTEMS IN ITS OWN OPERATIONS 9301190055 930119 BUSINESS BRIEF BCE INC STAKE IN SHL SYSTEMHOUSE TO BE SOLD FOR 65 MILLION BCE INC MONTREAL SAID IT WILL SELL ITS 22 STAKE IN SHL SYSTEMHOUSE INC FOR ABOUT 83 MILLION CANADIAN DOLLARS US65 MILLION UNDER AN UNDERWRITING AGREEMENT WITH GORDON CAPITAL CORP BCE PARENT OF BELL CANADA AND SYSTEMHOUSE LAST JUNE ABANDONED TALKS ON A PROPOSED STRATEGIC PARTNERSHIP THAT WOULD HAVE RAISED BCE'S STAKE IN THE OTTAWABASED COMPUTER SYSTEMS COMPANY TO 60 A BCE SPOKESMAN SAID THE DECISION TO SELL THE SYSTEMHOUSE SHARES IS PART OF BCE'S PROGRAM OF SHEDDING ASSETS OUTSIDE ITS CORE TELECOMMUNICATIONS BUSINESS JOHN OLTMAN SYSTEMHOUSE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY CONTINUES TO HAVE A PRETTY STRONG BUSINESS RELATIONSHIP WITH BCE GORDON CAPITAL WILL UNDERWRITE THE SALE OF BCE'S 97 MILLION SYSTEMHOUSE SHARES AT A NET PRICE OF C855 A SHARE BCE SAID SALES ARE TO TAKE PLACE FROM TIME TO TIME UNTIL THE CLOSING DATE OF FEB IN TRADING ON THE TORONTO STOCK EXCHANGE SYSTEMHOUSE CLOSED AT C9375 A SHARE UP 375 CANADIAN CENTS FOLLOWING YESTERDAY MORNING'S ANNOUNCEMENT 9301190054 930119 FOREIGN EXCHANGE PROFITTAKING SENDS DOLLAR TUMBLING AGAINST MARK IN THIN HOLIDAY TRADING BY CHARLENE LEE SPECIAL TO THE WALL STREET JOURNAL NEW YORK STEPPEDUP BOMBING RUNS BY USLED FORCES AGAINST IRAQI MISSILE SITES FAILED TO BUOY THE DOLLAR YESTERDAY AS PROFITTAKING SENT THE DOLLAR TUMBLING MORE THAN TWO PFENNIGS AGAINST THE MARK THE DOLLAR'S SLIDE WAS FURTHER AIDED BY A THIN HOLIDAY MARKET IN THE US AS WELL AS SOME APPREHENSION THAT THE WIDE GAP BETWEEN US AND EUROPEAN INTEREST RATES COULD WIDEN YET A VARIETY OF REPORTS FED FEARS THAT THE INTERESTRATE DIFFERENTIAL BETWEEN GERMANY AND THE US MIGHT GROW INCLUDING REMARKS FROM A DEUTSCHE BUNDESBANK OFFICIAL AND A NEWSPAPER ARTICLE SUGGESTING THAT US RATES MIGHT SOFTEN UNDER THE INCOMING CLINTON ADMINISTRATION A WIDELY RUMORED COORDINATED RATE CUT BETWEEN GERMANY AND FRANCE FAILED TO MATERIALIZE OVER THE WEEKEND WHICH ALSO SPARKED SOME DOLLAR SALES TRADERS AND ANALYSTS NOTED LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16135 MARKS DOWN 13 FROM 16357 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12550 YEN DOWN FROM 12608 YEN STERLING WAS TRADING AT 15510 UP SHARPLY FROM 15305 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16143 MARKS AND AT 12541 YEN MANY NORTH AMERICAN BANKS WERE CLOSED YESTERDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY AND THE INTERBANK MARKET GROUND TO A HALT WITH THE EARLY CLOSE OF CHICAGO'S INTERNATIONAL MONETARY MARKET THE DOLLAR'S INABILITY TO RALLY ON SAFEHAVEN BUYING AS PERSIAN GULF WAR ALLIES CONTINUED TO BOMB SUSPECTED MISSILE SITES IN IRAQ WAS THE FIRST HINT THAT THE DOLLAR MIGHT NOT BE TOO HEALTHY SAID RON PITTERS A FOREIGN EXCHANGE TRADER FOR STANDARD CHARTERED BANK OF LOS ANGELES TRADERS SAID PARTICIPANTS ALREADY HAD LOADED UP ON DOLLARS FRIDAY IN THE EVENT THAT HOSTILITIES IN THE MIDDLE EAST WOULD FLARE OVER THE WEEKEND AND ON WIDESPREAD BUT UNFOUNDED TALK THAT GERMANY AND FRANCE WOULD COORDINATE INTERESTRATE CUTS THE MARKET MAY BE A LITTLE COMPLACENT IN COMPLETELY IGNORING THE RISING TENSIONS IN IRAQ SAID GEOFFREY DENNIS INTERNATIONAL ECONOMIST AND STRATEGIST IN NEW YORK FOR JAMES CAPEL & CO BARRING AN OUTBREAK OF WAR HE AND OTHER OBSERVERS SAID THE DOLLAR PROBABLY WON'T SEE ANY ADDITIONAL FLIGHTTOQUALITY BUYING ON NEWS FROM IRAQ THE DOLLAR REALLY IS NOT GETTING ANY HELP FROM ANYBODY MR PITTERS SAID POINTING TO COMMENTS FROM BUNDESBANK VICE PRESIDENT HANS TIETMEYER IN A FRANKFURT SPEECH MR TIETMEYER EMPHASIZED THAT GERMANY'S INFLATION REMAINS ABOVE LEVELS THAT ARE ACCEPTABLE IN THE LONGERTERM AND REITERATED THE CENTRAL BANK'S GOAL OF DRIVING INFLATION OVER THE MEDIUMTERM TO BELOW A 2 RATE ALTHOUGH MR TIETMEYER'S STATEMENT WAS HARDLY A REVELATION TO THE MARKET IT WAS ENOUGH TO UNSETTLE SOME PLAYERS WHO HAD BOUGHT THE US CURRENCY ON SPECULATION THAT THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL WOULD EASE OFFICIAL RATES AS EARLY AS AFTER THURSDAY'S REGULAR TWICEMONTHLY MEETING DEALERS NOTED THAT AN ARTICLE IN YESTERDAY'S LOS ANGELES TIMES ALSO PROVIDED PLAYERS WITH A HANDY REASON TO TAKE SOME DOLLAR PROFITS THE ARTICLE CITING UNIDENTIFIED SOURCES IN THE CLINTON ADMINISTRATION SAID IMPORTANT AIDES TO PRESIDENTELECT CLINTON ARE CONSIDERING A POSSIBLE COORDINATED STRATEGY WITH THE FEDERAL RESERVE TO ATTACK THE BURGEONING US BUDGET DEFICIT THE EFFORT WOULD INCLUDE A FED EASING BY AS MUCH AS ONE PERCENTAGE POINT IN SHORTTERM INTEREST RATES TO KEEP THE US ECONOMY CHUGGING FORWARD WHILE THE WHITE HOUSE PURSUES A PROGRAM OF SPENDING CUTS AND TAX INCREASES THE LOS ANGELES TIMES REPORTED SUCH A STRATEGY THE NEWSPAPER NOTED WOULD REQUIRE UNPRECEDENTED COOPERATION FROM THE INDEPENDENT FED 9301190053 930119 INTERNATIONAL BRIEF SEGA ENTERPRISES LTD JAPANESE VIDEOGAME MAKER BOOSTS EARNINGS FORECASTS SEGA ENTERPRISES LTD A JAPANESE VIDEOGAME MAKER RAISED ITS EARNINGS FORECASTS FOR THE SECOND HALF AND YEAR ENDING MARCH 31 FOR THE YEAR SEGA SAID UNCONSOLIDATED SALES SHOULD TOTAL 341 BILLION YEN 27 BILLION UP 60 FROM 21332 BILLION YEN A YEAR EARLIER AND 66 HIGHER THAN THE 320 BILLION YEN EARLIER FORECAST THE COMPANY SAID IT FORESEES PRETAX PROFIT OF 55 BILLION YEN UP 64 FROM 3348 BILLION YEN A YEAR EARLIER AND 93 ABOVE THE 5030 BILLION YEN IT HAD FORECAST UNCONSOLIDATED NET INCOME FOR THE YEAR IS SEEN AT 2780 BILLION YEN UP 98 FROM 1401 BILLION A YEAR EARLIER AND 94 HIGHER THAN THE 2540 BILLION IT FORECAST SEGA SAID IT FORESEES HALFYEAR UNCONSOLIDATED SALES OF 17366 BILLION YEN 14 ABOVE ITS PRIOR FORECAST OF 15266 BILLION YEN PRETAX PROFIT IS SEEN AT 2762 BILLION YEN 21 HIGHER THAN ITS EARLIER CALL OF 2292 BILLION IT IS NOW LOOKING TO NET PROFIT OF 1403 BILLION YEN UP 21 FROM ITS EARLIER FORECAST OF 1163 BILLION 9301190052 930119 BUSINESS BRIEF BENEFICIAL CORP COMPANY IS HIRED TO ASSIST IN THE SALE OF MORTGAGE UNIT BENEFICIAL CORP SAID IT HIRED INVESTMENT BANKING COMPANY COHANE RAFFERTY SECURITIES INC TO ASSIST IN THE SALE OF ITS BENEFICIAL MORTGAGE CORP UNIT THE WILMINGTON DEL FINANCIAL SERVICES COMPANY EARLIER THIS MONTH SAID IT WOULD DISCONTINUE OPERATIONS OF BENEFICIAL MORTGAGE SAYING THE UNIT NEVER TURNED A PROFIT SINCE IT OPENED IN 1984 THE UNIT SERVICES A PORTFOLIO OF ABOUT 2 BILLION IN LOANS IN 1991 IT HAD A LOSS OF 19 MILLION THE UNIT'S 1992 LOSS IS EXPECTED TO BE ABOUT 10 MILLION BUT BENEFICIAL SAID YESTERDAY THAT SEVERAL OFFERS HAVE BEEN RECEIVED FOR BOTH THE ENTIRE UNIT AND FOR THE SERVICING PORTFOLIO THEREFORE IT HAS DECIDED TO CONTINUE OPERATING THE UNIT UNTIL IT IS SOLD BENEFICIAL SAID IT WOULD SELL THE SERVICING PORTFOLIO ALONE OR THE ENTIRE UNIT WHICHEVER MAXIMIZES PROCEEDS TO BENEFICIAL 9301190051 930119 CREDIT MARKETS TREASURY BOND FUTURES FINISH LITTLE CHANGED AS ACTIVITY IS LARGELY HALTED FOR KING HOLIDAY BY CLIFTON LINTON AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURY BOND FUTURES CLOSED LITTLE CHANGED YESTERDAY DURING AN ABBREVIATED TRADING SESSION THE TREASURY CASH MARKET WAS CLOSED FOR THE MARTIN LUTHER KING HOLIDAY AND OTHER US BOND MARKETS WERE QUIET A BOND FUTURE CONTRACT IS AN AGREEMENT TO BUY OR SELL A SPECIFIC AMOUNT OF TREASURY BONDS AT A PARTICULAR PRICE ON AN AGREEDUPON DATE IN THE FUTURE THE FUTURES MARKET REACTED LITTLE TO NEWS OF US MILITARY ATTACKS ON IRAQ ONE CHICAGO BOARD OF TRADE DEALER WHO WORKED THE SUNDAY NIGHT TRADING SESSION SAID THAT BOND FUTURES PRICES MAINTAINED A NARROW PRICE RANGE EVEN AS THE FIRST REPORTS OF THE ATTACKS REACHED THE TRADING PITS IRAQ DOESN'T SEEM TO BE A REAL CONCERN SAID DONALD PULLEN ASSISTANT VICE PRESIDENT FOR DEAN WITTER FUTURES & OPTIONS INC AT THE CBOT THE NEWS IS JUST NOT SURPRISING HE SAID THE PRESIDENTIAL INAUGURATION SCHEDULED FOR TOMORROW AND ITS IMPLICATIONS FOR THE BOND MARKETS SEEMED TO BE OF GREATER INTEREST AMONG DEALERS SHORTERTERM TREASURY FUTURES RALLIED LATE LAST WEEK ON BELIEFS THAT FEDERAL RESERVE POLICY IS AT LEAST ON HOLD IF NOT INCLINED TOWARD EASING THOSE FEELINGS LINGERED THROUGH YESTERDAY'S ACTION AS FUTURES PRICES HELD RELATIVELY STEADY NO LARGE NEW MUNICIPAL OR CORPORATE BOND DEALS WERE PRICED YESTERDAY MUNICIPAL BONDS WERE UP SLIGHTLY IN SLOW TRADING WITH THE MOST ACTIVELY TRADED ISSUES UP 1/8 POINT THE MUNICIPAL MARKET WILL HAVE A RELATIVELY LIGHT CALENDAR THIS WEEK WITH MOST TRADING EXPECTED IN THE EARLIER PART OF THE WEEK THE LARGEST OFFERING THIS WEEK IS ANTICIPATED TO BE THE GUAM AIRPORT AUTHORITY'S 242 MILLION ISSUE OF REVENUE BONDS SMITH BARNEY HARRIS UPHAM & CO IS THE MANAGING UNDERWRITER FOR THE ISSUE PRICES OF TWO NEW JUNK BOND ISSUES ROSE IN LIGHT TRADING YESTERDAY UNDERSCORING INVESTORS' STRONG APPETITE FOR HIGHERYIELDING SECURITIES IN BROADER SECONDARY TRADING SEASONED JUNK BONDS ENDED LITTLE CHANGED IN THIN ACTIVITY INVESTMENTGRADE ISSUES WERE LITTLE CHANGED MEANWHILE NEW OFFERINGS BY BALLY'S HEALTH & TENNIS CORP AND KROGER CO ROSE SOON AFTER BEING FREED FOR SECONDARY TRADING BALLY'S SENIOR SUBORDINATED NOTES DUE 2003 WHICH WERE PRICED LATE FRIDAY AT 100 ROSE TO 100 1/4 YESTERDAY THE ISSUE'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL FROM 13 TO 1295 THE 200 MILLION ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED FRIDAY THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP PROCEEDS FROM THE OFFERING WILL BE USED TO REDEEM THE COMPANY'S 78 MILLION OF 13625 SENIOR SUBORDINATED DEBT SAID DUFF & PHELPS CREDIT RATING CO WHICH RATED THE ISSUE SINGLEBPLUS THE REMAINDER WILL BE USED TO PAY DOWN BANK BORROWING AND TO PAY A 15 MILLION DIVIDEND TO THE ISSUER'S PARENT BALLY MANUFACTURING CORP MEANWHILE KROGER SENIOR SECURED DEBENTURES WHICH WERE PRICED FRIDAY AT PAR TO YIELD 925 WERE SEEN BID AT 101 TO YIELD 911 TRADERS SAID TRADERS SAID THE TWO OFFERINGS APPEARED AIMED AT DIFFERENT SPECIES OF JUNK BOND INVESTORS KROGER HAS BEEN AGGRESSIVELY CLEANING UP ITS BALANCE SHEET BY REFINANCING HIGHER COUPON DEBT LEADING MANY INVESTORS TO BELIEVE THE SUPERMARKET AND CONVENIENCE STORE COMPANY WILL BE UPGRADED SOON TO INVESTMENTGRADE STATUS A DEAL OF THIS TYPE WOULD APPEAL TO CROSSOVER BUYERS OR TRADITIONAL INVESTMENTGRADE INVESTORS WHO DABBLE IN BETTERQUALITY JUNK BONDS FOR THE EXTRA YIELD ALTERNATELY THE BALLY'S OFFERING APPEALED TO SEASONED JUNK BUYERS WHO ARE MORE WILLING TO STOMACH SPECULATIVE CREDIT RISK IN RETURN FOR A DOUBLEDIGIT COUPON TRADERS SAID 9301190050 930119 BUSINESS BRIEF SPRINT CORP FIRM ASKS SUPPLIERS TO BID FOR NEW TRANSMISSION GEAR SPRINT CORP ASKED EQUIPMENT SUPPLIERS TO SUBMIT BIDS FOR A NEW LINE OF HIGHCAPACITY FIBEROPTIC TRANSMISSION GEAR TO BE USED IN A 500 MILLION FIVEYEAR PROJECT SPRINT BASED IN WESTWOOD KAN SAID IT WILL INSTALL THE SOCALLED SYNCHRONOUS OPTICAL NETWORK OR SONET EQUIPMENT IN ITS NATIONWIDE NETWORK AND WILL ANNOUNCE THE WINNING SUPPLIERS BY THE END OF JUNE THE TELECOMMUNICATIONS COMPANY SAID THE SONET EQUIPMENT WILL LET IT PROVIDE TRANSMISSION AT 600 MILLION BITS A SECOND THAT'S 12 TIMES THE RATE OF CURRENT SYSTEMS AND THAT SHOULD ENABLE COMPANIES AND ORGANIZATIONS TO LINK DISPARATE OFFICES IN ONE HIGHCAPACITY MULTIMEDIA NETWORK FOR DATA AND HIGHQUALITY TELEVISION TRANSMISSION SPRINT SAID TRAFFIC CAN ALSO BE REROUTED AROUND A TROUBLE SPOT IN LESS THAN A SECOND A SPOKESMAN SAID THE NETWORK COMBINED WITH SPRINT'S INVESTMENTS IN TRANSOCEANIC FIBEROPTIC CABLES SHOULD ALLOW IT TO OFFER INTERNATIONAL SONET TRANSMISSION SERVICES FROM EUROPE THROUGH THE US TO THE PACIFIC RIM 9301190049 930119 REYNOLDS METALS POSTS LOSS OF 1521 MILLION FOR THE 4TH QUARTER RICHMOND VA REYNOLDS METALS INC WEIGHED DOWN BY ONETIME CHARGES FOR ENVIRONMENTAL AND RESTRUCTURING COSTS AND FOR ADOPTING NEW ACCOUNTING STANDARDS FOR RETIREE BENEFITS SWUNG TO A LOSS IN THE FOURTH QUARTER THE ALUMINUM CONCERN REPORTED A LOSS OF 1521 MILLION OR 255 A SHARE IT HAD NET INCOME OF 237 MILLION OR 40 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE FELL 64 TO 135 BILLION FROM 145 BILLION EARNINGS BEFORE THE CHARGES AMOUNTED TO 111 MILLION OR 18 CENTS A SHARE A 53 DROP FROM THE PREVIOUS YEAR ANALYSTS ATTRIBUTED THE DECLINE TO THE WORSENING GLOBAL ALUMINUM INDUSTRY THE RESULTS INCLUDED PREVIOUSLY ANNOUNCED CHARGES OF 155 MILLION OR 260 A SHARE FOR ENVIRONMENTAL AND RESTRUCTURING COSTS AND 82 MILLION OR 13 CENTS A SHARE FOR A NEW FINANCIAL ACCOUNTING STANDARDS BOARD RULE THAT REQUIRES EMPLOYERS TO FULLY ACCRUE THE PROJECTED COST OF POSTRETIREMENT BENEFITS TO EMPLOYEES FOR THE YEAR THE COMPANY REPORTED A LOSS OF 7488 MILLION OR 1256 A SHARE IT HAD EARNINGS OF 1541 MILLION OR 260 A SHARE IN 1991 REVENUE FELL 22 TO 566 BILLION FROM 578 BILLION THE LATEST RESULTS INCLUDED CHARGES OF 640 MILLION OR 1073 A SHARE FOR THE CUMULATIVE EFFECT OF THE ACCOUNTING ADJUSTMENT ON RETIREE BENEFITS AND 801 MILLION OR 296 A SHARE FOR RESTRUCTURING AND ENVIRONMENTAL COSTS ALSO INCLUDED WAS A 226 MILLION GAIN ON THE SALE OF THE COMPANY'S ESKIMO PIE CORP UNIT WITHOUT THE ONETIME ITEMS REYNOLDS WOULD HAVE REPORTED EARNINGS OF 771 MILLION OR 129 CENTS A SHARE DOWN 50 FROM 1991 9301190048 930119 LEISURE & ARTS BOOKSHELF THE CRITIC AT HIS BEST BY DAVID SHRIBMAN LIKE PERICLES BURKE MACHIAVELLI AND YOGI BERRA HL MENCKEN IS MORE QUOTED THAN READ THESE DAYS VALUED FOR HIS EPIGRAMS RATHER THAN FOR THE EPIC BREADTH OF HIS LITERARY SCHOLARSHIP AND COMMENTARY SO THE APPEARANCE OF MY LIFE AS AUTHOR AND EDITOR KNOPF 450 PAGES 30 A WORKINPROGRESS AND THEN IN HIBERNATION FOR NEARLY THREE DOZEN YEARS IS A LITERARY EVENT OF SOME MOMENT THIS IS MUCH MORE THAN SHARDS OF WHAT MENCKEN SAID BELONGED NOT ONLY TO MY PERSONAL CURRICULUM VITAE BUT ALSO TO THE LITERARY HISTORY OF THE US IN MY TIME ALTOGETHER SOME 1025 PAGES OF DOUBLESPACED TYPESCRIPT HAVE BEEN BROUGHT INTO THE LIGHT OF PRINT AFTER A LONG SIT IN BALTIMORE'S ENOCH PRATT FREE LIBRARY UNDER MENCKEN'S EXPLICIT INSTRUCTION THAT THEY LIE THERE UNDISTURBED FOR 35 YEARS AFTER HIS DEATH WHEN EVERYONE MENTIONED IN THEM WOULD BE SAFELY DEAD SO HERE IS SOMETHING NEW FROM THE SAGE OF BALTIMORE THE CYNIC LAUREATE OF THE AMERICAN CENTURY HIMSELF DEAD SINCE 1956 JONATHAN YARDLEY THE DEFT EDITOR WHO DISTILLED THESE MEMOIRSINTHEMAKING POINTS OUT THAT THOUGH MY LIFE COVERS ONLY A THIRD OF MENCKEN'S LIFE IT INCLUDES NEARLY ALL THE PEOPLE WHO MARCHED THROUGH HIS CAREER THIS IS THE MATURE POLISHED MENCKEN NOT MUCH MELLOWED BUT THE MASTER OF HIS CRAFT AND OF HIMSELF SWINDLERS OF ALL SORTS HAVE ALWAYS INTERESTED ME HE WROTE PROVING THIS WITH INCOMPARABLE BARBS AND INSULTS THIS IS HIS DESCRIPTION OF THE NOSE OF JAMES HUNEKER THE MUSIC CRITIC AND AUTHOR WHO HAD A TASTE FOR A PILSNER BY THE TIME I KNEW HIM THE NOSE HAD BEEN CONSIDERABLY DAMAGED BY THE ATTRITION OF THE ELEMENTS AND THE EFFECTS OF ALCOHOL AND WAS A MAUVE SHADE AND RATHER SQUISHY IN TEXTURE ITS CAPILLARIES STOOD OUT SHARPLY OF HENRY HOLT THE PUBLISHER HE WROTE MOST OF HIS OPINIONS AS I SOON LEARNED WERE RUBBISH AND OF BUSINESSMEN AS A CLASS I BELIEVED THAT MOST OF THEM WERE THIEVES AND THAT ALL OF THEM WERE FRAUDS AMUSING AS ALL THAT IS THE MOST FASCINATING ELEMENT IS THE LIGHT THE VOLUME SHEDS ON MENCKEN HIMSELF EVEN AS A BOY I NEVER HAD ANY BELIEF IN RELIGION AND EVEN AS A YOUTH I NEVER WENT THROUGH THE SOCIALIST GREEN SICKNESS THAT WAS THEN ALMOST UNIVERSAL HE WROTE I WAS AGAINST BRYAN THE MOMENT I HEARD OF HIM AND MY INTEREST IN ROOSEVELT 1 WAS ALWAYS BORN OF DELIGHT IN THE MOUNTEBANK NOT OF BELIEF IN THE PROPHET HE WROTE THAT THE MOST POWERFUL INFLUENCE ON HIS THINKING CAME FROM THOMAS HENRY HUXLEY WHO TAUGHT ME TO DISTRUST MORAL CERTAINTY AND IN PARTICULAR TO BE VERY SUSPICIOUS OF THOSE WHO HAD IT POWERFUL TOO ARE HIS MUSINGS ON HIS IDENTITY AS A GERMANAMERICAN WHICH WAS TO RESULT IN ENORMOUS DISCOMFORT FOR HIM DURING THE TWO WORLD WARS HE SAID THAT HE LIKE GERMANY'S LEADERS HAD GRAVE DOUBTS ABOUT DEMOCRACY I TOO FELT AN INSTINCTIVE ANTIPATHY TO THE WHOLE PURITAN SCHEME OF THINGS WITH ITS GROSS AND NAUSEATING HYPOCRISIES ITS IDIOTIC THEOLOGIES ITS MORAL OBSESSIONS ITS PERVASIVE PHILISTINISM AS THE YOUNG EDITOR OF A MAGAZINE CALLED THE SMART SET HE APPEALED TO THE MAN OR WOMAN WHO HAS LIVED IN LARGE CITIES AND READ GOOD BOOKS AND SEEN GOOD PLAYS AND HEARD GOOD MUSIC AND IS TIRED OF POLITICIANS REFORMERS AND THE NEWSPAPERS FOR THESE READERS AND HUNDREDS OF PRETENDERS HE PUBLISHED JAMES JOYCE EZRA POUND EDGAR LEE MASTERS CARL SANDBURG VACHEL LINDSAY SHERWOOD ANDERSON AND THEODORE DREISER AND IT IS THE APPEARANCE OF SUCH FOLK THAT GIVES THIS BOOK HISTORICAL VALUE HIS RELATIONSHIP WITH DREISER IN PARTICULAR WAS TEMPESTUOUS ENDING BADLY AND PROMPTING MENCKEN TO CONCLUDE THAT THE AUTHOR OF SISTER CARRIE WAS AN EXTREMELY IGNORANT MAN WITH THE SORT OF MIND THAT SHIED AWAY ALMOST INSTINCTIVELY FROM REALISTIC THINKING HE REFERRED TO F SCOTT FITZGERALD SIMPLY AS FITZ AND SAYS OF HIS DAUGHTER I OFTEN THINK OF THIS POOR GIRL'S UNHAPPY YOUTH WITH AN INSANE MOTHER AND A DIPSOMANIC FATHER AND OF HER BALEFUL HERITAGE THE QUESTION OF MENCKEN'S ALLEGED ANTISEMITISM IS INEVITABLY RAISED BY THESE WRITINGS MR YARDLEY THE EDITOR OF THIS VOLUME CONCLUDES THAT MENCKEN MAY BE CONSIDERED AN ANTISEMITE BY THE STANDARDS OF OUR TIME BUT PROBABLY WASN'T ONE BY THE STANDARDS OF HIS OWN STILL THERE ARE DISQUIETING PASSAGES AND THE CONTEMPORARY READER IS LEFT FEELING UNEASY OF COURSE MANY OF MENCKEN'S READERS TAKE ENORMOUS PLEASURE IN THE PUTDOWN DELIVERED WITH PANACHE AN ART FORM THAT SPANS THE DECADES AND HAVE LITTLE INTEREST IN THE CONTENT OF MENCKEN'S COMMENTARY HE CONSIDERED THE MEMBERS OF THE ALGONQUIN ROUND TABLE FOR EXAMPLE AS LITERATI OF THE THIRD FOURTH AND FIFTH RATE SAYING THAT HE AND GEORGE JEAN NATHAN HIS PARTNER AT THE SMART SET REGARDED ALL SAVE A FEW AS HOLLOW FRAUDS AND AVOIDED THEM AS MUCH AS POSSIBLE THERE IS PLENTY MORE OF THIS SORT OF STUFF ALL DEFTLY DELIVERED BY A MAN WHO COULD NOT BELIEVE THE NUMBER OF SCOUNDRELS NUISANCES QUACKS IMPLACABLE ENEMIES INCURABLE JACKASSES AND VERMIN THAT GOOD FORTUNE HAD SENT HIM TO BE SKEWERED THERE'S A STUPID PRISSY FELLOW A MERE BLOB AN ARRANT BLUENOSE AND A LITERARY PROSTITUTE AND SOMEONE CHARACTERIZED AS ONLY TOO PLAINLY A FOOL WHAT READER COULD ASK FOR MORE IN ONE BOOK MR SHRIBMAN WAS RECENTLY APPOINTED ASSISTANT MANAGING EDITOR AND WASHINGTON BUREAU CHIEF OF THE BOSTON GLOBE 9301190047 930119 BUSINESS BRIEF MOTOROLA INC SOUTH KOREA IMPOSES TAX OF 202 MILLION ON A UNIT SOUTH KOREA'S NATIONAL TAX ADMINISTRATION IMPOSED A PUNITIVE TAX OF 16 BILLION WON 202 MILLION ON MOTOROLA KOREA LTD FOR ALLEGEDLY ILLEGAL TRANSFER PRICING THE COMPANY PAID THE TAX IN AUGUST AND APPEALED TO THE TAX ADMINISTRATION THEN BUT ITS APPEAL WAS DENIED IN NOVEMBER NEWS OF THE TAX LEAKED TO THE SOUTH KOREAN PRESS YESTERDAY MOTOROLA KOREA LTD A UNIT OF MOTOROLA INC SCHAUMBURG ILL SAID IT DOESN'T AGREE WITH THE ASSESSMENT AND BELIEVES THAT ITS TRANSFERPRICING METHODS ARE CONSISTENT WITH SOUTH KOREAN REGULATIONS MOTOROLA INTENDS TO VIGOROUSLY CONTEST THIS ASSESSMENT AND IS PURSUING ALL AVAILABLE REMEDIES PERMITTED UNDER KOREAN LAW A COMPANY STATEMENT SAID THE TAX INVESTIGATION THAT STARTED LAST JANUARY REPORTEDLY WAS BASED ON SUSPICION THAT MOTOROLA HAD FUNNELED PROFIT FROM SOUTH KOREA TO ITS US HEADQUARTERS BY MANIPULATING EXPORT MARGINS DURING 1989 AND 1990 THE TAX IMPOSED ON MOTOROLA IS BELIEVED TO BE THE BIGGEST EVER PLACED ON A FOREIGN BUSINESS CONCERN BY SOUTH KOREA 9301190046 930119 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION AGAIN LOWERED ITS FORECAST FOR ECONOMIC GROWTH IN THE 12NATION BLOC THIS YEAR BUT PRIVATESECTOR ECONOMISTS SAID THE PREDICTION WAS STILL TOO OPTIMISTIC IT EXPECTS GROSS DOMESTIC PRODUCT TO EXPAND AN INFLATIONADJUSTED 08 THIS YEAR DOWN FROM 11 LAST YEAR THIS MARKED THE LATEST IN A SERIES OF DOWNWARD REVISIONS BY THE COMMISSION WHICH LAST MONTH FORECAST 1993 GROWTH OF BETWEEN 1 AND 15 THE LATEST REDUCTION REFLECTS THE GERMAN ECONOMY'S RECENT DETERIORATION MEANWHILE FINANCE MINISTERS DISCUSSED PREPARATIONS FOR THE EC'S MODEST INITIATIVE TO STIMULATE GROWTH USING LOANS AND LOAN GUARANTEES FOR INFRASTRUCTURE PROJECTS AND SMALL BUSINESS TO COMBAT A RISE IN THE UNEMPLOYMENT RATE NOW 10 THE FINANCE CHIEFS ALSO EXPRESSED SUPPORT FOR IRELAND'S EFFORTS TO AVOID A DEVALUATION OF ITS CURRENCY AND APPROVED AN EC LOAN OF EIGHT BILLION EUROPEAN CURRENCY UNITS 962 BILLION TO ITALY TO HELP REBUILD ITS FOREIGNCURRENCY RESERVES MALAYSIA APPROACHED A CONSTITUTIONAL CRISIS AFTER THE NINE ROYAL SULTANS REJECTED THE GOVERNMENT'S PROPOSED AMENDMENTS TO CURB THEIR PRIVILEGES AND LEGAL IMMUNITY UNDETERRED PRIME MINISTER MAHATHIR MOHAMAD SENT PARLIAMENT THE BILL WHICH WAS ADVANCED FINAL APPROVAL IS EXPECTED TOMORROW A COURT BATTLE COULD FOLLOW PROLONGING THE POLITICAL FIGHT AND FURTHER TESTING THE STRAINED ALLEGIANCES OF THE COUNTRY'S MALAY MAJORITY TO THE REGIONAL MONARCHS WHO HAVE BEEN ACCUSED OF INTERFERING IN THE CENTRAL GOVERNMENT THE POLITICAL FIGHT COMES AS MALAYSIA'S ECONOMIC STEAMROLLER IS SLOWING DOWN AND INVESTORS ARE CUTTING BACK LAND IN SOUTH KOREA DROPPED 13 ON AVERAGE LAST YEAR THE FIRST DECLINE SINCE THE NUMBERS WERE FIRST COLLECTED IN 1975 THE GOVERNMENT CITED ITS EFFORTS TO CRACK DOWN ON CHRONIC SPECULATION IN REAL ESTATE AND AN INCREASE IN HOUSING UNITS IN SUBURBAN SEOUL IN THE PAST 17 YEARS LAND PRICES HAVE JUMPED AS MUCH AS 15FOLD FAR OUTPACING INFLATION LAST YEAR PRICES IN SEOUL THE CAPITAL DROPPED 28 NATIONWIDE PRICES FELL 22 FOR RESIDENTIAL PLOTS 14 EACH FOR COMMERCIAL AND INDUSTRIAL SITES AND 06 FOR FARM LAND TWOTHIRDS OF DANISH VOTERS IN A NEW POLL FAVOR THE EUROPEAN COMMUNITY UNITY TREATY UP FROM 58 IN A DECEMBER SURVEY IN A REFERENDUM LAST JUNE DANES NARROWLY REJECTED THE TREATY ON EC POLITICAL ECONOMIC AND MONETARY UNION DENMARK WON SOME EXEMPTIONS IN DECEMBER AND IS TO HOLD A SECOND REFERENDUM IN APRIL BRITAIN HASN'T ACTED ON THE ACCORD BUT THE 10 OTHER EC MEMBERS HAVE APPROVED IT THE LATEST SURVEY IN DENMARK PUBLISHED IN A COPENHAGEN NEWSPAPER WAS CONDUCTED JAN 1112 BEFORE THE COUNTRY'S PRIME MINISTER RESIGNED IN A SCANDAL BRAZIL'S PLANNING MINISTER PAULO HADDAD WHO HAS BEEN ACTING FINANCE CHIEF SINCE GUSTAVO KRAUSE'S RESIGNATION IN DECEMBER WILL MOVE FULL TIME TO THE FINANCE MINISTRY AT THE END OF THE MONTH CONFIRMING HIS EMERGENCE AS THE COUNTRY'S ECONOMIC STRONGMAN HIS SUCCESSOR AT THE PLANNING MINISTRY WHO IS LIKELY TO BE A WOMAN IS TO BE ANNOUNCED THIS MONTH TO HELP ITS BUDDING SPACE PROGRAM TAIWAN PLANS A VENTURE WITH CHINA TO DEVELOP SATELLITE COMMUNICATION TECHNOLOGY CHINA DEVELOPMENT CORP PARTLY OWNED BY TAIWAN'S RULING NATIONALIST PARTY SAID IT WOULD JOIN AN UNIDENTIFIED CHINESE PARTNER TO ESTABLISH A COMPANY IN HONG KONG TO PREPARE FOR THE VENTURE CHINA DEVELOPMENT WHICH HAS INVESTED IN VARIOUS TAIWAN COMPANIES TO UPGRADE INDUSTRIES STILL NEEDS SPECIFIC APPROVAL FROM THE GOVERNMENT TAIWAN IN 1991 APPROVED A 15YEAR SPACE PROGRAM TO BUILD THREE SATELLITES FOR A TOTAL OF 540 MILLION THE FIRST SATELLITE IS TO BE LAUNCHED IN 1997 CHINESE PREMIER LI PENG HAS INSTRUCTED BANKS AND FINANCIAL INSTITUTIONS TO TIGHTEN LENDING IN A BID TO HELP PREVENT THE ECONOMY FROM OVERHEATING THE GOVERNMENT IS WORRIED ABOUT INFLATION FOLLOWING LAST YEAR'S GALLOPING ECONOMIC GROWTH FUELED PARTLY BY BANK LENDING AND BY A BURGEONING MONEY SUPPLY WHICH MR LI SAID MUST BE REINED IN CHINESE BANKS LENT 360 BILLION YUAN 6164 BILLION LAST YEAR UP 20 FROM A YEAR EARLIER WHILE MONEY THAT WAS PUT INTO CIRCULATION DOUBLED TO MORE THAN 100 BILLION YUAN THE RAPID GROWTH IN MONEY SUPPLY WAS ATTRIBUTED TO AN INVESTMENT EXPLOSION IN FIXED ASSETS WHICH SOARED 33 LAST YEAR TO 730 BILLION YUAN AND RAISED THE SPECTER OF HIGH INFLATION THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK INTENDS TO SCRUTINIZE BOND ISSUES THIS YEAR TO PREVENT WHAT IT TERMED INDISCRIMINATE INVESTMENT IN FIXED ASSETS ALSO IT WILL REQUIRE SPECIAL APPROVAL FOR BANKS TO EXCEED CREDIT QUOTAS TANE IKAI BELIEVED TO BE JAPAN'S OLDEST PERSON OBSERVED HER 114TH BIRTHDAY MIRRORS HAVE BEEN INSTALLED IN THE PHILIPPINES' PRESIDENTIAL PALACE TO WARD OFF EVIL SPIRITS SAID TO BE RESIDING IN THREE LARGE SHADE TREES ON THE PALACE GROUNDS GEOMANCERS WHO RECOMMEND CHANGES IN BUILDINGS TO ASSURE GOOD LUCK HAD ALSO URGED FELLING THE TREES OR MOVING THE PRESIDENT'S OFFICE TO END THE COUNTRY'S SPATE OF BAD LUCK 9301190045 930119 STOCK CERTIFICATES GET A MAKEOVER FOR THE '90S BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL FOR A WINDOW ON THE CHANGES SWEEPING CORPORATE AMERICA TAKE A LOOK AT SOME STOCK CERTIFICATES COMPANIES HAVE ALWAYS USED THE CERTIFICATES TO PROJECT THEIR IMAGE AND ASPIRATIONS FOR YEARS THE VIGNETTES WERE DOMINATED BY CLASSICAL FIGURES OFTEN BARECHESTED MEN AND SYMBOLS OF INDUSTRIAL MIGHT WHEN YOU SAW SOMETHING CLASSICAL IT SUGGESTED THE COMPANY WAS OLD AND ENDURING SAYS STANLEY KREITMAN PRESIDENT OF AMERICAN BANKNOTE CO NORTH AMERICA'S LARGEST PRIVATE PRINTER OF STOCK AND BOND CERTIFICATES NOW CERTIFICATES ARE CHANGING BECAUSE COMPANIES WANT TO HAVE A MORE MODERN IMAGE TAKE RELIANCE ELECTRIC CO ITS ORIGINAL CERTIFICATE DESIGNED IN THE 1950S DEPICTED A VIBRANT INDUSTRIAL LANDSCAPE WITH FACTORIES BELCHING SMOKE BUT ON THE COMPANY'S NEW CERTIFICATE ISSUED LAST YEAR THE SMOKE IS GONE WE WANTED TO SHOW OUR SENSITIVITY TO THE ENVIRONMENT AND OUR ROLE AS A RESPONSIBLE CORPORATE CITIZEN SAYS KELLY TOMPKINS RELIANCE'S DIRECTOR OF INVESTOR RELATIONS KMART CORP'S STOCK CERTIFICATE USED TO SHOW A WOMAN AND A LITTLE GIRL HAPPILY LEAVING ONE OF THE RETAILER'S STORES WITH A FULL SHOPPING CART NO MORE LAST YEAR KMART BANISHED THE MOTHERDAUGHTER SCENE AS PART OF A MASSIVE IMAGE OVERHAUL THAT INCLUDES A SNAPPY NEW CORPORATE LOGO AND REFURBISHED STORES THE STOCK CERTIFICATE NOW FEATURES MALE AND FEMALE EXECUTIVES SILHOUETTED AGAINST KMART'S MODERN CORPORATE HEADQUARTERS KMART'S IMAGE WAS SUFFERING SAYS MARY LORENCZ MANAGER OF PUBLIC COMMUNICATIONS OUR CUSTOMERS TOLD US THEY WANTED A MORE MODERN MORE FUN PLACE TO SHOP MODERNIZING THE LOGO AND THE CERTIFICATE WAS A SIGNAL TO OUR CUSTOMERS WE WERE SERIOUS ABOUT CHANGING PLAYBOY ENTERPRISES INC'S PLAYMATE ALSO HAS FALLEN VICTIM TO PROGRESS AT LEAST IN THE DESIGN OF ITS STOCK CERTIFICATE PLAYBOY DUMPED THE NUDE IMAGE OF MISS FEBRUARY 1971 FROM ITS CERTIFICATE IN 1990 THE NEW VIGNETTE A WOMAN IN A LONG FLOWING DRESS HOISTING THE WORLD AGAINST A SKYLINE OF FAMOUS BUILDINGS FROM AROUND THE GLOBE PLAYBOY IS STILL A COMPANY THAT CELEBRATES BEAUTIFUL WOMEN AND IT'S NOT ASHAMED OF THAT SAYS COMPANY SPOKESWOMAN JILL CHUKERMAN THE CHANGE WAS SIMPLY AN ATTEMPT TO MODERNIZE THE CERTIFICATE BY HIGHLIGHTING THE PLAYBOY'S NEW GLOBAL STRATEGIES BUT MS CHUKERMAN CONCEDES THE COMPANY MAY HAVE HAD ANOTHER MOTIVE FOR THE CHANGE IT MAY HAVE BEEN TO DISCOURAGE SINGLESHARE PURCHASES SHE SAYS A LOT OF PEOPLE WERE BUYING ONE SHARE OF STOCK BECAUSE THEY WANTED THE CERTIFICATE REVISING A CERTIFICATE CAN BE COSTLY MR KREITMAN OF AMERICAN BANKNOTE SAYS COMPANIES PAY BETWEEN 7000 AND 10000 FOR AN ORIGINAL ENGRAVING COMPANIES SEEKING A NEW LOOK OFTEN OPT FOR A STANDARD PREDESIGNED VIGNETTE ESPECIALLY AS FEWER INVESTORS ACTUALLY HOLD CERTIFICATES ANY MORE BECAUSE OF COMPUTERIZED RECORD KEEPING OVER THE YEARS COMPANIES HAVE BEEN REQUIRED TO UPGRADE CERTIFICATES IN THE 1950S THE NEW YORK STOCK EXCHANGE BEGAN URGING COMPANIES TO INCLUDE A HUMAN FIGURE IN THEIR STOCK VIGNETTES THE REASON SKIN TONES ARE PARTICULARLY DIFFICULT TO COUNTERFEIT BY 1963 ALL NEW CERTIFICATES WERE REQUIRED TO CARRY A HUMAN FORM BUT WHILE THERE ARE A LOT OF REASONS COMPANIES ADOPT NEW STOCK CERTIFICATES SOME INVESTORS FIND IT PROFITABLE TO HANG ON THE OLD ONES STEPHEN GOLDSMITH EXECUTIVE VICE PRESIDENT OF AUCTIONEERS RM SMYTHE SAYS COLLECTORS WILL PAY AS MUCH AS 300 FOR PLAYBOY'S ORIGINAL PLAYMATE CERTIFICATE AN ORIGINAL STANDARD OIL CO CERTIFICATE SIGNED BY JOHN D ROCKEFELLER TO BE OFFERED THE END OF THIS WEEK AT SMYTHE'S ANNUAL STOCK AND BOND AUCTION IN STRASBURG PA IS EXPECTED TO BRING BETWEEN 11000 AND 15000 THE EARLY ONES ARE DEFINITELY MORE DESIRABLE TO COLLECTORS MR GOLDSMITH SAYS IN THE OLD DAYS THE MAJESTY AND GLORY OF THE COMPANY WAS REFLECTED IN THE CERTIFICATES BUT THAT'S RARELY SEEN TODAY MAYBE NOT OR MAYBE COMPANIES AND INVESTORS JUST HAVE DIFFERENT IDEAS TODAY ABOUT WHAT CONSTITUTES MAJESTY AND GLORY IN THE MOVIES LONG AGO A SIGN OF PROGRESS WAS LOTS OF SMOKE COMING OUT OF FACTORIES AND POWER PLANTS SAYS ROBERT H KNUTH ASSISTANT VICE PRESIDENT AT WISCONSIN PUBLIC SERVICE CORP BUT TODAY HE SAYS IF YOU LOOK AT OUR SMOKESTACKS YOU DON'T SEE ANYTHING COMING OUT YOU WON'T FIND IT ON THE COMPANY'S BOND CERTIFICATES EITHER RYDER SYSTEMS INC DROPPED THE CLASSICAL LOOK BACK IN 1987 WHEN IT REPLACED TWO HALFCLAD ADONISES FOR A BUSINESSLIKE MAN AND WOMAN THESE ARE SERIOUSLOOKING PROFESSIONALS MR AND MRS AMERICA OF THE 1980S GAZING RESOLUTELY OUT INTO THE FUTURE SAYS JAMES M HERRON SENIOR EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL AT RYDER WE FELT WE WANTED TO PROJECT A MORE UPTODATE IMAGE PEOPLE IN THE BUSINESS OF IMAGEMAKING TELL YOU THIS IS IMPORTANT ACME METALS INC REMODELED ITS CERTIFICATE TO REFLECT ITS DREAMS OF CONQUERING WORLD MARKETS IT REPLACED A BLAST FURNACE WITH TWO GLOBES EVEN THOUGH EXPORTS CURRENTLY ACCOUNT FOR ONLY ABOUT 5 OF SALES WE'RE DEFINITELY NOT SATISFIED WITH WHERE WE ARE IN TERMS OF EXPORTS SAYS CHARLES NEKVASIL DIRECTOR OF INVESTOR RELATIONS WE'LL TAKE OUR SHOT AT THE WORLD STILL SOME COMPANIES ARE QUITE HAPPY WITH THEIR EXISTING IMAGES FORD MOTOR CO FOR INSTANCE HAS NO PLANS TO ABANDON THE ENGRAVING OF HENRY FORD WITH HIS FIRST CAR THE 1896 QUADRICYCLE THAT ADORNS ITS STOCK CERTIFICATE IT'S AN APPROPRIATE REPRESENTATION OF FORD AND THE MOTOR INDUSTRY SAYS FORD SPOKESMAN JOHN SPELICH NO ONE HAS SUGGESTED THAT IT HAS BECOME DATED OR INAPPROPRIATE FOR A COMPANY LIKE FORD 9301190044 930119 BUSINESS BRIEF JAMESWAY CORP CREDIT PACT COULD PROVIDE LENDERS WITH STAKE IN FIRM JAMESWAY CORP SAID IT SIGNED AGREEMENTS WITH ITS LENDERS TO EXTEND CREDIT AN ADDITIONAL THREE YEARS WHILE GIVING THEM WARRANTS FOR SHARES THAT COULD GIVE THEM A 10 STAKE IN THE COMPANY JAMESWAY'S REVOLVING LINE OF CREDIT HAS BEEN EXTENDED THROUGH JAN 31 1996 WITH ITS CURRENT LENDERS MARINE MIDLAND BANK IN NEW YORK FIRST FIDELITY BANK IN NEWARK NJ AND HARRIS TRUST & SAVINGS BANK IN CHICAGO JAMESWAY HEADQUARTERED IN SECAUCUS NJ IS A MIDATLANTIC AREA DISCOUNT DEPARTMENT STORE CHAIN THE AGREEMENT PROVIDES FOR SEASONAL BORROWINGS OF UP TO 37 MILLION AT THE PRIME RATE PLUS 275 PERCENTAGE POINTS IT ALSO CALLS FOR THE ISSUANCE OF WARRANTS FOR 565 OF THE COMPANY'S COMMON STOCK AT ABOUT THE CURRENT MARKET PRICE ALSO A 30 MILLION NOTE FROM A GROUP OF INSURANCE COMPANY LENDERS DUE SEPT 30 HAS BEEN EXTENDED TO FEB 15 1996 JAMESWAY ADDED JAMESWAY ALSO WILL ISSUE WARRANTS FOR 435 OF ITS STOCK TO THOSE LENDERS 9301190043 930119 INTERNATIONAL BRIEF RHONEPOULENC SA PRICE OF 9050 A SHARE IS SET FOR OFFER OF 6 MILLION SHARES THE FRENCH FINANCE MINISTRY YESTERDAY SET A PRICE OF 500 FRANCS 9050 EACH FOR ITS OFFERING OF SIX MILLION SHARES IN STATEOWNED CHEMICAL AND PHARMACEUTICAL COMPANY RHONEPOULENC SA THE OFFERING INCLUDES A 27MILLION SHARE TRANCHE FOR THE FRENCH MARKET ONE MILLION SHARES FOR THE US AND 17 MILLION SHARES FOR BUYERS OUTSIDE FRANCE AND THE US IN ADDITION 600000 SHARES WILL BE OFFERED TO EMPLOYEES OF THE COMPANY AT THE DISCOUNTED PRICE OF 450 FRANCS A SHARE SIX MILLION SHARES REPRESENTS ABOUT 105 OF RHONEPOULENC'S CURRENT CAPITAL THE FRENCH OFFERINGS WILL BE OPEN FROM TODAY THROUGH THURSDAY AND THE US AND INTERNATIONAL OFFERINGS WILL BE OPEN THROUGH MONDAY THE NEW RHONEPOULENC SHARES WILL BE LISTED ON THE PARIS BOURSE AND THE NEW YORK STOCK EXCHANGE STARTING NEXT TUESDAY THE OFFERING REPRESENTS THE FIRST TIME PRIVATE INVESTORS CAN HOLD DIRECT VOTING SHARES IN RHONEPOULENC 9301190042 930119 BUSINESS BRIEF BANK OF MONTREAL DIVIDEND IS INCREASED 57 2FOR1 STOCK SPLIT DECLARED BANK OF MONTREAL COMING OFF RECORD EARNINGS IN FISCAL 1992 DECLARED A 2FOR1 SPLIT OF ITS COMMON STOCK AND RAISED ITS COMMONSHARE DIVIDEND 57 THE MONTREALBASED BANK MADE THE ANNOUNCEMENT AT ITS ANNUAL MEETING IN TORONTO THE 2FOR1 STOCK SPLIT WILL BE PAID MARCH 20 TO SHAREHOLDERS OF RECORD MARCH 5 THE STOCK SPLIT IS THE BANK'S FIRST SINCE 1967 THE COMMONSHARE DIVIDEND WAS INCREASED TO 56 CANADIAN CENTS 44 US CENTS A SHARE FROM THE PREVIOUS RATE OF 53 CANADIAN CENTS THE INCREASED DIVIDEND WILL BE PAID FEB 25 TO SHAREHOLDERS OF RECORD ON FEB 8 THE COMPANY SAID SUBSEQUENT QUARTERLY DIVIDENDS WILL BE ADJUSTED TO REFLECT THE STOCK SPLIT IN A STATEMENT BANK OF MONTREAL SAID THE CHANGES REFLECT THE BANK'S CONFIDENCE IN ITS IMPROVED FINANCIAL PERFORMANCE AND POSITION OVER THE PAST FEW YEARS IN THE FISCAL YEAR ENDED OCT 31 1992 THE BANK POSTED RECORD NET INCOME OF C640 MILLION OR C476 A SHARE COMPARED WITH C595 MILLION OR C463 A SHARE A YEAR EARLIER DESPITE A SHARP INCREASE IN LOANLOSS PROVISIONS 9301190041 930119 BUSINESS BRIEF CHEVRON CORP CAPITAL EXPLORATORY BUDGET IS INCREASED BY 5 FOR YEAR CHEVRON CORP SAN FRANCISCO RAISED ITS CAPITAL AND EXPLORATORY SPENDING BUDGET 5 TO 49 BILLION FOR THE CURRENT YEAR INCLUDING THE EXPECTED APRIL 1 STARTUP OF A PIPELINE JOINT VENTURE IN KAZAKHSTAN LAST YEAR'S SPENDING WAS ABOUT 46 BILLION THE OIL GIANT SAID IT PLANS TO INVEST ABOUT 26 BILLION IN WORLDWIDE EXPLORATION AND PRODUCTION 10 MORE THAN LAST YEAR CHEVRON SAID 75 OF THE EXPENDITURES WILL BE OUTSIDE THE US SPENDING ON EXPLORATION AND PRODUCTION IN THE US WILL FALL TO 700 MILLION A DROP OF ABOUT 20 FROM LAST YEAR AND ABOUT 50 FROM THE YEAR BEFORE THAT THE COMPANY PLANS TO SPEND 17 BILLION ON WORLDWIDE REFINING MARKETING AND TRANSPORTATION DOWN FROM LAST YEAR'S 18 BILLION US SPENDING ON REFINING MARKETING AND TRANSPORTATION WAS PROJECTED AT ABOUT 10 BELOW LAST YEAR'S CHEVRON PLANS TO INVEST 250 MILLION IN THE WORLDWIDE CHEMICALS BUSINESS THIS YEAR ABOUT THE SAME AS LAST YEAR 9301190040 930119 LEISURE & ARTS A TEST OF ENDURANCE FOR HORSE AND RIDER BY ANNE NEWMAN BOULDER OAKS CALIF IT WAS NIGHTFALL AND THE TEMPERATURE WAS DROPPING QUICKLY AS TWO HORSES AND THEIR RIDERS EMERGED FROM THE DARKNESS OF A MOUNTAIN TRAIL OVERLOOKING THE DESERT 60 MILES EAST OF SAN DIEGO THEY WERE GUIDED BY FLUORESCENT GLOWSTICKS DANGLING EERILY FROM THE BLACK SILHOUETTES OF TREES THAT LINED THEIR CIRCUITOUS PATH THE DUO HAD RIDDEN 75 MILES SINCE 5 AM AND IF VETERINARIANS CLEARED THEIR HORSES THEY WOULD DESCEND THE MOONLIT MOUNTAIN TO COMPLETE THE FINAL LEG OF THEIR 100MILE ENDURANCE RIDE MY BROTHER STAGG AND HIS WIFE CHERYL ARE IMMERSED IN THIS FASTGROWING SPORT A SORT OF HIGHTECH PONY EXPRESS OF THE 1990S BY THE TIME THE SEASON ENDED NOV 30 STAGG HAD CLINCHED THE NATIONAL TITLE FOR THE MIDDLEWEIGHT DIVISION AND LED IN TWO OTHER CATEGORIES HE LATER WON THE OVERALL 100MILE TITLE AND WAS RUNNERUP FOR BEST CONDITION HE AND CHERYL HAD RIDDEN MORE THAN 1000 MILES SINCE THE BEGINNING OF THE YEAR IN TERRAIN RANGING FROM THE MOJAVE DESERT TO THE ROLLING HILLS OF NORTHEAST IOWA NORMALLY THEY ARE AN ULTRARATIONAL COUPLE BOTH ARE PHDS STAGG IN MATH AND CHERYL IN ELECTRICAL ENGINEERING BUT THEY SQUEEZE ENOUGH TIME FROM THEIR BUSY SCHEDULES AS TELECOMMUNICATIONS EXECUTIVES TO ENDURE WHAT SEEMS LIKE TORTURE TO ME SMALLISH NOT QUITE 5 FEET 8 INCHES TALL AND 130 POUNDS STAGG AN OLD FAMILY SURNAME HAS NEVER BEEN A TYPICAL JOCK A PATIENT DISCIPLINED PERSON HE OFTEN FAVORS OUTDOOR ENDURANCE SPORTS SUCH AS CROSSCOUNTRY RUNNING HE DIDN'T TAKE UP HORSEBACK RIDING UNTIL AFTER HIS MARRIAGE WHEN CHERYL'S INTEREST IN HORSES SOON TURNED INTO CASUAL WEEKEND RIDES TOGETHER FROM COMPETITIVE TWODAY RIDES THEY MOVED TO COMPETITIVE ONEDAY RIDESFIRST OF 25 AND 50 MILES THEN 100 IT'S LIKE A WEEKEND JOGGER WHO ENDS UP DOING THE IRONMAN STAGG SAYS AND IT'S AT A PACE WHERE YOU'RE PART OF NATURE NOT WHIZZING BY AT 60 MILES AN HOUR IN A CAR ON THIS YEAR'S PUGILISTIC POPPY RIDE IN SOUTHERN CALIFORNIA HE RECALLS YOU ALMOST NEEDED SUNGLASSES THE HILLS WERE SO BRIGHT RED WITH CALIFORNIA POPPIES WITH HEART MONITORS STRAPPED ON THEIR HORSES STAGG AND CHERYL JOINED 14 OTHER 100MILE COMPETITORS TO BEGIN THEIR SOUTHERN CALIFORNIA RIDE IN THE PREDAWN COLD OF THE DESERT HORSES' HOOVES SPARKED ON PAVEMENT IN THE 5 AM DARKNESS AS THEY HEADED OVER A SHORT STRETCH OF HIGHWAY TOWARD DUSTY GOLDMINING COUNTRY BOX CANYONS BOGS AND A 22MILE MOUNTAIN ASCENT THEY HAD BEEN WARNED THE NIGHT BEFORE OF RATTLESNAKES WOLVES POISONOUS PLANTS AND WARY MINERS AND RANCHERS AND AS AT EVERY RIDE THE VETERINARIANS ON HAND CAUTION THE COMPETITORS TO PACE THEIR HORSES CAREFULLY OR RISK BEING PULLED FROM THE EVENT THIS IS AN ENDURANCE RIDE NOT A RACE ONE MUSTACHIOED VET TOLD A CROWD OF 50 AND 100MILE RIDERS WE WANT YOU TO FINISH WITH A HORSE YOU CAN RIDE AGAIN THE MOTTO OF ENDURANCE RIDING IS TO COMPLETE IS TO WIN FOUR TO SIX TIMES ON EACH 100MILE RIDE HORSES ARE HELD FROM 15 MINUTES TO AN HOUR AT VET CHECKS SO THAT BOTH HORSES AND RIDERS CAN REPLENISH THEMSELVES WITH FOOD AND LIQUIDS VETERINARIANS WITH STETHOSCOPES LOOK FOR SIGNS OF LAMENESS SADDLE SORES DEHYDRATION AND EXHAUSTION RIDERS CARRY SCORECARDS WITH GRADES FOR THEIR MOUNTS WHICH ARE JUDGED AT EACH STOP IN SUCH ELEGANT CATEGORIES AS MUCOUS MEMBRANES GUT SKIN IMPULSION RESILIENCY WOUNDS AND EVEN ATTITUDE ALTHOUGH I'VE NEVER HEARD OF A HORSE PULLED FOR GIVING TOO MUCH LIP RIDERS WHOSE HORSES FLUNK ARE FINISHED FOR THE DAY PRIZES WHICH TEND TO THE EQUINE EMBROIDERED JACKETS HORSE BLANKETS AND SUCH CASH IS FORBIDDEN DEPEND NOT ONLY ON SPEED BUT ALSO ON FITNESS THE FIRST ONE OVER THE FINISH LINE IS NOT ALWAYS THE WINNER AT THE 75MILE STOP STAGG AND CHERYL WALKED IN FIRST WARNING THAT HIKERS HAD REMOVED SOME OF THE PATH MARKERS LIKE OTHER COMPETITORS THEY OFTEN JOGGED OR WALKED OVER TRICKIER STRETCHES OF TRAIL TO GIVE THEIR HORSES A BREAK AS ALWAYS THEY ATE ONLY AFTER THEY'D FED THEIR HORSES DRUBIN AND STRUT A BIG DISH OF A MESSY MIXTURE OF MASH AND OIL A BUCKET OF WATER AND A BIG PLASTIC SYRINGE FULL OF ELECTROLYTES AND WATER SHOT IGNOBLY INTO THEIR MOUTHS TO HELP KEEP THEIR METABOLISMS IN BALANCE STAGG'S PONYSIZED HORSE DRUBIN RUBBED HIS HEAD AGAINST MY BROTHER'S SHOULDER LIKE A CAT AFTER RIDING MORE THAN 3000 MILES TOGETHER THEY'RE A TIGHT PAIR FIFTEEN HOURS AND 49 MINUTES AFTER THEY BEGAN CANTERING UNDER A FULL MOON STAGG AND CHERYL EMERGED TOGETHER FROM THE MOUNTAINOUS SHADOWS OF THE PACIFIC CREST TRAIL CLEARLY EXHILARATED THEY FINISHED FIRST AND SECOND WITHIN 30 SECONDS OF EACH OTHER GIVING NINEYEAROLD DRUBIN THE MORE SEASONED HORSE THE EDGE SO HE COULD ADVANCE IN NATIONAL COMPETITION BOTH HORSES WERE IN FINE FETTLE DRUBIN LATER WON BOTH FIRST PLACE AND BEST CONDITION RIDES HOWEVER ARE NOT IMMUNE FROM DISASTER A FEW MONTHS LATER IN OREGON MORE THAN 2500 FEET UP THE SIDE OF FOGSHROUDED TRASK MOUNTAIN IN THE COASTAL RANGE VETERINARIANS INTRAVENOUSLY PUMPED 52 GALLONS OF FLUIDS INTO A DEHYDRATED HORSE THAT HAD LED AT THE 75MILE MARK FOG RAIN AND MUD APPARENTLY HAD DECEIVED BOTH HORSE AND RIDER A RELATIVELY INEXPERIENCED WOMAN WHO SAID HER EAGER ARABIAN MOUNT DIDN'T GIVE HER THE TELLTALE SIGNS OF DEHYDRATION AND EXHAUSTION WHAT I SEEM TO BE LEARNING IS HOW MUCH I DON'T KNOW SHE SAID MOURNFULLY BOTH HORSE AND RIDER RECOVERED FROM THEIR ORDEAL MINDFUL OF HOW FRAGILE EQUINE METABOLIC SYSTEMS ARE THE AMERICAN SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS KEEPS AN EYE ON ENDURANCE RIDING THE PROBLEMS COME WHEN THE HUMAN COMPETITIVE SPIRIT OVERTAKES THE ABILITY OF THE HORSES SAYS STEPHEN ZAWISTOWSKI OF THE ASPCA MORE AND MORE HORSE LOVERS ARE GETTING HOOKED ON THE SPORT BECAUSE OF THE CLOSENESS WITH A HORSE THE REMOTE SCENERY THE TIGHTKNIT CIRCLE OF RIDERS AND THEIR CREWS AND OF COURSE THE CHALLENGE THE AMERICAN ENDURANCE RIDE CONFERENCE WHICH ORGANIZES AND REGULATES EVENTS NOW CLAIMS 4000 MEMBERS IN THE US AND CANADA DOUBLE THE NUMBER FIVE YEARS AGO ACCORDING TO AERC PRESIDENT MAGGIE PRICE MORE THAN 11700 RIDERS BEGAN LAST YEAR IN NATIONWIDE RIDES RANGING FROM 50MILE TO TWODAY 180MILE EVENTS ABOUT 83 FINISHED HORSES MUST BE AT LEAST FIVE YEARS OLD TO COMPETE SERIOUS COMPETITORS CONDITION THEIR HORSES FOR YEARS THE PRIME AGE FOR ENDURANCE HORSES SEEMS TO BE BETWEEN NINE AND 15 YEARS SOME RIDERS GO TO EXTREMES TO KEEP THEIR HORSES FIT WHEN MY BROTHER AND SISTERINLAW RETURN HOME TO NORTHERN CALIFORNIA FROM A RIDE THE HORSES NOT THE PEOPLE ARE TREATED BY AN ACUPUNCTURIST AND A MASSAGE THERAPIST THEY MUST BE DOING SOMETHING RIGHT IN OCTOBER STAGG FINISHED FIRST AND CHERYL SECOND AT THE NATIONAL CHAMPIONSHIPS IN NORTHEAST IOWA AND IN A WORLD OF VOICE MAIL CAR PHONES AND OTHER FORMS OF HIGHTECHINFORMATION BOMBARDMENT ONE OF THEIR GREATEST PLEASURES IS THE PRIVACY OF A 100MILE RIDE WITH NO ONE AROUND BUT THEMSELVES AND THEIR GOOD FRIENDS DRUBIN AND STRUT MS NEWMAN IS A REPORTER FOR THE JOURNAL IN NEW YORK 9301190039 930119 CORPORATE FOCUS NEW SOFTWARE DRIVES GREYHOUND'S MODERNIZATION PLAN COMPUTER PROGRAM MAKES IT EASIER TO PURCHASE TICKETS IN ADVANCE BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FOR GREYHOUND LINES INC THE KEY TO THE HIGHWAY OF THE FUTURE MAY BE A COMPUTER SOFTWARE PROGRAM DUBBED TRIPS THE 4 MILLION PROGRAM SCHEDULED TO BE PUT TO WORK IN THE NATIONWIDE BUS COMPANY'S 200 LARGEST MARKETS BY MIDYEAR WILL FOR THE FIRST TIME ALLOW GREYHOUND PASSENGERS TO BUY THEIR TICKETS IN ADVANCE USING A TOLLFREE TELEPHONE NUMBER THAT MAY NOT SEEM LIKE MUCH OF AN INNOVATION TO AIR TRAVELERS LONG ACCUSTOMED TO SUCH SERVICE BUT IT IS PIVOTAL TO GREYHOUND'S CAMPAIGN TO MODERNIZE ITS SYSTEM AND BOLSTER RIDERSHIP AFTER A TUMULTUOUS TWOYEAR PERIOD THAT HAS INCLUDED A VIOLENT STRIKE A CHAPTER 11 REORGANIZATION AND WITHERING RECESSION WE'RE GOING TO BE MAKING IT MORE PLEASANT AND EASIER TO GO WITH US VOWS FRANK SCHMIEDER GREYHOUND PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT GREYHOUND IS BANKING ON THE NEW RESERVATION SYSTEM FOR MORE THAN CUSTOMER CONVENIENCE IT WILL ALSO GIVE MANAGEMENT INSTANT ACCESS TO RIDERSHIP FIGURES ALLOWING THE COMPANY TO ALLOCATE BUSES AND MANPOWER MORE EFFICIENTLY AND MAKE MORE EXTENSIVE USE OF DISCOUNT FARES TO FILL SEATS THAT WOULD OTHERWISE GO EMPTY HISTORICALLY I DON'T THINK THAT THEY HAD ACCURATE DEMOGRAPHIC DATA AT THEIR FINGERTIPS SAYS VIVIAN LEE AN ANALYST WITH SMITH BARNEY HARRIS UPHAM IT'S GOING TO BE REALLY IMPORTANT GOING FORWARD EVEN WITH TRIPS LURING PASSENGERS BACK TO THE LONGDECLINING INTERSTATE BUS SYSTEM WON'T BE EASY MANY GREYHOUND TERMINALS ARE STILL SITUATED IN TOUGH URBAN NEIGHBORHOODS BUS TRAVEL WILL NEVER BE AS FAST AS FLYING AND TICKETS HAVE HISTORICALLY BEEN A LASTMINUTE PURCHASE FOR GREYHOUND CUSTOMERS WHO TYPICALLY EARN 25000 A YEAR AND HAVE LIMITED DISCRETIONARY INCOME AMID HARD ECONOMIC TIMES MANY OF THOSE CUSTOMERS HAVE SIMPLY STAYED HOME OF LATE WHILE OTHERS TOOK ADVANTAGE OF ROCKBOTTOM DISCOUNT AIR FARES CUTTING DEEPLY INTO GREYHOUND'S RIDERSHIP LAST YEAR FOR THE FIRST 11 MONTHS OF 1992 GREYHOUND PASSENGERS TRAVELED A TOTAL OF 55 BILLION MILES DOWN 74 FROM THE YEAREARLIER PERIOD AIMING TO REVERSE THE SLUMP GREYHOUND HAS INTRODUCED A NUMBER OF DEEPDISCOUNT FARES OF ITS OWN THE LATEST BEING ITS GO EASY FARES WHICH OFFER DISCOUNTS OF UP TO 50 FOR TICKETS PURCHASED 21DAYS IN ADVANCE WHILE DISCOUNT FARES HAVE HISTORICALLY ACCOUNTED FOR ONLY ABOUT 10 OF GREYHOUND REVENUE COMPARED WITH UPWARD OF 80 IN THE AIRLINE INDUSTRY THE COMPANY HOPES TO INCREASE THAT PERCENTAGE WITH THE RESERVATION SYSTEM AND A REVVED UP MARKETING CAMPAIGN THAT WILL INCLUDE AN INCREASED ADVERTISING BUDGET LOCAL PROMOTIONS TO SUPPORT REGIONAL FARE DISCOUNTS AND THE REVIVAL OF THE COMPANY'S ONCE POPULAR LEAVE THE DRIVING TO US SLOGAN THE COMPANY ALSO HOPES TO INTRODUCE COMBINED WEEKEND TRAVEL PACKAGES COMPLETE WITH HOTEL RESERVATIONS AND A FREQUENTTRAVELER PROGRAM AND IN A BID TO GAIN SOME PUBLIC RELATIONS MILEAGE FROM THE CLINTONGORE TICKET'S USE OF BUSES DURING THE PRESIDENTIAL CAMPAIGN THE COMPANY HAS EVEN INTRODUCED SPECIAL DISCOUNTS FOR TRAVELERS HEADED TO THE JAN 20 INAUGURATION IN WASHINGTON DC WE'VE GOT A BUS PRESIDENT ENDORSING BUS TRAVEL SAYS MR SCHMIEDER GREYHOUND'S CHIEF EXECUTIVE FINDS HIMSELF IN THE DRIVER'S SEAT OF A COMPANY THAT HAS CHANGED MARKEDLY SINCE MARCH 1990 WHEN AMALGAMATED TRANSIT UNION DRIVERS WALKED OFF THE JOB FORCING GREYHOUND TO SEEK FEDERAL BANKRUPTCY COURT PROTECTION THREE MONTHS LATER WITH FEWER MILES STREAMLINED ROUTES AND IMPROVED FLEET ALLOCATION GREYHOUND HAS BEEN ABLE TO OPERATE ITS SYSTEM WITH ABOUT 2950 DRIVERS ROUGHLY HALF THE NUMBER EMPLOYED FOUR YEARS AGO MEANWHILE THE COMPANY HAS CONSOLIDATED MAINTENANCE FACILITIES JETTISONED UNPROFITABLE BUS MANUFACTURING AND FOODSERVICE SUBSIDIARIES AND BEGUN REPLACING OLDER BREAKDOWNPRONE BUSES WITH NEW ONES GREYHOUND'S OPERATING EXPENSES FELL 85 TO 170 MILLION THROUGH THE FIRST NINE MONTHS OF 1992 AS A RESULT WHILE MOST AIRLINES REPORTED STAGGERING LOSSES DURING THE THIRD QUARTER GREYHOUND SQUEEZED OUT A NET PROFIT OF 15 MILLION DOWN ONLY SLIGHTLY FROM THE YEAREARLIER PERIOD DESPITE A 5 DROP IN REVENUE TO 1983 MILLION THEY HAVE A PRETTY LEAN MACHINE AT THIS POINT SAYS PHILIP BAGGALEY A TRANSPORTATION ANALYST WITH STANDARD & POORS THINGS LOOK PRETTY GOOD THERE BUT GREYHOUND STILL FACES POTENTIAL PITFALLS A FEDERAL ADMINISTRATIVE LAW JUDGE IN MILWAUKEE IS EXPECTED TO RULE THIS YEAR ON AN UNFAIR LABOR PRACTICES CASE BROUGHT BY THE NATIONAL LABOR RELATIONS BOARD'S GENERAL COUNSEL AFTER THE STRIKE ALTHOUGH THE EXPECTED APPEALS COULD TAKE YEARS GREYHOUND COULD BE FORCED TO REHIRE STRIKING ATU MEMBERS AND PAY THEM MILLIONS OF DOLLARS IN BACKPAY IF IT LOSES MEANWHILE A SMALL GROUP OF THE CURRENT DRIVERS FILED A LAWSUIT IN A STATE COURT IN MEMPHIS TENN ACCUSING GREYHOUND OF RENEGING ON EMPLOYMENT AGREEMENTS AND SETTING SCHEDULES THEY CAN'T SAFELY MEET GREYHOUND EXECUTIVES HAVE DESCRIBED THE ACCUSATIONS AS LUDICROUS GREYHOUND HAS ALSO COME UNDER FIRE FROM SMALLER REGIONAL CARRIERS FOR RAISING TERMINAL RENTS AND MAKING IT MORE DIFFICULT FOR GREYHOUND PASSENGERS TO TRANSFER TO SOME OF THEIR BUSES THE NEW ADMINISTRATION IN WASHINGTON EXPECTED TO HAVE A MORE REGULATORY BENT COULD ENCOURAGE THE REGIONALS TO INTENSIFY THEIR EFFORTS TO PERSUADE THE INTERSTATE COMMERCE COMMISSION AND MEMBERS OF CONGRESS TO INVESTIGATE STILL BARRING ANOTHER STEEP ECONOMIC DOWNTURN OR A RENEWED PRICE WAR AMONG THE ALREADY STRUGGLING AIRLINES MR SCHMIEDER FORESEES IMPROVEMENT IN GREYHOUND'S RESULTS FOR 1993 AND MOST ANALYSTS ARE INCLINED TO AGREE 9301190038 930119 MAYBE LADY LIBERTY WOULD LIKE A COMPANION IN NEW YORK HARBOR BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL CHRISTOPHER COLUMBUS IS DISCOVERING THAT AMERICA DOESN'T WANT HIM NOT THIS COLUMBUS A 311FOOT STATUE OF THE EXPLORER RECENTLY CRAFTED BY RUSSIAN SCULPTOR ZURAB TSERETELI IS MAKING ITS WAY TO THE US TO COMMEMORATE THE 500TH ANNIVERSARY OF COLUMBUS'S FIRST VOYAGE TO THE NEW WORLD IT'S A GIFT FROM THE RUSSIAN PEOPLE MARKING THE EMERGING FRIENDSHIP BETWEEN THE FORMER SOVIET UNION AND THE US THE PROBLEM IS THAT IT WON'T EASILY FIT IN YOUR AVERAGE CITY PARK WEIGHING IN AT 500 TONS THE BRONZE SCULPTURE IS TALLER THAN THE STATUE OF LIBERTY WHAT'S MORE THE GOAL IS TO PLACE IT ABOUT 1400 FEET OFF THE COAST OF SOUTH FLORIDA BUT RESIDENTS OF MIAMI BEACH HAVE JUST REJECTED A PLAN TO ERECT THE STATUE IT'S ARRIVING HERE IN PIECES FROM RUSSIA NEAR THEIR BEACHES AESTHETICS WAS ONE PROBLEM I THINK IT'S ABSOLUTELY ATROCIOUS SAYS HERMAN RUBIN A RESIDENT WHO SAYS HE HAS SEEN A MODEL OF THE SCULPTURE BEAUTY ASIDE THE TOWN WAS CONCERNED THAT THE STATUE MIGHT ATTRACT TOO MANY VISITORS CREATING TRAFFIC AND PARKING HEADACHES WHAT'S MORE LOCAL OFFICIALS WANTED ADDITIONAL ASSURANCES FROM NEW WORLD FOUNDATION THE GROUP ORGANIZED LAST YEAR TO BRING THE STATUE TO THE US THAT MR COLUMBUS WOULD BE WELL PROVIDED FOR IT WOULD'VE HAD TO HAVE HAD A BOARDWALK A THREESTORY BASE ELEVATORS OBSERVATION PLATFORMS SAYS MAYOR SEYMOUR GELBER HE NOTES THAT PUBLIC SUPPORT FOR THE PROJECT NEVER MATERIALIZED MAX GOLDBERG PRESIDENT OF THE FOUNDATION WHICH IS TRYING TO RAISE 20 MILLION FOR THE PROJECT SAYS THE GROUP HAD JUDGED MIAMI BEACH TO BE A BEAUTIFUL SITE BUT HE ADDS WE WANTED TO BE A GOOD NEIGHBOR AND IF WE WERE GOING TO CAUSE HARM TO THE COMMUNITY WE WOULD RATHER WITHDRAW THAT SITE FROM CONSIDERATION OF THE 20 MILLION 15 MILLION WOULD BE USED TO ASSEMBLE THE STATUE AND BUILD A PLATFORM AT SEA MR GOLDBERG SAYS THE REST WOULD HELP CREATE AN ENDOWMENT TO PAY FOR MAINTENANCE THE OPERATION OF AN INTERPRETIVE CENTER A KIND OF INTERACTIVE MUSEUM IN THE BASE OF THE STATUE AND A SCHOLARSHIP FUND WITH A BIT OF LUCK AND A CITY WILLING TO ACCEPT RUSSIA'S LARGESS THE FOUNDATION HOPES TO HAVE THE STATUE IN PLACE BY THE END OF 1995 OR EARLY 1996 MR GOLDBERG SAYS DADE AND BROWARD COUNTIES IN SOUTH FLORIDA SHOULD EXPECT NEW PROPOSALS TO HOUSE HIS OVERSIZED ORPHAN 9301190037 930119 INTERNATIONAL BRIEF YAMAHA MOTOR CO PLAN TO PRODUCE AND MARKET SPORTS AUTO IS ABANDONED YAMAHA MOTOR CO SAID IT ABANDONED ITS PLAN TO PRODUCE AND MARKET A HIGHQUALITY SPORTS CAR FOR THE EUROPEAN MARKET IN THE FACE OF THE ECONOMIC SLUMP THERE THE JAPANESE MOTORCYCLE MAKER HAD PLANNED TO INTRODUCE A LUXURY SPORTS CAR THIS SPRING FOR EUROPEAN CUSTOMERS THROUGH ITS BRITISH SUBSIDIARY YPSILON TECHNOLOGY LTD BECAUSE OF THE PROLONGED SLUMP OF THE EUROPEAN ECONOMY WHICH MAKES FUTURE DEMAND FOR THE CAR UNCLEAR THE COMPANY HAS DECIDED TO CALL OFF THE PROJECT INDEFINITELY SAID TAKEHIKO HASEGAWA THE COMPANY'S MANAGING DIRECTOR MR HASEGAWA INSISTED HOWEVER THAT YAMAHA WILL CONTINUE DEVELOPING THE CAR WHICH IS 80 COMPLETE THE ONEPERSON CAR USING HIGHQUALITY ENGINES THE COMPANY BUILDS FOR FORMULA 1 RACE CARS CAN RUN AT A SPEED OF MORE THAN 300 KILOMETERS AN HOUR 186 MILES AN HOUR ALMOST ALL PARTS ARE BEING HANDMADE AND THE ALUMINUMBODIED CAR IS PRICED AT MORE THAN 100 MILLION YEN 793100 ACCORDING TO THE ORIGINAL PLAN UNVEILED AT THE END OF 1991 SALES WERE ESTIMATED AT 50 VEHICLES ANNUALLY 9301190036 930119 COMMODITIES COFFEE FUTURES EXTEND THEIR SLIDE OVER CONCERNS OF OVERSUPPLY LACK OF ACCORD ON EXPORT QUOTAS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COFFEE FUTURES PRICES CONTINUED TO FALL AMID CONCERNS OVER A GLUTTED MARKET AND SKEPTICISM THAT AN ACCORD ON EXPORT QUOTAS CAN BE REACHED AT NEXT MONDAY'S MEETING OF PRODUCERS AND CONSUMERS IN LONDON THERE'S A TREMENDOUS AMOUNT OF SUPPLY IN THE COFFEE MARKET SAID SCOTT MEYERS AN ANALYST WITH REDELSILGO GROUP SUCH THAT EVEN IF AN AGREEMENT IS REACHED NOBODY EXPECTS COFFEE PRICES TO SURGE HE ADDED I THINK WE COULD SEE A RECOVERY BUT CERTAINLY NOT A MAJOR BULL MARKET THAT WOULD TAKE US THROUGH A 1 A POUND THE LAST TIME COFFEE FUTURES PRICES CLOSED OVER 1 A POUND WAS THE SUMMER OF 1989 THE INTERNATIONAL COFFEE ORGANIZATION WHICH BRINGS TOGETHER PRODUCERS AND CONSUMERS IN AN EFFORT TO SET EXPORT QUOTAS AND PRICE TARGETS HAS BEEN UNABLE TO FASHION A NEW QUOTA ACCORD SINCE ITS LAST AGREEMENT COLLAPSED IN JULY 1989 ANALYSTS LIKE MR MEYERS NOTED THAT ALTHOUGH CONCERNS OVER EXCESS SUPPLY HAVE BEEN WEIGHING ON PRICES IN RECENT WEEKS FUTURES HAVE SKIDDED OVER THE PAST TWO TRADING DAYS ON MOSTLY TECHNICAL FACTORS FOR THE ACTIVELY TRADED MARCH CONTRACT THE FUTURES PRICE OF COFFEE CLOSED 110 CENTS LOWER AT 6865 CENTS A POUND ON THE COFFEE SUGAR AND COCOA EXCHANGE AFTER HAVING DIPPED AS LOW AS 6675 CENTS A POUND IN EARLY TRADING THINGS LOOKED PRETTY MISERABLE IN THE MORNING SAID JUDITH GAINES A COFFEEFUTURES ANALYST WITH MERRILL LYNCH THERE WAS NOTHING FUNDAMENTALLY TO JUSTIFY THE SHARP DROP SHE ADDED BOTH MR MEYERS AND MS GAINES BELIEVE THE VOLATILE COFFEE FUTURES MARKET IS CURRENTLY OVERSOLD AND THEY EXPECT SOME NEARTERM PRICE RISES ON SHORT COVERING BY COMMODITY FUNDS SUCH FUNDS MANAGE INVESTMENTS IN THE FUTURES MARKETS FOR SPECULATORS SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR BETS THAT COFFEE PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORT COVERING BY COFFEE PRODUCERS AND BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM TO THE MARKET SANDRA KAUL AN ANALYST WITH SHEARSON LEHMAN BROTHERS CONCURRED THAT THE MARKET SEEMS OVERSOLD AND THAT CHEAP COFFEE FUTURES PRICES OFFER GOOD BUY OPPORTUNITIES IN HER VIEW THE RECENT SELLOFF FROM LEVELS ABOVE 83 CENTS A POUND A MONTH AGO IS PRIMARILY A MARKET CORRECTION THIS IS A TECHNICAL SHAKEOUT FOLLOWING THE SHARP RALLY THIS FALL SHE SAID COFFEE FUTURES PRICES HAD SURGED FROM AROUND 52 CENTS A POUND IN SEPTEMBER TO 835 CENTS A POUND IN MIDDECEMBER AS PRODUCERS HELD BACK COFFEE SUPPLIES ON EXPECTATIONS OF HIGHER PRICES THE THREEMONTH RALLY HAD ALSO BEEN FUELED BY EARLIER EXPECTATIONS THAT AN EXPORT ACCORD WOULD BE REACHED AND ON FORECASTS OF A SHARP DECLINE IN THE BRAZILIAN CROP BRAZIL IS THE WORLD'S LARGEST COFFEE PRODUCER ONE OF THE MORE BEARISH FUNDAMENTAL FACTORS IS THE BUILDUP OF CERTIFIED STOCKS IN LICENSED WAREHOUSES ACROSS THE US OBSERVED SHEARSON LEHMAN'S MS GAINES CERTIFIED STOCKS NOW TOTAL SOME 53 MILLION BAGS COMPARED WITH SOME THREE MILLION AT THE START OF 1992 AND ONLY 200000 IN THE SUMMER OF 1989 SHE SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY THE USLED RAIDS ON IRAQ CONTRIBUTED TO A BRIEF RALLY IN PETROLEUM PRICES AS EXPECTED BUT MANY OF THE GAINS WERE LIMITED TO EARLY TRADING THEN PRICES GENERALLY DRIFTED LOWER LARGELY BECAUSE OF PROFITTAKING AND WEAK FUNDAMENTALS TRADERS SAID FOR THE DAY PRICES WERE MOSTLY FLAT TO DOWN ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR FEBRUARY DELIVERY SETTLED AT 1887 A BARREL UNCHANGED FROM THE FRIDAY CLOSE OIL ANALYSTS NOTED THAT THE HEIGHTENED MIDDLE EAST TENSIONS INVOLVING IRAQ SHOULD CONTINUE TO MAINTAIN A FLOOR UNDER OIL PRICES PREVENTING THEM FROM FALLING MUCH LOWER BUT MOST ALSO ARGUE THAT PRICES ARE UNLIKELY TO RISE MUCH FROM CURRENT DEPRESSED LEVELS UNTIL THERE IS EVIDENCE OF REAL CUTS IN PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES GRAINS & SOYBEANS US CORN AND SOYBEAN FUTURES PRICES ROSE SLIGHTLY AMID SPECULATION THAT THE INCOMING CLINTON ADMINISTRATION IS CONSIDERING WHETHER TO OFFER DIRECT GRAIN CREDITS TO RUSSIA IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE ONE CENT TO SETTLE AT 218 A BUSHEL THE US GOVERNMENT CURRENTLY DOESN'T MAKE DIRECT GRAIN LOANS TO RUSSIA IT INSTEAD GUARANTEES REPAYMENT OF BANK LOANS THAT MOSCOW ARRANGES FOR IMPORTING US FARM COMMODITIES RUSSIA'S DEFAULT HAS MADE IT INELIGIBLE FOR ADDITIONAL US CREDIT GUARANTEES THAT HAS EFFECTIVELY STOPPED THE MOVEMENT OF US GRAIN TO RUSSIA AND HELPED TO DEPRESS US GRAIN PRICES THE SPECULATION ABOUT DIRECT LOANS TO RUSSIA WAS TRIGGERED BY WIRE REPORTS THAT THE CLINTON ADMINISTRATION MIGHT CONSIDER DIRECTLY LENDING ROUGHLY 1 BILLION TO MOSCOW IN 1993 A DIRECT LOAN WOULD ALLOW RUSSIA TO CONTINUE IMPORTING US FARM COMMODITIES WHILE IT SORTS THROUGH ITS LATE PAYMENTS TO LENDERS BUT SUCH A MOVE WOULD BE CONTROVERSIAL BECAUSE A DIRECT LOAN WOULD WORSEN THE US BUDGET DEFICIT AT A TIME WHEN WEAK GRAIN PRICES ARE ALREADY EXPECTED TO INCREASE THE COST OF CROP PRICE SUPPORT PROGRAMS US LOAN GUARANTEES DON'T SHOW UP AS A BUDGET EXPENSE AN OFFER OF A DIRECT GOVERNMENT LOAN TO RUSSIA WOULD BE CONTROVERSIAL IN CONGRESS BECAUSE IT ISN'T CLEAR WHEN OR HOW MOSCOW WOULD REPAY IT RUSSIA'S LATE PAYMENTS ON USGUARANTEED GRAIN LOANS HAVE CLIMBED TO ABOUT 200 MILLION SINCE NOVEMBER 9301190035 930119 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 CLOSED FOR HOLIDAY 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 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 725 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 11 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 307 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 778 60 DAYS 786 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 291 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301190034 930119 BUSINESS BRIEF ADOLPH COORS CO COORS BREWING UNIT'S SALES ROSE 28 IN FOURTH QUARTER ADOLPH COORS CO SAID ITS COORS BREWING CO UNIT SOLD SLIGHTLY MORE BEER IN 1992 THAN THE YEAR BEFORE AND INCREASED SALES IN THE FOURTH QUARTER BY 28 THE GOLDEN COLO COMPANY SAID SALES ROSE TO 19569000 BARRELS IN 1992 FROM 19521000 AN INCREASE OF ABOUT 02 FOR THE 12WEEK FOURTH QUARTER SALES ROSE TO 4361000 BARRELS FROM 4241000 BARRELS COORS SAID SALES OF ITS PRODUCTS FROM WHOLESALERS TO RETAILERS ROSE 23 THE COMPANY SAID ITS METHOD OF REPORTING SALES CHANGED DURING THE YEAR BECAUSE OF AN EXPANSION IN ITS DISTRIBUTION NETWORK SO THAT SALES TO RETAILERS FOR THE YEAR DIDN'T EQUATE SALES FROM THE COMPANY TO WHOLESALERS THE REPORTED NUMBER WAS IN BETWEEN ANALYSTS' ESTIMATES OF THE NATION'S THIRD LARGEST BREWER'S VOLUME FOR 1992 WHICH WERE FROM 191 MILLION BARRELS TO 20 MILLION BARRELS ANALYSTS ALSO HAVE ESTIMATED THAT SALES AT ANHEUSERBUSCH COS ROSE SLIGHTLY AND THAT MILLER BREWING CO A UNIT OF PHILIP MORRIS COS LOST SALES VOLUME IN 1992 COORS SAID ITS GROWTH HAS BEEN DRIVEN BY COORS LIGHT COORS CUTTER KEYSTONE AND KEYSTONE LIGHT AND KILLIAN'S GROWTH WAS STRONGEST IN THE EASTERN US 9301190033 930119 TECHNOLOGY & MEDICINE BIOTECH FIRMS' EFFORTS TO RAISE MONEY MAY BE HURT BY CENTOCOR'S DISCLOSURES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL CENTOCOR INC'S DISCLOSURES OF MAJOR PROBLEMS WITH ITS MAIN DRUG MAY FRUSTRATE FLEDGING BIOTECHNOLOGY COMPANIES' HOPES OF RAISING NEW MONEY IN THE NEXT FEW MONTHS CENTOCOR'S TROUBLES HIT JUST AS THE EQUITY ISSUE MARKET WAS BEGINNING TO SHOW SIGNS OF LIFE WITH AN ESTIMATED 15 BILLION OF INITIAL AND SECONDARY OFFERINGS OF SECURITIES PLANNED BY BIOTECH COMPANIES FOR THE FIRST QUARTER THE MARKET WAS VIRTUALLY SHUT DOWN FOR NEW BIOTECH CONCERNS FOR MUCH OF LAST YEAR AND INVESTORS' UNEASINESS ABOUT THE INDUSTRY INTENSIFIED AFTER CENTOCOR FAILED TO GAIN FOOD AND DRUG ADMINISTRATION CLEARANCE TO MARKET ITS FLAGSHIP DRUG HA1A YESTERDAY THE MALVERN PA CONCERN SAID TESTING OF THE DRUG ONCE CONSIDERED A LIFESAVING THERAPY FOR HOSPITAL PATIENTS IN BACTERIAL SHOCK WAS SUSPENDED BECAUSE OF AN UNEXPECTEDLY HIGH NUMBER OF PATIENT DEATHS SOME INDUSTRYWATCHERS SAID THE NEWS COULD DAMP DEMAND FOR STOCKS IN COMPANIES THAT ARE BASED ON UNPROVEN CONCEPTS AND WHOSE PRODUCTS ARE YEARS AWAY FROM COMMERCIAL USE THIS IS A WAKEUP CALL FOR INVESTORS SAID EVAN STURZA PUBLISHER OF A BIOTECHNOLOGY NEWSLETTER OTHERS ARGUED THAT SUCH FEARS ARE AN OVERREACTION SAYING THAT CENTOCOR'S DIFFICULTY WITH HA1A WAS AN ISOLATED CASE THAT WAS ALREADY KNOWN THE DRUG HAS BEEN DISCOUNTED AS A BELLWETHER FOR THE BIOTECHNOLOGY GROUP SAID STU WEISBROD A BIOTECH ANALYST AT MERRILL LYNCH IF THE SAME THING HAD HAPPENED TO A MORE HIGHPROFILE PRODUCT SUCH AS SYNERGEN'S ANTRIL A COMPETING TREATMENT THE GROUP WOULD HAVE BEEN SMASHED INVESTORS' NERVES HAVE BEEN RATTLED SEVERAL TIMES OVER THE PAST YEAR AND A HALF BY SETBACKS FOR OTHER BIOTECH COMPANIES SUCH AS GENSIA PHARMACEUTICALS INC CETUS CORP AND US BIOSCIENCE INC EACH OF WHICH HAVE HAD PRODUCTS THAT FAILED TO LIVE UP TO EXPECTATIONS IN CLINICAL TRIALS KENNETH FITZSIMMONS DIRECTOR OF CAPITAL MARKETS AT ROBERTSON STEPHENS & CO IN SAN FRANCISCO SAID HE DOUBTS CENTOCOR'S NEWS WILL CAUSE A REPLAY OF LAST YEAR'S INVESTOR FLIGHT FROM NEW AND SECONDARY BIOTECH ISSUES HE SAID SEVERAL OTHER BIOTECH STOCKS WEREN'T AFFECTED YESTERDAY AND THAT HE HASN'T SEEN ANY INDICATION THAT THE PLANNED OFFERINGS WOULD BE HURT BUT VALUATIONS IN THE BIOTECHNOLOGY INDUSTRY ARE BASED ON PERCEPTIONS SAID WILLIAM SAHLMAN PROFESSOR OF FINANCE AT HARVARD BUSINESS SCHOOL WHEN BAD NEWS EMERGES ABOUT ONE COMPANY IT TENDS TO AFFECT THE PERCEPTION OF THE WHOLE GROUP HE SAID HISTORY SUGGESTS THAT IT HAS A SPILLOVER EFFECT TO OTHER BIOTECH ISSUES INDEPENDENT OF THE SPECIFICS OF THE PARTICULAR NEWS EVENT HE SAID AND JOHN WILKERSON CHAIRMAN OF WILKERSON GROUP A CONSULTING FIRM SAID THE NEWS SHOULD REMIND INVESTORS HOW FRAGILE THE DRUGAPPROVAL PROCESS IS BUT THAT IT SHOULDN'T DISRUPT FINANCINGS FOR THE NEXT COUPLE OF MONTHS BY MARCH HOWEVER THE PUBLIC FINANCING WINDOW MAY CLOSE AGAIN AS INSTITUTIONAL MANAGERS FINISH INVESTING A SURGE OF MONEY FROM LATE LAST YEAR INTO MUTUAL FUNDS HE SAID KAREN FIRESTONE WHO MANAGES THE 850 MILLION FIDELITY SELECT BIOTECHNOLOGY FUND AND IS STILL BUYING BIOTECH STOCKS WASN'T FAZED BY THE 62 PLUNGE IN CENTOCOR'S SHARE PRICE IN OVERTHECOUNTER TRADING YESTERDAY WHAT SURPRISED HER SHE SAID WAS THAT THERE WERE SO MANY INVESTORS WHO STILL BELIEVE IN THE COMPANY CENTOCOR'S INFLATED VALUATION WAS THE EXCEPTION IN THE INDUSTRY SHE SAID AS INVESTORS HAVE BECOME MORE SELECTIVE SINCE THE TURMOIL IN THE BIOTECH MARKET LAST YEAR I DON'T THINK IT CHANGES THE WAY PEOPLE ARE GOING TO LOOK AT EMERGING COMPANIES SHE SAID ONE HAS TO BE REALISTIC ABOUT ALL OF THEM 9301190032 930119 BUSINESS BRIEF BACHMAN INFORMATION SYSTEMS INC FIRM TAKES A CHARGE POSTS LOSS FOR FISCAL 2ND QUARTER BACHMAN INFORMATION SYSTEMS INC TOOK A 18 MILLION RESTRUCTURING CHARGE AND REPORTED A 39 MILLION LOSS FOR ITS FISCAL SECOND QUARTER THE SOFTWARE COMPANY IN BURLINGTON MASS SAID THE CHARGE EQUALING 22 CENTS A SHARE PRIMARILY REFLECTED COSTS ASSOCIATED WITH REDUCING ITS WORK FORCE BY 15 AND EXPLORING STRATEGIC AND FINANCIAL ALTERNATIVES AFTER THE RESTRUCTURING CHARGE THE PERSHARE NET LOSS EQUALED 49 CENTS IN THE YEARAGO PERIOD BACHMAN HAD NET OF 489000 OR SEVEN CENTS A SHARE WHICH INCLUDED A ONETIME TAXLOSS CARRYFORWARD GAIN OF 144000 OR TWO CENTS A SHARE REVENUE DECLINED 12 TO 97 MILLION FROM 111 MILLION A YEAR AGO FOR THE SIX MONTHS BACHMAN HAD A NET LOSS OF 75 MILLION OR 93 CENTS A SHARE ON 178 MILLION IN REVENUE IN THE PRIOR SIXMONTH PERIOD THE COMPANY HAD NET INCOME OF 907000 OR 13 CENTS A SHARE THOSE RESULTS INCLUDED A TAXLOSS CARRYFORWARD GAIN OF 258000 OR FOUR CENTS A SHARE REVENUE WAS 203 MILLION 9301190031 930119 ABREAST OF THE MARKET STOCKS END MIXED AS INVESTORS SELL GROWTH SHARES AND BUY CYCLICALS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS FINISHED MIXED AS INVESTORS ABANDONED CONSUMER GROWTH STOCKS FOR COMPANIES WHOSE FORTUNES ARE TIED MORE CLOSELY TO THE ECONOMY THE DOW JONES INDUSTRIAL AVERAGE GAINED 379 POINTS TO 327491 BUT STANDARD & POOR'S 500STOCK INDEX SLIPPED 031 POINT TO 43684 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 014 TO 24033 TRADING WAS MUTED BECAUSE MANY BIG INSTITUTIONAL INVESTORS WERE AWAY YESTERDAY FOR THE OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY ON THE BIG BOARD VOLUME TOTALED 195980000 SHARES OFF SHARPLY FROM FRIDAY'S 306140000 SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 977 TO 868 THOMAS MCMANUS VICE PRESIDENT IN THE DERIVATIVES GROUP AT MORGAN STANLEY SAID INVESTORS WERE CONTINUING TO BAIL OUT OF BIGCAPITALIZATION CONSUMER NONDURABLE GROWTH STOCKS YESTERDAY AND MUSCLING THEIR WAY INTO STOCKS THAT ARE PARTICULARLY SENSITIVE TO ECONOMIC CYCLES IN A SIGN OF THAT ROTATION MORGAN STANLEY'S CONSUMER INDEX SLIPPED 059 POINT TO 20232 BUT THE INVESTMENT BANK'S CYCLICAL STOCK INDEX JUMPED 242 POINTS OR ALMOST 1 TO 25171 SINCE OCT 9 THE CYCLICAL INDEX HAS LEAPT 197 WHILE THE CONSUMER INDEX IS UP ONLY 57 EVEN THOUGH THESE CONSUMER NONDURABLES HAVE A SIGNIFICANTLY HIGHER WEIGHTING IN THE S&P THAN THE CYCLICALS THE LARGER RETURNS AVAILABLE FROM CYCLICAL STOCKS ARE POWERING THE MARKET SAID MR MCMANUS AMONG THE CYCLICAL STOCKS THAT ROSE YESTERDAY GEORGIAPACIFIC CHALKED UP A GAIN OF 1 3/8 POINT TO 59 3/8 ALLIEDSIGNAL ROSE 1 5/8 TO 59 1/2 AND INTERNATIONAL PAPER CLIMBED 7/8 TO 62 5/8 BUT A NUMBER OF WELLKNOWN CONSUMER NONDURABLE STOCKS TOOK IT ON THE CHIN PHILIP MORRIS SKIDDED 1 1/8 TO 71 5/8 PROCTER & GAMBLE LOST 5/8 TO 50 3/8 AND ANHEUSERBUSCH SLID 3/4 TO 59 1/8 SOME DRUG STOCKS GOT HIT TOO SCHERINGPLOUGH SLIPPED 7/8 TO 57 7/8 MERCK DROPPED 3/8 TO 41 3/8 AND ABBOTT LABORATORIES SLIPPED 1/2 TO 27 5/8 GERALD SIMMONS SENIOR VICE PRESIDENT IN CHARGE OF TRADING AT INTERSTATE/JOHNSON LANE IN ATLANTA SAID HE SEES A LOT OF CHURNING OF STOCKS BUT LITTLE MOVEMENT ONE WAY OR ANOTHER IN STOCK PRICES I THINK THE MARKET IS STALLING IN HERE AND IS READY TO GO DOWN UNTIL WE SEE EVIDENCE OF IMPROVING EARNINGS SAID MR SIMMONS ONE OF THE MOST IMPORTANT EARNINGS REPORTS GUIDING THE MARKET WILL COME TODAY WHEN INTERNATIONAL BUSINESS MACHINES IS EXPECTED TO REPORT ITS FOURTHQUARTER RESULTS IBM CHAIRMAN JOHN F AKERS HAS PREDICTED BREAKEVEN RESULTS BUT SOME ANALYSTS THINK THE FOURTH QUARTER WILL SHOW A LOSS WHICH COULD DRIVE IBM'S STOCK LOWER YESTERDAY IBM ADDED 1 1/4 TO 49 1/2 XEROX DIVED 3 5/8 POINTS TO 83 THE COMPANY SAID IT PLANS TO WITHDRAW FROM ITS REMAINING INSURANCE AND OTHER FINANCIAL SERVICES BUSINESSES AND FOCUS ON ITS CORE DOCUMENTPROCESSING LINE XEROX SAID THAT IN CONNECTION WITH THE RESTRUCTURING OF ITS CRUM & FORSTER UNIT IT WILL RECOGNIZE A FOURTHQUARTER AFTERTAX CHARGE OF 778 MILLION IN ADDITION STAMFORD CONNBASED XEROX SAID IT IS CONSIDERING ISSUING AS MUCH AS 500 MILLION OF NEW EQUITY DURING THE FIRST HALF OF THIS YEAR BANKAMERICA JUMPED 2 1/8 TO 49 1/2 THE SAN FRANCISCO BANK IS CLOSE TO SELLING AS MUCH AS 2 BILLION IN BAD REAL ESTATE LOANS AND PROPERTIES THE PROSPECTIVE BUYER ACCORDING TO INDIVIDUALS FAMILIAR WITH THE PLAN IS MORGAN STANLEY REALTY FUND A PARTNERSHIP OF INSTITUTIONAL INVESTORS FORMED BY THE INVESTMENT BANK STOCKS OF OTHER BIG BANKS ALSO FARED WELL CHEMICAL BANKING ADDED 3/4 TO 41 1/4 CHASE MANHATTAN GAINED 1 1/8 TO 30 1/2 BANK OF NEW YORK SURGED 2 3/4 TO 59 1/2 MELLON BANK SOARED 1 3/4 TO 56 5/8 FIRST CHICAGO LEAPT 1 1/8 TO 39 1/2 AND FIRST FIDELITY BANCORP CLIMBED 7/8 TO 46 1/8 TCF FINANCIAL BOUNCED UP 4 1/8 TO 32 1/4 THE COMPANY REPORTED FOURTHQUARTER NET INCOME OF 124 A SHARE COMPARED WITH 52 CENTS IN THE COMPARABLE PERIOD LAST YEAR BELL INDUSTRIES SKIDDED 1 5/8 TO 9 5/8 THE LOS ANGELESBASED MAKER OF INDUSTRIAL PRODUCTS FOR THE ELECTRONICS COMPUTER AND BUILDING MARKETS SAID IT EXPECTS TO REPORT A SECONDQUARTER LOSS OF ABOUT TWO CENTS A SHARE COMPARED WITH NET INCOME OF 11 CENTS A SHARE A YEAR AGO THE COMPANY ALSO SAID IT HAS DECIDED TO SUSPEND ITS 10CENTASHARE QUARTERLY DIVIDEND TREDEGAR INDUSTRIES ADDED 2 TO 17 THE PLASTICS METAL PRODUCTS COAL OIL AND GAS CONCERN HAD FOURTHQUARTER NET INCOME OF 43 CENTS A SHARE AFTER A SIXCENT GAIN COMPARED WITH NET INCOME OF 20 CENTS A YEAR EARLIER JOHN NUVEEN CLIMBED 7/8 TO 24 3/4 AG EDWARDS & SONS ANALYST JEFFREY HOPSON UPGRADED HIS INVESTMENT RATING ON THE STOCK THE SHARES SUFFERED A BRUISING 7 FALL FRIDAY WHEN THE CHICAGO INVESTMENT BANKING COMPANY REPORTED FOURTHQUARTER EARNINGS SLIGHTLY BELOW ANALYSTS' EXPECTATIONS SYSCO ADVANCED 1 1/2 TO 24 3/4 AG EDWARDS & SONS ANALYST JACK RUSSO RAISED HIS INVESTMENT RATING ON THE FOOD SERVICE DISTRIBUTOR TO BUY FROM HOLD SAYING THE STOCK HAS RETREATED ABOUT THREE POINTS SINCE THE YEAR BEGAN AMERICAN EXPRESS EDGED UP 1/2 TO 25 5/8 THE CHIEF EXECUTIVE OFFICER OF A MAJOR CONSUMERPRODUCTS CONCERN IS EMERGING AS THE LEADING CANDIDATE TO SUCCEED JAMES ROBINSON III AS CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN EXPRESS STANDARD PRODUCTS WAS UP 2 TO 37 1/8 THE RUBBER AND PLASTICS PRODUCT MAKER REPORTED SECONDQUARTER NET INCOME OF 78 MILLION OR 65 CENTS A SHARE UP FROM 52 MILLION OR 51 CENTS A SHARE IN THE COMPARABLE PERIOD LAST YEAR 9301190030 930119 BUSINESS BRIEF SOUTHERN CO FOURTHPERIOD NET FELL 28 DIVIDEND RISES BY TWO CENTS SOUTHERN CO SAID FOURTHQUARTER EARNINGS FELL 28 COMPARED WITH THE YEAREARLIER PERIOD WHICH BENEFITED FROM A BIGGER GAIN FROM THE SETTLEMENT OF A CONTRACT DISPUTE THE ATLANTA UTILITY HOLDING COMPANY ALSO INCREASED ITS QUARTERLY DIVIDEND TO 57 CENTS A SHARE FROM 55 CENTS IT IS PAYABLE MARCH 6 TO HOLDERS OF RECORD FEB 1 IN LINE WITH ANALYSTS' ESTIMATES THE COMPANY POSTED NET OF 141 MILLION OR 45 CENTS A SHARE FOR THE QUARTER DOWN FROM THE 1966 MILLION OR 63 CENTS A SHARE A YEAR EARLIER REVENUE DECLINED A FRACTION TO 187 BILLION FROM 188 BILLION IN NOVEMBER 1991 SOUTHERN REACHED AN AGREEMENT WITH GULF STATES UTILITIES CO IN BEAUMONT TEXAS OVER A DISPUTED SALE OF ELECTRICITY TO GULF STATES THE FIRST INSTALLMENT OF THAT SETTLEMENT WAS POSTED IN THE FOURTH QUARTER OF 1991 RESULTING IN A GAIN OF 114 MILLION OR 36 CENTS A SHARE FOR THE FOURTH QUARTER OF 1992 EARNINGS INCLUDED A GAIN OF 11 MILLION OR FOUR CENTS A SHARE RELATED TO THE SETTLEMENT FOR ALL OF 1992 SOUTHERN POSTED EARNINGS OF 953 MILLION OR 302 A SHARE UP 88 FROM THE 876 MILLION OR 278 A SHARE REPORTED A YEAR EARLIER REVENUE FOR THE YEAR ROSE MARGINALLY TO 807 BILLION FROM 805 BILLION 9301190029 930119 JOHNSON & JOHNSON TO HELP RIVAL UPJOHN SELL MOTRIN KALAMAZOO MICH UPJOHN CO IN AN EFFORT TO BOOST SALES OF ITS NONPRESCRIPTION PAIN RELIEVER MOTRIN IB IS SEEKING ADVICE FROM A COMPETITOR MARKETING GIANT JOHNSON & JOHNSON UNDER THE AGREEMENT JOHNSON & JOHNSON'S MCNEIL CONSUMER PRODUCTS CO WHICH SELLS TYLENOL PRODUCTS WILL HELP UPJOHN EXPAND THE RETAIL DISTRIBUTION OF MOTRIN PRODUCTS ENHANCE INSTORE PLACEMENT AND INCREASE SHELF SPACE ACCORDING TO THOMAS M LAUGHLIN CORPORATE VICE PRESIDENT AND GENERAL MANAGER OF UPJOHN'S CONSUMER PRODUCTS DIVISION MCNEIL WILL ALSO GRANT UPJOHN ACCESS TO SOME MCNEIL PRODUCTS INCLUDING SEVERAL IBUPROFENBASED PRODUCTS DEVELOPED BUT NOT MARKETED BY MCNEIL MCNEIL WILL RECEIVE PAYMENT AND SOME FUTURE TECHNOLOGY DETAILS WEREN'T PROVIDED THERE'S A MUTUALLY ADVANTAGEOUS REASON FOR THE TWO FIRMS TO COOPERATE MR LAUGHLIN SAID HE SAID JOHNSON & JOHNSON WON'T BE DIRECTLY SELLING MOTRIN A JOHNSON & JOHNSON SPOKESMAN ACKNOWLEDGED THAT MCNEIL WOULD BE HELPING A TYLENOL COMPETITOR BUT SAID IN OVERALL CONTEXT OF ARRANGEMENT WE THINK IT MAKES SENSE JOHNSON & JOHNSON STOPPED SELLING ITS IBUPROFEN PRODUCT MEDIPREN THIS YEAR BECAUSE OF POOR SALES 9301190028 930119 BUSINESS BRIEF GENERAL SIGNAL CORP FIRM TO SELL ULTRATECH UNIT TO COMPANY'S MANAGEMENT GENERAL SIGNAL CORP BASED IN STAMFORD CONN SAID IT SIGNED A LETTER OF INTENT TO SELL ITS ULTRATECH STEPPER UNIT TO THE COMPANY'S MANAGEMENT LED BY ARTHUR W ZAFIROPOULO THE UNIT'S PRESIDENT TERMS WEREN'T DISCLOSED UTRATECH MAKES PHOTO LITHOGRAPHY SYSTEMS FOR THE SEMICONDUCTOR INDUSTRY THE SALE OF ULTRATECH FOLLOWS AN ANNOUNCEMENT LAST WEEK BY GENERAL SIGNAL TO DIVEST ITSELF OF ALL ITS SEMICONDUCTOR OPERATIONS AS PART OF THE DIVESTITURE GENERAL SIGNAL HAS SAID IT WILL TAKE A 582 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS IN THE 1991 FOURTH QUARTER THE COMPANY EARNED 88 MILLION OR 45 CENTS A SHARE WHICH INCLUDED A LOSS ON DISCONTINUED OPERATIONS OF 98 MILLION GENERAL SIGNAL WITH 16 BILLION IN SALES IN 1991 MAKES EQUIPMENT AND INSTRUMENTS FOR THE PROCESS CONTROL ELECTRICAL AND INDUSTRIAL TECHNOLOGY INDUSTRIES 9301190027 930119 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 15 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BERRIEN COUNTY MICH WILL REDEEM ON FEB 15 1993 60000 PRINCIPAL AMOUNT OF ITS 72 ECONOMIC DEVELOPMENT FIRST MORTGAGE REVENUE BONDS SERIES A 1978 DUE AUG 15 2003 BANK OF OKLAHOMA IS TRUSTEE BLOOMINGTON IND WILL REDEEM ON FEB 1 1993 35000 PRINCIPAL AMOUNT OF ITS 9375 FIRST MORTGAGE BONDS SERIES A DUE FEB 1 2006 BANK ONE INDIANAPOLIS IS TRUSTEE GREEN RIVER WYO WILL REDEEM ON FEB 15 1993 ITS SERIES 1982 ADJUSTABLE RATE POLLUTION CONTROL REVENUE BONDS CORESTATES BANK PHILADELPHIA IS TRUSTEE GULF COAST WASTE DISPOSAL AUTHORITY WILL REDEEM ON FEB 1 1993 230000 PRINCIPAL AMOUNT OF ITS 1977 SERIES A POLLUTION CONTROL REVENUE BONDS DUE FEB 1 2007 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE MOFFAT COUNTY COLO WILL REDEEM ON FEB 15 1993 720000 PRINCIPAL AMOUNT OF ITS 1980 SERIES A SINGLE FAMILY MORTGAGE REVENUE BONDS DUE FEB 15 1995 2001 AND 2012 CONTINENTAL BANK CHICAGO IS TRUSTEE NEWARK NJ HOUSING FINANCE CORP WILL REDEEM ON FEB 15 1993 10000 PRINCIPAL AMOUNT OF ITS 12 MORTGAGE REVENUE BONDS DUE FEB 15 2024 UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 26 1993 ITS 13 ECONOMIC DEVELOPMENT BONDS DUE OCT 1 2007 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE NORTHEAST MD WASTE DISPOSAL AUTHORITY WILL REDEEM ON FEB 15 1993 ITS 1983 SERIES RESOURCE RECOVERY REVENUE BONDS DUE JAN 1 19941997 2001 AND 2077 MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE OCEAN HIGHWAY & PORT AUTHORITY WILL REDEEM ON FEB 15 1993 ITS 575 AND 59 REVENUE BONDS SERIES 1968 DUE APRIL 1 1993 CHASE MANHATTAN BANK IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSN WILL REDEEM THE FOLLOWING MEDIUMTERM NOTE ISSUES ON FEB 16 1993 ITS 815 AND 85 DUE FEB 16 1998 AND 2001 RESPECTIVELY AND ON FEB 22 1993 ITS 848 AND 85 DUE FEB 22 2001 9301190026 930119 WHO'S NEWS PLUM CREEK TIMBER CO PLUM CREEK TIMBER CO SEATTLE DAVID D LELAND 57 YEARS OLD HAS BEEN NAMED CHAIRMAN OF THE BOARD OF THE COMPANY'S GENERAL PARTNER PLUM CREEK MANAGEMENT CO IN ADDITION TO HIS ROLES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS TIMBER COMPANY HE REPLACES RICHARD BRESSLER 62 WHO LEFT AFTER THE RECENT ACQUISITION OF PLUM CREEK BY SPO PARTNERS & CO THE COMPANY SAID 9301190025 930119 OTC FOCUS MARKET CLIMBS TO FOURTH HIGH IN A ROW AS INVESTORS SHRUG OFF CENTOCOR'S SKID BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALLSTOCK INVESTORS SHRUGGED OFF A 62 PLUNGE IN CENTOCOR'S SHARE PRICE AND BID THE OVERTHECOUNTER MARKET TO ITS FOURTH HIGH IN A ROW SHARP GAINS BY SEMICONDUCTOR LEADER INTEL AND BY CELLULAR TELEPHONE SERVICE PROVIDERS LIN BROADCASTING AND ITS PARENT MCCAW CELLULAR COMMUNICATIONS LED THE ADVANCE THE NASDAQ COMPOSITE INDEX ADDED 098 OR 014 TO 69813 WITHOUT THE GAINS IN INTEL WHICH JUMPED 4 7/8 TO 116 5/8 LIN WHICH SURGED 6 1/2 TO 88 1/4 AND MCCAW WHICH ADVANCED 2 1/2 TO 39 1/8 THE INDEX WOULD HAVE BEEN DOWN ABOUT A POINT GAINERS LED DECLINERS 1440 TO 1150 NATIONAL MARKET SYSTEM VOLUME TOTALED 199179900 SHARES DOWN FROM 249510500 FRIDAY TRADERS ATTRIBUTED THE SLOWER PACE TO YESTERDAY'S OBSERVANCE OF THE HOLIDAY MARKING THE BIRTH OF MARTIN LUTHER KING JR INTEL'S ADVANCE CONTINUED A RALLY THAT HAS LIFTED THE STOCK 34 SINCE YEAR END TRADERS TIED THE NEW GAINS TO AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL IN WHICH ANDREW GROVE INTEL'S PRESIDENT OUTLINED PLANS TO USE PRICECUTTING AND NEW PRODUCTS TO CONSOLIDATE THE COMPANY'S LEADERSHIP IN THE CHIP INDUSTRY INCREASES IN LIN AND MCCAW SHARES CAME AFTER FRANK GOVERNALI A FIRST BOSTON ANALYST REPEATED A STRONG BUY RECOMMENDATION ON LIN WHICH IS 52OWNED BY MCCAW MR GOVERNALI CITED CONTINUED STRONG GROWTH IN THE CELLULAR TELEPHONE INDUSTRY HE SAID LIN'S STOCK COULD HIT 140 BY 1995 WHEN MCCAW HAS THE RIGHT TO ACQUIRE THE REST OF THE COMPANY BUT WHILE THE MARKET AS A WHOLE CREPT HIGHER MANY BIOTECHNOLOGYRELATED STOCKS TUMBLED AFTER CENTOCOR SUSPENDED CLINICAL TRIALS AND EUROPEAN SALES OF ITS LEAD PRODUCT CENTOXIN THE MALVERN PA COMPANY SAID AN UNUSUALLY LARGE NUMBER OF PATIENTS DIED WHILE TAKING PART IN RESEARCH ON THE DRUG WHICH IS DESIGNED TO TREAT SEPSIS A BLOOD INFECTION CENTOCOR'S SHARES SKIDDED 10 1/8 TO 6 5/8 ON MARKETLEADING VOLUME OF 138 MILLION SHARES ANALYSTS AT PAINEWEBBER AND HAMBRECHT & QUIST DOWNGRADED THEIR RATINGS ON CENTOCOR AFTER THE NEWS SOME IN THE MARKET HAD BEEN COUNTING ON CENTOXIN SALES TO HELP CENTOCOR RETURN TO PROFITABILITY THE COMPANY HAD BEEN ONE OF THE BIOTECHNOLOGY GROUP'S HIGHFLIERS OTHER MEDICAL TECHNOLOGY STOCKS SKIDDED AFTER THE CENTOCOR DISCLOSURE THOSE LOSSES WIDENED DURING THE AFTERNOON AFTER COMMENTATOR DAN DORFMAN REPORTED ON REMARKS BY INVESTMENT NEWSLETTER WRITER EVAN STURZA PREDICTING THAT OTHER COMPANIES WILL DISCLOSE PRODUCT DISAPPOINTMENTS SETTING OFF MORE BIOTECH BLOODBATHS AMONG OTHER BIG LOSERS WERE AMGEN WHICH FELL 2 3/8 TO 67 5/8 BIOGEN WHICH LOST 1 3/8 TO 41 7/8 IMMUNEX WHICH SHED 1 3/4 TO 47 3/8 SYNERGEN WHICH DROPPED 1 3/4 TO 59 1/2 AND XOMA WHICH SLUMPED 1 1/4 TO 8 SHARES BEGAN THE DAY LOWER ON PESSIMISM GENERATED BY SEVERAL ARTICLES THAT PREDICTED A SELLOFF IN SMALL STOCKS ACCORDING TO LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO BUT WHILE THAT TALK AND THE CENTOCOR NEWS HAD TRADERS GIRDING FOR A DOWN DAY THERE WAS JUST NO FOLLOWTHROUGH ON THE DOWNSIDE AND THE BUYERS KEPT NIBBLING MR ZIPPER SAID THE MARKET WAS BACK IN POSITIVE TERRITORY SOON AFTER MIDDAY JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO SAID INTEL'S GAIN PACED THE TURNAROUND AND INSPIRED BUYING OF SOME OF THE MARKET'S HOTTEST TECHNOLOGY LISTINGS CISCO SYSTEMS MENLO PARK CALIF JUMPED 2 1/4 TO 89 1/8 WHILE WELLFLEET COMMUNICATIONS BASED IN BEDFORD MASS ROSE 2 3/4 TO 44 1/2 ELSEWHERE BANKINGRELATED STOCKS HAD SOLID GAINS AMONG THEM MICHIGAN NATIONAL OF FARMINGTON HILLS MICH ADDED 1 1/4 TO 53 CORESTATES FINANCIAL PHILADELPHIA ROSE 1 1/8 TO 57 5/8 AND UNION BANK SAN FRANCISCO CLIMBED 1 3/4 TO 30 1/2 US BANCORP GAINED 3/4 TO 28 THE PORTLAND ORE BANK HOLDING COMPANY REPORTED FOURTHQUARTER EARNINGS OF 63 CENTS A SHARE UP FROM 49 CENTS A SHARE A YEAR EARLIER ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM ANALYSTS EXPECTED PROFIT OF ABOUT 60 CENTS A SHARE IN THE LATEST PERIOD ALDEN PRESS JUMPED 2 TO 15 1/4 IT AGREED TO BE ACQUIRED FOR ABOUT 150 MILLION PLUS THE ASSUMPTION OF SOME DEBT BY A COMPANY FORMED BY KOHLBERG KRAVIS ROBERTS THE ELK GROVE VILLAGE ILL CONCERN'S SHARES ARE TO BE PURCHASED FOR 15 EACH THROUGH A TENDER OFFER SHOLODGE ADVANCED 2 1/2 TO 19 AFTER JC BRADFORD & CO ANALYST BARRY STOUFFER RAISED INVESTMENT RATINGS ON THE STOCK HE CITED A RECENT AGREEMENT THE COMPANY MADE GIVING IT AN OPTION TO ACQUIRE A 50 STAKE IN CERTAIN ALLSUITE HOTELS OWNED BY NEW YORK STOCK EXCHANGELISTED PRIME HOSPITALITY WESTERN PUBLISHING SLUMPED 2 1/8 TO 16 7/8 ROBERT W BAIRD & CO ANALYST JUDITH SCOTT TRIMMED AN INVESTMENT RATING ON THE STOCK SHE SAID INCREASED EXPENSES WILL CONSTRAIN EARNINGS GROWTH AT THE NEW YORKBASED CHILDREN'S BOOK PUBLISHER MEGAFOODS STORES DROPPED 3 1/8 TO 15 7/8 THE MESA ARIZ SUPERMARKET COMPANY'S CHIEF FINANCIAL OFFICER J GARY RHYMES RESIGNED CITING PERSONAL REASONS SEPARATELY PIPER JAFFRAY ANALYST STEPHEN CARNES PREDICTED THE COMPANY WILL REPORT THAT SALES FROM ITS STORES OPEN AT LEAST ONE YEAR WERE FLAT IN THE FOURTH QUARTER BORLAND INTERNATIONAL GAINED 1 TO 20 1/4 AFTER THE CLOSE OF TRADING THE SCOTTS VALLEY CALIF SOFTWARE COMPANY POSTED A THIRDQUARTER LOSS OF 234 A SHARE WHICH INCLUDED SEVERAL NONRECURRING CHARGES A YEAR EARLIER IT HAD PROFIT OF 28 CENTS A SHARE THE STOCK FELL BACK TO 19 IN AFTERHOURS TRADING ON REUTERS HOLDINGS' ELECTRONIC INSTINET SERVICE 9301190024 930119 ENTERPRISE MINORITY AND WOMEN'S FIRMS FARE WELL AT INAUGURATION DIVERSE GROUP OFFERS EVERYTHING FROM SECURITY SERVICES TO PAPERWEIGHTS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THIS WEEK'S FRENETIC INAUGURAL ACTIVITIES MAY CONTAIN A GOOD OMEN FOR WOMANOWNED AND MINORITYOWNED SMALL BUSINESSES CONCERNED ABOUT HOW THEY WILL FARE UNDER THE CLINTON ADMINISTRATION SUCH COMPANIES MADE ABOUT HALF OF THE ITEMS CARRIED BY THE SIX INAUGURAL COMMEMORATIVE STORES IN WASHINGTON THE CLINTON INAUGURAL COMMITTEE ESTIMATES COMMITTEE OFFICIALS SAY THEY AGGRESSIVELY SOUGHT TO USE A HIGHLY DIVERSE GROUP OF ENTREPRENEURS JUST AS A BROAD RANGE OF BUSINESSES OWNED BY MINORITIES AND WOMEN ALSO WON MANY CONTRACTS DURING THE DEMOCRATIC CONVENTION LAST SUMMER INAUGURAL COMMITTEE OFFICIALS ALSO SAY ONE OF THEIR LARGER CONTRACTS TO PROVIDE SECURITY SERVICES WENT TO A MINORITYOWNED FIRM EXECUTIVE SECURITY INC OF WASHINGTON A WOMANOWNED CONCERN IN ALEXANDRIA VA DELANCEY PRINTING & PUBLISHING CO WON A CONTRACT TO PRINT PROGRAMS AND OTHERS MATERIALS MOONLIGHT SOUND A WOMANOWNED CONCERN IN NASHVILLE TENN GOT A CONTRACT TO PROVIDE SOUND SYSTEMS FOR CONCERTS THE INAUGURATION COMMITTEE SAYS IT ALSO SOUGHT BIDS FROM MINORITYOWNED AND WOMANOWNED ENTERPRISES FOR SERVICES SUCH AS CATERING BUS TRANSPORT AND THE REMOVAL OF PARADE BLEACHERS THOUGH IT HASN'T COMPILED A FULL TALLY OF CONTRACTS ACTUALLY WON BY SUCH FIRMS OF COURSE PARADEBLEACHER ORDERS AND THE LIKE DON'T GUARANTEE MUCH ABOUT LONGTERM GOVERNMENT PROCUREMENT POLICY BUT SMALL COMPANIES GETTING THE ORDERS AREN'T COMPLAINING ABOUT THE BUSINESS WINDFALL AND THE DEMOCRATS AREN'T GRIPING ABOUT THE PUBLIC RELATIONS WINDFALL EITHER WHILE WOMEN AND MINORITIES HAVE GAINED A GOOD SHARE OF BUSINESS FROM DEMOCRATIC FUNCTIONS IN RECENT YEARS THEY ARE ESPECIALLY BENEFITING NOW FROM THIS YEAR'S UNUSUAL PROLIFERATION OF INAUGURATIONRELATED MERCHANDISE ERNIE JOHNSTON THE INAUGURAL COMMITTEE'S MARKETING DIRECTOR SAYS THAT FOR COMMEMORATIVE ITEMS I'VE TAKEN A VERY SPECIAL LOOK FROM THE BEGINNING AT WHETHER MINORITIES AND WOMEN WERE INVOLVED WE'RE ALL ABOUT INCLUSION THE COMMITTEE'S EFFORTS INCLUDED MEETINGS WITH AIDES TO WASHINGTON MAYOR SHARON PRATT KELLY TO FIND LOCAL MINORITYOWNED BUSINESSES ADDS RICHARD MINTZ THE COMMITTEE'S DIRECTOR OF COMMUNICATIONS THE INAUGURATION COMMITTEE ALSO SOUGHT OUT RECOMMENDATIONS FROM SOURCES SUCH AS MINORITY AND WOMEN STAFF MEMBERS AND NUMEROUS COMPANIES APPROACHED THE COMMITTEE ON THEIR OWN A BLACKOWNED APPAREL MAKER IN LOS ANGELES PRODUCED INAUGURAL SWEAT SHIRTS TSHIRTS AND CAPS A WOMANOWNED COMPANY HERE IS SELLING COLORFUL POSTERS DRAWN BY ARTISTS SUCH AS JUANE QUICKTOSEE SMITH A NATIVE AMERICAN AND THERE ARE BRISKLY SELLING PAPERWEIGHTS MADE BY A HISPANICOWNED FAMILY BUSINESS IN ALBUQUERQUE NM WOMEN AND MINORITYGROUP MEMBERS PRODUCING COMMEMORATIVE ITEMS SAY THEY AREN'T MAKING HUGE SUMS WORKING FOR THE INAUGURATION BUT BELIEVE THE PRESTIGE MAY YIELD BIG REWARDS LATER ONE OF THE PROBLEMS FOR BUSINESSES OWNED BY MINORITIES AND WOMEN IS THAT A LOT OF TIMES WE DON'T GET A CHANCE AT THE BIGTICKET ITEMS OR CONTRACTS SAYS CAROLYN HAYMON PROPRIETOR OF AN ADVERTISING SPECIALTY BUSINESS IN CLINTON MD MS HAYMON IS PEDDLING WATCHES DISPLAYING THE CLINTONGORE CAMPAIGN BANNER AND THE INAUGURAL SEAL THE WATCHES SELL FOR 36 APIECE MS HAYMON SAYS THAT SHE HOPES TO BUILD A RELATIONSHIP WITH CLINTON ADMINISTRATION OFFICIALS AND SUPPLY GIFT ITEMS FOR FUTURE EVENTS SUCH AS STATE DINNERS I HOPE THEY WON'T FORGET US AFTER THE FACT ORTIZ DESIGN INC IN ALBUQUERQUE ALREADY HAS GAINED ADDITIONAL ORDERS AFTER IMPRESSING INAUGURAL OFFICIALS WITH ITS HANDIWORK THE 12YEAROLD COMPANY WHICH MAKES CORPORATE GIFTS AND JEWELRY APPROACHED THE INAUGURAL COMMITTEE ABOUT PRODUCING PAPERWEIGHTS THE CONCERN'S NICKELANDSILVER PAPERWEIGHTS QUICKLY BECAME A POPULAR INAUGURAL SOUVENIR AT 36 EACH ACCORDING TO COMMITTEE OFFICIALS THE COMMITTEE SUBSEQUENTLY ASKED ORTIZ DESIGN TO PRODUCE A VARIETY OF OTHER ITEMS INCLUDING LETTEROPENERS BUSINESSCARD HOLDERS AND A MONEY CLIP THE FIRM'S CONTRACT FOR INAUGURATION SOUVENIRS NOW TOTALS 150000 REPORTS FRED ORTIZ WHO OWNS ORTIZ DESIGN ALONG WITH HIS WIFE ANNE THEIR THREE DAUGHTERS AND A SON ALL EITHER DESIGN AND CREATE THE ART OBJECTS OR OTHERWISE PARTICIPATE IN THE TINY FAMILY BUSINESS MONEY ISN'T THE PRIMARY INCENTIVE FOR THE FIRM'S INVOLVEMENT IN THE INAUGURAL MR ORTIZ SAYS WORKING WITH THE NEW PRESIDENT WILL BE THE MOST PRESTIGIOUS THING WE'VE EVER DONE ALTHOUGH THE COMPANY PREVIOUSLY HAS MADE ITEMS FOR THE GOVERNOR OF NEW MEXICO TO GIVE AWAY AS GIFTS MR ORTIZ ADDS WE'RE NOT REALLY POLITICIANTYPE PEOPLE INAUGURAL ITEMS ARE BEING SOLD THROUGH ANOTHER SMALL COMPANY INAUGURAL COMMEMORATIVES INC SMALL BUSINESSES OWNED BY WOMEN AND MINORITIES ARE COMING TO US BECAUSE THEY KNOW WE'RE WILLING TO BUY FROM MINORITYOWNED FIRMS SAYS PAUL STORCH PRESIDENT OF THE NEW YORK FIRM THE SOLE LICENSEE FOR THE INAUGURATION'S RETAIL AND CATALOG SALES THE COMPANY HAS BEEN GETTING ABOUT 15000 TOLLFREE CALLS A DAY FOR CATALOG MERCHANDISE ORDERS IN RECENT WEEKS MR STORCH SAYS THE FIRST RETAIL STORE IN DOWNTOWN WASHINGTON OPENED FOR BUSINESS DEC 21 AND SOLD 350000 IN MERCHANDISE IN 11 DAYS ACCORDING TO MR JOHNSTON OF THE INAUGURAL COMMITTEE FEMALE AND MINORITY ENTREPRENEURS FIND IT BOTH EXCITING AND FRUSTRATING TO PARTICIPATE IN THE INAUGURATION IT'S BEEN KIND OF A HAPPY PANDEMONIUM' SAYS ADRIANA BARBIERI ONE OF THREE OWNERS OF BARBIERI & GREEN THE WASHINGTON FIRM THAT PRODUCED AND DESIGNED THE INAUGURAL POSTER SERIES THE POSTERS DEPICT ART BY SEVERAL AMERICAN ARTISTS IT'S THE KIND OF PROJECT YOU HAVE TO GET RIGHT THE FIRST TIME MS BARBIERI ADDS ONE OF THE FIRM'S POSTERS FEATURES A PAINTING CALLED OVAL OFFICE BY ROY LICHTENSTEIN BEST KNOWN FOR HIS COMICSTRIP PAINTINGS BESIDES ACCEPTING BIDS INAUGURAL COMMITTEE OFFICIALS SAY THAT THEY PURSUED SEVERAL MINORITYOWNED AND WOMANOWNED CONCERNS WITH WELLESTABLISHED REPUTATIONS TAKE CROSS COLOURS FOR EXAMPLE A UNIT OF THREADS 4 LIFE INC IN LOS ANGELES THAT SAYS IT SOLD ABOUT 40 MILLION OF CLOTHING LAST YEAR AFTER TALLYING ABOUT 15 MILLION IN SALES IN 1991ITS FIRST YEAR IN BUSINESS CROSS COLOURS' BAGGY CASUAL APPAREL INITIALLY WAS WORN BY URBAN TEENAGERS ITS HUGE COTTON SHIRTS USUALLY COME WITH MESSAGES AIMED AT STOPPING STREET VIOLENCE AND PROMOTING RACIAL HARMONY AMONG THEM STOP THE VIOLENCE UNITY AND PEACE IN THE HOOD FOR MR CLINTON'S INAUGURATION CROSS COLOURS WON ORDERS FOR THOUSANDS OF TSHIRTS BASEBALL CAPS AND HEAVYGAUGE COTTON SWEAT SHIRTS WITH THE INAUGURAL SEAL SAYS CARL JONES THE COMPANY'S PRESIDENT THE SWEAT SHIRTS HAVE BECOME A POPULAR ITEM AT THE INAUGURAL STORES REPORTS MR STORCH OF INAUGURAL COMMEMORATIVES HELPING OUT WITH THE INAUGURATION HAS BROUGHT MR JONES ANOTHER BENEFIT TICKETS TO THE INAUGURAL EVENTS THE ENTREPRENEUR SAYS THAT HE PLANS TO ATTEND I WOULDN'T MISS THIS FOR ANYTHING IN THE WORLD 9301190023 930119 WHO'S NEWS HARLEYDAVIDSON'S DAHL QUITS AS HEAD OF HOLIDAY RAMBLER MILWAUKEE HARLEYDAVIDSON INC SAID H WAYNE DAHL RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER OF ITS HOLIDAY RAMBLER CORP SUBSIDIARY MR DAHL WILL REMAIN WITH THE COMPANY WORKING ON NEWPRODUCT DEVELOPMENT THE COMPANY NAMED MARTIN R SHOEY FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GEOSTAR CORP IN WASHINGTON DC TO SUCCEED MR DAHL HOLIDAY RAMBLER HAS BEEN A FINANCIAL DRAIN ON HARLEYDAVIDSON EVER SINCE THE MOTORCYCLE MAKER ACQUIRED IT FOR 155 MILLION IN 1987 THE ACQUISITION PRECEDED A SEVERE DOWNTURN IN THE MARKET FOR THE RECREATIONAL AND SPECIALIZED VEHICLES SUCH AS MOTOR HOMES AND TRAVEL TRAILERS THAT HOLIDAY RAMBLER MAKES HARLEYDAVIDSON'S MOTORCYCLES SEGMENT HAD OPERATING PROFIT OF 253 MILLION IN THE THIRD QUARTER ENDED LAST SEPT 27 BY CONTRAST THE HOLIDAY RAMBLER UNIT REPORTED OPERATING PROFIT OF 100000 THAT QUARTER AND A LOSS OF 4 MILLION IN THE YEAREARLIER PERIOD MR DAHL WHO HAS HEADED THE UNIT FOR MORE THAN FIVE YEARS HAD TRIED SEVERAL MANAGEMENT AND MANUFACTURING CHANGES TO TURN HOLIDAY RAMBLER AROUND IN 1990 HE HELPED BEAT BACK AN ATTEMPT BY INVESTOR MALCOLM I GLAZER WHO THEN CONTROLLED 73 OF HARLEYDAVIDSON'S STOCK TO PERSUADE THE BOARD TO SELL OR SPIN OFF HOLIDAY RAMBLER IN ANNOUNCING MR DAHL'S RESIGNATION RICHARD F TEERLINK HARLEYDAVIDSON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MR DAHL HAD EXPRESSED HIS DESIRE IN MID1992 TO MOVE AWAY FROM THE RUNNING OF HOLIDAY RAMBLER'S DAYTODAY OPERATIONS MR DAHL'S NEW ROLE WILL ALLOW HIM MORE TIME TO FOCUS ON HIS PASSION FOR TESTING AND DEVELOPING NEW PRODUCTS MR DAHL 53 YEARS OLD ALSO WILL WORK ON DEALER AND CUSTOMER RELATIONS ALONG WITH HIS RESIGNATION FROM HOLIDAY RAMBLER MR DAHL ALSO RESIGNED FROM HARLEYDAVIDSON'S BOARD THE COMPANY MADE THE ANNOUNCEMENT AFTER THE CLOSE OF THE NEW YORK STOCK EXCHANGE IN LATE TRADING HARLEYDAVIDSON SHARES WERE QUOTED AS 36875 UNCHANGED FROM FRIDAY MR TEERLINK SAID MR SHOEY 49 WHO HAS MORE THAN 20 YEARS' EXPERIENCE IN THE TRANSPORT VEHICLE BUSINESS WILL BRING TO HOLIDAY RAMBLER EXTENSIVE LEADERSHIP EXPERIENCE IN MANUFACTURING SALES MARKETING AND GENERAL MANAGEMENT 9301190022 930119 WHAT'S NEWS BUSINESS AND FINANCE CLINTON AIDES ARE PREPARING A PLAN TO STIMULATE THE ECONOMY WITH TAX CUTS AND SPENDING BOOSTS THAT WOULD WIDEN THE BUDGET DEFICIT IN THE SHORT RUN BUT THE CLINTON TEAM IS ALSO SERIOUSLY CONSIDERING A BROADBASED ENERGY TAX TO CUT THE DEFICIT IN LATER YEARS THE OFFICIALS HOPE TO OUTLINE THE PROPOSALS SIMULTANEOUSLY NEXT MONTH NO FINAL DECISIONS HAVE BEEN MADE HOUSE STAFF MEMBER CONSUELA WASHINGTON IS A LEADING CANDIDATE TO BE CLINTON'S NOMINEE TO HEAD THE SEC SHE WOULD BE THE FIRST WOMAN AND THE FIRST BLACK IN THE AGENCY'S TOP POST CENTOCOR SUSPENDED A CLINICAL TRIAL OF ITS DRUG TO TREAT BACTERIAL SHOCK AFTER FINDING EXCESS MORTALITY AMONG CERTAIN PATIENTS CENTOCOR'S STOCK PLUNGED 10875 OR 62 TO 6625 THE COMPANY HALTED SALES OF THE DRUG IN EUROPE AND ANALYSTS SAID THE PRODUCT MAY NEVER BE MARKETED IN THE US FLEDGLING BIOTECHNOLOGY COMPANIES MAY FIND IT HARDER TO RAISE MONEY IN THE MONTHS AHEAD AS INVESTORS REACT TO CENTOCOR'S LATEST PROBLEMS BUT SOME ANALYSTS ARE LESS DOWNBEAT CALLING SUCH A FEAR AN OVERREACTION LOTUS AND BORLAND'S CHIEF EXECUTIVES MET LAST MONTH TO DISCUSS A POSSIBLE MERGER OF THE RIVAL SOFTWARE COMPANIES BUT FAILED TO COME TO ANY AGREEMENT PEOPLE AT BOTH COMPANIES SAY THE MEETING SUGGESTS ONE OR BOTH COMPANIES FEEL A NEED TO POOL RESOURCES TO STEM MICROSOFT'S GROWING DOMINANCE BORLAND POSTED A LOSS AND A 9 DROP IN REVENUE FOR THE LATEST QUARTER THE RESULTS WERE WORSE THAN EXPECTED TLC BEATRICE SAID ITS CHAIRMAN AND CONTROLLING OWNER REGINALD LEWIS 50 HAS BEEN HOSPITALIZED WITH BRAIN CANCER AND IS IN A COMA HE HAS HANDED OVER CONTROL OF THE CLOSELY HELD FOOD COMPANY TO HIS HALFBROTHER XEROX IS WITHDRAWING ENTIRELY FROM THE FINANCIALSERVICES FIELD WHICH IT ENTERED ABOUT A DECADE AGO IN AN ILLFATED EFFORT TO DIVERSIFY AWAY FROM OFFICE EQUIPMENT THE COMPANY IS TAKING A 778 MILLION FOURTHQUARTER CHARGE ITS STOCK SLID 3625 TO 83 US CAR MAKERS PLAN TO BUILD 232 MORE CARS AND LIGHT TRUCKS IN THE FIRST QUARTER COMPARED WITH A YEAR AGO REFLECTING HOPES FOR A SALES REBOUND DETROIT'S BIG THREE ARE MAKING THE BIGGEST INCREASES SOME JAPANESE COMPANIES ARE CUTTING US OUTPUT PLANS FIDELITY INVESTMENTS LAUNCHED A MUTUAL FUND THAT IS OPEN TO SMALL INVESTORS AND IS ABLE TO MAKE BIG BETS ON STOCKS BONDS AND CURRENCIES AROUND THE WORLD WITH FEW LIMITATIONS MAKING IT RESEMBLE HEDGE FUNDS THAT NORMALLY CATER ONLY TO LARGE INVESTORS NATIONSBANK POSTED A 234 MILLION FOURTHQUARTER PROFIT REVERSING A YEAREARLIER LOSS THE BANK COMPANY'S RESULTS WERE HELPED BY WIDER INTEREST MARGINS AND IMPROVED LOAN QUALITY FRANKFURT STOCK PRICES SURGED FOR A SECOND DAY AS INVESTORS LOOKED FORWARD TO AN AGREEMENT ON THE FINANCING OF EASTERN GERMANY'S RECONSTRUCTION FOUR CITIBANK EXECUTIVES RESIGNED FROM THE CITICORP UNIT'S INDIAN OPERATIONS AMID ALLEGATIONS THAT THE COMPANY WAS INVOLVED IN A SCANDAL LAST YEAR AT THE BOMBAY STOCK MARKET COFFEE FUTURES PRICES SLID AMID CONCERNS ABOUT A GLUTTED MARKET AND SKEPTICISM THAT AN ACCORD ON EXPORT QUOTAS CAN BE REACHED NEXT WEEK PRIMERICA'S PROFIT JUMPED 68 IN THE FOURTH QUARTER BOLSTERED BY ASSET SALES AND STRONGER OPERATING RESULTS BONDS MARKET CLOSED BECAUSE OF THE MARTIN LUTHER KING HOLIDAY COMMODITIES OIL 1887 A BARREL UNCHANGED DOW JONES FUTURES INDEX 12257 UP 008 SPOT INDEX 12363 OFF 021 DOLLAR 12550 YEN OFF 058 16135 MARKS OFF 00222 9301190020 930119 REVIEW & OUTLOOK EDITORIAL DEFICIT' = TAX INCREASE AS VETERAN BELTWAY WATCHERS WE THINK WE KNOW THE LOCAL RITUALS AS WELL AS ANYONE SO WE'RE BEGINNING TO WORRY THAT THE TOMTOMS THAT HAVE BEGUN TO BEAT DEFICIT DEFICIT ARE SETTING US UP FOR A GIGANTIC TAX INCREASE IT'S OMINOUS THAT BILL CLINTON'S ECONOMIC ADVISERS HAVE BEGUN THE REVENUE RAIN DANCE EVEN BEFORE TAKING OFFICE LEON PANETTA MR CLINTON'S NEW BUDGET DIRECTOR STARTED THINGS OFF LAST MONDAY BY FRETTING TO CONGRESS THAT SOMEHOW THE DEFICIT WAS WORSE THAN ANYONE HAD THOUGHT AS IF MR PANETTA HADN'T HAD ACCESS TO THE NUMBERS AS HEAD OF THE HOUSE BUDGET COMMITTEE EVERYONE WILL HAVE TO SACRIFICE MR PANETTA SAID A WORD WE HAVEN'T HEARD VERY MUCH OVER THE LAST 12 YEARS ACTUALLY WE'VE HEARD THAT VERY WORD IN 1990 1988 1987 AND EVERY OTHER YEAR IN THE LAST 12 THAT POLITICIANS HAVE SOFTENED THE GROUND FOR A TAX HIKE LLOYD BENTSEN WHO WILL SOON TAKE OVER AT TREASURY THEN APPEARED TO ASSERT THAT REDUCING THE DEFICIT TOOK PRECEDENCE OVER ANY TAX CUTS IN CASE ANYONE STILL DIDN'T GET THE MESSAGE MR BENTSEN'S DEPUTYDESIGNATE ROGER ALTMAN SHOWED UP A DAY LATER TO MENTION I DO THINK THAT ONE FORM OR ANOTHER OF A NEW TAX ON CONSUMPTION IS IN ORDER HE CITED A GAS TAX OR ANOTHER SORT OF ENERGY TAX OR EVEN POSSIBLY A NATIONAL SALES TAX THEN ON SUNDAY AL GORE DISCLOSED THAT WHILE THERE WON'T BE A GAS TAX AN ENERGY TAX WAS VERY MUCH ALIVE THIS WOULD OF COURSE BE IN ADDITION TO THE INCOME TAX INCREASE THAT MR CLINTON IS SURE TO IMPOSE ON THE RICH OR AT LEAST THOSE RICH WHO DIDN'T TAKE THEIR INCOMES IN PRECLINTON BONUSES WHAT WE FEAR IS GOING ON HERE IS THAT THE FLEDGLING CLINTON CREW IS ADOPTING THE BELTWAY'S SINGLEENTRY BOOKKEEPING THE POLITICAL ESTABLISHMENT'S BIGGEST COLLECTIVE SECRET IS THAT THE FEDERAL BUDGET HAS TWO ENTRIES REVENUES AND OUTLAYS THE CLINTON PRESIDENCY WILL BE CHASING A MIRAGE IF IT THINKS IT CAN EVER FIND ENOUGH TAX REVENUE TO CLOSE THE DEFICIT WITHOUT ALSO CONTROLLING OUTLAYS THAT'S CLEAR FROM THE BUDGET CHART WE'VE PUBLISHED FROM TIME TO TIME IN THE REPUBLICAN YEARS AND IS JUST AS RELEVANT IN THE CLINTON ERA IT SHOWS THAT EXCEPT FOR THE INFLATIONFILLIP OF THE LATE 1970S AND EARLY 1980S WHICH HELPED FUEL THE TAX REVOLT REVENUES HAVE REMAINED FAIRLY CONSTANT BETWEEN 18 AND 19 OF GDP THE REAGAN TAX CUTS WERE LONG AGO REPEALED IN THEIR EFFECT ON THE FEDERAL TREASURY OUTLAYS MEANWHILE STAGED A BREAKOUT IN THE MID1970S AND ARE STILL RUNNING WILD THE LATE REAGAN BUDGETS SLOWED THE SPENDING BOOM FOR A TIME BUT IT TOOK OFF AGAIN UNDER GEORGE BUSH RISING TO NEARLY 24 OF GDP IN 1993 NOTICE THAT THE SPENDING BREAKOUT BEGAN IN 1975 THE VERY FIRST YEAR AFTER CONGRESS PASSED THE BUDGET CONTROL ACT WHICH THREW OUT A PRESIDENT'S POWER TO IMPOUND FUNDS UNDER CURRENT LAW MOREOVER THOSE OUTLAYS WILL CONTINUE TO BOOM MEDICAID ALONE WILL INCREASE BY SOME 150 TO 156 BILLION FROM 1992 TO 1998 WHILE MEDICARE WILL MORE THAN DOUBLE TO 235 BILLION EVEN ASSUMING THAT OTHER SPENDING STAYS CONSTANT A FANCIFUL ASSUMPTION MR CLINTON COULD RAISE EVERY TAX THERE IS AND EVEN SOME NEW ONES AND STILL RUN A DEFICIT MEANWHILE HE'D ALSO BE DAMAGING A FRAGILE ECONOMIC EXPANSION THAT DOESN'T NEED NEW FISCAL BURDENS THE LAST YEAR THE DEFICIT WAS AS LARGE AS IT IS EXPECTED TO BE IN 1993 53 OF GDP WAS IN 1986 THAT YEAR THE ECONOMY GREW BY 54 WITH 19 INFLATION AND A PRIME INTEREST RATE OF 88 THE DEFICIT ISN'T HELPFUL BUT IT WILL BECOME CATASTROPHIC ONLY IF MR CLINTON TAKES THE ADVICE OF THOSE WHO WANT TO PILE ON MORE TAXES MR CLINTON UNDERSTOOD THIS AS A CANDIDATE WHEN HE SAID THE GOAL SHOULD BE TO REDUCE THE DEFICIT GRADUALLY AS A SHARE OF THE ECONOMY IN ANY EVENT WE DOUBT MR CLINTON CAN POLITICALLY AFFORD TO ADDRESS THE DEFICIT WITH TAXES ALONE OR EVEN SUBSTANTIALLY THE PUBLIC HAS BEEN TOLD TOO MANY TIMES MOST RECENTLY DURING THE 1990 BUDGET FOLLIES THAT ONE MORE TAX INCREASE WILL ELIMINATE THE DEFICIT WE DOUBT THAT MR CLINTON WAS ELECTED TO IMPLEMENT JUST ANOTHER GRANDER VERSION OF THE MITCHELLDARMAN BUDGET COMPROMISE 9301190019 930118 WHAT'S NEWS WORLDWIDE THE US FIRED MORE THAN 40 CRUISE MISSILES AT AN INSTALLATION NEAR BAGHDAD THE ATTACK WHICH CAME EXACTLY TWO YEARS AFTER THE START OF THE GULF WAR WAS DIRECTED AT AN IRAQI NUCLEARWEAPONS SITE US OFFICIALS SAID DURING THE ASSAULT IRAQI TRACER BULLETS AND ANTIAIRCRAFT FIRE ILLUMINATED THE NIGHT SKY OVER THE CAPITAL AT LEAST THREE PEOPLE WERE REPORTED KILLED AND 30 WOUNDED IRAQI OFFICIALS SAID AND A DOWNTOWN HOTEL WAS DAMAGED BY AN EXPLOSION THE CRUISEMISSILE BARRAGE FOLLOWED A TENSE MORNING OF CONFRONTATIONS IN THE NORTH AND SOUTH OF IRAQ INCLUDING A US PLANE'S DOWNING OF A MIG23 IN THE NORTHERN NOFLY ZONE UN OFFICIALS LATE YESTERDAY REJECTED IRAQ'S LATEST CONDITIONS FOR PERMITTING WEAPONS INSPECTION FLIGHTS INTO THE COUNTRY RAISING THE POSSIBILITY OF FURTHER USLED MILITARY ACTIONS CLINTON IS PREPARED TO NAME 100 SUBCABINET OFFICIALS AS EARLY AS THIS WEEK THE PRESIDENTELECT HAS BEEN CRITICIZED FOR FAILING TO MOVE MORE QUICKLY ON PERSONNEL MATTERS DECIDING WHICH BUSH APPOINTEES REMAIN AND WHICH MUST LEAVE HAS BEEN A SOURCE OF FRICTION BETWEEN CLINTON AND BUSH AIDES THE WHITE HOUSE MADE PUBLIC EXCERPTS OF BUSH'S TAPERECORDED DIARIES FROM LATE 1986 WHICH DEPICT THE CONFUSION IN THE REAGAN WHITE HOUSE OVER THE IRANCONTRA SCANDAL THE DIARIES SHOW BUSH CONCERNED ABOUT THE POLITICAL FALLOUT AND VACILLATING OVER HOW TO DEAL WITH THENSECRETARY OF STATE SHULTZ SESSIONS WILL FIGHT A JUSTICE DEPARTMENT REPORT THAT SAYS HE VIOLATED ETHICAL STANDARDS AIDES SAID THE REPORT WAS SUMMARIZED IN A LETTER TO THE FBI CHIEF FROM ATTORNEY GENERAL BARR WHO TOLD SESSIONS TO REIMBURSE THE BUREAU FOR A FENCE AT HIS HOME AND TO PAY TAXES FOR USE OF A LIMOUSINE A UN ENVOY SAID HAITI'S ARMY AND GOVERNMENT AGREED TO THE DEPLOYMENT OF FOREIGN OBSERVERS AND TALKS AIMED AT REINSTATING DEMOCRACY ON FRIDAY THE US COAST GUARD SAID IT WOULD FORM A BLOCKADE AROUND HAITI TO HALT A REFUGEE EXODUS ZOE BAIRD WAS FINED 2900 BY THE IMMIGRATION AND NATURALIZATION SERVICE FOR HIRING ILLEGAL IMMIGRANTS AS DOMESTICS ON JAN 5 THE ATTORNEY GENERALDESIGNATE AND HER HUSBAND PAID 12000 IN BACK SOCIAL SECURITY TAXES ON WAGES FOR THE PERUVIAN COUPLE HOMOSEXUALS HAVE A FUNDAMENTAL RIGHT NOT TO HAVE THE STATE ENDORSE AND GIVE EFFECT TO PRIVATE BIASES A COLORADO STATE JUDGE RULED IN BLOCKING A STATEWIDE BAN ON GAYRIGHTS PROTECTIONS FROM TAKING EFFECT ON FRIDAY A FEDERAL JUDGE UNSEALED COURT PAPERS THAT REFLECT TENSION BETWEEN REP ROSTENKOWSKI AND THE US ATTORNEY IN WASHINGTON OVER NEWS ACCOUNTS OF A GRAND JURY INQUIRY INTO THE ILLINOIS DEMOCRAT'S PERSONAL FINANCES THE DOCUMENTS ALLEGE THE GOVERNMENT UNLAWFULLY DISCLOSED CONFIDENTIAL DATA THE US HOPES TO BEGIN TRANSFERRING MILITARY CONTROL OF SOMALIA OVER TO A UN COMMAND PERHAPS WITHIN TWO WEEKS A MARINE SPOKESMAN SAID ON SATURDAY US TROOPS IN MOGADISHU DISCOVERED AN ARMS CACHE THAT INCLUDED ROCKETS ARTILLERY SHELLS MORTAR ROUNDS AND ANTITANK MINES MUSLIMS AND THEIR CROAT ALLIES TURNED AGAINST EACH OTHER IN CLASHES IN CENTRAL BOSNIA WHILE RENEWED BATTLES FLARED BETWEEN MUSLIMS AND SERBS ON THE BORDER WITH SERBIA THE INCREASED FIGHTING CAME TWO DAYS BEFORE BOSNIA'S SERB LEADERS ARE SCHEDULED TO VOTE ON AN INTERNATIONAL PEACE PLAN THE POSTAL SERVICE WON A FEDERAL APPEALS COURT RULING THAT UPHOLDS THE AGENCY'S INDEPENDENCE FROM THE BUSH ADMINISTRATION IN LITIGATING RATEMAKING CASES THE RULING ON FRIDAY THWARTS THE PRESIDENT'S EFFORTS TO FIRE SOME MEMBERS OF THE AGENCY'S BOARD PRIME MINISTER MIYAZAWA DECLARED THAT HE OPPOSES THE RECENT EFFORTS BY SOME JAPANESE POLITICAL LEADERS TO CHANGE THE COUNTRY'S PACIFIST CONSTITUTION AND TO WIDEN TOKYO'S MILITARY ROLE IN VARIOUS UN PEACEKEEPING ACTIVITIES DIED SAMMY CAHN 79 ACADEMY AWARDWINNING LYRICIST WHO WROTE THREE COINS IN THE FOUNTAIN CALL ME IRRESPONSIBLE AND HUNDREDS OF OTHER SONGS FRIDAY IN LOS ANGELES OF CONGESTIVE HEART FAILURE 9301190018 930119 CROWN RESOURCES SUSPENDS TALKS DENVER CROWN RESOURCES CORP SAID IT SUSPENDED TALKS WITH THIRD PARTIES ABOUT POSSIBLE BUSINESS COMBINATIONS THAT AMONG OTHER THINGS COULD HAVE RESULTED IN A CHANGE OF OWNERSHIP OF THE GOLD EXPLORATION COMPANY CROWN SAID THE INVESTMENT CLIMATE HAS DETERIORATED BECAUSE OF A RECENT DECLINE IN GOLD PRICES CROWN SAID IT WILL NOW FOCUS ON LONGTERM STRATEGIES INCLUDING COSTCUTTING PROGRAMS 9301190017 930119 WHAT'S NEWS WORLDWIDE ALLIED AIRCRAFT BOMBED AIRDEFENSE FACILITIES IN SOUTHERN IRAQ IN A DAYLIGHT RAID ABOUT 70 US BRITISH AND FRENCH PLANES ATTACKED IRAQ FOR THE THIRD TIME IN SIX DAYS REVISITING TARGETS FROM WEDNESDAY'S ACTION BUT SIGNS OF UNEASE EMERGED WITHIN THE UNLED COALITION AGAINST IRAQ RUSSIA CALLED FOR A SECURITY COUNCIL MEETING CITING SUNDAY'S US CRUISE MISSILE ATTACK THAT RESULTED IN CIVILIAN CASUALTIES IN THE US MILITARY ANALYSTS WONDERED WHETHER CLINTON WOULD HAVE ANY CHOICE BUT TO CONTINUE THE US POLICY OF LIMITED MILITARY ACTION IN RESPONSE TO PROVOCATIONS BY BAGHDAD WASHINGTON OFFICIALS CONFIRMED THAT AN EXPLOSION AT A BAGHDAD HOTEL ON SUNDAY WAS CAUSED BY A US CRUISE MISSILE WHICH THEY SAID HAD BEEN KNOCKED OFF COURSE BY ANTIAIRCRAFT FIRE RUSSIA'S CONSERVATIVE PREMIER RESCINDED AN ORDER THAT WOULD HAVE EXTENDED STATE PRICE CONTROLS OVER A RANGE OF BASIC GOODS CHERNOMYRDIN'S PRICEFIXING DECREE ISSUED DEC 31 HAD BEEN CRITICIZED BY ECONOMIC REFORMERS HIS POLICY REVERSAL IS REGARDED AS AN EMBARRASSMENT FOR THE NEW PRIME MINISTER TWO COMMUTER TRAINS SIDESWIPED EACH OTHER ON A NARROW STRETCH OF TRACK IN GARY IND KILLING SEVEN PEOPLE AND INJURING 69 AN OFFICIAL SAID IT TOOK RESCUERS TWO HOURS TO REMOVE ALL THE VICTIMS TRAPPED IN THE WRECKAGE FROM THE CRASH WHICH OCCURRED SHORTLY AFTER THE MORNING RUSH HOUR CLINTON PLEDGED TO LEARN FROM THE LIFE OF MARTIN LUTHER KING JR SAYING THAT ONE OF HIS REGRETS AS A SOUTHERNER WAS NEVER HAVING MET KING THE PRESIDENTELECT IN A SPEECH DELIVERED AT HOWARD UNIVERSITY IN WASHINGTON PRAISED THE SLAIN CIVILRIGHTS LEADER AS THE MOST ELOQUENT VOICE FOR FREEDOM AND JUSTICE IN MY LIFETIME HAITIANS LARGELY BOYCOTTED PARLIAMENTARY ELECTIONS THAT THE MILITARYBACKED GOVERNMENT HELD IN DEFIANCE OF INTERNATIONAL DIPLOMATS SEEKING TO NEGOTIATE A SETTLEMENT TO THE COUNTRY'S POLITICAL CRISIS THE GOVERNMENT PROCEEDED WITH THE VOTE DESPITE OBJECTIONS FROM WESTERN NATIONS AND THE UN WHICH CALLED THE BALLOTING ILLEGITIMATE AT LEAST NINE PEOPLE WERE REPORTED DEAD IN SOUTHERN CALIFORNIA IN THE WAKE OF STORMS THAT CAUSED MILLIONS OF DOLLARS IN PROPERTY DAMAGE OVER THE WEEKEND MAJOR HIGHWAYS AND HUNDREDS OF SECONDARY ROADS WERE CLOSED THROUGHOUT THE REGION DUE TO FLOODS AND MUDSLIDES A FUGITIVE DRUG CARTEL LEADER VOWED TO RESUME HIS GROUP'S STRUGGLE AGAINST THE BOGOTA GOVERNMENT WITH A PRIVATE ARMY HE WOULD LEAD HIMSELF IN A HANDWRITTEN LETTER SENT TO COLOMBIA'S ATTORNEY GENERAL ESCOBAR REJECTED ANY POSSIBILITY OF SURRENDER THE LEADER OF THE MEDELLIN CARTEL ESCAPED FROM PRISON LAST SUMMER THE FIRST US MARINES PREPARED TO LEAVE SOMALIA TODAY BUT THOUSANDS MORE WILL REMAIN TO HELP THE FAMINESTRICKEN COUNTRY MOVE TOWARD A LONGTERM POLITICAL SOLUTION WASHINGTON HAD WANTED TO WITHDRAW MOST OF THE US TROOPS BEFORE CLINTON'S INAUGURATION BUSH ADMINISTRATION OFFICIALS NOW GIVE NO DATE FOR ENDING THE US PRESENCE UKRAINE'S PRESIDENT SAID HE WANTED MORE ASSURANCES OF ECONOMIC AND POLITICAL INDEPENDENCE BEFORE SIGNING A CHARTER OF THE COMMONWEALTH OF INDEPENDENT STATES SPEAKING IN ADVANCE OF FRIDAY'S MEETING OF FORMER SOVIET REPUBLIC LEADERS KRAVCHUK SAID HE WAS WARY OF ANY ATTEMPTS TO REGULATE UKRAINE'S FOREIGN TRADE BATTLES RAGED ACROSS ANGOLA AFTER REBELS SWORE NOT TO NEGOTIATE UNTIL THE GOVERNMENT HALTS ITS MILITARY OFFENSIVES ONE BATTLE AT HUAMBO WAS SAID TO INVOLVE 10000 GUERRILLAS THE REBELS ALSO ATTACKED SOYO AFTER PORTUGUESE OIL WORKERS WERE EVACUATED BOSNIAN MUSLIMS REPORTEDLY FIRED INTO SERBDOMINATED YUGOSLAVIA FOR THE SECOND DAY THREATENING TO WIDEN THE CONFLICT THAT HAS ROCKED EASTERN BOSNIA MEANWHILE CLASHES INTENSIFIED BETWEEN CROATS AND MUSLIMS IN CENTRAL BOSNIA STRAINING THEIR UNEASY ALLIANCE AGAINST SERB MILITARY FORCES IN THE NINEMONTHOLD WAR A GROUNDED TANKER HAS LEAKED THOUSANDS OF GALLONS OF OIL INTO THE WATERS OFF ESTONIA'S CAPITAL THE VESSEL WHICH WENT AGROUND SATURDAY OFF TALLINN WAS SAID TO BE IN DANGER OF BREAKING APART HIGH WINDS PREVENTED RESCUE OF THE SHIP'S CREW EARLIER THIS MONTH A GROUNDED TANKER OFF THE SHETLAND ISLANDS SPILLED 24 MILLION GALLONS OF OIL 9301190016 930119 LAW LEGAL BEAT LAW SCHOOLS UPDATE ETHICS CLASSES TO INVOLVE STUDENTS MORE DIRECTLY BY JUNDA WOO AND MILO GEYELIN STAFF REPORTERS OF THE WALL STREET JOURNAL CONCERNED THAT THEIR LEGALETHICS LESSONS AREN'T SINKING IN SOME LAW SCHOOLS ARE GOING BACK TO THE DRAWING BOARD AFTER THE WATERGATE AFFAIR IN WHICH 29 LAWYERS WERE JAILED OR DISBARRED LAW DEANS ADDED ETHICS COURSES OR URGED THEIR PROFESSORS TO RAISE ETHICAL CONCERNS AS THEY TAUGHT SUBSTANTIVE LAW BUT THESE APPROACHES HAVE RECEIVED LOW SCORES FROM STUDENTS WHO TYPICALLY CHARACTERIZE THE TRAINING EITHER AS TOO NARROWLY FOCUSED ON RULES OR TOO UNREALISTIC TO BE USEFUL IN ADDITION ETHICS PROFESSORS HAVE GRUMBLED THAT COLLEAGUES SEE THEIR WORK AS UNINTELLECTUAL NOW IN RESPONSE TO SUCH STUDENT AND FACULTY COMPLAINTS AND TO NEW ETHICAL LAPSES IN THE BAR SEVERAL LAW SCHOOLS ARE CASTING ASIDE TRADITIONAL LECTURES IN FAVOR OF VIDEOS ROLEPLAYING AND OTHER APPROACHES THAT INVOLVE STUDENTS MORE DIRECTLY COLUMBIA UNIVERSITY SCHOOL OF LAW FOR EXAMPLE WILL BEGIN A MANDATORY INTENSIVE EIGHTDAY ETHICS COURSE THIS FALL FOR THIRDYEAR STUDENTS PRACTICING ATTORNEYS TRAINED TO TEACH BY THE COLUMBIA FACULTY WILL DISCUSS REALLIFE ETHICAL PROBLEMS THE COURSE ALSO INCLUDES FILMS PORTRAYING CLIENTS AND LAWYERS GRAPPLING WITH ETHICAL ISSUES AS PART OF THE COURSE THE STUDENTS ALSO WILL BE REQUIRED TO PLAY THE ROLES IN ACTING OUT ETHICS CONFLICTS THE KIDS ARE DESPERATE FOR A CHANCE TO TRY IT OUT THEMSELVES SAID HARRIET S RABB A COLUMBIA VICE DEAN WHO IS PUTTING THE CLASS TOGETHER THERE IS IMMENSE INTEREST PREVIOUSLY THE SCHOOL TAUGHT ETHICS WITH WHAT IS KNOWN AS THE PERVASIVE METHOD WHICH MEANT MS RABB SAID THAT FACULTY MEMBERS WOULD GET PERIODIC MEMOS REMINDING THEM TO DISCUSS ETHICS IN THEIR REGULAR CLASSES NO FACULTY MEMBER SPECIALIZED IN TEACHING ETHICS AND SOME OUTSIDE LECTURERS WOULD SKIP THE CLASSES WITHOUT WARNING IT TOLD THE STUDENTS THAT IT WASN'T WORTH THEIR ATTENTION SHE SAID OTHER SCHOOLS SUCH AS FORDHAM UNIVERSITY SCHOOL OF LAW HAVE CHANGED THEIR PROGRAMS TO FOCUS ON HOW ETHICS SPECIFICALLY APPLIES TO INTERNATIONAL BUSINESS TRANSACTIONS TRIAL ADVOCACY AND OTHER SPECIFIC AREAS OF LAW AND SOME SCHOOLS HAVE INTEGRATED THE TEACHING OF ETHICS INTO THEIR PRACTICALLAWYERING CLASSES TEACHING ETHICS JUST AS THEY DO TRIAL SKILLS AT THE COLLEGE OF WILLIAM AND MARY IN WILLIAMSBURG VA FOR EXAMPLE STUDENTS DIVIDE UP INTO LAW OFFICES AND SQUARE OFF AGAINST EACH OTHER HONING THEIR LITIGATION SKILLS AND ETHICAL SENSES AT THE SAME TIME IN THE NEW COURSES TRADITIONAL ETHICAL PROBLEMS AREN'T THE ONLY MATTERS COVERED ALONG WITH LOOKING AT HOW THE NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER GOT INTO TROUBLE WITH THRIFT REGULATORS THE CLASSES SERVE UP DISCUSSIONS OF BROADER VALUES A TEACHING FILM PUT TOGETHER BY STEPHEN GILLERS A PROFESSOR OF LEGAL ETHICS AT NEW YORK UNIVERSITY SCHOOL OF LAW ADDRESSES THE CONFLICTS OF BALANCING CAREER AND FAMILY AND THE IMPACT SUCH DECISIONS HAVE ON WORK AT A LAW FIRM NEITHER SIDE HAS ALL THE ARGUMENTS SAID PROF GILLERS WHOSE FILM IS PART OF THE LAW SCHOOL'S ETHICS PROGRAM THE EMOTIONAL RESPONSE CREATED BY THE VIDEOS TAKES THE STUDENTS TO A NEW POINT THAT I HAD NOT PREVIOUSLY BEEN ABLE TO ACHIEVE WHY MAKE CHANGES NOW PROFESSORS SAY THAT ONE IMPETUS HAS BEEN THE ATTENTION THE COURTS AND THE PUBLIC HAVE PAID TO RECENT CASES INVOLVING ETHICS THE LINCOLN S&L MICHAEL MILKEN THERE ARE JUST EXPLOSIONS OF ETHICS SCANDALS SAID CARRIE J MENKELMEADOW A LEGALETHICS PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES ANOTHER FACTOR IS THAT THE WM KECK FOUNDATION LOS ANGELES STARTED A FLURRY OF GRANTS TO LEGALETHICS PROGRAMS IN 1991 SO FAR IT HAS GIVEN OUT 24 MILLION TO 10 UNIVERSITIES AND ASSOCIATIONS INCLUDING COLUMBIA UCLA AND YALE A FOUNDATION SPOKESWOMAN SAID ITS DIRECTORS THOUGHT LEGAL ETHICS WAS AN AREA WHERE THEIR MONEY COULD MAKE A DIFFERENCE SKEPTICS QUESTION HOW CLOSELY EVEN VIDEOS AND ROLEPLAYING CAN REPRODUCE THE REALLIFE PRESSURES YOUNG LAWYERS FACE TO GET AHEAD KEEP ONE'S JOB OR PLEASE A CLIENT THERE IS NO QUESTION THAT INSTRUCTION IN LEGAL ETHICS IS LIMITED IN ITS EFFECTIVENESS BY THE REALITY OF LAW PRACTICE SAID GEOFFREY C HAZARD JR A LEGALETHICS PROFESSOR AT YALE UNIVERSITY HOWEVER MR HAZARD AND OTHER ETHICS PROFESSORS SAY THAT SOME INSTRUCTION IS BETTER THAN NONE BUT ATTORNEYS HAVE REPEATEDLY SAID IN SURVEYS THAT THEIR ETHICS INSTRUCTION WAS USEFUL SAID DEBORAH L RHODE WHO TEACHES LEGAL ETHICS AT STANFORD LAW SCHOOL TO ACKNOWLEDGE THAT WE CAN DO LITTLE DOES NOT MEAN THAT WE SHOULD DO NOTHING BIG JURY AWARDS GOT BIGGER LAST YEAR THOUGH SOME OF THE BIGGEST WERE REDUCED OR THROWN OUT BY JUDGES ACCORDING TO AN ANNUAL SURVEY BY THE NATIONAL LAW JOURNAL EIGHT VERDICTS TOPPED 100 MILLION IN 1992 INCLUDING ONE FOR 5 BILLION AND ANOTHER FOR 35 BILLION IN 1991 ONLY TWO JURY AWARDS SURPASSED 100 MILLION ONE WAS LATER SET ASIDE AND THE OTHER WAS DRASTICALLY REDUCED THE SURVEY NOTED AN INCREASE IN MEGAAWARDS AGAINST ACCOUNTING FIRMS FOR SECURITIES FRAUD AND NEGLIGENCE AND AGAINST INSURANCE COMPANIES FOR BAD FAITH THERE WAS A DECREASE IN HUGE LIBEL VERDICTS AGAINST PUBLISHERS THE LAW JOURNAL REPORT LOOKED AT A SAMPLING OF THE LARGEST AWARDS BUT DIDN'T REFLECT TRENDS IN THE AVERAGE SIZE OF JURY VERDICTS NATIONALLY THE BIGGEST AWARD OF THE YEAR A 5 BILLION WRONGFULDEATH VERDICT AGAINST A CONVICTED SERIAL KILLER WHO DIED IN PRISON WILL NEVER BE COMPLETELY COLLECTIBLE THE LAW JOURNAL WROTE THE SECOND LARGEST 35 BILLION IN A SECURITIES FRAUD CASE AGAINST CHARLES H KEATING LINCOLN SAVINGS & LOAN ASSOCIATION AND SEVERAL OTHER DEFENDANTS WAS REDUCED AFTER TRIAL TO 175 BILLION TWO OF LAST YEAR'S MAMMOTH VERDICTS CAME AGAINST ACCOUNTING FIRMS PRICE WATERHOUSE WAS HIT WITH A 338 MILLION AWARD OVER AN ALLEGEDLY FAULTY AUDIT OF A BANK THAT IT PROVIDED FOR A BRITISH BUYER STANDARD CHARTERED PLC AND A GROUP OF INVESTORS CONVINCED BY COOPERS & LYBRAND AND A SAN FRANCISCO INVESTMENT FIRM THAT MINISCRIBE WAS A SAFE INVESTMENT WON 5587 MILLION AFTER THE DISK DRIVE MANUFACTURER COLLAPSED IN 1989 BUT THE PRICE WATERHOUSE VERDICT WAS SET ASIDE BY THE TRIAL JUDGE BECAUSE THE JURY'S AWARD OF 38 MILLION FOR FRAUD WAS IRRECONCILABLY INCONSISTENT WITH ITS AWARD OF 3312 MILLION FOR NEGLIGENCE AND THE SUIT AGAINST MICROSCRIBE WAS SUBSEQUENTLY SETTLED OUT OF COURT FOR AN UNDISCLOSED AMOUNT INSURANCE COMPANIES CONTINUED TO FARE POORLY IN SUITS ALLEGING THAT THEY OPERATED IN BAD FAITH ACCORDING TO THE SURVEY IN FOUR SUITS ALONE JURIES IN TEXAS AND CALIFORNIA AWARDED A TOTAL OF 1068 MILLION IN DAMAGES FOR ALLEGED BAD FAITH IN ONE CASE IN BAKERSFIELD CALIF A JURY AWARDED A PARAPLEGIC 335 MILLION AFTER AN INSURANCE ADJUSTER FOR AETNA CASUALTY & SURETY CO WAS FOUND TO HAVE FALSELY STATED TO HIM THAT HE HAD NO CLAIM THE JUDGE IN THE CASE ADDED 10 MILLION IN PREJUDGMENT INTEREST AETNA IS APPEALING JURY AWARDS FOR LIBEL HAD BEEN RIDING HIGH IN 1990 AND 1991 WITH MULTIMILLION VERDICTS IN PENNSYLVANIA TEXAS AND NEW YORK BUT LAST YEAR THERE WERE NO LIBEL AWARDS OF MORE THAN 1 MILLION ACCORDING TO THE SURVEY A FEDERAL JUDGE HAS MADE IT MORE DIFFICULT FOR BIG CORPORATIONS TO PASS ON THE COST OF CLEANING UP TOXICWASTE DUMPS TO HOMEOWNERS AND SMALL BUSINESSES JUDGE PETER C DORSEY IN NEW HAVEN CONN RULED THAT UNDER THE FEDERAL SUPERFUND LAW A DISCARDED SPRAY CAN OR COUCH IS NOT HAZARDOUS WASTE EVEN THOUGH SUCH ITEMS MIGHT CONTAIN ELEMENTS THAT ARE IDENTIFIED AS HAZARDOUS BY THE ENVIRONMENTAL PROTECTION AGENCY IN THE CASE A COALITION OF 19 LARGE COMPANIES INCLUDING UNIROYAL CHEMICAL CO AND UNISYS CORP HAD ARGUED THAT 1000 HOMEOWNERS AND SMALL BUSINESSES SHOULD BE REQUIRED TO HELP PAY FOR THE CLEANUP OF A DUMPSITE IN LAUREL PARK CONN THE LARGE COMPANIES HAVE BEEN ACCUSED BY THE GOVERNMENT OF DUMPING HAZARDOUS WASTE AT THE SITE ALTHOUGH JUDGE DORSEY REJECTED THE REQUEST TO MAKE THE HOMEOWNERS AND SMALL COMPANIES SHARE IN THE CLEANUP COSTS HE RULED THAT 20 MUNICIPALITIES ACCUSED OF DUMPING HAZARDOUS WASTE AT THE SITE CAN STILL BE SUED FOR THEIR CONTRIBUTION THE DISPUTE IS TYPICAL OF THE LEGAL TACTIC PURSUED BY OTHER LARGE COMPANIES TO SPREAD THE COST OF SUPERFUND WASTESITE CLEANUPS TO SMALL BUSINESS SCHOOL DISTRICTS MUNICIPALITIES AND HOMEOWNERS LAWYERS ON BOTH SIDES SAID JUDGE DORSEY'S RULING VEERS SHARPLY FROM THE WAY OTHER COURTS HAVE HANDLED THE ISSUE I THINK THE RULING SHOULD GIVE COMPANIES WHO HAVE POLLUTED THE ENVIRONMENT SOME PAUSE BEFORE THEY ATTEMPT TO TRANSFER THEIR LIABILITY TO INNOCENT PARTIES SAID MARK MININBERG A PARTNER WITH MININBERG & ASSOCIATES IN NEW HAVEN WHICH REPRESENTED THE HOMEOWNERS AND SMALL BUSINESSES WILLIAM A BUTLER A PARTNER WITH POWELL GOLDSTEIN FRAZER & MURPHY IN WASHINGTON DC WHICH REPRESENTED THE MUNICIPALITIES SAID JUDGE DORSEY'S RATIONALE PROVIDES HIM WITH AN ARGUMENT FOR EVENTUALLY GETTING THE CASE DISMISSED AGAINST THE SMALL TOWNS AS WELL IF THE PARTIES FOR WHOM THE MUNICIPALITIES HAVE COLLECTED THE WASTE ARE DISMISSED THE MUNICIPALITIES OUGHT TO BE DISMISSED HE SAID JOHN O'LEARY A PARTNER WITH PIERCE ATWOOD SCRIBNER ALLEN SMITH & LANCASTER IN PORTLAND MAINE WHO REPRESENTED THE LARGE COMPANIES SAID THE RULING WAS LEGALLY AND FACTUALLY ERRONEOUS BUT BECAUSE THE RULING WAS PROCEDURAL IT CAN'T BE APPEALED AT THIS TIME HE SAID ALTHOUGH JUDGE DORSEY DISMISSED THE CASE AGAINST THE HOMEOWNERS AND SMALL BUSINESSES MR O'LEARY SAID THE JUDGE'S DECISION LEAVES OPEN THE POSSIBILITY THAT A NEW SUIT CAN BE FILED IF THE LARGE COMPANIES MAKE A STRONGER CASE FOR REQUIRING THAT THEY SHARE IN THE CLEANUP COSTS CITING THAT POSSIBILITY THE LARGE COMPANIES HAVE MAILED LETTERS TO ALL THE PARTIES URGING THEM TO CONSIDER SETTLING OUT OF COURT DESPITE JUDGE DORSEY'S RULING MANVILLE CORP DOESN'T THINK CANADIAN ASBESTOS CLAIMS ARE ANYTHING TO GET SHOOK UP ABOUT DESPITE CONCERNS VOICED BY THE ATTORNEY FOR THE TRUST THAT PAYS ASBESTOS CLAIMS AGAINST THE COMPANY DAVID AUSTERN ATTORNEY FOR THE MANVILLE PERSONAL INJURY SETTLEMENT TRUST HAD WARNED IN A LETTER TO US DISTRICT JUDGE JACK WEINSTEIN THAT PUBLICITY FROM A BRITISH COLUMBIA COURT RULING IN AUGUST COULD RESULT IN A WORLDWIDE RUN ON MANVILLE'S OVERSEAS HOLDINGS HE SAID IN THE LETTER THAT THE TRUST HAS RECEIVED 7000 CLAIMS FROM PERSONS OUTSIDE THE US JUDGE WEINSTEIN IN BROOKLYN NY HAS BEEN OVERSEEING EFFORTS TO RESTRUCTURE THE TRUST BUT A SPOKESWOMAN FOR MANVILLE SAID ONLY 60 CASES HAVE BEEN FILED IN FOREIGN COURTS AGAINST MANVILLE OR ITS FORMER UNITS AND ALL OF THOSE CASES ARE IN CANADA OUR BEST ESTIMATE IS THAT THEY WON'T BE MATERIAL THE SPOKESWOMAN SAID THE CANADIAN COURT REFUSED TO STAY A 130000 JUDGMENT AGAINST JM ASBESTOS INC A FORMER MANVILLE UNIT JM ASBESTOS A CANADIAN COMPANY HAD ASKED THE COURT TO STAY THE JUDGMENT IN RECOGNITION OF A US INJUNCTION AGAINST ASBESTOS CLAIMS AGAINST MANVILLE DENVERBASED MANVILLE SAYS IT HASN'T BEEN A PARTY TO THE JM ASBESTOS CASE WHICH WAS BROUGHT BY A FORMER ASBESTOS WORKER SUFFERING FROM MESOTHELIOMA THAT CANADIAN CASE AND THE LETTER FROM MR AUSTERN HAVE BEEN REPORTED IN RECENT ASBESTOSLITIGATION NEWSLETTERS WHICH HAVE STATED THAT MR AUSTERN WANTED TO AVOID PUBLICITY ABOUT THE FOREIGN RULING BUT MANVILLE SAID IT HAS REPORTED THE CANADIAN LITIGATION SINCE ITS JUNE 1991 10Q FILING WITH THE SECURITIES EXCHANGE COMMISSION AND ISN'T CONCERNED ABOUT ANY FINANCIAL IMPACT FROM THE CANADIAN LITIGATION WE DISAGREE WITH MR AUSTERN'S FACTS ANALYSIS AND CHARACTERIZATION OF THE SITUATION THE MANVILLE SPOKESWOMAN SAID MR AUSTERN AND OTHER OFFICIALS AT THE TRUST WHICH WAS SET UP AS PART OF MANVILLE'S BANKRUPTCY REORGANIZATION PLAN IN 1988 COULDN'T BE REACHED FOR COMMENT WHO'S NEWS GEORGE J TERWILLIGER III ACTING US ATTORNEY GENERAL JOINED THE WASHINGTON OFFICE OF MCGUIRE WOODS BATTLE & BOOTHE AS A PARTNER IN THE LITIGATION DEPARTMENT THE 380ATTORNEY LAW FIRM IS BASED IN RICHMOND VA 9301190015 930119 INTERNATIONAL BRIEF BROTHER INDUSTRIES LTD JAPANESE CONCERN REGISTERS 83 DROP IN PRETAX PROFIT BROTHER INDUSTRIES LTD A JAPANESE MAKER OF SEWING MACHINES SAID ITS CONSOLIDATED PRETAX PROFIT FOR THE FISCAL YEAR ENDED NOV 20 PLUNGED 83 FROM THE PREVIOUS YEAR TO 614 MILLION YEN 49 MILLION SALES FELL 07 TO 22833 BILLION YEN FOR THE CURRENT FISCAL YEAR THE COMPANY SAID IT IS LOOKING TO HOLD SALES AND EARNINGS TO THE LEVEL IT HAD IN THE LATEST REPORTING PERIOD A SPOKESMAN ATTRIBUTED THE SHARP FALL IN CONSOLIDATED EARNINGS TO SLIM PROFITS FROM THE PARENT COMPANY'S SALES OF EQUIPMENT SUCH AS INDUSTRIAL SEWING MACHINES AND MACHINE TOOLS RELATED TO PRIVATE CAPITAL SPENDING IN ADDITION HE CITED A WORSENING OF GLOBAL BUSINESS CONDITIONS ESPECIALLY IN EUROPE THE YEN'S STRENGTH DURING THE LATEST PERIOD ALSO ERODED THE COMPANY'S EXPORT COMPETITIVENESS HE SAID 9301190014 930119 MARKETSCAN THE RIO GRANDE IS MAINSTREAM FOR TODAY'S US PALATES YANQUIS ARE FINDING WIDERANGING USES FOR SALSA AND PICANTE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL MILD MEDIUM OR EXTRASPICY MEXICAN SAUCES ARE HOT SELLERS MORE AND MORE CONSUMERS ARE USING SALSA OR PICANTE THE TWO MEXICAN SAUCES THAT DOMINATE THE CATEGORY NOT JUST AS DIPS BUT TO SPICE UP GRILLED CHICKEN MEATLOAF EGGS BAKED POTATOES EVEN SALADS THE MAINSTREAM PALATE IS CHANGING IN PART BECAUSE THE MAINSTREAM ITSELF IS CHANGING IT'S NO LONGER THE EXCLUSIVE ENCLAVE OF WHITE AMERICAN PROTESTANTS OF WESTERN EUROPEAN DESCENT SAYS ELIZABETH ROZIN A COOKBOOK AUTHOR WHO RECENTLY PUBLISHED A PAPER ON THE ORIGINS OF KETCHUP AND SALSA BEARING THIS OUT SUPERMARKET SALES OF SALSA AND ITS WATERIER VERSION PICANTE TOTALED 4969 MILLION IN THE 52WEEK PERIOD ENDED LAST NOV 29 UP 115 FROM THE PRIOR YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE TOTAL SALSA SALES WERE 3108 MILLION UP 136 IN THE 52 WEEKS WHILE SALES OF PICANTE WERE 186 MILLION UP 82 TASTING A TREND MORE AND MORE COMPANIES ARE GETTING INTO THE MEXICANSAUCE BUSINESS ENCROACHING ON THE MAJOR SALSA BRANDS POTENTIALLY FORMIDABLE OPPOSITION COMES FROM HJ HEINZ CO THE NO 1 KETCHUP MAKER SPURRED BY SALSA'S SURGING POPULARITY NOT TO MENTION THAT SALES OF SALSA AND PICANTE LAST YEAR OUTPACED KETCHUP FOR THE FIRST TIME HEINZ TOOK TO ITS TEST KITCHENS LAST YEAR TO PRODUCE A SALSA WHICH RECENTLY REACHED FOODCLUB SHELVES ANOTHER SALSA UPSTART ENJOYING RAPID GROWTH SINCE HITTING THE NATIONAL MARKET IN LATE 1991 IS NEWMAN'S OWN PRODUCED BY ACTOR PAUL NEWMAN'S COMPANY NEWMAN'S OWN INC WHICH MAKES A POPULAR SPAGHETTI SAUCE AND SALAD DRESSINGS THE SALSA MARKET'S FRAGMENTATION IS OCCURRING REGIONALLY AS LOCAL PRODUCERS TAKE ON BIG FOOD COMPANIES FOR SUPERMARKET SHELF SPACE RESTAURATEURS WHO SERVE SALSA ARE GETTING INTO THE ACT BY BOTTLING AND SELLING THEIR SALSA FORMULAS CONSUMERS ARE LOOKING FOR A SALSA THAT'S UNIQUE AND FRESH SAYS BOB FELDMAN COOWNER OF HOTLICKS A SMALL CHAIN OF RESTAURANTS IN PITTSBURGH THAT SELLS ITS SALSA IN LOCAL SUPERMARKETS OTHER FASTGROWING SALSAS INCLUDE PEPSICO INC'S FRITOLAY BRAND AND CHICHI'S WHICH CAPITALIZES ON THE POPULAR MEXICAN RESTAURANT CHAIN OF THE SAME NAME GEORGE A HORMEL & CO LICENSES THE CHICHI'S NAME FOR ITS SALSA IT WILL BE CHALLENGING FOR THE TOP GUYS TO HOLD THEIR MARGINS IN WHAT'S GOING TO BECOME A MORE COMPETITIVE CATEGORY SAYS ANALYST JOHN M MCMILLIN OF PRUDENTIAL SECURITIES RESEARCH THE COMPETITION IS PROMPTING ESTABLISHED BRANDS TO SPEND MORE ON ADVERTISING AND COME UP WITH NEW PRODUCTS ORTEGA WHICH IS MADE BY RJR NABISCO INC RECENTLY REDESIGNED ITS ENTIRE MEXICAN SAUCE LINE PACE INC SAYS IT INTENDS TO REMAIN THE MEXICANSAUCE INDUSTRY'S TOP SPENDER IN TERMS OF ADVERTISING DOLLARS ALL WE MAKE IS MEXICAN SAUCES SAYS PACE SPOKESMAN MATT MOHR ALL OUR EGGS ARE IN ONE BASKET WE HAVE TO WATCH THE HELL OUT OF THAT BASKET WE TAKE ANY NEW ENTRY VERY VERY SERIOUSLY IN THE COMBINED SALSA AND PICANTE CATEGORY THE BIGGEST LOSERS WERE ORTEGA WHOSE SALES DROPPED 11 IN THE 52WEEK PERIOD AND LA VICTORIA WITH A 19 DECLINE THE BIGGEST GROWTH WAS REGISTERED BY NEWMAN'S OWN AND CHICHI'S MEANWHILE PACE FRITOLAY AND CHICHI'S HAD DOUBLEDIGIT SALSA GROWTH WHILE OLD EL PASO A PET INC PRODUCT WAS FLAT AND ORTEGA AND LA VICTORIA SAW DECLINING SALES LA VICTORIA A PRODUCT OF LA VICTORIA FOODS INC HAS A STRONG CALIFORNIA PRESENCE ORTEGA FEELING THE PINCH RECENTLY LAUNCHED NEW TV ADS FOR ITS SALSA WITH VETERAN ACTOR JACK PALANCE NARRATING CHUNKY IS NOW CHUNKIER THICK JUST GOT THICKER THE AD CAMPAIGN MAY HAVE CONTRIBUTED TO A 322 SURGE IN ORTEGA SALSA AND PICANTE SALES IN THE 12 WEEKS ENDED NOV 29 FRITOLAY COUNTING ON CONTINUED DOUBLEDIGIT SALSA SALES GROWTH IS ABOUT TO ROLL OUT PREMIUM TOSTITOS BRAND SALSA AND PICANTE NAMED AFTER THE COMPANY'S POPULAR TOSTITOS RESTAURANTSTYLE CHIPS FRITOLAY SALSA WHICH IS SOLD WITH FRITOLAY CHIPS RATHER THAN IN SPECIALTYFOOD SECTIONS CONSISTENTLY RANKS IN THE TOP FOUR SALSAS EVEN THOUGH IT'S NOT ADVERTISED WE'RE THERE WHERE THEY'RE BUYING THE CHIPS SAYS BRAND MANAGER STEVE LIGUORI TOSTITOS SAUCES WILL BE SHELVED WITH OTHER MEXICAN FOODS NEWMAN'S OWN A CLOSELY HELD COMPANY WHOSE AFTERTAX PROFITS GO TO CHARITY IS STARTING TO SELL ITS SALSA OVERSEAS SAYS URSULA HOTCHNER SENIOR VICE PRESIDENT NEWMAN'S OWN SALSA IS ALREADY SOLD IN ENGLAND ICELAND PARAGUAY ISRAEL AND TAIWAN AND WILL SOON BE SOLD IN AUSTRALIA NEW ZEALAND FRANCE AND OTHER EUROPEAN COUNTRIES A SPOKESPERSON SAYS AT HOME THE SALSA CRAZE HAS PROMPTED AN OUTPOURING OF CHIC ALTERNATIVES MANY OF WHICH ARE A FAR CRY FROM TRADITIONAL MEXICAN SAUCES WE'RE TALKING NOW ABOUT FRUIT SALSAS WHAT WE WOULD ORDINARILY CALL CHUTNEY OR RELISH AND ARE CLOSER TO KETCHUP THAN SALSA SAYS MS ROZIN THE COOKBOOK AUTHOR FOR EXAMPLE IN MINNEAPOLIS THE GOOD EARTH RESTAURANTS A LOCAL CHAIN CATERING TO THE GRANOLA CROWD SERVE PINEAPPLE CRANBERRY AND TOMATO SALSAS WITH MAIN DISHES FASTFOOD CHAINS THAT TRADITIONALLY OFFER HAMBURGERS AND FRIES ARE BEGINNING TO TAKE ADVANTAGE OF THE GROWING APPETITE FOR SPICY FOODS PEPSICO'S TACO BELL OBVIOUSLY DOMINATES THE MEXICAN FASTFOOD NICHE BUT MCDONALD'S CORP OUTLETS NOW OFFER FAJITAS AND WENDY'S INTERNATIONAL INC IS CONSIDERING ROLLING OUT A SALSATOPPED CHICKEN SANDWICH OR HAMBURGER WENDY'S IS ALSO TOYING WITH THE IDEA OF INSTALLING SALSA BARS VATS OF SALSAS THAT CUSTOMERS WOULD SPOON ONTO SANDWICHES BAKED POTATOES AND FRIES WE'RE LOOKING FOR A MILD SALSA WITH UNIVERSAL APPEAL SAYS A SPOKESMAN ADDING YOU WOULDN'T SEE HOT SALSAS ON OUR MENU IN FACT MASSPRODUCED SALSAS ARE ASTONISHINGLY SIMILAR VARYING VERY SLIGHTLY IN HEAT AND CONSISTENCY TO GET SOMETHING TO BE SHELFSTABLE YOU HAVE TO COOK IT TO 200 DEGREES THAT'S WHY ALL JARRED SALSAS TASTE ALIKE SAYS MR FELDMAN OF THE HOTLICKS CHAIN HE ADMITS THAT HOTLICKS' SHELFSTABLE SALSA WHICH IS FOUND ON SUPERMARKET SHELVES ISN'T AS TASTY AS THE FRESH SALSA HE SELLS IN SUPERMARKET DELIS THERE'S NO COMPARISON HE SAYS SOME CONSUMERS AGREE ONE BEING IRA BRODSKY A MEXICANBORN HIGHSCHOOL SPANISH TEACHER IN OMAHA NEB MR BRODSKY SAYS GENUINE SALSA BEARS LITTLE RESEMBLANCE TO MANUFACTURED VARIETIES WHICH ARE TYPICALLY HEAVY ON CHOPPED STEWED TOMATOES SWIMMING IN TOMATO SAUCE BY CONTRAST THE REAL THING LO VERDADERO IS LIGHT ON TOMATO SAUCE AND HEAVY ON CILANTRO AND JALAPENO PEPPERS MR BRODSKY SERVED HIS STUDENTS CHIPS AND SALSA DURING EXAMENES FINALES LAST MONTH WHILE THE TEENAGERS TOOK THEIR TESTS MR BRODSKY CONDUCTED A TASTE TEST OF HIS OWN HE SERVED A HOMEMADE SALSA AND ONE THAT CAME IN A JAR THE STUDENTS OVERWHELMINGLY PREFERRED THE HOMEMADE SAUCE THE SALSA YOU BUY IN STORES HAS A CANNED TASTE MR BRODSKY SAYS IT DOESN'T HAVE A FRESH TASTE LIKE THE ONE YOU'D MAKE AT HOME SALES HAVE SOARED BUT SO HAS COMPETITION AMONG SALSA AND PICANTE BRANDS INCLUDING NEWMAN'S OWN SALSA CHICHI'S AND PACE SEE RELATED ARTICLE MEXICO'S CORONA BREW REGAINS THE CACHET IT LOST IN THE LATE '80S WSJ JAN 19 1993 9301190013 930119 FUTURE NOW ACQUISITION CINCINNATI FUTURE NOW INC SAID IT COMPLETED THE ACQUISITION OF SUBSTANTIALLY ALL OF THE ASSETS OF DIRECT COMPUTER CORP FOR 54 MILLION INCLUDING 1 MILLION IN CASH AND THE REMAINDER IN ASSUMED DEBT FUTURE NOW SAID DIRECT A COMPUTER RESELLER WITH OPERATIONS IN DALLAS HOUSTON AND SEATTLE HAD SALES OF 365 MILLION FOR THE NINE MONTHS ENDED SEPT 30 FOR THE OPERATIONS ACQUIRED FUTURE NOW WHICH PROVIDES COMPUTER SUPPORT SERVICES HAD SALES OF 210 MILLION DURING THE SAME PERIOD 9301190012 930119 BETHLEHEM STEEL REORGANIZATION BETHLEHEM PA BETHLEHEM STEEL CORP AS EXPECTED ANNOUNCED A REORGANIZATION THAT WILL DIVIDE ITS FLATROLLED STEEL MILLS IN BURNS HARBOR IND AND SPARROWS POINT MD INTO INDEPENDENT BUSINESS UNITS RESPONSIBLE FOR THEIR OWN MARKETING OPERATIONS AND FINANCIAL PERFORMANCE THE COMPANY SAID IT NAMED JOSEPH F EMIG 55 YEARS OLD PRESIDENT OF THE NEW BURNS HARBOR DIVISION WHICH PRODUCES ABOUT 45 MILLION TONS A YEAR OF SHEET STEEL AND PLATE PRODUCTS MAINLY FOR AUTOMOTIVE AND MACHINERY CUSTOMERS HE HAD FORMERLY RUN THE MILL AS VICE PRESIDENT AND GENERAL MANAGER DUANE R DUNHAM 51 FORMERLY VICE PRESIDENT OF MARKETING AT THE PARENT COMPANY WAS NAMED PRESIDENT OF THE SPARROWS POINT DIVISION WHICH SELLS ABOUT THREE MILLION TONS OF SHEET AND PLATE PRODUCTS A YEAR PRIMARILY TO CONSTRUCTION AND CONTAINER MARKETS AND SERVICE CENTERS 9301190011 930119 COMMONWEALTH EDISON GETS RATINGS ON DEBT LOWERED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED THE CREDIT RATING OF 84 MILLION OF COMMONWEALTH EDISON CO'S LONGTERM SECURITIES FOLLOWING AN ILLINOIS COMMERCE COMMISSION ORDER FORCING THE CHICAGO UTILITY TO LOWER ITS RATES AND REFUND 600 MILLION TO CUSTOMERS THE RATING AGENCY'S ACTION LARGELY EXPECTED COMPLETES A REVIEW BEGUN JAN 5 COMMONWEALTH'S CURRENT TROUBLES STEM FROM A SIXYEAR BATTLE TO INCREASE RATES TO PAY FOR THREE NEW NUCLEAR POWER GENERATING UNITS THE COMMERCE COMMISSION RULED THAT THE THIRD NUCLEAR UNIT WAS UNNECESSARY IN ADDITION TO THE CUSTOMER REFUND THE COMMISSION ORDERED COMMONWEALTH EDISON TO REDUCE CURRENT RATES BY 331 MILLION A YEAR RETROACTIVE TO MARCH 1991 MOODY'S SAID IT DOWNGRADED COMMONWEALTH EDISON'S FIRST MORTGAGE BONDS AND SECURED POLLUTION CONTROL REVENUE BONDS TO BAA2 FROM BAA1 MEDIUMTERM NOTES DEBENTURES AND UNSECURED POLLUTION CONTROL REVENUE BONDS WERE LOWERED TO BAA3 FROM BAA2 THE PREFERRED STOCK RATING WAS CHANGED TO BAA3 FROM BAA2 MOODY'S CONFIRMED COMMONWEALTH EDISON'S PREFERENCE STOCK AT BAA3 SAYING THE COMPANY'S CASH FLOW AND RETAINED EARNINGS WILL BE SUFFICIENT TO MAKE TIMELY PREFERENCE STOCK DIVIDEND PAYMENTS THE COMPANY'S PRIME2 SHORTTERM DEBT RATING FOR COMMERCIAL PAPER WASN'T UNDER REVIEW A COMMONWEALTH SPOKESMAN SAID THE DOWNGRADING COMES AS NO SURPRISE THE COMPANY IS APPEALING THE COMMISSION'S RULING IN THE ILLINOIS SUPREME COURT THE COURT RECENTLY GRANTED THE UTILITY AN INTERIM STAY OF THE COMMISSION'S RATE AND REFUND ORDERS AND IS EXPECTED TO RULE SOON ON WHETHER IT WILL TAKE UP THE APPEAL 9301190010 930119 DIVIDEND NEWS PALL CORP PALL CORP INCREASED ITS DIVIDEND 185 ON POSTSPLIT SHARES TO EIGHT CENTS A SHARE PAYABLE FEB 12 TO STOCK OF RECORD JAN 29 THE PRIOR DIVIDEND HAD BEEN NINE CENTS A SHARE BEFORE THE COMPANY'S 4FOR3 STOCK SPLIT DEC 28 THE EAST HILLS NY MAKER OF FILTERS AND OTHER FLUID CLARIFICATION PRODUCTS FOR VARIOUS INDUSTRIES CURRENTLY HAS ABOUT 1158 MILLION SHARES OUTSTANDING 9301190009 930119 ECONOMY TEMPORARY WORKERS WERE IN BIG DEMAND WITH FIRMS IN 1992 CAUTIOUS COMPANIES GAVE JOBS TO PARTTIME EMPLOYEES WHILE AWAITING AN UPTURN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LABOR MARKET HAS BEEN LOOKING SLIGHTLY BETTER SINCE THE DOG DAYS OF SUMMER BUT FOR MANY AMERICANS THE JOBS THEY'RE LANDING MAY NOT BE PERMANENT DURING THE FIRST 11 MONTHS OF LAST YEAR THERE WERE 222000 NEW JOBS AT TEMPORARY EMPLOYMENT AGENCIES WHICH PLACE WORKERS AT FIRMS NEEDING EXTRA HELP FOR A LIMITED TIME THAT'S SIGNIFICANT CONSIDERING THAT AFTER LOST JOBS ARE ACCOUNTED FOR THERE WERE ONLY 318000 PRIVATESECTOR JOBS ADDED IN THAT SAME PERIOD THE BREAKDOWN FOR TEMPORARY HELP IS AVAILABLE ONLY THROUGH NOVEMBER BUT INDICATIONS ARE THAT THE TREND CONTINUED IN DECEMBER THE PERSONNEL SUPPLY COMPONENT HAS SHOWN PARTICULAR STRENGTH IN THE LAST THREE MONTHS WILLIAM BARRON DEPUTY COMMISSIONER OF LABOR STATISTICS SAID IN DECEMBER'S EMPLOYMENT REPORT ANALYSTS SAY THAT SUCH A LARGE NUMBER OF TEMPORARY JOBS WOULDN'T BE UNSETTLING IN A NORMAL RECOVERY WHERE MORE THAN 200000 NEW JOBS ARE CREATED EACH MONTH BUT THIS PICKUP SEEMS TO BE WHAT SOME ECONOMISTS CALL A PRODUCTIVITY RECOVERY IN WHICH COMPANIES BRING ON FEWER NEW WORKERS THAN IN THE PAST AS THEY EXPAND OUTPUT BESIDES GIVEN THE HALTING NATURE OF THE REBOUND PRODUCTION HASN'T GROWN VERY MUCH UNTIL RECENTLY SINCE JOB GROWTH IS SO SLUGGISH THE STRENGTH IN TEMPORARY HELP SERVICES SUGGESTS THAT BUSINESSES AREN'T READY TO COMMIT TO PERMANENT HIRES EVEN AS THE ECONOMY GAINS MOMENTUM UNCERTAINTIES ABOUT THE CLINTON ECONOMIC PACKAGE COULD EXTEND THIS MOOD OF HESITANCY SO MANY TIMES A COMPANY CALLS TO SAY THEY ARE 95 CERTAIN THAT THEY HAVE A PERMANENT POSITION AVAILABLE BUT THEY WOULD LIKE TO HIRE SOMEONE ON A TEMPORARY BASIS FIRST SAYS MARY JO SHACKELFORD BALTIMORE MANAGER OF MANPOWER INC AN EMPLOYMENT SERVICES FIRM BUSINESSES ARE JUST PLAYING IT CAREFULLY MS SHACKELFORD SAYS THERE HAS BEEN A BIG INCREASE IN THE NUMBER OF TEMPORARY WORKER REQUESTS AMONG LIGHT INDUSTRIAL AND ASSEMBLY PLANTS REFLECTING THE PARTICULAR CAUTIOUSNESS OF THE MANUFACTURING INDUSTRY THERE HAS ALSO BEEN AN INCREASE IN THE NUMBER OF REQUESTS FOR WORDPROCESSING EMPLOYEES WORKERS FROM TEMPORARY HELP FIRMS ARE BEARING THE BRUNT OF THE INCREASES IN ECONOMIC ACTIVITY SAYS LACY HUNT CHIEF ECONOMIST FOR CARROLL MCENTEE & MCGINLEY INC IN NEW YORK THERE'S CERTAINLY AN UPSIDE TO THAT TREND PEOPLE WHO OTHERWISE WOULDN'T HAVE A JOB ARE FINDING ONE THROUGH TEMPORARY HELP WORK WHICH ADDS TO THEIR INCOMES AND CONTRIBUTES TO THE RECENT SURGE IN CONSUMER SPENDING BUT THERE'S A DOWNSIDE TOO THESE NEW WORKERS DON'T HAVE THE SECURITY OF A PERMANENT JOB OR THE HEALTH AND RETIREMENT BENEFITS THAT GO WITH IT AND THAT COULD COOL THEIR WILLINGNESS TO SPEND VIEWED FROM THE AMERICAN ECONOMY HIRING THROUGH TEMP AGENCIES IS NOT SUCH A BAD THING BUT VIEWED FROM THE AMERICAN CONSUMER WHO IS LOOKING FOR STABILITY IT'S NOT SO GREAT SAYS ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST CO IN CHICAGO ECONOMISTS SAY THE REASON BUSINESSES ARE GETTING THEIR WORKERS FROM TEMPORARY AGENCIES IS BECAUSE THEY'RE STILL CAUTIOUS ABOUT THE STRENGTH OF THE ECONOMY THE RECOVERY HAS NOT BEEN UNIFORM ACROSS THE COUNTRY WHILE THE SOUTHEAST AND MIDWEST ARE SHOWING MARKED IMPROVEMENT THE NORTHEAST AND THE WEST IN PARTICULAR ARE STILL SUFFERING TEMPORARY WORKERS DON'T BRING WITH THEM THE SAME BENEFIT COSTS SUCH AS HEALTH INSURANCE ANALYSTS SEE ANOTHER FACTOR IN THE HESITANCY TO HIRE PERMANENT WORKERS BUSINESSES WANT TO WAIT AND SEE WHAT PRESIDENTELECT CLINTON WILL DO FOR THE ECONOMY EMPLOYERS WANT TO KNOW WHAT'S GOING TO HAPPEN WITH HEALTH INSURANCE TAXES AND OTHER POLICIES IN THE NEW ADMINISTRATION SAYS JANET NORWOOD A FORMER BUREAU OF LABOR STATISTICS COMMISSIONER WHO IS NOW WITH THE URBAN INSTITUTE 9301190007 930119 EXBCCI OFFICER SAYS ALTMAN ATTENDED MEETINGS THAT MADE BANK'S ROLE CLEAR BY PETER TRUELL AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A FORMER SENIOR BCCI OFFICIAL TESTIFIED THAT WASHINGTON LAWYER ROBERT ALTMAN WAS PRESENT ON SEVERAL OCCASIONS WHEN BCCI'S TOP OFFICERS MADE IT CLEAR THAT THEIR BANK CONTROLLED FIRST AMERICAN BANKSHARES INC AND NATIONAL BANK OF GEORGIA KHALID SHARIH A 47YEAROLD FORMER SPECIAL ASSISTANT TO BCCI FOUNDER AGHA HASAN ABEDI TESTIFIED BEFORE A NEW YORK STATE JUDGE ABOUT SPECIFIC MEETINGS THAT MR ALTMAN HAD ATTENDED WHERE MR ABEDI AND OTHERS REFERRED TO THE BCCI FAMILY AS INCLUDING THESE US FINANCIAL INSTITUTIONS MR SHARIH SAID HE SAW MR ALTMAN AT TWO OF BCCI'S ANNUAL MANAGEMENT MEETINGS IN THE MID1980S REPLYING TO QUESTIONS FROM RICHARD PREISS ASSISTANT DISTRICT ATTORNEY MR SHARIH ALSO DESCRIBED HOW OFFICIALS FROM BCCI HOLDINGS LUXEMBOURG SA WERE INVOLVED IN SETTING UP FIRST AMERICAN'S NEW YORK OPERATION WHAT MR ALTMAN KNEW OR DIDN'T KNOW ABOUT BANK OF CREDIT & COMMERCE INTERNATIONAL'S SECRET AND ILLEGAL CONTROL OF FIRST AMERICAN AND OTHER US FINANCIAL INSTITUTIONS WILL BE A CRITICAL QUESTION IN HIS TRIAL SET TO BEGIN IN MIDFEBRUARY IN NEW YORK STATE COURT MR ALTMAN IS CHARGED WITH BANK FRAUD AND CONSPIRACY MR ALTMAN HAS DENIED THE CHARGES AND MAINTAINS THAT HE DIDN'T KNOW ABOUT BCCI'S SECRET OWNERSHIP AND CONTROL THE INTERNATIONAL BANK WAS SEIZED BY BANK REGULATORS ON JULY 5 1991 AMID CHARGES OF MASSIVE FRAUD AND OTHER ILLEGAL ACTIVITIES AND IS BEING LIQUIDATED MR ALTMAN AND HIS PARTNER CLARK CLIFFORD WERE LEGAL COUNSEL FOR BCCI AND FIRST AMERICAN AND SERVED AS TOP OFFICERS OF FIRST AMERICAN MR SHARIH HAS BEEN BATTLING LUNG CANCER FOR SEVERAL YEARS MINDFUL OF HIS DECLINING HEALTH NEW YORK PROSECUTORS WANTED HIM TO TESTIFY ON VIDEOTAPE BEFORE MR ALTMAN'S TRIAL DRESSED IN A CHARCOALGRAY DOUBLEBREASTED SUIT MR ALTMAN APPEARED RELAXED AND CLOSELY INVOLVED IN HIS COUNSEL'S EXAMINATION OF THE WITNESS IN HIS CROSSEXAMINATION GUSTAVE NEWMAN MR ALTMAN'S LAWYER SOUGHT TO SHOW THAT MR SHARIH HAD GIVEN DIFFERENT VERSIONS OF THE SAME EVENTS IN PREVIOUS TESTIMONY TO A NEW YORK STATE GRAND JURY AND THE US FEDERAL RESERVE MR NEWMAN ALSO MADE FREQUENT REFERENCES TO DRAFTS OF A BOOK THAT MR SHARIH HAD WRITTEN AND PROVIDED TO THE MANHATTAN DISTRICT ATTORNEY'S OFFICE TO SHOW THAT MR SHARIH HAD GIVEN DIFFERENT OR INCORRECT VERSIONS OF THE SAME EVENTS MR NEWMAN ALSO SOUGHT TO COUNTER MR SHARIH'S TESTIMONY BY DRAWING OUT INSTANCES WHERE MR ALTMAN WAS CLEARLY MAKING MANAGEMENT DECISIONS AT FIRST AMERICAN WITHOUT BCCI'S INFLUENCE OR CONTROL MR SHARIH WHO SAID HE FIRST MET MR ALTMAN IN EITHER 1981 OR 1982 ALSO DESCRIBED A MEETING IN EARLY 1986 AT THE HELMSLEY PALACE HOTEL IN NEW YORK IN WHICH THE WASHINGTON LAWYER QUARRELED WITH BCCI'S CHIEF EXECUTIVE SWALEH NAQVI ABOUT THE TRANSFER OF SHARES OF THE HOLDING COMPANY OF FIRST AMERICAN MR NAQVI WAS REQUESTING WE WANTED SHARE TRANSFER DEALS IN OUR CUSTODY MR SHARIH SAID BUT MR ALTMAN TOLD MR NAQVI THIS ISN'T IN YOUR INTEREST AT THIS TIME MR SHARIH SAID MR ALTMAN AND MR NAQVI WERE ARGUING OVER WHO SHOULD HAVE CUSTODY OF FIRST AMERICAN'S SHARES BCCI WAS THEN IN FINANCIAL DIFFICULTY AND WAS ALLEGEDLY SEEKING TO SELL FIRST AMERICAN TO BOLSTER ITS OWN FINANCIAL CONDITION AS MR ABEDI'S NEW YORKBASED SPECIAL ASSISTANT MR SHARIH WOULD DELIVER CASH TO ARAB POTENTATES ON BEHALF OF BCCI MR SHARIH DESCRIBED TWO OCCASIONS WHEN HE SAID HE DELIVERED 200000 IN CASH TO A MEMBER OF THE RULING FAMILY OF DUBAI WHO WAS STAYING IN NEW YORK 9301190006 930119 LETTERS TO THE EDITOR HONOR DUTY INTEGRITY YOU CALL THAT SILLY I WAS PLEASED TO SEE YOUR DEC 14 ARTICLE BUSINESS BOOKS EMPHASIZE THE SPIRITUAL I AGREE THAT THE CONDUCT OF BUSINESS IS BEING QUESTIONED IN THE '90S HOWEVER I AM DISTURBED BY THE IMPLICATION THAT A BUSINESS BOOK BASED ON THE BOY SCOUT OATH IS SOFT AND SILLY SCOUTING HAS TAUGHT PRINCIPLES SUCH AS HONOR DUTY INTEGRITY AND RESPONSIBILITY TO MORE THAN 83 MILLION YOUNG MEN THE GIRL SCOUTS HAVE ACHIEVED EQUALLY IMPRESSIVE RESULTS WITH THEIR PROGRAM THE MESSAGES WE HEAR FROM LEADERS ECHO OUR BELIEF THAT YOU CAN MAKE A PROFIT WITHOUT SACRIFICING YOUR PRINCIPLES LONGTERM SUCCESS IS IMPPOSSIBLE WITHOUT TRUST FROM CUSTOMERS EMPLOYEES AND COMMUNITIES TO SAY THAT WARNER BOOKS' TITLE BASED ON THE BOY SCOUT OATH HAS NOT LIVED UP TO THE PUBLISHER'S EXPECTATION IS ONE THING BUT TO IMPLY THAT THE PRINCIPLES ON WHICH THE BOOK IS BASED ARE NOT IMPORTANT FOR SUCCESS IN BUSINESS AND LIFE IS A MISTAKE IT HAS BEEN MY PLEASURE TO READ ON MY HONOR I WILL AND PRESENT IT AS GIFTS TO FRIENDS IN BUSINESS AND I HAVE ALSO HAD THE PLEASURE DURING THE PAST 20 YEARS OF WORKING FOR NOTFORPROFIT ORGANIZATIONS TO WORK WITH SOME OF THE PEOPLE MENTIONED AS LEADERS IN INDUSTRY AND INDEED LEADERS OF AMERICA I THINK IT'S UNFORTUNATE THAT YOU MISINTERPRET THE VALUE NOT ONLY OF THE BOOK BUT OF WHAT IT SAYS NOW MORE THAN EVER BASIC VALUES AND PRINCIPLES THAT ARE EXPLAINED AND USED AS EXAMPLES IN BUSINESS WITHIN THE BINDING OF THAT VOLUME SHOULD NOT BE CONSIDERED UNIMPORTANT BUT RATHER REVERED AS WHAT HAS MADE THIS COUNTRY GREAT AND WHAT WILL CONTINUE TO DO SO 9301190005 930119 BUSINESS BRIEF WORLD COLOR PRESS AN AFFILIATE OF KKR AGREES TO BUY ALDEN FOR 110 MILLION NEW YORK KOHLBERG KRAVIS ROBERTS & CO AFFILIATE WORLD COLOR PRESS INC DEFINITIVELY AGREED TO ACQUIRE SPECIALTY CATALOG PRINTER ALDEN PRESS CO FOR 15 A SHARE OR ABOUT 110 MILLION ALDEN WENT PUBLIC LESS THAN SIX MONTHS AGO THROUGH A 9ASHARE INITIAL OFFERING IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S SHARES JUMPED 2 OR 15 TO CLOSE AT 1525 VOLUME OF THE NORMALLY THINLY TRADED STOCK SOARED TO 14 MILLION SHARES FROM A NORMAL VOLUME OF AROUND 30000 SHARES WORLD COLOR PRESS WHICH PRINTS CONSUMER MAGAZINES INCLUDING WOMEN'S DAY US NEWS & WORLD REPORT AND MOTOR TREND IS OWNED BY A LIMITED PARTNERSHIP LED BY KKR 1992 REVENUES FOR IT AND BRADLEY PRINTING ALSO HELD BY THE SAME PARTNERSHIP TOGETHER TOTALED ABOUT 650 MILLION A SPOKESWOMAN SAID WORLD COLOR ALSO PRINTS CATALOGS DIRECTORIES AND OTHER MATERIALS AND LAST YEAR DECIDED TO EXPAND ITS CATALOG BUSINESS ALDEN PRESS BASED IN THE CHICAGO SUBURB OF ELK GROVE VILLAGE WENT PRIVATE IN 1986 THROUGH A MANAGEMENTLED LEVERAGED BUYOUT THAT DIDN'T HAVE ANY PARTICIPATION BY KKR THE PRINTER'S LATEST NINEMONTH EARNINGS WERE 26 MILLION ON REVENUE OF 1265 MILLION ALDEN WENT PUBLIC IN AUGUST THE OWNERS HAD INITIALLY HOPED TO SELL 32 MILLION SHARES AT A RANGE OF 1150 TO 1350 APIECE BUTREFLECTING THE THENSOFT INITIAL PUBLIC OFFERING MARKETTHE OFFERING WAS FIRST DELAYED AND THEN TRIMMED BACK TO 25 MILLION SHARES AT 9 APIECE WORLD COLOR SAID CERTAIN STOCKHOLDERS AT ALDEN HAVE ALREADY REACHED STOCK PURCHASE AGREEMENTS CALLING FOR THEM TO SELL THEIR APPROXIMATELY 645 HOLDING AT THE PROPOSED PRICE 9301190004 930119 REVIEW & OUTLOOK EDITORIAL GREENPEACE CALLS A JUDGE THE INCREDIBLE SAGA CONTINUES OF THE VON ROLL INCINERATOR WHICH BECAME A TEST CASE OF CLINTON ENVIRONMENTAL POLICY AFTER VICE PRESIDENTELECT AL GORE SUDDENLY INTRUDED HIS OFFICE INTO THE LONGRUNNING DISPUTE BY TELEPHONE FROM THE CAYMAN ISLANDS ON FRIDAY FEDERAL JUDGE ANN ALDRICH AT GREENPEACE'S BEHEST TEMPORARILY BLOCKED A TEST BURN LAST WEEKEND AT THE HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO LATER THIS WEEK IN CLEVELAND SHE'LL DECIDE WHETHER TO ISSUE A LONGER INJUNCTION AND CONVENE A TRIAL JUDGE ALDRICH WILL HAVE A LOT TO THINK ABOUT THE PLANT HAS BEEN ENDLESSLY REVIEWED AND LITIGATED OVER WITH EVERYBODY FROM THE OHIO SUPREME COURT TO THE EXPERT SCIENTISTS AT THE FEDERAL AND OHIO EPAS SIGNING OFF VON ROLL'S RECORD IN THESE PROCEEDINGS IS 21 WINS ZERO LOSSES TWO WEEKS AGO VALDAS ADAMKUS OF EPA'S CHICAGO OFFICE APPROVED THE TESTBURN PLAN MR ADAMKUS HAS A REPUTATION AS A STIFFNECKED NONONSENSE ENVIRONMENTALIST IT'S WORTH NOTING THAT HE WAS THE LAST REGIONAL ADMINISTRATOR APPOINTED BEFORE THE JOB WENT POLITICAL AND HE SIGNED OFF DESPITE HOSTILE NOISES FROM AL GORE THE INCOMING ENVIRONMENTAL BUMPER CZAR NOW COMES THIS LAWSUIT BY GREENPEACE A HANDFUL OF LOCAL NIMBYS AND THE ACTIVISTLAWYERS OF THE GOVERNMENT ACCOUNTABILITY PROJECT INCINERATION IS PROBABLY THE BEST WAY TO DISPOSE OF MANY NOXIOUS PRODUCTS USED BY INDUSTRY BUT IT DOESN'T FIT INTO GREENPEACE'S WELTANSCHAUUNG THAT'S WHY THE GROUP IS ANXIOUS TO FORESTALL AN EPASUPERVISED DEMONSTRATION OF VON ROLL'S CUTTINGEDGE TECHNOLOGY HAVING BAMBOOZLED MR GORE A FEW WEEKS AGO INTO PUTTING THE NEW ADMINISTRATION ON THE RECORD AGAINST THE PLANT GREENPEACE NOW WANTS THE QUESTION KICKED BACK TO A POLITICAL VENUE THAT WAY AGITPROP AND FEARMONGERING CAN DRIVE OUT DUE PROCESS AND RESPECT FOR PROPERTY RIGHTS HENCE THIS SENTENCE IN A LETTER LAST WEEK TO VON ROLL'S LAWYERS SHOULD YOUR CLIENTS BE WILLING TO DELAY THE TEST BURN AT WTI UNTIL AFTER THE NEW EPA ADMINISTRATION HAS HAD THE OPPORTUNITY TO REVIEW THE HEALTH RISK AND PERMIT ISSUES OUR CLIENTS MIGHT CONSIDER POSTPONING THEIR LEGAL CHALLENGE IN ITS PLEADINGS GREENPEACE HAS LEANED HEAVILY ON THE SCAREWORD DIOXIN DIOXIN A CONTAMINANT IN AGENT ORANGE AND A BYPRODUCT OF EVERYTHING FROM DIESEL MOTORS TO WOOD STOVES CAUSES CANCER WHEN STUFFED INTO GUINEA PIGS THE DANGER TO HUMANS HAS BEEN BATTED BACK AND FORTH BUT SCIENTISTS NOW BELIEVE THAT LOW LEVELS OF EXPOSURE ARE ESSENTIALLY HARMLESS IN ANY CASE VON ROLL'S PERMIT DOESN'T ALLOW THE BURNING OF DIOXIN AND THE RISK THAT DIOXIN WILL BE EMITTED AS A COMBUSTION BYPRODUCT IS VASTLY OVERBLOWN OHIO'S EPA HAS JUST COME OUT WITH A STUDY OF TWO OTHER HAZARDOUSWASTE INCINERATORS IN OHIO IT FOUND NO SIGNIFICANT PUBLIC HEALTH CONCERNS FROM DIOXIN INHALATION THE FORM OF EXPOSURE THAT EAST LIVERPUDLIANS WOULD WORRY ABOUT ALL THIS MUST SOUND FAMILIAR TO BILL CLINTON AS GOVERNOR HE TOOK HEAT FOR HELPING A HAZARDOUSWASTE INCINERATION COMPANY ENSCO SET UP IN ARKANSAS THOUGH THE PLANT'S NEIGHBORS CALMED DOWN AFTER STUDIES SHOWED ZERO RISK ARKANSAS'S ECOCRAZIES HAVE PUMMELED HIM EVER SINCE YET MR CLINTON MUST CONSIDER INCINERATION A USEFUL INDUSTRY THE PLANT'S OWNER MELVYN BELL IS A FRIEND AND MR CLINTON EVEN PINCHED AN ENSCO DIRECTOR TO RUN THE GOVERNOR'S OFFICE WHILE HE CAMPAIGNED FOR THE PRESIDENCY VON ROLL HAS INVESTED 160 MILLION AND SPENT 13 YEARS COMPLYING WITH EVERY REGULATION IN SIGHT ACROSS THE OHIO RIVER IN WEST VIRGINIA US JUDGE FREDERICK STAMP HAS BEEN WADING THROUGH THE SCIENCE AND LEGALITIES FOR MONTHS IN RESPONSE TO A LAWSUIT BY THE STATE'S ATTORNEY GENERAL IN NOVEMBER HE GAVE VON ROLL A GREEN LIGHT FOR THE TEST BURN ON FRIDAY HE DECLINED TO PREEMPT GREENPEACE'S OHIO SUIT BUT POINTEDLY NOTED THAT THE ISSUES ARE ESSENTIALLY SIMILAR THUS TWO FEDERAL COURTS COULD FIND THEMSELVES RACING TOWARD DUELING VERDICTS JUDGE ALDRICH MUST WONDER WHETHER ANY PURPOSE WOULD BE SERVED BY A COMMAND PERFORMANCE OF THIS COSTLY RIGADOON BEFORE YET ANOTHER TRIBUNAL IF SHE'S BEEN STEEPING IN THE COVERAGE OF THE CLEVELAND PLAIN DEALER SHE MAY WISH TO ASSURE HERSELF THAT VON ROLL'S PERSONNEL DON'T HAVE TAILS HORNS AND PITCHFORKS BUT SHE'LL ALSO PONDER THE PROPRIETY OF GREENPEACE USING HER COURTROOM TO RENEW A POLITICAL WAR AGAINST INCINERATION THAT THE GROUP HAS ALREADY LOST IN CONGRESS THE LABORATORY AND EVERYWHERE ELSE 9301190003 930119 MIDWEST EXCHANGE TO LAUNCH FUTURES OPTIONS ON SHRIMP MINNEAPOLIS EXCHANGE PLAN IS LATEST ATTEMPT TO FIND NEW AGRICULTURAL PRODUCTS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS THE MINNEAPOLIS GRAIN EXCHANGE SAID IT IS PLANNING TO LAUNCH A FUTURES AND OPTIONS CONTRACT FOR SHRIMP THE EXCHANGE WHICH PRIMARILY TRADES CONTRACTS FOR WHEAT GROWN IN THE NORTHERN PLAINS AND PACIFIC NORTHWEST SAID THE CONTRACT IS SUBJECT TO A VOTE BY ITS MEMBERS AND CLEARANCE BY THE COMMODITY FUTURES TRADING COMMISSION THE PROPOSAL IS THE LATEST IN A SEARCH BY THE FUTURES INDUSTRY TO FIND NEW AGRICULTURAL PRODUCTS LAST WEEK FOR EXAMPLE THE COFFEE SUGAR AND COCOA EXCHANGE IN NEW YORK PROPOSED FUTURES CONTRACTS FOR CHEDDAR CHEESE AND POWDERED MILK THE US FUTURES INDUSTRY WHICH IS DOMINATED NOWADAYS BY FINANCIAL CONTRACTS IS RIVETED BY THE IDEA OF LAUNCHING AGRICULTURAL CONTRACTS IN PART BECAUSE THEY TRACE THEIR HISTORY TO FARM GOODS BUT THE INDUSTRY HAS A CHECKERED LAUNCH RECORD THE CHICAGO MERCANTILE EXCHANGE FLOPPED AT ITS 1991 ATTEMPT TO LAUNCH A BROILER CONTRACT INDEED THE CHICAGO MERCANTILE EXCHANGE TRADED A SHRIMP FUTURES CONTRACT IN 1963 BUT IT FLOUNDERED IN PART BECAUSE STRONG US CONSUMER DEMAND HADN'T DEVELOPED YET SHRIMP CURRENTLY ISN'T TRADED ON ANY FUTURES EXCHANGE JAMES H LINDAU PRESIDENT OF THE MINNEAPOLIS GRAIN EXCHANGE SAID THE IDEA FOR A SHRIMP CONTRACT WAS GENERATED INTERNALLY AS PART OF THE EXCHANGE'S DRIVE TO FIND NEW PRODUCTS THE EXCHANGE TRADES HARD RED SPRING WHEAT AND WHITE WHEAT FUTURES AND OPTIONS MR LINDAU SAID THE CHANCES FOR A SHRIMP FUTURES CONTRACT HAVE IMPROVED BECAUSE US SHRIMP CONSUMPTION HAS TRIPLED SINCE THE 1960S THERE'S ALSO A LONGER LIST NOW OF IMPORTERS INTERESTED IN HEDGING AGAINST PRICE SWINGS SOME OF WHICH ARE UNITS OF COMPANIES WELLVERSED IN USING AGRICULTURAL FUTURES CONTRACTS MR LINDAU SAID THE LIST OF POTENTIAL HEDGERS INCLUDE THE GIANT GRAIN EXPORTERS CARGILL INC AND CONTINENTAL GRAIN CO THE PROPOSED SHRIMP FUTURES CONTRACT WOULD TRADE FROM 940 AM TO 130 PM CENTRAL TIME EACH CONTRACT WOULD BE FOR 5000 POUNDS OF FROZEN HEADLESS SHRIMP FOR DELIVERY IN MARCH JUNE SEPTEMBER AND DECEMBER DELIVERY AT PAR WOULD BE AT EXCHANGEAPPROVED FACILITIES NEAR MIAMI TAMPA FLA AND BROWNSVILLE TEXAS DELIVERY AT A DISCOUNT OR PREMIUM WOULD BE AT APPROVED FACILITIES AROUND NEW YORK CITY AND LOS ANGELES 9301190002 930119 INTERNATIONAL FOUR EXECUTIVES IN INDIA RESIGN FROM CITIBANK JOBS SPECIAL TO THE WALL STREET JOURNAL LONDON FOUR EXECUTIVES RESIGNED FROM THE INDIAN OPERATIONS OF CITICORP'S CITIBANK BANKING UNIT WHICH HAS BEEN ACCUSED OF INVOLVEMENT IN A SECURITIESFRAUD SCANDAL THAT DEVASTATED THE BOMBAY STOCK MARKET THE FOUR EXECUTIVES WERE INVOLVED IN CITIBANK'S TREASURY OPERATIONS IN INDIA SAID KEN CAMPBELL A CITIBANK SPOKESMAN CITIBANK WOULDN'T IDENTIFY THE EXECUTIVES OR ELABORATE ON THE RESIGNATIONS A PERSON FAMILIAR WITH CITIBANK'S OPERATIONS IN INDIA SAID THE RESIGNATIONS FOLLOWED AN INTERNAL INVESTIGATION BY THE NEW YORK COMPANY THE PEOPLE HAVE LEFT BECAUSE OF THE PRESSURES OF THE SITUATION THE PERSON SAID SPEAKING ON CONDITION OF ANONYMITY THEIR RESIGNATIONS FOLLOWED A VISIT TO INDIA LAST WEEK BY A TEAM FROM THE US FEDERAL RESERVE BOARD BUT A CITIBANK SPOKESMAN IN BOMBAY WAS QUOTED IN THE BRITISH PRESS AS SAYING THERE WAS NO CONNECTION THOUSANDS OF INDIANS HAVE BEEN HURT BY THE 11 BILLION FINANCIAL SCANDAL WHICH INCLUDED A CRASH OF THE BOMBAY STOCK MARKET IN APRIL SEVERAL INDIAN GOVERNMENT REPORTS HAVE INDICATED BANKS SKIRTED THE LAW WHILE TRADING IN GOVERNMENT BONDS AND INVESTING MONEY FOR CORPORATE CLIENTS CITIBANK HASN'T FACED ANY FORMAL CHARGES IN THE CASE BUT ITS ROLE HAS BEEN SHARPLY QUESTIONED WITH ALLEGATIONS OF CITIBANK INVOLVEMENT COMING FROM GOVERNMENT INVESTIGATORS STATERUN COMPANIES AND THE INDIAN NEWS MEDIA IN ADDITION BRITAIN'S STANDARD CHARTERED BANK PLC IS SUING CITIBANK AMONG OTHER BANKS IN AN EFFORT TO RECOVER MONEY IT LOST IN THE SCANDAL CITIBANK STRONGLY DISPUTES THE CLAIM 9301190001 930119 INTERNATIONAL THOMSONCSF WINS CONTRACT PARIS THOMSONCSF SA THE FRENCH ELECTRONICS AND DEFENSE EQUIPMENT GROUP SAID IT WAS AWARDED A CONTRACT TO PROVIDE AIR TRAFFIC CONTROL NAVIGATION AND TELECOMMUNICATIONS SYSTEMS FOR SAUDI ARABIA'S NEW KING FAHD INTERNATIONAL AIRPORT THOMSONCSF WHICH IS A MEMBER OF A CONSORTIUM THAT INCLUDES TWO SAUDI COMPANIES INTERNATIONAL SYSTEM ENGINEERING AND STESA DIDN'T DISCLOSE THE VALUE OF THE CONTRACT 9301180174 930118 INTERNATIONAL WASHINGTON INSIGHT CLINTON IN SEEKING MIDDLE EAST SOLUTION SHOULD FOCUS ON TOO MUCH STABILITY' BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS BILL CLINTON TAKES OFFICE THIS WEEK UNDOUBTEDLY CONTEMPLATING THE LATEST BOMBING RAID ON IRAQ AND THE STALLED ARABISRAELI PEACE TALKS THERE WILL BE LOTS OF WASHINGTON HANDWRINGING ABOUT THE UNSTABLE MIDDLE EAST THAT FRETTING MISSES THE POINT THE MAIN PROBLEM IN THE MIDDLE EAST IS THAT THERE IS TOO MUCH POLITICAL STABILITY NOT TOO LITTLE THE REGION'S POWERS NEED TO BE CONVINCED THAT THE STATUS QUO MUST CHANGE UNLESS MR CLINTON UNDERSTANDS THAT FUNDAMENTAL POINT HIS CHANCES OF SOLVING THE REGION'S PROBLEMS AREN'T GREAT IT'S INSTRUCTIVE TO LOOK BACK 17 YEARS TO 1975 YITZHAK RABIN HAD JUST BECOME PRIME MINISTER OF ISRAEL HE IS PRIME MINISTER TODAY HAFEZ ASSAD WAS PRESIDENT OF SYRIA HE'S PRESIDENT TODAY YASSER ARAFAT WAS IN CHARGE OF THE PALESTINE LIBERATION ORGANIZATION HE'S IN CHARGE OF THE PLO TODAY HOSNI MUBARAK WAS VICE PRESIDENT OF EGYPT HE'S PRESIDENT TODAY KING HUSSEIN WAS RULING JORDAN HE RULES JORDAN TODAY SADDAM HUSSEIN WAS EFFECTIVELY RUNNING IRAQ HE RUNS IT TODAY THE HOUSE OF SAUD WAS RULING SAUDI ARABIA IT IS RULING SAUDI ARABIA TODAY THE ALSABAH FAMILY WAS RUNNING KUWAIT THANKS TO OPERATION DESERT STORM IT RULES KUWAIT TODAY BILL CLINTON MEANWHILE WAS A JUNIOR LAW PROFESSOR IN ARKANSAS WHO HADN'T EVER RUN ANYTHING BIGGER THAN THE GEORGETOWN UNIVERSITY STUDENT BODY IT'S EASY TO SEE WHY MIDDLE EASTERN LEADERS ARE COMFORTABLE WITH THE STATUS QUO THEY HAVE PROVEN THEY CAN SURVIVE AND EVEN PROSPER PERSONALLY IF IT IS SUSTAINED BUT THERE'S LITTLE PROOF THAT THEY CAN SURVIVE LITERALLY OR POLITICALLY IF THERE IS CHANGE THE ONE TRULY CATACLYSMIC CHANGE OF POWER IN THE REGION IN THE PAST TWO DECADES THE OVERTHROW OF THE SHAH OF IRAN SERVED ONLY TO CONVINCE OTHER LEADERS THAT THEY AREN'T LIKELY TO SURVIVE CHANGE THE MIDDLE EAST'S LONGTIME RULERS MUST CHUCKLE WHEN THEY SEE A NEWCOMER SUCH AS MR CLINTON PROCLAIMING THE URGENCY OF SOLVING THE ARABISRAELI DISPUTE AND CONCLUDING THE ENDLESS DEBATE OVER THE PALESTINIANS KING HUSSEIN ALONE HAS HEARD SUCH LECTURES FROM EIGHT US PRESIDENTS AND LIVED THROUGH SEVEN REGIONAL WARS THE CHALLENGE FOR MR CLINTON IS TO CONVINCE MIDDLE EASTERN LEADERS THAT THEIR SITUATION WILL WORSEN IF THEY DON'T ADDRESS THE REGION'S PROBLEMS NOW THERE IS ONE POWERFUL ARGUMENT TO SUPPORT THAT ASSERTION THE LONGER MIDDLE EAST PROBLEMS FESTER THE GREATER THE OPPORTUNITY THAT ISLAMIC FUNDAMENTALISM WILL SPREAD FUNDAMENTALISTS REPRESENT A THREAT TO GOVERNMENTS ACROSS THE REGION ARAB AND ISRAELI ALIKE THAT IS WHY MIDDLE EASTERN LEADERS SHOULD BE WILLING TO REACH REAL PEACE AGREEMENTS WITH ISRAEL AND SHOULD STOP ALLOWING SADDAM HUSSEIN TO DISTRACT THE REGION WITH HIS BRINKMANSHIP FUNDAMENTALIST MOVEMENTS HAVE BEEN FEEDING OFF THE PALESTINIAN PROBLEM AND ARAB LEADERS' DEPENDENCE ON THE WEST TO REIN IN SADDAM HUSSEIN BOTH SITUATIONS IN THE PROPAGANDA OF ISLAMIC RADICALS HIGHLIGHT THE DECREPIT NATURE OF CURRENT ARAB GOVERNMENTS THE FUNDAMENTALISTS ARE AS BIG A THREAT TO ISRAEL AS TO ANY ARAB GOVERNMENT ISLAMIC RADICALS ARE TRYING TO CONVINCE FRUSTRATED PALESTINIANS LIVING UNDER ISRAELI OCCUPATION THAT THEY CAN END THEIR PLIGHT ONLY WHEN THEY STOP THINKING AS PALESTINIAN NATIONALISTS AND INSTEAD BECOME MEMBERS OF A BROADER ISLAMIC MOVEMENT SUCH ARGUMENTS HELP EXPLAIN WHY FUNDAMENTALISTS FULMINATE AGAINST CURRENT ARABISRAELI PEACE EFFORTS SUCCESS IN NEGOTIATIONS WOULD UNDERMINE THE RADICALS' APPEAL IN A RECENT APPEARANCE AT THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY ISRAEL'S DEPUTY FOREIGN MINISTER YOSSI BEILIN SUMMARIZED THE SITUATION THIS WAY THE BATTLE AGAINST FANATICISM IS AT A CRITICAL STAGE AS THE PEACE PROCESS AND THE PROSPECT OF A PEACE AGREEMENT THREATEN THE VERY FOUNDATIONS OF THE FUNDAMENTALIST MOVEMENT THAT'S WHY MR CLINTON SHOULD BE ABLE TO CONVINCE THE REGION THAT CHANGE NOT STABILITY WOULD DO EVERYONE A LOT OF GOOD 9301180173 930118 IBM CHIEF FACES GROWING OPPOSITION AMID POOR RESULTS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOR JOHN F AKERS THE PUGNACIOUS EXNAVY PILOT AT THE HELM OF INTERNATIONAL BUSINESS MACHINES CORP THE DIN OF OPPOSITION IS GETTING LOUDER THAN EVER AS IBM PREPARES TO REPORT RECORD LOSSES TOMORROW THE ECONOMIST AND FORTUNE MAGAZINE HAVE BOTH DECLARED THAT THE COMPUTER GIANT NEEDS A NEW CHIEF TO RESCUE IT FROM A MOUNTING CRISIS THE POWERFUL CALIFORNIA STATEEMPLOYEE PENSION FUND HAS WON A RARE MEETING WITH IBM'S OUTSIDE DIRECTORS AND ITS CHIEF DALE HANSON SAYS HE WANTS THEM TO DO MORE THAN JUST PUTTING THEIR ARM AROUND AKERS AND SAYING HE'S OUR GUY' MEANWHILE TWO EXIBM MANAGERS ARE CIRCULATING FIERCE ANTIAKERS MANIFESTOS AND WINNING SOME INFLUENTIAL AUDIENCES AMERICA'S MOST FAMOUS EXIBMER HAS ALSO SURFACED IN THE AKERS DRAMA IRREPRESSIBLY OFFERING HIS OWN SERVICES JUST IN CASE IBM SHOULD HAPPEN TO NEED AN OUTSIDE HAND IT BREAKS MY HEART THAT THEY'RE HAVING TO GO THROUGH THIS DECLARED ROSS PEROT APPEARING WHERE ELSE ON THE LARRY KING SHOW LAST WEEK IF THERE'S SOMETHING I COULD DO FOR IBM WELL I OWE THEM THAT FOREVER ADDED MR PEROT WHO STARTED HIS CAREER AT IBM NONE OF THESE CRUSADES AND CRITICISMS NECESSARILY POSES A THREAT TO MR AKERS SO FAR INSTITUTIONAL INVESTORS HAVEN'T MOUNTED THE KIND OF WELLCOORDINATED CAMPAIGN THAT CATALYZED CHANGES AT WESTINGHOUSE ELECTRIC CORP SEARS ROEBUCK & CO AND OTHER COMPANIES IBM DIRECTORS PUBLICLY BACKED MR AKERS LAST FALL AND HAVE REFUSED TO DISCUSS THE SUBJECT EVER SINCE MR AKERS HIMSELF WOULDN'T COMMENT ON HIS LATEST CRITICS THE EMBATTLED CHIEF EXECUTIVE OFFICER HAS REPEATEDLY INSISTED THAT HE HAS HIS BOARD'S SUPPORT AND MIGHT EVEN STAY AT IBM PAST DECEMBER 1994 WHEN HE REACHES IBM'S TRADITIONAL RETIREMENT AGE OF 60 JOHN AKERS HAS THE FULL SUPPORT OF IBM'S BOARD AN IBM SPOKESMAN REITERATED YESTERDAY BUT THE NOISE LEVEL OF OPPOSITION TO MR AKERS PROMISES TO KEEP RISING THIS MONTH TOMORROW IBM WILL ANNOUNCE THE MOST DISASTROUS FINANCIAL REPORT IN ITS 79YEAR HISTORY MASSIVE CHARGES FOR SHEDDING EMPLOYEES AND EQUIPMENT WILL BRING MORE THAN 3 BILLION IN 1992 LOSSES FOR THE COMPUTER GIANT'S TRADITIONAL BLOWOUT FOURTH QUARTER MR AKERS HAS PREDICTED ONLY BREAKEVEN RESULTS SOME ANALYSTS THINK THE FOURTH QUARTER ACTUALLY WILL SHOW A LOSS WHICH COULD DRIVE IBM'S STOCK EVEN FURTHER BELOW ITS RECENT 17YEAR LOWS IBM CLOSED AT 4825 A SHARE DOWN 50 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY THE SPOTLIGHT WILL STAY ON IBM NEXT WEEK WHEN ITS BOARD MEETS JAN 26 ONE AGENDA ITEM WILL BE THE 484ASHARE ANNUAL DIVIDEND WHICH MR AKERS LAST MONTH WARNED WAS IN JEOPARDY RIGHT NOW WALL STREET IS BETTING IBM'S BOARD WILL CUT THE PAYOUT IN HALF THE CALLS FOR MR AKERS'S HEAD IN FORTUNE AND THE ECONOMIST CHARACTERIZED IBM'S PLIGHT IN UNUSUALLY BLUNT TERMS HE HASN'T DONE THE JOB FOR EIGHT YEARS WHICH BY NOW SEEM AN ETERNITY HE HASN'T REMOTELY DONE IT DECLARED FORTUNE IN ITS JAN 11 ISSUE PREDICTING THAT IBM DIRECTORS MIGHT WIND UP FORCING MR AKERS OUT IT ADDED WERE AKERS TO MOVE FIRST HE WOULD SHOW THERE'S MORE THAN ONE WAY TO BE A HERO THE ECONOMIST IN ITS JAN 16 ISSUE ECHOED THE CRY PROPOSING GOOD REASONS FOR SHOWING MR AKERS THE DOOR AND CALLING IN AN OUTSIDER SOMEONE WITH A CLEAN SHEET OF PAPER IS WHAT IBM NOW NEEDS AT THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S MOST ACTIVIST INSTITUTIONAL SHAREHOLDER MR HANSON STOPPED SHORT OF EXPLICITLY CALLING FOR MR AKERS'S OUSTER BUT HE SAID CALPERS MAY WITHHOLD ITS VOTE FOR IBM'S DIRECTORS AT THE APRIL ANNUAL MEETING UNLESS WE REALLY START TO SEE SOMETHING COMING OUT OF IBM THAT SHOWS THAT THE BOARD HAS ASSERTED ITSELF IN TRYING TO DEAL WITH WHAT CAN BEST BE DESCRIBED AS A DETERIORATING SITUATION MR HANSON WOULDN'T SAY WHAT SPECIFIC STEPS HE WANTS IBM'S BOARD TO TAKE ONE FRUSTRATION FOR THE ANGRY INSTITUTIONS SITTING ON BILLIONS IN LOSSES FROM IBM STOCK IS THAT THEY DON'T HAVE A SIMPLE RALLYING CRY FOR IBM'S COMPLEX MORASS ANALOGOUS TO DEMANDING SEARS TO SHED ITS FINANCIAL UNITS THE RESULT MANY INSTITUTIONS HAVE BEEN REDUCED TO SILENCE OR SABERRATTLING OR FOCUSING THEIR OUTRAGE ON MR AKERS PERSONALLY WITH SEARS OR WESTINGHOUSE THERE WERE SPECIFIC SUGGESTIONS THAT INSTITUTIONAL INVESTORS COULD HELP MANAGEMENT OR THE BOARD SEE THE VALUE OF SPLITTING OFF DEAN WITTER RECOGNIZING WRITEDOWNS WITH IBM WE'RE WRESTLING WITH A MORE COMPLICATED SITUATION SAID JON LUKOMNIK A NEW YORK CITY ASSISTANT COMMISSIONER OF FINANCE REPRESENTATIVES OF NEW YORK'S GIANT PENSION FUNDS SCHEDULED A FEB 1 MEETING WITH IBM TREASURER ROBERT RIPP CITY OFFICIALS SAID THEY ARE CONCERNED ABOUT THE ARMONK NY COMPANY BUT DON'T HAVE ANY SPECIFIC DEMANDS MEANWHILE OTHER PLOTS AGAINST MR AKERS ARE BEGINNING TO COME OUT OF THE WOODWORK CHARLES FERGUSON A FORMER IBM SOFTWARE STRATEGIST AND WELLCONNECTED CONSULTANT IS CIRCULATING A FIERY 14PAGE MANIFESTO TO IBM DIRECTORS PROPOSING A RADICAL NEW STRATEGY FOR IBM BEGINNING WITH FIRING MR AKERS IBM OFFICIALS HAVE PRIVATELY DISMISSED MR FERGUSON AS A DISGRUNTLED FORMER EMPLOYEE TRYING TO PROMOTE A NEW BOOK ABOUT THE COMPUTER INDUSTRY BUT OTHERS ARE TAKING THE YOUNG TRADE SCHOLAR SERIOUSLY HE SAYS VERSIONS OF HIS ANTIAKERS ANALYSIS WILL APPEAR THIS MONTH IN UPSIDE A SILICON VALLEY MAGAZINE AND NEXT MONTH IN THE NEW YORK TIMES MAGAZINE AMONG THE PROPOSALS BEING PUSHED BY MR FERGUSON AND HIS COAUTHOR CHARLES MORRIS IBM SHOULD MOVE MORE AGGRESSIVELY TO CANNIBALIZE ITS HUGE MAINFRAME BUSINESS WITH NEW LESS PROFITABLE DESKTOP MACHINES ALSO IBM SHOULD SHRINK BY DISMISSING SELECTED POOR PERFORMERS RATHER THAN OFFERING INDISCRIMINATE BONUSES FOR EARLY RETIREMENT IN SAN DIEGO A LITTLEKNOWN EXIBM MANAGER NAMED DALE SUNDBY IS PUSHING AN ANTIAKERS MANIFESTO OF HIS OWN A PROFESSED PHILOSOPHICAL DISCIPLE OF MR PEROT MR SUNDBY SHARES SOME OF HIS MENTOR'S QUIRKY CANDO ZEAL PROPOSING A TERM LIMIT FOR IBM'S CHIEF EXECUTIVE OFFICER AND A LEADERSHIP INSTITUTE FOR IBM MANAGERS TO STUDY UNDER THE NATION'S TOP MILITARY ACADEMIC GOVERNMENT AND BUSINESS MINDS MR SUNDBY'S UNLIKELY CAMPAIGN FOR FRESH BLOOD AT IBM HAS CAUGHT THE EYE OF SOME BIG STOCKHOLDERS CALPERS CHIEF MR HANSON HAS MET WITH MR SUNDBY AND CIRCULATED HIS PROPOSAL LAST WEEK AT A REGULAR MEETING OF THE COUNCIL OF INSTITUTIONAL INVESTORS 9301180172 930118 TOY MAKERS ARE EXPECTED TO POST GAINS REBOUND SEEN EVEN AS SALES OF VIDEO GAMES REVIVE RETAILERS CONSOLIDATE BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL MAJOR TOY MANUFACTURERS ARE EXPECTED TO REPORT IMPROVED FOURTHQUARTER RESULTS DESPITE A RESURGENCE IN VIDEO GAME SALES AND CONTINUED CONSOLIDATION AMONG TOY RETAILERS ANALYSTS SAY AFTER LOSING STEAM IN 1991 SALES OF VIDEO GAMES JUMPED AN ESTIMATED 30 IN 1992 TO ABOUT 45 BILLION FROM 35 BILLION THE PRIOR YEAR SAYS JOHN TAYLOR ANALYST FOR LH ALTON & CO BUT A GOOD PART OF THE BUSINESS WAS DRIVEN BY TEENAGE AND OLDER CONSUMER PURCHASES AS A RESULT SALES OF DOLLS ACTION FIGURES AND OTHER TRADITIONAL TOYS DIDN'T SUFFER IT MIGHT BE HARD FOR ANALYSTS TO GET USED TO THE FACT THAT GI JOE AND SOME OF THE NEW CDROM VIDEO GAME SYSTEMS MAY HAVE LEARNED TO COEXIST PEACEFULLY SAYS JILL KRUTICK A SALOMON BROS ANALYST ANALYSTS EXPECT HASBRO INC THE NATION'S LARGEST TOY MAKER TO POST A NET INCOME INCREASE OF ABOUT 45 MATTEL INC IS EXPECTED TO POST A NEARLY 70 INCREASE IN NET WHILE FISHERPRICE INC IS EXPECTED TO REPORT THAT PROFIT NEARLY TRIPLED CHRISTMAS DIDN'T COME TO ALL TOY MAKERS HOWEVER TYCO TOYS INC WHOSE HIGHEND TOYS COMPETED DIRECTLY IN PRICE WITH VIDEO GAMES HAS ALREADY INDICATED IT WILL REPORT A 8 MILLION FOURTHQUARTER LOSS AND OTHERS INCLUDING LEWIS GALOOB TOYS INC ARE EXPECTED TO JUST ABOUT BREAK EVEN HASBRO BASED IN PAWTUCKET RI WILL REPORT PERSHARE EARNINGS OF ABOUT 74 CENTS UP 45 FROM 51 CENTS IN LAST YEAR'S FOURTH QUARTER ESTIMATES SALOMON'S MS KRUTICK REVENUE CLIMBED 11 TO 850 MILLION FROM 761 MILLION A YEAR AGO SHE PROJECTS THE COMPANY'S PLAYSKOOL DIVISION WHICH MAKES PRESCHOOL TOYS WAS UNDER PRESSURE FROM RIVAL TOY MAKERS HOWEVER HASBRO'S OTHER DIVISIONS WERE ABLE TO SCORE BIG WITH BESTSELLERS SUCH AS KENNER'S BATMAN AND NERF AND PARKER BROS'S MONOPOLY MATTEL EL SEGUNDO CALIF IS EXPECTED TO REPORT PERSHARE EARNINGS OF 44 CENTS A 69 INCREASE OVER LAST YEAR'S 26 CENTS SAYS MS KRUTICK HER ESTIMATE REFLECTS A ONETIME PRETAX CHARGE OF 5 MILLION THE COMPANY SAID IT IS TAKING IN THE LATEST FOURTH QUARTER AS A RESERVE AGAINST UNCOLLECTED DEBT OWED BY TOY RETAILER LIONEL CORP FOURTHQUARTER SALES ARE EXPECTED TO HAVE EQUALED 585 MILLION UP 18 OVER 4938 MILLION LAST YEAR DRIVING SALES WERE A STABLE OF BARBIE DOLLS HOT WHEEL TOY CARS AND DISNEY PRESCHOOL PRODUCTS FISHERPRICE OF EAST AURORA NY STUNG EARLIER THIS YEAR BY ORDER POSTPONEMENTS AND CANCELLATIONS REBOUNDED NICELY THIS CHRISTMAS KIDDER PEABODY INC ANALYST GARY JACOBSON ESTIMATES THE PRESCHOOL TOY MAKER WILL REPORT EARNINGS EQUAL TO 35 CENTS A SHARE NEARLY THREE TIMES THE YEARAGO QUARTER'S PROFIT OF 13 CENTS A SHARE SALES HELPED BY SEVERAL POPULAR HIGHTICKET ITEMS INCLUDING ITS TOURNAMENT TABLE ARE EXPECTED TO CLIMB 8 TO 200 MILLION FROM 185 MILLION WHILE EXPENSIVE TOYS AT FISHERPRICE SOLD WELL MANY AT TYCO TOYS DIDN'T PARTICULARLY THE MOUNT LAUREL NJ COMPANY'S 100 RADIO CONTROL CARS THAT NORMALLY APPEAL TO BOYS 10 YEARS OF AGE AND OLDER THEIR INTERESTS IN RECENT MONTHS HOWEVER HAVE TURNED TO A NEW CROP OF MORE COLORFUL AND CHALLENGING VIDEO GAME SYSTEMS TYCO ALSO OVERESTIMATED 1992 SALES OF ITS ARIEL MERMAID DOLLS A BLOCKBLUSTER THE PREVIOUS YEAR LAST MONTH THE COMPANY SAID IT EXPECTED TO REPORT AN 8 MILLION LOSS EQUAL TO ABOUT 24 CENTS A SHARE REFLECTING THE COSTS OF INCREASED ADVERTISING AND OTHER EXPENSES RELATED TO SLOWMOVING PRODUCTS STILL TYCO IS EXPECTED TO REPORT A 42 INCREASE IN FOURTHQUARTER SALES TO 260 MILLION FROM 1834 MILLION NOTES LAURIE SMITH ANALYST FOR SEIDLER AMDEC SECURITIES IN LOS ANGELES OF THE INCREASE ABOUT 60 MILLION IS FROM RECENTLY ACQUIRED UNIVERSAL MATCHBOX GROUP LTD AND ILLCO TOY CO ADDS MS SMITH AMONG OTHER TOY MAKERS LEWIS GALOOB IS EXPECTED TO POST NET RANGING FROM BREAK EVEN TO 10 CENTS A SHARE ON RELATIVELY FLAT REVENUE LH ALTON'S MR TAYLOR ESTIMATES IN THE YEARAGO FOURTH QUARTER THE SAN FRANCISCO TOY MAKER REPORTED A LOSS OF SEVEN CENTS A SHARE ON 458 MILLION IN REVENUE AND MR JACOBSON EXPECTS SLM INTERNATIONAL INC TO REPORT FOURTHQUARTER PER SHARE EARNINGS OF 38 CENTS VERSUS 22 CENTS LAST YEAR REVENUE FOR THE MAKER OF PLASTIC TOY TRUCKS AND OTHER VEHICLES WILL EQUAL 70 MILLION UP 66 FROM 42 MILLION LAST YEAR HE SAYS THOUGH THE YEAR ENDED ON AN UPBEAT NOTE RETAIL SALES WERE GENERALLY WEAK THROUGHOUT THE FIRST NINE MONTHS OF THE YEAR NOTES PAUL VALENTINE ANALYST FOR STANDARD & POORS CORP LAST FALL CHILD WORLD INC WENT OUT OF BUSINESS THEN LAST MONTH SPECIALTY STORE OPERATOR MELVILLE CORP ANNOUNCED THE CLOSINGS OF 250 KAYBEE STORES EARLY LEARNING CENTERS ALSO SAID IT WAS DISMANTLING ITS 73STORE CHAIN IN THE US NEXT MONTH AND EARLIER THIS WEEK LIONEL CORP IN REORGANIZATION UNDER CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SAID IT CLOSED 13 STORES AND WILL SHUTTER ANOTHER 27 STORES NEXT MONTH HELPED IN PART BY THE PROBLEMS OF SOME COMPETITORS TOYS R US INC THE NATION'S LARGEST TOY RETAILER HAD ROBUST SALES THIS HOLIDAY SEASON SALLY SMITH ANALYST FOR ALEX BROWN & SONS ESTIMATES THE PARAMUS NJ RETAILER WILL REPORT PERSHARE EARNINGS OF 112 FOR THE FISCAL FOURTH QUARTER ENDING IN LATE JANUARY A 27 INCREASE OVER 88 CENTS A SHARE LAST YEAR MS SMITH EXPECTS TOYS R US REVENUE TO CLIMB 18 TO 34 BILLION FROM 286 BILLION IN THE YEARAGO QUARTER THE RETAILER HAS ALREADY SAID SALES FOR THE EIGHT WEEKS BEFORE CHRISTMAS ROSE 19 LOOKING AHEAD ANALYSTS SAYS TOY MAKERS SHOULD ALSO DO WELL IN 1993 NOTING THAT STRONG CHRISTMAS SALES IN 1992 DEPLETED RETAIL INVENTORY IN MOST CATEGORIES BUT SOFT EUROPEAN SALES AND A GROWING TENDENCY AMONG US RETAILERS TO ORDER LATE IN THE YEAR ARE OF CONCERN THEY ADD 9301180171 930118 BIOTECHNOLOGY STOCKS POISED TO GROW IN UK A SMALL GROUP OF FIRMS EXPECTS TO SEEK LISTINGS ON LONDON'S EXCHANGE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AFTER YEARS OF TALK THE LATEBLOOMING EUROPEAN BIOTECHNOLOGY INDUSTRY APPEARS LIKELY TO PRODUCE SOMETHING NOVEL FOR INVESTORS A SMALL GROUP OF PUBLICLY TRADED BIOTECHNOLOGY STOCKS FOLLOWING A STOCK OFFERING LAST YEAR BY ONE SMALL COMPANY BRITISH BIOTECHNOLOGY PLC AT LEAST TWO OTHER UK FIRMS SAY THEY HOPE TO SEEK LISTINGS ON LONDON'S STOCK EXCHANGE THIS YEAR OR NEXT YEAR THE COMPANIES ARE CELLTECH LTD THE BIGGEST BIOTECHNOLOGY SPECIALIST IN BRITAIN AND SCOTIA PHARMACEUTICALS LTD A SMALL FIRM SPECIALIZING IN A PROMISING NEW CLASS OF DRUGS BASED ON THE CHEMISTRY OF FATS THE NEW STOCK ISSUES WOULD BE AN IMPORTANT STEP FOR THE EMERGING BIOTECHNOLOGY INDUSTRY IN EUROPE SAYS JOHN GORDON RESEARCH DIRECTOR OF BRITISH BIOTECHNOLOGY IN OXFORD THOUGH NOTHING MUCH COMPARED WITH THE HUGE US BIOTECHNOLOGY SECTOR WITH MORE THAN 200 STOCKS TRADED THE APPEARANCE OF EVEN A TINY GROUP OF SPECIALIZED BIOTECHNOLOGY STOCKS ON LONDON'S EXCHANGE COULD MAKE IT EASIER FOR FIRMS ELSEWHERE IN EUROPE TO RAISE MONEY HE SAYS CHRONIC CASH SHORTAGE LACK OF CASH HAS LONG BEEN THE CHRONIC CRIPPLING AILMENT OF THE EUROPEAN BIOTECHNOLOGY INDUSTRY MOST BIG EUROPEAN INVESTORS ARE INVETERATELY CAUTIOUS ABOUT RISKY TECHNOLOGY SO THOSE FEW EUROPEAN BIOTECHNOLOGISTS WHO AREN'T WORKING IN UNIVERSITIES OR BIG DRUG COMPANIES HAVE EKED OUT MEAGER EXISTENCES MAINLY WITH GOVERNMENT RESEARCH GRANTS OR WITH THE TIGHTFISTED BACKING OF THE MOST ADVENTUROUS OF INSTITUTIONAL INVESTORS LATELY ENCOURAGED BY THE MATURING OF THE US BIOTECHNOLOGY SECTOR MANY OF THOSE INVESTORS HAVE STARTED PUSHING FOR STOCK LISTINGS IN EUROPE TO HELP BOOST THEIR RETURNS OR MAKE IT EASIER FOR THEM TO BAIL OUT THE BIGGEST HOOPLA WOULD LIKELY ATTEND THE PLANNED COMINGOUT LATE THIS YEAR OR EARLY NEXT YEAR OF CELLTECH THE BESTKNOWN OF BRITAIN'S BIOTECHNOLOGY COMPANIES FOUNDED IN 1980 WITH GOVERNMENT BACKING TO COMMERCIALIZE BRITISH DISCOVERIES THE CLOSELYHELD COMPANY NOW GETS MUCH OF ITS REVENUE PRODUCING SOCALLED MONOCLONAL ANTIBODIES A BASIC WORKING MATERIAL OF THE WORLD BIOTECHNOLOGY INDUSTRY IT'S STILL REPORTING A NET LOSS 46 MILLION 71 MILLION ON REVENUE OF 53 MILLION IN THE SIX MONTHS ENDED MARCH 31 CHIEF EXECUTIVE PETER FELLNER DOESN'T EXPECT A PROFIT FOR SEVERAL YEARS BUT CELLTECH'S BRIGHTEST HOPES INCLUDE THREE GENETICALLY ENGINEERED DRUGS THAT IT'S RESEARCHING IN PARTNERSHIPS WITH ESTABLISHED PHARMACEUTICAL COMPANIES INCLUDING GERMANY'S BAYER AG ONE OF THE DRUGS TARGETED AGAINST SEPTIC SHOCK IS ALREADY IN THE SECOND OF THE INDUSTRY'S THREE STANDARD PHASES OF CLINICAL TRIALS THE OTHER TWO AGAINST OVARIAN CANCER AND ACUTE MYELOID LEUKEMIA ARE SCHEDULED TO BEGIN TRIALS LATER THIS YEAR BESIDES GIVING SOME EXISTING CELLTECH INVESTORS A CHANCE TO SELL SOME HOLDINGS THE CONTEMPLATED STOCK ISSUE WOULD HELP RAISE 20 MILLION TO 30 MILLION IN ADDITIONAL RESEARCH FUNDS MR FELLNER SAYS SCOTIA IN GUILDFORD ENGLAND HOPES TO SEEK A STOCK EXCHANGE LISTING NEXT YEAR SAYS CHIEF EXECUTIVE DAVID HORROBIN ITS SPECIALTY IS DESIGNING DRUGS FROM FATTY ACID MOLECULES A BASIC BUILDING BLOCK OF CELLS CHIEFLY THROUGH SALES OF AN ECZEMA MEDICINE ITS CLOSELYHELD PARENT COMPANY SCOTIA HOLDINGS PLC POSTED A NET PROFIT OF 701000 ON REVENUE OF 163 MILLION IN THE YEAR ENDED LAST JUNE 30 FINALSTAGE CLINICAL TRIALS ARE UNDER WAY FOR A RELATED DRUG TO PREVENT NERVE DEGENERATION IN DIABETIC PATIENTS 9301180170 930118 LAW WRONGFULDEATH SUITS AND CUSTODY CASES SPOTLIGHT SPECIAL RELATIONSHIP OF TWINS BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL TWINS SHARE A WOMB A BIRTH DATE AND PARENTS SHOULD THEY ALSO SHARE SPECIAL LEGAL STATUS LAWYERS AROUND THE COUNTRY ARE STARTING TO CLAIM THAT TWINS HAVE AN EXTRAORDINARY BOND THAT ENTITLES THEM TO MORE COMPENSATION FOR LOSS THAN OTHER FAMILY MEMBERS GET SPURRED BY THE RESEARCH OF A SOUTHERN CALIFORNIA PSYCHOLOGIST AND A HANDFUL OF OTHER EXPERTS THE ARGUMENT IS GAINING GROUND IN THE COURTS TWINS SHARE KEY DEVELOPMENTAL EXPERIENCES AND TEND TO HAVE CLOSER RELATIONSHIPS THAN OTHER BROTHERS AND SISTERS SAYS NANCY SEGAL AN ASSOCIATE PROFESSOR AT CALIFORNIA STATE UNIVERSITY AT FULLERTON HER STUDIES ARE BEING CITED IN CLAIMS FOR DAMAGES IN WRONGFULDEATH CASES IN DISPUTES OVER CUSTODY AND EVEN IN REQUESTS FOR IMMIGRATION WHEN A TWIN HASN'T BEEN GRANTED PERMISSION TO ENTER THE US IN ONE CASE SET FOR NEXT JULY IN LOS ANGELES FEDERAL COURT THE FAMILY OF A 19YEAROLD MAN WHO DROWNED FOUR YEARS AGO IS CLAIMING THAT HIS TWIN SISTER IS ENTITLED TO MORE MONEY THAN SHE MIGHT HAVE DESERVED WERE SHE NOT A TWIN THE ARGUMENT WE'RE GOING TO MAKE IS THAT TWINS TEND TO REMAIN VERY CLOSELY CONNECTED THROUGH THEIR ADULT LIFE AND RECEIVE THE COMPANIONSHIP SOCIETY CARE AND COMFORT THAT WOULDN'T ALWAYS BE PRESENT IN A NONTWIN RELATIONSHIP SAYS WILLIAM CLOUGH A LAWYER FOR THE PARENTS AND SISTER OF ANDRE KRASOWSKIS WHO DIED WHILE WORKING FOR A YMCA SUMMER CAMP MR CLOUGH EXPECTS TO USE TWIN RESEARCH TO REBUT AN EXPECTED DEFENSE CONTENTION THAT SIBLINGS USUALLY GROW APART AS THEY GROW OLDER A LAWYER FOR THE DEFENDANT THE GLENDALE CALIF YMCA DECLINES TO COMMENT ON THE THEORY SOME LAWYERS ARE EVEN CLAIMING THAT MONETARY AWARDS TO THE ENTIRE FAMILY AFTER A TWIN'S WRONGFUL DEATH SHOULD BE HIGHER BECAUSE A LIVING TWIN REMAINS A PERSISTENT HAUNTING IMAGE OF THE RELATIVE WHO DIED IN A CASE HEADING FOR TRIAL IN MOORHEAD MINN THE FAMILY OF A 24YEAROLD TWIN ELECTROCUTED TWO YEARS AGO IN A FARMING ACCIDENT IS SUING THE MAKER OF A GRAIN BIN AND A POWER COMPANY THE FAMILY'S LAWYER PETER DOSLAND CONTENDS THAT THE SPECIALNESS OF TWINS THE FACT OF TWINSHIP IN THE FAMILY AFFECTS THE LOSS THAT THE WHOLE FAMILY FEELS HE ADDS THE SURVIVING TWIN IS A CONSTANT REMINDER AND IF THE JURY AWARDS DAMAGES THE LAWYER SAYS HE PLANS TO ARGUE THAT THE SURVIVING TWIN'S SHARE SHOULD BE MORE GENEROUS THAN THAT OF HIS OLDER BROTHER AND WIDOWED MOTHER THERE'S NO QUESTION BUT THAT THE FACT OF TWINSHIP MAGNIFIES THE AID ADVICE COMFORT AND OTHER SUPPORT THE DEAD MAN WOULD HAVE PROVIDED TO HIS TWIN MR DOSLAND SAYS BUT SOME WHO STUDY TWINS DON'T BELIEVE THE RELATIONSHIP AUTOMATICALLY DESERVES DISTINCTION IN THE COURTROOM ADAM MATHENY PROFESSOR OF PEDIATRICS AT KENTUCKY'S UNIVERSITY OF LOUISVILLE AND DIRECTOR OF AN EXAMINATION OF 800 TWIN PAIRS CALLED THE LOUISVILLE TWINS STUDY SEES NO STRONG SCIENTIFIC EVIDENCE THAT SEPARATION FROM A TWIN IS MORE SHATTERING THAN THAT FROM OTHER CLOSE RELATIVES OR COMPANIONS WE DON'T HAVE A GOOD YARDSTICK LIKE AN IQ TEST FOR MEASURING DEGREES OF PSYCHOLOGICAL LOSS IT'S A QUALITATIVE JUDGMENT NOT A QUANTITATIVE JUDGMENT MR MATHENY SAYS WE HAVE SOME TWINS IN OUR STUDY WHO ABSOLUTELY HATE EACH OTHER YOU CAN'T MAKE A BLANKET GENERALIZATION ABOUT THE SPECIALNESS OF TWIN RELATIONSHIPS ADDS PHOENIX CLINICAL PSYCHOLOGIST HERBERT L COLLIER WHO HAS BEEN CALLED AS AN EXPERT WITNESS IN SEVERAL CUSTODY CASES INVOLVING PARENTS WHO WERE CONSIDERING SPLITTING THEIR TWINS HE SAYS THAT ALTHOUGH SPECIAL AFFINITIES MAY FORM THE TWIN RELATIONSHIP MAY ALSO REFLECT SUCH FACTORS AS THEIR AGE AND WHETHER THE SIMILARITY WAS REINFORCED BY PARENTS' ACTIONS SUCH AS DRESSING THEM ALIKE AS AN EXPERT WITNESS IN THE MOORHEAD CASE DR SEGAL SAYS SHE IS PREPARED TO SHOW THAT THE TWINS NOT ONLY TOOK PART IN THE SAME BIRTHDAY CELEBRATIONS AND SCHOOL EXPERIENCES BUT HAD ANOTHER BOND WHEN YOU LOSE A TWIN YOU NOT ONLY LOSE A SIBLING BUT YOU LOSE A REAL KEY SENSE OF YOUR IDENTITY SHE SAYS DR SEGAL A FRATERNAL TWIN HERSELF BEGAN STUDYING TWIN BEREAVEMENT AT THE UNIVERSITY OF MINNESOTA'S CENTER FOR TWIN AND ADOPTION RESEARCH EIGHT YEARS AGO SOME 170 PEOPLE HAVE RESPONDED TO HER 200QUESTION SURVEY DESIGNED TO MEASURE SORROW ON A SCALE THAT RANGES FROM NO GRIEF TO TOTAL DEVASTATION SURVEY RESULTS FOR THE FIRST 70 TWINS SCHEDULED TO BE PUBLISHED IN THE FEBRUARY ISSUE OF THE RESEARCH JOURNAL HUMAN BIOLOGY SUGGEST THAT THE LOSS OF A TWIN BROTHER OR SISTER IS GENERALLY EXPERIENCED MORE ACUTELY THAN THE DEATH OF OTHER SIBLINGS IDENTICAL TWINS SUFFER MORE GRIEF ON AVERAGE THAN FRATERNAL TWINS THE SURVEY SHOWS THAT CORRESPONDS WITH ANECDOTAL REPORTS GATHERED BY SUCH TWINS GROUPS AS THE 17000MEMBER NATIONAL ORGANIZATION OF MOTHERS OF TWINS CLUBS FAMILIES HAVE TAKEN TO THIS KIND OF RESEARCH TO HELP PROVE WHAT THEY ALREADY KNEW OR FELT THAT THEY KNEW SAYS LOIS GALLMEYER EXECUTIVE SECRETARY OF THE ALBUQUERQUE NM ORGANIZATION RAYMOND BRANDT OF FORT WAYNE IND LOST HIS IDENTICAL TWIN BROTHER 43 YEARS AGO AT THE AGE OF 20 I HAD AN OLDER BROTHER DIE MORE RECENTLY AND I'VE RECONCILED THE DEATH OF MY OLDER BROTHER BUT NOT OF MY TWIN SAYS MR BRANDT WHO FOUNDED TWINLESS TWINS SUPPORT GROUP INTERNATIONAL AN ASSOCIATION OF BEREAVED TWINS IT WAS LIKE LOSING ONE HALF OF MYSELF THERE ARE CURRENTLY THREE MILLION TWIN PAIRS IN THE US ACCORDING TO THE NATIONAL CENTER FOR HEALTH STATISTICS AND IN 1989 THE LATEST YEAR FOR WHICH STATISTICS ARE AVAILABLE THE NATION'S 90118 TWIN BIRTHS REPRESENTED A 6 INCREASE OVER THE PREVIOUS YEAR AS MORE MULTIPLEBIRTH BABIES SURVIVE TO ADULTHOOD WE NEED TO HELP PEOPLE UNDERSTAND TWIN RELATIONSHIPS BETTER DR SEGAL SAYS IN A KENT CITY MICH WRONGFULDEATH CASE TESTIMONY ABOUT TWIN BONDS LED A JURY TO AWARD A SURVIVING IDENTICAL TWIN AS MUCH MONEY FOR LOSS OF SOCIETY AS IT AWARDED THE DEAD WOMAN'S HUSBAND 25000 AND MORE THAN HER MOTHER RECEIVED MARK VERWYS A LAWYER FOR THE FAMILY OF PENNY FRYOVER WHO DIED AT 26 IN A 1986 CAR ACCIDENT ATTRIBUTES THE UNUSUAL RESULT TO TESTIMONY AND TRIAL EXHIBITS RELATED TO THE TWINS' BOND IT WAS THE ONLY CASE I EVER HAD WHERE I COULD BASICALLY PUT THE DEAD WOMAN ON THE STAND BECAUSE HER IDENTICAL TWIN LOOKED THE SAME HAD THE SAME MANNERISMS AND SPEECH PATTERNS SAYS MR VERWYS SHE TALKED ABOUT THE LOSS OF THIS UNIT THE TWINSHIP IN WHICH THE WHOLE WAS MORE THAN THE SUM OF ITS PARTS THE JURY WAS ALSO SHOWN PRELIMINARY RESULTS OF SOME OF DR SEGAL'S TWIN SURVEYS DR SEGAL WHO HAS APPEARED AS AN EXPERT WITNESS IN NEARLY A DOZEN WRONGFULDEATH ACTIONS SAYS SHE FINDS MOST JURIES RECEPTIVE TO THE EVIDENCE ABOUT TWIN LOSS ELIZABETH BRYAN A BRITISH PEDIATRICIAN AND EXPERT ON TWINS SAYS SHE HAS HAD SIMILAR SUCCESS TESTIFYING IN CUSTODY CASES THAT TWINS SHOULDN'T BE SEPARATED A BEREAVED TWIN'S LOSS IS A MUCH GREATER LOSS DR BRYAN SAYS FOR A MINNEAPOLIS LAWSUIT INVOLVING A BURN INJURY TO ONE OF A PAIR OF IDENTICAL TWIN TODDLERS ATTORNEY JOHN STEELE ASSEMBLED OLD PHOTOGRAPHS OF THE BOYS TOGETHER DRESSED ALIKE WHEN THE CASE SETTLED IN 1990 THE INJURED TWIN RECEIVED ABOUT 20 MILLION FROM THE DEFENDANTS MAKERS OF THE SLEEPWEAR HE WAS WEARING WHEN HE WAS BURNED THE AWARD INCLUDED MEDICAL COSTS AS WELL AS COMPENSATION FOR EMOTIONAL HARM ONE OF THE DEVASTATING FACTS WAS THAT EVERY WAKING MOMENT HE WAS GOING TO BE CONFRONTED BY A MIRROR OF WHAT HE MIGHT HAVE BEEN MR STEELE SAYS MORE UNUSUAL WAS THE AWARD TO THE UNINJURED TWIN HE RECOVERED 200000 BASED SOLELY ON THE THEORY THAT HE HAD SUFFERED A LOSS OF TWINSHIP MR STEELE SAYS IF HE HADN'T BEEN A TWIN HE WOULDN'T HAVE GOTTEN ANYTHING 9301180169 930118 MANAGER'S JOURNAL PCS TRUDGE OUT OF THE VALLEY OF DEATH BY ANDREW S GROVE RIGHT NOW THE COMPUTER BUSINESS IS IN A PAINFUL TRANSITION BETWEEN TWO WORLDS FROM THE OLD WORLD OF SLOW MOVING HIGHLY INTEGRATED SYSTEMS TO THE NEW WORLD OF QUICKLY DEVELOPED EXTREMELY COSTEFFICIENT BUT NOTVERYWELLINTEGRATED TECHNOLOGY I CALL THIS PAINFUL PERIOD THE VALLEY OF DEATH ANALYSTS FIRST STARTED TALKING ABOUT IT IN THE LATE 1980S WITH HOPES IT WOULD BE OVER IN A FEW YEARS WELL HERE WE ARE IN 1993 AND WE'RE NOT EVEN CLOSE TO PULLING OUT OF IT YET BUT THE UPHEAVAL IN THE COMPUTER INDUSTRY IS NEITHER RANDOM NOR DESTRUCTIVE THE VERY STRUCTURE OF THE INDUSTRY IS BEING DRAMATICALLY RESHAPED BY THE STANDARDIZATION OF THE PC IN THE COMPUTER INDUSTRY AS IT ORIGINALLY EXISTED CORPORATIONS SUCH AS IBM DEC NCR NEC AND WANG COMPETED AGAINST EACH OTHER AS VERTICALLY ALIGNED ENTITIES EACH CORPORATION DEVELOPED ITS OWN SILICON IMPLEMENTATION BUILT A COMPUTER PLATFORM AROUND THOSE CHIPS DEVELOPED ITS OWN SYSTEM SOFTWARE AND WROTE OR COMMISSIONED APPLICATIONS RUNNING ON ITS SYSTEM AND OF COURSE EACH COMPANY HAD ITS OWN SALESPEOPLE TO SELL THOSE COMPUTERS TO CORPORATE ACCOUNTS IN THE MID1980S WHEN THE PC TOOK OFF IT BULLDOZED THIS WHOLE STRUCTURE AND CREATED IN ITS WAKE THE NEW COMPUTER INDUSTRY NOW WE HAVE A BASE OF LARGELY COMMON SILICON COMPONENTS UPON WHICH VARIOUS COMPANIES BUILD A STANDARD COMPUTER PLATFORM THE SYSTEMS SOFTWARE FOR THESE COMPUTERS IS LARGELY COMMON THROUGHOUT THE INDUSTRY AS ARE THE PACKAGED APPLICATIONS WHICH CAN BE BOUGHT LIKE SO MANY CDS AT A MUSIC STORE AND VIRTUALLY ANYONE WHO HAS A STOREFRONT A TELEPHONE LINE OR A WAREHOUSE CAN DISTRIBUTE PCS AT EACH LEVEL OF THE NEW COMPUTER INDUSTRY MODEL COMPANIES ARE COMPETING TO INCREASE THEIR SHARE OF THE HORIZONTAL MARKET SEGMENT AT THE HEART OF THE PC THE INTEL ARCHITECTURE HAS APPROXIMATELY 85 OF THE MICROPROCESSOR SEGMENT THE MOTOROLA ARCHITECTURE USED IN APPLE'S MACINTOSH MACHINES ACCOUNTS FOR THE NEXT 10 TO 12 AND THEN THE VARIOUS OTHER ARCHITECTURES DIVIDE UP THE REST A SIMILAR SITUATION PREVAILS IN SYSTEMS SOFTWARE WHERE MICROSOFT'S DOS AND WINDOWS PRODUCTS ENJOY A COMPARABLE SHARE IN COMPUTER PLATFORMS THERE ARE ONLY TWO COMPANIES WITH MORE THAN 10 OF THAT HORIZONTAL SEGMENT IBM AND APPLE EVERYBODY ELSE IS IN THE SINGLE DIGIT PERCENTAGES IF THEY'RE LUCKY THERE ARE MORE THAN 400 MANUFACTURERS DIVIDING UP SHARES OF THE INTELBASED PC MARKET SEGMENT THE SAME IS TRUE WITH PACKAGED APPLICATIONS AND DISTRIBUTION WHERE MANY COMPANIES STRUGGLE FOR SHARES OF INCREASINGLY CUTTHROAT ENVIRONMENTS IN THE OLD COMPUTER INDUSTRY WHERE EACH COMPANY DEVELOPED INNOVATIONS AT ITS OWN PACE THE PRODUCT WOULDN'T BE INTRODUCED UNTIL EVERY ELEMENT WAS DEVELOPED AND INTEGRATED INTO THE FINAL PACKAGE IN THE NEW COMPUTER INDUSTRY THERE'S FEROCIOUS COMPETITION TO MOVE THE TECHNOLOGY FORWARD QUICKLY IN EACH OF THE COMPONENT SEGMENTS EVERY COMPANY WANTS TO BE THE FIRST WITH AN INNOVATION BECAUSE OF THE INCREDIBLE VOLUME OF THE INSTALLED BASE EACH INNOVATION HAS TO BE COMPATIBLE WITH THE STANDARDS THAT HAVE ALREADY DEVELOPED IN ALL THE OTHER BLOCKS THIS IS WHAT WE MEAN WHEN WE TALK ABOUT OPEN SYSTEMS THE RESULT IS THAT A TECHNOLOGICAL CHANGE IN ONE OF THESE LAYERS CAN PERCOLATE THROUGH THE UPPER LAYERS VERY RAPIDLY THE BENEFIT TO THE USER IS INCREDIBLY ADVANCED TECHNOLOGY AT ROCKBOTTOM PRICES WHILE THIS IS A FANTASTICALLY EFFICIENT SYSTEM FOR PRODUCT DEVELOPMENT USERS TODAY ARE LEFT TO DEAL WITH THE INTEGRATION PROBLEMS THAT USED TO BE WORKED OUT WITHIN EACH COMPANY BEFORE THE PRODUCT WAS INTRODUCED SEVERAL OBSTACLES FACE THE INDUSTRY AS WE GO THROUGH THIS VALLEY OF DEATH THE FIRST IS THE TECHNICAL OBSTACLE CORPORATE USERS WANT TO SCRAP THE BIG MAINFRAMES AND CONVERT TO PCBASED TECHNOLOGIES BUT BUILDING SOLID PC NETWORKS IS STILL ONE OF THE INDUSTRY'S BIGGEST TECHNICAL CHALLENGES THE COMPONENTS OF PC NETWORKS ARE VERY CHEAP BUT YOU PAY THROUGH THE NOSE TO MAKE THEM WORK TOGETHER THE PROBLEM OF SERVICING AND MAINTAINING PC NETWORKS IS COMPOUNDED BY THE FACT THAT SELLERS OF COMPUTER EQUIPMENT ARE JUST AS OVERWHELMED AS USERS BY ALL THE TECHNICAL COMPLEXITY IN THE OLD DAYS EACH SALESMAN HAD YEARS OF TRAINING IN HIS COMPANY'S PRODUCT LINE SUPPLIERS TODAY HAVE TO CONTEND WITH MULTIPLE COMPANIES' PRODUCT LINES EACH COMPLEX AND NEW THE INDUSTRY ALSO FACES DIFFERENT REGIONAL OBSTACLES THE EUROPEAN MARKET IS A MORASS OF CONFLICTING STANDARDS EUROPE IS FULL OF COUNTRYBASED COMPUTER COMPANIES WITH VIRTUALLY NO PANEUROPEAN CAPABILITIES TO SUPPLY THEM FOR EUROPEANS THEMSELVES THE NOTION OF UNIFYING THE COMPUTER MARKET IS PROBABLY EXCEEDED IN DIFFICULTY ONLY BY THE ISSUE OF A COMMON CURRENCY IN JAPAN MANY COMPUTER PRODUCTS ARE INCOMPATIBLE WITH THOSE OF THE LARGEST SINGLE MARKET THE US THIS HAS SIGNIFICANTLY SLOWED THEIR PENETRATION IN THIS COUNTRY IN THE MID1980S PEOPLE LIKE ME WERE FEARING THAT JAPANESE COMPANIES WOULD TAKE OVER THE US PC MARKET IN NO TIME TODAY I FIND THEM A SURPRISINGLY INEFFECTIVE FORCE IN THIS MARKET MEANWHILE THE ASIAPACIFIC REGION ESPECIALLY TAIWAN HAS BECOME A MAJOR SUPPLIER OF PC SUBSYSTEMS ASIAPACIFIC COMPANIES SOMEHOW MANAGE TO SUPPLY PCS CHEAPER THAN MOST OTHERS DESPITE LABOR THEIR ONLY APPARENT ADVANTAGE BEING ONLY A SMALL PART OF THE COST OF A SYSTEM AS A RESULT THE REGION CAME FROM NOWHERE AND SURPASSED JAPAN AS A PRODUCER OF COMPUTERS FOR EXPORT THIS FURTHER COMPLICATES AN ALREADY COMPLEX GLOBAL TRANSITION A FINAL OBSTACLE THAT STANDS IN THE WAY OF THIS TRANSITION IS THE ECONOMIC BARRIER FACING THE CUSTOMER AS YOU INSTALL THE NEW SYSTEM WHICH PROMISES TO BE CHEAPER YOU FACE DELAYS DUE TO TECHNICAL DIFFICULTIES SO YOU END UP MAINTAINING THE OLD SYSTEM LONGER THE FINAL RESULT IS A HUGE HUMP OF INFORMATION SYSTEM COSTSTHE OLD AND THE NEW ADDED TOGETHER SOMEONE LIKE ME LOOKS AT THAT HUMP AND CHEWS OUT THE MIS MANAGER SAYING YOU SAID PC TECHNOLOGY WOULD BE CHEAPER IN FACT IT IS CHEAPER IN THE LONG RUN YOU WILL REACH THE OTHER SIDE OF THAT MIGRATION HUMP AND COSTS WILL COME DOWN THOSE EVENTUAL SAVINGS ARE WHAT MOTIVATE EVERY COMPANY TACKLING THIS PC MIGRATION BUT IN THE MEANTIME THE TECHNICAL DIFFICULTIES AND THE ECONOMIC IMPLICATIONS MAKE IT PRETTY PAINFUL SO WHAT'S ON THE OTHER SIDE OF THE VALLEY OF DEATH WE'RE BEGINNING TO SEE HINTS OF WHAT LIES AHEAD WHAT PCS WILL OFFER IN THE FUTURE IS NOT JUST PRODUCTIVITY BUT TIMELINESS UNTIL NOW BUSINESS COMPUTING WAS SOMETHING THAT HAPPENED BETWEEN PEOPLE AND MACHINES A WALL STREET TRADER AND A MACHINE AN AIRLINE RESERVATION CLERK AND A MACHINE THE EXCITING NEW APPLICATIONS AREN'T PERSONTOMACHINE THEY'RE PERSONTOPERSON IT'S NO LONGER BUSINESS COMPUTING PER SE BUT BUSINESS COMMUNICATIONS FACILITATED AND IMPROVED BY THE COMPUTER TECHNOLOGY WILL BE POWERFUL ENOUGH TO PERMIT PEOPLE TO COMMUNICATE THROUGH VOICE GESTURES AND VISUAL MEANS THIS REQUIRES A LOT OF COMPUTING POWER BUT AS TECHNOLOGY PRICES COME DOWN IT WILL BECOME AFFORDABLE TO TENS OF MILLIONS OF PC USERS OVER THE NEXT SEVERAL YEARS THE SAME CLIENTSERVER PC INFRASTRUCTURES WE'RE INSTALLING NOW WILL BE UPGRADED TO HOST A WIDE RANGE OF BUSINESS COMMUNICATIONS THEY WILL BE ABLE TO CARRY DATA VOICE AND VIDEO IMAGES THE PC WILL SUBSUME ALL THE OTHER OFFICE GADGETS WE DEPEND ON TODAY FAX MACHINES ELECTRONIC MAIL VOICE MAIL VIDEOCONFERENCING ALL INCORPORATED IN ONE MACHINE IT'S ALREADY ON EVERYONE'S DESK AND IT HAS THE POWER TO DO IT ALL AT VERY LOW COSTS BUT AND IT'S A BIG BUT IF WE ARE TO REALIZE THE BENEFITS THAT WAIT ON THE OTHER SIDE OF THE VALLEY OF DEATH WE MUST FOCUS ON THE COSTS AND METHODS OF INTEGRATING ALL THIS WONDERFUL NEW TECHNOLOGY AS AN EXAMPLE WHEN YOU ORDER A PC FROM A MAILORDER COMPANY THE FIRM WILL CUSTOMIZE IT FOR YOU BY INTEGRATING ALL THE SOFTWARE AND ACCESSORIES YOU WANT IN ONE PHONE CALL AND THE FINISHED PC GETS EXPRESSMAILED THIS IS JUST THE BEGINNING ONCE THE PCS ARE PUT TOGETHER THEY THEN HAVE TO BE GLUED INTO FUNCTIONING NETWORKS OF PCS THEN DIFFERENT NETWORKS HAVE TO BE INTEGRATED WITH ONE ANOTHER EACH STAGE OF THIS PROCESS INVOLVES A LOT OF WORK AND WILL REQUIRE NEW BUSINESSES THAT SPECIALIZE IN NEW FORMS OF SYSTEMS INTEGRATION SIMPLY PUT THE FLIP SIDE OF THE SUPERLOWCOST COMPUTING UNITS DELIVERED BY THE NEW COMPUTING INDUSTRY IS A HUGE INTEGRATION TASK BUT ALSO A TREMENDOUS BUSINESS OPPORTUNITY THE SMART COMPANIES ARE LAYING FOUNDATIONS NOW FOR DOING THIS KIND OF INTEGRATION WORK THERE ARE EXCITING TIMES AHEAD AS THE COMPUTER INDUSTRY CONTINUES TO TRUDGE THROUGH THE VALLEY OF DEATH ON THE OTHER SIDE IS A FAR MORE PRODUCTIVE AND TIMEEFFICIENT ELECTRONIC WORLD WITH REWARDS TO THOSE WHO HELP MAKE IT HAPPEN MR GROVE IS PRESIDENT AND CEO OF INTEL CORP 9301180168 930118 TELECOMMUNICATIONS PHONE SPACE RACE HAS FORTUNE AT STAKE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC'S HUGE IRIDIUM TELEPHONESATELLITE PROJECT REPRESENTS A HIGHSTAKES CRAP SHOOT WITH A CIRCLE OF TOUGH RIVALS THESE NEW SATELLITE SYSTEMS COSTING MANY BILLIONS OF DOLLARS WOULD BEAM SIGNALS TO PEOPLE CARRYING PORTABLE PHONES COMPUTERS AND PAGERS ALMOST ANYWHERE ON EARTH BESIDES MOTOROLA THE GAMBLERS RANGE FROM ENTREPRENEURIAL VENTURES TO SOME OF THE MOST RESPECTED HIGHTECH COMMUNICATIONS PLAYERS SUCH AS TRW INC AND LORAL CORP HOWEVER THEIR SYSTEMS FACE A STIFF RIVALRY FROM FASTGROWING CELLULAR SERVICES AND INTERNATIONAL SATELLITE NETWORKS SUCH AS INMARSAT WHICH ALREADY HANDLES SHIPTOSHORE SERVICES AND GLOBAL TRACKING OF SHIP LOCATIONS MOREOVER THE SATELLITE PLANS LACK COMPLETE FUNDING WHICH ANALYSTS SAY COULD COST A COMBINED 6 BILLION TO 10 BILLION JUST TO GET STARTED MOTOROLA WHICH HAS ALREADY PUMPED 100 MILLION INTO ITS IRIDIUM SATELLITE PROJECT BASED IN CHANDLER ARIZ PUTS THE COST OF ITS SYSTEM AT 337 BILLION BUT THE NEW SATELLITE BOOSTERS SEE ONLY CLEAR SKIES THEY EXPECT EVERYONE FROM RANCHERS TO DESERT NOMADS TO FLOCK TO THEIR TRANSMISSION SERVICES ONE MOTOROLA FLIER SHOWS AN ARTIST'S CONCEPT OF A COMMUNICATIONSSTARVED VILLAGER IN BAGGY TROPICAL FATIGUES AND FLOPPY BRIMMED HAT CALLING FROM A MOTOROLA SATELLITEPHONE KIOSK IN AN ISLAND JUNGLE MOTOROLA MAINTAINS ITS SYSTEM WHICH WOULD BE THE FIRST TO SWITCH CALLS ENTIRELY AMONG SATELLITES WITH NO GROUND STATIONS AS REQUIRED IN OTHER SYSTEMS WILL GENERATE MORE TRANSMISSION POWER THAN COMPETITORS' SYSTEMS PROVIDING FASTER CLEARER RECEPTION AND JUSTIFYING ITS COSTS WE'RE TALKING ABOUT A BUSINESS GENERATING BILLIONS OF DOLLARS IN REVENUE SAYS JOHN F MITCHELL VICE CHAIRMAN AT MOTOROLA DO A SIMPLE INCOME EXTRAPOLATION ADDS EDWARD J NOWACKI A GENERAL MANAGER AT TRW'S SPACE & ELECTRONICS GROUP REDONDO BEACH CALIF WHICH PLANS A 13 BILLION 12SATELLITE SYSTEM CALLED ODYSSEY YOU CONCLUDE THAT EVEN A TINY FRACTION OF THE PEOPLE AROUND THE WORLD WHO CAN AFFORD OUR SERVICES WILL MAKE THEM SUCCESSFUL MR MITCHELL AND OTHER BOOSTERS SAY INVESTORS WANT THE FEDERAL COMMUNICATIONS COMMISSION TO HAND OUT LICENSES BEFORE PLEDGING FUNDS THE AGENCY PLANS TO ASSIGN LICENSES BY THE END OF THE YEAR BUT ANALYSTS SAY SOME INVESTOR RELUCTANCE ALSO STEMS FROM THE HUGE TECHNICAL AND MARKETING RISKS EVEN IF THEIR SYSTEMS WORK MANY WOULD HAVE TO KEEP REPLACING THE LOWFLYING BIRDS WHICH WILL CRASH EVERY FEW YEARS FROM ATMOSPHERIC DRAG THAT SHOULD KEEP CAPITAL COSTS IN A PERMANENTLY HIGH ORBIT AND ASSUMING THE NEW SATELLITE NETWORKS ARE LAUNCHED WITHOUT A HITCH TODAY'S COMPETITION ISN'T A STATIC TARGET SAYS BERGE AYVAZIAN AN ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM THEY'LL ALL BE COMPETING AGAINST EACH OTHER ADDS BARRY GOODSTADT A CONSULTANT AT ARTHUR D LITTLE INC CAMBRIDGE MASS THEY CAN'T ALL MAKE IT IT'S IMPOSSIBLE ANALYSTS SUCH AS MR GOODSTADT ALSO QUESTION WHETHER CUSTOMERS WILL WANT TO PURCHASE SATELLITE PHONES THAT WILL BE MORE EXPENSIVE THAN TODAY'S CELLULAR PHONES LAST WEEKEND FOR EXAMPLE THE CELLULAR ONE SERVICE IN NEW YORK WAS SELLING A NOVATEL POCKET CELLULAR PHONE AND 300 MINUTES OF FREE TALK TIME FOR 99 TO CUSTOMERS WHO SIGNED ON FOR SERVICE SOME CARRIERS HAND OUT PHONES FOR FREE TO STIMULATE DEMAND COMPARE THAT WITH A 2500 IRIDIUM PHONE WHICH WILL COST 3 A MINUTE TO USE CURRENT CELLULAR CHARGES RANGE FROM 20 CENTS TO 95 CENTS A MINUTE I GIVE THEIR MARKETING PLAN A VISCERAL 1 IN 10 CHANCE OF SUCCESS SAYS HERSCHEL SHOSTECK A CELLULAR INDUSTRY ANALYST BASED IN SILVER SPRING MD SOME ANALYSTS ALSO THINK CONSUMERS WILL BE TURNED OFF BY THE SIZE OF THE FUTURE SATELLITE PHONES WHICH THEY SAY MAY BE TWICE AS HEAVY AS TODAY'S CELLULAR MODELS TO HANDLE THE EXTRA SATELLITE TRANSMISSION MOTOROLA SAYS IT IS TRYING TO SHRINK ITS PHONE SO THAT IT WILL BE COMPETITIVE WITH CELLULAR PHONES AND IT IS WORKING HARD TO REPLACE THE ELECTRONIC PARTS IN THE PHONE WITH A SINGLE COMPUTER CHIP IRIDIUM DRAWING ITS NAME FROM THE 77TH ELEMENT ON THE PERIODIC TABLE FOR ITS PLANNED 77 SATELLITES HAS SINCE CUT BACK TO 66 SATELLITES A SPOKESMAN SAYS MOTOROLA WON'T RENAME THE PROJECT DYSPROSIUM FOR THE 66TH ELEMENT SO FAR MOTOROLA BASED IN SCHAUMBURG ILL HAS SPENT 100 MILLION ON THE PROJECT AND A THAI COMPANY UNITED COMMUNICATIONS CO HAS AGREED TO PUT IN 80 MILLION FOR A 5 STAKE DDI CORP A JAPANESE LONGDISTANCE CARRIER IS MULLING A STAKE A DDI SPOKESMAN SAYS DOES MOTOROLA HAVE THE MONEY TO FLY ITS BIRDS A SPOKESMAN WILL ONLY SAY WE HAVE NONBINDING LETTERS OF INTENT AND SUBSTANTIAL AGREEMENTS SUFFICIENT TO PROCEED WITH THE INITIAL ROUND OF FINANCING BUT HE WON'T CONFIRM ANY OF THE RUMORED PARTICIPANTS IN THE 14 BILLION FINANCING NOT EVEN THE THAI COMPANY WHICH TOLD AN ASIAN DAILY NEWSPAPER THAT IT WOULD HELP FUND IRIDIUM MR MITCHELL SAYS THAT IF JUST 1 TO 15 OF THE EXPECTED 100 MILLION CELLULAR USERS IN THE YEAR 2000 BECOME REGULAR USERS AT 3 A MINUTE IRIDIUM WILL BREAK EVEN HOW DOES HE KNOW THIS MARKETING STUDIES WHICH HE WON'T SHARE TRW'S MR NOWACKI SAYS ODYSSEY WILL BLANKET THE EARTH WITH TWOWAY VOICE COMMUNICATION SERVICE PRICED AT ONLY A SLIGHT PREMIUM TO CELLULAR WITH TWO MILLION SUBSCRIBERS WE CAN GET A SUBSTANTIAL RETURN ON OUR INVESTMENT HE SAYS LORAL QUALCOMM SATELLITE SERVICES INC AIMS TO BE THE FRIENDLY SATELLITE BY LETTING PHONECOMPANY PARTNERS USE AND RUN ITS SYSTEM'S GROUND STATIONS SAYS EXECUTIVE VICE PRESIDENT ANTHONY NAVARRA BY THE YEAR 2000 THERE WILL STILL BE 15 MILLION UNSERVED CELLULAR CUSTOMERS IN THE WORLD HE SAYS NOT IF CELLULAR CAN HELP IT ALREADY EACH OF THE 734 US CELLULAR MARKETS ESTABLISHED BY THE FCC HAS AT LEAST ONE CELLULAR SYSTEM THAT INCLUDES DEATH VALLEY CALIF AND THE BADLANDS OF SOUTH DAKOTA AND SOME MAJOR CELLULAR PLAYERS ARE PLANNING THEIR OWN SATELLITE SYSTEM AMERICAN MOBILE SATELLITE CORP WASHINGTON DC HAS A LICENSE FROM THE FCC AND IS 32 OWNED BY THE ONLY NATIONAL US CARRIER MCCAW CELLULAR COMMUNICATIONS INC WHICH HAS AGREED TO BECOME AN AT&T AFFILIATE OTHER PARTNERS INCLUDE HUGHES COMMUNICATIONS INC A UNIT OF GENERAL MOTORS CO 29 AND PAGING SERVICES GIANT MTEL CORP JACKSON MISS 29 AMERICAN MOBILE PLANS TO LINK UP WITH INTERNATIONAL SATELLITE NETWORKS AND HAS RAISED 346 MILLION OF A NEEDED 500 MILLION TO LAUNCH ITS FIRST SATELLITE IN 1994 WE'RE ALREADY A FULL TWO TO THREE YEARS INTO THE CONSTRUCTION PROCESS SAYS BRIAN PEMBERTON CHIEF EXECUTIVE OFFICER BUT MR MITCHELL SAYS THE SAME CANDO ATTITUDE THAT HELPED MOTOROLA PUT TOGETHER TWOWAY RADIOS 39 YEARS AGO WILL CARRY IRIDIUM ALOFT IT'S NOTHING BUT AN EXTENSION OF THINGS WE ALREADY KNOW HOW TO DO INDEED ACCORDING TO BARY BERTIGER VICE PRESIDENT AND GENERAL MANAGER OF MOTOROLA SATELLITE COMMUNICATIONS IRIDIUM STARTED AS AN AFTERHOURS EXERCISE AMONG MEMBERS OF HIS GROUP THAT DREW PARTLY ON THEIR WORK ENABLING ASTRONAUTS TO BEAM BACK VIDEO AND AUDIO COMMUNICATIONS FROM MOON MISSIONS THE US SPACE PROGRAM'S 1960S AURA STILL PERMEATES IRIDIUM'S LAB IN CHANDLER WITH A LOT OF WHITE SHIRTS SOLID COLOR TIES AND SHORT HAIRCUTS SPORTED BY ITS ENGINEERS OTHER MOTOROLANS THINK OF IRIDIUM WORKERS AS THE WILDEYED GUYS IN ARIZONA MR BERTIGER SAYS KEN YAMADA CONTRIBUTED TO THIS ARTICLE COMPANIES ARE SCRAMBLING TO LAUNCH SPACEBASED MOBILE SERVICES BUT ESTABLISHED RIVALS AND SCARCE FUND COULD GROUND SOME PLAYERS 9301180167 930118 WHO'S NEWS JC PENNEY CO JC PENNEY CO PLANO TEXAS WILLIAM J ALCORN 44YEAROLD ASSISTANT CONTROLLER GENERAL ACCOUNTING OF THIS RETAILER WAS ELECTED VICE PRESIDENT AND DIRECTOR OF CREDIT FILLING A VACANCY 9301180166 930118 UNITED PARCEL AWARDS BOEING 24 BILLION JOB CONCERN PLACES ORDER FOR 30 767 FREIGHT JETLINERS MCDONNELL IS HIT HARD BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO NAILED DOWN A MAJOR ORDER FROM UNITED PARCEL SERVICE FOR 30 NEWLY DEVELOPED 767 FREIGHT JETLINERS IN A DEAL VALUED AT ABOUT 24 BILLION THE ORDER WHICH DEALT A HARD BLOW TO RIVAL MCDONNELL DOUGLAS CORP'S LANGUISHING MD11 PLANE ALSO INCLUDES PURCHASE OPTIONS FOR AN ADDITIONAL 30 AIRCRAFT ORDERS OF THAT SIZE ARE INCREASINGLY RARE IN THE HARDHIT US AIRCRAFT INDUSTRY WHICH IS MAKING LARGESCALE DELIVERY DEFERRALS RATHER THAN NEW PURCHASES AND THE PROSPERING ATLANTABASED UNITED PARCEL SERVICE REPRESENTED AN ESPECIALLY RIPE OPPORTUNITY FOR JETPLANE MAKERS BECAUSE THE CARRIER DIDN'T NEED THE EXTRAORDINARY FINANCING MANY PASSENGER AIRLINES REQUIRE THESE DAYS WITH THE ORDER SEATTLEBASED BOEING WILL GEAR UP TO DELIVER THE JETS BEGINNING IN OCTOBER 1995 THE AIRCRAFT WHICH CAN HAUL 56 TONS OF PACKAGES 3000 NAUTICAL MILES WITHOUT REFUELLING WILL JOIN UPS'S FLEET OF OLDER 727100 BOEING JETS AND MCDONNELL DOUGLAS DC8 PLANES PLUS 30 NEWER MODEL 757 AIRPLANES COMMON COCKPITS IN THE 757 AND 767 ARE EXPECTED TO OFFER SOME OPERATIONS AND CREWTRAINING SAVINGS FOR THE CARRIER DICK OEHME UPS AIRLINES PRESIDENT SAID THE 767 IS THE RIGHT AIRCRAFT THAT MIXES WITH OUR FLEET FOR THE LONG TERM BUT IN CUTTING ITS NEW DEAL WITH UPS BOEING HAS BITTEN OFF SOME ADDED EXPENSE AS WELL THE 767 FREIGHTER IS A NEW ALLCARGO DERIVATIVE OF THE COMPANY'S 767300 AIRLINER WHICH MEANS THE MANUFACTURER WILL HAVE TO SHELL OUT DEVELOPMENT FUNDS THAT REASONABLY COULD TOP 250 MILLION AS DERIVATIVES GO IT IS AN UPPERMIDDLELEVEL COMMITMENT FOR US SAID JAMES JOHNSON VICE PRESIDENT AND GENERAL MANAGER OF BOEING'S SPRAWLING WIDEBODY AIRCRAFT PLANT AT EVERETT WASH JUST NORTH OF SEATTLE MR JOHNSON WOULDN'T CONFIRM THE AMOUNT OF INVESTMENT NEEDED BUT SAID IT IS A SIGNIFICANT AMOUNT OF MONEY HOWEVER THE EVERETT FACILITY WHICH ALSO MAKES HIGHLY PROFITABLE 747 JUMBO JETS HAS COME UNDER INCREASING PRESSURE FOR PRODUCTIONRATE CUTS AS PRIME CUSTOMERS SUCH AS JAPAN AIR LINES DELTA AIR LINES AND AND UAL CORP'S UNITED AIRLINES CONTINUE TO DELAY FUTURE DELIVERIES BOEING HAD ANNOUNCED PLANS TO CUT PRODUCTION OF 767S AT EVERETT TO FOUR FROM FIVE MONTHLY NEXT NOVEMBER WITH THE COMMERCIAL AIRCRAFT INDUSTRY AT THE BOTTOM OF ITS PRODUCTION CYCLE SUGGESTS ANALYST WOLFGANG DEMISCH OF UBS SECURITIES BOEING APPEARS TO HAVE ELECTED TO TAKE THE WORK AT LESS THAN NORMAL RETURNS TO KEEP THE WORK FORCE STABLE FOR MCDONNELL DOUGLAS'S COMMERCIAL AIRCRAFT DIVISION BASED IN LONG BEACH CALIF THE PAST FEW YEARS HAVE BROUGHT 22000 JOB CUTS AS THE WORLD'S THIRDLARGEST PRODUCER BEARS THE BRUNT OF THE MARKET DOWNTURN NET ORDERS FOR ITS FLAGSHIP MD11 ARE EXPECTED TO HAVE INCREASED BY NO MORE THAN ONE OR TWO AIRCRAFT FOR 1992 WHEN OFFICIAL TALLIES ARE RELEASED THE WORLD'S SECONDLARGEST MAKER OF AIRLINERS EUROPE'S AIRBUS INDUSTRIE CONSORTIUM FADED FROM THE CONTEST FOR UPS'S FAVOR IN RECENT MONTHS BUT MANAGERS AT ST LOUISBASED MCDONNELL DOUGLAS HAD HIGH HOPES THAT THE MD11 AIRCRAFT WHICH IS LARGER THAN THE 767 WOULD PREVAIL THEY WANTED SOMETHING SMALLER SAID A DOUGLAS AIRCRAFT SPOKESWOMAN DESPITE THE OUTCOME AND THE STRUGGLING STATE OF MD11 ORDERS COMPANY MANAGERS NONETHELESS REMAIN HOPEFUL OF PLACING THEIR AIRCRAFT AT UPS IN THE FUTURE 9301180164 930118 US STEEL IMPORTS ROSE 16 IN NOVEMBER FROM OCTOBER LEVEL WASHINGTON US STEEL IMPORTS IN NOVEMBER ROSE 16 FROM OCTOBER AND WERE UP 14 FROM A YEAR EARLIER NOVEMBER IMPORTS TOTALED 1614000 TONS UP FROM 1386000 TONS IN OCTOBER AND UP FROM 1416000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS IMPORT PENETRATION IN NOVEMBER WAS 208 OF THE MARKET COMPARED WITH 17 IN OCTOBER AND 191 IN NOVEMBER 1991 FOR THE FIRST 11 MONTHS OF THE YEAR IMPORTS TOTALED 15710000 TONS UP 82 FROM 14520000 TONS A YEAR EARLIER STEEL EXPORTS IN NOVEMBER TOTALING 355000 TONS ROSE 41 FROM OCTOBER EXPORTS OF 341000 TONS HOWEVER NOVEMBER EXPORTS WERE DOWN 17 FROM 427000 TONS A YEAR EARLIER THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL SAID EXPORTS DECREASED 33 IN THE FIRST 11 MONTHS OF 1992 TO 3939000 TONS FROM 5899000 TONS A YEAR EARLIER 9301180163 930118 DIVIDEND NEWS S&K FAMOUS BRANDS INC S&K FAMOUS BRANDS INC DECLARED A 2FOR1 STOCK SPLIT TO BE DISTRIBUTED FEB 12 TO SHARES OF RECORD JAN 29 AS OF OCT 24 1992 THE 128STORE MENSWEAR RETAILER IN RICHMOND VA HAD 2381217 SHARES OUTSTANDING 9301180162 930118 ENTERPRISE CARTOONIST CREATES INTERNATIONAL MARKET FOR HIS WORK PICTURE THIS COMFORTABLE LIFE ON REVENUE TOPPING 500000 FOR THE YEAR BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL GREENWICH CONN POLITICAL CARTOONIST RANAN R LURIE WHO WAS BORN IN EGYPT AND GREW UP IN ISRAEL NOW DWELLS AMID THE SUPERRICH IN THIS PROSPEROUS NEW YORK SUBURB GREETING A VISITOR TO HIS LARGE AND LUXURIOUS HOME ON A WOODED FOURACRE PLOT THE 60YEAROLD GESTURES BROADLY AND DECLARES ALL THIS WAS BUILT ONLY FROM CARTOONS NO STOCK MARKET NO SPECULATIONS NO NOTHING WHEN IN MANHATTAN MR LURIE STAYS AT HIS PIEDATERRE IN THE OPULENT TRUMP TOWER SOME PEOPLE MIGHT WONDER HOW A POLITICAL CARTOONIST CAN SUPPORT SUCH AN EXTRAVAGANT LIFESTYLE MR LURIE'S ANSWER HE HAS MULTIPLIED HIS INCOME BY ACTING AS AN ENTREPRENEUR IN A STRATEGY THAT HE SAYS OTHER CREATIVE PEOPLE COULD ADOPT TO THEIR PROFIT HE HAS ESSENTIALLY TURNED HIS TALENT INTO A BUSINESS WITH WORLDWIDE SCOPE FOR YEARS MR LURIE LET OTHERS MARKET HIS WORK AND SHARE THE PROFITS LIKE MANY OTHER CARTOONISTS HE USED ONE NEWSPAPER OR MAGAZINE AS HIS BASE SYNDICATORS SOLD HIS WORK TO OTHER PUBLICATIONS BUT HE BROKE THE PATTERN SEVEN YEARS AGO BY FORMING HIS OWN COMPANY CARTOONEWS INTERNATIONAL INC WHICH HE SAYS HAS FIVE EMPLOYEES SINCE THEN HE HAS DISPLAYED A PASSION FOR BUSINESS AS WELL AS FOR POLITICAL STATEMENT THE RESULT MR LURIE SAYS HIS CARTOON REVENUE EXCEEDED 500000 LAST YEAR MORE THAN FOUR TIMES AS MUCH AS HE EVER TOOK IN BEFORE FORMING THE COMPANY EVEN AFTER BUSINESS EXPENSES HIS INCOME HAS SURGED HE SAYS HIS ACCOUNTANT JOHN SCHMITT IN NEW YORK SAYS MR LURIE'S BUSINESS HAS BEEN STEADILY GROWING ONLY LAST MONTH ITARTASS NEWS AGENCY AGREED TO MARKET MR LURIE'S WORK IN THE FORMER SOVIET STATES THOUGH THE AGENCY SAYS IT DOESN'T YET KNOW HOW MANY OF ITS CLIENTS WILL PAY FOR THE CARTOONS WITH HIS SHARP EYE AND KEEN SENSE OF HUMOR HE'LL RIDICULE AND CASTIGATE WHOEVER AND WHATEVER DESERVE RIDICULING AND CASTIGATING YURI ROMANTSOV A TASS OFFICIAL SAID IN ANNOUNCING THE DEAL A MASTER CARICATURIST MR LURIE ONCE PORTRAYED IDI AMIN THEN UGANDA'S DICTATOR AS A VAMPIRE LAST WEEK HE DREW IRAQ'S SADDAM HUSSEIN WITH A RAISED SKELETON HAND AN EMBLEM OF DEATH MR LURIE SAYS HIS WORK NOW IS SENT TO MORE THAN 1000 NEWSPAPERS AND MAGAZINES THROUGHOUT THE WORLD INCLUDING NEARLY 500 REACHED BY ITARTASS TO GAIN CLIENTS MR LURIE BEGAN OFFERING SEVERAL PRODUCT LINES CARICATURES ECONOMIC CARTOONS AND POLITICAL CARTOONS RATHER THAN JUST ONE AND HE BECAME MORE FLEXIBLE ON PRICE THAN HIS SYNDICATORS HAD BEEN ADOPTING A PRACTICE THAT MAKES PURISTS CRINGE HE ALSO LEVERAGED HIS OUTPUT BY HIRING ASSISTANTS TO COMPLETE HIS PARTIALLY FINISHED DRAWINGS AS MR LURIE PUTS IT I'VE CREATED THE 36HOUR WORKDAY HE NOW TURNS OUT 10 PIECES OF WORK WEEKLY ABOUT TWICE AS MANY AS MOST OF HIS RIVALS BUT SOME FIND HIS PRODUCTIVITY LESS THAN IMPRESSIVE OTHER POLITICAL CARTOONISTS WON'T DO THAT BECAUSE IT MAY COMPROMISE THE QUALITY OF THE WORK SAYS JIM MORIN THE MIAMI HERALD'S POLITICAL CARTOONIST MR LURIE THOUGH INSISTS THAT HIS WORK HAS GOTTEN BETTER IN PART BECAUSE HE CAN FOCUS ON IDEAS WHILE ASSISTANTS SEE TO MUNDANE DETAILS SOME SAY MR LURIE AS A COMMENTATOR IS NO PAT OLIPHANT OR JEFF MACNELLY CARTOONISTS WHOSE ORIGINALITY AND BITE CONSISTENTLY AWE THEIR PEERS MR LURIE'S RECORD DISPLAYS A GOOD DEAL OF BOTH THOUGH AND AS A DEFT INTERNATIONAL MARKETER HE STANDS ALONE IN HIS TRADE OTHERS IN THE FIELD SAY A TIRELESS PROMOTER MR LURIE SAYS HE INTERRUPTED A CARIBBEAN VACATION RECENTLY TO DROP IN ON POTENTIAL CLIENTS HE NAILED DOWN THREE INCLUDING A TINY GRENADA NEWSPAPER CALLED THE VOICE IT WILL PAY ONLY 15 A MONTH HE SAYS BUT HIS WORK WILL REACH YET ANOTHER MARKET ONCE READERS ARE HOOKED HE SAYS HE MIGHT RAISE THE RATES LATER RANAN LURIE IS THE ONLY CARTOONIST WHO COMES DOWN TO FLORIDA AND TAKES MY EDITOR OUT TO DINNER SAYS THE MIAMI HERALD'S MR MORIN KEVIN KALLAUGHER OF THE BALTIMORE SUN WHO IS PRESIDENTELECT OF THE ASSOCIATION OF AMERICAN EDITORIAL CARTOONISTS SAYS MR LURIE HAS DONE A WONDERFUL JOB GETTING HIS CARTOONS SEEN AND PLACED HE HAS TERRIFIC POWERS OF PERSUASION A MAN OF MANY INTERESTS MR LURIE COMPLAINS THAT MOST PEOPLE EXERCISE NO MORE CREATIVITY THAN ANNIE HIS GERMAN SHEPHERD TO DISTINGUISH HIMSELF FROM SUCH BEASTS MR LURIE PRODUCES FINE ART INCLUDING PORTRAITS WRITES UP INTERVIEWS WITH WORLD LEADERS FOR SYNDICATION TWO OR THREE TIMES A YEAR AND IS EVEN TRYING TO SELL A SWEDISH AUTO COMPANY HIS IDEA FOR A NEW TYPE OF AUTOMOBILE TAILLIGHT AND THERE IS THE CARTOONING OF COURSE MR LURIE BEGAN DRAWING AS A CHILD IN WHAT IS NOW ISRAEL BY AGE 19 HE HAD A BOOK OF CARTOONS PUBLISHED THERE THE FIRST OF 10 BOOKS SO FAR HE BECAME A JOURNALIST IN ISRAEL BUT AFTER FIGHTING IN THE SIX DAY WAR IN 1967 HE EMBARKED ON AN INTERNATIONAL CARTOONING CAREER AFTER WORKING FOR LIFE AND NEWSWEEK MAGAZINES IN THE US HE POPPED AROUND THE GLOBE'S POWER CENTERS DOING NEWSPAPER STINTS AT DIE WELT IN BONN THE TIMES IN LONDON AND ASAHI SHIMBUN IN TOKYO MEANWHILE MR LURIE'S WORK WAS WIDELY SYNDICATED BUT IN A STEP THAT HIS WIFE TAMAR CALLS THE SMARTEST THING HE HAS EVER DONE MR LURIE TOOK OVER THE SYNDICATION WITH HER HELP SOME 15 OF THE CLIENTS DROPPED THE CARTOONS AND SWITCHED TO OTHERS PUSHED BY ESTABLISHED SYNDICATES MR LURIE SAYS BUT BEFORE LONG HE MORE THAN MADE UP FOR THE LOSS IN ONE EARLY MOVE HE SAYS HE SPENT 20000 TO PROMOTE HIS WORK THROUGH MAILINGS OF A COLORFUL BROCHURE NO SYNDICATOR HAD BEEN WILLING TO SPEND MORE THAN 3000 AT A TIME HE SAYS THAT BROCHURE ATTRACTED ANNUAL INCOME OF MORE THAN 110000 INSTANTLY HE ADDS IN ESCAPING SYNDICATORS MR LURIE ALSO ESCAPED OBLIGATIONS TO A PUBLICATION BASE HE SAYS MOST EDITORIAL CARTOONISTS MUST DEVOTE A PORTION OF THEIR WORK TO LOCAL OR REGIONAL CONCERNS SUCH CARTOONS FIND NO GLOBAL MARKET BUT MR LURIE PICKS ONLY TOPICS HE DEEMS OF UNIVERSAL INTEREST INCREASINGLY INFORMED PEOPLE THROUGHOUT THE WORLD HAVE THE SAME CONCERNS AND MUCH OF THE SAME INFORMATION HE SAYS I'M AMAZED THAT OTHER CARTOONISTS HAVEN'T SPECIALIZED IN MY FIELD HE SAYS OF HIS EMPHASIS ON INTERNATIONAL SUBJECTS THEY HAVE MISSED THE BIGGEST MARKET IN THE WORLD BESIDES HIS CARTOONS FOR PRINT MR LURIE SOMETIMES HAS PRODUCED POLITICAL CARTOONS FOR TELEVISION AND AIMS TO RESUME DOING SO THIS YEAR HE SAYS HIS COMPANY EVENTUALLY MIGHT SYNDICATE OTHER WORK BESIDES HIS OWN HE SAYS THE CORPORATION THAT I'VE BUILT HERE IS LIKE A WOMB READY TO ACCEPT NEW ENTERPRISES 9301180161 930118 LIGHTENING POSTAL TRUCKS' LOADS WOULD BE ANOTHER WAY TO SAVE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL IN THE TIME IT TAKES TO READ THIS ARTICLE THE US WILL SQUANDER NEARLY 1 MILLION IN TRAFFIC JAMS SO SAYS LAWRENCE SWANSON A 57YEAROLD SYSTEMS ANALYST IN SAGINAW MICH FOR 16 YEARS MR SWANSON HAS PEDDLED A TRAFFICJAM REMEDY TO ANYONE WHO WILL LISTEN AND MANY WHO WON'T HE SAYS THAT IF HIGHWAY DRIVERS WOULD KEEP A CONSTANT DISTANCE BETWEEN CARS THEY WOULD SAVE A HALFBILLION DOLLARS A DAY IN FUEL AND OTHER COSTS BY REDUCING THE AMOUNT OF SPEEDING UP AND SLOWING DOWN THEY DO TO PROMOTE THIS VERY SIMPLE SOLUTION MR SWANSON HAS WRITTEN MORE THAN 3000 LETTERS SINCE 1977 TO PRESIDENTS CARTER AND BUSH HE HIT A LULL IN THE REAGAN YEARS AND PRESIDENTELECT CLINTON MEMBERS OF CONGRESS AND THE MICHIGAN LEGISLATURE 125 UNIVERSITIES A SLEW OF PUBLICINTEREST GROUPS AND 35 FOREIGN AMBASSADORS THEY'VE GOT TRAFFIC PROBLEMS TOO THE RESPONSE HAS BEEN SPARSE I'VE DRAWN UP A DON'T CARE' LIST OF PEOPLE I'VE WRITTEN TO WHO HAVEN'T EVEN ANSWERED MY LETTERS HE SAYS HE HAS RECEIVED POLITE REJECTIONS FROM TWO CLINTON CABINET NOMINEES COMMERCE SECRETARYDESIGNATE RON BROWN AND TRANSPORTATION SECRETARYDESIGNATE FEDERICO PENA IN A LETTER TO MR SWANSON MR BROWN FORMER CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE SAID THE DEMOCRATIC PARTY HAS CHOSEN NOT TO MAKE THIS ISSUE A PRIORITY MR SWANSON WHO SAYS HE WILL PERSIST IN TRYING TO GET HIS IDEA LISTENED TO IS PARTICULARLY IRKED THAT SOME STATES RATHER THAN ADVOCATING HIS IDEA THROUGH PUBLIC EDUCATION PROMOTE WHAT HE CALLS INCORRECT DRIVING RULES MICHIGAN ADVISES DRIVERS TO WIDEN THE GAP WHEN THEY SPEED UP BUT MR SWANSON SAYS THEY CAN BE SAFE WITHOUT BEING SO INEFFICIENT IT'S A TOUGH SELL GEORGE PARKER AN OFFICIAL AT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAYS MR SWANSON'S IDEA IS JUST NOT PRACTICAL YOU CAN'T TRAIN PEOPLE TO FOLLOW THIS RULE DENNIS ROYER DENVER'S DIRECTOR OF TRANSPORTATION ENGINEERING AND A RECIPIENT OF MR SWANSON'S ENTHUSIASTIC MISSIVES ACKNOWLEDGES THAT WHEN CARS TRAVEL TOO CLOSE TOGETHER CONSTANT ACCELERATION AND DECELERATION CAN CONSUME A GREAT DEAL OF GASOLINE BUT HE ADDS I CAN'T EVEN GET PEOPLE TO ABIDE BY THE SPEED LIMIT MR SWANSON SAYS HE HAS OTHER NOTIONS TO SAVE THE NATION MONEY BUT HE WON'T DIVULGE THEM BECAUSE IT'LL GIVE MORE FODDER TO PEOPLE WHO THINK I'M NUTS 9301180160 930118 WHO'S NEWS RAILAMERICA INC RAILAMERICA INC LAKE RIDGE VA JOHN M SULLIVAN 68 YEARS OLD WAS NAMED A DIRECTOR AT THIS TRANSPORTATION HOLDING COMPANY INCREASING THE BOARD TO FIVE MEMBERS MR SULLIVAN IS RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HAUG DIE CASTING INC KENILWORTH NJ 9301180159 930118 WHO'S NEWS MARGARETTEN FINANCIAL CORP MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ BRUCE SCHNELWAR 51 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AT THIS RESIDENTIAL MORTGAGE BANKING COMPANY MR SCHNELWAR WHO WILL CONTINUE TO SERVE AS CHIEF FINANCIAL OFFICER HAD BEEN A SENIOR VICE PRESIDENT 9301180158 930118 WHO'S NEWS AMES DEPARTMENT STORES INC AMES DEPARTMENT STORES INC ROCKY HILL CONN DENIS J TAURA WAS NAMED A DIRECTOR INCREASING BOARD MEMBERSHIP TO EIGHT MR TAURA 52 YEARS OLD IS CHAIRMAN OF D TAURA & ASSOCIATES A PRINCETON NJ MANAGEMENT AND REORGANIZATION CONSULTING CONCERN FOR THE RETAIL INDUSTRY 9301180157 930118 FIRST CITY BANCORP OF TEXAS ATTRACTS BIDS FROM NEARLY 40 PARTIES FDIC SAYS BY MARTHA BRANNIGAN AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL DEPOSIT INSURANCE CORP SAID IT RECEIVED PROPOSALS FROM NEARLY 40 PARTIES FOR THE ACQUISITION OF ALL OR PART OF THE FAILED FIRST CITY BANCORP OF TEXAS ACCORDING TO AN INDIVIDUAL CLOSE TO THE BIDS ONLY FOUR PROPOSALS WERE SUBMITTED FOR ALL OF FIRST CITY THOSE BIDS WERE SAID TO COME FROM CHEMICAL BANKING CORP NEW YORK NATIONSBANK CORP CHARLOTTE NC FIRST INTERSTATE BANCORP LOS ANGELES AND FROM COMERICA INC DETROIT AND BOATMEN'S BANCSHARES INC ST LOUIS WHICH ARE SAID TO HAVE SUBMITTED A JOINT BID ALL OF THOSE BANKS ALREADY HAVE A PRESENCE IN TEXAS ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE BIDS BANKAMERICA CORP BASED IN SAN FRANCISCO WITHDREW FROM THE BIDDING BANC ONE CORP COLUMBUS OHIO BID ON ONLY SEVERAL UNITS TWO PEOPLE SAID WE CONSIDER IT AN INDICATION OF VERY STRONG INTEREST ALAN WHITNEY THE FDIC'S DIRECTOR OF CORPORATE COMMUNICATIONS SAID OF THE UNUSUALLY LARGE NUMBER OF BIDS HE DECLINED TO IDENTIFY ANY BIDDERS THE FDIC'S DEADLINE FOR BIDDING ON THE REMNANTS OF FIRST CITY WHICH IS BASED IN HOUSTON WAS FRIDAY THE INSTITUTION WAS SEIZED BY FEDERAL REGULATORS LAST YEAR AFTER FAILED EFFORTS TO FIND A MERGER PARTNER OR INVESTOR CHEMICAL BANK AND FIRST INTERSTATE PREVIOUSLY HAVE SAID THEY PLANNED TO BID FOR FIRST CITY NATIONSBANK BOATMEN'S BANKAMERICA AND BANC ONE DECLINED TO COMMENT ON FRIDAY COMERICA COULDN'T BE REACHED FOR COMMENT MR WHITNEY SAID THE AGENCY ACTUALLY RECEIVED MORE THAN 40 BIDS AS SOME OF THE INTERESTED PARTIES SUBMITTED MORE THAN ONE PROPOSALSTRUCTURING THEIR OFFERS IN DIFFERENT WAYS FOR VARIOUS PIECES OF THE FAILED TEXAS BANK THE FDIC EXPECTS TO FINISH REVIEWING THE BIDS AND TO DECIDE ON THE DISPOSITION OF THE BANK'S OPERATIONS BY SOME TIME IN FEBRUARY HE SAID IT'S GOING TO BE A VERY COMPLICATED PROCESS TO EVALUATE ALL THE BIDS MR WHITNEY ADDED STILL WE'RE CONFIDENT WE CAN COMPLETE THE PROCESS AND RETURN THE BANK TO THE PRIVATE SECTOR IN FEBRUARY 9301180156 930118 FINANCING BUSINESS HUDSON FOODS INC HUDSON FOODS INC ROGERS ARK SAID IT PLANS TO REDEEM THE REMAINING 10 MILLION OF ITS 14 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2008 THE POULTRY PROCESSING COMPANY SAID THE REDEMPTION IS SCHEDULED FOR MARCH 15 THE DEBENTURES WILL BE REDEEMED AT 1048 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST DEBENTURES CALLED FOR REDEMPTION MAY BE CONVERTED INTO CLASS A COMMON SHARES OF HUDSON ON OR BEFORE THE REDEMPTION DATE 9301180155 930118 WHO'S NEWS PARACELSIAN INC PARACELSIAN INC ITHACA NY KELVIN W WELBOURNE 43 YEARS OLD VICE PRESIDENT OF OPERATIONS AT THIS BIOTECHNOLOGY COMPANY WAS NAMED TO THE ADDITIONAL POSITIONS OF CHIEF FINANCIAL OFFICER TREASURER AND CORPORATE SECRETARY HE SUCCEEDS JERRY MICKELSON 48 WHO RESIGNED TO PURSUE OTHER INTERESTS 9301180154 930118 BUSINESS BRIEF ZALE'S BANKERS AGREE TO FORGO PAYMENT OF LOAN ACCEPT NOTE DALLAS ZALE CORP SAID ITS BANKERS AGREED TO FORGO A 50 MILLION LOAN PAYMENT AND A SMALL EQUITY STAKE AS PART OF THE COMPANY'S REVISED REORGANIZATION PLAN AGREEING INSTEAD TO ACCEPT A SECURED NOTE FOR THE ENTIRE 60 MILLION THEY ARE OWED BY A ZALE UNIT THE RETAIL JEWELRY CHAIN IN RELEASING DETAILS OF THE COMPROMISE PLAN ANNOUNCED LAST WEEK ALSO SAID THAT CREDITORS OF ITS ZALE CREDIT CORP UNIT THE LAST DEBTHOLDER GROUP TO AGREE TO THE PLAN WILL GET 24 OF THE COMPANY'S EQUITY WHEN ZALE EMERGES FROM BANKRUPTCYCOURT PROCEEDINGS UP FROM 1834 IN THE PLAN ANDREAS LUDWIG CHIEF FINANCIAL OFFICER SAID THAT THE 50 MILLION PREVIOUSLY TICKETED FOR REPAYING A SECURED LOAN TAKEN BY ITS GORDON JEWELRY CORP UNIT WILL NOW BE RETAINED AS WORKING CAPITAL HE ALSO SAID THE COMPANY IS NEGOTIATING WITH SEVERAL BANKS FOR A WORKING CAPITAL LOAN OF 150 MILLION FOR THE COMPANY WHEN IT EMERGES FROM BANKRUPTCYCOURT PROCEEDINGS WHICH HE EXPECTS BY THE END OF JUNE IN THE REVISED REORGANIZATION PLAN THE EQUITY STAKES OF SOME OTHER MAJOR CREDITORS ALSO WERE CHANGED MEMBERS OF THE COMPANY'S BANK LENDING GROUP WILL RECEIVE 1634 OF THE REORGANIZED ZALE UP FROM 1583 IN EXCHANGE FOR THE DEBT THEY ARE OWED BY THE PARENT COMPANY MOST OTHER CREDITORS SACRIFICED SOME OF THE EQUITY THEY WOULD HAVE RECEIVED UNDER THE PLAN TO ACCOMODATE THE INCREASED STAKE PROMISED TO ZALE CREDIT CREDITORS THE NEWLY ISSUED COMMON STOCK WOULD WIPE OUT 16 BILLION OF ZALE DEBT LEAVING THE REORGANIZED COMPANY WITH ONLY 60 MILLION OF INDEBTEDNESS MR LUDWIG SAID THE REORGANIZATION PLAN WOULD ALSO WIPE OUT THE EQUITY INTEREST OF PEOPLES JEWELLERS LTD A TORONTO RETAILING CHAIN AND SWAROVSKI INTERNATIONAL HOLDING AG OF SWITZERLAND THE CURRENT COOWNERS OF ZALE THE NATION'S LARGEST RETAIL JEWELER 9301180153 930118 WHO'S NEWS BALTIMORE GAS & ELECTRIC CO BALTIMORE GAS & ELECTRIC CO BALTIMORE BEVERLY B BYRON 60 YEARS OLD WAS NAMED A DIRECTOR ON THE 15MEMBER BOARD OF THIS MAJOR UTILITY EFFECTIVE FEB 1 MS BYRON WAS A CONGRESSWOMAN REPRESENTING MARYLAND'S SIXTH CONGRESSIONAL DISTRICT FROM 1978 TO 1992 SHE SUCCEEDS KATHLEEN FEELEY 54 WHO RESIGNED FROM THE BOARD IN JULY 1992 9301180152 930118 FINANCING BUSINESS PROPERTY TRUST OF AMERICA PROPERTY TRUST OF AMERICA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 55 MILLION SHARES OF BENEFICIAL INTEREST THE OFFERING VALUED AT ABOUT 83 MILLION WILL BE MANAGED BY GOLDMAN SACHS & CO AG EDWARDS & SONS INC KIDDER PEABODY & CO AND MERRILL LYNCH & CO THE EQUITY REAL ESTATE INVESTMENT TRUST SAID 20 TO 25 OF THE NEW SHARES WILL BE OFFERED TO SECURITY CAPITAL REALTY INVESTORS INC PROPERTY TRUST'S PRINCIPAL SHAREHOLDER 9301180151 930118 FINANCING BUSINESS LONG ISLAND LIGHTING CO LONG ISLAND LIGHTING CO SAID IT WILL REDEEM 35 MILLION PRINCIPAL AMOUNT OF FIRST MORTGAGE BONDS THE 820 SERIES R BONDS ARE DUE 1999 AND WILL BE REDEEMED FOR 10170 OF FACE AMOUNT PLUS ACCRUED INTEREST INTEREST ON THE BONDS WILL CEASE TO ACCRUE ON THE REDEMPTION DATE FEB 16 THE REDEMPTION WILL BE FINANCED FROM THE PROCEEDS OF A 36 MILLION DEBENTURE OFFERING THE HICKSVILLE NY COMPANY MADE THIS MONTH 9301180150 930118 WHO'S NEWS HURCO COS HURCO COS INDIANAPOLIS ROGER J WOLF 52YEAROLD FORMER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF GAINESWAY MANAGEMENT CORP WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF COMPUTER NUMERICAL CONTROL SYSTEMS FOR MACHINE TOOLS SUCCEEDING MICHAEL K CAMPBELL 41 WHO RESIGNED 9301180149 930118 PHILIPPINE OILS DRAW ATTENTION IN STOCK MARKET STEADY OUTPUT AT NATION'S FIRST BIG OFFSHORE FIELD IS STIRRING FRESH INTEREST BY LAWRENCE MACDONALD STAFF REPORTER OF THE WALL STREET JOURNAL PHILIPPINE OIL STOCKS LONG SCORNED AS TOO SPECULATIVE FOR ANYBODY BUT KNAVES GAMBLERS AND FOOLS ARE ATTRACTING FRESH INTEREST THANKS TO THE STEADY PRODUCTION AT THE PHILIPPINES' FIRST MAJOR OFFSHORE FIELD DISCOVERED IN 1990 ABOUT 250 MILES SOUTHWEST OF MANILA AND BROUGHT INTO PRODUCTION LAST MAY THE FIELD KNOWN AS WEST LINAPACANA HAS ESTIMATED RECOVERABLE RESERVES OF 109 MILLION BARRELS ENOUGH TO QUALIFY AS AN INDUSTRY ELEPHANT A POTENTIALLY MUCH LARGER FIND THE MALAMPAYA FIELD WITH ESTIMATED RESERVES OF BETWEEN 70 MILLION AND 300 MILLION BARRELS HAS RAISED HOPES THAT THE PHILIPPINES MIGHT EVENTUALLY BECOME A NET OIL EXPORTER LIKE NEIGHBORING INDONESIA MALAYSIA AND BRUNEI THERE IS RISING CONFIDENCE IN THE COUNTRY THAT SELFSUFFICIENCY IN OIL AND GAS WILL BE ACHIEVED BY THE TURN OF THE CENTURY SAYS CONRAD ANDRES VICE PRESIDENT FOR RESEARCH AT PHILIPPINE ASIA EQUITIES SECURITIES INC BETWEEN NOW AND THEN I FORESEE A FLURRY OF OIL EXPLORATION ACTIVITIES SUCH HOPES HAVE LIFTED THE OIL INDEX WHICH INCLUDES 12 COMPANIES WITH STAKES IN OFFSHORE OIL VENTURES BY NEARLY 70 IN THE PAST YEAR SEVEN OF THE COMPANIES HAVE MINORITY STAKES IN WEST LINAPACANA WHILE THE REST HAVE STAKES IN OTHER EXPLORATION CONTRACTS MR ANDRES BELIEVES THAT PRICES WILL CONTINUE TO RISE DESPITE LAST YEAR'S STEEP RUNUP AND A STELLAR PERFORMANCE LAST WEEK WHICH CARRIED THE OIL INDEX TO RECORD HIGHS THERE IS NOW AN OPENING FOR LONGTERM INSTITUTIONAL PLAY IN OILS HE SAYS INVESTORS WHO BUY NOW AND HOLD UNTIL 1995 WILL BE RICHLY REWARDED PHILIPPINE OIL STOCKS AREN'T FOR THE FAINTHEARTED IN 1979 SHARES IN SOME COMPANIES ROCKETED 4000 IN ONE WEEK ON EXAGGERATED REPORTS OF A MINOR DISCOVERY ONLY TO COLLAPSE THE NEXT SO MANY PEOPLE MADE SO MUCH MONEY MARVELS FRANZ BONOAN AN OIL STOCK ANALYST AT PRYCE SECURITIES PHILIPPINES INC OTHERS LOST THEIR SHIRTS OF COURSE MR BONOAN AND OTHER MANILABASED ANALYSTS SAID THE DAYS OF SUCH VIOLENT FLUCTUATIONS ARE GONE COMPANIES WITH A STAKE IN WEST LINAPACAN WHICH IS PRODUCING ABOUT 14000 BARRELS A DAY WORTH ABOUT 238000 AT CURRENT PRICES HAVE SOUND FUNDAMENTALS AND RECURRING INCOME HE SAYS EVEN SO OIL STOCKS REMAIN POTENTIALLY VOLATILE IN PART BECAUSE THE SECTOR'S CAPITALIZATION IS A TINY 167 BILLION PESOS 682 MILLION ONLY 5 OF THE ANEMIC PHILIPPINE MARKET'S TOTAL CAPITALIZATION NEW DISCOVERIES ARE NEEDED JUST TO JUSTIFY CURRENT PRICES SHARES OF THE WEST LINAPACAN PARTICIPANTS COST ON AVERAGE 57 MORE THAN THE NET ASSET VALUE OF THE FIELD'S RESERVES NOT SURPRISINGLY MANY FOREIGN INVESTORS REMAIN SKEPTICAL PHILIP BALLIEU A BROKER AT BARING SECURITIES HONG KONG LTD WHO SELLS PHILIPPINE STOCKS TO FUND MANAGERS AND OTHER NONPHILIPPINE CLIENTS SAYS HE HEARS FEW INQUIRIES ABOUT PHILIPPINE OILS AND THAT HE ADVISES INTERESTED CLIENTS TO PROCEED WITH CAUTION ESPECIALLY AT THIS TIME OF YEAR I TELL THEM THAT THESE STOCKS ARE CYCLICAL HE SAYS HISTORICALLY PHILIPPINE OIL SHARES RISE FROM THE THIRD QUARTER OF EACH YEAR UNTIL LATE JANUARY IN ANTICIPATION OF DRILLING RESULTS THAT BECOME AVAILABLE IN FEBRUARY OR MARCH THEN TYPHOONS BEGIN DRILLING STOPS AND THE SHARES COLLAPSE UNTIL THE NEXT ROUND OF EXPLORATION AND SPECULATION THINGS HAVE CHANGED DRASTICALLY SAYS MARIA LOURDES SISON VICE PRESIDENT FOR RETAIL SALES AT SUN HUNG KAI SECURITIES PHILIPPINES INC A YEAR AGO THE OILS WERE PERCEIVED AS SPECULATIVE STOCKS AND EVEN DOMESTIC INSTITUTIONS REFUSED TO TOUCH THEM SHE SAYS SINCE WEST LINAPACAN BEGAN PRODUCTION PHILIPPINE BANKS INSURANCE COMPANIES AND TRUST FUNDS HAVE BEEN ACCUMULATING OIL SHARES OUR DOMESTIC CLIENTS ARE IN ALREADY AND THEY ARE STILL BUYING MORE SHE SAYS THE LIKELIHOOD THAT SHARES WILL DROP SHORTLY ON PROFITTAKING DOESN'T DULL HER ENTHUSIASM THE BIGGER THE DROP THE BIGGER THE OPPORTUNITY BUY ON WEAKNESS SHE SAYS FOR FOREIGNERS WHO DECIDE TO TAKE THE PLUNGE CHOOSING AMONG THE PHILIPPINE OIL COMPANIES CAN BE A DAUNTING TASK MOST ARE RUN BY STOCKBROKERS RATHER THAN OIL MEN AND SEVERAL HAVE INTERESTS BESIDES OIL EXPLORATION AND DEVELOPMENT ORIENTAL PETROLEUM WHICH HOLDS 366 OF WEST LINAPACAN THE LARGEST STAKE HELD BY A LISTED PHILIPPINE COMPANY IS MANAGED BY ROBERT COYIUTO CHAIRMAN OF THE COMPANY AND THE MANILA STOCK EXCHANGE MR COYIUTO WHO OWNS ABOUT 8 OF ORIENTAL BUT CONTROLS THE BOARD THROUGH PROXIES HAS BEEN ENGAGED IN AN OWNERSHIP TUSSLE WITH THE PHILIPPINE COMMISSION ON GOOD GOVERNMENT A GOVERNMENT BODY THAT HOLDS 35 OF THE COMPANY AND HAS ALLEGED THAT MR COYIUTO'S CONTROL OF THE BOARD IS ILLEGAL IN ADDITION THE SECURITIES AND EXCHANGE COMMISSION HAS QUESTIONED ORIENTAL ABOUT A FAILED TAKEOVER BID FOR ANOTHER OIL COMPANY MANILA ANALYSTS TEND TO PREFER COMPANIES THAT HAVE SMALLER STAKES IN WEST LINAPACAN BUT ARE UNENCUMBERED BY SUCH DISPUTES FAVORITES INCLUDE BASIC PETROLEUM & MINERALS WHICH RECENTLY INCREASED ITS STAKE IN WEST LINAPACAN TO 11 FROM 7 AND PETROFIELDS EXPLORATION & DEVELOPMENT CO WHICH HAS 4 OF WEST LINAPACAN AND STANDS OUT AMONG PHILIPPINE OIL COMPANIES FOR THE QUALITY OF ITS TECHNICAL STAFF THE MARKET IS AWAITING NEWS FROM THREE FIELDS THE RESULTS OF SEISMIC SURVEYS OF OCTON A RELATIVELY MINOR FIELD WITH 10 MILLION TO 30 MILLION BARRELS ARE EXPECTED NEXT MONTH AND WILL BE ANALYZED CLOSELY AS ALL 12 LISTED OIL COMPANIES BELONG TO THE OCTON CONSORTIUM MALAMPAYA IS OWNED BY A SUBSIDIARY OF THE ROYAL DUTCH/SHELL GROUP AND OCCIDENTAL PETROLEUM CORP NEITHER OF WHICH IS TRADED LOCALLY YET ITS SHEER SIZE AND THE FACT THAT LISTED COMPANIES HOLD NEARBY CONCESSIONS MEAN THAT THE RESULTS OF DRILLING NOW UNDER WAY ARE SURE TO MOVE THE MARKET FINALLY DRILLING WILL BEGIN LATER THIS MONTH AT WEST LINAPACANB WHICH HOLDS AN ESTIMATED 50 MILLION TO 70 MILLION BARRELS AND IS OWNED BY THE SAME CONSORTIUM AS THE ADJACENT WEST LINAPACANA RESULTS ARE EXPECTED BEFORE THE START OF THE TYPHOON SEASON IN APRIL 9301180148 930118 WHO'S NEWS DETREX CORP DETREX CORP SOUTHFIELD MICH JOSEPH L WENZLER 51 YEARS OLD WAS ELECTED PRESIDENT CHIEF EXECUTIVE OFFICER AND DIRECTOR OF THIS CHEMICAL PRODUCTS MAKER MR WENZLER SUCCEEDS JOHN F MANGOLD 65 WHO WAS SERVING AS THE COMPANY'S INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER MR MANGOLD WILL CONTINUE AS A CONSULTANT TO THE COMPANY 9301180147 930118 COURT PAPERS SHOW INCREASED TENSION BETWEEN ROSTENKOWSKI US ATTORNEY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON COURT PAPERS UNSEALED BY A FEDERAL JUDGE REFLECT INCREASED TENSION BETWEEN REP DAN ROSTENKOWSKI AND THE US ATTORNEY HERE OVER NEWS ACCOUNTS OF A GRAND JURY INQUIRY REACHING INTO THE POWERFUL DEMOCRAT'S PERSONAL FINANCES THE DOCUMENTS WERE FILED LAST WEEK BY ATTORNEYS FOR THE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN ALLEGING THE GOVERNMENT HAS UNLAWFULLY DISCLOSED CONFIDENTIAL INFORMATION RELATED TO THE GRAND JURY PROCEEDINGS AS RECENTLY AS DEC 8 MR ROSTENKOWSKI'S DEFENSE SAID THAT IT MET WITH US ATTORNEY JAY STEPHENS'S OFFICE ABOUT THE CASE BUT THAT DESPITE REPORTS OF A PENDING INDICTMENT THEY HAVE YET TO BE INFORMED THE CHAIRMAN IS A TARGET OF THE INVESTIGATION THEIR COMPLAINT SEEKS A HEARING ON WHETHER THE GOVERNMENT SHOULD BE HELD IN CONTEMPT OF COURT FOR AN ALLEGED CAMPAIGN OF NEWS LEAKS TO WEAKEN THE DEMOCRAT AND RAISE THE PROFILE OF THE CASE AND PUT PRESSURE ON THE INCOMING CLINTON ADMINISTRATION AS THE TIME IS WINDING DOWN BEFORE THE NEW ADMINISTRATION TAKES OFFICE THE US ATTORNEY'S ACTIVITY IN THE GRAND JURY AND NEWS LEAKS HAVE INCREASED DRAMATICALLY THE COMPLAINT SAID THE CUMULATIVE EFFECT OF THIS MEDIAORIENTED CAMPAIGN IS TO WAGE A WAR OF ATTRITION AGAINST THE CONGRESSMAN SO THAT HIS REPUTATION AND THE PUBLIC'S PERCEPTION OF HIM IS TAINTED WITHOUT THE NEED FOR THE GOVERNMENT TO BRING OR PROVE FORMAL CHARGES NO AMERICAN NOT EVEN A MEMBER OF CONGRESS SHOULD HAVE TO STAND BY WHILE HIS CONSTITUTIONAL RIGHTS ARE SO BLATANTLY DISREGARDED MR ROSTENKOWSKI'S COMPLAINT FILED LAST MONDAY PRODUCED A WEEKLONG DISCLOSURE BATTLE JUDGE JOHN GARRETT PENN CHIEF JUDGE FOR THE US DISTRICT COURT HERE FIRST ORDERED THE MOTION SEALED EVEN THE CASE NUMBER WAS DEEMED COVERED UNDER HIS ORDER ATTORNEYS FOR THE WALL STREET JOURNAL FILED A MOTION FOR IMMEDIATE DISCLOSURE BUT MR STEPHENS'S OFFICE SOUGHT TO DELAY A DECISION UNTIL LATER THIS WEEK LAWYERS FOR THIS NEWSPAPER FILED A RESPONSE AGAIN CITING FIRST AMENDMENT RIGHTS AND LATE FRIDAY JUDGE PENN LIFTED HIS ORDER THE JUDGE LEFT MR STEPHENS'S OFFICE THE OPTION OF ANSWERING MR ROSTENKOWSKI'S COMPLAINT UNDER SEAL BUT HE NOTED THAT THE GOVERNMENT HAS ALREADY ACKNOWLEDGED THAT THERE DOESN'T APPEAR TO BE ANY REASON WHY THE RESPONSE CAN'T BE FILED ON THE PUBLIC RECORD AS WELL KEVIN OHLSON A SPOKESMAN FOR MR STEPHENS'S OFFICE DECLINED TO COMMENT YESTERDAY ON JUDGE PENN'S RULING BUT HE ISSUED A STATEMENT REGARDING MR ROSTENKOWSKI'S COMPLAINT DIVERSIONARY TACTICS TO DEFLECT ATTENTION ARE NOT UNCOMMON IN PUBLIC CORRUPTION INVESTIGATIONS HE SAID WE WILL NOT BE DETERRED FROM FULFILLING OUR PROFESSIONAL OBLIGATION TO FOLLOW THE EVIDENCE WHEREVER IT LEADS IN AN INTERVIEW LAST WEEK MR STEPHENS SAID THAT SUBSTANTIAL PROGRESS HAD BEEN MADE IN THE CASE SEPARATELY INVESTIGATORS COMPLAIN OF AN ALLEGED PATTERN OF OBSTRUCTION BY THE ROSTENKOWSKI CAMP THOSE CLOSE TO THE CHAIRMAN HOWEVER INSIST THAT THE SOCALLED WIDENING NET REFLECTS THE PROSECUTION'S FRUSTRATION IN FAILING TO GET EVIDENCE TO MAKE THE CASE BEFORE THE GRAND JURY THE INVESTIGATION WHICH STARTED IN LATE 1991 BEGAN WITH CHARGES OF EMBEZZLEMENT AND DRUG DEALING AMONG LOWLEVEL EMPLOYEES AT THE HOUSE POST OFFICE SINCE THEN FIVE PEOPLE HAVE PLEADED GUILTY TO VARIOUS CHARGES IN ADDITION TESTIMONY HAS FOCUSED ON ALLEGATIONS OF HOUSE POST OFFICE HIGHERUPS AS WELL AS LAWMAKERS USING STAMP TRANSACTIONS TO LAUNDER POLITICAL AND OFFICE FUNDS AND SINCE NOVEMBER'S ELECTION THERE HAS BEEN A WAVE OF NEW SUBPOENAS SEEKING FINANCIAL DOCUMENTS AND TESTIMONY FROM ROSTENKOWSKI AIDES AND FAMILY APART FROM STAMP PURCHASES BY MR ROSTENKOWSKI'S OFFICE AND POLITICAL CAMPAIGN ONE POTENTIAL ISSUE IS THE TAX TREATMENT OF RENT PAID BY HIS CAMPAIGN COMMITTEE FOR SPACE IN A FAMILY COMPOUND OF SORTS IN CHICAGO THE PROSECUTOR'S INTEREST IN THE ARRANGEMENT WAS AGAIN SIGNALED LAST WEEK WHEN IT WAS LEARNED THAT A SUBPOENA HAD BEEN ISSUED SEEKING RECORDS AND TESTIMONY FROM MR ROSTENKOWSKI'S SISTER WHO LIVES IN AN APARTMENT IN THE SAME BUILDING AND SHARES IN ITS OWNERSHIP 9301180146 930118 FINANCING BUSINESS ATHENA NEUROSCIENCES INC ATHENA NEUROSCIENCES INC SOUTH SAN FRANCISCO THIS DEVELOPER OF PHARMACEUTICALS FOR NEUROLOGICAL DISORDERS SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF THREE MILLION COMMON SHARES THE COMPANY SAID 24 MILLION SHARES WILL BE OFFERED IN THE US AND 600000 OVERSEAS PAINEWEBBER INC AND ALEX BROWN & SONS WILL MANAGE THE UNDERWRITING 9301180145 930118 TECHNOLOGY NINTENDO TO ISSUE WARNING ON EPILEPSY IN EUROPE AND JAPAN FLASHING VIDEOSCREEN LIGHTS ARE SAID TO TRIGGER SEIZURES IN SOME WITH THE DISORDER BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL VIDEO GAME GIANT NINTENDO CO WILL ISSUE WARNINGS TO CONSUMERS IN JAPAN AND THROUGHOUT EUROPE THAT FLASHING LIGHTS ON THE VIDEO SCREEN MAY TRIGGER EPILEPTIC SEIZURES MEANTIME THE COMPANY'S US AFFILIATE TRIED TO QUELL CONCERN PROMPTED BY NEWS OF THE JAPANESE MOVE IN THE US SUCH WARNINGS HAVE BEEN ROUTINELY ISSUED SINCE 1991 WITH THE NINTENDO ENTERTAINMENT SYSTEM AND SUPER NES GAME HARDWARE AS WELL AS IN GAME CARTRIDGES SAID A SPOKESWOMAN FOR NINTENDO OF AMERICA BASED IN REDMOND WASH IN MARCH NINTENDO OF AMERICA MAY GO TO COURT TO DEFEND ITSELF AGAINST A 1991 LAWSUIT BY A DETROIT TEENAGER WHO SUFFERED A SEIZURE AFTER PLAYING ITS VIDEO GAMES NOW 20 YEARS OLD THE YOUNG WOMAN AND HER FATHER HAVE ASKED THE COURT FOR 26 MILLION IN DAMAGES THE ASSOCIATED PRESS SAID NINTENDO WITH 43 BILLION IN ANNUAL SALES AND 80 OF THE VIDEO GAME MARKET DENIED THE PACKAGE INSERTS WERE A DEFENSIVE RESPONSE TO THE LAWSUIT SAYING IT WAS ALREADY STUDYING THE PROBLEM WHEN THE LAWSUIT WAS FILED IT WAS THE RESPONSIBLE THING TO DO THE SPOKESWOMAN SAID IN REDWOOD CITY CALIF NINTENDO'S COMPETITOR SEGA OF AMERICA INC SAID IT INTRODUCED PACKAGE WARNINGS IN 1992 ADVISING PEOPLE WITH KNOWN EPILEPSY TO AVOID THEIR PRODUCTS AND ANYONE WHO SUFFERS CONVULSIONS OR OTHER SYMPTOMS WHILE PLAYING TO STOP THE GAME AND CONSULT A DOCTOR VIDEOTRIGGERED SEIZURES ARE REAL BUT EXTREMELY RARE AFFECTING ONLY A MINORITY OF EPILEPTICS ACCORDING TO THE EPILEPSY FOUNDATION OF AMERICA A VOLUNTEER ORGANIZATION BASED IN LANDOVER MD A NEUROLOGICAL DISORDER GENERAL EPILEPSY AFFECTS ABOUT 1 OF THE US POPULATION OR 25 MILLION PEOPLE SEIZURES CAN RANGE FROM A MOMENTARY LAPSE OF AWARENESS TO FULLBLOWN CONVULSIONS AT ISSUE IN THE CURRENT CONTROVERSY ARE ABOUT 3 OF PEOPLE WITH EPILEPSY HAVING A VARIETY KNOWN AS PHOTOSENSITIVE OR LIGHTINDUCED EPILEPSY KNOWN SINCE THE EARLY DAYS OF TELEVISION THE CONDITION WAS FORMERLY TRIGGERED BY THE ROLLING AND FLIPPING OF VIDEO IMAGES LIKEWISE STROBE LIGHTS SUNLIGHT FLASHING THROUGH TREES OR REFLECTIONS BOUNCING OFF WATER CAN POSE A PROBLEM MARTHA MORRELL DIRECTOR OF THE EPILEPSY CENTER AT STANFORD MEDICAL SCHOOL SAID EVERY YEAR THERE ARE PROBABLY TWO OR THREE CHILDREN FOR WHOM THIS IS A PROBLEM BUT SHE ADDED IT'S NOT JUST NINTENDO LIGHT FREQUENCY AND WAVELENGTH SWIFTLY FLASHING LIGHTS OR THE COLOR RED SEEM TO BE AT PLAY IN TRIGGERING THE EPISODES EUROPEAN TELEVISION BROADCAST AT 50 CYCLES PER SECOND PROVOKES MORE PROBLEMS THAN US TELEVISION WHICH IS BROADCAST AT 60 CYCLES PER SECOND SHE ADDED HOWEVER INDUSTRY AND MEDICAL EXPERTS ALIKE STRESSED VIDEO IMAGES DON'T CAUSE EPILEPSY RATHER THEY MAY TRIGGER A PREEXISTING CONDITION TO MANIFEST ITSELF INDEED STANFORD'S DR MORRELL SAID LONG SESSIONS WITH NINTENDO'S MARIO BROTHERS OR SEGA'S SONIC THE HEDGEHOG MAY PRESENT MORE SIGNIFICANT HEALTH HAZARDS THAN THE CURRENT SEIZURE SCARE I WAS AMAZED THEY THE COMPANIES WOULD GO TO THE TROUBLE OF PUTTING A WARNING ABOUT EPILEPSY REPETITIVE STRESS INJURY IS PROBABLY MUCH MORE OF A PROBLEM SHE SAID IN A REFERENCE TO NERVEDAMAGED WRISTS THAT AFFLICT TYPISTS AND VIDEO GAME WIZARDS ALIKE FOR NOW NINTENDO OF AMERICA SAID IT DOESN'T PLAN TO REVAMP ANY OF ITS PRODUCTS BY ALTERING LIGHT FREQUENCY OR ELIMINATING RED LIGHT NOR HAS IT DECIDED TO ADD WARNINGS TO ITS HANDHELD GAMEBOY PRODUCTS WHICH USE A MATTE LIQUIDCRYSTAL DISPLAY RATHER THAN ILLUMINATED FLASHES WE'RE GOING TO CONTINUE WORKING WITH THE EPILEPSY FOUNDATION AND DO WHAT'S RIGHT THE SPOKESWOMAN SAID 9301180144 930118 WHO'S NEWS BENETTON GROUP BENETTON GROUP TREVISO ITALY ARTHUR BYLIN 56 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRINCE HOLDINGS AN INTERNATIONAL MAKER OF TENNIS RACKETS AND OTHER SPORTSRELATED PRODUCTS IN PRINCETON NJ MR BYLIN WILL CONTINUE AS PRESIDENT OF THE PRINCE MANUFACTURING INC UNIT HE SUCCEEDS JOHN SULLIVAN 57 WHO RESIGNED TO PURSUE OTHER INTERESTS THE PRINCE COMPANIES ARE PART OF BENETTON'S 3 BILLION EDIZIONE HOLDING CO 9301180143 930118 WHO'S NEWS ALCO STANDARD CORP ALCO STANDARD CORP VALLEY FORGE PA ROBERT M BAUMGARDNER 55 YEARS OLD WAS NAMED PRESIDENT OF COPCO PAPERS OF COLUMBUS OHIO ONE OF THE PAPER DISTRIBUTION COMPANIES OF PAPER CORP OF AMERICA WHICH IS THE MAIN UNIT OF THIS DISTRIBUTOR OF PAPER PRODUCTS AND OFFICE PRODUCTS MR BAUMGARDNER SUCCEEDS EDWARD H STRAND 61 WHO WAS RECENTLY NAMED PRESIDENT OF UNIVERSAL PAPER CO APPLETON WIS ANOTHER DISTRIBUTION COMPANY OF PAPER CORP OF AMERICA JAMES E BIRD 38 WAS NAMED PRESIDENT OF CARPENTER PAPER A PAPER CORP DISTRIBUTOR IN DENVER SUCCEEDING MR BAUMGARDNER MR BIRD HAD BEEN VICE PRESIDENT OF THE CENTRAL MARKETING REGION FOR CARPENTER PAPER 9301180142 930118 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK CRAIG A CASTLE 55 YEARS OLD WAS NAMED PRESIDENT OF COROMETRICS MEDICAL SYSTEMS INC A WALLINGFORD CONN UNIT OF THIS PHARMACEUTICAL AND MEDICAL PRODUCT CONCERN MR CASTLE WHO HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF UT INC AND ITS PERINATRONICS INC UNIT IN PALM BEACH GARDENS FLA SUCCEEDS JOHN T SHIPHERD 55 WHO RESIGNED LAST MONTH TO PURSUE OTHER INTERESTS 9301180141 930118 FINANCING BUSINESS RAYROCK YELLOWKNIFE RESOURCES INC RAYROCK YELLOWKNIFE RESOURCES INC TORONTO THE MINING CONCERN SAID IT PLANS TO OFFER INCENTIVES TO HOLDERS OF ITS CONVERTIBLE DEBENTURES TO ENCOURAGE THEM TO SWAP THE DEBENTURES FOR SUBORDINATE VOTING SHARES IN RAYROCK THE COMPANY SAID IT WILL PAY 15 OF THE FACE VALUE OF THE DEBENTURES TO INVESTORS WHO CONVERT THEIR HOLDINGS INTO SHARES BY FEB 1 AT LAST REPORT THERE WERE 245 MILLION CANADIAN DOLLARS US192 MILLION PRINCIPAL AMOUNT OF THE 75 DEBENTURES OUTSTANDING UNDER THE TERMS OF THE DEBENTURES THEY CAN BE CONVERTED INTO EQUITY AT C10 A SHARE AT LAST REPORT RAYROCK HAD 118 MILLION SUBORDINATE VOTING SHARES OUTSTANDING IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY THE STOCK CLOSED AT C1050 A SHARE UP 375 CANADIAN CENTS RAYROCK SAID THE OFFER AIMED AT STRENGTHENING THE COMPANY'S FINANCIAL POSITION HAS BEEN AGREED TO BY HOLDERS REPRESENTING 56 OF THE DEBENTURES THE COMPANY SAID DEBENTURE HOLDERS ARE ENTITLED TO TENDER THEIR DEBENTURES FOR REDEMPTION ON MARCH 15 1994 THE DEBENTURES MATURE MARCH 15 1997 THE COMPANY IS ENTITLED TO CALL FOR THE REDEMPTION OF THE DEBENTURES IF THE VOTING SHARES TRADE AT C1250 OR MORE FOR 30 CONSECUTIVE TRADING DAYS RAYROCK IS A COPPER AND GOLD MINING CONCERN WITH INTERESTS IN SPECIALTY FERTILIZERS AND OIL AND GAS PRODUCTION 9301180140 930118 TECHNOLOGY BY G PASCAL ZACHARY MADONNA AND VALENTINO NEW FILM SPECIAL EFFECTS ARE ERASING THE LINE BETWEEN TRUTH AND FICTION A DECADE AGO WOODY ALLEN'S ZELIG CHARACTER POPPED UP IN A SERIES OF AUTHENTIC OLD NEWSREELS PLACING HIM IN A VARIETY OF HISTORICAL SETTINGS BUT ZELIG'S MOTIONS WERE NOT SYNCHRONIZED WITH THE OLD FOOTAGE BETRAYING THE ARTIFICE AT WORK POWERFUL SUPERCOMPUTERS ARE NOW MAKING IT POSSIBLE TO BLEND ACTORS SEAMLESSLY INTO HISTORICAL FOOTAGE ONE MOVIE IN PRODUCTION STARRING CLINT EASTWOOD SLIPS HIS CHARACTER INTO THE FAMOUS ZAPRUDER FILM OF THE KENNEDY ASSASINATION WHILE TAMPERING WITH OLD FILMS MAY UPSET SOME PURISTS WHO WORRY ABOUT MANIPULATING HISTORY AND MISLEADING VIEWERS THE MORE OBVIOUS PROSPECT IS TO SEE DEAD ACTORS AND ACTRESSES MAKING CAMEO APPEARANCES IN MOVIES OR COMMERCIALS BUT DON'T EXPECT THE DEAD TO DO ANYTHING THEY HAVEN'T ALREADY BEEN FILMED DOING AT LEAST FOR NOW TO DO A WHOLE FEATURE FILM WITH A DEAD ACTOR WOULD BE UNBELIEVABLY EXPENSIVE EVEN BY HOLLYWOOD'S OUTSIZED STANDARDS SAYS ROBERT GREENBERG WHOSE NEW YORK FIRM DID THE TECHNICAL WORK ON LAST YEAR'S GROUNDBREAKING DIET COKE AD THAT SHOWED LOUIS ARMSTRONG AND JAMES CAGNEY WITH THE PRODUCT YET COMPUTERS ARE EVER CHEAPER AND THE SOFTWARE NEEDED TO SYNCHRONIZE THE LIGHTING SCENES AND INTRICATE MOVEMENTS OF REAL AND SIMULATED FOOTAGE IS BECOMING MORE SOPHISTICATED REAL ACTORS SAYS MR GREENBERG ARE SAFE FOR FIVE YEARS BUT NO LONGER ADVOCATES OF IMPROVED COMPUTER SECURITY BUOYED BY BILL CLINTON'S ENTHUSIASM FOR HIGH TECHNOLOGY FAVOR LOOSENING RULES ON THE SALE OF CRYPTOGRAPHIC CODES WHICH THEY SAY IS THE SUREST WAY TO ENHANCE PRIVACY FOR MANY YEARS ENCRYPTION SOFTWARE HAS BEEN CLASSIFIED AS A MUNITION BY THE DEFENSE DEPARTMENT AND SUBJECT TO STRICT EXPORT CONTROLS THE RATIONALE THE US GOVERNMENT'S ELECTRONIC SNOOPS DON'T WISH TO BE THWARTED OVERSEAS BUT IT'S BECOMING IMPOSSIBLE TO BOTTLE UP THESE TECHNOLOGIES IN THE US AS BOTH AMERICAN AND FOREIGN COMPANIES FIND IT INCREASINGLY EASY TO ADD ENCRYPTION CAPABILITIES TO EVERYTHING FROM CELLULAR PHONES TO WORDPROCESSING SOFTWARE CURRENTLY THE RULES MAINLY HURT US COMPANIES COMPETITIVELY ABROAD ADVOCATES OF LOOSENING SAY MOREOVER MOST US COMPANIES ARE RELUCTANT TO BUILD ENCRYPTION INTO PRODUCTS THEY CAN ONLY SELL AT HOME WHERE THERE ARE FEWER RULES THIS ISSUE IS FAST COMING TO A HEAD BECAUSE MICROSOFT AND APPLE COMPUTER SUPPLIERS OF THE TWO MOST POPULAR PC OPERATING SYSTEMS HOPE TO INCLUDE POWERFUL ENCRYPTION FEATURES IN FUTURE VERSIONS OF THEIR WINDOWS AND MACINTOSH SOFTWARE TELEPHONE MAKERS ARE DOING THE SAME AMERICAN TELEPHONE & TELEGRAPH FOR INSTANCE IS BELIEVED TO BE BUILDING A DEVICE THE SIZE OF A CIGARETTE PACK THAT FOR LESS THAN 500 WILL MAKE IT NEARLY IMPOSSIBLE TO EAVESDROP ON A REGULAR CALL OUTDATED EXPORT CONTROLS THREATEN TO CRIPPLE US INDUSTRY SAYS DOUGLAS R MILLER OF THE SOFTWARE PUBLISHERS ASSOCIATION WHICH LAST JULY STRUCK A BARGAIN WITH THE GOVERNMENT THAT MADE IT EASIER TO EXPORT CRYPTOGRAPHIC CODES WITHIN MASSMARKET PRODUCTS NOW THE SPA IS LOBBYING THE CLINTON TRANSITION TEAM TO ENDORSE AN ADMINISTRATIVE CHANGE THAT WOULD ALLOW THE EXPORT OF EVEN HARDERTOCRACK CODES INCLUDING A VARIANT OF THE NOWRESTRICTED DATA ENCRYPTION STANDARD IF THAT DOESN'T WORK THE TRADE GROUP WILL SEEK A SPONSOR FOR LEGISLATION MANDATING THE CHANGE TRANQUILITE A GLASSESANDHEADPHONE COMBO THAT INDUCES A MEDITATIVE STATE IN WEARERS IS A HIT WITH HIGHTECH COGNOSCENTI PSYCHOLOGISTS HAVE KNOWN FOR DECADES THAT GAZING INTO A GANZFELD OR MONOCHROMATIC FIELD CAN INSPIRE A FEELING OF PROFOUND RELAXATION IN VIEWERS MEDITATION CAN DO THE SAME BUT TAKES TIME AND DISCIPLINE TRANQUILITE OWNED BY ZANE TANKEL PARTNERS IN NEW YORK OFFERS A SHORTCUT TO INNER PEACE PROVIDING INSTANT MEDITATION WITHIN THREE MINUTES SAYS ZANE TANKEL WEARERS OF TRANQUILITE PROTOTYPES SEE AN UNVARYING BLUE FIELD AND HEAR A SOUND THAT HAS BEEN STRIPPED OF ANY STIMULATIVE FREQUENCIES THE EFFECT IS TO INDUCE A PROFOUND RELAXATION STATE SAYS STEVEN KATZ A NEW YORK UNIVERSITY PSYCHIATRY PROFESSOR WHO HAS TRIED IT HE SEES NO ILL EFFECTS FROM THE EXPERIENCE AND THINKS IT CAN HELP TENSE OR ILL PEOPLE THE LATEST TRANQUILITE PROTOTYPE IS LIGHTER THAN EVER AND FOR THE FIRST TIME FULLY PORTABLE IT'S VERY INTRIGUING SAYS PAUL SAFFO A FUTURIST IN MENLO PARK CALIF MR TANKEL IS IN NO HURRY TO RUSH TRANQUILITE OUT OF THE LAB SAYING WE DON'T WANT TO BRING IT OUT JUST FOR THE LUNATIC FRINGE HE WANTS A MAJOR CONSUMER COMPANY TO BACK THE DEVICE WHICH IS EXPECTED TO SELL FOR SEVERAL HUNDRED DOLLARS SO FAR SONY IS LOOKING INTO TAKING OUT A LICENSE FROM TANKEL WHICH HOLDS A BROAD PATENT ON MOODALTERING GLASSES CONVINCING BUYERS OF TRANQUILITE'S BENEFITS WON'T BE EASY SAYS ROBERT BERENSON AN EXECUTIVE VICE PRESIDENT OF GREY ADVERTISING WHO HAS TRIED IT TO CATCH ON WIDELY YOU'D HAVE TO FIND WAYS TO DEMONSTRATE IT TO INFLUENTIAL AMERICANS WORDPERFECT'S USABILITY LAB FINDS THAT PEOPLE FROM DIFFERENT PARTS OF THE COUNTRY REACT DIFFERENTLY WHEN FACED WITH AN INSURMOUNTABLE PROBLEM IN A COMPUTER PROGRAM SOMEONE FROM THE WEST IS LIABLE TO BE VERY QUIET TO PUT THE BLAME ON THEMSELVES SAYS DON LAVANGE HEAD OF THE LAB IN OREM UTAH WHEREAS EAST COASTERS WILL TEND TO SCREAM AND BLAME THE DESIGNERS OF THE SOFTWARE FOR DOING A LOUSY JOB SOMALIA HAS THE PENTAGON THINKING HARDER ABOUT COOLING DOWN SOLDIERS IN THE HEAT ONE METHOD UNDER STUDY THAT HAS ADVANTAGES OVER FANS AND AIR CONDITIONERS IN TANKS AND HELICOPTERS A LIGHTWEIGHT JACKET FILLED WITH LIQUID COOLANT DEVELOPED BY LIFE SUPPORT SYSTEMS MOUNTAIN VIEW CALIF 9301180139 930118 INTERNATIONAL MOOD OF IRAQIS APPEARS UNSHAKEN DESPITE REPLAY OF GULF WAR ATTACK BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BAGHDAD IRAQ ALL DAY IRAQIS HAD DONE THEIR BEST TO WEAR A BOLD FACE FOR YESTERDAY'S SECOND ANNIVERSARY OF THE MOTHER OF ALL VICTORIES BUT A DAY THAT BEGAN WITH BURNING EFFIGIES OF PRESIDENT BUSH IN A 2 AM TORCHLIGHT PARADE AND FEATURED RALLIES POETRY READINGS AND A DEFIANT SPEECH BY SADDAM HUSSEIN ENDED WITH A SCALEDDOWN REPLAY OF THE USLED ATTACK OF TWO YEARS AGO THIS TIME THE ANTIAIRCRAFT FIRE THAT LIT UP THE NIGHT SKY OF THE IRAQI CAPITAL WAS PROMPTED BY CRUISE MISSILES HEADED FOR WHAT THE US SAID WAS A LARGE NUCLEARPROCESSING FACILITY IN A BAGHDAD SUBURB TWO YEARS AGO THE IRAQI DEFENSIVE FIRE HAD BEEN AIMED AT BOMBERS AND MISSILES THAT ATTACKED MILITARY FACILITIES IN THE CITY ITSELF AT LEAST THREE PEOPLE WERE KILLED AND 30 WOUNDED IN SUNDAY NIGHT'S ATTACK IRAQI OFFICIALS AND THE STATE MEDIA SAID AT ABOUT 930 PM LOCAL TIME 130 PM IN WASHINGTON A DISTANT KNOCKING ROSE ABOVE THE DIN OF TRAFFIC IN DOWNTOWN BAGHDAD ORANGE FIREFLIES THE LINES OF TRACERS MARKING THE PATH OF ANTIAIRCRAFT ROUNDS DARTED INTO THE AIR MANY MILES FROM A NINTHFLOOR PERCH IN THE ISHTAR SHERATON HOTEL ON THE TIGRIS RIVER IN THE CENTER OF THE CITY THE NIGHT WAS CLOUDLESS AND CLEAR THERE WERE NO SCREECHING JETS OR BOMBS OR MISSILES TO BE SEEN OR HEARD JUST THOSE FAROFF STREAKS OF ORANGE DOTS AND THE WOODPECKERLIKE RATTATTAT THE GUNS PRODUCED AS WAS THE CASE TWO YEARS AGO THE NIGHTTIME LIGHT SHOW IN THE SKY OVER BAGHDAD WAS RELAYED AROUND THE WORLD BY US TELEVISION NETWORKS ALMOST FROM THE FIRST SHOT BUT UNLIKE THE PREVIOUS ATTACK TRAFFIC CONTINUED MOVING CALMLY A FEW PEDESTRIANS STOPPED TO OBSERVE THE DISTANT LIGHTS AND THUNDER BUT THE PECULIAR AIR OF NORMALCY NOBODY COULD BE SEEN RUNNING FOR SHELTER IN THE DOWNTOWN AREA ATTESTED TO IRAQIS' FAITH IN THE ALLIED PILOTS' AIM AND MILITARY TARGETING AND THE FACT THAT IRAQI CITIES HAVE BEEN SUBJECTED TO ENEMY BOMBARDMENT FOR 10 OF THE PAST 12 YEARS THIS IS NORMAL FOR US SAID A YOUNG MAN WATCHING THE SKY SUDDENLY HOWEVER ALL OF CENTRAL BAGHDAD LIT UP WITH A DEAFENING ROAR ANTIAIRCRAFT GUNS MOUNTED ATOP TALL BUILDINGS JUST A FEW BLOCKS FROM THE SHERATON SPRAYED GLOWING ROUNDS OVER THE TIGRIS SOME OF THE SHOTS TOOK A LOW TRAJECTORY HUGGING THE TOPS OF DOWNTOWN BUILDINGS THEN RISING IN AN ARC IN THE SKY AND DISSIPATING LIKE FIREWORKS STILL THERE WAS NO SIGN OF ANY ALLIED PLANES BOMBS OR MISSILES ANYWHERE ONLY THE SEEMINGLY HAPHAZARD SPRAY OF IRAQI GUNS ALL OF THE ACTION SEEMED TO BE OUTSIDE THE CITY AMID THE HAIL OF TRACERS HOWEVER A STREAKING FIREBALL STRUCK JUST ACROSS THE TIGRIS FROM THE HOTEL EXTENSIVELY DAMAGING THE 14STORY ALRASHEED HOTEL BAGHDAD'S FINEST HOTEL THE SCENE AT THE ELRASHEED WAS CHAOS THERE WAS A LARGE CRATER IN THE GROUND BESIDE THE HOTEL WHERE THE EXPLOSION OCCURRED THE LOBBY WAS WRECKED AND WINDOWS WERE BLOWN OUT FOR BLOCKS IT'S STILL UNCLEAR WHAT CAUSED THE HOTEL DISASTER A US TOMAHAWK CRUISE MISSILE OR A LARGE IRAQI ANTIAIRCRAFT SHELL THAT FELL TO EARTH BEFORE EXPLODING WASHINGTON OFFICIALS SAID NO CRUISE MISSILES HAD BEEN AIMED AT BAGHDAD ITSELF BUT IRAQI OFFICIALS SHOWED WESTERN REPORTERS A LARGE CHUNK OF METAL THEY SAID WAS FOUND IN THE WRECKAGE AT THE HOTEL ON WHICH WAS INSCRIBED WILLIAMS INTERNATIONAL JACKSONVILLE FLORIDA SERIES 9039 N0001989C0204 THE ASSOCIATED PRESS CITING A BRITISH WEAPONSREFERENCE BOOK JANE'S WEAPONS SYSTEMS SAID WILLIAMS INTERNATIONAL CORP MAKES THE TURBOFAN ENGINE FOR THE US NAVY'S TOMAHAWK THE WEAPON USED IN YESTERDAY'S ATTACK ON THE ALLEGED NUCLEAR FACILITY OUTSIDE BAGHDAD THE ALRASHEED HOTEL MADE FAMOUS DURING THE GULF WAR AS THE HEADQUARTERS OF CABLE NEWS NETWORK'S PETER ARNETT WAS NEARLY HIT BY A MISSILE IN THE ATTACK TWO YEARS AGO IT WAS FULLY OCCUPIED THIS WEEK AND GUESTS INCLUDED MANY OF THE 80 OR SO JOURNALISTS AND TELEVISION TECHNICIANS WHO ARE IN TOWN FOR THE FACEOFF WITH THE USLED COALITION ONE OF THEM A CNN CAMERAWOMAN PHOTOGRAPHED THE UNIDENTIFIED PROJECTILE AS IT FLASHED BY HER SEVENTHFLOOR WINDOW AT THE HOTEL BEFORE EXPLODING ON THE GROUND THE HOTEL WAS ALSO CROWDED WITH HUNDREDS OF DELEGATES HERE FOR AN ISLAMIC CONFERENCE ACCORDING TO EARLY REPORTS THE EXPLOSION KILLED THE HOTEL'S LOBBY MANAGER AND A WAITRESS AN HOUR AFTER THE HOTEL EXPLOSION A MAN WAS STILL SCREAMING IN THE LOBBY I'M AN EGYPTIAN I'M AN EGYPTIAN I'LL GET REVENGE FOR THIS IT HAD BEEN A LONG DAY OF BLUSTER AND ANXIETY A HALF DAY BEFORE THE ATTACK AT THE 8 AM ASSEMBLY AT THE ALAKEEDA SCHOOL HIGH SCHOOL GIRLS LINED UP TO CHANT THEIR LOVE FOR SADDAM HUSSEIN THEIR HATRED OF GEORGE BUSH AND THEIR DESIRE FOR PEACE FARA KAVEMY PRESIDENT OF THE SCHOOL'S BAATH PARTY STUDENT UNION INSISTED THAT KUWAIT WAS HISTORICALLY PART OF IRAQ AND WOULD RETURN SOME DAY IRAQ HAD WON A VICTORY TWO YEARS AGO SHE SAID BECAUSE WE STOOD AGAINST THE AGGRESSION OF 30 COUNTRIES MS KAVEMY AN 18 YEAR OLD WEARING A PINK 1950SSTYLE HIGH SCHOOL LETTERSWEATER WITH A PATCH THAT SAYS VERITAS ACROSS THE TOP AND SADDAM ACROSS THE BOTTOM SAID SHE NEVER HEARD THAT IRAQ USED CHEMICAL WEAPONS AGAINST KURDS IN NORTHERN IRAQ A CHARGE DOCUMENTED BY HUMAN RIGHTS GROUPS AND SHE SAID THE ATROCITIES ALLEGEDLY COMMITTED BY IRAQI SOLDIERS IN KUWAIT ARE LIES ANOTHER STUDENT DALIA ZEYAD 17 DOESN'T THINK BILL CLINTON WILL BE BETTER FOR IRAQ THAN MR BUSH ALL AMERICAN PRESIDENTS HATE IRAQIS SHE SAID THE SECOND COALITION BOMBING OF BAGHDAD IN TWO YEARS IS LIKELY TO COMPOUND THE RAGE FELT HERE TOWARD MR BUSH AND INCREASINGLY TOWARD THE US ITSELF THE UNITED NATIONS EMBARGO AGAINST IRAQ HAS CAUSED SKYROCKETING PRICES AND SCARCITY OF MANY GOODS INCLUDING FLOUR SUGAR GRAINS AND MEAT THE HARDSHIPS COUPLED WITH DESPAIR OVER THE THE LIKELIHOOD THAT SADDAM HUSSEIN WILL HOLD ON TO POWER HAS BRED MUCH DEEPER ENMITY FOR THE ALLIES NOW THAN AFTER THE WAR WE KNOW SADDAM WE HAVE LIVED WITH HIM FOR 20 YEARS SAID A YOUNG IRAQI ENGINEER BUT THE EMBARGO IS MAKING US SICK AFTER THE ATTACK SADDAM HUSSEIN WENT ON RADIO TO URGE IRAQIS TO STRIKE BACK AT THE US THE LOSERS OF THE GULF WAR HAVE ONCE AGAIN RETURNED TO BAGHDAD CARRYING WITH THEM THE WRATH OF THE UTTER DEFEAT HE SAID 9301180138 930118 WHO'S NEWS KYSOR INDUSTRIAL CORP KYSOR INDUSTRIAL CORP CADILLAC MICH TERRY M MURPHY FORMERLY VICE PRESIDENTFINANCE TREASURER AND CHIEF FINANCIAL OFFICER OF NORTHWEST TELECOMMUNICATIONS INC LACROSSE WIS WAS NAMED VICE PRESIDENT CHIEF FINANCIAL OFFICER OF THIS MANUFACTURER OF HEATING AND AIR CONDITIONER EQUIPMENT FOR COMMERCIAL VEHICLES MR MURPHY 44 YEARS OLD SUCCEEDS PETER W GRAVELLE WHO WAS PROMOTED TO EXECUTIVE PRESIDENT AND CHIEF OPERATING OFFICER 9301180137 930118 CANADIANS CUT BACK TRIPS TO THE US FOR SHOPPING OTTAWA CANADIANS SQUEEZED BY A DROP IN THEIR CURRENCY HAVE CUT BACK ON SHOPPING EXCURSIONS TO US CITIES NEAR THE TWO COUNTRIES' BORDER STATISTICS CANADA A GOVERNMENT AGENCY SAID SAMEDAY AUTO TRIPS BY CANADIANS TO THE US DECLINED 58 IN NOVEMBER TO A SEASONALLY ADJUSTED 4190000 FROM 4450000 IN OCTOBER MOST CROSSBORDER SHOPPING EXCURSIONS ARE ONEDAY CAR TRIPS STATISTICS CANADA SAID THE NOVEMBER FIGURE WAS THE LOWEST FOR ANY MONTH SINCE MAY 1990 SHOPPING IN THE US HAS BECOME MORE COSTLY FOR CANADIANS BECAUSE THE CANADIAN DOLLAR HAS DROPPED ALMOST 10 AGAINST ITS US COUNTERPART IN THE PAST YEAR SAMEDAY AUTO TRIPS BY US RESIDENTS TO CANADA DECLINED 04 IN NOVEMBER TO A SEASONALLY ADJUSTED 1575000 9301180136 930118 WHO'S NEWS GOLDEN EAGLE GROUP INC GOLDEN EAGLE GROUP INC MIAMI MICHAEL MILBERG AND ALLEN MOROSOHK WERE NAMED TO THE BOARD OF THIS INTERNATIONAL FREIGHT FORWARDING COMPANY MR MILBERG 35 YEARS OLD IS A MIAMI AREA BUSINESSMAN WHILE MR MOROSOHK 46 IS CONTROLLER AND DIRECTOR OF INTERNATIONAL OPERATIONS FOR EDWARD DON & CO A FORT LAUDERDALE FLA DISTRIBUTOR OF HOTEL AND RESTAURANT EQUIPMENT 9301180135 930118 WHO'S NEWS FIRST PACIFIC NETWORKS FIRST PACIFIC NETWORKS SUNNYVALE CALIF CRAIG J BRUNET FORMER SENIOR VICE PRESIDENT OF ENTERGY SERVICES INC AND STRATEGIC PLANNING DIRECTOR AT AMERICAN TELEPHONE & TELEGRAPH CO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF THIS DEVELOPER OF DIGITAL SWITCHING TECHNOLOGY FOR TELEPHONE AND DATA COMMUNICATIONS HE SUCCEEDS JAMES K GIBBY WHO WAS NAMED CHAIRMAN OF THE COMPANY 9301180134 930118 TECHNOLOGY EPA TO PROPOSE TEST RULE ON BIOTECHNICAL PESTICIDES WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SAID IT WILL PROPOSE A RULE TO CLARIFY PERMIT REQUIREMENTS FOR TESTING BIOTECHNOLOGICALLY DERIVED PESTICIDES THE PROPOSED RULE WHICH IS SET TO BE PUBLISHED TODAY IN THE FEDERAL REGISTER WOULD NARROW THE CIRCUMSTANCES IN WHICH COMPANIES WISHING TO TEST NEW MICROBIAL PESTICIDES OR TEST EXISTING ONES FOR NEW USES MUST GET EXPERIMENTALUSE PERMITS FROM THE EPA CURRENTLY THE EPA REQUIRES EXPERIMENTALUSE PERMITS FOR TESTING OF ALL GENETICALLY ALTERED MICROBIAL PESTICIDES ALTHOUGH THE RULE WOULD MAKE IT EASIER FOR SOME COMPANIES TO TEST GENETICALLY ENGINEERED PESTICIDES IT ALSO FOR THE FIRST TIME WOULD GIVE CURRENT PERMIT REQUIREMENTS THE FORCE OF LAW ACCORDING TO REBECCA GOLDBERG A SENIOR SCIENTIST AT THE ENVIRONMENTAL DEFENSE FUND DR GOLDBERG SAID SHE EXPECTED THAT THE CLINTON ADMINISTRATION WILL TIGHTEN THE PROPOSAL'S PERMIT REQUIREMENTS BEFORE ISSUING A FINAL RULE 9301180133 930118 WHO'S NEWS AIRGAS INC AIRGAS INC WILMINGTON DEL WILLIAM SANFORD 33 YEARS OLD WAS NAMED VICE PRESIDENT OF SALES AND MARKETING AT THIS DISTRIBUTOR OF INDUSTRIAL MEDICAL AND SPECIALTY GASES AND RELATED EQUIPMENT MR SANFORD WHO HAD BEEN PRESIDENT OF CASCADE AIRGAS A SEATTLEBASED UNIT OF AIRGAS SUCCEEDS RUDI ENDRES MR ENDRES 48 WAS RECENTLY NAMED VICE PRESIDENT/INTERNATIONAL A NEW POSITION THAT IS RESPONSIBLE FOR ALL OVERSEAS ACTIVITIES INCLUDING EXPORT SALES AND POTENTIAL NONUS ACQUISITIONS 9301180132 930118 WHO'S NEWS TRAVELERS CORP TRAVELERS CORP HARTFORD CONN JOSEPH T BROPHY 59 YEARS OLD WILL RETIRE MARCH 31 AS PRESIDENT OF THE TRAVELERS MANAGED CARE & EMPLOYEE BENEFITS OPERATIONS UNIT OF THIS INSURER RICHARD H BOOTH 45 PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY WILL ASSUME MR BROPHY'S RESPONSIBILITIES 9301180131 930118 BUSINESS BRIEF DOW CHEMICAL SETS BIG PRETAX CHARGE SEES LOSS OF AT LEAST 450 MILLION IN YEAR DOW CHEMICAL CO UNDERSCORING THE SLUMP IN THE GLOBAL CHEMICALS BUSINESS SAID IT WOULD TAKE A 430 MILLION PRETAX RESTRUCTURING CHARGE AGAINST 1992 EARNINGS AND REPORT A LOSS FOR THE FOURTH QUARTER AND YEAR ANALYSTS ESTIMATED DOW IS CUTTING MORE THAN 2000 OF ITS 62200 EMPLOYEES WORLDWIDE A DOW SPOKESMAN WOULDN'T QUANTIFY THE CUTS THE RESTRUCTURING CHARGE AT DOW WAS OVERDUE FOLLOWING BY UP TO A YEAR OR MORE SIMILAR MOVES BY DU PONT CO MONSANTO CO AND UNION CARBIDE CORP AMONG OTHERS ANALYSTS SAID DOW'S STOCK CLOSED UNCHANGED AT 5375 FRIDAY IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING DOW ESTIMATED ITS 1992 LOSS BASED ON THE 430 MILLION PRETAX CHARGE AS WELL AS ACCOUNTING CHARGES OF 735 MILLION OR 264 A SHARE ADOPTED TO REFLECT REQUIRED CHANGES IN REPORTING RETIREE HEALTH CARE COSTS AND INCOME TAXES WITH EUROPEAN BASIC CHEMICALS AND PLASTICS SALES ESPECIALLY ANEMIC DOW'S FOURTHQUARTER OPERATING RESULTS WILL BE WEAKER THAN PREVIOUSLY ANTICIPATED SAID ENRIQUE C FALLA DOW EXECUTIVE VICE PRESIDENT IN RECENT WEEKS DOW HAD STEERED ANALYSTS' OPERATING EARNINGS ESTIMATES DOWN TO 40 CENTS A SHARE COMPARED WITH 54 CENTS IN THE YEARAGO FOURTH QUARTER SLUGGISH EUROPEAN SALES ARE EXPECTED TO BE A DRAG ON FOURTHQUARTER EARNINGS FOR MOST BASIC CHEMICALS AND PLASTICS CONCERNS EXCLUDING AS MUCH AS A 20 CENTS A SHARE BENEFIT IN THE QUARTER FROM A LOWER TAX RATE FOURTHQUARTER OPERATING PROFIT MAY BE 10 CENTS A SHARE SAID ANANTHA RAMAN OF SG WARBURG & CO DOW SAID IT WOULD RESTATE 1992 QUARTERLY EARNINGS TO REFLECT THE RESTRUCTURING AND ACCOUNTING CHARGES DOW PLANS TO REPORT 1992 FOURTHQUARTER AND FULLYEAR RESULTS JAN 28 IN 1991 DOW HAD A FOURTHQUARTER LOSS OF 94 MILLION OR 35 CENTS A SHARE AFTER TAKING A 370 MILLION RESTRUCTURING CHARGE FOR THE FULL YEAR DOW EARNED 942 MILLION OR 346 A SHARE 9301180130 930118 DIVIDEND NEWS COMMUNICATIONS SATELLITE CORP COMMUNICATIONS SATELLITE CORP DIRECTORS INCREASED THE QUARTERLY DIVIDEND AND SAID THEY PLAN A 2FOR1 STOCK SPLIT SUBJECT TO SHAREHOLDER APPROVAL AT THE MAY 21 ANNUAL MEETING THE WASHINGTON DC COMMUNICATIONS COMPANY BOOSTED THE QUARTERLY DIVIDEND 57 TO 37 CENTS A SHARE FROM 35 CENTS PAYABLE MARCH 8 TO SHARES OF RECORD FEB 12 THE STOCK SPLIT IS EXPECTED TO OCCUR ABOUT JUNE 1 9301180129 930118 TECHNOLOGY INTEL PLANS TO CONSOLIDATE INDUSTRY LEAD WITH SALVO OF PRICE CUTS NEW PRODUCTS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL SANTA CLARA CALIF INTEL CORP WHICH PUT TO REST ANY DOUBTS THAT IT IS A NEW COMPUTER BELLWETHER BY POSTING STUNNING 1992 RESULTS LAST WEEK PLANS TO CONSOLIDATE ITS DOMINION WITH A BARRAGE OF PRICE CUTS NEW SEMICONDUCTORS AND PLANT INVESTMENTS THAT COULD DOUBLE ITS CHIPMAKING CAPACITY STILL THE SUDDEN RISE TO PROMINENCE PUTS NEW PRESSURES ON THE COMPANY SAID ANDREW GROVE PRESIDENT AND CHIEF EXECUTIVE OFFICER IN A WIDERANGING INTERVIEW ABOUT INTEL'S BUSINESS STRATEGY MR GROVE SAID THAT HE IS SOMEWHAT SCARED BY EXPECTATIONS OF INVESTORS WHO HAVE INCREASED INTEL'S STOCK PRICE MORE THAN TWOFOLD IN THE PAST EIGHT MONTHS I FEEL THE BURDEN OF THAT VERY DEFINITELY HE SAID INTEL PLANS TO SATISFY THOSE EXPECTATIONS BY HEADING OFF RIVALS WITH AGGRESSIVE MARKETING OF ITS FLAGSHIP MICROPROCESSOR THIS YEAR INTEL PLANS TO DRIVE DOWN PRICES ON ITS 486 CHIP USED AS THE BRAINS OF TODAY'S MOST POWERFUL PERSONAL COMPUTERS WHILE CHURNING OUT SOME 25 NEW VARIATIONS OF THE CHIP MR GROVE SAID TO MAKE SURE THERE'S NO HOLE IN THE PRODUCT PORTFOLIO THAT GIVES COMPETITORS AN ADVANTAGE BOOMING SALES OF THE 486 HAVE GIVEN THE COMPANY PHENOMENAL GROWTH LAST WEEK INTEL REPORTED THAT FOURTHQUARTER NET INCOME MORE THAN DOUBLED TO A RECORD 4286 MILLION OR 197 A SHARE ON A 54 JUMP IN REVENUE TO 186 BILLION THIS MONTH ALONE INTEL'S STOCK PRICE HAS CLIMBED 25 INTEL EXPECTS TO SEE CONTINUING BIG DEMAND FOR 486BASED PCS THROUGHOUT 1993 INCLUDING A SURGE OF NEW DEMAND FOR HOME PCS MR GROVE SAID INTEL'S ORDERS ARE UP IN THE CURRENT QUARTER AND APPEAR TO BE STRONG FOR THE SECOND QUARTER HE SAID SOME CUSTOMERS HAVE ALREADY BOOKED ORDERS INTO THE THIRD QUARTER AND ARE LEANING ON INTEL FOR FASTER DELIVERIES HE ADDED WE HAVE NO REASON TO BELIEVE THAT WON'T CONTINUE SAID MR GROVE MANY ANALYSTS AGREE THE 486 WILL SURPASS THE OLDER 386 MODEL TO BECOME THE MOSTSHIPPED SEMICONDUCTOR OF 1993 ACCORDING TO DATAQUEST INC A MARKET RESEARCH FIRM WHICH EXPECTS 486BASED MACHINES TO ACCOUNT FOR NEARLY 75 OF ALL PCS SHIPPED THIS YEAR MILLARD PHELPS AN ANALYST WITH HAMBRECHT & QUIST PREDICTS THAT INTEL WILL POST A 56 RISE IN PROFIT IN 1993 TO 167 BILLION OR 750 A SHARE ON A 34 JUMP IN REVENUE TO 78 BILLION INTEL HAS CONTROL OF THE MARKET WHICH MEANS CONTROL OF PRICING AND CONTROL OF PRODUCT MIX MR PHELPS SAID MR GROVE DECLINED TO ESTIMATE HOW MANY 486 CHIPS INTEL EXPECTS TO SELL THIS YEAR BUT COMPANY OFFICERS SAY THE SEMICONDUCTOR CONCERN WILL HAVE THE CAPACITY TO PRODUCE ABOUT 30 MILLION UP FROM AN AVERAGE CAPACITY OF 15 MILLION IN 1992 THAT INCREASE WILL HELP INTEL BATTLE RIVALS ADVANCED MICRO DEVICES INC AND CYRIX CORP WHICH PLAN TO MARKET THE FIRST 486 CLONES THIS YEAR SOME OF THAT CAPACITY WILL ALSO GO TOWARD INTEL'S NEXTGENERATION CHIP THE PENTIUM WHICH IS ON SCHEDULE TO BE INTRODUCED BY THE END OF MARCH MR GROVE SAID MR GROVE WOULDN'T OFFER A SPECIFIC FORECAST FOR 1993 BUT SAID THAT WE WILL SELL MANY MORE PENTIUM PROCESSORS THAN WE CAN MAKE THE PENTIUM WILL BE AGGRESSIVELY PRICED SO THAT IT ISN'T SEEN AS JUST A HIGHEND PROCESSOR HE ADDED BIG PC MAKERS SUCH AS DELL COMPUTER CORP HAVE SAID THAT INTEREST IN PENTIUMBASED PCS IS VERY STRONG AMONG CUSTOMERS TO MEET EXPECTED DEMAND FOR THE 486 FOR THE PENTIUM AND FOR A FUTURE GENERATION CHIP CODENAMED P6 EXPECTED OUT NEXT YEAR INTEL PLANS TO INVEST 16 BILLION IN CAPITAL IMPROVEMENTS THIS YEAR UP FROM 12 BILLION IN 1992 MR GROVE SAID THE EXPANSION COULD DOUBLE INTEL'S CHIPMAKING CAPACITY BY YEAR'S END HE ADDED BUT BECAUSE FUTURE 486 AND PENTIUM CHIPS WILL BE MORE COMPLEX THAN INTEL'S CURRENT PRODUCT MIX THE EXPANSION PLANS DON'T NECESSARILY MEAN THE COMPANY WILL PRODUCE TWICE AS MANY CHIPS AS LAST YEAR MR GROVE SAID INTEL PLANS TO INVEST ANOTHER 900 MILLION IN RESEARCH AND DEVELOPMENT UP FROM 800 MILLION LAST YEAR SOME OF WHICH WILL GO INTO YET ANOTHER GENERATION OF MICROPROCESSOR CODENAMED P7 THE PACE OF SPENDING ON CAPITAL IMPROVEMENTS AND RESEARCH AND DEVELOPMENT WILL PROBABLY CONTINUE IF GROWTH IN PC SALES HOLDS UP MR GROVE SAID STILL MR GROVE ADDED THAT HE AND HIS MANAGERS FEEL THE BURDEN OF THE SUDDEN INCREASE IN ATTENTION BY THE FINANCIAL COMMUNITY AND THE WORLD AT LARGE SUMMING UP THE FEELING OF MANY INTEL EXECUTIVES MR GROVE SAID A COLLEAGUE RECENTLY TOLD HIM THE HIGHER THE STOCK MOVES THE HARDER I WORK INTEL'S STOCK CLOSED AT 11175 A SHARE DOWN 1 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MR GROVE 57 YEARS OLD SAID HE IS ENJOYING HIMSELF AND STILL FINDING HIS WORK INTELLECTUALLY CHALLENGING AND THUS HAS NO PLANS FOR RETIREMENT STILL WHILE BUSINESS AT THE HIGHFLYING CHIP MAKER IS EXCITING A CONTINUED THREAT REMAINS FROM COMPETITORS SUCH AS THE VENTURE BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC TO MAKE A NEW MICROPROCESSOR THAT NEW CHIP CALLED THE POWERPC WON'T HAVE AN EASY TIME PENETRATING THE PC SPACE UNLESS WE DROP THE BALL MR GROVE SAID BUT HE ADDS ANY DAY WE COULD SCREW UP 9301180128 930118 LEISURE & ARTS A NEW CONCEPT IN CONCERTS BY HEIDI WALESON NEW YORK A CONCERT SAYS THE CONDUCTOR LEON BOTSTEIN IS A KIND OF DISTILLED 19THCENTURY RITUAL WHICH HAS NO EXPLANATION YOU GO IN THERE'S AN OVERTURE A CONCERTO A SYMPHONY NOBODY SAYS ANYTHING IT'S LIKE WALKING INTO SOMEBODY'S CHURCH PEOPLE BEGIN TO PRAY YOU HAVE THE GENERAL IDEA THAT THERE'S A GOD THERE YOU KNOW IT HAS A BEGINNING MIDDLE AND AN END BUT YOU HAVE NO IDEA WHAT'S GOING ON AND NOBODY IS THERE TO HELP YOU UNLIKE MANY CONDUCTORS AND MUSICBUSINESS TYPES WHO SPEAK ABOUT DECLINING AUDIENCES MR BOTSTEIN HAS ACTUALLY STUDIED PATTERNS OF CONCERT ATTENDANCE IN THE 19TH AND 20TH CENTURIES AT THE TURN OF THE CENTURY PEOPLE HAD BEGUN TO COMPLAIN ABOUT THE ROUTINE OF THE STANDARD CONCERT BY THE 1940S THE BIG ISSUE WAS ALREADY THE OSSIFICATION OF REPERTORY THIS POLYMATH MUSICIAN SCHOLAR AND PRESIDENT OF BARD COLLEGE WHOSE CONVERSATION IS STUDDED WITH REFERENCES TO HEGEL AND WITTGENSTEIN HAS DECIDED TO USE THE AMERICAN SYMPHONY ORCHESTRA OF WHICH HE IS NOW MUSIC DIRECTOR TO TRY TO CHANGE SOME FUNDAMENTAL ATTITUDES ABOUT CONCERT PRESENTATION UNLIKE THE NEW YORK PHILHARMONIC FOR EXAMPLE IT IS NOT A HUGE EDIFICE WITH AN ESTABLISHED SUBSCRIPTION AUDIENCE EXPECTING A CERTAIN KIND OF PROGRAMMING THE ASO WHICH IS SEARCHING FOR ITS NICHE IN THE CROWDED NEW YORK MARKET IS SMALL AND THEREFORE MANEUVERABLE MR BOTSTEIN'S SIX NEW YORK CONCERTS THIS SEASON ARE RADICALLY NONSTANDARD THE FIRST THREE WERE TIED TO EXHIBITS OF MODERN ART AT THE WHITNEY AND METROPOLITAN MUSEUMS AND THE NEW YORK PUBLIC LIBRARY A FOURTH TITLED UNJUST OBSCURITY WILL FEATURE WORKS BY SUCH COMPOSERS AS BALAKIEREV SCHMIDT LOEFFLER AND SZYMANOWSKI A FIFTH WILL BE AN EASTER PERFORMANCE OF FELIX MENDELSSOHN'S RARELY PERFORMED ORATORIO ST PAUL FINALLY THE ASO WILL DECONSTRUCT JOHANNES BRAHMS'S FOURTH SYMPHONY WITH THE HELP OF THE DUO PIANISTS MISHA AND CIPA DICHTER WITH THE EXCEPTION OF THE BRAHMS ALMOST ALL OF THE REPERTORY ON THE SERIES IS OBSCURE UNJUSTLY OR OTHERWISE THIS IS BECAUSE MR BOTSTEIN HAS ANOTHER HISTORICAL THEORY THIS ONE ABOUT THE CHANGE IN CHARACTER OF MUSIC LITERACY HE SAYS WE USED TO THINK THAT RECORDINGS WERE A SUPPLEMENT TO THE LIVE CONCERT AS IT DEVELOPED IN THE 19TH CENTURY IN FACT IT HAS TOTALLY REVERSED THE RECORDING IS THE FUNDAMENTAL BASE OF MUSIC LITERACY WHAT IS THE POINT THEN HE ASKS OF GOING TO HEAR A LIVE CONCERT OF WORKS THAT YOU CAN BUY IN 25 DIFFERENT VERSIONS IN A RECORD STORE WHY NOT GIVE CONCERTS FEATURING VARESE'S ARCANA AND JOHN CAGE'S CONCERTO FOR PREPARED PIANO INSTEAD TO ENABLE THE NOVICE LISTENER TO MAKE SENSE OF THIS MUSIC MR BOTSTEIN HAS DECIDED TO PUT HIS UNFAMILIAR PROGRAMS INTO SOME SORT OF HISTORICAL AND INTELLECTUAL CONTEXT FOR HIS AUDIENCE I'M TRYING TO PIERCE THE VEIL OF A FUNDAMENTAL PHILOSOPHICAL ILLUSION INHERITED FROM THE 19TH CENTURY WHICH IS THE NOTION OF ABSOLUTE MUSIC MUSIC HE INSISTS IS ABOUT SOMETHING HE ALSO BELIEVES THAT THE MODERN AUDIENCE WHILE INTIMIDATED BY MUSIC AND ITS CHURCHLY TRAPPINGS IS QUITE COMFORTABLE LOOKING AT AND TALKING ABOUT MODERN ART THUS THE CONCERT FEATURING CAGE AND VARESE WAS CALLED SURREALISM AND MUSIC THE WORLD AROUND RENE MAGRITTE MR BOTSTEIN ALLOWS AS HOW THE SURREALISM CONNECTION IS A BIT FARFETCHED HENCE THE QUESTION MARK IN THE TITLE BUT HE SOLDIERED GAMELY AND ELOQUENTLY ON THROUGH A PRECONCERT LECTURE BUILDING HIS CASE BY TALKING ABOUT THE POSTWORLD WAR I MILIEU THAT PRODUCED MUSICIANS AS WELL AS PAINTERS WHO WANTED TO DRAW YOU IN AND MAKE YOU UNCOMFORTABLE AND BREAK THE BARRIERS BETWEEN ART AND LIFE HE WAS AIDED BY ELLEN HANDLER SPITZ A CORNELL UNIVERSITY PROFESSOR WHO SPOKE OF THE SURREALISTS' ATTEMPTS AT DISLOCATION THROUGH HER PERSPECTIVE AS A FREUDIAN ANALYST AND BY VERY DETAILED PROGRAM NOTES FROM A PANOPLY OF EXPERTS HE ALSO SPOKE DURING THE CONCERT FOR THE BENEFIT OF THOSE WHO HAD NOT COME EARLY MR BOTSTEIN SPEAKS BRILLIANTLY AND PROVOCATIVELY HIS MUSIC MAKING UNFORTUNATELY IS NOT UP TO THAT STANDARD AS A CONDUCTOR HIS PERFORMANCES ARE OFTEN LUMPY AND ILLTUNED HE ALSO CHOOSES REPERTOIRE TO FIT HIS THEMES AND IT IS NOT ALWAYS OUT OF THE TOP OR EVEN THE SECOND DRAWER THE FIRST PROGRAM OF THE SEASON INCLUDED TRAINS BOUND FOR GLORY A FORGETTABLE EXTRAVAGANZA FOR TENOR ORCHESTRA AND CHORUS BY KURT WEILL AND THE SCHMALTZY KORNGOLD VIOLIN CONCERTO THEY CERTAINLY ILLUSTRATED THE THEME OF WORLD WAR IIERA EUROPEAN COMPOSERS IN AMERICA BUT THE WEILL IN PARTICULAR WAS UNSATISFYING THE SURREALISM CONCERT WHICH PILED THE CAGE ON TOP OF THE VARESE IN ADDITION TO SEVERAL OTHER PIECES WAS A LONG OVERLY TAXING EVENING MR BOTSTEIN GETS A BIT CARRIED AWAY IN HIS ENTHUSIASM BUT THE FIRST CONCERT ALSO HAD TWO SHORT FASCINATING PIECES BY BOHUSLAV MARTINU 18901959 AND NO OTHER ORGANIZATION AIMED AT A MAINSTREAM AUDIENCE IS PLAYING CAGE AND VARESE PERHAPS THE MOST INTERESTING ASPECT OF THE ASO CONCERTS WAS THAT THE AUDIENCE RATHER THAN STREAMING FOR THE DOORS REMAINED SEATED AND APPRECIATIVE NO DOUBT LISTENING FOR SURREALISM AND AMERICAN INFLUENCES THE ASO HAS BEEN AGGRESSIVELY MARKETING ITS NEW CONCEPT SPECIAL CROSSPROMOTIONS AND EVENTS ARE DESIGNED TO LURE THE ART AUDIENCE INTO CONCERTS FOR EXAMPLE AND IT REPORTS THAT ITS SUBSCRIPTION SALES WERE UP 11 THIS SEASON CLEARLY THERE IS AN AUDIENCE THAT WANTS CONCERTS THAT OFFER CONNECTIONS MR BOTSTEIN HOPES THAT THEY'LL BE PROVOKED ENOUGH TO BUY RECORDINGS OF RELATED MASTERPIECES AND THAT THEY'LL COME TO CONCERTS OF RECENTLY WRITTEN MUSIC THAT THEORETICALLY OFFERS THE MOST IMMEDIATE OF CONNECTIONS HE HAS THE HISTORIAN'S DREAM JOBAN OPPORTUNITY TO RECREATE ANOTHER ERA WHICH IN HIS CASE IS A TIME WHEN MUSIC WAS A PART OF EVERYDAY LIFE MS WALESON IS A FREELANCE MUSIC WRITER IN NEW YORK 9301180127 930118 PRICE WATERHOUSE DELOITTE ANNOUNCE SHANGHAI VENTURES SPECIAL TO THE WALL STREET JOURNAL HONG KONG TWO MAJOR US ACCOUNTING FIRMS PRICE WATERHOUSE AND DELOITTE ROSS TOHMATSU ANNOUNCED THE FORMATION OF VENTURES IN SHANGHAI RAISING THE NUMBER OF INTERNATIONAL ACCOUNTING FIRMS OPERATING IN CHINA TO SIX PRICE WATERHOUSE TEAMED UP WITH DAFA CERTIFIED PUBLIC ACCOUNTANTS WHILE DELOITTE ROSS JOINED FORCES WITH SHANGHAI CPA FIRM ACCORDING TO THE CHINA DAILY AN OFFICIAL AT CHINA'S CPA INSTITUTE TOLD THE ENGLISHLANGUAGE NEWSPAPER CHINA WILL NEED THE STATURE OF THE US FIRMS TO BOLSTER ITS FLEDGLING ACCOUNTING INDUSTRY WHICH HAS BECOME IMPORTANT TO THE DEVELOPMENT OF CHINA'S STOCK MARKET AND OTHER MARKETORIENTED SECTORS THE OTHER FOUR ACCOUNTING HOUSES OPERATING IN CHINA ARE COOPERS & LYBRAND INTERNATIONAL KPMG PEAT MARWICK ARTHUR ANDERSEN & CO AND ERNST & YOUNG 9301180126 930118 LIFETIME PRODUCTS SEES SUBSTANTIAL' 1992 LOSS ON 64 REVENUE DROP DALLAS LIFETIME PRODUCTS INC SAID IT EXPECTS TO REPORT A SUBSTANTIAL LOSS FOR 1992 ON A SALES DECLINE OF ABOUT 64 ALTHOUGH THE MARKETER OF WINDSHIELD WIPERS DIDN'T SPECIFY THE SIZE OF ITS EXPECTED LOSS IT SAID RESULTS WILL INCLUDE THE WRITEOFF OF MOST OF THE COMPANY'S 12 MILLION IN GOODWILL FOR 1991 LIFETIME REPORTED NET INCOME OF 152 MILLION OR 205 A SHARE AFTER A 92 MILLION GAIN FROM DISCONTINUED OPERATIONS THE COMPANY SAID WEAK SALES IN THE FIRST NINE MONTHS OF 1992 CONTRIBUTED TO A SHARP DROP IN FULLYEAR REVENUE TO ABOUT 162 MILLION FROM 452 MILLION IN 1991 FOURTHQUARTER SALES WERE UP 5 TO 95 MILLION THE COMPANY SAID A LIFETIME SPOKESMAN SAID THE INCREASE IN FOURTHQUARTER REVENUE ALSO BOOSTED THE COMPANY'S CASH HOLDINGS WHICH TOTALED 175000 AS OF SEPT 30 THE SPOKESMAN SAID FURTHER DETAILS WON'T BE AVAILABLE UNTIL THE COMPANY RELEASES ITS FOURTHQUARTER AND FULLYEAR FINANCIAL RESULTS SEPERATELY LIFETIME SAID TWO OF ITS SUBSIDIARIES WERE NAMED IN A LAWSUIT THAT SEEKS TO ACCELERATE PAYMENTS ON ABOUT 51 MILLION IN DEBT THE SUIT WAS BROUGHT BY ELLIOTT M BRACKETT AN INITIAL INVESTOR IN THE COMPANY HE ACCUSES LIFETIME OF FAILING TO TURN OVER FINANCIAL INFORMATION REQUIRED UNDER A PREVIOUS SETTLEMENT AGREEMENT LIFETIME SAID MR BRACKETT HAS SUED THE COMPANY THREE OTHER TIMES SEEKING TO ACCELERATE PAYMENTS ON THE SAME NOTES ALL OF THE PREVIOUS SUITS WERE SETTLED 9301180125 930118 INTERNATIONAL GERMAN PROBE DELAYS NATION'S MILITARY PACT WITH ESYSTEMS INC A WALL STREET JOURNAL NEWS ROUNDUP ESYSTEMS INC SAID A LONGAWAITED GERMAN MILITARY CONTRACT HAS BEEN DELAYED AT LEAST TWO WEEKS PENDING AN INVESTIGATION BY THE PUBLIC PROSECUTOR IN BONN THE DALLAS DEFENSE ELECTRONICS COMPANY SAID THE GERMAN MINISTRY OF DEFENSE ORDERED THE DELAY THOUGH ESYSTEMS SAID IT HASN'T BEEN CONTACTED BY GERMAN AUTHORITIES AND HAS NO FIRSTHAND KNOWLEDGE OF THE INQUIRY GERMAN PRESS REPORTS SAY THE PROSECUTOR LAUNCHED A CORRUPTION INVESTIGATION FOCUSING ON SEVERAL MINISTRY OFFICIALS AND A RETIRED GENERAL OF THE GERMAN AIR FORCE NO FURTHER DETAILS WERE DISCLOSED ANALYSTS FOR WEEKS HAVE BEEN AWAITING THE SIGNING OF THE GERMAN AIR FORCE CONTRACT WHICH CALLS FOR ESYSTEMS TO SUPPLY ELECTRONICS EQUIPMENT FOR THE EGRETT FAMILY OF SURVEILLANCE PLANES FIRST BOSTON CORP ESTIMATED THAT THE PACT COULD INITIALLY BE VALUED AT 225 MILLION FOR ESYSTEMS AND AS MUCH AS 1 BILLION OVER THE NEXT FIVE TO SEVEN YEARS FOR THE FIRST NINE MONTHS OF 1992 ESYSTEMS REPORTED SALES OF 153 BILLION TRADING IN ESYSTEMS STOCK WAS HALTED ON NEWS OF THE INVESTIGATION FRIDAY THE ISSUE LAST CLOSED DOWN 150 TO 4275 IN NEW YORK STOCK EXCHANGE TRADING IN OTHER DEVELOPMENTS ESYSTEMS SAID IT RECEIVED A 636 MILLION CONTRACT AS PART OF A FEDERAL AVIATION ADMINISTRATION FLIGHT INSPECTION PROGRAM THE COMPANY SAID THE CONTRACT FOR TWO LEARJET 60 INSTRUMENTATION SYSTEMS INCLUDES OPTIONS VALUED AT MORE THAN 400 MILLION THROUGH FISCAL 1993 9301180124 930118 KOREAN ANTIDUMPING DUTIES SEOUL SOUTH KOREA THE CUSTOMS ADMINISTRATION SAID IT WILL SLAP ANTIDUMPING DUTIES OF AS MUCH AS 543 ON PRODUCTS SOLD IN SOUTH KOREA BY 11 CHINESE AND HONG KONG EXPORTERS OF PHOSPHORIC ACIDS AND BY A THAI BALLBEARING MAKER ACCORDING TO THE AGENCY THE EXPORTERS WHICH INCLUDE CHINA NATIONAL CHEMICALS IMPORT & EXPORT CORP AND SHANGHAI CHEMICALS IMPORTS & EXPORTS CORP SOLD THE ACIDS IN SOUTH KOREA AT PRICES 405 TO 468 LOWER THAN IN THEIR HOME MARKETS THE THAI CONCERN NMB HIGHTECH BEARING THAI LTD SOLD BEARINGS FOR VIDEOCASSETTE RECORDERS IN SOUTH KOREA AT 63 BELOW MARKET PRICES IN THAILAND THE AGENCY SAID 9301180123 930118 WHO'S NEWS GRACO PRESIDENT QUITS FOLLOWING DIFFERENCES WITH CHIEF EXECUTIVE MINNEAPOLIS GRACO INC SAID WALTER E WEYLER RESIGNED AS PRESIDENT AND CHIEF OPERATING OFFICER AND AS A DIRECTOR AFTER DIFFERENCES AROSE BETWEEN HIM AND GRACO'S TOP OFFICIAL GRACO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DAVID A KOCH WILL ASSUME THE RESPONSIBILITIES BUT NOT THE TITLES THE 53YEAROLD MR WEYLER HAD HELD DURING THE PAST YEAR MR KOCH SAID GRACO HAS BEEN CONDUCTING A COMPLETE STRATEGIC APPRAISAL OF THE COMPANY AND IT HAS BECOME APPARENT DURING THAT PROCESS THAT WALT AND I HAVE IMPORTANT DIFFERENCES OF PERSPECTIVE AND EMPHASIS WHILE PRAISING MR WEYLER'S SUBSTANTIAL CONTRIBUTIONS TO THE MAKER OF PUMPS AND SPRAYING EQUIPMENT SINCE HE JOINED IT IN 1985 MR KOCH SAID HE AND MR WEYLER HAD JOINTLY CONCLUDED THAT THIS CHANGE IS IN HIS BEST INTERESTS AND THOSE OF THE COMPANY MR WEYLER SAID IN A PREPARED RELEASE THAT IT IS TIME NOW FOR THIS POSITIVE CHANGE 9301180122 930118 FINLAND'S INFLATION RATE FALLS HELSINKI FINLAND THE ANNUAL INFLATION RATE FELL TO 21 IN DECEMBER AND WAS THE LOWEST SINCE 1969 THE CENTRAL STATISTICAL OFFICE SAID THE DECEMBER RATE WAS DOWN FROM 28 THE PREVIOUS MONTH AND 39 IN DECEMBER 1991 THE AGENCY SAID THE RATE FOR 1992 WAS 26 IT SAID THE FALL IN THE INFLATION RATE WAS MAINLY ATTRIBUTED TO A 21 REDUCTION IN HOUSING COSTS IN 1992 THE STATISTICAL OFFICE SAID HEALTHCARE COSTS INCREASED THE MOST BY 76 THE OFFICE SAID 9301180121 930118 CANADA'S TRADE SURPLUS NARROWS OTTAWA CANADA'S MERCHANDISE TRADE SURPLUS NARROWED TO 982 MILLION CANADIAN DOLLARS US768 MILLION IN NOVEMBER FROM C18 BILLION IN OCTOBER SAID STATISTICS CANADA A GOVERNMENT AGENCY EXPORTS DECLINED 2 TO C1366 BILLION FROM C1394 BILLION WHILE IMPORTS ROSE 44 TO C1267 BILLION FROM C1213 BILLION THE US TOOK 79 OF CANADA'S EXPORTS IN NOVEMBER AND SUPPLIED 736 OF CANADA'S IMPORTS 9301180120 930118 DUTCH ECONOMIC OUTLOOK AMSTERDAM ECONOMIC PLANNING CHIEF GERRIT ZALM REAFFIRMED THE GOVERNMENT'S PESSIMISTIC OUTLOOK FOR THE DUTCH ECONOMY SAYING GROWTH AND EMPLOYMENT PROSPECTS MAY IF ANYTHING BE WORSE THAN PREVIOUSLY FORECAST IN TERMS OF ECONOMIC GROWTH AND EMPLOYMENT WE CERTAINLY WOULDN'T WANT TO ADJUST OUR FORECASTS UPWARD MORE LIKELY DOWNWARD MR ZALM HEAD OF THE GOVERNMENT'S CENTRAL PLANNING BUREAU SAID PARTICULARLY IF YOU LOOK AT THE MOST RECENT FIGURES WE'VE HAD IN IT'S CLEAR 1992 WAS A WORSE YEAR THAN WE'D THOUGHT WHEN THE BUREAU ISSUED ITS PREVIOUS ECONOMIC FORECAST IN NOVEMBER MR ZALM SAID HE DIDN'T SPECIFY WHICH ECONOMIC DATA HE WAS REFERRING TO IN NOVEMBER THE BUREAU PREDICTED GROWTH IN DUTCH GROSS DOMESTIC PRODUCT OF 1 AFTER INFLATION THIS YEAR COMPARED WITH AN ESTIMATED 15 FOR 1992 IT ALSO PROJECTED UNEMPLOYMENT WOULD RISE TO 510000 IN 1993 FROM 485000 IN 1992 9301180119 930118 FOREST PRODUCTS START A REBOUND IN SOME AREAS WOOD PRODUCERS SEE GAINS BUT PULP PAPER FIRMS STILL AWAIT RECOVERY BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MORE THAN THREE YEARS AFTER IT STARTED SLUMPING THE NORTH AMERICAN PAPER AND FORESTPRODUCTS INDUSTRY ISN'T OUT OF THE WOODS YET FINANCIALLY SPEAKING THERE ARE A FEW BRIGHT SPOTS AS THE NEW YEAR BEGINS WOOD PRODUCTS ARE GOING STRONG AND NEWSPRINT RECENTLY HAS SHOWN MODEST IMPROVEMENT BUT FOR MOST PULP AND PAPER PRODUCTS THE LONGANTICIPATED RECOVERY STILL HASN'T MATERIALIZED MANY ANALYSTS SAY 1993 WILL SEE THE BEGINNING OF A BROADERBASED IMPROVEMENT IN THE INDUSTRY THANKS PARTLY TO IMPROVING CONSUMER CONFIDENCE IN THE US AND SLOWING CAPACITY INCREASES BUT SOME SAY A NOTABLE UPSWING ISN'T LIKELY BEFORE MIDYEAR AND THEY'RE MINDFUL THAT PREVIOUS HOPES HAVE BEEN DASHED RECOVERY IS INEVITABLE SAYS GEORGE ADLER AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO BUT IT'S BEEN DELAYED AND DELAYED AND DELAYED COMPANIES LIKELY TO REPORT THE STRONGEST EARNINGS IMPROVEMENT FOR THE QUARTER ENDED DEC 31 ARE THOSE WHOSE PRODUCT MIX IS WEIGHTED TOWARD WOOD PRODUCTS PRICES FOR LUMBER PLYWOOD AND OTHER TIMBER PRODUCTS HAVE SURGED IN RECENT MONTHS AS EFFORTS TO PRESERVE THE SPOTTED OWL CONTINUED TO CONSTRAIN TIMBER SUPPLY IN THE NORTHWEST WEATHERRELATED PROBLEMS AND OTHER ENVIRONMENTAL CONCERNS HAVE ALSO CONTRIBUTED TO THE HIGHER PRICES A LOUISIANAPACIFIC CORP INVESTOR RELATIONS OFFICIAL SAYS HE IS COMFORTABLE WITH RECENT ANALYSTS' ESTIMATES THAT THE WOODPRODUCTS MAKER WILL REPORT FOURTHQUARTER PROFIT OF AROUND 73 CENTS A SHARE COMPARED WITH 16 CENTS A YEAR EARLIER SIMILARLY ANALYSTS EXPECT WEYERHAEUSER CO TO REPORT FOURTHQUARTER EARNINGS OF 35 TO 40 CENTS A SHARE COMPARED WITH 13 CENTS IN THE YEAREARLIER QUARTER THE ESTIMATES EXCLUDE NONRECURRING ITEMS FOR PULP AND PAPER PRODUCERS THOUGH THE FOURTHQUARTER RESULTS WILL LOOK MUCH BLEAKER PULP PRICES WHICH ROSE EARLIER IN 1992 PLUMMETED LATE IN THE YEAR WOOD AND PULP PRICES ARE MOVING IN OPPOSITE DIRECTIONS AND WITH UNEXPECTED VELOCITY SAYS THOMAS CLEPHANE AN ANALYST WITH MORGAN STANLEY & CO SINCE LAST YEAR'S THIRD QUARTER PRICES FOR THE BENCHMARK GRADE OF NORTHERN SOFTWOOD PULP HAVE PROBABLY DROPPED ABOUT 100 A METRIC TON WIPING OUT THE INCREASES OF LATE 1991 AND THE FIRST HALF OF 1992 HE SAYS A METRIC TON IS 22046 POUNDS THE MARKET FOR MOST PAPER PRODUCTS HAS ALSO BEEN UNEXPECTEDLY WEAK OF LATE ONE EXCEPTION IS NEWSPRINT WHICH HAD BEEN SEVERELY DEPRESSED BUT HAS RECENTLY SHOWN SOME IMPROVEMENT EVEN SO FEW NEWSPRINT PRODUCERS WILL BE ABLE TO TURN A PROFIT ON THE PRODUCT UNLESS PRICES CONTINUE TO RISE IN 1993 SOME ANALYSTS WORRY THAT MUCH OF THE RECENT IMPROVEMENT IN THE MARKET MAY BE DUE TO PUBLISHERS INCREASING THEIR INVENTORIES FOR VARIOUS REASONS MAKING THE SECTOR VULNERABLE TO THE KIND OF REVERSAL THAT STRUCK PULP MAKERS LAST YEAR STILL THE PAPERINDUSTRY OUTLOOK ISN'T BLEAK IN A PERVASIVE WAY AS IT WAS IN 1990 AND 1991 SAYS LAWRENCE ROSS AN ANALYST WITH PAINEWEBBER INC SOME MARKETS SUCH AS NEWSPRINT HAVE BOTTOMED OUT HE SAYS SOME ANALYSTS SAY THE MARKET FOR UNCOATED WHITE PAPER THE VARIETY USED WIDELY IN OFFICES WILL PICK UP THIS YEAR DESPITE A WEAK 1992 FOURTH QUARTER THEY SAY PLANNED CUTBACKS IN CAPACITY WILL HELP THE SECTOR AS THEY HAVE FOR NEWSPRINT MANY PAPER PRODUCERS ARE REGROUPING FROM MAJOR CAPITAL PROJECTS IN RECENT YEARS AND AREN'T WILLING TO INVEST UNTIL CONDITIONS IMPROVE SAYS MARK DIVERIO OF SHEARSON LEHMAN BROTHERS INC THE INDUSTRY WILL SEE DEMAND GROWING FASTER THAN CAPACITY IN THE NEXT COUPLE OF YEARS HE SAYS BUT WE'RE NOT QUITE THERE YET AN OFFICIAL AT BOWATER INC SAYS ANALYSTS' ESTIMATES THAT THE COMPANY WILL POST A FOURTHQUARTER LOSS OF 40 TO 45 CENTS A SHARE ARE REASONABLE AND INDICATES THE LOSS COULD BE LARGER BECAUSE OF THE HORRENDOUS DROP IN PULP PRICES DURING THE PERIOD THAT COMPARES WITH A PROFIT OF TWO CENTS A SHARE A YEAR EARLIER A CHAMPION INTERNATIONAL CORP SPOKESWOMAN ACKNOWLEDGES THAT THE COMPANY'S FOURTHQUARTER LOSS EXCLUDING NONRECURRING ITEMS WILL BE MUCH WIDER THAN THE FOUR CENTS A SHARE OF A YEAR EARLIER THAT REFLECTS THE PRETTY GRIM MARKET FOR UNCOATED WHITE PAPER DURING THE QUARTER SHE SAYS UNION CAMP CORP WHICH ALSO PRODUCES WHITE PAPER DOESN'T EXPECT ITS FOURTHQUARTER EARNINGS TO MATCH THE 29 CENTS A SHARE POSTED A YEAR EARLIER A COMPANY OFFICIAL INDICATES CANADIAN COMPANIES BATTERED IN THE INDUSTRY'S CYCLICAL SLUMP FINALLY HAVE SOME REASONS FOR GUARDED OPTIMISM MANY ARE NEWSPRINT PRODUCERS SO THEY HAVE BEEN HELPED BY THE RECENT FIRMING IN PRICES TO AROUND 450 US IN EASTERN NORTH AMERICA FROM ABOUT 400 THE RECENT DECLINE IN VALUE OF THE CANADIAN CURRENCY IS ALSO BOLSTERING RESULTS AS IT INCREASES THE NUMBER OF CANADIAN DOLLARS EARNED ON EXPORTS SOME ALSO ARE STARTING TO BENEFIT FROM VARIOUS MEASURES AIMED AT IMPROVING COMPETITIVENESS SUCH AS CLOSING OLDER MILLS AND INCREASING LABOR FLEXIBILITY THERE HAVE BEEN SOME REALLY SIGNIFICANT DECREASES IN OPERATING COSTS SAYS DON ROBERTS OF LEVESQUE BEAUBIEN GEOFFRION INC IN MONTREAL BUSINESS ISN'T GOOD ENOUGH YET FOR THE RED INK TO DISAPPEAR SAYS RAYMOND KILROY AN ANALYST WITH NESBITT THOMSON INC IN TORONTO BUT MOST CANADIAN COMPANIES WILL PROBABLY REPORT NARROWER LOSSES FOR THE FOURTH QUARTER THAN FOR THE THIRD PERIOD OR THE YEAREARLIER QUARTER HE SAYS 9301180118 930118 LETTERS TO THE EDITOR SCHOOL FAILURE STRIKES HOME ALL THE MONEY YOU CAN THROW AT THE EDUCATION PROBLEM WILL NOT CURE IT AS LONG AS THE FAILURE OF THE FAMILY TO TEACH DISCIPLINE CONTINUES BLANT HURT'S JAN 6 EDITORIALPAGE ARTICLE YOUNG BILL CLINTON AND SCHOOL CHOICE DID NOT EMPHASIZE ENOUGH THE KEY STATEMENT OF LITTLE ROCK RESIDENT MAGGIE JACKSON ABOUT THE REACTION OF HER SCHOOLAGE SON TO DISCIPLINE IN PUBLIC SCHOOL HE KNEW ALL I'D GET WOULD BE A PHONE CALL THAT WOULD MAKE NO DIFFERENCE THE OPERATIVE PHRASE HERE IS MAKE NO DIFFERENCE THAT IS NOT A FAILURE OF ANY SCHOOL SYSTEM BUT OF THE FAMILY UNIT AS WE ONCE KNEW IT A MAJOR DETERRENT TO ACTING UP IN SCHOOL TO MY CONTEMPORARIES AND ME WAS THE NOTE HOME THIS WOULD STRIKE FEAR IN ALL BUT THE MOST INCORRIGIBLE OF CLASSMATES AND KEPT MOST OF US OUT OF THE PRINCIPAL'S OFFICE IN MY LATER YEARS AS AN ARMY OFFICER I COULD DISCERN QUITE EASILY THOSE YOUNG SOLDIERS FROM WELLDISCIPLINED HOUSEHOLDS IN KOREA AND LATER VIETNAM WE ALL SAW THE EFFECT OF THE BREAKDOWN OF DISCIPLINE IN OUR SOCIETY WHEN MY OWN SIX CHILDREN WENT OFF TO SCHOOL EACH DAY THEY WERE REMINDED THAT THE ONLY JOB OF THE SCHOOL AND THEIR TEACHERS WAS TO INSTRUCT THEM NOT TO WASTE THE CLASSES' TIME WITH INTERRUPTIONS CAUSED BY UNRULY ACTIONS AND THAT THEIR PARTICIPATION IN ANY SUCH ACTIVITIES WOULD BE MET WITH DISFAVOR AND SANCTIONS AT HOME THIS POLICY CONTINUED EVEN WHEN I BECAME A SINGLE PARENT IT SEEMS THAT WE HAVE RELEGATED THE SCHOOL TO THE SAME STATUS AS THE TV A BABY SITTER CHILDREN WILL SPEND A REPORTED 10000 HOURS IN FRONT OF THE TV SCREEN BEFORE THEY START SCHOOL THIS IS MORE TIME THAN THEY WILL SPEND IN CLASSES FOR THE NEXT 12 YEARS WHERE THEN IS THE PARENTS' INFLUENCE SEEN IN THE DEVELOPMENT OF CHARACTER IS MEALTIME EVEN A FAMILY FORUM ANY LONGER OR HAS THAT BEEN RELEGATED TO THE FASTFOOD EMPORIUMS I AM INUNDATED WITH ARTICLES AND TV SHOWS ABOUT THE SINGLEPARENT FAMILIES THAT ARE MAINLY CONCERNED WITH WHAT TO WEAR AND WHAT TO DRIVE TO GET THEM TO THE MALL AND THE DIFFICULTY IN OBTAINING MEANINGFUL SEX BY EITHER THE PARENT OR THE CHILDREN WHERE ARE THOSE PRIMETIME SHOWS WITH THE MESSAGE OF RESPONSIBILITY TO FAMILY SCHOOL AND COMMUNITY IF IN FACT WE ARE WHAT WE EAT THEN WE MUST ALSO BECOME WHAT WE WATCH AND LISTEN TO ESPECIALLY WHEN WE CONSIDER WHAT IS FED TO OUR MINDS THROUGH THE TV TUBE AND OTHER FORCES OUTSIDE THE FAMILY UNIT IT'S TIME TO TAKE BACK THE HIGH GROUND IN THE DEVELOPMENT OF OUR CHILDREN AND RESTORE THE FAMILY TO THE PREEMINENCE IT ONCE HELD IN THE MINDS AND HEARTS OF ALL OF US WHO I'M SURE CAN STILL LOOK BACK ON MEMORABLE TIMES IN OUR OWN FAMILY LIVES WE ARE WRITING IN RESPONSE TO YOUR JAN 6 ASIDES CHELSEA'S MORNINGS ABOUT THE CLINTON FAMILY'S CHOICE OF THE SIDWELL FRIENDS SCHOOL FOR THEIR DAUGHTER CHELSEA YOU DESCRIBE SIDWELL AS BEING A HAVEN FOR CHILDREN OF THE CAPITAL'S RICH AND FAMOUS A WORLD AWAY FROM THE METAL DETECTORS AND GANGS IN THE CITY'S PUBLIC SCHOOLS AS STUDENTS OF SIDWELL WHO ARE NEITHER RICH NOR FAMOUS WE WERE BOTH SURPRISED AND OFFENDED BY YOUR STATEMENT YOU MAKE SIDWELL OUT TO BE AN EXCLUSIVE COUNTRY CLUB WITH TEACHERS YOU FAILED TO MENTION THE CULTURAL RACIAL AND ECONOMIC DIVERSITY AMONG OUR STUDENTS THAT IS NOT PRESENT IN MANY PRIVATE SCHOOLS OUR SCHOOL IS ALSO COMMITTED TO COMMUNITY SERVICE OPENNESS OF SPEECH AND THOUGHT THE ACCEPTANCE OF OTHERS' IDEAS AND OPINIONS AND STRONG QUAKER VALUES THE SCHOOL IS ALSO KNOWN FOR ITS LIBERAL AND COMPASSIONATE STUDENTS NOT THE RICH MINDLESS SNOBS YOUR EDITORIAL BRINGS TO MIND MR CLINTON BY ELECTING TO SEND CHELSEA TO A PRIVATE SCHOOL IS EXERCISING EDUCATIONAL CHOICE IN THE MOST OBVIOUS MANNER USING HIS TAXPAID SALARY TO MAKE IT POSSIBLE DON'T LET HIM GET AWAY WITH THIS WITHOUT PRESSURING HIM TO SUPPORT THE SAME TYPE OF EDUCATIONAL CHOICE FOR THE REST OF THE COUNTRY NOT JUST THE WEALTHY THIS IS DOUBLY IMPORTANT SINCE EXCESSIVE TAXATION HAS TAKEN AWAY THE MEANS FOR MANY TO HAVE THIS OPTION OTHERWISE THE EDUCATIONAL CHOICES FOR CHILDREN OF SENATORS REPRESENTATIVES AND OTHER GOVERNMENT OFFICIALS WHOSE SALARIES ARE PAID BY THE TAXPAYERS SHOULD ALSO BE PUBLICIZED EXPOSING THOSE WHO OPERATE UNDER A DOUBLE STANDARD BY EXERCISING EDUCATIONAL CHOICE FOR THEIR CHILDREN WHILE DENYING IT TO OTHERS PITY THOSE WHO DON'T HAVE THE FINANCIAL MEANS TO MAKE THE SAME TYPE OF CHOICE FOR THEIR CHILDREN PITY THE CHILDREN OF CHICAGO THE CHICAGO PUBLIC SCHOOL SYSTEM SPENDS MORE THAN TWICE AS MUCH PER PUPIL AS DO LOCAL PAROCHIAL SCHOOLS DRAINING EDUCATION DOLLARS YET THE EDUCATIONAL PRODUCT IS ABYSMAL BY CONTRAST CHICAGO'S PAROCHIAL SCHOOLS WHICH HAVE A GOOD EDUCATIONAL RECORD AND ARE AVAILABLE TO ALL WHO CAN AFFORD THEIR TUITION WITHOUT REGARD TO RACE RELIGION SEX OR OTHER IMPERMISSIBLE FORMS OF DISCRIMINATION ARE BEYOND THE FINANCIAL MEANS OF MANY AND ARE FORCED TO CLOSE WITH EDUCATIONAL CHOICE THIS SITUATION COULD BE REVERSED GIVE THE CHILDREN A BREAK GIVE THEM EDUCATIONAL CHOICE WITH VOUCHERS TO USE AT THE BEST SCHOOLS THEY CAN FIND ANYTHING LESS IS INSANITY MR HURT SUGGESTS THAT THE DECISION BY VIRGINIA KELLEY BILL CLINTON'S MOTHER TO SEND YOUNG BILL TO A CATHOLIC SCHOOL SOMEHOW REPRESENTS A FREEDOM OF CHOICE UNAVAILABLE TO OTHER PARENTS THIS IS SIMPLY NOT TRUE TENS OF THOUSANDS OF PARENTS ALL OVER THE COUNTRY INCLUDING THOSE IN THE INNER CITIES AND OTHERS OF MODEST MEANS AS VIRGINIA KELLEY WAS CHOOSE TO SEND THEIR CHILDREN TO PRIVATE SCHOOLS EACH YEAR NO ONE HAS PROPOSED REPEALING THAT FREEDOM TO CHOOSE MOST OF THE SCHOOLCHOICE DEBATE IS NOT ABOUT THE ABILITY TO CHOOSE AMONG SCHOOLS IT IS ABOUT THE ABILITY TO PAY FOR THOSE CHOICES SCHOOLCHOICE ADVOCATES WOULD LIKE THE GOVERNMENT TO SUBSIDIZE THEIR EDUCATIONAL CHOICES IRONICALLY THOUGH WHEN THE SUBJECT TURNS TO HEALTH CARE MOST SCHOOLCHOICE IDEOLOGUES SUDDENLY ADOPT A DIFFERENT POSTURE ARGUING THAT THE GOVERNMENT SHOULD NOT BE MADE RESPONSIBLE FOR SUBSIDIZING PEOPLE'S HEALTHCARE CHOICE THE ONLY TRUE CHOICE ISSUE IN EDUCATION IS IN THE PUBLIC SCHOOLS PARENTS CAN CHOOSE TO OPT FOR PRIVATE SCHOOL AT ANY TIME BUT FEW CAN CHOOSE TO ENROLL THEIR CHILDREN IN A PUBLIC SCHOOL OUTSIDE THEIR DISTRICT BILL CLINTON HAS LONG SUPPORTED PUBLICSCHOOL CHOICE AND WAS ONE OF THE FIRST AND FEW GOVERNORS TO ENACT LEGISLATION PERMITTING PARENTS TO SEND THEIR CHILDREN TO ANY PUBLIC SCHOOL IN THE STATE HIS OPPOSITION TO PRIVATESCHOOL VOUCHERS IS NOT AS MR HURT CLAIMS INCONSISTENT WITH HIS DECISION TO SEND CHELSEA TO PRIVATE SCHOOL OR WITH HIS OWN PRIVATESCHOOL UPBRINGING BILL CLINTON IS NOT SUGGESTING PARENTS RELINQUISH THEIR RIGHT TO CHOOSE PRIVATE SCHOOL HE SIMPLY DOESN'T WANT TO FINANCE THAT CHOICE IF WE'RE GOING TO HAVE AN HONEST DEBATE ABOUT IMPROVING EDUCATION IN THIS COUNTRY LET'S NOT PLAY GAMES OF EMOTION AND SEMANTICS LET'S TALK ABOUT THE REAL ISSUES ACCESS TO QUALITY EDUCATION 9301180117 930118 SPAIN'S CONSUMER PRICE INDEX MADRID SPAIN'S CONSUMER PRICE INDEX ROSE 03 IN DECEMBER FROM NOVEMBER THE NATIONAL STATISTICS INSTITUTE SAID THE INSTITUTE SAID THE INCREASE BROUGHT THE YEARTOYEAR INFLATION RATE TO 54 IN DECEMBER FROM 51 IN NOVEMBER 9301180116 930118 FORD SEEKS WORKERS IN KENTUCKY LOUISVILLE KY FORD MOTOR CO WILL BE TAKING APPLICATIONS FOR ABOUT 600 NEW HOURLY JOBS AT ITS KENTUCKY TRUCK PLANT THE JOBS WILL BE AMONG ABOUT 1400 TO BE PROVIDED BY A 650 MILLION ONE MILLIONSQUAREFOOT EXPANSION AND RETOOLING OF THE PLANT WHICH ASSEMBLES HEAVY TRUCKS THE 600 NEW EMPLOYEES WILL START WORK IN JUNE 9301180115 930118 FRENCH OIL OUTPUT DECLINES PARIS FRENCH OIL OUTPUT CONTINUED ITS DECLINE IN 1992 DROPPING 24 TO 29 MILLION METRIC TONS THE INDUSTRY MINISTRY SAID OLIVIER APPERT DIRECTOR OF HYDROCARBON ACTIVITIES SAID THAT BARRING ANY NEW DISCOVERIES PRODUCTION WILL PROBABLY CONTINUE TO DECLINE THIS YEAR THE PARIS BASIN FRANCE'S MAIN PRODUCTION REGION CONTRIBUTED 65 OF THE TOTAL WITH AQUITAINE ACCOUNTING FOR THE REST INVESTMENTS IN THE FRENCH OIL PRODUCTION SECTOR DECLINED 17 LAST YEAR TO 615 MILLION FRANCS 1118 MILLION AND ARE EXPECTED TO DECLINE TO 550 MILLION FRANCS THIS YEAR I THINK THAT 1993 WILL BE ANOTHER BAD YEAR BECAUSE OIL PRICES AREN'T ATTRACTIVE AND COMPANIES AREN'T MOTIVATED TO INVEST THE DIRECTOR SAID FRENCH NATURAL GAS PRODUCTION FELL 34 LAST YEAR TO 47 BILLION CUBIC METERS A LEVEL THAT IS EXPECTED TO STABILIZE THIS YEAR 9301180114 930118 INTERNATIONAL UDOKAN MINE WINS HUGE COPPER RIGHTS RUSSIAN ROCKEFELLER' TRIES TO KEEP PROFITS IN REGION BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL NAMINGA RUSSIA IN A HIGH MOUNTAIN VALLEY IN THE CENTER OF SIBERIA LESS THAN 200 MILES NORTH OF THE MONGOLIAN BORDER THE SHADOWS ARE SO LONG ON SOME DAYS THAT THE LOW WINTER SUN NEVER REACHES THE TINY SETTLEMENT OF NAMINGA THE OVERALL SCENE IS BLEAK AND POVERTYSTRICKEN BUT WHEN ANDREI CHUGUYEVSKY LOOKS UP AT THE SURROUNDING UDOKAN MOUNTAIN PEAKS HE SEES A FORTUNE FOR HIMSELF AND FOR RUSSIA MR CHUGUYEVSKY IS A LITTLEKNOWN RUSSIAN ENTREPRENEUR WHO TOOK ON SOME OF THE GIANTS IN WESTERN MINING AND WON THE PRIZE IS THE LICENSE TO DEVELOP THE UDOKAN MINE ONE OF THE WORLD'S LARGEST UNEXPLOITED RESERVES OF COPPER ON FRIDAY AFTER MONTHS OF COMPETITION MR CHUGUYEVSKY'S UDOKAN MINING CO IN WHICH RUSSIANS OWN A MAJORITY BEAT OUT AUSTRALIA'S GIANT BROKEN HILL PROPRIETARY CO FOR THE RIGHT TO EXPLOIT THE COPPER LODE MR CHUGUYEVSKY IS NO OLDTIME COMMUNIST PARTY BOSS OR FORMER HEAD OF A STATERUN ENTERPRISE TRYING TO CHANGE HIS STRIPES HE IS A RUSSIAN ROCKEFELLER LEAN AND DARKHAIRED WITH INTENSE BROWN EYES AND DELICATE FEATURES THE 34YEAROLD MR CHUGUYEVSKY STARTED IN PRIVATE BUSINESS WHEN IT WAS STILL ILLEGAL IN THE SOVIET UNION HIS DREAMS GREW FROM SMALLSCALE IMPORTING TO BUILDING A MINING EMPIRE NOW MR CHUGUYEVSKY WORKS WITH INVESTORS AND ENGINEERS FROM EUROPE ASIA AND AMERICA HIS HAND IN NOT ONLY IN COPPER BUT ALSO COAL GOLD DIAMONDS AND OIL AS SET AS HE IS ON BECOMING RUSSIA'S BIGGEST DEVELOPER HE IS EQUALLY DETERMINED THAT RUSSIA HOLD ONTO THE PROPERTY RIGHTS AND MOST OF THE PROFITS AND JOBS THAT WILL COME FROM DEVELOPING ITS NATURAL RESOURCES THE MONEY MUST BE USED IN THE RUSSIAN ECONOMY HE SAYS THIS WAS ONE OF OUR MAIN GOALS THE UDOKAN MINE IS JUST ONE OF MANY LUCRATIVE PROJECTS IN WHICH RUSSIANS ARE TRYING TO PREVENT FOREIGNERS FROM GAINING CONTROL OVER RESOURCES OR THE MARKET IT IS ALREADY EVIDENT IN OTHER INDUSTRIES ONE EXAMPLE IS THE CONTINUING ATTEMPT TO BLOCK FOREIGN BANKS FROM EQUAL ACCESS TO RETAIL BANKING ANOTHER IS THE RECENT OVERTURNING IN FAVOR OF A RUSSIAN GROUP OF A SOVIET AGREEMENT TO ALLOW A FOREIGN CONSORTIUM TO DEVELOP A MAJOR GAS FIELD IN THE BARENTS SEA DOZENS OF MAJOR ENTERPRISES IN OUR COUNTRY HAVE AN INTEREST IN DEVELOPING LARGE MINERAL AND FUEL DEPOSITS PRESIDENT BORIS YELTSIN TOLD RUSSIAN INDUSTRY LEADERS LATE LAST YEAR WE MUST SUPPORT THEM INSTEAD OF GIVING ALL THAT OVER ONLY TO FOREIGNERS THE GOVERNMENT HAS KNOWN SINCE 1949 ABOUT THE TREASURE HIDDEN IN THE CRAGGY UDOKAN MOUNTAINS WHICH SHOULD BE ABLE TO PROVIDE AT LEAST 400000 TONS OF COPPER ANNUALLY UDOKAN'S DEVELOPMENT WAS INCLUDED ON ONE AFTER ANOTHER OF THE SOVIET STATE'S FIVE YEAR PLANS BUT THE VARIOUS MINISTRIES INVOLVED COULDN'T COORDINATE AND NO SINGLE MINISTRY COULD HANDLE SUCH A LARGE PROJECT ALONE THAT KIND OF THINKING DIDN'T STOP MR CHUGUYEVSKY WHO GREW UP IN A VILLAGE OF 2000 PEOPLE 120 MILES FROM CHITA CITY FROM TACKLING THE PROJECT MR CHUGUYEVSKY WHO HAD BEEN A HISTORY PROFESSOR TOOK HIS FIRST STAB AT BUSINESS IN 1983 YEARS BEFORE SOVIET LEADER MIKHAIL GORBACHEV INTRODUCED ECONOMIC REFORMS MR CHUGUYEVSKY AND A COUPLE OF FRIENDS CREATED AND SOLD A HIGHTECH SYSTEM FOR INTERNAL COMMUNICATIONS TO ENTERPRISES IN THE CHITA DISTRICT IN A COUNTRY WHERE BUSY PHONES AND BROKEN LINES ARE THE NORM BUYERS WERE WILLING TO PAY A LOT FOR THE DEVICES THE BUSINESS WAS WILDLY SUCCESSFUL BUT SO MUCH SUCCESS CAUGHT THE EYE OF OFFICIALS AND MR CHUGUYEVSKY SPENT A YEAR IN JAIL WHILE THEY INVESTIGATED CHARGES THAT THE COMPANY OVERCHARGED FOR ITS EQUIPMENT THEY COUNTED THE NUMBER OF BUTTONS AND LIGHTS AND THE LENGTH OF THE WIRE INSIDE THE DEVICE AND CAME UP WITH A PRICE NEVER CONSIDERING THE VALUE OF THE TECHNOLOGY HE SAYS WITH A CHUCKLE AFTER HE GOT OUT HE MOVED TO MOSCOW AND GOT IN ON THE RAGE OF THE MOMENT IMPORTING COMPUTERS BY THEN PERESTROIKA WAS UNDER WAY THE CHARGES AGAINST HIM WERE DROPPED AND HIS BUSINESS GREW QUICKLY MR CHUGUYEVSKY STARTED REFITTING OIL PROCESSING PLANTS AND EXPORTING OIL PRODUCTS IN TWO YEARS HE HAD AMASSED ENOUGH CAPITAL TO BE A FOUNDING MEMBER OF TWO OF THE LARGEST RUSSIAN COMMERCIAL BANKS PROMSTROIBANK AND ELEKTROBANK MR CHUGUYEVSKY'S PRIVATE COMPANY ARTER GROUP DOESN'T DISCLOSE ITS CORPORATE BALANCE SHEET BUT HE ESTIMATES 1992 SALES EXCEEDED FIVE BILLION RUBLES ABOUT 11 MILLION AT CURRENT EXCHANGE RATES AND WHILE MR CHUGUYEVSKY HIMSELF LIVES A FAIRLY SPARTAN EXISTENCE EVIDENCE OF WEALTH PERMEATES HIS BUSINESS IN A COUNTRY WHERE THE AVERAGE MONTHLY SALARY IS NOW 5500 RUBLES HE TALKS EASILY ABOUT LENDING A MILLION RUBLES TO A COLLEAGUE HE PAYS 200000 A YEAR TO RENT HIS OFFICES IN MOSCOW IN AN EXCLUSIVE DACHA SETTLEMENT ONCE OCCUPIED BY TOP MEMBERS OF THE COMMUNIST PARTY CENTRAL COMMITTEE HE SUPPORTS A FLEET OF 10 MERCEDES SEDANS FOR STAFF AND VISITORS OTHER RUSSIAN BUSINESSMEN SAY MR CHUGUYEVSKY STANDS OUT FROM A GROWING BAND OF YOUNG RUSSIAN ENTREPRENEURS FOR HIS BIG IDEAS AND HIS ABILITY TO MEET OBLIGATIONS ON SCHEDULE MR CHUGUYEVSKY'S APPROACH TO COPING WITH THE CHAOS THAT THWARTS SO MANY OTHERS IN RUSSIA TODAY DON'T PLAN TOO FAR AHEAD BECAUSE THINGS CAN CHANGE TOO MUCH BUT YOU MUST BE ABLE TO REACT QUICKLY MR CHUGUYEVSKY HAS IMPRESSED COLLEAGUES FAR BEYOND RUSSIA'S BORDERS HE'S VERY WELL CONNECTED AND KNOWS WHO HE NEEDS TO KNOW SAYS TERRY O'KANE VICE PRESIDENT AND PROJECT DIRECTOR AT THE SAN FRANCISCOBASED ENGINEERING GIANT FLUOR DANIEL WRIGHT MINING & METALS WHICH HAS DONE STUDIES FOR UDOKAN MINING CO HE'S GOT AN ENTREPRENEURIAL FLAIR IT WAS IN 1989 THAT MR CHUGUYEVSKY FIRST TOOK UP THE QUESTION OF HOW TO GET AT UDOKAN'S ESTIMATED 21 MILLION METRIC TONS OF COPPER HE FIRST WORKED TO BUILD CONFIDENCE AMONG LOCAL AUTHORITIES WHO HAD HEARD TOO MANY PROMISES AND DIDN'T TRUST PRIVATE BUSINESSMEN IN THE SPRING OF 1990 HE MET EDWARD WONG A 72YEAROLD HONG KONGBORN ENTREPRENEUR WITH 50 YEARS OF EXPERIENCE IN SHIPPING REAL ESTATE AND PROJECT FINANCING NOW A NEW YORKER MR WONG BELIEVES THAT INTERNATIONAL BUSINESS WORKS BEST WHEN IT ENRICHES THE LOCAL POPULATION AFTER TWO DAYS OF TALKS THEY HAD A FRAMEWORK FOR UDOKAN MINING CO IN WHICH MR WONG'S HOLDING COMPANIES OWN 45 MR CHUGUYEVSKY'S ARTER GROUP 35 THE CHITA GEOLOGICAL COMMITTEE 15 AND THE CHITA GOVERNMENT THE REMAINING 5 WITHOUT BILLIONS OF DOLLARS OF ASSETS BEHIND THEM MR WONG AND MR CHUGUYEVSKY NEEDED A GUARANTEED MARKET BEFORE THEY COULD RAISE WESTERN COMMERCIAL FINANCING FOR THE PROJECT WHICH UDOKAN MINING CO ESTIMATES AT 1 BILLION TO 2 BILLION MR WONG HEADED STRAIGHT FOR CHINA WHICH USES SOME 800000 TON OF COPPER A YEAR A THIRD OF IT IMPORTED STATEOWNED CHINA NONFERROUS METALS AGREED TO BUY AT LEAST 200000 TONS OF UDOKAN COPPER A YEAR FOR 25 YEARS AT PREVAILING LONDON METALS EXCHANGE PRICES OR AT LEAST 350 MILLION A YEAR MR WONG ALSO SIGNED A CONTRACT WITH ALLEN & CO A NEW YORK INVESTMENT BANK TO RAISE CAPITAL AND HE HIRED FLUORDANIEL TO DO A PREFEASIBILITY STUDY BUT THEN THE GOVERNMENT ANNOUNCED DETAILS IN AUGUST FOR AN INTERNATIONAL COMPETITION FOR THE RIGHT TO DEVELOP THE UDOKAN PROJECT SUDDENLY MR CHUGUYEVSKY'S CLEAR SHOT AT THE DEAL TURNED INTO A CONTEST AGAINST AT LEAST SEVEN OF THE WORLD'S LEADING MINING COMPANIES INCLUDING BHP AND BRITAIN'S RTZ CORP HE AND MR WONG FIRST HAD TO CONVINCE THE GOVERNMENTS OF RUSSIA AND THE CHITA REGION WHICH WERE TO MAKE THE DECISION JOINTLY THEY FRANKLY DOUBTED THAT ANY RUSSIAN ORGANIZATION COULD COME UP WITH THE NECESSARY TECHNOLOGY AND CASH BUT MR CHUGUYEVSKY OVERCAME THAT WITH A DISPLAY OF WESTERN CAPABILITIES AND RUSSIAN SENSIBILITIES UDOKAN MINING WON OVER CHITA AREA RESIDENTS WITH PROMISES TO EMPLOY ROAD BUILDERS AND TRUCKERS AND BY SAYING IT EXPECTS TO BRING 4000 JOBS TO THE REGION THE COMPANY ALSO PROMISED TO SPEND CONSIDERABLE SUMS TO IMPROVE LOCAL CONDITIONS THE REGIONAL GOVERNMENT WILL RECEIVE A 15 MILLION BONUS IMMEDIATELY MR WONG WILL PAY 5 MILLION ANNUALLY FOR 10 YEARS INTO A REGIONAL PUBLIC CHARITY FUND AND IN ADDITION TO 5 ROYALTIES AND THE SHARE OF PROFITS COMING TO THE REGION AS A SHAREHOLDER IN UDOKAN MINING THE COMPANY WILL PAY THE LOCAL GOVERNMENT A FURTHER 10 OF THE ESTIMATED 200 MILLION ANNUAL PROFIT EACH YEAR THE COMPANY ALSO WILL HELP TO BUILD FACTORIES TO PROVIDE JOBS FOR WOMEN AND TO COMMERCIALIZE REGIONAL CRAFT TRADITIONS OF MINORITIES WHO NOW HUNT IN THE COPPER MINING AREA THIS IS IN THE SPIRIT OF SOCIALISM WITH A HUMAN FACE MR CHUGUYEVSKY SAYS WINNING OVER THE RUSSIAN CENTRAL GOVERNMENT WAS MORE COMPLEX MR CHUGUYEVSKY HELPED TO ORGANIZE 10 OF THE COUNTRY'S LARGEST AND MOST CAPABLE FACTORIES AND INSTITUTES INTO THE RUSSIAN INDUSTRIAL CONSORTIUM AND PLEDGED TO USE THEM FOR EQUIPMENT AND INFRASTRUCTURE WHEREVER POSSIBLE MR CHUGUYEVSKY SAID UDOKAN MINING WOULD USE RUSSIAN EQUIPMENT AND WORKERS MORE THAN ANY FOREIGN COMPETITOR COULD BECAUSE IT WOULDN'T RELY ON TIED LOANS FROM FOREIGN EXPORT BANKS IN THE END THEIR INDUCEMENTS WON OUT BUT EVEN BEFORE THE DUST HAS SETTLED FROM FRIDAY'S ANNOUNCEMENT MR CHUGUYEVSKY'S FERTILE MIND IS RACING AHEAD TO HIS NEXT PROJECTS COAL MINES IN ABSAD WHERE EXCAVATION IS UNDER WAY AND A TENDER APPLICATION TO DEVELOP A GOLD DEPOSIT NEAR IRKUTSK HE IS ALSO WORKING ON A DEVELOPMENT BID FOR OIL IN TURKMENISTAN AND HE TRAVELS SOON TO SOUTH AFRICA TO DISCUSS DIGGING AND MARKETING RUSSIAN DIAMONDS RISK FEEDS THE BRAIN HE SAYS THIS IS POSSIBLE ONLY HERE AND TODAY BECAUSE NOW WE'RE BUILDING A NEW RUSSIAN ECONOMY WE HAVE TO MAKE THE MOST OF IT 9301180113 930118 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED THREE NEW LISTINGS INCLUDING ONE INITIAL PUBLIC OFFERING THE AMERICAN STOCK EXCHANGE ANNOUNCED TWO AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED THREE THE NEW YORK STOCK EXCHANGE BEGAN TRADING WILLIAMS COAL SEAM GAS ROYALTY TRUST TULSA OKLA AN OIL AND GAS INCOME TRUST UNDER WTU THE BIG BOARD ALSO BEGAN TRADING UNDER THE SYMBOL PDP IN PARKER & PARSLEY PETROLEUM CORP MIDLAND TEXAS AN OIL AND GAS CONCERN THAT PREVIOUSLY TRADED ON THE AMEX AND UNITED AMERICAN HEALTHCARE CORP SYMBOL UAH A DETROITBASED HEALTHCARE SYSTEMS MANAGEMENT AND ADMINISTRATIVE SERVICES CONCERN THAT PREVIOUSLY TRADED OVER THE COUNTER THE AMERICAN STOCK EXCHANGE BEGAN TRADING INTERTEL COMMUNICATIONS INC ITR A DENVERBASED TELECOMMUNICATIONS CONCERN THAT MOVED UP FROM THE EMERGING COMPANY MARKETPLACE TO THE PRIMARY MARKET AND LASER TECHNOLOGY INC ENGLEWOOD COLO A MAKER OF LASERBASED SPEED AND DISTANCEMEASUREMENT INSTRUMENTS USED FOR SPACE MISSIONS AND BY LAW ENFORCEMENT AGENCIES UNDER LSR E AND LSRWI LASER TECHNOLOGY PREVIOUSLY TRADED OVER THE COUNTER THE NATIONAL MARKET SYSTEM BEGAN TRADING AMCOR LTD AMCRY SOUTH MELBOURNE AUSTRALIA A FOREST PRODUCTS CONCERN PREVIOUSLY TRADED ON THE PINK SHEETS APPLIANCE RECYCLING CENTERS OF AMERICA INC MINNEAPOLIS A RECYCLING SERVICES CONCERN UNDER ARCI AND CANTERBURY EDUCATIONAL SERVICES INC MEDFORD NJ AN OPERATOR OF VOCATIONAL SCHOOLS UNDER SKIL APPLIANCE RECYCLING AND CANTERBURY BOTH MOVED UP FROM THE NASDAQ LISTINGS FOR SMALLCAPITALIZATION STOCKS THE AMEX BEGAN TRADING OPTIONS ON PYXIS CORP SAN DIEGO THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING LEAPS OR LONGTERM EQUITY ANTICIPATION SECURITIES WHICH HAVE LONGER TERMS THAN REGULAR STOCK OPTIONS ON CONSOLIDATED STORES CORP PLACER DOME INC AND SPRINT CORP 9301180112 930118 INTEGRA ACQUIRES EQUIMARK CORP PITTSBURGH INTEGRA FINANCIAL CORP COMPLETED ITS ACQUISITION OF EQUIMARK CORP EQUIMARK'S BANKING UNIT EQUIBANK IS NOW A WHOLLY OWNED UNIT OF INTEGRA IT WILL OPERATE AS A SEPARATE BANK UNTIL ITS MERGER WITH INTEGRA BANK/PITTSBURGH WHICH IS SCHEDULED FOR APRIL 23 INTEGRA'S STOCK HAS BEEN TRANSFERRED FROM NASDAQ TO THE NEW YORK STOCK EXCHANGE WHERE IT WILL TRADE UNDER THE SYMBOL ITG BEGINNING TODAY 9301180111 930118 CREDIT MARKETS BOND MARKET IS STILL HUNGRY AFTER FEAST BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVEN AFTER FEASTING ON A BANQUET OF NEW CORPORATE BONDS SERVED TO THEM IN THE PAST TWO WEEKS INVESTORS STILL SEEM TO HAVE AN APPETITE FOR MORE WITH THE LONGTERM TREASURY BOND YIELD BACK DOWN TO 735 FRIDAY AND SHORTTERM INTEREST RATES DROPPING SHARPLY IN THE PAST TWO WEEKS MORE CORPORATE TREASURERS ARE LINING UP TO OFFER DEBT AND INVESTORS ARE SUFFICIENTLY RECEPTIVE THAT UNDERWRITERS SAY JANUARY'S CORPORATE DEBT DELUGE COULD ECLIPSE THE PREVIOUS MONTHLY RECORD OF 3681 BILLION SET IN JANUARY LAST YEAR IN THE FIRST 10 TRADING DAYS OF THIS MONTH CORPORATIONS SOLD 2416 BILLION OF NEW BONDS UP FROM 218 BILLION A YEAR EARLIER LAST WEEK CORPORATIONS MADE REGULATORY FILINGS TO OFFER NEARLY 8 BILLION OF NEW DEBT SECURITIES THESE INCLUDED A 2 BILLION SHELF FILING BY TIME WARNER INC A 3 BILLION SHELF OFFERING BY FORD MOTOR CO'S FORD MOTOR CREDIT CO UNIT AND A 1 BILLION SHELF OFFERING BY CORESTATES CAPITAL CORP A UNIT OF CORESTATES FINANCIAL CORP WHILE MOST OF THESE SOCALLED SHELF FILINGS CAN BE ISSUED AT ANY TIME MANY OF THE COMPANIES ARE LIKELY TO UNLEASH THEIR DEALS SOON ANALYSTS SAY MANY CORPORATE TREASURERS SAY INTEREST RATES COULD RISE SOON AFTER PRESIDENTELECT CLINTON TAKES OFFICE WEDNESDAY SO THEY'RE RUSHING TO PULL THE TRIGGER ON THEIR BOND OFFERINGS AS FAST AS THEY CAN WE THOUGHT THAT IT WAS MORE LIKELY FOR LONGTERM RATES TO GO UP THAN TO COME DOWN EXPLAINED JOHN SARGENT TREASURER OF DU PONT CO WHICH SOLD 300 MILLION OF 30YEAR BONDS EARLY IN THE MONTH AT A YIELD OF 797 063 PERCENTAGE POINT ABOVE THE YIELD ON THE BENCHMARK 30YEAR TREASURY BOND GENERALLY SUCH A FLOOD OF SECURITIES WOULD PUT SOME PRESSURE ON YIELDS AS UNDERWRITERS BOOST THEM TO ATTRACT INVESTOR INTEREST AMID A SEA OF OTHER NEW DEALS BUT DEMAND HAS BEEN SO STRONG THAT YIELDS HAVE FALLEN RELATIVE TO THOSE ON COMPARABLE TREASURY NOTES AND BONDS ACCORDING TO BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP THE YIELD GAP BETWEEN MOST RECENT NEW ISSUES AND COMPARABLE TREASURYS HAS NARROWED SIGNIFICANTLY A 500 MILLION OFFERING OF 30YEAR BONDS BY TELECOMMUNICATIONS INC EARLIER THIS MONTH WAS PRICED BY FIRST BOSTON CORP TO YIELD 929 ABOUT 195 PERCENTAGE POINTS ABOVE THE YIELD ON 30YEAR TREASURY BONDS BUT BY FRIDAY AFTERNOON SAYS MS KENWORTHY THOSE BONDS WERE TRADING ONLY 178 PERCENTAGE POINTS ABOVE TREASURYS A SIGN THAT MANY INVESTORS WHO WEREN'T ABLE TO BUY THE BONDS AT THE SALE WERE WILLING TO PAY MORE FOR THEM IN THE RESALE MARKET YIELD RISES AS PRICE DECLINES AND VICE VERSA THE BONDS WERE RATED BAA3 BY MOODY'S INVESTOR'S SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE LOWEST LEVEL DEEMED INVESTMENT GRADE RECENT ISSUES BY THE WORLD BANK TIME WARNER MCI COMMUNICATIONS CORP AND THE CANADIAN PROVINCE OF ONTARIO ALSO SAW THE SAME KIND OF NARROWING OF THE YIELD GAP SAYS MS KENWORTHY INVESTOR DEMAND HAS BEEN SO STRONG THAT THE PLANNED SIZE OF A NUMBER OF DEALS WAS BOOSTED SHARPLY IN RESPONSE TELECOMMUNICATIONS INC FOR EXAMPLE BOOSTED A PLANNED OFFERING OF 10YEAR NOTES AND 30YEAR BONDS BY 650 MILLION TO 105 BILLION DURING THE FIRST WEEK OF JANUARY LATE LAST WEEK HANSON OVERSEAS FINANCE BV A UNIT OF HANSON PLC BOOSTED A PLANNED OFFERING OF THREEYEAR AND 10YEAR NOTES BY 400 MILLION TO 125 BILLION WE ANTICIPATED THAT WE WOULD HAVE TO COME BACK TO THE MARKET LATER IN THE YEAR SAYS BARNEY SHOTTERS TREASURER OF TELECOMMUNICATIONS BUT WE DID A YEAR'S WORTH OF FINANCING IN TWO HOURS WE WERE VERY MUCH SURPRISED AND PLEASED BY THE DRAMATIC DEMAND FOR THE ISSUE ACCORDING TO JOHN LONSKI SENIOR ECONOMIST AT MOODY'S INVESTORS NOWADAYS ARE LESS WORRIED ABOUT CREDIT RISK DUE TO THE WIDELY HELD OPINION THAT THE WORST SEEMS TO BE OVER AS FAR AS CREDIT DOWNGRADES MUCH OF THE CORPORATE DEBT ISSUED LAST YEAR AND SO FAR THIS YEAR HAS BEEN USED TO REFINANCE OLDER HIGHERYIELDING DEBT SAYS MR LONSKI THUS GIVING COMPANIES A STRONGER ECONOMIC FOOTING THAN IN THE PAST ANOTHER REASON FOR THE STRONG INVESTOR INTEREST IN CORPORATE BONDS SAYS PATRICIA DE BLANK KLINK PRESIDENT OF ADVISERS CAPITAL MANAGEMENT INC IS A SHIFT IN ATTITUDES OF BIG INSTITUTIONAL BUYERS LIKE MUTUAL FUNDS THE BIG CHANGE FOR INSTITUTIONAL INVESTORS IS THAT YIELDS ARE LOW AND SHOULD BE GOING UP IN THE NEXT 10 YEARS SAID MS DE BLANK KLINK IN THE PAST DECADE 70 OF THE RETURNS CAME FROM COMPOUNDING INTEREST WHEN RATES WERE HIGHER SHE SAYS NOW INVESTORS MUST FIND A WAY TO SUBSTITUTE FOR THESE HIGH COUPONS MORE OF THE TOTAL RETURN WILL COME FROM PRICE APPRECIATION THAN FROM HIGH COUPONS AS A RESULT INVESTORS ARE INTERESTED IN MANY COMPANIES THAT HAVE SURVIVED THE RECESSION SHAVED OLDER HIGHER YIELDING DEBT AND NOW MAY BE DUE FOR A CREDIT UPGRADE WHICH WOULD BOOST THEIR BOND PRICES ACCORDING TO MARK SIEGEL MANAGING DIRECTOR OF THE CORPORATE SYNDICATE DESK AT MORGAN STANLEY & CO THE NEW CORPORATE ISSUES ARE BEING PURCHASED BY A BROAD GROUP OF INSTITUTIONAL INVESTORS RANGING FROM BANKS AND INSURANCE COMPANIES TO PENSION FUNDS AND INTERNATIONAL INSTITUTIONS WE DON'T SEE ANY PARTICULAR CLASS OF INVESTOR DRIVING THIS BOOM HE SAYS ALTHOUGH A STRONG DOLLAR MAY BE ATTRACTING MORE FOREIGN INVESTORS TO THE US CORPORATE BOND MARKET THE MIX OF DEALS HAS BEEN SUCH THAT THERE HAS BEEN LOTS OF INTERNATIONAL ISSUANCE SAYS MR SIEGEL LAST THURSDAY ALONE FOREIGN ISSUERS SOLD 275 BILLION OF YANKEE BONDS TO US INVESTORS YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN ENTITIES IN THE US FOREIGN INVESTORS ESPECIALLY EUROPEANS HAVE SUDDENLY DECIDED TO COME BACK TO DOLLARDENOMINATED INVESTMENTS SAYS MS KENWORTHY OF DREYFUS CORP THEY LOOKED AT THE VOLATILITY OF THE EUROPEAN CURRENCY MARKETS OVER THE PAST YEAR AND THE GROWING STRENGTH OF THE DOLLAR SINCE SEPTEMBER SHE SAYS AND SAW THE US CORPORATE MARKET AS MUCH MORE ATTRACTIVE AS THE DOLLAR STRENGTHENS A US BOND PORTFOLIO BECOMES WORTH MORE TO A FOREIGN INVESTOR MEASURED IN THAT INVESTOR'S HOME CURRENCY THE CORPORATE BOND MARKET FEEDING FRENZY IS LIKELY TO CONTINUE UNTIL THE END OF THE MONTH SAYS MS KENWORTHY UNLESS WE HEAR ABOUT SOMETHING CRAZY FROM SADDAM HUSSEIN OR PRESIDENTELECT CLINTON ANNOUNCES A MASSIVE GOVERNMENT SPENDING PACKAGE SUCH EVENTS COULD SHAKE UP THE TREASURY MARKET AND PUSH YIELDS UP WHILE POURING COLD WATER ON PLANS TO ISSUE NEW CORPORATE DEBT WE'RE STILL VERY VERY VULNERABLE TO STATEMENTS THAT COULD FRIGHTEN THE MARKET SAYS MS KENWORTHY BUT THE GOOD NEWS IS THAT A LOT OF CLINTON'S ADVISERS ARE FORMER WALL STREET PEOPLE WHO UNDERSTAND HOW THE DEBT MARKETS WORK PRICES OF TREASURY NOTES AND BONDS ROSE 1/32 TO 1/2 OF A POINT FRIDAY WITH THE MARKET CONTINUING TO ADD TO ITS RECENT GAINS IT WAS A SERIES OF EVENTS THAT HELPED THE MARKET HIGHER SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC I DON'T THINK IT WAS ANY ONE ITEM THAT CAUSED IT TO JUMP THE MARKET STARTED OUT THE DAY GREETED WITH ECONOMIC NEWS THAT WAS TERMED NEUTRAL TO SLIGHTLY POSITIVE THE NOVEMBER MERCHANDISE TRADE DATA WERE A NONEVENT WITH THE TRADE GAP WIDENING SLIGHTLY TO 759 BILLION FROM 722 BILLION BUT THERE WAS GOOD NEWS ON INFLATION WITH THE DECEMBER CONSUMER PRICE INDEX RISING JUST 01 ALTHOUGH THE DATA WERE VIEWED AS SUPPORTIVE THEY DID NOT GENERATE MUCH MARKET IMPACT BECAUSE INFLATION IS ALREADY WIDELY SEEN AS UNDER CONTROL AT MIDMORNING FRIDAY THE MARKET GOT SOME HELP FROM A DECLINE IN THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX ACCORDING TO MARKET PARTICIPANTS WHO RECEIVE THE REPORT THE EARLY READING FOR JANUARY SHOWED A DECLINE IN THE INDEX TO 900 FROM 910 IN DECEMBER LONGTERM TREASURYS WERE ALSO BOOSTED BY CONTINUING TALK THAT THE CLINTON ADMINISTRATION WILL REDUCE THE AMOUNT OF LONGTERM SECURITIES THAT ARE ISSUED BY THE TREASURY AS PART OF AN ATTEMPT TO CONTROL THE COSTS OF FINANCING THE FEDERAL BUDGET DEFICIT IN ADDITION IT APPEARS THAT MANY IN THE MARKET HAVE NOW BEEN REASSURED BY COMMENTS FROM PRESIDENTELECT CLINTON'S APPOINTEES THAT THEIR FOCUS WILL BE ON REDUCING THE BUDGET DEFICIT AND NOT ON FISCAL STIMULUS THE BENCHMARK 30YEAR BOND ROSE 1/2 OF A POINT TO 103 7/32 FOR A YIELD OF 735 DOWN FROM 739 ON THURSDAY THE 10YEAR NOTE ROSE 6/32 POINT TO 98 13/32 FOR A YIELD OF 658 DOWN FROM 661 THE FIVEYEAR NOTE ROSE 1/8 OF A POINT TO 100 27/32 FOR A YIELD OF 579 DOWN FROM 582 THE TREASURY MARKET IS CLOSED TODAY IN OBSERVANCE OF THE MARTIN LUTHER KING JR DAY HOLIDAY MEANWHILE KROGER CO AMONG THE MOST ACTIVE ISSUERS OF JUNK BONDS LAST YEAR TAPPED THE MARKET AGAIN FRIDAY AND RECEIVED OVERWHELMING INTEREST BY INVESTORS THE CINCINNATI SUPERMARKET RETAILER FLOATED 200 MILLION OF 12YEAR SENIOR SECURED DEBENTURES PRICED AT PAR TO YIELD 925 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC THE NOTES ARE RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P THE NOTES WERE PRICED WITH A YIELD WELL BELOW THE 9375 TO 95 YIELD ANTICIPATED EARLIER THIS WEEK BUT THAT DID NOT APPEAR TO HURT INVESTOR DEMAND SYNDICATE OFFICIALS AND KROGER FINANCE PERSONNEL SAID THE DEAL WAS OVERSUBSCRIBED BY NEARLY TWO TO ONE TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9301180110 930118 US CRUISE MISSILES ATTACK TARGET IN BAGHDAD SUBURB PENTAGON SAYS FACILITY WAS PART OF NUCLEAR EFFORT IRAQI MIG IS DESTROYED BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON HIS FINAL WEEKEND IN OFFICE PRESIDENT BUSH AGAIN TOOK THE FIGHT TO BAGHDAD MORE THAN 40 CRUISE MISSILES WERE FIRED YESTERDAY AFTERNOON FROM US NAVY SHIPS IN THE PERSIAN GULF AND RED SEA AGAINST A COMPLEX OF BUILDINGS IN THE SOUTHERN SUBURBS ABOUT EIGHT MILES SOUTHEAST OF THE CAPITAL'S DOWNTOWN THE FACILITY MADE PARTS FOR IRAQ'S NUCLEAR ENRICHMENT PROGRAM AND WAS A KEY PART OF THE COUNTRY'S NUCLEAR WEAPONS PROGRAM A SENIOR PENTAGON OFFICIAL SAID IT WAS THE SECOND SERIES OF ATTACKS ON IRAQ IN FIVE DAYS AND CAME TWO YEARS TO THE DAY OF THE BEGINNING OF THE GULF WAR EVEN THOUGH THERE WAS HEAVY ANTIAIRCRAFT FIRE OVER DOWNTOWN BAGHDAD PENTAGON OFFICIALS SAID NOTHING IN THAT PART OF THE CITY WAS TARGETED AND NO AIRCRAFT WERE USED IN THE ACTION BUT A DOWNTOWN HOTEL WAS DAMAGED BY AN EXPLOSION AND THERE WERE REPORTS OUT OF BAGHDAD THAT IT MAY HAVE BEEN HIT BY A CRUISE MISSILE AS OF LATE YESTERDAY PENTAGON OFFICIALS SAID THEY HAD NO INFORMATION ABOUT THE DAMAGE INFLICTED BY THE TOMAHAWK GUIDED MISSILES WHICH CARRY 1000POUND WARHEADS IT WAS OUR FEELING THAT THIS WAS AN APPROPRIATE TARGET FOR MAKING THE POLITICAL AND DIPLOMATIC POINTS THAT WE WANTED TO MAKE SAID WHITE HOUSE SPOKESMAN MARLIN FITZWATER THE TARGET'S PROXIMITY TO BAGHDAD HELPS MAKE THE POINT TO THE PEOPLE OF THE COUNTRY AS WELL AS TO THE GOVERNMENT HE SAID HE AND OTHER US OFFICIALS INDICATED THAT THE US COULD STRIKE AGAIN IF IRAQ CONTINUES TO REFUSE TO COMPLY WITH UNITED NATIONS RESOLUTIONS PRESIDENTELECT CLINTON LESS THAN 72 HOURS AWAY FROM HIS INAUGURATION EXPRESSED FULL SUPPORT FOR THE ATTACK SAYING IN A STATEMENT SADDAM HUSSEIN'S CONTINUING PROVOCATION HAS BEEN MET BY APPROPRIATE AND FORCEFUL RESPONSE THE CRUISEMISSILE BARRAGE AGAINST THE ZAAFARANIYAH COMPLEX FOLLOWED A TENSE DAY OF CONFRONTATIONS IN THE AIR OF NORTHERN IRAQ AND ON THE LAND ALONG THE BORDER BETWEEN KUWAIT AND SOUTHERN IRAQ EARLY YESTERDAY MORNING THE SENIOR PENTAGON OFFICIAL SAID US BRITISH AND FRENCH AIRCRAFT PATROLLING THE NOFLY ZONE OVER NORTHERN IRAQ WERE LOCKED ON OR TARGETED BY RADAR FOR IRAQI ANTIAIRCRAFT ARTILLERY AND MISSILES ONE US AIRCRAFT RESPONDED BY FIRING A MISSILE AT A SA6 SURFACETOAIR MISSILE SITE IN NORTHERN IRAQ THEN AT 440 AM EST A US F16 FIGHTER USED TWO AIRTOAIR MISSILES TO DESTROY AN IRAQI MIG23 THAT HAD VIOLATED THE NORTHERN NOFLY ZONE THE PENTAGON SAID LATER IN THE DAY ACCORDING TO WIRE REPORTS THE KUWAITI GOVERNMENT SAID A SMALL GROUP OF IRAQI POLICE CROSSED THE BORDER BETWEEN THE TWO NATIONS AND FIRED AT A KUWAITI PATROL IN AN APPEARANCE YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY DEFENSE SECRETARY DICK CHENEY WAS QUESTIONED ABOUT SADDAM HUSSEIN'S INTENTIONS IN THE PATTERN OF ACTIONS OVER THE WEEKEND HE CLEARLY HAS DECIDED THAT HE'S PREPARED TO CHALLENGE US HE SAID ON THE FACE OF IT ONE ADMINISTRATION OFFICIAL CONTENDS THIS PATTERN OF AGGRESSIVE ACTIONS IS CONTRARY TO SADDAM HUSSEIN'S OWN INTERESTS IN THAT IT HAS FORCED PRESIDENTELECT CLINTON TO EMBRACE REPEATEDLY THE BUSH ADMINISTRATION'S POLICY AND ACTIONS AGAINST IRAQ SOMETIME IN THE NEXT FEW WEEKS HOWEVER THE IRAQI LEADER MIGHT TRY TO SPLIT THE ANTIIRAQ COALITION BY MAKING CONCILIATORY GESTURES AT THAT POINT THE CLINTON ADMINISTRATION MIGHT BE FIXED IN A HARDLINE POSTURE WHILE OTHER COALITION MEMBERS PARTICULARLY ARAB STATES MIGHT WANT TO MOVE TOWARD PEACE BUT ANOTHER SENIOR ADMINISTRATION OFFICIAL REJECTED THAT LINE OF THINKING ARGUING IF YOU LOOK OVER THE TWO YEARS SINCE THE END OF THE WAR WHAT'S SURPRISING IS HOW STRONG THE COALITION IS AND WHILE PRESIDENT BUSH'S INTENSIVE PERSONAL DIPLOMACY MAY HAVE HELPED GLUE THE COALITION TOGETHER HE SAID SO DID THE SHEER OUTRAGEOUSNESS OF SADDAM'S BEHAVIOR 9301180109 930118 CAPITAL HOLDING BUYS INSURER LOUISVILLE KY CAPITAL HOLDING CORP SAID IT COMPLETED ITS ACQUISITION OF CLOSELY HELD ACADEMY INSURANCE GROUP FOR 1176 MILLION THE PURCHASE WAS RECENTLY APPROVED BY STATE INSURANCE DEPARTMENTS IN COLORADO MISSOURI AND NEW JERSEY WHERE UNITS OF BOTH COMPANIES ARE LOCATED CAPITAL SAID A CAPITAL HOLDING SPOKESWOMAN SAID IT'S TOO EARLY TO TELL WHETHER IT WILL LAY OFF ANY OF ACADEMY'S 180 WORKERS ACADEMY BASED IN ATLANTA MARKETS LIFE AND HEALTH INSURANCE TO MILITARY PERSONNEL INCLUDING VETERANS AND RETIREES IT HAS 103 MILLION OF ANNUALIZED PREMIUMS IN THE LIFE AND HEALTH BUSINESS CAPITAL HOLDING OFFERS FINANCIAL SERVICES AND HAS MORE THAN 20 BILLION IN ASSETS AND 566 BILLION OF LIFE INSURANCE COVERAGE IN FORCE 9301180108 930118 PRECISION CASTPARTS CUTS STAFF PORTLAND ORE PRECISION CASTPARTS CORP CITING WEAK CONDITIONS IN THE AEROSPACE INDUSTRY DISMISSED 365 EMPLOYEES AT THREE FACILITIES THE LAYOFFS FOLLOW A SIMILAR ACTION IN NOVEMBER WHEN 283 WORKERS WERE CUT FROM THE PAYROLL THE COMPANY WHICH MAKES EQUIPMENT FOR THE AEROSPACE INDUSTRIAL TURBINE AND HEALTH CARE INDUSTRIES HAD PREDICTED A TOTAL OF 500 LAYOFFS BUT CONTINUED DETERIORATION OF ITS AEROSPACE MARKETS DICTATED A LARGER REDUCTION THE COMPANY SAID AS A RESULT OF THE POOR BUSINESS CONDITIONS THE COMPANY PREDICTED SALES FOR THE YEAR ENDING IN MARCH WILL FALL 20 FROM LAST YEAR'S 5833 MILLION 9301180107 930118 PIER 1 IMPORTS SAYS IT EXPECTS TO MEET EARNINGS ESTIMATES FORT WORTH TEXAS PIER 1 IMPORTS INC SAID IT EXPECTS TO MEET ANALYSTS' EARNINGS ESTIMATES OF 60 CENTS TO 65 CENTS A SHARE FOR ITS FISCAL YEAR ENDING FEB 28 COMPARED WITH EARNINGS OF 60 CENTS A SHARE A YEAR EARLIER CLARK A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE IMPORT RETAILER ALSO FEELS COMFORTABLE WITH ANALYSTS' EARNINGS PROJECTIONS 70 CENTS TO 85 CENTS A SHARE FOR THE NEXT FISCAL YEAR WHILE THE STRONG CHRISTMAS SEASON JUST PAST WILL PUSH EARNINGS FROM THE PIER 1 DIVISION ABOVE ANALYSTS' ESTIMATES OF 68 CENTS TO 71 CENTS A SHARE HE SAID THAT WILL BE PARTIALLY OFFSET BY A NET LOSS FROM PIER 1'S SUNBELT NURSERY UNIT THAT MAY EXCEED ANALYSTS' ESTIMATES OF SIX CENTS TO EIGHT CENTS A SHARE HE SAID PIER 1 EXPECTS TO POST SALES OF ABOUT 624 MILLION FOR THE CURRENT FISCAL YEAR NOT INCLUDING SUNBELT SAID MR JOHNSON UP 63 FROM THE PREVIOUS YEAR HE SAID THE COMPANY EXPECTS SALES FOR THE COMING FISCAL YEAR TO SURPASS 700 MILLION MR JOHNSON SAID THE COMPANY WILL OPEN 41 NEW US STORES THIS YEAR AS PART OF A PLAN TO GROW BY 300 STORES IN THIS COUNTRY OVER THE NEXT SEVEN YEARS TO A TOTAL OF MORE THAN 900 HE SAID THE COMPANY ALSO WILL BEGIN AN AGGRESSIVE EXPANSION PROGRAM THIS YEAR THAT CALLS FOR JOINT VENTURES AND INTERNATIONAL LICENSING ON SEVERAL CONTINENTS THOUGH HE WAS SPARSE WITH SPECIFICS MR JOHNSON SAID THAT IN ENGLISHSPEAKING COUNTRIES SUCH AS AUSTRALIA OR IN PLACES SUCH AS SINGAPORE WHERE ENGLISH IS WIDELY USED PIER 1 WILL PURSUE DIRECT INVESTMENT THAT INCLUDES EXPANSION IN CANADA WHERE PIER 1 NOW HAS 30 COMPANYOWNED STORES AND ENGLAND WHERE IT HAS FOUR UNITS IN MEXICO CENTRAL AND SOUTH AMERICA AND ELSEWHERE IN SOUTHEAST ASIA WHERE THE COMPANY FEELS GREATER NEED FOR PARTNERS THAT KNOW THE LOCAL LANGUAGE LAWS AND CUSTOMS PIER 1 WILL PURSUE JOINT VENTURES AND LICENSING ARRANGEMENTS HE SAID INITIALLY THE GOAL IS TO FIND ONE JOINTVENTURE PARTNER IN LATIN AMERICA AND ONE IN SOUTHEAST ASIA SAID MR JOHNSON ANALYSTS GENERALLY GREETED THE PLANS WITH APPROVAL THOUGH SEVERAL ECHOED WALTER F LOEB OF LOEB ASSOCIATES IN EXPRESSING SURPRISE THAT CONTINENTAL EUROPE ISN'T PART OF THE PICTURE MR JOHNSON SAID THE COMPANY ALSO WILL OPEN A NEW CORPORATE BUYING OFFICE WITHIN SIX MONTHS IN SOUTHEAST ASIA WITH THE EXACT LOCATION TO BE SET BY MIDFEBRUARY PIER 1 IMPORTS THE BULK OF ITS GOODS FROM THAILAND MALAYSIA INDONESIA INDIA AND CHINA HE SAID 9301180106 930106 YOUNG BILL CLINTON AND SCHOOL CHOICE BY BLANT HURT YESTERDAY BILL CLINTON ANNOUNCED HIS FAMILY'S CHOICE FOR EDUCATION IN WASHINGTON HIS DAUGHTER CHELSEA WILL BE ATTENDING A PRIVATE SCHOOL SIDWELL FRIENDS THE NEWS FOLLOWED MUCH SPECULATION INCLUDING ON THIS SUNDAY'S THIS WEEK WITH DAVID BRINKLEY SAM DONALDSON AND COKIE ROBERTS NOTED ON THE PROGRAM THAT IT IS UNFORTUNATE THAT MANY PARENTS CAN'T AFFORD A SIMILAR FREEDOM OF CHOICE IN SCHOOLS AND THAT PRESIDENTELECT CLINTON IS INCONSISTENT IN SENDING HIS DAUGHTER TO PRIVATE SCHOOL WHILE OPPOSING FULL SCHOOL CHOICE IT IS A LITTLE KNOWN FACT THAT PRIVATE SCHOOLING IS A FAMILY TRADITION IN 1953 MR CLINTON'S MOTHER VIRGINIA KELLEY MOVED HER FAMILY FROM HOPE TO HOT SPRINGS ARK BILL CLINTON WAS A SEVENYEAROLD IN SECOND GRADE UPON ARRIVING MS KELLEY WAS DISSATISFIED WITH WHAT TIME MAGAZINE HAS CALLED THE INFERIOR COUNTY SCHOOL AND ENROLLED HER SON IN ST JOHN'S SCHOOL A PRIVATE ACADEMY RUN BY ST JOHN'S PARISH I REALIZED THAT BILL WAS VERY SPECIAL MS KELLEY TOLD THE ARKANSAS CATHOLIC NEWSPAPER IN ITS NOV 8 EDITION AND I WANTED HIM IN A GOOD SCHOOL I WAS NOT FAMILIAR WITH CATHOLIC SCHOOLS EXCEPT BY REPUTATION EVERYONE TOLD ME WHAT A FINE SCHOOL THE NUNS RAN AS FAR AS DISCIPLINE AND TEACHING SO I DECIDED I'D PUT BILL IN THERE RIGHT AWAY ACCORDING TO THE ARKANSAS CATHOLIC ARTICLE YOUNG BILL RECEIVED STRAIGHT A'S EXCEPT FOR A C IN DEPORTMENT A CONCERNED MS KELLEY IMMEDIATELY WENT TO SEE BILL'S SECONDGRADE TEACHER SISTER MARY AMATA MCGHEE WHO EXPLAINED THAT HE WAS SO EAGER THAT HE OFTEN BLURTED OUT ANSWERS BEFORE SHE FINISHED THE QUESTION SISTER MARY AMATA FELT THAT A C WOULD PROMPT MORE SELFCONTROL IN HER WISDOM SAID MS KELLEY SISTER MCGHEE WAS SO RIGHT BILL LEARNED TO SIT AND WAIT UNTIL IT WAS HIS TURN TO ANSWER QUESTIONS MS KELLEY THOUGHT THIS AND OTHER LESSONS LEARNED BY YOUNG BILL WERE CRITICAL TO HIS DEVELOPMENT I WILL NEVER FORGET THE NUNS FOR AS LONG AS I LIVE FOR GIVING HIM SUCH A GOOD START SHE SAYS MR CLINTON'S THIRDGRADE TEACHER MSGR JOHN O'DONNELL TOOK THAT POINT FURTHER IN HIS COMMENTS TO THE ARKANSAS CATHOLIC I AROUSED YOUNG BILL CLINTON'S INTEREST IN WORLD HISTORY AND POLITICS WHEN I TAUGHT MY COURSE IN THE DECLINE AND FALL OF THE ROMAN EMPIRE HE SAID AT THE END OF THE COURSE LITTLE WILLY STOOD UP AND SAID THAT IF HE HAD BEEN EMPEROR ROME WOULDN'T HAVE FALLEN MS KELLEY'S RATIONALE FOR ENROLLING HER SON IN ST JOHN'S SCHOOL CONTAINS FOUR SIMPLE WORDS THAT ARE THE ESSENCE OF TODAY'S MOVEMENT FOR SCHOOL CHOICE I WANTED AND I DECIDED IN ACTING UPON THESE WORDS MS KELLEY ASSERTED CONTROL OVER HER SON'S FATE SHE CONSCIOUSLY CHOSE THE VALUES THAT FORMED HIS CHARACTER AND HELPED DETERMINE HIS COURSE OF ACTION WITH HER ACTION SHE EXERCISED HER FREE WILL AND RATIONAL FACULTIES DID MS KELLEY MAKE THE RIGHT CHOICE FOR HER SON OBVIOUSLY SHE THINKS SO BUT HOW MIGHT BILL CLINTON'S LIFE HAVE BEEN DIFFERENT HAD HIS MOTHER INSTEAD SAID I CANNOT ACT ON MY JUDGMENT BECAUSE I CANNOT AFFORD TO SEND MY SON TO THE SCHOOL OF MY CHOICE IN ESSENCE PUBLIC AND PRIVATE SCHOOL CHOICE IS ABOUT EXTENDING TO AMERICANS OF ALL INCOME LEVELS THE CHANCE TO ACT UPON THE WORDS I WANT AND I DECIDE WITHOUT THIS OPPORTUNITY AMERICA'S K THROUGH 12 EDUCATION SYSTEM WILL NEVER BECOME WHAT IT SHOULD BE IT WILL REMAIN AN EDUCATIONAL SYSTEM THAT INTENDS TO DEVELOP THE MINDS OF AMERICA'S CHILDREN WHILE IT DENIES MANY AMERICANS WHO CANNOT AFFORD ALTERNATIVES THE CHANCE TO ASSERT CONTROL OVER THEIR CHILDREN'S EDUCATION THE MOVEMENT FOR SCHOOL CHOICE CONTINUES TO BUILD AMONG THE MOST ENCOURAGING DEVELOPMENTS ARE THE PRIVATELY FUNDED SCHOOLCHOICE PROGRAMS THAT HAVE BEEN LAUNCHED IN INDIANAPOLIS ATLANTA MILWAUKEE SAN ANTONIO PRINCE GEORGES COUNTY MD AND BILL CLINTON'S LITTLE ROCK MAGGIE JACKSON A LITTLE ROCK RESIDENT IS A TYPICAL BENEFICIARY OF THESE PROGRAMS SHE'S A SINGLE MOTHER WHO LIVES JUST BLOCKS FROM THE ARKANSAS GOVERNOR'S MANSION AND EARNS ABOUT 9000 A YEAR LAST YEAR MS JACKSON RECEIVED A 1000 GRANT FROM THE PRIVATELY FUNDED FREE TO CHOOSE TRUST SO THAT HER EIGHTYEAROLD SON DESHAWN COULD GO TO PRIVATE SCHOOL THE GRANT PAID HALF OF THE TUITION AND WAS FUNDED BY LOCAL BUSINESS LEADERS MS JACKSON'S LOGIC FOR PLACING HER SON IN A PRIVATE SCHOOL IS SIMILAR TO VIRGINIA KELLEY'S IN PUBLIC SCHOOL THEY DON'T TAKE DISCIPLINARY ACTION ALL THEY DO IS GIVE HIM A BEHAVORIAL DOCUMENT SHE TOLD THE ARKANSAS DEMOCRATGAZETTE SINCE HE'S BEEN AT PRIVATE SCHOOL HE'S HAD ONLY POSITIVE THINGS TO SAY A COUPLE OF DAYS AGO HE CAME HOME AND SAID THAT WHEN HE ACTED BAD IN PUBLIC SCHOOL HE KNEW ALL I'D GET WOULD BE A PHONE CALL THAT WOULD MAKE NO DIFFERENCE NOW HE SAYS I KNOW I CAN'T ACT BAD' MS JACKSON CONCLUDES THIS GRANT LETS ME KNOW THAT IF I SACRIFICED THERE WAS A WAY TO SEND DESHAWN TO A PRIVATE SCHOOL AND HAVE HELP UNFORTUNATELY THE PRESIDENTELECT'S OPPOSITION TO SCHOOL CHOICE DENIES MILLIONS OF PARENTS THE CHANCE TO DECIDE EXACTLY WHAT SCHOOLING IS BEST FOR THEIR CHILDREN SURELY EACH OF THESE PARENTS FEELS LIKE VIRGINIA KELLEY THAT HER CHILD IS VERY SPECIAL WHILE AMERICA'S PRIVATELY FUNDED VOUCHER PROGRAMS ARE GROWING IN NUMBER AND SCOPE THEY CAN DO ONLY SO MUCH THE PUBLIC POLICY GOAL THEY SEEK PUBLIC AND PRIVATE SCHOOL CHOICE FOR EVERY AMERICAN WILL HAPPEN ONLY WITH THE SUPPORT OF LOCAL AND NATIONAL POLITICIANS OBVIOUSLY BILL CLINTON BENEFITED FROM THE EDUCATIONAL CHOICES OF HIS YOUTH BUT NOW HE PLEDGES POLITICAL ALLEGIANCE TO THE TEACHERS UNIONS AND EDUCRATS WHO OPPOSE GENUINE SCHOOL CHOICE THERE WAS A TIME WHEN BILL CLINTON WAS MORE FRIENDLY TO THE IDEA OF PRIVATE SCHOOL CHOICE IN 1990 HE WROTE CHOICE PIONEER POLLY WILLIAMS OF WISCONSIN TO PRAISE HER EFFORTS AND DECRY THOSE IN THE DEMOCRATIC PARTY WHO OPPOSED HER BUT BY THE TIME HE RAN FOR PRESIDENT SUCH SENTIMENTS HAD VANISHED DURING A DEBATE BEFORE THE NEW HAMPSHIRE PRIMARY COKIE ROBERTS ASKED MR CLINTON IF YOUR DAUGHTER WENT TO A PUBLIC SCHOOL WHERE EVERY DAY SHE WAS SHAKEN DOWN FOR LUNCH MONEY SHE WAS AFRAID TO GO TO SCHOOL AND WAS LEARNING HARDLY ANYTHING YOU WOULD HAVE THE OPTION OF SENDING HER TO A PRIVATE SCHOOL WHY SHOULDN'T A BLACK MOTHER WHO IS IN THE SAME POSITION NOT HAVE THAT SAME OPTION SIMPLY BECAUSE SHE CAN'T AFFORD TO DO IT MR CLINTON CALLED THE QUESTION DIFFICULT AND PAINFUL BUT SAID MY ANSWER TO YOU IS NO WE SHOULD NOT HAVE A PRIVATE VOUCHER SYSTEM OUR PUBLIC SCHOOL SYSTEMS ARE UNDERFUNDED POOR PARENTS WHO SEEK FULL EDUCATIONAL CHOICE ARE SIMPLY ASKING FOR THE SAME CHANCE YOUNG BILL CLINTON HAD THEY SIMPLY WANT TO ACT UPON THE WORDS I WANTED AND I DECIDED THAT SERVED HIM SO WELL AND MEANT SO MUCH IN HIS LIFE MR HURT IS A LITTLE ROCK BUSINESSMAN A COLUMNIST FOR ARKANSAS BUSINESS AND FOUNDER OF THE FREE TO CHOOSE TRUST SEE RELATED LETTERS LETTERS TO THE EDITOR SCHOOL FAILURE STRIKES HOME WSJ JAN 18 1992 9301060052 9301180105 930106 REVIEW & OUTLOOK EDITORIAL ASIDES CHELSEA'S MORNINGS THE CLINTONS SAY THEIR 12YEAROLD DAUGHTER CHELSEA WILL ATTEND THE PRIVATE SIDWELL FRIENDS SCHOOL SIDWELL IS A HAVEN FOR CHILDREN OF THE CAPITAL'S RICH AND FAMOUS TUITION IS ABOUT 10800 AND A WORLD AWAY FROM THE METAL DETECTORS AND GANGS IN THE CITY'S PUBLIC SCHOOLS WE UNDERSTAND WHY THE CLINTONS WOULD EXERCISE THIS PRIVATESCHOOL CHOICE BUT WHY DON'T THEY WANT POOR PARENTS AND CHILDREN TO HAVE THE SAME OPPORTUNITY SEE RELATED LETTERS LETTERS TO THE EDITOR SCHOOL FAILURE STRIKES HOME WSJ JAN 18 1993 9301060013 9301180104 930118 TECHNOLOGY BORLAND AGAIN WIDENS SOFTWARE DISCOUNTS CUTTING PRICES FURTHER SCOTTS VALLEY CALIF BORLAND INTERNATIONAL INC BROADENED ITS 90DAY PROGRAM OF PROMOTIONAL DISCOUNTS WHICH HAS SLASHED SOFTWARE PRICES TO AS LOW AS ONEFIFTH NORMAL LEVEL THE SOFTWARE MAKER SAID FRIDAY IT WILL OFFER ITS QUATTRO PRO FOR WINDOWS FOR 9995 THE PROMOTIONAL PRICE ON THE SPREADSHEET PROGRAM RUNS FROM FEB 1 THROUGH APRIL 30 PREVIOUSLY BORLAND MOVING TO REASSERT ITS DOMINANCE IN DATABASE MARKETS AGAINST INCURSIONS BY COMPETITOR MICROSOFT CORP SAID IT WOULD INTRODUCE FOR 90 DAYS ITS NEW PARADOX FOR WINDOWS DATABASE PROGRAM FOR 139 STARTING FEB 1 THAT MOVE ANSWERED AN AGGRESSIVE PRICE PROMOTION BY MICROSOFT WHICH SPARKED BIG SALES OF ITS ACCESS DATABASE PROGRAM BY OFFERING THE PRODUCT FOR 9995 ONEFIFTH THE NORMAL CHARGE FOR A DATABASE PROGRAM MICROSOFT'S DISCOUNTDRIVEN SALES OF THE PRODUCT ARE REPORTEDLY BRISK DESPITE WIDESPREAD REPORTS THAT ACCESS IS TROUBLED BY BUGS AND IS MISSING CERTAIN FEATURES 9301180103 930118 JOHNSTON INDUSTRIES CANCELS OFFER NEW YORK JOHNSTON INDUSTRIES INC SAID IT CANCELED ITS TENDER OFFER FOR AS MANY AS 185000 OF ITS SHARES CITING REGULATORY PROBLEMS THE MAKER OF INDUSTRIAL AND APPAREL TEXTILES SAID VERY RECENT REGULATORY INTERPRETATIONS RELATIVE TO THE TERMS OF THE OFFER PROMPTED ITS DECISION IT SAID IT DETERMINED THAT THE DELAY AND ADDITIONAL EXPENSE THAT WOULD BE REQUIRED TO RESPOND TO THE REGULATORY INTERPRETATIONS WOULD BE DETRIMENTAL TO THE COMPANY AND WOULD ELIMINATE A SIGNIFICANT PORTION OF THE BENEFITS EXPECTED FROM THE TENDER OFFER JOHNSTON DIDN'T ELABORATE ON THE STATEMENT ISSUED LATE FRIDAY AND COMPANY OFFICIALS COULDN'T BE REACHED 9301180102 930118 BASSETT FURNITURE EXPECTS INCREASES IN FISCAL '93 RESULTS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL BASSETT FURNITURE INDUSTRIES INC BASSETT VA IS BUDGETING FOR MODEST INCREASES IN SALES AND EARNINGS FOR FISCAL 1993 ROBERT H SPILMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN THE LATEST YEAR WHICH ENDED NOV 30 THE FURNITURE MAKER EARNED 275 MILLION OR 238 A SHARE ON SALES OF 4734 MILLION PERSHARE AMOUNTS WERE ADJUSTED TO REFLECT A 3FOR2 STOCK SPLIT IN APRIL MR SPILMAN DECLINED TO COMMENT ON ANALYSTS' ESTIMATES FOR THE YEAR THEY ARE LOOKING FOR THE COMPANY TO EARN ABOUT 305 MILLION TO 322 MILLION OR 265 TO 280 A SHARE THERE ARE AN AWFUL LOT OF UNKNOWNS WITH THE NEW ADMINISTRATION COMING IN MR SPILMAN SAID IN AN INTERVIEW HE EXPRESSED PARTICULAR CONCERN OVER UNCERTAINTY ABOUT THE US ROLE IN THE MIDDLE EAST AND IN AFRICA NOTING THAT DURING THE PERSIAN GULF WAR RETAILING JUST CAME TO A STOP HOWEVER MR SPILMAN SAID THAT RECENT INCREASES IN CONSUMER CONFIDENCE HAVE HELPED A LITTLE AND THAT ORDER BACKLOG IS A LITTLE BIT AHEAD OF THIS TIME LAST YEAR I HOPE THE BREATH OF SPRINGTIME WE'VE SEEN IN THE LAST 60 DAYS ISN'T A FALSE START HE SAID HE NOTED THAT BASSETT HASN'T HAD A BACKLOG IN WOOD FURNITURE SINCE THE STOCK MARKET CRASH OF 1987 THE OPPORTUNITY HAS BEEN MUCH EASIER IN UPHOLSTERY HE SAID MR SPILMAN DECLINED TO PREDICT EARNINGS FOR THE FIRST QUARTER WHICH ENDS FEB 28 IN THE YEARAGO QUARTER BASSETT EARNED 62 MILLION OR 54 CENTS A SHARE ON SALES OF 1064 MILLION BASSETT MAKES BEDROOM DINING ROOM CHILDREN'S AND OTHER KINDS OF FURNITURE AND UPHOLSTERY AND BEDDING THE COMPANY'S LARGEST DIVISION IS ITS MIDPRICED BASSETT DIVISION BUT IT ALSO MAKES LOWPRICED AND HIGHPRICED LINES ITS BIGGEST CUSTOMER IS JC PENNEY IN THE PAST YEAR THE COMPANY WHICH HAS 44 FACTORIES IN THE US AS LEFT THE HOTEL MOTEL AND OFFICE FURNITURE BUSINESSES WHICH WERE VERY DEPRESSED MARKETS MR SPILMAN SAID INSTEAD IT IS FOCUSING ON EXPANDING ITS UPHOLSTERY DIVISION WITH ONE PLANT EXPANSION JUST COMPLETED IN MISSISSIPPI AND PLANS TO EXPAND SEVERAL OTHER PLANTS WE'RE FOCUSING ON A VERY STREAMLINED LINE LOOKING AT ANY COSTCUTTING MEASURES WE HAVEN'T ALREADY ADDRESSED MR SPILMAN SAID WE'RE TRYING TO RUN A VERY LEAN SHIP SINCE 1985 THE COMPANY HAS SPENT HEAVILY ON NEW MACHINERY THAT HAS IMPROVED PRODUCTION EFFICIENCY IN 1990 IT CLOSED A MAJOR BEDROOM AND DINING ROOM FURNITURE PLANT BECAUSE THAT'S THE MARKET THAT'S BEEN HARDEST HIT MR SPILMAN SAID THE COMPANY WHICH HAS ABOUT 7800 EMPLOYEES ABSORBED MOST OF THE 500 PEOPLE WHO HAD WORKED IN THAT PLANT NEVERTHELESS MR SPILMAN SAID BASSETT IS CONSTANTLY LOOKING FOR NEW OPPORTUNITIES AND WOULD BUY SOMETHING IF THERE WERE SYNERGIES BETWEEN THE BUSINESSES HE DECLINED TO SAY WHETHER BASSETT IS IN TALKS ABOUT A POSSIBLE ACQUISITION 9301180101 930118 LETTERS TO THE EDITOR THE EVER POPULAR US SAVINGS BOND ON YOUR JAN 5 EDITORIAL PAGE HENRY S ROWEN OF STANFORD UNIVERSITY CALLS FOR A NATIONAL SAVINGS CAMPAIGN ALONG THE LINES OF THE WORLD WAR II WAR BONDS CAMPAIGN HE ALSO SUGGESTS ENCOURAGING FIRMS TO OFFER PAYROLL SAVINGS PLANS MR ROWEN CLAIMS THAT POSTWORLD WAR II SAVINGS BOND SALES DECLINED WHEN THE VALUE OF BONDS WAS ERODED BY INFLATION ACTUALLY THE US SAVINGS BONDS PROGRAM IS ALIVE AND WELL AND SETTING SALES RECORDS THANKS TO HIGHLY COMPETITIVE MARKETBASED INTEREST RATES CURRENTLY 504 AND A GUARANTEED RATE OF 6 FOR BONDS HELD AFTER FIVE YEARS AMERICAN SAVERS BOUGHT MORE THAN 17 BILLION OF US SAVINGS BONDS IN 1992 MORE THAN 60 OF BOND PURCHASES WERE THROUGH PAYROLL SAVINGS PLANS COVERING NEARLY EIGHT MILLION EMPLOYEES IN 48000 COMPANY UNITS INCLUDING DOW JONES AIDED BY MORE THAN A HALFMILLION VOLUNTEERS NATIONWIDE ALTHOUGH STANFORD UNIVERSITY DOES NOT PROVIDE ITS EMPLOYEES THE BENEFITS OF PAYROLL SAVINGS PLAN PARTICIPATION WE WOULD BE HAPPY TO HAVE SOMEONE FROM OUR SAN FRANCISCO OFFICE CALL ON THEM 9301180100 930118 TRANSAMERICAN WASTE PURCHASE HOUSTON TRANSAMERICAN WASTE INDUSTRIES SAID IT COMPLETED THE ACQUISITION OF CONTROLLED RECOVERY INC WHICH OWNS AND OPERATES A NONHAZARDOUSWASTE LANDFILL WEST OF HOBBS NM TERMS WEREN'T DISCLOSED A TRANSAMERICAN SPOKESMAN SAID THE ACQUISITION WAS COMPLETED THROUGH THE ISSUANCE OF RESTRICTED STOCK AND A MINIMAL AMOUNT OF CASH TRANSAMERICAN HAS ABOUT 14 MILLION SHARES OUTSTANDING CONTROLLED RECOVERY COLLECTS AND DISPOSES OF NONHAZARDOUS OILFIELD WASTE AND CONTAMINATED SOILS THE 260ACRE SITE RECEIVED ITS LICENSE TO OPERATE IN NOVEMBER 1990 AND HAS AN ESTIMATED USEFUL LIFE OF 40 YEARS TRANSAMERICAN SAID 9301180099 930118 TECHNOLOGY US ENERGY PACT WITH UNIVERSITY MAY BE IN TROUBLE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE UNIVERSITY OF CALIFORNIA FAILED TO NOTIFY THE ENERGY DEPARTMENT THAT A SENIOR OFFICIAL OF ITS LAWRENCE LIVERMORE NATIONAL LABORATORY WAS UNDER INVESTIGATION FOR INSIDER TRADING ACCORDING TO THE DEPARTMENT'S INSPECTOR GENERAL THE UNIVERSITY'S FAILURE MAY PLACE IN JEOPARDY THE FIVEYEAR 150 MILLION CONTRACT UNDER WHICH THE UNIVERSITY MANAGES THREE NUCLEARWEAPONS LABORATORIES INCLUDING LAWRENCE LIVERMORE FOR THE DEPARTMENT IT COULD ALSO HOLD UP THE EXPENDITURE OF SEVERAL BILLION DOLLARS EARMARKED FOR RESEARCH AT THE LABS SHORTLY AFTER THE CONTRACT WAS SIGNED LATE IN NOVEMBER THE SECURITIES AND EXCHANGE COMMISSION MADE PUBLIC A SETTLEMENT WITH LIVERMORE GENERAL COUNSEL WILLIAM DEGARMO IT INVOLVED ALLEGATIONS THAT MR DEGARMO BENEFITED IN STOCK TRANSACTIONS FROM HIS KNOWLEDGE THAT LIVERMORE WAS ABOUT TO DROP PLANS TO PURCHASE A NEW COMPUTER FROM CRAY COMPUTER CO THE SETTLEMENT REQUIRED THAT MR DEGARMO FORFEIT 27000 THAT HE EARNED ON THE TRANSACTION AND PAY A 27000 FINE THE ENERGY DEPARTMENT INSPECTOR GENERAL JOHN LAYTON COULD NOT BE REACHED FOR COMMENT BUT IN A JAN 5 LETTER TO REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE MR LAYTON SAID HE HAD RECOMMENDED THAT THE DEPARTMENT CONSIDER BARRING THE UNIVERSITY FROM FURTHER BUSINESS WITH THE DEPARTMENT MR LAYTON SAID THE FAILURE TO NOTIFY THE DEPARTMENT ABOUT MR DEGARMO'S TROUBLES WITH THE SEC MAY REFLECT A LACK OF BUSINESS INTEGRITY OR BUSINESS HONESTY WHICH COULD SERIOUSLY AND DIRECTLY AFFECT THE ABILITY OF THE UNIVERSITY OF CALIFORNIA TO MANAGE AND OPERATE A DEPARTMENT OF ENERGY FACILITY MR LAYTON'S COMMENTS IN THE LETTER WERE FIRST REPORTED IN FRIDAY'S LOS ANGELES TIMES ENERGY DEPARTMENT SPOKESMAN RICK OBORN SAID THE DEPARTMENT IS CONSIDERING MR LAYTON'S RECOMMENDATIONS BUT DECLINED TO COMMENT FURTHER JAMES E HOLST GENERAL COUNSEL TO THE UNIVERSITY SAID THAT NEITHER THE UNIVERSITY NOR THE LIVERMORE LAB HAD SEEN THE INSPECTOR GENERAL'S LETTER AND COULD NOT COMMENT DIRECTLY ON IT IN A STATEMENT TO THE UNIVERSITY'S BOARD OF REGENTS MR HOLST SAID THE ENERGY DEPARTMENT CONTRACT DIDN'T REQUIRE REPORTING TO THE GOVERNMENT PRIOR TO DEC 1 1992 WHEN THE DEPARTMENT LEARNED OF THE SEC ACTION WE ARE SATISFIED THE UNIVERSITY'S OBLIGATIONS UNDER THE CONTRACT WITH THE DOE HAVE BEEN FULLY SATISFIED IN THESE CIRCUMSTANCES MR HOLST SAID IT IS CONSIDERED UNLIKELY THAT THE ENERGY DEPARTMENT WOULD DISCONTINUE ALL PAYMENTS TO THE UNIVERSITY THE DEPARTMENT HAS NEVER TAKEN SUCH ACTION AGAINST A MAJOR CONTRACTOR BUT AN INVESTIGATION BY MR LAYTON COULD RESULT IN A CANCELLATION OR RENEGOTIATION OF THE LIVERMORE CONTRACT ACCORDING TO MR DINGELL'S AIDE AT ISSUE SAID THE AIDE IS NOT THE CONTENT OF THE CONTRACT BUT THE FITNESS OF MR DEGARMO TO HAVE PARTICIPATED IN NEGOTIATING IT HOWEVER A SPOKESMAN FOR THE ENERGY DEPARTMENT IN SAN FRANCISCO SAID MR DEGARMO HAD NO DIRECT ROLE IN THE NEGOTIATION BUT MERELY ADVISED THE LIVERMORE MANAGEMENT AND THE GENERAL COUNSEL FOR THE UNIVERSITY OF CALIFORNIA ON CERTAIN PROCEDURAL ISSUES SURROUNDING THE NEGOTIATION THE UNIVERSITY OF CALIFORNIA ALSO OPERATES FOR THE ENERGY DEPARTMENT THE LOS ALAMOS NATIONAL LABORATORY AND THE LAWRENCE BERKELEY NATIONAL LABORATORY ALL THREE LABORATORIES ARE INVOLVED IN NUCLEAR WEAPONS RESEARCH 9301180098 930118 TEN MAKERS OF CHINA TABLEWARE SETTLE WITH CALIFORNIA OVER LEAD CONTENTS BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL TEN MAKERS OF CHINA TABLEWARE REACHED AN AGREEMENT WITH CALIFORNIA'S ATTORNEY GENERAL AND THE ENVIRONMENTAL DEFENSE FUND ON A PLAN TO CUT THE LEAD CONTENT IN THEIR PRODUCTS IN A SETTLEMENT THE COMPANIES ALSO AGREED TO MAKE PAYMENTS TOTALING 2350000 IN PENALTIES COURT COSTS AND FUNDING FOR PUBLIC EDUCATION THE PACT ENDS A LAWSUIT BROUGHT IN NOVEMBER 1991 UNDER CALIFORNIA'S STRICT TOXIC CONTROL LAW PROPOSITION 65 SEEKING TO CUT THE LEAD CONTENT OF GLAZES THAT COAT CHINAWARE THE ACTION REPRESENTS THE LARGEST SETTLEMENT TO DATE UNDER PROPOSITION 65 AND THE STATE PROMISED TO EXTEND ITS REACH BY BRINGING PRESSURE ON OTHER MANUFACTURERS WHO FAIL TO ADHERE TO ITS STANDARDS MANUFACTURERS SIGNING THE SETTLEMENT ARE WEDGWOOD USA INC A UNIT OF LONDON'S JOSIAH WEDGWOOD & SONS LTD FITZ & FLOYD INC ROYAL DOULTON USA INC A UNIT OF ROYAL DOULTON LTD OF THE UK NORITAKE CO VILLEROY & BOCH LTD OF GERMANY AMERICAN COMMERCIAL INC AN AFFILIATE OF MIKASA PFALTZGRAFF CO AND ITS UNIT SYRACUSE CHINA CORP PICKARD INC AND LENOX INC MARK AUSTRIAN A WASHINGTON DC ATTORNEY REPRESENTING SEVERAL CERAMIC COMPANIES IN THE ACTION COULDN'T BE REACHED FOR COMMENT UNDER TERMS OF THE PACT THE COMPANIES AGREED TO A 50 LEAD REDUCTION IN ALL CHINA PATTERNS EXCEEDING THE LIMIT OF CALIFORNIA'S STRICT STANDARD OR MAKE UP TO 1 MILLION IN EXTRA PAYMENTS FOR FAILURE TO MEET THE STATE'S DEADLINES COMPANIES ALSO CONSENTED TO GIVE PLATEBYPLATE WARNINGS ABOUT WHICH CHINA PATTERNS POSE A HAZARD WARNINGS WILL BE POSTED IN STORES HIGHLIGHTED BY A VIVID NEW CONSUMER SYMBOL FOR LEAD AN INVERTED YELLOW TRIANGLE OUTLINED IN BLACK SIMILAR TO A TRAFFIC YIELD SIGN FOR THE SHOPPER IN THE STORE THIS MEANS INSTANT RECOGNITION INSTEAD OF FINEPRINT LEGALESE SAID DAVID ROE AN ATTORNEY WITH THE ENVIRONMENTAL DEFENSE FUND MR ROE A COAUTHOR OF THE STATE'S TOXIN LAW SAID HE WAS VERY PLEASED WITH THE SETTLEMENT IT'S EXACTLY WHAT WE'D HOPED WOULD HAPPEN IN TERMS OF MOBILIZING THE MARKETPLACE TO GET RID OF A TOXIC HAZARD WHILE CALIFORNIA'S LEAD LIMITS GREATLY EXCEED THE NATIONAL NORM AN OFFICIAL OF THE FEDERAL FOOD AND DRUG ADMINISTRATION YESTERDAY PRAISED THE SETTLEMENT'S GOAL THE THING ABOUT LEAD IS THAT THERE ARE NO KNOWN SAFE LEVELS OF EXPOSURE AND IT'S UBIQUITOUS IN THE ENVIRONMENT SAID MICHAEL TAYLOR FDA'S DEPUTY COMMISSIONER FOR POLICY THUS ANY STEPS TOWARD LOWERING EXPOSURE ARE USEFUL THAT SEEMS TO BE THE POINT OF THE CALIFORNIA SETTLEMENT IN SYRACUSE NY SYRACUSE CHINA CORP SAID ITS PARTICIPATION IN THE SETTLEMENT AND ITS COMMITMENT TO CALIFORNIA'S TESTING PROGRAM MEAN THAT ITS PRODUCTS WON'T REQUIRE WARNING LABELS WHAT THIS MEANS IS THAT FOOD SERVICE OPERATORS WHO USE SYRACUSE CHINA DO NOT NEED TO PROVIDE INDEPENDENT TESTING TO PROVE THAT THEIR CHINAWARE IS IN COMPLIANCE WITH PROPOSITION 65 SAID CHARLES GODMAN PRESIDENT OF THE COMPANY SUCH TESTING CAN COST THOUSANDS OF DOLLARS A PATTERN BATCH HE ADDED WE REMAIN COMMITTED TO PROVIDING CONSUMERS WITH THE SAFEST HIGHEST QUALITY PRODUCTS AVAILABLE ADDED DAVID HARTQUIST EXECUTIVE DIRECTOR OF THE COALITION FOR SAFE CERAMICWARE A TRADE GROUP WHOSE MEMBERS INCLUDE THE COMPANIES INVOLVED IN THE SETTLEMENT 9301180097 930105 LET'S HAVE A NATIONAL SAVINGS CAMPAIGN BY HENRY S ROWEN THE NEED TO INCREASE INVESTMENT IN THE AMERICAN ECONOMY IS BECOMING WIDELY ACCEPTED IN POLITICAL CIRCLES LEGISLATION TO PROMOTE INVESTMENT SHOULD BE ACCOMPANIED BY A NATIONAL CAMPAIGN TO ENCOURAGE PEOPLE TO SAVE MORE AFTER GROWING AT ABOUT 2 ANNUALLY FOR 100 YEARS OUR LABOR PRODUCTIVITY HAS GROWN AT HALF THAT RATE SINCE ABOUT 1973 ALTHOUGH THERE ARE OTHER EXPLANATIONS FOR THE SLOWDOWN PERHAPS THE MOST IMPORTANT IN THE 1980S WAS THAT NET CAPITAL FORMATION WHICH AVERAGED MORE THAN 8 OF GROSS DOMESTIC PRODUCT FROM 1950 TO 1980 FELL TO 65 NET SAVINGS WHICH HAD RUN 6 TO 8 OF GDP IN EARLIER DECADES FELL TO 2 OF GDP IN THE LAST HALF OF THE 1980S ONLY BORROWING OTHER NATIONS' SAVINGS KEPT INVESTMENT FROM FALLING EVEN MORE DESPITE THIS CURRENT INVESTMENT IS TOO SMALL TO SUSTAIN GROWTH IN OUTPUT PER WORKER IN FACT THE AMOUNT OF CAPITAL AVAILABLE TO EACH WORKER HAS DECLINED SINCE THE LATE 1970S AIMING ONLY TO INCREASE INVESTMENT IN ONE PART OF THE ECONOMY SAY PLANTS AND EQUIPMENT WITHOUT STEPS TO INCREASE SAVINGS EITHER DISPLACES INVESTMENT IN OTHER PARTS OF THE ECONOMY OR INCREASES THE FLOW OF SAVINGS FROM ABROAD AMERICANS DO NOT GAIN AS MUCH FROM FOREIGNFINANCED INVESTMENTS AS FROM DOMESTICALLY FINANCED ONES BECAUSE THE FOREIGN OWNERS RECEIVE MUCH OF THE PRODUCTIVITY OF THEIR ASSETS AS A RETURN ON INVESTMENT AND WHEN FOREIGNERS FINANCE OUR GOVERNMENT DEFICITS PART OF THE RETURN ON AMERICANOWNED CAPITAL HAS TO SERVICE OUR FOREIGN DEBTS WORLD CAPITAL MARKETS ARE NOT PERFECTLY INTEGRATED COUNTRIES THAT SAVE A LOT INVEST A LOT AND RELYING ON FOREIGN CAPITAL CARRIES THE RISK OF SHARPLY HIGHER BORROWING COSTS THAT WEAKEN INVESTMENT FOR INSTANCE SINCE 1989 THE FLOW OF EXCESS WESTERN GERMAN SAVINGS HAS SWUNG FROM EXPORTS TO ITS IMPOVERISHED EASTERN PART THIS SHIFT HAS HELPED RAISE OUR BORROWING COSTS AND IS IT MORAL FOR THE WORLD'S RICHEST COUNTRY TO BE IMPORTING CAPITAL RATHER THAN EXPORTING IT GIVEN THAT THE GOVERNMENT DEFICIT REDUCES NATIONAL SAVINGS AND THAT OUR SOCIAL SECURITY SYSTEM IS A PAYASYOUGO ONE OUR ONLY SAVINGS ARE RETAINED EARNINGS BY FIRMS PENSIONS AND INDIVIDUALS OF THESE PENSION FUND ASSETS HAVE GROWN MOST RAPIDLY BY 1990 THEY EXCEEDED THE TOTAL VALUE OF DIRECTLY HELD EQUITY AND MUTUAL FUNDS BY ABOUT 600 BILLION GIVEN THIS FACT IT IS DISTRESSING THAT REAL EMPLOYER CONTRIBUTIONS TO PRIVATE PENSIONS PEAKED IN 1980 AND DECLINED BY 1989 TO THE LEVEL OF 1972 ONE REASON IS THAT GOVERNMENT POLICIES ARE INCONSISTENT SOME SUCH AS TAXEXEMPT STATUS ENCOURAGE CONTRIBUTIONS WHILE OTHERS SUCH AS PENALTIES ON EXCESSIVE COMPANY CONTRIBUTIONS TO PENSION PLANS AND HIGH ADMINISTRATIVE COSTS IMPOSED BY NUMEROUS AND CHANGING REGULATIONS DISCOURAGE THEM THE NET EFFECT IS THAT BIG FIRMS HAVE REDUCED THEIR CONTRIBUTIONS AND THE PROPORTION OF ALL EMPLOYEES IN PENSION PLANS HAS FALLEN IT ALSO APPEARS THAT SOCIAL SECURITY DEPRESSES SAVINGS THE MOST CRITICAL QUESTION IS HOW TO COMPENSATE FOR ITS ANTISAVINGS EFFECTS IN LIGHT OF DEMOGRAPHIC CHANGES THAT WILL PUT IT UNDER INCREASING STRESS UNTIL ABOUT NOW RETIRED WORKERS HAVE RECEIVED MORE THAN THEY PUT IN THE SYSTEM FROM ABOUT NOW ON MANY SINGLE AND HIGHER WAGE WORKERS WILL BE PAYING MORE THAN THEY WILL GET BACK AND THIS NET LOSS WILL GROW THIS PROSPECT SUPPORTS THE BELIEF OF MANY OF TODAY'S YOUNG WORKERS THAT THEY WILL NEVER SEE THE BENEFITS NOW PROMISED TO THEM ALL OF THIS SUGGESTS THAT WE SHOULD AIM AT RESTORING NET NATIONAL SAVINGS AT LEAST TO 7 TO 8 OF GDP AN INCREASE IN THE NET NATIONAL SAVINGS RATE BY 5 OF GDP WOULD INCREASE REAL WAGES OVER THE NEXT GENERATION BY ABOUT 15 ABOVE ITS TREND A MAJOR ACCOMPLISHMENT THERE ARE MANY PRECEDENTS OF CAMPAIGNS FOR PUBLIC PURPOSES THE WORLD WAR II WAR BONDS CAMPAIGN THE ENERGY CONSERVATION CAMPAIGN OF THE 1970S ANTICIGARETTE SMOKING ADVERTISING PROMOTION OF SAFER SEX METHODS AND RECENT WATER CONSERVATION EFFORTS IN CALIFORNIA THESE EXPERIENCES SHOW THAT EFFORTS TO CHANGE BEHAVIOR WILL HAVE LASTING SUCCESS ONLY IF THE DESIRED CHANGES ARE CONSISTENT WITH PEOPLE'S PERCEIVED INTERESTS ENERGY CONSERVATION EFFORTS FADED WHEN FUEL PRICES FELL POSTWORLD WAR II SAVINGS BOND SALES DECLINED WHEN THE VALUE OF THE BONDS WAS ERODED BY INFLATION BUT ANTICIGARETTE ADVERTISING HAS BEEN SUPPORTED BY GROWING SCIENTIFIC EVIDENCE OF HEALTH HAZARDS TODAY OUR POLICIES ON SAVINGS ARE INCONSISTENT WE GIVE TAX PREFERENCES TO PENSIONS AND HAVE LIMITED IRAS BUT WE ALSO DOUBLETAX CAPITAL INCOME AND ENCOURAGE CONSUMPTION THROUGH SUCH CREDIT EXTENSIONS AS HOME EQUITY LOANS MOREOVER FOR DECADES THE AMERICAN PEOPLE HAVE BEEN BOMBARDED WITH MESSAGES FROM BUSINESS AND GOVERNMENT ALIKE TO SPEND RATHER THAN TO SAVE KEYNES'S MESSAGE THAT TOO MUCH SAVING CAUSED THE DEPRESSION HAS BEEN IMPRINTED ON THE AMERICAN CONSCIOUSNESSA MAXIM SUPPOSEDLY TRUE IN GOOD TIMES AS WELL AS BAD POLLSTER DANIEL YANKELOVICH IN A SURVEY FOR THE PUBLIC AGENDA FOUNDATION REPORTED THAT MANY PEOPLE BELIEVE THAT IT IS SOCIALLY BETTER TO SPEND THAN TO SAVE CLEVELAND WOMAN I'VE ALWAYS HEARD THAT THE MORE YOU SPEND THE MORE IT HELPS THE ECONOMY CORNELL ECONOMIST RICHARD THALER OBSERVES THAT PEOPLE TREAT MONEY IN DIFFERENT CATEGORIES OR ACCOUNTS DIFFERENTLY THESE BEHAVIORAL DIFFERENCES ARE THE REASON FOR BELIEVING THAT THE IMPACT OF CHANGES IN THE TAX LAWS TO ENCOURAGE SAVINGS CAN BE ENHANCED BY A SAVINGS CAMPAIGN AND THEY ARE THE BASIS FOR DESIGNING ONE IT SHOULD BE A CONTINUING EFFORT DEVELOPED WITH BROAD PARTICIPATION OF THE LEADERS OF MANY GROUPS AND LAUNCHED BY THE PRESIDENT THEMES SHOULD INCLUDE THE IMPORTANCE TO THE NATION OF INCREASES IN INVESTMENT AND THEREFORE SAVINGS THE WORKINGS OF COMPOUND INTEREST IN TURNING A MODEST STREAM OF ANNUAL SAVINGS INTO A SUBSTANTIAL RETIREMENT SUM THE VIRTUE OF CONTROL OVER ONE'S OWN FATE IN HAVING PRIVATE SAVINGS EG THE FABLE OF THE ANT AND THE GRASSHOPPER MR THALER ALSO SUGGESTS ENCOURAGING FIRMS TO USE LUMPSUM BONUSES MUCH OF WHICH WOULD BE SAVED INCREASING INCOME TAX WITHHOLDING RATES MAKING IT EASIER TO ROLL REFUNDS INTO SAVINGS INSTRUMENTS SUCH AS IRAS AND ENCOURAGING FIRMS TO OFFER PAYROLL SAVINGS PLANS IT ISN'T WIDELY KNOWN THAT JAPAN ADOPTED SIMILAR METHODS AFTER WORLD WAR II AND TO GREAT EFFECT SUCH A CAMPAIGN ACCOMPANIED BY THE RIGHT TAX LAW CHANGES COULD HELP TO BRING DOWN LONGTERM INTEREST RATES AND FOSTER CONDITIONS FOR SUSTAINED GROWTH MR ROWEN IS ON THE FACULTY OF STANFORD UNIVERSITY AS IS JOHN SHOVEN WHO HELPED IN THE PREPARATION OF THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR THE EVER POPULAR US SAVINGS BOND WSJ JAN 18 1993 9301050116 9301180096 930118 ADIENCE EXTENDS DEADLINE PITTSBURGH ADIENCE INC SAID IT EXTENDED THE VOTING DEADLINE FOR ITS PREPETITION SOLICITATION OF VOTES FOR A PREPACKAGED PLAN OF REORGANIZATION THE DEADLINE WAS EXTENDED TO 4 PM EST THURSDAY THE CLOSELY HELD PITTSBURGH COMPANY PREVIOUSLY SAID ITS SOLICITATION INCLUDES A REQUEST TO HOLDERS OF NOTES TO RELEASE THE GUARANTY OF SUCH NOTES BY INFORMATION DISPLAY TECHNOLOGY INC ADIENCE'S 802OWNED SUBSIDIARY AS OF THURSDAY HOLDERS REPRESENTING 998 OF ADIENCE COMMON STOCK AND 853 OF ADIENCE SENIOR SUBORDINATED RESET NOTES DUE 1999 HAD VOTED IN FAVOR OF THE PLAN IF 98 OF THE NOTE HOLDERS APPROVE INFORMATION DISPLAY TECHNOLOGY WON'T BE INCLUDED IN THE REORGANIZATION PLAN 9301180095 930118 INTERNATIONAL CHINA TO BOOST FARM SPENDING BEIJING CHINA IS TO INCREASE STATE FUNDING FOR AGRICULTURE BY ABOUT 32 THIS YEAR AN OFFICIAL NEWSPAPER SAID LAST YEAR THE CENTRAL GOVERNMENT EARMARKED 26 BILLION YUAN 445 BILLION FOR AGRICULTURE 72 MORE THAN THE PREVIOUS YEAR THE INCREASE COMES AMID CONCERN THAT CHINA'S 900 MILLION FARMERS ARE BEING LEFT BEHIND IN THE ECONOMIC REFORM DRIVE WHICH HAS BECOME FOCUSED ON RAPID INDUSTRIAL GROWTH AND DEVELOPMENT FARMERS HAVE BEEN INCREASINGLY BURDENED BY THE RISING COSTS OF FARM PRODUCTION AS WELL AS FEES AND TAXES WITHOUT SEEING A COMPARABLE INCREASE IN THE PRICES THE STATE PAYS FOR THEIR HARVESTS IN MANY CASES LOCAL GOVERNMENTS PAID FARMERS THIS YEAR IN IOU SLIPS RATHER THAN CASH CAUSING THE CENTRAL GOVERNMENT TO ORDER THAT ALL IOUS BE SETTLED BEFORE THE CHINESE NEW YEAR ON JAN 23 9301180094 930118 AS RACE FOR FRENCH PREMIER SHAPES UP BALLADUR CHARTS A CONSERVATIVE COURSE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE PATE DE FOIE GRAS HAS BEEN CLEARED AWAY AND AN EXPECTANT HUSH FALLS ON THE AUDIENCE OF BANKERS AND BUSINESS EXECUTIVES THEY HAVE FLOCKED TO A PLUSH PARIS HOTEL TO LISTEN TO THE MAN WIDELY EXPECTED TO BECOME FRANCE'S NEXT PRIME MINISTER EDOUARD BALLADUR RISES TO HIS FEET AND BEGINS WITH A WORD OF CAUTION MAYBE WE HAVE FORGOTTEN HE SAYS IN HIS QUIET NONONSENSE VOICE THAT PROSPERITY IS NOT PERPETUAL FOR THE NEXT 15 MINUTES MR BALLADUR 63 YEARS OLD OUTLINES HIS STRATEGY TO MAKE PROSPERITY MORE ASSURED AS A STUMP SPEECH IT IS LESS THAN SPARKLING DELIVERED WITH LITTLE PANACHE AND SCANT HUMOR BUT AS A STATEMENT OF INTENT IT IS TYPICAL OF THE MAN FACTUAL SERIOUS DOWNBEAT CHIDING THE SOCIALIST GOVERNMENT FOR A FISCAL EXPLOSION HE TALKS ABOUT THE NEED FOR URGENT STRUCTURAL REFORMS INCLUDING TAX CUTS PRIVATIZATION OF STATEOWNED COMPANIES ESPECIALLY BANKS AND INSURERS AND THE INTRODUCTION OF A GERMANSTYLE SYSTEM OF APPRENTICESHIP TO COMBAT UNEMPLOYMENT BUT DON'T EXPECT MANY QUICK FIXES HE WARNS ALL THIS IS A LONGTERM UNDERTAKING WHOEVER BECOMES PRIME MINISTER AFTER FRANCE'S PARLIAMENTARY ELECTIONS IN MARCH WILL FACE SOME SOBERING CHALLENGES THE WORLD ECONOMY STILL SHOWS LITTLE SIGN OF RECOVERY AND THE FRENCH ECONOMY ITSELF IS SLOWING APACE THE RECORD OF THE SOCIALIST GOVERNMENT IS MIXED LOW INFLATION AND A MORE OR LESS STABLE CURRENCY BUT A BUDGET DEFICIT THAT IS GROWING RAPIDLY AND UNEMPLOYMENT ON THE RISE DOMESTIC POLITICS WILL MAKE THE JOB THAT MUCH HARDER POLLS SUGGEST THAT CONSERVATIVE OPPOSITION PARTIES WILL TROUNCE THE SOCIALISTS IN MARCH THAT MEANS WHOEVER DOES BECOME PRIME MINISTER WILL HAVE TO DEAL BOTH WITH PRESIDENT FRANCOIS MITTERRAND A SOCIALIST WHOSE TERM EXPIRES IN 1995 AND WITH THE BICKERING FACTIONS OF THE RIGHT WHO CAN'T AGREE ON THE CANDIDATE THEY WANT TO RUN FOR PRESIDENT MR BALLADUR IS A CLOSE ALLY OF JACQUES CHIRAC THE GAULLIST MAYOR OF PARIS WHO DOESN'T HIDE HIS PRESIDENTIAL ASPIRATIONS THE TWO MEN SERVED TOGETHER IN THE CONSERVATIVE ADMINISTRATION OF 198688 THAT WORKED UNEASILY WITH MR MITTERRAND MR BALLADUR WAS FINANCE MINISTER ON THAT OCCASION AND IS FRONTRUNNER FOR PRIME MINISTER THIS TIME WHATEVER HIS NEXT JOB HE IS LIKELY TO PLAY AN IMPORTANT ROLE IN FORMULATING POLICY HE IS NOTHING IF NOT PREPARED AS THE OPPOSITION STARTS TO MAP OUT AND COORDINATE ITS PREELECTION PLATFORM MR BALLADUR IS ALREADY AHEAD OF THE CURVE HE HAS EMBARKED CAUTIOUSLY ON THE CAMPAIGN TRAIL LARGELY WOOING OR BEING WOOED BY THE FRENCH BUSINESS ESTABLISHMENT AND IN THE BEST FRENCH INTELLECUTAL TRADITION HE HAS JUST PUBLISHED A BOOK A DICTIONARY OF REFORM THE TITLE ECHOES MR BALLADUR'S CURRENT LEITMOTIF THE CONSTITUTION THE LEGAL SYSTEM AND IMMIGRATION POLICY ARE IN NEED OF REFORM HE SAYS WHILE THE ECONOMY IS HIS FORTE IT ISN'T THE ONLY AREA WHERE HE CHALLENGES ORTHODOXY AMONG OTHER THINGS HE BELIEVES THE TIME HAS COME TO SHIFT FRENCH FOREIGN POLICY AWAY FROM ITS SINGLEMINDED CONCENTRATION ON GERMANY AND TO START A BROAD DISCUSSION OF EUROPEAN DEFENSE INCLUDING THE FUTURE OF THE NORTH ATLANTIC TREATY ORGANIZATION AND FRANCE'S ROLE IN IT FOR ALL THE TALK OF REFORM HIS MANIFESTO IS A PRUDENT ONE THAT STRESSES THE DANGERS OF ILLPREPARED STEPS MIKHAIL GORBACHEV THE FORMER SOVIET PRESIDENT WHO UNLEASHED REFORMS ONLY TO BE DESTROYED BY THEM IS AN EXAMPLE HE LIKES TO CITE AS A CAUTIONARY TALE UNLIKE SOME OF HIS COLLEAGUES HE STRONGLY ADVOCATES STICKING TO THE CURRENT FRENCH POLICY OF MAINTAINING A STRONG CURRENCY AND NOT DEVALUING TO REGAIN SHORTTERM COMPETITIVENESS IN AN INTERVIEW MR BALLADUR IS SOBER ABOUT THE TASKS AHEAD THE TRUTH IS THAT IF THE WORLD ECONOMY DOESN'T TAKE OFF WE CAN PERHAPS DO A LITTLE BETTER THAN OTHERS IN FRANCE HE SAYS BUT IF THE WORLD ECONOMY REMAINS FLAT WE WILL NOT BE ABLE TO HAVE GROWTH OF 3 OR 4 ALL ALONE THAT'S EVIDENT YET GROWTH IS WHAT IS NEEDED ABOVE ALL HE ARGUES IF FLAWS IN THE FRENCH ECONOMIC STRUCTURE ARE TO BE IRONED OUT HIS MAIN TARGET IS THE HEAVY BURDEN OF EXPENSES AND TAXES THAT WEIGHS DOWN THE FRENCH ECONOMY EVEN BY EUROPEAN STANDARDS IT IS DEBILITATING HE SAYS BUT HE ADMITS THE POTENTIAL FOR RAPID CHANGE IS LIMITED THE SOCIALIST GOVERNMENT HAS ALLOWED THE BUDGET DEFICIT TO DOUBLE TO ABOUT 200 BILLION FRANCS 38 BILLION SINCE HE LEFT OFFICE IN 1988 PROVIDING A NEW ADMINISTRATION WITH LITTLE ROOM FOR MANEUVER HE TALKS ABOUT IMMEDIATE SAVINGS OF 3 BILLION TO 4 BILLION ON GOVERNMENT EXPENDITURE THAT COULD BE USED TO PROVIDE SOME INITIAL TAX RELIEF BUT THAT IS A DROP IN THE OCEAN AND SOME OF THE STATEOWNED BANKS AND INSURERS HE WOULD LIKE TO SELL OFF ARE WEIGHED DOWN BY BAD REAL ESTATE LOANS AND THEREFORE NOT VERY ATTRACTIVE HE ADMITS THAT LEAVES EUROPE WHICH PLAYS AN IMPORTANT ROLE IN HIS SHORTTERM PLANS MR BALLADUR STRONGLY SUPPORTS A EUROPEAN COMMUNITY SPENDING PROGRAM FOR INFRASTRUCTURE PROJECTS THAT WILL BE FINANCED BY CREDITS FROM THE EUROPEAN INVESTMENT BANK AND HE PINS MUCH HOPE ON PERSUADING GERMANY TO GO ALONG WITH A COORDINATED REDUCTION IN INTEREST RATES WE WILL HAVE AN ACCORD WITH THE GERMANS TO MANAGE INTERESTRATE POLICY IN A MANNER THAT IS BETTER SUITED TO GROWTH HE SAYS PERSUADING THE BUNDESBANK IS VERY DIFFICULT HE ACKNOWLEDGES BUT HE PROMISES THAT IN RETURN HE IS READY TO GRANT THE FRENCH CENTRAL BANK THE BANQUE DE FRANCE ITS INDEPENDENCE MR BALLADUR'S VIEWS ARE MAINSTREAM THINKING IN HIS PARTY WHICH IS CALLED THE RALLY FOR THE REPUBLIC BUT THERE ARE SOME IMPORTANT DISSENTERS PHILIPPE SEGUIN A PARTY MEMBER WHO BROKE RANKS WITH HIS COLLEAGUES TO OPPOSE THE MAASTRICHT TREATY ON EUROPEAN UNITY SAYS MR BALLADUR IS TOO CONCERNED WITH BUDGETARY DISCIPLINE DEFLATION NOT INFLATION IS NOW THE MAIN PROBLEM HE ARGUES AND HE URGES A DEVALUATION OF THE FRANC THERE IS A FEELING HE SAYS THAT WE ARE PAYING FOR OUR POLICIES WITH UNEMPLOYMENT MR BALLADUR IS AT PAINS TO DIFFERENTIATE HIS IDEAS FROM THOSE OF THE CURRENT ADMINISTRATION USING EVERY OPPORTUNITY TO LAMBAST THE GROWING BUDGET DEFICIT BUT ON AT LEAST ONE ISSUE WORLD TRADE HE BARELY DIFFERS FROM THE CURRENT PRIME MINISTER PIERRE BEREGOVOY FRANCE SHOULD STAND FIRM ON NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE HE SAYS AND NOT ACCEPT THE RECENT ACCORD BETWEEN THE EC AND THE US THAT WOULD CURTAIL FRENCH AGRICULTURAL EXPORTS THIS IS NOT A REACTIONARY STANCE MR BALLADUR SAYS BUT ONE BASED ON HIS BELIEFS IN LIBERAL ECONOMICS IN LIMITING RATHER THAN LIBERALIZING TRADE IN FARM PRODUCE HE SAYS GATT IS AN UNBALANCED ACCORD AND CONTRARY TO THE FREEDOM OF INTERNATIONAL TRADE 9301180093 930118 DIRECTOR OF FBI TO FIGHT REPORT OF ETHICS CHARGES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN ANGRY WILLIAM SESSIONS DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION WILL FIGHT A JUSTICE DEPARTMENT REPORT THAT SAYS HE VIOLATED VARIOUS ETHICAL STANDARDS ACCORDING TO HIS ASSOCIATES THE REPORT WAS SUMMARIZED IN A FIVEPAGE LETTER TO MR SESSIONS FROM WILLIAM BARR THE OUTGOING ATTORNEY GENERAL MR BARR ON HIS LAST DAY IN OFFICE FRIDAY ORDERED MR SESSION TO REIMBURSE THE BUREAU 10000 FOR THE COST OF A FENCE AROUND HIS HOME AND TO PAY INCOME TAXES FOR THE USE OF A GOVERNMENT LIMOUSINE IN AN APPARENT REFERENCE TO MR BARR MR SESSIONS SAID IN A STATEMENT THAT HE IS DISTRESSED THAT SOME IN WASHINGTON HAVE EMPLOYED POLITICAL SHENANIGANS IN AN ATTEMPT TO TAINT MY REPUTATION AND MY LEADERSHIP OF THE BUREAU MR SESSIONS SAID HE WILL RESPOND IN DETAIL TO THE REPORT AFTER HE IS GIVEN A COPY TOMORROW I AM CONFIDENT THAT MY RESPONSES WILL DEMONSTRATE THAT I HAVE ACTED PROPERLY AND HONORABLY IN ALL MATTERS DURING MY TENURE AT THE FBI HE SAID ASSOCIATES OF MR SESSIONS SAID HIS LANGUAGE ABOUT POLITICAL SHENANIGANS WAS UNCHARACTERISTIC AND REFLECTED HIS DEGREE OF ANGER HE'S CERTAINLY ANGRY ABOUT THE PROCESS HERE THE WAY THIS HAPPENED THE REPORT GIVEN TO HIM LATE FRIDAY NIGHT AS THE ATTORNEY GENERAL IS LEAVING SAID ONE BUREAU OFFICIAL HE DOES NOT KNOW THE BASIS FOR THE FINDINGS IN THE MEMO HE GOT MR BARR'S LETTER WAS BASED ON A REPORT BY THE DEPARTMENT'S OFFICE OF PROFESSIONAL RESPONSIBILITY MR SESSIONS' FRIENDS AND ASSOCIATES SAID HE WOULD APPEAL THE FINDING BUT FBI AND JUSTICE DEPARTMENT OFFICIALS WEREN'T CERTAIN OF THE APPEAL PROCESS THE DIRECTOR'S SUPPORTERS DID SAY HE IS DETERMINED TO STAY IN OFFICE HE IS IN THE MIDDLE OF A 10YEAR TERM MR BARR INFORMED ZOE BAIRD THE ATTORNEYGENERAL DESIGNATE OF THE REPORT BUT DIDN'T TELL HER THE CONTENTS ACCORDING TO A TRANSITION SPOKESWOMAN THE OFFICE OF PROFESSIONAL RESPONSIBILITY SAID MR SESSIONS DIDN'T COUNT AS TAXABLE INCOME THE LIMOUSINE SERVICE HE LIKE OTHER HIGHRANKING GOVERNMENT OFFICIALS IS PROVIDED THAT SERVICE IS CONSIDERED A TAXABLE BENEFIT MR SESSIONS HOWEVER HAS A LEGAL OPINION THAT HE WAS EXEMPT FROM THE TAX IF HE KEPT A GUN IN THE CAR FOR LAWENFORCEMENT PURPOSES THAT GUN HOWEVER WAS KEPT LOCKED IN THE TRUNK AND ITS AMMUNITION WAS LOCKED IN HIS OFFICE SAFE ACCORDING TO THE JUSTICE DEPARTMENT THE FENCE PAYMENT WAS ORDERED BECAUSE THE FENCE ERECTED AROUND HIS HOME WAS INAPPROPRIATE FOR SECURITY PURPOSES THE OFFICE FOUND AN FBI OFFICIAL SAID A SUBSTANTIAL NUMBER OF PEOPLE IN THE BUREAU WERE INVOLVED IN THE FENCE PROCESS AND THAT THE DECISION ON WHAT TYPE OF FENCE TO ERECT WASN'T MR SESSIONS' A JUSTICE DEPARTMENT OFFICIAL SAID THE DECISION ON THE FENCE BASICALLY WAS MADE BY MR SESSIONS' WIFE ALICE THE FENCE WAS SOMETHING HIS WIFE WANTED THE DEPARTMENT OFFICIAL SAID IT WAS A QUESTION OF HIS WIFE INSISTING ON THE FENCE BEING DESIGNED IN CERTAIN WAY THE REPORT COMES IN THE SAME WEEK MR BARR PRESENTED MR SESSIONS WITH AN AWARD FOR LAW ENFORCEMENT ACHIEVEMENT WHILE MR SESSIONS HAS GENERALLY DESCRIBED HIS RELATIONSHIP WITH MR BARR AS CORDIAL JUSTICE DEPARTMENT OFFICIALS HAVE MADE CLEAR THAT THEY WERE LESS THAN HAPPY WITH MR SESSIONS NOW MR SESSIONS' RELATIONSHIP WITH MR BARR IS FAIRLY STRAINED ACCORDING TO AN FBI OFFICIAL HE CLEARLY THINKS HE'S BEING UNFAIRLY SMEARED HERE 9301180092 930118 THE OUTLOOK AS ECONOMY EXPANDS WATCH THE LAGGARDS BY ALFRED L MALABRE JR NEW YORK WHEN PRESIDENTELECT CLINTON ASSUMES OFFICE LATER THIS WEEK PLANNERS IN HIS ADMINISTRATION WILL SURELY FOCUS MUCH OF THEIR ATTENTION ON THE ECONOMY AFTER ALL MR CLINTON MADE THE ECONOMY HIS CHIEF CAMPAIGN ISSUE AND SINCE WINNING THE ELECTION HE HAS CONTINUED TO STRESS ITS OVERRIDING IMPORTANCE THE ECONOMIC CHALLENGE FOR POLICY MAKERS HAS SHIFTED APPRECIABLY HOWEVER SINCE MR CLINTON'S NOVEMBER VICTORY THEN A CRUCIAL QUESTION WAS WHETHER THE FEEBLE RECOVERY WOULD PERSIST WITHOUT ANY RESUMPTION OF THE RECESSION THAT STRUCK IN MID1990 BUT NOW WITH THE ECONOMY CLEARLY EXPANDING A VERY DIFFERENT QUESTION IS SURFACING HOW MUCH ELBOWROOM IS THERE FOR HEALTHY PROLONGED ECONOMIC GROWTH AS THE CLINTON PRESIDENCY UNFOLDS AMID THE RECENT WORRY OVER THE RECOVERY'S SURVIVAL MUCH OF THE FOCUS WAS ON BAROMETERS SUCH AS THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS WHOSE UPS AND DOWNS TEND TO FORESHADOW THOSE OF THE OVERALL ECONOMY ON THE RISE THE COMMERCE INDEX CORRECTLY FORECAST THE ECONOMY'S CONTINUED IF MODEST GROWTH THE LEADING INDICATORS HOWEVER ARE LESS HELPFUL IN ASSESSING THE ECONOMY'S ABILITY TO KEEP EXPANDING FOR A LONG WHILE ONCE AN EXPANSION HAS TAKEN HOLD TO GAUGE DURABILITY A MORE INSTRUCTIVE EXERCISE IS TO OBSERVE WHAT ECONOMISTS CALL LAGGING INDICATORS THEIR UPS AND DOWNS AS THE NAME SUGGESTS TEND TO LAG BEHIND THE UPS AND DOWNS OF THE ECONOMY AS A WHOLE THESE LAGGING INDICATORS BY AND LARGE REFLECT FACETS OF THE ECONOMY THAT CONSPIRE WHEN THEY RISE TOO RAPIDLY FOR TOO LONG TO CONSTRAIN FURTHER EXPANSION HIGH ON THE LIST ARE VARIOUS MEASURES OF INFLATION INTEREST RATES LABOR COSTS AND DEBT THERE'S A COMMON BELIEF THAT RECESSIONS DEVELOP SIMPLY ON ACCOUNT OF SLUMPING DEMAND FOR GOODS AND SERVICES IN FACT RECESSIONS SET IN WHEN AN EXPANDING ECONOMY BUMPS UP AGAINST CONSTRAINTS TO FURTHER GROWTH WHICH IN TURN WILL STIFLE DEMAND THE CIRCUMSTANCES MAY VARY OF COURSE FROM ONE RECESSION TO ANOTHER INFLATION SOARED BEFORE THE TWO RECESSIONS OF THE EARLY 1980S BUT NOT BEFORE THE 199091 RECESSION VARIOUS DEBT MEASURES ROSE SHARPLY BEFORE THE 199091 RECESSION BUT NOT BEFORE THE TWO EARLIER SLUMPS WHAT DO THE LAGGING INDICATORS SUGGEST ABOUT THE DURABILITY OF THIS EXPANSION LARGELY THE NEWS IS GOOD BUT THERE IS A WORRISOME DEVELOPMENT THE LAGGING INDICATORS TAKEN AS A WHOLE HAVE FALLEN SUBSTANTIALLY SINCE THE ONSET OF THE 199091 RECESSION WHICH SUGGESTS A PRONOUNCED EASING OF CONSTRAINTS TO RENEWED SUSTAINABLE ECONOMIC GROWTH IN NOVEMBER THE LATEST MONTH AVAILABLE A COMPOSITE INDEX OF LAGGING INDICATORS COMPILED BY THE COMMERCE DEPARTMENT STOOD AT 1057 ON A BASE OF 1982=100 THIS WAS DOWN FROM 1204 IN JULY 1990 WHEN THE RECESSION BEGAN AND FROM 1201 IN MARCH 1991 WHEN IT ENDED THE INDEX USUALLY DOES DECLINE DURING AND JUST AFTER RECESSIONS AS CONSTRAINTS TO GROWTH DIMINISH TYPICALLY BORROWING SLOWS AND INFLATION AND INTEREST RATES EASE BUT THE DECLINE OF SOME 15 POINTS SINCE JULY 1990 EASILY EXCEEDS COMPARABLE DECLINES AFTER PREVIOUS RECESSIONS HAVE SET IN MOREOVER THE INDEX NORMALLY FALLS ONLY BRIEFLY AFTER THE ECONOMY STARTS TO REVIVE FOR THE SIX RECESSIONS PRIOR TO THE LATEST ONE THIS LAG TIME AVERAGED EIGHT MONTHS BUT THE LATEST LAG REFLECTING THE EXPANSION'S MODEST PACE LASTED A RECORD 18 MONTHS IT'S WORRISOME HOWEVER THAT THIS LONG DECLINE OF THE LAGGING INDICATORS HAS FINALLY ENDED THE INDEX REACHED A LOW OF 1042 IN SEPTEMBER AND SINCE THEN HAS RISEN MARKEDLY DUE LARGELY TO INCREASED BORROWING AND A SWIFTER RISE IN SERVICE PRICES THIS REVERSAL OF TREND IS SO RECENT AND STARTS FROM SUCH A LOW POINT THAT IT HARDLY POSES AN IMMEDIATE THREAT TO THE EXPANSION IN SOME PAST ECONOMIC UPSWINGS THE LAGGING INDICATORS CLIMBED FOR MANY YEARS BEFORE THE ECONOMY STOPPED EXPANDING EVEN SO ONCE THE INDEX OF LAGGING INDICATORS BEGINS TO RISE THE CLIMB NORMALLY CONTINUES UNTIL A NEW RECESSION DEVELOPS THE MORE GRADUAL THE INCREASE HOWEVER THE LONGER AN EXPANSION USUALLY LASTS THE INDEX ROSE RELATIVELY SLOWLY DURING MUCH OF THE LONG 198290 EXPANSION FOR EXAMPLE BUT VERY SHARPLY DURING SEVERAL RELATIVELY SHORT EXPANSIONS IN EARLIER YEARS IT'S MUCH TOO SOON TO ASSESS THE RECENT UPTURN IN THE INDEX BUT THE RISE SO FAR HAS BEEN SHARP SHOULD THIS CONTINUE IT WOULD SIGNAL TROUBLE FOR THE EXPANSION WHETHER IT WILL IN FACT CONTINUE DEPENDS ON THE POLICIES THE NEW ADMINISTRATION PURSUES HIGHLY STIMULATIVE MEASURES COULD ACCELERATE THE RISE OF MOST LAGGING INDICATORS AS MR CLINTON'S PLANNERS SETTLE IN THEY WILL NO DOUBT KEEP A CLOSE TAB ON VARIOUS LEADING INDICATORS TO GLIMPSE THE ECONOMY'S NEARTERM COURSE BUT THEY SHOULD ALSO BEAR IN MIND THE LAGGARDS FOR WHAT THEY SHOW ABOUT THE EXPANSION'S DURABILITY 9301180091 930118 BUSINESS BRIEF SEEQ TECHNOLOGY INC FIRM REVERSES LOSS POSTS FISCAL FIRSTQUARTER PROFIT SEEQ TECHNOLOGY INC AIDED BY GROSS MARGIN IMPROVEMENTS DUE TO ENHANCED PRODUCTION YIELDS RETURNED TO A PROFIT POSTING NET INCOME OF 105000 OR ONE CENT A SHARE FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 THE MAKER OF MEMORY CHIPS CONTROLLERS AND DATA COMMUNICATION DEVICES HAD A LOSS OF 62 MILLION OR 42 CENTS A SHARE IN THE YEAREARLIER QUARTER SEEQ'S FIRSTQUARTER REVENUE DECLINED 19 TO 86 MILLION FROM 106 MILLION HOWEVER THE FREMONT CALIF COMPANY SAID REBOUNDING ORDER RATES WILL ALLOW IT TO ENTER THE FISCAL SECOND QUARTER WITH A HEALTHY BACKLOG THE COMPANY'S STOCK CLOSED FRIDAY AT 11875 A SHARE UP 125 CENTS IN THE OVERTHECOUNTER TRADING 9301180089 930118 DIVIDEND NEWS HERBALIFE INTERNATIONAL INC HERBALIFE INTERNATIONAL INC INGLEWOOD CALIF SAID ITS BOARD APPROVED A 75 INCREASE IN THE COMPANY'S REGULAR QUARTERLY CASH DIVIDEND TO SEVEN CENTS A SHARE FROM FOUR CENTS A SHARE THE DIVIDEND IS PAYABLE FEB 15 TO SHAREHOLDERS OF RECORD ON FEB 4 9301180088 930118 NASD DISCIPLINES FIRMS INDIVIDUALS FOR VIOLATIONS OF LAWS REGULATIONS WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ANNOUNCED DISCIPLINARY ACTIONS AGAINST FIRMS AND INDIVIDUALS FOR VIOLATION OF OVERTHECOUNTER MARKET AND SECURITIES LAWS AND REGULATIONS HASAN GROWNEY CO NEW YORK WAS EXPELLED FOR FAILING TO PAY A 10000 ARBITRATION AWARD AS WELL AS A SMALLER AWARD EQUITRADE INC NASHVILLE TENN WAS FINED 5000 AND SUSPENDED FOR SIX MONTHS THE FIRM DIDN'T ADMIT OR DENY THAT IT FAILED TO MAINTAIN REQUIRED MINIMUM NET CAPITAL FIRST CHOICE SECURITIES CORP ENGLEWOOD COLO AND PRINCIPAL GREGORY F WALSH LOS ANGELES WERE FINED 20000 JOINTLY AND SEVERALLY WITH EACH RESPONSIBLE FOR THE AMOUNT AND THE FIRM WAS SUSPENDED FROM NASD MEMBERSHIP FOR 60 DAYS FIRST CHOICE OPENED FOUR BRANCH OFFICES IN VIOLATION OF ITS AGREEMENT WITH THE NASD IN ADDITION THE FIRM AND SHELDON OWEN FERTMAN DENVER WERE FINED 10000 JOINTLY AND SEVERALLY AND MR FERTMAN WAS BARRED AS A PRINCIPAL OVER FINDINGS THAT THEY ALLOWED AN UNREGISTERED INDIVIDUAL TO CONDUCT SECURITIES TRANSACTIONS THROUGH THE FIRM OSBORNE STERN & CO LOS ANGELES AND PRINCIPAL DOUGLAS W OSBORNE SR VENICE CALIF WERE FINED 270454 JOINTLY AND SEVERALLY THE FIRM WAS SUSPENDED AS A BROKER/DEALER FOR 90 DAYS AND MR OSBORNE WAS SUSPENDED FOR 90 DAYS THE NASD SAID THE FIRM CHARGED RETAIL CUSTOMERS UNFAIR PRICES CENTURY CAPITAL CORP OF SOUTH CAROLINA GREENVILLE SC WAS FINED 10000 FOR CHARGING CUSTOMERS UNFAIR PRICES THE ACTION HAS BEEN APPEALED TO A FEDERAL APPEALS COURT KESSLER ASHER CLEARING INC CHICAGO WAS FINED 2000 JOINTLY AND SEVERALLY WITH A BROKER AND FINED AN ADDITIONAL 10625 SEPARATELY THE FIRM DIDN'T ADMIT OR DENY THAT IT VIOLATED RULES CONCERNING SELLING SHARES OF A NEW ISSUE AT A PREMIUM IN THE IMMEDIATE AFTERMARKET TO A RESTRICTED ACCOUNT AMERICAN BUSINESS SECURITIES INC IRVINE CALIF AND PRINCIPAL BARRY JOHN ZIMMERMANN COSTA MESA CALIF WERE FINED 10000 JOINTLY AND SEVERALLY AND THE FIRM WAS FINED 7500 JOINTLY AND SEVERALLY WITH ANOTHER PRINCIPAL THEY DIDN'T ADMIT OR DENY CHARGES CONCERNING THEIR HANDLING OF FUNDS IN CONTINGENT OFFERINGS FJ GARBER & CO SIOUX CITY IOWA AND PRINCIPAL FREDERICK J GARBER WERE FINED 10000 JOINTLY AND SEVERALLY THEY DIDN'T ADMIT OR DENY FAILING TO MAINTAIN REQUIRED MINIMUM NET CAPITAL PAULSON INVESTMENT CO PORTLAND ORE AND THREE PRINCIPALS CHESTER LEON FREDERICK PAULSON THOMAS ELROY MCCHESNEY AND RICHARD ARTHUR BOEGE WERE FINED 60000 JOINTLY AND SEVERALLY THEY DIDN'T ADMIT OR DENY CHARGES OF ACTING AS A MARKET MAKER WHILE DISTRIBUTING COMMON SHARES IN VIOLATION OF SECURITIES REGULATIONS AMONG OTHER VIOLATIONS INDIVIDUALS DISCIPLINED INCLUDED LORI ANN ANDERSON LOGAN UTAH FINED 108072 AND BARRED BRIAN THAYER BAKER ST LOUIS FINED 26700 AND SUSPENDED FOR 30 DAYS MICHAEL A BAKONYL FAIRFIELD OHIO FINED 70000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES RICHARD BARNETT NEW YORK FINED 10000 AND SUSPENDED 15 BUSINESS DAYS WITHOUT ADMITTING OR DENYING CHARGES ROBERT BILLINGS SHEBOYGAN WIS FINED 200000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES RAYMOND E BLITSTEIN DENVER FINED 5000 AND BARRED MARK VICTOR BOOTH MINNEAPOLIS FINED 20000 AND BARRED ROBERT M CELESTE KENNEBUNKPORT MAINE FINED 10000 AND SUSPENDED FOR SIX MONTHS RAY T CLANCY GODFREY ILL FINED 75000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES AND KEVIN R CURTIS DALLAS AND CATHERINE W YOX TULSA OKLA FINED 7500 JOINTLY AND SEVERALLY MR CURTIS WAS SUSPENDED FOR TWO WEEKS AND MS YOX FOR ONE WEEK THEY DIDN'T ADMIT OR DENY CHARGES ROBERT D CUTCHALL OKLAHOMA CITY WAS FINED 30000 AND BARRED ROBERT A EAMES WEST JORDAN UTAH AND DAVID M EAMES SALT LAKE CITY WERE EACH FINED 70000 AND BARRED ROBERT STEPHEN ELLIS SYLVAN LAKE MICH WAS SUSPENDED FOR FIVE BUSINESS DAYS MARK M FERGUSON METAIRIE LA WAS FINED 85000 AND BARRED DAVID JOSEPH FINGERHUT ST LOUIS WAS FINED 2500 AND SUSPENDED SIX MONTHS WITHOUT ADMITTING OR DENYING CHARGES SAMUEL H GALANTZ NEW YORK WAS FINED 6500 AND SUSPENDED 10 BUSINESS DAYS HE DIDN'T ADMIT OR DENY CHARGES PETER PAUL E GEPUELA GLENDALE HEIGHTS ILL WAS FINED 21500 AND BARRED DAVID A GINGRAS WALLINGFORD PA WAS FINED 45000 AND SUSPENDED FOR SIX MONTHS JAMES CARROLL HALE RICHARDSON TEXAS WAS FINED 15000 AND SUSPENDED FOR 30 DAYS TOBY LYNN HICKMAN COLUMBUS OHIO WAS FINED 15000 AND BARRED UNLESS OTHERWISE NOTED NONE OF THE INDIVIDUALS OR FIRMS COULD BE REACHED FOR COMMENT ALSO PETER THOMPSON HIGGINS METUCHEN NJ WAS SUSPENDED FOR THREE BUSINESS DAYS THE ACTION HAS BEEN APPEALED STEWART E HOLZKENNER NEW YORK WAS FINED 9645 AND SUSPENDED FOR FIVE BUSINESS DAYS HE DIDN'T ADMIT OR DENY CHARGES JACK J ILLARE NEW YORK WAS FINED 1588 AND SUSPENDED THREE BUSINESS DAYS HE DIDN'T ADMIT OR DENY CHARGES JOHN P KAREKOS FAIRPORT NY WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES STEVEN W KOCHENSPARGER UPPER ARLINGTON OHIO WAS FINED 200000 AND BARRED MARC PETER KOPISH DALLAS WAS FINED 20000 AND BARRED AND RICARDO LAVADORES CHICAGO WAS FINED 21500 AND BARRED ALSO ADAM STUART LEVINE PORT WASHINGTON NY WAS FINED 40000 AND BARRED THE ACTION HAS BEEN APPEALED GABRIEL ANTHONY MARTINEZ CYPRESS HILLS NY WAS FINED 40000 AND BARRED THOMAS GARTH NAUMAN ELMA WASH WAS FINED 20000 AND SUSPENDED FOR 30 DAYS ELIZABETH ANN PAETOW WAVERLY MINN WAS FINED 20000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES JOEL E PORTER BIRMINGHAM ALA WAS BARRED WITHOUT ADMITTING OR DENYING CHARGES BART G POUWELS MARRERO LA WAS FINED 30000 AND BARRED DAVID JOSEPH RADZYMINSKI THOUSAND OAKS CALIF WAS FINED 35872 AND BARRED RODNEY RIGSBY NASHVILLE TENN WAS BARRED WITHOUT ADMITTING OR DENYING CHARGES VERNON ROBINSON CULVER CITY CALIF WAS FINED 4020750 AND BARRED JAMES RUSSEN JR MIDDLE ISLAND NY WAS FINED 50000 AND SUSPENDED 30 BUSINESS DAYS THE ACTION HAS BEEN APPEALED MICHAEL CLAYTON SAUNDERS KANSAS CITY MO WAS FINED 5000 AND SUSPENDED RICHARD C STOYECK NEW YORK WAS FINED 5000 AND SUSPENDED FOR FIVE BUSINESS DAYS HE DIDN'T ADMIT OR DENY CHARGES BRUCE EDWARD STRAUGHN NAPERVILLE ILL WAS SUSPENDED FOR FIVE BUSINESS DAYS DANA H TAYLOR WASHINGTON COURT HOUSE OHIO WAS FINED 4700 AND BARRED MR TAYLOR SAID I DENY THEIR CHARGES DAVID M VINCENT LOUISVILLE KY WAS FINED 5000 AND SUSPENDED FOR ONE WEEK HE DIDN'T ADMIT OR DENY CHARGES TROY WETTER GREENVIEW ILL WAS FINED 50000 AND BARRED THE ACTION HAS BEEN APPEALED WAYNE WHEELER FLORIDA NY WAS FINED 75000 AND BARRED FRANCIS ELDON WILLOCK SANTA ANA CALIF WAS BARRED HE SAID HE DISPUTES THE NASD'S CHARACTERIZATION OF THE SITUATION AND DENIED WRONGDOING FRANK L WOLFF FARMINGTON HILLS MICH WAS FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES DARIO A ZGOZNIK EASTLAKE OHIO WAS FINED 70000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES AND MARK C ZIELBERG LOUISVILLE KY WAS FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING CHARGES JAY M FERTMAN CASTLE ROCK COLO WAS FINED 76965 9301180087 930118 REVIEW & OUTLOOK EDITORIAL ABIDING THE INTOLERABLE THERE'S SOME COMFORT WE SUPPOSE THAT THE DONAHUE SHOW STILL TAKES UP THE STORY OF KATIE BEERS THE 10YEAROLD IMPRISONED IN A DUNGEON AND CHAINED BY THE NECK FOR 16 DAYS BY AN ALLEGED FAMILY FRIEND OR THE AMY FISHER SPECTACLE AT LEAST WE RETAIN SOME CAPACITY FOR SHOCK SO LONG THAT IS AS THE EVENT IS BIZARRE ENOUGH TO EVOKE COMPARISONS TO HORROR FILMS LIKE SILENCE OF THE LAMBS BY NOW MOST SPECTACLES BARELY MAKE THE LOCAL NEWS LAST THURSDAY FOR EXAMPLE A NEW JESEY JURY SENTENCED A 22YEAROLD KILLER TO 30 YEARS TO LIFE TWO YEARS AGO HE SHOT BOTH HIS PARENTS IN THE HEAD WITH SHELLS CAREFULLY LABELED MOM AND MOM AND DAD AND THEN USING THEIR CREDIT CARDS TOOK HIS GIRLFRIEND OUT TO DINNER HE DID NOT IT MAY COME AS NO SURPRISE CONSIDER HIMSELF RESPONSIBLE FOR THIS DEED HE ANNOUNCED LAST WEEK THAT IF THE COURT HAD DEVISED A GOOD TREATMENT PLAN FOR HIS PREVIOUS OFFENSES I'D STILL HAVE MY FAMILY BY PREVAILING STANDARDS THIS EXTRAORDINARILY BLOODY AND PREMEDITATED SET OF MURDERS WAS CLEARLY SMALL STUFF WE ARE GETTING USED TO A LOT OF BEHAVIOR THAT IS NOT VERY GOOD FOR US WRITES DANIEL PATRICK MOYNIHAN IN THE CURRENT THE AMERICAN SCHOLAR IN HIS COMPELLING ANALYSIS SENATOR MOYNIHAN NOTES THAT WE HAVE BEEN TRYING TO DEAL WITH THE OVERWHELMING GROWTH IN CRIMINALITY AND OTHER DEVIANT BEHAVIOR BY REDEFINING CRIME AND DEVIANCE AND IN EFFECT DECRIMINALIZING AND NORMALIZING SUCH BEHAVIOR MR MOYNIHAN TAKES SPECIAL NOTE OF THE REDEFINITION OF MENTAL ILLNESS THAT RESULTED BEGINNING IN THE 60S IN THE DISASTROUS PROGRAM KNOWN AS DEINSTITUTIONALIZATION ACTIVISTS WHO SUBSCRIBED TO THE NOTION THAT SOCIETY HAD UNFAIRLY LABELED THE MENTALLY ILL AND DRUGGED THEM HE POINTS OUT SUCCEEDED IN EMPTYING THE HOSPITALS AND PUTTING THE MENTALLY ILL ON THE STREETS THEY WOULD THEREAFTER BE FREE TO SLEEP IN DOORWAYS AND TO BE REDEFINED AS PERSONS LACKING AFFORDABLE HOUSING EFFORTS TO REDEFINE FAMILY STRUCTURE TOO HAVE BEEN UNDER WAY FOR SOME TIME MR MOYNIHAN NOTES HIGH SCHOOL AND COLLEGE TEXTBOOKS NOW REPRESENT DIVORCE AS PART OF THE NORMAL FAMILY LIFE CYCLE THIS DESPITE OVERWHELMING EVIDENCE THAT DIVORCE AND ONEPARENT FAMILIES CAUSE CHILDREN TO LEARN MORE SLOWLY AND ON AVERAGE COMMIT MORE CRIMES THAN THOSE FROM TRADITIONAL TWOPARENT FAMILIES BUT ABOVE ALL CRIME IS BEING REDEFINED AND NORMALIZED IN LARGE PART BECAUSE THE LEVEL OF VIOLENT CRIME IS SO HIGH THE CURRENT CRIME RATE INDUCES WHAT NEW YORK STATE SUPREME COURT JUSTICE EDWIN TORRES HAS DESCRIBED AS A NEAR NARCOLEPTIC STATE IT IS THAT SAME STATE THE JUDGE OBSERVES THAT ENABLES COMBAT INFANTRYMEN TO PAUSE DURING A LONG CAMPAIGN AND EAT THEIR BATTLEFIELD RATIONS WHILE SITTING ON THE BODIES OF THE FALLEN ONE OF THE MORE TELLING SYMPTOMS OF THE DEGREE TO WHICH CRIME HAS BEEN NORMALIZED IS OF COURSE EVIDENT IN THE REPORTING MR MOYNIHAN TAKES NOTE OF A NEWS ITEM ABOUT A TEACHER SHOT ON HER WAY TO CLASS A STORY WHOSE SUBHEADLINE READS YEAR'S FIRST SHOOTING INSIDE A SCHOOL THERE WAS ONCE A TIME OF COURSE WHEN A SHOOTING IN A SCHOOL WOULD HAVE BEEN VIEWED AS A UNIQUELY HORRIFYING EVENT NOT REPORTED IN MATTEROFFACT TERMS AS THOUGH IT WERE PART OF THE SCHOOL YEAR SCHEDULE WHAT WE ARE TALKING ABOUT HERE IS A SOCIETY FAST LOSING ITS CAPACITY FOR OUTRAGE WE HOPE THE TIME RETURNS WHEN SHOCK RAGE AND GRIM REVULSION ARE THE NORMAL REACTION TO SAY WORD OF A CABBIE OR BODEGA OWNER SLAIN AFTER HANDING HIS MONEY OVER TO ROBBERS ON OUR PRESENT COURSE WE FEAR IT WILL NOT BE LONG UNTIL THE SOWHAT RESPONSE ALSO APPLIES TO STORIES OF SEXUAL PREDATORS AND 10YEAROLD GIRLS 9301180086 930118 BELGIUM'S ETAP FLEXES MUSCLES TO MEET BRAVE NEW EUROMARKET BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL MALLE BELGIUM WE MAKE THIS SAYS NORBERT JORIS POINTING TO THE HIGHTECH FLUORESCENT LIGHT ABOVE HIS DESK AND THIS AND THIS HE POINTS TO THE DOOR THE WINDOW THE CEILING THE OFFICE WALLS ALL MADE BY HIS COMPANY ETAP NV HIS SECRETARY WRITES LETTERS ON AN ETAP COMPUTER MONITOR ON WEEKENDS MR JORIS SAILS THE NORTH SEA ON A 38FOOT ETAP YACHT IN MORE THAN 40 YEARS OF EXPORTING ETAP PRODUCTS TO OTHER EUROPEAN COUNTRIES THE 66YEAROLD BELGIAN ENTREPRENEUR HAS OFTEN BECOME ENTANGLED IN PROTECTIONIST RULES AND GOVERNMENT RED TAPE ALTHOUGH MANY OF THESE BARRIERS FELL JAN 1 WITH THE OPENING OF THE EUROPEAN COMMUNITY'S SINGLE MARKET MR JORIS STILL EXPECTS PLENTY OF PROTECTIONIST GRIT SOME BUSINESSES WILL BE MORE EQUAL THAN OTHERS IN THE BRAVE NEW MARKET SAYS MR JORIS WHO'S ALSO PRESIDENT OF THE FEDERATION OF BELGIAN ENTERPRISES IT ALL DEPENDS ON THE PRODUCT WHETHER IT BE BRICKS OR BONDS THERE SHOULD BE NO BORDERS IN THE SINGLE MARKETIN THEORY BUT IN PRACTICE SOME PRODUCTS WILL CONTINUE TO FACE TOUGH OBSTACLES WHETHER REGULATORY OR PSYCHOLOGICAL WHILE OTHERS WILL MOVE FREELY FOR A FEW PRODUCTS COMPUTERS AND BOOKS FOR EXAMPLE THE SINGLE MARKET CHANGES LITTLE MANUFACTURERS ALREADY COMPETE IN A GLOBAL MARKETPLACE WHERE MOST STANDARDS ARE UNIVERSAL FOR MANY PRODUCTS BANKING SERVICES AUTOMOBILES AND TELECOMMUNICATIONS HARDWARE SPECIFIC EC LEGISLATION REMOVED MANY NATIONAL BARRIERS ON JAN 1 OTHER PRODUCTS AND SERVICES SUCH AS INSURANCE AND AIR TRANSPORT WILL GAIN SINGLEMARKET FREEDOM A FEW YEARS BEHIND SCHEDULE IN 1994 1995 OR 1996 MANY BUSINESSES HOWEVER HAVE BEEN ALTOGETHER IGNORED HOUSEBUILDING PRODUCTS NATURAL GAS AND AIRTOAIR MISSILES ARE BUT A FEW EXAMPLES OF THE LEFTOUTS IN THE EC'S SINGLEMARKET PROGRAM NATIONAL AND REGIONAL DISCRIMINATIONS MONOPOLIES AND IMPORT QUOTAS REMAIN IN PLACE WHILE THINGS SHOULD BECOME MORE MANAGEABLE IT WON'T BE EASY SAYS MR JORIS BETWEEN TWO CIGARETTE PUFFS DURING AN INTERVIEW THIS IS HOW ETAP A MEDIUMSIZED COMPANY WITH 640 WORKERS AND ANNUAL REVENUE OF ABOUT 23 BILLION BELGIAN FRANCS 68 MILLION IS ADAPTING TO THE COMPETITIVE EUROPEAN MARKET TRYING TO BUILD HOUSES FOR A PANEUROPEAN MARKET IS LIKE TRYING TO SQUARE A CIRCLE EACH COUNTRY REGION CITY OR VILLAGE HAS ITS OWN RULES IMPOSING SPECIFIC MATERIALS DESIGNS AND COLORSRULES DESTINED TO REMAIN IN PLACE AFTER 1992 THE AMOUNT OF REGULATION IS AMAZING MR JORIS SAYS BRICKS ARE PRESCRIBED IN REGIONS WHERE THERE IS CLAY SLATE ROOFS ARE PRESCRIBED IN REGIONS RICH IN SLATE IN MOUNTAINOUS TERRAIN ROOFS HAVE TO FOLLOW RULES PRESCRIBING A CERTAIN SLOPE THE REGULATORY JIGSAW PUZZLE IS A SERIOUS CONSTRAINT FOR ETAP'S PREFABRICATEDHOUSE BUSINESS CALLED BATECH WHICH IN 10 YEARS HAS SOLD JUST TWO HOUSES ABROAD BUT BY REFOCUSING BATECH'S BUSINESS APPROACH MR JORIS HOPES TO TACKLE THE WIDER EC SINGLE MARKET BATECH MAKES TURNKEY HOUSES AND OFFICES BASED ON PREFABRICATED 132FOOT SQUARE MODULES FOUNDATIONS ARE OF PRESTRESSED CONCRETE THE SUPPORTING STRUCTURE IS OF LAMINATED WOOD THE ROOF OF ALUMINUM THE WALLS AND CEILINGS ARE MADE OF POLYESTER PANELS WHILE POLYURETHANE FOAM AND TRIPLEGLAZING ENSURE A HIGH DEGREE OF THERMAL ISOLATION A BUILTIN VENTILATION SYSTEM COUPLED TO A HEAT EXCHANGER HELPS REDUCE HEAT LOSS AN ETAP HOUSE REQUIRES 75 LESS ENERGY TO HEAT THAN A TRADITIONAL ONE MR JORIS SAYS BY AIMING FOR HIGH ENERGY EFFICIENCY ETAP HOUSES SURPASS THE STRICTEST ENERGY REQUIREMENTS IMPOSED THROUGHOUT THE EC WHERE MANY LOCAL AUTHORITIES ARE INTRODUCING THEIR OWN VARYING PRESCRIPTIONS IN BELGIUM FOR EXAMPLE THE NATION'S TWO REGIONS OF FLANDERS AND WALLONIA HAVE RECENTLY IMPOSED DIFFERENT STANDARDS SO FAR HOWEVER ETAP HASN'T MANAGED TO ADAPT ITS HOUSES TO LOCAL TASTES AND BUILDING REGULATIONS THUS RATHER THAN SELL COMPLETED HOUSES AS IT DOES IN BELGIUM ETAP PLANS TO EXPORT PREFABRICTED MODULES TO LOCAL BUILDERS BUT ETAP WILL REMAIN ILLEQUIPPED TO MEET CERTAIN ARCHITECTURAL CONSTRAINTS MASS PRODUCTION OF HOUSES AS IT'S DONE IN THE US OR JAPAN IS TOTALLY UNTHINKABLE IN EUROPE SAYS MR JORIS AND THERE'S NOTHING THE EC CAN DO EXPORTING YACHTS IS FAR SIMPLER THAN EXPORTING HOUSES EXCEPT FOR ONE NOTABLE EXCEPTION THERE IS HARDLY ANY REGULATION AT ALL THOUGH THE EC COMMISSION HAS BEEN WORKING ON A PROPOSED YACHTSAFETY DIRECTIVE THE IDEA APPEARS SHELVED AMID OPPOSITION FROM THE INDUSTRY AND GOVERNMENTS WARY OF INTRUSIVE REGULATION ONLY FRANCE HAS RIGID NATIONAL SAFETY SPECIFICATIONS IMPOSED IN THE 1960S AIMED AT HELPING TO KEEP NONFRENCH PRODUCTS OUT THE TACTIC HAS SUCCEEDED BRILLIANTLY FRANCE IS NOW THE WORLD'S BIGGEST BUILDER AND EXPORTER OF YACHTS ETAP'S FIRST SAILING BOAT LAUNCHED IN 1970 WAS DESIGNED TO MEET FRENCH SPECIFICATIONS THE PRODUCT WAS PRINCIPALLY TARGETED AT GERMAN DUTCH BRITISH BELGIAN AND FRENCH MARKETS BUT IN FRANCE ETAP FACED A MAJOR PSYCHOLOGICAL BARRIER WHERE THERE'S A NEGATIVE ATTITUDE TOWARD ANYTHING THAT'S NOT FRENCH TO SKIRT THAT OBSTACLE ETAP NOW USES WELLKNOWN FRENCH NAVAL ARCHITECTS TO DESIGN MANY OF ITS BOATS WITH A FRENCH FLAVOR ETAP'S ADVERTISING THERE IS CAREFUL NEVER TO MENTION THAT THE BOATS ARE BUILT IN BELGIUM TO THE AVERAGE FRENCH YACHTSMAN ETAP IS FRENCH LIGHTING PRODUCTS THE CORE OF ETAP'S BUSINESS OFFER A CHOICE AREA FOR NITTYGRITTY CONFLICTS BETWEEN SINGLEMARKET AMBITIONS AND NATIONAL PROTECTIONISM A WHOLE RANGE OF ECWIDE NORMS FOR LIGHTING FIXTURES ARE VOLUNTARY TO BE FOLLOWED BY THE MANUFACTURER MEANWHILE SEVERAL KEY PRODUCTS REMAIN SUBJECT TO NATIONAL SAFETY STANDARDS EVEN AFTER YEARS OF DEBATE CENELEC THE BRUSSELSBASED EUROPEAN STANDARDIZATION AGENCY HAS BARELY BEGUN DEVISING A COMMON ELECTRIC PLUG STANDARD ETAP'S INDUSTRIAL AND HOME LIGHTING PRODUCTS ARE MOSTLY COVERED BY ECWIDE MINIMUM STANDARDS IN INDUSTRIAL LIGHTING EUROPEAN COUNTRIES HAVE LONG DEVELOPED NORMS THAT ARE COMPATIBLE THUS IT IS EASY TO MAKE A PRODUCT THAT WILL MEET MOST NATIONAL NORMS THE MAIN EXCEPTION IS BRITAIN WHERE UTILITIES SUPPLY ELECTRICITY AT 240 VOLTS WHILE CONTINENTAL NETWORKS ALL FUNCTION ON 220 TO 230 VOLTS ETAP THUS EXPORTS MOST OF ITS LIGHTING PRODUCTS TO GERMANY THE NETHERLANDS AND FRANCE IN FRANCE HOWEVER IT USES ANOTHER NAME CLAREL ONCE AGAIN TO OVERCOME CHAUVINISTIC BUYING REFLEXES AND HIDE OUR TRUE IDENTITY MR JORIS SAYS THOUGH THERE ARE NO REGULATORY BARRIERS SALES OF ETAP'S LIGHTING PRODUCTS IN ITALY AND SPAIN HAVE BEEN SLOW MR JORIS SAYS THAT IS BECAUSE HIS PRODUCTS FACE A BARRIER IN MARKETS WHERE PURCHASERS TRADITIONALLY STRESS LOW PRICE OVER QUALITY BUT ETAP HAS ADAPTED ITS MARKETING STRATEGY TO TRY TO CONVINCE THOSE CUSTOMERS THAT HIGHER QUALITY IS WORTH THE PRICE RATHER THAN SELL THROUGH AGENTS REPRESENTING SEVERAL BRANDS ETAP IS BUILDING ITS OWN FOREIGN MARKETING NETWORK TO HELP SELL ITS HIGHEND PRODUCTS IN NEW MARKETS ETAP IS ALSO ONE OF EUROPE'S LEADING MAKERS OF SAFETY LIGHTING PRODUCTS LIGHTS THAT SWITCH ON AUTOMATICALLY IN EMERGENCIES SUCH AS FIRE OR ELECTRICAL FAILURE THIS IS A MARKET WITH PLENTY OF INCOMPATIBLE NATIONAL NORMS IN THE ABSENCE OF ANY COMMON EC STANDARD MANUFACTURERS HAVE HAD THE THEORETICAL RIGHT TO SELL THEIR PRODUCTS ECWIDE SINCE JAN 1 IN PRACTICE THOUGH THAT ISN'T EASY BECAUSE NATIONAL GOVERNMENTS CAN CLAIM THE RIGHT TO KEEP OUT UNSAFE FOREIGN PRODUCTS FRENCH LAW FOR EXAMPLE REQUIRES THAT SAFETY LIGHTS BE ABLE TO OPERATE IF CUT OFF FROM OUTSIDE POWER SOURCES FOR ONE HOUR IN BELGIUM THE MINIMUM IS TWO HOURS THE LOWER NATIONAL REQUIREMENT ALLOWS FRENCH MANUFACTURERS TO UNDERCUT ETAP'S PRICES EVEN IF THE EC SETS A UNIFORM STANDARD MR JORIS BELIEVES NATIONAL BUYING HABITS WILL CONTINUE TO LIMIT THE CROSSBORDER FLOW OF GOODS BECAUSE THEY HAVE LESS STRINGENT NORMS THE ITALIANS AND THE FRENCH WILL HAVE A HARD TIME SELLING THEIR PRODUCTS IN THE BENELUX OR GERMANY WHERE CUSTOMERS ARE USED TO HIGHER STANDARDS MR JORIS CONTENDS ON THE OTHER HAND ETAP WILL FIND IT DIFFICULT TO SELL MORE EXPENSIVE PRODUCTS IN COUNTRIES WHERE LOWER STANDARDS AND LOWER PRICES PREDOMINATE MR JORIS DOES EXPECT ECWIDE STANDARDIZATION BUT IT'LL TAKE A FEW YEARS ETAP'S RANGE OF HIGHRESOLUTION SCREENS MEETS FEW NATIONAL BARRIERS FOR THE SIMPLE REASON THAT THERE ARE FEW GOVERNMENTIMPOSED STANDARDS THE NORMS THAT DO EXIST ARE WORLDWIDE MOST OF THEM ESTABLISHED BY THE US SOFTWARE INDUSTRY MR JORIS SAYS ALTHOUGH IT WILL TAKE TIME BEFORE THE EC ESTABLISHES ONE MARKET DEVOID OF NATIONAL BARRIERS HE SEES ECONOMIC INTEGRATION AS AN IRREVERSIBLE PHENOMENON DESPITE CURRENT DIFFICULTIES CONCERNING THE MAASTRICHT TREATY AND THE FUTURE PATH OF THE EC THE SINGLE MARKET WILL EXPOSE SMALL COMPANIES SUCH AS ETAP TO THE FULL BRUNT OF PANEUROPEAN COMPETITION ETAP WILL BE SLUGGING IT OUT WITH FAR BIGGER EUROPEAN COMPETITORS IT'LL BE DAVID AGAINST GOLIATH WE NEED TO BE MORE INTELLIGENT MORE ALERT AND MORE FLEXIBLE THAN THE BIG PANEUROPEAN CORPORATIONS HE SAYS 9301180085 930118 WORKERS TAKE NOTE NO UNION CARD NO INAUGURATION BY DANIEL J BENNET RECENT EVENTS SURROUNDING PRESIDENTELECT CLINTON'S INAUGURATION ARE CAUSING MORE THAN A FEW OF US IN THE BUSINESS COMMUNITY TO GROW UNEASY ABOUT OUR PROSPECTS OF HAVING A VOICE IN THE NEW ADMINISTRATION DURING THE PAST COUPLE OF WEEKS CATERERS HAVE BEEN FIRED VENDORS AND CONTRACTORS HAVE BEEN REPLACED AND INVITATIONS HAVE BEEN RESCINDED TO PARTICIPATE IN THE INAUGURAL FESTIVITIES WHY BECAUSE THE EMPLOYEES OF THESE COMPANIES ARE NOT REPRESENTED BY A UNION IN ONE INCIDENT AN ENTIRE PRINTING JOB WAS THROWN OUT AFTER THE INAUGURAL COMMITTEE DISCOVERED THAT THE UNION BUG OR SEAL WHICH ACCOMPANIES EVERY UNION PRINTING JOB WAS MISSING IN THE CASE OF THE ASSOCIATED BUILDERS & CONTRACTORS THE TRADE GROUP FOR WHICH I WORK NO CONTRACTS WERE MADE BUT WE WERE INVITED TO PARTICIPATE IN THE INAUGURAL PARADE BY SUPPLYING SEVERAL CONSTRUCTION WORKERS TO RIDE A FLOAT SYMBOLIZING THE BUILDING OF AMERICA WE TOLD THE INAUGURAL COMMITTEE THAT WE WOULD BE HONORED TO PARTICIPATE AND WE WOULDN'T HAVE ANY TROUBLE PULLING THE WORKERS TOGETHER EVERYTHING IT APPEARED WAS SET AFTER MAKING A COUPLE OF CALLS AND LINING UP THE PARTICIPANTS WHOM BY THE WAY WE WOULD HAVE PAID FOR MISSING A DAY'S WORK WE WERE AGAIN CONTACTED BY MR CLINTON'S PEOPLE THIS TIME THEY WANTED TO KNOW IF WE WERE A UNION OR NONUNION OPEN SHOP ORGANIZATION WHEN WE EXPLAINED THAT OUR MEMBERS REPRESENTED THE OPEN SHOP THERE WAS A LONG PAUSE ON THE OTHER END OF THE LINE THE INAUGURAL STAFFER THEN ASKED US TO HOLD UP ON EVERYTHING HE SAID HE WOULD GET BACK TO US THREE DAYS LATER NOT TO OUR SURPRISE WE WERE TOLD SOMEWHAT SHEEPISHLY THAT MR CLINTON WOULDN'T NEED OUR WORKERS AFTER ALL SINCE THEN SEVERAL REPORTS HAVE BEEN PUBLISHED RELATING OTHER SIMILAR INCIDENTS A PATTERN IS TAKING SHAPE UNLIKE US ONE FIRED CATERING FIRM DID NOT CASUALLY DISMISS ITS TERMINATION IN FACT THE COMPANY PLANS TO FILE SUIT FOR BREACH OF CONTRACT WHAT DOES ALL THIS MEAN IT COULD SIMPLY REFLECT OVERZEALOUS STAFFERS AND NOT NECESSARILY AN EDICT FROM TOP CLINTON BRASS THROUGHOUT THE CAMPAIGN WE WERE TOLD MR CLINTON IS A DIFFERENT KIND OF DEMOCRAT FOR MANY OF US IN THE BUSINESS COMMUNITY THIS MEANT A DEMOCRAT WHO IS NOT AT THE BECK AND CALL OF ORGANIZED LABOR WE WERE ALSO TOLD THIS WOULD BE AN INCLUSIVE ADMINISTRATION THAT WOULD EMBRACE ALL AMERICANS INCLUDING WE AGAIN PRESUMED WORKERS IN THE OPEN SHOP WE DO NOT QUESTION THE HISTORIC AND INFLUENTIAL ROLE ORGANIZED LABOR HAS PLAYED IN THIS COUNTRY ON BEHALF OF THE WORKER BUT THE FACT REMAINS THAT UNIONS REPRESENT ONLY 11 OF THE WORK FORCE CAN 89 OF THE WORKERS IN THIS COUNTRY EXPECT TO SPEND THE NEXT FOUR YEARS ON THE OUTSIDE EXCLUDED FROM HELPING TO PURSUE THE CLINTON ADMINISTRATION'S STATED GOAL OF MAKING AMERICA MORE COMPETITIVE AT HOME AND ABROAD SUCH AN EXCLUSION WOULD NOT BODE WELL FOR AMERICAN BUSINESS OR FOR THE AMERICAN WORKER MR BENNET IS EXECUTIVE VICE PRESIDENT OF ASSOCIATED BUILDERS & CONTRACTORS IN WASHINGTON DC 9301180084 930118 ECONOMY KANTOR PLEDGES TO DISQUALIFY HIMSELF FROM ISSUES INVOLVING CLIENTS FOR A YEAR BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US TRADE REPRESENTATIVEDESIGNATE MICKEY KANTOR SAID HE WOULD DISQUALIFY HIMSELF FOR ONE YEAR ON MATTERS DIRECTLY INVOLVING HIS LAW FIRM AND HIS CLIENTS BUT NOT ON BROAD TRADE ISSUES WHERE THOSE CLIENTS HAVE A STAKE IN THE OUTCOME MR KANTOR A LAWYERLOBBYIST AT THE POLITICALLY INFLUENTIAL FIRM OF MANATT PHELPS PHILLIPS & KANTOR HAS RUN INTO OPPOSITION BECAUSE HE IS INEXPERIENCED IN TRADE MATTERS AND HAS POTENTIAL CONFLICTS OF INTEREST INVOLVING HIS AND HIS FIRM'S CLIENTS MR KANTOR PERSONALLY REPRESENTED SUZUKI MOTOR CO ON SAFETY QUESTIONS INVOLVING ITS SAMURAI UTILITY VEHICLE THAT COMPANY IS AT THE CENTER OF A TRADE DISPUTE INVOLVING THE IMPORT OF JAPANESE MINIVANS AND MANATT PHELPS REPRESENTS NEC CORP THE BIG JAPANESE ELECTRONICS AND SEMICONDUCTOR COMPANY THE TRADE REPRESENTATIVE'S OFFICE MUST DECIDE EARLY NEXT YEAR WHETHER TO PRESS JAPAN TO EXTEND AN AGREEMENT GOVERNING JAPANESE IMPORTS OF SEMICONDUCTORS IN WRITTEN RESPONSES TO QUESTIONS POSED BY THE SENATE FINANCE COMMITTEE MR KANTOR SAID HE WOULD DISQUALIFY HIMSELF FROM MATTERS INVOLVING CLIENTS WHICH HE DIDN'T NAME FOR ONE YEAR BUT THE 53YEAROLD LOBBYIST WHOSE CONFIRMATION HEARING IS TO BEGIN TOMORROW SAID HE WOULDN'T DISQUALIFY HIMSELF FROM QUESTIONS INVOLVING WHOLE INDUSTRIES SUCH AS SEMICONDUCTORS OR AUTOS A BROADER RECUSAL POTENTIALLY IMMOBILIZES HIM AS TRADE CHIEF SAID A CLINTON TRANSITION OFFICIAL HIS RECUSAL COULD SWALLOW UP THE OFFICE MR KANTOR ALSO HAS PLEDGED THAT HE WON'T MEET PROFESSIONALLY WITH ANY OF ASSOCIATES FROM MANATT PHELPS DURING HIS TENURE AS TRADE REPRESENTATIVE THE TRANSITION OFFICIAL SAID MANATT PHELPS LAWYERS WOULD HOWEVER BE ABLE TO PRESS CASES BEFORE LOWER RANKING OFFICIALS AT THE TRADE REPRESENTATIVE'S OFFICE THIS IS AN EXTRA MEASURE DESIGNED TO DEAL WITH THE PERCEPTION THAT MR KANTOR'S FORMER ASSOCIATES WOULD HAVE SPECIAL ACCESS THE OFFICIAL SAID ANOTHER CLINTON NOMINEE WHO HAS BEEN CRITICIZED FOR POTENTIAL CONFLICTS COMMERCE SECRETARYDESIGNATE RON BROWN PLEDGED THIS WEEKEND TO SELL HIS INTERESTS IN TWO PENSION FUND COMPANIES PEBSCO MUNICIPAL EMPLOYEES SECURITIES CORP AND CAPITAL PEBSCO HE RECEIVED FROM 90000 TO 140000 IN INCOME AND DIVIDENDS FROM THE COMPANIES LAST YEAR MR BROWN ALSO SAID THAT HE WON'T HAVE CONTACTS WITH ASSOCIATES FROM HIS LAW FIRM PATTON BOGGS & BLOW MISSISSIPPI SEN TRENT LOTT A MEMBER OF THE REPUBLICAN LEADERSHIP HAD SENT MR BROWN LETTERS QUESTIONING HIS PLAN TO SEEK WAIVERS THAT WOULD HAVE ALLOWED HIM TO CONTINUE WORKING WITH AT LEAST PEBSCO MUNICIPAL WHILE HE WAS COMMERCE CHIEF A SPOKESWOMAN FOR MR BROWN SAID HE HAD BEEN CONSIDERING SELLING THE STAKES SINCE THE MATTER WAS FIRST BROACHED DURING A SENATE FINANCE COMMITTEE HEARING EARLY THIS MONTH THE WASHINGTON POST FIRST REPORTED ON MR BROWN'S DIVESTITURE PLANS MR KANTOR ALSO TOLD THE FINANCE COMMITTEE THAT HE WAS QUALIFIED FOR THE TRADE SLOT BY DINT OF HIS INVOLVEMENT IN HUNDREDS OF NEGOTIATIONS INVOLVING ENERGY AGRICULTURE AND AVIATION MATTERS HE ADDED THAT HE HAD BEEN SPECIFICALLY INVOLVED IN BUILDING COALITIONS HE SAID THAT IS AN IMPORTANT FUNCTION OF THE TRADE REPRESENTATIVE WHO MUST SELL TRADE DEALS IN CONGRESS 9301180083 930118 TECHNOLOGY INFORMATION AGE ATTENTION CLINTON AVOID EMAIL OVERLOAD BY WILLIAM M BULKELEY COMPANY PRESIDENTS WHO USE ELECTRONIC MAIL HAVE SOME ADVICE IN CASE PRESIDENTELECT CLINTON ACTUALLY GETS EMAIL ON HIS WHITE HOUSE DESKTOP BE CAREFUL OF EMAIL OVERLOAD IT'S AS ADDICTIVE AS PLAYING A VIDEO GAME YOU CAN SIT THERE READING IT FOR HOURS SAYS RUSSELL FRYE PRESIDENT OF FRYE COMPUTER SYSTEMS A BOSTONBASED SOFTWARE COMPANY HE SAYS HE GOT 30000 PIECES OF EMAIL LAST YEAR AND SPENDS TWO TO SIX HOURS A DAY ON IT HOW DOES HE STILL RUN THE COMPANY I WORK 80 TO 100 HOURS A WEEK AND I DON'T TAKE VACATIONS I COULDN'T LIVE WITHOUT EMAIL HE SAYS EMAIL HAS SPREAD LIKE KUDZU THROUGH MUCH OF CORPORATE AMERICA BY SENDING SHORT INFORMAL MESSAGES OVER COMPUTER NETWORKS PEOPLE HAVE CREATED A NEW FORM OF COMMUNICATION AN EMAIL MESSAGE IS LESS FORMAL THAN A PAPER MEMO AND LESS INTRUSIVE THAN A PHONE CALL IT CAN BE STORED ON A COMPUTER DISK AND THEN SCANNED OR FORWARDED USING A KEY WORD ENTHUSIASTS SAY THAT INSIDE A COMPANY IT ENCOURAGES COOPERATION AND FLATTENS HIERARCHIES PRESIDENTELECT CLINTON'S PLANS FOR EMAIL AREN'T CLEAR ESPECIALLY IN LIGHT OF THE LEGAL WRANGLING BETWEEN THE BUSH WHITE HOUSE AND A FEDERAL JUDGE OVER EMAIL MESSAGES BEFORE THE FLAP THE CLINTON CROWD WHICH USED EMAIL EXTENSIVELY DURING THE CAMPAIGN AND THE TRANSITION PLANNED TO EXPAND USE OF EMAIL GREATLY INCLUDING LINKING THE WHITE HOUSE WITH OTHER GOVERNMENT BODIES BUT THE FIGHT OVER THE BUSH ADMINISTRATION'S EMAIL PROMPTED BY DISCLOSURES ABOUT EMAIL IN THE IRANCONTRA AFFAIR MIGHT LEAD MR CLINTON'S PEOPLE TO RECONSIDER THEIR PLANS ON FRIDAY THE BUSH ADMINISTRATION WAS TOLD BY A FEDERAL APPEALS PANEL TO PRESERVE ELECTRONIC COPIES OF ANY INFORMATION IT PURGED FROM ITS COMPUTER SYSTEM THAT ISSUE ASIDE THE CLINTON TEAM MIGHT PONDER A MORE MUNDANE PROBLEM UNFETTERED EMAIL COULD MEAN THAT MR CLINTON HEARS MORE THAN HE WANTS FROM BUREAUCRATS WHO NORMALLY CAN'T GET PAST THE PRESIDENT'S GATEKEEPERS JUNK EMAIL IS A PROBLEM IF YOU DON'T WATCH OUT YOU'LL GET 500 MESSAGES A DAY ACKNOWLEDGES BILL KRAUSE A COMPUTER MANAGER FOR THE TRANSITION TEAM WHILE A NEW GENERATION OF EMAIL SOFTWARE HELPS SCREEN OUT JUNK EMAIL NECESSARY MESSAGES PILE UP FAST THERE'S EVEN A MACHO THING ABOUT HOW MUCH EMAIL YOU GET SAYS JIM MANZI PRESIDENT OF LOTUS DEVELOPMENT CORP WHOSE CCMAIL SOFTWARE IS THE INDUSTRY LEADER AT MOST COMPANIES AND GOVERNMENT AGENCIES EMAIL STOPS SHORT OF THE EXECUTIVE SUITE EVEN THOUGH MANY CHIEF EXECUTIVE OFFICERS ARE FORMALLY ON THE NETWORK MOST OF THEM HANDLE EMAIL THE WAY THEY DO POSTOFFICE MAIL THEY TELL THEIR SECRETARIES TO SORT IT FILE IT FORWARD IT DELEGATE IT OR PRINT IT OUT FOR THEM TO LOOK AT IF THEY WANT TO SEND EMAIL THEY DICTATE TO THE SECRETARY WHO THEN SENDS IT OUT BUT IN MOST PERSONAL COMPUTER AND NETWORKING COMPANIES EMAIL ACCESS TO THE PRESIDENT IS PART OF THE CULTURE LAST WEEK AT THE NETWORLD SHOW IN BOSTON CEOS DESCRIBED A LOVEHATE RELATIONSHIP WITH THE STUFF AS A CEO TIME IS ALWAYS A PROBLEM YOU'RE GETTING BOMBARDED ON ALL SIDES YOU GET COPIED ON A LOT OF STUFF YOU DON'T WANT TO SEE AND WHEN YOU GO ON THE ROAD IT STACKS UP SAYS KING LEE PRESIDENT OF XTREE CO A NETWORK SOFTWARE COMPANY BASED IN SAN LUIS OBISPO CALIF BUT IT SAVES A LOT OF WALKING AND A LOT OF TALKING AND EVERYTHING IS CONDENSED I USE IT EVERY DAY ONE REASON PEOPLE GET SO MANY MESSAGES IS THAT SENDING COPIES INVOLVES MERELY ADDING ANOTHER NAME TO THE DISTRIBUTION LIST BECAUSE IT'S SO EASY CEOS GET COPIES OF WEEKLY STATUS REPORTS FOR PROJECTS THEY DON'T NEED TO KNOW ABOUT PRESIDENTS HAVE VARIOUS STRATEGIES FOR HANDLING IT DAVID MAHONEY PRESIDENT OF BANYAN SYSTEMS INC WESTBOROUGH MASS SAYS IT'S EASY TO READ THROUGH IT AT THE SAME TIME YOU'RE TALKING ON THE PHONE YOU'RE DUPLEXING' THAT'S TECHIE TALK FOR DOING TWO THINGS AT ONCE MARK TEBBE PRESIDENT OF LANTE CORP A CHICAGO NETWORKINTEGRATION FIRM SAYS THAT WHEN SOMEONE SENDS HIM A DOCUMENT HE DOESN'T NEED TO SEE I TAKE THE MESSAGE AND SEND IT BACK I SAY DON'T WASTE MY TIME' IT'S BEHAVIOR MODIFICATION AT 3COM CORP A SANTA CLARA CALIF NETWORKING COMPANY WITH 2000 EMPLOYEES AROUND THE WORLD ERIC BENHAMOU PRESIDENT SAYS HE CAN HANDLE HIS 200 DAILY EMAIL MESSAGES IN HALF AN HOUR BY READING FULLY ONLY THE LAST MESSAGE IN A SERIES AND SCANNING OTHERS WHILE SOME PEOPLE POSTPONE READING THEIR EMAIL UNTIL LUNCH TIME MR BENHAMOU SAYS HE READS IT ALL FIRST THING SUBORDINATES' ACCESS TO CEOS CAN PAY OFF MR BENHAMOU SAYS ONE SOFTWARE PROJECT WAS COMPLETED ON TIME BECAUSE THE ENGINEER IN CHARGE SENT HIM A NOTE ASKING THAT HEAT AND LIGHTS BE LEFT ON IN HIS BUILDING DURING THE CHRISTMAS SHUTDOWN IF HE'D TRIED TO MAKE AN APPOINTMENT TO ASK ME HE WOULDN'T HAVE GOTTEN IN UNTIL FEBRUARY HE SAYS TECHNOLOGY OFFERS HOPE OF CONTROLLING EMAIL OVERLOAD MANY COMPANIES ARE STARTING TO USE GROUPWARE PRODUCTS LIKE LOTUS'S NOTES OR MICROSOFT CORP'S WORKGROUP FOR WINDOWS THAT LET REPORTS BE STORED ON ELECTRONIC BULLETIN BOARDS WHERE THEY CAN BE CHECKED BY AUTHORIZED PEOPLE WHEN THEY WANT COMPANYWIDE MESSAGES FROM THE HUMAN RESOURCES DEPARTMENT OR PUBLIC RELATIONS ALSO CAN BE STORED ON BULLETIN BOARDS RATHER THAN SENT TO EACH INDIVIDUAL NEW MAIL PACKAGES SUCH AS MICROSOFT MAIL FOR WINDOWS LET RECIPIENTS SORT THEIR MAIL BY SENDER STATUS OR ACTION REQUESTED BEYOND INC CAMBRIDGE MASS SELLS SOFTWARE THAT LETS USERS SET UP CATEGORIES IN ADVANCE TO SORT MAIL BASED ON THE SENDER THE DATE SENT THE SUBJECT AND SELECTED KEY WORDS THE PACKAGE WILL AUTOMATICALLY FORWARD SOME MAIL SAVE SOME AND THROW OUT OTHERS THE NEXT VERSION OF LOTUS'S CCMAIL WILL HAVE SIMILAR CAPABILITIES BUT LETTING COMPUTERS HANDLE MAIL MAKES MANY PEOPLE NERVOUS SAYS MR FRYE YOU GET THE FEELING THAT IF YOU HAVEN'T READ EVERYTHING YOU MIGHT HAVE MISSED THE REALLY IMPORTANT THING JOHN R WILKE CONTRIBUTED TO THIS ARTICLE 9301180082 930118 SALOMON JOLTED BY DEPARTURE OF SENIOR BOND EXECUTIVE BY MICHAEL SICONOLFI AND CONSTANCE MITCHELL STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ONE OF SALOMON BROTHERS INC'S MOST POWERFUL BOND EXECUTIVES SUDDENLY QUIT JARRING THE BIG TRADING COMPANY AND THROWING INTO QUESTION THE FUTURE OF ITS PROFITABLE BOND OPERATIONS ERIC R ROSENFELD WHO HELPED LEAD SALOMON'S PUSH INTO LUCRATIVE BONDARBITRAGE TRADING SAYS HE RESIGNED AS COHEAD OF THE FIRM'S FIXEDINCOME GROUP SIMPLY BECAUSE IT WAS TIME TO MOVE ON BUT PEOPLE FAMILIAR WITH THE SALOMON INC UNIT SAY MR ROSENFELD WAS FRUSTRATED OVER HIS HEAVY WORKLOAD AMONG OTHER THINGS FOR MORE THAN A YEAR THESE PEOPLE SAY MR ROSENFELD HAS GRUMBLED ABOUT THE LONG WORKDAYS AND ENORMOUS BURDENS OF MANAGING SALOMON'S BOND DEPARTMENT ONE OF THE LARGEST ON WALL STREET SAYS MR ROSENFELD WELL IF I WAS EXTREMELY HAPPY I WOULD NOT BE RESIGNING MR ROSENFELD'S MOVE THREATENS TO PROMPT OTHER BOND DEPARTURES AT SALOMON THE 39YEAROLD MR ROSENFELD A MEMBER OF SALOMON'S POWERFUL EXECUTIVE COMMITTEE IS WELLLIKED WITHIN THE FIRM WITH MUCH FANFARE HE TOOK OVER THE GOVERNMENTBOND DESK IN AUGUST 1991 FROM PAUL MOZER THE CENTRAL FIGURE IN SALOMON'S TREASURYAUCTION BIDDING SCANDAL AND MR ROSENFELD HAS BEEN A MENTOR TO MANY OF SALOMON'S BONDARBITRAGE TRADERS A GROUP THAT GENERATED ABOUT 400 MILLION IN PROFIT FOR SALOMON IN 1990 AND FAT PAYCHECKS FOR THEMSELVES MR ROSENFELD RECEIVED MORE THAN 10 MILLION IN CASH AND SALOMON STOCK IN 1990 PEOPLE FAMILIAR WITH SALOMON SAID HIS COLLEAGUE LAWRENCE HILIBRAND RECEIVED 23 MILLION MR ROSENFELD DECLINES TO DISCUSS HIS COMPENSATION MR ROSENFELD SAYS HE ABSOLUTELY HAS NO PLANS TO TAKE ANY OTHER BONDARBITRAGE TRADERS WITH HIM YOU'LL SEE MR ROSENFELD SAYS WHEN I RUN INTO YOU NINE MONTHS FROM NOW I WILL BE THE ONLY BONDARBITRAGE EXECUTIVE TO HAVE LEFT STILL HIS DEPARTURE IS A BLOW TO SALOMON'S SPRAWLING FIXEDINCOME OPERATIONS AN IMPORTANT SOURCE OF THE FIRM'S PROFITS SALOMON'S PRINCIPAL TRADING REVENUE WHICH INCLUDES BONDARBITRAGE TRADING REPRESENTED TWOTHIRDS OF ITS REVENUE MINUS INTEREST EXPENSE FOR 1992'S FIRST NINE MONTHS SALOMON TRADERS CALLED FRIDAY WHEN MR ROSENFELD'S RESIGNATION WAS ANNOUNCED A BLACK DAY ON THE BOND DESK SALOMON'S BOND GROUP NOW WILL BE RUN SOLELY BY WILLIAM A MCINTOSH WHO HAD JOINTLY RUN THE GROUP WITH MR ROSENFELD MR MCINTOSH 53 ALSO IS A MEMBER OF SALOMON'S 12MEMBER EXECUTIVE COMMITTEE WHICH RUNS THE DAYTODAY OPERATIONS OF THE FIRM MR MCINTOSH DECLINED TO COMMENT MEANWHILE SOME SALOMON EXECUTIVES SAY MR ROSENFELD'S DEPARTURE SIGNALS THAT TALKS ABOUT REHIRING FORMER SALOMON VICE CHAIRMAN JOHN MERIWETHER MAY HAVE COOLED TOP SALOMON EXECUTIVES RECENTLY BEGAN DISCUSSIONS WITH THE 45YEAROLD MR MERIWETHER ONE OF WALL STREET'S MOST SUCCESSFUL BOND TRADERS MR ROSENFELD SAYS HE BACKED A MOVE WITHIN THE FIRM TO REHIRE MR MERIWETHER SOME SALOMON EXECUTIVES BELIEVE THAT IF MR MERIWETHER DOESN'T REJOIN THE FIRM AND INSTEAD LAUNCHES HIS OWN OPERATION OR MOVES TO ANOTHER SECURITIES FIRM SOME OF SALOMON'S BOND TRADERS WOULD BE LIKELY TO FOLLOW HIM BUT A TWIST LAST WEEK IN THE GOVERNMENT'S CASE AGAINST MR MOZER COULD SIDETRACK THE MERIWETHER DISCUSSIONS SOME SALOMON EXECUTIVES SAY A DAY AFTER A PLEA AGREEMENT BETWEEN MR MOZER AND THE FEDERAL GOVERNMENT COLLAPSED PROSECUTORS FILED A BROADER INDICTMENT AGAINST MR MOZER AND THIS SALOMON EXECUTIVES SAY COULD LEAD TO THE POSSIBILITY THAT MR MERIWETHER MR MOZER'S FORMER BOSS MIGHT HAVE TO TESTIFY IN THE CASE AND HAMPER ANY RETURN TO SALOMON IN THE MEANTIME MR ROSENFELD SAYS HIS RESIGNATION HAD NOTHING TO DO WITH MR MERIWETHER ALTHOUGH HE CONCEDES THAT NO ONE WILL EVER BELIEVE IT MR ROSENFELD SAYS HIS DECISION HAD BEEN IN THE WORKS FOR THREE MONTHS AND THAT HE APPROACHED SALOMON BROTHERS' CHAIRMAN DERYCK MAUGHAN AND SALOMON INC CHAIRMAN ROBERT DENHAM ABOUT IT A WEEK AGO HE SAYS MESSRS MAUGHAN AND DENHAM ASKED HIM TO STAY ON BUT HE WOULDN'T BE MORE SPECIFIC IN A STATEMENT FRIDAY MR MAUGHAN CALLED MR ROSENFELD'S PERFORMANCE EXTRAORDINARY ADDING WE REGRET ERIC'S DECISION TO LEAVE HE DECLINED TO ELABORATE AS DID A SALOMON SPOKESMAN THOUGH MR ROSENFELD HASN'T YET DECIDED ON HIS PLANS HE SAYS MR MERIWETHER WILL BE ONE OF MY FIRST CALLS MR ROSENFELD IS ONE OF A COTERIE OF YOUNG HIGHTECH BOND TRADERS SCHOOLED AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY BOND ARBITRAGERS MAKE BETS ON CHANGES IN INTEREST RATES ON BONDS OF DIFFERENT MATURITIES GENERATING BIG PROFITS OR LOSSES THEY OFTEN USE RIGOROUS MATHEMATICAL METHODS TO DETERMINE THE APPROPRIATE PRICE RELATIONSHIPS BETWEEN BONDS BOND FUTURES AND BOND OPTIONS BEFORE JOINING SALOMON IN 1984 MR ROSENFELD WAS AN ASSISTANT PROFESSOR AT HARVARD BUSINESS SCHOOL SOME SALOMON INSIDERS SAY THERE WERE SIGNS OF MR ROSENFELD'S UNHAPPINESS FOR INSTANCE HE DIDN'T ATTEND AN ANNUAL SALOMON PARTY EARLIER THIS MONTH RAISING EYEBROWS AMONG SALOMON EXECUTIVES MR ROSENFELD SAYS HIS WIFE AND CHILDREN HAD THE FLU AND THAT MISSING THE BASH CERTAINLY WASN'T A STATEMENT OF HIS DISPLEASURE IN DECEMBER AFTER A NEARLY ONEYEAR SEARCH HE HIRED J GREGORY ERARDI A FORMER TRADER OF MORTGAGEBACKED SECURITIES TO RUN SALOMON'S GOVERNMENT BOND TRADING DESK AT THE TIME MR ROSENFELD APPEARED RELIEVED I FEEL SO MUCH BETTER I HAD WAY TOO BIG A PLATE HE SAID MR ROSENFELD WAS INSTRUMENTAL IN TRYING TO CHANGE THE CULTURE OF THE TRADING DESK FROM ONE THAT WAS DOMINATED BY A SMALL GROUP OF SWAGGERING SUPER TRADERS INTO AN OPERATION THAT RELIED ON A LARGER TEAM OF TRADERS WHO SPECIALIZED IN VARIOUS AREAS OF THE TREASURY MARKET HE ALSO TRIED TO REDUCE THE TRADERS HEAVY WORKLOAD FOR EXAMPLE HE SAID THAT SALOMON'S TREASURY BILL TRADER HAD HANDLED AN AVERAGE OF ABOUT 220 MILLION OF BILLS EACH DAY WHICH HE BELIEVED WAS FAR TOO MUCH FOR ONE INDIVIDUAL SEPARATELY WILLIAM H STRONG SALOMON'S HEAD OF INTERNATIONAL INVESTMENT BANKING RESIGNED TO HEAD US CORPORATE FINANCE AT MORGAN STANLEY GROUP INC MR STRONG 41 WILL BE BASED IN MORGAN STANLEY'S CHICAGO OFFICE AND WILL HAVE RESPONSIBILITY FOR CORPORATEFINANCE ACTIVITIES IN ALL DOMESTIC BRANCH OFFICES HE HAD BEEN BASED IN LONDON FOR SALOMON HIS RESPONSIBILITIES AT MORGAN STANLEY WERE HELD BY DOUG GRAY 47 WHO RECENTLY ANNOUNCED HE WILL BECOME AN ADVISORY DIRECTOR OF THE FIRM THIS SUMMER AND INTENDS TO RETURN TO INDUSTRY MR STRONG'S AGGRESSIVE STYLE HAD ALIENATED SOME OF HIS PEERS AT SALOMON SOME EXECUTIVES THERE SAY AMONG THE REASONS THAT HE DIDN'T RETURN TO SALOMON'S NEW YORK OFFICE WAS HIS STRAINED RELATIONSHIP WITH SOME INVESTMENT BANKERS THERE HIS GREATEST ASSET WAS HE WAS A HARDWORKING GUY WHO COULD WRITE BIG TICKETS SAID A SALOMON EXECUTIVE HIS APPOINTMENT IS EXPECTED TO BEEF UP MORGAN STANLEY'S CHICAGO OFFICE WHICH ISN'T ONE OF THE FIRM'S STRONGEST WALL STREET EXECUTIVES SAY RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9301180081 930118 THREE COMPANIES FACE ALLEGATIONS OF CONSPIRACY TO FIX BABY FOOD PRICES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S THREE BIGGEST BABY FOOD COMPANIES FACE ALLEGATIONS THAT THEY CONSPIRED TO FIX PRICES SINCE THE 1970S THAT ACCUSATION IS CONTAINED IN SIX VIRTUALLY IDENTICAL CLASSACTION LAWSUITS FILED IN US DISTRICT COURT IN NEWARK NJ IN RECENT DAYS ON BEHALF OF SEVERAL GROCERY CONCERNS DEFENDANTS GERBER PRODUCTS CO HJ HEINZ CO AND RALSTON PURINA CO ALL VIGOROUSLY DENY ANY WRONGDOING AND ONE PRIVATELY CHARACTERIZED THE SUITS AS NUISANCE LITIGATION SEVERAL PLAINTIFFS' ATTORNEYS IN THE BABY FOOD CASES HAVE BROUGHT PRICEFIXING SUITS IN THE PAST AGAINST COMPANIES IN THE RECORD ALBUM GLASS CONTAINER AND INFANT FORMULA INDUSTRIES IN SOME OF THOSE CASES THE COMPANIES ENTERED INTO MULTIMILLIONDOLLAR OUTOFCOURT SETTLEMENTS BUT IN THE GLASSCONTAINER CASES A JURY FOUND SEVERAL MANUFACTURERS GUILTY AS CHARGED WITHOUT PRESENTING EVIDENCE OF A CONSPIRACY THE BABY FOOD COMPLAINTS ALLEGE THAT THE THREE COMPANIES SECRETLY AGREED TO FIX RAISE MAINTAIN AND STABILIZE PRICES OF BABY FOOD SINCE AT LEAST 1975 AS A RESULT THE LAWSUITS SAY THE PLAINTIFFS AS WELL AS ALL PERSONS WHO BOUGHT BABY FOOD IN THE US DURING THE PAST 17 YEARS OVERPAID FOR IT THE SUITS WHICH ASK FOR A JURY TRIAL SEEK UNDETERMINED DAMAGES THE FOOD COVERED INCLUDES JARS OF STRAINED FRUITS AND VEGETABLES JUICES CEREALS BAKERY PRODUCTS AND EASILY CHEWABLE ITEMS POWDERED AND LIQUID INFANT FORMULA IS EXCLUDED FROM THE CASES IN 1991 FLORIDA RECOVERED 5 MILLION IN A CLASSACTION LAWSUIT ALLEGING A FORMULA PRICE CONSPIRACY BY SEVERAL MAKERS SUBSEQUENTLY SOME FOOD WHOLESALERS FILED SIMILAR CHARGES THE COMPANIES IN THE BABY FOOD SUITS WEREN'T INVOLVED IN THE FORMULA SUIT PLAINTIFFS IN THE BABY FOOD CASES INCLUDE JACOB BLINDER & SONS A NEWARK FOOD WHOLESALER LL HARRIS WHOLESALE GROCERY CORPUS CHRISTI TEXAS WISEWAY SUPERFOOD CENTER INC AND SUPERCENTER INC MERRILLVILLE IND SUPERMARKETS UNITED BROTHERS FINER FOODS INC A CHICAGO GROCER AND PETER J SCHMITT CO A WEST SENECA NY WHOLESALER AND SUPERMARKET OPERATOR WHICH HAS SOLD MOST OF ITS ASSETS AFTER A BANKRUPTCY FILING LAST YEAR NEITHER THE PLAINTIFFS NOR THEIR ATTORNEYS WOULD COMMENT ON THE LAWSUITS SPOKESMEN FOR THE DEFENDANT COMPANIES DISMISSED THE ALLEGATIONS AS UNFOUNDED WE BELIEVE THESE SUITS HAVE ABSOLUTELY NO MERIT SAID A SPOKESMAN FOR GERBER BASED IN FREMONT MICH GERBER CONSCIENTIOUSLY COMPLIES WITH ALL ANTITRUST LAWS AND DOES NOT PARTICIPATE IN ANY COLLUSIONARY PRACTICES OR ACTIVITIES A SPOKESMAN FOR PITTSBURGH'S HEINZ SAID THE COMPANY WAS EXAMINING THE COMPLAINT TO DETERMINE THE MOST EXPEDITIOUS WAY TO REMOVE IT FROM THE COURT'S DOCKET RALSTON WHOSE BEECHNUT UNIT MAKES AND SELLS BABY FOOD SAID THE ST LOUIS CONCERN INTENDS TO VIGOROUSLY DEFEND OUR INTERESTS AGAINST THE ALLEGATIONS ALSO NAMED A DEFENDANT WAS NESTLE HOLDINGS INC WHICH SOLD BEECHNUT TO RALSTON IN 1989 NESTLE A US SUBSIDIARY OF SWISS FOOD CONCERN NESTLE SA COULDN'T BE REACHED FOR COMMENT GERBER HAS ABOUT 70 OF THE US BABY FOOD MARKET WITH HEINZ AND BEECHNUT SPLITTING NEARLY ALL THE REST AS REPORTED IN RECENT MONTHS GERBER WAS STUNG WHEN IT RAISED PRICES 45 BUT NEITHER COMPETITOR IMMEDIATELY FOLLOWED SUIT AND INSTEAD ENGAGED IN DISCOUNTING AND OTHER PRICE PROMOTIONS IN AN APPARENT EFFORT TO ERODE GERBER'S DOMINANCE BOTH HAVE SINCE ALSO RAISED PRICES ANNUAL BABY FOOD SALES IN THE US ARE ESTIMATED AT NEARLY 1 BILLION 9301180080 930118 THAT OTHER CLINTON PROMISE ENDING WELFARE AS WE KNOW IT' BY DOUGLAS J BESHAROV DURING HIS PRESIDENTIAL CAMPAIGN BILL CLINTON PLEDGED THE END OF WELFARE AS WE KNOW IT HE PROMISED TO PROVIDE PEOPLE WITH THE EDUCATION TRAINING JOB PLACEMENT ASSISTANCE AND CHILD CARE THEY NEED FOR TWO YEARS SO THAT THEY CAN BREAK THE CYCLE OF DEPENDENCY AFTER TWO YEARS THOSE WHO CAN WORK WILL BE REQUIRED TO GO TO WORK EITHER IN THE PRIVATE SECTOR OR IN MEANINGFUL COMMUNITY SERVICE JOBS NOW AS MR CLINTON'S FLEDGLING ADMINISTRATION GRAPPLES WITH HOW TO IMPLEMENT THESE WORDS KEY ELEMENTS OF THE PRESIDENTELECT'S LIBERAL CONSTITUENCY ARE TRYING TO WATER THEM DOWN SIGNS OF THIS DISCORD EMERGED AT DONNA SHALALA'S CONFIRMATION HEARINGS LAST WEEK WHEN DEMOCRATIC SENATORS NOTING HOW LITTLE SHE HAS SAID ON THE SUBJECT SINCE BEING NOMINATED QUESTIONED HER COMMITMENT TO WELFARE REFORM BUT EVEN IF MR CLINTON'S CHOICE TO HEAD THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SUPPORTS HIS WELFARE PLAN AS SHE HAS PROMISED TO DO HER TASK AND MR CLINTON'S WILL BE ENORMOUSLY DIFFICULT THE BULK OF LONGTERM WELFARE RECIPIENTS ARE UNMARRIED MOTHERS MOST OF WHOM HAD THEIR FIRST BABY AS UNWED TEENAGERS THESE YOUNG MOTHERS DO NOT HAVE THE EDUCATION PRACTICAL SKILLS OR WORK HABITS NEEDED TO EARN A SATISFACTORY LIVING ABOUT HALF OF ALL UNWED TEEN MOTHERS GO ON WELFARE WITHIN ONE YEAR OF THE BIRTH OF THEIR CHILD 77 GO ON WITHIN FIVE YEARS ACCORDING TO THE CONGRESSIONAL BUDGET OFFICE NICK ZILL OF CHILD TRENDS INC CALCULATES THAT 43 OF WELFARE RECIPIENTS ON THE ROLLS FOR 10 YEARS OR MORE STARTED THEIR FAMILIES AS UNWED TEENS STEADY INCREASES IN UNWED PARENTHOOD AMONG ILLPREPARED YOUNG PEOPLE POSE THE CENTRAL CHALLENGE TO CONTEMPORARY EFFORTS TO FIGHT POVERTY IT IS WITHIN THIS CONTEXT THAT THE FIGHT OVER HOW TO IMPLEMENT MR CLINTON'S PROMISE WILL BE WAGED THOSE RECIPIENTS MOTIVATED TO IMPROVE THEIR LIVES SUCH AS MOST DIVORCED MOTHERS WILL PROBABLY DO WELL UNDER MR CLINTON'S PLAN BUT TO MAKE A REAL DENT IN WELFARE DEPENDENCY THE PLAN WILL HAVE TO APPLY TO UNWED MOTHERS WHO FORM THE BULK OF LONGTERM WELFARE RECIPIENTS THAT WILL NOT BE EASY YEARS OF INACTIVITY LEAVE THEIR MARK EVEN IN A STRONG ECONOMY BREAKING PATTERNS OF BEHAVIOR TAKES YEARS RICHLY FUNDED DEMONSTRATION PROGRAMS FOR EXAMPLE FIND IT EXCEEDINGLY DIFFICULT TO IMPROVE THE ABILITY OF THESE WOMEN TO CARE FOR THEIR CHILDREN LET ALONE TO BECOME ECONOMICALLY SELFSUFFICIENT EARNINGS IMPROVEMENTS IN THE REALM OF 6 ARE CONSIDERED SUCCESSES FOR POORLY EDUCATED YOUNG MOTHERS WHO HAVE SPORADIC WORK HISTORIES MOST PROGRAMS DON'T EVEN TRY TO DO SOMETHING WITH THE FATHERS THUS AFTER TWO YEARS OF THE SERVICES THAT MR CLINTON WOULD GIVE WELFARE RECIPIENTS MOST UNWED MOTHERS WILL STILL NOT BE ABLE TO SUPPORT THEMSELVES IMPOSING A WORK REQUIREMENT ON THEM WOULD MEAN THAT A LARGE PROPORTION WILL END UP IN SEMIPERMANENT COMMUNITY SERVICE JOBS A EUPHEMISM FOR HAVING THEM WORK TO EARN THEIR WELFARE BENEFITS USUALLY AT THE MINIMUM WAGE THE CLINTON CAMPAIGN ESTIMATES THAT ABOUT 15 MILLION YOUNG MOTHERS WOULD BE REQUIRED TO PARTICIPATE IN SUCH PROGRAMS MOST WILL NOT COME WILLINGLY AND MANY WILL DROP OUT THE EXPERIENCE OF TEENMOTHER DEMONSTRATION PROGRAMS OPERATED IN NEWARK AND CAMDEN NJ AND IN CHICAGO BETWEEN 1987 AND 1991 SUGGESTS THAT TO MAINTAIN HIGH LEVELS OF PROGRAM PARTICIPATION ABOUT HALF THE MOTHERS WILL HAVE TO BE PENALIZED WITH A REDUCTION OF BENEFITS AT LEAST ONCE THIS KIND OF WORKFARE PROGRAM BECAUSE OF ADDED COSTS FOR EDUCATION AND JOB TRAINING CHILD CARE WHILE THE MOTHERS WORK AND ADMINISTRATION TO ESTABLISH AND MONITOR PLACEMENTS IS MUCH MORE EXPENSIVE THAN THE CURRENT SYSTEM AT LEAST IN THE SHORT RUN CLINTON STAFFERS ESTIMATE THAT MONITORING EACH JOB WOULD COST 2100 ANNUALLY CHILD CARE FOR THE CHILDREN OF EACH MOTHER MANDATED TO WORK WOULD ADD 1300 THAT'S 3400 FOR OVERHEAD COSTS ABOUT THE SAME AS THE AVERAGE AID TO FAMILIES WITH DEPENDENT CHILDREN GRANT TO FAMILIES STRONG OPPOSITION TO MR CLINTON'S PROPOSALS IS ALREADY FORMING THE WELFARE POLICY ESTABLISHMENT HAS NEVER LIKED STRONG WORK REQUIREMENTS THAT FORCE POOR MOTHERS TO WORK AT VERYLOWPAYING JOBS EVEN IF ONLY PARTTIME EFFORTS TO IMPOSE WORK REQUIREMENTS DURING THE NIXON AND CARTER YEARS WERE DERAILED BY LABELING THEM AS SLAVEFARE SUCH ARGUMENTS STRIKE A RESPONSIVE CHORD AMONG SOME AMERICANS MOREOVER MANY REAL QUESTIONS REMAIN UNANSWERED ABOUT INSTITUTING A NATIONWIDE WORKFARE PROGRAM CAN WELFARE AGENCIES ENFORCE WORK REQUIREMENTS WITHOUT BEING OVERLY PUNITIVE WHAT ABOUT THOSE RECIPIENTS WHO ARE PREVENTED FROM RESPONDING BECAUSE OF PSYCHOLOGICAL PROBLEMS OR DRUG AND ALCOHOL ADDICTION WILL THEY BE PERMANENTLY PENALIZED OR AS SOME HAVE SUGGESTED WILL THEY BE EXEMPTED FROM WORK BECAUSE OF THEIR DISABILITIES CAN WE AVOID THE MEANINGLESS MAKEWORK JOBS OF THE PAST OR WILL THIS SIMPLY BE CETA II CAN ADEQUATE CHILD CARE BE PROVIDED FOR MILLIONS OF CHILDREN AND MOST IMPORTANT CAN ALL THIS BE DONE IN A WAY THAT ULTIMATELY REDUCES CASELOADS RATHER THAN INCREASES THEM THESE TOUGH QUESTIONS CALL FOR CAUTION IN PURSUING MR CLINTON'S PROMISE NOT A WHOLESALE RETREAT FROM IT THE TEMPTATION OF COURSE WILL BE TO EXEMPT THE MOST DEPENDENT YOUNG UNWED MOTHERS THE OPENING WOULD BE HIS PHRASE THOSE WHO CAN WORK WILL BE REQUIRED TO GO TO WORK IT WOULD BE EASY TO SAY THAT MOTHERS WITH YOUNG CHILDREN CANNOT WORK THIS WOULD BE A MISTAKE FIRST A WORK REQUIREMENT IS ONE OF THE BEST WAYS TO REDUCE THE ATTRACTION OF WELFARE FOR YOUNG PEOPLE WITH POOR EARNINGS PROSPECTS IF YOUNG PEOPLE KNOW THAT THE WELFARE AGENCY IS SERIOUS ABOUT MANDATING WORK THEY WILL BE LESS LIKELY TO VIEW LONGTERM AFDCRECIPIENCY AS A POSSIBLE LIFE OPTION SECOND MANDATED COMMUNITY SERVICE MAY BE THE ONLY WAY TO BUILD THE JOB SKILLS AND WORK HABITS OF THOSE WHO CANNOT SUPPORT THEMSELVES IN THE REGULAR JOB MARKET INACTIVITY IS BAD FOR EVERYONE IT CAN BE DEVASTATING FOR THOSE LOOSELY CONNECTED TO THE LABOR MARKET CHILD ABUSE DRUG ABUSE AND A WHOLE HOST OF SOCIAL PROBLEMS ARE ASSOCIATED WITH LONGTERM WELFARE DEPENDENCY A WORK REQUIREMENT WILL HELP TO REDUCE THEIR LEVELS THE PROBLEMS OF SOME YOUNG MOTHERS WILL PREVENT THEM FROM SATISFYING EVEN THIS MINIMAL OBLIGATION THESE YOUNG PEOPLE MAY NEED A MODERN VERSION OF THE 19TH CENTURY SETTLEMENT HOUSE WHERE COUNSELING EDUCATION AND OTHER ACTIVITIES TO STRUCTURE OTHERWISE IDLE TIME ARE ALL PROVIDED UNDER ONE ROOF THE BASE FOR SUCH A PROGRAM COULD BE THE EXPANDED HEAD START PROGRAM THAT EVERYONE SEEMS TO SUPPORT HEAD START PROFESSIONALS CALL THIS APPROACH TWOGENERATIONAL PROGRAMMING THOSE YOUNG PEOPLE WHO HAD A CHILD OUT OF WEDLOCK WITH NO MEANS TO SUPPORT IT AND LARGELY UNPREPARED TO CARE FOR IT HAVE DEMONSTRATED THAT ON THEIR OWN THEY DO NOT MAKE THE WISEST DECISIONS THEIR LIVES DESPERATELY NEED THE STRUCTURE THAT ONLY THE LARGER SOCIETY CAN PROVIDE PARTICIPATION MANDATES SUCH AS THOSE MR CLINTON HAS PROPOSED COULD END WELFARE AS WE KNOW IT FOR THE GOOD OF SOCIETY THE CHILDREN AND YES THE MOTHERS MR BESHAROV IS A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE AND A VISITING PROFESSOR AT THE UNIVERSITY OF MARYLAND SCHOOL OF PUBLIC AFFAIRS AMY FOWLER OF AEI HELPED PREPARE THIS ARTICLE 9301180079 930118 LEISURE & ARTS TELEVISION WHAT'S NEW ON THE NEWEST NETWORK BY ROBERT GOLDBERG TOMORROW NIGHT MARKS A COMING OF AGE FOR FOX TV FOR THE PAST FIVE YEARS FOX HAS BEEN A QUASINETWORK A WANNABE NETWORK OPERATING ON A PARTTIME BASIS FOX HAS TURNED OUT A MOTLEY ASSORTMENT OF LOWESTCOMMONDENOMINATOR SHOWS SMELLYARMPIT YUCKFESTS LIKE MARRIED WITH CHILDREN AND TEEN HEARTWRENCHERS LIKE BEVERLY HILLS 90210 AIMING SQUARELY AT TWO UNDERSERVED AUDIENCES YOUNG ADULTS AND MINORITIES FOX HAS TWEAKED A FEW NOSES AND FROM TIME TO TIME EVEN BROKEN OUT AND BUSTED A MOVE WITH IN LIVING COLOR THE SIMPSONS AND FLYING BLIND BUT TOMORROW NIGHT WHEN FOX ADDS TWO HOURS OF PROGRAMMING TO CREATE A TUESDAYEVENING LINEUP AND STARTS BROADCASTING SEVEN NIGHTS IT WILL BE OFFICIAL SO HERE'S A LOOK AT THE TWO SHOWS THAT ARE PUTTING FOX OVER THE TOP AS EXPECTED BOTH PLAY RIGHT TO FOX'S KEY DEMOGRAPHICS THE FIRST CLASS OF '96 TUESDAY 89 PM EST IS 18SOMETHING THE SECOND KEY WEST TUESDAY 910 PM EST IS 25SOMETHING YOUTH IS NOT ALL THEY SHARE BOTH ARE HOURLONG DRAMAS THAT MARK AN EVOLUTION IN SOPHISTICATION FOR FOX A SMALL EVOLUTIONLIKE CHOCOLATE MOUSSE IN THE FACE INSTEAD OF CREAM PIE BOTH ARE ENSEMBLE DRAMAS INTERWEAVING THE STORIES OF CHARACTERS BROUGHT TOGETHER IN ONE LOCALE AND FOR MY MONEY THE MOST INTRIGUING LINK OF ALL IS THAT THEY BOTH STAR ONE OF MICHELLE PFEIFFER'S FORMER LOVERS PETER HORTON THIRTYSOMETHING AS THE ENGLISH PROFESSOR AND DIRECTOR IN CLASS OF '96 AND FISHER STEVENS AS SEAMUS O'NEIL THE HERO OF KEY WEST WITHOUT FURTHER ADO THEN HERE'S RECOVERINGFROMMICHELLE NIGHT CLASS OF '96 IS THE STORY OF SEVEN FRESHMEN AT IVYCOVERED HAVENHURST COLLEGE THE BLUECOLLAR NEW JERSEY GUY JASON GEDRICK AND THE SENSITIVE UPPERCRUST GIRL LISA DEAN RYAN THE WASPY NE'ERDOWELL BRANDON DOUGLAS AND HIS BLACK ROOMMATE PERRY MOORE THE WOULDBE GOGETTER GALE HANSEN THE WOULDBE ACTRESS MEGAN WARD AND THE WOULDBE HEARTBREAKER KARI WUHRER CREATED BY FORMER COLUMBIA UNIVERSITY PROFESSOR JOHN ROMANO OUT OF SOME STRANGELY MISGUIDED DESIRE TO SEE COLLEGE LIFE ACCURATELY PORTRAYED ON TV CLASS OF '96 PROVES MR ROMANO AS GOOD AS HIS WORD THIS SHOW HAS LOTS OF COLLEGIATE TEXTURE AND MOST OF IT RINGS TRUE THERE'S THE ALLNIGHTERS CHUGGING COFFEE WHILE CRAMMING FOR TESTS THERE'S THE OTHER NIGHTS SPENT CHUGGING BEERS THERE'S STUDENTS YELLING TURN IT DOWN WILL YOU TURN THAT THING DOWN THERE'S A LOT OF MUSIC A TON OF STUDYING AND A FEW MANGLED ROMANCES I FELT LIKE I WAS RIGHT BACK AT COLLEGE CLASS OF '96 IS A SWEET SHOW AND THE CHARACTERS ARE APPEALINGLY YOUTHFUL AND BUOYANT AND FULL OF THE REQUISITE HOPES AND DREAMS IT'S PROBABLY THE MOST INTELLIGENT PROGRAM FOX HAS ON THE AIR RIGHT NOW AFTER ALL MOBY DICK IS MENTIONED MORE THAN ONCE AND THERE'S EVEN A SMALL PLOT POINT THAT TURNS ON CAPTAIN AHAB YOU JUST WISH THAT THERE'D BE AT LEAST ONE OR TWO PLOT SURPRISES NOT THE SAME OLD STORIES YOU'VE SEEN A MILLION TIMES BEFORE THE BLUECOLLAR BOY HAS TO FALL FOR THE UPPERCRUST GIRL THE SON OF THE WASPY INVESTMENT BANKER HAS TO BE IN CONFLICT WITH HIS DAD AND TURN TO DRINKING AND IN THE END EVERYTHING HAS TO TURN OUT FINE AND WE HAVE TO BE TREATED TO THE OBLIGATORY LETTER HOME IN VOICEOVER DEAR UNCLE JOE I CAN'T BELIEVE IT'S ONLY BEEN A WEEK A WHOLE WORLD HAS OPENED JOE JUST LIKE YOU SAID IT WOULD I THINK I HEAR DORM BELLS RINGING IN KEY WEST THE PREMISE IS SLIGHTLY MORE LUDICROUS A YOUNG NEW JERSEY FACTORY WORKER WINS THE LOTTERY QUITS HIS JOB AND DRIVES OFF TO THE END OF THE WORLD TO KEY WEST HIS GOAL TO BECOME A NEWSPAPER REPORTER LET ME REPEAT THAT HE WINS A TON OF MONEY AND DECIDES TO BE A REPORTER CLEARLY THERE IS A SADLY MISGUIDED SOUL AT WORK HERE OR MAYBE JUST SOMEONE WITH A BIZARRE IMAGINATION AS IT TURNS OUT IT'S A LITTLE OF BOTH WRITTEN AND CREATED BY DAVID BEAIRD KEY WEST IS ONE OF THE MOST WILDLY UNEVEN PROGRAMS I'VE SEEN IN A LONG TIME WHEN SEAMUS ARRIVES IN KEY WEST AND FINDS IT AN ISLAND CRAWLING WITH CRAZY PEOPLE YOU KNOW IT'S GOING TO BE ONE OF THOSE SHOWS IN WHICH EVERYONE IS A COLORFUL ECCENTRIC THE MYSTICAL HONEYTONGUED HOOKER JENNIFER TILLY THE BLIND NEWSPAPER EDITOR IVORY OCEAN THE ODDBALL RASTAFARIAN TC CARSON A POETIC HOMOSEXUAL NICOLAS SUROVY AND AN UPTIGHT ALCOHOLIC DENISE CROSBY FACE OFF AGAINST EACH OTHER IN THE MAYORAL RACE EVEN THE PET ALLIGATOR DRESSES UP FUNNY AND HAS EROTIC DREAMS BUT A FEW OF THESE CHARACTERS ARE REALLY ECCENTRIC AND THAT'S FUN TAKE SHERIFF CODY BRIAN THOMPSON A GRADUATE OF THE POLICY ACADEMY AND A BUDDHIST MONASTERY WHO'S THE TOWN PEACE OFFICER I'M A TRIPLE LEO BUT I'M NOT ATTACHED TO AUTHORITY I'M A PART OF THE FLOW THAT STARTED WITH THE HAMMURABI CODE WORKED ITS WAY DOWN THROUGH THE US CONSTITUTION IT ENDS WITH ENLIGHTENMENT OR THE ELECTRIC CHAIR YOUR CHOICE FROM TIME TO TIME YOU THINK THE ACTION AT THE END OF THE EARTH IS GOING TO VEER OFF INTO TRULY TWISTED HUNTER THOMPSON TERRITORY THE LAND OF THE INSPIRED INSANE WHEN SEAMUS DRIVES HIS CAR INTO THE OCEAN THEN SHOOTS IT RASTAMAN JOJO CALLS OUT THAT CAR STEAL YOUR WOMAN YOU COME HOME AND FIND THAT CAR IN BED WITH YOUR WOMAN MAYBE YOU KILLED THE WRONG CAR KEY WEST IS A WACKY CELESTIAL SEASONINGS POTPOURRI IT'S GOT CHARM BUT IT ALSO HAS THIS REALLY DUMB STREAK BREATHLESSLY RELATING SEAMUS'S FIXATION WITH ERNEST HEMINGWAY MEANDERING ALONG A MAUDLIN STORY LINE ABOUT A MEMORIAL FOR A DEAD CLOWN THE PACING ON THE SHOW CAN BE SLOW AS SLOW AS A CANOE RIDE THROUGH A MANGROVE SWAMP AS COMEDY IT'S NOT TOO FUNNY AS DRAMA NOT TOO DRAMATIC STILL THERE'S A LITTLE BIT OF POTENTIAL BURIED IN THIS SERIES ALTHOUGH THEY'LL HAVE TO TRAVEL BEYOND THE END OF THE EARTH TO FIND IT 9301180078 930118 GLOBAL VIEW WHY THE WORLD WORRIES ABOUT A DOLLAR COMEBACK BY GEORGE MELLOAN FRANKFURT GERMANY MONETARY POLICY MAKERS WHO GATHERED AT THE OLD OPERA HOUSE HERE LAST WEEK FOR A G7 COUNCIL MEETING WERE MOSTLY GUESSING THAT THE US DOLLAR WILL CONTINUE TO STRENGTHEN WHAT THEY WERE LESS CERTAIN OF WAS WHETHER THIS WILL BE GOOD OR BAD FOR THE WORLD ECONOMY WHAT CONCERNED THEM WAS HOW A STRONGER DOLLAR MIGHT AFFECT TRADE OR MORE PRECISELY US POLICIES TOWARD TRADE THERE IS NO RATIONAL REASON WHY IT SHOULD THE ANXIETY WAS OVER IRRATIONAL REASONS THE ACTUAL FUTURE OF THE DOLLAR WILL BE DECIDED BY THE COLLECTIVE TRADING WISDOM OF THE FOOT SOLDIERS OF THE VAST GLOBAL FOREIGN EXCHANGE MARKET BUT EVEN THEY IN THEIR FRANTIC SPLITSECOND WORLD ARE NOT IMMUNE TO THEORETICAL ARGUMENTS THERE IS SOME PERSUASIVENESS TO THE THEORY THAT IF THE US ECONOMY CONTINUES TO RECOVER AND THE GERMAN AND JAPANESE ECONOMIES CONTINUE TO DRAG DEMAND FOR DOLLARS WILL GROW STRONGER AND DEMAND FOR MARKS AND YEN WILL WEAKEN THE DOLLAR ALREADY HAS MADE A SUBSTANTIAL RECOVERY FROM ITS 140 MARK LEVEL OF LAST FALL FURTHER THE BIG SPREAD BETWEEN US AND GERMAN SHORTTERM INTEREST RATES MAY NARROW MORE MOVING HOT MONEY BACK TOWARD THE US BUT THE INTERESTING THING HERE WAS THE ANXIETY ABOUT US TRADE POLICY AND WHAT THAT NAILBITING SAID ABOUT HOW SOPHISTICATED MONEY SPECIALISTS VIEW THE WORLD THE SOURCE OF THEIR UNCERTAINTY IS NOT MONETARY BUT POLITICAL THEY WERE CONCERNED THAT A STRONGER DOLLAR MIGHT REDUCE US EXPORTS AND INCREASE IMPORTS THEREBY EXPANDING THE US TRADE DEFICIT THIS IN TURN MIGHT STRENGTHEN THE ARGUMENTS OF US POLICY MAKERS AND LEGISLATORS WHO WANT TO GIVE AMERICAN INDUSTRY AND AGRICULTURE GREATER PROTECTION AGAINST FOREIGN COMPETITION NO ONE CAME RIGHT OUT AND SAID IT BUT THE NEW US ADMINISTRATION AND THE NEW US CONGRESS ARE WELL SUPPLIED WITH PEOPLE WHO FAVOR MANAGED TRADE CODE WORDS FOR WHAT IS AT BEST A DISDAIN FOR MULTILATERAL TRADE ARRANGEMENTS AND AT WORST OLDFASHIONED PROTECTIONISM THE MEETING HERE WAS POPULATED BY CURRENT AND FORMER CENTRAL BANKERS AND FINANCE MINISTRY OFFICIALS PRIVATE BANKERS BUSINESSPEOPLE AND ECONOMISTS THEY KNOW BETTER THAN MOST THAT THEY ARE NOT REALLY THE MASTERS OF THE UNIVERSE OF POPULAR LEGEND THEY HAVE INFLUENCE BUT REAL POWER RESTS WITH THE POLITICIANS WHEN THE DISCUSSION FRINGED ON TRADE ISSUES SOMEONE COMMENTED THAT THE MARKED ABSENCE OF POLITICIANS FROM THE DEBATE WAS A SERIOUS DEFICIENCY THE G7 COUNCIL ITSELF HAS NO OFFICIAL STANDING IT IS SIMPLY A NONPROFIT PRIVATELY SUPPORTED COMMISSION SET UP TO DEBATE THE SAME ISSUES THAT COME BEFORE THE PERIODIC GROUP OF SEVEN MEETINGS OF CENTRAL BANKERS AND FINANCE MINISTERS REPRESENTING THE SEVEN MOST IMPORTANT INDUSTRIAL NATIONS UNLIKE THE G7 ITSELF HOWEVER THE G7 COUNCIL DRAWS PARTICIPANTS FROM SMALL AS WELL AS LARGE COUNTRIES CENTRAL BANKERS FROM PORTUGAL GREECE AUSTRIA AND FINLAND WERE PRESENT ALONG WITH THE LIKES OF WAYNE ANGELL OF THE NEW YORK FED AND HANS TIETMEYER OF THE GERMAN BUNDESBANK G7 COUNCIL SESSIONS REPRESENT A BROADER SET OF VIEWS THAN G7 MEETINGS THEMSELVES THE IDEA THAT A STRONG CURRENCY WORSENS THE TRADE BALANCE AND DAMAGES A NATIONAL ECONOMY IS OF COURSE A MYTH GERMAN BUNDESBANK PRESIDENT HELMUT SCHLESINGER AND FRENCH MINISTER OF ECONOMY AND FINANCE MICHEL SAPIN WERE AT SOME PAINS TO EXPLAIN DURING THEIR ADDRESSES THAT A STRONG MARK AND A STRONG FRANC HAD BEEN GOOD NOT BAD FOR THE ECONOMIES OF GERMANY AND FRANCE THEY WERE SUPPORTED BY WILLEM DUISENBERG PRESIDENT OF THE NETHERLANDS BANK AMONG OTHERS EMPIRICAL EVIDENCE MAINLY THE VIGOROUS ECONOMIC GROWTH OF JAPAN AND GERMANY FROM THE PLAZA ACCORD UNTIL THE EARLY 1990S BEARS THEM OUT DURING THE BUSH ADMINISTRATION A WEAK DOLLAR HAS GONE HAND IN HAND WITH THE POOREST US ECONOMIC GROWTH RECORD SINCE THE 1930S BUT IT IS WIDELY FELT THAT THE HARDENING OF THE US DOLLAR BROUGHT ABOUT BY RONALD REAGAN AND PAUL VOLCKER DURING THE FIRST REAGAN ADMINISTRATION GAVE RISE TO PROTECTIONIST FORCES IN THE US IT WAS FOR THIS REASON THAT THE G7 NATIONS AGREED IN THE FAMOUS PLAZA ACCORD OF 1985 THAT THE US SHOULD DELIBERATELY WEAKEN THE DOLLAR RELATIVE TO OTHER CURRENCIES WHICH IS WHAT IT DID PARTICULARLY AFTER US TRADING PARTNERS BEGAN TO SEE THAT THIS DID THEM NO REAL HARM AND QUITE POSSIBLY DID THEM GOOD THERE HAS BEEN A GREAT DEAL OF SUPPORT FOR A SOFT DOLLAR IN G7 DELIBERATIONS SO ESSENTIALLY WE HAVE COME TO A WORLD RULED IN LARGE PART BY AN ECONOMIC MYTH YET IT SEEMS TO BE TRUE THAT MYTHS CAN BE IMPORTANT IN POLITICS POLITICIANS MAKE USE OF THEM TO DO WHAT THEY MAINLY WANT TO DO WHICH IS TO PASS OUT FAVORS TO THEIR CONSTITUENCIES ONE OF THE MOST GENEROUS FAVORS IN THE VIEW OF SOME POLITICIANS IS TO PROTECT A FAVORED CONSTITUENCY AGAINST COMPETITION EITHER FOREIGN OR DOMESTIC ONE OF THE GLOOMIEST SPEAKERS TO THE GROUP HERE WAS HARALD B MALMGREN A FORMER US DEPUTY TRADE REPRESENTATIVE WITH SOME 30 YEARS' EXPERIENCE IN TRADE NEGOTIATIONS REFERRING TO A SERIES OF G7 SUMMITS AT WHICH HEADS OF STATE HAVE DEMANDED A COMPLETION OF THE URUGUAY ROUND OF TRADE LIBERALIZATION TALKS HE SAID THAT NATIONAL LEADERS HAVE BECOME SO INEFFECTUAL THAT THEY CAN'T EVEN PERSUADE THEIR OWN NEGOTIATORS TO DO AS THEY ARE TOLD PERHAPS THE MOST HISTORICALLY SIGNIFICANT CHARACTERISTIC OF THE G7 AT THIS TIME OF TURBULENCE AND PROLONGED ECONOMIC WEAKNESS IS THE APPARENT INABILITY OF ITS NATIONAL LEADERS TO LEAD MR MALMGREN SAID OF COURSE IT MAY BE THAT THE US DOLLAR WILL NOT STRENGTHEN SIGNIFICANTLY WHILE THERE NOW IS A GREAT DEAL OF OPTIMISM ABOUT THE US RECOVERY THERE ALSO ARE STILL SOME SERIOUS DOUBTS ABOUT THE STRENGTH OF HOUSEHOLD BALANCE SHEETS AND THE WILLINGNESS OF CONSUMERS TO SPEND MOREOVER THERE IS THE QUESTION OF WHETHER THE FED WILL HAVE ANY CHOICE BUT TO SATISFY DOLLAR DEMAND HOWEVER STRONG IT MIGHT BE AND THUS CONTAIN GROWTH IN THE DOLLAR'S VALUE GIVEN THE CONCERNS OF THE NEW ADMINISTRATION ABOUT RECEIVING POLITICAL CREDIT FOR A RECOVERY AND ABOUT THE COST OF FINANCING THE NATIONAL DEBT THERE COULD BE HEAVY PRESSURE ON THE FED TO CONTINUE HOLDING DOWN SHORTTERM INTEREST RATES TO SOMEWHERE NEAR ROCK BOTTOM THAT COULD CERTAINLY LIMIT ANY TENDENCY OF THE DOLLAR TO MAKE SUBSTANTIAL GAINS AGAINST THE MARK AND YEN ONE CAN ONLY SPECULATE AT THIS POINT ON THE FUTURE OF THE DOLLAR AND OF US TRADE POLICY POSSIBLY BILL CLINTON WILL FIND A SUCCESSFUL COURSE THROUGH THE ECONOMIC MINEFIELDS HE FACES BUT IT IS A BIT DISQUIETING TO GO TO A MEETING OF THE WORLD'S LEADING BANKERS AND FIND THEM TRYING TO GUESS WHETHER THE LEADERS OF THE WORLD'S LARGEST ECONOMY WILL ACT RATIONALLY OR IRRATIONALLY 9301180077 930118 COMMUNITY PSYCHIATRIC IS FOURTH FIRM TO AGREE TO CHANGES AT TEXAS FACILITIES BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LAGUNA HILLS CALIF COMMUNITY PSYCHIATRIC CENTERS BECOMING THE FOURTH OPERATOR OF PSYCHIATRICCARE FACILITIES TO REACH A SETTLEMENT WITH THE STATE OF TEXAS SAID IT AGREED TO ACCEPT CHANGES ORDERED BY THE STATE UNDER THE VOLUNTARY CONSENT AGREEMENT MADE FOLLOWING A STATE INVESTIGATION INTO PRACTICES OF PRIVATE FORPROFIT PSYCHIATRIC HOSPITALS THE COMPANY DIDN'T ADMIT ANY WRONGDOING THE AGREEMENT CALLS FOR COMMUNITY PSYCHIATRIC TO ADHERE TO A NEW SET OF STRICT GUIDELINES REGARDING MARKETING AND ADMISSION PRACTICES FOR ITS FIVE HOSPITALS IN TEXAS THE COMPANY ALSO WILL HAVE 165000 OF INSURANCE CLAIMS IT MADE AGAINST A STATE CRIMEVICTIMS COMPENSATION FUND PLACED UNDER REVIEW FOR POSSIBLE WITHDRAWAL THE FUND COVERS CERTAIN EXPENSES OF VICTIMS OF CRIME INCLUDING MEDICAL AND PSYCHIATRIC CARE THAT AREN'T COVERED BY OTHER SOURCES THE AGREEMENT FOLLOWS SIMILAR SETTLEMENTS THAT TEXAS REACHED WITH THREE OTHER PSYCHIATRICCARE OPERATORS NATIONAL MEDICAL ENTERPRISES INC LOS ANGELES HOSPITAL CORP OF AMERICA NASHVILLE TENN AND CHARTER MEDICAL CORP MACON GA COMMUNITY PSYCHIATRIC WAS FACING A POSSIBLE LAWSUIT BY THE STATE IF IT HADN'T REACHED THE CONSENT AGREEMENT BY LAST FRIDAY A CRUCIAL PROVISION OF NATIONAL MEDICAL'S 9 MILLION SETTLEMENT WITH THE STATE LAST SUMMER WAS THAT THREE OTHER MULTIHOSPITAL PSYCHIATRIC FIRMS SETTLE WITH THE STATE OTHERWISE THE NATIONAL MEDICAL AGREEMENT WOULD HAVE EXPIRED COMMUNITY PSYCHIATRIC WAS THE LAST HOLDOUT UNDER THE AGREEMENT COMMUNITY PSYCHIATRIC AGREED TO REFRAIN FROM THE FOLLOWING PLACING ITS COUNSELORS IN PUBLIC SCHOOLS FOR THE PURPOSE OF MAKING REFERRALS ADMITTING CHILDREN UNDER 10 YEARS OLD WITHOUT A SECOND OPINION UNLESS THE DIAGNOSIS WAS MADE BY A CHILD PSYCHOLOGIST ADMITTING ANY PATIENT WITHOUT A PRIOR EVALUATION BY A PSYCHIATRIST ESTABLISHING OCCUPANCY GOALS AND PROVIDING INCENTIVES TO EMPLOYEES TO MEET THOSE GOALS ADMITTING PATIENTS WITHOUT FULL DISCLOSURE OF COSTS OF SERVICES ADMITTING PATIENTS WITHOUT SHARING AND EXPLAINING THE SOCALLED PATIENT'S BILL OF RIGHTS WHICH SETS FORTH THE MEANS BY WHICH A PATIENT'S FREEDOM MAY OR MAY NOT BE RESTRICTED DURING TREATMENT THE REFORMS SET NEW INDUSTRY STANDARDS THAT SHOULD DEMONSTRATE TO THE PEOPLE OF TEXAS THAT THEY ARE PROTECTED BY STRICT REGULATIONS AND THE HIGHEST ETHICAL PRINCIPLES SAID RICHARD L CONTE COMMUNITY PSYCHIATRIC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE FEEL STRONGLY THAT THESE REFORMS SHOULD BE APPLIED NOT JUST TO THE FOUR MAJOR COMPANIES BUT TO EVERY PSYCHIATRIC PROVIDER IN TEXAS BOTH FREESTANDING HOSPITALS AND PSYCHIATRIC UNITS LOCATED IN GENERAL HOSPITALS SO THAT ALL PATIENTS RECEIVING PSYCHIATRIC CARE CAN BENEFIT FROM THEM MR CONTE NOTED THAT A NUMBER OF THE CHANGES AREN'T APPLICABLE TO THE COMPANY FOR EXAMPLE RESTRICTIONS ON ADVERTISING AND PAYING COMMISSIONS OR BONUSES FOR ADMISSIONS WILL NOT AFFECT US SINCE THE COMPANY DOES NOT ENGAGE IN THESE PRACTICES HE SAID THE COMPANY WENT TO CONSIDERABLE LENGTHS TO DISTINGUISH ITS AGREEMENT FROM THE SETTLEMENTS REACHED EARLIER WITH THE THREE OTHER CHAINS SAYING IT WAS THE ONLY COMPANY NOT SERVED WITH A LAWSUIT BY THE STATE'S ATTORNEY GENERAL AND THE ONLY COMPANY NOT REQUIRED TO COMPENSATE THE STATE FOR THE COSTS OF ITS INVESTIGATION AND THE ONLY COMPANY WHICH WILL BE ALLOWED TO HAVE CLAIMS TO THE TEXAS CRIME VICTIMS COMPENSATION FUND ARBITRATED BY A THIRD PARTY INSTEAD OF WAIVED IN THE PRIOR SETTLEMENTS NATIONAL MEDICAL AGREED TO PAY 86 MILLION WHICH INCLUDED 11 MILLION IN STATE INVESTIGATIVE COSTS WITHDRAWAL OF AN ESTIMATED 34 MILLION TO 49 MILLION IN CLAIMS TO THE CRIME VICTIMS' FUND AND A MANDATED PROVISION OF ABOUT 26 MILLION OF CHARITY CARE CHARTER MEDICAL'S SETTLEMENT TOTALED ABOUT 32 MILLION INCLUDING 550000 IN INVESTIGATIVE COSTS AND WAIVING OF 11 MILLION IN CLAIMS TO THE CRIME VICTIMS' FUND HOSPITAL CORP'S SETTLEMENT WAS 475000 UNLIKE NATIONAL MEDICAL AND CHARTER NEITHER COMMUNITY PSYCHIATRIC NOR HOSPITAL CORP ARE BEING REQUIRED TO COMMIT TO A CERTAIN LEVEL OF STATESUPERVISED CHARITY CARE OR TO FUND AND PARTICIPATE IN A COMPLIANCEREVIEW PROGRAM SUPERVISED BY THE STATE COMMUNITY PSYCHIATRIC SAID WE ARE SATISFIED THAT THE TERMS OF OUR AGREEMENT CLEARLY DISTINGUISH OUR COMPANY FROM MAJOR INDUSTRY COMPETITORS MR CONTE SAID THE OUTCOME OF THIS INVESTIGATION VINDICATES CPC AS AN ETHICAL COMPANY PROVIDING APPROPRIATE REASONABLY PRICED QUALITY CARE 9301180076 930118 FED WARNS AGAINST FASB'S PROPOSED ACCOUNTING RULE BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD STAFF VOICED SERIOUS CONCERN THAT THE FINANCIAL ACCOUNTING STANDARDS BOARD'S PROPOSED ACCOUNTING CHANGE FOR INVESTMENTS IN SECURITIES WOULD HAVE UNDESIRABLE SIDEEFFECTS THE FED STAFF SAID FOR INSTANCE THAT IT IS VERY CONCERNED THAT THE PROPOSED STATEMENT WOULD ERECT BARRIERS TO THE CONTROL OF INTERESTRATE RISK BY FINANCIAL INSTITUTIONS THE FASB PROPOSAL WOULD EFFECTIVELY REQUIRE MARKETVALUE ACCOUNTING FOR THE SECURITIES PORTFOLIOS OF MANY BANKING ORGANIZATIONS THE FED STAFF SAID IT WARNED THAT THE PLAN COULD PRODUCE VOLATILITY IN REPORTED BANKCAPITAL LEVELS AND GIVE AN INACCURATE PICTURE OF BANKS' FINANCIAL CONDITIONS IT CONCLUDED THAT ANY FURTHER MOVES TOWARD MARKET VALUE ACCOUNTING SHOULD BE DELAYED UNTIL CHANGES ALREADY IN TRAIN CAN BE DIGESTED FED CHAIRMAN ALAN GREENSPAN HAS MADE IT CLEAR THAT THE CENTRAL BANK IS NOT ENAMORED OF MARKETVALUE ACCOUNTING FOR BANK SECURITIES PORTFOLIOS THE FED STAFF DETAILED ITS CONCERNS ABOUT THE PENDING PROPOSAL IN A COMMENT LETTER LAST MONTH TO FASB THE STANDARDSETTING BODY FOR THE ACCOUNTING INDUSTRY A COPY OF THE SUBMISSION WAS JUST RELEASED BY THE FED BANKING AND BOND INDUSTRY GROUPS COMPLAIN THAT THE FASB PROPOSAL WILL FORCE BANKS TO ESCHEW LONGTERM SECURITIES AND INVEST IN SHORTTERM ONES AT PRESENT BANKS DIVIDE THEIR SECURITIES PORTFOLIOS INTO INVESTMENT SECURITIES AND TRADING SECURITIES WITH INVESTMENT SECURITIES VALUED AT HISTORICAL COST AND TRADING SECURITIES VALUED AT THEIR CURRENT MARKET VALUE SECURITIES AND EXCHANGE COMMISSION CHAIRMAN RICHARD BREEDEN HAS BEEN PUSHING FOR BANKS' SECURITIES HOLDINGS TO BE VALUED AT MARKET VALUE ARGUING IT WOULD MORE ACCURATELY REFLECT THE INSTITUTIONS' FINANCIAL CONDITION THE SEC ALSO HAS BEEN REVIEWING PORTFOLIOTURNOVER RATES OF BANKS SEEKING TO REGISTER SECURITIES OFFERINGS AND IT HAS FORCED SOME TO REVALUE THEIR HOLDINGS TO MARKET VALUE THE FASB PUT ITS PROPOSAL OUT FOR COMMENT LAST FALL THE PLAN COULD TAKE EFFECT LATER THIS YEAR 9301180075 930118 ATEK METALS CENTER GETS PRIVATIZATION BID FROM 3 TOP OFFICERS CINCINNATI ATEK METALS CENTER INC'S TOP THREE EXECUTIVES WHO OWN 55 OF THE COMPANY'S STOCK PROPOSED TAKING THE COMPANY PRIVATE BY BUYING THE REMAINING 2062113 SHARES FOR 3 EACH ATEK'S SEVENMEMBER BOARD WHICH INCLUDES THE THREE MEMBERS OF THE BUYOUT GROUP HASN'T VOTED ON THE PROPOSAL YET BUT A COMPANY NEWS RELEASE WHOSE CONTACT IS A MEMBER OF THE BUYOUT GROUP STATES THAT IF THE PROPOSAL'S CONDITIONS ARE MET THE TRANSACTIONS SHOULD CLOSE IN THE LATTER PART OF JULY 1993 THE BUYOUT GROUP COMPRISES GEORGE J WILE ATEK'S CHAIRMAN BARRY BUCHER CHIEF EXECUTIVE AND PRESIDENT AND DERWOOD STEPHENS EXECUTIVE VICE PRESIDENT AFTER THE MERGER MR WILE AND HIS FAMILY WHO OWN 840825 SHARES WOULD SWAP THEM AND 2000 SHARES OF ATEK'S CONVERTIBLE STOCK FOR ALL THE SHARES OF ATEK'S POLYMET UNIT MR BUCHER WOULDN'T COMMENT ON WHY THE BUYOUT GROUP WHICH FOUNDED THE COMPANY IN 1971 AND TOOK IT PUBLIC IN 1989 WANTS TO TAKE IT PRIVATE AGAIN ATEK SUPPLIES THE AIRCRAFT ENGINE SEGMENT OF THE AEROSPACE INDUSTRY AND THE PETROCHEMICAL SEGMENT OF THE CHEMICAL INDUSTRY 9301180074 930118 PEPPERAND SALT AND REAPPRAISAL ALWAYS AGONIZING AND HONEST TRUTHS SO SURPRISING MUST WE ALWAYS GO BACK TO SQUARE ONE WHAT'S THE MATTER WITH SQUARE TWO OR THREE ARE ROCKET SCIENTISTS SMARTEST OF ALL AND WHY DO WE CALL A FALL FREE TO THE WONDERFUL ONEHORSE CLICHE IN THE COMPLIMENT OR KISS CALL YOU MA'AM NOT MISS 9301180073 930118 GORE SAYS AN ENERGY TAX IS UNDER CONSIDERATION WASHINGTON VICE PRESIDENTELECT ALBERT GORE SAID THE NEW ADMINISTRATION ISN'T CONTEMPLATING AN INCREASE IN THE FEDERAL GASOLINE TAX BUT NOTED THAT A NEW BROADBASED ENERGY TAX IS UNDER CONSIDERATION APPEARING ON THE NBC NEWS PROGRAM MEET THE PRESS MR GORE SAID THAT WHILE NO DECISIONS HAVE BEEN MADE I'D BE LESS THAN CANDID IF I SAID THAT THERE WAS NO DISCUSSION OF A BROADBASED ENERGY TAX TO HELP REDUCE THE BUDGET DEFICIT AT THE SAME TIME MR GORE SAID THAT AN INCREASE IN THE FEDERAL EXCISE TAX ON GASOLINE CURRENTLY 14 CENTS A GALLON HAS NOT EVEN BEEN DISCUSSED AS AN OPTION DURING THE CAMPAIGN PRESIDENTELECT CLINTON OPPOSED RAISING THE GASOLINE TAX BUT SOME OF HIS ADVISERS HAVE ENDORSED THE IDEA IN RECENT WEEKS AT HIS SENATE CONFIRMATION HEARING LAST WEEK DEPUTY TREASURY SECRETARYDESIGNATE ROGER ALTMAN ASSERTED THAT ONE FORM OR ANOTHER OF A NEW TAX ON CONSUMPTION IS IN ORDER ONE POSSIBILITY THAT HE MENTIONED WAS A NEW ENERGY TAX 9301180072 930118 INS FINES BAIRD 2900 FOR HIRING ILLEGAL ALIENS WASHINGTON ATTORNEY GENERALDESIGNATE ZOE BAIRD WAS FINED 2900 BY THE IMMIGRATION AND NATURALIZATION SERVICE FOR HIRING ILLEGAL IMMIGRANTS AS DOMESTICS IN HER NEW HAVEN CONN HOME A STATEMENT ISSUED BY PRESIDENTELECT CLINTON'S TRANSITION TEAM SAID MS BAIRD HAS TAKEN RESPONSIBILITY FOR THIS MATTER AND ACKNOWLEDGES THAT TO HAVE HIRED ANY EMPLOYEE BEFORE RECEIVING THE NECESSARY AUTHORIZATION WAS A MISTAKE SHE DEEPLY REGRETS THE MISTAKES SHE HAS MADE IN THIS MATTER ON JAN 5 AFTER SHE WAS NOMINATED MS BAIRD AND HER HUSBAND PAID 12000 IN BACK SOCIAL SECURITY TAXES ON WAGES FOR THE COUPLE HIRING ILLEGAL IMMIGRANTS IS ITSELF ILLEGAL AS ATTORNEY GENERAL MS BAIRD WOULD BE IN CHARGE OF THE INS THE DISCLOSURES ABOUT THE ILLEGAL IMMIGRANTS PROMPTED A COALITION OF CONSUMER AND PUBLIC INTEREST GROUPS TO CALL FOR A ONEWEEK DELAY IN MS BAIRD'S CONFIRMATION HEARING WHICH IS SCHEDULED FOR TOMORROW TO ALLOW MORE TIME FOR THE PUBLIC AND THE SENATE JUDICIARY COMMITTEE TO REVIEW HER RECORD HOWEVER SEN JOSEPH BIDEN THE COMMITTEE CHAIRMAN INDICATED HIS CONTINUED SUPPORT OF MS BAIRD THIS MATTER MUST BE PLACED IN THE CONTEXT OF MS BAIRD'S OTHERWISE OUTSTANDING RECORD SAID THE DELAWARE DEMOCRAT WHEN VIEWED IN THIS CONTEXT I EXPECT HER TO BE CONFIRMED 9301180071 930118 ECONOMY TRACKING THE ECONOMY BY LUCINDA HARPER IN OCTOBER AND NOVEMBER HOUSING STARTS WERE PUSHED UP MAINLY BY STRENGTH IN THE SOUTH AS SOUTHERN FLORIDA AND LOUISIANA BEGAN REBUILDING AFTER HURRICANE ANDREW BUT THAT GROWTH BY NOW HAS SUBSIDED SAYS DONALD MAUDE AN ECONOMIST AT SCOTIAMCLEOD SO HE ESTIMATES THAT HOUSING STARTS GREW A MODEST 04 IN DECEMBER AFTER A 15 INCREASE THE MONTH BEFORE AS IN PREVIOUS MONTHS THE STRENGTH IN HOUSING WILL COME FROM THE SINGLEFAMILY SECTOR MR MAUDE SAYS COMMERCIAL UNITS ARE STILL A GLUT ON THE MARKET AND WILL BE A PROBLEM FOR YEARS TO COME FOR THE YEAR THE HOUSING MARKET WAS A MIXED BAG IT WAS VERY STRONG IN THE FIRST QUARTER TURNED WEAK IN THE SPRING AND SUMMER AND HAS BEEN ESSENTIALLY FLAT SINCE A 121 JUMP IN AUGUST MR MAUDE SAYS FOR THE YEAR HOUSING STARTS WILL BE UP ABOUT 56 FOR THE SECOND YEAR OF A RECOVERY THAT IS EXCEEDINGLY WEAK AND DISAPPOINTING ESPECIALLY WITH LOW INTEREST RATES HE SAYS THERE HAVE BEEN SIGNS THAT THINGS MAY IMPROVE SOMEWHAT IN THE COMING MONTHS REALTORS HAVE BEEN REPORTING INCREASED TRAFFIC AND INTEREST IN NEW HOMES BUT SO FAR THAT UPTICK IN INTEREST HAS NOT SHOWN UP IN THE NUMBERS MR MAUDE SAYS THERE WON'T BE ANY MAJOR IMPROVEMENT IN THE HOUSING SECTOR UNTIL THERE IS EMPLOYMENT AND INCOME GROWTH AND IT IS VIEWED AS SUSTAINABLE 9301180070 930118 BUSINESS BRIEF SUN TELEVISION & APPLIANCES INC FIRM'S HOLDERS WITHDRAW SHARES FROM STOCK OFFERING SUN TELEVISION & APPLIANCES INC SAID ITS SELLING SHAREHOLDERS HAVE WITHDRAWN THEIR SHARES FROM THE COMPANY'S PREVIOUSLY ANNOUNCED COMMON STOCK OFFERING BECAUSE THE SHARES' TRADING PRICE IS TOO LOW THE SPECIALTY RETAILER IN COLUMBUS OHIO SAID IT STILL PLANS TO OFFER ONE MILLION NEWLY ISSUED SHARES PROCEEDS WOULD BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES INCLUDING EXPANSION THE ORIGINAL OFFER INCLUDED 600000 SHARES FROM SELLING SHAREHOLDERS MONTGOMERY SECURITIES AND MCDONALD & CO SECURITIES INC WILL MANAGE THE OFFER THEY MAY ISSUE AN ADDITIONAL 150000 SHARES IF THE OFFER IS OVERSUBSCRIBED SUN TV HAD 71 MILLION SHARES OUTSTANDING ON AUG 31 9301180069 930118 EL PASO ELECTRIC CO TO RECEIVE RATE PATH FROM UTILITY PANEL EL PASO TEXAS THE PUBLIC UTILITY COMMISSION OF TEXAS AGREED TO PROVIDE A RATE PATH TO EL PASO ELECTRIC CO A MOVE THAT MAKES IT EASIER FOR THE COMPANY TO ATTACH A VALUE FOR ITS STANDALONE BANKRUPTCY REORGANIZATION PLAN BUT LETS OUTSIDE BIDDERS DO THE SAME ESTABLISHING A RATE PATH IS AN IMPORTANT STEP IN THE BANKRUPTCY CASE BECAUSE WITHOUT KNOWING HOW MUCH IT CAN CHARGE ITS RATEPAYERS NEITHER EL PASO NOR ITS POTENTIAL BUYERS CAN ESTIMATE WHAT THE COMPANY IS WORTH AND COMPLETE A REORGANIZATION PLAN THE COMPANY PROPOSED EMERGING FROM CHAPTER 11 ON ITS OWN BUT SINCE THEN TWO OTHER UTILITIES CENTRAL & SOUTH WEST CORP AND SOUTHWESTERN PUBLIC SERVICE CO HAVE SAID THEY ARE INTERESTED IN ACQUIRING EL PASO OTHER BIDDERS ALSO ARE SAID TO BE INTERESTED IN A STIPULATION MADE DURING THE COURSE OF A BANKRUPTCYCOURT HEARING ON EL PASO'S CASE LAST WEEK THE COMPANY AGREED THAT AFTER IT HAS RECEIVED ITS RATE PATH POTENTIAL BUYERS CAN HOLD SIMILAR TALKS WITH REGULATORS IN A RELATED MOVE THE BANKRUPTCY COURT APPOINTED MICHAEL PAUL KIRSCHNER AN ATTORNEY WITH THE LAW FIRM HASTIE & KIRSCHNER IN OKLAHOMA CITY TO ACT AS MEDIATOR IN THE CASE TO FACILITATE THE RESOLUTION OF THE RATE PATH DISCUSSIONS AND OBSERVE THIRDPARTY DISCUSSIONS WITH REGULATORS THE COURT ALSO APPROVED A REQUEST BY THE COMMITTEE REPRESENTING EL PASO'S EQUITY HOLDERS TO APPOINT SALOMON BROTHERS AS AN INVESTMENT ADVISER TO THE EQUITY HOLDERS 9301180068 930118 INTERNATIONAL FLIGHT ATTENDANTS' STRIKE DISRUPTS CATHAY OPERATION A WALL STREET JOURNAL NEWS ROUNDUP HONG KONG A FLIGHT ATTENDANTS' STRIKE AT CATHAY PACIFIC AIRWAYS IS INCONVENIENCING TRAVELERS GIVING THE CARRIER'S VAUNTED REPUTATION A BLACK EYE AND PRESAGING STRONG RESISTANCE TO THE COMPANY'S COSTCONTAINMENT DRIVE THE STRIKE WHICH BEGAN ON WEDNESDAY AND HAS CAUSED DELAYS CANCELLATIONS AND REROUTINGS OF FLIGHTS INVOLVES AN ESTIMATED 2000 OF THE AIRLINE'S 4000 CABINCREW WORKERS MEDIATION TALKS ORGANIZED BY HONG KONG'S LABOR DEPARTMENT BEGAN SATURDAY BETWEEN CATHAY AND THE FLIGHT ATTENDANTS UNION BUT NEITHER SIDE WOULD COMMENT ON THEM NEGOTIATIONS CONTINUED ON SUNDAY THE FAU WHICH HAS 3200 MEMBERS WORKING AT CATHAY BEGAN THE PARTIAL STRIKE TO PROTEST THE FIRING LAST MONTH OF THREE FLIGHT ATTENDANTS WHO REFUSED TO PERFORM DUTIES BELOW THEIR GRADE THE FAU ASKED CATHAY TO REINSTATE THE THREE HOSTESSES AND TO INCREASE CABINCREW STAFFING LEVELS SOON AFTER THE UNION CALLED THE STRIKE THE FAU'S SPOKESWOMAN WASN'T AVAILABLE FOR COMMENT ON SUNDAY CATHAY SAID IT WAS TOO EARLY TO ESTIMATE THE COST OF THE LABOR DISPUTE BUT CROSBY SECURITIES HONG KONG LTD PUT THE PRICE TAG AT 15 MILLION HONG KONG DOLLARS US19 MILLION A DAY THE AIRLINE HAS BEEN TRANSFERRING ITS PASSENGERS TO OTHER AIRLINES CHARTERING AIRCRAFT FROM OTHER CARRIERS AND OPERATING SOME FLIGHTS ITSELF USING BOTH FAU MEMBERS AND NONUNION CABIN CREW 9301180067 930118 INS ARRESTS DEPORTS OVER 200 EMPLOYEES OF CALIFORNIA FIRM VANS INC IS SUSPECTED TARGET OF COUNTERFEITERS GIVING FALSE PAPERS TO JOB SEEKERS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MORE THAN A THIRD OF VANS INC WORKERS TAKING PART IN A SHIFT CHANGE WERE ARRESTED BY THE FEDERAL IMMIGRATION AND NATURALIZATION SERVICE FORCING THE CALIFORNIA SHOEMAKER TO SIZE UP ITS LABOR SITUATION ANEW AN INS INVESTIGATOR SAID THE SERVICE SUSPECTS THAT THE COMPANY HAS BEEN TARGETED BY COUNTERFEITERS WHO PROVIDE PHONY DOCUMENTS TO JOB APPLICANTS THE INS SAID THAT OF APPROXIMATELY 600 WORKERS CHANGING SHIFTS AT 8 AM THURSDAY AT THE COMPANY'S ORANGE CALIF FACTORY 233 EMPLOYEES WERE UNABLE TO PRODUCE DOCUMENTS SHOWING THEY WERE LEGAL IMMIGRANTS OF THOSE DETAINED 219 APPEARED TO BE MEXICAN NATIONALS AND AGREED TO VOLUNTARY DEPORTATION THEY WERE RETURNED TO MEXICO WHILE SOME OF THE REMAINDER LATER WERE ALLOWED TO STAY IN THE US FOR VARIOUS REASONS SAID INS ASSISTANT DIRECTOR FOR INVESTIGATIONS JOHN BRECHTEL AMONG THE REASONS HE SAID WERE THAT SOME WORKERS HAVE STRONG FAMILY TIES IN THE AREA RICHARD LEEUWENBURG PRESIDENT AND CHIEF OPERATING OFFICER OF THE 2400WORKER COMPANY SAID THAT WITHIN THE LAST SIX MONTHS VANS HAD HIRED A SPECIALIST TO AUDIT ITS PROCEDURES FOR CHECKING DOCUMENTS AND FOUND THEY WERE SATISFACTORY HE SAID SOME DOCUMENTS CARRIED BY JOB APPLICANTS CAN EASILY BE RECOGNIZED AS FAKES BECAUSE THEY ARE DRIPPING WITH WHITEOUT OR OBVIOUSLY DON'T BELONG TO THE PERSON WHO PRODUCES THEM HOWEVER IN MANY OTHER CASES THERE'S NO WAY YOU CAN GUARD AGAINST IT MR LEEUWENBURG SAID HE ADDED THAT THERE IS CURRENTLY NO WAY FOR THE COMPANY TO CROSSCHECK WORKERS' DOCUMENTS WITH FEDERAL RECORDS IN A STATEMENT VANS MAINTAINED THAT PRODUCTION WON'T BE HURT BY THE ARRESTS BUT DIDN'T ELABORATE THE COMPANY'S SHARES CLOSED AT 1175 DOWN 125 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MR BRECHTEL SAID THE INS IS HOPING THAT THE COMPANY HAS IMPLEMENTED ADEQUATE SCREENING PROCEDURES NEITHER HE NOR MR LEEUWENBURG SAID WHETHER THEY PLAN TO REVIEW RECORDS OF THE 1800 WORKERS NOT INVOLVED IN THE SHIFT CHANGE THE AGENCY NOTED IN A STATEMENT ON THE RAID THAT COMPANIES THAT KNOWINGLY HIRE ILLEGAL ALIENS ARE SUBJECT TO FINES RANGING FROM 250 TO 2000 FOR EACH VIOLATION AND THAT EMPLOYER SANCTIONS CONTINUE TO BE A HIGH PRIORITY MR BRECHTEL SAID THE AGENCY IS PURSUING SUCH ARRESTS AT LOCATIONS WHERE IT BELIEVES LARGE NUMBERS OF VIOLATIONS ARE OCCURRING BUT HE ADDED THAT HE BELIEVES THAT VANS HAS BEEN TARGETED BY COUNTERFEITERS WHO SUPPLY FALSE IMMIGRATION DOCUMENTS TO PROSPECTIVE WORKERS THE INS IS TESTING A NEW SYSTEM TO AID IN SUCH CHECKS AND IT COULD BE MADE AVAILABLE SOON TO EMPLOYERS MR BRECHTEL SAID HE ALSO SAID THAT A CONTINUING INS RECALL OF ALL GREEN CARDS PROVIDED TO LEGAL IMMIGRANTS BEFORE 1978 IS EXPECTED TO ALLEVIATE SOME OF THE PROBLEM THOSE CARDS ARE BEING REPLACED WITH NEWER COUNTERFEITRESISTANT DOCUMENTATION 9301180066 930118 BUSINESS BRIEF MOUNTAINEER BANKSHARES OF WVA FOURTHQUARTER EARNINGS ROSE 52 FROM YEAR BEFORE MOUNTAINEER BANKSHARES OF WVA INC MARTINSBURG WVA BENEFITING FROM LOWER FUNDING COSTS FOR LOANS AND A HEALTHIER LOAN PORTFOLIO REPORTED NET INCOME OF 18 MILLION OR 71 CENTS A SHARE FOR THE FOURTH QUARTER UP 52 FROM A YEAR EARLIER IN THE YEAREARLIER PERIOD THE BANK HAD NET OF 12 MILLION OR 47 CENTS A SHARE SEPARATELY THE COMPANY SAID IT EXPECTS AN EXTRAORDINARY GAIN OF ABOUT 400000 IN THE FIRST QUARTER FOR THE CUMULATIVE EFFECT OF ADOPTING OF FINANCIAL ACCOUNTING STANDARD NO 109 A NEW WAY TO ACCOUNT FOR DEFERRED TAXES MOUNTAINEER BANKSHARES IS A HOLDING COMPANY OF SIX WEST VIRGINIA BANKS 9301180065 930118 BUSINESS BRIEF ESYSTEMS INC FAA ORDER FOR 636 MILLION IN LEARJET SYSTEMS RECEIVED ESYSTEMS INC SAID IT RECEIVED A 636 MILLION CONTRACT AS PART OF A FEDERAL AVIATION ADMINISTRATION FLIGHT INSPECTION PROGRAM THE DALLAS DEFENSE ELECTRONICS COMPANY SAID THE CONTRACT FOR TWO LEARJET 60 INSTRUMENTATION SYSTEMS INCLUDES OPTIONS VALUED AT MORE THAN 400 MILLION THROUGH FISCAL 1993 IN ADDITION TO THE TWO SYSTEMS PART OF AN FAA PROGRAM TO CHECK THE CALIBRATION OF AIRPORT LANDING EQUIPMENT ESYSTEMS' CONTRACT ALSO CALLS FOR TRAINING FOR PILOTS AND MAINTENANCE WORKERS INITIAL SPARE PARTS SUPPLIES AND OPERATOR AND MAINTENANCE MANUALS ESYSTEMS IS REQUIRED TO DELIVER THE FIRST SYSTEM WITHIN 27 MONTHS AND THE SECOND WITHIN 33 MONTHS 9301180064 930118 BUSINESS BRIEFS BARNES GROUP INC COMPLETED THE SALE OF ITS PIONEER DIVISION TO CLOSELY HELD UIS INC OF NEW YORK TERMS WEREN'T DISCLOSED ELECTRONIC DATA SYSTEMS CORP HAS RECEIVED A 44 MILLION CONTRACT FROM NORTHROP CORP TO DEVELOP SOFTWARE FOR AN ADVANCED VERSION OF THE HORNET STRIKE FIGHTER THE CVS DIVISION OF MELVILLE CORP AGREED TO ACQUIRE 10 DRUGSTORE LOCATIONS IN SOUTHEASTERN PENNSYLVANIA FROM FAY'S INC TERMS WERE NOT DISCLOSED UNITS OF USX CORP AND CYPRUS MINERALS CO HAVE SIGNED A LETTER OF INTENT TO MINE JOINTLY THE CUMBERLAND MINE IN SOUTHWESTERN PENNSYLVANIA THERMO INSTRUMENT SYSTEMS INC AGREED TO PURCHASE A UNIT OF SPECTRAPHYSICS AB OF SWEDEN FOR ABOUT 69 MILLION ADVEST GROUP INC BOUGHT BACK JUST OVER ONE MILLION SHARES UNDER A TWO MILLION SHARE BUYBACK AUTHORIZED IN AUGUST 1990 9301180063 930118 FINANCING BUSINESS ARKANSAS BEST CORP ARKANSAS BEST CORP FORT SMITH ARK STANDARD & POOR'S CORP LOWERED ITS RATING ON 112 MILLION OF THE UNIONIZED LONG HAUL TRUCKING COMPANY'S SUBORDINATED DEBT TO TRIPLEBMINUS FROM TRIPLEB THE RATINGS AGENCY ALSO ASSIGNED A TRIPLEBMINUS RATING TO THE COMPANY'S 65 MILLION CONVERTIBLE EXCHANGEABLE PREFERRED SHARES THE DOWNGRADE REFLECTS THE IMPACT OF THE REPURCHASE OF 44 MILLION SHARES OF COMMON STOCK FROM KELSO PARTNERS THE GROUP WHICH LED A 1988 LEVERAGED BUYOUT OF THE COMPANY S&P SAID AS FOR THE PREFERRED SHARES THEY HELP REBUILD THE COMPANY'S EQUITY BASE BUT HIGHER FIXED CHARGE PAYMENTS AND THE REDUCED PROPORTION OF COMMON EQUITY RESULTED IN THE DOWNGRADE S&P SAID PROCEEDS FROM THE PREFERRED SHARES WILL REPAY THE 50 MILLION TERM LOAN THAT FINANCED THE SHARE REPURCHASE AND WILL BE USED FOR GENERAL CORPORATE PURPOSES ARKANSAS BEST OWNS ABF FREIGHT SYSTEM INC THE FIFTHLARGEST LESSTHANTRUCKLOAD CARRIER IN THE US AND ALSO OWNS A 464 INTEREST IN TREADCO INC THE NATION'S LARGEST INDEPENDENT TRUCK TIRE RETREADER THE COMPANY CONTINUED TO GENERATE STRONG OPERATING RESULTS AND TONNAGE GAINS IN 1992 THOUGH PRICING REMAINS SOFT 9301180062 930118 INTERNATIONAL CANADA TO INCREASE ITS INVESTMENT IN HIBERNIA PROJECT BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL THE CANADIAN GOVERNMENT STEPPING IN TO SAVE THE 41 BILLION HIBERNIA OFFSHORE OIL PROJECT FROM COLLAPSE AGREED TO INVEST A FURTHER 290 MILLION CANADIAN DOLLARS US2268 MILLION IN THE VENTURE THE GOVERNMENT ALSO WILL PROVIDE AS MUCH AS C132 MILLION IN INTERESTFREE LOANS TO THE THREE COMPANIES THAT WILL PICK UP THE REST OF THE 25 STAKE IN HIBERNIA THAT WAS ABANDONED BY GULF CANADA RESOURCES IN FEBRUARY 1992 THE GOVERNMENT ALREADY HAS PROVIDED C1 BILLION IN GRANTS AND C17 BILLION IN LOAN GUARANTEES TO HIBERNIA THE LATEST INVESTMENT ANNOUNCEMENT HAD BEEN EXPECTED AFTER A SEARCH LASTING NEARLY A YEAR ONE NEW PARTNER HAS EMERGED FOR THE HIBERNIA CONSORTIUM MURPHY OIL CORP OF EL DORADO ARK MURPHY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE THE REMAINING 65 INTEREST IN HIBERNIA ADDING IT EXPECTS TO COMPLETE THE ACQUISITION BY MARCH UNTIL THEN THE CANADIAN GOVERNMENT WILL FUND MURPHY'S SHARE OF THE PROJECT'S COSTS TO KEEP THE PROJECT ALIVE THE CANADIAN DIVISIONS OF MOBIL CORP AND CHEVRON CORP WILL EACH TAKE ON AN ADDITIONAL 5 OF HIBERNIA BRINGING THEIR HOLDINGS IN THE PROJECT TO 33125 AND 26875 RESPECTIVELY CALGARYBASED PETROCANADA WILL RETAIN ITS 25 INTEREST THE GOVERNMENT OF CANADA AND ITS PRIVATE SECTOR PARTNERS HAVE SUCCEEDED IN WORKING TOGETHER TO STABILIZE THE PROJECT SAID CANADA'S ENERGY MINISTER WILLIAM MCKNIGHT HE DESCRIBED THE PACT AS A RENEWED VOTE OF CONFIDENCE IN THE FUTURE OF THE OIL AND GAS POTENTIAL OF THE NORTH ATLANTIC FRONTIER GULF PULLED OUT OF THE HIBERNIA PROJECT AFTER FAILING IN A YEARLONG QUEST TO FIND A BUYER FOR ITS STAKE THE WITHDRAWAL THREW THE PROJECT INTO QUESTION AS THE REMAINING THREE PARTNERS SLOWED SPENDING WHILE THEY SOUGHT NEW INVESTORS WITH GULF'S COMMITMENT TO FUNDING HIBERNIA'S COSTS SET TO EXPIRE THIS WEEK INDUSTRY ANALYSTS AND SOURCES CLOSE TO THE PROJECT AGREE THAT HAD THE GOVERNMENT NOT STEPPED IN THE MASSIVE VENTURE LIKELY WOULD HAVE BEEN MOTHBALLED CRITICS HAVE CHARGED THAT HIBERNIA IS NO MORE THAN A COSTLY MAKEWORK SCHEME FOR RESIDENTS OF THE PROVINCE OF NEWFOUNDLAND BUT GOVERNMENT OFFICIALS NOTE THAT THE DECISION TO TAKE ON THE 85 STAKE SAVES THE GOVERNMENT THE EVEN HEAVIER COSTS OF CALLING OFF THE PROJECT THEY PUT THE DIRECT COSTS AT C200 MILLION OR MORE INDIRECT COSTS THEY ADDED SUCH AS UNEMPLOYMENT INSURANCE PAYMENTS TO THE 63000 NEWFOUNDLANDERS WHO ARE EXPECTED TO BE EMPLOYED AS A RESULT OF THE HIBERNIA VENTURE WOULD HAVE SKYROCKETED MR MCKNIGHT SAID HE IS CONFIDENT THAT AS THE 1997 PRODUCTION TARGET DATE APPROACHES THE GOVERNMENT WILL FIND A BUYER FOR THE HIBERNIA STAKE NOTING THAT AS THE PROJECT BECOMES MORE CERTAIN IT BECOMES MORE ATTRACTIVE TO OTHER INVESTORS ALL THE COSTS OF THIS PROJECT ARE RECOVERABLE WITH A WORLD OIL PRICE OF 12 TO 15 A BARREL SAID JAMES BAROFFIO PRESIDENT OF CHEVRON CANADA RESOURCES CHARLES MURPHY CHAIRMAN OF MURPHY OIL SAID MURPHY OIL IS LIKELY TO SEEK A LARGER INTEREST IN HIBERNIA AND WILL BE LOOKING FOR OPPORTUNITIES TO INVEST IN OTHER OFFSHORE OIL PROJECTS IN THE REGION MURPHY'S MANAGEMENT HAS FEW QUALMS ABOUT THIS PROJECT HE SAID HIBERNIA IS EXPECTED TO BEGIN PRODUCTION OF ABOUT 110000 BARRELS OF OIL DAILY IN 1997 9301180061 930118 MARKETING & MEDIA ADVERTISING COMPETING BRANDS WON'T HAVE FIELD TO THEMSELVES IN SUPER BOWL BY KEVIN GOLDMAN WHEN SUPER BOWL XXVII KICKS OFF JAN 31 IN PASADENA CALIF WITH THE BUFFALO BILLS FACING THE DALLAS COWBOYS SOME OF THE TOUGHEST TACKLES WILL TAKE PLACE DURING COMMERCIAL BREAKS INSTEAD OF HAVING THE PLAYING FIELD EXCLUSIVELY AS IN SOME PAST SUPER BOWLS COMPETING BRANDS WILL BE BUTTING HEADS THOUGH 30 SECONDS OF COMMERCIAL TIME IS SELLING FOR NEARLY 1 MILLION GENERAL ELECTRIC'S NBC UNIT DIDN'T OFFER SOME ADVERTISERS EXCLUSIVE AD TIME FOR THEIR PRODUCT CATEGORY BY CONTRAST LAST YEAR WHEN CBS BROADCAST THE WORLD FOOTBALL CHAMPIONSHIP IT NEEDED TO MAKE EXCLUSIVE DEALS WITHIN CERTAIN BRAND CATEGORIES THE OLYMPICS SIPHONED OFF PRECIOUS AD DOLLARS AND CREATED A GLUT OF SPORTS PROGRAMMING THIS YEAR WITH NO OLYMPICS DEMAND FOR THE SUPER BOWL IS UP AS A RESULT FOR THE FIRST TIME IN FOUR YEARS BREWER ANHEUSERBUSCH WON'T BE THE ONLY SUDS MAKER ADVERTISING IN FOOTBALL'S WORLD CHAMPIONSHIP ITS BUD BOWL V WHICH SOME AD WAGS SAY IS PERHAPS IV BOWLS TOO MANY WILL BE JOINED BY ADS FROM MILLER BREWING PEPSICO WHICH IS INTRODUCING ITS NEW CRYSTAL PEPSI WILL HAVE TO SHARE THE LIMELIGHT WITH RIVAL SEVENUP REEBOK INTERNATIONAL AND NIKE ARE GOING TO TAP DANCE AROUND EACH OTHER'S SPOTS AND SUBARU OF AMERICA AND FORD MOTOR WILL HAVE TO SWERVE TO AVOID A COMMERCIAL COLLISION ALL OF THE ADVERTISERS ARE HOPING TO HYPE BRAND AWARENESS WITH THE LARGEST TELEVISION AUDIENCE OF THE YEAR LAST YEAR'S SUPER BOWL BETWEEN THE WASHINGTON REDSKINS AND BUFFALO BILLS WAS WATCHED BY 403 OF US HOMES WITH TV SETS WHICH TRANSLATES TO MORE THAN 37 MILLION HOUSEHOLDS ACCORDING TO AC NIELSEN PEPSI AND ANHEUSERBUSCH ARE THE BIG SPENDERS WITH FOUR MINUTES IN ADS OR CLOSE TO 7 MILLION IN EXPENDITURES FOR EACH COMPANY BUT THAT STRATEGY IS UNDERCUT EXPERTS SAY WHEN A COMPETITOR BUYS TIME IN THE SUPER BOWL IN PEPSI'S CASE THE UNWELCOME INTRUDER IS SEVENUP AND ITS RED DOT ANIMATED CHARACTER WE CALL HIM SPOT SAYS A SEVENUP SPOKESMAN SEVENUP CAN DIMINISH PEPSI'S SPOTS BY DIVERTING ATTENTION TO ANOTHER COMMERCIAL IN THE SAME CATEGORY SAYS STEVE AUERBACH EXECUTIVE VICE PRESIDENT OF NATIONAL BROADCAST AT DEWITT MEDIA A MEDIA BUYING COMPANY IF IT WERE SPENDING SO HEAVILY AS THE ONLY SOFT DRINK ADVERTISER MR AUERBACH SAYS PEPSI COULD CREATE ITS OWN CLUTTER AND A CLEAR MESSAGE WILL BE BOMBARDED INTO THE VIEWER'S MIND BUT WITH SEVENUP COMING INTO THE PICTURE IN THE FOURTH QUARTER WITH ITS OWN ADS PEPSI COULD BE UNDERCUT IF THE GAME IS STILL A CLOSE CONTEST PEPSI SAYS IT ISN'T CONCERNED AT ALL THE NEW ADS FOR CRYSTAL PEPSI FEATURE THE PULSATING SOUNDS OF THE ROCK GROUP VAN HALEN AND ITS NO 1 HIT RIGHT NOW THE SPOT FROM OMNICOM GROUP'S BBDO INCLUDES SHOTS OF AMONG OTHER THINGS A RHINOCEROS WITH WRITTEN TEXT RIGHT NOW ONLY WILDLIFE NEEDS PRESERVATIVES THE MESSAGE IS CLEAR IS BETTER SEVENUP BOUNDED INTO THE SUPER BOWL LAST YEAR DURING THE FOURTH QUARTER AS IT WILL DO AGAIN THIS YEAR THE SEVENUP SPOKESMAN SAYS THE COMPANY NEGOTIATED A FOURTHQUARTER EXCLUSIVE WITH NBC A RISKY STRATEGY AT BEST BUT ONE THAT THE UNIT OF DR PEPPER/SEVENUP SAYS IT IS MORE THAN COMFORTABLE WITH IT WORKED FOR US LAST YEAR SAYS THE SPOKESMAN THIS YEAR MARKS MILLER BREWING'S RETURN TO THE SUPER BOWL AFTER SEVEN YEARS LAST YEAR THE PHILIP MORRIS UNIT WAS FORCED TO BUY TIME ON THE FOX NETWORK'S HALFTIME SHOW THIS YEAR MILLER ELBOWED ITS WAY INTO THE SUPER BOWL AND BOUGHT TWO 30SECOND SPOTS LONG BEFORE ANHEUSERBUSCH EVEN PHONED THE NBC SALES DEPARTMENT MILLER WANTED TO BE ON DURING THE SUPER BOWL BECAUSE SAYS A SPOKESMAN IT IS THE BEST WAY TO BUILD BRAND AWARENESS VIEWERS WILL SEE TWO NEW MILLER SPOTS ONE FOR MILLER LITE AND ANOTHER FOR A YETTOBEDETERMINED BRAND MILLER MAY AIR ONE OF TWO NEW ADS BY ITS AGENCY LEO BURNETT ONE FEATURES A MINDREADING CLASS MANY MEMBERS OF WHICH HAVE THE SAME THOUGHT AT THE SAME TIME BOLT FROM THE BORING LECTURE AND DESCEND UPON A PUB ANOTHER TAKES PLACE IN THE LAND OF THE MIDNIGHT SUN WITH A BARTENDER LAMENTING THESE NIGHTS ARE GOING TO KILL ME BUDWEISER'S ENTRY WILL BE THE MUCHMALIGNED BUD BOWL WITH BUD LIGHT PLAYING FOOTBALL AGAINST BUD DRY THE GIMMICK THIS YEAR CELEBRITY COACHES CORBIN BERNSEN FROM THE NBC SERIES LA LAW AND JOE NAMATH FORMER FOOTBALL STAR QUARTERBACK IN THE ATHLETICSHOE CATEGORY NIKE IS PROMISING A LOONEY CARTOON TO RIVAL LAST YEAR'S CLEVER SHOWDOWN FEATURING BUGS BUNNY AND BASKETBALL STAR MICHAEL JORDAN OF THE CHICAGO BULLS THIS YEAR MR JORDAN WILL FACE OFF AGAINST MARVIN THE MARTIAN AN OCCASIONAL CHARACTER IN WARNER BROS ANIMATED SHORTS IN A 90SECOND AD REEBOK SAYS IT WILL UNVEIL ADS FEATURING ITS ANSWER TO MR JORDAN ROOKIE BASKETBALL STAR SHAQUILLE O'NEAL OF THE ORLANDO MAGIC AND HIS SOCALLED SHAQ ATTACK SPOKESMEN FOR BOTH COMPANIES PROFESS NOT TO CARE THAT THE RIVALS BOTH WILL BE SPONSORING THE SUPER BOWL WE DON'T WATCH THEM WE WATCH US SNIFFS A NIKE SPOKESMAN THIS IS AN INVESTMENT DECISION BASED ON WHETHER DOLLARS OUT ARE WORTH THE DOLLARS IN BUT THE COMPANY SAYS IT CAN'T QUANTIFY THE SALES OF NIKE PRODUCTS RESULTING FROM SUPER BOWL ADS WE RELY ON THESE ADS TO TALK ABOUT AND CREATE EXCITEMENT ABOUT THE BRAND SAYS THE SPOKESMAN WE USE PRINT ADS TO ACTUALLY SELL SPECIFIC NIKE PRODUCTS TWO AUTOMOBILE MANUFACTURERS PURCHASED TIME TO LAUNCH NEW PRODUCTS FORD WILL USE A 30SECOND SPOT TO INTRODUCE IN A NONONSENSE MANNER ITS LINCOLNMERCURY MARK VIII LUXURY COUPE FUJI HEAVY INDUSTRIES' SUBARU UNIT IS TRYING A MORE RADICAL APPROACH WITH SIX 15SECOND COMMERCIALS TO INTRODUCE ITS NEW SUBCOMPACT THE IMPREZA EACH SPOT WILL FEATURE A FEMALE ANNOUNCER SPEAKING ABOUT A DIFFERENT PART OF THE CAR SUCH AS THE ENGINE THE ENTIRE AUTOMOBILE WON'T BE UNVEILED UNTIL THE FINAL SPOT SCHEDULED FOR EARLY IN THE THIRD QUARTER ADVERTISING IN THE SUPER BOWL OF COURSE IS LESS ABOUT AD STRATEGY THAN ABOUT HYPE AND GETTING ATTENTION FOR SPECIFIC COMMERCIALS THAT MAY NEVER BE SEEN AGAIN THE JURY IS OUT ON WHAT EFFECT THE SPECIAL COMMERCIALS HAVE ON THE CONSUMER IN TERMS OF WHETHER THE SPOTS MOVE MERCHANDISE SAYS BILL WEILBACHER PRESIDENT OF BISMARK CORP A MARKETING AND ADVERTISING CONSULTING FIRM BUT EXCLUSIVITY REMAINS IMPORTANT I DON'T THINK HAVING TWO COMPETING BRANDS ADVERTISING ON THE SUPER BOWL ENHANCES THE COMMERCIAL SPECIAL MEANS SPECIAL AND THAT MEANS BEING THE ONLY ONE PORSCHE CARS OF NORTH AMERICA PULLED ITS SMALL BUT PRESTIGIOUS AD ACCOUNT FROM WPP GROUP'S FALLON MCELLIGOTT CITING CHANGES IN MANAGEMENT AND PHILOSOPHY A SEARCH FOR A NEW SHOP BEGINS IMMEDIATELY THE COMPANY SAID PAT FALLON CHAIRMAN OF THE DISMISSED MINNEAPOLIS SHOP SAID HIS AGENCY WASN'T INVITED TO PARTICIPATE IN THE PITCH WE DID BRILLIANT WORK AND WE HAVE NOTHING TO BE ASHAMED OF THIS NEW GROUP JUST WANTS THEIR OWN AGENCY HE SAID REFERRING TO THE PROMOTION LAST MARCH OF FREDERICK SCHWAB TO PRESIDENT AND CHIEF EXECUTIVE FROM THE POST OF CHIEF FINANCIAL OFFICER AND OTHER EXECUTIVE CHANGES THAT FOLLOWED IT'S A DIFFERENCE IN MARKETING APPROACH SAID A PORSCHE SPOKESMAN PORSCHE SOLD ABOUT 4100 CARS IN THE US LAST YEAR A 6 DECLINE FROM 1991 PORSCHE'S PEAK SALES YEAR CAME IN 1986 WHEN THE COMPANY SOLD ABOUT 30000 AUTOS PORSCHE SPENT AN ESTIMATED 7 MILLION ON ADVERTISING IN THE FIRST NINE MONTHS OF 1992 ACCORDING TO THE ADTRACKING FIRM LEADING NATIONAL ADVERTISERS THE MOVE MARKS THE FIFTH TIME IN THE LAST YEAR OR MORE THAT AN IMPORTED LUXURY CAR HAS MADE AN UNCEREMONIOUS EXIT FROM ITS AGENCY AS MERCEDESBENZ JAGUAR BMW AND NISSAN'S INFINITI ALL HAVE FALLON HAD WORKED FOR THE COMPANY A RENO NEV UNIT OF PORSCHE AG OF GERMANY SINCE 1988 PREVIOUSLY CHIAT/DAY HAD THE ACCOUNT MR FALLON SAID THE CREAMCOLORED 1963 PORSCHE 356B IN FALLON'S LOBBY WOULD REMAIN IT BELONGS TO THE AGENCY'S ACCOUNT SERVICES DIRECTOR FRED SENN IT REMAINS A SYMBOL OF EXCELLENCE MR FALLON SAID THE FACT THAT THEY FIRED US DOESN'T CHANGE THAT WHO'S NEWS LEO BURNETT CHICAGO PROMOTED JAMES M JENNESS EXECUTIVE VICE PRESIDENT AND CLIENT SERVICE DIRECTOR ON THE AGENCY'S BIG KELLOGG ACCOUNT TO THE POST OF VICE CHAIRMAN MR JENNESS AGE 46 WILL OVERSEE THE AGENCY'S MULTINATIONAL CLIENTS INCLUDING PROCTER & GAMBLE PHILIP MORRIS AND MCDONALD'S HENRY J FEELEY JR VICE CHAIRMAN AND DIRECTOR OF CLIENT SERVICES IS RETIRING IN MARCH THE AGENCY SAID MR FEELEY 52 COULDN'T BE REACHED SEARS ACCOUNT SEARS CATALOG OUTLET STORES A UNIT OF SEARS ROEBUCK CHICAGO TAPPED CRAMERKRASSELT CHICAGO TO HANDLE ITS ESTIMATED 5 MILLION AD ACCOUNT PREVIOUSLY HANDLED INHOUSE MORE PEROT ROSS PEROT AND HIS UNITED WE STAND AMERICA GROUP TAPPED DIRECTMARKETING AGENCY INTER/MEDIA ADVERTISING TO BUY TELEVISION AND PRINT MEDIA FOR THE GROUP'S MEMBERSHIP CAMPAIGN THE AGENCY SAID 60SECOND TEST SPOTS SOLICITING MEMBERS TO JOIN BY PAYING 15 APIECE WILL START AIRING ON NATIONAL CABLE NETWORKS NEXT WEEK INTER/MEDIA IS A UNIT OF INTER/MEDIA ENCINO CALIF 9301180060 930118 BUSINESS BRIEF DU PONT CO SOUTH KOREA UNIT CONSIDERS DELAY IN PLANT CONSTRUCTION DU PONT KOREA LTD A UNIT OF DU PONT CO OF THE US IS CONSIDERING DELAYING THE CONSTRUCTION OF A TITANIUM DIOXIDE PLANT IN SOUTH KOREA ORIGINALLY SLATED FOR THE LATTER HALF OF THIS YEAR A DU PONT SPOKESMAN SAID IN SEOUL WE ARE REVIEWING THE PLANNED START OF CONSTRUCTING THE PETROCHEMICAL PLANT AS WE SEE SIGNS OF A SUPPLY GLUT IN THE DOMESTIC AND GLOBAL MARKET AS WELL THE DU PONT OFFICIAL SAID THE COMPANY HAD PLANNED TO SPEND 200 BILLION WON 2525 MILLION FOR A PLANT WITH AN ANNUAL PRODUCTION CAPACITY OF 60000 TONS WHICH WAS SLATED FOR COMPLETION IN 1995 THE PETROCHEMICALS TO BE MANUFACTURED ARE USED IN A WIDE RANGE OF PRODUCTS SUCH AS PAINTS FOODS AND PLASTICS CURRENTLY KOREA TITANIUM CO IS THE ONLY PRODUCER OF PETROCHEMICALS IN THE DOMESTIC MARKET 9301180059 930118 LAW LEGAL BEAT COLORADO JUDGE BLOCKS STATE BAN ON PROTECTION OF RIGHTS FOR GAYS BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER HOMOSEXUALS HAVE A FUNDAMENTAL RIGHT NOT TO HAVE THE STATE ENDORSE AND GIVE EFFECT TO PRIVATE BIASES A COLORADO STATE JUDGE RULED IN BLOCKING A STATEWIDE BAN ON GAYRIGHTS PROTECTIONS FROM TAKING EFFECT THE LAW KNOWN AS AMENDMENT 2 WAS PASSED BY VOTERS IN NOVEMBER AND WAS TO BECOME PART OF THE STATE'S BILL OF RIGHTS FRIDAY THE AMENDMENT PROHIBITS THE STATE OR ANY MUNICIPALITY FROM PASSING OR ENFORCING EXISTING LAWS THAT PROTECT HOMOSEXUALS FROM DISCRIMINATION GOV ROY ROMER WHO OPPOSED THE AMENDMENT IN NOVEMBER BUT IS REQUIRED BY STATE LAW TO DEFEND IT SAID THE STATE WILL APPEAL JUDGE JEFFREY BAYLESS'S ORDER BLOCKING THE LAW TO THE COLORADO SUPREME COURT IN HIS RULING JUDGE BAYLESS SAID THE PLAINTIFFS IN THE CASE EIGHT INDIVIDUALS AND THE CITIES OF ASPEN BOULDER AND DENVER HAVE A REASONABLE PROBABILITY OF PREVAILING IN A TRIAL ON THE MERITS OF THE CASE IN THEIR LAWSUIT THE PLAINTIFFS ALLEGED THAT THE AMENDMENT ABRIDGED THE CONSTITUTIONAL RIGHTS OF HOMOSEXUALS THE JUDGE RULED THAT THE LAW CAN'T TAKE EFFECT UNTIL AFTER A TRIAL IS HELD ON THE PLAINTIFFS' CLAIMS THAT THE LAW MUST BE THROWN OUT THE JUDGE DIDN'T DIVULGE HIS RULING FRIDAY UNTIL THE END OF A 50MINUTE EXPLORATION OF THE APPLICABLE LAW AND STANDARDS BUT SEVERAL TIMES EARLY IN HIS ORATION THE JUDGE REFERRED TO THE EVOLVING STANDARD OF DECENCY AND THE EVOLUTION OF LAW AND LEGAL STANDARDS THE LAW IS NOT STATIC IT IS GROWING AND CHANGING IN HIS RULING THE JUDGE DECLARED THAT FREEDOM FROM STATESANCTIONED BIAS IS A FUNDAMENTAL RIGHT PROTECTED UNDER THE CONSTITUTION THE PLAINTIFFS HAD STRUGGLED WITH IDENTIFYING THAT FUNDAMENTAL RIGHT IN THEIR ARGUMENTS SAID JUDGE BAYLESS WHO ARTICULATED IT FOR THEM IN HIS RULING FUNDAMENTAL RIGHTS UPHELD BY COURTS IN THE PAST INCLUDE THE RIGHT TO SUCH THINGS AS FREE SPEECH RELIGION AND PRIVACY AS WELL AS THE RIGHT TO VOTE MARRY AND TRAVEL IT IS A PROFOUND DECISION SAID TIM TYMKOVICH COLORADO ASSISTANT ATTORNEY GENERAL MR TYMKOVICH SAID THE JUDGE REFORMULATED A LEGAL STANDARD SET IN A 1967 US SUPREME COURT CASE BROUGHT BY A MAN WHO DIDN'T WANT HIS CHILD RAISED BY HIS EXWIFE'S BLACK HUSBAND THE SUPREME COURT RULED IN THAT CASE THAT TAKING THE CHILD AWAY FROM THE MIXEDMARRIAGE COUPLE WAS UNCONSTITUTIONAL BECAUSE IT TOOK PRIVATE DISCRIMINATION AND GAVE STATE SUPPORT TO IT JUDGE BAYLESS SAID BEFORE ISSUING HIS RULING GOV ROMER SAID THAT ON APPEAL THE STATE WILL QUESTION WHETHER A FUNDAMENTAL RIGHT WAS AT STAKE AS THE JUDGE RULED TO BLOCK THE LAW IT WAS ESSENTIAL FOR THE JUDGE TO FIND THAT A FUNDAMENTAL RIGHT WAS INVOLVED WITHOUT SUCH A FINDING THE AMENDMENT WOULD HAVE BEEN PRESUMED TO BE VALID AND COULD HAVE PASSED CONSTITUTIONAL MUSTER IF THE STATE COULD SHOW ANY RATIONAL RELATIONSHIP BETWEEN THE LAW AND THE STATE'S INTEREST BUT BY RULING THAT A FUNDAMENTAL RIGHT WAS AT JEOPARDY THE JUDGE IS REQUIRING THAT THE LAW BE SUBJECT TO STRICT SCRUTINY A HIGHER LEVEL OF CONSTITUTIONAL SCRUTINY THAT INCREASES THE CHANCES OF SUCCESSFULLY CHALLENGING THE LAW NOW THE STATE MUST PROVE A COMPELLING INTEREST IN ITS DISCRIMINATION NOT JUST A RATIONAL BASIS FOR IT THE JUDGE ALSO COULD HAVE RULED THAT HOMOSEXUALS ARE A SUSPECT CLASS SIMILAR TO BLACKS IF HE HAD FOUND THAT THEY HAVE BEEN BROADLY DISCRIMINATED AGAINST HISTORICALLY IN MATTERS INVOLVING BASIC OR FUNDAMENTAL RIGHTS BUT OTHER COURTS HAVE HELD THAT HOMOSEXUALS ARE NOT A SUSPECT CLASS AND THE PLAINTIFFS HAD AGREED IN THE CASE NOT TO PURSUE THAT LEGAL ARGUMENT THE DECISION COMING AS IT DOES OUT OF A LOWER STATE COURT WON'T HAVE MUCH POWER AS A LEGAL PRECEDENT SAID GENE NICHOL DEAN OF THE UNIVERSITY OF COLORADO SCHOOL OF LAW BUT CLEARLY THE LEGAL QUESTION OF SEXUAL ORIENTATION IS IN A STATE OF FLUX IN THE LAWS OF OUR LAND WHICHEVER WAY THIS EVENTUALLY IS DECIDED IT WILL HAVE A SIGNIFICANT ROLE TO PLAY IN THE ULTIMATE DETERMINATION OF LEGAL STANDARDS AFFECTING GAYS HE SAID THE CASE AS IT GOES TO TRIAL WILL BE EXTREMELY IMPORTANT TO GAY RIGHTS SAID PAUL WOTMAN A SAN FRANCISCO ATTORNEY WHO REPRESENTS HOMOSEXUAL CLIENTS IN DISCRIMINATION CASES IF YOU CAN VOTE TO SAY GAYS AND LESBIANS CAN'T HAVE CIVILRIGHTS PROTECTIONS WHY NOT VOTE THAT WAY FOR BLACKS OR JEWS OR HISPANICS OR WOMEN OR ANYBODY ELSE HE ASKED AMENDMENT 2 HE SAID JEOPARDIZES ALL CIVILRIGHTS LAWS A FEDERAL JUDGE HAS TAKEN THE UNUSUAL STEP OF REJECTING CLAIMS MADE IN A LIBEL LAWSUIT THAT ISN'T EVEN BEFORE HIS COURT THE CASE INVOLVES CLAIMS BY A UNIVERSITY OF CHICAGO LAW SCHOOL PROFESSOR WHO SPECIALIZES IN TESTIFYING AS AN EXPERT WITNESS FOR CORPORATE DEFENDANTS IN SHAREHOLDER SUITS LATE LAST YEAR THE PROFESSOR AND HIS CONSULTING FIRM LEXECON INC SUED THREE PLAINTIFFS LAW FIRMS IN FEDERAL COURT IN CHICAGO CLAIMING THAT THEY HAD LIBELED HIM IN A PREVIOUS CASE BEFORE A FEDERAL JUDGE IN ARIZONA LEXECON EVENTUALLY WAS DROPPED AS A DEFENDANT IN THE ARIZONA SUIT WHICH STEMMED FROM THE COLLAPSE OF CHARLES KEATING'S LINCOLN SAVINGS & LOAN ASSOCIATION THE PROFESSOR DANIEL R FISCHEL CLAIMS THAT THE PLAINTIFFS LAW FIRMS SUED HIM SOLELY TO SULLY HIS REPUTATION AND THAT THE CASE WAS GROUNDLESS THE THREE PLAINTIFFS LAW FIRMS ARE MILBERG WEISS BERSHAD SPECTHRIE & LERACH OF NEW YORK GREENFIELD & CHIMICLES HAVERFORD PA AND COTCHETT ILLSTON & PITRE BURLINGAME CALIF BUT JUDGE RICHARD M BILBY WHO PRESIDED OVER THE CASE BROUGHT BY THE LAW FIRMS IN TUCSON RULED THAT A PORTION OF PROF FISCHEL'S CHICAGO LAWSUIT DOES NOT MEET WITH REALITY AND IS FACTUALLY INCORRECT THE JUDGE ISSUED A FOURPAGE ORDER DISPUTING PROF FISCHEL'S CLAIMS THAT HE WAS SUED MALICIOUSLY OR WITHOUT PROBABLE CAUSE THE SUIT IN ARIZONA RESULTED IN SETTLEMENTS OF MILLIONS OF DOLLARS WITH SEVERAL LARGE ACCOUNTING FIRMS AND LAW FIRMS ALTHOUGH LEXECON WAS DISMISSED FROM THE CASE THE FIRM AGREED TO PAY ABOUT 700000 JUDGE BILBY SAID LEXECON'S SUIT IN CHICAGO MISREPRESENTED THAT SETTLEMENT LAST WEEK THE PLAINTIFFS LAW FIRMS PRESENTED JUDGE BILBY'S ORDER TO US JUDGE JAMES ZAGEL WHO IS OVERSEEING LEXECON'S SUIT IN CHICAGO JERROLD SOLOVY CHAIRMAN OF CHICAGO LAW FIRM JENNER & BLOCK WHO IS REPRESENTING MILBERG WEISS SAID THE PLAINTIFFS FIRMS WILL ARGUE THAT JUDGE BILBY'S ORDER UNDERMINES MOST OF THE LEXECON SUIT ALAN N SALPETER A LAWYER AT MAYER BROWN & PLATT IN CHICAGO REPRESENTING MR FISCHEL CALLED JUDGE BILBY'S ACTION BIZARRE HE PLANS TO APPEAL THE ORDER WHO'S NEWS CONSTANTINE SIDAMONERISTOFF WILL JOIN THE NEW YORK LAW FIRM PATTERSON BELKNAP WEBB & TYLER AS OF COUNSEL A NONPARTNER POSITION MR SIDAMONERISTOFF THE ENVIRONMENTAL PROTECTION AGENCY'S REGIONAL ADMINISTRATOR FOR THE NEW YORK AREA SINCE 1989 WILL PRACTICE IN THE FIRM'S 60LAWYER ENVIRONMENTAL GROUP MORE LAWYERS FOR DC THE CHICAGO LAW FIRM RUDNICK & WOLFE OPENED AN OFFICE IN WASHINGTON THE 190LAWYER FIRM WILL HAVE FOUR ATTORNEYS IN THE NEW OFFICE JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9301180058 930118 TECHNOLOGY BRIEF U S WEST INC FIRM'S UNIT SELECTED TO BUILD TELEPHONE NETWORK IN RUSSIA U S WEST INC SAID ITS INTERNATIONAL UNIT AND TWO OTHER PARTNERS WERE SELECTED TO COORDINATE A CONSORTIUM THAT WILL BUILD AN INTEGRATED DIGITAL CELLULAR PHONE NETWORK IN RUSSIA U S WEST ENGLEWOOD COLO AND ITS PARTNERS WERE ALSO AWARDED RIGHTS TO BUILD AND OPERATE CELLULAR SYSTEMS IN EIGHT OF 12 REGIONS U S WEST SAID IT HAS MEMORANDUMS OF UNDERSTANDING TO JOINTLY DEVELOP SYSTEMS IN TWO OTHER REGIONS AND THAT THE SELECTION COMMITTEE RECOMMENDED THAT THE WINNING CONSORTIUM IN ST PETERSBURG JOIN WITH U S WEST TO DEVELOP THE DIGITAL CELLULAR SYSTEM THERE WINNERS IN EACH REGION WERE INSTRUCTED TO WORK WITH U S WEST AND ITS PARTNERS TO PROVIDE A SEAMLESS NATIONWIDE CELLULAR SYSTEM WITH UNIFORM SERVICE EQUIPMENT AND RATES U S WEST'S PARTNERS ARE INTERTELECOM A JOINT STOCK COMPANY THAT PROVIDES INTERCITY AND INTERNATIONAL LONGDISTANCE SERVICE IN RUSSIA AND VART A GROUP OF RUSSIAN TELECOMMUNICATIONS EQUIPMENT MAKERS 9301180057 930118 BUSINESS BRIEF LA QUINTA MOTOR INNS LP COURT TO APPOINT INSPECTOR TO COUNT CONTESTED VOTE LA QUINTA MOTOR INNS LP SAN ANTONIO SAID A DELAWARE FEDERAL COURT AGREED TO APPOINT AN INDEPENDENT ELECTION INSPECTOR TO TALLY A CONTESTED VOTE TO DISSOLVE THE PARTNERSHIP LAST WEEK THE HOTEL AND RESTAURANT OPERATOR DISPUTED THE CLAIMS OF A DISSIDENT UNITHOLDER GROUP THAT SAID IT HAD RECEIVED THE APPROVAL OF MORE THAN 50 OF THE LIMITED PARTNERSHIP UNITS TO DISSOLVE AND RESTRUCTURE THE CONCERN THE UNITHOLDER GROUP RONIN PARTNERS LP HAS ACCUSED LA QUINTA'S GENERAL PARTNER LA QUINTA REALTY CORP OF CHARGING EXCESSIVE MANAGEMENT FEES AND TAKING CASH FROM THE PARTNERSHIP AT THE EXPENSE OF UNITHOLDERS LA QUINTA'S GENERAL PARTNER IN TURN HAS ACCUSED RONIN OF VIOLATING FEDERAL SECURITIES LAWS IN OBTAINING THE CONSENTS A CHARGE DENIED BY RONIN OFFICIALS LA QUINTA SAID THE ELECTION INSPECTOR'S TABULATION OF THE RONIN VOTE WILL BE PRESENTED TO THE COURT BY FEB 4 A HEARING ON THE MATTER IS SCHEDULED FOR FEB 8 9301180056 930118 BUSINESS BRIEF BECHTEL GROUP INC UNIT OBTAINS US CONTRACT FOR NUCLEARWASTE CLEANUP BECHTEL GROUP INC SAID A UNIT WAS AWARDED A CONTRACT BY THE US DEPARTMENT OF ENERGY TO MANAGE THE MAMMOTH CLEANUP OF 40 YEARS OF RADIOLOGICAL AND CHEMICAL CONTAMINATION FROM NUCLEAR RESEARCH AND PRODUCTION AT THE HANFORD SITE IN EASTERN WASHINGTON BECHTEL HANFORD INC A UNIT OF THE PRIVATE ENGINEERING AND CONSTRUCTION COMPANY IN SAN FRANCISCO WAS GRANTED A FIVEYEAR CONTRACT WITH A THREEYEAR RENEWAL OPTION BECHTEL WILL LEAD A TEAM EFFORT INCLUDING CH2M HILL INTERNATIONAL TECHNOLOGY CORP AND THERMOANALYTICAL INC TO DECONTAMINATE AND RESTORE THE ENVIRONMENT AT HANFORD BECHTEL SAID THE NEW CONTRACT CALLS FOR THE HANFORD PROGRAM TO BE FULLY UNDER WAY BY JULY 1 ESTIMATED EXPENDITURES DURING THE FIRST FIVE YEARS OF THE PROJECT WILL TOTAL 800 MILLION THE ENTIRE PROJECT IS EXPECTED TO STRETCH OVER 30 YEARS AT AN ESTIMATED COST OF 30 BILLION BECHTEL ADDED 9301180055 930118 BUSINESS BRIEF KEYCORP FIRM COMPLETES ACQUISITION OF PUGET SOUND BANCORP KEYCORP SAID IT COMPLETED THE STOCKSWAP ACQUISITION OF PUGET SOUND BANCORP NOW VALUED AT ABOUT 1 BILLION AND NAMED TWO DIRECTORS OF PUGET SOUND TO ITS BOARD THE MULTIREGIONAL BANK HOLDING COMPANY SAID IN ALBANY NY THAT WITH THE INCLUSION OF PUGET SOUND'S ASSETS ITS KEY BANK OF WASHINGTON UNIT IS THE STATE OF WASHINGTON'S SECONDLARGEST COMMERCIAL BANK WITH 190 BRANCHES AND MORE THAN 8 BILLION IN ASSETS PUGET SOUND BANCORP IS BASED IN TACOMA KEYCORP AND PUGET SOUND ANNOUNCED LAST MARCH THEY HAD AGREED TO MERGE IN A STOCK SWAP AT THE TIME THE DEAL WAS VALUED AT ABOUT 800 MILLION KEYCORP NAMED JOHN C DIMMER 64 YEARS OLD AND CHARLES R HOGAN 55 TWO PUGET SOUND DIRECTORS TO ITS 16MEMBER BOARD THEY WILL SUCCEED DIRECTORS WHO ARE EXPECTED TO RETIRE SOMETIME THIS YEAR 9301180054 930118 LAW BUSH DIARIES DURING IRANCONTRA CRISIS FAIL TO LIVE UP TO THEIR EXPLOSIVE BILLING BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT BUSH'S DIARIES WHICH MIGHT HAVE CONSTITUTED THE SMOKING GUN OF THE IRANCONTRA INVESTIGATION TURNED OUT TO BE MORE LIKE A POPGUN INSTEAD OF DEEP DARK SECRETS ABOUT THE CRISIS THEN ENGULFING THE REAGAN ADMINISTRATION MR BUSH'S PRIVATE TAPERECORDED MUSINGS FROM LATE 1986 WHICH PERHAPS WERE INTENDED FOR LATER PUBLICATION ARE THICK WITH THE FAWNING REFERENCES TO HIS BOSS AND PREP SCHOOL HOMILIES THAT HELPED CREATE HIS PUBLICIMAGE PROBLEM AS FAR AS I'M CONCERNED YOU FALL BACK ON THOSE OLD HOMEGROWN TRUTHS DO YOUR BEST TELL THE TRUTH TRY YOUR HARDEST AND THEN I GUESS JUST NOT WORRY AFTER ALL OF THAT HE SAID ON DEC 16 1986 THAT WAS JUST BEFORE HE OBSERVED THAT THE JOY AND SPIRIT OF CHRISTMAS IS FUN THEY'RE HILARIOUS SAID ONE SENIOR ADMINISTRATION OFFICIAL AS BUSH AIDES MADE WAY FOR BILL CLINTON AND HIS STAFF LAST WEEK IT'S ABOUT AS FRANK AS IF YOU INTERVIEWED HIM FOR 15 MINUTES THE DIARIES HAD CAUSED QUITE A POLITICAL STIR IN RECENT WEEKS AFTER THE PRESIDENT PARDONED FORMER SECRETARY OF DEFENSE CASPAR WEINBERGER AND FIVE OTHER IRANCONTRA FIGURES ON CHRISTMAS EVE LAWRENCE WALSH THE SPECIAL PROSECUTOR IN THE CASE ANGRILY ACCUSED MR BUSH OF MISCONDUCT IN NOT HAVING RELEASED THE DIARIES EARLIER AND MR BUSH'S WHITE HOUSE COUNSEL C BOYDEN GRAY OBVIOUSLY FEARED THE MATERIAL COULD HARM HIS BOSS POLITICALLY A REPORT BY GRIFFIN BELL MR BUSH'S LAWYER IN THE MATTER SHOWS THAT ONCE THE DIARIES WERE DISCOVERED IN A WHITE HOUSE SAFE LAST FALL MR GRAY DECIDED TO WITHHOLD THEM UNTIL AFTER THE ELECTION SOME ENTRIES ARE AMBIGUOUS ENOUGH TO PROVOKE DIFFERING INTERPRETATIONS THE WASHINGTON POST SEIZED ON MR BUSH'S NOV 5 1986 STATEMENT THAT I'M ONE OF THE FEW PEOPLE THAT KNOW FULLY THE DETAILS AS INDICATION THAT HE MAY NOT HAVE BEEN SO FAR OUT OF THE LOOP AS HE HAS MAINTAINED BUT A NEW YORK TIMES ACCOUNT SAID THE DIARY SUGGESTS HE WAS INDEED UNAWARE OF CRUCIAL ASPECTS OF THE EPISODE IN ANY CASE THERE ARE INTERESTING PASSAGES DEPICTING THE CONFUSION THAT DESCENDED ON THE REAGAN WHITE HOUSE AS THE SCANDAL BROKE INTO PUBLIC VIEW THEY SHOW MR BUSH CONCERNED ABOUT THE POLITICAL FALLOUT VACILLATING OVER HOW TO DEAL WITH THENSECRETARY OF STATE GEORGE SHULTZ FIRST HE WANTED TO PACIFY AN ANGRY MR SHULTZ THEN HAVE HIM DISMISSED THEN KEPT ON BECAUSE A FIRING WOULD MAKE MR REAGAN LOOK BAD MR BUSH EXPRESSES CHAGRIN AT ISRAELI INVOLVEMENT IN THE AFFAIR AT ONE POINT HE UNSUCCESSFULLY SUGGESTED TO MR REAGAN THAT HE HEAD UP A SPECIAL PANEL INVESTIGATING THE WHOLE AFFAIR AT ANOTHER HE VOICES AMBIVALENCE ABOUT HIS APPARENT EXCLUSION FROM KEY DECISION MEETINGS A TWINGE AS TO WHY THE HELL DIDN'T THEY INCLUDE ME BUT ON THE OTHER HAND YOU WIND UP NOT DRAGGED INTO THE MESS THE ENTRIES SHOW MR BUSH PREOCCUPIED BY POLITICS AFTER A MEETING WITH CONGRESSIONAL DEMOCRATS HE NOTES THAT FORMER HOUSE SPEAKER JIM WRIGHT WAS HIS OILY SELF HE SPIES 1988 PRESIDENTIAL RIVAL BOB DOLE EDGING AWAY FROM MR REAGAN AND AFTER A POLITICAL TRIP TO IOWA DISCUSSES THE ESSENTIALITY OF HAVING NEW ANSWERS FOR THE FUTURE A VISION BECAUSE THAT'S WHAT VOTERS ARE CRYING OUT FOR MR BUSH HOPED THAT NEARTERM POLITICAL DAMAGE FROM IRANCONTRA WOULD ULTIMATELY BE OFFSET BY HIS DEPICTION AS SOMEONE WHO DIDN'T PANIC DIDN'T RUN DIDN'T DUCK AWAY FROM THE PRESIDENT IN LARGE MEASURE THE DIARIES SEEM TO CONFIRM MR BUSH'S VICE PRESIDENTIAL IMAGE AS A GEEWHIZ SUPPLICANT HE DESCRIBES MR REAGAN AS CALM AMAZING ADMIRABLE SUCH A THOUGHTFUL GUY FRIENDLY AS CAN BE NOTWITHSTANDING THE JACKALS AND MONDAY MORNING QUARTERBACKS ASSAILING HIM PEOPLE ARE DOWN ON THE PRESIDENT ON THIS ONE MR BUSH OBSERVED WRONG WRONG PILING ON BUT HE OPTIMISTICALLY PREDICTS THE MAN'S BASIC INTEGRITY AND HONOR WILL RIDE UP AGAIN IT HAS TO HAPPEN I SOMEHOW THINK IT WILL MANY OF MR BUSH'S REFLECTIONS ON HIS OWN ROLE COME STRAIGHT OUT OF DUDLEY DORIGHT IT IS IMPORTANT TO LEVEL TO BE HONEST TO BE DIRECT MR BUSH TOLD HIMSELF AT ONE POINT AS THE AFFAIR PLAYED OUT HE CALLED ALLEGATIONS OF HIS INVOLVEMENT IN ARMS SHIPMENTS CRAZY INFORMATION AND SAID NEWS ON NOV 24 THAT ARMS SALES PROFITS HAD BEEN DIVERTED TO THE CONTRAS CAME AS A REAL BOMBSHELL TO HIM HE VOWED REPEATEDLY TO TAKE A LIE DETECTOR TEST TO DEMONSTRATE HIS INNOCENCE THOUGH SPOKESMAN MARLIN FITZWATER CONSIDERED THIS IDEA EXPLOSIVE AND MR BUSH DIDN'T FOLLOW THROUGH TRUE TO HIS UPPERCRUST BACKGROUND MR BUSH EXPRESSES DISGUST AT THE UGLINESS THE DISTRUST AND DISHONOR SURROUNDING THE AFFAIR WE'VE GOT TO GET IT BEHIND US BUT A SKEPTICAL PRESS WASN'T OBLIGING A FEW DAYS BEFORE CHRISTMAS 1986 HE LAMENTED THE DOUBT AND MEANNESS THAT GETS INTO THE FACES OF THE REPORTERS WHO SUGGESTED HE MAY HAVE BEEN MORE DEEPLY INVOLVED IT IS SIMPLY WRONG HE SAID I THINK I SHOULD KEEP MAKING IT CLEAR THAT I SUPPORT THE CONTRAS BUT NOT INVOLVED IN THESE SHENANIGANS PERHAPS HE SHOULD HAVE KEPT IN MIND THE LESSON HE DREW SOME FIVE WEEKS EARLIER FROM WATCHING MR REAGAN IN ACTION THOUGH THE ANNOY THE MEDIA JIBES OF HIS RECENT CAMPAIGN SUGGEST IT DIDN'T STICK WITH HIM LONG THE PRESIDENT BEARS UP BEAUTIFULLY MR BUSH SAID ON NOV 13 HE SMILES WHEN THE PRESS FIRES THESE TOUGH QUESTIONS THAT IS SOMETHING THAT I HAVE GOT TO LEARN AND LEARN BETTER I WILL KEEP TRYING DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9301180053 930118 ABREAST OF THE MARKET WALL STREET PROFIT ESTIMATES VARY GREATLY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ECONOMY MAY BE RECOVERING BUT ANALYSTS CAN'T AGREE ON WHAT THE REBOUND MEANS FOR EARNINGS OF COMPANIES THAT ARE ESPECIALLY SENSITIVE TO ECONOMIC CYCLES SO FAR FALLING INTEREST RATES NOT RAPIDLY RISING PROFITS HAVE BEEN DRIVING STOCKS HIGHER BUT AT SOME POINT AND PROBABLY SOONER RATHER THAN LATER ANALYSTS SAY EARNINGS HAVE TO CARRY MORE OF THE LOAD IF PRICES ARE TO CONTINUE CLIMBING DESPITE THE ECONOMIC REBOUND WALL STREET'S EARNINGS ESTIMATES FOR EVERY CYCLICAL INDUSTRY ARE MUCH WIDER THAN I HAVE SEEN IN THE PAST SAYS BENJAMIN ZACKS HEAD OF ZACKS INVESTMENT RESEARCH A FIRM THAT MONITORS ANALYSTS' EARNINGS PROJECTIONS MR ZACKS SAYS THERE'S TREMENDOUS UNCERTAINTY ABOUT THE SCOPE OF THE US ECONOMIC RECOVERY AND THE EXTENT TO WHICH THE DOWNTURN IN THE EUROPEAN AND JAPANESE ECONOMIES WILL PRESSURE EARNINGS OF US MULTINATIONALS IN ADDITION THERE IS MUCH THAT'S UNKNOWN ABOUT THE NEW ADMINISTRATION'S POLICIES AND HOW THEY WILL AFFECT CORPORATE PROFITS AS A RESULT EARNINGS ESTIMATES FOR MANY CYCLICAL COMPANIES RUN THE GAMUT TAKE UAL CORP FOR INSTANCE ALTHOUGH A NUMBER OF WALL STREET ANALYSTS THINK THE AIRLINE HOLDING COMPANY COULD POST A PROFIT OF BETWEEN 10 TO 12 A SHARE THIS YEAR ANOTHER CAMP OF ANALYSTS IS LOOKING FOR THE CARRIER TO BE IN THE RED SIMILARLY A HANDFUL OF ANALYSTS EXPECT PHELPS DODGE TO REPORT 1993 PROFIT OF 650 A SHARE WHILE OTHERS THINK THE COPPER CONCERN'S NET INCOME WILL WEIGH IN AT BELOW 2 A SHARE WITH STOCK PRICES LOOKING EXPENSIVE INVESTORS HAD BETTER HOPE THAT THE MORE OPTIMISTIC ESTIMATES ARE THE RIGHT ONES THE MARKET SEEMS TO BE QUITE OVERVALUED SAYS RICHARD PUCCI VICE PRESIDENT OF INSTITUTIONAL BROKERS ESTIMATE SERVICE LOOKING OUT ONE YEAR THE MARKET IS TRADING AT ABOUT 15 TIMES EARNINGS IT DOESN'T GET MUCH BETTER THAN THIS ADDS MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO UNFORTUNATELY THE MARKET IS DISCOUNTING A LOT OF GOOD EXPECTATIONS SO THERE IS LITTLE ROOM FOR DISAPPOINTMENT HE WARNS INVESTORS AGAINST RELYING ON ESTIMATES BECAUSE THIS EARLY IN THE YEAR FRANKLY NOBODY KNOWS HOW COMPANIES WILL FARE THE PICTURE MAY BECOME CLEARER IN THE NEXT FEW WEEKS AS THE PACE OF FOURTHQUARTER EARNINGS REPORTS GAINS MOMENTUM DESPITE ALL THE SIGNS OF AN IMPROVING ECONOMY WALL STREET ANALYSTS HAVE BEEN CHISELING AWAY AT PROFIT ESTIMATES FOR MANY COMPANIES PARTICULARLY THOSE WHOSE FORTUNES ARE TIED TO THE ECONOMY IN DECEMBER ANALYSTS RAISED THEIR ESTIMATES FOR 574 COMPANIES FOR THE LATEST QUARTER BUT THAT PALED IN SIGNIFICANCE COMPARED WITH THE 907 COMPANIES FOR WHICH EARNINGS ESTIMATES WERE CUT ACCORDING TO ZACKS AND ALTHOUGH ANALYSTS ARE NOW ESTIMATING FOURTHQUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES OR GAINS JUMPED 22 FROM THE SIMILAR PERIOD A YEAR AGO THAT'S A DIMMER OUTLOOK THAN THE 30 GROWTH THAT THEY FORESAW ONLY TWO MONTHS AGO I THINK THE RECOVERY JUST DIDN'T MEET THE TIME FRAME OF ANALYSTS SAYS MR ZACKS LAST YEAR'S PROFIT GAINS WERE BASED ON COSTCUTTING NOT ON UNIT VOLUME GROWTH AND THAT'S WHAT COMPANIES REALLY NEED NOW TO MAKE SIGNIFICANT PROGRESS PROFITS FROM BOTH EXPORTS FROM THE US AND FROM OPERATIONS OVERSEAS AREN'T GOING TO HELP MUCH EITHER ALTHOUGH THE US ECONOMY IS IMPROVING ANALYSTS HAVE HAD TO MOVE DOWN EXPECTATIONS BECAUSE OVERSEAS EARNINGS PROSPECTS HAVE DIMMED MR PUCCI SAYS THOUGH THE TREND TOWARD CUTTING ESTIMATES HAS SLOWED IN THE PAST FEW WEEKS MR PUCCI SAYS THAT IN NOVEMBER ANALYSTS WERE SLASHING EARNINGS ESTIMATES FOR 1993 23 AND IN DECEMBER THEY WERE SLICING PROJECTIONS 15 TYPICALLY ANALYSTS REVISE THEIR ESTIMATES ABOUT 1 A MONTH THE SCRAMBLE TO REJIGGER THE NUMBERS IS NOWHERE MORE APPARENT THAN WITH THE BIG THREE AUTO MAKERS ACCORDING TO MR PUCCI ANALYSTS HAVE LOWERED 1993 EARNINGS ESTIMATES FOR FORD MOTOR TO 264 A SHARE FROM 314 TWO MONTHS AGO THEY'VE ALSO REVISED DOWNWARD THEIR PROJECTIONS FOR GENERAL MOTORS FIGURING GM WILL EARN 173 A SHARE THIS YEAR DOWN FROM 2 LATE LAST YEAR BUT ESTIMATES FOR CHRYSLER HAVE BEEN TRENDING UP IN THE PAST TWO MONTHS MR PUCCI SAYS ANALYSTS ARE EXPECTING CHRYSLER TO EARN 324 THIS YEAR UP FROM PROJECTIONS OF ABOUT 3 TWO MONTHS AGO WHILE FORD AND GM LOOK OVERSEAS FOR A SIGNIFICANT PORTION OF THEIR EARNINGS CHRYSLER RELIES ON NORTH AMERICA FOR ITS BREAD AND BUTTER MAKING ANALYSTS' MORE SANGUINE ABOUT ITS PROSPECTS THIS YEAR EVEN IF EARNINGS COME IN ON THE DISAPPOINTING SIDE CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH SAYS INVESTORS SHOULD REMEMBER THAT THE PROFIT PICTURE ISN'T AS GLOOMY AS THE RAW NUMBERS MAY SUGGEST IN THE 1970S HE NOTES THAT PRICE INFLATION EXAGGERATED REPORTED EARNINGS AT MANY BIG COMPANIES AT THE SAME TIME AS CASH FLOW AT THESE FIRMS WAS COLLAPSING NOW CASH FLOW IS GROWING MUCH MORE RAPIDLY THAN REPORTED EARNINGS HE SAYS EVEN COMPANIES THAT COME IN UNDER EXPECTATIONS MAY BE GENERATING MORE CASH STILL MR CLOUGH SAYS THERE ARE SOME AREAS IN WHICH INVESTORS WILL BE WELLADVISED TO TREAD CAREFULLY THE FACT THAT PRICES AREN'T RISING MUCH WILL HURT THE COMMODITY PRODUCERS WHERE YOU ARE GOING TO GET MOST OF YOUR EARNINGS DISAPPOINTMENTS SAYS MR CLOUGH BUT AIRLINES AND TRUCKERS COULD SEE SOME LIGHT AT THE END OF THE TUNNEL THIS YEAR THOUGH MR CLOUGH EXPECTS BOTH GROUPS TO REPORT DISAPPOINTING EARNINGS EARLY IN THE YEAR HE THINKS THEIR PROSPECTS WILL IMPROVE AS THE YEAR PROGRESSES AND SOME ANALYSTS SAY CORPORATE AMERICA'S SLOW EARNINGS GROWTH WILL BE HEALTHY FOR THE STOCK MARKET IN THE LONG RUN I THINK WHAT'S GOING TO HAPPEN IS THAT INSTEAD OF A SHORT PERIOD OF EXPLOSIVE PROFIT GROWTH WE ARE GOING TO GET A LONGER PERIOD OF MODERATE SUSTAINABLE PROFIT GROWTH SAYS ABBY J COHEN MARKET STRATEGIST AT GOLDMAN SACHS THAT STABLE SLOW GROWTH ISN'T LIKE TO SPARK THE KIND OF INFLATIONARY TRENDS THAT LEAD TO SHARPLY HIGHER INTEREST RATES AND EVENTUALLY DECLINING ECONOMIC GROWTH STOCK PRICES CLIMBED AMID THE EXPIRATION OF STOCK INDEX FUTURES AND OPTIONS THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 324 POINTS TO 327112 ON SOCALLED DOUBLEWITCHING DAY STANDARD & POOR'S 500STOCK INDEX ADVANCED 121 POINTS TO 43715 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 087 POINT TO 24047 ADVANCING ISSUES TOPPED DECLINERS 1254 TO 610 BIG BOARD VOLUME SWELLED TO 306140000 SHARES FROM 280020000 THURSDAY ANALYSTS SAID A SPIRITED RALLY IN TECHNOLOGY STOCKS CONTINUED TO HELP PROPEL BROADER MARKET AVERAGES HIGHER A SHARP DROP IN BOND YIELDS ALSO SPURRED GAINS IN STOCK PRICES WESTINGHOUSE ELECTRIC WAS ONE OF THE MOST ACTIVELY TRADED STOCKS SLIDING ONE POINT TO 13 3/4 GENERAL ELECTRIC CAPITAL A UNIT OF GENERAL ELECTRIC AND WESTINGHOUSE TERMINATED DISCUSSIONS ON GE'S ACQUIRING THE COMPANY'S CREDIT SUBSIDIARY WELLS FARGO JUMPED 3 1/2 POINTS TO 85 1/4 ANALYSTS ATTRIBUTED THE GAIN IN THE BANK'S STOCK TO A POSSIBLE DECLINE IN PROBLEM LOANS DURING THE FOURTH QUARTER REVERSING A SHARP RISE CAUSED BY DEPRESSED CALIFORNIA REAL ESTATE VALUES AND NERVOUS COVERING BY SHORT SELLERS SUCH TRADERS SELL BORROWED STOCK IN THE HOPE OF BUYING IT BACK LATER AT A LOWER PRICE IF PRICES RISE HOWEVER SHORT SELLERS HAVE TO SCRAMBLE TO COVER THEIR SHORT POSITIONS BY BUYING STOCK AT HIGHER PRICES UNISYS ADDED 1/2 TO 12 1/8 JAMES UNRUH CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY'S FOURTHQUARTER PROFIT WILL BE AT THE HIGH END OF WALL STREET ANALYSTS' EXPECTATIONS OF BETWEEN 35 CENTS AND 40 CENTS A SHARE IN ADDITION MR UNRUH SAID 1993 EARNINGS WILL SHOW SIGNIFICANT IMPROVEMENT FROM 1992 LEVELS UAL CORP SWOONED 2 1/4 POINTS TO 128 1/4 THE AIRLINE HOLDING COMPANY SAID LATE THURSDAY THAT IT WILL TAKE A 630 MILLION AFTERTAX CHARGE IN THE FOURTH QUARTER FOR THE ADOPTION OF NEW ACCOUNTING STANDARDS RELATED TO RETIREE MEDICAL EXPENSES AND LIFE INSURANCE BENEFITS THE COMPANY SAID IT WILL RESTATE ITS EARNINGS FOR THE FIRST THREE QUARTERS OF 1992 TO REFLECT THE ADOPTION OF THE NEW ACCOUNTING STANDARD EMPLOYEE BENEFIT PLANS LOST 1 1/4 TO 12 1/2 THE COMPANY SAID IT HAD A LOSS OF 26 CENTS A SHARE IN ITS SECOND QUARTER COMPARED WITH NET INCOME OF 34 CENTS IN THE COMPARABLE PERIOD LAST YEAR NATIONAL EDUCATION SLIPPED 3/4 TO 5 3/8 RAYMOND JAMES REDUCED ITS INVESTMENT RATING ON THE STOCK TO SELL FROM HOLD 9301180052 930118 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BORGWARNER CORP INITIAL 33 MILLION COMMON SHARES VIA MERRILL LYNCH & CO CRACKER BARREL OLD COUNTRY STORE INC 15 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC DELL COMPUTER CORP FOUR MILLION COMMON SHARES VIA GOLDMAN SACHS & CO DUFF & PHELPS UTILITY & CORPORATE BOND TRUST INITIAL FOUR MILLION SHARES VIA MERRILL LYNCH ELAN CORP SECONDARY OFFERING OF 14 MILLION AMERICAN DEPOSITARY SHARES VIA MERRILL LYNCH FORD HOLDINGS INC 150 MILLION OF PREFERRED STOCK VIA LEHMAN BROTHERS INC GENERAL NUTRITION COS 4150000 COMMON SHARES VIA MORGAN STANLEY & CO HEALTH & REHABILITATION PROPERTIES TRUST SEVEN MILLION COMMON SHARES VIA MERRILL LYNCH ISIS PHARMACEUTICALS INC 25 MILLION COMMON SHARES VIA LEHMAN BROTHERS KAISER ALUMINUM & CHEMICAL CORP 400 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH OAKWOOD HOMES CORP TWO MILLION COMMON SHARES VIA MERRILL LYNCH PHYSICIANS HEALTH SERVICES INC INITIAL 35 MILLION CLASS A COMMON SHARES VIA DILLON READ & CO SALOMON BROTHERS HIGH INCOME FUND INC INITIAL FOUR MILLION COMMON SHARES VIA SALOMON BROTHERS INC STEIN MART INC SECONDARY OFFERING OF 25 MILLION COMMON SHARES VIA FIRST BOSTON CORP SUN TELEVISION & APPLIANCES INC 16 MILLION COMMON SHARES VIA MONTGOMERY SECURITIES VF CORP FOUR MILLION COMMON SHARES VIA GOLDMAN SACHS VINTAGE PETROLEUM INC 34 MILLION COMMON SHARES VIA DILLON READ SAN JOSE FINANCING AUTHORITY CALIF 1913 MILLION OF 1993 SERIES C REVENUE REFUNDING BONDS FOR THE CONVENTION CENTER PROJECT VIA COMPETITIVE BIDDING TEXAS PUBLIC FINANCE AUTHORITY 654 MILLION OF 1993 SERIES A IMPROVEMENT BONDS VIA COMPETITIVE BIDDING METROPOLITAN SEATTLE 90 MILLION OF SERIES W SEWER REVENUE BONDS VIA COMPETITIVE BIDDING TEXAS 75 MILLION OF SERIES 1993 COLLEGE STUDENT LOAN GENERAL OBLIGATION BONDS AND 52 MILLION OF VARIOUS WATER DEVELOPMENT GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING BROWARD COUNTY FLA 76 MILLION OF 1993 SERIES A B AND C SOLID WASTE SYSTEM REVENUE BONDS VIA A DILLON READ GROUP GUAM AIRPORT AUTHORITY 242 MILLION OF REVENUE BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO GROUP LOUISIANA PUBLIC FACILITIES AUTHORITY 55 MILLION OF BONDS MUNICIPAL BOND INVESTORS ASSURANCE CORP VIA A LEHMAN BROTHERS GROUP MAINE HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY 55 MILLION OF TAXABLE BONDS VIA AN AG EDWARDS & SONS INC GROUP ORANGE COUNTY HEALTH FACILITIES AUTHORITY FLA 111 MILLION OF HOSPITAL REVENUE BONDS FOR THE ORLANDO REGIONAL HEALTHCARE SYSTEM PROJECT MUNICIPAL BOND INVESTORS ASSURANCE CORP VIA A LEHMAN BROTHERS GROUP PORT OF PORTLAND ORE 115 MILLION OF REVENUE BONDS FINANCIAL GUARANTY INSURANCE CO VIA A FIRST CHICAGO CAPITAL MARKETS INC GROUP RHODE ISLAND HOUSING AND MORTGAGE FINANCE CORP 56 MILLION OF SINGLEFAMILY MORTGAGE REVENUE BONDS VIA A PAINEWEBBER INC GROUP WISCONSIN 150 MILLION OF GENERAL OBLIGATION BONDS VIA A BEAR STEARNS & CO GROUP 9301180051 930118 BUSINESS BRIEF USX CORP UNIT AND CYPRUS COAL SIGN LETTER FOR VENTURE COMPANY USX CORP'S US STEEL MINING UNIT AND CYPRUS COAL CO ENGLEWOOD COLO SIGNED A LETTER OF INTENT TO ESTABLISH A 5050 JOINT VENTURE COAL COMPANY FINANCIAL TERMS WEREN'T DISCLOSED UNDER THE AGREEMENT US STEEL MINING'S CUMBERLAND MINE IN GREENE COUNTY SOUTHWESTERN PENNSYLVANIA WOULD BE COMBINED WITH ADJACENT COAL RESERVES HELD BY CYPRUS ASSUMING CURRENT PRODUCTION LEVELS OF FOUR MILLION TONS A YEAR THE MINE WOULD YIELD MORE THAN 20 YEARS WORTH OF COAL THE COMPANIES SAID THE MINE SUPPLIES STEAM COAL TO DOMESTIC AND INTERNATIONAL MARKETS IT EMPLOYS ABOUT 400 WORKERS US STEEL MINING WOULD CONTINUE TO MANAGE THE MINING OPERATIONS THE JOINT VENTURE WOULD MANAGE THE MINE'S COMMERCIAL MATTERS 9301180050 930118 BUSINESS BRIEF USLIFE CORP INSURER PLANS 1992 CHARGE FOR ACCOUNTING CHANGES USLIFE CORP SAID IT WILL TAKE A ONETIME PRETAX CHARGE OF ABOUT 60 MILLION FOR 1992 TO REFLECT THE ADOPTION OF NEW ACCOUNTING RULES FOR POSTRETIREMENT HEALTH BENEFITS THE NEW YORK LIFE INSURANCE HOLDING COMPANY SAID THAT WHILE THE ANNUAL CHARGE FOR THESE BENEFITS IS EXPECTED TO INCREASE UNDER THE NEW STANDARDS THE CHANGE ISN'T EXPECTED TO MATERIALLY AFFECT ITS FINANCIAL RESULTS USLIFE ALSO SAID IT WILL RESTATE ITS FINANCIAL STATEMENTS FROM 1988 THROUGH 1992 TO REFLECT THE ADOPTION OF NEW INCOME TAX ACCOUNTING RULES THE ADJUSTMENT IS EXPECTED TO REDUCE EQUITY CAPITAL AT DEC 31 1992 BY ABOUT 80 MILLION TO 90 MILLION FOR 1991 USLIFE REPORTED NET INCOME OF 748 MILLION OR 483 A SHARE ON SALES OF 138 BILLION SEPARATELY THE COMPANY SAID IT COMPLETED THE SALE OF 150 MILLION OF 675 NOTES DUE JAN 15 1998 THE PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES AND TO FINANCE THE REDEMPTION OF LONGTERM DEBT THE UNDERWRITERS OF THE OFFERING ARE BEAR STEARNS & CO AND CHASE SECURITIES INC 9301180049 930118 TOUGH PASSAGE IN A TINY COMMUNITY IN EASTERN GERMANY CHANGE COMES HARD PEOPLE FIND WESTERN WAYS STRANGE AND FRIGHTENING MOURN LOSS OF SECURITY SWASTIKA ON THE MANOR HOUSE BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL THUROW GERMANY AT THE END OF VILLAGE STREET WHERE THE CROOKED COBBLESTONES GIVE WAY TO A POOL OF MUD A SWASTIKA GLARES FROM THE AGING BRICKS OF THUROW MANOR WE WOKE UP ONE MORNING AND THERE IT WAS SAYS FRIEDA FAHNING PARTING HER KITCHENWINDOW CURTAINS TO LOOK AGAIN AT THE NEONAZIS' CALLING CARD SHE SITS WEARILY AT HER TABLE POURS COFFEE FOR HERSELF AND AN OLD ACQUAINTANCE AND TEARFULLY RECITES A LITANY OF WOES HER HUSBAND HAS HAD A SEVERE STROKE WHICH SHE BLAMES ON THE PRESSURES OF ADAPTING TO A REUNIFIED GERMANY MOST OF HER NEIGHBORS HAVE LOST THEIR JOBS AND NOW THE SWASTIKA IT IS SO TERRIBLE SHE GROANS THE THINGS THAT HAVE HAPPENED SINCE YOU WERE LAST HERE THE FIRST TIME I VISITED THIS LITTLE FARMING COMMUNITY BEARING MY FAMILY NAME WAS IN 1986 AND THUROW'S RESIDENTS FARMERS ALL WERE TILLING EAST GERMAN SOIL A LARGE SIGN AT THE ENTRANCE TO TOWN A COMMUNIST VERSION OF A BURMA SHAVE BILLBOARD PROCLAIMED THE INDESTRUCTIBLE BROTHERHOOD WITH THE SOVIET UNION FOUNDATION OF OUR PROGRESS A DRIVE DOWN VILLAGE STREET THEN WAS A JOURNEY INTO THE DRAB WORLD OF A COMMUNIST COOPERATIVE THUROW MANOR THE BIGGEST HOUSE FOR MILES AROUND WAS A NEGLECTED CRUMBLING HULK CHICKENS AND DUCKS SCAMPERED AROUND THE MUDDY LANES THE FARMERS MINDLESSLY TRUDGED TO AND FROM THEIR EIGHTHOUR SHIFTS I WROTE IN SHORT TO VISIT THUROW IS TO SEE THE SHORTCOMINGS OF EAST BLOC SOCIALISM THREE YEARS AFTER THE FALL OF THE BERLIN WALL AND THE DEMISE OF EAST GERMANY I ONCE AGAIN DROVE DOWN VILLAGE STREET THE COMMUNAL PIGS AND COWS ARE MOSTLY GONE SOLD BY THE TREUHAND AGENCY IN CHARGE OF PRIVATIZATION THE FARMERS ARE MOSTLY UNEMPLOYED MADE REDUNDANT BY THE EFFICIENT METHODS OF THE WEST THE LITTLE GROCERY STORE IS CLOSED REPLACED BY IMPERSONAL TRUCKS THAT HONK UPON ARRIVAL AND SELL MEAT FRUIT AND VEGETABLES FROM THE BACK OF A TRAILER IN AN ABANDONED COW STALL WHERE MILKMAIDS ONCE TOILED SKINHEADS HAVE GATHERED TO DRINK BEER AND PLAN ATTACKS ON A REFUGEE HOSTEL IN A NEIGHBORING VILLAGE IN SHORT TO VISIT THUROW NOW IS TO SEE THE DARK AND DANGEROUS SIDE OF GERMAN REUNIFICATION EVERYTHING IN THUROW IS KAPUTT SAYS OLAF VIEK A DAIRYMAN IT WASN'T SUPPOSED TO BE THIS WAY THE DESPAIR STEMS NOT FROM ANY DESIRE BY THUROW'S 160 RESIDENTS TO TURN BACK THE CLOCK AND RESURRECT EAST GERMANY THEY RELISH THE FREEDOM TO TRAVEL THE CHANCE TO BUY BANANAS AND THE ABILITY TO PULL IN A HOST OF TELEVISION STATIONS FROM THEIR SATELLITE DISHES ALL ONCE NEARLY IMPOSSIBLE RATHER IT IS THAT UNITED GERMANY HAS BECOME MORE A DEN OF FOREBODING THAN A LAND OF OPPORTUNITY THERE IS TOO MUCH INSECURITY WE'RE NOT USED TO SUCH UNEMPLOYMENT AND VIOLENCE SAYS 22YEAROLD ULRIKE KRAUSE WHO STUDIED SOCIALIST ECONOMICS AND NOW IS GETTING A CRASH COURSE IN FREE ENTERPRISE BY FRYING BRATWURST AND POTATOES AT A NEW FASTFOOD SHACK ON VILLAGE STREET EVERYONE WONDERS WHAT WILL HAPPEN NEXT MOST OF THE UNEMPLOYED THEIR MINDS STILL BACK IN SOCIALISM ARE WAITING FOR THE STATE TO COME UP WITH SOMETHING FOR THEM TO DO THEY FEEL HUMILIATED BY THE BEWILDERING WAYS OF CAPITALISM FRIGHTENED THAT THEY WILL BE DISCARDED LIKE THE PIGS AND COWS AND TERRIFIED BY THE MOUNTING CHAOS FIFTEEN MILES TO THE SOUTH IN SCHWERIN CHANCELLOR HELMUT KOHL WAS JOSTLED BY PROTESTERS DURING A REUNIFICATION ANNIVERSARY CELEBRATION FORTY MILES TO THE WEST IN MOELLN THREE TURKS WERE BURNED TO DEATH IN AN ANTIFOREIGNER ATTACK IT'S RIDICULOUS IN A SMALL VILLAGE LIKE THIS BUT EVERYONE LOCKS THEIR DOORS MR VIEK SAYS THE ANGST IS AS HEAVY AS THE WINTER CLOUDS FEW PEOPLE HAVE ENDEAVORED TO REMOVE THE SWASTIKA FROM THE MANOR HOUSE FOR FEAR OF BECOMING THE SKINHEADS' NEXT VICTIM AND THOSE WHO HAVE DIDN'T WORK AT IT VERY HARD WE TRIED TO WASH IT OFF BUT IT DIDN'T WORK PAINTED ON TOO GOOD SAYS GIESPERT EDEM AN UNEMPLOYED PIG FARMER WHO RENTS A COUPLE OF ROOMS DIRECTLY ABOVE THE SWASTIKA WHY NOT PAINT OVER IT MAYBE SOMEONE FROM THE LOCAL GOVERNMENT WILL COME AND DO IT HE SHRUGS TO SOME OF THE ELDERLY HERE THE CLIMATE HARKS BACK TO THE RISE OF THE NAZIS 60 YEARS AGO I DIDN'T THINK THIS COULD EVER HAPPEN AGAIN SAYS MRS FAHNING WHO WAS THEN A CHILD IN EAST PRUSSIA PART OF RUSSIA TODAY RECALLING THE HORROR OF THE KRISTALLNACHT SWEEP AGAINST THE JEWS SHE AGAIN PULLS BACK THE KITCHEN CURTAINS TO LOOK ACROSS THE STREET AT THE COW STALL WHERE THE SKINHEADS GATHERED INSIDE HIDDEN FROM HER VIEW ANOTHER SWASTIKA IS SPRAYPAINTED ALONG WITH THE SLOGANS GERMANY FOR GERMANS AND FOREIGNERS OUT IS THAT WHAT IT SAYS I'VE BEEN AFRAID TO GO IN THERE SHE SAYS CLOSING THE CURTAINS IT IS A SHAME ON THE ENTIRE VILLAGE LOOK AT THIS BIGSCREEN TELEVISION NINE CHANNELS REMOTE CONTROL MR VIEK SAYS PROUDLY WHILE SWITCHING FROM ONE SOCCER GAME TO ANOTHER FROM THE COMFORT OF HIS CHAIR IN EAST GERMANY I HAD TO GET UP EACH TIME I WANTED TO SWITCH BACK IN 1986 MR VIEK HAD RETURNED HOME FROM THE COMMUNIST PARTY'S FIVEYEAR CONGRESS IN EAST BERLIN GIDDILY SECURE IN HIS PLANS FOR THE FUTURE AS A LOCAL LEADER OF THE PARTY'S FREE GERMAN YOUTH DIVISION HE WAS SHOWERED WITH GIFTS AND ATTENTION BY HIS COMMUNIST ELDERS WE HAVE TO KEEP THE YOUTH ON THE FARMS IN THE SMALL VILLAGES HE EAGERLY SAID THEN TODAY MR VIEK NOW 29 IS STILL DOWN ON THE FARM BUT IS VERY UNCERTAIN OF HIS FUTURE THE PARTY CONGRESS WAS ALL A LIE HE SAYS PERHAPS HE FRETS THE PROMISE OF REUNIFICATION IS TOO LAYING ASIDE THE TV REMOTE CONTROL MR VIEK SHUDDERS AT THE PRICE OF REUNIFICATION AND CAPITALISM ALTHOUGH HE WAS ABLE TO GET A JOB AT A DAIRY IN THE CITY UP THE ROAD MANY OF HIS FRIENDS HAVE BEEN DISPLACED BY MODERN TECHNOLOGY ONE LADY MILKS 400 COWS IN ONE DAY CAN YOU IMAGINE 400 COWS WE USED TO HAVE 10 PEOPLE TO DO THAT MANY HE SAYS INCREDULOUSLY WE MUST ALWAYS BE PROFITABLE DAY AFTER DAY HE ADDS THE WORKERS OWN SHARES IN THE COMPANY I MUST THINK LIKE THE COWS ARE MY OWN IF A COW GETS SICK AND DIES IT COSTS ME MONEY WE'VE ALREADY HAD TO FIRE A NUMBER OF WORKERS WHO HAVE PROBLEMS THINKING THIS WAY BUT EVERY UNEMPLOYED WORKER HE WARNS IS A POTENTIAL RECRUIT FOR THE NEONAZIS THEY SEE THAT THE REFUGEES ARE GETTING MORE MONEY IN AID THAN THEY GET IN UNEMPLOYMENT INSURANCE HE SAYS IT IS VERY FRUSTRATING THE OTHER DAY A NEIGHBOR CHASED AWAY THREE ROMANIAN REFUGEES WHO HAD BROKEN INTO THE VIEK HOUSE AND WERE RUMMAGING THROUGH THE KITCHEN WE NEVER HAD PROBLEMS LIKE THAT BEFORE HE SAYS THINGS ARE GETTING OUT OF CONTROL WHEN THE GERMANYS REUNITED MRS FAHNING'S HUSBAND BEGAN TO WORRY DAY AND NIGHT AS A POLICEMAN FOR THREE DECADES AND A COMMUNIST PARTY MEMBER FOR TWO HE WAS AFRAID THAT HE WOULD LOSE HIS PENSION AND THAT HIS HOUSE WOULD BE TAKEN AWAY BY THOSE SEEKING REVENGE WHEN THE SKINHEADS ROARED THROUGH TOWN HE PUT AN EXTRA LOCK ON THE FRONT DOOR WHEN HE WATCHED TELEVISION HE SAW VIOLENCE AND SEX SEVEN MONTHS AGO HE HAD A STROKE WHEN YOU LIVE UNDER THE RULES OF SOCIALISM ALL THOSE YEARS IT IS HARD TO ADJUST SAYS MRS FAHNING SOBBING SIX YEARS AGO MRS FAHNING THEN 60 WAS AN EFFERVESCENT WOMAN TRYING HARD TO PUT A HAPPY FACE ON LIFE IN A COMMUNIST COOPERATIVE SHE PROUDLY POINTED TO A WALL DECORATED WITH CITATIONS FROM THE STATE FOR HER COMMUNITYSERVICE WORK WE'RE NOT LACKING ANYTHING SHE CHEERFULLY SAID TODAY HER CITATIONS ARE PACKED AWAY THE COMMUNIST WOMEN'S ORGANIZATION IS DISBANDED NO ONE HAS CONTINUED WITH HER VOLUNTEER WORK ALL HER CHILDREN HAVE MOVED AWAY SOME TO THE WEST IN SEARCH OF WORK NOW THAT SHE COULD USE SOME HELP HERSELF SHE HAS NONE SHE RUMMAGES THROUGH A DRAWER AND RETRIEVES A SET OF COINS BEARING IMAGES OF EAST GERMAN COMMUNIST LEADERS PRESENTED TO HER FOR EXEMPLARY GOOD NEIGHBORLINESS TOGETHER THEY WERE WORTH 100 EAST MARKS I COULD HAVE EXCHANGED THEM AT THE TIME OF THE CURRENCY UNION FOR 100 DEUTSCHE MARKS AND BOUGHT SOMETHING SHE SAYS BUT I WANTED TO KEEP THEM AS PRESENTS FOR MY GRANDCHILDREN SO THAT THEY CAN SEE THAT THEIR GRANDMOTHER TRIED TO HELP OTHERS AND THAT NOT EVERYTHING WAS BAD IN EAST GERMANY THINKING OF HER GRANDCHILDREN BRINGS BACK THE TEARS TO HER EYES MAYBE MY GRANDSON WHO IS JUST BEGINNING SCHOOL CAN ONE DAY BE LIKE A WEST GERMAN SHE SAYS HOPEFULLY BUT THE REST OF US WILL ALWAYS BE EAST GERMANS WE DON'T KNOW ANYTHING ELSE OSWALD KLEMM SITS IDLY AT HIS KITCHEN TABLE PEELING AN APPLE HIS WIFE WALTRAUD STIRS A POT ON THE STOVE IN EAST GERMANY MR KLEMM FED THE PIGS AND HIS WIFE DELIVERED THE MAIL THEY BOASTED THAT EVERYONE HAD A JOB THE BAD THING HE SAID WAS THAT HE COULDN'T LEAVE THE COUNTRY TO VISIT RELATIVES IN AMERICA AFTER REUNIFICATION BOTH OF THEM THEN ABOUT 60 LOST THEIR JOBS THE PIGS WERE SOLD AND THE POST OFFICE WAS CLOSED DOWN TODAY THEIR PENSIONS TOTAL 800 A MONTH AND ALTHOUGH HE CAN NOW GO WHEREVER HE WANTS MR KLEMM MAINLY SITS IN HIS KITCHEN CONTEMPLATING HIS LOT COMMUNISM WAS CRAP BUT IN THE NEW GERMANY THE OLDER PEOPLE HAVE BEEN CAST ASIDE I STILL WANT TO WORK BUT WHO WILL HIRE US AT OUR AGE MR KLEMM SAYS MRS KLEMM STILL DELIVERS THE NEWSPAPER FROM SCHWERIN WHICH NETS HER 100 A MONTH THE NEWS THIS DAY SPLASHED ACROSS THE FRONT PAGE IS ABOUT A THREEMILLIONMARK BANK ROBBERY WITH UNEMPLOYMENT SO HIGH PEOPLE ARE STEALING EVERYTHING MRS KLEMM SAYS CARS CLOTHES PIGS PIGS EVEN PIGS ASKS MR KLEMM THIS IS OUR NEW GERMANY HIS WIFE SAYS EVERY DAY THEY STEAL SOMETHING DIFFERENT THE BILLBOARD SLOGAN PRAISING COMMUNIST BROTHERHOOD IS GONE BURNED IN A BONFIRE WHEN THE BORDER TO THE WEST OPENED IN ITS PLACE IS A FRESH GREEN AND WHITE SIGN ADVERTISING MARTINA HEISER'S PRINT SHOP A RARE WISP OF FREE ENTERPRISE ALONG WITH THE FASTFOOD STAND IN THUROW IN 1986 MRS HEISER WAS A SECRETARY AT A STATEOWNED TRACTORREPAIR FACTORY TODAY THE FACTORY IS ABOUT TO BE RETURNED TO THE TREUHAND A SECOND TIME ITS PRESENT OWNERS THE OLD BOSSES ARE ON THE VERGE OF GOING BUST BUT IN AN OFFICE IN THE BACK OF THE GROUNDS MRS HEISER'S XEROX PRINTERS ARE WHIRRING AWAY BEING UNEMPLOYED WAS UNTHINKABLE FOR EAST GERMAN CITIZENS BUT SUDDENLY THAT'S WHAT HAPPENED SHE SAYS I HAD TO FIND SOMETHING TO DO I WANTED TO SET AN EXAMPLE FOR MY CHILDREN TO SHOW THEM THAT LIFE IS HARD BUT YOU MUST GRAB IT WITH TWO HANDS AND DO WHAT YOU CAN THE PHONE RINGS HER SUPPLIER IN HAMBURG SAYS HE CAN'T UPGRADE HER COMPUTER BECAUSE THE SYSTEM SHE BOUGHT FROM A WESTERN SALESMAN WHO TOLD HER IT WAS MODERN IS ANTIQUATED THE PAPERS HAD BEEN FALSIFIED SHE HAD BEEN SWINDLED YEAH SHE SIGHS LIFE IS HARD SHE WALKS HER VISITOR TO THE DOOR THERE HANGS A NEW SLOGAN ONE SHE OFTEN PRINTS FOR EASTERN GERMAN CUSTOMERS OUT OF THE GLOOM A VOICE SPOKE TO ME LAUGH AND BE HAPPY FOR IT COULD GET WORSE' I LAUGHED AND WAS HAPPY AND IT GOT WORSE 9301180048 930118 MARKETING & MEDIA COURT UPHOLDS CANADIAN BAN ON TOBACCO ADS BY ROSANNA TAMBURRI AND CHRISTOPHER J CHIPELLO STAFF REPORTERS OF THE WALL STREET JOURNAL MONTREAL THE QUEBEC COURT OF APPEAL UPHELD A CANADIAN BAN ON TOBACCO ADVERTISING FORCING TOBACCO COMPANIES TO REMOVE DISPLAY ADVERTISING FROM STORES ACROSS CANADA THE JUDGMENT ALSO OPENS THE WAY FOR TOUGH NEW ANTISMOKING REGULATIONS THAT HAVE BEEN HELD IN ABEYANCE PENDING THE OUTCOME OF THE COURT CASE THE NEW REGULATIONS INCLUDE BIGGER HEALTH WARNINGS ON CIGARETTE PACKAGES AND PACKAGE INSERTS DETAILING THE HAZARDS OF SMOKING THE TOBACCO COMPANIES INVOLVED IN THE CASE SAID THEY INTEND TO APPEAL THE RULING TO THE SUPREME COURT THE GOVERNMENT SHOULDN'T BE ALLOWED TO TAKE AWAY OUR RIGHT TO FREELY COMMUNICATE WITH OUR CUSTOMERS SAID EDWARD J LANG CHAIRMAN OF RJRMACDONALD INC A SUBSIDIARY OF RJR NABISCO HOLDINGS CORP THE CANADIAN CIGARETTE MARKET IS MORE THAN 95 CONTROLLED BY RJRMACDONALD IMPERIAL TOBACCO LTD A UNIT OF IMASCO LTD AND ROTHMANS BENSON & HEDGES INC WHICH IS JOINTLY OWNED BY PHILIP MORRIS COS AND ROTHMANS INC A UNIT OF ROTHMANS INTERNATIONAL PLC ONLY RJRMACDONALD AND IMPERIAL WERE INVOLVED IN THE CASE CANADA ALREADY HAS SOME OF THE WORLD'S TOUGHEST ANTISMOKING REGULATIONS CANADA WAS AMONG THE FIRST COUNTRIES TO BAN SMOKING IN MANY PUBLIC PLACES AND IN AIRPLANES CANADIAN HEALTH MINISTER BENOIT BOUCHARD SAID CANADA HAS MADE A LOT OF PROGRESS IN COMBATING SMOKING BUT HE SAID IT STILL HAS MUCH WORK TO DO PARTICULARLY CONVINCING 400000 TEENAGERS TO QUIT THE HABIT IN A MAJORITY RULING THE QUEBEC COURT OF APPEAL OVERTURNED A LOWER COURT JUDGMENT THAT HELD THAT THE AD BAN VIOLATED TOBACCO COMPANIES' RIGHT TO FREE SPEECH THE BAN PROHIBITS TOBACCO ADVERTISING IN NEWSPAPERS AND MAGAZINES AND PHASES OUT ADVERTISING ON BILLBOARDS THE LAW ALSO BANS DISPLAY ADVERTISING IN STORES WHERE CIGARETTES ARE SOLD THE TOBACCO INDUSTRY HAD STOPPED ADVERTISING IN NEWSPAPERS MAGAZINES AND BILLBOARDS BUT PENDING THE OUTCOME OF THE QUEBEC COURT'S RULING IT HAD CONTINUED TO PUT UP DISPLAYS IN ABOUT 47000 RETAIL STORES THE TOBACCO COMPANIES SAID FRIDAY THEY HAVE INSTRUCTED THEIR SALES REPRESENTATIVES TO DISMANTLE THE DISPLAYS THE TOBACCO INDUSTRY VOLUNTARILY STOPPED TELEVISION AND RADIO ADVERTISING IN 1972 THE ONLY OTHER TOBACCO ADVERTISING THAT STILL CONTINUES IS THE SPONSORSHIP OF SPORTS AND CULTURAL EVENTS THE CANADIAN GOVERNMENT HAS BANNED THE USE OF CIGARETTE BRANDS IN THE SPONSORSHIPS AND ALLOWS ONLY THE USE OF CORPORATE NAMES BUT SOME TOBACCO CONCERNS HAVE SET UP SPECIAL COMPANIES NAMED AFTER THEIR CIGARETTE BRANDS TO SPONSOR EVENTS ANTISMOKING GROUPS HAVE URGED THE GOVERNMENT TO TIGHTEN ITS ADVERTISING RESTRICTIONS FURTHER TO PREVENT THE USE OF CIGARETTE BRANDS IN SPONSORSHIPS SOME PROVINCES ALSO ARE IMPOSING ANTISMOKING LEGISLATION THE ONTARIO GOVERNMENT IS EXPECTED TO INTRODUCE TODAY LEGISLATION RESTRICTING SALES OF TOBACCO IN DRUG STORES AND REQUIRING LICENSING OF TOBACCO RETAILERS 9301180047 930118 CORRECTIONS & AMPLIFICATIONS DANA CORP WILL TAKE A 440 MILLION CHARGE AGAINST ITS FIRSTQUARTER 1992 EARNINGS RELATED TO POSTRETIREMENT BENEFITS AND WILL RESTATE EARNINGS FOR THAT QUARTER TO REFLECT THE CHARGE DANA ALSO SAID ITS ENTIRE 1992 EARNINGS WILL BE REDUCED BY 25 MILLION TO REFLECT RETIREE COSTS AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE CHARGE WOULD BE TAKEN IN THE FIRST QUARTER OF 1993 AND THE CHARGE WOULD REDUCE THE CURRENT QUARTER'S EARNINGS BY 25 MILLION CHITTENDEN CORP'S NONPERFORMING ASSETS AS OF JUNE 30 1990 WERE 293 MILLION AN ARTICLE FRIDAY INCORRECTLY STATED THAT THE NONPERFORMING ASSETS WERE ABOUT 35 MILLION IN MID1990 9301180046 930118 INTERNATIONAL PERU'S STATE AIRLINE IS SOLD TO A CONSORTIUM LED BY AEROMEXICO SPECIAL TO THE WALL STREET JOURNAL LIMA PERU A CONSORTIUM OF INVESTORS BOUGHT PERU'S STATE AIRLINE AEROPERU FOR 54 MILLION THE GOVERNMENT'S FIRST SUCCESS THIS YEAR IN ITS AMBITIOUS PROGRAM TO PRIVATIZE ALL 200 STATE COMPANIES AEROPERU IS PERU'S SECOND LARGEST STATEOWNED COMPANY TO BE SOLD IN NOVEMBER STATE IRON MINE HIERROPERU WAS BOUGHT BY CAPITAL STEEL CORP OF BEIJING FOR 311 MILLION THE CONSORTIUM COMPRISING MEXICAN AIRLINE AEROVIAS DE MEXICO SA AND TWO PERUVIAN INVESTORS BOUGHT 70 OF THE AIRLINE ON SATURDAY THE BID COMFORTABLY SURPASSED THE 41 MILLION ASKING PRICE THE GOVERNMENT WILL RETAIN A 20 SHARE AND AEROPERU'S WORKERS THE REMAINING 10 AEROMEXICO WILL HOLD 47 OF THE SHARES PERUVIAN COMPANY SERMINCO SA WILL HOLD 21 AND PERUVIAN BUSINESSWOMAN WILL GET DORA ZAPATA 2 THE NEW OWNERS WILL HAVE TO COVER AEROPERU'S 22 MILLION DEBT AND WILL INHERIT THE AIRLINE'S AGING FLEET OF STAGE II AIRCRAFT THREE MCDONNELL DOUGLAS DC862S THREE BOEING B727100S AND TWO FOKKER F28S ONLY FIVE OF THE EIGHT PLANES ARE OPERATIONAL THE SALE PACKAGE ALSO INCLUDES RIGHTS TO AEROPERU'S INTERNATIONAL ROUTES FOR EIGHT YEARS AEROPERU FLIES TO MIAMI MEXICO CITY SAO PAOLO BRAZIL CARACAS VENEZUELA BUENOS AIRES BOGOTA COLOMBIA SANTIAGO CHILE LA PAZ BOLIVIA AND QUITO AND GUAYAQUIL ECUADOR AEROPERU ALSO HOLDS UNUSED FLIGHT PERMITS TO PARIS ROME MADRID PANAMA MONTREAL AND VANCOUVER BRITISH COLUMBIA 9301180045 930118 ELCO EXPECTS PROFIT FOR FISCAL 2ND PERIOD ROCKFORD ILL ELCO INDUSTRIES INC EXPECTS TO REPORT FISCAL SECONDQUARTER EARNINGS OF 13 TO 14 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF EIGHT CENTS A SHARE BUT CHAIRMAN JACK W PACKARD SAID IN AN INTERVIEW THAT THE COMPANY WILL FALL SHY OF ANALYSTS' 1ASHARE EARNINGS PROJECTION FOR THE YEAR ENDING JUNE 30 BY FIVE CENTS TO 15 CENTS A SHARE IN FISCAL 1992 ELCO HAD A LOSS OF 25 MILLION OR 52 CENTS A SHARE MR PACKARD PREDICTED SALES FOR THE YEAR WILL BE UP 3 TO 6 TO A RANGE OF 195 MILLION TO 200 MILLION SALES IN THE SECOND QUARTER ENDED DEC 31 ARE EXPECTED TO BE UP ABOUT 9 FROM A YEAR EARLIER AIDED BY AN 11 SALES SPURT AT ELCO'S INDUSTRIALPRODUCTS DIVISION MR PACKARD SAID HE ATTRIBUTED MUCH OF THE INCREASE TO SALES TO JAPANESE AUTOMOTIVE SUPPLIERS THAT BUSINESS IS PICKING UP AS A SIDE BENEFIT TO THE JOINT VENTURE ELCO FORMED IN 1989 WITH JAPAN'S NAGOYA SCREW MANUFACTURING CO THE JOINT VENTURE HELPED ELCO DEVELOP KNOWHOW IN DOING BUSINESS WITH THE JAPANESE THAT LED TO PLASTICPARTS SALES TO THE AUTO MAKERS BUT THE VENTURE ITSELF DIDN'T FARE SO WELL IN THE SECOND QUARTER MR PACKARD SAID ELCO WILL LOSE ABOUT 100000 OR TWO CENTS A SHARE ON THE VENTURE IN THE QUARTER AFTER BREAKING EVEN IN THE FIRST QUARTER BUT ELCO STILL HOPES TO BREAK EVEN ON THE VENTURE SOMETIME DURING CALENDAR 1993 ELCO'S SECONDLARGEST BUSINESS CONSUMER PRODUCTS SHOWED SALES GROWTH OF ONLY 6 IN THE SECOND QUARTER MR PACKARD NOTED SALES WEREN'T AS HIGH AS THEY MIGHT HAVE BEEN HE SAID BECAUSE THE COMPANY'S RETAILING CUSTOMERS CONTINUED TO TRIM INVENTORIES HE SAID HE HOPES RETAIL ORDERS WILL PICK UP BY SPRING MEANWHILE MR PACKARD SAID SOME BIG RETAILERS INCLUDING KMART CORP HAVE ASKED ELCO TO TAKE OVER MANAGEMENT OF THEIR INVENTORIES THROUGH ELECTRONIC TRACKING OF COUNTER SALES 9301180044 930118 WORLD MARKETS LAUNCH OF UNIT TRUSTS IN TAIWAN COULD OPEN NEW INVESTMENT ERA BUT MARKET SLUMP POSES RISK BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN IT COULD BE THE DAWN OF AN ERA OF INSTITUTIONAL INVESTMENT IN THE TAIWAN STOCK MARKET OR IT COULD BE A MASSACRE AFTER MORE THAN A YEAR OF PREPARATION 11 NEW TAIWAN FUNDMANAGEMENT CONCERNS ARE STARTING TO LAUNCH THEIR FIRST UNIT TRUSTS FOR INVESTMENT IN LOCAL SHARES THE FUNDRAISING IS A DOORDIE PROPOSITION EACH COMPANY HAS 45 CALENDAR DAYS TO RAISE A CLOSEDEND INVESTMENT FUND OF FOUR BILLION NEW TAIWAN DOLLARS US1588 MILLION EXECUTIVES OF THE NEW COMPANIES AND BROKERS FEAR THAT SEVERAL OF THE FUNDS WILL FALL SHORT OF THE REQUIREMENT THE REASON IS THAT THEY HAVE BEEN ATTEMPTING TO ATTRACT INVESTORS AMID A MARKET SLUMP THAT DROVE TAIWAN'S WEIGHTED PRICE INDEX TO A 26MONTH LOW AND DEPRESSED TRADING VOLUME TO LEVELS NOT SEEN SINCE THE MID1980S NO DOUBT THIS IS THE WORST FUNDLAUNCHING TIME IN THE PAST FIVE YEARS AND THERE ARE 11 COMPANIES COMING OUT AT THE SAME TIME SAID RICHARD N TSAI PRESIDENT OF GRAND PACIFIC SECURITIES INVESTMENT TRUST CO ONE OF THE NEW FUNDMANAGEMENT FIRMS AND A CHINA TRUST GROUP AFFILIATE SOME BROKERS SAY THAT MOST OF THE NEW COMPANIES WHICH BRING TOGETHER SEVERAL OF THE LARGEST BUSINESS GROUPS IN TAIWAN WILL END UP MEETING THEIR GOALS BUT WORRY IS WIDESPREAD THAT THE MARKET'S STEADY DECLINE SINCE THE RULING KUOMINTANG'S SETBACK IN LAST MONTH'S LEGISLATIVE ELECTIONS COULD CONTINUE UNDERCUTTING INVESTOR INTEREST IN THE FUNDS IN A SPOT OF RELIEF THE WEIGHTED PRICE INDEX CLOSED FRIDAY AT 331483 UP 1727 POINTS CONTINUING LAST WEEK'S RALLY SPURRED BY LEGISLATIVE PLANS TO REVIEW A REDUCTION IN THE STOCK TRANSACTION TAX LEGISLATORS VOTED TO HALVE THE LEVY TO 03 LATE FRIDAY YET WITH THE MARKET HAVING TUMBLED RECENTLY IN RESPONSE TO UNSETTLING POLITICAL NEWS FUND MANAGERS FEAR THAT SHARE PRICES HAVEN'T YET HIT BOTTOM AND THAT THE FUNDS' LAUNCH WILL BE DAMAGED THE MARKET'S MALAISE GOES BEYOND POLITICS TAIWAN STOCKS ARE STRUGGLING THROUGH A PROLONGED BEAR MARKET THAT SHOWS NO SIGN OF ENDING SOON WITH MONEY RELATIVELY TIGHT AND 1993 CORPORATE EARNINGS UNLIKELY TO SHOW SIGNIFICANT GAINS THE MARKET'S IMMEDIATE OUTLOOK IS BLEAK FOR LOCAL INVESTORS WHO TEND TO BUY WHEN THE MARKET IS UP AND SELL WHEN IT IS DOWN THERE ARE FEW REASONS TO JUMP INTO NEW FUNDS THE 10 CLOSEDEND FUNDS ALREADY LISTED ON THE TAIWAN STOCK EXCHANGE ISSUED BY THE MARKET'S FOUR EXISTING FUNDMANAGEMENT COMPANIES ARE TRADING AT A DISCOUNT OF BETWEEN 15 AND 20 TO THEIR NET ASSET VALUES SOME ANALYSTS ARGUE THAT AS A RESULT IT WILL BE DOUBLY HARD TO SELL THE NEW FUNDS AT FULL VALUE THE ENTRY OF THE NEW ASSETMANAGEMENT COMPANIES IS AN IMPORTANT STEP IN A GOVERNMENT STRATEGY AIMED AT ENCOURAGING A GREATER INSTITUTIONAL PRESENCE IN THE TAIWAN STOCK MARKET WHICH IS DOMINATED BY INDIVIDUAL INVESTORS GOVERNMENT OFFICIALS REPEATEDLY HAVE EXPRESSED THE HOPE THAT THE NEW MUTUAL FUNDS WILL HELP BRING ABOUT A MARKET TURNAROUND THE NATION'S SECURITIES AND EXCHANGE COMMISSION IN RECENT WEEKS HAS BEEN RUSHING TO COMPLETE THE PAPERWORK FOR THE FUNDS TO GET THEM TO MARKET AS QUICKLY AS POSSIBLE IF ALL 11 UNIT TRUSTS ARE FULLY SUBSCRIBED THE RESULTING NT44 BILLION IN CASH FOR INVESTMENT WOULD REPRESENT LESS THAN 2 OF THE TAIWAN MARKET'S CAPITALIZATION OF ABOUT NT25 TRILLION THIS ACTION COMES AS AUTHORITIES ARE TAKING OTHER STEPS TO BOOST INVESTMENT FOREIGN BROKERAGE FIRMS SOON WILL BE ALLOWED TO APPLY TO INVEST DIRECTLY IN THE STOCK MARKET FOR THE FIRST TIME AND THE LEGISLATIVE YUAN CUT THE TAIWAN STOCK EXCHANGE'S TRANSACTION TAX IMPOSED ON SELL ORDERS TO 03 FROM 06 BUT THE SEC'S OWN GROUND RULES MAY POSE A BARRIER LAST MAY WHEN THE SEC APPROVED 11 OF THE 14 CONSORTIA THAT APPLIED TO SET UP FUNDMANAGEMENT COMPANIES IT INSISTED THEY ALL RAISE MONEY FOR THEIR FUNDS AT ROUGHLY THE SAME TIME WITH LIMITATIONS ON THE TYPES AND AMOUNTS OF INVESTMENTS THEY INITIALLY CAN MAKE THIS APPROACH LEAVES TO THE MARKET THE POWER TO DECIDE HOW MANY FUNDMANAGEMENT COMPANIES ARE ACCEPTABLE BUT INDUSTRY EXECUTIVES SAY THE MARKET SLUMP COULD PRODUCE MORE LOSERS THAN THE GOVERNMENT MIGHT HAVE PREFERRED OF THE NT4 BILLION THAT EACH FUND MUST RAISE AN EASILY OBTAINABLE NT32 BILLION CAN COME FROM CORPORATE INVESTORS WITH A LIMIT OF NT200 MILLION FOR EACH INVESTOR THE PROBLEM LIES WITH THE REMAINING NT800 MILLION UNDER SEC REGULATIONS A MINIMUM OF 3000 RETAIL CUSTOMERS MUST ACCOUNT FOR THAT PART OF EACH FUND WITH ANY SINGLE INVESTMENT LIMITED TO NT1 MILLION BROKERAGE FIRMS ESTIMATE THAT THEY WILL NEED AT LEAST 8000 INVESTORS TO MEET THEIR QUOTA A DIFFICULT CHALLENGE LONDON STOCK PRICES CLOSED MARGINALLY HIGHER FRIDAY AFTER SWINGING IN A RELATIVELY NARROW RANGE FRANKFURT SHARES RALLIED 14 ON THE FIRM GERMAN BOND MARKET THE EXPIRATION OF OPTIONS AND SPECULATION THAT GERMAN INTEREST RATES MAY BE CUT THIS WEEK THE TOKYO MARKET WAS CLOSED FRIDAY FOR A HOLIDAY IN TOKYO MONDAY THE NIKKEI ROSE 1144 POINTS FROM THURSDAY TO CLOSE THE MORNING SESSION AT 1652704 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 59 POINTS TO 27651 TRIMMING ITS LOSS FOR THE WEEK TO 341 POINTS THE FT 30STOCK INDEX FELL 20 TO 21386 VOLUME WAS 6161 MILLION SHARES COMPARED WITH 6176 MILLION IN THE PREVIOUS SESSION IN THE PRICE CONSOLIDATION ON THE LAST TRADING DAY OF THE TWOWEEK ACCOUNT THE 100STOCK INDEX STUCK WITHIN A 19POINT BAND EARLY FIRMNESS STEMMED FROM EXPECTATIONS OF A SIGNAL FOR A CUT IN BRITISH LENDING RATES IN REACTION TO INFLATION DATA BUT WHEN THAT DIDN'T MATERIALIZE PROFITTAKERS JUMPED IN SENDING PRICES TO THE DAY'S LOWS THEN POSITIONSQUARING AT THE END OF THE TRADING ACCOUNT OFFERED SOME SUPPORT AND LEFT THE INDEX IN POSITIVE TERRITORY IN FRANKFURT THE DAX 30STOCK INDEX JUMPED 2081 POINTS TO 154455 INVESTOR CONFIDENCE WAS BOOSTED PARTLY BY RUMORS THAT THE GERMAN GOVERNMENT AND UNIONS WILL AGREE TO A 3 WAGE INCREASE WHICH COULD ALLOW A LENDINGRATE REDUCTION ELSEWHERE PARIS STOCKS RALLIED ON EUROPEAN RATECUT SPECULATION MILAN SHARES SOARED ON ITALIAN GOVERNMENT MEASURES TO BOOST THE MARKET AND FOREIGN INVESTORS' REBUILDING THEIR PORTFOLIOS AFTER A FLIGHT LAST SEPTEMBER IN MADRID STRONG BLUECHIP BUYING BY FOREIGN INVESTORS RAISED PRICES SHARPLY STOCKHOLM EQUITIES' GAINS ENDED A SEVENSESSION LOSING STREAK SYDNEY PRICES ADVANCED AIDED BY A FIRMER AUSTRALIAN DOLLAR SINGAPORE STOCKS CLIMBED ON A WAVE OF OVERSEAS BUYING HONG KONG SHARES FELL ON POLITICAL TENSIONS 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