PRELIMINARY FIGURES SHOW GROUP OPERATING PROFIT AT GERMANY'S COMMERZBANK AG ROSE ABOUT 20 LAST YEAR TO MORE THAN THREE BILLION MARKS 185 BILLION GERMAN NEWSPAPERS REPORTED IN THEIR FRIDAY EDITIONS COMMERZBANK CHAIRMAN MARTIN KOHLHAUSSEN TOLD THE NEWSPAPERS THAT EARNINGS IN THE FINAL TWO MONTHS OF THE YEAR WERE SO STRONG THAT THEY EXCEEDED THE 10MONTH FIGURES REPORTED IN DECEMBER PARTIAL OPERATING PROFIT WAS UP ABOUT 15 NET INTEREST INCOME INCREASED 10 AND COSTS ROSE 65 THE NEWSPAPERS SAID AS REPORTED LAST MONTH COMMERZBANK'S 10MONTH GROUP OPERATING PROFIT ROSE 13 ITS PARTIAL OPERATING PROFIT JUMPED 15 AND NET INTEREST INCOME ADVANCED 10 MR KOHLHAUSSEN'S STATEMENTS INDICATED THAT OWNACCOUNT TRADING WAS MORE PROFITABLE IN THE FINAL TWO MONTHS OF THE YEAR THE BANK CHAIRMAN INDICATED THAT PARTICULARLY GOOD RESULTS CAME FROM FOREIGNEXCHANGE TRADING 9301180042 930118 BUSINESS BRIEF RELIANCE ELECTRIC CORP PRODUCT LINE WON'T BE SOLD AFTER CUSTOMER'S OBJECTION CLEVELAND'S RELIANCE ELECTRIC CORP CITING OBJECTIONS FROM A CUSTOMER TOOK ITS TEST SYSTEMS PRODUCT LINE OFF THE MARKET ENDING ACMECLEVELAND CORP'S PLANS TO BUY THE LINE TERMS HADN'T BEEN DISCLOSED BUT THE LINE HAS 10 MILLION IN ANNUAL SALES THE LINE WAS TAKEN OFF THE MARKET AFTER ITS BIGGEST CUSTOMER A GOVERNMENTOWNED TELEPHONE COMPANY IN EGYPT OBJECTED TO THE SALE A RELIANCE SPOKESMAN SAID THE CUSTOMER ACCOUNTS FOR MORE THAN 25 OF THE PRODUCT'S ANNUAL SALES ACME SAID THE PURCHASE WOULD HAVE BROADENED ITS PRODUCT OFFERINGS ALSO IT WOULD HAVE GIVEN US SOME SOFTWARE JUMPSTART THAT WE WOULD HAVE LIKED TO HAVE SAID FRANCIS APPELDORN VICE PRESIDENT OF FINANCE HE SAID ACME WHICH MAKES ITS OWN TELEPHONE TESTING SYSTEMS WILL NOW SEARCH FOR ANOTHER PROVIDER OF THE TECHNOLOGY ACME MAKES AND SELLS TELECOMMUNICATIONS PRODUCTS RELIANCE MAKES INDUSTRIAL AND TELECOMMUNICATIONS EQUIPMENT 9301180041 930118 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 3/4 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 307 30 TO 89 DAYS 312 90 TO 119 DAYS 315 120 TO 149 DAYS 320 150 TO 179 DAYS 323 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 314 30 DAYS 318 60 DAYS 320 90 DAYS CERTIFICATES OF DEPOSIT 275 ONE MONTH 279 TWO MONTHS 283 THREE MONTHS 294 SIX MONTHS 317 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 317 THREE MONTHS 328 SIX MONTHS BANKERS ACCEPTANCES 302 30 DAYS 303 60 DAYS 304 90 DAYS 309 120 DAYS 312 150 DAYS 314 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 7/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 950 JAPAN 450 SWITZERLAND 788 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 774 60 DAYS 782 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 772 60 DAYS 781 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301180040 930118 POLITICS & POLICY CLINTON SCURRYING TO COMPLETE TEAM TO APPOINT 100 TO SUBCABINET JOBS SOON BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS WASHINGTON SCURRYING AT THE LAST MINUTE TO STAFF HIS NASCENT ADMINISTRATION PRESIDENTELECT CLINTON IS PREPARED TO NAME ABOUT 100 SUBCABINET OFFICIALS AS EARLY AS THIS WEEK THE PRESIDENTELECT HAS BEEN ROUNDLY CRITICIZED FOR FAILING TO MAKE GOOD ON HIS PROMISE TO HIT THE GROUND RUNNING PARTICULARLY ON PERSONNEL MATTERS BUT DURING THE PAST FEW DAYS AIDES SAID HE HAS FINALLY DEVELOPED A LIST OF ABOUT 100 HIGHLEVEL SUBCABINET OFFICIALS WHO MIGHT BE NAMED EVEN BEFORE THE INAUGURATION WEDNESDAY A BUNCH ARE READY ONE SENIOR CLINTON OFFICIAL SAID YESTERDAY WE'RE CLOSE TO NAMING A LOT OF THEM AMONG THOSE EXPECTED TO BE NAMED TO THESE JOBS ARE WILLIAM PERRY A DEFENSE OFFICIAL IN THE CARTER ADMINISTRATION WHO HAS BEEN OFFERED THE POST OF DEPUTY DEFENSE SECRETARY AND EUGENE MOOS A LONGTIME AGRICULTURE AIDE ON CAPITOL HILL WHO IS A TOP CANDIDATE FOR DEPUTY AGRICULTURE SECRETARY IN ADDITION JULIUS KATZ THE NO 2 OFFICIAL IN THE US TRADE REPRESENTATIVE'S OFFICE IS EXPECTED TO REMAIN AS ACTING TRADE REPRESENTATIVE UNTIL MR CLINTON'S DESIGNEE FOR THE JOB MICKEY KANTOR IS CONFIRMED MR CLINTON IS EXPECTED TO DELIVER A SERIES OF EXECUTIVE ORDERS SOON AFTER TAKING OFFICE WITH ONE LIKELY TO REVERSE THE SOCALLED GAG ORDER PREVENTING COUNSELORS AT FEDERALLY FUNDED HEALTH CLINICS FROM GIVING ADVICE ON ABORTIONS THE LIST OF ABOUT 100 SUBCABINET APPOINTEES IS LESS THAN HALF OF THE MORE THAN 200 TOP SUBCABINET POSTS THAT THE PRESIDENT MUST NOMINATE AND THAT THE SENATE MUST ENDORSE IT ALSO REPRESENTS A SMALL FRACTION OF THE MORE THAN 3000 POLITICAL APPOINTMENTS IN MR CLINTON'S HANDS AS SOON AS CABINET SECRETARIES ARE APPROVED BY THE SENATE MANY OF THEIR MOST IMPORTANT SUBCABINET JOBS WILL BE FILLED IMMEDIATELY WITH PEOPLE DESIGNATED AS CONSULTANTS AND DRAWN FROM THE NEW LIST AIDES SAID CLINTON STAFFERS EXPECT SIX OR SEVEN CABINET OFFICERS TO BE CONFIRMED THIS WEEK INCLUDING LLOYD BENTSEN AS TREASURY SECRETARY WARREN CHRISTOPHER AS SECRETARY OF STATE AND LES ASPIN AS DEFENSE SECRETARY CLINTON OFFICIALS ARE ESPECIALLY EAGER TO GET THE SECRETARIES OF DEFENSE AND STATE IN OFFICE QUICKLY GIVEN THE VOLATILE MILITARY SITUATION IN THE MIDDLE EAST TO HELP EVEN FURTHER MR CLINTON HAS ASKED TO STAY ON IN THEIR JOBS AT LEAST FOR NOW DENNIS ROSS AND EDWARD DJEREJIAN WHO ARE SENIOR STATE DEPARTMENT AIDES CONCENTRATING ON MIDDLE EAST RELATIONS AND IT NOW APPEARS THAT FRANK WISNER AN UNDERSECRETARY OF STATE WILL PROBABLY BECOME THE PENTAGON UNDERSECRETARY IN CHARGE OF POLICY CLINTON AIDES SAY AT THE WHITE HOUSE BUDGET OFFICE MR CLINTON'S CHOICE FOR DIRECTOR HOUSE BUDGET COMMITTEE CHAIRMAN LEON PANETTA D CALIF IS EXPECTED TO BRING SEVERAL COMMITTEE STAFFERS WITH HIM THE COMMITTEE'S DIRECTOR JOHN ANGELL IS EXPECTED TO BECOME EXECUTIVE ASSOCIATE DIRECTOR WHILE ITS ECONOMIST JOSEPH MINARIK AND PRESS SECRETARY BARRY TOIV ARE EXPECTED TO FILL THE EQUIVALENT SLOTS AT THE BUDGET OFFICE COMMITTEE COUNSEL MARTHA FOLEY ALSO IS LIKELY TO GET A JOB AT THE AGENCY SEPARATELY LISA CAPUTO THE PRESS SECRETARY FOR HILLARY CLINTON SAID THAT MRS CLINTON'S TWO BROTHERS TONY AND HUGH RODHAM WILL RETURN ABOUT 80000 IN CORPORATE CONTRIBUTIONS THEY HAD SOLICITED TO HOST A PARTY FOR CAMPAIGN WORKERS MS CAPUTO HOWEVER SAID THE PARTY PROBABLY STILL WOULD BE HELD BUT THE HOSTS WERE NOW SEEKING PRIVATE DONATIONS JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9301180039 930118 PHILIPPINE PRIESTS FIGHT THE BAD GUYS AND ALSO SAY MASS ACTIVIST FATHERS BATTLE LOGGERS WHO STRIP THE RAIN FOREST GOVERNMENT GIVES BLESSING BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL LUBAYAN THE PHILIPPINES IT'S A BRILLIANT SUNDAY MORNING IN THIS REMOTE MOUNTAIN HAMLET AND AN OVERFLOW CROWD OF FARMERS AND THEIR FAMILIES HAS COME TO THE TINY WOODEN CHAPEL HERE WITH A ROAR A MOTORCYCLE RIDER IN RAYBANS AND A DENIM JACKET RACES UP A RUTTED DIRT ROAD TO THE CHURCH THE REV MARIANO CHIA HAS ARRIVED BEARING A MESSAGE FROM THE ROMAN CATHOLIC CHURCH STOP THE ILLEGAL LOGGERS WHO ARE RAVAGING THE PHILIPPINE RAIN FORESTS CHRIST IS KING FATHER CHIA PREACHES AND AS CHRIST'S DISCIPLES WE HAVE TO PROTECT THE ENVIRONMENT HE GAVE US FATHER CHIA SAYS IT'S A MESSAGE OF PEACE BUT HE TAKES NO CHANCES BEFORE HE BEGINS HIS REGULAR SERVICE HE RADIOS HIS POSITION TO NUNS MONITORING HIS SAFETY FROM DIOCESE OFFICES 60 MILES AWAY STRAPPED TO HIS BELT IS A COMBAT KNIFE HALF PREACHER HALF FOREST RANGER FATHER CHIA 37 IS ONE OF A HANDFUL OF CATHOLIC CLERGY HERE CRUSADING AGAINST LOGGERS WHO HAVE MADE FORTUNES STRIPPING LUSH HILLSIDES BARE OF TROPICAL HARDWOODS IT'S A DANGEROUS MISSION IN NOVEMBER THE CHURCH HAD TO TRANSFER ONE OF HIS COLLEAGUES AFTER WHAT DIOCESE OFFICIALS BELIEVE WERE AT LEAST TWO ASSASSINATION ATTEMPTS ANOTHER ACTIVIST PRIEST THE REV NERY SATUR WAS MURDERED LAST YEAR IN A SHOTGUN AMBUSH PRESUMABLY BY IRATE LOGGERS WHO HAD SENT HIM DEATH THREATS NO ARRESTS HAVE BEEN MADE IT WAS FATHER CHIA WHO FOUND FATHER SATUR'S BODY WE ARE NOT THINKING OF THE DANGER TO US FATHER CHIA SAYS IF ALL THE TREES ARE CUT DOWN WHAT WILL HAPPEN TO THE LOWLANDS TO OUR FARMERS TO THE CHILDREN WHAT WILL HAPPEN IS ALREADY APPARENT ACROSS THE MORE THAN 7100 ISLANDS OF THE PHILIPPINES EXCEPT FOR AN OCCASIONAL SCRAGGLY TREE MANY STEEP HILLSIDES ARE BARREN OF THE FORESTS THAT USED TO CARPET THE COUNTRYSIDE AND COLLECT HEAVY RAINS NO LONGER ANCHORED BY TREE ROOTS MORE TOPSOIL WASHES AWAY WITH EACH STORM THE TRANSFORMATION WROUGHT BY LOGGING LEGAL AND ILLEGAL HAS DISRUPTED THE RHYTHMS OF LIFE SOME RICE PADDIES ARE DRY AND OTHERS ARE FLOODED IN THE BROAD VALLEY SURROUNDING FATHER CHIA'S PARISH IN THE SMALL TOWN OF VALENCIA A HYDROELECTRIC DAM 30 MILES AWAY IS SO CLOGGED WITH SILT THAT ONLY ONE OF ITS THREE TURBINES CAN OPERATE LAST YEAR HEAVY RAINS IN NEARBY ORMOC PROVINCE RUSHED OVER DENUDED HILLS SPAWNING FLASH FLOODS THAT KILLED AN ESTIMATED 7000 PEOPLE WHAT'S THE USE OF DEVELOPMENT IF MAN IS DEHUMANIZED ASKS BISHOP GUADENCIO ROSALES THE SPIRITED 60YEAROLD LEADER OF THE ANTILOGGING MOVEMENT FROM HIS HOUSE IN THE PROVINCIAL CAPITAL OF MALAYBALAY THE WHITEHAIRED BISHOP HAS FOSTERED WHAT HE HOPES WILL BE A MODEL OF NONVIOLENT CHURCH ACTIVISM DRIVING A TOYOTA LANDCRUISER BISHOP ROSALES IS ON THE ROAD ALMOST CONSTANTLY OFFERING ENVIRONMENTAL COUNSELING TO THE 880000 PEOPLE MAINLY CATHOLICS WHO LIVE WITHIN THE DIOCESE A CHURCH RADIO STATION BROADCASTS IDEAS TO STOP LOGGERS AND REPLENISH FORESTS THE BIGGEST PROBLEM HE FACES IS THAT THE LOGGING ISN'T ALWAYS ILLEGAL INDEED MANY OF THE COUNTRY'S BIGGEST CORPORATIONS PROFIT FROM LEGAL LARGESCALE LOGGING OPERATIONS LEGAL LOGGERS POINT OUT THAT THEY AT LEAST REFOREST AREAS WHERE THEY CULL TREES AND INSIST THEY ARE HURT AS MUCH AS ANYONE BY ILLEGAL CLEARCUTTING THAT WIPES OUT ENTIRE FORESTS ANYBODY NOT ONLY THE CHURCH WHO IS AGAINST ILLEGAL LOGGING WE SUPPORT SAYS ANTONIO OLIZON WHO RUNS A TIMBER MILL IN NEARBY CAGAYAN DE ORO AND IS PRESIDENT OF THE PHILIPPINE WOOD PRODUCTS ASSOCIATION BUT THEY MUST DRAW A LINE BETWEEN LEGAL AND ILLEGAL LOGGING INDEED LOGGING OPPONENTS LIKE THE BISHOP FIND THEY MUST DRAW EVEN MORE DELICATE DISTINCTIONS BECAUSE MUCH SMALLSCALE LOGGING HAS BEEN DONE BY THE VERY PEOPLE THE BISHOP WANTS TO PROTECT POOR FARMERS AND FOREST DWELLERS WHO ARE ATTRACTED BY THE AMOUNT OF MONEY THEY CAN EARN SELLING TROPICAL HARDWOODS EVERYBODY DOES IT SAYS MAYDA PANDIAN THE 45YEAROLD CHIEF OF A TRIBE OF FOREST DWELLERS THE MONEY IS SO GOOD THAT THE TRUNK OF ONE TREE CAN BRING ENOUGH CASH TO FEED A FAMILY FOR THREE MONTHS MAKES SOME PRIESTS PESSIMISTIC ABOUT THEIR CAUSE I DON'T THINK THE LOGGING WILL STOP AS LONG AS THERE IS A SINGLE TREE STANDING SAYS THE REV ROGER BRENNAN A 48YEAROLD CANADIAN MISSIONARY THE PEOPLE HAVE TO EAT LATELY THOUGH EVEN THE CHURCH'S HIGHEST ECHELONS HAVE BECOME ENVIRONMENTALLY ACTIVE IN A NEW CATECHISM THE CHURCH LAST NOVEMBER SAID THE EARTH IS MANKIND'S HERITAGE AND MUST BE PROTECTED THAT GAVE A LIFT TO THE LOCAL MOVEMENT WHICH BEGAN HALF A DECADE AGO IN SAN FERNANDO TOWNSHIP A SCATTERING OF SMALL WOODEN HOUSES IN THE MOUNTAINS ABOUT 70 MILES FROM MALAYBALAY UNTIL THE 1980S IT WAS NEAR THE EDGE OF A RAIN FOREST TRIBES OF ABORIGINAL MANOBOS HUNTED AND FISHED TRADING WITH LOWLANDERS WHO USED SLASHANDBURN METHODS TO CLEAR LAND FOR FARMING THEN THE LOGGERS CAME TO CUT DOWN WHITE LAUAN SOME 150 FEET TALL AND THE NARRA TEAK MAHOGANY AND RATTAN THAT MAKE UP THE JUNGLE ENTER THE REV PAT KELLY A RUDDY CANADIAN MISSIONARY WHO HAS SPENT 33 YEARS IN THE PHILIPPINES AND SPEAKS THE CEBUANO DIALECT WHEN HE ARRIVED HERE IN 1987 A DROUGHT WAS WORSENING ALREADY BLEAK CONDITIONS THE FOREST WAS THE PEOPLE'S MARKET THEIR SCHOOL FATHER KELLY RECALLS THEN THERE WAS LOGGING AND IT ALL ENDED FATHER KELLY SAYS HE TRIED TO GIVE THE PEOPLE A VOICE BY TALKING TO THE LOGGING COMPANIES THE TALKS WENT NOWHERE SO WITH THE ENCOURAGEMENT OF FATHER KELLY AND THE CHURCH LOCALS BEGAN TO BLOCKADE ROADS DESPITE BEATINGS BY HIRED THUGS WORKING FOR THE ENRAGED LOGGERS WHO WERE OPERATING LEGALLY FINALLY FATHER KELLY AND HIS FLOCK WAGED A HUNGER STRIKE AT THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES IN MANILA IT WORKED THE GOVERNMENT BANNED ALL LOGGING IN BUKIDNON PROVINCE WHERE SAN FERNANDO IS LOCATED THE DESTRUCTION OF THE FORESTS DIDN'T STOP RENEGADE LOGGERS MOSTLY SMALLTIME LOCALS FLOUTED THE BAN SOME OFFICIALS IMPOUNDED THEIR SHIPMENTS OTHER OFFICIALS BECAME INVOLVED IN THE ILLEGAL TRADE THEMSELVES THE PRIESTS MAY BE GENUINELY SELFLESS BUT NOT EVERYBODY IS SAYS JOSE GAPAS OF THE GOVERNMENT'S ENVIRONMENT DEPARTMENT IN 1990 BISHOP ROSALES ASKED THE GOVERNMENT TO DEPUTIZE THE CLERGY AS FOREST OFFICERS MANILA CONSENTED WITHIN WEEKS PRIESTS IN BUKIDNON WERE LEADING RAIDS ON ILLEGAL LOGGING SITES AND STOPPING LOGGERS' TRUCKS ONE CHURCH GROUP IN SAN FERNANDO LEFT A CHRISTMAS MASS TO CATCH A TRUCKLOAD OF NARRA THAT WAS PASSING THROUGH TOWN THE LOGGERS THREATENED US WITH GRENADES SAYS ARCELI PENANO THE GROUP'S LEADER AND A HOUSEWIFE WITH FIVE CHILDREN BUT WE WOULDN'T BACK DOWN AFTER FATHER SATUR'S DEATH IN OCTOBER 1991 THE LOCAL CHAPTER OF THE KNIGHTS OF COLUMBUS THE CATHOLIC MEN'S GROUP BEGAN RIDING SHOTGUN FOR SOME PRIESTS WE DIDN'T WANT ANYBODY THREATENING OUR PRIESTS SAYS TEODORICO AGAWIN AN AGRICULTURAL WORKER WHO SAYS HE CARRIED AN M16 AND A PISTOL ON SEVERAL OUTINGS HE QUIT HE SAYS AFTER NARROWLY AVERTING AN AMBUSH OF A PRIEST LAST FEBRUARY LAST MONTH THE CHURCH TRANSFERRED THAT PRIEST THE VICTIM OF AN EARLIER ASSASSINATION ATTEMPT FATHER CHIA SAYS THE POLICE LIKE THE KNIGHTS OF COLUMBUS ARE NOW TOO AFRAID TO ACCOMPANY HIM WHEN HE GOES TO SEIZE ILLEGAL LOGS BUT HE WON'T BACK DOWN IT'S OUR RESPONSIBILITY TO LOOK AFTER OUR CHILDREN HE SAYS 9301180038 930118 CORPORATE FOCUS CNN FIGHTS TO BECOME WORLDWIDE NETWORK OF CHOICE TURNER BROADCASTING UNIT HAS BEEN CHALLENGED OVERSEAS SINCE GULF WAR BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL CABLE NEWS NETWORK HAD THE WORLD'S UNDIVIDED ATTENTION THE LAST TIME WAR BROKE OUT IN THE PERSIAN GULF NOW AS HOSTILITIES RESUME CNN IS FIGHTING TO KEEP INTERNATIONAL VIEWERS FROM CHANGING CHANNELS COMPETITORS INSPIRED BY CNN'S 1991 GULF COVERAGE HAVE MOUNTED STRONG CHALLENGES OVERSEAS WHILE RATINGS AREN'T AVAILABLE FOR THE PAST WEEK THE COMPETITION HAS GIVEN CNN REASON FOR CONCERN BRITISH BROADCASTING CORP'S INTERNATIONAL TELEVISION NEWS SERVICE LAUNCHED IN MARCH 1991 CLAIMS TO HAVE OVERTAKEN CNN'S VIEWERSHIP IN INDIA AND ELSEWHERE IN ASIA AND AFRICA THE UKBASED SKY TV SATELLITE SERVICE PARTOWNED BY RUPERT MURDOCH'S NEWS CORP BECAME PROFITABLE LAST YEAR AND MR MURDOCH MAY EXPAND THE SKY NEWS SERVICE IN EUROPE AND ASIA IN ADDITION EUROPEAN COUNTRIES LAUNCHED A FIVELANGUAGE NETWORK CALLED EURONEWS JAN 1 SPONSORS ESTIMATE IT WILL REACH 40 MILLION HOMES BY YEAR END CNN REACHES ABOUT 45 MILLION HOMES WITH ONE EYE ON THE GROWING COMPETITION ATLANTABASED TURNER BROADCASTING SYSTEM INC PLANS TO DOUBLE CNN INTERNATIONAL'S BUDGET THIS YEAR CNN INTERNATIONAL THE OVERSEAS VERSION OF CNN IS GENERATING MORE OF ITS OWN FEATURES TO REPLACE CNN'S ATLANTABASED NEWSCASTS AND THE NETWORK PLANS TO SPEND 5 MILLION ON A NEW PRODUCTION FACILITY THAT WILL LET IT SEND DIFFERENT VERSIONS OF CNN INTERNATIONAL TO DIFFERENT TIME ZONES CNN HAS STARTED EXPERIMENTING WITH SUBTITLES TOO SEPARATELY TURNER IS STARTING TO SET UP FOREIGNLANGUAGE NETWORKS WITHIN SEVERAL COUNTRIES TURNER IS INVESTING AN ESTIMATED 20 MILLION TO BECOME A PARTNER IN A NEWS CHANNEL STARTED IN NOVEMBER BY GERMAN BROADCASTERS TURNER OFFICIALS WON'T CONFIRM THE FIGURE THE COMPANY ALSO HELPED LAUNCH A RUSSIAN NEWSANDENTERTAINMENT STATION IN MOSCOW JAN 1 AND TURNER EXECUTIVES SAY THEY ARE STUDYING WHETHER TO START A 24HOUR SPANISH NEWS NETWORK POSSIBLY WITH A PARTNER CNN ALREADY SUPPLIES TWICEDAILY SPANISH NEWSCASTS TO TELEMUNDO GROUP INC A NEW YORKBASED HISPANIC BROADCASTING COMPANY CNN OFFICIALS SAY THEY MAY LOOK AT STARTING A JAPANESE CHANNEL TOO COMPETITION HAS BEEN GOOD FOR CNN SAYS W THOMAS JOHNSON THE NETWORK'S PRESIDENT IT HAS GIVEN US A SENSE OF ADDED URGENCY INTERNATIONAL EXPANSION IS ESSENTIAL FOR TURNER BECAUSE ITS NETWORKS ALREADY REACH ALMOST ALL CABLE HOMES IN THE US AND THEIR RATINGS HAVE BEEN FLAT IF CNN DOESN'T QUICKLY EXPAND BEYOND AN AMERICAN SERVICE IT COULD BE RELEGATED TO A NICHE PLAYER IN COUNTRIES WHERE HOMEGROWN 24HOUR NEWS NETWORKS ARE STARTING UP THOMAS SCHAEFFER AN AMERICAN WHO RUNS A CABLE COMPANY IN WINDSOR UK SAID HE WAS SURPRISED TO FIND HOW LOW CNN RANKED IN LOCAL RATINGS PEOPLE OVER HERE GREATLY APPRECIATED THE DESERT STORM COVERAGE BUT THEN THEY WENT BACK TO READING NEWSPAPERS AND WATCHING LOCAL NEWS AND SKY NEWS HE SAID CNN FIRST SENT ITS SATELLITE SIGNAL OVERSEAS IN THE EARLY 1980S IN ORDER TO GAIN THE RIGHTS TO USE NEWS VIDEOS FROM OTHER COUNTRIES EVENTUALLY CNN STARTED SELLING AN INTERNATIONAL SERVICE TO HOTELS EMBASSIES CABLE OPERATORS AND HOME SATELLITE DISH OWNERS BUT UNTIL RECENTLY MOST OF THE NEWS WAS THE SAME NEWS THE US WAS SEEING THE BBC'S WORLD SERVICE TELEVISION BY CONTRAST CLAIMED 60 OF ITS FEATURES WERE GENERATED FOR THE INTERNATIONAL SERVICE CNN INTERNATIONAL EXPECTS TO HAVE 70 ORIGINAL MATERIAL BY YEAR END TURNER WAS SLOW TO EXPAND ITS RELATIONSHIPS WITH LOCAL BROADCASTERS THERE'S A LOGIC IN ATLANTA THAT SAYS WE'LL DO IT ALONE' SAYS CHARLES BONAN A FORMER TURNER EXECUTIVE WE HAD ALL KINDS OF OFFERS FROM POTENTIAL PARTNERS BUT TED WASN'T INTERESTED TED TURNER CHAIRMAN OF TURNER BROADCASTING EVENTUALLY AGREED THAT THE COMPANY MIGHT NEED PARTNERS TO TAP MASS MARKETS IN OTHER COUNTRIES ESPECIALLY THOSE THAT LIMIT FOREIGN OWNERSHIP OF THE MEDIA ASSOCIATES SAY BUT FINDING THE RIGHT PARTNER IS DIFFICULT AS THE COMPANY LEARNED WHEN IT TRIED TO LAUNCH CNN DEUTSCHLAND A 24HOUR NEWS NETWORK IN GERMANY WHEN CNN TRIED TO ENTER AN AGREEMENT WITH A GROUP OF PUBLIC BROADCASTERS IN GERMANY THE PROPOSAL GOT BOGGED DOWN IN BUREAUCRACY AND A POLITICAL DISPUTE OVER WHETHER THE PUBLIC STATIONS SHOULD BE PRIVATIZED TURNER DIDN'T GET ANY FURTHER WITH CIE LUXEMBOURGEOISE DE TELEDIFFUSION A LUXEMBOURGBASED COMPANY WITH A GERMAN TV NETWORK ALSO TURNER FACED OPPOSITION FROM ONE OF ITS MAJOR SHAREHOLDERS TIME WARNER INC SAID STEPHAN GOETZ EUROPEAN MANAGING DIRECTOR FOR COMMUNICATIONS EQUITY ASSOCIATES A MEDIA BROKERAGE FIRM TIME WARNER WAS HELPING TO START A GERMAN NEWS NETWORK CALLED NTV AND OBJECTED TO CNN DOING A SEPARATE NEWS SERVICE IN GERMANY MR GOETZ SAID INSTEAD CNN BOUGHT A 275 STAKE IN NTV TURNER OFFICIALS SAY THEY GOT GUIDANCE BUT NOT PRESSURE FROM TIME WARNER THEY SAY NTV NOT ONLY GIVES CNN INTERNATIONAL ADDED NEWSGATHERING STRENGTH IN GERMANY THE NETWORK PROVIDED CNN WITH LIVE COVERAGE NEW YEAR'S EVE OF A TORCHLIGHTING LAUNCHING EUROPEAN UNITY FOR INSTANCE BUT ALSO SHOULD GENERATE PROFITS FOR TURNER IN TWO OR THREE YEARS STILL CNN WON'T ACTUALLY BE MANAGING THE NETWORK THE GERMAN DEAL ILLUSTRATED THAT TURNER IS WILLING TO COMPROMISE SAYS JOHN TINKER AN ANALYST WITH FURMAN SELZ INC IN NEW YORK ONE BIG REASON HE SAYS IS THAT NEWS CORP IS EXPLORING SIMILAR NICHES IT HAS ALREADY ESTABLISHED BROADCASTING LINKS IN FRANCE AND SPAIN SUCH VENTURES ARE BECOMING MORE ATTRACTIVE THAN THE PANEUROPEAN NETWORKS MR MURDOCH AND OTHERS TRIED TO ESTABLISH IN THE 1980S SAYS JESSICA J JOSEPHSON PAST PUBLISHER OF A EUROPEAN MEDIABUSINESS NEWSLETTER THE MONEY IN TELEVISION ADVERTISING WAS IN THE LOCAL INDUSTRY PARTLY TO ALLOW ADVERTISERS TO BUY INTO SMALLER REGIONS TURNER HAS BEEN SIGNING ON TO MORE AND MORE SATELLITES FOR INSTANCE THE COMPANY IS EXPECTED TO ANNOUNCE THIS WEEK AN AGREEMENT TO DISTRIBUTE CNN INTERNATIONAL ON A SATELLITE THAT EMBRACES SCANDINAVIAN CABLE MARKETS CUSTOMIZING THE NEWS FOR EACH REGION WILL BE TRICKY THOUGH SUBTITLING IS NOT AN EASY OR AN INEXPENSIVE THING TO DO SAYS PETER VESEY PRESIDENT OF CNN INTERNATIONAL THE NETWORK HAS ALSO CONSIDERED SETTING ASIDE TIME FOR NEWSCASTS FROM LOCAL BROADCASTERS IN VARIOUS REGIONS BUT MR JOHNSON SAYS CNN'S LARGER PUSH IS TO MAKE SURE IT KEEPS GETTING INTERNATIONAL NEWS FIRST HE SAYS THE NETWORK HOPES EVENTUALLY TO BECOME AN INVESTOR IN INTERNATIONAL TELEVISION NEWS LTD A BRITISH CONSORTIUM THAT PROVIDES NEWS VIDEOS FROM DIFFERENT PARTS OF THE WORLD AND CNN WHICH OPENED FOUR INTERNATIONAL NEWS BUREAUS LAST YEAR HAS DRAWN UP PLANS TO OPEN BUREAUS IN SOUTH AFRICA AND MEXICO WITHIN THE YEAR THE NETWORK ALSO HAS HIRED ANCHORS FROM OTHER COUNTRIES AND PLANS TO INTRODUCE MORE INTERNATIONAL GUESTS ON ITS INTERVIEW SHOWS SOME NETWORK OFFICIALS SAY CNN HAS TO BE CAREFUL ABOUT DILUTING ITS AMERICAN CONTENT OVERSEAS LARRY KING LIVE GETS A STRONG RESPONSE OVERSEAS AS DID CNN'S ANALYSES OF THE US PRESIDENTIAL CAMPAIGN AND ITS LIVE COVERAGE OF THE WILLIAM KENNEDY SMITH RAPE TRIAL SAYS ED TURNER THE NETWORK'S VICE PRESIDENT OF NEWS GATHERING THERE IS GLOBAL INTEREST IN AMERICAN CULTURE AND THAT SHOULDN'T BE LOST FROM CNN 9301180037 930118 WHAT'S NEWS BUSINESS AND FINANCE CONSUMER PRICES ROSE ONLY 29 IN 1992 THEIR SMALLEST INCREASE IN SIX YEARS INFLATION WILL LIKELY STAY IN CHECK THIS YEAR BECAUSE OF THE CONTINUING FACTORS OF A WEAK LABOR MARKET IMPROVED PRODUCTIVITY AND A GLOBAL ECONOMIC SLOWDOWN INDUSTRIAL PRODUCTION EDGED UP 03 LAST MONTH IN A BROADBASED GAIN WITH NO KEY BRIGHT SPOTS SEPARATELY CONSUMER CONFIDENCE EASED IN EARLY JANUARY WHILE IN NOVEMBER BUSINESS INVENTORIES INCREASED AND THE TRADE DEFICIT STAYED ABOUT EVEN MANY US EXPORTERS ARE OPTIMISTIC ABOUT THIS YEAR'S PROSPECTS DESPITE THE SLUMPING ECONOMIES OF JAPAN AND EUROPE THESE COMPANIES ARE FINDING GROWING DEMAND ELSEWHERE IN THE FAR EAST AND IN LATIN AMERICA AMERICAN EXPRESS HAS FOUND IN THE CHIEF EXECUTIVE OF A MAJOR CONSUMERPRODUCTS COMPANY A LEADING CANDIDATE TO SUCCEED JAMES ROBINSON III AS CHAIRMAN AND CHIEF EXECUTIVE SUPPORT FOR THE OUTSIDE EXECUTIVE COULD FORCE A SHOWDOWN AMONG BOARD MEMBERS BANKAMERICA IS CLOSE TO SELLING AS MUCH AS 2 BILLION IN BAD REAL ESTATE LOANS AND PROPERTIES THE STRONGEST SIGN YET THAT CAPITAL IS RETURNING TO THE REAL ESTATE MARKET THE BUYER IS SAID TO BE AN INSTITUTIONAL GROUP A REVIEW OF MCDONNELL DOUGLAS CONTRACTS WITH THE AIR FORCE RECOMMENDS THAT SEVERAL DEFENSE DEPARTMENT OFFICIALS BE DISCIPLINED THE PENTAGON REPORT ALSO SAYS THE COMPANY WAS IMPROPERLY PAID 500 MILLION WESTINGHOUSE AND GE SAID THEY ENDED NEGOTIATIONS AIMED AT THE SALE OF MOST OF WESTINGHOUSE'S CREDIT UNIT TO GE'S GENERAL ELECTRIC CAPITAL UNIT INTEL PLANS TO CONSOLIDATE ITS LEADING ROLE IN THE COMPUTER FIELD WITH A BARRAGE OF PRICE CUTS NEW SEMICONDUCTORS AND PLANT INVESTMENTS THAT COULD DOUBLE ITS CHIP CAPACITY TOP SALOMON BROTHERS BOND EXECUTIVE ERIC ROSENFELD SUDDENLY QUIT JARRING THE TRADING COMPANY AND THROWING INTO QUESTION THE FUTURE OF ITS PROFITABLE BOND OPERATIONS TWENTY FORMER ASBESTOS PRODUCERS HAVE REACHED A 1 BILLION PACT WITH TWO PLAINTIFF FIRMS IN AN EFFORT TO SHARPLY SLASH PERSONALINJURY LITIGATION THAT HAS CLOGGED THE COURTS AND CLOUDED THE COMPANIES' FINANCIAL FUTURE BOEING WON A UNITED PARCEL ORDER FOR 30 NEWLY DEVELOPED 767 FREIGHT JETLINERS THE DEAL VALUED AT ABOUT 24 BILLION IS A BLOW TO RIVAL MCDONNELL DOUGLAS'S LANGUISHING MD11 PLANE EURO DISNEY CHAIRMAN ROBERT FITZPATRICK WILL LEAVE APRIL 12 TO BEGIN HIS OWN CONSULTING COMPANY GERBER HEINZ AND RALSTON PURINA FACE ALLEGATIONS THAT THEY CONSPIRED TO FIX BABY FOOD PRICES SINCE THE 1970S TRADE REPRESENTATIVEDESIGNATE KANTOR SAID HE WOULD DISQUALIFY HIMSELF FOR ONE YEAR ON MATTERS DIRECTLY INVOLVING HIS LAW FIRM AND HIS CLIENTS BUT NOT ON BROAD ISSUES WHERE THOSE CLIENTS HAVE A STAKE IN THE OUTCOME OLYMPIA & YORK CREDITORS VOTED TO SEIZE THE COMPANY'S FLAGSHIP CANADIAN OFFICE TOWER IN ONE OF THE FIRST STEPS BY LENDERS TOWARD DISMANTLING THE INSOLVENT REAL ESTATE CONCERN STOCK PRICES CLIMBED AMID THE EXPIRATION OF STOCK INDEX FUTURES AND OPTIONS WITH THE DOW JONES INDUSTRIALS CLIMBING 324 TO 327112 BOND PRICES ROSE AND THE DOLLAR FINISHED HIGHER STOCKS VOLUME 306140000 SHARES DOW JONES INDUSTRIALS 327112 UP 324 TRANSPORTATION 150621 UP 987 UTILITIES 22240 UP 107 BONDS LEHMAN BROTHERS TREASURY INDEX 473584 UP 2226 COMMODITIES OIL 1887 A BARREL UP 17 CENTS DOW JONES FEATURES INDEX 12249 OFF 042 SPOT INDEX 12384 UP 015 DOLLAR 12608 YEN UP 023 16357 MARKS UP 00112 9301180036 930118 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9301180035 930118 TECHNOLOGY BRIEF MYLAN LABORATORIES INC FIRM'S UNIT SIGNS PACT TO BUY EXCLUSIVE LICENSE MYLAN LABORATORIES INC SAID ITS DOW B HICKAM UNIT SIGNED A DEFINITIVE AGREEMENT TO BUY THE EXCLUSIVE LICENSE FOR A WOUND DRESSING DEVELOPED BY POLYMEDICA INDUSTRIES INC WOBURN MASS THE SEMIPERMEABLE DRESSING COULD BE USED FOR BED SORES OR WRAPPING AN INTRAVENOUS TUBE IN PLACE THE CUSHIONY DRESSING IS MORE COMFORTABLE THAN COMPETITORS' PRODUCTS MYLAN IN PITTSBURGH SAID FINANCIAL TERMS WEREN'T DISCLOSED HICKAM WOULD REMAIN THE EXCLUSIVE LICENSEE UNTIL DEC 31 2002 INCLUDING ANY MODIFICATIONS HICKAM BASED IN SUGARLAND TEXAS MAKES WOUND DRESSINGS FOR HOSPITALS AND NURSING HOMES POLYMEDICA IS A PRIVATELY HELD RESEARCH FIRM 9301180034 930118 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TO OVERCOME ENERGY SHORTAGES RUSSIA IS PUSHING AHEAD WITH PLANS TO OPEN THREE NUCLEAR REACTORS THIS YEAR AND BUILD AN ADDITIONAL 23 BY THE YEAR 2010 THE MOVE RESUMES AN AMBITIOUS POWER PROGRAM SUSPENDED AFTER THE 1986 CHERNOBYL DISASTER IN THE FORMER SOVIET UNION RUSSIA HAS NINE NUCLEAR PLANTS WITH 28 REACTORS THE PLAN WOULD APPROXIMATELY DOUBLE THE NUMBER OF OPERATING REACTORS AS SOME OLDER ONES ARE CLOSED THE DECISION CONDEMNED BY ENVIRONMENTALISTS FOLLOWED AN OFFICIAL REPORT THAT 205 MINOR INCIDENTS OCCURRED AT NUCLEAR SITES LAST YEAR UP 19 FROM 1991 NEW REACTORS TO BE STARTED THIS YEAR ARE THE BALAKOVO POWER STATION NEAR THE SOUTHERN CITY OF SARATOV KALININ NEAR TVER IN THE NORTH AND KURSK IN CENTRAL RUSSIA ALL REGIONS WITH SEVERE ENERGY SHORTAGES THE KURSK REACTOR IS SIMILAR TO THAT AT UKRAINE'S CHERNOBYL PLANT STARTUP COSTS FOR THE THREE REACTORS WERE ESTIMATED AT 746 MILLION BUT INFLATION PROBABLY WILL BOOST THAT SUM A SWISS GOVERNMENT PROPOSAL TO RAISE THE GASOLINE TAX WILL BE PUT TO A NATIONWIDE VOTE ON MARCH 7 THE REFERENDUM WAS TRIGGERED WHEN OPPONENTS OF THE 20 INCREASE IN THE PUMP PRICE GATHERED TWICE AS MANY SIGNATURES AS NEEDED UNDER SWITZERLAND'S DIRECTDEMOCRACY RULES GAS SELLS FOR ABOUT 1 SWISS FRANC 67 US CENTS A LITER THE 20CENTIME INCREASE WOULD HELP COVER THE SWISS BUDGET DEFICIT REFERENDUM BACKERS INCLUDING MOTORIST AND TRUCKER GROUPS AND TWO POPULIST POLITICAL PARTIES SAY MOTORISTS ARE BEING UNFAIRLY SINGLED OUT TO FOOT THE FEDERAL BILL SOUTH KOREAN COMPANIES LAST YEAR IMPORTED 1902 CARS A 49 JUMP FROM A YEAR EARLIER THEY CITED LOWER TARIFFS AND A LETUP FROM THE FRUGALITY CAMPAIGN THAT SWEPT THE NATION IN 1991 AND DAMPED DEMAND FOR EXPENSIVE FOREIGN CARS AUTOS FROM THE US ACCOUNTED FOR 61 OF THE TOTAL FOLLOWED BY IMPORTS FROM GERMANY AND SWEDEN FORD MOTOR CO'S MERCURY SABLE WAS THE MOST POPULAR FOREIGN MODEL FOR THE SECOND YEAR IN A ROW INFLATION IN ISRAEL LAST YEAR SHRANK TO A 23YEAR LOW THE 94 RATE COMPARES WITH AN 18 RISE IN CONSUMER PRICES IN 1991 AND MARKS THE SLOWEST PACE SINCE 39 IN 1969 THOUGH LABOR UNION OFFICIALS PRAISED LAST YEAR'S LOW RATE THEY SAID IT HELPED PUSH ISRAEL'S UNEMPLOYMENT RATE ABOVE 10 JOBLESSNESS HAS RISEN IN THE COUNTRY WITH THE INFLUX OF MORE THAN 400000 JEWS FROM THE FORMER SOVIET UNION SINCE 1989 THOUSANDS OF WORKERS IN PORTUGAL'S PUBLIC SECTOR STAGED A ONEDAY STRIKE TO PROTEST GOVERNMENT WAGE PROPOSALS AND SWEEPING SPENDING CUTBACKS THE WALKOUT FRIDAY AFFECTING SERVICES RANGING FROM HOSPITALS TO SCHOOLS CULMINATED A WEEKLONG PROTEST WHEN EMPLOYEES WORE BLACK TIES TO WORK UNIONS SAY THE GOVERNMENT'S OFFER OF 1993 SALARY INCREASES AMOUNTS TO 3 WHILE INFLATION IS EXPECTED TO RUN BETWEEN 5 AND 7 THE UNIONS WANT A 12 BOOST TO BRING PAY INTO LINE WITH OTHER EUROPEAN COMMUNITY MEMBERS EXECUTIVES SURVEYED AT 100 SOUTH AFRICAN INDUSTRIAL COMPANIES EXPECT A CONTINUATION OF LOW ECONOMIC GROWTH AND HIGH INFLATION AND UNEMPLOYMENT THIS YEAR ABOUT 8 IN 10 SEE CONSUMER PRICES RISING BETWEEN 122 AND 14 UP FROM AN 11 RATE LAST YEAR THEY ALSO FORECAST 05 GROWTH IN GROSS DOMESTIC PRODUCT AFTER AN ESTIMATED 15 DROP LAST YEAR IN THE UNIVERSITY OF SOUTH AFRICA'S BUREAU OF MARKET RESEARCH SURVEY A THIRD OF THE RESPONDENTS EXPECT BUSINESS CONFIDENCE TO IMPROVE MARKING AN EROSION FROM 54 WHO WERE OPTIMISTIC IN LAST YEAR'S POLL ITALY'S CABINET APPROVED INCENTIVES FOR STOCK MARKET INVESTORS AND SENT THE PACKAGE TO PARLIAMENT INITIAL MARKET REACTION WAS ENTHUSIASTIC BUT ANALYSTS WERE CAUTIOUSLY OPTIMISTIC AS LEGISLATORS MAY END UP ALTERING THE PROVISIONS ONE MEASURE WOULD GIVE TAX BREAKS TO MAJORITY SHAREHOLDERS WHO GIVE UP CONTROL AND PLACE AT LEAST 51 OF THEIR COMPANIES' CAPITAL ON THE STOCK MARKET THIS IS AIMED AT REVITALIZING THE MARKET BY ATTRACTING ITALY'S ARMY OF PROFITABLE PRIVATE FIRMS ANOTHER WOULD AWARD INVESTORS CAPITALGAINS RELIEF IF THEY HOLD SHARES FOR AT LEAST THREE YEARS THE GAINS TAX WOULD BE WAIVED IN SOME PUBLIC OFFERINGS THE INCENTIVES ALSO ARE INTENDED TO STRENGTHEN THE BOURSE AND ENABLE IT TO ABSORB ENTERPRISES IN ITALY'S THREEYEAR 28TRILLIONLIRA 1862 BILLION PRIVATIZATION PROGRAM AS PART OF A PUSH TO LURE SMALL INVESTORS TO SHIFT TO EQUITIES FROM HIGHYIELDING GOVERNMENT SECURITIES GOVERNMENT BONDS COULD BE SWAPPED FOR SHARES OF STATE CONCERNS BEING SOLD OFF TOURIST ARRIVALS IN NEW ZEALAND WHICH HAS A POPULATION OF 34 MILLION ROSE 78 TO 104 MILLION IN THE YEAR ENDED NOV 30 COMPARED WITH A YEAR EARLIER THE NUMBER OF FOREIGN VISITORS HAS DOUBLED IN THE PAST DECADE INFLATION IN HUNGARY CLIMBED AT A 23 RATE LAST YEAR LED BY A 28 AVERAGE INCREASE IN FOOD PRICES CUBA WHICH HAD LIMITED EACH HAVANA RESIDENT TO ONE BAR OF SOAP A MONTH HAS RUN SHORT OF PRODUCTION MATERIALS AND TEMPORARILY ALLOWED THE RATION ONLY FOR CHILDREN YOUNGER THAN TWO AS THEIR DIAPERS AND CLOTHES NEED FREQUENT WASHING DETERGENT ALSO RATIONED IS IN SHORT SUPPLY TOO 9301180033 930118 ARSON AND OTHER INSURANCE FRAUD FLARE UP IN RECESSIONARY EUROPE BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS JAI CHUGH A SMALL BUSINESSMAN IN BRITAIN NEEDED TO LIQUIDATE HIS ASSETS IN 1991 SO HE ARRANGED FOR TWO ACCOMPLICES TO BURN DOWN HIS EAST LONDON TANDOORI RESTAURANT CHANTAL TARDY A FRENCH DISCOTHEQUE OWNER AND HER ASSOCIATE JOSE LOPEZ ALSO HAD CASHFLOW PROBLEMS WHEN THEY TORCHED THEIR NIGHTCLUB LE VILLAGE TWICE IN 1990 WHILE ALL WENT TO PRISON EUROPEAN INSURERS FEAR SUCH CASES MIGHT PROVE TRAILBLAZERS FOR OTHERS IN DESPERATE ECONOMIC STRAITS IN BRITAIN INSURERS HAVE BEEN ALARMED BY A SURGE IN FRAUD NOTABLY ON INDUSTRIAL FIRE AND AUTOMOBILE POLICIES SINCE THE RECESSION HIT IN 1990 ARSON INVESTIGATORS SAY THEY HAVE SEEN A SHARP INCREASE IN NUMBERS OF SMALL SHOPS FACTORIES AND WAREHOUSES THAT BURN FOR MYSTERIOUS REASONS THERE HAS ALSO BEEN A SURGE IN FRAUD BY HARDUP INDIVIDUALS FILING BOGUS CLAIMS FOR ANYTHING FROM STOLEN CARS TO BROKEN VIDEOCASETTE RECORDERS OR ROOF REPAIRS THE ASSOCIATION OF BRITISH INSURERS RECKONS THAT FRAUD ACCOUNTED FOR AT LEAST 400 MILLION 616 MILLION OF THE TOTAL OF 14 BILLION 216 BILLION PAID IN INSURANCE CLAIMS IN THE UK IN 1991 MEANWHILE ARSON WHICH INCLUDES ALL FIRES CAUSED DELIBERATELY WHETHER FOR INSURANCE FRAUD VANDALISM OR REVENGE ACCOUNTED FOR 450 MILLION OR 44 OF TOTAL FIREDAMAGE CLAIMS IN FRANCE INSURERS ESTIMATE THAT DOUBTFUL FIRES IN WHICH ARSON MIGHT NOT HAVE BEEN PROVED BUT WHICH LEFT INSURERS AND INVESTIGATORS SUSPICIOUS ACCOUNTED FOR ALMOST 20 OF THE 57 BILLION FRENCH FRANCS ABOUT 1 BILLION PAID OUT IN MAJOR COMMERCIAL FIRE CLAIMS IN 1991 SINCE THAT FIGURE DOESN'T INCLUDE CLAIMS FOR LESS THAN FIVE MILLION FRANCS INSURERS WARN IT MAY WELL UNDERESTIMATE THE PROBLEM IN GERMANY FIRE CLAIMS ROSE 50 IN 1991 TO SIX BILLION MARKS 37 BILLION THERE IS NO ACCURATE ESTIMATE OF HOW MUCH OF THIS DAMAGE WAS SELFINFLICTED BUT OBSERVES HERBERT GEIGER OF THE ASSOCIATION OF GERMAN INSURANCE COMPANIES WHEN YOU HAVE A RECESSION THE NUMBER OF FIRES INCREASES THE MOST SIGNIFICANT PROBLEM WITH INSURANCE FRAUD MR GEIGER ADDS TENDS TO LIE NOT IN SPECTACULAR FACTORY FIRES BUT RATHER IN THE STEADY STREAM OF INFLATED CLAIMS WHICH ALREADY COST GERMAN INSURERS SOMEWHERE BETWEEN TWO BILLION AND FIVE BILLION MARKS A YEAR ACCORDING TO THE ITALIAN INSURANCE ASSOCIATION AN ESTIMATED 14 OF ALL AUTO INSURANCE CLAIMS FILED IN 1991 IN SOUTHERN ITALY AND 16 OF ALL THEFT CLAIMS THERE WERE BOGUS IN SOME TOWNS THE FIGURE IS AS HIGH AS 45 FRAUD INSPECTORS ACROSS EUROPE SAY THEY LEARN PRETTY QUICKLY WHAT TO LOOK FOR BEACH RESTAURANTS THAT BURST INTO FLAMES LATE ONE NIGHT AT THE END OF THE SUMMER OR ENTIRE COLLECTIONS OF READYTOWEAR CLOTHES THAT ARE REPORTED STOLEN OR BURNED JUST AFTER GOING OUT OF STYLE HOTELS AND RESTAURANTS WHICH NEED FREQUENT RENOVATIONS TO KEEP UP WITH FASHION AND SECURITY OR HEALTH REQUIREMENTS ARE ALSO FREQUENT TARGETS GEORGES CARROT A FORMER POLICEMAN WHO HEADS FRANCE'S INSURANCE FRAUD AGENCY SAYS HIS COLLEAGUES ARE EXPECTING A FLAREUP IN ARSON AT FRENCH HOSTELS AND BOARDING HOUSES BECAUSE A NEW RATING SYSTEM IS ABOUT TO COME INTO EFFECT FORCING CASHSTRAPPED HOSTEL OWNERS TO RESORT TO INFLAMMATORY MANAGEMENT TECHNIQUES TO RAISE CASH TO MEET THE NEW STANDARDS SIMILARLY SOME INSURERS EXPECT MORE FARM BUILDINGS TO GO UP IN SMOKE ONCE THE EUROPEAN COMMUNITY'S AGRICULTURAL REFORMS COME INTO EFFECT THE EC PLANS REQUIRE TAKING TRACTS OF LAND OUT OF PRODUCTION MEANING THERE WILL BE LESS USE FOR SOME BARNS AND OTHER FARM BUILDINGS DOMINIQUE FOUCHARD WHO TRACKS SPECIAL RISKS FOR GROUPE AXA SAYS HIS COMPANY EXPECTS THE EC REFORMS TO ADD FIVE POINTS TO ITS CLAIMSTOPREMIUMS RATIO FOR FARMS INSURANCE FRAUD IS NOTHING NEW OF COURSE BUT UNTIL NOW FEW EUROPEAN INSURERS SOUGHT TO TACKLE THE PROBLEM HEADON PREFERRING TO PAY OUT ON ANY BUT THE MOST BLATANT CASES OF FRAUD MOSTLY FOR THE SAKE OF REPUTATION THE ATTITUDE IS CHANGING THOUGH CONTINENTAL INSURERS ARE WAKING UP TO HOW THEY MUST TACKLE FRAUD MORE AGGRESSIVELY THE PROBLEM WAS ON THE AGENDA AT TWO INTERNATIONAL INSURANCE CONVENTIONS IN PARIS IN DECEMBER AND THERE ARE SIGNS THAT COMPANIES ARE FINALLY OVERCOMING THE SECRETIVE INSTINCTS THAT PREVENT THEM FROM SWAPPING NOTES ON PROSPECTIVE RISKS WITH OTHER INSURERS IN BELGIUM PIERRE BONNET AT CIE BELGE D'ASSURANCES GENERALES SAYS HE REALIZED EARLY LAST YEAR THAT HIS CONCERN WAS FACING AN INORDINATELY LARGE NUMBER OF CLAIMS FROM EASTERN BELGIUM FOR REAREND COLLISIONS INVOLVING BMWS MERCEDESBENZES AND OTHER LARGE EXPENSIVE CARS REGISTERED IN GERMANY MR BONNET SAYS THAT BY COOPERATING BELGIAN INSURANCE COMPANIES WERE ABLE TO UNCOVER AND STOP A SYSTEMATIC CROSSBORDER RACKET OF PETTY FRAUD BASED ON MULTIPLE CLAIMS FOR DELIBERATE AUTOMOBILE ACCIDENTS BOB SCOTT THE HEAD OF GENERAL ACCIDENT'S UK OPERATIONS TELLS HOW ONE OF HIS COMPANY'S CLAIMS OFFICERS RECENTLY CAUGHT A WOMAN IN SOUTHERN ENGLAND WHEN SHE FILED A CLAIM FOR A WRECKED RANGE ROVER THE WARY CLAIMS OFFICER ALERTED BY HER INSISTENCE ON A FAST CASH SETTLEMENT LOOKED AT THE CLAIM MORE CLOSELY AND DISCOVERED THAT THE WOMAN HAD HASTILY SUBSCRIBED TO THE POLICY AFTER CRASHING THE CAR IN 1990 THAT CLAIM WOULD HAVE BEEN SETTLED MR SCOTT SAYS WE'VE REFUSED TO PAY AND SHE'LL BE PROSECUTED INSURANCE FRAUD IS SECOND ONLY TO TAX FRAUD AS A SOCIALLY ACCEPTABLE CRIME SAYS ROBERT WILSON THE HEAD OF NORWICH UNION'S CLAIMS INVESTIGATING UNIT IN THE UK NORWICH UNION IS A FAVORITE TARGET BECAUSE IT HAS A SPECIAL CLASSICCAR INSURANCE POLICY WHICH COVERS VINTAGE CARS AT A MUTUALLY AGREED PRICE IRRESPECTIVE OF MARKET VALUES THE SYSTEM BACKFIRED SERIOUSLY ON NORWICH UNION WHEN THE PRICES OF OLD ASTON MARTINS AND JAGUARS COLLAPSED IN 1990 AND 1991 SUDDENLY THE OWNERS FOUND THEMSELVES SITTING IN CARS COVERED BY POLICIES WORTH TWICE WHAT THE CAR WOULD FETCH IN A SALE NOT SURPRISINGLY NORWICH UNION WITNESSED AN EXPLOSION IN THE NUMBER OF REPORTED THEFTS OF CLASSIC CARS AS UNSCRUPULOUS OR DESPERATE POLICY HOLDERS LIQUIDATED ASSETS BETWEEN 1989 AND 1991 THE NUMBER OF CLAIMS MORE THAN DOUBLED WHILE THE CLAIMS RATIO A MEASURE OF MONEY PAID OUT COMPARED WITH PREMIUMS QUADRUPLED SAYS MR WILSON LATE IN 1991 THE 27YEAROLD OWNER OF A SLEEK 1958 XK150 REPORTED HIS CAR STOLEN AND FILED A CLAIM ON THE 48000 POUND INSURANCE POLICY MEANWHILE HE SHIPPED THE ROADSTER ACROSS THE CHANNEL AND SOLD IT TO A CLASSIC CAR DEALER IN FRANCE BUT LAST YEAR ACTING ON A TIP FRENCH POLICE ARRESTED THE MAN AND AN ACCOMPLICE AS THEY DELIVERED THE ALLTOOCONSPICUOUS CAR STILL WITH ITS UK PLATES TO THE DEALER THEY WERE BROUGHT BACK TO ENGLAND AND PUT ON TRIAL WHERE THEY WERE SENTENCED TO 80 HOURS OF COMMUNITY SERVICE 9301180032 930118 FLEET AEROSPACE GETS EXTENSION TORONTO FLEET AEROSPACE CORP SAID IT RECEIVED A THREEYEAR CONTRACT EXTENSION VALUED AT 563 MILLION CANADIAN DOLLARS US44 MILLION FROM THE DE HAVILLAND INC SUBSIDIARY OF MONTREALBASED BOMBARDIER INC THE AEROSPACE COMPANY SAID THE CONTRACT TO MAKE WING AND FUSELAGE PARTS FOR DE HAVILLAND'S DASH 8 AIRCRAFT HAS AN OPTION FOR A FOURTH YEAR WHICH WOULD RAISE ITS VALUE TO ABOUT C75 MILLION 9301180031 930118 BUSINESS BRIEF BANGKOK BANK LTD THAI BANK EXPECTS PROFIT TO RISE 19 DURING 1993 BANGKOK BANK LTD THAILAND'S LARGEST COMMERCIAL BANK SAID IT EXPECTS PROFIT TO RISE 19 TO 125 BILLION BAHT 490 MILLION THIS YEAR FROM 105 BILLION BAHT IN 1992 PRESIDENT VICHIT SURAPHONGCHAI SAID AN EXPECTED 20 RISE IN LENDING AND 16 INCREASE IN DEPOSITS THIS YEAR WILL FUEL THE GAINS IN PROFIT MR VICHIT SAID PRETAX PROFIT ROSE 49 TO 162 BILLION BAHT IN 1992 FROM 109 BILLION BAHT THE YEAR BEFORE THE BANK SAID 128 BILLION BAHT IN PRETAX PROFIT CAME FROM FOREIGN OPERATIONS THE BANK'S NET INCOME WAS UP 45 TO 105 BILLION BAHT IN 1992 FROM 725 BILLION BAHT IN 1991 ASSETS TOTALED 666 BILLION BAHT AT THE END OF 1992 UP 12 FROM 5958 BILLION BAHT THE PREVIOUS YEAR 9301180030 930118 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BELLSOUTH TELECOMMUNICATIONS INC 425 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO THE FIRST PART IS 275 MILLION OF 6 1/2 NOTES DUE FEB 1 2000 PRICED AT 99667 TO YIELD 656 OR 32 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE THE SECOND PART IS 150 MILLION OF 7 NOTES DUE FEB 1 2005 PRICED AT 99679 TO YIELD 704 OR 45 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE BOTH PARTS ARE NONCALLABLE AND RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP BELLSOUTH TELECOMMUNICATIONS IS A UNIT OF BELLSOUTH CORP KROGER CO 200 MILLION ISSUE OF SENIOR SECURED DEBENTURES DUE JAN 1 2005 PRICED AT PAR TO YIELD 925 THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC THE ISSUE IS RATED BA2 BY MOODY'S AND DOUBLEBMINUS BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 175 MILLION OF MEDIUMTERM NOTES DUE JAN 25 1996 PRICED AT PAR TO YIELD 495 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT 14 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 339 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199315 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 760 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199314 IS BACKED BY FANNIE MAE 15YEAR 9 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 960 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 12 YEARS THE ISSUE SETTLES FEB 26 FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF REMIC SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES GOLD 1469 IS BACKED BY FREDDIE MAC GOLD 6 1/2 SEVENYEAR BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 720 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 683 YEARS LKB FINANCE GERMANY ONE BILLION MARKS OF 7 EUROBONDS DUE FEB 9 1998 PRICED AT 10190 VIA DRESDNER BANK AG REOFFERED AT 10015 TO YIELD 696 ANNUALLY 18 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTEED BY LANDESKREDITBANK BADENWUERTTEMBERG RATED TRIPLEA BY MOODY'S AND S&P FEES 2 AEROSPATIALE FRANCE ONE BILLION FRENCH FRANCS OF 8 3/8 EUROBONDS DUE FEB 10 2003 PRICED AT 10090 VIA CREDIT LYONNAIS REOFFERED AT 9925 TO YIELD 849 ANNUALLY 58 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT ISSUE FEES 2 INTERNATIONAL FINANCE CORP SUPRANATIONAL 250 MILLION CANADIAN DOLLARS OF 7 3/4 EUROBONDS DUE AUG 18 1998 PRICED AT 101258 VIA SCOTIA MCLEOD INC REOFFERED AT 99633 TO YIELD 38 BASIS POINTS ABOVE THE CANADIAN 6 1/4 GOVERNMENT SECURITIES OF 1998 FEES 1 7/8 PETROLEOS MEXICANOS MEXICO 125 MILLION OF 8 1/4 EUROBONDS DUE FEB 4 1998 PRICED AT 100685 VIA SWISS BANK CORP REOFFERED AT 9981 TO YIELD 830 OR 230 BASIS POINTS ABOVE THE COMPARABLE US TREASURY NOTE ABBEY NATIONAL STERLING CAPITAL PLC UK 150 MILLION OF 10 1/8 SUBORDINATED EUROBONDS DUE JAN 4 2023 PRICED AT 101365 VIA BARING BROTHERS & CO REOFFERED AT 9949 TO YIELD 939 SEMIANNUALLY 100 BASIS POINTS ABOVE THE 8 3/4 GILT DUE IN 2017 GUARANTEED BY ABBEY NATIONAL PLC CALLABLE AT PAR IN 2018 IF NOT CALLED THE COUPON IS STEPPED UP ACCORDING TO A FORMULA FEES 2 1/2 DEUTSCHE SIEDLUNGS & LANDESRENTENBANK GERMANY 125 MILLION OF 7 3/4 EUROBONDS DUE AUG 12 1998 PRICED AT 101445 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 9982 OR 50 BASIS POINTS ABOVE THE 7 1/4 GILT DUE IN 1998 FEES 1 7/8 SOCIETE GENERALE AUSTRALIA LTD FRENCH PARENT 75 MILLION AUSTRALIAN DOLLARS OF 8 1/4 EUROBONDS DUE MARCH 12 1997 PRICED AT 10075 VIA HAMBROS BANK LTD YIELD 856 ANNUALLY AFTER 1 3/4 POINTS FEES FINANCE FOR DANISH INDUSTRY AGENCY 300 MILLION DANISH KRONER OF 9 1/4 EUROBONDS DUE FEB 23 1998 PRICED AT 102 TO YIELD 951 AFTER FEES VIA UNIBANK AS FEES 1 7/8 9301180029 930118 OTC FOCUS TECH SHARES DOWNGRADED BY ANALYSTS AS BIG NASDAQ RALLY CONTINUES MANAGERS ARE URGING CAUTION BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE MIDST OF A BIG TECHNOLOGYSTOCK RALLY ANALYSTS ARE URGING CAUTION AND DOWNGRADING SOME OF THE STAR PERFORMERS EVEN AS BUYERS ARE STILL COMING IN DROVES UP TO NOW IT HAS BEEN EASY MONEY IF YOU BOUGHT INTEL A WEEK AGO FOR 102 3/8 YOU'RE UP 9 IF YOU BOUGHT TWO WEEKS AGO YOU'RE AHEAD 29 THE STOCK FELL 1 POINT FRIDAY TO 111 3/4 ASTOUNDING GAINS BY THE GIANT SEMICONDUCTOR COMPANY AND A HOST OF OTHER LARGE COMPUTERRELATED STOCKS HAVE HELPED PROPEL THE NASDAQ COMPOSITE INDEX 206 HIGHER SINCE THE BEGINNING OF OCTOBER THE INDEX ADDED 145 TO 69715 FRIDAY BUT NOW SOME BIG TECHNOLOGY STOCKS ARE COMING UNDER INCREASING PRESSURE AS SKEPTICS SAY THE STOCKS HAVE CLIMBED TOO FAR TOO FAST ON FRIDAY A RIPPLE OF PROFITTAKING AND ANALYST DOWNGRADING SANK APPLE COMPUTER 4 3/4 TO 60 1/4 MABON SECURITIES CUT ITS INVESTMENT RATING TO HOLD FROM BUY MICROSOFT SLIPPED 1 1/2 TO 89 3/4 SHEARSON LEHMAN BROTHERS LOWERED ITS RATING ON THE STOCK TO OUTPERFORM FROM BUY AND PARED ITS FISCAL 1993 EARNINGS ESTIMATE TO 311 A SHARE FROM 330 A SHARE THE FISCAL YEAR RUNS THROUGH JUNE ALEX BROWN & SONS AND DONALDSON LUFKIN & JENRETTE ALSO SLIGHTLY LOWERED THEIR EXPECTATIONS FOR MICROSOFT BUT ONE ANALYST HAD TO BOOST HIS ESTIMATE TO WIND UP IN THE SAME BALLPARK AS OTHER ANALYSTS GOLDMAN SACHS & CO TECHNOLOGY ANALYST RICK SHERLUND BOOSTED HIS FISCAL 1993 EARNINGS PROJECTION FRIDAY TO A RANGE OF 310 TO 315 A SHARE FROM HIS EARLIER 305ASHARE ESTIMATE ANALYSTS AND PROJECTIONS ASIDE THERE ARE COMPELLING ARGUMENTS FOR BOTH SELLING AND BUYING TECHNOLOGY STOCKS AT THESE LEVELS ROBERT CZEPIEL PORTFOLIO MANAGER OF ROBERTSON STEPHENS EMERGING GROWTH FUND SAYS HE HAS LOWERED HIS POSITION IN TECHNOLOGY STOCKS TO 29 OF HIS PORTFOLIO FROM A PEAK OF 38 REGISTERED DEC 31 HE IS MOVING INTO BIOTECHNOLOGY AND SPECIALTY SERVICE COMPANIES INCLUDING A CHECKCASHING OPERATION AS WELL AS CELLULARPHONE STOCKS IN EARLIER YEARS SOME ANALYSTS HAVE ADVISED TECHNOLOGYSTOCK INVESTORS TO SELL IN MAY AND GO AWAY BUT INVESTORS MIGHT NOT WANT TO WAIT SO LONG IN 1993 THERE IS A VERY DISTINCT SEASONALITY WITH TECHNOLOGY THESE STOCKS BOTTOMED IN EARLY JULY AND THEY HAVE NOW BEEN RUNNING FOR ABOUT SIX MONTHS MR CZEPIEL SAYS THIS TIME AROUND THE SAYING MIGHT GO BUY ON HALLOWEEN AND SELL ON APRIL FOOL'S DAY' MR CZEPIEL SAYS OR IT MIGHT BE WISE TO SELL EVEN SOONER THIS YEAR WE HAD THE JANUARY EFFECT IN DECEMBEREVERYTHING IS EARLIER MR CZEPIEL SAYS THE INITIAL PUBLIC OFFERING CALENDAR IS FLOODED FOR THIS WEEK AND NEXT WHICH COULD PROVIDE THE FINAL BLOW TO THE MARKET'S TECHNOMANIA THE NEXT MARKET HOT SPOT MR CZEPIEL SAID HE IS EXPECTING AND BUYING FOR IS BIOTECHNOLOGY AND SPECIALTY SERVICE STOCKS ALTHOUGH INTEL'S BETTERTHANEXPECTED EARNINGS LAST WEEK BROUGHT BUYERS IN DROVES TO THE TECH STOCKS MR CZEPIEL SAYS THERE ARE SEVERAL SMALLER ISSUES SUCH AS THOSE IN COMPUTER NETWORKING THAT AREN'T DOING SO WELL WELLFLEET COMMUNICATIONS TUMBLED 3 3/4 TO 41 3/4 ALTHOUGH EARNINGS OF THE BEDFORD MASS NETWORKING COMPANY SOARED TO 19 CENTS A SHARE IN ITS SECOND QUARTER ENDED DEC 31 FROM 12 CENTS A YEAR EARLIER LAST MONDAY IMRS PLUNGED 22 TO 19 FROM 24 1/2 AFTER SAYING THAT FISCAL SECONDQUARTER EARNINGS OF AROUND 18 CENTS A SHARE WOULD DISAPPOINT INVESTORS THE STOCK CLOSED UNCHANGED FRIDAY AT 17 1/2 MONEY MANAGERS ARE CAUTIOUSLY STARTING TO SELL SOME OF THEIR TECHNOLOGY STOCKS THE GROUP IS GETTING SOMEWHAT TOO EXPENSIVE AND I'M VERY SLOWLY BUILDING MY CASH POSITION SAYS PETER ANASTOS A SENIOR VICE PRESIDENT WITH ALLIANCE CAPITAL MANAGEMENT IN NEW YORK ALL WE REALLY HAVE IS PSYCHOLOGY WHENEVER YOU GET THE FINAL STAGE OF A BLOWOFF THE STOCKS GO UP THE MOST IN THE SHORTEST PERIOD OF TIME AND THE ALARM CLOCK IS RINGING HE SAYS BUT THE BULLS AREN'T BACKING DOWN FROM A TRADING STANDPOINT IT IS VERY TEMPTING TO GET OUT WITH SOME PROFITS TECHNOLOGY STOCKS ARE UP 20 FROM THEIR BOTTOM IN AUGUST AND A LOT OF STOCKS HAVE HAD 50 RUNS SAYS LAWRENCE BOWMAN MANAGER OF THE FIDELITY EMERGING GROWTH FUND HOWEVER HE SAYS I THINK THE PEOPLE WHO ARE SAYING NOW IS THE TIME TO GET OUT ARE GOING TO END UP BUYING BACK AT HIGHER PRICES ESPECIALLY ON INTEL MR BOWMAN IS BULLISH HE BOUGHT 100000 MORE SHARES WEDNESDAY WHY SO UNAFRAID MR BOWMAN SAYS INTEL'S EARNINGS COULD GROW 50 IN 1993 TO HIS ESTIMATE OF 750 A SHARE THAT'S ON THE LOW SIDE OF ANALYSTS' RECENTLY BOOSTED ESTIMATES AND COULD RISE 30 THE FOLLOWING YEAR THE STOCK NOW IS TRADING AT 15 TIMES HIS 1993 ESTIMATE OR LESS THAN A THIRD OF HIS PROJECTED 50 GROWTH RATE INTEL COULD BE A 200 STOCK A YEAR FROM NOW AND IT IS ONE OF THE MOST COMPETITIVE STOCKS OUT THERE HE SAYS WHERE ELSE CAN I GET THAT KIND OF GROWTH JOHN TAUER PORTFOLIO MANAGER OF THE EMERGING GROWTH FUND OF PIPER CAPITAL MANAGEMENT IN MINNEAPOLIS SAYS TECHNOLOGY STOCKS WILL BE THE FIRST TO BENEFIT FROM ANY ECONOMIC UPTURN HIS PORTFOLIO NOW IS 17 IN COMPUTERRELATED HOLDINGS WHICH HE SAYS IS OVERWEIGHTED IN THAT AREA COMPARED WITH AN AVERAGE 11 WEIGHTING FOR TECHNOLOGY IN THE OVERALL MARKET I'M NOT CUTTING BACK IN TECHNOLOGY IN FACT IT IS THE OPPOSITE WE'VE BEEN ADDING MR TAUER SAYS IT LOOKS LIKE SOME OF THESE COMPANIES ARE SHOWING AWFULLY GOOD NUMBERS AND WE ANTICIPATE MORE GOOD NUMBERS THIS QUARTER OF COURSE FIDELITY'S MR BOWMAN RECOGNIZES THAT WITHIN THE TECHNOLOGY SECTOR THERE ARE DIFFERENT CYCLES RIGHT NOW SEMICONDUCTOR STOCKS ARE FLYING HIGH BUT DISKDRIVE STOCKS ARE COMING OFF A YEARANDAHALF RALLY WITNESS SEAGATE TECHNOLOGY WHICH AT 17 1/8 HAS FALLEN NEARLY 20 IN A WEEK THERE IS A RISK IN GETTING OUT TOO EARLY MR BOWMAN SAYS MANY OF THESE STOCKS ARE NOT TOO EXPENSIVE YOU HAVE TO BUY THE COMPANIES WITH THE STRONGEST PRODUCTS AND THE RIGHT PRODUCT CYCLE 9301180028 930118 IMCERA SAYS PROFIT FROM OPERATIONS ROSE IN 2ND PERIOD BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL IMCERA GROUP INC CITING CONTINUED STRONG GROWTH IN ITS MEDICAL PRODUCTS DIVISION SAID IT EXPECTS TO REPORT A 12 GAIN IN OPERATING EARNINGS TO 37 CENTS A SHARE OR AN INDICATED 287 MILLION FROM 33 CENTS A SHARE OR 257 MILLION FOR ITS SECOND QUARTER WHICH ENDED DEC 31 THE NORTHBROOK ILL SPECIALTY CHEMICAL AND HEALTH PRODUCTS COMPANY SAID ITS SECONDQUARTER SALES ROSE ABOUT 5 TO 440 MILLION THE COMPANY EXPECTS TO REPORT SECONDQUARTER RESULTS TOMORROW RAY HOLMAN IMCERA'S CHIEF EXECUTIVE SAID IN AN INTERVIEW THAT THE 12 OPERATING EARNINGS GAIN WAS IN LINE WITH THE COMPANY'S MIDDECEMBER PROJECTIONS FOR FISCAL 1993 OPERATING EARNINGS GAINS OF PLUS OR MINUS 15 UNTIL THAT TIME IMCERA HAD BEEN PROJECTING 1993 OPERATING EARNINGS GROWTH OF 20 THE REDUCED DECEMBER FORECAST WAS ISSUED AT THE SAME TIME COMPANY DIRECTORS LED BY CHAIRMAN GEORGE D KENNEDY FORCED OUT FORMER CHIEF EXECUTIVE M BLAKEMAN INGLE CITING DECLINING EARNINGS AT THE COMPANY'S PITMANMOORE ANIMAL HEALTH PRODUCTS UNIT MR HOLMAN PREVIOUSLY HEAD OF IMCERA'S MALLINCKRODT MEDICAL PRODUCTS DIVISION IN ST LOUIS WAS NAMED TO SUCCEED MR INGLE IMCERA SAID THE PITMANMOORE UNIT IS THE FOCUS OF A TOPTOBOTTOM REEVALUATION THAT THE COMPANY WILL EXPLAIN AT A MEETING OF DIVISION MANAGERS IN CHICAGO TODAY AND TOMORROW THERE IS BAD NEWS IN EVERY COMPANY AND WITH US IT'S PITMANMOORE MR HOLMAN SAID PITMANMOORE'S SECONDQUARTER EARNINGS SKIDDED ABOUT 30 TO 11 MILLION FROM 16 MILLION A YEAR EARLIER MR HOLMAN SAID WHILE SALES WERE ABOUT FLAT MR HOLMAN WOULDN'T COMMENT ON DETAILS OF THE PITMANMOORE REVIEW BUT HE INDICATED THAT A STREAMLINING MAY BE IN ORDER THAT COULD INCLUDE TRIMMING BUSINESS LINES PLANTS RESEARCH PROJECTS AND EMPLOYEES THE EXECUTIVE SAID HE HOPES TO HAVE A BUSINESS PLAN FULLY IMPLEMENTED AT PITMANMOORE BY THE END OF JUNE WHICH IS THE END OF IMCERA'S FISCAL YEAR MALLINCKRODT MEDICAL PRODUCTS CONTINUES TO BE THE EARNINGS POWERHOUSE FOR IMCERA MR HOLMAN SAID OPERATING EARNINGS FOR THE UNIT JUMPED 45 TO 50 IN THE SECOND QUARTER AND SALES INCREASED BY ALMOST ONETHIRD HE SAID HE CITED STRONG SALES OF THE COMPANY'S OPTIRAY MEDICAL IMAGING PRODUCT IN EUROPE AND ASIA AS A MAJOR REASON EXCLUDING DISCONTINUED OPERATIONS IN THE COMPANY'S CHEMICALS DIVISION OPERATING EARNINGS INCREASED ABOUT 15 TO 20 AND SALES WERE ROUGHLY FLAT WITH A YEAR EARLIER MR HOLMAN SAID BIG SELLERS IN THE DIVISION INCLUDE INTERMEDIATE INGREDIENTS USED IN THE NONASPIRIN PAIN RELIEVER ACETAMINOPHEN AND MEDICAL NARCOTICS INCLUDING CODEINE AND MORPHINE 9301180026 930118 TECHNOLOGY BRIEF SYQUEST TECHNOLOGY INC EARNINGS NEARLY DOUBLED IN THE FISCAL FIRST QUARTER SYQUEST TECHNOLOGY INC A MAKER OF COMPUTER DATA STORAGE DEVICES SAID GROWING SALES OF HIGHERMARGIN PRODUCTS HELPED IT NEARLY DOUBLE FISCAL FIRSTQUARTER PROFIT TO 45 MILLION OR 35 CENTS A SHARE FROM 23 MILLION OR 23 CENTS A SHARE A YEAR EARLIER IN THE PERIOD ENDED DEC 31 REVENUE GREW 29 TO 507 MILLION FROM 394 MILLION THE COMPANY IN FREMONT CALIF CREDITED IMPROVED SALES OF HIGHMARGIN WINCHESTER DISK CARTRIDGES ALONG WITH FAVORABLE TAX RATES FOR THE RECORD PERFORMANCE THE COMPANY'S SHARES CLOSED IN FRIDAY TRADING AT 2275 UNCHANGED ON THE OVERTHECOUNTER MARKET 9301180025 930118 TECHNOLOGY PHONECALL CRUSH FORCES GATEWAY TO BOOST ITS STAFF BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL MAILORDER COMPUTER MARKETER GATEWAY 2000 BOLSTERED ITS CUSTOMER SERVICE TO HELP IRRITATED CONSUMERS WHO AFTER BUYING CHRISTMAS COMPUTERS HAVEN'T BEEN ABLE TO GET THROUGH THE COMPANY'S JAMMED PHONE LINES FOR HELP THE COMPANY SAID IT EXPANDED ITS PHONE BANK AND BOOSTED ITS WORK FORCE BY NEARLY A THIRD TO COPE THE PRIVATELY HELD PERSONAL COMPUTER COMPANY BASED IN NORTH SIOUX CITY SD SAID IT HAS BEEN HIT WITH COMPLAINTS IN RECENT WEEKS FROM NEW PC BUYERS WHO CAN'T GET THROUGH ON ITS TOLLFREE HELP LINES THE CUSTOMERS ACCORDING TO GATEWAY OFFICIALS AS WELL AS A REPORT IN TODAY'S INFOWORLD TRADE MAGAZINE HAVE BEGUN CALLING COMPANY MANAGERS TO COMPLAIN FURTHERMORE MANY FRUSTRATED CUSTOMERS HAVE FILLED THE NATION'S COMPUTER BULLETINBOARD NETWORKS WITH STORIES OF BUSY SIGNALS AND UNRETURNED PHONE CALLS THEY'RE STARTING TO LET THEIR EMOTIONS OUT SAYS DENIS LUEDERS THE COMPANY'S TECHNICAL SUPPORT MANAGER GATEWAY WHICH WAS STARTED EIGHT YEARS AGO IN A CONVERTED BARN HAS EXPERIENCED A STRING OF RECORD SALES YEARS BY SELLING ITS MACHINES AT LOW PRICES AND ADVERTISING THEM HEAVILY IN THE COMPUTER PRESS THE COMPANY HAS SEEN ITS SALES ZOOM TO 11 BILLION LAST YEAR FROM 6268 MILLION IN 1991 OFFICIALS SAY PROFIT FIGURES AREN'T DISCLOSED LIKE MOST OF ITS PEERS IN THE PERSONAL COMPUTER INDUSTRY THE COMPANY REPORTED PARTICULARLY BRISK BUSINESS IN DECEMBER THANKS TO A HIGHPROFILE PC PRICE WAR THAT ATTRACTED WAVES OF FIRSTTIME BUYERS THAT SURGE HELPED PRODUCE ONE OF THE BEST CHRISTMAS SELLING SEASONS IN YEARS INCREASING DEMAND THOUGH HAS PRODUCED PRODUCT SHORTAGES AT SOME COMPANIES MOST NOTABLY COMPAQ COMPUTER CORP IN HOUSTON WHICH LIKE MANY OTHER COMPUTER COMPANIES ALSO HAS BEEFED UP ITS TELEPHONE SUPPORT OPERATIONS GATEWAY OFFICIALS FACED WITH A CRUSH OF QUESTIONS FROM NEW COMPUTERUSERS SAY THE COMPANY HIRED 464 NEW EMPLOYEES IN DECEMBER BOOSTING EMPLOYMENT TO 1876 MOREOVER THE COMPANY EXPANDED ITS PHONE BANK AND ADDED AN AUTOMATED TELEPHONE ROUTING SYSTEM TO HANDLE VOLUME THAT CAN REACH AS HIGH AS 5000 CALLS A DAY THIS IS A CYCLICAL ENVIRONMENT MR LUEDERS SAYS EVERYONE IN THE WHOLE INDUSTRY GOES THROUGH THIS UP AND DOWN WE'RE CATCHING UP 9301180024 930118 PENTAGON PROBE CITES AIR FORCE AIDES OVER HANDLING OF MCDONNELL CONTRACTS BY THOMAS E RICKS AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL AN INTERNAL PENTAGON INVESTIGATION OF THE AIR FORCE'S HANDLING OF ITS CONTRACTS WITH MCDONNELL DOUGLAS CORP RECOMMENDS THAT SEVERAL DEFENSE DEPARTMENT OFFICIALS BE DISCIPLINED THE AIR FORCE SAID THE DEFENSE DEPARTMENT'S INSPECTOR GENERAL ALSO CONCLUDED THAT DURING THE SECOND HALF OF 1990 THE PERIOD COVERED BY THE REPORT THE AIR FORCE IMPROPERLY PAID 500 MILLION TO MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR DEREK VANDER SCHAAF THE ACTING INSPECTOR GENERAL COULDN'T BE REACHED YESTERDAY FOR COMMENT HIS REPORT HASN'T BEEN RELEASED YET PARTLY BECAUSE MCDONNELL DOUGLAS IS SAID TO BE ARGUING THAT IT SHOULDN'T BE MADE PUBLIC BECAUSE IT CONTAINS A LARGE AMOUNT OF PROPRIETARY INFORMATION THE REPORT WAS DELIVERED TO AIR FORCE SECRETARY DONALD RICE LAST FRIDAY IN A STATEMENT CONVEYED TO THIS NEWSPAPER BY A SPOKESMAN FRIDAY EVENING MR RICE SAID THIS INQUIRY READDRESSES MATTERS WITH WHICH WE'VE TAKEN ISSUE BEFORE BUT IN THIS CASE RECOMMENDS DISCIPLINARY ACTION AGAINST SEVERAL INDIVIDUALS IN ADDITION TO THE MORE TYPICAL MANAGEMENT RECOMMENDATIONS THE AIR FORCE DIDN'T IDENTIFY THE PEOPLE WHO ARE CITED FOR ACTING IMPROPERLY BUT THEY ARE BELIEVED TO INCLUDE JOHN WELCH THE FORMER HEAD OF ACQUISITION FOR THE AIR FORCE AND TWO AIR FORCE GENERALS WHO HAVE WORKED ON THE C17 MILITARY CARGO PLANE EDWARD P BARRY AND MICHAEL BUTCHKO NONE OF THE THREE MEN COULD BE REACHED FOR COMMENT OVER THE WEEKEND FAR FROM ENDORSING THE REPORT MR RICE SAID IN HIS STATEMENT THAT HE WOULDN'T COMMENT ON ITS VALIDITY AND THAT HE PLANNED TO ASK FOR THE INSPECTOR GENERAL'S RECORDS FOR AN INDEPENDENT REVIEW TO PROVIDE A FACTUAL BASIS FOR ACTION BY THE AIR FORCE A MCDONNELL DOUGLAS SPOKESMAN SAID COMPANY OFFICIALS HAVEN'T YET REVIEWED THE REPORT BUT THEY UNDERSTAND THAT IT FOCUSES ON ISSUES PREVIOUSLY AIRED IN PUBLIC HEARINGS HE ADDED THAT THE COMPANY'S POSITION CONTINUES TO BE THAT IT HAS PERFORMED AS REQUIRED HAS BEEN PAID ONLY FOR WORK PERFORMED AND HAS COMPLIED WITH ALL ACCOUNTING RULES THE INSPECTOR GENERAL'S REPORT COMES AS THE ST LOUISBASED COMPANY IS PREPARING TO ANNOUNCE THAT THE AIR FORCE OWES IT AS MUCH AS 12 BILLION FOR PAST DISRUPTIONS IN THE C17 PROGRAM RELEASE OF THE REPORT IN ITS CURRENT FORM WOULD MAKE IT HARDER FOR THE AIR FORCE TO ENTERTAIN THAT CLAIM AND IS SURE TO BOOST CONGRESSIONAL INTEREST IN WHATEVER THE AIR FORCE DOES WITH IT THE INQUIRY WAS CONDUCTED IN RESPONSE TO A REQUEST FROM THE NATIONAL SECURITY SUBCOMMITTEE OF THE HOUSE GOVERNMENT OPERATIONS COMMITTEE THE INSPECTOR GENERAL'S CONCLUSIONS WEREN'T TOTALLY UNEXPECTED BUT THE EXTENT OF THE FINDINGS AND HIS UNUSUAL RECOMMENDATION FOR PUNISHING SENIOR OFFICIALS NONETHELESS SURPRISED PEOPLE FAMILIAR WITH THE SITUATION LAST MAY THE INSPECTOR GENERAL ACCUSED THE AIR FORCE OF PROVIDING EXTRAORDINARY FINANCIAL ASSISTANCE TO THE COMPANY AND THEN TRYING TO HIDE THE FACT THE AMOUNTS OF MONEY BEING DISCUSSED WERE SMALLER HOWEVER AND ACCORDING TO TESTIMONY GIVEN AT THE TIME AIR FORCE BRASS HAD PUSHED THROUGH IMPROPER AND RETROACTIVE ACCOUNTING CHANGES THAT INCREASED THE COMPANY'S CASH FLOW BY 150 MILLION MOREOVER IN A FILING LATE LAST YEAR WITH THE SECURITIES AND EXCHANGE COMMISSION MCDONNELL DISCLOSED A CURIOUS 250 MILLION PAYMENT FROM THE PENTAGON THAT HAD THE EFFECT OF TEMPORARILY ELIMINATING A NEGATIVE CASH BALANCE AT THE COMPANY JUST AS THE THIRD QUARTER ENDED THAT PAYMENT WAS LATER RETURNED TO THE GOVERNMENT ON FRIDAY MCDONNELL'S COMMON CLOSED AT 57 UP 3125 ON VOLUME OF 509300 SHARES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ANALYSTS SUGGESTED THE SPURT COULD BE EXPLAINED PARTLY BY INVESTOR OPTIMISM OVER THE COMPANY'S EFFORTS TO GET ADDED C17 FUNDING THROUGH THE NEW CLAIM IT INTENDS TO SUBMIT 9301180022 930118 ECONOMY INDUSTRY OUTPUT INCHED UP 03 FOR DECEMBER NO PARTICULAR BRIGHT SPOTS ARE REPORTED IN DATA CONFIDENCE LEVEL EASES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY IS STILL IMPROVING SLOWLY INDUSTRIAL PRODUCTION EDGED UP 03 LAST MONTH THE FEDERAL RESERVE SAID FOLLOWING A 04 RISE IN NOVEMBER THE IMPROVEMENT WAS BROADBASED BUT THERE WERE NO REAL BRIGHT SPOTS EVERY CATEGORY ROSE LESS THAN IN NOVEMBER OR WAS UNCHANGED IN OTHER REPORTS THE UNIVERSITY OF MICHIGAN'S CONSUMER CONFIDENCE INDEX DROPPED ONE POINT TO 90 IN EARLY JANUARY ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT DESPITE THE DECLINE CONSUMER CONFIDENCE IS RELATIVELY HIGH COMPARED WITH ITS DISMAL SUMMER AND PREELECTION LEVELS THE TRADE BALANCE BARELY CHANGED IN NOVEMBER ACCORDING TO THE COMMERCE DEPARTMENT THE DEFICIT INCREASED ROUGHLY 369 MILLION TO 759 BILLION BOTH EXPORTS AND IMPORTS DECLINED BUSINESSES INCREASED THEIR INVENTORIES 04 IN NOVEMBER TO 83817 BILLION THE COMMERCE DEPARTMENT SAID FACTORY INVENTORIES WERE ACTUALLY BEING LIQUIDATED BUT WHOLESALE AND RETAIL INVENTORIES WERE UP ACROSS THE BOARD ACCORDING TO THE INDUSTRIALPRODUCTION REPORT OUTPUT OF BUSINESS EQUIPMENT WHICH HAS SHOWN REPEATED SIGNS OF STRENGTH IN RECENT MONTHS ROSE THE MOST INCREASING 09 DURABLEGOODS PRODUCTION WAS UP 07 OUTPUT OF CONSUMER GOODS MATERIALS AND NONDURABLE GOODS ALL ROSE MORE MODERATELY ONLY CONSTRUCTIONSUPPLY AND UTILITY OUTPUT DROPPED OFF IN NOVEMBER INDUSTRIAL PRODUCTION IN DECEMBER WAS UP 29 FROM A YEAR EARLIER A MARKED IMPROVEMENT FROM THE 19 DROP IN 1991 INDUSTRY OPERATED AT 793 CAPACITY IN DECEMBER UP FROM 792 THE MONTH BEFORE THE OPERATING RATE GREW 21 FROM DECEMBER 1991 THE TRADE REPORT SAID IMPORTS FELL 16 IN NOVEMBER TO 456 BILLION WHILE EXPORTS FELL 28 TO 38 BILLION THE DROP IN EXPORTS REFLECTED DECREASES MAINLY IN THE SALE OF CAPITAL GOODS INDUSTRIAL SUPPLIES AND FOOD ABROAD THE DROP IN IMPORTS WAS THE RESULT OF THE US BUYING FEWER INDUSTRIAL SUPPLIES CONSUMER GOODS AND CAPITAL GOODS ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN NOVEMBER THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN DECEMBER THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR DECEMBER STOOD AT 1105 OF THE 1987 AVERAGE 9301180021 930118 COMMODITIES WORLD'S FUTURES EXCHANGES FORGET RIVALRIES AND JOIN FORCES IN MUTUAL OFFSET AGREEMENTS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FOR YEARS EXCHANGES HERE AND ABROAD HAVE BEEN BATTLING FOR MARKET SHARE IN THE FIERCELY COMPETITIVE GLOBAL FUTURES INDUSTRY BUT NOW THESE COMPETITORS ARE APPARENTLY LEARNING TO COOPERATE THEY ARE PURSUING COOPERATIVE AGREEMENTS CALLED MUTUAL OFFSETS IN WHICH RIVAL EXCHANGES JOIN FORCES TO WRING OUT EVERY OUNCE OF AVAILABLE DEMAND FOR THE FINANCIAL FUTURES CONTRACTS THEY TRADE MUTUAL OFFSETS PROVIDE YOU WITH A LIQUID MARKET IN A DIFFERENT TIME ZONE THAN WHERE YOU TRADE SAYS WILLIAM WALTER EXECUTIVE VICE PRESIDENT AT THE CHICAGO CORP BROKERAGE FIRM THEY ALLOW YOU TO GIVE A CLIENT BETTER EXECUTION OF HIS TRADE AND THE BROADER MARKETS ARE AROUND THE CLOCK THE MORE PEOPLE YOU'LL GET USING THESE MARKETS IN A MUTUAL OFFSET ARRANGEMENT TWO EXCHANGES THAT OFFER SIMILAR CONTRACTS AGREE TO ALLOW TRADERS WHO OPEN FUTURES POSITIONS AT ONE EXCHANGE TO CLOSE THEM AT THE OTHER WHILE THE IDEA BEHIND MUTUAL OFFSETS ISN'T NEW ONLY RECENTLY HAVE SUCH PACTS GAINED WIDESPREAD SUPPORT SINCE 1984 THE CHICAGO MERCANTILE EXCHANGE AND THE SINGAPORE MONETARY EXCHANGE HAVE AGREED TO HONOR ONE ANOTHER'S VERSIONS OF FOREIGN CURRENCY AND EURODOLLAR FUTURES CONTRACTS EURODOLLARS ARE POPULAR INSTRUMENTS THAT TRACK THE MOVEMENT OF SHORTTERM INTEREST RATES THE ARRANGEMENT HAS BROUGHT NEW BUSINESS TO BOTH EXCHANGES ESPECIALLY RECENTLY BIG INVESTORS SUCH AS BANKS AND INSURANCE COMPANIES USE EURODOLLAR CONTRACTS TO PROTECT THEMSELVES FROM SUDDEN SWINGS IN SHORTTERM RATES IN THE PAST TWO YEARS USE OF EURODOLLAR CONTRACTS BY ASIAN INVESTORS HAS SURGED BRINGING NEW BUSINESS TO BOTH CHICAGO AND SINGAPORE BOTH EXCHANGES ATTRIBUTE SOME OF THE GAINS TO THEIR MUTUAL OFFSET AGREEMENT AND BECAUSE THE MERC AND THE SINGAPORE EXCHANGE WHICH IS KNOWN AS SIMEX ARE IN DIFFERENT TIME ZONES THEY DON'T COMPETE FOR EURODOLLAR TRADING BUSINESS DURING THE SAME TRADING HOURS THE SIMEXMERC EXPERIMENT HAS WORKED BRILLIANTLY SAYS ROBERT FELKER PRESIDENT OF FIRST CHICAGO FUTURES A CHICAGO BROKERAGE FIRM I THINK IT SHOWS THAT MUTUAL OFFSETS OFFER TREMENDOUS POTENTIAL TO ATTRACT TRADING FROM A TRADER'S PERSPECTIVE THERE ARE TWO ADVANTAGES TO THE MERCSIMEX ARRANGEMENT THE FIRST IS THAT EURODOLLAR CONTRACTS ARE AVAILABLE ON ACTIVE MARKETS DURING BOTH THE US AND ASIAN TRADING DAYS GIVING TRADERS A BETTER CHANCE TO BAIL OUT OF A LOSING POSITION OR TAKE PROFITS FROM A WINNING TRADE THE SECOND BENEFIT IS THAT THE TRADER HAS TO PAY GOODFAITH TRADING DEPOSITS OR MARGINS AT ONLY ONE OF THE TWO EXCHANGES WITHOUT THE AGREEMENT THE SHORTTERM COST OF TRADING AT BOTH EXCHANGES WOULD BE DOUBLED ENCOURAGED BY THE RESULTS OF THE MERCSIMEX PACT THE CHICAGO BOARD OF TRADE IS NEGOTIATING TERMS OF A BROADER OFFSET AGREEMENT WITH THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE KNOWN AS LIFFE AMONG OTHER THINGS LIFFE TRADES WIDELY USED CONTRACTS BASED ON GERMAN AND ITALIAN BONDS THE CBOT WANTS TO TRADE THE SAME FOREIGN BOND CONTRACTS WHICH THE CHICAGO EXCHANGE HOPES LIFFE WILL ALLOW TO DIRECTLY OFFSET ITS CONTRACTS IN RETURN THE CBOT WOULD LET LIFFE TRADE AND OFFSET A VERSION OF THE CBOT'S POPULAR 10YEAR TREASURYNOTE FUTURES CONTRACT LIFFE IS INVOLVED IN SEPARATE NEGOTIATIONS ABOUT MUTUAL OFFSETS WITH FUTURES EXCHANGES IN THE PACIFIC RIM THIS IS SOMETHING THAT IS BENEFICIAL TO BOTH EXCHANGES AND THE INVESTMENT COMMUNITY AS A WHOLE SAYS DAVID DEROSA A PORTFOLIO MANAGER AT BEA ASSOCIATES IN NEW YORK IF THIS WENT THROUGH MY FIRM WOULD PUT MORE ORDERS ON THE OVERNIGHT SHIFT I THINK THEY OUGHT TO HAVE MUTUAL OFFSETS FOR OPTIONS CONTRACTS AS WELL AS FUTURES NOT EVERYONE AT THE CBOT IS CONVINCED THAT AN AGREEMENT WITH LIFFE IS A GOOD IDEA HOWEVER NINE YEARS AGO MEMBERS OF A CBOT BUSINESSSTRATEGY COMMITTEE PROPOSED A SWEEPING GLOBAL MUTUAL OFFSET SYSTEM UNDER WHICH FUTURES EXCHANGES AROUND THE WORLD WOULD BE ALLOWED TO TRADE ONE ANOTHER'S CONTRACTS THAT PROPOSAL DIED SOON AFTER IT EMERGED FROM THE COMMITTEE SHOUTED DOWN BY POWERFUL CBOT GRAINTRADING FIRMS WHO FEARED IT WAS TANTAMOUNT TO GIVING AWAY THE EXCHANGE'S MARKET SHARE MANY GRAIN TRADERS ARE SAID TO CONTINUE TO STRONGLY OPPOSE MUTUAL OFFSETS DESPITE THE SUCCESS OF THE MERCSIMEX PACT CURRENT CBOT EXECUTIVES APPEAR MORE RECEPTIVE TO THE IDEA WHILE MUTUAL OFFSET MIGHT CAUSE MARKET SHARE TO GO DOWN IT WILL CREATE A BIGGER PIE SAYS NEW CBOT CHAIRMAN PATRICK H ARBOR SO THERE COULD BE MORE BUSINESS OVERALL MR ARBOR SAYS HE WILL DISCUSS TERMS OF THE MUTUAL OFFSET ARRANGEMENT WITH LIFFE EXECUTIVES WHEN THEY VISIT EARLY NEXT MONTH ANOTHER POTENTIAL DRAWBACK TO MUTUAL OFFSETS IS THAT THEY MIGHT DRAIN BUSINESS FROM GLOBEX THE HEAVILY TOUTED COMPUTERIZED TRADING SYSTEM THAT HAS LIMPED ALONG SINCE ITS LAUNCH LAST JUNE EXECUTIVES AT GLOBEX WHICH IS A JOINT VENTURE RUN BY THE MERC THE CBOT AND REUTERS HOLDINGS PLC HAVE BEEN TRYING TO ENTICE LIFFE TO LIST ITS EUROPEAN FINANCIAL CONTRACTS ON THE SYSTEM FOR LIFFE THE ADVANTAGE OF JOINING GLOBEX WOULD BE TO OFFER ITS CONTRACTS TO TRADERS ELSEWHERE IN THE WORLD DURING HOURS ITS MARKETS ARE CLOSED NOT ONLY WOULD A MUTUAL OFFSET BETWEEN THE CBOT AND LIFFE REMOVE SOME OF THE INCENTIVE FOR LIFFE TO JOIN GLOBEX IT COULD SIPHON OFF DEMAND FOR LIFFE CONTRACTS ON GLOBEX IF THE LONDON EXCHANGE EVER DID JOIN THE SYSTEM NEVERTHELESS EVEN SOME EXECUTIVES WHOSE FIRMS ARE ENTHUSIASTIC SUPPORTERS OF GLOBEX ALSO FAVOR MUTUAL OFFSET AGREEMENTS THE BOTTOM LINE IS THAT WE'RE NOT GOING TO BE ABLE TO ASSURE THE SUCCESS OF GLOBEX BY AVOIDING ALTERNATIVES THAT ARE USEFUL TO MARKET PARTICIPANTS SAYS DAVID GANIS PRESIDENT OF NORTHERN FUTURES CORP FUTURES BROKERAGE COMPANIES LIKE US HAVE BEEN ANXIOUS FOR YEARS TO SEE MORE MUTUAL OFFSET ARRANGEMENTS IN THE MARKETPLACE LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK ENERGY PETROLEUM PRICES ENDED LAST WEEK ON AN UPBEAT NOTE DESPITE THE BEARISH TONE WHICH PERVADES WORLD OIL MARKETS ON THE NEW YORK MERCANTILE EXCHANGE WHERE SOME FUELS FUTURES HIT LIFEOFCONTRACT LOWS EARLIER IN THE WEEK FEBRUARY CRUDE OIL ROSE FRIDAY FOR THE THIRD STRAIGHT DAY TO SETTLE AT 1887 A BARREL MANY TRADERS ARGUE THAT THE RALLY WAS TECHNICALLY DRIVEN AND THAT SUPPLYDEMAND FUNDAMENTALS REMAIN RELATIVELY WEAK AS A RESULT THEY SAY MUCH NOW DEPENDS ON DEVELOPMENTS IN THE MIDDLE EAST AND IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IRAQ DOESN'T EXPORT ANY OIL BECAUSE OF THE UNITED NATIONS BAN BUT FURTHER CONFLICT BETWEEN IT AND ALLIED FORCES COULD HAVE AN ADDITIONAL IMPACT ON PRICES WEAK OIL MARKETS COULD BE FIRMED SOME BY ATTACKS SUCH AS YESTERDAY'S MISSILE RAID ON THE FORMER NUCLEAR MANUFACTURING FACILITY NEAR BAGHDAD IRONICALLY HOWEVER PRICES MAY FALL ON ANY EVIDENCE SADDAM HUSSEIN OF IRAQ IS RESOLVING ISSUES WITH THE UN OR IF HE IS OVERTHROWN IN EITHER CASE NOTES THE ENERGY COMPASS AN OIL INDUSTRY PUBLICATION IRAQ LIKELY WOULD REGAIN ACCESS TO OIL MARKETS WHICH ALREADY ARE OVERSUPPLIED WITH CRUDE OPEC IS ALSO IN THE SPOTLIGHT WITH THE NEXT MEETING OF THE OIL MINISTERS LESS THAN A MONTH AWAY THE CONSENSUS IS THAT THE EXPORTERS PARTICULARLY OPEC'S PERSIAN GULF MEMBERS SUCH AS SAUDI ARABIA AND IRAN HAVE BEEN PRODUCING TOO MUCH PRICES MAY BE GETTING LOW ENOUGH NOW TO GALVANIZE THE GROUP INTO ACTION NOTES PETROLEUM INTELLIGENCE WEEKLY LAST YEAR'S SUCCESSFUL FEBRUARY OPEC MEETING PROVIDES A CLEAR PRECEDENT FOR DISCIPLINE DESPITE RECENT OUTPUT ANARCHY AMONG MEMBERS REPORTS THE WEEKLY'S OIL MARKET FLASH COFFEE FUTURES TRADERS WILL TURN THEIR FOCUS THIS WEEK TO A SERIES OF IMPORTANT MEETINGS AMONG LEADING COFFEE PRODUCERS AMID CONCERNS OVER A GLUTTED MARKET THE MEETINGS INCLUDING ONE TODAY IN BRASILIA BETWEEN BRAZILIAN AND COLOMBIAN PRODUCERS WILL PROVIDE SOME INDICATION WHETHER AN AGREEMENT ON OVERALL EXPORT QUOTAS IS WITHIN REACH FOR THE INTERNATIONAL COFFEE ORGANIZATION WHICH BRINGS TOGETHER LEADING PRODUCER AND CONSUMER NATIONS MARKET SENTIMENT THAT NO AGREEMENT WILL BE REACHED AT THE FULL ICO MEETING IN LONDON ON JAN 25 HAS BEEN BEARISH FOR COFFEE FUTURES PRICES AS HAS CONCERN OVER THE EXPORT POLICIES OF THE NEW BRAZILIAN GOVERNMENT ON THE COFFEE SUGAR AND COCOA EXCHANGE FRIDAY COFFEE FUTURES PRICES FOR MARCH DELIVERY FELL 265 CENTS TO CLOSE AT 6975 CENTS A POUND THE LOWEST PRICE SINCE MIDNOVEMBER 9301180020 930118 POLITICS & POLICY WITH SYMBOLIC RIDE TO WASHINGTON CLINTON TRIES TO REGAIN THE LUSTER LOST IN A ROCKY TRANSITION BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON ARRIVED HERE ABOARD A BUS FOR HIS INAUGURATION AS THE 42ND PRESIDENT HOPING THAT MANOFTHEPEOPLE SYMBOLISM CAN HELP RECAPTURE SOME OF THE LUSTER LOST IN A ROCKY TRANSITION IN THE WEEKS SINCE THE GLOWING NIGHT OF HIS VICTORY CELEBRATION IN LITTLE ROCK ARK MR CLINTON HAS FOUND HIS CREDIBILITY QUESTIONED FOR BREAKING PROMISES AND HIS JUDGMENT SCRUTINIZED ON SEVERAL CABINET NOMINEES WHO HAVE SEEMED TO SYMBOLIZE BUSINESS AS USUAL AT TIMES HE HAS LOOKED LITTLE LIKE THE CANDIDATE WHO SWEPT TO THE WHITE HOUSE WITH A MASTER PLAN FOR THE NATION EVEN AMONG SOME OF HIS STRONGEST SUPPORTERS THE EUPHORIA HAS FADED AS IT HAS GROWN CLEARER THAT MR CLINTON ISN'T CARRYING FROM LITTLE ROCK A FINALIZED PLAN FOR ECONOMIC RECOVERY OR HEALTH CARE REFORM OR A NEW POLICY TOWARD HAITIAN REFUGEES AS BOLDLY PROMISED DURING THE CAMPAIGN SUDDENLY MR CLINTON HAS TO FIGHT THE IMAGE OF A POLITICIAN WHO IS SLOW TO MAKE DECISIONS AND EVEN NEW YORK SEN DANIEL MOYNIHAN A FELLOW DEMOCRAT RAISED QUESTIONS LAST WEEK ABOUT THE CLATTER OF MR CLINTON'S PROMISES BEING TOSSED ASIDE THE SURGE OF CRITICISM LATE IN THE TRANSITION HAS MR CLINTON'S AIDES PLEADING FOR THEIR HONEYMOON JUDGE THE PRESIDENTELECT BY HIS PERFORMANCE SAYS GEORGE STEPHANOPOULOS THE COMMUNICATIONS DIRECTOR IN THE CLINTON WHITE HOUSE JUDGE HIM BY THE PLANS THAT HE PRESENTS TO THE CONGRESS JUDGE HIM BY HIS ACTIONS IN OFFICE AND JUDGE HIM BY WHAT HE ACHIEVES MR STEPHANOPOULOS ARGUES THAT A TRANSITION IS AN INHERENTLY DIFFICULT PERIOD AND THAT MR CLINTON HAS ACCOMPLISHED HIS GOALS CREATING A NEW ETHICS POLICY APPOINTING A CABINET HIRING A WHITE HOUSE STAFF AND FILLING OTHER JOBS AND DEE DEE MYERS MR CLINTON'S PRESS SECRETARY INSISTS THAT IT'S A LITTLE UNFAIR TO ACCUSE HIM OF BREAKING PROMISES HE HASN'T HAD A CHANCE TO KEEP MS MYERS ATTRIBUTES THE CRITICISM TO A NEWS VACUUM THAT HAS FOCUSED MEDIA ATTENTION ON COMPARISONS OF CAMPAIGN PROMISES TO WHAT MAY HAPPEN INDEED IT DOES APPEAR THAT AS MUCH AS THE WASHINGTON ESTABLISHMENT AND THE PRESS CORPS MAY BE SNIPING AT THE NEW PRESIDENT THE PUBLIC HAS BEEN LESS SKEPTICAL POLLS SO FAR INDICATE HIS STOCK IN PUBLIC OPINION REMAINS HIGH AND A WEEK OF TELEGENIC INAUGURAL EVENTS WITH THEIR EMPHASIS ON OPENNESS AND YOUTHFUL VIGOR UNDOUBTEDLY WILL REKINDLE SOME OF THE ENTHUSIASM THE CLINTON CAMPAIGN IGNITED IN THE FALL MR CLINTON FOR INSTANCE RETURNED TO THAT CAMPAIGN MODE YESTERDAY FIRST HE VISITED THOMAS JEFFERSON'S HOME MONTICELLO AND BEGAN DEFINING HIS ADMINISTRATION IN MR JEFFERSON'S IDEALISTIC TERMS TELLING AMERICANS THIS IS YOUR GOVERNMENT JUST AS MUCH AS IT IS YOUR COUNTRY HE LINKED MR JEFFERSON'S BELIEF IN PUBLIC SERVICE WITH HIS OWN CALL FOR CITIZEN ACTIVISM AFTER TRAVELING TO WASHINGTON MR CLINTON JOINED A THRONG OF 300000 PEOPLE AT THE LINCOLN MEMORIAL FOR ENTERTAINMENT FIREWORKS AND HIS RINGING OF THE BELLS OF HOPE FOR MR CLINTON IT WAS BACK TO POSITIVE IMAGES SOMETHING HE MISSED DURING HIS STAY IN LITTLE ROCK STILL IT'S CLEAR THAT EVEN WHILE BIDING HIS TIME MR CLINTON HAS HAD AN IMPORTANT IMPACT ON THE WAY BUSINESS IS CONDUCTED IN WASHINGTON REPUBLICANS HAVE BEEN SURPRISINGLY TAME AND ARE LARGELY HOLDING PARTISAN FIRE TO SEE WHETHER MR CLINTON WORKS WITH THEM AS HE HAS PROMISED IN PRIVATE CONVERSATIONS IN ONE NOTEWORTHY ACKNOWLEDGEMENT OF A FUNDAMENTAL POWER SHIFT LOBBYING FIRMS ARE SCAMPERING TO FIND DEMOCRATS TO COURT HIS GOVERNMENT AND SOME ALREADY HAVE FOUND THEIR NEW HEAVY HITTERS AND DESPITE ANY FLAWS ELSEWHERE IN HIS TRANSITION THE ONE AREA WHERE MR CLINTON APPEARS TO BE IN GOOD SHAPE IS WHERE IT MATTERS MOST IN THE APPOINTMENT OF A SKILLED AND EXPERIENCED ECONOMIC TEAM TREASURY SECRETARYDESIGNATE LLOYD BENTSEN AND BUDGET DIRECTORDESIGNATE LEON PANETTA HAVE BEEN WORKING WITH THEIR DEPUTIES AND CONGRESSIONAL STAFFERS FOR SEVERAL WEEKS REVISING THE PRESIDENTELECT'S PLAN FOR ECONOMIC RECOVERY STILL EVEN IN THAT AREA THERE ARE PROBLEMS MR BENTSEN WAS THE SUBJECT OF NEW ETHICAL SCRUTINY OVER THE WEEKEND AN ARTICLE IN THE NEW YORK TIMES YESTERDAY SAID MR BENTSEN IN 1988 BOUGHT LUCRATIVE STOCK IN A NEW COMPANY FORMED BY A TEXAS SAVINGSANDLOAN OPERATOR ON WHOSE BEHALF HE HAD MET WITH FEDERAL REGULATORS AND SEVERAL SECONDTIER JOBS THAT ARE CRUCIAL TO FINISHING AN ECONOMIC PLAN INCLUDING THE TOP TAX JOB AT THE TREASURY AND THE BUDGET OFFICE'S ASSOCIATE DIRECTOR POSTS REMAIN UNFILLED TREASURY SECRETARY NICHOLAS BRADY'S AIDES ARE SURPRISED THAT THEY HAVEN'T HAD MORE CONTACT WITH MR BENTSEN'S TEAM ON THE NUTS AND BOLTS OF THE INSTITUTION WE'RE NOT SURE WHO TO GIVE THE KEYS TO SAYS ONE MR CLINTON'S MOST DELICATE PROBLEM MAY BE HIS WHITE HOUSE STAFF IT IS YOUNG BRIGHT AND DIVERSE BUT IT IS HARD TO PICTURE WHO WILL PLAY THE JOHN SUNUNU ROLE THE HARDNOSED ENFORCER AND POLITICAL HEAVY MR CLINTON'S CHIEF OF STAFF THOMAS MACK MCLARTY AND HIS DEPUTY MARK GEARAN ARE RELATIVELY SOFTSPOKEN MEN WHO DON'T SEEM THE TYPE TO MUSCLE LOBBYISTS INTEREST GROUPS AND CONGRESSIONAL LEADERS AS MR SUNUNU WAS CALLED UPON TO DO FOR PRESIDENT BUSH THE CLINTON TEAM WILL MISS HAROLD ICKES A LIBERAL ACTIVIST LAWYER AND LONGTIME CLINTON ALLY WHO WAS TO BE THE STAFF'S TOUGH GUY BUT MR CLINTON LEFT HIM OUT OF THE STAFF AFTER REPORTS THAT HE HAD REPRESENTED A UNION ACCUSED OF LINKS TO ORGANIZED CRIME MACK MCLARTY IS GOING TO HAVE A DIFFICULT TIME SAYS JAMES PFIFFNER A GOVERNMENT PROFESSOR AT GEORGE MASON UNIVERSITY HE PREDICTS THAT KEEPING ORDER WILL BE A LONGTERM PROBLEM AND SAYS IT WILL BE HARD TO COORDINATE THE MANY AIDES WITH THEIR HANDS IN DOMESTIC AND ECONOMIC POLICY THAT MAY MEAN THAT THE RESPONSIBILITY FOR TOUGHNESS FALLS TO MR CLINTON A POLITICIAN WHO PREFERS CONGENIALITY AND CONSENSUSBUILDING HE'S THE GUY IN CHARGE SAYS DEMOCRATIC STRATEGIST MARK SIEGEL HE WANTS AN EXTREMELY CONGENIAL GROUP AND WOULDN'T HAVE IT ANY OTHER WAY EVEN AS MR CLINTON ASSEMBLED THIS AMICABLE TEAM LOBBYISTS IN WASHINGTON HAVE BEEN PREPARING TO TWIST ITS ARM LOBBYING FIRMS WHICH HAVE FOCUSED ON REPUBLICANS FOR 12 YEARS HAVE BEEN ADDING INFLUENTIAL DEMOCRATS TO PREPARE FOR POLICY BATTLES FOR INSTANCE MICHAEL LEWAN FORMER ADMINISTRATIVE ASSISTANT TO CONNECTICUT SEN JOSEPH LIEBERMAN WILL BE REPRESENTING CLIENTS FOR BLACK MANAFORT & STONE A FIRM LED BY SEVERAL REPUBLICAN HEAVYWEIGHTS AND JOHN ORLANDO A FORMER TOP AIDE AT THE HOUSE ENERGY AND COMMERCE COMMITTEE HAS JOINED TIMMONS & CO MANY FIRMS IN THIS TOWN ARE TAKING A LOOK AT WHO THEY HAVE ON BOARD AND WHO THEY NEED TO BRING ON BOARD SAYS DONALD SWEITZER A VICE PRESIDENT AT CAPITOL ASSOCIATES THERE ARE SOME PEOPLE WHO WERE ACTIVE IN THE LAST CAMPAIGN WHO WILL BE HOT PROPERTY IF THEY DON'T GO IN THE GOVERNMENT ARKANSANS ARE IN VOGUE AS WELL THE AMERICAN BANKERS ASSOCIATION NAMED CURT BRADBURY HEAD OF WORTHEN NATIONAL BANK IN LITTLE ROCK TO ITS BOARD EARLIER ANOTHER ARKANSAS BANKER WILLIAM BRANDON JR WAS NAMED PRESIDENT OF THE BANKERS' GROUP SEEKING STILL MORE FIREPOWER THE BANKERS HIRED TWO HIGHPOWERED LOBBYISTS THOMAS BOGGS WHOSE LAW PARTNER IS COMMERCE SECRETARYDESIGNATE RON BROWN AND CHARLES MANATT WHOSE LAW PARTNER IS MICKEY KANTOR MR CLINTON'S NOMINEE FOR US TRADE REPRESENTATIVE OVERALL THOUGH MR CLINTON WILL FIND THAT HIS DELAY IN FILLING SUBCABINET POSITIONS HAS CREATED TENSION AMONG HIS ALLIES IN WASHINGTON ON CAPITOL HILL AND IN THINK TANKS BACKSTABBING HAS ERUPTED IN THE JOCKEYING FOR JOBS WHOEVER GETS A SUBCABINET JOB COULD HIRE TWO DEPUTIES AND STAFFERS ULTIMATELY AFFECTING DOZENS OF PEOPLE ANXIOUSLY WAITING TO SEE WHETHER THEIR CONNECTION WINS AND WHETHER THEY GET JOBS STILL THERE ARE PLENTY OF PLEASANT ASPECTS OF THE JOB OF TAKING POWER THAT MR CLINTON CAN CONTEMPLATE THIS WEEK HE WILL FIND FOR INSTANCE THAT THE NATION'S CAPITAL IS TAKING ON AN ARKANSAS FLAVOR TWO LITTLE ROCK EATERIES DOE'S EAT PLACE WHICH IS LITTLE ROCK'S POLITICAL HANGOUT AND YOUR MOMMA'S GOOD FOOD ARE TRYING TO OPEN BRANCHES IN WASHINGTON AND THERE IS ONE SIMILAR BIT OF GOOD NEWS FOR THE STYLISH MR STEPHANOPOULOS AND OTHERS ON THE CLINTON TEAM THEIR FAVORITE HAIR STYLIST JOEL GALLOWAY WILL COME TO WASHINGTON FOR ONE WEEK A MONTH TO GROOM THEM AT ROBIN WEIR SALON ON P STREET GERALD F SEIB CONTRIBUTED TO THIS ARTICLE 9301180019 930118 COURT REJECTS BID BY BUSH TO DISMISS POSTAL GOVERNORS BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE POSTAL SERVICE WON A FEDERAL APPEALS COURT RULING THAT UPHOLDS ITS INDEPENDENCE FROM THE ADMINISTRATION IN LITIGATING RATEMAKING CASES THE RULING WHICH HALTS PRESIDENT BUSH'S EFFORTS TO DISMISS SOME MEMBERS OF THE AGENCY'S BOARD OF GOVERNORS PERMITS THE AGENCY TO MOVE FORWARD IN ITS LAWSUIT AGAINST THE INDEPENDENT POSTAL RATE COMMISSION IT GRANTS PERMISSION FOR THE POSTAL SERVICE TO FILE A BRIEF IN A CASE INVOLVING PRIVATE MAILERS IN WHICH THE AGENCY IS THE DEFENDANT THE AGENCY'S RELATIONSHIP WITH THE EXECUTIVE BRANCH HAS BEEN A BONE OF CONTENTION BETWEEN THE JUSTICE DEPARTMENTWHICH USUALLY REPRESENTS THE FEDERAL GOVERNMENT IN LITIGATION AND A MAJORITY OF THE POSTAL BOARD BOARD CHAIRMAN BERT MACKIE HAILED THE RULING AS TRULY GRATIFYING ADDING THAT THE PANEL AFFIRMED THE RIGHT OF THE US POSTAL SERVICE AND ITS GOVERNORS TO REPRESENT THEIR POSITIONS IN COURT THE FEUD BETWEEN THE POSTAL SERVICE AND MR BUSH GREW FROM A DISPUTE BETWEEN THE AGENCY AND THE POSTAL RATE COMMISSION OVER A NEW FIRSTCLASS RATE THE POSTAL SERVICE HAD REQUESTED REPRESENTATION FROM THE JUSTICE DEPARTMENT TO FILE A LAWSUIT AGAINST THE COMMISSION AND WHEN THE GOVERNORS LEARNED THAT THE DEPARTMENT'S PROPOSED POSITION WOULD BE FUNDAMENTALLY INCONSISTENT WITH THEIR VIEWS THE POSTAL BOARD TOOK MATTERS INTO ITS OWN HANDS AND FILED THE LAWSUIT INDEPENDENTLY THE JUSTICE DEPARTMENT CONSIDERS THAT ACTION ILLEGAL WHEN MR BUSH LEARNED OF THE DEBATE FROM WHITE HOUSE COUNSEL C BOYDEN GRAY HE DIRECTED THE BOARD TO WITHDRAW ITS FILINGS WHEN THE GOVERNORS VOTED TO REFUSE HIS ORDER MR BUSH PRESENTED THEM WITH AN ULTIMATUM RELINQUISH YOUR CLAIM OR GIVE UP YOUR JOBS THE GOVERNORS WHO CHALLENGED MR BUSH WON A PRELIMINARY INJUNCTION PROHIBITING HIM FROM CARRYING OUT HIS THREAT TO DISMISS THEM BUT THE PRESIDENT ATTEMPTED TO SIDESTEP THE ORDER BY TAPPING LONGTIME FRIEND THOMAS LUDLEY ASHLEY TO SUCCEED ONE OF THE GOVERNORS WHOSE TERM HAD EXPIRED A MOVE THAT COULD TURN THE VOTE AGAINST MR BUSH TO A VOTE AFFIRMING HIS POSITION ATTORNEYS FOR THE GOVERNORS HOWEVER FILED A COMPLAINT FRIDAY CHALLENGING MR BUSH'S NOMINATION OF A SUCCESSOR TO GOV CROCKER NEVIN WHO IS PROTECTED FROM REMOVAL BY THE INJUNCTION 9301180018 930118 WHO'S NEWS TREASURY'S JEROME POWELL WILL JOIN BANKERS TRUST WASHINGTON JEROME POWELL UNDERSECRETARY OF THE TREASURY FOR FINANCE WILL BECOME A MANAGING DIRECTOR OF BANKERS TRUST CO AND CHIEF OF STAFF TO ITS PRESIDENT EUGENE B SHANKS JR MR POWELL FORMERLY AN INVESTMENT BANKER AT DILLON READ & CO WAS APPOINTED ASSISTANT TREASURY SECRETARY FOR DOMESTIC FINANCE IN 1990 AND WAS NAMED UNDERSECRETARY IN MAY 1992 FOLLOWING THE SALOMON BROTHERS SCANDAL MR POWELL LED THE TREASURY'S EFFORTS TO ALTER THE WAY THE GOVERNMENT AUCTIONS ITS SECURITIES HE ALSO HELPED FORM THE BUSH ADMINISTRATION'S PLAN FOR BANKING REFORM WHICH WAS LARGELY REJECTED BY CONGRESS BANKERS TRUST CO IS A UNIT OF BANKERS TRUST NEW YORK CORP 9301180017 930118 UNISYS SEES NET AT HIGH END OF PROJECTIONS FOURTHQUARTER REVENUE BETTER THAN EXPECTED BOOSTING FIRM'S PROFIT BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL UNISYS CORP'S FOURTHQUARTER PROFIT WILL BE AT THE HIGH END OF WALL STREET ANALYSTS' EXPECTATIONS AND ITS 1993 EARNINGS WILL SHOW SIGNIFICANT IMPROVEMENT OVER 1992 LEVELS ACCORDING TO JAMES UNRUH CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN UPBEAT ASSESSMENT OF THE COMPUTER COMPANY'S CONTINUING TURNAROUND MR UNRUH SAID BETTERTHANEXPECTED REVENUE IN THE LATEST PERIOD WILL BOOST UNISYS'S PROFIT TOWARD THE TOP OF ANALYSTS' ESTIMATES WHICH HE SAID RANGE FROM 35 TO 40 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC SECURITIES ANALYSTS MOST RECENTLY PEGGED UNISYS'S FOURTHQUARTER PROFIT BETWEEN 32 AND 43 CENTS A SHARE WITH AN AVERAGE ESTIMATE OF 39 CENTS A SHARE THE ESTIMATES DON'T INCLUDE ANY TAX BENEFITS FROM CARRYING FORWARD OPERATING LOSSES AS UNISYS HAS BEEN DOING IN RECENT QUARTERS IN THE YEARAGO QUARTER UNISYS EARNED 805 MILLION OR 31 CENTS A SHARE ON REVENUE OF 246 BILLION IN A TELEPHONE INTERVIEW FROM DENVER WHERE HE WAS ATTENDING A 1993 KICKOFF EVENT FOR UNISYS EMPLOYEES MR UNRUH SAID 1992 FOURTHQUARTER REVENUE WOULD DECLINE BUT NOT BY AS MUCH AS THE COMPANY HAD ESTIMATED EARLIER LAST YEAR MR UNRUH ALSO SAID HE IS COMFORTABLE WITH ANALYSTS' ESTIMATES ON UNISYS'S 1993 PROFIT WHICH HE SAID RANGE FROM 115 TO 145 A SHARE WITH AN AVERAGE OF ABOUT 130 A SHARE ZACKS REPORTS AN AVERAGE 1993 ESTIMATE OF 134 A SHARE FROM A RANGE OF 115 TO 156 A SHARE MR UNRUH SAID HE'D BE FAIRLY PLEASED WITH SUCH A PERFORMANCE BUT AT THE SAME TIME HE BACKED OFF PREVIOUS STATEMENTS THAT UNISYS WOULD INCREASE ITS REVENUE IN 1993 BECAUSE OF WEAK ECONOMIES IN EUROPE AND JAPAN HE SAID REVENUE WOULD BE PROBABLY ESSENTIALLY FLAT MORE THAN 50 OF UNISYS'S BUSINESS IS OUTSIDE THE US IF UNISYS REPORTS A 40CENTSASHARE PROFIT FOR THE FOURTH QUARTER ITS 1992 PROFIT WOULD BE 103 A SHARE BEFORE TAX BENEFITS A BIG CHANGE FROM LAST YEAR'S LOSS OF 938 A SHARE WHICH INCLUDED A HUGE CHARGE FOR A MASSIVE RESTRUCTURING THAT MR UNRUH NOW CREDITS WITH UNISYS'S SALVATION UNISYS'S 1991 REVENUE WAS 87 BILLION MR UNRUH SAID THE 1992 FIGURE WOULD BE SLIGHTLY LOWER WE CLEARLY TURNED THE COMPANY AROUND IN 1992 SAID MR UNRUH WHO CITED A NUMBER OF MEASURES INCLUDING IMPROVED MARGINS AND BETTERTHANEXPECTED DEBT REDUCTION CASH FLOW AND COSTCUTTING IT WAS AN OUTSTANDING YEAR HE ADDED WE DID WHAT WE SAID WE WOULD AND WE DID BETTER IN MANY AREAS ONE OF THE SURPRISING HIGHLIGHTS OF UNISYS'S 1992 PERFORMANCE WAS THE COMPANY'S BUCKING OF A DOWNWARD TREND AMONG MAKERS OF BIG MAINFRAME COMPUTERS BOTH THE COMPANY'S MAINFRAME LINES POSTED DOUBLEDIGIT INCREASES IN REVENUE FOR THE YEAR ACCORDING TO MR UNRUHA STARK CONTRAST TO OLD RIVAL INTERNATIONAL BUSINESS MACHINES CORP FOR EXAMPLE WHICH HAS SAID IT EXPECTS A 10 DECLINE IN MAINFRAME REVENUE IN 1992 MR UNRUH CREDITED HIS COMPANY'S 1991 RESTRUCTURING FOR THIS DIFFERENCE CONTENDING UNISYS REEVALUATED ITS COSTANDEXPENSE STRUCTURE FAR SOONER THAN IBM WE GOT SOME THINGS DONE EARLIER HE SAID AND WE GOT PAST THE DISRUPTION EARLIER MR UNRUH SAID UNISYS'S MAINFRAME SHOWING LAST YEAR SHOULD REASSURE INVESTORS THAT THE SECTOR CAN'T BE WRITTEN OFF YET EVEN IF IT ISN'T WHERE THE GROWTH IS I THINK THE RESULTS OF 1992 MAKE IT CLEAR THAT OUR MAINFRAME BUSINESS ISN'T GOING TO FALL OFF A CLIFF IN 1993 OR ANYTIME IN THE NEAR FUTURE HE SAID ACCORDING TO MR UNRUH UNISYS'S FUTURE GROWTH WILL COME FROM TRENDIER AREAS SUCH AS SOCALLED CLIENTSERVER COMPUTING AND WILL INCREASINGLY INCLUDE A LARGE SERVICE COMPONENT THE SECTOR POSTED SUBSTANTIAL DOUBLEDIGIT GROWTH IN 1992 HE SAID ANALYSTS AGREE THAT UNISYS HAS THE RIGHT STRATEGY BUT WORRY THAT IT LACKS BLOCKBUSTER PRODUCTS AND WHETHER GROWTH WILL BE FAST ENOUGH AND PROFITABLE ENOUGH TO REPLACE THE OLDLINE MAINFRAME BUSINESS WITH ITS FAT MARGINS INDEED IN CONCEDING THAT UNISYS'S REVENUE WON'T GROW IN 1993 MR UNRUH SAID PRODUCT MIX IS A FACTOR BUT HE SAID THE OVERWHELMING REASON IS WEAKERTHANEXPECTED ECONOMIES IN EUROPE WITH PERHAPS ONLY A MILD PICKUP IN THE SECOND HALF AND IN JAPAN WHICH HE SAID COULD STRUGGLE ALL YEAR BY CONTRAST HE SAID UNISYS IS ENCOURAGED BY ECONOMIC SIGNS IN THE US THOUGH THE MOST HE IS EXPECTING IN 1993 IS SLOW MODEST GROWTH MR UNRUH SAID UNISYS'S DEBT LOAD ONCE THE COMPANY'S MAIN CONCERN FELL BY ALMOST 800 MILLION DURING 1992 TO ABOUT 25 BILLION IF 700 MILLION CASH ON HAND WHICH UNISYS HAS BEEN HOARDING TO REASSURE CUSTOMERS WHO ARE SKITTISH ABOUT ITS FUTURE IS DEDUCTED THE FIGURE DROPS TO 18 BILLION MR UNRUH SAID UNISYS'S GOAL REMAINS TO REACH A DEBTEQUITY RATIO OF 25 WITHIN ONE TO TWO YEARS BUT SAID THE CURRENT RATIO IN THE MID40S IS NO LONGER ALARMING 9301180016 930118 TRANSMEDIA NETWORK AGREES WITH ESTIMATES ON FIRSTPERIOD NET NEW YORK TRANSMEDIA NETWORK INC THE PROVIDER OF DISCOUNTMEAL SERVICES FOR RESTAURANTGOERS SAYS IT'S COMFORTABLE WITH ANALYSTS' ESTIMATES IT WOULD EARN 12 TO 13 CENTS A SHARE FOR THE FISCAL FIRST QUARTER MELVIN CHASEN TRANSMEDIA'S CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT CONFIRMED THE EARNINGS PROJECTION IN AN INTERVIEW MR CHASEN SPOKE FROM TRANSMEDIA'S NEW YORK OFFICE THE COMPANY RECENTLY MOVED ITS HEADQUARTERS TO MIAMI THOSE PERSHARE ESTIMATES WOULD PUT TRANSMEDIA NETWORK'S NET INCOME AT 514800 TO 557700 BASED ON ABOUT 43 MILLION SHARES OUTSTANDING THAT WOULD REPRESENT AN EARNINGS RISE OF 50 TO 63 OVER THE YEAREARLIER QUARTER WHEN TRANSMEDIA REPORTED EARNINGS OF 285000 OR EIGHT CENTS A SHARE PERSHARE FIGURES ARE ADJUSTED TO REFLECT A 3FOR2 STOCK SPLIT LAST MARCH MR CHASEN DECLINED TO PROVIDE A REVENUE ESTIMATE FOR THE QUARTER BUT TRANSMEDIA CITED A REPORT BY ANALYST JOHN T MAHONEY OF RAYMOND JAMES & ASSOCIATES THAT ESTIMATED TRANSMEDIA'S REVENUE AT 87 MILLION MOST OF THAT 83 MILLION IS FROM SALES TO USERS OF ITS EXECUTIVE SAVINGS MEAL DISCOUNT CARD 360000 IN MEMBERSHIP FEES FOR CARDHOLDERS AND 80000 IN FRANCHISING FEES HE SAID TRANSMEDIA SAID IT WILL REPORT QUARTERLY RESULTS ON FEB 10 A SPECIALIZED CONSUMER FINANCE COMPANY TRANSMEDIA ADVANCES CASH TO RESTAURANTS IN EXCHANGE FOR FOOD AND BEVERAGE CREDITS EQUAL TO TWICE THE VALUE OF THE ADVANCE IN EFFECT GETTING A 50 DISCOUNT ON THE MEAL AND DRINK IT THEN RESELLS THE CREDITS TO CONSUMERS THROUGH THE EXECUTIVE SAVINGS CARD OFFERING THEM HALF ITS DISCOUNT OR 25 ON FOOD AND DRINKS BEFORE TAX AND TIPS TRANSMEDIA KEEPS THE DIFFERENCE IN THE DISCOUNT 9301180015 930118 BUSINESS BRIEF DAEWOO GROUP SHIPBUILDING UNIT EXPECTS ORDERS FROM US COMPANY SOUTH KOREA'S DAEWOO SHIPBUILDING AND HEAVY MACHINERY CO A UNIT OF DAEWOO GROUP SAID IT EXPECTS TO WIN ORDERS SOON FROM AMERICAN PRESIDENT LINES OF THE US TO BUILD TWO LARGESCALE CONTAINER SHIPS THE TWO SIDES ARE NOW AT A STAGE OF CONCLUDING THE DEAL SAID A DAEWOO OFFICIAL IN SEOUL DAEWOO HOPES TO BUILD SIX MORE CONTAINER SHIPS FOR THE US COMPANY ON AN OPTION BASIS DAEWOO'S ORDERS SO FAR THIS YEAR TOTAL 770 MILLION INCLUDING AN AGREEMENT LAST WEEK TO BUILD A 150 MILLION WATER INJECTION PROCESS PLATFORM FOR INDIA 9301180014 930118 ENTERTAINMENT AMERICAN QUITS CHAIRMAN POST AT EURO DISNEY BY DAVID J JEFFERSON AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL EURO DISNEY SCA CHAIRMAN ROBERT FITZPATRICK SAID HE WILL LEAVE THAT POST APRIL 12 TO BEGIN HIS OWN CONSULTING COMPANY REMOVING US MANAGEMENT FROM THE HELM OF THE FRENCH THEME PARK AND RESORT EURO DISNEY WHICH HAS BEEN A LIGHTNING ROD FOR CHARGES OF US CULTURAL IMPERIALISM SINCE ITS GROUND BREAKING WILL NOW BE HEADED BY A FRENCHMAN PHILIPPE BOURGUIGNON WHO WAS PROMOTED TO PRESIDENT LAST SEPTEMBER HE HAD BEEN EURO DISNEY'S SENIOR VICE PRESIDENT FOR REAL ESTATE MR BOURGUIGNON 45 YEARS OLD IS EXPECTED TO FOCUS HEAVILY ON MARKETING TO BOOST ATTENDANCE PARTICULARLY AMONG PARISIANS WHO HAVE GENERALLY SNUBBED THE PARK EURO DISNEY 49OWNED BY WALT DISNEY CO BURBANK CALIF ORIGINALLY BANKED ON 11 MILLION VISITORS IN THE FIRST YEAR OF OPERATION IT NOW APPEARS ATTENDANCE WILL BE CLOSER TO 10 MILLION ALREADY MANAGEMENT HAS TEMPORARILY SLASHED PRICES AT THE PARK FOR LOCAL RESIDENTS TO 150 FRANCS 2727 FROM 225 FRANCS 4091 FOR ADULTS AND TO 100 FRANCS FROM 150 FRANCS FOR CHILDREN TO LURE MORE FRENCH DURING THE SLOW WET WINTER MONTHS THE COMPANY ALSO HAS REDUCED PRICES AT ITS HOTELS AND RESTAURANTS THE PROMOTION OF MR BOURGUIGNON PUTTING A EUROPEAN MANAGER IN THE TOP SLOT WILL NO DOUBT HAVE A PUBLICRELATIONS BENEFIT FOR EURO DISNEY A PROJECT THAT HAS BEEN A PUBLICIST'S NIGHTMARE FROM THE BEGINNING ONE NEWS CONFERENCE PRIOR TO THE PARK'S OPENING DREW PROTESTORS WHO PELTED WALT DISNEY CHAIRMAN MICHAEL EISNER WITH ROTTEN EGGS A RAIL STRIKE CUT OFF SERVICE FROM PARIS FOR LAST APRIL'S OPENINGDAY FESTIVITIES DURING WHICH A SMALL BAND OF PICKETS CALLED MICKEY MOUSE A GREEDY RAT AND MORE RECENTLY FRENCH FARMERS MARCHED ON EURO DISNEY'S DOORSTEP TO PROTEST THE GENERAL AGREEMENT ON TARIFFS AND TRADE IT'S A WISE MOVE ON THEIR PART TO HAVE A LOCAL TO HEAD THE OPERATIONS THERE ESPECIALLY IF YOU'RE TRYING TO IMPROVE THE LEVEL OF ATTENDANCE OF THE FRENCH PEOPLE FROM A THIRD OF THE TOTAL TO A HALF OF THE TOTAL SAID LISBETH R BARRON AN ANALYST WITH SG WARBURG IN NEW YORK BETWEEN APRIL AND SEPTEMBER LAST YEAR THE FRENCH ACCOUNTED FOR JUST 29 OF THE PARK'S TOTAL VISITORS DISNEY'S MR EISNER SAID IN A RECENT INTERVIEW THAT THAT PERCENTAGE RECENTLY SHOT TO 60 BUT THAT IS LARGELY BECAUSE TOURISM TO FRANCE IS LOW DURING THE WINTER AND TOTAL DAILY ATTENDANCE IS LESS THAN HALF THE ESTIMATED 40000 TO 50000 THE PARK DREW DAILY OVER THE SUMMER THOUGH SOME ANALYSTS INTERPRETED MR FITZPATRICK'S SURPRISE ANNOUNCEMENT FRIDAY AS A FORCED DEPARTURE THE 52YEAROLD EXECUTIVE SAID HE HAS BEEN CONSIDERING THE MOVE SINCE EURO DISNEY OPENED HE TIMED THE APRIL 12 DEPARTURE HE SAID TO COINCIDE WITH THE FIRSTYEAR ANNIVERSARY OF THE PARK WHAT I DO BEST IS THE CONCEPTUALIZING CREATING AND PUTTING IN PLACE OF MAJOR PROJECTS SAID MR FITZPATRICK WHO WILL CONTINUE TO SERVE AS A DIRECTOR AND OUTSIDE CONSULTANT FOR EURO DISNEY HE ADDED THAT HE TENDS TO PURSUE COMMITMENTS OF INTENSITY AND NOT DURATION AND THAT I WAS GETTING ITCHY TO DO SOMETHING ELSE MR FITZPATRICK WHO PREVIOUSLY RAN THE 1984 LOS ANGELES OLYMPIC FESTIVAL AND THE CALIFORNIA INSTITUTE OF THE ARTS AN INSTITUTION HEAVILY SUPPORTED BY THE DISNEY FAMILY SAID HIS NEW CONSULTING BUSINESS WILL HELP NONFRENCH COMPANIES SET UP BUSINESS THERE URBANE MARRIED TO A FRENCH WOMAN AND FLUENT IN THE LANGUAGE MR FITZPATRICK WAS A KEY PLAYER IN WOOING SUPPORT FROM THE FRENCH ESTABLISHMENT FOR THE 4 BILLION EURO DISNEY PROJECT AS ONE ANALYST PUT IT DISNEY SELECTED HIM TO SET UP THE PARK BECAUSE HE IS MORE FRENCH THAN THE FRENCH EMPLOYEES AT EURO DISNEY ARE ONETHIRD AMERICAN ONETHIRD FRENCH AND ONETHIRD FROM OTHER EUROPEAN COUNTRIES BUT DISNEY HAD ALSO LONG SAID IT WANTED TO INSTALL MORE EUROPEAN LEADERSHIP AT THE TOP MR FITZPATRICK SAID MR EISNER TALKED HIM INTO STAYING FOR THE PARK'S FIRST FULL YEAR AND THEN OFFERED HIM SEVERAL OPPORTUNITIES IN THE US IN THE END MR FITZPATRICK ADDED HE DECLINED THE OFFERS SO HE COULD STAY IN FRANCE IN A PREPARED STATEMENT MR EISNER THANKED MR FITZPATRICK FOR HIS SIX YEARS OF SERVICE WITH EURO DISNEY WE WERE EXTREMELY FORTUNATE TO HAVE HAD THE UNIQUE TALENT AND SERVICES OF BOB FITZPATRICK DURING THE PERIOD WHEN WE MOVED EURO DISNEY FROM DREAM TO GLITTERING REALITY MR EISNER SAID THE PARIS STOCK EXCHANGE REACTED CALMLY TO THE NEWS AS EURO DISNEY SHARES ROSE TWO FRANCS TO 66 FRANCS IN FRIDAY'S TRADING JUST BELOW ITS 52WEEK HIGH OF 663 FRANCS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY WALT DISNEY SHARES ROSE 375 CENTS TO CLOSE AT 44875 WHILE ANALYSTS SAID THE CHANGING OF THE GUARD PROBABLY WON'T ALTER THE WAY EURO DISNEY IS RUN IT WON'T QUICKLY REVERSE THE COMPANY'S PROBLEMS EITHER EURO DISNEY REPORTED A NET LOSS OF 188 MILLION FRANCS IN ITS FISCAL YEAR ENDED SEPT 30 AND MR FITZPATRICK SAID HE EXPECTS IT WILL REPORT LOSSES FOR THE CURRENT FISCAL YEAR GOLDMAN SACHS ANALYST RICHARD SIMON SAID EURO DISNEY MAY LOSE A TOTAL OF 750 MILLION FRANCS THIS CURRENT FISCAL YEAR WITH AS MUCH AS A ONE BILLIONFRANC LOSS IN THE FIRST HALF ALONE I THINK DISNEY IS NOW GOING THROUGH A LEARNING CURVE AND THAT WILL RESULT IN SIGNIFICANT FIRSTHALF LOSSES A BREAKEVEN THIRD AND PROFITABILITY IN THE FOURTH MR SIMON SAID WE ARE RIGHT IN THE DEADCENTER OF THE TROUGH EURO DISNEY WILL REPORT FISCAL FIRSTQUARTER RESULTS ON JAN 26 DESPITE THE FRUSTRATIONS DISNEY'S MR EISNER HAS BEEN TIRELESSLY UPBEAT ABOUT THE PROJECT IN A RECENT INTERVIEW PRIOR TO MR FITZPATRICK'S ANNOUNCEMENT HE BOASTED OF THE INCREASED FRENCH ATTENDANCE AND NOTED THAT THE PARK MANAGED TO ATTRACT 49000 VISITORS ON NEW YEAR'S EVE DESPITE FREEZING WEATHER WE'VE GOTTEN THROUGH OUR FIRST COLD PERIOD VERY WELL HE SAID INSTANT HITS ARE THINGS THAT GO AWAY QUICKLY AND THINGS THAT GROW SLOWLY AND ARE PART OF THE CULTURE ARE WHAT WE LOOK FOR MR EISNER SAID WHAT WE CREATED IN FRANCE IS THE BIGGEST PRIVATE INVESTMENT IN A FOREIGN COUNTRY BY AN AMERICAN COMPANY EVER AND IT'S GONNA PAY OFF 9301180013 930118 O&Y CREDITORS VOTE TO SEIZE FLAGSHIP TOWER BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CREDITORS VOTED TO SEIZE OLYMPIA & YORK DEVELOPMENTS LTD'S FLAGSHIP CANADIAN OFFICE TOWER IN ONE OF THE FIRST STEPS BY THE COMPANY'S LENDERS TOWARD DISMANTLING THE INSOLVENT REAL ESTATE CONCERN THE MOVE CAME AS O&Y'S THREE DOZEN CLASSES OF CREDITORS VOTED LAST WEEK ON THE COMPANY'S PLAN TO RESTRUCTURE 7 BILLION IN DEBT RELATED TO ITS CANADIAN OPERATIONS O&Y HAS OPERATED UNDER CANADIAN BANKRUPTCY COURT PROTECTION SINCE MAY A REJECTION BY O&Y'S SECURED CREDITORS DOESN'T CHANGE THE PLAN HOWEVER THE PLAN MUST BE APPROVED BY THE COMPANY'S UNSECURED CREDITORS WHO ARE OWED ABOUT 3 BILLION THE VOTE BY THE UNSECURED LENDERS WHICH HAD BEEN SCHEDULED FOR FRIDAY WAS DELAYED UNTIL NEXT MONDAY TO RESOLVE SOME FINAL DISPUTES REJECTING THE PLAN FRIDAY WERE HOLDERS OF A 370 MILLION BOND ISSUE SECURED BY O&Y'S FIRST CANADIAN PLACE IN TORONTO WHO SAY THEY EXPECT TO GET THE BEST RETURN ON THEIR INVESTMENT BY TAKING POSSESSION OF THE BUILDING THE MOVE FOLLOWED A SIMILAR REJECTION OF THE O&Y PLAN EARLIER IN THE WEEK BY HOLDERS OF A 115 MILLION BOND ISSUE SECURED BY THE COMPANY'S FIFTH AVENUE PLACE A TWINTOWER COMPLEX IN CALGARY ALBERTA BOTH SETS OF BONDHOLDERS MAINLY INSURANCE COMPANIES AND PENSION FUNDS SAY THEY EXPECT TO HOLD THE PROPERTIES FOR THE LONG TERM AND ARE PREPARED TO USE FRESH CASH FOR INDUCEMENTS TO HELP ATTRACT NEW TENANTS TO THE BUILDINGS O&Y WILL STAY ON TO MANAGE BOTH PROPERTIES ALSO VOTING AGAINST THE PLAN WERE CREDITORS SECURED BY O&Y'S 50OWNED AMOCO CENTRE IN CALGARY BUT O&Y SAID IT IS CONTINUING NEGOTIATIONS TO RESOLVE THE OWNERSHIP OF THIS BUILDING WHICH IS ALSO HALF OWNED BY ALBERTA NATURAL GAS CO OF CALGARY A SPOKESMAN FOR BANK OF MONTREAL WHICH HOLDS THE BULK OF A 70 MILLION TERM LOAN SECURED BY AMOCO CENTRE SAID THE BANK REJECTED THE O&Y PLAN BECAUSE IT PROVIDED ONLY FOR INTEREST PAYMENTS TO BE MADE ON THE LOAN THE PRINCIPAL REPAYMENT WHICH IS DUE IN 1995 WOULD HAVE BEEN DELAYED HE SAID CREDITORS TO A HANDFUL OF OTHER O&Y BUILDINGS INCLUDING EXCHANGE TOWER IN TORONTO APPROVED THE COMPANY'S RESTRUCTURING PLAN WHILE SEVERAL LENDER GROUPS' MEETINGS WERE POSTPONED TO THIS WEEK UNDER TERMS OF THE PLAN SECURED LENDERS WHO APPROVE THE PACKAGE STILL HAVE THE RIGHT TO SEIZE THEIR COLLATERAL AT ANYTIME 9301180012 930118 FOREIGN EXCHANGE BRITISH POUND SHOWS SIGNS OF STRENGTH AS MARK SWISS FRANC EXPECTED TO FALL BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE BRITISH POUND DECRIED FOR MONTHS AS A LOST CAUSE IS SHOWING SIGNS OF STRENGTH OVER THE NEXT TWO MONTHS ECONOMISTS SAY STERLING SHOULD ADVANCE AGAINST THE GERMAN MARK AND SWISS FRANC AS FALLING INTEREST RATES DRIVE THOSE CURRENCIES LOWER THEREAFTER THE ECONOMISTS SAY THE POUND'S FATE WILL DEPEND ON THE SPEED WITH WHICH GERMAN RATES FALL AND THE STRENGTH OF BRITAIN'S ECONOMIC RECOVERY BUT EVEN THE MOST BEARISH ANALYSTS DON'T EXPECT THE POUND TO SINK FAR BELOW CURRENT LEVELS WHILE THE WORLD HAS BEEN EXTREMELY NEGATIVE ABOUT THE POUND BRITAIN IS THE ONLY COUNTRY WHICH SHOWS ANY SIGNS OF EMERGING FROM RECESSION SAID JIM O'NEILL HEAD OF RESEARCH AT SWISS BANK CORP INTERNATIONAL IN LONDON INDICATIONS OF A SHIFT IN SENTIMENT TOWARD STERLING APPEARED LAST WEEK THE POUND GAINED AGAINST THE DOLLAR MONDAY DRIVEN INITIALLY BY MIDDLE EAST INVESTORS WORRIED ABOUT ESCALATING TENSION IN THE PERSIAN GULF AND SUSTAINED BY UNDERLYING OPTIMISM ABOUT BRITAIN'S ECONOMY TRADERS SAID BY THE END OF THE WEEK THE POUND HAD GIVEN BACK ITS GAINS AND THEN SOME AS TENSIONS IN BOTH THE MIDDLE EAST AND THE EUROPEAN MONETARY SYSTEM HAD EASED LATE FRIDAY IN NEW YORK THE POUND TRADED AT 15305 DOWN FROM 15540 MONDAY AND 15420 LATE THE PREVIOUS WEEK AGAINST THE MARK LATE FRIDAY THE POUND WAS TRADING AT 25034 DOWN FROM 25389 THE PREVIOUS WEEK THE DOLLAR TRADED LATE FRIDAY AT 16357 MARKS AND 12608 YEN COMPARED WITH 16465 MARKS AND 12535 YEN AT THE END OF THE PREVIOUS WEEK ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16366 MARKS AND AT 12582 YEN EXPECTATIONS OF A STRONGER POUND WERE EVIDENT IN THE EUROBOND MARKET HEAVY ISSUANCE OF STERLINGDENOMINATED SECURITIES THURSDAY SUGGESTED INVESTORS ARE BETTING THEY WILL BE PAID IN MORE VALUABLE POUNDS IN THE COMING MONTHS ECONOMISTS SAY INTERESTRATE EXPECTATIONS ARE DRIVING THE OPTIMISM ABOUT STERLING WHILE MARKET PLAYERS EXPECT BRITAIN TO CUT ITS BASE LENDING RATE ONE PERCENTAGE POINT WHEN A NEW BUDGET IS PROPOSED IN MARCH THEY BELIEVE IT WILL BE THE LAST CUT FOR THIS ECONOMIC CYCLE BY CONTRAST INVESTORS ARE LOOKING FOR DEEPER CUTS IN GERMAN RATES THROUGHOUT THE YEAR AS THE THREAT OF INFLATION SUBSIDES GERMAN RATE CUTS HAVE YET TO MATERIALIZE SAID SANDY BATTEN SENIOR ECONOMIST AT CITIBANK SO WHAT HAPPENS IS YOU GET THE GERMANUK INTERESTRATE DIFFERENTIAL NARROWING OVER THE NEXT SIX MONTHS STERLING WOULD BE FAIRLY VALUED AT ABOUT 270 MARKS HE SAID SWISS INTEREST RATES ALSO APPEAR TO BE HEADED LOWER LEADING SOME ECONOMISTS TO PREDICT THAT THE POUND COULD ADVANCE TO 240 FRANCS FROM 229 FRANCS LATE FRIDAY ALTHOUGH NO ONE SAYS THE BRITISH ECONOMY IS TURNING INTO A POWERHOUSE RECENT DATA SUGGEST THAT IT IS REVIVING RETAIL SALES PICKED UP OVER THE HOLIDAYS MONEY SUPPLY GROWTH IS NEAR THE TOP OF ITS TARGET RANGE AND ANECDOTAL EVIDENCE FROM THE HOUSING SECTOR REFLECTS MORE ACTIVITY SAID MR O'NEILL OF SWISS BANK STERLING COULD RISE TO 260 MARKS OVER THE NEXT TWO MONTHS HE SAID SOME ANALYSTS ALSO CONSIDER THE POUND OVERSOLD FOLLOWING ITS DEVALUATION IN SEPTEMBER WHEN THE CURRENCY WAS SUSPENDED FROM THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM ECONOMISTS SAY SINCE THEN DEALERS HAVE SOLD STERLING AGGRESSIVELY DRIVING IT DOWN 24 AGAINST THE DOLLAR AND 10 AGAINST THE MARK INEVITABLY WHEN THERE ARE BIG CHANGES IN THE MARKETS CURRENCIES TEND TO OVERSHOOT SAID JONATHAN HOFFMAN DIRECTOR OF ECONOMICS AT CREDIT SUISSE FIRST BOSTON LTD IN LONDON NOW WE'RE SEEING A REAPPRAISAL ECONOMISTS CAUTION THAT ECONOMIC TROUBLES AND THE CALMING OF TENSIONS WITHIN THE EUROPEAN MONETARY SYSTEM COULD SET STERLING BACK I DON'T THINK THAT STERLING IS OUT OF THE WOODS YET SAID ERIC NICKERSON FOREIGNEXCHANGE ECONOMIST AT BANK OF AMERICA ALTHOUGH BRITAIN'S ECONOMY DOES SHOW SIGNS OF TURNING AROUND MR NICKERSON SAID THEY'RE NOT CONCLUSIVE THE SAME HESITANCIES WE HAVE ABOUT THE US ECONOMY I'D HAVE ABOUT THE UK ECONOMY HE SAID STERLING GAVE BACK LAST WEEK'S GAINS WHEN IT SEEMED THAT THE PERSIAN GULF WOULD NOT ERUPT AND AS TENSIONS EASED WITH THE ERM MR NICKERSON POINTS OUT IF THE ERM GETS BACK ON TRACK HE SAID STERLING WILL LOSE SOME OF THE APPEAL IT HAS GAINED SINCE WITHDRAWING IF THINGS SETTLE DOWN IN EUROPE WHAT IS THE ATTRACTION OF STERLING HE SAID ON THE BASIS OF ECONOMIC FUNDAMENTALS AND THE POWER OF DEBT SECURITIES TO DRAW IN CAPITAL HE SAID THE FRENCH FRANC WOULD BE MORE ALLURING A MARCH CUT IN INTEREST RATES WOULD ALSO HURT STERLING ECONOMISTS SAY IT COULD DRIVE THE POUND BACK TO ITS CURRENT LEVEL OF ABOUT 250 MARKS SAID MR O'NEILL THE IMPACT OF A CUT WOULD DEPEND IN LARGE PART ON GERMAN RATES STERLING WOULD BE BETTER ABLE TO WITHSTAND A CUT IN BRITISH RATES IF GERMAN RATES FELL AS WELL ECONOMISTS GENERALLY EXPECT THE BUNDESBANK TO CUT RATES THIS YEAR BUT THEIR ESTIMATES OF THE LIKELY TIMING VARY FROM FEBRUARY TO LATE SPRING MR HOFFMAN OF CREDIT SUISSE FIRST BOSTON THINKS KEY GERMAN RATES ARE LIKELY TO BE ONEHALF TO ONE POINT LOWER BY MIDMARCH BASED ON ECONOMIC WEAKNESS AND PROGRESS TOWARD A SOLIDARITY PACT AMONG THE POLITICAL PARTIES AND UNIONS THAT SHOULD KEEP STERLING UP HE SAID 9301180011 930118 BANKAMERICA CLOSE TO SELLING SOME BAD ASSETS BY MITCHELL PACELLE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL BANKAMERICA CORP IS CLOSE TO SELLING AS MUCH AS 2 BILLION IN BAD REAL ESTATE LOANS AND PROPERTIES THE STRONGEST SIGN YET THAT CAPITAL IS RETURNING TO THE REAL ESTATE MARKET THE PROSPECTIVE BUYER ACCORDING TO INDIVIDUALS FAMILIAR WITH THE PLAN IS MORGAN STANLEY REALTY FUND A PARTNERSHIP OF INSTITUTIONAL INVESTORS FORMED BY THE INVESTMENT BANKING COMPANY IT PLANS TO BUY THE VAST MAJORITY IF NOT ALL OF THE BANK'S TROUBLED REAL ESTATE ASSETS SAID ONE OF THE INDIVIDUALS BANKAMERICA BASED IN SAN FRANCISCO COULD WIND UP WITH ROUGHLY 1 BILLION BASED ON THE DISCOUNTS OF 40 TO 60 OFF THE FACE VALUE SUCH PORTFOLIOS HAVE EXCHANGED HANDS AT RECENTLY THE TRANSACTION PROVIDES FURTHER EVIDENCE THAT THE FLOW OF CAPITAL BACK INTO THE REAL ESTATE MARKET IS INCREASING LATELY SEVERAL LARGE BANKS HAVE SOLD TROUBLED LOANS AT WHAT MAY BE THE MARKET'S BOTTOM TO INVESTORS WILLING TO TAKE THE RISK THAT PRICES WILL NOT DROP FURTHER BANKAMERICA HAS BEEN PREPARING FOR SUCH A SALE BY WRITING DOWN THE VALUE OF ITS TROUBLED REAL ESTATE ABOUT 50 OVER RECENT QUARTERS THUS IF THE SALE TAKES PLACE AT ROUGHLY HALF OF THE FACE VALUE THE BANKING COMPANY WON'T INCUR ANY FURTHER WRITEDOWNS IF THEY CAN DEMONSTRATE THE ABILITY TO GET OUT OF THE PROBLEM ASSETS AT THE LOSS PARAMETERS THEY'VE EXPECTED THAT WOULD BE A BIG POSITIVE FOR THE BANK SAID ANALYST JUDAH KRAUSHAAR WHO FOLLOWS THE COMPANY FOR MERRILL LYNCH & CO IT IS NOT CLEAR WHETHER MORGAN STANLEY OR BANKAMERICA WILL MANAGE THE ASSETS AFTER THEY ARE SOLD FOR SOME TIME BANKAMERICA HAS SAID IT INTENDS TO SET UP A BAD BANK TO HOLD AS MUCH AS 4 BILLION IN PROBLEM ASSETS THE MAJORITY OF WHICH WOULD BE SOLD TO OUTSIDE INVESTORS ABOUT HALF THE AMOUNT WAS TO BE REAL ESTATE ASSETS MUCH OF IT ACQUIRED THROUGH THE BANK'S MERGER WITH SECURITY PACIFIC CORP OFFICIALS AT MORGAN STANLEY BANKAMERICA AND THE BANK'S ADVISER GOLDMAN SACHS & CO DECLINED TO COMMENT OTHER BANKS HAVE BEEN PRAISED BY WALL STREET FOR SHEDDING TROUBLED REAL ESTATE ALTHOUGH IT IS UNCLEAR WHETHER SELLING AT ROCKBOTTOM PRICES IS BEST FOR SHAREHOLDERS IN THE LONGRUN ONE YEAR AGO NATIONSBANK OF CHARLOTTE NC SOLD ABOUT 200 MILLION IN BAD REAL ESTATE LOANS FOR ABOUT 50 OF THEIR FACE VALUE IN SEPTEMBER FIRST CHICAGO CORP ANNOUNCED AN AGGRESSIVE PLAN TO SELL ABOUT 2 BILLION IN BAD LOANS AND PROPERTY AND DISCLOSED LAST WEEK THAT IT HAD SOLD ROUGHLY 190 MILLION OF THEM IN DECEMBER FLEET FUNDING SOLD 525 MILLION IN PROBLEM REAL ESTATE ASSETS FOR 50 TO 55 OF THEIR FACE VALUE NOT ALL BANKS ARE AS PREPARED TO SELL TROUBLED ASSETS OUTRIGHT BECAUSE THEY HAVE YET TO WRITE THEM DOWN TO MARKET VALUES AND SOME THAT HAVE TAKEN LARGE WRITEDOWNS WOULD RATHER HOLD THE ASSETS AND ATTEMPT TO RECOVER THEIR LOANS THAN SELL AT DISTRESSED PRICES CITICORP FOR INSTANCE SAYS IT CARRIES PROBLEM REAL ESTATE AT 55 CENTS ON THE DOLLAR BELIEVES SHAREHOLDERS ARE BETTER OFF IF THE COMPANY MANAGES THE PROPERTIES AND TRIES TO RECOUP ITS INVESTMENTS FOR MORGAN STANLEY A UNIT OF MORGAN STANLEY GROUP INC OF NEW YORK THE ACQUISITION REPRESENTS ITS SECOND AND LARGEST INVESTMENT IN DISTRESSED REAL ESTATE A RISKY INVESTMENT SECTOR WITH THE POTENTIAL FOR VERY HIGH RETURNS IN 1991 MORGAN STANLEY RAISED ABOUT 800 MILLION IN EQUITY INCLUDING MORE THAN 50 MILLION OF ITS MONEY TO LAUNCH THE FUND LAST FEBRUARY TOGETHER WITH FLORIDA HOME BUILDER LENNAR CORP THE FUND BOUGHT A 900 MILLION FLORIDA REAL ESTATE PORTFOLIO FROM THE RESOLUTION TRUST CORP FOR 450 MILLION THE STRATEGY OF MOST BUYERS OF DISTRESSED REAL ESTATE PORTFOLIOS HAS BEEN TO REVIEW EACH LOAN IN THE PORTFOLIO THEN NEGOTIATE NEW TERMS WITH THE BORROWER OR FORECLOSE ON THE PROPERTY AND SELL IT THE BANKAMERICA PORTFOLIO INCLUDES A GREAT DEAL OF CALIFORNIA COMMERCIAL REAL ESTATE A MARKET WHICH HAS BEEN IN A PROLONGED SLUMP RALPH T KING JR CONTRIBUTED TO THIS ARTICLE 9301180010 930118 NEWS PUBLISHERS EXPECTED TO POST MIXED EARNINGS CLASSIFIED ADS REBOUND IN SOME MAJOR MARKETS RETAIL AREA DISAPPOINTS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL MANY MAJOR NEWSPAPER COMPANIES WERE DISAPPOINTED WITH THE LEVEL OF ADVERTISING SPENDING FROM SPECIALTY AND DEPARTMENT STORE RETAILERS IN THE FOURTH QUARTER THOUGH RETAIL SPENDING IN SOME METROPOLITAN MARKETS PICKED UP DURING THE CHRISTMAS SEASON THE RESULT MIXED FOURTHQUARTER EARNINGS FOR THE PUBLISHERS BUT THERE ARE SOME POSITIVE SIGNS SUCH AS CLASSIFIED ADVERTISING LEVELS WHICH APPEAR TO BE BUILDING AT MANY LARGE METROPOLITAN NEWSPAPERS AND WHICH ARE EXPECTED TO CONTINUE GROWING THIS YEAR THE STRONG CHRISTMAS FOR RETAILERS WILL FIND ITS WAY INTO NEWSPAPER ADVERTISING BY EASTER SAYS RAYMOND L KATZ ANALYST FOR SHEARSON LEHMAN BROTHERS FOR NOW RETAILERS WANT TO SEE IF THIS RECOVERY IS SUSTAINABLE RETAILERS AREN'T GOING TO ORDER WEEKS OF ADVERTISING JUST BECAUSE THEY HAD A GOOD CHRISTMAS ANALYSTS NOTED HOWEVER THAT PUBLISHERS WILL NEED TO PRODUCE REAL REVENUE GAINS FROM BOTH ADVERTISING AND CIRCULATION TO KEEP ANY SIGNIFICANT EARNINGS GROWTH ALIVE THIS YEAR NEWSPRINT COSTS ARE EXPECTED TO INCREASE IN RECENT QUARTERS PUBLISHERS REAPED MAJOR COST SAVINGS BECAUSE NEWSPRINT PRICES AND DEMAND WERE AT THEIR LOWEST IN YEARS GANNETT CO THE COUNTRY'S LARGEST NEWSPAPER PUBLISHER BASED IN ARLINGTON VA IS EXPECTED TO REPORT EARNINGS FROM CONTINUING OPERATIONS RANGING BETWEEN 80 CENTS AND 82 CENTS A SHARE COMPARED WITH 68 CENTS A SHARE IN THE 1991 QUARTER SHEARSON'S MR KATZ SAYS GANNETT'S RESULTS REFLECT ITS BROAD ARRAY OF PAPERS IN VARIOUS REGIONS AND THAT WITH SEVERAL PAPERS IN MID TO SMALLERSIZED MARKETS GANNETT HAS GREATER PRICING FLEXIBILITY THAN PUBLISHERS CONCENTRATED IN MAJOR METROPOLITAN MARKETS GANNETT ALSO SEEMS TO BE WHITTLING AWAY AT THE LOSSES OF USA TODAY ITS NATIONAL WEEKDAY NEWSPAPER ANALYSTS EXPECT USA TODAY'S LOSSES TO BE ABOUT 10 MILLION IN 1992 OR ABOUT HALF OF WHAT THEY WERE IN 1991 MR KATZ SAYS HE EXPECTS THE 10YEAROLD PAPER TO MAKE A SLIGHT PROFIT IN 1993 MIAMIBASED KNIGHTRIDDER INC IS EXPECTED TO REPORT EARNINGS FROM CONTINUING OPERATIONS OF 93 CENTS A SHARE COMPARED WITH 86 CENTS A SHARE FOR THE 1991 QUARTER PETER P APPERT ANALYST FOR CJ LAWRENCE SAID WHILE THAT ESTIMATE IS LESS THAN WHAT WAS EXPECTED A FEW MONTHS AGO THE KNIGHTRIDDER PAPERS OVERALL SHOWED A STRONG DECEMBER IN CLASSIFIED AND RETAIL AD LINAGE AND REVENUE MR APPERT NOTED THAT CLASSIFIED AD REVENUE ROSE AT A DOUBLEDIGIT RATE IN DECEMBER AT KNIGHTRIDDER PAPERS WHICH INCLUDE THOSE IN PHILADELPHIA AND MIAMI WE HAVEN'T SEEN THAT FOR YEARS SAID MR APPERT IF IT CAN BE SUSTAINED IN 1993 WE ARE OFF TO THE RACES CHICAGO'S TRIBUNE CO IS EXPECTED TO REPORT PRIMARY EARNINGS FOR THE QUARTER OF 65 CENTS A SHARE COMPARED WITH 44 CENTS FOR THE 1991 FOURTH QUARTER TRIBUNE IS EXPECTING IMPROVED OPERATING PROFIT FROM ITS BROADCASTING ENTERTAINMENT AND NEWSPAPER SEGMENTS IT ALSO IS EXPECTING A ONETIME GAIN OF ABOUT 10 CENTS A SHARE FROM PROFESSIONAL BASEBALL EXPANSION REVENUE TRIBUNE CO OWNS THE NATIONAL LEAGUE'S CHICAGO CUBS ANALYSTS ALSO REPORT IMPROVED ADVERTISING LEVELS AT THE FLAGSHIP CHICAGO TRIBUNE AND STRONG REVENUE GAINS IN THE TV STATION GROUP MOST NOTABLY AT WPIX IN NEW YORK WHOSE RATINGS AND REVENUE ARE OUTPACING THE TV INDUSTRY THE OPERATING LOSS FROM THE COMPANY'S CANADIAN NEWSPRINT DIVISION IS EXPECTED TO BE ABOUT 6 MILLION FOR THE QUARTER OR ABOUT HALF OF THE LOSS IN THE 1991 QUARTER TRIBUNE CO HAS SAID IT WILL SELL A PORTION OF ITS EQUITY IN THE OPERATION SINCE IT'S NO LONGER OWNER OF THE NEW YORK DAILY NEWS THE COMPANY SAID IT WOULD ATTEMPT TO BRING INTO BALANCE ITS OWNERSHIP OF NEWSPRINT MANUFACTURING WITH ITS CONSUMPTION FOR NEW YORK TIMES CO ANALYSTS ESTIMATE EARNINGS FOR THE QUARTER OF ABOUT 28 CENTS A SHARE EXCLUDING ITEMS COMPARED WITH 32 CENTS A SHARE FOR THE 1991 QUARTER HOWEVER THE COMPANY HAS SAID THAT EXCLUDING ACCOUNTING CHANGES AND SPECIAL FACTORS EARNINGS WILL BE IN RANGE OF 14 CENTS TO 24 CENTS A SHARE KENNETH T BERENTS ANALYST WITH ALEX BROWN & SONS NOTED THE COMPANY'S FLAGSHIP NEW YORK TIMES CONTINUES TO BE HURT BY A NEW YORK CITY ECONOMY THAT IS LAGGING BEHIND THE RECOVERY NEW YORK'S NOT GETTING ANY WORSE BUT IT'S ALSO NOT GETTING BETTER CJ LAWRENCE'S MR APPERT SAID AD LINAGE FIGURES AT THE TIMES STARTED THE YEAR STRONG BUT SLOWED AS 1992 WENT ON ESPECIALLY IN REAL ESTATE AND FROM SMALLER SPECIALTY RETAILERS IF THERE IS SOME SIGN OF LIFE IN THE NEW YORK ECONOMY THEY WILL BE OFF AND RUNNING HE SAID TIMES MIRROR CO OF LOS ANGELES IS EXPECTED TO REPORT PERSHARE EARNINGS FROM CONTINUING OPERATIONS OF 42 CENTS TO 47 CENTS A SHARE AGAINST 42 CENTS FOR THE 1991 QUARTER WHILE ITS PAPERS IN BALTIMORE AND HARTFORD CONN SHOWED SOME IMPROVEMENTS IN THE QUARTER ADVERTISING HAS BEEN SOFT AT LONG ISLAND NYBASED NEWSDAY AND EVEN MORE SO AT THE FLAGSHIP LOS ANGELES TIMES WHICH IS SURROUNDED BY THE DEEPENING REGIONAL RECESSION SOUTHERN CALIFORNIA IS IN AN ECONOMIC MUDSLIDE AND IT MAY NOT LOOK BETTER UNTIL 1994 SAID MR BERENTS IN THE QUARTER AS IT LOOKED TO CUT COSTS TIMES MIRROR DISCONTINUED ITS FLAGSHIP PAPER'S 14YEAROLD SAN DIEGO EDITION OF THE LOS ANGELES TIMES REPRESENTING AN ANNUAL SAVINGS OF 8 MILLION AND ANNOUNCED A SEVERANCE PLAN INTENDED TO REDUCE THE NEWSPAPER'S TOTAL EMPLOYMENT BY ABOUT 7 IN 1993 9301180009 930118 OUTSIDER GAINS IN AMERICAN EXPRESS SEARCH BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL THE CHIEF EXECUTIVE OF A MAJOR CONSUMERPRODUCTS COMPANY IS EMERGING AS A LEADING CANDIDATE TO SUCCEED JAMES ROBINSON III AS CHAIRMAN AND CHIEF EXECUTIVE OF AMERICAN EXPRESS CO GROWING SUPPORT FOR THE EXECUTIVE WHOSE IDENTITY WASN'T DISCLOSED ON THE COMMITTEE CONDUCTING THE SEARCH COULD FORCE A SHOWDOWN BETWEEN DIRECTORS ALLIED BEHIND HARVEY GOLUB PRESIDENT OF THE FINANCIALSERVICES COMPANY AND THOSE SEEKING A MORE SEASONED CHIEF EXECUTIVE THE BOARD IS SCHEDULED TO MEET NEXT SUNDAY EVENING AND THE FOLLOWING DAY THE EXECUTIVE ACCORDING TO A PERSON CLOSE TO THE SEARCH COMMITTEE IS ONE OF TWO EXCELLENT GUYS BOTH ASSOCIATED WITH FIXING THINGS AT THEIR COMPANIES WHO HAVE BEEN UNDER REVIEW SINCE BEFORE CHRISTMAS HE DECLINED TO IDENTIFY THEM NEITHER IS FROM A FINANCIAL SERVICES COMPANY INDICATING THAT CONSUMER MARKETING AND IMAGE BUILDING ARE CONSIDERED THE MOST IMPORTANT TASKS AT HAND WHILE ONE OF THE EXECUTIVES IS CONSIDERED AHEAD OF THE OTHER IN THE RUNNING THE PERSON CLOSE TO THE COMMITTEE SAID BOTH ARE CHIEF EXECUTIVES OF MAJOR CONSUMERPRODUCT COMPANIES AND HAVE PROVEN THEMSELVES IN LEADING THEIR COMPANIES TO OVERCOME SIGNIFICANT PROBLEMS ONE IS IN HIS EARLY 50S THE OTHER IN HIS MID50S AND BOTH ARE KNOWN FOR THEIR HANDSON MANAGEMENT STYLES HE SAID THE NEXT BOARD MEETING IS LIKELY TO BE ACT II OF THE DRAMA THAT SUDDENLY UNFOLDED AT A DINNER MEETING THE NIGHT BEFORE THE BOARD MET IN SEPTEMBER AND UNCEREMONIOUSLY CALLED FOR A SEARCH TO BEGIN THAT COULD BRING ABOUT THE QUICK REMOVAL OF MR ROBINSON 57 YEARS OLD THE PERSON CLOSE TO THE SEARCH COMMITTEE SAID THE FIVEMEMBER GROUP IS CLOSE TO A CONSENSUS ON ONE OF THE CANDIDATES BUT THAT IT COULD FALL APART OVER TERMS AND THE DUEDILIGENCE CHECK RICHARD FURLAUD COCHAIRMAN OF THE COMMITTEE AND FORMER CHAIRMAN OF BRISTOLMYERS INC DECLINED TO COMMENT WHEN REACHED AT HIS FLORIDA HOME BOARD MEMBERS WHO ARE EAGER TO NAME AN OUTSIDER AS CHIEF EXECUTIVE ACCORDING TO PERSONS CLOSE TO THE BOARD INCLUDE DAVID CULVER RETIRED CHAIRMAN OF ALCAN ALUMINIUM LTD RAWLEIGH WARNER JR RETIRED CHAIRMAN OF MOBIL CORP JOHN BYRNE CHAIRMAN OF FUND AMERICAN COMPANIES INC AND WILLIAM BOWEN PRESIDENT OF THE ANDREW W MELLON FOUNDATION ALSO BELIEVED ON THEIR SIDE IS HOWARD CLARK SR A FORMER AMERICAN EXPRESS CHAIRMAN AND AN ADVISER WHO ATTENDS BOARD MEETINGS MR BYRNE DECLINED COMMENT WHEN ASKED ABOUT THE REPORT AND THE OTHERS DID NOT RETURN PHONE CALLS OR COULDN'T BE REACHED BUT THE DISSIDENTS ALONE DON'T HAVE THE VOTES ON THE 19MEMBER BOARD TO BRING IN AN OUTSIDER SAYS ONE BOARD MEMBER WHO ASKED NOT TO BE IDENTIFIED HE ADDED THAT THE SWING FACTOR COULD BE IF JIM ROBINSON AGREES TO GO TO THE OUTSIDE FOR HIS SUCCESSOR MR ROBINSON WHO IS COCHAIRMAN OF THE SEARCH COMMITTEE HAD BEEN GROOMING MR GOLUB TO BE HIS REPLACEMENT MANY OF THE BOARD MEMBERS REMAIN LOYAL TO MR ROBINSON DESPITE AGREEING TO THE CALL FOR A NEW CHIEF EXECUTIVE SOON EFFORTS TO REACH MR ROBINSON WERE UNSUCCESSFUL THE BOARD MEMBER ADDED THAT IF MR ROBINSON ACCEDES TO THE CALL FOR AN OUTSIDER SOMETHING HAS TO BE DONE TO KEEP HARVEY INDEED MR GOLUB 53 HAS WON HIGH MARKS FOR REENGINEERING THE COMPANY'S CORE TRAVEL RELATED SERVICES BUSINESS HOME OF THE OPTIMA CREDIT CARD AND AMERICAN EXPRESS'S CHARGE CARDS SINCE TAKING OVER AS CHAIRMAN OF THE UNIT IN THE FALL OF 1991 HE HAS LAUNCHED A 1 BILLION COSTCUTTING PLAN TAKEN A MORE FLEXIBLE APPROACH TO MERCHANT CHARGES AND SUPPORT AND BOOSTED CARD SPENDING THROUGH INNOVATIVE PROMOTIONS THE LEVEL OF SUPPORT FOR HIM ON THE BOARD IS NOT CLEAR ON THURSDAY DREW LEWIS A DIRECTOR AND CHIEF EXECUTIVE OF UNION PACIFIC CORP SAID IF WE HAD A VOTE HARVEY WOULD WIN BUT HE ADDED HE WAS NOT SURE IF THERE WERE YET ENOUGH VOTES FOR A CONSENSUS INDICATING THAT WOULD BE NECESSARY FOR A FINAL DECISION MR LEWIS ADDED THAT HE DOES NOT FEEL AMERICAN EXPRESS IS IN CRISIS AND THAT HE WOULD BE SATISFIED IF IT TOOK SIX MONTHS OR EVEN A YEAR TO NAME A NEW CHIEF EXECUTIVE WHILE MR ROBINSON AND MR GOLUB CONTINUE TO HEAD THE COMPANY MR LEWIS DECLINED TO DISCUSS ANYTHING ABOUT THE QUALIFICATIONS OF ANY OTHER CANDIDATES FOR THE JOB MR LEWIS SAID SATURDAY THAT THE SITUATION HAD CHANGED SINCE THE TIME I TALKED AND THAT HE NO LONGER FELT AS CONFIDENT ABOUT MR GOLUB'S CHANCES HE DECLINED TO SAY WHY OTHER THAN REFERRING TO NEW INFORMATION AND AN ALTERNATIVE CANDIDATE MR LEWIS WOULD ONLY CONFIRM THAT THERE ARE TWO SERIOUS OUTSIDE CANDIDATES BUT HE ADDED THAT MOST OF THE BOARD PROBABLY DID NOT YET KNOW THE NAMES OF THE OUTSIDE CANDIDATES HE DECLINED TO COMMENT FURTHER ON THEIR CHANCES SAYING THESE ARE MATTERS FOR THE BOARD NOT THE PRESS TO DISCUSS AN ALTERNATIVE TO MR GOLUB IS BEING SOUGHT THE PERSON CLOSE TO THE COMMITTEE SAID BECAUSE HARVEY IS LIKE THE SOPHOMORE AT WEST POINT WHO IS GETTING ALL A'S BUT SUCH A GREAT COMPANY AS AMERICAN EXPRESS NEEDS A GENERAL WHO HAS ALREADY FOUGHT A FEW WARS HE ADDED THAT AN OFFER THAT MIGHT BE MADE TO KEEP HIM AT THE COMPANY IS AN UNDERSTANDING THAT IF HE PERFORMS WELL FOR THREE TO FIVE YEARS THE TOP POST MIGHT THEN BECOME AVAILABLE BUT THE ONGOING ROLE OF MR GOLUB HAS NOT YET BEEN DISCUSSED AT LENGTH WITH THE CANDIDATES HE ADDED AMERICAN EXPRESS HAD BEEN BUFFETED BY LARGE LOSSES IN THE CARD DIVISION AND AT A NUMBER OF THE FINANCIAL BUSINESSES MR ROBINSON HAD DIVERSIFIED THE CHARGECARD GIANT INTO DURING HIS 15YEAR REIGN THE FLAGSHIP AMERICAN EXPRESS CARD THE CENTER OF THE TRAVEL RELATED SERVICES UNIT ALSO HAS BEEN UNDER SIEGE FROM FIERCE CREDIT CARD COMPETITION AT THE CUSTOMER AND MERCHANT LEVELS LARGE STOCKHOLDERS OF AMERICAN EXPRESS ARE EAGER FOR THE CHIEF EXECUTIVE UNCERTAINTY TO BE RESOLVED SAYS ALISON DEANS AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO I HEAR FROM A LOT OF LARGER HOLDERS OF THE STOCK THAT THEY WANT THE COMPANY TO DO SOMETHING NOT LEAVE THE SITUATION IN LIMBO SHE ADDS THAT ALTHOUGH SHE BELIEVES THE CARD DIVISION AND THE REST OF THE COMPANY ARE ABOUT TO REPORT A FAIRLY GOOD QUARTER THERE ARE A LOT OF PRESSING ISSUES WHEN THERE IS NOT CLEAR DECISIVE ACTION TIME IS AGAINST THEM THE HEAD OF ONE OF THE FIVE LARGEST INSTITUTIONAL HOLDERS OF AMERICAN EXPRESS STOCK HOWEVER NOT ONLY WANTS THE ISSUE RESOLVED BUT SAYS HE WANTS TO SEE MR GOLUB CHOSEN ALTHOUGH HE HAS NOT COMMUNICATED WITH THE BOARD HE SAYS I'D BE SURPRISED IF THEY GO OUTSIDE I HAVE A LOT OF CONFIDENCE IN HIM IF THE BOARD CANNOT REACH AGREEMENT HOWEVER ONE POSSIBILITY SAY OBSERVERS IS FOR IT TO NAME A DIRECTOR AS CHAIRMAN WITH THE CHIEF EXECUTIVE TITLE GOING TO MR GOLUB SUCH A SPLIT RECENTLY TOOK EFFECT AT GENERAL MOTORS CORP THE LIKELY BOARD CANDIDATE IS BELIEVED TO BE MR BYRNE A STRONG ADVOCATE OF GETTING VALUE FOR SHAREHOLDERS WHO ALSO IS CLOSE TO WARREN BUFFETT A MAJOR AMERICAN EXPRESS INVESTOR PETER PAE CONTRIBUTED TO THIS ARTICLE RICHARD FURLAUD IS A FORMER PRESIDENT OF BRISTOLMYERS SQUIBB CO AND A FORMER CHAIRMAN OF SQUIBB CO HE WAS INCORRECTLY IDENTIFIED AS A FORMER CHAIRMAN OF BRISTOLMYERS INC IN AN ARTICLE MONDAY ABOUT AMERICAN EXPRESS CO 9301180008 930118 TRADING UP MANY US COMPANIES EXPECT STRONG EXPORTS DESPITE TALK OF SLUMP THEY SAY WEAKNESS IN JAPAN GERMANY WILL BE OFFSET BY LATIN AMERICAN GAINS SURPRISES IN CONSUMER GOODS BY AL EHRBAR STAFF REPORTER OF THE WALL STREET JOURNAL NEARLY EVERYONE IS WORRIED ABOUT A POSSIBLE SLUMP IN US EXPORTS THIS YEAR NEARLY EVERYONE THAT IS EXCEPT A LOT OF US EXPORTERS LINCOLN ELECTRIC CO A CLEVELAND MANUFACTURER OF ARC WELDING PRODUCTS ISN'T ALARMED BY ALL THE TALK THAT WEAKNESS IN GERMANY AND JAPAN WILL DIM WHAT HAS BEEN THE BRIGHTEST SECTOR OF THE US ECONOMY IN RECENT YEARS LINCOLN'S EXPORTS ROSE 135 LAST YEAR TO 92 MILLION AND IT EXPECTS A COMPARABLE INCREASE THIS YEAR AND PERHAPS BIGGER GAINS IN 1994 AND 1995 WE DO MORE BUSINESS IN KOREA AND SINGAPORE THAN IN JAPAN SAYS RICHARD SABO ASSISTANT TO THE CHIEF EXECUTIVE GEORGIAPACIFIC CORP ALSO IS UNDAUNTED BY THE SLUMP IN EUROPE AND JAPAN IT HAS BUDGETED A 10 INCREASE TO MORE THAN 800 MILLION IN EXPORTS OF WOOD PULP PAPER AND CONTAINER BOARD THIS YEAR IN LINE WITH THE GAINS OF THE PAST THREE YEARS SAYS CLINT M KENNEDY A GROUP VICE PRESIDENT THE COMPANY'S SALES TO JAPAN WHICH HAD BEEN GROWING MORE THAN 10 ANNUALLY WERE FLAT LAST YEAR AND SO WERE THOSE TO EUROPE BUT IT MADE UP THE SLACK WITH HIGHER SALES OF PULP TO OTHER FAR EASTERN COUNTRIES AND OF CONTAINER BOARD TO LATIN AMERICA AND ALTHOUGH CORPORATE GIANTS SUCH AS BOEING CO GENERAL ELECTRIC CO AND EASTMAN KODAK CO HAVE LONG DOMINATED US EXPORTS AND THE 50 LARGEST EXPORTERS STILL ACCOUNT FOR MORE THAN A THIRD OF THE DOLLAR TOTAL LEGIONS OF SMALL NEWCOMERS ARE GETTING INTO EXPORTING MULTIPLEX CO A BALDWIN MO MANUFACTURER OF BEVERAGE DISPENSERS FOR RESTAURANTS SAYS ITS EXPORTS HAVE DOUBLED IN THE PAST FIVE YEARS TO NEARLY 18 MILLION OF ITS 55 MILLION OF ANNUAL SALES MOST OF THOSE SALES ARE IN EUROPE BUT MULTIPLEX'S RECENT EXPERIENCE MIRRORS THE OVERALL EXPORT TRENDS ITS FASTEST GROWTH IS IN MEXICO AND THE FAR EAST CHAIRMAN JW KISLING SEES REASON FOR CONCERN ABOUT EUROPE BUT ADDS THAT THE PRODUCT HIS DISPENSERS DISPENSE SOFT DRINKS APPEARS TO BE RECESSIONPROOF EXPORTS MATTER MORE TO THE US THAN EVER BEFORE OVER THE PAST SIX YEARS MERCHANDISE EXPORTS HAVE DOUBLED TO NEARLY 450 BILLION LAST YEAR AND NOW REPRESENT SOME 20 OF US INDUSTRIAL OUTPUT THEY KEPT THE RECENT RECESSION FROM BECOMING WORSE THAN IT WAS RISING EXPORTS ADDED NEARLY 15 MILLION JOBS TO THE US ECONOMY FROM 1989 TO 1991 ESTIMATES ROSS C DEVOL OF WEFA GROUP A FORECASTING FIRM IN BALA CYNWYD PA AND EXPORTS CONTINUED STRONG LAST YEAR RISING MORE THAN 7 IN INFLATIONADJUSTED TERMS THROUGH NOVEMBER NEVERTHELESS MANY ECONOMISTS ARE WORRIED US EXPORTS WILL BE SMOTHERED BY OUR MAJOR TRADING PARTNERS' RECESSIONARY ECONOMIES STUART G HOFFMAN CHIEF ECONOMIST AT PNC FINANCIAL CORP SAYS IN A COMMENT TYPICAL OF THOSE WHO FEAR THAT A SLIDE IN EXPORTS WILL DAMP THE US RECOVERY THE NOVEMBER TRADE REPORT ISSUED FRIDAY REINFORCED THOSE FEARS EXPORTS DECLINED 28 THOUGH THEY TOPPED THE YEAREARLIER LEVEL A MORE DISTANT WORRY IS THAT A STRONG DOLLAR WHICH CLOBBERED US EXPORTS IN THE EARLY 1980S MAY DO SO AGAIN BUT WILLIAM CLINE OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK CONTENDS THAT GIVEN THE LAG IN THE IMPACT OF EVEN MAJOR CHANGES IN CURRENCY PRICES THE RECENT MINOR REBOUND IN THE DOLLAR WON'T AFFECT US TRADE THIS YEAR THE UPSHOT SOME ECONOMISTS ECHOING MANY EXPORTERS THEMSELVES BELIEVE THAT EXPORTS WILL CONTINUE TO BE THE STRONGEST SEGMENT OF THE ECONOMY ALTHOUGH THE SLUMPS IN GERMANY AND JAPAN WILL HURT THEY SAY THOSE MARKETS ARE LESS IMPORTANT TO THE US THAN THEY ONCE WERE GERMANY AND JAPAN COMBINED ACCOUNTED FOR ONLY 15 OF US MERCHANDISE EXPORTS LAST YEAR SAYS H ERICH HEINEMANN CHIEF ECONOMIST AT LADENBURG THALMANN & CO A NEW YORK SECURITIES FIRM MR HEINEMANN WHO IS MUCH MORE BULLISH ON EXPORTS AND THE ECONOMY THAN MOST ECONOMISTS EXPECTS SURGING DEMAND FOR US GOODS IN LATIN AMERICA AND THE PACIFIC RIM TO LIFT OVERALL EXPORTS 7 IN REAL TERMS THIS YEAR THAT ISN'T AS IMPLAUSIBLE AS IT MIGHT SEEM IN THE FIRST NINE MONTHS OF LAST YEAR US EXPORTS TO THE 12NATION EUROPEAN COMMUNITY AND TO JAPAN WERE ABOUT LEVEL WITH THE YEAREARLIER PERIOD BUT EXPORTS SURGED 22 IN LATIN AMERICA 67 IN EAST ASIA OUTSIDE JAPAN AND 79 IN CANADA IN DOLLARS US SALES TO LATIN AMERICA 56 BILLION TO EAST ASIA OUTSIDE JAPAN 64 BILLION AND TO CANADA 68 BILLION FAR EXCEEDED EXPORTS TO JAPAN 351 BILLION AND WERE CLOSING IN ON THE EC TOTAL 755 BILLION MOREOVER EXPORTS HAVE GROWN DESPITE SOME SELFINFLICTED WOUNDS THE US MAY BE LOSING 10 BILLION TO 30 BILLION IN ANNUAL EXPORTS BECAUSE OF ITS STRINGENT NATIONALSECURITY GUIDELINES AND INADEQUATE CREDIT GUARANTEES FROM THE EXPORTIMPORT BANK SAYS C FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS JUST ABOUT EVERYONE AGREES THAT THE TRADE DEFICIT WILL WIDEN THIS YEAR PERHAPS BY AS MUCH AS 20 BILLION THEY EXPECT THE US TO HAVE THE MOST ROBUST INDUSTRIAL ECONOMY AND SO ITS IMPORTS ALMOST CERTAINLY WILL RISE FASTER THAN ITS EXPORTS ESTIMATES OF THE 1992 TRADE DEFICIT RANGE FROM 80 BILLION TO 95 BILLION PREDICTIONS OF EXPORT PROBLEMS BEGAN CROPPING UP MORE THAN TWO YEARS AGO THE RATE OF INCREASE IN EXPORTS DID EASE BACK FROM THE BREAKNECK PACE OF THE LATE 1980S BUT NOT NEARLY AS MUCH AS MOST ECONOMISTS HAD FEARED THOSE WORRYING ABOUT US EXPORTS HAVE COME TO THE REALIZATION THAT THE US IS PART OF THE WORLD SAYS MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES BUT THEY THINK THAT THE WORLD CONSISTS OF JUST THREE COUNTRIES THE US GERMANY AND JAPAN THE FACT THAT EXPORTS HAVE CONTINUALLY OUTPACED EXPECTATIONS DEMONSTRATES WHAT A COMPETITIVE POWERHOUSE THE US HAS BECOME THE US SHARE OF EXPORTS BY ALL INDUSTRIAL COUNTRIES HAS RISEN TO MORE THAN 22 FROM 153 IN 1986 MOREOVER THE SOURCES OF EXPORT GROWTH THE TYPES OF GOODS SOLD ABROAD AS WELL AS WHERE THEY GO BOLSTER THE CASE FOR OPTIMISM THE SURGE IN MERCHANDISE EXPORTS OVER THE PAST SIX YEARS HAS COME ENTIRELY IN MANUFACTURED GOODS AGRICULTURAL EXPORTS WHICH LIKE OTHER PHYSICAL GOODS ARE INCLUDED IN MERCHANDISE EXPORTS ARE UP FROM THEIR 1986 LOW BUT AT ABOUT 40 BILLION A YEAR THEY STILL TRAIL THE 1980 LEVEL EVEN BEFORE ADJUSTING FOR INFLATION THE BIGGEST DOLLAR GROWTH IN EXPORTS HAS COME IN THE AREAS WHERE THE US HAS ALWAYS BEEN STRONGEST CAPITAL GOODS AND INDUSTRIAL SUPPLIES SUCH AS CHEMICALS PAPER AND PULP AND NONFERROUS METALS BUT THE US HAS ALSO MADE SURPRISING GAINS ESPECIALLY IN THE PAST TWO YEARS IN EXPORTS OF CONSUMER GOODS AND AUTOS TWO AREAS WHERE IT IS SUPPOSED TO BE A PUSHOVER INDEED EXPORTS OF CONSUMER GOODS NOW EXCEED AGRICULTURAL EXPORTS FOREIGN SALES OF CONSUMER PRODUCTS EXCLUDING FOOD AND AUTOS TRIPLED TO ABOUT 50 BILLION LAST YEAR FROM JUST 167 BILLION IN 1986 CANADA THE BIGGEST CUSTOMER FOR ALMOST EVERYTHING THE US SHIPS ABROAD BOUGHT 82 BILLION OF CONSUMER GOODS IN THE FIRST 10 MONTHS OF LAST YEAR UP FROM 72 BILLION IN THE YEAREARLIER PERIOD BUT THE BIGGEST GAINS IN CONSUMERGOODS SALES IN THE PAST TWO YEARS AS WITH ALL TYPES OF EXPORTS HAVE BEEN IN LATIN AMERICA THROUGH OCTOBER CONSUMERGOODS SALES TO ARGENTINA ROSE 68 FROM THE LIKE 1991 PERIOD TO AN ANNUAL RATE EXCEEDING 630 MILLION AND MEXICAN PURCHASES GREW 32 TO A 45 BILLION ANNUAL RATE WHICH CONSUMER GOODS ARE FOREIGNERS BUYING THE TWO BIGGEST CATEGORIES IN 1991 WERE PHARMACEUTICALS AT 54 BILLION AND TOBACCO PRODUCTS AT 46 BILLION CLOSE BEHIND ARE TOYS SHOOTING AND SPORTING GOODS 35 BILLION TEXTILE APPAREL AND FOOTWEAR 34 BILLION BOOKS AND MAGAZINES 32 BILLION AND HOUSEHOLD AND KITCHEN APPLIANCES 3 BILLION HARTLEY PEAVEY HAS THRIVED BY EXPORTING OF ALL THINGS CONSUMER ELECTRONICS PRODUCTS HIS PEAVEY ELECTRONICS CORP IN MERIDIAN MISS MAKES LOUDSPEAKERS MICROPHONES ELECTRIC GUITARS AMPLIFIERS AND JUST ABOUT ANYTHING ELSE NEEDED TO EQUIP A ROCK BAND MR PEAVEY WON'T DISCLOSE SALES OTHER THAN TO SAY THEY ARE INTO THE HUNDREDS OF MILLIONS OF DOLLARS A YEAR EXPORTS TO 103 COUNTRIES ACCOUNT FOR 30 OF HIS TOTAL REVENUE AND ARE GROWING MORE THAN 20 A YEAR EUROPE HAS BEEN OUR MOST IMPORTANT EXPORT MARKET MR PEAVEY SAYS BUT TOO MANY RULES ARE COMING OUT OF BRUSSELS AS EUROPE MOVES TO A UNIFIED MARKET AND MR PEAVEY IS LOOKING ELSEWHERE FOR GROWTH MEXICO OFFERS AN UNBELIEVABLE OPPORTUNITY FOR EXPORTERS AND SOUTH AMERICA IS OPENING LIKE A FLOWER HE SAYS I JUST GOT BACK FROM CHINA AND IT BLEW ME AWAY THE MARKET THERE WILL BE UNBELIEVABLE BUT THE SOUTH KOREAN GOVERNMENT RECENTLY DEMANDED THAT IMPORTERS DISCLOSE THE ORIGIN AND COST OF EVERY PART IN THEIR PRODUCTS AND THAT ALL WRITING ON CONSUMERELECTRONIC PRODUCTS BE IN KOREAN A REQUIREMENT NOT APPLIED TO DOMESTIC GOODS THE NEW TRADE BARRIERS DEVASTATED OUR KOREAN SALES MR PEAVEY SAYS US CIGARETTE COMPANIES ARE SEEING SOME TRADE BARRIERS FALL HOWEVER EXPORTS OF PHILIP MORRIS INTERNATIONAL INC JUMPED TO 107 BILLION CIGARETTES IN 1991 FROM 435 BILLION IN 1986 FIGURES FOR 1992 AREN'T AVAILABLE THE BIGGEST FACTOR IN THAT GROWTH WAS THE OPENING OF ASIAN MARKETS SAYS MATTHEW WINOKUR A PHILIP MORRIS SPOKESMAN BEFORE THE US PERSUADED JAPAN TO REMOVE IMPORT DUTIES FOREIGN CIGARETTE COMPANIES HAD LESS THAN 3 OF THE JAPANESE MARKET NOW THEY HAVE ABOUT 16 AND PHILIP MORRIS ALONE HAS 11 MR WINOKUR SAYS PHILIP MORRIS EXPECTS ITS FOREIGN SALES TO CONTINUE RISING EVEN IF WORLDWIDE CIGARETTE CONSUMPTION IS FLAT WE ARE VERY CONFIDENT THAT OUR MARKET SHARE IN ASIA AND EASTERN EUROPE WILL RISE TO THE LEVELS OF WESTERN EUROPE WHERE WE HAVE BEEN SELLING LONGER HE SAYS THE COMPANY'S MARKET SHARE IN WESTERN EUROPE RANGES FROM 25 IN FRANCE TO 34 IN GERMANY AND TO 40 IN ITALY AMERICAN CARS HAVEN'T ACHIEVED SUCH WORLDWIDE POPULARITY BUT THEY HAVE DONE MUCH BETTER THAN DETROIT'S PROTECTIONIST PLEAS SUGGEST AUTOMOTIVE EXPORTS TO COUNTRIES OTHER THAN CANADA WHERE MUCH OF THE AUTO TRADE IS THE MANUFACTURERS' INTRACOMPANY SHIPMENTS ACCELERATED TO MORE THAN 22 BILLION LAST YEAR FROM 57 BILLION IN 1986 AND DESPITE THE WEAK INDUSTRIAL ECONOMIES SALES TO MOST EUROPEAN COUNTRIES ROSE 16 OR MORE IN THE FIRST 10 MONTHS OF LAST YEAR AND THOSE TO JAPAN INCREASED 15 MEANWHILE AUTOMOTIVE SHIPMENTS TO BRAZIL SURGED 75 TO MEXICO 26 TO SAUDI ARABIA 36 AND TO TAIWAN 81 GM'S AUTO EXPORTS GENERAL MOTORS CORP IS THE LEADING US AUTO EXPORTER WITH FOREIGN SALES OF ABOUT 115000 USMADE CARS IN 1991 UP FROM 35000 IN 1986 ITS BEST MARKET FOR US PRODUCTS IS THE MIDEAST WHERE IT SOLD 53000 VEHICLES MOSTLY FULLSIZE MODELS IN 1991 BUT GM ALSO SOLD 22000 US CARS IN EUROPE LAST YEAR UP FROM 17000 IN 1991 AND EXPECTS A SIMILAR INCREASE THIS YEAR WE'RE SMARTER NOW A GM SPOKESWOMAN SAYS IN PREVIOUS YEARS WE WOULD MAKE ALL MODELS AVAILABLE EVERYWHERE NOW WE ARE TRYING TO LEARN MORE ABOUT CUSTOMERS IN DIFFERENT COUNTRIES AND THEIR TASTES AND NEEDS AND WE HAVE MADE A REAL COMMITMENT TO BOOST THE EXPORT MARKET SHE ADDS THAT GM'S IMPROVED QUALITY IS HELPING ITS SALES OVERSEAS HONDA MOTOR CO THE NO 2 EXPORTER OF CARS MADE IN NORTH AMERICA IS RAISING ITS US EXPORTS TOO LAST YEAR THE JAPANESE COMPANY EXPORTED FROM ITS TWO OHIO PLANTS MORE THAN 55000 ACCORDS AND CIVICS UP FROM 28205 CARS IN 1991 HONDA ALSO EXPORTS LAWN MOWERS AND MOTORCYCLES FROM ITS US PLANTS PLUS PARTS FOR CATALYTIC CONVERTERS AND AIR BAGS OTHER JAPANESE COMPANIES ALSO ARE EXPORTING AUTO PARTS FROM THE US THE BRIDGESTONE TIRES ON MAZDA MOTOR CORP'S MIATA SPORTS CAR FOR EXAMPLE CROSS THE PACIFIC TWICE BEFORE THE RUBBER MEETS THE ROAD BRIDGESTONE CORP MAKES THE TIRES IN LA VERGNE TENN AND SHIPS THEM HOME TO JAPAN WHERE MAZDA MOUNTS THEM ON THE CARS AND SHIPS THEM BACK TO THE US ANOTHER PLAYER IN THE AUTOMOTIVE EXPORT BOOM IS AUDIOVOX CORP OF HAUPPAUGE NY ITS FOREIGN SALES OF CAR SECURITY SYSTEMS STEREOS AND CELLULAR PHONES JUMPED TO 153 MILLION IN ITS NOV 30 FISCAL YEAR FROM 61 MILLION IN FISCAL 1990 ITS BIGGEST FOREIGN MARKETS ARE IN LATIN AMERICA WHERE ITS DISTRIBUTORS SELL TO AUTO DEALERS AND PARTS STORES AS WELL AS TO GM MAZDA AND TOYOTA MOTOR CORP THIS YEAR AUDIOVOX PLANS TO OPEN ITS OWN OFFICE IN BUENOS AIRES WE FEEL THE POTENTIAL IS SO STRONG THAT WE SHOULD HAVE OUR OWN PEOPLE THERE SAYS PATRICK E MOFFETT AN INTERNATIONAL MARKETING OFFICIAL THE BIGGEST UNKNOWNS IN THE TRADE PICTURE THIS YEAR ARE THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WITH CANADA AND MEXICO AND THE MUCHWIDER URUGUAY ROUND OF NEGOTIATIONS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE PACT WITH MEXICO FACES FIERCE OPPOSITION FROM LABOR UNIONS ENVIRONMENTALISTS AND OTHERS AND IT COULD BE DEFEATED IN CONGRESS AND THE GATT TALKS ARE STALEMATED BUT EXPORTS TO MEXICO WILL SURGE IF CONGRESS RATIFIES THE THREENATION PACT SAYS STEPHEN L COONEY JR A SENIOR POLICY DIRECTOR AT THE NATIONAL ASSOCIATION OF MANUFACTURERS HE NOTES THAT FOLLOWING THE FREETRADE AGREEMENT WITH CANADA THAT WENT INTO EFFECT IN 1988 US EXPORTS THERE CONTINUED TO RISE DESPITE A RECESSION AND MR BERGSTEN OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS CONSIDERS THE URUGUAY ROUND OF GATT EVEN MORE IMPORTANT TO THE FUTURE GROWTH OF US TRADE 9301180007 930118 WESTINGHOUSE GE END TALKS ON CREDIT UNIT HOPES THAT WESTINGHOUSE COULD SHED SUBSIDIARY IN BULK SALE ARE DASHED BY STUART MIEHER AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP AND GENERAL ELECTRIC CO SAID THEY ENDED NEGOTIATIONS AIMED AT THE SALE OF MOST OF WESTINGHOUSE'S CREDIT UNIT TO GE'S GENERAL ELECTRIC CAPITAL UNIT THE ANNOUNCEMENT DASHED HOPES FOR A BULK SALE THAT WOULD QUICKLY END WESTINGHOUSE'S ILLSTARRED INVOLVEMENT WITH REAL ESTATE AND CORPORATE LENDING WHICH PRECIPITATED MORE THAN 5 BILLION IN WRITEDOWNS OVER THE PAST TWO YEARS THE COMPANY'S STOCK FELL BY AS MUCH AS 175 FRIDAY BEFORE CLOSING AT 1375 DOWN 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WESTINGHOUSE SAID ITS INVESTMENT BANKER MORGAN STANLEY & CO CONTENDS THAT THE SALE OF THE CREDIT UNIT'S LOAN PORTFOLIO IN PIECES SHOULD BRING SUBSTANTIALLY MORE VALUE THAN A BULK SALE INDEED WESTINGHOUSE SAID SUCH PIECEMEAL SALES HAD BROUGHT IN MORE THAN 600 MILLION DURING LAST YEAR'S FOURTH QUARTER IN AN INTERVIEW ROBERT WATSON CHIEF EXECUTIVE OFFICER OF THE CREDIT UNIT WESTINGHOUSE FINANCIAL SERVICES INC SAID THAT AMOUNT EXCEEDED THE BOOK VALUE OF THE PROPERTIES INVOLVED WESTINGHOUSE SAID GE DIDN'T DISPUTE THAT THE LOAN PORTFOLIO WAS WORTH ITS BOOK VALUE AFTER RESERVES OR 41 BILLION AS OF SEPT 30 BUT PEOPLE CLOSE TO WESTINGHOUSE SAID GE WANTED DEALS WITH OTHER BUYERS TO BE PUT ON HOLD TO ALLOW IT TIME FOR MORE THOROUGH DUEDILIGENCE STUDY AS WELL AS SOME WILLINGNESS BY WESTINGHOUSE TO ASSUME RESPONSIBILITY FOR LOSSES ON THE PORTFOLIO AFTER THE SALE WESTINGHOUSE HOWEVER HELD THAT WHEN WE SELL THESE ASSETS THEY HAVE TO BE GONE SAID A SOURCE CLOSE TO THE COMPANY NOR WOULD WESTINGHOUSE DELAY OTHER SALES WESTINGHOUSE DIDN'T WANT TO JUST DANCE WITH GE FOREVER SAID ANOTHER PERSON CLOSE TO WESTINGHOUSE WHO ADDED THAT GE CAPITAL HAS A REPUTATION FOR DRIVING HARD BARGAINS AND THAT WESTINGHOUSE WAS NOT DESPERATE TO DO A DEAL MR WATSON DECLINED TO COMMENT ON THE SPECIFICS OF THE TALKS BUT SAID OUR POSITION WITH A BUYER IS YOU VERIFY THE CONDITION OF THE ASSETS AND DON'T LOOK TO ME TO INDEMNIFY YOU LATER SINCE ANNOUNCING PLANS TO LEAVE THE FINANCIAL SERVICES BUSINESS IN NOVEMBER WESTINGHOUSE HAS SAID IT WOULD SELL THE CREDIT UNIT OVER TWO TO THREE YEARS BUT SINCE EARLY DECEMBER ITS TOP MANAGERS HAVE FOCUSED ON A QUICK BULK SALE TO GE WITH MR WATSON AND WESTINGHOUSE CEO PAUL LEGO MEETING WITH TOP GE EXECUTIVES INCLUDING ITS CEO JOHN F WELCH DEWITT BOWMAN CHIEF INVESTMENT OFFICER OF CALPERS THE CALIFORNIA STATE PENSION FUND THAT HOLDS 06 OF WESTINGHOUSE'S STOCK SAID THE TERMINATION OF THE TALKS WAS A DISAPPOINTMENT FOR CALPERS AND AN EMBARRASSMENT FOR WESTINGHOUSE ALTHOUGH HE SAID PIECEMEAL SALES OF THE ASSETS MIGHT PRODUCE MORE VALUE IN THE LONG RUN MAUREEN LENTZ AN ANALYST AT ROULSTON & CO SAID THAT HAD THE DEAL GONE THROUGH THE ALBATROSS WOULD FINALLY HAVE BEEN OFF THEIR BACKS AND THEY COULD FOCUS ON THEIR CONTINUING BUSINESSES NOW SHE SAID IT JUST KEEPS DRAGGING ON MOREOVER SOME ANALYSTS SAID GE'S FAILURE TO COME TO TERMS REFLECTED POORLY ON THE VALUE OF THE PORTFOLIO NOTING THAT THIS MARKS THE SECOND TIME GE HAS LOOKED AT THE ENTIRE LOAN PORTFOLIO WITHOUT COMPLETING A SALE THE FIRST WAS IN LATE 1991 RUSSELL LEAVITT AN ANALYST AT SALOMON BROTHERS SAID IT RAISES THE QUESTION HAS WESTINGHOUSE RESERVED ENOUGH WESTINGHOUSE EXECUTIVES WORKED HARD TO ALLAY SUCH CONCERNS SAYING GE DIDN'T DISPUTE THE BASIC VALUE OF THE PORTFOLIO AND THAT THE SALES DURING THE FOURTH QUARTER INDICATED BUYER INTEREST WAS HIGH 9301180006 930118 FORMER ASBESTOS MAKERS 2 LAW FIRMS MAP 1 BILLION PACT TO CURB LITIGATION BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL A GROUP OF 20 FORMER ASBESTOS MANUFACTURERS HAS REACHED A 1 BILLION SETTLEMENT WITH TWO LEADING PLAINTIFF FIRMS IN AN UNUSUAL EFFORT TO SHARPLY SLASH PERSONALINJURY LITIGATION THAT HAS CLOGGED THE COURTS AND CAST A SHADOW ON THE COMPANIES' FINANCIAL FUTURE THE PROPOSED SETTLEMENT WHICH COVERS ONLY FUTURE CLAIMS AND NOT THE MORE THAN 100000 SUITS PENDING AROUND THE COUNTRY MARKS THE FIRST TIME OUTSIDE OF BANKRUPTCY COURT THAT ASBESTOS DEFENDANTS AND PLAINTIFFS' LAWYERS HAVE AGREED ON A WAY TO RESOLVE ASBESTOS LITIGATION NATIONALLY IF APPROVED BY THE COURTS THE SETTLEMENT MAY ALSO OFFER A MODEL FOR MANUFACTURERS TO LIMIT LIABILITY IN OTHER CASES INVOLVING TOXIC PRODUCTS BUT THE BOLD PROPOSAL FACES NUMEROUS OBSTACLES IT ALREADY IS COMING UNDER FIRE FROM OTHER PLAINTIFF LAWYERS WHO REPRESENT THOUSANDS OF ASBESTOS VICTIMS AND THE LARGEST FORMER ASBESTOS MAKERS AREN'T PARTY TO THE AGREEMENT IT'S GOING TO BE VERY HOTLY CONTESTED SAID FRED BARON A PLAINTIFF LAWYER WITH THE DALLAS LAW FIRM BARON & BUDD WHO REPRESENTS MANY ASBESTOS VICTIMS AND PLANS TO CHALLENGE THE PROPOSED SETTLEMENT UNDER THE PROPOSAL THE 20 MEMBERS OF THE PRINCETON NJ CENTER FOR CLAIMS RESOLUTION AND THEIR INSURERS WILL RESOLVE OUTSIDE OF THE COURTS AT LEAST 100000 NEW ASBESTOSINJURY CLAIMS FOR 1 BILLION DURING THE NEXT DECADE THE CENTER WHOSE MEMBERS HAVE BEEN FOUND BY JURIES TO ACCOUNT FOR AS MUCH AS 25 OF LIABILITY IN ASBESTOS PERSONALINJURY CASES ALSO HAS OFFERED TO SETTLE UNDER THE SAME TERMS ALL 76000 OF THE PENDING LAWSUITS AGAINST ITS MEMBERS AT AN ESTIMATED COST OF ANOTHER 1 BILLION LAWYERS INVOLVED HAILED THE SETTLEMENT AS A HISTORIC OPPORTUNITY TO END THE ASBESTOS LITIGATION CRISIS WHICH HAS SPAWNED MORE THAN 200000 LAWSUITS HAS PUSHED 16 COMPANIES INTO BANKRUPTCY PROCEEDINGS AND CONTINUES TO GROW AT AN ESTIMATED RATE OF AT LEAST 50 LAWSUITS A DAY FOR THE FIRST TIME IT GIVES OUR MEMBER COMPANIES CERTAINTY ABOUT THEIR ASBESTOS LIABILITY SAID LAWRENCE FITZPATRICK PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CENTER ALREADY SOME OF THE COMPANIES ARE SAYING THE SETTLEMENT WILL ALLOW THEM FOR THE FIRST TIME TO CALCULATE THEIR TOTAL ASBESTOS LIABILITY FOR EXAMPLE GAF INC ONE OF THE CENTER'S MEMBERS FACING THE LARGEST ASBESTOS LIABILITY SAID THAT IF THE SETTLEMENT IS APPROVED AND IF PENDING SUITS ARE SETTLED ON THE SAME TERMS ITS ASBESTOS LIABILITY DURING THE NEXT 10 YEARS WILL BE NO MORE THAN 200 MILLION AFTER TAXES AND INSURANCE PAYMENTS FOR PEOPLE INJURED BY ASBESTOS ONCE WIDELY USED IN FIREPROOFING AND INSULATION BUT WHICH HAS BEEN SHOWN TO CAUSE CANCER AND RESPIRATORY AILMENTS THE SETTLEMENT IS BEING PROMOTED AS A WAY TO GET MONEY TO THEM MORE QUICKLY IT'S AN IDEA WHOSE TIME HAS COME SAID GENE LOCKS OF THE PHILADELPHIA LAW FIRM GREITZER & LOCKS ONE OF THE TWO PLAINTIFF FIRMS PUSHING FOR APPROVAL OF THE SETTLEMENT IT PROVIDES MORE MONEY TO VICTIMS FASTER MAXIMIZES THE ASSETS OF THE COMPANIES AND THEIR INSURERS AND TAKES UP LESS LEGAL FEES AND OTHER TRANSACTION FEES TO BIND FUTURE ASBESTOS CLAIMANTS TO THE TERMS OF THE SETTLEMENT MR LOCKS'S LAW FIRM AND THE OTHER FIRM REPRESENTING PLAINTIFFS IN THE PROPOSAL NESS MOTLEY LOADHOLT RICHARDSON & POOLE OF CHARLESTON SC FILED IN FEDERAL COURT FRIDAY A LAWSUIT SEEKING CLASSACTION STATUS FOR ALL WORKERS OR THEIR FAMILY MEMBERS INJURED BY ASBESTOS WHO HAVEN'T YET INITIATED PERSONALINJURY LITIGATION THE CLASSACTION PROPOSAL WILL GO BEFORE US DISTRICT JUDGE CHARLES WEINER WHO HAS BEEN ASSIGNED JURISDICTION OVER ALL ASBESTOS PERSONALINJURY CASES IN FEDERAL COURT MR LOCKS'S AND MR MOTLEY'S LAW FIRMS ALSO ARE COLEAD COUNSEL FOR PLAINTIFFS IN THAT CONSOLIDATED LITIGATION JUDGE WEINER IN PHILADELPHIA IS EXPECTED TO HOLD HEARINGS DURING WHICH TIME POTENTIAL ASBESTOS CLAIMANTS AND PLAINTIFFS LAWYERS ON THEIR BEHALF CAN ASK NOT TO BE INCLUDED IN THE SETTLEMENT IF TOO MANY PEOPLE CHOOSE NOT TO JOIN THE SETTLEMENT THE CENTER CAN BACK OUT OF THE DEAL ESSENTIALLY THE PROPOSED SETTLEMENT WOULD ESTABLISH A PRIVATE ADMINISTRATION TO HANDLE ASBESTOS CLAIMS OUTSIDE THE COURTS PANELS WOULD ASSESS EACH PERSON'S INJURY CLAIMS PAYMENT RATES RANGING FROM 2500 TO 300000 HAVE BEEN SET BASED ON THE AVERAGES OF PAST AWARDS TO ASBESTOS VICTIMS LAWYERS WHO HAVE STUDIED THE DEAL POINT TO SOME POTENTIAL PITFALLS THOUGH FOR EXAMPLE IF ONE OF THE COMPANIES DEFAULTS FELLOW MEMBERS OF THE GROUP AREN'T RESPONSIBLE FOR PICKING UP ITS SHARE OF THE PAYMENTS WHICH COULD LEAVE VICTIMS WITH LESS MONEY IN ADDITION BY SENDING OUT BROAD NOTICE OF THE SETTLEMENT TO PEOPLE WHO MAY HAVE COME INTO CONTACT WITH ASBESTOS THE PROPOSAL MAY ENCOURAGE MORE ASBESTOS CLAIMS ASIDE FROM GAF OF WAYNE NJ THE CENTER'S MEMBERS BELIEVED TO BE FACING THE LARGEST ASBESTOS LIABILITY ARE ARMSTRONG WORLD INDUSTRIES INC LANCASTER PA NATIONAL GYPSUM CO DALLAS T&N PLC A BRITISH COMPANY AND US GYPSUM CO A UNIT OF USG CORP CHICAGO OTHER MEMBER COMPANIES FACING LESS LIABILITY ARE AMCHEM PRODUCTS INC AP GREEN INDUSTRIES INC CERTAINTEED CORP CE THURSTON & SONS INC DANA CORP FLEXITALLIC INC IU NORTH AMERICA INC MAREMONT CORP NATIONAL SERVICES INDUSTRIES INC NOSROC CORP FERODO AMERICA INC PFIZER INC QUIGLEY CO SHOOK & FLETCHER INSULATION CO AND UNION CARBIDE CHEMICALS & PLASTICS CO 9301180005 930118 HIGH COURT TO HEAR SUIT BY THREE STATES OVER SEABROOK TAXES WASHINGTON A FEDERAL OFFICIAL APPOINTED BY THE SUPREME COURT RECOMMENDED THAT THE JUSTICES SIDE WITH THREE OTHER NEW ENGLAND STATES IN THEIR BATTLE WITH NEW HAMPSHIRE OVER TAXATION OF THE SEABROOK NH NUCLEAR POWER PLANT THE HIGH COURT SAID FRIDAY THAT IT WOULD HEAR ARGUMENTS FROM BOTH SIDES IN THE DISPUTE THIS SPRING WITH A DECISION EXPECTED BY EARLY SUMMER CONNECTICUT MASSACHUSETTS AND RHODE ISLAND HAVE ACCUSED NEW HAMPSHIRE OF IMPOSING A PROPERTY TAX ON SEABROOK'S OWNERS THAT EFFECTIVELY WOULD ADD MILLIONS OF DOLLARS TO THE ELECTRIC BILLS OF CONSUMERS IN THE THREE CHALLENGING STATES THE THREE STATES SAY NEW HAMPSHIRE HAS DESIGNED ITS TAX SYSTEM SO THAT UTILITIES OPERATING WITHIN NEW HAMPSHIRE ARE SHELTERED FROM THE SOCALLED SEABROOK TAX SEABROOK TAX PAYMENTS TO NEW HAMPSHIRE FOR 1991 AND 1992 ARE EXPECTED TO TOTAL ABOUT 35 MILLION THE THREE STATES FILED A LAWSUIT AGAINST NEW HAMPSHIRE BEFORE THE SUPREME COURT WHICH MAY HEAR SUCH DISPUTES AMONG STATES WITHOUT LOWERCOURT PROCEEDINGS THE JUSTICES APPOINTED AN OFFICIAL KNOWN AS A SPECIAL MASTER TO MAKE RECOMMENDATIONS IN THE CASE THE SPECIAL MASTER IN A REPORT SUBMITTED LATE LAST MONTH URGED THE HIGH COURT TO STRIKE DOWN THE TAX AFTER CONCLUDING THAT IT UNCONSTITUTIONALLY INTERFERES WITH INTERSTATE COMMERCE THE PROPERTY TAX AT ISSUE WAS ENACTED IN 1991 IT APPLIES ONLY TO THE NEW ENGLAND UTILITIES THAT OWN SEABROOK BUT NEW HAMPSHIRE INCLUDED A PROVISION THAT GIVES UTILITIES THAT OPERATE WITHIN THE STATE A DOLLARFORDOLLAR CREDIT TO COVER THE PROPERTYTAX LIABILITY 9301180004 930118 ARNOTTS LTD ADVISES SHAREHOLDERS TO REJECT CAMPBELL'S LATEST BID SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA THE INDEPENDENT DIRECTORS OF ARNOTTS LTD FRIDAY ADVISED SHAREHOLDERS TO REJECT A TAKEOVER OFFER FROM CAMPBELL SOUP CO EVEN THOUGH THE BID WAS RAISED THURSDAY TO 950 AUSTRALIAN DOLLARS US637 A SHARE FROM A880 BILL PURDY CHAIRMAN OF ARNOTTS A COOKIE AND CRACKER MAKER SAID IN A STATEMENT THAT THE INDEPENDENT DIRECTORS MET FRIDAY AND DECIDED TO REJECT THE NEW OFFER FROM CAMPBELL SOUP A FOOD PRODUCTS CONCERN IN CAMDEN NJ ARNOTTS SHARES CLOSED AT A951 ON THE AUSTRALIAN STOCK EXCHANGE FRIDAY UP ONE CENT FROM THURSDAY AND ONE CENT OVER CAMPBELL SOUP'S RAISED OFFER MR PURDY MAINTAINED THAT AUSTRALIAN LAW ALLOWS CAMPBELL SOUP TO AGAIN RAISE OR EXTEND ITS OFFER EVEN THOUGH THE US COMPANY SAID THURSDAY ITS A950 BID IS FINAL BUT A COURT DECISION ALSO ANNOUNCED THURSDAY CONFIRMED CAMPBELL SOUP'S CONTROL OF ARNOTTS IS LIMITED UNLESS IT ACQUIRES 85 OF THE AUSTRALIAN COMPANY OR SUCCEEDS IN OVERTURNING A 1985 AGREEMENT THE NEW SOUTH WALES STATE COURT OF APPEAL UPHELD AN AGREEMENT BETWEEN THE TWO COMPANIES THAT CAMPBELL SOUP WOULDN'T VOTE MORE THAN 149 OF ARNOTTS' SHARES TO APPOINT DIRECTORS TO THE ARNOTTS BOARD MR PURDY SAID FRIDAY THE EFFECT OF THE COURT DECISION IS THAT THE VOTING AGREEMENT BETWEEN THE TWO COMPANIES IS BINDING KEVIN LOWERY A SPOKESMAN FOR CAMPBELL SOUP SAID THE COMPANY REMAINED CONFIDENT THAT IT WOULD ACQUIRE ARNOTTS EVEN THOUGH IT DOESN'T PLAN TO RAISE ITS BID THAT'S BECAUSE THERE ARE PEOPLE TENDERING THEIR SHARES TO CAMPBELL AT THE LATEST BID PRICE HE SAID 9301180003 930118 HEARD ON THE STREET HEAVY VOLUME AND LAGGING BLUE CHIPS MAY POINT TO COMING DECLINE IN STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE WARNING FLAGS ARE FLYING THE HEAVY TRADING VOLUME ON BOTH THE NEW YORK STOCK EXCHANGE AND THE NASDAQ OVERTHECOUNTER MARKET IN RECENT WEEKS SIGNALS THAT CHANCES ARE GROWING FOR A SHARP DROP IN STOCK PRICES SAY SOME ANALYSTS ALL THE VOLUME RIGHT NOW IS AN AMBER WARNING LIGHT FOR A FEW MONTHS DOWN THE ROAD SAYS JACK SOLOMON A TECHNICAL ANALYST AT BEAR STEARNS SO FAR THIS YEAR TRADING ON THE BIG BOARD HAS AVERAGED A SIZZLING 258 MILLION SHARES A DAY FAR ABOVE THE DAILY AVERAGE VOLUME OF 202 MILLION SHARES IN 1992 ON THE NASDAQ AVERAGE DAILY VOLUME THIS YEAR IS RUNNING AT 247 MILLION SHARES UP FROM LAST YEAR'S 190 MILLION SHARES LARGE TRADING VOLUME BY ITSELF ISN'T ALWAYS A WARNING OF DANGER AHEAD FOR STOCKS VOLUME BEGAN SURGING ON BOTH THE BIG BOARD AND THE NASDAQ IN THE LAST QUARTER OF 1992 AND IN DECEMBER THE INCREASING VOLUME ON THE NEW YORK STOCK EXCHANGE WAS ACCOMPANIED BY A RISE IN THE DOW JONES INDUSTRIAL AVERAGE A COMBINATION THAT MANY ANALYSTS VIEWED AS A SIGN OF STOCKMARKET STRENGTH THE PATTERN WAS EXPECTED TO CONTINUE AS 1993 OPENED TRADING VOLUME USUALLY SURGES AT THE START OF THE YEAR AS INVESTORS RETURN TO THE MARKET AFTER THE HOLIDAYS BUT EVEN THOUGH BIG BOARD TRADING VOLUME HAS CONTINUED STRONG PRICES HAVEN'T IN THE FIRST WEEK OF THE NEW YEAR THE DOW INDUSTRIALS SLUMPED 15 THEY WERE LITTLE CHANGED LAST WEEK THAT MEANS HEAVY TRADING VOLUME WHICH REACHED 306 MILLION SHARES FRIDAY ISN'T MOVING STOCK PRICES HIGHER TO AC MOORE A PORTFOLIO MANAGER AND STOCKMARKET STRATEGIST IN SANTA BARBARA CALIF THAT'S AN OMINOUS CONDITION IT INDICATES TO ME THAT THE MARKET IS AT A POINT OF INEFFICIENCY WHERE THERE'S MORE SUPPLY OF STOCK THAN DEMAND HE SAYS IT ISN'T A TIME TO BE BUYING AND YOU MIGHT THINK ABOUT LIGHTENING UP IN YOUR PORTFOLIO OTHER ANALYSTS SAY THAT DANGER ALSO LURKS IN THE FEVERISH TRADING IN SMALL STOCKS ON THE OVERTHECOUNTER MARKET OVERTHECOUNTER TRADING VOLUME HAS EXCEEDED BIG BOARD VOLUME IN EIGHT OF THE PAST 12 WEEKS AND NOW IRONICALLY IT'S RISING SMALLSTOCK PRICES ALONG WITH THAT HEAVY VOLUME THAT IS THE THREATENING COMBINATION IT SUGGESTS THAT SPECULATORS ARE ACCOUNTING FOR A LARGE PORTION OF THE TRADING WHEN NASDAQ VOLUME EXCEEDS NYSE VOLUME IT SIGNALS EXCESSIVE SPECULATION IN THE MARKETPLACE WHICH USUALLY OCCURS AT MARKET HIGHS SAYS BERNADETTE MURPHY DIRECTOR OF TECHNICAL ANALYSIS AT MONEYMANAGEMENT FIRM M KIMELMAN & CO OF COURSE INVESTORS WHO ARE RIDING THE POWERFUL SMALLSTOCK RALLY AREN'T COMPLAINING NOR ARE THE BROKERAGE FIRMS THAT ARE SELLING STOCKS TO THOSE INVESTORS THE SURGE IN TRADING VOLUME TRANSLATES INTO HIGHER COMMISSION PROFITS FOR BROKERAGE FIRMS AS WELL AS UNDERWRITING FEES FROM THE MYRIAD SMALL COMPANIES RUSHING NEW STOCK OFFERINGS TO MARKET JUST HOW SOON ANY CORRECTION MIGHT RESULT IS A MATTER OF SPECULATION MR MOORE SUGGESTS THAT INVESTORS CONTINUE TO KEEP A CLOSE WATCH ON VOLUME TRENDS IF VOLUME STARTS TO DRY UP AT THIS POINT IT COULD BE A PROBLEM HE SAYS ANY TIME PRICES ARE AT A RELATIVELY HIGH LEVEL AND VOLUME BEGINS TO RECEDE IT WOULD INDICATE A REAL COOLINGOFF PERIOD BUT BEAR STEARNS'S MR SOLOMON SAYS ANY CORRECTION PROBABLY IS STILL SEVERAL WEEKS AWAY IN THE INTERIM HE EXPECTS STOCK PRICES TO MOVE HIGHER YOU DON'T TOP OUT ON HIGH VOLUME IT USUALLY HAPPENS TWO TO THREE MONTHS DOWN THE ROAD HE SAYS VOLUME IS STILL STRONG ENOUGH TO MUSCLE PRICES HIGHER HE PREDICTS THE DOW INDUSTRIALS WILL CLIMB AS HIGH AS 3350 IN THE FIRST QUARTER AFTER THAT I'D BE WORRIED HE SAYS THE MARKET COULD BACK OFF AND IT COULD BE A SERIOUS DECLINE LOWER THAN THE LOW OF 3100 WE'VE SEEN RECENTLY MS MURPHY OF KIMELMAN SUGGESTS THAT WHEN THE DOWNTURN COMES IT MAY MARK THE END OF THE TWOYEAROLD BULL MARKET SHE POINTS TO THE HIGH OVERTHECOUNTER TRADING VOLUME AS A KEY INDICATOR IF THE DOW INDUSTRIALS DON'T PUSH TO NEW HIGHS SHE SAYS THE MARKET'S OUTLOOK IS GRIM AND SHE PUTS THE CHANCES OF THE DOW INDUSTRIALS HITTING A NEW RECORD AT ONLY ABOUT 25 WITHOUT AN IMPROVEMENT IN PRICES I WOULD BE CONCERNED THAT THE DOW INDUSTRIALS ARE REACHING A PEAK MS MURPHY SAYS IF IT DOESN'T COME THIS QUARTER THEN IT WILL COME EARLY NEXT QUARTER AND THEN THE DOW WILL GO INTO A CORRECTION OF AS MUCH AS 15 THE BULL MARKET THAT BEGAN IN THE FALL OF 1990 MAY BE DRAWING TO A CLOSE 9301180002 930118 INTERNATIONAL RED CAPITALIST' SAYS HE'LL RETIRE FROM CHINESE FIRM BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG RONG YIREN ONCE KNOWN AS CHINA'S RED CAPITALIST WILL RETIRE THIS YEAR AS CHAIRMAN OF CHINA INTERNATIONAL TRUST & INVESTMENT CORP HIS SON SAID A FRIEND OF CHINESE LEADER DENG XIAOPING MR RONG USED HIS CONNECTIONS AND BUSINESS SKILLS TO BUILD THE INVESTMENT CONCERN INTO AN INTERNATIONALLY RECOGNIZED CONGLOMERATE WITH OPERATIONS AND INVESTMENTS THROUGHOUT CHINA AND IN SEVERAL OTHER COUNTRIES HIS SON LARRY YUNG AN EXECUTIVE DIRECTOR OF THE STATE INVESTMENT CORPORATION AND HEAD OF ITS HONG KONG OPERATIONS SAID HIS FATHER WHO IS 76 WILL BECOME CHINA INTERNATIONAL TRUST'S HONORARY CHAIRMAN THIS YEAR MR RONG WILL BE SUCCEEDED BY WEI MINGYI CHINA INTERNATIONAL TRUST'S PRESIDENT WHO IN TURN WILL BE SUCCEEDED AS PRESIDENT BY WANG JUN 51 SENIOR FIRST VICE PRESIDENT AND CHAIRMAN OF CITIC HONG KONG HOLDINGS LTD MR YUNG SAID MR YUNG SAID HIS OWN POSITION WON'T BE AFFECTED BY HIS FATHER'S RETIREMENT I AM NOT SUPPORTED BY MY FATHER HE SAID I AM SUPPORTED BY THE BOARD OF DIRECTORS JOHN MULCAHY DIRECTOR OF RESEARCH AT PEREGRINE SECURITES IN HONG KONG SAID ANALYSTS WILL BE WATCHING ANY CHANGES IN BEIJING FOR SIGNS OF THEIR CONSEQUENCES FOR CITIC PACIFIC LTD A PUBLIC COMPANY CHINA INTERNATIONAL TRUST IS PERSONALITYBASED HE SAID YOU BUY CHINA INTERNATIONAL TRUST BECAUSE YOU LIKE THE STYLE OF RONG YIREN OR LARRY YUNG CHINA INTERNATIONAL TRUST WAS THE FIRST INTERNATIONALLY ORIENTED COMMERCIAL ENTERPRISE TO EMERGE IN COMMUNIST CHINA MR DENG APPOINTED MR RONG TO START THE COMPANY IN 1978 WITH SEED CAPITAL OF ABOUT 5 MILLION THE COMPANY GREW INTO A DIVERSIFIED GROUP WITH ASSETS OF MORE THAN 7 BILLION AND INDIRECT STAKES IN SUCH COMPANIES AS CATHAY PACIFIC AND DRAGONAIR AIRLINES AS WELL AS THE TELECOMMUNICATIONS COMPANIES IN HONG KONG AND MACAO THE COMPANY ALSO IS CHINA'S BIGGEST PLAYER ON THE INTERNATIONAL CAPITAL MARKETS ALTHOUGH MR RONG WILL GIVE UP SOME OF HIS CORPORATE RESPONSIBILITIES HE WILL RETAIN HIS POSITION AS A VICE CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS STANDING COMMITTEE MR YUNG SAID 9301180001 930118 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANPONCE CORP A SHELF OFFERING OF 400 MILLION OF DEBT SECURITIES AND PREFERRED STOCK CONE MILLS CORP A SECONDARY OFFERING OF FIVE MILLION COMMON SHARES BY A GROUP OF NINE BANK AFFILIATES AND A CHARITABLE TRUST VIA PRUDENTIAL SECURITIES INC AND JP MORGAN SECURITIES INC CORESTATES CAPITAL CORP A UNIT OF CORESTATES FINANCIAL CORP A SHELF OFFERING OF 1 BILLION OF DEBT SECURITIES WARRANTS TO PURCHASE DEBT SECURITIES AND PREFERRED STOCK VIA MERRILL LYNCH & CO GOLDMAN SACHS & CO LEHMAN BROTHERS INC JP MORGAN AND CORESTATES CAPITAL MARKETS MERRY LAND & INVESTMENT CO AN OFFERING OF 45 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC KIDDER PEABODY & CO AND INTERSTATE/JOHNSON LANE CORP PROPERTY TRUST OF AMERICA AN OFFERING OF 55 MILLION SHARES OF BENEFICIAL INTEREST VIA GOLDMAN SACHS AG EDWARDS & SONS INC KIDDER PEABODY AND MERRILL LYNCH PSI ENERGY INC A SHELF OFFERING OF 6680000 SHARES OF CUMULATIVE PREFERRED STOCK ROTECH MEDICAL CORP AN OFFERING OF 15 MILLION COMMON SHARES VIA UNDERWRITERS LED BY WHEAT FIRST SECURITIES INC BUTCHER & SINGER INC CAPITAL MARKETS AND NEEDHAM & CO SUMMIT HEALTH LTD AN OFFERING OF UP TO 50 MILLION OF EXCHANGEABLE SUBORDINATED NOTES VIA SMITH BARNEY HARRIS UPHAM & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP TANOX BIOSYSTEMS INC AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA MERRILL LYNCH AND DILLON READ & CO TIDE WEST OIL CO AN OFFERING OF 3150000 OF COMMON SHARES 9301150196 930115 WHO'S NEWS HYDE GETS TRIMEDYNE POSTS IRVINE CALIF TRIMEDYNE INC SAID PETER T HYDE 47 YEARS OLD WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR THE MAKER OF SURGICAL LASER SYSTEMS SAID MR HYDE WAS RECRUITED FIVE MONTHS AGO AS A CONSULTANT WITH THE UNDERSTANDING THAT HE WOULD EVENTUALLY BECOME PRESIDENT HE SUCCEEDS MARVIN P LOEB WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING POST HAD BEEN VACANT MR HYDE WILL BE RESPONSIBLE FOR DAYTODAY OPERATIONS WHILE MR LOEB WILL FOCUS ON FINANCING AND INTERACTION WITH WALL STREET 9301150195 930115 LETTERS TO THE EDITOR SLEIGHT OF HAND' LOOK CLOSER I WAS FLATTERED TO FIND MY VIEWS ABOUT TORT LIABILITY CATAPULTED TO THE FRONT PAGE OF YOUR OCT 16 NEWSPAPER I WOULD HAVE BEEN EVEN MORE FLATTERED IF THEY HAD SURVIVED THE LAUNCH INTACT YOUR STORY FOCUSED ON A SINGLE PARAGRAPH FROM MY 1988 BOOK LIABILITY YOU DISMISSED MY 80 BILLION ESTIMATE OF THE DIRECT COSTS OF LIABILITY INSURANCE AS CONJECTURE THEN YOU WROTE MR HUBER DIDN'T STOP AT THE 80 BILLION HE MULTIPLIED IT BY 35 TO CREATE AN ESTIMATE FOR THE INDIRECT COSTS OF LITIGATION SOME 300 BILLION MR HUBER DISCLOSED THE SOURCE OF THE MULTIPLIER BUT USED IT TO CALCULATE SOMETHING FAR BROADER WHAT ALL OF SOCIETY MIGHT BE PAYING INDIRECTLY TO AVOID ALL SUITS THERE FOLLOWED A QUOTE ACCUSING ME OF SLICK SLEIGHT OF HAND HERE IN ITS ENTIRETY IS WHAT I ACTUALLY WROTE ON THIS POINT IN LIABILITY IN 1988 THE TORT LIABILITY TAX DIRECTLY COSTS AMERICAN INDIVIDUALS BUSINESSES MUNICIPALITIES AND OTHER GOVERNMENT BODIES AT LEAST 80 BILLION A YEAR A FIGURE THAT EQUALS THE TOTAL PROFITS OF THE COUNTRY'S TOP 200 CORPORATIONS BUT MANY OF THE TAX'S COSTS ARE INDIRECT AND UNMEASURABLE REFLECTED ONLY IN THE TREMENDOUS EFFORT INCONVENIENCE AND SACRIFICE AMERICANS NOW GO THROUGH TO AVOID ITS COLLECTION THE EXTENT OF THESE INDIRECT COSTS CAN ONLY BE GUESSED AT ONE STUDY CONCLUDED THAT DOCTORS SPEND 350 IN EFFORTS TO AVOID ADDITIONAL CHARGES FOR EACH 1 OF DIRECT TAX THEY PAY IF SIMILAR MULTIPLIERS OPERATE IN OTHER AREAS THE TAX'S HIDDEN IMPACT ON THE WAY WE LIVE AND DO BUSINESS MAY AMOUNT TO A 300 BILLION ANNUAL LEVY ON THE AMERICAN ECONOMY YOU THEN SUGGESTED THAT ONLY THE ESTIMATES OF AN INSURANCE INDUSTRY AND BUSINESS CONSULTING FIRM SUPPORT MY BASELINE 80 BILLION FIGURE YOU ADDED A LOWER ESTIMATE OF THE DIRECT COSTS OF TORT SUITS 29 BILLION TO 36 BILLION HAS BEEN OFFERED BY THE RAND INSTITUTE FOR CIVIL JUSTICE A NONPARTISAN RESEARCH GROUP HERE IS WHAT RAND SAID IN 1992 A 300 BILLION DRAIN ON OUR ECONOMY FROM THE LIABILITY SYSTEM IS THE NUMBER MOST OFTEN CITED IN THE PRESS WHERE DOES IT COME FROM A 1985 ICJ STUDY ESTIMATED THE DIRECT COSTS OF SETTLING LIABILITY SUITS TO BE BETWEEN 29 AND 35 BILLION WHICH IS CERTAINLY TOO LOW FOR TODAY THIS FIGURE INCLUDES SUCH DIRECT COSTS AS SETTLEMENTS AWARDS LAWYERS' FEES AND CLAIMS PROCESSING COSTS BUT NOT INSURANCE PREMIUM PAYMENTS A MORE RECENT REVIEW OF VARIOUS COST STUDIES BY THE AMERICAN LAW INSTITUTE ROUGHLY ESTIMATED THE DIRECT COSTS OF THE LIABILITY SYSTEM AT 100 BILLION THIS FIGURE INCLUDES INSURANCE COSTS SELFINSURANCE AND RETAINED LIABILITY AND MISCELLANEOUS COSTS ROUGHLY HALF OF THIS IS SPENT FOR AUTO LIABILITY HOW DID 100 BILLION BECOME 300 BILLION MOST LIKELY FROM A FORBES ARTICLE REPORTING ON CALCULATIONS OF TOTAL DIRECT AND INDIRECT LIABILITY COSTS BY PETER HUBER HIS NUMBERS ARE BASED IN PART ON AN AMERICAN MEDICAL ASSOCIATION ESTIMATE THAT FOR EVERY DOLLAR SPENT ON MEDICAL CARE ANOTHER 350 IS SPENT ON DEFENSIVE MEDICINE PROCEDURES USED TO PROTECT HEALTH CARE PROVIDERS FROM MALPRACTICE SUITS HUBER MULTIPLIED A DIRECT COST OF 80 BILLION BY THE AMA'S 350 AND CAME UP WITH 280 BILLION THIS FIGURE RAISES SOME QUESTIONS FIRST ARE ESTIMATES FOR MEDICAL MALPRACTICE APPLICABLE TO OTHER TYPES OF LIABILITY SECOND HOW GOOD AN ESTIMATE ARE THE FIGURES FOR DEFENSIVE MEDICINE AND FINALLY IS 80 TO 100 BILLION AN ACCURATE ESTIMATE FOR DIRECT COSTS RIGHT NOW THE ANSWER TO THESE QUESTIONS MUST BE THAT WE DON'T REALLY KNOW A RECENT ICJ STUDY ON EMPLOYMENT LIABILITY SUGGESTS HOWEVER THAT THE INDIRECT COST OF LIABILITY MAY BE MUCH LARGER THAN THE DIRECT COSTS NUMBERS TEND TO TAKE ON A LIFE OF THEIR OWN ESPECIALLY WITH NATIONAL MEDIA ATTENTION TOO MUCH EMPHASIS HAS PROBABLY BEEN PLACED ON THE NUMBERS INSTEAD OF ON THE UNDERLYING ISSUES READERS MAY JUDGE FOR THEMSELVES WHETHER YOU SUPPLIED THEM WITH A FAIR PARAPHRASE AND CRITIQUE OF WHAT I SAID IN MY BOOK 9301150194 930115 WHO'S NEWS READER'S DIGEST ASSOCIATION INC READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY LYNNE V CHENEY 51 YEARS OLD WAS NAMED A DIRECTOR AT THIS PUBLISHER AND DIRECTMAIL MARKETER MS CHENEY IS THE DEPARTING CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES SHE SUCCEEDS LAURANCE S ROCKEFELLER 82 WHO RETIRED LAST FRIDAY 9301150193 930115 WHO'S NEWS YORK INTERNATIONAL CORP YORK INTERNATIONAL CORP YORK PA ROBERT N POKELWALDT 56 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN AT THIS AIRCONDITIONING HEATING AND VENTILATION EQUIPMENT CONCERN MR POKELWALDT WHO CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDS JAMES T DRESHER 73 WHO IS RETIRING MR DRESHER RELINQUISHED HIS POSITION AS CHIEF EXECUTIVE IN JUNE 1991 9301150192 930115 WHO'S NEWS GENERAL AMERICAN INVESTORS CO GENERAL AMERICAN INVESTORS CO NEW YORK BILL GREEN 63 YEARS OLD WAS NAMED A DIRECTOR AT THIS CLOSEDEND INVESTMENT COMPANY INCREASING THE BOARD TO 16 MEMBERS MR GREEN IS A FORMER REPUBLICAN CONGRESSMAN FROM NEW YORK 9301150191 930115 CHITTENDEN SAYS PROFIT FOR 4TH PERIOD SOARED TO CLOSE TO 2 MILLION BURLINGTON VT CHITTENDEN CORP SAID IT WILL POST FOURTHQUARTER NET INCOME OF 18 MILLION TO 2 MILLION OR 39 TO 43 CENTS A SHARE COMPARED WITH 12 MILLION OR 25 CENTS A SHARE IN THE YEAREARLIER QUARTER CHITTENDEN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER PAUL PERRAULT SAID IN AN INTERVIEW WE HAVE CONTINUED A PATTERN OF PROGRESS AND EVERYTHING CONVINCES US THIS UPWARD CURVE IN EARNINGS WILL CONTINUE THE COMPANY WILL REPORT FOURTHQUARTER AND YEAREND FIGURES ON WEDNESDAY MR PERRAULT SAID NONPERFORMING ASSETS AT VERMONT'S SECOND LARGEST BANK HOLDING COMPANY WHICH HAS 11 BILLION IN ASSETS AND 40 BRANCH OFFICES WILL BE ABOUT 22 MILLION FOR THE QUARTER OR 2 OF TOTAL ASSETS DOWN FROM 266 MILLION IN THE THIRD QUARTER IN MID1990 WHEN MR PERRAULT TOOK OVER AS CHIEF EXECUTIVE NONPERFORMERS TOTALED ABOUT 35 MILLION WE'VE MADE REAL HEADWAY WITH NONACCRUAL LOANS BY KNOWING WHICH LOANS SHOULD BE CLOSED OUT VS THOSE WHERE THE FUNDAMENTALS ARE GOOD AND THE CUSTOMER CAN BE WORKED WITH MR PERRAULT SAID HE SAID 60 OF NONACCRUAL LOANS ARE BEING PAID ON SCHEDULE FOR ALL OF 1992 CHITTENDEN EXPECTS TO REPORT NET OF 69 MILLION TO 71 MILLION OR 152 TO 156 A SHARE THOUGH LOAN GROWTH IN NEW ENGLAND IS STILL SLUGGISH CHITTENDEN'S TOTAL LOANS FOR THE FOURTH QUARTER ARE EXPECTED TO REACH 826 MILLION UP 2 FROM 810 MILLION IN THE THIRD QUARTER AND UP 59 FROM 777 MILLION IN THE YEAREARLIER PERIOD MR PERRAULT SAYS LENDING FOR NEW HOME PURCHASES WAS UP SLIGHTLY IN THE FOURTH QUARTER AND SHOULD CONTINUE TO RISE IN 1993 THOUGH CHITTENDEN'S MOST PROFITABLE AREA IN 1992 WAS REFINANCINGS THE COMPANY A MORTGAGE ORIGINATOR HAD PRETAX EARNINGS OF ABOUT 35 MILLION FROM SALES OF MORTGAGES IN 1992 AND ALL OF THOSE WERE ORIGINATED BY THE BANK MR PERRAULT SAID 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 9301150190 930115 EXECUTIVEPAY DISCLOSURE RULES PAY OFF FOR ADVISERS BY JOANN S LUBLIN AND JULIE AMPARANO LOPEZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW EXECUTIVEPAY DISCLOSURE RULES ARE FORCING COMPANIES TO TELL INVESTORS A LOT MORE ABOUT HOW AND HOW MUCH THEY REWARD TOP EXECUTIVES SO SHAREHOLDERS WILL BE THE BIG WINNERS RIGHT GUESS AGAIN THE BIGGEST WINNERS MAY BE THE BEVY OF ADVISERS CASHING IN ON CORPORATE ANXIETY OVER THE REQUIREMENTS ADOPTED BY THE SECURITIES AND EXCHANGE COMMISSION LAST OCTOBER MAJOR LAW FIRMS COMPENSATION CONSULTANTS PUBLICRELATIONS FIRMS ACCOUNTANTS INVESTMENT BANKS COMPUTERSOFTWARE MAKERS AND PUBLISHERS OF ELECTRONIC DATA ARE AMONG THOSE JUMPING ON THE ADVICE BANDWAGON SHAREHOLDER PROXY STATEMENTS PREPARED UNDER THE NEW RULES STARTED TO APPEAR LAST WEEK AND THE 1993 PROXY SEASON WILL SOON BE IN FULL SWING THERE ARE INCREDIBLE BUSINESS OPPORTUNITIES FOR HELPING PEOPLE TO COMPLY WITH THESE NEW RULES SAYS GARY LYONS RESEARCHANDDEVELOPMENT DIRECTOR OF INSTITUTIONAL SHAREHOLDER SERVICES INC SINCE MIDOCTOBER THE WASHINGTON DC PROXYADVISORY COMPANY HAS BEEN FIELDING AN UNPRECEDENTED NUMBER OF CALLS FROM CORPORATIONS PUZZLED OVER HOW TO VALUE THEIR SENIOR OFFICERS' COMPENSATION PACKAGES MR LYONS ADDS THE SEC IS CREATING A NEW INDUSTRY THE PAY REGULATIONS REQUIRE THAT PROXY STATEMENTS INCLUDE FOUR NEW CHARTS SPELLING OUT COMPENSATION FOR A COMPANY'S FIVE HIGHESTPAID EXECUTIVES THE CHARTS REPLACE CONSIDERABLE FINANCIAL AND LEGAL JARGON AND BOARDS' COMPENSATION COMMITTEES NOW MUST GIVE A DETAILED SIGNED EXPLANATION OF WHY THEY PAID THOSE TOP EXECUTIVES AS THEY DID AS A RESULT A BIG PR FIRM BURSONMARSTELLER SET UP A SEPARATE CORPORATEGOVERNANCE PRACTICE LAST FALL TO COUNSEL BUSINESSES ON HOW TO DRAFT THEIR PROXY STATEMENTS BUSINESS IS BRISK AT THE NEW PRACTICE ONE BURSONMARSTELLER CONSULTANT SAYS MARY MCCUE A VICE PRESIDENT OF THE PRACTICE SAYS SHE IS ADVISING COMPANIES TO DRESS UP THEIR USUALLY DULL PROXY STATEMENTS BY INCLUDING FANCY GRAPHICS AND PHOTOGRAPHS EVEN FINANCIAL PRINTERS WANT TO GRAB A PIECE OF THE ACTION BY OFFERING COSTLY SEMINARS ROGER A BREED A VICE PRESIDENT OF CONTINENTAL MEDICAL SYSTEMS INC A BIG MECHANICSBURG PA BUILDER AND MANAGER OF REHABILITATION HOSPITALS SAYS HE JUST THREW OUT ONE BROCHURE FOR SUCH A SEMINAR PEOPLE ARE TRYING TO PROFIT FROM SOME COMPANIES' LACK OF KNOWLEDGE ROBERT TODD LANG A SENIOR PARTNER AT WEIL GOTSHAL & MANGES A BIG LAW FIRM IN NEW YORK AGREES THERE IS AN ENORMOUS AMOUNT OF ACTIVITY BY CORPORATE ADVISERS BECAUSE EVERY PUBLIC COMPANY SMALL MEDIUM AND LARGE HAS TO REVIEW THEIR DECISIONMAKING STRUCTURE ON EXECUTIVE COMPENSATION HE SAYS MUCH OF THIS IS UNCHARTED TERRITORY MR LANG REPORTS THAT HIS LAW FIRM HAS RECENTLY GAINED A NUMBER OF NEW CORPORATE CLIENTS WHO REQUESTED ITS HELP IN PREPARING THEIR 1993 PROXY STATEMENTS AGGRESSIVE MARKETING MAY HELP LAST MONTH WEIL GOTSHAL HELD A FREE NEW YORK SEMINAR ABOUT THE NEW EXECUTIVEPAY RULES FOR ABOUT 140 CLIENTS AND POTENTIAL CLIENTS AMONG THOSE INVITED SOME COMPANY OFFICIALS WHO HAD FILED COMMENTS ABOUT THE SEC'S RULE CHANGES THE COMMISSION RECEIVED NEARLY 1200 COMMENTS ON ITS OVERHAUL WHICH ALSO EASED COMMUNICATIONS AMONG SHAREHOLDERS ONE INVITEE WAS THOMAS ASHFORD AN AMERICAN ELECTRIC POWER SERVICE CORP EXECUTIVE WHO SAYS HE HAD NEVER HEARD OF WEIL GOTSHAL BEFORE RECEIVING ITS PERSONALIZED INVITATION MR ASHFORD ASSISTANT GENERAL COUNSEL FOR THE COLUMBUS OHIO UTILITY ADDS I HAVE A WHOLE FILE FOLDER OF BUSINESS SOLICITATIONS ARISING FROM THE CONCERN'S COMMENT LETTER TO THE SEC THE AMERICAN ELECTRIC OFFICIAL SAYS HE SKIPPED THE WEIL GOTSHAL SEMINAR BECAUSE IT OCCURRED OUT OF TOWN AND INSTEAD ATTENDED A LOCAL SEMINAR RUN BY WILLIAM M MERCER INC HIS COMPANY'S COMPENSATION CONSULTANT MERCER STAGED AN UNPRECEDENTED 30CITY ROADSHOW TO EDUCATE MORE THAN 1000 CURRENT AND POTENTIAL CUSTOMERS ABOUT THE NEW PAY RULES SAYS YALE TAUBER A MANAGING DIRECTOR OF THE CONSULTING COMPANY WE CERTAINLY HAVE PICKED UP NEW BUSINESS FROM THE FREE SEMINARS MR TAUBER CONTINUES YOU DON'T CHARGE FOR ADVICE WHERE YOU ARE TRYING TO SELL SERVICES IN THE NEW YORK AREA ALONE HE ESTIMATES MERCER SHOULD SEE CLOSE TO A 10 INCREASE IN COMPENSATIONADVISORY WORK AS A CONSEQUENCE OF THE NEW SEC REQUIREMENTS SOME MERCER COMPETITORS SUCH AS WYATT CO REPORT SIMILAR ACTUAL OR PROJECTED GAINS A POSSIBLE REASON OVERKILL SEVERAL BIG FOOD AND BEVERAGE CORPORATIONS WORRIED ABOUT GETTING THEIR PROXY STATEMENTS RIGHT HAVE EACH HIRED FOUR SEPARATE COMPENSATION CONSULTANTS RATHER THAN THE USUAL ONE REPORTS MR LYONS OF INSTITUTIONAL SHAREHOLDER SERVICES COMPUTERSOFTWARE MAKERS AND ELECTRONICDATA PUBLISHERS ALSO ARE REAPING BENEFITS FROM THE EXECUTIVEPAY DISCLOSURE RULES ONE NEW CHART MUST DISCLOSE THE VALUE OF STOCK OPTIONS GRANTED TO THE TOP FIVE EXECUTIVES COMPANIES CAN SHOW WHAT THE OPTIONS WOULD BE WORTH AT 5 AND 10 GROWTH COMPOUNDED OVER THE LIFE OF AN OPTION OR CONCERNS CAN DECLARE THE VALUE OF THE OPTIONS WHEN THEY ARE GRANTED BY USING A COMMONLY RECOGNIZED FORMULA FOR VALUING STOCK OPTIONS MANY SOFTWARE MAKERS HAVE LONG SOLD PRODUCTS THAT HELP TO VALUE OPTIONS TRADED ON STOCK EXCHANGES NOW CORPORATIONS ARE SNAPPING UP THAT SOFTWARE TO EVALUATE THE OPTIONS IN THEIR SENIOR EXECUTIVES' PAY PACKAGES AT TECH HACKERS INC A NEW YORK SOFTWARE CONCERN MONTHLY SALES OF THE COMPANY'S OPTIONS @NALYST' PRODUCT HAVE JUST GONE OUT OF THE ROOF TRIPLING SINCE LAST FALL SAYS JACQUELINE MEZIANI MARKETING DIRECTOR SHE ATTRIBUTES THE GROWTH TO THE SEC RULES INTERNATIONAL BUSINESS MACHINES CORP IS USING SOFTWARE MADE BY MONTGOMERY INVESTMENT GROUP WAYNE PA TO PREPARE ITS PROXY STATEMENT SAYS PHILIP KOUSHANPOUR AN ANALYST IN IBM'S TREASURY DEPARTMENT THE COMPUTER GIANT HAD INITIALLY PURCHASED THE SOFTWARE TO CHECK QUOTED PRICES FOR VARIOUS TRADED STOCK OPTIONS THE OPTIONS SOFTWARE COSTS BETWEEN 395 AND 1995 MONTGOMERY OFFICIALS SAY BESIDES THE NEW CHARTS THIS YEAR'S PROXY STATEMENTS MUST INCLUDE A PERFORMANCE GRAPH COMPARING A COMPANY'S FIVEYEAR TOTAL RETURN STOCK CHANGE PLUS DIVIDENDS WITH A BROAD MARKET INDEX SUCH AS STANDARD & POOR'S 500STOCK INDEX BUSINESSES ALSO MUST COMPARE THEMSELVES WITH A GROUP OF PEERS THEY CAN USE A WELLKNOWN PEER GROUP OR ASSEMBLE THEIR OWN IT IS IMPORTANT TO PICK THE RIGHT PEER GROUP BECAUSE THE COMPARISON MAY INFLUENCE HOW WALL STREET VIEWS A COMPANY'S PERFORMANCE INVESTMENT BANKERS SAY THAT'S WHERE ELECTRONICDATA PUBLISHERS FIT IN COMPUSTAT SERVICES INC HAS BEEN FRANTICALLY WORKING TO COMPILE PERFORMANCEGRAPH PACKAGES WHICH HAVE BEEN ORDERED BY SEVERAL HUNDRED CORPORATIONS REPORTS LINDA PENFOLD DIRECTOR OF DATABASE AND CUSTOM BUSINESSES FOR THE UNIT OF STANDARD & POOR'S CORP HALLIBURTON CO IS AMONG THOSE CUSTOMERS ACCORDING TO A SECOND COMPUSTAT OFFICIAL THE COMPUSTAT PACKAGES RUN BETWEEN 200 AND 2000 THE COSTLIER VERSION FEATURES A CUSTOMMADE PEER GROUP RATHER THAN SIMPLY AN S&P INDUSTRY GROUPING SUCH AS AIRLINES DOW JONES & CO WHICH PUBLISHES THIS NEWSPAPER REPORTS THAT ITS BUSINESS INFORMATION SERVICES GROUP HAS BOOKED ALMOST 200 ORDERS FOR A SIMILAR PACKAGE OF PERFORMANCECHART DATA THE PACKAGE DRAWN FROM THE DOW JONES EQUITY MARKET INDEX COSTS ABOUT 350 WILL THIS FLURRY OF REQUIREMENTS AND COSTLY ADVICE ENABLE THE INVESTING PUBLIC TO LEARN ENOUGH ABOUT EXECUTIVE PAY TO CURB EXCESSES AS SEC CHAIRMAN RICHARD BREEDEN ENVISIONED SOME ARE UNSURE INSTITUTIONAL SHAREHOLDER SERVICES' MR LYONS HAS REVIEWED THE 1993 PROXY STATEMENTS RELEASED SO FAR IN MANY CASES HE CONCLUDES IT'S BUSINESS AS USUAL 9301150189 930115 MARKETING BY JEFFREY A TRACHTENBERG FUR MERCHANTS ONCE LIKELY CANDIDATES FOR THE ENDANGEREDSPECIES LIST HAD THEIR FIRST HOLIDAY CHEER IN FIVE YEARS OUR RETAILERS REPORTED CHRISTMAS SALES INCREASES OF 10 TO 30 SAYS CAROL WYNNE EXECUTIVE DIRECTOR OF THE FUR INFORMATION COUNCIL OF AMERICA A TRADE GROUP EVANS INC THE NATION'S LARGEST FUR RETAILER SAYS ITS CHRISTMAS FUR REVENUE AT STORES OPEN AT LEAST A YEAR ROSE 26 FROM 1991 THAT GAIN FOLLOWED THE CHICAGOBASED COMPANY'S FIRST PROFITABLE FISCAL THIRD QUARTER ITS CRUCIAL FALL SELLING PERIOD IN SIX YEARS IN THE QUARTER WHICH ENDED NOV 28 EVANS EARNED 780000 AFTER A YEAREARLIER LOSS OF 661000 FLEMINGTON FUR FLEMINGTON NJ SAYS ITS CHRISTMAS REVENUE ROSE MORE THAN 10 A STRONG CONTRAST TO DISAPPOINTING SALES EARLIER IN THE YEAR BARGAIN PRICES REFLECTING OVEREXPANSION IN THE MID'80S BY FUR RANCHERS AND RETAILERS HELPED DRAW BUYERS THE AVERAGE PRICE OF A NEW MINK COAT HAS FALLEN 50 IN THE PAST FIVE YEARS TO 1500 SALES WERE HELPED BY AN EARLY COLD SNAP IN THE EAST AND MIDWEST AT EVANS SHREWD MARKETING HELPED NEWSPAPER ADS PROMISED CUSTOMERS PEACE OF MIND ABOUT WORKMANSHIP BY OFFERING A TWOYEAR GUARANTEE ON ALL OF THE COMPANY'S FURS BUT THE KEY WAS THE IMPROVING ECONOMIC OUTLOOK SAYS SAMUEL GARBER AN EVANS VICE PRESIDENT FUR RETAILERS HAVE HAD LITTLE GOOD NEWS SINCE SALES PEAKED AT 18 BILLION IN 1987 THE STOCK MARKET CRASH SIGNALED A CHANGE IN FORTUNES SALES PLUMMETED TO 1 BILLION IN 1991 SHIFTING CULTURAL ATTITUDES HURT TOO MORE PEOPLE CAME TO SEE FURS AS TOTEMS OF GREED AND CRUELTY RATHER THAN DESIRABLE LUXURY PRODUCTS WITH SALES FALLING SOME DEPARTMENT STORES INCLUDING NORDSTROM AND LORD & TAYLOR DROPPED FURS BUT THE INDUSTRY SAYS IT IS ON THE MEND AND PLAYS DOWN ANY LONGTERM CULTURAL CHANGE ANTIFUR PROTESTERS DIDN'T HAVE NEARLY AS STRONG AN IMPACT ON BUSINESS AS THE RECESSION SAYS MS WYNNE OF THE FUR COUNCIL A RETURN TO THE DAYS OF THE 1980S HOWEVER IS UNLIKELY THE PROTESTERS HAVE GIVEN FURS A STIGMA THEY MAY NEVER LOSE AND LOWER PRICES ARE CUTTING INTO RETAILERS' PROFITS WE'VE GOT TO SELL TWICE AS MANY FURS AS IN 1987 TO GENERATE THE SAME DOLLAR VOLUME SAYS ERNEST MARX PRESIDENT OF SAKS INC CHEVY CHASE MD WHICH OWNS THE SAKS JANDEL RETAIL CHAIN IT ISN'T EASY THERE'S NOTHING LIKE A HALFNAKED CELEBRITY TO SELL SKIVVIES MARKY MARK THE RAP SINGER WITH A PENCHANT FOR DROPPING HIS PANTS WHILE PERFORMING HAS APPEARED SINCE OCTOBER IN ADS FOR A NEW LINE OF CALVIN KLEIN UNDERWEAR INCLUDING 16 BUTTONFLY SHORTS AND 21 CYCLING SHORTS THE ADS SEEM TO HAVE HIT THEIR MARK CALVIN KLEIN INC SAYS ITS FOURTHQUARTER MEN'S UNDERWEAR SALES ROSE 34 FROM A YEAR EARLIER KAL RUTTENSTEIN SENIOR VICE PRESIDENT AT BLOOMINGDALE'S A UNIT OF FEDERATED DEPARTMENT STORES SAYS THE NEW LINE'S SALES HAVE BEEN EXPLOSIVE AT THE CHAIN'S LEXINGTON AVENUE FLAGSHIP STORE IN NEW YORK MARKY MARK IS THE MALE EQUIVALENT OF BROOKE SHIELDS AS FAR AS HIS IMPACT ON YOUNG PEOPLE HE SAYS WHILE IN FLORIDA RECENTLY MR RUTTENSTEIN SAYS HE SAW YOUNG MEN AND WOMEN WEARING THE UNDERWEAR IN THE MARKY MARK FASHION THE CALVIN KLEIN NAME ON THE WAISTBAND VISIBLE BENEATH PARTLY UNBUTTONED JEANS SLUNG LOW ON THE HIPS OTHER RETAILERS SAY THEIR CALVIN KLEIN UNDERWEAR SALES HAVE ALSO INCREASED SINCE MR KLEIN ALLIED HIMSELF WITH THE RAPPER RH MACY & CO SAYS THE UNDERWEAR LINE HAS BEEN VERY SUCCESSFUL A DAYTON HUDSON SPOKESWOMAN ADDS LOGO WAISTBAND UNDERWEAR IS REALLY HOT SO FAR RIVALS SEEM DISINCLINED TO MIMIC THE RACY CALVIN KLEIN ADS MARKY MARK WILL BE HERE ONE DAY AND GONE THE NEXT SAYS MARK STEINKRAUSS VICE PRESIDENT OF INVESTOR RELATIONS AT FRUIT OF THE LOOM CHICAGO WHICH HAS 40 OF THE 11 BILLION MEN'S AND BOY'S UNDERWEAR MARKET FRUIT OF THE LOOM TAKES A FAMILYORIENTED TACK IN ITS CURRENT TV ADS WHICH FEATURE A GRAHAM NASH RERECORDING OF HIS FOLKROCK HIT TEACH YOUR CHILDREN A SPOKESWOMAN FOR SARA LEE CORP'S HANES UNIT SAYS THAT WITH BASKETBALL STAR MICHAEL JORDAN AS ITS ENDORSER HAVING HIM APPEAR IN HIS UNDERWEAR ISN'T NECESSARY THERE'S STILL VIGOR IN THE BRANDED SNEAKER BUSINESS GROWTH OF ATHLETICFOOTWEAR SALES HAS SLOWED SUBSTANTIALLY IN THE US SINCE THE MID'80S A DEVELOPMENT THAT LAST YEAR PROMPTED THE COUNTRY'S BIGGEST SNEAKER RETAILER WOOLWORTH'S FOOT LOCKER UNIT TO LOOK MORE TO EUROPE PLANNING A TENFOLD EXPANSION THERE TO 1000 STORES BUT BRANDED SNEAKER SALES ROSE 45 IN THE US LAST YEAR TO A RECORD OF MORE THAN 6 BILLION SAYS JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE A NEWSLETTER IN GLEN MILLS PA HOT ITEMS INCLUDED BASKETBALL HIKING AND WALKING SHOES NO IT'S NOT THE DOUBLEDIGIT GROWTH OF THE 1980S MR HORAN SAYS BUT THIS IS STILL A VERY HEALTHY MARKET AND MOST OF THE MANUFACTURERS IN IT ARE PROFITABLE NIKE BASED IN BEAVERTON ORE AND REEBOK INTERNATIONAL IN STOUGHTON MASS SPRINTED FARTHER AHEAD OF OTHER SNEAKER MAKERS LAST YEAR CAPTURING OVER HALF OF THE BRANDED SNEAKER MARKET BETWEEN THEM MR HORAN SAYS 182 BILLION OR 30 OF THE MARKET FOR NIKE 148 BILLION OR 24 FOR REEBOK'S US DIVISION THE BIGGEST WEAKNESS WAS IN THE MARKET FOR SNEAKERS PRICED ABOVE 90 AS SNEAKER BUYERS LIKE MOST OTHER CONSUMERS LAST YEAR OPTED FOR LOWERPRICED ITEMS THE TARGET STORES UNIT OF DAYTON HUDSON IS JOINING WITH PARENTS MAGAZINE TO PRODUCE MAGAZINES WITH HOME AND FAMILY FEATURES FOR FREE INSTORE DISTRIBUTION AFTER MORE THAN A YEAR'S ABSENCE SAKS FIFTH AVENUE IS RETURNING TO NATIONAL MAGAZINES IN ISSUES HITTING NEWSSTANDS THIS MONTH ITS BLACKANDWHITE AD CAMPAIGN FEATURES SUCH DESIGNERS AS DONNA KARAN AND GORDON HENDERSON 9301150188 930115 WHO'S NEWS EDITEK INC EDITEK INC BURLINGTON NC MARK D DIBNER WAS NAMED TO THE BOARD OF THIS BIODIAGNOSTIC COMPANY FILLING A VACANCY DR DIBNER WHO HAS A DOCTORATE IN NEUROBIOLOGY IS A VICE PRESIDENT AND DIRECTOR OF THE NORTH CAROLINA BIOTECHNOLOGY CENTER AND AN ADJUNCT ASSOCIATE PROFESSOR AT DUKE UNIVERSITY 9301150187 930115 WHO'S NEWS BROWN GROUP INC BROWN GROUP INC ST LOUIS JOHN D MACOMBER WAS NAMED A DIRECTOR OF THIS SHOE AND SPECIALTY RETAILING CONCERN MR MACOMBER 65 YEARS OLD IS THE IMMEDIATE PAST CHAIRMAN OF THE EXPORTIMPORT BANK OF THE US AND A FORMER CHAIRMAN OF CELANESE CORP 9301150186 930115 LETTERS TO THE EDITOR THE VAST POWER OF SIMPLE KINDNESS TO EACH HIS OWN AS THE SAYING GOES BUT THESE TWO WRITINGS EMOTIONALLY WERE IN STARK CONTRAST I WAS COMFORTED BY THE THOUGHT THAT WHATEVER THE LETTER WRITER'S SENTIMENTS REGARDING THE LOVE OF FAMILY I'M SURE SHE STILL ENJOYS THE PLEASURES OF KINDNESS EXTENDED TO OTHER PEOPLE WE ALL APPRECIATE THE STRANGER WHO TOOK THE TIME TO TIE A LITTLE HAT AND MASK AROUND A SMALL TOY DOG JUST SO A CHILD COULD WAKE UP AND SMILE THIS IS A WORTHY NEW YEAR'S RESOLUTION FOR ALL OF US KINDNESS TO ALL PEOPLE AND THE OUTCOME OF SUCH KINDNESS IS AS STATED SO WELL BY MR DE VINCK VAST AND POWERFUL THANKS TO MR DE VINCK FOR SHARING HIS THOUGHTS AND THANKS TO THE STRANGER WHOEVER YOU ARE MEDICINE A PROFESSION IN TRANSITION AND TARGETED FOR REFORM IS NOT OFTEN THE RECIPIENT OF KUDOS TODAY THUS WHILE AMERICAN HEALTH CARE IS FREQUENTLY CRITICIZED INDIVIDUAL ACTS OF KINDNESS PROFESSIONAL MEASURES OF GRACE THAT I WOULD LIKE TO BELIEVE ARE A DAILY OCCURRENCE IN MEDICINE ARE LOST IN THE ZEAL FOR MEDICAL REFORM MR DE VINCK'S TOUCHING ARTICLE UNDERSCORES THE EMOTIONAL PAIN TENDERNESS AND GRIEF MOST OF US SHARE WITH OUR PATIENTS IT ALSO SERVES TO REMIND US THAT SUCH SMALL GESTURES OF CONCERN MAY BE OUR ONLY THERAPY WHEN MEDICAL SCIENCE HAS TOUCHED ITS BOUNDARIES OF LIMITATIONS MR DE VINCK'S LOVING DESCRIPTION OF HIS EXPERIENCES AS A FATHER OF A SICK CHILD WAS ELOQUENT HIS TRIBUTE TO NURSES AND TO WHAT WE BELIEVE IS THE CORE CONCEPT OF NURSING MEANT SO MUCH TO ME PEDIATRIC NURSES CREATE MOMENTS OF MAGIC FOR CHILDREN AND FAMILIES UNDER STRESS EACH DAY THE POWER OF CARING IS OFTEN OVERLOOKED IN OUR SOCIETY CONGRATULATIONS FOR BRINGING AN ACCURATE AND MEANINGFUL IMAGE OF NURSING TO YOUR READERS 9301150184 930115 KOHLBERG BUYS MORTGAGE FIRM NEW YORK KOHLBERG & CO AN INVESTMENT BANKING FIRM ACQUIRED CROSSLAND MORTGAGE CORP FROM THE FEDERAL DEPOSIT INSURANCE CORP TERMS WEREN'T DISCLOSED CROSSLAND MORTGAGE FORMERLY A UNIT OF NEW YORKBASED CROSSLAND FEDERAL SAVINGS WHICH THE FDIC IS OPERATING SERVICES ABOUT 60000 RESIDENTIAL MORTGAGE LOANS TOTALING MORE THAN 6 BILLION 9301150183 930115 LETTERS TO THE EDITOR A DUTY TO FREEDOM NOT TO THE STATE IN HIS DEC 24 LETTER TO THE EDITOR DEFENDING THE NOTIONS OF DUTIES TO THE STATE AND NATIONAL SERVICE CAPT JOHN J AMSLER PICKS A REMARKABLY INAPPROPRIATE EXAMPLE HE WRITES OF THE COURAGEOUS MEN AT VALLEY FORGE FIGHTING IN THE AMERICAN REVOLUTION IF THOSE MEN HAD FELT THEY HAD DUTIES TO THE STATE WHICH WAS ENGLAND THEY WOULD NOT HAVE BEEN FIGHTING A REVOLUTION AGAINST THE STATE THE PEOPLE WHO FOUGHT IN THE AMERICAN REVOLUTION WERE NOT CONSCRIPTS IN A NATIONAL SERVICE THEY CHOSE TO FIGHT FOR THEIR FREEDOM DOUG BANDOW OF THE CATO INSTITUTE WAS CORRECT IN HIS QUOTE IN THE ARTICLE ON WHICH CAPT AMSLER COMMENTS DUTIES TO THE STATE AND COMPULSORY NATIONAL SERVICE RUN COUNTER TO THE PRINCIPLES OF INDIVIDUAL FREEDOM ON WHICH THIS COUNTRY WAS FOUNDED 9301150182 930115 WHO'S NEWS SOUTHWESTERN PUBLIC SERVICE CO SOUTHWESTERN PUBLIC SERVICE CO AMARILLO TEXAS SHIRLEY BIRD PERRY WAS NAMED TO THE BOARD OF THIS UTILITY MS PERRY 56 YEARS OLD IS VICE CHANCELLOR FOR DEVELOPMENT AND EXTERNAL RELATIONS FOR THE UNIVERSITY OF TEXAS SYSTEM BOARD MEMBER JOEL T WILLIAMS RETIRED 9301150180 930115 EXRALSTON OFFICIAL GOT 14 MILLION IN SEVERANCE ST LOUIS RALSTON PURINA CO PAID WILLIAM H LACEY THE FORMER HEAD OF ITS PET FOOD AND GROCERY BUSINESSES 14 MILLION IN SEVERANCE AFTER HIS UNEXPECTED DEPARTURE LAST FALL RALSTON'S PROXY STATEMENT DISCLOSES IT ALSO SAYS MR LACEY WILL BE PAID 250000 AS A CONSULTANT TO THE COMPANY THROUGH SEPTEMBER IN FISCAL 1991 MR LACEY A CORPORATE VICE PRESIDENT WAS PAID 427598 MR LACEY WHO HAS BEEN WITH RALSTON FOR 25 YEARS TOOK WHAT THE PROXY DESCRIBES AS RETIREMENT IN SEPTEMBER AT AGE 52 FOLLOWING SEVERAL DISAPPOINTING QUARTERS WHILE SALES FOR THE PET FOOD AND CEREAL OPERATIONS IN THE YEAR ENDED SEPT 30 WERE UP SLIGHTLY TO 23 BILLION OPERATING PROFIT FOR RALSTON'S GROCERY PRODUCTS GROUP DECLINED SUBSTANTIALLY THE COMPANY SAID WITHOUT DISCLOSING FIGURES RALSTON'S LATEST ANNUAL REPORT NOTING MR LACEY'S DEPARTURE THANKED HIM FOR HIS MANY CONTRIBUTIONS TO OUR GROCERY PRODUCTS BUSINESS OVER THE YEARS MR LACEY COULDN'T BE REACHED TO COMMENT ON HIS SEVERANCE PACKAGE 9301150179 930115 WHO'S NEWS LOCKHEED CORP LOCKHEED CORP CALABASAS CALIF FIVE DIRECTORS AND MANAGERS WERE NAMED VICE PRESIDENTS OF THEIR RESPECTIVE DIVISIONS WITH THIS AEROSPACE CONCERN'S LOCKHEED ADVANCED DEVELOPMENT CO UNIT MIKE EVANS 51 OVERSEES ADVANCED PROGRAMS BOB GOETZ 55 ENGINEERING AL LOCKE 57 MANUFACTURING PAUL MARTIN 46 THE F117 AIRCRAFT PROGRAM AND DENNY THOMPSON 50 BUSINESS MANAGEMENT AND PLANNING 9301150178 930115 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK E LYNN JOHNSON 48 YEARS OLD WAS NAMED PRESIDENT OF THE MEAD JOHNSON NUTRITIONAL GROUP AN EVANSVILLE IND UNIT OF THIS HEALTHCARE PRODUCTS CONCERN MR JOHNSON SUCCEEDS DONALD G HARRIS 60 WHO WILL RETIRE APRIL 1 CHARLES G THARP 41 SUCCEEDS MR JOHNSON AS SENIOR VICE PRESIDENT HUMAN RESOURCES AT THE PARENT MR THARP HAD BEEN VICE PRESIDENT OF COMPENSATION AND HUMAN RESOURCE DEVELOPMENT 9301150177 930115 INDEX SHOWS CONSTRUCTION MANUFACTURING PICKUP NEW YORK MANUFACTURING AND CONSTRUCTION COMPANIES REPORTED IMPROVING BUSINESS CONDITIONS IN DUN & BRADSTREET CORP'S LATEST MONTHLY SURVEY D&B'S INDUSTRIAL SENTIMENT INDEX WHICH LOOKS AT PRODUCTION NEW ORDERS INVENTORY LEVELS AND OTHER MEASURES ROSE IN DECEMBER FOR THE FIFTH CONSECUTIVE MONTH REACHING AN INDEX OF 8 THE HIGHEST LEVEL SINCE THE SURVEY BEGAN IN JANUARY 1990 AND THE INDEX FOR EXPECTATIONS IN THE NEXT THREE MONTHS ROSE TO 21 IN THE DECEMBER SURVEY FROM 14 A MONTH EARLIER SIMILARLY THE ORDER BOOKS INDEX FOR THE CURRENT PERIOD ROSE THREE POINTS IN DECEMBER TO NEGATIVE NINE THE SIXTH CONSECUTIVE MONTH OF IMPROVEMENT OR NO CHANGE HOWEVER THE INDEX REMAINS IN NEGATIVE TERRITORY INDICATING THAT MOST FIRMS STILL CONSIDER THEIR WORKFLOWS BELOW AVERAGE THE D&B SURVEY SAID THE INDEX IS CALCULATED BY SUBTRACTING THE PERCENTAGE OF RESPONDENTS EXPECTING A DECREASE FROM THE PERCENTAGE EXPECTING AN INCREASE THUS IN A PERIOD OF SLOW ECONOMIC ACTIVITY THE INDEX CAN SHOW A NEGATIVE READING 9301150176 930115 CANADIAN STEEL OUTPUT DROPS OTTAWA CANADIAN STEEL PRODUCTION TOTALED 232493 METRIC TONS LAST WEEK A 77 DECLINE FROM 251987 TONS THE PREVIOUS WEEK AND AN 85 DECLINE FROM 254014 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID 9301150175 930115 JENNIFER CONVERTIBLES SALES RISE PARAMUS NJ JENNIFER CONVERTIBLES INC SAID DECEMBER SALES ROSE 69 TO 59 MILLION FROM 35 MILLION COMPARABLE STORE SALES ROSE 42 FOR THE FOUR MONTHS ENDED DEC 31 SALES ROSE 65 TO 234 MILLION WHILE COMPARABLE STORE SALES ROSE 33 THE SOFA BED RETAILER OPERATES 34 WHOLLY OWNED STORES AND 59 LICENSED STORES 9301150174 930115 RHONEPOULENC RESULTS PARIS RHONEPOULENC SA A FRENCH STATECONTROLLED CHEMICAL AND PHARMACEUTICALS GROUP ISN'T SURE OF POSTING THE 10 RISE IN 1992 OPERATING PROFIT THAT IT PREDICTED THE COMPANY'S FINANCIAL DIRECTOR SAID JEANPIERRE TIROUFLET QUOTED IN THE FRENCH DAILY LE FIGARO SAID THAT WE WERE EXPECTING FOR 1992 A RISE OF 10 IN OUR OPERATING RESULT TODAY WE HAVE A FEELING THAT WE WILL BE A BIT BELOW THAT HE ADDED THAT THE RANGE GIVEN BY ANALYSTS FOR AN OPERATING PROFIT RISE OF BETWEEN 5 AND 10 IN 1992 IS A GOOD RANGE 9301150173 930115 WHAT'S NEWS WORLDWIDE THE US SAID AN AIR RAID ON IRAQ WAS A SUCCESS THOUGH DESTRUCTION WAS LIMITED THE PENTAGON DISCLOSED THAT WEDNESDAY'S ATTACKS ON SOUTHERN IRAQ DESTROYED ONLY ONE OF THE FOUR SURFACETOAIR MISSILE SITES TARGETED BUT INSISTED THAT THE MISSION ACHIEVED ITS TWO OBJECTIVES SENDING A MESSAGE TO IRAQ'S SADDAM HUSSEIN AND DEALING WITH AN IRAQI THREAT TO ALLIED AIRCRAFT MEANWHILE CLINTON EXPRESSED SUPPORT FOR THE RAID DECLARING THAT HE HAS NO INTENTION OF NORMALIZING RELATIONS WITH THE IRAQI LEADER SADDAM HUSSEIN CLAIMED THE ALLIED RAID CAUSED ONLY SUPERFICIAL DAMAGE NOTING THAT MOSTLY NONMILITARY BUILDINGS WERE DAMAGED THE PENTAGON SAID ONE UNINTENDED TARGET WAS HIT CLINTON SELECTED A DIVERSE GROUP FOR HIS SENIOR WHITE HOUSE STAFF THE PRESIDENTELECT ANNOUNCED OVER 50 APPOINTMENTS TO THE STAFF OF HIS OFFICE AND THOSE OF THE VICE PRESIDENT AND FIRST LADY THE NEW STAFF MEMBERS REPRESENT THE LIBERAL AND MODERATE WINGS OF THE DEMOCRATIC PARTY MOST HAVE ONLY LIMITED WASHINGTON EXPERIENCE WE WILL MAKE THE WHITE HOUSE A PLACE OF TEAMWORK AND FREE FLOW OF IDEAS CLINTON PLEDGED HE CHOSE DAVID WILHELM TO LEAD THE DEMOCRATIC NATIONAL COMMITTEE DOZENS OF ADDITIONAL LOWERLEVEL APPOINTMENTS ARE PENDING AIDES SAY CLINTON IS UNLIKELY INITIALLY TO MEET HIS CAMPAIGN PLEDGE TO REDUCE THE WHITE HOUSE STAFF BY 25 ZOE BAIRD FACED POSSIBLE PROBLEMS DURING HER SENATE CONFIRMATION HEARINGS FOR US ATTORNEY GENERAL AS A RESULT OF HER 1990 DECISION TO EMPLOY TWO PERUVIANS LIVING ILLEGALLY IN THE US AS HER CHILDCARE PROVIDER AND DRIVER WITHOUT PAYING SOCIAL SECURITY TAXES DURING THEIR TIME OF EMPLOYMENT CLINTON BROADCAST A RADIO MESSAGE TO HAITI APPEALING TO HAITIANS NOT TO FLEE TO THE US BY BOAT AND SAYING THOSE WHO DO WOULD BE SENT BACK REVERSING AN EARLIER PLEDGE TO GRANT REFUGE TO THE HAITIANS THE PRESIDENTELECT SAID HE WOULD CONTINUE FOR THE TIME BEING THE BUSH ADMINISTRATION'S POLICY OF FORCIBLY RETURNING THE REFUGEES SECRETARY OF STATE EAGLEBURGER VOICED SKEPTICISM ABOUT A COMPROMISE AGREEMENT TO END BOSNIA'S CIVIL WAR SAYING BOSNIAN SERB LEADER KARADZIC IS A LIAR WHO CAN'T BE TRUSTED TO CARRY OUT ITS TERMS SPEAKING TO REPORTERS ABOARD A FLIGHT FROM PARIS EAGLEBURGER SAID HE WOULD REMAIN SKEPTICAL ABOUT TUESDAY'S ACCORD UNTIL IT IS IMPLEMENTED THE BUSH ADMINISTRATION EXPECTS TO WIN APPROVAL OF A 10 MILLION TRANSFER OF INTELLIGENCE FUNDS TO BUY BACK AMERICANMADE GROUNDTOAIR STINGER MISSILES FROM AFGHAN GUERRILLA FORCES A DENVER JUDGE TEMPORARILY BLOCKED COLORADO'S ANTIGAYPROTECTION LAW FROM TAKING EFFECT TODAY THE JUDGE SAID HE WANTED MORE TIME TO DECIDE WHETHER TO ISSUE A MORE PERMANENT BAN ON THE AMENDMENT WHICH PROHIBITS THE PASSAGE OF LEGISLATION PROTECTING HOMOSEXUALS FROM DISCRIMINATION DONNA SHALALA SAID THAT SAVINGS FROM MEDICARE AND MEDICAID SHOULD BE USED TO EXPAND HEALTH COVERAGE TO ALL AMERICANS NOT TO REDUCE THE FEDERAL DEFICIT CLINTON'S CHOICE FOR SECRETARY OF HEALTH AND HUMAN SERVICES MADE THE COMMENT DURING A SENATE FINANCE COMMITTEE NOMINATION HEARING CHEMICAL ENGINEERS REPORTED TWO NEW AND POTENTIALLY CHEAPER METHODS OF CONVERTING NATURAL GAS TO ALCOHOL OR OTHER LIQUID FUELS THAT COULD BE SHIPPED TO MARKETS MORE EASILY AND SAFELY A FEDERAL JUDGE REFUSED TO LIFT HIS ORDER DIRECTING THE WHITE HOUSE TO PRESERVE FEDERAL RECORDS ON COMPUTERS AND BACKUP TAPES HE REJECTED CLAIMS THAT PRESERVING THE ELECTRONICMAIL MESSAGES WOULD DISRUPT THE PRESIDENTIAL TRANSITION THE BUSH ADMINISTRATION IMMEDIATELY FILED AN APPEAL THE US WILL KEEP A VERY LARGE PRESENCE IN SOMALIA AFTER A UN PEACEKEEPING FORCE ASSUMES MILITARY COMMAND A US ENVOY SAID A USLED TASK FORCE BEGAN ARRIVING IN SOMALIA EARLY LAST MONTH AND HAS EXPANDED TO 34000 MILITARY PERSONNEL THE AIR FORCE HAS DECIDED ON A RELATIVELY SIMPLE AND INEXPENSIVE METHOD TO CORRECT THE B2 STEALTH BOMBER'S PROBLEMS WITH ITS ABILITY TO EVADE RADAR AIR FORCE SECRETARY RICE SAID PROBLEMS WITH RADAR DETECTION OF THE BOMBER SURFACED IN MID1991 9301150172 930115 INTERNATIONAL WHITBREAD TO CLOSE 2 FACILITIES LONDON WHITBREAD PLC A BRITISH BREWER ANNOUNCED IT WILL CLOSE ITS SHEFFIELD BREWERY AND MARLOW DISTRIBUTION DEPOT IN THE NORTH AND SOUTH OF ENGLAND RESPECTIVELY BY THIS SUMMER A REVIEW OF THE COMPANY'S BEER OPERATIONS ALSO WILL RESULT IN CHANGES AT THE BEER DIVISION'S HEADQUARTERS AND TO DISTRIBUTION OPERATIONS IN SOUTHERN ENGLAND THE CLOSURES AND OTHER RATIONALIZATIONS WILL CUT 321 JOBS THOUGH WHITBREAD SAID THE CHANGES WILL PROVIDE NEW JOB OPPORTUNITIES AT OTHER WHITBREAD LOCATIONS THE COMPANY SAID PRODUCTION AT SHEFFIELD AND DISTRIBUTION AT MARLOW WILL BE MOVED TO OTHER SITES 9301150171 930115 INTERNATIONAL WESTPAC HOLDER KERRY PACKER AIDE RESIGN FROM BOARD BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA KERRY PACKER THE SECONDLARGEST SHAREHOLDER IN WESTPAC BANKING CORP AND AN ASSOCIATE BOTH RESIGNED AFTER ONLY A FEW DAYS AS DIRECTORS AT AUSTRALIA'S OLDEST BANK THE APPOINTMENTS OF MR PACKER AND AL DUNLAP WHO OVERSEES MR PACKER'S CLOSELY HELD PUBLISHING INTERESTS FOLLOWED A NOVEMBER STOCK MARKET RAID IN WHICH MR PACKER BUILT UP NEARLY A 10 STAKE IN WESTPAC NEITHER MR DUNLAP NOR MR PACKER WOULD COMMENT ON THEIR RESIGNATIONS OR STRATEGY REGARDING WESTPAC WESTPAC SHARES WHICH HAVE BEEN HAMMERED FOR MONTHS ON BAD NEWS ABOUT EARNINGS AND MANAGEMENT TROUBLE DROPPED 14 AUSTRALIAN CENTS 94 US CENTS OR 46 TO A290 ON THE NEWS WESTPAC SAID THE RESIGNATIONS STEMMED FROM A DISAGREEMENT ABOUT THE FRAMEWORK FOR MANAGEMENT OF THE BANK'S RECOVERY PROGRAM BEFORE MR PACKER'S INVOLVEMENT THE BANK'S SENIOR MANAGEMENT HAD ENDORSED A PLAN FOR A GRADUAL RESTRUCTURING THROUGH COSTCUTTING AND SHRINKING CERTAIN BUSINESSES BY 1995 UNDER THAT PLAN BETWEEN 10 AND 20 OF STAFF POSITIONS WOULD BE ABOLISHED WITHIN THE NEXT THREE YEARS IT IS WIDELY BELIEVED THAT MESSRS PACKER AND DUNLAP INTENDED TO PLOT MORE SEVERE COSTCUTTING WHICH SOME BANK ANALYSTS WORRIED MIGHT PROVIDE SHORTTERM BENEFITS BUT DAMAGE THE BANK IN THE LONGER TERM MR PACKER RECRUITED MR DUNLAP AN AMERICAN TO RESTRUCTURE THE PACKER FAMILY'S CORPORATE HOLDINGS AND HE HAS SO SLASHED THE OPERATIONS THAT HE IS KNOWN IN BUSINESS CIRCLES AS CHAINSAW SPECULATION IS SWIRLING ABOUT MR PACKER'S INTENTIONS NOW HALF OF HIS HOLDING IS IN THE FORM OF OPTIONS THAT ARE TO BE EXERCISED AT THE END OF THIS MONTH IF THE OPTIONS ARE TAKEN UP THE 10 STAKE WILL HAVE COST MR PACKER AUSTRALIA'S ONLY BILLIONAIRE AN ESTIMATED A500 MILLION US335 MILLION SOME ANALYSTS SAID MR PACKER MAY RETREAT WHILE OTHERS SAY THE OPPOSITE AMONG THE STRONGEST SPECULATION IN THE STOCK MARKET YESTERDAY WAS THAT MR PACKER IS ATTEMPTING TO GARNER SUPPORT FROM OTHER WESTPAC STOCKHOLDERS TO OUST SEVERAL BOARD MEMBERS WE THINK THE GAME HAS JUST BEGUN SAID TIM HUGHES INVESTMENT MANAGER AT ROTHSCHILD AUSTRALIA ASSET MANAGEMENT LTD A BIG WESTPAC SHAREHOLDER 9301150170 930115 CANADA'S BANKS CUT PRIME RATES OTTAWA CANADA'S MAJOR BANKS REDUCED THEIR PRIME LENDING RATES TO 675 FROM 7 EFFECTIVE TODAY IT WAS THE SECOND SUCH CUT THIS WEEK IN THE PRIME RATE THE BENCHMARK FOR VARIOUS BANK LENDING CHARGES THE REDUCTIONS HAVE BEEN PROMPTED BY A DECLINE IN SHORTTERM INTEREST RATES IN THE CANADIAN MONEY MARKET 9301150169 930115 WHO'S NEWS CITIZENS FIRST BANCORP INC CITIZENS FIRST BANCORP INC GLEN ROCK NJ DOUGLAS H DITTRICK 59 YEARS OLD WAS NAMED A DIRECTOR AT THIS BANK HOLDING COMPANY AND ITS CITIZENS FIRST NATIONAL BANK OF NEW JERSEY UNIT MR DITTRICK IS FOUNDER PRESIDENT AND CHIEF EXECUTIVE OF DOUGLAS COMMUNICATIONS CORP II WHICH ACQUIRES AND OPERATES CABLE TELEVISION COMPANIES HE INCREASES THE BOARD TO 11 MEMBERS 9301150168 930115 WHO'S NEWS MEDCO RESEARCH INC MEDCO RESEARCH INC LOS ANGELES EUGENE L STEP A FORMER LONGTIME EXECUTIVE OF ELI LILLY & CO WAS NAMED A DIRECTOR OF THIS PHARMACEUTICAL RESEARCH CONCERN HE SUCCEEDS MARVIN HAUSMAN 51 YEARS OLD A MEDCO COFOUNDER WHO RETIRED MR STEP 63 WAS EXECUTIVE VICE PRESIDENT AND A DIRECTOR OF ELI LILLY AN INDIANAPOLIS DRUG CONCERN UNTIL HE RETIRED LAST YEAR 9301150167 930115 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK MARK M WEINSTEIN 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF GOVERNMENT AFFAIRS AT VIACOM INTERNATIONAL INC A UNIT OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN WHICH IS 76OWNED BY NATIONAL AMUSEMENTS INC DEDHAM MASS MR WEINSTEIN WHOSE APPOINTMENT IS EFFECTIVE FEB 1 HAD BEEN SENIOR VICE PRESIDENT AND GENERAL COUNSEL HIS SUCCESSOR IS DUE TO BE NAMED SHORTLY MR WEINSTEIN WILL BE RESPONSIBLE FOR PUBLIC POLICY ISSUES AFFECTING THE COMPANY FROM A VIACOM OFFICE SOON TO BE OPENED IN WASHINGTON 9301150166 930115 FINANCING BUSINESS MICHAELS STORES INC MICHAELS STORES INC IRVING TEXAS SAID IT PLANS A PUBLIC OFFERING OF 85 MILLION OF CONVERTIBLE SUBORDINATED NOTES PROCEEDS WILL BE USED TO EXPAND STORES AND DISTRIBUTION CENTERS AS WORKING CAPITAL AND FOR GENERAL CORPORATE PURPOSES THE COMPANY SAID THE ARTS AND CRAFTS RETAILER SAID THE NOTES WHICH MATURE IN 2003 CAN BE CONVERTED TO COMMON AT ANY TIME BEFORE MATURITY AT A PRICE OF 38 A SHARE THE NOTES WILL ACCRUE INTEREST AT 475 THROUGH JAN 14 1996 AND AT 675 THEREAFTER THE OFFERING IS BEING MANAGED BY A GROUP LED BY FIRST BOSTON CORP THE COMPANY SAID IT GRANTED UNDERWRITERS AN OPTION TO PURCHASE AN ADDITIONAL 128 MILLION OF NOTES TO COVER OVERALLOTMENTS 9301150165 930115 CHIP MAKER'S PROFIT SURGES SAN JOSE CALIF ATMEL CORP SAID SURGING CHIP DEMAND FROM COMPUTER AND TELECOMMUNICATIONS MARKETS POWERED A SURGE IN FOURTHQUARTER EARNINGS TO 47 MILLION OR 25 CENTS A SHARE FROM 909000 OR FIVE CENTS A SHARE A YEAR EARLIER FOURTHQUARTER REVENUE ROSE 54 TO 409 MILLION FROM 266 MILLION THE COMPANY SAID ITS INCREASED CATALOG OF PRODUCTS ALSO CONTRIBUTED TO THE GROWTH FROM LOWVOLTAGE INTEGRATED CIRCUITS TO EEPROMS OR ELECTRICALLY ERASABLE PROGRAMMABLE READONLY MEMORY CHIPS FOR THE FULL YEAR ATMEL REPORTED EARNINGS OF 139 MILLION OR 77 CENTS A SHARE UP 35 FROM 103 MILLION OR 61 CENTS A SHARE REVENUE ROSE 16 TO 1398 MILLION FROM 1204 MILLION 9301150164 930115 WHO'S NEWS QUAKER OATS TAPS ITS OPERATIONS CHIEF TO BE NEW PRESIDENT CHICAGO QUAKER OATS CO NAMED AS ITS PRESIDENT PHILIP A MARINEAU AN EXECUTIVE WHO HAS TIED HIS CAREER TO THE FOOD COMPANY'S MOST IMPORTANT PRODUCT GATORADE THIRST QUENCHER THE COMPANY ALSO PROMOTED ROBERT S THOMASON THE HEAD OF ITS EUROPEAN OPERATIONS TO SENIOR VICE PRESIDENTINTERNATIONAL GROCERY PRODUCTS AN OFFICE THAT HAS BEEN VACANT FOR MORE THAN A YEAR MR MARINEAU 46 YEARS OLD HAS BEEN AN EXECUTIVE VICE PRESIDENT SINCE 1987 HE WAS NAMED CHIEF OPERATING OFFICER LAST JULY BUT AT THE TIME QUAKER'S BOARD WITHHELD THE PROMOTION TO PRESIDENT WILLIAM D SMITHBURG 54 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD RETAINED THAT TITLE AFTER ASSUMING IT UPON THE RETIREMENT OF FRANK MORGAN IN 1990 A COMPANY SPOKESMAN SUGGESTED THAT THE DELAY REFLECTED A DESIRE BY DIRECTORS TO SHOW THAT A MAJOR REVISION IN THE TIMING OF PRODUCT PROMOTION SPENDING WHICH MR MARINEAU HAD BACKED WOULD WORK WHEN ANNOUNCED LAST SPRING THE COMPANY ACKNOWLEDGED THE CHANGE WOULD BE CONTROVERSIAL BY TYING A CHUNK OF EXECUTIVE BONUSES TO ITS SUCCESS MR MARINEAU JOINED QUAKER IN 1972 OUT OF COLLEGE AND ROSE THROUGH PRODUCT MANAGEMENT GROCERY SPECIALTIESMARKET DEVELOPMENT AND INTERNATIONAL GROCERIES OPERATIONS EVENTUALLY HEADING THE NORTH AND SOUTH AMERICAN GROCERY PRODUCTS UNIT WHEN QUAKER FORMED A SEPARATE DIVISION TO PROMOTE GATORADE SALES WORLDWIDE LAST YEAR MR MARINEAU WAS GIVEN OVERSIGHT ELECTED A DIRECTOR IN 1990 HE WAS PAID 715616 IN FISCAL 1992 MR THOMASON 48 HAS HEADED EUROPEAN OPERATIONS SINCE LAST YEAR SUCCEEDING GIULIO MALGARA WHO LEFT THE COMPANY IN WHAT BECAME AN UNSUCCESSFUL BID FOR PART OF QUAKER'S BUSINESS IN ITALY MR THOMASON WILL REPORT TO MR MARINEAU AS WILL JAMES F DOYLE 40 WHO HEADS THE GATORADE DIVISION 9301150162 930115 SMALL INVESTORS HELP STOCKBROKERS BREAK SIXFIGURE BARRIER FOR THE FIRST TIME THEIR PAY HITS THAT LUCRATIVE LEVEL AVERAGING 114000 IN 1992 BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S STOCKBROKERS BUOYED BY THE RETURN OF SMALL INVESTORS TO STOCKS HAVE HIT A NEW PAY PEAK SIX FIGURES BROKERS WERE PAID AN AVERAGE OF 114000 IN 1992 ESTIMATES ADRIAN L BANKY EXECUTIVE VICE PRESIDENT AT THE SECURITIES INDUSTRY ASSOCIATION THIS IS THE FIRST TIME BROKERS' ANNUAL PAY AVERAGED MORE THAN 100000 THE TRADE GROUP SAYS AND IS 16 HIGHER THAN 1991'S AVERAGE PAY OF 98401 THE PRIOR RECORD WITH INTEREST RATES LOW MONEY WAS COMING OUT OF BANKS LIKE IT WAS GOING OUT OF STYLE SAYS PAUL HAUSER A BROKER AT PRUDENTIAL SECURITIES INC IN RED BANK NJ BUT MR HAUSER WHO SAYS HIS 1992 PAY JUMPED 20 TO MORE THAN 120000 HINTS THAT HE'D LIKE A STILL FATTER PAYCHECK YOU CAN ALWAYS BE HAPPIER HE SAYS UNLIKE THE BULK OF WORKERS IN CORPORATE AMERICA THE PAY OF MOST OF THE NATION'S 84000 STOCKBROKERS IS TIED DIRECTLY TO THE TRADING COMMISSIONS THEY GENERATE BROKERS GET TO KEEP A CHUNK OF THESE COMMISSIONS TYPICALLY 25 TO 45 DEPENDING ON THEIR OVERALL LEVEL OF BUSINESS AND THE TYPES OF PRODUCTS THEY SELL POWERING LAST YEAR'S BIG JUMP WAS STRONG ACTIVITY BY SMALL INVESTORS MANY INDIVIDUAL INVESTORS UNHAPPY WITH THE MEAGER RETURNS ON CERTIFICATES OF DEPOSIT AND MONEYMARKET ACCOUNTS PLOWED PART OF THEIR PORTFOLIOS INTO STOCKS BONDS AND MUTUAL FUNDS NET SALES OF STOCK MUTUAL FUNDS FOR INSTANCE TOTALED 68 BILLION IN 1992'S FIRST 11 MONTHS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE THAT'S DOUBLE THE LEVEL OF A YEAR EARLIER AND IS 59 HIGHER THAN THE TOTAL FOR ALL OF 1991 THE MUTUALFUND TRADE GROUP SAYS TRADITIONAL CD BUYERS WERE MOVING MONEY OFF THE SIDELINES AND DOING MORE AGGRESSIVE THINGS LIKE MUTUAL FUNDS AND INDIVIDUAL STOCKS SAYS MR HAUSER MEANWHILE BROKERS' 1992 MEDIAN PAY THE LEVEL THAT SEPARATES THE TOP AND BOTTOM HALVES OF BROKERS' PRODUCTION WAS 76000 MR BANKY ESTIMATES THIS IS 19 HIGHER THAN 1991'S MEDIAN PAY OF 63613 BUT ONETHIRD BELOW 1992'S AVERAGE PAY THE GAP IS PARTLY DUE TO THE MINORITY OF STAR BROKERS WHO EARN 1 MILLION OR MORE THESE BIG PRODUCERS BOOSTED AVERAGE PAY LEVELS BROKERAGE EXECUTIVES SAY 9301150161 930115 INTERNATIONAL NISSAN MAZDA IN TALKS ON SUPPLYING CERTAIN VEHICLES TO EACH OTHER TOKYO NISSAN MOTOR CO PRESIDENT YOSHIFUMI TSUJI SAID NISSAN AND MAZDA MOTOR CORP ARE NEGOTIATING TO SUPPLY EACH OTHER WITH COMMERCIAL VEHICLES A MOVE THAT COULD HELP THE BATTERED JAPANESE AUTO MAKERS CUT THEIR BLOATED PRODUCTION COSTS MR TSUJI SPEAKING AT A NEWS CONFERENCE IN NAGOYA DIDN'T SPECIFY THE TYPE OR NUMBER OF VEHICLES INVOLVED A NISSAN SPOKESWOMAN COMMENTING ON LOCAL PRESS REPORTS DENIED THAT THE COMPANIES HAVE ALREADY AGREED IN PRINCIPLE THAT NISSAN WILL SUPPLY MAZDA WITH 10000 MINIVANS A YEAR AND THAT MAZDA WILL MAKE 10000 SMALL TRUCKS FOR NISSAN MAZDA SAID IT IS STUDYING THE IDEA OF SWAPPING VEHICLES BUT HASN'T YET BEGUN FULLFLEDGED TALKS WITH NISSAN BECAUSE DEVELOPMENT COSTS MOUNT WITH VEHICLES THAT SELL IN SMALL NUMBERS MUTUAL SUPPLY HAS GREAT MERIT MR TSUJI SAID SEPARATELY FORD MOTOR CO AND MAZDA SAID THEY ARE STILL DISCUSSING JOINT PRODUCTION OF A VEHICLE FOR THE EUROPEAN MARKET BUT A FORD SPOKESMAN SAID WORSENING ECONOMIC CONDITIONS IN EUROPE HAVE CAST A CLOUD OVER THE PROPOSAL A MAZDA SPOKESMAN IN THE US REACTING TO JAPANESE PRESS REPORTS THAT THE EUROPEAN VENTURE COULD BE ABANDONED SAID WEDNESDAY THAT TALKS WITH FORD ARE CONTINUING AND WE HOPE TO CONCLUDE THE TALKS IN THE NEXT 30 TO 60 DAYS MAZDA WHICH IS 25OWNED BY FORD IS ALSO NEGOTIATING EUROPEAN PRODUCTION TIEUPS WITH OTHER CAR MAKERS ACCORDING TO A MAZDA SPOKESMAN IN JAPAN IF THE NISSAN AND MAZDA COSTCUTTING MOVES PAN OUT THEY WOULD BE IN LINE WITH A RECENT SERIES OF MEASURES BY JAPANESE AUTO MAKERS STRUGGLING WITH A SALES SLUMP AT HOME AND ABROAD MOST CAR COMPANIES HAVE UNVEILED PLANS TO REDUCE THE NUMBER OF PARTS THEY USE AND SOME ARE TRIMMING THEIR PRODUCT LINES ISUZU MOTORS LTD FOR INSTANCE SAYS IT WILL STOP DEVELOPING PASSENGER CARS AND FOCUS ON MAKING TRUCKS ISUZU AND HONDA MOTOR CO SAY THEY PLAN TO SUPPLY EACH OTHER WITH RECREATIONAL VEHICLES AND PASSENGER CARS NISSAN AND MAZDA HAVE BEEN HIT PARTICULARLY HARD BY THE SLUMP IN CAR SALES NISSAN POSTED ITS FIRST LOSS SINCE 1946 FOR THE SIX MONTHS ENDED SEPT 30 MAZDA WHICH LAST YEAR LAUNCHED A WAVE OF NEW MODELS HAS BEEN FORCED TO SLASH SPENDING IN RECENT MONTHS WITHIN THE PAST YEAR MAZDA KILLED A PREVIOUSLY ANNOUNCED PROGRAM TO BEGIN A LUXURYCAR DIVISION IN THE US AND SOLD TO FORD AN EQUITY STAKE IN ITS ASSEMBLY PLANT IN FLAT ROCK MICH 9301150159 930115 SUNTORY'S BUDWEISER LINK TOKYO SUNTORY LTD A CLOSELY HELD JAPANESE BREWERY SAID IT WILL CONTINUE DISTRIBUTING ANHEUSERBUSCH COS' BUDWEISER BRAND BEER IN 1993 DESPITE TALK OF A TIEUP BETWEEN THE US COMPANY AND COMPETITOR KIRIN BREWERY CO SUNTORY SAID IT HAS REACHED AN AGREEMENT WITH ANHEUSERBUSCH TO SELL EIGHT MILLION CASES OF BUDWEISER IN JAPAN DURING THE CURRENT YEAR IN ST LOUIS ANHEUSERBUSCH OFFICIALS COULDN'T BE REACHED FOR COMMENT 9301150158 930115 BUSINESS BRIEF GENERAL SIGNAL TO SHED SEMICONDUCTOR ARM AND TAKE A CHARGE STAMFORD CONN GENERAL SIGNAL CORP SAID IT WILL SHED ITS SEMICONDUCTOR EQUIPMENT OPERATIONS TAKING AN 856 MILLION PRETAX CHARGE OR 582 MILLION AFTERTAX IN THE FOURTH QUARTER GENERAL SIGNAL SAID IT IS CONSIDERING SEVERAL OPTIONS FOR THE SEMICONDUCTOR OPERATIONS INCLUDING A PUBLIC OFFERING A MANAGEMENT BUYOUT AN OUTRIGHT SALE OR CLOSURE IN THE FIRST NINE MONTHS THROUGH SEPT 30 SEMICONDUCTOR EQUIPMENT OPERATIONS LOST ABOUT 7 MILLION OR 26 CENTS A SHARE ON REVENUE OF 135 MILLION IN THE 1991 FOURTH QUARTER GENERAL SIGNAL HAD NET INCOME OF 88 MILLION OR 45 CENTS A SHARE ON SALES OF 414 MILLION GENERAL SIGNAL ALSO SAID IT WILL ADOPT ACCOUNTING STANDARDS FOR POSTRETIREMENT BENEFITS AND INCOME TAXES THE COMPANY SAID IT WILL REQUIRE A ONETIME AFTERTAX CATCHUP CHARGE OF 96 MILLION OR 497 A SHARE FOR POSTRETIREMENT BENEFITS WHILE THE CATCHUP EFFECT OF THE INCOME TAX ACCOUNTING CHANGE IS ESTIMATED TO BE A 37 MILLION CREDIT GENERAL SIGNAL MANUFACTURES EQUIPMENT AND INSTRUMENTS FOR ELECTRICAL AND INDUSTRIAL APPLICATIONS 9301150157 930115 WORLD MARKETS STOCKS CLIMB ON MOST BIG EXCHANGES AS INVESTORS IGNORE WESTERN ATTACK ON IRAQ OR SIGH IN RELIEF A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES GENERALLY CHALKED UP GAINS THURSDAY ON BOURSES ACROSS EUROPE AND ASIA AS INVESTORS EITHER IGNORED OR WERE RELIEVED BY THE SUCCESSFUL WESTERN AIR STRIKE LATE THE PREVIOUS DAY AGAINST IRAQ FOR VIOLATIONS OF A UNITED NATIONS AGREEMENT TOKYO SHARES EASED AS INVESTORS BECAME INCREASINGLY CAUTIOUS FOR FUNDAMENTAL REASONS RELATED TO THE JAPANESE ECONOMY THOUGH SOME PARTICIPANTS WERE UNEASY THAT THE MIDEAST SITUATION COULD LEAD TO A SECOND GULF WAR LONDON STOCKS REVERSED A SEVENSESSION LOSING STREAK TO FINISH FIRMER PROPELLED ONLY PARTLY BY THE OUTCOME OF THE ALLIED MILITARY ATTACK FRANKFURT PRICES ADVANCED AS FEARS OF A BROAD PERSIAN GULF CONFLICT EBBED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAVE UP 16314 POINTS WEDNESDAY SLIPPED 231 TO 1651560 THE SEVENTH DECLINE IN THE PAST EIGHT SESSIONS FIRST SECTION VOLUME WAS ESTIMATED AT A THIN 170 MILLION SHARES DOWN FROM 2034 MILLION SHARES A DAY EARLIER RETREATING ISSUES OUTPACED ADVANCING ISSUES 589277 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH DROPPED 1052 POINTS WEDNESDAY DECLINED 355 TO 126791 INDIVIDUAL AND INSTITUTIONAL INVESTORS LARGELY CONTINUED TO STEER CLEAR OF THE TOKYO MARKET PARTICULARLY AHEAD OF A THREEDAY WEEKEND THE STOCK MARKET IS CLOSED FRIDAY FOR A NATIONAL HOLIDAY IN JAPAN THE NIKKEI ON THURSDAY SPENT MUCH OF THE SESSION BELOW 16500 BUT GOT A BOOST IN THE FINAL HOUR FROM BUYING BY ARBITRAGERS AND PUBLIC PENSION FUNDS SOME FRESH ECONOMIC DATA THAT SHOWED SUSTAINED WEAKNESS IN THE JAPANESE ECONOMY A RECORD 11 SLIDE IN TOKYOAREA DEPARTMENT STORES' DECEMBER SALES FROM A YEAR EARLIER WEIGHED ON THE ALREADY FRAGILE MARKET SENTIMENT MANY PARTICIPANTS BELIEVED THE NIKKEI SEEMED POISED FOR A SLIDE TO THE 16000 LEVEL SOON BECAUSE THE MARKET LACKS ANY INCENTIVES TO LURE BACK INVESTORS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 139 POINTS TO 27592 THOUGH THE FINISH WAS OFF THE 27713 INTRADAY HIGH IT ALSO WAS WELL ABOVE THE OPENING LOW OF 27518 THE FT 30STOCK INDEX ROSE 110 POINTS TO 21406 VOLUME WAS 6176 MILLION SHARES COMPARED WITH 6528 MILLION SHARES A DAY EARLIER LONDON'S ADVANCE WAS MAINLY A TECHNICAL BOUNCE IN THE WAKE OF THE EXTENDED STEEP RETREAT MARKET SENTIMENT HADN'T FUNDAMENTALLY CHANGED PRICES WERE PROPELLED HIGHER IN THE EARLY GOING BY THE MIDEAST NEWS EXPECTATIONS OF A SLIGHT EASING OF BRITAIN'S BASE LENDING RATES AND ANTICIPATION OF A STRONG WALL STREET OPENING WHEN THE LATTER FAILED TO MATERIALIZE LONDON STOCKS DRIFTED DOWN FROM INTRADAY PEAKS SOME SELLING EMERGED LATE IN THE SESSION AHEAD OF TODAY'S CLOSE OF THE TWOWEEK ACCOUNT AS INVESTORS UNWOUND SOME POSITIONS THEY HAD TAKEN EARLIER THIS MONTH IN ANTICIPATION OF A RALLY INVESTMENT DECISIONS HAVE LARGELY BEEN PUT ON HOLD PENDING FIRSTQUARTER EVENTS INCLUDING CORPORATE EARNINGS REPORTS THE BRITISH BUDGET AND BOND FUNDING IN FRANKFURT THE DAX 30STOCK INDEX ROSE 724 POINTS TO 152374 AS INVESTORS NOT ONLY WERE RELIEVED ABOUT THE OUTCOME OF THE MILITARY STRIKE IN IRAQ BUT WERE ENCOURAGED BY POSITIVE GERMAN CORPORATE NEWS ELSEWHERE IN EUROPE PARIS STOCKS GAINED DESPITE LATE PROFITTAKING THE ADVANCE HALTING A THREESESSION STRING OF LOSSES WAS LED BY ISSUES ENSITIVE TO INTEREST RATES AMSTERDAM PRICES FINISHED MOSTLY HIGHER EVEN AFTER A MODEST RETREAT NEAR THE CLOSE FOREIGN INVESTORS LED THE BUYING ALSO FUELED BY ADJUSTMENTS AHEAD OF TODAY'S CONTRACT EXPIRATION ON THE OPTIONS EXCHANGE MILAN SHARES ROSE ON EXPECTATIONS THAT ITALY'S CABINET SOON WOULD APPROVE AN INCENTIVE PACKAGE FOR INVESTORS MADRID EQUITIES RALLIED BOOSTED BY EXPECTATIONS OF BULLISH SPANISH INFLATION DATA TO BE RELEASED TODAY ZURICH EQUITIES CLIMBED AS FOREIGN INVESTORS WERE ATTRACTED BY THE DOWNWARD TREND OF SWISS INTEREST RATES AND THE SWISS FRANC'S STABILITY AND BOUGHT BANKING AND INSURANCE STOCKS CONSIDERED UNDERVALUED BY GLOBAL STANDARDS BRUSSELS SHARES WERE NARROWLY MIXED TO HIGHER ON PURCHASES OF INTEREST RATESENSITIVE ISSUES BUT IN STOCKHOLM SHARES FELL STRETCHING THEIR SLIDE TO SEVEN CONSECUTIVE SESSIONS DESPITE A DROP IN MONEY MARKET RATES AS INVESTORS WERE HESITANT BECAUSE OF WORRIES ABOUT THE SWEDISH FINANCIAL SECTOR POLITICAL INSTABILITY IN SCANDINAVIA AND THE MIDEAST SITUATION THE ATTACK ON IRAQ WENT NEARLY UNNOTICED ON THE BIG ASIAN AND PACIFIC EXCHANGES WHERE OUTSIDE JAPAN INVESTORS ARE INCREASINGLY LOOKING AT REGIONAL SIGNALS RATHER THAN TAKING CUES FROM THE WEST SYDNEY STOCKS REBOUNDED DESPITE A DROP IN THE AUSTRALIAN DOLLAR AND NEW DATA SHOWING AUSTRALIA'S LABOR MARKET REMAINS WEAK SINGAPORE SHARES CRUISED HIGHER LED BY SHARP GAINS IN BLUE CHIPS HONG KONG EQUITIES STRENGTHENED FOR THE THIRD GAIN IN AS MANY SESSIONS AMID CONTINUED SERIOUS INTEREST BY FOREIGN INVESTORS AS THE POLITICAL CONCERNS ABOUT THE TERRITORY'S FUTURE EASED SOMEWHAT TAIPEI EQUITIES GAINED ON NEWS THAT THE TAIWAN GOVERNMENT PLANS TO CONSIDER CUTTING THE STOCK TRANSACTION TAX SEOUL SHARES FELL IN A CORRECTION AFTER RECENT OVERHEATED TRADING THE MARKET WAS DAMPED BY UNEASINESS ABOUT POLITICS THOUGH A WAVE OF HECTIC AND SPECULATIVE BUYING WANED AS INVESTORS APPEARED TO BE TURNING TO FUNDAMENTALS AMONG CORPORATE DEVELOPMENTS IN LONDON RANK ORGANISATION DROPPED 9 PENCE OR 13 TO 704 PENCE 1089 THE ENTERTAINMENT AND HOTEL COMPANY'S PRETAX PROFIT FOR THE YEAR ENDED OCT 31 FELL 81 TO 2301 MILLION 3561 MILLION FROM A YEAR EARLIER AS RECESSION HIT CONSUMER AND BUSINESS SPENDING THE RESULTS WERE AT THE BOTTOM END OF MARKET EXPECTATIONS TSB GROUP ADVANCED 950 OR 65 TO 156 THE BANK POSTED PRETAX PROFIT FOR THE YEAR ENDED OCT 31 OF 43 MILLION COMPARED WITH A YEAREARLIER LOSS OF 47 MILLION AS BADDEBT CHARGES WERE REDUCED TO 597 MILLION FROM 654 MILLION BRITISH AIRWAYS CLIMBED 750 OR 28 TO 27450 EVEN THOUGH THE CARRIER'S WOES FROM ITS DIRTY TRICKS CAMPAIGN AGAINST VIRGIN ATLANTIC AIRWAYS DIDN'T END WITH THE BRITISH AIR PUBLIC APOLOGY MONDAY AND 610000 SETTLEMENT REGULATORS ASKED VIRGIN FOR INFORMATION ABOUT BRITISH AIRWAYS' ALLEGED USE OF INFORMATION STORED IN COMPUTER RESERVATION SYSTEMS IF SUCH ACTIONS VIOLATED BRITISH LAW ON COMPUTER DATA LEGAL PROCEEDINGS COULD BE BROUGHT IN FRANKFURT SIEMENS GAINED 590 MARKS OR 1 TO 57890 MARKS 35637 THE ELECTRONICS COMPANY'S PROFIT FOR ITS FIRST QUARTER ENDED DEC 31 ROSE 2 TO 406 MILLION MARKS 2499 MILLION ANALYSTS HAD EXPECTED A DROP OF BETWEEN 5 AND 10 BUT SIEMENS WARNED THAT BUSINESS GROWTH WOULD SLOW IN THE YEAR ENDING SEPT 30 AS ORDERS SLOW AND THAT IT WILL HAVE TO REDUCE ITS WORK FORCE FURTHER IN THE LATEST QUARTER THE NUMBER OF ITS EMPLOYEES FELL 3000 TO 410000 THYSSEN ROSE 90 PFENNIGS TO 16620 MARKS THE STEEL AND ENGINEERING COMPANY'S THYSSEN INDUSTRIE INDUSTRIAL GOODS UNIT REPORTED A 50 JUMP IN PRETAX PROFIT TO 460 MILLION MARKS FOR THE YEAR ENDED SEPT 30 ON STRENGTH IN DOMESTIC OPERATIONS 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 9301150156 930115 MARKETING & MEDIA HBO'S NEW PACT WITH PARAMOUNT HELPS GLOBAL PLANS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOME BOX OFFICE INC IN A TRANSACTION THAT HIGHLIGHTS THE GROWING IMPORTANCE OF GLOBAL ENTERTAINMENT MARKETS SIGNED A NEW AGREEMENT VALUED AT 500 MILLION TO CARRY PARAMOUNT PICTURES MOVIES ON PAY TELEVISION THE LICENSING AGREEMENT AN EXTENSION OF A PACT THAT THE PARAMOUNT COMMUNICATIONS INC SUBSIDIARY SOLD TO HBO IN 1987 GRANTS HBO A TIME WARNER INC UNIT EXCLUSIVE PAYTV DISTRIBUTION OF PARAMOUNT MOVIES SCHEDULED FOR RELEASE THROUGH 1997 BUT UNLIKE THE AGREEMENT IT REPLACES THE NEW DEAL GRANTS HBO NOT ONLY DOMESTIC RIGHTS BUT ALSO PAYTV DISTRIBUTION IN A FOREIGN MARKET IN THIS CASE ALL OR PARTS OF ASIA KNOWLEDGEABLE PEOPLE SAID A PARAMOUNT SPOKESMAN SAID ANY NEGOTIATIONS WITH RESPECT TO FOREIGN RIGHTS ARE SEPARATE AND APART FROM THE DOMESTIC DEAL HE ACKNOWLEDGED HOWEVER THAT PARAMOUNT IS CURRENTLY IN TALKS EVALUATING RELATIONSHIPS ON INTERNATIONAL PAYTV RIGHTS THE FOREIGN MOVIE RIGHTS PROVISION REFLECTS HBO'S AGGRESSIVE STRATEGY OF EXPANDING IN OVERSEAS MARKETS MICHAEL FUCHS HBO'S CHAIRMAN AND CHIEF EXECUTIVE SAID HBO IS ALSO SEEKING SUCH RIGHTS IN CURRENT TALKS WITH SONY CORP'S COLUMBIA PICTURES AND TRISTAR PICTURES STUDIOS WHICH ALREADY HAVE AN HBO DEAL AND WITH THE UNIVERSAL STUDIO UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA CORP UNIVERSAL HASN'T HAD A PAYTV DEAL IN RECENT YEARS TWO YEARS AGO HBO COLLECTED PAYTV RIGHTS TO HUNGARY AND ALL OF LATIN AMERICA EXCEPT PORTUGUESESPEAKING BRAZIL IN AN AGREEMENT WITH NEWS CORP'S TWENTIETH CENTURY FOX FILM STUDIO WHEN WE TALK ABOUT ACQUISITIONS OF MOVIES WE TALK ABOUT THE WORLD HE SAID WE ARE NOT JUST AN AMERICAN PAYTELEVISION COMPANY ANYMORE HBO BOASTS ABOUT 23 MILLION CABLE SUBSCRIBERS OR ABOUT TWO THIRDS OF US PAYTV UNITS BUT THAT MARKET HAS BEEN RELATIVELY STAGNANT FOR YEARS AND HBO HAS BEEN SEEKING OTHER GROWTH OPPORTUNITIES STUDIOS DON'T WANT OTHER HBOS AROUND THE WORLD SAYS A HIGHRANKING EXECUTIVE AT ONE STUDIO THEY ARE TAKING OUR MOVIES AND MAKING MONEY OFF IT WE COULD DO IT OURSELVES THIS EXECUTIVE ADDS THE WHOLE GOAL OF HBO IS TO PREEMPT US IN FOREIGN MARKETS AND BUILD A FRANCHISE HBO HAS EYED FOREIGN MARKETS FOR AT LEAST FIVE YEARS ITS BIG BREAK CAME IN 1989 WHEN ITS PARENT TIME INC ACQUIRED WARNER COMMUNICATIONS INC PARENT OF WARNER BROS STUDIO WITH ACCESS TO THE WARNER FILM LIBRARY HBO HAD A CRITICAL MASS OF MOVIES TO PEDDLE ABROAD ALONG WITH HBOPRODUCED PROGRAMMING IN ADDITION TO LATIN AMERICA AND HUNGARY HBO OFFERS A PAYTELEVISION SERVICE IN SINGAPORE AS OF LAST JUNE MR FUCHS DESCRIBED SINGAPORE AS ITS BASE FOR EXPANSION IN THE PACIFIC RIM HBO IS ALSO PART OWNER OF A SERVICE IN SCANDINAVIA AT PRESENT THE FINANCIAL CONTRIBUTION OF THE STARTUP FOREIGN SERVICES IS NEGLIGIBLE MR FUCHS SAID BUT HE ADDED THAT THE COMPANY IS PLEASED SO FAR HE SAID HE EXPECTS THE LATIN AMERICAN SERVICE LAUNCHED IN 1991 TO BREAK EVEN THIS YEAR 9301150155 930115 MESA AIR DECEMBER TRAFFIC FARMINGTON NM MESA AIRLINES INC SAID DECEMBER TRAFFIC MORE THAN TRIPLED TO 758 MILLION REVENUE PASSENGER MILES FROM 23 MILLION IN DECEMBER 1991 THE INCREASE PARTLY REFLECTS THE ACQUISITION OF WESTAIR HOLDING INC LAST JUNE LOAD FACTOR OR THE PERCENTAGE OF SEATS OCCUPIED BY PAYING PASSENGERS ROSE TO 506 FROM 434 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE FOR ALL OF 1992 THE REGIONAL AIRLINE'S TRAFFIC MORE THAN DOUBLED TO 6569 MILLION REVENUE PASSENGER MILES FROM 2283 MILLION IN 1991 LOAD FACTOR ROSE TO 503 FROM 44 9301150154 930115 MARKETING & MEDIA CBS INC MAY FIND IT DIFFICULT TO BUILD A NATIONWIDE AUDIENCE FOR LETTERMAN BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS'S BIGGEST CHALLENGE IN GETTING A NEW DAVID LETTERMAN SHOW OFF THE GROUND ISN'T NBC'S THE TONIGHT SHOW BUT LATENIGHT RERUNS OF THE OLD NBC SITCOM CHEERS CBS INC EXECUTIVES WERE REVELING OVER LURING THE LATENIGHT STAR FROM NBC AT A COST OF ABOUT 14 MILLION ANNUALLY FOR AT LEAST THREE YEARS THE MOVE INSTANTLY MAKES CBS A PLAYER IN A TIME PERIOD IN WHICH IT HAS BEEN THE PERENNIAL ALSORAN BUT CBS MAY FACE A DIFFICULT TIME BUILDING A NATIONAL AUDIENCE FOR ITS NEWESTMULTIMILLIONAIRE STAR OVER HALF OF THE NETWORK'S 200PLUS STATIONS CURRENTLY HAVE CONTRACTS TO AIR NONCBS SHOWS AT 1130 PM MANY OF THEM ACHIEVE FAR BETTER RATINGS WITH THE LIKES OF CHEERS RERUNS THAN A TYPICAL TALK SHOW GETS AND THEY MAKE MORE MONEY AT IT BECAUSE THEY DON'T HAVE TO GIVE UP ANY AD TIME TO CBS AS THEY WILL WITH THE LETTERMAN SHOW INDEED EVEN CBS EXECUTIVES ACKNOWLEDGE THAT PERHAPS 30 TO 40 OF CBS STATIONS IN THE SHOW'S FIRST YEAR ARE UNLIKELY TO BE ON BOARD TO AIR MR LETTERMAN'S ANTICS AT 1130 PM A KEY REASON FOR THE HOST'S DECISION TO DUMP NBC STILL THAT WAS THE FURTHEST THING FROM THE MINDS OF THE CBS BRASS WHO BEAMED AT A TRIUMPHANT CONFERENCE AT NEW YORK HEADQUARTERS CBS BROADCAST GROUP PRESIDENT HOWARD STRINGER CALLED IT A RED LETTERMAN DAY MR LETTERMAN WHO SAID HIS DISAPPOINTMENT THAT NBC DIDN'T GIVE HIM THE TONIGHT SHOW JOB WAS BEHIND HIM THANKED CBS FOR ITS GENEROSITY BUT HE QUIPPED THAT CBS INC CHAIRMAN LAURENCE TISCH HAS GOT A LOT TO SHOOT FOR IF HE IS TO BE AS GOOD A TARGET FOR MR LETTERMAN'S JOKES AS WAS NBC PRESIDENT ROBERT WRIGHT NBC AS EXPECTED PLAYED DOWN ITS LETTERMAN LOSS WHICH WAS MADE DOUBLY DAMAGING BY THE PERCEPTION THAT NETWORK EXECUTIVES WERE DIVIDED AND IN DISARRAY OVER WHAT TO DO WITH THEIR LATENIGHT STAR A RELIEVED TONIGHT SHOW HOST JAY LENO MEANWHILE AT A LOS ANGELES NEWS CONFERENCE SAID WHAT WE'RE CELEBRATING HERE IS THAT I'M NOT BEING FIRED HE SAID HE LOOKS FORWARD TO GOING HEAD TO HEAD WITH MR LETTERMAN AT 1130 PM NBC IS A UNIT OF GENERAL ELECTRIC CO NBC LET MR LETTERMAN LEAVE BECAUSE ITS OWN RESEARCH CLEARLY SHOWED THAT BOTH AFFILIATES AND VIEWERS PREFERRED JAY LENO AS HOST OF THE TONIGHT SHOW IN THE 1130 PM TIME SLOT OF THE COMBINED LENOLETTERMAN AUDIENCE HALF WATCH MR LENO ALONE WHILE A MERE ONE IN 10 VIEWERS TUNE ONLY TO MR LETTERMAN RATINGS DATA SHOW CBS STILL WON THE PUBLIC RELATIONS GAME HOWEVER SAID BETSY FRANK SENIOR VICE PRESIDENT AT AD AGENCY SAATCHI & SAATCHI NOW CBS WHICH COURTED MR LETTERMAN FOR NINE MONTHS WILL HAVE TO WORK HARD TO CONVERT THE COUP INTO MONEY MOST OF ALL THAT WILL REQUIRE CBS TO CONVINCE AFFILIATE STATIONS TO CLEAR THE PROGRAM LIVE AIRING AT 1130 PM WHEN CBS BEAMS IT TO THEM I'M GOING TO FIGHT FOR CLEARANCES SAID CBS BROADCAST GROUP PRESIDENT HOWARD STRINGER IT'S IN THE LONGTERM INTEREST OF THE THE NETWORK AND THE AFFILIATES AND I THINK ALL THOSE WITH A VISION FOR THE FUTURE WILL SEE IT OTHERS WILL SIT ON THEIR HANDS AND SEE IF WE'RE SUCCESSFUL SOME 60 OF CBS AFFILIATES DON'T CARRY CBS'S CURRENT LATENIGHT PROGRAMMING STEAMY DRAMAS DUBBED CRIMETIME AFTER PRIMETIME IN ITS 1130 PM TIME PERIOD HALF OF THOSE STATIONS DON'T CARRY THE CBS LATENIGHT SHOWS AT ALL OF THE 114 CBS STATIONS THAT AIR SYNDICATED FARE AT 1130 PM TWO DOZEN CARRY RERUNS OF NBC'S CHEERS ANOTHER 17 AIR RERUNS OF FOX'S MARRIEDWITH CHILDREN WHILE A DOZEN CARRY THE ARSENIO HALL SHOW BY AIRING OLD CHEERS EPISODES KMVTTV IN TINY TWIN FALLS IDAHO IS ABLE ON AN AVERAGE NIGHT TO DRAW 157 OF THE CITY'S TV HOMES AND AN ASTOUNDING 54 SHARE OF THOSE WATCHING TELEVISION THE TONIGHT SHOW BY CONTRAST GETS JUST A 2 RATING ON THE NBC STATION IN TOWN THE CBS STATION IS IN A DILEMMA OVER WHAT TO DO GIVEN A HEAVY CASH INVESTMENT TO BUY CHEERS THROUGH 1997 AND NO OTHER PLACE TO RUN THE SHOW THE STATION HAS TOLD CBS THAT WE HAVE A PROBLEM HERE SAID KMVT PROGRAM DIRECTOR GEORGE BROWN CONVERSELY KOINTV IN PORTLAND ORE PLANS TO MOVE THE SYNDICATED TALK SHOW RUSH LIMBAUGH WHICH DRAWS A 7 RATING AT 1130 TO MAKE WAY FOR MR LETTERMAN THIS IS GREAT NEWS FOR CBS AFFILIATES SAID MICK SHAFBUCH THE STATION'S VICE PRESIDENT AND GENERAL MANAGER AND THE HEAD OF CBS'S AFFILIATES BOARD BUT HE WORRIES THAT CBS MAY RECLAIM SOME OF THE AD TIME FOR ITSELF RATHER THAN CONTINUING TO USE A FORMULA THAT FAVORS AFFILIATES MR LETTERMAN SAID HIS LAST NBC SHOW WILL BE SLATED FOR JUNE 25 ALTHOUGH IT REMAINS TO BE SEEN WHETHER NBC CAN WILLINGLY WITHSTAND WHAT IS SURE TO BE A BARRAGE OF ONAIR SNIPING FROM THE HOST FOR LAST NIGHT'S SHOW MR LETTERMAN COULDN'T RESIST TAKING ANOTHER SHOT DEVOTING HIS TRADEMARK TOP 10 LIST TO REASONS WHY HE IS LEAVING NBC 9301150152 930115 HALLMARK ELECTRONICS SALES RISE DALLAS HALLMARK ELECTRONICS CORP SAID IT POSTED SALES OF 176 MILLION FOR THE FOURTH QUARTER A 21 INCREASE FROM A YEAR EARLIER DUE TO STRONG DEMAND FOR ITS PRODUCTS THE SEMICONDUCTOR DISTRIBUTOR ALSO SAID ITS SALES FOR THE YEAR GREW 24 TO 695 MILLION A COMPANY RECORD 9301150151 930115 PHILIPPINE AIRLINES OWNERSHIP DEBATE POSES THREAT TO LOAN MANILA THE PHILIPPINES AN OWNERSHIP TUG OF WAR AT RECENTLY PRIVATIZED PHILIPPINE AIRLINES MAY SLOW THE PAYOUT OF A PREVIOUSLY APPROVED LOAN IS CASTING DOUBT ON A PLANNED BOND ISSUE AND MAY THREATEN AN AMBITIOUS PROGRAM TO REVAMP THE CARRIER TOBACCO TYCOON LUCIO TAN'S EMERGENCE THIS WEEK AS A MAJOR SHAREHOLDER CHALLENGING PAL CHAIRMAN ANTONIO COJUANGCO JR HAS SHOCKED SOME OTHER HOLDERS AND THROWN PAL'S CREDITORS AND EMPLOYEES AND GOVERNMENT REGULATORS INTO DISARRAY AGAINST THIS BACKDROP REPRESENTATIVES OF 18 PHILIPPINE BANKS MET YESTERDAY TO PORE OVER THE FINE PRINT ON A PREVIOUSLY AGREED 122 MILLION SYNDICATED LOAN TO PAL THE LOAN WHICH WAS APPROVED IN THE HEADY DAYS LAST SEPTEMBER WHEN THE CARRIER ORDERED 16 BILLION OF JUMBO JETS SUDDENLY LOOKED LESS CERTAIN ALTHOUGH LEAD SYNDICATOR AND PAL SHAREHOLDER BANK OF THE PHILIPPINE ISLANDS SAID THE MEETING WAS ROUTINE OTHER MEMBERS OF THE LENDING SYNDICATE SAID THEY WERE ANXIOUS ABOUT DISBURSING THE SECOND AND FINAL PAYOUT BECAUSE OF GROWING UNCERTAINITY ABOUT PAL'S OWNERSHIP AT LEAST FOUR BANKS IN THE SYNDICATE HAVE NOT RELEASED ANY MONEY AT ALL SAID AN INVESTMENT BANKER FAMILIAR WITH THE SITUATION THEY SMELLED SOMETHING BAD WHEN PAL WAS UNABLE TO GUARANTEE THERE WOULD BE NO CHANGES IN THE OWNERSHIP OR MANAGEMENT HE SAID THE FIRST PAYOUT OF 75 MILLION WAS DOWN PAYMENT FOR SIX AIRBUS INDUSTRIE JETLINERS THE BALANCE DUE TO BE DISBURSED THIS MONTH WOULD BE THE DEPOSIT ON FOUR BOEING CO 747S NELSON BONA BANK OF THE PHILIPPINES VICE PRESIDENT FOR CORPORATE FINANCE SAID THE SYNDICATE IS INTACT EVERYBODY IS STILL ON BOARD HE SAID HE ADDED HOWEVER THAT PAL MIGHT HAVE TO WAIT UNTIL FEBRUARY TO GET THE MONEY INDIVIDUAL BANKS WOULD HAVE TO CONSIDER A LOT OF FACTORS IN DECIDING WHEN TO RELEASE THEIR SHARE HE SAID 9301150150 930115 HEALTH FIRMS' FOURTH QUARTER SEEN AS MIXED GAINS EXPECTED FOR HMOS NURSINGCARE CHAINS HOSPITALS COULD VARY BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEALTHMAINTENANCE ORGANIZATIONS AND NURSINGCARE CHAINS ARE EXPECTED TO REPORT SHARPLY HIGHER FOURTHQUARTER EARNINGS BUT HOSPITAL CHAINS ARE IN THE MIDST OF REPORTING MUCH MORE MIXED RESULTS THE DIVERGING TRENDS REFLECT CHANGING FORTUNES IN THE 838 BILLION HEALTHCARE INDUSTRY ANALYSTS AND INDUSTRY EXECUTIVES SAY IN PARTICULAR PRESSURES FOR COST CONTAINMENT ARE BENEFITING PROVIDERS OF RELATIVELY CHEAP HEALTH CARE SUCH AS HMOS MEANWHILE HOSPITAL CHAINS WHERE PATIENTS' COSTS CAN REACH 1000 A DAY ARE BEING PRESSED TO DISCHARGE PATIENTS FASTER AND TO SLOW DOWN PRICE INCREASES ESPECIALLY IN AREAS SUCH AS PSYCHIATRIC CARE THE SUCCESS OF HMOS IN CURBING MEDICAL COSTS IS HITTING HOSPITALS WITH GREAT FORCE IN PSYCHIATRIC CARE SAYS SALOMON BROTHERS INC ANALYST MARGO VIGNOLA OVERALL SHE SAYS HOSPITALS SHOULD SHOW OK RESULTS FOR THE QUARTER BUT IT WON'T BE A BIG SEASON FOR THEM EARLIER THIS WEEK AMERICAN MEDICAL HOLDINGS INC REPORTED THAT NET INCOME FOR THE QUARTER ENDED NOV 30 LEAPT TO 106 MILLION OR 14 CENTS A SHARE FROM THE YEAREARLIER 155000 OR LESS THAN ONE CENT A SHARE THE DALLASBASED HOSPITAL CHAIN SAID COST CONTROLS AND A LIGHTER DEBT LOAD ACCOUNTED FOR MUCH OF THE IMPROVEMENT TWO OTHER HOSPITAL CHAINS HAVE REPORTED LOWER EARNINGS FOR THEIR FISCAL QUARTERS THAT ENDED IN NOVEMBER THEY ARE NATIONAL MEDICAL ENTERPRISES INC AND HUMANA INC MEANWHILE HOSPITAL ANALYSTS EXPECT EARNINGS FOR THE QUARTER ENDING DEC 31 TO CLIMB ABOUT 25 AT SMALLER CHAINS SUCH AS CONTINENTAL MEDICAL SYSTEMS INC AND TO RISE EVEN MORE BRISKLY FOR COLUMBIA HOSPITAL CORP AND VENCOR INC HEALTHMAINTENANCE ORGANIZATIONS MEANWHILE SHOULD REPORT FOURTH QUARTER EARNINGS GAINS OF ABOUT 25 ON AVERAGE PREDICTS MERRILL LYNCH'S MS OLWELL THE INDUSTRY TRENDS FOR HMOS ARE AS STRONG AS EVER SHE SAYS MOST HMOS HAVE EXPANDED THEIR MEMBERSHIPS WHILE RAISING PRICES ABOUT 10 A YEAR SLIGHTLY FASTER THAN THE INCREASE IN THEIR OWN COSTS ANALYSTS EXPECT US HEALTHCARE INC A BELLWETHER HMO TO REPORT THAT PERSHARE EARNINGS ROSE SOMEWHERE BETWEEN 15 AND 27 DURING THE FOURTH QUARTER OFFICIALS AT US HEALTHCARE DECLINED TO COMMENT ON THE ESTIMATES EARLIER THIS MONTH US HEALTHCARE SAID THAT ITS OVERALL MEMBERSHIP INCREASED 13 IN 1992 TO 14 MILLION OTHER HMOS ANALYSTS EXPECT TO SHOW EARNINGS GAINS OF 25 OR MORE FOR THE FOURTH QUARTER INCLUDE UNITED HEALTHCARE INC SIERRA HEALTH SERVICES INC AND RAMSAYHMO INC IN ADDITION MERRILL LYNCH'S MS OLWELL EXPECTS HMO AMERICA INC TO REPORT THAT ITS EARNINGS MORE THAN DOUBLED IN THE LATEST QUARTER NURSINGHOME CHAINS ARE ALSO EXPECTED TO REPORT STRONG FOURTH QUARTER EARNINGS GAINS THEY'RE STILL SHOWING IMPROVEMENTS IN THEIR PROFIT MARGINS BECAUSE OF LOW INFLATION SAYS JOYCE ALBERSSCHONBERG AN ANALYST AT FIRST BOSTON CORP THEIR LABOR COSTS ARE UNDER CONTROL AND THEY'RE SHOWING STEADY IMPROVEMENT IN VOLUME ONE NURSINGHOME CONCERN THAT IS EXPECTED TO REPORT SHARPLY IMPROVED EARNINGS IS HEALTH CARE & RETIREMENT CORP ITS CHIEF FINANCIAL OFFICER GEOFFREY MEYERS SAYS THE COMPANY'S OPERATING BUSINESSES ARE RUNNING AT ABOUT A 20 EARNINGS GROWTH RATE IN ADDITION HE SAYS THE COMPANY'S NET INCOME IS BENEFITING FROM LOWER DEBT COSTS BECAUSE OF THE GENERAL DROP IN INTEREST RATES MR MEYERS ISN'T MAKING AN EARNINGS ESTIMATE FOR THE FOURTH QUARTER BUT SAYS HE'S COMFORTABLE WITH ANALYSTS' ASSESSMENTS MERRILL LYNCH'S MS OLWELL IS LOOKING FOR HCR TO REPORT A 40 JUMP IN PERSHARE EARNINGS FOR THE QUARTER WE'RE AMONG THE LOWESTCOST PROVIDERS IN HEALTH CARE WITH PERDAY BED CHARGES OF ABOUT 100 A PATIENT MR MEYERS SAYS MANY OF US HAVE BEEN TAKING ADVANTAGE OF THE TENDENCY ON THE HOSPITAL SIDE TO UNBUNDLE SERVICES IN PARTICULAR HE SAYS HEALTH CARE & RETIREMENT AND OTHER NURSING HOMES ARE PROVIDING MORE SUBACUTE CARE FOR PATIENTS RECOVERING FROM SURGERY WHO DON'T NEED THE FULL RANGE OF HOSPITAL SERVICES MERRILL'S MS OLWELL EXPECTS OTHER LONGTERM CARE COMPANIES SUCH AS BEVERLY ENTERPRISES INC AND LIVING CENTERS OF AMERICA INC TO SHOW EARNINGS GAINS OF AT LEAST 38 FOR THE DECEMBER QUARTER NURSING HOMES AREN'T JUST FOR THE ELDERLY SHE OBSERVES THEY'RE BUILDING UP A SPECIALTY BUSINESS IN SUBACUTE CARE 9301150149 930115 BRITISH AGENCY CLEARS FROST LONDON BRITAIN'S DEPARTMENT OF TRADE AND INDUSTRY CLEARED NATIONAL WESTMINSTER BANK PLC DEPUTY CHAIRMAN TOM FROST OF ANY WRONGDOING IN THE 1987 BLUE ARROW STOCK AFFAIR WE HAVE INVESTIGATED A NUMBER OF ALLEGATIONS OF DISHONESTY AND IMPROPRIETY WHICH HAVE BEEN LEVELED AT SENIOR EXECUTIVES OF NATIONAL WESTMINSTER BANK PLC WE ARE SATISFIED THAT THERE IS NO SUBSTANCE TO ANY OF THESE ALLEGATIONS THE DEPARTMENT SAID IN A REPORT THE CONTROVERSY CENTERED ON A STOCK ISSUE BY THE BLUE ARROW EMPLOYMENT AGENCY IN 1987 THE ISSUE HANDLED BY THE BANK'S COUNTY NATWEST BROKERAGE ARM RESULTED IN CHARGES THAT THE STOCK MARKET MAY HAVE BEEN MISLED OVER ITS SUCCESS AS A RESULT OF INCOMPLETE DISCLOSURES MR FROST WAS NATWEST'S CHIEF EXECUTIVE AT THE TIME 9301150148 930115 SCANA TO TAKE 4THPERIOD CHARGE COLUMBIA SC SCANA CORP SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF FOUR CENTS A SHARE RELATED TO A REFUND TO RETAIL ELECTRIC CUSTOMERS OF ITS SOUTH CAROLINA ELECTRIC & GAS CO UNIT THE UTILITY HOLDING COMPANY SAID THE REFUND AMOUNTING TO ABOUT 176 MILLION WILL APPEAR IN CUSTOMER BILLS NEXT MONTH IN ACCORDANCE WITH AN ORDER FROM THE PUBLIC SERVICE COMMISSION OF SOUTH CAROLINA THE TOTAL IMPACT OF THE REFUND WHICH INCLUDES INTEREST IS 27 CENTS A SHARE IN 1992 THE COMPANY ESTABLISHED AN AFTERTAX RESERVE OF 23 CENTS A SHARE AGAINST THIRDQUARTER EARNINGS TO REFLECT THE ESTIMATED COST OF THE REFUND 9301150147 930115 UK PROBES CHARGE BY VIRGIN ATLANTIC IN BRITISH AIR CASE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL BRITISH AIRWAYS PLC'S WOES OVER ITS DIRTY TRICKS CAMPAIGN AGAINST VIRGIN ATLANTIC AIRWAYS DIDN'T END WITH MONDAY'S PUBLIC APOLOGY AND 610000 944000 SETTLEMENT THE UK DATA PROTECTION REGISTRAR HAS ASKED VIRGIN FOR INFORMATION ABOUT BRITISH AIRWAYS' ACTIONS INVOLVING THE ALLEGED USE OF INFORMATION STORED IN VIRGIN'S COMPUTER RESERVATION SYSTEMS IF THE REGISTRAR MR ERIC HOWE FINDS THAT BRITISH AIRWAYS' ACTIONS VIOLATED UK LAWS ON COMPUTER DATA HE COULD START LEGAL PROCEEDINGS IN ADDITION BRITISH AIRWAYS HAS BEEN THE SUBJECT OF SHARP CRITICISM FROM THE OPPOSITION LABOR PARTY AND THE UK MEDIA AMONG THOSE TAKING AIM AT THE GIANT UK AIRLINE WAS THE DAILY TELEGRAPH EVEN THOUGH BRITISH AIRWAYS CHAIRMAN LORD KING SITS ON THE NEWSPAPER'S BOARD A SPOKESMAN FOR THE LABOR PARTY IN A LETTER TO TRANSPORT MINISTER JOHN MACGREGOR CALLED FOR THE RESIGNATIONS OF LORD KING AND DEPUTY CHAIRMAN SIR COLIN MARSHALL BUT MR HOWE'S ACTIONS ARE THE MORE SERIOUS CONCERN FOR BRITISH AIRWAYS IN THE WAKE OF ITS ADMISSION AS PART OF A LIBEL SETTLEMENT THAT VIRGIN HAD REASONABLE GROUNDS TO COMPLAIN OF A DIRTY TRICKS CAMPAIGN BY ITS LARGER COMPETITOR MR HOWE WROTE VERY BRIEFLY TO VIRGIN ATLANTIC AND SAID HE HAD SEEN THE MEDIA REPORTS SAID ROSEMARY JAY LEGAL ADVISER TO THE REGISTRAR FROM THOSE REPORTS IT APPEARED THERE WERE DATA PROTECTION ISSUES ARISING FROM BRITISH AIR'S ACTIONS AMONG VIRGIN'S COMPLAINTS WAS AN ALLEGATION THAT BRITISH AIRWAYS USED ITS COMPUTER RESERVATION SYSTEM TO FIND THE PHONE NUMBERS OF VIRGIN TICKET HOLDERS AND CONTACTED THEM IN AN EFFORT TO PURSUADE THEM TO SWITCH AIRLINES VIRGIN OFFICIALS SAID THE CALLERS OFTEN KNEW THE ENTIRE TRAVEL ITINERARY OF THE TICKET HOLDERS ON SOME OCCASIONS VIRGIN SAID THE CALLERS EVEN INCORRECTLY TOLD THE TRAVELERS THAT THEIR VIRGIN FLIGHTS HAD BEEN CANCELED MS JAY SAID THAT MR HOWE'S CONCERN IS THAT SUCH ACTIONS MAY VIOLATE THE UK'S DATA PROTECTION ACT OF 1984 UNDER THE ACT WHICH WAS SET UP TO PROTECT INDIVIDUALS COMPANIES MUST FOLLOW CERTAIN STANDARDS OF BEHAVIOR IN USING THEIR COMPUTER INFORMATION AND MUST OBTAIN DATA FAIRLY MS JAY NOTED HOWEVER THAT THE REGISTRAR'S REQUEST FOR INFORMATION MAY NOT LEAD TO ANY LEGAL ACTIONS IF VIRGIN DECIDES NOT TO RESPOND OR IF MR HOWE FINDS INSUFFICIENT REASON TO PURSUE THE CASE A SPOKESMAN FOR VIRGIN SAID MR HOWE'S REQUEST CAME AS A SURPRISE TO MR BRANSON AND HIS AIRLINE AND WAS NOT PROMPTED BY VIRGIN WE DIDN'T EVEN KNOW THERE WAS A DATA PROTECTION REGISTRAR THE SPOKESMAN SAID THE VIRGIN SPOKESMAN SAID THE AIRLINE HAS TWO OPTIONS IT COULD LAUNCH A COPYRIGHT SUIT AGAINST BRITISH AIRWAYS IN THE UK FOR USING INFORMATION STORED IN VIRGIN'S COMPUTERS OR IT COULD FILE AN ANTITRUST CASE IN THE US A BRITISH AIRWAYS SPOKESMAN SAID YESTERDAY THAT THE AIRLINE HAD NOT BEEN CONTACTED BY MR HOWE AND HAD NO COMMENT ON THE ISSUE BEYOND WHAT WAS SAID IN COURT ON MONDAY 9301150146 930115 TANDY'S DEBT RATING MAY BE DOWNGRADED BY MOODY'S AND S&P A WALL STREET JOURNAL NEWS ROUNDUP THE NATION'S TWO LEADING CREDIT REPORTING AGENCIES SAY THEY ARE CONSIDERING A POSSIBLE DOWNGRADE OF TANDY CORP'S DEBT FOLLOWING A RESTRUCTURING AT THE ELECTRONICS RETAILER THIS WEEK THE MOVES BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP AFFECT ABOUT 22 BILLION IN TANDY DEBT BOTH AGENCIES SAID THEY PLACED TANDY UNDER REVIEW FOLLOWING AN ANNOUNCEMENT SUNDAY BY THE FORT WORTH TEXAS COMPANY THAT IT PLANS TO CLOSE 100 UNPROFITABLE NAMEBRAND ELECTRONICS STORES EXPAND ITS SUPERSTORE RETAIL OPERATIONS AND SPIN OFF ITS MANUFACTURING BUSINESS STANDARD & POOR'S WHICH PLACED THE COMPANY ON CREDITWATCH WITH NEGATIVE IMPLICATIONS SAID IT IS CONCERNED ABOUT THE LOSS OF THE MANUFACTURING BUSINESS AT TANDY AND BY THE COMPANY'S LACK OF EXPERIENCE IN RUNNING EXTREMELY LOWPRICED STORES MOST PEOPLE WHO OPEN A NEW FORMAT GENERALLY DO WELL IN THE BEGINNING PEOPLE LIKE TO SHOP AT NEW STORES SAID JERRY HIRSCHBERG DIRECTOR OF CORPORATE FINANCE AT STANDARD & POOR'S THE REAL TEST FOR THEM IS NOT JUST WHAT HAPPENS THE FIRST YEAR A TANDY SPOKESMAN IN RESPONSE ASSERTED THAT THE COMPANY ALREADY IS THE NATION'S LARGEST RETAILER OF ELECTRONICS GEAR WITH ITS GIANT RADIO SHACK FLAGSHIP AND HAS OPERATED NAMEBRAND CONSUMER ELECTRONICS BUSINESSES SINCE 1985 WE HAVE HAD MORE THAN A LITTLE EXPERIENCE IN THE FIELD THE SPOKESMAN SAID BOTH AGENCIES SAID THEY ARE STUDYING THE COMPANY'S RESTRUCTURING PLAN AND ARE EXPECTED TO MAKE A DECISION ON TANDY'S DEBT RATINGS WITHIN 90 DAYS 9301150145 930115 AMAX GOLD ACQUISITION OF STAKE GOLDEN COLO AMAX GOLD INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF A 50 STAKE IN THE REFUGIO GOLD MINING PROJECT IN CENTRAL CHILE FROM A PRIVATE CHILEAN COMPANY FOR 32 MILLION RESTRICTED SHARES OF COMMON STOCK VALUED AT ABOUT 25 MILLION THE REFUGIO PROJECT CONTAINS ABOUT 33 MILLION OUNCES OF PROVEN AND PROBABLE GOLD RESERVES THE GOLD MINING COMPANY SAID THE PROPERTY WILL BE HELD BY COMPANIA MINERA MARICUNGA WHICH IS 50 OWNED BY AMAX GOLD AND 50 BY BEMA GOLD CORP A MINING COMPANY BASED IN VANCOUVER BRITISH COLUMBIA AMAX GOLD SAID IT HAS COMPLETED A FEASIBILITY STUDY ON THE PROJECT AND IS ATTEMPTING TO SECURE FINANCING 9301150144 930115 AMERICAN TRAVELLERS EXPECTS DECREASE IN 4THPERIOD NET MEDICARE CLAIMS CITED BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL BENSALEM PA AMERICAN TRAVELLERS CORP HURT BY INCREASED CLAIMS IN ITS MEDICARE BOOK OF BUSINESS EXPECTS FOURTHQUARTER NET INCOME FELL FROM A YEAR AGO JOHN A POWELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE PROVIDER OF LONGTERM CARE INSURANCE TO SENIOR CITIZENS SAID IN AN INTERVIEW THAT HE'S COMFORTABLE WITH ANALYSTS' ESTIMATES THAT THE COMPANY EARNED ABOUT 21 CENTS A SHARE FOR THE QUARTER OR A TOTAL OF ABOUT 21 MILLION THAT COMPARES WITH YEARAGO NET OF 31 MILLION OR 30 CENTS A SHARE WHICH INCLUDED A CHARGE OF 1 MILLION OR SIX CENTS A SHARE TO SETTLE LITIGATION INVOLVING TWO POLICY CLAIMS MR POWELL DOESN'T EXPECT FOURTHQUARTER REVENUE WAS AS HIGH AS THE YEARAGO 38 MILLION BUT HE DECLINED TO ELABORATE FOR 1992 THE EXECUTIVE IS ALSO COMFORTABLE WITH ESTIMATES THAT AMERICAN TRAVELLERS EARNED ABOUT 1 A SHARE OR 102 MILLION DOWN FROM THE 109 A SHARE OR 113 MILLION OF A YEAR AGO EARNINGS IN THE YEARAGO SECOND AND THIRD QUARTERS WERE RESTATED TO CORRECT ERRORS IN RECORDING SOME EXPENSES AND ACQUISITIONS IN THE YEAR TWO COMPLAINTS FILED AGAINST THE COMPANY FOLLOWING THE RESTATEMENT ARE SEEKING CLASS ACTION STATUS MR POWELL EXPECTS REVENUE FOR 1992 TOTALED 140 MILLION TO 145 MILLION INCREASING FROM 125 MILLION A YEAR AGO THE INCREASE CAME FROM INCREASED SALES FOR LONGTERM CARE POLICIES AND FOUR ACQUISITIONS MADE IN 1991 LOOKING AHEAD MR POWELL ALSO IS COMFORTABLE WITH WALL STREET ESTIMATES THAT THE INSURER WILL EARN ABOUT 110 A SHARE OR ABOUT 112 MILLION IN 1993 MR POWELL AND THE ESTATE OF HIS FATHER TOGETHER HOLD ABOUT A 20 STAKE IN THE COMPANY MR POWELL SAID HE EXPECTS THAT THE COMPANY'S MEDICARE BUSINESS WHICH IS A SUPPLEMENTAL FORM OF HEALTHCARE INSURANCE WILL CONTINUE TO DISSIPATE AS A PROPORTION OF ITS TOTAL BUSINESS IT CURRENTLY REPRESENTS ABOUT 30 OR ABOUT 40 MILLION OF AMERICAN TRAVELLERS' BUSINESS WE'RE NOT SELLING ANY NEW MEDICARE POLICIES AS A RESULT OF A CONSCIOUS COMMITMENT TO GET OUT OF THAT MARKETPLACE MR POWELL SAID CHANGES IN THE LAW HAVE INCREASED CLAIMS IN THE MEDICARE BUSINESS AS A RESULT THE BUSINESS ON WHICH AMERICAN TRAVELLERS HAD BEEN MAKING MARGINS OF 3 TO 6 IS NOW LOSING MONEY BECAUSE THE COMPANY RAISED PREMIUMS TO TRY TO REGAIN THE MARGINS IT HAS EXPERIENCED A DOUBLING IN THE PERCENTAGE OF PEOPLE NOT RENEWING THE POLICY TO 40 FROM THE PREVIOUSLY EXPECTED NONRENEWAL RATE OF 20 ONLY THE LARGEST INSURERS CAN MAKE MONEY IN THE MEDICARE MARKETPLACE MR POWELL SAID INSTEAD AMERICAN TRAVELLERS IS FOCUSING ON EXPANDING THE BASE FOR ITS PRIMARY PRODUCTS NURSINGHOME INSURANCE AND HOME HEALTH CARE INSURANCE ABOUT 100 MILLION OF 1992 REVENUE CAME FROM THOSE LINES THE COMPANY RECENTLY INTRODUCED A MORE AFFORDABLE PRODUCT TO COVER A BROADER BASE OF PEOPLE THE CONCEPT IS YOU DON'T HAVE TO HAVE A CADILLAC MR POWELL SAID THE NEW PRODUCT IS ABOUT 40 LESS EXPENSIVE THAN A STANDARD BASIC POLICY FOR A 72YEAROLD THE AVERAGE LONGTERM CARE PREMIUM AT THE COMPANY IS 1200 A YEAR WHICH PROVIDES 1500 A MONTH OF BENEFITS FOR THREE YEARS 9301150143 930115 PEUGEOT SETS SIGHTS ON REGAINING SHARE IN FRENCH CAR MARKET SPECIAL TO THE WALL STREET JOURNAL PARIS PSA PEUGEOT CITROEN SA IS SETTING ITS SIGHTS ON RECAPTURING SOME OF THE FRENCH MARKET SHARE IT LOST LAST YEAR WITH THE 306 A NEW MIDRANGE MODEL THAT WILL GO ON SALE IN FRANCE NEXT MONTH THE 306 WILL REPLACE PEUGEOT'S 309 MODEL AND EVENTUALLY ITS BESTSELLING 205 WHICH WAS INTRODUCED 10 YEARS AGO THE 306 IS MORE THAN NECESSARY COMMENTED AN INDUSTRY ANALYST NOTING THAT THE 309 LAUNCHED IN 1985 WAS NEVER A BIG COMMERCIAL SUCCESS WHILE THE 205 IS APPROACHING THE END OF ITS USEFUL LIFE THE MARKET SEGMENT THAT PEUGEOT IS AIMING AT REPRESENTS 30 OF EUROPEAN CAR SALES BUT COMPETITION IS FIERCE RIVALS RENAULT VOLKSWAGEN AG FIAT AG AND GENERAL MOTORS CORP ARE ALL STRONGLY REPRESENTED BUT AUTOMOBILE ANALYSTS SAY THE 306 SHOULD HAVE AN EASY RIDE IN ITS FIRST YEAR AS NONE OF THE OTHER MANUFACTURERS PLAN TO BRING OUT NEW MODELS ALTHOUGH FORD WILL BE GIVING A FACELIFT TO ITS ESCORT ONE UNWELCOME SIDEEFFECT OF THE 306'S LAUNCH COULD BE THAT IT WILL EAT INTO SALES OF CITROEN'S ZX MODEL WHICH WAS LAUNCHED ONLY A YEAR AGO AUTOMOBILES PEUGEOT ONE OF THE GROUP'S TWO CAR MANUFACTURING ARMS HAS BEEN PRODUCING THE NEW MODEL SINCE SEPTEMBER AT ITS POISSY PLANT OUTSIDE PARIS IN PREPARATION FOR THE CAR'S EUROPEAN LAUNCH IT'S PLANNED THAT PRODUCTION CAPACITY AT THE THREE PRODUCTION UNITS WHERE THE 306 WILL BE BUILT WILL RISE RAPIDLY TO WELL OVER 2500 CARS A DAY FROM 500 A DAY NOW AUTOMOBILES PEUGEOT HAS INVESTED A TOTAL OF 56 BILLION FRANCS 1 BILLION IN THE 306 PROJECT INCLUDING 18 BILLION FRANCS ON RESEARCH AND 800 MILLION FRANCS ON TOOLING THE PLANT AT POISSY AS WELL AS PLANTS IN SPAIN AND THE UNITED KINGDOM AUTOMOBILES PEUGEOT'S SHARE OF THE FRENCH MARKET FELL BY TWO FULL PERCENTAGE POINTS IN 1992 TO 193 WHILE THAT OF ITS SISTER COMPANY AUTOMOBILES CITROEN DECLINED TO 111 FROM 118 IN CONTRAST STATEOWNED RENAULT BOOSTED ITS SHARE OF THE DOMESTIC MARKET TO 295 IN 1992 FROM 268 A YEAR BEFORE PEUGEOT CITROEN FARED BETTER IN THE REST OF EUROPE HOWEVER THE GROUP'S OVERALL EUROPEAN MARKET SHARE INCREASED TO 122 FROM 121 IN 1991 WHILE THAT OF RENAULT CLIMBED TO 106 FROM 10 9301150141 930115 INTERNATIONAL MORE PRIVATIZATION OF BIG COMPANIES SLATED IN RUSSIA BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA IS PUTTING INTO HIGH GEAR ITS PRIVATIZATION OF MEDIUM AND LARGE ENTERPRISES TAKING A MAJOR STEP IN A PROCESS THAT IS A CRUCIAL PART OF ITS ECONOMIC REFORMS THE GOVERNMENT SET A DATE FOR THE FIRST SELLOFF OF 20 ENTERPRISES IN EXCHANGE FOR PRIVATIZATION VOUCHERS VOUCHERHOLDERS CAN BID IN WRITING FOR SHARES IN ANY OF THE COMPANIES ALL IN THE VOLGOGRAD DISTRICT DURING THREE WEEKS STARTING FEB 8 FOUR OTHER REGIONS WILL ANNOUNCE SIMILAR OFFERINGS AS SOON AS JAN 25 IT'S THE PRINCIPLE OF FAST PRIVATIZATION SAYS ANTHONY DORAN MANAGER OF THE EUROPE DEPARTMENT OF THE INTERNATIONAL FINANCE CORP A PART OF THE WORLD BANK INVOLVED IN PRIVATESECTOR FINANCING THAT IS DESIGNING AND LEADING THE VOUCHERAUCTION PROGRAM IN THE FIRST FIVE DISTRICTS THE START OF THIS NEW REFORM PHASE COMES AS LIBERAL GOVERNMENT MINISTERS FIGHT TO ASSURE THAT OTHER REFORMS REMAIN ON TRACK A RECENT PRICECONTROL DECREE BY PRIME MINISTER VIKTOR CHERNOMYRDIN HAS REFORMERS WORRIED THE DECREE WHICH LIMITS PROFITS ON BASIC FOODS AND RAW MATERIALS WAS VAGUELY WORDED AND IT WASN'T CLEAR AT FIRST WHAT IMPACT IT WOULD HAVE NOW DEPUTY PRIME MINISTER BORIS FYODOROV THE GOVERNMENT'S NEW ECONOMIC STRATEGIST HAS CRITICIZED THE DECREE ON PRICES ECONOMICS MINISTER ANDREI NECHAYEV A KEY MEMBER OF FORMER ACTING PREMIER YEGOR GAIDAR'S TEAM SAYS HE WAS SHOCKED TO DISCOVER HOW MANY PRICES WERE TO BE CONTROLLED AND IS WORKING TO REDUCE THE NUMBER FIRST DEPUTY PRIME MINISTER VLADIMIR SHUMEIKO TOLD RUSSIAN REPORTERS THAT THE DECREE WON'T WORK BECAUSE THERE IS NO SYSTEM TO CONTROL PROFITABILITY AT THE ENTERPRISE LEVEL CONTROL OVER GOODS PRODUCED BY MONOPOLY INDUSTRIES ALREADY EXISTS AND SHOULD BE MAINTAINED HE SAID AS PARLIAMENT RESUMED THIS WEEK AFTER A HOLIDAY BREAK THE DEBATE OVER ECONOMIC REFORM TOOK OFF CENTRAL BANK CHAIRMAN VIKTOR GERASHCHENKO WHOM LIBERALS BLAME FOR SPURRING INFLATION BY GIVING INDUSTRY TOO MANY NEW CREDITS HAS CALLED FOR EXPANDING PRICE CONTROLS MR GERASHCHENKO ALSO ATTACKED THE PRIVATIZATION PROGRAM IT WOULD BE A GROSS MISTAKE TO CONVERT STATERUN ENTERPRISES TO JOINTSTOCK COMPANIES IN A SITUATION WHERE PRODUCERS ARE MONOPOLISTS IN A SITUATION WHERE IT IS IMPOSSIBLE TO ENCOURAGE COMPETITION BECAUSE OF THE SORRY STATE OF THE BALANCE OF PAYMENTS HE SAID RUSSIA HELD SEVERAL PILOT AUCTIONS OF MEDIUM AND LARGE ENTERPRISES LAST MONTH THE NEW STAGE INVOLVES PRIVATIZING MANY COMPANIES AT ONCE THE GOVERNMENT CHOSE THIS METHOD BECAUSE ANALYZING THE FINANCIAL VIABILITY OF EACH INDIVIDUAL COMPANY WASN'T USEFUL SAYS MR DORAN OF THE INTERNATIONAL FINANCE CORP YOU ACCEPT IT THAT IN THE SEA OF TURMOIL IN RUSSIA THERE IS NO SUCH THING AS RELIABLE INFORMATION ON RUSSIAN COMPANIES THEN WHAT YOU'RE LOOKING FOR IS SIMPLY TO MAKE THE PUBLIC AWARE OF WHAT'S FOR SALE 9301150140 930115 THURSDAY'S MARKETS OTC STOCKS SET RECORD ON RALLY IN TECHNOLOGY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL OVERTHECOUNTER STOCKS SOARED TO ANOTHER RECORD AS THE RALLY IN TECHNOLOGY ISSUES CONTINUED TO SIZZLE BUT THE DOW JONES INDUSTRIAL AVERAGE ROSE ONLY MODERATELY BOND PRICES GAINED AND THE DOLLAR WAS LITTLE CHANGED THE NASDAQ COMPOSITE INDEX SURGED 892 POINTS OR 13 TO 69570 THE INDEX HAS SOARED 204 SINCE THE RALLY BEGAN IN EARLY OCTOBER AND 35 SINCE THE START OF THE YEAR YESTERDAY THE DOW JONES INDUSTRIALS GAINED 432 POINTS TO 326788 IN VERY HEAVY TRADING AND STANDARD & POOR'S 500STOCK INDEX ROSE 291 TO 43594 TECHNOLOGY STOCKS CLIMBED ACROSS THE BOARD INTEL WHICH JUMPED 8 WEDNESDAY AFTER REPORTING BETTERTHANEXPECTED FOURTHQUARTER RESULTS ADDED 2 5/8 OR 24 TO 112 3/4 THE STOCK HAS RISEN 14 THIS WEEK ALONE MOTOROLA SURGED 10 7/8 OR 97 TO 123 1/4 AFTER REPORTING A BETTERTHANEXPECTED FOURTHQUARTER PROFIT AND DIGITAL EQUIPMENT SURPRISED ANALYSTS BY REPORTING A SMALLERTHANEXPECTED FISCAL SECONDQUARTER LOSS IT JUMPED 7 3/8 OR 21 TO 42 1/4 THOUGH ANALYSTS CHEERED THE ADVANCE IN TECHNOLOGY STOCKS THEY SAID IT NEEDS TO FILTER INTO OTHER SECTORS TO SUSTAIN THE MARKET'S STRENGTH THE TECHNOLOGY STOCKS ARE DUE FOR SOME PROFITTAKING IN THE NEXT TWO TO THREE DAYS SAID RALPH BLOCH MARKET STRATEGIST AT RAYMOND JAMES & ASSOCIATES IN ST PETERSBURG FLA BUT IF THESE HUGE WINNERS COME UNDER PROFITTAKING AND THERE ARE NO OTHER STOCKS THAT LOOK ATTRACTIVE THAT WOULD BE A SIGNAL OF SOME WEAKNESS WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK MARKET INDEX GAINED 026 TO 9137 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 280 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1185 ISSUES ROSE AND 689 FELL BOND PRICES INCREASED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY HALF A POINT OR ALMOST 5 FOR EACH 1000 FACE AMOUNT TO YIELD 739 THE DOLLAR WAS LITTLE CHANGED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16245 MARKS AND 12585 YEN COMPARED WITH 16234 MARKS AND 12565 YEN WEDNESDAY 9301150139 930115 GPA CREDITORS TO SEEK EXTENSION OF WAIVERS ON LOAN COVENANTS LONDON THE 24 LEADING CREDITOR BANKS FOR GPA GROUP PLC AGREED TO SEEK AN EXTENSION BEYOND JAN 31 OF WAIVERS ON TERMS OF ITS BANKING COVENANTS PEOPLE FAMILIAR WITH THE TALKS SAID AT A MEETING IN LONDON ON WEDNESDAY THE LEADING BANKS AGREED TO THE EXTENSION AND ARE NOW SEEKING APPROVAL FROM THE REST OF THE APPROXIMATELY 100 BANKS THAT HAVE LENT MONEY TO THE AIRCRAFT LEASING CONCERN THE SOURCES SAID THE EXTENSION IS NECESSARY THEY SAID BECAUSE TALKS AIMED AT RESTRUCTURING GPA'S CREDIT LINES AREN'T EXPECTED TO BE COMPLETED BEFORE THEN GPA HAS 27 BILLION IN LOAN AGREEMENTS GPA REITERATED THAT IT EXPECTS THE CONTINUING EFFORT AT REVERSING ITS SINKING FINANCIAL FORTUNES TO BE COMPLETED BEFORE THE END OF MARCH THOSE EFFORTS INVOLVE SIMULTANEOUS TALKS WITH BANKS AIRCRAFT MANUFACTURERS AND GPA SHAREHOLDERS PEOPLE FAMILIAR WITH THE BANK TALKS SAID THAT OFFICIALS OF THE BANKS AND OF THE COMPANY VIEW THE PROPOSED EXTENSION AS NORMAL SINCE THERE WAS NEVER ANY SET DATE FOR THE NEGOTIATIONS WITH THE BANKS TO BE COMPLETED IN ADDITION THE SOURCES SAID THE TALKS WITH MANUFACTURERS AIMED AT TRIMMING GPA'S ORDER BOOK ARE MAKING PROGRESS GPA IS REPORTEDLY CLOSE TO CLINCHING AGREEMENTS WITH BOEING CO THE EUROPEAN CONSORTIUM AIRBUS INDUSTRIE AND FOKKER NV BUT TALKS WITH MCDONNELL DOUGLAS CORP REMAIN A STUMBLING BLOCK THE SOURCES SAID TALKS WITH THE SHAREHOLDERS AREN'T EXPECTED TO PROGRESS UNTIL DEALS WITH THE BANKS AND MANUFACTURERS ARE IN PLACE 9301150138 930115 STEEL MAKER TO POST BIG OPERATING LOSS FOR FOURTH PERIOD BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WHEELINGPITTSBURGH STEEL CORP EXPECTS TO REPORT ANOTHER HEAVY OPERATING LOSS FOR THE FOURTH QUARTER BECAUSE OF LOW STEEL PRICES AND EQUIPMENT OUTAGES JAMES L WAREHAM CHIEF EXECUTIVE SAID HOWEVER THE STEELMAKER THE SOLE OPERATING UNIT OF WHEELINGPITTSBURGH CORP SEES IMPROVEMENT IN THE 1993 FIRST QUARTER BECAUSE OF FIRMING PRICES AND SHIPMENTS AND MR WAREHAM SAID HE HOPES THE COMPANY WILL BREAK EVEN OR POST A PROFIT FOR THE YEAR THE COMPANY WILL TAKE A FOURTHQUARTER SEVERANCE CHARGE TO CUT 156 SALARIED POSITIONS OR 15 OF THE SALARIED WORK FORCE FOURTHQUARTER RESULTS WILL ALSO REFLECT COSTS OF AN UNSCHEDULED TWOWEEK OUTAGE OF A BLAST FURNACE AND SCHEDULED OUTAGES OF A HOTSTRIP MILL EVEN WITHOUT THESE ITEMS THE SIZE OF WHICH HASN'T YET BEEN DETERMINED MR WAREHAM SAID THE FOURTHQUARTER LOSS WOULD BE SIMILAR TO THE COMPANY'S SECONDAND THIRDQUARTER DEFICITS OF 96 MILLION OR 53 CENTS A SHARE AND 73 MILLION OR 40 CENTS A SHARE RESPECTIVELY IN THE 1991 FOURTH QUARTER WHEELINGPITTSBURGH HAD PROFIT OF 21 MILLION OR 12 CENTS A SHARE MR WAREHAM ATTRIBUTED THE DECLINE TO LOWER PRICES AND A HALT IN EXPORTS MR WAREHAM WHO SUCCEEDED ROBIN CHENERY AS THE STEELMAKER'S CHIEF EXECUTIVE IN SEPTEMBER SAID THE COMPANY WILL BE CONSISTENTLY REDUCING ITS WORK FORCE OF 6000 THROUGHOUT 1993 AND BEYOND WHEELINGPITTSBURGH EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION AT THE BEGINNING OF 1991 THE EXECUTIVE SAID HE HAS SEEN MINOR SIGNS OF PRICE IMPROVEMENT BUT HE SAID A PRICE INCREASE PLANNED BY BIG STEELMAKERS WON'T BE FULLY IMPLEMENTED IN THE FIRST QUARTER BECAUSE OF AN EXCESS OF STEEL SHIPPED TO THE US BEFORE THE FEDERAL GOVERNMENT MADE ITS FIRST RULING ON THE INDUSTRY'S TRADE CASES IN NOVEMBER MR WAREHAM SAID HE IS CONFIDENT OF HIGHER PRICES IN 1993 WE'RE QUITE SURE THE BLEEDING HAS STOPPED HE SAID MR WAREHAM EXPECTS US DOMESTIC SHIPMENTS TO INCREASE TO 84 MILLION TONS IN 1993 FROM 82 MILLION TONS AND TO 88 MILLION TONS IF THE GOVERNMENT CONTINUES TO AFFIRM THE INDUSTRY'S CHARGES OF SUBSIDIZATION AND DUMPING AGAINST FOREIGN PRODUCERS OF FLATROLLED STEEL WITH 1992 SHIPMENTS OF 21 MILLION TONS WHEELINGPITTSBURGH THE US'S 11TH LARGEST STEELMAKER IS OPERATING NEAR ITS CAPACITY EVEN THOUGH EXPORTS PRACTICALLY DRIED UP IN 1992 AFTER CONSTITUTING 10 OF 1991 SHIPMENTS THE CONSTRUCTION MARKET WHEELINGPITTSBURGH'S LARGEST MARKET HAS BEEN SLOWLY REBOUNDING MR WAREHAM SAID HE SAID HE HAS ALSO SEEN SMALL GROWTH IN THE AUTOMOTIVE BUSINESS WHICH ACCOUNTS FOR ABOUT 10 OF SALES DEMAND FOR TINMILL PRODUCTS HOWEVER HAS BEEN PRETTY SLOW HE SAID AND DEMAND FROM STEEL DISTRIBUTORS HAS BEEN MOSTLY FLAT 9301150137 930115 GERMANY'S SIEMENS SAYS NET ROSE 2 IN ITS 1ST QUARTER BY DAGMAR AALUND SPECIAL TO THE WALL STREET JOURNAL MUNICH GERMAN ELECTRONICS GIANT SIEMENS AG REPORTED A BETTERTHANEXPECTED 2 INCREASE IN GROUP NET INCOME FOR ITS FIRST QUARTER ANALYSTS SAID THE RESULTS WERE EVIDENCE OF SIEMENS'S DIVERSIFIED PRODUCT PALETTE THE COMPANY'S FORECAST THAT 1993 RESULTS WILL BE APPROXIMATELY THE SAME AS LAST YEAR ALSO WAS POSITIVE IN LIGHT OF GERMANY'S OVERALL GLOOMY ECONOMIC OUTLOOK ANALYSTS SAID THEY SAID PREVIOUS SIEMENS PREDICTIONS HAVE PROVEN RELIABLE ANALYSTS WEREN'T RUFFLED BY THE COMPANY'S ANNOUNCEMENT THAT IT WOULD CUT ITS WORK FORCE BY MORE THAN 10000 EMPLOYEES IN THE NEXT NINE MONTHS AND DROP BELOW 400000 WORKERS A LARGE PORTION OF THE REDUCTION IS TO COME IN COMPUTERRELATED AREAS THE COMPANY ALSO ELIMINATED 3000 JOBS IN ITS FIRST QUARTER WHICH ENDED DEC 31 SIEMENS SAID EARNINGS ROSE 2 FROM A YEAR EARLIER TO 406 MILLION MARKS 2499 MILLION IN THE QUARTER SALES ROSE 4 TO 169 BILLION MARKS ORDERS HOWEVER FELL 8 TO 186 BILLION MARKS SOME ANALYSTS HAD FORECAST A 5 TO 10 DROP IN FIRSTQUARTER PROFIT CITING GERMANY'S ECONOMIC OUTLOOK AND POOR RESULTS AT SIEMENS'S US COMPETITOR INTERNATIONAL BUSINESS MACHINES CORP LOWER INDUSTRYWIDE DEMAND IS HURTING SIEMENS'S STRUGGLING ELECTRONICS UNITS PARTICULARLY IN SEMICONDUCTORS SIEMENS CHAIRMAN HEINRICH VON PIERER SAID THE COMPANY SAID ITS SIEMENSNIXDORF INFORMATIONSSYSTEME AG COMPUTER DIVISION HAD A LOSS OF 513 MILLION MARKS IN THE LATEST QUARTER 9301150135 930115 WHO'S NEWS SHEARSON'S GALLATIN GETS SENIOR POST AT HOLDING FIRM BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHEARSON LEHMAN BROTHERS INC NAMED RONALD L GALLATIN ITS NEWPRODUCTS SPECIALIST TO A SENIOR POST AT THE FIRM'S HOLDING COMPANY DIRECTING CORPORATE STRATEGY AND PRODUCT DEVELOPMENT THE APPOINTMENT OF MR GALLATIN 47 YEARS OLD FURTHER BEEFS UP SHEARSON LEHMAN BROTHERS HOLDINGS INC EARLIER THIS WEEK THE AMERICAN EXPRESS CO UNIT NAMED RICHARD FULD AND J TOMILSON HILL TO ESSENTIALLY TAKE OVER THE DAYTODAY DUTIES OF THE HOLDING COMPANY FROM SHEARSON CHAIRMAN HOWARD L CLARK JR MR GALLATIN WILL REPORT TO MESSRS CLARK FULD AND HILL WHO MAKE UP A NEW OFFICE OF THE CHAIRMAN MR GALLATIN'S APPOINTMENT ALSO SUGGESTS SUPPORT IN THE SENIOR RANKS FOR HIS RECENTLY CONCOCTED PLAN TO ALLOW AMERICAN EXPRESS TO SLASH ITS SHEARSON OWNERSHIP TO BELOW 50 SOME SHEARSON OFFICIALS SAID MR GALLATIN IS THE ARCHITECT OF THE PLAN WHICH COULD BE PRESENTED TO THE AMERICAN EXPRESS BOARD AS EARLY AS JAN 25 WHEN THE DIRECTORS ARE SCHEDULED TO MEET PEOPLE FAMILIAR WITH SHEARSON SAID MR GALLATIN IS BASICALLY ACTING AS THE THINK TANK FOR TOM HILL AND DICK FULD SAID A SHEARSON EXECUTIVE HIS APPOINTMENT COULD BODE WELL FOR HIS SHEARSON SALE PROPOSAL THE EXECUTIVE ADDED MR GALLATIN DECLINED TO COMMENT A SHEARSON SPOKESMAN REFUSED TO DISCUSS ANY ELEMENT OF SPECULATION REGARDING A POSSIBLE SPINOFF OR DIVESTITURE IN HIS NEW POST MR GALLATIN WILL BECOME A SENIOR EXECUTIVE VICE PRESIDENT OF THE HOLDING COMPANY MR GALLATIN WILL WORK CLOSELY WITH MEMBERS OF THE OFFICE OF THE CHAIRMAN IN IDENTIFYING STRATEGIC OPTIONS AS THE FIRM MOVES TO INTEGRATE FULLY ITS CORE BUSINESSES SHEARSON SAID MR GALLATIN HAS RECEIVED DECIDEDLY MIXED REVIEWS SINCE HE BEGAN HEADING SHEARSON'S NEWPRODUCT EFFORT IN 1982 HE IS PERHAPS BEST KNOWN FOR HIS BIGGEST FLOP UNBUNDLED STOCK UNITS THIS PRODUCT WHICH SPLIT A COMPANY'S STOCK INTO THREE SEPARATELY TRADED PARTS WAS SCUTTLED IN 1989 AMID TEPID RESPONSE BY INVESTORS MR GALLATIN ALSO HAS CREATED AMONG OTHER PRODUCTS MONEYMARKET PREFERRED STOCK AND HE HELPED DEVELOP SOCALLED TARGETED STOCK USED BY USX CORP WHICH OFFERED A CHOICE TO INVEST AMONG THE COMPANY'S BUSINESS SECTORS AS PART OF MR GALLATIN'S NEW AMERICAN EXPRESS PROPOSAL A LARGE CHUNK OF SHEARSON WOULD BE SOLD TO THE PUBLIC IN A STOCK OFFERING AND AMERICAN EXPRESS WOULD RETAIN MINORITY OWNERSHIP THROUGH A RIGHTS OFFERING OR SALE OF ADDITIONAL STOCK TO EXISTING SHAREHOLDERS PEOPLE FAMILIAR WITH THE PLAN SAID 9301150134 930115 BEVERAGE FIRMS TO POST GROWTH IN NET INCOME DESPITE 4THPERIOD GAINS INDUSTRY SALES VOLUME WAS SLUGGISH IN 1992 BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL THE MAJOR BEVERAGE COMPANIES AFTER WEATHERING A FEW MONTHS OF SLUGGISH SALES ARE EXPECTED TO REPORT MOSTLY SOLID FOURTHQUARTER EARNINGS BUT 1992 WILL GO DOWN AS A DISAPPOINTMENT FOR THE INDUSTRY BECAUSE VOLUME GROWTH REMAINED SLIGHT COCACOLA CO IS EXPECTED TO REPORT A 19 INCREASE IN FOURTHQUARTER EARNINGS ANALYSTS SAID PEPSICO INC'S PROFIT JUMPED BETWEEN 15 AND 17 WHILE ANHEUSERBUSCH COS' EARNINGS ROSE BETWEEN 9 AND 15 THE ESTIMATES DON'T INCLUDE MANDATED CHARGES OR EXPENSES THE COMPANIES ARE TAKING TO COVER DEFERRED TAXES AND RETIREE BENEFITS COCACOLA ENTERPRISES INC A MAJOR COKE BOTTLER CONTINUES TO FARE POORLY AND ANALYSTS EXPECT THE COMPANY TO REPORT A LOSS OR SMALL PROFIT IN THE FOURTH QUARTER VOLUME GROWTH INDUSTRYWIDE ROSE SLIGHTLY IN THE FOURTH QUARTER DUE TO INCREASED CUSTOMER TRAFFIC IN STORES AND RESTAURANTS BUT ANALYSTS ESTIMATE ANNUAL VOLUME INCREASED ONLY 15 TO 2 IN THE 47 BILLION US SOFTDRINK MARKET DUE TO THE WEAK ECONOMY AND A LACKLUSTER THIRD QUARTER AS THEY CONTINUED TO FEEL THE RECESSION'S PINCH MORE CONSUMERS TRADED DOWN FROM NATIONAL BRANDS TO PRIVATELABEL BEVERAGES THROUGHOUT THE YEAR AN UNSEASONABLY WET AND COOL SUMMER IN THE THIRD QUARTER ALSO TEMPERED DEMAND ANALYSTS SAID WHETHER YOU'RE TALKING BEER OR SOFT DRINKS IT WASN'T A GOOD YEAR SAID ROY D BURRY AN INDUSTRY ANALYST AT KIDDER PEABODY & CO COCACOLA IN ATLANTA IS EXPECTED TO EARN ABOUT 31 CENTS A SHARE UP FROM 26 CENTS IN THE YEAREARLIER QUARTER THE COMPANY WHICH MAKES ABOUT 80 OF ITS PROFIT OVERSEAS YESTERDAY SAID ITS DECEMBER VOLUME AS MEASURED BY CASE SALES JUMPED AN ESTIMATED 11 INTERNATIONALLY THE GAIN SPARKED BY HOLIDAY MARKETING PROMOTIONS SIGNIFICANTLY OUTPACED THE COMPANY'S PREVIOUS ESTIMATE OF 5 GROWTH OVERSEAS FOR THE DECEMBER PERIOD COKE ALSO SAID IT EXPECTS TO REPORT THAT ITS FOURTHQUARTER CASE VOLUME ROSE 5 INTERNATIONALLY AND A STRONG 4 IN THE US FOR THE FULL YEAR COKE SAID IT EXPECTS TO REPORT THAT CASE VOLUME ADVANCED 4 INTERNATIONALLY AND 2 IN THE US IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE COKE'S STOCK ROSE 1875 TO 4325 A SHARE EXCLUDING ONETIME CHARGES EARNINGS AT PEPSI IN PURCHASE NY INCREASED TO BETWEEN 47 CENTS AND 49 CENTS A SHARE FROM 41 CENTS A YEAR EARLIER ANALYSTS ESTIMATED VOLUME ROSE 2 TO 3 DOMESTICALLY AND 5 TO 7 OVERSEAS AMONG ITS SNACKFOOD AND RESTAURANT DIVISIONS PEPSI IS EXPECTED TO SEE MIXED RESULTS PROFIT AT FRITOLAY WHICH CONTINUES TO BENEFIT FROM A 1991 RESTRUCTURING THAT LOWERED OPERATING COSTS INCREASED BETWEEN 10 AND 15 MEANWHILE PROFITS WILL JUMP AN ESTIMATED 15 TO 20 AT TACO BELL AND ABOUT 30 AT KENTUCKY FRIED CHICKEN WHILE PIZZA HUT IS EXPECTED TO SHOW A MORE MODERATE GAIN THE SHOWING AT KFC ANALYSTS NOTED WAS HELPED BY AN EASY COMPARISON WITH A WEAK FOURTH QUARTER IN 1991 FOR 1993 ANALYSTS PREDICT THAT PROFITS AT TACO BELL AND KFC WILL MODERATE WHILE RESULTS AT PIZZA HUT SHOULD IMPROVE EASIER COMPARISONS WITH THE PREVIOUS YEAR AS WELL AS DECLINING COSTS OF CHEESE WILL BENEFIT PIZZA HUT SAID DAVID GOLDMAN AT OPPENHEIMER & CO MR BURRY OF KIDDER PEABODY WHO HAS ESTIMATED A 13 TOTAL INCREASE IN RESTAURANT PROFIT FOR 1992 BELIEVES THAT FIGURE WILL FALL TO 10 BY THE END OF 1993 THERE WILL BE SOMETHING OF A SLOWDOWN BECAUSE 13 IS AN AWFULLY RAPID RATE HE SAID THE THREE CHAINS HAVE INCREASED MARKET SHARE WHICH IS PRETTY TOUGH TO KEEP DOING AGAINST CHAINS LIKE MCDONALD'S COCACOLA ENTERPRISES IN ATLANTA CONTINUES TO STRUGGLE ANALYSTS SAID DESPITE THE PRESENCE OF A NEW MANAGEMENT TEAM AND OPERATING STRUCTURE MARTIN ROMM EXPECTS THE BOTTLER TO POST A LOSS FOR 1992 OF ABOUT SIX CENTS A SHARE COMPARED WITH A PRO FORMA LOSS OF 21 CENTS A YEAR EARLIER EVEN SO THAT'S NOT AN IMPROVEMENT HE SAID ALL YEAR LONG THEY WERE EXPECTED TO MAKE MONEY AND THE FACT THAT THEY'RE LOSING LESS THAN LAST YEAR ISN'T INDICATIVE OF A WHOLE LOT OF PROGRESS FOR ANHEUSERBUSCH IN ST LOUIS EARNINGS EXCLUDING ONETIME CHARGES CLIMBED TO BETWEEN 60 CENTS AND 63 CENTS A SHARE FROM 55 CENTS A YEAR EARLIER ANALYSTS SAID VOLUME IN 1992 GREW BETWEEN 1 AND 2 SAID MR GOLDMAN AT OPPENHEIMER PERCAPITA AND OVERALL CONSUMPTION ISN'T GROWING HE SAID AND THE SUMMER OF 1992 WAS A VERY COLD ONE 9301150133 930115 RESEARCHERS SAY DRUG SHOWS PROMISE IN TREATING DEGENERATIVE BRAIN DISEASE BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS RESEARCHERS SAID THEY DEVELOPED A DRUG THAT IN RAT TESTS SHOWED PROMISE IN PRESERVING THE KIND OF NERVE CELLS ESPECIALLY DAMAGED BY ALZHEIMER'S DISEASE THE DRUG IS BASED ON NERVE GROWTH FACTOR OR NGF A NATURALLY OCCURRING PROTEIN DISCOVERED IN THE 1950S RESEARCHERS PREVIOUSLY SHOWED THAT INJECTING IT INTO AGED RATS' BRAINS IMPROVES THE RODENTS' PERFORMANCE ON MAZE TESTS OF LEARNING AND MEMORY NGF IS THOUGHT TO SELECTIVELY BOOST THE ACTIVITY OF NEURONS THAT PRODUCE ACETYLCHOLINE A CHEMICAL MESSENGER THAT PLAYS A PIVOTAL ROLE IN THE BRAIN'S MEMORYFORMING AREAS SUCH NEURONS TEND TO SHRIVEL FIRST IN CASES OF ALZHEIMER'S DISEASE BUT NGF'S PROMISE FOR TREATING ALZHEIMER'S DISEASE AND OTHER BRAIN DISORDERS HAS BEEN LIMITED BY THE FACT THAT WHEN INJECTED IT DOESN'T CROSS THE BLOODBRAIN BARRIER TIGHTLY INTERLOCKED CELLS WITHIN BLOOD VESSELS THAT BLOCK MOST MOLECULES FROM GETTING TO THE BRAIN'S SENSITIVE NEURONS THE LATEST STUDY LED BY RESEARCHERS AT ALKERMES INC SUGGESTS THAT A KIND OF MOLECULAR TROJAN HORSE CAN SOLVE THE PROBLEM IT'S A GENERAL TECHNIQUE THAT SHOWS WE'RE ON TRACK FOR GETTING VARIOUS PROTEINS INTO THE BRAIN FOR TREATING DEGENERATIVE BRAIN DISEASES INCLUDING PARKINSON'S DISEASE SAID RICHARD POPS PRESIDENT AND CHIEF EXECUTIVE OF ALKERMES THE SCIENTISTS ATTACHED NGF TO A MOLECULE TAILORED TO MIMIC TRANSFERRIN A PROTEIN THE BODY USES TO FERRY IRON MOLECULES ACROSS THE BLOODBRAIN BARRIER NEURONS NEED IRON FOR VARIOUS METABOLIC PROCESSES HENCE CELLS OF THE BLOODBRAIN BARRIER ARE STUDDED WITH RECEPTOR MOLECULES THAT GRAB TRANSFERRIN OUT OF THE BLOOD AND PUMP IT INTO THE BRAIN TO TEST WHETHER SIGNIFICANT AMOUNTS OF NGF CAN BE PUMPED IN THE SAME WAY THE RESEARCHERS TRANSPLANTED BRAIN TISSUES FROM FETAL RATS INTO THE EYES OF ADULT RATS SUCH TRANSPLANTS DEVELOP AN INSULATING LAYER LIKE THE BLOODBRAIN BARRIER THE RESEARCHERS THEN INJECTED SOME OF THE RODENTS WITH THE NGF COMPOUND AND MONITORED THE TRANSPLANTS BY PERIODICALLY LOOKING INTO THE RATS' EYES AFTER A FEW WEEKS THEY FOUND THAT 35 TIMES MORE TRANSPLANTED ACETYLCHOLINEPRODUCING NEURONS HAD SURVIVED IN DRUGTREATED RATS THAN IN AN UNTREATED CONTROL GROUP THE RESULTS SUGGEST WE CAN GET CONCENTRATIONS OF NGF NEEDED TO PROMOTE SURVIVAL OF NEURONS INTO THE BRAIN AT VERY REASONABLE DOSES OF THE DRUG SAID MR POPS HE ADDED THAT ALKERMES HOPES TO BEGIN CLINICAL TRIALS WITH THE DRUG WITHIN TWO YEARS RICHARD WURTMAN A MASSACHUSETTS INSTITUTE OF TECHNOLOGY RESEARCHER STUDYING ALZHEIMER'S DISEASE SAID THE STUDY REPRESENTS A GOOD FIRST STEP TOWARD A POTENTIAL PALLIATIVE FOR THE DISEASE HE CAUTIONED HOWEVER THAT THE ALKERMES TEAM NOW MUST SHOW THE DRUG CAN STIMULATE REGROWTH OF DAMAGED ACETYLCHOLINEPRODUCING NEURONS IN THE BRAIN CONCERNS ABOUT POSSIBLE SIDE EFFECTS ALSO MUST BE RESOLVED STEPHEN PEROUTKA HEAD OF NEUROSCIENCE RESEARCH AT GENENTECH INC SOUTH SAN FRANCISCO CALIF SAID NGF HAS HAD TOLERABLE SIDE EFFECTS WHEN INJECTED INTO HUMANS IN CLINICAL TESTS HIS COMPANY IS CONDUCTING GENENTECH WHICH HOLDS A PATENT ON GENETICALLY ENGINEERED NGF IS TESTING THE DRUG AS A TREATMENT FOR NERVE DEGENERATION OUTSIDE THE BRAIN CAUSED BY DIABETES AND CANCER CHEMOTHERAPY 9301150132 930115 CHRISTMAS SALES OF BASIC APPAREL BOOSTED RESULTS ANALYSTS SAY MOST SUPPLIERS WILL POST PROFIT GAINS FOR FOURTH QUARTER BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL A HEAVY TURNOUT OF SHOPPERS FROM THANKSGIVING UNTIL CHRISTMAS SENT RETAILERS SCRAMBLING TO REORDER MERCHANDISE ESPECIALLY FROM SUPPLIERS OF JEANS AND INEXPENSIVE KNITWEAR AS A RESULT WALL STREET ANALYSTS EXPECT MANY APPAREL MAKERS IN THE COMING WEEKS TO REPORT HIGHER FOURTHQUARTER EARNINGS FROM A YEAR AGO DESPITE THE EXPECTED STRONG FOURTHQUARTER SHOWING FOR THE APPAREL AND TEXTILE SECTOR ANALYSTS CAUTION THAT CONSUMER SPENDING WHILE IMPROVED IS STILL NOT BACK ON TRACK IN PARTICULAR SUPPLIERS OF FASHION APPAREL CONTINUE TO SEE THEIR PROFIT MARGINS ERODE AS RETAILERS WERE FORCED TO PROMOTE FASHION GOODS AGGRESSIVELY IN THE QUARTER THE PROJECTED FOURTHQUARTER EARNINGS GAINS LOOK GOOD AGAINST EARNINGS COMPARISONS LAST YEAR THAT WERE SO BAD OBSERVED DEBORAH BRONSTON AN ANALYST AT PRUDENTIAL SECURITIES INC SHE PREDICTS EARNINGS INCREASES FOR ALL BUT THREE OF THE 16 APPAREL COMPANIES SHE FOLLOWS SHE AND OTHER INDUSTRY OBSERVERS BELIEVE THAT HEALTHY CHRISTMAS SALES LEFT RETAILERS WITHOUT INVENTORIES TO CLEAR OUT WHICH SHOULD BODE WELL FOR THE FIRST QUARTER THE BUOYANCY THAT WE HAVE SEEN AT RETAIL MIGHT IMPACT ON SPRING ORDERS AND BOOST FIRSTQUARTER EARNINGS AS A RESULT AS BUYERS ARE MORE COMFORTABLE WITH THE BUSINESS CLIMATE THAN THEY WERE A YEAR AGO MS BRONSTON SAID FEEDING THE HIGH DEMAND FOR JEANS AND SWEATS WERE COMPANIES LIKE VF CORP AND FRUIT OF THE LOOM INC WHICH ANALYSTS EXPECT WILL POST HEALTHY FOURTHQUARTER EARNINGS GAINS FROM A YEAR AGO FOR ANOTHER MAKER OF FLEECEWEAR RUSSELL CORP HIGH MARKETING COSTS WILL DEPRESS ITS FOURTHQUARTER NET INCOME WHICH IS EXPECTED TO BE FLAT COMPARED WITH A YEAR EARLIER ANALYSTS ESTIMATED BUT MAKERS OF MID TO UPPERPRICED FASHION APPAREL WERE VICTIMS OF LOWER CONSUMER DEMAND AND HEAVY RETAIL MARKDOWNS BRENDA GALL AN ANALYST AT MERRILL LYNCH & CO PREDICTED FLAT TO SLIGHTLY LOWER FOURTHQUARTER EARNINGS FOR LIZ CLAIBORNE INC AND LOWER EARNINGS FOR LESLIE FAY CO WHICH IN SPITE OF ITS EARLIER WHOLESALE PRICE CUTS IN THE YEAR SUFFERED HEAVY MARKDOWNS AT RETAIL IN THE FOURTH QUARTER KELLWOOD CORP WHOSE FISCAL QUARTER ENDS IN JANUARY IS ABSORBING SOME RECENT ACQUISITIONS AND IS EXPECTED TO POST A QUARTERLY EARNINGS DECLINE FROM A YEAR AGO BUT SOME FASHION COMPANIES SAW BRISK SALES OF THEIR MERCHANDISE WITHOUT EXCESSIVE MARKDOWNS AND WILL POST HIGHER EARNINGS ANALYSTS EXPECT FOURTHQUARTER EARNINGS INCREASES FOR JONES APPAREL GROUP INC BERNARD CHAUS INC AND OXFORD INDUSTRIES AND IN ITS BEST FOURTH QUARTER IN TWO YEARS HARTMARX CORP THE TAILORED CLOTHING GIANT WHICH RECENTLY SOLD OFF ITS RETAIL STORES IS EXPECTED TO REPORT A FOURTHQUARTER PROFIT INSTEAD OF A LOSS IF 1992 WAS THE YEAR OF STEADY SALES OF BASIC APPAREL ANALYSTS ARE PREDICTING THAT 1993 WILL BE A START OF AN UPTURN IN FASHION APPAREL AS RETAIL INVENTORIES ARE CLEANED OUT AND WAITING TO BE FILLED AND CONSUMERS ARE READY TO BUY SOMETHING NEW UNLESS YOU WERE A QUICKRESPONSE PLAYER LIKE A COMMODITY PRODUCER OF JEANS YOU DIDN'T GET THE FULL BENEFIT OF RISING RETAIL SALES IN THE FOURTH QUARTER OF 1992 SAID MERRILL LYNCH'S MS GALL BUT I BELIEVE WE ARE ENTERING A NEW FASHION CYCLE WHERE PEOPLE ARE IN THE MOOD FOR NEWNESS LIKE THE NEW LONGER SKIRT LENGTHS AND PLATFORM SHOES IF CONSUMER CONFIDENCE REMAINS HEALTHY THIS WILL BE AN IMPROVING YEAR FOR FASHION COMPANIES 9301150131 930115 INTERNATIONAL IRAQI TV PORTRAYS RAID WITH BLOOD SWEAT NO TEARS BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BAGHDAD IRAQ IRAQI TELEVISION NEWS SHOWED A SMALL CHILD WITH HALF HIS FACE BLOODIED AND BANDAGED WOUNDS IT SAID RESULTED FROM THE USLED AIR STRIKE WEDNESDAY AS PRESIDENT SADDAM HUSSEIN VOWED TO RETALIATE BY WAGING MUSLIM HOLY WAR AGAINST THE WESTERN INFIDELS US DEFENSE SECRETARY DICK CHENEY DISMISSED THE CLAIMS OF CIVILIAN CASUALTIES AS GIBBERISH PENTAGON OFFICIALS DID SAY THAT ONE UNINTENDED TARGET WAS HIT BY US BOMBS DURING THE RAID WITH THE BOMBING OVER IN 30 MINUTES AND CONFINED TO THE SOCALLED NOFLY ZONE IN SOUTHERN IRAQ THE MOOD IN THIS BELEAGUERED CAPITAL IN THE CENTER OF THE COUNTRY WAS ONE OF TREMENDOUS IF TEMPORARY RELIEF PEOPLE STILL SAT IN THREEHOUR QUEUES FOR GASOLINE YESTERDAY AS NO ONE WANTED TO BE CAUGHT WITH AN EMPTY TANK SHOULD A CONFLAGRATION ERUPT BUT FEARS OF A WIDER WAR EASED CONSIDERABLY THEY'RE TESTING EACH OTHER I HOPE THAT'S IT SAID AN IRAQI SELLING ORANGES IN THE CAPITAL THOUGH MANY IRAQIS GAVE UP BELIEVING THE OFFICIAL NEWS MEDIA LONG AGO RELYING INSTEAD ON RADIO BROADCASTS FROM OTHER COUNTRIES THE IRAQI MEDIA STRUCK A CHORD WITH ITS COVERAGE OF WEDNESDAY NIGHT'S BOMBING REGARDLESS OF WHAT INDIVIDUAL IRAQIS MAY FEEL ABOUT SADDAM HUSSEIN THE TELEVISION SCENES OF MORE INJURY AND RUIN INFLICTED BY WESTERN WEAPONS IN THE NAME OF THE UNITED NATIONS MADE SOME IRAQIS WONDER IF THEIR COUNTRY HADN'T BECOME SOME SORT OF GRIM TESTING GROUND FOR HUMAN ENDURANCE IT'S A DISMAL BUT REAL CONCERN IN A COUNTRY WHERE HUNDREDFOLD INFLATION IN TWO YEARS NOW MEANS ONCEPROSPEROUS UNEMPLOYED PETROLEUM ENGINEERS CAN AFFORD JUST BREAD AND RICE FOR DINNER AT THEIR FAVORITE CHICKEN RESTAURANT WE CAN'T EVEN AFFORD WHITE BREAD ANY MORE SAID ONE SUCH MAN ROLLING THE COARSE RICE IN FLAT BROWN BREAD AS STIFF AS CARDBOARD SADDAM HUSSEIN IS PLAYING IRAQI SELFPITY FOR ALL IT'S WORTH WITH A FLOURISH OF PROPAGANDA THE DISPUTE WITH THE UN OVER THE NOFLY ZONE IN SOUTHERN IRAQ CREATED TO PROTECT IRAQ'S MAJORITY SHIITE MUSLIM POPULATION FROM IRAQI GUNS HAS BEEN TURNED INTO A MATTER OF NATIONAL PRIDE IRAQI TV REPORTED MASS DEMONSTRATIONS AROUND THE COUNTRY TO PROTEST THE RAIDS AND SUPPORT SADDAM HUSSEIN TARIQ AZIZ IRAQ'S DEPUTY PRIME MINISTER LAUNCHED A SCATHING ATTACK ON THE WESTERN COALITION ACCUSING THE US IN PARTICULAR OF MOUNTING THE RAID TO ADVANCE IMPERIALISM MR AZIZ REITERATED THAT IRAQ DOESN'T RECOGNIZE THE ALLIED NOFLY ZONES IN SOUTHERN AND NORTHERN IRAQ AND HE TOO VOWED IRAQ WOULD RETALIATE IF GEORGE BUSH THINKS THAT IRAQ WILL RETREAT FROM ITS JUST STAND IN DEFENDING ITS SOVEREIGNTY AND TERRITORIAL INTEGRITY AND IF HE THINKS THAT THE IRAQIS ARE AFRAID OF HIS JET FIGHTERS HE WILL BE MISTAKEN HE SAID 9301150130 930115 FINANCING BUSINESS NATHAN'S FAMOUS INC NATHAN'S FAMOUS INC WESTBURY NY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 15 MILLION SHARES IN AN INITIAL OFFERING AT AN ESTIMATED PRICE OF 8 TO 10 A SHARE THE HOT DOG FASTFOOD CHAIN SAID PROCEEDS WOULD GO TOWARD OPENING MORE RESTAURANTS AND PAYING DOWN ABOUT 6 MILLION IN SENIOR DEBT SLATED FOR EARLY MARCH THE OFFERING WILL BE MANAGED BY LADENBURG THALMANN & CO 9301150129 930115 POLITICS & POLICY CLINTON NAMES WILHELM AS DEMOCRATIC CHAIRMAN IN EFFORT TO USE PARTY TO ADVANCE HIS PRESIDENCY BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MAN WHO PUT BILL CLINTON ON THE BUS NOW IS IN CHARGE OF KEEPING DEMOCRATS ON THE BANDWAGON DAVID WILHELM A 36YEAROLD CROSS BETWEEN A POLICY WONK AND A POLITICAL OPERATIVE YESTERDAY WAS NAMED THE NEW CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE THOUGH HE ATTRACTED LITTLE OF THE ATTENTION LAVISHED ON MORE CELEBRATED POLITICAL STRATEGISTS MR WILHELM OVERSAW DAILY OPERATIONS OF THE SUCCESSFUL CLINTON CAMPAIGN ALONG THE WAY HE HAPPENED TO SECURE HIS PLACE IN POLITICAL HISTORY BY SUGGESTING IT MIGHT BE A NICE IDEA TO PUT MR CLINTON ON A BUS RIGHT AFTER HIS NOMINATION AND SEND HIM AROUND TO SMALLTOWN AMERICA INTRODUCING HIMSELF NOW THAT PRESIDENTELECT CLINTON HAS PUT HIM IN CHARGE OF THE DEMOCRATIC PARTY APPARATUS THE CAMPAIGN WILL JUST ROLL ON FOR MR WILHELM HE INTENDS TO USE THE PARTY TO REPLICATE WHAT THE CAMPAIGN DID EMPLOY MODERN COMMUNICATIONS TECHNOLOGIES TO KNIT TOGETHER A NATIONAL NETWORK OF SUPPORTERS WHO WILL SELL BILL CLINTON AND HIS POLICIES TO THE US THE KEY TO BUILDING A DEMOCRATIC MAJORITY FOR THE FUTURE IS FOR BILL CLINTON TO BE A SUCCESSFUL PRESIDENT MR WILHELM SAID IN AN INTERVIEW THAT MEANS THAT MR WILHELM WHO SPENT MUCH OF THE 1980S AS A POLICY ANALYST CRITIQUING REAGANOMICS WILL TRY TO MAKE THE COMMITTEE A PRINCIPAL VEHICLE FOR GENERATING PUBLIC SUPPORT FOR CLINTONOMICS AND CLINTON SOCIAL POLICIES MR WILHELM FIGURES THE CAMPAIGN GOT A GOOD START TOWARD THAT END BY GATHERING AND KEEPING ON FILE THE NAMES OF ROUGHLY A MILLION PEOPLE WHO VOLUNTEERED TO WORK FOR MR CLINTON'S CANDIDACY NOW THE GOAL IS TO USE COMPUTER AND FAX COMMUNICATIONS MASS MAILINGS AND TELEVISION OUTLETS TO MOBILIZE THAT NETWORK AND EXPAND IT IN ADDITION TO PASSING CLINTONINITIATED LEGISLATION THE CLINTON CAMP WANTS TO FULLY CONVERT REPUBLICANS WHO WANDERED AWAY FROM PRESIDENT BUSH LAST YEAR AND TO WIN OVER THE MILLIONS OF AMERICANS WHO SUPPORTED ROSS PEROT I THINK WE NEED TO HAVE A VISION OF THE DEMOCRATIC PARTY THAT BEGINS WITH THOSE MILLION PEOPLE ON HIS VOLUNTEER LIST HE SAYS WE TURN THAT MILLION INTO FIVE MILLION IT BECOMES TRULY A PARTY OF THE PEOPLE MR CLINTON HIMSELF STRESSED THE NEWWAVE APPROACH TO RUNNING A PARTY YESTERDAY IN SELECTING MR WILHELM FOR THE NATIONAL COMMITTEE POST DECLARING OUR PARTY WILL BOTH KNOW HOW TO WIN CAMPAIGNS AND BE A CENTER FOR NEW TECHNOLOGIES THAT GIVE AVERAGE PEOPLE A REAL STAKE AND A MEANINGFUL VOICE IN THE POLITICAL PROCESS HIS YOUTH AND BACKGROUND MAKE MR WILHELM NICKNAMED WILBUR DURING THE CAMPAIGN BECAUSE OF HIS SMALLTOWN MIDWESTERN BACKGROUND AN UNCONVENTIONAL PARTY CHAIRMAN AS A TAXPOLICY EXPERT WHO WORKED IN THE 1980S FOR THE LABORBACKED CITIZENS FOR TAX JUSTICE HE STANDS IN PARTICULARLY STARK CONTRAST TO RON BROWN THE HIGHPAID LAWYER AND LOBBYIST WHO IS LEAVING AS COMMITTEE CHAIRMAN TO BECOME COMMERCE SECRETARY THAT BACKGROUND ALSO MEANS MR WILHELM FACES SOME SPECIAL PITFALLS IN RUNNING THE PARTY RAISING MONEY REMAINS A CENTRAL TASK FOR A PARTY CHAIRMAN AND MR WILHELM'S YOUTH AND INEXPERIENCE IN BIGMONEY CIRCLES WILL RAISE SOME EYEBROWS NO DEMOCRAT HAS HAD TO THINK ABOUT APPLYING THE PARTY TO THE TASK OF PUSHING WHITE HOUSE POLICY FOR 12 YEARS BECAUSE HE IS TIED CLOSELY TO MR CLINTON AND THE TASK OF ADVANCING THE CLINTON PROGRAM MR WILHELM WILL BE OPEN TO CHARGES THAT HE IS FOCUSING THE PARTY APPARATUS TOO NARROWLY ON THE INTERESTS OF THE WHITE HOUSE RATHER THAN THE NEEDS OF OTHER DEMOCRATS HIS STRENGTH IS PROBABLY HIS POLITICAL SKILL AND HIS CLOSENESS TO THE PRESIDENT SAYS THOMAS MANN DIRECTOR OF GOVERNMENT STUDIES AT THE BROOKINGS INSTITUTION THE ISSUE THAT ALWAYS COMES UP IS WILL ALL THE INTEREST OF THE NATIONAL PARTY BE SUBMERGED IN THE POLITICAL AGENDA OF THE PRESIDENT BUT WHAT MR WILHELM SENSES AS DO MANY OF HIS DEMOCRATIC COLLEAGUES IS THAT DEMOCRATS WILL RISE OR FALL IN THE NEXT FEW YEARS ON AMERICANS' PERCEPTION OF WHETHER MR CLINTON HAS SUCCEEDED IN BREAKING WASHINGTON'S POLITICAL GRIDLOCK DAVID'S POLITICAL PHILOSOPHY IS GRASSROOTS ORIENTED SAYS PAUL BEGALA A CHIEF CLINTON CAMPAIGN STRATEGIST WHO IS EXPECTED TO CONTINUE WORKING CLOSELY WITH MR WILHELM IN FACT MR WILHELM COMES FROM THE KIND OF PLACE THAT SYMBOLIZES GRASSROOTS AMERICA HE IS A NATIVE OF ATHENS OHIO THE SON OF AN EAST GERMAN EMIGRE WHO FIRMLY LATCHED ONTO THE DEMOCRATIC PARTY HE LOOKS LIKE THE GUY NEXT DOOR WHO COULD BE RUNNING A HARDWARE STORE SAYS MR BEGALA HE LOOKS LIKE HE HAS MIDDLECLASS VALUES BEFORE HE WAS 20 MR WILHELM WAS HELPING ORGANIZE SOUTHERN OHIO FOR JIMMY CARTER'S CAMPAIGN AFTER GRADUATING FROM OHIO UNIVERSITY AND HARVARD'S KENNEDY SCHOOL OF GOVERNMENT MR WILHELM HAD A SERIES OF JOBS IN WHICH HE MOVED BACK AND FORTH BETWEEN POLITICS AND POLICY OFTEN IN THE SERVICE OF CANDIDATES AND ORGANIZATIONS IDENTIFIED WITH THE MORE LIBERAL WING OF THE DEMOCRATIC PARTY HE WORKED FOR THE BUDGET COMMITTEE STAFF OF OHIO SEN HOWARD METZENBAUM AND THEN JOINED CITIZENS FOR TAX JUSTICE IN 1981 AT THE TIME THE ORGANIZATION WAS ENGAGED IN A FIGHT AGAINST RONALD REAGAN'S TAXCUT POLICIES ARGUING THAT THEY WERE BENEFITING THE RICH AT THE EXPENSE OF THE MIDDLE CLASS AND THE POOR WE TESTIFIED AGAINST IT AGITATED AGAINST IT AND AT THAT TIME THE ATMOSPHERE WAS THAT IT WAS GOING TO HAPPEN RECALLS ROBERT MCINTYRE DIRECTOR OF CITIZENS FOR TAX JUSTICE REAGANOMICS PASSED BUT MR WILHELM WAS HELPING SOW THE SEEDS FOR THE TAXREFORM BILL OF 1986 AND FOR BILL CLINTON'S 1992 CAMPAIGN MANTRA THAT THE NATION'S ECONOMIC POLICIES FOR 12 YEARS HAD SYSTEMATICALLY SQUEEZED THE MIDDLE CLASS WHILE POINTLESSLY BALLOONING THE FEDERAL DEFICIT MR WILHELM WENT ON TO DO RESEARCH FOR THE AFLCIO THEN HELPED RUN SEN PAUL SIMON'S SUCCESSFUL CAMPAIGN FOR THE SENATE IN 1984 HE WORKED FOR SEN JOSEPH BIDEN'S SHORTLIVED 1988 PRESIDENTIAL CAMPAIGN RAN UNSUCCESSFULLY FOR CONGRESS HIMSELF AND HELPED MANAGE RICHARD M DALEY'S CAMPAIGN FOR MAYOR OF CHICAGO MUTUAL ACQUAINTANCES BROUGHT HIM TOGETHER WITH MR CLINTON BEFORE THE PRESIDENTELECT LAUNCHED HIS CAMPAIGN AND SOON MR WILHELM WAS RECRUITED TO BECOME CAMPAIGN MANAGER I THINK THE FACT THAT I WAS HAPPILY WILLING TO GO TO LITTLE ROCK WAS KEY MR WILHELM SAYS MR WILHELM BECAME THE LINK TO TRADITIONAL CONSTITUENCIES SUCH AS LABOR HE ALSO PLAYED A KEY ROLE IN KEEPING A LUKEWARM REV JESSE JACKSON BEHIND THE CLINTON EFFORT AND THE CONTRIBUTION THAT CLINTON VETERANS WILL ALWAYS REMEMBER IS HIS PROPOSAL FOR THE POSTCONVENTION BUS TRIP BY MR CLINTON AND VICE PRESIDENTIAL NOMINEE AL GORE THE IDEA WASN'T UNIVERSALLY POPULAR AT FIRST IN AN ACT OF SINGULAR STUPIDITY I SAID IT WON'T WORK IT WILL REMIND PEOPLE OF THE OLD DEMOCRATIC PARTY RECALLS JAMES CARVILLE THE CLINTON CAMPAIGN'S MAIN POLITICAL STRATEGIST MR CLINTON BOUGHT THE IDEA THOUGH AND IT TURNED INTO A PUBLIC RELATIONS BONANZA BUT MR WILHELM ALSO WAS OVERSHADOWED IN MANY RESPECTS BY MORE VISIBLE FIGURES SUCH AS MR CARVILLE CAMPAIGN CHAIRMAN MICKEY KANTOR AND COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS AND THERE WERE MOMENTS OF TENSION AT ONE POINT MR WILHELM HAD A SHOWDOWN WITH OTHER CAMPAIGN OFFICIALS WHO DIDN'T WANT TO RELEASE MONEY TO MINORITY GROUPS FOR VOTERREGISTRATION DRIVES DESIRING INSTEAD TO USE IT FOR ADVERTISING MR WILHELM PREVAILED AND SOME MONEY WENT OUT IN THE END THE CAMPAIGN TURNED INTO A PERSONAL TRIUMPH FOR MR WILHELM AND HIS WIFE DEGEE WHO WAS MR CLINTON'S EXECUTIVE ASSISTANT MR WILHELM A SERIOUS SPORTS FAN CELEBRATED VICTORY IN PART BY SHOWING UP FOR A BOSTON CELTICS BASKETBALL GAME AND BEING INVITED AFTERWARDS TO TAKE A FEW SHOTS ON THE CELEBRATED PARQUET FLOOR OF BOSTON GARDEN NOW HE BEGINS THE TASK OF USING CAMPAIGNLIKE TACTICS TO WHIP UP POLITICAL PRESSURE TO PASS A CLINTON PROGRAM WE NEED TO HAVE PEOPLE WHO GET ON TALK SHOWS WHO GET ON TELEVISION WHO WRITE LETTERS TO THE EDITOR HE SAYS I THINK WE HAVE TO HAVE A VERY MODERN STATEOFTHEART SYSTEM 9301150128 930115 INTERNATIONAL WORLD ECONOMY ECONOMISTS SAY MIDWEST SHOULD PROFIT FROM MEXICO'S BID TO OPEN ITS ECONOMY BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS BILL CLINTON MOVES TO ACCEPT AND SUPPLEMENT THE TRADE AGREEMENT WITH MEXICO AND CANADA THAT HE INHERITS NO PART OF THE NATION SEEMS MORE WARY THAN THE MIDWEST THE REGION TOO OFTEN BELITTLED AS A WORNOUT RUST BELT DEEP ANXIETY ABOUT THE NORTH AMERICAN FREE TRADE AGREEMENT LINGERS THERE UNEASY WORKERS SUSPECT THEY MAY YET HEAR THAT DREADED GREAT SUCKING SOUND PREDICTED BY ROSS PEROT OF JOBS FLOWING SOUTH TO LOWCOST MEXICAN BARRIOS THE ISSUE EVEN HELPED SOME CONGRESSIONAL INCUMBENTS LOSE THEIR SEATS IN LAST FALL'S ELECTION AND THE NERVOUSNESS PERSISTS SOME EXPECT THE ECONOMIC WORST YET THEY PROBABLY SHOULDN'T IF ANY US REGION WILL GAIN FROM MEXICO'S EFFORTS TO EXPAND AND OPEN ITS ECONOMY IT IS THE MIDWEST MEXICAN BUYERS ARE FILLING ORDER BOOKS OF MANY US COMPANIES TURNING WHAT WAS A TRADE DEFICIT INTO A 7 BILLION ANNUAL SURPLUS AND A GOOD SHARE GOES TO MIDWESTERN MAKERS OF MACHINE TOOLS AND CONSTRUCTION EQUIPMENT IF THERE'S A LESSON IN THIS SAY MANY ECONOMISTS IT'S THE OLD ONE THAT FREER TRADE PAYS OFF IN THE LONG RUN DESPITE POSSIBLE SHORTTERM PAIN MEXICO'S GROWTH STEMS FROM POLICIES THAT PRY OPEN A FORMERLY MORIBUND ECONOMY AND WILL LET NAFTA MEMBERS DO MORE OF WHAT THEY DO BEST US COMPANIES WILL BE SHORTTERM WINNERS AND EVERYONE WILL BE WINNERS IN THE LONG RUN SAYS DONALD JACOBS A FREETRADER WHO IS DEAN OF NORTHWESTERN UNIVERSITY'S GRADUATE BUSINESS SCHOOL US COMPANIES GET THE MESSAGE MEXICO AND CHILE ARE THE LATIN NATIONS THAT HAVE DONE MOST TO EXPAND FOREIGN COMMERCE IN RECENT TIMES NOTES A CATERPILLAR INC SPOKESMAN THE RESULTS PROVE ONCE AGAIN THAT HEALTHY TRADE GOES WITH HIGH ECONOMIC GROWTH HE SAYS ANY BIGTIME LOSERS IN FACT WILL MORE LIKELY BE AMERICA'S COMPETITORS IN EUROPE AND JAPAN LEFT ON THE WRONG SIDE OF TARIFF WALLS SURROUNDING NAFTA'S SPACE ONCE THE AGREEMENT'S TERMS TAKE HOLD AND TARIFFS ON THE INSIDE FALL THOSE OVERSEAS SHIPPERS WILL FACE A 10 TO 20 PRICE DISADVANTAGE AT LEAST UNTIL GLOBAL AGREEMENTS BRING DOWN BARRIERS FOR EVERYONE SO WHAT'S BEING BOUGHT FROM THE US CAPITAL GOODS ANSWERS BARRY BOSWORTH AN ECONOMIST AT THE BROOKINGS INSTITUTION THAT IS THE RESTRAINT ON MEXICAN GROWTH AND THE US IS OVERWHELMINGLY DOMINANT IN THAT MARKET BULLDOZERS TRUCK ENGINES CORN AND MANY OTHER GOODS AND SERVICES ARE IN THE MIX AS WELL MOST OF THEM AMONG THE MAJOR PRODUCTS OF THOSE STATES NEAR THE GREAT LAKES OR JUST TO THE SOUTH IN FACT IT'S AN INDUSTRIAL BELT MORE PRIMED THAN RUSTY THESE DAYS HAVING ENDURED HARD KNOCKS IN RECESSION YEARS AND BEEN FORCED INTO SLIMDOWN EFFICIENCY A LOOK AT A SLEW OF MIDWESTERN COMPANIES INDICATES WHAT'S HAPPENING CATERPILLAR SOLD ONLY 11 BIG MACHINES IN MEXICO DURING PROTECTIONIST 1983 BUT SHIPPED 1200 IN 1991 AND MORE LAST YEAR A MASSIVE NEW MEXICAN TOLLROAD PROGRAM IS ONE MAJOR REASON NAVISTAR INTERNATIONAL CORP WHICH OWNS 17 OF A MEXICAN TRUCK BUILDER SENT IT 3000 ENGINES IN FISCAL 1991 LAST YEAR IT SOLD 10000 AND THIS YEAR WILL DO BETTER GIDDINGS & LEWIS INC FINDS MEXICAN FACTORIES ARE AUTOMATING QUICKLY AND WILL MAKE THAT COUNTRY ONE OF OUR MOST ACTIVE AREAS IN COMING YEARS SAYS ITS SALES MANAGER HE SAYS SALES AND ORDERS FOR ITS ADVANCED MACHINE TOOLS ALREADY HAVE RISEN 20 OVER THE PAST FEW YEARS MINSTER MACHINE CO ANOTHER CLOSELY HELD MACHINE TOOL MAKER ALSO EXPECTS BUSINESS TO INCREASE TREMENDOUSLY BEFORE LONG SAYS A SENIOR EXECUTIVE HE FINDS MEXICAN COMPANIES NEWLY CONCERNED ABOUT QUALITY AND READY TO STOP BUYING USED PRODUCTION EQUIPMENT THE EXPERTS AREN'T SURPRISED LABOR IS ABUNDANT BUT CAPITAL IS SCARCE SAYS DOUGLAS IRWIN OF THE UNIVERSITY OF CHICAGO'S GRADUATE BUSINESS SCHOOL THEY NEED A LOT MORE CAPITAL GOODS AND BRINGING DOWN THOSE HIGH TARIFFS WILL HELP US EXPORTERS MEET THAT DEMAND HE ADDS BUT PUBLIC PERCEPTIONS OF THE ACCORD'S IMPACT ARE SOMEWHAT DIFFERENT THE PART OF THE US MOST DEPENDENT ON INTERNATIONAL TRADE IS THE RUST BELT SAYS MR BOSWORTH OF BROOKINGS HIMSELF A MIDWESTENER YET ITS POLITICAL CONCERNS DON'T LINE UP WELL WITH ITS ECONOMIC INTERESTS FOR EXAMPLE THE UNITED AUTO WORKERS UNION IS ESPECIALLY CRITICAL EVEN THOUGH THE AUTO INDUSTRY PREDICTS HIGHER VEHICLE EXPORTS AS THE CLOSED MEXICAN MARKET OPENS WITH NET US JOB GAINS BUT THE UAW CONTENDS THERE WILL BE LARGE LOSSES AS MORE ASSEMBLY WORK TRANSFERS SOUTH OF THE BORDER ECONOMISTS SAY LOWSKILL JOBS WILL BE LOST ANYWAY THE CHALLENGE IS TO SEIZE OTHER OPPORTUNITIES THEY SEE THE TRADE AGREEMENT OFFERING A NEARLY TEXTBOOK EXAMPLE OF FREETRADE GAINS FOR EVERYONE ONCE THOSE MOST CONCERNED TAKE A CLOSER LOOK 9301150127 930115 INTERNATIONAL ARAB ALLIES OFFER MUTED RESPONSE TO RAID FEARING FUNDAMENTALISTS BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL RESIDENTS OF SAUDI ARABIA WERE THE FIRST TO HEAR ALLIED WARPLANES STREAKING TOWARD IRAQ WEDNESDAY BUT THEY MAY HAVE BEEN THE LAST TO HEAR ABOUT THE ATTACK HOURS AFTER US BRITISH AND FRENCH BOMBERS HIT IRAQ THERE WAS NO MENTION OF THE RAID ON SAUDI TELEVISION NOT UNTIL EARLY THURSDAY DID THE SAUDI NEWS AGENCY INDIRECTLY MENTION THE ATTACK BY CARRYING A WIRE STORY ON A WHITE HOUSE NEWS CONFERENCE WHEN RIYADH RADIO FINALLY REPORTED THE RAID THURSDAY IT WAS ONLY AFTER CARRYING A STORY THAT CONDEMNED ISRAEL'S RECENT DEPORTATION OF PALESTINIANS SAUDI ARABIA'S HANDLING OF THE AIR RAID IS A REPLAY OF THE GULF CRISIS WHEN NEWS OF IRAQ'S INVASION OF KUWAIT WENT UNREPORTED IN THE KINGDOM FOR 48 HOURS BUT THE CAUTIOUS SAUDI RESPONSE TO WEDNESDAY'S ACTION ECHOED BY EGYPT'S EXPRESSION OF DEEP SORROW OVER THE ATTACK ALSO REFLECTS THE LEGACY OF THE GULF WAR US ALLIES IN THE REGION NOW MORE FEARFUL OF THEIR OWN FUNDAMENTALISTS THAN OF SADDAM HUSSEIN ARE EAGER TO DISTANCE THEMSELVES FROM THE US SUPPORT FOR THE US HAS BEEN FURTHER ERODED BY CYNICISM ABOUT WASHINGTON'S INTENTIONS FUELED BY WESTERN ACTIONS OR INACTION ELSEWHERE IN THE WORLD THE RAID SHOWED HOW GOOD THE US IS AT PRECISION BOMBING A SAUDI EDITOR SAYS SO WHY CAN'T IT DO THE SAME TO SERBIAN GUNS ADDS TAHSEEN BASHEER A VETERAN EGYPTIAN DIPLOMAT MUSLIM GIRLS ARE BEING RAPED IN BOSNIA PALESTINIANS HAVE BEEN DEPORTED TO LEBANON YET SADDAM PLAYS HIS OLD TIRED GAME WITH A FEW MISSILES AND THE US INTERVENES WITH A BIG SHOW THAT PRODUCES NOTHING MR BASHEER LIKE MANY ARABS THINKS THE BOMBING RAID WAS A PERSONAL THING TO SATISFY PRESIDENT BUSH BEFORE HE LEAVES OFFICE AFTER ALL ARABS POINT OUT SADDAM HUSSEIN HAS COMMITTED MANY SUCH VIOLATIONS IN THE PAST EVEN RETRIEVING WEAPONS INSIDE KUWAIT WITHOUT BEING PUNISHED THEY SUSPECT THE RAID WILL ENHANCE SADDAM HUSSEIN'S IMAGE AND HURT THAT OF US ALLIES WHILE SUCH DISENCHANTMENT APPEARS TO POSE NO REAL THREAT TO THE US IN THE FORM OF TERRORISM THE WIDESPREAD CYNICISM SUGGESTS THERE IS LITTLE ARAB SUPPORT FOR STRONGER MILITARY ACTION AGAINST IRAQ KUWAIT IS THE EXCEPTION AND THE EMIRATE OPENLY CELEBRATED WEDNESDAY'S ATTACK IT WAS A BIG RELIEF ALTHOUGH WE WERE DISAPPOINTED THAT THE ATTACK DIDN'T ALSO HIT AIR BASES AND SADDAM'S HIDEOUTS SAYS BUSINESSMAN MAJD ALANSARI WHO WAS IN A RESTAURANT WHEN NEWS OF THE ATTACK CAME HE AND OTHER PATRONS WHOOPED WITH JOY OVER THE PAST WEEK TENSE KUWAITIS HAVE MADE A RUN ON GAS STATIONS AND SUPERMARKETS AS WELL AS DRAWING MONEY FROM BANKS NOW MR ANSARI SAYS PEOPLE WILL SLEEP A LOT BETTER WITH AN AMERICAN BATTALION ON THE GROUND IN ADDITION TO THE AIR STRIKE PRESIDENT BUSH ALSO DISPATCHED ABOUT 1200 US SOLDIERS TO DEFEND KUWAIT'S BORDERS AGAINST IRAQ MANY OTHERS IN THE PERSIAN GULF STATES QUIETLY WELCOMED THE ATTACK THOUGH SOME FEAR THAT A DEFANGED IRAQ WILL ONLY INVITE A RESURGENT IRAN TO FILL A GULF POWER VACUUM MEANWHILE COUNTRIES THAT SUPPORTED IRAQ IN THE GULF WAR WERE PREDICTABLY CRITICAL OF THE AIR STRIKES THOUGH THEIR CONDEMNATION WAS MORE MUTED THAN TWO YEARS AGO WHEN STREET PROTESTS ERUPTED PEOPLE ARE ANGRY AT THE US FOR PUNISHING IRAQ WHILE PAMPERING ISRAEL AND SERBIA SAYS SARI NASIR A SOCIOLOGY PROFESSOR AT THE UNIVERSITY OF JORDAN BUT THEY ARE ALSO ANGRY AT SADDAM FOR GIVING THE ALLIES AN EXCUSE TO ATTACK IRAQ PALESTINIAN LEADERS TOOK A SIMILAR TACK CRITICIZING THE US AND CALLING ON SADDAM HUSSEIN TO END HIS PROVOCATIONS YEMEN ANOTHER IRAQI ALLY IN THE GULF WAR ALSO WAS SUBDUED WE ARE PAINED BY WHAT HAPPENED TO OUR SISTER IRAQI PEOPLE STATE TELEVISION SAID SYRIA AND TURKEY TWO RELUCTANT ALLIES OF THE WEST IN THE GULF WAR HAD MIXED RESPONSES SYRIA EXPRESSED SUPPORT FOR KUWAIT WHILE BLASTING WESTERN TOLERATION OF ISRAEL'S EXPULSION OF PALESTINIANS TURKEY'S RESPONSE WAS SUMMED UP IN A NEWSPAPER HEADLINE THAT READ VERY GOOD BUT WHAT ABOUT BOSNIA AMATZIA BARAM AN IRAQ EXPERT AT HAIFA UNIVERSITY IN ISRAEL LIKE MANY ARABS THINKS THE ATTACK WILL STRENGTHEN SADDAM IN THE SHORTTERM HE SEES THE IRAQI LEADER AS NEAR DESPERATION IN HIS NEED TO SHORE UP SUPPORT FROM HIS OWN MILITARY IF YOU RULE THROUGH FEAR AS SADDAM DOES YOU CAN NEVER BE SEEN AS CHICKEN HE SAYS AT THE SAME TIME BY PULLING BACK BEFORE PROVOKING AN ALLOUT ATTACK HE SHOWED COMMON SENSE AS WELL HE ALSO SEES IRAQ'S PROVOCATIONS AS A WAY OF TESTING THE ARAB WORLD AND SAYS LUKEWARM ARAB SUPPORT FOR THE USLED ATTACK MAY ENCOURAGE HIM ANEW IF KING FAHD OF SAUDI ARABIA AND EGYPTIAN PRESIDENT HOSNI MUBARAK FEEL THEY CAN'T OPENLY SUPPORT EVEN A LIMITED STRIKE THEN THEY WILL CERTAINLY ADVISE AMERICA AGAINST ANYTHING STRONGER MR BARAM ADDS 9301150126 930115 HOME INTENSIVE CARE GETS 6ASHARE BID FROM WR GRACE MIAMI HOME INTENSIVE CARE INC SAID IT RECEIVED AN UNSOLICITED TAKEOVER BID FROM WR GRACE & CO FOR 6 A SHARE IN CASH OR A TOTAL OF ABOUT 94 MILLION HOME INTENSIVE CARE'S CHIEF FINANCIAL OFFICER JOEL B BIRNBAUM SAID THE COMPANY WAS SURPRISED BY THE OFFER WE HAD HAD SOME VERY VERY PRELIMINARY TALKS WITH WR GRACE WHICH STARTED ABOUT A MONTH AND A HALF AGO HE SAID BUT THEY WERE OFFTHECUFF MR BIRNBAUM SAID HE WASN'T AWARE OF ANY STAKE IN HOME INTENSIVE CARE CURRENTLY HELD BY WR GRACE HOME INTENSIVE CARE HAS 157 MILLION COMMON SHARES OUTSTANDING HE SAID ACCORDING TO HOME INTENSIVE CARE WR GRACE A SPECIALTY CHEMICALS COMPANY BASED IN BOCA RATON FLA ASKED FOR AN ANSWER TO ITS PROPOSAL BY WEDNESDAY HOME INTENSIVE CARE IN A STATEMENT SAID IT IS NOT YET PREPARED TO RESPOND TO THE OFFER MR BIRNBAUM SAID THE COMPANY'S BOARD WOULD MEET WITH ITS FINANCIAL ADVISERS TO CONSIDER THE PROPOSAL WR GRACE THROUGH ITS NATIONAL MEDICAL CARE SUBSIDIARY IS ONE OF THE LARGEST PROVIDERS OF KIDNEYDIALYSIS SERVICES IN THE COUNTRY WITH MORE THAN 400 CENTERS HOME INTENSIVE CARE WHICH PRIMARILY PROVIDES INFUSION THERAPY TO PATIENTS IN THEIR HOMES ALSO OPERATES 13 DIALYSIS CLINICS WHICH ACCOUNT FOR ABOUT ONEQUARTER OF THE COMPANY'S ANNUAL REVENUE HOME INTENSIVE CARE HAS INDICATED THAT REVENUE FROM ITS DIALYSIS CLINICS HAS BEEN INCREASING SIGNIFICANTLY ALMOST DOUBLING IN 1992 FROM 1991 THROUGH THE FIRST NINE MONTHS OF 1992 HOME INTENSIVE CARE REPORTED EARNINGS OF 27 MILLION OR 18 CENTS A SHARE ON REVENUE OF 609 MILLION WR GRACE DECLINED TO COMMENT ON THE POSSIBLE ACQUISITION CONFIRMING ONLY THAT IT HAD MADE THE PROPOSAL IN OVERTHECOUNTER TRADING YESTERDAY HOME INTENSIVE CARE CLOSED AT 4375 A SHARE UP 625 CENTS IN NEW YORK STOCK EXCHANGE TRADING WR GRACE CLOSED AT 38 A SHARE UP 375 CENTS 9301150125 930115 ECONOMY DOMESTIC ENERGY CONCERNS FAVOR FEE ON OIL IMPORTS OVER GASOLINE TAX RISE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SEVERAL LARGE DOMESTIC OIL AND GAS COMPANIES ARE URGING PRESIDENTELECT CLINTON TO ADOPT AN OILIMPORT FEE RATHER THAN INCREASE GASOLINE TAXES TO CUT THE FEDERAL DEFICIT THAT POSITION WIDENS THE CHASM BETWEEN COMPANIES THAT ARE SOLELY DOMESTIC ENERGY PRODUCERS AND LARGE MULTINATIONALS THAT RELY ON FOREIGN OIL TO SUPPLY REFINERIES AND GASOLINE STATIONS IN THE US TWO GROUPS REPRESENTING DOMESTIC PRODUCERS THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA AND THE NATIONAL ASSOCIATION OF ROYALTY OWNERS HAVE COME OUT IN FAVOR OF AN IMPORT FEE AND YESTERDAY THREE ENERGY EXECUTIVES SAID THEY WERE CONVINCED THAT SOME FORM OF ENERGY TAX WAS INEVITABLE AND ARGUED THAT AN IMPORT FEE WOULD PROVIDE GREATER BENEFITS PEOPLE ARE TALKING ABOUT AN ENERGY TAX AS A CORNERSTONE OF ECONOMIC POLICY SAID FORREST HOGLUND CHAIRMAN OF ENRON OIL & GAS CO THERE'S A BETTER ALTERNATIVE THAN A GASOLINE TAX THE PRESIDENTELECT HAS SAID RECENTLY THAT A 15CENT INCREASE IN THE GASOLINE TAX WAS EXCESSIVE AND WOULD PLACE A DISPROPORTIONATE BURDEN ON PEOPLE IN WESTERN STATES WHO DRIVE LONGER DISTANCES HE SAID AN IMPORT FEE WOULD HIT STATES THAT HAVE OTHER USES FOR OIL BESIDES DRIVING SPREADING THE BURDEN OF REDUCING THE DEFICIT MR HOGLUND WAS JOINED AT A NEWS CONFERENCE BY RAYMOND PLANK CHAIRMAN OF APACHE CORP AND GEORGE MITCHELL CHAIRMAN OF MITCHELL ENERGY & DEVELOPMENT CORP THEY SAID THAT A GASOLINE TAX AND AN IMPORT FEE BOTH WOULD PROVIDE FUNDS TO REDUCE THE FEDERAL DEFICIT AND CUT US DEPENDENCE ON FOREIGN OIL BUT THEY SAID AN IMPORT FEE WHAT THEY'RE DUBBING AN ENERGY SECURITY FEE WOULD HAVE GREATER IMPACT THE US IMPORTED 462 OF ITS OIL LAST YEAR UP FROM 456 IN 1991 ACCORDING TO FIGURES RELEASED THIS WEEK BY THE AMERICAN PETROLEUM INSTITUTE WE PAY A BIG COST IN THIS COUNTRY TO PROVIDE ACCESS TO FOREIGN IMPORTS OF OIL SAID MR PLANK REFERRING TO THE USLED BOMBING RAID AGAINST IRAQ WEDNESDAY AND THE GULF WAR TWO YEARS AGO IN ADDITION THE EXECUTIVES SAID AN IMPORT FEE WOULD RAISE ENERGY PRICES ENOUGH TO INCREASE DRILLING IN THE US SPURRING JOB GROWTH AND INVESTMENT IN THE PAST DECADE THOUSANDS OF COMPANIES WENT UNDER AND HUNDREDS OF THOUSANDS OF JOBS WERE LOST IN THE DOMESTIC OIL INDUSTRY IN PART BECAUSE PRICES WEREN'T HIGH ENOUGH TO SPUR DRILLING FOR NEW DOMESTIC RESERVES THE EXECUTIVES ADDED THAT AN IMPORT FEE WOULD ENCOURAGE THE USE OF NATURAL GAS WHICH BURNS MORE CLEANLY THAN OIL AND WHICH IS IN GREAT DOMESTIC SUPPLY DESPITE THESE CALLS FOR AN IMPORT FEE THERE ISN'T UNANIMITY IN THE OIL INDUSTRY ON ONE SIDE ARE THE SOCALLED INDEPENDENTS LIKE APACHE MITCHELL AND ENRON OIL & GAS THAT HAVE LIMITED OVERSEAS EXPOSURE AND DON'T OWN REFINERIES OR GASOLINE STATIONS ON THE OTHER SIDE ARE MAJOR OIL COMPANIES THAT BUY FOREIGN CRUDE TO FEED THEIR REFINERIES AND GASOLINE STATIONS AND INDEPENDENT REFINERS THAT DON'T HAVE ANY CRUDE PRODUCTION OF THEIR OWN I STRONGLY OPPOSE SUCH A FEE BECAUSE IT WOULD RAISE THE PRICE OF ENERGY IN THE US AND HURT OUR GLOBAL COMPETITIVENESS SAID KENNETH DERR CHAIRMAN OF CHEVRON CORP WHICH REFINES 138 MILLION BARRELS OF CRUDE DAILY HALF OF IT IMPORTED MORE THAN ANY OTHER COMPANY IT WOULD ALSO LEAD TO A TREMENDOUS NEW REGULATORY BUREAUCRACY AN EXXON CORP SPOKESMAN SAID THAT AN IMPORT FEE WOULD INCREASE CONSUMER PRICES INCREASE INFLATION AND REDUCE REAL GROSS NATIONAL PRODUCT HE SAID A FEE WOULD ALSO BOOST THE COSTS ON US MANUFACTURED GOODS AND PUT THEM AT A DISADVANTAGE AGAINST FOREIGN GOODS BOTH DOMESTICALLY AND ABROAD AN IMPORT FEE RAISES DIFFICULT QUESTIONS ABOUT THE INCREASED PRESENCE OF FOREIGN OIL PRODUCERS IN THE US FOR INSTANCE VENEZUELA'S NATIONAL OIL COMPANY SELLS A LOT OF CRUDE THROUGH ITS US SUBSIDIARY CITGO PETROLEUM CORP A LARGER REFINER AND MARKETER STAR ENTERPRISE WHICH REFINES SAUDI ARABIAN CRUDE AND MARKETS GASOLINE IN THOUSANDS OF SERVICE STATIONS UNDER THE TEXACO BRAND IS A JOINT VENTURE OF TEXACO INC AND SAUDI ARABIA YOU HAVE TO LOOK AT WHAT'S BEST FOR THE NATION NOT YOUR TRADING PARTNERS ARGUED MR MITCHELL AN IMPORT FEE FACES BIG POLITICAL HURDLES TOO A WASHINGTON LOBBYIST FOR A MAJOR OIL COMPANY NOTED THAT THE NORTHEAST BURNS A LOT OF IMPORTED HEATING OIL AND THAT TWO POWERFUL SENATORS MAINE'S GEORGE MITCHELL AND NEW YORK'S DANIEL MOYNIHAN COULD OPPOSE A FEE BECAUSE IT WOULD BURDEN THEIR PART OF THE COUNTRY 9301150124 930115 PHILIP MORRIS'S MILLER BREWING UNIT IS BUYING 20 OF CANADA'S MOLSON BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL IN A BELATED EFFORT TO CATCH UP WITH ANHEUSERBUSCH COS' AGGRESSIVE EXPORT CAMPAIGN MILLER BREWING CO IS ACQUIRING 20 OF MOLSON BREWERIES CANADA'S LARGEST BREWER FOR 273 MILLION THE ACQUISITION WHICH ALSO INCLUDES MOLSON'S US OPERATIONS COULD GIVE BRING SOME FIZZ BACK TO MILLER THE UNIT OF PHILIP MORRIS COS WAS HIT HARD BY THE COLD WEATHER THAT HURT THE US BEER INDUSTRY LAST YEAR AND THE BREWER COMPOUNDED ITS PROBLEMS WITH AN ADVERTISING CAMPAIGN THAT FAILED TO REVIVE SALES OF ITS FLAGSHIP MILLER LITE THE NATION'S NO 2RANKED BREW SHIPMENTS OF MILLER LITE MILWAUKEE'S BEST AND MILLER HIGH LITE ALL FELL IN 1992 MILLER GENUINE DRAFT WAS THE ONLY ONE OF ITS BRANDS IN THE BEER INDUSTRY'S TOP 10 TO INCREASE SHIPMENTS LAST YEAR ACCORDING TO JOBSON'S 1993 HANDBOOK ADVANCE WHICH TRACKS BEER SALES JOHN N MACDONOUGH MILLER'S PRESIDENT SAID THAT IN THE FLAT US BEER MARKET IT'S DIFFICULT TO GROW THE TRANSACTION WILL ENABLE MILLER TO PICK UP ROUGHLY 07 OF A MARKETSHARE POINT AND WILL OFFER AN INTERNATIONAL GROWTH VEHICLE HE SAID SOME IN THE INDUSTRY REACTED POSITIVELY TO THE ACQUISITION SAYING MILLER HAS LACKED A STRONG IMPORTED BEER IN ITS LINEUP ITS ONE ENTRANT LOWENBRAU CULTIVATES A GERMAN IMAGE BUT IS MADE IN THE US THEY SAID THAT WITH MILLER'S MARKETING AND DISTRIBUTION MUSCLE MOLSON'S US SALES COULD RISE SIGNIFICANTLY MOLSON BREWERIES IS A UNIT OF MOLSON COS TORONTO NICOLAS FURLOTTE EDITORIAL DIRECTOR OF JOBSON'S CALLED THE MOLSON'S INVESTMENT A TERRIFIC MOVE ONE THAT MAKES MILLER A MORE IMPORTANT PLAYER IN THE INTERNATIONAL AND DOMESTIC BEER MARKET BUT OTHERS POINTED OUT THAT NO 3RANKED MOLSON WAS ONE OF THE FEW IMPORTS TO SHOW A US SALES DECLINE LAST YEAR ITS 16 DECLINE IN SHIPMENTS WAS DUE IN PART TO 3ACASE SURCHARGE IMPOSED BY THE US IN A TRADE DISPUTE BUT A MORE LASTING PROBLEM IS THAT ALTHOUGH MOLSON IS CANADA'S LEADING BREWER IT TRAILS HEINEKEN OF THE NETHERLANDS AND MEXICO'S CORONA IN THE US MARKET IMPORTS ACCOUNT FOR ONLY ABOUT 4 OF US BEER SALES WITH SALES STAGNANT AT HOME PHILIP MORRIS AND OTHER US BREWERS ARE INCREASINGLY LOOKING TO FOREIGN MARKETS AND PARTNERS FOR GROWTH ACQUIRING FOREIGN BEER MAKERS AS WELL AS LOOKING TO SELL THEIR US BRANDS ABROAD IN DECEMBER PHILIP MORRIS ACQUIRED ABOUT 8 OF MEXICO'S LARGEST BEER COMPANY FOMENTO ECONOMICO MEXICANO SA MANY ANALYSTS EXPECT PHILIP MORRIS TO EVENTUALLY TAKE FULL CONTROL OF ITS NEW PARTNERS IN MEXICO AND CANADA ITS MOVE FOLLOWS PERSISTENT RUMORS LAST YEAR THAT PHILIP MORRIS WAS INTERESTED IN ACQUIRING HEINEKEN NV THE DUTCH BREWING GIANT MR MACDONOUGH MILLER'S PRESIDENT DECLINED TO COMMENT ON HEINEKEN BUT SAID WE WILL CONTINUE TO AGGRESSIVELY SEEK OUT NEW OPPORTUNITIES TO STRENGTHEN OUR INTERNATIONAL PRESENCE BUT MILLER HAS LAGGED FAR BEHIND ST LOUISBASED POWERHOUSE ANHEUSERBUSCH AND EVEN ADOLPH COORS CO IN PUSHING ITS DOMESTIC BRANDS AROUND THE WORLD FRANK WALTERS OF M SHANKEN COMMUNICATIONS AN ALCOHOLIC BEVERAGE RESEARCH FIRM SAYS MILLER HAS BEEN LATE IN CATCHING ON TO THE REALITY THAT IT HAS TO BE A DYNAMIC WORLD MARKETER TO SUCCEED HE SAYS ANHEUSERBUSCH SAW THAT EARLIER MR WALTERS ESTIMATES THAT IN 1991 ANHEUSERBUSCH EXPORTED TWO MILLION BARRELS OF ITS BEER COMPARED WITH 700000 FOR MILLER FOR THE MOMENT IT REMAINS UNCERTAIN WHETHER IT WILL BE EASIER FOR US COMPANIES TO BUY FOREIGN BREWERS OR TO MARKET THEIR US BREWS ABROAD ON THE ONE HAND TASTES IN BEERS VARY GREATLY FROM COUNTRY TO COUNTRY SO THE PRODUCTS DON'T CROSS BORDERS AS EASILY AS LEVIS COCA COLA OR MCDONALD'S HAMBURGERS IN EUROPE US BEERS ARE OFTEN DERIDED AS TOO BLAND BUT STEPHEN BURROWS EXECUTIVE VICE PRESIDENT OF INTERNATIONAL MARKETING FOR ANHEUSERBUSCH SAYS THAT COMPANY'S FLAGSHIP BUDWEISER BRAND IS SELLING WELL FROM IRELAND TO JAPAN THE WORLD IS BECOMING MORE HOMOGENEOUS HE SAYS OUR STRATEGY IS TO BUILD BUDWEISER INTO AN INTERNATIONAL BRAND 9301150123 930115 VALERO ENERGY EXPECTS TO REPORT DECLINE IN PROFIT BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL VALERO ENERGY CORP EXPECTS TO REPORT FOURTHQUARTER AND FULLYEAR EARNINGS SIGNIFICANTLY LOWER THAN A YEAR EARLIER BECAUSE OF THE WEAK REFINING MARKETPLACE SAID WILLIAM GREEHEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER IT'S GOING TO BE BAD MR GREEHEY SAID WE'LL STILL SHOW A PROFIT BUT WE'RE GOING TO BE DOWN FROM WHERE WE WERE IN 1991 HE SAID IN AN INTERVIEW IN THE 1991 FOURTH QUARTER THE SAN ANTONIO REFINER HAD NET INCOME OF 228 MILLION OR 53 CENTS A SHARE ON REVENUE OF 1954 MILLION FOR THE YEAR VALERO'S PROFIT WAS 987 MILLION OR 228 A SHARE ON REVENUE OF 101 BILLION IN ADDITION TO WEAK REFINING PROFIT MARGINS INDUSTRYWIDE VALERO'S FEEDSTOCK COSTS WERE HIGHER THAN USUAL LAST QUARTER VALERO'S REFINERIES PROCESS HIGHSULFUR RESIDUAL OIL A HEAVY OIL THAT GENERALLY SELLS FOR 5 A BARREL BELOW THE PRICE OF THE CRUDE OIL THAT FEEDS MOST REFINERIES BUT LAST QUARTER SEVERAL LARGE MIDDLE EAST AND FAR EAST REFINERIES THAT MAKE AND SELL RESIDUAL OIL SHUT DOWN FOR REPAIRS AT THE SAME TIME CAUSING RESIDUAL OIL PRICES TO RISE THAT NARROWED THE DISCOUNT TO CRUDE OIL TO AS LITTLE AS 3 A BARREL REDUCING ONE OF VALERO'S KEY ADVANTAGES OVER OTHER REFINERS NOW THOSE REFINERIES ARE BACK ON PRODUCTION AND WE'RE SEEING THE NORMAL SPREAD BACK MR GREEHEY SAID BUT ANOTHER DISAPPOINTMENT TO VALERO WAS THE PRICE OF A GASOLINE ADDITIVE IT MAKES CALLED METHYL TERTIARY BUTYL ETHER OR MTBE THAT WAS USED BY MANY GASOLINE MARKETERS BEGINNING THIS FALL TO MEET CLEAN AIR ACT RULES INTENDED TO CURB CARBON MONOXIDE EMISSIONS IN MUCH OF THE COUNTRY SOME MARKETERS FEARED MTBE WOULD BE IN SHORT SUPPLY THIS WINTER SO THEY BOOSTED THEIR INVENTORIES BEGINNING LAST SUMMER AS A RESULT MTBE PRICES IN THE PEAK DEMAND PERIOD PLUNGED WHILE MTBE SOLD FOR AN AVERAGE OF 90 CENTS A GALLON IN 1992 MR GREEHEY SAID IT NOW SELLS FOR 71 CENTS BECAUSE OF A TEMPORARY OVERSUPPLY THIS YEAR YOU WON'T SEE THE BUILDUP FOR MTBE HE PREDICTS BECAUSE EVERYBODY GOT BURNED BY PUTTING SO MUCH IN INVENTORY SOME PEOPLE HAVE CONCLUDED THAT A GLUT OF MTBE WILL LAST FOR SOME TIME BUT MR GREEHEY DISAGREES AND SAID VALERO'S NEW 230 MILLION MTBE PLANT WILL BEGIN PRODUCTION IN MARCH IN ADDITION VALERO ALSO HOPES TO BREAK GROUND ON AN MTBE PLANT IN MEXICO THIS YEAR MR GREEHEY SAID THE COST COULD BE CLOSER TO 325 MILLION 25 MILLION BELOW EARLIER PROJECTIONS MR GREEHEY SAID HE RECENTLY TALKED TO MEXICO'S PRESIDENT CARLOS SALINAS DE GORTARI AND OTHER GOVERNMENT OFFICIALS ABOUT A POTENTIAL 500 MILLION PLANT IN MONTERREY MEXICO THAT WOULD REMOVE POLLUTING SULFUR FROM PETROLEUM PRODUCTS AT AN ADJACENT REFINERY MR GREEHEY SAID VALERO WOULD CHARGE A PROCESSING FEE BUT NEVER TAKE POSSESSION OF THE OIL PRODUCTS MR GREEHEY SAID HE IS OPTIMISTIC ABOUT 1993 FIRST OF ALL THE ECONOMY IS GETTING STRONGER AND WE'VE SEEN AN INCREASE IN GASOLINE DEMAND WHICH IS A BIG PLUS HE SAID ALSO OTHER REFINERIES ARE CLOSING DOWN WHICH EVENTUALLY COULD REDUCE SUPPLY ENOUGH TO BOOST MARGINS HE SAID 9301150122 930115 MOVIES SOMBER THEMES OF TWO NEW FILMS TEST MERITS OF STUDIOS' MARKETING STRATEGIES BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD A CHARTERED PLANE CARRYING A URUGUAYAN RUGBY TEAM CRASHES IN THE ANDES AND FOR 10 WEEKS THE PLAYERS DO EVERYTHING THEY CAN TO SURVIVE INCLUDING EATING THEIR DEAD TEAMMATES THAT DISQUIETING SCENARIO IS THE HEART OF WALT DISNEY CO'S 25 MILLION FILM ALIVE WHICH OPENS TODAY BASED ON PIERS PAUL READ'S 1974 BOOK ALIVE THE MOVIE TELLS THE STORY OF A 1972 PLANE CRASH IN WHICH 16 OF THE 45 PASSENGERS SURVIVED FOR 72 DAYS BEFORE BEING RESCUED NO AIRPORT COPYCAT THE STORY STRESSES THE HARSH REALITIES OF SURVIVAL NOWHERE WILL THOSE REALITIES BE MORE APPARENT THAN AT THE BOX OFFICE WHERE WITHOUT CAREFUL HANDLING ALIVE COULD BE DEAD ON ARRIVAL THE PRINCIPAL QUESTION IS WHETHER A TRUELIFE STORY ABOUT PAIN SUFFERING AND CANNIBALISM WILL ATTRACT AUDIENCES LOOKING FOR ENTERTAINMENT I DIDN'T WANT TO NOT SHOW THE CANNIBALISM THAT WAS A COPOUT AND PEOPLE WOULD HAVE SAID HE DISNEYFIED THE EVENT' SAYS DIRECTOR FRANK MARSHALL WHOSE FIRST FILM FOR DISNEY ARACHNOPHOBIA DIDN'T FARE WELL AT THE BOX OFFICE BECAUSE MANY VIEWERS WERE TOO SPOOKED BY SPIDERS TO GO SEE IT ALIVE HAS EVEN MORE FORMIDABLE OBSTACLES TO OVERCOME DISNEY WHICH COPRODUCED THE FILM WITH PARAMOUNT PICTURES AND HAS THE DOMESTIC DISTRIBUTION RIGHTS ORIGINALLY PLANNED TO OPEN IT AROUND THANKSGIVING ITS RELEASE WAS DELAYED WHILE THE STUDIO TRIED TO FIGURE OUT HOW TO MARKET THE FILM STUDIOS ARE SKITTISH ABOUT THE PAINANDSUFFERING GENRE AS AUDIENCES ARE EASILY TURNED OFF IF THEY THINK A MOVIE WILL BE TOO DEPRESSING TWENTIETH CENTURY FOX'S DYING YOUNG DID EXACTLY THAT AFTER IT OPENED IN THE SUMMER OF 1991 TAKING IN A DISAPPOINTING 32 MILLION IN SPITE OF JULIA ROBERTS'S NAME ON THE MARQUEE SAMUEL GOLDWYN CO'S THE WATERDANCE ABOUT A PARAPLEGIC AND LONGTIME COMPANION ABOUT PEOPLE WITH ACQUIRED IMMUNE DEFICIENCY SYNDROME WERE BOTH CRITICAL SUCCESSES THAT DID ONLY MODEST BUSINESS IF YOU HAVE ONE NIGHT A WEEK TO GO SEE A MOVIE AND SOMEONE DESCRIBING A FILM TO YOU IN SEVEN WORDS OR LESS SAYS IT'S ABOUT A GUY IN A WHEELCHAIR IN A REHABILITION WARD' YOU'LL PROBABLY GO SEE SOMETHING ELSE SAYS RICH BORNSTEIN VICE PRESIDENT OF PUBLICITY FOR GOLDWYN THE TRICK IS GETTING AUDIENCES TO OVERCOME THEIR APPREHENSION BY LETTING THEM KNOW THERE IS MORE TO THE MOVIE THAN SUFFERING A STRATEGY SUCCESSFULLY USED ON SUCH PAST FILMS AS LOVE STORY THE ELEPHANT MAN COMING HOME AND BORN ON THE FOURTH OF JULY THAT HAS ALSO BEEN UNIVERSAL PICTURES' STRATEGY WITH LORENZO'S OIL BASED ON THE TRUE STORY OF TWO PARENTS' HUNT FOR A THERAPY FOR THEIR SON'S RARE DISEASE THE FILM HAS EARNED GOOD REVIEWS AND A GOLDEN GLOBE NOMINATION FOR ACTRESS SUSAN SARANDON AND IT HAS PLAYED TO PACKED HOUSES IN A LIMITED RELEASE IN NEW YORK LOS ANGELES AND TORONTO WORDOFMOUTH ON LORENZO'S OIL IS STRONG WITH EXIT POLLS SHOWING A 90 FAVORABLE RESPONSE UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC DIVISION IS HOLDING ITS BREATH TO SEE WHETHER THAT WILL TRANSLATE INTO LONG LINES AT THE BOX OFFICE WHEN THE FILM'S RELEASE EXPANDS TO 102 THEATERS TODAY AND NATIONWIDE NEXT WEEK IN TERMS OF SELLING THE FILM THE REVIEWS HAVE REALLY DONE THAT FOR US GIVEN THAT AT FIRST GLANCE PEOPLE MIGHT THINK THIS IS A TV DISEASEOFTHEWEEK MOVIE SAYS LORENZO'S OIL DIRECTOR AND PRODUCER GEORGE MILLER IT'S CERTAINLY ABOUT A CHILDHOOD ILLNESS BUT IT'S MUCH BIGGER THAN THAT THERE'S A SENSE OF TRIUMPH AND HOPE AT THE END THE SENSEOFTRIUMPH THEME IS THE SAME ONE DISNEY IS USING TO ENTICE VIEWERS TO SEE ALIVE PRINT ADS FOR THE FILM SHOW THE MOVIE'S YOUNG STARS IN A SNOWSWEPT SETTING WITH THE COPY SAYING THE FILM IS ABOUT THE TRIUMPH OF THE HUMAN SPIRIT THE STUDIO IS SEEKING TO CONVEY THAT THE MOVIE IS SORT OF A DEAD POETS SOCIETY' GOES MOUNTAINEERING PARTICULARLY AS BOTH DISNEY FILMS FEATURE THE SAME YOUNG ACTOR ETHAN HAWKE THE TRAILERS FOR ALIVE SHOW ACTOR JOHN MALKOVICH THE FILM'S NARRATOR IN SCENES AT THE BEGINNING AND END TALKING ABOUT THE TEAMWORK AND SPIRITUALISM THAT SUSTAINED THE SURVIVORS MR MARSHALL BALKED AT EARLIER TRAILERS SHOWING THE GROUP DISCUSSING CANNIBALISM OUT OF FEAR THAT AUDIENCES WOULD THINK THIS WAS AN IRWIN ALLEN DISASTER FILM TELEVISION ADS FOR ALIVE HINT AT THE CANNIBALISM TELLING AUDIENCES THAT THE CRASH SURVIVORS WERE FORCED TO DO THE UNTHINKABLE DISNEY EXECUTIVES DEBATED WHETHER TO DISCLOSE THAT TIDBIT AND ULTIMATELY DECIDED THAT VIEWERS SHOULD HAVE SOME IDEA OF WHAT THEY WOULD BE GETTING SOMETIMES THE BEST APPROACH IS TO HIT THEM DEADON SOMETIMES NOT SAYS BARRY LONDON PRESIDENT OF PARAMOUNT PICTURES' MOTIONPICTURE GROUP WORLDWIDE DISTRIBUTION PARAMOUNT PICTURES A UNIT OF PARAMOUNT COMMUNICATIONS INC HAS THE INTERNATIONAL DISTRIBUTION RIGHTS TO ALIVE IT WILL THUS BE WATCHING CLOSELY TO SEE HOW WELL DISNEY'S APPROACH WORKS BEFORE IT FINALIZES PLANS FOR THE OVERSEAS LAUNCH OF ALIVE IN APRIL THE DIRECTOR MR MARSHALL THINKS THE BROADER THEMES IN ALIVE ABOUT ENDURANCE TEAMWORK AND SPIRITUALITY WILL OVERSHADOW ANY DISTASTE VIEWERS MAY HAVE ABOUT CANNIBALISM I'M A MARATHON RUNNER AND AS AN ATHLETE YOU ALWAYS TALK ABOUT HOW FAR YOU CAN PUSH YOURSELF HE SAYS WELL THIS STORY IS THE ULTIMATE VERSION OF THAT AS FOR THE CANNIBALISM WHICH IS IN FACT A SMALL PORTION OF THE MOVIE IT IS PUT IN A RELIGIOUS CONTEXT WITH THE CHARACTERS DRAWING A PARALLEL TO CHRISTIANITY'S RITES OF COMMUNION THIS WAS THE EXPLANATION THE ACTUAL SURVIVORS GAVE WHEN THEY HAD TO EXPLAIN TO THE WORLD HOW THEY HAD LIVED THESE ARE THE OLDEST QUESTIONS OF MANKIND MR MARSHALL SAYS DOES THE BODY HAVE A SOUL DOES THE SOUL LEAVE THE BODY AFTER WE DIE SHOULD WE SURVIVE AT ALL COSTS NANDO PARRADO THE SURVIVOR PLAYED BY MR HAWKE IN ALIVE SAYS MR MARSHALL DID A GOOD JOB OF EXPLAINING THE DILEMMA HE AND HIS FRIENDS FACED HE FOCUSED ON THE UNTHINKABLE THE FACT THAT WE HAD TO EAT HUMAN FLESH WITH EXACTLY THE SAME INTENSITY WE GAVE IT ON THE MOUNTAIN SAYS MR PARRADO NOW 42 YEARS OLD WHO ALONG WITH SURVIVOR ROBERTO CANESSA TREKKED 10 DAYS ACROSS THE ANDES WITHOUT MOUNTAINEERING EQUIPMENT TO GET HELP FOR THE GROUP HE DIDN'T GIVE IT MORE IMPORTANCE IN THE MOVIE THAN THE OTHER THINGS WE HAD TO FIGHT AGAINST LIKE COLD AND THIRST DESPITE THE INTENSE SCENES NOT THE LEAST OF WHICH IS ONE OF THE MOST REALISTIC AND HARROWING PLANE CRASH SEQUENCES ON FILM MR PARRADO SAYS HE THINKS THE RRATED ALIVE IS ONE OF THE FEW MOVIES THE WHOLE FAMILY CAN SEE THAT THEY CAN RELATE TO BECAUSE THIS STORY HAPPENED TO AVERAGE ORDINARY GUYS IT COULD HAVE BEEN YOU DESPITE SOME STUDIO APPREHENSION MICHAEL PATRICK HEAD OF THE CARMIKE CINEMAS INC CHAIN IS EXPECTING ALIVE TO DO BIG BUSINESS HE IS BASING THAT PREDICTION ON THE SUCCESS OF SURVIVE A CHEAPLY MADE 1976 MEXICAN ADAPTATION OF THE RUGBY TEAM'S STORY THAT EMPHASIZED THE CANNIBALISM ISSUE RECALLS MR PATRICK THAT DID GREAT BUSINESS FOR US 9301150121 930115 TECHNOLOGY & HEALTH SCIENTISTS DISCOVER TWO NEW METHODS TO CONVERT NATURAL GAS TO ALCOHOL FUEL BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL TWO NEW AND POTENTIALLY CHEAPER METHODS OF CONVERTING NATURAL GAS TO ALCOHOL OR OTHER LIQUID FUELS WERE REPORTED BY SCIENTISTS A PAIR OF CHEMICAL ENGINEERS AT THE UNIVERSITY OF MINNESOTA IN MINNEAPOLIS SAID THEY HAVE FOUND A CATALYST THAT CAN RAPIDLY CONVERT METHANE THE BURNABLE COMPONENT OF NATURAL GAS INTO SYNGAS A MIXTURE OF CARBON MONOXIDE AND HYDROGEN THAT CAN EASILY BE TURNED INTO METHANOL METHYL ALCOHOL OR EVEN DIESEL FUEL BY WELLKNOWN CHEMISTRY THEIR RESEARCH WAS SUPPORTED BY THE US DEPARTMENT OF ENERGY ANOTHER GROUP OF SCIENTISTS AT CATALYTICA INC A RESEARCH AND DEVELOPMENT COMPANY IN MOUNTAINVIEW CALIF SAID THEY DEVELOPED AN ENTIRELY NEW SERIES OF CHEMICAL REACTIONS USING CATALYSTS TO MAKE METHANOL DIRECTLY FROM METHANE THEIR RESEARCH WAS PART OF A JOINT PROGRAM WITH PETROCANADA AND TECHMOCISCO INC A SUBSIDIARY OF MITSUBISHI OIL CO LTD BOTH RESEARCH GROUPS SAID THEY HOPE THEIR DISCOVERIES WILL ULTIMATELY LEAD TO ECONOMICAL WAYS TO CONVERT NATURAL GAS TO LIQUIDS THAT CAN BE EASILY AND SAFELY SHIPPED TO MARKETS AT PRESENT THE ONLY WAY TO MOVE NATURAL GAS BEYOND THE REACH OF PIPELINES IS TO COOL IT WELL BELOW A MINUS 164 DEGREES CELSIUS AND SHIP IT IN HIGHLY INSULATED TANKERS AN EXPENSIVE AND SOME SAY DANGEROUS MANNER OF TRANSPORT BOTH RESEARCH TEAMS DESCRIBE THEIR DISCOVERIES IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE THE MINNESOTA RESEARCHERS DANIEL A HICKMAN AND LANNY D SCHMIDT DESCRIBE A DISCOVERY THAT SPEEDS UP A LONGKNOWN CHEMICAL ROUTE TO METHANOL THIS ROUTE INVOLVES FIRST PRODUCING SYNGAS BY REACTING METHANE WITH STEAM AT HIGH TEMPERATURES THE PROBLEM IS THAT THIS SOCALLED OLD STEAM REFORMING METHOD IS SLOW AND THEREFORE REQUIRES LARGE REACTOR VESSELS TO PRODUCE SYNGAS IN VOLUME IT ALSO PRODUCES CARBON DIOXIDE ONE OF THE INDUSTRIAL POLLUTANTS SUSPECTED OF CONTRIBUTING TO GLOBAL WARMING THE TWO SCIENTISTS SAID THEY FOUND THAT THEY COULD PRODUCE SYNGAS BY RUNNING A MIXTURE OF METHANE AND OXYGEN OR AIR OVER EITHER A PLATINUM OR A RHODIUM CATALYST THE CATALYST MUST INITIALLY BE ACTIVATED BY HEATING IT BUT ONCE IT BEGINS TRIGGERING THE CHEMICAL REACTIONS THE METHANE AND OXYGEN CAN BE PUMPED INTO A REACTOR AT NEAR ROOM TEMPERATURES DR SCHMIDT EXPLAINED THE REACTION CONVERTING THE METHANE AND OXYGEN TO SYNGAS TAKES PLACE 1000 TO 10000 TIMES FASTER THAN IN THE OLD STEAM REFORMING REACTION THE PAIR REPORTED THIS MEANS THAT MUCH SMALLER REACTORS WOULD BE NEEDED FOR A COMMERCIAL SYNGAS PLANT THUS REDUCING CAPITAL COSTS DR SCHMIDT SAID ONCE THE SYNGAS IS PRODUCED IT CAN BE EASILY CONVERTED TO METHANOL OR DIESEL FUEL BY WELLKNOWN CHEMICAL PROCESSES THE CATALYTICA RESEARCHERS DESCRIBED A PROCESS THAT AVOIDS HAVING TO MAKE SYNGAS THE CATALYTICA RESEARCHERS SAID THEY HAD SOLVED A MAJOR PROBLEM THAT HAS PLAGUED OTHER ATTEMPTS TO USE A CATALYST TO CONVERT METHANE DIRECTLY TO METHANOL TOO OFTEN CHEMICALS PRODUCED DURING SOME STEPS IN THE PROCESS ARE HIGHLY REACTIVE LETTING THE CATALYST TRIGGER UNWANTED REACTIONS EXPLAINED ROY A PERIANA THE PROJECT LEADER IN THEIR NEW SYSTEM THE CATALYTICA RESEARCHERS USE A CATALYST COMPOSED OF A WATERSOLUBLE FORM OF MERCURY KNOWN AS MERCURYII THE METHANE IS REACTED BY THE CATALYST WITH SULFURIC ACID AND SULFUR TRIOXIDE THIS PRODUCES A COMPOUND CALLED METHYL BISULFATE WHICH IS IS FAR LESS REACTIVE THAN METHANE THUS THE CATALYST CAN'T TRIGGER THE METHYL BISULFATE TO UNDERGO ANY FURTHER CHEMICAL REACTIONS THE METHYL BISULFATE IS THEN REACTED WITH WATER TO PRODUCE METHANOL AND SULFURIC ACID THE PROCESS CONVERTS ABOUT 43 OF THE METHANE TO METHANOL VS 3 OR SO FOR OTHER DIRECT CONVERSION PROCESSES THE RESEARCHERS SAID 9301150120 930115 CLINTON CAN CUT THE BUREAUCRACY HERE'S HOW BY DONALD DEVINE OF BILL CLINTON'S MANY PROMISES ONE OF THE CLEAREST WAS THIS ONE I WILL ELIMINATE 100000 UNNECESSARY POSITIONS IN THE BUREAUCRACY I WILL CUT 100000 FEDERAL GOVERNMENT POSITIONS THROUGH ATTRITION I WILL REQUIRE FEDERAL MANAGERS AND WORKERS TO ACHIEVE A 3 ACROSSTHEBOARD ADMINISTRATIVE SAVINGS IN EVERY FEDERAL AGENCY THESE ADMIRABLE WORDS APPEAR IN PUTTING PEOPLE FIRST MR CLINTON'S CAMPAIGN BOOK THE BAD NEWS IS THAT CUTTING 100000 FEDERAL JOBS WILL BE DIFFICULT THE UNIONS AND MANAGERIAL ASSOCIATIONS WILL PROTEST VIGOROUSLY THE CAREER MANAGERS WILL RESIST HAVING FEWER SUBORDINATES WITH WHICH TO BUILD THEIR EMPIRES AND THE POLITICAL APPOINTEES WILL TRY TO AVOID UNPOPULAR DECISIONS THAT WILL ATTRACT NEGATIVE PRESS ATTENTION THE GOOD NEWS IS THAT IT CAN BE DONE RONALD REAGAN SHOWED HOW IN THE 1980 ELECTION CAMPAIGN MR REAGAN PROMISED TO REDUCE THE SIZE OF THE BUREAUCRACY IN OFFICE HE DEFINED HIS GOAL AS A 75000PERSON DECREASE IN NONDEFENSE FULLTIME PERSONNEL BY THE END OF HIS FIRST TERM NONDEFENSE FEDERAL EMPLOYMENT HAD GONE DOWN BY 78650 SIGNIFICANTLY ABOUT 90 OF THE DECREASE WAS ACHIEVED BY THE END OF THE FIRST YEAR UNFORTUNATELY BY THE END OF MR REAGAN'S SECOND TERM NONDEFENSE EMPLOYMENT TOTALS HAD EDGED BACK UP NEARLY TO JIMMY CARTER LEVELS THE PROBLEM WAS THAT THE ENERGY OF THE FIRST TERM HAD DISSIPATED SPECIFICALLY THE FIRST TERM'S HIRING FREEZE HAD ENDED AND THE NATURAL FORCES OF BUREAUCRATIC GROWTH WERE ALLOWED TO REASSERT THEMSELVES THEY CONTINUED TO THRIVE UNDER PRESIDENT BUSH WHO HAD NO CLEAR TARGETS OR SPECIFIC PLANS FOR CUTTING BACK THE FEDERAL PAYROLL INDEED THE DOMESTIC BUREAUCRACY UNDER MR BUSH INCREASED BY 24283 BASED ON MY EXPERIENCE AS MR REAGAN'S DIRECTOR OF PERSONNEL MANAGEMENT I HAVE A FEW SUGGESTIONS FOR THE PRESIDENTELECT ASSUMING HE INTENDS TO FOLLOW UP ON HIS CAMPAIGN PROMISE ON INAUGURATION DAY INSTITUTE A TOTAL FREEZE ON FEDERAL HIRING EXCEPT POLITICAL APPOINTMENTS AND DECLARE A 3 ACROSSTHEBOARD ADMINISTRATIVE CUT ONLY THIS SORT OF BLUNTINSTRUMENT APPROACH WILL WORK BECAUSE IT ALLOWS NO EXCEPTIONS BUREAUCRATIC GAMING CAN'T STAND IN THE WAY LATER A MORE FLEXIBLE FREEZE POLICY WOULD BE WISE BUT CONTINUED OVERSIGHT BY THE OFFICE OF PERSONNEL MANAGEMENT IS CRITICAL DEMAND THAT CONGRESS ELIMINATE MINIMUM STAFFING LEVELS IN ALL DEPARTMENTS AND AGENCIES NO PRESIDENT CAN REDUCE THE FEDERAL PAYROLL IF LARGE AREAS OF PERSONNEL ARE OFFICIALLY IMMUNE FROM REDUCTIONS ASK FOR MONTHLY ACCOUNTS OF FULLTIME EMPLOYMENT FROM THE OFFICE OF PERSONNEL MANAGEMENT WITHOUT REGULAR REPORTS THE GOAL OF TRIMMING THE BUREAUCRACY IS TOO EASILY FORGOTTEN AND ITS STEADY REGROWTH CAN GO UNNOTICED DEMAND FROM CONGRESS THE ELIMINATION OF LEGISLATIVE LIMITS ON THE NUMBER OF POLITICAL APPOINTEES AND REDUCE THE EXECUTIVE OFFICE OF THE PRESIDENT BY 25 MORE POLITICAL APPOINTEES ARE NEEDED IF THE BUREAUCRACY IS NOT TO SMOTHER REFORMS IT IS POLITICAL APPOINTEES WHO DETERMINE WHETHER AN ADMINISTRATION IS SUCCESSFUL BUT THE PRESIDENT'S EXECUTIVE OFFICE IS BLOATED BY ITS OWN BUREAUCRACY CUTTING IT BACK DRAMATICALLY WILL FORCE OTHER AGENCIES AND CONGRESS TO DO LIKEWISE UNFORTUNATELY MR CLINTON IS ALREADY BACKING AWAY FROM HIS SMALL BUT HIGHLY SYMBOLIC PLEDGE TO CUT THE WHITE HOUSE STAFF BY 25 HE SHOULDN'T ANNOUNCE A MAJOR DRIVE TO PRIVATIZE AND CONTRACT OUT GOVERNMENT SERVICES STATES AND LOCAL GOVERNMENTS HAVE USED PRIVATIZATION TO CUT COSTS AND IMPROVE EFFICIENCY THE FEDERAL GOVERNMENT SHOULD DO THE SAME RIGHT NOW THE BIDDING PROCESS IS RIGGED WOULDBE PRIVATE CONTRACTORS MUST FACTOR ALL OVERHEAD COSTS INTO THEIR BIDS WHILE GOVERNMENT AGENCIES ARE ALLOWED TO EXCLUDE MANY ITEMS FROM THEIRS LOADING THE DICE IN THIS WAY OFTEN DEPRIVES THE TAXPAYER OF MORE EFFICIENT AND CHEAPER SERVICE IF MR CLINTON TAKES PROMPT AND DECISIVE STEPS SUCH AS THESE HE CAN CUT THE OVERHEAD COST OF GOVERNMENT AND HELP THE FEDERAL WORK FORCE TO FUNCTION MORE EFFICIENTLY THE FEDERAL BUREAUCRACY IS A BLOATED TARGET FOR MANAGEMENT AND BUDGETARY REFORM PERSONNEL COSTS WAGES AND BENEFITS ADD UP TO 155 OF TOTAL DOMESTIC SPENDING AND OTHER ADMINISTRATIVE OVERHEAD ADDS 24 MORE SO EVEN MINOR EFFICIENCY GAINS TRANSLATE INTO BIG SAVINGS AND OF COURSE CUTTING BACK PERSONNEL ISN'T THE ONLY WAY TO SAVE MONEY FOR EXAMPLE FEDERAL RETIREMENT ACCOUNTS ADD UP TO 4 OF THE BUDGET BY SIMPLY LIMITING INCREASES TO THE MAXIMUM AMOUNT OF THE SOCIAL SECURITY COSTOFLIVING ADJUSTMENT IT WOULD BE POSSIBLE TO SAVE 1 BILLION THE FIRST YEAR AND 20 BILLION OVER FIVE YEARS A GOOD TEST OF MR CLINTON'S COMMITMENT TO CHANGE WILL BE HIS WILLINGNESS TO ATTEMPT SUCH THINGS HE CAN START BY HONORING HIS PROMISE TO ELIMINATE UNNECESSARY POSITIONS IN THE BUREAUCRACY HE DOESN'T HAVE TO STOP THERE MR DEVINE WAS DIRECTOR OF THE US OFFICE OF PERSONNEL MANAGEMENT 198185 THIS IS ADAPTED FROM A MEMO TO PRESIDENTELECT CLINTON WRITTEN FOR THE HERITAGE FOUNDATION 9301150119 930115 INTERNATIONAL PLANESALE PACTS WITH TAIWAN FACE CHALLENGES BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN LAWMAKERS IN TAIWAN ERECTED A POTENTIALLY SERIOUS ROADBLOCK TO THE GOVERNMENT'S AGREEMENTS TO BUY ADVANCED US AND FRENCH FIGHTER JETS FOR A TOTAL OF MORE THAN 12 BILLION THE LAWMAKERS WERE ANGERED THAT THERE WERE NO PROVISIONS FOR PARTICIPATION BY LOCAL MANUFACTURERS THE LEGISLATURE PASSED A MEASURE REQUIRING THE TAIWAN GOVERNMENT TO RENEGOTIATE AGREEMENTS WITH MAKERS OF THE F16 AND MIRAGE 20005 WARPLANES TO INCLUDE PROVISIONS FOR TECHNOLOGY TRANSFER AND LOCAL CONTENT UNDER THE MEASURE THE NEW AGREEMENTS WOULD HAVE TO SPECIFY THAT THE VALUE OF LOCALLY MADE PARTS IN THE F16 AND MIRAGE JETS AS WELL AS FUTURE PURCHASES OF WARPLANES FROM ABROAD EQUAL 10 OF THE PRICE LEGISLATORS SAID AS A RESULT THE GOVERNMENT COULD BE REQUIRED TO RENEGOTIATE THE DEALS WITH THE MAKERS OF BOTH PLANES GENERAL DYNAMICS CORP OF THE US WHICH PRODUCES THE F16 AND FRANCE'S DASSAULT AVIATION SA WHICH MAKES THE MIRAGE PRESIDENT BUSH LAST SEPTEMBER APPROVED THE 6 BILLION SALE TO TAIWAN OF 150 F16 FIGHTERS AND EARLY THIS MONTH THE FRENCH GOVERNMENT AUTHORIZED THE SALE OF 60 MIRAGE JETS THE FRENCH DEAL ORIGINALLY WAS REPORTED TO TOTAL 26 BILLION BUT LEGISLATORS SAY THE COMPLETE PACKAGE OF MIRAGE FIGHTERS WEAPONS AND OTHER EQUIPMENT WILL TOTAL 67 BILLION NEITHER CONTRACT INCLUDED PROVISIONS FOR TECHNOLOGY TRANSFER OR LOCAL PROCUREMENT OF PARTS GENERAL DYNAMICS HAS TAKEN THE POSITION IN THE PAST THAT ALL SUCH NEGOTIATIONS OCCUR BETWEEN US AND TAIWANESE GOVERNMENTS BUT AFTER THE LATEST DEVELOPMENTS A SPOKESMAN FOR THE COMPANY WHICH IS BASED IN FALLS CHURCH VA SAID WE'RE NOT AWARE OF ANY REASON TO BE CONCERNED ABOUT THE FUTURE OF OUR PROGRAM AS FAR AS WE KNOW OUR PROGRAM IS GOING TO PROCEED ON COURSE IF PROBLEMS ARISE LATER WITH TAIWANESE FUNDING HOWEVER THEY WON'T BE GENERAL DYNAMICS' HEADACHE LOCKHEED CORP HAS AGREED TO PURCHASE THE F16 OPERATIONS AS PART OF A 152 BILLION DEAL SLATED TO BE MADE FINAL EARLY THIS YEAR 9301150118 930115 COMPUTERS MICROSOFT SELLS DATABASE EASILY GLITCHES AND ALL BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP'S NEW PERSONALCOMPUTER DATABASE IS FACING SHARP CRITICISM FOR BUGS AND MISSING FEATURES BUT IS SELLING LIKE CRAZY ANYWAY A TESTIMONY TO THE PROGRAM'S ROCKBOTTOM PRICE AND MICROSOFT'S MARKET CLOUT THE DATABASE CALLED ACCESS IS BEING CLOSELY WATCHED BECAUSE IT REPRESENTS MICROSOFT'S FIRST MAJOR PUSH INTO THE PC DATABASE MARKET WHICH HAS BEEN DOMINATED BY BORLAND INTERNATIONAL INC BUT BORLAND HAS BEEN SLOW TO INTRODUCE VERSIONS OF ITS PARADOX AND DBASE APPLICATIONS THAT WORK ON MICROSOFT'S WINDOWS OPERATING SOFTWARE BORLAND SAID IT WILL LAUNCH ITS FIRST COUNTERPUNCH AGAINST MICROSOFT ON FEB 1 WHEN IT BEGINS OFFERING PARADOX FOR WINDOWS AT A SUGGESTED PRICE OF 139 FOR THE FIRST 90 DAYS MICROSOFT SAYS IT SOLD 375000 COPIES OF ACCESS IN THE SIX WEEKS FOLLOWING THE PRODUCT'S MIDNOVEMBER RELEASE PRICED AT 99 OR ONEFIFTH THE NORMAL CHARGE FOR A DATABASE PROGRAM ACCESS HAS BEEN SELLING SO FAST THAT CUSTOMERS CAN'T FIND COPIES ON SOME STORE SHELVES MICROSOFT HAS TAKEN ORDERS ON 500000 COPIES TO DATE AND EXPECTS TO HAVE SOLD A TOTAL OF 750000 BY JAN 31 WHEN THE SUGGESTED PRICE FOR ACCESS GOES TO 495 IN 1992 THE NUMBER OF PC DATABASES SOLD EXCLUDING ACCESS WAS LESS THAN 125 MILLION THERE'S NEVER BEEN ANY NEW APPLICATION THAT'S SOLD LIKE THIS WE'RE TOTALLY AMAZED SAYS MICHAEL MAPLES MICROSOFT'S EXECUTIVE VICE PRESIDENT BUT THE LARGE SALES HAVE BEEN ACCOMPANIED BY AN OUTPOURING OF COMPLAINTS AND POOR REVIEWS CUSTOMERS HAVE CHIDED MICROSOFT FOR FAILING TO PROVIDE BETTER DOCUMENTATION CLOSER LINKS TO EXISTING DATABASE PROGRAMS AND A SPECIAL RELEASE OR KIT FOR PEOPLE WHO WANT TO CUSTOMIZE ACCESS FOR THEIR OWN SYSTEMS EVEN MORE FRUSTRATING TO SOME IS THE TENDENCY FOR ACCESS TO CRASH INEXPLICABLY WHEN IT COMES INTO CONTACT WITH OTHER PROGRAMS AND HARDWARE IT DIES ABRUPTLY I LOSE DATA REGULARLY AND IT CORRUPTS DATA SAYS CHRIS HEARN AN ATLANTA SOFTWARE WRITER WHO SPECIALIZES IN DATABASES FOR FLORISTS STILL CUSTOMERS SEEMINGLY CAN'T RESIST THE SUPERLOW PRICE OF THE PRODUCT THE FIRST DATABASE BY A MAJOR SUPPLIER DESIGNED TO WORK ON ALL PCS POWERED BY INTEL CORP CHIPS AND RUNNING WINDOWS SOFTWARE FOR 99 HOW MAD CAN SOMEONE GET ASKS PAT ADAMS A DATABASE SPECIALIST IN BROOKLYN NY MS ADAMS IS A CASE IN POINT WHILE DISMISSING ACCESS AS A TOY DATABASE THAT'S NOT READY FOR PRIME TIME SHE SAYS SHE ADVISES HER CLIENTS TO BUY ACCESS AND LEARN IT I JUST DON'T RECOMMEND THAT THEY USE IT ON LIVE DATA YET SHE ADDS MICROSOFT IS SENSITIVE TO CHARGES THAT ACCESS IS UNRELIABLE TANGLED DATABASES ARE MORE OF A HEADACHE FOR CUSTOMERS THAN SAY WORDPROCESSING FAILURES NOTING THAT FIRST VERSIONS OF PROGRAMS FROM EVERY SUPPLIER ARE USUALLY BUGGY MR MAPLES INSISTS THAT ACCESS HAS FAR FEWER BUGS THAN MOST FIRST VERSIONS SAYING THERE ARE ONLY 20 OR SO ERRORS IN THE PRODUCT'S 700000 LINES OF CODE MICROSOFT HAS POSTED WORK AROUNDS FOR THE ACCESS BUGS ON ELECTRONIC BULLETIN BOARDS AND MANY CUSTOMERS ARE SATISFIED WITH THESE FIXES OR ONES THEY HAVE CONCOCTED ON THEIR OWN ONCE OVER THIS HUMP ACCESS IS EASY TO WORK WITH SAYS STAN SMITH AN ENGINEER AT HEWLETTPACKARD CO WHICH BOUGHT 50 COPIES FOR ITS PRINTERMANUFACTURING PLANT IN CAMAS WASH CONFUSION OVER ACCESS IS UNDERSTANDABLE SOME SAY BECAUSE THE PRODUCT IS NOT AIMED AT DATABASE SPECIALISTS WHO HAVE THE TIME AND EXPERTISE TO LEARN THE INTRICACIES OF BORLAND'S PARADOX OR EVEN MORE COMPLICATED PROGRAMS FROM INFORMIX CORP OR ORACLE CORP ACCESS IS NOT A PROGRAM FOR THOSE WHO WANT TO DO HARDCORE DEVELOPMENT SAYS CARY PRAGUE DIRECTOR OF SOFTWARE PRODUCTIVITY AT TRAVELERS INSURANCE WHO IS WRITING A BOOK ABOUT THE PROGRAM ACCESS HE ADDS IS FOR THE LARGE GROUP OF NONSPECIALISTS THE FRUSTRATED DATABASE USER 9301150117 930115 TECHNOLOGY WORKPLACE SMOKE RULES LEFT UP TO CLINTON CAMP WASHINGTON THE LABOR DEPARTMENT DECIDED TO LEAVE WORKPLACE RULES ON SECONDHAND SMOKE TO THE CLINTON ADMINISTRATION OPTING INSTEAD TO STEP UP STUDY OF THE ISSUE QUESTIONS SURROUNDING PASSIVE TOBACCO SMOKE TOOK ON NEW URGENCY LAST WEEK WHEN THE ENVIRONMENTAL PROTECTION AGENCY REPORTED THAT THE SMOKE IS A HUMANLUNG CARCINOGEN SPURRING OFFICIALS AT THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION TO REVIEW OPTIONS OF HOW TO TREAT SMOKE IN WORKPLACES BUT OSHA ACTING ADMINISTRATOR DOROTHY STRUNK ARGUED THAT THE EPA REPORT FOCUSES ON THE RISK OF PASSIVE SMOKE IN HOUSEHOLDS OFFERING WEAKER EVIDENCE OF EFFECTS IN THE WORKPLACE SO LABOR SECRETARY LYNN MARTIN DETERMINED THAT BROAD EMERGENCY WORKPLACE RULES WOULD BE PREMATURE INSTEAD THE AGENCY WILL REVIEW SECONDHAND SMOKE IN WORKPLACES SEPARATELY FROM A MASSIVE LONGERTERM PROJECT TO EXAMINE STANDARDS OF WORKSITE AIR QUALITY A REVIEW EXPECTED TO BE UNDER WAY BY THE TIME ROBERT REICH BECOMES LABOR SECRETARY NEXT WEEK UNTIL NOW THE BROADER AIRQUALITY STUDY HAD INCLUDED THE ISSUE OF SECONDHAND SMOKE 9301150116 930115 CANADA IS EXPECTED TO SAY IT WILL TAKE AN INTEREST IN HIBERNIA OILFIELD PROJECT BY ROSANNA TAMBURRI AND SUZANNE MCGEE STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL TAKE A DIRECT INTEREST IN THE HIBERNIA OILFIELD PROJECT TO KEEP THE 41 BILLION VENTURE ALIVE MURPHY OIL CORP EL DORADO ARK IS ALSO EXPECTED TO ANNOUNCE THAT IT INTENDS TO TAKE A SMALL INTEREST IN THE FIELD OFF CANADA'S EAST COAST THE FUTURE OF THE PROJECT HAS BEEN UNCERTAIN SINCE GULF CANADA RESOURCES LTD DECIDED LAST YEAR TO GIVE UP ITS 25 INTEREST BECAUSE OF THE HEAVY DEVELOPMENT COSTS GULF CANADA WHICH IS CONTROLLED BY TORONTO'S REICHMANN FAMILY HAS TRIED UNSUCCESSFULLY FOR SEVERAL YEARS TO FIND A BUYER FOR ITS INTEREST THE CANADIAN GOVERNMENT ALSO HAS TRIED TO FIND A NEW PARTNER FOR GULF'S ENTIRE STAKE TEXACO INC WHITE PLAINS NY RECENTLY DECIDED AGAINST PARTICIPATING EVEN THOUGH IT WAS OFFERED VARIOUS INDUCEMENTS BY THE CANADIAN GOVERNMENT OIL INDUSTRY SOURCES SAID THEY EXPECT THE GOVERNMENT WILL TAKE A 5 TO 10 INTEREST IN THE FIELD AND MURPHY WILL ACQUIRE MORE THAN 5 TWO OF HIBERNIA'S EXISTING PARTNERS THE CANADIAN DIVISIONS OF MOBIL CORP AND CHEVRON CORP ARE EXPECTED TO PICK UP THE BALANCE OF GULF'S STAKE MOBIL BASED IN NEW YORK CURRENTLY HOLDS 281 OF THE FIELD SAN FRANCISCOBASED CHEVRON HOLDS 219 AND PETROCANADA OF CALGARY ALBERTA HAS A 25 STAKE SOME OIL INDUSTRY ANALYSTS AND NEWSPAPERS HAVE CRITICIZED THE GOVERNMENT'S INVOLVEMENT IN HIBERNIA THE CANADIAN GOVERNMENT ALREADY HAS AGREED TO PROVIDE MORE THAN 2 BILLION IN GRANTS AND LOAN GUARANTEES FOR THE PROJECT HIBERNIA'S CRUDE WILL BE THE WORLD'S MOST EXPENSIVE TO PRODUCE SAID IAN DOIG EDITOR OF DOIG'S DIGEST AN INDUSTRY NEWSLETTER SOME ANALYSTS ESTIMATE THE COST OF PRODUCING HIBERNIA OIL AT MORE THAT 30 A BARREL THE FIELD HAS RECOVERABLE RESERVES OF 525 MILLION BARRELS HIBERNIA CRUDE IS TO BE SHIPPED TO US EAST COAST REFINERIES STARTING IN MID1997 HIBERNIA'S CRITICS CLAIM THE PROJECT IS AN EXCESSIVELY COSTLY JOBCREATION SCHEME FOR NEWFOUNDLAND CANADA'S POOREST PROVINCE NEWFOUNDLAND'S UNEMPLOYMENT RATE IS 20 ALMOST DOUBLE THE NATIONAL AVERAGE THE EFFECTS OF THE TERMINATION OF HIBERNIA ON NEWFOUNDLAND WOULD BE NOTHING SHORT OF DISASTROUS SAID CANADIAN FISHERIES MINISTER JOHN CROSBIE THE CONSORTIUM PARTNERS ALREADY HAVE SPENT ALMOST 800 MILLION TO BUILD A DRY DOCK AND WORK SITE FOR THE CONSTRUCTION OF THE HUGE RIG SCAFFOLDING FOR THE RIG'S BASE HAS BEEN ERECTED AND BUILDERS ARE TO START POURING CONCRETE IN THE SPRING HIBERNIA WHICH WAS DISCOVERED IN 1979 HAS BEEN DELAYED REPEATEDLY FIRST BY JURISDICTIONAL DISPUTES BETWEEN THE CANADIAN AND NEWFOUNDLAND GOVERNMENTS AND THEN BY DEPRESSED OIL PRICES MR DOIG THE ENERGY ANALYST SAID HIBERNIA'S PARTNERS HAVEN'T YET ARRANGED INSURANCE FOR THE 700FOOT HIGH RIG THAT IS TO BE TOWED TO THE PRODUCTION SITE ELEANOR BARKER ENERGY ANALYST AT THE TORONTO SECURITIES COMPANY SANWA MCCARTHY LTD SAID THE INSURANCE AND TOWING COSTS FOR THE CONCRETE AND STEEL RIG MAY BE A HUGE AMOUNT BUT IT JUST SEEMS POLITICALLY NECESSARY TO HAVE NEWFOUNDLANDERS AT WORK POURING CONCRETE SHE SAID PETROCANADA CHAIRMAN BILL HOPPER DEFENDED THE PROJECT HE PREDICTED THAT HIBERNIA WILL SPUR THE DEVELOPMENT OF OTHER EAST COAST OIL DISCOVERIES INCLUDING THE TERRA NOVA AND HEBRON FIELDS HOWEVER PETROCANADA ALSO HAS SAID IT HOPES TO SELL PART OF ITS 25 HIBERNIA STAKE 9301150114 930115 TECHNOLOGY & HEALTH RESEARCHERS REPORT ADVANCE IN CREATING MOLECULAR PACKAGES NEW WRAPPERS' BEAR SIMILARITY TO BUCKYBALLS MAY HAVE A NUMBER OF APPLICATIONS BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL CALL IT SHRINKWRAPPERENE SCIENTISTS SAID THEY HAVE DEVELOPED A PROCESS FOR PLACING TINY METAL CRYSTALS WITHIN CAGELIKE CARBON MOLECULES CREATING A NEW CLASS OF MATERIALS WITH POTENTIAL USES IN ELECTRONICS AND OTHER APPLICATIONS THE WRAPPERS OF THESE MOLECULAR PACKAGES RESEMBLE OVERGROWN COUSINS OF BUCKYBALLS CARBON CAGES FORMALLY NAMED BUCKMINSTERFULLERENE BECAUSE THEY RESEMBLE ARCHITECT BUCKMINSTER FULLER'S GEODESIC DOMES BUCKYBALLS REPEATEDLY HAVE SURPRISED SCIENTISTS DURING THE PAST TWO YEARS SHOWING VARIOUS ODD PROPERTIES AND PROMISING ADVANCES IN THE DEVELOPMENT OF INDUSTRIAL DIAMONDS NEW LUBRICANTS AND OTHER PRODUCTS RESEARCHERS CREATED THE NEW COMPOUND BY JUMPING A SPARK BETWEEN SMALL RODS OF GRAPHITE A FORM OF CARBON USED IN PENCIL LEAD ONE OF THE RODS HAD A HOLLOW CORE PACKED WITH A METALCONTAINING COMPOUND CALLED LANTHANUM OXIDE THE SPARKS DEPOSITED A GRAYISHBLACK STALACTITE ON THE OPPOSITE ROD PICTURES MADE WITH AN ELECTRON MICROSCOPE SHOWED THAT THE DEPOSIT WAS LACED WITH CARBON MOLECULES RESEMBLING EXPANDED OBLONG BUCKYBALLS ABOUT HALF OF THEM APPEARED TO ENCAPSULATE METAL CRYSTALS OF A LANTHANUMCARBON COMPOUND SAID RODNEY RUOFF A RESEARCHER AT SRI INTERNATIONAL MENLO PARK CALIF AND COAUTHOR OF THE STUDY A TEAM LED BY RICE UNIVERSITY RESEARCHER RICHARD SMALLEY PREVIOUSLY REPORTED TRAPPING SMALL CLUSTERS OF ATOMS INSIDE BUCKYBALLS BUT ONLY VERY SMALL QUANTITIES OF SUCH MOLECULAR PACKAGES HAVE BEEN MADE THE LATEST STUDY A COLLABORATION BETWEEN SRI AND DU PONT CO OPENS THE DOOR FOR MAKING LARGE AMOUNTS OF SHRINKWRAPPED MOLECULES IT IS REPORTED IN TODAY'S ISSUE OF THE JOURNAL SCIENCE SCIENTISTS ARE EXCITED ABOUT THE ADVANCE PARTLY BECAUSE ENCAPSULATION PROTECTS UNSTABLE COMPOUNDS FROM BREAKING DOWN INDEED THE METALLIC CRYSTALS CREATED IN THE SRI TEAM'S EXPERIMENT NORMALLY DECOMPOSE RAPIDLY WHEN EXPOSED TO AIR BUT DIDN'T DEGRADE FOR DAYS WHEN ENCAPSULATED THE CARBON CAGES SHOULD BE PERFECT LITTLE CRUCIBLES FOR STUDYING MATERIALS THAT ARE DIFFICULT TO HANDLE SAID DR RUOFF ENCAPSULATING IRON OR NICKEL COMPOUNDS PROMISES IMPROVED MAGNETIC MATERIALS FOR USE IN DATA STORAGE DEVICES AND OTHER APPLICATIONS HE ADDED THE MOST EXCITING ENCAPSULATION PROSPECT IS THE POSSIBILITY OF MAKING NANOWIRES SAID RICE'S DR SMALLEY SUCH ULTRATHIN WIRES LONG CYLINDRICAL CARBON CAGES PACKED WITH METALS WOULD BE EXTREMELY STRONG AND ARE EXPECTED TO BE FAR BETTER ELECTRICAL CONDUCTORS THAN COPPER THE LATEST STUDY SAID SRI'S DR RUOFF SUGGESTS THAT IT WILL BE POSSIBLE TO STUFF BUCKYTUBES WITH METALS IN ORDER TO MAKE SUCH WIRES 9301150113 930115 RULES FOR NANNIES MAY BE ONEROUS BUT THEY'RE CLEAR WORKING COUPLES MUST VERIFY CITIZENSHIP REPORT WAGES AND PAY SOCIAL SECURITY TAX BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL MANY TWOCAREER COUPLES DON'T OBEY THE COMPLICATED LAWS GOVERNING THEIR NANNIES AND OTHER DOMESTIC EMPLOYEES AND MOST OF THE REST DON'T LIKE DOING IT BUT THE BASIC RULES ARE QUITE CLEAR EMPLOYERS ARE REQUIRED TO VERIFY THE CITIZENSHIP STATUS OF THEIR WORKERS AND ANYONE PAYING AN EMPLOYEE MORE THAN 50 IN A QUARTER IS REQUIRED TO REPORT WAGES TO THE INTERNAL REVENUE SERVICE AND PAY SOCIAL SECURITY TAX THE COSTS OF NONCOMPLIANCE WITH THE TAX RULES CAN BE ENORMOUS THE PENALTY FOR FAILURE TO PAY SOCIAL SECURITY TAX CAN BE 100 OF THE TAX DUE IN ADDITION TO THE TAX ITSELF PLUS INTEREST THERE MAY BE ADDITIONAL PENALTIES FOR FAILURE TO FILE OTHER REQUIRED DOCUMENTS WITH THE SOCIAL SECURITY TAX RATE NOW AT 153 AN EMPLOYER COULD EASILY BE HIT WITH A BILL TOTALING THOUSANDS OF DOLLARS IF YOU KNOW ANYONE WHO'S BEEN CAUGHT YOU'LL NEVER TAKE THE CHANCE SAYS ALAN NADEL A PARTNER WITH ACCOUNTANTS ARTHUR ANDERSEN & CO IN NEW YORK THE PENALTIES ARE UNBELIEVABLE AND THE LONGER YOU LET IT GO THE WORSE IT GETS THERE ARE OTHER CONSIDERATIONS TOO IF YOU DON'T FILE YOU'RE BEING UNFAIR TO THE EMPLOYEE SAYS THOMAS P OCHSENSCHLAGER A WASHINGTONBASED PARTNER WITH ACCOUNTANTS GRANT THORNTON ESPECIALLY IF YOU'RE A FULLTIME EMPLOYER THEY DEPEND ON YOU WHY SHOULDN'T THEY GET SOCIAL SECURITY WHEN THEY'RE OLD INDEED EMPLOYERS SOMETIMES GET CAUGHT WHEN A FORMER WORKER APPLIES FOR SOCIAL SECURITY AT THE AGE OF 65 OR FOR UNEMPLOYMENT INSURANCE AFTER BEING FIRED THE WAGEREPORTING REQUIREMENT APPLIES TO ALL HOUSEHOLD EMPLOYEES NANNIES HOUSEKEEPERS GARDENERS AND EVEN THE ONCEAWEEK CLEANING LADY IF SHE'S PAID MORE THAN 50 IN A QUARTER BUT THE IRS HAS ESTIMATED THAT ONLY ABOUT A QUARTER OF THE APPROXIMATELY TWO MILLION HOUSEHOLD EMPLOYERS IN THE US COMPLY FOLLOWING THE RULES TAKES TIME AND COSTS MONEY TOO EMPLOYERS WHO PAY MORE THAN 1000 A QUARTER IN WAGES MUST PAY FEDERAL UNEMPLOYMENT TAX THERE USUALLY IS STATE UNEMPLOYMENT INSURANCE TOO AS WELL AS DISABILITY AND WORKERSCOMPENSATION COVERAGE THE 153 SOCIAL SECURITY TAX CAN BE SPLIT BETWEEN EMPLOYERS AND EMPLOYEES BUT MANY EMPLOYERS PAY THE WHOLE THING IF THEY DON'T THEY'LL OFTEN HAVE TO PAY THE WORKER THAT MUCH MORE TO COMPENSATE FOR THE LOST WAGES HOUSEHOLD EMPLOYEES CAN REQUEST THAT STATE AND FEDERAL INCOME TAXES BE WITHHELD FROM THEIR WAGES WHICH MEANS THE EMPLOYER HAS TO DETERMINE THE AMOUNT USING IRS AND STATE TABLES EMPLOYERS MUST FILE A QUARTERLY FEDERAL TAX RETURN FORM 942 TO REPORT WAGES PAID TO HOUSEHOLD EMPLOYEES THE SOCIAL SECURITY TAX AND INCOME TAX WITHHELD IF ANY THERE ALSO MAY BE STATE TAX RETURNS ONCE A YEAR EMPLOYERS MUST FILE A FEDERAL FORM 940 WITH THEIR FEDERAL UNEMPLOYMENT TAX PAYMENTS AND GIVE THEIR EMPLOYEES A W2 FORM EMPLOYERS ALSO HAVE TO FILE A W3 FORM WITH THE SOCIAL SECURITY ADMINISTRATION IF THE EMPLOYEE IS ELIGIBLE FOR THE EARNED INCOME CREDIT WHICH MANY LOWPAID DOMESTIC WORKERS ARE THERE ARE MORE FORMS TO FILL OUT A LOT OF PARENTS ARE JUST AS CONCERNED ABOUT THE PAPERWORK AS THE COST SAYS ALAN FRIEDMAN PRESIDENT OF A CHOICE NANNY A REFERRAL AGENCY IN NEW YORK SOME PAYROLL SERVICES WILL DO THE WORK FOR A FEE OF 8 TO 10 A WEEK SOME TAX PREPARERS WILL CALCULATE WITHHOLDING AND DO THE PAPERWORK FOR REGULAR CLIENTS BUT MANY STEER CLEAR IT'S USUALLY NOT WORTH THE COST OF HAVING A PROFESSIONAL DO IT SAYS MR OCHSENSCHLAGER IN ADDITION TO THE PAPERWORK BURDEN OF COMPLYING WITH GOVERNMENT REGULATIONS MANY EMPLOYERS DON'T REPORT WAGES PAID TO DOMESTIC WORKERS BECAUSE THEY ARE WORKING IN THE US ILLEGALLY ALTHOUGH THE IRS INSISTS THAT IT DOESN'T PASS ALONG INFORMATION TO IMMIGRATION AUTHORITIES MOST ILLEGAL ALIENS DON'T WANT ANY AGENCY OF THE GOVERNMENT TO EVEN KNOW THEY EXIST OTHER DOMESTIC WORKERS TOO ASK TO BE PAID IN CASH SO THEY DON'T HAVE TO PAY TAXES ONE NEW YORK ATTORNEY WHO WOULDN'T ALLOW HER NAME TO BE USED BECAUSE SHE EMPLOYS A PARTTIME NANNY OFF THE BOOKS SAYS THAT OF THE 10 PEOPLE SHE INTERVIEWED NOT ONE WAS WILLING TO TAKE THE JOB IF HER WAGES WERE GOING TO BE REPORTED THOSE WHO ADHERE TO THE LETTER OF THE LAW ARE OFTEN LAWYERS JUDGES AND OTHER PROFESSIONALS WHOSE CAREERS COULD BE JEOPARDIZED IF THEY WERE FOUND IN VIOLATION OF THE LAW AS A CPA I WOULDN'T WANT TO BE IN NONCOMPLIANCE WITH THE IRS SAYS MR NADEL AT ARTHUR ANDERSEN WHO PAYS SOCIAL SECURITY TAXES AND FILES QUARTERLY RETURNS FOR THE WOMAN WHO CLEANS HIS HOME FOR EMPLOYERS WHO WANT TO KNOW HOW TO COMPLY WITH THE LAW IRS PUBLICATION 926 EMPLOYMENT TAXES FOR HOUSEHOLD EMPLOYERS OUTLINES THE RULES STATE TAX DEPARTMENTS CAN PROVIDE INFORMATION ABOUT STATE REQUIREMENTS THE FIRST STEP USUALLY IS TO GET A FEDERAL EMPLOYER IDENTIFICATION NUMBER OR EIN WHICH IS REQUIRED ON MOST FORMS EMPLOYERS ALSO SHOULD GET THE WORKER'S SOCIAL SECURITY NUMBER WHICH IS NEEDED FOR THE ANNUAL W2 AND OTHER FORMS THE NANNY'S SOCIAL SECURITY NUMBER ALSO MUST BE REPORTED BY EMPLOYERS CLAIMING A CHILDCARE TAX CREDIT ON THEIR OWN TAX RETURNS OR USING PRETAX DOLLARS IN A DEPENDENT CARE ACCOUNT AT WORK TO PAY FOR CHILD CARE MANY STATES REQUIRE DISABILITY AND WORKERS COMPENSATION INSURANCE WHICH ADDS TO THE COST OF COMPLYING WITH THE LAW BUT IT CAN BE A BENEFIT TOO IF THE NANNY SLIPS AND BREAKS HER WRIST FOR EXAMPLE WHILE CARING FOR YOUR TWOYEAROLD MANY HOUSEHOLD LIABILITY POLICIES DON'T COVER FULLTIME EMPLOYEES 9301150112 930115 ABREAST OF THE MARKET TECHNOLOGY STOCK PRICES EXPLODE SENDING INDUSTRIALS TO 432 GAIN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN EXPLOSIVE RALLY IN TECHNOLOGY SHARES BOOSTED STOCK PRICES TO MODEST GAINS IN VERY HEAVY TRADING THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 432 TO 326788 BUT OTHER STOCK MARKET INDEXES POSTED BIGGER GAINS STANDARD & POOR'S 500STOCK INDEX JUMPED 291 TO 43594 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 148 TO 23960 ADVANCERS OUTNUMBERED DECLINERS 1185 TO 689 AND BIG BOARD VOLUME BALLOONED TO 280020000 SHARES FROM 245020000 WEDNESDAY ANALYSTS SAID THAT WHILE STOCKS OF PHARMACEUTICAL CONCERNS AND BIG INDUSTRIAL AND CONSUMER NONDURABLE COMPANIES CONTINUED TO LANGUISH TECHNOLOGY TRANSPORTATION AND FINANCIAL STOCKS SPRANG TO LIFE THERE'S NOT A TECHNOLOGY STOCK I KNOW OF THAT'S NOT UP DECLARED LON GORMAN COHEAD OF EQUITY TRADING AT FIRST BOSTON IT'S A QUESTION OF HOW LARGE A FRACTION MR GORMAN SAID THE EUPHORIA OVER INTEL'S FOURTHQUARTER EARNINGS SWEPT THROUGH THE OVERTHECOUNTER MARKET WEDNESDAY AND SPREAD TO THE BIG BOARD YESTERDAY AS INVESTORS STARTED BIDDING UP STOCKS OF A HOST OF OTHER TECHNOLOGY FIRMS AMONG THE BIGGEST GAINERS WERE MOTOROLA WHICH ROCKETED UP 10 7/8 OR 97 TO 123 1/4 AFTER REPORTING A FOURTHQUARTER EARNINGS GAIN OF 44 ON WEDNESDAY DIGITAL EQUIPMENT THE BIG BOARD'S MOSTACTIVE STOCK YESTERDAY CLIMBED 7 3/8 TO 42 1/4 AFTER REPORTING ITS SECONDQUARTER LOSS NARROWED TO 739 MILLION OR 57 CENTS A SHARE FROM 1552 MILLION OR 125 A SHARE A YEAR AGO DIGITAL SAID IT WAS ENCOURAGED BY THE IMPROVEMENT IN OVERALL OPERATING RESULTS BUT NOTED THAT PERFORMANCE IN SOME OF ITS OVERSEAS OPERATIONS REMAINED SOFT OTHER COMPUTER STOCKS ALSO FLOURISHED HEWLETTPACKARD SURGED 2 7/8 TO 74 1/8 TEXAS INSTRUMENTS SOARED 3 1/8 TO 56 5/8 COMPAQ RACED UP 3 1/8 TO 53 3/4 AND EVEN INTERNATIONAL BUSINESS MACHINES CHALKED UP A POINT TO 48 3/4 MR GORMAN SAID YESTERDAY'S ACTION IN THE TECHNOLOGY STOCKS MAY SUGGEST THAT THE MARKET IS READY TO CROWN A NEW LEADER THE MARKET HAS BEEN GROPING FOR NEW LEADERSHIP AND I THINK THEY MAY HAVE FOUND IT HE SAID BUT OTHER ANALYSTS WERE NOT SO CONVINCED ABOUT THE DURABILITY OF THE TECHNOLOGY STOCK RALLY DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID PORTFOLIO MANAGERS APPEAR TO BE YANKING MONEY OUT OF DRUG STOCKS WHICH HAVE FALLEN BADLY IN RECENT DAYS AND POURING IT INTO TECHNOLOGY ISSUES BUT HE WARNED THAT WHEN THE DRUG STOCKS START TO TURN AROUND YOU ARE GOING TO COOL THE TECHNOLOGY RALLY PRETTY QUICKLY ANALYSTS SAID NORTHWEST AIRLINES' MOVE TO SHARPLY CURTAIL THE MARKETS IN WHICH IT WILL OFFER DISCOUNTED PRICES EASED INVESTORS' FEARS OF AN EARLY WINTER FARE WAR THAT WOULD LIKELY SLICE INTO AIRLINE PROFITABILITY NORTHWEST'S MOVE CAME JUST A DAY AFTER THE CARRIER INSTITUTED THE CUTRATE FARES AMONG OTHER STOCKS POSTING GAINS WERE SHARES OF SECURITIES FIRMS MERRILL LYNCH ROSE 4 1/8 TO 64 1/2 PAINEWEBBER CLIMBED 1 7/8 TO 26 1/8 AND MORGAN STANLEY BOUNCED UP 3 1/4 TO 58 3/8 ANALYSTS SAID SECURITIES FIRMS ARE PROSPERING BECAUSE OF HIGHER COMMISSIONS FROM GREATER BUSINESS IN SMALL STOCKS AND INCREASED INVESTMENT BANKING REVENUE FROM A CONTINUOUSLY ACTIVE MARKET FOR INITIAL STOCK OFFERINGS JP MORGAN SKIDDED 3 1/8 TO 61 1/2 THE BIG BANK HOLDING COMPANY'S STOCK TOOK A HIT AFTER THE FIRM'S FOURTHQUARTER OPERATING EARNINGS AND NET INTEREST REVENUE FELL BELOW EXPECTATIONS COCACOLA POPPED UP 1 7/8 TO 43 1/4 THE ATLANTA BEVERAGE CONCERN SAID DECEMBER INTERNATIONAL UNIT VOLUME GREW 11 OVER THE PREVIOUS YEAR SIGNIFICANTLY OUTPACING THE COMPANY'S ESTIMATE OF 5 GROWTH NIKE JUMPED 4 1/8 TO 86 1/4 THE FOOTWEAR MAKER SAID IT COMPLETED THE ACQUISITION OF SPORTS SPECIALTIES CORP FROM OPPENHEIMER PALMIERI WORKOUT FUND LP TERMS WEREN'T DISCLOSED MAGNETEK ADDED 1 7/8 TO 22 3/4 THE COMPANY SAID IT EXPECTS A 13 INCREASE IN SECONDQUARTER OPERATING PROFIT TO 28 MILLION FROM 248 MILLION A YEAR AGO HARMAN INTERNATIONAL ROSE 1 7/8 TO 16 3/4 THE AUDIO AND VIDEO SYSTEMS MAKER SAID IT IS COMFORTABLE WITH ANALYSTS' VIEWS OF EARNINGS OF 30 CENTS A SHARE FOR THE SECOND QUARTER COMPARED WITH 17 CENTS A YEAR EARLIER VALERO ENERGY SLIPPED 1 TO 22 7/8 THE COMPANY SAID IT EXPECTS FOURTHQUARTER AND FULLYEAR EARNINGS THAT ARE SIGNIFICANTLY LOWER THAN THE 53 CENTS A SHARE AND 228 RESPECTIVELY A YEAR AGO ROWAN LOST 3/8 TO 7 1/4 THE COMPANY REPORTED A FOURTHQUARTER LOSS OF 32 CENTS A SHARE COMPARED WITH AN OPERATING LOSS OF 16 CENTS IN THE YEARAGO PERIOD ROHR GAINED 1 TO 13 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT THE CHULA VISTA CALIF AIRCRAFTPARTS MAKER SEEMS A LIKELY CANDIDATE FOR ABSORPTION BY A LARGER COMPANY IN THE CONSOLIDATING AEROSPACE INDUSTRY EASTMAN KODAK CONTINUED TO BUILD ON ITS GAINS THE ROCHESTER NY PHOTOGRAPHIC CONCERN ROSE 1 3/8 TO 49 1/8 SINCE THE START OF THE WEEK WHEN THE COMPANY SAID IT HAD APPOINTED A HONEYWELL INC TURNAROUND ARTIST AS CHIEF FINANCIAL OFFICER KODAK HAS GAINED MORE THAN SEVEN POINTS MICRON TECHNOLOGY SWELLED 2 1/4 TO 23 MONTGOMERY SECURITIES ANALYST THOMAS THORNHILL III SAID HE THINKS THE STOCK COULD MOVE TO THE MID TO HIGH 20S BECAUSE OF AN EXPECTED TIGHTENING IN SUPPLIES OF MEMORY CHIPS MICRON MAKES DYNAMIC RANDOMACCESS MEMORY CHIPS WHICH ARE USED IN MOST PERSONAL COMPUTERS MR THORNHILL SAID MICRON IS A GOOD WAY TO PLAY A TIGHTER SUPPLY PICTURE BECAUSE THE CHIPS MAKE UP A SIGNIFICANT PORTION OF ITS REVENUE AND EARNINGS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 250 TO 40106 VOLUME WAS 19436000 UP FROM 14891000 WEDNESDAY THERE WERE 341 ADVANCERS AND 223 DECLINERS 9301150111 930115 S&P AGAIN WEIGHS DOWNGRADING DEBT OF UAL DELTA AMR AND THEIR AIRLINES BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP PLACED THE DEBT OF THE THREE LARGEST US AIRLINES AND THEIR PARENTS UNDER REVIEW FOR YET ANOTHER POSSIBLE DOWNGRADE A MOVE THAT WOULD PUT DELTA AIR LINES AND UNITED AIRLINES AT SPECULATIVE GRADE STATUS AND AMERICAN AIRLINES JUST A NOTCH ABOVE ABOUT 195 BILLION OF SECURITIES IS AFFECTED THE RATING CONCERN'S ACTION PUTTING ALL THREE CARRIERS ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS IS ANOTHER SIGN OF CONTINUING FINANCIAL DECAY IN AN INDUSTRY THAT FOR YEARS HAS BEEN BUFFETED BY ECONOMIC WOES PHILIP BAGGALEY A DIRECTOR OF S&P'S CORPORATE FINANCE DEPARTMENT AND ITS AIRLINE ANALYST SAID SUCH PROBLEMS WILL PERSIST GIVEN THE INDUSTRY'S OVERCAPACITY THE SURVIVAL OF THREE CARRIERS IN BANKRUPTCY COURT AND FOREIGN INVESTMENT IN SECONDTIER US CARRIERS IN ADDITION ANY IMPROVEMENT IN THE WEAK DOMESTIC ECONOMY IS LIKELY TO BE OFFSET BY DEEPER RECESSIONS IN EUROPE AND JAPAN KEY TRAVEL MARKETS FOR THE AIRLINES THAT LEAVES CARRIERS WITH ONLY A FEW WAYS TO IMPROVE THEIR FORTUNES ALL OF THEM UNPALATABLE OR UNLIKELY YOU COULD LOSE SOME WEAK AIRLINES BUT NO ONE WANTS TO BE THE EXECUTIONER OR YOU COULD PRAY FOR AN EXPLOSIVE RECOVERY AND NO ONE IS COUNTING ON THAT MR BAGGALEY SAID OR YOU COULD TRY TO CUT COSTS SUBSTANTIALLY WHICH MEANS LABOR COSTS AND THAT MEANS UNPLEASANT TALKS WITH EMPLOYEES S&P HAS BEEN DOWNGRADING AIRLINES' CREDIT FOR THE PAST YEAR LAST SPRING AFTER AMR CORP'S AMERICAN AIRLINES UNIT BEGAN ITS NOWFAILED INITIATIVE TO SIMPLIFY FARES S&P BEGAN A REVIEW THAT LED TO DOWNGRADES ON SIX OF THE SEVEN MAJOR AIRLINES THAT AREN'T IN BANKRUPTCYLAW PROCEEDINGS AT THE SAME TIME S&P HAS BEEN TAKING A HARD LOOK AT INDIVIDUAL CARRIERS YESTERDAY'S MOVE MEANS THAT DELTA FOR EXAMPLE COULD FACE ITS THIRD DOWNGRADE IN LESS THAN A YEAR ONLY LAST MONTH DELTA WAS DOWNGRADED TO ITS CURRENT LEVEL FOR MANY OF THE SAME REASONS BEING CONSIDERED THIS TIME CURRENTLY ITS EQUIPMENT TRUST CERTIFICATES ARE RATED TRIPLEB ITS SENIOR DEBT AT TRIPLEBMINUS ITS PREFERRED STOCK AT DOUBLEBPLUS AND ITS COMMERCIAL PAPER AT SINGLEA3 A DELTA SPOKESMAN SAID THE AIRLINE HAS TAKEN VIGOROUS STEPS TO CONTROL COSTS AND THINKS ITS LONGTERM PROSPECTS ARE SOUND WE FEEL VERY OPTIMISTIC HE SAID WE HAVE MAINTAINED OUR INVESTMENTGRADE RATING AND REMAIN OPTIMISTIC THAT WILL CONTINUE TO BE THE CASE AS FOR AMR ITS SENIOR DEBT CURRENTLY IS RATED TRIPLEB AND ITS SUBORDINATED DEBT TRIPLE BMINUS AMERICAN'S EQUIPMENT TRUST CERTIFICATES ARE RATED TRIPLE BPLUS ITS SENIOR DEBT TRIPLEB AND ITS COMMERCIAL PAPER SINGLEA2 AN AMR SPOKESMAN SAID THE COMPANY HAS BEEN AGGRESSIVELY TRYING TO CUT COSTS AND KEEP OUR COSTS DOWN AND IMPROVE REVENUES SO WE DO NOT FACE A FURTHER DOWNGRADE AT UAL CORP PARENT OF UNITED A SPOKESMAN DECLINED TO COMMENT UAL'S SENIOR DEBT IS RATED TRIPLEBMINUS AND ITS SUBORDINATED DEBT DOUBLEBPLUS AT THE UNITED UNIT CURRENT RATINGS PUT EQUIPMENT TRUST CERTIFICATES AT TRIPLEB SENIOR DEBT AT TRIPLEBMINUS AND SUBORDINATED DEBT AT DOUBLEBPLUS THE THREE COMPANIES AREN'T ALONE ON S&P'S CREDITWATCH WINGS HOLDINGS INC'S NORTHWEST AIRLINES HAS BEEN UNDER REVIEW SINCE NOVEMBER BECAUSE OF LIQUIDITY PROBLEMS AND ALASKA AIR GROUP AND ITS ALASKA AIRLINES UNIT WERE PUT ON CREDITWATCH LAST WEEK BECAUSE OF TOUGH COMPETITION ON ROUTES 9301150109 930115 ASSETS IN MONEY MARKET MUTUAL FUNDS ROSE IN WEEK ENDED JAN 13 WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 1905 BILLION TO 59429 BILLION FROM 57524 BILLION FOR THE WEEK ENDED WEDNESDAY JAN 13 THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 610 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 178 BILLION TO 38638 BILLION THE TRADE GROUP SAID ASSETS OF 379 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 687 MILLION TO 30291 BILLION ASSETS OF 231 RETAIL TAXEXEMPT FUNDS ROSE BY 185 BILLION TO 8347 BILLION ASSETS OF THE 275 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 1727 BILLION TO 20790 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 224 TAXABLE MONEY MARKET FUNDS ROSE BY 1721 BILLION TO 18539 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 532 MILLION TO 2252 BILLION 9301150108 930115 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF THIS MAKER OF COMPUTER DISK DRIVES SAID IT NAMED A TRAVIS WHITE 47 TO A NEWLY CREATED EXECUTIVE VICE PRESIDENT POST MR WHITE WILL ALSO BE GENERAL MANAGER OF THE MICROCOMPUTER PRODUCTS GROUP SUCCEEDING SCOTT MERCER THE COMPANY'S CHIEF FINANCIAL OFFICER WHO HAD ALSO FILLED THE GENERAL MANAGER POST ON AN INTERIM BASIS THE MOVE IS EFFECTIVE FEB 1 MR WHITE IS CURRENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF LSI LOGIC CANADA LTD A UNIT OF LSI LOGIC CORP 9301150107 930115 WHO'S NEWS JWP INC JWP INC RYE BROOK NY STEPHEN H MEYERS WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OF FINANCE AT THIS TECHNICAL SERVICES CONCERN AND BERNARD J WHITE WAS NAMED CHIEF FINANCIAL OFFICER OF THE COMPANY'S JWP INFORMATION SERVICES UNIT MR MEYERS 50 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT SPRAGUE TECHNOLOGIES MR WHITE 48 WHO HAD BEEN VICE PRESIDENT AND CONTROLLER AT SMITH CORONA CORP SUCCEEDS JOHN MCQUADE MR MCQUADE 52 WILL SEEK OTHER OPPORTUNITIES IN AND OUTSIDE THE COMPANY 9301150105 930112 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 9301150104 930115 CINCINNATI BELL INC CINCINNATI CINCINNATI BELL INC'S INFORMATION SYSTEMS UNIT SAID IT SIGNED A FIVEYEAR CONTRACT VALUED AT MORE THAN 40 MILLION WITH SWISS PTT TELECOM FOR IMPROVEMENTS TO THE SWISS NATIONAL TELEPHONE NETWORK ADMINISTRATION CINCINNATI BELL SAID IT WILL START WORK THIS MONTH ON THE PROJECT WHICH WILL INSTALL A COMPUTERIZED MANAGEMENT SYSTEM OF SWITZERLAND'S NATIONAL VOICE AND DATA TRANSMISSION NETWORK REPLACING A CURRENT MIX OF COMPUTERIZED AND MANUAL SYSTEMS AS THE PRIME CONTRACTOR CINCINNATI BELL SAID IT WILL WORK WITH GFAL A SWISS SOFTWARE FIRM THE COMPANY SAID THE PROJECT WILL BEGIN THIS MONTH AND WILL BE COMPLETED BY 1995 THE SYSTEM IS TO BE INTRODUCED TO ALL SWISS PTT TELECOM LOCATIONS IN 1996 AND 1997 9301150103 930114 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 9301150102 930115 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/4 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 312 60 TO 89 DAYS 315 90 TO 119 DAYS 320 120 TO 149 DAYS 323 150 TO 179 DAYS 325 180 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 318 30 DAYS 321 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 278 ONE MONTH 282 TWO MONTHS 285 THREE MONTHS 295 SIX MONTHS 321 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 311 90 DAYS 316 120 DAYS 319 150 DAYS 321 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 15/16 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 7 GERMANY 950 JAPAN 450 SWITZERLAND 788 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 782 60 DAYS 790 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 780 60 DAYS 789 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301150101 930115 TECHNOLOGY VESTAR TO PROVIDE DRUG FOR AIDS CONDITION FREE TO SOME PATIENTS SAN DIMAS CALIF VESTAR INC SAID IT WILL PROVIDE FOR NO CHARGE LIMITED QUANTITIES OF ITS EXPERIMENTAL DAUNOXOME DRUG TO CERTAIN AIDS PATIENTS WITH ADVANCED KARPOSI'S SARCOMA THE DRUG MADE AT THE PHARMACEUTICAL CONCERN'S PLANT HERE WILL BE AVAILABLE INITIALLY TO ABOUT 100 PATIENTS IN NEW YORK CITY THE FOOD AND DRUG ADMINISTRATION HAS REVIEWED THE PLAN AND GIVEN PERMISSION TO PROCEED WITH IT VESTAR OFFICIALS SAID PATIENTS WHO RECEIVE DAUNOXOME WILL BE MONITORED BY QUALIFIED PHYSICIANS SAID MICHAEL E ROSS EXECUTIVE VICE PRESIDENT OF MEDICAL AND REGULATORY AFFAIRS THERE IS ENOUGH PROMISE THAT THE DRUG MIGHT OFFER SOME IMPORTANT BENEFIT THOUGH NOT A PROVEN BENEFIT HE SAID DAUNOXOME IS VESTAR'S FORMULATION OF THE ANTICANCER AGENT DAUNORUBICIN IN CLINICAL TRIALS OF DAUNOXOME TO DATE 60 OF ABOUT 150 PATIENTS WITH ADVANCED KARPOSI'S SARCOMA HAVE HAD A PARTIAL RESPONSE AND MANY OTHERS HAVE HAD THEIR DISEASE ARRESTED VESTAR SAID THE COMPANY HOPES TO FILE A NEW DRUG APPLICATION WITH THE FDA LATER THIS YEAR AIDS ACTIVISTS HAILED VESTAR'S MOVE WE'VE KNOWN ABOUT THE DRUG SINCE THE AIDS CONFERENCE IN AMSTERDAM LAST SUMMER SAID MARK MILANO A MEMBER OF ACT UP/NEW YORK AN AIDS ORGANIZATION WE CONTACTED THE COMPANY AND WERE ABLE TO NEGOTIATE WITH THE COMPANY AND THE FDA HE SAID 9301150100 930115 INTERNATIONAL US TO BUY BACK SOME OF MISSILES HELD BY AFGHANS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BUSH ADMINISTRATION IS EXPECTED TO WIN APPROVAL OF AN ESTIMATED 10 MILLION TRANSFER OF INTELLIGENCE FUNDS TO BUY BACK AMERICANMADE GROUNDTOAIR STINGER MISSILES FROM AFGHAN GUERRILLA FORCES EVEN WITH THE PLANNED PURCHASES HOWEVER INTELLIGENCE OFFICIALS CAUTION THAT HUNDREDS OF THE SOPHISTICATED WEAPONS WILL REMAIN IN THE HANDS OF THE AFGHAN FACTIONS WHO ARE CHARGING FAR MORE THAN THE MISSILES' ORIGINAL COST THIS PREMIUM HAD PROVOKED RESISTANCE FROM INFLUENTIAL COMMITTEE CHAIRMEN WHO OVERSEE THE INTELLIGENCE BUDGET AND WHO MUST SIGN OFF ON THE TRANSFER BUT IN RECENT WEEKS THE ADMINISTRATION AND ITS ALLIES IN THE HOUSE HAVE WORN DOWN THIS OPPOSITION AND SUCCESSFULLY ARGUED THAT THE ADDED COST IS LESS THAN THE RISK IF THE WEAPONS ARE SOLD TO TERRORISTS OR HOSTILE GOVERNMENTS EVEN IF THIS ENDS UP COSTING 100 MILLION SAID ONE PROPONENT THAT'S PEANUTS COMPARED WITH THE COST OF ONE CIVILIAN 747 AIRLINER BEING SHOT DOWN HOWEVER THERE ISN'T ANY CURRENT PLAN TO BUY BACK MORE THAN 10 MILLION OF THE MISSILES AND THUS HUNDREDS WILL REMAIN AVAILABLE IN AFGHANISTAN STINGER MISSILES WERE FIRST PROVIDED BY THE CENTRAL INTELLIGENCE AGENCY IN THE MIDTOLATE 1980S AND ENABLED THE INSURGENTS TO COUNTER THE THREAT OF SOVIET HELICOPTERS SINCE THE SOVIET WITHDRAWAL THE SAME WEAPONS HAVE BECOME A RICH ASSET FOR RIVAL COMMANDERS AND THE CIA USED CONTINGENCY FUNDS TO BEGIN BUYING BACK THE MISSILES LAST YEAR TO REDUCE THE THREAT OF PROLIFERATION THE FIRST PREFERENCE FOR THE US WOULD HAVE BEEN TO TRADE HUMANITARIAN AID SUCH AS MEDICAL SUPPLIES OR FOOD BUT THE AFGHAN LEADERS HAVE APPARENTLY DECLINED SUCH OFFERS GOVERNMENT OFFICIALS ACKNOWLEDGE THAT THE CIA HAS HAD TO PAY AS MUCH AS TWICE THE ORIGINAL COST OF THE WEAPONS AND THE BUYBACKS ARE SAID TO RUN AROUND 100000 PER STINGER THIS IS STILL LESS THAN THE AMOUNT THE WEAPONS CAN FETCH ON THE OPEN ARMS MARKET ACCORDING TO INTELLIGENCE OFFICIALS BUT CRITICS ARGUE THAT THE US IS ENGAGING IN A BIDDING WAR THAT HELPS TO FINANCE THE WARRING FORCES AND WILL ABSORB ONLY A PORTION OF THE TOTAL STOCKS AFGHAN GUERRILLAS OUSTED THE MOSCOWBACKED GOVERNMENT IN KABUL LAST SPRING BUT BLOODY WARFARE CONTINUES AMONG THE MAJOR FACTIONS WHICH RETAIN ARSENALS FROM THE WAR KABUL AND ITS NEW GOVERNMENT HAVE BEEN SHELLED BY FORCES ALIGNED WITH ONE OF THE MOST RADICAL FACTIONS LED BY GULBUDDIN HEKMATYAR AND IN ITS DESIRE TO GET BACK THE MISSILES THE CIA HAS BEEN RELUCTANT TO ATTACH RESTRICTIONS THAT WOULD PREVENT ANY AFGHAN FACTION INCLUDING HEKMATYAR AND HIS ALLIES FROM TAKING ADVANTAGE OF THE BUYBACK PROGRAM THE ARMS PROFITS CONTRAST WITH THE DIFFICULTIES IN GETTING AID TO AFGHANISTAN'S CIVILIAN POPULATION UNITED NATIONS OFFICIALS IN SWITZERLAND SAID YESTERDAY THAT IT HAS RAISED LESS THAN 25 OF THE 176 MILLION REQUESTED FROM MEMBER GOVERNMENTS IN A WINTER APPEAL FOR AFGHANISTAN THE US WHICH SPENT BILLIONS IN COVERT AID DURING THE WAR HAS CONTINUED A BILATERAL PROGRAM OF ABOUT 50 MILLION ANNUALLY IN MEDICAL SUPPLIES AND TEXTBOOKS FOR EXAMPLE A RECENT REPORT BY THE NONPROFIT US COMMITTEE FOR REFUGEES ARGUED THAT WASHINGTON MUST DO SIGNIFICANTLY MORE TO END THE TURMOIL 9301150099 930115 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JAN 8 ACCOUNTED FOR 88 OR AN AVERAGE 23 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 75 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 32 INVOLVED STOCKINDEX ARBITRAGE UP FROM 22 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 307 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 536 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 157 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS UBS SECURITIES SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE FIRST BOSTON NOMURA SECURITIES AND MORGAN STANELY DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9301150098 930115 MAJOR BANKS POST STRONG NET FOR 4TH QUARTER BANK OF NEW YORK UP 58 FIRST FIDELITY RISES 55 MORGAN'S STOCK FALLS 5 BY STEVEN LIPIN AND MARTHA BRANNIGAN STAFF REPORTERS OF THE WALL STREET JOURNAL SEVERAL MAJOR BANKS POSTED STRONG FOURTHQUARTER EARNINGS FUELED BY ROBUST INTEREST RATE MARGINS AND LOWER CHARGES FOR PROBLEM LOANS JP MORGAN & CO REPORTED RECORD ANNUAL EARNINGS BUT ITS STOCK NOSEDIVED NEARLY 5 BECAUSE WALL STREET EXPECTED RESULTS TO BE EVEN BETTER EARNINGS ROSE 11 AT JP MORGAN & CO 58 AT BANK OF NEW YORK CO 55 AT FIRST FIDELITY BANCORP AND MORE THAN DOUBLED AT NATIONAL CITY CORP EARNINGS WERE ALSO STRONG AT FIRST CHICAGO CORP BARNETT BANKS INC WACHOVIA CORP AND SOCIETY CORP FULLYEAR RESULTS WERE UP BY DOUBLE DIGITS VIRTUALLY ACROSS THE BOARD REFLECTING THE RECORD YEAR THE INDUSTRY IS POISED TO REPORT WITH INTEREST RATE MARGINS STILL WIDE BETWEEN RATES PAID TO DEPOSITORS AND YIELDS ON LOANS AND OTHER EARNING ASSETS THE QUARTER'S RESULTS ARE A CONTINUATION OF LAST YEAR'S STRONG SHOWINGS EXPENSES ARE DOWN AS PROVISIONS FOR LOAN LOSSES ABATE AND OPERATING EXPENSES ARE TIGHTENED GENERALLY THE PATTERN HAS BEEN A LOT OF MORE OF THE SAME SAID JUDAH KRAUSHAAR BANKING ANALYST AT MERRILL LYNCH & CO WE'VE SEEN GOOD RATES OF REDUCTIONS IN NONPERFORMING ASSETS MOST BANKS ARE DISCIPLINED ON EXPENSE MANAGEMENT AND THERE'S A LITTLE SIGN OF A PICKUP IN LOAN GROWTH ALTHOUGH IT'S SKEWED TOWARD THE CONSUMER SIDE SOME BANKS SUCH AS BANK OF NEW YORK FIRST FIDELITY AND FIRST CHICAGO ARE REAPING THE BENEFITS OF THE GROWTH IN HIGHYIELDING CREDIT CARD BALANCES IN THE FOURTH QUARTER AND HIGHER CONSUMER BANKING FEES BUT WHILE NET INTEREST MARGINS ARE STILL FAT BY HISTORICAL STANDARDS THEY ARE SHOWING SIGNS OF NARROWING HIGHYIELDING ASSETS ARE MATURING WITHOUT SIMILAR YIELDS IN WHICH TO REINVEST SQUEEZING THE DIFFERENCE BETWEEN BORROWING AND LENDING RATES BOTH SOCIETY CORP AND NATIONAL CITY ARE EXPERIENCING A NARROWING OF NET INTEREST MARGINS THE INDUSTRY IS BEGINNING TO REACH A PLATEAU ON MARGINS MR KRAUSHAAR SAID WHILE STOCKS OF MOST BANKING COMPANIES ROSE ON THE EARNINGS RESULTS SHARES OF JP MORGAN TUMBLED TO 6150 DOWN 3125 ON THE NEW YORK STOCK EXCHANGE FOURTHQUARTER EARNINGS OF 298 MILLION WERE SLIGHTLY LESS THAN EXPECTED BECAUSE OF A DECLINE IN TRADING REVENUES SHARES OF BANKERS TRUST NEW YORK CORP WHICH ALSO GARNERS A SIGNIFICANT SHARE OF ITS EARNINGS FROM TRADING ACTIVITIES ALSO FELL ENDING AT 67 DOWN 1125 ON THE BIG BOARD FIRST CHICAGO'S STOCK JUMPED TO 39 UP 150 IN BIG BOARD TRADING BANK OF NEW YORK'S STOCK EDGED UP 375 CENTS TO 55125 ON THE NEW YORK STOCK EXCHANGE NATIONAL CITY'S SHARES CLIMBED TO 4975 UP 125 CENTS ON THE BIG BOARD WHILE SOCIETY'S SHARES SLIPPED TO 64 DOWN 125 CENTS ON THE SAME EXCHANGE FIRST FIDELITY STOCK ADVANCED TO 44875 UP 75 CENTS AND BARNETT'S ROSE TO 41875 UP 875 CENTS WHILE WACHOVIA'S STOCK EASED TO 66 DOWN 25 CENTS ON THE BIG BOARD THE NATION'S FIFTHLARGEST BANKING COMPANY WITH 103 BILLION IN ASSETS REPORTED RECORD EARNINGS EXCEEDING 13 BILLION FOR LAST YEAR CORPORATE FINANCE REVENUE ROSE 32 TO 439 MILLION WHILE FEES FOR ARRANGING CREDIT LINES ROSE 34 TO 214 MILLION BUT THE FOURTHQUARTER RESULTS WERE LESS THAN WALL STREET EXPECTATIONS REFLECTING AN 18 FALLOFF IN TRADING REVENUE FROM ONE YEAR AGO TO 200 MILLION THE COMPANY CONTINUES TO SUSTAIN LOSSES FROM ITS HOLDINGS OF VOLATILE MORTGAGEBACKED SECURITIES ALSO TRADING REVENUE TYPICALLY FALLS OFF AT YEAR END AS A RESULT OF SEASONAL FACTORS WHICH REDUCED TOTAL ASSETS BY 15 BILLION ALSO NET INTEREST REVENUE FELL 167 IN THE QUARTER TO 412 MILLION THE COMPANY ATTRIBUTED THE DECLINE TO SALE OF INVESTMENT SECURITIES AND HIGHYIELDING ASSETS THAT MATURED BUT COULDN'T BE REINVESTED AT SIMILAR RATES BUT MOST OF ITS OTHER BUSINESSES GREW STRONGLY SUCH AS CORPORATE FINANCE INVESTMENT MANAGEMENT AND SYNDICATIONS NONPERFORMING LOANS FELL 67 MILLION WHILE ITS QUARTERLY PROVISION FOR LOAN LOSSES WAS MAINTAINED AT A TOKEN 10 MILLION OPERATING EXPENSES ROSE 15 FOR THE YEAR AND 19 IN THE FOURTH QUARTER BECAUSE OF HIGHER PERSONNEL COSTS ACCRUALS FOR INCENTIVE COMPENSATION AND INCREASED COSTS FOR INVESTMENT IN TECHNOLOGY WHILE CHICAGO'S BIGGEST BANKING COMPANY REPORTED QUARTERLY EARNINGS OF 1366 MILLION OR 153 CENTS A SHARE EXCLUDING NONRECURRING ITEMS THE COMPANY WAS ESTIMATED TO HAVE EARNED AROUND 1 A SHARE WHICH WAS STILL SLIGHTLY ABOVE ANALYSTS' EXPECTATIONS FOR THE FULL YEAR THE PROFIT OF 935 MILLION WAS DEPRESSED BY A SPECIAL 625 MILLION CHARGE IN THE THIRD QUARTER TO WRITE DOWN THE VALUE OF 2 BILLION IN PROBLEM REAL ESTATE LOANS FOR THE FOURTH QUARTER HOWEVER EARNINGS WERE QUITE STRONG BOLSTERED BY A 91 MILLION RISE IN THE COMPANY'S 11 BILLION VENTURE CAPITAL PORTFOLIO IN ADDITION CREDIT CARD FEES ROSE 346 TO 1532 MILLION HELPED BY INCREASED BUSINESS AND HIGHER FEES ON CERTAIN PRODUCTS CREDIT CARD RECEIVABLES ROSE 15 LAST YEAR FROM THE YEAR EARLIER AND 9 OR BY 700 MILLION IN THE FOURTH QUARTER FROM THE THIRD QUARTER HELPING NET INTEREST INCOME RISE 21 TO 3262 MILLION AND AIDING THE INCREASE IN THE BANKING COMPANY'S NET INTEREST MARGIN GIVEN THE LARGE CHARGE IN THE THIRD QUARTER THE COMPANY'S PROVISION FOR LOAN LOSSES TUMBLED TO 815 MILLION AT YEAR END FROM 180 MILLION ONE YEAR AGO EXCLUDING THE 2 BILLION PORTFOLIO NONPERFORMING ASSETS FELL 20 FROM THE THIRD QUARTER AS EXPECTED THE COMPANY DISCLOSED THAT IT SOLD ROUGHLY 190 MILLION OF REAL ESTATE ASSETS AS PART OF ITS EFFORTS TO SHED THE 2 BILLION PORTFOLIO STRONG REVENUES FROM CREDIT CARDS AND PROCESSING BUSINESSES CONTRIBUTED TO BETTERTHANEXPECTED YEAREND EARNINGS OF 104 MILLION OR 114 A SHARE AFTER TAKING INTO EFFECT THE SALE OF NEW SHARES AT THE NATION'S 15THLARGEST BANK IT'S ANOTHER FABULOUS RELEASE SAID MR KRAUSHAAR OF MERRILL LYNCH NONPERFORMING ASSETS FELL BY 96 MILLION TO 931 MILLION THE SIXTH CONSECUTIVE QUARTERLY DECLINE THE PROVISION FOR FUTURE LOAN LOSSES FELL SLIGHTLY TO 93 MILLION FROM 95 MILLION IN THE THIRD QUARTER AND 135 MILLION ONE YEAR AGO NET INTEREST INCOME ROSE 1477 TO 342 MILLION WHILE THE NET INTEREST MARGIN BETWEEN BORROWING AND LENDING RATES WIDENED TO 293 PERCENTAGE POINTS IN THE QUARTER UP FROM 288 PERCENTAGE POINTS IN THE THIRD QUARTER AND 243 ONE YEAR AGO CREDIT CARD BALANCES ROSE 11 BILLION TO 49 BILLION THEY'RE RUNNING OFF LOWMARGIN WHOLESALE LOANS AND PICKING UP HIGHMARGIN CREDIT CARDS SAID MR KRAUSHAAR TOTAL NONINTEREST INCOME FELL 6 TO 278 MILLION HURT BY A 31 MILLION WRITEDOWN OF ITS INVESTMENT IN NORTHEAST BANCORP INC WHICH WAS RECENTLY SOLD TO FIRST FIDELITY BUT FEES FOR SERVICE CHARGES ROSE 6 TO 116 MILLION WHILE OTHER PROCESSING FEES ROSE 126 TO 98 MILLION BARNETT BANKS EXCEEDING MOST ANALYSTS' ESTIMATES REPORTED IMPROVED OPERATING RESULTS BASED ON CONTINUING IMPROVEMENT IN CREDIT QUALITY A STRONGER NET INTEREST MARGIN AND SOLID GROWTH IN NONINTEREST INCOME THE JACKSONVILLE FLA BANK HOLDING COMPANY IS SEEING ACCELERATED IMPROVEMENT IN ASSET QUALITY AND CAN EXPECT CONTINUED IMPROVEMENT DURING 1993 CHARLES NEWMAN ITS CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW MR NEWMAN SAID THE BANK IS SEEING LOAN DEMAND PICK UP AS CONSUMER CONFIDENCE IN FLORIDA SHOWS SIGNS OF IMPROVING NONPERFORMING ASSETS FELL 129 MILLION IN THE LATEST QUARTER TO 8433 MILLION THEIR LOWEST LEVEL SINCE 1990 AND THE BANK SHED 84 MILLION IN OTHER REAL ESTATE OWNED IN THE FOURTH QUARTER THE FOURTH QUARTER OF 1992 INCLUDED AN AFTERTAX RESTRUCTURING CHARGE OF 674 MILLION OR 69 CENTS A SHARE FOR ITS ACQUISITION OF FIRST FLORIDA BANKS INC WHICH WAS COMPLETED IN DECEMBER 1992 AND ALL RESULTS REFLECT THE COMBINED OPERATIONS OF THE TWO COMPANIES WACHOVIA BASED IN WINSTONSALEM NC TURNED IN A STRONG FOURTH QUARTER CITING INCREASES IN NET INTEREST INCOME AND NONINTEREST INCOME AND A SHARPLY LOWER LOANLOSS PROVISION THE CONSISTENTLY HIGHPERFORMING BANK HOLDING COMPANY SAID COMPARISONS WITH 1991 AREN'T MEANINGFUL SINCE IT POSTED AN AFTERTAX RESTRUCTURING CHARGE OF 94 MILLION OR 110 A SHARE FOR THE FOURTH QUARTER OF 1991 RELATED TO ITS ACQUISITION OF SOUTH CAROLINA NATIONAL CORP REPORTING ITS ONLY QUARTERLY LOSS EVER JOHN MCCOY WACHOVIA'S CHIEF FINANCIAL OFFICER SAID THE COMPANY EXPECTS TO SEE STEADY GROWTH IN 1993 WE HAD A VERY GOOD YEAR IN 1992 AND GOING INTO 1993 WE'RE IN A GOOD POSITION MR MCCOY SAID FIRST FIDELITY'S NET INCOME SURGED REFLECTING THE BENEFITS OF FALLING INTEREST RATES AND A 34 DROP IN PROVISIONS FOR CREDIT LOSSES TO 52 MILLION FROM THE YEAREARLIER 79 MILLION THE 315 BILLION REGIONAL BANKING COMPANY WHICH MAINLY OPERATES IN NEW JERSEY AND PENNSYLVANIA CONTINUES TO AGGRESSIVELY BOOST FEES AND OTHER CHARGES WHILE CUTTING COSTS SERVICE CHARGES ON DEPOSIT ACCOUNTS FOR INSTANCE ROSE 37 TO 382 MILLION FROM 279 MILLION A YEAR EARLIER NET INTEREST INCOME ROSE 20 TO 3242 MILLION FROM 2712 MILLION FIRST FIDELITY SAID NONPERFORMING ASSETS DECLINED 555 MILLION IN THE FOURTH QUARTER TO 6957 MILLION AND ARE OFF SHARPLY FROM 9289 MILLION A YEAR AGO THE COMPANY ACHIEVED THE DECLINE DESPITE THE ADDITION OF 19 MILLION IN NONPERFORMING CONSUMER LOANS ACQUIRED AS PART OF AN ACQUISITION NET LOAN CHARGEOFFS IN THE QUARTER WERE 596 MILLION DOWN FROM 772 MILLION A YEAR EARLIER NATIONAL CITY POSTED HIGHER FOURTHQUARTER AND YEAREND EARNINGS CITING IMPROVED ASSET QUALITY RESULTING IN A LOWER LOANLOSS PROVISION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS THE BANK'S NET INTEREST MARGIN DECLINED IN THE QUARTER TO 468 PERCENTAGE POINTS FROM 471 IN THE THIRD QUARTER BUT WAS UP FROM 451 IN THE YEAREARLIER QUARTER NONPERFORMING LOANS WERE 367 MILLION IN THE FOURTH QUARTER COMPARED WITH 442 MILLION IN THE THIRD AND 539 MILLION A YEAR EARLIER ITS PROVISION FOR CREDIT LOSSES FELL TO 21 MILLION FROM 278 MILLION IN THE THIRD QUARTER AND 72 MILLION A YEAR AGO THEIR CREDIT QUALITY CONTINUES TO IMPROVE THEIR BALANCE SHEET CONTINUES TO GET STRONGER AND THEIR RESERVE POSITION IS VERY STRONG SAID HENRY C DICKSON OF KEMPER SECURITIES THEY'RE MAKING A LOT OF PROGRESS RIGHT NOW THE RESULTS IN '93 WILL BE GOOD SOCIETY POSTED HIGHER FOURTHQUARTER EARNINGS COMPARED WITH THE YEARAGO PERIOD BUT SOME ANALYSTS WITH HIGHER EXPECTATIONS WERE SLIGHTLY DISAPPOINTED THE CLEVELAND BANK ALSO REPORTED LOWER NET INTEREST MARGIN COMPARED WITH THE THIRD QUARTER EXCLUDING LAST YEAR'S CHARGES NET INCOME IN THE 1992 FOURTH QUARTER WAS UP 87 OVER THE YEARAGO PERIOD SOCIETY SAID THEIR MARGIN CAME DOWN BUT THEY ADDED A LOT OF EARNING ASSETS BY INCREASING THE SECURITIES PORTFOLIO AND THEY HAD SOME LOAN GROWTH SAID MR DICKSON A SOCIETY SPOKESMAN SAID MARGINS DECLINED BECAUSE WE SAW AN INFLUX OF DEMAND DEPOSITS AND SINCE WE HAD THE CAPACITY TO DO SOMETHING WE BOUGHT SECURITIES THE IMPORTANT THING IS OUR NET INTEREST INCOME WAS UP 94 MILLION FROM THE THIRD QUARTER SOCIETY'S NONPERFORMING ASSETS IN THE FOURTH QUARTER DECLINED 773 MILLION OR 13 FROM THE THIRD QUARTER AND 1301 MILLION OR 21 FROM 1991 9301150097 930115 TIME WARNER FILES A SHELF REGISTRATION FOR 2 BILLION OF DEBT NEW YORK TIME WARNER INC SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A 2 BILLION DEBT ISSUE THE ENTERTAINMENT AND PUBLISHING CONCERN SAID PROCEEDS RAISED THROUGH PERIODIC SALE OF THE SECURITIES WILL BE USED TO REPURCHASE OR REDEEM ITS SERIES C AND SERIES D PREFERRED STOCK OR OTHER DEBT THE TWO PREFERRED ISSUES TOTAL 65 BILLION AND THE COMPANY'S ADDITIONAL DEBT TOTALS 92 BILLION TIME WARNER EARLIER REGISTERED 15 BILLION OF DEBT SECURITIES OF WHICH IT HAS OFFERED 1 BILLION THE FINANCING MOVES REFLECT A CONTINUING DRIVE TO REDUCE THE DEBT INCURRED IN 1989 WHEN TIME INC ACQUIRED WARNER COMMUNICATIONS INC 9301150096 930115 FRUIT FIGHT TWO BANANA EMPIRES LATIN AND CARIBBEAN BATTLE OVER EUROPE EC AGREES TO PROTECT ISLANDS FROM CHEAPER RIVALS BUT WAR ISN'T OVER YET GERMANS HUNGRY UNHAPPY BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL FORT DE FRANCE MARTINIQUE BANANA FARMERS HERE COMMANDEERED THE AIRPORT LAST NOVEMBER DUMPING TONS OF BANANAS ON THE RUNWAYS AND THREATENING TO TURN THE MESS INTO A HUGE BANANA FLAMBE BY IGNITING CAPTURED JETFUEL TANKS THE FARMERS WERE READY TO DIE FOR THEIR BANANAS SAYS HERVE TOUSSAY A BEARDED AGRICULTURAL EXPERT SURVEYING A TRANQUIL VALLEY CARPETED WITH LEAFY GREEN BANANA PLANTS THE TANTRUM WAS LARGELY A RESPONSE TO THE THREAT THAT THE EUROPEAN COMMISSION MIGHT OPEN ALL OF EUROPE TO THE LATIN AMERICAN BANANA BANE OF THE CARIBBEAN BANANA BECAUSE IT IS LARGER AND LESS EXPENSIVE ALLOWING LATIN AMERICAN BANANAS FREE ENTREE TO EUROPE COULD ECONOMICALLY DEVASTATE MARTINIQUE AN OVERSEAS DEPARTMENT OF FRANCE WHOSE BANANAS HAVE LONG ENJOYED ACCESS TO THE PROTECTED FRENCH MARKET SIMILARLY AFFECTED WOULD BE NEARBY ISLANDS SUCH AS BANANADEPENDENT DOMINICA A FORMER BRITISH COLONY ACCUSTOMED TO A PROTECTED MARKET IN THE UNITED KINGDOM BUT IT WOULD GIVE A BIG BOOST TO LATIN AMERICAN NATIONS SUCH AS ECUADOR COLOMBIA PANAMA COSTA RICA AND HONDURAS IN THESE COUNTRIES BANANAS ARE GROWN CHEAPLY ON HUGE PLANTATIONS AND MARKETED EFFICIENTLY BY COMPANIES SUCH AS CINCINNATIBASED CHIQUITA BRANDS INTERNATIONAL INC THE WORLD'S BIGGEST BANANA COMPANY A FEW YEARS AGO THESE COUNTRIES AND CORPORATIONS GREATLY EXPANDED CAPACITY HOPING TO CAPTURE NEW MARKETS IN THE FORMER SOVIET BLOC AND ALL OF EUROPE ONCE IT FORMED A SINGLE MARKET AS IT DID JAN 1 THE LATIN AMERICAN THREAT TERRIFIES AND ANGERS THE CARIBBEAN WHERE BANANA EXPORTS TO EUROPE KEEP MANY ISLANDS AFLOAT DOMINICA PRIME MINISTER EUGENIA CHARLES CONFIRMS REPORTS THAT SHE TOLD US TRADE REPRESENTATIVE CARLA HILLS LAST SUMMER THAT SHE WOULD SHOOT HER IF THE AMERICAN CONTINUED TO INSIST THAT BANANAS BE INCLUDED IN TRADELIBERALIZATION TALKS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE SUCH LIBERALIZATION WOULD JEOPARDIZE THE PREFERENTIAL ENTRY OF DOMINICA'S BANANAS INTO THE UNITED KINGDOM DAME EUGENIA SAYS HER THREAT WAS A JOKE I WAS TRYING TO STRESS HOW IMPORTANT BANANAS ARE TO US A US TRADE OFFICIAL RETURNING A CALL FOR MS HILLS SAYS SHE DENIES RECEIVING THE THREAT ON A BIGGER ISLAND HALF A WORLD AWAY BANANAS ARE A BURNING ISSUE IN THE HOUSE OF LORDS HERE A STRONG SENSE OF LOYALTY PERSISTS FOR ENGLAND'S FORMER COLONIES IN THE CARIBBEAN IN NOVEMBER LORD GLENCONNER TOLD THE ASSEMBLED PEERS OF THE REALM DURING HIS MAIDEN SPEECH THAT DARK CLOUDS ARE GATHERING OVER THE CARIBBEAN BY CLOUDS HE MEANT THE THREAT OF LATIN AMERICAN BANANAS IT'S EASY TO SEE WHY LATIN AMERICAN GROWERS WOULD SALIVATE AT THE PROSPECT OF SELLING BANANAS TO ALL OF EUROPE EUROPEANS CONSUME 3 BILLION OF BANANAS A YEAR AND THEIRS IS THE WORLD'S FASTESTGROWING BANANA MARKET BUT UP TO NOW LATIN AMERICA HAS BEEN UNABLE TO INCREASE ITS 65 SHARE OF THE EUROPEAN MARKET BECAUSE BANANA MARKETS IN SPAIN FRANCE PORTUGAL GREECE AND THE UNITED KINGDOM HAVE BEEN LIMITED BY LAW LARGELY TO FRUIT GROWN DOMESTICALLY OR IN FORMER COLONIES FOR EUROPEAN BANANA LOVERS THAT PROTECTIONISM HAS COME AT A PRICE IN THE UK BANANAS COST 207 A KILOGRAM IN AUGUST 1991 COMPARED WITH 130 IN GERMANY WHICH HAS LONG ENJOYED A FREE MARKET IN THE US WHICH GETS VIRTUALLY ALL ITS BANANAS FROM LATIN AMERICA THE RETAIL PRICE AT THAT TIME WAS 92 CENTS THE HIGH PRICE IN PLACES SUCH AS ENGLAND ISN'T ONLY BECAUSE OF LACK OF COMPETITION GROWING BANANAS IN THE CARIBBEAN COSTS TWICE AS MUCH AS IN LATIN AMERICA BECAUSE OF HILLY TERRAIN SMALLER PLANTATIONS AND ON MARTINIQUE AND GUADELOUPE EUROPEANSCALE WAGES TO MAKE MATTERS WORSE THESE GNATSIZED ISLANDS PRODUCE SMALLER BANANAS THAT SUSTAIN MORE BRUISES AND LOOK LESS ATTRACTIVE THAN LATIN AMERICA'S BUT ISLAND BANANAMEN CLAIM RECENTLY TO HAVE NARROWED THE QUALITY GAP THE ECONOMY OF DOMINICA A MOUNTAINOUS SPECK OF LUSH RAIN FOREST BETWEEN MARTINIQUE AND GUADELOUPE LITERALLY RIDES ON BOARD THE BANANA BOAT THAT DOCKS EVERY THURSDAY DUBBED BANANA RECEPTION DAY IN ROSEAU THE COUNTRY'S RICKETY CAPITAL THAT DAY THE WHOLE COUNTRY SEEMS TO BE INVOLVED IN THE FRENZIED PROCESS OF CUTTING WASHING INSPECTING PACKING WEIGHING AND LOADING ONTO A SHIP THE ISLAND'S GREEN GOLD AS BANANAS ARE CALLED FOR THE WEEKLONG TRIP TO GREAT BRITAIN BANANAS ACCOUNT FOR 70 OF EXPORTS FROM DOMINICA IT ALSO PRODUCES SOAP FROM COCONUTS AND VIRTUALLY ALL OF ITS BANANAS GO TO GREAT BRITAIN OF THE NATION'S 75000 PEOPLE 40000 DEPEND DIRECTLY OR INDIRECTLY ON BANANA PRODUCTION ALFRED DRIGO WHO FARMS ABOUT FOUR ACRES PRODUCES 250 BOXES OF BANANAS EVERY TWO WEEKS EMPLOYING SIX MEN PARTTIME AS WELL AS SOME OF HIS NINE CHILDREN THIS IS MY DAILY BREAD SAYS MR DRIGO IF THE MARKET FOR HIS BANANAS VANISHES MANY PEOPLE WILL STARVE IMMEDIATELY HE SAYS THE SURVIVAL OF THE COUNTRY IS DEPENDANT ON THE SURVIVAL OF THE BANANA INDUSTRY SAYS DAME EUGENIA THE ISLAND'S PRIME MINISTER KNOWN IN THESE PARTS AS THE IRON LADY OF THE CARIBBEAN IN DECEMBER AS THE CLOCK TICKED TOWARD THE OPENING OF A SINGLE EUROPEAN MARKET ON JAN 1 THE EUROPEAN COMMISSION STRUGGLED TO FIND A SOLUTION TO EUROPE'S BANANA DILEMMA AFTER A YEAR OF HEATED DEBATE THE COMMISSION VOTED STARTING ON JULY 1 TO SET A 20 TARIFF ON THE FIRST TWO MILLION TONS OF BANANAS IMPORTED FROM LATIN AMERICA AND A 170 TARIFF ON ANY OVER THAT AMOUNT LAST YEAR LATIN AMERICA SOLD ABOUT 25 MILLION TONS OF BANANAS IN EUROPE THAT DECISION RAISED A HUE AND CRY AMONG LATIN AMERICAN PRODUCERS COSTA RICA'S TRADE MINISTER ROBERTO ROJAS ESTIMATES THAT IT WILL SLASH LATIN AMERICA'S BANANA SALES BY 400 MILLION A YEAR OR ROUGHLY 20 COSTA RICA WHICH PRODUCES ABOUT 20 OF THE LATIN AMERICAN BANANAS SOLD IN EUROPE STANDS TO LOSE AS MUCH AS 80 MILLION SAYS MR ROJAS IN HONDURAS PRESIDENT RAFAEL CALLEJAS WARNS THAT THE TARIFF COULD WIPE OUT 60 OF HIS COUNTRY'S BANANA INDUSTRY THE DIRECT OR INDIRECT SOURCE OF 250000 JOBS ANOTHER BIG LOSER WAS GERMANY HOME TO EUROPE'S MOST VORACIOUS BANANA LOVERS THE AVERAGE GERMAN EATS 357 POUNDS OF BANANAS A YEAR COMPARED WITH THE EUROPEAN AVERAGE OF 223 POUNDS AMERICANS EAT ABOUT 25 POUNDS IN THE FORMER EAST GERMANY WHICH LONG WAS BEREFT OF BANANAS CONSUMERS ARE CATCHING UP BY EATING THEM AT A RATE OF 595 POUNDS A YEAR THE COMMISSION'S DECISION WHICH GERMANY OPPOSED WILL COST GERMAN BANANA LOVERS AN ESTIMATED 250 MILLION A YEAR LATIN AMERICAN PRODUCERS VOWED TO FIGHT THE EC DECISION THE PRESIDENTS OF EIGHT COUNTRIES SIGNED THE DECLARATION OF SAN JOSE ACCUSING THE EUROPEAN COMMUNITY OF ENDANGERING THEIR DEMOCRACIES BY LIMITING THEIR BANANA SALES TO EUROPE STEALING A PAGE FROM MARTINIQUE 1000 ECUADORAN BANANA WORKERS THIS WEEK DUMPED A COUPLE OF TONS OF BANANAS IN FRONT OF THE FRENCH EMBASSY IN QUITO AND BURNED THE FRENCH FLAG IN PROTEST MEANWHILE IN GERMANY FRUIT TRADERS SAID THEY WOULD SUE THE EC IN THE EUROPEAN COURT OF JUSTICE OVER THE BANANA DECISION ANOTHER LOSER THIS ONE IN AMERICA IS CHIQUITA ITS SALES AND EARNINGS HAVE BEEN SLIDING BECAUSE OF AMONG OTHER THINGS AN OUTBREAK OF BANANA DISEASE PLUMMETING BANANA PRICES IN EUROPE CAUSED BY OVERPRODUCTION AND LOWERTHANEXPECTED SALES IN THE FORMER SOVIET BLOC FOR THE NINE MONTHS ENDED SEPT 30 CHIQUITA REPORTED A NET LOSS OF 906 MILLION COMPARED WITH EARNINGS OF 1192 MILLION OR 237 A SHARE A YEAR EARLIER NINEMONTH SALES SLIPPED TO 34 BILLION FROM 35 BILLION ANALYST JOHN MCMILLIN OF PRUDENTIAL SECURITIES INC SAYS THE EC DECISION WHILE FIRMING BANANA PRICES IN THE SHORT RUN THUS HELPING THE COMPANY WILL LIMIT CHIQUITA'S MARKET GROWTH HE IS LOWERING HIS FORECAST OF CHIQUITA'S 1993 EARNINGS TO 1 A SHARE FROM 150 CHIQUITA DIDN'T RETURN CALLS SEEKING COMMENT THE LATIN BANANA PRODUCERS WILL SEEK RELIEF OVER THE NEXT FEW MONTHS AT THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT IN GENEVA HOWEVER A RULING BY GATT WOULDN'T NECESSARILY BE BINDING ON THE EC A PREVIEW OF THEIR ARGUMENT CAN BE HAD FROM JUAN MANUEL SANTOS COLOMBIA'S MINISTER OF TRADE HE CALLS THE EC DECISION A FARCE DIABOLICAL AND PERVERSE TOTALLY PREJUDICIAL AGAINST THE LATIN AMERICAN BANANA 9301150095 930115 INTERNATIONAL ALLIED PLANES DESTROYED SINGLE IRAQI MISSILE SITE BUT PENTAGON STILL LABELS RAID A MILITARY SUCCESS CLINTON REBUTS ARTICLE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON SAID THAT WEDNESDAY'S AIR RAID ON SOUTHERN IRAQ DESTROYED ONLY ONE OF THE FOUR SURFACETOAIR MISSILE SITES THAT HAD BEEN TARGETED BUT INSISTED THAT THE MISSION NONETHELESS WAS A POLITICAL AND MILITARY SUCCESS THERE WERE TWO OBJECTIVES SAID PENTAGON SPOKESMAN PETE WILLIAMS ONE IS TO SEND A MESSAGE TO SADDAM HUSSEIN THE OTHER IS TO DEAL WITH THE THREAT TO COALITION AIRCRAFT IT'S A SUCCESS FROM BOTH OF THOSE PERSPECTIVES MEANWHILE PRESIDENTELECT CLINTON AND HIS NOMINEE FOR SECRETARY OF STATE EXPRESSED SUPPORT FOR THE RAID AND SOUGHT TO REBUT A REPORT IN THE NEW YORK TIMES THAT THE CLINTON ADMINISTRATION WOULD SEEK TO EXTEND AN OLIVE BRANCH TO SADDAM HUSSEIN I HAVE NO INTENTION OF NORMALIZING RELATIONS WITH HIM AND I WASN'T ASKED ABOUT THAT MR CLINTON SAID AT A NEWS CONFERENCE IN LITTLE ROCK ARK AT HIS SENATE CONFIRMATION HEARING YESTERDAY SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER EXPRESSED CONTINUING TOTAL SUPPORT FOR THE BUSH ADMINISTRATION'S BOMBING OF IRAQ AND SAID A CLINTON WHITE HOUSE COULD PERHAPS USE EVEN GREATER FORCE TO ENSURE ALL UNITED NATIONS SANCTIONS ARE OBEYED IN WEDNESDAY'S RAID ABOUT THREE DOZEN US AIRCRAFT JOINED BY SEVERAL BRITISH AIRCRAFT LAUNCHED BOMBS AND MISSILES AGAINST EIGHT GROUPS OF TARGETS IN SIX AREAS OF SOUTHERN IRAQ BELOW THE 32ND PARALLEL FOUR OF THE TARGET GROUPS WERE RADAR WARNING AND COMMANDANDCONTROL CENTERS THAT ARE PART OF THE SOUTHERN IRAQ AIRDEFENSE NETWORK THE OTHER FOUR WERE MOBILE SA3 SURFACETOAIR MISSILE UNITS MR WILLIAMS DIDN'T DISCLOSE WHAT HAPPENED TO THE AIR DEFENSE UNITS HE SAID THAT ONE OF THE MISSILE SITES WAS DESTROYED THAT TWO WERE MOVED BY THE IRAQIS AFTER THE ATTACK AND THAT THE FOURTH NEAR THE TOWN OF BASRA REMAINS OPERATIONAL IN ADDITION TWO POTENTIALLY THREATENING MISSILE SITES IN NORTHERN IRAQ WERE REMOVED FROM OPERATIONAL STATUS BY THE IRAQIS MR WILLIAMS SAID IN MISSING THE BASRA SITE HE SAID THE RAID APPARENTLY STRUCK A STRUCTURE THAT WASN'T A TARGET THE IRAQI SOUTHERN AIR DEFENSE NETWORK IS NOW SERIOUSLY DEGRADED HE SAID MAJOR PARTS OF IT DON'T WORK IN KEEPING WITH THE PENTAGON'S HANDLING OF THE ENTIRE IRAQI MATTER IN RECENT WEEKS MR WILLIAMS REPEATEDLY EMPHASIZED THAT LIMITED NATURE OF THE RAID THIS ISN'T THE GULF WAR ALL OVER AGAIN HE SAID THIS WASN'T EVEN THE SECOND COUSIN OF ALL BATTLES HE SAID ALLUDING TO SADDAM HUSSEIN'S CALLING THE GULF WAR THE MOTHER OF ALL BATTLES THE PENTAGON SEES NO EVIDENCE THAT IRAQ IS PREPARING TO RETALIATE MR WILLIAMS SAID HE ALSO SAID REPEATEDLY THAT THE US RESERVES THE RIGHT TO STRIKE AGAIN INDICATING THAT THE BUSH ADMINISTRATION MIGHT EVEN ACT ONCE MORE IN ITS LAST DAYS IN POWER HE SAID I DON'T THINK ANYBODY CAN GUARANTEE AT THIS POINT THAT EITHER THIS ADMINISTRATION OR THE NEXT ADMINISTRATION MAY NOT HAVE TO TAKE SIMILAR STEPS IN THE FUTURE 9301150094 930115 OTC FOCUS COMPOSITE INDEX SETS ANOTHER RECORD RISING 892 POINTS OR 13 TO 69570 BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS SOARED ON MORE EXPLOSIVE BUYING IN THE TECHNOLOGY GROUP IN ITS BIGGEST ONEDAY ADVANCE SINCE MIDSEPTEMBER THE NASDAQ COMPOSITE INDEX GAINED 892 POINTS OR 13 TO 69570ITS SECOND STRAIGHT ALLTIME CLOSING HIGH WEDNESDAY THE INDEX ROSE 733 ADVANCING NASDAQ ISSUES SWAMPED DECLINERS 1592 TO 1058 NATIONAL MARKET SYSTEM VOLUME SWELLED TO 2448 MILLION SHARES UP FROM 2057 MILLION WEDNESDAY TRADERS CITED RENEWED OPTIMISM ABOUT THE EARNINGS PROSPECTS OF COMPUTERRELATED COMPANIES FOLLOWING A GLOWING PROFIT REPORT FROM INTEL WEDNESDAY SEVERAL SMALLER TECHNOLOGY COMPANIES JOINED THE GIANT SANTA CLARA CALIF SEMICONDUCTOR CONCERN IN SPREADING POSITIVE EARNINGS NEWS MEANWHILE ON THE NEW YORK STOCK EXCHANGE COMPUTER GIANT DIGITAL EQUIPMENT POSTED BETTERTHANEXPECTED RESULTS PARAMETRIC TECHNOLOGY A NASDAQ SOFTWARE STOCK SURGED 5 TO 58 1/2 WHILE SHARES OF XILINX A MAKER OF PROGRAMMABLE LOGIC DEVICES JUMPED 4 3/8 TO 30 1/8 INTEL WHICH ROSE 8 1/8 WEDNESDAY CLIMBED 2 5/8 TO 112 3/4 YESTERDAY ON THE BIG BOARD DIGITAL EQUIPMENT ADDED 7 3/8 TO 42 1/4 DESPITE THE STRENGTH IN DIGITAL AND IN MOTOROLA A BIG BOARD CHIPMAKER WHOSE STOCK SURGED 10 7/8 TO 123 1/4 BIG BOARD INDEXES LAGGED THOSE OF NASDAQ THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 148 OR 062 TO 23960 THE DOW JONES INDUSTRIAL AVERAGE ROSE A SCANT 432 OR 013 TO 326788 IN ADDITION TO INVESTORS WHO BOUGHT TECHNOLOGY STOCKS IN HOPES OF CASHING IN ON FUTURE EARNINGS GROWTH BUYING ALSO EMANATED FROM SHORT SELLERS LOOKING TO PULL OUT OF LOSING POSITIONS SHORT SELLING IS DESIGNED TO GENERATE PROFITS FROM BETS THAT STOCK PRICES WILL FALL SHORT POSITIONS ARE UNDONE OR COVERED BY STOCK PURCHASES PARAMETRIC WAS AMONG THE STOCKS WHOSE GAINS WERE FUELED IN PART BY SHORT COVERING SAID PATRICK DAVIS HEAD OF NASDAQ TRADING AT SALOMON BROTHERS THE SHORTS WERE FALLING ALL OVER EACH OTHER HE SAID SHARES OF SEVERAL OTHER HIGHFLYING TECHNOLOGY COMPANIES GAINED GROUND AHEAD OF EARNINGS REPORTS THAT CAME AFTER THE CLOSE APPLE COMPUTER GAINED 1 1/2 TO 65 AND WELLFLEET COMMUNICATIONS JUMPED 4 TO 45 1/2 MICROSOFT TRADED AS HIGH AS 94 BEFORE RETREATING LATE IN THE SESSION TO FINISH UNCHANGED AT 91 1/4 APPLE POSTED FIRSTQUARTER NET INCOME OF 133 A SHARE COMPARED WITH 136 A YEAR AGO MICROSOFT REPORTED A PROFIT OF 78 CENTS A SHARE FOR ITS SECOND QUARTER UP FROM 60 CENTS WELLFLEET EARNED NET OF 19 CENTS A SHARE COMPARED WITH OPERATING PROFIT OF EIGHT CENTS A YEAR AGO ALL OF THE REPORTS WERE GENERALLY IN LINE WITH ANALYSTS' EXPECTATIONS IN AFTERHOURS TRADING ON REUTERS HOLDINGS' INSTINET ELECTRONIC SYSTEM APPLE WAS QUOTED AT 63 3/8 AND MICROSOFT AT 89 1/4BOTH LOWER THAN THE REGULAR SESSION CLOSING PRICES WELLFLEET HADN'T TRADED EVEN WITH THE TREMENDOUS GAINS OF THE PAST SEVERAL SESSIONS WHICH COME ON TOP OF A BIG RALLY IN LAST YEAR'S FOURTH QUARTER ROBERT RITTER A TECHNICAL ANALYST AT LADENBURG THALMANN & CO SAID MORE GAINS COULD BE IN THE OFFING ALTHOUGH OPTIMISM IS RUNNING HIGH RITTER SAID SPECULATION HASN'T REACHED THE FEVERISH LEVEL THAT WOULD SIGNAL AN IMMEDIATE SELLOFF THAT COULD CHANGE IN THE SHORT TERM IF THERE IS MORE ACTION LIKE TODAY'S HE SAID BUT FOR NOW HE SUSPECTS THAT INVESTOR DEMAND IS STRONG ENOUGH TO CONTINUE TO SUPPORT THE MARKET MARY FARRELL A MARKET STRATEGIST AT PAINEWEBBER ALSO EXPECTS CONTINUED MARKET STRENGTH WHILE THE RECENT RUNUP COULD LEAD TO A SELLOFF OF AS MUCH AS 10 IN OVERTHECOUNTER STOCKS SHE SAID THE MARKET LIKELY WILL RECOVER RAPIDLY MEANWHILE EARNINGS AT PARAMETRIC WHICH IS BASED IN WALTHAM MASS MORE THAN DOUBLED TO 29 CENTS IN THE FIRST QUARTER ENDED JAN 2 FROM 14 CENTS A YEAR EARLIER AT XILINX SAN JOSE CALIF PROFITS ROSE TO 30 CENTS A SHARE FOR THE THIRD QUARTER ENDED JAN 2 FROM 24 CENTS SHARES OF OTHER MAKERS OF PROGRAMMABLE LOGIC DEVICES FOLLOWED XILINX'S LEAD ALTERA CLIMBED 5/8 TO 13 1/8 AND LATTICE SEMICONDUCTOR INCREASED 2 3/8 TO 29 1/8 VALUEADDED COMMUNICATIONS ROSE 1 TO 10 AFTER THE OAKBROOK TERRACE ILL COMPANY ENTERED INTO A LETTER OF INTENT TO BE ACQUIRED BY US LONG DISTANCE THROUGH A STOCK SWAP TRANSACTION VALUED AT ABOUT 100 MILLION US LONG DISTANCE SHARES WERE UNCHANGED AT 18 1/4 CLASS A SHARES OF TELECOMMUNICATIONS AN ENGLEWOOD COLO CABLE TELEVISION COMPANY GAINED 1 5/8 TO 23 5/8 OFFICIALS OF THE COMPANY MADE A POSITIVE PRESENTATION AT A MEDIA INDUSTRY CONFERENCE SPONSORED BY SMITH BARNEY HARRIS UPHAM & CO ATMEL ADVANCED 1 7/8 TO 18 IT REPORTED FOURTHQUARTER PROFIT OF 25 CENTS A SHARE UP FROM JUST FIVE CENTS A YEAR EARLIER THE SAN JOSE CALIF INTEGRATED CIRCUIT MANUFACTURER HAD REVENUE OF 409 MILLION COMPARED WITH 266 MILLION ANALYSTS INTERNATIONAL ROSE 4 3/8 TO 28 1/4 THE MINNEAPOLIS PROVIDER OF SOFTWARE SERVICES AND PROGRAMMING HAD A PROFIT OF 44 CENTS A SHARE IN THE SECOND QUARTER ENDED LAST MONTH UP SHARPLY FROM 23 CENTS A YEAR EARLIER BUT SHARES OF BORLAND INTERNATIONAL A SCOTTS VALLEY CALIF SOFTWARE COMPANY FELL 1/2 TO 18 1/4 KIDDER PEABODY & CO ANALYST TERENCE QUINN SCALED BACK HIS FORECAST FOR THE COMPANY'S RESULTS FOR THE FOURTH QUARTER ENDING IN MARCH HE CITED CONCERNS ABOUT THE AGGRESSIVELY LOW PRICING HE EXPECTS BORLAND TO OFFER ON A NEW SPREADSHEET PACKAGE 9301150093 930115 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN POUL SCHLUETER RESIGNED AS PRIME MINISTER OF DENMARK AFTER AN INVESTIGATION DETERMINED HE HAD MISLED PARLIAMENT IN A SCANDAL INVOLVING VISA DELAYS FOR TAMIL REFUGEES FROM SRI LANKA MR SCHLUETER 63 YEARS OLD AND PRIME MINISTER SINCE 1982 STEPPED DOWN AFTER A SUPREME COURT JUDGE ISSUED A 6000PAGE REPORT ON THE SOCALLED TAMILGATE AFFAIR DATING TO 1987 HIS CONSERVATIVELED GOVERNING COALITION FAVORS FINANCE MINISTER HENNING DYREMOSE 47 TO SUCCEED HIM BUT CENTRIST PARTIES BALKED AND COULD FORCE ELECTIONS WITH OPPOSITION SOCIAL DEMOCRATS SEEKING TO RETURN TO POWER OFFICIALS AND BUSINESS LEADERS PLAYED DOWN THE EFFECT OF THE POLITICAL UPHEAVAL ON DENMARK'S COMING SECOND REFERENDUM ON THE EUROPEAN COMMUNITY UNITY TREATY BECAUSE SEVEN OF DENMARK'S EIGHT MAJOR PARTIES FAVOR THE TREATY THEY SAID A GOVERNMENT RESHUFFLE SHOULDN'T UNDULY INFLUENCE VOTERS DENMARK WHICH ASSUMED THE EC'S ROTATING PRESIDENCY ON JAN 1 WILL VOTE IN APRIL ON THE TREATY NARROWLY DEFEATED IN ITS FIRST REFERENDUM LAST JUNE A RESOLUTION TO WORLD TRADE TALKS MAY BE MONTHS AWAY AT THE EARLIEST THIS WEEK'S THRUST FOR A SETTLEMENT BY THE US AND EUROPEAN COMMUNITY IN GENEVA ALL BUT ENDED NEGOTIATORS SAID IT HAD BEEN UNREALISTIC TO REACH AGREEMENT BEFORE PRESIDENT BUSH LEAVES OFFICE THE US WANTS A POLITICALLY SUSTAINABLE OUTCOME FOR THE GENERAL AGREEMENT ON TARIFFS AND TRADE THAT IS BACKED BY US MANUFACTURERS AND EXPORTERS STILL THE TALKS CONTINUED IN A BID TO ESTABLISH POSITIONS FOR THE NEW US ADMINISTRATION BUT AN ACCORD SEEMED UNLIKELY BEFORE MARCH 1 WHEN AUTHORITY FOR SPEEDY PASSAGE BY CONGRESS ENDS BUSINESS LOSSES AFTER NINE DAYS OF DEADLY HINDUMUSLIM RIOTS IN INDIA WERE ESTIMATED AT BETWEEN 75 BILLION AND 10 BILLION RUPEES 260 MILLION AND 350 MILLION INDUSTRIAL PRODUCTION SALES EXPORTS AND STOCK TRADING ALL HAVE COME TO A STANDSTILL ALSO GOODS VALUED AT MILLIONS OF RUPEES HAVE BEEN STOLEN OR DESTROYED BY MOBS THE BLOW TO THE ECONOMY COMES AS THE GOVERNMENT HAS BEEN TRYING TO OPEN INDIAN MARKETS TO FOREIGN COMPANIES IN HOPES THAT COMPETITION WILL SPUR QUALITY IMPROVEMENTS BY INDIAN FIRMS MANY OF WHICH ARE COMPLACENT AFTER DECADES OF PROTECTIONISM SOUTH KOREA'S ECONOMY GREW AT AN INFLATIONADJUSTED ANNUAL AVERAGE RATE OF 85 IN THE PAST FIVE YEARS AND PER CAPITA INCOME EXPANDED TO 6700 FROM 3110 THE ECONOMIC PLANNING BOARD ALSO SAID INFLATION WAS HELD TO 45 LAST YEAR AFTER 9 RATES IN EACH OF THE TWO PREVIOUS YEARS INTEREST RATES FELL TO 13 FROM 19 IN 1991 DISPOSABLE INCOME ROSE TO AN AVERAGE OF 1370 LAST YEAR FROM 675 IN 1987 BETWEEN 1988 AND LATE LAST YEAR 27 MILLION HOUSING UNITS WERE BUILT EXCEEDING THE GOVERNMENT TARGET OF 2 MILLION FOR THE SECOND TIME IN AS MANY DAYS FIRE BROKE OUT AT THE CHERNOBYL NUCLEAR POWER PLANT IN UKRAINE BUT BOTH INCIDENTS WERE MINOR AND DIDN'T POSE ANY RADIATION DANGER OFFICIALS SAID THE SECOND FIRE STARTED IN RAILWAY TIES DUMPED IN A VENTILATION SHAFT IN A REMOTE SECTION OF A CONCRETE TOMB ENCASING THE REACTOR WHICH EXPLODED IN APRIL 1986 AND SENT RADIATION ACROSS EUROPE IN THE WORLD'S WORST NUCLEAR ACCIDENT TWO OF THE FOUR REACTORS ARE STILL IN OPERATION AND PRODUCE ELECTRICITY AT THE STATION 80 MILES NORTH OF KIEV THE COMPLEX IS TO BE CLOSED LATER THIS YEAR SWEDEN EARMARKED 204 MILLION KRONOR 276 MILLION FOR THE STATE RAIL SYSTEM ENABLING IT TO ORDER 14 TRAINS TWO YEARS AHEAD OF SCHEDULE AND SECURING WORK FOR 490 WORKERS AT TWO FIRMS THAT MAKE THE CARS THE ORDER IS VALUED AT 784 MILLION KRONOR THE STATE INJECTION WILL COVER INTEREST COSTS THE GOVERNMENT BATTLING A STUBBORN RECESSION IS REVIEWING OTHER PROPOSALS FROM STATEOWNED ENTERPRISES TO SPEED SPENDING AS A WAY TO CREATE JOBS SERVICE STATIONS IN SPAIN MAY SET RETAIL GASOLINE PRICES UNDER A LAW THAT TOOK EFFECT YESTERDAY THOUGH THE GOVERNMENT WILL CONTINUE TO SET MAXIMUM PRICES IN ADDITION TO ABOLISHING FIXED PRICING THE LAW ENDS THE 65YEAROLD CAMPSA MONOPOLY WHICH ONCE DOMINATED MARKETING AND DISTRIBUTION OF OIL PRODUCTS IN THE COUNTRY SINCE SPAIN JOINED THE EUROPEAN COMMUNITY IN 1986 CAMPSA HAS BEEN GRADUALLY REDUCED TO A WHOLESALE STORAGE AND DISTRIBUTION CONCERN STARTING TUESDAY THE BATTLE FOR CUSTOMERS WILL BE WAGED NOT ONLY WITH PRICING BUT A RANGE OF SERVICES MANY OIL COMPANIES PLAN TO OFFER NEW CHOICES AT SPAIN'S 4000 SERVICE STATIONS FROM LESS EXPENSIVE GAS AT SELFSERVICE PUMPS TO MORE EXPENSIVE FULLSERVICE TREATMENTS THE UNACCUSTOMED COMPETITION FOR CUSTOMERS ARRIVES AS SPAIN THIS YEAR EXPECTS SLUGGISH GAS SALES WHICH LAST YEAR ROSE ONLY 36 FROM A YEAR EARLIER RUSSIA AND UKRAINE AGREED ON OIL PRICES AND SHIPMENTS BETWEEN THE TWO REPUBLICS LAST YEAR FAILURE TO REACH AGREEMENT DISRUPTED OIL DELIVERIES TO WESTERN EUROPE NORTH KOREA ISOLATED SINCE THE SOVIET BLOC'S COLLAPSE HAS BEGUN JAMMING KOREANLANGUAGE RADIO BROADCASTS BY THE VOICE OF AMERICA AND THE FREQUENCY USED BY ADVENTIST WORLD RADIO IN GUAM 9301150092 930115 BUSINESS BRIEF BETHLEHEM STEEL IS EXPECTED TO SPLIT ITS MAIN MILLS INTO INDEPENDENT UNITS BETHLEHEM STEEL CORP IS NEARING DECISIONS TO SPLIT ITS TWO BIG PLANTS INTO SEPARATE BUSINESS UNITS AND TO INVEST IN A COSTLY EFFORT TO SAVE ITS STRUCTURALPRODUCTS UNIT OFFICIALS WITH THE UNITED STEELWORKERS UNION SAY THEY EXPECT BY THE END OF THE MONTH TO REACH A NEW ACCORD WITH BETHLEHEM AT ITS STRUCTURAL PRODUCTS BUSINESS IN BETHLEHEM PA CLEARING THE WAY FOR A MODERNIZATION THAT THE COMPANY HAS SAID WOULD COST SEVERAL HUNDRED MILLION DOLLARS BETHLEHEM THE NATION'S SECOND LARGEST STEELMAKER HAS MADE A NEW AGREEMENT A CONDITION FOR MAKING THE MODERNIZATIONS A BETHLEHEM SPOKESMAN CONFIRMED THAT THE STRUCTURALPRODUCTS MODERNIZATION IS EXPECTED TO BE ON THE AGENDA AT THE BOARD'S JAN 27 MEETING THE FATE OF THE BUSINESS WHICH BETHLEHEM SAYS ISN'T COMPETITIVE HAS BEEN IN QUESTION SINCE TALKS TO PLACE IT IN A JOINT VENTURE WITH BRITISH STEEL PLC BROKE DOWN IN 1991 THE COMPANY IS ALSO EXPECTED AS SOON AS MONDAY TO ANNOUNCE A REORGANIZATION THAT WILL DIVIDE ITS FLATROLLED STEEL MILLS IN BURNS HARBOR IND AND SPARROWS POINT MD INTO INDEPENDENT BUSINESS UNITS MOST LIKELY WITH THEIR OWN PRESIDENTS AND DIRECTORS BETHLEHEM WILL LIKELY DIVIDE THE SALES STAFF AND OTHER SUPPORT WORKERS AT THE COMPANY'S BETHLEHEM PA HEADQUARTERS AND TRANSFER THEM TO THE TWO PLANTS THE TWO MILLS WOULD REMAIN WHOLLY OWNED BY BETHLEHEM WHICH IS EXPECTED TO KEEP SOME CENTRALIZED CONTROL OVER THE PLANTS TO PREVENT THEM FROM UNDERCUTTING EACH OTHER THE SPOKESMAN CONFIRMED THAT BETHLEHEM INTENDS TO SPLIT ITS MILLS INTO SEPARATE UNITS HE SAID THE COMPANY HASN'T MADE A FINAL DECISION ON THE PLAN BUT IT HAS SCHEDULED MEETINGS ON THE SUBJECT THROUGH THE WEEKEND AND EXPECTS TO HOLD A STAFF MEETING MONDAY THE DECENTRALIZATION ENGINEERED BY BETHLEHEM'S NEW CHAIRMAN CURTIS H BARNETTE SEEKS TO END NEARLY A CENTURY OF TOPHEAVY DECISION MAKING THE NEW STRUCTURE WILL BRING BETHLEHEM CLOSER TO ITS CUSTOMERS AND PUT MORE PRESSURE ON MANAGERS TO MAKE PROFITS IT WILL ALSO MAKE BETHLEHEM'S STRUCTURE MORE LIKE THAT OF THE LOWCOST STEEL MINIMILLS BETHLEHEM ALREADY HAS A SIMILAR ARRANGEMENT AT ITS RAILPRODUCTS BUSINESS IN STEELTON PA THE COMPANY PLANS SUCH AN ARRANGEMENT EVENTUALLY FOR ITS STRUCTURALPRODUCTS UNIT THE DECENTRALIZATION THOUGH SIMILAR TO A MAJOR REORGANIZATION AT ALUMINUM CO OF AMERICA AND SMALLER EFFORTS AT MANY MAJOR STEELMAKERS IS A BIG STEP FOR BETHLEHEM WHICH HAS BEEN HISTORICALLY SLOWMOVING IT'S A MUCH MORE EFFICENT WAY OF DOING BUSINESS SAYS CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC IT BRINGS THE ACCOUNTABILITY DOWN TO THE PLANT LEVEL AND CUTS OUT A LOT OF BUREAUCRACY 9301150091 930115 TECHNOLOGY & HEALTH DOW CORNING REFUSES TO GIVE THE FDA INDEPENDENT REPORT ON BREAST IMPLANTS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL DOW CORNING CORP REFUSED TO TURN OVER TO THE FOOD AND DRUG ADMINISTRATION AN OUTSIDE COUNSEL'S REPORT ON THE COMPANY'S BREAST IMPLANTS DESPITE A SELFPROCLAIMED POLICY OF OPENNESS FDA SENIOR OFFICIALS SAY THE REPORT DISCUSSES POTENTIAL SAFETY CONSEQUENCES FOR SOME WOMEN WITH IMPLANTS THE FDA CONTENDS IT SHOULD REVIEW THE DOCUMENT TO SEE IF ANY WARNINGS NEED TO BE ISSUED TO THE WOMEN HOWEVER THE AGENCY HAS NO AUTHORITY TO COMPEL DOW CORNING TO TURN OVER THE DOCUMENT DOW CORNING HAS TRIED TO CREATE THE PUBLIC IMPRESSION THAT THEY'RE COOPERATING FULLY WITH US SAID A SENIOR FDA AIDE WHILE THEY HAVE SENT US HUNDREDS OF THOUSANDS OF DOCUMENTS THAT WERE REVIEWED FOR THE REPORT THEY ARE NOT ORGANIZED IN ANY USEFUL ORDER FDA OFFICIALS SAID THE INDEPENDENT REPORT WOULD GREATLY ASSIST IN REVIEWING THIS MATERIAL AND IF NECESSARY WARNING THE PUBLIC THE AGENCY HAS MADE REPEATED REQUESTS FOR THE REPORT WHICH IS BY ATLANTA LAWYER AND FORMER US ATTORNEY GENERAL GRIFFIN BELL SINCE IT WAS PRESENTED TO THE COMPANY IN EARLY NOVEMBER THE COMPANY RETAINED THE OUTSIDE INVESTIGATOR EARLY LAST YEAR AT THE HEIGHT OF PUBLIC FUROR OVER THE DEVICES IN PART TO REASSURE THE PUBLIC THAT AN INDEPENDENT THIRD PARTY WOULD EVALUATE AND REPORT ON THE IMPLANTS' SAFETY THE COMPANY AT THE TIME TERMED MR BELL'S WORK AN INDEPENDENT INVESTIGATION AND SAID THE COMPANY HIRED HIM TO PROVIDE AN INDEPENDENT OBJECTIVE FORUM FOR SCRUTINY OF DOW CORNING CONDUCT NOW HOWEVER DOW CORNING A JOINT VENTURE OF DOW CHEMICAL CO AND CORNING INC DESCRIBES MR BELL AS SOMEONE RETAINED TO RENDER LEGAL ADVICE IT CITES THE ATTORNEYCLIENT PRIVILEGE IN NOT TURNING OVER THE REPORT TO THE GOVERNMENT AND TO THE PUBLIC DOW CORNING'S CHAIRMAN KEITH R MCKENNON SAID THE COMPANY NEVER INTENDED TO MAKE THE BELL REPORT AVAILABLE TO THE FDA OR THE PUBLIC BECAUSE IT DEALS WITH OUR LITIGATION STRATEGY BUT HE SAID DOW CORNING INTENDS TO FACILITATE THE FDA'S INSPECTION OF THE SOCALLED OVENCHART RECORDS THE FEDERAL AGENCY IS CONCERNED WITH SECTIONS OF THE BELL REPORT DEALING WITH THESE CHARTS MR BELL'S RECOMMENDATIONS WHICH WERE MADE PUBLIC MAKE CLEAR THAT THESE CHARTS WERE FALSIFIED OVER MANY YEARS FURTHER THE FDA WAS NOT TOLD ABOUT THE FAKED RECORDS UNTIL MR BELL FINISHED HIS WORK THE DOCUMENTS IN QUESTION CONCERNED THE COOKING OF THE SILICONE GEL IF THE TEMPERATURE OR TIMING OF OVENS FOR HEATING THE SILICONE IS WRONG THEN THE GEL COULD WELL BE UNDERCOOKED AND TOO LIQUID THUS IT COULD MORE EASILY SEEP OUT OF THE IMPLANTS INTO WOMEN'S BODIES DOW CORNING MAINTAINS THE OVEN RECORDS HAVE NO SAFETY RAMIFICATIONS BUT FDA SENIOR STAFFERS SAY THEY WANT TO EVALUATE THIS AND CANNOT DO SO WITHOUT THE FULL BELL REPORT THEIR INTENTION WOULD BE TO WARN ANY WOMEN WHO MIGHT HAVE GOTTEN IMPLANTS WITH IMPROPERLY COOKED GEL 9301150090 930115 ECONOMY M2 GROWTH FELL BELOW ITS GOAL IN '92 FED SAYS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE SAID ITS MOST IMPORTANT MEASURE OF THE MONEY SUPPLY M2 GREW ONLY 21 LAST YEAR SHY OF THE FED'S GOAL OF 25 TO 65 GROWTH THE FED IS MOVING TOWARD LOWERING ITS TARGET RANGE FOR MONEY GROWTH IN 1993 BUT FED CHAIRMAN ALAN GREENSPAN INSISTS THAT DOESN'T PORTEND TIGHTER MONETARY POLICY AHEAD IN DISCUSSING POSSIBLE REDUCTIONS IN THE TARGET RANGES MR GREENSPAN WROTE IN A JAN 8 LETTER TO SEN JAMES SASSER D TENN I WAS NOT SIGNALLING ANY LESSENING IN THE FEDERAL RESERVE'S COMMITMENT TO FOSTERING THE SUSTAINED EXPANSION OF THE US ECONOMY WITH THE HIGHEST POSSIBLE LEVELS OF EMPLOYMENT AND OUTPUT OVER TIME NOR WAS I ENDEAVORING TO INDICATE ANY CHANGE IN MONETARY POLICY PER SE THE FED CHAIRMAN ADDED A COPY OF THE LETTER WAS OBTAINED YESTERDAY ALTHOUGH MR GREENSPAN IS EMPHASIZING THE TECHNICAL ARGUMENTS FOR RATCHETING DOWN THE FED'S MONEYGROWTH TARGETS SOME OTHER CENTRAL BANK OFFICIALS WANT TO LOWER THE RANGES TO UNDERSCORE THE FED'S COMMITMENT TO REDUCING INFLATION EVEN AS THE ECONOMY GATHERS STEAM THE ISSUE IS LARGELY SYMBOLIC BECAUSE THE FED ISN'T RELYING EXCLUSIVELY ON MONEYSUPPLY MEASURES TO MAKE ITS INTERESTRATE DECISIONS THE FED HAS COME UNDER INCREASING FIRE FROM CONGRESS AND SOME ECONOMISTS FOR TOLERATING SUCH SLOW MONEY GROWTH ALTHOUGH SOME MONETARY ECONOMISTS ARGUE FOR LOOKING AT NARROWER MEASURES WHICH HAVE BEEN GROWING MORE RAPIDLY IN A RECENT CONGRESSIONAL HEARING PAUL MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS LIKENED FED POLICY TO SOMEONE WHO FIRES A GUN AT THE SIDE OF A BUILDING AND THEN PAINTS A TARGET AROUND THE BULLET HOLE IN A LETTER TO REP HENRY GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING COMMITTEE LATE LAST YEAR MR GREENSPAN SAID THAT THE FED WAS CONSIDERING REDUCING ITS 1993 TARGET GROWTH RATE FOR THE M2 MEASURE OF THE MONEY SUPPLY TENTATIVELY SET AT 25 TO 65 THE FED SUBSEQUENTLY DISCLOSED THAT FED OFFICIALS REACHED A CONSENSUS AT THEIR NOVEMBER MEETING TO LOWER THE TARGETS THOUGH A FORMAL VOTE WON'T COME UNTIL NEXT MONTH THE FED MEASURES GROWTH IN THE MONEY SUPPLY BY COMPARING THE AVERAGE IN THE FOURTH QUARTER OF ONE YEAR TO THE NEXT AFTER SEEING THAT LETTER SEN SASSER WROTE MR GREENSPAN TO EXPRESS CONCERN THAT IF THE FED LOWERS ITS TARGET RANGE FOR M2 THE ECONOMIC RECOVERY COULD BE IMPEDED IN HIS REPLY MR GREENSPAN SAID THAT ISN'T SO BECAUSE OF CHANGES IN THE BEHAVIOR OF BORROWERS AND LENDERS HE SAID THE MONEY SUPPLY DOESN'T HAVE TO GROW AS RAPIDLY TO KEEP THE ECONOMY GROWING AT A HEALTHY PACE M2 INCLUDES CURRENCY CHECKING ACCOUNTS SOME MONEY MARKET FUNDS AND SOME CERTIFICATES OF DEPOSIT THE FED SAID YESTERDAY THAT M2 FELL BY 72 BILLION IN THE WEEK ENDED JAN 4 MR GREENSPAN IS TO TESTIFY ON THE ECONOMY AT THE JOINT ECONOMIC COMMITTEE ON JAN 27 AND THE SENATE BUDGET COMMITTEE ON JAN 28 HE WILL DELIVER THE FED'S SEMIANNUAL REPORT TO THE SENATE BANKING COMMITTEE ON FEB 18 9301150089 930115 IBM RATINGS ON ITS DEBT SLASHED BY S&P LOSS OF THE PRIZED TRIPLEA IS LARGELY SYMBOLIC DROP IS THREE NOTCHES BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SUFFERED A NEW BLOW TO ITS IMAGE AS STANDARD & POOR'S CORP STRIPPED THE EMBATTLED COMPUTER COMPANY OF ITS PRIZED TRIPLEA CREDIT RATING ACTING MORE SEVERELY THAN EXPECTED S&P SLASHED IBM'S RATING THREE NOTCHES TO DOUBLEAMINUS THE RATINGS AGENCY CITED IBM'S SIGNIFICANTLY LOWERTHANANTICIPATED RESULTS ESPECIALLY IN ITS CORE MAINFRAME COMPUTER BUSINESS WHILE THE MAINFRAME MARKET WAS EXPECTED TO DECLINE OVER TIME THE PRECIPITOUS DROP IN DEMAND INDICATED IN DECEMBER REPRESENTS A SERIOUS CONCERN S&P SAID IN ARMONK NY AN IBM SPOKESMAN DIDN'T HAVE ANY RESPONSE TO S&P'S MOVE ONCE THE STABLEST OF ALL BLUECHIP INVESTMENTS IBM HAS SEEN ITS REPUTATION ERODE IN THE CREDIT MARKETS AS ITS BUSINESS PLUNGES INTO ITS WORST CRISIS EVER IN DECEMBER IBM SAID IT LIKELY WOULD HAVE ITS FIRST LAYOFFS IN HALF A CENTURY WARNED ITS DIVIDEND WAS IN DANGER AND INDICATED IT WOULD REPORT MORE THAN 3 BILLION IN 1992 NET LOSSES LAST MARCH THE OTHER MAJOR BONDRATING AGENCY MOODY'S INVESTORS SERVICE INC DOWNGRADED IBM'S RATING TO DOUBLEA2 TWO NOTCHES DOWN FROM ITS PREVIOUS TRIPLEA RATING S&P SIGNALED ITS GROWING CONCERN ABOUT IBM IN AUGUST 1991 BY CHANGING ITS OFFICIAL OUTLOOK TO NEGATIVE FROM STABLE AND LAST MONTH PLACED IBM ON ITS CREDITWATCH LIST S&P SAID ITS DOWNGRADE AFFECTS SOME 19 BILLION OF DEBT OF IBM AND THREE UNITS IBM CREDIT CORP IBM INTERNATIONAL FINANCE NV AND IBM JAPAN LTD S&P ALSO AFFIRMED ITS A1+ RATING OF IBM'S COMMERCIAL PAPER AN S&P OFFICIAL SAID THAT RATING TYPICALLY GOES TO COMPANIES WITH SENIOR DEBT IN THE DOUBLEA OR TRIPLEA RANGES ANALYSTS SAID THE RATINGS CUT PROBABLY WOULDN'T HAVE A SIGNIFICANT IMPACT ON IBM'S BOTTOM LINE WHAT IT DOES HURT IS THE CREDIBILITY OF MANAGEMENT'S JOB OVER THE LAST SEVERAL YEARS TO REPOSITION THE COMPANY AND IT PUTS MORE PRESSURE ON THEM TO GENERATE CASH AND GET THE EARNINGS BACK ON TRACK IN 1993 SAID STEPHEN DUBE OF SHERWOOD RESEARCH GROUP S&P SAID IBM'S RESTRUCTURING MOVES WILL HAVE LONGERTERM BENEFITS BUT IT ADDED THE COMPANY'S BUSINESS RISK HAS INCREASED SIGNIFICANTLY AND SAID IT'S UNCLEAR HOW EFFECTIVELY IBM WILL ADAPT TO THIS NEW ENVIRONMENT ON THE PLUS SIDE THE RATINGS AGENCY ALSO CITED IBM'S CONSERVATIVE FINANCIAL POLICIES AND CONSIDERABLE LIQUIDITY S&P DIDN'T OFFER MUCH NEW ANALYSIS FOR INVESTORS WHO ARE ALREADY ANXIOUS ABOUT IBM'S FOURTHQUARTER EARNINGS ANNOUNCEMENT ON TUESDAY AS WELL AS A DIVIDEND MEETING JAN 26 IBM STOCK WHICH HAS BEEN TRADING AT 17YEAR LOWS CLOSED UP 1 TO 4875 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY THE S&P ANNOUNCEMENT CAME AFTER THE MARKET CLOSED THE PRICES OF IBM BONDS REACTED LITTLE TO THE NEWS OF THE DOWNGRADING BECAUSE A CUT HAD BEEN WIDELY EXPECTED AND DISCOUNTED BY MOST BOND TRADERS HOWEVER IBM'S DEBT DID SLIDE AFTER THE ANNOUNCEMENT OF BIG BLUE'S RESTRUCTURING PLANS IN DECEMBER ACCORDING TO FIRST BOSTON CORP PRICES OF MOST SHORTTERM AND LONGTERM IBM DEBT DROPPED SHARPLY AFTER THE SHOCK BUT HAVE MADE SOME GAINS SINCE THEN BEFORE THE RESTRUCTURING FOR EXAMPLE IBM'S 8 3/8 NOTES MATURING IN 2019 YIELDED 060 PERCENTAGE POINT MORE THAN COMPARABLE TREASURY SECURITIES THIS INTEREST RATE GAP WIDENED TO ABOUT 075 PERCENTAGE POINT SHORTLY AFTER THE RESTRUCTURING ANNOUNCEMENT ACCORDING TO FIRST BOSTON A SIGN THAT IT HAD LOST VALUE IN THE WEEKS SINCE THEN THAT GAP HAS NARROWED A BIT TO 070 PERCENTAGE POINT A SIGN THAT INVESTORS ARE MORE CONFIDENT ABOUT IBM'S PLANS BUT STILL CONCERNED ABOUT ITS LONGTERM CREDIT OUTLOOK 9301150088 930115 DIGITAL REPORTS LOSS SMALLER THAN EXPECTED STOCK JUMPS 21 TO 4225 SOME SAY TURNAROUND COULD BE TAKING HOLD BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP SURPRISED INVESTORS WITH A SMALLERTHANEXPECTED LOSS ON A 6 REVENUE GAIN IN ITS SECOND QUARTER ENDED DEC 26 IGNITING A RALLY IN THE COMPUTER MAKER'S STOCK DIGITAL WHICH IS BASED IN MAYNARD MASS AND IS THE US'S SECOND LARGEST COMPUTER COMPANY REPORTED A NET LOSS OF 739 MILLION OR 57 CENTS A SHARE COMPARED WITH A LOSS OF 1552 MILLION OR 125 A SHARE A YEAR EARLIER THE LOSS IN THE LATEST PERIOD WAS SIGNIFICANTLY SMALLER THAN ANALYSTS' ESTIMATES AND SUGGESTED TO SOME INVESTORS THAT A TURNAROUND COULD BE TAKING HOLD DIGITAL SHARES REACTED SHARPLY SURGING 21 TO 4225 UP 7375 ON THE DAY IN NEW YORK STOCK EXCHANGE TRADING IT WAS THE BIG BOARD'S MOST ACTIVE ISSUE WITH 56 MILLION SHARES CHANGING HANDS THEY CAUGHT EVERYONE OFF GUARD AND NOW PEOPLE ARE SCRAMBLING TO GET POSITIONS IN THE COMPANY SAYS JOHN B JONES JR A SALOMON BROTHERS ANALYST BUT MR JONES AND OTHERS WERE CAUTIOUS PERHAPS MINDFUL OF PAST DISAPPOINTMENTS DIGITAL HAS BEEN DOWN AND OUT FOR TWO YEARS HE WARNS THEY STILL HAVE A LOT OF WORK TO DO REVENUE ROSE TO 369 BILLION FROM 348 BILLION CONTINUED GROWTH IN SERVICES SUCH AS DESIGNING AND MANAGING CORPORATE COMPUTER NETWORKS OFFSET FLAT GROWTH IN PRODUCT SALES BUT FAVORABLE CURRENCYEXCHANGE RATES ACCOUNTED FOR MOST OF THE GROWTH WITHOUT CURRENCY TRANSLATIONS REVENUE ROSE ONLY 15 TO 2 ANALYSTS SAY FOREIGN SALES NOW ACCOUNT FOR A RECORD 65 OF DIGITAL'S REVENUE DIGITAL ALSO SAID IT ELIMINATED 6400 JOBS IN THE QUARTER BRINGING ITS WORLDWIDE WORK FORCE TO 102100 AT THE END OF 1992 EXECUTIVES HAVE SAID THE CUTS WILL CONTINUE AT LEAST THROUGH 1993 OR UNTIL DIGITAL REACHES A PAYROLL OF 85000 TO 90000 ROBERT B PALMER WHO BECAME PRESIDENT AND CHIEF EXECUTIVE OCT 1 STRUCK A CAUTIOUS TONE IN CONFERENCE CALLS WITH REPORTERS AND ANALYSTS THIS RECOVERY WILL TAKE TIME BUT WE'RE ENCOURAGED BY OUR PROGRESS HE SAID SERVICE REVENUE WAS STRONG HE SAID THE DECLINE IN DIGITAL'S CORE VAX COMPUTER LINE STABILIZED AND PERSONAL COMPUTER AND WORKSTATION SALES GREW STRONGLY IN THE PERIOD MR PALMER ALSO SAID THE COMPANY SAW A MODEST INCREASE IN SALES IN THE US THE FIRST IN TWO YEARSAND THE UK OFFSET BY CONTINUED PRESSURE IN THE GERMAN FRENCH AND JAPANESE MARKETS DIGITAL EXECUTIVES ALSO SAID THE NEXTGENERATION ALPHA COMPUTERS WERE OFF TO A GOOD START IN THE QUARTER ESPECIALLY LOWEND MODELS BUT MOST SALES STILL GO TO SOFTWARE DEVELOPERS AND TO LARGE CUSTOMERS WHO ARE ONLY EVALUATING THE NEW DESIGN AND MIDRANGE AND HIGHEND ALPHA MACHINES AREN'T YET SELLING WELL BECAUSE SOME KEY APPLICATIONS SOFTWARE PACKAGES AREN'T READY YET LOOKING AHEAD BARRY F WILLMAN AN ANALYST AT SANFORD C BERNSTEIN & CO SAYS THE QUARTER'S IMPROVED RESULTS MAKE IT SEEM MUCH MORE LIKELY THAT THE COMPANY CAN RETURN TO PROFITABILITY BY THE JUNE QUARTER SHAO WANG AN ANALYST WITH SMITH BARNEY HARRIS UPHAM SAYS THE ISSUE NOW IS HOW SUSTAINABLE THE MOMENTUM WILL BE HE RECOMMENDS THE STOCK TO SPECULATIVE INVESTORS HOWEVER SAYING THAT WITH NEW MANAGEMENT POWERFUL NEW SEMICONDUCTOR TECHNOLOGY AND AGGRESSIVE COST CUTTING THE SEEDS OF A TURNAROUND ARE CLEARLY IN PLACE 9301150087 930115 WHO'S NEWS ELSINORE'S HOOD QUITS 2 TOP POSTS BURRELL IS NAMED CHAIRMAN LAS VEGAS ELSINORE CORP SAID JEANNE HOOD RESIGNED AS CHAIRMAN AND PRESIDENT OF THE HOTEL AND CASINO CONCERN TO DEVOTE MORE TIME TO A CIVIC PROJECT IN LAS VEGAS SHE WAS SUCCEEDED AS CHAIRMAN BY FRANK L BURRELL JR AND THOMAS E MARTIN WAS NAMED ACTING PRESIDENT MR MARTIN'S POST IS EXPECTED TO BECOME PERMANENT UPON APPROVAL BY THE LAS VEGAS GAMING COMMISSION MR MARTIN 50 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GAS DYNAMICS INC A WHOLESALE GAS DISTRIBUTION CONCERN IN PHOENIX HE HAS HELD EXECUTIVE POSTS AT THE RAMADA HOTEL CHAIN AND AT ITS FORMER MARIE CALLENDAR'S SUBSIDIARY MR BURRELL 65 IS MANAGING GENERAL PARTNER OF BURRELL & CO A SAN FRANCISCO SECURITIES FIRM THE 68YEAROLD MRS HOOD WAS NAMED VICE PRESIDENT A NEW POST SHE HAD BEEN ELSINORE'S PRESIDENT SINCE 1985 AND PRESIDENT OF ITS FOUR QUEENS HOTEL AND CASINO SINCE 1978 SHE WASN'T AVAILABLE TO COMMENT YESTERDAY 9301150086 930115 ANTIGAY LAW GETS DELAYED BY RULING OF COLORADO JUDGE DENVER A STATE DISTRICT COURT JUDGE ANSWERED AN ELEVENTH HOUR PLEA FROM OPPONENTS OF COLORADO'S ANTIGAY CONSTITUTIONAL AMENDMENT GRANTING A TEMPORARY RESTRAINING ORDER THAT KEPT THE LAW FROM TAKING EFFECT AT 1201 THIS MORNING THE JUDGE MADE THE RULING FOLLOWING A FOURDAY HEARING ON A REQUEST BY OPPONENTS TO AMENDMENT TWO FOR A PRELIMINARY INJUNCTION WHICH ALSO WOULD HAVE DELAYED THE EFFECTIVENESS OF THE LAW THE HEARING CONCLUDED LATE YESTERDAY AFTERNOON GIVING THE JUDGE LESS THAN EIGHT HOURS TO MAKE A RULING ON THE PRELIMINARY INJUNCTION IN AN ANGRY ADDRESS FROM THE BENCH THE JUDGE ACCUSED THE PLAINTIFFS IN THE CASE OF BACKING HIM AGAINST A WALL BY NOT MOVING FASTER ON THEIR CASE AGAINST THE AMENDMENT HE SAID HE WILL RECONVENE THE HEARING TODAY AT 4 PM MOUNTAIN STANDARD TIME WHEN HE IS EXPECTED TO GIVE HIS RULING ON THE PRELIMINARY INJUNCTION DURING THE HEARING ATTORNEYS FOR THE CITIES OF BOULDER DENVER AND ASPEN AND EIGHT INDIVIDUAL PLAINTIFFS ARGUED THAT THE AMENDMENT IS UNCONSTITUTIONAL BECAUSE IT SINGLES OUT HOMOSEXUALS TAKING FROM THEM RIGHTS HELD BY OTHERS IN SOCIETY THE STATE OF COLORADO HOWEVER ARGUED THAT THE AMENDMENT MERELY REMOVES A LAYER OF PROTECTION THAT ISN'T AVAILABLE TO OTHER CITIZENS AMENDMENT TWO PASSED IN THE NOV 3 STATEWIDE ELECTION BY A VOTE OF 53 TO 47 THE AMENDMENT SAYS NO STATE OR LOCAL GOVERNMENT OR AGENCY CAN PASS LAWS OR POLICIES THAT PROTECT GAYS LESBIANS AND BISEXUALS FROM DISCRIMINATION THE PASSAGE OF THE AMENDMENT HAS SPAWNED BOYCOTTS OF COLORADO BY SEVERAL GROUPS AND MUNICIPALITIES AROUND THE COUNTRY 9301150085 930115 REVIEW & OUTLOOK EDITORIAL ASIDES HUMAN RIGHTS IN BERLIN THOSE AT THE OUTER LIMITS OF HUMAN RIGHTS ADVOCACY CAN CHALK UP A CONSPICUOUS VICTORY NOW THAT THE BERLIN CONSTITUTIONAL COURT HAS AGREED TO FREE FORMER EAST GERMAN LEADER AND BUILDER OF THE BERLIN WALL ERICH HONECKER TO MOST OF THE REST OF THE CIVILIZED WORLD SUCH A VICTORY CAN ONLY BE VIEWED FOR WHAT IT IS NAMELY A DEFEAT FOR JUSTICE THE INCREASINGLY PROFLIGATE USE OF HUMAN RIGHTS ARGUMENTS TO ABSOLVE CRIMINALS THE INCREASINGLY ELASTIC NOTION OF WHAT A HUMAN RIGHTS VIOLATION IS OWES MUCH TO THE ZEALOTRY AND PUBLICITY MACHINES OF SOME OF THE RIGHTS WATCHERS THE BERLIN COURT TOOK A LOFTILY HUMANE VIEW IN THE CASE OF HONECKER NOW SUFFERING FROM CANCER BUT WHO IN HIS PRIME PRESIDED OVER A POLICE STATE THAT KILLED THOUSANDS TO JAIL HONECKER WOULD VIOLATE HIS FUNDAMENTAL RIGHT TO PROTECTION OF HUMAN DIGNITY WE DON'T DOUBT THAT THESE SAME PEOPLE WOULD SUPPORT BRINGING THE SERBIAN LEADERSHIP TO TRIAL FOR WAR CRIMES AGAINST THE SARAJEVANS THE BERLIN COURT'S PREPOSTEROUS ARGUMENT AT LEAST DEMONSTRATES HOW LOW SERIOUS THOUGHT HAS BEEN BROUGHT IN SOME PARTS OF THE WEST 9301150084 930115 REVIEW & OUTLOOK EDITORIAL ASIDES EARLY CHRISTOPHER WE MAY HATE OURSELVES FOR THIS IN THE MORNING BUT WE HAVE TO DRAW ATTENTION TO THE GREAT AMOUNT OF COMMON SENSE HEARD FROM CLINTON SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER YESTERDAY MR CHRISTOPHER'S FIRST TASK WAS TO MAKE SENSE OF THE PRESIDENTELECT'S STATEMENT TO THE NEW YORK TIMES THAT HE MIGHT BE ABLE TO LIVE WITH A REFORMED SADDAM HUSSEIN HE OFFERED THE FOLLOWING EXEGESIS I AM NOT VERY OPTIMISTIC ABOUT ANY REDEMPTION FOR SADDAM HUSSEIN WHEN YOU READ OF HIS CHARACTER AND THE THINGS HE'S DONE OVER THE YEARS I FIND IT HARD TO SHARE THE BAPTIST BELIEF IN REDEMPTION LATER WHEN ASKED BY SENATOR JESSE HELMS ABOUT A 1977 SPEECH THAT HE GAVE EXPLORING THE NORMALIZATION OF RELATIONS WITH CUBA MR CHRISTOPHER SAID IT IS VERY HARD TO ENVISAGE NORMAL RELATIONS WITH CUBA WITH CASTRO STILL IN PLACE HE ADDED THAT THE SPEECH HAD BEEN OVERLY HOPEFUL PERHAPS EVEN NAIVE POLITICS AND THE THEOLOGY OF SIN AND REDEMPTION ASIDE WHAT COMES THROUGH IN MR CHRISTOPHER'S LANGUAGE IS A SENSE OF JUDGMENT THAT IS BOTH DEFT AND HONEST AS THE NEW TERM BEGINS HERE'S HOPING 9301150083 930115 KAISER ALUMINUM TO REDUCE CAPACITY CITES POWER PROBLEM A WALL STREET JOURNAL NEWS ROUNDUP KAISER ALUMINUM CORP SAID IT WILL TEMPORARILY SHUT DOWN 68000 METRIC TONS OF ANNUAL ALUMINUM CAPACITY AT ITS WASHINGTON STATE SMELTERS AND LAY OFF ABOUT 110 WORKERS IT IS THE LATEST ALUMINUM COMPANY TO DECLARE DROUGHTRELATED CUTBACKS THE MAXXAM INC UNIT'S MOVE FOLLOWS SIMILAR CUTBACKS BY AMAX INC WHICH WILL ALSO CUT 68000 METRIC TONS OF CAPACITY ALUMINUM CO OF AMERICA WHICH WILL TRIM 42000 METRIC TONS ANNUALLY AND BY SMALLER PRODUCERS THE CUTBACKS STEM FROM A DECISION BY THE BONNEVILLE POWER ADMINISTRATION TO CURTAIL FOR SIX WEEKS 25 OF THE POWER IT SUPPLIES TO BIG INDUSTRIAL CUSTOMERS IN THE REGION BECAUSE OF DROUGHT CONDITIONS A TOTAL OF ABOUT 300000 METRIC TONS OF ANNUAL PRODUCTION IS EXPECTED TO BE CLOSED TEMPORARILY OUT OF TOTAL US PRODUCTION OF 41 MILLION TONS AND TOTAL WORLD PRODUCTION OF 157 MILLION TONS BONNEVILLE POWER BASED IN PORTLAND ORE IS A FEDERAL AGENCY THAT TRANSMITS AND SELLS HYDROELECTRIC POWER TO UTILITIES AND OTHER CUSTOMERS AT LEAST SEVEN ALUMINUM COMPANY CUSTOMERS PLAN SUBSTANTIAL CUTS IN PRODUCTION AS A RESULT OF BONNEVILLE'S ACTION SAID JOHN CARR EXECUTIVE DIRECTOR OF DIRECT SERVICE INDUSTRIES AN INDUSTRY CONSORTIUM THAT NEGOTIATES CONTRACTS WITH BONNEVILLE 9301150082 930115 TECHNOLOGY & HEALTH APPLE COMPUTER PROFIT FELL 28 DESPITE FIRSTPERIOD SALES RECORD BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL CUPERTINO CALIF DESPITE REACHING A 2 BILLION RECORD FOR QUARTERLY REVENUE APPLE COMPUTER INC SAW PRESSURE ON PROFIT MARGINS DEPRESS ITS FISCAL FIRSTPERIOD EARNINGS 28 COMPETITIVE PRICE CUTS COUPLED WITH THE COSTS OF INTRODUCING LAPTOP PRODUCTS REDUCED PROFIT FOR THE QUARTER ENDED DEC 25 TO 1613 MILLION OR 133 A SHARE FROM 166 MILLION OR 136 A SHARE A YEAR EARLIER THE RESULTS WERE IN LINE WITH WALL STREET EXPECTATIONS APPLE RELEASED ITS NUMBERS AFTER THE CLOSE OF TRADING YESTERDAY THE COMPANY'S SHARES ROSE 150 TO 65 ON THE OVERTHECOUNTER MARKET ROBUST OVERALL DEMAND FOR PERSONAL COMPUTERS INCLUDING 31 GROWTH IN UNIT SALES OF ALL APPLE'S MACINTOSH COMPUTERS POWERED REVENUE GROWTH OF 74 TO JUST OVER 2 BILLION FROM 186 BILLION GROSS MARGINS DECLINED TO 41 OF NET SALES FROM 44 THE QUARTERLY RESULTS WOULD HAVE BEEN BETTER BUT FOR APPLE'S INABILITY TO MEET DEMAND FOR SOME OF ITS HOTTEST PRODUCTS ACCORDING TO CHARLES WOLF AN ANALYST FOR FIRST BOSTON CORP THAT PENTUP DEMAND IS EXPECTED TO HELP THE CURRENT QUARTER WHICH USUALLY SHOWS A SEASONAL SLUMP FROM THE CHRISTMAS PERIOD IT AUGURS WELL FOR THE MARCH QUARTER MR WOLF SAID I SUSPECT WE WILL SEE ONLY A MODEST SEASONAL DECLINE HE AND OTHER ANALYSTS EXPECT GROWTH TO RESUME IN THE FISCAL SECOND HALF BECAUSE OF SALES MOMENTUM FROM APPLE'S INTRODUCTION IN FEBRUARY OF A POWERFUL LINE OF MACINTOSH COMPUTERS PRICED TO BE MORE COMPETITIVE WITH THE HOTSELLING MACHINES BASED ON INTEL CORP 486 CHIPS APPLE WILL ALSO BENEFIT FROM SALES OF ITS NEWTON PERSONAL DIGITAL ASSISTANT AND A POWERFUL SERVER MACHINE THEY OUGHT TO BE HITTING ON ALL CYLINDERS IN THE SECOND HALF SAID BRUCE LUPATKIN AN ANALYST FOR HAMBRECHT & QUIST SAN FRANCISCO ONE MORE TRANSITIONAL QUARTER AND THEN THINGS START IMPROVING FROM THERE APPLE'S LAPTOP COMPUTER LINEAIDED IN THE QUARTER BY THE DEBUT OF TWO POWER BOOK MODELS AND THE NEW DUO FAMILYCLAIMED STAR BILLING DURING THE PERIOD APPLE SOLD MORE POWERBOOKS IN THE PERIOD THAN IN ANY PRIOR QUARTER THE COMPANY SAID DEMANDDRIVEN SHORTAGES OF KEY COMPONENTS LED TO ORDER BACKLOGS ON SEVERAL PRODUCTS NOTABLY IN THE POWERBOOK AND DUO FAMILIES SAID JOHN SCULLEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE ADDED THAT APPLE DOESN'T EXPECT TO BE ABLE TO MEET DEMAND UNTIL THIS YEAR'S SECOND HALF AN APPLE SPOKESMAN SAID THERE WAS ALSO STRONG DEMAND FOR DESKTOP MACHINES PARTICULARLY NEW LINES THAT INCLUDE OPTICALDISK DRIVES COMPETITIVE DISCOUNTS OF 15 TO 35 ON SOME OF APPLE'S OLDER MACINTOSH MODELS AMID THE ESCALATING PC PRICE WARS TOUCHED OFF AT MIDYEAR HAS BEEN PUTTING A SQUEEZE ON APPLE'S MARGINS FOR SEVERAL QUARTERS IN ADDITION APPLE LAST YEAR BEGAN SELLING A NEW LINE OF LOWCOST PCS THROUGH MASS RETAIL OUTLETS SUCH AS SEARS ROEBUCK & CO WITH ITS MARGINS CAUGHT IN A VISE APPLE SAID IT HAS ENFORCED STRICT COST CONTROLS FORCING OPERATING EXPENSES TO A SEVENYEAR LOW OF 29 OF NET SALES APPLE'S ORDER BACKLOG WAS ONLY PARTLY DUE TO A SURFEIT OF DEMAND IN ADDITION A SPOKESMAN SAID APPLE SUFFERED INADEQUATE DELIVERIES OF SUCH STRATEGIC PARTS AS COMPUTER SCREENS FOR ITS POWERBOOKS 9301150081 930115 FEDERAL EXPRESS PILOTS VOTE TO UNIONIZE BUT FIRM MOVES TO CONTEST THE ELECTION BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP LOST ITS BID TO KEEP US LABOR GROUPS OUT OF ITS RANKS BUT RESPONDED BY CONTESTING ITS PILOTS' DECISION TO UNIONIZE IN A CLOSE VOTE THE AIR LINE PILOTS ASSOCIATION BASED IN WASHINGTON WON REPRESENTATION FOR THE 2279 PILOTS AT THE AIREXPRESS PROVIDER BY A MARGIN OF 146 VOTES ACCORDING TO THE NATIONAL MEDIATION BOARD THE ALPA WON 1015 VOTES AND AN INDEPENDENT PILOTS GROUP CALLED THE UNITED STATES PILOTS ASSOCIATION GARNERED 271 VOTES THE USPA VOTES COUNTED AS PROUNION VOTES AND TIPPED THE SCALE IN THE ALPA'S FAVOR FOR ANY UNION TO WIN IT NEEDED A TOTAL OF 1140 VOTES HOURS AFTER THE VOTE WAS ANNOUNCED HOWEVER THE MEMPHIS TENN COMPANY FILED AN OBJECTION WITH THE MEDIATION BOARD CHARGING THAT THE ELECTION WAS TAINTED BY BOTH UNIONS AND REQUESTING A NEW VOTE THE COMPANY CHARGED THAT ONE OF THE UNIONS MISREPRESENTED THE ELECTION PROCESS PROMPTING SOME PILOTS OPPOSED TO UNIONIZATION TO VOTE FOR IT UNWITTINGLY UNION OFFICIALS SPECULATE THAT FEDERAL EXPRESS WAS REFERRING TO PILOTS WHO VOTED FOR AN INDEPENDENT UNION BECAUSE THEY DIDN'T WANT TO BE REPRESENTED BY THE ALPA THE COMPANY WOULDN'T ELABORATE BUT IT ISN'T CLEAR HOW FAR FEDERAL EXPRESS'S OBJECTIONS MAY GO A GROUP OF PILOTS OPPOSED TO UNIONIZATION ALREADY FILED A SIMILAR COMPLAINT IN DECEMBER SUGGESTING THE PROCESS WAS MISREPRESENTED BUT THE BOARD RULED THAT WASN'T THE CASE THE MEDIATION BOARD WILL DETERMINE BY TUESDAY WHETHER OR NOT THE COMPANY PRESENTED A STRONG ENOUGH CASE TO INVESTIGATE A BOARD SPOKESMAN SAID IF IT DECIDES TO INVESTIGATE CERTIFICATION OF THE UNION WILL BE DELAYED UNTIL THE INQUIRY IS COMPLETED WHICH COULD TAKE ANYWHERE FROM A MONTH TO MORE THAN A YEAR IF THE BOARD DECIDES NOT TO INVESTIGATE IT WILL CERTIFY THE UNION ON TUESDAY THE SPOKESMAN SAID OFFICIALS FROM BOTH UNIONS DENY THAT ANY MISCONDUCT OCCURRED WE DON'T THINK THE PILOTS WERE CONFUSED AT ALL SAID DON WILSON A FEDERAL EXPRESS PILOT AND ALPA ORGANIZER PILOTS HAD NO DOUBT THEY WERE VOTING FOR REPRESENTATION ADDED GARY LOVAN A PILOT AND USPA ORGANIZER WE IN NO WAY EVER TRIED TO MISREPRESENT OR DISTORT THE PROCESS THE COMPANY'S STOCK SHOT UP 2 TO 5625 ON THE NEW YORK STOCK EXCHANGE YESTERDAY BUT ANALYSTS BELIEVED THAT NEWS OF THE VOTE WAS OVERSHADOWED BY A REPORT THAT FEDERAL EXPRESS'S DECEMBER OVERNIGHT PACKAGE VOLUME ROSE SHARPLY AS WELL AS BY A BIG UPTICK IN TRANSPORTATION AND AIRLINE STOCKS SPURRED BY CONFIDENCE IN THE ECONOMIC RECOVERY THE MARKET THEY SAID HAD ANTICIPATED THE UNION VICTORY 9301150080 930115 CAMPBELL SOUP RAISES TAKEOVER BID MOVES TO CONTROL ARNOTTS SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA CAMPBELL SOUP CO HAS A BETTER CHANCE OF WINNING A MAJORITY OF THE SHARES OF AUSTRALIAN COOKIE AND CRACKER MAKER ARNOTTS LTD AFTER RAISING ITS TAKEOVER BID AND DECLARING THE OFFER UNCONDITIONAL BUT A COURT DECISION ALSO ANNOUNCED YESTERDAY CONFIRMS CAMPBELL'S CONTROL OF ARNOTTS IS LIMITED UNLESS IT ACQUIRES 85 OF THE AUSTRALIAN COMPANY OR SUCCEEDS IN OVERTURNING A 1985 AGREEMENT THE NEW SOUTH WALES STATE COURT OF APPEAL UPHELD AN AGREEMENT BETWEEN THE TWO COMPANIES THAT CAMPBELL COULDN'T VOTE MORE THAN 149 OF ARNOTTS' SHARES TO APPOINT DIRECTORS TO THE ARNOTTS BOARD THE DECISION OVERTURNED AN EARLIER COURT RULING THAT THE AGREEMENT WOULD BECOME INVALID WHEN CAMPBELL OWNED 40 OF ARNOTTS CAMPBELL A FOOD PRODUCTS CONCERN IN CAMDEN NJ HAS BEEN A LONGTERM HOLDER OF 33 OF ARNOTTS BUT NOW WANTS TO CONTROL THE COMPANY AND USE IT AS AN ASIAN BASE AFTER YESTERDAY'S COURT RULING CAMPBELL LIFTED ITS OFFER TO 950 AUSTRALIAN DOLLARS US742 A SHARE FROM A880 AND DROPPED A MAJORITY OWNERSHIP CONDITION THE REVISED OFFER VALUES ALL OF ARNOTTS AT A132 BILLION UP FROM A123 BILLION BUT THE AUSTRALIAN GOVERNMENT HAS SAID ARNOTTS MUST STAY LISTED ON THE AUSTRALIAN STOCK EXCHANGE SO CAMPBELL CAN'T BUY 100 ARNOTTS DIDN'T IMMEDIATELY REJECT THE OFFER BUT NOTED THAT IT IS BELOW AN APPRAISAL BY INVESTMENT BANK GRANT SAMUEL & ASSOCIATES LTD WHICH VALUES THE SHARES AT BETWEEN A1078 AND A1132 ADVISERS EXPECT THE ARNOTTS BOARD TO RESPOND TO THE OFFER WITHIN A WEEK 9301150079 930115 CORPORATE FOCUS FIAT FIGHTS TO REGAIN STATURE AS A TOP CAR FIRM IN EUROPE COMPANY PLANS TO CHURN OUT NEW MODELS INVEST IN MODERNIZING PLANTS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL TURIN ITALY FEW PEOPLE ARE MORE AWARE OF FIAT SPA'S FALL FROM GRACE THAN CLEMENTE SIGNORONI AS A TOP STRATEGIC PLANNER FOR FIAT AUTO THE GROUP'S CORE CAR BUSINESS THE TALL WELLDRESSED ITALIAN WATCHED THE PLUNGE BEGIN THREE YEARS AGO AT FIAT ONE OF EUROPE'S BIGGEST CAR MAKERS THE COMPANY IS EXPECTED TO SKID INTO THE RED THIS YEAR WHILE ITS RANKING AMONG EUROPE'S VOLUME PRODUCERS HAS SLIPPED TO FOURTH PLACE AND FIAT IS STILL FALLING OUR EFFORTS WILL ONLY CONVERGE TO REALLY START HELPING US IN THE SECOND HALF OF THIS YEAR MR SIGNORONI CONCEDES SPEAKING IN HIS OFFICE AT FIAT'S TURIN HEADQUARTERS THAT'S WHEN FIAT STARTS CHURNING OUT NEW MODELS AND A MASSIVE INVESTMENT IN MODERNIZING THE COMPANY'S FACTORY NETWORK BEGINS SHOWING MAJOR RESULTS FIAT IS IN A FIGHT FOR SURVIVAL THAT MOST ANALYSTS EXPECT IT TO WIN THE COMPANY IS RICH AND ITS MANAGEMENT DETERMINED TO REGAIN STATURE AS ONE OF EUROPE'S TOP CAR MAKERS AFTER BOUNCING THROUGH THE NEXT ROUGH PATCH PROBABLY THROUGH 1993 THE COMPANY SHOULD START SEEING CLEAR IMPROVEMENTS ON THE BOTTOM LINE IN 1994 FIAT HAS EVERYTHING IT NEEDS TO FIGHT BACK SAYS PETER SCHMIDT AN INDUSTRY CONSULTANT AT AUTOMOTIVE INDUSTRY DATA LTD IN BRITAIN AND IT IS FIGHTING BACK THE QUESTION IS WHAT FIAT WILL ULTIMATELY LOOK LIKE AS A SURVIVOR THE CAR MAKER PROBABLY NEVER AGAIN WILL HOLD THE MARKET SHARE IT ONCE DID ESPECIALLY IN ITALY AND THE COMPANY COULD STILL DECIDE TO FORGE A LINK WITH ANOTHER CAR MAKER AS A WAY OF STRENGTHENING ITS COMPETITIVENESS HARD TIMES ARE ALL AROUND FOR CAR MAKERS EUROPEAN CAR SALES ARE FALLING AND CAR MAKERS ACROSS THE CONTINENT ARE BOLSTERING THEMSELVES FOR RISING JAPANESE COMPETITION FIAT'S CHALLENGE IS OFTEN COMPARED WITH THE DILEMMA FACING GENERAL MOTORS CORP IN THE US A GIANT TURNED HUMBLE AND DESPERATE BY MASSIVE CHANGES IN A ONCESECURE HOME MARKET MR SIGNORONI SAYS THE COMPANY AND ITS PRODUCTS ARE ALREADY MUCH BETTER THAN THEIR REPUTATION IMAGE HE SNIFFS ALWAYS LAGS BEHIND THE REALITY THE REALITY IS ROUGH ENOUGH WHILE OTHER CAR MAKERS WERE CHURNING OUT NEW AND BETTER MODELS IN THE LATE 1980S FIAT LET ITS LINEUP GROW GERIATRIC THE COMPANY'S BREADANDBUTTER UNO MODEL FOR INSTANCE IS MORE THAN SEVEN YEARS OLD WHILE MOST COMPETITORS' MODELS ARE HALF THAT AT ITS PEAK IN THE LATE 1980S FIAT HELD 60 OF THE ITALIAN MARKET THAT FIGURE IS NOW DOWN TO 4335 AND IS LIKELY TO GO LOWER SALES ALSO TOOK A BEATING ELSEWHERE IN EUROPE AFTER SERIOUSLY CHALLENGING VOLKSWAGEN AG FOR VOLUME LEADERSHIP IN THE LATE 1980S FIAT THIS YEAR HAS BEEN PASSED BY GM'S EUROPEAN UNIT AND PSA PEUGEOT CITROEN FIAT IS JUST BARELY HOLDING ONTO NO 4 AHEAD OF FORD MOTOR CO'S EUROPEAN UNIT FIAT OFFICIALS EXPECT A WAVE OF NEW MODELS TO LURE BACK DRIVERS STARTING WITH A NEW UNO TO BE UNVEILED NEXT FALL FIAT WILL REPLACE 18 MODELS BY 1996 DAGMAR BOTTENBRUCH AN AUTO ANALYST AT CREDIT SUISSE FIRST BOSTON IN MILAN SAYS THE COMPANY'S SECRET WEAPON IS ITS DEEP POCKETS FIAT IS ITALY'S LARGEST PRIVATESECTOR INDUSTRIAL CONCERN GROUPING ACTIVITIES AS DIVERSE AS PUBLISHING AND ENGINEERING BUT CARS REMAIN KING THE CONGLOMERATE HAS EARMARKED 40 TRILLION LIRE 292 BILLION FOR INVESTMENT IN THE AUTO BUSINESS THROUGH THE END OF THE DECADE AND IS PONDERING SELLING OFF PERIPHERAL BUSINESSES TO HELP BANKROLL THE EFFORT GIOVANNI AGNELLI THE COMPANY'S 71YEAROLD PATRIARCH HAS VOWED TO LEAVE BEHIND A HEALTHY COMPANY WHEN HE RETIRES IN 1994 AND MR AGNELLI WHO OWNS CONTROLLING INTEREST IN THE GROUP TENDS TO ACCOMPLISH WHAT HE SETS OUT TO DO AT A MEETING OF 1000 TOP AUTO DIVISION MANAGERS IN NOVEMBER THE ELDER MR AGNELLI REPORTEDLY SAID THE COMPANY FACES ONE OF THE MOST DIFFICULT PERIODS IN ITS HISTORY BUT HE ALSO SEES THE FIRM POISED FOR A RECOVERY WHEN THE CAR MARKET SNAPS BACK IN 1994 ONE INTANGIBLE IS ITALY ITSELF THE ITALIAN CAR MARKET WAS LONG EXPECTED TO TURN DOWN NEXT YEAR AND THE SLUMP COULD BE MADE WORSE BY THE COUNTRY'S DOMESTIC AUSTERITY PROGRAM MONEY JUST ISN'T FLOWING THE WAY IT USED TO SAYS ONE INDUSTRY ANALYST AND THAT WILL HIT AUTO SALES HARDWHICH MEANS IT WILL HIT FIAT DOUBLY HARD MR SIGNORONI THE STRATEGIC PLANNER SAYS FIAT SEES FUTURE GROWTH IN CAR SALES CONCENTRATED IN EASTERN AND SOUTHERN EUROPE NOT THE SATURATED MARKETS OF WESTERN EUROPE SO WE'RE POSITIONING OURSELVES TO BE STRONG IN THE MARKETS OF THE FUTURE HE SAYS FIAT ALSO FIGURES IT CAN RIDE OUT THE STORM OF JAPANESE COMPETITION BETTER THAN MANY OF ITS COMPETITORS JAPANESE CAR MAKERS PRESSED TO KEEP UNIT SALES FROM GROWING TOO RAPIDLY IN EUROPE ARE LIKELY TO CONCENTRATE ON THE UPPER END OF THEIR PRODUCT RANGE WHERE PROFIT MARGINS ARE FATTEST FIAT BY CONTRAST FIGURES IT WILL STAY FIRMLY IN THE MID TO LOWEREND OF THE MARKET THE CLEAREST PROOF OF THIS IS THE NEW CINQUECENTO A MINICAR PRODUCED IN POLAND THAT IS SELLING WELL IN ITALY ONE COMMON CRITICISM IS THAT FIAT HAS TOO MUCH OF ITS PRODUCTION CONCENTRATED IN COSTLY NORTHERN ITALIAN FACTORIES SO IN RECENT YEARS THE COMPANY HAS BUILT NEW CAPACITY IN LOWCOST LOCATIONS SUCH AS TURKEY AND SOUTHERN ITALY WHERE GOVERNMENT SUBSIDIES HELP CONTAIN COSTS THE COMPANY IS ALSO RESHAPING ITS EXISTING FACTORIES LIKE MANY OTHER EUROPEAN AND US CAR COMPANIES FIAT ONCE THOUGHT AUTOMATION WAS THE KEY TO JAPANESESTYLE SUCCESS BUT NOW THE ITALIAN AUTO MAKER IS EMBRACING THE LATEST TREND SWEEPING THE GLOBAL AUTO INDUSTRY SOCALLED LEAN PRODUCTION ALBERTO PIANTA HEAD OF PRODUCTION FOR FIAT AUTO YANKS OUT A SET OF RINGED BINDERS TO ILLUSTRATE THE INDUSTRIAL REVOLUTION TAKING PLACE IN FIAT'S 19 ITALIAN FACTORIES THE ILLUSTRATIONS SHOW SUCH THINGS AS FIAT'S 70000 ITALYBASED AUTO WORKERS BEING GROUPED INTO TEAMS AS WELL AS RECONSIDERATION OF EXTENSIVE AUTOMATION AT FIAT'S SPRAWLING NEW ASSEMBLY PLANT IN THE SOUTHERN ITALIAN CITY OF MELFI FOR INSTANCE THE COMPANY WILL STILL AUTOMATE SPOT WELDING BUT USE ONLY 180 ROBOTS COMPARED WITH 250 USED FOR THE SAME FUNCTION IN A COMPARABLE OLDER FACTORY SOME WONDER WHETHER THE COMPANY WILL ULTIMATELY TURN TO A FOREIGN PARTNER FOR HELP FIAT TALKED SERIOUSLY TO FORD IN THE 1980S ABOUT SOME FORM OF LINKUP AND MORE RECENTLY THE COMPANY HAS EYED FRANCE'S PEUGEOT RUMORS ALSO HAVE CIRCULATED SUGGESTING FIAT WAS ABOUT TO SIGN A STRATEGIC ALLIANCE WITH JAPAN'S TOYOTA MOTOR CORP THE MURMURS WERE DENIED IN TURIN BUT THEIR PREVALENCE PROMPTED MR AGNELLI TO ANGRILY PRONOUNCE MY FIAT WILL NEVER BE JAPANESE BUT FIAT'S COMEFROMBEHIND STRATEGY IS TEACHING EVEN THE ITALIANS NEVER TO SAY NEVER MR SIGNORONI THE STRATEGIC PLANNER SAYS NO FOREIGN PARTNER CAN OFFER FIAT WHAT IT NEEDS TO DEAL WITH ITS CURRENT PROBLEMS BUT IN THE LONGER TERM HE CONCEDES IT COULD BE CONSIDERED MAJOR BUSINESSES FIAT SPA IS ITALY'S LARGEST PRIVATESECTOR INDUSTRIAL CONGLOMERATE GROUPING ACTIVITIES RANGING FROM AUTOMOBILES TRUCKS ENGINEERING AND RETAILING TO INSURANCE PUBLISHING AND RAILWAY EQUIPMENT FIAT SELLS UNDER THE NAMES FIAT ALFAROMEO LANCIA FERRARI AND INNOCENTI 9301150078 930115 LEISURE & ARTS BOOKSHELF INVESTING WISELY BY STANLEY W ANGRIST NOBODY LIKES TO PAY STOCKBROKER'S COMMISSIONS AND FOR A GOOD REASON THE MORE YOU PAY YOUR BROKER THE LESS YOU HAVE TO INVEST BUT MOST INVESTORS ARE UNAWARE THAT THEY CAN BUY STOCKS AND SOME US TREASURY SECURITIES WITHOUT PAYING ANY COMMISSIONS AT ALL CHARLES CARLSON'S BUYING STOCKS WITHOUT A BROKER MCGRAWHILL 367 PAGES 2995 TELLS YOU IN GREAT DETAIL HOW TO PERFORM THIS BIT OF INVESTMENT WIZARDRY THE TRICK IS NOT NEW IT'S JUST NOT WELLPUBLICIZED THE VEHICLE FOR THIS KIND OF INVESTING GOES BY THE UNPROMISING ACRONYM DRIPS DIVIDEND REINVESTMENT PROGRAMS THESE PROGRAMS ARE OFFERED BY MORE THAN 900 PUBLIC COMPANIES AND ALLOW YOU TO BUY STOCK IN THESE COMPANIES ONCE YOU HAVE MADE AN INITIAL PURCHASE THROUGH YOUR BROKER BUT SOMETIMES THAT INITIAL PURCHASE CAN BE AS SMALL AS ONE SHARE IN ADDITION TO ALLOWING THE REINVESTMENT OF DIVIDENDS COMMISSIONFREE MANY OF THESE COMPANIES PERMIT ADDITIONAL PURCHASES OF AS LITTLE AS 10 A MONTH IN SOME CASES AND AS MUCH AS 20000 A MONTH IN OTHERS COMMISSIONFREE THE ICING ON THIS CAKE IS THAT MORE THAN 100 OF THE DRIP COMPANIES WILL SELL YOU THIS STOCK AT A DISCOUNT TO THE MARKET PRICE THAT CAN BE AS LARGE AS 10 MR CARLSON WISELY POINTS OUT THAT YOU SHOULDN'T RUN OUT AND BUY STOCK IN A COMPANY JUST BECAUSE IT OFFERS A DRIP STOCK PURCHASED WITHOUT COMMISSIONS IN A COMPANY GOING NOWHERE EVEN AT A DISCOUNT IS STILL NO BARGAIN STILL FOR INVESTORS WHO WANT TO MINIMIZE THEIR INVESTMENT OVERHEAD THIS IS A GOOD BOOK TO START WITH BECAUSE IT PROVIDES YOU WITH A TABLE OF THE COMPANIES WITH DRIPS DESCRIBES THE DETAILS OF THEIR PLANS AND GIVES YOU PHONE NUMBERS AND ADDRESSES THE LIST IS IMPRESSIVE AND RANGES FROM PHARMACEUTICAL GIANT PFIZER INC TO THE NOTSOBIG UTILITY GREEN MOUNTAIN POWER CORP KEEP IN MIND THAT FOR BOTH ACCOUNTS THE INVESTOR MUST SHELL OUT 33 TO THE GOVERNMENT THE ONLY DIFFERENCE BETWEEN THEM IS THAT WHEN THE TAXES ARE PAID EITHER ANNUALLY OR AT THE END OF 25 YEARS MR THOMSETT SHOWS READERS HOW TO CALCULATE THEIR BREAKEVEN RETURNS AFTER ACCOUNTING FOR BOTH INFLATION AND TAXES THOUGH INFLATION IS LOW TODAY IT WILL NOT NECESSARILY ALWAYS BE SO AND INVESTORS MUST BE CONSTANTLY AWARE OF HOW IT AND TAXES CAN NIBBLE AWAY AT WHAT LOOKS LIKE AN ATTRACTIVE RETURN FOR EXAMPLE SUPPOSE YOU HAVE BOUGHT A ONEYEAR CERTIFICATE OF DEPOSIT THAT PAYS 4 BECAUSE YOU BELIEVE IT WILL PUT YOU MARGINALLY AHEAD OF THE TWIN RETURNKILLERS OF TAXES AND INFLATION IF YOU LIVE IN A STATE IN WHICH THE TOTAL OF FEDERAL STATE AND LOCAL MARGINAL INCOME TAXES IS AT LEAST 33 AND IF YOU ASSUME THAT INFLATION IS 3 THEN ACCORDING TO MR THOMSETT YOU WILL NEED TO EARN 448 IN ORDER TO PRESERVE YOUR PURCHASING POWER CLEARLY A 4 CD HAS A REAL AFTERTAX AFTERINFLATION RETURN OF ABOUT A NEGATIVE ONEHALF PERCENT A YEAR INVESTORS WHO WANT TO DEFER TAXES UNTIL RETIREMENT HAVE A NUMBER OF STRATEGIES THEY CAN EMPLOY INCLUDING DEFERRED ANNUITIES SUCH INVESTMENTS ARE FREE FROM THE LIMITATIONS OF IRAS AND ALLOW CONSIDERABLE FLEXIBILITY IN THE TYPE OF INVESTMENTS USED MR THOMSETT PROVIDES READERS WITH A LIST OF WHAT TO LOOK FOR WHEN SHOPPING FOR ANNUITIES THOUGH THE ADVANTAGES HAVE BEEN GREATLY REDUCED BY RECENT TAX LEGISLATION THERE ARE STILL SOME TAX BENEFITS TO BE HAD FROM REAL ESTATE INVESTMENTS HOWEVER THIS AREA IS SUFFICIENTLY COMPLEX THAT A PRUDENT INVESTOR WOULD SEEK PROFESSIONAL ADVICE BEYOND WHAT MR THOMSETT OFFERS IN THIS BOOK MANY PEOPLE LIKE TO PLACE THEIR INVESTIBLE FUNDS INTO ASSETS OTHER THAN STOCKS AND REAL ESTATE IS THERE ANYWAY FOR THEM TO SAVE MONEY ON SUCH INVESTMENTS MARK SKOUSEN A LONGTIME WRITER ON INVESTING TOPICS SAYS THERE IS IN CROOGE INVESTING DEARBORN FINANCIAL 145 PAGES 1995 HE LISTS 100 TIPS THAT COULD SAVE YOU BIG BUCKS ON EVERYTHING FROM MONEY MARKET FUNDS TO LIFE INSURANCE TO PRECIOUSMETAL INVESTING FOR EXAMPLE HE NOTES THE PITFALLS OF INVESTING IN ALL TYPES OF COLLECTIBLES HE POINTS OUT THAT IF YOU BUY MANUFACTURED LIMITEDEDITION COLLECTIBLES SUCH AS COINS PLATES AND ARTWORK YOU ARE ASKING FOR A HOSING SUCH OBJECTS ARE MANUFACTURED ON ASSEMBLY LINES BY PROFESSIONAL DIRECTMARKETING FIRMS AND ARE OVERPRICED BY ANY STANDARD MR SKOUSEN ALSO CITES COINCOLLECTION NEWSLETTER PRICES THAT REVEAL THAT MORE THAN 90 OF THE NEW ISSUES SOLD BY THE US MINT HAVE FALLEN BELOW THEIR INITIAL OFFERING PRICE WITHIN A FEW YEARS OF THEIR MINTING HE SAYS THAT AUCTIONS ARE THE BEST PLACES TO BUY COLLECTIBLES PROVIDING YOU DON'T GET CAUGHT UP IN AUCTION FEVER MR SKOUSEN ALSO PROVIDES SOME GOOD ADVICE ON WHO SHOULD BUY LIFE INSURANCE AND HOW TO GO ABOUT IT HE POINTS OUT THAT MOST YOUNG PEOPLE WITHOUT DEPENDENTS MARRIED DUALINCOME COUPLES WITHOUT CHILDREN AND OLDER PEOPLE WHOSE CHILDREN ARE GROWN AND SELFSUPPORTING SHOULD WORK TO STAY OUT OF THE CLUTCHES OF LIFEINSURANCE SALESPEOPLE BUT IF YOU DON'T FIT IN ANY OF THOSE CATEGORIES MR SKOUSEN LISTS THE NAMES AND PHONE NUMBERS OF INSURANCE QUOTE SERVICES THAT WILL PROVIDE PRICE QUOTES ON THE LEAST EXPENSIVE POLICIES FROM HIGHLY RATED INSURANCE COMPANIES IT'S ALL PART OF THE SCROOGE PHILOSOPHY WHICH INCLUDES LOOKING FOR NEW TRENDS AND OPPORTUNITIES AHEAD OF THE CROWD AND AVOIDING CONSUMER DEBT LIKE THE PLAGUE BY PAYING IN CASH WHENEVER POSSIBLE AS YOU CAN SEE MR SKOUSEN WILL NEVER BE ELECTED TO THE ALLAMERICAN PHILOSOPHY TEAM BUT HIS THOUGHTS MIGHT STILL SAVE YOU SOME MONEY 9301150077 930115 TECHNOLOGY & HEALTH BIG HEALTH CONCERNS AGREE TO DEVELOP DATA SYSTEM TO GAUGE QUALITY OF CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL THIRTY MAJOR HEALTH INSURERS AND MANAGEDCARE COMPANIES SAID THEY AGREED TO DEVELOP A COMMON DATA SYSTEM THAT WILL ENABLE EMPLOYERS AND CONSUMERS TO COMPARE THE QUALITY OF CARE THEY DELIVER IF IT SUCCEEDS THE EFFORT WILL PROVIDE A MAJOR TOOL FOR OVERHAULING THE US HEALTHCARE SYSTEM INFORMATION CONSUMERS CAN USE TO CHOOSE HEALTH PLANS WITH QUALITY TRACK RECORDS AND THAT DOCTORS HOSPITALS AND OTHER PROVIDERS CAN USE TO IMPROVE THEIR PERFORMANCE UNLIKE STATE AND FEDERAL PROJECTS THAT PUBLISH HOSPITAL DEATH RATES THIS INITIATIVE WILL FOCUS ON PREVENTIVE MEASURES SUCH AS RATES OF CHILDHOOD IMMUNIZATION AND MAMMOGRAPHY THAT MAY INDICATE HOW WELL A PLAN MAINTAINS THE HEALTH OF ITS MEMBERS INITIAL MEASURES ARE EXPECTED TO BE DECIDED BY MARCH AND SOME INFORMATION WILL BE MADE PUBLIC NEXT YEAR BUT DEVELOPING RELIABLE DATA IS A COMPLEX TASK IT IS LIKELY TO TAKE SEVERAL YEARS TO DEVELOP A REPORT CARD THAT COMPARES PLANS ACROSS A COMPREHENSIVE SET OF MEASURES THE INITIATIVE IS BACKED BY MAJOR EMPLOYERS INCLUDING XEROX CORP BANKAMERICA GENERAL ELECTRIC CO FORD MOTOR CO AND CHRYSLER CORP COMPANIES THAT ARE CONSIDERED LEADERS IN CORPORATE EFFORTS TO CONTROL SOARING HEALTH COSTS THE MANAGEDCARE COMPANIES IN THE PROJECT PROVIDE CARE FOR MORE THAN 55 MILLION AMERICANS MANAGEDCARE PROVIDERS WORK WITH SPECIFIC GROUPS OF DOCTORS AND HOSPITALS OFTEN UNDER DISCOUNTED CONTRACTS IN ORDER TO DELIVER CARE MORE COSTEFFECTIVELY DATA ON THE QUALITY OF CARE ARE LIKELY TO BE REQUIRED UNDER ANY NATIONAL HEALTH CARE PROGRAM AND THE ANNOUNCEMENT OF THE EFFORT IS CALCULATED TO STAKE OUT A PRIVATESECTOR APPROACH FOR DEVELOPING THE INFORMATION CUSTOMERS AND PROVIDERS TOGETHER CAN WORK MORE EFFECTIVELY TO ACHIEVE QUALITY THAN A REGULATORY APPROACH SAID DR JOHN LUDDEN MEDICAL DIRECTOR OF THE HARVARD COMMUNITY HEALTH PLAN ONE OF THE PARTICIPANTS DETAILS OF THE PROPOSAL WERE SENT TO PRESIDENTELECT CLINTON THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE A WASHINGTONBASED COALITION OF EMPLOYERS HEALTH PLANS AND CONSUMERS IS WORKING ON THE MEASURES AND WOULD ALSO DEVELOP A SYSTEM TO COLLECT DATA FROM THE PLANS AND AUDIT THE RESULTS TO ASSURE THEIR RELIABILITY DR DON NIELSEN QUALITY CONSULTANT FOR PERMANENTE MEDICAL GROUP A UNIT OF KAISER PERMANENTE SAID THAT IN ADDITION TO IMMUNIZATION AND MAMMOGRAPHY INITIAL MEASURES WILL LIKELY INCLUDE RATES FOR CHOLESTEROL SCREENING CAESAREANSECTION BIRTHS AND PRENATAL HEALTH VISITS IN THE FIRST TRIMESTER OF PREGANANCY THE INITIATIVE IS LIKELY TO INCREASE PRESSURE ON HEALTH PLANS TO DEVELOP SYSTEMS TO PRODUCE SUCH INFORMATION EVEN PARTICIPANTS IN THE PROJECT DIFFER SIGNIFICANTLY IN WHAT INFORMATION THEY CAN COME UP WITH TO DEMONSTRATE QUALITY CARE IF YOU DON'T HAVE THE DATA TO PROVIDE TO THE PUBLIC SAYS DR LUDDEN YOU PROBABLY DON'T HAVE THE DATA TO USE TO IMPROVE THE QUALITY OF CARE DR LUDDEN SAID PARTICIPATING PLANS HAVE A LOT OF ANXIETY ABOUT GOING PUBLIC WITH DATA EVERYBODY IS AFRAID THEY'RE GOING TO LOOK BAD IN SOME DIMENSIONS BUT HE ADDED EMPLOYERS IN THE PROJECT HAVE MADE IT EXTREMELY CLEAR THAT IT HAS TO HAPPEN OTHER PARTICIPANTS IN THE PROJECT INCLUDE AETNA LIFE & CASUALTY CO UNITED HEALTHCARE CORP US HEALTHCARE INC AND THE BLUE CROSS & BLUE SHIELD ASSOCIATION 9301150076 930115 LUJAN DEFERS KEY DECISION ON NORTHERN SPOTTED OWL WASHINGTON INTERIOR SECRETARY MANUEL LUJAN DEFERRED AN IMPORTANT DECISION ON THE NORTHERN SPOTTED OWL OFFICIALLY HANDING THE HOTLY CONTESTED ISSUE OVER TO THE CLINTON ADMINISTRATION ALSO MR LUJAN WITHDREW A PROPOSED POLICY CHANGE AIMED AT MAKING IT LESS ATTRACTIVE FOR CONSERVATION GROUPS TO BUY LAND AND SELL IT TO THE GOVERNMENT MR LUJAN SAID HE WILL SEEK ADDITIONAL COMMENT ON THE SOCALLED RECOVERY PLAN FOR THE OWL LEAVING APPROVAL OF A FINAL PLAN TO THE NEW ADMINISTRATION THE PROPOSED RECOVERY PLAN REQUIRED BY LAW IS AIMED AT ENSURING THE LONGTERM SURVIVAL OF THE THREATENED SPECIES MR LUJAN SAID HE TOOK THE ACTION TO PROVIDE THE BEST POSSIBLE INFORMATION FOR MR CLINTON TO USE AT A FOREST SUMMIT SCHEDULED FOR LATER THIS YEAR IN ABANDONING THE LANDACQUISITION PROPOSAL MR LUJAN SAID HE IS ASKING THE INTERIOR DEPARTMENT'S INSPECTOR GENERAL TO MAKE ADDITIONAL AUDITS TO DETERMINE IF TAXPAYERS ARE BEING HURT BY THE LAND SALES AND WHETHER THE TRANSACTIONS DISTORT FEDERAL LANDACQUISITION PRIORITIES UNDER A TYPICAL ARRANGEMENT A NONPROFIT GROUP BUYS LAND WHEN FEDERAL FUNDS AREN'T AVAILABLE FOR THE PURCHASE LATER THE FEDERAL GOVERNMENT BUYS THE LAND FROM THE GROUP 9301150075 930115 JAPAN AIR IS DELAYING BOEING JETS DELIVERY JAPAN AIR LINES SAID IT WILL DELAY DELIVERY OF 25 BOEING 747400 JETLINERS SCHEDULED FOR DELIVERY THROUGH 1998 A DEVELOPMENT THAT DARKENS THE OUTLOOK FOR OUTPUT OF THE PLANES BY BOEING CO JAL WHICH IS WORKING TO COUNTER THE ILL EFFECTS OF THE AIRLINE RECESSION IN WESTERN MARKETS SAID IT OPERATES 25 OF THE 747400 AIRLINERS AND HAS ANOTHER 26 OF THE JETS ON FIRM ORDER WITH 29 OPTIONS ON FUTURE PURCHASES THE CARRIER PLANS EVENTUALLY TO OPERATE A 747400 FLEET OF 80 JETS THE DEVELOPMENT CAN'T BE GOOD FOR SEATTLEBASED BOEING BUT THE PRECISE EFFECT ON THE COMPANY'S PRODUCTION ISN'T CLEAR BOEING HAD ANNOUNCED ONLY 15 OUTSTANDING FIRM ORDERS FROM JAL FOR THE JETS THE MANUFACTURER ALSO HAD ANNOUNCED NO JAL ORDERS FOR TWINENGINE 767 AIRCRAFTYET THE CARRIER SAID IT IS PLACING ORDERS FOR FIVE OF THOSE JETS BOEING MAKES FIVE OF THE 747S ITS MOST PROFITABLE MODEL EVERY MONTH AT ITS EVERETT WASH PLANT NORTH OF SEATTLE COMPANY OFFICIALS WON'T SAY WHETHER A CUT IN THE PRODUCTION RATE IS PLANNED BUT THEY HAVE SAID SOME EXPECTED EFFECTS OF THE RECESSION ALREADY HAVE BEEEN FACTORED INTO THE CURRENT PACE OF PRODUCTION OTHER LARGE CARRIERS SUCH AS UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES HAVE YET TO DISCLOSE THE SIZE OF A NEW ROUND OF ORDER DEFERRALS OR CANCELLATIONS THAT COULD AFFECT BOEING'S PRODUCTION 9301150074 930115 POOR FAMILIES FALL APART MORE OFTEN THAN AFFLUENT WASHINGTON POOR TWOPARENT FAMILIES ARE TWICE AS LIKELY AS MORE AFFLUENT FAMILIES TO BREAK APART ACCORDING TO A CENSUS BUREAU REPORT THE REPORT IS THE BUREAU'S FIRST STUDY ON THE FORMATION AND DISSOLUTION OF US FAMILIES AND SUGGESTS A BIG LINK BETWEEN A FAMILY'S ECONOMIC CONDITION AND ITS ABILITY TO STAY TOGETHER THE REPORT COVERS THE PERIOD FROM 1983 TO 1988 WHEN FAMILIES FALL INTO POVERTY IT CREATES STRESS THERE ARE ARGUMENTS ABOUT HOW TO SPEND MONEY HOW TO MEET THE MORTGAGE BUY FOOD AND BUY CLOTHES SAID DONALD HERNANDEZ WHO AUTHORED THE REPORT ENTITLED WHEN HOUSEHOLDS CONTINUE DISCONTINUE AND FORM THE CENSUS BUREAU BASES ITS DEFINITION OF POVERTY ON INCOME LEVEL AND FAMILY SIZE FOR EXAMPLE IN 1991 AFTER ADJUSTMENTS FOR INFLATION A FAMILY OF FOUR WHOSE INCOME FELL BELOW 13924 WAS CONSIDERED POOR FOR BLACK TWOPARENT FAMILIES THE DISSOLUTION RATE WAS 21 FOR POOR FAMILIES VS 11 FOR SUCH FAMILIES NOT IN POVERTY THERE WAS NO STATISTICAL DIFFERENCE BETWEEN THE DISSOLUTION RATES OF HISPANIC FAMILIES IN AND OUT OF POVERTY THE REPORT ALSO SAID THAT POOR BLACK TWOPARENT FAMILIES WERE TWOTHIRDS MORE LIKELY TO FALL APART WITHIN TWO YEARS AFTER THEY FORMED THAN POOR WHITE TWOPARENT FAMILIES WHITE FAMILIES FALL APART ROUGHLY 7 OF THE TIME AND BLACK FAMILIES 12 9301150073 930115 LOTUS ALLEGES BORLAND AGAIN HAS VIOLATED SOFTWARE COPYRIGHTS BOSTON LOTUS DEVELOPMENT CORP CHARGED THAT BORLAND INTERNATIONAL INC IS AGAIN VIOLATING LOTUS COPYRIGHTS IN ITS NEWEST SOFTWARE PRODUCTS BORLAND WHICH SAID LAST AUGUST THAT IT REMOVED THE INFRINGING FEATURE FROM ITS PRODUCTS INSTEAD EMBEDDED AN EDITED PHANTOM 123 FEATURE INTO ITS CURRENT PRODUCTS THAT VIOLATES COPYRIGHTS ON LOTUS'S 123 SPREADSHEET LOTUS CLAIMED IN A MOTION BEFORE US DISTRICT JUDGE ROBERT E KEETON HERE THE JUDGE AGREED TO MAKE THE ISSUE PART OF THE LONGRUNNING AND CLOSELY WATCHED COPYRIGHT CASE IN JULY JUDGE KEETON RULED THAT BORLAND HAD ILLEGALLY COPIED PORTIONS OF LOTUS'S 123 PROGRAM WHICH HAD ONCE DOMINATED THE 1 BILLION SPREADSHEET MARKET IN ITS COMPETING QUATTRO PRO PRODUCT BUT SOME ISSUES REMAINED TO BE DECIDED IN THE CASE INCLUDING DAMAGES BORLAND BASED IN SCOTTS VALLEY CALIF SAID THE NEW VERSION OF ITS SPREADSHEET DOESN'T VIOLATE LOTUS COPYRIGHTS IT SAID LOTUS INTRODUCED ITS LATEST ALLEGATION SOLELY FOR COMMERCIAL PURPOSES TO HURT SALES OF BORLAND PRODUCTS BORLAND IS ANXIOUS TO GET THE CASE RESOLVED BECAUSE IT BELIEVES IT WILL WIN THE CASE ON APPEAL SINCE SEVERAL APPEALS COURTS HAVE RECENTLY TAKEN LESS RESTRICTIVE VIEWS IN SOFTWARE COPYRIGHT CASES THE FEATURE AT ISSUE IS BORLAND'S MACRO KEY READER A DATA FILE INCLUDED WITH QUATTRO INTENDED TO HELP USERS FAMILIAR WITH LOTUS COMMANDS AND WHO HAVE WRITTEN ROUTINES CALLED MACROS UNDER LOTUS 123'S PROGRAMMING LANGUAGE THE KEY READER WAS INCLUDED TO MAKE QUATTRO COMPATIBLE WITH MACROS THAT USERS WROTE UNDER 123 9301150072 930115 ALLSTATE IS SUSPENDING WRITING OF POLICIES FOR FLORIDA HOMES NORTH BROOK ILL ALLSTATE INSURANCE CO SAID IT WOULD INDEFINITELY STOP WRITING NEW HOMEOWNERS INSURANCE POLICIES IN FLORIDA FOLLOWING THE LEAD OF SEVERAL OTHER COMPANIES ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO HAD A LOSS OF 25 BILLION ON HURRICANE ANDREW THE COMPANY SAID IT COULDN'T KEEP UP WITH ALL THE DEMAND FOR INSURANCE FROM HOMEOWNERS WHO COULDN'T FIND INSURANCE ELSEWHERE IT WILL CONTINUE TO RENEW EXISTING POLICIES NINE INSURERS HAVE FAILED IN FLORIDA AND SEVERAL OTHERS HAVE STOPPED WRITING HOMEOWNERS INSURANCE IN THE STATE IN ADDITION STATE FARM MUTUAL AUTOMOBILE INSURANCE CO BLOOMINGTON ILL FLORIDA'S LARGEST INSURER IS MAKING AN EFFORT TO WRITE FEWER POLICIES TO COPE WITH THE SHORTAGE OF INSURANCE THE STATE HAS SET UP A GOVERNMENT FUND TO INSURE HOMEOWNERS WHO CAN'T GET COVERAGE ANYWHERE ELSE INDUSTRY EXPERTS PREDICT AS MANY AS 500000 HOMEOWNERS WILL GET THEIR INSURANCE FROM THE STATE SEPARATELY STANDARD & POOR'S CORP CITING 17 BILLION IN INSURANCE COMPANY LOSSES FROM HURRICANES ANDREW AND INIKI SAID THE AVAILABILITY OF REINSURANCE AGAINST CATASTROPHES HAS EVAPORATED IT SAID THERE IS NO MORE THAN 300 MILLION IN COVERAGE AVAILABLE FOR ANY COMPANY WHICH OBVIOUSLY ISN'T ENOUGH GIVEN THAT MANY INSURANCE COMPANIES HAD MORE THAN 1 BILLION IN LOSSES ON ANDREW REINSURANCE PRICES HAVE ALSO SOARED FOR BIG INSURERS THE EFFECTS OF THE REINSURANCE CRUNCH WILL BE RELATIVELY MINOR BUT SMALL REGIONAL INSURERS FORCED TO REDUCE THEIR EXPOSURE TO HURRICANE LOSSES IN THE ABSENCE OF AFFORDABLE REINSURANCE WILL WRITE FEWER POLICIES S&P SAID S&P SAID THE LOSSES FROM ANDREW WILL NOT BE ENOUGH TO IMMEDIATELY TURN THE CYCLE THAT HAS DRIVEN DOWN COMMERCIAL INSURANCE RATES SINCE 1987 S&P'S OPINION RUNS COUNTER TO THAT OF MANY WALL STREET STOCK ANALYSTS 9301150071 930115 KNOXVILLE TENN RANKS FIRST IN MOVERS' SURVEY MIAMI KNOXVILLE TENN WAS THE MOST POPULAR METROPOLITAN AREA FOR PEOPLE WHO MOVED LAST YEAR ACCORDING TO A SURVEY BY THE NATION'S SECONDLARGEST CONSUMER TRUCKRENTAL FIRM THE SURVEY BY THE TRUCK RENTAL UNIT OF MIAMIBASED RYDER SYSTEM INC RANKED CITIES WITH POPULATIONS AT LEAST 100000 BY THE RATIO OF PEOPLE MOVING IN TO PEOPLE MOVING OUT KNOXVILLE WHICH HAD 41 MORE PEOPLE MOVING IN THAN OUT WAS FOLLOWED BY HUNTSVILLE ALA RENO NEV BOISE IDAHO AND CHATTANOOGA TENN THE SURVEY WAS BASED ON 15000 TOTAL MOVES POPULATION GROWTH IN KNOXVILLE LAST YEAR WAS HARDLY EXPLOSIVE AT AN ESTIMATED 1 BUT THE CITY HAS GAINED JOBS IN SERVICES SUCH AS TELEMARKETING AND THE UNIVERSITY OF TENNESSEE SAID ITS ENROLLMENT INCREASED 2 AT ITS MAIN CAMPUS IN KNOXVILLE RYDER SAID THE PRIMARY SOURCE OF NEW KNOXVILLE RESIDENTS WAS NASHVILLE TENN WHICH RANKED 18TH AS A DESTINATION RYDER OFFICIALS SAID THE DEMOGRAPHIC PROFILE OF DOITYOURSELF MOVERS IS SIMILAR TO THAT OF ALL MOVERS BUT TILTS TOWARD YOUNG ADULTS AMONG ALL CITIES CLARKSBURG WV RANKED HIGHEST IN RYDER'S SURVEY WITH 59 MORE PEOPLE MOVING IN THAN OUT LAST YEAR WASHINGTON DC WAS THE PRIMARY SOURCE OF ITS NEW RESIDENTS POSSIBLY BECAUSE THE FEDERAL BUREAU OF INVESTIGATION IS MOVING ITS FINGERPRINT CENTER TO CLARKSBURG FROM WASHINGTON 9301150070 930115 LEISURE & ARTS THEATER BULGAKOV BROUGHT TO LIFE SURREALISTIC SHAW BY EDWIN WILSON CAMBRIDGE MASS THE BRILLIANT AND VISCERALLY INDEPENDENT NOVELIST AND PLAYWRIGHT MIKHAIL BULGAKOV SPENT A PROFESSIONAL LIFETIME PLAYING CAT AND MOUSE WITH JOSEPH STALIN AND HIS ARTS CONTROLLERS PART OF HIS FRUSTRATION CAME FROM HIS YEARS IN THE EARLY 1930S AT THE MOSCOW ART THEATER WHICH HE LEFT IN 1936 IN THE REMAINING FOUR YEARS OF HIS LIFE HIS HEALTH DETERIORATED RAPIDLY HE WAS ABLE HOWEVER TO COMPLETE HIS INSPIRED NOVEL THE MASTER AND MARGARITA NOW A CLASSIC OF RUSSIAN LITERATURE AND TO WORK ON ANOTHER NOVEL ABOUT HIS YEARS WITH THE MOSCOW ART THEATER THE INCOMPLETE THEATER NOVEL REMAINED UNPUBLISHED UNTIL 1965 THE MASTER AND MARGARITA UNTIL 1966 BLACK SNOW A DRAMATIZATION BY KEITH DEWHURST OF THE THEATER NOVEL IS NOW HAVING ITS AMERICAN PREMIERE AT THE AMERICAN REPERTORY THEATRE ART IN THE PRODUCTION THE BRITISH TEAM OF DIRECTOR RICHARD JONES AND DESIGNER ANTONY MCDONALD HAVE GIVEN FULL RANGE TO THE FRANTIC COMEDY AND THE RAZORSHARP SATIRE OF BULGAKOV IT HELPS IF AUDIENCE MEMBERS KNOW SOMETHING ABOUT THE MOSCOW ART THEATER BECAUSE ITS CHIEF FIGURES ARE THE SUBJECTS OF BLACK SNOW THE HERO OF THE PLAY IS A DESPERATE YOUNG WRITER MAKSUDOV DEREK SMITH BULGAKOV'S SURROGATE CHIEF AMONG THE MOSCOW ART LUMINARIES IS IVAN VASILYEVICH ALVIN EPSTEIN A STANDIN FOR THE VENERABLE KONSTANTIN STANISLAVSKY TO SEVERAL GENERATIONS OF AMERICANS STANISLAVSKY WAS A THEATRICAL GOD THE FATHER OF ALL REALISTIC ACTING WHICH TOOK THE NAME IN THIS COUNTRY OF THE METHOD IN BULGAKOV'S EYES STANISLAVSKY WAS A POMPOUS DOCTRINAIRE HYPOCHONDRIAC AND IN FACT THERE IS EVIDENCE THAT BY THE '30S HOLDING ON FOR DEAR LIFE TO HIS POSITION WITH THE SOVIETS STANISLAVSKY WAS NOT THE INNOVATOR HE HAD BEEN 30 YEARS BEFORE WHEN HE DIRECTED THE PREMIERES OF ANTON CHEKHOV'S PLAYS IN ANY CASE BULGAKOV HAS A FIELD DAY IN THIS PLAY SATIRIZING NOT ONLY STANISLAVSKY BUT ALL THE OTHER ENTRENCHED HIDEBOUND DIRECTORS OF THE MOSCOW ART THEATER IN ONE SCENE IN WHICH THE YOUNG MAKSUDOV IS READING HIS PLAY TO VASILYEVICH HE IS CONTINUOUSLY INTERRUPTED FIRST BY A NURSE KERRY O'MALLEY HOVERING BY THE GREAT MAN'S SIDE ADMINISTERING MEDICINE THEN BY A PRIMA DONNA MARGARET GIBSON WHO IS PRECEDED ON STAGE BY A BLACK CAT WHO FLIES ACROSS THE STAGE ON A WIRE PULLING DOWN A CURTAIN IN THE IMPRESARIO'S OFFICE THEN BY THE DIRECTOR'S AUNT PATTI ALLISON A HUGE WOMAN WHOSE FACE LOOKS EXACTLY LIKE THE PUG DOG SHE CARRIES IN HER ARMS THE OTHER SIDE OF THE COIN FROM THE SUFFOCATING ANTICS AT THE THEATER IS THE SOLITARY DESPONDENT WRITER ALONE IN HIS ATELIER ALL OF THIS IS BROUGHT TO LIFE WITH IMAGINATION AND STYLE BY MESSRS JONES AND MCDONALD THE SET IS A HUGE WHITE THREEDIMENSIONAL BOX LIKE AN ENORMOUS DOLLHOUSE RUNNING THE FULL 40FOOT WIDTH OF THE STAGE AT THE LOEB DRAMA CENTER AT THE SIDES ARE MODELS OF THE APARTMENT HOUSE IN WHICH MAKSUDOV LIVES AND OF THE MOSCOW ART THEATER WHEN A SCENE IN THE WHITE BOX TAKES PLACE A WINDOW IN THE MODELS LIGHTS UP SHOWING WHERE IT IS OCCURRING AT ONE POINT WHEN THE DISCONSOLATE MAKSUDOV TEARS UP A MANUSCRIPT AND HURLS IT OUT A WINDOW TINY BITS OF PAPER THE SIZE OF SNOWFLAKES FLY OUT HIS WINDOW IN THE MODEL APARTMENT AT TIMES THE WHOLE SET IS REMOVED TO REVEAL THE BACKSTAGE OR REHEARSAL HALLS AT THE MOSCOW ART THEATER IT IS AN IMPRESSIVE COUP DE THEATRE IRONICALLY ALLOWING US TO ENJOY THE IMAGINATIVE GENIUS OF BULGAKOV HALF A CENTURY AFTER HE HIMSELF HAS LEFT THE SCENE ALTERNATING WITH BLACK SNOW AT THE ART IS GEORGE BERNARD SHAW'S HEARTBREAK HOUSE LIKE BULGAKOV'S WORK SHAW'S PLAY SHOWS THE UNMISTAKABLE STAMP OF THE EVENTS SURROUNDING WORLD WAR I IN THIS CASE NOT THE RUSSIAN REVOLUTION BUT THE WAR'S EFFECTS ON THE BRITISH UPPER CLASSES THE SCENE IS AN ENGLISH COUNTRY HOUSE FILLED WITH ENTERTAINING BUT INEFFECTUAL ECCENTRICS CHIEF AMONG THEM IS A RETIRED SEA CAPTAIN SHOTOVER JEREMY GEIDT AND HIS TWO DAUGHTERS THE BOHEMIAN HESIONE MARGARET GIBSON AND THE CONVENTIONAL BUT POWERFUL LADY UTTERWORD CANDY BUCKLEY ONE OF SHAW'S THEMES IS THAT FOR ALL THEIR INTELLIGENCE AND CHARM THESE PEOPLE DO LITTLE MORE THAN FIDDLE WHILE THE WORLD BURNS SHAW WAS CLEARLY THROWN BY THE WAR LACKING THE COCKSURENESS DISPLAYED IN HIS EARLIER PLAYS IN HEARTBREAK HOUSE HE TENDS TO RAMBLE AND ONE OF DIRECTOR DAVID WHEELER'S ACCOMPLISHMENTS IN THIS PRODUCTION IS TO CUT THE PLAY BY MORE THAN AN HOUR WITHOUT LOSING ANY PLOT THREADS OR IMPORTANT THEMES THE DIRECTOR'S OTHER ACHIEVEMENT IS TO CREATE A SURREALISTIC AMBIANCE THAT SERVES THE PLAY EXCEEDINGLY WELL WITH SET DESIGNER DEREK MCLANE AND LIGHTING DESIGNER HOWELL BINKLEY HE FREQUENTLY THROWS REALISM TO THE WINDS FOR THE FINAL SCENE FOR INSTANCE HE TURNS THE SET INTO A VAST MAGRITTE PAINTING THE FORMAL ARCHED DOORS AT THE REAR OF THE LIVING ROOM AS WELL AS KEY PIECES OF FURNITURE FLY INTO THE AIR TO REMAIN SUSPENDED THERE DEFYING GRAVITY AND CALLING ATTENTION TO WORLD OF THE MIND IN WHICH SHAW'S PLAYS OFTEN DWELL 9301150069 930115 GM'S SATURN WORKERS VOTE TO KEEP COOPERATIVE PACT DETROIT WORKERS AT GENERAL MOTORS CORP'S SATURN CAR PLANT VOTED BY A 7129 MARGIN TO KEEP A CONTRACT THAT RELIES HEAVILY ON COOPERATION BETWEEN THE UNION AND COMPANY THE WORKERS REJECTED A REFERENDUM THAT WOULD HAVE ALLOWED SATURN'S VERSION OF FOREMEN CALLED WORK UNIT MODULE ADVISERS TO BE DIRECTLY ELECTED BY WORKERS AS THEY ARE IN OTHER GM PLANTS INSTEAD THEY DECIDED TO RETAIN THE CURRENT CONTRACT WHERE THE PLANT'S 180 ADVISERS ARE PICKED JOINTLY BY SATURN MANAGEMENT AND UNION LEADERS THE 33211366 VOTE SHOWS THERE IS CONSIDERABLE DISSENT WITHIN SATURN WHICH HAS PRIDED ITSELF ON ITS TEAMWORK AT LEAST A QUARTER OF THE 5460 SATURN WORKERS REPRESENTED BY THE UNITED AUTO WORKERS WOULD PREFER A TRADITIONAL UNIONMANAGEMENT RELATIONSHIP AND THIS COULD PRESENT PROBLEMS IN THE FUTURE STILL MANAGEMENT AND UNION OFFICIALS HAILED THE REFERENDUM'S OUTCOME AS A VOTE OF CONFIDENCE IT'S A STRONG ENDORSEMENT OF THE PARTNERSHIP BETWEEN UNION AND MANAGEMENT SAID BILL BETTS A SATURN SPOKESMAN IN A STATEMENT MICHAEL BENNETT PRESIDENT OF UAW LOCAL 1853 SAID THE UNION LEADERSHIP WAS VERY PLEASED WITH THE OUTCOME 9301150068 930115 BUSINESS BRIEF AUTOMATIC DATA PROCESSING INC FISCAL SECOND QUARTER PROFIT ROSE 16 TO RECORD LEVEL AUTOMATIC DATA PROCESSING INC SAID NET INCOME IN THE SECOND QUARTER ENDED DEC 31 ROSE 16 TO A RECORD BOOSTED BY ACQUISITIONS IN ITS THREE MAJOR BUSINESS THE ROSELAND NJ DATA PROCESSING COMPANY SAID IT EXPECTS PERSHARE EARNINGS TO RISE 15 IN FISCAL 1993 SLIGHTLY ABOVE ORIGINAL ESTIMATES FROM 184 A SHARE IN FISCAL 1992 ADP EARNED 2562 MILLION ON REVENUE OF 19 BILLION IN FISCAL 1992 ADP SAID NET INCOME CLIMBED TO 701 MILLION OR 50 CENTS A SHARE FROM 604 MILLION OR 44 CENTS A SHARE A YEAR EARLIER REVENUE ROSE TO 5185 MILLION FROM 4493 MILLION JOSH WESTON CHAIRMAN SAID MARGINS IMPROVED IN ALL THREE OF ADP'S MAJOR BUSINESS UNITS WITH THE INTEGRATION OF RECENT ACQUISITIONS REVENUE GREW 17 IN THE COMPANY'S EMPLOYER SERVICES UNIT 20 IN ITS BROKERAGE SERVICE OPERATIONS AND 24 IN AUTO DEALER SERVICES 9301150067 930115 BUSINESS BRIEF ICF INTERNATIONAL INC COMPANY POSTS 22 MILLION IN NET FOR ITS THIRD QUARTER ICF INTERNATIONAL INC THE CONSULTING ENGINEERING AND CONSTRUCTION SERVICES FIRM SAID IT REVERSED A YEAR EARLIER LOSS IN ITS FISCAL THIRD QUARTER BUT WARNED THAT DEMAND REMAINS SOFT ICF BASED IN FAIRFAX VA REPORTED NET INCOME OF 22 MILLION OR FOUR CENTS A SHARE IN THE QUARTER ENDED NOV 30 INCLUDING 14 MILLION IN PRETAX COSTS RELATED TO A LEGAL SETTLEMENT A YEAR EARLIER WHEN THE COMPANY HAD LARGE CHARGES TO DISCONTINUE CERTAIN BUSINESSES IT HAD A NET LOSS OF 176 MILLION OR 97 CENTS A SHARE REVENUE FELL TO 158 MILLION FROM 190 MILLION IN THE YEAR EARLIER PERIOD THE COMPANY COMPLETED SEVERAL LARGE INDUSTRIAL PROJECTS THE COMPANY SAID PRIVATESECTOR DEMAND REMAINS SOFT AND THAT IT BELIEVES THE SLOWDOWN IN GOVERNMENT SPENDING IS TEMPORARY AND SHOULD IMPROVE AFTER THE NEW ADMINISTRATION IS IN PLACE 9301150066 930115 ECONOMY RETAIL SALES POST 51 INCREASE FOR LAST YEAR GAIN HELPED BY DECEMBER WAS BIGGEST SINCE 1989 PRODUCER PRICES INCH UP BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RETAILERS RECEIVED A HEFTY CHRISTMAS BONUS IN DECEMBER PUSHING TOTAL SALES FOR THE YEAR 51 ABOVE 1991 LEVELS THE BIGGEST INCREASE SINCE 1989 THE COMMERCE DEPARTMENT SAID SALES IN DECEMBER ADJUSTED FOR SEASONAL FLUCTUATIONS WERE 16676 BILLION UP 12 FROM NOVEMBER TOTAL RETAIL SALES FOR THE ALLIMPORTANT MONTH WERE 8 ABOVE DECEMBER 1991 LEVELS A FIGURE THAT THE INDUSTRY WATCHES CLOSELY DEPARTMENT STORE SALES WERE UP 103 AT APPAREL STORES SALES WERE UP 135 SEPARATELY THE LABOR DEPARTMENT SAID PRICES AT THE WHOLESALE LEVEL CREPT UP 02 IN DECEMBER AFTER DROPPING THE SAME AMOUNT THE MONTH BEFORE THE REPORT SUGGESTS THAT INFLATION REMAINS WELL IN CHECK DESPITE RECENT PICKUPS IN ECONOMIC ACTIVITY EXCLUDING VOLATILE FOOD AND ENERGY PRICES AS ECONOMISTS OFTEN DO TO GAUGE UNDERLYING INFLATIONARY PRESSURES PRODUCER PRICES ROSE 19 LAST YEAR THE SMALLEST INCREASE IN 10 YEARS THE PICKUP IN RETAIL SALES IN DECEMBER WASN'T SPREAD EVENLY SALES AT DEPARTMENT STORES AND APPAREL SHOPS USUALLY GREAT BENEFACTORS OF HOLIDAY SPENDING DIDN'T RISE AS MUCH AS THEY USUALLY DO AT THIS TIME OF YEAR AFTER REMOVING THE USUAL SEASONAL FLUCTUATIONS SALES AT DEPARTMENT AND APPAREL STORES WERE DOWN FROM NOVEMBER PUSHED BY JUMPS IN CARS AND BUILDING MATERIALS SALES OF DURABLE GOODS WERE UP A HEFTY 25 LAST MONTH AFTER FALLING IN NOVEMBER BUT FURNITURE PURCHASES WERE OFF 03 TURNOVER IN NONDURABLE GOODS CONTINUED TO BE FAIRLY WEAK RISING ONLY 04 IN DECEMBER AFTER NO CHANGE AT ALL THE MONTH BEFORE THERE WAS A 14 JUMP IN DRUGSTORE SALES AND BUSINESS AT GROCERY STORES AND RESTAURANTS WAS UP SLIGHTLY BUT MOST OTHER CATEGORIES POSTED DECLINES ANALYSTS SAID THE SURGE IN RETAIL SALES PROBABLY CAN'T BE SUSTAINED BECAUSE EMPLOYMENT AND WAGES AREN'T RISING VERY FAST FORCING CONSUMERS TO DIP INTO SAVINGS TO MAKE PURCHASES DECEMBER'S RISE IN RETAIL SALES IS UNSUSTAINABLY RAPID THIS SHOULD BE INTERPRETED AS A TEMPORARY SPIKE SAID GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS THE COMMERCE DEPARTMENT REVISED ITS NOVEMBER SALES FIGURE TO 16483 BILLION A 05 DECLINE INSTEAD OF THE 04 GAIN FIRST REPORTED FOR THE FULL YEAR SALES ROSE 51 TO 1936 TRILLION RETAIL SALES ROSE LESS THAN 1 IN 1991 AND ONLY 45 THE YEAR BEFORE THE RETAIL SALES FIGURES AREN'T ADJUSTED FOR INFLATION EXCLUDING A 12 JUMP IN FOOD PRICES AND A 19 DECLINE IN ENERGY COSTS PRODUCER PRICES EDGED UP 03 LAST MONTH AND THE INCREASES WERE FAIRLY WIDESPREAD FOR ALL 1992 PRODUCER PRICES WERE UP 16 PRICES FOR PASSENGER CARS TOBACCO PRODUCTS PRESCRIPTION DRUGS AND CAPITAL EQUIPMENT ALL ROSE IN DECEMBER PRICES FOR INTERMEDIATE GOODS OR PARTLY PROCESSED GOODS WERE UNCHANGED PRICES FOR CRUDE GOODS OR RAW MATERIALS FELL 12 MONTHLY FIGURES IN BOTH REPORTS ARE ADJUSTED FOR SEASONAL CHANGES IN ANOTHER REPORT RELEASED YESTERDAY THE LABOR DEPARTMENT SAID NEW CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE A SEASONALLY ADJUSTED 52000 IN THE WEEK ENDED JAN 2 TO 343000 THE DEPARTMENT ATTRIBUTED PART OF THE RISE TO PEOPLE WAITING UNTIL AFTER THE CHRISTMAS HOLIDAYS TO FILE FOR BENEFITS AMONG THE INDIVIDUAL STATES THE LARGEST INCREASE WAS REPORTED IN MICHIGAN WHICH CITED LAYOFFS IN A VARIETY OF INDUSTRIES FOR THE FOUR WEEKS ENDED JAN 2 INITIAL CLAIMS FOR BENEFITS AVERAGED 331250 DOWN FROM THE FOURWEEK AVERAGE OF 332500 THE WEEK BEFORE AND THE LOWEST SINCE SEPTEMBER 1989 HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR DECEMBER BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM DECEMBER 1991 9301150065 930115 BUSINESS BRIEF UPJOHN CO FINNISH DRUG REGULATORS TO ALLOW SALE OF HALCION UPJOHN CO SAID FINNISH DRUG REGULATORS HAVE NOTIFIED THE COMPANY THAT IT MAY AGAIN SELL HALCION SLEEPING PILLS IN THAT COUNTRY FINNISH REGULATORS HAVE BEEN REVIEWING HALCION DATA SINCE NOVEMBER 1991 WHEN IT TEMPORARILY BANNED SALES OF THE DRUG IN FINLAND IN THE WAKE OF THE UK'S SUSPENSION OF HALCION SALES IN OCTOBER 1991 ABOUT THE SAME TIME REGULATORS IN NORWAY BANNED SALES OF THE DRUG UPJOHN OF KALAMAZOO MICH SAID IT'S STILL APPEALING THOSE ACTIONS IN THE UK AND NORWAY CRITICS OF THE DRUG CLAIM THAT USERS OF HALCION EXPERIENCE A HIGHER INCIDENCE OF ADVERSE REACTIONS SUCH AS ANXIETY BIZARRE AND AGGRESSIVE BEHAVIOR CONFUSION AND PARANOIA THAN USERS OF OTHER BENZODIAZEPINE SLEEP MEDICATIONS 9301150064 930115 TECHNOLOGY FCC ALLOCATES FREQUENCIES FOR LOWORBIT SYSTEMS WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ALLOCATED A SMALL PORTION OF THE AIRWAVES FOR LOWORBIT SATELLITE SYSTEMS THAT WOULD CARRY TEXT MESSAGES AT THE SAME TIME THE COMMISSION AWARDED A SPECIAL PREFERENCE IN THE AGENCY'S LICENSING PROCESS TO VOLUNTEERS IN TECHNICAL ASSISTANCE AN ARLINGTON VA ORGANIZATION THAT PROPOSED TWO SUCH SATELLITE SYSTEMS FOR HUMANITARIAN SERVICES TO THIRD WORLD COUNTRIES AMONG OTHER THINGS THE SYSTEMS COULD PROVIDE A MEANS FOR PEOPLE IN REMOTE AREAS TO OBTAIN MEDICAL ADVICE OR TO COORDINATE DISASTER RELIEF THE COMMISSION SAYS THE SPECTRUM COULD ACCOMMODATE AS MANY AS THREE MESSAGE AND TRACKING SERVICES THE SATELLITES WOULD BE LOFTED INTO ORBITS 650 TO 1300 MILES ABOVE THE EARTH PROVIDING DATA SERVICES AT LOWER COST THAN CURRENT SYSTEMS THE FCC ALSO PROPOSED LICENSING PROCEDURES FOR THE NEW COMMUNICATIONS SERVICES IT IS LIKELY TO ESTABLISH PROCEDURES AND BEGIN AWARDING LICENSES NEXT YEAR IN ADDITION TO VOLUNTEERS IN TECHNICAL ASSISTANCE TWO COMPANIES ORBITAL COMMUNICATIONS CORP AND STARSYS GLOBAL POSITIONING INC APPLIED FOR LICENSES 9301150063 930115 POLITICS & POLICY DIVERSE GROUP PICKED TO STAFF WHITE HOUSE LIBERALS MODERATES CHOSEN AS A DOMESTIC THEME IS REINFORCED BY CLINTON BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK PRESIDENTELECT CLINTON APPOINTED A DIVERSE WHITE HOUSE STAFF REPRESENTING BOTH WINGS OF THE DEMOCRATIC PARTY AND IMPARTING A THIRTYSOMETHING TONE TO AN INSTITUTION USUALLY RESERVED FOR OLDER WHITE MALES MR CLINTON REINFORCING A DOMESTIC THEME FOR HIS ADMINISTRATION PERSONALLY INTRODUCED THREE OF HIS MAJOR APPOINTMENTS CAROL RASCO AS ASSISTANT TO THE PRESIDENT FOR DOMESTIC POLICY ELI SEGAL AS DIRECTOR OF THE NEW OFFICE OF NATIONAL SERVICE AND DAVID WILHELM TO BE CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE THE GESTURE HIGHLIGHTED THE FACT THAT DESPITE THE RECENT FOREIGNPOLICY CRISES ABROAD MR CLINTON INTENDS TO FOCUS ON DOMESTIC POLICIES SUCH AS HIS PROPOSAL TO HAVE COLLEGE STUDENTS REPAY LOANS WITH NATIONAL SERVICETYPE WORK IN THEIR COMMUNITIES BUT THE WHITE HOUSE STAFF STILL HAS FAIRLY LIMITED WASHINGTON EXPERIENCE AN ISSUE RAISED EARLIER WHEN MR CLINTON NAMED ARKLA INC CHAIRMAN THOMAS MACK MCLARTY AS HIS CHIEF OF STAFF WHILE WASHINGTON VETERAN GEORGE STEPHANOPOULOS WAS NAMED COMMUNICATIONS DIRECTOR HE WASN'T GIVEN THE BROADER WHITE HOUSE ROLE THAT SOME HAD EXPECTED AND PAUL BEGALA AND THOMAS DONILON WHO BOTH HAVE WASHINGTON EXPERIENCE AND ONCE WERE EXPECTED TO BE APPOINTEES ENDED UP WITHOUT WHITE HOUSE JOBS MR DONILON IS NOW EXPECTED TO BECOME A TOP AIDE TO WARRREN CHRISTOPHER AT THE STATE DEPARTMENT AND MR BEGALA IS EXPECTED TO BE A CONSULTANT TO THE DEMOCRATIC NATIONAL COMMITTEE IT ALSO APPEARED YESTERDAY THAT HILLARY CLINTON WOULD BE GIVEN AN OFFICE IN THE WEST WING OF THE WHITE HOUSE WHERE THE OTHER MEMBERS OF THE STAFF WORK FIRST LADIES NORMALLY HAVE SEPARATE OFFICES IN THE EAST WING IN AN INDICATION OF MRS CLINTON'S CONSIDERABLE CLOUT NONE OF MR CLINTON'S TOP AIDES WOULD DISCUSS THE ARRANGEMENTS BEING MADE FOR HER BUT IT WAS CLEAR THAT SOME IN THE CLINTON CAMP OPPOSED THE WEST WING OFFICE AND THOUGHT IT SENT THE WRONG SIGNAL TO THE NATION THE APPOINTMENTS ALSO SEEMED TO UNDERSCORE THE DEGREE TO WHICH MR CLINTON WANTS TO CONTROL MAJOR POLICY DECISIONS FROM THE WHITE HOUSE RATHER THAN FROM CABINET AGENCIES AMONG THE APPOINTMENTS MR CLINTON NAMED HIS LONGTIME FRIEND AND BUSINESS CONSULTANT IRA MAGAZINER AS SENIOR ADVISER FOR POLICY DEVELOPMENT MR MAGAZINER IS EXPECTED TO RUN SEVERAL OF THE INTERAGENCY TASK FORCES THAT BRING TOGETHER CABINET OFFICIALS TO FORGE CONSENSUS ON KEY POLICY ISSUES CLINTON PRESS SECRETARY DEE DEE MYERS EMPHASIZED THE DIVERSITY OF THE GROUP I THINK IT IS A GOOD MIX OF PEOPLE SHE SAID THIS TRULY IS AN ADMINISTRATION THAT LOOKS LIKE AMERICA AS COMMUNICATIONS DIRECTOR MR STEPHANOPOULOS WILL CONTINUE TO GIVE THE DAILY PRESS BRIEFINGS AND WILL BE ASSISTED BY MS MYERS AND A HOST OF OTHERS INCLUDING DAVID DREYER THE PRESS SPOKESMAN FOR HOUSE MAJORITY LEADER RICHARD GEPHARDT AND RICKI SEIDMAN A FORMER SENATE AIDE THE BIGGEST SURPRISE IN THE APPOINTMENTS WAS THAT HAROLD ICKES A NEW YORK LABOR LAWYER WASN'T CHOSEN TO BE A DEPUTY CHIEF OF STAFF AS WIDELY EXPECTED INSTEAD MR CLINTON GAVE THAT POST TO MARK GEARAN WHOM HE HAD WORKED WITH AT THE NATIONAL GOVERNORS ASSOCIATION MR STEPHANOPOULOS SAID THAT MR ICKES HAD WITHDRAWN HIS NAME FROM CONSIDERATION MR ICKES HAS BEEN THE SUBJECT OF TELEVISION AND NEWSPAPER REPORTS NOTING THAT HE SERVED AS LEGAL COUNSEL TO A NEW YORK RESTAURANT UNION ACCUSED OF TIES TO ORGANIZED CRIME THE PRESIDENTELECT YESTERDAY TURNED TO MR MCLARTY TO NAME ADDITIONAL APPOINTMENTS INCLUDING MR MAGAZINER BRUCE LINDSEY AS AN ASSISTANT TO THE PRESIDENT AND DIRECTOR OF THE OFFICE OF PERSONNEL JOHN PODESTA AS THE STAFF SECRETARY NANCY HERNREICH AS A DEPUTY ASSISTANT TO THE PRESIDENT FOR APPOINTMENTS AND SCHEDULING BERNIE NUSSBAUM AS CHIEF COUNSEL HOWARD PASTER AS DIRECTOR OF LEGISLATIVE AFFAIRS MARCIA HALE AS DIRECTOR OF SCHEDULING AND ADVANCE ALEXIS HERMAN AS DIRECTOR OF PUBLIC LIAISON RAHM EMANUEL AS DIRECTOR OF POLITICAL AFFAIRS AND REGINA MONTOYA AS DIRECTOR OF INTERGOVERNMENTAL AFFAIRS IN ADDITION GENE SPERLING WHO COORDINATED ECONOMIC ISSUES FOR THE CLINTON CAMPAIGN AND BOWMAN CUTTER A BUDGET OFFICIAL IN THE CARTER ADMINISTRATION WERE NAMED THE TOP DEPUTIES TO ROBERT RUBIN THE HEAD OF THE NATIONAL ECONOMIC COUNCIL MRS CLINTON HAS SELECTED MAGGIE WILLIAMS AN ASSOCIATE FROM THE CHILDREN'S DEFENSE FUND TO BE HER CHIEF OF STAFF AND LISA CAPUTO WHO WAS PRESS SECRETARY FOR FORMER SEN TIM WIRTH OF COLORADO TO SERVE IN THAT ROLE FOR HER OFFICE SOME OF THE APPOINTEES WHOSE NAMES WERE BURIED IN THE LAUNDRY LIST WILL PLAY LARGER ROLES THAN THEIR TITLES SUGGEST MR LINDSEY FOR INSTANCE HAS BEEN ONE OF MR CLINTON'S CLOSEST ADVISERS OVER THE YEARS AND MR MAGAZINER WILL STRONGLY INFLUENCE THE SHAPING OF DOMESTIC POLICY CLINTON AIDES SAY THE INTERAGENCY TASK FORCES MAY FORMALLY BE HEADED BY MR CLINTON MR MCLARTY OR POSSIBLY MRS CLINTON IN SOME CASES ACCORDING TO ADVISERS BUT MR MAGAZINER WILL BE THE ONE WHO OVERSEES AT LEAST SOME OF THEM DAYTODAY MR MAGAZINER IS EXPECTED TO STEP IN MOST IMMEDIATELY AS THE LEADER OF A TASK FORCE ON HEALTHCARE POLICY WHICH MAY INCLUDE REPRESENTATIVES FROM THE OFFICE OF MANAGEMENT AND BUDGET THE TREASURY THE COUNCIL OF ECONOMIC ADVISERS AND THE DEPARTMENTS OF LABOR COMMERCE DEFENSE VETERANS AFFAIRS AND HEALTH AND HUMAN SERVICES ALTHOUGH MR CLINTON APPOINTED BOTH LIBERALS AND MODERATES TO POSTS SOME OF HIS MODERATE SUPPORTERS COMPLAINED PRIVATELY THAT THE PROGRESSIVE WING OF THE PARTY HAD WON MORE SPOTS FOR INSTANCE MR PODESTA IS A CONSULTANT AND POLICY ADVOCATE WITH CLOSE TIES TO SEN EDWARD KENNEDY MR SEGAL IS A BUSINESSMAN WHO WORKED FOR SEN GARY HART'S POLITICAL CAMPAIGNS MS HERMAN HAS BEEN A CLOSE ADVISER TO THE REV JESSE JACKSON AND MR GEARAN WAS A TOP AIDE TO MASSACHUSETTS GOV MICHAEL DUKAKIS MOREOVER MR CLINTON SEEMS TO HAVE IGNORED THE ADVICE OF THE DEMOCRATIC LEADERSHIP COUNCIL A CENTRIST ORGANIZATION WHICH WARNED MR CLINTON THAT THE BEST WAY TO GET HIS PROGRAM ENACTED WAS TO APPOINT PEOPLE WHO SHARE HIS VIEWS MEMBERS OF THE COUNCIL WHICH HELPED MR CLINTON FORM MANY OF HIS DOMESTIC INITIATIVES DIDN'T WIN MANY GOVERNMENT POSTS BRUCE REED A FORMER DLC POLICY EXPERT WILL BE A DEPUTY POLICY ADVISER WHILE WILLIAM GALSTON WHO IS A DLC VISITING FELLOW WILL ALSO BE A POLICY DEPUTY IN ADDITION VICE PRESIDENTELECT ALBERT GORE NAMED HIS LONGTIME AIDE ROY NEEL AS CHIEF OF STAFF AND MARLA ROMASH HIS SENATE PRESS SECRETARY AS COMMUNICATIONS DIRECTOR RICK WARTZMAN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9301150062 930115 CLINTON URGES HAITIANS NOT TO TAKE BOATS TO US LITTLE ROCK ARK PRESIDENTELECT CLINTON URGED HAITIANS NOT TO TAKE BOATS TO THE US AND SAID HE WILL CONTINUE THE BUSH ADMINISTRATION POLICY OF INTERCEPTING THEM AND RETURNING THEM TO THEIR COUNTRY MR CLINTON'S STATEMENT APPEARED TO BE A REVERSAL OF CAMPAIGN RHETORIC IN WHICH HE FREQUENTLY ATTACKED PRESIDENT BUSH FOR TURNING AWAY FLEEING HAITIANS AND QUESTIONED WHETHER FACILITIES IN FLORIDA WERE ADEQUATE FOR THE REFUGEES WHO REACH THE US SUCH COMMENTS WERE WIDELY BELIEVED LIKELY TO LAUNCH A NEW WAVE OF BOAT PEOPLE FLEEING THE TROUBLED ISLAND COUNTRY THE PRESIDENTELECT INSISTED HE HADN'T CHANGED COURSE HE ALSO SAID THAT HE STILL BELIEVES THE POLICY SHOULD BE CHANGED BUT THAT HE COULDN'T DO IT ON A DIME ON JAN 20 THE DAY HE TAKES OFFICE IN THE POLICY ANNOUNCED YESTERDAY MR CLINTON SAID HE WOULD MOVE TO PROVIDE HAITIANS ALTERNATIVES TO BOAT DEPARTURES BY INSTRUCTING THE US EMBASSY IN HAITI TO ADOPT A QUICKER REFUGEESCREENING PROCESS HE WOULD HAVE THE STATE DEPARTMENT ESTABLISH PROCEDURES TO MAKE IT EASIER FOR HAITIANS OUTSIDE PORTAUPRINCE TO APPLY FOR REFUGEE STATUS HE ALSO WOULD DIRECT THE IMMIGRATION AND NATURALIZATION SERVICE AND THE STATE DEPARTMENT TO DEPLOY MORE OFFICERS TO SPEED UP REFUGEE PROCESSING IN HAITI 9301150061 930115 BUSINESS BRIEF TOTAL SA US UNIT TO REBRAND STORES SHED ABOUT 20 OF THEM TOTAL PETROLEUM NORTH AMERICA LTD DENVER SAID IT WILL REBRAND ITS GASOLINE CONVENIENCE STORES UNDER THE NAME TOTAL ELIMINATING THREE OTHER NAMES UNDER WHICH IT SOLD GASOLINE AND SHED ABOUT 20 OF ITS STORES THE MARKETING PROGRAM WHICH IS EXPECTED TO COST ABOUT 10 MILLION OVER TWO YEARS IS AN ATTEMPT TO MAKE A UNIFIED GASOLINE BRAND RECOGNIZABLE TO US CONSUMERS SAID DANIEL VALOT CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF TOTAL PETROLEUM TOTAL GASOLINE IS CURRENTLY MARKETED UNDER THE NAMES VICKERS APCO ROAD RUNNER AND TOTAL IN 22 MIDWESTERN STATES AS PART OF THE RESTRUCTURING TOTAL WILL TRADE OR SELL 20 OF ITS STORES BRINGING THE NUMBER OF STATIONS TO 2100 TO 2200 FROM THE CURRENT 2600 WHILE TOTAL ISN'T A MAJOR PLAYER IT DOES RANK 15TH IN THE SALE OF REFINED PRODUCTS AND GROSS GASOLINE IN 1991 ACCORDING TO NATIONAL PETROLEUM NEWS THE COMPANY IS 53 OWNED BY PARISBASED TOTAL SA 9301150060 930115 MORE BIG BLUES AS MICROSOFT'S STOCKMARKET VALUE COULD SOON PASS LEAD OF HUMBLED GIANT IBM BY DOUGLAS R SEASE AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE RACE IS TIGHT BUT ANALYSTS AGREE THAT ANY DAY NOW SOFTWARE GIANT MICROSOFT CORP'S STOCKMARKET VALUE WILL TOP THAT OF INTERNATIONAL BUSINESS MACHINES CORP AT THE CLOSE OF TRADING YESTERDAY IBM HELD ONTO THE LEAD BY A SLIM MARGIN WITH IBM STOCK QUOTED AT 4875 UP 1 ITS 5709 MILLION SHARES HAD A VALUE OF 2783 BILLION MICROSOFT SHARES CLOSED UNCHANGED AT 9125 GIVING ITS 299 MILLION FULLY DILUTED SHARES A VALUE OF 2728 BILLION AND COMING UP FAST IN THE TECHNOLOGY SWEEPSTAKES IS THIRDPLACE INTEL CORP WHOSE SHARES HAVE LEAPED A STUNNING 14 THIS WEEK ALONE THE SEMICONDUCTOR MAKER IS VALUED AT 2447 BILLION BASED ON YESTERDAY'S CLOSING PRICE OF 11275 FOR ITS 217 MILLION FULLY DILUTED SHARES WHY DOES IT MATTER TO MANY INVESTMENT PROFESSIONALS THE ASCENDANCY OF MICROSOFT AND THE DECLINE OF COMPUTER GIANT IBM REFLECT THE SEA CHANGE IN THE TECHNOLOGY WORLD THAT HAS MADE THE SECTOR ONE OF THE MOST TURBULENT IN THE STOCK MARKET FOR MORE THAN A DECADE THIS IS AN UNBELIEVEABLE REVERSAL OF FORTUNE SAYS DAVID SHULMAN CHIEF EQUITIES STRATEGIST AT SALOMON BROTHERS INC MICROSOFT WAS JUST A TINY COMPANY 15 YEARS AGO AND IBM RULED THE WORLD ADDS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP THIS SHOWS US THAT VALUE IN THE TECHNOLOGY BUSINESS IS ADDED BY SOFTWARE NOT HARDWARE ANALYSTS SAY THAT POWERFUL TECHNOLOGICAL CHANGES HAVE MADE IT INEVITABLE THAT IBM WOULD LOSE ITS PREMIER POSITION IN THE COMPUTER INDUSTRY FOR THE PAST FIVE YEARS TECHNOLOGY HAS BEEN MOVING IN THE DIRECTION OF REMOVING THE MAINFRAME AS THE COMPUTER POWER SOURCE SAYS RICK SHERLUND A TECHNOLOGY ANALYST AT GOLDMAN SACHS & CO IN ADDITION NO SINGLE COMPANY LIKE IBM TODAY CAN DO EVERYTHING WELL THAT'S REQUIRED IN THE HIGHLY COMPETITIVE FAST CHANGING WORLD OF COMPUTERS MR SHERLUND SAYS RATHER IT IS THE HIGHLY SPECIALIZED COMPANIES SUPPORTING ONE ANOTHER THAT ARE POWERING THE INDUSTRY TODAY IT'S LIKE A WOLFPACK OUT THERE WITH MICROSOFT NOVELL INTEL AND A HOST OF OTHER COMPANIES MR SHERLUND SAYS AND THERE'S A LESSON HERE ABOUT WHERE THE HOT TECHNOLOGY STOCKS ARE TRADING LAGGARD IBM TRADES ON THE NEW YORK STOCK EXCHANGE MICROSOFT INTEL AND NOVELL INC ARE ON THE NASDAQ OVERTHECOUNTER MARKET MANY MONEY MANAGERS SAY THAT AT LEAST PSYCHOLOGICALLY MICROSOFT LONG AGO SUPPLANTED IBM AS THE LEADER IN THE TECHNOLOGY ARENA REGARDLESS OF THE COMPANIES' RELATIVE STOCKMARKET VALUE IT'S THE NATURE OF THE COMPUTER INDUSTRY THAT ONE COMPANY BE THE LEADER AND THAT COMPANY IS MICROSOFT SAYS ROGER MCNAMEE A MONEY MANAGER AT INTEGRAL PARTNERS IN PALO ALTO CALIF CERTAINLY IBM HAS LOST ITS LEADERSHIP ROLE IN THE OVERALL STOCK MARKET MR JOHNSON POINTS OUT THAT YEARS AGO WHEN INVESTORS WOULD ASK HIM HOW THE STOCK MARKET WAS DOING THE FIRST THING HE WOULD CHECK WAS IBM STOCK'S PERFORMANCE TODAY I DON'T EVEN LOOK AT IBM HE SAYS I HAVE TO LOOK AT MICROSOFT INTEL MERCK AND A SEVERAL OTHER COMPANIES THAT TELLS ME THAT LIFE IS A LITTLE TOUGHER THESE DAYS IT'S MORE COMPLICATED THAT DOESN'T MEAN IBM COULDN'T BE A STOCKMARKET SUCCESS AGAIN IF IT BROKE ITSELF UP INTO SEPARATE COMPANIES SOME ANALYSTS SAY PETER CANELO CHIEF MARKET STRATEGIST AT COUNTY NATWEST SAYS ONE OF IBM'S BIGGEST PROBLEMS IS THAT THE COMPANY NEVER KNEW HOW WELL ITS SEPARATE BUSINESSES WERE DOING IBM HAS A REASONABLY GOOD SEMICONDUCTOR BUSINESS AND THEIR SERVICE ORGANIZATION IS REPUTED TO BE THE BEST IN THE BUSINESS HE SAYS BUT HE ADDS THAT THEIR SOFTWARE MIGHT BE LESS SUCCESSFUL AND THEIR MAINFRAMES MIGHT NOT EVEN SURVIVE IF SPUN OFF AS SEPARATE COMPANIES BUT THE POINT IS YOU WOULD BE IMPOSING MARKET DISCIPLINES ON THESE DIFFERENT SEGMENTS AND THEY WOULD FIND OUT WHICH ONES ARE GOOD AND WHICH ONES AREN'T MR CANELO SAYS AND DON'T THINK THAT MICROSOFT WOULD NECESSARILY HOLD THE STOCKMARKET MANTLE FOREVER EITHER INTEL IS NIPPING AT ITS HEELS MR CANELO NOTES THAT AS COMPUTERS HAVE GOTTEN SMALLER INTEL'S SEMICONDUCTOR CHIPS HAVE BECOME THE COMPUTER FOR ALL INTENTS AND PURPOSES FIRST ALBANY'S MR JOHNSON POINTS OUT TOO THAT THE LATEST TREND IN COMPUTER TECHNOLOGY IS NETWORKING A FIELD IN WHICH NOVELL EXCELS IT ISN'T AS THOUGH MICROSOFT IS ON SOME PEDESTAL THAT CAN'T BE UPSET HE SAYS AS FOR THE OVERALL STOCK MARKET MR CANELO SUGGESTS THAT THE ADVANCES IN MICROSOFT AND INTEL SHARES AND IBM'S SPECTACULAR DROP ARE SERIOUSLY AFFECTING THE PERFORMANCE OF POPULAR STOCKMARKET BENCHMARKS IF INTEL HAD BEEN SUBSTITUTED FOR IBM IN THE DOW JONES INDUSTRIAL AVERAGE A YEAR AND A HALF AGO THE DOW WOULD BE AT 3567 TODAY INSTEAD OF 3267 MR CANELO SAYS THE DOW HAS BEEN SEVERELY DISTORTED BY IBM AND SOME OF THE OTHER OLD FOGIES OF AMERICAN BUSINESS 9301150059 930115 WHO'S NEWS PRESIDENT QUITS GERBER PRODUCTS AFTER 2 YEARS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL FREMONT MICH GERBER PRODUCTS CO'S PRESIDENT JAMES T SMITH RESIGNED AFTER ONLY TWO YEARS WITH THE BABY FOOD CONCERN THE APPARENT VICTIM OF RECENT MISTAKES THAT COST THE COMPANY MARKET SHARE AND PUMMELED ITS STOCK PRICE THE COMPANY WOULDN'T ELABORATE ON MR SMITH'S DEPARTURE BEYOND SAYING HE HAD LEFT TO PURSUE OTHER INTERESTS REACHED AT HIS HOME MR SMITH 45 YEARS OLD SAID I HAVE NOTHING TO ADD BUT SECURITIES ANALYSTS SAID THEY WEREN'T SURPRISED AT THE DEPARTURE GIVEN GERBER'S STUMBLES OF LATE IN AREAS OVER WHICH MR SMITH HAD RESPONSIBILITY AND WHICH ULTIMATELY COST IT VALUABLE MARKET SHARE ONLY LAST MONTH THE COMPANY FOREWARNED WALL STREET TO EXPECT LOWER FISCALYEAR EARNINGS CITING INTENSE COMPETITION THAT WAS SIGNIFICANTLY CUTTING GERBER'S US SALES THAT JOLT CAUSED GERBER STOCK TO TUMBLE 525 A SHARE OR ABOUT 15 A DROP FROM WHICH IT HASN'T RECOVERED GERBER CLOSED YESTERDAY AT 31 UP 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING THE ANNOUNCEMENT OF MR SMITH'S DEPARTURE CAME AFTER THE MARKET CLOSED AN EXECUTIVE WITH AN EXTENSIVE MARKETING BACKGROUND MR SMITH HAD COME TO GERBER FROM PROCTER & GAMBLE CO INITIALLY AS EXECUTIVE VICE PRESIDENT BUT LAST MAY ASSUMING THE TITLE OF PRESIDENT FROM CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALFRED A PIERGALLINI MR SMITH ALSO WAS ELECTED TO GERBER'S BOARD IN THE WAKE OF HIS DEPARTURE MR PIERGALLINI WILL ASSUME RESPONSIBILITIES FOR BABY FOOD BABY CARE AND APPAREL BUSINESSES IN THE WESTERN HEMISPHERE FOR A COMPANY WHOSE VERY NAME MEANS BABY FOOD GERBER'S RECENT TRAVAILS WERE UNNERVING TO SHAREHOLDERS SOME ANALYSTS CALLED INTO QUESTION TOP MANAGEMENT'S CREDIBILITY SINCE THE MIDDECEMBER WARNING OF LOWER EARNINGS WAS THE SECOND SUCH MESSAGE ISSUED IN AS MANY MONTHS GERBER BLAMED BABY FOOD RIVALS RALSTON PURINA CO AND HJ HEINZ CO FOR CREATING WHAT IT CALLED A DRAMATIC CHANGE IN THE MARKETPLACE THAT COST GERBER MARKET SHARE AND EARNINGS BUT IN LARGE MEASURE THE COMPETITORS WERE SIMPLY TURNING MARKETING MOVES BY GERBER TO THEIR ADVANTAGE A BIG ONE WAS A 55 PRICE INCREASE BY GERBER IN SEPTEMBER WHICH THEY CHOSE NOT TO FOLLOW IMMEDIATELY INSTEAD RALSTON'S BEECHNUT BRAND WENT ON A DISCOUNTING BINGE IN SOME CASES UNDERCUTTING GERBER BY MORE THAN 25 CENTS A JAR BOTH HEINZ AND RALSTON HAVE SINCE INCREASED THEIR PRICES BUT IN THE FACE OF A SHRINKING BIRTH RATE THE DISCOUNTING BURST SENT GERBER REELING ANOTHER ERROR ANALYSTS SAY WAS GERBER'S SPENDING HEAVILY TO INCREASE ITS DOMINANT MARKET SHARE BEYOND ABOUT 70 WHEN YOU ALREADY HAVE SEVEN OUT OF EVERY 10 CLIENTS I QUESTION WHY THEY THOUGHT THEY NEEDED AGGRESSIVE PROMOTION TO GET THE OTHER THREE SAID PRUDENTIAL SECURITIES FOOD ANALYST JOHN M MCMILLIN GOLDMAN SACHS & CO ANALYST NOMI GHEZ SAID GERBER ALSO ERRED IN OVERPROMISING TO INVESTORS LAST SUMMER THAT ITS GROWTH RATE WOULD BE VERY ROBUST AND THEY'D CONTINUE TO GROW MARKET SHARE BEYOND MISTAKES ONE OF THE DIFFICULTIES THEY'RE FACED WITH IS THE SIMPLE FACT THAT THE BABY FOOD MARKET IS DECLINING I THINK THEY MAY HAVE MISJUDGED HOW MUCH THEY CAN GROW IN A MARKET THAT IS DECLINING 9301150058 930115 BUSINESS BRIEF ELCOR CORP NET GREW MORE THAN SIXFOLD IN 2ND PERIOD TO 41 MILLION ELCOR CORP CONTINUING TO BENEFIT FROM A REBOUNDING HOMEBUILDING INDUSTRY SAID ITS NET INCOME FOR THE SECOND QUARTER ENDED DEC 31 ROSE MORE THAN SIXFOLD THE DALLAS ROOFING AND INDUSTRIAL PRODUCTS MAKER POSTED SECONDQUARTER NET OF 41 MILLION OR 53 CENTS A SHARE UP FROM 588000 OR EIGHT CENTS A SHARE A YEAR EARLIER SALES GREW 26 TO 418 MILLION FROM 332 MILLION ELCOR ATTRIBUTED THE GAINS TO STRONGER DEMAND FOR ITS ROOFING PRODUCTS AND IMPROVED PRICES AND PRODUCT MIX DEBT REDUCTION AND MODERATE PROFITS IN ITS INDUSTRIAL PRODUCTS OPERATIONS ALSO CONTRIBUTED TO THE IMPROVEMENT THE COMPANY SAID WITH THE STRONG QUARTER FIRSTHALF NET MORE THAN DOUBLED TO 98 MILLION OR 130 A SHARE FROM 41 MILLION OR 56 CENTS A SHARE A YEAR EARLIER FIRSTHALF SALES ROSE 17 TO 853 MILLION FROM 726 MILLION ROY E CAMPBELL CHAIRMAN AND CHIEF EXECUTIVE SAID HE EXPECTS CONTINUED IMPROVEMENT THROUGH THE REST OF THE FISCAL YEAR 9301150057 930115 MARKETING & MEDIA ADVERTISING MORE MADEINTHEUSA CLAIMS SURPRISINGLY ARE SHOWING UP BY KEVIN GOLDMAN IN NEW ADS TOUTING THE CONCORDE CHRYSLER CORP'S LATEST FOURDOOR SEDAN THE AUTOMOBILE MANUFACTURER IS BLUNT IN BOASTING WHAT IT CONSIDERS A MAJOR ASSET AND YES THE AD SAYS FOR THE RECORD IT'S AN AMERICAN CAR THE CAR'S SLOGAN THE RENAISSANCE OF THE AMERICAN CAR NEVER MIND THAT AN ASTERISK GUIDES THE READER TO A FOOTNOTE REVEALING THAT ACTUALLY ONLY 72 OF THE INTERIOR OF THE CONCORDE WITH ITS NAME RESONANT OF A BRITISH AND FRENCH LUXURY AIRLINER IS MADE IN THE US THE OTHER 28 IS MANUFACTURED IN CANADA MADE IN AMERICA USED TO BE A SLOGAN THAT WAS ASSOCIATED WITH BUYING PRODUCTS WITH THE UNION LABEL NO MATTER HOW HARD IT TRIED THE EFFORT WAS WELL UNHIP BUT NOW MORE MADEINTHEUSA CLAIMS ARE CREEPING INTO ADS THAT MAY BE A BIT PUZZLING ESPECIALLY GIVEN THAT US CONSUMERS CONTINUE TO POUR BILLIONS OF DOLLARS INTO FOREIGN CARS EUROPEAN FASHION AND JAPANESE ELECTRONICS WHEN PUSH COMES TO SHOVE PEOPLE WILL GO ELSEWHERE WHEN PRICE COMES INTO FOCUS SAYS WILLIAM PUTSIS A MARKETING PROFESSOR AT YALE UNIVERSITY'S SCHOOL OF ORGANIZATION AND MANAGEMENT A MADEINTHEUSA' CAMPAIGN ENHANCES THE CORPORATE IMAGE BUT A BETTERMADE PRODUCT WILL ALWAYS WIN OUT YET SOME MARKETING EXPERTS SEE AN UNDERCURRENT IN THE COUNTRY THAT AMERICAN MANUFACTURERS SHOULD CASH IN ON CONSUMERS ARE WILLING TO BUY AMERICANMADE GOODS IF OF COURSE THE PRICE IS RIGHT AND THE QUALITY IS GOOD THERE IS A STRONG EMOTIONAL APPEAL WHEN YOU SAY MADE IN THE USA' SAYS DON WHITE PRESIDENT OF THE SAUGATUCK GROUP IN WESTPORT CONN A DIRECT MARKETING PROMOTION AND CONSULTING FIRM ADDS LILLIAN MARESCH PRESIDENT OF GENERATIONAL INSIGHTS IN MINNEAPOLIS A COMMUNICATIONS CONSULTING FIRM BABY BOOMERS CARE MORE ABOUT THIS THAN THEY DID IN THE PAST THEY MIGHT NOT ACTIVELY LOOK FOR A MADEINTHEUSA' LABEL BUT IT MIGHT INFLUENCE THEIR DECISION ON WHAT PRODUCT TO BUY IF IT'S FEATURED IN ADVERTISING AND SO MYRIAD MARKETERS FROM CUTRATE RETAILERS TO APPLIANCE MAKERS ARE SINGING THE AMERICAN TUNE WALMART STORES INC PLANS TO STICK WITH ITS BUY AMERICAN CAMPAIGN EVEN THOUGH ITS CLAIMS WERE QUESTIONED LAST MONTH BY AN NBC NEWS REPORT ALLEGING AMONG OTHER THINGS THAT THE STORE CHAIN HAD ACCEPTED PRODUCTS MADE WITH CHILD LABOR IN BANGLADESH AND HAD IGNORED IMPORT QUOTAS ADS FOR VACUUM CLEANERS MANUFACTURED BY ROYAL APPLIANCE MANUFACTURING CO INCLUDE A LOGO INDICATING THE PRODUCT IS MADE DOMESTICALLY ONE SMALL NEW YORKBASED SPORTSWEARMANUFACTURER BOSTON PREPATORY CO IS TRYING TO GO UP AGAINST APPAREL RIVALS BY SAYING IT MAKES 100 OF ITS PRODUCTS IN THE US AND ITS COMPETITION INCLUDING TOMMY HILFIGER AND CALVIN KLEIN DOESN'T ONE AD HAS LABELS RIPPED FROM CLOTHING DESIGNED BY MESSRS HILFIGER AND KLEIN AS WELL AS FROM POLO BY RALPH LAUREN THE LABELS SAY THE APPAREL IS MADE IN SINGAPORE HONG KONG AND THAILAND APPARENTLY THE AD'S HEADLINE READS SOME DESIGNERS THINK AMERICANS LOOK BETTER IN THEIR CLOTHES THAN IN THEIR FACTORIES ANOTHER AD FEATURES A NAKED MAN COVERING STRATEGIC PLACES WITH HIS HANDS THE HEADLINE TAKE A LOOK AT TOMMY HILFIGER'S CURRENT MADE IN AMERICA LINE A SPOKESWOMAN FOR MR LAUREN SAYS THE AD IS INACCURATE AND MISLEADING THE MAJORITY OF OUR PRODUCTS ARE PRODUCED DOMESTICALLY A SPOKESWOMAN FOR MR HILFIGER SAYS MR HILFIGER IS AN AMERICAN DESIGNER HE DESIGNS CLASSIC AMERICAN CLOTHES WE SEARCHED THE WORLD FOR WHERE WE CAN MAKE THE BEST QUALITY FOR THE BEST PRICE SHE COULDN'T QUANTIFY WHAT PORTION OF THE HILFIGER LINE IS PRODUCED DOMESTICALLY BUT ADDED THE COMPANY'S SOCKS HATS AND TSHIRTS ARE MANUFACTURED IN THE US A SPOKESWOMAN FOR MR KLEIN SAYS A VERY LARGE PERCENTAGE OF HIS APPAREL IS MADE DOMESTICALLY AND IN SOME DIVISIONS ALL OF THE PRODUCT IS MANUFACTURED DOMESTICALLY BOSTON PREPATORY'S UPSTART 27YEAROLD PRESIDENT BEN NARASIN SAYS HE HAS TRIED TO PLACE THE FULLPAGE AD IN SEVERAL MAGAZINES INCLUDING VANITY FAIR PUBLISHED BY CONDE NAST PUBLICATIONS INC A UNIT OF ADVANCE PUBLICATIONS INC AND ESQUIRE PUBLISHED BY HEARST INC THE AD WASN'T ACCEPTED HE CONTENDS BECAUSE IT CRITICIZES RIVALS THAT ARE HEAVY ADVERTISERS IN THE MAGAZINES NONSENSE THE MAGAZINES RESPOND I'M NOT IN THE HABIT OF LETTING SOME LESSER KNOWN COMPANY CAPITALIZE ON A BETTER KNOWN NAME SAYS RON GALOTTI PUBLISHER OF VANITY FAIR A FURTHER ZING TO MR NARASIN THE ADS LOOKED LIKE THEY BELONGED IN A TRADE PUBLICATION SNIFFS MR GALOTTI HAVE HIM DESIGN A BETTER AD NANCY LEWINTER PUBLISHER OF ESQUIRE SAYS SHE REJECTED A SKETCH OF THE AD BECAUSE IT MADE INFLAMMATORY STATEMENTS ABOUT THEIR COMPETITOR AND SHE WANTED TO KNOW WHETHER THE ALLEGATIONS WERE TRUE MR NARASIN IS INCENSED THAT HE CAN'T GET HIS MESSAGE OUT I COMPETE IN A SMALL ARENA HE SAYS AND I'M THE ONLY ONE WHO MAKES 100 OF ALL MY STUFF IN THE UNITED STATES HE HAS ALIGNED HIMSELF WITH THE NONPROFIT MADE IN THE USA FOUNDATION AND HAS SCHEDULED A NEWS CONFERENCE TODAY IN WASHINGTON TO CRITICIZE THE MAGAZINES' DECISION WE'RE CALLING ON AMERICAN COMPANIES TO BE MORE AMERICAN AGAIN SAYS JOEL JOSEPH CHAIRMAN OF THE FOUNDATION WE SHOULD BE AN EXPORT SUPERPOWER SOME EXPERTS WONDER HOWEVER WHETHER THE BEATING OF THE TOMTOM DRUMS FALLS ON RECEPTIVE EARS SOME PEOPLE REALLY CARE AND SOME PEOPLE RARELY CARE SAYS STEPHEN A GREYSER PROFESSOR OF CONSUMER MARKETING AT HARVARD BUSINESS SCHOOL A MORE RECEPTIVE AUDIENCE IS TO BE FOUND IN POCKETS OF THE US WHERE JOB LOSSES ARE HIGH AND THE PEOPLE FEEL THEIR JOBS HAVE BEEN EXPORTED MILLER BREWING UNVEILED TWO MORE COMMERCIALS WITH THE C'MON LET ME SHOW YOU WHERE IT'S AT JINGLE ONE SHOWS YOUTHFUL TYPES SKIPPING OUT OF A LECTURE HALL FOR A COLD MILLER LITE THE OTHER IS A SCENE FROM AN IGLOO BAR LEO BURNETT CO CHICAGO CREATED THE COMMERCIALS ONE OF THOSE COMMERCIALS MAY END UP AIRING DURING THE SUPER BOWL SAID A COMPANY SPOKESMAN MILLER A UNIT OF PHILIP MORRIS COS BOUGHT TWO 30SECOND SPOTS DURING THE JAN 31 GAME AND HAS EARMARKED AT LEAST ONE OF THEM FOR MILLER LITE OTHER POSSIBILITIES ARE FRESH ITERATIONS OF THE C'MON IDEA NOW IN DEVELOPMENT THE SPOKESMAN SAID SC JOHNSON & SON INC SAID IT IS ABOUT TO START LOOKING FOR AN AGENCY FOR ITS WINDEX DRANO AND VANISH HOUSEHOLD BRANDS ESTIMATED COMBINED BILLINGS ARE 18 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS THE ADTRACKING FIRM SC JOHNSON RACINE WIS ACQUIRED THE BRANDS FROM BRISTOLMYERS SQUIBB CO LAST YEAR AND HAD HOPED TO ASSIGN THEM TO THE AGENCY THAT HANDLES MOST OF ITS BIGGEST BRANDS FOOTE CONE & BELDING COMMUNICATIONS CHICAGO BUT ANOTHER FOOTE CONE CLIENT CLOROX CO SQUAWKED AT THE ASSIGNMENT BECAUSE IT SEES A CONFLICT BETWEEN ITS FORMULA 409 AND LIQUID PLUMMR PRODUCTS AND THE JOHNSON BRANDS SC JOHNSON SAYS IT IS LOOKING FOR A LARGE HIGHQUALITY CHICAGOAREA AGENCY AND HOPES TO HAVE ONE NAILED DOWN IN MIDSPRING WHO'S NEWS GEOFFREY CHARLTONPERRIN PRESIDENT OF DFM TATHAM CHICAGO WAS NAMED CHIEF EXECUTIVE OF THE AGENCY FORMERLY THE CHICAGO OFFICE OF DELLA FEMINA MCNAMEE MR CHARLTONPERRIN AGE 52 HIRED ALLAN L MAGER 51 AS MANAGING DIRECTOR ALBERT JAY ROSENTHAL 64 CONTINUES AS CHAIRMAN JOHN WIEGAND 66 RETIRED AS VICE CHAIRMAN DFM TATHAM IS A UNIT OF PARIS AGENCY EURO RSCG 9301150056 930115 LAW LEGAL BEAT DECLINE IN LAW FIRMS' EARNINGS THREATENS RETIREMENT BENEFITS BY EDWARD FELSENTHAL AND MILO GEYELIN STAFF REPORTERS OF THE WALL STREET JOURNAL LAWYERS' RETIREMENT PACKAGES MAY BE THREATENED AS SLACKENING PROFITS CONTINUE TO TUG AT THE SECURITY BLANKETS OF LAWFIRM PARTNERSHIPS A SURVEY BY ACCOUNTING FIRM ERNST & YOUNG FOUND THAT MORE THAN 70 OF LAW FIRMS MAY NOT BE PUTTING ASIDE ENOUGH MONEY TO PAY ALL THE BENEFITS PROMISED TO RETIRED PARTNERS INSTEAD MOST FIRMS ARE PAYING THE BENEFITS WHEN THEY COME DUE OUT OF CURRENT EARNINGS BENEFIT SPECIALISTS SAY THAT BECAUSE EARNINGS HAVE BEEN SHARPLY LOWER IN RECENT YEARS SOME LAW FIRMS WILL HAVE TO CUT THE BENEFITS CURRENTLY PAID OR RISK DRIVING AWAY YOUNG PARTNERS ANGRY ABOUT THEIR INCOMES BEING SIPHONED TO PAY RETIREES THE BENEFITS AT RISK ARE MAINLY THOSE IN SOCALLED NONQUALIFIED PLANS MANY LARGE LAW PARTNERSHIPS HAVE IMPLEMENTED SUCH PLANS TO PROVIDE PARTNERS WITH EXTRA RETIREMENT INCOME BEYOND THE AMOUNTS ALLOWED IN PLANS THAT QUALIFY FOR CERTAIN TAX BENEFITS AND ARE REGULATED BY FEDERAL LAW PARTNERSHIPS IN OTHER INDUSTRIES SUCH AS CONSULTING AND ACCOUNTING MAY FACE SIMILAR PROBLEMS WITH THEIR RETIREMENT PLANS THE BENEFIT SPECIALISTS SAY CORPORATIONS ON THE OTHER HAND ARE MORE LIKELY THAN PARTNERSHIPS TO FULLY FUND THEIR NONQUALIFIED PLANS BECAUSE THEY CAN GET TAX DEDUCTIONS FOR SETTING UP CERTAIN KINDS OF FUNDING DEVICES THEY CAN ALSO USE STOCK AS A RETIREMENT BENEFIT UNDER A NONQUALIFIED PLAN DURING THE 1980S MANY LAW FIRMS GREW AT UNPRECEDENTED RATES OFTEN TAKING ON DOZENS OF NEW PARTNERS NOW THAT THEY'VE COME BACK TO REALITY SAID JAKE WEICHHOLZ A PARTNER AT ERNST & YOUNG WHO WORKS WITH LAW FIRM CLIENTS THEY'VE GOT THESE OBLIGATIONS TO PAY RETIRED PARTNERS IN AMOUNTS THAT MAY EVEN EXCEED WHAT SOME ACTIVE PARTNERS EARN HALF THE FIRMS SURVEYED SAID THEY HAVE MODIFIED THEIR PLANS WITHIN THE PAST FIVE YEARS MOSTLY BY DECREASING PLAN BENEFITS THE SURVEY EXAMINED THE RETIREMENT PLANS OF 55 NEW YORK LAW FIRMS THE GROUP COMPRISED 22 FIRMS WITH FEWER THAN 50 LAWYERS 15 FIRMS WITH 50 TO 274 LAWYERS AND 18 FIRMS WITH 275 OR MORE LAWYERS THE SURVEY'S FINDINGS WOULD APPLY TO LAW FIRMS THROUGHOUT THE COUNTRY SAID MARK SIVIN NATIONAL DIRECTOR OF LAW FIRM SERVICES AT ERNST & YOUNG ACCORDING TO THE SURVEY MOST OF THE FIRMS HAVEN'T CALCULATED THE COST OF GUARANTEEING THAT THE MONEY WILL BE THERE WHEN IT IS NEEDED IT'S IMPORTANT TO FIRST KNOW WHAT YOU OWE BEFORE THINKING ABOUT HOW TO PAY IT SAID MR SIVIN BENEFITS SPECIALISTS SAY SOME LAW FIRMS MAY NEED TO MAKE RADICAL CHANGES IN THEIR PLANS EITHER BY STARTING TO PUT ASIDE MORE MONEY TO FUND THE PLANS OR BY CAPPING THE AMOUNT OF CURRENT EARNINGS THAT CAN BE SPENT ON RETIREMENT BENEFITS OTHERWISE SAID MARK VOGEL OF THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES YOU COULD HAVE SO MUCH PRESSURE ON THE ACTIVE PARTNERS THAT YOU HAVE RAINMAKERS ABANDONING SHIP MR VOGEL SAID WEIL GOTSHAL'S RETIREMENT PLAN HAS BEEN FULLY FUNDED SINCE 1975 SO PAYMENTS DON'T HAVE TO COME FROM CURRENT EARNINGS BUT LAWYERS SAY ANY CHANGES IN THE NONQUALIFIED RETIREMENT PLANS WOULD LIKELY AFFECT ONLY CURRENT PARTNERS NOT THOSE WHO HAVE RETIRED THE LIKELIHOOD IS RETIREES WOULD BE GRANDFATHERED SAID JAY WAKS OF THE NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER NOBODY WANTS TO CHEAT THEIR RETIRED PARTNERS BECAUSE THERE BUT FOR THE GRACE OF GOD GO I IN A FEW YEARS THE NUMBER OF LAWSUITS AGAINST BREAST IMPLANT MANUFACTURERS IS SKYROCKETING IN THE TEXAS COURT DISTRICT WHERE A JURY RETURNED A 25 MILLION VERDICT AGAINST BRISTOLMYERS SQUIBB CO LAST MONTH SINCE THE DEC 23 AWARD THE COURT IN HARRIS COUNTY HAS SEEN A DRAMATIC INCREASE IN SIMILAR BREAST IMPLANT SUITS AGAINST A GROWING NUMBER OF DEFENDANTS SAID KATHERINE TYRA THE DISTRICT CLERK OF COURTS HARRIS COUNTY INCLUDES HOUSTON AND SURROUNDING SUBURBS ONE OF THE LARGEST METROPOLITAN AREAS IN THE COUNTRY AT THE END OF DECEMBER 1125 BREAST IMPLANT CASES WERE PENDING IN STATE DISTRICT COURT THERE SAID MS TYRA THE NUMBER OF SUCH CASES JUMPED 35 IN THE FIRST TWO WEEKS OF JANUARY WHEN ABOUT 400 NEW CASES WERE FILED BESIDES BRISTOL MYERS DEFENDANTS IN THE SUITS INCLUDE DOW CORNING CORP A JOINT VENTURE BETWEEN CORNING INC AND DOW CHEMICAL CO LOCAL HOSPITALS PHYSICIANS AND SURGEONS PLAINTIFFS' ATTORNEY JOHN O'QUINN WHO WON THE 25 MILLION JUDGMENT SAID HIS FIRM HAS MORE THAN 1000 CASES MANY OF WHICH FLOODED IN AFTER THE JURY AWARD MR O'QUINN ATTRIBUTED THE HIGH NUMBER OF SUITS IN HARRIS COUNTY TO A HIGH NUMBER OF IMPLANT RECIPIENTS AND SAID MORE SUITS ARE LIKELY THE AWARD HAS RESULTED IN WOMEN SEEKING MEDICAL HELP AND ATTORNEYS TO DETERMINE THEIR LEGAL RIGHTS SAID MR O'QUINN THAT HAS RESULTED IN MORE LAWSUITS MR O'QUINN'S CLIENT WAS A 45YEAROLD WOMAN WHO ALLEGED THAT HER IMPLANTS WERE DEFECTIVE BECAUSE THEY RUPTURED RELEASING SILICONE THROUGHOUT HER BODY AMONG THE AILMENTS THAT RESULTED SHE ALLEGED WERE AN AUTOIMMUNE DISORDER CHRONIC INFECTIONS AND FATIGUE PUNITIVE DAMAGES WERE AWARDED BECAUSE OF EVIDENCE THAT BRISTOLMYERS MARKETED THE IMPLANTS WITHOUT ADEQUATE TESTING FOR HEALTH AND SAFETY ACCORDING TO MR O'QUINN NEW YORKBASED BRISTOLMYERS WHICH IS APPEALING THE VERDICT AND THE AWARD DECLINED TO COMMENT HARRIS COUNTY DISTRICT COURT IS BEST KNOWN AS THE VENUE FOR THE 103 BILLION DAMAGE AWARD TO PENNZOIL CO AGAINST TEXACO INC IN 1986 STATISTICS COMPILED IN HARRIS COUNTY BY JURY VERDICTS RESEARCH INC AN INDEPENDENT RESEARCH COMPANY SUGGEST THAT WHILE HARRIS COUNTY LAGS BEHIND THE NATIONAL RATE IN PROPLAINTIFF JUDGMENTS AWARDS TEND TO BE HIGHER PLAINTIFFS PREVAILED IN 41 OF CASES THAT WENT TO TRIAL IN HARRIS COUNTY DISTRICT COURT IN 1991 COMPARED WITH A NATIONAL RATE OF 58 BUT PLAINTIFFS' AWARDS EXCEEDED 1 MILLION IN 11 OF CASES THEY WON IN HARRIS COUNTY COMPARED WITH 7 NATIONWIDE LIFE INSURANCE RATES BASED ON SEX AREN'T DISCRIMINATORY A MARYLAND STATE JUDGE RULED BALTIMORE CIRCUIT JUDGE ROBERT HAMMERMAN STRUCK DOWN AN ORDER BY THE STATE INSURANCE COMMISSIONER THAT SAID DISPARATE RATES FOR MEN AND WOMEN VIOLATED THE STATE'S EQUAL RIGHTS AMENDMENT THE RULING IS A SETBACK FOR WOMEN'SRIGHTS GROUPS WHICH FOR MORE THAN A DECADE HAVE FOUGHT SEXBASED INSURANCE RATES AS DISCRIMINATORY MONTANA IS THE ONLY STATE THAT REQUIRES SIMILAR RATES FOR MEN AND WOMEN THE STATE'S INSURANCE COMMISSIONER IN JULY FOUND THAT HIGHER RATES FOR MEN MADE ACTUARIAL SENSE BUT THE COMMISSIONER SAID THE EQUAL RIGHTS AMENDMENT OVERRODE SUCH CONCERNS THE JUDGE DISAGREED HOWEVER FINDING THAT INSURANCE RATES FALL UNDER AN EXCEPTION TO THE ANTIDISCRIMINATION LAW INVOLVING IMMUTABLE PHYSICAL CHARACTERISTICS IN THE PAST MARYLAND COURTS HAVE USED THAT EXCEPTION TO FIND THAT LAWS REFERRING TO PREGNANCY FOR INSTANCE DON'T VIOLATE THE EQUAL RIGHTS AMENDMENT THE JUDGE ALSO SAID THE STATE HAS A LEGITIMATE INTEREST IN KEEPING THE CURRENT RATE SYSTEM THE INSURANCE COMMISSIONER HAD ESTIMATED THAT COMPLYING WITH HIS ORDER WOULD DRAIN 30 MILLION FROM THE MARYLAND OPERATIONS OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF NEW YORKBASED EQUITABLE COS THAT WAS A PARTY IN THE CASE SMALL INSURERS MIGHT HAVE BEEN UNABLE TO ABSORB THE LOSSES THE COMMISSIONER SAID MARTHA DAVIS AN ATTORNEY WHO ARGUED THE CASE FOR THE NATIONAL ORGANIZATION FOR WOMEN SAID NOW WILL APPEAL INSURERS AREN'T ALLOWED TO CHARGE WHITE AND BLACK PEOPLE DIFFERENT RATES SIMPLY BECAUSE WHITES TEND TO LIVE LONGER AND SHOULDN'T BE ALLOWED TO CHARGE MEN AND WOMEN DIFFERENTLY EITHER SHE ARGUED WHO'S NEWS JOHN G ROBERTS JR PRINCIPAL DEPUTY SOLICITOR GENERAL FOR THE US WILL REJOIN THE WASHINGTON LAW FIRM HOGAN & HARTSON AS A PARTNER HE WILL BE DIRECTOR OF THE FIRM'S NEW APPELLATE PRACTICE SECTION DAVID G LEITCH DEPUTY ASSISTANT ATTORNEY GENERAL IN THE JUSTICE DEPARTMENT'S OFFICE OF LEGAL COUNSEL IS RETURNING TO HOGAN & HARTSON AS COUNSEL A NONPARTNER POSITION IN THE APPELLATE SECTION POLLUTION PROSECUTION THE NATIONAL DISTRICT ATTORNEYS ASSOCIATION HAS FORMED A CLEARINGHOUSE AND TRAINING CENTER FOR PROSECUTING CRIMINAL ENVIRONMENTAL CASES THE NATIONAL ENVIRONMENTAL CRIME PROSECUTION CENTER IN ALEXANDRIA VA SAYS FEDERAL STATE AND LOCAL GOVERNMENTS INCREASINGLY ARE TREATING POLLUTION CASES AS CRIMINAL RATHER THAN REGULATORY VIOLATIONS OPENING IN HONG KONG NEW YORK LAW FIRM WINTHROP STIMSON PUTNAM & ROBERTS WILL OPEN AN OFFICE IN HONG KONG LATER THIS YEAR WILLIAM CF KURZ A MEMBER OF THE LAW FIRM'S MANAGEMENT COMMITTEE WILL BE THE RESIDENT PARTNER IN THE FOURLAWYER OFFICE 9301150055 930115 BUSINESS BRIEF CORNING INC CHARGE OF 374 MILLION SET AGAINST 4THQUARTER PROFIT CORNING INC SAID IT WILL REPORT A 374 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS INCLUDING 300 MILLION FOR ADOPTING A NEW ACCOUNTING RULE AND 49 MILLION IN RESTRUCTURING CHARGES THE REMAINING 25 MILLION IS CORNING'S ONGOING COST OF COMPLYING WITH THE RULE FINANCIAL ACCOUNTING STANDARD NO 106 THE RULE REQUIRES COMPANIES TO SET ASIDE MONEY NOW TO FUND BENEFITS FOR FUTURE RETIREES RESULTS FOR THE QUARTER WILL BE REPORTED JAN 25 IN THE YEAREARLIER QUARTER ENDED DEC 29 THE CORNING NY COMPANY EARNED 856 MILLION OR 45 CENTS A SHARE ON SALES OF 8263 MILLION THE MOST SIGNIFICANT CHARGE IS 32 MILLION FOR RESTRUCTURING OPERATIONS IN BRAZIL THE REMAINING 17 MILLION RESTRUCTURING CHARGE IS CORNING'S SHARE OF A CHARGE ANNOUNCED WEDNESDAY BY DOW CORNING INC ITS 5050 JOINT VENTURE WITH DOW CHEMICAL CO 9301150054 930115 BUSINESS BRIEF PUGET SOUND BANCORP FIRM POSTS 4THQUARTER LOSS ON THE EVE OF ITS TAKEOVER PUGET SOUND BANCORP AHEAD OF ITS TAKEOVER BY KEYCORP POSTED A FOURTHQUARTER LOSS DUE TO A 256 MILLION RESTRUCTURING CHARGE STEMMING FROM THE ACQUISITION THE TACOMA WASH BANK HOLDING COMPANY REPORTED A LOSS OF 8 MILLION OR 41 CENTS A SHARE COMPARED WITH NET INCOME OF 14 MILLION OR 73 CENTS A SHARE A YEAR EARLIER FOR THE YEAR PUGET SOUND POSTED NET INCOME OF 453 MILLION OR 232 A SHARE DOWN ABOUT 8 FROM 491 MILLION OR 275 A SHARE IN 1991 WITHOUT THE RESTRUCTURING CHARGE AND AN ACCOUNTING CHANGE THE COMPANY WOULD HAVE HAD NET INCOME OF 175 MILLION AND 627 MILLION FOR THE FOURTH QUARTER AND YEAR RESPECTIVELY THE COMPANY SAID THE ACQUISITION BY KEYCORP ALBANY NY IS EXPECTED TO BE COMPLETED TODAY 9301150053 930115 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 HYDROQUEBEC 15 BILLION TWOPART ISSUE OF DEBENTURES PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE FIRST PART CONSISTING OF 500 MILLION OF DEBENTURES DUE FEB 1 2003 WAS PRICED AT PAR TO YIELD 7375 THE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE THE SECOND PART CONSISTING OF 1 BILLION OF DEBENTURES DUE FEB 1 2013 WAS PRICED AS 8 AT 99486 TO YIELD 8052 THE ISSUE WAS PRICED AT 65 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND BOTH PARTS ARE NONCALLABLE AND ARE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP HYDROQUEBEC IS AN ELECTRIC UTILITY OWNED BY THE QUEBEC GOVERNMENT HANSON OVERSEAS FINANCE BV 125 BILLION TWOPART ISSUE OF NOTES PRICED THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE FIRST PART CONSISTING OF 500 MILLION OF THREEYEAR NOTES DUE JAN 15 1996 WAS PRICED AS 5 1/2 AT 99749 TO YIELD 5592 OR 70 BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE THE SECOND PART CONSISTING OF 750 MILLION OF 10YEAR NOTES DUE JAN 15 2003 WAS PRICED AS 7 3/8 AT 99468 TO YIELD 7451 OR 80 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE NOTES ARE GUARANTEED BY THE ISSUER'S PARENT HANSON PLC PEPSICO INC 300 MILLION OF NOTES DUE JAN 15 1998 PRICED AS 6 1/8 AT 99306 TO YIELD 6289 OR 40 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS BERGEN BRUNSWIG CORP 250 MILLION TWOPART ISSUE OF NONCALLABLE NOTES PRICED THROUGH MERRILL LYNCH THE FIRST PART CONSISTING OF 100 MILLION OF NOTES DUE JAN 15 1996 WAS PRICED AS 5 5/8 AT 9983 TO YIELD 5687 OR 78 BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE THE SECOND PART CONSISTING OF 150 MILLION OF NOTES DUE JAN 15 2003 WAS PRICED AS 7 3/8 AT 9926 TO YIELD 7481 OR 83 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE BOTH PARTS ARE RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P DAYTON POWER & LIGHT CO 226 MILLION OF FIRST MORTGAGE BONDS DUE JAN 15 2026 PRICED AS 815 AT PAR TO YIELD 75 BASIS POINTS ABOVE THE 30YEAR TREASURY BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO THE BONDS ARE NONCALLABLE FOR 10 YEARS DAYTON POWER & LIGHT IS A SUBSIDIARY OF DPL INC DAYTON OHIO FIRST CHICAGO CORP 200 MILLION OF SUBORDINATED NOTES DUE JAN 15 2003 PRICED AS 7 5/8 AT 9955 TO YIELD 769 THE NONCALLABLE NOTES WERE PRICED AT 102 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CHEMICAL BANKING CORP 200 MILLION OF SUBORDINATED NOTES DUE JAN 15 2003 PRICED AS 7 5/8 AT 99852 TO YIELD 7646 THE NONCALLABLE ISSUE WAS PRICED AT 100 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS NORWEST FINANCIAL INC 150 MILLION OF SENIOR NOTES DUE JAN 15 2003 PRICED AS 7 AT 99 TO YIELD 7141 A SPREAD OF 50 BASIS POINTS OVER THE 10YEAR TREASURY NOTE RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH NORWEST FINANCIAL IS A UNIT OF NORWEST CORP MISSISSIPPI POWER & LIGHT CO 125 MILLION OF GENERAL AND REFUNDING MORTGAGE BONDS DUE JAN 15 2023 PRICED AS 865 AT 99816 TO YIELD 8667 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT 125 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO MISSISSIPPI POWER & LIGHT IS A UNIT OF ENTERGY CORP PRIVATE EXPORT FUNDING CORP 100 MILLION OF SECURED NOTES DUE JAN 31 2003 PRICED AS 690 AT 99935 TO YIELD 6909 THE NONCALLABLE ISSUE WAS PRICED AT 24 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BANK OF AMERICA OHIO 1069 MILLION OF OHIO BUILDING AUTHORITY AND DATA CENTER PROJECT REFUNDING BNDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 240 IN 1993 TO 610 IN 2008 THE BONDS ARE RATED SINGLEA BY MOODY'S AND SINGLEAPLUS BY S&P NORTH JERSEY DISTRICT WATER SUPPLY COMMISSION NJ 1015 MILLION OF SERIES 1993 REVENUE REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 245 IN 1993 TO 615 IN 2021 THE BONDS ARE INSURED BY MUNICPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P DISTRICT OF COLUMBIA 838 MILLION OF SERIES 1993 CERTIFICATES OF PARTICIPATION PRICED BY A PAINEWEBBER GROUP YIELDS RANGE FROM 610 IN 1997 TO 740 IN 2013 WHILE THE BONDS ARE NOT INSURED THE LEASE PAYMENTS HAVE AN UNDERLYING COLLATERAL A RESERVE FUND EQUAL TO ONE YEAR'S LEASE PAYMENT THE CERTIFICATES' LEASE PAYMENTS WILL DEPEND ON ANNUAL APPROPRIATIONS VOTED BY THE DISTRICT'S GOVERNMENT THE ISSUE IS RATED TRIPLEB BY S&P TEXAS HEALTH FACILITIES DEVELOPMENT CORP 705 MILLION OF HOSPITAL REVENUE BONDSPRICED BY A GOLDMAN SACHS GROUP YIELDS RANGE FROM 360 IN 1994 TO 640 IN 2023 THE BONDS ARE INSURED BY MUNICPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MIAMI BEACH FLA 543 MILLION OF SERIES 1993 GENERAL OBLIGATION REFUNDING BONDS PRICED BY A KIDDER PEABODY & CO GROUP YIELDS RANGE FROM 250 IN 1993 TO 555 IN 3003 THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P BRAZOS HIGHER EDUCATION AUTHORITY TEXAS INC 499 MILLION OF SERIES 1993A1 AND 1993A2 STUDENT LOAN REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP YIELDS RANGE FROM 500 IN 1996 TO 680 IN 2004 THE SERIES 1993A1 AND 1993A2 BONDS ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX THE BONDS ARE RATED DOUBLEA BY MOODY'S FEDERAL HOME LOAN BANK 100 MILLION OF FLOATINGRATE NOTES DUE JAN 26 1998 PRICED AT PAR TO YIELD 20 BASIS POINTS BELOW THE 11TH DISTRICT COST OF FUNDS INDEX RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE NONCALLABLE NOTES FLOAT MONTHLY AND PAY QUARTERLY WITH THE FIRST COUPON SET ON JAN 24 FEDERAL HOME LOAN BANKS 94 MILLION OF NOTES DUE JAN 26 1996 PRICED AT PAR TO YIELD 504 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT 14 BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH KINGDOM OF SWEDEN SOVEREIGN 100 BILLION YEN OF 4 5/8 EUROBONDS DUE FEB 4 1998 AT AN ISSUE AND REOFFERED PRICE OF 9953 VIA NOMURA INTERNATIONAL THE YIELD WAS SET AT 474 OR 55 BASIS POINTS ABOVE JAPANESE GOVERNMENT BOND NO 106 FEES 025 AUTOMOBILE PEUGEOT SA FRANCE TWO BILLION FRENCH FRANCS OF 8 1/2 EUROBONDS DUE FEB 15 2000 AT AN ISSUE AND REOFFER PRICE OF 9985 VIA PARIBAS CAPITAL MARKETS LTD THE YIELD WAS SET AT 853 ANNUALLY 70 BASIS POINTS ABOVE THE 8 1/2 OAT ISSUE DUE IN 2000 THE ISSUER IS A UNIT OF PEUGEOT SA FEES 035 INTERNATIONAL FINANCE CORP AGENCY 300 MILLION OF EUROBONDS DUE FEB 9 1996 PRICED AT 9991 VIA MORGAN STANLEY INTERNATIONAL THE YIELD WAS SET AT 516 OR 18 BASIS POINTS ABOVE THE 5 1/4 TREASURY NOTE DUE IN 1995 FEES 1 3/8 EKSPORTFINANS AS NORWAY 100 MILLION CANADIAN DOLLARS OF 7 3/4 EUROBONDS DUE NOV 5 1997 AT AN ISSUE PRICE OF 100088 VIA SALOMON BROTHERS INTERNATIONAL REOFFERED AT 98463 FOR A SPREAD OF 52 BASIS POINTS ABOVE THE 6 1/2 CANADIAN GOVERNMENT NOTES DUE FEBRUARY 1998 FEES 1 7/8 EUROFIMA AGENCY 100 MILLION OF 7 1/2 EUROBONDS DUE FEB 5 1998 AT AN ISSUE PRICE OF 101 VIA DAIWA EUROPE LTD REOFFERED AT 9975 TO YIELD 756 ANNUALLY 27 BASIS POINTS ABOVE THE 7 1/4 GILT ISSUE DUE IN MARCH 1998 FEES 1 1/2 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT AGENCY 100 MILLION MARKS OF REVERSE FLOATINGRATE NOTES DUE JAN 28 2000 AT AN ISSUE PRICE OF 10145 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT PAR WITH A COUPON OF 8 1/4 FOR THE FIRST YEAR THEREAFTER THE COUPON WILL BE 19 MINUS TWICE THE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 1 3/4 9301150052 930115 PHONE CONCERN TELLS OF CHAIRMAN'S GUILT ON GAMBLING COUNTS US LONG DISTANCE DISCLOSES HE WAS PUT ON PROBATION IN LATE 1970S EARLY 1980S BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL SAN ANTONIO TEXAS US LONG DISTANCE CORP IN ANNOUNCING PLANS FOR A MAJOR ACQUISITION MADE THE UNUSUAL DISCLOSURE THAT ITS CHAIRMAN PARRIS H HOLMES JR HAS TWICE PLEADED GUILTY TO GAMBLING CHARGES THE COMPANY A REGIONAL LONGDISTANCE AND OPERATORSERVICES CONCERN SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE VALUEADDED COMMUNICATIONS INC FOR STOCK VALUED AT ABOUT 100 MILLION AT THE SAME TIME US LONG DISTANCE DISCLOSED THE GUILTY PLEAS ADDING THAT MR HOLMES HAD SERVED 10 MONTHS PROBATION FOR BOOKMAKING ON FOOTBALL GAMES HE SAID LESS THAN 500000 OF BETTING WAS INVOLVED THE COMPANY NOTED THAT THE GAMBLING CHARGES OCCURRED DURING THE LATE 1970S AND EARLY 1980S WHEN MR HOLMES WAS A PRIVATE INVESTOR AND UNAFFILIATED WITH THE COMPANY AND THAT THE BOOKMAKING INDICTMENT AND MR HOLMES'S GUILTY PLEA IN THE CASE WERE WITHDRAWN AFTER HIS PROBATION ENDED MR HOLMES 49 YEARS OLD HAS BEEN AN OFFICER AT THE COMPANY SINCE 1986 AND CHAIRMAN SINCE 1987 MARK BUCKNER US LONG DISTANCE CHIEF FINANCIAL OFFICER SAID THE COMPANY DECIDED TO DISCLOSE THE INFORMATION TO AVOID LATER QUESTIONS IN CONNECTION WITH THE PROPOSED MERGER WE DON'T WANT THERE TO BE ANY CONFUSION OR SUPRISES ABOUT WHO OUR CHAIRMAN IS MR BUCKNER SAID WE'RE LAYING IT OUT ON THE TABLE FOR THE WORLD TO SEE THE ACQUISITION IF COMPLETED WILL MORE THAN DOUBLE THE SIZE OF US LONG DISTANCE THE COMPANY SAID IT EXPECTS THE COMBINED CONCERNS TO GENERATE MORE THAN 200 MILLION IN SALES FOR THE FISCAL YEAR ENDING SEPT 30 IN ADDITION THE COMPANY SAID THE DEAL WOULD BOOST ITS FISCAL 1993 EARNINGS BY ABOUT FIVE CENTS PER SHARE AND ITS FISCAL 1994 EARNINGS BY 20 CENTS A SHARE THE COMPANY REPORTED A PROFIT OF 39 MILLION OR 35 CENTS A SHARE ON REVENUE OF 85 MILLION IN FISCAL 1992 ANALYSTS HAVE PROJECTED FISCAL 1993 SALES OF 135 MILLION TO 145 MILLION VALUEADDED WHICH IS ON A CALENDAR YEAR POSTED NET INCOME OF 23 MILLION OR 28 CENTS A SHARE ON REVENUE OF 341 MILLION IN THE FIRST NINE MONTHS OF 1992 THE CHICAGOBASED COMPANY PROVIDES AUTOMATED CALL PROCESSING AND BILLING SERVICES TO LARGE TELEPHONESYSTEM USERS SUCH AS PRISONS HOTELS AND UNIVERSITIES IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY US LONG DISTANCE STOCK CLOSED AT 1825 A SHARE UNCHANGED WHILE VALUEADDED STOCK JUMPED 1 TO CLOSE AT 10 A SHARE UNDER TERMS OF THE PROPOSED ACQUISITION EACH OF VALUEADDED'S 94 MILLION SHARES OUTSTANDING WILL BE CONVERTED INTO 062 SHARES OF NEWLY ISSUED US LONG DISTANCE COMMON STOCK THE ACQUISITION IS SUBJECT TO THE SIGNING OF A DEFINITIVE AGREEMENT AND APPROVAL BY REGULATORY AGENCIES AND THE COMPANIES' SHAREHOLDERS LENDERS AND BOARDS 9301150051 930115 BUSINESS BRIEF CIRCLE K CORP BONDHOLDERS ASK FOR ORDER ON MORE INVESTOR DISCLOSURES CITING LINKS TO FINANCIAL SCANDALS IN SPAIN AND KUWAIT BONDHOLDERS IN CIRCLE K CORP ASKED A BANKRUPTCY COURT TO ORDER ADDITIONAL DISCLOSURES ABOUT KEY INVESTORS IN CK ACQUISITION CORP AN INTERNATIONAL INVESTMENT GROUP THAT OFFERED TO ACQUIRE AND REORGANIZE CIRCLE K FOR 3995 MILLION JUDGE GEORGE B NIELSON JR HADN'T RESPONDED TO THE MOTION BY LATE YESTERDAY BOTH CK ACQUISITION AND THE BONDHOLDERS' GROUP WERE TO MAIL SOLICITATIONS TODAY SEEKING VOTES FROM CREDITORS FOR THEIR COMPETING REORGANIZATION PLANS ONE OF THE PRIMARY INVESTORS IN CK ACQUISITION IS SHEIK ALI ALKHALIFA ALSABAH A FORMER FINANCE AND OIL MINISTER OF KUWAIT AND COUSIN OF THAT COUNTRY'S EMIR JABER ALAHMED ALSABAH BONDHOLDERS IN A MOTION YESTERDAY CITED FEARS THAT MR KHALIFA'S ASSETS MAY BE FROZEN OR SEIZED BY THE GOVERNMENT OF KUWAIT WHICH IS INVESTIGATING ALLEGED FRAUD AND MISMANAGEMENT BY THE KUWAIT INVESTMENT OFFICE BART BROWN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CIRCLE K SAID THE CONVENIENCE STORE CONCERN WILL FILE A RESPONSE TO THE BONDHOLDERS' MOTION 9301150050 930115 HEARD ON THE STREET HOT MONEY' FLIES TO NASDAQ PLAYGROUND BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WATCH THE HOT MONEY THE WALL STREET SAYING GOES WHENEVER THE MOST NIMBLE INVESTORS DART INTO A CERTAIN SECTOR THEY CAN COMMAND THE WHOLE MARKET'S ATTENTION AND SHAKE IT IN TAILWAGGINGTHEDOG FASHION RIGHT NOW THE HOT MONEY IS BLOWING TOWARD SMALL STOCKS ESPECIALLY IN TECHNOLOGY HUNDREDS OF TRADERS FROM WALL STREET TO THE CHICAGO STOCK INDEX FUTURES PITS ARE MONITORING NASDAQ THE PRINCIPAL MARKET FOR MANY OF THE HOTTEST TECHNOLOGY STOCKS NOW TRADERS' EYES NOW ARE RIVETED UPON SUCH WEATHER VANES AS THE TECHNOLOGYHEAVY NASDAQ INDUSTRIALS AND THE BROADER NASDAQ COMPOSITE INDEX MEANWHILE WHEN IT COMES TO MEASURING THE GENERAL DEMAND FOR STOCKS THEY'RE PAYING LESS ATTENTION TO THE DOW JONES INDUSTRIAL AVERAGE AND THE STANDARD & POOR'S 500 INDEX OF BIG STOCKS THERE'S A PERCEPTION THAT THE SMARTEST MONEY HAS DECLARED NASDAQ ITS PLAYGROUND ONE VETERAN TRADER OF S&P 500 STOCKINDEX FUTURES SAYS THAT INTEL AND MICROSOFT TWO STOCKS TRADING OVERTHECOUNTER ON NASDAQ HAVE REPLACED IBM AND GM AT THE CHICAGO MERC AS MARKET INDICATORS BACK IN THE 1980S A FEW TAKEOVER RUMORS COULD SEND THE WHOLE S&P 500 STOCK INDEX SOARING BUT NOW NOTHING IN THE LARGESTOCK MARKET HAS ANY JAZZ OR REFLECTS WHAT'S REALLY GOING ON SAYS THOMAS GALLAGHER HEAD OF STOCK TRADING AT OPPENHEIMER & CO TECHNOLOGY STOCKS ARE NASDAQ'S BRIGHTEST STARS LED BY INTEL THE SEMICONDUCTOR GROUP OF THE DOW JONES EQUITY MARKET INDEX HAS SOARED ABOUT 25 SINCE YEAR'S END COMPUTER STOCKS ARE UP MORE THAN 9 EXCLUDING BUMBLING BEHEMOTH INTERNATIONAL BUSINESS MACHINES THE OTC MARKET'S BESTKNOWN BENCHMARK IS THE NASDAQ COMPOSITE INDEX WHICH YESTERDAY SURGED 892 POINTS TO A RECORD 69570 BUT BECAUSE THAT INDEX INCLUDES MANY FINANCIAL STOCKS TRADERS INCREASINGLY ARE TURNING INSTEAD TO WATCHING OTHER NARROWER NASDAQ INDEXES ONE IS THE NASDAQ 100 INDEX WHICH CONSISTS OF THE NASDAQ MARKET'S 100 BIGGEST STOCKS AND CLOSED YESTERDAY AT A RECORD 76268 UP 1098 THE NASDAQ 100 INCLUDES AUTODESK APPLE COMPUTER INTEL MCI COMMUNICATIONS MICROSOFT AND MANY OTHER COMPUTERRELATED AND BIOTECHNOLOGY STOCKS ANOTHER WIDELY WATCHED INDEX THE NASDAQ INDUSTRIALS EXCLUDES BANKS AND IS SHOWN IN THE NEARBY CHART SEE ACCOMPANYING ILLUSTRATION WSJ JAN 15 1993 THESE DAYS MR GALLAGHER KEEPS HIS TRADER'S EAR TUNED TO THE SHOUTS FOR BUY AND SELL ORDERS FOR NASDAQ STOCKS AS HE WORKS HIS OWN ORDERS FOR NEW YORK STOCK EXCHANGE SHARES IN THE 1980S HE WOULDN'T HAVE BOTHERED WITH THE OTC ACTION BUT TODAY'S TRADER HAS TO BE AWARE OF EVERYTHING SAYS ROBERT KAHAN A PARTNER IN CHARGE OF EQUITY TRADING AT MONTGOMERY SECURITIES LASZLO BIRINYI WHO TRACKS MONEY FLOW IN STOCKS AT THE RESEARCH FIRM THAT BEARS HIS NAME SAYS MORE AND MORE INSTITUTIONAL MONEY IS BEING ALLOCATED TO SMALL STOCKS HE SUSPECTS MUCH OF IT IS IN THE FORM OF CUSTOMIZED PORTFOLIOS THAT TARGET SECTORS OF THE NASDAQ MARKET SUCH AS TECHNOLOGY OR RETAIL BECAUSE MANY NASDAQ STOCKS ARE SMALL THE ALLOCATION OF BIG MONEY OFTEN RESULTS IN MORE RAPID PRICE CHANGES ACTIVITY IS GOING TO BE SEEN QUICKER IN NASDAQ SAYS MR BIRINYI NASDAQ UNLIKE THE NEW YORK AND AMERICAN STOCK EXCHANGES HANDLES TRADES ON ELECTRONIC SCREENS MR BIRINYI SAYS DEALERS WORKING ON AN ELECTRONIC SYSTEM CAN REACT TO NEWS AND INFORMATION MORE QUICKLY THESE ARE GROWTHCYCLICAL STOCKS THESE YOUNG TECHNOLOGY COMPANIES HAVE THE ABILITY TO DELIVER EARNINGS IN THIS RECOVERY THAT'S THE KEY SAYS RONALD SLOAN PARTNER AT WOOD ISLAND ASSOCIATES IN LARKSPUR CALIF BUT THE BULL MARKET IN TECHNOLOGY STOCKS GOES BEYOND A CYCLICAL REBOUND HE SAYS NOW A HUGE REPLACEMENT CYCLE SEEMS TO BE UNDER WAY WITH CORPORATIONS AND INDIVIDUALS BUYING THE LATEST SOFTWARE AND HARDWARE TO REPLACE EQUIPMENT THAT ALREADY LOOKS ANCIENT THOUGH IT MAY BE ONLY THREE YEARS OLD YOU BUY A PERSONAL COMPUTER NOW AND IT'S JUST LIKE BUYING A CAR MR SLOAN SAYS YOU BUY A NEW FLEET EVERY THREE YEARS HE SPECULATES THAT THE VALUE OF INFORMATION SHIPPED ACROSS COMPUTER NETWORKS EQUALS THAT OF GOODS MOVING AROUND THE COUNTRY ON TRUCKS OR PLANES SANFORD ROBERTSON FOUNDING PARTNER OF ROBERTSON STEPHENS & CO A SAN FRANCISCO FIRM THAT HAS BROUGHT MANY A TECHNOLOGY STOCK TO MARKET SAYS A LOT OF INVESTORS THINK THE CLINTON ADMINISTRATION WILL SUPPORT SOCALLED SUNRISE INDUSTRIES A MORE TRADITIONAL DEMOCRAT MIGHT GO OUT AND SUPPORT A DYING STEEL INDUSTRY HE SAYS BUT NOW POLITICIANS LIKE INVESTORS REALIZE THAT SCIENCE AND TECHNOLOGY ARE THE CENTER OF AMERICAN LEADERSHIP IT'S WHERE WE REALLY ARE BEST AT WHAT WE DO MR ROBERTSON HAS ONE WARNING FOR INVESTORS SOARING SMALLSTOCK VALUATIONS WILL LURE DOZENS OF YOUNG COMPANIES TO OFFER STOCK THIS YEAR NOT ALL COMPANIES WILL BE GOOD BETS HE SAYS WE'VE TURNED DOWN A LOT OF BIOTECHNOLOGY DEALS THAT WEREN'T READY HE SAYS YOU REALLY HAVE TO SEPARATE THE WHEAT FROM THE CHAFF EXCHANGES ARE HOPING TO SHARE IN A SPILLOVER OF INVESTORS' ENTHUSIASM FOR OTC STOCKS THE PHILADELPHIA STOCK EXCHANGE SAYS OPTIONS VOLUME ON ITS XOC INDEX WHICH MIMICS THE NASDAQ 100 IS FOUR TIMES LAST YEAR'S AVERAGE THE CHICAGO BOARD OF TRADE THIS PAST MONDAY STARTED TRADING FUTURES ON WILSHIRE SMALL CAP INDEX OF 250 STOCKS STOCKINDEX OPTIONS TRADE ON THE PACIFIC EXCHANGE AND VOLUME HAS BEEN HEAVY THE CHICAGO MERCANTILE EXCHANGE WILL START TRADING STOCK INDEX FUTURES AND OPTIONS ON THE RUSSELL 2000 AN INDEX OF SMALL STOCKS NEXT MONTH THE RUSSELL PIT WILL BE NEAR THE BIG S&P 500 FUTURES PIT RUSSELL INDEX OPTIONS NOW TRADE ON THE CHICAGO BOARD OPTIONS EXCHANGE IF YOU ASK WHERE IS THE VALUE OF CORPORATE AMERICA YOU HAVE TO BE PERSUADED THAT THE S&P 500 STILL REPRESENTS THAT SAYS WILLIAM BRODSKY PRESIDENT OF THE CHICAGO MERC BUT IF YOU TALK TO PEOPLE ABOUT WHERE THE GROWTH POTENTIAL IS THEY ARE GOING TO SAY IT'S IN SMALL AND MEDIUMCAPITALIZATION STOCKS 9301150049 930115 BUSINESS BRIEF XILINX INC CHIP MAKER'S RESULTS SURGED FOR 3RD PERIOD STOCK SOARS XILINX INC A MAKER OF PROGRAMMABLE COMPUTER LOGIC CHIPS SAID BURGEONING DEMAND BOOSTED FISCAL THIRDQUARTER REVENUE 43 AND PROFIT 22 SHARES OF THE SAN JOSE CALIF COMPANY SOARED 4375 ON THE NEWS TO CLOSE AT 30125 ON VOLUME OF 29 MILLION SHARES IN NATIONAL OVERTHECOUNTER TRADING FOR THE PERIOD ENDED JAN 2 XILINX POSTED PROFIT OF 7 MILLION OR 30 CENTS A SHARE UP FROM 57 MILLION OR 24 CENTS A SHARE THE YEAR EARLIER REVENUE ROSE TO 462 MILLION FROM 322 MILLION NINEMONTH PROFIT ROSE 85 TO 192 MILLION OR 81 CENTS A SHARE FROM 177 MILLION OR 74 CENTS A SHARE REVENUE SPURTED 27 TO 1278 MILLION FROM 1004 MILLION BERNARD VONDERSCHMITT PRESIDENT SAID 1993 WILL BE ANOTHER YEAR OF RECORD REVENUE AND EARNINGS FOR THE COMPANY 9301150048 930115 BUSINESS BRIEF NACCO INDUSTRIES INC COMPANY TO TAKE A CHARGE TO COVER WORKERS' BENEFITS NACCO INDUSTRIES INC SAID IT WILL TAKE A CHARGE OF 80 MILLION TO 120 MILLION FOR THE FOURTH QUARTER TO COVER RETIRED COAL WORKERS' HEALTH BENEFITS THE ONETIME CHARGE IS THE RESULT OF A LAW PASSED LAST YEAR THAT FORCES COMPANIES TIED IN ANY WAY TO CONCERNS THAT ONCE EMPLOYED COAL WORKERS TO PAY BENEFITS FOR THOSE WORKERS NACCO SAID HALF THE 2800 RETIREES WHOSE BENEFITS IT MUST COVER NEVER WORKED FOR ITS BELLAIRE CORP SUBSIDIARY ANALYSTS HAD PROJECTED THAT THE MARYLAND HEIGHTS OHIO COMPANY EARNED 113 A SHARE FOR THE FOURTH QUARTER AND 277 A SHARE FOR THE YEAR FOR THE YEAREARLIER QUARTER THE COAL PRODUCER AND FORKLIFT AND SMALLAPPLIANCE MAKER EARNED 102 MILLION OR 114 A SHARE FOR 1991 NACCO EARNED 205 MILLION OR 231 A SHARE STEVEN M BILLICK VICE PRESIDENT AND CONTROLLER SAID NACCO ALONG WITH SEVERAL OTHER COMPANIES IS CONTEMPLATING FILING SUIT OVER THE LAW I DON'T SEE WHY WE SHOULD BE COVERING OTHER COAL WORKERS JUST BECAUSE WE MINED COAL HE SAID 9301150047 930115 MARKETING BRIEF NEWS CORP FOX INC CREATES DIVISION COMBINING MUSIC VENTURES FOX INC SAID IT HAS GATHERED ITS MUSICRELATED VENTURES INTO A NEW DIVISION FOX MUSIC GROUP SIGNALING PLANS TO BECOME MORE AGGRESSIVE IN THE MUSIC BUSINESS THE NEW GROUP WILL INCLUDE FOX RECORDS A LABEL LAUNCHED IN SEPTEMBER TWO FOX MUSIC PUBLISHING COMPANIES AND THE FOX MUSIC DEPARTMENT WHICH PROVIDES MUSIC FOR FOX MOVIE AND TELEVISION PROJECTS ELLIOT LURIE 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THE MUSIC GROUP HAVING BEEN SENIOR VICE PRESIDENT OF THE FOX MUSIC DEPARTMENT MR LURIE SAID HE EXPECTS FOX RECORDS TO PRODUCE FROM EIGHT TO 12 MOVIE SOUNDTRACK ALBUMS A YEAR AND IN 1993 THE LABEL HOPES TO RELEASE HALF A DOZEN POP ALBUMS AS WELL THE LABEL'S FIRST ALBUM WAS THE SOUNDTRACK TO HOME ALONE 2 ALL OF THE COMPANY'S RECORDS WILL BE DISTRIBUTED BY BERTELSMANN AG'S BERTELSMANN MUSIC GROUP FOX INC IS A UNIT OF NEWS CORP 9301150046 930115 BUSINESS BRIEF ENSERCH CORP AWARD TOTALING 57 MILLION MADE BY COURT AGAINST FIRM ENSERCH CORP SAID A DELAWARE CHANCERY COURT RULED AGAINST IT AWARDING PLAINTIFFS A TOTAL OF 57 MILLION ENSERCH CORP ENSERCH EXPLORATION INC AND CERTAIN INDIVIDUAL DIRECTORS OF ENSERCH EXPLORATION ARE NAMED IN THE CLASSACTION LAWSUIT FILED IN APRIL 1989 THE SUIT CONCERNS AN EXCHANGE OFFER TO UNIT HOLDERS OF ENSERCH EXPLORATION PARTNERS LTD FOR STOCK IN ENSERCH CORP PLUS CASH THE COURT HELD THAT THE EXCHANGE RATIO WAS NOT A FAIR PRICE AND THAT THE PROSPECTUS DID NOT ADEQUATELY DISCLOSE THE BASIS FOR THAT PRICE SAID AN ENSERCH SPOKESWOMAN ENSERCH CORP AN ENERGY ENGINEERING AND CONSTRUCTION CONCERN SAID IT WILL APPEAL THE CASE TO THE DELAWARE SUPREME COURT BECAUSE THE COURT MADE A NUMBER OF LEGAL AND FACTUAL ERRORS THE COMPANY HASN'T YET MADE A RESERVE TO PAY THE AWARD IF THE APPEAL FAILS 9301150045 930115 ALLSTATE IS SUSPENDING WRITING OF POLICIES FOR FLORIDA HOMES NORTH BROOK ILL ALLSTATE INSURANCE CO SAID IT WOULD INDEFINITELY STOP WRITING NEW HOMEOWNERS INSURANCE POLICIES IN FLORIDA FOLLOWING THE LEAD OF SEVERAL OTHER COMPANIES ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO HAD A LOSS OF 25 BILLION ON HURRICANE ANDREW THE COMPANY SAID IT COULDN'T KEEP UP WITH ALL THE DEMAND FOR INSURANCE FROM HOMEOWNERS WHO COULDN'T FIND INSURANCE ELSEWHERE IT WILL CONTINUE TO RENEW EXISTING POLICIES NINE INSURERS HAVE FAILED IN FLORIDA AND SEVERAL OTHERS HAVE STOPPED WRITING HOMEOWNERS INSURANCE IN THE STATE IN ADDITION STATE FARM MUTUAL AUTOMOBILE INSURANCE CO BLOOMINGTON ILL FLORIDA'S LARGEST INSURER IS MAKING AN EFFORT TO WRITE FEWER POLICIES TO COPE WITH THE SHORTAGE OF INSURANCE THE STATE HAS SET UP A GOVERNMENT FUND TO INSURE HOMEOWNERS WHO CAN'T GET COVERAGE ANYWHERE ELSE INDUSTRY EXPERTS PREDICT AS MANY AS 500000 HOMEOWNERS WILL GET THEIR INSURANCE FROM THE STATE SEPARATELY STANDARD & POOR'S CORP CITING 17 BILLION IN INSURANCE COMPANY LOSSES FROM HURRICANES ANDREW AND INIKI SAID THE AVAILABILITY OF REINSURANCE AGAINST CATASTROPHES HAS EVAPORATED IT SAID THERE IS NO MORE THAN 300 MILLION IN COVERAGE AVAILABLE FOR ANY COMPANY WHICH OBVIOUSLY ISN'T ENOUGH GIVEN THAT MANY INSURANCE COMPANIES HAD MORE THAN 1 BILLION IN LOSSES ON HURRICANE ANDREW REINSURANCE PRICES HAVE ALSO SOARED FOR BIG INSURERS THE EFFECTS OF THE REINSURANCE CRUNCH WILL BE RELATIVELY MINOR BUT SMALL REGIONAL INSURERS FORCED TO REDUCE THEIR EXPOSURE TO HURRICANE LOSSES IN THE ABSENCE OF AFFORDABLE REINSURANCE WILL WRITE FEWER POLICIES S&P SAID S&P SAID THE LOSSES FROM HURRICANE ANDREW WILL NOT BE ENOUGH TO IMMEDIATELY TURN THE CYCLE THAT HAS DRIVEN DOWN COMMERCIAL INSURANCE RATES SINCE 1987 S&P'S OPINION RUNS COUNTER TO THAT OF MANY WALL STREET STOCK ANALYSTS 9301150044 930115 BUSINESS BRIEF PARAMETRIC TECHNOLOGY CORP PROFIT MORE THAN DOUBLED FOR FIRM'S FISCAL 1ST PERIOD PARAMETRIC TECHNOLOGY CORP SAID NET INCOME MORE THAN DOUBLED FOR ITS FISCAL FIRST QUARTER ON A 97 REVENUE GAIN IN OVERTHECOUNTER TRADING THE WALTHAM MASS COMPANY'S SHARES ROSE 5 TO 5850 FOR THE QUARTER ENDED JAN 2 THE MAKER OF COMPUTERIZED DESIGN SOFTWARE POSTED NET INCOME OF 83 MILLION OR 29 CENTS A SHARE IN THE YEARAGO QUARTER THE COMPANY HAD NET INCOME OF 38 MILLION OR 14 CENTS A SHARE REVENUE ROSE TO 325 MILLION FROM 165 MILLION STEVEN C WALSKE PRESIDENT AND CHIEF EXECUTIVE SAID REPEAT SOFTWARE PURCHASES ACCOUNTED FOR 80 OF FISCAL 1993 FIRST QUARTER REVENUE BUT PARAMETRIC ALSO ADDED 293 NEW CUSTOMERS DURING THE QUARTER INCREASING THE SIZE OF ITS CUSTOMER BASE TO ALMOST 2300 MR WALSKE SAID OUR AGGRESSIVE PRODUCT DEVELOPMENT STRATEGY AND RAPID EXPANSION OF OUR SALES AND SUPPORT CAPABILITIES WORLDWIDE POSITION US WELL FOR CONTINUED REVENUE AND EARNINGS GROWTH THROUGHOUT THE REMAINDER OF FISCAL 1993 HE SAID 9301150043 930115 CHEMICAL FIRMS IN US KEEP EYE ON EUROPE ANALYSTS BELIEVE REBOUND THERE WILL REVITALIZE INDUSTRY EARNINGS HERE BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL TO GAUGE THE FINANCIAL HEALTH OF THE US CHEMICAL INDUSTRY ANALYSTS ARE TAKING EUROPE'S ECONOMIC TEMPERATURE WEAK EUROPEAN ECONOMIES AND SLUGGISH CHEMICAL SALES THERE WERE A MAJOR REASON FOR POOR EARNINGS LAST QUARTER AT LEADING US CHEMICAL COMPANIES INCLUDING DOW CHEMICAL CO AND DU PONT CO TO MONSANTO CO EARNINGS AT EUROPE'S CHEMICAL INDUSTRY GIANTS INCLUDING GERMANY'S BASF AG FRANCE'S RHONEPOULENC SA AND BRITAIN'S IMPERIAL CHEMICAL INDUSTRIES PLC ARE IN THE DUMPS FOR THE SAME REASON BUT THIS YEAR ANALYSTS AND INDUSTRY OFFICIALS ARE COUNTING ON A SECONDHALF REBOUND IN EUROPE'S ECONOMIC HEALTH TO REVITALIZE US CHEMICAL INDUSTRY EARNINGS OPERATING EARNINGS FOR THE INDUSTRY OUGHT TO BE UP 20 FOR 1993 ASSUMING EUROPE TURNS UP BY MID'93 SAYS WILLIAM YOUNG AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP BUT UNTIL THEN THE MAJOR CYCLICAL COMPANIES ARE LIKELY TO MOVE SIDEWAYS FOR AT LEAST A COUPLE OF MONTHS CAUTIONS HARVEY STOBER AN ANALYST WITH DEAN WITTER REYNOLDS INC THE EUROPEAN CHEMICAL INDUSTRY SOUNDED A CAUTIOUS NOTE ABOUT ITS OWN PROSPECTS THE EUROPEAN CHEMICAL INDUSTRY COUNCIL ESTIMATED THIS WEEK THAT WESTERN EUROPE'S GROSS DOMESTIC PRODUCT WILL GROW BY A PALTRY 1 THIS YEAR CHEMICAL PRICES WILL REMAIN FLAT IN 1993 COMPARED WITH LAST YEAR IN WEST GERMANY FRANCE AND THE NETHERLANDS THE COUNCIL ADDED IN THE UK AND ITALY CHEMICAL PRICES ARE EXPECTED TO RISE 3 THIS YEAR BUT THOSE PROJECTED INCREASES COME ON THE HEELS OF LOCAL CURRENCY DEVALUATIONS IN 1992 ALSO WEIGHING ON FOURTHQUARTER RESULTS IN THE US AND SKEWERING COMPARISONS WITH YEARAGO FIGURES ARE A HOST OF ONETIME RESTRUCTURING AND OTHER CHARGES MANY CHEMICAL COMPANIES SAY THEY ARE TAKING IN THE FOURTH QUARTER TO CUT COSTS AND BOOST THEIR OPERATING EFFICIENCY YEAREARLIER FOURTHQUARTER RESULTS ALSO REFLECT HEFTY ONETIME CHARGES AT SEVERAL COMPANIES DOW CHEMICAL MIDLAND MICH IS LIKELY TO POST EARNINGS FROM CONTINUING OPERATIONS OF ABOUT 40 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH OPERATING EARNINGS OF 54 CENTS A SHARE IN THE YEAREARLIER PERIOD ANALYSTS PROJECTED AFTER TAKING A 370 MILLION PRETAX CHARGE IN THE YEAREARLIER PERIOD TO COVER PLANT CLOSINGS AND WRITING DOWN CERTAIN ASSETS DOW CHEMICAL REPORTED A FOURTHQUARTER 1991 LOSS OF 92 MILLION OR 35 CENTS A SHARE DOW CHEMICAL'S EUROPEAN OPERATIONS ARE DOMINATED BY THE HIGHLY CYCLICAL MARKET FOR THE PLASTIC PRECURSORS ETHYLENE AND ETHYLENE DERIVATIVES SUCH AS POLYETHYLENE WHICH ARE CURRENTLY NEAR CYCLICAL TROUGHS WORLDWIDE OVERSUPPLY OF THESE PRODUCTS AND SLACK DEMAND IN EUROPE HAVE SEVERELY DEPRESSED PROFITS IN LAST YEAR'S FIRST NINE MONTHS FOR INSTANCE DOW'S PLASTICS OPERATING PROFIT SKIDDED BY ABOUT ONETHIRD TO 297 MILLION FROM 440 MILLION IN THE YEAREARLIER NINE MONTHS LARGELY AS A RESULT ITS EUROPEAN OPERATING PROFIT PLUNGED TWOTHIRDS TO 135 MILLION FROM 419 MILLION IN THE FIRST NINE MONTHS OF 1991 BY COMPARISON DOW'S US OPERATING PROFIT IN THE FIRST NINE MONTHS ACTUALLY INCREASED ABOUT 9 TO 112 BILLION FROM 102 BILLION IN THE YEAREARLIER PERIOD DU PONT OF WILMINGTON DEL IS ALSO A BIG SELLER IN EUROPE ESPECIALLY IN ITS SYNTHETIC FIBERS DIVISION WITH THE EXCEPTION OF A STRONG SHOWING FROM ITS GENEVABASED LYCRA ELASTIC FIBERS DIVISION FIBER SALES HAVE BEEN HURT BY THE EUROPEAN SLOWDOWN RELATIVELY LOW WORLDWIDE OIL PRICES IN THE FOURTH QUARTER WERE AN ADDITIONAL DRAG ON OPERATING PROFIT AT DU PONT'S CONOCO OIL UNIT DU PONT OPERATING EARNINGS ALSO HAVE BEEN REDUCED BY CURRENCY DEVALUATIONS WITHIN EUROPE THE COMPANY HAS MANY OF ITS FIBER AND OTHER PRODUCTION PLANTS IN SUCH STRONG CURRENCY NATIONS AS THE NETHERLANDS BUT IT ALSO SELLS INTO SUCH COUNTRIES SUCH AS ITALY WHOSE CURRENCY HAS DECLINED BY 20 TO 25 OVER THE PAST SEVERAL MONTHS THE SLACK EUROPEAN ECONOMIES HAVE PREVENTED DU PONT OR OTHER CHEMICAL PRODUCERS IN EUROPE FROM RAISING PRICES ENOUGH IF AT ALL TO COMPENSATE FOR THE DEVALUATIONS ANALYSTS PREDICT THAT DU PONT EARNED 35 CENTS TO 40 CENTS A SHARE IN THE FOURTH QUARTER AFTER TAKING REQUIRED ACCOUNTING CHARGES TO REFLECT FUTURE HEALTH CARE COSTS FOR RETIREES IN THE YEARAGO FOURTH QUARTER DU PONT REPORTED OPERATING PROFIT OF 35 CENTS A SHARE BEFORE NONRECURRING CHARGES MONSANTO ST LOUIS IS EXPECTED TO REPORT FOURTHQUARTER OPERATING PROFIT OF 15 CENTS TO 20 CENTS A SHARE COMPARED WITH 53 CENTS A SHARE IN THE YEAREARLIER QUARTER MANY ANALYSTS PROJECTED WEAK CHEMICAL SALES IN EUROPE DEPRESSED MONSANTO'S FOURTHQUARTER EARNINGS SAYS ANANTHA RAMAN AN ANALYST WITH SG WARBURG & CO ALSO PULLING DOWN MONSANTO'S EARNINGS WERE HEAVY NEW DRUG INTRODUCTION COSTS AT THE COMPANY'S SEARLE DRUG UNIT AS WELL AS DECLINING SALES OF ITS CALAN ANTIHYPERTENSION MEDICINE ON THE PLUS SIDE FOR MONSANTO IT WAS A GOOD QUARTER FOR ROUNDUP THE COMPANY'S BESTSELLING HERBICIDE SAID DEAN WITTER'S MR STOBER HE ESTIMATES THAT THE COMPANY WILL REPORT FOURTHQUARTER OPERATING EARNINGS PER SHARE OF 23 CENTS A SHARE 9301150042 930115 THEY'RE PLAYING A GAME OF CHICKEN TO DECIDE WHO RULES THE ROOST BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FINALLY THE PERFECT MARRIAGE OF CABLE PROGRAMMING AND COUCHPOTATO CUSTOMS PROVIDENCE JOURNAL CO SAID YESTERDAY IT WILL INTRODUCE THE TELEVISION FOOD NETWORK THIS FALL CAVING IN TO THE CRAVING OF VIEWERS HUNGRY FOR GOOD FOOD SHOWS IN SHORT ORDER TV WILL LET VIEWERS WATCH WHAT THEY EAT WHILE THEY EAT WHAT THEY WATCH THINK ABOUT IT SAYS REESE SCHONFELD A TVFN FOUNDER WE COULD DO CHARLES KURALT COOKING ON THE ROAD' OR GET THE SISKEL AND EBERT' OF COOKING MR SCHONFELD PROMISES TVFN IS NO FLASH IN THE PAN IT IS BACKED BY THE RHODE ISLAND MEDIA COMPANY AND MR SCHONFELD WAS THE FOUNDING PRESIDENT AND CHIEF EXECUTIVE OF CNN NOW INSTEAD OF GOOD VIDEO OF OIL SPILLS IN ALASKA HE'LL BE LOOKING FOR AN ANGLE ON BAKED ALASKA THE ARCHITECT OF THE FOOD NETWORK IS NO EPICUREAN I'M A MEATANDPOTATOES GUY SAYS MR SCHONFELD WHO AT 215 POUNDS SAYS HE IS SATISFIED WITH HIS WAISTLINE HE ENVISIONS LIVE CALLIN SHOWS SOMETHING WITH FOOD AND CELEBRITIES HE SAYS AS WELL AS PROGRAMS ON FOOD AND HEALTH AND A WEEKLY HALFHOUR SHOW HOW TO FEED YOUR FAMILY ON 75 A WEEK TVFN HOPING TO AIR IN TIME TO GIVE TURKEY TIPS TO HOLIDAY CHEFS IS STAKING ITS CLAIM EARLY IN CABLE'S COMING LAND RUSH WITH PLANS TO DELIVER HUNDREDS OF CABLE CHANNELS TO HOUSEHOLDS IN A FEW YEARS CABLE OPERATORS HAVE BEGUN TO WONDER WHAT IN THE WORLD WILL FILL UP ALL THAT SPACE THE CARTOON CHANNEL SCIFI CHANNEL AND ROMANCE CLASSICS STARTED LAST YEAR UNITED NATIONS TELEVISION IS GEARING UP IN NEW YORK AND STILL TO COME ARE THE CRIME CHANNEL MILITARY CHANNEL HOWTO CHANNEL AND RECOVERYNET A CHANNEL AIMED IN PART AT RECOVERING ADDICTS WHEN THE IDEA FOR THE FOOD NETWORK GELLED ITS CREATORS HAD TO AVOID NAMES ALREADY CLAIMED INCLUDING THE FOOD CHANNEL AND EAT TV THOUGH NOT YET IN USE BY OPERATING CABLE NETWORKS THOSE NAMES MAY PORTEND COMPETITION BUT ANDREW THACHER DIRECTOR OF BUSINESS DEVELOPMENT FOR THE PROVIDENCE JOURNAL SAYS IN EFFECT THAT TVFN WILL EAT THEIR LUNCH THERE IS NO COMPETITION HE SAYS IN ITS FIRST YEAR THE TELEVISION FOOD NETWORK WILL HAVE A TOUGH TIME BUYING ENOUGH CULINARY FARE TO FILL ITS ROUNDTHECLOCK SCHEDULE SO IT PLANS TO RUN THE SAME EIGHT HOURS OF PROGRAMMING THREE TIMES A DAY HUNGRY VIEWERS IT SEEMS WILL HAVE TO MAKE DO WITH LEFTOVERS 9301150041 930115 BUSINESS BRIEF STATE STREET BOSTON CORP BANK HOLDING CONCERN'S NET ROSE 55 FOR 4TH QUARTER STATE STREET BOSTON CORP'S FOURTHQUARTER NET INCOME ROSE 55 TO 436 MILLION OR 57 CENTS A SHARE FROM 282 MILLION OR 37 CENTS A SHARE A YEAR AGO THE BANK HOLDING COMPANY ATTRIBUTED THE GAIN TO FEE REVENUE GROWTH AND A LOWER PROVISION FOR LOAN LOSSES HIGHER OPERATING EXPENSES HOWEVER PARTLY OFFSET THE INCREASE STATE STREET SAID FEE REVENUE IN THE FOURTH QUARTER WAS 1838 MILLION UP 23 FROM 1494 MILLION IN THE 1991 FOURTH QUARTER STATE STREET SAID FOR THE YEAR NET JUMPED 15 TO 1604 MILLION OR 210 A SHARE FROM 1393 MILLION OR 186 A SHARE IN 1991 AS OF DEC 31 TOTAL ASSETS UNDER CUSTODY WERE 13 TRILLION ASSETS UNDER MANAGEMENT WERE 111 BILLION THE BANK'S TOTAL ASSETS WERE 1649 BILLION 9301150040 930115 BUSINESS BRIEF RUBBERMAID INC COMPANY RESTATES EARNINGS TO REFLECT ITS RETIREE COSTS RUBBERMAID INC SAID IT RESTATED ITS FIRSTQUARTER 1992 EARNINGS TO INCLUDE AN AFTERTAX CHARGE OF 201 MILLION FOR ADOPTING FINANCIAL ACCOUNTING STANDARD NO 106 THE RULE REQUIRES COMPANIES TO SET ASIDE MONEY NOW TO FUND BENEFITS FOR FUTURE RETIREES SEPARATELY RUBBERMAID SAID DONALD L AWBREY POSTPONED HIS RETIREMENT TO CONTINUE WORKING ON SPECIAL PROJECTS FOR CHAIRMAN WOLFGANG SCHMITT MR AWBREY 60 YEARS OLD HAD QUIT HIS POST AS PRESIDENT OF THE COMPANY'S RUBBERMAID OFFICE PRODUCTS UNIT LAST MONTH IN ANTICIPATION OF RETIRING IN APRIL FOR THE PAST MONTH HE HAS BEEN WORKING ON SPECIAL PROJECTS FOR MR SCHMITT BUT WITHOUT A TITLE MR SCHMITT WHO ASSUMED THE TOP POST LAST NOVEMBER FOLLOWING THE DEPARTURE OF WALTER F WILLIAMS HAS YET TO NAME A NO 2 EXECUTIVE 9301150039 930115 BUSINESS BRIEF UAL CORP NEW ACCOUNTING STANDARDS WILL REDUCE 1992 EARNINGS UAL CORP CHICAGO SAID NEW ACCOUNTING STANDARDS WILL REDUCE 1992 EARNINGS BY ABOUT 590 MILLION THE UNITED AIRLINES PARENT SAID A RULE RELATING TO RETIREE BENEFITS WILL REQUIRE A ONETIME CHARGE OF 580 MILLION TO COVER PREVIOUS YEARS THE COMPANY WILL ALSO RESTATE ITS FIRST THREE QUARTERS' RESULTS TO REFLECT THE ACCOUNTING CHANGE RAISING 1992 AFTERTAX EXPENSES BY ABOUT 50 MILLION PARTLY OFFSETTING THE 630 MILLION REDUCTION IN AFTERTAX RESULTS WILL BE A ONETIME BENEFIT OF ABOUT 40 MILLION FROM THE AIRLINE HOLDING COMPANY'S ADOPTION OF AN ACCOUNTING STANDARD RELATING TO INCOMETAX ACCOUNTING IN THE FIRST NINE MONTHS OF 1992 UAL HAD A LOSS OF 1659 MILLION OR 690 A SHARE ON REVENUE OF 969 BILLION 9301150038 930115 COMMODITIES MIDEAST TENSION RUMORS OF OPEC OUTPUT CUTS HELP TO SUSTAIN REBOUND IN WORLD OIL MARKETS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL UNCERTAINTIES OVER IRAQ AND THE POSSIBILITY OF SOME OUTPUT CUTS BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HELPED TO PROLONG A PRICE REBOUND IN WORLD OIL MARKETS IN FUTURES TRADING CRUDE OIL PRICES WERE 13 CENTS TO 20 CENTS A BARREL HIGHER IN LONDON ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE FOR FEBRUARY DELIVERY ROSE 20 CENTS A BARREL TO SETTLE AT 1870 IN THE US OIL FIELDS REFINERS RAISED POSTINGS FOR WEST TEXAS INTERMEDIATE THE BENCHMARK CRUDE BY 25 CENTS A BARREL SOME OF THE RISE IN PRICES MAY HAVE BEEN TECHNICALLY DRIVEN ONE TRADER SAID CRUDE FUTURES ARE DUE FOR A MAJOR TECHNICAL BOOST IF THE MARCH CONTRACT BREAKS THROUGH 19 A BARREL IT SETTLED YESTERDAY AT 1884 A BARREL UP 15 CENTS FOR THE DAY STILL ONE FUNDAMENTAL FACTOR HELPING TO OVERCOME THE BEARISHNESS IN OIL MARKETS WAS THE GUESSING OVER WHAT RESPONSE IF ANY IRAQ'S SADDAM HUSSEIN WOULD HAVE TO WEDNESDAY'S BRIEF ALLIED BOMBING RAID ON MISSILE SITES IN SOUTHERN IRAQ BUT A MORE IMPORTANT REASON FOR YESTERDAY'S PRICE GAINS APPEARED TO BE SPECULATION OVER A LIKELY CUT IN OPEC'S RUNAWAY PRODUCTION WHICH AVERAGED 253 MILLION BARRELS A DAY LAST MONTH THE HIGHEST SINCE 1980 EVEN IF THEY ARE MADE SUCH REDUCTIONS ARE NOT LIKELY TO BEGIN UNTIL THE SECOND QUARTER OR AT THE EARLIEST MARCH 1 BUT RUMORS SWEEPING TRADING FLOORS HAD THE TOTAL CUTS AS HIGH AS 350000 TO ONE MILLION BARRELS A DAY SAUDI ARABIA WHICH PRODUCES 85 MILLION BARRELS A DAY COULD ACCOUNT FOR 300000 TO 400000 BARRELS OF THE DAILY CUTS IF OTHER OPEC MEMBERS ALSO REDUCED THEIR OUTPUT PROPORTIONATELY ALLEGEDLY THE SAUDIS ARE CONCERNED ABOUT THESE PRICES SAID NAUMAN BARAKAT A MERRILL LYNCH ENERGY FUTURES VICE PRESIDENT IN NEW YORK IF THAT'S TRUE HE ADDED THAT WOULD TIGHTEN THE SUPPLY SITUATION AND SOAK UP THE GLUT ALTHOUGH HE IS LIKELY TO HAVE A MORE MODEST CUTBACK GOAL IN MIND ALIRIO PARRA OPEC'S PRESIDENT AND VENEZUELA'S OIL MINISTER HAS BEGUN CAMPAIGNING FOR A NEW COOPERATIVE MOVE BY THE OIL EXPORTERS TO BRING DOWN SUPPLIES TO BALANCE WORLD OIL MARKETS HE ANNOUNCED PLANS TO VISIT OPEC'S MIDDLE EAST MEMBERS IN SEARCH OF A CONSENSUS IN CARACAS YESTERDAY MR PARRA TOLD REPORTERS THAT THE GOAL OF THE TOUR WILL BE TO REACH AN AGREEMENT ON PRODUCTION LEVELS BEFORE THE NEXT OPEC MEETING WHICH BEGINS FEB 13 IN VIENNA BUT HE SUGGESTED ANY PRODUCTION CUTS BY OPEC MAY BE SMALL IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES MARKETS REMAINED UNAFFECTED BY THE TENSIONS IN THE MIDDLE EAST ON THE NEW YORK COMMODITY EXCHANGE GOLD FUTURES PRICES FOR FEBRUARY DELIVERY CLOSED DOWN 30 CENTS AT 32730 AN OUNCE GOLD CONTINUES TO BE IGNORED SAID JAMES STEEL A METALS ANALYST WITH REFCO IN NEW YORK THE MARKETS ARE INSENSTIVE TO THESE POLITICAL EVENTS BULLS ARE VERY DISAPPOINTED THAT THE MARKETS HAVEN'T RALLIED BUT THERE'S NOTHING ATTRACTING INVESTORS TO PRECIOUS METALS SILVER FOR MARCH DELIVERY CLOSED 22 CENTS LOWER AT 3675 ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE APRIL PLATINUM CLOSED 50 CENTS LOWER AT 35540 AN OUNCE MR STEEL SAID THAT PLATINUM FUTURES PRICES HAVE BEEN DEPRESSED RECENTLY BY REPORTS OF SLOWDOWNS IN EUROPEAN AND US AUTOMOBILE PRODUCTION PLATINUM IS AN IMPORTANT COMPONENT OF CATALYTIC CONVERTORS USED IN VEHICLES TO REDUCE POLLUTION ORANGE JUICE PRICES OF ORANGE JUICE FUTURES TRADING NEAR 12YEAR LOWS CLOSED HIGHER AMID SHORT COVERING BY COMMODITY FUNDS IN A VERY THIN MARKET ANALYSTS SAID THE ACTIVELY TRADED MARCH CONTRACT JUMPED 170 CENTS TO 8235 CENTS A POUND THERE WAS NO FRESH BUYING JUST SHORT COVERING IN A VERY OVERSOLD MARKET SAID SCOTT MEYERS SENIOR FUTURES STRATEGIST WITH REDELSILGO GROUP SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR BETS THAT THE PRICE WILL FALL BUY BACK CONTRACTS TO CLOSE OUT THEIR POSITIONS ANALYSTS AND TRADERS NOTED HOWEVER THAT THE TONE REMAINS NEGATIVE FOR THE MARKET AS A RESULT OF A BOUNTIFUL CROP AND FORECASTS FOR CONTINUED MILD WEATHER THERE CONTINUES TO BE A BEAR MARKET AND MANY INVESTORS HAVE BEEN SHORT ORANGE JUICE FUTURES CONTRACTS SAID BERNARD SAVAIKO A SENIOR ANALYST WITH PAINEWEBBER THE FLORIDA ORANGE CROP PROJECTED AT ABOUT 188 MILLION BOXES FOR THE CURRENT SEASON IS EXPECTED TO BE THE SECOND LARGEST IN FLORIDA'S HISTORY ACCORDING TO RECENT ESTIMATES BY THE US DEPARTMENT OF AGRICULTURE THE RECORD OF ABOUT 206 MILLION BOXES WAS SET IN THE 197980 SEASON MR MEYERS SAID SOME COMMODITY FUNDS WERE WARY OF BETTING TOO STRONGLY THAT PRICES WILL CONTINUE TO FALL PARTICULARLY IN THE MIDDLE OF THE FREEZE SEASON HE SAID THAT COMPARED WITH LAST YEAR'S HIGHS OF ABOUT 174 A POUND FOR ORANGE JUICE FUTURES IT LOOKS CHEAP AND THERE SHOULD BE SOME UPSIDE POTENTIAL FOR PRICES GRAINS AND SOYBEANS WHEAT FUTURES PRICES RALLIED TO THE HIGHEST LEVEL IN SEVEN MONTHS ON TIGHT STOCKS AND CONTINUED EXPORT DEMAND FOR US WHEAT COSTA RICA SRI LANKA AND JORDAN WERE ALL BUYERS OF WHEAT SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO MOREOVER SUPPLIES AVAILABLE FOR IMMEDIATE EXPORT FROM THE GULF OF MEXICO ARE EXTREMELY LIMITED THE PRICE OF WHEAT FOR MARCH DELIVERY ROSE FOUR CENTS TO 37925 A BUSHEL MEANWHILE COMMODITY FUNDS MANAGED POOLS OF INVESTOR MONEY WERE AGGRESSIVE SELLERS OF SOYBEAN FUTURES CONTRACTS HELPING TO DRIVE CONTRACT PRICES LOWER THE MARCH SOYBEAN CONTRACT WAS DOWN SIX CENTS TO 578 A BUSHEL 9301150037 930115 BUSINESS BRIEF IN FOCUS SYSTEMS INC OREGON CONCERN CUTS PRICES ON EIGHT LCD PRODUCTS IN A BID TO BROADEN ITS MARKETS IN FOCUS SYSTEMS INC SLASHED PRICES 6 TO 25 FOR EIGHT OF ITS LIQUID CRYSTAL DISPLAY OR LCD PRODUCTS THE 25 BILLION WORLD MARKET FOR LCD PRODUCTS IS CURRENTLY DOMINATED BY THE JAPANESE BUT MOTOROLA INC SCHAUMBURG ILL LAST YEAR HEIGHTENED THE US PRESENCE IN LCD BY JOINING FORCES WITH IN FOCUS TO LAUNCH MOTIF INC A JOINT VENTURE COMPANY AIMING TO ENHANCE THE PRICEPERFORMANCE OF AMERICAN LCD TECHNOLOGY IN OVERTHECOUNTER TRADING LATE YESTERDAY IN FOCUS SHARES WERE QUOTED AT 1525 UP 1 9301150036 930115 YOUR MONEY MATTERS WEEKEND REPORT SOME MUTUAL FUNDS FOR PENNYPINCHING INVESTORS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL SUPPOSE YOU'RE A SMALL INVESTOR A REALLY SMALL INVESTOR YOU WANT TO GET STARTED ON MUTUAL FUND INVESTING BUT YOU'VE GOT ONLY A FEW HUNDRED DOLLARS TO SQUIRREL AWAY AND THESE DAYS MANY MAJOR FUND GROUPS DEMAND INVESTMENT MINIMUMS OF 2500 AND MORE A HOPELESS SITUATION NOT AT ALL FOR CASHSTRAPPED INVESTORS LOOKING TO MAKE THEIR FIRST VENTURE INTO MUTUAL FUNDS IT TURNS OUT THAT THERE ARE PLENTY OF GOOD FUNDS THAT CAN BE BOUGHT FOR 500 OR LESS FOR INSTANCE IT TAKES JUST 500 TO GET INTO NICHOLAS FUND OR CENTURY SHARES TRUST WHICH RANK AMONG THE FUND INDUSTRY'S TOP LONGTERM PERFORMERS MONETTA FUND A HIGHLY REGARDED SMALLSTOCK FUND ROLLS OUT THE WELCOME MAT FOR THOSE WITH ONLY 100 TO INVEST FOR 250 YOU CAN BUY INTO PAX WORLD FUND WHICH PRACTICES SOCIALLY CONSCIOUS INVESTING ALL FOUR FUNDS CAN BE BOUGHT WITHOUT PAYING A SALES COMMISSION OR LOAD YOU CAN FIND SOME AWFULLY GOOD FUNDS THAT HAVE LOW MINIMUMS SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER BUT FINDING THESE LOWMINIMUM FUNDS HAS BECOME TRICKIER ESPECIALLY IF YOU WANT TO AVOID PAYING A LOAD WHILE LOTS OF BROKERSOLD FUNDS WILL STILL ACCEPT CUSTOMERS WITH 250 OR 500 TO INVEST MANY NOLOAD FUNDS HAVE RAISED THEIR INVESTMENT MINIMUMS DURING THE PAST FEW YEARS IN AN EFFORT TO SAVE COSTS EVEN WITH THESE FUNDS HOWEVER THERE ARE OFTEN WAYS TO GET AROUND THE PUBLISHED INVESTMENT MINIMUM MANY NOLOAD FUND GROUPS FOR INSTANCE WILL WAIVE THEIR MINIMUM IF YOU SIGN UP FOR AN AUTOMATIC INVESTMENT PLAN WHEREBY A FIXED AMOUNT IS DEDUCTED FROM YOUR BANK ACCOUNT OR PAYCHECK EACH MONTH AND PUT DIRECTLY INTO A MUTUAL FUND DOUGLAS MOLLIN A NEW YORK FINANCIAL PLANNER OFTEN STEERS CLIENTS WITH LITTLE CASH TO TWENTIETH CENTURY MUTUAL FUNDS WHICH WILL WAIVE ITS MINIMUM IF YOU AGREE TO INVEST 25 A MONTH AMONG THE FIRM'S STOCK FUNDS MR MOLLIN FAVORS TWENTIETH CENTURY HERITAGE INVESTORS WHICH BUYS MEDIUMSIZED STOCKS I THINK THE MIDCAP AND SMALLCAP FUNDS HAVE MORE POTENTIAL THAN LARGERCAP STOCKS OVER THE NEXT TWO TO FIVE YEARS HE SAYS AARP INVESTMENT PROGRAM FOUNDERS FUNDS INVESCO FUNDS GROUP JANUS GROUP NEUBERGER & BERMAN MANAGEMENT T ROWE PRICE ASSOCIATES AND STRONG FUNDS ALSO WILL LET YOU INTO THEIR FUNDS FOR NO MONEY DOWN IF YOU AGREE TO SOCK AWAY AT LEAST 50 EVERY MONTH SIMILARLY BABSON GROUP DREYFUS CORP AND GABELLI FUNDS WILL WAIVE THEIR INVESTMENT MINIMUMS IF YOU SIGN UP FOR A 100 AUTOMATIC MONTHLY INVESTMENT PLAN THE DREYFUS PROGRAM IS LIMITED TO THREE STOCK FUNDS USAA INVESTMENT MANAGEMENT WILL LET YOU INTO THREE OF ITS FUNDS FOR A 100 INITIAL INVESTMENT PROVIDING YOU AGREE TO INVEST 50 A MONTH THEREAFTER FUND COMPANIES USUALLY WANT INVESTORS TO STICK WITH THEIR AUTOMATIC MONTHLY INVESTMENTS AT LEAST UNTIL THE ACCOUNT SIZE GROWS TO MEET THE REGULAR INVESTMENT MINIMUM AN AUTOMATIC INVESTMENT PLAN ALLOWS YOU TO USE A STOCK MARKET BUYING TECHNIQUE KNOWN AS DOLLAR COST AVERAGING WITH SUCH AVERAGING YOU INVEST A FIXED AMOUNT ON A REGULAR BASIS WHEN SHARE PRICES ARE HIGH YOUR MONTHLY INVESTMENT BUYS FEWER SHARES WHEN PRICES ARE LOW YOU BUY MORE AS SHARE PRICES RISE OVER TIME YOU SHOULD END UP OWNING SHARES THAT ARE WORTH MORE THAN THE PRICE YOU PAID INVESTORS WITH THIN WALLETS WHO DON'T WANT TO INVEST A FIXED AMOUNT EVERY MONTH OFTEN CAN GET AROUND A FUND'S REGULAR INVESTMENT MINIMUM BY OPENING AN INDIVIDUAL RETIREMENT ACCOUNT YOU CAN OPEN AN IRA ACCOUNT WITH JUST 500 AT BOSTON'S FIDELITY INVESTMENTS AND SCUDDER STEVENS & CLARK DENVER'S FOUNDERS AND JANUS BALTIMORE'S T ROWE PRICE STEINROE MUTUAL FUNDS IN CHICAGO AND VANGUARD GROUP IN VALLEY FORGE PA THE IRA MINIMUM IS 250 AT BABSON IN KANSAS CITY MO INVESCO IN DENVER NEUBERGER & BERMAN IN NEW YORK STRONG IN MILWAUKEE AND THE AARP FUNDS MANAGED BY SCUDDER WHICH ARE OPEN TO INVESTORS OF ANY AGE THERE'S NO MINIMUM AT ALL TO OPEN AN IRA AT TWENTIETH CENTURY IN KANSAS CITY MO AND YOU NEED JUST 100 TO START A RETIREMENT ACCOUNT AT BENHAM GROUP IN MOUNTAIN VIEW CALIF MOST MUTUAL FUND MANAGEMENT COMPANIES HAVE TOLLFREE TELEPHONE NUMBERS WHICH CAN BE FOUND BY CALLING TOLLFREE DIRECTORY INFORMATION AT 8005551212 INVESTORS SOMETIMES GET A BREAK ON FUND MINIMUMS BY GOING THROUGH A DISCOUNT BROKERAGE FIRM SUCH AS SAN FRANCISCO'S CHARLES SCHWAB & CO WHICH SELLS OTHER COMPANIES' MUTUAL FUNDS THROUGH ITS MUTUAL FUND MARKETPLACE IF I WERE GOING TO PICK ONE FUND FOR A PERSON STARTING OUT I WOULD LOOK SERIOUSLY AT FINANCIAL INDUSTRIAL INCOME FUND OR NEUBERGER & BERMAN GUARDIAN SAYS KENNETH KLEGON A LANSING MICH INVESTMENT ADVISER THEY WOULD MAKE GOOD SENSE FOR SOMEONE WHO HAS A ONEFUND PORTFOLIO KIDS TOO CAN OFTEN SNEAK INTO FUNDS FOR LESS THAN THE REGULAR INVESTMENT MINIMUM PROVIDING THE FUND IS BOUGHT IN A CUSTODIAL ACCOUNT SET UP BY THE FUND GROUP UNDER THE UNIFORM GIFTS TO MINORS ACT OR UNIFORM TRANSFERS TO MINORS ACT WITH SUCH ACCOUNTS THE FIRST 600 OF GAINS EACH YEAR ARE TAXFREE AND THE NEXT 600 ARE TAXED AT THE CHILD'S 15 TAX RATE PROVIDING THE CHILD IS UNDER 14 FOR CHILDREN 14 OR OLDER ALL INCOME IS TAXED AT THE CHILD'S RATE WHICH WILL NORMALLY BE LOWER THAN THE PARENTS' RATE FOUNDERS AND VANGUARD WILL LET YOU OPEN A CUSTODIAL ACCOUNT WITH 500 WHILE BABSON NEUBERGER & BERMAN STRONG AND TWENTIETH CENTURY DEMAND JUST 250 TO SET UP A KIDDIE ACCOUNT FOR PARENTS WHOSE KIDS ARE AT LEAST 10 YEARS FROM COLLEGE ANNAPOLIS MD FINANCIAL PLANNER STEVEN AMES RECOMMENDS US STOCK FUNDS SUCH AS FOUNDERS SPECIAL FUND NEUBERGER & BERMAN GUARDIAN TWENTIETH CENTURY ULTRA INVESTORS AND VANGUARD WORLDUS GROWTH PORTFOLIO THESE ARE ALL GOOD LONGTERM GROWTH VEHICLES SAYS MR AMES SHELLEY FREEMAN SHEARSON LEHMAN BROTHERS' DIRECTOR OF FINANCIAL PLANNING NOTES THAT MONEY INVESTED IN CUSTODIAL ACCOUNTS BECOMES AN IRREVOCABLE GIFT TO THE CHILD AS A RESULT PARENTS SHOULDN'T USE THESE ACCOUNTS IF THEY ARE CONCERNED THAT THE CHILD MAY NOT PUT THE MONEY TO GOOD USE SHE SAYS OF COURSE IT'S HARD TO DETERMINE THAT WHEN THE KID IS SIX YEARS OLD LISTED BELOW ARE THE SIX LARGEST NOLOAD AND LOWLOAD MUTUAL FUND GROUPS THAT CATER TO SMALL INVESTORS PLUS A LOOK AT HOW YOU CAN GET INTO THEIR FUNDS FOR 500 OR LESS DREYFUS CORP MINIMUM WAIVED FOR DREYFUS FUND DREYFUS NEW LEADERS AND DREYFUS THIRD CENTURY PROVIDING YOU AGREE TO INVEST 100 A MONTH AUTOMATICALLY FIDELITY INVESTMENTS IRA MINIMUM IS 500 YOU CAN OPEN A MONEY MARKET ACCOUNT FOR A CHILD WITH NO MONEY DOWN PROVIDING YOU INVEST 100 A MONTH AUTOMATICALLY ONCE THE MONEY MARKET FUND TOTAL HITS 1000 IT CAN BE SWITCHED INTO THREE FIDELITY STOCK FUNDS T ROWE PRICE ASSOCIATES MINIMUM IS WAIVED IF YOU AGREE TO 50 AUTOMATIC MONTHLY INVESTMENT MINIMUM FOR IRAS IS 500 SCUDDER STEVENS & CLARK IRA MINIMUM IS 500 A CHILD'S ACCOUNT CAN ALSO BE OPENED FOR 500 PROVIDING YOU SIGN UP FOR A 50 AUTOMATIC MONTHLY INVESTMENT TWENTIETH CENTURY AN ACCOUNT CAN BE OPENED WITH NO MONEY DOWN SO LONG AS YOU AGREE TO A 25 AUTOMATIC MONTHLY INVESTMENT A CHILD'S ACCOUNT CAN BE OPENED FOR 250 AND THERE'S NO MINIMUM FOR IRAS VANGUARD GROUP VANGUARD STAR FUND WHICH BUYS OTHER VANGUARD FUNDS HAS 500 MINIMUM MINIMUM FOR IRAS AND CHILDREN'S ACCOUNTS IS ALSO 500 9301150035 930115 BUSINESS BRIEF SPAR AEROSPACE LTD CANADIAN CONCERN TO SELL SHARES FOR ABOUT 40 MILLION SPAR AEROSPACE LTD SAID IT AGREED TO SELL THREE MILLION SUBORDINATE VOTING SHARES TO AN UNDERWRITING GROUP HEADED BY BURNS FRY LTD FOR TOTAL PROCEEDS OF 512 MILLION CANADIAN DOLLARS US40 MILLION THE SHARES WILL BE RESOLD TO THE PUBLIC SPAR SAID THE OFFERING WHICH IS SUBJECT TO REGULATORY APPROVALS IS EXPECTED TO CLOSE FEB 10 PROCEEDS WILL BE USED TO REPAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES AT LAST REPORT SPAR HAD 116 MILLION SHARES OUTSTANDING SPAR ALSO SAID IT EXPECTS TO RECORD AN C8 MILLION PROVISION AGAINST ITS 1992 EARNINGS FOR NONRECURRING COSTS RELATED TO THE DISCONTINUANCE AND POSSIBLE SALE OF ITS GEARS AND TRANSMISSION DIVISION SPAR BASED IN MISSISSAUGA ONTARIO IS A MANUFACTURER OF SATELLITES AND OTHER RELATED EQUIPMENT 9301150034 930115 WHAT'S NEWS BUSINESS AND FINANCE IBM WAS STRIPPED OF ITS PRIZED TRIPLEA CREDIT RATING BY S&P IN AN UNUSUALLY SEVERE ACTION THE RATING AGENCY SLASHED THE EMBATTLED COMPUTER GIANT'S DEBT RATING THREE NOTCHES TO DOUBLEAMINUS CITING THE COMPANY'S SIGNIFICANTLY LOWERTHANANTICIPATED RESULTS ESPECIALLY IN ITS CORE MAINFRAME COMPUTER BUSINESS DIGITAL EQUIPMENT REPORTED A SMALLERTHANEXPECTED LOSS ON A 6 REVENUE GAIN IN ITS SECOND QUARTER THE RESULTS SUGGESTED TO SOME THAT THE COMPUTER MAKER COULD BE STAGING A TURNAROUND THE STOCK SURGED 21 DIGITAL'S RESULTS FURTHER BOOSTED TECHNOLOGY ISSUES LIFTING OTC STOCKS TO A RECORD HOWEVER THE DOW JONES INDUSTRIALS ROSE ONLY MODESTLY GAINING 432 TO 326788 BOND PRICES MOVED UP AND THE DOLLAR WAS LITTLE CHANGED HEFTY DECEMBER RETAIL SALES LIFTED THE YEAR'S TOTAL TO 51 ABOVE 1991 BUT ANALYSTS DON'T EXPECT THE RECENT PACE TO CONTINUE WHOLESALE PRICES CLIMBED ONLY 02 LAST MONTH A SIGNAL THAT INFLATION REMAINS WELL IN CHECK JP MORGAN BANK OF NEW YORK AND SEVERAL OTHER MAJOR BANKS POSTED STRONG FOURTHQUARTER EARNINGS FUELED BY ROBUST INTEREST RATE MARGINS AND LOWER CHARGES FOR PROBLEM LOANS MICROSOFT POSTED A 35 EARNINGS GAIN ON A 38 JUMP IN REVENUE IN ITS SECOND QUARTER SEPARATELY THE SOFTWARE COMPANY'S NEW PC DATABASE IS SELLING WELL BUT IS FACING SHARP CRITICISM FOR BUGS AND MISSING FEATURES SEVERAL BIG OIL AND GAS COMPANIES IN THE US ARE URGING CLINTON TO ADOPT AN OILIMPORT FEE RATHER THAN INCREASE GASOLINE TAXES TO REDUCE THE DEFICIT THE FED'S PRINCIPAL MONEYSUPPLY MEASURE M2 GREW ONLY 21 LAST YEAR SHY OF THE GOAL OF 25 TO 65 DESPITE THAT THE BANK IS MOVING TOWARD LOWERING THE RANGE FOR 1993 APPLE COMPUTER POSTED A 28 DROP IN ITS FIRSTQUARTER NET DESPITE RECORD REVENUE COMPETITIVE PRICE CUTS COUPLED WITH THE COSTS OF INTRODUCING ITS NEW LAPTOP PRODUCTS HURT MARGINS THE DEBT OF UNITED AIRLINES AMERICAN AIRLINES AND DELTA AIR LINES ALONG WITH THAT OF THE CARRIERS' PARENTS WAS PLACED UNDER REVIEW FOR ANOTHER POSSIBLE DOWNGRADE BY S&P FEDERAL EXPRESS LOST ITS BID TO KEEP US LABOR GROUPS OUT OF ITS RANKS AS ITS PILOTS VOTED TO UNIONIZE HOWEVER THE COMPANY CONTESTED THE RESULT BETHLEHEM STEEL IS NEARING DECISIONS TO SPLIT ITS TWO BIG PLANTS INTO SEPARATE UNITS AND TO INVEST IN AN EFFORT TO SAVE ITS STRUCTURALPRODUCTS UNIT PHILIP MORRIS'S MILLER BREWING UNIT IS BUYING 20 OF CANADA'S MOLSON BREWERIES FOR 273 MILLION A BELATED EFFORT TO CATCH UP WITH RIVAL ANHEUSERBUSCH'S AGGRESSIVE EXPORT CAMPAIGN SHEARSON LEHMAN BROTHERS NAMED RONALD GALLATIN TO A TOP POST AT THE FIRM'S HOLDING COMPANY DIRECTING STRATEGY AND PRODUCT DEVELOPMENT DOW CORNING HAS REFUSED TO TURN OVER TO THE FDA AN OUTSIDE COUNSEL'S REPORT ON THE COMPANY'S BREAST IMPLANTS THE COMPANY CITES ATTORNEYCLIENT PRIVILEGE FOR ITS STANCE TIME WARNER'S HBO UNIT SIGNED A 500 MILLION PACT TO CARRY PARAMOUNT PICTURES MOVIES ON PAY TV THE DEAL WHICH INCLUDES CERTAIN FOREIGN RIGHTS HIGHLIGHTS THE GROWING IMPORTANCE OF GLOBAL ENTERTAINMENT MARKETS A HIBERNIA OILFIELD STAKE IS PLANNED BY THE CANADIAN GOVERNMENT THE MOVE TO BE ANNOUNCED TODAY AIMS TO KEEP THE VENTURE ALIVE KERRY PACKER RESIGNED AS A DIRECTOR OF AUSTRALIA'S WESTPAC BANKING ONLY DAYS AFTER HE AND AN ASSOCIATE WHO ALSO RESIGNED WERE APPOINTED RUSSIA'S PRIVATIZATION PROGRAM FOR MEDIUM AND LARGE ENTERPRISES MOVED AHEAD THE GOVERNMENT SET A DATE FOR THE FIRST SELLOFF OF 20 ENTITIES TOKYO STOCKS EASED ON CAUTION TIED TO THE JAPANESE ECONOMY THE NIKKEI INDEX LOST 231 POINTS TO 1651560 BONDS LEHMAN BROTHERS TREASURY INDEX 471358 UP 1901 COMMODITIES OIL 1870 A BARREL UP 20 CENTS DOW JONES FUTURES INDEX 12291 OFF 003 SPOT INDEX 12369 UP 007 DOLLAR 12585 YEN UP 020 16245 MARKS UP 00011 9301150033 930115 CFTC TO EXEMPT MOST SWAPS FROM ITS RULES BY SANDRA BLOCK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION IN ITS LAST DEREGULATORY MOVE UNDER THE HELM OF CHAIRMAN WENDY GRAMM VOTED UNANIMOUSLY TO EXEMPT MOST SWAPS FROM ITS REGULATIONS THE RULE MAKES CLEAR THAT SWAPS CUSTOMIZED FINANCIAL PRODUCTS THAT BANKS AND OTHER BIG INVESTORS USE FOR HEDGING ON CURRENCY AND INTEREST RATES ARE EXEMPT FROM COMMODITIES LAWS AS LONG AS THEY AREN'T TRADED ON EXCHANGES WHILE THE RULE WAS WELCOMED BY SWAP DEALERS IT WAS OPPOSED BY THE CHICAGO FUTURES EXCHANGES THE EXCHANGES HINTED THAT THEY MAY TAKE LEGAL ACTION TO BLOCK THE RULE SEPARATELY THE CFTC APPROVED A RULE AIMED AT CREATING GUIDELINES FOR HOW INNOVATIVE FINANCIAL PRODUCTS ARE REGULATED THE RULE SETS UP A MATHEMATICAL TEST FOR DETERMINING WHETHER SOCALLED HYBRID PRODUCTS ARE SECURITIES WHICH ARE REGULATED BY THE SECURITIES AND EXCHANGE COMMISSION OR FUTURES WHICH ARE REGULATED BY THE CFTC UNDER THE OLD RULES A PRODUCT THAT CONTAINED ANY ELEMENTS OF A FUTURES PRODUCT WAS FORCED TO TRADE ON A FUTURES EXCHANGE AND COMPLY WITH COMMODITIES REGULATIONS MRS GRAMM SAID CHANGING THAT REQUIREMENT FOR SOME INSTRUMENTS SHOULD ENCOURAGE DEVELOPMENT OF MORE HYBRID PRODUCTS ARGUING THAT THEY ARE AT THE CENTER OF MUCH OF THE INNOVATION IN THE FINANCIAL MARKETS SIMILARLY MRS GRAMM WHO IS EXPECTED TO LEAVE THE AGENCY BY NEXT WEEK SAID THE SWAPS EXEMPTION WILL GIVE EXCHANGES AND THE OVERTHECOUNTER MARKETS THE FREEDOM TO BE MORE CREATIVE IN MEETING THE COMPETITIVE CHALLENGES OF THE GLOBAL MARKETPLACE OFFICIALS WITH THE FUTURES EXCHANGES ARGUED HOWEVER THAT THE EXEMPTION PUTS THEM AT A COMPETITIVE DISADVANTAGE BECAUSE IT DOESN'T EXEMPT SWAPS TRADED ON AN EXCHANGE PATRICK ARBOR CHAIRMAN OF THE CHICAGO BOARD OF TRADE SAID IN A STATEMENT THAT THE RULE CREATES A COMPETITIVE BARRIER FOR EXCHANGETRADED SWAPS MR ARBOR ADDED WE ARE NOT OPPOSED TO AN EXEMPTION FOR SWAPS DEALERS THAT GIVES THEM LEGAL CERTAINTY AS LONG AS WE GET TO COMPETE WITH THEM ON THE SAME PLAYING FIELD WITH THE SAME SET OF RULES THE CBOT IN AN EFFORT TO CASH IN ON THE 4 TRILLION SWAPS MARKET ANNOUNCED EARLIER THIS WEEK THAT IT PLANS TO LIST SWAPS FOR BID AND OFFER ON A COMPUTER SCREEN AT THE EXCHANGE CFTC OFFICIALS DECLINED TO COMMENT ON THE CBOT PLAN STATING THAT THEY HADN'T YET SEEN THE PROPOSAL 9301150032 930115 BUSINESS BRIEF US BANCORP LENDING OPERATION IS SLATED TO BE SOLD TO GFC FINANCIAL US BANCORP PORTLAND ORE SAID IT AGREED TO SELL AN ASSETBASED LENDING OPERATION TO GFC FINANCIAL CORP PHOENIX FOR ABOUT 70 MILLION US BANCORP OREGON'S LARGEST BANK WITH ASSETS OF 21 BILLION SAID THE SALE REPRESENTED NO CHANGE IN STRATEGY AND THAT PROCEEDS WILL BE INVESTED IN EXISTING OPERATIONS IT HAS SAID IT PLANS TO EXPAND IN NORTHERN CALIFORNIA AND NEVADA THE ENTITY TO BE SOLD IS A DIVISION OF US BANCORP FINANCIAL INC A LOS ANGELESBASED UNIT OF US BANCORP THE BANK SAID THE OTHER BUSINESS OF THE UNIT LENDING TO FINANCIAL INSTITUTIONS WOULDN'T BE AFFECTED BY THE SALE ASSETBASED LENDING IS FUNDING COLLATERALIZED BY INVENTORY AND ACCOUNTS RECEIVABLE GFC WITH ASSETS OF 25 BILLION IS A DIVERSIFIED FINANCIAL SERVICES COMPANY THE TRANSACTION IS SUBJECT TO REGULATORY APPROVAL 9301150030 930115 BUSINESS BRIEF WELLFLEET COMMUNICATIONS INC COMPANY'S NET JUMPED 54 FOR FISCAL SECOND QUARTER WELLFLEET COMMUNICATIONS INC SAID FISCAL SECONDQUARTER NET INCOME ROSE 54 AS REVENUE MORE THAN DOUBLED IN OVERTHECOUNTER TRADING YESTERDAY THE COMPUTER NETWORKING CONCERN'S SHARES JUMPED 4 TO 4550 IN THE QUARTER ENDED DEC 31 NET ROSE TO 6 MILLION OR 19 CENTS A SHARE FROM 39 MILLION OR 12 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER INCLUDED A TAX BENEFIT OF 13 MILLION FROM TAXLOSS CARRYFORWARDS PERSHARE AMOUNTS REFLECT A 2FOR1 STOCK SPLIT IN DECEMBER 1992 REVENUE JUMPED TO 401 MILLION FROM 19 MILLION JOHN DELEA ASSISTANT TREASURER ATTRIBUTED THE RESULTS TO THE ADDITION OF A SIGNIFICANT NUMBER OF NEW CUSTOMERS DURING THE QUARTER AS WELL AS INCREASED SALES TO EXISTING CLIENTS IN THE FIRST HALF NET SURGED 64 TO 11 MILLION OR 35 CENTS A SHARE FROM 67 MILLION OR 22 CENTS A SHARE THE YEAREARLIER PERIOD INCLUDED A TAX BENEFIT OF 23 MILLION FOR TAXLOSS CARRYFORWARDS REVENUE ROSE TO 729 MILLION FROM 348 MILLION 9301150029 930115 BUSINESS BRIEFS WESTINGHOUSE ELECTRIC CORP WON A 50 MILLION CONTRACT FROM CLOSELY HELD COMPANIAS ASOCIADAS PETROLERAS SA TO BUILD OPERATE AND MAINTAIN A POWER PLANT IN ARGENTINA'S NEUGUEN PROVINCE COMMUNITY HEALTH SYSTEMS INC ACQUIRED A 56BED COMMUNITY HOSPITAL IN BARSTOW CALIF TERMS WEREN'T DISCLOSED JANSKO INC ACQUIRED THOMASVILLE INDUSTRIES INC A FURNITURE MAKER TERMS WEREN'T DISCLOSED SANDOZ PHARMACEUTICALS CORP A UNIT OF SWISS SANDOZ AG AGREED TO PROVIDE MORE THAN 75 MILLION OVER A 14YEAR PERIOD TO THE NEUROSCIENCES INSTITUTE FOR LABORATORY RESEARCH GENERAL ELECTRIC CO SAID ITS GE POWER GENERATION UNIT RECEIVED A 40 MILLION ORDER FOR GAS AND STEAM TURBINEGENERATORS FOR AN INDONESIAN POWER PLANT ESKIMO PIE CORP SIGNED A LONGTERM LICENSE AGREEMENT WITH TOOTSIE ROLL INDUSTRIES INC CHICAGO TO MARKET TOOTSIE ROLL POP FROZEN NOVELTIES 9301150028 930115 FOREIGN EXCHANGE DOLLAR IS UNFAZED BY BEARISH FIGURES ON ECONOMY EDGES TO TOP OF ITS RANGE GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16245 MARKS UP FROM 16234 MARKS LATE WEDNESDAY AND AT 12585 YEN UP FROM 12565 YEN STERLING WAS TRADING AT 15370 DOWN FROM 15495 TOKYO'S FINANCIAL MARKETS WERE CLOSED FRIDAY FOR A PUBLIC HOLIDAY I JUST DON'T THINK THE MARKET'S FOCUSING ON THE FUNDAMENTALS SAID DAVID JAQUES SENIOR CORPORATE TRADER AT BARCLAYS BANK PLC IN NEW YORK DEALERS SAID REPORTS ON US RETAIL SALES PRODUCER PRICES AND JOBLESS CLAIMS WHICH ALL CAME IN WEAKER THAN ANALYSTS HAD EXPECTED HAD LITTLE EFFECT THE DOLLAR HAS BEEN REALLY RANGE BOUND MR JAQUES SAID ALTHOUGH THE DOLLAR'S EARLIER UPWARD TREND APPEARS STALLED MARKET PARTICIPANTS SAID EFFORTS TO DRIVE IT SHARPLY LOWER HAVEN'T SUCCEEDED EITHER JAY TUCKER FOREIGNEXCHANGE MANAGER AT FIRST BOSTON CORP SAID THE MARKET REALLY HAS NO MOMENTUM ADDING NOBODY KNOWS WHAT TO DO WITH THE DOLLAR WHAT MARKET INTEREST THERE WAS CENTERED ON EUROPEAN CURRENCIES DEALERS SAID STERLING SLUMPED AGAINST THE DOLLAR AND THE MARK THEY SAID AFTER RUMORS OF AN IMMINENT ONEPOINT CUT IN BRITISH INTEREST RATES PUSHED THE POUND THROUGH TECHNICAL SUPPORT AND SET OFF A CASCADE OF STOPLOSS SELL ORDERS LATE IN NEW YORK THE POUND WAS QUOTED AT 24985 MARKS DOWN FROM 25140 MARKS WEDNESDAY MR TUCKER SAID INVESTORS WHO HAD DRIVEN UP STERLING ALONG WITH THE DOLLAR IN RECENT WEEKS NOTING IMPROVING ECONOMIC FUNDAMENTALS IN THE UK AND THE US TOOK PROFITS BY UNLOADING THEIR STERLING HOLDINGS THURSDAY AS THE POUND DROPPED BUT DEALERS SAID THE POUND REBOUNDED SMARTLY FROM ITS LOW AROUND 24850 MARKS SUGGESTING BOTH THE RATECUT RUMOR AND THE SELLOFF IT TRIGGERED WERE EXAGGERATED I CERTAINLY THINK UK INTEREST RATES ARE ON A DOWNWARD PATH RIGHT NOW BUT I DON'T THINK WE'RE GOING TO SEE A LARGE CUT SAID BARCLAYS' MR JAQUES THE BANK OF ENGLAND MOST RECENTLY SIGNALED A CUT IN BASE LENDING RATES NOV 12 TO 7 FROM 8 ALTHOUGH THE RATECUT RUMORS THURSDAY WERE MET WITH SKEPTICISM DEALERS SAID MARKET EXPECTATIONS ABOUT BRITISH ECONOMIC RECOVERY HAD OVERTAKEN THE REALITY IT'S STARTING TO SHOW SOME GOOD FIGURES BUT IT'S ALL RELATIVE SAID GARY SAKAMOTO A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK PLC IN NEW YORK IT'S STILL PRETTY BAD DEALERS SAID THE SERIES OF US ECONOMIC REPORTS THURSDAY ALSO WAS SOBERING TO HOPES OF RECOVERY THOUGH NONE OF THEM SPARKED MUCH MARKET REACTION THE RETAILSALES REPORT AT FIRST APPEARED ENCOURAGING FOR DOLLAR BULLS DEALERS SAID POINTING TO THE 12 JUMP IN DECEMBER SALES SOME ANALYSTS HAD EXPECTED A RISE OF 08 BUT THE REVISION OF NOVEMBER'S FIGURE TO A 05 DROP FROM A 04 GAIN PREVENTED EUPHORIA FROM BREAKING OUT 9301150027 930115 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU COMPILED BY RONALD G SHAFER WORLD CRISES THREATEN TO OVERWHELM THE THIN CLINTON FOREIGNPOLICY TEAM THE FIGHT WITH IRAQ EXACERBATES CONCERNS THAT THE TEAM ISN'T COMPLETED ENOUGH YET TO HANDLE THE WIDENING PROBLEMS WHEN IT TAKES OVER NEXT WEEK ISRAEL SUPPORTERS COMPLAIN CLINTON OFFICIALS HAVEN'T ACTED ON RABIN'S REQUEST FOR A FEBRUARY SUMMIT ON THE MIDEAST PEACE PROCESS A SUMMIT WITH YELTSIN ALSO HASN'T BEEN SCHEDULED PUZZLING THE RUSSIANS STATE DEPARTMENT AIDES FLOAT A PLAN FOR WARREN CHRISTOPHER TO GO TO THE MIDEAST SOON TO DEAL WITH THE PERSIAN GULF AND WITH PEACE TALKS BUT THE IDEA ISN'T ACCEPTED YET LITTLE STAFF IS IN PLACE AT THE AGENCY AND THE NATIONAL SECURITY COUNCIL WHERE MIDEAST EXPERT MARTIN INDYK WHO HAS TIES TO ISRAEL IS EXPECTED TO BE NAMED AN ADVISER CLINTON'S SUGGESTION THAT HE COULD LIVE WITH SADDAM HUSSEIN IF THE IRAQI BEHAVES MAY SEND THE WRONG SIGNAL THE DICTATOR IS LIKELY TO FOCUS MORE ON THAT MESSAGE THAN ON THE THREATS BENTSEN IS EXPECTED TO PUT HIS IMPRINT ON CLINTON'S ECONOMIC PLAN SOME OF THE INCOMING TREASURY CHIEF'S STANDS AS SENATOR SUCH AS EXPANDING INDIVIDUAL RETIREMENT ACCOUNTS ARE AT ODDS WITH CLINTON POSITIONS SENATE GOP LEADER DOLE NEEDLES BENTSEN ON CLINTON'S INTEREST IN TAXING CAPITAL GAINS AT DEATH SOMETHING SEN BENTSEN OPPOSED SOME CLINTON ADVISERS TAKE AIM AT CORPORATE LOOPHOLES THAT BENTSEN HELPED ENACT BUT WHILE BENTSEN DOESN'T TALK MUCH AT INTERNAL HUDDLES ON ECONOMIC POLICY WHEN HE DOES HE COMMANDS RESPECT ONE CLINTON AIDE SAYS CLINTON ADVISERS SAY THAT IF BENTSEN PUSHES HARD ON IRAS HE WILL GET SOME OF WHAT HE WANTS BANK OF AMERICA'S CHIEF FINANCIAL OFFICER FRANK NEWMAN IS MENTIONED FOR A TOP POST TO HELP RUN THE AGENCY ETHICS FLAPS HEAT UP AS EARLY DIVERSIONS FOR BOTH CLINTON AND CONGRESS COMMERCE SECRETARYDESIGNATE BROWN'S CORPORATE TIES AND ATTORNEY GENERALNOMINEE BAIRD'S FAILURE TO PAY SOCIAL SECURITY TAXES FOR HER HOUSEHOLD HELP DOG CLINTON GOP SEN LOTT COMPLAINS ABOUT BROWN'S VERY NARROW RECUSAL POLICY IN A LETTER HE ASKS BROWN TO EXPLAIN A REQUEST TO CONTINUE CONTACTS WITH A PENSIONFUND FIRM THAT PAID HIM 40000 IN FEES LAST YEAR ETHICS CONTROVERSIES INVOLVING LAWMAKERS SUCH AS OREGON SEN PACKWOOD AND ILLINOIS REP ROSTENKOWSKI MAY BE HARDER TO OVERCOME BECAUSE CONGRESS NEEDS A FRESH START FROM VOTERS SAYS DEMOCRATIC CONSULTANT GEOFF GARIN REFORMERS HOPE CONGRESS CAN NOW ENACT CAMPAIGNFINANCE OVERHAUL THE NATIONAL JOURNAL REPORTS THAT AIDES TO NEW ILLINOIS SEN MOSELEYBRAUN PRESSED TWO CHICAGO COMMODITY EXCHANGES TO DONATE 7500 EACH FOR HER SWEARINGIN RECEPTION BLOWN CHANCE REPUBLICANS SEEM UNLIKELY TO RECOUP FROM THE FAILURE TO PRESS CLINTON COMMERCE CHIEF BROWN HARDER ON ETHICS ISSUES SOME GOP INSIDERS ACKNOWLEDGE THAT PARTY LEADERS SUCH AS DOLE ARE SO ENMESHED IN THE WASHINGTON LOBBYING AND FUNDRAISING SCENE THAT THEY ARE UNEASY ATTACKING VULNERABLE DEMOCRATS TENSIONS GROW ON JOB CHOICES ENERGY SECRETARYDESIGNATE O'LEARY BALKS AT NAMING FORMER CARTER AIDE STUART EIZENSTAT AS HER DEPUTY SHE ALSO RESISTS A TOP JOB FOR ENVIRONMENTALIST JESSICA MATHEWS BUT NO DECISIONS HAVE BEEN MADE POWERFUL REP DINGELL OPPOSES PICKING ANYONE ANTAGONISTIC TO MIDWEST SMOKESTACK INDUSTRIES FOR THE EPA'S TOP AIRQUALITY POST WHERE IS EVERYBODY SOME BIG WASHINGTON HOTELS COMPLAIN CLINTON INAUGURAL OFFICIALS BOOKED TOO MANY ROOMS THEY GAVE BACK 400 ROOMS AT THE SHERATON 200 AT THE HILTON AND 150 AT THE SHOREHAM BUT THE SUITES ARE GONE REBEL WITH A CAUSE GEORGIA GOV MILLER CHALLENGED LEGISLATORS TO SHOW SHEER GUTS AND VOTE TO REMOVE THE CONFEDERATE BATTLE FLAG FROM THE OFFICIAL STATE FLAG DECLARING THE STARS AND BARS ADDED WHEN THE STATE RESISTED THE CIVILRIGHTS MOVEMENT IN 1956 TO BE A BLOT ON GEORGIA'S IMAGE MILLER SAID FRANKLY I DO GIVE A DAMN CONGRESSIONAL DEMOCRATS PLAN TO UNDO SUPREME COURT RULINGS THEY OPPOSE THE DOOR IS OPEN NOW THAT THE BUSH VETO ISN'T STANDING IN THE WAY SAYS DUKE UNIVERSITY LAW PROF WALTER DELLINGER DEMOCRATS WILL QUICKLY SEEK A LAW PROTECTING CLINICS FROM OPERATION RESCUE BLOCKADES AFTER THIS WEEK'S RULING THAT AN 1871 LAW CAN'T BE USED AGAINST SUCH PROTESTS THEY ALSO WILL TRY TO ROLL BACK RULINGS THAT MAKE IT EASIER FOR STATES TO RESTRICT ABORTION ANOTHER BILL WILL SEEK TO TOUGHEN FEDERAL PENALTIES FOR CRIMES MOTIVATED BY RACE OR GENDER BIAS THE GOAL IS TO COUNTER THE RULING THROWING OUT A ST PAUL MINN HATECRIME ORDINANCE A BIPARTISAN BILL WILL SEEK TO GET AROUND A 1990 RULING THAT RESTRICTS RELIGIOUS FREEDOM BY GIVING STATES GREATER LEEWAY TO REGULATE RITUAL PRACTICES CLINTON HAS EXPRESSED GENERAL SUPPORT FOR ALL OF THESE EFFORTS BUT HASN'T COMMITTED HIMSELF TO SPECIFIC DETAILS MINOR MEMOS THE ITALIANAMERICAN LEADERSHIP COUNCIL SPONSORS A PARTY NEXT WEEK FOR CLINTON'S ITALIANAMERICAN APPOINTEES BUT CAN FIND ONLY ONEANDAHALF LEON PANETTA AND LAURA TYSON WHO IS HALF ITALIAN AFTER MONTANA SEN BAUCUS HEAPS PRAISE ON BENTSEN AT HIS CONFIRMATION HEARING NEW JERSEY SEN BRADLEY REMARKS I'D LIKE TO ASSOCIATE MYSELF WITH ALL OF THE ADJECTIVES THAT SEN BAUCUS USED A BANNER ON THE OLD EXECUTIVE OFFICE BUILDING NEXT TO THE WHITE HOUSE SAYS WE WILL BE BACK 9301150026 930115 HUNGARIANS SEEKING TO FIND A NEW WAY FIND INSTEAD AMWAY MR VAGYI SELLS SOAP AND HOPE TO FLEDGLING CAPITALISTS SEEKING THAT DALLAS' LOOK BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL BUDAPEST JAMES VAGYI IS LIVING PROOF THAT A BELIEF IN PERSONAL ACHIEVEMENT PLUS TOTAL DEVOTION TO A RANGE OF CONCENTRATED HOUSEHOLD PRODUCTS CAN BEGET 10000 A MONTH AN OPEL ASTRA AND THE PROSPECT OF RETIREMENT BEFORE 40 THAT'S THE AMERICAN WAY AMWAY FOR SHORT AMWAY CORP OF ADA MICH SPREAD ITS EVERREPLICATING ROOTS INTO HUNGARY JUST OVER A YEAR AGO IT ALREADY CLAIMS 85000 RECRUITS HERE MORE PEOPLE THAN WORK FOR THE NATIONAL RAILROAD EACH RECRUIT CAN BECOME A NETWORK MARKETER NOT ONLY SELLING DANDRUFF SHAMPOO BUT DRAWING OTHERS INTO THE AMWAY NET WHO BRING IN OTHERS STILL THIS UNIQUE MARKETING CONCEPT AS THE BROCHURES SAY BUILT A PRIVATELY HELD COMPANY IN THE US THAT PUTS ITS YEARLY SALES AT 3 BILLION AND ITS GLOBAL SALES FORCE AT TWO MILLION THE UNIQUENESS LIES IN THE EYEWIDENING IDEA OF AN INCOME THAT RISES GEOMETRICALLY FOR HUNGARIANS SICK OF A CAPITALIST TRANSITION THAT'S ALL SHOCK AND NO THERAPY IT'S HARD TO UNDERSTAND THAT AMWAY'S REWARDS ARE RARELY SO BOUNTEOUS ESPECIALLY WHEN MR VAGYI LAYS ON HIS BALLYHOO IT'S A FANTASTIC POSSIBILITY HE'S SAYING IF YOU WATCH DALLAS' YOU CAN SEE HOW NEAT AND PRETTY PEOPLE LOOK YOU CAN LOOK JUST LIKE THEM IF YOU JOIN AMWAY LOOKING NEAT AND PRETTY HIMSELF IN A BURGUNDY SPORTS COAT AND A SILK TIE THE 32YEAROLD MR VAGYI STANDS SMILING BEFORE A ROOM OF SERIOUS NOTETAKING MEN AND WOMEN IN A SUBURBAN COMMUNITY CENTER HE TALKS TO A SIMILAR GROUP EVERY NIGHT SOMETIMES TWO CULTIVATING HIS OWN ROOT SYSTEM IT EXTENDS BY HIS COUNT TO 20000 PEOPLE THE AVERAGE IS TWO TO FIVE YEARS TO BUILD SUCH A SYSTEM HE TELLS HIS AUDIENCE I DID IT IN UNDER TWO THE MINIMUM INCOME FOR A PERSON LIKE THIS IN HUNGARY IS 700000 FORINTS A MONTH THAT'S ALMOST 9000 A WOMAN IN THE BACK CAN'T CONTAIN A SMALL WHOOP MR VAGYI KEEPS SMILING I HAVE SOME FRIENDS SOME DENTISTS WHO MAKE TWICE AS MUCH HE SAYS BUT THEY CAN HARDLY GO TO HAWAII FOR A HOLIDAY DOCTORS CAN'T LEAVE THEIR BUSINESS THEY COULDN'T DO THAT YOU COULD MR VAGYI FIGURES HE HAS FIVE YEARS TO GO BEFORE HE AND HIS NEW WIFE CAN REST ON THEIR ROYALTIES YEARROUND HE IS AMWAY'S IDEAL OF AN EAST EUROPEAN FREEENTERPRISE IDOL IN 1982 DUE TO BE DRAFTED HE SKIPPED OVER THE BORDER AND EVENTUALLY LANDED IN AUSTRALIA WITHOUT A CENT OR A WORD OF ENGLISH HE PICKED UP THE LANGUAGE BY DEVOURING A STACK OF SELFHELP BOOKS AND FOUND A JOB IN A BROKERAGE HOUSE I WAS INTERESTED IN THE SUBJECT OF FINANCIAL SUCCESS HE SAYS IN HIS APARTMENT BEFORE THIS NIGHT'S TALK I WAS PREPARING MYSELF TO DO SOMETHING GREAT A BULGING FILOFAX LIES OPEN ON THE GLASSTOPPED TABLE IN FRONT OF HIM HE HAS A FAX MACHINE CORDLESS PHONES AMWAY CERTIFICATES OF ACHIEVEMENT DECORATE THE WALLS VIDEOTAPES ON THE SHELVES HAVE NAMES LIKE THERE IS ALWAYS HOPE AND GREAT COMEBACKS OF ALL TIME THE CRASH OF '87 PERSUADED MR VAGYI THAT BROKERS CAN GO BROKE HE SOLD COMPUTERS FOR A WHILE THEN IN 1990 MET THE AMWAY OPPORTUNITY IN THE FORM OF A HIGHSPENDING CUSTOMER WHO BECAME HIS SPONSOR MR VAGYI LEARNED THE AMWAY DRILL LIST YOUR FRIENDS VISIT THEM SELL THEM MAGIC FOAM CARPET CLEANER THEN BECOME THEIR SPONSOR YOU DISTRIBUTE AMWAY WARES DOWN THROUGH YOUR EXPANDING NETWORK AND A PIECE OF EVERY SALE FILTERS UP INTO YOUR POCKET IT IS A GENIUS SYSTEM MR VAGYI SAYS ALL THE MORE SO FOR PEOPLE WITH LOTS OF FRIENDS AND HE HAD LOTS HERE IN MAY 1991 HE CAME HOME WITH THE FEELING I COULD BE SUCCESSFUL AS ONE OF THE FIRST AMWAY TENDRILS TO PENETRATE LIBERATED HUNGARY HE WAS RIGHT WHEN COMMUNISM WAS OVER PEOPLE WERE FREE BUT WHAT COULD THEY DO HE SAYS THE POTENTIAL WAS RELEASED WHEN AMWAY STARTED YOU HAVE A 90DAY MONEYBACK GUARANTEE ANYBODY CAN TRY IT WE PREPARED AN INFORMATION PACK A BUSINESS OF YOUR OWN' PEOPLE STAY UP ALL NIGHT READING IT THEY'RE SO EXCITED THEY CAN'T GO TO BED AMWAY LITERATURE IN THE US ISN'T QUITE SO ROUSING COURTESY OF THE FEDERAL TRADE COMMISSION WHICH CALLED AMWAY TO TASK FOR FALSE AND MISLEADING EARNINGS CLAIMS IT IS CHECKERED WITH BOXES THAT LOOK LIKE THE CANCER WARNINGS ON CIGARETTE PACKS THESE REVEAL THAT 54 OF AMWAY RECRUITS NEVER DO MUCH OF ANYTHING AND THAT THE REST EARN ON AVERAGE ONLY 65 A MONTH IN HUNGARY AMWAY DOESN'T GET INTO ALL THIS MOST PEOPLE DON'T FOLLOW OUR GUIDELINES MR VAGYI CONCEDES IN THE PRIVACY OF HIS APARTMENT THOSE WHO FOLLOW THE BEATEN PATH BECOME VERY SUCCESSFUL VERY QUICKLY OTHERS WANDER OFF IF SHE CAN HELP IT NOEMI PARRAG WON'T BE ONE OF THEM A 30YEAROLD TEACHER AND AMWAY NOVICE SHE IS AT THE NETHER TIP OF MR VAGYI'S ROOT SYSTEM IN HER SPONSOR SUSANNA NEMETH'S HOME ONE EVENING MS PARRAG HAS SET UP A DISPLAY OF AMWAY EYE BALM AND LIP BALM NIGHT CREAM AND DAY CREAM STICKING TO THE GUIDELINES FOR ONE OF HER FIRST PRESENTATIONS SHE IS GIVING A LESSON IN SKIN CARE AVOID STRESS LADIES IT DESTROYS YOUR SKIN SHE SAYS SHE STANDS AT A TABLE IN A BLACK VELVET SKIRT FOUR FRIENDS SIT STARING INTO MIRRORS NOW LADIES EXAMINE YOUR PORES THE WOMEN TRY TONERS CLEANSERS AND CLARIFIERS UNTIL MS NEMETH A MUSIC STUDENT INVITES ALL BUT ONE INTO THE NEXT ROOM FOR JUICE AND COOKIES THE WOMAN WHO REMAINS IS A HENNAHAIRED PENSIONER MS PARRAG SITS BESIDE HER BY THE BOOK SHE ASKS WHAT WOULD YOU LIKE THE CLEANSERS OR THE MOISTURIZERS THE WOMAN HESITATES THEN COUNTS OUT 50 FOR THE MOISTURIZERS MEANWHILE NEXT DOOR MS NEMETH SLIPS THE OTHERS THE IDEA OF SIGNING ON AS TENDRILS OF THE AMWAY NETWORK THEN SHE SENDS THEM ONE BY ONE INTO MS PARRAG'S PARLOR EVERYBODY BUYS SOMETHING MS NEMETH GIGGLES WE DON'T PUSH WE JUST ASK MS PARRAG LOOKS UP FROM HER ORDER FORMS AND WHISPERS I LIKE MAKING MONEY ONE GUEST HOLDS OUT COMPLETELY BUT SHE AND THE OTHERS WILL GET THE PRESCRIBED FOLLOWUP CALL IF ENTICED THEY'LL TAKE IN AN AMWAY PEP TALKLIKE THE ONE MR VAGYI IS ABOUT TO WIND UP HE HAS COVERED HIS MARKER BOARD WITH CIRCLES CONNECTED TO SMALL CIRCLES CONNECTED TO SMALLER CIRCLES HE HAS DESCRIBED HOW ANYBODY CAN BUILD AN INCOME OF 2000 A MONTH FOUR TIMES HUNGARY'S AVERAGE PAY YOU'D NEED 12 HOURS A WEEK YOU COULD HAVE THIS KIND OF BUSINESS IN THREE TO SIX MONTHS NOW HE SHOWS HIS VIDEOTAPE THE AMWAY LOGO RISING ON THE SCREEN SCENES OF SCIENTISTS IN AMWAY LABS A SHOT OF THE TAJ MAHAL WHERE STAR AMWAY PERFORMERS GET TO GO ON PACKAGE TOURS THEN COMES A FEW WORDS FROM AMWAY'S COFOUNDER RICHARD DEVOS LAY YOUR FOUNDATIONS ON YOUR DECENCY ETHICS AND CARING FOR PEOPLE ARE THE FUNDAMENTALS OF AMWAY'S BUSINESS THE TAPE ENDS MR VAGYI TURNS OFF THE TELEVISION AND PUTS AWAY HIS FELTTIPPED MARKER EVERYONE CLAPS AND GETS UP TO LEAVE AT THE REAR OF THE ROOM IS MS PARRAG STANDING WITH GEZA BALASZ A YOUNG MAN SHE INDUCED TO COME I HAVE TO THINK IT OVER HE SAYS IT WAS A BIT FAST MR VAGYI SHAKES HANDS AND CHATS THEN HE GETS INTO HIS OPEL STOPS AT THE BUDAPEST PIZZA HUT AND DRIVES NORTH THROUGH THE NIGHT CARRYING AMWAY'S VISION OF THE AMERICAN WAY TO POLAND 9301150025 930115 COOPER INDUSTRIES PLANS CHARGE HOUSTON COOPER INDUSTRIES INC SAID IT WILL TAKE A CHARGE OF 218 MILLION OR 19 CENTS A SHARE AGAINST 1992 RESULTS TO REFLECT ACCOUNTING CHANGES COOPER IS ADOPTING NEW ACCOUNTING STANDARDS INVOLVING FEDERAL INCOME TAXES AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS THE COMPANY SAID ITS 1992 QUARTERLY RESULTS WILL BE RESTATED IN 1991 THE DIVERSIFIED MANUFACTURER EARNED 3932 MILLION OR 304 A SHARE ON REVENUE OF 62 BILLION 9301150024 930115 LETTERS TO THE EDITOR DON'T LET GRANDMA NURTURE SCOFFLAWS ARTHUR P HALL III'S DEC 23 EDITORIALPAGE ARTICLE MAILORDER TAXES GHOST OF CHRISTMAS FUTURE IN WHICH HE CONCLUDES THAT TAXING THE THRIVING MAILORDER INDUSTRY IS A THOROUGHLY BAD IDEA INDICATES THAT MR HALL JUST DOESN'T GET IT THE EFFORT BY RETAILERS STATE AND LOCAL GOVERNMENTS AND LABOR UNIONS TO EQUALIZE THE RETAIL PLAYING FIELD IS NOT ABOUT TAXING THE MAILORDER INDUSTRY IT'S ABOUT REQUIRING MAILORDER SELLERS TO DO THE SAME THING THAT SELLERS WITH STOREFRONTS MUST DO COLLECT A TAX THAT THEIR CUSTOMERS ARE NOW OBLIGATED TO PAY DIRECTLY TO THE STATES IF THEY DON'T PAY IT TO THE SELLER AS PART OF THE SALE THAT DEAR GRANDMOTHER TO WHOM MR HALL REFERRED IN HIS ARTICLE IS DOING NOTHING MORE THAN HELPING HER GRANDCHILDREN BECOME TAX SCOFFLAWS BY NOT PAYING THE SALES TAX AT THE TIME OF HER CHRISTMAS PURCHASES SOME FINE EXAMPLE FOR THE NEXT GENERATION THE FACT IS THAT THE MAILORDER INDUSTRY IS GROWING AT A GREATER RATE THAN THE REST OF RETAILING ACCORDING TO THE COMMERCE DEPARTMENT AND THAT MEANS THAT MORE TAX REVENUE IS BEING LOST EACH YEAR UNLESS CONGRESS CLOSES THE LOOPHOLE BY REQUIRING CATALOG COMPANIES AND OTHERS THAT DO BUSINESS WITHOUT STOREFRONTS TO SHOULDER THE SAME TAX COLLECTION BURDEN AS THEIR MAIN STREET COUNTERPARTS THE BURDEN IS NOT THAT GREAT MAJOR COMPANIES SUCH AS EDDIE BAUER SPIEGEL AND OTHERS ALREADY COLLECT TAXES IN THE 46 STATES THAT IMPOSE SALES TAXES INEXPENSIVE COMPUTER SOFTWARE MAKES COMPUTATION EASY AND EFFICIENT IT'S TIME THAT CONSUMERS STOPPED GETTING AWAY WITH TAX EVASION BY BUYING THROUGH THE MAIL 9301150023 930115 CANADA SETS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT WILL AUCTION ON WEDNESDAY ONE BILLION CANADIAN DOLLARS US782 MILLION OF 8 NONCALLABLE BONDS MATURING JUNE 1 2023 THE FEDERAL FINANCE DEPARTMENT SAID PROCEEDS WILL BE USED TOWARD REDEMPTION OF C185 BILLION OF GOVERNMENT BONDS MATURING FEB 1 9301150022 930115 MARKETING & MEDIA ADOLPH COORS UNIT TO TEST MALT COOLER IN ADDITIONAL MARKETS GOLDEN COLO COORS BREWING CO SAID ITS ZIMA CLEARMALT A MALT COOLER HAS SOLD BETTER IN ITS INITIAL TEST MARKETS THAN THE COMPANY HAD PROJECTED COORS A UNIT OF ADOLPH COORS CO SAID IT WILL EXPAND THE TEST TO LOS ANGELES PHOENIX DALLAS MIAMI AND PHILADELPHIA IN MIDMARCH THE CLEAR COOLER WAS INTRODUCED IN SACRAMENTO CALIF SYRACUSE NY AND NASHVILLE TENN IN SEPTEMBER 1992 THE COMPANY DECLINED TO GIVE SALES FIGURES OR SAY HOW FAR ABOVE TARGET THE SALES HAD RISEN WE HAVE ESTABLISHED A REAL CUSTOMER BASE WITH LOTS OF REPEAT TRIAL SAID JOHN NEU THE ZIMA BRAND MANAGER AT COORS WHILE COORS MAINTAINS THAT IT HAS CREATED A WHOLE NEW CATEGORY OF FLAVORED MALT BEVERAGE THE PRODUCT COMPETES WITH OTHER ALCOHOLIC CLEAR COOLERS SUCH AS SEAGRAM'S SPRITZER ZIMA AND ITS ADVERTISING CREATED BY FOOTE CONE & BELDING IN SAN FRANCISCO HAS DRAWN KUDOS FROM INDUSTRY ANALYSTS BUT MANY REMAIN SKEPTICAL THAT A BEER COMPANY LIKE COORS CAN GO BEYOND THE INITIAL SPLASH AND GIVE A NEW PRODUCT THE KIND OF LEGS IT NEEDS TO COMPETE LONG TERM AGAINST SPIRITMARKETERS LIKE SEAGRAM THE PRODUCT IS A VERY VERY GOOD IDEA SAID TOM PIRKO CONSULTANT WITH BEVMARK INC LOS ANGELES IT HAS 90S CHIC BUT MY CONCERN IS I DON'T THINK COORS IS VERY GOOD AT MARKETING ANYTHING BUT BEER THEIR FOLLOWTHROUGH HASN'T BEEN STRONG ENOUGH BREWERS INCLUDING INDUSTRY GIANT ANHEUSERBUSCH COS HAVE ALL HAD TROUBLE INTRODUCING NONBEER PRODUCTS AND KEEPING THEM ON THE SHELF INCLUDING WINE COOLERS AND BOTTLED WATER BUT A SPOKESWOMAN FOR COORS ARGUED THAT ZIMA'S SUCCESS SPEAKS FOR ITSELF ONE OF THE MAIN REASONS FOR THE SUCCESS HAS BEEN THE MARKETING STRATEGY WE HAVE USED SHE SAYS 9301150021 930115 AUTO MAKERS TO BOOST OUTPUT 35 THIS WEEK FROM A YEAR EARLIER DETROIT US AUTO MAKERS PLAN TO BUILD 103176 PASSENGER CARS THIS WEEK UP 35 FROM THE 76671 CARS BUILT IN THE YEAREARLIER PERIOD SEVERAL AUTOASSEMBLY PLANTS WILL BE IDLE MONDAY IN OBSERVANCE OF THE REV MARTIN LUTHER KING JR HOLIDAY FORD MOTOR CO SAID IT PLANS OVERTIME AT ITS ASSEMBLY PLANTS IN ATLANTA CHICAGO DEARBORN MICH KANSAS CITY MO LOUISVILLE KY WIXOM MICH AND AVON LAKE OHIO THOSE PLANTS BUILD THE FORD TAURUS MERCURY SABLE MARK VIII FSERIES PICKUP TRUCK AND EXPLORER SPORTUTILITY VEHICLE GENERAL MOTORS CORP SAID OVERTIME IS SCHEDULED AT ITS TRUCKASSEMBLY PLANTS IN OSHAWA ONTARIO JANESVILLE WIS AND MORAINE OHIO TWO GM ASSEMBLY PLANTS IN OSHAWA ARE IDLE THIS WEEK AND ARE SCHEDULED TO RESUME PRODUCTION ON MONDAY THE PLANTS MANUFACTURE THE COMPANY'S CHEVROLET LUMINA AND BUICK REGAL AUTOMOBILES 9301150020 930115 AIR FORCE SAYS IT CHOSE COSTEFFECTIVE' PATH ON B2 RADAR PROBLEM WASHINGTON THE AIR FORCE SAID IT HAS DECIDED ON A RELATIVELY SIMPLE AND INEXPENSIVE METHOD TO CORRECT PROBLEMS WITH THE B2 STEALTH BOMBER'S ABILITY TO EVADE RADAR WITH THE STEPS THAT HAVE BEEN TAKEN SAID AIR FORCE SECRETARY DONALD RICE THE AIRPLANE IS ACHIEVING THE SURVIVABILITY LEVELS THAT HAVE BEEN PLANNED FOR IT PROBLEMS WITH RADAR DETECTION OF THE STEALTH BOMBER WHICH IS BUILT BY NORTHROP CORP SURFACED IN FLIGHT TESTING IN JULY 1991 IN AUGUST 1992 THE AIR FORCE SAID IT WAS CONSIDERING THREE WAYS TO ADDRESS THE PROBLEMS MR RICE SAID YESTERDAY THAT THE AIR FORCE CHOSE THE MOST COSTEFFECTIVE SOLUTION WHICH WOULD COST ON THE ORDER OF A COUPLE OF HUNDRED MILLION DOLLARS THE SOLUTION ALL HAS TO DO WITH EDGES AND SURFACES AND DOESN'T INVOLVE ANY CHANGE IN THE BASIC SHAPE OF THE AIRCRAFT HE SAID REPAIRING THE RADAREVADING ABILITY OF THE B2 IS IMPORTANT TO NORTHROP BECAUSE IN PASSING THIS YEAR'S DEFENSE BUDGET CONGRESS AGREED TO PAY 27 BILLION FOR FOUR MORE AIRCRAFT COMPLETING THE PROGRAM AT 20 PLANES BUT IT MADE PAYMENT OF TWOTHIRDS OF THE AMOUNT CONTINGENT ON FIXING THE RADAR PROBLEM ON ANOTHER MATTER MR RICE SAID HE IS COMFORTABLE WITH THE AIR FORCE'S HANDLING OF ITS FINANCIAL RELATIONSHIP WITH MCDONNELL DOUGLAS CORP SOME IN CONGRESS HAVE ACCUSED THE AIR FORCE OF TRYING TO PROP UP THE DEFENSE CONTRACTOR THE SITUATION IS BEING REVIEWED BY THE DEFENSE DEPARTMENT'S INSPECTOR GENERAL AND BY CONGRESSIONAL INVESTIGATORS THE AIR FORCE SECRETARY SAID HE HASN'T YET SEEN A REPORT THAT IS BEING COMPLETED BY THE INSPECTOR GENERAL ON THE SUBJECT BUT HE SAID I DON'T HAVE ANY BASIS TO BE UNCOMFORTABLE WITH THAT AT THIS POINT 9301150019 930115 ENTERPRISE FOR MANY FIRMS UPTURN COMES TOO LATE BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL THE ECONOMIC RECOVERY IS TOO LITTLE TOO LATE FOR MANY SMALL COMPANIES WOUNDED BY THE RECESSION THESE BUSINESSES KEEP DYING IN NEARRECORD NUMBERS JUST AS DEMAND HAS FINALLY BEGUN TO IMPROVE MORE THAN 1700 COMPANIES WENT UNDER EVERY WEEK LAST MONTH ACCORDING TO DUN & BRADSTREET CORP THAT'S ONLY 300 FEWER THAN LAST SPRING'S RECORD WEEKLY LEVELSAND NEARLY EQUAL TO THE PEAK RATE OF 1800 A WEEK IN 1991 FOR A NUMBER OF SMALL FIRMS THE RECOVERY'S TOO LATE BECAUSE THEY'RE TOO DEEP INTO NEGATIVE CASH FLOW SAYS JOSEPH DUNCAN DUN & BRADSTREET'S CHIEF ECONOMIST SMALLBUSINESS OWNERS ARE STILL SUFFERING AND WILL CONTINUE TO SUFFER AMONG THE CONSEQUENCES BIG BUSINESSES COUNTING ON THE RECOVERY TO RESCUE THEIR TROUBLED SMALLBUSINESS CUSTOMERS MAY BE IN FOR A RUDE SURPRISE ROBERT COVELL'S BUILDINGSUPPLIES CONCERN IS ONE RECENT CASUALTY GLOBECOVELL CORP GARDEN CITY PARK NY SAW CONSTRUCTION ACTIVITY IN ITS SUBURBAN MARKETS ON LONG ISLAND RISE 16 LAST YEAR THE TURNAROUND CAME AFTER THE VALUE OF NEW BUILDING HAD FALLEN 9 IN 1991 BUT RATHER THAN REJOICING MR COVELL IS COMPLETING THE LIQUIDATION OF THE COMPANY HIS FATHER FOUNDED IN THE EARLY 1940S SALES HAD PLUNGED DURING THE RECESSION FORCING GLOBECOVELL TO DEFAULT ON ITS DEBT LAY OFF MORE THAN 30 WORKERS AND PUT OFF PAYING SUPPLIERS WE JUST COULDN'T CATCH UP WITH OVERDUE BILLS MR COVELL SAYS THERE ARE A NUMBER OF REASONS THAT MANY SMALL COMPANIES ARE TOO WEAK TO BENEFIT FROM THE ECONOMY'S REVIVAL FOR ONE THING ECONOMISTS SAY THE RECOVERY SO FAR IS AMONG THE WEAKEST EVER THE RECESSION OFFICIALLY ENDED IN MARCH 1991 ACCORDING TO THE NATIONAL BUREAU OF ECONOMIC RESEARCH A PRIVATE CAMBRIDGE MASS RESEARCH GROUP YET MORE THAN A YEAR LATER IN SUMMER 1992 NEARLY ONE IN THREE SMALLBUSINESS OWNERS WAS STILL REPORTING THAT THE ECONOMIC SLUMP WAS THE BIGGEST THREAT TO THE BUSINESS'S SURVIVAL CONCLUDED A SURVEY OF 6000 COMPANIES BY NATIONAL SMALL BUSINESS UNITED AND ARTHUR ANDERSEN'S ENTERPRISE GROUP AND EVEN AS NUMEROUS SMALL ENTERPRISES EXPERIENCE A REBOUND IN DEMAND FOR THEIR PRODUCTS OR SERVICES IT TAKES TIME TO COMPLETE SALES AND COLLECT THE BILLS THE DELAY BETWEEN WHEN THE ECONOMIC INDICATORS SIGNIFICANTLY CHANGE AND BUSINESSES FEEL WHAT THEY'RE INDICATING CAN BE SIX TO NINE MONTHS SAYS JIM MAYER PRESIDENT OF DIVERSICORP INC A DALLAS FINANCIALSERVICES AND CONSULTING CONCERN H RICK FUMO MANAGING DIRECTOR OF ARTHUR ANDERSEN'S ENTERPRISE GROUP IN NEW YORK AGREES SMALL COMPANIES DON'T HAVE THE RESOURCES TO WAIT OUT THE LAG DUN & BRADSTREET'S MR DUNCAN SAYS THAT THE WEAKNESS IN EMPLOYMENT GROWTH AT SMALL COMPANIES IS HOLDING BACK THE RECOVERY BUT HE ADDS THAT THE OUTLOOK FOR SMALLBUSINESS JOB CREATION MAY BRIGHTEN SOON MAINLY BECAUSE OF A SURGE IN BUSINESS STARTUPS INCORPORATIONS A KEY INDICATOR OF STARTUP ACTIVITY GREW 53 TO 449900 DURING THE FIRST EIGHT MONTHS OF 1992 UP FROM 427400 A YEAR EARLIER DUN & BRADSTREET SAYS THE GAIN REVERSES A STEADY DECLINE SINCE 1986 WHEN INCORPORATIONS PEAKED AT 703000 YET MANY OF THESE BUSINESSES WILL ALSO DISAPPEAR EVEN IN THE MIDST OF AN IMPROVING ECONOMY NEARLY A FOURTH OF ALL NEW COMPANIES FAIL WITHIN TWO YEARS ACCORDING TO THE US SMALL BUSINESS ADMINISTRATION MORE THAN HALF DO SO WITHIN FOUR YEARS THE SBA ADDS CONSIDER DON D'ORSAY HE OPENED HIS POPIN MARKET IN HAMPTON NH IN 1990 AFTER LOSING HIS JOB AS A PLANT SUPERVISOR AT DATA GENERAL CORP HE SAYS THAT HE INVESTED MORE THAN 100000 IN THE CONVENIENCE STORE SECURING SOME OF THE BORROWED MONEY WITH EQUITY IN HIS HOUSE I TOOK EVERYTHING I HAD AND PUT IT INTO THAT STORE HE SAYS NOW MR D'ORSAY IS IN DANGER OF LOSING EVERYTHING HE SAYS THAT SALES NEVER REACHED EXPECTATIONS BECAUSE THE RECESSION AND BAD WEATHER DISCOURAGED TOURISM IN HAMPTON AND OTHER NEW HAMPSHIRE SEASIDE RESORTS AS THE STORE'S PERFORMANCE STEADILY WORSENED HE SAYS THAT HIS BANK AGREED TO TEMPORARILY WAIVE PRINCIPAL PAYMENTS ON THE STORE'S DEBT TO SHORE UP HIS SHAKY FINANCES MR D'ORSAY SAYS THAT HE EVEN TOOK A SECOND JOB MANAGING ANOTHER AREA CONVENIENCE STORE LAST SEPTEMBER UNABLE TO PAY HIS SUPPLIERS AND UNWILLING TO BORROW MORE MONEY TO GET THROUGH THE WINTER MR D'ORSAY CLOSED THE RETAIL OUTLET IT DIDN'T MATTER THAT TOURISM IN HIS AREA ACTUALLY WAS PICKING UP IN FACT DURING SEPTEMBER TOURIST SPENDING ON LODGING AND MEALS GREW 7 IN ROCKINGHAM COUNTY WHICH INCLUDES HAMPTON TO 195 MILLION FROM 182 MILLION A YEAR EARLIER ACCORDING TO THE NEW HAMPSHIRE OFFICE OF TRAVEL AND TOURISM DEVELOPMENT I HAD HOPES THINGS WOULD WORK OUT MR D'ORSAY SAYS I DON'T LIKE QUITTING BUT NOW HE ADDS I'M CLOSE TO FILING BANKRUPTCY I DON'T HAVE ANY WAY OF PAYING EVERYONE OFF MARKET TRENDS ALSO TURNED AROUND TOO LATE FOR DAVID BOYD MR BOYD OWNED TLC CARPET CARE INC WHICH MAINLY CLEANED COMMERCIAL OFFICE BUILDINGS IN SUBURBAN CLEVELAND INTENSE PRICE CUTTING STEMMING FROM RISING OFFICE VACANCIES BADLY HURT HIS COMPANY IN RECENT YEARS MR BOYD RECALLS YET BY LAST YEAR OFFICE BUILDINGS APPEARED TO BE FILLING UP AGAIN OCCUPANCY RATES IN CLEVELAND'S SUBURBAN AREAS ROSE TO 84 IN 1992 FROM 805 A YEAR EARLIER REPORTS BUILDING OWNERS AND MANAGERS ASSOCIATION INTERNATIONAL A WASHINGTON DC RESEARCH GROUP BUT TLC CARPET WHICH WAS PILING UP LOSSES AT A RATE OF 3400 A MONTH DURING 1992 WAS TOO FAR GONE TO BENEFIT FROM THE UPTURN MR BOYD SAYS HE CLOSED THE BUSINESS AT YEAR'S END I JUST LOST HEART HE SAYS IF THE ECONOMY IS RECOVERING FOR ME IT CAME TOO LATE IN THE YEAR TO BE SURE AN IMPROVING ECONOMY WILL HELP MANY STRUGGLING COMPANIES SAYS GARY BROOKS PRESIDENT OF ALLOMET PARTNERS LTD A NEW YORK TURNAROUNDCONSULTING FIRM WITH AN UPTURN PENDING HE SAYS THE EMOTIONAL ENVIRONMENT CHANGES ANY EVIDENCE OF BETTER TIMES AHEAD MR BROOKS ADDS WILL PROBABLY MAKE A VARIETY OF CREDITORS MORE WILLING TO RESTRUCTURE PAYMENTS OR TAKE OTHER STEPS TO KEEP A COMPANY ALIVE HE URGES SMALLBUSINESS OWNERS IN SUCH STRAITS TO CREATE THE PERCEPTION THAT THE ECONOMIC ENVIRONMENT WILL WORK ON YOUR BEHALF 9301150018 930115 BUSINESS BRIEF LORAL CORP NET ROSE 53 IN 3RD PERIOD AIDED BY MAJOR ACQUISITION LORAL CORP FATTENED BY A MAJOR ACQUISITION SAID NET INCOME INCREASED 53 IN THE THIRD QUARTER TO 456 MILLION OR 115 A SHARE IN THE YEAREARLIER PERIOD ENDING DEC 31 NET INCOME WAS NEARLY 299 MILLION OR 95 CENTS A SHARE THE LATEST QUARTER'S RESULTS WERE BOOSTED BY THE AUG 31 ACQUISITION OF LORAL VOUGHT SYSTEMS FORMER OPERATIONS OF LTV CORP SALES WERE A RECORD 9411 MILLION UP 32 FROM 711 MILLION THE RESULTS WERE BASED ON AVERAGE WEIGHTED SHARES OUTSTANDING OF 396 MILLION COMPARED WITH 316 MILLION SHARES A YEAR AGO THE COMPANY SAID ITS FUNDED BACKLOG AT THE END OF THE RECENT QUARTER WAS 41 BILLION COMPARED WITH 3 BILLION LAST YEAR IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY LORAL GAINED 1125 TO 51125 9301150017 930115 WILT CHAMBERLAIN HOPES TO SCORE BIG WITH FLORIDA DINER BUT PLANNED PUBLIC OFFERING OF 14 MILLION SHARES DRAWS SOME CRITICISM BY ANALYSTS BY CHRISTOPHER ELLIOTT SPECIAL TO THE WALL STREET JOURNAL WILT CHAMBERLAIN THE RETIRED BASKETBALL STAR WANTS TO GIVE THE PUBLIC A SHOT AT BUYING 14 MILLION SHARES OF HIS WILT CHAMBERLAIN'S RESTAURANTS INC BUT SO FAR THE DEAL ISN'T SCORING A LOT OF POINTS WITH SOME ANALYSTS INDEED THE INITIAL PUBLIC OFFERING HAS EVOKED SOME HARSH CRITICISM THE COMPANY CURRENTLY OPERATES JUST ONE DINER IN BOCA RATON FLA THIS IS JUST ANOTHER PLAY ON THE HIGHLY SUCCESSFUL RESTAURANT GAME SAID JAY GOTTLIEB PUBLISHER OF NEW ISSUES DIGEST HIS MOST SCATHING COMMENTS HOWEVER WERE RESERVED FOR THE LATEST ISSUE OF THE DIGEST IN WHICH HE REFERRED TO THE RESTAURANT AS A DOG THESE DAYS HE ADDED ANYONE WHO CAN GET TO THE STOVE WITH A PAN IS TRYING TO GO PUBLIC THERE IS LITTLE DOUBT THAT MR CHAMBERLAIN CAN COOK HIS DIRECTOR OF MENU DEVELOPMENT JOHN BELLEME IS AN HONORS GRADUATE OF THE PRESTIGIOUS CULINARY INSTITUTE OF AMERICA IN HYDE PARK NY AND MOST OF HIS MANAGERS' RESUMES INCLUDE STINTS IN THE FOOD INDUSTRY READERS OF SOUTH FLORIDA MAGAZINE RECENTLY PICKED WILT'S AS ONE OF THEIR FAVORITE PLACES TO EAT AND RESTAURANT CRITIC CAROL ROMANO OF SUNSHINE MAGAZINE SAID YOU'LL BE PLEASANTLY SURPRISED BY ITS QUALITY QUESTION IS CAN THE NBA'S MOST VALUABLE PLAYER FROM 196668 TURN A 10000SQUAREFOOT EATERY IN FLORIDA INTO AN EQUALLY SUCCESSFUL RESTAURANT CHAIN IT'S HARD TO SAY SAYS CHUCK RONSON WHO PUBLISHES THE IPO VALUE MONITOR THIS IS A DREAM EVEN IF THESE GUYS DO HAVE A GOOD CONCEPT THERE'S NO GUARANTEE IT WILL WORK THIS ISN'T THE ATHELETE'S FIRST FORAY INTO THE RESTAURANT BUSINESS HE HAS OWNED TWO OTHER ESTABLISHMENTS A HARLEM NIGHTCLUB AND A LOS ANGELES JAZZ CLUB BUT THIS MARKS HIS FIRST EFFORT TO GO NATIONAL MR CHAMBERLAIN INTENDS TO USE MOST OF THE OFFERING'S PROCEEDS TO TAKE ADVANTAGE OF LOWER REALESTATE PRICES AND OPEN SIX ADDITIONAL RESTAURANTS IN THE US THE COMPANY ALSO IS LOOKING TO OTHER NORTH AMERICAN AND EUROPEAN MARKETS FOR FUTURE EXPANSION EARNINGS FOR THE SINGLE RESTAURANT WHICH HAS LESS THAN A TWOYEAR TRACK RECORD APPEAR TO BE RISING IN 1991 THE COMPANY EARNED 185292 ON SALES OF 41 MILLION IN JUST THE FIRST NINE MONTHS OF 1992 PROFIT HAD RISEN TO 222706 ON SALES OF 31 MILLION THIS IS THE FIRST EQUITY NEW ISSUE FOR LEAD UNDERWRITER MEYERS POLLOCK ROBBINS A 50YEAROLD BROKERAGE FIRM BASED IN NEW YORK 9301150016 930115 BUSINESS BRIEF DANA CORP COMPANY TO TAKE A CHARGE OF 440 MILLION IN 1ST PERIOD DANA CORP SAID IT WILL TAKE A 440 MILLION CHARGE AGAINST FIRSTQUARTER EARNINGS BECAUSE OF AN ACCOUNTING CHANGE THE TOLEDO OHIO COMPANY SAID THE ONETIME CHARGE WILL REDUCE EARNINGS 25 MILLION DANA SAID THE CHARGE IS RELATED TO CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS FOR THE YEARAGO QUARTER DANA POSTED NET INCOME OF 144 MILLION OR 35 CENTS A SHARE ON SALES OF 12 BILLION DANA SAID IT WILL RELEASE FOURTHQUARTER RESULTS NEXT MONTH 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 9301150015 930115 BUSINESS BRIEF TEXAS INSTRUMENTS INC FIRM BACKS A CONSORTIUM FOR HIGHDEFINITION TV TEXAS INSTRUMENTS INC SAID IT IS SUPPORTING THE ADVANCED TELEVISION RESEARCH CONSORTIUM A GROUP PROMOTING ONE OF FOUR COMPETING STANDARDS FOR HIGHDEFINITION TELEVISION THE DALLAS ELECTRONICS COMPANY SAID IT WILL USE THE CONSORTIUM'S DIGITAL TECHNOLOGY IN DEVELOPING INTEGRATED CIRCUITS FOR HIGHDEFINITION TV SETS LATER THIS YEAR THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO ADOPT A US STANDARD FOR THE TECHNOLOGY TOUTED AS A CRITICAL COMPONENT OF THE NEXT GENERATION OF CONSUMER ELECTRONICS AS WELL AS MEDICAL AND MILITARY EQUIPMENT MEMBERS OF THE CONSORTIUM INCLUDE PHILIPS CONSUMER ELECTRONICS CO COMPRESSION LABS INC THE DAVID SARNOFF RESEARCH CENTER AND NATIONAL BROADCASTING CO 9301150014 930115 BUSINESS BRIEF BROAD INC INSURER PLANS AN OFFERING OF SECURITIES NAME CHANGE BROAD INC LOS ANGELES SAID IT PLANS TO OFFER A NEW SERIES OF SECURITIES THAT IF CONVERTED AT THE COMPANY'S OPTION WOULD EQUAL ABOUT 77 OF COMMON STOCK OUTSTANDING AT THE SAME TIME THE BIG INSURANCE AND INVESTMENT COMPANY FOUNDED BY REAL ESTATE INVESTOR ELI BROAD SAID IT PLANS TO CHANGE ITS NAME TO SUNAMERICA INC THE NAME USED BY ITS LARGEST OPERATING UNITS THE DISCLOSURES WERE MADE AS THE COMPANY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION SAYING IT PLANS TO OFFER THREE MILLION DEPOSITARY SHARES EACH REPRESENTING ONEFIFTIETH OF ONE SHARE OF SERIES D MANDATORY CONVERSION PREMIUM DIVIDEND PREFERRED STOCK UNDERWRITERS WILL BE GRANTED AN OPTION TO PURCHASE AS MUCH AS AN ADDITIONAL 450000 DEPOSITARY SHARES AT A YETTOBEDETERMINED MATURITY DATE EACH OF THE DEPOSITARY SHARES WILL CONVERT AUTOMATICALLY INTO ONE SHARE OF COMMON STOCK THE DIVIDEND ON THE DEPOSITARY SHARES WILL BE HIGHER THAN THE CURRENT DIVIDEND ON THE COMMON STOCK HOWEVER BROAD INC MAY CALL THE DEPOSITARY SHARES AT A PREDETERMINED CALL PRICE AT ANY TIME PRIOR TO MATURITY THE DEAL IS SIMILAR TO AN OFFERING OF SIX MILLION SHARES MADE BY THE COMPANY IN OCTOBER 1991 9301150013 930115 BUSINESS BRIEF JOHNSON & JOHNSON FIRM PLANS TO TAKE CHARGES TOTALING 595 MILLION FOR '92 JOHNSON & JOHNSON SAID IT WILL TAKE CHARGES TOTALING 595 MILLION OR 90 CENTS A SHARE AGAINST 1992 EARNINGS FOR ADOPTING NEW ACCOUNTING STANDARDS FOR RETIREE BENEFITS AND FOR DEFERRED INCOME TAXES THE ONETIME CHARGE FOR POSTEMPLOYMENT AND RETIREMENT BENEFITS WILL AMOUNT TO 560 MILLION OR 85 CENTS A SHARE WHILE THE CHANGE IN ACCOUNTING FOR INCOME TAXES WILL RESULT IN A ONETIME CHARGE OF ABOUT 35 MILLION OR FIVE CENTS A SHARE FOR 1991 JOHNSON & JOHNSON REPORTED NET INCOME OF 146 BILLION OR 439 A SHARE ON SALES OF 1245 BILLION THE ACCOUNTING CHANGES ARE RETROACTIVE TO JAN 1 1992 AND WILL BE REFLECTED IN A RESTATEMENT OF 1992 FIRSTQUARTER RESULTS THE NEW BRUNSWICK NJ HEALTH CARE PRODUCTS CONCERN SAID 9301150012 930115 LEISURE & ARTS ON SPORTS HE MAKES 'EM LEAN AND MEAN BY FREDERICK C KLEIN KENNER LA MACKIE SHILSTONE THINKS MANY PROFESSIONAL ATHLETES ARE UNDERNOURISHED AND INAPPROPRIATELY TRAINED HE'S MADE IT HIS BUSINESS TO RIGHT THOSE GRIEVOUS WRONGS FOR DECADES BOXERS TRAINED BY TAKING LONG SLOW RUNS AND EATING AT LEAST ONE STEAK A DAY HE EXPLAINS WE KNOW NOW THAT ROADWORK WAS OVERSTRESSED IN FIGHT TRAINING AND THAT RED MEAT SHOULDN'T BE THE BASIC DIET OF ANY ATHLETE BUT A LOT OF PEOPLE STILL BEHAVE AS THOUGH NOTHING HAS CHANGED THAT'S A SHAME HE GOES ON BECAUSE THE OLD BELIEFS STAND IN THE WAY OF ATHLETES' REALIZING THEIR POTENTIAL BUT ON THE OTHER HAND HE WINKS THAT MEANS MORE WORK FOR ME SINCE HANGING OUT HIS SHINGLE AS AN ATHLETIC PERFORMANCE SPECIALIST 11 YEARS AGO THE SOFTSPOKEN SHILSTONE WHO HOLDS COLLEGE DEGREES IN PHYSICAL EDUCATION NUTRITION BUSINESS AND EVEN POLITICAL SCIENCE SELDOM HAS LACKED FOR WORK HIS FIRST PROMINENT CLIENT WAS THE BOXER MICHAEL SPINKS WHOM HE HELPED BUILD FROM A SKINNYNECKED LIGHT HEAVYWEIGHT TO THE WORLD'S HEAVYWEIGHT CHAMPION HIS MOST RECENT WAS RIDDICK BOWE WHO UNDER HIS SUPERVISION WENT FROM AN OVERWEIGHT SOMETIME ACHIEVER TO THE SVELTE FOR HIM PREDATOR WHO IN NOVEMBER OUTFOUGHT EVANDER HOLYFIELD TO BECOME THE CURRENT HEAVYWEIGHT CHAMP IN BETWEEN HE HELPED BASKETBALL STRINGBEAN MANUTE BOL AND BASEBALLER OZZIE SMITH GAIN WEIGHT AND STRENGTH AND LOTS OF OTHERS TAKE OFF POUNDS THE ENTIRE SAN FRANCISCO GIANTS BASEBALL TEAM IS A CLIENT OF SHILSTONE'S SPORTS PERFORMANCE INSTITUTE AT ST JUDE MEDICAL CENTER IN THIS NEW ORLEANS SUBURB DITTO FOR THE HOCKEY ST LOUIS BLUES REALLY SHILSTONE WAS HIS OWN INITIAL CUSTOMER AS AN UNDERGRAD AT TULANE UNIVERSITY IN HIS NATIVE NEW ORLEANS HE ASPIRED TO BE A FOOTBALL WIDE RECEIVER BUT HIS 5FOOT8 140POUND FRAME WAS AN OBSTACLE EXERCISES HE DEVISED ENABLED HIM TO BECOME A LETTERMAN IF NOT A STAR AT AGE 41 HE STILL TIPS THE SCALES AT HIS COLLEGIATE WEIGHT AND KEEPS UP NICELY WITH HIS PROJOCK CLIENTS ON THE TRACK AND THE EXERCISE MACHINES HE'S WELL AWARE THOUGH THAT GENERAL FITNESS AND THE ABILITY TO DISPLAY TOPLEVEL ATHLETIC SKILL IN HIGHPRESSURE SITUATIONS ARE QUITE DIFFERENT THINGS INDEED THAT AWARENESS IS THE CORNERSTONE OF HIS PRACTICE THE PROBLEM WITH MOST SPORTSCONDITIONING PROGRAMS ISN'T THAT THEY DON'T PROMOTE FITNESS IT'S THAT THE QUESTION FIT FOR WHAT' NEVER GETS ASKED HE DECLARES EXHIBIT A IN THAT REGARD THE TRAINER SAYS MIGHT BE CRAIG IRONHEAD HEYWARD THE 5FOOT11 270ORSOPOUND RUNNING BACK FOR THE FOOTBALL NEW ORLEANS SAINTS HE WAS REFERRED TO SHILSTONE BY HIS TEAM AFTER LEG INJURIES KEPT HIM OUT OF ALL BUT SEVEN GAMES IN 1991 THE SAINTS CALLED AND SAID THEY WANTED ME TO HELP CRAIG LOSE WEIGHT BUT AFTER WE'D TALKED AWHILE IT BECAME CLEAR WHAT THEY REALLY WANTED WAS FOR HIM TO STAY HEALTHY AND PLAY BETTER SHILSTONE SAYS AFTER EXAMINING HEYWARD HE DETERMINED THAT THE PLAYER NEEDED STRONGER LEGS AND MORE AGILITY NOT FEWER POUNDS AND SET HIM UPON AN EXERCISE COURSE TO ACHIEVE THAT HEYWARD WOUND UP PLAYING THIS SEASON AT CLOSE TO 275 POUNDS MORE THAN HE'D HAULED IN SOME PREVIOUS CAMPAIGNS BUT EMERGED INJURY FREE AND WITH HIS SECONDBEST YARDAGE TOTALS OF A FIVEYEAR CAREER CRAIG'LL NEVER BE AN OJ SIMPSON BUT HE WAS A MUCH BETTER CRAIG HEYWARD THIS SEASON THAN LAST SHILSTONE SAYS THE WEIGHT ISSUE HE CONTINUES COMES UP FREQUENTLY IN BIGTIME SPORTS ONLY WITH THE PROBLEM OF TOO LITTLE ARISING AS FREQUENTLY AS TOO MUCH PROFESSIONAL ATHLETES HE SAYS OFTEN SKIP MEALS AND EAT UNWISELY WHEN THEY DO DINE LEAVING THEMSELVES VULNERABLE TO DECLINING PERFORMANCE AND FATIGUECAUSED MISHAPS AS SCHEDULES DRAG ON SMITH THE LONGTIME ST LOUIS CARDINALS SHORTSTOP BEGAN SEASONS AT 155 POUNDS AND ENDED THEM AT LESS THAN 145 BEFORE A SHILSTONEPRESCRIBED DIET OF LOWFAT FOODS MAINLY CHICKEN FISH AND VEGGIES AND HIGHPROTEIN SUPPLEMENTS BOOSTED HIM TO 160 POUNDS KEPT HIM THERE AND HELPED KICK UP HIS POWERHITTING STATS BESIDES ST LOUIS BLUES PLAYERS NOW QUAFF HIGHPROTEIN DRINKS BEFORE AND AFTER GAMES THE BETTER TO REPLACE THE 1000 OR SO CALORIES EACH BURNS DURING A TYPICAL CONTEST A GLANCE AT THE STANDINGS THIS WEEK SHOWED THE BLUES TO BE IN FIFTH PLACE IN THE NATIONAL HOCKEY LEAGUE'S NORRIS DIVISION SO BETTERFED DOESN'T NECESSARILY MEAN BETTER SIMILARLY THE 25 POUNDS OF MUSCLE THAT SHILSTONE CAUSED BOXER SPINKS TO ADD MIGHT HAVE HELPED THAT WORTHY DEFEAT A UH MATURE LARRY HOLMES BUT DIDN'T HELP HIM MUCH AGAINST MIKE TYSON THE IDEAL COMBINATION OF ATHLETE AND METHOD THOUGH SEEMS TO HAVE BEEN REACHED WHEN SHILSTONE WAS JOINED WITH BOWE LATE IN SEPTEMBER SIX WEEKS BEFORE THE FIGHTER'S TITLE DATE WITH HOLYFIELD THE 6FOOT5 BOWE ARRIVED AT TRAINING CAMP WEIGHING 259 POUNDS OF WHICH 16 WAS BODY FAT BY WEIGHIN TIME THOSE NUMBERS HAD SHRUNK TO 235 AND 12 AND WHILE BOWE STEPPED INTO THE RING AT 242 POUNDS THE LOWER FIGURE WAS REACHED LARGELY TO CONVINCE THE NEWS MEDIA AND TO REASSURE THE FIGHTER HIMSELF THAT BOWE MEANT BUSINESS SHILSTONE SAYS HE'D ACHIEVED THE LEAN PORTION OF THE FAMILIAR SPORTSBUSINESS CLICHE THE MEAN PART WAS INDUCED BY THE TRAINING REGIMEN OVERSEEN BY SHILSTONE AND EDDIE FUTCH BOWE'S 81YEAROLD TACTICIAN SHILSTONE ALREADY HAD TRANSPLANTED TO BOXING TRACK AND FIELD'S ARDUOUS INTERVALRUNNING TECHNIQUE SPRINT REST SPRINT REST WHICH PARALLELS THE RING SPORT'S ROUNDBYROUND PACE THE TRAINER ALSO HELPED INTRODUCE RESISTANCE TRAINING IN THE FORM OF A HARNESS THAT MAKES A FIGHTER PUNCH AGAINST SURGICALTUBING RESTRAINTS AND WITH BOWE REFINED IT BY RIGGING THE DEVICE SO THE RESISTANCE WAS MAINTAINED IN EVERY PART OF THE SPARRING RING THE UPSHOT WAS THAT THE LARGER BOWE NOT ONLY THREW AND LANDED MORE PUNCHES THAN HIS FITNESSBUFF FOE BUT ALSO WAS STRONGER IN THE LATE GOING CEMENTING HIS TRIUMPH WITH A KNOCKDOWN IN THE 11TH ROUND OF THE 12ROUND BOUT WE OUTCONDITIONED THE BESTCONDITIONED MAN IN BOXING CROWS SHILSTONE THE WE IN BOXING USUALLY IS RESERVED FOR MANAGERS BUT THIS TIME IT SOUNDED OK COMING FROM AN ATHLETIC PERFORMANCE SPECIALIST 9301150011 930115 CREDIT MARKETS TREASURY'S YIELD DROPS TO 739 AS INVESTORS CONTINUE TO ABSORB DELUGE OF CORPORATE BONDS BY TERENCE DONNELLY AND SAM ALCORN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INVESTORS CONTINUED TO FEAST AS A DELUGE OF NEW CORPORATE BOND ISSUES INCLUDING TWO SIZABLE YANKEE BOND DEALS SWEPT THROUGH THE MARKET SO FAR THIS WEEK NEARLY 12 BILLION OF NEW CORPORATE BONDS HAS BEEN SOLD TO INVESTORS ONE INDICATOR OF SOLID DEMAND WAS THE HEALTHY CONDITION OF THE TREASURY MARKET WHERE SOME NOTES AND BOND PRICES ROSE MORE THAN 3/8 OF A POINT CORPORATE UNDERWRITERS OFTEN SELL SHORT IN THE TREASURY MARKET TO HEDGE AGAINST ANY PRICE DROPS WHILE THEY ARE SELLING NEW CORPORATE BONDS AND THUS PUT DOWNWARD PRESSURE ON TREASURY PRICES IN A SHORT SALE AN UNDERWRITER SELLS A BORROWED TREASURY NOTE OR BOND IN THE HOPE OF REPLACING IT AT A LOWER COST AND POCKETING THE DIFFERENCE BUT YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/8 POINT OR 375 FOR A BOND WITH A 1000 FACE VALUE AS ITS YIELD DROPPED TO 739 FROM 743 WEDNESDAY THE SESSION'S BUSINESS INCLUDED THE LARGEST YANKEE BOND OFFERING EVER A 15 BILLION TWOPART OFFERING BY HYDROQUEBEC A HYDROELECTRIC UTILITY OWNED BY THE QUEBEC GOVERNMENT MERRILL LYNCH WAS LEAD MANAGER ON THE DEAL MUCH OF THE PROCEEDS WILL BE USED TO FULFILL A COMPANY OFFER TO BUY BACK HIGHERYIELDING DEBT THAT IS NOT YET CALLABLE THE OTHER MAJOR YANKEE ISSUE WAS A 125 BILLION TWOPART NOTE OFFERING BY HANSON OVERSEAS FINANCE BV A UNIT OF HANSON PLC A LONDON INDUSTRIAL MANAGEMENT COMPANY INVESTOR DEMAND PROVED SO STRONG THAT UNDERWRITERS LED BY FIRST BOSTON CORP ENLARGED THE DEAL FROM AN ORIGINALLY PLANNED 850 MILLION YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN ENTITITIES THEY ARE OFTEN SOLD IN THE US DESPITE THE ENORMOUS VOLUME THE YIELD GAPS BETWEEN CORPORATE BONDS AND TREASURYS APPEARED TO BE HOLDING STEADY AND EVEN NARROWING IN SOME SECTORS SUCH AS LONGTERM INDUSTRIALS INVESTORS SAID THIS SIGNALED THAT THE MARKET WAS STRONG AND WOULD ENCOURAGE CONTINUED ISSUANCE IN THE WEEKS TO COME IN SECONDARY TRADING MOST HIGHGRADE BONDS ENDED 1/8 TO 1/4 OF A POINT HIGHER WITH TREASURYS WHILE JUNK BONDS WERE FLAT TO UP 1/8 IN LIGHT TRADING DEMAND FOR SECONDARY JUNK BONDS REMAINS STRONG TRADERS SAID BECAUSE THE NEW ISSUE MARKET ISN'T EXPECTED TO MOVE INTO HIGHER GEAR FOR ABOUT TWO WEEKS INVESTORS SAID THEY WERE SURPRISED HOW WELL THE CORPORATE MARKET HAS ABSORBED THE ROUHLY 20 BILLION OF NEW DEBT PRICED SO FAR THIS YEAR IT APPEARS THAT SUPPLY CONCERNS ARE NOT STRONG ENOUGH TO HURT THE MARKET SAID BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP THE CORPORATE MARKET HAS SHOWN REMARKABLE RESILIENCE MS KENWORTHY SAID THAT DESPITE YESTERDAY'S HYDROQUEBEC DEAL AND ONTARIO PROVINCE'S 3 BILLION GLOBAL OFFERING TUESDAY SPREADS ON CANADIAN YANKEE ISSUES ARE HOLDING STEADY OR NARROWING SOME THE HYDRO DEAL INCLUDED A 500 MILLION ISSUE OF 10YEAR DEBENTURES PRICED AT PAR TO YIELD 7375 OR 075 PERCENTAGE POINT ABOVE THE TREASURY'S 10YEAR NOTE THE SECOND PART CONSISTING OF 1 BILLION OF 20YEAR DEBENTURES WAS PRICED WITH AN 8 COUPON AT 99486 TO YIELD 8052 OR 065 PERCENTAGE POINT ABOVE THE TREASURY'S 30YEAR BOND BOTH PARTS ARE NONCALLABLE AND RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP DANIEL LECLAIR TREASURER OF HYDROQUEBEC SAID YESTERDAY'S OFFERING COMBINED WITH A TENDER OFFER FOR FIVE ISSUES OUTSTANDING OF HIGHERCOUPON DEBT TOTALING 800 MILLION WOULD ALLOW THE UTILITY TO SAVE ROUGHLY 5 IN NET INTEREST COSTS A YEAR INTEREST RATES ON THE FIVE ISSUES RANGE FROM 1070 TO 13375 MR LECLAIR SAID WE CAME TO MARKET BECAUSE THE LOW INTEREST RATE ENVIRONMENT ALLOWED US TO SAVE SUBSTANTIALLY ON NET INTEREST COST MR LECLAIR SAID HE SAID THAT THE UTILITY MIGHT COME TO MARKET AGAIN BY THE SUMMER AS LONG AS INTEREST RATES REMAIN STABLE THE UTILITY HAS ABOUT 2 BILLION LEFT IN ITS SHELF REGISTRATION AFTER YESTERDAY'S OFFERING HE SAID YESTERDAY'S OTHER LARGE YANKEE OFFERING BY HANSON OVERSEAS FINANCE ALSO MET STRONG DEMAND ACCORDING TO MARKET ANALYSTS AND UNDERWRITERS STEPHEN HESTER A MANAGING DIRECTOR AT FIRST BOSTON CORP THE UNDERWRITER FOR THE DEAL SAID THE OFFERING OF THREEYEAR AND 10YEAR NOTES WAS SO POPULAR THAT A NUMBER OF CLIENTS DIDN'T GET THEIR FULL ALLOCATIONS THE DEAL MARKED HANSON'S DEBUT IN THE US CREDIT MARKETS ACCORDING TO FIRST BOSTON MARTIN TAYLOR VICE CHAIRMAN OF THE COMPANY SAID THE OFFERING WAS PART OF A PLAN TO DIVERSIFY THE COMPANY'S FINANCE SOURCES HE ALSO SAID THE STRENGTH OF THE US DOLLAR WAS AN IMPORTANT FACTOR IN DECIDING TO COME TO THE US CORPORATE DEBT MARKET THE FIRST PART OF THE 125 BILLION TWOPART ISSUE CONSISTED OF 500 MILLION OF THREEYEAR NOTES MATURING IN 1996 AND PRICED WITH A 5 1/2 COUPON AT 99749 TO YIELD 5592 THE PRICE MADE FOR A SPREAD OF 070 PERCENTAGE POINT ABOVE THE TREASURY'S THREEYEAR NOTE THE SIZE OF THE THREEYEAR NOTE ISSUE WAS RAISED FROM AN ORIGINALLY PLANNED 350 MILLION THE SECOND PART CONSISTING OF 750 MILLION OF 10YEAR NOTES MATURING IN 2003 WAS PRICED WITH A COUPON OF 7 3/8 AT 99468 TO YIELD 7451 THE PRICE MADE FOR A SPREAD OF 080 PERCENTAGE POINT ABOVE THE TREASURY'S 10YEAR NOTE THE ISSUE WAS RAISED FROM A PREVIOUSLY PLANNED 500 MILLION BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P PRICES ENDED AS MUCH AS 14/32 POINT HIGHER AFTER SEESAWING EARLY IN THE SESSION AS PARTICIPANTS SORTED OUT A SPATE OF ECONOMIC DATA SENTIMENT WAS HELPED BY CONTINUED SPECULATION THAT PRESIDENTELECT CLINTON'S ADMINISTRATION WILL SEEK TO TAKE A BIGGER BITE OUT OF THE FEDERAL BUDGET DEFICIT AND SHIFT SOME OF ITS GARGANTUAN BORROWING NEEDS TO SHORTER MATURITIES RUMORS THAT THE FEDERAL RESERVE WOULD CUT SHORTTERM INTEREST RATES IF MR CLINTON AGGRESSIVELY CUTS THE BUDGET DEFICIT OR IF THE ECONOMY WERE TO BEGIN TO FALTER GAVE A BOOST TO THE MARKET IN THE AFTERNOON SAID TRADERS THAT KIND OF TALK HAS BEEN AROUND BEFORE SAYS DOUGLAS MCALLISTER A VICE PRESIDENT OF TAXABLE FIXEDINCOME AT PRUDENTIAL SECURITIES INC WHETHER IT'LL COME TO PASS IS PURE CONJECTURE THE MARKET HAS CONVINCED ITSELF THAT CLINTON IS GOING TO PAY MORE ATTENTION TO THE DEFICIT THAN THEY ORIGINALLY THOUGHT MR MCALLISTER SAID WE'VE GOT TO SEE SOME ACTION SHORTLY AFTER HE'S INAUGURATED SOMETHING WITHIN THE FIRST MONTH OR THE MARKETS WILL CONCLUDE IT'S A BAG OF HOT AIR MANY ECONOMISTS STILL SAY SUCH A MOVE BY THE FED IS UNLIKELY GIVEN THE CURRENT SLOW BUT STEADY US ECONOMIC GROWTH AND MR CLINTON'S RECENT MOVES TO A MORE MODEST DEFICITREDUCTION PROGRAM THE 10YEAR NOTE ROSE 13/32 TO 98 7/32 FOR A YIELD OF 661 DOWN FROM 667 THE FIVEYEAR NOTE ROSE 10/32 TO 100 23/32 FOR A YIELD OF 582 DOWN FROM 589 THE TWOYEAR NOTE ROSE NEARLY 1/4 POINT TO 100 18/32 FOR A YIELD OF 431 DOWN FROM 439 TRADERS INTERPRETED NEWS OF A RISE OF 52000 IN INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE IN THE WEEK ENDED JAN 2 AS ANOTHER SIGN THAT LABOR MARKET CONDITIONS WEREN'T IMPROVING A BIGGERTHANANTICIPATED 12 INCREASE IN DECEMBER RETAIL SALES WAS SHRUGGED OFF AS PARTICIPANTS OPTED TO FOCUS ON THE REVISION IN NOVEMBER RETAIL SALES TO A 05 DECLINE FROM A PREVIOUSLY REPORTED 04 RISE NEWS LATE IN THE SESSION THAT THE M2 MONEY AGGREGATE DROPPED BY AN UNEXPECTED 72 BILLION IN THE WEEK ENDED JAN 4 GAVE INTERMEDIATE TREASURY SECURITIES ANOTHER SLIGHT LIFT THE AGGREGATE HAD BEEN EXPECTED TO INCREASE 600 MILLION IN THE WEEK ACCORDING TO A CONSENSUS OF SEVERAL ECONOMISTS' FORECASTS THE DECLINE LEFT M2 AT A 15 GROWTH RATE FROM ITS FOURTHQUARTER BASE THE FED'S CURRENT TARGET IS FOR 25 TO 65 GROWTH M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEYMARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 PRICES WERE UNCHANGED TO 1/2 POINT STRONGER IN BUSY DEALINGS LATE IN THE DAY SPRINGING TO LIFE AFTER NEARLY A WEEK OF LETHARGY AMONG ACTIVE ISSUES THE CALIFORNIA PUBLIC WORKS BOARD'S 6 OF 2017 LEASE REVENUE BONDS FINISHED 1/2 POINT STRONGER AT 97 1/497 1/2 YIELDING 620 TRADERS SAID THE CLIMB IN TREASURYS HELPED SPUR RENEWED BUYING MUNICIPAL ISSUES ALSO WERE HELPED BY A MORE FAVORABLE NEARTERM SUPPLY SCENARIO IN THAT MARKET SOME SAID NEXT WEEK'S PRICING CALENDAR ISN'T VERY FULL WITH ONLY ABOUT 1 BILLION OF NEGOTIATED ISSUES SLATED FOR PRICING WHEN THE PRIMARY MARKETS ARE BUSY THAT AMOUNT OF DEBT CAN BE PRICED IN LESS THAN AN HOUR AMONG ISSUES THAT CAME TO THE MARKET YESTERDAY WAS THE DISTRICT OF COLUMBIA'S 83750000 SERIES 1993 CERTIFICATES OF PARTICIPATION THIS IS THE FIRST TIME THE DISTRICT HAS ENTERED THE SOCALLED COPS MARKET PROCEEDS WILL BE USED TO HELP PURCHASE LAND UNDER AN OFFICE BUILDING THAT THE DISTRICT CURRENTLY OWNS AND OPERATES A PAINEWEBBER INC GROUP GAVE THE CERTIFICATES YIELDS RANGING FROM 610 IN 1997 TO 740 IN 2013 THE SECURITIES HAVE BEEN RATED TRIPLEB BY STANDARD & POOR'S CORP AND FITCH INVESTORS SERVICE MORTGAGE SECURITIES ENDED MODERATELY FIRMER BUT THEIR PERFORMANCE TRAILED THAT OF TREASURY ISSUES CAUSING YIELD SPREADS BETWEEN THE TWO MARKETS TO WIDEN SLIGHTLY THE 7 1/2 ISSUES FOR FEBRUARY DELIVERY ALL ROSE 5/32 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION TRADED AT 100 11/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS WERE AT 100 15/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION TRADED AT 100 8/32 THE 10YEAR TREASURY NOTES ROSE 10/32 IN PRIMARY MARKET ACTIVITY 11 BILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WAS ANNOUNCED THAT BRINGS THE WEEK'S AGENCY REMIC VOLUME TO 51 BILLION APPROACHING THE STRONG 55 BILLION SEEN LAST WEEK OTHER ISSUANCE INCLUDED AN INCREASE IN FANNIE MAE'S SERIES 199310 TO 800 MILLION FROM 500 MILLION AND AN INCREASE IN FREDDIE MAC'S SERIES GOLD 1468 TO 15 BILLION FROM 1 BILLION IN ADDITION FREDDIE MAC'S GOLD MACS MODIFIABLE AND COMBINABLE SECURITIES PROGRAM WHICH MADE ITS DEBUT THIS WEEK WITH A HUGE OFFERING VIA PRUDENTIAL SECURITIES INC WAS BOOSTED AS EXPECTED TO 2 BILLION FROM 16 BILLION THAT MAKES THE OFFERING BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE LARGEST AGENCY STRIPS TRUST TO DATE FREDDIE MAC SAID THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9301150010 930115 MAGNETEK SAYS OPERATING PROFIT ROSE IN QUARTER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES MAGNETEK INC EXPECTS TO REPORT THAT OPERATING PROFIT CLIMBED ABOUT 13 TO 28 MILLION FROM 248 MILLION IN THE FISCAL SECOND QUARTER ENDED DEC 31 SAID DAVID P REILAND SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SALES IN THE QUARTER JUMPED ABOUT 30 TO 370 MILLION FROM 2838 MILLION IN THE YEAREARLIER QUARTER HE SAID THE INCREASES IN SALES AND OPERATING PROFIT REFLECT A SURGE IN DEMAND FOR MAGNETEK'S ELECTRONIC BALLASTS POWER SUPPLY PRODUCTS THAT CUT ENERGY CONSUMPTION OF LIGHTING FIXTURES BY AS MUCH AS 40 MAGNETEK SAID THE BALLASTS ACCOUNT FOR ROUGHLY A QUARTER OF MAGNETEK'S TOTAL REVENUE WE CONSIDER THE SECOND QUARTER A TURNING POINT WE THINK THE UPWARD TREND WILL CONTINUE THROUGH THE REST OF THIS YEAR AND HOPEFULLY INTO NEXT SAID FRANK PERNA JR PRESIDENT AND CHIEF EXECUTIVE OFFICER PROFIT AS A PERCENTAGE OF SALES FELL SLIGHTLY IN THE SECOND QUARTER MAINLY REFLECTING SOFTNESS IN CERTAIN HIGH MARGIN PRODUCTS AND POOR ECONOMIC CONDITIONS IN EUROPE MR REILAND SAID THE COMPANY IS STILL IN THE RATIONALIZATION PROCESS OF INTEGRATING THE OPERATIONS OF A MAJOR GERMAN ELECTRICAL EQUIPMENT MAKER ACQUIRED LAST MARCH MAGNETEK WILL REPORT A SECONDQUARTER NET LOSS OF ABOUT 40 MILLION OR 165 A PRIMARY SHARE AFTER ACCOUNTING CHANGES RELATED TO RETIREE MEDICAL BENEFITS AND INCOME TAXES THE CHARGES ARE EQUAL TO BETWEEN 48 MILLION AND 49 MILLION OR A LITTLE UNDER 2 A PRIMARY SHARE THE NET LOSS IS EQUAL TO ABOUT 134 A SHARE ON A FULLY DILUTED BASIS IN THE YEAREARLIER QUARTER THE COMPANY REPORTED NET INCOME OF 38 MILLION OR 16 CENTS A SHARE EXCLUDING THE EXTRAORDINARY CHARGES INCOME WILL BE UP ABOUT 19 TO A LITTLE OVER 8 MILLION OR 34 CENTS A SHARE COMPARED WITH 67 MILLION OR 28 CENTS A SHARE IN THE YEAREARLIER QUARTER ON A FULLY DILUTED BASIS PERSHARE INCOME BEFORE THE CHARGES ROSE TO 31 CENTS FROM 26 CENTS THE REAL POSITIVE NOTE IS THAT ENERGYENGINEERED PRODUCTS ARE DRIVING THE COMPANY MR PERNA SAID MANY UTILITIES ACROSS THE COUNTRY ARE OFFERING REBATES TO ENCOURAGE THE USERS OR OWNERS OF BUILDINGS TO CHANGE OUT THEIR EXISTING MAGNETIC BALLASTS AND PUT IN ELECTRONIC ONES HE SAID THE REBATES COVER HALF TO AS MUCH AS 90 OF THE COST SINCE JUNE MAGNETEK HAS DOUBLED ITS MANUFACTURING CAPACITY TO MEET DEMAND FOR THE ENERGYSAVING BALLAST PRODUCTS AND OVER THE NEXT SIX MONTHS MAGNETEK EXPECTS TO DOUBLE CAPACITY AGAIN WE'VE HIRED OVER 600 PEOPLE IN THE LAST SIX MONTHS AND WILL PROBABLY HIRE ANOTHER 500 BEFORE THE YEAR IS OUT MR PERNA SAID STRENGTH IN THE ELECTRONIC BALLAST SEGMENT HAS MORE THAN OFFSET SOFTNESS IN THE EUROPEAN OPERATIONS AND IN OTHER LATE CYCLE PRODUCTS SUCH AS LARGE MOTORS AND CONTROL SYSTEMS SOLD TO UTILITIES AND OTHER INDUSTRIAL CUSTOMERS HE SAID THESE MARKETS ARE POISED TO REBOUND WHEN THE WORLDWIDE ECONOMY REBOUNDS FOR THE FISCAL FIRST HALF MAGNETEK EXPECTS A NET LOSS OF JUST UNDER 34 MILLION OR ABOUT 137 A PRIMARY SHARE AFTER THE ACCOUNTING CHARGES IN THE YEAREARLIER HALF THE COMPANY HAD NET INCOME OF 105 MILLION OR 44 A SHARE THE PERSHARE LOSS WAS EQUAL TO 109 ON A FULLY DILUTED BASIS COMPARED WITH PERSHARE YEARAGO NET INCOME OF 43 CENTS ON THE SAME BASIS SALES ARE EXPECTED TO RISE ABOUT 21 TO 700 MILLION FROM 5776 MILLION 9301150009 930115 TECHNOLOGY JAPAN GROUP INVESTS 971 MILLION TO REVIVE MAGLEV TRAIN VENTURE TOKYO FINANCIAL BACKERS OF JAPAN'S HSST CORP ONE OF ONLY THREE COMPANIES IN THE WORLD WORKING ON MAGNETICALLY LEVITATED TRAINS HAVE RELAUNCHED THE TROUBLED VENTURE AFTER INFUSING IT WITH CASH HSST A SEVENYEAROLD JAPAN AIRLINES SPINOFF FORMED TO DEVELOP TRAINS THAT USE POWERFUL MAGNETS TO FLOAT ABOVE RAIL LINES SAID IT HAS RECEIVED 122 BILLION YEN 971 MILLION IN NEW CAPITAL FROM JAL AND OTHER INVESTORS AND CHANGED ITS NAME TO HSST DEVELOPMENT CORP ADVOCATES CLAIM THAT MAGLEV TRAINS WHICH ARE POTENTIALLY FASTER QUIETER AND LESS POLLUTING THAN CONVENTIONAL LOCOMOTIVES WILL REVIVE INTEREST IN RAIL TRAVEL AS AN ALTERNATIVE TO CLOGGED HIGHWAYS AND POSSIBLY EVEN SHORT AIRLINE FLIGHTS THE COMPANY SUCCESSFULLY DEMONSTRATED A MAGLEV SYSTEM IN VANCOUVER BRITISH COLUMBIA IN 1986 BUT OVER THE NEXT SEVERAL YEARS HSST WHICH STANDS FOR HIGH SPEED SURFACE TRANSPORT RACKED UP DEBT OF NEARLY FIVE BILLION YEN ON ITS INITIAL CAPITALIZATION OF 50 MILLION YEN WITHOUT MAKING ANY SALES ITS BACKERS FINALLY BALKED AND IN LATE 1991 JAL ANNOUNCED PLANS TO RESTRUCTURE THE COMPANY JAL AND NAGOYA RAILROAD CO THE TWO LARGEST INVESTORS EACH HAVE TAKEN A 212 STAKE IN THE COMPANY OTHER INVESTORS INCLUDE CONSTRUCTION COMPANIES BANKS AND OTHER FINANCIAL INSTITUTIONS AND EQUIPMENT MANUFACTURERS THIS MEANS THAT THE NEW COMPANY IS BEING SUPPORTED BY A MUCH BROADER CROSSSECTION OF INDUSTRY SO IT WILL HAVE A MUCH BETTER REPUTATION SAID YUI KITTAKA AN HSST DEVELOPMENT SPOKESMAN OTHER GROUPS WORKING ON MAGLEV TRAINS ARE THE JAPAN RAILWAYS SYSTEM AND TRANSRAPID INTERNATIONAL OF GERMANY 9301150008 930115 HONEYWELL'S CHINESE VENTURE MINNEAPOLIS HONEYWELL INC SAID IT FORMED A JOINT VENTURE WITH CHINA NATIONAL PETROCHEMICAL CORP TO SELL AND DISTRIBUTE HONEYWELL'S PROCESSCONTROL SYSTEMS TO THE HYDROCARBON PROCESSING INDUSTRY IN CHINA THE CONTROLS CONCERN SAID THE JOINT VENTURE SINOPEC HONEYWELL LTD WILL ALSO DEVELOP CONTROLSYSTEM TECHNOLOGY FOR THE HYDROCARBON PROCESSING INDUSTRY THE VENTURE WILL BE ESTABLISHED IN THE TIANJIN HARBOUR FREE TRADE ZONE IN TIANJIN 9301150007 930115 BUSINESS BRIEF LOCKHEED CORP UNIT GETS CONTRACT TO SUPPLY EQUIPMENT FOR TOLL ROADS LOCKHEED INFORMATION MANAGEMENT SYSTEMS A SUBSIDIARY OF LOCKHEED CORP SAID IT RECEIVED A 600 MILLION CONTRACT TO SUPPLY THE TOLL COLLECTION AND REVENUE MANAGEMENT SYSTEM FOR ORANGE COUNTY'S THREE TOLL ROADS THE COSTA MESA CALIF COMPANY SAID 50 JOBS WILL BE CREATED AS A RESULT OF THE 20YEAR CONTRACT WHICH CALLS FOR IT TO ADAPT CURRENT TECHNOLOGIES TO READ CREDITCARD SIZE TRANSMITTING DEVICES FROM INSIDE CARS AS THEY TRAVEL THE ROADS LOCKHEED SAID SIMILAR TECHNOLOGY IS NOW BEING USED BY OTHER COMPANIES IN TEXAS LOUISIANA OKLAHOMA AND FLORIDA THE COMPANY'S OTHER BUSINESS FOCUSES ON ASSISTING STATE AND LOCAL GOVERNMENTS IN GATHERING AND PROCESSING DATA TO TRACK PARENTAL CHILD SUPPORT OBLIGATIONS AND COLLECTING PARKING TICKET REVENUES LOCKHEED CORP IS BASED IN CALABASAS CALIF THE COMPANY SAID IT WON THE CONTRACT WHICH WILL ASSIST ITS PARENT COMPANY IN MOVING AWAY FROM ITS HEAVY DEPENDENCE ON DEFENSE CONTRACTING IN A BIDDING WAR WITH HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP KIEWIT NETWORK TECHNOLOGIES A SUBSIDIARY OF PETER KIEWIT SONS INC AND WESTINGHOUSE ELECTRIC CORP 9301150006 930115 MICROSOFT POSTS 35 INCREASE IN PROFIT FOR ITS 2ND PERIOD ON 38 SALES RISE BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE MICROSOFT CORP JUGGERNAUT ONLY SLOWED SLIGHTLY IN THE FISCAL SECOND QUARTER AS THE SOFTWARE GIANT REPORTED A 35 GAIN IN NET INCOME ON A 38 JUMP IN REVENUE THE COMPANY SAID IT EARNED 236 MILLION OR 78 CENTS A SHARE FOR THE QUARTER ENDED DEC 31 COMPARED WITH 175 MILLION OR 60 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE WAS 938 MILLION UP FROM 682 MILLION FRANK GAUDETTE MICROSOFT'S CHIEF FINANCIAL OFFICER ATTRIBUTED THE BIG GAINS TO A CONTINUING SURGE IN DEMAND FOR THE COMPANY'S WINDOWS OPERATING SYSTEM FOR PERSONAL COMPUTERS AND SALES OF APPLICATIONS PROGRAMS SUCH AS SPREADSHEETS AND WORD PROCESSORS BASED ON BOTH WINDOWS AND APPLE COMPUTER INC'S MACINTOSH LINE THE RESULTS PRODUCED A NET PROFIT MARGIN OF 25 ABOUT THE SAME AS THE PREVIOUS QUARTER AND THREE TO FIVE TIMES THAT OF MOST OTHER SUCCESSFUL LARGE COMPANIES IN THE COMPUTER AND SOFTWARE INDUSTRIES APPLE'S MARGIN FOR INSTANCE IS 8 FOR THE TIME BEING MICROSOFT IS DIVVYING UP MOST OF THE PROFITS IN THE PERSONAL COMPUTER BUSINESS WITH INTEL CORP WHICH YESTERDAY REPORTED BOOMING FOURTHQUARTER EARNINGS AND A 23 NET PROFIT MARGIN BOTH COMPANIES ARE ROBUST YOUNG NEARMONOPOLIES MICROSOFT SUPPLIES THE OPERATING SYSTEM FOR ABOUT 90 OF ALL PCS WHILE INTEL PROVIDES MOST OF THE MICROPROCESSORS AND IS EXCLUSIVE SELLER OF THE MOST POWERFUL CHIP IN ITS LINE THE REDHOT 486 IN ADDITION MICROSOFT SEIZED AN EARLY LEAD IN WRITING APPLICATION SOFTWARE FOR ITS WINDOWS SYSTEM AND NOW HAS A DOMINANT POSITION IN THAT MARKET MOREOVER BOTH COMPANIES HAVE REAPED BIG PROFITS FROM THE PRICE WAR AMONG COMPUTER MAKERS WHICH SPARKED A SURGE IN UNIT SALES MR GAUDETTE INDICATED MICROSOFT WILL BENEFIT IN THE SECOND HALF FROM SEVERAL NEW PRODUCTS INCLUDING ITS BARGAINPRICED ACCESS DATABASE WHICH BEGAN SHIPPING IN NOVEMBER A WINDOWS VERSION OF A HIGHSPEED DATABASE PRODUCT CALLED FOXPRO WILL BE SHIPPED IN THE CURRENT QUARTER THE COMPANY ALSO RELEASED A NETWORKING OPERATING SYSTEM WINDOWS FOR WORKGROUPS AIMED AT ITS MOST SUCCESSFUL RIVAL RIGHT NOW NOVELL INC OF PROVO UTAH WHICH MAKES NETWORKING OPERATING SOFTWARE THE MOST IMPRESSIVE THING TO ME WAS THE YEAROVERYEAR GROWTH IN APPLICATIONS SAID BRUCE LUPATKIN AN ANALYST FOR HAMBRECHT & QUIST SAN FRANCISCO IT WAS OVER 50 WHEN THE REST OF THE PACKAGED SOFTWARE INDUSTRY IS NOT ENJOYING ANYWHERE NEAR THAT KIND OF GROWTH MICROSOFT'S EARNINGS WERE EXACTLY EVEN WITH THE MEDIAN ESTIMATE OF ANALYSTS FOR THE QUARTER ACCORDING TO ZACKS INVESTMENT RESEARCH INC MICROSOFT'S RESULTS WERE ANNOUNCED AFTER CLOSE OF TRADING YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING MICROSOFT SHARES WERE UNCHANGED AT 9125 THAT ISN'T MUCH BELOW ITS RECORD HIGH OF 95 SET IN NOVEMBER AND IS UP NEARLY 40 SINCE A STOCK SPLIT IN JUNE AT SOME POINT HOWEVER THE BOOM GENERATED BY THE COMPUTER PRICE WAR WILL FADE OTHER SOFTWARE COMPANIES WILL OFFER MORE WINDOWS PRODUCTS AND MICROSOFT'S GROWTH WILL SLOW BOTH MR GAUDETTE AND WILLIAM GATES THE COMPANY'S CHIEF EXECUTIVE OFFICER HAVE WARNED REPEATEDLY THAT A 25 NET PROFIT MARGIN AND 50 REVENUE GROWTH ARE UNSUSTAINABLE IN FISCAL 1992 MICROSOFT'S REVENUE JUMPED 50 TO 276 BILLION WHILE NET INCOME ROSE 53 THE COMPANY'S GROWTH HAS OBVIOUSLY SLOWED FROM THAT TORRID PACE IN THE FISCAL FIRST QUARTER REVENUE ROSE 41 AND EARNINGS 45 FOR ITS FISCAL FIRST HALF MICROSOFT SAID IT EARNED 445 MILLION OR 148 A SHARE UP 39 FROM 319 MILLION OR 110 A SHARE REVENUE WAS 176 BILLION UP 39 FROM 126 BILLION 9301150005 930115 HONG KONG'S EMPLOYMENT HONG KONG HONG KONG'S MANUFACTURING SECTOR EMPLOYMENT DECLINED 128 TO 571000 IN SEPTEMBER FROM A YEAR EARLIER REFLECTING THE CONTINUED STRUCTURAL CHANGE IN THE COLONY'S ECONOMY EMPLOYMENT IN HONG KONG'S FINANCING INSURANCE AND REAL ESTATE BUSINESSES MEANWHILE ROSE 64 TO 307500 WHILE THE WHOLESALE RETAIL IMPORT/EXPORT TRADE RESTAURANTS AND HOTELS SECTOR GAINED 3 TO 906900 ACCORDING TO GOVERNMENT STATISTICS THIS SHIFT IN EMPLOYMENT PATTERN REFLECTS HONG KONG'S GROWING ROLE AS A FINANCING AND MARKETING CENTER FOR SOUTHERN CHINA A GOVERNMENT SPOKESMAN SAID 9301150004 930115 RANK ORGANISATION REPORTS 81 DECLINE IN PROFIT FOR FISCAL '92 SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN'S RANK ORGANISATION PLC SAID PRETAX PROFIT DROPPED 81 IN FISCAL 1992 AS RECESSION HIT CONSUMER AND BUSINESS SPENDING THE ENTERTAINMENT AND HOTEL COMPANY EARNED 2301 MILLION 3561 MILLION DOWN FROM 2505 MILLION A YEAR EARLIER SALES SLIPPED TO 21 BILLION FROM 211 BILLION RANK'S PROFIT FOR THE YEAR WHICH ENDED OCT 31 WAS AT THE BOTTOM END OF ANALYSTS' ESTIMATES THE COMPANY LEFT ITS DIVIDEND UNCHANGED AT 31 PENCE A SHARE AS EXPECTED RANK SAID THERE WAS NO OVERALL IMPROVEMENT DURING THE YEAR IN THE MARKETS IN WHICH OPERATES THE COMPANY'S RANK XEROX LTD JOINT VENTURE WITH XEROX CORP STAMFORD CONN CONTRIBUTED 1378 MILLION TO OVERALL PROFIT DOWN 13 HOWEVER THE COMPANY'S FILM AND TELEVISION UNIT SAW EARNINGS RISE 41 TO 274 MILLION FROM 194 MILLION DESPITE LOWER PROFIT FROM ODEON CINEMAS AND RANK'S FILM LABORATORIES AND CONTINUED LOSSES FROM ITS VIDEO DISTRIBUTION AND SCIENTIFIC INSTRUMENTS AND LIGHTING BUSINESSES MICHAEL GIFFORD RANK'S CHIEF EXECUTIVE SOUGHT TO END SPECULATION THAT THE COMPANY WILL SELL THE FILM AND TELEVISION BUSINESS BUT ANALYSTS REMAIN CONVINCED THAT RANK WOULD SELL IT FOR THE RIGHT PRICE RANK'S VACATION AND HOTEL DIVISION POSTED A 22 DECLINE IN OPERATING PROFIT TO 596 MILLION FROM 766 MILLION AS REVENUE SLIPPED 18 TO 4974 MILLION FROM 5066 MILLION THE DECLINE WAS ATTRIBUTED TO THE COMPANY'S BUTLIN'S FAMILY RESORTS ITS HAVENWARNER CAMPER PARKS AND SHEARINGS BUS TOUR BUSINESS BUT HOTEL PROFIT ROSE BY 28 MILLION WITH LONDON HOTELS ACHIEVING RECORD RESULTS THE COMPANY SAID PROFIT AT RANK'S LEISURE DIVISION JUMPED 74 TO 411 MILLION FROM 236 MILLION DRIVEN BY A SIGNIFICANT RISE IN EARNINGS AT ITS HARD ROCK CAFES THE COMPANY SAID ITS CATERING BUSINESS IMPROVED WHILE THE PERFORMANCE OF ITS NIGHTCLUBS WAS FLAT RANK'S SHARE OF PROFIT OF UNIVERSAL STUDIOS FLORIDA A THEME PARK VENTURE WITH MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC ROSE TO MORE THAN 10 MILLION THE COMPANY SAID 9301150003 930115 ECONOMY CLINTON AIDE SAYS HEALTHCARE SAVINGS SHOULD BE USED TO EXPAND COVERAGE BY HILARY STOUT AND ROSE GUTFIELD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DONNA SHALALA BILL CLINTON'S CHOICE FOR SECRETARY OF HEALTH AND HUMAN SERVICES SAID THAT SAVINGS FROM MEDICARE AND MEDICAID SHOULD BE USED TO EXPAND HEALTH COVERAGE TO ALL AMERICANS NOT TO REDUCE THE DEFICIT THE PRESIDENTELECT'S POSITION IS THAT WE WILL TAKE THOSE RESOURCES AND USE THEM TO EXPAND COVERAGE SAID THE 51YEAROLD CHANCELLOR OF THE UNIVERSITY OF WISCONSIN AT MADISON HER COMMENT CAME IN RESPONSE TO A QUESTION DURING A SENATE FINANCE COMMITTEE HEARING ON HER NOMINATION MR CLINTON'S ECONOMIC AND HEALTHPOLICY ADVISERS HAVE BEEN DEBATING HOW TO SPEND WHATEVER SAVINGS CAN BE SQUEEZED OUT OF MEDICARE AND MEDICAID THE FINANCE COMMITTEE POSED THE SAME QUESTION EARLIER THIS WEEK TO LLOYD BENTSEN ITS FORMER CHAIRMAN AND NOW MR CLINTON'S NOMINEE FOR TREASURY SECRETARY BUT MR BENTSEN WAS NONCOMMITTAL ON THE MATTER HOWEVER HE DID NOTE WHAT YOU ARE TRYING TO DO IS FIRST IMPRESS THE WORLD THAT YOU ARE GETTING THAT DEFICIT DOWN IN A LARGELY FRIENDLY SESSION MS SHALALA STRESSED THAT MR CLINTON IS COMMITTED TO SENDING CONGRESS A BROAD HEALTHCARE REFORM PROPOSAL BUT SHE DECLINED TO SAY WHETHER HE IS LIKELY TO MEET HIS PLEDGE TO DO SO IN THE FIRST 100 DAYS OF HIS ADMINISTRATION IT WILL BE A REASONABLE PERIOD OF TIME SHE SAID SHE SAID THE PLAN WILL INCLUDE A NATIONAL BUDGET FOR BOTH PUBLIC AND PRIVATE HEALTHCARE EXPENDITURES AS MR CLINTON PROMISED DURING HIS CAMPAIGN IN ADDITION MS SHALALA REITERATED MR CLINTON'S PLEDGE TO LIFT THE BANS ON ABORTION COUNSELING AT FEDERALLY FINANCED CLINICS AND ON FEDERAL FINANCING FOR RESEARCH USING TISSUE FROM ABORTED FETUSES AND SHE ALSO CALLED FOR MORE FEDERAL RESOURCES TO BE DEVOTED TO FIGHTING AIDS THE FINANCE COMMITTEE IS PLANNING TO VOTE ON MS SHALALA'S NOMINATION ON TUESDAY SEPARATELY REP MIKE ESPY D MISS MR CLINTON'S NOMINEE FOR AGRICULTURE SECRETARY WAS FORCED AT HIS CONFIRMATION HEARING TO EXPLAIN SOME OF HIS CAMPAIGNSPENDING FILINGS WITH THE FEDERAL ELECTION COMMISSION WHICH MADE IT LOOK AS THOUGH HE RECEIVED IMPROPER PAYMENTS FROM HIS CAMPAIGN AND WAS REIMBURSED TWICE FOR SOME EXPENSES HE SAID THE PROBLEM INVOLVED IMPROPER REPORTING RATHER THAN ANY IMPROPER PAYMENTS AND THAT THE JUSTICE DEPARTMENT IS SATISFIED WITH HIS EXPLANATION MR ESPY ALSO ACKNOWLEDGED IN RESPONSE TO QUESTIONS THAT A PARTTIME ADVISER ON HIS CONGRESSIONAL STAFF ALSO HAS BEEN RUNNING AN AGRICULTURECONSULTING SERVICE AND HELD AN INTEREST IN A FARM HE SAID HE INTENDS TO OFFER THE EMPLOYEE A JOB AT THE AGRICULTURE DEPARTMENT IN WASHINGTON BUT WILL INSIST THAT HE SELL THE CONSULTING SERVICE FIRST MR ESPY SAID HE BELIEVES THE INDIVIDUAL ALSO HAS SHED THE FARM INTEREST ON POLICY MATTERS MR ESPY EMPHASIZED THE NEED TO BOLSTER RURAL DEVELOPMENT AND COMBAT HUNGER HE STRESSED BOTH TRADITIONAL PROGRAMS SUCH AS FOOD STAMPS AND THE SCHOOL LUNCH PROGRAM AND LESS TRADITIONAL APPROACHES SUCH AS EMPOWERMENT PROGRAMS THAT STRESS SELFHELP HE PLEDGED TO STREAMLINE AGRICULTURE DEPARTMENT FIELD OFFICES IN A FARMERFRIENDLY MANNER AND TO ATTACK WASTE AT THE WASHINGTON HEADQUARTERS AS WELL THE SENATE AGRICULTURE COMMITTEE IS EXPECTED TO VOTE TO CONFIRM THE NOMINATION NEXT WEEK MEANWHILE THE SENATE FOREIGN RELATIONS COMMITTEE ENDED ITS QUESTIONING OF SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER BUT PUT OFF ITS CONFIRMATION VOTE UNTIL TUESDAY HOWEVER COMMENTS FROM SEVERAL SENATORS MADE CLEAR THE NOMINEE WILL BE APPROVED WITHOUT DIFFICULTY ONLY SEN JESSE HELMS THE CONSERVATIVE REPUBLICAN FROM NORTH CAROLINA SHOWED MUCH DISPLEASURE HE NOTED THAT MR CHRISTOPHER'S EARLIER TOUR IN THE CARTER STATE DEPARTMENT WAS A PERIOD IN US FOREIGN POLICY HISTORY THAT NOT MANY IF ANY AMERICANS REGARD AS OUR COUNTRY'S FINEST HOUR BUT SEN HELMS SAID HE EXPECTS THE NOMINATION TO BE APPROVED EASILY SEN HELMS DID QUESTION MR CHRISTOPHER EXTENSIVELY ABOUT POSSIBLE FUTURE CONFLICTS BETWEEN HIS OFFICIAL BUSINESS AND THE FINANCIAL INTERESTS OF HIS FORMER LAW FIRM O'MELVENY & MYERS IN LOS ANGELES THE FIRM REPRESENTS SUCH FOREIGN CLIENTS AS TOYOTA MOTOR CORP AND JAPAN AIR LINES MR CHRISTOPHER WHO HAS DISCLOSED IN FILINGS WITH THE OFFICE OF GOVERNMENT ETHICS THAT HE EARNED 989400 LAST YEAR FROM THE 550LAWYER FIRM PROMISED HE WON'T PARTICIPATE IN ANY DECISIONS THAT COULD BENEFIT THE FIRM'S MAIN CLIENTS ROBERT KEATLEY CONTRIBUTED TO THIS ARTICLE 9301150002 930115 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC FIRM SAYS 4THQUARTER NET WON'T MATCH EXPECTATIONS ARMSTRONG WORLD INDUSTRIES INC SAID FOURTHQUARTER EARNINGS WOULD BE BELOW EXPECTATIONS AND THAT THE COMPANY WOULD TAKE 207 MILLION IN VARIOUS CHARGES IN THE QUARTER THE LANCASTER PA MAKER OF FLOOR COVERINGS AND OTHER HOME FURNISHINGS SAID IT WOULD TAKE AN AFTERTAX CHARGE OF 185 MILLION OR 484 A SHARE FOR A CUMULATIVE ADJUSTMENT IN RETIREE HEALTH BENEFIT LIABILITIES AND FOR AN INCOME TAX ADJUSTMENT THE ACCOUNTING ADJUSTMENTS ARE RETROACTIVE TO JAN 1 1992 ARMSTRONG ALSO SAID IT WOULD TAKE A 24 MILLION OR 64 CENTS A SHARE AFTERTAX RESTRUCTURING CHARGE FOR CLOSING A CEILING PRODUCTS PLANT IN BELGIUM ARMSTRONG ALSO SAID FOURTHQUARTER OPERATING EARNINGS LIKELY WOULD FALL BELOW ANALYSTS' EXPECTATIONS OF 102 MILLION OR 28 CENTS A SHARE THE COMPANY REPORTED A LOSS OF 357 MILLION OR 135 A SHARE THROUGH THE FIRST NINE MONTHS OF 1992 IN LATE NEW YORK STOCK EXCHANGE TRADING ARMSTRONG WAS OFF 1125 AT 30375 9301150001 930115 CORRECTIONS & AMPLIFICATIONS THE ABREAST OF THE MARKET COLUMN YESTERDAY INCORRECTLY NAMED PFIZER INC AS ONE OF THE 30 STOCKS THAT MAKE UP THE DOW JONES INDUSTRIAL AVERAGE PIONEER STANDARD ELECTRONICS INC'S 50OWNED AFFILIATE PIONEER/TECHNOLOGIES GROUP INC CONTRIBUTED 658000 IN EQUITY EARNINGS FOR THE THIRD QUARTER ENDED DEC 31 UP FROM 94000 A YEAR EARLIER FOR THE NINE MONTHS THE AFFILIATE'S EQUITY CONTRIBUTION WAS 2 MILLION UP FROM 127000 A YEAR EARLIER AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE EQUITY CONTRIBUTION FOR THE QUARTER WAS 2 MILLION UP 127000 FROM A YEAR EARLIER 9301140179 930114 CHEDDAR LOVERS MAY TAKE A SLICE OF THESE FUTURES BY WARREN GETLER AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CHEESE FUTURES ANYONE IN AN EFFORT TO FIND A NEW CASH COW THE COFFEE SUGAR & COCOA EXCHANGE IS PREPARING TO SERVE UP A DUET OF EXOTIC NEW HEDGES AGAINST FINANCIAL RISK CHEDDAR CHEESE AND POWDEREDMILK FUTURES APPROVED BY THE EXCHANGE'S DIRECTORS YESTERDAY THE PROPOSAL NOW GOES TO THE COMMODITY FUTURES TRADING COMMISSION IN WASHINGTON IF APPROVED BY THE COMMISSION TRADING IN CHEESE AND NONFAT DRYMILK FUTURES CONTRACTS WOULD BEGIN AROUND JUNE SAYS JAMES J BOWE SENIOR VICE PRESIDENT OF THE EXCHANGE THE DAIRY AND FOOD INDUSTRIES SEEM ENTHUSIASTIC THEY WOULD USE THE FUTURES CONTRACTS WHICH ARE AGREEMENTS TO BUY OR SELL A COMMODITY AT A FIXED PRICE AT A CERTAIN DATE TO PROTECT THEMSELVES AGAINST FLUCTUATING PRICES PHILIP MORRIS CO'S KRAFT GENERAL FOODS UNIT CONTROLS ROUGHLY 40 OF THE CHEESE SOLD IN SUPERMARKET DAIRY CASES AND SAYS IT SUPPORTS THE MOVE SO TOO DO THE ORGANIZATIONS THAT REPRESENT DAIRY COOPERATIVES THE INDUSTRY IS EXTREMELY EXCITED ABOUT HAVING THIS KIND OF ALTERNATIVE TO THE CASH MARKET SAYS E LINWOOD TIPTON PRESIDENT OF THE INTERNATIONAL DAIRY FOOD ASSOCIATION EACH FUTURES CONTRACT WILL BE FOR 40000 POUNDS OF CHEESE IN 40POUND BLOCKS THERE IS NO PROVISION FOR CASH SETTLEMENT SO SOMEONE WHO OWNS A CONTRACT WILL EITHER HAVE TO TAKE DELIVERY OF THE CHEESE AT WAREHOUSES THROUGHOUT THE COUNTRY OR PURCHASE AN OFFSETTING CONTRACT CERTAINLY THE COFFEE SUGAR & COCOA EXCHANGE IS EAGER TO CREATE PRODUCTS ON WHICH ITS TRADERS CAN SPECULATE TRADING VOLUME ON THE EXCHANGE HAS BEEN FALLING FOR THE PAST TWO YEARS LAST YEAR VOLUME FELL 24 FROM 1991 LEVELS DESPITE ROBUST ACTION IN THE COFFEE PITS BUT OTHERS WONDER WHETHER THE NEW FUTURES CONTRACTS WILL LAST THE EXCHANGE HAS HAD SOME REAL DOGS IN TERMS OF MARKET PERFORMANCE SAYS WILLIAM O'NEILL SENIOR FUTURES STRATEGIST AT MERRILL LYNCH I HAVEN'T THE FAINTEST IDEA HOW THESE PRODUCTS WILL FARE I DON'T EVEN LIKE CHEESE THE NEW CONTRACTS MIGHT ALSO POSE A CHALLENGE TO TRADERS SCHOOLED IN THE MORE GLAMOROUS COMMODITIES SUCH AS GOLD OIL AND TREASURY BONDS FEW KNOW SUCH COW FUNDAMENTALS AS FLUSH THE BIG SURGE OF MILK PRODUCED FROM COWS EATING SPRING GRASS AVERAGE COW PRODUCTION ROUGHLY 15000 POUNDS OF MILK ANNUALLY OR MILK PRICE REGULATIONS SO ANTIQUATED AND COMPLEX THAT THEY FILL THREE VOLUMES OF THE CODE OF FEDERAL REGULATIONS THIS IS GOING TO REQUIRE A BIT OF EDUCATION FOR THE INDUSTRY AS A WHOLE THE INTERNATIONAL DAIRY ASSOCIATION'S MR TIPTON SAYS ATTEMPTS BY OTHER COMMODITY EXCHANGES TO REVISIT THEIR AGRICULTURAL ROOTS HAVEN'T FARED ALL THAT WELL THE CHICAGO MERCANTILE EXCHANGE WHOSE CATTLE AND HOG PITS WERE ECLIPSED BY FINANCIAL FUTURES MORE THAN A DECADE AGO RESURRECTED A BROILER CONTRACT WITH MUCH FANFARE IN FEBRUARY 1991 IT DIDN'T FLY IN PART BECAUSE SOME OF THE BIGGEST COMPANIES IN THE MARKET TYSON FOODS INC AND MCDONALD'S CORP WERE RELUCTANT TO USE IT CHICAGO BOARD OF TRADE OFFICIALS SHELVED THE IDEA OF LAUNCHING A CHEESE FUTURES CONTRACTS ABOUT FIVE YEARS AGO BECAUSE THEY THOUGHT PRICES WERE TOO DULL SINCE 1989 HOWEVER MILK PRICES HAVE BEEN ON A ROLLER COASTER AND INTEREST HAS GROWN AMONG POTENTIAL HEDGERS THE VOLATILITY IN DAIRY PRODUCT PRICES IS A RESULT OF THE FEDERAL GOVERNMENT'S DECISION IN THE 1980S TO CUT ITS SUPPORT PRICE FOR MILK BY ABOUT 25 THAT REDUCED THE INCENTIVE FOR FARMERS TO GENERATE THE EXCESS SUPPLY THAT THE GOVERNMENT IS OBLIGED TO PURCHASE TO SUPPORT PRICES WITHOUT THAT SURPLUS MILK PRICES ARE MORE SENSITIVE TO MARKET DEVELOPMENTS AND IF INTERNATIONAL NEGOTIATIONS TO REDUCE FARM TRADE BARRIERS ARE SUCCESSFUL PRICE VOLATILITY WOULD PROBABLY INCREASE 9301140178 930114 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 2 15/16 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 313 30 TO 89 DAYS 317 90 TO 119 DAYS 320 120 TO 149 DAYS 323 150 TO 179 DAYS 327 180 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 321 30 DAYS 323 60 DAYS 325 90 DAYS CERTIFICATES OF DEPOSIT 277 ONE MONTH 282 TWO MONTHS 286 THREE MONTHS 295 SIX MONTHS 322 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 320 THREE MONTHS 332 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 311 90 DAYS 315 120 DAYS 318 150 DAYS 320 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 15/16 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 7 GERMANY 950 JAPAN 450 SWITZERLAND 788 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 785 60 DAYS 793 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 783 60 DAYS 792 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 555 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301140177 930114 WHO'S NEWS GLYCOMED INC GLYCOMED INC ALAMEDA CALIF JOHN GROOM PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ATHENA NEUROSCIENCES INC WAS ELECTED TO THE BOARD OF THIS BIOTECHNOLOGY COMPANY 9301140176 930114 WHO'S NEWS HOME DEPOT INC HOME DEPOT INC ATLANTA DONALD R KEOUGH PRESIDENT AND CHIEF OPERATING OFFICER OF COCACOLA CO AND CHAIRMAN OF COCACOLA ENTERPRISES INC WAS ELECTED A DIRECTOR OF THIS HOMEIMPROVEMENT RETAIL CHAIN RAISING BOARD MEMBERSHIP TO 11 9301140175 930114 COMPOUND YIELD FOR SEVEN DAYS FALLS TO 287 BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS FLOODED MONEYMARKET MUTUAL FUNDS WITH MORE THAN 28 BILLION IN THE LATEST WEEK WHILE YIELDS FELL REVERSING SEASONAL YEAREND MOVES THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS SLID TO 287 FROM 296 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT YIELDS ON TAXFREE FUNDS DROPPED EVEN MORE SHARPLY PLUNGING TO 195 FROM 283 THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 271 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 283 FOR SOMEONE PAYING 31 IN TAXES IT'S THE FIRST TIME IN MONTHS THAT TAXABLEEQUIVALENT YIELDS ON TAXFREE FUNDS HAVEN'T BEAT YIELDS ON TAXABLE FUNDS ASSETS OF 565 TAXABLE FUNDS JUMPED BY 217 BILLION TO 4812 BILLION SAID THE ASHLAND MASS NEWSLETTER FORMERLY CALLED IBC/DONOGHUE'S MONEY FUND REPORT MOST OF THE INFLOW 184 BILLION WENT INTO FUNDS OPEN ONLY TO INSTITUTIONS TAXABLE MONEYFUND ASSETS TYPICALLY FALL AT YEAR END AND YIELDS RISE IN RESPONSE TO REDUCED DEMAND FOR SHORTTERM SECURITIES AS INSTITUTIONAL INVESTORS MOVE TO HAVE MORE CASH ON THEIR BALANCE SHEETS THE CASH TYPICALLY FLOWS BACK IN AND YIELDS SLIP IN THE FIRST WEEKS OF THE NEW YEAR YIELDS ON TAXABLE FUNDS ARE NOW BACK TO LATEDECEMBER LEVELS COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS INVESTORS POURED 67 BILLION INTO TAXFREE MONEY FUNDS RAISING ASSETS OF 307 FUNDS TO 1041 BILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID MUCH OF THE HUGE INFLOW INTO TAXEXEMPTS IS TEMPORARY MONEY FROM REDEMPTIONS OF LONGTERM MUNICIPAL BONDS THIS MONTH WHEN ASSETS FALL HE PREDICTED YIELDS WILL GO BACK UP A BIT AVERAGE MATURITY OF THE TAXFREE FUNDS' INVESTMENTS SHORTENED BY THREE DAYS TO 55 DAYS A SIGN THAT PORTFOLIO MANAGERS EXPECT YIELDS TO RISE IN COMING WEEKS AVERAGE MATURITY OF THE TAXABLE FUNDS WHOSE INVESTMENTS INCLUDE TREASURY BILLS AND COMMERCIAL PAPER SHORTTERM CORPORATE IOUS LENGTHENED BY TWO DAYS TO 56 DAYS PORTFOLIO MANAGERS SHORTENED AVERAGE MATURITIES AT YEAR END IN PART TO MEET LIQUIDITY REQUIREMENTS OF BIG OUTFLOWS OF CASH THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS FELL TO 283 FROM 292 THE AVERAGE 30DAY SIMPLE YIELD EDGED UP TO 286 FROM 285 AND THE AVERAGE 30DAY COMPOUND YIELD ROSE TO 290 FROM 289 REFLECTING INCREASES OF PREVIOUS WEEKS 9301140173 930114 INTERNATIONAL NOVEMBER TOURISM IN SPAIN MADRID THE NUMBER OF TOURISTS VISITING SPAIN DROPPED 55 IN NOVEMBER 1992 BUT CLIMBED 35 IN THE FIRST 11 MONTHS OF THE YEAR THE GOVERNMENT SAID TOURISM REVENUE IN NOVEMBER ROSE TO 15660 BILLION PESETAS 135 BILLION UP 11 FROM A YEAR EARLIER WHILE TOURISM EARNINGS FOR THE FIRST 11 MONTHS JUMPED 79 TO 201 TRILLION PESETAS TOURISM ACCOUNTS FOR MORE THAN 8 OF SPAIN'S ANNUAL GROSS DOMESTIC PRODUCT ABOUT 26 MILLION VISITORS ENTERED SPAIN IN NOVEMBER BRINGING TO 517 MILLION THE NUMBER OF TOURISTS TO VISIT SPAIN IN THE FIRST 11 MONTHS OF 1992 9301140172 930114 WHO'S NEWS TELXON CORP TELXON CORP AKRON OHIO D MICHAEL GRIMES 52 YEARS OLD WAS NAMED PRESIDENT OF THIS PORTABLE COMPUTER CONCERN'S NEW RETAIL TECHNOLOGY GROUP UNIT MR GRIMES WAS PREVIOUSLY SENIOR VICE PRESIDENT OF STRATEGIC PLANNING AND BUSINESS DEVELOPMENT THAT POSITION WON'T BE FILLED ROBERT MYERSON WHO WAS NAMED CHIEF EXECUTIVE OFFICER LAST OCTOBER WILL ASSUME RESPONSIBILITY FOR STRATEGIC PLANNING AND BUSINESS DEVELOPMENT STEVEN GALVANONI 42 PREVIOUSLY AN INDEPENDENT CONSULTANT WILL BE SENIOR VICE PRESIDENT OF SALES AND MARKETING FOR THE UNIT 9301140171 930114 WHO'S NEWS CERIDIAN CORP CERIDIAN CORP MINNEAPOLIS RONALD L TURNER WAS NAMED PRESIDENT OF THE COMPUTING DEVICES INTERNATIONAL UNIT OF THIS INFORMATION MANAGEMENT COMPANY MR TURNER 45 YEARS OLD SUCCEEDS ROGER HANDBERG 58 WHO WILL CONTINUE AS EXECUTIVE VICE PRESIDENT OF CERIDIAN MR TURNER WHO WILL REPORT TO CHAIRMAN LAWRENCE PERLMAN FORMERLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GECMARCONI ELECTRONIC SYSTEMS CORP 9301140170 930114 INTERNATIONAL VW CUTS SUMS FOR INVESTMENTS IN 5YEAR PROGRAM BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN SIGNALING A SWERVE IN STRATEGY AT EUROPE'S LARGEST CAR MAKER VOLKSWAGEN AG SLOWED ITS MASSIVE INVESTMENT PROGRAM AND ACCORDING TO ONE REPORT ACCELERATED PLANS TO SHED THOUSANDS OF WORKERS VW'S SUPERVISORY BOARD APPROVED A MASSIVE 758 BILLION MARK 4670 BILLION INVESTMENT PROGRAM FOR THE NEXT FIVE YEARS INCLUDING 453 BILLION MARKS FOR ITS CORE AUTOMOTIVE BUSINESS WHILE THIS IS A HEFTY SUM IT MARKS A DROP FROM PREVIOUS PLANS TO SPEND 51 BILLION MARKS OVER FIVE YEARS REUTERS NEWS SERVICE QUOTED VW OFFICIALS AS CONFIRMING THAT THE GROUP HAS SET A BROAD TARGET OF REDUCING ITS WORK FORCE BY 30000 OVER THE NEXT TWO YEARS THE CUTS WOULD BE SPREAD WORLDWIDE ACROSS THE COMPANY'S UNITS AUDI SEAT SKODA AND VOLKSWAGEN AND WOULD MARK A SHARP INCREASE FROM PLANS ANNOUNCED EARLIER TO SHED ONLY 12500 JOBS HOWEVER CALLING THE REPORT OF 30000 LAYOFFS COMPLETE SPECULATION A COMPANY SPOKESMAN SAID VW WOULDN'T RESORT TO CUTS BEYOND THE 12500 ALREADY PROPOSED UNLESS FORCED TO DO SO NEWS OF THE CHANGES DISAPPOINTED INDUSTRY ANALYSTS WHO EXPECTED AN EVEN MORE SWEEPING UPHEAVAL PARTICULARLY IN INVESTMENTS WHILE THE NEW FIVEYEAR PLAN STILL ENVISIONS VW'S SPENDING AN AVERAGE NINE BILLION MARKS ANNUALLY A COMPANY SPOKESMAN SAID SPENDING WOULD FALL BY AN UNSPECIFIED AMOUNT FAR BELOW THAT LEVEL NEXT YEAR HE SAID SPENDING WOULD INCREASE IN LATER YEARS OF THE PROGRAM IN ORDER TO COMPENSATE WE'RE NOT CUTTING BACK ON SPENDING THE OFFICIAL SAID WE'RE JUST POSTPONING THE ISSUE IS A SENSITIVE ONE VW'S NEW CHAIRMAN FERDINAND PIECH WHO TOOK OVER FROM CARL HAHN AT THE BEGINNING OF THIS MONTH HAS VOWED TO BOLSTER THE COMPANY'S SAGGING PROFITABILITY MOST EXPERTS PREDICTED ONE OF MR PIECH'S FIRST MOVES WOULD BE TO TRIM A MASSIVE GLOBAL INVESTMENT PROGRAM A LEGACY OF MR HAHN BUT PUSHING THE BRAKES ON PROJECTS THAT ARE ALREADY IN FULL SWING IS DIFFICULT FOR INSTANCE VW HAS SAID IT WOULD SLOW SPENDING ON A NEW PLANT IN EASTERN GERMANY RATHER THAN POUR 42 BILLION MARKS INTO THE PLANT BY 1994 AS WAS ONCE ENVISIONED THE COMPANY NOW SAYS IT WILL TAKE UNTIL 1997 TO SPEND THAT AMOUNT THE MOST PRESSING ISSUE FOR VOLKSWAGEN REMAINS ITS PRODUCTION COSTS IN GERMANY WHICH DRAG DOWN PROFITABILITY FOR THE WHOLE COMPANY EVEN AS IT BREAKS SALES RECORDS ACROSS EUROPE WHILE ANALYSTS APPLAUDED VW'S PLANS TO EXPAND STAFF REDUCTIONS THEY SAID SPREADING THE CUTS TO FACTORIES AROUND THE WORLD MADE LITTLE SENSE THEY NEED TO CUT WORKERS IN GERMANY SAID ONE ANALYST BUT THEY HAD TO SPREAD IT AROUND TO GET THE VARIOUS SIDES TO AGREE VW OFFICIALS SPEAKING AFTER YESTERDAY'S SUPERVISORY BOARD MEETING SAID THEY EXPECT CAR SALES TO DECLINE AN OVERALL 10 ACROSS WESTERN EUROPE THIS YEAR COMPARED WITH 1992 VOLKSWAGEN IS WESTERN EUROPE'S TOPSELLING BRAND WITH 175 OF THE MARKET YESTERDAY'S MEETING SPARKED CONSIDERABLE INTEREST BECAUSE IT WAS MR PIECH'S FIRST AS CHAIRMAN WITH A REPUTATION AS A HARDNOSED COSTCUTTER HE MADE CLEAR HIS FOCUS IMPROVING VW'S BOTTOM LINE BUT ANALYSTS SAID MR PIECH MAY FIND IT HARDER THAN HE EXPECTS TO TURN AROUND THE GIANT GROUP IT'S MUCH EASIER TO ANNOUNCE GRANDIOSE PLANS THAN IT IS TO ACTUALLY IMPLEMENT THEM SAID DAGMAR BOTTENBRUCH AN AUTO ANALYST AT CREDIT SUISSE FIRST BOSTON IN MILAN THE EXPERIENCES OF FIAT AND GM HAVE SHOWN US THAT ANALYSTS SAY YESTERDAY'S MEETING WAS JUST THE FIRST ROUND IN WHAT IS LIKELY TO BE A LONG BATTLE VW IS 20OWNED BY THE GOVERNMENT OF THE STATE OF LOWER SAXONY WHERE ALL OF ITS GERMAN FACTORIES ARE LOCATED GETTING STATE OFFICIALS AND UNION LEADERS WHO TOGETHER HOLD HALF THE SEATS ON VW'S 20MEMBER SUPERVISORY BOARD TO AGREE ON DRASTIC LABOR CUTBACKS WILL LIKELY BE DIFFICULT WHATEVER MR PIECH DOES HOWEVER VOLKSWAGEN ENTERS A DIFFICULT PERIOD THE COMPANY'S SALES AND PROFITS ARE EXPECTED TO PLUNGE THIS YEAR SOME ANALYSTS EVEN EXPECT VW TO REPORT A LOSS 9301140169 930114 JAPAN FIRMS WIN CZECH ORDER TOKYO JAPAN'S MITSUBISHI HEAVY INDUSTRIES LTD AND MITSUBISHI CORP SAID THEY JOINTLY WON AN ORDER TO BUILD FIVE DESULFURIZATION UNITS AT A POWER STATION IN CZECH REPUBLIC UNDER THE FULL TURNKEY CONTRACT WITH THE CZECH NATIONAL POWER AGENCY THE FACILITIES WILL BE INSTALLED AT THE SECOND PRUNEROV POWER STATION LOCATED 100 KILOMETERS 62 MILES NORTHWEST OF PRAGUE BY JULY 1996 THE COST OF THE PROJECT IS ABOUT 17 BILLION YEN 1357 MILLION AND WILL BE FINANCED THROUGH A WORLD BANK LOAN THE COMPANIES SAID 9301140168 930114 WHO'S NEWS WOOLWORTH CORP WOOLWORTH CORP NEW YORK J CARTER BACOT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BANK OF NEW YORK CO WAS NAMED A DIRECTOR OF THIS RETAILING CONCERN INCREASING BOARD MEMBERSHIP TO 13 THE COMPANY ALSO NAMED GARY M BAHLER 41YEAROLD SECRETARY AND DEPUTY GENERAL COUNSEL TO BE VICE PRESIDENT AND GENERAL COUNSEL EFFECTIVE FEB 1 MR BAHLER SUCCEEDS TED M ANNENBERG WHO IS RETIRING 9301140167 930114 WHO'S NEWS ALFIN INC ALFIN INC NEW YORK STANLEY KOHLENBERG WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS IMPORTED FRAGRANCES COMPANY HE SUCCEEDS IRWIN ALFIN 63 YEARS OLD WHO RESIGNED AS CHAIRMAN FOR PERSONAL REASONS MR KOHLENBERG 60 SERVED AS PRESIDENT AND CHIEF EXECUTIVE FROM APRIL 1989 UNTIL HIS RETIREMENT IN JUNE 1991 HE CONTINUED AS A DIRECTOR AND HAS BEEN AN INTERNATIONAL GAMING CONSULTANT IN NOVEMBER FINE FRAGRANCES DISTRIBUTION INC A MONTREAL UNIT OF PP&CU LTD PURCHASED A CONTROLLING STAKE IN THE COMPANY UNDER THE PURCHASE AGREEMENT EACH ALFIN DIRECTOR RESIGNED EXCEPT MR ALFIN WHO AGREED TO STEP DOWN AS CHIEF EXECUTIVE BUT WAS TO CONTINUE AS CHAIRMAN 9301140166 930114 WHO'S NEWS TOYOTA MOTOR CORP TOYOTA MOTOR CORP TOKYO THIS AUTO MAKER'S UNIT TOYOTA MOTOR SALES USA TORRANCE CALIF NAMED JOHN MCGOVERN SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION MR MCGOVERN 52 YEARS OLD FORMERLY GROUP VICE PRESIDENT OF TOYOTA INDUSTRIAL EQUIPMENT SUCCEEDS ROBERT BEST 61 WHO WILL BE A GROUP VICE PRESIDENT AND SENIOR ADVISER DOUGLAS WEST 47 FORMERLY VICE PRESIDENT AND GENERAL COUNSELPRODUCT LAW WAS NAMED VICE PRESIDENT OF EXPORT AND LOGISTICS OPERATIONS SUCCEEDING HIROSHI IMAI 60 WHO WAS APPOINTED PRESIDENT OF TOYOTA VEHICLE PROCESSORS 9301140165 930114 INTERNATIONAL NORWAY TRADE SURPLUS FELL 31 STOCKHOLM NORWAY'S TRADE SURPLUS FELL 31 IN 1992 FROM A YEAR EARLIER DESPITE AN INCREASE IN CRUDE OIL EXPORTS THE GOVERNMENT'S STATISTICS AGENCY SAID NORWAY'S TRADE SURPLUS IN 1992 AMOUNTED TO 5127 BILLION NORWEGIAN KRONER 737 BILLION DOWN FROM 5292 BILLION KRONER A YEAR EARLIER EXPORTS IN 1992 ROSE 02 TO 20665 BILLION KRONER FROM 20627 BILLION KRONER IN 1991 BUT IMPORTS GREW 13 TO 15536 BILLION KRONER IN 1992 FROM 15335 BILLION KRONER A YEAR EARLIER THE GROWTH IN EXPORTS WAS WHOLLY ATTRIBUTED TO INCREASED REVENUE FROM SALES OF CRUDE OIL WHICH GREW 27 TO 8258 BILLION KRONER IN THE YEAR FROM 8040 BILLION KRONER A YEAR EARLIER IN VOLUME SALES OF CRUDE OIL ROSE 13 IN THE YEAR BUT THE VOLUME GROWTH WAS OFFSET BY PRICES THAT IN 1992 WERE ON AVERAGE 85 BELOW LEVELS A YEAR EARLIER THE AGENCY SAID SALES OF NATURAL GAS HOWEVER WERE DOWN 28 AT 1586 BILLION KRONER IN 1992 FROM 1631 BILLION KRONER A YEAR EARLIER THE AGENCY SAID EXCLUDING OIL AND GAS EXPORTS NORWAY SHOWED A TRADE DEFICIT OF 4717 BILLION KRONER IN 1992 WIDENING FROM A DEFICIT OF 4378 BILLION KRONER A YEAR EARLIER 9301140163 930114 WHO'S NEWS ALEX BROWN INC ALEX BROWN INC BALTIMORE THE SECURITIES COMPANY AND GLENMEDE CORP SAID THEY NAMED MICHAEL D HANKIN 36 YEARS OLD EXECUTIVE VICE PRESIDENT OF THEIR NEW JOINT VENTURE BROWN ADVISORY & TRUST CO OF MARYLAND MR HANKIN WAS ALSO NAMED PRESIDENT OF THE NEW VENTURE'S HOLDING COMPANY BROWN & GLENMEDE HOLDINGS INC THE NEW VENTURE OFFERS INVESTMENT ADVICE AND TRUST SERVICES TO WEALTHY INDIVIDUALS AND INSTITUTIONS MR HANKIN WHOSE APPOINTMENT IS EFFECTIVE FEB 1 IS CURRENTLY A PARTNER AT PIPER & MARBURY A BALTIMORE LAW FIRM GLENMEDE IS A PHILADELPHIABASED TRUST AND INVESTMENT SERVICES CONCERN 9301140162 930114 NEW YORK STOCK EXCHANGE SEAT NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 500000 UNCHANGED FROM THE PREVIOUS SALE ON MONDAY SEATS ARE CURRENTLY QUOTED AT 455000 BID AND 575000 OFFERED 9301140161 930114 IT TOOK PULL TO GET AN INVITE TO MARCH IN CLINTON'S PARADE IRENE THE DONKEY HAD THAT SO DID VERMONT CHILDREN SOFT SPOT FOR ELVIS PRESLEY BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IRENE IS A DONKEY THE DEMOCRATIC DONKEY AND SHE IS GOING TO BE IN BILL CLINTON'S ECLECTIC INAUGURAL PARADE NEXT WEDNESDAY WILLIE KIRKDR KIRK FOR NO PARTICULAR REASON IS IRENE'S OWNER TO THE EXTENT THAT A MAN CAN OWN A DONKEY THEY LIVE ON A FARM THAT HAS BEEN IN THE KIRK FAMILY SINCE 1851 IRENE WAS BORN IN 1975 SAYS DR KIRK AND SHE HAS BEEN WORKING FOR DEMOCRATS SINCE SHE WAS ONE YEAR OLD IN FACT IRENE IS SUCH A GOOD DEMOCRAT THAT SHE WENT TO THE POLLS NOV 3 TO VOTE FOR GOV CLINTON HER HANDLERS MARCHED HER RIGHT UP TO THE FRONT DOOR OF THE MACON COUNTY ALA COURTHOUSE WHERE SHE WAS GREETED BY SECRETARY OF STATE BILLY JOE CAMP AND A TV CREW MR CAMP RULED HER INELIGIBLE TO VOTE NOT BECAUSE SHE'S AN ASS SAYS DR KIRK BUT BECAUSE SHE'S TOO YOUNG IRENE MAY TRY AGAIN WHEN SHE IS 18 ON THE BIG DAY IRENE WILL BE IN A TRAILER BEHIND DR KIRK'S RED WHITE AND BLUE CHEVY BLAZER JOINING 125 PARADE UNITS INCLUDING AN ELVIS PRESLEY FLOAT SOME COLORADANS WHO WILL PERFORM A PRECISION DRILL WITH LAWN CHAIRS ON THE SIDELINES AND A GROUP OF FOLKDANCING CHILDREN FROM VERMONT THE AFFAIR IS BEING BILLED THE FUNKIEST DOWNHOME INAUGURAL PARADE IN HISTORY HOW DID ALL THESE PEOPLE AND ANIMAL GET TO BE IN THE PARADE IT WASN'T EASY MORE THAN 500 UNITS APPLIED AND NEARLY 400 WERE REJECTED PERSISTENCE PAYS DR KIRK DROVE TO WASHINGTON AND VISITED THE INAUGURAL HEADQUARTERS AT THE NAVY YARD TO PRESS HIS CASE IT DIDN'T HURT THAT IRENE HAD MET BOTH GOV AND MRS CLINTON DURING THE RECENT CAMPAIGN IT DIDN'T HURT THAT IRENE'S BIRTH CERTIFICATE LISTS ALABAMA'S DEMOCRATIC SEN HOWELL HEFLIN AS HER FATHER DR KIRK SAYS THAT'S A JOKE BUT YOU KNEW THAT OBVIOUSLY IRENE HAS FRIENDS IN HIGH PLACES CUTE LETTERS SEEM TO WORK TOO FOLKIDS OF VERMONT IS A GROUP OF 10 TO 14YEAROLDS WHO PERFORM TRADITIONAL 19THCENTURY SQUARE DANCES AND TAKE THEIR SHOW ABROAD TWO WEEKS EACH YEAR THEY WILL BE IN THE PARADE TOO APRIL WARER THE GROUP'S DIRECTOR PROMISED THAT IF MR CLINTON WON THE ELECTION SHE WORKED FOR HIM AS A VOLUNTEER SHE WOULD GET HER 24 KIDS INTO THE PARADE SHE PRESSED THE MATTER WITH DEMOCRATIC SEN PATRICK LEAHY AND VERMONT'S CONGRESSIONAL DELEGATION THAT HELPED THE CHILDREN ALSO FIRED OFF LETTERS TO MR CLINTON I LOVE PERFORMING ESPECIALLY AT BIG AND EXCITING EVENTS LIKE AN INAUGURATION WROTE ABBIE JURIANSKY A CLEVER 11YEAROLD FROM SHELBURNE I THINK YOU'RE GOING TO BE A GREAT PRESIDENT AND THAT WE SHOULD ALL CELEBRATE THE BEGINNING OF YOUR PRESIDENCY GILDING THE LILY SHE ADDED THIS PS I WOULD HAVE VOTED FOR YOU IF I HAD BEEN ABOUT 7 YEARS OLDER NICK SVOBODA A MEMBER OF THE PRECISION LAWN CHAIR DEMONSTRATION TEAM FROM VAIL COLO ISN'T SURE HOW HIS GROUP A DOZEN MEN IN 100 RAYON HAWAIIAN SHIRTS AND BERMUDA SHORTS MANAGED TO MAKE THE FINAL CUT THEY WERE TOUTED BY BILL HUSTED A COLUMNIST FOR DENVER'S ROCKY MOUNTAIN NEWS WHO NOMINATED US AS SOME KIND OF JOKE WHY NOT' WE SAID WE'VE DRAINED A LOT OF 12PACKS TO GET WHERE WE ARE THEY APPLIED SENDING ALONG A VIDEO OF A TYPICAL PERFORMANCE WHAT THEY DO IS WHACK AROUND LAWN CHAIRS THE WAY A MILITARY DRILL TEAM SLAPS AROUND RIFLES MR SVOBODA WANTED HIS GROUP ACTUALLY TO MARCH BUT ORGANIZERS CONSIGNED THE LAWNCHAIR DRILL TEAM TO ENTERTAINING SPECTATORS BEFORE THE PARADE BEGINS THERE WAS NEVER ANY QUESTION THAT THE SPIRIT OF AMERICAELVIS FLOAT WOULD BE IN THE PARADE BILL CLINTON'S CAMPAIGN NICKNAME WAS ELVIS AND HE IS AN ELVIS FAN THERE WILL BE AN ELVIS IMPERSONATOR OR TWO WHO WILL BE JOINED BY A NUMBER OF PERFORMERS WHO ACTUALLY WORKED WITH THE REAL ELVIS ON STAGE MR CLINTON'S FAVORITE ELVIS SONGS WILL BE PERFORMED AND WHAT MIGHT THEY BE AH THAT'S THE BIG SECRET SAYS JIM MYDLACH PROMOTER OF THE ELVIS GIG YOU'LL HAVE TO WAIT INAUGURAL PARADES ACTUALLY DO DATE ALL THE WAY BACK TO GEORGE WASHINGTON IN 1789 HE WAS GIVEN A MILITARY ESCORT FROM HIS LODGINGS IN NEW YORK CITY TO FEDERAL HALL ON WALL STREET WHERE THE CEREMONY TOOK PLACE IN 1805 AT THOMAS JEFFERSON'S SECOND INAUGURAL A CROWD OF MECHANICS AND ARTISANS FROM THE NAVY YARD PROVIDED A SPONTANEOUS ESCORT FOR MR JEFFERSON'S STROLL FROM THE CAPITOL TO THE WHITE HOUSE THE FIRST PROPER PARADE WAS JAMES MADISON'S IN 1809 MOSTLY INCLUDING MILITARY UNITS AND THE FIRST FLOATS APPEARED FOR WILLIAM HENRY HARRISON IN 1841 THE BIGGEST FLOAT THEN WAS A LOG CABIN THAT ATTESTED TO HIS CLAIMS TO HUMBLE ORIGINS AN EARLY EXAMPLE OF POLITICAL MANIPULATION ALAS THE NEW PRESIDENT CAUGHT COLD GIVING HIS LONG SPEECH AND DIED A MONTH LATER OF PNEUMONIA PHILIP BROOKS A HISTORIAN AT THE NATIONAL ARCHIVES AND THE OFFICIAL HISTORIAN FOR THIS YEAR'S INAUGURATION SAYS HIS PERSONAL FAVORITE WAS HARRY TRUMAN'S 1949 WINGDING MR BROOKS WAS BUT A LAD OF EIGHT AND HE CAN STILL REMEMBER THE ROAR OF SIXENGINED B36 BOMBERS FLYING OVER THAT PARADE WENT ON FOR HOURS HE SAYS THE CLINTON PROCESSION SHOULD TAKE ABOUT 90 MINUTES TO PASS ANY GIVEN SPOT ALONG THE ROUTE SOME MARCHERS ARE ALL OF A PIECE WITH TRADITION THE MARINE CORPS BAND FOR INSTANCE HAS DONE INAUGURALS ALMOST FROM THE BEGINNING THE OTHER SERVICES WILL BE THERE TOO AND OF COURSE THE 106TH ARKANSAS NATIONAL GUARD BAND AS FOR IRENE THE DEMOCRATIC DONKEY SHE MAY BE THE BEGINNING OF A NEW FAMILY TRADITION BACK IN ALABAMA SHE HAS A DOMESTIC PARTNER IN LEROY A 12YEAROLD JACKASS THEY HAVE A LITTLE DEMOCRATIC DONKEY OF THEIR OWN HIS NAME IS BILL 9301140160 930114 FEDERAL EXPRESS PILOTS TO VOTE TODAY IN RESCHEDULED REFERENDUM ON UNIONS BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP LONG OPPOSED TO ORGANIZED LABOR WITHIN ITS RANKS FACES A CLOSE CONTEST TODAY AS PILOTS VOTE ON UNIONIZATION THE AIREXPRESS CONCERN'S 2280 ELIGIBLE PILOTS WILL DECIDE WHETHER TO BE REPRESENTED BY ONE OF TWO LABOR GROUPS THAT HAVE COURTED THEIR SUPPORT SINCE THE AIR LINE PILOTS ASSOCIATION A WASHINGTONBASED UNION WAS NARROWLY REJECTED IN AUGUST 1991 THAT VOTE WAS NULLIFIED LAST OCTOBER BY THE NATIONAL MEDIATION BOARD WHICH RULED THAT FEDERAL EXPRESS'S CONDUCT WAS INCONSISTENT WITH THE LABORATORY CONDITIONS NEEDED FOR A FAIR ELECTION ALTHOUGH THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER FREDERICK SMITH HAS SUCCESSFULLY BATTLED ORGANIZED LABOR SO FAR THE TIDE HAS BEEN SHIFTING IN 1989 ONETHIRD OF THE PILOTS VOTED FOR REPRESENTATION IN 1991 THE NUMBER ROSE TO 49 AND FELL JUST 23 VOTES SHY OF A MAJORITY FEDERAL EXPRESS DECLINED TO DISCUSS TODAY'S VOTE INDUSTRY CONSULTANTS SAY SEVERAL FACTORS FAVOR THE UNION THERE IS LINGERING ANGER AMONG PILOTS OVER THE ISSUE OF SENIORITY THAT FOLLOWED THE 1989 MERGER OF FEDERAL EXPRESS AND FLYING TIGER INTERNATIONAL INC MORE RECENTLY PRICE WARS HAVE PROMPTED FEDERAL TO CUT COSTS A MOVE THAT UNION SUPPORTERS SAY HAS LED TO TIGHTER FLYING SCHEDULES WITHOUT A COMMENSURATE INCREASE IN PAY WE'RE DOING MORE FLYING WITH LESS SLEEP SHORTER LAYOVERS AND HARDER TRIPS SAID PAUL VITALE A FEDERAL PILOT IN OCTOBER AN INDEPENDENT PILOTS GROUP THE UNITED STATES PILOTS ASSOCIATION IN MEMPHIS TENN BEGAN AN ORGANIZING DRIVE AT THE MEMPHISBASED COMPANY THE GROUP IS EXPECTED TO WIN SUPPORT AMONG SOME FEDERAL EXPRESS PILOTS WHO AREN'T FANS OF THE AIR LINE PILOTS ASSOCIATION A VOTE FOR THE USPA WILL COUNT AS A PROUNION VOTE IF A MAJORITY ENDORSES UNIONIZATION THE GROUP WITH THE MOST VOTES IS CERTIFIED WORKING IN MANAGEMENT'S FAVOR IS THE HIRING OF ABOUT 40 PILOTS IN RECENT MONTHS FROM WITHIN COMPANY RANKS IN A CLOSE VOTE THEY COULD TIP THE SCALES AGAINST THE UNION IN ADDITION THE ALPA IN THE PAST YEAR HAS BEEN SUED BY FORMER EASTERN AIRLINES AND PAN AM CORP EMPLOYEES THE COMPANY IS CONCERNED ABOUT LOSING SOME OF ITS COMPETITIVE EDGE IF THE UNIONS WIN CONSULTANTS SAY EDWIN LAIRD PUBLISHER OF CARGO FACTS AN INDUSTRY NEWSLETTER BASED IN SEATTLE SAYS UNION REPRESENTATION FOR THE PILOTS WOULD BE LIKELY TO LEAD TO LOWER PRODUCTION AS A UNION MIGHT SEEK TO CUT BACK ON HOURS FLOWN OR HOURS SPENT ON CALL BY ITS MEMBERS A UNIONIZED SHOP ALSO COULD ALIENATE SOME SKITTISH CUSTOMERS WHO WOULD CONSIDER SWITCHING CARRIERS IF LABOR TROUBLES SURFACE SAID PHILIP BINKOW PRESIDENT OF PAYMENT TECHNOLOGIES INC AN ATLANTA CONSULTING FIRM FEDERAL ALSO HAS LONG BEEN CONCERNED ANALYSTS SAID THAT THE EXISTENCE OF A PILOT'S UNION WOULD LEAD TO FURTHER ORGANIZING EFFORTS AMONG THE COMPANY'S 78000 US EMPLOYEES ALREADY THE UNITED AUTO WORKERS IS TRYING TO ORGANIZE 1300 COURIERS AND PACKAGE HANDLERS IN THE PHILADELPHIA AREA AND IS SENDING A NEWSLETTER TO 50000 COMPANY WORKERS THE PRESIDENT OF THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS RON CAREY SAID THAT UNION ALSO PLANS TO ORGANIZE AT FEDERAL BUT INDUSTRY ANALYSTS SAID THERE IS LITTLE EVIDENCE OF LABOR UNREST ELSEWHERE IN THE COMPANY IF PILOTS WERE PART OF THE MAINSTREAM BLUECOLLAR WORKERS LIKE MECHANICS OR PEOPLE SORTING PACKAGES THEN YOU'D HAVE TO WORRY THAT SOMETHING WAS NOT RIGHT IN THE WAY THEY'RE TREATING EMPLOYEES SAID DAVID GUTHRIE AN ANALYST WITH MORGAN KEEGAN & CO WHAT'S MORE IN THE CURRENT CLIMATE OF COSTCUTTING WAGE CONCESSIONS AND LAYOFFS IN THE INDUSTRY ANALYSTS SAY IT'S UNLIKELY A UNION IF ELECTED WOULD BE ABLE TO GET BIG INCREASES IN BENEFITS GIVEN THE TRENDS IN THE INDUSTRY THE UNION POSITION HAS BEEN WEAKENED SAID JAMES PARKER AN ANALYST AT ROBINSON HUMPHREY CO 9301140159 930114 ITT SAID TO PLAN MAJOR CHANGES IN FINANCE UNIT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP IS PLANNING MAJOR CHANGES AT THE CONSUMER BANKING OPERATION OF ITS ITT FINANCIAL CORP UNIT POSSIBLY SELLING THE UNIT OR TAKING A MAJOR WRITEOFF FOR BAD LOANS EITHER WAY THE CONSUMER BANKING BUSINESS IS LIKELY TO BE SHARPLY RESHAPED MOVING AWAY FROM PERSONAL CONSUMER LENDING INTO CREDIT CARDS AND REAL ESTATE HOME MORTGAGES THE BUSINESS ITT CONSUMER FINANCIAL CORP MINNEAPOLIS ONE OF THE NATION'S LARGEST CONSUMER FINANCE COMPANIES HAS BEEN BATTERED FOR SEVERAL YEARS BY MANAGEMENT TURNOVERS RISING CREDIT LOSSES AND LEGAL SETTLEMENTS OVER SOME CONSUMER LENDING PRACTICES THE RECESSION TOOK AN ADDED TOLL UNDERMINING CONSUMER CREDITWORTHINESS AND FORCING THE COMPANY TO RECORD MAJOR CHARGEOFFS FOR UNCOLLECTIBLE LOANS AND THE PARENT TO INJECT MORE CAPITAL ITT CORP'S TOP MANAGEMENT APPARENTLY HAS GROWN TIRED OF THE CONSUMER FINANCE DRAG ON ITS EARNINGS AS WELL AS DEMANDS TO PUMP IN MORE CAPITAL THE CONSUMER BANKING UNIT HAS BEEN THE BIG PROBLEM AT THE FINANCIAL UNIT SAYS PHUA K YOUNG AN ANALYST AT SHEARSON LEHMAN BROTHERS PAST PROBLEMS HAVE FORCED THEM TO REALLY BUMP UP RESERVES TO COVER PROBLEMS AT THE CONSUMER BANKING UNIT AND THAT HAS BEEN A DRAG ON FINANCIAL'S PERFORMANCE ITT OFFICIALS DECLINE TO ANSWER QUESTIONS ABOUT THE PLANS FOR THE UNIT HOWEVER ANALYSTS AND OTHERS FAMILIAR WITH THE COMPANY SAID THAT THE OPERATION'S TOP MANAGEMENT MET THIS MONTH IN NEW YORK TO HAMMER OUT A NEW STRATEGY THAT MAY INVOLVE SELLING THE CURRENT CONSUMER FINANCE OPERATIONS OR TAKING A MAJOR CHARGE TO COVER BAD LOANS ITT BROUGHT IN FRANK J SCHULTZ A FORMER BANKAMERICA CORP EXECUTIVE LAST JUNE AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ITT UNIT MR SCHULTZ HAS HIRED ANOTHER BANKAMERICA OFFICIAL TO HELP TURN AROUND THE CONSUMER BUSINESS GIVEN THEIR EXPERTISE IN RESIDENTIAL LENDING AND CREDIT CARD OPERATIONS THE BANKAMERICA CREW SEEMS LIKELY TO REFOCUS CONSUMER LENDING OPERATIONS ON THOSE LINES MARTIN J KELLY THE THIRD TOP EXECUTIVE AT THE CONSUMER UNIT IN LESS THAN THREE YEARS RESIGNED AT YEAR END LAST AUGUST CREDIT RATINGS AGENCIES REQUIRED ITT CORP TO PUT IN WRITING THAT IT WOULD PROVIDE UP TO 300 MILLION IN CASE ITT FINANCIAL FOUND ITSELF SHORT OF CASH RAY MILLER AN ANALYST WITH STANDARD & POOR'S CORP SAID WE WOULD HAVE DOWNGRADED ITT FINANCIAL WITHOUT THE SUPPORT AGREEMENT AT THE TIME WE SAW WEAKNESS ESPECIALLY IN THE CONSUMER UNIT AND TO A LESSER DEGREE WITH THE REAL ESTATE ON THE COMMERCIAL SIDE AND THAT CONTINUES PARENT SUPPORT WAS PROBABLY ONE OF THE WEAKEST AGREEMENTS WE HAVE SEEN IN TERMS OF LIQUIDITY AND DURATION MR MILLER STRESSES THAT THE MAIN PROBLEMS ARE IN THE CONSUMER BUSINESS AND THE REAL ESTATE THE OTHER COMMERCIAL FINANCE BUSINESS HE SAID IS A VERY STRONG OPERATION WITH GOOD ASSETS 9301140158 930114 PENNZOIL CO OFFERS DEBT EXCHANGEABLE INTO CHEVRON SHARES HOUSTON PENNZOIL CO SAID IT COMPLETED THE UNDERWRITTEN PUBLIC OFFERING OF 4025 MILLION OF ITS 65 DEBENTURES EXCHANGEABLE AT THE OPTION OF THE HOLDERS INTO A TOTAL OF 4784518 SHARES OF CHEVRON CORP COMMON STOCK OWNED BY PENNZOIL THE DEBENTURES EXCHANGEABLE INTO CHEVRON SHARES AT 84125 A SHARE WILL MATURE ON JAN 15 2003 AND ARE CALLABLE BEGINNING JAN INCLUDED IN THE OFFERING WERE 525 MILLION OF DEBENTURES SOLD PURSUANT TO THE EXERCISE IN FULL OF OVERALLOTMENT OPTIONS BY THE US UNDERWRITERS AND INTERNATIONAL MANAGERS PROCEEDS WILL BE USED TO REPLACE HIGHERCOST REFUNDABLE DEBT AND OTHER OBLIGATIONS OF THE COMPANY 9301140157 930114 INTERNATIONAL ANY SUGGESTION OF ISRAELI WITHDRAWAL SPARKS ECONOMIC WORRIES IN GAZA STRIP BY AMY DOCKSER MARCUR STAFF REPORTER OF THE WALL STREET JOURNAL GAZA CITY GAZA STRIP LIKE MOST GAZANS MOHAMED YAZIJI WANTS TO SEE AN END TO ISRAEL'S OCCUPATION OF THE GAZA STRIP TO MAKE WAY FOR AN INDEPENDENT PALESTINIAN STATE BUT WHEN ISRAELI CABINET MINISTERS SUGGESTED AN ISRAELI WITHDRAWAL FROM GAZA SHUTTING THE BORDER AND LEAVING THE GAZANS ON THEIR OWN MR YAZIJI MANAGER OF SEVENUP BOTTLING CO OF GAZA CITY FOUND THE PROSPECT TERRIFYING ALL MY RAW MATERIALS THE SUGAR THE FLAVORS THE BOTTLES THE CONTAINERS COME FROM ISRAEL OR ARE IMPORTED FROM ABROAD AND GO THROUGH ISRAEL TO GET TO GAZA SAYS MR YAZIJI WHOSE FACTORY PRODUCES 10000 CARTONS OF THE SOFT DRINK DAILY IF ISRAEL LEAVES GAZA WHERE WILL I GET THE RAW MATERIALS FOR MY FACTORIES OUR ELECTRICITY OIL AND GAS COME FROM ISRAEL THE ISRAELI POLICY OF THE LAST 25 YEARS HAS BEEN TO MAKE US ECONOMICALLY DEPENDENT ON THEM IF THEY LEAVE NOW GAZA WILL BE IN A HUGE ECONOMIC MESS IN THEIR 1989 BOOK ABOUT THE PALESTINIAN INTIFADA OR UPRISING ISRAELI DEFENSE ANALYSTS EHUD YA'ARI AND ZE'EV SCHIFF CITING A CLASSIFIED MILITARY STUDY ON THE INCREASING DIFFICULTIES OF CONTROLLING GAZA SAID THE DAY WOULD COME WHEN ISRAEL WOULD BEG FOR SOMEONE TO TAKE GAZA OFF ITS HANDS THE LATEST CALLS CAME LAST MONTH WHEN FOUR CABINET MINISTERS QUESTIONED THE VALUE OF REMAINING THERE IN THE WAKE OF A SHARP ESCALATION OF VIOLENCE IN GAZA INCLUDING THE FATAL SHOOTING OF THREE RESERVE SOLDIERS BY PALESTINIANS BELONGING TO THE ISLAMIC FUNDAMENTALIST HAMAS GROUP FORTY SOLDIERS FROM THE SAME UNIT SENT A PETITION TO ISRAELI PRIME MINISTER YITZHAK RABIN URGING THE GOVERNMENT TO FIND A POLITICAL AND MILITARY RESPONSE TO WHAT THEY DESCRIBED AS THE LEBANONIZATION OF THE GAZA STRIP PROBABLY 90 OF THE ISRAELI PUBLIC SUPPORTS THE IDEA OF US GETTING OUT OF GAZA RIGHT NOW SAYS ONE ISRAELI DEFENSE OFFICIAL THEY DON'T FEEL THE EMOTIONAL OR HISTORICAL CONNECTION TO GAZA THAT THEY DO FOR PLACES ON THE WEST BANK AND BECAUSE GAZA IS ISOLATED FROM THE CENTER OF ISRAEL WHERE MOST OF THE POPULATION LIVES THE PUBLIC DOESN'T SEE A SECURITY INTEREST IN STAYING THERE EITHER IRONICALLY EVEN AS AN ISRAELI CONSENSUS SEEMS TO BE CRYSTALIZING AROUND THE IDEA OF ECONOMIC POLITICAL AND PHYSICAL SEPARATION FROM GAZA PALESTINIANS ARE SAYING GAZA CAN'T EXIST ECONOMICALLY WITHOUT ISRAEL EVEN AFTER THE PALESTINIANS ACHIEVE SELFRULE IN THE OCCUPIED TERRITORIES DURING THE 1950S WHEN GAZA WAS UNDER EGYPTIAN CONTROL THE GAZAN ECONOMY DEPENDED MAINLY ON FOREIGN CURRENCY FROM PALESTINIANS WORKING IN THE PERSIAN GULF STATES AND ON PROCEEDS FROM THE SALE OF IMPORTED CONSUMER GOODS UNAVAILABLE IN EGYPT WHEN ISRAEL CAPTURED THE WEST BANK AND THE GAZA STRIP IN 1967 IT BLOCKED DEVELOPMENT OF A LOCAL PALESTINIAN ECONOMY SO GAZANS BEGAN COMMUTING IN LARGE NUMBERS TO JOBS IN ISRAEL NOW GAZA IS SO FINANCIALLY DEPENDENT ON ISRAEL THAT WHEN THE ISRAELIS BARRED RESIDENTS FROM CROSSING THE BORDER TO WORK FOR 12 DAYS RECENTLY A PALESTINIAN TRADE UNION ESTIMATED THAT THE CLOSURE COST GAZANS 18 MILLION A DAY IN LOST WAGES AND BUSINESS EVEN AFTER FIVE YEARS OF THE INTIFADA 40 OF GAZA'S 110000PERSON LABOR FORCE STILL COMMUTE DAILY TO JOBS IN ISRAEL GENERATING 65 OF GAZA'S REVENUE IN THE PAST 18 MONTHS THE ISRAELIS HAVE REVISED THEIR POLICIES IN HOPES OF CREATING MORE JOBS WITHIN THE OCCUPIED TERRITORIES INVESTORS WILLING TO START BUSINESSES THERE CAN GET INCOME TAX EXEMPTIONS FOR THREE TO FIVE YEARS TEMPORARY RESIDENCY IS AVAILABLE TO PALESTINIANS LIVING ABROAD OR TO OTHER FOREIGN INVESTORS DOING BUSINESS IN THE WEST BANK OR GAZA IN 1992 THE ISRAELIS APPROVED LICENSES FOR 90 NEW LOCALLY RUN FACTORIES MAINLY SMALL 10PERSON COMPANIES MAKING PASTA TEXTILES AND PLASTICS ACCORDING TO THE MINISTRY OF DEFENSE DANNY ROTHSCHILD COORDINATOR OF GOVERNMENT ACTIVITIES IN THE OCCUPIED TERRITORIES RECENTLY ASKED THE ISRAELI CABINET TO APPROVE MORE FUNDING FOR CREATING JOBS IN GAZA ARGUING THAT IMPROVED ECONOMIC CONDITIONS WILL CUT INTO GROWING PALESTINIAN SUPPORT FOR ISLAMIC FUNDAMENTALIST GROUPS THE ISRAELI GOVERNMENT'S OFFICIAL POSITION REMAINS THAT GAZA'S PROBLEMS MUST BE SOLVED AS PART OF A COMPREHENSIVE ISRAELIPALESTINIAN AGREEMENT MR RABIN OPPOSES THE IDEA OF AN ISRAELI WITHDRAWAL FROM GAZA OUT OF CONCERN THAT IT WILL LEAD TO MORE VIOLENCE BY PALESTINIAN GROUPS WHO MAY VIEW THE MOVE AS AN ADMISSION OF WEAKNESS NONETHELESS THE BREWING POLITICAL BATTLE OVER GAZA AND MOUNTING PRESSURE BY THE ISRAELI PUBLIC HAVE FORCED GAZANS TO TRY TO REDUCE THEIR ECONOMIC DEPENDENCY ON ISRAEL AND CONSIDER THE POSSIBILITY OF ISRAELI WITHDRAWAL SAYS MANSOUR SHAWA A PROMINENT GAZA BUSINESSMAN AND PRESIDENT OF THE BENEVOLENT SOCIETY THERE IS A LONG WAY TO GO A UNITED NATIONS DEVELOPMENT OFFICIAL SAYS GAZA'S SITUATION IS SO BAD THAT THE ONLY WAY TO EASE THE ECONOMIC MISERY MAY BE TO MOVE TENS OF THOUSANDS OF GAZANS TO THE WEST BANK WHICH HAS GREATER POTENTIAL FOR ECONOMIC INDEPENDENCE 9301140156 930114 REGENERON ANNOUNCES START OF PHASE II STUDY OF DRUG TO TREAT ALS TARRYTOWN NY REGENERON PHARMACEUTICALS INC SAID IT HAS BEGUN A PHASE II CLINICAL STUDY OF ITS DRUG TO TREAT AMYOTROPHIC LATERAL SCLEROSIS BETTER KNOWN AS LOU GEHRIG'S DISEASE REGENERON IS THE SECOND COMPANY THIS WEEK TO ANNOUNCE THE START OF A PHASE II STUDY FOR A DRUG TO COMBAT THE FATAL DISEASE THE NEW STUDY IS MEANT TO DETERMINE THE LONGTERM SAFETY AND EFFECTIVENESS OF THE DRUG RECOMBINANT HUMAN CILIARY NEUROTROPHIC FACTOR OR RHCNTF THE TESTING WOULD INVOLVE OVER 50 PATIENTS REGENERON SAID REGENERON IS ONE OF SEVERAL COMPANIES RACING TO DEVELOP A DRUG AGAINST ALS ON MONDAY CEPHALON INC SAID IT BEGAN PHASE II TRIALS OF ITS MYOTROPHIN A DIFFERENT DRUG BASED ON A TYPE OF RECOMBINANT INSULINLIKE GROWTH FACTOR SYNERGEN INC WHICH ALSO IS DEVLOPING A CNTF DRUG FOR ALS SAID YESTERDAY THAT IT EXPECTS TO BEGIN ITS PHASE II TRIALS THIS MONTH A SPOKESWOMAN ADDED THAT BOULDER COLOBASED SYNERGEN HAS THREE PATENTS ON ITS CNTF DRUG WHILE REGENERON HAS NONE IF REGENERON BECOMES THE FIRST TO GET FDA MARKETING APPROVAL FOR THE RHCNTF IT WILL BE GRANTED ORPHAN DRUG STATUS GIVING IT EXCLUSIVE RIGHTS TO SELL THE DRUG FOR SEVEN YEARS ALS AFFECTS APPROXIMATELY 2500030000 PEOPLE IN THE US THE DISEASE PROGRESSES OVER THREE TO FIVE YEARS WITH DEATH TYPICALLY OCCURRING AS A RESULT OF LOSS OF RESPIRATORY MUSCLE CONTROL RENDERING THE PATIENT UNABLE TO BREATHE PRESENTLY THERE IS NO EFFECTIVE THERAPY FOR ALS DOCTORS HAVE BEEN FRUSTRATED FOR SO LONG BY THIS DISEASE AND MOLECULAR BIOLOGISTS SEE ALS AS A HIMALAYA TO BE CLIMBED SAID PAUL LUBETKIN VICE PRESIDENT AND GENERAL COUNSEL OF REGENERON WITH RHCNTF WE CAN GIVE THEM THE TOOLS TO CLIMB THIS HIMALAYA IN OVERTHECOUNTER TRADING REGENERON SHARES GAINED 1 TO CLOSE AT 1475 9301140155 930114 ORANGE JUICE PRICES ARE EXPECTED TO FALL 15 BELOW 1992 LEVELS LAKELAND FLA CONSUMER PRICES FOR ORANGE JUICE THIS YEAR ARE EXPECTED TO FALL ABOUT 15 BELOW THOSE OF 1992 TO THEIR LOWEST LEVEL SINCE 1987 ACCORDING TO THE FLORIDA DEPARTMENT OF CITRUS A HIGHER CROP ESTIMATE FROM THE US DEPARTMENT OF AGRICULTURE EARLIER THIS WEEK PROMPTED FLORIDA'S CITRUS DEPARTMENT TO REVISE ITS FORECAST MADE LAST FALL THAT ORANGE JUICE PRICES WOULD FALL ABOUT 10 THIS YEAR THE REVISED AGRICULTURE DEPARTMENT ESTIMATE PUTS FLORIDA ORANGE PRODUCTION AT ABOUT 188 MILLION BOXES FOR THE CURRENT SEASON TWO MILLION BOXES MORE THAN AN OCTOBER FORECAST THE ORANGE CROP IS EXPECTED TO BE THE SECONDLARGEST IN FLORIDA'S HISTORY THE RECORD OF ABOUT 206 MILLION BOXES WAS SET DURING THE 19791980 SEASON THE INCREASED PRODUCTION MEANS MORE ORANGE JUICE WILL BE AVAILABLE PUSHING PRICES DOWN THE CITRUS DEPARTMENT SAID FLORIDA ORANGE JUICE PRODUCTION IS NOW EXPECTED TO TOTAL 111 BILLION GALLONS A 43 INCREASE OVER ORIGINAL ESTIMATES ORANGE JUICE PRICES ARE ALREADY AT THEIR LOWEST LEVEL SINCE 1991 THE DEPARTMENT SAID AND WILL DROP FURTHER OVER THE NEXT TWO TO THREE MONTHS 9301140154 930114 S&P CONFIRMS RATINGS ON INTERNATIONAL UNITS OF 6 CANADIAN INSURERS NEW YORK STANDARD & POOR'S CORP SAID IT CONFIRMED ITS RATINGS ON THE INTERNATIONAL OPERATIONS OF SIX OF CANADA'S BIGGEST LIFE INSURERS WHICH WERE PUT UNDER REVIEW LAST FALL AFTER S&P DOWNGRADED SLIGHTLY THE CANADIAN GOVERNMENT'S FOREIGNCURRENCY DEBT THE REVIEW HAD BEEN BASED SOLELY ON THE NEW YORK RATING CONCERN'S POLICY NOT TO ALLOW ANY COMPANY A HIGHER RATING THAN THAT OF ITS SOVEREIGN GOVERNMENT ALTHOUGH THIS POLICY REMAINS UNCHANGED FOR RATING DEBT ISSUES S&P SAID IT IS LESS RELEVANT WHEN RATING THE CLAIMSPAYING ABILITIES OF LIFE INSURANCE COMPANIES LIFE INSURERS ARE REQUIRED TO MAINTAIN MATCHING ASSETS AND LIABILITES IN EACH JURISDICTION WHERE THEY DO BUSINESS S&P SAID ITS POLICY IS BASED ON THE CONCERN THAT A GOVERNMENT WITH A LOWER DEBT RATING WAS MORE LIKELY TO RESTRICT CAPITAL FLOWS BY DOMESTIC COMPANIES TO FOREIGN OPERATIONS BUT IN THE CASE OF CANADA THE CHANCE OF THIS HAPPENING IS EXTREMELY REMOTE S&P SAID S&P'S RATING CONFIRMATION AFFECTS THE CLAIMSPAYING ABILITIES OF CANADA LIFE ASSURANCE CO GREATWEST LIFE ASSURANCE CO A UNIT OF GREATWEST LIFECO INC LONDON LIFE INSURANCE CO A UNIT OF TRILON FINANCIAL CORP MANUFACTURERS LIFE INSURANCE CO MUTUAL LIFE ASSURANCE CO OF CANADA AND SUN LIFE ASSURANCE CO OF CANADA ALL OF THE COMPANIES ARE RATED TRIPLEA S&P'S HIGHEST RATING 9301140153 930114 ECONOMY RUSSIANUKRAINIAN DISPUTE DELAYS TALKS WITH WEST BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A PROLONGED DISPUTE BETWEEN RUSSIA AND UKRAINE IS HOLDING UP DEBTRESCHEDULING TALKS WITH THE WEST AND DISRUPTING THE FLOW OF GRAIN AND CREDIT TO THE FORMER SOVIET UNION A TOP US TREASURY OFFICIAL SAID THE DELAY IS SIMPLY HARMING THEIR ABILITY TO SECURE NEW FLOWS OF MONEY AND UNDERMINING THEIR INTERNATIONAL CREDIT STANDING SAID OLIN WETHINGTON ASSISTANT TREASURY SECRETARY FOR INTERNATIONAL AFFAIRS IT'S QUITE A PUZZLING SITUATION THE US AND OTHER WESTERN NATIONS LAST MONTH OFFERED TO PERMIT RUSSIA AND THE REST OF THE FORMER SOVIET UNION TO PUT OFF ABOUT 15 BILLION IN DEBTSERVICE PAYMENTS OWED FOR 1992 AND 1993 UNTIL LATER IN THE DECADE THE OFFER WOULD HAVE SLASHED RUSSIA'S DEBTSERVICE PAYMENTS TO FOREIGN GOVERNMENTS TO 275 MILLION THIS YEAR BUT IN A MOVE THAT HAS FRUSTRATED WESTERN GOVERNMENTS RUSSIA AND UKRAINE SAID THIS WEEK THAT THEY CAN'T COMPLETE NEGOTIATIONS ON THAT OFFER AND THEY WON'T BE ABLE TO UNTIL THE END OF JANUARY AT THE EARLIEST THEY'VE BEEN LED RIGHT UP TO THE STREAM AND JUST HAVE TO REACH DOWN AND DRINK FROM IT MR WETHINGTON SAID UNLESS THEY ARE ABLE TO PUT THIS RESCHEDULING IN PLACE THE WEST ISN'T GOING TO BE WILLING TO PROVIDE FUNDS THE INCOMING CLINTON ADMINISTRATION HASN'T SAID ANYTHING SPECIFIC ABOUT RUSSIA'S DEBTS BUT IT'S LIKELY TO SUPPORT THE OFFER THE WEST MADE LAST YEAR RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK ARE TO MEET TOMORROW TO ATTEMPT TO NARROW THEIR DIFFERENCES ONE OF WHICH IS HOW TO DIVIDE THE ASSETS SHIPS PLANES REAL ESTATE AND CASH THAT BELONGED TO THE FORMER SOVIET UNION THE TWO NATIONS ALSO ARE ARGUING ABOUT HOW MUCH OIL RUSSIA WILL SELL TO UKRAINE AND AT WHAT PRICE AND HOW MUCH UKRAINE WILL CHARGE RUSSIA FOR ALLOWING OIL AND NATURAL GAS TO CROSS ITS TERRITORY UKRAINE AGREED LAST NOVEMBER TO LET RUSSIA MANAGE FOREIGN DEBTS OF THE FORMER SOVIET UNION IT HAS AGREED TO TAKE RESPONSIBILITY FOR ABOUT 16 OF THOSE DEBTS THE US HAS SUSPENDED GRAIN SHIPMENTS TO RUSSIA BECAUSE THE NATION IS IN DEFAULT ON ABOUT 200 MILLION OF LOANS EXTENDED FOR PREVIOUS SALES OF GRAIN THOSE DEBTS TO THE US ARE PART OF THE PROPOSED RESTRUCTURING 9301140152 930114 LETTERS TO THE EDITOR BACK THEN EVERYONE KNEW ANNIE'S ADDRESS YOUR DEC 3 ARTICLE STIRRING MEMORIES GIVES OVALTINE A LIFT STIRRED UP MEMORIES ALL RIGHT AS THE HEADLINE SAID BUT FOR MOST NOSTALGIA BUFFS IT IS LITTLE ORPHAN ANNIE NOT CAPTAIN MIDNIGHT WHOSE NAME COMES MOST READILY TO MIND WHENEVER OVALTINE IS MENTIONED OVALTINE SPONSORED LITTLE ORPHAN ANNIE FOR NEARLY 10 YEARS BEFORE IT SWITCHED TO CAPTAIN MIDNIGHT IN 1940 IN THE 1930S WE KIDS COULD GET A SWELL ORPHAN ANNIE SHAKEUP MUG AS ANNOUNCER PIERRE ANDRE DESCRIBED IT FOR 10 CENTS OR THE ALUMINUM SEAL FROM INSIDE AN OVALTINE CAN ALL WE HAD TO WRITE ON THE ENVELOPE WAS LITTLE ORPHAN ANNIE CHICAGO ILLINOIS THE MAILMEN ALL KNEW ANNIE NO NEED FOR BOX NUMBERS OR ZIP CODES THEN WE'D ASK OUR MOTHERS FOR A THREECENT STAMP DROOL ON BABY BOOMERS AND IN A FEW DAYS OUR SWELL ORPHAN ANNIE SHAKEUP MUG WOULD BE ON ITS WAY 9301140151 930114 MARKETING BRIEF PHILIPS ELECTRONICS NV RECORD COMPANY INCREASES STAKE IN 2 JAPAN SUBSIDIARIES RECORD COMPANY POLYGRAM NV SAID IT INCREASED ITS HOLDINGS IN TWO JAPANESE SUBSIDIARIES AT A TOTAL COST OF ABOUT 25 MILLION POLYGRAM WHICH IS 80OWNED BY DUTCH ELECTRONICS COMPANY PHILIPS ELECTRONICS NV SAID IT INCREASED ITS SHARE OF NIPPON PHONOGRAM TO 100 FROM 65 AND ITS HOLDING IN POLYDOR KK TO 90 FROM ABOUT 75 JAPAN IS THE SECOND LARGEST WORLD MARKET FOR MUSIC AFTER THE US AND POLYGRAM HAS BEEN INCREASING ITS PRESENCE IN THAT COUNTRY FOR SOME YEARS LAST YEAR POLYGRAM BOUGHT 70 OF A JAPANESE MUSIC PUBLISHING COMPANY 9301140150 930114 BUSINESS BRIEF KROGER CO FIRM SAYS IT HAD 10 RISE IN 4THQUARTER CASH FLOW KROGER CO CINCINNATI SAID OPERATING CASH FLOW FOR THE FOURTH QUARTER OF 1992 ROSE 10 OR MORE FROM THE 250 MILLION REPORTED FOR THE YEAREARLIER PERIOD THE GROCERYSTORE CHAIN ALSO SAID IT EXPECTS TO REPORT THAT SAMESTORE SALES ROSE 1 FROM THE YEAREARLIER PERIOD ON THE NEW YORK STOCK EXCHANGE KROGER'S STOCK CLOSED AT 16 A SHARE UP 2 A KROGER SPOKESMAN DECLINED TO ESTIMATE EARNINGS AS OF YESTERDAY ANALYSTS EXPECTED KROGER TO EARN ABOUT 52 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH 33 CENTS A SHARE A YEAR EARLIER KROGER SAID IT EXPECTS 1993 AND 1994 EARNINGS TO BENEFIT FROM LOWER INTEREST EXPENSE THIS YEAR THE COMPANY EXPECTS TO PAY 430 MILLION TO 440 MILLION IN INTEREST DOWN FROM 475 MILLION LAST YEAR LAST YEAR KROGER ISSUED 13 BILLION OF NEW DEBT AT AN AVERAGE RATE OF 911 TO REFINANCE DEBT WITH AN AVERAGE RATE OF MORE THAN 13 KROGER'S MOST EXPENSIVE DEBT 800 MILLION OF 155 JUNIOR DISCOUNT SUBORDINATED DEBENTURES IS CALLABLE IN OCTOBER KROGER ALSO SAID IT EXPECTS ITS CAPITAL SPENDING TO TOTAL ABOUT 1 BILLION OVER THE NEXT THREE YEARS 9301140149 930114 INTERNATIONAL BRIEF DIXONS GROUP PLC PRETAX PROFIT DECLINED 19 TO 219 MILLION IN 1ST HALF BRITISH CONSUMERELECTRONICS RETAILER DIXONS GROUP PLC REPORTED PRETAX PROFIT FELL 19 IN ITS FISCAL FIRST HALF DIXONS EARNED 142 MILLION 219 MILLION IN THE PERIOD ENDED NOV 14 DOWN FROM 175 MILLION A YEAR EARLIER SALES ROSE TO 8734 MILLION FROM 8717 MILLION THE LATEST RESULTS WHICH WERE IN THE MIDDLE OF THE RANGE OF ANALYSTS' EXPECTATIONS WERE HURT BY THE COMPANY'S SILO CHAIN IN THE US WHERE THE OPERATING LOSS WIDENED TO 149 MILLION FROM 109 MILLION A YEAR EARLIER DIXONS LEFT ITS INTERIM DIVIDEND UNCHANGED AT 16 PENCE A SHARE DESPITE MARKET EXPECTATIONS THAT THE PAYOUT WOULD BE INCREASED TO BETWEEN 17 PENCE AND 175 PENCE A SHARE THE COMPANY SAID THE FIRST EIGHT WEEKS OF ITS SECOND HALF SAW SALES AT ITS DIXONS AND CURRYS ELECTRONICS STORES IN BRITAIN INCREASE 17 FROM A YEAR EARLIER SALES OF COMPUTERBASED PRODUCTS CONTRIBUTED STRONGLY TO THE RISE DIXONS SAID HOWEVER THE COMPANY SAID PROFIT MARGINS AT THE TWO CHAINS FELL SLIGHTLY DUE TO INCREASED MARKETING COSTS 9301140148 930114 DIVIDEND NEWS INDEPENDENT INSURANCE SLASHES ITS DIVIDEND ON HURRICANE LOSSES JACKSONVILLE FLA INDEPENDENT INSURANCE GROUP INC CITING LOSSES FROM HURRICANE ANDREW SAID IT SLASHED ITS QUARTERLY DIVIDEND TO SIX CENTS FROM 22 CENTS THE COMPANY SAID IN NOVEMBER THAT A DIVIDEND CUT MIGHT BE NEEDED TO HELP OFFSET AFTERTAX LOSSES OF ABOUT 43 MILLION AT ITS PROPERTY/CASUALTY SUBSIDIARY CAUSED BY THE HURRICANE AT THAT TIME THE COMPANY ALSO SAID THAT IT TOOK SEVERAL COSTCUTTING MEASURES INCLUDING FREEZING WAGES FOR 1100 EMPLOYEES AND CUTTING SALARIES FOR SENIOR MANAGERS THE NEW SIXCENT DIVIDEND IS PAYABLE MARCH 1 TO SHARES OF RECORD FEB 8 INDEPENDENT INSURANCE SAID THAT THE BOARD WILL CONSIDER INCREASING THE QUARTERLY DIVIDEND AS SOON AS CIRCUMSTANCES DICTATE IT TO BE APPROPRIATE SEPARATELY A GROUP INCLUDING TWEEDY BROWNE CO LP RAISED ITS STAKE IN INDEPENDENT INSURANCE TO 987 IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE GROUP SAID IT PURCHASED 96679 COMMON SHARES FROM NOV 23 TO DEC 29 AT PRICES FROM 1525 TO 1575 A SHARE THE GROUP NOW HOLDS 676979 COMMON SHARES FOR INVESTMENT REASONS AN INDEPENDENT INSURANCE SPOKESMAN SAID WE SUPPORT THEIR DECISION THAT OUR STOCK IS A GOOD BUY HE ADDED THAT THE GROUP HAS GIVEN NO INDICATION THAT THE ACCUMULATION OF STOCK IS FOR ANYTHING BUT INVESTMENT 9301140147 930114 INTERNATIONAL BRIEF CHASE MANHATTAN CORP CREDIT LYONNAIS SETS ACCORD TO ACQUIRE AN AUSTRIAN UNIT PURSUING ITS MARCH ACROSS EUROPE CREDIT LYONNAIS IS ABOUT TO ACQUIRE AN AUSTRIAN COMMERCIALBANKING SUBSIDIARY FROM CHASE MANHATTAN CORP CREDIT LYONNAIS SAID IT AGREED IN PRINCIPLE SUBJECT TO THE APPROVAL OF THE AUSTRIAN AUTHORITIES TO ACQUIRE CHASE MANHATTAN BANK AUSTRIA AG TERMS WEREN'T DISCLOSED THE CHASE UNIT BASED IN VIENNA EMPLOYS 60 PEOPLE FOUNDED IN 1966 IT HAD ASSETS AT THE END OF 1991 OF AROUND 25 BILLION SCHILLINGS 2179 MILLION IT IS MAINLY ACTIVE IN CORPORATE LENDING WITH SOME PROMINENT AUSTRIAN AND INTERNATIONAL COMPANIES AMONG ITS CLIENTS A CHASE SPOKESMAN SAID THE TRANSACTION IS IN LINE WITH THE US BANK'S STRATEGY OF WITHDRAWING FROM MARKETS WHERE IT IS ONLY A PERIPHERAL PLAYER IN ORDER TO CONCENTRATE ON ITS CORE INTERNATIONAL BUSINESSES 9301140146 930114 TECHNOLOGY BRIEF ORACLE CORP COMPANY SUN MICROSYSTEMS CREATE A PARTNERSHIP ORACLE CORP REDWOOD SHORES CALIF SAID IT TEAMED UP WITH SUN MICROSYSTEMS COMPUTER CORP TO DEVELOP PRODUCTS AND SERVICES TARGETED AT THE PHARMACEUTICAL INDUSTRY SUN MICROSYSTEMS COMPUTER IS A UNIT OF SUN MICROSYSTEMS INC OF MOUNTAIN VIEW CALIF THE PARTNERSHIP AIMS TO TAP A POTENTIAL 200 MILLION MARKET IN PROVIDING COMPUTING TOOLS FOR DRUG COMPANIES THAT ARE RESEARCHING EXPERIMENTAL DRUGS AND FILING REAMS OF RESEARCH DATA WITH FEDERAL REGULATORS AS THEY SEEK MARKET APPROVAL ROBERT SEPANLOO SUN'S MARKET MANAGER FOR PHARMACEUTICAL AND CHEMICAL MARKETS PREDICTED THE COMPUTERASSISTED NEW DRUG APPLICATION SYSTEM WITH ELECTRONIC DATA FILING WILL DRAMATICALLY REDUCE THE TIME NEEDED TO MOVE NEW TREATMENTS THROUGH THE REGULATORY PIPELINE 9301140145 930114 BUSINESS BRIEF CALDOR CORP RETAILER TO OPEN FOUR STORES IN ROCHESTER NY IN MARCH CALDOR CORP SAID IT WILL OPEN FOUR NEW STORES IN ROCHESTER NY IN MARCH AND PLANS TO OPEN SIX TO EIGHT NEW STORES IN THE WASHINGTON DC MARKET BY LATE 1994 THE NORWALK CONN DISCOUNT RETAILER SAID THE STORE OPENINGS ARE PART OF ITS PLAN TO ADD 13 TO 16 STORES A YEAR FOR THE NEXT FIVE YEARS INCREASING SELLING SPACE BY 10 ON AN ANNUAL BASIS ADDITIONALLY THE COMPANY IS PLANNING TO REMODEL ABOUT 20 EXISTING STORES A YEAR CALDOR IS ATTRIBUTING THE REMODELING PROGRAM WHICH WAS INTRODUCED LAST YEAR IN BRISTOL PA TO ITS STRONG COMPARATIVE STORE SALES GROWTH OVER THE PAST SEVERAL MONTHS CALDOR HAD SALES OF 415 MILLION IN DECEMBER UP 18 FROM YEAREARLIER SALES OF 349 MILLION 9301140144 930114 CORRECTIONS & AMPLIFICATIONS ARTHUR R MILLER REPRESENTED SOME MEMBERS OF A LEADCOUNSEL STEERING COMMITTEE IN A RECENT CASE STEMMING FROM THE 1986 SAN JUAN DUPONT PLAZA HOTEL FIRE BUT NOT THE ENTIRE COMMITTEE AS REPORTED IN THE LEGAL BEAT COLUMN DEC 16 JUDITH RESNIK WHOSE NAME WAS MISSPELLED IN THE ARTICLE ALSO REPRESENTED SOME MEMBERS OF THE COMMITTEE REZOUND INTERNATIONAL INC OF MINNEAPOLIS IS A COMPANY THAT DISTRIBUTES AUDIO BOOKS PRIMARILY FOR THE RENTAL MARKET IN A JAN 6 ARTICLE THE COMPANY'S NAME WAS MISSPELLED TREATMENT WITH THE DRUG GANCICLOVIR OF AN AIDSRELATED EYE INFECTION CYTOMEGALOVIRUS CAN COST AS MUCH AS 20000 TO 40000 A YEAR IN AN ARTICLE TUESDAY AN OFFICER OF CHIRON CORP INCORRECTLY SAID THE ANNUAL COST COULD REACH 100000 GEORGE L ARGYROS A REAL ESTATE DEVELOPER AND PRIVATE INVESTOR BOUGHT 403226 SHARES OF HAL INC ON NOV 10 INCREASING HIS HOLDINGS TO 703226 SHARES OR 123 OF THE COMPANY HE PREVIOUSLY OWNED 300000 SHARES BOUGHT IN DECEMBER 1989 AN ARTICLE MONDAY INCORRECTLY STATED THAT HE BOUGHT HIS ENTIRE STAKE IN LATE 1992 SEE HARDBALL BUYS STAKE IN PARENT OF HAWAIIAN AIR WSJ JAN 9301140143 930114 INTERNATIONAL BRIEF CIMENTS FRANCAIS SA MORE DIVESTMENTS ARE SAID TO BE PLANNED FOR THIS YEAR CEMENT PRODUCER CIMENTS FRANCAIS SA SAID IT RAISED MORE THAN 600 MILLION FRANCS 1083 MILLION FROM ASSET SALES AT THE END OF LAST YEAR AND INDICATED THAT MORE DIVESTMENTS ARE PLANNED IN 1993 CIMENTS FRANCAIS SAID THE SALES OF NONSTRATEGIC ASSETS WERE IN LINE WITH THE GROUP'S GOAL OF FOCUSING ON ITS CORE ACTIVITIES IT SAID THE SALES WILL LIGHTEN ITS STRUCTURE AND EASE THE BURDEN OF FINANCIAL CHARGES WHICH HAVE ALREADY BEEN REDUCED BY A FIVE BILLION FRANC CAPITAL BOOST IN JULY 1992 AND AN ISSUE OF 600 MILLION FRANCS OF CONVERTIBLE BONDS IN DECEMBER CIMENTS FRANCAIS WAS CONTROLLED BY CIE FINANCIERE DE PARIBAS BUT CONTROL WAS CEDED IN MID1992 TO ITALCEMENTI FABBRICHE RIUNITE CEMENTO SPA 9301140142 930114 INTERNATIONAL BRIEF SCANDINAVIAN AIRLINES SYSTEM DROP IN KRONA WILL RESULT IN A 1613 MILLION CHARGE SCANDINAVIAN AIRLINES SYSTEM SAID THE DROP IN THE SWEDISH KRONA'S VALUE SINCE IT WAS FLOATED IN NOVEMBER WILL RESULT IN A ONETIME FINANCIAL CHARGE OF 12 BILLION KRONOR 1613 MILLION AGAINST THE AIRLINE GROUP'S 1992 RESULTS THE FIGURE IS 450 MILLION KRONOR LARGER THAN A PREVIOUS ESTIMATE FOR THE LOSS EXPECTED AS A RESULT OF THE KRONA'S FLOTATION SAS IS HURT BY THE WEAKER KRONA BECAUSE A MAJOR PART OF ITS DEBT IN NONSWEDISH CURRENCIES HAS BEEN MAINTAINED TO CORRESPOND WITH THE AIRLINE'S FOREIGN REVENUE AND ASSETS SAS SAID IT TRANSFERRED A PORTION OF ITS FOREIGNCURRENCYDENOMINATED DEBT TO KRONOR DURING THE LAST FEW MONTHS OF 1992 WITHOUT WHICH CURRENCY LOSSES WOULD HAVE BEEN LARGER 9301140141 930114 BUSINESS BRIEF HARNISCHFEGER EXPECTS LOWER FISCAL '93 PROFIT THAN ANALYSTS PREDICT MILWAUKEE HARNISCHFEGER INDUSTRIES INC SAID ITS ESTIMATES FOR FISCAL 1993 EARNINGS ARE 20 TO 30 LOWER THAN ANALYSTS' FORECASTS OF PERSHARE PROFIT OF 150 A SHARE TO 160 A SHARE FOR THE YEAR ENDED OCT 31 1992 HARNISCHFEGER EARNED 567 MILLION OR 195 A SHARE ON SALES OF 138 BILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE HARNISCHFEGER'S DISCLOSURE SENT THE STOCK DOWN 2625 TO 17375 A SHARE DESPITE THE DIFFICULT YEAR IN 1993 THE COMPANY SAID ITS OUTLOOK FOR 1994 IS FOR A MUCH IMPROVED YEAR AS WE ANTICIPATE SUBSTANTIALLY STRONGER ORDERS FOR BELOIT CORP ITS PAPERMAKING MACHINERY UNIT DURING THE LATTER HALF OF 1993 AT THE BEGINNING OF FISCAL 1993 HARNISCHFEGER SAID BELOIT HAD A BACKLOG OF ORDERS TOTALING 4444 MILLION THE LOWEST LEVEL SINCE HARNISCHFEGER ACQUIRED THE COMPANY IN 1986 THE COMPANY SAID THE IMPROVEMENT WHILE EXPECTED LATER THIS YEAR WON'T SIGNIFICANTLY AFFECT EARNINGS POSITIVELY UNTIL 1994 BECAUSE OF THE LONG LEAD TIMES INVOLVED IN THE PRODUCTS HARNISCHFEGER SAID THE MARKETS FOR ITS OTHER BUSINESSES MINING MATERIAL HANDLING EQUIPMENT AND SYSTEMS INTEGRATION SERVICES ARE EXPECTED TO REMAIN STABLE 9301140140 930114 BUSINESS BRIEF FRANKLIN ELECTRONIC PUBLISHERS INC THIRDPERIOD NET ROSE 79 ON STRONG CHRISTMAS SALES FRANKLIN ELECTRONIC PUBLISHERS INC REPORTED THAT FISCAL THIRDQUARTER NET INCOME INCREASED 79 REFLECTING A STRONG CHRISTMAS SELLING SEASON NET ROSE TO 34 MILLION OR 45 CENTS A SHARE FROM THE YEAREARLIER 19 MILLION OR 28 CENTS A SHARE SALES ROSE 24 TO 208 MILLION FROM THE YEAREARLIER 167 MILLION SHARES OUTSTANDING ROSE TO 76 MILLION SHARES FROM 67 MILLION A YEAR EARLIER MORTON E DAVID CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE MOUNT HOLLY NJ COMPANY'S RECENTLY INTRODUCED DIGITAL BOOK SYSTEM WHICH ACCEPTS INTERCHANGEABLE MEMORY CARDS SHOULD BOOST POPULARITY OF ITS PRODUCTS HE SAID INITIAL SALES OF THE PRODUCT CONTRIBUTED TO THE LATEST QUARTER BUT THAT A CONSISTENT AND MEANINGFUL IMPACT FROM THE PRODUCT IS EXPECTED TO TAKE SOME TIME TO BUILD 9301140139 930114 TECHNOLOGY BRIEF MICROSOFT CORP LATEST VERSION OF FOXPRO TO START BEING SHIPPED SOON MICROSOFT CORP REDMOND WASH SAID IT SOON WILL BEGIN SHIPPING ITS FOXPRO VERSION 25 THE LATEST UPDATE OF ITS FAST PCBASED DATABASE MANAGEMENT PRODUCT FOXPRO 25 FOR THE WINDOWS OPERATING SYSTEM AND THE MSDOS OPERATING SYSTEM IS EXPECTED TO BE AVAILABLE COMMERCIALLY WITHIN A COUPLE OF WEEKS THE SOFTWARE MAKER ADDED THE COMPANY SAID THE SUGGESTED RETAIL PRICE OF FOXPRO 25 IS 495 FOR THE FIRST USER WITH ADDITIONAL LICENSES AT 425 USERS OF EARLIER VERSIONS OF THE SYSTEM CAN UPGRADE THEIR SOFTWARE TO VERSION 25 FOR 99 WITH FREE UPGRADES AVAILABLE FOR THOSE WHO BOUGHT THE PREVIOUS VERSION FOXPRO 20 AFTER JUNE 1 1992 9301140138 930114 LETTERS TO THE EDITOR GOD KNOWS SOMETIMES THINGS ARE JUST WRONG IN HIS DEC 7 EDITORIALPAGE ARTICLE FAMILY VALUES' NOT A POLITICAL ISSUE IRVING KRISTOL ADVISES PAT BUCHANAN AND OTHER CONSERVATIVES THAT THE CULTURE WARS ARE OVER AND THE LEFT HAS WON I AM REMINDED OF HOW IN 1940 CERTAIN BRITISH CONSERVATIVES ADVISED WINSTON CHURCHILL THAT WORLD WAR II WAS OVER AND THAT HITLER HAD WON ACCORDING TO MR KRISTOL MATTERS THAT RELATE TO ABORTION HOMOSEXUALITY ILLEGITIMACY AND SEXUAL PROMISCUITY POPULARLY REFERRED TO AS CHALLENGES TO TRADITIONAL FAMILY VALUES ARE PRIMARILY RELIGIOUS IN NATURE AND THEREFORE OUTSIDE POLITICS MR KRISTOL THINKS THAT IN THE POLITICAL ARENA WHERE RELIGION HAS NO PLACE SECULARISM HAS PREVAILED HE IMPLIES THAT THE SECULAR IS THE REALM OF THE RATIONAL AND THE RELIGIOUS OF THE IRRATIONAL THIS ANTITHESIS HOWEVER IS FALSE THE FIRST PLATFORM OF THE REPUBLICAN PARTY IN 1856 DENOUNCED THOSE TWIN RELICS OF BARBARISM SLAVERY AND POLYGAMY BOTH SLAVERY AND POLYGAMY WERE HELD TO BE INHERENTLY INCOMPATIBLE WITH HUMAN EQUALITY AND THE PRINCIPLES OF FREE GOVERNMENT THE PRINCIPLES OF NATURAL LAW ESPECIALLY AS SET FORTH IN THE DECLARATION OF INDEPENDENCE AND IN PARALLEL DECLARATIONS BY THE STATES HAVE ALWAYS BEEN REGARDED HISTORICALLY AS THE TEACHINGS OF BOTH REASON AND REVELATION NO INTERPRETATION OF SCRIPTURE THAT CONTRADICTED REASON WAS REGARDED AS VALID THE PROHIBITIONS AGAINST MURDER THEFT ADULTERY AND PERJURY WERE NOT THOUGHT TO REQUIRE A SPECIAL REVELATION FROM GOD FOR MAN TO KNOW THAT THEY WERE WRONG AND THAT HUMAN LAWS OUGHT TO PROHIBIT THEM WHAT MR KRISTOL CALLS SECULARISM IS IN FACT THE FORM THAT IRRATIONALISM TAKES IN OUR TIME THE CURRENT IDENTIFICATION OF FREEDOM OF CHOICE WITH FREEDOM FROM MORALITY CONTRADICTS ALL OUR HISTORIC TRADITIONS IN HIS FIRST INAUGURAL ADDRESS PRESIDENT GEORGE WASHINGTON DECLARED THAT THE FOUNDATIONS OF OUR NATIONAL POLICY WILL BE LAID IN THE PURE AND IMMUTABLE PRINCIPLES OF PRIVATE MORALITY SINCE THERE IS NO TRUTH MORE THOROUGHLY ESTABLISHED THAN THAT THERE EXISTS IN THE ECONOMY AND COURSE OF NATURE AN INDISSOLUBLE UNION BETWEEN VIRTUE AND HAPPINESS WE CANNOT SURRENDER THIS INHERITANCE WITHOUT SURRENDERING THE BLESSINGS OF AN ORDERED LIBERTY AS THEY WERE BEQUEATHED TO US BY OUR FATHERS WHO BROUGHT FORTH THIS NATION 9301140137 930114 SENATE STUDY ON VIETNAMWAR CAPTIVES CONCLUDES NO US POWS REMAIN ALIVE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NO COMPELLING EVIDENCE EXISTS THAT ANY US PRISONER OF WAR REMAINS ALIVE IN CAPTIVITY IN SOUTHEAST ASIA THE SENATE SELECT COMMITTEE ON POW/MIA AFFAIRS SAID AN UNUSUALLY EMOTIONAL AND NONPARTISAN SENATE COMMITTEE ALSO UNANIMOUSLY CONCLUDED THAT US OFFICIALS DIDN'T KNOWINGLY ABANDON POWS IN SOUTHEAST ASIA AFTER THE VIETNAM WAR BUT DID SHUNT ASIDE QUESTIONS ABOUT THEIR EXISTENCE THE BIGGEST SURPRISE COMING OUT OF THE COMMITTEE MAY HAVE BEEN THE SIGHT OF SENATORS ACROSS THE POLITICAL SPECTRUM FROM JOHN KERRY A LIBERAL DEMOCRAT FROM MASSACHUSETTS TO JESSE HELMS A CONSERVATIVE REPUBLICAN FROM NORTH CAROLINA AGREEING ON ONE OF THE MOST EMOTIONLADEN ISSUES IN MODERN US POLITICS THE FATE OF US POWS IN VIETNAM SEN HELMS SAID HE WAS SATISFIED THAT THIS IS AS GOOD A JOB AS COULD HAVE POSSIBLY BEEN DONE AND JOHN MCCAIN R ARIZ A FORMER NAVY PILOT WHO WAS A POW FOR FIVE YEARS IN NORTH VIETNAM CALLED THE REPORT THE WHOLE AND UNVARNISHED TRUTH DESPITE EVIDENCE TO THE CONTRARY THE PRESIDENT SAID AND OUR NATION WANTED TO BELIEVE THAT ALL OF OUR AMERICAN POWS WERE ON THE WAY HOME THE COMMITTEE SAID ALL BUT QUOTING A STATEMENT BY PRESIDENT RICHARD NIXON IN MARCH 1973 COMMITTEE CHAIRMAN KERRY A VIETNAM VETERAN INSISTED THAT THE PANEL WASN'T SEEKING TO SINGLE OUT MR NIXON OR HIS SECRETARY OF STATE HENRY KISSINGER WE SAY TO AMERICA THIS ISN'T A CASE OF BLAME FOR INDIVIDUALS HE SAID ALL OF US SHARE IN IT THE UNANIMITY OF THE COMMITTEE'S REPORT AND ITS PRAISE FOR RECENT COOPERATION FROM VIETNAM MAY EXPEDITE THE NORMALIZING OF RELATIONS BETWEEN THE US AND VIETNAM MOST OF THE CRITICISM IN THE REPORT IS DIRECTED AT TWO DIFFERENT TARGETS LAOS WHICH THE COMMITTEE SAID HAS BEEN FAR LESS FORTHCOMING THAN VIETNAM AND SOME GROUPS THAT HAVE RAISED FUNDS BY EXPLOITING FALSE EVIDENCE OF LIVE PRISONERS WHEN THE VIETNAM WAR ENDED US OFFICIALS HOPED THAT OF THE 317 US PERSONNEL UNACCOUNTED FOR IN LAOS ABOUT 40 WOULD BE RETURNED THEY WERE SURPRISED TO BE GIVEN ONLY 12 INDEED THE COMMITTEE SAID THE ONLY AMERICANS CAPTURED IN LAOS WHO WERE RETURNED WERE THOSE WHO IN FACT HAD EARLIER BEEN TRANSFERRED TO VIETNAM THE COMMITTEE CONCLUDED THAT THE CURRENT LEADERS OF LAOS ALMOST CERTAINLY HAVEN'T TOLD THE US ALL THEY KNOW ABOUT THE FATES OF CAPTURED AMERICANS THE COMMITTEE ALSO DENOUNCED GROUPS THAT HAVE SOUGHT TO EXPLOIT THE POW ISSUE FOR FINANCIAL OR POLITICAL GAIN THE CONSPIRACY CUPBOARD IS BARE IT SAID DISMISSING THE NOTION THAT SUCCESSIVE US ADMINISTRATIONS SOMEHOW COVERED UP EVIDENCE THAT POWS WERE ALIVE 9301140135 930114 CONNECTICUT TRIBE WINS RIGHT TO BEGIN USING SLOT MACHINES ACCORD ADDS TWIST TO FIGHT TO OPEN STATE TO CASINOS CHALLENGES ATLANTIC CITY BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL CONNECTICUT REACHED AN AGREEMENT WITH AN INDIAN TRIBE THAT WILL ALLOW SLOT MACHINES TO BEGIN OPERATING ON FRIDAY AT THE TRIBE'S FOXWOODS CASINO IN SOUTHEASTERN CONNECTICUT THE AGREEMENT REPRESENTS THE REGION'S FIRST DIRECT CHALLENGE TO THE SLOT GAMBLING BUSINESS IN ATLANTIC CITY NJ WHILE THE CONNECTICUT OPERATION ISN'T EXPECTED TO CUT DEEPLY INTO ATLANTIC CITY REVENUES ANYTIME SOON OPERATORS SAY IT SHOWS HOW THE PROLIFERATION OF LEGALIZED GAMBLING IS BEGINNING TO THREATEN THEIR FRANCHISE I THINK IT'S A BAD SIGN SAID KEVIN DESANCTIS PRESIDENT OF THE TRUMP PLAZA HOTEL & CASINO IN ATLANTIC CITY ATLANTIC CITY COULD BE OPEN TO SOME STRONG COMPETITION FROM THE STATE OF CONNECTICUT THE AGREEMENT ALSO REPRESENTS A COMPLICATED NEW TWIST IN THE BATTLE TO OPEN UP THE STATE TO CASINO GAMBLING CASINO OPERATORS WHO WOULD LIKE TO BASE FACILITIES IN BRIDGEPORT AND HARTFORD HAVE FACED OPPOSITION FROM GOV LOWELL WEICKER JR WHO HAS THREATENED TO VETO ANY SUCH MOVE HOWEVER THE FOXWOODS CASINO ON INDIAN LAND IS UNDER US DEPARTMENT OF INTERIOR REGULATION THE AGREEMENT REACHED BETWEEN GOV WEICKER AND THE MASHANTUCKET PEQUOT TRIBE NEAR LEDYARD CONN CALLS FOR THE STATE TO RECEIVE 25 OF THE REVENUE FROM THE FOXWOODS SLOT MACHINES THE TRIBE HAS GUARANTEED A MINIMUM PAYMENT OF 30 MILLION IN THE CURRENT FISCAL YEAR ENDING NEXT JUNE 30 AND 100 MILLION THE FOLLOWING YEAR THEREAFTER IF THE STATE'S ANNUAL DRAW DROPS BELOW 100 MILLION THE TRIBE WOULD TURN OVER 30 OF THE REVENUE BECAUSE THE AGREEMENT IS ONE OF THE FIRST IN WHICH A STATE WILL RECEIVE A CUT OF TRIBAL GAMBLING REVENUE IT'S LIKELY TO INFLUENCE THE SPREAD OF INDIAN GAMBLING IN OTHER STATES SOME CASINO LAWYERS QUESTION WHETHER SUCH ACCORDS ARE PERMISSIBLE UNDER INTERIOR DEPARTMENT REGULATIONS THE AGREEMENT RESOLVES A LONGSTANDING DISPUTE BETWEEN THE STATE AND THE TRIBE OVER THE RIGHT TO OPERATE SLOT MACHINES AND LIFTS A MORATORIUM THAT HAD PREVIOUSLY BLOCKED THE OPERATION OF SLOTS BY THE TRIBE GOV WEICKER SAID THE AGREEMENT PROVIDED THE STATE WITH SIGNIFICANT NEW REVENUE WITHOUT THE EXPANSION OF GAMBLING WITHIN THE STATE THE AGREEMENT ALSO SPECIFIES THAT IF THE STATE SUBSEQUENTLY PERMITS THE USE OF SLOT MACHINES ELSEWHERE THE TRIBE'S REVENUESHARING AGREEMENT WOULD BE VOID TO BE REPLACED BY REGULATIONS GOVERNING THE OTHER FACILITIES CASINO ANALYSTS SAID THAT PROVISION COULD STRENGTHEN GOV WEICKER'S STAND AGAINST GAMBLING IN BRIDGEPORT OR HARTFORD THE SITES OF SOME PROPOSALS HE CAN SAY THAT IF LEGISLATORS SAY YES TO BRIDGEPORT YOU HAVE TO GIVE UP 100 MILLION IN REVENUES NOTES LAWRENCE KLATZKIN A CASINO ANALYST FOR PRUDENTIAL SECURITIES INC THE REVENUE GUARANTEES MADE BY THE TRIBE FAR EXCEED THE 625 NEVADA TAX AND 8 NEW JERSEY TAX ON CASINO REVENUES ANALYSTS SAID IT WAS UNLIKELY THAT MANY OTHER OPERATORS WOULD BE WILLING TO AGREE TO SUCH AN ARRANGEMENT 9301140134 930114 TRAVEL NORTHWEST AIR CHANGES COURSE ON GROUP FARES BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL IN THE VOLATILE WORLD OF AIR FARES PROMISES ARE MADE TO BE BROKEN A DAY AFTER ESTABLISHING NEW FAMILY AND GROUP AIR FARES NORTHWEST AIRLINES ABRUPTLY CHANGED COURSE AND SHARPLY CURTAILED THE MARKETS THAT OFFER THE DISCOUNTED PRICES THE RETREAT BY NORTHWEST A UNIT OF WINGS HOLDINGS INC QUICKLY DEFUSED THE POSSIBILITY OF AN EARLY WINTER FARE WAR AND LEFT MANY CONSUMERS WITH THE SAME HIGHERPRICED FARES THAT WERE AVAILABLE AT THE START OF THE WEEK NORTHWEST WAS FORCED TO BACK DOWN FROM ITS EARLIER OFFER OF 20 TO 40 SAVINGS FOR GROUPS OF TWO OR MORE LARGELY BECAUSE DELTA AIR LINES HAD RESPONDED WITH A PLAN TO OFFER CUTS OF 30 TO 40 ON INDIVIDUAL TICKET PURCHASES IN MARKETS WHERE THE TWO AIRLINES COMPETE DELTA TOOK OUT A BIGGER STICK AND NORTHWEST BACKED OFF SAYS THOMAS LONGMAN AN AIRLINE ANALYST AT BEAR STEARNS & CO EARLIER THIS WEEK NORTHWEST SAID IT WOULD PERMANENTLY OFFER THE FARES IN 12000 DOMESTIC AND INTERNATIONAL MARKETS BUT PERMANENT MEANT TWO DAYS IN THIS CASE AND NOW BEGINNING ON MONDAY THE GROUP DISCOUNTS WILL ONLY BE AVAILABLE IN 400 MARKETS TO AND FROM NORTHWEST'S HUBS IN DETROIT MEMPHIS TENN AND MINNEAPOLIS ST PAUL MINN WE'RE PULLING BACK TO EXPERIMENT IN OUR HUB CITIES SAID A SPOKESMAN FOR NORTHWEST WHICH IS BASED IN ST PAUL A FEW TRANSCONTINENTAL MARKETS AND FLIGHTS TO HAWAII WILL ALSO INCLUDE THE OFFER HE SAID DELTA INTENDED TO OFFER ITS DISCOUNTS IN ABOUT 1800 MARKETS IN WHICH IT COMPETES WITH NORTHWEST BUT WITH NORTHWEST'S RETRENCHMENT IT APPEARS THAT DELTA'S OFFER WILL BE AVAILABLE IN EVEN FEWER MARKETS DELTA BASED IN ATLANTA WOULD NOT COMMENT ON WHAT EFFECT NORTHWEST'S LATEST MOVE MIGHT HAVE ON ITS OFFER WITH ITS RETRENCHMENT NORTHWEST IS VIRTUALLY CONCEDING THAT ONCE AGAIN IT HAS MISCALCULATED THE TICKET PRICING ENVIRONMENT IN THE INDUSTRY LAST SPRING NORTHWEST LAUNCHED A PROMOTION AIMED AT FAMILIES THAT EVENTUALLY LED TO LAST SUMMER'S FARE WARS AND CONSEQUENT LOSSES THROUGHOUT THE INDUSTRY WITH THE LATEST FARE INITIATIVE OUR INTENTION WAS NOT TO START A FIRE SALE A NORTHWEST SPOKESMAN SAID NORTHWEST DOESN'T WANT THAT TO HAPPEN SO WE THINK THE PRUDENT THING TO DO IS TO REDUCE THE SCOPE OF THE FARE OFFERING AFTER NORTHWEST ANNOUNCED THE DISCOUNTS OTHER AIRLINES BECAME CONCERNED THAT THE OFFER WAS TOO UNWIELDY AND MIGHT BECOME DIFFICULT FOR CONSUMERS AND TRAVEL AGENTS TO FOLLOW ALSO THERE WAS CONCERN THAT THE PROMOTION WOULD PROMPT TRAVELERS TO FORM AFFINITY GROUPS DESIGNED STRICTLY TO TAKE ADVANTAGE OF THE DISCOUNT INDEED THE NORTHWEST TAKE ALONG FARES WERE SO CONFUSING THAT EVEN THE AIRLINE'S ADVERTISING COPYWRITERS WERE CONFUSED TELEPHONE CALLS FROM ANGRY CUSTOMERS AND AT LEAST ONE STATE ATTORNEY GENERAL FORCED THE AIRLINE TO RELEASE A STATEMENT CLARIFYING NEWSPAPER ADVERTISEMENTS THAT WERE PUBLISHED ALL OVER THE COUNTRY TOUTING THE NEW FARES SINCE THE AIRLINES HAVE INTRODUCED THESE NEW VOLUME DISCOUNT AIR FARES I HAVE TO WORK WITH A COMPUTER AND A CALCULATOR KNOW HOW MANY PEOPLE ARE TRAVELING TOGETHER WHAT THE AGES OF THE TRAVELERS ARE IF THEY ARE TRAVELING ON A TUESDAY OR WEDNESDAY AND IF THEY WILL WEAR A RED HAT EVERY FIFTH TUESDAY QUIPPED TOM PARSONS PUBLISHER OF BEST FARES A DISCOUNT AIRFARES PUBLICATION UNITED AIRLINES A UNIT OF UAL CORP CONTINENTAL AIRLINES A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC AMR CORP'S AMERICAN AIRLINES AND USAIR GROUP INC'S USAIR HAD ALL OFFERED FARES THAT AT LEAST PARTLY MATCHED OFFERS BY NORTHWEST AND DELTA LATE YESTERDAY IT WASN'T CLEAR WHETHER THOSE OFFERS WOULD BE ALTERED BY NORTHWEST'S LATEST ACTION SOME INDUSTRY EXPERTS POINTED OUT THAT THIS WEEK'S PRICING SCENARIO HARKS BACK TO EARLIER CONCERNS THAT THE US JUSTICE DEPARTMENT HAS EXPRESSED OVER AIRLINES SIGNALING EACH OTHER ON THEIR PRICING INTENTIONS BUT AS INDUSTRY ANALYST MR LONGMAN POINTS OUT CARRIERS ARE NOW MAKING SURE THEY SIGNAL EACH OTHER PUBLICLY AS OPPOSED TO DOING IT PRIVATELY IN AIRLINE AIRFARE COMPUTER SYSTEMS 9301140133 930114 LETTERS TO THE EDITOR INDIA ROUGH ROAD TO A SWEET REWARD IN HIS DEC 31 COUNTERPOINT COLUMN INDIA THE UGLY RELIGIOUS REALITY BEHIND THE SECULAR MYTH IMRAN ANWAR COMPARES SOME HINDUS WITH THE NEONAZIS OF GERMANY WITH A SINGULAR INTENT OF DESTROYING THE MUSLIMS IN INDIA HOWEVER THE FACTS SHOW OTHERWISE SINCE INDEPENDENCE FROM THE BRITISH IN 1947 THE MUSLIM POPULATION IN INDIA HAS MORE THAN DOUBLED TO 90 MILLIONPLUS MUSLIMS IN INDIA HAVE ENJOYED APPOINTMENTS TO KEY GOVERNMENTAL AND MILITARY POSTS IN FACT INDIA HAS ELECTED TWO MUSLIM PRESIDENTS NO OTHER COUNTRY INCLUDING THE US HAS ELECTED A MINORITY AS ITS HEAD OF STATE MUSLIMS ARE ALLOWED TO PRACTICE THEIR RELIGION IN INDIA WITHOUT ANY INTERFERENCE INCLUDING THE RIGHT TO HAVE FOUR WIVES IT IS IRONIC THAT MUSLIMS IN ISLAMIC COUNTRIES SUCH AS PAKISTAN SAUDI ARABIA AND IRAN ARE QUICK TO DENOUNCE THE HINDUS BECAUSE OF THE DEC 6 DESTRUCTION OF THE BABRI MOSQUE IN AYODHYA WHILE THEIR OWN TRACK RECORD OF PROTECTING THE RIGHTS OF THE MINORITIES HAS BEEN DISMAL IN THESE COUNTRIES THE MINORITIES HAVE NO RIGHT TO VOTE AND IN SAUDI ARABIA NONMUSLIMS ARE PREVENTED FROM WORSHIPPING EVEN IN THEIR OWN HOMES MUSLIM RULERS OF INDIA HAD ALSO PURSUED SUCH POLICIES THE DESTRUCTION OF THE SOMNATH AND VISWANATH TEMPLES AND ASSASSINATION OF RELIGIOUS LEADERS SUCH AS GURU TEG BAHADUR SINGH ARE JUST A FEW EXAMPLES THE DESTRUCTION OF THE BABRI MOSQUE IS INDEED DEPLORABLE BUT IT IS NOT A REFLECTION OF THE HINDU TRADITION OR CULTURE JUST AS THE RODNEY KING INCIDENT IN THE US IS NOT A REFLECTION OF THE AMERICAN CULTURE OR TRADITION THE HINDUS HAVE A LONG HISTORY OF TOLERANCE TOWARD OTHER RELIGIONS AS LONG AS INDIA IS PREDOMINANTLY HINDU IT WILL REMAIN A SECULAR COUNTRY BY SELECTIVE CHOICE OF HISTORICAL EVENTS AND CAREFUL DISTORTION OF FACTS MR ANWAR HAS TRIED TO SMEAR INDIA'S LARGELY SUCCESSFUL EFFORTS IN SURVIVING AS A DEMOCRACY FOR MORE THAN 45 YEARS FOR MR ANWAR HERE ARE A COUPLE OF POINTS TO PONDER WHEN THE BRITISH PARTITIONED THE INDIAN SUBCONTINENT IN 1947 MORE MUSLIMS CHOSE TO MAKE THEIR HOME IN SECULAR INDIA RATHER THAN MIGRATE TO ISLAMIC PAKISTAN MANY WORKED THEIR WAY TO PROSPERITY ONE EVEN ROSE TO BECOME PRESIDENT OF INDIA IN 1947 MUSLIMS ON THE SUBCONTINENT HAD A CHOICE SECULAR INDIA OR ISLAMIC PAKISTAN ON THE OTHER HAND HINDUS IN WESTERN PUNJAB NOW PAKISTAN HAD NO CHOICE BUT TO LEAVE EVERYTHING BEHIND AND MOVE TO INDIA MY GREATGRANDFATHER MIGRATED TO INDIA LOSING EVERYTHING INCLUDING ALL HIS SIBLINGS TO THE MUSLIMS IN PAKISTAN THE LESSON OF INDIA'S LONG EXPERIMENT WITH DEMOCRACY IS ALL BUT LOST ON MR ANWAR THE ROAD TO DEMOCRACY FOR A COUNTRY AS LARGE AND DIVERSE AS INDIA HAS BEEN ROUGH AND PAINFUL THE REWARD HOWEVER IS SWEET PAKISTAN AND OTHER THIRD WORLD NATIONS WOULD DO WELL TO TAKE AND STAY THE COURSE OF DEMOCRATIZATION YOUR DEC 29 EDITORIAL INDIA'S DIFFICULT PROGRESS WAS RIGHT ON THE MONEY WHILE MR ANWAR'S COUNTERPOINT USED HALFTRUTHS IN HIS ATTEMPT TO PORTRAY THE WORST POSSIBLE PICTURE OF INDIA ANY SOCIETY THAT COMMITS ITSELF TO OVERCOME EXISTING RACIAL RELIGIOUS AND ECONOMIC INJUSTICES WILL SUFFER SETBACKS IN ITS ENDEAVORS ANCIENT HATREDS AND PREJUDICES ARE NOT OVERCOME EASILY ESPECIALLY IN A POOR COUNTRY EVEN RICH COUNTRIES SUCH AS THE US WITH THE BEST OF INTENTIONS STUMBLE ALONG THE PATH TO SOCIAL HARMONY AS THE NOTSODISTANT RIOTS IN LOS ANGELES ILLUSTRATED INDIA HAS FAR FEWER RESOURCES AND HAS TO OVERCOME PROBLEMS ROOTED IN THOUSANDS OF YEARS OF HISTORY THE BEST HOPE AS YOU POINTED OUT IS TO ENLARGE ECONOMIC OPPORTUNITY FOR EVERYONE THROUGH LIBERALIZATION OF THE INDIAN ECONOMY INDIA'S FUTURE LIES IN THE HANDS OF ITS GROWING ENTREPRENEURIAL MIDDLE CLASS 9301140132 930114 BUSINESS BRIEF KEYCORP FOURTHQUARTER PROFIT ROSE 23 ON INTERESTINCOME GAINS KEYCORP AN ALBANY NY MULTIREGIONAL BANKING COMPANY POSTED A 23 JUMP IN FOURTHQUARTER EARNINGS TO 653 MILLION PRIMARILY REFLECTING INTERESTINCOME GAINS PERSHARE EARNINGS TOTALED 84 CENTS IN LINE WITH ANALYSTS' EXPECTATIONS IN THE YEAREARLIER PERIOD KEYCORP EARNED 531 MILLION OR 68 CENTS A SHARE THE LATEST QUARTER ALSO INCLUDED A RESTRUCTURING CHARGE OF 68 MILLION RELATED TO ITS ACQUISITION OF PUGET SOUND BANCORP WHICH IS EXPECTED TO BE COMPLETED TOMORROW NET INTEREST INCOME ROSE 19 TO 3037 MILLION AS LOWER INTEREST RATES HELPED WIDEN INTEREST MARGINS OR THE DIFFERENCE IN THE BANK'S COST OF FUNDS COMPARED WITH WHAT THE BANK CHARGED ITS CUSTOMERS INCOME FROM FEES AND CHARGES ON BANKING SERVICES ALSO INCREASED BY 10 TO 874 MILLION KEYCORP STOCK WAS QUOTED AT 3775 DOWN 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9301140131 930114 WHO'S NEWS CBI INDUSTRIES INC CBI INDUSTRIES INC OAKBROOK ILL JOHN F RIORDAN 57 YEARS OLD WAS NAMED A DIRECTOR OF THIS CONSTRUCTION AND INDUSTRIAL GASES COMPANY MR RIORDAN IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MIDCON CORP A DIVERSIFIED NATURAL GAS PIPELINE COMPANY 9301140129 930114 FINANCING BUSINESS GUPTA CORP GUPTA CORP MENLO PARK CALIF SAID IF FILED A REGISTRATION STATEMENT FOR A PROPOSED INITIAL PUBLIC OFFERING THE OFFERING PRICE IS EXPECTED TO BE BETWEEN 10 AND 12 A SHARE THE COMPANY SAID WITH PROCEEDS USED FOR GENERAL CORPORATE PURPOSES COMANAGERS OF THE OFFERING WILL BE MORGAN STANLEY & CO AND HAMBRECHT & QUIST INC GUPTA IS A SOFTWARE MAKER FOR THE CLIENT/SERVER SYSTEMS MARKET 9301140128 930114 WHO'S NEWS BLACK & DECKER CORP BLACK & DECKER CORP TOWSON MD JAMES J LETO 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PRC INC A MCLEAN VA COMPUTER SYSTEMS UNIT OF THIS MAKER OF POWER TOOLS AND HOUSEHOLD APPLIANCES MR LETO HAD BEEN EXECUTIVE VICE PRESIDENT AND ACTING GENERAL MANAGER OF PRC SINCE SEPTEMBER AND SUCCEEDS GARY D KENNEDY 39 WHO HAD TAKEN A MEDICAL LEAVE OF ABSENCE AND DECIDED NOT TO RETURN TO PRC 9301140127 930114 TECHNOLOGY & MEDICINE LIMITED INC JOINS R&D CONSORTIUM SET TO RIVAL JAPAN RETAILER ACTS AS INDUSTRY PIONEER TO ALLY WITH COOPERATIVE OF MOSTLY COMPUTER FIRMS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL IN AN ODD CROSSINDUSTRY ALLIANCE THE LIMITED INC RETAILING CHAIN SAID IT HAS JOINED A TEXAS TECHNOLOGY CONSORTIUM FORMED TO COUNTER JAPANESE ADVANCES IN CUTTINGEDGE RESEARCH THE 4458STORE CHAIN IN COLUMBUS OHIO WHICH INCLUDES VICTORIA'S SECRET AND ABERCROMBIE & FITCH IS THE FIRST RETAILER TO JOIN THE MICROELECTRONICS AND COMPUTER TECHNOLOGY CORP AN AUSTIN TEXAS MEMBERSHIP COOPERATIVE DOMINATED BY COMPUTER AND SEMICONDUCTOR COMPANIES LIMITED WHICH WILL PAY A BASE RATE OF 25000 A YEAR TO BELONG TO THE CONSORTIUM AS AN ASSOCIATE MEMBER SAID IT JOINED THE GROUP AS PART OF A LONGSTANDING CORPORATE PUSH AIMED AT FOLDING PROMISING TECHNOLOGIES INTO THE COMPANY'S OPERATIONS THIS IS A WAY WE CAN GET A GOOD CROSSSECTION OF WHAT'S HAPPENING IN TECHNOLOGY IN OUR INDUSTRY SAID RICHARD L BRANUM EXECUTIVE VICE PRESIDENT OF THE LIMITED'S EXPRESS DIVISION THE CONSORTIUM SEEMS TO COVER THE WATERFRONT MCC AS THE GROUP IS KNOWN WAS LAUNCHED IN THE EARLY 1980S AMID GROWING FEARS THAT US COMPANIES WERE LOSING OUT TO JAPAN IN THE RACE TO DEVELOP HOT NEW COMPUTER TECHNOLOGIES THOUGH ITS INITIAL RESEARCH FOCUSED ON THE COMPUTER WORLD'S EXOTICA FROM ARTIFICIAL INTELLIGENCE AND COMPUTERCHIP PACKAGING TO DATASTORING HOLOGRAMS MCC HAS IN RECENT YEARS SHIFTED ITS WORK TOWARD TECHNOLOGIES WITH A BROADER APPEAL THE CONSORTIUM ALSO HAS REVAMPED ITS FEE STRUCTURE ENABLING COMPANIES TO PAY ONLY FOR THE TECHNOLOGY THEY USE INSTEAD OF HAVING TO BUY IN ON THE GROUP'S ENTIRE RESEARCH PACKAGE THOUGH LIMITED DECLINED TO SPECIFY WHICH MCC TECHNOLOGIES ATTRACTED IT TO THE CONSORTIUM IT IS LIKELY TO TAP INTO A RECENTLY ESTABLISHED MCC COMMERCIAL COMPUTER NETWORK FASHIONED AFTER THE PRODIGY AND COMPUSERVE NETWORKS THE MCC OFFERING IS DESIGNED TO ENABLE COMPANIES TO COMMUNICATE WITH THEIR SUPPLIERS AND CUSTOMERS OVER A SECURED NATIONAL DATA NETWORK MCC ALSO HAS BEGUN WORK ON A NATIONAL MULTIMEDIA INITIATIVE THAT WOULD ENABLE COMPANIES TO PIPE CONSUMER PRODUCTS LIKE VIDEO GAMES AND EDUCATIONAL SOFTWARE INTO THOUSANDS OF US HOMES THE TECHNOLOGY ALSO COULD BE USED BY RETAILERS LIKE LIMITED IN PROGRAMS THAT WOULD ENABLE CUSTOMERS TO ORDER CATALOGUE PRODUCTS WHILE SITTING IN FRONT OF THEIR HOME TV LIMITED DISTRIBUTES APPAREL NATIONWIDE THROUGH ITS VICTORIA'S SECRET LANE BRYANT DIRECT ROMAN'S AND LERNER DIRECT CATALOGUES 9301140126 930114 WHAT'S NEWS BUSINESS AND FINANCE INTEL POSTED A SURGE IN FOURTHQUARTER EARNINGS AND PROFIT MARGIN THAT SPARKED AN 8 JUMP IN ITS STOCK PRICE THE RESULTS INCLUDING NET INCOME OF 4286 MILLION EXCEEDED ANALYSTS' EXPECTATIONS AND WERE THE CLEAREST SIGNAL YET THAT THE SEMICONDUCTOR MAKER IS CONSOLIDATING ITS HUGELY PROFITABLE HEGEMONY OVER MUCH OF THE PERSONALCOMPUTER INDUSTRY MOTOROLA REPORTED AN UNEXPECTEDLY LARGE FOURTHQUARTER EARNINGS GAIN OF 44 TO 181 MILLION THE INCREASE REFLECTS THE CONCERN'S STRENGTHS IN CHIP AND CELLULAR TECHNOLOGY INTEL'S STRONG RESULTS ALLOWED INVESTORS TO SHRUG OFF THE ALLIED AIR STRIKE AGAINST IRAQ A TECHNOLOGYSTOCK RALLY LIFTED OTC STOCKS TO A RECORD BUT THE DOW JONES INDUSTRIALS FELL 108 POINTS TO 326356 BOND PRICES ROSE AND THE DOLLAR CLOSED MIXED OIL PRICES ENDED HIGHER AFTER VOLATILE TRADING CLINTON'S ECONOMIC PLAN IS LIKELY TO INCLUDE SOME MODEST SHORTTERM FISCAL STIMULUS ACCORDING TO STRONG SIGNALS GIVEN BY TWO OF THE PRESIDENTELECT'S TOP ADVISERS IN CONFIRMATION SESSIONS NORTHWEST AIRLINES SHARPLY LIMITED THE MARKETS THAT OFFER NEW FAMILY AND GROUP FARES THE MOVE CAME A DAY AFTER THE CARRIER INSTITUTED THE DISCOUNT RATES AND QUICKLY DEFUSED THE CHANCE OF AN EARLY WINTER FARE WAR THE IRS PROPOSED RULES THAT SHOULD GIVE MULTINATIONAL CORPORATIONS BOTH FOREIGN AND DOMESTIC MORE FLEXIBILITY IN ACCOUNTING FOR TRANSACTIONS MADE BETWEEN UNITS AT HOME AND ABROAD THE PACE OF DOMESTIC CAR AND LIGHTTRUCK SALES DECLINED IN EARLY JANUARY FROM THE PREVIOUS 30 DAYS WHEN CONSUMERS WERE RUSHING TO TAKE ADVANTAGE OF YEAREND PRICE WARS THE BIG BOARD WILL MAKE SIZABLE REBATES TO BROKERAGE FIRMS THAT MAKE SMALL TRADES FOR INVESTORS A BID BY THE EXCHANGE TO STEM A LONG SLIDE IN ITS SHARE OF STOCKMARKET TRADING AN INSTITUTIONAL INVESTOR GROUP WILL OPPOSE AN ACCOUNTING RULE THAT WOULD REQUIRE PUBLIC COMPANIES TO DEDUCT FROM THEIR EARNINGS THE VALUE OF STOCK OPTIONS GRANTED TO EXECUTIVES NBC IS WIDELY EXPECTED TODAY TO ANNOUNCE THAT IT WON'T MAKE A COUNTEROFFER TO STOP DAVID LETTERMAN FROM ACCEPTING CBS'S BID OF 28 MILLION OVER TWO YEARS TO HOST A NEW LATENIGHT SHOW IN THE 1130 PM TIME SLOT OLYMPIA & YORK'S BIG UNSECURED CREDITORS MAY END UP WITH LESS CONTROL OF THE INSOLVENT REAL ESTATE COMPANY THAN WAS PREVIOUSLY THOUGHT BECAUSE OF US TAX CONSIDERATIONS FEDERAL EXPRESS FACES A CLOSE CONTEST TODAY AS PILOTS VOTE ON UNIONIZATION AT THE AIREXPRESS CONCERN WHICH HAS LONG AND SUCCESSFULLY OPPOSED ORGANIZED LABOR WITHIN ITS RANKS THE FORMER SOVIET UNION'S DEBTRESCHEDULING TALKS WITH THE WEST ARE BEING DELAYED BY A DISPUTE BETWEEN RUSSIA AND UKRAINE THE SQUABBLE IS ALSO DISRUPTING GRAIN AND CREDIT INFLOWS VOLKSWAGEN SLOWED ITS MASSIVE INVESTMENT PROGRAM ALSO ACCORDING TO ONE REPORT EUROPE'S LARGEST CAR MAKER IS ACCELERATING ITS PLANS TO SHED THOUSANDS OF WORKERS AROUND THE WORLD ITT IS PLANNING MAJOR CHANGES AT THE TROUBLED CONSUMER BANKING OPERATION OF ITS ITT FINANCIAL SUBSIDIARY POSSIBLY SELLING THE OPERATION OR TAKING A SIZABLE WRITEOFF FOR BAD LOANS PEOPLE FAMILIAR WITH THE COMPANY SAID TOKYO STOCKS FELL ON MIDEAST TENSIONS THE NIKKEI INDEX DROPPED 16314 POINTS TO 1651791 LONDON AND FRANKFURT SHARES ALSO CLOSED LOWER FUTURES ON CHEDDAR CHEESE AND POWDERED MILK ARE SLATED BY THE COFFEE SUGAR AND COCOA EXCHANGE IN AN EFFORT TO DEVELOP NEW PRODUCTS FOR THE EXCHANGE WHOSE VOLUME HAS FALLEN BONDS LEHMAN BROTHERS TREASURY INDEX 469457 UP 2269 COMMODITIES OIL 1850 A BARREL UP 12 CENTS DOW JONES FUTURES INDEX 12294 OFF 017 SPOT INDEX 12362 OFF 011 DOLLAR 12565 YEN UP 045 16234 MARKS OFF 00073 9301140125 930114 BUSINESS BRIEF GENERAL MOTORS CORP HUGHES AIRCRAFT TO PROVIDE SATELLITE SERVICES TO CONCERN HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP SAID IT AGREED TO PROVIDE SATELLITE SERVICES FOR TV ANSWER INC AN INTERACTIVETELEVISION CONCERN PRIVATELY HELD TV ANSWER BASED IN RESTON VA PLANS TO USE A NATIONWIDE SYSTEM OF 1400 SMALL HUGHESBUILT SATELLITE DISHES TO RECEIVE SIGNALS FROM HOMES BEGINNING LATE THIS YEAR CUSTOMERS WOULD BUY TV TRANSMISSION BOXES NOW IN DEVELOPMENT BY HEWLETTPACKARD CO OF PALO ALTO CALIF AT A COST EXPECTED TO BE LESS THAN 500 EACH USERS WOULDN'T PAY A SUBSCRIBER FEE TO ORDER GOODS AND SERVICES RANGING FROM PIZZADELIVERY AND BILLPAYING TO COLLEGETESTING TV ANSWER AND HUGHES PLAN TO ANNOUNCE THEIR CONTRACT TODAY NEITHER COMPANY STATED THE VALUE OF THE CONTRACT HOWEVER A PERSON FAMILIAR WITH THE DEAL SAID IT IS VALUED AT MORE THAN 15 MILLION DAVID LEHMAN TV ANSWER PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE CONTRACT WITH HUGHES IS CRITICAL TO CONTINUED TESTING AND A TIMELY STARTUP OF THE SYSTEM 9301140124 930114 CORPORATE FOCUS BIDDERS LOOK AT ROHR AS AEROSPACE INDUSTRY SHRINKS FIRM ISN'T SEEKING A BUYER BUT CHAIRMAN'S RETIREMENT MAKES IT A TARGET BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL NOW MORE THAN EVER ROHR INC LOOKS RIPE FOR THE PICKING THE CHULA VISTA CALIF AIRCRAFTPARTS MAKER SAYS PUBLICLY THAT IT ISN'T LOOKING FOR A BUYER BUT WITH LAST WEEK'S ANNOUNCEMENT OF THE EARLY RETIREMENT OF ITS CHAIRMAN ROHR SEEMS A LIKELY CANDIDATE FOR ABSORPTION BY A LARGER COMPANY IN THE CONSOLIDATING AEROSPACE INDUSTRY FORESHADOWING THE INDUSTRY'S INTEREST ONE FEELER ABOUT A MAJOR EQUITY INFUSION IN THE COMPANY HAS ALREADY BEEN REJECTED BY ROHR'S MANAGEMENT ACCORDING TO A PERSON FAMILIAR WITH THE SITUATION ROHR WON'T DISCUSS IT CITING A POLICY NOT TO COMMENT OR SPECULATE ON RUMORS OF SUCH OFFERS OR TAKEOVER ATTEMPTS ADDING TO ROHR'S ATTRACTIVENESS AMONG OTHER COMPANIES MAY BE A RISING EXPECTATION AT THE COMPANY THAT IT WILL AVOID A FEDERAL INDICTMENT IN THE WAKE OF A PARTSTESTING INVESTIGATION ROHR WHICH HAD SAID IN FEBRUARY 1992 THAT IT EXPECTED TO BE INDICTED NOW SEES ITSELF AS BEING ABLE TO NEGOTIATE ITS WAY OUT INSTEAD WE BELIEVE THAT WE WILL COME TO SOME KIND OF SETTLEMENT SAYS ROBERT H GOLDSMITH WHO GAVE UP THE POSTS OF CHAIRMAN AND CHIEF EXECUTIVE BUT REMAINS ON ROHR'S BOARD HE SAYS SETTLEMENT OF THE CASE WHICH INVOLVES A RIVERSIDE CALIF PLANT THAT MAKES F14 FIGHTER AND AIR FORCE C5 TRANSPORTPLANE PARTS COULD COME IN THE NEXT SEVERAL MONTHS REPRESENTATIVES OF THE US ATTORNEY'S OFFICE IN LOS ANGELES WHICH LAST YEAR CONFIRMED THAT A GRAND JURY WAS CONSIDERING INFORMATION ABOUT ALLEGEDLY DEFECTIVE TESTING AT ROHR COULDN'T BE REACHED TO COMMENT YESTERDAY ROHR NOW SAYS IT HOPES TO BEGIN SERIOUS SETTLEMENT DISCUSSIONS AFTER MEETING WITH THE US ATTORNEY IN THE NEXT FEW WEEKS MR GOLDSMITH SAYS THE COMPANY'S OWN STUDY OF TESTING PROBLEMS SHOWED THAT THERE WAS NO PURPOSEFUL MISCHIEF INVOLVED AND NOBODY WAS HARMED JAMES J KERLEY THE 70YEAROLD DIRECTOR WHO TOOK OVER ON AN INTERIM BASIS FOR MR GOLDSMITH 62 SAYS ROHR HASN'T RECEIVED ANY BUYOUT OFFERS AND ISN'T SEEKING THEM THE ANSWERS TO THOSE QUESTIONS ARE NO AND NO HE SAYS IN AN INTERVIEW THOUGH HE ADDS THAT ROHR'S DETERMINATION TO GO IT ALONE COULD CHANGE IF THE COMPANY GETS AN OFFER THAT WOULD BENEFIT SHAREHOLDERS THE REJECTED EQUITYINFUSION OFFER REPORTEDLY CAME LAST MONTH FROM A GROUP OF THREE PARTNERS THAT INCLUDED WASHINGTON DC INVESTMENT FIRM CARLYLE GROUP THE OFFER PROPOSED AN INJECTION OF 150 MILLION INTO ROHR BY THE PARTNERSHIP IN EXCHANGE FOR CONVERTIBLE PREFERRED STOCK ACCORDING TO A PERSON FAMILIAR WITH THE PROPOSAL THE PARTNERSHIP OF CARLYLE ONE US AND ONE EUROPEAN COMPANY WOULD HAVE BOUGHT ABOUT A ONETHIRD INTEREST IN ROHR THE PROPOSAL ALSO REPORTEDLY ENVISIONED DRAWING DOWN 150 MILLION OF DEBT AND REPLACING IT WITH 150 MILLION IN A NEW LONGTERM DEBT ISSUE WITH BETTER TERMS AND GAINING REPRESENTATION FOR THE PARTNERSHIP ON ROHR'S 11MEMBER BOARD ROHR'S REJECTION SAID THE PERSON WITH KNOWLEDGE OF THE DEAL WAS ON GROUNDS THAT THE COMPANY WOULD BE SELLING ITSELF TOO CHEAPLY AT THE THENCURRENT STOCK PRICE OF AROUND 11 A SHARE THE PARTNERSHIP'S PRICE FOR THE ONETHIRD INTEREST REPRESENTED A 15 TO 20 PREMIUM OVER THE STOCK PRICE AT THE TIME YESTERDAY THE STOCK CLOSED AT 12 UP 125 CENTS THE US COMPANY PREPARED TO TEAM WITH CARLYLE IS BELIEVED TO HAVE BEEN NORTHROP CORP WHICH LAST YEAR TEAMED WITH CARLYLE TO BUY A MINORITY STAKE IN LTV CORP'S AIRCRAFT DIVISION A NORTHROP SPOKESMAN WON'T COMMENT ON WHETHER THERE IS ANY INTEREST IN ROHR BUT THE LOS ANGELES COMPANY HASN'T MADE A SECRET OF ITS DESIRE TO EXPAND COMMERCIAL JETLINER WORK AS DEFENSE BUSINESS SHRINKS THE EUROPEAN COMPANY IS BELIEVED TO BE A PARISBASED CONSORTIUM CALLED EURONACELLE NEWLY FORMED BY ALENIA OF ITALY AND HISPANOSUIZA PART OF THE FRENCH SNECMA GROUP A CARLYLE EXECUTIVE WOULDN'T COMMENT A BIG DRAWBACK FOR ANY POTENTIAL BUYER IS ROHR'S CONSIDERABLE DEBT MR KERLEY ESTIMATES TOTAL DEBT AT 700 MILLION AGAINST 450 MILLION IN TOTAL EQUITY AND BLAMES MUCH OF THE BURDEN ON THE COMPANY'S EXPANSION IN THE 1980S WE TOOK ON A LARGE AMOUNT OF PRODUCTION RISK THAT REQUIRED A GREAT DEAL MORE INVESTMENT WE DIDN'T ANALYZE THE CAPITAL STRUCTURE REQUIREMENTS AS CAREFULLY AS WE MIGHT HAVE HE SAYS STILL ANALYSTS GENERALLY DESCRIBE ROHR AS A STRONG NICHE PLAYER IN AEROSPACE ROHR HAS CONSIDERABLE POTENTIAL LOOKING AHEAD FOR THE NEXT 20 YEARS SAYS WOLFGANG DEMISCH AN ANALYST AT UBS SECURITIES THE ENGINES AND PROGRAMS THAT THEY'RE ON WILL GENERATE A STRONG AND LONGTERM REVENUE BASE MARTIN MARIETTA CORP A ROHR COMPETITOR WOULD HAVE BEEN ANOTHER LOGICAL PARTNER WERE IT NOT FOR THE BETHESDA MD DEFENSE CONTRACTOR'S EXPENSIVE DRIVE TO ACQUIRE GENERAL ELECTRIC CO'S AEROSPACE DIVISION A MARTIN MARIETTA SPOKESMAN SAYS HE CAN'T CONFIRM OR DENY THAT HIS COMPANY HAS CONSIDERED BUYING AN INTEREST IN ROHR BUT ADDS THAT RIGHT NOW WE ARE TOTALLY FOCUSED ON GE AEROSPACE BECAUSE OF ROHR'S 43 SHARE OF THE WORLDWIDE MARKET FOR NACELLES THE HOUSINGS FOR JET ENGINES MORE OFFERS WOULDN'T BE A SURPRISE THE COMPANY'S OTHER MAIN PRODUCTS INCLUDE PYLONS WHICH CONNECT ENGINES TO THE AIRPLANE AMONG ROHR'S MORE VALUABLE PROGRAMS ARE ENGINE OPTIONS ON ALL AIRBUS INDUSTRIE A320 AND A321 JETS AND THRUST REVERSERS AND FAN COWLS FOR BOEING CO'S 757 PLANE BUT IN ADDITION TO ROHR'S HIGH DEBT LEVEL AND THE CONTINUING AIRLINE INDUSTRY SLUMP THE COMPANY HAS HAD TROUBLE FIRMING UP ITS TOP MANAGEMENT PRIOR TO MR GOLDSMITH'S DECISION TO LEAVE AFTER TWO YEARS OF AN EXPECTED FIVEYEAR TERM AS CHAIRMAN ELLEN RICHSTONE LEFT AS CHIEF FINANCIAL OFFICER IN MIDOCTOBER AFTER SIX MONTHS ON THE JOB THE SHORTTERM OUTLOOK WAS GLOOMY AT ROHR'S ANNUAL MEETING IN DECEMBER EXECUTIVES SAID FISCAL 1993 SALES COULD BE 10 LOWER THAN THE 128 BILLION IN THE JULY 31 1992 YEAR AND TALKED OF TRIMMING THE WORK FORCE BY ABOUT 2000 OVER TWO TO THREE YEARS REFLECTING ORDER CUTBACKS AT FISCAL YEAR END ROHR HAD 9230 EMPLOYEES DOWN FROM MORE THAN 11000 IN AUGUST 1991 ROHR WHICH TOOK A 50 MILLION PRETAX PROVISION LAST YEAR FOR PROBLEM PROGRAMS ALSO FACES AS MUCH AS 59 MILLION IN DAMAGES OVER A WRONGFUL TERMINATION SUIT AND IN NOVEMBER THE COMPANY LOST A LUCRATIVE PRATT & WHITNEY ENGINE NACELLE CONTRACT TO MARTIN MARIETTA MORALE IS LOW AT THE COMPANY ACCORDING TO ONE MIDLEVEL MANAGER WHO ASKED NOT TO BE IDENTIFIED LAST YEAR MR GOLDSMITH MADE A SPEECH SAYING IN THE NEXT YEAR SOME OF YOU WON'T BE HERE THE EMPLOYEE SAID HE SHOULD HAVE SAID SOME OF US MR GOLDSMITH SAYS HE IS LEAVING TO MAKE IT CLEAR TO THE WORLD THAT THE JOB IS OPEN SPARING ROHR THE TASK OF RECRUITING A SUCCESSOR WHO WOULD HAVE TO WAIT SEVERAL YEARS FOR THE POSITION BUT SOME ANALYSTS AND INDUSTRY OBSERVERS SEE MR GOLDSMITH'S DEPARTURE AS AN OPEN INVITATION TO TAKE OVER THE COMPANY IT'S JUST A MATTER OF TIME PREDICTS DAVID SMITH A WASHINGTON CONSULTANT YOU HAVE A LOW STOCK PRICE A MANAGEMENT SHAKEUP AN OUTSIDE DIRECTOR IN CONTROL IRATE SHAREHOLDERS ONE AND ONE USUALLY MAKES TWO WITH A CONSOLIDATING INDUSTRY THE STRONG SURVIVORS ARE GOING TO EAT THESE GUYS 9301140123 930114 REVIEW & OUTLOOK EDITORIAL ASIDES DEEPER AND DEEPER THE TRANSIT FIASCO IN LOS ANGELES CONTINUES THE EASTWEST GREEN LINE THE ONE INVOLVED IN THE SUMITOMOBUY AMERICA DISPUTE IS APPARENTLY NOT GOING TO HAVE DRIVERLESS CARS AFTER ALL MORE THAN 60 MILLION WAS SPENT TO EQUIP THE ABOVEGROUND ROUTE FOR THIS INNOVATION BUT THE POLITICIANS ARE BACKING OFF AS THEY DID FROM THE ORIGINAL SUMITOMO PACT THE TECHNOLOGY MAKES THEM NERVOUS AS DO UNION OBJECTIONS THE SAME THING HAPPENED WITH BART IN THE SAN FRANCISCO AREA YEARS AGO BUT HOOPLA NOT COSTS WILL BE THE STORY WHEN A SHORT SECTION OF THE LA SYSTEM'S RED LINE SUBWAY DOWNTOWN OPENS IN A FEW WEEKS 9301140122 930114 WASHINGTON FEDERAL DEADLINE WASHINGTON WASHINGTON FEDERAL SAVINGS BANK SAID THE OFFICE OF THRIFT SUPERVISION EXTENDED THE BANK'S CAPITAL DIRECTIVE COMPLIANCE DATE TO MARCH 15 FROM MAY 31 1992 THE BANK SAID THE EXTENSION WILL ALLOW MORE TIME TO RAISE CAPITAL TO REQUIRED LEVELS THE BANK MUST RAISE THE NEEDED CAPITAL ON OR BEFORE THE NEW DATE OR BE SUBJECT TO REGULATORY ACTIONS WHICH COULD INCLUDE SEIZURE OR A FORCED MERGER WITH ANOTHER INSTITUTION IT SAID SUCH A MERGER WOULD MORE THAN LIKELY HARM CURRENT SHAREHOLDERS THE SAVINGS BANK HAD TOTAL ASSETS OF 697 MILLION AT DEC 31 9301140121 930114 TECHNOLOGY & MEDICINE FDA SAYS LABELS OF FERTILITY DRUGS MUST WARN USERS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION IS REQUIRING MAKERS OF CERTAIN FERTILITY DRUGS TO ADD INFORMATION TO THEIR LABELS ON THE POSSIBLE LINK BETWEEN THE DRUGS AND OVARIAN CANCER THE DRUGS ARE PERGONAL AND SEROPHENE MADE BY SERONO LABORATORIES INC A UNIT OF THE SWISS COMPANY ARESSERONO SA AND CLOMIPHENE CITRATE MADE BY MARION MERRELL DOW INC IN ORDERING THE LABELING CHANGE THE FDA CITED RECENT DATA INDICATING THAT THE ASSOCIATION BETWEEN FERTILITY DRUGS AND OVARIAN CANCER MAY BE STRONGER THAN PREVIOUSLY BELIEVED THE AGENCY ALSO CITED SOME REPORTS IT HAS RECEIVED INDEPENDENTLY ABOUT THESE SPECIFIC DRUGS IN PARTICULAR AN ARTICLE ON THE SUBJECT IN YESTERDAY'S AMERICAN JOURNAL OF EPIDEMIOLOGY SUGGESTED THAT FERTILITY DRUGS MAY INCREASE BY THREE TIMES THE RISK OF DEVELOPING THE CANCER THE ARTICLE DIDN'T MENTION ANY DRUGS SPECIFICALLY THE FDA SAID THE STANFORD UNIVERSITY MEDICAL CENTER RESEARCHERS WHO CONDUCTED THE STUDY CAUTIONED THAT THE FINDING WAS BASED ON LIMITED DATA OF 12 STUDIES IN THE RESEARCH PROJECT ON OVARIAN CANCER ONLY THREE CONTAINED DATA ABOUT THE USE OF FERTILITY DRUGS OUR FINDING IN REGARD TO FERTILITY DRUGS IS BY NO MEANS CERTAIN SAID ALICE WHITTEMORE AN EPIDEMIOLOGY PROFESSOR AT THE STANFORD MEDICAL SCHOOL AND LEAD AUTHOR OF THE STUDIES IT IS BASED ON VERY SMALL NUMBERS AND IS REALLY VERY TENUOUS THE USE OF FERTILITY DRUGS WASN'T APPRECIABLY RELATED TO OVARIAN CANCER IN WOMEN WHO HAD EXPERIENCED ONE OR MORE PREGNANCIES BEFORE HAVING INFERTILITY PROBLEMS THE FDA SAID THERE'S ALWAYS A QUESTION OF HOW MUCH EVIDENCE YOU NEED BEFORE YOU ALERT WOMEN TO A POTENTIAL RISK SAID FDA COMMISSIONER DAVID KESSLER EVEN THOUGH THE EPIDEMIOLOGY STUDY IS STILL PRELIMINARY WOMEN HAVE A RIGHT TO KNOW WHAT IS KNOWN WE'RE NOT LOOKING TO MAKE MORE OF THIS THAN THERE IS IN A STATEMENT THE NATIONAL CANCER INSTITUTE SAID FURTHER RESEARCH IS NEEDED TO CONFIRM WHETHER THE DRUGS ACTUALLY CAUSE OVARIAN CANCER AND TO IDENTIFY THE SPECIFIC DRUGS AND TYPES OF INFERTILITY THAT MAY BE ASSOCIATED WITH THE INCREASE IN RISK THE STANFORD STUDY ALSO FOUND THAT THE RISK OF OVARIAN CANCER DECLINED FOR WOMEN WITH EACH PREGNANCY THEY EXPERIENCED AND WITH THE USE OF ORAL CONTRACEPTIVES THE RESEARCHERS SAID BREAST FEEDING MAY REDUCE THE RISK AS WELL EACH OF THESE FACTORS IS ASSOCIATED WITH PREVENTING OVULATION THE FDA SAID THE LABELING CHANGE WOULD AFFECT THE SECTION OF THE LABEL DEALING WITH ADVERSE REACTIONS NO CHANGE IS BEING SOUGHT IN PRESCRIBING DIRECTIONS A SPOKESMAN FOR MARION MERRELL DOW SAID THE COMPANY IS IN THE PROCESS OF MAKING THE LABEL CHANGE ARESSERONO COULDN'T BE REACHED TO COMMENT 9301140120 930114 INTERNATIONAL BRAZIL PAYS BANKS TOTAL OF 170 MILLION IN OVERDUE INTEREST SPECIAL TO THE WALL STREET JOURNAL BRASILIA BRAZIL PAID FOREIGN BANKS 170 MILLION IN OVERDUE INTEREST THIS WEEK A FINANCE MINISTRY SPOKESMAN SAID THE GOVERNMENT SAID THE PAYMENT IS HALF OF WHAT BRAZIL OWES UNDER A PRELIMINARY 1992 AGREEMENT WITH PRIVATE CREDITORS THE OTHER HALF IS TO BE PAID IN TWO INSTALLMENTS AFTER 95 OF THE BANKS ENDORSE THE ACCORD THE AGREEMENT PROPOSES NEW TERMS FOR PAYING SOME 44 BILLION THAT BRAZIL OWES TO PRIVATE BANKS THE COUNTRY'S TOTAL FOREIGN DEBT IS ABOUT 102 BILLION BRAZIL WILL PAY A TOTAL OF 44 BILLION THIS YEAR IN INTEREST UNDER THE TERMS BRAZIL AGREED TO PAY MORE OF THE INTEREST THAT IT HAS WITHHELD SINCE 1991 THE GOVERNMENT HAD BEEN PAYING 30 OF THE INTEREST DURING THAT TIME AND NOW WILL PAY A TOTAL OF 50 OF THE INTEREST SINCE 1991 THE AGREEMENT RATIFIED BY THE BRAZILIAN SENATE IN DECEMBER INCLUDES A MENU OF OPTIONS FOR PAYMENT RANGING FROM A DISCOUNT OF AS MUCH AS 35 TO EXTENDED PAYMENT OVER 20 YEARS LATER THIS MONTH BRAZILIAN AND FOREIGN DEBT NEGOTIATORS ARE TO START SHIPPING THE AGREEMENT TO HUNDREDS OF CREDITOR BANKSA CAMPAIGN THAT HAS BEEN DUBBED THE ROAD SHOW 9301140119 930114 ENTERPRISE ENTREPRENEUR'S TENACITY BECOMES A PATTERN FOR SUCCESS FABULOUS FURS SURVIVES WITH A THREADTHIN BUDGET AND A BOLD SPIRIT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL COVINGTON KY OPERATING OUT OF AN OLD BUILDING IN THE HILLS OF KENTUCKY DONNA SALYERS IS MAKING A MARK IN THE CUTTHROAT WORLD OF SEWING FASHION PATTERNS MADE BY FABULOUS FURS HER UPSTART FIRM APPEAR IN VOGUE'S CATALOGS ALONGSIDE PATTERNS FROM CALVIN KLEIN AND RALPH LAUREN SOME HOLLYWOOD STARS CLAMOR FOR MS SALYERS TO SEW FAKE FUR COATS FOR THEM AND NEXT FALL SHE WILL COHOST A SEWING SHOW ON THE PUBLIC BROADCASTING SERVICE YET MS SALYERS A FORMER NEWSPAPER COLUMNIST DIDN'T HAVE A STITCH OF PROFESSIONAL BUSINESS EXPERIENCE WHEN SHE LAUNCHED HER PATTERN BUSINESS IN 1989 MOREOVER SHE SAYS THAT SHE SPENT JUST 50000 PROMOTING HER PRODUCTS IN THE FIRST YEAR LIKE MANY NEW BUSINESS OWNERS THE 47YEAROLD ENTREPRENEUR FOUND THAT WHAT SHE LACKED IN CASH AND BUSINESS KNOWHOW SHE COULD MAKE UP FOR IN BRASS AND TENACITY SHE DOESN'T STOP TILL SHE GETS WHAT SHE WANTS OBSERVES ART JOINNIDES SENIOR VICE PRESIDENT OF BUTTERICK CO WHICH PRODUCES VOGUE'S PATTERN CATALOG MR JOINNIDES SAYS HE AGREED TO PUT MS SALYER'S FAKE FUR PATTERNS IN THE CATALOG LAST YEAR AFTER GETTING ALMOST WEEKLY CALLS FROM HER FOR THREE YEARS FABULOUS FURS' MAILORDER SALES REACHED 1 MILLION IN 1992 UP FROM 125000 IN 1989 MS SALYERS SAYS THE FIRM BROKE EVEN BUT BARELY IN 1991 SHE ADDS LAST YEAR SHE HIRED A NATIONAL SALES DIRECTOR AND REGIONAL SALES REPRESENTATIVES IN 15 CITIES NOW SHE IS EXPANDING BEYOND PATTERN KITS TO READYMADE FAKE FUR COATS AND FAKE LEATHER KITS FOR JACKETS AND SKIRTS MS SALYERS ATTRIBUTES HER COMPANY'S RAPID GROWTH LARGELY TO HER HANDSON MARKETING STYLE I THINK THAT HAS EVERYTHING TO DO WITH IT SHE SAYS TO PUSH HER KITS SHE ONCE DRESSED HER TEENAGE DAUGHTER AND SEVERAL FRIENDS IN FAKE FUR COATS SO THEY COULD HAND OUT SALES BROCHURES IN NEARBY DOWNTOWN CINCINNATI BUT PART OF HER POPULARITY COULD BE ATTRIBUTED TO THE AVERSION MANY PEOPLE HAVE TO WEARING REAL FUR AND WHILE MARKETING EXPERTS APPLAUD MS SALYERS'S SPIRIT THEY NOTE LIMITATIONS OF THE APPROACH HOW MUCH OF THIS CAN SHE DO ASKS DAVE REIBSTEIN A MARKETING PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL OF BUSINESS MS SALYERS MAY HAVE TO REDUCE HER PERSONAL INVOLVEMENT IN PROMOTION AS SHE ASSUMES MORE ADMINISTRATIVE DUTIES IN THE EXPANDING BUSINESS YOU DO LOSE SOMETHING IF YOU'RE NOT CAREFUL WARNS WENDY LIEBMANN OF WSL MARKETING A NEW YORK CONSULTING FIRM BIGGER COMPANIES ALSO NEED SOMEWHAT MORE SOPHISTICATED MARKETING TO BROADEN THEIR CUSTOMER BASE MS LIEBMANN ADDS IN THE LATE 1970S MS SALYERS TURNED A CHILDHOOD SEWING HOBBY INTO A COLUMN FOR THE CINCINNATI ENQUIRER SHE SAYS THAT SHE REPEATEDLY WROTE SYNDICATION SERVICES AND A FEW YEARS LATER HER COLUMN WAS SYNDICATED NATIONALLY THE COLUMN LED TO A TWOYEAR STINT AS A HOST FOR A SEWING TELEVISION SHOW ON THE CHRISTIAN BROADCASTING NETWORK MS SALYERS REMEMBERS ENVYING WOMEN WEARING FUR COATS WHEN SHE TRAVELED TO NEW YORK FOR HER SHOW I FELT LIKE THE POOR COUNTRY MOUSE SHE RECOLLECTS WITH MONEY TIGHT SHE BOUGHT A BATCH OF FAKE FUR AND SEWED HER OWN COAT THE CREATION GARNERED COMPLIMENTS BUT THE COAT LOOKED WORN AFTER FIVE YEARS AND SHE DECIDED TO BUY A REAL FUR WHILE DRIVING TO A CINCINNATI STORE IN JANUARY 1988 MS SALYERS SAYS SHE HEARD RADIO BROADCASTER PAUL HARVEY DESCRIBE A FIRM THAT USED KITTEN FUR TO MAKE TEDDY BEARS I THOUGHT OH MY GOD WHAT IF YOU GET A KITTY COAT' FIGURING THAT OTHERS PROBABLY WOULD SHARE HER SHOCKED RESPONSE SHE DECIDED TO SELL PATTERN KITS FOR FAKE FUR COATS ELEVEN MONTHS AND 2000 LATER SHE WAS IN BUSINESS AFTER SHE FAILED TO DRUM UP MUCH BUSINESS AT A TRADE SHOW MS SALYERS BEGAN PLACING SMALL ADS IN SEWING MAGAZINES SUCH AS SEW NEWS SHE SAYS THAT SHE PERSUADED SEW NEWS TO FEATURE ONE OF HER COATS FUR COAT EXCLUSIVE THE DECEMBER 1988 COVER READ SEW IT FAUX AND SAVE SHE ALSO WROTE TO MR HARVEY SAYING THAT HIS BROADCAST HAD INSPIRED HER COMPANY'S LAUNCH HE BROADCAST A PIECE ON FABULOUS FURS IN JULY 1989 TO WIDEN HER PRODUCT'S EXPOSURE MS SALYERS SAYS SHE SENT COATS MADE FROM HER PATTERNS TO SEVERAL CELEBRITIES INCLUDING IVANA TRUMP AND SYNDICATED TV TALKSHOW HOST SALLY JESSY RAPHAEL FABULOUS FURS' BIGGEST SUCCESS WITH CELEBRITIES CAME WHEN ACTRESS LORETTA SWIT READ A NEWSPAPER ARTICLE ABOUT THE FIRM ACCORDING TO MS SALYERS THE ACTRESS THEN CALLED AND ASKED MS SALYERS TO MAKE A COAT FOR HER BECAUSE SHE COULDN'T SEW MS SALYERS SAYS THE ACTRESS SUBSEQUENTLY MENTIONED FABULOUS FURS ON THE TV SHOW ENTERTAINMENT TONIGHT MS SALYERS SAYS SHE ALSO PEDDLED FABULOUS FURS BY WRITING EVERY SOAP OPERA ANOTHER WORLD RECENTLY BOUGHT A 100INCHLONG CAPE DESIGNED BY MS SALYERS FOR A COMING EPISODE A WARDROBE OFFICIAL SAYS DESPITE HER SUCCESS SO FAR MS SALYERS CONCEDES THAT MARKETING NAIVETE HAS CAUSED HER TO STUMBLE AT TIMES SHE SPENT THOUSANDS OF DOLLARS ON NATIONWIDE NEWSPAPER ADVERTISEMENTS WITH DISMAL RESPONSE FROM SUCH A BROAD MARKET SHE RECALLS LAST YEAR SHE PAID A PUBLICITY AGENT 10000 TO GET HER INTERVIEWED ON RADIO TALK SHOWS AGAIN SHE REACHED A HUGE MARKET BUT FEW HOME SEWERS SHE SAYS HER BIGGEST MARKETING SNAFU CAME IN 1990 WHEN SHE SPENT 45000 ON AN INFOMERCIAL AND AN ADDITIONAL 150000 TO BUILD INVENTORY FOR ORDERS THAT NEVER MATERIALIZED THE SETBACK PROMPTED HER BANK TO CALL IN HER 150000 SHORTTERM LOAN SHE SAYS HER HUSBAND JIM A REAL ESTATE BROKER SAVED THE BUSINESS BY PAYING OFF THE LOAN MS SALYERS REMEMBERS THAT WAS MY GIFT SHE SAYS THE BANK'S ACTION SHOULD HAVE TAKEN ME UNDER NOW FABULOUS FURS IS PLUNGING INTO THE MUCH BIGGER MARKET FOR READYMADE FAKE FUR COATS THE FIRM ONLY WILL MAKE COATS AFTER RECEIVING ORDERS AND WILL SELL THEM FOR 500 TO 700 EACH THE SWITCH IS A QUANTUM LEAP MS SALYERS CONCEDES BUT A NECESSARY ONE IF WE WANT TO GROW 9301140118 930114 POLITICS & POLICY REPRESENTATIVE FROM HILLARY CLINTON'S BROTHERS ASKS FIRMS TO FINANCE PARTIES BY JEFFREY H BIRNBAUM AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON A REPRESENTATIVE OF HILLARY CLINTON'S TWO BROTHERS HAS BEEN SOLICITING SOME OF AMERICA'S TOP CORPORATIONS FOR FUNDS TO UNDERWRITE INAUGURAL PARTIES THAT THE BROTHERS HOPE TO HOLD NEXT WEEK FORD MOTOR CO MOBIL CORP AND CHEVRON CORP WERE APPROACHED BY THOMAS MELLON A DOYLESTOWN PA ATTORNEY WHO IS WORKING TO FIND FUNDS FOR THE BROTHERS' PARTIES BUT ALL THREE DECLINED TO CONTRIBUTE THEY SAID OTHER MAJOR CORPORATIONS ALSO WERE SOLICITED ACCORDING TO LOBBYISTS HERE MR MELLON DIDN'T RETURN TELEPHONE CALLS YESTERDAY BUT HUGH RODHAM ONE OF HILLARY CLINTON'S BROTHERS SAID IN A TELEPHONE INTERVIEW HE WAS AWARE THAT MR MELLON WAS TRYING TO LINE UP SPONSORS FOR AT LEAST TWO EVENTS TO FETE FAMILY MEMBERS AND VOLUNTEERS WHO HAD WORKED ON THE CLINTON CAMPAIGN WITH HIM AND HIS BROTHER TONY HE ALSO SAID HE SEES NOTHING WRONG WITH THE EFFORT WE OBVIOUSLY NEED TO PAY FOR IT SOMEHOW HUGH RODHAM SAID I DON'T SEE IT AS A CONFLICT AT ALL BUT FOR OTHERS THE QUESTION OF WHETHER CORPORATIONS SHOULD SPONSOR INAUGURALTIME FESTIVITIES HAS BECOME ENORMOUSLY CONTROVERSIAL BOWING TO A PUBLIC OUTCRY COMMERCE SECRETARYDESIGNATE RONALD BROWN YESTERDAY CANCELED THREE DINNERS THAT WERE PAID FOR IN HIS HONOR BY A BEVY OF BIGNAME CORPORATIONS AND UNIONS INCLUDING JC PENNEY CO ANHEUSERBUSCH COS AND SONY CORP ALTHOUGH MR BROWN'S OFFICE CONTINUED TO DEFEND THE FESTIVITIES AS APPROPRIATE A SPOKESWOMAN SAID THE CABINET APPOINTEE DIDN'T WANT ANY FURTHER DISTRACTIONS TO THE INAUGURATION AND ABRUPTLY TERMINATED ALL THREE EVENTS WHICH WERE PLANNED TO BE PART OF NEXT WEEK'S MANY CELEBRATIONS MR RODHAM IS STILL EAGER TO HAVE HIS EVENTS AND HE WILL KNOW FOR SURE IF THEY WILL BE HELD HE SAID AFTER HE MEETS WITH MR MELLON SUNDAY HE'S TRYING TO FIND THE FUNDS TO PAY FOR THE ROOM MR RODHAM SAID WE'RE JUST SMALL FRIES THAT'S ALL WE ARE STILL MR RODHAM'S REPRESENTATIVE APPARENTLY WAS TALKING BIG TO EXECUTIVES AT SOME OF THE NATION'S MAJOR CORPORATIONS LUDDY HAYDEN CHEVRON'S FEDERAL RELATIONS REPRESENTATIVE HERE SAID HE TALKED BY TELEPHONE TO MR MELLON TUESDAY IN THAT CONVERSATION HE RECALLED MR MELLON INDICATED THAT HE WAS CALLING ON BEHALF OF THE FAMILY OF HILLARY CLINTON MR MELLON SAID HE WAS CONTACTING THE TOP 10 CORPORATIONS IN AMERICA AND WAS ASKING THEM TO CONTRIBUTE TO THE TUNE OF 10000 EACH TO SPONSOR A SET OF EVENTS INCLUDING A DINNER DANCE A DINNER A BRUNCH AND A BREAKFAST ACCORDING TO THE CHEVRON EXECUTIVE IN EXCHANGE FOR THE SPONSORSHIP MR HAYDEN SAID THE CORPORATIONS WOULD BE GIVEN SPACE IN A SKYBOX OVERLOOKING THE DINNER DANCE IN A WASHINGTON HOTEL SUNDAY NIGHT AND WOULD GET TICKETS TO THE THREE OTHER EVENTS WHICH CLINTON FAMILY MEMBERS WERE EXPECTED TO ATTEND ACCORDING TO MR HAYDEN MR MELLON DIDN'T PROMISE THAT EITHER THE PRESIDENTELECT OR HIS WIFE WOULD BE THERE IT WASN'T CLEAR HOW MANY COMPANIES WERE CONTACTED BY MR MELLON SOME COMPANIES THAT USUALLY APPEAR ON LISTS OF THE TOP 10 US CORPORATIONS DU PONT CO AND PHILIP MORRIS COS FOR EXAMPLE SAID THEY HADN'T BEEN SOLICITED MR RODHAM WHO IS DEPUTY DIRECTOR OF THE PUBLIC DEFENDER'S OFFICE IN MIAMI SAID THE CLINTON CAMP WAS UNAWARE OF THE SOLICITATIONS AND THAT IT'S NO BIG DEAL THE EVENTS HE SAID ARE MEANT TO BE PERSONAL THANK YOUS TO PEOPLE WHO WERE CLOSE TO THEM DURING THE CAMPAIGN AND HE WANTS TO KEEP THEM SMALL THE LESS PEOPLE KNOW ABOUT IT THE BETTER HE SAID SEPARATELY MICHAEL WALDMAN AN AIDE TO MR CLINTON SAID AN EFFORT TO TIGHTEN DISCLOSURE REQUIREMENTS ON LOBBYISTS AND AN OVERHAUL OF CAMPAIGNFINANCE LAWS CONTINUE TO BE PRIORITIES FOR THE INCOMING ADMINISTRATION THE CLINTON TRANSITION TEAM HAS SENT A POLICY PAPER TO THE PRESIDENTELECT OUTLINING SEVERAL OPTIONS IN THESE AREAS FOR CARRYING OUT HIS CAMPAIGN PLEDGES WHICH INCLUDE ELIMINATING THE TAX DEDUCTION FOR CORPORATE LOBBYING EXPENSES MR CLINTON'S AIDES SAID THEY ARE DISCUSSING THE PROPOSAL WITH DEMOCRATIC LEADERS IN THE HOUSE AND SENATE SOME OF THOSE LEADERS EXPRESS CONCERN THAT CLUTTERING MR CLINTON'S AGENDA WITH SUCH MATTERS COULD HURT WHAT SHOULD BE HIGHERPRIORITY ITEMS SUCH AS AN ECONOMICRECOVERY BILL AND AN OVERHAUL OF THE US HEALTHCARE SYSTEM STILL IF MR CLINTON DOES PUSH A PLAN IT WOULD BE EXPECTED TO AIM TO MAKE TELEVISION AND RADIO MORE ACCESSIBLE TO ELECTION CANDIDATES TO REDUCE THE AMOUNT OF CONTRIBUTIONS THAT POLITICAL ACTION COMMITTEES CAN MAKE AND TO ESTABLISH SPENDING LIMITS ON LOBBYING MR CLINTON IS EXPECTED TO ENDORSE A TOUGH DISCLOSURE LAW SPONSORED BY SEN CARL LEVIN D MICH AND TO MAKE ADDITIONAL PROPOSALS 9301140117 930114 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN HONG KONG LEGISLATORS REJECTED A CHINESEBACKED PROPOSAL THAT URGED GOV CHRIS PATTEN TO SCRAP HIS POLITICAL REFORM CAMPAIGN AND CONSULT WITH BEIJING THE LEGISLATIVE COUNCIL'S 352 VOTE CLEARED THE WAY FOR A SHOWDOWN NEXT MONTH ON ACCEPTING REJECTING OR MODIFYING MR PATTEN'S PLAN TO INCREASE THE NUMBER OF ELECTED LEGISLATORS AND WIDEN THE VOTER BASE FOR THE 1995 ELECTIONS THE ACTION ALSO SIGNALED LEGISLATORS' INSISTENCE ON A ROLE IN AFFAIRS OF THE BRITISH COLONY BEFORE IT REVERTS TO CHINA IN 1997 MR PATTEN HAD ENCOURAGED LEGISLATORS TO RATIFY PROPOSALS SATISFACTORY TO BOTH CHINA AND BRITAIN BUT CHINA HAS SAID IT WOULD REJECT ANY APPROVAL BY HONG KONG'S LEGISLATURE OF MR PATTEN'S REFORMS EVEN IN DILUTED FORM SAYING THEY VIOLATE PREVIOUS SINOBRITISH ACCORDS CHINA HAS THREATENED TO REPLACE THE COLONY'S GOVERNMENT AND VOID ANY CONTRACTS SIGNED WITHOUT BEIJING'S APPROVAL RUSSIA'S ECONOMIC STRATEGIST CRITICIZED PRIME MINISTER VIKTOR CHERNOMYRDIN'S RESTORATION OF SOME PRICE CONTROLS AND SAID ENFORCEMENT WILL BE DIFFICULT DEPUTY PRIME MINISTER BORIS FYODOROV'S STANCE EXPOSED INFIGHTING IN THE NEW CABINET MR CHERNOMYRDIN'S DECREE REGULATES PRICES OF BREAD MACARONI TEA SALT SUGAR MILK MEAT BUTTER SAUSAGE BABY FOOD AND VODKA HE DEFENDED THE ATTEMPT TO CONTROL SPIRALING PRICES INFLATION SOARED TO 2000 LAST YEAR DURING THE TRANSITION TO A MARKET ECONOMY BUT WESTERN AND RUSSIAN ECONOMISTS SAID ENFORCING THE CONTROLS COULD DEVASTATE THE STRUGGLING ECONOMY CONSUMER PRICES IN INDUSTRIALIZED COUNTRIES ROSE 01 IN NOVEMBER SLOWING FROM A 03 INCREASE IN THE PREVIOUS MONTH THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID A DECLINE OF 02 IN JAPANESE RETAIL PRICES WAS OFFSET BY INCREASES OF 01 IN THE US AND 02 IN EUROPE IN THE 12 MONTHS ENDED NOV 30 CONSUMER PRICES ROSE 29 DECELERATING FROM 31 IN OCTOBER AND MARKING THE FIRST TIME SINCE MARCH 1987 THAT THE OECD INFLATION RATE CAME IN BELOW 3 MALAYSIA'S FINANCE MINISTRY ROLLED BACK RESTRICTIONS IT IMPOSED ON VEHICLE FINANCING IN AUGUST 1991 THE MEASURES WHICH LIMITED FINANCING TO 75 OF THE PURCHASE PRICE AND CAPPED LOAN TERMS AT FOUR YEARS WERE PART OF CREDITTIGHTENING MEASURES TO FIGHT INFLATION AS A RESULT GROWTH OF CREDIT AND AUTO SALES FELL SHARPLY AND VEHICLE INVENTORIES SWELLED THE ROLLBACK THOUGH WASN'T VIEWED AS A HARBINGER OF A BROADER EASING OF MALAYSIA'S CREDIT POLICY OR LOWER INTEREST RATES FOREIGN INVESTMENT IN TAIWAN FELL 18 LAST YEAR TO A FOURYEAR LOW OF 146 BILLION FROM 1991 BUT THE DECLINE IN PROJECT APPROVALS REVERSED TOWARD YEAR END INVESTMENT IN DECEMBER SOARED 140 TO 280 MILLION FROM NOVEMBER THE ELECTRONICS AND ELECTRIC APPLIANCE INDUSTRY ATTRACTED 323 MILLION OR 22 OF THE 1992 TOTAL THE SERVICE INDUSTRY ACCOUNTED FOR 17 THE TRADE SECTOR 15 FINANCE AND INSURANCE 13 AND CHEMICALS 73 JAPANESE INVESTED THE MOST 418 MILLION DOWN 21 FROM 1991 AND EUROPEANS POURED IN 204 MILLION OFF 81 INVESTMENTS FROM THE US SKIDDED 69 TO 184 MILLION THOUGH THE GERMAN ECONOMY SLOWED AGAIN IN THE FOURTH QUARTER OFFICIALS REJECTED CRITICISM THAT GOVERNMENT POLICIES WERE DISRUPTING EUROPEAN UNITY AND SLOWING THE GLOBAL RECOVERY PRELIMINARY DATA SHOWED WESTERN GERMANY'S GROSS DOMESTIC PRODUCT DECLINED MODERATELY THE THIRD CONSECUTIVE QUARTER OF SLOWING GROWTH HELD THE REGION'S GDP RISE TO 15 FOR 1992 DOWN SHARPLY FROM 37 IN 1991 AND 51 IN THE 1990 REUNIFICATION BOOM EASTERN GERMANY'S GDP EXPANDED 61 SHORT OF THE 10 TARGET AS INVESTMENT IN RESTRUCTURING SLOWED SLUGGISH EXPORTS AND HIGH INTEREST RATES HAVE DEPRESSED CONSUMER CONFIDENCE AND THROWN WESTERN GERMAN BUSINESSES INTO DEFENSIVE STRATEGIES LAST YEAR PRIVATE CONSUMPTION GROWTH SLOWED TO 09 FROM 36 A YEAR EARLIER AND CAPITAL SPENDING FELL 21 AFTER A 91 RISE SEPARATELY HELMUT SCHLESINGER THE CENTRAL BANK PRESIDENT HINTED LENDING RATES COULD BE EASED IN ACKNOWLEDGING THE ECONOMY COULD SHRINK MORE IN THE FIRST HALF ICELAND A EUROPEAN FREE TRADE ASSOCIATION MEMBER AGREED TO PARTICIPATE WITH THE EUROPEAN COMMUNITY IN THE VAST NEW EUROPEAN ECONOMIC AREA CANADA'S ECONOMY WILL GROW BETWEEN 25 AND 3 THIS YEAR SPURRED BY A REBOUNDING US AN EXPECTED 16 INFLATION RATE LOW INTEREST RATES AND BOLSTERED CONSUMER CONFIDENCE THE CANADIAN CHAMBER OF COMMERCE PREDICTED THE GOVERNMENT EXPECTS 25 GROWTH UP FROM A 1 RISE LAST YEAR 9301140115 930114 MULTINATIONAL TRANSFER RULES OFFERED BY IRS POLITICALLY SENSITIVE MOVE COVERS FIRMS' METHODS USED FOR PRICING ASSETS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DIPPING INTO A POLITICALLY SENSITIVE AREA THE INTERNAL REVENUE SERVICE PROPOSED REGULATIONS THAT SHOULD GIVE MULTINATIONAL CORPORATIONS MORE FLEXIBILITY IN ACCOUNTING FOR TRANSACTIONS MADE BETWEEN UNITS AT HOME AND ABROAD THE RULES WHICH AFFECT DOMESTIC AND FOREIGN COMPANIES ARE DESIGNED TO CLARIFY HOW TO APPLY VARIOUS METHODS FOR PRICING ASSETS THAT ARE TRANSFERRED WITHIN A COMPANY THE RULES WOULD REPLACE GUIDELINES THAT HAVE BEEN ON THE BOOKS SINCE 1968 AND IN THE EYES OF MANY ARE NO LONGER EQUIPPED TO DEAL WITH A BUSINESS WORLD THAT HAS GROWN INCREASINGLY GLOBAL AND HIGHTECH THIS NORMALLY OBSCURE AREA OF TAX REGULATION KNOWN AS TRANSFERPRICING WAS CAST IN THE SPOTLIGHT BY BILL CLINTON DURING THE PRESIDENTIAL CAMPAIGN AS PART OF HIS EARLY ECONOMIC PROGRAM MR CLINTON ESTIMATED THAT HE COULD COLLECT 45 BILLION OVER FOUR YEARS BY CRACKING DOWN ON FOREIGN COMPANIES THAT MANIPULATE THEIR TRANSFER PRICES AND THEREBY HOLD DOWN THEIR TAX LIABILITIES TO UNCLE SAM MANY TAX EXPERTS HOWEVER FEEL THE 45 BILLION FIGURE IS FAR TOO HIGH THE NEW REGULATIONS ARE TO GO INTO EFFECT 90 DAYS AFTER THEIR OFFICIAL PUBLICATION TREASURY OFFICIALS SAID THIS WILL GIVE THE NEW ADMINISTRATION THE OPPORTUNITY TO LEAVE THEM IN PLACE MODIFY THEM OR REVOKE THEM COMPLETELY A YEAR AGO THE TREASURY DEPARTMENT PROPOSED A SET OF TRANSFERPRICING RULES BUT THEY WERE ROUNDLY CRITICIZED BY THE BUSINESS COMMUNITY IN ADDITION TREASURY OFFICIALS WERE INUNDATED WITH COMPLAINTS FROM FOREIGN GOVERNMENTS WHICH QUESTIONED WHETHER THE PROPOSAL VIOLATED BILATERAL TAX TREATIES MOST OBJECTIONABLE IN THE EYES OF CRITICS WAS A TEST THAT WAS SUPPOSED TO ENSURE THAT ALL TANGIBLE GOODS AND MOST INTANGIBLE PROPERTY HAD BEEN PRICED PROPERLY ESSENTIALLY THIS TEST FORCED COMPANIES TO CHECK THE PROFITS EARNED FROM SUCH TRANSACTIONS AGAINST AN INDUSTRY AVERAGE IF THEIR EARNINGS WEREN'T IN LINE COMPANIES WERE DEEMED TO BE ESTABLISHING THEIR TRANSFER PRICES INCORRECTLY AND COULD BE PENALIZED BUT COMPANIES QUESTIONED HOW THEY COULD OBTAIN RELIABLE INDUSTRY DATA IN THE FIRST PLACE AND MORE GENERALLY WHETHER THIS TEST WAS FAIR MANY GROUSED THAT IT DEPARTED FROM THE LONGESTABLISHED ARMSLENGTH STANDARD WHICH SAYS THAT AN ASSET TRANSFERRED ON AN INTRACOMPANY BASIS SHOULD CARRY THE SAME PRICE AS IF IT HAD BEEN SOLD TO AN UNRELATED THIRD PARTY THE NEWLY PROPOSED RULES BY CONTRAST DON'T REQUIRE THAT SUCH A TEST HAS TO BE USED AND THEREFORE SHOULD GIVE COMPANIES MUCH MORE LATITUDE IN HOW THEY DO THEIR ACCOUNTING THE THRUST OF THE REGULATIONS IS TO GIVE COMPANIES MORE FLEXIBILITY IN CHOOSING WHICH PRICING METHOD TO USE ALAN WILENSKY THE ACTING ASSISTANT TREASURY SECRETARY FOR TAX POLICY SAID IN AN INTERVIEW AT THE SAME TIME HOWEVER THE RULES DO REQUIRE THAT THE PRICING METHOD CHOSEN BY A COMPANY BE THE ONE THAT MOST ACCURATELY REFLECTS THE AMOUNT OF CAPITAL EMPLOYED FUNCTIONS PERFORMED AND THE RISKS ASSUMED BY THE TAXPAYERS INVOLVED IN THE TRANSACTION WE'RE NOT GIVING TAXPAYERS CARTE BLANCHE MR WILENSKY EXPLAINED IT COULDN'T IMMEDIATELY BE DETERMINED HOW CORPORATIONS WOULD REACT TO THE PROPOSED RULES REPRESENTATIVES OF MANY MULTINATIONAL CONCERNS WERE STILL SCRAMBLING TO OBTAIN THE 146PAGE REGULATIONS WHICH WEREN'T RELEASED UNTIL LATE YESTERDAY AFTERNOON ONE INTERNATIONAL TAX EXPERT WHO HAD MANAGED TO SEE THE RULES ED REAVEY OF COOPERS & LYBRAND SAID HIS INITIAL REACTION IS THAT THEY ARE POSITIVE FOR CORPORATE TAXPAYERS MULTINATIONAL COMPANIES WILL CERTAINLY BE PLEASED WITH THESE AS COMPARED TO WHAT WAS ISSUED A YEAR AGO HE SAID THESE ARE A LIBERALIZATION MR WILENSKY SAID THE NEW RULES ALSO ENCOURAGE FOR THE FIRST TIME THAT COMPANIES DISCLOSE TO THE GOVERNMENT UP FRONT WHAT PRICING METHOD THEY ARE USING IN FACT A SEPARATE SET OF PROVISIONS THAT THE IRS ALSO ISSUED YESTERDAY STATES THAT IF A REASONABLE TRANSFERPRICING METHOD IS EMPLOYED AT THE OUTSET THEN THE PENALTIES IMPOSED IN THE EVENT OF AN ERROR WON'T BE SO SEVERE UNLIKE LEGISLATION REGULATIONS AREN'T ACCOMPANIED BY SPECIFIC REVENUE ESTIMATES STILL TREASURY OFFICIALS SAID THEY HOPED THE NEW RULES IF ACCEPTED BY THE CLINTON CAMPWOULD SPUR COMPLIANCE AND BRING IN MORE REVENUE TO THE TREASURY EVEN SO MANY EXPERTS ARE SURE TO KEEP QUESTIONING THE VALIDITY OF MR CLINTON'S 45 BILLION CLAIM WHILE SOME TRANSFERPRICING ABUSE BY FOREIGN COMPANIES UNDOUBTEDLY OCCURS THEY SAY THE GOVERNMENT WOULD BE ABLE TO BRING IN NO MORE THAN A COUPLE OF BILLION DOLLARS A YEAR THROUGH ENHANCED ENFORCEMENT 9301140114 930114 FINANCING BUSINESS HAVERFIELD CORP HAVERFIELD CORP CLEVELAND SAID IT PLANS TO OFFER 100000 SHARES OF COMMON STOCK AND 4 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES THE OFFERING HASN'T BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION BUT HAVERFIELD EXPECTS TO COMPLETE THE OFFERING DURING THE SECOND QUARTER OF THIS YEAR PROCEEDS WOULD BE USED TO BUY CAPITAL STOCK OF HAVERFIELD'S PRINCIPAL UNIT HOME FEDERAL SAVINGS BANK NORTHERN OHIO TO SUPPLEMENT THE BANK'S CAPITAL BASE HOME FEDERAL IS A MORTGAGE LENDER 9301140113 930114 LETTERS TO THE EDITOR THE RISKS IN PREDICTING SEX OFFENDERS' VIOLENCE IN YOUR DEC 8 PAGEONE ARTICLE BURDEN OF PROOF CAN SEXUAL PREDATORS' BE HELD AFTER SERVING THEIR PRISON TERMS I WAS MISQUOTED CONCERNING THE ABILITY OF MENTAL HEALTH PROFESSIONALS TO PREDICT THE FUTURE VIOLENCE OF SEX OFFENDERS AFTER THE STORY REFERS TO STUDIES THAT SHOW THAT SUCH PREDICTIONS ARE ACCURATE IN ONLY ONE OUT OF THREE CASES I AM QUOTED AS SAYING YOU'D DO BETTER IF YOU FLIPPED A COIN BUT THIS IS NOT WHAT I SAID AND THE INFERENCE THAT PREDICTIONS BY PROFESSIONALS DO LESS WELL THAN CHANCE IS NOT NECESSARILY ACCURATE ALTHOUGH I AM CRITICAL OF PREVENTIVE DETENTION BASED ON PROFESSIONALS' ABILITY TO PREDICT VIOLENCE I EXPLAINED TO YOUR REPORTER THAT WHETHER THESE PREDICTIONS DID LESS WELL THAN CHANCE DEPENDS ON THE BASE RATE OF THE TARGET BEHAVIOR AMONG THE SUBJECTS BEING EVALUATED FOR EXAMPLE IF ONE IN 10 SEX OFFENDERS WILL ACTUALLY OFFEND AGAIN THEN THE CHANCE PREDICTION WOULD BE ACCURATE IN ONLY ONE OUT OF 10 CASES THUS PROFESSIONAL PREDICTIONS THAT WERE ACCURATE THREE IN 10 TIMES WOULD BE THREE TIMES BETTER THAN CHANCE ON THE OTHER HAND IF THE ACTUAL REOFFENSE RATE IS FOUR IN 10 THEN PROFESSIONALS DO LESS WELL THAN CHANCE EVERYTHING DEPENDS ON THE BASE RATE NOTE FINALLY THAT EVEN IF THE ONEINTHREE ACCURACY RATE IS BETTER THAN CHANCE IT STILL MEANS THAT FOR EVERY PERSON PREVENTIVELY DETAINED WHO WOULD HAVE REOFFENDED TWO PEOPLE WHO WOULD NOT OFFEND AGAIN ARE BEING PREVENTIVELY DETAINED UNNECESSARILY AT IMMENSE COST TO THEM AND TO THE STATE 9301140112 930114 LETTERS TO THE EDITOR DISABILITIES ACT RULES TO BE ENFORCED FAIRLY IN ITS RUSH TO JUDGMENT YOUR JAN 4 EDITORIAL ADA SIGNS IN CREATES A FALSE IMPRESSION OF THE FEDERAL GOVERNMENT'S ENFORCEMENT EFFORTS UNDER THE AMERICANS WITH DISABILITIES ACT YOU INCLUDE A NUMBER OF FACTUAL ASSERTIONS AND CONCLUSIONS ABOUT THE CASE AGAINST BECKER CPA REVIEW AND OUR NEGOTIATIONS WITH THE DEFENDANT AS YOU ACCURATELY POINT OUT WE WILL NOT DISCUSS THIS CASE BECAUSE IT IS THE LONGSTANDING POLICY OF THE JUSTICE DEPARTMENT NOT TO COMMENT ON CASES IN LITIGATION AND THUS I CANNOT RESPOND TO YOUR EDITORIAL'S STATEMENTS HOWEVER I AM COMPELLED TO SAY THAT THE FILING OF THE ACTION DESERVES A MORE EVENHANDED ASSESSMENT JUSTICE'S CIVIL RIGHTS DIVISION HAS RECEIVED MORE THAN 1500 COMPLAINTS SINCE ADA WENT INTO EFFECT LAST JANUARY IT HAS BEGUN INVESTIGATIONS IN MOST OF THESE CASES AND HAS SUCCESSFULLY AND VOLUNTARILY RESOLVED A NUMBER OF THEM THROUGH NEGOTIATION THE BECKER CASE WAS THE FIRST TIME SETTLEMENT NEGOTIATIONS FAILED IT REMAINS THE DIVISION'S POLICY TO ENFORCE THE ADA FAIRLY AND VIGOROUSLY WE WILL ALWAYS SEEK FIRST TO EDUCATE COVERED BUSINESSES ABOUT RULES AND TO NEGOTIATE COMPLIANCE WHEN WE HAVE IDENTIFIED A VIOLATION ONLY WHEN NEGOTIATIONS FAIL WILL WE RESORT TO LITIGATION EVEN THEN WE WILL CONTINUE TO PURSUE VOLUNTARY SETTLEMENT YOUR EDITORIAL MISREPRESENTS OUR ENFORCEMENT EFFORTS AND IS LIKELY TO MISLEAD BUSINESSES INTO BELIEVING WE WILL UNFAIRLY IGNORE THEIR CONCERNS WHILE ENFORCING THE AMERICANS WITH DISABILITIES ACT OUR YEARLONG RECORD BELIES SUCH AN ASSERTION 9301140111 930114 LAW LEGAL BEAT LAWS ALLOWING SEIZURE OF PROPERTY OF SUSPECTS COME UNDER ATTACK BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL A PROSECUTOR DRIVES A CONFISCATED BMW SHERIFFS FILL THEIR COFFERS WITH CASH SEIZED FROM MOTORISTS PEOPLE LOSE THEIR HOMES BECAUSE THEIR KIDS SOLD DRUGS IN THE BASEMENT ARE THE NATION'S TOUGH CIVILFORFEITURE LAWS INTENDED AS WEAPONS AGAINST DRUG BUYERS AND SELLERS RIPE FOR REVISION OR REPEAL MANY INNOCENT VICTIMS OF SUCH ASSET SEIZURES SAY YES AND HAVE MOUNTED AN ASSAULT ON THE STATE AND FEDERAL STATUTES BUT SO FAR PROSECUTORS ARE HANGING TOUGH TO PRESERVE A POWER THEY CONTEND THEY NEED THE LAWS LET PROSECUTORS SEIZE PROPERTY OF PEOPLE THEY SUSPECT OF CERTAIN CRIMES ON THE THEORY THAT THE ASSETS ARE RELATED TO THE CRIMINAL ACTIVITY IN PRACTICE THE LAWS ALSO AIM TO INCREASE THE COST OF THE CRIME SOMEONE WHO DRIVES AN EXPENSIVE CAR INTO AN AREA TO BUY DRUGS FOR EXAMPLE COULD END UP LOSING THE VEHICLE EVEN IF THE DRUG CHARGE TURNS OUT TO BE MINOR THE PROBLEM IS THAT THE PERSON ISN'T ALWAYS GUILTY YET EVEN THE INNOCENT SOMETIMES HAVE GREAT DIFFICULTY GETTING THEIR PROPERTY BACK IN ADDITION IN MANY CASES PUBLIC OFFICIALS HAVE BEEN ALLOWED TO KEEP THE ASSETS FOR LAWENFORCEMENT OR EVEN PERSONAL USE COMPLAINTS ABOUT ABUSES OF THE LAWS MOST OF WHICH WERE ENACTED IN THE PAST DECADE HAVE DRAWN INCREASING ATTENTION IN RECENT MONTHS CONGRESS AND SEVERAL STATE LEGISLATURES HAVE CONSIDERED STEPS TO REVISE THE MEASURES SUCH AS REQUIRING HEARINGS BEFORE PROPERTY CAN BE SEIZED AND SEVERAL COURT CHALLENGES TO THE CONSTITUTIONALITY OF THE FORFEITURE LAWS ARE PENDING INCLUDING THREE CASES BEFORE THE US SUPREME COURT LAWENFORCEMENT AGENCIES HOWEVER AREN'T BUDGING SO FAR THEY HAVE BEATEN BACK EFFORTS IN LOUISIANA AND WEAKENED PROPOSALS IN OTHER STATES TO REIN IN THE LAWS PROSECUTORS DISMISS MANY OF THE ALLEGATIONS OF ABUSE AS GRUMBLING FROM DEFENSE ATTORNEYS AND PROPERTY OWNERS DEFENSE ATTORNEYS AREN'T INTERESTED IN JUSTICE SAYS CARY COPELAND DIRECTOR OF THE JUSTICE DEPARTMENT'S ASSET FORFEITURE PROGRAM THEY ARE INTERESTED IN DISMANTLING THE PROGRAM THAT TAKES MONEY OUT OF THEIR POCKETS COURTORDERED FORFEITURES ARE COMMON IN CASES IN WHICH A DEFENDANT FAILS TO PAY A COURT JUDGMENT AND THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW HAS BEEN CRITICIZED FOR ITS BROAD FORFEITURE PENALTIES BUT THE CIVIL FORFEITURE LAWS NOW UNDER ATTACK DON'T REQUIRE A CONVICTION BEFORE PROPERTY CAN BE TAKEN AWAY AND MOST OF THE LAWS ALLOW POLICE TO CONFISCATE MONEY AND PROPERTY FROM A SUSPECT STOPPED FOR SUCH MINOR CRIMES AS SPEEDING THE LAWS ALSO MAKE IT DIFFICULT FOR PROPERTY OWNERS TO GET THEIR ASSETS BACK EVEN IF THEY AREN'T NAMED AS DEFENDANTS THEY ARE REQUIRED TO SHOW THAT THEY WEREN'T AWARE OF ANY CRIMINAL ACTIVITY INVOLVING THE PROPERTY THE FORFEITURE PROGRAMS HAVE PROVIDED A WINDFALL FOR LAWENFORCEMENT AGENCIES WHICH KEEP THE PROPERTY THEY SEIZE FOR EXAMPLE WITHIN THE FIRST FIVE YEARS OF THE SIXYEAROLD FEDERAL ASSET FORFEITURE PROGRAM THE JUSTICE DEPARTMENT CONFISCATED 24 BILLION IN CASH AND PROPERTY INCLUDING 826 MILLION SHARED WITH STATE AND LOCAL AGENCIES INITIALLY PROSECUTORS JOINED DEFENSE ATTORNEYS IN TRYING TO DRAFT A MODEL REVISION OF THE FORFEITURE LAWS THAT COULD BE USED ACROSS THE COUNTRY BUT WHEN IT APPEARED THAT DEFENSE LAWYERS WERE GETTING THE UPPER HAND IN CRAFTING THE PROPOSAL THE JUSTICE DEPARTMENT AND STATE AND LOCAL PROSECUTORS BOLTED AND DECIDED TO DRAFT THEIR OWN HARSHER VERSION CAMERON HOLMES ONE OF THE DRAFTERS OF THE PROSECUTORS' PROPOSAL PLAYED DOWN THE CONCERNS OF DEFENSE ATTORNEYS THE OBJECTIVE WAS TO PROVIDE AN EFFECTIVE STATUTE THE ARIZONA PROSECUTOR SAYS THE COMPLAINTS OF ABUSES ARE HIGHLY EXAGGERATED AND WILL BE SHOWN TO BE AN ENORMOUS EXAGGERATION CRITICS HOWEVER LIST A CATALOG OF ABUSES CARL AND MARY SHELDEN FOR INSTANCE FOUGHT IN THE COURTS FOR FIVE YEARS TO GET BACK A HOUSE THEY OWNED THAT HAD BEEN SEIZED BY THE FEDERAL GOVERNMENT THE SHELDENS WEREN'T ACCUSED OF ANY WRONGDOING BUT THEY HELD A SECOND MORTGAGE ON THE HOUSE WHICH WAS OCCUPIED BY A BUSINESSMAN CONVICTED OF RUNNING AN INTERSTATE PROSTITUTION RING THE HOUSE FELL INTO DISREPAIR WHILE IT WAS IN GOVERNMENT CUSTODY THE CALIFORNIA COUPLE SAYS AND NOW THEY ARE BACK IN COURT TRYING TO COLLECT RESTITUTION FOR THE DAMAGE CLAIMING THAT THE GOVERNMENT UNCONSTITUTIONALLY DEPRIVED THEM OF JUST COMPENSATION OTHER EXAMPLES INCLUDE MINOR OFFENDERS SUCH AS DICK KASTER A RETIRED FOREMAN IN VENTURA IOWA WHOSE 6000 BOAT WAS TAKEN AWAY AFTER HE WAS CONVICTED OF ILLEGALLY CATCHING THREE FISH AND SHERIFFS AND FEDERAL AGENTS IN SEVERAL PARTS OF THE COUNTRY HAVE BEEN ACCUSED OF CONFISCATING MILLIONS OF DOLLARS IN CASH BY STOPPING MOSTLY BLACK AND HISPANIC TRAVELERS WHOM THEY ALLEGE WERE DRUG MONEY COURIERS TAKING THEIR MONEY AND THEN RELEASING THE TRAVELERS WITHOUT FILING CHARGES A FORFEITURE CASE IS SOMETHING OUT OF LEWIS CARROLL'S ALICE IN WONDERLAND' WHERE THE RULE IS PUNISHMENT FIRST TRIAL LATER SAYS BRENDA GRANTLAND A DEFENSE ATTORNEY WHO REPRESENTS A GRASSROOTS ORGANIZATION CALLED FEAR WHICH LOBBIES TO CHANGE THE LAWS MS GRANTLAND AND OTHER CRITICS SAY MANY OF THOSE ABUSES COULD BE REMEDIED BY PROHIBITING CONFISCATION BEFORE CONVICTION OR REQUIRING THAT THE VALUE OF THE PROPERTY SEIZED IS PROPORTIONAL TO THE CRIME AMONG OTHER POSSIBLE CHANGES CRITICS SAY THE GOVERNMENT SHOULD BE REQUIRED TO PROVE THAT THE PROPERTY WAS LINKED TO CRIMINAL ACTIVITY BASED ON A HIGHER STANDARD PREPONDERANCE OF EVIDENCE OR BEYOND A REASONABLE DOUBT RATHER THAN THE EASIER STANDARD OF PROBABLE CAUSE SOME PROSECUTORS HAVE OFFERED TO ESTABLISH THEIR OWN RULES TO DETER ABUSES OF THE FORFEITURE LAWS NEW JERSEY ATTORNEY GENERAL ROBERT J DEL TUFO FOR EXAMPLE THIS MONTH IMPOSED GUIDELINES THAT WOULD AMONG OTHER THINGS REQUIRE HIS PROSECUTORS TO GO TO COURT WHEN THEY WANTED TO CONFISCATE PROPERTY VALUED AT MORE THAN 10000 BUT SOME SAY SUCH STEPS DON'T GO FAR ENOUGH NEW JERSEY STATE ASSEMBLYMAN E SCOTT GARRETT THE MAIN SPONSOR OF A PROPOSED REVISED FORFEITURE LAW FOR THE STATE SAID MR DEL TUFO'S GUIDELINES WON'T ENSURE THAT CITIZENS' RIGHTS ARE PROTECTED THEY CAN CHANGE IN SIX MONTHS SIX WEEKS OR WHEN A NEW ATTORNEY GENERAL TAKES OVER MR GARRETT SAID A LENDER WHO HELD TITLE TO A POLLUTED PROPERTY FOR LESS THAN A MONTH ISN'T LIABLE FOR SUPERFUND CLEANUP COSTS A FEDERAL JUDGE HAS RULED UPHOLDING THE ENVIRONMENTAL PROTECTION AGENCY'S NEW RULES ON LENDER LIABILITY JUDGE PAUL A MAGNUSON ST PAUL MINN SAID INDUSTRY FINANCIAL CORP DID NOT HAVE TO HELP PAY FOR A CLEANUP SIMPLY BECAUSE IT FORECLOSED ON THE PROPERTY WHEN A BORROWER WENT INTO BANKRUPTCYLAW PROCEEDINGS ASHLAND OIL CO ASHLAND KY WHICH OWNS THE MINNESOTA PROPERTY AND LEASED IT TO THE BORROWER HAD ATTEMPTED TO FORCE IFC TO CONTRIBUTE TO THE CLEANUP ESTIMATED TO COST AS MUCH AS 10 MILLION THE RULING BY JUDGE MAGNUSON IS BELIEVED TO BE AMONG THE FIRST TO APPLY THE NEW RULES THAT THE EPA SAYS WILL PROTECT LENDERS FROM CLEANUP LIABILITY THE RULING EASES CONCERNS THAT THE RULES WOULDN'T HOLD UP IN COURT GIVEN THE BROAD LIABILITY PROVISIONS OF THE SUPERFUND LAW ITSELF SAID GARRARD R BEENEY AN ENVIRONMENTAL LAWYER AT SULLIVAN & CROMWELL IN NEW YORK THE EPA APPROVED THE NEW RULES LAST YEAR IN RESPONSE TO PRESSURE FROM BANKING GROUPS THAT SAID THEY WERE AFRAID TO FORECLOSE ON POLLUTED PROPERTIES BECAUSE SUCH ACTION MIGHT RENDER THEM LIABLE FOR CLEANUP COSTS THIS IS GOOD FOR LENDERS SAID GREGORY A FONTAINE A LAWYER AT DORSEY & WHITNEY IN MINNEAPOLIS WHICH REPRESENTED IFC BUT MR FONTAINE CAUTIONED THAT THE COURT DIDN'T DIRECTLY ADDRESS WHAT WOULD HAPPEN IF THE PROPERTY HAD BEEN HELD LONGER THAN THE 27 DAYS AT ISSUE IN THIS CASE LARRY ESPEL AN ATTORNEY IN MINNEAPOLIS AT POPHAM HAIK SCHNOBRICH & KAUFMANN SAID ASHLAND IS CONSIDERING AN APPEAL ASHLAND WAS AN INNOCENT VICTIM IT HAD NOTHING TO DO WITH THE BUSINESS YET BECAUSE IT'S THE LANDLORD IT'S SADDLED WITH LIABILITY HE SAID ADDING IN OUR MIND IFC OUGHT TO CONTRIBUTE BECAUSE THEY WERE RESPONSIBLE FOR THE BUSINESS THEY SHOULD HAVE LOOKED OUT FOR WHO THEY WERE LENDING TO ASHLAND OIL VS SONFORD PRODUCTS CORP US DISTRICT COURT ST PAUL MINN 3910715 WHO'S NEWS JOHN LARKIN THOMPSON PRESIDENT EMERITUS OF BLUE CROSS/BLUE SHIELD OF MASSACHUSETTS INC JOINED THE LAW FIRM NUTTER MCCLENNEN & FISH AS OF COUNSEL A NONPARTNER POSITION MR THOMPSON WILL FOCUS ON HEALTHCARE ISSUES THE BOSTON LAW FIRM SAID JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9301140110 930114 WHO'S NEWS HOUSEHOLD'S HOFFMAN TO GET ADDED TITLE OF CHIEF EXECUTIVE PROSPECT HEIGHTS ILL HOUSEHOLD INTERNATIONAL CHAIRMAN DONALD C CLARK WILL HAND HIS CHIEF EXECUTIVE'S TITLE TO THE COMPANY'S PRESIDENT EDWIN P HOFFMAN AT THE FINANCIALSERVICE COMPANY'S ANNUAL SHAREHOLDERS MEETING IN MAY MR CLARK WHO WILL REMAIN CHAIRMAN SAID HE EXPECTS THAT 1993 WILL MARK A TURNAROUND FOR THE COMPANY AND A GOOD TIME FOR HIM TO STEP ASIDE AS CHIEF EXECUTIVE IT'S A NICE WAY TO GO OUT AND FOR ED TO COME IN HE SAID IN AN INTERVIEW HOUSEHOLD'S MANDATORY RETIREMENT AGE FOR CHIEF EXECUTIVES IS 65 BUT MR CLARK WILL RELINQUISH THE REINS AT 61 MR HOFFMAN IS 50 WALL STREET ANALYSTS EXPRESSED SURPRISE AT MR CLARK'S DECISION TO MOVE ASIDE SO SOON BUT THEY AGREED THAT THE COMPANY'S FORTUNES ARE LOOKING UP AND THAT THE TRANSITION COMES AT A FAVORABLE TIME IF ANYTHING I SEE IT AS A POSITIVE SIGN THAT CLARK FEELS COMFORTABLE THAT HE'S DONE HIS WORK SAID GARY GORDON A PAINEWEBBER ANALYST MR CLARK CREDITED MR HOFFMAN WITH SPEARHEADING HOUSEHOLD'S EFFORTS TO CLEAN UP ITS PROBLEM COMMERCIAL LOANS AND SHAPE UP INTERNATIONAL OPERATIONS IN THE LAST YEAR SIGNS OF IMPROVEMENT PROMPTED ANALYSTS TO ESTIMATE HOUSEHOLD'S 1993 FULLY DILUTED EARNINGS AT ABOUT 575 A SHARE UP MARKEDLY FROM ESTIMATES IN THE 375TO385 RANGE FOR 1992 MR HOFFMAN WHO JOINED HOUSEHOLD FIVE YEARS AGO PREVIOUSLY HELD MANAGERIAL AND EXECUTIVE POSITIONS AT CITICORP 9301140109 930104 REVIEW & OUTLOOK EDITORIAL ADA SIGNS IN PROPONENTS OF THE AMERICANS WITH DISABILITIES ACT HAVE CONSISTENTLY ARGUED THAT FEARS ABOUT IT ARE OVERBLOWN THAT IT CAN BE NARROWLY APPLIED AT REASONABLE COST TO ASSIST PEOPLE WHO HAVEN'T GOTTEN A FAIR SHAKE IN LIFE AMERICAN BUSINESS IS WATCHING CLOSELY AND STILL WONDERING WITH MOST OF THE ACTION TAKING PLACE IN THE JOB MARKET BUT THERE'S ALSO A FLIP SIDE OF ENFORCEMENT THE CUSTOMER COMPLAINTS WITH CAUSE FOR CONCERN TAKE LAST WEEK'S FILING BY THE JUSTICE DEPARTMENT AGAINST BECKER CPA REVIEW A CALIFORNIABASED FIRM THAT PREPARES 10000 PEOPLE A YEAR AT 130 LOCATIONS FOR ACCOUNTANCY EXAMS SINCE 1987 BECKER HAS OFFERED HEARINGIMPAIRED STUDENTS SCRIPTS OF ITS PRESENTATIONS WHICH THEMSELVES USE VISUAL AIDS AND OTHER ACCOMMODATIONS AT NO EXTRA CHARGE ON DEC 7 BECKER RECEIVED WORD FROM JUSTICE'S CIVIL RIGHTS DIVISION THAT IT WAS EXPECTED TO PROVIDE SIGNLANGUAGE TRANSLATION FOR A WOULDBE ENROLLEE IN ITS WASHINGTON DC PROGRAM THE STUDENT MADE INITIAL CONTACT WITH BECKER LAST JUNE VIA A TRANSLATOR REQUEST FROM THE NATIONAL CENTER FOR LAW AND THE DEAF A LEGALADVOCACY ARM OF GALLAUDET UNIVERSITY HE THEN ATTENDED A FEW INTRODUCTORY SESSIONS AND THERE WERE DISCUSSIONS OF HOW THE MATTER MIGHT BE RESOLVED BUT HE DROPPED THE CLASS NOT MUCH FOLLOWED UNTIL JUSTICE'S DEMAND FOR ACTION WITHIN THREE WEEKS ARRIVED LAST MONTH THE COMPANY ARGUED FOR TIME AND ALSO SAID THAT BECAUSE OF FREQUENT LECTURE REFERENCES TO PRINTED AND PROJECTED MATERIALS THAT OCCUPY THE EYE A SIGNER WAS LIKELY TO CONFUSE THE PRESENTATION THE STUDENT HAD BROUGHT HIS OWN TRANSLATOR TO ONE OF THE SESSIONS HE ATTENDED AND FOUND IT DID HELP IN ADDITION ALTHOUGH BECKER DIDN'T STRESS THIS POINT THE EXPECTED COST OF THE SIGNLANGUAGE SERVICE WAS 50009000 FOR A COURSE WHOSE TUITION IS 10001200 TWO TRANSLATORS MUST BE HIRED THE FIRM FIGURES BECAUSE WORKING TOO LONG WITHOUT A BREAK SUBJECTS THEM TO CARPALTUNNEL SYNDROME BECKER SOUGHT TO OFFER ALTERNATIVES BUT THE GOVERNMENT LAWYERS WERE INSISTENT ON CHRISTMAS EVE THE DEADLINE FOR COMPLYING BECKER CAPITULATED A LONGDISTANCE LEGAL BATTLE WAS SOMETHING IT DIDN'T NEED THE FOLLOWING MONDAY HOWEVER JUSTICE FILED ITS CIVIL COMPLAINT SEEKING PENALTIES AND DAMAGES FOR ADA VIOLATIONS THE GOVERNMENT WON'T DISCUSS THE CASE BUT MAINTAINS IT TRIES TO WORK COMPLAINTS OUT AND HAS SUCCEEDED WITH EVERYONE BUT BECKER YET THE CIRCUMSTANCES OF THE ACTION AND OF COURSE AN ACCOMPANYING PRESS RELEASE SUGGEST EXACTLY THE KIND OF RUNANDGUN ENFORCEMENT OF COMPLEX LEGISLATION THAT EVERY ENTERPRISE IN AMERICA FEARS IT WILL BE SUBJECT TO SEE RELATED LETTER LETTERS TO THE EDITOR DISABILITIES ACT RULES TO BE ENFORCED FAIRLY WSJ JAN 14 1993 9301040109 9301140108 930114 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK MICHAEL V NEEDHAM 49 YEARS OLD WAS NAMED PRESIDENT OF THE COLLEGE DIVISION AT THIS MAJOR PUBLISHING AND INFORMATION SERVICES CONCERN MR NEEDHAM WHO HAD BEEN SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE COLLEGE DIVISION AT SOUTHWESTERN PUBLISHING CO A CINCINNATI UNIT OF THOMSON CORP SUCCEEDS CARL TYSON WHO RESIGNED IN JULY TO TAKE AN EXECUTIVE POSITION AT HARCOURT BRACE & JOVANOVICH INC 9301140107 930114 FAA REVISES TEST FOR JET EVACUATION CITING SAFETY ISSUE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL AVIATION ADMINISTRATION'S TOP SAFETY REGULATOR SAYS THE AGENCY WILL NO LONGER CONDUCT JETLINEREVACUATION TESTS THAT ATTEMPT TO FULLY SIMULATE REALLIFE EMERGENCY CONDITIONS INSTEAD SAID FAA ASSOCIATE ADMINISTRATOR ANTHONY BRODERICK IN AN INTERVIEW THE AGENCY HAS BEGUN CONDUCTING THE TESTS IN PHASES TO ELIMINATE THE DANGER TO HUMAN VOLUNTEERS WHO PARTICIPATE WHILE NEW METHODS APPEAR TO RELAX TESTING STANDARDS MR BRODERICK SAID THEY PROVIDE AN EQUAL MEASURE OF ASSURANCE THAT AN AIRLINER CAN SAFELY BE EVACUATED A CONTROVERSY OVER THE TESTING ERUPTED IN OCTOBER 1991 AFTER A WOMAN PARTICIPATING IN A MOCK EVACUATION OF A MCDONNELL DOUGLAS MD11 AIRLINER FELL FROM THE PLANE AND WAS PARALYZED DOZENS OF OTHER TEST PARTICPANTS RECEIVED MINOR INJURIES MR BRODERICK'S REMARKS FOLLOWED PUBLIC CONFIRMATIONS BY THE GOVERNMENT AND MCDONNELL DOUGLAS CORP THAT THE MD11 WAS RETESTED USING NEW METHODS IN EARLY DECEMBER FOR THE FIRST TIME SINCE THE MISHAP IN 1991 THE RETESTING WAS FIRST REPORTED IN THE LOS ANGELES TIMES AN ADVISORY COMMITEE OF INDUSTRY EXPERTS STILL NEEDS SEVERAL MONTHS TO COMPLETE ITS FINAL RECOMMENDATIONS ON REVAMPING TEST PROCEDURES MR BRODERICK SAID THE MD11 HAD TO BE TESTED TO MEET DELIVERY SCHEDULES FOR THE GERMAN CARRIER LTU SO THE AGENCY INVOKED NEW TESTING PROCEDURES IT THOUGHT APPROPRIATE THE AIRCRAFT PASSED ITS DECEMBER TEST HE SAID THE TEST WAS NEEDED BECAUSE THE AIRLINE WANTS TO CARRY 410 PASSENGERS INSTEAD OF THE 398 AUTHORIZED BY SAFETY AGENCIES IN THE US AND EUROPE CERTIFICATION TESTS HISTORICALLY HAVE REQUIRED PEOPLE PLAYING THE PART OF PASSENGERS ON A LARGE AIRLINER OFTEN PEOPLE WITH NO ADVANCE TRAINING IN TESTING PROCEDURES OR EVACUATION TO EXIT THE CABIN BY WAY OF A DEPLOYED SLIDE IN THE CASE OF THE MD11 THE AIRPLANE HAD TO COMPLETE THAT DRILL IN 90 SECONDS FOR NOW THE AGENCY HAS BEGUN CONDUCTING THE TESTS IN PHASES IN A FIRST PHASE THE SLIDE IS CHECKED IN VARIOUS TESTS USING PAID SUBJECTS WHO JUMP ONTO IT UNDER VARIOUS CONDITIONS LATER THE AGENCY TESTS THE ABILITY OF A JETLINER CREW TO GET TO DOORS OPEN THEM AND DEPLOY THE SLIDES IN A THIRD PHASE PASSENGERS BRIEFED ON EVACUATION PROCEDURES EXIT THE AIRCRAFT ONTO A PLATFORM PLACED AT A LEVEL EVEN WITH THE BOTTOM OF THE EXIT DOOR IT IS OUR INTENTION NOT TO RETURN TO THE ORIGINAL FORM OF TESTING BECAUSE OF THE DANGER OF THAT TEST SAID MR BRODERICK SOME SAFETY EXPERTS ARE WARY OF THE NEW TESTING SYSTEM BECAUSE THEY SAY IT DOES NOT PROPERLY ALLOW FOR SUCH FACTORS AS HESITATION ON THE PART OF PASSENGERS WHO FEAR THE STEEP DROP DOWN A TYPICAL SLIDE BUT MR BRODERICK NOTED THAT THE NEW PROCEDURE BREAKS DOWN THE PREVIOUS 90SECOND TESTING STANDARD FOR THE MD11 INTO CAREFULLY TIMED SEGMENTS FOR INSTANCE IT ALLOWS 15 SECONDS FOR THE CREW TO DEPLOY SLIDES THEN AN ADDITIONAL 13 SECONDS TO ALLOW FOR PASSENGERS WHO HESITATE TO LEAP ONTO THE SLIDES AS INSTRUCTED FINALLY IT ALLOWS UP TO 62 SECONDS FOR THE PASSENGERS TO EXIT IN THE DECEMBER TEST OF THE MD11 THE PASSENGERS WERE CLEAR OF THE AIRCRAFT IN 56 SECONDS THE EVACUATION INCLUDED NINE FLIGHT ATTENDANTS AND TWO COCKPIT CREW MEMBERS 9301140106 930114 FEDERAL EXPRESS PACKAGE VOLUME MEMPHIS TENN FEDERAL EXPRESS CORP REPORTED A 22 RISE IN PACKAGE VOLUME FOR DECEMBER REFLECTING BIGGERTHANUSUAL GAINS IN ITS LUCRATIVE NEXTDAY SERVICE THE MOST FAVORABLE VOLUME INCREASE FOR THE EXPRESSDELIVERY CONCERN CAME IN ITS PRIORITY OVERNIGHT SERVICE PACKAGES SHIPPED FOR DELIVERY BY THE NEXT MORNING INCREASED 12 FROM LAST YEAR'S LEVEL TO 823500 PACKAGES A DAY THAT STRONGLY OUTDISTANCES THE 8 GAIN IN PRIORITY OVERNIGHT VOLUME FOR THE PAST SEVEN MONTHS AND REPRESENTS A SHIFT TOWARD THE MORE PROFITABLE OVERNIGHT SERVICE IT'S A MORE ECONOMICALLY SENSITIVE PRODUCT SAYS JAMES PARKER ANALYST WITH ROBINSON HUMPHREY CO IN ATLANTA STRONG GROWTH IN PRIORITY OVERNIGHT SERVICE SHOWS THE ECONOMY IS STRONGER 9301140105 930114 WHO'S NEWS LIZ CLAIBORNE INC LIZ CLAIBORNE INC NEW YORK DEBBY KELLY 43 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENT OF REGIONAL DEVELOPMENT AND SERVICING AT THIS MAJOR APPAREL CONCERN MS KELLY WHO HAD BEEN VICE PRESIDENT OF RETAIL PROMOTION AND TRAINING SUCCEEDS TOM BURKE WHO RESIGNED LAST WEEK TO PURSUE OTHER INTERESTS ALSO LEE ABRAHAM 65 WAS NAMED A DIRECTOR INCREASING THE BOARD TO NINE MEMBERS MR ABRAHAM IS THE RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ASSOCIATED MERCHANDISING CORP A WORLDWIDE RETAIL MERCHANDISING AND SOURCING ORGANIZATION 9301140104 930114 MOTOROLA PROFIT INCREASED 44 FOR FOURTH PERIOD BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC PARLAYED ITS STRENGTHS IN CHIP AND CELLULAR TECHNOLOGY INTO AN UNEXPECTEDLY LARGE FOURTHQUARTER EARNINGS GAIN OF 44 THE SCHAUMBURG ILL COMPANY SAID IT EARNED 181 MILLION OR 135 A SHARE UP FROM 126 MILLION OR 96 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE JUMPED 22 TO 371 BILLION FROM 304 BILLION ANALYSTS HAD EXPECTED EARNINGS FOR THE PERIOD OF ABOUT 130 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC THE RESULTS WERE ANNOUNCED AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE MOTOROLA'S SHARES ROSE 1 TO 112375 IN COMPOSITE BIG BOARD TRADING IN THE PAST SIX TRADING DAYS THE COMPANY'S STOCK HAS RISEN 9 AND IT HAS JUMPED MORE THAN 50 FROM SIX MONTHS AGO MOTOROLA IS THE WORLD MARKET LEADER IN THE MANUFACTURE AND SALE OF CELLULAR PHONES PAGERS TWOWAY RADIOS AND MICROCHIPS USED IN DEVICES OTHER THAN COMPUTERS ITS REVENUE HAS SURGED IN THE PAST FIVE YEARS AS IT TOOK ADVANTAGE OF THE DEMAND FOR WIRELESS COMMUNICATIONS DEVICES ALTHOUGH ITS PROFIT MARGINS HAVE REMAINED RELATIVELY MODEST BECAUSE OF HUGE RESEARCH AND DEVELOPMENT COSTS AND CAPITAL EXPENDITURES FOR THE YEAR THE COMPANY SAID ITS GENERAL SYSTEMS SECTOR WHICH IS MOSTLY CELLULAR PHONES AND CELLULAR SIGNAL EQUIPMENT POSTED A SALES GAIN OF 26 TO 359 BILLION WHILE ORDERS ROSE 38 OPERATING PROFIT SOARED TO 457 MILLION OR 23 FROM 372 MILLION SALES IN ITS SEMICONDUCTOR PRODUCTS SECTORS JUMPED 22 TO 448 BILLION GENERATING OPERATING PROFIT OF 464 MILLION UP 30 THE CHIP BUSINESS MAKES COMPONENTS FOR MOTOROLA'S PHONES PAGERS AND RADIOS AS WELL AS FOR COMPUTER MANUFACTURERS AND MAKERS OF A BROAD RANGE OF OTHER DEVICES SUCH AS CAMCORDERS AND CAR ENGINES SALES AT MOTOROLA'S THIRD MAJOR BUSINESS LINE COMMUNICATIONS PRODUCTS SUCH AS TWOWAY RADIOS GREW 14 TO 414 BILLION RESULTING IN OPERATING PROFIT OF 237 MILLION UP 24 GEORGE FISHER MOTOROLA'S CHIEF EXECUTIVE OFFICER HAS PROCLAIMED THE 1990S THE DECADE OF WIRELESS COMMUNICATIONS AND IS PUSHING A PLAN TO LAUNCH A 34 BILLION WORLDWIDE GRID OF SATELLITES THAT WOULD PROVIDE SEAMLESS WIRELESS PHONE SERVICE LAST MONTH THE COMPANY SAID IT RECEIVED PRELIMINARY EQUITY PLEDGES FROM CORPORATE INVESTORS AMOUNTING TO AN INDICATED 14 BILLION AND HAS STOPPED LOOKING FOR ADDITIONAL EQUITY IF COMPLETED THE TRANSACTION WOULD BE ONE OF THE LARGEST PRIVATE PLACEMENTS IN HISTORY MOTOROLA PLANS TO RETAIN A STAKE IN THE SOCALLED IRIDIUM PROJECT OF ROUGHLY 15 WITH AN INDICATED EQUITY VALUE OF 240 MILLION AND RAISE ABOUT 18 BILLION OF DEBT HOWEVER SOME OBSERVERS AREN'T SURE WHETHER THE PROJECT SHOULD BE CODENAMED IRIDIUM OR ICARUS THEY ASSERT THE PLAN IS TOO EXPENSIVE AND THAT LANDBASED CELLULARPHONE OPERATORS WILL MEET THE GLOBAL NEED FOR WIRELESS PHONE COMMUNICATION MOTOROLA SAYS THAT IRIDIUM'S EXPENSE REFLECTS INVESTMENT IN A TECHNOLOGICALLY SUPERIOR MORE POWERFUL SYSTEM THAT WILL HAVE A COMPARATIVE ADVANTAGE OVER RIVALS BUT MOTOROLA ALSO FACES CHALLENGERS IN OTHER BUSINESS LINES SUCH AS A REJUVENATED AMERICAN TELEPHONE & TELEGRAPH CO WHICH HAS AGREED TO ACQUIRE A CONTROLLING INTEREST IN MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH ONE OF MOTOROLA'S BIGGEST CUSTOMERS MOREOVER JAPANESE COMPETITORS SUCH AS NEC CORP REMAIN FORMIDABLE COMPETITORS IN PAGERS AND CHIPS TO STAY AHEAD MOTOROLA HAD TO PLOW 27 BILLION LAST YEAR INTO RESEARCH AND DEVELOPMENT AND NEW PLANT AND EQUIPMENT ITS NET PROFIT MARGIN FOR 1992 WAS A RELATIVELY PALTRY 43 COMPARED WITH 4 IN 1991 IT EXPECTS TO SPEND ABOUT 20 TO 22 OF SALES THIS YEAR ON R&D AND CAPITAL EXPENDITURES INDICATING AN AMOUNT OF 3 BILLION TO 33 BILLION WE BELIEVE LIFE IS PERILOUS SAYS ONE MOTOROLA EXECUTIVE FOR THE YEAR MOTOROLA REPORTED AFTERTAX INCOME BEFORE AN ACCOUNTING CHANGE OF 576 MILLION OR 432 A SHARE UP 27 FROM 454 MILLION OR 344 A SHARE IN 1991 A CHARGE RELATED TO CUMULATIVE ACCOUNTING FOR EMPLOYEES' POSTRETIREMENT BENEFITS REDUCED 1992 NET INCOME TO 453 MILLION OR 339 A SHARE REVENUE ROSE 175 TO 133 BILLION FROM 1134 BILLION 9301140103 930114 WHO'S NEWS BICC UNIT APPOINTS CARL PAINTER PRESIDENT AND CHIEF EXECUTIVE WEST NYACK NY BICC CABLES CORP THE NORTH AMERICAN UNIT OF LONDON'S BICC GROUP NAMED CARL E PAINTER 46 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE MR PAINTER SUCCEEDS CHIEF EXECUTIVE HARRY C SCHELL WHO ALONG WITH MR PAINTER AND OTHER SENIOR MANAGEMENT BOUGHT THE ELECTRICAL POWER CABLE BUSINESS OF PHELPS DODGE CORP IN A 1984 LEVERAGED BUYOUT AFTER A NUMBER OF ACQUISITIONS THE GROUP SOLD THE BUSINESS TO BICC IN A SERIES OF STOCK TRANSACTIONS THAT BEGAN IN 1987 MR SCHELL 58 WILL REMAIN CHAIRMAN BUT WILL BE SUCCEEDED BY MR PAINTER WHEN HE RETIRES MR SCHELL SAID MR PAINTER IS EXPECTED TO HELP THE COMPANY REFINE ITS MARKETING EFFORTS AND ADDRESS SUCH INDUSTRY ISSUES AS UNSATISFACTORY PRICING WEAK PRODUCT DEMAND EXCESS CAPACITY AND THE NEED FOR CONTINUING CONSOLIDATION MR PAINTER FORMERLY PRESIDENT OF CABLEC UTILITY CABLE CO A UNIT OF BICC CABLES RECENTLY LED THE 77 MILLION ACQUISITION OF THE ELECTRICAL DIVISION OF REYNOLDS METALS CO BICC CABLES CURRENTLY HAS ANNUAL SALES OF ABOUT 1 BILLION 9301140102 930114 SPI PHARMACEUTICALS SAYS BOARD DECLARED 2 STOCK DIVIDEND COSTA MESA CALIF SPI PHARMACEUTICALS INC SAID ITS BOARD DECLARED A 2 STOCK DIVIDEND THAT WILL BE DISTRIBUTED FEB 5 TO STOCK OF RECORD JAN 25 THE SPECIAL DIVIDEND COMES ON TOP OF A CASH DIVIDEND OF 625 CENTS A SHARE PAID IN DECEMBER THE CASH PAYOUT WAS CUT BY 76 FROM THE PREVIOUS RATE OF 265 CENTS BECAUSE OF WEAKNESS IN THE COMPANY'S YUGOSLAV OPERATIONS SPI SAID ITS BOARD WOULD CONTINUE TO REVIEW THE DIVIDEND POLICY WITH A VIEW TOWARD THE COMPANY'S LONGTERM PROSPECTS FUTURE DIVIDENDS COULD BE PAID IN CASH OR STOCK OR A COMBINATION OF BOTH THE COMPANY SAID THE DRUG COMPANY A 50OWNED SUBSIDIARY OF ICN PHARMACEUTICALS INC SAID THAT ITS BELGRADEBASED ICN GALENIKA SUBSIDIARY CONTINUES TO SUFFER FROM A SEVERE SHORTAGE OF RAW MATERIALS BECAUSE OF UNITED NATIONS ECONOMIC SANCTIONS AGAINST YUGOSLAVIA REFLECTING THE YUGOSLAV SITUATION SPI SAID ITS FOURTHQUARTER SALES FELL 33 TO ABOUT 103 MILLION FROM 154 MILLION A YEAR EARLIER FOR THE YEAR SALES JUMPED 29 TO ABOUT 470 MILLION FROM 364 MILLION INVESTORS REACTED POSITIVELY TO THE STOCK DIVIDEND PUSHING UP THE PRICE OF SPI SHARES BY 18 OR 1875 TO 1225 IN LATE AMERICAN STOCK EXCHANGE TRADING 9301140101 930114 OUT OF CONTROL FIRED SUNBEAM CHIEF HARANGUED AND HAZED EMPLOYEES THEY SAY KAZARIAN CALLED MAD GENIUS' BUT AUTOCRATIC ERRATIC INSENSITIVE TO WOMEN BLOOD PACT' TO TELL THE BOARD BY RON SUSKIND AND SUZANNE ALEXANDER STAFF REPORTERS OF THE WALL STREET JOURNAL TO WALL STREET PAUL KAZARIAN WAS A HARDDRIVING AND DEMANDING LEADER WHO RESCUED SUNBEAMOSTER CO FROM BANKRUPTCY AND MADE IT PROFITABLE AGAIN TO STEVEN FENSTER A PROFESSOR AT HARVARD BUSINESS SCHOOL AND AUTHOR OF A 1991 CASE STUDY ON SUNBEAMOSTER MR KAZARIAN WAS SORT OF A MAD GENIUS WITH INCREDIBLE BUSINESS ACUMEN BUT TO MANY OF HIS EMPLOYEES MR KAZARIAN WAS AN OVERBEARING BOSS WHOSE FREQUENT HARANGUES AND ERRATIC AUTOCRATIC BEHAVIOR MADE THEIR LIVES MISERABLE MR KAZARIAN SAY MANY WHO KNOW HIM STOMPED ON TELEPHONES SHOT BBS AT EMPTY CHAIRS DURING MEETINGS MADE LEWD REMARKS TO WOMEN IN PUBLIC NOT SUNBEAM EMPLOYEES AND SUMMONED TOP MANAGERS TO CRISIS MEETINGS AT ODD HOURS AT LEAST ONCE ENCOURAGING THEM TO UNDERCUT A FELLOW MANAGER WHOM THEY BELIEVE HE PERCEIVED AS A THREAT THIS SIDE OF MR KAZARIAN LED TO HIS SUDDEN FIRING LAST WEEK BY SUNBEAM'S BOARD OF DIRECTORS SIX OF MR KAZARIAN'S TOP LIEUTENANTS INCLUDING ONE WHO IS ON THE BOARD HAVING PLEDGED THEMSELVES TO A BLOOD PACT INITIATED TALKS WITH OTHER DIRECTORS AFTER ENDURING A LENGTHY SATURDAY SESSION WITH MR KAZARIAN ON DEC 19 IN WHICH HE IS SAID TO HAVE BERATED THEM CALLED ONE OF THEM SCUM AND TRIED TO ENLIST THEM IN A CAMPAIGN TO UNDERMINE JAMES CLEGG PRESIDENT OF THE COMPANY'S LARGEST DIVISION HOUSEHOLD PRODUCTS GETTING TOGETHER LATER THE MANAGERS AGREED THAT IF ONE OF US GETS SHOT WE ALL GET SHOT AS ONE OF THE CONSPIRATORS PUT IT WE TELL THE BOARD ABOUT WHAT'S BEEN GOING ON AND THEN THEY'LL DECIDE EITHER THEY GET RID OF HIM OR WE ALL LEAVE TOP EXECUTIVES AND BOARD MEMBERS OF THE PROVIDENCE RI COMPANY TELL A STORY OF A MAN WHOSE MASTERY AS A CRISIS MANAGER TURNED VICIOUS AS SUNBEAM'S SUCCESS DIMINISHED THE NEED FOR HIS FURIOUS MANAGEMENT STYLE MR KAZARIAN'S MAIN MANAGEMENT TACTIC EXECUTIVES CLAIM WAS TO CREATE CRISIS TOP MANAGERS SPEAKING NOT FOR ATTRIBUTION SAY THEY WERE PITTED AGAINST ONE ANOTHER PUBLICLY HAZED HUMILIATED AND EVEN PHYSICALLY INTIMIDATED THE COMPANY WAS DOING SO WELL PEOPLE WANTED TO BELIEVE EVERYTHING WAS OK SAYS ONE BOARD MEMBER WHAT WE ULTIMATELY FOUND WAS JUST BEYOND THE PALE OF WHAT IS ACCEPTABLE RODERICK HILLS A SUNBEAM DIRECTOR AND FORMER CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION REMARKS OF MR KAZARIAN THAT AS WILL ROGERS SAID NO ONE IS QUITE AS GOOD OR QUITE AS BAD AS THEY'RE SUPPOSED TO BE KAZARIAN REVELS IN BEING A RENEGADE COMPLAINS MITCHELL ENGEL EXECUTIVE VICE PRESIDENT OF FOOTE CONE & BELDING ADVERTISING INC WHICH IS SUING SUNBEAM FOR LOSSES IT SAYS IT SUFFERED WHEN MR KAZARIAN RENEGED ON A CONTRACT HE'S A SELFPERCEIVED BOY WONDER RULES HAVE NEVER BEEN IMPORTANT TO HIM MR KAZARIAN WHO IS 37 YEARS OLD EXPRESSES SURPRISE AT HIS DISMISSAL AND INSISTS IT WAS UNWARRANTED WHAT AMAZES ME IS THAT 1 OR 2 OF WHAT OCCURRED AT THE COMPANY IS OVERWHELMING THE GOOD THINGS THAT HAPPENED 99 OF THE TIME HE SAID IN AN INTERVIEW LATE YESTERDAY NOTING THAT THE PERFORMANCE OF THE COMPANY UNDER HIS DIRECTION WAS NEVER QUESTIONED HE ADDED THAT HE RECEIVED NO COMPLAINTS ABOUT HIS MANAGEMENT STYLE BEFORE HE WAS FIRED AND POINTED OUT THAT HE RECEIVED A GENEROUS BONUS ONLY WEEKS BEFORE THE BIZARRE TURN OF EVENTS HAS HAD LITTLE EFFECT ON SUNBEAM'S SHARE PRICE AFTER DROPPING 10 AFTER THE FIRING THE STOCK HAS SINCE ALMOST FULLY RECOVERED TO 16625 TRADING VOLUME HAS SOARED HOWEVER UNTIL RECENTLY THERE HAD BEEN LITTLE BUT PUBLIC PRAISE FOR MR KAZARIAN WHILE A STUDENT IN THE LATE 1970S AT COLUMBIA WHERE HE GOT AN MBA HE WORKED NIGHTS AT GOLDMAN SACHS & CO HIS HIGH ENERGY LEVEL IMPRESSED EXECUTIVES AND AFTER GRADUATION HE WAS HIRED AS AN INVESTMENT BANKER HE WOULD WORK AS LATE AS 4 AM MR KAZARIAN LEFT GOLDMAN IN 1987 TO FORM HIS OWN INVESTMENT PARTNERSHIP JAPONICA PARTNERS IN 1990 IT JOINED WITH WALL STREET HEAVYWEIGHTS STEINHARDT PARTNERS AND THE MUTUAL SERIES MUTUAL FUNDS TO BUY OUT ALLEGHENY INTERNATIONAL WHICH OWNED SUNBEAM I'VE NEVER MET ANYONE WITH HIS FINANCIAL BACKGROUND WHO HAD SUCH GOOD INSIGHT ON OPERATIONS WHEN I MET HIM KAZARIAN HAD FAIRLY RECENTLY BOUGHT THE COMPANY SAYS PROF FENSTER OF HARVARD HE HAD DONE THE MOST EXTRAORDINARY ANALYSIS ON ALLEGHENY AND KNEW FAR MORE THAN THE EXISTING MANAGEMENT ABOUT THE COMPANY HE HAD ATTRACTED HUNDREDS OF CONSULTANTS AND PRACTICALLY HAD A LIBRARY OF THESE LOOSELEAF FOLDERS HAMMERING AND CHISELING HE'S GREAT AT THAT'S SORT OF UNUSUAL FOR AN EXINVESTMENT BANKER ALLEGHENY EMERGED FROM BANKRUPTCY PROCEEDINGS RENAMED SUNBEAMOSTER IN 1990 THE REORGANIZATION WAS A BITTER RANCOROUS BUT ULTIMATELY LUCRATIVE STRUGGLE THE INVESTMENT GROUP SPENT ABOUT 205 MILLION TO BUY OUT CREDITORS AND RECAPITALIZE THE NEW ENTITY AND HAS SO FAR RECOUPED ABOUT 160 MILLION OF THAT IT RETAINS ABOUT 682 MILLION SUNBEAMOSTER SHARES WITH A PAPER VALUE OF ABOUT 111 BILLION AS WE LOOKED OVER THE AMOUNT OF FAT TO CUT AND VALUE OF UNDERLYING ASSETS WE REALIZED WE HAD A GOLD MINE SAYS ONE EXECUTIVE INVOLVED IN THE REORGANIZATION WE GOT IT FOR NOTHING WHAT MR KAZARIAN AND HIS ALLIES SAW WAS A FRANCHISE WITH TREMENDOUS NAME RECOGNITION AND FAMILIAR PRODUCTS RANGING FROM TOASTERS AND IRONS TO ELECTRIC BLANKETS THAT WAS BURDENED BY OVERBORROWING ONCE THE DEBT WAS PAID OFF IN THE REORGANIZATION MR KAZARIAN SET ABOUT IMPROVING OPERATING RESULTS BY SLASHING COSTS HE TRIMMED ABOUT 40 OF THE WORK FORCE IN 18 MONTHS A LARGE CHUNK 10 MILLION WAS SLICED FROM THE PROMOTION AND MARKETING BUDGET OF HOUSEHOLD PRODUCTS BY EARLY 1992 THE COMPANY WAS BEGINNING TO REALIZE STRONG EARNINGS FOR THE THIRD QUARTER ENDED SEPT 27 IT EARNED 119 MILLION OR 14 CENTS A SHARE UP 41 FROM A YEAR EARLIER SALES ROSE SOME 11 BUT ABOUT A YEAR AGO MR KAZARIAN'S ALWAYSECCENTRIC BEHAVIOR STARTED BECOMING MORE BIZARRE EXECUTIVES SAY SOME SUNBEAM INSIDERS SAY THAT MR KAZARIAN'S BEHAVIOR WAS OFTEN ARBITRARY AND WOUND UP HURTING PEOPLE NEEDLESSLY WHEN SUNBEAM CONTROLLER HENRY RAUZI HIRED 34YEAROLD LINDA CROCE IN A RELATIVELY LOWLEVEL POSITION AS A 34000AYEAR SENIOR ACCOUNTANT MR KAZARIAN FORCED HIM TO RESCIND THE OFFER BEFORE SHE COULD START LAST FEBRUARY APPARENTLY BECAUSE HE HADN'T GIVEN HIS PERMISSION SHE HAD ALREADY GIVEN NOTICE AT HER OLD JOB WHEN MR RAUZI CALLED MS CROCE AT 10 PM A FEW DAYS BEFORE SHE WAS TO START AND INFORMED HER OF MR KAZARIAN'S DECISION I WAS ASLEEP SAYS MS CROCE I THOUGHT I HAD DREAMT THE WHOLE THING IT WAS A TOTAL SHOCK IT TURNED MY WORLD UPSIDE DOWN SHE HASN'T BEEN ABLE TO FIND ANOTHER JOB MR KAZARIAN CONCEDES THAT HE WITHDREW THE JOB OFFER SAYING SHE WAS HIRED WITHOUT APPROVAL BUT HE SAYS HE TOLD AN EMPLOYEE THAT WE MADE A MISTAKE AND THAT THE COMPANY SHOULD PAY HER A YEAR'S SALARY MS CROCE SAYS SHE GOT NOTHING THAT'S NEWS TO ME SHE SAYS MR KAZARIAN WENT THROUGH THREE SECRETARIES IN TWO YEARS ACCORDING TO SENIOR EXECUTIVES AND DROVE ONE OF HIS SHORTLIVED HIRES AWAY BY LEAVING HIS DOOR OPEN DURING SPEAKERPHONE CONFERENCE CALLS FILLED WITH LEWD ASIDES THAT THE SECRETARY COULD HEAR SHE EVENTUALLY RESIGNED SUCH BEHAVIOR WAS NOT CONFINED TO THE OFFICE SEVERAL EXECUTIVES SAY ONE COMPLAINT CAME FROM A FEMALE WORKER AT CITIZENS PLAZA THE DOWNTOWN PROVIDENCE BUILDING THAT SUNBEAM SHARES WITH PROFESSIONAL FIRMS AND A BANK A SUNBEAM EXECUTIVE SAYS A WOMAN WAS OFFENDED BY LANGUAGE SHE HEARD WHILE RIDING IN AN ELEVATOR WITH MR KAZARIAN AND REGISTERED A COMPLAINT WITH THE COMPANY ON THE STREETS THINGS SEEMED TO WORSEN DRIVING WITH PAUL YOU'D BREAK OUT IN A SWEAT AT EVERY RED LIGHT SAYS A TOP EXECUTIVE THAT'S BECAUSE HE AND OTHERS SAY MR KAZARIAN WOULD SOMETIMES ROLL DOWN HIS WINDOW AND YELL VULGARITIES AT FEMALE PEDESTRIANS MR KAZARIAN DENIES EVER MAKING LEWD COMMENTS IN THE OFFICE OR OUTSIDE THE OFFICE NO ONE WOULD EVER MAKE VULGAR COMMENTS IN MIXED COMPANY HE SAYS MOREOVER HE ADDS THE COMPANY IMPLEMENTED A SEXUALHARASSMENT POLICY SIX MONTHS AGO DESIGNED TO PUNISH OFFENDERS MR KAZARIAN SAYS HE CHANGED SECRETARIES FOR PERFORMANCE REASONS BY THE SPRING OF 1992 SECRETARY AND GENERAL COUNSEL MICHAEL LEDERMAN AND FINANCE OFFICER ROBERT SETRAKIAN MR KAZARIAN'S TWO PARTNERS FROM JAPONICA WERE INCREASINGLY CONTROLLING THE FINANCIAL AND ADMINISTRATIVE ACTIVITIES OF THE FIRM THUS THERE WAS TENSION WITH MR KAZARIAN WHOSE 1991 COMPENSATION WAS 184 MILLION 10 TIMES THAT OF EITHER OF HIS JAPONICA PARTNERS AND WHO HAD BECOME FRUSTRATED AT HIS LOSS OF CONTROL IN ONE INCIDENT HE TOOK A BB GUN A SAMPLE THE COMPANY WAS EXAMINING AS A POSSIBLE PRODUCT AND SHOT IT AT THE VACANT CHAIRS OF EXECUTIVES SHOUTING DIE DIE ACCORDING TO A WITNESS MR KAZARIAN SAYS HE SHOT THE BBS AT TARGETS IN THE OFFICE TO TEST THE GUN BUT DOESN'T RECALL WHERE HE PUT THE TARGETS HE ADDS THAT NO ONE WAS IN THE OFFICE AT THE TIME AND DENIES SAYING DIE DIE MR RAUZI WHO WOULD NOT MAKE AN ACCOUNTING CHANGE ORDERED BY MR KAZARIAN HAD A PINT OF ORANGE JUICE THROWN AT HIM IT MISSED MR KAZARIAN THEN STARTED LIFTING HIS DESK AND SLAMMING IT DOWN SCREAMING SAYS AN EXECUTIVE WHO SAW THE INCIDENT MR KAZARIAN SAYS HE WASN'T TRYING TO HIT THE EMPLOYEE I THREW IT AT THE WALL BEHIND HIS HEAD HE SAYS IF I HAD WANTED TO HIT HENRY WITH THE JUICE CONTAINER I'D HAVE HIT HENRY WITH THE JUICE CONTAINER THE DESK IS TOO HEAVY FOR HIM TO LIFT HE ADDS THOUGH HE ACKNOWLEDGES THAT HE WAS ANGRY FOOTE CONE & BELDING IN CHICAGO GOT A TASTE OF MR KAZARIAN'S MANAGEMENT STYLE LAST FALL THE AGENCY HAD BEEN HIRED IN JULY TO PRODUCE A PRINT AND TELEVISION CAMPAIGN FOR SUNBEAM'S HOUSEHOLD PRODUCTS DIVISION SAYS THE AGENCY'S MR ENGEL WORK ON THE CAMPAIGN WAS SUBSTANTIALLY COMPLETED WITH THE GUIDANCE OF SUNBEAM EXECUTIVES IN CHICAGO WHEN SUNBEAM CALLED ON SEPT 23 TO DEMAND SUBSTANTIAL LASTMINUTE CHANGES MR ENGEL SAYS ADDING THAT A SUNBEAM EXECUTIVE TOLD HIM THE CHANGES HAD BEEN ORDERED BY MR KAZARIAN WHAT'S MORE MR ENGEL SAYS MR KAZARIAN WANTED TO REDUCE THE AD BUDGET TO 300000 FROM THE ORIGINAL 37 MILLION ON SEPT 25 SUNBEAM INFORMED FOOTE CONE THAT MR KAZARIAN HAD DECIDED TO CANCEL THE ENTIRE AD PLAN AND DIDN'T INTEND TO PAY FOOTE CONE FOR ITS WORK MR ENGEL SAYS WE'RE AN AGENCY THAT IS 120 YEARS OLD AND WE'VE NEVER HAD A CLIENT THAT WELSHED ON THEIR MEDIA CONTRACT IT'S BEYOND BELIEF I STILL CAN'T BELIEVE IT HAPPENED HE SAYS MR KAZARIAN CONTENDS IT WAS SPENT WITHOUT HIS AUTHORIZATION ALTHOUGH A SUNBEAM EXECUTIVE SAYS THAT HE EARLIER HAD APPROVED THE EXPENDITURES AS THE END OF LAST YEAR APPROACHED MR KAZARIAN CALLED 50 OF HIS TOP MANAGERS FROM THE US MEXICO AND CANADA TO A PROVIDENCE HOTEL TO DISCUSS BONUSES FOR 1992 AND SALARIES FOR 1993 AT THE MEETING CALLED FOR 6 AM THE SATURDAY BEFORE CHRISTMAS MR KAZARIAN TOLD EXECUTIVES THEY WOULD BE RANKED ON THEIR PERFORMANCE ONE AT A TIME THEY WERE SUMMONED TO AN UPSTAIRS ROOM WHERE MR KAZARIAN WAITED WITH A STENOGRAPHER IT WAS LIKE FRATERNITY HAZING SAYS ONE SENIOR EXECUTIVE HE'D CALL YOU IN AND BERATE YOU ALL OF IT BEING TAKEN DOWN IN NOTES THEN YOU BASICALLY HAD TO KISS HIS RING GET YOUR MONEY AND GET OUT IT WAS AWFUL YET BONUSES ACCORDING TO TOP EXECUTIVES COULD BE HEALTHY UP TO 20 OF OVERALL SALARY MR KAZARIAN DISPUTES THIS ACCOUNT IT WAS A VERY POSITIVE SESSION WHERE EMPLOYEES RECEIVED HANDWRITTEN REVIEWS THE IDEA WAS FOR PEOPLE TO BETTER PRIORITIZE THEIR TIME HE SAYS HE SAYS THAT HE NEVER REFERRED TO ANYONE AS SCUM AS FOR THE 6 AM START ON A SATURDAY MORNING HE SAYS IT WAS A LONG DAY AND WE HAD A LOT TO DO WE NEED WEEKENDS FOR MEETINGS BECAUSE THEY HAVE CONFLICTS THE REST OF THE WEEK BY 830 PM MOST EXECUTIVES HAD FINISHED THEIR REVIEWS AND A CHICKEN DINNER SIX SENIOR MANAGERS MESSRS LEDERMAN SETRAKIAN RAUZI AND CLEGG PLUS SPECIALTY PRODUCTS PRESIDENT JAMES THOMAS AND THE PRESIDENT OF THE INTERNATIONAL DIVISION RICHARD WISSING DROVE TO THE GEORGIAN BRICK HOUSE OF MR LEDERMAN THE EXECUTIVE WHO WAS ALSO ON THE BOARD GATHERED IN THE THIRDFLOOR STUDY THEY DRANK BOURBON AND CLUB SODA AND AGREED AFTER SEVERAL HOURS TO GO OVER MR KAZARIAN'S HEAD TO THE FULL SUNBEAM BOARD A MEMO WAS PASSED OUT WITH A PLAN FOR CONTACTING OTHER BOARD MEMBERS AND PRESENTING THEM WITH EVIDENCE OF MR KAZARIAN'S ACTIVITIES THE FOLLOWING WEEK BOARD MEMBERS WERE CONTACTED AND WERE GIVEN DOZENS OF EXAMPLES IN WRITING OF INCIDENTS INVOLVING PAUL SAID A SENIOR EXECUTIVE WHILE BOARD MEMBERS WERE TRYING TO INDEPENDENTLY CORROBORATE THE STORIES THEY WERE FACED WITH A YEAREND DEADLINE FOR APPROVING MR KAZARIAN'S COMPENSATION BECAUSE IT WAS IMPORTANT NOT TO MAKE PAUL SUSPICIOUS ABOUT WHAT WAS GOING ON A DIRECTOR SAYS THE BOARD APPROVED A SALARY OF 175 MILLION PLUS A BONUS OF ABOUT 1 MILLION THE DIRECTOR ADDS THAT THE COMPANY'S STRONG PERFORMANCE SUPPORTED THE HIGH PAY MEANWHILE THE PLEDGE BY TOP EXECUTIVES TO LEAVE IF MR KAZARIAN WASN'T OUSTED HAD SPREAD FROM THE ORIGINAL SIX TO BETWEEN TWO AND THREE DOZEN EXECUTIVES ACROSS THE COUNTRY THERE WERE CLOSE CALLS AS WHEN A FAX ABOUT A SECRET BOARD MEETING IN CHICAGO WAS INTERCEPTED BY A MIDDLE MANAGER UNAWARE OF THE PLOT THE MANAGER SIMPLY DELIVERED THE FAX TO HIS BOSS' DESK LAST SATURDAY WITH THE GIANT HOUSEWARES TRADE SHOW ABOUT TO BEGIN IN CHICAGO THREE BOARD MEMBERS MET AT THE PALMER HOUSE HOTEL AFTER A DAY OF REVIEWING THE EVIDENCE AND MEETING WITH SOME SENIOR SUNBEAM EXECUTIVES THREE MEMBERS OF WHAT WAS THEN A SIXMEMBER BOARD IN CONSULTATION WITH A FOURTH BY PHONE DECIDED THAT MR KAZARIAN WOULD BE ASKED TO RESIGN SAY SUNBEAM DIRECTORS MR LEDERMAN THE FIFTH AGREED WITH THEM MR KAZARIAN THE SIXTH BOARD MEMBER STILL DIDN'T KNOW OF THE GATHERING ONE KEY ISSUE FOR THE BOARD WAS MR KAZARIAN'S IDEA OF MOVING THE CORPORATE HEADQUARTERS TO TENNESSEE WHICH HE FELT HAD A MORE FAVORABLE TAX STRUCTURE THAN RHODE ISLAND EXECUTIVES SAY THAT THE BOARD NEVER APPROVED THE MOVE AND THAT FELLOW EXECUTIVES BUSY WITH OTHER MATTERS IGNORED MR KAZARIAN'S ATTEMPTS TO INVOLVE THEM IN THE PROJECT BUT HE PROCEEDED TO PREPARE TO BUY AN OFFICE BUILDING AND ADJOINING PROPERTY IN NASHVILLE THAT CALLED INTO QUESTION MR KAZARIAN'S DECISIONMAKING PROCESS SAYS ONE BOARD MEMBER YOU DON'T ALWAYS HAVE TO MAKE THE RIGHT DECISION SAYS THE MEMBER BUT YOU HAVE TO BE THOUGHTFUL ABOUT IT AND TAKE THE PROPER STEPS INCLUDING BOARD APPROVAL MR KAZARIAN SAYS NASHVILLE WAS ONE OF SEVERAL CITIES THAT HE WAS LOOKING AT FOR A POSSIBLE NEW HEADQUARTERS BUT THAT HE NEVER LOOKED AT A BUILDING TO PURCHASE AND THUS DIDN'T NEED TO GET BOARD APPROVAL AT 11 PM THREE DIRECTORS CHARLES DAVIDSON A GENERAL PARTNER AT STEINHARDT PARTNERS PETER LANGERMAN EXECUTIVE VICE PRESIDENT OF MUTUAL SERIES FUND INC AND CHARLES THAYER MANAGING DIRECTOR OF CHARTWELL CAPITAL LTD ARRIVED AT MR KAZARIAN'S HOTEL ROOM AT THE HILTON TOWERS IN CHICAGO MR KAZARIAN WHO WAS IN TOWN FOR THE TRADE SHOW WAS ASKED TO RESIGN WITH BOARD MEMBERS TELLING HIM THAT HIS MANAGEMENT STYLE WAS UNACCEPTABLE MR KAZARIAN WHO CLAIMS HE WASN'T TOLD A REASON REFUSED HE WAS FIRED PETER A LANGERMAN 37 EXECUTIVE VICE PRESIDENT MUTUAL SERIES FUND RODERICK M HILLS 61 INTERNATIONAL PRACTICE GROUP CHAIRMAN SHEA & GOLD CHARLES J THAYER 48 MANAGING DIRECTOR CHARTWELL CAPITAL LTD MICHAEL G LEDERMAN 39 VICE PRESIDENT SECRETARY AND GENERAL COUNSEL SUNBEAMOSTER 9301140100 930114 YOUR MONEY MATTERS INVESTMENT DARTBOARD HEALTHTRUST APPLE PUT PROS AHEAD OF DARTS BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL IN A CLOSE RACE THAT WENT DOWN TO THE WIRE BOSTON MONEY MANAGER JERRY ZUKOWSKI WON HIS SECOND CONSECUTIVE VICTORY IN THIS COLUMN'S STOCKPICKING CONTEST MR ZUKOWSKI SCORED A 407 GAIN OVER THE PAST SIX MONTHS WITH THE STOCK HE RECOMMENDED IN JULY HEALTHTRUST INC HE EDGED OUT SAN DIEGO INVESTMENT CONSULTANT DAVID MORSE WHO GAINED 35 WITH APPLE COMPUTER INC COLLECTIVELY THE FOUR INVESTMENT PROFESSIONALS IN THE CONTEST RACKED UP A 141 ADVANCE FROM JULY 7 THROUGH DEC 31 EASILY BEATING A QUARTET OF STOCKS SELECTED BY A TOSS OF DARTS AT THE STOCK LISTINGS THE DARTBOARD PORTFOLIO ROSE 18 IN THE PERIOD IN A SERIES OF 31 OVERLAPPING SIXMONTH CONTESTS THE PROS HAVE WON 17 THE DARTS 14 THE AVERAGE SIXMONTH GAIN HAS BEEN 92 FOR THE PROS 55 FOR THE DARTS FOR MR ZUKOWSKI COMANAGER OF PUTNAM FUND FOR GROWTH & INCOME HIS LATEST VICTORY WAS SWEET THE PREVIOUS ONE WAS BITTERSWEET ALL FOUR CONTESTANTS HAD SUFFERED LOSSES WITH MR ZUKOWSKI HAVING THE SMALLEST LOSS INCLUDING MR ZUKOWSKI 11 PEOPLE HAVE WON THE CONTEST MORE THAN ONCE SINCE IT BEGAN IN 1988 NOW HE WILL TRY TO JOIN THE SELECT CIRCLE CURRENTLY ONLY THREE PEOPLE WHO HAVE WON THREE TIMES OR MORE JAMES MORGAN PRESIDENT OF INTERSTATE/JOHNSON LANE HAS SIX WINS AS DOES JONATHAN STEINBERG PUBLISHER OF INDIVIDUAL INVESTOR MAGAZINE REMY FISHER ANALYST WITH KEMPER FINANCIAL SERVICES HAS THREE WINS FOR HIS NEXT PICK MR ZUKOWSKI CHOOSES ARKANSAS BEST CORP A TRUCKING COMPANY BASED IN FORT SMITH ARK I FEEL THAT BY MAY OR JUNE EITHER THE ECONOMY WILL HAVE TURNED UP STRONGLY OR THE GOVERNMENT IS GOING TO DO THINGS TO STIMULATE IT HE SAYS SO HE'S TILTING HIS PORTFOLIO TO CYCLICAL STOCKS LIKE TRUCKERS ARKANSAS BEST STARTED TRADING IN MAY SEVERAL YEARS AFTER THE COMPANY WENT PRIVATE IN A LEVERAGED BUYOUT BEFORE THE LBO MR ZUKOWSKI SAYS THE COMPANY HAD BEEN A FLABBY CONGLOMERATE BUT IT HAS BECOME A LEAN OUTFIT THAT GETS MORE THAN 90 OF ITS BUSINESS FROM TRUCKING IT ALSO HAS A TIRERETREADING OPERATION THE STOCK WAS TRADING YESTERDAY AT 15 OVER THE COUNTER THAT IS LESS THAN 12 TIMES THE 130 IN PROFIT THAT MR ZUKOWSKI EXPECTS THE COMPANY TO EARN THIS YEAR HE THINKS A PRICE/EARNINGS RATIO OF 14 IS A RATIONAL MINIMUM SO HE FIGURES A 20 TO 40 GAIN IN THE STOCK WITHIN A YEAR IS REALISTIC HE WOULD BUY IT AT PRICES UP TO 17 MANAGEMENT HAS BEEN IN PLACE FOR MORE THAN 20 YEARS HE SAYS AND OWNS ABOUT 10 OF THE STOCK I LOVE THAT WHEN THESE GUYS HAVE A TREMENDOUS VESTED INTEREST ALSO HE SAYS THE COMPANY IS EXPERT IN USING COMPUTERS TO PLAN ROUTING EFFICIENTLY SO IT TYPICALLY TRANSFERS A PIECE OF FREIGHT FROM ONE TRUCK TO ANOTHER FEWER TIMES THAN COMPETITORS MR MORSE PRESIDENT OF FORD INVESTOR SERVICES INC AND FORD CAPITAL MANAGEMENT INC WILL TRY TO IMPROVE ON HIS STRONG SECONDPLACE SHOWING HE PICKS LORAL CORP OF NEW YORK A DEFENSEELECTRONICS COMPANY MR MORSE ISN'T BLIND TO THE LOOMING CUTS IN DEFENSE SPENDING BUT HE THINKS LORAL WILL LARGELY BE SPARED THE BUDGET AX BECAUSE IT IS IN THE RIGHT SEGMENT AND BECAUSE IT IS CONCENTRATING ON UPGRADING EXISTING WEAPONS SYSTEMS WHAT'S MORE MR MORSE SAYS LORAL IS DOING A GOOD JOB OF PUSHING INTO NONDEFENSE AREAS SUCH PROJECTS MAKE UP ABOUT 20 OF SALES LORAL STOCK AT 50 SELLS FOR ONLY ABOUT 11 TIMES FISCAL 1993 EARNINGS ESTIMATES 445 A SHARE MR MORSE WOULD BUY AT ANY PRICE BELOW 50 AND THINKS A FAIR PRICE WOULD BE 60 TRYING HER HAND AT THE CONTEST FOR THE FIRST TIME IS ELAINE HAHN PRESIDENT OF HAHN CAPITAL MANAGEMENT IN SAN FRANCISCO HER CHOICE POWELL INDUSTRIES INC OF HOUSTON MAKES EQUIPMENT THAT CONTROLS THE FLOW OF ELECTRICITY IN INDUSTRIAL SETTINGS LIKE UTILITIES REFINERIES AND PAPER MILLS IT ALSO MAKES GAS TURBINES A SMALL COMPANY POWELL IS FOLLOWED BY FEW ANALYSTS MS HAHN SAYS IT WILL BENEFIT FROM THE REVISED CLEAN AIR ACT WHICH WILL FORCE INDUSTRIES TO RETROFIT THEIR PLANTS TO REDUCE EMISSIONS SHE SAYS POWELL'S CUSTOMERS HAVE BEEN DELAYING ORDERS WAITING FOR AN INVESTMENT TAX CREDIT TO BE PASSED IN 1993 IF PASSED SUCH A CREDIT WILL CREATE A BOOM FOR POWELL SHE BELIEVES SHE ALSO THINKS POWELL WILL SUCCEED IN ITS LATEST VENTURE MUNICIPAL MASS TRANSIT AT 775 YESTERDAY IN OVERTHECOUNTER TRADING POWELL IS SELLING FOR ONLY NINE TIMES ESTIMATED FISCAL 1993 EARNINGS MS HAHN WOULD PAY UP TO 10 WITH A TARGET OF 16 A YEAR FROM NOW STEVE NEWBY THE OTHER NEW CONTESTANT IS PRESIDENT OF NEWBY & CO A BROKERAGE HOUSE IN ROCKVILLE MD HE SEES AGING BABY BOOMERS PAYING INCREASED ATTENTION TO INVESTING AND CONCLUDES THAT THE MUTUALFUND BOOM HAS FURTHER TO GO HIS SELECTION EATON VANCE CORP OF BOSTON RUNS ABOUT 12 BILLION IN MUTUAL FUNDS MANY OF THEM TAXFREE BOND FUNDS ITS COMPETITORS LIKE T ROWE PRICE AND FRANKLIN GROUP SELL AT OVER 20 TIMES EARNINGS MR NEWBY SAYS IF EATON VANCE SOLD FOR 15 TIMES EARNINGS THE STOCK WOULD BE AT 45 IT WAS TRADING YESTERDAY AT 3250 OVER THE COUNTER LAST YEAR EATON VANCE INCREASED ITS DIVIDEND TWICE AND SPLIT ITS STOCK GOOD SIGNS IN MR NEWBY'S VIEW HE WOULD PAY UP TO 33 FOR THE SHARES AND EXPECTS THEM TO REACH 45 TO 60 WITHIN A YEAR IN THE COMING SIX MONTHS THE PROFESSIONALS' PICKS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF CONCORD FABRICS INC CIS FAIRCHILD CORP FA MESTEK INC MCC AND UNIVERSITY PATENTS INC UPT 9301140099 930114 LEISURE & ARTS TV OIL EPIC SHEPHERD'S FEMME FATALE HEPBURN'S HEPBURN BY DOROTHY RABINOWITZ THE LAVISHLY PRODUCED EIGHTPART EPIC BASED ON DANIEL YERGIN'S HISTORY OF OIL CONCLUDES TONIGHT WITH A FIRST HOUR DEALING WITH ALL THE OIL CRISES AND MILITARY OPERATIONS TO HAVE TAKEN PLACE IN THE GULF SINCE THE BRITISH DEPARTED AND A FINAL ONE ABOUT ENERGY AND ENVIRONMENTAL ISSUES ALL OF THIS IS LIKE THE EARLIER CHAPTERS OF THIS OPUS THAT BEGAN AIRING MONDAY UNFAILINGLY COLORFUL WHAT WITH ITS ARTFUL SETTINGS OUTSPOKEN INTERVIEWEES AND IF ONE MAY USE THE TERM ENERGY ALSO LIKE THE REST OF THE SERIES THE LAST CHAPTERS TEND TO OVERREACH IN PORTRAYING OIL AS THE ROOT MOTIVE FOR PRACTICALLY EVERYTHING THAT HAS HAPPENED IN THE 20TH CENTURY FROM THE POINT OF VIEW OF THIS PRODUCTION FOR INSTANCE THE CENTRAL SIGNIFICANCE OF JAPANESE WAR LEADER HIDEKI TOJO'S ATTEMPTED SUICIDE WHEN JAPAN SURRENDERED WAS THE FACT THAT THERE WASN'T ENOUGH FUEL TO GET HIM TO A HOSPITAL IT WOULD BE WELL TO TAKE SEVERAL GRAINS OF SALT WITH THIS OIL STORY BUT ITS STRETCHES ASIDE IT IS TO THE END AN IMPRESSIVELY FORCEFUL WORK THIS IS THE STORY OF A PHOENIX BELLE CYBILL SHEPHERD WHO BEWITCHES MEN INTO DOING HER FAVORS THAT INCLUDE MURDER ATTEMPTED MURDER AND LOTS MORE OF THE KIND THAT HOWEVER IS ALL THAT'S CLEAR ABOUT JENNIFER MILLER'S EXTRAORDINARILY CONFUSED SCREENPLAY POSSIBLY THE LONGEST FOUR HOURS OF THE TVMOVIE SEASON MS SHEPHERD SWIMS ABOUT IN THIS MARSH OF ENDLESS SUBPLOTS SUSPECTS AND TWADDLE IN A STATE OF SERENE STUPEFACTION ACCOMPANYING HER IN THE ROLE OF A DETECTIVE IS KEN OLIN THIRTYSOMETHING WHO GOES ABOUT LOOKING EXTREMELY GLUM FOR WHICH GIVEN THE CIRCUMSTANCES NO ONE CAN BLAME HIM EXDELTA FORCE COMMANDOS SET FORTH TO RETRIEVE A CHILD KIDNAPPED BY HER FATHER IN 1987 AND TAKEN TO LIVE IN JORDAN A FACTBASED FILM IT HAS ROUGHLY THE SAME THEME AS A PREDECESSOR NOT WITHOUT MY DAUGHTER THIS ONE IS HELPED ALONG NO END BY MARIEL HEMINGWAY CONVINCING IN THE ROLE OF A BEREFT MOTHER WHOSE SMALL DAUGHTER HAS BEEN CARRIED OFF TO A REMOTE MOUNTAIN VILLAGE RESCUE SEEMS IMPOSSIBLE THOUGH NOT WHEN THE DELTA FORCE COMMANDOS GET TO WORK THE STRAIGHTFORWARD SCRIPT YIELDS A STORY ENTIRELY WITHOUT SUBTLETIES BUT ONE NEVERTHELESS EFFECTIVELY CHARGED WITH MENACE KATHARINE HEPBURN'S SELFPORTRAIT BEGINS WITH A GLOWING REMINISCENCE OF A CHILDHOOD EDEN IN CONNECTICUT WHERE SHE GREW UP THE TOMBOY DAUGHTER OF IDEAL PARENTS WHO WERE INDEPENDENTMINDED AND IN THEIR DAUGHTER'S VIEW THE TWO MOST REMARKABLE PEOPLE SHE HAD EVER KNOWN IN 1928 SHE MARRIED A GENT CALLED LUDDY OR AS SHE IS WONT TO REFER TO HIM IN HER RECENTLY PUBLISHED BIOGRAPHY POOR LUDDY MS HEPBURN REFLECTS ON THE FIVEYEAR MARRIAGE IN TERMS OF THE ROSIEST AFFECTION THOUGH THIS BRUSH WITH MATRIMONY WAS SHE ALSO INDICATES AN EXPERIENCE THAT TAUGHT HER SHE SHOULD NOT TRY IT AGAIN THE DETAILS OF MS HEPBURN'S PERSONAL LIFE HERE ARE PLEASANTLY SCANT THOUGH WE DO GET A RUNTHROUGH OF HER BRIDAL WARDROBE ON THE OTHER HAND THERE IS PLENTY ON HER CAREER AND LEADING MEN NONE OF IT DULL MOST OF IT EXUBERANT OR COLORED BY A TONE THAT CAN ONLY BE CALLED ASSERTIVELY UNTROUBLED AND WHY NOT WENDY HILLER STARS AS THE AGED ALICE OF THE TITLE A FORMER GREAT BEAUTY NOW LIVING IN GENTEEL POVERTY WITH A DOUR DAUGHTER ZOE WANAMAKER THE PLOT OF ALLAN CUBITT'S SCREENPLAY CONCERNS THAT DAUGHTER'S MYSTERIOUS ORIGINS AND THE COUNTESS'S PAST IN WORLD WAR II AS WIFE OF A GERMAN OFFICER IT IS A SLIGHT STORY MADE ENGROSSING BY MS HILLER WHOSE SCENES ARE SPECTACULAR THERE IS ONE IN PARTICULAR IN WHICH THE COUNTESS IN HER 80S POSES FOR A SPREAD IN A MODISH LONDON MAGAZINE THE LIGHT OF COQUETTISHNESS IN MS HILLER'S EYES AS THEY MEET THE CAMERA THE GLOW OF YOUTH AND SAUCY BEAUTY THOSE EYES STILL MANAGE TO SUGGEST ARE ALL THE REASON ANYONE NEEDS TO WATCH THIS 9301140098 930114 ECONOMY AUTO SALES SLOWED IN EARLY JANUARY GM PLANS TO CUT 1400 JOBS IN ONTARIO BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE PACE OF DOMESTIC CAR AND LIGHTTRUCK SALES SKIDDED IN EARLY JANUARY FROM THE PREVIOUS 30 DAYS WHEN CONSUMERS WERE RUSHING TO TAKE ADVANTAGE OF YEAREND PRICE WARS SEPARATELY GENERAL MOTORS CORP SAID IT PLANS TO CUT AS MANY AS 1400 JOBS NEXT YEAR AT TWO OSHAWA ONTARIO CAR PLANTS AFTER THE FACILITIES ARE RETOOLED FOR A REDESIGNED MIDSIZE MODEL THE CUTS COULD FORESHADOW SIMILAR ACTIONS AT OTHER FACILITIES AS GM'S NORTH AMERICAN OPERATIONS STRIVE TO CLOSE A 795ACAR COST DISADVANTAGE WITH FORD MOTOR CO THE ANNUALIZED SALES PACE FOR DOMESTIC CARS AND LIGHT TRUCKS WAS 91 MILLION VEHICLES IN THE FIRST 10 DAYS OF JANUARY UNCHANGED FROM A YEAR EARLIER BUT DOWN FROM DECEMBER'S 112 MILLION PACE LIGHTTRUCK SALES WHICH BUOYED THE AUTO MARKET IN MOST OF 1992 COOLED IN EARLY JANUARY TO A 38 MILLIONVEHICLE PACE FROM A 46 MILLIONVEHICLE RATE IN DECEMBER CAR SALES SLID TO A RATE OF 53 MILLION ANNUALLY FROM A SEASONALLY ADJUSTED 66 MILLION PACE LAST MONTH A YEAR EARLIER DOMESTIC CARS ALSO WERE SELLING AT A 53 MILLIONVEHICLE PACE DEALERS AND AUTO INDUSTRY ANALYSTS SAID THE JANUARY SLOWDOWN WAS A PREDICTABLE FOLLOWUP TO THE YEAREND RUSH TO MEET MANUFACTURERS' SALES GOALS IN PARTICULAR DECEMBER CAR SALES WERE INFLATED BY FORD'S ALLOUT PUSH ON ITS TAURUS MODEL WHICH RODE RECORD DECEMBER SALES TO UNSEAT THE HONDA ACCORD AS THE BESTSELLING CAR IN THE US THERE IS PAYBACK SAID RONALD GLANTZ AN ANALYST WITH DEAN WITTER IN SAN FRANCISCO THEN WE WILL GO BACK TO NORMAL IN FEBRUARY DEALERS EXPRESSED MEASURED OPTIMISM DESPITE THE EARLYJANUARY SLUMP WE THINK WE ARE IN A RECOVERING ECONOMY SAID DON MEALEY AN ORLANDO FLA DEALER WITH FORD INFINITI MITSUBISHI AND ACURA FRANCHISES WE HAVE LEARNED TO LIVE AND SURVIVE WITH SOME OF THE FRANCHISES HAVING LOWER VOLUME THAN WE USED TO EXPECT OVERALL US CONSUMERS PURCHASED 92295 VEHICLES IN THE EARLYJANUARY SALES PERIOD DOWN FROM 114112 VEHICLES A YEAR EARLIER THERE WERE SEVEN SELLING DAYS IN THE LATEST PERIOD COMPARED WITH EIGHT A YEAR EARLIER FORD WHICH STAGED A HEATED SALES CONTEST IN LATE DECEMBER TO RECLAIM ITS LEAD IN US CAR SALES SAW ITS EARLYJANUARY CAR AND TRUCK SALES IMPROVE BY 19 DESPITE A 91 DECLINE IN ITS TRUCK SALES THE BIG PUSH WAS ON TAURUS AND TO SOME EXTENT OTHER VEHICLES BECAME STEPCHILDREN A FORD SPOKESMAN SAID BY CONTRAST GM HAD A 15 DECLINE IN TOTAL CAR AND TRUCK SALES FOR EARLY JANUARY THE NO 1 AUTO MAKER SOLD 58116 VEHICLES IN THE PERIOD DOWN FROM 77699 A YEAR EARLIER I HOPE IT IS NOTHING MORE THAN A GLITCH OF PEOPLE SPENT OUT FROM THE CHRISTMAS HOLIDAY A GM SPOKESMAN SAID REGARDING THE WORKFORCE CUTS AT THE OSHAWA FACTORIES A GM SPOKESWOMAN SAID THE AUTO MAKER PLANS TO SHUT THE TWO ASSEMBLY LINES IN NOVEMBER FOR AN EXTENSIVE RETOOLING THEN BEGIN BUILDING A REDESIGNED VERSION OF THE CHEVROLET LUMINA SEDAN IN THE SPRING OF NEXT YEAR THE TWIN PLANTS CURRENTLY EMPLOY 7400 HOURLY WORKERS BUILDING THE LUMINA AND A SISTER CAR THE BUICK REGAL BUT ONLY ABOUT 6000 OF THEM WILL BE CALLED BACK BECAUSE OF IMPROVEMENTS IN THE FACTORY LAYOUT AND VEHICLE DESIGN THE SPOKESWOMAN SAID BY 1996 GM IS EXPECTED TO MAKE SIMILAR IMPROVEMENTS IN THE DESIGN AND MANUFACTURE OF THE LUMINA'S SISTER CARS THE REGAL OLDSMOBILE CUTLASS SUPREME AND PONTIAC GRAND PRIX SEPARATELY CHRYSLER CORP HAD A 19 INCREASE IN CAR AND TRUCK SALES IN EARLY JANUARY ACCORDING TO AN ESTIMATE BY WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION CHRYSLER RELEASES ITS SALES FIGURES AT MONTH'S END SOME OF THE LEADING JAPANESE AUTO MAKERS FARED POORLY IN EARLYJANUARY US SALES HONDA MOTOR CO'S SALES DROPPED 37 TO 6444 CARS WHILE TOYOTA MOTOR CORP SOLD 8307 VEHICLES A 20 SLIDE FROM A YEAR EARLIER NISSAN STOOD APART FROM ITS JAPANESE RIVALS POSTING A 21 INCREASE WITH SALES OF 2920 VEHICLES NISSAN'S FORTUNES HAVE PICKED UP WITH THE LAUNCH OF ALTIMA ITS LATEST OFFERING IN THE MIDSIZE SEDAN SEGMENT 9301140097 930114 WHO'S NEWS US BANCORP US BANCORP PORTLAND ORE EDMUND P JENSEN 55 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BANK HOLDING COMPANY WAS NAMED A VICE CHAIRMAN SUCCEEDING HIM AS PRESIDENT IS KEVIN R KELLY 43 FORMERLY PRESIDENT OF COMPANY'S US BANK OF OREGON UNIT MR JENSEN RETAINS THE POST OF CHIEF OPERATING OFFICER OF THE HOLDING COMPANY ALSO NAMED A VICE CHAIRMAN WAS GERRY B CAMERON 54 FORMER PRESIDENT OF THE COMPANY'S US BANK OF WASHINGTON UNIT A SPOKESWOMAN SAID THE CHANGES WERE PART OF AN ONGOING STRATEGIC DEVELOPMENT PLAN 9301140096 930114 TECHNOLOGY TANDY EXPECTS SALES AT TWO MEGASTORES TO HIT 60 MILLION FORT WORTH TEXAS TANDY CORP SAID IT EXPECTS SALES AT ITS TWO INCREDIBLE UNIVERSE MEGASTORES TO HIT ABOUT 60 MILLION EACH IN THEIR FIRST YEAR IN THE MIDDLE OF A REVENUE RANGE THE COMPANY OUTLINED TO ANALYSTS IN OCTOBER IN DISCLOSING THE ESTIMATE THE COMPUTER AND ELECTRONICS RETAILER WAS SEEKING TO COUNTER SKEPTICISM ABOUT THE PROSPECTS FOR ITS NEW RETAILING CONCEPT WHICH IS BEING CLOSELY WATCHED BY MANY IN THE INDUSTRY THE COMPANY SAID ITS NEW ESTIMATE WAS BASED ON AN ANNUALIZED ANALYSIS OF DECEMBER SALES WHICH WEREN'T DISCLOSED THE COMPANY SAID IT HAD TOLD ANALYSTS THAT EACH OF THE STORES COULD GENERATE 45 MILLION TO 85 MILLION IN SALES IN THE FIRST YEAR ALTHOUGH IN APRIL WHEN THE COMPANY ANNOUNCED PLANS TO DEVELOP THE CONSUMER ELECTRONICS MEGASTORES IT SAID SALES COULD REACH 100 MILLION COMPANY OFFICIALS SAY THE HIGHER ESTIMATE MAY STILL BE ATTAINABLE IN THE FUTURE WHEN THIS FORMAT IS MATURE THAT POTENTIAL EXISTS A TANDY SPOKESMAN SAID THAT'S CONSISTENT WITH WHAT'S ACHIEVABLE IN MEGASTORE FORMATS TANDY CURRENTLY OPERATES TWO INCREDIBLE UNIVERSE OUTLETS IN ARLINGTON TEXAS AND PORTLAND ORE THE COMPANY EARLIER THIS WEEK VOWED TO EXPAND THE CHAIN AS PART OF A BROAD RESTRUCTURING AT TANDY THE OVERSIZED STORES FILL OVER 160000 SQUARE FEET WITH A WIDE RANGE OF CONSUMER ELECTRONICS AND HOME APPLIANCES AND AMENITIES SUCH AS KARAOKE BARS A RESTAURANT AND LARGESCREEN TV THEATERS 9301140094 930114 MARKETING & MEDIA NBC PRODUCER OF TODAY' ADDS ROLE AT NIGHTLY NEWS NEW YORK IN AN UNUSUAL MOVE NBC NEWS EXPANDED THE DUTIES OF ITS MORNING TODAY SHOW'S EXECUTIVE PRODUCER TO INCLUDE A NEW ROLE AS EXECUTIVE PRODUCER OF ITS NIGHTLY NEWSCAST JEFF ZUCKER A 27YEAROLD WUNDERKIND WHO HAS PUSHED THE ONCEAILING TODAY TO A STRONG NO 2 POSITION AND GAINING IN HIS FIRST YEAR AS EXECUTIVE PRODUCER WILL ALSO TAKE OVER NBC NIGHTLY NEWS WITH TOM BROKAW HE SUCCEEDS STEVE FRIEDMAN WHO HAS BEEN UNABLE TO MOVE THE PROGRAM OUT OF THIRD PLACE IN THE NEWS RATINGS SINCE TAKING IT OVER IN JUNE 1990 MR ZUCKER'S APPOINTMENT WILL MAKE FOR LONG DAYS TODAY AIRS FROM 7 TO 9 AM WHILE NIGHTLY NEWS AIRS AT 630 PM I'LL WORK VERY HARD THERE'S NO DENYING IT HE SAID WHILE MANY AT THE NETWORK QUESTIONED WHY NBC COULDN'T FIND MORE THAN ONE PERSON FOR THE TWO JOBS MR ZUCKER SAID THE COMBINATION OF DUTIES WHICH MAY TURN OUT TO BE TEMPORARY MAKES SENSE BECAUSE THE TWO SHOWS ALREADY WORK SO CLOSELY TOGETHER IT'S THE SAME NEWS ON BOTH SHOWS HE SAID MR FRIEDMAN WHO SAID HE WAS PLEASED WITH THE IMPROVEMENTS HE HAS MADE IN THE JOURNALISM ON NIGHTLY NEWS BUT WAS DISAPPOINTED THAT THE RATINGS AREN'T HIGHER WILL BECOME EXECUTIVE PRODUCER OF A NEW PRIMETIME NEWS SHOW AT NBC HE SAID IT WILL BE A HARDEDGD INVESTIGATIVE PROGRAM WITH SEVERAL STORIES ON A SINGLE THEME TOLD FROM THE PERSPECTIVE OF THE PARTICIPANTS NOT THE REPORTERS THE GENERAL ELECTRIC CO UNIT ALSO GAVE JEFFREY GASPIN CURRENT VICE PRESIDENT OF DEVELOPMENT ADDITIONAL RESPONSIBILITIES OVERSEEING PRIMETIME NEWS PROGRAMS INCLUDING THE NEW PROGRAM 9301140093 930114 LABOR AGENCY MAY DELAY ACTION ON SMOKING POLICIES WASHINGTON THE LABOR DEPARTMENT APPEARS READY TO LEAVE WORKPLACE POLICIES ON SECONDHAND CIGARETTE SMOKE TO BILL CLINTON'S TEAM DOROTHY STRUNK ACTING ADMINISTRATOR AT THE DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION SAID IN AN INTERVIEW THAT SHE RECOMMENDED TO LABOR SECRETARY LYNN MARTIN THAT THE DEPARTMENT COLLECT MORE DATA ON SECONDHAND SMOKE IN THE WORKPLACE BEFORE THE AGENCY ACTS LAST WEEK THE ENVIRONMENTAL PROTECTION AGENCY DECLARED PASSIVE SMOKE A HUMANLUNG CARCINOGEN SETTING OFF A FLURRY OF ACTIVITY IN THE LABOR DEPARTMENT OVER WHETHER TO SET RULES FOR WORKPLACES BEFORE THE NEW ADMINISTRATION TAKES NEXT WEDNESDAY BUT MS STRUNK SAID SHE TOLD SECRETARY MARTIN THAT THE EPA STUDY FOCUSED PRIMARILY ON HOUSEHOLD SMOKING RATHER THAN ON WORKPLACE CONDITIONS WE NEED MORE WORKPLACE DATA BEFORE WE CAN MOVE FORWARD WITH REGULATIONS ON PASSIVE SMOKE MRS STRUNK SAID SHE TOLD SECRETARY MARTIN I DON'T KNOW AT WHAT LEVEL SECONDHAND SMOKE IS HARMFUL IN THE WORKPLACE WHILE MS STRUNK'S RECOMMENDATION DOESN'T RULE OUT ACTION ON PASSIVE SMOKE IT MAKES IT LESS LIKELY THAT MS MARTIN WILL ACT WITHOUT THE RECOMMENDATION OF HER TOP AIDE ON THE SUBJECT 9301140092 930114 FORD AND MAZDA CONTINUE EUROPEAN VENTURE TALKS DETROIT FORD MOTOR CO AND MAZDA MOTOR CORP SAID THEY ARE STILL DISCUSSING JOINT PRODUCTION OF A VEHICLE FOR THE EUROPEAN MARKET BUT A FORD SPOKESMAN SAID WORSENING ECONOMIC CONDITIONS IN EUROPE HAVE CAST A CLOUD OVER THE PLAN A MAZDA SPOKESMAN REACTING TO JAPANESE NEWS REPORTS THAT THE EUROPEAN VENTURE COULD BE ABANDONED SAID YESTERDAY THAT TALKS WITH FORD ARE CONTINUING AND WE HOPE TO CONCLUDE THE TALKS IN THE NEXT 30 TO 60 DAYS BUT A SPOKESMAN FOR FORD WHICH OWNS A 25 SHARE OF MAZDA SAID THAT THE TWO COMPANIES AREN'T CLOSE TO AN AGREEMENT MAZDA WHICH LAST YEAR LAUNCHED A WAVE OF NEW MODELS HAS BEEN FORCED TO SLASH SPENDING IN RECENT MONTHS AS A SALES SLUMP IN JAPAN HAS BATTERED ITS FINANCES WITHIN THE PAST YEAR MAZDA KILLED A PREVIOUSLY ANNOUNCED PROGRAM TO BEGIN A LUXURY CAR DIVISION IN THE US AND SOLD TO FORD AN EQUITY STAKE IN ITS ASSEMBLY PLANT IN FLAT ROCK MICH 9301140091 930114 BUSINESS BRIEF CENTRAL & SOUTH WEST IS NEGOTIATING FOR ACQUISITION OF EL PASO ELECTRIC CO DALLAS CENTRAL & SOUTH WEST CORP SAID IT IS NEGOTIATING TO BUY EL PASO ELECTRIC CO WHICH IS CURRENTLY OPERATING UNDER BANKRUPTCYCOURT PROTECTION CENTRAL & SOUTH WEST HAS MADE FORMAL OFFERS TO ALL THREE OF EL PASO'S CREDITOR COMMITTEES AND TO THE COMPANY ITSELF BUT CENTRAL & SOUTH WEST STILL WANTS TO TALK TO REGULATORS IN TEXAS BEFORE IT MAKES A FORMAL OFFER TO THE BANKRUPTCY COURT OVERSEEING EL PASO'S CASE IN AUSTIN IF THE LONGRUMORED BUYOUT IS SUCCESSFUL CENTRAL & SOUTH WEST SAID EL PASO WOULD EMERGE FROM CHAPTER 11 PROTECTION AS A DIRECT WHOLLY OWNED OPERATING SUBSIDIARY THE COMPANY DECLINED TO COMMENT FURTHER ABOUT A POSSIBLE ACQUISITION CENTRAL & SOUTH WEST ISN'T THE ONLY COMPANY SNIFFING AROUND EL PASO SOUTHWESTERN PUBLIC SERVICE CO OF AMARILLO TEXAS HAS SAID PUBLICLY THAT IT WANTS TO BUY EL PASO AND THERE IS TALK OF ONE OTHER SERIOUS BUT STILL UNIDENTIFIED SUITOR AS WELL AS A HOST OF OTHER TEXAS UTILITIES THAT ARE SAID TO BE INTERESTED NO PURCHASE PRICE HAS BEEN MENTIONED BY ANY POTENTIAL SUITOR OR EVEN BY EL PASO BUT UTILITIES ANALYST ALFRED MAZZORANA OF FURMAN SELZ INC SAID EL PASO PROBABLY WILL FETCH 13 BILLION TO 18 BILLION EXCLUDING CERTAIN LEASED CAPACITY OF THE PALO VERDE NUCLEAR PLANT IN NEW MEXICO EL PASO BASED IN EL PASO TEXAS IS AN ATTRACTIVE MERGER CANDIDATE BECAUSE OF ITS TRANSMISSION LINES AND ITS CONNECTIONS TO THE MEXICAN MARKET SOME ANALYSTS SAY EL PASO WHICH FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION A YEAR AGO CONFIRMED ITS DISCUSSIONS WITH CENTRAL & SOUTH WEST BUT SAID IN A STATEMENT THAT THE DISCUSSIONS ARE PRELIMINARY IT ALSO SAID IT IS IN DISCUSSIONS WITH OTHER MERGER CANDIDATES AND IS EXPLORING ALL OPTIONS INCLUDING EMERGING AS A STANDALONE COMPANY EL PASO HAD PLANNED TO EMERGE FROM CHAPTER 11 PROTECTION AS A STANDALONE COMPANY BUT THAT PLAN FILED LAST SEPTEMBER WAS ALREADY UNDER CONSIDERABLE FIRE FROM THE CREDITORS' COMMITTEES THE EL PASO PLAN WILL NOT SURVIVE PREDICTED PAUL PARSHLEY UTILITIES ANALYST WITH LEHMAN BROTHERS WHAT THEY NEED IS A WHITE KNIGHT TO COME IN THERE CENTRAL & SOUTH WEST MAY BE THAT KNIGHT INDEED SOME INDUSTRY OBSERVERS BELIEVE EL PASO CAN'T MAKE IT ON ITS OWN WILBUR ROSS WHO REPRESENTS THE FIRSTMORTGAGE AND SECONDMORTGAGE BONDHOLDERS FAVORS A MERGER LEFT TO ITS OWN EL PASO WOULD HAVE TO IMPOSE HIGHER RATES THAN IF IT WERE ACQUIRED HE SAID REGULATORS USUALLY ARE UNWILLING PASS ALONG HIGHER RATES TO RATEPAYERS WHEN THERE IS AN ALTERNATIVE SUCH AS A BUYOUT CENTRAL & SOUTH WEST HAS BEEN SAYING FOR A YEAR THAT IT'S IN THE MARKET TO BUY ANOTHER UTILITY BUT BEFORE NOW DIDN'T HAVE ANY PARTICULAR COMPANY IN MIND THE DALLAS COMPANY IS CASH RICH IN 1991 IT HAD 450 MILLION IN CASH FLOW AFTER DIVIDENDS WITH VERY LOW DEBT 9301140089 930114 US AGREES TO SELL BONDS FOR ARGENTINA DEBT PACT WASHINGTON THE US TREASURY AGREED TO SELL ARGENTINA ABOUT 185 BILLION IN ZEROCOUPON BONDS FOR THAT COUNTRY'S DEBTREDUCTION ACCORD WITH COMMERCIAL BANKS OBVIATING THE NEED FOR ARGENTINA TO PURCHASE SUCH SECURITIES IN THE SECONDARY MARKET THE PRICE OF THE 30YEAR ZEROS WILL BE BASED ON THE PREVAILING SECONDARYMARKET PRICE FOR TREASURY SECURITIES THAT MATURE IN 2022 PLUS A FEE THE ZEROCOUPON SECURITIES TO BE PURCHASED BY ARGENTINA WILL BE USED AS COLLATERAL TO BACK SECURITIES THE COUNTRY PLANS TO ISSUE AS PART OF ITS DECEMBER DEBTRESTRUCTURING ACCORD THAT ACCORD IS EXPECTED TO BE MADE FINAL THIS SPRING THE TREASURY SAID A TREASURY SPOKESMAN SAID THE DEPARTMENT DECIDED TO ISSUE THE BONDS TO ARGENTINA DIRECTLY BECAUSE THE SECONDARY MARKET FOR SUCH SECURITIES IS SO THIN SPECULATION THAT ARGENTINA MIGHT PURCHASE SOME OF THE SECURITIES ON THE OPEN MARKET INFLUENCED BOND PRICES PERIODICALLY LAST YEAR 9301140088 930114 INTERNATIONAL INDONESIA'S SUHARTO TO RUN UNOPPOSED FOR SIXTH TERM JAKARTA INDONESIAN PRESIDENT SUHARTO WILL RUN UNOPPOSED FOR REELECTION TO A SIXTH FIVEYEAR TERM IN MARCH FOLLOWING A FAILED EFFORT BY THE SON OF THE LATE PRESIDENT SUKARNO TO GET A PARTY NOMINATION THE INDONESIAN DEMOCRATIC PARTY OR PDI ANNOUNCED ITS ENDORSEMENT OF THE 71YEAROLD MR SUHARTO THE OTHER TWO POLITICAL PARTIES ALLOWED TO OPERATE IN THE COUNTRY HAD ALREADY ENDORSED HIM GURUH SUKARNOPUTERA THE 40YEAROLD SON OF THE COUNTRY'S FIRST PRESIDENT ANNOUNCED LAST WEEK THAT HE WOULD SEEK THE PDI'S ENDORSEMENT SAYING THE TIME HAD COME FOR INDONESIANS TO HAVE A CHOICE FOR PRESIDENT MR GURUH ISN'T A SENIOR PDI MEMBER HE DIDN'T QUALIFY TO ATTEND THE NATIONAL PARTY CONFERENCE HELD THIS WEEK OUTSIDE JAKARTA BUT HE PROVED HIMSELF TO BE A POTENT VOTEGETTER FOR THE PARTY IN PARLIAMENTARY ELECTIONS LAST JUNE WHEN HE WON A SEAT IN THE HOUSE OF REPRESENTATIVES LIKE HIS FAMOUS FATHER MR GURUH IS A CHARISMATIC ORATOR BUT HE HAS LIMITED EXPERIENCE IN POLITICS HIS MAIN WORK HAS BEEN AS A CHOREOGRAPHER THE PDI IS THE CLOSEST THING TO AN OPPOSITION PARTY IN INDONESIA'S REGULATED POLITICAL SYSTEM LIKE THE OTHER PARTIES IT MUST SUBSCRIBE TO THE STATE IDEOLOGY BUT IT CARRIES AN IMAGE OF FAVORING MORE DEMOCRACY THAN GOLKAR MR SUHARTO'S DOMINANT PARTY 9301140087 930114 BUSINESS BRIEF PIONEER STANDARD ELECTRONICS INC PROFIT MORE THAN DOUBLED FOR FIRM'S FISCAL 3RD PERIOD PIONEER STANDARD ELECTRONICS INC CITING INCREASED DEMAND FOR ELECTRONIC GOODS AND GAINS IN MARKET SHARE SAID NET INCOME MORE THAN DOUBLED TO 33 MILLION OR 50 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED DEC 31 IN THE YEARAGO PERIOD THE CLEVELANDBASED ELECTRONIC PARTS AND COMPUTER GOODS DISTRIBUTOR EARNED 12 MILLION OR 23 CENTS A SHARE SALES FOR THE PERIOD ROSE 17 TO 1097 MILLION FROM 934 MILLION THE LATEST PERIOD'S RESULTS INCLUDED AN EQUITY CONTRIBUTION OF ABOUT 2 MILLION FROM PIONEER'S 50OWNED AFFILIATE PIONEER/TECHNOLOGIES GROUP INC THAT CONTRIBUTION IS UP 127000 FROM A YEAR EARLIER PIONEER/TECHNOLOGIES WHICH IS 50OWNED BY MEMBERS OF ITS OWN MANAGEMENT DISTRIBUTES TO THE SOUTHEAST AND PARTS OF CALIFORNIA PIONEER SAID ITS CALENDAR 1992 SALES COMBINED WITH THOSE OF PIONEER/TECHNOLOGY WERE 66 OF THE 1018 BILLION NORTH AMERICAN INDUSTRIAL ELECTRONICS DISTRIBUTION MARKET THAT SHARE IS UP FROM 58 IN 1991 AND 55 IN 1990 THE COMPANY SAID PIONEER STANDARD ELECTRONICS INC'S 50OWNED AFFILIATE PIONEER/TECHNOLOGIES GROUP INC CONTRIBUTED 658000 IN EQUITY EARNINGS FOR THE THIRD QUARTER ENDED DEC 31 UP FROM 94000 A YEAR EARLIER FOR THE NINE MONTHS THE AFFILIATE'S EQUITY CONTRIBUTION WAS 2 MILLION UP FROM 127000 A YEAR EARLIER AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE EQUITY CONTRIBUTION FOR THE QUARTER WAS 2 MILLION UP 127000 FROM A YEAR EARLIER 9301140086 930114 RESTRUCTURING OF O&Y FACES STUMBLING BLOCK TAX ISSUE MAY GIVE GROUP LESS CONTROL OF FIRM THAN WAS EXPECTED BY LARRY M GREENBERG TORONTO OLYMPIA & YORK DEVELOPMENTS LTD'S BIG UNSECURED CREDITORS MAY END UP WITH LESS CONTROL OF THE INSOLVENT REAL ESTATE COMPANY THAN EXPECTED BECAUSE OF US TAX CONSIDERATIONS O&Y'S PLAN TO RESTRUCTURE 7 BILLION IN DEBT RELATED TO ITS CANADIAN OPERATIONS IS BEING VOTED ON BY SECURED CREDITORS THIS WEEK BUT THE PLAN HAS RUN INTO DELAYS AMONG THE MAJOR UNSECURED CREDITORS MOST OF WHICH ARE BIG BANKS BECAUSE OF THE TAX PROBLEM AT ISSUE ARE HUNDREDS OF MILLIONS OF DOLLARS IN TAX CREDITS THAT COULD BE LOST IF US TAX AUTHORITIES CONSIDER THAT THE COMPANY ALONG WITH ITS US BUSINESSES HAS CHANGED OWNERS PEOPLE KNOWLEDGEABLE ABOUT THE SITUATION SAID TAX OFFICIALS COULD VIEW THE UNSECURED CREDITORS AS THE NEW OWNERS BY VIRTUE OF THE POWER THEY WILL WIELD IN THE COMPANY UNDER O&Y'S PLAN SECURED CREDITORS ARE EXPECTED TO RECEIVE THE BULK OF THE COMPANY'S ASSETS IN CANADA WHICH HAVE BEEN IN THE CANADIAN EQUIVALENT OF BANKRUPTCYLAW PROTECTION SINCE MAY WHATEVER IS LEFT OF THE COMPANY'S EQUITY WOULD REMAIN WITH O&Y'S CURRENT OWNERS THE REICHMANN FAMILY WHICH ALSO WOULD HOLD MOST OF THE BOARD SEATS HOWEVER EFFECTIVE CONTROL OF THE REMAINING O&Y OPERATIONS WOULD GO TO THE COMPANY'S BIG UNSECURED CREDITOR CLASS WHICH WOULD RANK ABOVE THE SHAREHOLDERS IN CLAIMING ANY COMPANY ASSETS INCLUDING THE US OPERATIONS AND WOULD NEED TO APPROVE MANY OF O&Y'S MAJOR BUSINESS DECISIONS O&Y'S PRINCIPAL US SUBSIDIARY OLYMPIA & YORK REALTY CORP HAD 900 MILLION OF NET OPERATING AND OTHER LOSSES IN 1991 THAT COULD BE USED TO OFFSET FUTURE TAX LIABILITIES RELATED TO THE PLANNED SALE OF REAL ESTATE AND THE RESTRUCTURING OF DEBT ACCORDING TO COURT DOCUMENTS FILED BY THE COMPANY IF US TAX OFFICIALS CONSIDERED O&Y INELIGIBLE FOR THESE LARGE TAX CREDITS THE COMPANY ALREADY STRUGGLING TO STAVE OFF ITS CREDITORS MAY BE FORCED TO LIQUIDATE ITS REMAINING CANADIAN ASSETS IF THERE WAS A BELIEF THIS PLAN WOULD RESULT IN A CHANGE OF OWNERSHIP PEOPLE WOULD RATHER TAKE THEIR CHANCES WITH A LIQUIDATION A PERSON FAMILIAR WITH THE NEGOTIATIONS SAID A LIQUIDATION OF O&Y'S CANADIAN ASSETS WOULD MAGNIFY THE CHANCES THAT THE COMPANY WOULD NEED TO FILE FOR CHAPTER 11 BANKRUPTCY LAW PROTECTION IN THE US WHERE O&Y ALSO IS NEGOTIATING TO RESTRUCTURE ITS DEBT TO RESOLVE THE ISSUE O&Y'S UNSECURED CREDITORS ARE BATTLING AMONG THEMSELVES ABOUT HOW MUCH POWER THEY CAN WIELD OVER THE COMPANY AND STILL NOT SET OFF ALARM BELLS AT THE INTERNAL REVENUE SERVICE THE PRINCIPAL DEBATE INVOLVES HOW MUCH POWER THE CREDITORS WILL HAVE TO VETO BOARD DECISIONS SEVERAL PARTICIPANTS IN THE DEBATE BELIEVE THE CREDITORS EVENTUALLY WILL REACH AN AGREEMENT HOWEVER A MEETING FOR THE UNSECURED LENDERS TO VOTE ON THE PLAN WHICH WAS SCHEDULED FOR TOMORROW HAS BEEN PUT OFF UNTIL LATER THIS MONTH THERE'S CLEARLY A TUG OF WAR GOING ON SOME PARTIES COULD BE HURT MORE THAN OTHERS BY THE LOSS OF THE TAX CREDITS ONE CREDITOR SAID CREDITORS SAY CITIBANK IS THE PARTY MAINLY CONCERNED ABOUT THE POSSIBLE LOSS OF TAX CREDITS IN THE US THE CITICORP UNIT WOULD BE AMONG THE FIRST TO BENEFIT FROM ANY CASH GENERATED BY THE US OPERATIONS BECAUSE OF ITS 250 MILLION LOAN TO O&Y REALTY WHICH HOLDS THE US BUSINESSES CITIBANK OFFICIALS DIDN'T RESPOND TO REQUESTS FOR COMMENT ON THE OTHER HAND SOME OF O&Y'S OTHER BIG UNSECURED LENDERS DON'T SHARE CITIBANK'S CONCERN ABOUT THE TAX CREDITS INSTEAD THESE BANKS WOULD PREFER GREATER POWER TO RUN O&Y AND THUS MAINTAIN MORE CONTROL OVER THE COMPANY'S RESTRUCTURING NEGOTIATIONS IN THE US PEOPLE KNOWLEDGEABLE ABOUT THE SITUATION SAID SOME OF THESE BANKS ALTHOUGH THEY HAVE LARGE UNSECURED POSITIONS ALSO HAVE EXTENDED LOANS SECURED BY INDIVIDUAL BUILDINGS IN THE US THESE LOANS ARE DUE TO BE RESTRUCTURED AS PART OF O&Y'S US PLAN O&Y'S OTHER BIG BANKS INCLUDE ROYAL BANK OF CANADA CANADIAN IMPERIAL BANK OF COMMERCE AND HONGKONG & SHANGHAI BANKING CORP ALL OF WHICH HAVE REGULARLY DECLINED TO COMMENT ON O&Y SEPARATELY HOLDERS OF A 115 MILLION BOND ISSUE SECURED BY O&Y'S FIFTH AVENUE PLACE REJECTED THE COMPANY'S RESTRUCTURING PLAN ALLOWING THEM TO TAKE POSSESSION OF THE CALGARY ALBERTA OFFICE PROPERTY THE CREDITOR GROUP SAID IT PLANS TO KEEP O&Y AS MANAGER OF THE BUILDING THE MOVE WHICH HAD BEEN EXPECTED FOLLOWED APPROVALS OF THE O&Y PLAN BY SEVERAL OTHER SECURED CREDITOR GROUPS DESPITE APPROVING THE PLAN THESE CREDITORS STILL HAVE THE RIGHT TO SEIZE AT ANYTIME THE COLLATERAL FOR THEIR LOANS AFTER GIVING 30 DAYS' NOTICE 9301140085 930114 WEDNESDAY'S MARKETS STOCK PRICES ARE MIXED BONDS RISE INVESTORS SHRUG OFF STRIKE AGAINST IRAQ FOCUS ON INTEL PROFIT BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS SHRUGGED OFF THE ALLIED AIR STRIKE AGAINST IRAQ TO FOCUS ON SURPRISINGLY STRONG EARNINGS FROM INTEL ALTHOUGH THE DOW JONES INDUSTRIAL AVERAGE FELL SLIGHTLY THE NASDAQ COMPOSITE INDEX RODE A TECHNOLOGY STOCK RALLY TO A HIGH BOND PRICES ROSE AND THE DOLLAR WAS MIXED THE INDUSTRIAL AVERAGE LOST 108 POINTS TO 326356 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX GAINED 199 TO 43303 THE NASDAQ COMPOSITE SOARED 733 TO 68678 INVESTORS FLOCKED TO SOFTWARE AND SEMICONDUCTOR COMPANIES AFTER INTEL REPORTED ITS STRONGERTHANEXPECTED FOURTHQUARTER PROFIT INTEL LEAD THE RALLY GAINING 8 1/8 OR 8 TO 110 ADOBE SYSTEMS GAINED 7 1/4 OR 22 TO 40 1/4 AND MICROSOFT ROSE 1 1/2 OR 17 TO 91 1/4 ALL IN OVERTHECOUNTER TRADING THE RALLY IN OVERTHECOUNTER STOCKS COULD HELP CARRY THE ENTIRE MARKET TO HIGHER LEVELS SAID DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY WE COULD SEE REVERBERATIONS OVER THE NEXT FEW DAYS AND A REJUVENATION OF A MORE BULLISH SCENARIO HE SAID WE'VE BEEN SO BEATEN DOWN RECENTLY THAT THE MARKET'S RECEPTIVE TO A POSITIVE CATALYST THE REACTION IN FINANCIAL MARKETS TO THE ALLIED RAID ON IRAQ WAS BRIEF THE INDUSTRIAL AVERAGE WHICH HAD SLUMPED 20 POINTS EARLY IN THE SESSION AS CAUTIOUS INVESTORS WORRIED ABOUT THE HEIGHTENED TENSIONS IN THE MIDDLE EAST REBOUNDED MODESTLY ON NEWS OF THE ATTACK WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK MARKET INDEX LOST 005 TO 9111 THE DOLLAR INITIALLY INCHED UP A BIT ON REPORTS OF THE RAID IN IRAQ BUT QUICKLY FELL BACK TRADERS SAID THAT WASHINGTON'S FRUSTRATION WITH IRAQ AND THE POSSIBILITY OF ALLIED MILITARY ACTION HAD BEEN TELEGRAPHED FOR SO LONG THAT THE ACTUAL BOMBINGS WERE NO SURPRISE IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 245 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1075 ISSUES ROSE AND 743 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED A HALFPOINT OR 5 FOR EACH 1000 FACE AMOUNT TO YIELD 743 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16234 MARKS AND 12565 YEN COMPARED WITH 16307 MARKS AND 12520 YEN TUESDAY 9301140084 930114 PACIFIC TELESIS UNIT TO BUY DIGITAL PHONES FROM OKI TELECOM WALNUT CREEK CALIF PACIFIC TELESIS GROUP INC'S CELLULAR TELEPHONE UNIT HAS AGREED TO BUY MORE THAN 30000 PORTABLE DIGITAL PHONES STARTING NEXT YEAR FROM OKI TELECOM A UNIT OF JAPAN'S OKI ELECTRIC INDUSTRY LTD THE PHONES WILL USE CODE DIVISION MULTIPLE ACCESS DIGITAL TRANSMISSION WHICH RIVALS TIME DIVISION MULTIPLE ACCESS THE DIGITAL CELLULAR TECHNOLOGY ADOPTED BY MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL CORP FOR THEIR CELLULAR SYSTEMS AFTER THOROUGH EVALUATION OF BOTH DIGITAL OPTIONS WE ARE CONVINCED THAT CDMA IS THE WINNER FOR THE LONG HAUL SAID SUE SWENSON PRESIDENT AND CHIEF OPERATING OFFICER OF PACTEL CELLULAR CDMA BREAKS UP A CONVERSATION INTO SMALL BITS LABELS EACH WITH A UNIQUE CODE AND SPREADS A MESSAGE THROUGHOUT AN ENTIRE SPECTRUM BAND MANY CONVERSATIONS ARE TRANSMITTED SIMULTANEOUSLY USING THE SAME BAND THE BITS OF CONVERSATIONS ARE THEN SORTED BY CODE REASSEMBLED IN ORDER AND DELIVERED TO THE RECEIVER WITH TDMA MESSAGES ARE TRANSMITTED IN DIFFERENT TIME SLOTS IN SHORT BURSTS CDMA EQUIPMENT WON'T BE COMMERCIALLY AVAILABLE FOR SEVERAL MONTHS BECAUSE STANDARDS ARE STILL BEING DEVELOPED TDMA GEAR IS AVAILABLE AND MCCAW AND SOUTHWESTERN BELL EXPECT TO BEGIN OPERATING TDMA SYSTEMS THIS YEAR THE OKI PORTABLE PHONES WILL BE DUALMODE SO USERS CAN MAKE CALLS USING CDMA DIGITAL CELLULAR NETWORKS OR TODAY'S ANALOG NETWORKS THE COMPANIES SAID THAT PROTOTYPES SHOULD BE COMPLETED BY MIDYEAR AND PACTEL WILL BEGIN TESTING NEXT FALL 9301140083 930114 FINANCING BUSINESS SOFTWARE DEVELOPER'S CO SOFTWARE DEVELOPER'S CO HINGHAM MASS SAID IT COMPLETED A PRIVATE PLACEMENT OF 537898 SHARES OF ITS COMMON STOCK AT 190 A SHARE NET PROCEEDS FROM THE SALE WERE ABOUT 1 MILLION THE COMPANY SAID IT USED 500100 OF THE PROCEEDS TO REDEEM 5001 SHARES OF SERIES B SENIOR PREFERRED STOCK AS A RESULT THE COMPANY RETIRED A WARRANT FOR 250000 SHARES OF COMMON STOCK HELD BY THE SERIES B SHAREHOLDERS THE BALANCE OF THE PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES WHICH MAY INCLUDE REDEMPTION OF THE REMAINING 4999 SHARES OF SERIES B SENIOR PREFERRED STOCK 9301140082 930114 A MODERATE HAWK AND UKRAINIANS ASSESS ARMS TALKS BY ROBERT L BARTLEY LIKE OTHER RECENT PRESIDENTS GEORGE BUSH HAS MADE A BID FOR HISTORY WITH A NEW STRATEGIC ARMS AGREEMENT WITH THE SOVIET UNION GONE HE STRUCK A DEAL WITH RUSSIA THE TREATY MAY FOUNDER ON A MINOR DETAIL UKRAINE BUT IT DID PUSH THE IRANCONTRA PARDONS OFF THE FRONT PAGES COMMUNISM MAY BE OVER BUT IT LOOKS AS IF THE STRATEGIC WEAPONS DEBATE WILL GO ON FOREVER BENEATH ITS INCOMPREHENSIBLE GLOBS OF INITIALS AND ABSTRUSE THEOLOGY LURKS A MORE UNDERSTANDABLE HUMAN SIDE WHO BETTER TO RECOUNT IT THAN EDWARD L ROWNY SOMETIME AMBASSADOR AND RETIRED LIEUTENANT GENERAL WITH NEARLY TWO DECADES ON THE INSIDE AS ONE WHO STARTED COVERING STRATGEGIC ARMS WITH THE GREAT ABM DEBATE OF 1969 I'M SCARCELY SURPRISED THAT ED ROWNY'S NEW BOOK IS NOT ONLY ENGAGING BUT REVEALING TAKE FOR EXAMPLE THE STORY BEHIND THE BOOK'S CURIOUS TITLE IT TAKES ONE TO TANGO BRASSEY'S/MACMILLAN 22 NEGOTIATOR ROWNY ONCE URGED A SOVIET COUNTERPART TO BE MORE FORTHCOMING SINCE IT TAKES TWO TO TANGO THE RUSSIAN REPLIED THAT IN HIS VILLAGE YOUNG BOYS WOULD DANCE WITH CHAIRS UNTIL A GIRL INDICATED INTEREST THIS IS THE RUSSIAN NEGOTIATING TACTIC WITH AMERICANS HE EXPLAINED AND SEEMS TO WORK PRETTY WELL CLEARLY AMERICANS ARE ANXIOUS SUITORS WHEN THE ARMY SENT YOUNG ROWNY FOR GRADUATE WORK AT YALE JUST AFTER WORLD WAR II HE STUDIED RUSSIA'S LANGUAGE AND HISTORY AND PARTICULARLY ITS NEGOTIATING BEHAVIOR CONTEMPLATING FUTURE DEALINGS HE DREW UP A LIST OF 10 DOS AND DON'TS IT STARTED WITH ABOVE ALL REMEMBER THE OBJECTIVE AND BE PATIENT AND IT ENDED WITH BEWARE AGREEMENTS IN PRINCIPLE AND BEWARE OF NEGOTIATING AT THE ELEVENTH HOUR HIS CAREER CONSISTED OF WATCHING AMERICANS VIOLATE THESE MAXIMS RICHARD NIXON AND ESPECIALLY HENRY KISSINGER POUNDED THE BUREAUCRACY TO GET A DEAL NEGOTIATING AWAY THE ABM AND MISSILE DEFENSE GENERALLY CYRUS VANCE OFFERED TO LET THE RUSSIANS CHOOSE BETWEEN THE AMERICAN POSITION AND THE AMERICAN FALLBACK POSITION THEY BLASTED BOTH AMY CARTER BECAME A STRATEGIC EXPERT WHEN HER FATHER ASKED GEN ROWNY TO BRIEF HER IN FACT HE ASKED WHETHER SHE'D RATHER GO WATCH TELEVISION RONALD REAGAN BY CONTRAST WAS LOOKING FROM THE FIRST FOR A CHANCE TO GIVE HIS SPEECH ADVOCATING A STAR WARS MISSILE DEFENSE THE ROWNY ASSESSMENT IS SURPRISINGLY COMPLIMENTARY TO GERALD FORD AND SURPRISINGLY HARSH ON GEORGE BUSH'S LACK OF LEADERSHIP STILL IN THE END ED ROWNY BELIEVES THAT IF YOU FOLLOW HIS 10 RULES YOU CAN GET A DEAL WITH THE RUSSIANS IN AN INTERVIEW FOR EXAMPLE HE SUPPORTS THE LATEST TREATY AS HAVING MORE BENEFITS THAN DRAWBACKS THE BIG ADVANTAGE IS THAT THE RUSSIANS HAVE AGREED TO GIVE UP THEIR MONSTER SS18 MISSILE AND TO RESTRICT OTHER MISSILES TO SINGLE WARHEADS THIS MEANS THEY WILL LOSE THEIR FIRSTSTRIKE CAPABILITY THE ABILITY TO KNOCK OUT US LANDBASED MISSILES AND KEY MILITARY FACILITIES AND THE TREATY ALLOWS THE US TO KEEP ITS SUBMARINEBASED MISSILE FORCE BUT THE TREATY WAS STRUCK AT THE 11TH HOUR TO BOLSTER PRESIDENT BUSH'S RECORD IN FOREIGN POLICY SO IT HAS DRAWBACKS THE RUSSIANS GET TO KEEP MANY SS18 SILOS MODIFIED TO ACCEPT SMALLER MISSILES SUCH AS THE SS24 BUT YOU CAN'T KNOW FOR SURE WHETHER AN SS24 IS LOADED WITH THE TREATY'S SINGLE WARHEAD OR THE 10 IT CAN POTENTIALLY CARRY SO A POSTYELTSIN REGIME READY TO CHEAT COULD GET FIRSTSTRIKE CAPABILITY RIGHT BACK THEN THERE'S THE MINOR DETAIL SOME OF THE STRATEGIC WEAPONS THE TREATY IS SUPPOSED TO COVER ARE IN UKRAINE AND ALSO KAZAKHSTAN AND BELARUS IN SOMETHING CALLED THE LISBON PROTOCOL THESE REPUBLICS AGREED TO CEDE NUCLEAR MONOPOLY TO RUSSIA BUT BY NOW UKRAINE IS WONDERING WHAT REALLY HAPPENED TO THE TACTICAL NUCLEAR WEAPONS IT SHIPPED TO RUSSIA FOR DESTRUCTION AND IS DISCOVERING SOME CONDITIONS FOR GIVING UP ITS STRATEGIC NUCLEAR WEAPONS FOR ONE THING IT WANTS A SECURITY GUARANTEE AGAINST A RUSSIAN INVASION ALSO LOTS OF MONEY SO SOME PEACESEEKERS NOW WANT TO BEAT UP ON THE UKRAINIANS BUT MR ROWNY SUGGESTS WE SHOULD BE FORTHCOMING ON THE MONEY AND LEAN ON THE RUSSIANS TO OFFER SECURITY GUARANTEES TO THE OTHER REPUBLICS NOW ED ROWNY HAS OFTEN BEEN DEPICTED AS A HAWK WHEN THE CARTER TEAM CONCLUDED SALT II HE EXCUSED HIMSELF FROM THE CHAMPAGNE TOASTS TO CABLE IN HIS RESIGNATION YET IN FACT HE'S A MODERATE OTHERS OF US HAVE CONCLUDED THAT THERE'S SOMETHING FUNDAMENTALLY LUDICROUS ABOUT THE WHOLE NOTION OF ARMS AGREEMENTS WITH COMMITTED ADVERSARIES THE HARDEST HAWKS EVEN ARGUE THAT IF RUSSIA TURNS MENACING AGAIN AN ARMS AGREEMENT WOULDN'T PROTECT US NATIONAL SECURITY AS MUCH AS A NUCLEARARMED UKRAINE ED ROWNY DEPICTS THIS ARGUMENT AS A LITTLE RICH FOR ME IN ANY EVENT THE UKRAINIANS ARE UNLIKELY TO FIND IT IN THEIR INTEREST TO GIVE UP A DETERRENT AGAINST THE RUSSIANS SO MOST LIKELY THE WHOLE TREATY WILL SIT AS A DEAD LETTER FOR THE WORST OUTCOME PONDER THE RECENT RUSSIAN SALE OF SUBMARINES TO IRAN DESPERATE FOR MONEY NATIONALLY AND SUBJECT TO BRIBES INDIVIDUALLY RUSSIANS AND UKRAINIANS MAY START TO PEDDLE THEIR NUCLEAR MISSILES AROUND THE WORLD AGAINST THIS POSSIBILITY IT SEEMS TO ME THERE IS ONLY ONE SENSIBLE RESPONSE FOR ALL THESE YEARS WE'VE TRIED TO ACHIEVE NATIONAL SECURITY THROUGH ARMS TREATIES THE MAIN RESULT OF WHICH IS THAT WE STILL DON'T HAVE A DEFENSE THAT COULD STOP A SINGLE MISSILE WE SHOULD FORGET THE NEGOTIATIONS AND BUILD AN ABM AS WE SHOULD HAVE BACK IN 1969 MR BARTLEY IS EDITOR OF THE JOURNAL 9301140081 930114 BUSINESS BRIEF HYDROQUEBEC ELECTRIC UTILITY TO BUY BACK UP TO 8028 MILLION OF DEBT HYDROQUEBEC MONTREAL HOPING TO CAPITALIZE ON CURRENT LOW INTEREST RATES SAID IT PLANS TO BUY BACK AS MUCH AS 8028 MILLION OF ITS DEBENTURES OUTSTANDING THE ELECTRIC UTILITY OWNED BY THE PROVINCIAL GOVERNMENT OF QUEBEC SAID IT WILL FINANCE THE PROPOSED BUYBACK BY ISSUING NEW DEBT SECURITIES IT SAID IT EXPECTS TO REDUCE ITS OVERALL BORROWING COSTS THROUGH THESE TRANSACTIONS THE COMPANY DIDN'T ELABORATE AND OFFICIALS OF THE COMPANY WEREN'T AVAILABLE FOR COMMENT HYDROQUEBEC SAID THE PRICE TO BE OFFERED FOR EACH OF THE FIVE SERIES OF DEBENTURES WILL BE CALCULATED BASED ON FIXED SPREADS OVER THE YIELD ON CERTAIN US TREASURY ISSUES PLUS ACCRUED INTEREST IT SAID THE OFFER IS SET TO EXPIRE JAN 27 MERRILL LYNCH & CO IS THE DEALER MANAGER FOR THE BUYBACK 9301140080 930114 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS FRANCIS H ARNONE FORMER CHIEF EXECUTIVE OF DISCOUNT RETAILER MARSHALLS INC WAS NAMED INDUSTRY DIRECTOR OF THIS COMPUTER MAKER'S RETAIL/WHOLESALE BUSINESS UNIT MR ARNONE WHO LEFT MARSHALL'S IN 1991 AND HAS BEEN A CONSULTANT TO DIGITAL FOR ABOUT A YEAR WILL SUPERVISE THE UNIT'S SALES MARKETING SERVICES AND SYSTEMS INTEGRATION GROUPS HE WILL REPORT TO UNIT VICE PRESIDENT ABBOTT WEISS THE UNIT SELLS COMPUTER SYSTEMS AND OFFERS SERVICES TO RETAILERS AND WHOLESALERS 9301140079 930114 WORLD MARKETS PRICES ON BIG BOURSES FALL ON TENSION OVER IRAQ LOSING STRINGS GET LONGER FOR TOKYO AND LONDON A WALL STREET JOURNAL NEWS ROUNDUP PRICES OF EQUITIES IN TOKYO FELL WEDNESDAY AND THE BENCHMARK AVERAGE SANK TO ITS LOWEST LEVEL SINCE NOV 17 AMID REPORTS THAT US PRESIDENT BUSH HAD DECIDED TO LAUNCH A MILITARY STRIKE AGAINST IRAQ LONDON SHARES DROPPED FOR THE SEVENTH SESSION IN A ROW USIRAQI TENSIONS ALSO SOCKED FRANKFURT STOCKS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 9150 POINTS TUESDAY DROPPED 16314 TO 1651791 MARKING THE SIXTH DECLINE IN THE PAST SEVEN SESSIONS ON THURSDAY THE NIKKEI ROSE 251 POINTS TO CLOSE THE MORNING SESSION AT 1652042 TURNOVER IN WEDNESDAY TRADING CONTINUED TO BE ANEMIC FIRST SECTION VOLUME WAS ESTIMATED AT 190 MILLION SHARES COMPARED WITH 1585 MILLION SHARES A DAY EARLIER DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES 689209 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 195 POINTS TUESDAY LOST 1052 TO 127146 STOCK PRICES SOFTENED FROM THE OPENING LED BY A DECLINE FOR PHARMACEUTICAL ISSUES ON REPORTS THAT JAPAN'S HEALTH MINISTRY WAS URGING RESTRAINT IN THE USE OF THE DRUG INTERFERON BUT WHEN THE IRAQ NEWS EMERGED IN THE EARLY AFTERNOON PARTICIPANTS MOVED TO CLOSE OUT OVERBOUGHT POSITIONS AND THE NIKKEI FELL THROUGH THE 16500 LEVEL AT WHICH MANY PLAYERS HAD EXPECTED STRONG SUPPORT BUYING BY PUBLIC PENSION FUNDS AND INVESTMENT TRUSTS HELPED THE INDEX REGAIN SOME LOST GROUND BUT THE MARKET WASN'T ABLE TO STAGE A CONVINCING REBOUND THE NIKKEI TRADED BETWEEN 1644005 AND 1668897 NOW 16000 IS BEING VIEWED AS THE NIKKEI'S NEW BOTTOM AS THE MARKET HAS BEEN GROWING INCREASINGLY PESSIMISTIC UNLESS THE JAPANESE GOVERNMENT EASES ITS STANCE ON REFUSING TO COMMIT ITSELF TO MORE STIMULATIVE POLICY MEASURES SUCH AS TAX CUTS DEFICIT BONDS OR INTERESTRATE CUTS THE MARKET WAS EXPECTED TO CONTINUE TO BE DEPRESSED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 126 POINTS TO 27453 THE FT 30STOCK INDEX GAVE UP 74 POINTS TO 21296 VOLUME WAS 6528 MILLION SHARES COMPARED WITH 6664 MILLION SHARES A DAY EARLIER THE LOSING STRING GREW LONGER PARTLY FROM RUMORS THAT THE US HAD LAUNCHED AN AIR STRIKE AGAINST IRAQ AND FROM A WEAK START ON WALL STREET AFTER THE MARKET CLOSED A USLED COALITION BOMBED TARGETS IN IRAQ IN RETALIATION FOR WEEKS OF PROVOCATIONS BY THE IRAQI LEADER SADDAM HUSSEIN MOREOVER CONFIDENCE IN LONDON ERODED FURTHER ABOUT WHETHER THE MARKET CAN REBOUND TO RECENT RECORD HIGHS BUT SOME PARTICIPANTS SAID THAT PRICES HAD JUMPED TOO HIGH TOO QUICKLY LEAVING THE MARKET TO CONSOLIDATE FURTHER AND THAT FUNDAMENTALS HADN'T CHANGED SOME INVESTORS SAW FEW REASONS TO GET INVOLVED IN EQUITIES FOR NOW ESPECIALLY WHEN PRICES COULD BE HEADING EVEN LOWER SPECULATION PUT THE 100STOCK INDEX FALLING TO 2700 SOON IN FRANKFURT THE DAX 30STOCK INDEX FELL 1369 POINTS TO 151650 NEAR THE DAY'S LOW OF 151431 AFTER TRADING AS HIGH AS 153146 BUT IN THE LAST HALFHOUR OF THE SESSION THE NEWS OF THE IRAQI SITUATION ROILED THE MARKET AND CAUSED A SELLOFF OF THE DAX STOCKS 28 FELL AND ONLY ONE ROSE FUNDAMENTAL ECONOMIC DATA HAD LITTLE EFFECT ON THE MARKET PARIS SHARE PRICES DROPPED FOR THE THIRD CONSECUTIVE SESSION AS POLITICAL UNCERTAINTIES AND WORRIES ABOUT FRENCH CORPORATE EARNINGS PROMPTED SELLING THE POLITICAL CONCERNS RANGED FROM THE POSSIBILITY OF ANOTHER EUROPEAN CURRENCY CRISIS TO COMING ELECTIONS AND PUBLIC SPENDING CUTBACKS ON THE CONTINENT MILAN EQUITIES ADVANCED IN ACTIVE TRADING WEDNESDAY AS INVESTORS AWAITED NEW MEASURES EXPECTED TOMORROW FROM THE ITALIAN GOVERNMENT TO BUCK UP THE STOCK MARKET MILAN SPIRITS ALSO WERE BUOYED BY A FAVORABLE RECEPTION IN LONDON'S FINANCIAL COMMUNITY TO A PRESENTATION ON ITALIAN PRIVATIZATIONS MILAN'S OPTIMISM NEUTRALIZED DISAPPOINTING DATA ON 1992 THIRDQUARTER GROSS DOMESTIC PRODUCT AND PERCEIVED POLITICAL INSTABILITY MINORITY PARTIES STILL WERE THREATENING A VOTE OF NO CONFIDENCE IN THE GOVERNMENT AMID A CORRUPTION INVESTIGATION MADRID STOCKS ROSE SLIGHTLY AFTER OPENING HIGHER BUT DROPPING SHARPLY ON THE NEWS THAT US OFFICIALS HAD PLANS FOR AN AIR STRIKE ON IRAQ STOCKHOLM PRICES FELL AFTER EARLY GAINS WERE WIPED OUT CHIEFLY BECAUSE OF THE WEAK GLOBAL TREND AND PARTLY BECAUSE OF THE USIRAQI TENSIONS A ZURICH RALLY FIZZLED AND PROFITTAKING LEFT PRICES SLIGHTLY LOWER SYDNEY STOCKS RETREATED ON STOCKINDEX FUTURES ACTIVITY AND THE REPORT OF THE US DECISION ON IRAQ SINGAPORE SHARES ALSO STUMBLED ON NEWS OF A POSSIBLE MILITARY ACTION IN THE PERSIAN GULF HONG KONG SHARES ROSE SHARPLY IN ACTIVE TRADING BUOYED BY BULLISHNESS ON THE TERRITORY'S POLITICAL SITUATION EVEN AFTER PRICES SLID FROM THE DAY'S HIGHS ON THE REPORTS THE US HAD LOST ITS PATIENCE WITH IRAQ SEOUL EQUITIES AFTER TWO DAYS OF LOSSES FINISHED HIGHER ON STRONG PERFORMANCE BY SMALL SHARES MANILA SHARES SPURTED HIGHER ON BARGAINHUNTING AND CORPORATE RUMORS AMONG CORPORATE DEVELOPMENTS IN LONDON DIXONS GROUP SANK 29 PENCE OR 11 TO 225 PENCE 347 THE CONSUMERELECTRONICS RETAILER'S PRETAX PROFIT FOR THE SIX MONTHS ENDED NOV 14 FELL 19 TO 142 MILLION 2191 MILLION FROM A YEAR EARLIER IN ADDITION DIXONS LEFT THE DIVIDEND UNCHANGED AT 16 PENCE A SHARE WHEN THE MARKET HAD EXPECTED IT WOULD BE INCREASED AS MUCH AS 93 THE LATEST EARNINGS WERE HURT BY THE COMPANY'S SILO CHAIN IN THE US WHERE THE OPERATING LOSS WIDENED TO 149 MILLION FROM 109 MILLION IN FRANKFURT SIEMENS FELL 480 MARKS OR 1 TO 573 MARKS 35131 THE ELECTRONICS GIANT WAS EXPECTED TO REPORT TODAY THAT PROFIT FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 FELL BETWEEN 5 AND 10 FROM THE YEAREARLIER 398 MILLION MARKS 244 MILLION STILL AS EXPORTS ARE STAGNATING AND THE WESTERN GERMAN ECONOMY IS EXPECTED TO CONTRACT SIEMENS'S OUTLOOK FOR THE FISCAL YEAR IS CONSIDERED NEUTRAL WITH EARNINGS COMING CLOSE TO THE PREVIOUS YEAR'S 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 9301140078 930114 NO OCTOBER SURPRISE BY STEVEN EMERSON YESTERDAY MARKED THE END OF ONE OF THE MOST APPALLING EPISODES OF CONSPIRACY MONGERING POLITICAL OPPORTUNISM AND MEDIA GULLIBILITY IN RECENT AMERICAN HISTORY REPS LEE HAMILTON D IND AND HENRY HYDE R ILL RELEASED THE RESULTS OF A 11MONTH 13 MILLION HOUSE INVESTIGATION INTO THE SOCALLED OCTOBER SURPRISE CONSPIRACY THEIR CONCLUSION IT NEVER HAPPENED THE MEETINGS AT WHICH REAGAN CAMPAIGN OFFICIALS INCLUDING BILL CASEY AND GEORGE BUSH SUPPOSEDLY PLOTTED THE POSTELECTION RELEASE OF THE AMERICAN HOSTAGES IN IRAN NEVER OCCURRED CRUCIAL SOURCES CITED BY GARY SICK AND OTHER OCTOBER SURPRISE THEORISTS WERE UTTER FABRICATORS WHEN A LIMITED SENATE INVESTIGATION LAST YEAR ARRIVED AT THE SAME CONCLUSION THE NEW YORK TIMES AMONG OTHERS FOUND IT INCONCLUSIVE MR SICK'S EARLY ACCUSATIONS WE SHOULD REMEMBER APPEARED ON THE TIMES'S OPED PAGE A FULLER FAIRER UNDERSTANDING WOULD HAVE TO AWAIT THE HOUSE INQUIRY THE EDITORS WROTE WELL THE WAITING IS OVER BESIDES EXPOSING A HOAX THE HOUSE REPORT OFFERS SEVERAL LESSONS ABOUT THE TRUE NATURE OF CONSPIRACY THEORIES AND ABOUT HOW BEST TO RESPOND NEXT TIME WHEN SPECULATION THREATENS TO OVERWHELM COMMON SENSE WHAT PERSUADED THE MEDIA AND MANY MEMBERS OF CONGRESS TO PUSH FOR AN INVESTIGATION WAS MR SICK'S CONTENTION THAT AT FIRST HE REFUSED TO BELIEVE THE OCTOBER SURPRISE CONSPIRACY ONLY RELUCTANTLY HE CLAIMED AFTER CONDUCTING TWO YEARS OF RESEARCH IN PREPARATION FOR HIS 1991 BOOK DID HE EMBRACE THE CONSPIRACY MY EXPERIENCE WROTE MR SICK IN OCTOBER SURPRISE WAS NOT UNLIKE THAT OF A MEDIEVAL SCHOLAR DISCOVERING TRACES OF HIDDEN TEXT BENEATH THE SCRIPT OF AN OLD PARCHMENT MR SICK HAS ASSERTED MANY TIMES THAT HIS INDEPENDENT RESEARCH CORROBORATED THE ALLEGATIONS OF HIS SOURCES BUT AS THE HOUSE TASK FORCE REPORT MAKES ABUNDANTLY CLEAR THE OCTOBER SURPRISE CONSPIRACY AMOUNTED TO AN ADULT VERSION OF THE CHILDREN'S GAME OF TELEPHONE IN WHICH FABRICATORS EMBELLISHED AND REFINED EACH OTHER'S LIES TOO OFTEN MR SICK AND OTHERS SIMPLY REGURGITATED THE CIRCULAR INTERNALLY CONFIRMED ACCOUNTS OF FABRICATORS ACCORDING TO MR SICK'S OWN ADMISSION TO THE HOUSE TASK FORCE HE INTERVIEWED ONLY FIVE OF THE 14 PRIMARY SOURCES RELYING ON OCTOBER SURPRISE PROPONENTS FOR THE REST LAST YEAR WARREN CHRISTOPHER THE SECRETARY OF STATE DESIGNATE ECHOED MR SICK'S CALL FOR A CONGRESSIONAL INVESTIGATION HE SAID THAT INVESTIGATORS SHOULD LOOK INTO THE HEAVY ARMS TRANSFERS TO IRAN SHORTLY AFTER PRESIDENT REAGAN TOOK OFFICE AND THE LAST MINUTE DELAY IN RELEASING THE 52 AMERICAN HOSTAGES MR CHRISTOPHER SHOULD HAVE KNOWN BETTER AS CHIEF HOSTAGE NEGOTIATOR IN 1980 HE WAS PRIVY TO INTELLIGENCE REPORTS AND INTERCEPTS THAT DISCREDITED THE OCTOBER SURPRISE SCENARIO THE CONGRESSIONAL REPORT STATES THE DOCUMENTARY REVIEW COMBINED WITH THE SWORN TESTIMONY OF KEY REAGAN AND CARTER ADMINISTRATION OFFICIALS CONCLUSIVELY ESTABLISHED THAT THE REAGAN ADMINISTRATION UPHELD THE ARMS EMBARGO WITH IRAN AND ENCOURAGED ITS ALLIES TO DO THE SAME MR CHRISTOPHER SHOULD EXPLAIN WHY HE COMMISSIONED A PAPER ON IRAN AND US FOREIGN POLICY FROM MR SICK FOR THE CLINTON TRANSITION TEAM THE CONSPIRACY SHOULD NEVER HAVE BEEN GIVEN ANY CREDENCE TO BEGIN WITH IT FLOURISHED ONLY BECAUSE JOURNALISTS UNCRITICALLY REPEATED THE LIES OF KNOWN FABRICATORS AND RECKLESSLY INVOKED CONSPIRACY AND COVER UP IN THE ABSENCE OF CORROBORATIVE EVIDENCE SOME PROPONENTS OF THE CONSPIRACY WILL NOW CLAIM THAT ALL THEY WERE DOING WAS RAISING A LEGITIMATE ISSUE FOR CONGRESS TO INVESTIGATE BUT IN FACT OCTOBER SURPRISE ADVOCATES LEVELED SERIOUS CHARGES AGAINST INNOCENT PEOPLE TARRING THEIR REPUTATIONS FOR YEARS TO COME EVEN THOUGH THE CONSPIRACY HAS NOW BEEN DEBUNKED THE ACCUSED WILL NO DOUBT BE DOGGED WITH SUSPICIONS BY CONSPIRACY BELIEVERS WHO WILL CONTINUE TO INVOKE THE ABSENCE OF EVIDENCE AS EVIDENCE OF THE CHARGES MR SICK'S ACCUSATIONS BY THE WAY WERE NOT LIMITED TO HIS BOOK AT A TWENTIETH CENTURY FUND CONFERENCE IN 1991 HE CLAIMED THAT ROBERT MCFARLANE WAS AN ISRAELI INTELLIGENCE AGENT THE CHARGE ALSO MADE BY OCTOBER SURPRISE ADVOCATE CRAIG UNGER IN AN OCTOBER 1991 STORY IN ESQUIRE WAS INSTIGATED BY ARI BENMENASHE THE ISRAELI CONFIDENCE MAN WHO WAS RESPONSIBLE FOR SO MANY OF THE FALSEHOODS IN THE OCTOBER SURPRISE SCENARIO THE HOUSE REPORT CALLS MR BENMENASHE A FABRICATOR ADDING THAT VIRTUALLY EVERYTHING HE TOLD THE TASK FORCE HAS BEEN FALSE THE OCTOBER SURPRISE CONSPIRACY TURNED INTO A FULLFLEDGED COTTAGE INDUSTRY WITH JOURNALISTS SELFPROMOTERS AND IDEOLOGUES RIDING THE CONSPIRACY GRAVY TRAIN PBS SPENT NEARLY 1 MILLION PARTLY TAXPAYER FUNDS ON TWO PROOCTOBER SURPRISE DOCUMENTARIES STIRRING CONTROVERSY AND PROVIDING WORK FOR ITS PRODUCERS AND WRITERS ONE OF THEM ROBERT PARRY IS WRITING YET ANOTHER BOOK PROMOTING THE CONSPIRACY FOR MR BENMENASHE THE OCTOBER SURPRISE HAS MEANT TWO YEARS OF BEING WINED DINED AND FLOWN ALL OVER THE WORLD BY TELEVISION NETWORKS NEWSMAGAZINES AND NEWSPAPERS VARIOUS POLITICAL ORGANIZATIONS SUCH AS THE FUND FOR CONSTITUTIONAL GOVERNMENT HAVE RAISED THOUSANDS OF TAXFREE DOLLARS BY INVOKING THE OCTOBER SURPRISE AT ONE POINT THE FUND ACTUALLY PLANNED TO SET UP AN OCTOBER SURPRISE MUSEUM IN WASHINGTON ONE BIG WINNER APPEARS TO HAVE BEEN MR SICK ACCORDING TO HIS OWN DEPOSITION TO THE HOUSE COMMITTEE HE MADE NEARLY 500000 FROM MOVIE RIGHTS AND BOOK SALES OLIVER NORTH AND OTHERS WERE PROSECUTED FOR LYING TO CONGRESS SEVERAL OF THE OCTOBER SURPRISE SOURCES WHO TESTIFIED UNDER OATH BEFORE THE CONGRESSIONAL TASK FORCE WERE FOUND TO HAVE COMMITTED PERJURY SHOULDN'T THEY ALSO BE PROSECUTED AS FOR MR SICK IT WAS HIS EMBRACE OF THE CONSPIRACY THAT PROMPTED CONGRESS TO AUTHORIZE TWO INVESTIGATIONS ON TOP OF THE HOUSE'S BILL FOR 13 MILLION THE SENATE INVESTIGATION COST 75000 OF TAXPAYER MONEY IN THE MANNER THAT PEOPLE WHO BRING FRIVOLOUS LAWSUITS ARE MADE TO PAY FOR COURT COSTS PERHAPS CONGRESS SHOULD CONSIDER ASKING MR SICK TO FORK OVER HIS EARNINGS IN TESTIMONY BEFORE CONGRESS IN 1991 MR SICK SAID THAT IF THE OCTOBER SURPRISE DID NOT HAPPEN WE OWE IT TO MR WILLIAM CASEY AND OTHERS TO CLEAR ANY SUSPICION FROM THEIR NAME ON A DIFFERENT OCCASION HE SAID HE WOULD APOLOGIZE TO PRESIDENT BUSH IF HIS ALLEGATIONS WERE DISPROVED NOW IS THE TIME FOR SUCH AN APOLOGY MR EMERSON IS WORKING ON A BOOK ON THE CONSPIRACY CULTURE 9301140077 930114 MEDIA NBC EXPECTED TO BID FAREWELL TO LETTERMAN BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONLY ONE CLEAR WINNER HAS EMERGED IN THE PITCHED BIDDING WAR FOR THE SERVICES OF LATENIGHT TALK SHOW HOST DAVID LETTERMAN AND IT IS THE HOST HIMSELF NBC IS WIDELY EXPECTED TODAY TO ANNOUNCE THAT IT WON'T MAKE A COUNTEROFFER TO STOP MR LETTERMAN FROM ACCEPTING AN OFFER FROM CBS TO HOST A NEW LATENIGHT SHOW STARTING IN THE COVETED 1130 PM TIME SLOT THE BID IS VALUED AT ABOUT 14 MILLION A YEAR OVER AT LEAST THREE YEARS BY A PERSON FAMILIAR WITH THE NEGOTIATIONS LATE YESTERDAY THE NETWORK HADN'T EVEN TOLD MR LETTERMAN OF THE DECISION BUT IT WAS ALREADY MAKING PLANS TO HAVE HIS RIVAL TONIGHT SHOW HOST JAY LENO APPEAR WITH NBC EXECUTIVES AT A LATE AFTERNOON PRESS CONFERENCE IN LOS ANGELES TODAY THERE NBC A GENERAL ELECTRIC CO UNIT IS LIKELY TO ANNOUNCE IT WILL STICK WITH MR LENO AT 1130 PM MR LETTERMAN COULD BECOME ONE OF THE HIGHESTPAID TELEVISION ENTERTAINERS UNDER HIS NEW CBS CONTRACT WHICH WOULD BEGIN IN SEPTEMBER BUT DESPITE WEEKS OF HYPE HUNDREDS OF NEWS STORIES AND A MEDIA OBSESSION BORDERING ON LETTERMANIA CBS IS BY NO MEANS ASSURED THAT ITS GAMBLE WILL PAY OFF FOR ALL THE HANDWRINGING AT NBC OVER LOSING MR LETTERMAN HIS RATINGS ARE OFF SIGNIFICANTLY IN THE PAST FIVE YEARS MOREOVER THERE ARE SERIOUS QUESTIONS OF COMPATIBILITY BETWEEN MR LETTERMAN'S YOUNG ADULT AUDIENCE AND CBS'S OLDER PROFILE MANY IN THE INDUSTRY DOUBT WHETHER MR LETTERMAN'S OFFBEAT HUMOR CAN EVEN WORK AN HOUR EARLIER NOR WILL NBC NECESSARILY GAIN IF MR LETTERMAN STUMBLES AT CBS A UNIT OF CBS INC ALTHOUGH NBC HAS MADE WHAT ITS EXECUTIVES CONSIDER A HARDNOSED FINANCIAL DECISION TO STICK WITH JAY LENO THEREBY AVOIDING THE 10 MILLION FEE IT WOULD HAVE PAID MR LENO FOR CANCELING HIM AND THE 50 MILLION PENALTY IT WOULD HAVE PAID TO KEEP MR LETTERMAN IN THE AFTERMIDNIGHT TIME PERIOD ITS 30YEAR DOMINANCE ON THE LATENIGHT TALK FRANCHISE HAS BEEN BROKEN NBC HAD BEEN BANKING ON ITS ABILITY TO CONVINCE MR LETTERMAN TO STAY IN THE LATER TIME PERIOD AND HADN'T ACTIVELY DEVELOPED A REPLACEMENT SHOW NONETHELESS NBC WILL MOVE AGGRESSIVELY TO PROGRAM MR LETTERMAN'S SLOT SOURCES SAID IT IS TURNING THE TIME PERIOD OVER TO SATURDAY NIGHT LIVE CREATOR LORNE MICHAELS AND IT MAY EVEN RUN REPEATS OF MR LETTERMAN'S SHOW OR EVEN OF THE OLD JOHNNY CARSON TONIGHT SHOW UNTIL MR MICHAELS CAN COME UP WITH A NEW PROGRAM BUT THE PREMIUM ADVERTISING RATES THAT NBC HAS BEEN ABLE TO COMMAND FOR THE COMBINED TONIGHT SHOW AND LATE NIGHT PACKAGE WILL DISAPPEAR AND WITH MR LETTERMAN AND MR LENO GOING HEADTOHEAD BOTH ADVERTISING AND NETWORK EXECUTIVES EXPECT ADVERTISING RATES FOR THE LATENIGHT MARKETPLACE TO DROP SHARPLY NBC CURRENTLY SELLS THE TONIGHT SHOW AND LATE NIGHT AS A PACKAGE WITH THE EARLIER SHOW AVERAGING ABOUT 30000 FOR A 30SECOND AD AND THE LATER SHOW BRINGING IN ABOUT 20000 UNTIL RECENTLY ADVERTISERS THAT WANTED TO BUY LATE NIGHT WERE FORCED TO ALSO TAKE SPOTS IN TONIGHT OVERALL NBC HAS EARNINGS ESTIMATED AT 70 MILLION TO 100 MILLION ON THE TWO SHOWS GIVING THE NETWORK A MAJOR PORTION OF THE LATENIGHT MARKET'S ALMOST 400 MILLION IN ANNUAL ADVERTISING REVENUE CBS MAKES ITS CASE FOR HIRING MR LETTERMAN BASED ON HIS PROVEN TRACK RECORD AT NBC CBS HAS BEEN AN ALSORAN IN LATENIGHT FOR YEARS TRYING EVERYTHING FROM A PAT SAJAK TALK SHOW TO ITS CURRENT STEAMYANDCHEAP DRAMAS DUBBED CRIMETIME AFTER PRIMETIME A STRONG AUDIENCE AT 1135 PM MAY ALSO GIVE A BOOST TO THE NETWORK'S CBS THIS MORNING ON THE THEORY THAT VIEWERS LEAVE THEIR SETS TUNED TO THE SAME NETWORK THEY WERE WATCHING WHEN THEY WENT TO SLEEP BUT THE HOUSEHOLD RATINGS FOR MR LETTERMAN'S SHOW ON NBC HAVE STEADILY DROPPED BY A TOTAL OF 25 SINCE THE 198788 SEASON FROM 36 OF US HOMES TO THE CURRENT 27 OR ABOUT THREE MILLION VIEWERS EACH NIGHT IN ADDITION THE LATENIGHT STAR IS STRONGEST AMONG THE ELUSIVE AUDIENCE OF MEN AGES 18 TO 34 WHICH IS WHY IT IS SUCH AN ADVERTISER FAVORITE CBS'S AUDIENCE CONVERSELY IS THE OLDEST OF ALL THE MAJOR NETWORKS AND IT IS LOSING GROUND AMONG YOUNG ADULTS ALMOST HALF OF CBS'S AUDIENCE IS AGE 50 OR OLDER FOR THE FOURTH QUARTER OF 1992 CBS WAS DOWN 11 AMONG MEN 18 TO 34 COMPARED WITH A YEAR EARLIER IT HAS LOST 13 AMONG WOMEN IN THE AGE GROUP WITH A NEW LETTERMAN SHOW CBS WILL HAVE TO DRAW RATINGS OF 3 TO 35 OF HOMES JUST TO BREAK EVEN ON THE SHOW'S 40 MILLION ANNUAL COSTS SEVERAL ANALYSTS ESTIMATED EACH RATINGS POINT ABOVE THAT WOULD MEAN 20 MILLION IN PRETAX PROFIT FOR CBS SAYS WERTHEIM SCHRODER'S DAVID LONDONER CBS NOW GETS A 3 RATING AT 1130 PM BUT IT'S UNLIKELY THE SAME AUDIENCE WOULD STAY ON TO WATCH THE NEW LETTERMAN SHOW CBS INITIALLY COULD HAVE A DIFFICULT TIME WITH THE SHOW BECAUSE IT IS UNLIKELY TO GET 100 OF ITS AFFILIATES TO CARRY THE PROGRAM AT 1130 PM WHERE IT WILL HAVE THE LARGEST AUDIENCE MANY CBS STATIONS HAVE SIGNALED THEIR INTENTION TO REMAIN WITH SYNDICATED PROGRAMS IN WHICH THE STATIONS GET TO KEEP ALL THE AD REVENUE MOREOVER CBS MAY HAVE A DIFFICULT TIME CONVINCING ADVERTISERS OF THE TRUE SIZE OF MR LETTERMAN'S AUDIENCE CURRENTLY THE NBC SHOW GETS ABOUT 23 MORE VIEWERS THAN THE NIELSEN RATINGS INDICATE BECAUSE THEY ARE WATCHING IN PLACES THAT AREN'T MEASURED MOSTLY COLLEGE DORMITORIES WHILE NBC HAS BEEN ABLE TO CONVINCE ADVERTISERS OF THAT FACT AND GETS A PREMIUM FOR THOSE UNCOUNTED VIEWERS CBS WILL HAVE TO PROVE THE NOTION ALL OVER AGAIN INDUSTRY OBSERVERS SAY IT WILL HAVE TO DO SO PARTICULARLY IF AS EXPECTED MR LETTERMAN CHANGES HIS SHOW IN AN EFFORT TO BROADEN THE AUDIENCE WHETHER MR LETTERMAN SUCCEEDS AT 1130 PM DEPENDS ON THE ARCANE SCIENCE OF AUDIENCE FLOW IF HE JUST SPLITS THE AUDIENCE WITH MR LENO AND SYNDICATED TALK SHOW HOST ARSENIO HALL ALL THREE PROGRAMS WOULD BE HURT NOTES TOM WOLZIEN AN ANALYST AT SANFORD C BERNSTEIN & CO TO SUCCEED FOR CBS HE ADDS MR LETTERMAN WILL HAVE TO ATTRACT NEW VIEWERS TO THE TIME PERIOD 9301140076 930114 INTERNATIONAL CHINA'S MURKY MARXISM STUMPS FACTORIES COMPANIES WORK AROUND IDEOLOGICAL DIRECTIVES BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL WUHAN CHINA YOU CAN'T BLAME CHINA'S STATE FACTORY MANAGERS FOR BEING CONFUSED BEIJING OFTEN SALUTES THEM AS KEEPERS OF THE CREED THE SOCIALIST COMMODITY PRODUCERS WHO REMAIN THE BACKBONE OF CHINA'S ECONOMY BUT IT ALSO ASSAILS THEM AS SPENDTHRIFTS WHO MUST GRAB THE MARKET WITH LIBERATED THINKING OR FACE CLOSING DOWN SUCH MIXED MESSAGES REFLECT CHINA'S PROBLEM IN TRYING TO BUILD A MARKET ECONOMY WITHOUT RELINQUISHING COMMUNIST PARTY CONTROL OF ECONOMIC MATTERS BUT WITH 20 OF PUBLIC SPENDING AND AN ESTIMATED 80 OF BANK LOANS NOW GOING TO PROP UP THE UNPROFITABLE STATE SECTOR CHINA'S LEADERS ARE SCRAMBLING TO MAKE STATE ENTERPRISE EFFICIENT AND PROFITABLE FIXING THE PROBLEM IS NO SMALL MATTER SOME 107 MILLION OF CHINA'S 153 MILLION URBAN WORKERS ARE EMPLOYED BY STATE ENTERPRISES OFFICIALLY ONETHIRD OF THESE ENTERPRISES ARE OPERATING IN THE RED BUT ECONOMISTS SAY THE TRUE FIGURE IS TWOTHIRDS OR MORE IF STANDARD ACCOUNTING PROCEDURES ARE APPLIED FOR EXAMPLE STATE FACTORIES BOOK LOANS AS REVENUE SO IF A FACTORY LOSING 8 MILLION GOT A 10 MILLION LOAN ITS BOOKS WOULD SHOW A 2 MILLION PROFIT BUT LINGERING ADHERENCE TO MARXIST IDEOLOGY AND THE FEAR OF GIVING EITHER FOREIGN OR LOCAL ENTREPRENEURS TOO MUCH CLOUT KEEPS BEIJING FROM ENDORSING OUTRIGHT PRIVATIZATION INSTEAD THE CENTRAL GOVERNMENT IS PUSHING A VARIETY OF MARKETIZATION SCHEMES MEANWHILE AT THE LOCAL LEVEL DESPERATE GOVERNMENTS ARE STARTING TO IGNORE BEIJING AND SELL STATE FACTORIES TO FOREIGN INVESTORS THE MOST VISIBLE EXAMPLE OCCURRED IN QUANZHOU IN FUJIAN PROVINCE LAST AUGUST THE CITY SOLD A 60 CONTROLLING INTEREST IN 40 OF THE CITY'S 41 STATE FACTORIES TO A HONG KONG COMPANY CHINA STRATEGIC INVESTMENT LTD BEIJING DIDN'T BALK THROUGHOUT CHINA SIMILAR DEALS ARE QUIETLY BEING PUT TOGETHER THE INDUSTRIAL CITY OF WUHAN IN HUBEI PROVINCE IS NEGOTIATING THE SALE OF 30 STATE FACTORIES TO VARIOUS TAIWAN AND HONG KONG INVESTORS A LOOK AT THE FIRST DEAL IN WUHAN THE SALE OF A BANKRUPT TEXTILEDYEING FACTORY TO AN UNDERFINANCED HONG KONG ENTREPRENEUR SHOWS JUST HOW DESPERATE CASHPOOR LOCAL GOVERNMENTS HAVE BECOME WUHAN A RUNDOWN POLLUTED CITY OF SEVEN MILLION PEOPLE ON THE YANGTZE RIVER HAS AN INDUSTRIAL BASE THAT DATES BACK TO THE TURN OF THE CENTURY WHEN IT WAS CHINA'S NO 2 INDUSTRIAL CENTER TODAY WUHAN IS TRYING TO REBUILD ITSELF BY LEVERAGING ITS ONLY ASSET REAL ESTATE THE CITY'S APPROACH IS TO SELL STATE FACTORIES OUTRIGHT OR RIGHTS TO USE THE LAND THEY OCCUPY TO FOREIGN INVESTORS BUYERS THEN CAN EITHER REVITALIZE THE EXISTING FACTORY OR USE THE PROPERTY TO CREATE NEW JOB OPPORTUNITIES TO DEAL WITH UNEMPLOYMENT CREATED BY THESE TRANSACTIONS WUHAN IS SETTING ASIDE SOME OF THE SALES PROCEEDS TO HELP LAIDOFF WORKERS BECOME ENTREPRENEURS WE HAVE NO MONEY BUT WE DO HAVE LAND AND BUILDINGS SAYS LING SHOUQING CHIEF OF THE WUHAN TEXTILE BUREAU SO WE ARE TRYING TO MAKE THE MOST OF WHAT WE HAVE MR LING'S PROBLEMS BEGAN WHEN NATIONWIDE REFORMS STARTED TAKING ROOT MORE THAN A DECADE AGO MANY OF THE CITY'S 150 TEXTILE FACTORIES BEGAN TO LOSE MONEY WHEN PRICE REFORM IN THE LATE 1970S RAISED THE COST OF SUCH INPUTS AS COTTON ELECTRICITY AND WATER MEANWHILE INFLATION FORCED SUBSTANTIAL SALARY INCREASES AND FOREIGNINVESTED FACTORIES ON THE COAST STOLE LONGSTANDING MARKETS BUT NONE OF THE CENTRAL GOVERNMENT'S MARKETIZATION EFFORTS OFFERED MR LING ANY HOPE NO ONE SHOWED UP TO PARTICIPATE IN THE GOVERNMENT'S SCHEME TO HAVE SUCCESSFUL STATE UNITS PURCHASE SHARES IN FAILING FACTORIES AND THEREBY SOMEHOW ENCOURAGE EFFICIENCY AND NONE OF THE 105 BILLION EARMARKED BY BEIJING TO SPEND BETWEEN 1991 AND 1995 TO UPGRADE STATE INDUSTRY TECHNOLOGY FOUND ITS WAY TO MR LING'S RAMSHACKLE COLLECTION OF TEXTILE FACTORIES THESE PROGRAMS HAVE HELPED SOME OF THE 11500 LARGE STATE ENTERPRISES THAT REPORT DIRECTLY TO BEIJING MINISTRIES BUT FOR THE WUHAN TEXTILE FACTORIES WHICH ARE AMONG 105000 STATE FACTORIES WITH 45 MILLION WORKERS THAT FALL UNDER LOCAL GOVERNMENT JURISDICTIONS BEIJING HAD LITTLE TO OFFER OTHER THAN DIRECTIVES TELLING BUREAUCRATS TO QUIT MEDDLING AND FACTORY MANAGERS TO THINK LIKE CAPITALISTS SO MR LING DID JUST THAT FOR THE PAST THREE YEARS HIS BUREAU'S FACTORIES HAVE LOST THE EQUIVALENT OF 15 MILLION A YEAR MOST OF THEM NOW DEPEND ON STATE BANK LOANS WHICH ARE NOT LIKELY EVER TO BE REPAID TO COVER THE WAGES OF THE CITY'S 115000 TEXTILE WORKERS AND SUPPORT 60000 RETIREES THIS ISN'T THE SITUATION ONLY IN WUHAN THIS IS THE SITUATION FOR THE TEXTILE INDUSTRY THROUGHOUT CHINA SAYS MR LING IN 1991 MR LING MET HONG KONG BUSINESSMAN ALBERT WONG WHO CAME TO TOWN EXPRESSING INTEREST IN THE WUHAN NO 2 PRINTING AND DYEING FACTORY A TEXTBOOK EXAMPLE OF FAILED STATE INDUSTRY IN THE MID1970S NEW EQUIPMENT WAS INSTALLED BUT WORKERS WHOSE GUARANTEED RAISES AND JOB SECURITY PROVIDED LITTLE INCENTIVE FAILED TO MAINTAIN IT BY 1991 THE FACTORY WAS A SHAMBLES WITH ACCUMULATED LOSSES OF 4 MILLION AND 44 MILLION IN UNSALABLE GOODS IN WAREHOUSES MR WONG HAD KNOWHOW AND ACCESS TO OVERSEAS MARKETS BUT LIMITED MONEY TO INVEST THE CITY SAW A CHANCE TO ESTABLISH A MODEL FOR REFORM THAT OTHER FACTORIES COULD FOLLOW SO MR WONG AND WUHAN AFTER MONTHS OF HAGGLING WORKED OUT A DEAL MR WONG PAID 3 MILLION FOR A 51 INTEREST IN WUHAN NO 2'S BUILDINGS AND EQUIPMENT ABOUT 1 MILLION OF MR WONG'S MONEY IS BEING USED IN A FUND FROM WHICH LAIDOFF WORKERS CAN BORROW FOR PRIVATE VENTURES THIS FUND WAS SET UP AFTER WORKERS FEARING FOR THEIR JOBS SURROUNDED MR WONG'S CAR DURING THE NEGOTIATIONS CHANTING DOWN WITH CAPITALISM WHEN MR WONG IN JUNE TOOK OVER THE FACTORY RENAMED CITYFORD DYEING & PRINTING HE BROUGHT IN 17 HONG KONG TECHNICIANS AND KEPT ONLY 774 OF THE PLANT'S 1960 WORKERS THE FACTORY MANAGER IS MR WONG'S WIFE CHEUNG PAN A 28YEAROLD WHO SAUNTERS AROUND THE FACTORY CLAD IN CASHMERE AND CLUTCHING A PORTABLE PHONE WE NEEDED TO CHANGE THE MANAGEMENT AND OPERATIONS SO WE HAD TO GET MAJORITY OWNERSHIP SAYS MS CHEUNG SHE SAYS MONTHLY SALES ARE NOW ABOUT 13 MILLION WITH ABOUT 80 OF PRODUCTION EXPORTED WORKER SALARIES HAVE BEEN DOUBLED TO 70 A MONTH BUT THERE ARE STILL SERIOUS PROBLEMS THE CITY IS BENDING OVER BACKWARD TO KEEP CITYFORD ON TRACK BECAUSE OF HIS LIMITED CAPITAL MR WONG WAS ALLOWED TO MAKE HIS INVESTMENT IN THREE INSTALLMENTS AND HE FAILED TO PAY THE FIRST ONE IN FULL THIS CAME AFTER THE CITY LENT MR WONG 3 MILLION WHEN IT TURNED OUT HE DIDN'T HAVE ENOUGH MONEY FOR OPERATING CAPITAL AND DESPITE WORKER COMPLAINTS AND CHINESE LAWS CALLING FOR AN EIGHTHOUR WORKDAY THE CITY RELUCTANTLY ALLOWED CITYFORD TO REQUIRE ITS EMPLOYEES TO WORK 10HOUR DAYS IN A PART OF THE PLANT THAT WAS RETAINED BY THE BUREAU CITY OFFICIALS DOLE OUT UNEMPLOYMENT MONEY TO LAIDOFF WORKERS THE MONEY COMES FROM THE CITY'S NEW WELFARE AND RETIREMENT FUND TO WHICH CITYFORD AND OTHER BUSINESSES MUST CONTRIBUTE ABOUT 500 OF THE 1186 WORKERS WHO LOST THEIR JOBS ARE STILL UNEMPLOYED BUT OTHERS ARE GETTING LOANS AND STARTING JOINTVENTURE SERVICE BUSINESSES WITH THE VENTURECAPITAL FUND'S MANAGERS THE FUND HAS OPENED A FEW RETAIL OUTLETS AND RESTAURANTS AND FINANCED A COUPLE OF TRANSPORTATION VENTURES 9301140075 930114 AN ARMS TREATY THAT JUST MIGHT WORK BY WILLIAM P KUCEWICZ DISARMAMENT ACCORDS ARE MUCH LIKE MARRIAGE VOWS IDEAL AT THE CEREMONY BUT LATER SUBJECT TO BREACHES A LARGE MAJORITY OF THE WORLD'S GOVERNMENTS ARE ABOUT TO EMBARK ON A UTOPIAN DISARMAMENT VENTURE NO LESS THAN RIDDING THE GLOBE OF CHEMICAL WEAPONS OF MASS DESTRUCTION SURPRISINGLY THE TREATY HAS A FAIR CHANCE OF SUCCESS FOR IT VIEWS PEACE AS A PROCESS NOT JUST A PRINCIPLE REPRESENTATIVES ARE GATHERED IN PARIS TODAY TO SIGN THE CHEMICAL WEAPONS CONVENTION THE UNITED NATIONS GENERAL ASSEMBLY APPROVED THE MEASURE BY CONSENSUS ON NOV 30 EVEN BEFORE THE SIGNING CEREMONY IT IS THE MOSTLY WIDELY SUPPORTED DISARMAMENT ACCORD IN HISTORY WITH 145 SPONSORING COUNTRIES WITHIN 10 YEARS AFTER GOING INTO FORCE THE AIM IS TO ELIMINATE ALL CHEMICAL WEAPONS AND PRODUCTION FACILITIES FROM THE ARSENALS OF SIGNATORY COUNTRIES THAT COULD COME AS SOON AS 2005 THE ULTIMATE GOAL THE TREATY STATES IS FOR THE SAKE OF ALL MANKIND TO EXCLUDE COMPLETELY THE POSSIBILITY OF THE USE OF CHEMICAL WEAPONS THIS AMBITIOUS UNDERTAKING MAY APPEAR UNREALISTIC GIVEN THE POOR RECORD OF ITS PREDECESSOR THE BIOLOGICAL AND TOXIN WEAPONS CONVENTION OF 1972 THAT CONVENTION SIGNED BY MORE THAN 110 NATIONS HAS NOT AVERTED CHARGES OF HOSTILE USE OF SUCH WEAPONS IN RECENT YEARS OR PREVENTED THEIR LABORATORY DEVELOPMENT RUSSIAN PRESIDENT BORIS YELTSIN FOR INSTANCE ADMITTED PUBLICLY LAST YEAR THAT THE FORMER SOVIET UNION HAD NOT FULLY COMPLIED WITH THE BIOLOGICAL WARFARE TREATY AND THAT SUBSEQUENT STEPS WERE BEING TAKEN TO CORRECT MATTERS RUSSIA HAS RELEASED NEW DATA CONFIRMING THAT AN ANTHRAX OUTBREAK IN SVERDLOVSK IN 1979 WHICH TOOK MANY CIVILIAN AND MILITARY LIVES WAS THE DIRECT RESULT OF AN ACCIDENT AT A BIOLOGICAL WEAPONS FACILITY THE BIOLOGICAL WEAPONS CONVENTION SUFFERED FROM THE VERY BEGINNING AND CONTINUES TO SUFFER FROM THE LACK OF A VERIFICATION REGIME BUILT INTO IT AMBASSADOR ADOLF RITTER VON WAGNER OF GERMANY CHAIRMAN OF THE AD HOC COMMITTEE ON CHEMICAL WEAPONS OF THE UN CONFERENCE ON DISARMAMENT SAID BY CONTRAST THE NEW CONVENTION PLACES PRIMARY EMPHASIS ON VERIFICATION AND COMPLIANCE THE MECHANISM IN THE CHEMICAL WEAPONS TREATY TO HELP ENSURE COMPLIANCE IS THE CHALLENGE INSPECTION THIS PROVISION FIRST ADVANCED BY THE REAGAN ADMINISTRATION IN 1984 PERMITS INTERNATIONAL INSPECTION AT ANY TIME ANYWHERE WITHOUT THE RIGHT OF REFUSAL TEAMS OF INTERNATIONAL INSPECTORS WILL BE SELECTED BY THE TREATY'S SUPERVISORY ORGANIZATION WHICH WILL BE A UN AFFILIATE THEY WOULD BE GIVEN ALMOST FREE REIN TO PURSUE SUSPICIOUS ACTIVITIES AND ASCERTAIN COMPLIANCE CHALLENGE INSPECTIONS WOULD BE PROMPTED BY AN ALERT FROM ONE OR MORE PARTIES TO THE TREATY THESE WOULD BE IN ADDITION TO ROUTINE OVERSIGHT AND SPOTCHECKS INSPECTORS MUST BE ALLOWED INTO ANY SITE SUSPECTED OF CONTAINING PROHIBITED MATERIALS OR OPERATIONS SOME SAFEGUARDS WOULD BE PERMITTED IN ORDER TO MAINTAIN NATIONAL SECURITY IN AREAS WHERE NO CHEMICAL WEAPONS ACTIVITIES WOULD BE FEASIBLE SAY IN THE PENTAGON'S ELECTRONIC WAR ROOM THE ACCORD IS NOT PERFECT IT CAN'T GUARANTEE THAT NOT A SINGLE CHEMICAL MUNITION WILL BE LEFT OR THAT A FERTILIZER PLANT CAN'T QUICKLY BE CONVERTED TO WEAPONS MANUFACTURE WHILE THE CHEMICALWEAPONS THREAT CONTINUES IN THE MIDEAST NOTABLY FROM IRAQ NO ARAB STATE HAS JOINED IRAN AND ISRAEL IN AGREEING TO SIGN THE TREATY THE INTRUSIVE INSPECTION REGIME WHICH EVEN ENCROACHES UPON NATIONAL SOVEREIGNTY WAS THE FOCUS OF MUCH ACCLAIM AND NO LITTLE CONTROVERSY IN RECENT INTERVIEWS WITH AMBASSADORS TO THE GENEVABASED 39MEMBER CONFERENCE ON DISARMAMENT RUSSIAN AMBASSADOR SERGEI BATSANOV CALLED THE CHALLENGE INSPECTION CONCEPT REVOLUTIONARY AND UNPRECEDENTED AND TERMED THE RESULT REASONABLE AND WELLBALANCED THE RUSSIANS HOWEVER HAVE RESERVATIONS ABOUT BEARING THE FULL COSTS OF INSPECTIONS AND ABOUT LIMITS ON TRANSFERRING DUALUSE EQUIPMENT TO PEACEFUL PURPOSES ANOTHER QUESTION INVOLVES WHETHER RUSSIA WOULD BE ABLE TO MEET THE DEADLINE ON THE DESTRUCTION OF ITS EXISTING STOCKPILES ESTIMATED AT 40000 AGENT TONS THE RUSSIANS INHERITED AN ENORMOUS PROBLEM FROM THE SOVIETS SAID US AMBASSADOR STEPHEN LEDOGAR THE RUSSIANS TURNED OUT TO HAVE NOT ONLY POLITICAL DIFFICULTIES NOT ONLY ECONOMIC DIFFICULTIES BUT ALSO THESE ENVIRONMENTAL DIFFICULTIES IN TRYING TO ORGANIZE A DESTRUCTION PROGRAM AMBASSADOR LI DAOYU OF CHINA WHICH JOINED THE UN CONSENSUS AND CLAIMS NOT TO POSSESS CHEMICAL WEAPONS SAID THAT THE ACCORD DOESN'T ADEQUATELY REFLECT THE JUST DEMANDS AND REASONABLE PROPOSITIONS OF DEVELOPING COUNTRIES ITS SCOPE OF VERIFICATION OF THE CHEMICAL INDUSTRY IS TOO BROAD AMBASSADOR LI TOLD THE UN IN A NOVEMBER SPEECH AS A RESULT AN EXTREMELY LARGE NUMBER OF CHEMICAL FACILITIES NOT RELEVANT TO CHEMICAL WEAPONS ARE SUBJECT WHERE THERE IS NO NECESSITY AT ALL TO DECLARATION AND VERIFICATION MOREOVER HE SAID THAT THE CONVENTION PLACES UNDUE EMPHASIS ON MAKING CHALLENGE INSPECTIONS EXTREMELY INTRUSIVE AND SHORTNOTICED BUT IGNORES THE DANGER OF ABUSE BY COUNTRIES REQUESTING THAT OTHERS BE SCRUTINIZED THERE ARE TWO CONCERNS JAPAN'S AMBASSADOR YOSHITOMO TANAKA SAID INSPECTION MUST BE AS INTRUSIVE AS POSSIBLE BUT MUST NOT BE ABUSIVE HE CAUTIONED WHETHER IN PRACTICE THIS IDEA CAN BE REALIZED DEPENDS VERY MUCH ON THE VARIOUS DETAILS WHICH ARE STILL TO BE WORKED OUT HE CITED SUCH ITEMS AS INSPECTION MANUALS TECHNICAL DEFINITIONS AND ORGANIZATION OF THE SUPERVISING SECRETARIAT THE KEY TO THE ULTIMATE SUCCESS OR FAILURE OF THE CHEMICAL WEAPONS CONVENTION WILL BE ADHERENCE TO THE PROCESS OF VERIFICATION AND COMPLIANCE IN THE PAST SIGNING DISARMAMENT TREATIES CARRIED FEW IF ANY ENFORCEABLE OBLIGATIONS THIS NEW ACCORD DEMANDS THAT SIGNATORIES PUT THEIR PLEDGES OF DISARMAMENT INTO ACTION IN DEMONSTRABLE AND VERIFIABLE WAYS THE FINAL DETERMINANT WILL BE THE OPENNESS OF THE SIGNATORY COUNTRIES SECRETIVE SOCIETIES AND MALEVOLENT REGIMES CANNOT LONG BE PARTY TO THIS CONVENTION EVEN IF THEY WERE TO SIGN IT INITIALLY ANY ATTEMPT AT BEING CLOSED TO WORLD SCRUTINY IS IN VAIN AND STAYING OUTSIDE THE TREATY IS TANTAMOUNT TO AN ADMISSION OF PEACETHREATENING ACTIVITIES THE SUSPICION THAT SOMEONE IS HIDING SOMETHING IS BROADCAST SHALL THE WOLF LIVE WITH THE LAMB SHALL THE LEOPARD LIE DOWN WITH THE KID PERHAPS NOT BUT ONE THING IS CERTAIN FROM THE CHEMICAL WEAPONS CONVENTION IT WILL BE INFINITELY MORE DIFFICULT FOR A WOLF TO DISGUISE ITSELF IN SHEEP'S CLOTHING MR KUCEWICZ HAS WRITTEN ON CHEMICALBIOLOGICAL WARFARE FOR MORE THAN A DECADE 9301140074 930114 GROUP OPPOSES STOCKOPTION ACCOUNTING PLAN INSTITUTIONAL INVESTOR PANEL TAKES BUSINESSES' SIDE AGAINST CHARGES TO NET BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN INFLUENTIAL GROUP REPRESENTING PENSION FUNDS AND OTHER BIG STOCKHOLDERS SAID IT WILL FIGHT AN ACCOUNTINGRULE PROPOSAL THAT WOULD REQUIRE PUBLIC COMPANIES TO DEDUCT FROM THEIR EARNINGS THE VALUE OF STOCK OPTIONS GRANTED TO EXECUTIVES THE STANCE PUTS THE WASHINGTONBASED COUNCIL OF INSTITUTIONAL INVESTORS IN UNCHARACTERISTIC ALIGNMENT WITH BUSINESSES WHICH HAVE COMPLAINED LOUDLY THAT REPORTING STOCK OPTIONS AS A CHARGE AGAINST EARNINGS WOULD BE MISLEADING AND UNFAIR DESPITE SUCH OPPOSITION THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS IS LEANING TOWARD REQUIRING COMPANIES TO START MAKING SUCH CHARGES AGAINST EARNINGS BUT THE COUNCIL AND OTHER GROUPS COULD PERSUADE THE SECURITIES AND EXCHANGE COMMISSION TO PUSH FOR AN ALTERNATIVE APPROACH THE SEC'S VIEWS WOULD CARRY CONSIDERABLE WEIGHT SINCE IT OVERSEES ACCOUNTING RULES THE COMMISSION'S CHIEF ACCOUNTANT WALTER SCHUETZE DECLINED TO COMMENT YESTERDAY THE COUNCIL LIKE OTHER SHAREHOLDER GROUPS HAS FOUGHT HARD FOR MORE DISCLOSURE OF EXECUTIVE COMPENSATION AND HAS WON ON MANY FRONTS BUT IT DOESN'T BELIEVE A CHARGE AGAINST EARNINGS MAKES SENSE SAID SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OPTIONS AREN'T DOLLARS OUT OF A COMPANY'S COFFERS SHE ARGUED THE GROUP SUGGESTS THAT COMPANIES BE REQUIRED INSTEAD TO ADD A DETAILED NOTE TO EARNINGS SIMILAR TO CURRENTLY REQUIRED DISCUSSIONS OF PENDING LITIGATION THAT WOULD LIST ALL STOCK OPTIONS AND VALUE THEM UNDER A SINGLE METHOD UNDER THE ACCOUNTING RULE AS CURRENTLY CONCEIVED A COMPANY COULD PICK ANY OPTIONVALUATION METHOD IT WANTED THEREBY REDUCING THE ABILITY TO COMPARE COMPENSATION AT VARIOUS COMPANIES THE ACCOUNTING RULE IS EXPECTED TO BE PROPOSED EARLY THIS YEAR THE FACT THAT IT HASN'T YET BEEN FORMALLY INTRODUCED HOWEVER HASN'T STOPPED GROUPS LIKE THE COUNCIL THE BUSINESS ROUNDTABLE AND MANY OTHERS FROM WEIGHING IN MOST IN OPPOSITION TO THE RULE USUALLY WE DEVELOP A PROPOSAL THEN ASK FOR COMMENT ACCOUNTING BOARD CHAIRMAN DENNIS BERESFORD SAID THE NUMBER OF COMMENTS OFFERED BEFORE THE FORMAL PROPOSAL INDICATES THAT THIS IS AN EMOTIONAL ISSUE HE SAID MR BERESFORD SAID THE ACCOUNTING STANDARDS BOARD WILL CONSIDER THE COMMENTS BUT IS PRETTY MUCH COMMITTED TO REQUIRING THE CHARGE AGAINST EARNINGS I DON'T THINK WE'RE WEDDED TO IT UNTIL WE ADOPT A FORMAL STATEMENT HE SAID ENGAGED TO IT MAYBE THE COUNCIL'S POSITION WILL BE TOUGH TO SELL IN CONGRESS LAST YEAR SEN CARL LEVIN D MICH PROPOSED LEGISLATION THAT WOULD REQUIRE COMPANIES TO CHARGE STOCK OPTIONS AGAINST EARNINGS AN AIDE SAID SEN LEVIN INTENDS TO REINTRODUCE THE LEGISLATION IN THIS SESSION WE THINK THE COUNCIL'S POSITION IS MISGUIDED AND CAN'T BE RECONCILED WITH THE FACTS THE AIDE SAID ARGUING THAT STOCK OPTIONS HAVE VALUE AND THEY ARE A COST TO THE COMPANY THAT SHOULD BE COUNTED AGAINST EARNINGS 9301140073 930114 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 STUDENT LOAN MARKETING ASSOCIATION 500 MILLION OF NOTES DUE JAN 21 1998 PRICED TO FLOAT WEEKLY AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY'S THREEMONTH BILL THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTHERN CALIFORNIA EDISON CO 225 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JAN 15 2000 WON IN COMPETITIVE BIDDING BY AN UNDERWRITING GROUP LED BY SALOMON BROTHERS INC THE BONDS WILL BE REOFFERED AS 6 3/4 AT 9975 TO YIELD 6795 THE NONCALLABLE ISSUE WAS PRICED 40 BASIS POINTS ABOVE THE TREASURY'S SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUER IS A UNIT OF SCECORP SOUTHERN CALIFORNIA EDISON CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JAN 15 1997 WON IN COMPETITIVE BIDDING BY AN UNDERWRITING GROUP LED BY MERRILL LYNCH & CO THE BONDS WILL BE REOFFERED AS 590 AT 9982 TO YIELD 595 THE NONCALLABLE ISSUE WAS PRICED 50 BASIS POINTS ABOVE A BLEND OF THE TREASURY'S THREEYEAR AND FIVEYEAR NOTES MERRILL'S BID RESULTED IN A 6023 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P WILLIAMS COAL SEAM GAS ROYALTY TRUST INITIAL OFFERING OF 52 MILLION UNITS AT 20 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO THE TRUST OWNED BY WILLIAMS COS WAS FORMED TO HOLD PROFIT INTERESTS IN DEVELOPED COAL SEAM GAS PROPERTIES IN THE SAN JUAN BASIN OF NEW MEXICO AND COLORADO ITS FILING SAID IT WILL RECEIVE QUARTERLY TAX ALLOCATIONS FROM THE SALE OF GAS FOR 10 YEARS USLIFE CORP 150 MILLION OF NOTES DUE JAN 15 1998 PRICED AS 6 3/4 AT 99789 TO YIELD 68 THE NONCALLABLE NOTES WERE PRICED 85 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO CONSOLIDATED EDISON CO OF NEW YORK 100 MILLION OF DEBENTURES DUE APRIL 1 1998 PRICED AS 6 1/4 AT 9970 TO YIELD 632 THE NONCALLABLE ISSUE WAS PRICED 38 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH CANADIAN PACIFIC FOREST PRODUCTS LTD 75 MILLION OF NOTES DUE JAN 15 2003 PRICED AT PAR TO YIELD 1025 THE NONCALLABLE NOTES WERE PRICED 355 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED BA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS THE ISSUER IS MAJORITYOWNED BY CANADIAN PACIFIC LTD ORIOLE HOMES CORP 70 MILLION OF SENIOR NOTES DUE JAN 15 2003 PRICED AS 12 1/2 AT 97242 TO YIELD 13 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY 2052 MILLION OF ELEVENTH SERIES WATER SYSTEM REVENUE BONDS PRICED BY GOLDMAN SACHS YIELDS RANGE FROM 350 IN 1994 TO 615 IN 2012 THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MARYLAND 130 MILLION OF 1993 FIRST SERIES STATE AND LOCAL FACILITIES LOAN GENERAL OBLIGATION BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5377 YIELDS RANGE FROM 400 IN 1996 TO 580 IN 2008 THE ISSUE HAS BEEN RATED TRIPLEA BY BOTH MOODY'S AND S&P HURON VALLEY MICH SCHOOL DISTRICT 581 MILLION OF 1992 UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS PRICED BY AN AG EDWARDS & SONS INC GROUP YIELDS RANGE FROM 260 IN 1993 TO 665 IN 2020 THE CURRENT INTEREST BONDS WITH A 2020 MATURITY AND ALL CAPITAL APPRECIATION BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE AND RATED TRIPLEA BY BOTH MOODY'S AND S&P THE REST OF THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DAIWA SECURITIES THE OFFERING SERIES 1993G4 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION CLASSES B C AND D FROM FANNIE MAE'S REMIC SERIES 1992G56 FANNIE MAE'S SERIES 1992G56 DEAL WAS BACKED BY STRIPS TRUST 176 WHICH WAS IN TURN COLLATERALIZED WITH GINNIE MAE 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2917 YEARS FEDERAL HOME LOAN BANKS 100 MILLION OF NOTES DUE JAN 26 1996 PRICED AT PAR TO YIELD 503 THE NONCALLABLE NOTES WERE PRICED NINE BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH PROVINCE OF QUEBEC CANADA 500 MILLION CANADIAN DOLLARS OF EUROBONDS DUE FEB 16 2000 WITH A COUPON OF 8 1/2 AND AT AN ISSUE PRICE OF 99675 VIA WOOD GUNDY INC REOFFERED AT 9810 TO YIELD 888 A YIELD MARGIN OF 91 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BONDS FEES 1 7/8 EUROPEAN INVESTMENT BANK SUPRANATIONAL THREE BILLION FRENCH FRANCS OF 8 EUROBONDS DUE FEB 22 2001 AT AN ISSUE AND REOFFERED PRICE OF 9960 VIA CREDIT COMMERCIAL DE FRANCE THE YIELD WAS SET AT 807 ANNUALLY A SPREAD OF 24 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT OAT ISSUE FEES 030 CREDIT FONCIER DE FRANCE FRANCE 15 BILLION MARKS OF 7 1/4 EUROBONDS DUE FEB 24 2003 AT AN ISSUE PRICE OF 102275 VIA DEUTSCHE BANK AG OFFERED INITIALLY AT A FIXED PRICE OF 9960 TO YIELD 20 BASIS POINTS ABOVE GERMAN GOVERNMENT 7 1/8 BOND DUE 2002 FEES THREE REPUBLIC OF AUSTRIA SOVEREIGN 400 MILLION MARKS OF EUROBONDS DUE FEB 17 2003 AT AN ISSUE PRICE OF PAR VIA TRINKHAUS & BURKHARDT THE COUPON WAS SET AT 8 1/4 ANNUALLY FOR THE FIRST TWO YEARS AND SEMIANNUALLY THEREAFTER AT 13 1/8 MINUS THE SIXMONTH LONDON INTERBANK OFFERED RATE FEES 030 PHILIP MORRIS COS US 250 MILLION SWISS FRANCS OF 5 3/8 PUBLICLY LISTED BONDS DUE FEB 10 2000 PRICED AT 10200 VIA UNION BANK OF SWITZERLAND FEES 2 1/8 KOREA ELECTRIC POWER CORP SOUTH KOREA 100 MILLION SWISS FRANCS OF 6 PUBLICLY LISTED BONDS DUE JAN 28 1998 PRICED AT 102 1/4 VIA SWISS BANK CORP FEES 1 5/8 CASSA DI RISPARMIO DELLE PROVINCE LOMBARDE ITALY 200 MILLION OF FLOATING RATE DEPOSITORY RECEIPTS DUE FEB 2 1998 AT AN ISSUE PRICE OF PAR VIA LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 9995 AND THE INTEREST RATE WILL FLOAT AT A MARGIN OF 3/8 POINT ABOVE THE THREEMONTH LIBOR FEES 020 COUNCIL OF EUROPE AGENCY 150 MILLION OF 4 5/8 EUROBONDS DUE FEB 1 1995 AT AN ISSUE PRICE OF 100875 VIA SG WARBURG SECURITIES LTD REOFFERED AT 9990 TO YIELD 468 ANNUALLY A SPREAD OF 18 BASIS POINTS ABOVE THE COMPARABLE TREASURY ISSUE FEES 1 1/8 HAZAMA CORP JAPAN 10 BILLION YEN OF 5 1/2 EUROBONDS DUE MAY 13 1999 AT AN ISSUE PRICE OF 101 5/8 VIA DAIWA EUROPE LTD REOFFERED AT 10010 FEES 1 7/8 9301140072 930114 TOP COURT BACKS ANTIABORTION ACTIVISTS AT CLINICS BUT IMPACT MAY BE LIMITED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SHARPLY DIVIDED SUPREME COURT TOOK AWAY A LEGAL TOOL THAT JUDGES FREQUENTLY HAVE USED TO PROTECT ABORTION CLINICS FROM MILITANT PROTESTS THE 54 DECISION MAY ENCOURAGE ANTIABORTION PROTESTS PLANNED TO COINCIDE WITH THE INAUGURATION OF PRESIDENTELECT CLINTON NEXT WEEK BUT GIVEN MR CLINTON'S SUPPORT FOR ABORTION RIGHTS AND THE PRESSURE BUILDING IN CONGRESS FOR LEGISLATION TO PROTECT WOMEN'S HEALTH FACILITIES FROM DISRUPTIVE PROTESTS THE RULING APPEARS UNLIKELY TO STRENGTHEN THE PROTESTERS' HAND IN THE LONG RUN IN ITS RULING THE COURT SAID THE CIVIL RIGHTS ACT OF 1871 ORIGINALLY AIMED AT PROTECTING FORMER SLAVES DOESN'T PROVIDE ABORTIONCLINIC PATIENTS WITH PROTECTION FROM BLOCKADES AND INTIMIDATION BY ANTIABORTION GROUPS SUCH AS OPERATION RESCUE FEDERAL JUDGES HAVE INVOKED THAT CIVIL RIGHTS LAW KNOWN AS THE KU KLUX KLAN ACT TO PREVENT OR DISPERSE PROTESTS IN A NUMBER OF PLACES INCLUDING WICHITA KAN AND ALEXANDRIA VA OPERATION RESCUE CALLED YESTERDAY'S RULING A TRUMPET SOUND FOR CHRISTIANS TO JOIN THE ORGANIZATION IN THE STREETS DURING JAN 20 TO 23 IN WASHINGTON DALLAS MELBOURNE FLA AND OTHER CITIES AROUND THE COUNTRY FOR CHILDSAVING ACTIVITIES BUT IN FACT THE SIGNIFICANCE OF THE SUPREME COURT'S ACTION COULD BE LIMITED EVEN WITHOUT ANY NEW FEDERAL STATUTE TO PROTECT WOMEN'S HEALTH FACILITIES CURRENT FEDERAL LAW ALLOWS STATES TO SEEK ASSISTANCE FROM THE JUSTICE DEPARTMENT WHEN LOCAL LAWENFORCEMENT AUTHORITIES ARE OVERWHELMED THAT LAW COULD ENABLE MR CLINTON TO ORDER US MARSHALS IN TO HELP LOCAL POLICE PREVENT PROTESTERS FROM BLOCKING CLINICS CLINICS AND THEIR SUPPORTERS ALSO CAN TRY TO PERSUADE STATE COURTS TO PREVENT BLOCKADES BY INVOKING STATE LAWS AGAINST TRESPASSING AND OBSTRUCTION OF ACCESS TO PRIVATE PREMISES ABORTIONRIGHTS ACTIVISTS GENERALLY HAVE SOUGHT HELP FROM FEDERAL COURTS ON THE THEORY THAT THEY ARE FURTHER REMOVED FROM LOCAL POLITICS AND MORE LIKELY TO ACT AGGRESSIVELY AGAINST MILITANT PROTESTERS THOUGH DESPITE THE PROSPECT OF OTHER MEANS OF PROTECTING CLINICS KATE MICHELMAN PRESIDENT OF THE NATIONAL ABORTION RIGHTS ACTION LEAGUE CALLED YESTERDAY'S RULING DEVASTATING A STUNNING SETBACK AND A SAD VIVID REMINDER THAT AMERICA'S BATTLES OVER REPRODUCTIVE FREEDOM ARE FAR FROM OVER THE HIGH COURT DIDN'T ADDRESS THE CONSTITUTIONAL RIGHT TO ABORTION WHICH THE JUSTICES REAFFIRMED IN A LIMITED MANNER IN A MAJOR RULING LAST JUNE WASHINGTONAREA BLOCKADES YESTERDAY'S DECISION INVOLVED EFFORTS TO PREVENT OPERATION RESCUE BLOCKADES IN THE WASHINGTON AREA IN RESPONSE TO A LAWSUIT FILED BY CLINICS AND THEIR SUPPORTERS A FEDERAL JUDGE IN ALEXANDRIA VA AND THE US COURT OF APPEALS FOR THE FOURTH CIRCUIT IN RICHMOND VA SAID THAT WOMEN SEEKING ABORTIONS WERE A CLASS OF PERSONS PROTECTED BY THE 1871 CIVIL RIGHTS LAW THE LAW BARS CONSPIRACIES TO DEPRIVE ANY PERSON OR CLASS OF PERSONS OF THE EQUAL PROTECTION OF THE LAWS THE LOWER COURTS SAID OPERATION RESCUE HAD CONSPIRED TO VIOLATE THE WOMEN'S CONSTITUTIONAL RIGHT TO INTERSTATE TRAVEL THE SUPREME COURT HAS INTERPRETED THE 1871 LAW TO REQUIRE PROOF OF DISCRIMINATION BASED ON RACE OR SOME OTHER CLASSBASED ANIMUS IN ITS OPINION YESTERDAY THE HIGH COURT REJECTED THE ASSERTION THAT WOMEN GENERALLY OR WOMEN SEEKING ABORTIONS CONSTITUTE A TARGETED CLASS WHATEVER ONE THINKS OF ABORTION JUSTICE ANTONIN SCALIA ASSERTED FOR THE MAJORITY IT CANNOT BE DENIED THAT THERE ARE COMMON AND RESPECTABLE REASONS FOR OPPOSING IT OTHER THAN HATRED OF OR CONDESCENSION TOWARD WOMEN AS A CLASS ALTHOUGH THAT CONCLUSION COULD HAVE BEEN SUFFICIENT TO DECIDE THE CASE JUSTICE SCALIA WENT ON TO SAY THAT THE HIGH COURT HAS DEFINED THE RIGHT TO ABORTION AS A PROTECTION ONLY AGAINST STATE INTERFERENCE NOT AGAINST PRIVATE CONSPIRACIES OF THE SORT COVERED BY THE 1871 LAW WHILE THE LAW HAS BEEN APPLIED TO THE RIGHT TO TRAVEL BETWEEN STATES JUSTICE SCALIA ADDED OPERATION RESCUE AIMED ITS ACTIVITIES AT BLOCKING ABORTIONS NOT AT INTERSTATE TRAVEL THE MAJORITY REFUSED TO CONSIDER THE CLINICS' ARGUMENT THAT A PROVISION OF THE 1871 LAW THAT PROTECTS AGAINST CONSPIRACIES TO HINDER LOCAL LAW ENFORCEMENT COULD BE USED AGAINST ANTIABORTION PROTESTERS MUNICIPAL AUTHORITIES HAVE COMPLAINED THAT MASSIVE CLINIC BLOCKADES CAN OVERWHELM CITY POLICE FORCES BUT JUSTICE SCALIA SAID THIS ARGUMENT HADN'T BEEN PROPERLY RAISED IN EARLIER PROCEEDINGS AND THEREFORE SHOULDN'T BE ADDRESSED BY THE HIGH COURT CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES BYRON WHITE ANTHONY KENNEDY AND CLARENCE THOMAS JOINED THE MAJORITY WHICH SENT THE CASE BACK TO THE FOURTH CIRCUIT FOR RECONSIDERATION OF THE CLINICS' CLAIMS ON THE BASIS OF VIRGINIA LAW JUSTICE DAVID SOUTER FILED A PARTIAL DISSENT IN WHICH HE SAID THE LOWER COURT ALSO SHOULD CONSIDER THE CLINICS' FEDERAL CLAIM THAT PROTESTERS HAD CONSPIRED TO HINDER LOCAL LAW ENFORCEMENT JUSTICE JOHN PAUL STEVENS FILED A SEPARATE PASSIONATE DISSENT CALLING ANTIABORTION BLOCKADES THE KIND OF ZEALOUS POLITICALLY MOTIVATED LAWLESS CONDUCT THAT LED TO THE ENACTMENT OF THE KU KLUX KLAN ACT IN 1871 AND GAVE IT ITS NAME JUSTICE HARRY BLACKMUN JOINED THE STEVENS DISSENT AS WELL AS JOINING A SEPARATE ONE FILED BY SANDRA DAY O'CONNOR BRAY VS ALEXANDRIA WOMEN'S HEALTH CLINIC 9301140071 930114 POLITICS & POLICY UNLIKELY ALLIES JOIN TO OPPOSE CLINTON'S CHOICE OF KANTOR AS THE NEW US TRADE REPRESENTATIVE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DAVID ROCKEFELLER A LIVING SYMBOL OF AMERICAN CAPITALISM AND CRAIG MERRILEES A RADICAL CRITIC OF US MULTINATIONALS SHARE FEW BELIEFS BUT THEY BOTH FEAR MICKEY KANTOR ISN'T QUALIFIED TO BE US TRADE REPRESENTATIVE MR ROCKEFELLER THE RETIRED CHAIRMAN OF CHASE MANHATTAN CORP FLEW TO WASHINGTON LAST WEEK TO COMPLAIN ABOUT THE 53YEAROLD LOBBYIST'S INEXPERIENCE AND TO URGE CLINTON TRANSITION CHAIRMAN VERNON JORDAN TO NAME A DEPUTY TRADE NEGOTIATOR WELLVERSED IN TRADE POLICY TRADE IS THE MOST CRITICAL IMMEDIATE ECONOMIC ISSUE THE COUNTRY FACES SAYS MR ROCKEFELLER WE SHOULDN'T BE GOING INTO THE FRAY WITHOUT PEOPLE TRAINED IN THE FIELD TO MR MERRILEES MR KANTOR'S EXPERIENCE IS PRECISELY THE PROBLEM IN 1988 MR KANTOR TRIED UNSUCCESSFULLY TO DEFEAT A REFERENDUM INTENDED TO BLOCK HIS CLIENT OCCIDENTAL PETROLEUM CORP FROM DRILLING FOR OIL NEXT TO A SCENIC LOS ANGELES BEACH USING TACTICS THAT PITTED BLACK AND JEWISH COMMUNITIES AGAINST ONE ANOTHER ACCORDING TO NEWS REPORTS AT THE TIME MR KANTOR TURNED THE ENVIRONMENTAL BATTLE INTO A CLASS AND ETHNIC ONE QUESTIONING WHY LARGELY JEWISH NEIGHBORHOODS SHOULD BE SPARED DRILLING WHEN BLACK AND LATINO COMMUNITIES WEREN'T IT WAS EXTREMELY CRASS AND CYNICAL CONTENDS MR MERRILEES WHO IS A LEADER OF A COALITION THAT OPPOSES THE NORTH AMERICAN FREE TRADE AGREEMENT BECAUSE OF CONCERN IT WILL UNDERMINE US ENVIRONMENTAL LAWS AS SOON AS MR CLINTON TAKES THE OATH OF OFFICE WEDNESDAY HIS ADMINISTRATION WILL BE HIT WITH A SERIES OF TRADE DISPUTES THAT DEMAND FAST ATTENTION WORLD TRADE TALKS ARE DEADLOCKED ENVIRONMENTAL AND WORKER RIGHTS AGREEMENTS WITH MEXICO MUST BE NEGOTIATED AND THE SEMICONDUCTOR STEEL AND AUTO INDUSTRIES ARE PRESSING FOR TRADE PROTECTION BUT CRITICS SAY THAT MR KANTOR WHOSE CONFIRMATION HEARING BEGINS TUESDAY IS POORLY SUITED TO TACKLE TRADE PROBLEMS BECAUSE HE HAS NO EXPERIENCE IN TRADE AND HAS POTENTIAL CONFLICTS OF INTEREST IT ISN'T EVEN CLEAR YET WHO WILL TAKE THE LEAD IN SETTING TRADE POLICY THE TRADITIONAL ROLE OF THE TRADE REPRESENTATIVE COMMERCE SECRETARYDESIGNATE RON BROWN ANOTHER TRADE NOVICE SAYS HIS AGENCY WILL TAKE THE POINT BUT HE HAS POTENTIAL CONFLICTS TOO HE AND HIS LOBBYING FIRM PATTON BOGGS & BLOW HAVE MANY FOREIGN AND DOMESTIC CLIENTS WITH INTERESTS IN TRADE ISSUES HENCE SOME TRADE EXPERTS BET ON THE NEW NATIONAL ECONOMIC COUNCIL TO RUN POLICY YESTERDAY A SENIOR CLINTON TRANSITION OFFICIAL TRIED TO RESOLVE THE QUESTION BY SAYING THAT MR CLINTON EXPECTED TO NAME MR KANTOR THE CHIEF NEGOTIATOR FOR THE TRADE ACCORD WITH MEXICO BUT SKEPTICISM REMAINS THERE'S A DIVISION OF TURF AT EXACTLY THE TIME YOU NEED A SINGLE GENERAL TO RUN TRADE POLICY COMPLAINS GARY HUFBAUER A TRADE SPECIALIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINK TANK MR KANTOR'S SUPPORTERS SAY HE IS A QUICK STUDY WHO WILL MASTER THE INTRICACIES OF TRADE NEGOTIATIONS OTHER TRADE REPRESENTATIVES STARTED WITH LITTLE INTERNATIONAL EXPERIENCE THEY NOTE AND MR KANTOR'S LONG FRIENDSHIP WITH THE PRESIDENTELECT AND MRS CLINTON SHOULD HELP HIM PREVAIL IN TURF WARS AT HOME AND TRADE TALKS ABROAD WHEN HE NAMED MR KANTOR TO THE TRADE SLOT MR CLINTON PRAISED THE LOBBYIST'S POLITICAL SAVVY AND SAID HE HAS HIS ABSOLUTE CONFIDENCE SAMUEL BERGER MR CLINTON'S DESIGNATED DEPUTY NATIONAL SECURITY ADVISER SAYS IN TRADE NEGOTIATIONS THE MOST IMPORTANT THING TO BRING TO THE TABLE IS KNOWLEDGE BY THE OTHER SIDE THAT YOU HAVE A DIRECT RELATIONSHIP WITH THE PRESIDENT MR KANTOR SHOULD DO FINE ADDS CHARLES LEVY A VETERAN TRADE LAWYER FOR THE COMPUTER INDUSTRY BECAUSE HE IS SMART AND POLITICAL BUT MR KANTOR A SENIOR PARTNER AT THE LOBBYING FIRM OF MANATT PHELPS PHILLIPS & KANTOR ALREADY HAS RUN INTO FLAK OVER THE APPEARANCE THAT HIS FIRM WILL BE CASHING IN ON THE ELECTION HE LOST HIS BID TO BECOME CLINTON TRANSITION CHIEF AFTER IT WAS REVEALED THAT HE GAVE A PREELECTION BRIEFING ON THE CLINTON CAMPAIGN ORGANIZED BY FORMER DEMOCRATIC PARTY CHIEF CHARLES MANATT FOR CURRENT AND POTENTIAL CLIENTS AT MANATT PHELPS NOW THE 53YEAROLD LOBBYIST MAY FIND THAT HIS FIRM'S ACTIVITIES REQUIRE HIM TO DISQUALIFY HIMSELF FROM AT LEAST TWO MAJOR TRADE ISSUES WHETHER TO PRESS JAPAN TO EXTEND AN AGREEMENT COMMITTING THAT COUNTRY TO BUY 20 OF ITS SEMICONDUCTORS FROM ABROAD AND WHETHER TO PUT 25 TARIFFS ON JAPANESE MINIVANS AS DETROIT WANTS MR KANTOR HAS DECLINED REQUESTS TO ANSWER QUESTIONS ABOUT HIS FIRM'S LOBBYING AND HIS VIEWS ON TRADE MANATT PHELPS IS A REGISTERED LOBBYIST FOR NEC CORP ONE OF JAPAN'S LARGEST SEMICONDUCTOR MAKERS ROBERT KABEL A PARTNER IN MANATT PHELPS'S WASHINGTON OFFICE SAYS HIS FIRM ADVISES NEC ON US SEMICONDUCTOR POLICY MR KANTOR WHO WORKS OUT OF MANATT PHELPS'S LOS ANGELES HEADQUARTERS DOESN'T WORK ON THE NEC ACCOUNT MR KABEL SAYS BUT AS A PARTNER MR KANTOR'S SALARY AND BONUS ARE TIED TO THE REVENUE DERIVED FROM NEC AND OTHER CLIENTS I'M SURE MR KANTOR WILL TAKE A RECUSAL ON ISSUES AFFECTING NEC SAYS MR KABEL ALSO IN 1988 AND 1989 MR KANTOR PERSONALLY LOBBIED FOR JAPAN'S SUZUKI MOTOR CO WHOSE US SUBSIDIARY WAS FACING PRESSURE FROM CALIFORNIA AND OTHER STATES TO RECALL THE SUZUKI SAMURAI CONSUMER REPORTS MAGAZINE SAID THE VEHICLE IS SO LIKELY TO ROLL OVER THAT IT IS UNFIT FOR ITS INTENDED USE LYNNE DOLL A SPOKESWOMAN FOR SUZUKI SAID MR KANTOR HELPED PERSUADE SEVEN STATES TO END THEIR INVESTIGATIONS IN EXCHANGE FOR SUZUKI'S PLEDGE TO INCLUDE SAFETY WARNINGS IN SAMURAI ADS DURING THE SAME TIME SUZUKI WAS PRESSING THE US CUSTOMS SERVICE TO CLASSIFY THE SAMURAI AND ITS OTHER JEEPLIKE VEHICLES AS TRUCKS SO SUZUKI WHOSE CAR EXPORTS WERE LIMITED BY JAPANESE QUOTAS COULD BOOST SHIPMENTS TO THE US THAT SPARKED A MAJOR LOBBYING EFFORT BY OTHER JAPANESE CAR MAKERS WHICH HAD LARGE AUTO EXPORT QUOTAS TO GET CUSTOMS TO CLASSIFY THEIR MINIVANS AS PASSENGER CARS BECAUSE CAR IMPORTS ARE TAXED AT 25 ONETENTH THE TARIFF ON TRUCKS SUZUKI AND THE OTHER JAPANESE COMPANIES GOT THE NEW CLASSIFICATIONS THEY SOUGHT IN 1989 AND NOW US AUTO MAKERS ARE TRYING TO PERSUADE THE CLINTON ADMINISTRATION TO REVERSE THAT VICTORY AND PUT A 25 TAX ON ALL JAPANESE MINIVANS MR KANTOR AND HIS FIRM DIDN'T LOBBY FOR SUZUKI ON THE CUSTOMS ISSUE BUT PAT CHOATE AUTHOR OF A BOOK ON JAPANESE INFLUENCE PEDDLING IN WASHINGTON SAYS MR KANTOR SHOULD DISQUALIFY HIMSELF FROM THE MATTER ANYWAY MR KANTOR'S FORMER CLIENT BROUGHT UP THE ISSUE WAS THE PRINCIPAL ADVOCATE AND ORGANIZED THE JAPANESE RESPONSE SAYS MR CHOATE OTHER LOBBYING EFFORTS BY MR KANTOR HAVE WON HIM NOTORIETY IN ENVIRONMENTAL CIRCLES PARTICULARLY THE OILDRILLING CAMPAIGN AND A TOBACCO INDUSTRYFUNDED PUSH TO REPEAL A SMOKING BAN IN BEVERLY HILLS CALIF RESTAURANTS MANATT PHELPS ALSO REPRESENTS CIGARETTE MAKER PHILIP MORRIS COS WHICH US TRADE NEGOTIATORS HAVE AIDED BY OPENING ASIAN MARKETS TO US TOBACCO EXPORTS ROGER DIAMOND A LOS ANGELES ENVIRONMENTAL ATTORNEY WHO OPPOSED MR KANTOR ON THE CIGARETTE AND OIL CAMPAIGNS CALLS HIM AN ABLE ADVOCATE BUT MR MERRILEES CHIDES THE QUESTIONABLE ETHICS OF MR KANTOR'S WORK FOR DAVID ROCKEFELLER THOUGH THE BIG PROBLEM WITH MR KANTOR IS INEXPERIENCE HE SAYS HE URGED THE CLINTON ADMINISTRATION TO NAME FRED BERGSTEN A TRADE EXPERT AND DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS AS MR KANTOR'S DEPUTY OTHERWISE HE FEARS WORLD TRADE TALKS IN GENEVA AND NEGOTIATIONS WITH MEXICO WILL LANGUISH AS THE NEW ADMINISTRATION GEARS UP FAILURE OF EITHER NEGOTIATIONS WOULD MEAN TROUBLE FOR THE COUNTRY AND THE WORLD ECONOMY HE WARNS 9301140070 930114 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SHARP'S WIZARD ORGANIZERS THOSE SPECIALIZED LITTLE POCKET COMPUTERS THAT MAINLY STORE APPOINTMENTS AND ADDRESSES HAVE ALWAYS SEEMED TO ME TO BE GADGETS THAT EXIST MORE TO SHOW OFF TECHNOLOGY THAN TO MEET REAL NEEDS IN A PRACTICAL WAY TRUE SHARP THE BIG JAPANESE OUTFIT THAT MAKES EVERYTHING FROM VACUUM CLEANERS TO PCS SHOWED IT COULD CRAM A LOT OF INTELLIGENCE INTO A DEVICE SO COMPACT IT COULD FIT INTO A MAN'S SUITCOAT BREAST POCKET OR THE SMALLEST PURSES AND RUN SEEMINGLY FOREVER ON A FEW BATTERIES FROM THE DRUGSTORE BUT GETTING INFORMATION INTO AND OUT OF THESE GIZMOS WAS NO PICNIC THE KEYBOARD WAS A CRAMPED TINY AFFAIR FILLED WITH BUTTONS BEARING MYSTERIOUS PICTOGRAMS AND SERVING MULTIPLE FUNCTIONS THE SCREEN WAS A DIM LITTLE WINDOW DISPLAYING ONLY A FEW LINES OF TEXT AT A TIME PRINTING WAS A CHORE THE WIZARD HAS ATTRACTED A CULT OF DEDICATED USERS WHO I SUPPOSE LOVE THE IDEA OF USING IT ENOUGH TO PUT UP WITH ITS SHORTCOMINGS FOR MANY PEOPLE HOWEVER THE PRODUCT WASN'T AS EFFECTIVE AS ITS MAIN RIVALS PAPER ORGANIZERS OR NOTEBOOK PCS WHICH OFFER MUCH MORE VERSATILE DATEBOOK AND ADDRESSBOOK SOFTWARE PLUS BETTER KEYBOARDS AND SCREENS ALL THAT MAY BE CHANGING SHARP HAS INTRODUCED A MUCH IMPROVED WIZARD THE OZ9600 WHICH ADDRESSES THE MAIN DRAWBACKS OF THE EARLIER DESIGN IT FEATURES A LARGER MORE USABLE KEYBOARD A BIGGER BETTER SCREEN AND WIRELESS LINKS TO REGULAR COMPUTERS AND STANDARD PRINTERS MOST IMPRESSIVE OF ALL THE NEW WIZARD FEATURES A MUCH MORE ROBUST SET OF BUILTIN SOFTWARE PROGRAMS THAT CAN BE CONTROLLED BY JUST TOUCHING THE SCREEN WITH A PLASTIC STYLUS STORED ABOVE THE KEYBOARD OR BY USING ANY OTHER HANDY IMPLEMENT INCLUDING YOUR FINGER YOU CAN EVEN JOT DOWN NOTES OR DRAW PICTURES DIRECTLY ON THE SCREEN AND THE WIZARD 9600 WILL STORE THEM FOR LATER RECALL THESE IMPROVEMENTS COME AT A PRICE THE NEW MODEL IS WIDER AND THICKER THAN THE PREVIOUS TOPOFTHELINE MODEL THE 8600 AND IT'S ABOUT 50 HEAVIER WEIGHING NEARLY A FULL POUND AS A RESULT IT NO LONGER FITS COMFORTABLY IN MOST POCKETS OR SMALLER PURSES IN ADDITION THE 9600 IS PRICEY EVEN AT DISCOUNT IT SELLS FOR OVER 500 25 MORE THAN THE 8600 TO SELECT ANY OF THE WIZARD'S FUNCTIONS YOU JUST TOUCH ONE OF 15 LITTLE ICONS OR PICTURES PERMANENTLY DRAWN ON THE LEFT SIDE OF THE 3BY4INCH SCREEN THE DEVICE HAS A CALENDAR SCHEDULER TODO LIST ADDRESS BOOK OUTLINER CALCULATOR AND A RUDIMENTARY WORD PROCESSOR FOR SHORT MEMOS AND LETTERS IN ADDITION IT HAS A DATABASE THAT CAN STORE THINGS OTHER THAN ADDRESSES AND DATES SUCH AS PRODUCT SPECIFICATIONS EACH OF THESE APPLICATIONS IS GRAPHICAL IN THE SPIRIT OF APPLE COMPUTER'S MACINTOSH COMPUTERS TO SEE DIFFERENT CALENDAR VIEWS FOR INSTANCE YOU TOUCH LITTLE BUTTONS ON THE SCREEN LABELED DAILY WEEKLY AND SO FORTH TO MOVE THROUGH THE ALPHABET IN THE ADDRESS BOOK YOU TOUCH TABS AT THE TOP AND BOTTOM OF THE SCREEN OTHER FUNCTIONS ARE CONTROLLED BY ONSCREEN MENUS THE WORD PROCESSOR NOW PERMITS THE USE OF DIFFERENT TYPE STYLES AND SIZES YOU CAN SET MARGINS AND PRINT ON A FULL SHEET OF PAPER USING A STANDARD PC PRINTER WITH AN ADDON DEVICE THAT SHARP SAYS WILL BE AVAILABLE SOON TEXT CAN BE SELECTED CUT AND PASTED BY TOUCHING IT THE NEW WIZARD HAS A SCRAPBOOK MODULE IN WHICH YOU CAN ENTER HANDWRITTEN NOTES AND DRAWINGS DIRECTLY ON THE SCREEN WITH THE STYLUS THESE ENTRIES CAN BE PASTED INTO MEMOS OR DATABASE RECORDS AS LITTLE POPUP NOTES BUT THE WIZARD DOESN'T TRANSLATE HANDWRITING INTO TEXT TWO FUNCTIONS TIE EVERYTHING TOGETHER A FILER WHICH RESEMBLES AN OPEN FILE DRAWER PICTURED ON THE SCREEN HAS IMAGINARY FOLDERS THAT CAN HOLD RELATED ENTRIES FROM DIFFERENT MODULES AND A GLOBAL SEARCH FEATURE WILL FIND WORDS AND PHRASES IN ANY OR ALL OF THE WIZARD'S MODULES LIKE ITS PREDECESSORS THE 9600 CAN USE CABLES TO TRANSFER DATA TO PCS WITH EXTRACOST SNAPIN CARDS FROM SHARP IT CAN ADD SUCH FUNCTIONS AS INVESTMENT ANALYSIS SPREADSHEETS AND FOREIGNLANGUAGE DICTIONARIES IT CAN ALSO USE A MODEM TO LINK TO ELECTRONICMAIL AND DATABASE SERVICES BUT THE NEW WIZARD CAN ALSO COMMUNICATE WITH PCS AND PRINTERS THROUGH INFRARED SIGNALS THE SAME KIND OF INVISIBLE WAVE THAT TV REMOTECONTROL UNITS USE YOU JUST PLUG A SPECIAL INTERFACE BOX INTO THE PC OR PRINTER AIM THE WIZARD 9600 AT IT AND YOU'RE IN BUSINESS I COULDN'T TEST THIS CAPABILITY BECAUSE THE INFRARED LINKS AREN'T YET AVAILABLE THOUGH THE WIZARD 9600 STILL RELIES ON A KEYBOARD IT HAS MATURED INTO A DEVICE THAT IS SORT OF A LOWEND PERSONAL DIGITAL ASSISTANT THE MUCHANTICIPATED COMING CLASS OF PENBASED HANDHELD COMPUTERS SHARP IS IN FACT A CODEVELOPER OF APPLE'S NEWTON PDA STILL MANY CURRENT USERS OF WIZARDS AND OTHER ELECTRONIC ORGANIZERS MAY PASS UP THE CHANCE TO MOVE UP TO THE LATEST THEY ARE ALREADY ACCUSTOMED TO THE LIMITATIONS OF THE CURRENT MODELS VALUE THEIR POCKETSIZED DIMENSIONS AND DON'T WANT TO SHELL OUT AN ADDITIONAL 500 JUST BECAUSE TECHNOLOGY MARCHES ON DOESN'T MEAN EVERYONE NEEDS TO FORM UP AT ITS LEADING EDGE BUT FOR THOSE WHO HAVE STUCK WITH PAPER DATE AND ADDRESS BOOKS AND USE NOTEBOOK PCS MAINLY FOR DATEBOOK FUNCTIONS AND WRITING SHORT MEMOS THE NEW WIZARD MAY FINALLY PROVIDE AN ALTERNATIVE THAT IS MORE FLEXIBLE THAN PAPER AND LIGHTER AND CHEAPER THAN A PC