ECONOMIC TIMES CAN'T BE THAT BAD IN SUCH PLACES AS LONG ISLAND AND CALIFORNIA AT LEAST IN SOME OF THE MORE COMFORTABLE AREAS FOLKS THERE STILL ENJOY THE LUXURY OF FIGHTING ECONOMIC GROWTH THAT MIGHT DISTURB THEM IN NEW YORK'S NASSAU AND SUFFOLK COUNTIES PLANS TO BUILD US HEADQUARTERS FOR TWO CAMERA COMPANIES CANON AND OLYMPUS HAVE MET LOCAL RESISTANCE IN LOS ANGELES PRODUCTION STUDIOS TRYING TO EXPAND ENCOUNTER THE SAME FATE IN THE SAN FRANCISCO BAY AREA THREE CITIES HAVE SEEN PETITION DRIVES LEAD TO REFERENDUMS BLOCKING MAJOR PROJECTS INCLUDING ONE IN THE WORKS FOR FOUR YEARS VOTING MAJORITIES WILL RULE WE SUPPOSE BUT THEY OUGHT TO PAY FOR ANY TAKING AND NO HUD GRANTS FOR COMMUNITIES THAT WON'T HELP THEMSELVES MAYBE SOMEONE SHOULD PUT OUT AN ANNUAL SURVEY OF TOWNS AND COUNTIES THAT WANT TO CONTINUE ADDING JOBS TO THEIR ECONOMIES COMPARED WITH THOSE THAT HAVE DECIDED THAT NO GROWTH IS QUITE ENOUGH 9301140068 930114 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO HERE'S THE DRILL DENTISTS' INFECTIONCONTROL COSTS RISE AND YOUR BILLS FOLLOW STIFFER GUIDELINES AND PATIENTS' FEARS OF CATCHING A VIRUS WHILE IN A DENTAL CHAIR SPUR COSTLY INFECTIONCONTROL STEPS DALLAS DENTIST MICHAEL BROWN HAS SEEN SUCH COSTS RISE 40 SINCE 1990 HE SCRUBS ROOMS WITH STRONGER DISINFECTANTS AFTER EACH PATIENT AND CHANGES PLASTIC COVERS OF CHAIRS AND FIXTURES PAUL TALLY A MICHIGAN DENTIST SPENT 10000 LAST YEAR TO UPGRADE HIS OFFICE SO SOME DENTISTS NOW CHARGE A 3 TO 12 INFECTIONCONTROL FEE PER VISIT DENTISTS ALSO BUY MORE DRILLS AS HEAT STERILIZATION BECOMES THE PREFERRED CLEANING METHOD FOR THE TOOLS THE AMERICAN DENTAL ASSOCIATION RECOMMENDED LAST SUMMER THAT DRILLS BE HEATSTERILIZED AFTER EACH USE RATHER THAN JUST DISINFECTED BUT THE PROCESS TAKES ABOUT HALF AN HOUR AND WEARS OUT THE TOOLS MORE QUICKLY AS A RESULT SAYS ADVEST INC ANALYST KURT KAMMERER THE US MARKET FOR DENTAL DRILLS HAS GROWN TO 175 MILLION FROM 115 MILLION IN 1991 AN ADA SURVEY SAYS 52 OF DENTISTS HEAT STERILIZE DRILLS AFTER EACH USE SUDS AND SCIENCE TEAM UP IN THE LAUNDRY ROOM AS WASHERS GO HIGHTECH APARTMENT BUILDING AND INDUSTRIAL LAUNDRIES GET SMARTER WHIRLPOOL CORP AND SETOMATIC CORP DEVELOP A REMOTE CONTROL FOR COINOPERATED WASHERS MACHINE OWNERS CAN MONITOR AND ALTER WASH CYCLES WATCH COIN REVENUE AND RESET PRICES FROM THE OFFICE MICROCHIPS IN COINMACH INDUSTRIES INC'S MACHINES WIRED TO THE ROSLYN NY COMPANY'S COMPUTER TRACK WHEN MACHINES ARE IN USE AND INSTANTLY NOTE MALFUNCTIONS HOTELS HOSPITALS AND OTHER INDUSTRIAL USERS LOOK FOR LOWER WASH COSTS AND LESS POLLUTION TRIOCLEAN LAUNDRY SYSTEMS INC FORT PIERCE FLA SELLS WASHERS THAT CLEAN WITH OZONE GASCHARGED COLD WATER NO DETERGENT NEEDED MEANWHILE IN THE HOME A GREEN PLUG THAT SAVES ON VOLTAGE FOR WASHERS DRYERS AND REFRIGERATORS ON THE HORIZON ENERGYEFFICIENT HEATPUMP DRYERS A PROTOTYPE IS BEING TESTED IT'S A MATCH REVENUEHUNGRY DAILIES DISCOVER THE APPEAL OF VOICE PERSONALS TAKING A PAGE FROM WEEKLIES BIG PAPERS START RUNNING PERSONALS THAT USE 900 NUMBERS DATESEEKERS USUALLY TAKE A FREE AD IN THE PAPER AND RECORD A VOICE MESSAGE ON THE 900 SYSTEM RESPONDENTS CALL TO LISTEN TO THE MISSIVE LEAVE A REPLY AND BROWSE FOR OTHER CANDIDATESPAYING UP TO 2 A MINUTE USUALLY THE SAME RATES ADVERTISERS PAY TO LISTEN TO RESPONSES DAILIES THAT FIRST SHUNNED THE FEATURE AS LOW BROW HAVE BEEN WON OVER BY ITS POPULARITY SAYS SARA STEPHENS OF VOICE PROCESSING MAGAZINE USA TODAY THE CHICAGO TRIBUNE AND THE HOUSTON POST ARE AMONG THE RECENT CONVERTS SEVERAL PAPERS DON'T EXPECT REVENUES TO EXCEED 1 OF CLASSIFIED SALES STILL THAT CAN BE A RESPECTABLE CHUNK OF MONEY THE ATLANTA JOURNAL/CONSTITUTION RECKONS ITS PERSONALS REVENUE BALLOONED TO 12 MILLION A YEAR FROM 40000 WHEN IT ADDED THE 900 SERVICE NEW TECHNOLOGY OFFERS CALLERS MORE OPTIONS RESULTING IN LONGER CALLS IT SAYS THE AVERAGE CALL IS FOUR MINUTES SAYS AUDIOTEXT SERVICE FIRM DATEMAKER INC COUPON CLIPPERS REDEEMED 77 BILLION COUPONS LAST YEAR SAVING A RECORD 45 BILLION UP 13 SAYS NCH PROMOTIONAL SERVICES CHICAGO BUT CLIPPING SLOWED IN THE SECOND HALF DUE PARTLY TO A DROP IN COUPONS ISSUED BY MANUFACTURERS USING EVERYDAY LOW PRICES AND A PICKUP IN THE ECONOMY TRENDS THAT MAY CONTINUE IN 1993 A 10 MILLION GIFT STARTS A FUND FOR THE UNIVERSITY OF PENNSYLVANIA'S MEDICAL SCHOOL WHICH HOPES TO PROVIDE FREE TUITION FOR ALL ITS STUDENTS IN 30 YEARS THE TWENTYFIRST CENTURY ENDOWED SCHOLARS FUND IS PROMPTED BY THE BELIEF THAT TUITION DEBT OFTEN TURNS STUDENTS AWAY FROM WORK IN MEDICAL EDUCATION AND COMMUNITY SERVICE DIEBOLD INC S NEWSLETTER TELLS THE SAGA OF DANIEL D BRAUN THE COMMUNITY BANK OFFICER IN HOMESTEAD FLA WITH HIS WIFE AND TWO CATS TOOK SHELTER FROM HURRICANE ANDREW IN THE BANK'S DIEBOLD VAULT THEY SURVIVED BUT THE COMPANY ADMONISHED DIEBOLD DOES NOT SUGGEST OR CONDONE THIS KIND OF USE OF ITS VAULTS ARE CONSUMERS READY FOR ONLINE INHOME DEBIT SYSTEMS THAT ALLOW THEM TO PAY BILLS BANK AND SHOP VIA THE PHONE AND A BANK OR CREDIT CARD RATHER THAN USING A PC YES SAYS BELL ATLANTIC WHICH TEAMED UP WITH WORLDCORP'S US ORDER TO OFFER SCANFONE IN WASHINGTON MICHIGAN BELL ALSO HAS THE SERVICE HOME POINT OF SALE A FLEDGLING CALIFORNIA FIRM RECENTLY TESTED ITS PROTOTYPE PHONE TERMINAL WITH AVON A COUPLE OF UNITED WAY LOCALS AND OTHERS SIMILAR PHONEBASED SERVICES PERCOLATE BUT DAVID ROBERTSON OF THE NILSON REPORT A SANTA MONICA CALIF CREDITCARD INDUSTRY NEWSLETTER DOESN'T EXPECT THE SYSTEMS TO GAIN FAVOR WITH CONSUMERS UNTIL YEAR 2000 OR SO TODAY OVERALL DEBITCARD USE FOR FAMILIAR CHORES LIKE BILL PAYING IS LIGHT STILL UNITED WAY OF AMERICA NOTES THE PHONE UNIT MAY BE A POTENTIAL ALTERNATIVE TO PAYROLL DEDUCTION DRIVES AT SMALL FIRMS AVON SAYS IT'S TOO EARLY TO TELL IF IT MAY USE ONE MORE THAN 40 BILLION IN PURCHASES ARE MADE FROM HOME YEARLY WITH CREDIT CARDS AND CHECKS SAYS THE NILSON REPORT BRIEFS SEVENTYFIVE TONS OF RECYCLED PAPER WERE USED FOR INVITATIONS TO CLINTON INAUGURAL EVENTS SAYS SUPPLIER CROSS POINTE PAPER CORP THE AMERICAN TAEKWONDO ASSOCIATION PLANS A 60SECOND FUNDRAISER DONORS PLEDGE FUNDS FOR EACH BOARD AS MARTIAL ARTISTS SIMULTANEOUSLY TRY TO BREAK A TOTAL OF 100000 BOARDS IN THE MINUTE 9301140067 930114 REVIEW & OUTLOOK EDITORIAL ANNOYING THE DINOSAURS HONG KONG'S GOVERNOR CHRIS PATTEN WITH HIS POPULIST TOUCH AND PLANS TO EXPAND THE HONG KONG FRANCHISE HAS HAD THE MANDARINS OF CHINA FLUSTERED FOR MONTHS THERE'S MORE TO COME HONG KONG'S EXECUTIVE COUNCIL JUST GOT ITS FIRST LOOK AT THE DRAFT LEGISLATION FOLLOWING UP ON MR PATTEN'S PROPOSALS THE PARTLY ELECTED LEGISLATIVE COUNCIL COULD BEGIN DEBATE ON THE BILL AS EARLY AS NEXT MONTH I'M AFRAID IT IS DIFFICULT FOR US TO SEE ANY PROSPECT OF REACHING A COMPROMISE WITH PATTEN IF HE DOES NOT ABANDON HIS PROPOSALS NEW CHINA NEWS AGENCY OFFICIAL ZHANG JUNSHENG TOLD NEWSWEEK IN A RECENT INTERVIEW ABANDONMENT SEEMS TO US A PECULIAR FORM OF COMPROMISE MR PATTEN TO HIS CREDIT HAS SO FAR REJECTED BEIJING'S SPECIAL BRAND OF COMPROMISE AND SO HAVE HONG KONG'S PEOPLE NOW WITH MR PATTEN'S PROPOSALS BEFORE THE EXECUTIVE COUNCIL IT'S TIME FOR THE TERRITORY'S GOVERNING BODIES TO MAKE THEIR STAND IT COULD HELP REDUCE THE PANIC FACTOR FOR ALL CONCERNED TO REMEMBER THAT CHRIS PATTEN'S PROPOSED REFORMS ARE NOT RADICAL OUR ONLY COMPLAINT WITH THEM IS THAT THEY STILL STOP SHORT OF EMBRACING A FULLY DEMOCRATIC SYSTEM FOR HONG KONG EVEN IF THE WHOLE PACKAGE IS ADOPTED WITHOUT A COMMA CHANGED FEWER THAN HALF THE MEMBERS OF THE LEGISLATIVE COUNCIL WILL BE ANYWHERE CLOSE TO BEING DIRECTLY ELECTED THE POWERFUL CHIEF EXECUTIVE WOULD STILL HAVE TO BE APPROVED BY BEIJING THE REAL ISSUES IN THIS FIGHT ARE WHO RULES HONG KONG BETWEEN NOW AND 1997 AND WHAT KIND OF HONG KONG WILL THERE BE AFTER THAT CHINA APPEARS TO MISS THE NOTSODISTANT DAYS OF PURE COLONIALISM IN HONG KONG UNDER OLD CHINA EXPERTS SUCH AS THE PREVIOUS GOVERNOR DAVID WILSON THERE WAS NO RISK OF SOME MODERN FORM OF GOVERNMENT GETTING THE UPPER HAND CHINA'S RULERS PROPOSED HONG KONG'S RULERS DISPOSED BOTH SIDES COULD SWAP TOASTS TO THE 1997 CONVERGENCE OF THEIR TWO SYSTEMS HONG KONG'S 58 MILLION PEOPLE ALAS WERE LARGELY LEFT OUT OF THE LOOP TREATED AS SPECTATORS WHO COULDN'T BE TRUSTED TO KNOW WHAT THEY WANTED FOR THEMSELVES THIS MAKES IT ALTOGETHER OBVIOUS THAT CHINA'S PRIORITY IN HONG KONG IS CONTROL NOT CONSTITUTIONAL NICETIES AND NOT THE MANTRA OF STABILITY AND PROSPERITY BEIJING SEES EVEN A SLIGHTLY LOUDER DEMOCRATIC VOICE AS A THREAT TO ITS DESIRE FOR DOMINANCE TO CAPTURE A FUTURE WITH THE PROMISED HIGH DEGREE OF AUTONOMY HONG KONG NEEDS TO TOSS ASIDE CHINA'S THREATS AND GRASP TIGHTLY TO THE DEMOCRATIC LIFELINE THAT CHRIS PATTEN IS OFFERING 9301140066 930114 MARKETSCAN OREIDA DISHES UP NEW POTATO PRODUCTS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL THE KING OF THE POTATO PATCH SMELLS DANGER OREIDA A UNIT OF HJ HEINZ CO DOMINATES FROZEN POTATOES WITH MORE THAN 50 OF THE MARKET LATELY THOUGH IT HAS BEEN THREATENED BY CONSUMERS MOVING AWAY FROM FRENCH FRIES AND BY INNOVATIONS FROM MAKERS OF RIVAL PRODUCTS SUCH AS JR SIMPLOT CO'S MICROMAGIC MICROWAVABLE FROZEN FRIES AND NORTHERN STAR CO'S SIMPLY POTATOES COOKED REFRIGERATED MASHED POTATOES AS A COUNTERPUNCH OREIDA IS INTRODUCING TWO NEW PRODUCTS FROZEN MASHED POTATOES AND A NEW FASTFOODSTYLE FRENCH FRY OREIDA WHICH IS BASED IN BOISE IDAHO WAS JOLTED FROM COMPLACENCY A FEW YEARS AGO WHEN UNIVERSAL FOODS CORP MILWAUKEE ROLLED OUT FROZEN CURLY FRIES AND SEASONED BATTERDIPPED FRIES ITEMS ORE IDA DIDN'T OFFER FROZEN POTATOES ARE AN APPROXIMATELY 23 BILLION BUSINESS WHOLESALE AND RETAIL COMBINED IN THE US WHERE ACCORDING TO THE NATIONAL POTATO BOARD THE AVERAGE PERSON GOBBLES 131 POUNDS OF POTATOES FRESH FROZEN OR OTHERWISE EACH YEAR AND PREFERS THEM BAKED OR FRIED AND MOSTLY THE LATTER OVERALL THE MARKET FOR FROZEN POTATOES DECLINED 35 BASED ON SUPERMARKET SALES IN THE LATEST 52 WEEKS ENDED NOV 29 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE BIG LOSER WAS FRIED POTATOES SALES OF FRIED POTATOES ALTHOUGH STILL THE LARGEST SELLING CATEGORY DROPPED 51 TO 657 MILLION IN THE 52WEEK PERIOD IN PART AS HEALTHCONSCIOUS AMERICANS TRY TO LIMIT FRIED FOODS IN THEIR DIETS BY CONTRAST SALES OF NONFRIED POTATOES ROSE 51 IN THE PERIOD TO 1331 MILLION WE HAD TOO LONG A CYCLE OF NEWPRODUCT DEVELOPMENT AND CAPITAL INVESTMENT SAYS PAT KINNEY OREIDA VICE PRESIDENT OF SALES WE WEREN'T AS REACTIVE TO THE MARKET ESPECIALLY TO NEW PRODUCTS AS WE SHOULD HAVE BEEN IN RECENT YEARS HOWEVER THE HEINZ UNIT HALVED THE LEAD TIME ON NEW PRODUCTS AND IN 1990 INTRODUCED COMPETING CURLY AND BATTERED FRIES IN QUICK SUCCESSION BUT THIS WINTER MARKS OREIDA'S BIGGEST MOST EXPENSIVE NEWPRODUCT ROLLOUT SINCE THE LAUNCH OF TATER TOTS IN 1953 THE COMPANY IS ADVERTISING ITS NEW FAST FRIES AS TASTING LIKE FRENCH FRIES FROM FASTFOOD OUTLETS AND ITS FROZEN MASHED POTATOES AS TASTING CLOSE TO HOMECOOKED OREIDA IS POURING 30 MILLION INTO MARKETING FAST FRIES THE PRODUCT WHICH THE COMPANY SAYS FARED WELL IN TEST MARKETS IS AN OVENBAKED SHOESTRING FRENCH FRY WHOSE LIGHT OILY COATING GIVES IT A BUTTERY FLAVOR WHICH ALSO SEEMS TO HELP IT STAY CRISP FAST FRIES ARE ALREADY IN MANY SUPERMARKETS NATIONWIDE A NATIONAL TV AD CAMPAIGN KICKS OFF THIS MONTH AS DOES A DIRECTMAIL COUPON CAMPAIGN BUT SOME WONDER WHETHER THE NEW FRY WILL FLY CONSIDERING COMPETITION WITH FASTER MICROWAVE VERSIONS DO FAST FRIES BRING ANYTHING NEW TO THE PARTY IS IT A STEP BACK IN TERMS OF CONVENIENCE WONDERS TIMOTHY S RAMEY AN ANALYST WITH CJ LAWRENCE OREIDA SAYS IT IS TARGETING CONSUMERS WHO HAVE BEEN DISAPPOINTED BY TRADITIONAL OVENBAKED AND MICROWAVABLE FRIES AND WHO DON'T WANT TO SPEND THE MONEY OR TIME ON TAKEOUT FRIES AT THE NEAREST MCDONALD'S THE COMPANY BOASTS THAT FAST FRIES HAVE HALF THE FAT OF FASTFOOD FRIES SEVEN GRAMS OF FAT PER THREEOUNCE SERVING THAT IS STILL MORE FAT THAN OREIDA CLASSIC CUT FRIES WHICH HAVE FOUR GRAMS OF FAT PER SERVING NOTES CINCINNATIBASED FOOD CONSULTANT TRACY DUCKWORTH OREIDA MAKES SOME MICROWAVABLE FROZEN POTATOES CRINKLE CUTS TATER TOTS AND HASH BROWNS THEY'RE GOOD PRODUCTS BUT THEY'RE NOT GREAT SAYS GARY LANEY OREIDA NEWPRODUCTS MANAGER ADDING THAT THEY ARE MUSHIER THAN THEY SHOULD BE OREIDA IS TRYING TO IMPROVE THE PRODUCTS HE SAYS OREIDA'S OTHER NEW PRODUCT FROZEN MASHED POTATOES HIT SUPERMARKETS EARLIER THIS MONTH AFTER DOING WELL IN CONSUMER TASTE TESTS THE NEW POTATOES HAVE A FRESH SLIGHTLY SWEET TASTE AND CONTAIN SMALL POTATO LUMPS AN APPARENT ATTEMPT AT AUTHENTICITY IT'S A COMFORT FOOD SAYS OREIDA'S MR KINNEY ADDING THAT AMERICANS SEEM TO YEARN FOR OLDFASHIONED DISHES THESE DAYS OREIDA MASHEDPOTATO ADS NOW RUNNING ON TV FEATURE A GRANDMOTHERLY WOMAN IN HER KITCHEN FIXING THE FROZEN MASHED POTATOES IN HER MICROWAVE THE PROLIFERATION OF FROZEN STUFFED BAKED POTATOES IN SUPERMARKET FREEZERS SHOWS CONSUMERS WANT RESTAURANTSTYLE FOOD AT HOME WITHOUT MAKING MUCH OF AN EFFORT OREIDA'S ENTRIES IN THIS CATEGORY INCLUDE SEVERAL VARIETIES OF TWICEBAKED POTATOES AND BAKED POTATOES WITH TOPPINGS STOUFFER FOODS CORP A UNIT OF NESTLE SA SAW ITS SALES RISE MORE THAN 100 IN THE RECENT 52WEEK PERIOD REFLECTING NEW BAKED POTATOES WITH TOPPINGS THIS ALLOWS PEOPLE TO EAT SOMETHING THAT SEEMS HEALTHIER THAN FRIES WHICH IT MAY ACTUALLY NOT BE AND IT'S A LITTLE FANCIER IT SATISFIES YOU MORE THAN A PLAIN BAKED POTATO SAYS MS DUCKWORTH THE FOOD CONSULTANT OREIDA'S BIGGEST COMPETITION COMES FROM PRIVATELABEL FROZEN POTATOES WHICH HOLD THE NO 2 SPOT IN THE SUPERMARKET PRIVATELABEL CONCERNS THRIVE PARTICULARLY DURING POTATO GLUTS WHEN PLUMMETING PRICES ALLOW THEM TO UNDERCUT OREIDA'S PREMIUM PRICES EVEN MORE THAN USUAL AT SUCH TIMES WE CAN OFFER EQUAL QUALITY AND BETTER VALUE SAYS A SPOKESMAN FOR TOPCO ASSOCIATES INC CHICAGO WHOSE FROZEN POTATOES CARRY VARIOUS LABELS INCLUDING FOOD CLUB TOP FROST MEGA MAXI AND VALU TIME OREIDA'S MARKET SHARE HASN'T GROWN OVER THE LAST SEVERAL YEARS BECAUSE OF CONTINUED CHEAP POTATOES AND PRIVATE LABELS SAYS MR RAMEY THE ANALYST ALTHOUGH OREIDA SALES SUFFERED WHEN POTATOES WERE OVERLY ABUNDANT FROM SEPTEMBER 1991 TO JUNE 1992 THE SUPPLY HAS SINCE STABILIZED OREIDA SAYS THE REST OF OREIDA'S COMPETITION IS SPLINTERED AMONG FOOD MANUFACTURERS MANY OF WHICH FOCUS ON THE WHOLESALE MARKET SERVING RESTAURANTS AND INSTITUTIONAL CAFETERIAS RETAIL IS A RELATIVELY MINOR PART OF OUR OVERALL BUSINESS SAYS FRED ZERZA A SPOKESMAN FOR JR SIMPLOT A CLOSELY HELD COMPANY IN BOISE THAT SUPPLIES FASTFOOD PURVEYORS SUCH AS MCDONALD'S WENDY'S AND BURGER KING FOR RETAIL SIMPLOT PRODUCES MICROMAGIC FROZEN FRIES AND REGULAR OVENBAKED FROZEN FRIES AND HASH BROWNS UNDER THE SIMPLOT NAME MEANWHILE AT THE ORIGINAL HOT DOG SHOP IN PITTSBURGH FRENCH FRY FANS SAY NOTHING FROZEN CAN EVER BEAT THE REAL THING THE O AS THE ESTABLISHMENT IS KNOWN LOCALLY SERVES 30000 POUNDS OF IDAHO POTATOES A WEEK HEAPING CRISPY CRUNCHY SALTY FRIES IN CARDBOARD TRAYS TILL THEY OVERFLOW KELLY COSTELLO WHO ORDERS POTATOES FOR THE O BY THE TRUCKLOAD SAYS COMPANIES SUCH AS OREIDA OCCASIONALLY TRY TO WOO HER OVER TO THEIR FROZENPOTATO PRODUCTS I'LL COOK THEM AT HOME IF I'M IN A HURRY MS COSTELLO SAYS BUT THEY DON'T TASTE AS GOOD WE WON'T SERVE THEM HERE HJ HEINZ IS HOPING TO ADD MUCH NEEDED SIZZLE TO THE MARKET FOR FROZEN POTATOES WITH A NEW FRENCH FRY THAT PROMISES FASTFOOD FLAVOR BASED ON SALES IN SUPERMARKETS DURING THE 52 WEEKS ENDED NOV 29 9301140065 930114 WHO'S NEWS ANDROS INC ANDROS INC BERKELEY CALIF VENTURE CAPITALIST EUGENE KLEINER A FOUNDING PARTNER OF KLEINER PERKINS CAUFIELD & BYERS WAS NAMED TO THE NEW POST OF CHAIRMAN OF THIS MAKER OF MEDICAL INSTRUMENTS AND TEST EQUIPMENT ROBERT C WILSON A CONSULTANT AND FORMER CHIEF EXECUTIVE OF MEMOREX CORP WAS ALSO NAMED A DIRECTOR OF THE COMPANY RAISING THE BOARD'S MEMBERSHIP TO SIX 9301140064 930114 ROY F WESTON FORMS VENTURE WEST CHESTER PA ROY F WESTON INC SAID IT FORMED A JOINT VENTURE IN ENVIRONMENTAL CONSULTING WESTON ITALIA SRL WITH SILEC SPA OF ITALY THE VENTURE WHICH WILL SPECIALIZE IN INDUSTRIAL WASTE WILL PROVIDE ENVIRONMENTAL SERVICES INCLUDING ENGINEERING CLEANUP CONSULTING AND CONSTRUCTION SERVICES THROUGHOUT ITALY WESTON HAS A 40 STAKE IN THE VENTURE AND SILEC HOLDS THE REMAINING 60 SILEC IS A UNIT OF SILEC GROUP 9301140063 930114 CLINTON SUGGESTS DEFICIT MAY CANCEL A TAX CUT LITTLE ROCK ARK PRESIDENTELECT CLINTON SUGGESTED THAT THE BALLOONING FEDERAL DEFICIT MAY FORCE HIM TO FORGO A MIDDLECLASS TAX CUT BUT SAID HE REMAINED COMMITTED TO TAX FAIRNESS FOR WORKINGCLASS AMERICANS MR CLINTON IN AN INTERVIEW WITH ARKANSAS MEDIA WAS ASKED DIRECTLY IF THE TAX CUT HE PROMISED IN THE CAMPAIGN WOULD BE RECONSIDERED THERE IS A CHANCE WE WILL PRESENT A SLIGHTLY DIFFERENT PROGRAM MR CLINTON REPLIED ADDING THAT HE INITIALLY PROPOSED THE CUT TO STIMULATE THE ECONOMY AND RELIEVE SOME OF THE TAX BURDEN ON THE MIDDLE CLASS MR CLINTON ADDED ABOUT THE PROPOSED TAX CUT IT IS FAIR TO SAY IT MAY BE CHANGED I STILL THINK THE FAIRNESS ARGUMENT IS IMPORTANT AND WE HAVE TO CHANGE THE DETAILS OF IT THE PRESIDENTELECT'S COMMENTS FOLLOW REMARKS IN THE PAST FEW DAYS BY AIDES AND TOP CONGRESSIONAL DEMOCRATS WHO SEEM TO BE PUSHING HIM TOWARD DROPPING THE MIDDLECLASS TAX CUT FOR NOW MR CLINTON NOTED THAT WHEN HE CONSIDERS TAX FAIRNESS HE MUST ALSO TAKE INTO ACCOUNT THE SIZE OF THE DEFICIT 9301140062 930114 ENVIRONMENTALISTS US FOREST SERVICE SET LOGGING ACCORD BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO THE US FOREST SERVICE AND ENVIRONMENTALISTS REACHED AN AGREEMENT THAT WILL LIMIT LOGGING IN CALIFORNIA SPOTTED OWL HABITAT IN THE STATE'S SIERRA NEVADA MOUNTAIN RANGE THE CALIFORNIA SPOTTED OWL IS A COUSIN OF THE NORTHERN SPOTTED OWL WHOSE DESIGNATION AS A PROTECTED SPECIES SPAWNED COURTROOM FIGHTS AND RESTRICTIONS ON LOGGING ON FEDERAL LANDS IN THE NORTHWEST TIMBER INTERESTS ATTACKED THE AGREEMENT AND VOWED TO SUE THE FOREST SERVICE HAILED IT AS A POTENTIAL MODEL FOR THE INCOMING CLINTON ADMINISTRATION WHICH HAS PROMISED AN ANCIENT FOREST SUMMIT TO RESOLVE THE BATTLE OVER US TIMBER POLICY TIMBER COMPANIES HAVE ARGUED THAT RESTRICTIONS ON LOGGING IN NORTHERN SPOTTED OWL HABITAT DIDN'T APPLY TO CALIFORNIA SPOTTED OWL HABITAT BECAUSE THE TWO SPECIES WEREN'T PRECISELY THE SAME ENVIRONMENTALISTS DIDN'T AGREE AND HAD THREATENED A LEGAL BATTLE WHAT WE'VE ACHIEVED HERE IS A POTENTIAL MODEL FOR FUTURE RESOLUTIONS OF THE PROBLEMS IN THE FOREST WITHOUT YEARS OF COURT BATTLES SAID DAVID EDELSON AN ATTORNEY WITH THE NATURAL RESOURCE DEFENSE COUNCIL WHICH REPRESENTED A COALITION OF ENVIRONMENTAL GROUPS ADDED CHRIS BOWEN SPOKESMAN FOR THE FOREST SERVICE'S REGIONAL OFFICE OF THE FOREST SERVICE WE'VE TRIED TO AVOID A COURT FIGHT WHICH FEDERAL FOREST MANAGEMENT AGENCIES HAVE OBVIOUSLY NOT BEEN ABLE TO DO IN THE PAST HOWEVER BILL DENNISON PRESIDENT OF THE CALIFORNIA FORESTRY ASSOCIATION CALLED THE AGREEMENT A BLACKJACK HELD OVER THE HEADS OF LOGGERS AND THEIR FAMILIES AND ATTACKED THE FOREST SERVICE FOR CAVING IN TO BLACKMAIL AND JUNK SCIENCE THE AGREEMENT IS AN INTERIM MEASURE THAT PUTS TEMPORARY RESTRICTIONS ON CLEARCUTTING AND OTHER LOGGING PRACTICES IN PLACE IN THE SIERRA NEVADA A FORESTED SPINE OF HIGH MOUNTAINS ALONG THE EASTERN EDGE OF THE STATE A MORE DETAILED PLAN WILL BE WORKED OUT LATER UNDER THE AGREEMENT ANY TREE LARGER THAN 30 INCHES IN DIAMETER CAN'T BE CUT THE PACT COVERS SOME 53 MILLION ACRES OF TIMBERLAND IN EIGHT NATIONAL FORESTS 9301140061 930114 LEISURE & ARTS BOOKSHELF THE NOVELIST AS PHILOSOPHER BY ROGER KIMBALL THE ENGLISH WRITER IRIS MURDOCH IS BEST KNOWN AS A NOVELIST BUT ANYONE WHO HAS DIPPED INTO ONE OR TWO OF HER 24 NOVELS WILL HAVE RECOGNIZED THAT SHE IS ALSO A PASSIONATE AND ARTICULATE PHILOSOPHICAL MORALIST PHILOSOPHY WAS ORIGINALLY DAME IRIS'S PROFESSION AS WELL AS HER CALLING AND STUDENTS OF CONTEMPORARY PHILOSOPHY WILL REMEMBER GRATEFULLY THAT IN ADDITION TO HER IMMENSE LITERARY OUTPUT SHE IS THE AUTHOR OF SEVERAL SHORT BUT UNUSUALLY COMPELLING PHILOSOPHICAL WORKS ON JEANPAUL SARTRE ON PLATO AND ON MORAL PHILOSOPHY METAPHYSICS AS A GUIDE TO MORALS ALLEN LANE/PENGUIN 520 PAGES 35 IS A KIND OF SUMMARY AND ELABORATION OF DAME IRIS'S PHILOSOPHICAL VIEWS BY FAR THE LONGEST OF HER PHILOSOPHICAL WORKS IT REPRESENTS A REWORKING OF HER CONTRIBUTION TO THE GIFFORD LECTURES ON NATURAL RELIGION THIS VENERABLE SCOTTISH LECTURE SERIES HAS BEEN THE OCCASION FOR MANY IMPORTANT BOOKS INCLUDING WILLIAM JAMES'S VARIETIES OF RELIGIOUS EXPERIENCE EXPERIENCE HAS TAUGHT MOST OF US TO REGARD BOOKS WITH TITLES INCLUDING THE WORD METAPHYSICS AS A BIT OF A YAWN ADDING THE WORD MORALS DOESN'T HELP MUCH BUT ANYONE WHO HAS EVEN THE SLIGHTEST INTEREST IN PHILOSOPHICAL MATTERS WILL FIND METAPHYSICS AS A GUIDE TO MORALS AN UTTERLY ABSORBING BOOK IT DEALS WITH AN IMPRESSIVE RANGE OF PHILOSOPHICAL FIGURES FROM PLATO TO THE FRENCH DECONSTRUCTIONIST JACQUES DERRIDA WHOSE NIHILISTIC PHILOSOPHICAL HIGH JINKS COME IN FOR SOME POLITE BUT WITHERING CRITICISM SHE IS ESPECIALLY SHREWD IN PINPOINTING THE DEEP AFFINITY THE HOLDING HANDS UNDER THE TABLE OF DECONSTRUCTION AND MARXISM DAME IRIS TOUCHES ON AN AMBITIOUS RANGE OF PHILOSOPHICAL TOPICS INCLUDING TO QUOTE A FEW CHAPTER TITLES NOTES ON WILL AND DUTY IMAGINATION MORALS AND POLITICS AND AXIOMS DUTIES EROS DESPITE ITS STANDARD PANTHEON OF FIGURES AND SUBJECTS HOWEVER HER BOOK IS BY NO MEANS AN ORDINARY ACADEMIC TRACT FOR ONE THING DAME IRIS WRITES BEAUTIFULLY FOR ANOTHER SHE WRITES ABOUT IMPORTANT MATTERS PHILOSOPHY IN THE OLD NOT THE ACADEMIC SENSE AND SHE IS NOT GIVEN TO STERILE LOGIC CHOPPING OF COURSE THERE IS SOMETHING SLYLY PARADOXICAL ABOUT THE TITLE OF THIS BOOK HOW CAN METAPHYSICS THE MOST RAREFIED BRANCH OF PHILOSOPHICAL SPECULATION BE A GUIDE TO MORALS THE MOST CONCRETE AND DOWNTOEARTH THE ANSWER IS SUMMED UP IN DAME IRIS'S ABIDING CONVICTION THAT HUMAN LIFE IS A PILGRIMAGE FROM APPEARANCE TO REALITY AT THE CENTER OF DAME IRIS'S THINKING ARE THE IDEAS THAT LIFE IS A JOURNEY THE UNDERTAKING OF WHICH IS A MORAL IMPERATIVE AND THAT THE ACHIEVEMENT OF INSIGHT IS TANTAMOUNT TO THE RECOGNITION OF VIRTUE IN THIS CONTEXT SHE SPEAKS OF IN ANOTHER FAVORITE IMAGE THE DISTURBING MAGNETISM OF TRUTH METAPHYSICS IS A GUIDE TO MORALS TO THE EXTENT THAT SEEING THROUGH APPEARANCES TO THE NATURE OF THINGS IS ITSELF A MORAL ACT THE GOOD AND THE JUST LIFE SHE WRITES IS A PROCESS OF CLARIFICATION AS DAME IRIS'S LANGUAGE SUGGESTS THE PRESIDING PHILOSOPHICAL SPIRIT IN THIS BOOK IS PLATO AS SHE PUTS IT IN HER CONCLUDING PAGES SHE HAS ATTEMPTED TO USE PLATO'S IMAGES AS A SORT OF ONTOLOGICAL PROOF OF THE NECESSITY OF THE GOOD TO PUT HIS ARGUMENT INTO A MODERN CONTEXT AS A BACKGROUND TO MORAL PHILOSOPHY THE MODERN CONTEXT MEANS PARTLY THAT DAME IRIS'S VERSION OF PLATO HAS BEEN WEANED ON THE CHASTENING PHILOSOPHY OF LUDWIG WITTGENSTEIN PARTLY THAT SHE SEES PHILOSOPHY VERY MUCH AS AN EVERYDAY CHALLENGE EVERYONE SHE WRITES EVERY MORAL BEING THAT IS EVERY HUMAN BEING IS INVOLVED IN THIS FIGHT IT IS NOT RESERVED FOR PHILOSOPHERS ARTISTS AND SCIENTISTS IN THE BROADEST TERMS THIS BOOK IS AN EFFORT TO THINK THROUGH THE FUTURE OF MORALITY IN AN AGE THAT IS NOT ONLY POSTMODERN BUT ALSO INCREASINGLY POSTCHRISTIAN AND INDEED POSTPHILOSOPHICAL HENCE HER CONVICTION THAT WE NEED A THEOLOGY WHICH CAN CONTINUE WITHOUT GOD IN THIS RESPECT DAME IRIS FOLLOWS THAT MOST MODERN OF 19THCENTURY GERMAN PHILOSOPHERS FRIEDRICH NIETZSCHE LIKE NIETZSCHE SHE BELIEVES THAT THE TRADITIONAL EDIFICE OF WESTERN THINKING ABOUT MORALITY BUILT UP SINCE THE GREEKS IS NOW CRUMBLING AND THAT SOME ENTIRELY NEW MODE OF THINKING IS COMING TO BE IT IS PART OF THE MODERN PREDICAMENT DAME IRIS DESCRIBES THAT PHILOSOPHY CAN TELL US VERY LITTLE ABOUT THE NATURE OF THIS NEW MODE OF THINKING THE REVOLUTION OF MODERNITY IS AS MUCH A REVOLUTION IN INTUITION AND FEELING AS IN THOUGHT METAPHYSICAL PROBLEMS SHE OBSERVES NOW REACH THE POPULAR CONSCIOUSNESS IN THE FORM OF A SENSE OF LOSS IN THIS SITUATION PHILOSOPHY FUNCTIONS LIKE THE VOICE OF CONSCIENCE SAYING LITTLE EXCEPT NO FOR CLUES ABOUT THE BRAVE NEW WORLD THAT IS EMERGING AROUND US DAME IRIS TURNS TO THE INSIGHTS FURNISHED BY ART THE WAY WE GRASP THE WORLD CHANGES AND THE ARTIST KNOWS FIRST LIKE THE ANIMALS WHOSE BEHAVIOUR FORETELLS AN EARTHQUAKE THE GREAT IRONY THAT ATTACHES TO THIS BOOK AS TO ALL BOOKS SEEKING TO EXPATIATE ON THE GOOD LIFE IS THAT THEORIZING ABOUT MORALITY IS TYPICALLY AT RIGHT ANGLES FROM THE PRACTICE OF MORALITY DAME IRIS IS FULLY AWARE OF THE IRONY THERE IS AN IMPORTANT DIFFERENCE SHE WRITES BETWEEN LEARNING ABOUT VIRTUE AND PRACTISING IT AND THE FORMER CAN INDEED BE A DELUSIVE SUBSTITUTE WHICH EFFECTIVELY PREVENTS THE LATTER IT IS A MEASURE OF DAME IRIS'S POWER AND CHARM AS A WRITER THAT HER MEDITATIONS ON SUCH WEIGHTY SUBJECTS CONFESS THEIR VULNERABILITY AND IMPERFECTION WHILE AT THE SAME TIME THEY REMIND US POIGNANTLY OF OURS 9301140060 930114 TECHNOLOGY BRIEF US SURGICAL CORP US COURT BLOCKS LILLY UNIT FROM SELLING CERTAIN DEVICE A FEDERAL COURT IN CALIFORNIA ISSUED A PRELIMINARY INJUNCTION BLOCKING AN ELI LILLY & CO UNIT FROM SELLING AN ENDOSCOPIC DEVICE BASED ON US SURGICAL CORP PATENTS THE CASE INVOLVED TROCARS TUBES USED IN ENDOSCOPIC OR MINIMALLY INVASIVE SURGERY THE INJUNCTION WAS ISSUED AGAINST ORIGIN MEDASYSTEMS INC THE LILLY UNIT A US SURGICAL SPOKESWOMAN SAID THE COMPANY SEES THE INJUNCTION AS A GOOD INDICATION OF THE EVENTUAL OUTCOME OF THE CASE BASED IN NORWALK CONN US SURGICAL IS A MAJOR MANUFACTURER OF SURGICAL STAPLERS AND EQUIPMENT USED IN MINIMALLY INVASIVE SURGERY LILLY ACQUIRED ORIGIN MEDSYSTEMS INC WHICH MAKES THE TROCARS IN FEBRUARY 1992 LILLY SAID ITS SAN CARLOS CALIF UNIT HAS REQUESTED A STAY OF THE PRELIMINARY INJUNCTION IN FEDERAL DISTRICT COURT IN THE NORTHERN DISTRICT OF CALIFORNIA LILLY CONTENDS THE US SURGICAL PATENT IS INVALID AND THAT ITS ORIGIN UNIT DOESN'T INFRINGE UPON IT ORIGIN HAS BEEN SHIPPING AND MARKETING THE INSTRUMENTS SINCE MAY 1992 9301140059 930114 BUSINESS BRIEF CENTRAL FIDELITY BANKS INC NET ROSE 48 IN 4TH PERIOD 3FOR2 STOCK SPLIT DECLARED CENTRAL FIDELITY BANKS INC REPORTED A 48 INCREASE IN FOURTHQUARTER EARNINGS AND DECLARED A 3FOR2 STOCK SPLIT THE RICHMOND VA BANK HOLDING COMPANY'S SHARES ROSE 150 ON THE NEWS TO 4150 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CENTRAL FIDELITY REPORTED NET OF 222 MILLION OR 58 CENTS COMPARED WITH 15 MILLION OR 46 CENTS A SHARE IN THE 1991 QUARTER FOR THE YEAR EARNINGS ROSE TO 785 MILLION OR 225 A SHARE FROM 604 MILLION OR 187 A SHARE PERSHARE RESULTS HAVE BEEN RESTATED TO REFLECT THE STOCK SPLIT ALTHOUGH IT ISN'T PAYABLE UNTIL FEB 22 TO SHARES OF RECORD JAN 29 TOTAL ASSETS GREW NEARLY 28 FOR THE YEAR TO 871 BILLION TOTAL LOANS GREW 92 TO NEARLY 4 BILLION FIRST MORTGAGES ACCOUNTED FOR MOST OF THE LOAN GROWTH NET INTEREST INCOME INCREASED 22 FOR THE YEAR TO 2945 MILLION ALTHOUGH THE NET INTEREST MARGIN THE DIFFERENCE BETWEEN RATES RECEIVED ON LOANS AND RATES PAID FOR FUNDS NARROWED TO 440 FROM 448 NONINTEREST INCOME EXCLUDING SECURITIES TRANSACTIONS ROSE 14 TO 626 MILLION 9301140058 930114 BUSINESS BRIEF NYNEX CORP NEW YORK PHONE MANAGERS JOIN AGEDISCRIMINATION SUIT MORE THAN 140 FORMER NEW YORK TELEPHONE CO MIDDLE MANAGERS HAVE JOINED IN A LAWSUIT ALLEGING THAT THE COMPANY UNFAIRLY TARGETED OLDER EMPLOYEES IN A STAFF REDUCTION LAST MONTH TWO SEPARATE LAWSUITS WERE FILED IN FEDERAL COURT IN NEW YORK SEEKING CLASSACTION STATUS ONE OF THE SUITS WAS ACCOMPANIED BY STATEMENTS SIGNED BY 146 FORMER NEW YORK TELEPHONE EMPLOYEES AGREEING TO PARTICIPATE IN A CLASS ACTION AGAINST THE COMPANY A UNIT OF NYNEX CORP THE SUITS SEEK REINSTATEMENT OF THE EMPLOYEES OR UNSPECIFIED DAMAGES THE LAWSUITS ALLEGE THAT NEW YORK TELEPHONE TARGETED OLDER EMPLOYEES IN ITS WORKFORCE REDUCTION LAST MONTH NEW YORK TELEPHONE LET GO 594 MIDDLE MANAGERS OUT OF A TOTAL OF ABOUT 8600 EMPLOYEES THE COMPANY SAID THE REDUCTION WAS NECESSARY TO KEEP IT COMPETITIVE A NEW YORK TELEPHONE SPOKESMAN SAID THE COMPANY HAS NOT SEEN THE LAWSUITS SO IT CAN'T COMMENT ON THEM BUT HE SAID THE COMPANY IS CONFIDENT THAT THE FORCE REDUCTION WAS CARRIED OUT IN A CONSISTENT MANNER 9301140057 930114 BUSINESS BRIEF WORTHEN BANKING CORP DATA ON TWO ACQUISITIONS WASN'T SUFFICIENT SUIT SAYS A SHAREHOLDER OF WORTHEN BANKING CORP SUED THE COMPANY AND ITS DIRECTORS CLAIMING THAT WORTHEN FAILED TO DISCLOSE ENOUGH INFORMATION ABOUT TWO PROPOSED ACQUISITIONS SHAREHOLDER MURIEL WINICKI IN A SUIT FILED IN NEW YORK FEDERAL COURT SAID THE LITTLE ROCK ARK COMPANY FAILED TO DISCLOSE SUFFICIENT INFORMATION ABOUT ITS PROPOSED ACQUISITIONS OF STEPHENS DIVERSIFIED LEASING INC AND UNION OF ARKANSAS CORP THE DEALS WHEN COMPLETED WILL INCREASE WORTHEN'S ASSET BASE TO ABOUT 35 BILLION FROM 224 BILLION AS OF SEPT 30 1991 WORTHEN IN A NEWS RELEASE SAID IT BELIEVES THAT ITS PROXY STATEMENT FULLY DISCLOSED INFORMATION ABOUT THE TRANSACTIONS AND VOWED TO DEFEND ITSELF AGAINST ALLEGATIONS IN THE SUIT 9301140056 930114 BUSINESS BRIEF NATIONAL CITY CORP BANK AGREES WITH ESTIMATES OF ITS FOURTHQUARTER PROFIT NATIONAL CITY CORP WITH ITS STOCK TRADING AT A HIGHER VOLUME THAN USUAL PRIOR TO THE RELEASE OF RESULTS TODAY IS COMFORTABLE WITH ANALYSTS' FOURTHQUARTER EARNINGS ESTIMATES ACCORDING TO TREASURER THOMAS RICHLOVSKY THE CLEVELANDBASED BANK HOLDING COMPANY DECLINED TO BE MORE SPECIFIC ANALYSTS HAVE PREDICTED THAT NATIONAL CITY WILL POST NET INCOME OF BETWEEN 105 AND 115 A SHARE IN THE YEAREARLIER QUARTER NATIONAL CITY EARNED 63 MILLION OR 98 CENTS A SHARE FOR 1991 THE COMPANY REPORTED A PROFIT OF 231 MILLION OR 362 A SHARE NATIONAL CITY'S SHARES WERE QUOTED AT 49625 UP 75 CENTS ON VOLUME OF 62 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9301140055 930114 ECONOMY FISCAL STIMULUS IS EMPHASIZED BY 2 NOMINEES SENATE PANELS HEAR RIVLIN ALTMAN CITE IMPORTANCE OF ECONOMIC RECOVERY BY RICK WARTZMAN AND LUCINDA HARPER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TWO OF BILL CLINTON'S TOP ADVISERS GAVE THE STRONGEST SIGNAL IN RECENT DAYS THAT THE PRESIDENTELECT'S ECONOMIC PLAN IS LIKELY TO INCLUDE SOME MODEST SHORTTERM FISCAL STIMULUS IN SEPARATE SENATE CONFIRMATION HEARINGS YESTERDAY DEPUTY BUDGET DIRECTORDESIGNATE ALICE RIVLIN AND DEPUTY TREASURY SECRETARYDESIGNATE ROGER ALTMAN BOTH SPOKE OF THE IMPORTANCE OF ENSURING THAT THE ECONOMIC RECOVERY NOT FALTER AND INDICATED THAT SPENDING INCREASES OR TAX CUTS MIGHT BE APPROPRIATE LATELY MR CLINTON'S AIDES HAVE EMPHASIZED THE NEED FOR REDUCING THE DEFICIT ABOVE ALL ELSE AND NEITHER MS RIVLIN NOR MR ALTMAN BACKED AWAY FROM THAT COMMITMENT STILL THEY SUGGESTED THAT A PLAN FEATURING STIMULUS IN THE SHORT RUN AND DEFICITREDUCTION IN THE LONGER TERM WOULD PERHAPS MAKE THE MOST SENSE OF ALL WE ARE CLEARLY OPERATING THIS ECONOMY BELOW CAPACITY SO AT THE MOMENT IT WOULD BE RISKY TO BRING THE DEFICIT DOWN QUICKLY MS RIVLIN TOLD THE GOVERNMENTAL AFFAIRS COMMITTEE WE PROBABLY NEED TO ENGAGE IN SOME STIMULUS FOR THE ECONOMY APPEARING BEFORE THE FINANCE COMMITTEE MR ALTMAN SAID THERE ARE THREE INGREDIENTS TO A BOLD ECONOMIC PLAN SOME STIMULUS NOW AN INCREASING RATE OF GOVERNMENT INVESTMENT AND A REDUCTION IN THE BUDGET DEFICIT NEITHER NOMINEE SPELLED OUT WHAT FORM THE STIMULUS WOULD TAKE OR HOW LARGE A PACKAGE IT WOULD BE EARLIER THIS WEEK HOWEVER BUDGET DIRECTORDESIGNATE LEON PANETTA SAID THAT IF THERE WERE A STIMULUS PACKAGE IT WOULD PROBABLY BE CLOSER TO 20 BILLION THAN THE 60 BILLION THAT SOME ECONOMISTS HAVE URGED ALTHOUGH A SHORTTERM STIMULUS PACKAGE SEEMED CERTAIN THROUGH MUCH OF THE CAMPAIGN IT HAS BECOME MORE QUESTIONABLE AS THE ECONOMY HAS STRENGTHENED AND THE BUDGETDEFICIT OUTLOOK HAS WORSENED SOME CLINTON ECONOMIC ADVISERS HOWEVER HAVE SAID THAT STIMULUS IS STILL AN OPTION BECAUSE UNTIL THE ECONOMY BEGINS CREATING JOBS AT A HEALTHY PACE THE STRENGTH OF THE ECONOMIC RECOVERY WILL BE IN DOUBT BOTH MR ALTMAN AND MS RIVLIN WERE ASKED ABOUT THE WISDOM OF IMPOSING NEW TAXES ON CONSUMPTION A POLICY MS RIVLIN HAS ADVOCATED IN THE PAST MS RIVLIN AN ECONOMIST AND FORMER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE EMPHASIZED THE DIFFICULTIES OF MOVING TOWARD A BROADBASED CONSUMPTION TAX SAYING SHE WASN'T SURE THE TECHNICAL PROBLEMS ASSOCIATED WITH THE TRANSITION WOULD BE WORTH THE GAIN MR ALTMAN HOWEVER SAID I DO THINK THAT ONE FORM OR ANOTHER OF A NEW TAX ON CONSUMPTION IS IN ORDER MENTIONING AS POSSIBILITIES ENERGY TAXES A NEW VALUEADDED OR NATIONAL SALES TAX OR A NEW TAX ON WHAT INDIVIDUALS SPEND AS OPPOSED TO WHAT THEY EARN HE EMPHASIZED THE IMPORTANCE OF DESIGNING SUCH A TAX TO LIMIT THE HARM TO THE POOR AND SUGGESTED SUCH A TAX MIGHT BE LINKED TO SOME NATIONAL OBJECTIVE SUCH AS EXTENDING HEALTH CARE TO THE UNINSURED AT HIS HEARING MR ALTMAN WASN'T ASKED ABOUT HIS PERSONAL FINANCES OR HIS PLANS FOR COPING WITH POTENTIAL CONFLICTS OF INTEREST IN A DISCLOSURE STATEMENT MR ALTMAN AND HIS IMMEDIATE FAMILY LISTED FINANCIAL ASSETS WORTH MORE THAN 20 MILLION INCLUDING PUBLICLY TRADED SECURITIES REAL ESTATE AND STAKES IN SEVERAL LEVERAGED BUYOUTS IN WHICH HIS INVESTMENT BANK BLACKSTONE GROUP HAS BEEN A PARTICIPANT MR ALTMAN VALUED HIS RANCH IN WYOMING AT MORE THAN 1 MILLION HE ALSO REPORTED A LOAN OF MORE THAN 1 MILLION FOR INVESTMENT FINANCING FROM CHASE MANHATTAN BANK AT THE PRIME INTEREST RATE MR ALTMAN'S PROSPECTIVE NEW BOSS TREASURY SECRETARYDESIGNATE LLOYD BENTSEN ALSO IS A MULTIMILLIONAIRE HIS FINANCIAL DISCLOSURE FORM LESS PRECISE THAN MR ALTMAN'S SHOWS HIS ASSETS ARE WORTH AT LEAST 56 MILLION AND PROBABLY MUCH MORE IN 1988 MR BENTSEN SAID HIS NET WORTH EXCEEDED 10 MILLION SINCE THEN HE HAS INHERITED A SUBSTANTIAL ESTATE FROM HIS LATE FATHER DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9301140054 930114 INTEL REPORTS SURGE IN PROFIT FOR 4TH QUARTER MORE THAN TWOFOLD INCREASE IN NET INCOME PROPELS FIRM'S STOCK 8 HIGHER BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP SENT THE CLEAREST SIGNAL YET THAT IT IS CONSOLIDATING ITS HUGELY PROFITABLE HEGEMONY OVER MUCH OF THE PERSONAL COMPUTER INDUSTRY REPORTING A SURGE IN FOURTHQUARTER EARNINGS AND PROFIT MARGIN THAT SPARKED AN 8 JUMP IN ITS STOCK PRICE THE SANTA CLARA CALIF SEMICONDUCTOR MAKER SAID NET INCOME FOR THE PERIOD ENDED DEC 26 MORE THAN DOUBLED TO A RECORD 4286 MILLION OR 197 A SHARE FROM 1887 MILLION OR 90 CENTS A SHARE A YEAR EARLIER REVENUE GREW 54 TO A RECORD 186 BILLION FROM 121 BILLION INTEL PREDICTED LAST MONTH THAT ITS PROFIT FOR THE QUARTER WOULD BE A BIG SURPRISE IGNITING A RUN UP IN ITS STOCK PRICE THAT HAS DRIVEN ITS MARKET CAPITALIZATION TO A LEVEL NEAR THAT OF INTERNATIONAL BUSINESS MACHINES CORP BUT THE RESULTS ANNOUNCED YESTERDAY WERE WELL ABOVE ANALYSTS' RECENTLY RECAST PROJECTIONS OF 150 A SHARE TO 180 A SHARE INTEL'S SHARES CLOSED AT 110125 A SHARE UP 8125 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY INTEL'S STOCK IS UP 25 SO FAR THIS YEAR THE RESULTS WERE UNBELIEVABLE SAID ANALYST JOHN MARREN OF ALEX BROWN & SONS THEY ARE THE CLEAR LEADER IN THE SEMICONDUCTOR INDUSTRY AND THEY ARE NOW BECOMING THE BELLWETHER TECHNOLOGY STOCK THAT ALONG WITH MICROSOFT CORP IS TAKING OVER FROM IBM INTEL'S BOOMING SALES HAVE RESULTED FROM ITS MONOPOLISTIC HOLD OVER THE MARKET FOR HIGHEND 486 MICROPROCESSORS WHICH ARE USED AS THE BRAINS OF PERSONAL COMPUTERS AND FROM PRICECUTTING AMONG COMPUTER MANUFACTURERS THE WORLDWIDE DOMINANCE OF THAT CHIP HELPED MAKE INTEL THE WORLD'S NO 1 SEMICONDUCTOR MAKER IN 1992 THE FIRST TIME A US COMPANY HAS HELD THAT SPOT SINCE 1984 INTEL CONTINUES TO BE THE SOLE SUPPLIER TO COMPUTER MAKERS OF THE 486 CHIPS WHICH CARRY HIGH MARGINS INTEL SAID THAT ITS FOURTHQUARTER GROSS MARGINS WERE 61 UP FROM 52 IN THE YEAREARLIER PERIOD WHILE ITS NET MARGINS ROSE TO 23 FROM 16 INTEL'S MAIN CHALLENGERS ADVANCED MICRO DEVICES INC AND CYRIX CORP ARE CRANKING OUT CLONES OF INTEL'S OLDER 386 CHIPS WHICH HAVE LOWER MARGINS AND ARE USED IN MODELS OF COMPUTERS THAT IN SOME CASES ARE ALREADY BEGINNING TO BE PHASED OUT BY MANUFACTURERS CYRIX AND AMD BOTH PLAN TO SELL 486 CLONES THIS YEAR BUT NEITHER HAS BEGUN VOLUME PRODUCTION OF SUCH A KNOCKOFF YET FALLING PERSONAL COMPUTER PRICES HAVE ALSO SERVED TO FUEL DEMAND FOR INTEL'S CHIPS MAKING POWERFUL 486BASED COMPUTERS THAT SOLD A YEAR AGO FOR TWICE THEIR CURRENT PRICES SEEM LIKE BARGAINS IN A CLASSIC UNDERSTATEMENT ANDREW GROVE INTEL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID OUR BUSINESS IS IN EXCELLENT SHAPE AS THE NEW YEAR BEGINS WITH STRONG DEMAND ACROSS MOST OF OUR PRODUCT LINES AND INTEL DOESN'T APPEAR TO BE IN DANGER OF RELINQUISHING ITS GRASP ANY TIME SOON IT EXPECTS TO BEGIN SELLING ITS NEXT GENERATION CHIP DUBBED PENTIUM WITHIN THE NEXT TWO MONTHS AND THEREBY MAINTAIN ITS LEAD OVER ITS COMPETITORS THE CHIP IS EXPECTED TO PROVIDE A CHANCE FOR PERSONALCOMPUTER MANUFACTURERS AND OTHER COMPANIES TO BUILD WORKSTATIONS MINICOMPUTERS AND MAINFRAMES THAT WILL COMPETE WITH MORE TRADITIONAL MAKERS OF SUCH MACHINES SUCH AS SUN MICROSYSTEMS INC DIGITAL EQUIPMENT CORP AND IBM AND THE 27 BILLION INTEL PLANS TO SPEND IN RESEARCH DEVELOPMENT AND CAPITAL SPENDING THIS YEAR WILL MAKE IT HARD FOR RIVALS TO MATCH ITS PACE OF INNOVATION AND ECONOMIES OF SCALE INTEL ALSO HAS A STREAM OF PRODUCTS IN ITS PIPELINE FOR MARKETS SUCH AS VIDEO SOFTWARE AND NETWORKING DEMAND FOR INTEL'S CHIPS WILL CONTINUE AS LONG AS COMPUTER PRICES CONTINUE TO FALL ACCORDING TO ANDREW KESSLER AN ANALYST WITH MORGAN STANLEY IF PRICES STABILIZE DEMAND COULD SLOW HE SAID BUT THE PENTIUM CHIP WILL HELP THE COMPANY CONTINUE TO EXPAND ITS PRODUCT LINE AND SERVE AS THE NEXT STEP TO FASTER MORE POWERFUL COMPUTERS INTEL CONTINUES TO STEP AWAY FROM THE COMPETITION HE SAID DURING THE QUARTER INTEL SHIPPED NEARLY FIVE MILLION 486 CHIPS A COMPANY SPOKESMAN SAID ECLIPSING THE TOTAL OF TWO MILLION 486 CHIPS SHIPPED DURING THE PRIOR THREE YEARS INTEL'S 486 SALES HAVE OVERTAKEN ITS SALES OF ITS 386 CHIPS HE SAID THE SHIFT AMONG PC BUYERS TO THE 486 CHIP HAS OCCURRED MUCH FASTER THAN EXPECTED AND SOME DESKTOP MAKERS HAVE ABANDONED THE 386 BECAUSE OF SHARP PRICE CUTS ON THE MORE ADVANCED MODEL ORDERS FOR CHIPS CALLED FLASH MEMORIES WHICH CAN BE ERASED AND REPROGRAMMED MORE EASILY THAN OTHER TYPES OF MEMORY DEVICES WERE THROUGH THE ROOF ALTHOUGH THE COMPANY WAS CONSTRAINED IN OUR ABILITY TO ACCEPT AND SHIP ALL ORDERS THE SPOKESMAN SAID STILL INTEL ADMITTED LAST MONTH THAT SHIPMENTS OF CERTAIN VERSIONS OF ITS FLASH CHIPS WILL BE DELAYED BY AS MUCH AS A YEAR BECAUSE OF MANUFACTURING GLITCHES AND ADVISED CUSTOMERS TO SEEK OTHER SUPPLIERS FOR ALL OF 1992 INTEL'S PROFIT GREW 30 TO 107 BILLION OR 497 A SHARE FROM 8186 MILLION OR 392 A SHARE REVENUE ROSE 22 TO 584 BILLION FROM 478 BILLION 9301140053 930114 BUSINESS BRIEF ZALE CORP ACCORD ON REORGANIZATION IS REACHED WITH CREDITORS ZALE CORP DALLAS SAID IT REACHED AGREEMENT ON A COMPROMISE REORGANIZATION PLAN WITH CREDITORS OF ITS ZALE CREDIT CORP UNIT WHICH COULD LEAD TO ITS EMERGENCE FROM BANKRUPTCYCOURT PROTECTION TERMS WEREN'T DISCLOSED ZALE HAS NOW REACHED AGREEMENT WITH ALL ITS CREDITORS ON THE REORGANIZATION PLAN ANDREAS LUDWIG ZALE'S CHIEF FINANCIAL OFFICER SAID THE JEWELRY RETAILER IRONED OUT A LINGERING DISPUTE OVER 285 MILLION OF NOTES AND FINANCING HELD BY THE CREDITORS OF THE CREDIT UNIT REPRESENTATIVES OF CREDITORS COULDN'T BE REACHED FOR COMMENT ZALE CORP WHICH IS OWNED BY PEOPLES JEWELLERS LTD OF TORONTO AND SWAROVSKI INTERNATIONAL HOLDING AG OF SWITZERLAND HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION SINCE LAST JANUARY THE PLAN MUST STILL BE APPROVED BY US BANKRUPTCY JUDGE STEVEN FELSENTHAL THE COMPANY AND ITS CREDITORS HAVE SCHEDULED A CONFERENCE WITH THE JUDGE FOR TODAY TO DETERMINE HOW TO PROCEED MR LUDWIG SAID 9301140052 930114 BUSINESS BRIEF PROCTER & GAMBLE CO POLYETHYLENE BOTTLE IS MADE ENTIRELY OF RECYCLED PLASTIC PROCTER & GAMBLE CO SAID IT DEVELOPED THE FIRST HIGHDENSITY POLYETHYLENE BOTTLE THAT'S MADE ENTIRELY OUT OF RECYCLED PLASTIC DISCARDED BY CONSUMERS THE NEW BOTTLE DEVELOPED WITH MANUFACTURER OWENSBROCKWAY WILL BE USED TO PACKAGE P&G'S ULTRA DOWNY FABRIC SOFTENER STARTING NEXT MONTH PREVIOUSLY THE BOTTLE WAS MADE OF ONLY 75 RECYCLED PLASTIC THE BOTTLES AREN'T BIODEGRADABLE NOTHING BIODEGRADES IN A LANDFILL A P&G SPOKESWOMAN SAID BUT SEVERAL CITIES RECYCLE THEM INCLUDING SACRAMENTO CALIF SEATTLE OFFICIALS EVEN PICK UP THE BOTTLES AS PART OF THEIR CURBSIDE RECYCLING PROGRAM ACTUALLY CINCINNATIBASED P&G IS HOPING THAT CONSUMERS HANG ON TO THE BOTTLES AND REFILL THEM WITH ULTRA DOWNY WHICH THE COMPANY SELLS IN PAPERBASED LAMINATED CARTONS 9301140051 930114 LEISURE & ARTS THE MOBILE GUIDE HANGING TEN ON CHINA BEACH BY JOSEPH KAHN DA NANG VIETNAM CIRCUMSTANCES BEYOND THE CONTROL OF SURF CLUB OFFICERS FORCED THE TEMPORARY SUSPENSION OF CLUB ACTIVITIES ON CHINA BEACH IN THE MID1970S BUT NOW ALL BETS ARE ON AGAIN A SECOND GENERATION OF SURFERS HAS ARRIVED IN THE COUNTRY THOSE TOO YOUNG TO REMEMBER THE TET OFFENSIVE OR FOR THAT MATTER THE VIET CONG ARE HANGING TEN IN THE 8FOOT SWELLS OF THE SOUTH CHINA SEA TO THE GIGGLES AND CHEERS OF SEVERAL THOUSAND VIETNAMESE WHO GATHERED TO WATCH A SPECTACLE NOT SEEN HERE FOR 20 YEARS AN AMERICANLED GROUP RECENTLY STAGED A TWOWEEK SURFIN' SAFARI COMPETITION INTENDED IN PART TO HEAL THE WOUNDS OF THE VIETNAM WAR AND TO BRING TOURISTS TO THIS PROVINCIAL CITY IN CENTRAL VIETNAM SURFING MAY BE THE ANTITHESIS OF POLITICS BUT THE TEENAGE CALIFORNIANS WHO ROLLED ONTO THE CAREFULLY DEMINED CHINA BEACH HAD A STATEMENT TO MAKE THEY FLAUNTED THEIR PECS BROWNED SKIN AND SURFER'S DRAWL AS IF THE US MILITARY HAD NEVER EVACUATED AND SAIGON HAD NEVER FALLEN MEMBERS SURFED IN THE SHADOW OF THE HUGE DEFUNCT US MILITARY BASE THE REMNANTS OF WHICH STRETCH ALONG DA NANG'S SHORELINE AS THEIR WAXED BOARDS SLID AND BUCKED LANDWARD THE AMERICAN VISITORS COULD SEE BOMBPROOF HANGARS HULKING FUEL TANKS AND EVEN A FEW UH1B HELICOPTER GUNSHIPS AGING GRACEFULLY ON TOP OF A WEEDSTREWN TARMAC IT WAS HERE THAT US MARINES FIRST LANDED IN 1965 AND IT WAS HERE THAT TROOPS LIKED TO COME FOR R&R THEIR PURSUIT OF THE PERFECT WAVE WAS IMMORTALIZED IN THE 1979 FRANCIS FORD COPPOLA WAR MOVIE APOCALYPSE NOW AND MOST FAMOUSLY IN THE 198891 ABC TELEVISION SERIES CHINA BEACH WHICH TOOK ITS NAME FROM THE SITE VETERANS BRAGGED FOR YEARS THAT CHINA BEACH WAVES MATCHED THE FINEST IN THE WORLD AND THEY HARBORED FOND MEMORIES OF THE SURF CLUB AMID DARKER MEMORIES OF WAR SO IT WAS INEVITABLE THAT WHEN BRUCE HOPPING A 77YEAROLD CALIFORNIA SPORTS PATRON SUCCEEDED IN HIS EIGHTYEAR QUEST TO BRING SURFING BACK TO DA NANG HE MADE SURE TO OBTAIN THE RIGHTS TO THE OFFICIAL SURF CLUB LOGO HE PUT TOGETHER A YOUNG TEAM FROM SAN DIEGO AND SAN CLEMENTE CALIF AND SET OFF ON HIS MISSION TO CUT THROUGH ALL THIS POLITICAL MUCK AND MAKE THE US AND VIETNAM FRATERNAL PARTNERS THE IRONY OF THE VENUE FOR THIS EFFORT AT RECONCILIATION WAS NOT LOST ON EITHER SIDE THE VIETNAMESE INSISTED ON CALLING THE SURFING COMPETITION NON NUOC THE LOCAL NAME FOR THE BEACH COMPETITORS WHO WANDERED TOO FAR UP SHORE OR ONTO THE ABANDONED BASE MET WITH AK47TOTING VIETNAMESE SOLDIERS WHO MADE IT CLEAR THAT AT LEAST SOME PARTS OF DA NANG WILL REMAIN CLOSED TO JOINT VENTURES BUT FOR THE MOST PART THE VIETNAMESE HAPPILY SEIZED ON SURFING AS A WAY TO DEMONSTRATE THAT THEY ARE THOROUGHLY LESS HUNG UP ABOUT THE WAR THAN MANY OLDER AMERICANS ARE IN THE PAST 50 YEARS THEY ALSO DEFEATED THE JAPANESE THE FRENCH THE CAMBODIANS AND THE CHINESE AND SEEM CONFUSED AS TO WHY AMERICANS ARE SUCH BAD SPORTS WE'RE THE ONES CARRYING THE GRUDGES AND REFIGHTING THE WAR ON TV SAID JIM MACHADO THE MANAGER OF THE US NATIONAL SURFING TEAM WHO COACHED THE US ENTRIES IN THE COMPETITION HERE THEY'RE NOT STUCK IN THE MUD LIKE WE ARE THE VIETNAMESE JUST WANT TO HAVE FUN FUN IT SEEMED WAS IN PLENTIFUL SUPPLY A TYPHOON KICKED UP THE SURF TO WORLDCLASS LEVELS IN LATE DECEMBER CREATING WAVES THAT SURPASSED THOSE IN SURFING'S SPIRITUAL HOME OF CALIFORNIA POLLUTIONFREE AIR TEMPERATE WATERS AND THE PLEASANTLY LETHARGIC POPULATION CONVINCED THE SURFERS THAT THEY HAD DISCOVERED A PRISTINE BALI UNSULLIED BY HOTELS CONCRETE AND JAPANESE HONEYMOONERS THE BEACH ITSELF IS LITERALLY UNTOUCHED EXCEPT FOR THE BASKETLIKE CIRCULAR BOATS FISHERMEN USE TO SCOOP UP CUTTLEFISH IN THE SHALLOWS EACH COMPETITOR BROUGHT ALONG AN EXTRA BOARD TO DONATE TO LOCAL HIGH SCHOOL STUDENTS IN WHAT WAS DESCRIBED AS A JOHNNY APPLESEED MISSION AT FIRST THE VIETNAMESE TRIED RIDING THE BOARDS IN GROUPS OF SIX OR EIGHT BUT AFTER TWO WEEKS OF COACHING A FEW HAD ATTAINED A KIND OF WOBBLY PROFICIENCY GOING SOLO ONE VIETNAMESE BOY DECKED OUT IN A UNIVERSITY OF COLORADO TSHIRT WITH A YANKEES BASEBALL CAP FITTED BACKWARD ON HIS HEAD REFLECTED THE GENERAL MOOD AS HE REACTED TO A PRACTICE SESSION IN HIS PERSONAL VERSION OF SURFER LINGO YOU THE INSANE WAVES ARE VERY VERY COOL AMERICA VERY COOL VERY BEAUTIFUL BOTH SIDES MAY HAVE HAD PEACE AND RECONCILIATION ON THEIR MINDS BUT THE AMERICANS WERE ALSO LIVING THE SURFER'S DREAM THE NEVERENDING QUEST FOR THAT MYSTICAL SPIRITUAL EPIC WAVE MADE IMMORTAL IN BRUCE BROWN'S 1966 FILM THE ENDLESS SUMMER WE HAVE A MYTHOLOGY ABOUT THE FREE SOUL WHO FINDS HIS OWN SPOT LIKE THE MOUNTAIN CLIMBER BEING THE FIRST TO THE TOP MACHADO SAID THERE AREN'T THAT MANY MOUNTAINS LEFT AND THERE AREN'T THAT MANY SANDY BEACHES DID THEY FIND THEIR NIRVANA FROM THE TALK AROUND THE DINNER TABLE ON THE FINAL NIGHT IN DA NANG IT SEEMS THEY CAME CLOSE WE BRAVELY SURFED WHERE NO MAN HAS SURFED BEFORE AT LEAST FOR A LONG TIME SAID JOSH VESQUE A 16YEAROLD FROM SAN CLEMENTE THIS IS A MUCH MORE MELLOW SCENE THAN CALIFORNIA SAID PHONG NGUYEN A VIETNAMESEAMERICAN WHO LEFT SAIGON WITH HIS FAMILY IN 1982 YOU'VE ALSO GOT A BIGGER SURFING WINDOW AND TUBULAR WAVES MACHADO SAID THE VIETNAMESE COULDN'T HAVE PLANNED A BETTER CURTAIN RAISER ON THE WIDELY PREDICTED LIFTING OF THE US EMBARGO ON TRADE WITH VIETNAM WHERE SURFERS GO TOURISTS FOLLOW WE DISCOVERED BALI IN THE '70S COOK ISLANDS IN THE '80S YOU NAME IT WE WERE THEIR FIRST HE SAID WE'RE CUTTINGEDGE AND COOL EVERYONE DREAMS ABOUT DOING WHAT WE DID THESE TWO WEEKS OTHER SURFERS DO ANYWAY THE CONTEST WAS A WARMUP FOR THE WORLD JUNIOR CHAMPIONSHIPS EXPECTED TO DRAW COMPETITORS FROM 30 COUNTRIES TO BE HELD ON CHINA BEACH IN OCTOBER HOPPING THE SEPTUAGENARIAN WHO HEADS A SPORTS PROMOTION GROUP CALLED THE KALOS KAGATHOS FOUNDATION AND WORKED ON THE ORGANIZATION OF BOTH EVENTS SAID HE BELIEVES THE CHINA BEACH COMPETITION WILL FIND A PERMANENT SPOT ON THE SURFING WORLD TOUR THAT BEGINS EACH SPRING IN FRANCE AND ENDS IN HAWAII IN DECEMBER HE ALSO PLANS TO TAKE ADVANTAGE OF THE ANTICIPATED TOURIST RAMPAGE ALL ALONG VIETNAM'S 1800MILE COASTLINE BY BUILDING A MODEL CONSERVATIONMINDED RESORT FROM DA NANG'S PERSPECTIVE THE TOURIST RUSH CAN'T COME SOON ENOUGH EVEN SOME FORMER VIET CONG GUERRILLAS WATCHING THE ACTION HAD ONLY SMILES FOR AN AMERICAN RETURN BUT BACK AT HOME SOME MIAPOW ADVOCATES HAD STRONG OBJECTIONS HOPPING SAID THAT HE AND OTHER PARTICIPANTS IN THE CONTEST RECEIVED HATE MAIL AND THREATENING PHONE CALLS FROM MEMBERS OF THE INFLUENTIAL LOBBY ONE SUCH LETTER BLASTED SNOTNOSED KIDS FROM CALIFORNIA FOR UNDERMINING US PRESSURE ON VIETNAM UNRECONSTRUCTED HAWKS MIGHT HAVE TAKEN COMFORT FROM THE SURF COMPETITION HERE WAS A VIETNAM CONFLICT THE AMERICANS INDISPUTABLY WON DAZZLING THEIR INDONESIAN AND SPECIALLY TRAINED VIETNAMESE RIVALS WITH THEIR DEXTERITY UNDER THE CRITICAL CURL OF THE WAVES WHEN THE FINAL SCORE WAS TALLIED THE CHINA BEACH SURF CLUB HAD WON BY A LANDSLIDE MR KAHN IS THE ASIA CORRESPONDENT FOR THE DALLAS MORNING NEWS 9301140050 930114 BUSINESS BRIEF FAMOUS RESTAURANTS INC REORGANIZATION PLAN IS FILED WITH A BANKRUPTCY COURT FAMOUS RESTAURANTS INC WHICH HAS BEEN OPERATING UNDER BANKRUPTCYLAW PROTECTION SINCE SEPTEMBER SAID IT FILED A REORGANIZATION PLAN WITH A FEDERAL BANKRUPTCY COURT IN ARIZONA UNDER TERMS OF THE PLAN THE SCOTTSDALE ARIZ COMPANY'S PRINCIPAL LENDER HELLER FINANCIAL INC WOULD BECOME THE NEW OWNER HELLER WHICH HELD 46 MILLION IN SECURED DEBT WHEN THE BANKRUPTCY PETITION WAS FILED IS A CHICAGO UNIT OF FUJI BANK LTD STOCKHOLDERS AND SUBORDINATED DEBENTURE HOLDERS WOULD BE WIPED OUT BY THE PLAN FAMOUS RESTAURANTS SAID AT THE TIME THE COMPANY FILED ITS PETITION IT HAD ABOUT SIX MILLION COMMON SHARES AND 650000 IN SUBORDINATED DEBENTURES THE TOTAL POTENTIAL PAYOUT TO UNSECURED CREDITORS UNDER THE PLAN WOULD BE CAPPED AT 825000 THE COMPANY OPERATES 27 GARCIA'S MEXICAN RESTAURANTS AND NINE CASITA LUPITA MEXICAN RESTAURANTS 9301140049 930114 TECHNOLOGY & MEDICINE GENEACTIVATING THERAPY GETS BOOST FROM STUDY ON TREATING BLOOD DISORDERS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL THE IDEA THAT DRUGS MIGHT SAFELY SWITCH ON NONWORKING GENES RECEIVED A BOOST FROM RESEARCHERS DEVELOPING TREATMENTS FOR A GROUP OF GENETIC BLOOD DISORDERS THE BLOOD DISORDERS INVOLVE RED BLOOD CELLS' FAILURE TO PRODUCE HEMOGLOBIN OR PRODUCTION OF A DEFECTIVE FORM OF THE OXYGENCARRYING PROTEIN THE DISORDERS INCLUDE SICKLECELL ANEMIA WHICH MOSTLY AFFLICTS AFRICANAMERICANS AND COOLEY'S ANEMIA WHICH MOSTLY AFFLICTS ITALIANS GREEKS AND OTHER MEDITERRANEAN GROUPS BLOOD SPECIALISTS HAVE BEEN TRYING FOR A DECADE TO FIND A NEW WAY TO TREAT THESE DISORDERS BY TURNING ON A HEMOGLOBIN GENE THAT ORDINARILY QUITS WORKING AFTER BIRTH THE FEW DRUGS THAT HAVE PULLED OFF THIS TRICK HAVE BEEN TOO TOXIC FOR THE LIFETIME USE THAT THE ANEMIC PATIENTS WOULD REQUIRE NOW A TEAM OF RESEARCHERS IN OAKLAND CALIF REPORTED PRELIMINARY RESULTS IN WHICH A FOOD ADDITIVE A FATTYACID CALLED ARGININE BUTYRATE APPEARED TO STIMULATE THE NONWORKING GENE TO BEGIN MAKING NORMAL HEMOGLOBIN IN SIX PATIENTS THEIR REPORT APPEARS IN THIS WEEK'S ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE MAIN PROBLEM IS THAT THE DRUG MUST BE GIVEN INTRAVENOUSLY BUT ONE OF THE RESEARCHERS SAID AN ORAL FORM OF THE DRUG IS BEING DEVELOPED THE TWO ANEMIAS ARE IDEAL CANDIDATES FOR GENE ACTIVATION THERAPY BOTH INVOLVE DEFECTS IN HEMOGLOBIN THE IRONCONTAINING PROTEIN THAT RED BLOOD CELLS USE TO CARRY OXYGEN TO BODY TISSUES OF THE TWO GENES CAPABLE OF MAKING HEMOGLOBIN ONE FUNCTIONS ONLY DURING FETAL LIFE WHEN THE FETUS MUST PULL OXYGENCARRYING BLOOD ACROSS THE PLACENTA THIS FETAL GENE TURNS OFF AFTER BIRTH AND A SECOND ADULT GENE TAKES OVER IN COOLEY'S ANEMIA ALSO KNOWN AS BETATHALASSEMIA THE DEFECTIVE ADULT GENE PRODUCES LITTLE OR NO HEMOGLOBIN THOSE BORN WITH THE DEFECT MUST RECEIVE REPEATED BLOOD TRANSFUSIONS TO SURVIVE IF THE FETAL GENE COULD BE REAWAKENED AND PUT BACK TO WORK THE PATIENT'S RED CELLS WITH A NEW ENDOWMENT OF PERFECTLY FUNCTIONAL FETAL HEMOGLOBIN WOULD ENLARGE REDDEN AND REGAIN VIABILITY EXPLAINED H FRANKLIN BUNN IN AN EDITORIAL COMMENTING ON THE NEW RESEARCH DR BUNN WHO IS AT THE BRIGHAM AND WOMEN'S HOSPITAL IN BOSTON IS ALSO WORKING ON GENESWITCHING TREATMENTS FOR THE BLOOD DISORDERS IN SICKLECELL ANEMIA THE ADULT HEMOGLOBIN GENE FUNCTIONS BUT IS DEFECTIVE AND THE DEFECTIVE HEMOGLOBIN IT PRODUCES LEADS TO A RIGID SICKLESHAPED RED BLOOD CELL THIS SICKLING EFFECT DOESN'T OCCUR IF FETAL HEMOGLOBIN IS ALSO PRESENT IN THE LATEST RESEARCH ALL SIX PATIENTS THREE WITH COOLEY'S ANEMIA AND THREE WITH SICKLECELL ANEMIA EXPERIENCED INCREASES IN FETAL HEMOGLOBIN PRODUCTION FOLLOWING INFUSIONS OF AN ULTRAPURE FORM OF ARGININE BUTYRATE REPORTED A TEAM OF RESEARCHERS HEADED BY SUSAN P PERRINE OF CHILDREN'S HOSPITAL OAKLAND RESEARCH INSTITUTE IN OAKLAND CALIF THE TEAM INCLUDED SCIENTISTS FROM A HALF DOZEN MEDICAL CENTERS IN THE US AND CANADA INCREASES IN THE OUTPUT OF FETAL HEMOGLOBIN RANGED FROM 6 TO 45 ABOVE PRETREATMENT LEVELS THE RESEARCHERS REPORTED IN TWO PATIENTS THE PRODUCTION OF FETAL HEMOGLOBIN CONTINUED FOR A MONTH AFTER TREATMENT STOPPED SIDE EFFECTS WERE ALMOST NONEXISTENT THEY SAID THE RESULTS ALTHOUGH HIGHLY PRELIMINARY INDICATE THAT THE ADMINISTRATION OF ARGININE BUTYRATE REPRESENTS A NOVEL AND POTENTIALLY EFFECTIVE THERAPY FOR THESE PREVALENT MOLECULAR DISORDERS THE REPORT DECLARED IN A TELEPHONE INTERVIEW DR PERRINE SAID SHE HAD TO COMPOUND THE ARGININE BUTYRATE USED IN THE TEST THE TEAM SHE SAID HAS SINCE DEVELOPED SOME VARIATIONS OF THE FATTY ACID THAT COULD BE GIVEN ORALLY THE RESEARCHERS HOWEVER ARE LOOKING FOR A DRUG MANUFACTURER WHO WOULD TAKE OVER DEVELOPMENT OF THE DRUGS AND TAKE THEM THROUGH THE US FOOD AND DRUG ADMINISTRATION PROCESSES FOR MARKETING A SECOND REPORT ON TREATING THE SAME DISORDERS WITH A DIFFERENT SET OF DRUGS WAS PUBLISHED IN THE SAME ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE THE RESEARCH INVOLVED ALTERNATING THE USE OF TWO DRUGS PREVIOUSLY TESTED IN THE BLOOD DISORDERS FOUR PATIENTS WHO HAD BEEN RECEIVING THE DRUG HYDROXYUREA TO INCREASE THEIR PRODUCTION OF FETAL HEMOGLOBIN HAD THE GENETICALLY ENGINEERED VERSION OF EPO ADDED TO THEIR THERAPY EPO OR ERYTHROPOIETIN STIMULATES THE MANUFACTURE OF RED BLOOD CELLS THE HOPE WAS THAT THE EPO WOULD PERMIT THE PATIENTS TO RECEIVE LESS OF THE HYDROXYUREA AN ANTICANCER DRUG MADE BY BRISTOLMYERS SQUIBB CO THAT CAN HAVE SIDE EFFECTS THAT LIMIT ITS USE THE TESTS INDICATED THAT THE EPO DID BOOST THE PROPORTION OF FETAL HEMOGLOBIN IN RED BLOOD CELLS BY 48 ACCORDING TO THE REPORT BY A MULTICENTER TEAM LED BY GRIFFIN P RODGERS OF THE FEDERAL NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES ONE PROBLEM WITH THE THERAPY IS THE HIGH COST OF THE GENETICALLY ENGINEERED EPO WHICH IS PRODUCED BY AMGEN INC OF THOUSAND OAKS CALIF 9301140048 930114 CHRISTOPHER CALLS FOR NEW DIPLOMACY' WITH AN EMPHASIS ON AVERTING CRISES BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO REVISE BOTH US FOREIGN POLICY AND THE STATE DEPARTMENT THAT MANAGES IT SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER TOLD THE SENATE FOREIGN RELATIONS COMMITTEE AS HIS CONFIRMATION HEARINGS OPENED THE LOS ANGELES LAWYER SAID HIS PRIORITIES WILL INCLUDE WORKING HARDER TO AVERT CRISES RATHER THAN MERELY MANAGING THEM WHEN THEY ARISE FIGHTING MORE SYSTEMATICALLY TO HALT THE SPREAD OF NUCLEAR ARMS AND OTHER WEAPONS OF MASS DESTRUCTION AND LAUNCHING A HIGHPROFILE EFFORT TO HAVE US DIPLOMATS PROMOTE US BUSINESS INTERESTS OVERSEAS WE CANNOT AFFORD TO CAREEN FROM CRISIS TO CRISIS MR CHRISTOPHER TOLD THE COMMITTEE WE MUST HAVE A NEW DIPLOMACY THAT SEEKS TO ANTICIPATE AND PREVENT CRISES HE SUGGESTED THAT TODAY'S PROBLEMS IN BOSNIA IRAQ AND SOMALIA MIGHT BE LESS SEVERE IF THE BUSH ADMINISTRATION HAD SHOWN MORE FORESIGHT BUT IN GENERAL HE PRAISED THE PRESIDENT'S CURRENT ACTIONS IN ALL THREE PLACES AND STRESSED THAT CLINTON REPRESENTATIVES ARE WORKING CLOSELY WITH THE ADMINISTRATION ON THESE ISSUES HE GAVE SPECIAL EMPHASIS TO IRAQ PROMISING THAT HE TOO WILL INSIST ON IRAQ'S UNCONDITIONAL COMPLIANCE WITH ALL UNITED NATIONS RESOLUTIONS ON THE GULF REGION MR CHRISTOPHER WHO WAS THE STATE DEPARTMENT'S NO 2 OFFICIAL IN THE CARTER ADMINISTRATION ALSO PROMISED TO DO MORE FOR US BUSINESS INTERESTS ABROAD IN AN ERA IN WHICH ECONOMIC COMPETITION IS ECLIPSING IDEOLOGICAL RIVALRY IT IS TIME FOR DIPLOMACY THAT SEEKS TO ASSURE ACCESS FOR US BUSINESSES TO EXPANDING GLOBAL MARKETS THE LONGTIME CORPORATE LAWYER INSISTED FOR EXAMPLE HE PROMISED TO HAVE MORE US EMBASSY OFFICIALS SEEKING NEW MARKETS FOR US PRODUCTS AND HELPING COMPANIES ENTER THEM AT PRESENT HE COMPLAINED THERE IS USUALLY ONLY A SINGLE US DIPLOMAT WITH SUCH DUTIES FOR EACH COUNTRY EVEN FOR RUSSIA A NATION OF 150 MILLION PEOPLE HE SAID THERE IS A LONG TRADITION IN THE FOREIGN SERVICE OF PLAYING DOWN BUSINESS INTERESTS BUT VOWED THIS WON'T CONTINUE HE ALSO PROMISED OTHER CHANGES NOTING THAT THE STATE DEPARTMENT REMAINS ORGANIZED MUCH AS IT WAS IN 1977 WHEN HE JOINED THE CARTER ADMINISTRATION IN THE MIDST OF THE COLD WAR IN ADDITION TO STRENGTHENING THE ROLE OF THE SENIOR ECONOMICS UNDERSECRETARY HE SAID HE'LL CREATE A TOP JOB TO ADMINISTER GLOBAL ISSUES THAT CUT ACROSS NATIONAL BOUNDARIES SUCH AS REFUGEES WEAPONS PROLIFERATION DRUGS AND TERRORISM THESE AREAS ARE NOW DIVIDED AMONG SEVERAL BUREAUS MR CHRISTOPHER ALSO INDICATED A SURPRISING WILLINGNESS TO USE FORCE WHEN OTHER MEANS FAIL TO RESOLVE INTERNATIONAL PROBLEMS PREFERABLY WITH THE HELP OF OTHER NATIONS BUT ALONE IF NECESSARY AS ONE WHOSE LEGAL CAREER HAS REVOLVED AROUND NEGOTIATIONS THE 67YEAROLD MR CHRISTOPHER STRESSED THAT DISPUTE RESOLUTION AND ARBITRATION WILL BE ESSENTIAL PARTS OF THE CLINTON TEAM'S DIPLOMACY BUT HE ADDED AS I REFLECT ON OUR EXPERIENCE IN THE COLD WAR IT IS CLEAR THAT OUR SUCCESS FLOWED FROM OUR ABILITY TO HARNESS DIPLOMACY AND POWER TOGETHER IN THIS CONTEXT HE SAID HE FAVORS CREATING A UN RAPID REACTION FORCE INCLUDING US TROOPS WHICH COULD RESPOND QUICKLY TO CRISES LIKE THE ONE IN BOSNIA BUT HE STRESSED HE WON'T RULE OUT UNILATERAL DISCREET AND CAREFUL USE OF AMERICAN FORCE IN CERTAIN CIRCUMSTANCES MOST COMMITTEE QUESTIONING WAS GENTLE AND DIDN'T PROBE DEEPLY INTO MR CHRISTOPHER'S CAREFUL GENERALITIES ABOUT FUTURE POLICY SEVERAL SENATORS MADE CLEAR THEY EXPECT HIM TO BE CONFIRMED WITHOUT DIFFICULTY RESPONDING TO NEWS REPORTS THAT HE WAS GIVEN MEMOS IN 1968 DESCRIBING ARMY SURVEILLANCE OF ANTIWAR AND CIVILRIGHTS GROUPS MR CHRISTOPHER SAID THAT HE STOOD BY HIS 1977 TESTIMONY TO CONGRESS AT THAT TIME HE SAID HE WAS UNAWARE OF ANY COVERT ARMY SURVEILLANCE SENATORS DIDN'T PRESS HIM ON THE MATTER MR CHRISTOPHER'S TESTIMONY CAME AS A HOUSE TASK FORCE RELEASED ITS 968PAGE REPORT DISMISSING ALLEGATIONS THAT REAGAN CAMPAIGN OFFICIALS CONSPIRED TO FRUSTRATE THE CARTER ADMINISTRATION'S EFFORTS TO FREE US HOSTAGES IN IRAN IN 1980 MR CHRISTOPHER WAS THEN THE CHIEF NEGOTIATOR FOR THE STATE DEPARTMENT AND THE HOUSE REPORT PROVIDES NEW DETAILS REGARDING HIS TALKS IN THE FALL OF 1980 WITH AN IRANIAN REPRESENTATIVE SADEGH TABATABAI THESE DISCUSSIONS INCLUDED BARGAINING OVER WHAT ARMS WOULD BE RELEASED TO IRAN IF THE HOSTAGES WERE FREED AND IN OCTOBER 1980 PRESIDENT CARTER OFFERED A LIST OF SPARE PARTS AND MILITARY EQUIPMENT THAT HAD BEEN PREVIOUSLY PURCHASED BY THE SHAH OF IRAN BUT HELD FROZEN BY THE US BEFORE SHIPMENT THE REPORT CITES A STILLCLASSIFIED CHRISTOPHER CABLE DESCRIBING A 230 MILLION PACKAGE INCLUDING 80 MILLION IN CASH GENERATED FROM THE LIQUIDATION OF SOME OF THE ARMS IN ABOUT THE ONLY SOUR NOTE AT THE CHRISTOPHER HEARING YESTERDAY SEN JESSE HELMS R NC SUGGESTED THAT MR CHRISTOPHER OFFERED AN ARMSFORHOSTAGES DEAL MUCH LIKE THE SECRET ONE MADE LATER BY THE REAGAN ADMINISTRATION AND WHICH DEMOCRATS HAVE CRITICIZED STRONGLY MR CHRISTOPHER DENIED THIS HE SAID HIS TALKS INVOLVED ONLY THE POSSIBLE RELEASE OF FROZEN IRANIAN ASSETS IF THE AMERICANS WERE RELEASED AND NOT ANY SECRET DEALS NO OTHER COMMITTEE MEMBER PRESSED THE POINT CITING US INTELLIGENCE ESTIMATES THE REPORT SAID THAT SLIGHTLY MORE THAN 180 MILLION IN MILITARYRELATED EQUIPMENT WAS SHIPPED BY ISRAEL TO TEHRAN FROM 1980 THROUGH EARLY 1983 AND THE TASK FORCE FOUND NO DOCUMENTATION AUTHORIZING THE SALE OF USMADE ARMS TO IRAN THROUGH ISRAEL IN THIS PERIOD REPORTS OF ALLEGED OR ACTUAL ARMS SALES FROM ISRAEL TO IRAN PEAKED FROM 1982 TO 1983 ACCORDING TO DOCUMENTS CITED BY INVESTIGATORS AND THE EVIDENCE CONTRADICTS NEWS REPORTS IN 1991 THAT HUGE SHIPMENTS OF AS MUCH AS 2 BILLION WERE SECRETLY AUTHORIZED BY THE US DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9301140047 930114 BUSINESS BRIEF BANK OF MONTREAL TRUST UNIT IS ESTABLISHED WITH 196 BILLION IN ASSETS BANK OF MONTREAL SAID IT SET UP A TRUST UNIT IN CANADA WITH 25 BILLION CANADIAN DOLLARS US196 BILLION IN ASSETS UNDER ADMINISTRATION ESTABLISHING A FOOTHOLD IN THE NATION'S RECENTLY DEREGULATED TRUST INDUSTRY THE UNIT CALLED TRUST CO OF BANK OF MONTREAL WILL PROVIDE SERVICES IN PERSONAL TAXATION FINANCIAL ANALYSIS ASSET MANAGEMENT RETIREMENT COUNSELING TRUST AND ESTATE PLANNING AND ADMINISTRATION THE BANK SAID IT ALSO WILL PROVIDE TRUST SERVICES TO CORPORATE INSTITUTIONAL AND PENSION CUSTOMERS DEREGULATION OF CANADA'S FINANCIAL SERVICES INDUSTRY LAST SUMMER OPENED THE DOOR TO BANKS OWNING TRUST COMPANIES A RELATIONSHIP THAT HAS EXISTED IN THE US FOR MANY YEARS BANK OF MONTREAL SAID ITS NEW TRUST UNIT MEASURED BY ASSETS UNDER ADMINISTRATION IS THE LARGEST STEP YET BY A CANADIAN BANK IN SETTING UP A TRUST SUBSIDIARY 9301140046 930114 HEARD ON THE STREET ADVICE TO THOSE WAITING FOR RECOVERY TO LIFT MARKET DON'T HOLD YOUR BREATH BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL AT LAST THE ECONOMY SEEMS TO BE GATHERING STEAM YET THE STOCK MARKET IS CHURNING IN PLACE WHAT GIVES THE TRUTH IS BY THE TIME THE ECONOMY REALLY STARTS COOKING THE STOCK MARKET OFTEN HAS CALMED DOWN SO IF ECONOMISTS ARE RIGHT IN PREDICTING THE ECONOMY WILL GROW ABOUT 3 THIS YEAR THAT'S GREAT NEWS FOR THE NATION BUT NOT NECESSARILY FOR THE STOCK MARKET IT'S NOT AS EARLY IN THE RECOVERY AS MOST PEOPLE THINK SAYS STEVEN LEUTHOLD CHAIRMAN OF LEUTHOLD GROUP A MONEYMANAGEMENT AND MARKETINFORMATION FIRM IN MINNEAPOLIS THE BULK OF THE STOCK MARKET'S GAINS COME IN THE LATE STAGES OF RECESSIONS AND THE EARLY STAGES OF RECOVERIES SAYS NED DAVIS PRESIDENT OF NED DAVIS RESEARCH IN NOKOMIS FLA HE THINKS THE STOCK MARKET ALREADY HAS SQUEEZED MOST OF THE JUICE FROM THE RECOVERY THAT'S CURRENTLY IN ITS SECOND YEAR AND HE MAY BE RIGHT JUDGING BY DATA COMPILED BY CAROL COLES PRESIDENT OF MITCHELL & CO WHO RECENTLY STUDIED MARKET PERFORMANCE FOLLOWING THE END OF RECESSIONS LOOKING AT THE AFTERMATH OF SIX RECESSIONS SINCE 1960 SHE FOUND THAT STOCK PRICES USUALLY RISE STRONGLY IN THE FIRST TWO QUARTERS OF A RECOVERY THEN LEVEL OFF ACCORDING TO THE NATIONAL BUREAU OF ECONOMIC RESEARCH THE OFFICIAL ARBITER OF BUSINESS CYCLES THE LATEST RECESSION ENDED IN MARCH 1991 TAKING THAT AS GOSPEL THE NATION IS BEGINNING THE EIGHTH QUARTER OF RECOVERY ALBEIT A MORE ANEMIC ONE THAN USUAL THE AVERAGE ECONOMIC EXPANSION IS ABOUT THREE YEARS MR LEUTHOLD SAYS SINCE 1900 ABOUT 35 OF THE EXPANSIONS HAVE BEEN TWO YEARS OR LESS PEOPLE'S PERCEPTION IS WARPED BY THE LENGTH OF THE LAST EXPANSION MORE THAN EIGHT YEARS INVESTORS GENERALLY LOOK AHEAD SIX MONTHS OR MORE THAT'S WHY THEY USUALLY DRIVE STOCK PRICES HIGHER IN THE WANING MONTHS OF A RECESSION AND IN THE EARLY OFTEN SLUGGISH PHASES OF RECOVERIES WHILE THEY ARE IN THE TUNNEL OF DARKNESS THEY THINK THEY SEE THE LIGHT AT THE END OF THE TUNNEL AND THEY START JUMPING IN SAYS YALE HIRSCH AUTHOR OF STOCK TRADER'S ALMANAC HOW CLOSELY ARE STOCKS TODAY FOLLOWING THE USUAL RECOVERY SCRIPT IN THE SUMMER AND FALL OF 1991 RIGHT AFTER THE OFFICIAL ENDING POINT OF THE LATEST RECESSION STOCKS CHUGGED ALONG SLOWLY PERHAPS BECAUSE THE RECOVERY ITSELF STARTED OFF SO HALFHEARTEDLY BUT NINE MONTHS INTO THE RECOVERY STOCKS HAD RISEN 111 NOT FAR FROM THE TYPICAL FIGURE OF 127 SINCE THEN STOCKS HAVE BEEN TRENDING PRETTY CLOSE TO THE HISTORICAL PATTERN AS OUTLINED BY MS COLES IF THE PATTERN CONTINUES TO HOLD STOCKHOLDERS CAN EXPECT A FLAT TO SLIGHTLYDOWN MARKET FOR THE NEAR FUTURE OF COURSE EVERY RECOVERY IS DIFFERENT THIS ONE SO FAR HAS BEEN LESS ROBUST THAN TYPICAL OPTIMISTS SAY THAT THIS MEANS THE ECONOMY AND HENCE THE STOCK MARKET COULD STILL HAVE SOME FIREPOWER IN RESERVE CORPORATE EARNINGS ARE GOING TO BE UP DIVIDENDS WILL INCREASE AT A FASTER PACE AND INFLATION WILL HELP OUT THOSE THAT ARE DEBTBURDENED SAYS FREDRIC E RUSSELL HEAD OF FREDRIC E RUSSELL LNVESTMENT MANAGEMENT IN TULSA OKLA EQUALLY IMPORTANT HE SAYS AN ECONOMIC RECOVERY WILL REVITALIZE CONSUMER AND CORPORATE PSYCHOLOGY ENCOURAGING PEOPLE AND COMPANIES TO OPEN THEIR WALLETS IN HIS VIEW THE BEST IS YET TO COME FOR BOTH THE ECONOMY AND THE STOCK MARKET I PERCEIVE THAT THIS RECOVERY WILL BE VERY STRONG HE SAYS COSTS IN SMALL MEDIUMSIZED AND LARGE CORPORATIONS HAVE BEEN REDUCED SO DRAMATICALLY THAT ANY MODEST INCREASE IN REVENUES CAN LEAD TO VERY DRAMATIC IMPROVEMENTS IN PROFITS THE BEST THING A RECOVERY DOES FOR THE STOCK MARKET IS FATTEN UP CORPORATE EARNINGS AFTER ALL PROFITS ARE THE LINCHPIN ON WHICH STOCK VALUATIONS ARE BASED SAYS DONALD PETERS A MONEYMANAGER WITH GEEWAX TERKER & CO IN PHILADELPHIA YET MARKETWATCHERS CONTINUE TO BE STRUCK BY THE FACT THAT CORPORATE PROFITS AND STOCK PRICES CAN BE OUT OF SYNC FOR LONG PERIODS MR HIRSCH OF STOCK TRADER'S ALMANAC SAYS THE DOW JONES INDUSTRIAL AVERAGE NEARLY TRIPLED FROM 1950 THROUGH 1960 EVEN THOUGH CORPORATE EARNINGS ENDED THAT DECADE A MERE 4 ABOVE WHERE THEY BEGAN FROM 1975 THROUGH 1986 THE INDUSTRIAL AVERAGE MORE THAN DOUBLED WHILE EARNINGS ROSE ONLY ABOUT 50 CONVERSELY EARNINGS TRIPLED FROM 1961 THROUGH 1974 YET THE DOW JONES INDUSTRIALS ACHIEVED NO NET GAIN DURING THAT LONG SPAN GIVEN THAT NO ONE HAS A CRYSTAL BALL SAYS FLORIDA'S NED DAVIS ONE IS BETTER OFF ASSUMING THAT STOCKS WILL ZIG WHEN THE ECONOMY HAS JUST ZAGGED IF ONE DID HAVE A CRYSTAL BALL IT MIGHT BE VERY HELPFUL TO KNOW THAT THE DOW JONES INDUSTRIALS HAVE RISEN AN AVERAGE OF 165 A YEAR DURING 12MONTH PERIODS SINCE 1950 WHEN ECONOMIC GROWTH WAS BOOMING AT 6 OR BETTER MOREOVER MR DAVIS SAYS STOCKS ROSE ABOUT 84 A YEAR WHEN THE ECONOMY WAS NORMAL 2 TO 599 GROWTH 49 A YEAR WHEN IT WAS SLOW FROM A 2 DECLINE TO GROWTH OF 199 AND ONLY 02 A YEAR WHEN IT WAS POOR WITH GROSS DOMESTIC PRODUCT FALLING AT A RATE WORSE THAN 2 BUT IN FACT ALL AN INVESTOR KNOWS FOR SURE IS WHAT THE PAST FOUR QUARTERS' GROWTH FIGURE HAS BEEN ON THAT BASIS IT'S BEST TO BE BULLISH WHEN THE ECONOMY HAS BEEN CRUMMY AND BEARISH WHEN IT HAS DONE WELL WHEN TRAILING FOURQUARTER GROWTH HAS BEEN POOR STOCKS HAVE ACHIEVED AVERAGE 12MONTH GAINS OF 32 MR DAVIS SAYS WHEN TRAILING GROWTH WAS SLOW STOCKS HAVE GAINED ABOUT 12 THEY HAVE GAINED 55 WHEN TRAILING GROWTH WAS NORMAL AND ONLY 28 A YEAR WHEN TRAILING GROWTH WAS BOOMING RIGHT NOW MR DAVIS SAYS BOTH TRAILING GROWTH 22 AND FORECAST 1993 GROWTH ABOUT 3 ARE IN THE NORMAL RANGE BOTH HE AND MR LEUTHOLD CURRENTLY RATE THE ECONOMY AS NEUTRAL FOR THE MARKET THE MARKET'S HAD AN INCREDIBLE RUN SAYS DAVID BOSTIAN AN ECONOMIST WITH HERZOG HEINE GEDULD THE DOW JONES INDUSTRIAL AVERAGE WAS UP 1000 POINTS BEFORE THE ECONOMY REALLY STARTED TO SHOW STRENGTH HE THINKS THE REASON IS THAT THE MARKET IS INCREASINGLY DOMINATED BY BIG INSTITUTIONS WHICH ARE PLACING THEIR BETS FURTHER AND FURTHER INTO THE FUTURE SO MR BOSTIAN THINKS A DOWNTURN OF ABOUT 10 IS LIKELY IN THE NEXT FEW MONTHS PARTICULARLY IN OVERTHECOUNTER STOCKS THAT HAVE BEEN ON A VERTICAL TEAR TO THE UPSIDE BUT HE IS A SUPERBULL LONG TERM WITH INFLATION LOW AND PROFITS IMPROVING HE SAYS STOCKS WILL RECOVER THEIR LOST GROUND REACH NEW HIGHS BY YEAR END AND KEEP SOARING FOR A COUPLE OF YEARS 9301140045 930114 LEISURE & ARTS FILM MADONNA ADDS MURDER TO HER VICES BY JULIE SALAMON FIFTY YEARS AGO JEAN HARLOW FIRST GOT NOTICED BY PLAYING COARSE PLATINUMBLOND SEXPOTS HER CAREER WASN'T GOING ANYWHERE SPECTACULAR HOWEVER UNTIL METRO GOLDWYN MAYER PUT HER UNDER CONTRACT AND BEGAN PROMOTING HER AS A STAR THE STUDIO STILL CAPITALIZED ON HER SEXINESS BUT LET HER PLAY IT FOR LAUGHS IN FACT PICTURES SUCH AS RED DUST WERE ALL ABOUT SEX EVEN IF YOU NEVER ACTUALLY SAW ANY BUT YOU CAN WATCH THOSE MOVIES AGAIN AND AGAIN BECAUSE THEY AND THE ACTORS PLAYING IN THEM ARE SO GOOD AND SO MUCH FUN TO WATCH IN SOME WAYS IT MIGHT SEEM THAT NOTHING HAS CHANGED MGM DOESN'T MAKE MANY MOVIES THESE DAYS BUT IT IS STILL DISTRIBUTING PICTURES THAT ARE ALL ABOUT SEX AND STILL PROMOTING YET ANOTHER PLATINUMBLOND STAR THE MAIN DIFFERENCE BETWEEN THEN AND NOW IS THAT THE ONLY THING YOU CAN POSSIBLY REMEMBER ABOUT BODY OF EVIDENCE THE LATEST MGM RELEASE IS THE SEX THIS PICTURE IS SO RAUNCHY THAT WHEN IT WAS OVER I WISHED THE MGM LION COULD HAVE PUT HIS PAW OVER HIS FACE SO AT LEAST HE WOULDN'T HAVE SEEN HOW LOW HIS STUDIO HAS FALLEN ACTUALLY THE PLOT OF BODY OF EVIDENCE SOUNDS LIKE A SATIRE THE KIND OF THING ANITA GENTLEMEN PREFER BLONDES LOOS MIGHT HAVE WRITTEN IF SHE'D BEEN BORN A HALFCENTURY LATER AND WAS WRITING COURTROOM COMEDY IT'S THE STORY OF A WOMAN WHO'S JUST TOO SEXY HER SPECIFIC CRIME SHE'S ACCUSED OF USING HER GREAT SEXUAL POWERS TO KILL OLD MEN WITH HEART CONDITIONS OR AS THE MOVIE PROSECUTOR PLAYED BY JOE MANTEGNA PUTS IT YOU WILL SEE SHE IS NOT ONLY THE DEFENDANT SHE IS THE MURDER WEAPON ITSELF THE MOVIE IS SHOT WITH SOBER GRACE AS THOUGH DIRECTOR ULI EDEL REALLY THOUGHT HE WAS MAKING A MORE MODERN VERSION OF ANATOMY OF A MURDER PERHAPS SOMETHING WAS LOST IN TRANSLATION MR EDEL'S FIRST LANGUAGE IS GERMAN AND HIS FIRST ENGLISHLANGUAGE PICTURE LAST EXIT TO BROOKLYN HAD A DISTINCTLY GERMANIC TONE OR PERHAPS HE SAW THE TERRIFIC CAMP POTENTIAL IN THIS TAWDRY STUFF AND THAT'S WHY HE HIRED MADONNA TO PLAY THE LEAD BUT WHEN MADONNA PUTS ON THE KIND OF SHIMMERY WHITE DRESS HARLOW USED TO WEAR THERE'S NO POINT WASTING TIME IMAGINING WHAT HAPPENS WHEN THE DRESS COMES OFF YOU KNOW THAT MADONNA WILL SOON GIVE AN EXCRUCIATINGLY VIVID DEMONSTRATION AND THAT YOU WILL SEE NOTHING SHE HASN'T ALREADY SHOWN US OTHERWISE WHAT CAN ONE SAY ABOUT MADONNA THAT HASN'T ALREADY BEEN SAID IF SHE WERE A BETTER ACTRESS SHE MIGHT HAVE HAD SOME FUN WITH SOME OF THE MOVIE'S MORE DELICIOUSLY SILLY DIALOGUE HERE SHE IS PLAYING A WOMAN WHOSE ROUGH SEXUAL PREFERENCES AREN'T A SECRET AND SHE CAN'T EVEN PUT AN AMUSING SPIN ON AN OBVIOUSLY COY LINE SUCH AS THEY'VE TAKEN SOMETHING GREAT BETWEEN TWO PEOPLE IN LOVE AND TURNED IT INTO SOMETHING DIRTY WILLEM DAFOE PLAYS THE DEFENSE LAWYER WHO ENDS UP HAVING SEX WITH HIS CLIENT ONE SUSPECTS THAT HE DIDN'T TAKE THIS JOB FOR THE ACTING CHALLENGE THOUGH HE PUTS ON A GAME PERFORMANCE THOUGH BODY OF EVIDENCE HASN'T BEEN DECLARED BY THE RATINGS BOARD TO BE FOR ADULTS ONLY IT HAS AN R RATING IT IS STILL WHAT WE USED TO CALL A PRETTY DIRTY MOVIE MR DAFOE MAY HAVE TO GO BACK TO PLAYING CHRIST FIGURES AS PENANCE FOR WHAT HE'S FILMED DOING HERE ONLY MR MANTEGNA AS THE PROSECUTOR APPROACHES HIS PART WITH THE KIND OF SKEPTICISM THE MOVIE SORELY NEEDS HE PUTS HIS LEER ON AT THE BEGINNING AND WEARS IT LIKE PROTECTION FROM THE SMARMINESS AROUND HIM ITS TITLE NOTWITHSTANDING PASSION FISH IS NOT A DIRTY MOVIE IT IS A VERY NICE MOVIE WRITTEN AND DIRECTED BY JOHN SAYLES A FILM MAKER WHO HASN'T YET ABANDONED THE IDEA THAT CHARACTERS AND GOOD TALK MATTER IN MOVIES THANKS TO THE CINEMATOGRAPHY BY ROGER DEAKINS AND TO THE LOUISIANA BAYOU IT IS ALSO AN EXCEPTIONALLY GOODLOOKING MOVIE YOU COULD CALL THIS PICTURE A COMINGOFMIDDLEAGE PICTURE THE STORY OF A SUCCESSFUL SOAPOPERA ACTRESS LEFT CRIPPLED BY AN ACCIDENT SHE'S HIT BY A TAXI IN NEW YORK CITY HAVING BEEN FORCED BY CIRCUMSTANCE TO RECONSIDER LIFE SHE GOES BACK HOME TO LOUISIANA TO DO IT MR SAYLES IS AN ASTUTE WRITER OF CHARACTERS AND HE HAS CREATED SOME VERY GOOD ONES FOR THIS PERCEPTIVE AND ENTERTAINING PICTURE IF HE WERE A SOUTHERN WRITER HIS CHARACTERS MIGHT BE UNBEARABLY GOTHIC MAYALICE THE SOAP STAR WAS ORPHANED YOUNG DRINKS TOO MUCH AND HAS RETURNED TO A HOUSE FULL OF HARD MEMORIES SHE HIRES A BLACK NURSE WITH A MUDDLED PAST OF HER OWN TO TAKE CARE OF HER MR SAYLES FILTERS ALL THIS THROUGH HIS OWN PARTICULAR URBAN WIT AND HAS COME UP WITH A FRESH KIND OF WOMAN'S PICTURE HE ALLOWS MAYALICE AND THE NURSE A TOUGHNESS AND PRIVACY USUALLY RESERVED FOR MALEBONDING MOVIES AND HIS ACTRESSES MARY MCDONNELL AND ALFRE WOODARD REWARD HIM AND US WITH REALLY INTERESTING PERFORMANCES THE MEN ARE GOOD TOO ESPECIALLY DAVID STRATHAIRN AND VONDIE CURTISHALL AS THE ROMANTIC INTERESTS WHICH ARE REMARKABLY UNPREDICTABLE AND IT'S ALWAYS GREAT TO HEAR A ZYDECO SCORE VIDEO TIP THE OTHER REASON TO SEE RED DUST IS CLARK GABLE FENDING OFF BOTH JEAN HARLOW AND MARY ASTOR WHAT COULD BE BETTER THAN WATCHING GABLE YELL AT HARLOW I'M NOT A ONEWOMAN MAN I NEVER HAVE BEEN AND I NEVER WILL BE AND THEN WATCHING HER PROVE HIM WRONG 9301140044 930114 BUSINESS BRIEF WILLIAMS COS FIRM SEES 1STPERIOD GAIN ON ROYALTY TRUST OFFERING WILLIAMS COS TULSA OKLA SAID IT EXPECTS A GAIN OF 57 CENTS A SHARE IN THE FIRST QUARTER BECAUSE OF AN OFFERING OF 52 MILLION UNITS OF WILLIAMS COAL SEAM GAS ROYALTY TRUST IN THE YEAREARLIER PERIOD WILLIAMS HAD NET INCOME OF 395 MILLION OR 85 CENTS A SHARE ON REVENUE OF 5832 MILLION THE 1992 FIRSTQUARTER NET INCLUDED A PRETAX GAIN OF 146 MILLION NET PROCEEDS OF THE OFFERING ARE EXPECTED TO BE ABOUT 95 MILLION OR ABOUT 20 A UNIT AND WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING FUNDING THE COMPANY'S CAPITAL PROGRAM THE ENERGY AND TELECOMMUNICATIONS COMPANY SAID THE TRUST WILL OWN DEFINED NET PROFIT INTERESTS IN DEVELOPED COAL SEAM GAS PROPERTIES IN THE SAN JUAN BASIN OF NEW MEXICO AND COLORADO CONVEYED TO THE TRUST BY WILLIAMS PRODUCTION CO A UNIT OF WILLIAMS COS TRUST UNITS WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL WTU 9301140043 930114 BUSINESS BRIEF BURLINGTON RESOURCES INC FOURTHQUARTER NET INCOME INCREASED TO 1132 MILLION BURLINGTON RESOURCES INC SEATTLE MORE THAN DOUBLED ITS FOURTHQUARTER PROFIT REFLECTING RECORD NATURAL GAS AND CRUDE OIL SALES AND A BOOST OF 24 CENTS A SHARE FROM THE COMPANY'S 1992 SALE OF ITS INTERESTS IN PLUM CREEK TIMBER CO FOURTHQUARTER NET REACHED 1132 MILLION OR 86 CENTS A SHARE UP FROM LAST YEAR'S 491 MILLION OR 37 CENTS A SHARE DISCONTINUED OPERATIONS ACCOUNTED FOR 169 MILLION OR 13 CENTS A SHARE OF THE MOST RECENT PERIOD'S PROFITS COMPARED WITH 221 MILLION OR 17 CENTS A SHARE IN LAST YEAR'S FOURTH QUARTER REVENUE ROSE ABOUT 12 TO 3372 MILLION FROM 2998 MILLION IN THE FULL YEAR THE NATURAL RESOURCES COMPANY POSTED NET OF 2578 MILLION OR 195 A SHARE UP ABOUT 25 FROM 2054 MILLION OR 154 A SHARE IN 1991 DISCONTINUED OPERATIONS ACCOUNTED FOR 681 MILLION OR 51 CENTS A SHARE OF 1992 PROFITS COMPARED WITH 105 MILLION OR 79 CENTS A SHARE OF THE PRIOR YEAR'S RESULTS REVENUE ROSE 10 TO 114 BILLION FROM 104 BILLION BURLINGTON'S BOARD RAISED THE QUARTERLY DIVIDEND 10 TO 1375 CENTS A SHARE FROM 125 CENTS PAYABLE APRIL 1 TO SHAREHOLDERS OF RECORD MARCH 12 9301140042 930114 SENATE IMPEACHMENT TRIAL PROCEDURES CAN'T BE CHALLENGED HIGH COURT RULES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE CAN'T BE SECONDGUESSED ON ITS PROCEDURES FOR PUTTING IMPEACHED FEDERAL OFFICIALS ON TRIAL THE SUPREME COURT SAID IN A DECISION UPHOLDING THE REMOVAL OF US DISTRICT JUDGE WALTER NIXON THE NIXON CASE HAD RAISED QUESTIONS NOT ONLY ABOUT THE FAIRNESS OF SENATE EFFORTS TO STREAMLINE IMPEACHMENT TRIALS BUT ALSO ABOUT THE RELATIONSHIP BETWEEN THE LEGISLATIVE AND JUDICIAL BRANCHES IN A 72 RULING THE HIGH COURT SAID THE CONSTITUTION DOESN'T GIVE THE JUDICIARY ANY AUTHORITY TO REVIEW THE SENATE'S IMPEACHMENTTRIAL PROCEDURES UNDER THE CONSTITUTION THE HOUSE MAY ADOPT ARTICLES OF IMPEACHMENT ALLEGING MISCONDUCT BY A FEDERAL OFFICIAL THE SENATE HAS AUTHORITY TO CONDUCT A TRIAL ON THOSE CHARGES AND IF AN OFFICIAL IS CONVICTED TO REMOVE HIM FROM OFFICE AND DISQUALIFY HIM FROM HOLDING ANY OFFICE IN THE FUTURE MR NIXON A FORMER MISSISSIPPI JUDGE CONVICTED IN 1986 OF LYING TO A GRAND JURY IN A BRIBERY PROBE CHALLENGED THE PROCESS THE SENATE FOLLOWED THREE YEARS LATER TO OUST HIM FROM HIS LIFETENURED JOB SPECIFICALLY MR NIXON COMPLAINED THAT A COMMITTEE OF JUST 12 SENATORS RATHER THAN THE FULL BODY HAD HEARD THE EVIDENCE AGAINST HIM MORE THAN THE REQUIRED TWOTHIRDS MAJORITY OF THE SENATE SUBSEQUENTLY VOTED TO CONVICT AND REMOVE HIM AFFIRMING TWO LOWER COURT DECISIONS THE SUPREME COURT REJECTED MR NIXON'S CHALLENGE WRITING FOR THE MAJORITY CHIEF JUSTICE WILLIAM REHNQUIST STRESSED THE PASSAGE IN ARTICLE I OF THE CONSTITUTION THAT STATES THAT THE SENATE SHALL HAVE THE SOLE POWER TO TRY ALL IMPEACHMENTS THE WORD SOLE JUSTICE REHNQUIST WROTE INDICATES THAT THIS AUTHORITY IS REPOSED IN THE SENATE AND NOWHERE ELSE IN OTHER WORDS A PERSON WHO HAS BEEN CONVICTED BY THE SENATE MAY NOT SEEK REVIEW IN THE COURTS THE DECISION WILL AFFECT THE CASE OF REP ALCEE HASTINGS D FLA A FORMER FEDERAL JUDGE WHO SUCCESSFULLY CHALLENGED HIS IMPEACHMENT CONVICTION ON THE SAME GROUNDS AS MR NIXON A DECISION BY A FEDERAL JUDGE IN WASHINGTON THAT MR HASTINGS'S IMPEACHMENT CONVICTION WAS INVALID WILL NOW BE THROWN OUT BUT BECAUSE THE SENATE ONLY REMOVED MR HASTINGS AS A JUDGE AND DIDN'T BAN HIM FROM HOLDING OTHER FEDERAL OFFICES HE MAY REMAIN IN THE HOUSE ACCORDING TO GEOFFREY MILLER A CONSTITUTIONAL LAW PROFESSOR AT THE UNIVERSITY OF CHICAGO IN YESTERDAY'S RULING JUSTICE REHNQUIST LABELED QUITE MEANINGFUL THE FACT THAT NEITHER THE FRAMERS OF THE CONSTITUTION NOR LATE 18TH CENTURY LEGAL COMMENTATORS EVER ALLUDED TO THE POSSIBILITY OF JUDICIAL REVIEW OF IMPEACHMENT TRIALS IN THE CASE OF IMPEACHED JUDGES HE CONTINUED ALLOWING JUDICIAL REVIEW WOULD UNDERMINE THE CONSTITUTIONAL SCHEME OF CHECKS AND BALANCES AMONG THE BRANCHES IN THE CASE OF A PRESIDENTIAL IMPEACHMENT PERMITTING APPEALS IN THE COURTS COULD CREATE MONTHS OR YEARS OF POLITICAL CHAOS JUSTICE REHNQUIST ASSERTED JUSTICES JOHN PAUL STEVENS SANDRA DAY O'CONNOR ANTONIN SCALIA ANTHONY KENNEDY AND CLARENCE THOMAS JOINED THE MAJORITY OPINION JUSTICE DAVID SOUTER JOINED ONLY THE RESULT EMPHASIZING IN A SEPARATE OPINION THAT THE COURT MUST CONSIDER WHETHER IT MAY REVIEW SENATE IMPEACHMENTTRIAL PROCEDURES ON A CASEBYCASE BASIS JUSTICE BYRON WHITE JOINED BY JUSTICE HARRY BLACKMUN CONCURRED SEPARATELY ASSERTING THAT THE JUDICIARY DOES HAVE THE AUTHORITY TO CONSIDER CHALLENGES SUCH AS MR NIXON'S BUT THAT IN HIS CASE THE SENATE ACTED PROPERLY NIXON VS US 9301140041 930114 BUSINESS BRIEF PRINTRONIX INC CALIFORNIA CONCERN SWINGS TO PROFIT IN THIRD QUARTER PRINTRONIX INC AN IRVINE CALIF MAKER OF COMPUTER PRINTERS POSTED FISCAL THIRDQUARTER NET INCOME OF 603000 OR 19 CENTS A SHARE REBOUNDING FROM A NET LOSS OF 17 MILLION OR 57 CENTS A SHARE IN THE YEARAGO THIRD QUARTER SALES ROSE 9 TO 238 MILLION FROM 218 MILLION PRINTRONIX SAID ANALYSTS HAD EXPECTED THE COMPANY TO BREAK EVEN IN THE QUARTER WHICH ENDED DEC 25 PRINTRONIX ATTRIBUTED ITS PERFORMANCE TO STRONG SALES OF ITS NEW MATRIX PRINTERS AND TO LOWER OPERATING COSTS RELATED TO A RECENT RESTRUCTURING 9301140040 930114 BUSINESS BRIEF SYMBOLICS INC COMPANY CUTS WORK FORCE CONSIDERS BANKRUPTCY FILING SYMBOLICS INC A COMPUTER AND SOFTWARE COMPANY SAID IT IS CUTTING ITS WORK FORCE 36 AND IS CONSIDERING SEEKING FILING FOR BANKRUPTCY COURT PROTECTION THE CONCORD MASS COMPANY WHICH HAD EMPLOYED 110 WORKERS HAS SEEN ITS REVENUE DROP SHARPLY IN RECENT YEARS AS THE COMPUTER MARKET SHIFTED FROM THE HIGHPRICED PROPRIETARY SYSTEMS IT ONCE SOLD TO CHEAPER STANDARDIZED COMPUTER SYSTEMS IT NOW MAKES SOFTWARE AND SPECIALIZED ARTIFICIAL INTELLIGENCE CIRCUIT BOARDS TO BE INSTALLED ON OTHER COMPUTERS SYMBOLICS SAID IT IS EXPERIENCING LIQUIDITY DIFFICULTIES AND NEEDS TO OBTAIN ADDITIONAL FINANCING IN THE NEAR TERM TO FUND ITS OPERATIONS IN ADDITION TO A BANKRUPTCYCOURT FILING IT IS CONSIDERING A SALE OF THE COMPANY LAST WEEK SYMBOLICS SAID THAT REVENUE FELL 29 IN THE FISCAL SECOND QUARTER ENDED DEC 31 FROM THE FIRST QUARTER'S 48 MILLION IN REVENUE 9301140039 930114 BUSINESS BRIEF HILTON HOTELS CORP RIGHT GRANTED TO DEVELOP MISSOURI RIVERBOAT CASINO HILTON HOTELS CORP BEVERLY HILLS CALIF WON THE EXCLUSIVE RIGHT TO DEVELOP A 75 MILLION RIVERBOAT CASINO ON THE MISSOURI RIVER IN KANSAS CITY MO THE CITY'S PORT AUTHORITY WHICH WILL OVERSEE THE RIVERBOAT GRANTED HILTON THE RIGHT TO BUILD A 2000PASSENGER FLOATING CASINO THAT WILL INCLUDE 1500 SLOT MACHINES AND 59 TABLE GAMES KANSAS CITY RESIDENTS WILL VOTE ON THE PROJECT IN FEBRUARY AND THE CASINO COULD BE OPEN AS EARLY AS THE SUMMER OF 1994 SUBJECT TO LICENSING APPROVAL THE HOTEL AND CASINO COMPANY BEAT OUT PROMUS COS OF MEMPHIS TENN AND THE BOYD GROUP A LAS VEGAS CLOSELY HELD CASINO OPERATOR IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY HILTON ROSE 2375 TO 4825 WHILE PROMUS DROPPED 125 CENTS TO 12125 HILTON WILL OWN A 90 INTEREST IN THE PROJECT WITH LOCAL MINORITY INVESTORS HOLDING THE REMAINDER THE PROJECT IS EXPECTED TO GENERATE NEARLY 1000 DIRECT JOBS AND MAY GENERATE ABOUT 130 MILLION IN RENT TAXES AND OTHER MONEYS IN THE FIRST FIVE YEARS OF OPERATION THE COMPANY SAID 9301140038 930114 MARKETING & MEDIA ADVERTISING ACCOUNTING FIRM SEEKS BIG PLAY DURING BROADCAST OF SUPER BOWL BY KEVIN GOLDMAN ACCOUNTANTS FOR YEARS THE WORD HAS CONJURED UP IMAGES OF DULL DRY MEN WEARING GREEN EYESHADES WHO SLUMPED OVER THEIR DESKS PORING OVER BALANCE SHEETS AND FOR YEARS THE BIG ACCOUNTING FIRMS HAVE DONE LITTLE TO CHALLENGE THAT VIEW NOW THOUGH ONE OF THE SOCALLED BIG SIX ACCOUNTING FIRMS IS POISED TO BREAK AWAY FROM THE PACK IN AN EXPENSIVE AND AGGRESSIVE WAY THE STAID BUTTONEDDOWN NEW YORK FIRM OF COOPERS & LYBRAND IS IN GLITZY LOS ANGELES THIS WEEK TO PRODUCE ITS FIRST TELEVISION COMMERCIAL THE OPENING SALVO IN A MULTIYEAR TELEVISION AND PRINT BLITZ THE AD BUDGET WILL BE 10 MILLION THIS YEAR ALONE AND THE 30SECOND SPOT WILL PREMIERE TWICE DURING THE SUPER BOWL LATER THIS MONTH AT A HEFTY PRICE TAG OF ALMOST 2 MILLION THE MOVE COULD SET OFF A PITCHED ADVERTISING BATTLE AMONG THE BIG SIX WHICH ALSO INCLUDE ARTHUR ANDERSEN ERNST & YOUNG DELOITTE & TOUCHE KPMG PEAT MARWICK AND PRICE WATERHOUSE IF ONE FIRM IS GOING IN WITH AGGRESSIVE ADVERTISING MARKETING EXPERTS SAY IT ISN'T LIKELY THE OTHERS WILL SIT PATIENTLY ON THE SIDELINES COOPERS & LYBRAND'S STRATEGY MARKS QUITE A REVERSAL FOR A MULTIBILLIONDOLLAR PROFESSION THAT HAS PREFERRED TO STAY IN THE BACKGROUND AFTER ALL FOR YEARS THE MOST PUBLICITY AN ACCOUNTING FIRM EVER RECEIVED WAS EVERY APRIL WHEN PRICE WATERHOUSE REPRESENTATIVES PRESENTED THE ENVELOPES AT THE ACADEMY AWARDS IN MORE RECENT TIMES BIGTIME ACCOUNTING FIRMS HAVE BEEN BETTER KNOWN FOR FAILING TO DETECT THE HUGE WEAKNESSES IN THE SAVINGS AND LOAN INDUSTRY THAT RESULTED IN AN INDUSTRYWIDE COLLAPSE COSTING TAXPAYERS HUNDREDS OF BILLIONS OF DOLLARS CLEARLY COOPERS & LYBRAND WANTS TO CHANGE ALL THAT WE WANT TO CREATE A PLATFORM THAT WILL PROPEL THE COMPANY INTO THE FUTURE EUGENE M FREEDMEN CHAIRMAN SAYS EXECUTIVES AT THE ACCOUNTING FIRM SAY THE OBJECTIVE OF THE ADVERTISING CAMPAIGN IS TO REPOSITION THE COMPANY TO INCLUDE NOT ONLY ACCOUNTING BUT ALSO TO PROMOTE OTHER PROFESSIONAL SERVICES SUCH AS STRATEGIC PLANNING AND CONSULTING TO BOLSTER A CLIENT'S BOTTOM LINE CRITICS QUESTION THE COOPERS STRATEGY OF ADVERTISING ON THE SUPER BOWL THOUGH AFTER ALL BUYING TWO 30SECOND SPOTS SIPHONS OFF ALMOST ONEFIFTH OF THE COMPANY'S ENTIRE 1993 AD BUDGET AND WHILE UP TO 100 MILLION PEOPLE IN THE US MAY SEE THE GAME NOT TO MENTION AN EVEN LARGER AUDIENCE WORLDWIDE MOST OF THEM AREN'T LIKELY CUSTOMERS FOR A BIG SIX FIRM IS IT MORE OF AN EGO TRIP THAN A SAVVY MARKETING STRATEGY COOPERS HAD SOME BITS OF BAD PUBLICITY LAST YEAR SAYS JOHN C BURTON PROFESSOR OF ACCOUNTING AT THE COLUMBIA UNIVERSITY GRADUATE SCHOOL OF BUSINESS THE FIRM SETTLED TWO LAWSUITS LAST YEAR INCLUDING A REPORTED SETTLEMENT OF 95 MILLION WITH MINISCRIBE A DISK DRIVE MANUFACTURER IT ISN'T LIKELY THESE ADS WILL BE DIRECT SELLING ADDS MR BURTON CLIENTS WON'T SEE THE ADS AND SUDDENLY PICK UP THE PHONE COOPERS & LYBRAND INSISTS THAT ISN'T THE REASON FOR THE ADS THIS ISN'T GEARED TO GETTING US NEW CLIENTS SAYS BRIAN CARTY THE FIRM'S NATIONAL MARKETING DIRECTOR WE WANT OUR PARTNERS TO SEE THIS AD AND GET GALVANIZED AND EXCITED ABOUT THIS THAT'S AN EXPENSIVE PEP TALK THOUGH THE FIRM HAS 1250 PARTNERS IN THE US AND 1750 OVERSEAS COOPERS & LYBRAND IS NO 5 OF THE BIG SIX DOMESTICALLY WITH REVENUE OF 17 BILLION AND IT IS NO 3 INTERNATIONALLY WITH TOTAL REVENUE OF 54 BILLION IT HAS MORE THAN 17000 CLIENTS DOMESTICALLY AND NEARLY 50000 WORLDWIDE OTHER LIKELY TARGETS FOR THE NEW AD CAMPAIGN THE DECISION TO ADVERTISE FOLLOWED A YEARLONG 4 MILLION INTERNAL STUDY ON HOW TO POSITION THE ACCOUNTING FIRM GLOBALLY LAST NOVEMBER COOPERS & LYBRAND SETTLED ON THE BOSTONBASED AD AGENCY HILL HOLLIDAY CONNORS & COSMOPULOS AFTER A BRIEF SEARCH IT WAS HILL HOLLIDAY THAT URGED THE ACCOUNTING COMPANY TO BUY TIME FROM GENERAL ELECTRIC'S NBC NETWORK TO APPEAR ON THE SUPER BOWL TO KEEP THE SUSPENSE BUILDING EXECUTIVES AT HILL HOLLIDAY AND COOPERS & LYBRAND ARE BEING VAGUE ABOUT DETAILS OF THE NEW SPOT WHEN WAS THE LAST TIME SUSPENSE BUILT IN THE REALM OF ACCOUNTING EXCEPT IN CASES OF INTERNAL REVENUE SERVICE AUDITS BUT IT'S KNOWN THAT THE COMMERCIAL WILL FEATURE A FICTIONAL CHIEF EXECUTIVE ATTENDING AN ANNUAL STOCKHOLDERS MEETING THERE WILL BE NO DIALOGUE A VOICEOVER WILL MAKE NOTE OF THE TOUGH BUSINESS ENVIRONMENT AND ADD THAT THE ACCOUNTING FIRM COULD BE THE ANSWER TO SOME OF THE CHALLENGES FACING COMPANIES AFTER GRACING THE SUPER BOWL THE ADS WILL BE FEATURED ON SUCH SHOWS AS 60 MINUTES ON CBS A PRINT AD WILL APPEAR IN SEVERAL NEWSPAPERS BUT COOPERS & LYBRAND WILL BYPASS MAGAZINES ENTIRELY THIS IS A FIGHT FOR HOLDING ONTO AND INCREASING OUR CLIENTS' SHARE IN THE MARKET SAYS JACK CONNORS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE AD AGENCY PEOPLE KNOW NOTHING ABOUT ACCOUNTING FIRMS AND WE FEEL THEY HAVE A STORY TO TELL SO WE WANT TO PUT SOME MEAT ON THE BONES ONE OF THE ONLY OTHER ACCOUNTING FIRMS TO ADVERTISE AGGRESSIVELY IS CHICAGOBASED ANDERSEN CONSULTING AN AFFILIATE OF ARTHUR ANDERSEN ITS CURRENT ADS PRODUCED BY YOUNG & RUBICAM SHOW TWO FROGS LEAPING OVER ONE ANOTHER THE RULES OF BUSINESS HAVE CHANGED THE ADS SAY SO A COMPANY HAS TO START PLAYING QUANTUM LEAPFROG THE AD IS SEEN ON CBS'S SUNDAY MORNING AS WELL AS ON COVERAGE OF PROFESSIONAL TENNIS AND GOLF MATCHES DAVID BASSIN DIRECTOR OF NATIONAL ADVERTISING AT ANDERSEN CONSULTING SAYS WE FEEL THIS IS THE BEST WAY TO GAIN AWARENESS IN THE MARKETPLACE EXECUTIVES AT COOPERS & LYBRAND DON'T EXPECT THE AD CAMPAIGN TO BE ON TELEVISION VIRTUALLY UNCHALLENGED FOR LONG SAYS MR CARTY WE'RE UPPING THE ANTE WITH THIS AND WE'RE ABSOLUTELY COMFORTABLE AT DOING IT PREEMPTED BY A RIVAL FROM REPEATING ITS SUCCESSFUL SPONSORSHIP OF THE US OLYMPIC TEAM UNTIL 1997 REEBOK IS THROWING ITS ALLEGIANCE AND SPONSORSHIP BUCKS TO THE COMPETITION THE RUSSIANS REEBOK INTERNATIONAL LTD SAID IT HAS SIGNED AN EXCLUSIVE SPONSORSHIP AGREEMENT WITH THE RUSSIAN OLYMPIC COMMITTEE TO PROVIDE FOOTWEAR AND APPAREL TO RUSSIAN ATHLETES IN THE 1994 AND 1996 GAMES TERMS WEREN'T DISCLOSED THE STOUGHTON MASS SNEAKER MAKER MADE A BIG SPLASH IN BARCELONA SPAIN LAST SUMMER BY SPONSORING THE US OLYMPIC TEAM UNDER THAT ARRANGEMENT REEBOK GOT A BIG PUBLICITY BANG OUT OF THE REEBOK WARMUP SUITS THAT ATHLETES WORE DURING MEDAL CEREMONIES A REPEAT OF THAT SPONSORSHIP FEAT WON'T HOWEVER BE POSSIBLE FOR REEBOK AT EITHER THE 1994 WINTER GAMES IN LILLEHAMMER NORWAY OR THE 1996 SUMMER GAMES IN ATLANTA CHAMPION PRODUCTS ALREADY HAS THE APPARELPROVIDING RIGHTS TO US ATHLETES ALL SEWN UP AS PART OF THE FIRSTTIME US OLYMPIC TEAM SPONSORSHIP BY CHAMPION'S PARENT SARA LEE CORP REEBOK SAID IT IS STILL IN DISCUSSIONS WITH THE USOC ABOUT SOME OTHER WAY TO SPONSOR THE US ATHLETES MAGAZINE ADVERTISING IMPROVED IN 1992 BUT NOT BY A LOT AFTER A HEFTY DECLINE OF 9 IN AD PAGES IN 1991 MAGAZINE ADVERTISING BOUNCED BACK IN 1992 BY 24 TO 163516 PAGES PUBLISHERS INFORMATION BUREAU SAID DECEMBER SHOWED AN ENCOURAGING 4 INCREASE MAKING IT ONE OF NINE MONTHS IN 1992 TO SHOW ADPAGE GROWTH FROM 1991 AD REVENUE IN 1992 ENDED UP 8 FROM 1991 AT 71 BILLION SOME OF THE BIGGEST REVENUE CATEGORIES INCLUDED AUTOMOTIVE UP 10 TOILETRIES AND COSMETICS UP 12 DRUGS AND REMEDIES UP 66 AND COMPUTERS AND OFFICE EQUIPMENT UP 206 TRAVEL HOTEL AND RESORT REVENUES WERE DOWN SLIGHTLY 22 WHILE CIGARETTES TOBACCO AND ACCESSORIES TOOK MOREPRECIPITOUS PLUNGES 15 SEIKO SEIKO CORP OF AMERICA A UNIT OF SEIKO CORP JAPAN IS PULLING THE ACCOUNTS OF TWO OF ITS WATCH BRANDS PULSAR AND JAZ PARIS FROM AGENCY AC&R ADVERTISING ESTIMATED BILLINGS IN 1991 WERE 4 MILLION ACCORDING TO LEADING NATIONAL ADVERTISERS AN ADTRACKING FIRM THE MOVE COMES A WEEK AFTER THE TROUBLED SAATCHI & SAATCHI UNIT'S EXECUTIVE CREATIVE DIRECTOR PAUL CAPPELLI MADE AN ABRUPT EXIT FROM THE AGENCY AFTER A BRIEF STINT ADVERTISING FOR THE SEIKO BRAND REMAINS AT THE SHOP BEST WESTERN BEST WESTERN INTERNATIONAL FORMALLY TAPPED LORD DENTSU & PARTNERS A JOINT VENTURE OF NEW YORK AGENCY YOUNG & RUBICAM AND JAPANESE AGENCY DENTSU FOR ITS ESTIMATED 14 MILLION ACCOUNT THE PHOENIX HOTEL CHAIN HAD GIVEN LORD DENTSU AN INTERIM CREATIVE ASSIGNMENT LAST AUGUST AFTER PULLING ITS ACCOUNT FROM DENVER AGENCY KARSH & HAGAN CABLE CAMPAIGN THE CABLE ADVERTISING BUREAU AN INDUSTRY GROUP IS KICKING OFF AN AD CAMPAIGN SUNDAY TO BOOST THE IMAGE OF CABLE TELEVISION TO ADVERTISERS AND AGENCIES CALLED AMERICA'S SOLD ON CABLE THE CAMPAIGN INCLUDES THREE 30SECOND SPOTS CREATED BY SMASH ADVERTISING NEW YORK THAT CAB IS OFFERING TO CABLE NETWORKS AND OPERATORS NATIONWIDE 9301140037 930114 RETAILING TOYS R' THEM MOMANDPOP STORES PUT PLAYTHINGS LIKE THOMAS ON FAST TRACK BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL THOMAS THE TANK ENGINE A RAVE THIS CHRISTMAS FLOPPED WHEN IT FIRST APPEARED ON TOY SHELVES IN 1989 SALES WERE LESS THAN 2 MILLION EVEN THOUGH SHINING TIME STATION THE PUBLIC BROADCASTING SERVICE CHILDRENS' SHOW FEATURING THOMAS AND OTHER TALKING TRAINS WAS ALREADY A SMASH IN A SURPRISE MOVE THE CREATORS OF THE SHOW WITHDREW THOMAS FROM TOYS R US AND OTHER BIG RETAIL CHAINS AND OFFERED IT INSTEAD TO MOMANDPOP STORES AND OTHER SMALL RETAILERS IN 1990 INDUSTRY ESTIMATES ARE THAT THE THOMAS LINE TOYS AND VIDEOCASSETTES RANG UP NEARLY 200 MILLION IN SALES LAST YEAR WHAT HAPPENED WHEN CUSTOMERS ASKED DO YOU HAVE ANYTHING FROM SHINING TIME' THE WELLVERSED SPECIALTY RETAILERS KNEW THEY WERE TALKING THOMAS THE SMALLRETAILER INDUSTRY WAS THE GOOSE THAT LAID THE GOLDEN EGG FOR US SAYS KENN VISELMAN HEAD OF SALES AND MARKETING FOR QUALITY FAMILY ENTERTAINMENT CREATOR OF SHINING TIME STATION FACING BRUTAL COMPETITION FROM BEHEMOTHS SUCH AS TOYS R US INC AND WALMART STORES INC MANY SMALL TOY STORES ARE THRIVING AS INTRODUCERS OR REJUVENATORS OF NEWER ITEMS FROM SMALL MANUFACTURERS THAT THE BIG CHAINS ARE TOO BUSY TO NURTURE INDEED SMALL STORES ARE CREDITED FOR THE SUCCESS OF A SLEW OF POTENTIAL FLOPS ERECTOR SETS PLAYMOBIL BUILDING SETS AND KOOSH BALLS TO NAME A FEW OFTENTIMES TOO COMPLICATED OR WITH A QUAINT APPEAL THAT CAN'T BE EXPLAINED IN A 15SECOND COMMERCIAL THESE PRODUCTS COME OFF BEST WHEN DEMONSTRATED IN THE COZY CONFINES OF A NEIGHBORHOOD STORE WHERE OWNERS AND ASSISTANTS WHO KNOW THEIR FUN AND GAMES ARE EAGER TO HELP CUSTOMERS THE BIG CHAINS GAIN DOMINANT MARKET SHARE OF WELLKNOWN ITEMS THROUGH CUTTHROAT DISCOUNTING BUT SMALL MANUFACTURERS PREFER TO MARKET SOME PRODUCTS EXCLUSIVELY THROUGH SMALL STORES THE SPECIALTY STORE IS A GREAT NURSERY AND BREEDING GROUND FOR MANY SMALL TOY MANUFACTURERS WHOSE PRODUCTS WOULD OTHERWISE GET LOST IN THE GREAT BIG STORES OF A LARGE RETAILER NOTES JIM SILVER PUBLISHER OF TOY BOOK AN INDUSTRY MAGAZINE NO ONE KNOWS EXACTLY HOW MANY SMALL TOY RETAILERS THERE ARE IN THE US JOHN LEE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NEWLY FORMED LEARNING CURVE TOYS INC WHICH WILL SELL PRODUCTS ONLY TO THE SMALL STORES ESTIMATES THAT THIS SPECIALTY MARKET COMPRISES 3500 TO 4500 OUTLETS WITH A COMBINED 3 BILLION IN SALES OR 22 OF THE 14 BILLION TOYRETAILING INDUSTRY ALTHOUGH MANY ARE TAKING THEIR BRUISES IN BATTLING THE CHAINS A GOODLY NUMBER ARE PROSPERING GEOBRA BRANDSTAETTER GMBH THE GERMAN MAKER OF PLAYMOBIL CONSTRUCTION TOYS SELLS EXCLUSIVELY TO SPECIALTY STORES AND SAYS ABOUT THREEFOURTHS OF SMALL TOY SELLERS ARE CREDITWORTHY THAT IS ABOUT THE SAME PROPORTION AS 20 YEARS AGO WHEN THERE WERE AN ESTIMATED 3000 SMALL TOY STORES NOTES ALAN HESS PRESIDENT OF PLAYMOBIL USA INC GEOBRA BRANDSTAETTER'S US UNIT PREDICTIONS OF THE DEMISE OF THE LITTLE TOY RETAILER ARE A LITTLE BIT EARLY ADDS ALAN JACOBS A DALLAS TOY CONSULTANT AND LEARNING CURVE ADVISER THE STAYING POWER OF THIS SEGMENT OF THE MARKET IS REMARKABLE CONSIDERING THE CONSOLIDATION TAKING PLACE AMONG LARGE CHAINS LAST MONTH EARLY LEARNING CENTRES INC SAID IT WOULD CLOSE ITS 73 US TOY STORES AND DISMISS ABOUT 250 PEOPLE EFFECTIVE FEB 28 IN SEPTEMBER CHILD WORLD INC SHUTTERED ITS DOORS AND LIONEL CORP'S KIDDIE CITY CHAIN OPERATING UNDER CHAPTER 11 PROTECTION OF THE US BANKRUPTCY CODE HAS DWINDLED TO HALF THE SIZE IT WAS A FEW YEARS AGO MANY SMALL RETAILERS HAVE ALLIED THEMSELVES WITH MANUFACTURERS WHO DO LITTLE OR NO BUSINESS AT ALL WITH MASS MERCHANTS I BUY FROM 350 MANUFACTURERS AND MAYBE 20 SELL TO MASS MERCHANTS SAYS DAVID HESEL WHO WITH HIS WIFE BEV OWNS AND RUNS THE TOY SHOP IN CONCORD MASS EVEN MANUFACTURERS THAT SELL TO BOTH SECTORS OFTEN AGREE TO MAKE CERTAIN PRODUCTS ONLY FOR SPECIALTY STORES FOR INSTANCE ODDZON PRODUCTS INC SELLS ITS ORIGINAL KOOSH BALL THROUGH BOTH SMALL AND LARGE RETAILERS BUT IS SHIPPING ITS NEW KOOSH BASKETBALL ONLY TO THE SPECIALTY MARKET FOR THE NEXT SIX MONTHS THE ARRANGEMENT IS MUTUALLY ADVANTAGEOUS SMALLER MANUFACTURERS WHO CAN ILL AFFORD A FLOP CAN TEST THEIR PRODUCTS IN LIMITED QUANTITIES AND THE SMALL STORE CAN SET PRICES WITHOUT HAVING TO WORRY ABOUT COMPETITION FROM DISCOUNTERS BUT WHEN SUCCESS COMES FOR THE SMALL STORES IT IS OFTEN LIMITED THAT'S BECAUSE ONCE A NEW PRODUCT TAKES OFF AND SMALL MANUFACTURERS NO LONGER NEED TO RELY ON THE SMALL STORES TO BUILD AWARENESS THEY OFTEN TURN TO THE CHAINS IT ALLOWS US TO WALK BEFORE WE RUN EXPLAINS STEPHANE TREPPOZ VICE PRESIDENT OF MECCANO INC THE US UNIT OF FRANCE'S MECCANO SA IS NOW TAKING ITS ERECTOR SET TO THE CHAINS AFTER SALES IN SMALL STORES DOUBLED IN 1992 FROM 1991 THE BUILDING SYSTEM ENORMOUSLY POPULAR IN THE 1950S AND '60S WAS EVENTUALLY TROUNCED BY COLORFUL PLASTIC COMPETITORS AND FELL FROM FAVOR WITH A 95 AWARENESS LEVEL AMONG PARENTS THOUGH ONLY 5 AMONG KIDS THE REVIVED ERECTOR CAN COMPETE NEXT TO OTHER BUILDING SETS IN THE MASS MARKET MECCANO SAYS THE COMPANY PROJECTS SALES OF A MILLION UNITS IN 1993 TWICE ITS 1992 VOLUME MR TREPPOZ SAYS NOT ALL MANUFACTURERS WANT TO PLAY IN THE BIG LEAGUES PLAYMOBIL DID AND DIDN'T LIKE IT OFFERING A LINE OF 275 INTERLINKING PLAY SETS PLAYMOBIL MADE ITS US DEBUT IN 1976 A BETHLEHEM STEEL CORP UNIT WHICH DISTRIBUTED THE TOYS IN THE US PLACED THEM NEXT TO FISHERPRICE TOYS ON CHAINSTORE SHELVES SEEKING TO TAP INTO THE PRESCHOOL MARKET IN ITS BEST YEAR THE LINE HAD 8 MILLION IN SALES PLAYMOBIL'S MR HESS SAYS MATTEL INC TAKING OVER THE PRODUCT IN 1984 DID WORSE DESPITE TV ADVERTISING RECLAIMING THE US FRANCHISE IN 1988 PLAYMOBIL TOOK IT TO SPECIALTY STORES WHERE SALES IN 1992 TOPPED 32 MILLION UNDER THE PLAYMOBIL PLAN RETAILERS ARE ENCOURAGED TO SET UP PLAYMOBIL PLAYPENS TO ALLOW WHAT THE COMPANY CALLS AN OUTOFBOX EXPERIENCE THE IDEA IS TO GET PARENTS TO BUY A STARTER KIT PERHAPS FEATURING POLICE AND AMBULANCERELATED ITEMS THEN CHILDREN CAN SLOWLY ADD TO THE LINE AS THEY ASSEMBLE WHOLE CITIES IT'S A TOY WHOSE WONDER UNFOLDS AS THE PIECES COME TOGETHER AND THAT IS BEST MARKETED BY A TOY RETAILER ON THE FLOOR SAYS MR HESS THOUGH SPECIALTY STORES DRAW FROM ALL CROWDS CUSTOMERS TEND TO BE UPPERMIDDLECLASS WITH A BENT TOWARD A QUAINT AMBIENCE AT MR HESEL'S TOY SHOP IN CONCORD A TURNOFTHE CENTURY GERMAN TOY TRAIN CIRCLES BENEATH A TIN CEILING SOME OF THE MERCHANDISE SUCH AS A 325 WORLD WAR I BIPLANE ROCKER DOUBLES AS DECORATION I JUST LIKE THE FEELING TO THE WHOLE PLACE IT HAS NOOKS AND CRANNIES SAYS SUSAN MINOR A PATRON OF THE HESELS' TOY SHOP SHE HAS PLENTY OF COMPANY THE HESELS BOUGHT THE SHOP FIVE YEARS AGO WHEN IT HAD ANNUAL SALES OF 500000 LAST YEAR SALES CAME TO ABOUT 750000 AND MR HESEL SAYS A FINAL PAYMENT ON A 300000 LOAN IS ASSURED WHEN IT COMES DUE THIS YEAR CHRISTMAS WAS ALSO GOOD TO JOHN MCKIERNAN OWNER OF MILLER'S TOYS IN MAMARONECK NY WHICH RANG UP 22 MILLION IN SALES IN 1992 UP 10 FROM 1991 AND NINE TIMES THE 240000 HE TOOK IN WHEN HE PURCHASED THE STORE IN 1975 AT MILLER'S BIG SPENDERS CAN SHOP BY SPECIAL APPOINTMENT AFTER HOURS IT'S REALLY CONVENIENT SAYS ALLEN SAVOCA A UST INC SALES AND FORECAST MANAGER WHO HAS SHOPPED BY APPOINTMENT THE PAST FOUR CHRISTMASES THERE HIS TWO DAUGHTERS AGES SEVEN AND 11 ARE WELL KNOWN TO THE STORE'S STAFF THEY TAKE US AROUND TELL US WHAT OUR DAUGHTERS WOULD LIKE THEN THEY WRAP IT UP WITH THE NAME OF MY DAUGHTERS ON THE PRESENTS SAYS MR SAVOCA WHO BOUGHT 1000 OF TOYS FOR HIS GIRLS THIS CHRISTMAS FROM MILLER'S MILLER'S LIKE MANY OF THE SMALL STORES GOES TO SOME LENGTHS TO KEEP CUSTOMERS SATISFIED RECENTLY A SALES CLERK AT MILLER'S HURRIED INTO THE STORE OFFICE TO RELAY A CUSTOMER COMPLAINT ABOUT A PARKING TICKET MR MCKIERNAN QUICKLY CALLED THE LOCAL POLICE DEPARTMENT CAN YOU JUST LAY OFF THE TICKETING HE ASKED THE SERGEANT ON DUTY EXPLAINING MY CUSTOMERS ARE JUST PICKING UP THEIR ORDERS THE POLICEMAN ASSURED MR MCKIERNAN THAT THE METER MAIDS WOULD TURN THE OTHER WAY THEY KNOW ME DOWN AT THE POLICE STATION SAYS MR MCKIERNAN I'VE LIVED HERE FOR YEARS 9301140036 930114 CREDIT MARKETS BOND PRICES END LITTLE CHANGED AS MARKET TAKES IRAQI TURMOIL IN STRIDE TREASURY YIELD FALLS BY THOMAS D LAURICELLA AND ABBEY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE TREASURY MARKET SEEMED TO TAKE THE TURMOIL IN IRAQ IN STRIDE WITH PRICES OF NOTES AND BONDS ENDING LITTLE CHANGED TO AS MUCH AS 1/2 POINT HIGHER NEW CORPORATE AND MUNICIPAL ISSUANCE SLOWED YESTERDAY GIVING THE MARKET A CHANCE TO FOCUS ON THE AUCTION OF 975 BILLION IN SEVENYEAR TREASURY NOTES THE AUCTION DIDN'T GO WELL TRADERS SAID BUT STRONG DEMAND FOR THE NEW NOTE IN POSTAUCTION TRADING SEEMED TO PICK UP THE SLACK THE BENCHMARK 30YEAR TREASURY BOND ROSE 1/2 POINT TO 102 7/32 A GAIN OF 5 FOR A BOND WITH A 1000 FACE VALUE FOR A YIELD OF 743 DOWN FROM 747 TUESDAY OTHER TREASURY NOTES WERE SLIGHTLY HIGHER WITH THE 10YEAR NOTE RISING MORE THAN 1/4 POINT TO 97 26/32 FOR A YIELD OF 667 DOWN FROM 669 THE COUPONEQUIVALENT YIELDS FOR TREASURY BILLS WERE SLIGHTLY LOWER BY DAY'S END THE ONEYEAR BILL WAS YIELDING 348 DOWN FROM 353 TUESDAY THE SIXMONTH BILL YIELDED 322 DOWN FROM 324 AND THE THREEMONTH BILL YIELDED 300 DOWN FROM 302 THE WIDELY EXPECTED MILITARY STRIKE AGAINST IRAQ YESTERDAY HAD ONLY A MUTED IMPACT ON TRADING PARTICIPANTS SAID TYPICALLY IN TIMES OF STRIFE INVESTORS WILL MOVE FUNDS INTO BILLS AND SHORTTERM TREASURYS AS A WAY OF KEEPING THEIR HOLDINGS SAFE AND LIQUID IN WHAT IS KNOWN AS A FLIGHT TO QUALITY BUT PLAYERS SAID THERE WAS LITTLE MOVEMENT INTO SHORT TREASURYS YESTERDAY WHILE SHORTER MATURITIES PERFORMED WELL THROUGHOUT THE DAY THIS WAS ATTRIBUTED MORE TO TRADERS' RELUCTANCE TO SELL THOSE ISSUES FOR FEAR OF BEING CAUGHT OFF GUARD BY ANY FLIGHTTOQUALITY BUYING THE MUTED RESPONSE TO THE ATTACK ON IRAQ OVER ITS GULF WAR CEASEFIRE VIOLATIONS DIDN'T COME AS ANY SURPRISE EITHER FROM THE BEGINNING THIS WAS VIEWED AS VERY LIMITED RAID WITH NO POTENTIAL FOR A COMMITMENT OF GROUND TROOPS SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE QUIET REACTION TO THE NEW ALLIED ATTACK ON IRAQ CONTRASTS WITH THE MARKET'S VOLATILITY IN THE DAYS LEADING UP TO THE PERSIAN GULF WAR TWO YEARS AGO AT THAT TIME THERE WAS GREAT UNCERTAINTY ABOUT HOW WIDE THE CONFLICT MIGHT BECOME AND WHAT IMPACT IT WOULD HAVE ON WORLD OIL SUPPLIES IN THE TWO WEEKS BEFORE THE START OF THE WAR TREASURY BILL YIELDS FELL BY ABOUT 050 PERCENTAGE POINT AND THE YIELD ON THE 30YEAR TREASURY BOND ROSE ABOUT 030 PERCENTAGE POINT IT'S NOT THE BEGINNING OF THE WAR LIKE TWO YEARS AGO BUT THE STORY MAY NOT BE TOTALLY OVER SAID MATTHEW ALEXY GOVERNMENT TRADING STRATEGIST AT FIRST BOSTON CORP THE ATTACK DID MAKE THE MARKET EVEN MORE WARY THAN USUAL OF THE TREASURY'S SEVENYEAR NOTE AUCTION SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES IN PRINCETON NJ THE SEVENYEAR NOTES HAVE HAD A CHECKERED PAST AND THAT CARRIED THROUGH TO TODAY HE SAID ONE PROBLEM THE MARKET OFTEN HAS WITH THE SEVENYEAR NOTE IS THAT IT IS BEYOND THE TIME HORIZON OF MANY INSTITUTIONAL INVESTORS YET IS CONSIDERED TOO SHORTTERM TO BE USEFUL AS A SPECULATIVE VEHICLE IT ALWAYS HAS THE POTENTIAL TO BE AN ORPHAN MR JOHNSON OF FIRST CHICAGO SAID THE TREASURY AWARDED THE SEVENYEAR NOTE AT AN AVERAGE YIELD OF 641 UP SHARPLY FROM 601 AT THE OCTOBER AUCTION AND SLIGHTLY ABOVE MARKET EXPECTATIONS AT AUCTION TIME WHEN THE NOTE WAS YIELDING 640 IN WHENISSUED TRADING ANALYSTS HIGHLIGHTED THE DIFFERENCE BETWEEN THE AVERAGE YIELD AND THE HIGH YIELD WHICH IS KNOWN AS A TAIL IN DESCRIBING INTEREST IN THE ISSUE AS LACKLUSTER WITH A HIGH YIELD OF 644 THE 003 PERCENTAGE POINT SPREAD AT YESTERDAY'S OFFERING WAS WIDER THAN AVERAGE A LARGER TAIL TENDS TO INDICATE LESS AGGRESSIVE BIDDING THE BIDTOCOVER RATIO WHICH COMPARES THE NUMBER OF BIDS ACCEPTED TO THE NUMBER RECEIVED SHOWED A SIMILAR PICTURE OF LACKLUSTER INTEREST IN THE AUCTION THE RATIO YESTERDAY WAS 232TO1 BELOW THE 256TO1 AVERAGE POSTED OVER THE PAST 12 AUCTIONS BUT AFTER NEWS OF THE AUCTION RESULTS THE SEVENYEAR NOTE ALONG WITH OTHER INTERMEDIATE AND LONGTERM SECURITIES TRADED HIGHER AS BUYERS WHO HAD AVOIDED THE AUCTION BECAUSE OF THE ATTACK ON IRAQ STEPPED INTO THE MARKET THAT BUYING CAUGHT OFF GUARD THOSE TRADERS WHO HAD LOOKED AT THE RESULTS AND SET SHORTS OR POSITIONS WHERE SECURITIES ARE SOLD IN ANTICIPATION OF BEING BOUGHT BACK AT LOWER LEVELS BY LATE YESTERDAY THE WHENISSUED SEVENYEAR NOTE YIELDED 634 AN INDICATOR OF STRONGER DEMAND THE TREASURY ALSO YESTERDAY CALLED TWO OLD BOND ISSUES IN THE FINAL YEARS OF THEIR MATURITIES ACCORDING TO LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC A TREASURY ANALYSIS FIRM YESTERDAY'S CALLS MARKED ONLY THE SECOND TIME SINCE 1962 THAT THE TREASURY HAS BEEN ABLE TO CALL SOME OF ITS DEBT UNTIL 1985 THE TREASURY STILL ISSUED SOME OF ITS DEBT WITH CALL DATES THAT FOR THE 30YEAR BOND GENERALLY FELL IN THE LAST FIVE YEARS OF MATURITY MR CRANDALL SAID YESTERDAY THE TREASURY CALLED A 7 ISSUE SOLD IN 1973 THAT HAD A FINAL MATURITY OF 1998 BUT WAS CALLABLE AS OF MAY 15 1993 LESS THAN 1 BILLION WAS ORIGINALLY ISSUED OF THE 7 NOTE ACCORDING TO WRIGHTSON AND LESS THAN 500 MILLION OF THAT WAS STILL HELD BY THE PUBLIC AS OF SEPT 30 THE TREASURY ALSO CALLED A 4 1/8 ISSUE THAT HAD A FINAL MATURITY IN 1994 BUT WAS CALLABLE AS OF MAY 15 1993 THESE SO CALLED FLOWER BONDS WERE LAST ISSUED IN THE 1960S BUT A FEW ARE STILL OUTSTANDING ACCORDING TO RH WRIGHTSON THESE BONDS HAVE THE SPECIAL FEATURE OF BEING REDEEMABLE AT FACE VALUE WITH ACCRUED INTEREST IF PRESENTED TO THE TREASURY TO PAY FEDERAL ESTATE TAXES ONLY ABOUT 75 MILLION OF THIS ISSUE IS STILL IN PUBLIC HANDS RH WRIGHTSON SAID TERMS OF THE ORIGINAL OFFERING REQUIRED THAT THE TREASURY GIVE BONDHOLDERS FOUR MONTHS' NOTICE OF ANY CALL ACCORDING TO MR CRANDALL THE PORTION OF THE BONDS NOT IN PUBLIC HANDS IS HELD BY THE FEDERAL RESERVE AND GOVERNMENT AGENCY PORTFOLIOS THE LAST TIME THE TREASURY CALLED A BOND WAS OCTOBER 1991 WHEN IT CALLED A 75 ISSUE THAT WAS LESS THAN TWO YEARS FROM ITS MATURITY DATE RH WRIGHTSON SAYS THE TREASURY COULD INCREASE THE SIZE OF ITS REGULAR MONTHEND AUCTION OF FIVEYEAR NOTES BY ABOUT 500 MILLION TO REPLACE THE CASH USED TO CALL THE 7 ISSUE THE TREASURY ALSO ANNOUNCED IT WILL BE SELLING DIRECTLY TO ARGENTINA ABOUT 185 BILLION IN ZEROCOUPON BONDS IN SUPPORT OF THE COUNTRY'S DEBTREDUCTION ACCORD WITH COMMERCIAL BANKS ALTHOUGH THE MOVE HAD GENERALLY BEEN EXPECTED IT ENDED ANY REMAINING SPECULATION THAT ARGENTINA MIGHT HAVE TO BUY THE SECURITIES IN THE SECONDARY MARKET TRADERS SAID THAT IF ARGENTINA WAS FORCED TO GO THE OPEN MARKET PRICES OF LONGTERM SECURITIES WOULD HAVE BEEN DRIVEN HIGHER RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT SALES OF NEW CORPORATE BONDS SLOWED AS NEW ISSUANCE TOTALED 148 BILLION DOWN FROM 46 BILLION TUESDAY PRICES OF CORPORATE BONDS IN THE SECONDARY MARKET ENDED FLAT TO UP 1/4 POINT REBOUNDING FROM MODEST DECLINES EARLIER KROGER CO AMONG THE MOST ACTIVE BORROWERS IN THE JUNK BOND MARKET LAST YEAR IS EXPECTED TO PRICE ITS FIRST DEAL OF 1993 TODAY ACCORDING TO SYNDICATE OFFICIALS CLOSE TO THE DEAL THE OFFERING CONSISTING OF 200 MILLION OF SENIOR SECURED NOTES MATURING IN 2005 WILL BE HANDLED BY UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC THE NOTES WHICH ARE NONCALLABLE FOR FIVE YEARS ARE RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEBMINUS BY STANDARD & POOR'S CORP LIKE OTHER CORPORATIONS KROGER IS TAKING ADVANTAGE OF LOW INTEREST RATES IN PART BECAUSE OF STRONG INVESTOR DEMAND FOR CORPORATE SECURITIES ONE REASON INVESTORS ARE EAGERLY BUYING NEW CORPORATE BONDS IS THAT THEY HAVE REDUCED THEIR PURCHASES OF MORTGAGEBACKED SECURITIES BUYERS WHO TURNED TO MORTGAGES AS SURROGATES FOR CORPORATE BONDS ARE RETURNING TO GROUND THAT IS FAMILIAR AND IS LOOKING BRIGHTER AS THE ECONOMY TURNS AROUND IN THE MORE TROUBLED ECONOMIC TIMES OF 1990 AND 1991 WALL STREET MADE A CASE FOR MORTGAGES AS AN ALTERNATIVE TO MORE CREDITSENSITIVE CORPORATES DEALERS STRESSED THEIR TRIPLEA QUALITY AND GENEROUS YIELDS BUT IN 1992 MORTGAGE INTEREST RATES REACHED HISTORIC LOWS PROMPTING HOMEOWNERS TO REFINANCE BILLIONS OF DOLLARS OF LOANS AS A RESULT MANY MORTGAGEBACKED SECURITIES BUYERS WERE HANDED BACK THEIR INVESTMENTS FAR EARLIER THAN THEY EXPECTED STRUCTURES DID NOT HOLD UP UNDER THE STRONG PREPAYMENTS WE SAW IN 1992 SAID DAVID GLEN MANAGING DIRECTOR AT SCUDDER STEVENS & CLARK A MUTUAL FUND FIRM SO INVESTORS SAID LET'S GO BACK TO WHAT WE KNOW' AND THAT'S CORPORATE BONDS OVER THE PAST YEAR MANY COMPANIES SHED HIGHCOST DEBT AND RAISED EQUITY PUTTING THEM IN A GOOD POSITION IF THE ECONOMY CONTINUES TO IMPROVE WHILE MAKING THEM STRONG ENOUGH TO SURVIVE IF IT DOESN'T THIS IS THE RIGHT TIME OF THE CYCLE TO INVEST IN CORPORATE BONDS SAID JOHN GEISSINGER SENIOR PORTFOLIO MANAGER OF PUTNAM INVESTMENTS THE MANAGEMENT COMPANY OF PUTNAM MUTUAL FUNDS MOREOVER THERE IS A BIT OF A CONSENSUS THAT YIELDS WILL STAY ABOUT THE SAME FOR MUCH OF THIS YEAR ATTRACTING MORE DEMAND AS INVESTORS BECOME LESS NERVOUS ABOUT THE DIRECTION OF YIELDS AND THE COURSE OF THE NEW ADMINISTRATION IN WASHINGTON HOWEVER ELLEN SAFIR MANAGING DIRECTOR OF INVESTMENTS AT HOWARD HUGHES MEDICAL INSTITUTE WARNS THAT INVESTORS IN SEARCH OF HIGHER RETURNS SHOULD BE EVEN MORE VIGILANT ABOUT THE CORPORATE BONDS THEY PICK IN TERMS OF OUTPERFORMING THE MARKET YOU'RE GOING TO HAVE TO BE MUCH MORE SELECTIVE OF CORPORATE CREDITS SAID MS SAFIR PENTUP DEMAND COULD EXPLAIN WHY THE PRICE OF ONTARIO PROVINCE'S 3 BILLION GLOBAL ISSUE OF 10YEAR NOTES ROSE SOON AFTER THE DEAL WAS PRICED TUESDAY MORNING INITIALLY PRICED AT 99693 TO YIELD 7419 A SPREAD OF 076 PERCENTAGE POINT ABOVE THE 10YEAR TREASURY NOTE THE NOTES ROSE TO 99 7/8 TO YIELD 7389 A 073POINT SPREAD THE OFFERING WAS RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P BY CONTRAST 10YEAR PLANNED AMORTIZATION CLASSES IN COLLATERALIZED MORTGAGE OBLIGATIONS WHICH ARE RATED TRIPLEA RECENTLY TRADED IN A RANGE OF 076 TO 080 PERCENTAGE POINT ABOVE THE 10YEAR TREASURY NOTE BONDS WERE 1/8 LOWER TO 1/4 POINT HIGHER IN LIGHT TRADING AS WAS THE CASE WITH THE OTHER US MARKETS MUNICIPAL BONDS BARELY BUDGED IN RESPONSE TO THE ATTACK ON IRAQ IN LIGHT PRIMARY MARKET ACTIVITY A FIRST BOSTON CORP GROUP WON MARYLAND'S 130 MILLION 1993 FIRST SERIES STATE AND LOCAL FACILITIES LOAN GENERAL OBLIGATION BONDS YIELDS RANGE FROM 4 IN 1996 TO 580 IN 2008 THE BONDS HAVE BEEN RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY'S 2052 MILLION ELEVENTH SERIES WATER SYSTEM REVENUE BONDS WERE PRICED BY A GOLDMAN SACHS & CO GROUP WITH YIELDS THAT RANGED FROM 350 IN 1994 TO 615 IN 2012 THE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE MORTGAGE SECURITIES MARKET MANAGED MARGINAL GAINS IN TANDEM WITH TREASURYS ALTHOUGH NEITHER AN ALLIED ATTACK ON IRAQ NOR A SEVENYEAR TREASURY NOTE AUCTION CAUSED MUCH OF A STIR THE MARKETS WERE UNDERPINNED IN LATE DEALINGS BY A RELATIVELY WELLRECEIVED 975 BILLION SEVENYEAR NOTE SALE AND NEWS THAT THE ATTACK ON SURFACETOAIR MISSILES AND INFRASTRUCTURE IN IRAQ WAS COMPLETED SOON AFTER IT BEGAN THERE WAS A BIT MORE LIFE IN THE PRIMARY MARKET THAN THE SECONDARY ARENA WITH 145 BILLION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES BRINGING THE WEEK'S ANNOUNCED AGENCY REMIC VOLUME TO 4 BILLION COMBINED WITH LAST WEEK'S 55 BILLION THAT BRINGS THE NEW YEAR'S ISSUANCE SO FAR CLOSE TO 10 BILLION AN ARRAY OF COLLATERAL WAS USED INCLUDING FREDDIE MAC GOLD 7 GINNIE MAE 8 THREE CLASSES OF AN OUTSTANDING REMIC THAT WAS BACKED BY STRIPPED GINNIE MAE 8 FANNIE MAE 6 1/2 SEVENYEAR BALLOON MORTGAGE SECURITIES AND FANNIE MAE 8 THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9301140035 930114 COMMODITIES IRAQ RAID GIVES OIL PRICES A ROLLERCOASTER RIDE BUT IMPACT ON MARKETS APPEARS TO BE FLEETING BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PRICING VOLATILITY SWEPT WORLD OIL MARKETS AS US AND ALLIED PLANES BOMBED MISSILE SITES IN SOUTHERN IRAQ IN HECTIC TRADING PRICES WERE UP AND DOWN IN A ROLLERCOASTER DAY MANY SPIKED HIGHER IN EARLY TRADING AND THEN PLUNGED IN THE AFTERNOON SOME TO LIFEOFCONTRACT LOWS BEFORE REBOUNDING IN THE FINAL MINUTES ON THE NEW YORK MERCANTILE EXCHANGE THE FUTURES PRICE OF LIGHT LOWSULFUR CRUDE OIL FOR FEBRUARY DELIVERY SWUNG BETWEEN 1884 A BARREL THE HIGH AND 1815 A BARREL THE LOW IT RALLIED IN THE MORNING ONLY TO GO INTO A FREE FALL IN THE AFTERNOON BUT AS THE TRADING CLOSE NEARED FEBRUARY CRUDE SURGED ANEW TO SETTLE AT 1850 A BARREL UP 12 CENTS FOR THE DAY IT WAS ONE OF THOSE DAYS WHERE EVERYBODY WAS GROPING IN THE DARK SAID PETER BEUTEL AN ENERGY ANALYST WITH BRODY WHITE & CO A NEW YORK COMMODITY BROKERAGE FIRM BUT WHETHER YOU WERE BULLISH OR BEARISH YOU WENT HOME CONFUSED FUTURES TRADING IN LONDON WAS EQUALLY ERRATIC ON THE INTERNATIONAL PETROLEUM EXCHANGE BRENT BLEND CRUDE PRICES RALLIED ON RUMORS OF THE BOMBING ATTACK ON IRAQ BUT WHEN NEWS OF THE RAID WAS CONFIRMED ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT PRICES CAME DOWN QUICKLY AS PARTICIPANTS TOOK PROFITS THE BRENT FUTURES CLOSED MIXED THE FEBRUARY CONTRACT ENDED FIVE CENTS A BARREL HIGHER THE ALLIED BOMBINGS FOLLOWED WEEKS OF PROVOCATIONS AND CEASEFIRE VIOLATIONS BY IRAQ'S SADDAM HUSSEIN BUT BEYOND THE VOLATILITY IN TRADING NEITHER THE INTRANSIGENCE OF THE IRAQI PRESIDENT NOR THE RETALIATORY UNITED NATIONSSANCTIONED RAID ON THE MISSILE SITES SEEMED TO LEAVE MUCH OF A LASTING IMPRESSION ON OIL MARKETS THE MARKETS ARE SAYING AGAIN WE ARE NOT WORRIED ABOUT SADDAM AND WHAT HE CAN DO TO PERSIAN GULF OIL SAID PETER GIGNOUX SENIOR VICE PRESIDENT OF THE PETROLEUM DESK AT SMITH BARNEY HARRIS UPHAM EUROPE LTD IN LONDON MORE IMPORTANT TO OIL PRICES AT THE MOMENT MR GIGNOUX SUGGESTED IS THE LACK OF DEMAND FOR PETROLEUM PRODUCTS AND AN OPEC OVERSUPPLY ON THE DEMAND SIDE EVIDENCE IS MOUNTING THAT OIL USE IS INCREASING WORLDWIDE AFTER REMAINING SLUGGISH FOR SEVERAL YEARS THE AMERICAN PETROLEUM INSTITUTE REPORTED YESTERDAY THAT DELIVERIES OF REFINED PRODUCTS IN THE US THE WORLD'S BIGGEST OIL CUSTOMER ROSE 16 IN 1992 THE FIRST SUBSTANTIAL GAIN SINCE 1988 ALSO YESTERDAY THE INTERNATIONAL ENERGY AGENCY FORECAST FURTHER INCREASES IN OIL DEMAND THIS YEAR THE AGENCY ESTIMATED THAT 1993 WORLD OIL DEMAND WILL BE UP 600000 BARRELS A DAY OR 1 TO 676 MILLION BARRELS A DAY BUT THE PARISBASED AGENCY WHICH REPRESENTS MAJOR WESTERN OILCONSUMING NATIONS ALSO CITED RISING PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AS A SIGNIFICANT FACTOR IN THE SUPPLYDEMAND PICTURE IT ESTIMATED THAT OPEC'S OUTPUT ROSE TO A 10YEAR HIGH OF NEARLY 253 MILLION BARRELS A DAY IN DECEMBER SEVERAL OF OPEC'S OIL MINISTERS ARE BECOMING ALARMED AT THE SIZZLING OUTPUT PACE AND THE RESULTING DETERIORATION IN PRICES LIBYA'S OIL MINISTRY ANNOUNCED YESTERDAY THAT LIBYAN CRUDEOIL PRODUCTION WILL BE REDUCED BY 50000 BARRELS A DAY EFFECTIVE TOMORROW AND ALIRIO PARRA VENEZUELA'S OIL MINISTER AND OPEC'S PRESIDENT HAS BEGUN A CAMPAIGN TO URGE OTHER OIL EXPORTERS TO COOPERATE BY CUTTING BACK THEIR PRODUCTION TOO IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES FELL DESPITE THE ALLIED BOMBING RAID ON IRAQ IN TRADING ON THE NEW YORK COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY LOST 120 TO SETTLE AT 32760 AN OUNCE SILVER WAS UNCHANGED AT 3697 AN OUNCE FOR THE ACTIVELY TRADED MARCH CONTRACT GOLD WAS PRETTY MUCH IGNORED SAID FRED DEMLER METALS ECONOMIST AT PAINEWEBBER IN TIMES OF MILITARY TENSION HE SAID INVESTORS HAVE BEEN TURNING TO THE DOLLAR TO THE DETRIMENT OF THE PRECIOUS METALS GOLD PRICES REMAIN UNDER PRESSURE AMID CONCERNS OVER REPORTS OF HEAVY SELLING OF BULLION BY CENTRAL BANKS LAST YEAR AND ON REPORTS OF RECENT SALES BY MIDDLE EAST SYNDICATES YESTERDAY'S DROP IN GOLD PRICES UNDERSCORES THE DEARTH OF INVESTOR DEMAND IN THE GOLD MARKET AND IN THE BROADER PRECIOUS METALS MARKET MR DEMLER NOTED COPPER COPPER FUTURES PRICES REBOUNDED ON MOSTLY TECHNICAL FACTORS WITH THE ACTIVELY TRADED MARCH CONTRACT CLOSING UP 110 CENTS TO 9865 CENTS A POUND AFTER DROPPING A CUMULATIVE 10 CENTS A POUND IN HEAVY VOLUME EARLIER THIS WEEK THE MARKET WAS PUSHED HIGHER ON SHORT COVERING BY THE COMMODITY FUNDS SAID SCOTT MEYERS CHIEF FUTURES STRATEGIST FOR REDELSILGO GROUP LTD SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS MR MEYERS AND OTHER ANALYSTS SAID COPPER COULD MOVE SIGNIFICANTLY ABOVE ITS CURRENT LEVELS IF IT BREACHED THE 100APOUND LEVEL WE THINK IT COULD MOVE TO 10380 WHICH WAS MONDAY'S LOW MR MEYERS SAID NOTING THAT HIS ANALYSIS WAS BASED ON TECHNICAL OR PRICETREND FACTORS THAT ARE GENERALLY INDEPENDENT OF BROAD SUPPLYANDDEMAND INFLUENCES GRAINS AND SOYBEANS WHEAT FUTURES PRICES CLIMBED IN THE WAKE OF A US AGRICULTURE DEPARTMENT REPORT PROJECTING RELATIVELY SMALL WINTER WHEAT PRODUCTION THIS YEAR IN A REPORT RELEASED AFTER TRADING ON TUESDAY THE DEPARTMENT ESTIMATED SEEDINGS OF 515 MILLION ACRES OF WINTER WHEAT ONLY ABOUT 400000 ACRES MORE THAN FARMERS PLANTED LAST YEAR THE NUMBER WAS INTERPRETED AS BULLISH BY GRAIN TRADERS AT THE CHICAGO BOARD OF TRADE BECAUSE MANY IN THE GRAIN INDUSTRY HAD BEEN EXPECTING A FIGURE CLOSER TO 535 MILLION ACRES IN TRADING YESTERDAY THE WHEAT CONTRACT FOR MARCH DELIVERY WAS UP 6 1/2 CENTS TO 37525 A BUSHEL THE GOVERNMENT REPORT HAD THE OPPOSITE EFFECT ON CORN FUTURES PRICES THE DEPARTMENT ESTIMATED CORN PRODUCTION FOR 1992 AT A RECORD 948 BILLION BUSHELS WELL ABOVE THE AVERAGE INDUSTRY GUESS OF ABOUT 932 BILLION BUSHELS CORN FOR MARCH DELIVERY FELL 2 3/4 CENTS TO 2185 A BUSHEL 9301140034 930114 CALIFORNIA GRANTS PERMIT TO CHEVRON TO USE OIL TANKERS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL A CALIFORNIA STATE AGENCY IN A STUNNING REVERSAL CONDITIONALLY APPROVED A REQUEST BY CHEVRON CORP AND A CONSORTIUM OF OIL PRODUCERS TO TEMPORARILY TRANSPORT OIL BY MARINE TANKER FROM THE RICH POINT ARGUELLO FIELD NORTHWEST OF SANTA BARBARA CALIF TO REFINERIES IN LOS ANGELES THE 7TO4 VOTE WAS A MAJOR VICTORY FOR THE OIL PRODUCERS WHOSE EFFORTS TO OBTAIN A TANKERING PERMIT HAVE BEEN REJECTED TIME AND AGAIN SINCE 1987 A 25 BILLION PLANT AND RELATED FACILITIES AT POINT ARGUELLO WENT IDLE FOR YEARS AFTER THEY WERE BUILT WHILE THE OIL COMPANIES AND THE COMMUNITY FOUGHT OVER HOW THE CRUDE OIL WOULD BE MOVED WE'RE VERY GRATIFIED BY THE COASTAL COMMISSION'S ACTION TODAY SAID A CHEVRON SPOKESMAN WE HAVE TO MEET WITH OUR PARTNERS AND THEY HAVE TO AGREE TO THE PERMIT CONDITIONS WE BELIEVE THAT IF WE CAN COME TO A CONSENSUS INTERIM TANKERING COULD BEGIN AS EARLY AS LATE MARCH THE VOTE CAME AT THE END OF A HEARING YESTERDAY IN SANTA MONICA CALIF THAT WAS ATTENDED BY HUNDREDS OF PEOPLE INCLUDING REPRESENTATIVES FROM MANY GROUPS WHO HAVE LONG OPPOSED TANKERING ALONG CALIFORNIA'S SOUTH COAST WE'RE VERY CONCERNED THAT THIS WILL PROVE TO BE A VERY TRAGIC MISJUDGMENT SAID JANA ZIMMER SPECIAL COUNSEL TO THE AMERICAN OCEANS CAMPAIGN AN ENVIRONMENTAL ADVOCACY GROUP LINDA KROP A LAWYER REPRESENTING A CONSORTIUM OF SANTA BARBARA COMMUNITY GROUPS SAID THE GROUP WOULD TRY TO STOP THE TANKERING BY OPPOSING THE ISSUANCE OF STATE PERMITS NEEDED FOR THE OPERATION OF A RELATED PROCESSING PLANT THE PLAN APPROVED BY THE CALIFORNIA COASTAL COMMISSION CALLS FOR CRUDE OIL TO BE MOVED IN DOUBLEHULLED DOUBLEBOTTOMED TANKERS FOR UP TO THREE YEARS THAT WOULD PRESUMABLY ALLOW ENOUGH TIME FOR CONSTRUCTION OF A PROPOSED NEW PIPELINE ALONG A RAILROAD RIGHTOFWAY LEADING FROM POINT ARGUELLO THROUGH VENTURA COUNTY AND INTO LOS ANGELES UNDER CONDITIONS OF THE PERMIT THE OIL COMPANIES WOULD BE REQUIRED TO CEASE TANKERING BY JAN 1 1996 THEY WOULD ALSO AGREE TO FINANCIALLY SUPPORT THE PERMIT PROCESS FOR THE PROPOSED PIPELINE WHICH IS CURRENTLY UNDERGOING ENVIRONMENTAL REVIEW AND THE COMPANIES WOULD AGREE TO STOP ALL TANKERING OF POINT ARGUELLO CRUDE OIL FROM THE SAN FRANCISCO BAY AREA SOME OF THE COMMISSIONERS WHO TURNED DOWN A SIMILAR TANKER PERMIT REQUEST A COUPLE OF YEARS AGO MAY HAVE CHANGED THEIR MINDS AFTER THE OIL COMPANIES BEGAN PIPING POINT ARGUELLO CRUDE NORTH TO SAN FRANCISCO ON EXISTING LINES AND THEN LOADING IT ONTO TANKERS FOR THE LONG TRIP SOUTH TO LOS ANGELES THE SAN FRANCISCO TO LOS ANGELES TRIP EXPOSES MORE OF THE COASTLINE TO THE POTENTIAL FOR A DAMAGING OIL SPILL THAN WOULD THE DIRECT ROUTE CHEVRON AND ITS PARTNERS HAVE ALREADY INVESTED 11 MILLION FOR PRELIMINARY ENGINEERING STUDIES FOR THE PROPOSED PIPELINE THE CHEVRON SPOKESMAN SAID BUT PAST EFFORTS TO BUILD A NEW OIL PIPELINE TO LOS ANGELES HAVE RUN INTO ROADBLOCKS THE OIL COMPANIES' OPPONENTS IN SANTA BARBARA DOUBT THE PIPELINE WILL EVER BE BUILT AND DESPITE THE THREEYEAR LIMIT ON THE PROPOSED PERMIT IT WILL BE IMPOSSIBLE TO BLOCK ITS RENEWAL ONCE MARINE TANKERING BEGINS THEY ARGUE 9301140033 930114 BUSINESS BRIEFS CR BARD INC WILL BUY BACK TWO MILLION OF ITS SHARES PERIODICALLY WHICH WILL BE CANCELED AND RETURNED TO THE STATUS OF AUTHORIZED BUT UNISSUED STOCK GENEVA STEEL WILL INCREASE FLATROLLED STEEL PRICES ABOUT 3 EFFECTIVE IMMEDIATELY ELI LILLY & CO WILL BUILD A 53 MILLION PLANT IN KOBE JAPAN TO PRODUCE INJECTABLE PHARMACEUTICAL PRODUCTS FOR THE JAPANESE MARKET W&T OFFSHORE INC REACHED AN AGREEMENT WITH FOREST OIL CORP TO DRILL SIX EXPLORATORY WELLS BY YEAR'S END IN THE OUTER CONTINENTAL SHELF AREA OF THE GULF OF MEXICO ON LEASES FOREST OWNS OFFSHORE PIPELINES INC SAID THAT OPMI LTD ITS JOINT VENTURE WITH MARITIME INDUSTRIAL SERVICES LTD RECEIVED A LETTER OF INTENT FOR A 21 MILLION PROJECT FOR OFFSHORE CONSTRUCTION IN THE BUKHA FIELD DEVELOPMENT OFF OMAN PEOPLES TELEPHONE CO'S CARIFONE CELLULAR PHONE RENTAL UNIT SIGNED AN EXCLUSIVE THREEYEAR AGREEMENT VALUED AT ABOUT 15 MILLION WITH ALAMO RENT A CAR INC TO ESTABLISH PORTABLETELEPHONE RENTAL CENTERS AT ABOUT 100 ALAMO LOCATIONS NATIONWIDE 9301140032 930114 BUSINESS BRIEF IMAGINE FILMS ENTERTAINMENT INC BID OF 235 MILLION FOR FIRM WINS FORMAL ENDORSEMENT IMAGINE FILMS ENTERTAINMENT INC LOS ANGELES SAID IT FORMALLY ENDORSED A 235 MILLION OFFER FROM FILMMAKERS RON HOWARD AND BRIAN GRAZER TO BUY ALL THE SHARES IN THE COMPANY THEY DON'T ALREADY OWN THE TWO FORMER IMAGINE EXECUTIVES WHO NOW CONTROL 54 OF IMAGINE STOCK WILL OFFER TO BUY ALL OTHER SHARES FOR 9 A SHARE IN NOVEMBER THE TWO MEN LEFT THE COMPANY THEY FOUNDED TO BEGIN A SIXYEAR PRODUCTION AGREEMENT WITH MCA INC'S UNIVERSAL PICTURES THE AGREEMENT ENABLES THEM TO CONTINUE THE MOVIE PROJECTS THEY'D BEEN WORKING ON AT IMAGINE INSTEAD OF HAVING TO START FROM SCRATCH MCA A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO IS FINANCING MOST OF THE OFFER SEVERAL SHAREHOLDERS HAVE COMPLAINED THE OFFER PRICE IS TOO LOW AND SHAREHOLDER LAWSUITS HAVE BEEN FILED IN DELAWARE CHANCERY COURT CHALLENGING THE TRANSACTION WHICH WAS FIRST PROPOSED LAST MAY APPARENTLY NO OTHER OFFERS WERE RECEIVED IN THE INTERIM COMPLETION OF THE TRANSACTION IS SUBJECT TO A TENDER OFFER 9301140031 930114 BUSINESS BRIEF CAMPBELL SOUP CO BID FOR AUSTRALIA'S ARNOTTS IS RAISED TO 639 A SHARE CAMPBELL SOUP CO RAISED ITS TAKEOVER OFFER FOR AUSTRALIAN COOKIE AND CRACKER MAKER ARNOTTS LTD TO 950 AUSTRALIAN DOLLARS US639 A SHARE FROM A880 A SHARE THE OFFER HAS ALSO BEEN DECLARED UNCONDITIONAL THE MOVE FOLLOWS A RULING BY THE NEW SOUTH WALES COURT OF APPEAL THAT UPHELD A 1985 AGREEMENT BETWEEN THE TWO COMPANIES UNDER WHICH CAMPBELL COULDN'T VOTE MORE THAN 149 OF ARNOTTS SHARES NO MATTER WHAT ITS INTEREST IN THE COMPANY CAMPBELL HAS 33 OF ARNOTTS AND WAS SEEKING TO LIFT ITS STAKE TO MORE THAN 50 THROUGH THE TAKEOVER OFFER BUT THAT IS NO LONGER A CONDITION OF THE OFFER THE AUSTRALIAN GOVERNMENT HAS SAID IT CAN'T BUY ALL OF ARNOTTS THE PREVIOUS OFFER VALUED ALL OF ARNOTTS AT A123 BILLION US8278 MILLION THE REVISED OFFER CAPITALIZES THE COMPANY AT ABOUT A132 BILLION 9301140030 930114 BUSINESS BRIEF ZYCAD CORP FIRM CUTS WORK FORCE 15 WILL POST 4THPERIOD LOSS ZYCAD CORP FREMONT CALIF SAID IT EXPECTS TO REPORT A LOSS FOR THE 1992 FOURTH QUARTER AND YEAR IN THE WAKE OF ORDER CANCELLATIONS AND PROJECT DEFERRALS BY ITS CLIENTS THE COMPANY SAID IT REDUCED ITS WORK FORCE BY 15 OR 40 EMPLOYEES AS A RESULT ANALYSTS HAD EXPECTED THE MAKER OF LOGIC SIMULATION COMPUTER PRODUCTS TO POST FOURTH QUARTER PROFIT OF 700000 TO 900000 OR FOUR TO FIVE CENTS A SHARE ON REVENUE OF ABOUT 14 MILLION THE COMPANY NOW EXPECTS TO REPORT A LOSS OF AN UNDETERMINED SIZE ON REVENUE OF 10 MILLION TO 11 MILLION BLAMING CONTINUING ECONOMIC DOLDRUMS IN THE COMPANY'S U S AND ASIAN MARKETS ZYCAD'S PRESIDENT AND CHIEF EXECUTIVE PHILLIPS W SMITH SAID THIS ISN'T A ONE QUARTER PHENOMENON BUT HE SAID THE REDUCTION IN JOBS IS HOPED TO RETURN THE COMPANY TO STEADY QUARTERLY PROFITS AT THE LOWER REVENUE LEVEL 9301140029 930114 DESERT REPRISE ALLIED AIR RAID ON IRAQ MAY SUBDUE BAGHDAD HELPING CLINTON TEAM BUSH ORDERS US BOMBING OF MISSILE SITES IN SOUTH WITH BRITISHFRENCH AID ANALYZING SADDAM HUSSEIN BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL THE USLED BOMBING RAID ON IRAQ MAY CHASTEN SADDAM HUSSEIN TEMPORARILY BUT IT WON'T SUBSTANTIALLY DIMINISH THE LONGTERM PROBLEM HE POSES FOR PRESIDENTELECT CLINTON AFTER WEEKS OF MOUNTING ANGER OVER A SERIES OF PROVOCATIVE ACTS BY IRAQ PRESIDENT BUSH YESTERDAY ORDERED US BOMBERS TO LAUNCH AN ATTACK TO KNOCK OUT IRAQI ANTIAIRCRAFT MISSILES IN SOUTHERN IRAQ THE RAID IN WHICH BRITISH AND FRENCH WARPLANES ALSO PARTICIPATED WAS DESIGNED TO SEND BAGHDAD THE MESSAGE THAT ALMOST PRECISELY TWO YEARS AFTER THE LAUNCH OF THE PERSIAN GULF WAR THE WORLD COMMUNITY STILL HAS THE WILL TO BRING IRAQ TO HEEL BUT THE RAID WAS STRICTLY LIMITED IN SCOPE THE ADMINISTRATION SAID ABOUT 80 ALLIED BOMBERS HIT ANTIAIRCRAFTMISSILE BATTERIES AND ASSOCIATED INFRASTRUCTURE IN SOUTHERN IRAQ AND THOUGH THE WHITE HOUSE PUBLICLY LEFT OPEN THE POSSIBILITY OF ADDITIONAL ACTIONS IF IRAQ CONTINUES TO DEFY UNITED NATIONS OR ALLIED ORDERS IN THE NEXT FEW DAYS OFFICIALS INDICATED THAT THERE ISN'T ANY CURRENT PLAN FOR FURTHER ATTACKS IT'S A COMPLETED OPERATION SAID WHITE HOUSE SPOKESMAN MARLIN FITZWATER THE NIGHTTIME RAID DIDN'T REPRESENT ANY REAL THREAT TO SADDAM HUSSEIN'S RULE AND HE MAY NOT READ IT AS MUCH MORE THAN ANOTHER SLAP ON THE WRIST MOREOVER THE IRAQI LEADER'S BEHAVIOR OVER THE YEARS SUGGESTS THAT HE NORMALLY REACTS TO SUCH SLAPS BY RETREATING TEMPORARILY ONLY TO REEMERGE BEFORE LONG TO AGAIN TEST THE LIMITS OF INTERNATIONAL RESOLVE IN A TELEVISED STATEMENT IN BAGHDAD THE IRAQI DICTATOR DECLARED THAT THE WESTERN POWERS CAME BACK FOR THE SAME PURPOSE AS IN THE GULF WAR TO IMPOSE COLONIALISM HE CALLED FOR IRAQI AIR DEFENSE FORCES TO TREAT ALL FOREIGN AIRCRAFT AS TARGETS REPORTS FROM THE GROUND IN BAGHDAD INDICATED THAT FAR FROM BEING STIRRED TO ACTION CITIZENS THERE WERE MAINLY RELIEVED THAT THE RAID WAS LIMITED TO MISSILE SITES IN THE SOUTH I THINK THIS POSTPONES THE REAL CONFRONTATION SAID PETER RODMAN A FORMER SENIOR STATE DEPARTMENT ADVISER ON MIDEAST ISSUES CURRENTLY AT THE FOREIGN POLICY INSTITUTE IN WASHINGTON AS LONG AS THE REGIME EXISTS SADDAM IS A STRATEGIC PROBLEM BUT THE BOMBING RAID PRECIPITATED BY REPEATED INCURSIONS INTO UNPROTECTED SPACE ALONG THE KUWAITI BORDER AND IRAQI MISSILE MOVEMENTS IN THE SOUTHERN NOFLY ZONE MAY HAVE CREATED A SHORT REPRIEVE THERE WERE INDICATIONS YESTERDAY THAT IRAQ ALREADY WAS BEATING A TACTICAL RETREAT TO AVOID GIVING MR BUSH A PRETEXT FOR MORE ACTION EVEN AS THE ALLIES' PLANES WERE IN THE AIR IRAQ'S AMBASSADOR TO THE UN WAS DECLARING THAT BAGHDAD HAD DECIDED TO ALLOW UN WEAPONS INSPECTORS TO RESUME FLYING THEIR AIRCRAFT INTO IRAQ AND WOULD STOP RAIDING UN OUTPOSTS ALONG THE KUWAITI BORDER IF IRAQ FOLLOWS THROUGH THOSE STEPS WOULD DEFUSE THE TWO ISSUES THAT ALONG WITH THE MOVEMENT OF MISSILES INTO RESTRICTED AREAS HAD COMPELLED THE US AND ITS ALLIES TO ACT EVEN THOUGH THE ATTACK WAS HIGHLY RESTRAINED IN COMPARISON WITH OPERATION DESERT STORM MR BUSH'S DECISION TO TAKE ACTION BEFORE LEAVING OFFICE STILL REPRESENTS SOMETHING OF A FAVOR TO MR CLINTON IT MAY AT LEAST GIVE THE PRESIDENTELECT SOME BREATHING ROOM IN DEALING WITH IRAQ BECAUSE AMERICA AND ITS ALLIES HAVE SHOWN ANEW THAT THEY ARE WILLING TO STRIKE THERE WILL BE LESS PRESSURE ON MR CLINTON TO ACT QUICKLY UPON TAKING OFFICE IN FACT MR BUSH COORDINATED THE MOVE WITH THE INCOMING CLINTON TEAM AND HIS ACTION GAVE THE NEW ADMINISTRATION THE CHANCE TO IDENTIFY ITSELF WITH THE MILITARY ACTION WITHOUT HAVING TO ACTUALLY MAKE THE TOUGH DECISIONS SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER DECLARED DURING CONFIRMATION HEARINGS YESTERDAY WE'VE REPEATEDLY MADE IT CLEAR THAT WE STAND SHOULDERTOSHOULDER WITH THE CURRENT ADMINISTRATION IN OUR DETERMINATION TO MAKE SURE THAT SADDAM HUSSEIN DOES NOT MISCALCULATE AMERICA'S RESOLVE AGAIN IN AN INTERVIEW WITH HIS HOMESTATE MEDIA MR CLINTON ADMITTED TO BEING PUZZLED BY SADDAM HUSSEIN'S MOTIVES AND SAID HIS OWN ACTIONS TOWARD THE IRAQI LEADER WILL BE DETERMINED BY HOW HE BEHAVES INVESTORS APPEARED TO DISREGARD THE MILITARY RAID THE DOW JONES INDUSTRIAL AVERAGE FELL 108 POINTS TO 326356 IN HEAVY TRADING BOND PRICES ROSE AND THE DOLLAR ENDED MIXED BUSH ADMINISTRATION AIDES ACKNOWLEDGED THAT THE MILITARY ACTION WAS MODEST IN SCOPE BUT SAID IT WAS DESIGNED THAT WAY IN AN EFFORT TO STAND UP TO IRAQ WITHOUT RATTLING THE NERVES OF OTHER COUNTRIES ALIGNED AGAINST IRAQ WHO ARE MORE QUEASY ABOUT BIG US MILITARY ACTION YOU DON'T WANT TO MAKE YOUR BEHAVIOR THE ISSUE SAYS ONE SENIOR BUSH ADVISER BY MAKING IT MODEST YOU MINIMIZE THE CHANCE OF COALITION PROBLEMS IN ADVANCE OF COURSE THE SITUATION COULD GET STICKY VERY QUICKLY FOR MR CLINTON IF IRAQ DECIDES TO TAKE STEPS TO RETALIATE FOR THE AERIAL ATTACK IN THEORY IRAQ HAS SEVERAL OPTIONS US INTELLIGENCE ANALYSTS ESTIMATE THAT IRAQ STILL HAS AS MANY AS 200 SCUD MISSILES HIDDEN IN CACHES THAT HAVE ELUDED UN WEAPONS INSPECTORS AND THOSE COULD BE FIRED AT SAUDI ARABIA TO PUNISH IT FOR ALLOWING ITS BASES TO BE USED BY PLANES THAT PARTICIPATED IN THE ATTACK IRAQ COULD TRY TO LAUNCH TERRORIST ACTIONS THAT DISRUPT THE ANNUAL PILGRIMAGE OF MUSLIMS TO SACRED ISLAMIC SITES IN SAUDI ARABIA DURING THE ISLAMIC HOLY MONTH OF RAMADAN WHICH BEGINS IN LATE FEBRUARY OR SADDAM HUSSEIN COULD CHOOSE TO TAKE OUT HIS ANGER BY AGAIN LAUNCHING MILITARY RAIDS AGAINST KURDS IN NORTHERN IRAQ ANY OF THOSE ACTIONS WOULD REPRESENT CLEAR CHALLENGES TO THE USLED COALITION THAT HAS BEEN TRYING TO CONTAIN IRAQ BUT MOST ANALYSTS DOUBT THAT SADDAM HUSSEIN WILL RESORT TO SUCH ACTIONS I'M INCLINED TO THINK HE'LL JUST ABSORB THE BLOW AND THEN WAIT AND SEE SAYS WILLIAM QUANDT A MIDDLE EAST ANALYST AT THE BROOKINGS INSTITUTION A MORE LIKELY COURSE OF IRAQI ACTION WOULD BE TO USE THE ATTACK TO GENERATE SYMPATHY AND SUPPORT IN THE ARAB WORLDWHERE DISTRUST OF THE WEST HAS BEEN GROWING IN SOME STATESAND AMONG THIRD WORLD NATIONS SYMPATHETIC TO BAGHDAD'S ARGUMENTS THAT THE US IS NO LONGER ENFORCING UN SANCTIONS BUT TRYING TO DESTROY IRAQI SOVEREIGNTY OVER ITS OWN COUNTRY HAVING MADE THAT POINT SADDAM HUSSEIN COULD BEGIN AGITATING LATER TO GET UN ECONOMIC SANCTIONS LIFTED IT WOULD BE OUT OF CHARACTER FOR HIM NOT TO BEGIN PROBING AGAIN SOMEWHERE SOMETIME SOON MR QUANDT SAYS THE US IS ACTING TO REDUCE THE CHANCE OF ANY NEW IRAQI PROBES ACROSS THE STILLDISPUTED BORDER WITH KUWAIT THE WHITE HOUSE ANNOUNCED THAT IT WILL QUICKLY DISPATCH A BATTALION OF ABOUT 1000 ARMY TROOPS TO KUWAIT AS A SIGNAL OF US RESOLVE THE TROOPS WHO WILL BE AIRLIFTED FROM FORT HOOD TEXAS WILL AUGMENT A CONTINGENT OF ABOUT 300 SPECIALFORCES SOLDIERS WHO WERE SCHEDULED TO CONDUCT A MILITARY EXERCISE IN KUWAIT THE TROOPS WILL HAVE AT THEIR DISPOSAL MILITARY EQUIPMENT THE US LEFT IN STORAGE IN KUWAIT TO BE USED IN JUST SUCH A CRISIS THOUGH IRAQI PROPAGANDA CONTINUES TO CLAIM THAT KUWAIT IS RIGHTFULLY IRAQI TERRITORY THERE ISN'T ANY SIGN THAT IRAQ IS PREPARING ANY SERIOUS MOVE TO TRY TO RECAPTURE THE COUNTRY STILL IRAQ HAS CONSISTENTLY REFUSED TO ACCEPT A NEWLY DEMARCATED FRONTIER WITH KUWAIT DRAWN UP BY UN SPECIALISTS AND THE US TROOPS IN KUWAIT WILL BE A SIGNAL THAT IRAQ SHOULD STOP HARASSING UN BORDER POSTS THE PRESENCE OF THE BATTALION ALSO SHOULD PROVIDE A CUSHION FOR MR CLINTON AS HE ENTERS OFFICE MR CLINTON HAS BARELY BEGUN STAFFING HIS NATIONALSECURITY TEAM AND COULD HAVE EARLY PROBLEMS MAKING AND EXECUTING DECISIONS ON SUCH DELICATE QUESTIONS AS DEPLOYMENT OF MORE US TROOPS HE NOW WILL INHERIT AT LEAST A SYMBOLIC FORCE ON THE GROUND NEAR KUWAIT TO SEND A TANGIBLE SIGNAL OF CONTINUING AMERICAN DETERMINATION THE IMMEDIATE JUSTIFICATION FOR THE AIR STRIKE WAS THE MOVEMENT OF IRAQI BATTERIES OF SOVIETMADE SURFACETOAIR MISSILES IN SOUTHERN IRAQ THE MISSILES HAD BEEN MOVED INTO THE AREA THIS MONTH AFTER PATROLLING US FORCES DOWNED AN IRAQI JET FLYING IN PROHIBITED AIR SPACE THE US AND ITS ALLIES CALLING THE ACTIVATED BATTERIES OF MISSILES A THREAT TO AMERICAN AIRCRAFT FLYING SURVEILLANCE MISSIONS WARNED IRAQ TO REMOVE THE ARMS INITIALLY IT APPEARED THAT IRAQ HAD COMPLIED BUT ACCORDING TO US OFFICIALS WITH ACCESS TO INTELLIGENCE REPORTS THE MISSILE BATTERIES WERE SIMPLY MOVED TO NEW SITES IN SOUTHERN IRAQ AND WEREN'T TAKEN OUT OF THE SENSITIVE AREA WHERE US PLANES PATROL AND AT LEAST ONE OF THE BATTERIES HAD BEEN SET UP IN A NEW LOCATION AND APPEARED READY TO BE MADE ACTIVE IN THE PAST FEW DAYS ONE SENIOR US OFFICIAL SAID AS A RESULT MR BUSH DECIDED ON MONDAY TO TAKE ACTION THE ATTACK COULD HAVE BEEN LAUNCHED ANY TIME THIS WEEK AND WOULD HAVE BEEN LAUNCHED TUESDAY IF POOR WEATHER HADN'T PERSUADED COMMANDERS TO POSTPONE IT GEN JOSEPH HOAR COMMANDER OF THE US CENTRAL COMMAND WHICH IS OVERSEEING THE OPERATION SAID HE HAD RECEIVED CAUTIOUSLY OPTIMISTIC REVIEWS THAT THE ALLIED PLANES MANAGED TO HIT MOST OF THE IRAQI SITES TARGETED EXCEPT FOR SOME LIGHT ANTIAIRCRAFT FIRE THERE WAS NO IRAQI MILITARY RESPONSE TO THE RAID WHICH LASTED ABOUT 30 MINUTES SENIOR US MILITARY OFFICERS SAID HE DECLINED TO PREDICT SADDAM HUSSEIN'S NEXT MOVES BUT NOTED THAT THE IRAQI ARMY OF 400000 IS STILL THE LARGEST FORCE IN THE REGION HE ADDED THAT THE PART THAT'S DIFFICULT TO ASSESS IS THE WILL OF THE ARMY THE DECISION TO MOVE WAS ALSO INFLUENCED IN PART BY ANOTHER PREVIOUSLY UNDISCLOSED PROVOCATION DEFENSE OFFICIALS SAID THAT IRAQI MILITARY AIRCRAFT ON JAN 2 MADE THREATENING MOVES TOWARD AN AMERICAN U2 SPY PLANE THAT HAS BEEN FLYING REGULARLY OVER SOUTHERN IRAQ TO MONITOR IRAQI COMPLIANCE WITH A UN RESOLUTION BANNING ATTACKS ON SHIITE MUSLIMS IN THE REGION THE IRAQI AIRCRAFT WAS CHASED OFF BY US FIGHTER JETS IN THE REGION BUT THE INCIDENT COMING AFTER OTHER IRAQI INCURSIONS INTO PROHIBITED AIR SPACE IN SOUTHERN IRAQ AND THE EXPLOSION OF IRAQIPLANTED BOMBS ON UN CONVOYS IN NORTHERN IRAQ BOLSTERED THE AMERICAN PERCEPTION THAT AN UNACCEPTABLE PATTERN OF IRAQI BEHAVIOR WAS DEVELOPING MR BUSH HAD DISCUSSED THE GENERAL THRUST OF A MILITARY REPRISAL AGAINST IRAQ WITH FRENCH PRESIDENT FRANCOIS MITTERRAND AND BRITISH PRIME MINISTER JOHN MAJOR IN MEETINGS AROUND THE CHRISTMAS AND NEW YEAR'S HOLIDAYS MR FITZWATER SAID THOSE DISCUSSIONS LEFT LITTLE DOUBT THAT FRANCE AND BRITAIN WERE WILLING TO MOVE ALONGSIDE THE US RUSSIA DEMONSTRATED ITS SUPPORT BY JOINING THE WESTERN ALLIES IN SIGNING AN ULTIMATUM DELIVERED TO IRAQ ORDERING REMOVAL OF ANTIAIRCRAFT MISSILES FROM SOUTHERN IRAQ AND SAUDI ARABIA'S KING FAHD WAS SIMILARLY SUPPORTIVE SAUDI DIPLOMATS SAY THE KINGDOM HAD NO QUALMS ABOUT LETTING ITS AIRFIELDS BE USED AS LAUNCHING PADS FOR THE ATTACK MILITARY OFFICIALS SAID WESTERN RESOLVE TO RESPOND TO IRAQI PROVOCATIONS STIFFENED AFTER DEC 27 WHEN AN IRAQI MIG25 ATTEMPTED TO DOWN A US F15 LATER THAT DAY A DIFFERENT MIG25 CONFRONTED ANOTHER US AIRCRAFT AND WAS SHOT DOWN THAT WAS FOLLOWED BY THE MISSILE MOVEMENTS IN SOUTHERN IRAQ ROUGHLY 80 ATTACK AIRCRAFT PARTICIPATED IN THE MISSION WITH THE HELP OF ABOUT 30 ADDITIONAL SUPPORT AIRCRAFT US MILITARY OFFICERS SAID THE AIRCRAFT TOOK OFF FROM BASES IN SAUDI ARABIA AND FROM THE AIRCRAFT CARRIER USS KITTY HAWK THEY STRUCK FOUR FIXED ANTIAIRCRAFT MISSILE SITES AND SEVERAL MORE MOBILE MISSILE INSTALLATIONS ALL THE TARGETS WERE BELOW THE 32ND PARALLEL THE LINE BELOW WHICH THE US BRITAIN AND FRANCE LAST SUMMER DECLARED IRAQI MILITARY AIRCRAFT WOULD BE BANNED FROM FLYING THIS ZONE WAS CREATED TO PREVENT IRAQI WARPLANES FROM FIRING ON SHIITE MUSLIMS IN THE REGION WHO OPPOSED CONTINUED RULE BY SADDAM HUSSEIN'S REGIME US PLANES CARRIED OUT THE BULK OF THE FLIGHTS BUT BRITISH DIPLOMATS SAID THAT FOUR OF THEIR NATION'S TORNADO GROUNDATTACK AIRCRAFT PARTICIPATED AS WELL ATTACKING COMMAND AND CONTROL FACILITIES WITH LASERGUIDED BOMBS WHATEVER SHORTRANGE IMPROVEMENTS THE RAID MAY PROMPT IN IRAQI BEHAVIOR THERE IS AMPLE REASON TO EXPECT THAT SADDAM HUSSEIN WILL SOON LOOK AGAIN FOR WAYS TO CHALLENGE BOTH THE INTERNATIONAL RESTRICTIONS THAT LIMIT HIS CONTROL OVER NORTHERN AND SOUTHERN IRAQ AS WELL AS THE ECONOMIC SANCTIONS THAT ARE HOBBLING HIS NATION AND THE NEXT ROUND OF CHALLENGES ARE LIKELY TO BE MR CLINTON'S PROBLEM EVEN IF HE HAS LITTLE HOPE OF ENDING THE SANCTIONS OR EASING ALLIED RESTRICTIONS ON HIS MILITARY'S MOVEMENT SADDAM HUSSEIN PROBABLY WILL FEEL COMPELLED TO CONTINUE CHALLENGING INTERNATIONAL CURBS TO ILLUSTRATE HIS VIRILITY TO THE IRAQI PEOPLE HE HAS A NEED TO SHOW DOMESTICALLY HE IS IN CHARGE SAYS RICHARD MURPHY A FORMER ASSISTANT SECRETARY OF STATE FOR MIDDLE EASTERN AFFAIRS BY SHOWING TOUGHNESS MR MURPHY SAYS THE IRAQI LEADER BOTH DISTRACTS ATTENTION FROM HIS COUNTRY'S SEVERE ECONOMIC PROBLEMS BUT ALSO SENDS A MESSAGE TO IRAQIS THAT IF YOU STAY WITH ME IT WILL BE ALL RIGHT BUT THE LAST THING YOU SHOULD DO IS BETRAY ME MOREOVER SADDAM HUSSEIN COULD DECIDE TO MOUNT A CHALLENGE EARLY IN THE CLINTON TERM BECAUSE HE MAY CONCLUDE THAT EVEN THOUGH THE ALLIES JUST STRUCK AT IRAQ THE EPISODE DISPLAYED SOME UNDERLYING WEAKNESSES IN THE INTERNATIONAL COALITION MY GUESS IS THAT HE WILL CONCLUDE THAT THERE IS LESS ENTHUSIASM ABOUT JOINING THE COALITION NOW THAN THERE WAS TWO YEARS AGO MR QUANDT SAYS THOUGH AMERICAN FRENCH AND BRITISH FORCES AGAIN ACTED IN CONCERT AND HAD THE BACKING OF SAUDI ARABIA THERE HAS BEEN A DECREASE IN ENTHUSIASM IN SOME QUARTERS AT THE UN CHINA HAS PUBLICLY DISTANCED ITSELF FROM THE NOFLY ZONE THE ALLIES DECLARED IN SOUTHERN IRAQ SUGGESTING THAT IT GOES BEYOND THE SCOPE OF UN RESOLUTIONS AND REPRESENTS AN INFRINGEMENT OF IRAQI SOVEREIGNTY OTHER THIRD WORLD NATIONS ARE SIMILARLY COOL TO THE NOTION OF A USLED ALLIANCE DECLARING WHERE A COUNTRY CAN MOVE PLANES AND EQUIPMENT WITHIN ITS BORDERS TO THE EXTENT THAT SADDAM HUSSEIN CAN USE THE RAID TO PORTRAY THE DEBATE OVER IRAQ INTO AN ARGUMENT OVER IRAQI SOVEREIGNTY RATHER THAN IRAQI COMPLIANCE WITH UN RESOLUTIONS THAT ENDED THE PERSIAN GULF WAR THE IRAQI LEADER WILL BE ON FIRMER POLITICAL GROUND MOREOVER AN INCREASING NUMBER OF ARAB ANALYSTS ARE ARGUING THAT IN THE LONG RUN THE REAL THREAT IN THE MIDDLE EAST DOESN'T COME FROM SADDAM HUSSEIN BUT FROM A RESURGENT IRAN IN FACT MR QUANDT NOTES SOME PERSIAN GULF STATES HAVE BEEN SENDING OVERTURES TOWARD IRAQ IN RECENT MONTHS AND IN NORTHERN IRAQ TURKEY CONTINUES TO COOPERATE WITH THE USLED EFFORT TO PATROL KURDISH AREAS OF IRAQ BUT IS GROWING MORE COOL TO THE OPERATION PARTLY OUT OF TURKISH SENSITIVITIES THE US DECIDED AGAINST ATTACKING TARGETS IN NORTHERN IRAQ IN YESTERDAY'S RAID AND DIDN'T ASK TO USE TURKISH FACILITIES ONE INDICATOR SADDAM HUSSEIN WILL BE WATCHING IN DECIDING ON HIS COURSE NOW WILL BE THE REACTION OF PEOPLE ELSEWHERE IN THE ARAB WORLD THERE ARE LIKELY TO BE PREDICTABLE OUTCRIES FROM ARAB NATIONALISTS AND ISLAMIC FUNDAMENTALISTS AGAINST AN AMERICANLED STRIKE IN THE REGION AND THE COMING ISLAMIC HOLY MONTH MAY INTENSIFY THOSE CRIES BUT ONE SAUDI DIPLOMAT PREDICTS THAT THE REACTION IN THE ARAB WORLD OVERALL WILL BE A COLLECTIVE YAWN THOMAS E RICKS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9301140027 930114 COUNTERPOINT MR CLINTON STRIKE A BLOW AT SECRECY BY STANLEY I KUTLER THE CLINTON TRANSITION LAWYERS REPORTEDLY ARE PREPARING A STACK OF EXECUTIVE ORDERS FOR THE NEW PRESIDENT TO SIGN ON JAN 20 AMONG THESE ARE ONES TO CANCEL SOME ISSUED BY HIS PREDECESSORS INCLUDING BANS ON FETAL TISSUE RESEARCH AND ON ABORTION COUNSELING AT FEDERALLY FUNDED BIRTH CONTROL CLINICS ACCORDING TO BRUCE REED BILL CLINTON'S DEPUTY TRANSITION DIRECTOR FOR DOMESTIC POLICY MR CLINTON IS EAGER TO UNDO SOME OF THE DAMAGE THAT'S BUILT UP OVER THE LAST 12 YEARS MR CLINTON ALSO HAS AN OPPORTUNITY TO STRIKE A BLOW AT SECRECY IN THE WAKE OF WATERGATE OFFICIAL SECRECY AND DECEIT HAVE AFFECTED IMPORTANT PUBLIC ISSUES WITNESS THE IRANCONTRA AFFAIR AND THE CONTROVERSY OVER GEORGE BUSH'S PREAUGUST 1990 IRAQ POLICY DETERMINING CONTEMPORARY MEANING FOR SUCH EVENTS IS DIFFICULT ENOUGH BUT WE ALSO ARE HAMPERED IN GAINING HISTORICAL UNDERSTANDING SINCE THE PRINCIPALS WHO POSSIBLY PERPETRATED WRONGDOING OFTEN HAVE SUPPRESSED RELEVANT DOCUMENTS AFTER JAN 20 GEORGE BUSH COULD DEFY THE INQUIRIES OF CONGRESSMEN AND HISTORICAL RESEARCHERS ALIKE WHO WISH TO PURSUE THE TRUTH AND MEANING OF IRANCONTRA EXECUTIVE ORDER 12667 PERMITS HIM TO INVOKE EXECUTIVE PRIVILEGE TO PREVENT ANY EMBARRASSING REVELATIONS FROM HIS OFFICIAL PAPERS THANKS TO MR BUSH'S PARDON OF CASPAR WEINBERGER THE IRANCONTRA AFFAIR UNDOUBTEDLY WILL ELUDE ANY FURTHER LEGAL PROCEEDINGS OF ANY CONSEQUENCE PRESIDENT CLINTON WILL DO WELL TO OVERTURN EXECUTIVE ORDER 12667 AND PERMIT THE NATION TO LEARN AND SETTLE ITS HISTORY THE ORDER WAS APPROVED ON JAN 18 1989 IN THE WANING HOURS OF THE REAGAN ADMINISTRATION IT BLATANTLY UNDERCUT PROVISIONS OF THE PRESIDENTIAL RECORDS ACT OF 1978 REQUIRING FORMER PRESIDENTS TO RELINQUISH THEIR PAPERS TO THE NATIONAL ARCHIVES AND AUTHORIZING CONGRESSIONAL ACCESS WHENEVER INFORMATION WAS NEEDED FOR THE CONDUCT OF LEGISLATIVE BUSINESS MR REAGAN'S ORDER VESTS FORMER PRESIDENTS WITH THE POWER TO INVOKE EXECUTIVE PRIVILEGE OVER THEIR PAPERS DENYING ANY USE OF THEM ON PERSONAL OR NATIONAL SECURITY GROUNDS MR REAGAN'S ACTION PROVIDED PROTECTION TO AN EXCLUSIVE CLUB OF WHICH HE WAS SOON TO BECOME A MEMBER THE REAGAN ADMINISTRATION'S OFFICE OF LEGAL COUNSEL OLC IN THE JUSTICE DEPARTMENT HAD ISSUED A MEMORANDUM IN 1986 AMENDING THE NATIONAL ARCHIVES' REGULATIONS REGARDING THE USE OF THE NIXON PAPERS SEEMINGLY DESIGNED TO PROTECT THE EVERLITIGATING EXPRESIDENT THE OLC ADDENDUM PROVIDED FUTURE PROTECTION FOR MR REAGAN AND HIS AIDES DESPITE HEATED CONGRESSIONAL PROTEST THE ADMINISTRATION IMPOSED ITS NEW POLICY BUT WAS SUCCESSFULLY CHALLENGED IN THE COURTS IN AN EXTRAORDINARY OPINION FOR THE DC COURT OF APPEALS IN 1988 JUDGE LAURENCE SILBERMAN REJECTED THE ADMINISTRATION'S EXTRAVAGANT CLAIMS INCLUDING THE ARGUMENT THAT THE MEMORANDUM WAS MERELY AN ADMINISTRATIVE MATTER NOT SUBJECT TO JUDICIAL CONSIDERATION EXECUTIVE PRIVILEGE BELONGS TO INCUMBENTS JUDGE SILBERMAN WROTE NO MAPS CHART THE DOCTRINE FOR THOSE IN RETIREMENT FORCED OR OTHERWISE NEVERTHELESS LESS THAN A YEAR LATER MR REAGAN'S EXECUTIVE ORDER 12667 DEFIED BOTH CONGRESS AND THE COURTS AND LEGITIMATED A NEW MAP FOR THE PRESIDENT AND THOSE WHO JOINED HIM IN RETIREMENT A CLINTON EXECUTIVE ORDER REVERSING ORDER 12667 WOULD HAVE BOTH SYMBOLIC AND SUBSTANTIVE VALUE FOR THE NEW PRESIDENT AND THE NATION THE PROSPECT SEEMS ENCOURAGING MR CLINTON SAID DURING THE CAMPAIGN THAT HE WOULD HAVE A STRONG PREFERENCE FOR PUBLIC DISCLOSURE IN CONSIDERING THE EXPANSION OF THE FREEDOM OF INFORMATION ACT IF MR CLINTON WILL UNDO MR REAGAN'S MISCHIEF THE NATIONAL ARCHIVES CAN FREELY WORK WITHOUT INTERFERENCE FROM FORMER PRESIDENTS WHO SEEK TO PRIVATIZE PUBLIC RECORDS BEYOND THE STATUTORY NORMS AND CONCEDED CATEGORIES OF EXEMPTION TO DO SO OF COURSE MR CLINTON MUST BE WILLING TO MAINTAIN AN OPEN HISTORICAL RECORD OF HIS OWN NINETEEN SEVENTYTWO WAS RICHARD NIXON'S LAST CAMPAIGN MAKE IT THE BEST HE TOLD HIS AIDE HR HALDEMAN TWENTY YEARS LATER GEORGE BUSH PROMISED THE SAME BUT OLD CAMPAIGNERS DO NOT FADE AWAY FORMER PRESIDENTS LIKE THE ANCIENT MARINER ARE FOREVER TUGGING AT OUR SLEEVE ANXIOUS TO TELL US THEIR STORY AND IMPOSE A HISTORY OF THEIR CHOOSING MR CLINTON PERHAPS A MORE SECURE PERSONALITY THAN SOME RECENT PREDECESSORS SHOULD NOT DENY US THE OPPORTUNITY TO KNOW THE FACTS TO KNOW THE TRUTH OF HIS PRESIDENCY AND OTHERS MR KUTLER IS A PROFESSOR AT THE UNIVERSITY OF WISCONSIN AND THE AUTHOR OF THE WARS OF WATERGATE NORTON 9301140026 930114 ALCOA TO SHUT LINE TEMPORARILY PITTSBURGH ALUMINUM CO OF AMERICA SAID IT WILL CLOSE TEMPORARILY ONE OF FIVE ALUMINUM SMELTING LINES AT ITS WENATCHEE WASH PLANT AND MAY LAY OFF ABOUT 75 WORKERS AS PREVIOUSLY REPORTED ALCOA AND OTHER ALUMINUM MAKERS FACE CUTBACKS AT THEIR SMELTERS IN THE PACIFIC NORTHWEST BECAUSE OF A 25 REDUCTION IN POWER SUPPLIED OVER THE NEXT SIX WEEKS BY THE BONNEVILLE POWER ADMINISTRATION BECAUSE OF DROUGHT CONDITIONS THE SMELTING LINE HAD A CAPACITY OF 42000 METRIC TONS OF PRIMARY ALUMINUM A YEAR ALCOA SAID IT WON'T TAKE ANY CHARGE TO IDLE THE LINE WHICH ALCOA EXPECTS EVENTUALLY TO OPEN AGAIN 9301140025 930114 BUSINESS BRIEF CIT GROUP HOLDINGS INC COMPANY POSTS 81 RISE IN NET IN '92 TO 1623 MILLION CIT GROUP HOLDINGS INC SAID IT POSTED AN 81 INCREASE IN NET INCOME IN 1992 MAINLY A RESULT OF HIGHER NET INTEREST MARGINS AS WELL AS HIGHER FEES AND OTHER NONINTEREST REVENUE THE ASSETBASED FINANCE COMPANY WHICH IS 60OWNED BY DAIICHI KANGYO BANK LTD OF JAPAN AND 40OWNED BY CHEMICAL BANKING CORP SAID NET INCOME FOR THE YEAR ROSE TO 1623 MILLION FROM 1501 MILLION THE RISE MARKS THE FIFTH CONSECUTIVE YEAR OF EARNINGS IMPROVEMENTS BUT AT A SLOWER RATE THAN IN 1991 WHEN NET ROSE 12 AMONG CIT'S BUSINESSES ARE CAPITAL EQUIPMENT FINANCING FACTORING AND INDUSTRIAL FINANCING 9301140024 930114 WHO'S NEWS FUQUA INDUSTRIES INC FUQUA INDUSTRIES INC ATLANTA THOMAS N WARNER AND JACK P ETHERIDGE ARE RESIGNING FROM THE COMPANY'S BOARD FOR PERSONAL REASONS MR ETHERIDGE A 65YEAROLD FORMER JUDGE SAID HE IS SCALING BACK OUTSIDE COMMITMENTS TO CONCENTRATE ON HIS JOB WITH AN ARBITRATION SERVICE MR WARNER A CALIFORNIA INVESTOR COULDN'T BE REACHED THE COMPANY SAID MR WARNER 61 HAD INDICATED THAT TRAVELING TO ATLANTA FOR BOARD MEETINGS DIDN'T ALLOW HIM TIME TO PURSUE OTHER OPPORTUNITIES FUQUA WHICH HAS INTERESTS IN PHOTOFINISHING LAWN AND GARDEN EQUIPMENT AND SPORTING GOODS SAID JOHN E ADERHOLD AND JOHN P IMLAY JR WILL BE NOMINATED MONDAY TO FILL THE VACANT SEATS MR ADERHOLD 67 IS COCHAIRMAN OF THE CORP OF OLYMPIC DEVELOPMENT IN ATLANTA AND MR IMLAY IS CHAIRMAN OF DUN & BRADSTREET SOFTWARE SERVICE INC AN ATLANTABASED UNIT OF DUN & BRADSTREET CORP NEW YORK 9301140023 930114 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH JOHN J SPINOLA 49 YEARS OLD WAS NAMED TO THE NEW POST OF VICE PRESIDENT OF OPERATIONS FOR GROUP W TELEVISION A DIVISION OF THIS DIVERSIFIED CONCERN'S WESTINGHOUSE BROADCASTING CO UNIT MR SPINOLA WAS FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF GROUP W'S WBZTV IN BOSTON AN NBC AFFILIATE AND ITS SISTER RADIO STATION DEBRA K ZEYEN 45 HAS BEEN NAMED TO SUCCEED MR SPINOLA AS VICE PRESIDENT AND GENERAL MANAGER OF WBZTV A NEW GENERAL MANAGER AT THE RADIO STATION WILL BE NAMED LATER A COMPANY SPOKESMAN SAID MS ZEYEN HAD BEEN A VICE PRESIDENT OF GROUP W BOTH CHANGES ARE EFFECTIVE FEB 1 9301140022 930114 WHO'S NEWS REPUBLIC CAPITAL GROUP INC REPUBLIC CAPITAL GROUP INC MILWAUKEE WIS THIS FINANCIAL HOLDING COMPANY SAID ITS PRESIDENT ROBERT L DESMOND 52 YEARS OLD RESIGNED MONDAY IT SAID MR DESMOND ALSO RESIGNED AS A DIRECTOR FROM ITS REPUBLIC CAPITAL BANK AND PEERLESS FEDERAL SAVINGS BANK MR DESMOND'S DEPARTURE FOLLOWS THE COMPANY'S APPROVAL LAST MONTH OF ITS PENDING MERGER INTO TCF FINANCIAL CORP A DELAWARECHARTERED THRIFT HOLDING COMPANY 9301140021 930114 BUSINESS BRIEF SEARS ROEBUCK & CO BUSINESS CENTERS SUBSIDIARY TO BE PURCHASED BY INACOM SEARS ROEBUCK & CO CHICAGO SAID IT IS SELLING ITS COMPUTER AND COMMUNICATIONS SYSTEMS UNIT TO INACOM CORP FOR AN UNDISCLOSED AMOUNT OF CASH SEARS SAID ITS SEARS BUSINESS CENTERS UNIT DOESN'T FIT WELL WITH THE OVERHAUL OF ITS MERCHANDISE GROUP THAT CALLS FOR THE COMPANY TO FOCUS MORE CLOSELY ON ITS CORE RETAILING BUSINESSES THE BUSINESS CENTERS UNIT WHICH SELL PRIMARILY TO COMMERCIAL CLIENTS HAD 1992 REVENUE OF 510 MILLION THE AGREEMENT SET TO BE COMPLETED IN 30 DAYS CALLS FOR INACOM TO ACQUIRE CERTAIN FIXED ASSETS OF SEARS BUSINESS CENTERS BUT NOT ITS RECEIVABLES OR ITS PARTS INVENTORY INACOM OMAHA NEB SAID IT WILL CONTINUE OPERATING THE MAJORITY OF THE 49 SEARS BUSINESS CENTERS OUTLETS IT IS ACQUIRING THE AGREEMENT ALLOWS THE OUTLETS TO CONTINUE OPERATING UNDER THE SEARS NAME FOR FOUR MONTHS THE TRANSACTION DOESN'T INVOLVE ANY OF THE 174 OFFICE CENTERS THAT SELL COMPUTER AND ELECTRONIC EQUIPMENT IN SEARS DEPARTMENT STORES 9301140020 930114 OTC FOCUS COMPOSITE INDEX HITS RECORD 68678 UP 733 ON RALLY IN TECHNOLOGY STOCKS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A TECHNOLOGY STOCK RALLY LED BY INTEL'S 8 RISE AND ADOBE SYSTEMS' 22 LEAP PROPELLED THE OVERTHECOUNTER MARKET TO A NEW RECORD INTEL LED THE WHOLE MARKET UP BRINGING ALMOST ALL THE THE BIG TECHNOLOGY STOCKS UP WITH IT SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE THERE WAS BIG INSITUTIONAL BUYING IT WAS INFECTIOUS THE NASDAQ COMPOSITE INDEX JUMPED 733 OR 108 TO 68678 SURPASSING MONDAY'S RECORD HIGH OF 68240 ADVANCING ISSUES OUTNUMBERED DECLINERS 1422 TO 1151 ON TOTAL VOLUME OF 2447 MILLION SHARES UP FROM TUESDAY'S 2338 MILLION THE US BOMBING OF IRAQ LEFT INVESTORS UNFAZED EVEN WHEN WE DID ATTACK IRAQ THE MARKET DIDN'T SEEM TO BUDGE AT ALL ON ANY OF THAT NEWS SAID LAWRENCE RICE HEAD OF NASDAQ TRADING AT WEDBUSH MORGAN SECURITIES IN LOS ANGELES INSTEAD INVESTORS FOCUSED ON INTEL WHICH POPPED UP 8 1/8 TO 110 1/8 AFTER REPORTING STRONGERTHANEXPECTED FOURTHQUARTER EARNINGS PROFIT WAS 197 A SHARE FOR THE QUARTER WELL AHEAD OF WALL STREET ESTIMATES OF 170 TO 178 AND MORE THAN DOUBLE THE YEARAGO QUARTER'S EARNINGS OF 90 CENTS A SHARE THE STOCK HAS GAINED 27 SINCE MONDAY OF LAST WEEK MICROSOFT ROSE 1 1/2 TO 91 1/4 THE TOTAL STOCKMARKET VALUE OF MICROSOFT THUS ENDED THE DAY IN A DEAD HEAT WITH INTERNATIONAL BUSINESS MACHINES AT ALMOST 273 BILLION FULLY DILUTED ON THE BASIS OF COMMON STOCK OUTSTANDING HOWEVER IBM IS STILL AHEAD OF MICROSOFT'S 256 BILLION MICROSOFT IS EXPECTED TO POST FISCAL SECONDQUARTER EARNINGS AFTER THE STOCK MARKET CLOSES TODAY MICROSOFT HAS DISCOURAGED ANALYSTS FROM LOOKING FOR AN UPSIDE SURPRISE IN ITS RESULTS SAID GOLDMAN SACHS & CO ANALYST RICK SHERLUND THE AVERAGE EARNINGS ESTIMATE FOR THE QUARTER IS 78 CENTS A SHARE ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM ANOTHER SOFTWARE COMPANY ADOBE SYSTEMS SURGED 7 1/4 TO 40 1/4 THE MOUNTAIN VIEW CALIF COMPANY REPORTED FOURTHQUARTER EARNINGS OF 37 CENTS A SHARE INCLUDING A CHARGE OF 16 CENTS A SHARE FOR THE WRITEOFF OF THE INVESTMENT IN A REAL ESTATE PARTNERSHIP THE EARNINGS RESULTS REVERSED NEGATIVE EXPECTATIONS TRADERS SAID TRADERS SAID THE PRICE UPSURGE WAS BOOSTED STRONGLY BY SHORT SELLERS WHO BET ON STOCKS TO DECLINE BUYING BACK SHARES TO COVER THEIR BORROWED POSITIONS TRADERS SAID THERE IS A LOT OF NEW MONEY FLOWING INTO THE STOCK APPLE COMPUTER REBOUNDED 2 TO 63 1/2 BMC SOFTWARE CLIMBED 1 3/8 TO 81 1/2 AND SUN MICROSYSTEMS EDGED UP 5/8 TO 37 3/8 BUT NOT ALL TECHNOLOGY STOCKS ENJOYED THE EUPHORIA DISKDRIVE COMPANIES CONTINUE TO FALL FROM THEIR HIGHS SEAGATE TECHNOLOGY DROPPED 1 7/8 EVEN THOUGH IT REPORTED EARNINGS OF 91 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED JAN 1 IN LINE WITH ANALYST EXPECTATIONS HAMBRECHT & QUIST ANALYST TODD BAKAR SAID WORRIES ABOUT SEAGATE PRODUCTS BEING THE TARGET OF INCREASING PRICE COMPETITION ARE VALID THERE IS STILL A GREAT DEMAND FOR THE PRODUCT BUT THE SUPPLY HAS COME ON VERY VERY RAPIDLY HE SAID SEAGATE DIDN'T MAKE A PROJECTION BUT SAID IT EXPECTS THESE PRICING PRESSURES TO PERSIST FOR THE FORESEEABLE FUTURE SOME BIOTECHNOLOGY STOCKS BENEFITED IN THE MARKET UPSWING AMGEN JUMPED 1 1/2 TO 70 3/4 PRUDENTIAL SECURITIES RAISED ITS INVESTMENT RATING ON AMGEN TO BUY FROM HOLD REGENERON PHARMACEUTICALS ROSE 1 TO 14 3/4 THE TARRYTOWN NY COMPANY SAID IT HAS INITIATED A PHASE II STUDY OF ITS RECOMBINANT HUMAN CILIARY NEUROTROPHIC FACTOR IN PATIENTS WITH AMYOTROPHIC LATERAL SCLEROSIS COMMONLY KNOWN AS LOU GEHRIG'S DISEASE THE COMPANY SAID IT PLANS TO START A LARGE PIVOTAL PHASE III STUDY AT MORE THAN 30 NEUROLOGY CENTERS IN THE FIRST HALF OF 1993 PRINTRONIX JUMPED 1 1/4 TO 5 1/2 THE IRVINE CALIF MAKER OF COMPUTER PRINTERS REPORTED EARNINGS OF 19 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED DEC 25 COMPARED WITH A LOSS OF 57 CENTS A SHARE A YEAR EARLIER TACO CABANA CLIMBED 2 1/2 TO 21 TUESDAY AFTERNOON TWO PESOS SAID IT SIGNED A LETTER OF INTENT TO SELL ITS RESTAURANT ASSETS TO RIVAL TACO CABANA FOR AN ESTIMATED 940000 TACO CABANA SHARES TACO CABANA WHICH WENT PUBLIC IN MIDOCTOBER AT 13 1/2 OPERATES MEXICAN RESTAURANTS IN THE US INACOM CORP ROSE 2 1/2 TO 17 SEARS ROEBUCK & CO SAID IT AGREED TO SELL ITS SEARS BUSINESS CENTERS DIVISION TO INACOM AN OMAHA NEB COMPUTER AND COMMUNICATIONS SYSTEMS PROVIDER TERMS WEREN'T DISCLOSED FRANKLIN ELECTRONIC PUBLISHERS CLIMBED 2 1/4 TO 18 THE MOUNT HOLLY NJ PUBLISHER OF ELECTRONIC BOOKS REPORTED EARNINGS OF 45 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED DEC 31 UP FROM 28 CENTS A SHARE EARLIER RESULTS WERE HIGHER THAN THE MEAN ESTIMATE OF 34 CENTS A SHARE PROVIDED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM 9301140019 930106 MARKETING AUDIOBOOK MAKERS SEEK MORE LISTENERS BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEARD ANY GOOD PAPERBACKS LATELY THEY WILL BE INCREASINGLY AVAILABLE TO LISTEN TO AS PUBLISHERS TRY TO BROADEN THE MARKET FOR AUDIO BOOKS BY RERELEASING CHEAPER VERSIONS OF THE ORIGINAL CASSETTES IN EFFECT PAPERBACK' EDITIONS BOOKS ON TAPE WHICH BEGAN BEING WIDELY DISTRIBUTED IN THE MID1980S RACKED UP DOUBLEDIGIT SALES GROWTH ANNUALLY REACHING SALES OF ABOUT 800 MILLION BY THE END OF THE DECADE BUT THE MARKET HAS PLATEAUED IN RECENT YEARS RANDOM HOUSE IS THE MOST AMBITIOUS OF THE PUBLISHERS TRYING TO BOOST AUDIO SALES WITH THESE PAPERBACK VERSIONS IT IS RERELEASING THE CASSETTES IN A SMALLER PLAINER BOX AT ABOUT HALF THE COST OF THE ORIGINAL AUDIOCASSETTES WHICH SELL FOR ABOUT 16 AS WITH PAPERBACK BOOKS AUDIO CONSUMERS WILLING TO WAIT A YEAR OR SO AFTER A BOOK'S FIRST RELEASE CAN BUY THE SAME WORDS USUALLY AN ABRIDGEMENT OF THE ORIGINAL WRITTEN WORK FOR LESS MONEY WE HAVE TO DO SOMETHING TO CREATE AWARENESS AND AFFORDABILITY BECAUSE TOO MANY PEOPLE STILL THINK AUDIO BOOKS ARE ONLY FOR THE BLIND SAYS PATRICIA JOHNSON PUBLISHER OF AUDIO BOOKS FOR RANDOM HOUSE THE PEOPLE WHO BUY AUDIO ARE EXTREMELY DEVOUT BUT THE MAJORITY OF BOOKSTORE CUSTOMERS DON'T BUY TAPED BOOKS OR SEE WHY THEY WOULD WANT TO SHE ADDS IT'S A REAL BATTLE AGREES CYNTHIA HOLLAND HEAD OF AUDIO FOR WALDENBOOKS A UNIT OF KMART CORP THE BOOKSTORE CHAIN HAS CARRIED TAPED BOOKS FOR A DECADE WITH THE AVERAGE MALL STORE CARRYING AT LEAST 200 TITLES BUT WALDENBOOKS SAYS ITS MOST POPULAR AUDIO BOOKS TEND TO SELL JUST ONETENTH AS MANY COPIES AS THE EQUIVALENT HARDCOVER BOOK I THINK PRICING AUDIO BOOKS UNDER 10 WILL MAKE A HUGE DIFFERENCE SAYS MS HOLLAND JUST LIKE WHEN VIDEOS FELL TO 25 I THINK THIS WILL TAKE THE AUDIO MARKET TO THE NEXT LEVEL THE RANDOM HOUSE LINE OF PRICELESS AUDIO BOOKS DUE OUT IN MARCH FEATURES TWOCASSETTE NOVELS FOR 899 SOME 30 TITLES A YEAR WILL BE RELEASED BY THE PUBLISHER A UNIT OF ADVANCE PUBLICATIONS INC THE LIST COMPRISES POPULAR RECENT NOVELS BY THE LIKES OF PETER BENCHLEY ROBERT LUDLUM MARIO PUZO AND BARBARA TAYLOR BRADFORD IN LOWERING PRICES RANDOM HOUSE IS ALSO APPEALING TO MASSMARKET DISCOUNT MERCHANDISERS THAT WERE RELUCTANT TO CARRY HIGHERCOST TAPES YOU CAN'T GET THESE 16 TAPES INTO TARGET AND KMART AND PLACES LIKE THAT SAYS MS JOHNSON BUT AT 899 WE'RE GETTING A GOOD RESPONSE THE MAJORITY OF AUDIOBOOK USERS ARE COMMUTERS AND SINCE COMMUTERS ALSO LISTEN TO THE RADIO IN THEIR CARS RANDOM HOUSE PLANS TO ADVERTISE ITS NEW AUDIO LINE THROUGH RADIO TRIVIA CONTESTS IN WHICH THE PRIZE WILL BE AN AUDIO BOOK WE'RE WORKING WITH CONTESTS THAT ARE RUN ON STATIONS ALL OVER THE COUNTRY ON RADIO FORMATS THAT APPEAL TO GROWNUPS LIKE CLASSIC ROCK AND COUNTRY SAYS MS JOHNSON RANDOM HOUSE ISN'T THE FIRST TO EXPERIMENT WITH LOWER PRICES DURKINHAYES A CANADIAN AUDIO PUBLISHER INTRODUCED ITS PAPERBACK AUDIO LINE LAST FALL IT FEATURES SINGLECASSETTE VERSIONS OF NOVELS BY SUCH WELLKNOWN AUTHORS AS AGATHA CHRISTIE FOR 499 ANOTHER MAJOR PLAYER IN AUDIO BOOKS BERTELSMANN AG'S BANTAM DOUBLEDAY DELL PUBLISHING GROUP DISCOUNTED SOME OF ITS MOST POPULAR AUDIO TITLES LAST SUMMER AT 1279 DOWN FROM ITS USUAL 1599 CURRENTLY BANTAM DOUBLEDAY IS SELLING A SINGLE CASSETTE AUDIO VERSION OF A LOUIS L'AMOUR WESTERN FOR 799 PRICE IS ONLY ONE STRATEGY BEING USED BY AUDIO PUBLISHERS TO BROADEN THE MARKET SIMON & SCHUSTER'S AUDIO PUBLISHER SETH D GERSHEL SAYS THE COMPANY BELIEVES THAT PRICE ISN'T AS IMPORTANT AS PUBLISHING THE RIGHT TITLES WITH THE RIGHT READERS AND AT THE SAME TIME THE BOOK FIRST COMES OUT HE SAYS SIMON & SCHUSTER'S MOST POPULAR AUDIO BOOK EVER IS RUSH LIMBAUGH'S THE WAY THINGS OUGHT TO BE WHICH IS READ BY THE RADIO COMMENTATOR IT HAS SOLD ABOUT 150000 COPIES AT 17 EACH MOST AUDIO BOOKS NOW SELL IN BOOKSTORES A GROWING NUMBER OF THE TAPES PARTICULARLY UNABRIDGED WORKS ARE SOLD AND RENTED BY MAILORDER CONCERNS AT BANTAM DOUBLEDAY THE MARKETBROADENING STRATEGY INCLUDES PUSHING HARD TO GET OUR PRODUCT INTO NEW OUTLETS INCLUDING MORE VIDEO STORES AND THE EMERGING AUDIOONLY STORES SAYS RICHARD SARNOFF VICE PRESIDENT AND DIRECTOR OF DIVERSIFIED PUBLISHING AT BANTAM DOUBLEDAY WE ALSO HAVE A DEAL WITH OUR SISTER COMPANY BERTELSMANN MUSIC GROUP WHICH IS USING ITS DISTRIBUTION SYSTEM AS A RECORD COMPANY TO GET MORE OF OUR AUDIOTAPES INTO RECORD STORES RESOUND INTERNATIONAL INC A MINNEAPOLIS COMPANY THAT DISTRIBUTES AUDIO BOOKS PRIMARILY FOR THE RENTAL MARKET SAYS THAT ONLY ABOUT 11 OF VIDEO STORES CURRENTLY CARRY AUDIO BOOKS FOR SALE OR RENTAL WE THINK THE RENTAL END IS HOW THE MARKET WILL GROW IF TRYING AUDIO IS VERY INEXPENSIVE CONSUMERS CAN SAMPLE THE MERCHANDISE AND THEN START COLLECTING AS THEY DID WITH VIDEO SAYS TERRY LIPELT RESOUND'S MERCHANDISING DIRECTOR WE RECOMMEND A RENTAL RATE OF A DOLLAR A DAY JACK LAMPLOUGH MARKETING DIRECTOR FOR TOWER BOOKS WHOSE PARENT ALSO OWNS TOWER RECORDS AND TOWER VIDEO SAYS AUDIO TITLES CAN BE RENTED IN ALL THREE CHAINS BUT IT'S VERY VERY SLOW HE ADDS THE HOT AUDIO TITLES PEOPLE TEND TO BUY RIGHT AWAY AND THAT'S WHERE MOST OF THE MARKET IS BUT MR LAMPLOUGH ISN'T GIVING UP WE'RE GOING TO INSTALL AUDIO LISTENING BOOTHS IN MOST OF OUR BOOKSTORES AND I THINK THE PRICE BREAK WILL END UP BEING VERY IMPORTANT IN GROWING THIS MARKET IF RANDOM HOUSE'S PAPERBACK CONCEPT ATTRACTS CONSUMERS THERE IS NO QUESTION THAT OTHER PUBLISHERS WILL COPY THE STRATEGY OF COURSE WE'LL COPY IT IF IT'S HUGELY SUCCESSFUL SAYS MR SARNOFF OF BANTAM DOUBLEDAY AND I REALLY DO WISH THEM SUCCESS BECAUSE THIS IS ONE MARKET THAT COULD POTENTIALLY EXPLODE 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 9301140018 930114 FUTURES MARKETS IN FRANCE GERMANY PLAN LINKUP SPECIAL TO THE WALL STREET JOURNAL LONDON THE FRENCH AND GERMAN FUTURES MARKETS ARE PLANNING A LINKUP THAT WOULD INVOLVE MARKETING OPERATIONAL AND STRATEGIC COOPERATION FRANCE'S MARCHE A TARME INTERNATIONAL DE FRANCE OR MATIF SAID THE LINK WITH GERMANY'S DEUTSCHE TERMINBORSE WAS AIMED AT CREATING A STRONGER EUROPEAN FUTURES AND OPTIONS ENVIRONMENT IN THE CONTEXT OF ECONOMIC AND MONETARY UNION SPECIFICALLY MATIF TRADERS WILL HAVE ACCESS TO MARKDENOMINATED INTERESTRATE CONTRACTS ON THE DTB WHILE DTB TRADERS WILL BE ABLE TO NEGOTIATE EUROPEAN CURRENCY UNITDENOMINATED CONTRACTS ON THE MATIF EVENTUALLY OTHER PRODUCTS WILL BE EXCHANGED THE EXCHANGES SAID THE AUTOMATED SYSTEM EXPECTED TO BECOME OPERATIONAL BY LATE 1993 OR EARLY 1994 WILL FUNCTION PARALLEL TO MATIF'S OPEN OUTCRY SYSTEM THE ACCORD ALSO IS OPEN TO OTHER FUTURES MARKETS THAT MIGHT EVENTUALLY WANT TO JOIN ASKED WHY MATIF DIDN'T PURSUE A LINK WITH THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE THE PRESIDENT OF MATIF SAID THAT LIFFE PRODUCTS COMPETE WITH OTHER EXCHANGES HE ADDED THAT THERE IS LESS OVERLAP WITH THE DTB 9301140017 930114 KODAK TO REQUIRE STOCK OWNERSHIP BY TOP MANAGERS BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO UNDER PRESSURE TO IMPROVE PROFITS SAID IT WILL PEG MORE OF ITS TOP MANAGERS' PAY TO CORPORATE PERFORMANCE AND REQUIRE THEM TO INVEST ONE TO FOUR TIMES THE AMOUNT OF THEIR ANNUAL SALARIES IN STOCK THE NEW PLAN WRITTEN BY CHAIRMAN KAY WHITMORE GIVES THE TOP EXECUTIVES FIVE YEARS TO BUY THE REQUIRED AMOUNT OF STOCK EITHER ON THE OPEN MARKET OR BY EXERCISING OPTIONS MR WHITMORE MUST INVEST FOUR TIMES HIS SALARY WHILE PRESIDENTS CORPORATE OFFICERS AND STAFF OFFICERS MUST BUY ENOUGH STOCK TO TRIPLE DOUBLE OR MATCH THEIR SALARIES RESPECTIVELY REQUIRING EXECUTIVES TO USE THEIR OWN MONEY TO BUY LARGE AMOUNTS OF COMPANY STOCK IS THE RIGHT THING TO DO ALTHOUGH NOT MANY COMPANIES DO IT SAID IRA KAY A MANAGING DIRECTOR FOR HAY GROUP A COMPENSATION CONSULTING FIRM MEETING THE STOCK OWNERSHIP ASPECT OF THE NEW PLAN WILL REQUIRE BIG PERSONAL INVESTMENTS MR WHITMORE FOR INSTANCE MUST BUY ABOUT 38 MILLION OF STOCK BASED ON HIS 1991 SALARY AT THE END OF 1991 HE OWNED ONLY 21748 SHARES VALUED AT ABOUT 1 MILLION AS OF YESTERDAY'S CLOSE THAT MEANS HE HAS FIVE YEARS TO INVEST ANOTHER 28 MILLION IN THE STOCK PUTTING EXISTING PAY AT RISK INSTEAD OF JUST PUTTING BONUS PAY AT RISK FOCUSES EXECUTIVES ON MAKING VERY TOUGH DECISIONS THAT HAVE TO COME OUT OF KODAK MR KAY SAID KODAK HAS PUT EXISTING PAY AT RISK FOR YEARS BUT UP UNTIL NOW MUCH OF THAT PAY WAS PEGGED TO INDIVIDUAL OR UNIT PERFORMANCE NOW THERE IS MORE EMPHASIS ON GROUP AND COMPANY PERFORMANCE THE NEW MIX IS NOT A CUREALL BUT IT MIGHT REDUCE INFIGHTING MR KAY SAID IN A WORST CASE SCENARIO AN EXECUTIVE WHO MEETS NONE OF HIS GOALS WOULD BE PAID ONLY 60 OF HIS SALARY BUT THOSE WHO EXCEED GOALS COULD EARN AS MUCH AS 140 OF THEIR SALARIES SEPARATELY KODAK'S STOCK WAS THE THIRD MOST ACTIVE ISSUE TODAY WITH 3461000 SHARES CHANGING HANDS ON THE NEW YORK STOCK EXCHANGE IT CLOSED AT 4775 UP ONLY 125 CENTS FOR THE DAY BUT UP A TOTAL OF 6 SINCE MONDAY WHEN KODAK APPOINTED CHRISTOPHER J STEFFEN A HONEYWELL TURNAROUND ARTIST AS CHIEF FINANCIAL OFFICER 9301140016 930114 CELLPRO'S PUBLIC OFFERING FILING SEATTLE CELLPRO INC A MAKER OF CELLSEPARATION SYSTEMS FOR RESEARCH AND MEDICAL USES SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 25 MILLION COMMON SHARES PLUS 37500 SHARES GRANTED TO UNDERWRITERS UNDER AN OVERALLOTMENT OPTION AFTER THE OFFERING CELLPRO WILL HAVE ABOUT 12 MILLION COMMON SHARES OUTSTANDING THE OFFERING IS BEING MADE THROUGH AN UNDERWRITING GROUP MANAGED BY PAINEWEBBER INC OPPENHEIMER & CO AND PUNK ZIEGEL & KNOELL 9301140015 930114 INTERNATIONAL JAPAN'S RULING PARTY WILL SEEK A REVIEW OF 1946 CONSTITUTION BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S RULING POLITICAL PARTY WILL SOON BREAK A LONGSTANDING TABOO BY PROPOSING A PARLIAMENTARY REVIEW OF THE CONSTITUTION A DOCUMENT THAT HASN'T BEEN TOUCHED SINCE GEN DOUGLAS MACARTHUR'S OCCUPATION GOVERNMENT FORCED IT ON THE NATION 46 YEARS AGO THE MAIN FOCUS WILL LIKELY BE A CALL TO CHANGE THE SOCALLED PEACE PROVISION RESTRICTING THE DISPATCH OF JAPANESE TROOPS OVERSEAS JAPANESE SEE THE CLAUSE AS A HALLMARK OF THE CONSTITUTION BUT IN RECENT YEARS IT HAS BEEN CRITICIZED AS A BARRIER TO JAPAN'S MOVING BEYOND CHECKBOOK DIPLOMACY AND MEETING DEMANDS THAT IT JOIN IN UNITED NATIONS PEACEKEEPING VENTURES BUT RULING LIBERAL DEMOCRATIC PARTY POLITICIANS INSIST THEY ARE HOPING TO SPARK A BROADER DEBATE ABOUT THE FUNDAMENTAL RULES THAT HAVE GOVERNED THE NATION FOR HALF A CENTURY WHEN THEY ANNOUNCED SUPPORT FOR THE PROPOSAL WEDNESDAY SOME SAID THEY WANT TO CHANGE CLAUSES ON EDUCATION AND TAXATION OTHERS SAY THEY WANT THE DIRECT ELECTION OF A PRESIDENT INSTEAD OF THE CURRENT SYSTEM OF LETTING THE LEGISLATURE CHOOSE A PRIME MINISTER SOME ARE ALSO DEMANDING GREATER REGIONAL AUTONOMY FROM TOKYO WE USED TO PUT THE CONSTITUTION UP IN A KAMIDANA A SHRINE MANY JAPANESE PEOPLE KEEP IN THEIR HOMES TO REVERE ANCESTORS SAID AN AIDE TO HIROSHI MITSUZUKA A RANKING LDP OFFICIAL BUT NOW IT'S A BOOK IN OUR HANDS MR MITSUZUKA WILL MAKE THE PROPOSAL AFTER THE DIET OR PARLIAMENT OPENS ITS SESSION NEXT WEEK OF COURSE MANY HURDLES REMAIN BEFORE ANYTHING CAN CHANGE THE SOCIALISTS JAPAN'S LARGEST OPPOSITION GROUP ARE EXPECTED TO RESIST ANY CHANGE TO THE CONSTITUTION AND EVEN SOME LDP ELDERS ARE SAID TO BE UNCOMFORTABLE WITH THE IDEA SKEPTICS SAID THE LDP MOVE ISN'T SERIOUS BUT RATHER A SMOKE SCREEN TO DIVERT ATTENTION FROM A SCANDAL INVOLVING ILLEGAL CAMPAIGN CONTRIBUTIONS THAT HAS DAMAGED THE PARTY'S POPULARITY OPPOSITION PARTIES HAVE BEEN PLANNING TO PURSUE THE SCANDAL IN THE COMING DIET SESSION AND MAY DEMAND THAT MORE LDP BOSSES GIVE PUBLIC TESTIMONY CALLING FOR CONSTITUTIONAL CHANGE PUTS THE LDP ON THE REFORMING OFFENSIVE RATHER THAN DEFENSIVE WHEN JAPAN'S CONSTITUTION WAS WRITTEN IN 1946 WE DIDN'T THINK OF BECOMING A STRONG POLITICAL OR ECONOMIC POWER IN THE WORLD SEIROKU KAJIYAMA LDP SECRETARYGENERAL SAID IN A SPEECH LAST WEEK IT WAS IN THAT ATMOSPHERE THAT THE CONSTITUTION WAS WRITTEN WE HAVE TO REVISE THE CONSTITUTION BECAUSE THE ATMOSPHERE IS CHANGING A FEW JAPANESE USUALLY BRANDED AS RIGHTWINGERS AND ULTRANATIONALISTS HAVE BEEN CALLING FOR A CONSTITUTIONAL OVERHAUL SINCE JAPAN REGAINED ITS INDEPENDENCE IN 1952 THEY RESENT THE FACT THAT JAPAN IS RULED BY A DOCUMENT WRITTEN BY FOREIGNERS SOME ARGUE THAT JAPAN SHOULD HAVE AN ARMY LIKE ANY OTHER NATION'S AND OTHERS DEMAND THAT THE EMPEROR BE DECLARED THE HEAD OF STATE NOT JUST ITS SYMBOL AS REQUIRED BY THE POSTWAR CONSTITUTION THE LDP TO APPEASE THOSE ELEMENTS IN THE PARTY FOR YEARS HAS SUPPORTED CONSTITUTIONAL REFORM IN ITS PLATFORM BUT ITS LEADERS NEVER PUSHED THE ISSUE TWO NEW LIBERAL POLITICAL REFORM GROUPS HAVE ALSO CALLED FOR RETHINKING THE CONSTITUTION THOUGH THEY HAVEN'T PROVIDED MUCH DETAIL ON HOW THE JAPAN NEW PARTY WHICH WON FOUR SEATS IN LAST SUMMER'S PARLIAMENTARY ELECTIONS WANTS TO LOOK AT THE CONSTITUTION IN A BROAD SENSE TO REVIEW THE CLAUSES ONE BY ONE A SPOKESMAN SAID THE SECOND GROUP AN INDEPENDENT CITIZENS' ORGANIZATION BELIEVES DISCUSSING THE CONSTITUTION SHOULDN'T BE TABOO A SPOKESMAN SAID SUCH TALK HAS BEEN BUILDING SINCE LAST YEAR WHEN THE DIET AFTER MUCH DEBATE PASSED A BILL ALLOWING JAPAN TO SEND GROUND TROOPS TO JOIN UN PEACEKEEPING OPERATIONS IN CAMBODIA EVEN MANY SUPPORTERS OF THE MOVE WHICH DOESN'T INVOLVE COMBAT TROOPS ACKNOWLEDGED THAT IT VIOLATED JAPAN'S CONSTITUTION WHICH READ LITERALLY APPEARS TO BAN EVEN THE EXISTENCE OF A MILITARY IN JAPAN 9301140014 930114 WHO'S NEWS APPLIED IMMUNE SCIENCES APPLIED IMMUNE SCIENCES SANTA CLARA CALIF FRENCH SCIENTIST LUC MONTAGNIER WHOSE TEAM AT THE PASTEUR INSTITUTE IN PARIS IDENTIFIED THE VIRUS THAT CAUSES AIDS WAS NAMED A CONSULTANT AND MEMBER OF THE MEDICAL AND SCIENTIFIC ADVISORY BOARD OF THIS COMPANY APPLIED IMMUNE SCIENCES DEVELOPS CELLBASED THERAPY TO BOLSTER THE IMMUNE SYSTEM IN DISEASES SUCH AS AIDS AND CANCER 9301140013 930114 WHAT'S NEWS WORLDWIDE ALLIED PLANES BOMBED ANTIAIRCRAFT MISSILE SITES IN SOUTHERN IRAQ US BRITISH AND FRENCH WARPLANES CONDUCTED A NIGHTTIME BOMBING RAID IN THE NOFLY ZONE IN THE SOUTH AIMED AT A LIMITED NUMBER OF MILITARY TARGETS THE STRIKE INVOLVING 110 ALLIED PLANES FOLLOWED RECENT IRAQI PROVOCATIONS US OFFICIALS SAID THERE WEREN'T ANY IMMEDIATE PLANS FOR MORE ATTACKS BUSH ALSO DISPATCHED 1000 TROOPS TO KUWAIT AS A DETERRENT AT THE UN MEANWHILE IRAQ SAID IT WOULD ALLOW WEAPONS INSPECTORS TO RESUME FLYING THEIR OWN AIRCRAFT INTO THE COUNTRY AND WOULD STOP RAIDING UN OUTPOSTS IRAQ'S SADDAM HUSSEIN IN A TELEVISED ADDRESS URGED HIS AIR FORCE TO HIT BACK AT THE ALLIES IN ANOTHER HOLY WAR DECLARING THAT THE CRIMINALS CAME BACK CARRYING THEIR SPITE AND THEIR TOOLS OF EVIL A DIVIDED SUPREME COURT TOOK AWAY A LEGAL TOOL THAT FEDERAL JUDGES HAVE USED TO PROTECT ABORTION CLINICS FROM MILITANT PROTESTS IN ITS 54 RULING THE COURT SAID THE CIVIL RIGHTS ACT OF 1871 DOESN'T SAFEGUARD CLINIC PATIENTS FROM FACING BLOCKADES BY ANTIABORTION GROUPS CORPORATE FUNDS HAVE BEEN SOLICITED BY A REPRESENTATIVE OF HILLARY CLINTON'S TWO BROTHERS TO UNDERWRITE INAUGURAL PARTIES TO FETE FAMILY MEMBERS AND CAMPAIGN VOLUNTEERS MEANWHILE COMMERCE SECRETARYDESIGNATE RONALD BROWN CANCELED THREE CORPORATESPONSORED DINNERS PLANNED IN HIS HONOR FIFTYONE CHILDREN DIED OF STARVATION AND COLD TUESDAY NIGHT IN AN EASTERN BOSNIAN TOWN BLOCKADED BY SERBS AND ISOLATED FOR NINE MONTHS ACCORDING TO HAM RADIO REPORTS IN ADDITION 34 ADULTS DIED IN THE TOWN ZEPA 35 MILES EAST OF SARAJEVO THE AMATEUR RADIO OPERATORS HAVE BEEN THE ONLY LINK TO THE OUTSIDE FOR THE TOWN'S 28000 RESIDENTS THE SUPREME COURT RULED THAT COURTS MAY NOT SECONDGUESS CONGRESS'S POWER TO IMPEACH AND OUST FEDERAL OFFICIALS THE JUSTICES IN UPHOLDING THE REMOVAL OF US DISTRICT JUDGE WALTER NIXON OF MISSISSIPPI SAID ALLOWING COURTS TO INTERVENE COULD CREATE CHAOS PARTICULARLY IF A PRESIDENT WERE IMPEACHED NO COMPELLING EVIDENCE EXISTS THAT ANY AMERICAN PRISONER OF WAR REMAINS ALIVE IN CAPTIVITY IN SOUTHEAST ASIA A SENATE COMMITTEE REPORTED THE PANEL ALSO CONCLUDED THAT US OFFICIALS DIDN'T KNOWINGLY ABANDON POWS AFTER THE VIETNAM WAR BUT DID SHUNT ASIDE QUESTIONS ABOUT THEM THE FAA'S TOP SAFETY REGULATOR SAID THE AGENCY WILL NO LONGER CONDUCT JETEVACUATION TESTS THAT ATTEMPT TO FULLY SIMULATE EMERGENCY CONDITIONS INSTEAD THE AGENCY HAS BEGUN CONDUCTING THE TESTS IN PHASES TO ELIMINATE ANY DANGERS FOR THE VOLUNTEERS THE US NEEDS A NEW DIPLOMACY THAT ANTICIPATES AND PREVENTS CRISES LIKE THOSE IN IRAQ BOSNIA AND SOMALIA SECRETARY OF STATEDESIGNATE CHRISTOPHER TOLD THE SENATE FOREIGN RELATIONS COMMITTEE AT HIS CONFIRMATION HEARING MEDICAL RESEARCHERS SAID INJECTIONS OF A COMMON FOOD ADDITIVE CAN REAWAKEN A DORMANT GENE AND RELIEVE THE UNDERLYING CAUSE OF SICKLE CELL ANEMIA PERHAPS PROVIDING A SIMPLE TREATMENT FOR THE INHERITED DISEASE DIPLOMATS FROM OVER 120 NATIONS MET IN PARIS TO BEGIN SIGNING A TREATY TO BAN THE MANUFACTURE STORAGE AND USE OF CHEMICAL WEAPONS SEVERAL ARAB STATES BOYCOTTED THE MEETING OVER ISRAEL'S REFUSAL TO ENDORSE A NUCLEAR NONPROLIFERATION TREATY THE SHUTTLE ENDEAVOUR BLASTED OFF FROM FLORIDA WITH FIVE ASTRONAUTS WHO PROMPTLY RELEASED A 200 MILLION US COMMUNICATIONS SATELLITE THE CREW ALSO PLANNED A SPACEWALK AND TOY DEMONSTRATION AND GOT A CHANCE TO USE A NEW 23 MILLION TOILET HONECKER LEFT BERLIN ON A PLANE TO CHILE AFTER JUDICIAL OFFICIALS FREED HIM FROM JAIL BECAUSE HE IS DYING FROM LIVER CANCER GERMAN AUTHORITIES HALTED A MANSLAUGHTER TRIAL AGAINST THE FORMER EAST GERMAN LEADER FOR KILLINGS AT THE BERLIN WALL JAPAN'S RULING PARTY ANNOUNCED SUPPORT FOR A PROPOSED REVIEW OF THE CONSTITUTION WHICH HASN'T BEEN CHANGED SINCE MACARTHUR'S OCCUPATION GOVERNMENT FORCED IT ON TOKYO 46 YEARS AGO A REVIEW WOULD FOCUS ON A CHANGE IN RESTRICTIONS ON THE DISPATCH OF TROOPS ABROAD 9301140012 930114 AMERICA WEST AIR TRAFFIC FALLS PHOENIX AMERICA WEST AIRLINES SAID DECEMBER TRAFFIC FELL 172 THE AIRLINE FLEW 9022 MILLION REVENUE PASSENGER MILES COMPARED WITH 111 BILLION FOR DECEMBER 1991 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ALSO FELL TO 606 FROM 625 FOR THE YEAR TRAFFIC DECREASED ABOUT 96 TO 1188 BILLION REVENUE PASSENGER MILES FROM 1303 BILLION LOAD FACTOR DROPPED TO 611 FROM 632 9301140011 930114 OSHA ISSUES NEW WORK RULES ON CONFINED SPACES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON UNDER NEW RULES EXPECTED TO AFFECT 240000 WORK SITES AND 16 MILLION WORKERS THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION IS ORDERING COMPANIES TO CLEARLY MARK AND LIMIT ACCESS TO CONFINED SPACES THE RULES IN THE WORKS AT THE LABOR DEPARTMENT DIVISION FOR 17 YEARS ARE EXPECTED TO PREVENT 54 DEATHS AND MORE THAN 5000 SERIOUS INJURIES A YEAR OSHA SAID COMPLIANCE IS EXPECTED TO COST COMPANIES 2024 MILLION A YEAR THE NEW STANDARD WHICH WILL TAKE EFFECT IN THREE MONTHS WILL COVER AGRICULTURAL SERVICES MANUFACTURING CHEMICAL PLANTS REFINERIES TRANSPORTATION UTILITIES AND OTHER INDUSTRIES IT WILL APPLY TO BOILERS STORAGE VESSELS RAILROAD TANK CARS MANHOLES AND COOKING AND PROCESS VESSELS AMONG OTHER SPACES OSHA OFFICIALS THIS YEAR HAD BUMPED UP THE CONFINEDSPACE PROBLEM ON THEIR PRIORITY LIST EVERY WEEK I GET A LIST OF FATALITIES THAT SAYS WHERE THEY HAPPENED WHAT HAPPENED AND THE AGE OF THE EMPLOYEE SAID DOROTHY STRUNK ACTING OSHA ADMINISTRATOR I DISCOVERED THERE ARE A LOT OF FATALITIES OCCURRING DUE TO CONFINED SPACES THE AGENCY ESTIMATED THAT 63 WORKERS DIED FROM PROBLEMS IN CONFINED SPACES LAST YEAR IT CALCULATED THAT 16 MILLION WORKERS ENTER THOSE SPACES EACH YEAR TO DO BRIEF WORK OR CLEANING BY DEFINITION CONFINED SPACES ARE BIG ENOUGH FOR EMPLOYEE ENTRY HAVE LIMITED MEANS OF ACCESS AND AREN'T DESIGNED FOR CONTINUOUS EMPLOYEE OCCUPANCY UNDER THE NEW RULES COMPANIES WILL BE REQUIRED TO SET UP A WRITTEN PROGRAM TO PREVENT UNAUTHORIZED ENTRY INTO THE SPACES AND TO SET PROCEDURES FOR SAFE ENTRY AN ATTENDANT MUST BE STATIONED OUTSIDE THE SPACES DURING ENTRY IN ADDITION THERE MUST BE PROCEDURES TO CALL RESCUERS AND TO PREVENT UNAUTHORIZED PERSONNEL FROM ATTEMPTING RESCUE WHICH SOMETIMES RESULTS IN ADDITIONAL DEATHS WHEN ILLEQUIPPED WORKERS TRY TO HELP COWORKERS IN PARTICULAR THE PROGRAM IS DESIGNED TO PROTECT WORKERS FROM TOXIC EXPLOSIVE OR ASPHYXIATING ATMOSPHERES AND FROM THE SWALLOWING OF PARTICLES OF GRAIN OR SAWDUST AREAS WITH IMMEDIATE HEALTH OR SAFETY RISK WILL BE DENOTED AS PERMITREQUIRED CONFINED SPACES THIS IS NOT GOING TO BE AN EASY STANDARD FOR EMPLOYERS WHO FIND THEMSELVES NEEDING A PERMITREQUIRED' CONFINED SPACE MS STRUNK SAID IN AN INTERVIEW AND WORKERS WILL HAVE TO LEARN THE RULES AS WELL AS EMPLOYERS SHE SAID 9301140010 930114 FOREIGN EXCHANGE DOLLAR FINISHES MIXED AFTER RALLY FAILS FOLLOWING NEWS OF ALLIED ATTACK ON IRAQ BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK DISAPPOINTED BY THE DOLLAR'S FAILURE TO RALLY ON NEWS ALLIED AIRCRAFT HAD ATTACKED IRAQ TRADERS SOLD THE US CURRENCY LATE YESTERDAY LEAVING IT MIXED THE DOLLAR MANAGED TO HOLD ONTO SOME OF ITS EARLY GAINS AGAINST THE YEN BUT ENDED WELL BELOW ITS HIGHS FOR THE DAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16234 MARKS OFF FROM 16307 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12565 YEN UP FROM 12520 YEN STERLING WAS TRADING AT 15495 UP FROM 15445 AT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16220 MARKS AND AT 12573 YEN THE MARKET SHOWED ALMOST NO IMMEDIATE REACTION WEDNESDAY AS REPORTS OF THE ATTACKS BY US BRITISH AND FRENCH PLANES FIRST LEAKED OUT DEALERS SAID THE ATTACK CAPPING A CRESCENDO OF ALLIED WARNINGS AND THREATS WAS FAR TOO WELL ANTICIPATED SAID ALEXIS MCCARTHY CORPORATE TRADER AT BANQUE INDOSUEZ IN NEW YORK STEPHEN JURY CHIEF DEALER AT CHEMICAL BANK SAID PEOPLE BOUGHT DOLLARS ON THE RUMORS AND AS SOON AS IT WAS CONFIRMED THE ATTACKS WERE UNDER WAY PEOPLE SOLD MOST OF THE EARLY DOLLAR BUYING YESTERDAY HAD COME AGAINST THE YEN DEALERS SAID AFTER EARLY REPORTS OF US PLANS TO ATTACK IRAQ SET OFF A CASCADE OF YEN SELLING BY THE TIME ALLIED BOMBS WERE FALLING THE DOLLAR HAD SLIPPED BACK FROM SIXMONTH HIGHS SEEN EARLIER AGAINST THE YEN IN THE HOURS AFTER THE FIRST REPORTS OF THE ATTACK THE DOLLAR GRADUALLY DRIFTED LOWER ACROSS THE BOARD SLIDING EASILY THROUGH WHAT HAD BEEN SEEN AS STRONG TECHNICAL SUPPORT AT AROUND 16250 MARKS IF ANYTHING IT'S MORE OF A LETDOWN THAT THERE WASN'T MORE OF A REACTION SAID MS MCCARTHY ALTHOUGH PLAYERS SAID THEY HADN'T EXPECTED AN ATTACK TO TRIGGER A HUGE RALLY IN THE DOLLAR IT WAS EXPECTED AT LEAST TO PROVIDE SOME UNDERPINNING DESPITE YESTERDAY'S GYRATIONS DEALERS SAID THE MARKET REMAINS WITHOUT DIRECTION THE DOLLAR'S STILL VERY VERY FIRMLY ENTRENCHED IN ITS RANGE SAID CHEMICAL BANK'S MR JURY EVEN THE DOLLAR'S SHARP MOVE AGAINST THE YEN WAS LARGELY THE RESULT OF RANGE TRADING DEALERS SAID JOHN LYMAN SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK SAID I THINK THE YEN HAS BEEN CONFINED TO A RANGE FOR SO LONG THAT THERE WAS A GREAT DEAL OF ENERGY BUILT UP THAT ENERGY WAS IN THE FORM OF SHORT POSITIONS THUS WHEN DOLLAR BUYING DROVE THE DOLLAR THROUGH 12550 YEN SELLERS SWARMED ON THE YEN TRADERS SAID THE FIRST WAVE CAME AS INVESTORS WHO HAD BEEN PLAYING THE RANGE BUYING YEN NEAR THE TOP OF THE DOLLAR'S RANGE IN THE HOPE OF SELLING THEM AS THE DOLLAR SLIPPED TOWARD THE BOTTOM SCRAMBLED TO COVER THEIR SHORT POSITIONS AFTER THE DOLLAR BROKE HIGHER IT JUST SHOT UP SAID FUJI BANK'S MR GRIFFIN I THINK THE MARKET DEFINITELY WAS SHORT DOLLARS GOING INTO THAT IN ADDITION INVESTORS BUYING SWISS FRANCS FOR YEN AS BONDS MATURED YESTERDAY ALSO WEIGHED ON THE JAPANESE CURRENCY DEALERS SAID THIS TORRENT OF SELLING PUSHED THE YEN DOWN TO 12622 YEN PER DOLLAR ITS LOWEST LEVEL SINCE AUGUST BUT THE DOLLAR RAN INTO TROUBLE ABOVE 12600 YEN AS PARTICIPANTS TOOK PROFITS AND ONCE THE DOLLAR BEGAN TO SLIP AFTER THE NEWS OF THE ATTACK ON IRAQ THE YEN GAINED FURTHER DEALERS SAID THE DOLLAR NOW HAS SHIFTED INTO A NEW BUT STABLE TRADING RANGE BETWEEN 12550 AND 12650 YEN THEY SAID THEY SEE LITTLE HOPE THAT IT WILL BREAK OUT OF THAT RANGE SOON THE COMMERCE DEPARTMENT WAS SCHEDULED TO RELEASE DATA TODAY ON DECEMBER RETAIL SALES ANALYSTS SURVEYED BY APDOW JONES ON AVERAGE EXPECT NOVEMBER'S 04 INCREASE TO BE FOLLOWED BY A JUMP OF 08 IN DECEMBER THE PRODUCER PRICE INDEX FOR DECEMBER ALSO DUE TODAY IS EXPECTED TO SHOW AN INCREASE OF 01 AFTER SLIPPING 02 IN NOVEMBER ACCORDING TO A SURVEY OF ECONOMISTS 9301140009 930114 DELIVERY UNION CHIEF INDICTED OVER THREATS TO NEW YORK PAPERS NEW YORK PROSECUTORS INDICTED THE PRESIDENT OF THE CITY'S NEWSPAPER DELIVERY UNION FOR ALLEGEDLY PRESSURING THREE NEW YORK NEWSPAPERS TO USE NONUNION DELIVERY SERVICES IN WHICH HE WAS A SILENT PARTNER ACCORDING TO THE INDICTMENT BY THE DISTRICT ATTORNEY'S OFFICE IN MANHATTAN DOUGLAS LACHANCE PRESIDENT OF THE NEWSPAPER AND MAIL DELIVERERS' UNION AND OTHERS THREATENED THE NEWSPAPERS WITH LABOR UNREST UNLESS THEY USED TWO NONUNION DELIVERY SERVICES THE NEWSPAPERS THE NEW YORK POST THE DAILY NEWS AND EL DIARIO A SPANISHLANGUAGE DAILY GAVE IN TO THE THREATS AND CIRCULATED A TOTAL OF 50000 NEWSPAPERS WITH THE TWO DELIVERY COMPANIES PROSECUTORS SAID THEY SAID MR LACHANCE PRESSURED THE DAILY NEWS TO USE THE NONUNION SHOPS WHILE MEMBERS OF HIS UNION WERE ON STRIKE AGAINST THE PAPER MR LACHANCE WAS CONVICTED IN 1980 ON LABOR RACKETEERING CHARGES HE WAS REELECTED PRESIDENT OF THE UNION RECENTLY AFTER HIS RELEASE FROM JAIL BUT HE IS CURRENTLY IN PRISON AGAIN FOR PAROLE VIOLATIONS INDICTED ALONG WITH MR LACHANCE WAS VICTOR GARRIDO DIRECTOR OF CIRCULATION AT EL DIARIO ANDREW GERSHOWITZ SECRETARYTREASURER OF THE UNION VICTOR ORLANDO THE OWNER OF THE TWO DELIVERY COMPANIES AND RICHARD ZEOLI A DRIVER FOR THE DAILY NEWS THE DISTRICT ATTORNEY'S OFFICE ALSO INDICTED THE TWO DELIVERY COMPANIES PELHAM NEWS DELIVERY INC AND AMERICAN PERIODICALS DISTRIBUTORS INC AND WILL SEEK THE APPOINTMENT OF A TRUSTEE TO RUN THE BUSINESSES ALL THE MEN PLEADED NOT GUILTY AT THEIR ARRAIGNMENTS AND WERE RELEASED ON BAIL A WOMAN ANSWERING THE PHONE AT PELHAM NEWS SAID THE COMPANY HAD NO COMMENT THERE WAS NO ANSWER AT AMERICAN PERIODICALS 9301140008 930114 WHO'S NEWS STORAGE TECHNOLOGY REASSIGNS 2 EXECUTIVES TO AID ICEBERG SYSTEM LOUISVILLE COLO STORAGE TECHNOLOGY CORP SAID IT CHANGED THE RESPONSIBILITIES OF TWO KEY EXECUTIVES IN A MOVE ANALYSTS SAW AS AN ATTEMPT TO ADDRESS SOME OF THE PROBLEMS PLAGUING THE COMPANY'S LONGDELAYED ICEBERG DISKARRAY STORAGE SYSTEM A COMPANY SPOKESMAN SAID DAVID WEISS 48 YEARS OLD WHO HAD BEEN A SENIOR VICE PRESIDENT FOR MARKETING WILL BE PROMOTED TO EXECUTIVE VICE PRESIDENT MR WEISS A 23YEAR VETERAN OF INTERNATIONAL BUSINESS MACHINES CORP BEFORE JOINING STORAGE TECHNOLOGY IN 1991 WILL DIRECT DEVELOPMENT OF THE COMPANY'S PRODUCTS AND MANAGE ITS PRODUCT LINE THE SPOKESMAN ALSO SAID THOMAS GOOCH 48 AN EXECUTIVE VICE PRESIDENT FOR OPERATIONS WILL ASSUME RESPONSIBILITY FOR MANUFACTURING AND DELIVERY AS WELL THE TWO EXECUTIVES WILL IN ESSENCE DIVIDE THE JOB PREVIOUSLY HELD BY ROBERT G COSTAIN THE FORMER CORPORATE VICE PRESIDENT FOR SYSTEMS DEVELOPMENT WHO LEFT IN NOVEMBER AT THE TIME CONSULTANTS FAMILIAR WITH THE ICEBERG PROJECT SAID THAT HIS DEPARTURE WAS TIED TO THE CHRONIC DELAYS IN DELIVERING THE PRODUCT THOSE DELAYS HAVE CAUSED STORAGE TECHNOLOGY'S STOCK TO BE BATTERED IN RECENT MONTHS ANALYSTS SAID THEY WERE OPTIMISTIC ABOUT THE REALIGNMENT BUT NOT CONVINCED THAT IT WOULD END THE WOES BESETTING THE MAKER OF COMPUTER DATA STORAGE SYSTEMS IT CERTAINLY BODES WELL FOR ARMING THE RIGHT KIND OF TROOPS WITH THE RIGHT KIND OF WEAPONS AND INFORMATION TO FACE THE SITUATION THEY HAVE THERE SAID NICK ALLEN AN ANALYST AT THE GARTNER GROUP IN STAMFORD CONN BUT DAVID VELLANTE A CONSULTANT AT INTERNATIONAL DATA CORP SAID HE IS CONCERNED THAT STORAGE TECHNOLOGY HASN'T ASSIGNED AN EXECUTIVE TO OVERSEE DAYTODAY DEVELOPMENT OF THE ICEBERG PROJECT 9301140007 930114 CBOT WILL LIST INTERESTRATE SWAPS AT ITS EXCHANGE BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OF TRADE FACED WITH DIMINISHING MARKET SHARE IN THE GLOBAL FUTURES INDUSTRY IS REACHING FOR A CHUNK OF THE 4 TRILLION MARKET IN INTERESTRATE SWAPS THE OVERTHECOUNTER SWAPS MARKET WHICH IS RUN BY ABOUT 130 BANKS AND SECURITIES FIRMS IS LARGELY UNREGULATED ALTHOUGH IT IS ONE OF THE BIGGEST AND FASTESTGROWING FINANCIAL MARKETS IN THE WORLD SWAPS IN WHICH BIG COMPANIES ARRANGE TO COVER ONE ANOTHER'S RISKS OF FLUCTUATIONS IN INTEREST RATES AND WORLD CURRENCY VALUES AREN'T YET TRADED ON ANY FINANCIAL EXCHANGE BUT NOW THE CBOT KNOWN BEST FOR ITS ROUGHANDTUMBLE FUTURES TRADING PITS IS PLANNING TO LIST SWAPS FOR BID AND OFFER ON A COMPUTER SCREEN AT THE EXCHANGE SWAPS WHICH AVERAGE ABOUT 25 MILLION IN FACE VALUE HAVE ALWAYS BEEN TAILORED FOR CORPORATIONS' INDIVIDUAL FINANCIAL NEEDS CBOT EXECUTIVES BELIEVE THAT THERE ARE ENOUGH COMMON ELEMENTS AMONG THESE COMPANIES' NEEDS THAT SWAPS CAN BE TRADED AT A FINANCIAL EXCHANGE MUCH LIKE FUTURES CONTRACTS OR SHARES OF STOCK ALTHOUGH THE CBOT HAS NEVER TRADED ACTUAL SWAPS BEFORE IT MADE AN UNSUCCESSFUL FORAY INTO THE SWAPS MARKET BY OFFERING SWAPS FUTURES CONTRACTS SIMILAR TO ITS BOND FUTURES CONTRACTS OR GRAIN FUTURES CONTRACTS THE SWAPS FUTURES GENERATED LITTLE INTEREST WITH ITS PLANNED SWAPSTRADING SYSTEM CBOT CHAIRMAN PATRICK H ARBOR SAYS THE EXCHANGE PLANS TO BECOME A MAJOR PLAYER IN THE OVERTHECOUNTER ARENA PREVIOUSLY DOMINATED BY BANKS AND SECURITIES FIRMS COMPANIES AND GOVERNMENT AGENCIES THAT MAKE BIG INTEREST PAYMENTS OFTEN USE SWAPS TO CURTAIL LOSSES IF INTEREST RATES MOVE AGAINST THEM A COMPANY MIGHT USE AN INTERESTRATE SWAP TO TRADE SOME OF ITS EXPOSURE TO FLOATING INTEREST RATES FOR A FIXED RATE FOR EXAMPLE IN THE OVERTHECOUNTER SWAPS MARKET BANKS AND BROKERAGE FIRMS CHARGE FEES FOR MATCHING UP COMPANIES THAT AGREE TO COVER ONE ANOTHER'S RISKS ONE CONCERN OF COMPANIES THAT MANAGE THEIR RISKS THIS WAY IS THAT THE SWAPS THEY USE ARE ONLY AS GOOD AS THE CREDIT OF THEIR COUNTERPARTY IN THE DEAL IF THE COMPANY THEY SWAP WITH FAILS THEIR PROTECTION FROM INTERESTRATE OR CURRENCY SWINGS IS LOST JAKE MOROWITZ CHAIRMAN OF THE CBOT'S ELECTRONICTRADING COMMITTEE AND THE PRESIDENT OF A FIRM THAT OFFERS TRADING AND BROKERAGE SERVICES AT THE CHICAGO EXCHANGE SAYS ONE ADVANTAGE OF THE PLANNED SWAPSTRADING SYSTEM IS THAT IT ELIMINATES THIS COUNTERPARTY RISK UNDER OUR SYSTEM THE CHICAGO BOARD OF TRADE CLEARING CORPORATION WOULD GUARANTEE ALL TRADES AS IT NOW GUARANTEES ALL OF OUR FUTURES TRADES MR MOROWITZ SAID IN EFFECT IT WOULD ACT AS THE COUNTERPARTY IN ALL THESE SWAP TRADES PEOPLE FAMILIAR WITH THE DETAILS OF THE CBOT'S PLANNED SWAPSTRADING SYSTEM SAY EXCHANGE EXECUTIVES HOPE TO HAVE IT UP AND RUNNING BY THE END OF THE YEAR 9301140006 930114 CREDIT RATINGS DSC COMMUNICATIONS CORP PLANO TEXAS MOODY'S INVESTORS SERVICE INC SAID IT RAISED ITS RATING ON THIS TELECOMMUNICATIONS EQUIPMENT MAKER'S TWO CONVERTIBLE SUBORDINATED DEBT ISSUES TO SINGLEB3 BASED ON RESOLUTION OF SOME OF THE COMPANY'S OPERATING DIFFICULTIES AND IMPROVED FINANCING ARRANGMENTS THE COMPANY RECENTLY MADE A FINAL 45 MILLION PAYMENT TO RETIRE 135 MILLION OF UNSECURED BANK DEBT AND CLOSED ON A NEW 225 MILLION LINE OF CREDIT THE COMPANY STRUGGLED MUCH OF LAST YEAR AFTER A SERIES OF PHONE OUTAGES WAS ATTRIBUTED TO A SOFTWARE ERROR IN ITS EQUIPMENT MOODY'S SAID THE COMPANY'S TECHNOLOGY RISK AND DEBT LEVELS REMAIN HIGH PEP BOYSMANNY MOE & JACK PHILADELPHIA STANDARD & POOR'S CORP RAISED ITS RATING ON PEP BOYS' DEBT REFLECTING WHAT IT CALLED THE COMPANY'S LEADING POSITION IN THE CAR PARTS AND SERVICE MARKET ABOUT 225 MILLION OF SENIOR DEBT IS AFFECTED INCLUDING A SHELF REGISTRATION FOR SENIOR DEBT S&P UPGRADED THE RATING TO TRIPLEB FROM TRIPLEBMINUS THE SHELF REGISTRATION HAS THE RATING ON A PRELIMINARY BASIS S&P CITED PEP BOYS' MODERATE CAPITAL STRUCTURE AND LEADING POSITION IN THE RELATIVELY STABLE YET HIGHLY COMPETITIVE AND FRAGMENTED AUTOMOTIVE AFTERMARKET PARTS AND SERVICE IN OFFERING BROAD SERVICE CAPABILITIES AS WELL AS AN EXTENSIVE PARTS SELECTION PEP BOYS REPRESENTS A DISTINCTIVE NICHE IN THE MARKET S&P SAID THE COMPANY'S INCREASED EMPHASIS ON SERVICE ALLOWS IT TO CAPITALIZE ON THE GROWING DEMAND IN THIS SEGMENT PROMPTED BY THE INCREASINGLY COMPLEX NATURE OF CAR MAINTENANCE BECAUSE OF ITS BASE OF MORE THAN 300 STORES PEP BOYS ENJOYS ECONOMIES OF SCALE IN PURCHASING AND DISTRIBUTION WHICH HAVE ENABLED IT TO OFFER LOW PRICES AND TAKE SOME MARKET SHARE FROM LESS EFFICIENT OPERATORS 9301140005 930114 BIG BOARD SETS REBATES FOR SMALL TRADES BY MICHAEL SICONOLFI AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE IN A BID TO STEM A LONG SLIDE IN ITS SHARE OF STOCKMARKET TRADING SAID IT WILL MAKE SIZABLE REBATES TO BROKERAGE FIRMS WHO MAKE SMALL TRADES FOR INVESTORS WITH THE REBATES THE BIG BOARD IS SEEKING TO CHALLENGE RIVAL EXCHANGES WHO PAY BROKERS TO DIVERT TRADES TO THEIR MARKETS THE BIG BOARD HAS LONG CRITICIZED THAT PRACTICE CALLED PAYMENT FOR ORDERS THESE WOULD BE THE FIRST MAJOR REBATES THAT THE NATION'S BIGGEST STOCK EXCHANGE EVER HAS INSTITUTED IN SOME CASES BROKERAGE FIRMS WILL END UP PAYING LITTLE OR NOTHING TO EXECUTE SMALL TRADES FOR CUSTOMERS ON THE BIG BOARD STILL EXCHANGE OFFICIALS SAY THE BROKERS GENERALLY WILL CONTINUE FOOTING PART OF THE TRADING BILL FOR SMALL TRADES IN NO CASE THEY INSIST WILL A BROKER ACTUALLY BE PAID TO BRING TRADES TO THE BIG BOARD THE REBATES OR CREDITS REPRESENT A PUSH BY THE BIG BOARD TO STOP THE EROSION OF ITS MARKET SHARE AS BROKERAGE FIRMS DIRECT MORE TRADES AWAY FROM THE BIG BOARD FOR CHEAPER EXECUTION BY REGIONAL STOCK EXCHANGES AND PRIVATE THIRD MARKET SECURITIES FIRMS THE BIG BOARD HAS TRIED EXPANDING ITS TRADING HOURS AMONG OTHER STEPS TO SIPHON BUSINESS FROM REGIONAL EXCHANGES EVEN THOUGH THE BIG BOARD'S TOTAL TRADING VOLUME SWELLED TO A RECORD LAST YEAR ITS TRADING SHARE OF ITS OWN STOCKS HAS SLIPPED TO 673 FROM 824 A DECADE AGO WITH MUCH OF THE MARKETSHARE LOSS IN SMALLER TRADES WE HOPE AT THE VERY LEAST THE CREDITS WILL ARREST FURTHER ORDER EROSION AND AT BEST ACCOMPLISH REPATRIATION OF ORDER FLOW WILLIAM DONALDSON THE BIG BOARD'S CHAIRMAN SAID IN AN INTERVIEW UNDER THE NEW PRICING THE BIG BOARD WILL REBATE TO MEMBER BROKERAGE FIRMS 160 FOR EACH SMALL TRADE OF 100 TO 2099 SHARES FOR INVESTORS THAT'S MORE THAN FIVE TIMES WHAT THE EXCHANGE HAD BEEN PAYING 30 CENTS A TRADE FOR A 1000SHARE ORDER FOR A CUSTOMER A BROKERAGE FIRM WILL NOW PAY THE BIG BOARD 105 DOWN FROM 235 THE NEW CREDIT AS THE BIG BOARD CAREFULLY CALLS IT IS EQUIVALENT TO 16 CENTS A SHARE ON A 100SHARE ORDER AND 08 CENT ON A 200SHARE ORDER BY CONTRAST BERNARD MADOFF WHO HEADS A HIGHLY PROFITABLE SECURITIES FIRM THAT PAYS BROKERS FOR TRADES OFFERS CUSTOMERS ONE CENT A SHARE THE BROKER PAYS NOTHING THE BIG BOARD SAYS ITS NEW CREDIT WILL AMOUNT TO A 15 REDUCTION IN THE FEES ITS MEMBER FIRMS NOW PAY THE EXCHANGE FOR SMALL TRADES THAT WILL COST 185 MILLION A YEAR THE EXCHANGE SAYS IT WILL FOOT HALF THE BILL WITH ITS SPECIALISTS OR MARKET MAKERS PAYING THE REST SOME BROKERAGE FIRM EXECUTIVES PRAISED THE MOVE THEY SAID IT WILL BRING SOME BUSINESS PARTICULARLY SMALL TRADES BACK TO THE BIG BOARD IT WILL MAKE THE SMALLEST MARKET ORDERS THE MOST BENEFICIAL TO BIG BOARD BROKERAGE FIRMS WITH PRICES COMPETITIVE WITH OFFEXCHANGE OR THIRD MARKET BUSINESS IT'S A BIG STEP IN CHALLENGING THE SMALLORDER FLOW AND MAY BRING REGIONAL BUSINESS BACK TO THE EXCHANGE SAID CHRISTOPHER QUICK HEAD OF BIG BOARD FLOOR OPERATIONS FOR QUICK & REILLY GROUP INC THE NATION'S THIRD LARGEST DISCOUNT BROKER IT'S A DIRECT CHALLENGE TO BERNIE MADOFF MR MADOFF CONCEDED THE BIG BOARD MOVE IS A STEP IN THE RIGHT DIRECTION BUT HE SAID HE DOESN'T EXPECT TO LOSE BUSINESS OR RAISE HIS PAYMENTS THERE HAVE BEEN REGIONAL EXCHANGES THAT HAVE PAID MORE THAN A PENNY A SHARE IN THE PAST MR MADOFF SAID WE DIDN'T RESPOND TO THAT AND WE DON'T PLAN TO RESPOND TO THIS BESIDES MR MADOFF SAID OUR CLIENTS COME TO US FOR A LOT OF REASONS AND THE PENNY A SHARE IS CERTAINLY NOT THE MOST IMPORTANT THE 740 MILLION AVERAGE DAILY VOLUME OF TRADES EXECUTED ELECTRONICALLY BY MR MADOFF'S FIRM OFF THE EXCHANGE EQUALS 9 OF THE BIG BOARD'S TRADING VOLUME THE BIG BOARD'S REBATES AFFECT ONLY TRADES THAT PASS THROUGH ITS COMPUTERIZED SUPERDOT TRADING SYSTEM WHICH EACH DAY SPEEDS THROUGH MORE THAN 150000 RELATIVELY SMALL TRADES TRADES ON SUPERDOT REPRESENT ABOUT ONETHIRD OF THE EXCHANGE'S TOTAL SHARE VOLUME COMPUTERDRIVEN PROGRAM TRADES THOUGH THEY CAN INVOLVE HUNDREDS OF INDIVIDUAL STOCKS ARE ALSO HANDLED BY SUPERDOT BECAUSE THEY INVOLVE RELATIVELY SMALL ORDERS OF EACH STOCK THE BIG BOARD'S NEW PRICE STRUCTURE BECOMES EFFECTIVE FEB 1 AND THE EXCHANGE ISN'T RULING OUT FURTHER PRICE CUTS IF THE MOVE BRINGS IN A SUBSTANTIAL AMOUNT OF BUSINESS PEOPLE FAMILIAR WITH THE EXCHANGE SAY SOME RIVAL EXCHANGE OFFICIALS CONTEND THAT THE BIG BOARD WILL HAVE TO DO MORE TO REVERSE ITS SLIDE IN MARKET SHARE EVEN WITH THAT 15 CUT THEY ARE STILL NOT SUFFICIENTLY COMPETITIVE IT'S NOT ENOUGH TO EAT INTO OUR NUMBERS SAYS NICHOLAS A GIORDANO PRESIDENT OF THE RIVAL PHILADELPHIA STOCK EXCHANGE WHICH CATERS TO TRADING BY SMALL INVESTORS MEANWHILE THE BIG BOARD HAS APPLIED TO THE SECURITIES AND EXCHANGE COMMISSION FOR APPROVAL OF TWO RULES THAT WOULD MAKE TRADING A BIT MORE EFFICIENT IN ONE THE EXCHANGE IS SEEKING TO SPEED UP THE AVERAGE TIME IT TAKES TO EXECUTE AND CONFIRM A TRADE DONE THROUGH SUPERDOT TO 15 SECONDS FROM THE CURRENT 28 SECONDS IN ANOTHER THE BIG BOARD WANTS TO OFFER INVESTORS THE CHANCE TO CONTROL THEIR PRICE EXPOSURE ON TRADES ENTERED AT THE MARKET'S CLOSE THIS WILL BE DONE THROUGH SOCALLED LIMIT ON CLOSE ORDERS WHERE INVESTORS CAN DESIGNATE A PRICE AT WHICH THEIR TRADE CAN BE DONE SOMEWHAT SIMILAR TO SOCALLED STOP ORDERS DURING THE COURSE OF THE TRADING DAY SEPARATELY THE BIG BOARD SAID IT BROKE SEVERAL TRADING RECORDS IN 1992 THESE INCLUDE AVERAGE DAILY TRADING VOLUME 202 MILLION SHARES ANNUAL SHARE VOLUME 51 BILLION SHARES TOTAL COMPANY LISTINGS 2089 NEW LISTINGS 251 AND INITIAL PUBLIC STOCK OFFERINGS 165 9301140004 930114 REVIEW & OUTLOOK EDITORIAL END OF ILLUSIONS THE RETURN OF COALITION BOMBERS TO PUNISH SADDAM HUSSEIN SHOULD END ANY REMAINING ILLUSIONS ABOUT THE NATURE OF ENEMIES SUCH AS THIS IRAQ UNDER THE BAATH REGIME HAS NO INTENTION OF COMPLYING WITH THE NORMS OF THE CIVILIZED WORLD UNDOUBTEDLY PRESIDENT BUSH HAS DONE THE RIGHT THING LIKE A TAMER IN A CAGE OF TIGERS THE CIVILIZED WORLD MUST SHOOT LEST THE POLITICAL CARNIVORE LEAP FROM HIS PERCH TO DEVOUR SOMEONE THIS METAPHOR MAY NOT PROVE VERY DURABLE HOWEVER IT IS GOING TO BECOME INCREASINGLY DIFFICULT TO PREVENT AGGRESSIVE LEADERS SUCH AS SADDAM HUSSEIN FROM TRYING TO GAIN ACCESS TO TECHNOLOGIES AND EXPERTISE FOR THE PRODUCTION OF WEAPONS OF MASS DESTRUCTION INCLUDING CHEMICAL AND BIOLOGICAL WEAPONS WHICH ARE DIFFICULT TO MONITOR OR CONTROL AND MOST CERTAINLY THEY WILL BE DETERMINED TO ACQUIRE THOSE WEAPONS WHICH SERVE AS INSTRUMENTS OF INTIMIDATION AND OBEISANCE NOR ARE THESE INDIVIDUALS THOUGH TEMPORARILY CONTAINED LIKELY TO BE MOVED BY APPEALS TO THE HIGHER GOALS OF A UNITED NATIONS NEGOTIATION OR EVEN THE INTERESTS OF THEIR OWN POPULATIONS THEY USE THEIR OWN PEOPLE AS FODDER THEY ARE FIRST OF ALL MEGALOMANIACS AND IT IS THEIR NATURE TO SEEK OPPORTUNITIES TO EXPAND THAT POWER A WORLD ALLIANCE HAD TO PUSH BACK SADDAM BUT NO ONE KEPT SYRIA'S ASSAD OUT OF LEBANON AND IT WAS A GRIM SPECTACLE TUESDAY EVENING TO SEE IMAGES OF SERBIAN STRONGMAN RADOVAN KARADZIC FRESH FROM BUTCHERING SARAJEVO STANDING AMID THE SOFT GLOW OF AN ELEGANT HALLWAY IN GENEVA ANNOUNCING HIS INTENTION TO APPROVE A PLAN FOR PEACE SOMETHING MORE THAN PERIODICALLY CRACKING A LOUD WHIP MAY BE REQUIRED TO UNBURDEN THE WORLD OF RECIDIVIST AGGRESSORS SUCH AS THESE UP TILL NOW THOUGH IT HAS BEEN THE INSTINCT OF THE WEST TO FIND WAYS TO ACCOMMODATE ITSELF TO THEIR PRESENCE TO WORK AROUND THEM THROUGH DIPLOMACY THAT SEEKS TO CONSTRUCT A REGIONAL BALANCE OUR IRAQ POLICY INCLUDING THE DECISION NOT TO DRIVE SADDAM FROM POWER BEFORE SHUTTING DOWN THE WAR WAS BASED ON THE BELIEF THAT ATTEMPTING TO INTRODUCE A NEW POLITICAL SYSTEM IN IRAQ NAMELY SELFDETERMINATION MIGHT DESTABILIZE THE REGION THAT ILLUSION SHOULD HAVE DIED LAST NIGHT WE ACTED YESTERDAY PRECISELY BECAUSE IRAQ WAS AGAIN THREATENING TO DESTABILIZE THE REGION AND IN TIME WE SURELY WILL HAVE TO CRACK THE WHIP AGAIN AND THEN AGAIN CONTAINING A SADDAM IS SURELY A NECESSARY TASK AND YESTERDAY'S BOMBING RUN OUT OF THE GULF SHOULD SIT SQUARELY IN FRONT OF THAT FACTION WITHIN THE DEMOCRATIC CONGRESS THAT THINKS ALL THE COUNTRY'S DOMESTIC SOLUTIONS RESIDE IN DRAINING THE DEFENSE BUDGET THAT SURELY WOULD BE FOLLY BEYOND THIS EVENT THOUGH LIES THE NEED GENERALLY TO RETHINK POLICY TOWARD WORLD ACTORS SUCH AS SADDAM HUSSEIN IF THERE IS TO BE A NEW WORLD ORDER IT WILL BE VITALLY IMPORTANT TO CREATE DISINCENTIVES AND DETERRENCES FOR FUTURE SADDAMS WHOSE CAPACITY FOR DISRUPTING OUR EVOLVING SYSTEM OF INCREASINGLY COMPLEX GLOBAL RELATIONSHIPS IS SO OUT OF SCALE TO THEIR ACTUAL IMPORTANCE THE STABILITY OF THOSE GLOBAL RELATIONSHIPS WHICH WILL BE THE SOURCE OF THE ECONOMIC WELLBEING OF AMERICA'S WORKERS AND THEIR FAMILIES INTO THE NEXT CENTURY NOW CONSTITUTES OUR VITAL NATIONAL INTEREST MR BUSH WAS RIGHT NOT TO LEAVE THE IRAQI PROBLEM UNTENDED BEFORE DEPARTING OFFICE AND IT WAS REASSURING TO HEAR SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER SAY THAT THEY STAND SHOULDER TO SHOULDER WITH PRESIDENT BUSH IN SEEKING IRAQ'S COMPLIANCE WITH THE UN RESOLUTIONS WE HOPE THOUGH THAT WHEN THE DUST SETTLES THIS TIME THE POLICY MAKERS IN PRESIDENT CLINTON'S NEW ADMINISTRATION WILL ADDRESS THE DYING ILLUSION THAT AN ORDERLY AND CIVILIZED WORLD CAN LIVE WITH PREDATORS OF THE TYPE THAT SADDAM HUSSEIN REPRESENTS AFTER TWO TOURS OF DUTY ACROSS THE PERSIAN GULF IT SHOULD BE CLEAR THAT MERE ACCOMMODATION ISN'T GOING TO WORK 9301140003 930114 EXFOXBORO DIRECTOR TWO ASSOCIATES AGREE TO SEC SETTLEMENT BOSTON THE SECURITIES AND EXCHANGE COMMISSION SAID A FORMER DIRECTOR OF FOXBORO CO AND TWO ASSOCIATES AGREED TO PAY 21 MILLION IN PENALTIES AND DISGORGEMENT OF INSIDER TRADING PROFITS IN CONNECTION WITH THE 1990 SALE OF FOXBORO TO SIEBE PLC A UK ENGINEERING CONCERN THE CIVIL COMPLAINT SAID THE TWO ASSOCIATES OF PURNENDU CHATTERJEE THE FORMER DIRECTOR BOUGHT A TOTAL OF 52500 SHARES OF FOXBORO AT PRICES RANGING FROM 2921 TO 3607 A SHARE IN THE PERIOD LEADING UP TO THE ACQUISITION OF FOXBORO A MAKER OF INDUSTRIAL CONTROLS FOR 52 A SHARE IN ITS SUIT THE SEC CHARGED THAT PURNENDU CHATTERJEE GAVE MATERIAL NONPUBLIC INFORMATION TO ANJAN CHATTERJEE A MANAGEMENT CONSULTANT IN WESTPORT CONN WHO IS NO RELATION AND SUKUMAR SHAH A RESIDENT OF FRANCE ON OR BEFORE JUNE 11 1990 CONCERNING A COMING TENDER OFFER FOR FOXBORO SHARES PURNENDU AND ANJAN CHATTERJEE CONSENTED TO A FINAL JUDGMENT SETTLING THE CASE IN US DISTRICT COURT HERE WITHOUT ADMITTING OR DENYING THEIR GUILT THE SEC ALSO SAID THAT MR SHAH AGREED TO CONSENT TO THE FINAL JUDGMENT ANJAN CHATERJEE REALIZED A PROFIT OF 500475 ON HIS PURCHASES OF A TOTAL OF 32500 SHARES FROM JUNE 11 TO JUNE 18 AND MR SHAH REALIZED A PROFIT OF 143380 ON HIS PURCHASE OF 20000 SHARES ON JUNE 7 THE SEC SAID PURNENDU CHATTERJEE SAID HE SETTLED THE CASE TO AVOID THE COSTS AND DISTRACTION OF EXTENDED LITIGATION FRANKLIN B VELIE AN ATTORNEY AT CHRISTY & VIENER IN NEW YORK WHO REPRESENTS ANJAN CHATTERJEE ALSO SAID HIS CLIENT WAS SETTLING TO AVOID THE DISTRACTION AND EXPENSES OF LITIGATION MR SHAH'S ATTORNEY DIDN'T RETURN CALLS SEEKING COMMENT 9301140002 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 US POWS IN SOUTHEAST ASIA AFTER THE VIETNAM WAR BUT DID SHUNT ASIDE QUESTIONS ABOUT THEIR EXISTENCE THE COMMITTEE'S REPORT AND ITS PRAISE FOR RECENT COOPERATION FROM VIETNAM MAY HELP 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 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 HOWEVER THE REPORT DID FIND FAULT WITH LAOS 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 U S ADMINISTRATIONS SOMEHOW COVERED UP EVIDENCE THAT POWS WERE ALIVE THE BIGGEST POINT OF DISPUTE WITHIN THE COMMITTEE WAS OVER THE SIGNIFICANCE OF REPORTS OF LIVE POWS BEING SIGHTED IN SOUTHEAST ASIA IN RECENT YEARS DISCUSSION OF THESE LIVE SIGHTING REPORTS IS ALMOST THEOLOGICAL DESPITE SIGNING ON TO THE REPORT COMMITTEE VICE CHAIRMAN BOB SMITH R NH DISSENTED FROM ITS CONCLUSIONS ON LIVE SIGHTINGS SAYING I BELIEVE THAT THERE IS EVIDENCE THAT PEOPLE SURVIVED AFTER 1973 AND MAY BE ALIVE TODAY THERE IS EVIDENCE BUT NOT COMPELLING ENOUGH TO PROVE IT SEN KERRY QUICKLY RESPONDED NO LIVE SIGHTING REPORT HAS YET PANNED OUT 9301140001 930114 ABREAST OF THE MARKET INDUSTRIALS EDGE DOWN 108 POINTS IN CONTINUING DIRECTIONLESS TRADE BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LATE SPECULATIVE SELLING SHEARED AWAY BLUECHIP STOCKS' GROWTH BUT THE BROADER MARKET ENDED HIGHER THE DOW JONES INDUSTRIAL AVERAGE INCHED DOWN 108 POINTS TO 326356 BUT THE STANDARD & POOR'S 500STOCK INDEX JUMPED 199 POINTS TO 43303 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 092 POINT TO 23812 THERE WAS NO REAL DIRECTION TO THIS MARKET SAID EDWARD COLLINS EXECUTIVE VICE PRESIDENT OF INSTITUTIONAL TRADING AT DAIWA SECURITIES AMERICA WE JUST SPENT MOST OF THE DAY IN A VERY NARROW TRADING RANGE AS THEY HAVE SINCE THE BEGINNING OF THE YEAR STOCK PRICES BOUNCED UP AND DOWN IN DIRECTIONLESS TRADING FOR MOST OF THE SESSION RESISTANCE AND SUPPORT LEVELS SEEM TO EDGE CLOSER TO EACH OTHER EVERY DAY AND ISSUES REMAIN SUBJECT TO THE WHIMS OF PROGRAM TRADERS INVESTORS DUTIFULLY IGNORED NEARLY ALL OF THE SESSION'S MAJOR NEWS EVENTS IN THE MORNING THE COMMERCE DEPARTMENT SAID US RETAILERS' THIRDQUARTER AFTERTAX PROFITS FELL TO AN AVERAGE 25 OF SALES FROM 88 OF SALES IN THE PREVIOUS QUARTER EQUITY PRICES DIDN'T BUDGE AND THE USLED ALLIES LAUNCHED THEIR LONGANTICIPATED AIR STRIKE AGAINST IRAQ I THINK THE MILITARY ACTION TURNED OUT TO BE A MAJOR NONEVENT SAID JOHN CONLON JR MANAGING DIRECTOR AT ROTHSCHILD INC IT CAME AND WENT ACCORDING TO EVERYONE'S EXPECTATIONS DEFENSE STOCKS RESPONDED TO THE ATTACK GENERAL DYNAMICS ADVANCED 3 1/8 TO 109 1/8 ROCKWELL INTERNATIONAL GREW 1/2 TO 29 1/8 AND LORAL CORP GAINED 1 7/8 TO 50 SO DID OIL ISSUES MOBIL ADDED 1 TO 64 1/4 ATLANTIC RICHFIELD CLIMBED 1 3/8 TO 110 3/8 AND AMOCO WAS UP 1 1/8 TO 50 3/8 THE TEMPO OF TRADING PICKED UP FROM TUESDAY'S 239250000 SHARES 245020000 ISSUES CHANGED HANDS ADVANCERS ECLIPSED DECLINERS 1075 TO 743 TRANSPORTATION STOCKS CONTINUED TO LAG BEHIND UNDER THE BURDEN OF PROFITTAKING AS THE DOW JONES TRANSPORTATION AVERAGE TUMBLED 1531 POINTS OR 103 TO 146693 AIRLINES BESIEGED BY FARE PRESSURES AND WORRIES ABOUT HIGHER FUEL PRICES LED THE DROP UAL CORP PLUMMETED 4 1/4 TO 125 1/4 SOUTHWEST AIRLINES SLID 3/4 TO 28 1/8 AND AMR CORP WAS OFF 3/4 TO 67 DELTA AIR LINES FIRED THE LATEST ROUND IN A FARE WAR REFUSING TO MATCH THE DEEPDISCOUNT GROUP FARES ANNOUNCED MONDAY BY NORTHWEST AIRLINES AND THEN UNVEILING ITS OWN SHORTTERM FARE CUTS THE CARRIER SAID IT WILL OFFER DISCOUNTS ON INDIVIDUAL SEATS OF AS MUCH AS 30 FROM 14DAY ADVANCE PURCHASE LEVELS FOR TRAVEL FRIDAY THROUGH SUNDAY AND DISCOUNTS OF AS MUCH AS 40 FOR OFFPEAK TRAVEL MONDAY TO THURSDAY ITS STOCK LOST 1 3/8 TO 49 1/2 RAILROAD ISSUES ALSO SLIPPED OFF TRACK AFTER A LEHMAN BROTHERS ANALYST SAID SEVERAL WERE OVERPRICED CONSOLIDATED RAIL LOST 1 1/4 TO 49 AND NORFOLK SOUTHERN SLID 7/8 TO 63 TUGGING THE INDUSTRIALS LOWER WAS PHILIP MORRIS WHICH SANK 1 1/4 TO 73 3/4 THE COMPANY SAID SHIPMENTS OF MARLBORO CIGARETTES THE US'S MOSTPROFITABLE CONSUMER PRODUCT AND THE TOBACCO INDUSTRY'S NO 1 BRAND FELL 56 LAST YEAR IT IS THE STEEPEST DROP IN THE BRAND'S HISTORY AND SHARPER THAN THE INDUSTRY'S 04 DROP OVERALL ANOTHER DROPPING STOCK AMONG THE INDUSTRIALS WAS PFIZER A COWEN & CO ANALYST SLASHED SOME OF HIS ESTIMATES CITING THE PHARMACEUTICAL COMPANY'S EXPECTATION THAT IT WILL SPEND MORE ON RESEARCH AND DEVELOPMENT AND HIGHER CAPITAL SPENDING HE LOWERED HIS EARNINGS GROWTH RATE PROJECTIONS FOR 1992 TO 1996 TO 22 A YEAR FROM 25 THE ANALYST ALSO PARED HIS EARNINGS ESTIMATE FOR 1993 TO 385 A SHARE FROM 395 AND CUT HIS 1994 FORECAST TO 470 A SHARE FROM 495 PFIZER TUMBLED 1 3/4 TO 66 1/4 THE DOW JONES EQUITY MARKET INDEX ROSE 210 POINTS TO 41102 IN OTHER CORPORATE DEVELOPMENTS EASTMAN KODAK THE THIRD MOSTACTIVE BIG BOARD ISSUE ROSE 1/8 TO 47 3/4 THE ROCHESTER NY CAMERA MAKER'S EMPLOYEE NEWSPAPER REPORTED THAT THE COMPANY HAS IMPLEMENTED AN EXECUTIVE COMPENSATION PROGRAM THAT REQUIRES SUBSTANTIAL OWNERSHIP OF KODAK STOCK BY THE TOP 40 MANAGERS ALSO PAINEWEBBER ADDED THE ISSUE TO ITS FOCUS LIST OF AS MANY AS 30 STOCKS THAT IT RATES AS ATTRACTIVE ABOUT THREE MILLION EASTMAN SHARES WERE TRADED ANTHEM ELECTRONICS SURGED 3 1/2 TO 44 1/4 AFTER THE SAN JOSE CALIF SEMICONDUCTOR SYSTEMS PRODUCER UNVEILED A DISTRIBUTION DEAL LATE TUESDAY WITH INTEL ANTHEM SAID IT WILL DISTRIBUTE THE FULL LINE OF INTEL'S SEMICONDUCTOR AND ORIGINAL EQUIPMENT MANUFACTURER SYSTEMS BEGINNING FEB 1 INTEL MEANWHILE SKYROCKETED 8 1/8 TO 110 1/8 IN OVERTHECOUNTER ON A GLOWING EARNINGS REPORT PROMUS CO SLIPPED 4 3/4 TO 57 3/4 A SALOMON BROTHERS ANALYST LOWERED HIS INVESTMENT RATING ON PROMUS TO HOLD FROM BUY BASED ON THE STOCK'S PRICE THE ISSUE HAD MORE THAN TRIPLED IN THE PAST YEAR FAR OUTPACING THE GAMING INDUSTRY GROUP ACCORDING TO SALOMON PROMUS NOW TRADES AT 28 TIMES 1993 PROJECTIONS A 65 PREMIUM TO THE MARKET AND ITS STOCK HAS RISEN BY 28 SINCE MIDDECEMBER NEWS THAT PROMUS LOST OUT IN A BID FOR A 75 MILLION CASINO PROJECT IN KANSAS CITY MO ALSO HELPED TO SINK ITS STOCK HILTON HOTELS GOT THE CONTRACT INSTEAD ITS SHARES ROSE 2 3/8 TO 48 1/4 KROGER ADVANCED 2 TO 16 1/2 AFTER THE CINCINNATI SUPERMARKET CHAIN SAID PRELIMINARY FOURTHQUARTER RESULTS POINT TO AN INCREASE OF 10 OR MORE OVER THE 251 MILLION IN OPERATING CASH FLOW GENERATED IN THE YEARAGO FOURTH QUARTER IT ALSO IS LOOKING FOR AN INCREASE IN SAMESTORE SALES OF 1 OVER THE YEARAGO QUARTER TOTAL SALES ARE EXPECTED TO RISE 11 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 215 TO 39856 DECLINERS NUDGED OUT ADVANCERS 273 TO 271 VOLUME WAS 14981000 SHARES DOWN FROM TUESDAY'S 15529000 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 9301130174 930113 WHO'S NEWS TAB PRODUCTS CO TAB PRODUCTS CO PALO ALTO CALIF JOHN L DOYLE A FORMER HEWLETTPACKARD CO EXECUTIVE WAS NAMED TO THE BOARD OF THIS FURNITURE AND COMPUTER SUPPORT EQUIPMENT MAKER EXPANDING BOARD MEMBERSHIP TO FIVE 9301130173 930113 WHO'S NEWS STAGE II APPAREL CORP STAGE II APPAREL CORP NEW YORK JEFFREY ELGART 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT THIS DISTRIBUTOR OF MEN'S AND BOYS' APPAREL MR ELGART WHOSE POSITION IS NEWLY CREATED REJOINS STAGE II AFTER SERVING AS VICE PRESIDENT OF OPERATIONS AND FINANCE AT GITANO MENS & BOYS WEAR A UNIT OF GITANO GROUP INC IN NEW YORK AT STAGE II HE EARLIER SERVED AS SENIOR VICE PRESIDENT OPERATIONS 9301130172 930113 WHO'S NEWS GZA GEOENVIRONMENTAL TECHNOLOGIES INC GZA GEOENVIRONMENTAL TECHNOLOGIES INC NEWTON MASS JOSEPH P HEHIR WAS NAMED CHIEF FINANCIAL OFFICER MR HEHIR 48 YEARS OLD HAS SERVED AS ACTING CHIEF FINANCIAL OFFICER AND TREASURER SINCE WILLIAM ZOINO 60 STEPPED DOWN FROM THE POSITIONS EARLIER THIS YEAR THE COMPANY SAID GZA IS AN ENVIRONMENTAL CONSULTING CONCERN 9301130171 930113 WHO'S NEWS DU PONT CO DU PONT CO WILMINGTON DEL CL HENRY 51YEAROLD SENIOR VICE PRESIDENT WAS NAMED TO THE ADDED POST OF CHIEF FINANCIAL OFFICER OF THIS DIVERSIFIED CHEMICAL CONCERN EFFECTIVE ABOUT MIDYEAR HE WILL SUCCEED JOHN J QUINDLEN 60 WHO IS RETIRING LATER THIS YEAR THE COMPANY ALSO SAID ITS OFFICE OF THE CHAIRMAN WILL BE EXPANDED TO INCLUDE MR HENRY 9301130170 930113 WHO'S NEWS AMERICAN GREETINGS CORP AMERICAN GREETINGS CORP CLEVELAND MARY ANN CORRIGANDAVIS 41 YEARS OLD WAS NAMED PRESIDENT OF THIS CARD MAKER'S SUMMIT CORP UNIT WHICH MANAGES STORES THAT SELL AMERICAN GREETINGS PRODUCTS MS CORRIGANDAVIS PREVIOUSLY VICE PRESIDENT OF PRODUCT MANAGEMENT SUCCEEDS ALAN VILINSKY 43 WHO LEFT TO PURSUE OTHER INTERESTS THE COMPANY SAID MS CORRIGANDAVIS WILL BE SUCCEEDED BY DENNIS CHUPA 41 YEARS OLD WHO WAS VICE PRESIDENT OF THE CREATIVE DIVISION 9301130169 930113 MESABA AVIATION TRAFFIC MINNEAPOLIS MESABA AVIATION SAID ITS DECEMBER TRAFFIC ROSE 22 TO 225 MILLION REVENUE PASSENGER MILES FROM 184 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED DECLINED TO 46 FROM 523 MESABA A UNIT OF AIRTRAN CORP OPERATES AS NORTHWEST AIRLINK UNDER A MARKETING AGREEMENT WITH NORTHWEST AIRLINES 9301130168 930113 INTERNATIONAL THAILAND'S CONSUMER PRICES BANGKOK THAILAND THAILAND'S CONSUMER PRICES FELL 04 IN DECEMBER FROM NOVEMBER BUT WERE UP 3 FROM DECEMBER 1991 MAINLY BECAUSE OF HIGHER FOOD AND HOUSING PRICES THE BANK OF THAILAND SAID THE COUNTRY'S CONSUMER PRICE INDEX FELL TO 1314 IN DECEMBER FROM 1319 IN NOVEMBER BUT WAS UP FROM 1276 IN DECEMBER 1991 9301130167 930113 WHO'S NEWS FIDUCIARY TRUST CO INTERNATIONAL FIDUCIARY TRUST CO INTERNATIONAL NEW YORK OAKLEIGH B THORNE 60 YEARS OLD WAS NAMED A DIRECTOR OF THIS GLOBAL INVESTMENT MANAGEMENT FIRM THE APPOINTMENT OF MR THORNE WHO IS CHAIRMAN OF COMMERCE CLEARING HOUSE INC A DEERFIELD ILL PUBLISHER OF TAX AND BUSINESS LAW INFORMATION INCREASES THE BOARD TO 18 MEMBERS 9301130166 930113 TECHNOLOGY MEDICAL BOARDS ARE SAID TO BE LAX ON DOCTORS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL STATE MEDICAL BOARDS ARE FAILING TO CRACK DOWN ON BAD DOCTORS ACCORDING TO A NEW STUDY OFTEN CONCERNING THEMSELVES MORE WITH PHYSICIANS' CAREERS THAN PATIENTS' WELLBEING THE REPORT PUBLISHED YESTERDAY BY THE HEALTH RESEARCH GROUP OF PUBLIC CITIZEN A RESEARCH AND LOBBYING ORGANIZATION CRITICIZES ALMOST ALL 50 STATES FOR PROVIDING TOO LITTLE DISCIPLINE OF INCOMPETENT NEGLIGENT SUBSTANCE AND PATIENTABUSING DOCTORS THOUGH THE NUMBER OF DISCIPLINARY ACTIONS TAKEN BY STATES WAS ABOUT 6 HIGHER IN 1991 THAN IN 1989 THE BARELY 3000 ACTIONS ARE A PITTANCE COMPARED WITH THE 150000 TO 300000 AMERICANS INJURED OR KILLED EACH YEAR BECAUSE OF MEDICAL NEGLIGENCE PUBLIC CITIZEN SAID MOREOVER THE GROUP SAID ONLY 2000 OF THE ACTIONS TAKEN WERE SERIOUS INVOLVING LICENSE REVOCATION SUSPENSION OR PROBATION AMONG THE 10 MOST VIGILANT STATE BOARDS WHICH INCLUDE ALASKA GEORGIA IOWA AND OKLAHOMA SERIOUS DISCIPLINARY ACTION WAS TAKEN AGAINST 10 OF EVERY 1000 DOCTORS THE 10 LOWESTRANKED STATES INCLUDING MASSACHUSETTS NEW YORK AND PENNSYLVANIA SERIOUSLY DISCIPLINED ONLY ABOUT ONE OF EVERY 1000 DOCTORS THE BOARDS IN MASSACHUSETTS NEW YORK AND PENNSYLVANIA COULDN'T BE REACHED FOR COMMENT THE AMERICAN MEDICAL ASSOCIATION WHILE NOT DISPUTING PUBLIC CITIZEN'S FINDINGS SAID THE BLAME SHOULDN'T REST ENTIRELY WITH PHYSICIANS WHO USUALLY MANAGE TO WEED OUT INCOMPETENT COLLEAGUES OVER TIME PHYSICIANS DO NOT REFER PATIENTS TO OTHER PHYSICIANS THEY DO NOT TRUST SAID KIRK JOHNSON GENERAL COUNSEL FOR THE AMA AND THERE'S A COLLEGIAL ENVIRONMENT THAT WHEN THERE'S MORBIDITY OR MORTALITY AT A HOSPITAL THERE'S A SELFCORRECTING PROCESS THAT GOES ON EVERY DAY MANY STATES ARE TOO STRAPPED FOR CASH AND PERSONNEL TO AGGRESSIVELY INVESTIGATE AND DISCIPLINE PHYSICIANS OTHERS LIKE RHODE ISLAND POINTED TO TEMPORARY ADMINISTRATIVE HEADACHES LIKE THE 10MONTH ABSENCE OF A MEDICAL BOARD ATTORNEY TO EXPLAIN WHY THEY TOOK SO FEW DISCIPLINARY ACTIONS IN 1991 MOREOVER DOCTORS AREN'T REPORTING THEIR COLLEAGUES TO STATE BOARDS SAID MILTON W HAMOLSKY CHIEF ADMINISTRATOR OF THE RHODE ISLAND BOARD OF MEDICAL LICENSURE AND DISCIPLINE I KNOW THERE ARE PHYSICIANS WHO DO BAD THINGS THAT WE'RE NOT AWARE OF HE SAID WE SHOULD GET MUCH MORE REPORTING FROM OTHER PHYSICIANS BUT IN MANY CASES THE PROBLEMS REST WITH THE BOARDS MADE UP MOSTLY OF DOCTORS WHO MIGHT BE WARY OF DISCIPLINING THEIR COLLEAGUES SAID SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH GROUP IN WASHINGTON DC IN SOME STATES YOU HAVE A CLOSED CIRCLE OF DOCTORS PROTECTING DOCTORS DR WOLFE SAID YOU'VE GOT THAT MENTALITY OF THERE BUT FOR THE GRACE OF GOD GO I' WHERE THEY'RE JUST BEING NICE TO EACH OTHER MISPRESCRIBING DRUGS DRUG AND ALCOHOL ABUSE AND NEGLIGENT CARE ARE THE MOST COMMON OFFENSES FOR WHICH DOCTORS ARE DISCIPLINED OTHERS INCLUDE SEXUAL ABUSE OR SEXUAL MISCONDUCT WITH A PATIENT MENTAL OR PHYSICAL IMPAIRMENT OR CRIMINAL CONVICTIONS THE REPORT SAID BUT EVEN THE BEST DOCTORS MAKE MISTAKES SAID THE AMA'S MR JOHNSON IT CAN BE VERY DIFFICULT TO DISTINGUISH BETWEEN A ONETIME ERROR OF JUDGMENT IN A CRISIS AND A PATTERN OF NEGLIGENCE PUBLIC CITIZEN SAID STATE BOARDS COULD BETTER DISTINGUISH BETWEEN INCOMPETENT DOCTORS AND THOSE MERELY HAVING A BAD DAY BY FOLLOWING THE LEAD OF GEORGIA'S MEDICAL BOARD INSTEAD OF WAITING FOR COMPLAINTS FROM PATIENTS THE GEORGIA PANEL ACTS AS A SLEUTH DISPATCHING AGENTS TO CHECK PHARMACY RECORDS AND INVESTIGATING EVERY CASE IN WHICH A DOCTOR LEAVES THE EMPLOY OF A HOSPITAL NO MATTER THE REASON GIVEN WE'RE DEALING WITH PEOPLE'S LIVES SAID ANDREW WATRY EXECUTIVE DIRECTOR FOR THE GEORGIA COMPOSITE STATE BOARD OF MEDICAL EXAMINERS AN INCOMPETENT PHYSICIAN CAN WREAK MORE HAVOC THAN A BANK ROBBER 9301130165 930113 WHO'S NEWS SPINNAKER SOFTWARE CORP SPINNAKER SOFTWARE CORP CAMBRIDGE MASS PAUL F BRAUNEIS WAS NAMED CHIEF FINANCIAL OFFICER OF THIS SOFTWARE CONCERN MR BRAUNEIS 48 YEARS OLD IS FORMER VICE PRESIDENT OF FINANCE FOR M/ACOM INC A MAKER OF ELECTRONICS EQUIPMENT IN BURLINGTON MASS HE SUCCEEDS RONALD GOLDFUSS 49 WHO RESIGNED IN OCTOBER TO PURSUE OTHER INTERESTS 9301130164 930113 WESTERN GERMANY'S PRICES WIESBADEN GERMANY WESTERN GERMAN CONSUMER PRICES ROSE 01 IN THE MONTH TO MIDDECEMBER AND WERE UP 37 FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE SAID REVISING BOTH FIGURES DOWN 01 PERCENTAGE POINT FROM ITS PRELIMINARY ESTIMATE INFLATION FOR ALL OF 1992 AVERAGED 4 UP FROM 35 IN 1991 AND WAS THE HIGHEST AVERAGE SINCE 1982 THE STATISTICS OFFICE'S CONSUMER PRICE INDEX STOOD AT 1168 IN DECEMBER BASED ON 1985 PRICES BEING EQUAL TO 100 UP FROM 1167 IN MIDNOVEMBER 9301130163 930113 INTERNATIONAL HONG KONG TRADE DEFICIT GROWS HONG KONG THE MERCHANDISE TRADE DEFICIT IN HONG KONG WIDENED TO 148 BILLION HONG KONG DOLLARS US1906 MILLION IN NOVEMBER AS IMPORT GROWTH OUTSTRIPPED TOTAL EXPORTS DESPITE SHARPLY HIGHER REEXPORTS IN OCTOBER THE COLONY RECORDED A HK244 MILLION DEFICIT ALSO BECAUSE OF SURGING IMPORTS IMPORTS MEANWHILE SHOT UP 20 TO HK8511 BILLION REEXPORT TRADE COUNTS THOSE GOODS THAT ENTER HONG KONG AND LEAVE THE COLONY WITHOUT A MATERIAL CHANGE WHILE DOMESTIC EXPORTS ARE THOSE GENERATED IN HONG KONG 9301130162 930113 GREAT AMERICAN SHARES TENDERED CINCINNATI GREAT AMERICAN INSURANCE CO A UNIT OF PRIVATELY HELD AMERICAN FINANCIAL CORP SAID THAT 9552019 OF ITS COMMON SHARES WERE TENDERED PURSUANT TO ITS OFFER TO PURCHASE 5140973 COMMON SHARES OF STI GROUP INC STAMFORD CONN ON A PRO RATA ACCEPTANCE BASIS AT 725 A SHARE AMERICAN FINANCIAL CORP IS A HOLDING COMPANY FOR BUSINESSES IN THE FINANCIAL INSURANCE COMMUNICATIONS AND FOOD PRODUCTS MARKETS 9301130161 930113 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI KAREN QUINNQUINTIN 35 YEARS OLD AND DIRECTOR CORPORATE OFFICE RESOURCES WAS NAMED TO THE ADDITIONAL POSTS OF VICE PRESIDENT AND SECRETARY OF THIS AEROSPACE COMMERCIAL PRODUCTS AND FINANCIAL SERVICES CONCERN AS SECRETARY SHE SUCCEEDS RICHARD A MCWHIRTER 58 WHO WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AS PREVIOUSLY REPORTED 9301130160 930113 MARKETING & MEDIA PURCHASE BY EW SCRIPPS CINCINNATI EW SCRIPPS CO SAID IT INCREASED ITS STAKE IN SCRIPPS HOWARD BROADCASTING CO TO 86 FROM 804 THROUGH THE PURCHASE OF 576680 SHARES OF SCRIPPS HOWARD'S COMMON STOCK FROM AMERICAN FINANCIAL CORP A CLOSELY HELD CINCINNATI HOLDING COMPANY THE MEDIA CONCERN SAID IT BOUGHT THE SHARES FOR 283 MILLION OR 49 A SHARE SCRIPPS HOWARD BROADCASTING ALSO BASED HERE OPERATES 10 TELEVISION STATIONS FIVE RADIO STATIONS AND CABLE TV SYSTEMS EW SCRIPPS OPERATES 21 NEWSPAPERS IN ADDITION TO CABLE TV SYSTEMS AND IS A SYNDICATOR AND LICENSER OF NEWS FEATURES AND COMICS 9301130159 930113 WHO'S NEWS MITEL NAMES MILLARD PRESIDENT KANATA ONTARIO MITEL CORP SAID JOHN MILLARD 54 YEARS OLD HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS EQUIPMENT COMPANY DR MILLARD SUCCEEDS ANTHONY GRIFFITHS 62 WHO WILL CONTINUE AS CHAIRMAN DR MILLARD WHO HAS A DOCTORATE IN COMMUNICATIONSELECTRONICS FROM NEW YORK UNIVERSITY HAS HAD A LENGTHY CAREER IN THE TELECOMMUNICATIONS EQUIPMENT INDUSTRY HE WAS MOST RECENTLY SENIOR VICE PRESIDENT OF NEC AMERICA INC A SUBSIDIARY OF NEC CORP A JAPANESE ELECTRONIC AND ELECTRICAL EQUIPMENT COMPANY 9301130158 930113 WHO'S NEWS KEYCORP KEYCORP ALBANY NY BRIAN P DOHERTY 34 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF KEY BROKERAGE CO A UNIT OF THIS MULTIREGIONAL BANK HOLDING COMPANY HE WAS NATIONAL SALES MANAGER FOR THE BROKERAGE UNIT AND SUCCEEDS JOHN P MASTRIANI 40 MR MASTRIANI WAS RECENTLY NAMED CHIEF EXECUTIVE OF THE NEWLY FORMED KEYCORP TRUST & INVESTMENT MANAGEMENT GROUP 9301130157 930113 THE END RESULT MAY BE QUIETER KARAOKE MACHINES AND BOOMBOXES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JUDGING FROM ITS NAME ALONE ONE MIGHT PICTURE JAPAN'S 12TH SCIENCE AND TECHNOLOGY FORUM AS AN ASSEMBLY OF DUSTY ACADEMICS DRONING ON ABOUT NEURALNETWORK ALGORITHMS OR NEW ADVANCES IN ENZYME TECHNOLOGY DON'T COUNT ON IT THE NATION'S SCIENCE AND TECHNOLOGY AGENCY IS THINKING BIGGER PROMOTING SUCH IDEAS AS THE HARMONY OF MANKIND AND SOCIETY AND THE DREAMS OF SCIENCE AND TECHNOLOGY THE AGENCY WILL PUT UP 40 JAPANESE AND FOREIGN RESEARCHERS IN A HOTEL NEAR NAGOYA THIS MONTH TO DISCUSS SUCH SUBJECTS AS SCIENCE AND TECHNOLOGY AS A PROCESS OF SELFACTUALIZATION WHY ALL THE NEW AGE BUZZWORDS OUR BASIC IDEA IS THE RECOGNITION THAT THE DREAM IS THE SOURCE OF ENERGY IN DEVELOPMENT IN SCIENCE AND TECHNOLOGY SAYS HISAKAZU SASAKI CHIEF OF THE AGENCY'S OFFICE OF RESOURCES AND A CONFERENCE ORGANIZER WE'D LIKE TO DISCUSS THE DREAM OF SCIENCE AND TECHNOLOGY IN THIS FORUM TO FIND OUT THE WAY TO ENCOURAGE THE SCIENCE AND TECHNOLOGY MOVEMENT CONFEREES WILL ATTEND SUCH WORKSHOPS AS DREAMS FOR SCIENCE AND TECHNOLOGY AND THEIR METAMORPHOSIS TO CREATE A NEW FRAMEWORK OF DREAMS AND THE DREAM AND SPIRIT OF MANUFACTURING WE DO NOT KNOW OURSELVES ASSERTS NEUROSCIENTIST GEN MATSUMOTO WHO IS ORGANIZING A SESSION TITLED THE END OF SCIENCE AND TECHNOLOGY AND ITS BEGINNING HE ADDS WE HAVE NOW CONSTRUCTED A TECHNOLOGY THAT IS NOT ADAPTED TO OURSELVES WHICH IS VERY DANGEROUS WE SHOULD KNOW THE LOGIC OF LIVING THINGS AND ON THIS BASIS EXTEND OUR TECHNOLOGY THE FORUM IS JUST THE LATEST OF JAPAN'S FREQUENT ATTEMPTS TO COMBINE REDUCTIONIST WESTERN SCIENCE AND HOLISTIC EASTERN SPIRITUALISM JAPAN'S HIGHTECH CORPORATIONS NOW SPEAK REGULARLY OF REALIZING THE DREAMS OF HUMANITY WHILE AN ENTIRE NEW SCIENCE CITY NEAR KYOTO IS OSTENSIBLY DEVOTED TO INTEGRATING CULTURE AND SCIENCE IN A WAY THAT WILL CONTRIBUTE GREATLY TO THE FUTURE OF ALL HUMAN BEINGS THERE MAY HOWEVER BE SOME SELFINTEREST UNDERLYING THE LOFTY NOTIONS SOCIETY IT SEEMS HAS LOST INTEREST IN SCIENCE AND TECHNOLOGY SAYS THE AGENCY'S MR SASAKI STUDENTS AND YOUNG PEOPLE HAVE STARTED TO THINK THAT THE SELECTION OF SCIENCE AND TECHNOLOGY FIELDS ARE NOT SUCH GOOD SELECTIONS FOR THEIR FUTURE NOT SO PROFITABLE TO IMPROVE THIS SITUATION THE DREAM IS VERY IMPORTANT 9301130156 930113 WHOLE FOODS MARKET OFFERING AUSTIN TEXAS WHOLE FOODS MARKET INC SAID IT COMPLETED A PUBLIC OFFERING OF 12 MILLION COMMON SHARES FOR 2950 A SHARE OR 354 MILLION THE COMPANY SOLD 646000 SHARES WITH CERTAIN SHAREHOLDERS SELLING THE REMAINING 554000 THE GROCERY STORE CHAIN SAID THAT PROCEEDS WOULD BE USED TO REDUCE DEBT AND FOR ACQUISITIONS AND OTHER GENERAL CORPORATE PURPOSES THE COMPANY CURRENTLY HAS ABOUT 47 MILLION SHARES OUTSTANDING WHOLE FOODS STOCK CLOSED YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING AT 2950 A SHARE UNCHANGED 9301130155 930113 TREASURY PLANS TO SELL 232 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 166 BILLION ON THE PUBLIC DEBT WITH THE SALE TUESDAY OF ABOUT 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 398 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON APRIL 22 1993 AND JULY 22 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794C36 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794E91 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9301130154 930113 TECHNOLOGY NEW IBM VENTURE PROVIDES A GLIMPSE OF 1STYEAR RESULTS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP'S AMBITIOUS NEW VENTURE INTO RUNNING OTHER COMPANIES' COMPUTER SYSTEMS POSTED A SMALL PROFIT ON ROUGHLY 1 BILLION IN REVENUE IN 1992 ITS FIRST FULL YEAR OF BUSINESS OFFERING AN EARLY GLIMPSE OF THE CLOSELY WATCHED VENTURE'S PERFORMANCE THE CHAIRMAN OF THE UNIT DENNIE M WELSH SAID IN AN INTERVIEW THAT HE EXPECTS TO SEE ITS 1993 REVENUE LEAP TO MORE THAN 4 BILLION HE SAID SERVICES PERFORMED FOR IBM ACCOUNT FOR ABOUT HALF OF THE ESTIMATED REVENUES IN BOTH 1992 AND 1993 AMID ITS DEEPEST CRISIS EVER IBM IS PINNING ENORMOUS HOPES ON THE NEW UNIT INTEGRATED SYSTEMS SOLUTIONS CORP WHICH IT CREATED IN MAY 1991 CHAIRMAN JOHN F AKERS HAS SAID IBM'S TURNAROUND WILL COME FROM THE BOOMING SOFTWARE AND SERVICES MARKETS AS IBM'S TRADITIONAL CORE BUSINESS IN MAINFRAME COMPUTERS FADES ISSC IS COMPETING AGAINST SUCH POWERHOUSES AS GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS UNIT AND ANDERSEN CONSULTING IN A MARKET ESTIMATED AT 7 BILLION TO 10 BILLION ANNUALLY MR WELSH SAID THAT HE THINKS HALF OF ALL US COMPANIES WILL EVENTUALLY TURN TO AN OUTSIDER TO HANDLE THEIR DATA PROCESSING MR WELSH WOULDN'T DISCLOSE ISSC'S EXACT 1992 PROFIT HE SAID THE UNIT WANTS TO SHOW A RETURN ON EQUITY OF 20 FAR HIGHER THAN IBM'S OVERALL RETURN BUT HASN'T YET HIT THAT TARGET IBM TOOK SEVERAL STEPS YESTERDAY TO BEEF UP ISSC'S CORPORATE STRUCTURE IT PROMOTED MR WELSH A 50YEAROLD IBM VETERAN IN THE HIGHTECHNOLOGY GOVERNMENTCONTRACTS BUSINESS TO THE TITLE OF ISSC'S CHAIRMAN IBM ALSO CREATED A 10PERSON BOARD OF DIRECTORS FOR THE UNIT AND PICKED SAMUEL PALMISANO 41 TO SUCCEED MR WELSH AS ITS PRESIDENT MR PALMISANO HAD BEEN A SENIOR IBM EXECUTIVE IN JAPAN SOME IN THE INDUSTRY SPECULATED THAT IBM WAS DRESSING UP ISSC FOR A POSSIBLE SALE OR SPINOFF BUT MR WELSH SAID SUCH A MOVE ISN'T IMMINENT BECAUSE ISSC WANTS TO KEEP TIGHT LINKS TO IBM'S RESEARCH MARKETING AND DEVELOPMENT 9301130153 930113 FANNIE MAE PROFIT ROSE IN 4TH QUARTER YEAR RECORD ISSUANCE CITED WASHINGTON FEDERAL NATIONAL MORTGAGE ASSOCIATION REPORTED STRONG GAINS IN FOURTHQUARTER AND FULLYEAR EARNINGS ON A RECORD ISSUANCE OF MORTGAGEBACKED SECURITIES AND SHARP GROWTH IN ITS INVESTMENT PORTFOLIO THE COMPANY KNOWN AS FANNIE MAE EARNED 4264 MILLION OR 155 A SHARE IN THE FOURTH QUARTER UP 18 FROM 361 MILLION OR 131 A SHARE IN THE YEAREARLIER PERIOD FOR THE YEAR EARNINGS ROSE 19 TO 16 BILLION FROM 14 BILLION IT WAS A SPECTACULAR YEAR AND I SEE LITTLE TO DISRUPT THE GROWTH IN 1993 AND BEYOND SAID ANALYST JONATHAN GRAY WHO FOLLOWS THE COMPANY FOR SANFORD C BERNSTEIN & CO IN NEW YORK CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES JOHNSON SAID HE EXPECTS 1993 TO BE THE STRONGEST YEAR FOR HOME SALES SINCE 1979 LEADING TO ANOTHER EXTREMELY GOOD YEAR FOR THE COMPANY THE COMPANY'S EARNINGS COME PRIMARILY FROM TWO SOURCES FEES EARNED FROM BUYING MORTGAGES AND PACKAGING THEM FOR RESALE TO INVESTORS AS SECURITIES AND INTEREST COLLECTED ON THE COMPANY'S OWN INVESTMENT PORTFOLIO OF MORTGAGES MORTGAGEBACKED SECURITIES ISSUES SOARED 74 TO 577 BILLION IN THE FOURTH QUARTER FROM 331 BILLION IN THE YEAREARLIER PERIOD THE COMPANY ISSUED A RECORD 194 BILLION OF SECURITIES IN 1992 UP 72 FROM 1129 BILLION IN 1991 INTEREST INCOME ON THE COMPANY'S INVESTMENT PORTFOLIO ROSE 19 TO 5442 MILLION IN THE QUARTER FROM 4569 MILLION IN THE YEAREARLIER PERIOD THE COMPANY'S INVESTMENT PORTFOLIO GREW 23 DURING THE YEAR FUELING A 16 INCREASE IN INTEREST INCOME TO 21 BILLION FROM 18 BILLION CHARGEOFFS ON FORECLOSED PROPERTIES ROSE 18 TO 244 MILLION DURING THE YEAR ATTRIBUTABLE TO AN INCREASE IN MORTGAGE PURCHASES AND SECURITIZATIONS AS WELL AS TO THE WEAK NEW ENGLAND AND CALIFORNIA ECONOMIES 9301130152 930113 POLITICS & POLICY CLINTON'S SLOW START PICKING A TEAM AND POLICIES DOOMS HIS HOPES OF HITTING THE GROUND RUNNING BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENTELECT CLINTON'S SLOW START IN ASSEMBLING THE PERSONNEL AND DEVISING THE POLICIES OF HIS NEW ADMINISTRATION WHICH TAKES OFFICE A WEEK FROM TODAY HAS DOOMED HIS HOPES OF HITTING THE GROUND RUNNING ON POLICY MR CLINTON WILL WAIT ABOUT THREE WEEKS BEFORE UNVEILING EVEN THE OUTLINES OF HIS ECONOMIC PLAN EARLIER HE SUGGESTED THAT WOULD BE ACCOMPLISHED WITHIN DAYS OF TAKING OFFICE SIMILARLY HIS PLEDGE TO PROPOSE A RADICAL OVERHAUL OF THE US HEALTH CARE SYSTEM IN HIS FIRST 100 DAYS SEEMS CERTAIN TO MISS ITS MARK ONE REASON IS THAT THE PRESIDENTELECT IS BEHIND IN STAFFING THE NEW ADMINISTRATION HE HAD HOPED TO HAVE HUNDREDS OF SUBCABINET APPOINTMENTS MADE BY THE TIME OF HIS INAUGURATION INSTEAD MOST OF THE TOP JOBS JUST BELOW THE SECRETARY LEVEL HAVEN'T YET BEEN FILLED IN MOST AGENCIES WITH THE TREASURY DEPARTMENT BEING A POSSIBLE EXCEPTION EVEN MORE WORRISOME TO LONGTIME WASHINGTON OBSERVERS IS THAT TOP WHITE HOUSE STAFF POSITIONS WHICH ARE USUALLY THE FOCAL POINT FOR DECISIONMAKING IN THE MODERN PRESIDENCY HAVEN'T YET BEEN FILLED THOUGH SOME ANNOUNCEMENTS ARE EXPECTED AS EARLY AS TODAY AND SOME OF MR CLINTON'S OWN SUPPORTERS WORRY THAT MANY OF THOSE BEING SELECTED FOR LEADING WHITE HOUSE JOBS LACK THE EXPERIENCE AND COMPETENCE FOR THE PIVOTAL POSITIONS THIS WILL HAVE TO BE THE LEAST SUCCESSFUL TRANSITION I'VE SEEN SINCE 1960 IF JUDGED ON THE SPEED OF DECISIONMAKING SAYS BROOKINGS INSTITUTION SCHOLAR STEPHEN HESS IT'S VERY WORRISOME MR CLINTON MET HIS PRECHRISTMAS DEADLINE FOR NAMING HIS CABINET BUT HE DID SO AT THE EXPENSE OF DEVELOPING DETAILED POLICY POSITIONS ONLY IN THE PAST WEEK HAVE CABINET OFFICERS AND SENIOR TRANSITION AIDES FINALLY HELD THEIR FIRST SERIOUS POLICY MEETINGS ON THE KEY ECONOMIC AND HEALTH CARE PLANS AND NEITHER MEETING BY DESIGN PRODUCED ANY DECISIONS ACCORDING TO INSIDERS SUBCABINET APPOINTMENTS HAVE BEEN DELAYED FOR A VARIETY OF REASONS FOR ONE MR CLINTON INTENT ON SHOWING DIVERSITY IN HIS APPOINTMENTS IS SEEKING WOMEN AND MINORITIES TO NAME TO TOP POSTS AS RECENTLY AS THIS WEEK HIS AIDES WERE STILL SCOURING WASHINGTON FOR RESUMES FROM BLACKS TO FILL APPOINTED POSITIONS MORE IMPORTANTLY MR CLINTON AND HIS WIFE ARE PERSONALLY REVIEWING APPOINTMENTS TO HUNDREDS OF SUBCABINET POSTS AT THE SAME TIME THAT THEY ARE ALSO REVIEWING POLICY OPTIONS CREATING A BOTTLENECK AT THE TOP THAT COULD COME TO PLAGUE THE INCOMING ADMINISTRATION AFTER AIDES TO MR CLINTON WORK WITH THE CABINET SECRETARIES TO WHITTLE DOWN LISTS OF PROSPECTIVE JOB CANDIDATES TO A HANDFUL MR CLINTON HIMSELF IS SAID TO PERUSE THE LIST OF FINALISTS HIMSELF AND MAKE DECISIVE NOTATIONS SUCH MICROMANAGEMENT OF SUBCABINET JOBS NOT ONLY SLOWS DOWN DECISIONMAKING BUT ALSO HAS THE POTENTIAL TO CAUSE TURF BATTLES AND ONE ALREADY APPEARS TO HAVE BROKEN OUT AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE CLINTON TEAM LED BY VICE PRESIDENTELECT AL GORE IS PRESSING TO HAVE FORMER NEW YORK DEMOCRATIC REP THOMAS DOWNEY APPOINTED TO A SENIOR POST THERE BUT SECRETARYDESIGNATE DONNA SHALALA IS SAID TO BE RESISTING HAVING ALREADY ACCEPTED AT LEAST TWO OTHER APPOINTEES INSISTED UPON BY THE CLINTON FORCES SIMILAR CONTRETEMPS HAVE ARISEN IN OTHER AGENCIES SUCH AS THE DEFENSE DEPARTMENT SOMETIME THIS WEEK MR CLINTON IS EXPECTED TO NAME THE REST OF HIS WHITE HOUSE STAFF AND MANY OF THOSE APPOINTED AREN'T EXPECTED TO HAVE MUCH WASHINGTON EXPERIENCE WHITE HOUSE EXPERTS ARE QUESTIONING THE WISDOM OF GIVING TWO TOP WHITE HOUSE POSTS TO WASHINGTON OUTSIDERS ARKANSAS BUSINESS EXECUTIVE THOMAS MCLARTY WHO WILL BE CHIEF OF STAFF AND NEW YORK ATTORNEY HAROLD ICKES WHO IS LIKELY TO BE NAMED HIS DEPUTY IF MR CLINTON DOESN'T HAVE HALF OF HIS STAFF WITH EXPERIENCE IN WASHINGTON IT'S A MISTAKE SAYS JAMES CANNON A FORMER WHITE HOUSE AIDE TO RONALD REAGAN WHO HAS CONDUCTED STUDIES ON THE OFFICE TO BE SURE SOME OF THOSE WHO ARE EXPECTED TO GET TOP WHITE HOUSE JOBS ARE OLD WASHINGTON HANDS INCLUDING CLINTON ADVISERS GEORGE STEPHANOPOULOS JOHN PODESTA ALEXIS HERMAN MARK GEARAN AND MARCIA HALE BUT MANY OTHERS WILL COME FROM OUTSIDE THE BELTWAY INCLUDING MR ICKES RAHM EMANUEL A CHICAGO FUNDRAISER REGINA T MONTOYA A DALLAS LAWYER CAROL RASCO AN AIDE IN ARKANSAS TO MR CLINTON SKIP RUTHERFORD WHO WORKED FOR MR MCLARTY AND DEE DEE MYERS THE CLINTON PRESS SECRETARY WHO COMES FROM CALIFORNIA SOME OF THE DEMOCRATIC PARTY'S ABLEST STRATEGISTS SUCH AS TOM DONILON A FORMER CARTER ADMINISTRATION OFFICIAL WHO IS LIKELY TO TAKE A JOB AT THE STATE DEPARTMENT AND PAUL BEGALA OF THE CLINTON CAMPAIGN AREN'T EXPECTED TO WORK IN THE WHITE HOUSE THIS WOULD LEAVE A BIG POLITICAL VOID OTHER DEMOCRATS SAY AND THERE'S CONCERN ABOUT HOW SOME OF THOSE WHO ARE GOING TO THE WHITE HOUSE WILL BE USED THE RESPECTED MR STEPHANOPOULOS WILL APPARENTLY NOT ONLY BE THE COMMUNICATIONS CHIEF BUT ALSO WILL TAKE A MAJOR ROLE IN CONDUCTING DAILY PRESS BRIEFINGS THAT CRITICS BELIEVE WOULD BE A POOR USE OF HIS TIME DISTRACTING HIM FROM LARGER EFFORTS TO SHAPE THE CLINTON MESSAGE THESE RELATIVE WEAKNESSES IN EXPERIENCE AND USE OF TIME SUGGEST MR CLINTON MAY INSIST ON RUNNING THINGS HIMSELF HE SEEMS TO WANT TO MAKE EVERY DECISION AND HOLD ON TO EVERY BIT OF DATA SAYS MR HESS HE CAN RUN ARKANSAS THAT WAY HE CAN EVEN RUN HIS CAMPAIGN THAT WAY BUT HE SIMPLY MUST LEARN THAT HE CAN'T DO EVERYTHING IN WASHINGTON YOU HAVE TO DELEGATE LIKE PREVIOUS PRESIDENTS MR CLINTON HOPES TO TAKE ADVANTAGE OF THE HONEYMOON PERIOD OF HIS EARLY DAYS IN OFFICE TO PUSH THROUGH SOME OF HIS MOST IMPORTANT AND CONTROVERSIAL PROGRAMS BUT THE LONGER IT TAKES FOR HIM TO GET HIS POLICIES MOVING THE MORE OPPOSITION WILL BUILD UP IN CONGRESS AND IN LOBBYING GROUPS TO DEFEAT THOSE PROGRAMS WHEN YOU HAVE DELAY IN THE APPOINTMENTS AND WHEN YOU DELAY IN CLARIFYING YOUR AGENDA INTEREST GROUPS HAVE A BETTER CHANCE OF ORGANIZING TO PREVENT THE CHANGE YOU WANT SAYS JAMES THURBER OF AMERICAN UNIVERSITY IN WASHINGTON LOBBYING GROUPS ALREADY ARE ORGANIZING TO BEAT BACK SOME CLINTON PROPOSALS COALITIONS OF BUSINESS GROUPS ARE FAR ALONG IN PLANNING WAYS TO UNDERCUT PROPOSALS TO RAISE INDIVIDUAL TAX RATES TO DENY THE DEDUCTION FOR THE HIGH SALARIES THAT COMPANIES PAY TO THEIR EXECUTIVES AND TO INCREASE THE GASOLINE TAX IN THE MEANTIME MR CLINTON HASN'T EVEN GOTTEN AROUND TO MAKING SUCH PROPOSALS AND ISN'T EXPECTED TO ANYTIME SOON MR CLINTON PROMISED TO UNVEIL AN ECONOMIC PLAN AS HIS FIRST ORDER OF BUSINESS AFTER TAKING OFFICE BUT THAT WILL NOW HAVE TO WAIT AIDES SAY THAT THE INCREASE IN BUDGET DEFICIT PROJECTIONS PUT OUT LAST WEEK BY THE WHITE HOUSE WILL FORCE MR CLINTON TO HOLD OFF PRESENTING EVEN THE OUTLINES OF HIS PLAN FOR PERHAPS 20 DAYS OR SO A DETAILED PLAN PROBABLY WON'T COME UNTIL MARCH AT THE EARLIEST THEY SAY MR CLINTON ALSO PLEDGED TO INTRODUCE A COMPREHENSIVE OVERHAUL OF THE US HEALTH CARE SYSTEM WITHIN THE FIRST 100 DAYS OF HIS ADMINISTRATION ALTHOUGH HE MIGHT UNVEIL SOMETHING IN THAT TIME HIS AIDES INSIST IT WILL BE SWEEPING AND ON TIME CRITICAL DETAILS ARE LIKELY TO BE LACKING AND WON'T BE HAMMERED OUT FOR ANOTHER SEVERAL MONTHS REP PETE STARK D CALIF WHO HEADS A HOUSE HEALTH SUBCOMMITTEE SAYS HE EXPECTS ONLY BROAD SPECIFICATIONS FOR A HEALTH PLAN DURING THE PERIOD AND ADDS IT'LL TAKE US A YEAR TO FILL IN THE DETAILS CLINTON AIDES VIGOROUSLY DEFEND MR CLINTON'S TIMING ASSERTING THAT HE IS MOVING ALONG SMARTLY ON BOTH POLICIES AND PERSONNEL I DON'T THINK HE FEELS BEHIND HE'S IN VERY GOOD SPIRITS SAYS THE INCOMING CHIEF OF STAFF MR MCLARTY THE WHITE HOUSE STAFF IN PARTICULAR MR MCLARTY SAYS WILL BE READY FOR BUSINESS AFTER THE INAUGURATION WE EXPECT TO BE AT OUR DESK READY TO RECEIVE PHONE CALLS AND RETURN PHONE CALLS 9301130151 930113 OTC FOCUS TECHNOLOGY STOCKS APPLE DOWNGRADE PUSH INDEX DOWN 295 POINTS TO 67945 BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEVERAL SMALL TECHNOLOGY STOCKS DISAPPOINTED INVESTORS AND APPLE COMPUTER FELL 4 ON AN ANALYST'S DOWNGRADE PUSHING DOWN THE BROADER OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX ENDED WITH A LOSS OF 295 OR 043 TO 67945 AFTER RECOVERING FROM THE DAY'S LOW OF 67704 DECLINING ISSUES OUTNUMBERED ADVANCERS 1368 TO 1263 ON TOTAL VOLUME OF 2338 MILLION SHARES UP FROM MONDAY'S 1957 MILLION SHARES IT ISN'T ANY WATERSHED EVENT SAID JERRY NEWMAN AN INSTITUTIONAL TRADER WITH COWEN & CO IN SAN FRANCISCO IT WAS COMBINATION OF ANALYSTS' CUTTING SOME NUMBERS AND SELLING PRESSURE IN TECHNOLOGY SEMICONDUCTOR STOCKS STUMBLED INTEL EASED 3/8 TO 102 THOMAS THORNHILL III MANAGING DIRECTOR AT MONTGOMERY SECURITIES SAID THE US SEMICONDUCTOR INDUSTRY ASSOCIATION'S BOOKTOBILL RATIO WHICH MEASURES THREE MONTHS OF ORDERS AGAINST THREE MONTHS OF BILLINGS IS ACTUALLY POSITIVE FOR DECEMBER RESULTS EVEN THOUGH MANY INVESTORS INTERPRETED IT NEGATIVELY THE MEASUREMENT WAS 113 BELOW MANY WALL STREET EXPECTATIONS OF 115 OR 117 THIS IS JUST A RATIO WHAT IS MORE IMPORTANT IS THAT THE GROWTH RATE OF ORDERS IS 38 AND THE GROWTH RATE OF BILLINGS IS 36 COMPARED TO LAST YEAR MR THORNHILL SAID APPLE COMPUTER FELL 2 5/8 TO 61 1/2 THE SHARES DROPPED AFTER DEAN WITTER REYNOLDS LOWERED ITS RATING TO NEUTRAL FROM BUYRECOMMENDED DEAN WITTER ANALYST EUGENE GLAZER SAID HE ALSO LOWERED HIS EARNINGS ESTIMATE FOR FISCAL 1993 WHICH ENDS IN SEPTEMBER TO 425 A SHARE FROM 465 HE LEFT HIS ESTIMATE FOR THE FIRST QUARTER ENDED IN DECEMBER UNCHANGED AT 125 A SHARE MR GLAZER SAID HE'S CONCERNED ABOUT APPLE'S ABILITY TO MEET DEMAND FOR ITS PRODUCTS ESPECIALLY NEWER POPULAR ITEMS SUCH AS ITS POWERBOOK PORTABLE COMPUTERS MR GLAZER SAID APPLE FACES SHORTAGES OF PARTS MOREOVER HE SAYS THAT GIVEN THE RISE OF APPLE'S SHARES INTO THE 60S I JUST FELT THAT NOW'S THE TIME TO BE MORE CONSERVATIVE NETWORK SYSTEMS LOST 2 1/2 TO 10 1/2 AFTER PIPER JAFFRAY LOWERED ITS INVESTMENT RATING TO REASONABLY PRICED FROM ACCUMULATE CITING WEAKENING COMPANY FUNDAMENTALS THE MAKER OF DATA COMMUNICATIONS EQUIPMENT AND SOFTWARE SAID MONDAY THAT FOURTHQUARTER REVENUE WAS ABOUT 5 MILLION BELOW ANALYSTS' ESTIMATES DUE TO DELAYS IN TESTING CERTAIN PRODUCTS PIPER JAFFRAY LOWERED ITS 1992 FOURTHQUARTER EARNINGS ESTIMATE TO 18 CENTS A SHARE FROM 25 CENTS THE MINNEAPOLIS COMPANY EARNED 18 CENTS A SHARE IN THE YEARAGO FOURTH QUARTER AFTER A CHARGE OF 10 CENTS A SHARE MARCAM A SOFTWARE COMPANY PLUNGED 5 3/4 TO 21 1/4 AFTER ALEX BROWN & SONS REMOVED MARCAM FROM ITS EMPHASIS LIST AND DOWNGRADED THE STOCK TO BUY FROM STRONG BUY LATE MONDAY AFTERNOON MARCAM SAID IT EXPECTS EARNINGS FOR ITS FISCAL FIRST QUARTER ENDED DECEMBER TO BE IN THE RANGE OF SEVEN CENTS TO 11 CENTS A SHARE ABOUT HALF OF WALL STREET'S ESTIMATES THE COMPANY BLAMED HIGHER EXPENSES FOR THIRDPARTY SALES COMMISSIONS AND TO A LESSER EXTENT EXPENSES ASSOCIATED WITH ITS PLANNED ACQUISITION OF MARKETING RIGHTS FOR INTERNATIONAL BUSINESS MACHINES CORP'S MAPICS PRODUCT LINE MAXTOR PLUNGED 2 5/8 TO 11 3/4 BEAR STEARNS & CO LOWERED ITS RATING TO HOLD FROM BUY CITING COMPUTER STORAGE INDUSTRY PRICING PRESSURES BEAR STEARNS ANALYST ANDY NEFF SAID PRICE COMPETITION FOR MAXTOR'S HARD DISK DRIVES APPEARS EVEN STIFFER THAN HE BELIEVED IN DECEMBER WHEN HE CUT HIS RATING TO BUY FROM A STRONG BUY MR NEFF LOWERED HIS EARNINGS ESTIMATE FOR THE SAN JOSE CALIF COMPANY FOR FISCAL 1993 ENDING IN MARCH TO 215 A SHARE FROM 250 MAXTOR WAS THE THIRD MOST ACTIVE ISSUE ON 46 MILLION SHARES SEAGATE TECHNOLOGY DROPPED 1 5/8 TO 19 7/8 ON AN ANALYST DOWNGRADE OF THE DISKDRIVE MAKER ON MONDAY KIDDER PEABODY & CO DOWNGRADED ITS RATING TO HOLD FROM BUY KIDDER ANALYST PAUL WEINSTEIN RECOMMENDED THAT INVESTORS TAKE PROFITS IN THE STOCK AFTER THE MARKET CLOSED SEAGATE TECHNOLOGY REPORTED EARNINGS OF 91 CENTS FOR ITS SECOND QUARTER ENDED JAN 1 UP FROM 17 CENTS A SHARE A YEAR EARLIER DESPITE YESTERDAY'S SELLOFF ANALYSTS SAID EARNINGS REPORTS FOR TECHNOLOGY COMPANIES SHOULD BE GOOD OVERALL WE'RE SEEING A LOT OF SKITTISHNESS BECAUSE WE ARE IN EARNINGS SEASON SAID MONEY MANAGER ROGER MCNAMEE OF INTEGRAL CAPITAL PARTNERS IN PALO ALTO CALIF A LOT OF THE NUMBERS WILL BE ALL OVER THE PLACE BUT FOR THE MOST PART THE BULLISHNESS IN TECHNOLOGY STOCKS IS REALLY WELLDESERVED REXON SHED 1 TO 8 AFTER THE MANHATTAN BEACH CALIF DIGITAL AUDIO TAPE AND TAPE DRIVE COMPANY ESTIMATED THAT ITS FOURTHQUARTER EARNINGS SLIPPED TO FOUR CENTS A SHARE FROM 31 CENTS A YEAR EARLIER REXON CITED LOWER PROFIT MARGINS TIED TO FALLING PRICES FOR DIGITAL AUDIO TAPE CALGENE DROPPED 1 7/8 TO 14 3/4 IT LOST 1 1/4 MONDAY FOLLOWING REPORTS THAT NEW YORK STOCK EXCHANGELISTED CAMPBELL SOUP DOESN'T HAVE IMMEDIATE PLANS TO USE A GENETICALLY ENGINEERED TOMATO DEVELOPED BY THE DAVIS CALIF COMPANY THE WALL STREET JOURNAL YESTERDAY NOTED THAT A GROWING NUMBER OF EXPERTS THINK CALGENE DOESN'T NEED TO USE BIOTECHNOLOGY TO PRODUCE THE IMPROVED TOMATO DRUG EMPORIUM LOST 5/8 TO 4 7/8 AFTER IT REPORTED A LOSS OF 17 CENTS A SHARE FOR THE THIRD QUARTER ENDED NOV 28 COMPARED WITH NET INCOME OF FIVE CENTS A YEAR EARLIER THE POWELL OHIO DISCOUNT DRUGSTORE OPERATOR SAID ITS SALES HAVE BEEN DEPRESSED PARTLY BY COMPETITION FROM GROCERY STORE CHAINS IT WILL CUT COSTS BY ELIMINATING CERTAIN MANAGEMENT POSITIONS AND FREEZING SALARIES AND HIRING BEN FRANKLIN RETAIL STORES ADDED 5/8 TO 8 1/2 THE CAROL STREAM ILL VARIETY AND CRAFT RETAILER REPORTED INCOME FROM OPERATIONS OF 10 CENTS A SHARE UP FROM SEVEN CENTS A YEAR AGO MCCLAIN INDUSTRIES GAINED 1 3/4 TO 6 3/4 AFTER THE COMPANY POSTED A FOURTHQUARTER PROFIT OF 23 CENTS A SHARE UP FROM ONE CENT A YEAR EARLIER SALES AT THE STERLING HEIGHTS MICH COMPANY GREW TO 122 MILLION FROM 66 MILLION DAVE PETTIT IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9301130150 930113 BAYER UNIT AND VIAGENE JOIN ON GENE THERAPY TO TREAT HEMOPHILIA PITTSBURGH MILES INC THE US UNIT OF BAYER AG SAID IT REACHED A THREEYEAR AGREEMENT TO COLLABORATE WITH VIAGENE INC OF SAN DIEGO ON A GENE THERAPY SYSTEM TO TREAT HEMOPHILIA A THE DEAL MAKES MILES THE FIRST MAJOR PHARMACEUTICAL CONCERN TO BACK RESEARCH FOR GENE THERAPY TREATMENT FOR HEMOPHILIA EXPERTS IN THE FIELD SAY GENE THERAPY IS BASICALLY A DELIVERY SYSTEM THAT USES DEACTIVATED RETROVIRUSES TO CARRY THERAPEUTIC GENES TO LIVING CELLS UNDER TERMS OF THE AGREEMENT MILES WILL INVEST 9 MILLION AND CONTRIBUTE A CERTAIN BLOODCLOTTING GENE FACTOR VIII LICENSED FROM GENENTECH INC OF SOUTH SAN FRANCISCO VIAGENE WILL SUPPLY A PARTICULAR TYPE OF VIRUS CALLED A RETROVIRUS THAT WOULD CARRY THE FACTOR VIII TO LIVING CELLS ENABLING PATIENTS TO PRODUCE THEIR OWN BLOODCLOTTING PROTEIN WHICH HEMOPHILIACS LACK VIAGENE WOULD HAVE THE MANUFACTURING RIGHTS AND MILES WOULD HAVE WORLDWIDE MARKETING RIGHTS MILES WOULD HAVE THE RIGHT TO BUY OUT VIAGENE'S MANUFACTURING RIGHTS THE TREATMENT IS YEARS AWAY FROM BEGINNING CLINICAL TRIALS AND IS AT LEAST A DECADE AWAY FROM MARKET SAID GEORGE SCANGOS SENIOR VICE PRESIDENT OF MILES' PHARMACEUTICAL DIVISION BUT IF THE TREATED CELLS CONTINUE TO MANUFACTURE BLOODCLOTTING PROTEIN HEMOPHILIA A PATIENTS COULD THEORETICALLY BE CURED WITH JUST ONE GENE THERAPY TREATMENT INSTEAD OF THE WEEKLY FACTOR VIII INFUSIONS THEY REQUIRE NOW EVEN IF THE TREATED CELLS CAN PRODUCE FACTOR VIII FOR ONLY A FEW WEEKS THAT WOULD DRAMATICALLY REDUCE THE NUMBER OF TREATMENTS REQUIRED THE TREATMENT COULD EVENTUALLY REPLACE A SYNTHETIC FACTOR VIII PRODUCT KOGENATE WHICH MILES HAS BEEN DEVELOPING AS AN ALTERNATIVE TO FACTOR VIII WHICH IS DERIVED FROM PLASMA MILES SAID IT HAS SPENT 250 MILLION DEVELOPING KOGENATE OVER THE PAST DECADE AND HOPES TO GET FOOD AND DRUG ADMINISTRATION APPROVAL FOR THE PRODUCT LATER THIS YEAR 9301130149 930113 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 13/16 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 313 30 TO 89 DAYS 317 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 323 30 DAYS 325 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 278 ONE MONTH 281 TWO MONTHS 285 THREE MONTHS 296 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 308 30 DAYS 309 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 784 60 DAYS 792 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 781 60 DAYS 790 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 9301130148 930113 CORRECTIONS & AMPLIFICATIONS DOUG GLENDENNING 36 YEARS OLD WAS NAMED TO THE BOARD OF LONE STAR STEAKHOUSE & SALOON INC INCREASING THE BOARD'S SIZE TO EIGHT MEMBERS BECAUSE OF INCORRECT INFORMATION SUPPLIED BY THE COMPANY YESTERDAY'S WHO'S NEWS COLUMN MISSTATED MR GLENDENNING'S AGE AND THE SIZE OF THE BOARD 9301130147 930113 CD YIELDS DECLINED IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS MOSTLY EDGED DOWNWARD IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 290 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS DROPPED TO 536 FROM 540 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLID TO 335 FROM 339 THE INFORMATION SERVICE REPORTED ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 566 FROM 577 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 296 FROM 299 BANXQUOTE SAID ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWNWARD TO 555 FROM 557 ACCORDING TO BANXQUOTE 9301130146 930113 JURY WON'T INDICT VIRGINIA SENATOR IN EAVESDROP CASE BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATIC SEN CHARLES ROBB OF VIRGINIA ROLLED THE DICE LAST MONTH APPEARING AT HIS OWN REQUEST FOR SIX HOURS BEFORE A FEDERAL GRAND JURY IN NORFOLK PLEADING WITH THEM NOT TO INDICT HIM ON EAVESDROPPING CHARGES IT WORKED IN A SURPRISE DECISION MEMBERS OF THE GRAND JURY VOTED AGAINST THE INDICTMENT APPARENTLY OVERRULING THE PROSECUTORS WHO HAD LAID OUT THE CASE FOR THEM THE DECISION WAS ANNOUNCED BY THE JUSTICE DEPARTMENT IN WASHINGTON WITHOUT EMBELLISHMENT THE GRAND JURY SPENT 18 MONTHS LOOKING INTO ALLEGATIONS THAT THE 53YEAROLD MR ROBB MAY HAVE VIOLATED WIRETAP LAWS AND OBSTRUCTED JUSTICE BY PARTICIPATING IN A PLAN TO EMBARRASS HIS POLITICAL RIVAL DOUGLAS WILDER BY LEAKING THE TRANSCRIPT OF A SECRETLY TAPED CONVERSATION BETWEEN MR WILDER AND ONE OF HIS SUPPORTERS MR WILDER NOW THE GOVERNOR OF VIRGINIA WAS THE LIEUTENANT GOVERNOR AT THE TIME HE MADE THE CALL ON HIS CAR PHONE THREE OF MR ROBB'S AIDES WERE CONVICTED ON MINOR CHARGES STEMMING FROM THE CASE THE INVESTIGATION FOLLOWED A SERIES OF NEWSPAPER AND TELEVISION REPORTS ABOUT SEN ROBB'S PERSONAL LIFE IN 19821986 WHEN HE WAS GOVERNOR CENTERING ON PARTIES IN VIRGINIA BEACH AND A CLAIM BY A FORMER BEAUTY QUEEN THAT SHE HAD AN AFFAIR WITH THE SENATOR IN THE INTERCEPTED PHONE CALL IN 1988 MR WILDER WHO IS ALSO A DEMOCRAT SAID THE STORIES ABOUT MR ROBB'S PERSONAL LIFE WOULD DESTROY MR ROBB'S POLITICAL CAREER MR ROBB WAS ELECTED TO THE SENATE IN 1988 MR ROBB A FORMER MARINE AND THE SONINLAW OF FORMER PRESIDENT LYNDON JOHNSON SAYS HE WILL SEEK REELECTION IN 1994 POLITICAL INSIDERS SAY THE GOP MAY PICK FORMER MARINE CORPS LT COL OLIVER NORTH TO RUN AGAINST HIM MR NORTH WAS CONVICTED FOR HIS ROLE IN THE IRANCONTRA AFFAIR BUT THE CONVICTION WAS OVERTURNED ON APPEAL 9301130145 930113 LETTERS TO THE EDITOR CUNNING YUGOSLAV PLAN TO GRAB PART OF GREECE YOUR NOV 19 PAGEONE ARTICLE NOUVELLE MACEDONIA PITS GREEKS SLAVS IN MONIKER MUDDLE EXCLUDED SOME IMPORTANT FACTS AND CONSEQUENTLY FAILED TO ENHANCE SATISFACTORILY THE PUBLIC UNDERSTANDING OF THE MACEDONIAN ISSUE PERFUNCTORY POLITICAL EVALUATION LED TO HASTY RECOGNITION OF BOSNIAHERZEGOVINA AND CONSEQUENTLY TO WAR IF WAR IS WHAT WE ARE TRYING TO PREVENT LET'S NOT STRIDE OVER THE FACT THAT 15 MILLION GREEKS GATHERED IN PROTEST IN ATHENS RECENTLY IF A CANADIAN PROVINCE WERE TO DECLARE ITSELF INDEPENDENT CALL ITSELF NEW YORK AND USE THE EAGLE AS AN EMBLEM ON ITS FLAG WOULDN'T WE PROTEST US SECRETARY OF STATE EDWARD R STETTINIUS JR 1944 SAID IT WAS UNJUSTIFIED DEMAGOGUERY REPRESENTING NEITHER ETHNIC NOR POLITICAL REALITY WHEN HE REFERRED TO TITO'S MOVE TO RENAME THE SOUTHERN PART OF YUGOSLAVIA PREVIOUSLY KNOWN AS VARDARSKA TO MACEDONIA GREEK FOR LONG AND TALL IT WAS AN INGENIOUS MOVE AND A CUNNING PLAN THE NECESSARY FIRST STEP TO FORMULATE A CLAIM FOR THE FAR GREATER AREA THE ANCIENT GREEK KINGDOM THAT AT PRESENT IS GREECE'S NORTHERN PROVINCE STILL CALLED MACEDONIA GREEK PEOPLE EVERYWHERE ARE ASTOUNDED BY THE TURN OF EVENTS ALL OF A SUDDEN THERE IS A YUGOSLAV PROVINCE THAT DECLARES INDEPENDENCE WANTS TO BE CALLED MACEDONIA AND WANTS THE STAR OF VERGINA SACRED GREEK EMBLEM OF THE ANCIENT ROYAL MACEDONIAN FAMILY ON ITS FLAG THIS NOT ONLY DEPRIVES GREECE OF ITS HISTORICAL INHERITANCE BUT ALSO THREATENS ITS SECURITY MAPS THAT COME OUR WAY FROM THIS REMAINING YUGOSLAV REPUBLIC INCLUDE PARTS OF GREECE WITHIN THEIR BOUNDARIES SO GREECE PROTESTS BITTERLY THE USE OF THE NAME SINCE GREECE WAS A FAITHFUL TRADITIONAL ALLY IN ALL OUR WARS ITS PEOPLE FEEL THAT THE US SHOULD SUPPORT THEM ON THIS ISSUE OUR ASSESSMENT OF AN EXPLOSIVE SITUATION IS CORRECT BUT BY LOOKING AT ALL SIDES MAYBE WE CAN HELP ENSURE THAT IT WILL NOT CAUSE WAR BY TRYING TO PREVENT IT 9301130144 930113 NEW JERSEY MEASURE FOR SPORTS BETTING DIES IN THE ASSEMBLY NEW YORK ALL BETS ARE OFF FOR NOW THAT NEW JERSEY WILL LEGALIZE SPORTS BETTING DESPITE HEAVY LOBBYING FROM THE STATE'S POWERFUL CASINO LOBBY A CONTROVERSIAL MEASURE TO APPROVE SPORTS BETTING IN ATLANTIC CITY DIED YESTERDAY ON THE LAST DAY OF THE STATE'S LEGISLATIVE SESSION ALTHOUGH BACKERS WILL TRY AGAIN IN THE NEXT SESSION UNDER MORE DIFFICULT RULES FEDERAL LEGISLATION LAST YEAR BANNED SPORTS BETTING IN MOST STATES BUT NEW JERSEY WHICH ALREADY HAS A STATE LOTTERY AND LEGALIZED GAMBLING IN ATLANTIC CITY WAS GIVEN UNTIL JANUARY 1994 TO ADOPT A CONSTITUTIONAL AMENDMENT LEGALIZING BETTING ON PROFESSIONAL AND OUTOFSTATE COLLEGE TEAMS UNDER NEW JERSEY'S REQUIREMENTS FOR PUTTING CONSTITUTIONAL AMENDMENTS ON THE BALLOT MEASURES REQUIRE SIMPLE MAJORITY VOTES IN EACH HOUSE IN TWO CONSECUTIVE YEARS OR THREEFIFTHS APPROVAL IN EACH HOUSE IN ONE LEGISLATIVE YEAR THE SPORTS GAMBLING MEASURE NARROWLY PASSED THE SENATE BUT NEVER CAME TO AN ASSEMBLY VOTE THUS THE STIFFER THREEFIFTHS VOTE WILL BE REQUIRED IN EACH HOUSE IN THE NEXT SESSION THE MEASURE HAS COME UNDER INTENSE OPPOSITION FROM BOTH PROFESSIONAL AND COLLEGIATE SPORTS ASSOCIATIONS WHO WANT TO KEEP GAMBLING INFLUENCES OUT OF SPORTS ARENAS AS WELL AS US SEN BILL BRADLEY D NJ A FORMER PROFESSIONAL BASKETBALL PLAYER HOWEVER ASSEMBLYMAN ROBERT SINGER SPONSOR OF THE BILL IN THE STATE ASSEMBLY THINKS SPORTS GAMBLING COULD GET THE NECESSARY SUPPORT IF THE CASINO LOBBY PROVES WILLING TO ELIMINATE BETTING ON COLLEGIATE SPORTS 9301130143 930113 LAB NOTES BY JERRY E BISHOP HOT TUBS MAY NOT BE AS RISKY FOR HEART PATIENTS AS MOST PEOPLE THINK MAYO CLINIC RESEARCHERS FIND IN 1981 THE US CONSUMER PRODUCT SAFETY COMMISSION LOOKED INTO 30 DEATHS THAT OCCURRED IN HOME HOT TUBS THE AGENCY URGED THAT HOT TUBS BE NO HOTTER THAN 104 DEGREES FAHRENHEIT AND THAT EVEN HEALTHY PEOPLE GET OUT AFTER 20 OR 30 MINUTES THIS PROMPTED MANY HEALTH CLUBS TO LIMIT TUB SITS FOR HEALTHY PEOPLE TO 15 MINUTES AND TO REQUIRE PATRONS WITH HEART DISEASE TO GET A DOCTOR'S PERMISSION TO USE THE SAUNA AND TUB TO SEE WHETHER THAT WAS AN OVERREACTION MAYO CLINIC HEART SPECIALISTS TESTED 15 MEN WITH PROVEN HEART DISEASE AS THEY SAT IN A 104DEGREE HOT TUB FOR 15 MINUTES AND AS THEY PEDALED A STATIONARY BICYCLE FOR 15 MINUTES DURING TUB SITS HEART RATES AND BLOOD PRESSURES ROSE BUT NOT NEARLY AS MUCH AS WHEN THE VOLUNTEERS PEDALED BICYCLES ONE MAN HAD A STAB OF CHEST PAIN WHILE SITTING IN THE TUB BUT THREE HAD SUCH PAIN DURING BICYCLE EXERCISE FOUR TUB USERS HAD BRIEF IRREGULARITIES IN HEARTBEAT BUT FIVE PATIENTS HAD THAT EXPERIENCE ON THE BICYCLE BECAUSE SOME MEN HAD MOMENTS OF LIGHTHEADEDNESS WHEN THEY STOOD UP AFTER SITTING IN THE TUB PEOPLE WITH LOW BLOOD PRESSURE SHOULD AVOID HOT TUBS THE RESEARCHERS CAUTION IN THE JANUARY ISSUE OF THE MAYO CLINIC PROCEEDINGS OTHERS WHO SHOULD STAY OUT OF THE TUBS INCLUDE PREGNANT WOMEN ANYONE WITH SEVERE HEART DISEASE AND PEOPLE WHO HAVE BEEN DRINKING ALCOHOL OTHERWISE ANYONE WITH STABLE HEART DISEASE WHO CAN EXERCISE WITHOUT PROBLEMS SHOULDN'T HAVE ANY PROBLEMS SITTING IN A 104DEGREE HOT TUB FOR 15 MINUTES THEY CONCLUDE LOST TECHNOLOGIES FOR MAKING TEXTILES FROM CORN OR SOYBEANS ARE BEING FERRETED OUT BY IOWA STATE UNIVERSITY SCIENTISTS IN THE 1930S THERE WERE SEVERAL ATTEMPTS TO MAKE SYNTHETIC FIBERS FROM REGENERATED PLANT PROTEINS THAT WOULD COMPETE WITH WOOL AND SILK ONE ADVOCATE HENRY FORD ONCE POSED IN A SUIT OF SOYBEAN FIBERS MOST EFFORTS FAILED BUT VICARA MADE FROM CORN PROTEIN WAS MARKETED IN THE US AND ARDIL MADE FROM PEANUT PROTEIN WAS SOLD IN BRITAIN THESE PROTEIN FIBERS DISAPPEARED AFTER THE END OF WORLD WAR II WHEN ABUNDANT PETROLEUM LED TO CHEAPER AND BETTER SYNTHETIC FIBERS SUCH AS NYLON AND ORLON IN AN ATTEMPT TO DEVELOP MARKETS FOR SOYBEAN AND CORN MEALS THE RESIDUES LEFT AFTER THE OILS ARE SQUEEZED OUT IOWA STATE SCIENTISTS EARL HAMMOND CHERYLL REITMEIER AND DELAND MYERS ARE TRYING TO RECREATE AND IMPROVE THE PROTEIN FIBERS THE PROJECT IS FUNDED BY THE IOWA SOYBEAN PROMOTION BOARD UNFORTUNATELY SOME OF THE TECHNOLOGIES USED IN THE 1930S WERE DEEMED TO BE TRADE SECRETS AND NEVER PUBLISHED THERE WERE PATENTS BUT SOME OF THE INFORMATION HAS BEEN LOST SAYS DR MYERS THEY KNOW THAT THE WET PROCESS USED INVOLVED DISSOLVING THE PROTEINS IN AN ALKALI SOLUTION AND THEN SQUIRTING THE SOLUTION THROUGH TINY HOLES OF A SPINNERETTE INTO AN ACID BATH WHERE THE FIBERS COAGULATED BUT DETAILS ON THE FILTERS THE PUMPS THE REELS THAT WOUND THE FIBERS FOR HARDENING AND OTHER TECHNOLOGY ARE UNKNOWN WE'VE TRIED TO FIND SOME OF THE OLDTIMERS BUT MANY ARE DEAD AND A LOT OF THE INFORMATION DIED WITH THEM DR MYERS SAYS THE SCIENCE OF THE FIBERS IS MUCH BETTER UNDERSTOOD TODAY BUT WE'RE STILL TRYING TO GET THE PROCESS UP AND RUNNING HE SAYS AN EFFORT TO PRODUCE SCARLESS HEALING OF WOUNDS AND SURGICAL INCISIONS GETS A BOOST FROM NEW RESEARCH WHEN SAN FRANCISCO SURGEONS BEGAN OPERATING TO CORRECT DEFECTS IN UNBORN FETUSES A HALFDOZEN YEARS AGO THEY FOUND THAT WHEN THE CHILD WAS BORN HE OR SHE HAD NO SURGICAL SCARS THE DISCOVERY HAS PROMPTED RESEARCH TO SEE HOW FETAL WOUND HEALING DIFFERS FROM HEALING AFTER BIRTH UNDERSTANDING THE TRICK COULD LEAD TO SCARLESS SURGERY ELIMINATE THE ADHESIONS THAT PLAGUE PATIENTS AFTER INTERNAL SURGERY AND HELP WITH SCARRING LINKED TO VARIOUS DISEASES OF THE LIVER LUNGS AND HEART A NEW TECHNIQUE ENABLES THE RESEARCHERS TO GROW FETAL MOUSE SKIN IN THE TEST TUBE THAT HEALS EXACTLY THE WAY AN INTACT MOUSE FETUS HEALS REPORTS PEDIATRIC SURGEON THOMAS M KRUMMEL OF PENNSYLVANIA STATE UNIVERSITY'S HERSHEY MEDICAL CENTER IN HERSHEY PA THE TECHNIQUE ALLOWS HIM TO STUDY FETAL WOUNDHEALING FREE OF COMPLICATING FACTORS SUCH AS BLOOD FLOW HE SAYS DR KRUMMEL SPECULATED THAT WOUNDED ADULT SKIN CALLS ON THE BODY'S SYSTEM FOR RAPID REPAIR AND THAT IT'S THIS QUICK PATCHING THAT LEADS TO SCARS FETAL SKIN ON THE OTHER HAND IS GROWING SO FAST THAT IT DOESN'T NEED THIS QUICK PATCH SYSTEM AND THUS DOESN'T SCAR IN AN EARLY EXPERIMENT NATURAL GROWTH FACTORS THAT ARE THOUGHT TO PROMOTE HEALING OF WOUNDS IN ADULTS WERE APPLIED TO THE TESTTUBE FETAL SKIN DR KRUMMEL SAYS THE GROWTH FACTORS PRODUCED SCARRING SIMILAR TO THE SCARS OF ADULT SKIN THIS SUGGESTS HE SAYS THAT FETAL SKIN MAY AVOID SCARRING BY BLOCKING THE ACTION OF THESE GROWTH FACTORS A NEWLY REPORTED LABORATORY EXPERIMENT IN ENGLAND DID PREVENT SCARRING BY NEUTRALIZING THE GROWTH FACTORS HE SAYS ORANGE POTATO CHIPS FARMERS FOR SNACK PRODUCERS ASKED FOR SAMPLES OF AN ORANGECOLORED POTATO THAT TURNED UP UNEXPECTEDLY AMONG SPUDS GROWN FROM SAMPLES BROUGHT BACK FROM THE ANDES SAY US AGRICULTURE DEPARTMENT RESEARCHERS IN PROSSER WASH THE CATGUT ARCHIVES WILL GO TO STANFORD UNIVERSITY FROM MONTCLAIR NJ IF THE CATGUT ACOUSTICAL SOCIETY CAN RAISE 25000 TO MOVE ITS COLLECTION OF SCIENTIFIC PAPERS ON THE PHYSICS OF VIOLIN ACOUSTICS A NEW HOPS VINE WITH BLUISHPURPLE LEAVES MAKES A FINE ORNAMENTAL PLANT FOR THE HOME AS WELL AS A RESOURCE FOR THE HOME BREWER SAY FEDERAL PLANT BREEDERS IN CORVALLIS ORE 9301130142 930113 JACK R GAUBERT PLEADS GUILTY TO FRAUD IN CASE OF FAILED TEXAS THRIFT DALLAS FORMER TEXAS THRIFT OFFICER JACK R GAUBERT AGREED TO PLEAD GUILTY TO A FEDERAL FRAUD CHARGE IN A MOVE THAT COULD STRENGTHEN THE GOVERNMENT'S CASE AGAINST HIS BROTHER THOMAS M GAUBERT IN DOCUMENTS FILED IN US DISTRICT COURT IN DALLAS MR GAUBERT THE FORMER CHAIRMAN OF FAILED INDEPENDENT AMERICAN SAVINGS ASSOCIATION ADMITTED HE VIOLATED THRIFT REGULATIONS WHEN HE AND OTHER OFFICERS APPROVED LOANS TOTALING 27 MILLION TO THE BUYER OF THE LAKEWOOD TOWNHOMES CONDOMINIUM COMPLEX THE LOANS EXCEEDED THE PROPERTY'S 18 MILLION APPRAISAL VALUE ACCORDING TO THE PLEA AGREEMENT MR GAUBERT FACES A MAXIMUM TWOYEAR PRISON SENTENCE AND 250000 FINE AND COULD BE REQUIRED TO MAKE RESTITUTION NEITHER MR GAUBERT NOR HIS ATTORNEY COULD BE REACHED FOR COMMENT IN COURT PAPERS MR GAUBERT ALSO AGREED TO COOPERATE WITH THE GOVERNMENT'S INVESTIGATION OF INDEPENDENT AMERICAN HIS BROTHER FORMER THRIFT COCHAIRMAN THOMAS GAUBERT AND SEVERAL FAMILY MEMBERS HAVE ALSO BEEN INDICTED ON FRAUD CHARGES RELATED TO THEIR INVOLVEMENT IN THE THRIFT THOMAS GAUBERT WHO IS FIGHTING THREE FEDERAL INDICTMENTS CHARGING HIM WITH BANK FRAUD AND RELATED COUNTS SAID HE DOESN'T THINK HIS BROTHER'S PLEA AGREEMENT WILL AFFECT THE CASES AGAINST HIM MY BROTHER CAN FEEL FREE TO TALK TO ANYONE BECAUSE I'M CONFIDENT THERE NEVER WERE ANY CRIMES COMMITTED AT INDEPENDENT AMERICAN HE SAID 9301130141 930113 BUSINESSMAN SENTENCED IN SCHEME TO DEFRAUD DIGITAL EQUIPMENT BOSTON EDWARD F DESMOND A MASSACHUSETTS BUSINESSMAN WAS SENTENCED TO 97 MONTHS IN PRISON FOR A SCHEME IN WHICH DIGITAL EQUIPMENT CORP WAS DEFRAUDED OF ABOUT 10 MILLION MR DESMOND HAS ADMITTED TO BEING PART OF A SCHEME IN WHICH COMPUTERS AND COMPUTER CIRCUIT BOARDS WERE STOLEN AND RESOLD IN CALIFORNIA THE SCHEME ALLEGEDLY INVOLVED AT LEAST 17 PEOPLE SOME OF WHOM HAVE ALREADY BEEN SENTENCED MR DESMOND WHOM THE GOVERNMENT CONSIDERED ONE OF THE RINGLEADERS PLEADED GUILTY IN AUGUST TO CHARGES OF RACKETEERING MONEY LAUNDERING INTERSTATE SHIPMENT OF STOLEN PROPERTY BANK FRAUD AND MAKING FALSE STATEMENTS TO FINANCIAL INSTITUTIONS HE ALSO RECEIVED CONCURRENT SENTENCES FOR DEFRAUDING CAPITOL BANK & TRUST CO AND BANK HAPOALIM IN THE SCHEME IN SENTENCING MR DESMOND US DISTRICT COURT JUDGE DOUGLAS P WOODLOCK CONSIDERED HIS ADMISSIONS OF BEING INVOLVED IN SEPARATE FRAUDS AGAINST DIGITAL EVEN AFTER HE HAD COME FORWARD TO COOPERATE WITH AUTHORITIES ACTIONS THAT US ATTORNEY'S OFFICE CALLED BRAZEN ROGER COX MR DESMOND'S ATTORNEY SAID HIS CLIENT WAS MENTALLY ILL AND EXPRESSED REGRET THAT HIS CONDITION WASN'T MORE CAREFULLY CONSIDERED IN SENTENCING 9301130140 930113 CELGENE PACT WITH BETZ LABS WARREN NJ CELGENE CORP SAID BETZ LABORATORIES INC WILL MARKET ITS TECHNOLOGY FOR TREATING TOXIC INDUSTRIAL WASTE EFFLUENTS UNDER THE AGREEMENT CELGENE WILL DEVELOP THE TECHNOLOGY AND BETZ WILL HAVE EXCLUSIVE RIGHTS TO ITS MARKETING SALES AND INSTALLATION CELGENE'S BIOTREATMENT SYSTEM LINKED TO THE MANUFACTURING PROCESS CONVERTS INDUSTRIAL EFFLUENTS CONTAINING TOLUENE PHENOL AND OTHER AROMATIC COMPOUNDS INTO CARBON DIOXIDE CELGENE IS A BIOTECHNOLOGY COMPANY BETZ IS A WASTEWATERTREATMENT ENGINEERING COMPANY BASED IN TREVOSE PA 9301130139 930113 ALCOA POSTS LOSS OF 80 MILLION FOR 4TH QUARTER BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ALUMINUM CO OF AMERICA HIT BY ONETIME CHARGES AND CHRONICALLY LOW ALUMINUM PRICES POSTED A FOURTHQUARTER LOSS OF 80 MILLION OR 94 CENTS A SHARE THE QUARTERLY LOSS WHICH WAS ANNOUNCED AFTER THE MARKET CLOSED INCLUDED PREVIOUSLY ANNOUNCED CHARGES OF 129 MILLION OR 151 A SHARE FOR WORKFORCE REDUCTIONS AND ASSET DISPOSALS EVEN WITHOUT THE ITEMS HOWEVER ALCOA'S PROFIT OF 49 MILLION OR 57 CENTS A SHARE FELL SHORT OF EXPECTATIONS ANALYSTS EXPECTED THE WORLD'S LARGEST ALUMINUM MAKER TO EARN 76 CENTS A SHARE BEFORE SPECIAL ITEMS SHIPMENTS SLIPPED SLIGHTLY TO 750000 METRIC TONS FROM 773000 METRIC TONS BUT MOST OF THE DAMAGE CAME FROM DEPRESSED ALUMINUM PRICES THE RESULT OF A WORLDWIDE OVERSUPPLY OF THE METAL AND PRODUCERS' REFUSAL TO TRIM OUTPUT ANALYSTS BELIEVE THE SITUATION COULD LINGER FOR A YEAR OR MORE IN A SEPARATE DEVELOPMENT THAT COULD HELP ALUMINUM PRODUCERS' PROFITS ALCOA AND OTHER PRODUCERS INCLUDING KAISER ALUMINUM CORP AND AMAX INC COULD BE FORCED TO CUT PRODUCTION IN THE PACIFIC NORTHWEST BY THE BONNEVILLE POWER ADMINISTRATION WHICH PLANS TO CURTAIL 25 OF THE POWER IT SUPPLIES TO SMELTERS IN THE AREA ALCOA SAID IT'S DECIDING WHETHER TO CUT BACK CAPACITY AT ITS ALUMINUM SMELTER IN WASHINGTON STATE AND MAY REACH A DECISION BY TOMORROW THE BPA'S MOVE DRIVEN BY DROUGHT IN THE AREA COULD LIFT PRICES AND SHRINK THE WORLDWIDE OVERSUPPLY OF ALUMINUM BY FORCING RELUCTANT PRODUCERS TO CUT BACK ALCOA GETS A SMALL PERCENTAGE OF ITS TOTAL ALUMINUM SUPPLY FROM THE WASHINGTON SMELTER BUT BECAUSE OF THE POOR MARKET CONDITIONS ALCOA AND OTHER PRODUCERS MAY DECIDE TO IDLE MORE PRODUCTION THAN REQUIRED AND KEEP IT IDLE LONGER THAN THE SIXWEEK BPA CURTAILMENT LEHMAN BROTHERS ALUMINUM ANALYST THOMAS M VAN LEEUWEN BELIEVES THE BPA'S ACTION WILL LEAD TO CUTBACKS OF ABOUT 300000 METRIC TONS OUT OF US PRODUCTION OF 41 MILLION TONS AND TOTAL WORLD PRODUCTION OF 157 MILLION TONS THE EXPECTED CUTBACK IS A NICE START HE SAID BUT DOESN'T GET US ALL THE WAY HOME TO BETTER PRICING AND INDUSTRY FUNDAMENTALS IN THE 1991 FOURTH QUARTER ALCOA HAD A LOSS OF 1914 MILLION OR 226 A SHARE ON REVENUE OF 243 BILLION THAT PERIOD INCLUDED CHARGES OF 217 MILLION ALCOA SAID ITS 1992 QUARTERLY RESULTS INCLUDED IN ADDITION TO THE 129 MILLION CHARGE 372 MILLION IN PROFITS FROM INVENTORY ADJUSTMENTS WHICH WAS PARTIALLY OFFSET BY 154 MILLION IN ADDITIONAL TAX COSTS AND A CHARGE OF 135 MILLION RELATED TO AN ACCOUNTING CHANGE ALCOA ALSO RESTATED ITS 1992 FIRST QUARTER TO INCLUDE A PREVIOUSLY ANNOUNCED NONCASH CHARGE OF 111 BILLION OR 1306 A SHARE TO REFLECT A CHANGE IN ACCOUNTING FOR RETIREE HEALTH BENEFITS INCLUDING THE CHARGE ALCOA HAD A LOSS FOR 1992 OF 114 BILLION OR 1341 A SHARE ON REVENUE OF 949 BILLION IN 1991 ALCOA HAD EARNINGS OF 627 MILLION OR 71 CENTS A SHARE ON REVENUE OF 988 BILLION 9301130138 930113 JACOR COMPLETES RESTRUCTURING CINCINNATI JACOR COMMUNICATIONS INC SAID IT COMPLETED ITS DEBT RESTRUCTURING PROGRAM AS A RESULT ZELL/CHILLMARK FUND LP OWNS 906 OF THE COMPANY'S COMMON SHARES OUTSTANDING JACOR SAID IT'S WAITING FOR A FEDERAL COMMUNICATIONS COMMISSION APPROVAL TO CONVERT ZELL/CHILLMARK'S STOCK FROM NONVOTING STOCK TO VOTING STOCK JACOR OWNS 11 RADIO STATIONS A CABLE TELEVISION SYSTEM AND OTHER PROPERTIES 9301130137 930113 BUSINESS BRIEF US SENATOR SEEKS STUDY OF LIBERTY PLAN TO BUY HSN STAKE NEW YORK LIBERTY MEDIA CORP PICKED UP A NEW OPPONENT TO ITS PLAN TO BUY AN 80 STAKE IN HOME SHOPPING NETWORK INC AS US SEN HOWARD METZENBAUM URGED THE JUSTICE DEPARTMENT TO SCRUTINIZE THE DEAL'S ANTICOMPETITIVE IMPLICATIONS SEN METZENBAUM WHO OVERSEES ANTITRUST MATTERS FOR THE SENATE JUDICIARY COMMITTEE WARNED IN A LETTER TO JUSTICE ANTITRUST OFFICIALS THAT LIBERTY MEDIA'S POWERFUL POSITION IN THE CABLE INDUSTRY COULD MAKE IT EXTREMELY DIFFICULT FOR A RIVAL TO LAUNCH A COMPETING CABLE HOME SHOPPING PROGRAM IF IT IS ALLOWED TO BUY CONTROL OF HOME SHOPPING LIBERTY DECLINED TO COMMENT ON THE LETTER LAST MONTH LIBERTY MEDIA A SPINOFF OF TELECOMMUNICATIONS INC AGREED TO PAY 160 MILLION IN STOCK AND CASH FOR A CONTROLLING INTEREST IN HOME SHOPPING THE JUSTICE DEPARTMENT IS REVIEWING THE PROPOSAL BECAUSE LIBERTY WITH PARTNER COMCAST CORP AND NEWLY NAMED CHAIRMAN BARRY DILLER ALREADY CONTROLS QVC NETWORK INC THE ONLY MAJOR RIVAL OF HOME SHOPPING A JUSTICE DEPARTMENT APPROVAL OF THE DEAL WOULD GIVE LIBERTY EFFECTIVE CONTROL OF BOTH COMPANIES PAVING THE WAY FOR A MERGER ALLOWING TCI LIBERTY AND COMCAST TO GAIN MONOPOLY CONTROL OVER THE ONLY TWO CABLE HOME SHOPPING CHANNELS WILL DIMINISH COMPETITION BETWEEN HSN AND QVC AND STIFLE FUTURE EXPANSION IN THIS POTENTIALLY LUCRATIVE MARKET THE SENATOR WARNED IN HIS LETTER TO JUSTICE OFFICIALS A DATE FOR A RULING FROM THE DEPARTMENT HASN'T BEEN SET 9301130136 930113 INTERNATIONAL MOVE SET TO BRING CORPORATE CAPITAL INTO LLOYD'S MARKET BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INSTITUTIONAL INVESTORS WILL GET THEIR FIRST CHANCE TO SHARE IN THE RISKS AND REWARDS OF THE LLOYD'S OF LONDON INSURANCE MARKET JP MORGAN & CO THE US INVESTMENT BANK AND MARSH & MCLENNAN INC A US INSURANCE BROKER ARE JOINING FORCES WITH ONE OF LLOYD'S LEADING UNDERWRITING AGENCIES MERRETT HOLDINGS PLC TO PROMOTE A NEW INVESTMENT VEHICLE IT CONSISTS OF A SPECIALIZED REINSURANCE COMPANY UNDERWRITERS CAPITAL MERRETT LTD BASED IN BERMUDA WHOSE ROLE WILL BE TO TAKE A SHARE OF BUSINESS UNDERWRITTEN AT LLOYD'S THROUGH MERRETT A TOTAL OF 700000 SHARES EACH FOR 100 ARE BEING OFFERED IN THE NEW COMPANY THE MINIMUM INVESTMENT IS 1 MILLION AND JP MORGAN CAPITAL CORP AND MARSH MCLENNAN RISK CAPITAL HOLDINGS LTD HAVE EACH PLEDGED TO TAKE STAKES OF ABOUT 10 IN THE COMPANY UP TO A MAXIMUM INVESTMENT OF 7 MILLION MERRETT WON'T HAVE ANY SHAREHOLDING IN THE NEW COMPANY BUT COMMISSIONS EARNED ON REINSURANCE BUSINESS THAT THE NEW COMPANY ACCEPTS WILL BENEFIT MERRETT'S EXISTING CLIENTS THESE ARE THE INDIVIDUALS WHOSE CAPITAL BACKS THE SYNDICATES THROUGH WHICH MERRETT UNDERWRITERS DO BUSINESS AT LLOYD'S THE ARRANGEMENT MARKS THE FIRST CONCRETE MOVE TO BRING CORPORATE CAPITAL INTO THE 305YEAROLD LLOYD'S MARKET UNDER THE MARKET'S TRADITIONAL STRUCTURE INDIVIDUAL MEMBERS KNOWN AS NAMES TRADE ON THEIR OWN ACCOUNT EXTRA CAPITAL HAS BECOME URGENTLY NECESSARY FOR LLOYD'S FOLLOWING AN EXODUS OF NAMES IN THE FACE OF RECENT HEAVY LOSSES THE NUMBER OF NAMES HAS FALLEN BY MORE THAN 10 TO AROUND 20000 IN THE PAST YEAR WHILE THE NUMBER OF SYNDICATES HAS DROPPED FROM 279 TO BELOW 235 AT THE SAME TIME THERE HAS BEEN A DROP IN THE NUMBER OF AGENCIES OPERATING AT LLOYD'S THE MOST RECENT MERGER OF TWO MEMBERS' AGENCIES THROUGH WHICH NAMES PARTICIPATE ON UNDERWRITING SYNDICATES WAS ANNOUNCED THIS WEEK TO COUNTER A THREATENED MARKET COLLAPSE LLOYD'S DECIDED LAST YEAR TO OPEN ITS DOORS TO CORPORATE INVESTORS UNTIL NOW HOWEVER NO PRACTICAL MOVE HAD BEEN DEVISED TO MAKE THIS POSSIBLE THE VENTURE IN ASSOCIATION WITH MERRETT TAKES ADVANTAGE OF A PLAN UNDER WHICH LLOYD'S SYNDICATES CAN INCREASE THEIR CAPACITY TO TAKE ON BUSINESS BY AS MUCH AS 25 THE CONDITION FOR DOING SO IS THAT SYNDICATES REINSURE A SPECIFIC PORTION OF THEIR BUSINESS ON A QUOTASHARE BASIS WITH A REINSURANCE COMPANY 9301130135 930113 WHO'S NEWS NEWS CORP NEWS CORP SYDNEY AUSTRALIA PATRICK J PURCELL WAS NAMED CHIEF EXECUTIVE OF THE NEWS AMERICA PUBLISHING UNIT OF THIS MAJOR MEDIA COMPANY MR PURCELL 45 YEARS OLD WILL CONTINUE AS PRESIDENT OF THE NEWS AMERICA/NEWSPAPERS UNIT AND AS PUBLISHER AND PRESIDENT OF ONE OF ITS TWO NEWSPAPERS THE BOSTON HERALD MR PURCELL SUCCEEDS LES HINTON 48 RECENTLY NAMED CHAIRMAN AND CHIEF EXECUTIVE OF FOX TELEVISION STATIONS INC NEW CORP'S FOX INC UNIT BASED IN LOS ANGELES MR PURCELL HAD BEEN PUBLISHER OF THE NEW YORK POST WHEN IT WAS OWNED BY NEWS CORP 9301130134 930113 US CAR MAKERS MAY JOIN TO TEAR DOWN RIVAL AUTOS DETROIT THE US BIG THREE AUTO MAKERS SAID THEY ARE CONSIDERING CONDUCTING JOINT TEARDOWNS OF COMPETITORS' VEHICLES TO STUDY THEIR TECHNOLOGY CHRYSLER CORP FORD MOTOR CO AND GENERAL MOTORS CORP IN A PILOT PROGRAM LAST FALL DISASSEMBLED A RENAULT ESPACE MINIVAN AND ALL THREE SHARED THE ESTIMATED 40000 TO 50000 COST UNTIL NOW THE US AUTO MAKERS HAVEN'T SHARED INFORMATION FROM TEARDOWNS AMONG THEMSELVES BUT THE BIG THREE JOINT CONSORTIUM WHICH HAS PAVED THE WAY FOR JOINT RESEARCH FOR AUTO TECHNOLOGY AND SAFETY HAS CREATED OPPORTUNITIES FOR OTHER NONCOMPETITIVE VENTURES THE RENAULT PILOT FOCUSED ON THE FRENCH CAR MAKER'S RIGHTHAND DRIVE TECHNOLOGY US AUTO MAKERS HOPE TO SELL MORE CARS IN MARKETS SUCH AS JAPAN WHERE RIGHTHAND CARS THRIVE FORD SAID IT MAY PERFORM THE GROUP'S NEXT JOINT TEARDOWN LATER THIS YEAR 9301130133 930113 MARKETING & MEDIA NEW CHIEF FOR EMI RECORDS NEW YORK DANIEL GLASS WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF EMI RECORDS GROUP A UNIT OF LONDON'S THORN EMI PLC HE SUCCEEDS CHARLES KOPPELMAN WHO WAS RECENTLY MADE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF EMI RECORDS GROUP NORTH AMERICA MR GLASS 36 YEARS OLD WAS COEXECUTIVE VICE PRESIDENT AND COGENERAL MANAGER OF EMI RECORDS GROUP WHICH INCLUDES THREE OF EMI'S NINE US RECORD LABELS MR KOPPELMAN IS IN CHARGE OF ALL NINE LABELS REPORTING TO MR KOPPELMAN IS TERRI SANTISI 38 WHO WAS ALSO COEXECUTIVE VICE PRESIDENT AND COGENERAL MANAGER OF EMI RECORDS GROUP SHE WILL BROADEN HER ROLE TO HELP MR KOPPELMAN MANAGE ALL NINE EMI LABELS IN NORTH AMERICA 9301130132 930113 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ACQUA GROUP INC AN OFFERING OF 11 MILLION SERIES 1 REDEEMABLE CONVERTIBLE PREFERRED SHARES ARGUS PHARMACEUTICALS INC AN OFFERING OF 25 MILLION COMMON SHARES VIA SG WARBURG SECURITIES AND KIDDER PEABODY & CO CYBERONICS INC WEBSTER TEXAS REGISTRATION FOR AN INITIAL OFFERING OF TWO MILLION COMMON SHARES VIA AN UNDERWRITING GROUP LED BY MORGAN STANLEY & CO AND KIDDER PEABODY SENSORMEDICS CORP AN INITIAL OFFERING OF 17 MILLION COMMON SHARES VIA LEHMAN BROTHERS AND VECTOR SECURITIES INTERNATIONAL INC 9301130131 930113 TECHNOLOGY GENPHARM TO USE BULL TO ENTER MARKET FOR INFANT FORMULA FEMALE OFFSPRING OF HERMAN WOULD PRODUCE PROTEIN CONTAINED IN HUMAN MILK BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO GENPHARM INTERNATIONAL INC PLANS TO USE ITS GENETICALLY ENGINEERED BULL HERMAN TO ENTER THE 4 BILLION MARKET FOR INFANT FORMULA HERMAN NOW GRAZING IN EUROPEAN PASTURES WAS BIOENGINEREED AS AN EMBRYO TO CARRY THE GENE FOR PRODUCING LACTOFERRIN ONE OF THE BENEFICIAL PROTEINS FOUND IN HUMAN MOTHER'S MILK WE'VE STARTED BREEDING HIM JONATHAN MACQUITTY TOLD A BIOTECHNOLOGY CONFERENCE HERE THROUGH ARTIFICIAL INSEMINATION THAT CAN PRODUCE AS MANY AS 10000 OFFSPRING A YEAR THE MILK FROM THE FEMALE OFFSPRING WILL INCLUDE THE HUMAN MILK PROTEIN WE'LL NEED ABOUT 2000 COWS PRODUCING 10000 LITERS OF MILK A YEAR TO LAUNCH THE INFANT FORMULA BUSINESS MR MACQUITTY SAID THE COMPANY IS AIMING FOR A 1996 DEBUT HE ACKNOWLEDGED THAT DOCTORS HAVE LONG RECOMMENDED THAT NEW MOTHERS PROVIDE THEIR BABIES WITH BREAST MILK BECAUSE OF ITS SUPERIOR NUTRITIONAL VALUE HUMAN MILK IS THE GOLD STANDARD AND FORMULA COMPANIES HAVE ADDED MORE AND MORE HUMANLIKE ELEMENTS OVER THE PAST 20 YEARS HE SAID STILL LACKING HOWEVER ARE LACTOFERRIN AND ANOTHER KEY HUMAN PROTEIN CALLED LYSOZYME WHICH CONTROL HARMFUL BACTERIA AND ENCOURAGE HELPFUL BACTERIA IN THE DIGESTIVE TRACT GENPHARM'S GOAL IS TO ADD BOTH TO THE GENETIC BLUEPRINT OF ITS DAIRY HERDS IT REMAINS TO BE SEEN HOW MOTHERS EAGER TO PROVIDE THEIR CHILDREN WITH THE BEST NUTRITION WOULD REACT TO A PRODUCT THAT ON THE ONE HAND CLOSELY RESEMBLES HUMAN MILK BUT ON THE OTHER HAND IS BIOENGINEERED HERMAN IS A SOCALLED TRANSGENIC ANIMAL SUCH ANIMALS ARE DEVELOPED THROUGH THE APPLICATION OF GENETIC ENGINEERING AND EMBRYO MANIPULATION TECHNIQUES A GENETICALLY ENGINEERED SEGMENT OF DNA CALLED A TRANSGENE IN THIS CASE THE TRANSGENE INCLUDED THE CODING FOR THE HUMAN MILK IS INJECTED INTO THE CHROMOSOMES OF THE EMBRYO DR MACQUITTY SIDESTEPPED QUESTIONS ABOUT A BACKLASH AGAINST BIOENGINEERED PRODUCTS SIMILAR TO THE ONE THAT RECENTLY BRUISED THE IMAGE OF THE CALGENE FLAVR SAVR TOMATO HE INDICATED THAT IN MATTERS OF CHOOSING A FORMULA AMERICAN WOMEN LARGELY DEFER TO THEIR DOCTORS DR MACQUITTY NOTED THAT UNLIKE MANY OTHER GENESPLICED PRODUCTS PRODUCED FROM BACTERIA AND OTHER MICROORGANISMS COW'S MILK HAS A LONG HISTORY OF SAFE USE AND THAT LEADS TO SOME FAVORABLE REGULATORY IMPLICATIONS 9301130130 930113 BRADLEY OFFERS NEW TWIST FOR THE LINEITEM VETO WASHINGTON SEN BILL BRADLEY GIVING NEW MOMENTUM TO THE DRIVE FOR A LINEITEM VETO WILL OFFER A PLAN THAT WOULD PERMIT THE PRESIDENT TO VETO INDIVIDUAL PROVISIONS FROM TAX MEASURES AS WELL AS SPENDING BILLS MR BRADLEY ONE OF THE SENATE'S LEADING TAX EXPERTS HAS OPPOSED THE LINEITEM VETO BUT THE NEW JERSEY DEMOCRAT WILL PUT A NEW TWIST ON THE IDEA TODAY AT A SCHEDULED NEWS CONFERENCE BY APPLYING IT TO SOCALLED TAX EXPENDITURES TAX BREAKS THAT COST THE GOVERNMENT MONEY AND NOT ONLY DIRECT SPENDING THE ISSUE MAY BECOME A MAJOR SOURCE OF CONTENTION BETWEEN PRESIDENTELECT CLINTON AND CONGRESS WHICH HAS RESISTED SUCH AN EXPANSION OF PRESIDENTIAL AUTHORITY FOR YEARS MR CLINTON ADVOCATED A LINEITEM VETO IN HIS CAMPAIGN AND HOUSE SPEAKER THOMAS FOLEY D WASH HAS OFFERED TO COMPROMISE ON THE MATTER BUT SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD HAS VOWED TO BLOCK A LINEITEM VETO AS AN INFRINGEMENT OF CONGRESSIONAL PREROGATIVES AND MR CLINTON WILL HAVE TO DECIDE WHETHER TO RISK A BATTLE WITH THE POWERFUL WEST VIRGINIA DEMOCRAT OVER THE ISSUE 9301130129 930113 INTERNATIONAL VOLKSWAGEN SHARES RISE AHEAD OF SPECIAL MEETING SPECIAL TO THE WALL STREET JOURNAL FRANKFURT VOLKSWAGEN AG SHARES ROSE ON EXPECTATIONS THAT THE AUTO MAKER WILL ANNOUNCE A BROAD COSTCUTTING PLAN AND PERHAPS A MANAGEMENT SHUFFLE WITH VW'S SUPERVISORY BOARD SCHEDULED TO MEET TODAY IN A SPECIAL SESSION THE COMPANY'S SHARES GAINED 640 MARKS TO 26290 MARKS 16116 YESTERDAY ON THE FRANKFURT STOCK EXCHANGE VW ANNOUNCED LAST WEEK THAT IT WOULD HOLD A SPECIAL SESSION OF THE BOARD BUT IT DIDN'T SAY WHY IT WAS CALLED IN MIDDECEMBER THE GERMAN AUTO MAKER TOLD INVESTORS TO EXPECT A DROP IN 1992 PROFIT FROM 1991'S 111 BILLION MARKS THE COMPANY ALSO WARNED THAT IT MAY BE FORCED TO CUT ITS DIVIDEND FROM THE 1991 PAYOUT OF 11 MARKS AN ORDINARY SHARE AND 12 MARKS A PREFERRED SHARE VW HAS SAID IT WILL PERIODICALLY CLOSE SOME FACTORIES DURING THE YEAR TO CONTROL OUTPUT IN THE FACE OF PLUNGING DEMAND 9301130128 930113 WHO'S NEWS CANTOR FITZGERALD LP CANTOR FITZGERALD LP NEW YORK ALFRED B POTO 42 YEARS OLD THOMAS MULROONEY 42 AND ARTHUR GILLIN 42 WERE NAMED MANAGING DIRECTORS IN THE MUNICIPAL BOND DEPARTMENT OF THIS INTERNATIONAL BROKER OF FIXED INCOME AND EQUITY SECURITIES MR POTO WILL HEAD MUNICIPAL BOND TRADING OPERATIONS AND MESSRS MULROONEY AND GILLIN WILL COHEAD THE INFORMATION EVALUATION SERVICES DEPARTMENT ALSO BRIAN MCGOLDRICK 36 WAS NAMED SENIOR VICE PRESIDENT IN THE MUNICIPAL TRADING AREA OF CANTOR FITZGERALD PARTNERS ONE OF THE COMPANY'S AFFILIATED PARTNERSHIPS ALL POSITIONS ARE NEWLY CREATED 9301130127 930113 INTERNATIONAL GUINNESS TO CUT SCOTCHOUTPUT JOBS AT UNITED DISTILLERS SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH BREWING AND DISTILLING COMPANY GUINNESS PLC ANNOUNCED A PLAN TO REORGANIZE ITS UNITED DISTILLERS UNIT'S SCOTCH WHISKY PRODUCTION OPERATIONS GUINNESS SAID THE REORGANIZATION WILL RESULT IN A 125 MILLION 195 MILLION EXCEPTIONAL CHARGE TO THE GROUP'S 1992 ACCOUNT THE PROGRAM WILL INCLUDE LAYOFFS AND EARLY RETIREMENTS PLANT CLOSINGS AND ASSET WRITEDOWNS THE COMPANY SAID ABOUT 700 OF THE 5000 JOBS AT UNITED DISTILLERS IN SCOTCH WHISKY PRODUCTION WILL BE PHASED OUT OVER A TWOYEAR PERIOD GUINNESS STOCK FELL 21 PENCE OR 43 TO 473 PENCE 735 ON THE NEWS THE COMPANY SAID THE UNITED DISTILLERS REORGANIZATION INVOLVES A 100 MILLION THREEYEAR INVESTMENT PLAN THAT WILL CONCENTRATE ITS PACKAGING OPERATIONS ON THREE SITES IN CENTRAL SCOTLAND IT WILL ALSO REALIGN MALT AND GRAIN DISTILLING OUTPUT TO BRING PRODUCTION LEVELS INTO LINE WITH FUTURE EXPECTED DEMAND GUINNESS ALSO SAID IT PLANS TO ACCELERATE ITS REORGANIZATION PROGRAM AT ITS SPANISH BREWING OPERATION CRUZCAMPO GROUP IT SAID THE PLAN INCLUDES A PROVISION FOR AN ADDITIONAL PROGRAM OF EARLY RETIREMENTS GUINNESS SAID IT WANTS TO BRING PRODUCTION LEVELS INTO LINE WITH FUTURE EXPECTED DEMAND OF ITS SCOTCH WHISKY PRODUCTS LIKEWISE THE SCALING BACK AT CRUZCAMPO REFLECTS A DECLINE IN THE SPANISH BEER MARKET 9301130126 930113 LAW FTC TAKES AIM AT TRANS UNION TRW MAIL LISTS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL LAUNCHING A NEW BATTLE OVER CONSUMER PRIVACY IN THE INFORMATION AGE THE FEDERAL TRADE COMMISSION MOVED TO STOP TWO GIANT CREDITREPORTING COMPANIES FROM USING CONFIDENTIAL FINANCIAL DATA TO CREATE TARGET LISTS FOR JUNK MAILERS THE TWO COMPANIES TRW INC AND TRANS UNION CORP RUN A LUCRATIVE SIDELINE BY DIPPING INTO THEIR CREDIT DATABASES TO MAKE MAILING LISTS OF ELITE RETAIL SHOPPERS HIGHLY AFFLUENT CONSUMERS AND OTHER REVEALING CATEGORIES UNDER PRESSURE FROM THE FTC CLEVELANDBASED TRW YESTERDAY AGREED TO STOP USING CREDIT DATA IN ITS MAILINGLIST BUSINESS BUT TRANS UNION A CLOSELY HELD CHICAGO COMPANY INSISTED THAT ITS MAILINGLIST BUSINESS IS PERFECTLY LEGAL AND SAID IT WOULD FIGHT THE FTC IN COURT IF NECESSARY THE FTC YESTERDAY ISSUED A COMPLAINT CHARGING TRANS UNION WITH VIOLATING THE FEDERAL LAW THAT REGULATES CREDIT REPORTING CREDITREPORTING COMPANIES HAVE BECOME SOME OF THE BIGGEST PLAYERS IN THE EXPLODING MAILINGLIST BUSINESS THANKS TO THEIR SPECIAL ROLE AS STOREHOUSES OF FINANCIAL DATA ON VIRTUALLY EVERY AMERICAN BANKS AND STORES REGULARLY SEND THIS DATA TO THE THREE MAIN CREDITREPORTING COMPANIES WHICH IN TURN EVALUATE NEW CANDIDATES FOR LOANS OR CREDIT CARDS THE THIRD BIG CREDITREPORTING COMPANY EQUIFAX INC ATLANTA BOWED TO MOUNTING PUBLIC PRESSURE AND GOT OUT OF THE TARGETMARKETING BUSINESS IN 1991 MAILINGLISTS FALL INTO A MURKY AREA OF THE 1971 FAIR CREDIT REPORTING ACT WRITTEN LONG BEFORE THE RISE OF ELECTRONIC DATABASES THAT SIFT AND TRANSMIT CREDIT INFORMATION AT LIGHTNING SPEED THE ACT LIMITS THE PERMISSIBLE PURPOSES OF CREDIT DATA BUT IT DIDN'T ANTICIPATE THE MAILINGLIST BOOM AND DOESN'T ADDRESS THAT MARKET CONSUMER ADVOCATES HAVE BEEN PUSHING FOR NEW LAWS TO BRING THE 1971 ACT UP TO DATE A SWEEPING REVISION OF THE ACT MADE PROGRESS IN CONGRESS LAST YEAR BUT ULTIMATELY DIED AMID HEAVY LOBBYING BY BANKS STORES AND CREDITREPORTING COMPANIES ONE PROPOSED REVISION WOULD HAVE EXPLICITLY BANNED THE SALE OF CREDIT DATA TO JUNK MAILERS MEANWHILE TRW AND TRANS UNION HAVE TAKEN A NARROW VIEW OF THE 1971 LAW INSISTING THAT IT DIDN'T PREVENT THEM FROM MINING THEIR FINANCIAL DATA FOR MAILING LISTS TRANS UNION FOR EXAMPLE ADVERTISES A LIST OF 104 MILLION CREDITCARD HOLDERS FOR 65 CENTS A NAME FOR AN EXTRA FEE TRANS UNION WILL BREAK THE LIST INTO PREMIUM BANKCARD HOLDERS UPSCALE RETAIL CARD HOLDERS AND 12 OTHER CATEGORIES TRW MAILINGLIST CATALOGUE OFFERS A HIGHLY AFFLUENT CONSUMER DATABASE OF 79 MILLION NAMES INCLUDING MORE THAN THREE MILLION WITH INCOMES OF MORE THAN 120000 WE ARE THE EXPERTS IN THE 100000PLUS MARKET THE CATALOG BOASTS OSCAR MARQUIS TRANS UNION'S GENERAL COUNSEL YESTERDAY ARGUED THAT ITS MAILING LISTS AREN'T ILLEGAL BECAUSE THEY DON'T CONSTITUTE CREDIT REPORTS AS DEFINED BY THE 1971 LAW WE DON'T COMMUNICATE ANY INFORMATION THAT HAS A BEARING ON CREDITWORTHINESS HE SAID A PART OF THE PRITZKER FAMILY'S EMPIRE TRANS UNION HAS ABOUT A ONETHIRD SHARE OF THE US CREDITREPORTING MARKET ESTIMATED AT A TOTAL OF 800 MILLION TO 1 BILLION TRW AND EQUIFAX EACH ALSO HAVE ROUGHLY ONETHIRD SHARES TRW ALSO HAS REPEATEDLY DEFENDED ITS MAILINGLIST BUSINESS AS LEGAL EVEN YESTERDAY COMPANY OFFICIALS DIDN'T CONCEDE THAT THEY HAD VIOLATED ANY LAW IN A STATEMENT THE AEROSPACE AUTOMOTIVE AND INFORMATION GIANT SAID IT HAS ALWAYS FULLY COMPLIED WITH BOTH LETTER AND SPIRIT OF THE LAW IN OPERATING ITS LIST SALE BUSINESS UNDER ITS AGREEMENT WITH THE FTC TRW'S MAILINGLIST BUSINESS CAN STILL DIP INTO CREDIT FILES FOR A WIDE RANGE OF DEMOGRAPHIC INFORMATION INCLUDING NAME PHONE NUMBER ADDRESS AGE SOCIAL SECURITY NUMBER AND MOTHER'S MAIDEN NAME THE FTC ALSO LEFT THE CREDITREPORTING INDUSTRY ONE BIG LOOPHOLE IN THE LIST BUSINESS SOLICITATIONS FOR CREDIT CARDS IN THE FTC'S READING OF THE 1971 LAW THESE ARE LEGAL BECAUSE THEY USE CREDIT DATA EXPRESSLY TO MAKE AN OFFER OF CREDIT WE'RE ANSWERING SOME VERY DIFFICULT QUESTIONS ABOUT A STATUTE THAT'S 22 YEARS OLD SAID BARRY CUTLER DIRECTOR OF THE FTC'S BUREAU OF CONSUMER PROTECTION MR CUTLER DISPUTED TRANS UNION'S ASSERTION THAT ITS LISTS DON'T SHOW WHETHER A CONSUMER IS CREDITWORTHY EVEN A SIMPLE LIST OF CREDITCARD HOLDERS OFFERS A CLUE HOWEVER WEAK THAT PEOPLE ON THE LIST HAVE PASSED A MINIMAL TEST AS A CREDIT RISK MR CUTLER ADDED WHEN YOU'RE AUTHORIZED TO KEEP THE MOST SENSITIVE FINANCIAL AND PERSONAL DATA ON 100 MILLION OR 200 MILLION AMERICANS WE'RE GOING TO CONSTRUE THE FCRA AS PUTTING SUBSTANTIAL LIMITS IN TERMS OF PROTECTING PEOPLE'S PRIVACY MR CUTLER SAID THE FTC'S COMPLAINT AGAINST TRANS UNION WILL GO BEFORE AN ADMINISTRATIVE LAW JUDGE WHOSE DECISION CAN BE APPEALED TO A FEDERAL COURT TRANS UNION WOULDN'T DISCUSS THE AMOUNT OF ITS REVENUE AND PROFIT FROM ITS MAILING LISTS TRW SAID THE MAILING LISTS IT AGREED TO STOP SELLING DON'T MAKE UP A SIGNIFICANT PORTION OF ITS LISTBUSINESS REVENUE A TRW SPOKESMAN ALSO SAID ITS LIST MARKETERS MAY COME UP WITH OTHER SOURCES OF FINANCIAL DETAILS ABOUT CONSUMERS THAT DON'T VIOLATE THE NEW FTC AGREEMENT CONSUMER ADVOCATES HAILED THE FTC'S ACTION CALLING IT AN IMPORTANT MOVE AGAINST A PRIVACY VIOLATION ABOUT WHICH MOST AMERICANS AREN'T AWARE YOU DON'T GET OFFERS THAT SAY HEY WE LOOKED THROUGH YOUR CREDIT REPORT AND DECIDED THAT YOU'RE THE KIND OF GUY THAT OUGHT TO BUY OUR MAGAZINE' SAID EDMUND MIERZWINSKI A LOBBYIST WITH THE US PUBLIC INTEREST RESEARCH GROUP 9301130125 930113 TECHNOLOGY AT&T SETS ALLIANCE TO MAKE GEAR TO PROVIDE MULTIMEDIA SERVICES BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO JOINED WITH TWO NETWORK EQUIPMENT COMPANIES TO PERFECT GEAR THAT WILL BRING MULTIMEDIA SERVICES TO HOMES AND BUSINESSES AT&T CISCO SYSTEMS INC AND STRATACOM INC SAID THEY WILL COLLABORATE ON A HIGHCAPACITY SWITCHING TECHNOLOGY CALLED ASYNCHRONOUS TRANSFER MODE OR ATM SEPARATELY AT&T SAID IT WILL TAKE A 1992 FOURTHQUARTER CHARGE OF THREE CENTS A SHARE BECAUSE OF THE DECLINING VALUE OF ITS INVESTMENT IN THE PARENT OF ITALIAN COMPUTER MAKER OLIVETTI AT&T AND OTHER LARGE CARRIERS WANT TO INSTALL ATM SWITCHES SO THAT THEY HAVE THE ENORMOUS CAPACITY NECESSARY TO TRANSMIT THE BILLIONS OF BITS OF INFORMATION THAT COMPRISE MULTIMEDIA SUCH AS VOICE DATA VIDEO AND CDQUALITY AUDIO WHILE SOME SUCH SERVICES ARE CURRENTLY AVAILABLE ON EXPENSIVE CORPORATE NETWORKS NONE ARE AVAILABLE TODAY AS REGULAR SERVICES TO RESIDENTIAL AND MOST BUSINESS PHONE CUSTOMERS ATM IS SET TO BECOME THE NEXT BIG BATTLEGROUND AMONG THE GIANT TELECOMMUNICATIONS EQUIPMENT MANUFACTURERS IN THE US JAPAN AND EUROPE FUJITSU LTD ALREADY HAS SOLD BIG ATM SWITCHES TO SEVERAL US CARRIERS INCLUDING NYNEX CORP AND MCI COMMUNICATIONS CORP DEALING A MAJOR COMPETITIVE BLOW TO US LEADERS AT&T NETWORK SYSTEMS AND NORTHERN TELECOM LTD YESTERDAY AT&T'S NETWORK SYSTEMS UNIT UNVEILED A HIGHCAPACITY ATM DATA SWITCH CALLED THE GCNS 2000 THAT CAN HANDLE TRAFFIC MOVING AT 20 BILLION BITS PER SECOND AT&T ALSO PLANS TO USE THE EQUIPMENT TO PROVIDE ATM TRANSMISSION SERVICES ON A LIMITED BASIS THROUGH ITS LONGDISTANCE NETWORK BEFORE THE END OF THE YEAR SAID JAYNE FITZGERALD PRODUCT LINE MANAGER AT AT&T'S LONGDISTANCE UNIT STRATACOM MAKES A SMALLER ATM MACHINE THAT HANDLES TRAFFIC MOVING AT HALF THAT SPEED 96 GIGABITS CISCO BUILDS ROUTERS WHICH ARE COMPUTERS THAT TIE LOCALAREA NETWORK TRAFFIC TO THE PUBLIC NETWORK THE THREE COMPANIES SAID THEY WILL WORK TO STANDARDIZE THEIR EQUIPMENT SO CARRIERS AND CORPORATE CUSTOMERS CAN TIE TOGETHER THEIR DISPARATE PUBLIC AND PRIVATE NETWORKS THE ATM GEAR WILL HAVE TO WORK WITH SOCALLED FRAMERELAY HIGHSPEED DATA SERVICES THAT ARE CURRENTLY USED BY CORPORATIONS TO CONNECT HIGHSPEED OFFICE DATA TRAFFIC OVER LONG DISTANCES AT&T ALSO SAID IT WOULD REVALUE ITS STAKE IN THE ITALIAN HOLDING COMPANY CIE INDUSTRIALI RIUNITE SPA OR CIR WHICH OWNS ING C OLIVETTI & CO TO ITS YEAREND 1992 MARKET VALUE OF 63 MILLION AT&T VALUED THE INVESTMENT AT 131 MILLION AT THE END OF 1991 THE CHARGE WHICH AT&T SAID WOULDN'T AFFECT ITS EARNINGS FROM OPERATIONS AND CASH FLOW MARKS THE SECOND TIME IN A YEAR THAT AT&T HAS REVALUED ITS STAKE IN CIR WHICH IS CONTROLLED BY FINANCIER CARLO DE BENEDETTI WHO IS ALSO OLIVETTI'S CHAIRMAN AT&T PAID 260 MILLION FOR A STAKE IN OLIVETTI IN 1983 AND SWAPPED THAT IN 1989 FOR A PORTION OF CIR WHICH AT&T THEN VALUED AT 492 MILLION IN 1990 AT&T SOLD A CHUNK OF ITS CIR INVESTMENT FOR 175 MILLION AND AGREED TO HOLD THE REMAINDER UNTIL 1994 IN THE YEARAGO FOURTH QUARTER AT&T REPORTED NET INCOME OF 635 MILLION OR 48 CENTS A SHARE ON REVENUE OF 1646 BILLION ONE ANALYST KENNETH LEON OF BEAR STEARNS & CO HAD ESTIMATED AT&T WOULD EARN 74 CENTS A SHARE IN THE 1992 FOURTH QUARTER THE AT&T CHARGE WILL CUT THAT ESTIMATE TO 71 CENTS A SHARE 9301130124 930113 GM'S OVERHAUL OF CORPORATE CULTURE BRINGS RESULTS BUT STILL FACES HURDLES BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE EXECUTIVE DINING ROOM ON THE 14TH FLOOR OF GENERAL MOTORS CORP'S HEADQUARTERS WAS A SYMBOL OF CORPORATE PRIVILEGE THAT SURVIVED WAR RECESSION AND THE TAUNTS OF ROSS PEROT BUT ON JAN 1 IT WAS CLOSED BY ORDER OF GM PRESIDENT JOHN F SMITH JR BEFORE THE BIG SHOOTERS WENT TO THE 14TH FLOOR AND THE LITTLE PEOPLE WENT SOMEWHERE ELSE SAYS GM EXECUTIVE VICE PRESIDENT WILLIAM E HOGLUND WHO CHAMPIONED SUCH DEMOCRATIZING CHANGES INSIDE THE AUTO MAKER BEFORE THEY WERE FASHIONABLE THIS IS A TINY STEP TOWARD A COMPANY THAT MOVES AND IS RESPONSIVE SHUTTING DOWN THE DINING ROOM WHICH MR PEROT URGED BEFORE HE BROKE WITH GM SIX YEARS AGO IS INDEED A SMALL ITEM ON MR SMITH'S COSTCUTTING AGENDA BUT IT LOOMS LARGE AS AN EXAMPLE OF THE NEW GM THAT MESSRS SMITH HOGLUND AND OTHER NEW COMPANY LEADERS ARE TRYING TO CREATE FROM THE RUBBLE OF THE OLD GM THEIR EFFORT COMBINES OTHER SYMBOLIC ACTIONS SUCH AS DISPENSING WITH NECKTIES ON FRIDAYS WITH REAL BUSINESS CHANGES INSTEAD OF GEARING UP FACTORY PRODUCTION TO MEET UNREALISTIC SALES FORECASTS AND THEN SUDDENLY THROTTLING BACK AT GREAT COST THE COMPANY IS RUNNING ITS PLANTS ON SMOOTHER SCHEDULES GM IS ALSO BACKING AWAY FROM UNPROFITABLE SALES TO RENTALCAR FLEETS EVEN THOUGH THE MOVE IS HURTING MARKET SHARE AND THE MYRIAD COMMITTEES THAT USED TO GUIDE THE COMPANY ARE TAKING A BACK SEAT TO A SINGLE NORTH AMERICAN STRATEGY BOARD IT'S A GOOD START ANALYSTS SAY BUT IT'S ALSO A DAUNTING TASK GM IS WOEFULLY UNCOMPETITIVE IN SUCH KEY MARKET SEGMENTS AS MIDSIZE SEDANS MINIVANS AND SPORTUTILITY VEHICLES AND REPLACEMENT VEHICLES REMAIN SEVERAL YEARS AWAY EVEN MR HOGLUND IN AN UPBEAT ADDRESS MONDAY TO AN INDUSTRY CONFERENCE SPONSORED BY THE TRADE PUBLICATION AUTOMOTIVE NEWS CONCEDED THAT FIXING GM WILL TAKE TIME WE'LL HAVE TURNED AROUND BY 1996 HE SAYS WE'LL BE LESS ARROGANT WE WILL RESPECT THE CUSTOMER WE'LL LOVE OUR PEOPLE AND WE'LL HAVE GOOD QUALITY GM'S STOCK REBOUNDED THIS WEEK AFTER SENIOR EXECUTIVES INCLUDING MR HOGLUND SAID THE COMPANY'S NORTH AMERICAN OPERATIONS ARE ON TRACK TO BREAK EVEN THIS YEAR BEFORE INTEREST AND TAXES BUT THE COMPANY'S SHARES WHICH WERE UNCHANGED AT 3425 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ARE STILL WELL BELOW THE 39 A SHARE THEY FETCHED WHEN GM SOLD 215 BILLION IN NEW COMMON STOCK TO BOLSTER ITS BALANCE SHEET LAST SUMMER ANALYSTS BELIEVE THAT GM'S DIRECTORS AND MR SMITH WOULD LIKE TO FOLLOW CHRYSLER CORP'S LEAD AND ISSUE MORE SHARES TO PAY DOWN DEBT REDUCE A BALLOONING PENSION LIABILTY AND DEVELOP NEW PRODUCTS BUT FIRST THEY'LL HAVE TO PROVE THAT THEIR CULTURAL REVOLUTION HAS DRIVEN A SPIKE THROUGH THE OLD GM AND PRODUCED SUSTAINABLE PROFITS AT THE SAME TIME MR SMITH SO FAR HAS DECLINED REQUESTS FOR INTERVIEWS BUT IN A DEC 22 MESSAGE TO EMPLOYEES HE SAID WE HAVE REACHED OUR MAJOR OBJECTIVE OF MEETING OR EXCEEDING OUR VERY AGGRESSIVE 1992 BUDGET COMMITMENTS AND WE HAVE AN ACHIEVABLE PLAN TO RETURN NORTH AMERICAN OPERATIONS TO PROFITABILITY IN 1993 IT'S TIME TO SHAKE OFF THE DOUBTS TO DO THAT MR SMITH IS ATTACKING GM'S ILLS WITH ACTIONS BOTH GREAT AND SMALL ENGINEERS NO LONGER HAVE TO GET APPROVAL FROM HIGHERUPS FOR EVERY EXPENDITURE THE CADRE OF HEADQUARTERS STAFFERS WHO ONCE CHECKED EVERY MOVE AT THE OPERATING DIVISIONS THE CHECKERS WHO CHECK THE CHECKERS IN ONE GM EXECUTIVE'S PHRASE HAS BEEN CUT TO 2000 PEOPLE FROM 13000 LESS THAN TWO YEARS AGO GM PURCHASING AGENTS NO LONGER MAY ACCEPT FREE LUNCHES FROM PARTS SUPPLIERS INSTEAD THEY'RE NEGOTIATING SHARP PRICE CUTS AND DEFENDING THEIR DEALS BEFORE A ROOMFUL OF EXECUTIVES WHO SIGNAL APPROVAL ON THE SPOT BY RAPPING THEIR KNUCKLES ON THE TABLE STRATEGICALLY GM PLANNERS ARE CONSIDERING IDEAS THAT WOULD HAVE BEEN DISMISSED AS HERESY NOT LONG AGO AMONG THEM CONVERTING A FACTORY TO BUILD TRUCKS FOR TOYOTA MOTOR CORP AND BUILDING A VERSION OF A FORTHCOMING SMALL PICKUP TRUCK IN THE US FOR SALE BY ISUZU MOTORS LTD GM'S STRUGGLING JAPANESE AFFILIATE GM'S MARKETING EXECUTIVES MEANWHILE ARE LEARNING HOW TO SELL CARS ONE AT A TIME INSTEAD OF IN THOUSANDVEHICLE LOTS TO RENTAL CAR FLEETS AT CHEVROLET GENERAL MANAGER JC PERKINS LIKENS GIVING UP FLEET SALES TO KICKING CIGARETTES COMPANY EXECUTIVES SAY SALES TO INDIVIDUAL CONSUMERS ARE UP 3 SINCE OCT 1 BUT OVERALL CUTTING SALES TO FLEETS BY SOME 250000 VEHICLES HAS HELPED TO DEPRESS GM'S SHARE OF THE CAR MARKET TO LEVELS NOT SEEN SINCE BEFORE THE GREAT DEPRESSION SOME ANALYSTS BELIEVE GM'S SHARE OF THE CAR MARKET JUST 308 IN DECEMBER COULD FALL EVEN LOWER IN THE NEXT TWO YEARS UNTIL NEW MODELS ARRIVE THE COMPANY'S TRUCKS MEANWHILE RISK LOSING MORE GROUND TO STRONGER ENTRIES FROM FORD MOTOR CO AND CHRYSLER MR SMITH TOLD ANALYSTS IN NOVEMBER THAT CHANGING GM'S TRADITIONAL CULTURE IS HIS GREATEST CHALLENGE BUT CALLS FOR SUCH CHANGE AREN'T NEW DURING THE 1980S THENGM CHAIRMAN ROGER B SMITH RAILED AGAINST FROZEN MIDDLE MANAGEMENT AND LAUNCHED A MASSIVE REORGANIZATION OF THE COMPANY THAT CHAOTIC RESTRUCTURING IS NOW BLAMED FOR MANY OF THE PRODUCT AND QUALITY PROBLEMS THAT BEDEVILED GM DURING THE LATE 1980S MR SMITH'S SUCCESSOR ROBERT C STEMPEL COULDN'T STOP 65 BILLION IN LOSSES DURING 1990 AND 1991 THAT STIRRED A GROUP OF GM OFFICIALS WHO'D BEEN NOTABLY ABSENT FROM PAST REFORM CRUSADES THE COMPANY'S BOARD ON NOV 2 GM'S DIRECTORS ACCEPTED THE RESIGNATIONS OF MR STEMPEL AND THREE MEMBERS OF HIS MANAGEMENT TEAM AND INSTALLED MESSRS SMITH AND HOGLUND AND A CREW OF YOUNG TURKS AT THE HELM THE BOARD'S ACTIVISM HASN'T STOPPED WITH THE EXECUTIVE SUITE PURGE LATER THIS MONTH GM'S TOP NORTH AMERICAN EXECUTIVES WILL TRAVEL TO PHOENIX TO GIVE DIRECTORS A DETAILED PRESENTATION ON THE PROGRESS TOWARD PROFITABILITY NOW WHEN EXECUTIVES TALK ABOUT THEIR OPERATIONS THEY OFTEN MENTION THE BOARD RICHARD G LEFAUVE HEAD OF GM'S SATURN SUBSIDIARY DID IT LAST WEEK WHEN HE DECLARED THAT HIS UNIT WOULD BREAK EVEN THIS YEAR AND MEET OUR COMMITMENTS TO THE BOARD FEAR WHETHER OF THE BOARD OR MR SMITH'S AX CLEARLY HAS SHAKEN GM'S FROZEN MIDDLE MANAGERS AS NEVER BEFORE THE COMPANY SHED SOME 12000 SALARIED JOBS IN 1992 AND WILL ELIMINATE ANOTHER 10000 POSITIONS THIS YEAR THROUGH EARLY RETIREMENTS ATTRITION AND IF NEED BE DISMISSALS GM OFFICIALS ESTIMATE THAT 5000 TO 10000 HOURLY WORKERS TOOK EARLY RETIREMENT OFFERS THAT ENDED JAN 8 SINCE JANUARY 1992 GM HAS ANNOUNCED PLANS TO SELL OR CLOSE TWO DOZEN NORTH AMERICAN OPERATIONS EMPLOYING 60000 PEOPLE THE COMPANY SAID IN 1991 IT PLANNED TO SHED 74000 EMPLOYEES BY 1995 THAT FIGURE NOW LOOKS CONSERVATIVE A KEY TO NEW GM'S STRATEGY IS FOUND IN A TERM THAT'S POPPED UP AMONG GM ENGINEERS COMPONENT SETS THE IDEA IS TO DESIGN SETS OF COMMON PARTS FROM WIRING SYSTEMS TO STEERING WHEELS THAT CAN BE USED ON A VARIETY OF CARS FEWER PARTS SHOULD MEAN LOWER COSTS EVEN SATURN WHICH ONCE WORKED IN ISOLATION FROM THE REST OF GM NOW IS WORKING TO SHARE PARTS SATURN MEANWHILE IS ALSO SHARING ITS MARKETING SECRETS WITH OTHER GM DIVISIONS THE UNIT RECENTLY RAN SCORES OF OLDSMOBILE EXECUTIVES THROUGH ITS OUTDOOR OBSTACLE COURSE AT SPRING HILL TENN AND DELIVERED CRAM COURSES ON SATURN'S CUSTOMERFRIENDLY CULTURE REPUDIATING THE PAST COMES HARD HOWEVER MR HOGLUND WAS ASKED AFTER HIS SPEECH WHETHER GM'S NEW LEADERS WERE WASHING THEIR HANDS OF THE LEGACY OF ROGER SMITH WHO STILL SITS ON THE BOARD IT'S NOT A REPUDIATION OF OUR PREDECESSORS MR HOGLUND SAID WE LEARNED FROM WHAT THEY DID AND WE'RE DRIVING IN A DIFFERENT DIRECTION 9301130123 930113 INTERNATIONAL CHINA IS CLEARED TO ISSUE SOME HONG KONG CURRENCY HONG KONG BANK OF CHINA WILL BECOME THIS BRITISH COLONY'S THIRD CURRENCYISSUING BANK REFLECTING BEIJING'S GROWING FINANCIAL MUSCLE HERE AND ITS SCHEDULED TAKEOVER OF HONG KONG IN 1997 HONG KONG SAID THE STATEOWNED CHINESE BANK WON GOVERNMENT APPROVAL TO BEGIN ISSUING BANK NOTES IN MAY 1994 HONG KONG'S EXISTING NOTE ISSUERS ARE HONGKONG & SHANGHAI BANKING CORP THE MAIN SUBSIDIARY OF HSBC HOLDINGS PLC AND STANDARD CHARTERED BANK A UNIT OF STANDARD CHARTERED PLC HONGKONG BANK ISSUES ABOUT 85 OF ALL NOTES BANK OF CHINA WILL INITIALLY ISSUE SIX BILLION HONG KONG DOLLARS US775 MILLION OR 10 OF THE VALUE OF BILLS IN CIRCULATION ITS SHARE EVENTUALLY WILL INCREASE TO 20 THOUGH CENTRAL BANKS ISSUE CURRENCY IN MOST COUNTRIES COMMERCIAL BANKS HAVE LONG HELD THAT ROLE IN HONG KONG BUT AS 1997 DRAWS NEAR BEIJING CLEARLY DOESN'T WANT NOTEISSUING TO BE LEFT SOLELY TO LONDONBASED BRITISH BANKS HSBC HOLDINGS IS MOVING ITS HEADQUARTERS TO LONDON THOUGH IT HAS PLEDGED ITS COMMITMENT TO HONG KONG BANK OF CHINA SAID THE DESIGN OF ITS NOTES WILL REFLECT CAPITALIST HONG KONG APPARENTLY TO ALLAY CONCERNS THAT THE NOTES WOULD RESEMBLE CHINESE BILLS WHICH BEAR PROLETARIAN IMAGES INDEED THE COLONY'S CURRENCY IS ALREADY BEING CHANGED NEW COINS ISSUED BY THE TWO CURRENT NOTEISSUING BANKS NO LONGER CARRY THE PROFILE OF THE BRITISH QUEEN IN ITS PLACE IS THE BAUHINIA HONG KONG'S OFFICIAL FLOWER 9301130121 930113 WHO'S NEWS CHECKERS DRIVEIN RESTAURANTS INC CHECKERS DRIVEIN RESTAURANTS INC CLEARWATER FLA JAMES F WHITE JR WAS NAMED TO THE NEW POSITION OF CHIEF OPERATING OFFICER OF THE FAST FOOD CHAIN MR WHITE 53 YEARS OLD FORMERLY WAS A PARTNER IN THE LAW FIRM OF SHUMAKER LOOP & KENDRICK IN TOLEDO OHIO ALSO N JOHN SIMMONS JR WAS NAMED TO THE POST OF VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER MR SIMMONS FORMERLY A PARTNER WITH ACCOUNTING FIRM KPMG PEAT MARWICK IN ST PETERSBURG FLA SUCCEEDS PAUL C CAMPBELL WHO WILL BECOME VICE PRESIDENT OF FINANCIAL PLANNING 9301130120 930113 BOEING GETS 275 MILLION ORDER SEATTLE BOEING CO SAID IT RECEIVED AN ORDER FROM BRITANNIA AIRWAYS FOR FIVE 757 JETS VALUED AT ABOUT 275 MILLION THE PLANES ARE INTENDED TO REPLACE BRITANNIA'S SMALLER 737 JETS AND WILL BE USED ON ROUTES BETWEEN BRITAIN AND DESTINATIONS AROUND THE MEDITERRANEAN SEA AND IN THE US BOEING SAID THE AIRCRAFT MAKER SAID THE JETS WOULD BE CONFIGURED FOR 235 PASSENGERS BRITANNIA IS A PRIVATELY OWNED CHARTER AIRLINE BASED IN THE UNITED KINGDOM SEPARATELY LONDONBASED ROLLSROYCE PLC SAID IT RECEIVED A 262 MILLION ORDER FROM BRITANNIA FOR JET ENGINES TO BE USED IN THE FIVE NEWLY PURCHASED BOEING 757S AND IN OTHER LEASED AIRCRAFT 9301130119 930113 FINANCING BUSINESS NEW LINE CINEMA CORP NEW LINE CINEMA CORP NEW YORK SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF TWO MILLION COMMON SHARES AT CURRENT SHARE PRICES NEW LINE CAN EXPECT TO RAISE ABOUT 26 MILLION FROM THE OFFERING PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING THE FINANCING OF 20 TO 25 FILM PROJECTS IN 1993 A SPOKESMAN SAID INITIALLY ALL OF THE NET PROCEEDS WILL GO TOWARD REDUCING ABOUT 50 MILLION IN DEBT UNDER NEW LINE'S CREDIT FACILITY 9301130118 930113 INTERNATIONAL LVMH PROFIT IS DOWN PARIS LVMH MOET HENNESSY LOUIS VUITTON SA A FRENCH LUXURY PRODUCTS CONCERN SAID ITS 1992 GROUP PROFIT FELL TO ROUGHLY THREE BILLION FRANCS 541 MILLION FROM 374 BILLION FRANCS THE PREVIOUS YEAR DUE IN PART TO RESTRUCTURING COSTS AT GUINNESS PLC OF WHICH LVMH OWNS 24 THE GROUP'S CONSOLIDATED REVENUE FOR 1992 WAS ESTIMATED TO BE LITTLE CHANGED FROM THE 217 BILLION FRANCS IN 1991 THE ANNOUNCEMENT FOLLOWED A SUSPENSION OF TRADING IN THE SHARES OF LVMH AND AFFILIATED COMPANIES ON THE PARIS BOURSE EXCLUDING THE IMPACT FROM THE GUINNESS STAKE LVMH SAID ITS EARNINGS WOULD HAVE BEEN DOWN SLIGHTLY FROM 1991 AS BETTER RESULTS IN LUGGAGE AND PERFUMES FAILED TO OFFSET A SLUMP IN WINE AND SPIRITS 9301130117 930113 MARKETING & MEDIA PARAMOUNT NET INCREASED 22 IN FISCAL 4TH PERIOD BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC'S FISCAL FOURTHQUARTER NET INCOME INCREASED 22 REFLECTING IMPROVED RESULTS AT ITS MOTION PICTURE UNIT AND VARIOUS PUBLISHING OPERATIONS THE ENTERTAINMENT AND PUBLISHING GIANT WOULD HAVE POSTED A 32 GAIN WERE IT NOT FOR A ONETIME CHARGE OF 88 MILLION BUT PARAMOUNT INDICATED THAT RESULTS IN THE FIRST HALF OF THE CURRENT FISCAL YEAR WILL BE BELOW THE YEAREARLIER PERFORMANCE CITING EXCEPTIONAL MOTION PICTURE RESULTS IN THE FIRST HALF OF FISCAL 1992 THE COMPANY SAID COMPARISONS WILL BE UNFAVORABLE PARAMOUNT SUGGESTED RESULTS WOULD RECOVER IN THE SECOND HALF CITING AN EXTRAORDINARILY STRONG STREAM OF FILMS THAT WILL CONTINUE INTO FISCAL 1994 FOR THE FOURTH QUARTER ENDED OCT 31 NET INCOME ROSE TO 1014 MILLION OR 85 CENTS A SHARE FROM 833 MILLION OR 70 CENTS A SHARE A YEAR EARLIER BEFORE THE 88 MILLION CHARGE WHICH WAS FOR THE REDEMPTION OF 175 MILLION OF CERTAIN DEBENTURES PERSHARE EARNINGS TOTALED 93 CENTS REVENUE ROSE 26 TO 120 BILLION FROM 117 BILLION THE EARNINGS WHICH WERE GENERALLY IN LINE WITH SECURITIES ANALYSTS' EXPECTATIONS DREW A MUTED REACTION FROM INVESTORS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PARAMOUNT'S STOCK CLOSED AT 42875 A SHARE DOWN 125 CENTS FOR THE FISCAL YEAR NET INCOME MORE THAN DOUBLED TO 2614 MILLION OR 219 A SHARE FROM 1222 MILLION OR 103 A SHARE REVENUE INCREASED 92 TO 426 BILLION FROM 39 BILLION THE YEAREARLIER RESULTS INCLUDED A CHARGE OF 354 MILLION MOSTLY FOR WRITEDOWNS OF MOTION PICTURES TELEVISION DEVELOPMENT COMMITMENTS AND A REORGANIZATION OF ENTERTAINMENT BUSINESSES INCLUDING THE SETTLEMENT OF AN EMPLOYMENT CONTRACT WITH FORMER PARAMOUNT PICTURES CHAIRMAN FRANK MANCUSO PARAMOUNT CITED RECORD RESULTS FOR ITS PUBLISHING OPERATIONS AND A SUBSTANTIAL CONTRIBUTION BY ENTERTAINMENT OPERATIONS FOR THE FULLYEAR RESULTS ENTERTAINMENT RESULTS WERE BUOYED BY THE SUCCESS OF SUCH MOVIES AS WAYNE'S WORLD AND THE ADDAMS FAMILY WHILE PUBLISHING BENEFITED FROM STRONG RESULTS IN ITS CONSUMER PROFESSIONAL AND EDUCATIONAL OPERATIONS SEPARATELY PARAMOUNT SAID ITS FIRSTRUN SYNDICATED TELEVISION SHOW THE UNTOUCHABLES DREW AN AVERAGE OF 11 OF TV HOUSEHOLDS IN USE IN EIGHT MARKETS WHERE IT DEBUTED MONDAY NIGHT 9301130116 930113 ECONOMY BENTSEN STRESSES THE IMPORTANCE OF DEFICIT CUTS SENATE FINANCE COMMITTEE VOTES FOR ITS CHAIRMAN TO TAKE TREASURY POST BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENTELECT CLINTON'S CHOICE FOR TREASURY SECRETARY SEN LLOYD BENTSEN EMPHASIZED THE OVERRIDING IMPORTANCE OF REDUCING THE DEFICIT IN A CONFIRMATION HEARING MARKED BY LAVISH PRAISE FROM SENATORS FOR ONE OF THEIR OWN IN AN EXTRAORDINARY DISPLAY OF ADULATION THE SENATE FINANCE COMMITTEE VOTING BEFORE ASKING A SINGLE QUESTION UNANIMOUSLY RECOMMENDED THAT THE SENATE APPROVE MR BENTSEN'S NOMINATION THE VOTE WAS FOLLOWED BY A STANDING OVATION THAT LASTED SEVERAL MINUTES THE TEXAS DEMOCRAT HAS BEEN A MEMBER OF THE COMMITTEE FOR 21 YEARS AND ITS CHAIRMAN FOR THE PAST SIX ANSWERING QUESTIONS MR BENTSEN REPEATEDLY PUT DEFICITREDUCTION AHEAD OF ALMOST EVERYTHING ELSE INCLUDING A TAX CUT FOR THE MIDDLE CLASS THAT MR CLINTON PROMISED AND MR BENTSEN HAS SUPPORTED THERE'S NO QUESTION BUT WHAT THIS PRESIDENTELECT HAS A STRONG COMMITMENT TO CUT THAT DEFICIT AND DO IT IN A MAJOR WAY HE SAID JUST AS MR CLINTON AND OTHER ECONOMIC ADVISERS HAVE MR BENTSEN POINTED TO SUBSTANTIAL REVISIONS IN DEFICIT FORECASTS AS A REASON THAT THE PRESIDENTELECT MAY NOT KEEP HIS PLEDGE TO CUT TAXES FOR THE MIDDLE CLASS MR BENTSEN'S STANCE ON THE DEFICIT MET WITH APPROVAL FROM THE SENATORS SEN BILL BRADLEY D NJ CALLING FOR A HIGHER GASOLINE TAX OR AN ENERGY TAX OR A NEW CONSUMPTION TAX URGED THE INCOMING ADMINISTRATION TO PUT ON EACH OF OUR DESKS WHAT I WOULD LIKE TO SEE CONSIDERED AS THE VOTE OF OUR LIFETIMES REPUBLICANS PROMISED TO JOIN MR CLINTON IF HE TRULY HAS FOUND THAT DEFICITFIGHTING RELIGION IF PRESIDENTELECT CLINTON IS SERIOUS ABOUT DEFICITREDUCTION AND IF HE HAS THE SUPPORT OF HIS DEMOCRATIC COLLEAGUES IN CONGRESS SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID I CAN ASSURE YOU HE'LL HAVE THE SUPPORT OF THE REPUBLICANS IN THE SENATE MR BENTSEN SAID MR CLINTON HASN'T DECIDED WHETHER TO PROPOSE A DEFICITWIDENING FISCAL STIMULUS TO HELP THE ECONOMY IN THE SHORT RUN LEON PANETTA MR CLINTON'S CHOICE TO RUN THE WHITE HOUSE BUDGET OFFICE SAID THIS WEEK THAT ANY STIMULUS PACKAGE PROBABLY WOULD BE CLOSER TO 20 BILLION THAN 60 BILLION TALKING WITH REPORTERS AFTER YESTERDAY'S HEARING MR BENTSEN CONCURRED HE NOTED THAT ONE OF THE MAJOR TOOLS FOR STIMULATING THE ECONOMY IS AN INVESTMENT TAX CREDIT THAT WOULD BE DESIGNED TO ENCOURAGE NEW INVESTMENT WITHOUT REWARDING COMPANIES FOR INVESTMENTS THAT WOULD HAVE BEEN MADE OTHERWISE MANY ECONOMISTS ADVOCATE THAT SORT OF TAX CREDIT ALTHOUGH TAX LAWYERS HAVE RESERVATIONS THAT'S NOT AN EASY ONE TO DESIGN MR BENTSEN SAID BUT IT DOES GIVE YOU MORE BANG FOR THE BUCK ALTHOUGH NO ONE ASKED MR BENTSEN NOTED WITH DISAPPROVAL THE CALLS FROM SOME THAT US DEVALUE THE DOLLAR TO BOLSTER US EXPORTS THE DOLLAR SHOULD BE BASED AND NORMALLY IS ON MARKET FORCES ON THE PRODUCTIVITY OF THE COUNTRY ON ITS FISCAL RESPONSIBILITY ON ITS INTEREST RATES HE SAID HE ADDED THAT HE HAS ALREADY MET WITH FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN AND EXPECTS TO CONFER WITH HIM FREQUENTLY TO HAVE THE ADMINISTRATION AND THE FEDERAL RESERVE WORKING TOGETHER FOR GROWTH AND GETTING THIS DEFICIT DOWN AS MR PANETTA DID EARLIER IN THE WEEK MR BENTSEN MADE A POINT OF EMPHASIZING THE NEED FOR COOPERATION FROM THE FED MR BENTSEN SAID HE HOPES TO HAVE MORE FREQUENT PRIVATE MEETINGS OF THE FINANCE MINISTERS OF THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS INCLUDING JAPAN AND GERMANY TO PUT TOGETHER GROWTH POLICIES MOST OF THAT HAS TO BE DONE IN PRIVATE CONSULTATION AND NOT IN PUBLIC BULLYING BECAUSE I THINK THAT'S COUNTERPRODUCTIVE HE ADDED SENATORS ALSO GAVE WARM RECEPTIONS TO TWO OTHER CLINTON NOMINEES RICHARD RILEY FOR EDUCATION SECRETARY AND HENRY CISNEROS FOR SECRETARY OF HOUSING AND URBAN DEVELOPMENT MR CISNEROS PLEDGED TO SPEED UP SPENDING OF 85 BILLION IN HOUSING FUNDS THAT HE SAID HAVE BEEN DELAYED BY GOVERNMENT RED TAPE HE SAID HE WOULD CLEAR AWAY OBSTACLES TO SPENDING 25 BILLION IN FUNDS ALREADY APPROPRIATED FOR THE HOME INVESTMENT PARTNERSHIPS PROGRAM AN AFFORDABLEHOUSING PROGRAM AND 6 BILLION FOR MODERNIZING PUBLICHOUSING UNITS AT THE HEARING BEFORE THE SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE D MICH SAID HE WOULD URGE MR CLINTON TO SET UP A WHITE HOUSE INTERAGENCY COUNCIL TO COORDINATE ALL POLICIES THAT AFFECT URBAN AREAS FROM WELFARE REFORM TO WORKER TRAINING TO TRANSPORTATION ISSUES AND TO MAKE MR CISNEROS THE HEAD OF IT MR CISNEROS REPLIED IN SPANISH EXPLAINING THAT THE EXPRESSION MEANT DON'T HELP ME SO MUCH PROVOKING ONE OF THE FEW LAUGHS IN THE HEARING MR CISNEROS ALSO VOICED SUPPORT FOR USING PENSION FUNDS FOR IMPORTANT SOCIAL NEEDS SUCH AS REVITALIZING INNER CITIES PROVIDED THERE ARE SUFFICIENT SAFEGUARDS IN PLACE AND ECHOED MR CLINTON'S SUPPORT FOR COMMUNITY DEVELOPMENT BLOCK GRANTS THE MORTGAGEREVENUE BOND PROGRAM AND THE LOWINCOME HOUSING TAX CREDIT MR RILEY EMBRACED MR CLINTON'S PROPOSALS FOR NATIONAL STUDENT STANDARDS AND TESTING TO MEET EDUCATION GOALS AND A PROGRAM ALLOWING STUDENTS TO PAY BACK COLLEGE LOANS THROUGH COMMUNITY SERVICE MR RILEY WHO DREW ACCLAIM FROM LABOR AND EDUCATION COMMITTEE MEMBERS FOR PUBLICEDUCATION IMPROVEMENTS HE PUSHED THROUGH AS GOVERNOR OF SOUTH CAROLINA VOWED TO WORK WITH OTHER FEDERAL AGENCIES TO EMPHASIZE THE LINK BETWEEN CHILDREN'S HEALTH THEIR READINESS TO LEARN AND THEIR PREPAREDNESS FOR THE WORK FORCE HE REJECTED APPEALS FROM REPUBLICANS FOR PUBLIC SPENDING ON PRIVATESCHOOL CHOICE AND DISMISSED CRITICISM OF HIS LAW FIRM'S TIES TO A COMPANY ACCUSED OF VIOLATING ENVIRONMENTAL LAWS I'M PROUD OF BEING AN ENVIRONMENTALIST MR RILEY SAID ADDING THAT HE PERSONALLY HADN'T DONE ANY WORK FOR THE COMPANY IN QUESTION HE SAID HE WAS MINDFUL OF DEFICITREDUCTION GOALS BUT EMPHASIZED LONGTERM INVESTMENTS IN EDUCATION BECAUSE THAT'S THE ONLY WAY FOR US TO COME OUT OF THIS ECONOMIC HOLE WE'RE IN LAURIE MCGINLEY AND CATHY TROST CONTRIBUTED TO THIS ARTICLE 9301130115 930113 MARKETING & MEDIA ESCADA TO SELL ITS 80 STAKE IN ST JOHN KNITS BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL GERMANY'S ESCADA AG HOBBLED BY STEEPERTHANEXPECTED LOSSES IN FISCAL 1992 AND A PLUNGING STOCK PRICE INTENDS TO SELL ITS 80 STAKE IN THE CALIFORNIABASED ST JOHN KNITS UNIT ACQUIRED TWO YEARS AGO LATE LAST WEEK AS ESCADA'S STOCK PRICE TUMBLED AND SPECULATION HEIGHTENED THAT THE GERMAN FASHION COMPANY WAS ON THE VERGE OF A CRISIS ESCADA ISSUED A STATEMENT THAT ITS OPERATING LOSS FOR THE YEAR ENDING OCT 13 1992 WOULD BE AS HIGH AS 100 MILLION MARKS 613 MILLION OR THREE TIMES HIGHER THAN ANALYSTS' EARLIER ESTIMATES INDUSTRY OBSERVERS REGARD THE PROPOSED SALE OF ST JOHN KNITS AS A BLOW TO ESCADA'S WORLDWIDE EXPANSION DRIVE ESCADA ACQUIRED ITS INTEREST IN ST JOHN FROM THE COMPANY'S FOUNDING FAMILY FOR AN UNDISCLOSED SUM IN 1990 WOLFGANG LEY COFOUNDER OF ESCADA OFTEN REFERRED TO THE TONEY KNITWEAR DIVISION AS THE JEWEL OF ESCADA THE COMPANY IS FACING A LIQUIDITY CRISIS AND THEY NEED CASH FAST TO REDUCE THEIR DEBT LEVELS SAID LIONEL DE FALLETANS A SECURITIES ANALYST AT CSFBEFFECTENBANK IN FRANKFURT HE ESTIMATES THAT ESCADA'S CURRENT DEBT HAS TRIPLED SINCE 1990 TO ABOUT 330 MILLION MARKS WHICH WOULD REQUIRE INTEREST PAYMENTS OF MORE THAN 30 MILLION MARKS ESCADA'S STOCK TRADED ON THE GERMAN STOCK EXCHANGES HAS LOST NEARLY 90 OF ITS VALUE FROM ITS PEAK IN 1992 SINCE MIDDECEMBER SHARES HAVE SLID MORE THAN 40 FOUNDED IN 1976 BY MR LEY A GERMAN BUSINESSMAN AND HIS DESIGNER WIFE MARGARETHA ESCADA BECAME ONE OF THE MOST HIGHPROFILE MARKETERS OF WOMEN'S LUXURY APPAREL BASED IN DORNACH ESCADA TODAY OPERATES 110 BOUTIQUES WORLDWIDE UNDER ITS ESCADA CRISCA AND LAUREL BRANDS AS WELL AS 10 ST JOHN KNITS BOUTIQUES BUT BIG EXPENDITURES FROM RAPID EXPANSION THE SLOWDOWN IN DEMAND FOR LUXURY GOODS AND INTERNAL MANAGEMENT PROBLEMS LED TO A 229 DROP IN NET INCOME LAST YEAR TO 451 MILLION MARKS ON SALES OF 136 BILLION MARKS AND ESCADA'S HEAD DESIGNER MRS LEY DIED IN MAY SINCE THEN ESCADA HAS BEEN REALIGNING AND RESTRUCTURING LARGELY UNDER HAN WOITSCHAETZKE FORMER HEAD OF PUMA A GERMAN ATHLETIC SHOE COMPANY HE WAS HIRED LAST YEAR TO ASSUME THE NEW POST OF COCHIEF EXECUTIVE ACCORDING TO INDUSTRY SOURCES MR LEY CHAIRMAN AND COCHIEF EXECUTIVE HAS BEEN SIDELINED FROM HIS FORMER MANAGEMENT ROLE AND HAS BEEN DEVOTING HIS TIME TO REVIVING THE FLAGSHIP ESCADA DIVISION MR LEY DIDN'T RETURN PHONE CALLS SEEKING COMMENT ESCADA HAS BEEN A GREAT PARTNER TO US AND I FEEL SAD FOR THEIR SAKE THAT THEY HAVE TO SELL ST JOHN SAID ROBERT GRAY COFOUNDER OF ST JOHN KNITS CHAIRMAN AND CHIEF FISCAL 1992 WAS THE UNIT'S BEST YEAR EVER HE SAID NOTING THE DIVISION'S PROFIT OF ABOUT 8 MILLION ON SALES OF ABOUT 81 MILLION 9301130114 930113 US SAVINGS BOND SALES SURGED IN '92 TO RECORD WASHINGTON US SAVINGS BOND SALES SOARED LAST YEAR BREAKING A RECORD SET DURING WORLD WAR II SALES IN 1992 REACHED 1766 BILLION EXCEEDING THE PREVIOUS HIGH OF 1238 BILLION SET IN 1944 THE TREASURY SAID DECEMBER WAS A BANNER MONTH WITH SAVINGSBONDS SALES HITTING 171 BILLION UP 97 FROM DECEMBER 1991 ONCE CONSIDERED A CONSERVATIVE LONGTERM VEHICLE FOR SMALL INVESTORS SAVINGS BONDS HAVE BEEN GROWING IN POPULARITY BECAUSE OF THEIR RELATIVELY HIGH YIELDS COMPARED WITH MARKET RATES SERIES EE BONDS PAY A GUARANTEED MINIMUM OF 6 ANNUALLY IF HELD FIVE YEARS OR MORE PURCHASES IN ANY ONE INDIVIDUAL'S NAME ARE LIMITED TO 15000 A YEAR IN A NEWS RELEASE ACTING US TREASURER KATE TODD BEACH SAID THAT AMERICANS HAVE LEARNED THAT BONDS ARE A SAFE AND FLEXIBLE INVESTMENT TOOL THE VALUE OF US SAVINGS BONDS HELD BY AMERICANS AT THE END OF DECEMBER REACHED A TOTAL OF 15726 BILLION UP FROM 13812 BILLION A YEAR EARLIER THE TREASURY SAID 9301130113 930113 UNITED CITIES GAS RATE RISE BRENTWOOD TENN UNITED CITIES GAS CO SAID THE KANSAS CORPORATION COMMISSION APPROVED A RATE INCREASE OF 915000 IN ANNUAL REVENUE THE GAS COMPANY SAID IT EXPECTS THE NEW RATE TO BE IN EFFECT BY MIDJANUARY FOR ABOUT 69000 CUSTOMERS IN KANSAS THE AVERAGE RESIDENTIAL CUSTOMER'S BILL WILL INCREASE ABOUT 1 OR 10 A YEAR THE COMPANY SAID UNITED CITIES WHICH REQUESTED A 63 MILLION INCREASE SAID IT MAY APPEAL THE RULING 9301130112 930113 ECONOMY RISE IN DEMAND MAY HELP FIRM WEAK OIL PRICES US DELIVERIES IN '92 GREW 16 FIRST REAL GROWTH SINCE 1988 REPORT SAYS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL A NEW INDUSTRY REPORT SHOWS A SUBSTANTIAL RISE IN US OIL DEMAND THAT COULD SOON HELP FIRM UP THE WEAK OIL MARKET THE REPORT BEING RELEASED THIS MORNING BY THE AMERICAN PETROLEUM INSTITUTE WILL SAY THAT 1992 DELIVERIES OF PETROLEUM PRODUCTS ITS MEASURE OF DEMAND ROSE 16 TO AN AVERAGE OF NEARLY 17 MILLION BARRELS A DAY IN THE US THE WORLD'S BIGGEST USER OF PETROLEUM THAT WILL MARK THE FIRST TIME SINCE 1988 THAT THERE HAS BEEN MORE THAN A MARGINAL YEARTOYEAR INCREASE IN PETROLEUM DEMAND IN THE US THIS ACCORDING TO THE API REFLECTS THE STIRRINGS OF A TURNAROUND IN THE ECONOMY THE BIG OIL ASSOCIATION DOESN'T MAKE A FORECAST FOR 1993 DEMAND IN THE REPORT EVIDENCE THAT THE INCREASE IN OIL USE ISN'T RESTRICTED TO THE US MAY ALSO COME TODAY FROM THE INTERNATIONAL ENERGY AGENCY THE AGENCY REPRESENTS MAJOR CAPITALIST OILCONSUMING NATIONS AND ITS MONTHLY REPORT TO BE RELEASED IN PARIS TODAY IS LIKELY TO REAFFIRM ESTIMATES THAT 1992 WORLD PETROLEUM DEMAND WAS UP 400000 BARRELS A DAY TO AN AVERAGE OF 67 MILLION BARRELS THE PARISBASED AGENCY ALSO IS EXPECTED TO PROJECT CONTINUING GAINS IN WORLD OIL DEMAND FOR THIS YEAR IT PREVIOUSLY REVISED DOWNWARD ITS ESTIMATES OF OIL DEMAND IN THE FIRST AND SECOND QUARTERS OF 1993 AND MAY DO SO AGAIN STILL IT IS LIKELY TO CONTINUE TO FORECAST HIGHER OIL USE ON A YEARTOYEAR BASIS FOR BOTH PERIODS SUCH BULLISH REPORTS COULD HELP REVERSE RECENT SLIDES IN WORLD OIL PRICES HAMMERED BY ABUNDANT SUPPLIES AND UNSEASONABLY WARM WEATHER PRICES FELL AGAIN YESTERDAY WITH CRUDE OIL FOR FEBRUARY DELIVERY DROPPING 40 CENTS TO 1838 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE WORLD OIL DEMAND HAS BEEN SLUGGISH SINCE PRICES SURGED IN 1990 IN THE WAKE OF THE IRAQI INVASION OF KUWAIT IN THE US PETROLEUM PRODUCT DELIVERIES DECLINED 15 TO 2 IN 1990 AND 1991 THE API SAYS IN ITS REPORT THAT 1992 DELIVERIES OF ALL MAJOR PRODUCTS GASOLINE KEROSENE JET FUEL AND DISTILLATES WHICH INCLUDE HEATING OIL REVERSED THEIR EARLIER DECLINES GASOLINE DELIVERIES REFLECTING GROWTH IN HIGHWAY TRAVEL OF AROUND 33 ROSE 14 AFTER THREE YEARS OF DECREASES THE API SAYS THE SLIDE IN DOMESTIC CRUDE OIL PRODUCTION RESUMED IN 1992 HOWEVER AFTER A SLIGHT INCREASE THE PREVIOUS YEAR THE API'S REPORT WILL SHOW THAT US CRUDE OIL OUTPUT FELL 38 TO AN AVERAGE OF 71 MILLION BARRELS A DAY LAST YEAR THE COMBINATION OF RISING DEMAND AND FALLING PRODUCTION LED TO THE FIRST INCREASE IN US OIL IMPORTS IN THREE YEARS THE API SAYS IMPORTS OF CRUDE OIL AND PETROLEUM PRODUCTS AVERAGED MORE THAN 78 MILLION BARRELS A DAY IN 1992 29 HIGHER THAN THE 1991 LEVEL AT YEAR END ACCORDING TO THE API US INVENTORIES OF CRUDE OIL AND PRODUCTS TOTALED 103 BILLION BARRELS THAT WAS 15 LESS THAN THE LEVEL AT THE END OF 1991 STILL THE SIZE OF WORLD OIL INVENTORIES PARTICULARLY THOSE IN THE US AND HIGH PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAVE BEEN BLAMED FOR THE PLUNGE IN OIL PRICES IN RECENT MONTHS OPEC PRODUCTION CONTINUES AT AROUND 25 MILLION BARRELS A DAY BUT LATE YESTERDAY AFTER THE OIL FUTURES MARKET HAD CLOSED THE API RELEASED WEEKLY US OIL STATISTICS SHOWING THAT INVENTORIES OF CRUDE FELL 12 MILLION BARRELS LAST WEEK FROM THE WEEK BEFORE STOCKS OF DISTILLATES AND GASOLINE ROSE 11 MILLION AND 54 MILLION BARRELS RESPECTIVELY WHILE THESE WEEKLY FIGURES ARE LIKELY TO BE INTERPRETED AS BEARISH BY SOME OIL MARKET PARTICIPANTS US GASOLINE INVENTORIES OF 2206 MILLION BARRELS ARE LOWER THAN THE 2246 MILLION BARRELS OF A YEAR AGO WHILE DISTILLATE STOCKS ARE ABOUT THE SAME AS THOSE OF A YEAR AGO CRUDE OIL INVENTORIES ARE DOWN TO 3203 MILLION BARRELS FROM 3348 MILLION BARRELS AT THIS TIME LAST YEAR 9301130111 930113 INTERNATIONAL CHINA'S NEW RICH SEEK THE GOOD LIFE DEMAND SWELLS FOR SWISS WATCHES DESIGNER CLOTHES BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING WITH HIS ITALIAN JACKET SWISS WATCH CASHMERE SWEATER AND HANDTOOLED CALFSKIN PURSE 28YEAROLD BAO SHIPING LOOKS LIKE A MILLION DOLLARS ACTUALLY HE'S WEARING ONLY ABOUT 3500 BUT HE HAS LOTS MORE FOR OTHER DAYS LIKE MANY CASHING IN ON CHINA'S ECONOMIC BOOM THIS SELFEMPLOYED COMPUTER SALESMAN SPENDS HIS LEISURE HOURS SHOPPING AND HE MUCH PREFERS PRICEY IMPORTS MR BAO SAYS HE OWNS MORE THAN 8000 OF SWISS WATCHES IT IS DIFFICULT FOR MEN BECAUSE WATCHES ARE THE ONLY REAL JEWELRY THAT WE CAN WEAR SAYS MR BAO PULLING BACK THE SLEEVE OF HIS GOLDBUTTONED LEATHER JACKET TO DISPLAY A 2500 RADO TIMEPIECE WHILE PERCAPITA URBAN INCOME IN CHINA IS STILL LESS THAN 450 A YEAR SUCH CASHRICH ENTREPRENEURS AS MR BAO ALONG WITH SALARIED WORKERS SEEKING TO BOOST THEIR STATUS ARE FUELING A ROBUST LUXURYGOODS MARKET BECAUSE SO MUCH OF WHAT CHINESE EARN AND SPEND TAKES PLACE OFF THE BOOKS TO AVOID TAXES AND GOVERNMENT MEDDLING THERE ARE NO RELIABLE STATISTICS ON HOW MANY OF CHINA'S 116 BILLION PEOPLE CAN AFFORD HIGHTICKET ITEMS BUT THE PROLIFERATION OF EXPENSIVE BOUTIQUES ACROSS THE COUNTRY ALONG WITH IMPRESSIVE PROFITS CHALKED UP BY IMPORTERS INDICATE THAT CHINA MAY BE ONE OF THE FASTESTGROWING MARKETS FOR LUXURY PRODUCTS IN THE LATE 1970S AS CHINA EMERGED FROM THE CHAOTIC CULTURAL REVOLUTION EVERYBODY WANTED THREE WHEELS AND A SPEAKER A WATCH BICYCLE SEWING MACHINE AND RADIO IN THE 1980S IT WAS THREE MACHINES AND A FAN A TELEVISION SET WASHING MACHINE TAPE PLAYER AND ELECTRIC FAN THE MAXIM FOR CHINA TODAY COULD BE DRAPE DANGLE DOODLE AND DRINK MEANING CLASSY CLOTHES FLASHY JEWELRY EXPENSIVE PENS AND TOPSHELF BOOZE HONG KONG LIQUOR DEALERS ESTIMATE THAT THREE MILLION BOTTLES OF LEGALLY IMPORTED COGNAC ALONG WITH HUGE AMOUNTS SMUGGLED FROM THE BRITISH COLONY WERE CONSUMED IN CHINA IN 1992 PIERRE CARDIN WHICH OPENED ITS FIRST BOUTIQUE IN CHINA IN LATE 1989 IS SET THIS YEAR TO ADD 50 MORE STORES TO THE 50 ALREADY IN OPERATION SWITZERLAND'S RADO WATCH CO EXPECTS TO SELL 10000 WATCHES IN CHINA THIS YEAR AT AN AVERAGE RETAIL PRICE OF 1300 MERCEDESBENZ ALSO A FAVORITE OF SMUGGLERS IMPORTED ABOUT 1000 SEDANS INTO CHINA LAST YEAR A FOURFOLD INCREASE FROM 1991 FOR A LONG TIME I HAVE THOUGHT THIS WOULD BE THE LARGEST MARKET IN THE WORLD FOR LUXURY GOODS BUT I DIDN'T EXPECT IT TO BE HAPPENING SO SOON SAYS ERIC STEINER ASIA SALES MANAGER FOR RADO WATCH CO MR STEINER FIRST CAME TO CHINA IN 1974 TO ATTEND A SWISS INDUSTRIAL EXHIBITION AT THE TIME THE CHINESE TRADING MONOPOLY WAS BEGINNING TO PURCHASE MILLIONS OF LOWPRICED SWISS WATCHES RADO DECIDED NOT TO COMPETE FOR THAT BUSINESS BUT IN THE MAOSUITCLAD MASSES THAT HE WATCHED TRUDGE THROUGH THE CITIES MR STEINER SENSED MANY FUTURE BUYERS OF RADO'S EXPENSIVE MODELS I WAS ALREADY DEALING WITH TAIWAN AND HONG KONG AND THE CHINESE COMMUNITIES IN THAILAND MALAYSIA AND OTHER PLACES IN SOUTHEAST ASIA DOMINATED THE WATCH TRADE HE SAYS I WAS SURE THAT MAINLAND CHINESE WEREN'T ANY DIFFERENT FROM TAIWANESE AND THEY WOULDN'T BEHAVE SO DIFFERENTLY ONCE THEY HAD SOME OPPORTUNITIES WHEN DENG XIAOPING IN 1978 OPENED CHINA'S DOORS TO FOREIGN INVESTORS RADO WAS WAITING ON THE DOORSTEP THE COMPANY IMMEDIATELY STARTED LUXURY IMAGEBUILDING PRINT AND TV ADVERTISEMENTS FROM 1981 TO 1983 RADO PRODUCED A BIWEEKLY STUDENT QUIZ SHOW THAT WAS BROADCAST ON TELEVISION STATIONS IN FOUR MAJOR CHINESE CITIES BUT THE PROGRAM WAS CANCELED WHEN A MEMBER OF THE NATIONAL PEOPLE'S CONGRESS COMPLAINED THAT A FOREIGN COMPANY SHOULDN'T BE EDUCATING CHINA'S CHILDREN WE PURPOSELY AIMED AT YOUTH BECAUSE WE THOUGHT THESE YOUNG PEOPLE WILL BE THE FIRST GENERATION GROWING UP WITH REFORMS SO THEY WILL HAVE A LOT MORE POSSIBILITIES SAYS MR STEINER AN ENERGETIC 54YEAROLD SWISSGERMAN WHO SEEMS DETERMINED TO STRAP A RADO ON EVERY WRIST IN CHINA AFTER TWO YEARS OF ADVERTISING RADO FINALLY CONVINCED THE GOVERNMENT TRADING MONOPOLY TO PURCHASE ITS WATCHES THEY SOLD LIKE HOT CAKES IN 1982 RADO SOLD 15000 OF ITS LOWESTPRICED WATCH WHICH THEN RETAILED FOR ABOUT 420 RADO GRADUALLY INTRODUCED HIGHERPRICED MODELS AND ELIMINATED CHEAPER WATCHES TO KEEP THE CACHET OF EXCLUSIVITY BUT NOT ALL OF RADO'S CUSTOMERS ARE WEALTHY ENTREPRENEURS LIKE MR BAO XIN SHAOHONG 40 IS A BEIJING CITY CONSTRUCTION ENGINEER WHO WITH HIS ACCOUNTANT WIFE EARNS A TOTAL OF 190 A MONTH LIKE MOST CITYDWELLERS MR XIN SPENDS NEARLY HALF HIS INCOME ON FOOD BUT HIS RENT IS ONLY 3 A MONTH AND TRANSPORTATION IS FREE BECAUSE THE FAMILY RIDES BICYCLES SO MR XIN HAS SIGNIFICANT DISPOSABLE INCOME AND SAVINGS OF ABOUT 1800 WHEN YOU FIRST MEET ME YOU LOOK AT MY WATCH AND YOU KNOW I EARN A GOOD SALARY SAYS MR XIN WHOSE WIFE HAD URGED HIM TO PURCHASE THE 3000 MODEL DECORATED WITH DIAMONDS TO PROVE THAT HE IS A REAL MAN MR XIN'S FATHER WAS A COLONEL WHO COORDINATED MARXIST POLITICAL THOUGHT CLASSES FOR CHINA'S MILITARY SCHOOLS MR XIN SAYS HIS 1200 RADO DOESN'T CONFLICT WITH HIS FATHER'S LIFELONG DEVOTION TO MARXISM HE SAYS HIS ABILITY TO BUY THE WATCH DEMONSTRATES THE ACCOMPLISHMENTS OF BOTH HIS GENERATION AND HIS FATHER'S THERE ARE A LOT OF ASPECTS OF MARXISMLENINISM THAT AREN'T APPLICABLE TODAY SAYS MR XIN PROVING THAT THE MARKET ECONOMY CAN WORK IN CHINA IS WHAT LED YANG ZHONGWEI 41 INTO THE LUXURYGOODS BUSINESS MR YANG WAS A RESEARCH ECONOMIST AT CHINA'S ACADEMY OF SOCIAL SCIENCE BUT IN THE WAKE OF THE JUNE 1989 TIANANMEN SQUARE KILLINGS THE ACADEMY WAS DECLARED A DISASTER AREA BECAUSE OF ITS LIBERAL LEANINGS AND THE ACADEMY'S SCHOLARS WEREN'T ALLOWED TO CONTINUE THEIR RESEARCH SO MR YANG DECIDED TO TEST HIS ECONOMIC THEORIES AND THAT MEANT RENEWING HIS ASSOCIATION WITH FRENCH FASHION DESIGNER PIERRE CARDIN WHICH IN 1980 HAD STAGED CHINA'S FIRST FASHION SHOW SINCE THE COMMUNIST REVOLUTION MR YANG HAD CONDUCTED A STUDY OF THE CHINESE MARKET FOR PIERRE CARDIN WHEN THE COMPANY WAS PREPARING TO OPEN A CLOTHING FACTORY IN TIANJIN IN 1987 WITH MONEY BORROWED FROM FRIENDS MR YANG OPENED PIERRE CARDIN'S FIRST RETAIL OUTLET IN CHINA A SMALL BOUTIQUE ON WANGFUJING STREET BEIJING'S MAIN SHOPPING ARTERY MR YANG WHO HAS THE EXCLUSIVE RIGHT TO SELL PIERRE CARDIN PRODUCTS IN BEIJING AND SHANGHAI NOW HAS 12 BOUTIQUES THE PIERRE CARDINLABEL SUITS IN HIS SHOPS SELL FOR ABOUT 400 EACH MR YANG SAYS SALES AT HIS ORIGINAL WANGFUJING BRANCH REACHED 27 MILLION IN 1992 AND THE PIERRE CARDIN FACTORY IN TIANJIN HE SAYS IS NOW GEARING UP TO DOUBLE ITS RODUCTION TO 400000 SUITS A YEAR 9301130110 930113 INTERNATIONAL SHETLAND ISLANDS OIL SPILL MAY CAUSE LESS DAMAGE THAN ALASKAN DISASTER BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL SUMBURGH HEAD SCOTLAND IT WON'T BE THE EXXON VALDEZ ALL OVER AGAIN BUT IT'S A BIG DEADLY DAMAGING OIL SPILL ALL THE SAME THAT WAS THE PRELIMINARY CONCLUSION OF MARINE OFFICIALS AND SCIENTISTS AFTER THE BREAKUP OF THE SUPERTANKER BRAER IN ICY HURRICANEDRIVEN SEAS ON THE ROCKY SHORES OF THE SHETLAND ISLANDS THE GROUNDED SHIP FINALLY WRENCHED APART EARLY YESTERDAY AFTER A WEEK OF CONSTANT POUNDING SPILLING WHATEVER REMAINED OF ITS 25MILLIONGALLON CARGO OF LIGHT NORWEGIAN CRUDE THAT'S MORE THAN TWICE THE AMOUNT DUMPED IN THE 1989 ALASKAN DISASTER BUT AERIAL SURVEYS DISCLOSE SURPRISINGLY LITTLE MIGRATION OF OIL DURING THE DAY AND ALMOST NO INCREASE IN THE AMOUNT OF OIL FLOATING ON THE WATER ONLY ABOUT 30 MILES OF WESTERN SHETLAND COASTLINE HAS BEEN AFFECTED MOST OF THAT BY LIGHT SHEEN EVEN WHERE LARGE CONCENTRATIONS OF OIL HAVE COME ASHORE THE CRUDE HAS LEFT ONLY A THIN GREASY FILM INSTEAD OF THE BLACK GOO NORMALLY ASSOCIATED WITH SPILLS BECAUSE THE HIGH SEAS AND WINDS SEEMED TO QUICKLY DISSIPATE THE OIL SLICK BRITISH SPILL OFFICIALS EVEN HELD OUT HOPE THAT A MASSIVE BEACH CLEANUP MIGHT NOT BE NECESSARY BY CONTRAST THE EXXON VALDEZ SPILL FOULED HUNDREDS OF MILES OF PRINCE WILLIAM SOUND SHORELINE WITH THICK MATS OF OIL AND REQUIRED MORE THAN 25 BILLION AND THREE YEARS TO CLEAN UP THE GROSS POLLUTION THAT YOU USUALLY ASSOCIATE WITH OIL SPILLS SIMPLY ISN'T THERE SAID DR BEDBOROUGH CHIEF SCIENTIST WITH BRITAIN'S MARINE POLLUTION CONTROL UNIT WHO VIEWED THE SPILL BY AIR STILL MR BEDBOROUGH SAID IT WAS PREMATURE TO DECLARE THE DISASTER OVER NOR COULD SCIENTISTS SAY WITH CERTAINTY THAT THE BRAER'S OIL ISN'T CAUSING UNSEEN PROBLEMS TO THE SHETLANDS' MARINE ENVIRONMENT THE BEST EXPLANATION IS THAT THE HIGHLY VOLATILE PROPERTIES OF THE CRUDE TOGETHER WITH THE FURIOUSLY CHURNING SEAS HAVE CAUSED MUCH OF IT TO EVAPORATE OR DISPERSE ON THE OTHER HAND THE OIL HAS HIGH CONCENTRATIONS OF BENZENE AND RELATED HYDROCARBONS MAKING IT CONSIDERABLY MORE TOXIC THAN THE OIL SPILLED IN THE VALDEZ ACCIDENT THUS AREAS THAT TOOK THE BRUNT OF THE SPILL NOTABLY QUENDALE BAY A SCENIC THREESQUAREMILE BIRDWATCHING AREA HAVE ALMOST CERTAINLY EXPERIENCED CATASTROPHIC DAMAGE THERE'S NO DOUBT THAT THE AREAS NEAR THE SHIP HAVE BEEN DESTROYED SAID SIAN PULLEN A WILDLIFE BIOLOGIST WITH THE WORLD WIDE FUND FOR NATURE SHE SAID A BIG UNKNOWN IS WHETHER THE LIGHT CRUDE MIGHT BE KILLING OFF MUCH OF THE FOOD CHAIN AS IT ROAMS BENEATH THE SURFACE BUT ENVIRONMENTALISTS CONCEDED THEY FEARED MUCH WORSE WHEN THE TANKER AFTER LOSING POWER IN A GALE WENT AGROUND ON JAN 5 THUS FAR THE SHETLANDS' EASTERN SIDE HAS BEEN SPARED BIRD DEATHS ARE ESTIMATED AT 6000 AND A SCORE OF MARINE MAMMALS HAVE LIKELY BEEN KILLED BUT THOSE NUMBERS ARE NOTHING LIKE THE 645000 BIRDS AND 6000 MARINE MAMMALS THOUGHT TO HAVE DIED IN THE ALASKA SPILL FISHING INTERESTS SAY THE ISLANDS' FISHING INDUSTRY ALSO MAY HAVE DODGED A BULLET ASSUMING THE OIL STAYS BOTTLED UP IN SHETLANDS' SOUTHERN QUADRANT AND CONTINUES TO BREAK UP RAPIDLY IT'S STILL A NERVOUS TIME BUT WE'RE HOPEFUL THAT THE WEATHER IS WITH US ON THIS ONE SAID ALISTAIR GOODLAD A SHETLAND SALMON FARMER THE EUROPEAN COMMUNITY SAID IT WILL GRANT MORE THAN 1 MILLION TO HELP THE SHETLAND ISLANDS RECOVER THE EC'S EXECUTIVE COMMISSION ALSO SAID IT WAS SPEEDING UP WORK ON MEASURES TO TIGHTEN MARITIME SAFETY CONTROLS TO PREVENT FUTURE SPILLS 9301130109 930113 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN MALAYSIA WILL PROPOSE CONSTITUTIONAL AMENDMENTS AIMED AT CURBING LEGAL PRIVILEGES OF THE COUNTRY'S WIDELY REVERED ROYAL FAMILIES THE ROYALTY THOUGH IT DOESN'T WIELD POWER DIRECTLY IS THE CONSTITUTIONALLY DECLARED PROTECTOR OF THE MALAY MAJORITY'S ISLAMIC FAITH CUSTOMS AND SPECIAL RIGHTS IN THE MULTIETHNIC COUNTRY THE PROPOSALS WOULD REVOKE THE NINE ROYAL SULTANS' IMMUNITY FROM PROSECUTION FOR OFFENSES IN A PERSONAL CAPACITY REDUCE THEIR POWERS TO PARDON PEOPLE OF CRIMES AND NONPAYMENT OF DEBT AND ALLOW PARLIAMENT TO CRITICIZE ANY OF THEIR MISDEEDS THEY WOULD WIDEN EXECUTIVE LEGISLATIVE AND JUDICIAL POWERS OVER THE ROYALS WHO NOW BALANCE AND INFLUENCE THE GOVERNMENT THE SULTANS ONE SERVES AS KING IN A ROTATING MONARCHY ARE TITULAR RULERS OF NINE OF MALAYSIA'S 13 STATES PARLIAMENT NEXT WEEK IS EXPECTED TO APPROVE THE AMENDMENTS WHICH WOULD ALLOW THE FIRST PROSECUTION OF A HEAD OF ONE OF THE ROYAL FAMILIES THE EFFORT TO REIN IN THE ROYALTY STEMMED PARTLY FROM A SULTAN'S BEATING OF A MAN LAST YEAR THE SULTANS ARE TO MEET SATURDAY TO WEIGH THEIR POSITION AND REJECTION COULD PRECIPITATE A CONSTITUTIONAL CRISIS THE 11THHOUR DRIVE BY THE US AND EUROPEAN COMMUNITY TO CONCLUDE THE SIXYEAROLD WORLD TRADE TALKS THIS WEEK HAS FALTERED NEGOTIATORS IN GENEVA SAID AN ACCORD APPEARS OUT OF REACH BEFORE BILL CLINTON TAKES OFFICE NEXT WEDNESDAY EVEN HOPES FOR A PROVISIONAL AGREEMENT HAD DIMMED UNTIL THE FRIDAY DEADLINE WAS EXTENDED TO TUESDAY FOR CONCLUDING LIBERALIZED RULES UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE EFFORTS TO CUT OR DROP TARIFFS GROUND TO A HALT AND BOTH SIDES WERE STUDYING HOW TO BREAK THE DEADLOCK TO ALLOW CONCLUSION OF THE BROADER PACT THE EUROPEAN COMMUNITY COMMISSION ENDORSED CREATING A FUND TO HELP REVIVE MEMBER STATES' FLAGGING ECONOMIES THE EUROPEAN INVESTMENT FUND WHICH COULD BE FORMED IN THE SECOND HALF IF APPROVED BY EC MINISTERS WOULD OFFER GUARANTEES TO SUPPORT PROJECTS VALUED AT AS MUCH AS 20 BILLION EUROPEAN CURRENCY UNITS 2412 BILLION THE FUND AND A NEW 5 BILLIONECU LOAN PROGRAM WOULD ENCOURAGE JOBCREATING INVESTMENTS IN TRANSPORTATION TELECOMMUNICATIONS AND ENERGY PROJECTS AND HELP BUSINESSES RAISE CAPITAL THE EC COMMISSION PROPOSED AMENDING THE EUROPEAN ECONOMIC AREA TREATY TO BRING THE EC'S NEIGHBORS INTO THE TRADE BLOC'S SINGLE MARKET REGARDLESS OF WHAT SWITZERLAND DOES SWISS VOTERS LAST MONTH REJECTED GOING ALONG WITH THE OTHER SIX MEMBERS OF THE EUROPEAN FREE TRADE ASSOCIATION IN JOINING THE 12MEMBER EC TO FORM THE EEA DELAYING ITS JAN 1 STARTUP IF THE OTHER GOVERNMENTS APPROVE THAT MARKET OF MORE THAN 380 MILLION CONSUMERS COULD BE UNIFIED BY JUNE HONG KONG WON'T PURSUE RULES TO PROTECT FINANCIAL DEPOSITS CITING OPPOSITION FROM THE PUBLIC AND THE FINANCIAL SECTOR INSTEAD LEGISLATION IS TO BE SUBMITTED THIS FALL FOR REGULATORY SUPERVISION AND SAFEGUARDS FOR SMALL DEPOSITORS IN BANK FAILURES THE ISSUE AROSE FROM THE 1991 CLOSURE OF A BANK OF CREDIT & COMMERCE INTERNATIONAL BRANCH AMID CRIMINAL ALLEGATIONS SOME DEPOSITORS LOST THEIR SAVINGS AND THE CLOSING SPARKED RUNS ON OTHER BANKS AND QUESTIONS ABOUT BANKING SYSTEM STABILITY TAIWAN WILL SPEND 100 MILLION TO DEVELOP A 740ACRE INDUSTRIAL SITE AT THE FORMER USRUN SUBIC NAVAL BASE IN THE PHILIPPINES THE PROJECT FOR LIGHT INDUSTRY IN THE SPECIAL ECONOMIC ZONE WILL BE FINANCED BY TAIWAN'S INTERNATIONAL ECONOMIC COOPERATION DEVELOPMENT FUND AS A JOINT VENTURE WITH THE PHILIPPINE GOVERNMENTOWNED NATIONAL DEVELOPMENT CORP CONSTRUCTION IS EXPECTED TO START IN JULY FOR COMPLETION A YEAR LATER THE ASIAN DEVELOPMENT BANK EXPECTS TO RAISE 29 BILLION ON INTERNATIONAL FINANCIAL MARKETS THIS YEAR AS PART OF ITS FIVEYEAR BORROWING PROGRAM TO MEET ASIAN COUNTRIES' GROWING DEMAND FOR FUNDS TO COVER INFRASTRUCTURE SPENDING AMID GENERALLY TIGHT CREDIT CONDITIONS THE MANILABASED BANK APPROVED THE 1993 FUNDING PLAN WHICH WOULD TAP THE REGION FOR MORE MONEY THAN IN THE PAST LAST YEAR THE DEVELOPMENTLENDING AGENCY BEGAN RAISING MORE THAN 17 BILLION THROUGH 1996 BY CONTRAST FROM 196691 THE ADB BORROWED 113 BILLION ON GLOBAL CAPITAL MARKETS THIS YEAR'S BORROWING TARGET WHICH INCLUDES ABOUT 400 MILLION TO REFINANCE DEBT IS DOWN 5 FROM LAST YEAR'S BORROWINGS BUT IS 22 TIMES THE TOTAL IN 1991 BASED ON PROJECTED SHARP INCREASES IN ADB LENDING COMMITMENTS ITS NEW BORROWINGS EXCLUDING THOSE FOR REFINANCING COULD TOTAL 36 BILLION IN 1994 38 BILLION IN 1995 AND 41 BILLION IN 1996 ADB LENDING THIS YEAR IS EXPECTED TO RISE 20 TO 48 BILLION FROM 1991 CORPORATE FAILURES IN FRANCE PLUNGED 27 TO A SEASONALLY ADJUSTED 4466 IN NOVEMBER FROM THE PREVIOUS MONTH BUT ROSE 18 FROM A YEAR EARLIER LAST YEAR MONTHLY FAILURES AVERAGED 4414 CHINESE HAS REPLACED ITALIAN AS CANADA'S THIRD MOSTCOMMON LANGUAGE SPOKEN AT HOME CENSUS DATA SHOW ENGLISH AND FRENCH ARE CANADA'S OFFICIAL LANGUAGES FROM 198691 THE POPULATION GREW 8 TO 27 MILLION 9301130108 930113 WHO'S NEWS DEL ELECTRONICS CORP DEL ELECTRONICS CORP VALHALLA NY MICHAEL TABER 47 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER AT THIS MAKER OF POWER SUPPLIES AND ELECTRONIC FILTERS MR TABER HAD BEEN PRESIDENT OF THE FILTRON DIVISION OF DEL'S RFI CORP UNIT THE CHIEF FINANCIAL OFFICER'S POST IS NEWLY CREATED THE DUTIES HAD BEEN SHARED BY WILLIAM KAUFMAN 58 AND LEONARD A TRUGMAN 54 MR KAUFMAN WILL CONTINUE AS VICE PRESIDENT OF ADMINISTRATION AND CORPORATE PURCHASING AND MR TRUGMAN WILL CONTINUE AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT 9301130107 930113 COMMODITIES REPORT ON PLANTINGS AND PRODUCTION IS EXPECTED TO LIFT WHEAT PRICES HURT CORN AND SOYBEANS BY JEFFREY TAYLOR AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL WHEAT FUTURES PRICES ARE EXPECTED TO RISE THIS MORNING IN RESPONSE TO A US AGRICULTURE DEPARTMENT REPORT SHOWING LOWERTHANEXPECTED WINTER WHEAT PLANTINGS THE AGRICULTURE DEPARTMENT REPORTED SEEDINGS OF 515 MILLION ACRES OF WINTER WHEAT ONLY ABOUT 400000 ACRES MORE THAN WERE PLANTED LAST YEAR DESPITE MANY INCENTIVES FOR FARMERS TO INCREASE WHEAT PRODUCTION GREATLY MOST GRAIN ANALYSTS HAD BEEN EXPECTING A FIGURE CLOSER TO 535 MILLION ACRES AT THE CHICAGO BOARD OF TRADE EARLY CALLS WERE FOR THE PRICE OF THE JULY WHEAT FUTURES CONTRACT TO RISE BY TWO TO THREE CENTS WITH THE ACTIVELY TRADED MARCH CONTRACT HOLDING STEADY OR RISING SLIGHTLY IN TRADING YESTERDAY THE MARCH WHEAT CONTRACT LOST 075 CENT TO END AT 36875 A BUSHEL WHILE THE JULY CONTRACT ROSE 075 CENT TO 322 A BUSHEL SEPARATELY THE AGRICULTURE DEPARTMENT RELEASED A 1992 ANNUAL CROP SUMMARY THAT SHOWED CORN PRODUCTION AT A RECORD HIGH 948 BILLION BUSHELS FOR 1992 OR 27 ABOVE THE 1991 CROP THE AVERAGE INDUSTRY ESTIMATE OF CORN PRODUCTION HAD BEEN ABOUT 932 BILLION BUSHELS SOYBEAN PRODUCTION FOR LAST YEAR WAS 22 BILLION BUSHELS UP 11 FROM 1991 THE AVERAGE TRADE GUESS WAS ABOUT 217 BILLION BUSHELS AS A RESULT OF THE HIGHERTHANEXPECTED CROP SUMMARY NUMBERS ANALYSTS SAID CORN AND SOYBEAN FUTURES PRICES ARE LIKELY TO DECLINE TODAY EARLY CALLS WERE FOR THE MARCH CORN CONTRACT TO FALL TWO TO THREE CENTS AND FOR THE MARCH SOYBEAN CONTRACT TO SLIP ABOUT FIVE CENTS AT THE CHICAGO BOARD OF TRADE MARCH CORN LOST 275 CENTS A BUSHEL TO SETTLE AT 22125 AND SOYBEANS FOR MARCH DELIVERY WERE UP 625 CENTS TO 58475 A BUSHEL THE WINTER WHEAT COMPONENT OF THE GOVERNMENT REPORT WILL COME AS A SHOCK TO MANY TRADERS ANALYSTS SAID IT'S A VERY BIG SURPRISE SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO WHAT IS AMAZING IS THAT THE PLANTINGS CAME IN BARELY ABOVE LAST YEAR DESPITE INCENTIVES TO PLANT MUCH MORE AMONG THE INCENTIVES FOR FARMERS TO PRODUCE MORE WINTER WHEAT THIS YEAR WERE RELATIVELY HIGH WHEAT PRICES COMPARED WITH CORN PRICES AND CHANGES IN GOVERNMENT FARM PROGRAMS TO ENCOURAGE MORE PLANTINGS THE DEPARTMENT ESTIMATED WHEAT EXPORTS AT 135 BILLION BUSHELS UP FROM 13 BILLION BUSHELS IN LAST MONTH'S ESTIMATE FEED USE OF WHEAT WAS ESTIMATED AT 225 MILLION BUSHELS DOWN FROM 250 MILLION BUSHELS LAST MONTH THE DEPARTMENT FORECAST FOOD USE OF WHEAT AT 830 MILLION BUSHELS DOWN FROM 835 MILLION BUSHELS LAST MONTH AND SEED USE OF WHEAT WAS ESTIMATED AT 95 MILLION BUSHELS DOWN FROM 98 MILLION THE GOVERNMENT'S QUARTERLY REPORT ON WHEAT STOCKS IN ALL POSITIONS SHOWED STOCKS AT 1589 BILLION BUSHELS SLIGHTLY HIGHER THAN THE AVERAGE ANALYSTS' ESTIMATE OF 1558 BILLION BUSHELS ALTHOUGH HIGHERTHANEXPECTED WHEAT STOCKS USUALLY HAVE A NEGATIVE IMPACT ON FUTURES PRICES ANALYSTS SAID THE EFFECT IN THIS CASE WOULD BE MITIGATED BY THE LOWERTHANEXPECTED WHEAT PLANTINGS CORN STOCKS IN ALL POSITIONS ON DEC 1 1992 TOTALED 79 BILLION BUSHELS UP 21 FROM A YEAR EARLIER COTTON STOCKS ARE EXPECTED TO BE 44 MILLION THE SAME AS LAST MONTH SANDRA KAUL COTTON ANALYST FOR SHEARSON LEHMAN BROTHERS SAID THE COTTON TOTALS IN THE REPORT WERE NEUTRAL FOR COTTON FUTURES PRICES SUGAR STOCKS ARE PROJECTED TO HAVE RISEN TO 134 MILLION BECAUSE OF LARGER IMPORTS FOR REEXPORT SORGHUM GRAIN STOCKS WERE ESTIMATED AT 604 MILLION BUSHELS UP 34 FROM THE PREVIOUS YEAR RICE PRODUCTION TOTALED 179 MILLION HUNDREDWEIGHT OR 14 MORE THAN IN 1991 THE REPORT SAID THAT HAY PRODUCTION FOR 1992 WAS DOWN 3 FROM THE YEAR BEFORE AT 149 MILLION TONS TOBACCO PRODUCTION WAS 168 BILLION POUNDS UP 1 FROM 1991 SUGAR PRODUCTION WAS 756 MILLION TONS RAW VALUE UP 6 FROM 1991 REFLECTING LARGER SUGAR CANE AND SUGAR BEET CROPS POTATO PRODUCTION TOTALED 412 MILLION HUNDREDWEIGHT LAST YEAR DOWN 1 FROM 1991 IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS GOLD FUTURES PRICES RALLIED DESPITE CONFIRMATION OF LONGSTANDING RUMORS THAT THE DUTCH CENTRAL BANK HAD SOLD A QUARTER OF ITS GOLD RESERVES IN OCTOBER AND NOVEMBER THE SALE OF 400 METRIC TONS OF BULLION RESERVES WAS THE LARGEST SINGLE CENTRALBANK SALE SINCE THE 1960S A METRIC TON EQUALS 220462 POUNDS TRADERS SAID THE FACT THAT THE MARKET WAS ABLE TO ABSORB SUCH A LARGE BULLION SALE WITHOUT SIGNIFICANT DISRUPTION GAVE SOME SUPPORT TO GOLD PRICES WHICH HAVE BEEN IN A PROLONGED SLUMP GOLD FOR FEBRUARY DELIVERY FINISHED 1 HIGHER AT 32880 AN OUNCE ON THE NEW YORK COMMODITY EXCHANGE AFTER TRADING AS HIGH AS 33070 EARLIER IN THE DAY IAN MCDONALD SENIOR METALS STRATEGIST FOR CREDIT SUISSE IN NEW YORK SAID MARKETS HAD SHOWN REMARKABLE RESILIENCE IN BEING ABLE TO ABSORB THE DUTCH SALE AND THE ESTIMATED 450 MILLION METRIC TONS OF OTHER CENTRALBANK GOLD LIQUIDATIONS LAST YEAR BUT HE CAUTIONED THERE ARE REASONS TO BELIEVE THE DUTCH SALE WILL BE NEGATIVE OVER THE INTERMEDIATE TO LONG TERM AS THE MARKET WILL EXPECT FURTHER LARGESCALE CENTRALBANK SALES THIS YEAR COPPER IN ONE OF THE BIGGEST SINGLEDAY SELLOFFS SINCE THE LATE 1980S THE PRICE OF THE FUTURES CONTRACT FOR MARCH DELIVERY PLUMMETED 65 CENTS TO CLOSE AT 9755 CENTS A POUND AMID PERSISTENT REPORTS OF CHINESE SELLING AND CONCERNS ABOUT WEAKERTHANEXPECTED DEMAND FOR THE WIDELY USED INDUSTRIAL METAL ANALYSTS SAID THAT ONCE MARCH COPPER PLUNGED THROUGH THE CRITICAL 1APOUND RESISTANCE LEVEL COMMODITYFUND MANAGERS BEGAN LIQUIDATING LARGE CHUNKS OF THEIR COPPER FUTURES HOLDINGS BERNARD SAVAIKO SENIOR METALS ANALYST WITH PAINEWEBBER SAID FUNDAMENTAL FACTORS FOR COPPER ARE GROWING INCREASINGLY BEARISH IF THE OUTLOOK FOR GLOBAL ECONOMIC GROWTH DOES NOT IMPROVE WE COULD SEE COPPER MOVE TO 9495 CENTS A POUND HE SAID HE NOTED THAT MANY NEW MINES WERE STARTING PRODUCTION IN NORTH AMERICA AND SOUTH AMERICA AT A TIME WHEN INDUSTRIAL DEMAND FOR COPPER WAS BEING HELD IN CHECK BY WORLDWIDE DEFLATION CHINESE PURCHASES WHICH HAD HELPED PROPEL COPPER FUTURES TO RECENT HIGHS ABOVE 108 A POUND HAVE NOW BEEN REPLACED BY SHORT POSITIONS OR BETS BY CHINESE OPERATORS THAT PRICES WILL FALL ANALYSTS NOTED ENERGY PETROLEUM FUTURES PLUNGED IN A TECHNICALLY DRIVEN SELLOFF MARKET PARTICIPANTS CONTINUED TO IGNORE THE GROWING TENSIONS BETWEEN IRAQ AND THE UNITED NATIONS AND LIGHT LOWSULFUR CRUDE OIL FOR FEBRUARY DELIVERY BROKE THROUGH 1850 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE THAT TRIGGERED ANOTHER SURGE IN SELL ORDERS THE FEBRUARY CRUDE CONTRACT SETTLED AT 1838 A BARREL DOWN 40 CENTS FOR THE DAY PETROLEUM PRODUCTS FOLLOWED CRUDE DOWN SETTING A NEW LIFEOFCONTRACT LOW FEBRUARY HEATING OIL WAS DOWN 091 CENT A GALLON TO 5263 CENTS GASOLINE FOR FEBRUARY DELIVERY DROPPED 105 CENTS A GALLON TO 5192 CENTS AFTER THE CLOSE OF FUTURES TRADING THE AMERICAN PETROLEUM INSTITUTE RELEASED ITS LATEST REPORT ON US OIL INVENTORIES WHICH SHOWED THAT GASOLINE INVENTORIES SURGED 54 MILLION BARRELS LAST WEEK INVENTORIES OF DISTILLATES WHICH INCLUDE HEATING OIL ALSO WERE UP BY 11 MILLION BARRELS BUT CRUDE OIL INVENTORIES DECLINED 12 MILLION BARRELS AND REFINERY OPERATIONS SLOWED SLIGHTLY 9301130106 930113 WHO'S NEWS CREDIT SUISSE OFFICIAL WIDMER IS NAMED CEO AT VOLKSBANK SPECIAL TO THE WALL STREET JOURNAL EUROPE ZURICH KURT WIDMER A MEMBER OF CREDIT SUISSE'S EXECUTIVE BOARD WAS NAMED CHIEF EXECUTIVE OFFICER AT SWISS VOLKSBANK EFFECTIVE IMMEDIATELY THE APPOINTMENT OF MR WIDMER FOLLOWS THE ANNOUNCEMENT LAST WEEK THAT CS HOLDING AG THE PARENT OF CREDIT SUISSE WILL TAKE OVER VOLKSBANK SWITZERLAND'S FIFTHLARGEST BANK MR WIDMER WILL BE JOINED BY ANOTHER CREDIT SUISSE EXECUTIVE GERHARD GASTPAR WHO WILL BECOME VOLKSBANK EXECUTIVE VICE PRESIDENT EFFECTIVE APRIL 1 MR GASTPAR HAS BEEN AT CREDIT SUISSE SINCE 1972 THE CREDIT SUISSEVOLKSBANK DEAL FOR BETWEEN 15 BILLION SWISS FRANCS AND 16 BILLION FRANCS 101 BILLION AND 107 BILLION IS THE LARGEST BANK ACQUISITION IN SWITZERLAND SINCE WORLD WAR II AND HIGHLIGHTS A CONSOLIDATION IN THE SWISS BANKING INDUSTRY THAT COULD SEE THE DISAPPEARANCE OF HUNDREDS OF THE COUNTRY'S NEARLY 600 BANKS MR WIDMER SUCCEEDS ROLF BEELER WHO IS RECOVERING FROM SURGERY AND HAS RESIGNED MR BEELER WILL REMAIN AT THE BANK AS AN EXECUTIVE VICE PRESIDENT AND WILL BE PROPOSED AS A FULLTIME VICE CHAIRMAN OF THE VOLKSBANK BOARD VOLKSBANK CHAIRMAN WALTER RUEGG WILL RESIGN AT THE NEXT VOLKSBANK SHAREHOLDERS' MEETING IN MARCH A SUCCESSOR TO MR RUEGG HASN'T BEEN NAMED 9301130103 930113 LETTERS TO THE EDITOR ELEPHANTMAN DISEASE' WAS LONG MISIDENTIFIED YOUR ARTICLE ON CRANIOFACIAL SURGEON IAN JACKSON LOOK OF LOVE AS HIS FACE IS MOLDED BOY FINDS HIS SURGEON BECOMING HIS FATHER NOV 13 PAGE ONE MISIDENTIFIES NEUROFIBROMATOSIS NF AS THE ELEPHANTMAN DISEASE THE CONFUSION DATES BACK TO THE DAYS WHEN IT WAS INCORRECTLY ASSUMED THAT THE ELEPHANT MAN THE GREAT ENGLISHMAN JOSEPH MERRICK HAD INDEED NEUROFIBROMATOSIS IN THE EARLY 1980S IT WAS HOWEVER ESTABLISHED THAT MR MERRICK HAD SUFFERED FROM A MUCH RARER DISEASE CALLED PROTEUS SYNDROME THE ASSOCIATION OF NEUROFIBROMATOSIS WITH MR MERRICK'S DISEASE ADDS A CONSIDERABLE AND UNNECESSARY EMOTIONAL BURDEN TO THE SUFFERING OF THE MORE THAN 100000 AMERICANS WHO ARE AFFECTED BY NF 9301130102 930113 TECHNOLOGY IN THE LAB TWOSTROKE CAR ENGINE GETS SECOND LOOK BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL WARREN MICH IN WHAT MAY BE THE MOST SOPHISTICATED GARAGE IN THE US TWO GENERAL MOTORS CORP ENGINEERS ARE LOOKING AT REALTIME READOUTS OF ENGINE PERFORMANCE ON A LAPTOP COMPUTER PLUGGED INTO A TWOSTROKE ENGINE THAT'S TWOSTROKE AS IN THE ENGINE OLDSMOBILE ABANDONED AT THE TURN OF THE CENTURY THE PUTPUT ENGINE EAST GERMANY USED TO POWER THE NOISY SMELLY TRABANT THE LOWTECHNOLOGY ENGINE USUALLY FOUND IN LAWNMOWERS AND MINIBIKES BUT THANKS TO DESIGN ADVANCES MADE IN THE MID1980S BY AUSTRALIA'S ORBITAL ENGINE COMPANY LTD GM AND SEVERAL OTHER AUTO MAKERS ARE TRYING TO BUILD TWOSTROKES THAT ARE AS SMOOTH AND CLEAN AS THE FOURSTROKES FOUND IN MOST CARS AND FAR MORE FUELEFFICIENT GM'S V6 TWOSTROKE GENERATES AN IMPRESSIVE 220 HORSEPOWER IN A SLEEK RED PONTIAC BONNEVILLE SEDAN BUT IT SOUNDS AS IF SOMEONE WERE TRYING TO PLAY PERCUSSION WITH TWO POWER DRILLS AND LIKE MOST TWOSTROKES IT BURNS UP OIL QUICKLY IT WILL FAIL IF OIL ISN'T ADDED AFTER 7500 MILES FOR ALL ITS PROBLEMS THE TWOSTROKE'S PROMISE IS EVIDENT AS SOON AS YOU GLANCE UNDER THE HOOD THE ENGINE IS SO SMALL THERE'S ENOUGH ROOM FOR A LARGE SUITCASE BASICALLY YOU'VE GOT THE FUEL ECONOMY OF A FOURCYLINDER ENGINE WITH THE POWER LEVEL OF AN EIGHTCYLINDER SAYS ROGER A HEIMBUCH THE EXECUTIVE ENGINEER WHO'S LEADING THE RESEARCH PROJECT IN GM'S TECH CENTER LABORATORY A TENTHOFAMILELONG GARAGE CRAMMED WITH CARS METAL SHOPS AND COMPUTERS FOR THE PAST THREE YEARS SINCE GM SIGNED A LICENSING AGREEMENT WITH ORBITAL MR HEIMBUCH AND PAUL E REINKE HAVE LED A SIGNIFICANT EFFORT TO DESIGN AND TEST TWOSTROKE ENGINES THAT MEANS BUILDING ENGINES IN THE TECH CENTER'S SHOP AND PUTTING THEM THROUGH THEIR PACES ON TEST TRACKS IT ALSO MEANS DRIVING HOME IN A TWOSTROKEPOWERED CAR TO SEE WHAT HAPPENS ON A COLD MICHIGAN MORNING MR HEIMBUCH WILL NOT SAY HOW MUCH GM IS SPENDING TO DEVELOP TWOSTROKE TECHNOLOGY BUT HE WILL SAY THAT IT'S SPENDING LESS THAN IT DID TO RESEARCH THE ROTARY ENGINE WHICH WAS ALL BUT ABANDONED AS AN ALTERNATIVE TO FOURSTROKES AFTER DECADES OF RESEARCH INSIDE THE PONTIAC SEDAN THE LAPTOP MONITORS THE AMOUNT OF FUEL PER CYLINDER AND THE FUEL RATE IN GRAMS PER SECOND AS THE ENGINE REVS UP WITH A STEADY CLATTER THE MONITOR IS NEEDED BECAUSE UNLIKE IN THE TRABANT EVERYTHING IS CONTROLLED ELECTRONICALLY WE'VE WRITTEN THOUSANDS OF PAGES OF COMPUTER CODE FOR THIS ENGINE MR HEIMBUCH SAYS USING COMPUTERDRIVEN ELECTRONIC CONTROLS ENGINEERS CAN TWEAK THE ENGINE ALTERING ITS PERFORMANCE FOR EXAMPLE BY RETARDING THE FIRING OF A SPARKPLUG A FEW MILLISECONDS TO DECREASE KNOCKING IT WAS COMPUTER TECHNOLOGY THAT PIQUED INTEREST IN THE TWOSTROKE IN 1983 ORBITAL THEN CALLED SARICH TECHNOLOGIES BEGAN TINKERING WITH THE IDEA OF USING SOPHISTICATED COMPUTER CONTROLS TO IMPROVE THE TWOSTROKE ENGINE TWOSTROKES ARE MUCH SIMPLER THAN CONVENTIONAL ENGINES WHICH USE VALVES AND FOUR PISTON STROKES TO GENERATE POWER THOSE STROKES BRING AIR AND GASOLINE INTO A CYLINDER COMPRESS IT AND BURN IT RELEASE POWER AND THEN EXPEL EXHAUST IN VALVELESS TWOSTROKES THE FUEL AND AIR ENTER THE CYLINDER AND BURN IN ONE STROKE AND POWER IS GENERATED AND EXHAUST IS RELEASED IN A SECOND STROKE BUT THE SIMPLICITY HAS A PRICE TRADITIONAL TWOSTROKE ENGINES DON'T ALWAYS BURN ALL THE FUEL WHICH IS A MIXTURE OF GASOLINE AND OIL THEY SOMETIMES MIX THE UNBURNED FUEL AND EXHAUST DUMPING THE FUEL OUT THE TAILPIPE ORBITAL DEVELOPED A COMPUTERCONTROLLED METHOD OF INJECTING FUEL DIRECTLY INTO THE CYLINDER WITHOUT VALVES THE PISTON ITSELF INSTEAD OF A VALVE CLOSES OFF THE EXHAUST PORT PREVENTING FUEL FROM BEING MIXED WITH THE EXHAUST ORBITAL LICENSED ITS TECHNOLOGY TO FORD MOTOR CO IN 1988 AND TO GM THE FOLLOWING YEAR MORE RECENTLY FIAT SPA AND VOLKSWAGEN AG HAVE SIGNED LICENSING AGREEMENTS CHRYSLER CORP TOYOTA MOTOR CO AND HONDA MOTOR CO ARE BUILDING TWOSTROKES WITHOUT ORBITAL SINCE IT SIGNED UP WITH ORBITAL GM HAS BEEN TRYING TO DISCOVER WHETHER IT CAN MAKE TWOSTROKES WORK AT FIRST WE HAD UNIDENTIFIED SEIZURES AND SHUTDOWNS SAYS MR REINKE THIS DOESN'T HAPPEN ANYMORE FOR THREE YEARS GM CONCENTRATED ON REDUCING EMISSIONS FROM THE ENGINE IT SUCCEEDED LARGELY BY PLAYING WITH THE PARAMETERS SAYS MR REINKE HE MEANS CHANGING THE DYNAMICS OF THE ENGINE EVERYTHING FROM THE AIRFUEL RATIO TO THE COMPRESSION TO GET A CLEANER BURN NOW GM IS FOCUSING ON TUNING AN EXHAUST SYSTEM TO REDUCE NOISE CUTTING DOWN THE AMOUNT OF OIL THE ENGINE NEEDS AND ON SUCH PROBLEMS AS EVEN ACCELERATION IN ITS TWOSTROKE ACCELERATION ISN'T LINKED DIRECTLY TO PRESSURE ON THE GAS PEDAL AND AN OPEN THROTTLE IT COMES FROM COMPUTER SOFTWARE IN FACT THE THROTTLE GOVERNING AIR INTAKE IN ALREADY AIRY TWOSTROKE COMBUSTION CHAMBERS MUST SOMETIMES BE CLOSED NOT OPENED TO ACCELERATE FINETUNING ENGINE CODES SO THE VEHICLE HAS THE RIGHT FEEL DURING ACCELERATION FOR EXAMPLE IS IMPORTANT IF IT IS TO BE ACCEPTED BY THE CONSUMER WE'RE GETTING TO THE STAGE WHERE WE HAVE TO DEMONSTRATE IT WITH BOWS AND WHISTLES SAYS MR REINKE DOES THAT MEAN TWOSTROKES ARE THE ENGINE OF THE FUTURE PATIENCE SAYS MR REINKE WE'VE BEEN WORKING A FEW YEARS ON THE TWOSTROKE HOW LONG HAVE THEY BEEN WORKING ON THE FOURSTROKE SINCE LATE LAST CENTURY 9301130101 930113 CREDIT MARKETS TREASURY BOND YIELD RISES TO 747 AS MARKET ABSORBS 65 BILLION OF CORPORATE MUNICIPAL DEBT BY TERENCE DONNELLY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CORPORATE AND MUNICIPAL TREASURERS FLOODED THE DEBT MARKETS YESTERDAY WITH MORE THAN 65 BILLION IN NEW BONDS INVESTOR APPETITES CONTINUED TO BE VORACIOUS ENOUGH TO DIGEST THE LARGE VOLUME OF NEW ISSUES THAT BEGAN LAST WEEK AND THAT SUGGESTS MANY CORPORATE AND MUNICIPAL TREASURERS BELIEVE INTEREST RATES WON'T GO ANY LOWER MEANWHILE PRICES OF TREASURY NOTES AND BILLS WERE DOWN LESS THAN 1/8 OF A POINT TO AS MUCH AS 3/8 THE TREASURY'S BENCHMARK 30YEAR BOND DROPPED 3/8 TO 101 21/32 FOR A YIELD OF 747 UP FROM 744 MONDAY ISSUERS BROUGHT OUT MORE THAN 11 BILLION OF NEW CORPORATE DEBT LAST WEEK AND THE CONTINUING ONSLAUGHT HASN'T PUT MUCH OF A DENT IN CORPORATE BOND PRICES IN THE SECONDARY MARKET A SIGN THAT DEMAND REMAINS STRONG FOR NEW CORPORATE ISSUES WHILE CORPORATE BONDS ENDED 1/8 TO 1/4 POINT LOWER YESTERDAY REFLECTING MODERATE WEAKNESS IN THE TREASURY MARKET SYNDICATE OFFICIALS SAID THE YIELD SPREAD BETWEEN NEW CORPORATE BONDS AND COMPARABLE TREASURYS HAS GENERALLY HELD STEADY WITH YIELDS ON SHORTMATURITY SECURITIES NARROWING THIS IS ONE INDICATOR OF STRONG DEMAND THERE'S STILL A GOOD TONE TO THE MARKET SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS FINANCIAL BOND FUND AS LONG AS RATES DON'T BACK UP LIKE THEY DID LAST WEEK AND DEALS ARE FAIRLY PRICED THE SUPPLY SHOULD CONTINUE JUNK BOND PRICES ENDED FLAT TO 1/8 OF A POINT HIGHER IN THIN TRADING MOST CHRYSLER CORP BONDS WERE HIGHER AFTER MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP DECIDED MONDAY TO RAISE THEIR RATINGS ON MUCH OF THE COMPANY'S DEBT INCLUDING SENIOR DEBT AND PREFERRED STOCK MOODY'S UPGRADED THE COMPANY'S SENIOR DEBT TWO NOTCHES TO BA2 FROM SINGLEB1 TRADERS SAID MOST ISSUES OF CHRYSLER AND CHRYSLER FINANCIAL CORP ENDED 1/2 TO 1 POINT HIGHER AFTER NEWS OF THE UPGRADES CHRYSLER'S 12 DEBENTURES MATURING IN 2015 ROSE 1/2 TO 108 1/2 MORE THAN 46 BILLION OF NEW CORPORATE BONDS WAS BROUGHT TO THE MARKET YESTERDAY ALONG WITH NEARLY 2 BILLION OF NEW MUNICIPAL BONDS THE VAST MAJORITY OF BOTH TOTALS HOWEVER CAME IN TWO ISSUES THAT HELD THE ATTENTION OF INVESTORS IN THE CORPORATE AND MUNICIPAL BOND MARKETS ONE A 3 BILLION ISSUE OF 10YEAR GLOBAL BONDS FROM THE CANADIAN PROVINCE OF ONTARIO WAS SNAPPED UP BY INVESTORS THE OTHER A 16 BILLION ISSUE OF MUNICIPAL BONDS FROM NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SAW STRONG DEMAND FOR BONDS WITH LONGTERM MATURITIES BUT WEAKER DEMAND FOR BONDS WITH SHORTTERM MATURITIES MONEY MANAGERS SAID THE ONTARIO ISSUE WAS THE LARGEST DOLLARDENOMINATED GLOBAL BOND OFFERING EVER THESE SECURITIES ARE GENERALLY SOLD IN OFFERINGS OF 1 BILLION OR MORE AND ARE OFTEN DENOMINATED IN DOLLARS THEY ARE DESIGNED TO BE TRADED IN MAJOR EUROPEAN NORTH AMERICAN AND ASIAN MARKETS YESTERDAY'S ISSUE WAS PRICED WITH A 7 3/8 COUPON AT 99693 TO YIELD 7419 AND QUICKLY SOLD OUT ACCORDING TO SYNDICATE OFFICIALS INVOLVED IN THE DEAL THE NONCALLABLE NOTES WERE PRICED AT 076 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE AT THE LOW END OF AN ANTICIPATED PRICE SPREAD BY LATE AFTERNOON THE ISSUE BEGAN TRADING IN THE SECONDARY MARKET AND ITS YIELD DROPPED TO 7389 AS ITS PRICE ROSE TO 99 7/8 A SIGN OF CONTINUED STRONG DEMAND ONTARIO DECIDED TO BOOST THE SIZE OF THE OFFERING ON MONDAY FROM A PLANNED 25 BILLION CITING STRONG WORLDWIDE DEMAND SYNDICATE OFFICIALS SAID INVESTOR INTEREST IN THE DEAL WAS BROADBASED TAKING IN PENSION FUNDS INSURANCE COMPANIES MUTUAL FUNDS AND MONEY MANAGERS ONTARIO FINANCE OFFICIALS CONFIRMED THAT MOST OF THE DEMAND WAS CENTERED IN NORTH AMERICA THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY STANDARD & POOR'S CORP SALOMON BROTHERS INC AND GOLDMAN SACHS & CO ARE JOINT LEAD MANAGERS THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY OFFERING WAS THE THIRD LARGEST MUNICIPAL BOND OFFERING EVER ACCORDING TO SECURITIES DATA CO AND SEEMED TO MEET STRONG DEMAND FOR ITS LONGERDATED BONDS THOUGH SOME MONEY MANAGERS SAID THAT ITS SHORTERDATED ISSUES DIDN'T DO AS WELL SOME MONEY MANAGERS EXPRESSED CONCERN ABOUT POTENTIAL CREDIT RATING PROBLEMS IN THE FUTURE FOR THE AGENCY THOUGH NONE SAID TROUBLE WAS IMMINENT OVER PROBLEMS WITH ONE OR TWO OF THE NUCLEAR REACTORS THE AGENCY OWNS BUT THOSE CONCERNS DIDN'T SEEM TO SWAY MOST INVESTORS YESTERDAY JOSEPH DEANE MANAGING DIRECTOR OF TAXEXEMPT FIXEDINCOME MANAGEMENT AT SHEARSON LEHMAN ADVISORS A UNIT OF SHEARSON LEHMAN BROTHERS SAID BONDS WITH MATURITIES OF 19 YEARS OR MORE ESPECIALLY THOSE THAT WERE INSURED WERE THE MOST ATTRACTIVE BECAUSE OF THEIR RELATIVELY LOW PRICES THE LONGER PORTION OF THE OFFERING WAS VERY ATTRACTIVELY PRICED SAID MR DEANE EVEN AFTER THE AGENCY DECIDED TO BOOST PRICES AND LOWER YIELDS FOR A NUMBER OF THE LONGERDATED PAPER AMID STRONG DEMAND AFTER LOWERING THE YIELDS BY 001 TO 004 PERCENTAGE POINT YIELDS RANGED FROM 385 FOR SECURITIES MATURING IN 1995 TO 650 FOR THOSE MATURING IN 2021 ACCORDING TO SMITH BARNEY HARRIS UPHAM & CO THE LEAD UNDERWRITER THE AGENCY MAY ALSO SELL THIS WEEK THE CALL RIGHTS FOR A NUMBER BONDS MATURING IN 2012 TO 2026 THE SALE OF CALL RIGHTS HAS BECOME A MORE PREVALENT DERIVATIVE IN THE MUNICIPAL BOND MARKET IN THE PAST FEW MONTHS BY SELLING THE RIGHTS AT A STEEP DISCOUNT TO THE FACE VALUE OF THE UNDERLYING BONDS ISSUERS CAN REDUCE THEIR YIELDS BUT MUST GIVE UP THEIR RIGHTS TO CALL THE BONDS AFTER 10 YEARS OR SO THE POWER AGENCY'S 57 MILLION OF DERIVATIVE SECURITIES CALLED STRUCTURED YIELD CURVE NOTES WERE SNAPPED UP BY MARKET PARTICIPANTS ACCORDING TO THE UNDERWRITERS UNTIL JAN 1 1997 THE YIELD CURVE NOTES WHICH MATURE IN 2013 WILL HAVE A YIELD TIED TO RATES ON AN INDEX OF SEVENDAY TAXEXEMPT VARIABLERATE DEMAND NOTES CALLED THE PSA MUNICIPAL SWAP INDEX AFTER THAT DATE THE YIELD WILL BE FIXED AT 6375 THE YIELD CURVE NOTES SOLD YESTERDAY WERE PRICED TO YIELD 6375 AND WILL REMAIN THERE UNLESS THE SWAP INDEX EXCEEDS 350 BEFORE JAN 1 1997 IN THAT CASE THE YIELD ON THE NOTES WILL RISE BY AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE INDEX AND 350 UP TO A MAXIMUM YIELD OF 12 THE RATE ON THE SWAP INDEX FOR THE WEEK ENDED JAN 6 WAS 164 THE OFFERING WAS INITIALLY SOLD SEPT 22 BUT THE PRICING WAS CANCELED BECAUSE OF A MARKET SLUMP THAT DAY AND THE BONDS WERE PUT ON HOLD MOST OF THE LONGERDATED INSURED BONDS WERE RATED TRIPLEA BY MAJOR RATING CONCERNS WHILE THE UNINSURED BALANCE OF THE OFFERINGS WAS RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P MANY IN THE MARKET ANTICIPATED A FLOOD OF NEW MUNICIPAL BOND OFFERINGS IF YESTERDAY'S NORTH CAROLINA OFFERING WAS A RESOUNDING SUCCESS BUT YESTERDAY SOME IN THE MARKET THOUGHT THE OUTLOOK FOR NEW ISSUANCE HAD DIMMED SOMEWHAT ACCORDING TO MR DEANE OF SHEARSON ADVISORS YESTERDAY'S WAS THE LAST BIG DEAL YOU'RE GOING TO SEE FOR A WHILE HE SAID THE NUMBER OF NEW DEALS IS GOING TO BE FAIRLY MODERATE IN THE NEXT FEW MONTHS PRICES OF NOTES AND BONDS ENDED AS MUCH AS 3/8 OF A POINT LOWER WITH THE MARKET TAKING A LATE HIT FROM DATA SUGGESTING A BETTER PACE OF CONSUMER SPENDING TRADING WAS MOSTLY INFLUENCED BY ACTIVITY IN THE OTHER FIXEDINCOME MARKETS WE CONTINUE TO BE IN A SITUATION WHERE MOST OF THE ACTIVITY IN THE TREASURY MARKET SEEMS TO BE DRIVEN BY ACTIVITY IN SISTER MARKETS WHETHER IT'S CORPORATE OR MUNICIPALS SAID STEVEN WOOD DIRECTOR OF FINANCIAL MARKETS RESEARCH AT BANK OF AMERICA IN SAN FRANCISCO THE 10YEAR NOTE DROPPED NEARLY 1/4 POINT TO 97 21/32 FOR A YIELD OF 669 UP FROM 666 ON MONDAY THE FIVEYEAR NOTE ENDED AT 100 9/32 DOWN LESS THAN 1/8 FOR A YIELD OF 592 UP FROM 590 AN EARLY GOOD TONE TO THE MARKET FADED AT MIDMORNING WITH TRADERS REPORTING A SPURT OF SELLING IN INTERMEDIATE SECURITIES SOME DEALERS SAID THE SELLING WAS FROM PARTICIPANTS MOVING OUT OF TREASURYS INTO THE 3 BILLION ONTARIO PROVINCE ISSUE LATE IN THE SESSION PRICES DIPPED TO THEIR LOWS ON A STRONGERTHANEXPECTED JOHNSON REDBOOK SERVICE RETAIL SALES REPORT JOHNSON REDBOOK AN AFFILIATE OF LYNCH JONES & RYAN INC REPORTED THAT CHAIN AND DEPARTMENT STORE SALES WERE UP A SOLID 24 IN THE FIRST WEEK OF JANUARY FROM THE DECEMBER AVERAGE THE GAIN SURPRISED ANALYSTS WHO HAD BEEN EXPECTING SALES TO FALL OFF MORE SHARPLY AFTER THE STRONG FINISH TO THE HOLIDAY SEASON TODAY WILL PROVIDE A BIT MORE FOR THE TREASURY MARKET TO SINK ITS TEETH INTO WITH ACTIVITY LIKELY TO CENTER ON THE AUCTION OF 975 BILLION IN SEVENYEAR NOTES DEALERS ARE A BIT WARY OF THE ISSUE AS IT TYPICALLY DOESN'T DRAW MUCH INVESTOR INTEREST IN ADDITION SAID JOEL KAZIS A MANAGING DIRECTOR AT UBS SECURITIES INC THE SEVENYEAR AUCTIONS HAVE THE HABIT OF CHANGING THE DIRECTION OF THE MARKET WHICH UP UNTIL NOW HAS BEEN POSITIVE IN WHENISSUED TRADING LATE YESTERDAY THE SEVENYEAR NOTE WAS YIELDING 637 MORTGAGE SECURITIES ENDED WITH MODERATE LOSSES BUT RESUMED THE LATEST TREND OF OUTPERFORMING COMPARABLE TREASURYS FREDDIE MAC UNVEILED ITS GOLD MACS OR MODIFIABLE AND COMBINABLE STRIPPED MORTGAGE SECURITIES PROGRAM THIS NEW PROGRAM AN ENHANCEMENT TO FREDDIE MAC'S EXISTING STRIPS PROGRAM FOR THE FIRST TIME OFFERS INVESTORS FLEXIBILITY IN ADJUSTING COUPONS ON STRIP TRANSACTIONS WHICH ARE SECURITIES THAT HAVE BEEN SPLIT INTO INTERESTONLY AND PRINCIPALONLY SEGMENTS ACCORDING TO FREDDIE MAC AND PRUDENTIAL SECURITIES INC THE ISSUE'S LEAD MANAGER GOLD MACS MADE THEIR DEBUT WITH A 16 BILLION SERIES 146 DEAL THAT CONSISTED OF AN INTERESTONLY STRIPS CLASS A PRINCIPALONLY STRIPS CLASS AND 40 OTHER CLASSES WITH A MIX OF COUPONS RANGING FROM 05 TO 20 IN 05 COUPON INCREMENTS THE ISSUE WAS BACKED BY FREDDIE MAC GOLD 7 1/2 30YEAR MORTGAGE SECURITIES CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9301130100 930113 WHO'S NEWS IMPERIAL CHEMICAL INDUSTRIES PLC IMPERIAL CHEMICAL INDUSTRIES PLC LONDON KEITH WILLARD 51 YEARS OLD WAS NAMED CHAIRMAN OF ZENECA NORTH AMERICA A WILMINGTON DEL DIVISION OF THIS COMPANY'S RECENTLY FORMED ZENECA LTD BIOSCIENCE UNIT MR WILLARD WHOSE APPOINTMENT IS EFFECTIVE MARCH 1 HAD BEEN PRESIDENT OF ICI CANADA IN TORONTO EI BRAWNER 49 SUCCEEDS MR WILLARD MR BRAWNER WAS VICE PRESIDENT OF OPERATIONS AT THE ICI EXPLOSIVES UNIT IN TORONTO 9301130099 930113 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK JOHN DEITCHMAN AND CHRISTINE LASALA WERE NAMED DIRECTORS AT THIS CLOSELY HELD INSURANCE BROKER INCREASING THE BOARD TO 35 MEMBERS MR DEITCHMAN 43 YEARS OLD IS SENIOR VICE PRESIDENT AND HEAD OF CASUALTY PRACTICE AT JOHNSON & HIGGINS AND MS LASALA 42 IS NEW YORK DEPUTY BRANCH MANAGER AND EXECUTIVE VICE PRESIDENT OF THE COMPANY'S NEW YORK DIVISION 9301130098 930113 WHO'S NEWS OLIN CORP'S JOHNSTONE GRIFFIN YOHE COMPRISE CHIEF EXECUTIVE OFFICE STAMFORD CONN OLIN CORP FORMED AN OFFICE OF THE CHIEF EXECUTIVE INCLUDING CHAIRMAN AND CHIEF EXECUTIVE JOHN W JOHNSTONE AND TWO NEWLY NAMED VICE CHAIRMEN DONALD W GRIFFIN AND ROBERT L YOHE THE VICE CHAIRMEN HAVE BEEN EXECUTIVE VICE PRESIDENTS SINCE 1987 AND DIRECTORS SINCE 1990 ALL DIVISIONS AND INTERNATIONAL OPERATIONS WILL REPORT TO MR GRIFFIN 55 YEARS OLD VICE CHAIRMAN FOR OPERATIONS MR YOHE 56 VICE CHAIRMAN FOR CORPORATE RESOURCES WILL HEAD CORPORATE STAFF AND STRATEGY PREVIOUSLY THE THREE MEN SHARED RESPONSIBILITY FOR CORPORATE STAFF MR YOHE RAN THE COMPANY'S CHEMICALS BUSINESS MR GRIFFIN HEADED ITS METALS DEFENSE AND AMMUNITION UNITS AS CHIEF EXECUTIVE MR JOHNSTONE 60 WILL PROVIDE LEADERSHIP IN CUSTOMER SATISFACTION TOTAL QUALITY MANAGEMENT AND WORK FORCE DIVERSITY 9301130096 930113 YOUR MONEY MATTERS HOW SUPREME COURT'S HOMEOFFICE RULING AFFECTS YOU BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IT JUST GOT TOUGHER FOR SOME PEOPLE TO CUT THEIR TAXES BY WRITING OFF THE COSTS OF A HOME OFFICE THE US SUPREME COURT YESTERDAY STRUCK DOWN A 2500 DEDUCTION TAKEN BY AN ANESTHESIOLOGIST WHO USED THE SPARE BEDROOM OF HIS MCLEAN VA HOME TO KEEP RECORDS AND TELEPHONE COLLEAGUES AND PATIENTS IN ITS RULING THE HIGH COURT SAID IT WASN'T ENOUGH THAT WORK DONE IN THE HOME OFFICE WAS ESSENTIAL TO THE DOCTOR'S BUSINESS TO BE DEDUCTIBLE IT SAID A HOME OFFICE ORDINARILY MUST BE A TAXPAYER'S MOST IMPORTANT PLACE OF BUSINESS OR ONE USED REGULARLY TO MEET WITH CLIENTS THE RULING IS EXPECTED TO AFFECT THOUSANDS OF TAXPAYERS AND RAISE A HOST OF QUESTIONS AND VERY FEW OF THEM ARE LIKELY TO BE ANSWERED FAVORABLY FOR THE TAXPAYER SAYS TERRENCE PERRIS OF SQUIRE SANDERS & DEMSPEY A CLEVELAND LAW FIRM HERE'S A LOOK AT SOME OF THE MAJOR QUESTIONS THAT ARE LIKELY TO BE ON THE MINDS OF TAXPAYERS WITH HOME OFFICES AND THE ANSWERS FROM TAX EXPERTS FOLLOWING YESTERDAY'S SUPREME COURT DECISION WHO IS AFFECTED BY THE RULING PEOPLE WHO DO SOME OF THEIR WORK AT HOME BUT TYPICALLY PROVIDE THEIR SERVICES AT OTHER LOCATIONS MAY FIND THEY NO LONGER QUALIFY FOR A HOMEOFFICE DEDUCTION THIS APPLIES BOTH TO THE SELFEMPLOYED AND TO PEOPLE WHOSE EMPLOYERS DON'T PROVIDE THEM WITH AN OFFICE CONTRACTORS WILL HAVE VIRTUALLY NO CHANCE UNLESS THEY MEET WITH CLIENTS REGULARLY IN THEIR HOMES SAYS MR PERRIS OTHERS AFFECTED MIGHT INCLUDE HOME DECORATORS CATERERS COMPUTER REPAIRERS HOUSE PAINTERS CONSULTANTS AND PERSONAL TRAINERS AND DOCTORS THE CASE IN QUESTION INVOLVED AN ANESTHESIOLOGIST WHO SAW PATIENTS AT THREE AREA HOSPITALS FOR 30 TO 35 HOURS A WEEK BUT KEPT RECORDS AND TELEPHONED PATIENTS AND COLLEAGUES FROM HIS HOME 10 OR 15 HOURS A WEEK THE COURT SAID THIS CASE FAILED TO MEET THE CRITERIA FOR BEING A PRINCIPAL PLACE OF BUSINESS WHAT ARE THE CRITERIA FOR A PRINCIPAL PLACE OF BUSINESS THE COURT SAID THERE ARE TWO PRIMARY CONSIDERATIONS THE RELATIVE IMPORTANCE OF THE ACTIVITIES PERFORMED AT EACH LOCATION AND THE TIME SPENT AT EACH PLACE IN OTHER WORDS THE ANESTHESIOLOGIST'S JOB WAS TO ADMINISTER ANESTHESIA NOT BILL PATIENTS MOREOVER HE SPENT FAR LESS TIME AT HIS HOME OFFICE THAN ELSEWHERE IS THERE SOME WAY TO QUALIFY FOR THE HOMEOFFICE DEDUCTION IF I DON'T MEET THOSE CRITERIA YES PEOPLE WHOSE HOME OFFICE IS NOT THEIR PRINCIPAL PLACE OF BUSINESS CAN STILL CLAIM A DEDUCTION IF THEY REGULARLY SEE PATIENTS CLIENTS OR CUSTOMERS THERE IN THE NORMAL COURSE OF BUSINESS THAT MEANS THAT A PEDIATRICIAN WHO REGULARLY SEES SICK CHILDREN AT HIS HOME WOULD QUALIFY EVEN THOUGH HE MAINTAINS A SEPARATE OFFICE THAT IS USED MORE FREQUENTLY BUT A BUILDING CONTRACTOR WHO USED HIS OFFICE ONLY FOR BILLING AND PREPARING PROPOSALS WOULD NOT BE ALLOWED TO TAKE THE DEDUCTION WHAT IF MY SITUATION ISN'T CLEARCUT SOME PEOPLE MAY BE ABLE TO ARGUE THAT THEY ARE ENTITLED TO A HOMEOFFICE DEDUCTION BECAUSE THEY DO MOST OF THEIR WORK IN THEIR HOME OFFICE LOOK AT SOMEONE WHO MIGHT BE A FULLTIME MEMBER OF A NUMBER OF BOARDS OF DIRECTORS SAYS STEPHEN R CORRICK A TAX PARTNER WITH ARTHUR ANDERSEN WHILE THIS PERSON'S SERVICES ARE DELIVERED AWAY FROM THE HOME OFFICE HE OR SHE MAY SPEND A MAJORITY OF TIME THERE PREPARING FOR MEETINGS MAKING CONFERENCE CALLS AND PREPARING MEMOS BUT THE TAXPAYER WOULD HAVE TO BE ABLE TO PROVE THAT POINT BY DOCUMENTING WORKING HOURS AND KEEPING GOOD RECORDS MR CORRICK SAYS OTHER PEOPLE MIGHT WANT TO START USING THEIR OFFICE TO MEET REGULARLY WITH PATIENTS OR CLIENTS HOWEVER AS IN THE CASE OF THE ANESTHESIOLOGIST THIS OPTION ISN'T AVAILABLE TO EVERYONE CAN'T I JUST ARGUE THAT I HAVE NO OTHER PRINCIPAL PLACE OF BUSINESS THE SUPREME COURT DECISION YESTERDAY MADE IT CLEAR THAT NOT EVERYONE HAS A PRINCIPAL PLACE OF BUSINESS IF IT COMES TO THAT TOUGH MR PERRIS SAYS IN SUMMARIZING THE RULING'S VIEW ON THIS MATTER THE TAXPAYER HE SAYS BEARS THE BURDEN OF PROOF WHAT IF I ALREADY TOOK A DEDUCTION AND NOW DON'T QUALIFY YOU PROBABLY OUGHT TO CONSIDER AMENDING YOUR RETURNS SAYS MR CORRICK IF THE IRS DOESN'T GET A HOLD OF YOU FIRST THANKS TO A SPECIAL FORM FOR HOMEOFFICE DEDUCTIONS IT WILL BE FAIRLY EASY FOR THE INTERNAL REVENUE SERVICE TO TRACK DOWN PEOPLE WHO TOOK A DEDUCTION THEY SHOULDN'T HAVE UNDER THE NEW SUPREME COURT RULING THE IRS MIGHT EVEN SEND OUT A FORM LETTER ADVISING TAXPAYERS OF THE NEW RULING AND INVITING THEM TO AMEND THEIR RETURNS WITHOUT PENALTY WHAT IF I DON'T AMEND MY RETURNS IT'S UNLIKELY THAT SOMEONE WOULD BE ASSESSED A PENALTY FOR MISFILING BUT YOU CERTAINLY WOULD PAY INTEREST SAYS THOMAS P OCHSENSCHLAGER A PARTNER AT ACCOUNTANTS GRANT THORNTON IN WASHINGTON AND BECAUSE THE INTEREST CLOCK KEEPS RUNNING AND INTEREST PAYMENTS AREN'T DEDUCTIBLE IT MAY BE IN YOUR BEST INTEREST TO CURTAIL THAT INTEREST AS SOON AS POSSIBLE DOES THE RULING AFFECT HOMEOFFICE DEDUCTIONS FOR THE REST OF US NO SELFEMPLOYED PEOPLE WHO HAVE ONLY ONE PLACE OF BUSINESS WON'T BE AFFECTED AT ALL FREELANCE WRITERS COULD TAKE IT BEFORE THE RULING AND THEY CAN TAKE IT AFTER SAYS MR OCHSENSCHLAGER BUT THIS DOESN'T MEAN THAT THE HOMEOFFICE ISSUE HAS BEEN ENTIRELY SETTLED IN ANNOUNCING ITS RULING YESTERDAY THE SUPREME COURT SAID IT WAS NOT CREATING ANY CLEARCUT RULE OR TEST INSTEAD IT SAID EACH CASE MUST BE JUDGED ON ITS OWN MERIT THAT'S CERTAIN TO MEAN THERE WILL BE LOTS OF DEBATE ON HOMEOFFICE DEDUCTIONS IN THE FUTURE 9301130095 930113 PROSECUTORS FILE BROADER CHARGES AGAINST MOZER BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DAY AFTER THE COLLAPSE OF PAUL MOZER'S PLEA AGREEMENT WITH THE GOVERNMENT FEDERAL PROSECUTORS FILED A BROADER INDICTMENT AGAINST THE FORMER HEAD OF THE GOVERNMENT TRADING DESK AT SALOMON BROTHERS INC THE INDICTMENT HANDED UP BY A MANHATTAN FEDERAL GRAND JURY CHARGES MR MOZER WITH FOUR FELONY COUNTS ALL INVOLVING HIS ACTIVITIES IN THE US TREASURY'S NOTE AUCTION ON FEB 21 1992 MR MOZER IS THE CENTRAL FIGURE IN SALOMON'S TREASURYAUCTION BIDDING SCANDAL THE INDICTMENT INCLUDES ONE COUNT OF SECURITIES FRAUD TWO COUNTS OF MAKING FALSE STATEMENTS AND ONE COUNT OF PREPARING FALSE BOOKS AND RECORDS UNDER A PLEA AGREEMENT FILED LAST WEEK MR MOZER WAS ONLY TO HAVE ADMITTED TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO TREASURY OFFICIALS IN THE FEB 21 AUCTION THAT ARRANGEMENT COULD HAVE ENABLED MR MOZER TO AVOID ANY PRISON TIME BUT THE PLEA AGREEMENT UNRAVELED MONDAY IN A DISPUTE OVER WHETHER THE FORMER TRADER STILL COULD FACE ADDITIONAL CRIMINAL CHARGES FOR ANTITRUST VIOLATIONS MR MOZER'S ATTORNEY STANLEY S ARKIN SAID THE NEW INDICTMENT WAS OUTRAGEOUS CONDUCT BY THE PROSECUTORS AND SAID MR MOZER WILL FIGHT THE CHARGES IN COURT MONDAY MR ARKIN SAID THAT CURRENT AND FORMER MEMBERS OF THE MANHATTAN US ATTORNEY'S OFFICE HAD PROMISED MR MOZER PROTECTION FROM ANTITRUST PROSECUTION WHICH IS BEING HANDLED BY THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION BUT THE US ATTORNEY'S OFFICE SAID THAT NO SUCH PROMISES WERE MADE WHEN MR ARKIN REFUSED TO CONCEDE THAT POINT PROSECUTORS TOLD THE JUDGE OVERSEEING THE CASE THAT THEY WOULD NO LONGER NEGOTIATE ON THE PLEA AND WOULD FILE NEW CHARGES PROSECUTORS HAD SAID PREVIOUSLY THAT THEY HAD ALREADY PRESENTED THE ENTIRE CASE CONCERNING MR MOZER TO A GRAND JURY SALOMON BROTHERS IS A UNIT OF SALOMON INC THE INDICTMENT ADDS TWO NEW COUNTS ALLEGING THAT MR MOZER VIOLATED SECURITIES LAWS THOSE NEW CHARGES CARRY GREATER POTENTIAL PENALTIES THAT THE TWO FALSESTATEMENT VIOLATIONS CONTAINED IN THE PLEA AGREEMENT THE INDICTMENT ALSO CHANGES THE SENTENCING GUIDELINES LEVEL THAT MR MOZER IS LIKELY TO FACE IF HE IS CONVICTED THE INDICTMENT FOR INSTANCE SAYS THAT MR MOZER PLANNED THE ALLEGED FRAUD AND CONCEALED IT UNDER THE GUIDELINES SUCH ALLEGATIONS WOULD LIKELY REQUIRE THE JUDGE TO INCREASE THE SENTENCE SIMILAR LANGUAGE WAS TONED DOWN IN THE INFORMATION THAT ACCOMPANIED THE PLEA AGREEMENT THE MORE IMPORTANT SENTENCING ISSUE HOWEVER IS HOW MUCH OF A LOSS MR MOZER'S ALLEGED CONDUCT CAUSED THAT ISSUE WAS LEFT UNSETTLED UNDER THE PLEA AGREEMENT ALTHOUGH MR ARKIN HAS SAID HIS CLIENT'S ACTIONS CAUSED NO LOSSES GERARD LYNCH A PROFESSOR AT COLUMBIA LAW SCHOOL WHO WAS A MEMBER OF THE US ATTORNEY'S OFFICE IN NEW YORK SAID A CONVICTION ON THE SECURITIESLAW CHARGES ALSO WOULD BE PARTICULARLY HELPFUL TO THE SECURITIES AND EXCHANGE COMMISSION IN ITS CIVIL LAWSUIT AGAINST MR MOZER THE SEC HAS ACCUSED MR MOZER OF FALSIFYING RECORDS IN BIDDING AT EIGHT TREASURY AUCTIONS MR MOZER HAS DENIED THE ALLEGATIONS IN COURT PAPERS MR ARKIN SAID THE GOVERNMENT'S DECISION TO WITHDRAW THE PLEA AGREEMENT AMOUNTS TO FORCING HIS CLIENT TO FORGO THE BENEFIT OF THE BARGAIN EMBODIED IN THE PLEA AGREEMENT SIMPLY BECAUSE HE REASONABLY DISPUTES THE US ATTORNEY'S OFFICE'S BELATED INTERPRETATION MR ARKIN ADDED THAT THE INJUSTICE OF WITHDRAWING THE PLEA DEAL IS COMPOUNDED BY THE FACT THAT THE COURT AND THE PUBLIC AT LARGE HAVE ALREADY BEEN INFORMED THAT MOZER INTENDS TO ENTER A GUILTY PLEA SOMETHING THAT HAS CREATED IRREVERSIBLE PREJUDICE TO HIM BY FORECLOSING THE POSSIBILITY OF A FAIR TRIAL 9301130094 930113 WHO'S NEWS COLTEC INDUSTRIES INC COLTEC INDUSTRIES INC NEW YORK TWO GROUP PRESIDENTS WERE NAMED TO HEAD SEVERAL OF THE AEROSPACE BUSINESSES AT THIS AEROSPACE AUTOMOTIVE AND INDUSTRIAL PRODUCTS AND MANUFACTURING CONCERN PAUL R KUHN 51 YEARS OLD WILL HEAD THE TWO MAIN ENGINE PARTS BUSINESSES AND ALSO WAS NAMED PRESIDENT OF ONE OF THE BUSINESSES CHANDLER EVANS PABLO PRIETO 53 WILL HEAD THE THREE LANDING GEAR BUSINESSES MR KUHN PREVIOUSLY WAS PRESIDENT OF THE COMPANY'S MENASCO AEROSYSTEMS DIVISION MR PRIETO RETAINS HIS POSITION AS PRESIDENT OF THE MENASCO AEROSPACE DIVISION 9301130093 930113 RULE OF LAW AN ATTORNEY GENERAL QUAYLE COULD LOVE BY TERRY EASTLAND WHEN CLARENCE THOMAS WAS NAMED TO THE SUPREME COURT BEN HOOKS THEN EXECUTIVE DIRECTOR OF THE NAACP SAID HE WAS GLAD THAT AT LEAST THE NOMINEE WAS BLACK IF NOT HIS KIND OF BLACK MEANING AN IDEOLOGICAL LIBERAL LEFTWING WOMEN'S GROUPS MUST FEEL MUCH THE SAME WAY ABOUT PRESIDENTELECT CLINTON'S CHOICE OF ZOE BAIRD AS ATTORNEY GENERAL MS BAIRD HAS NOT MADE IT TO THE TOP AT THE TENDER AGE OF 40 BY NETWORKING THE FEMALE LEFT AND MAJORING IN ITS PROABORTION AND CIVIL RIGHTS CAUSES SHE MAY SYMPATHIZE WITH THOSE CAUSES BUT SHE HAS PUBLICLY SUNG THE PRAISES OF FEDERALISM GENERALLY SUPPORTED THE BUSHQUAYLE CIVIL JUSTICE REFORM PROJECT SUGGESTED THAT THERE ARE IMPORTANT DIFFERENCES BETWEEN MEN AND WOMEN AND EVEN KNOWS THAT THE CONSTITUTION INCLUDES A TAKINGS CLAUSE AS MS BAIRD PREPARES FOR HER CONFIRMATION HEARING NEXT WEEK IT IS NOTABLE THAT HER PRINCIPAL CRITICS ARE FOUND ON THE LEFT NOT THE RIGHT VICE PRESIDENT DAN QUAYLE'S CHIEF OF STAFF WILLIAM KRISTOL DECLARES HER A FIRSTRATE NOMINEE PRIVATELY SOME CONSERVATIVES FEAR THAT MS BAIRD IS A STEALTH APPOINTEE AND WILL DO THE LEFT'S BIDDING OR MORE LIKELY ALLOW IT TO BE DONE FOR THE RECORD LET IT BE NOTED THAT ZOE BAIRD IS A DEMOCRAT HAVING RECEIVED BACHELOR'S AND LAW DEGREES FROM BERKELEY MS BAIRD CLERKED FOR A FEDERAL JUDGE BEFORE JOINING THE CARTER JUSTICE DEPARTMENT'S OFFICE OF LEGAL COUNSEL OLC SHE SO IMPRESSED WHITE HOUSE COUNSEL LLOYD CUTLER THAT HE HIRED HER AS AN ASSOCIATE SHE THEN WORKED IN THE WASHINGTON OFFICE OF O'MELVENY AND MYERS WHERE SHE CAME TO KNOW WILLIAM COLEMAN AND WARREN CHRISTOPHER AND MADE PARTNER IN 1986 MARRIED THAT YEAR TO YALE LAW PROFESSOR PAUL GEWIRTZ SHE WAS HIRED BY GENERAL ELECTRIC AS ITS COUNSELOR IN 1990 SHE BECAME SENIOR VICE PRESIDENT AND GENERAL COUNSEL FOR AETNA LIFE AND CASUALTY IN CHARGE OF 120 LAWYERS AND A BUDGET OF 90 MILLION MS BAIRD WHO WILL TAKE A 350000 PAY CUT HAS A THREEYEAROLD SON MS BAIRD'S CAREER DEMONSTRATES HER LEGAL INTERESTS AT OLC SHE WORKED ON EXECUTIVE POWER AND SEPARATIONOFPOWERS MATTERS CONTRIBUTING TO THE DEVELOPMENT OF THE ADMINISTRATION'S POSITION IN INS V CHADHA THE LEGISLATIVE VETO CASE INHERITED BY THE REAGAN ADMINISTRATION THE SUPREME COURT STRUCK DOWN THE VETO IN 1983 AT O'MELVENY AND MYERS MS BAIRD ASSISTED MR COLEMAN ON THE BOB JONES UNIVERSITY CASE IN WHICH THE REAGAN ADMINISTRATION IN A STRATEGIC BLUNDER REVERSED NIXONERA POLICY DENYING TAXEXEMPT STATUS TO RACIALLY DISCRIMINATORY PRIVATE SCHOOLS OF EQUAL NOTE IS HER WORK AGAIN WITH MR COLEMAN IN GARCIA V SAN ANTONIO METROPOLITAN TRANSIT AUTHORITY 1985 A LEADING FEDERALISM CASE O'MELVENY AND MYERS REPRESENTED THE PUBLIC TRANSIT AGENCIES IN A LOSING EFFORT AS THE COURT HELD THAT THERE ARE NO CONSTITUTIONAL LIMITS ON CONGRESS'S AUTHORITY TO APPLY MINIMUM WAGE AND OVERTIME COMPENSATION PROVISIONS OF THE FAIR LABOR STANDARD ACT TO STATE AND LOCAL GOVERNMENT EMPLOYEES IN A LAW REVIEW ARTICLE MS BAIRD WROTE THAT GARCIA WAS WRONGLY DECIDED PENNING PROSE WORTHY OF JUSTICE ANTONIN SCALIA SHE WROTE THAT CONGRESS SHOULD EXPRESSLY STATE ITS INTENTION TO PREEMPT A SPECIFIC FIELD AND QUESTIONED WHETHER FEDERAL REGULATIONS NOT EXPRESSLY REQUIRED BY STATUTE MAY OVERRIDE CONFLICTING STATE LAW THAT IMPLICATES SOVEREIGN STATE INTERESTS GOING FURTHER THAN ANY REAGAN OR BUSH LAWYER HAS SHE WROTE I HAVE THOUGHT FOR SOME TIME THAT CONGRESS IS RIPE FOR A CHALLENGE THAT IT HAS EXCEEDED ITS AUTHORITY TO DELEGATE BY GIVING THE EXECUTIVE BRANCH LEGISLATIVE FUNCTION GIVEN REMARKS LIKE THESE MS BAIRD IF CONFIRMED AS ATTORNEY GENERAL COULD GIVE SURPRISING MEANING TO THE TERM NEW DEMOCRAT DITTO IF SHE PRESSES FOR STRONGER ENFORCEMENT OF THE TAKINGS CLAUSE THE BASIS OF A LAWSUIT SHE FILED AGAINST MASSACHUSETTS WHEN IT THREATENED TO PREVENT AETNA FROM DOING BUSINESS IN THAT STATE AT GENERAL ELECTRIC AND AETNA MS BAIRD TOOK AN INTEREST IN CIVIL JUSTICE REFORM ARGUING THAT BILLING SHOULD BE DONE NOT BY THE HOUR BUT BY THE VALUE OF THE JOB LAST YEAR MS BAIRD BECAME ONE OF THE FEW DEMOCRATS IN THE COUNTRY TO SAY A NICE WORD ABOUT DAN QUAYLE THE VICE PRESIDENT HAS MOVED TORT REFORM TO A LEVEL OF VISIBILITY AND CREDIBILITY THAT IT REALLY HADN'T HAD FOR YEARS MS BAIRD'S SOLIDARITY WITH MR QUAYLE'S CAUSE HAS PROVOKED THE IRE OF THE NADERITE LEFT THE TRIAL LAWYERS' GUILD A BIG CONTRIBUTOR TO THE CLINTON CAMPAIGN HAS BEEN COOL TOWARD HER NOMINATION AT JUSTICE MS BAIRD WILL BE MR CLINTON'S PRINCIPAL ADVISER ON JUDICIAL NOMINATIONS SHE WILL ALSO OVERSEE AMONG 33 OTHER COMPONENTS THE ANTITRUST CIVIL RIGHTS AND ENVIRONMENT DIVISIONS HISTORICALLY VENUES OF CONTROVERSY THE DEPARTMENT NOW IS MORE THAN DOUBLE THE SIZE OF THE ONE SHE ONCE WORKED IN WHILE SHE HAS MANAGERIAL EXPERIENCE IT IS A FAIR QUESTION WHETHER ANY ATTORNEY GENERAL CAN EFFECTIVELY MANAGE THE GROWING COLOSSUS THIS WILL BE A BIG CHALLENGE AS WILL MANAGEMENT OF THE CRIMINALLAW ENFORCEMENT EFFORT WHICH ABSORBS THE BULK OF THE BUDGET MS BAIRD COMES TO THIS AREA AS A ROOKIE HAVING NO EXPERIENCE AT ALL IN CRIMINAL LAW BUT HERE SHE MUST DO WELL FOR BILL CLINTON HAS GIVEN TOP PRIORITY TO LAW AND ORDER ISSUES PERHAPS THE BIGGEST CHALLENGE FACING MS BAIRD WHO IN A 1981 OPED ARTICLE LECTURED RONALD REAGAN'S FIRST ATTORNEY GENERAL ON THIS SUBJECT WILL BE MAINTAINING THE INTEGRITY OF THE DEPARTMENT ESPECIALLY IN A ONEPARTY TOWN MS BAIRD COULD BE ASKED TO LIGHTEN UP ON CURRENT CRIMINAL INVESTIGATIONS OF PROMINENT CONGRESSIONAL DEMOCRATS SUCH AS REP DAN ROSTENKOWSKI OR TO STICK IT CRIMINALLY TO REPUBLICANS NOW OUT OF POWER OVER SUCH MATTERS AS BNL OR TO LOOK THE OTHER WAY IF IRANCONTRA COUNSEL LAWRENCE WALSH STRIKES OFF ON ANOTHER OF HIS CRUSADES ALSO IF THE LEFTWING LAWYERS NOW DOMINATING THE TRANSITION AT JUSTICE ARE GIVEN KEY JOBS UNDER MS BAIRD SHE MIGHT FIND HERSELF IN MAJOR DISTRACTING FIGHTS THE LAST THING NEEDED BY MS BAIRD WHO PRIDES HERSELF ON BEING A STRATEGIC THINKER ARE LAWYERS WHO WANT TO TURN BACK THE CLOCK ON CIVIL RIGHTS TO 1980 WHEN THE CIVIL RIGHTS DIVISION ROUTINELY INCLUDED NUMERICAL GOALS IN TITLE VII CONSENT DECREES AND SOUGHT BUSING AS A REMEDY FOR SCHOOL DESEGREGATION OR LAWYERS WHO ARGUE THAT THE CONSTITUTION PROTECTS THE RIGHT TO WELFARE TO KEEP THE DEPARTMENT FROM BEING PLUNGED INTO PARTISAN POLITICS MS BAIRD WOULD DO WELL TO RECRUIT SOME NONWASHINGTON MODERATES FOR PRINCIPAL JOBS SUCH AS AKHIL AMAR AND STEPHEN CARTER OF YALE LAW SCHOOL AND MARTIN REDISH OF NORTHWESTERN LAW SCHOOL AND SHE HAD BETTER DO IT SOON AS ATTORNEY GENERAL WILLIAM FRENCH SMITH WAS FOND OF SAYING THE JOB OF AG IS LIKE BEING A RECEIVER IN A JAVELIN COMPETITION MR EASTLAND IS A FELLOW AT THE ETHICS AND PUBLIC POLICY CENTER IN WASHINGTON 9301130092 930113 STUDENTS IN US SHOW IMPROVEMENT IN MATHEMATICS BY CATHY TROST STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NATIONAL ASSESSMENT SHOWED BETTER PERFORMANCE BY US STUDENTS IN MATHEMATICS THOUGH THERE IS MUCH MORE ROOM FOR IMPROVEMENT THE REPORT YESTERDAY BY THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS A FEDERAL STUDENTMONITORING PROJECT THAT ASSESSES STUDENT PROFICIENCY IN MATH AND OTHER AREAS ESTIMATED THAT OVERALL AVERAGE MATH PROFICIENCY SCORES INCREASED THE EQUIVALENT OF A HALFGRADE FOR STUDENTS IN THE FOURTH EIGHTH AND 12TH GRADES ABOUT 26000 STUDENTS IN THOSE GRADES WERE TESTED LAST YEAR AND THE PRELIMINARY DATA WERE COMPARED WITH 1990 TEST RESULTS ACCORDING TO THE REPORT 61 OF STUDENTS IN FOURTH GRADE WERE ESTIMATED TO BE AT OR ABOVE THE BASIC LEVEL OF PERFORMANCE REFLECTING PARTIAL MASTERY OF FUNDAMENTAL MATH KNOWLEDGE AND SKILLS COMPARED WITH 54 IN 1990 AT THE SAME TIME 63 OF EIGHTHGRADERS WERE AT OR ABOVE THAT BASIC LEVEL COMPARED WITH 58 IN 1990 AS WELL AS 64 OF 12TH GRADERS COMPARED WITH 59 IN 1990 BUT ONLY 18 OF FOURTHGRADERS 25 OF EIGHTH GRADERS AND 16 OF 12TH GRADERS WERE AT THE SOCALLED PROFICIENT LEVEL INDICATING SOLID ACADEMIC PERFORMANCE THAT'S WHAT STUDENTS SHOULD BE DOING BUT ONLY ONEFIFTH OF THE KIDS IN THIS COUNTRY ARE DOING THAT WORK SAID EMERSON ELLIOTT THE EDUCATION DEPARTMENT'S COMMISSIONER OF EDUCATION STATISTICS A MUCH SMALLER FRACTION OF EACH GRADE WAS AT THE ADVANCED OR SUPERIOR LEVEL THUS THOUGH OVERALL PERFORMANCE WAS UP NOT ENOUGH KIDS ARE PERFORMING WELL MR ELLIOTT SAID THERE WAS ALSO A SIGNIFICANT DECLINE IN THE AVERAGE MATH PROFICIENCY OF EIGHTHGRADE STUDENTS IN DISADVANTAGED URBAN AREAS THE TEST GIVEN TO STUDENTS LAST YEAR WAS MORE RIGOROUS THAN THE ONE GIVEN IN 1990 WITH MORE OPENENDED ITEMS AND FEWER MULTIPLECHOICE THE ASSESSMENT ALSO WAS BASED ON NEW ACHIEVEMENT LEVELS DEVISED BY NAEP'S POLICYMAKING BOARD ESTIMATING WHAT STUDENTS SHOULD BE ABLE TO DO AT DIFFERENT LEVELS OF PROFICIENCY CRITICS CALLED THE ACHIEVEMENT LEVELS CONFUSING AND SAID THE RESULTS SHOULD BE INTERPRETED CAUTIOUSLY 9301130091 930113 OVERSEAS INDIANS SHOW WAY TO HARMONY BY JOEL KOTKIN INDIA'S VIOLENT TUMULT HAS RAISED ONCE AGAIN THE QUESTION OF ITS FUTURE IN THE POSTCOLD WAR WORLD WITH THE FAILURE OF NEHRUITE SOCIALISM INDIA SORELY NEEDS NOT ONLY CAPITAL AND TECHNICAL ASSISTANCE BUT A NEW KIND OF SECULAR IDEAL THAT WILL INSPIRE IT TO DEVELOP A COMPETITIVE ECONOMY IN THE DECADE TO COME LIKE THE OVERSEAS CHINESE NOW TRANSFORMING THE MAINLAND THE ROUGHLY 20 MILLION EXPATRIATE INDIANS UP FROM A MERE FIVE MILLION THREE DECADES AGO CONSTITUTE A POWERFUL FORCE FOR THE SHIFT OF THEIR HOMELAND FROM A SOCIALIST BACKWATER TO A STRONG RAPIDLY GROWING ECONOMY THESE OVERSEAS INDIANS HAVE PERFORMED WELL IN COMMERCE TECHNOLOGY AND THE PROFESSIONS IN VIRTUALLY EVERY COUNTRY WHERE THEY HAVE SETTLED EVEN IN XENOPHOBIC JAPAN IN THE UNITED KINGDOM THEY HAVE MANAGED TO SCALE THE CLASS BARRIERS MORE QUICKLY THAN VIRTUALLY EVERY OTHER MAJOR ETHNIC GROUP INCLUDING THE ANGLOSAXONS THEMSELVES INDIAN AND PAKISTANI MALES IN BRITAIN HAVE A 60 HIGHER RATE OF SELFEMPLOYMENT THAN THEIR WHITE COUNTERPARTS AND A 300 HIGHER RATE THAN OTHER NONWHITE IMMIGRANTS WORLDWIDE ACCORDING TO NEW JERSEY INVESTMENT BANKER PRAKASH SHAH INDIANS HAVE ACCUMULATED ROUGHLY 100 BILLION IN REAL ESTATE MUCH OF IT IN PRIME LOCATIONS IN CALIFORNIA BRITAIN AND THE NEW YORK AREA IN THE US THE ROUGHLY ONE MILLION INDIANS ARGUABLY CONSTITUTE THE BESTEDUCATED OF ALL ASIAN IMMIGRANT GROUPS IN THE 1980S ALONE THE NUMBER OF INDIAN STUDENTS STUDYING IN THE US QUADRUPLED TO MORE THAN 26000 MANY OF THEM IN THE SCIENCES AND ENGINEERING THESE GRADUATES HAVE BECOME PARTICULARLY PROMINENT IN SILICON VALLEY WHICH HAS SPAWNED MORE THAN 100 INDIANBORN MILLIONAIRES INCLUDING FOUNDERS OF SUCH KEY FIRMS AS SUN MICROSYSTEMS THESE NEARLY 20 MILLION OVERSEAS INDIANS THE INDIAN GLOBAL TRIBE SEEM TO HAVE LARGELY OVERCOME THE INTENSE ETHNIC AND RACIAL ANTIPATHIES THAT DIVIDE THEIR COUNTERPARTS BACK HOME PERSONALLY WE REALLY HAVE NO PROBLEM WITH THE SIKHS OR HINDUS OBSERVES MOHAMMED KHOKAR A PAKISTANI WHO RUNS A SMALL TRADING FIRM IN THE GRIM BRITISH INDUSTRIAL CITY OF SHEFFIELD WITH HIS SIKH PARTNER ON THE PERSONAL LEVEL WE GET HERE TO AN AREA WHERE MOST OF THE PEOPLE ARE DIFFERENT AND WHAT GETS US TOGETHER THE FOOD THE LANGUAGE THE WAY OF DRESSING IS BASICALLY THE SAME IN CONTRAST TO THE CHAOS AND MAYHEM IN PLACES LIKE BOMBAY THERE HAVE BEEN FEW DISTURBANCES IN SUCH KEY DIASPORA COMMUNITIES AS NEW YORK SAN FRANCISCO LONDON HONG KONG OR SINGAPORE WHERE MUSLIMS HINDUS AND SRI LANKANS OFTEN SHARE COMMON CULTURAL RESOURCES NEWSPAPERS AND POLITICAL INSTITUTIONS THIS BUSINESS OF BREAKING DOWN IN RELIGIOUS TRIBES IS SIMPLY NONSENSE TO MOST PEOPLE HERE EXPLAINS PRAKASH CHANDRA PRESIDENT OF THE 1000 MEMBER SILICON VALLEY INDIAN PROFESSIONALS ASSOCIATION MR CHANDRA POINTS TO FIRMS SUCH AS MYLEX CORP A LEADING PC BOARD MANUFACTURER WHOSE CEO AKRAM CHOWDRY PAKISTANI MUSLIM SUPERVISES A LARGELY HINDU TECHNICAL STAFF MYLEX'S BOARDS LARGELY DESIGNED IN INDIA ARE MANUFACTURED BY THE USUAL MULTIHUED WORKFORCE COMMON TO SAN JOSE LIKE MANY IMMIGRANTS FROM THE SUBCONTINENT MR CHOWDRY BLAMES MUCH OF THE CURRENT INTERETHNIC STRIFE ON CHRONIC ECONOMIC MISMANAGEMENT MR CHOWDRY SEES INDIA'S TWO MILLION STRONG COMMUNITY OF ENGINEERS AND SCIENTISTS THE WORLD'S SECOND LARGEST COMMUNITY OF ENGLISHSPEAKING TECHNOLOGISTS AS THE SUBCONTINENT'S EQUIVALENT OF OIL THE RAW MATERIAL THAT COULD SHAPE A BRIGHT FUTURE FOR THE SUBCONTINENT IF YOU CAN CHANGE THE PROBLEMS YOU HAVE WITH THE GOVERNMENT YOU'D HAVE MONEY THERE MR CHOWDRY WHOSE FIRMS'S BACKING COMES LARGELY FROM THE MUSLIM MIDDLE EAST EXPLAINED IF THE INDIANS HAVE MONEY THEY'D START TO FORGET THE THESE PROBLEMS ABOUT HINDUS OR MUSLIMS THEY COULD DOMINATE THE COMPUTER INDUSTRY SUCH ENTREPRENEURS HOPE INDIA WILL CONTINUE THE ECONOMIC REFORM PROCESS NOW UNDER WAY WITH THE EASING OF INVESTMENT AND IMPORT RESTRICTIONS MANY LEADING FIGURES IN THE INDIAN BUSINESS DIASPORA SUCH AS GULU LALVANI OF CONSUMER ELECTRONICS MAKER BINATONE AND THE HONG KONGBASED HARILELA FAMILY HAVE MADE MAJOR INVESTMENTS IN INDIA INCLUDING THE SETTING UP OF NEW FACTORIES BUT EVEN MORE IMPORTANT THAN CAPITAL AND TECHNOLOGY MAY BE THE ATTITUDES TOWARD ETHNICITY AND BUSINESS MANAGEMENT THAT THE EXPATRIATE INDIANS BRING WITH THEM AFTER A DECADE WORKING AS AN ENGINEER IN CALIFORNIA ANUPAM SARANWALA RETURNED HOME LAST YEAR TO TAKE CARE OF HIS AGING PARENTS AND HELP ESTABLISH A NEW FACTORY FOR SILICON VALLEY TECHNOLOGIES A STARTUP FIRM FOUNDED BY ANIL AND SUCHETA KAPURIA A SAN JOSEBASED HUSBANDANDWIFE TEAM BANKROLLED BY THE HARILELAS AND OTHER LEADING INDIAN TRADING FAMILIES AT SILICON VALLEY TECHNOLOGY'S NEW FACTORY RISING AMID THE DUST AND SQUALOR OF BHANGEL A SMALL VILLAGE IN RURAL UTTAR PRADESH MR SARANWALA AND HIS COLLABORATORS ARE DEVELOPING NOT ONLY NEW PRODUCTS BUT A NEW COSMOPOLITAN SPIRIT AMONG THEIR EMPLOYEES FOR ONE THING HE SEEKS TO BREAK DOWN THE TRADITIONAL NATIONALIST MENTALITY OF INDIANS INSTEAD HE HAS HIS INDIAN ENGINEERS AND EMPLOYEES WORKING CLOSELY WITH A CHINESE MANUFACTURING EXPERT BROUGHT IN FROM A HARILELABACKED FIRM IN HONG KONG TO TEACH THEM HOW TO USE THE LATEST JAPANESE AND AMERICAN INDUSTRIAL PROCESSES WE CAN TRANSFER THE RESULTSORIENTED CULTURE OF CALIFORNIA TO THE TIMEORIENTED CULTURE OF INDIA HE CLAIMS AS HE WALKS THROUGH THE CROWDED PREINDUSTRIAL STREETS OF BHANGEL INDIA HAS THE PEOPLE AND THE TALENT WHAT THEY NEED IS THE OPPORTUNITY TO PERFORM WE KNOW THE INDIANS IN AMERICA AND ELSEWHERE HAVE DONE IT WE KNOW THAT MODEL WORKS THEN LET INDIA TAKE OFF INEVITABLY IN ITS OWN DIRECTION OF COURSE THE MASSIVE PROBLEMS FACING INDIA WITH ITS HUGE IMPOVERISHED POPULATION ITS LEGACY OF MONUMENTAL MISRULE AND CORRUPTION MAKE IT EASY TO DISMISS THE LIKES OF MR SARANWALA AS HOPELESS DREAMERS PUSHING AGAINST CENTURIES OF SOCIAL AND CULTURAL INERTIA YET THE RECENT HISTORY OF OTHER GLOBAL TRIBES NOTABLY THE CHINESE HAS REVEALED THE ENORMOUS POSSIBILITIES FOR CHANGE UNLEASHED BY THE EXPERIENCE OF MIGRATION AND THE DEVELOPMENT OF A TRULY GLOBAL ECONOMY WITH SATELLITE DISHES TELEPHONES AND JET AIRCRAFT ACCELERATING THE PROCESS THE DISTANCE BETWEEN SILICON VALLEY AND BHANGEL CAN BE TELESCOPED IN AN UNPRECEDENTED MANNER GIVEN THE NEW OPPORTUNITIES FOR FUTURE TRANSFORMATIONS EVEN AMONG THE POOREST AND LEAST COSMOPOLITAN OF PEOPLES INDIA'S REVIVAL LED BY ITS WAYWARD SONS COULD YET BECOME A POWERFUL REALITY MR KOTKIN IS THE AUTHOR OF TRIBES HOW RACE RELIGION AND IDENTITY DETERMINE SUCCESS IN THE NEW GLOBAL ECONOMY RANDOM HOUSE 9301130090 930113 CREDIT RATINGS GREAT ATLANTIC & PACIFIC TEA CO NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATING ON ABOUT 300 MILLION OF THIS GROCERY CHAIN'S SENIOR DEBT TO TRIPLEBMINUS FROM TRIPLEBPLUS AND ITS COMMERCIAL PAPER RATING TO SINGLEA3 FROM SINGLEA2 THE RATINGS AGENCY CITED THE COMPANY'S RECENT WEAKERTHANEXPECTED OPERATING PERFORMANCE A&P'S SALES HAVE DECLINED FOR THE LAST FIVE QUARTERS AND PROFITABILITY HAS BEEN DOWN SHARPLY S&P SAID THAT ALTHOUGH OTHER SUPERMARKET CHAINS ARE ALSO EXPERIENCING POOR SALES A&P'S SHOWING HAS BEEN WORSE THAN MOST THE RATINGS AGENCY SAID THAT WHILE A&P HAS MODERATE DEBT AND ADEQUATE CASH FLOW S&P DOESN'T EXPECT TO SEE A SIGNIFICANT INCREASE IN A&P'S PROFITABILITY IN THE NEAR FUTURE A&P IS 52OWNED BY TENGELMANN GROUP OF GERMANY 9301130089 930113 WHO'S NEWS CATALINA MARKETING CORP CATALINA MARKETING CORP ANAHEIM CALIF TOMMY GREER THE 61YEAROLD CHIEF EXECUTIVE OFFICER OF THIS ELECTRONIC MARKETING SERVICES CONCERN WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN HE SUCCEEDS MICHAEL R O'BRIEN A FOUNDER OF THE COMPANY WHO RESIGNED AS CHAIRMAN AND A DIRECTOR MR O'BRIEN'S DEPARTURE EFFECTIVE JAN 25 WAS PART OF A PLANNED MANAGEMENT SUCCESSION THE COMPANY SAID IN A STATEMENT MR O'BRIEN 49 SAID HE HAD ACHIEVED HIS OBJECTIVE TO SEE CATALINA BECOME A SUCCESSFUL PUBLIC COMPANY AND THAT THE TIME IS NOW RIGHT FOR ME TO PURSUE MY OTHER INTERESTS MR O'BRIEN WAS NAMED CHAIRMAN EMERITUS AND WILL BECOME A CONSULTANT ON LONGTERM STRATEGIC PROJECTS CATALINA SAID HIS RESIGNATION FROM THE BOARD REDUCES ITS SIZE TO EIGHT MEMBERS CATALINA WENT PUBLIC IN MARCH 9301130086 930113 INTERPROVINCIAL PIPE COASTAL CORP TO SEEK PERMISSION ON PIPELINE EDMONTON ALBERTA INTERPROVINCIAL PIPE LINE INC AND COASTAL CORP'S ANR PIPELINE CO UNIT SAID THEY PLAN TO SEEK REGULATORY PERMISSION TO PROCEED WITH THE CREATION OF A NEW NATURAL GAS PIPELINE FROM THE US BORDER INTO SOUTHWESTERN ONTARIO THE 58 MILLION PROJECT INVOLVES THE CONVERSION OF AN EXISTING CRUDE OIL PIPELINE TO CARRY NATURAL GAS THE CONSTRUCTION OF A SMALL LATERAL PIPELINE AND THE ADDITION OF COMPRESSION THE PARTNERS SAID THE PIPELINE WILL ALLOW CONSUMERS GAS CO ONE OF CANADA'S LARGEST GAS DISTRIBUTION CONCERNS TO ACCESS NATURAL GAS SUPPLIES FROM ANR'S SYSTEM IN MICHIGAN AS WELL AS STORAGE CAPACITY IN SOUTHWESTERN ONTARIO INTERPROVINCIAL AND COASTAL HAVE CUT BACK THEIR PLANS FOR THE GAS PIPELINE PROJECT SINCE FIRST UNVEILING THE VENTURE IN AUGUST 1991 THEN THE PARTNERS PROPOSED CONVERTING MOST OF INTERPROVINCIAL'S EXISTING CRUDE OIL PIPELINE RUNNING FROM SARNIA ONTARIO TO MONTREAL TO A GAS TRANSPORTATION SYSTEM WITH A CAPACITY OF 400 MILLION CUBIC FEET DAILY THE NEW PROPOSALS CALL FOR THE LINE TO REACH ITS PEAK CAPACITY OF 230 MILLION CUBIC FEET DAILY IN LATE 1996 AFTER COMPRESSION FACILITIES ARE ADDED AND LEAVE A PART OF THE EXISTING CRUDE OIL PIPELINE OPEN THE PIPELINE AS A WHOLE HAS BEEN RUNNING AT ABOUT 20 TO 30 CAPACITY IN RECENT YEARS SOURCES SAID INTERPROVINCIAL IS AN OIL PIPELINE CONCERN BASED IN EDMONTON ALBERTA ANR BASED IN DETROIT IS A UNIT OF HOUSTONBASED COASTAL CORP 9301130085 930113 DOCTOR FILES LAWSUIT AGAINST SYRINGE FIRM OVER HIV INFECTION NEW YORK AP A DOCTOR WHO CLAIMS SHE WAS INFECTED WITH THE AIDS VIRUS IN 1986 WHEN SHE PRICKED HER FINGER WITH A NEEDLE SUED BECTON DICKINSON & CO THE MAKER OF THE SYRINGE SEEKING 11 BILLION IN DAMAGES THE WOMAN WHO CHARGED THAT THE SYRINGE WAS UNSAFE SAID SHE BECAME INFECTED WHEN SHE DREW A BLOOD SAMPLE FROM A PATIENT IN JULY 1986 DURING HER FIRST MONTH OF AN INTERNSHIP AND RESIDENCY TRAINING PROGRAM AT A NEW YORK HOSPITAL THE PRODUCT REQUIRED ITS USER TO RECAP THE SYRINGE SO THE BLOODFILLED SAMPLE COULD BE TAKEN TO A HOSPITAL LABORATORY ACCORDING TO THE LAWSUIT FILED IN US DISTRICT COURT IN MANHATTAN THE WOMAN ALLEGED THAT THE SYRINGES WERE GROSSLY DEFECTIVE BECAUSE THEIR DESIGN FORCED THEM TO BE RECAPPED THE COMPANY AND LAWYERS FOR THE DOCTOR TRIED UNSUCCESSFULLY TO NEGOTIATE A SETTLEMENT OVER THE PAST 30 MONTHS ACCORDING TO THE LAWSUIT THE SUIT SEEKS 100 MILLION IN COMPENSATORY DAMAGES AND 1 BILLION IN PUNITIVE DAMAGES LESLIE GORDON FAGEN AN ATTORNEY FOR BECTON DICKINSON FRANKLIN LAKES NJ SAID WE HAVE REVIEWED THE PLAINTIFF'S FILING AND THE COMPANY DOES NOT BELIEVE THAT IT BEARS ANY RESPONSIBILITY FOR THE TRAGEDY ALLEGED IN THE COMPLAINT 9301130084 930113 TECHNOLOGY APPLE COMPUTER NAMES NAGEL TO FILL MACINTOSH POST VACATED BY HEINEN BY CHARLES MCCOY AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL CUPERTINO CALIF APPLE COMPUTER INC NAMED DAVID C NAGEL A SENIOR VICE PRESIDENT IN CHARGE OF DEVELOPING ADVANCED NEW HARDWARE AND SOFTWARE TECHNOLOGIES TO HEAD UP SOFTWARE DESIGN FOR ITS FLAGSHIP MACINTOSH PRODUCT LINE MR NAGEL 47 YEARS OLD SUCCEEDS ROGER HEINEN A SILICON VALLEY WIZARD WHOSE DEPARTURE LAST WEEK FROM APPLE CAUSED A STIR PARTICULARLY BECAUSE HE LEFT TO HEAD UP RIVAL MICROSOFT CORP'S DATABASE DEVELOPMENT OPERATIONS MR HEINEN HAD BEEN ONE OF APPLE'S TOP TECHNICAL PEOPLE AS WELL AS ONE OF ITS MOST VISIBLE EXECUTIVES HIS DEPARTURE WAS SOMETHING OF A BLOW TO APPLE'S PRESTIGE ESPECIALLY AS IT CAME DURING THE MACWORLD COMPUTER CONFERENCE A SHOWCASE FOR APPLE PRODUCTS MR HEINEN'S SCHEDULED KEYNOTE SPEECH AT THE CONFERENCE HAD TO BE CANCELED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY APPLE CLOSED AT 6150 DOWN 2625 ANALYSTS SAID THE SLIDE SEEMED TO BE RELATED TO GENERAL MARKET WEAKNESS IN THE HIGHTECH SECTOR AND CONCERNS ABOUT APPLE'S ABILITY TO MEET DEMAND FOR CERTAIN PRODUCTS MR NAGEL IS REGARDED AS ONE OF APPLE CHIEF EXECUTIVE OFFICER JOHN SCULLY'S MOST TRUSTED AIDES HE RETAINS HIS CURRENT RESPONSIBILITIES FOR NEW HARDWARE AND SOFTWARE TECHNOLOGIES IN ADDITION TO ASSUMING MR HEINEN'S FORMER JOB MR NAGEL'S NEW TITLE IS SENIOR VICE PRESIDENT AND GENERAL MANAGER ADVANCED TECHNOLOGY GROUP AND MACINTOSH SOFTWARE ARCHITECTURE DIVISION MR HEINEN'S DEPARTURE IS STILL SENDING RIPPLES THROUGH THE INDUSTRY HE HASN'T SAID WHY HE LEFT AND WASN'T AVAILABLE FOR COMMENT YESTERDAY HIS DEFECTION RENEWED THE PERIODIC SPECULATION AMONG SOME COMPUTER PUNDITS OVER WHETHER THE MACINTOSH IS BECOMING A TECHNOLOGICAL DEAD END APPLE DOES FACE LONGTERM CHALLENGES IN DIFFERENTIATING ITS MAINSTAY MACINTOSH FROM OTHER COMPUTERS PARTICULARLY IN THE FACE OF THE BROAD INDUSTRY TREND TOWARD SMALLER FASTER MORE POWERFUL AND MORE UNIFORM MACHINES HOWEVER INDUSTRY INSIDERS INCLUDING SOME EXECUTIVES WHO KNOW MR HEINEN SAY THEY BELIEVE HE JUMPED SHIP FOR PERSONAL REASONS NOT BECAUSE OF ANY DOUBTS ABOUT MACINTOSH'S FUTURE APPLE INSISTS AND MANY INDUSTRY ANALYSTS AGREE THAT IT IS WELL ON THE WAY TO TECHNOLOGICAL ADVANCEMENTS THAT WILL KEEP MACINTOSH OR SOME FORM OF IT IN THE DESKTOP COMPUTING VANGUARD FOR INSTANCE ITS TALIGENT JOINT VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORP IS AHEAD OF SCHEDULE IN ITS EFFORT TO INTRODUCE AN OPERATING SYSTEM THAT CAN RUN DIVERSE PROGRAMS ON DIFFERENT TYPES OF MACHINES SOMETHING THAT CAN'T BE DONE WITH PRESENT TECHNOLOGY OPERATING SYSTEMS CONTROL THE BASIC FUNCTIONS OF COMPUTERS IN AN INTERVIEW YESTERDAY MR NAGEL SCOFFED AT ANY SUGGESTION THAT MACINTOSH IS IN TROUBLE IT WOULD BE A PRETTY BIZARRE ARGUMENT TO MAKE WHEN YOU LOOK AT OUR SALES AND REVENUE FOR THE MAC MR NAGEL SAID THE MAC IS EXTREMELY HEALTHY SOME PEOPLE WHO KNOW MR HEINEN SAY THEY THINK HE LEFT APPLE SIMPLY BECAUSE HE LIKES LIVING IN THE PACIFIC NORTHWEST HAVING SPENT MORE THAN 10 YEARS IN THAT AREA BEFORE COMING TO CALIFORNIA MICROSOFT IS BASED IN REDMOND WASH NEAR SEATTLE MR HEINEN IS ALSO A CLOSE FRIEND OF DAVID CUTLER A TOP MICROSOFT ENGINEER INVOLVED WITH ITS HIGHPROFILE WINDOWS NT OPERATING PROJECT MR CUTLER AND MR HEINEN WORKED TOGETHER AT DIGITAL EQUIPMENT CORP FOR YEARS MOREOVER MR HEINEN'S MICROSOFT DEAL IS BELIEVED TO BE EXTREMELY LUCRATIVE ALTHOUGH DETAILS HAVEN'T BEEN DISCLOSED 9301130083 930113 WHO'S NEWS DIGITAL EQUIPMENT TAPS CHIEF EXECUTIVE OF ZENITH DATA TO HEAD ITS PC BUSINESS BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL DIGITAL EQUIPMENT CORP HIRED ENRICO PESATORI PRESIDENT AND CHIEF EXECUTIVE OF PERSONALCOMPUTER MAKER ZENITH DATA SYSTEMS TO RUN ITS OWN PC BUSINESS THE APPOINTMENT EFFECTIVE FEB 1 FILLS ONE OF DIGITAL'S MOST IMPORTANT EXECUTIVE POSITIONS WITH A HIGHPROFILE OUTSIDER THE PC UNIT IS ONE OF NINE BUSINESS UNITS CREATED BY THE NEW CHIEF EXECUTIVE ROBERT B PALMER IN A DEC 22 REORGANIZATION MR PESATORI 52 YEARS OLD WILL BE A VICE PRESIDENT AND GENERAL MANAGER OF ONE OF DIGITAL'S FASTESTGROWING BUSINESSES AND WILL REPORT DIRECTLY TO MR PALMER ALTHOUGH THE MAYNARD MASS COMPUTER MAKER WAS A LATE ENTRY TO THE HUGE PC MARKET THE UNIT REACHED SALES OF 500 MILLION LAST YEAR AND IS ON TRACK TO MORE THAN DOUBLE THAT FIGURE THIS YEAR A SPOKESWOMAN SAID WHILE STRATEGICALLY IMPORTANT THE PC UNIT IS STILL DWARFED BY DIGITAL'S SERVICE AND MINICOMPUTER BUSINESSES AND ISN'TYET PROFITABLE THE COMPANY REPORTED TOTAL REVENUE OF 1393 BILLION FOR THE FISCAL YEAR ENDED JUNE 30 ANALYSTS APPLAUDED THE MOVE STEVE MILUNOVICH OF MORGAN STANLEY & CO SAID THAT DESPITE ITS RAPID GROWTH DIGITAL STILL ISN'T VERY VISIBLE IN PCS SO HIRING SOMEONE OF THIS STATURE IS A BIG HELP THE PERSONAL COMPUTER BUSINESS IS A VERY ROUGH PLACE TO BE RIGHT NOW AND DIGITAL HAS FOUND AN INDUSTRY VETERAN WHO HAS FOUGHT THOSE BATTLES ALREADY SAID ENZO TORRESI PRESIDENT AND CHIEF EXECUTIVE OF COMPUTER MAKER NETFRAME SYSTEMS INC MILPITAS CALIF MR PESATORI WAS PRESIDENT OF ZENITH DATA A USBASED UNIT OF FRANCE'S CIE DES MACHINES BULL FOR TWO YEARS THE SUBSIDIARY WHICH HAD WORLDWIDE SALES OF ABOUT 1 BILLION LAST YEAR HAD LOSSES IN 1991 AND IS EXPECTED TO JUST BREAK EVEN IN 1992 BUT MR PESATORI IS CREDITED WITH AGGRESSIVELY MARKETING ZENITH DATA PCS IN THE FACE OF A BITTER PRICE WAR THROUGH A MASSIVE ADVERTISING CAMPAIGN AND A COMPLETE REDESIGN OF THE COMPANY'S COMPUTER LINE THAT TARGETED CORPORATE PC BUYERS ZENITH PREVIOUSLY HAD FOCUSED ON FEDERAL GOVERNMENT SALES BUT SUFFERED AS SPENDING IN THAT SECTOR SAGGED THE COMPANY CURRENTLY IS FIGHTING TO SAVE A 7403 MILLION AIR FORCE COMPUTER CONTRACT THAT WAS THROWN INTO DOUBT LAST MONTH AFTER PROTESTS BY LOSING BIDDERS MR PESATORI ALSO MOVED ZENITH DATA INTO MAILORDER COMPUTER SALES IN COMPETITION WITH SMALLER NIMBLER MAILORDER MERCHANTS SUCH AS DELL COMPUTER CORP AND COMPUADD COMPUTER CORP DIGITAL LAST YEAR ALSO SET UP ITS OWN MAILORDER BUSINESS WHICH IT SAYS IS BOOMING BEFORE JOINING ZENITH DATA MR PESATORI SPENT 21 YEARS WITH ING C OLIVETTI & CO IN A NUMBER OF MANAGEMENT AND TECHNICAL JOBS INCLUDING RUNNING RESEARCH MANUFACTURING AND MARKETING FOR ALL DATAPROCESSING AND MICROCOMPUTER PRODUCTS HE ALSO SERVED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF OLIVETTI'S NORTH AMERICA UNIT ANALYSTS SAY DIGITAL ISN'T LIKELY TO MAKE MONEY IN THE PC BUSINESS UNTIL IT CAN SHARPLY BOOST VOLUME BUT THE COMPANY WHICH LONG RELIED ON ITS LARGER VAX COMPUTERS EVEN AS PCS GREW TO DOMINATE THE INDUSTRY HAS NO CHOICE ANALYSTS SAID THEY LEARNED THAT THEY CAN'T AFFORD TO IGNORE THE DESKTOP SAID JAY STEVENS OF DEAN WITTER NOW IT HAS THE MOMENTUM TO BE A REAL SUCCESS STORY SEPARATELY BULL YESTERDAY NAMED JACQUES NOELS PRESIDENT AND CHIEF EXECUTIVE OF ZENITH DATA SUCCEEDING MR PESATORI MR NOELS 52 YEARS OLD WAS PRESIDENT OF NOKIA CONSUMER ELECTRONICS AND PREVIOUSLY HELD POSTS WITH TEXAS INSTRUMENTS INC AND THOMSON SA 9301130082 930113 INTERNATIONAL JAPAN'S BANKERS SEEM TO WORK ON LOAN BAILOUT HOMEFINANCE COMPANIES SYSTEM'S WEAKEST LINK MAY GET FRESH SUPPORT BY MICHAEL WILLIAMS AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPAN'S BANKERS AND FINANCIAL AUTHORITIES APPEAR TO BE WORKING OUT MEASURES TO BAIL OUT THE NATION'S HOUSINGLOAN COMPANIES THE WEAKEST LINK IN JAPAN'S TOTTERING BANKING SYSTEM FINANCE MINISTRY OFFICIALS AND THE HOUSINGLOAN COMPANIES CALLED JUSEN DENY A RESCUE IS IN THE WORKS BUT A SPOKESMAN FOR SANWA BANK A BIG BACKER OF THE LARGEST JUSEN NIPPON HOUSING LOAN CO SAID NIPPON HOUSING'S CREDITORS ARE STUDYING PLANS TO PROVIDE FRESH SUPPORT TO THE TROUBLED HOMEFINANCE COMPANY IT HAS GOT TO THE STAGE WHERE IT'S NO LONGER POSSIBLE FOR ONE BANK TO MANAGE A BAILOUT OF A JUSEN SAYS BRIAN WATERHOUSE BANKING ANALYST AT JAMES CAPEL PACIFIC LTD IT'S GOT TO BE A GROUP EFFORT THE PROBLEMS FACING THE JUSEN ARE SYMPTOMATIC OF JAPAN'S LARGER BANKING CRISIS FOUNDED IN THE 1970S BY BIG BANKS AND OTHER INSTITUTIONS TO MAKE MORTGAGEBACKED LOANS TO CONSUMERS THE EIGHT JUSEN GOT BURNED BY LENDING TO SPECULATIVE REALESTATE DEVELOPERS DURING THE 1980S ASSET BOOM NOW ANALYSTS ESTIMATE THE JUSEN ARE STUCK WITH 57 TRILLION YEN 456 BILLION IN LOANS ON WHICH INTEREST HASN'T BEEN PAID FOR SIX MONTHS OR MORE THAT'S ABOUT 40 OF THEIR TOTAL LENDING THE PROBLEM IS NO ONE WANTS TO FOOT THE BILL THE GOVERNMENT IS LOATHE TO TAKE THE UNPOPULAR STEP OF KICKING IN TAXPAYER MONEY THOUGH ANALYSTS SAY THE PUBLIC STILL MUST EVENTUALLY BE TAPPED TO SAVE THE JUSEN AND OTHER WEAK BANKS THE LARGEST GROUP OF JUSEN CREDITORS NORINCHUKIN BANK LTD AND OTHER POLITICALLY POWERFUL AGRICULTURAL FINANCIAL INSTITUTIONS SAY THEY ARE TOO WEAK TO HELP THE JUSEN THAT LEAVES THE SOCALLED MOTHER BANKS WHICH SET UP THE JUSEN THE MOTHER BANKS INCLUDE JAPAN'S BIG CITY BANKS AND OTHER LARGE LENDING INSTITUTIONS WHICH HAVE PROBLEMS OF THEIR OWN ACCORDING TO THE FINANCE MINISTRY THE COUNTRY'S 21 MAJOR BANKS HELD 123 TRILLION YEN IN BAD LOANS AS OF THE END OF SEPTEMBER STILL IT SEEMS LIKELY THAT THE CITY BANKS WILL BE OBLIGED TO DO MOST OF THE HEAVY LIFTING THE CITY BANKS ARE AT THE CORE OF THE GROUPS THAT BUILT THE JUSEN AND AS SUCH SAYS THE FINANCE MINISTRY THOSE BANKS HAVE A SPECIAL DUTY WHAT'S MORE THE HUGE CITY BANKS DESPITE THEIR PROBLEM LOANS ARE MUCH STRONGER THAN OTHER INSTITUTIONS THAT HAVE LENT TO THE JUSEN AID PLANS BEING FLOATED IN THE JAPANESE PRESS PUT MOST OF THE BURDEN ON THE CITY BANKS NIPPON HOUSING LOAN AND TWO OF ITS LARGEST CITYBANK BACKERS SANWA BANK AND SAKURA BANK TUESDAY DENIED A REPORT IN THE DAILY MAINICHI SHIMBUN THAT SANWA AND SAKURA WOULD CUT THE INTEREST RATE THEY CHARGE NIPPON HOUSING TO ZERO OTHER LENDERS WOULD BE ASKED TO TRIM THEIR RATES AS WELL THOUGH NOT AS MUCH ACCORDING TO THE MAINICHI NEWSPAPER A SPOKESMAN FOR SANWA BANK SAID NEW SUPPORT FOR THE JUSEN IS UNDER STUDY HE REFUSED TO PROVIDE DETAILS BUT SUGGESTED THAT THE MOTHER BANKS ARE SEEKING A HAND FROM OTHER SOURCES IT IS DIFFICULT FOR THE MOTHER BANKS ALONE TO DO IT SO HELP FROM OTHER FINANCIAL INSTITUTIONS IS DESIRABLE HE SAID THE JUSEN HAVE BECOME AN INDUSTRYWIDE PROBLEM THIS MONTH JAPAN'S BANKERS FEDERATION IS TO SET UP AN ENTITY TO BUY NONPERFORMING LOANS FROM PARTICIPATING BANKS BUT THE PLAN LESS A RESCUE SCHEME THAN A MECHANISM TO HELP BANKS MOVE BAD ASSETS OFF THEIR BOOKS CALLS FOR BANKS TO GIVE THE ENTITY THE MONEY NEEDED TO PURCHASE THEIR OWN ASSETS AND OFFERS LITTLE HELP FOR TRULY WEAK FIRMS LIKE THE JUSEN 9301130081 930113 WORLD MARKETS TOKYO PRICES END MIXED BUT NIKKEI INDEX SNAPS LOSING STREAK LONDON STOCKS' RETREAT CONTINUES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES ENDED MIXED TUESDAY BUT THE NIKKEI INDEX POSTED A MODERATE GAIN HALTING A FIVESESSION LOSING STREAK LONDON EQUITIES' RETREAT CONTINUED AS FUTURESRELATED SELLING AND A WEAK OPENING ON WALL STREET UNDERMINED SENTIMENT IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 4514 POINTS MONDAY ROSE 9150 TO 1668105 ON WEDNESDAY THE NIKKEI FELL 13866 POINTS TO CLOSE THE MORNING SESSION AT 1654239 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A THIN 150 MILLION SHARES COMPARED WITH 1509 MILLION SHARES A DAY EARLIER LOSERS NARROWLY TOPPED GAINERS 441421 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 559 POINTS MONDAY EASED 195 TO 128198 WITH MOST INVESTORS ON THE SIDELINES TOKYO ACTIVITY WAS LARGELY TECHNICALLY DRIVEN ARBITRAGERS PULLED THE NIKKEI UP AND DOWN ALL DAY WITH THREEQUARTERS OF THE INDEX'S GAINS COMING FROM HEAVY BUYING IN THE LAST FIVE MINUTES OF TRADING THE ABSENCE OF COHESIVENESS IN REMARKS BY JAPANESE GOVERNMENT OFFICIALS GAVE INVESTORS YET ANOTHER REASON TO STEER CLEAR OF THE MARKET WHILE FINANCE MINISTER YOSHIRO HAYASHI SAID HIS AGENCY WAS STUDYING MEASURES TO BOLSTER THE STOCK MARKET CHIEF ECONOMIC PLANNER HAJIME FUNADA SAID A CUT IN THE OFFICIAL DISCOUNT RATE WHICH ANALYSTS CONSIDER CRUCIAL TO GETTING THE ECONOMY BACK ON TRACK WASN'T UNDER CONSIDERATION MEANWHILE INDIVIDUAL INVESTORS FEARING NIKKEI MANIPULATION BY ARBITRAGERS AND INVESTMENT TRUSTS HAVE BEGUN PUTTING THEIR MONEY IN OVERTHECOUNTER SHARES MOST PARTICIPANTS EXPECT DEALINGS TO REMAIN SLOW UNTIL SIGNS OF A JAPANESE ECONOMIC RECOVERY SURFACE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 155 POINTS TO 27579 NEAR THE INTRADAY LOW OF 27574 THE FT 30STOCK INDEX FELL 133 TO 21370 VOLUME WAS 6644 MILLION SHARES COMPARED WITH 5927 MILLION A DAY EARLIER PRICES WERE STATIC FOR MOST OF THE LONDON SESSION BECAUSE OF A LACK OF MARKETMOVING NEWS AND INVESTORS' CONTINUING RELUCTANCE TO JUMP IN UNTIL FURTHER EVIDENCE OF A BRITISH ECONOMIC RECOVERY EMERGES UNTIL THEN PRICES ARE EXPECTED TO STAY IN A CONSOLIDATION PATTERN HEFTY PRICE DROPS IN SEVERAL BLUECHIP ISSUES FURTHER HAMPERED SENTIMENT AS DID SELLING OF STOCKINDEX FUTURES CONTRACTS AND MORE TALK THAT A LARGE CORPORATE RIGHTS ISSUE IS IN THE OFFING HELPED TO DEPRESS TRADING BRITISH PRODUCERPRICE DATA RELEASED LATE IN THE SESSION WERE AS EXPECTED AND HAD LITTLE EFFECT ON THE STOCK MARKET IN FRANKFURT SHARE PRICES FELL MARGINALLY AS THE MARKET CONTINUED TO TREAD WATER THE DAX 30STOCK INDEX SLIPPED 177 POINTS TO CLOSE AT 153019 WHICH ALSO WAS THE INTRADAY HIGH THOUGH A SELLOFF IN MONDAY'S AFTERMARKET AND A WEAKER DOLLAR PUSHED PRICES LOWER AT THE OPENING THE MARKET RECOVERED ON A RALLY IN BOND PRICES AMID SLIGHTLY IMPROVED VOLUME BUT WITH THE FOCUS REMAINING ON THE GERMAN CENTRAL BANK'S HIGH INTEREST RATES PARTICIPANTS EXPECT THE BEST INDICATOR OF THE STOCK MARKET'S DIRECTION WILL CONTINUE TO BE THE BOND MARKET ELSEWHERE IN EUROPE PARIS SHARES SLUMPED AFTER SEESAWING THAT FINALLY TILTED DOWN BECAUSE OF TECHNICAL FACTORS AND CONCERNS ABOUT FRENCH CORPORATE PROFITS THE EARLIER OPTIMISM STEMMED FROM FAVORABLE FRENCH INFLATION NEWS AND A ROSIER INTERESTRATE OUTLOOK STOCKHOLM PRICES' SLIDE CONTINUED AFTER MONDAY'S PRESENTATION OF THE GOVERNMENT BUDGET PROPOSAL FOR FISCAL 1994 BUT THE DECLINES WERE ATTRIBUTED TO HIGHER INTEREST RATES POOR PERFORMANCES IN MAJOR MARKETS ABROAD AND THE DOWNGRADING OF SIX SWEDISH BANKS AND FINANCIAL INSTITUTIONS BY A USCREDITRATING CONCERN IN ZURICH STRONG BUYING OF FINANCIAL AND INSURANCE ISSUES LED THE MARKET HIGHER THE FINANCIAL SECTOR'S RALLY WAS PROPELLED BY SWISS INSTITUTIONAL INVESTORS ENCOURAGED BY EASING INTEREST RATES IN SWITZERLAND WHILE SOME INDUSTRIALS GAINED ON THE FIRMNESS OF THE DOLLAR STOCKS WERE MIXED OVERALL ON ASIAN AND PACIFIC BOURSES SEOUL SHARES FELL FOR THE SECOND DAY IN A ROW AS A CORRECTION HELD ITS GRIP MANILA'S DECLINE RESULTED FROM PROFITTAKING WELLINGTON SHARES ROSE SHARPLY PARTLY FROM PURCHASES OF BLUECHIPS THAT HAD BEEN OVERSOLD AMONG CORPORATE DEVELOPMENTS IN LONDON GUINNESS SLID 21 PENCE OR 43 TO 473 PENCE 735 THE BREWER AND DISTILLER UNVEILED A 125 MILLION 1944 MILLION PLAN TO REORGANIZE ITS UNITED DISTILLERS UNIT'S SCOTCH WHISKY PRODUCTION OPERATIONS THE PRICE OF THE PROGRAM WHICH INVOLVES LAYOFFS AND EARLY RETIREMENTS TO CUT 700 OF 5000 JOBS OVER TWO YEARS AS WELL AS PLANT CLOSINGS AND ASSET WRITEDOWNS WILL BE SHOWN AS SPECIAL OPERATING COSTS IN 1992 ACCOUNTS GUINNESS ALSO PLANS TO ACCELERATE THE REORGANIZATION AT ITS CRUZCAMPO GROUP THE LEADING BREWER IN SPAIN THIS PROGRAM INCLUDES ADDITIONAL EARLY RETIREMENTS IN PARIS LVMH MOET HENNESSY LOUIS VUITTON SHARES AND THOSE OF ITS AFFILIATED COMPANIES WERE SUSPENDED PENDING AN ANNOUNCEMENT BY THE LUXURY PRODUCTS AND SPIRITS GROUP THAT IT EXPECTS TO POST A 20 DROP IN 1992 PROFIT TO ABOUT THREE BILLION FRENCH FRANCS 5412 MILLION FROM A YEAR EARLIER THE DECLINE WAS PARTLY ATTRIBUTED TO RESTRUCTURING COSTS AT GUINNESS OF WHICH LVMH OWNS 24 LVMH SHARES LAST TRADED AT 3421 FRANCS 61718 UP 14 FRANCS TRADING WAS TO RESUME TODAY 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 9301130080 930113 TWO PESOS INC TO SELL ITS RESTAURANT CHAIN TO RIVAL TACO CABANA HOUSTON LESS THAN SEVEN MONTHS AFTER BEING FORCED IN COURT TO PAY 37 MILLION FOR ALLEGEDLY COPYING THE RESTAURANT DESIGN OF A COMPETITOR TWO PESOS INC SAID IT HAS SIGNED A LETTER OF INTENT TO SELL ITS 34UNIT MEXICAN RESTAURANT CHAIN TO THAT COMPETITOR TACO CABANA INC SAN ANTONIO TEXAS TWO PESOS SAID ITS SHAREHOLDERS WILL RECEIVE ABOUT 22 MILLION IN TACO CABANA STOCK THE COMPANY SAID TACO CABANA ALSO WILL ASSUME ABOUT 4 MILLION IN TWO PESOS' LIABILITIES TACO CABANA SAID THAT EXCEPT FOR SEVEN UNITS IN MALLS IT WILL CONVERT THE RESTAURANTS TO TACO CABANA RESTAURANTS THE COMPANY SAID IT EXPECTS TO CLOSE THIS TRANSACTION IN THE SECOND QUARTER GHULAM BOMBAYWALA PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TWO PESOS SAID THE SALE WAS PROPOSED DURING DISCUSSIONS WITH TACO CABANA LAST FALL AFTER THE US SUPREME COURT UPHELD A RULING THAT TWO PESOS HAD ILLEGALLY IMITATED THE TRADE DRESS OR DISTINCTIVE DECOR OF TACO CABANA'S RESTAURANTS AFTER THE RULING TACO CABANA FILED A SECOND SUIT SEEKING AN ADDITIONAL 5 MILLION IN DAMAGES MR BOMBAYWALA SAID THAT SUIT WILL BE DROPPED THAT'S PART OF THE DEAL HE SAID WE SETTLE THIS THING IN THE TRANSACTION WHICH IS STILL SUBJECT TO DUE DILIGENCE AND OTHER CONDITIONS TWO PESOS WILL RECEIVE ABOUT 940000 TACO CABANA COMMON SHARES SUBSTANTIALLY ALL OF WHICH WOULD BE DISTRIBUTED TO SHAREHOLDERS SAID MR BOMBAYWALA TWO PESOS SHAREHOLDERS WOULD RECEIVE SHARES OF TACO CABANA WITH A VALUE OF ABOUT 215 FOR EACH TWO PESOS SHARE 9301130079 930113 POLITICS & POLICY HOUSE PROBE FAILS TO FIND EVIDENCE OF HOSTAGE DELAY BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A BIPARTISAN HOUSE INVESTIGATION HAS CONCLUDED THERE IS NO CREDIBLE EVIDENCE THAT THE REAGAN PRESIDENTIAL CAMPAIGN SOUGHT TO DELAY THE RELEASE OF AMERICAN HOSTAGES IN IRAN UNTIL AFTER THE 1980 ELECTION THE INVESTIGATION WHICH DREW ON CLASSIFIED GOVERNMENT RECORDS AS WELL AS INTERVIEWS WITH HUNDREDS OF PEOPLE IN THE US EUROPE AND AFRICA IS THE MOST COMPLETE TO DATE OF THE SOCALLED OCTOBER SURPRISE ALLEGATIONS THAT HAVE CIRCULATED SINCE THE HOSTAGES WERE RELEASED IN 1981 THE FINDINGS WHICH ARE TO BE RELEASED TODAY ENCOMPASS SOME CRITICISM OF REAGAN FORCES BUT THEY OVERWHELMINGLY REJECT THE MAJOR ALLEGATIONS OF CLANDESTINE COMMUNICATIONS BETWEEN THE CAMPAIGN AND THE IRANIAN GOVERNMENT AND A TRADEOFF FOR LATER ARMS SHIPMENTS AN EXECUTIVE SUMMARY OBTAINED YESTERDAY SHOWS THAT THE HOUSE TASK FORCE FOUND NO EVIDENCE THAT THE LATE WILLIAM CASEY THE REAGAN CAMPAIGN MANAGER AND LATER CENTRAL INTELLIGENCE AGENCY DIRECTOR HAD ATTENDED A MEETING IN MADRID IN JULY 1980 WITH IRANIAN MIDDLEMEN INSTEAD INVESTIGATORS CONCLUDED THE OVERWHELMING EVIDENCE INDICATES MR CASEY TRAVELED FROM A CALIFORNIA WEEKEND RETREAT TO A LONDON CONFERENCE THAT WEEK RETURNING TO THE US WITHOUT GOING TO MADRID IN THIS REGARD THE HOUSE REPORT IS MORE AUTHORITATIVE THAN AN EARLIER SENATE INVESTIGATION WHICH WAS ENCUMBERED BY LIMITED FUNDS AND A PROHIBITION ON FOREIGN TRAVEL LIKE THEIR SENATE COUNTERPARTS THE HOUSE INVESTIGATORS ARE BLUNTLY CRITICAL OF THE TESTIMONY BY ARI BENMENASHE A FORMER ISRAELI GOVERNMENT TRANSLATOR WHO CLAIMS TO HAVE BEEN AN INTELLIGENCE OPERATIVE WITH KNOWLEDGE OF THE ALLEGED MADRID MEETING AND THE HOUSE REPORT CASTS DOUBT ON WHETHER HOTEL RECORDS ARE CONCLUSIVE PROOF THAT ONE OF THE IRANIAN PRINCIPALS WAS HIMSELF PRESENT AT THE TIME THE CLEAREST CASE OF CRITICISM IN THE 26PAGE EXECUTIVE SUMMARY IS DIRECTED TOWARD THE NETWORK SET UP BY THE REAGAN CAMPAIGN TO COLLECT AND DISSEMINATE INFORMATION RELATED TO THE HOSTAGES AND ITS OWN FEARS THAT THEN PRESIDENT CARTER WOULD USE THE CRISIS TO HIS POLITICAL ADVANTAGE DEMOCRATS FAULT REAGAN CAMPAIGN OFFICIALS FOR FAILING TO PASS ON INFORMATION TO THE GOVERNMENT AND IN OTHER CASES THE MAJORITY ARGUES THAT SOME MATERIALS THAT WERE DISSEMINATED HAD AN UNINTENDED IMPACT ON THE HOSTAGE TALKS REGARDING LATER SHIPMENTS OF USMADE MILITARY EQUIPMENT TO IRAN IN THE EARLY 1980S THE HOUSE TASK FORCE REJECTS ALLEGATIONS OF A TRADEOFF BY THE REAGAN ADMINISTRATION OR A CLANDESTINE SCHEME TO SELL ARMS THEN THROUGH ISRAEL THOUGH ISRAEL AND THE US WOULD LATER BE INVOLVED IN SUCH SALES IN 1985 AND 1986 THE REPORT FOUND NO SUPPORT FOR ALLEGATIONS THAT THERE WERE LARGESCALE SHIPMENTS EARLIER OR THAT THESE WERE DONE IN RETURN FOR THE DELAYED RELEASE OF THE HOSTAGES IN FACT DOCUMENTS AND TESTIMONY COLLECTED BY THE PANEL CONCLUSIVELY ESTABLISHED THAT THE REAGAN ADMINISTRATION UPHELD THE ARMS EMBARGO WITH IRAN ACCORDING TO THE SUMMARY AND ISRAEL REACHED THE SAME CONCLUSION AFTER CONDUCTING ITS OWN INQUIRY FOR THE TASK FORCE MEANWHILE THE WHITE HOUSE ANNOUNCED THAT IT WOULD DISCLOSE PROBABLY FRIDAY COPIES OF PRESIDENT BUSH'S 1988 TESTIMONY TO IRANCONTRA PROSECUTORS AND HIS DIARY NOTES RELATING TO THE SCANDAL MR BUSH'S SPOKESMAN MARLIN FITZWATER SAID THE MATERIAL CLEARLY SHOWS THAT HE DOESN'T HAVE ANY INVOLVEMENT HERE THAT'S QUESTIONABLE IN A LEGAL SENSE THE RELEASE WILL EASE A STANDOFF OF SORTS BETWEEN MR BUSH AND INDEPENDENT COUNSEL LAWRENCE WALSH THAT BECAME PUBLIC FOLLOWING THE CHRISTMAS EVE PARDONS THAT MR BUSH ISSUED TO CASPAR WEINBERGER AND FIVE OTHER IRANCONTRA FIGURES FOLLOWING THE PARDONS MR WALSH DISCLOSED THAT THE WHITE HOUSE HAD BELATEDLY INFORMED HIM OF THE EXISTENCE OF NOTES FROM A DIARY MR BUSH BEGAN IN LATE1986 ABOUT THE TIME WHEN THE SCANDAL BROKE INTO THE OPEN WHILE MR WALSH COMPLAINED OF PRESIDENTIAL MISCONDUCT IN NOT OFFERING THE NOTES SOONER WHITE HOUSE OFFICIALS PLEDGED TO PUBLICLY DISCLOSE BOTH THE NOTES AND MR BUSH'S TESTIMONY TO CLEAR ANY SUSPICIONS ABOUT HIS IRANCONTRA ROLE THE PROBLEM ADMINISTRATION OFFICIALS SAID WAS THAT MR WALSH HADN'T GIVEN MR BUSH A COPY OF HIS TESTIMONY THE PROSECUTOR FINALLY PROVIDED A COPY IN RECENT DAYS AFTER RECEIVING FEDERAL COURT PERMISSION TO DO SO AND THE TRANSCRIPT WAS DECLASSIFIED FOR RELEASE YESTERDAY WHILE MR WALSH HAS REFERRED TO MR BUSH AS THE SUBJECT OF HIS INVESTIGATION AND MAY QUESTION HIM NEXT MONTH HE HASN'T SIGNALED ANY INTENTION OF ATTEMPTING TO BUILD A LEGAL CASE AGAINST THE OUTGOING PRESIDENT JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9301130078 930113 NOVELL BUYS 20 OF HYPERDESK PROVO UTAH NOVELL INC SAID IT ACQUIRED 20 OF CLOSELY HELD HYPERDESK CORP OF WESTBOROUGH MASS TERMS WEREN'T DISCLOSED NOVELL ALSO SAID IT AND HYPERDESK ENTERED A MULTIYEAR RESEARCH AND DEVELOPMENT AGREEMENT NOVELL WHICH HAD SALES OF 9334 MILLION IN THE FISCAL YEAR ENDED OCT 31 IS AN INDUSTRY LEADER IN COMPUTER NETWORKING SOFTWARE WHICH ENABLES COMPUTERS TO COMMUNICATE WITH EACH OTHER HYPERDESK MAKES INTERFACES THAT ALLOW APPLICATIONS SOFTWARE SUCH AS DATABASES AND SPREADSHEETS TO BE INTEGRATED WITH NETWORKING SOFTWARE AND TRANSMITTED THROUGHOUT A COMPUTER NETWORK 9301130077 930113 MARKETING & MEDIA ADVERTISING CIGARETTE FIRM TO PROMOTE BRAND BY BRAGGING ABOUT ITS INGREDIENTS BY LAURA BIRD LIGGETT GROUP THE SMALLEST OF THE MAJOR CIGARETTE MAKERS IS BETTING 20 MILLION ON A FOLKSY PRINT AD CAMPAIGN THAT IT HOPES WILL BREATHE LIFE BACK INTO CHESTERFIELD AN 80YEAROLD BRAND THAT HASN'T BEEN ADVERTISED IN 25 YEARS BUT THE EFFORT WHICH INTRODUCES A FILTERED VERSION OF THE VINTAGE SMOKE MAY ULTIMATELY PROVE HAZARDOUS TO THE TOBACCO INDUSTRY'S HEALTH THE CAMPAIGN DOES WHAT PRACTICALLY NO OTHER CIGARETTE ADS DARE TO DO IT BREAKS THE SIX US TOBACCO COMPANIES' COLLECTIVE SILENCE ABOUT THE ACTUAL INGREDIENTS IN THEIR CIGARETTES BY BOASTING ABOUT THE QUALITY OF CHESTERFIELD TOBACCO AND TRASHING THE COMPETITION AT A TIME WHEN ANTISMOKING ACTIVISTS ARE READYING A PUSH TO HAVE CIGARETTES TREATED AS PHARMACEUTICALS AND BE NEWLY REGULATED BY THE FOOD AND DRUG ADMINISTRATION LIGGETT'S AD POINTS OUT TACTLESSLY JUST HOW LITTLE PUFFERS REALLY KNOW ABOUT WHAT GOES INTO THEIR LUNGS GERRY REID LIGGETT SENIOR VICE PRESIDENT OF SALES AND MARKETING MAKES NO BONES ABOUT IT FOR SOMETHING THAT PEOPLE PUT INTO THEIR MOUTHS 20 OR 30 TIMES A DAY IT'S SURPRISING THAT NO ONE TELLS THEM MORE ABOUT IT HE MARVELS LARGE MANUFACTURERS HAVE A VESTED INTEREST IN NOT TELLING WE BEING THE LITTLE GUY MIGHT AS WELL TELL THE TRUTH AND MAKE HAY WITH IT THE BRAZEN CAMPAIGN IS LIKELY TO CEMENT THE REPUTATION OF LIGGETT THE CIGARETTE MANUFACTURING UNIT OF BROOKE GROUP LTD AS THE TOBACCO INDUSTRY'S SPOILER CREATED BY WPP GROUP'S OGILVY & MATHER NEW YORK THE CAMPAIGN SWIPES AT COMPETITORS' CIGARETTES IN HOMESPUN PROSE EXPLAINING HOW CHESTERFIELD PAINSTAKINGLY CLEANS TOBACCO OF COARSE STEMS WHILE OTHER COMPANIES CHOP 'EM UP AND PUT 'EM BACK IN THE AD GOES ON TO TELL HOW CHESTERFIELD PUTS A GENEROUS WAD OF TOBACCO INTO EVERY CIGARETTE WE RECKON IT FLATOUT MAKES A BETTER SMOKE THE AD DRAWLS LIGGETT'S CORNY TONE AND ITS UNABASHED DESCRIPTION OF TOBACCOROLLING MARK AN UNUSUAL DEPARTURE FROM THE FASHION AND STATUS STATEMENTS FAVORED IN MOST TOBACCO ADS MOST OF THE BESTKNOWN CAMPAIGNS INCLUDING PHILIP MORRIS'S MARLBORO MAN AND RJR NABISCO'S CARTOON CAMEL FOCUS ON ABSTRACT ILLUSTRATIONS OF ADVENTURE AND GLAMOUR THEY CERTAINLY DON'T BOAST ABOUT SPECIFIC INGREDIENTS AND OFTEN DON'T EVEN SHOW PEOPLE SMOKING IN SHARP CONTRAST THE CHESTERFIELD ADS SHOW A WISTFUL SCENE OF A DURHAM NC FACTORY LOADING DOCK WHERE WORKERS TAKE A GOOD OLDFASHIONED CIGARETTE BREAK THE FACT IS AMERICAN CIGARETTES ALL HAVE SIGNIFICANT QUANTITIES OF FILLER INGREDIENTS STEMS RECONSTITUTED AND PUFFED TOBACCO MR REID SAYS LIGGETT DECIDED A CIGARETTE WITHOUT SUCH DETRITUS COULD BE THE BASIS FOR A LEGITIMATE PRODUCT THE ADS HOWEVER COULD SPARK A CONTROVERSY INDUSTRY CRITICS AND MARKETERS SAY THAT BY HARPING ON THE INFERIOR INGREDIENTS OF COMPETING SMOKES LIGGETT IS EXPOSING ONE OF THE INDUSTRY'S DIRTIEST BUT BEST KEPT SECRETS EVEN SMOKERS THEY SAY WOULD BE UNPLEASANTLY SURPRISED TO FIND OUT WHAT TOBACCO COMPANIES PUT IN THEIR CIGARETTES TOBACCO ADS SELDOM IF EVER TELL THE QUALITY STORY ACCORDING TO ANTHONY REGENSBURG A BOCA RATON FLA CONSULTANT TO TOBACCO WHOLESALERS BECAUSE TOBACCO HAS BEEN SO ADULTERATED OVER THE YEARS THAT NO ONE HAS THAT STORY TO TELL THE CAMPAIGN EXPOSES THE FAULT LINE THAT CIGARETTES ARE A HIGHLY MANUFACTURED PRODUCT WITH ALL KINDS OF ADDITIVES SAYS RICHARD DAYNARD CHAIRMAN OF THE TOBACCO PRODUCTS LIABILITY PROJECT A BOSTON GROUP THAT ENCOURAGES LAWSUITS AGAINST TOBACCO COMPANIES IN SOME RECENT TOBACCO LIABILITY CASES MR DAYNARD SAYS THE TOBACCO INDUSTRY'S BASIC DEFENSE HAS BEEN THAT THIS PRODUCT IS NATURAL LIGGETT'S MR REID SAYS THE CHESTERFIELD CAMPAIGN STRATEGY WAS MEANT TO GO AFTER COMPETITORS ON THE TOPIC OF TOBACCO QUALITY NOT FLAVORING ADDITIVES COMMON ADDITIVES HE SAYS INCLUDE COCOA SUGAR AND LICORICE NORMAL KINDS OF HOUSEHOLD FLAVORING FOOD INGREDIENTS NOTHING THAT YOU'D CALL NASTY MR REID SAYS CRITICS SUSPECT THAT MORE INSIDIOUS INGREDIENTS ALSO ARE ROUTINELY ADDED TO CIGARETTES TO CHANGE THEIR FLAVOR OR RETARD THE BURN OF THE FLAME CARBON MONOXIDE FORMALDEHYDE ARSENIC AND A HOST OF OTHER UNSAVORY COMPOUNDS TURN UP IN TOBACCO SMOKE UNDER ANALYSIS ACCORDING TO STANTON GLANTZ PROFESSOR OF MEDICINE AT THE UNIVERSITY OF CALIFORNIA IN SAN FRANCISCO BUT SUCH ANALYSES DON'T TELL WHETHER THE COMPOUNDS ORIGINATED IN THE TOBACCO OR WERE FORMED AS A RESULT OF BEING BURNED CIGARETTE COMPANIES ARE REQUIRED TO DISCLOSE THEIR INGREDIENTS ONLY TO THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES IN A TOPSECRET COMPOSITE LIST THAT DOESN'T INCLUDE SPECIFICS ON BRANDS OR QUANTITIES THE REASON FOR THE SECRECY ACCORDING TO THE TOBACCO INSTITUTE IS TO GUARD EACH BRAND'S RECIPE FROM THE COMPETITION IT'S A LITTLE LIKE HOW COKE TASTES DIFFERENT THAN PEPSI SAYS INSTITUTE SPOKESWOMAN BRENNAN DAWSON THIS ISN'T THE FIRST TIME THAT LIGGETT HAS BROKEN RANKS WITH ITS RIVALS FOR THE SAKE OF MARKETING IN 1988 LIGGETT THUMBED ITS NOSE AT THE LOCKSTEP PRICING PRACTICES IN THE TOBACCO INDUSTRY AND INTRODUCED PYRAMID THEN THE NATION'S LOWESTPRICED CIGARETTE THAT MOVE TOUCHED OFF AN ERA OF PRICE WARS AND DISCOUNTING THAT CONTINUE TO UNDERCUT THE INDUSTRY'S PROFITS TO THIS DAY EVEN IF CHESTERFIELD CATCHES FIRE IT ISN'T LIKELY TO REVIVE THE FORTUNES OF LIGGETT BEST KNOWN FOR MAKING NO NAME GENERIC SMOKES LIGGETT IS A FADED PLAYER IN TOBACCO HOLDING A MEAGER 32 SHARE OF THE TOTAL CIGARETTE MARKET ACCORDING TO TOBACCO ANALYST JOHN MAXWELL OF WHEAT FIRST SECURITIES IN RICHMOND VA CHESTERFIELD IN ITS NONFILTER VERSION HOLDS A MICROSCOPIC 01 MARKET SHARE STARTLING AS THE NEW CAMPAIGN IS AN EARLIER VERSION WAS EVEN MORE SPINETINGLING IT WAS CENTERED LIGGETT'S MR REID SAYS ON GUYS IN WHITE COATS IN LABORATORIES DIAGNOSING THE INGREDIENTS EVEN FOR LIGGETT THAT IDEA MAY HAVE GONE TOO FAR IT NEVER SAW THE LIGHT OF DAY FRUIT OF THE LOOM THE LONDON OFFICE OF LEO BURNETT CO WON FRUIT OF THE LOOM'S EUROPEAN ADVERTISING BUSINESS PREVIOUSLY HANDLED BY GREY ADVERTISING BURNETT WON THE BIG US ACCOUNT IN OCTOBER ACCOUNTS NORDICTRACK A CHASKA MINN UNIT OF CONSUMER MARKETING LIFESTYLE GROUP ACTON MASS TAPPED JORDAN MCGRATH CASE & TAYLOR NEW YORK TO CREATE ADS FOR NORDICFLEX GOLD A HOME EXERCISE MACHINE BILLINGS ARE ESTIMATED AT 5 MILLION WHO'S NEWS TOM MONROE EXECUTIVE CREATIVE DIRECTOR AT TRACYLOCKE THE DALLAS OFFICE OF OMNICOM GROUP'S DDB NEEDHAM IS LEAVING THE AGENCY TO JOIN FOGARTY & KLEIN/WINIUS BRANDON HOUSTON AS PRESIDENT AND CHIEF CREATIVE OFFICER MR MONROE'S DEPARTURE COMES TWO MONTHS AFTER TRACYLOCKE HIRED FOX BROADCASTING EXECUTIVE DAVID FOWLER AS ITS CHIEF CREATIVE OFFICER 9301130076 930113 TRAVEL DELTA AIR MOVES TO UNDERCUT NORTHWEST ON FARE CUTS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES TODAY WILL CUT CERTAIN TICKET PRICES FOR LEISURE TRAVEL 30 TO 40 IN A MOVE THAT UNDERCUTS A NEW FARE STRUCTURE ANNOUNCED THIS WEEK BY NORTHWEST AIRLINES AND KICKS OFF THE FIRST FARE WAR OF THE NEW YEAR THE ATLANTABASED CARRIER WHICH IN THE PAST HAS BEEN MORE A FOLLOWER OF FARE MOVES THAN A PACE SETTER SAID IT WILL CUT PRICES ON ITS LOWEST LEISURE FARES 40 ON OFFPEAK FLIGHTS THOSE FROM MONDAY TO THURSDAY ON CERTAIN ROUTES CERTAIN PEAK FLIGHTS FROM FRIDAY TO SUNDAY WILL SEE CUTS OF 30 THE FARES ARE GOOD ONLY FOR 14DAY ADVANCEPURCHASE TICKETS REQUIRE A SATURDAY NIGHT STAY AND ARE GOOD FOR TRAVEL UNTIL APRIL 30 THEY ARE NONREFUNDABLE DELTA PLANS TO CUT THE TICKET PRICES A FULL 30 TO 40 ONLY WHERE IT COMPETES DIRECTLY WITH NORTHWEST OR IN ABOUT 1800 MARKETS OUT OF A POTENTIAL 10000 ANY MARKET WHERE WE HAVE SUPERIOR SERVICE EITHER WITH NONSTOP SERVICE OR BETTER CONNECTING SERVICE DELTA'S CUTS WILL BE NARROWER A COMPANY SPOKESMAN SAID WHILE DELTA'S MOVE IS A SHARP REBUKE TO NORTHWEST WHICH ON MONDAY INTRODUCED A SLIDING SCALE OF DISCOUNTS FOR GROUP TRAVEL IT DOESN'T APPROACH THE MAGNITUDE OF LAST SUMMER'S COSTLY INDUSTRYWIDE SALE WHICH CUT SOME TICKET PRICES IN HALF THAT SALE WHICH ALSO WAS LAUNCHED BY A LARGER COMPETITOR'S RESPONSE TO A NORTHWEST MOVE WREAKED HAVOC IN THE TRAVEL INDUSTRY AND CAUSED MASSIVE LOSSES FOR VIRTUALLY ALL CARRIERS THAT'S UNLIKELY TO HAPPEN THIS TIME AIR FARES HAVE SINCE CLIMBED TO HIGHER LEVELS WITH EXCURSION FARES ALONE UP 15 TO 20 FROM THE SUMMER AND DELTA'S DISCOUNTS ARE NARROWER THAN THOSE OFFERED LAST SUMMER EVEN SO DELTA'S RESPONSE IS UNCHARACTERISTICALLY MORE HEAVYHANDED THAN WE EXPECTED TO SEE SAID SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY IT'S UNCLEAR WHETHER THE CUTS WILL KICKSTART LEISURE TRAVEL WHICH HAS BEEN SLOW BECAUSE OF THE RECENT PRICE RISES DELTA ISN'T EXPECTED TO ANNOUNCE THE CUTS UNTIL SOMETIME TODAY BUT THE SPOKESMAN CONFIRMED THE ACTION LAST NIGHT THE REASON WE'RE DOING THIS IS THAT NORTHWEST CREATED AN ALMOST UNWORKABLE ENVIRONMENT FOR ABUSE HE SAID IT WOULD MAKE IT A VERY DIFFICULT SITUATION FOR TRAVEL AGENTS AND CONSUMERS SPECIFICALLY NORTHWEST A UNIT OF WINGS HOLDINGS INC HAD ANNOUNCED 20 DISCOUNTS FOR TWO PEOPLE TRAVELING TOGETHER 30 DISCOUNTS FOR GROUPS OF THREE AND 40 OFF FOR GROUPS OF FOUR OR MORE THE SPECIAL FARES REQUIRE PASSENGERS GETTING THE DISCOUNT TO BOOK THEIR TICKETS TOGETHER CHECK IN TOGETHER AND FOLLOW THE SAME ITINERARY EVEN BEFORE DELTA MADE ITS MOVE THE CARRIER WAS HINTING AT ITS ACTION COMPLAINING THAT PASSENGERS WHO OTHERWISE WOULDN'T BE TRAVELING TOGETHER COULD TRY TO LINK UP TO GET THE DISCOUNTS A NORTHWEST SPOKESMAN SAID THE FARE IS DESIGNED TO ATTRACT A PARTICULAR SEGMENT OF THE MARKET IE LEISURE TRAVELERS WHO UNTIL TODAY WERE BEING LEFT OUT OF THE CURRENT FARE STRUCTURE IT ALSO WAS STRUCTURED TO MAKE DISCOUNTS AVAILABLE TO PEOPLE TRAVELING IN GROUPS AND MAKING IT HARDER FOR BUSINESS TRAVELERS TO ABUSE THE FARE HE DIDN'T HAVE ANY COMMENT ON WHAT ACTION IF ANY NORTHWEST WOULD TAKE ABOUT THE DELTA MOVE DELTA LOADED THE NEW FARES INTO ITS COMPUTERS LATE YESTERDAY EVENING BEFORE OTHER CARRIERS COULD RESPOND TO THEM MEANTIME ONLY UNITED AIRLINES AND CONTINENTAL AIRLINES HAVE ADOPTED NORTHWEST'S GROUP DISCOUNTS MATCHING ONLY IN MARKETS WHERE THEY COMPETE WITH NORTHWEST UNITED IS A UNIT OF UAL CORP CONTINENTAL IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC OTHER CARRIERS INCLUDING AMERICAN AIRLINES AN AMR CORP UNIT AND USAIR GROUP WERE REVIEWING THE DISCOUNTS 9301130075 930113 BUSINESS BRIEF NEOPROBE CORP PHASE II CLINICAL TRIALS BEGIN FOR OVARIAN CANCER SYSTEM NEOPROBE CORP WHICH WENT PUBLIC LAST NOVEMBER SAID IT BEGAN PHASE II CLINICAL TRIALS FOR ITS OVARIAN CANCER DETECTION SYSTEM BUT THE PRODUCT IS AT LEAST THREE YEARS AWAY FROM MARKET IT SAID THE SYSTEM IS AN APPLICATION OF THE COMPANY'S MAIN PRODUCT RADIOIMMUNOGUIDED SURGERY WHICH DETECTS MICROSCOPIC TUMORS MISSED BY CT SCANS AND EXPLORATORY SURGERY TO USE THE SYSTEMS DOCTORS INJECT THE CANCER PATIENT WITH CERTAIN ANTIBODIES THAT CLUSTER NEAR MATERIAL THAT SURROUNDS CANCER CELLS THEN THE DOCTOR USES A HANDHELD DEVICE TO SCAN THE PATIENT'S BODY TO FIND THE ANTIBODIES NEOPROBE USED THE SAME TECHNOLOGY FOR A COLORECTAL CANCER DETECTION SYSTEM AND EVENTUALLY HOPES IT CAN BE USED FOR ALL SOLID TUMORS INCLUDING BREAST CANCER THE COLORECTAL DETECTION SYSTEM SHOULD ENTER PHASE III CLINICAL TRIALS THIS YEAR ACCORDING TO A COMPANY PROSPECTUS THAT PRODUCT IS AT LEAST TWO YEARS FROM MARKET THE COLUMBUS OHIO COMPANY SAID 9301130074 930113 BUSH MOVING TOWARD STRIKE AGAINST IRAQ ATTACK IS SAID TO BE READY UNLESS BAGHDAD MAKES BIG CHANGE IN ACTIONS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT BUSH IS MOVING RAPIDLY TOWARD A DECISION TO TAKE MILITARY ACTION AGAINST IRAQ BECAUSE OF ITS NEW PATTERN OF PROVOCATIVE BEHAVIOR US OFFICIALS SAY THAT MR BUSH NOW IS INCLINED TO LAUNCH A LIMITED MILITARY STRIKE UNLESS THERE IS A MARKED CHANGE IN IRAQI ACTIONS IN THE NEXT FEW DAYS PARTICULARLY A CHANGE IN THE CONTINUED MOVEMENT OF IRAQI ANTIAIRCRAFT MISSILES IN NORTHERN AND SOUTHERN IRAQ THOUGH IRAQ HAS MOVED OUT SOME OF THE ANTIAIRCRAFT MISSILES IN SOUTHERN IRAQ AFTER RECEIVING AN ULTIMATUM FROM THE US AND ITS ALLIES US OFFICIALS CONTINUE TO BE TROUBLED BY MOVEMENT BY OTHER MISSILE BATTERIES IN ADDITION REPEATED RAIDS INTO DISPUTED AREAS ALONG THE IRAQKUWAIT BORDER HAVE ANGERED US OFFICIALS WHO SAY THEY ARE MORE UPSET ABOUT THE PATTERN OF RECENT IRAQI VIOLATIONS THAN ABOUT ANY PARTICULAR ACTION DEFENSE DEPARTMENT AIDES HAVE SAID FOR SEVERAL DAYS THAT MILITARY UNITS IN THE REGION WHICH HAVE BEEN BOLSTERED BY THE RECENT ARRIVAL OF THE AIRCRAFT CARRIER KITTY HAWK AND ITS TASK FORCE ARE READY TO MOVE AGAINST IRAQI TARGETS WITH AIR STRIKES WHENEVER ORDERED TO DO SO OUR FINGER IS ON THE TRIGGER ONE PENTAGON OFFICIAL SAID BUT OFFICIALS ALSO INDICATED LAST NIGHT THAT ORDERS FOR A MILITARY MOVE HAVEN'T YET BEEN ISSUED AND IT APPEARS THAT MR BUSH IS STILL PREPARED TO STOP SHORT OF MILITARY ACTION IF IRAQ MORE CLEARLY ALTERS ITS BEHAVIOR AND BEGINS COOPERATING WITH THE UN MORE THAN IT HAS BEEN WILLING TO OVER THE PAST WEEK IRAQ TRIED TO HEAD OFF A USLED MILITARY ACTION YESTERDAY BY DELIVERING A LETTER TO THE UN SECURITY COUNCIL ASKING FOR NEW TALKS TO EASE TENSIONS AND END THE DISPUTE OVER IRAQI INCURSIONS INTO THE UNCONTROLLED KUWAIT BORDER REGION BUT IT IS ALSO CLEAR THAT THE US ISN'T WILLING TO WAIT FOR ANY CLEAR NEW SIGNALS FROM THE SECURITY COUNCIL BEFORE ACTING RATHER ANY MILITARY ACTION WILL BE TAKEN BY THE US FRANCE AND BRITAIN OPERATING UNDER AUTHORITY GRANTED IN EARLIER UN RESOLUTIONS THOSE RESOLUTIONS CALLED FOR IRAQ TO STOP PERSECUTING ITS OWN PEOPLE AND TO COOPERATE WITH THE UN ON WEAPONS DESTRUCTION AND BORDER QUESTIONS 9301130073 930113 LETTERS TO THE EDITOR CHEVY CHASE BANK'S CREDITCARD SECURITIES YOUR DEC 14 ARTICLE ASSETBACKED MARKET PASSES MAJOR HURDLE SAID THAT CERTAIN CHEVY CHASE SAVINGS BANK CREDITCARD SECURITIES WERE LIQUIDATED IN 1991 AND THAT THE SECURITIES HOLDERS WERE PAID BACK EARLIER THAN EXPECTED BECAUSE CREDITCARD DEFAULTS SOARED YOU WENT ON TO DESCRIBE EARLY AMORTIZATION FEATURES OF CREDITCARD SECURITIES YOUR STATEMENTS REGARDING THE BANK'S SECURITIES ARE ERRONEOUS NONE OF CHEVY CHASE'S SECURITIES HAVE EVER PAID OUT EARLY CHEVY CHASE CREDIT CARD TRUSTS 1989B AND 1989C HAVE A FEATURE THAT ALLOWED THE BONDHOLDERS TO TRIGGER EARLY AMORTIZATION IF CERTAIN EVENTS OCCUR ONE SUCH EVENT OCCURRED BUT THE NECESSARY NUMBER OF BONDHOLDERS DID NOT REQUEST THE EARLY AMORTIZATION BOTH TRUSTS HAVE ALWAYS GENERATED A POSITIVE CASH FLOW ABOVE THE REQUIRED BASE RATE FURTHERMORE THE RATING AGENCIES REAFFIRMED THE TRIPLEA RATINGS OF THE TWO TRUSTS AND INDICATED THERE WAS LITTLE RISK TO THE INVESTORS THE 1989C TRUST IS NOW AMORTIZING BUT ON SCHEDULE IN ACCORDANCE WITH THE ORIGINAL TERMS DESCRIBED IN THE PROSPECTUS THE 1989B TRUST IS NOT AMORTIZING AND IS NOT SCHEDULED TO DO SO UNTIL MID1993 THE INVESTORS HAVE NOT SUFFERED ANY REINVESTMENT RISK OR LOSS AS IMPLIED IN THE ARTICLE 9301130071 930113 BUSINESS BRIEF SANTA FE ENERGY RESOURCES HOUSTON FIRM NAMES PARTIES IN HC ASSOCIATES' PURCHASE SANTA FE ENERGY RESOURCES RESPONDING TO HC ASSOCIATES' PURCHASE LAST MONTH OF 114 OF THE COMPANY'S COMMON SHARES IDENTIFIED OTHER PARTIES INVOLVED IN THE PARTNERSHIP IN ADDITION TO INVESTOR SAMUEL ZELL THE HOUSTON COMPANY SAID THAT HC ASSOCIATES IS A DELAWARE GENERAL PARTNERSHIP THAT INCLUDES GKH INVESTMENTS LP WITH ABOUT 4726 INTEREST GKH PARTNERS LP WITH 179 INTEREST ZELL/CHILMARK FUND LP WITH 4904 INTEREST ERNEST H COCKRELL TEXAS TESTAMENTARY TRUST AND CAROL COCKRELL JENNINGS TEXAS TESTAMENTARY TRUST EACH WITH 096 INTERESTS GKH PARTNERS THE SOLE GENERAL PARTNER OF GKH INVESTMENTS IS AN INVESTMENT PARTNERSHIP WHOSE GENERAL PARTNERS ARE ENTITIES CONTROLLED BY JAY A PRITZKER THOMAS J PRITZKER MELVYN N KLEIN AND DAN W LUFKIN SANTA FE ENERGY SAID 9301130070 930113 BUSINESS BRIEF SILICON VALLEY BANCSHARES FIRM POSTS 89 DROP IN NET FOR 4TH PERIOD LOSS FOR YEAR SILICON VALLEY BANCSHARES SAID FOURTHQUARTER NET INCOME PLUNGED 89 TO 364000 OR FIVE CENTS A SHARE LEAVING IT WITH A LOSS FOR THE YEAR THE SAN JOSE CALIF COMPANY CITED THE RECESSION AND THE REAL ESTATE SLUMP SILICON VALLEY MADE A NAME FOR ITSELF BY SPECIALIZING IN LENDING TO HIGHTECHNOLOGY CONCERNS BUT IT HAS BEEN DAMAGED RECENTLY BY AN ILLFATED EXPANSION OF ITS REAL ESTATE PORTFOLIO THE COMPANY SAID IT EXPECTS CONTINUED SIGNIFICANT LOAN CHARGEOFFS AND LOANLOSS PROVISIONS THIS YEAR AS IT WORKS THROUGH ITS CLOT OF BAD ASSETS 9301130069 930113 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9301130068 930113 BUSINESS BRIEF HALLIBURTON CO COMPANY TO TAKE CHARGES THAT WILL CUT NET FOR 1992 HALLIBURTON CO DALLAS SAID IT WOULD TAKE CHARGES WHOSE COMBINED EFFECT WILL REDUCE 1992 NET INCOME BY 2074 MILLION OR 194 A SHARE ABOUT 1929 MILLION WILL BE CHARGED FOR RESTRUCTURING WHICH WAS ALREADY ANNOUNCED LAST FALL ANOTHER 299 MILLION IS A CHARGE RELATING TO THE ADOPTION OF A NEW ACCOUNTING STANDARD FOR THE FINANCIAL TREATMENT OF BENEFITS FOR RETIRED EMPLOYEES THE DIVERSIFIED ENERGY SERVICES CONCERN SAID IT WILL RECORD A BENEFIT OF 154 MILLION CONCERNING A NEW STANDARD FOR REPORTING FEDERAL INCOME TAXES FOR 1991 HALLIBURTON EARNED 266 MILLION OR 25 CENTS A SHARE ON 702 BILLION OF REVENUE AS PREVIOUSLY REPORTED HALLIBURTON'S RESTRUCTURING CHARGE RELATES TO A WRITEDOWN OF CERTAIN ASSETS REALIGNMENT OF MANUFACTURING ACTIVITIES PERSONNEL COSTS AND EXPENSES AND OPERATING LOSSES ON EXISTING JOB CONTRACTS OUR CURRENT OUTLOOK IS FOR GRADUALLY STRENGTHENING MARKET CONDITIONS OVER THE NEXT SEVERAL YEARS SAID THOMAS CRUIKSHANK CHAIRMAN AND CHIEF EXECUTIVE HE ALSO SAID THAT RECORDING RESTRUCTURING CHARGES AND GETTING THE ACCOUNTING CHANGES ADOPTED IN 1992 WILL SET THE STAGE FOR A SIGNIFICANT RECOVERY OF THE COMPANY'S EARNINGS IN 1993 AND FUTURE YEARS 9301130066 930113 BUSINESS BRIEF AMERICAN MEDICAL HOLDINGS INC FIRM TO POST 1STQUARTER NET OF 9 MILLION TO 10 MILLION AMERICAN MEDICAL HOLDINGS INC EXPECTS TO REPORT NET INCOME OF 9 MILLION TO 10 MILLION OR 12 CENTS TO 14 CENTS A SHARE FOR ITS FISCAL FIRST QUARTER ENDED NOV 30 AMERICAN MEDICAL HAD NET INCOME OF 155000 OR LESS THAN A PENNY A SHARE A YEAR EARLIER SAID W RANDOLPH SMITH EXECUTIVE VICE PRESIDENT OF OPERATIONS THE PREVIOUS YEAR'S RESULTS INCLUDED A 18 MILLION EXTRAORDINARY CHARGE RELATED TO THE REPURCHASE OF DEBT REVENUE IN THE LATEST QUARTER ROSE SLIGHTLY TO ABOUT 540 MILLION FROM 5386 MILLION A YEAR EARLIER MR SMITH SAID THE DALLAS HOSPITAL CONCERN PARENT OF AMERICAN MEDICAL INTERNATIONAL INC EXPECTS TO REPORT ITS EARNINGS TODAY MR SMITH ATTRIBUTED THE RESULTS IN LARGE PART TO THE COMPANY'S CONTINUING EFFORT TO CUT OPERATING COSTS HE NOTED THAT A RECENTLY REVAMPED EMPLOYEE BENEFITS PLAN WHICH SHIFTS MORE OF THE COST OF HEALTH CARE COVERAGE TO EMPLOYEES IS EXPECTED TO PRODUCE 10 MILLION TO 12 MILLION IN SAVINGS ANNUALLY 9301130065 930113 HEARD ON THE STREET STOCKS ARE LOOKING UP DOWN UNDER BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU MISSED THE RALLY IN US STOCKS LAST YEAR THERE'S STILL A CHANCE TO BUY INTO THE START OF AN ECONOMIC RECOVERY JUST LOOK DOWN UNDER AUSTRALIA IS STEPPING OUT OF A RECESSION TOO AND IT FEELS A LOT LIKE THE US DID A FEW MONTHS AGO THE BIG DIFFERENCE IS THAT AUSTRALIAN INVESTORS DON'T SEEM AS QUICK AS AMERICANS TO PICK UP ON AN ECONOMIC TURNAROUND WHILE THE STANDARD & POOR'S 500STOCK INDEX IN THE US ROSE 45 FOR 1992 THE ALL ORDINARIES INDEX ON THE AUSTRALIAN STOCK EXCHANGE FELL ABOUT 6 FOR THE YEAR SUCH DISPARITIES IN PERFORMANCE AMID SIMILAR ECONOMIC NEWS SUGGESTS THAT AUSTRALIA MAY BE A GOOD HUNTING GROUND FOR US INVESTORS WHO ARE ALREADY USED TO PLAYING A RECOVERY THE ALL ORDINARIES INDEX IS NOW ON THE MOVE PERKING UP 11 FROM AN ANNUAL LOW IN MIDNOVEMBER TO 15094 TUESDAY AUSTRALIAN STOCKS CAN EASILY BE BOUGHT THROUGH MAJOR US BROKERAGE HOUSES SOMETIMES IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS MOREOVER THE CLOSEDEND FIRST AUSTRALIA FUND TRADES ON THE AMERICAN STOCK EXCHANGE CURRENTLY AT 7 5/8 UNDER THE SYMBOL IAF FUND SHARES HAVE BEEN TRADING AT AN 8 DISCOUNT MEANING THAT NEW INVESTORS PAID ONLY 92 CENTS FOR EACH 1 OF AUSTRALIAN STOCKS IN THE FUND'S PORTFOLIO BANKS ARE AMONG THE EARLY BENEFICIARIES OF AUSTRALIA'S RECOVERY JUST AS THEY WERE IN THE US A BANKSTOCK RALLY SET THE TONE FOR A MILD AUSTRALIAN STOCK MARKET REBOUND LATE LAST YEAR AFTER BANKS POSTED THEIR ANNUAL RESULTS NOV 19 WESTPAC BANKING SHOWED A LOSS FOR THE YEAR ENDED SEPT 30 BUT ANALYSTS WERE HAPPY THAT THE COMPANY HAD WRITTEN DOWN MOST OF ITS 1980S PROBLEM LOANS THE SHARES ARE A GOOD BET FOR A REBOUND SAYS PETER PHILIPS A FUND MANAGER AT FIDELITY INVESTMENTS MANAGEMENT HK BOOK VALUE EQUALS 242 A SHARE BUT THE STOCK IS AT ONLY 210 DOLLAR FIGURES IN THIS ARTICLE HAVE BEEN CONVERTED TO US DOLLARS THE ADRS TRADE IN THE US AT 10 5/8 OFF 1/4 YESTERDAY WITH EACH ADR DENOTING FIVE SHARES HERE'S ANOTHER STORY FAMILIAR TO US INVESTORS COSTCUTTING HAS PUT AUSTRALIAN COMPANIES AT WHAT SOME SAY IS THEIR MOST EFFICIENT LEVEL IN 20 YEARS ARNOTTS IS AN EXAMPLE CONSIDERED THE NABISCO OF AUSTRALIA BECAUSE OF ITS DOMINANCE OF THE COUNTRY'S COOKIE MARKET THE COMPANY SAW PROFIT RISE 29 AFTER IT LAID OFF ABOUT 40 OF ITS WORKERS ARNOTTS IS THE OBJECT OF A HOSTILE TAKEOVER ATTEMPT BY CAMPBELL SOUP WHICH SAID YESTERDAY THAT IF THE TAKEOVER GOES THROUGH IT COULD TRIGGER THE DISPOSAL OF SOME OF ARNOTTS' BUSINESSES ANOTHER SUCCESSFUL COSTCUTTER IS ICI AUSTRALIA A 62OWNED ARM OF IMPERIAL CHEMICAL INDUSTRIES OF BRITAIN WHICH RECORDED 34 EARNINGS GROWTH FOR THE YEAR THROUGH SEPTEMBER DESPITE A 2 SALES DROP THAT WAS ALMOST ENTIRELY ATTRIBUTABLE TO COSTCUTTING SAYS PETER WETHERALL HEAD OF RESEARCH AT MCINTOSH & CO IN MELBOURNE AT THE EQUIVALENT OF 393 HE CALLS THE CHEMICAL MAKER'S STOCK A BUY AUSTRALIA'S COMPANIES STILL HAVE FURTHER TO REBOUND SO NEWCOMERS TO ITS STOCK MARKET SHOULD STILL HAVE FURTHER TO RIDE ANALYSTS SAY TEMPTED DON'T FORGET THE AUSTRALIAN MARKET'S PITFALLS NEITHER MAKERS OF CONSUMER PRODUCTS NOR COMMODITY PRODUCERS CAN EXPECT A QUICK SURGE IN DEMAND IN THE US PEOPLE STILL HESITATE TO BUY EXPENSIVE ITEMS AND US MANUFACTURERS HAVE SLASHED RAWMATERIAL INVENTORIES SAYS CHARLES CLOUGH CHIEF STRATEGIST FOR MERRILL LYNCH LIKEWISE AUSTRALIAN PRICING IS EXTREMELY COMPETITIVE POLITICS ALSO IS A QUESTION MARK THE PROSPECT OF PRESIDENT BUSH'S ELECTORAL DEFEAT HURT US STOCKS UNTIL INVESTORS GOT USED TO THE IDEA OF A DEMOCRATIC ADMINISTRATION AUSTRALIANS ARE HOLDING BACK FROM STOCKS UNTIL THE FATE OF THE RULING AND HARDPRESSED LABOR PARTY BECOMES CLEAR THE GOVERNMENT MUST HOLD AN ELECTION BY MAY AND LIKE A DISTANT COUSIN OF BILL CLINTON AUSTRALIAN OPPOSITION LEADER JOHN HEWSON HAS ALREADY SEIZED MOMENTUM IN HIS COUNTRY'S ECONOMIC DEBATE HIS CONSERVATIVE COALITION HAS DRAFTED A 500PAGE PLATFORM CALLING FOR DRASTIC CHANGES HIS COALITION MIGHT PRIVATIZE A LOT OF COMPANIES AN AGENDA THAT WOULD DWARF THE GOVERNMENT'S RECENT SALE OF 25 OF NATIONAL AIRLINE QANTAS NO MATTER THAT A DRASTIC BOUT OF PRIVATIZATION COULD FLOOD AUSTRALIA'S STOCK MARKET WITH NEW SHARES FOR MR HEWSON THE IDEOLOGY OF PRIVATIZATION IS MORE IMPORTANT THAN THE PRICE AT WHICH IT IS ACHIEVED SAYS BARING SECURITIES BUT INVESTORS WILLING TO WEATHER THE TURBULENCE OF AN OPPOSITION VICTORY COULD COME OUT WITH A POCKETFUL OF NEW AUSSIE BLUECHIPS PERHAPS INCLUDING SHARES OF THE COUNTRY'S SOPHISTICATED TELECOMMUNICATIONS SYSTEM AMERICANS LOOKING FOR DEALS IN AUSTRALIA HAVE TO TAKE SOME IMPORTANT DIFFERENCES INTO ACCOUNT US INVESTORS WHO BUY AUSTRALIAN SHARES EXPOSE THEMSELVES TO ANY FURTHER WEAKENING OF THE SINKING AUSTRALIAN DOLLAR THE CURRENCY HAS SLIPPED MORE THAN 11 TO 674 US CENTS SINCE THE BEGINNING OF 1992 THAT TREND HAS WHACKED THE VALUE OF AUSTRALIAN HOLDINGS IN US DOLLAR TERMS THE GOOD NEWS HOWEVER IS THAT HIGHER COMMODITY PRICES ARE EXPECTED BY SOME ANALYSTS TO SAVE AUSTRALIA'S DOLLAR FROM A CONTINUED DROP BARCLAYS DE ZOETE WEDD PREDICTS THE CURRENCY WILL BE WORTH 725 US CENTS BY MARCH BUYERS OF AUSTRALIAN STOCKS WON'T BE REPEATING THE US RUSH INTO STOCKS TO AVOID LOW INTEREST RATES SAYS MARK FULTON A STRATEGIST AT COUNTY NATWEST SECURITIES AUSTRALIA IN SYDNEY INVESTORS CAN GET 59 RETURNS ON 90DAY BANK BILLSAUSTRALIA'S WIDELY HELD MONEYMARKET SECURITY THAT COMPARES WITH A RECENT AVERAGE 38 DIVIDEND YIELD ON STOCKS AS CALCULATED BY THE AUSTRALIAN STOCK EXCHANGE BASED ON ACTUAL PAYOUTS FOR 1992 BASED UPON ESTIMATED DIVIDENDS FOR THIS YEAR JAMES CAPEL & CO SAYS THE DIVIDEND YIELD WORKS OUT TO AROUND 44 FOR FOREIGN INVESTORS WHAT'S GOING ON IS A SIGNIFICANT CHANGE SAYS BRUCE ROLTH HEAD OF RESEARCH AT SALOMON BROTHERS IN SYDNEY IT'S STRUCTURAL AND IT'S LONGTERM WE'LL ONLY SEE THE BENEFITS OF IT ALL IN ONE OR TWO YEARS SNATCHING DEFEAT FROM THE JAWS OF VICTORY SHORT SELLERS SAW 1992 GO DOWN THE DRAIN AS A TERRIBLE FOURTH QUARTER LEFT THEM IN THE RED FOR THE YEAR THE ROCKBRIDGE SHORT SELLERS INDEX OF 20 LEADING SHORT SELLERS WHO IN ESSENCE BET ON STOCKS TO DECLINE WAS DOWN 37 FOR 1992 AFTER BEING UP 146 THROUGH SEPTEMBER THE INDEX IS COMPILED BY MICHAEL R LONG GENERAL PARTNER OF ROCKBRIDGE PARTNERS A CHARLOTTE NC PARTNERSHIP THAT INVESTS WITH SHORTSELLING MANAGERS THE SHORTS BORROW STOCK AND IMMEDIATELY SELL IT EXPECTING TO PROFIT FROM A PRICE DECLINE THAT WOULD ALLOW THEM TO RETURN CHEAPER SHARES TO THE LENDER LATER ON THERE IS DEFINITELY A FEELING OF BATTLE FATIGUE AMONG SHORTS MR LONG SAYS BUT I THINK MANY ALSO SMELL BLOOD IN THE WATER HOPEFULLY NOT THEIR OWN 9301130064 930113 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC ROVER GROUP AND EC PANEL NEGOTIATING OVER PENALTIES AUTO MAKER ROVER GROUP PLC SAID IT IS NEGOTIATING PENALTIES WITH THE EUROPEAN COMMUNITY COMMISSION FOR ITS FORMER PRACTICE OF LIMITING DISCOUNTS ITS DEALERS COULD GIVE TO CAR BUYERS ROVER IS OWNED BY UK INDUSTRIAL GROUP BRITISH AEROSPACE PLC THE GUARDIAN A BRITISH NEWSPAPER REPORTED THAT THE COMMISSION MAY FINE ROVER AS MUCH AS 25 MILLION 39 MILLION AND TAKE IT TO COURT TO RECOVER 65 MILLION AS COMPENSATION FOR OVERCHARGED BUYERS THE 65 MILLION FIGURE WAS CALLED UNREALISTIC BY A ROVER SPOKESMAN ROVER OFFERED TO PAY 500000 COMPENSATION BUT THIS WAS DISMISSED AS INADEQUATE BY THE COMMISSION THE SPOKESMAN SAID A COMMISSION SPOKESMAN CONFIRMED IT WAS TALKING WITH ROVER BUT REFUSED TO COMMENT OR TO CONFIRM IT FORMALLY OPENED AN INQUIRY UNDER ITS COMPETITION RULES WHICH BAR PRICEFIXING AND MARKETSHARING ARRANGEMENTS BY COMPANIES ROVER LIMITED DISCOUNTS BY ITS DEALERS IN 1989 AND 1990 ROVER'S BOARD STOPPED THE PRACTICE WHEN IT HEARD ABOUT IT AND IMMEDIATELY INFORMED THE EC COMMISSION THE SPOKESMAN SAID 9301130063 930113 MCDONNELL PLANS TO CLAIM PAYMENT FROM AIR FORCE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP IS EXPECTED TO CLAIM IT IS OWED AS MUCH AS 12 BILLION BY THE AIR FORCE FOR PAST DISRUPTIONS OF THE C17 MILITARY TRANSPORT ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS FEDERAL OFFICIALS HAVE BEEN NOTIFIED THE CLAIM IS FORTHCOMING AND ARE CONTEMPLATING PAYMENT OF SOME OF ITS ELEMENTS THE DEVELOPMENT SEEMS CERTAIN TO RESURRECT CHARGES IN CONGRESS AND ELSEWHERE THAT THE GOVERNMENT IS ENTERTAINING A MAJOR BAILOUT OF MCDONNELL DOUGLAS AND THE TROUBLED C17 PROGRAM IN THE FIRST THREE QUARTERS OF 1992 THE ST LOUIS COMPANY TOOK 383 MILLION IN PRETAX CHARGES TO EARNINGS RELATED TO RISING COSTS ON THE FIXEDPRICE PROGRAM AT THE PENTAGON AN INTERNAL INVESTIGATION OF THE AIR FORCE'S HANDLING OF CONTRACTS FOR THE AIRCRAFT IS DUE TO BE COMPLETED SOON AND YESTERDAY DONALD J YOCKEY UNDERSECRETARY OF DEFENSE FOR ACQUISITION WAS BRIEFED ON THE STATE OF THE C17 ALTHOUGH HE COULDN'T BE REACHED FOR COMMENT I'M SURE THE WORD BAILOUT' WILL COME OUT AGAIN SAID AIR FORCE SPOKESMAN LT COL JOHN KIRKWOOD WHO ACKNOWLEDGED THAT SOME OFFICIALS IN THE SERVICE HAVE BEEN EXPECTING A NEW CLAIM IN EXCESS OF 500 MILLION FROM THE COMPANY HOWEVER HE SAID REGULATIONS ALLOW SUCH CLAIMS TO CORRECT POSSIBLE INEQUITIES AND IT'S NOT AN UNUSUAL ACTION MCDONNELL DOUGLAS HAS ALREADY FILED NUMEROUS CLAIMS ON THE C17 PROGRAM AND THE COMPANY HAS SAID IT EXPECTS TO RECEIVE AT LEAST 208 MILLION FROM THOSE CLAIMS LT COL KIRKWOOD SAID THE AIR FORCE ASKED THE COMPANY LAST YEAR TO BEGIN SUBMITTING ITS PROPOSALS IN BUNDLES RATHER THAN INDIVIDUALLY HE SAID A CLAIM RANGING IN SIZE FROM 900 MILLION TO 12 BILLION THE SIZE RANGE SOME PEOPLE EXPECT FOR THE NEW CLAIM COULD TAKE BETWEEN SIX MONTHS AND A YEAR TO PROCESS MR KIRKWOOD ALSO SAID THAT APART FROM ANY TREATMENT OF THE LATEST CLAIM LOWLEVEL PENTAGON OFFICIALS ARE ALTERING THE DELIVERY TIMELINE FOR FOUR TRANSPORTS TO SMOOTH OUT DELIVERY FLOW HE SAID SIX MONTHS OF DELIVERIES COULD BE AFFECTED A SPOKESMAN FOR MCDONNELL DOUGLAS DECLINED COMMENT BUT PEOPLE FAMILIAR WITH THE DEVELOPMENT SAY LEGAL AND ACCOUNTING OFFICIALS AT THE COMPANY RECENTLY WERE ORDERED TO ACCELERATE PLANS TO PREPARE AN OMNIBUS CLAIM AGAINST THE AIR FORCE FOR PAST ACTIONS THAT DELAYED AND DISRUPTED THE PROGRAM AT A COST OF HUNDREDS OF MILLIONS OF DOLLARS TO THE COMPANY AMONG OTHER CLAIMS THE COMPANY WILL SAY THAT A 1987 AIR FORCEINFLUENCED DECISION TO HAVE LOCKHEED CORP PRODUCE THE WING FOR THE AIRCRAFT AN ORDER THAT WAS NEGATED AFTER THE ARRANGEMENT WITH LOCKHEED FAILED TO PAN OUT COST THE CONTRACTOR HUNDREDS OF MILLIONS OF DOLLARS ANOTHER ELEMENT IN THE HUGE CLAIM COULD BE A MCDONNELL DOUGLAS ALLEGATION THAT A 1990 ZEROFUNDING YEAR IN WHICH THE PROGRAM RECEIVED NO MONEY ULTIMATELY WAS COSTLY FOR THE COMPANY THE PROGRAM HAS SUFFERED FROM A ROCKY FUNDING HISTORY AFTER A SERIES OF DEVELOPMENT PROBLEMS THAT LED TO THE EXCESSIVE COSTS THE MOST RECENT PROBLEM INVOLVED BASIC WING STRUCTURES THAT CRUMPLED DURING A STRESS TEST ONE CONGRESSIONAL INVESTIGATOR ARGUED THAT MOST OF THE MCDONNELL DOUGLAS CLAIMS NOW BEING BUNDLED ARE OLD MOST OF THESE CLAIMS HAVE BEEN MADE IN THE PAST AND RULED ON AND REJECTED AND THE GENERAL ACCOUNTING OFFICE HAS DOCUMENTED THAT HE SAID SEPARATELY DEFENSE OFFICIALS HAVE LEVELED CHARGES OF IMPROPER ACCOUNTING ON THE C17 IN A LETTER TO THE COMPANY NOV 19 THE DEFENSE CONTRACT MANAGEMENT COMMAND SAID THAT IT HAS CONTINUING CONCERNS OVER 4244 MILLION IN ENGINEERING LABOR COSTS IT BELIEVES WERE IMPROPERLY BILLED WITHIN THE PROGRAM A SPOKESMAN AT MCDONNELL DOUGLAS'S C17 PLANT IN LONG BEACH CALIF SAID THE COMPANY DISAGREES WITH THE GOVERNMENT ASSESSMENT THE MILITARY HAS SAID IT WILL WITHHOLD PROGRESS PAYMENTS TO THE COMPANY ON THE PROGRAM UNTIL IT GETS A SATISFACTORY EXPLANATION THOMAS E RICKS IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9301130062 930113 TECHNOLOGY BRIEF DELL COMPUTER CORP AUDIO VIDEO ARE INCLUDED IN THREE NEW PC SYSTEMS DELL COMPUTER CORP TRYING TO CAPITALIZE ON THE TREND TOWARD SOCALLED MULTIMEDIA COMPUTING INTRODUCED THREE PERSONAL COMPUTERS SYSTEMS THAT COMBINE AUDIO AND VIDEO FUNCTIONS WITH TRADITIONAL COMPUTING THE SYSTEMS ARE TARGETED AT THREE TYPES OF USERS SCHOOLAGED CHILDREN OLDER STUDENTS AND ADULTS WORKING AT HOME AND RANGE IN PRICE FROM 1499 TO 2499 FOR TYPICAL CONFIGURATIONS THE AUSTIN TEXAS PC MANUFACTURER SAID THE SYSTEMS ARE DESIGNED TO BE USED RIGHT OUT OF THE BOX AND COME WITH A WIDE SELECTION OF SOFTWARE ALREADY INSTALLED 9301130061 930113 TECHNOLOGY BRIEF ENZO BIOCHEM INC THREE KEY PATENTS GRANTED TO AID GENETIC RESEARCH ENZO BIOCHEM INC SAID THE US PATENT OFFICE GRANTED THE NEW YORK COMPANY THREE KEY PATENTS THAT WILL ENABLE IT TO BROADEN ITS WORK IN THE NEW GENETIC ANTISENSE FIELD ENZO WAS NOTIFIED ABOUT THE FIRST PATENT IN AUGUST 1992 TWO SUBSEQUENT PATENTS TO BE ISSUED SOON WILL GIVE ENZO EXCLUSIVE RIGHTS TO SPECIFIC PROCEDURES AND PRODUCTS INVOLVED IN GENETIC ANTISENSE RESEARCH ANTISENSE TECHNOLOGY PERMITS SCIENTISTS TO ATTACH A GENE TO A CELL THAT WOULD REGULATE THE FUNCTION OF ANOTHER GENE IN THE SAME CELL ANTISENSE GENES HAVE THE POTENTIAL OF BLOCKING PROGRESS OF DEFECTIVE GENES RESEARCHERS BELIEVE THE TECHNOLOGY COULD EVENTUALLY BE USED TO TREAT VARIOUS TYPES OF CANCER AIDS AND OTHER DISEASES DR ELAZAR RABBANI ENZO PRESIDENT TOLD SHAREHOLDERS THAT PRELIMINARY DISCUSSIONS HAVE ALREADY BEGUN WITH COMPANIES INTERESTED IN LICENSING THE TECHNOLOGY FOR THERAPEUTIC AND AGRICULTURAL PURPOSES ENZO LICENSES GENETIC ANTISENSE TECHNOLOGY FROM THE RESEARCH FOUNDATION OF THE STATE UNIVERSITY OF NEW YORK 9301130060 930113 WHAT'S NEWS WORLDWIDE BUSH MOVED CLOSER TO TAKING MILITARY ACTION AGAINST IRAQ US OFFICIALS SAID BUSH IS INCLINED TO LAUNCH A LIMITED MILITARY STRIKE UNLESS THERE IS A MARKED CHANGE IN IRAQI ACTIONS IN THE NEXT FEW DAYS IN PARTICULAR ITS CONTINUED MOVEMENT OF ANTIAIRCRAFT MISSILES IN NORTHERN AND SOUTHERN IRAQ US OFFICIALS INDICATED LAST NIGHT THAT ORDERS FOR A MILITARY MOVE HAVEN'T YET BEEN ISSUED AND THAT BUSH IS STILL PREPARED TO STOP SHORT OF MILITARY ACTION BAGHDAD IN A LETTER TO THE UN SECURITY COUNCIL OFFERED TO HOLD TALKS ON A RANGE OF ISSUES IRAQ'S UN REPRESENTATIVE SAID THE LETTER CONVEYED A DESIRE TO DEFUSE THE CRISIS UN SOURCES SAID RENEWED ALLIED AIR STRIKES COULD BE TRIGGERED OVER IRAQ'S CONTINUED INSISTENCE THAT UN WEAPONS INSPECTORS USE IRAQI PLANES THEY SAID IRAQ MAY BE GIVEN ONE MORE CHANCE TO BACK DOWN ON THIS ISSUE A US MARINE WAS KILLED IN A FIREFIGHT WITH SOMALI GUNMEN IN MOGADISHU A PENTATON OFFICIAL SAID IT WAS THE FIRST DEATH OF A AMERICAN SERVICEMAN SINCE THE US FORCES ARRIVED IN SOMALIA ON DEC 9 TO HELP IN A FAMINE RELIEF EFFORT BOSNIAN SERB LEADER KARADZIC SAID HE ACCEPTED INTERNATIONAL MEDIATORS' PEACE PROPOSALS APPARENTLY DROPPING DEMANDS FOR A SEPARATE STATE WITHIN BOSNIA BUT AN OFFICIAL OF THE BOSNIAN SERB REPUBLIC PREDICTED LAWMAKERS WOULDN'T BACK THE AGREEMENT REACHED BY KARADZIC IN GENEVA A GROUNDED TANKER FINALLY BROKE UP ON THE SHORES OF THE SHETLAND ISLANDS AFTER A WEEK OF POUNDING BY NORTH SEA STORMS THOUGH A HUGE SPILL HAS RESULTED FROM THE DUMPING OF THE SHIP'S 25 MILLIONGALLON CARGO OF OIL OFFICIALS SAID MUCH OF THE CRUDE HAS BEEN DISPERSED A BERLIN COURT SAID IT WOULD ABANDON THE MANSLAUGHTER TRIAL OF FORMER EAST GERMAN LEADER HONECKER OVER KILLINGS AT THE BERLIN WALL JUDICIAL AUTHORITIES CONCLUDED THAT IMPRISONING THE TERMINALLY ILL POLITICIAN VIOLATES HIS HUMAN DIGNITY HONECKER 80 COULD BE RELEASED TODAY IF ANOTHER COURT LIFTS A SECOND WARRANT HE PLANS TO FLY TO CHILE STATE MEDICAL BOARDS ARE FAILING TO CRACK DOWN ON BAD DOCTORS OFTEN CONCERNING THEMSELVES MORE WITH PHYSICIANS' CAREERS THAN PATIENTS' WELLBEING ACCORDING TO A NEW STUDY THE CRITICAL REPORT WAS PUBLISHED BY A RESEARCH AND LOBBYING ORGANIZATION A FEDERAL GRAND JURY REFUSED TO INDICT VIRGINIA SEN CHARLES ROBB IN A POLICAL EAVESDROPPING CASE TARGETING A DEMOCRATIC RIVAL GOV DOUGLAS WILDER ROBB HAD DENIED ANY WRONGDOING IN CONNECTION WITH THE LEAKING OF A TRANSCRIPT OF A CARPHONE CONVERSATION BETWEEN WILDER AND A SUPPORTER THE WHITE HOUSE HAS RECEIVED A COPY OF BUSH'S 1988 VIDEOTAPED INTERVIEW FROM IRANCONTRA PROSECUTORS AND WILL MAKE IT PUBLIC IN A FEW DAYS PRESIDENTIAL SPOKESMAN FITZWATER SAID BUSH ALSO PLANS TO MAKE PUBLIC RELEVANT PARTS OF THE DIARY HE KEPT AT THAT TIME ACCORDING TO FITZWATER A CONGRESSIONAL INVESTIGATION FOUND NO CREDIBLE EVIDENCE THAT REPUBLICANS CONSPIRED WITH IRAN IN 1980 TO DELAY THE RELEASE OF AMERICAN HOSTAGES UNTIL AFTER THE US ELECTION THE FINDINGS WHICH ARE TO BE RELEASED TODAY SEEK TO DISMISS ALLEGATIONS OF THE DEAL KNOWN AS THE OCTOBER SURPRISE PROMINENT GOP CONSERVATIVES FORMED AN ADVOCACY GROUP THAT THEY WILL USE TO CONSOLIDATE THEIR POWER THE GROUP INCLUDES HUD SECRETARY KEMP FORMER EDUCATION SECRETARY BENNETT AND FORMER UN AMBASSADOR KIRKPATRICK SOME 900 HAITIAN REFUGEES ARE EXPECTED TO BE REPATRIATED FROM CUBA OVER THE NEXT THREE DAYS IN FLIGHTS FINANCED BY THE UN AND COORDINATED BY RED CROSS OFFICIALS IN BOTH CUBA AND HAITI A PAKISTANI GOVERNMENT PANEL ELECTED OPPOSITION LEADER BENAZIR BHUTTO TO BE ITS CHAIRWOMAN DESPITE THE UNEXPECTED MOVE BY THE LOWER HOUSE'S FOREIGN AFFAIRS COMMITTEE BHUTTO SAID SHE STILL REGARDED THE LEGISLATURE AND THE SHARIF GOVERNMENT AS PRODUCTS OF A RIGGED ELECTION ITALY DECRIMINALIZED THE PERSONAL USE OF DRUGS CONCEDING THE FAILURE OF A 1990 LAW UNDER THE NEW MEASURE DRUG USERS WILL BE PENALIZED THROUGH REVOCATION OF THEIR DRIVER'S LICENSES PASSPORTS OR PERMITS 9301130059 930113 MARKETING MARLBORO SMOKERS DEFECT TO DISCOUNTERS BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL CHEAP SMOKES ARE INFLICTING LASTING DAMAGE ON THE MARLBORO MAN SHIPMENTS OF MARLBORO CIGARETTES THE NATION'S MOST PROFITABLE CONSUMER PRODUCT AND THE TOBACCO INDUSTRY'S NO 1 BRAND FELL 56 LAST YEAR IT WAS THE STEEPEST DROP IN THE BRAND'S HISTORY AND SHARPER THAN THE INDUSTRY'S 04 DROP OVERALL MARLBORO MARKETER PHILIP MORRIS COS MADE THAT DISCLOSURE FOR THE FIRST TIME YESTERDAY IN A PRIVATE BRIEFING PACKED WITH BIG INVESTORS PHILIP MORRIS EXECUTIVES NOW ADMIT THEY UNDERESTIMATED THE WIDESPREAD WILLINGNESS OF SMOKERS TO SWITCH TO BARGAINBASEMENT CIGARETTES INDEED THE COMPANY CONTINUED TO RAISE MARLBORO PRICES SEVEN TIMES IN ABOUT TWO YEARS BY ONE COUNT EVEN AS ONCELOYAL CUSTOMERS WERE TRADING DOWN TO SUCH CHEAP RIVALS AS RJ REYNOLDS' MONARCH AND NOIMAGE GENERICS WHEN PHILIP MORRIS BELATEDLY ENTERED THE OFFPRICE MARKET IN EARNEST TWO YEARS AGO MOREOVER IT MAY HAVE BEEN TOO SUCCESSFUL AFTER GAINING THE TOP SPOT IN 1991 IT FELL BEHIND RJ REYNOLDS LAST YEAR AND THE APPEAL OF PHILIP MORRIS'S INEXPENSIVE BRANDS INCLUDING BASIC AND CAMBRIDGE MAY HAVE ONLY ACCELERATED MARLBORO'S SLIDE HAVING BECOME A DOMINANT PLAYER IN THE DISCOUNT BUSINESS PHILIP MORRIS MUST NOW WALK A FINE LINE BETWEEN SELLING WHAT SMOKERS ARE DEMANDING AND PUSHING ITS FAR MORE PROFITABLE FULLPRICED BRANDS IT'S HARD TO GET THE GENIE BACK IN THE BOTTLE SAYS GARY D BLACK AN ANALYST AT SANFORD C BERNSTEIN & CO THE DIFFERENCE IN PROFIT LEVELS IS STAGGERING THE COMPANY NETS 55 CENTS OF PROFIT ON EACH PACK OF MARLBORO COMPARED WITH ONLY FIVE CENTS A PACK FOR ITS CHEAPEST LINES MR BLACK ESTIMATES AND MARLBORO SELLS SOME 62 BILLION PACKS IN THE US ALONE EACH YEAR DISCOUNT SMOKES CONSTITUTE ALMOST ONETHIRD OF THE VOLUME SALES OF THE NATION'S TOTAL 465 BILLION IN RETAIL CIGARETTE SALES THE RESULTING IMPACT ON PHILIP MORRIS PROFIT HAS ALARMED SOME SHAREHOLDERS SINCE THE DOMESTIC TOBACCO BUSINESS ACCOUNTS FOR NEARLY HALF OF PHILIP MORRIS'S TOTAL PROFIT PHILIP DUBUQUE A PORTFOLIO MANAGER WITH INVESCO FUNDS GROUP INC IN DENVER SOLD OFF ONE MILLION SHARES OF PHILIP MORRIS STOCK LAST MONTH THE COMPANY'S DOMESTIC TOBACCO WEAKNESS WAS THE MAJOR REASON I DECIDED TO SELL HE SAYS WITHOUT A HEALTHY MARLBORO MAN THERE IS MOUNTING CONCERN THAT PHILIP MORRIS WON'T BE ABLE TO SUSTAIN THE ANNUAL 20 GROWTH IN EARNINGS THAT IT CUSTOMARILY ACHIEVES THE COMPANY SAYS IT HAS MET THAT GOAL IN 1992 BUT IS PROVIDING LITTLE GUIDANCE FOR 1993 HOWEVER WILLIAM I CAMPBELL CHIEF EXECUTIVE OF PHILIP MORRIS'S US TOBACCO UNIT TOLD INSTITUTIONAL INVESTORS YESTERDAY THAT HE SEES SIGNS THE MOMENTUM IN DISCOUNT BRANDS IS SLOWING HE ALSO POINTED OUT THAT MARLBORO'S DECLINE HAS BEEN LESS THAN THE DROP FOR FULLPRICE BRANDS OVERALL AND THAT RIVALS ARE LOSING VOLUME AT TWICE THE RATE OF MARLBORO STRUGGLING TO COMBAT EVIDENCE THAT THE SLIDE OF ITS FLAGSHIP MARLBORO BRAND HAS ACCELERATED IN RECENT MONTHS MR CAMPBELL TOLD INVESTORS YESTERDAY THAT THE TOBACCO BUSINESS IS STRONG AND GROWING AND THAT HEAVY PROMOTIONAL SPENDING ON MARLBORO HAS HELPED STEM DEFECTIONS TO CHEAPER CIGARETTES PHILIP MORRIS'S COMMENTS YESTERDAY AT A GOLDMAN SACHS & CO CONFERENCE WERE THE COMPANY'S LATEST ATTEMPT TO DOUSE A FIRE STORM THAT IGNITED LAST WEEK WHEN BERNSTEIN'S MR BLACK PUBLISHED A REPORT CITING DATA SHOWING THAT MARLBORO'S VOLUME DROPPED 9 AT SUPERMARKETS AND SOME CONVENIENCE STORES IN SEPTEMBER AND OCTOBER PHILIP MORRIS SAID THE BERNSTEIN NUMBERS COVER ONLY 60 OF THE MARKET AND FAIL TO FULLY TAKE INTO ACCOUNT THE FAST GROWING CONVIENCESTORE SEGMENT MR BLACK STANDS BY HIS NUMBERS CALLING THE DROP IN MARLBORO'S VOLUME ALARMING AND ADDING WE ARE SEEING AN ACCELERATION OF THAT TREND THE PRESSURES ON MARLBORO HAVE SPARKED INTERNAL BICKERING AT PHILIP MORRIS OVER HOW BEST TO DEAL WITH THE CHEAPER CIGARETTES MR CAMPBELL ADMITTED YESTERDAY THAT AS RECENTLY AS LAST FALL THE COMPANY WAS SURPRISED BY THE RAPID GROWTH OF THE CHEAPEST BRANDS SOME EXECUTIVES HAD ARGUED AGAINST THE STEADY SERIES OF PRICE INCREASES THAT PUSHED THE COST OF A PACK OF MARLBOROS PAST 2 BECAUSE IT PROVIDED AMPLE ROOM FOR COMPETITORS TO INTRODUCE PRODUCTS SUCH AS MONARCH WHICH WENT ON SALE LAST YEAR AT 99 CENTS A PACK IN SOME STORES PHILIP MORRIS HAS HAD A RATHER LIBERAL PRICING POLICY SAYS MARC COHEN AN ANALYST AT GOLDMAN SACHS THERE IS NO QUESTION THEY HELPED ACCELERATE THE MOVE TO DISCOUNTS EXECUTIVES AT PHILIP MORRIS DECLINE TO DISCUSS WHETHER INSIDERS CLASHED OVER THE RIGHT APPROACH SOMETHING AS IMPORTANT AS PRICING ALWAYS HAS INTERNAL DISCUSSIONS SAYS LAWRENCE S WEXLER SENIOR VICE PRESIDENT OF MARKETING PHILIP MORRIS EXECUTIVES FURTHER CLASHED OVER WHETHER THEY MAY HAVE ERRED BY PUTTING TOO MUCH QUALITY INTO DISCOUNT SMOKES THERE IS A FEELING INSIDE THE COMPANY THAT ITS CHEAP CIGARETTES ARE TOO GOOD IN QUALITY SAYS S LEIGH FERST AN ANALYST WITH PRUDENTIAL SECURITIES BY CONTRAST ONE INDUSTRY EXECUTIVE BELIEVES THAT RJ REYNOLDS A UNIT OF RJR NABISCO HOLDINGS INC INTENTIONALLY USED A HARSH BLEND OF TOBACCO FOR MONARCH TO DISCOURAGE SMOKERS FROM ABANDONING ITS FULLPRICE LINES SUCH AS WINSTON AN RJ REYNOLDS SPOKESWOMAN COUNTERS THAT ISN'T THE CASE BUT ADDS OBVIOUSLY THIS ISN'T OUR PREMIUM BLEND NICK KARAKAS A CONSULTANT WITH MARCUS DISTRIBUTORS IN ST LOUIS SAYS THAT PHILIP MORRIS SEEMS TO BE DEVOTING MORE AND MORE ATTENTION TO ITS CHEAPER PRODUCT LINE LATELY IN THE LAST FEW MONTHS HE SAYS SALESPEOPLE FROM MARLBORO'S CUTRATE LINES HAVE BEEN MAKING FREQUENT VISITS TO SMOKE SHOPS IN HIS AREA MR BLACK'S REPORT BEGAN A THREEDAY SELLOFF LAST WEEK THAT AT ONE POINT DROVE PHILIP MORRIS'S STOCK DOWN BY 7 IN ADDITION TO THE TROUBLING SALES REPORT PHILIP MORRIS AND OTHER TOBACCO STOCKS WERE HURT LAST WEEK BY REPORTS THAT ANTISMOKING GROUPS WOULD PUSH THE CLINTON ADMINISTRATION TO RAISE CIGARETTE TAXES AND BY AN ENVIRONMENTAL PROTECTION AGENCY STUDY CONCLUDING THAT SECONDHAND CIGARETTE SMOKE CAUSES CANCER PHILIP MORRIS STOCK CLOSED AT 75 YESTERDAY UP 875 CENTS MARLBORO EXECUTIVES SAY THEIR MAIN FOCUS WILL BE ON ITS FULLPRICE BUSINESS AND THAT IT PLANNED TO INCREASE ITS SHARE OF THE PREMIUM MARKET THE COMPANY SAYS IT PLANS TO MAINTAIN ITS SHARE OF THE DISCOUNT MARKET TOBACCO EXECUTIVES SAID THE MAIN FOCUS THIS YEAR WOULD BE ON PROFITS NOT MARKET SHARE COMPANY EXECUTIVES INSIST THEY ARE PLEASED WITH THE PERFORMANCE OF MARLBORO THE BRAND ITSELF IS DOING QUITE WELL WITHIN THE COMPETITIVE ENVIRONMENT SAID MR WEXLER THE MARKETING EXECUTIVE NONETHELESS HE ACKNOWLEDGED WE ALWAYS WANT TO SELL MORE MARLBOROS 9301130058 930113 REVIEW & OUTLOOK EDITORIAL BEYOND SADDAM SADDAM HUSSEIN IS DRAWING THE ALLIES CLOSE TO A REPLAY OF DESERT STORM PERHAPS IT IS TIME TO START THINKING ABOUT MOVING ON TO THE NEXT CHAPTER IN THE IRAQ DRAMA THAT WOULD INVOLVE A SERIOUS EFFORT BY THE ALLIES TO DEVELOP SUPPORT FOR AN IRAQI GOVERNMENT IN EXILE SUCH AN EFFORT WOULD GIVE WESTERN POLICY MAKERS A GOAL WITH THE POTENTIAL TO ACCOMPLISH SOMETHING LASTING AND GOOD AS IT IS NOW SADDAM IS SETTING THE AGENDA THE IRAQI DICTATOR'S SURFACETOAIR MISSILE DEPLOYMENTS A BAN ON PLANES CARRYING UN INSPECTION TEAMS AND SMALL RAIDS INTO KUWAIT ALL APPEAR TO BE A TESTING EXERCISE PERHAPS TIMED TO COINCIDE WITH THE ACCESSION OF A NEW US PRESIDENT RECALL THAT NIKITA KHRUSHCHEV DEVISED A SIMILAR TEST FOR JOHN KENNEDY WITH THE CUBAN MISSILE CRISIS A RECKLESS MOVE THAT MIGHT HAVE PROVOKED A DISASTER THE US OF COURSE IS NOT EAGER TO TAKE ON ANOTHER MILITARY ENGAGEMENT IF IT CAN AVOID DOING SO THE ACTION IN SOMALIA IS NOT A MAJOR TEST BUT IT DOES TIE UP SOME ADDITIONAL COMBAT AND LOGISTICAL FORCES AND SOME IN THE US MILITARY APPEAR TO BE CHAFING AT THE LACK OF CLEAR FOCUS LATELY ABOUT THEIR MISSION AS TO SADDAM'S PROVOCATIONS THE QUESTION IS WHAT PRECISELY SHOULD BE DONE ABOUT THEM THE ALLIES MOST LIKELY HAVE SUFFICIENT RESOURCES IN THE GULF TO PUNISH SADDAM FOR HIS VIOLATIONS IN SOUTHERN IRAQ WHO WOULD OBJECT SADDAM IS A CENTRIFUGAL FORCE AND SO LONG AS HE HOLDS POWER THE WEST IS PERIODICALLY GOING TO HAVE TO THROW A BUCKET OF CONTAINMENT OVER HIM OUR OWN PREFERENCE WOULD HAVE BEEN FOR PRESIDENT BUSH TO HAVE TAKEN PREEMPTIVE ACTION BACK IN OCTOBER WHEN REPORTS SURFACED OF SADDAM'S ILLEGAL ASSAULTS ON THE SHIITES IN THE SOUTHERN MARSHES VIOLATING THE ADMINISTRATION'S OWN MARKERS ON THE NOFLY ZONE PERHAPS IT WAS FEARED THAT THIS WOULD LOOK TOO POLITICAL SO CLOSE TO THE ELECTION WHICH THE ADMINISTRATION LOST IN ANY EVENT NOW WITH ANOTHER US ADMINISTRATION FORMING IT'S CLEAR THAT A NEW LONGTERM STRATEGY IS NEEDED HERE THE BUSH ADMINISTRATION'S NOTIONS THAT LETTING THE BAATH REGIME SURVIVE WOULD PROVIDE STABILIZING BALANCE TO THE REGION OR THAT SADDAM WOULD IMPLODE HAVE COME TO NAUGHT THIS IS SO FOR THE SAME REASON THAT THE EXTRAORDINARILY COURAGEOUS UN INSPECTION TEAMS HAVE MET SO MUCH FRUSTRATION TRYING TO DISMANTLE IRAQ'S NUCLEAR CHEMICAL AND BIOLOGICAL WEAPONS CAPACITY SADDAM IS A TOTALITARIAN HE AND THE BAATH PARTY RULE BY TERROR AND MURDER AND CONTROL OF THE COUNTRY'S MEDIA SERBIA'S MILOSEVIC SIMILARLY DEPLOYS PROPAGANDA TO STUN HIS POPULATION INTO PARANOIA OVER EXTERNAL ENEMIES WE WILL NEVER BE ABLE TO FULLY SUPERVISE OR CONTROL A RELATIVELY LARGE TOTALITARIAN STATE THERE ARE HOWEVER ARTICULATE AND INTELLIGENT IRAQIS IN EXILE WHO HAVE SHOWN THEY ARE COMMITTED TO OFFERING A DEMOCRATIC ALTERNATIVE TO SADDAM HUSSEIN UP TO NOW THESE INDIVIDUALS HAVE HAD TO OPERATE ON THE PERIPHERY OF WESTERN CONCERNS SEEKING AUDIENCES IN LONDON AND WASHINGTON WITH OFFICIALS WHO HAVE SEEMED DIFFIDENT AT TIMES ABOUT DEALING WITH THE IRAQI DEMOCRATS PERHAPS SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER WHO EXPRESSED A COMMITMENT TO SELFDETERMINATION MOVEMENTS DURING HIS PEACE CONFERENCE LAST FRIDAY WITH DEMOCRATIC NEOCONSERVATIVES WILL EXPLORE THIS ALTERNATIVE TO LIVING ON THE EDGE WITH SADDAM THE IRAQI DEMOCRATS COULD PROVIDE A UNIFYING AND NONWESTERN FOCUS FOR THE DISPARATE FORCES NOW BEARING DOWN ON SADDAM OR WISHING TO THESE ANTISADDAM FORCES INCLUDE THE WESTERN ALLIES THE SAUDIS AND TURKS WHOSE STABILITY IS MOST THREATENED BY SADDAM AND INDIVIDUALS OR CLASSES OF PEOPLE INSIDE IRAQ INCLUDING THE MILITARY WHO SUFFER MOST FROM THE BAATH MADNESS AS MATTERS STAND IT IS NOT DIFFICULT FOR SADDAM TO REPRESENT HIS COUNTRY'S CONDITION AS IRAQ AGAINST THE WEST AN IMAGE THAT FINDS RESONANCE IN BAZAARS THROUGHOUT THE ARAB WORLD IT WOULD BE MORE DIFFICULT FOR SADDAM TO PULL OFF THIS DECEPTION IF THE WORLD SAW THAT HIS OPPONENTS WERE IN FACT ARTICULATE IRAQIS AT SOME STAGE IN THE DEVELOPMENT OF THE NEW WORLD ORDER IT IS GOING TO BE NECESSARY TO DEMONSTRATE THAT SOMEONE OTHER THAN WESTERN PARTIES ARE ABLE TO REPRESENT AND ACHIEVE DEMOCRATIC GOALS INDEED SHOULD THE WEIGHT OF SUCH A BROADLY SUPPORTED MOVEMENT TOPPLE SADDAM IF SOVIET COMMUNISM CAN FALL HE CAN TOO THE UNITED NATIONS COULD BE BROUGHT IN TO SUPERVISE ELECTIONS AN EXPERIENCE THAT WOULD BENEFIT THE POLITICAL MATURITY OF THE UN'S OWN MEMBERSHIP BETTER THIS THAN REACTING THUMB IN THE DIKE TO HUMAN DISASTERS SUCH AS SOMALIA OR BOSNIA OR WORSE SIMPLY TURNING OUR BACKS ON THE WORLD AS IF THIS WERE STILL POSSIBLE ABSENT A CHANGE OF POLICY WHAT LIES BEYOND SADDAM ARE MORE SADDAMS IRAQIS IN EXILE ARE WILLING TO RESIST WE SHOULD ELEVATE THEIR CAUSE AND SUPPORT IT 9301130057 930113 CORPORATE FOCUS TANDY'S ROACH DECIDES TO TRY HIS HAND AT MEGASTORES ANALYSTS NERVOUS OVER CONCEPT WONDER ABOUT RADIO SHACK BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL IN THE LATEST MOVE OF A RISKY CORPORATE POKER GAME CHAIRMAN JOHN ROACH HAS CUT THE DECK AT STRUGGLING TANDY CORP AND PLACED A SIZABLE BET ON WHAT'S LEFT A BIG BUT STILL UNPROVEN RETAILING CONCEPT MR ROACH LAUNCHED A MAJOR SHAKEUP OF THE FORT WORTH TEXAS ELECTRONICS AND COMPUTER RETAILER OVER THE WEEKEND HE ANNOUNCED THE PROPOSED SPINOFF OF TANDY'S TECHNOLOGY AND MANUFACTURING OPERATIONS INTO A SEPARATE COMPANY WITH 15 BILLION IN ANNUAL SALES AND THE PLANNED CLOSING OF 100 UNPROFITABLE BRANDNAME ELECTRONICS STORES WHILE THE MOVES WERE LARGELY HAILED ON WALL STREET WHERE WEAK EARNINGS AND A TEPID STOCK PRICE HAVE MADE TANDY A MAJOR DISAPPOINTMENT IN RECENT YEARS THE SHAKEUP NEVERTHELESS IS A RISKY MOVE FOR THE COMPANY MR ROACH IS ABANDONING THE COMPANY'S AMBITIOUS ATTEMPTS TO BECOME A MAJOR TECHNOLOGY CREATOR ALONG THE LINES OF AN APPLE COMPUTER INC AND IS BETTING THE COMPANY'S FUTURE IN PART ON A MEGASTORE RETAILING CONCEPT THAT STILL MAKES ANALYSTS NERVOUS ANALYSTS WERE ALSO CONCERNED ABOUT WHAT MR ROACH DIDN'T DO NAMELY SOMETHING TO IMPROVE THE FLAGGING FORTUNES OF THE COMPANY'S 7000STORE RADIO SHACK CHAIN THE DOWDY FLAGSHIP THAT IS AT ONCE THE COMPANY'S BIGGEST ASSET AND ITS MOST CONSISTENT DISAPPOINTMENT RADIO SHACK WHICH PROVIDES ABOUT 83 OF TANDY'S RETAIL SALES IS LARGELY RESPONSIBLE FOR THE FACT THAT SALES AT THE COMPANY'S STORES OPEN FOR AT LEAST A YEAR HAVE DECLINED IN EACH OF THE LAST TWO FISCAL YEARS THE LATEST RESTRUCTURING WHICH COMPANY INSIDERS SAY IS MR ROACH'S BRAINCHILD FOLLOWS A LONGSTANDING PATTERN OF SPINOFFS AT TANDY OVER THE YEARS TANDY UNITS HAVE BEEN TRANSFORMED INTO SUCH WALL STREET DARLINGS AS BOMBAY CO A SPECIALTY FURNITURE RETAILER AND TANDYCRAFTS INC A HOME IMPROVEMENTS COMPANY OTHER SPINOFFS INCLUDE PIER 1 IMPORTS INC AND COLOR TILE INC TANDY HAS KIND OF HAD A HISTORY OF REINVENTING ITSELF OVER THE YEARS MR ROACH SAID THIS ALLOWS THE COMPANY TO FOCUS WITH A PASSION THE PASSION THAT MR ROACH HAS CHOSEN IS RETAILING ON A GRAND SCALE THE COMPANY SAID IT WILL CLOSE NEARLY A QUARTER OF ITS SMALL MCDUFF'S AND VIDEOCONCEPTS STORES CHAINS THAT HAVE BEEN HAMMERED BY THE RECENT EXPLOSION OF SUPERSTORE CONSUMER ELECTRONICS OUTLETS SUCH AS CIRCUIT CITY STORES INC AND BEST BUY CO AND FOCUS ATTENTION ON ITS COMPUTER CITY AND INCREDIBLE UNIVERSE CHAINS MR ROACH SAID TANDY WILL OPEN AS MANY AS 32 COMPUTER CITY SUPERSTORES OVER THE NEXT TWO YEARS ALONG WITH SEVERAL NEW INCREDIBLE UNIVERSE MEGASTORES INCREDIBLE UNIVERSE SPECIALIZES IN CONSUMER ELECTRONIC PRODUCTS AND HOME APPLIANCES ANALYSTS PRAISED THE DECISION ON MCDUFF'S AND VIDEOCONCEPTS WHICH THEY SAY HAVE FAILED TO KEEP PACE WITH CHANGES IN THE WAY CONSUMERS BUY ELECTRONICS EQUIPMENT SUPERSTORES CLEARLY ARE WINNING THE DAY SAID DAVID COURSEY EDITOR OF THE PC LETTER AN INDUSTRY NEWSLETTER PEOPLE ARE LOOKING FOR HYPER SELECTION HYPER CONVENIENCE AND HOPEFULLY HYPER LOW PRICES SO FAR COMPUTER CITY HAS RECEIVED HIGH MARKS FOR FILLING THAT BILL AND AGGRESSIVELY GRABBING BUSINESS IN THE NATION'S BIGGEST CONSUMERBUYING MARKETS THE COMPANY THOUGH HAS FACED STRONG OPPOSITION FROM DALLASBASED COMPUSA INC THE NATION'S LARGEST COMPUTER SUPERSTORE OPERATOR BUT DESPITE MR ROACH'S INSISTENCE THAT THE FIRST TWO INCREDIBLE UNIVERSE MONSTER STORES HAVE HIT THE MIDDLE PART OF THE COMPANY'S EARNINGS FORECASTS WHICH WEREN'T DISCLOSED TO THE PUBLIC FEW INDUSTRY WATCHERS ARE CONVINCED INCREDIBLE UNIVERSE SUPPLIERS ATTENDING THE CONSUMER ELECTRONICS SHOW IN LAS VEGAS EARLIER THIS MONTH WERE HEARD GROUSING ABOUT WEAK ORDERS AND ANALYSTS WHO HAVE STUDIED THE ISSUE SAY THE TWO STORES ALREADY OPENED DESPITE HEAVY PROMOTIONAL EFFORTS HAVE BEEN POPULATED MORE BY LOOKERS THAN BUYERS IN ADDITION PEOPLE CLOSE TO THE COMPANY SAY INCREDIBLE UNIVERSE MANAGERS HAVE QUIETLY BEGUN CIRCULATING THEIR RESUMES BURNED OUT BY GRANDOPENING WORK SCHEDULES THAT HAVE STRETCHED THE STAFF THIN I CAN'T POSSIBLY FATHOM IN MY MIND THAT THEY COULD BE MAKING A PROFIT SAID DAVID GOLDSTEIN A DALLAS RETAIL CONSULTANT WHO VISITS THE INCREDIBLE UNIVERSE STORE IN ARLINGTON TEXAS AND TRACKS CASHREGISTER ACTIVITY AND PARKINGLOT TRAFFIC I AM VERY SKEPTICAL ABOUT ITS SUCCESS ADDS SEYMOUR MERRIN A COMPUTER INDUSTRY CONSULTANT IN PALO ALTO CALIF THESE STORES DO NOT APPEAR TO BE HACKING IT MR ROACH WHO ADOPTED THE LAUNCHING OF THE INCREDIBLE UNIVERSE AS A PERSONAL PROJECT ANGRILY DISMISSES THE SPECULATION ABOUT THE UNIT'S PERFORMANCE IT'S A VERY BAD MISCHARACTERIZATION OF THE FACTS HE SAYS ALTHOUGH HE DECLINES TO GIVE ANY SPECIFICS ABOUT THE MUCHBALLYHOOED STORE OPENINGS MR ROACH ALSO BRISTLES AT SUGGESTIONS THAT HE MISSED A CHANCE TO REMAKE RADIO SHACK HE NOTES THAT TANDY HAS SPENT MOST OF THE PAST YEAR ON FACELIFTS FOR RADIO SHACK OUTLETS TRANSFORMING THE CHAIN STRATEGICALLY FROM A COLLECTION OF TECHNOLOGY STORES TO WHAT THE COMPANY TERMS THE ULTIMATE ELECTRONICS CONVENIENCE STORE WE FEEL LIKE WE'RE MAKING AN OFFERING TO THE CUSTOMER THAT IS IN KEEPING WITH THE TIMES HE SAYS THE RESTRUCTURING MAKES MR ROACH'S RETAILING BETS MORE IMPORTANT THAN EVER SINCE HE HAS TURNED TANDY INTO A PURE RETAILING PLAY WHILE ANALYSTS NOTED THAT PROFIT MARGINS IN THE SEVERED MANUFACTURING BUSINESSES WERE THIN THE OPERATIONS PROVIDED A HEDGE AGAINST SLOW TIMES BECAUSE THE ELECTRONICS MANUFACTURING UNIT SOLD TWOTHIRDS OF ITS MERCHANDISE TO CUSTOMERS OTHER THAN TANDY IT COULD OFTEN STAY BUSY EVEN IF TANDY'S OWN RETAIL OUTLETS WERE FALTERING THE SPINOFF CALLED TE ELECTRONICS INC WILL CONTINUE TO SUPPLY TANDY OUTLETS WITH COMPUTERS AND OTHER CONSUMER ELECTRONICS AS WELL AS HANDLE ALL NEW PRODUCTDEVELOPMENT EFFORTS FOR TANDY AND ANY OTHER CUSTOMERS IT CAN SNAG IN ADDITION THE UNIT WILL BRANCH OUT INTO SOME RETAILING AREAS THAT CONFLICT WITH TANDY'S CORE STOREFRONT BUSINESSES INCLUDING MAILORDER PC SALES A STRATEGY LONG RESISTED BY MR ROACH THOUGH ANALYSTS SAY MR ROACH IS TAKING A RISK BY SHUTTLING AWAY HIS TECHNOLOGY OPERATIONS THEY APPLAUD THE COMPANY'S RETURN TO ITS RETAILING ROOTS TANDY WAS LAUNCHED AS A LEATHERGOODS MERCHANT IN THE YEARS FOLLOWING WORLD WAR II IT'S BEEN HARD FOR THEM TO GET THE RIGHT FOLLOWING SAID BENNY LORENZO A TECHNOLOGY ANALYST AT DILLON READ IN NEW YORK THEY ARE FINALLY GOING TO BE TREATED AS A TRUE RETAILER THE QUESTION FOR MR LORENZO AND OTHERS THOUGH IS WHETHER THE LATEST MOVES MAKE TANDY A RETAILER THAT INVESTORS WILL WANT THE QUESTION IS WHETHER THEY HAVE DONE ENOUGH HE SAYS DIVISIONS RADIO SHACK COMPUTER CITY THE INCREDIBLE UNIVERSE TANDY NAME BRAND GROUP INCLUDES MCDUFF VIDEO CONCEPTS THE EDGE IN ELECTRONICS DIVISIONS GRID SYSTEMS CORP VICTOR TECHNOLOGIES TANDY ELECTRONICS MANUFACTURING COMPUTER SALES OPERATIONS DIVISIONS MAMTEK PRODUCTS O'SULLIVAN INDUSTRIES TANDY ELECTRONIC MANUFACTURING NONCOMPUTER SALES 9301130056 930113 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL CRIB NOTES WON'T HELP UNIVERSITIES PASS THE IRS'S NEW AUDITS A DECADE AGO ST JOHN'S UNIVERSITY IN QUEENS NY UNDERWENT A ONEMAN AUDIT FOR ABOUT TWO DAYS SAYS TREASURER JOHN CONNOLLY LAST JULY AN IRS TEAM BEGAN DIGGING INTO COMPUTER FILES IN A PROJECT THAT COULD TAKE MORE THAN A YEAR AN OFFICER OF THE UNIVERSITY OF NEBRASKA SAYS ITS AUDITORS MAY BE AROUND FOR TWO YEARS BOTH SCHOOLS ARE AMONG THE FIRST SUBJECTS OF AN AMBITIOUS PROGRAM LAST MONTH THE IRS PROPOSED AND SOUGHT COMMENT ON GUIDELINES FOR PROBING COLLEGES THE IRS IS EXAMINING AMONG OTHER THINGS THE BUSINESS ACTIVITIES OF HIGHER EDUCATION INSTITUTIONS THAT MAY BE TAXABLE THE GUIDELINES IF ADOPTED WILL INCREASE THE ADMINISTRATIVE BURDEN ON INSTITUTIONS SAYS BYRON A PARKER OF PEAT MARWICK CPAS IN DALLAS BUT THE GUIDELINES ARE A NOT NECESSARILY UNEXPECTED OR UNWARRANTED STEP TOWARD TREATING SCHOOLS LIKE BUSINESSES SAYS JEFF CARR A VICE CHANCELLOR AT VANDERBILT ALSO BEING PROBED THE IRS SEEMS TO BE FOCUSING ON ALUMNI DEVELOPMENT AND ATHLETICS ONE COLLEGE OFFICIAL SAYS S CORPORATIONS ACTIVE ABROAD DON'T NEED FOREIGN PARTNERS UNDER A NEW RULING AN S CONCERN OFFERS ITS OWNERS LIMITED LIABILITY AND THE TAX ADVANTAGES OF A PARTNERSHIP BUT IT HAS TO MEET CERTAIN CONDITIONS FOR ONE IT CAN'T OWN OVER 80 OF ANOTHER CORPORATION THOUGH IT CAN OF A PARTNERSHIP THAT'S AN IMPORTANT DISTINCTION FOR SCONCERN OWNERS WHO WANT TO OPERATE ABROAD THROUGH A LIMITEDLIABILITY UNIT SOME KINDS OF FOREIGN LIMITEDLIABILITY CONCERNS SUCH AS A GERMAN GMBH MAY BE TREATED BY THE US AS EITHER CORPORATIONS OR PARTNERSHIPS DEPENDING ON THE TERMS OF THEIR FORMATION IN 1977 IRS REVENUE RULING 77214 TREATED ONE GMBH AS A CORPORATION BECAUSE NO PARTY UNRELATED TO THE MAIN OWNER HELD AN INTEREST NOW REVENUE RULING 934 OVERTURNS THAT HOLDING AND SAYS A GMBH'S STATUS DOESN'T DEPEND ON WHETHER IT HAS UNRELATED OWNERS THAT'S A BOON FOR BUSINESSES THAT DON'T WANT TO ADD FOREIGN PARTNERS SAYS EDWIN REAVEY OF COOPERS & LYBRAND CPAS SHE WON DISABILITY PAY AND THEN THE TAX COMPLICATIONS BEGAN SHARON ANDREWS OF CHANDLER ARIZ BECAME ENTITLED TO DISABILITY PAY IN 1981 UNDER EMPLOYEE GROUP INSURANCE THE PAY HAD TO BE OFFSET BY ANY SOCIAL SECURITY DISABILITY PAY THE INSURER REQUIRED HER TO TAKE LEGAL ACTION TO PRESS HER SOCIAL SECURITY CLAIM ANDREWS WON HER CASE IN 1987 SOCIAL SECURITY AWARDED HER 19428 COVERING BACK PAY AND 6470 IN LEGAL FEES THAT IT PAID TO HER LAWYER THE INSURER WITHHELD ITS MONTHLY PAYMENTS UNTIL IT HAD RECOVERED 19428 THE IRS SOUGHT MORE TAX BECAUSE ANDREWS TREATED HER 198789 DISABILITY PAY AS EXEMPT AND IN 1987 DEDUCTED THE TOTAL LEGAL FEE PLUS 1765 FOR REPAYMENTS TO THE INSURER TAX COURT SPECIAL JUDGE GOLDBERG SYMPATHIZED WITH HER BUT HE SAID THE INSURER'S PAYMENTS WERE TAXABLE BECAUSE HER EMPLOYER NOT SHE PAID FOR THE INSURANCE THE JUDGE DENIED HER REPAYMENT DEDUCTIONS BECAUSE SHE MADE NO ACTUAL REPAYMENTS AND AS ONLY HALF THE SOCIAL SECURITY INCOME WAS TAXABLE HE HELD ONLY HALF THE FEE FOR GETTING IT WAS DEDUCTIBLE A NEW BROOM CHAIRMAN ROSTENKOWSKI D ILL WANTED TO SHRINK THE HOUSE WAYS AND MEANS COMMITTEE BUT IT GREW TO 38 SEATS FROM 36 OF 24 DEMOCRATS 10 ARE NEW TO THE PANEL KLECZKA WIS LEWIS GA PAYNE VA NEAL MASS HOAGLAND NEB MCNULTY NY KOPETSKI ORE JEFFERSON LA BREWSTER OKLA AND REYNOLDS ILL FIVE REPUBLICANS ARE NEW TO THEIR 14MEMBER SIDE AT WAYS AND MEANS HOUGHTON NY HERGER CALIF MCCRERY LA HANCOCK MO AND SANTORUM PA HERE'S HOW MAINE HANDLES ITS 6 SALES TAX ON OUTOFSTATE PURCHASES RESIDENTS MUST ENTER ANY TAX DUE ON THEIR STATE INCOMETAX RETURNS AND PAY IT OR DECLARE THEY OWE NOTHING IF THEY LEAVE THE LINE BLANK THE STATE ADDS ROUGHLY 004 OF ADJUSTED GROSS INCOME TO THEIR TAX BILLS MANY PARTNERSHIPS AND S CORPORATIONS CAN SHIFT 1993 INCOME BACK TO 1992 THE CATCH THEY MUST BE USING FISCAL YEARS NOW AND ACT BY MARCH 15 TO SHIFT TO THE CALENDAR YEAR END BUT THE MANEUVER IS POSSIBLE UNDER THE IRS'S REPLY TO A QUERY FROM DIANE HERNDON OF ERNST & YOUNG CPAS IT COVERS PERSONALSERVICE CORPORATIONS TOO THE QUERY AROSE FROM 1986 TAX LAW REQUIRING SUCH ENTITIES TO USE THE CALENDAR YEAR UNLESS THEY SHOW A BUSINESS PURPOSE FOR ANOTHER YEAR END IRS REVENUE PROCEDURE 8732 IN 1987 OFFERED A SIMPLE WAY TO CHANGE YEARS WITHOUT ADVANCE CONSENT FROM THE IRS SOME EXPERTS THOUGHT THAT METHOD MIGHT BE VALID ONLY DURING A TRANSITION PERIOD BUT NOW THE IRS SAYS IT IS STILL AVAILABLE SO FISCALYEAR ENTITIES DON'T NEED CONSENT TO USE THE CALENDAR YEAR AND MAY START WITH A SHORT YEAR ENDED LAST DEC 31 THEY JUST MUST FILE BY MARCH 15 A RETURN FOR THE SHORT YEAR HEADED FILED UNDER SECTION 806 OF THE TAX REFORM ACT OF 1986 THAT MOVES INTO 1992 SOME INCOME THAT OTHERWISE WOULD BE TAXED IN A 1993 FISCAL YEAR MANY TAXPAYERS EXPECTING HIGHER TAX RATES IN 1993 WILL WELCOME A CHANCE TO SHOVE INCOME BACK INTO 1992 BRIEFS CITIES BECOME MORE AGGRESSIVE USERS OF SALES TAXES VERTEX INC BERWYN PA SAYS IN 1992 150 CITIES INSTITUTED SALES TAXES 351 CHANGED EXISTING RATES IRS REVENUE RULING 92111 LISTS AREAS WHERE 1992 DISASTER LOSSES MAY QUALIFY FOR DEDUCTIONS FOR EITHER 1991 OR 1992 9301130054 930113 BUSINESS BRIEF FILENET CORP HOLDER BRINGS SUIT CHARGING FALSE FINANCIAL STATEMENTS FILENET CORP SAID IT WAS SUED BY A SHAREHOLDER WHO ALLEGES THAT THE COMPANY DISSEMINATED TO THE MARKET A SERIES OF FALSE FINANCIAL REPORTS IN ADDITION TO THE COMPANY THEODORE J SMITH PRESIDENT AND CHIEF EXECUTIVE OFFICER AND MARK S ST CLARE CHIEF FINANCIAL OFFICER ARE NAMED AS DEFENDANTS IN THE COMPLAINT FILED JAN 6 IN FEDERAL DISTRICT COURT IN SANTA ANA CALIF FILENET SAID THE SUIT WHICH SEEKS CLASSACTION STATUS IS WITHOUT MERIT AND THAT THE DEFENDANTS INTEND TO CONTEST IT THE COMPLAINT CHARGES THAT BETWEEN FEB 13 1992 AND JAN 4 THE COSTA MESA CALIF COMPUTER SOFTWARE CONCERN OR ITS OFFICERS AND DIRECTORS MADE POSITIVE STATEMENTS IN PRESS RELEASES AND OTHER DOCUMENTS INCLUDING REGULATORY FILINGS THAT WERE FALSE OR MISLEADING THIS MONTH FILENET SAID IT EXPECTED TO REPORT A FOURTHQUARTER LOSS OF 99 MILLION ON A 9 DROP IN REVENUE THE ANNOUNCEMENT MADE JAN 4 SENT THE COMPANY'S STOCK DOWN 34 OR 775 TO 15 YESTERDAY FILENET'S SHARES CLOSED AT 15 UP 625 CENTS IN OVERTHECOUNTER TRADING 9301130053 930113 ECONOMY BUSH ECONOMIC AIDES CALL FOR LIMITING GOVERNMENT'S ROLE IN THE MARKETPLACE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT BUSH'S COUNCIL OF ECONOMIC ADVISERS USED ITS FINAL ANNUAL REPORT TO WARN ABOUT THE DANGERS OF TOO MUCH GOVERNMENT INTERFERENCE IN THE MARKETPLACE IN WHAT AMOUNTS TO ADVICE FOR THE CLINTON ADMINISTRATION THE REPORT ASSERTED THERE IS NO REASON TO BELIEVE THAT BUREAUCRATS OR POLITICIANS ARE BETTER ABLE THAN PRIVATE INDIVIDUALS OR FIRMS TO ALLOCATE RESOURCES TO THEIR MOST PRODUCTIVE USES DURING A BRIEFING YESTERDAY COUNCIL CHAIRMAN MICHAEL BOSKIN CALLED FOR THE GOVERNMENT TO TAKE AN ACTIVISTLIMITED ROLE HE SAID MUCH OF PRESIDENTELECT CLINTON'S AGENDA AT LEAST AS OUTLINED DURING THE CAMPAIGN WAS NONSENSE THAT ATTEMPTED SOCIAL ENGINEERING AND REFLECTED A REGULATORY PROCLIVITY MR BUSH SOUNDED A SIMILAR THEME IN HIS INTRODUCTION TO THE 327PAGE REPORT THE FEDERAL STATE AND LOCAL GOVERNMENTS REGULATE TOO MUCH AND OFTEN IN INFLEXIBLE INEFFICIENT COSTLY AND UNNECESSARY WAYS THE PRESIDENT SAID WHILE SOME GOVERNMENT REGULATION IS NECESSARY IT SHOULD BE LIMITED TO ONLY THOSE AREAS WHERE SERIOUS MARKET FAILURES REQUIRE ATTENTION AND SHOULD PROVIDE MAXIMUM FLEXIBILITY FOR THE PRIVATE SECTOR TO COMPLY WITH THE REGULATIONS LAURA TYSON MR BOSKIN'S DESIGNATED SUCCESSOR HAS CALLED FOR THE GOVERNMENT TO TAKE A MORE ACTIVIST APPROACH ESPECIALLY WHEN IT COMES TO PROVIDING SPECIAL SUPPORT TO CERTAIN HIGHTECH INDUSTRIES SOME ECONOMISTS HAVE CRITICIZED THIS VIEW NOTING THAT THE COUNCIL TRADITIONALLY HAS BEEN THE MOST ARDENT VOICE IN THE WHITE HOUSE FOR FREE MARKETS AND FREE TRADE MR BOSKIN HOWEVER WAS CAREFUL NOT TO FIND FAULT WITH MS TYSON A UNIVERSITY OF CALIFORNIA AT BERKELEY ECONOMICS PROFESSOR WHOSE SENATE CONFIRMATION HEARING HAS BEEN SET FOR NEXT WEEK IT WOULD BE APPROPRIATE TO GIVE HER A CHANCE HE SAID THE CHAIRMAN ALSO POINTED OUT SOMEWHAT WISTFULLY THAT MR CLINTON APPEARS TO BE REEXAMINING MANY OF THE POSITIONS HE TOOK DURING THE PRESIDENTIAL RACE ALTHOUGH MR BOSKIN SAID THE COMMENTS IN THE REPORT WEREN'T DIRECTED SPECIFICALLY AT THE NEXT ADMINISTRATION HE DIDN'T HESITATE TO SAY THAT HE BELIEVES THEY'RE VERY APPLICABLE TO THOSE TAKING CONTROL ON JAN 20 IN ITS TYPICALLY WIDERANGING REPORT THE COUNCIL ATTACKED SEVERAL OF WHAT IT CONSIDERS FALLACIOUS VIEWS THAT PEOPLE HAVE ABOUT THE ECONOMY INCLUDING THE NOTION THAT THE US IS LAGGING BEHIND ITS COMPETITORS AND IS PERHAPS ON THE VERGE OF ECONOMIC COLLAPSE TO BE SURE THE AMERICAN ECONOMY DOES INDEED FACE SERIOUS CHALLENGES BUT IT DOES SO FROM A POSITION OF GREAT STRENGTH AND WITH THE TOOLS AND EXPERIENCE NEEDED TO OVERCOME THEM THE REPORT SAID THOSE WHO BELIEVE THE ECONOMY IS IN A STATE OF SUBSTANTIAL DECLINE THE REPORT SAID TEND TO WANT TO TRY TO RECTIFY THINGS WITH AN INDUSTRIAL POLICY THAT MANDATES VOLUMES OF NEW GOVERNMENT REGULATIONS GOVERNMENT SUBSIDIES TAX BREAKS AND NEW GOVERNMENT SPENDING ON PROJECTS THE PRIVATE SECTOR WOULD EVENTUALLY UNDERTAKE ITSELF IF FREE TO DO SO MR BOSKIN WHO PLANS TO BECOME A SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON BEFORE DECIDING WHAT TO DO IN THE LONGER TERM SPENT A GOOD PART OF THE BRIEFING LOOKING BACK AT THE BUSH ADMINISTRATION'S ATTEMPTS TO COPE WITH THE RECESSION AND A RECOVERY PERIOD THAT HAS BEEN PAINFULLY SLOW AS HE HAS DONE IN THE PAST HE TOOK HIS SHARE OF THE BLAME FOR THE ADMINISTRATION'S FAILURE TO COMMUNICATE HOW SEVERE THE ECONOMIC DOWNTURN WAS I THINK THAT COST THE PRESIDENT QUITE DEARLY MR BOSKIN SAID 9301130052 930113 INSIDE TRACK WASTE FIRM'S INSIDERS DUMPED STOCK IN MONTH BEFORE 82 FALL BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOUR TOP OFFICIALS OF HUNTER ENVIRONMENTAL SERVICES INC SOLD ABOUT 900000 OF STOCK IN THE MONTH BEFORE THE SHARE PRICE PLUMMETED 82 ON NEWS THAT HUNTER HAD BEEN DENIED A STATE PERMIT TO BUILD A HUGE UNDERGROUND HAZARDOUSWASTE DUMP HUNTER'S STOCK PLUNGED TO 1 A SHARE LAST THURSDAY FROM 5675 THE PREVIOUS DAY AFTER THE TEXAS WATER COMMISSION DENIED APPROVAL FOR HUNTER'S PLANS TO STORE SOLIDIFIED HAZARDOUS WASTE IN UNDERGROUND SALT CAVERNS 40 MILES NORTHWEST OF HOUSTON FOUR INSIDERS AT HUNTER ITS CHIEF OPERATING OFFICER CONTROLLER CHIEF FINANCIAL OFFICER AND THE PRESIDENT OF ITS HAZARDOUS WASTE DISPOSAL UNIT SOLD A TOTAL OF 273192 SHARES FROM DEC 7 THROUGH DEC 30 THEIR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THE SALES WERE THE FIRST BY THESE FOUR CORPORATE INSIDERS SINCE THE HAZARDOUSWASTE DISPOSAL FIRM WENT PUBLIC IN 1986 THEY WERE MADE AS HUNTER'S STOCK PRICE WAS CLIMBING ON EXPECTATIONS OF STATE APPROVAL FOR THE TEXAS PROJECT MOST OF THE SALES BY THE FOUR OFFICIALS OCCURRED IMMEDIATELY AFTER THEY EXERCISED OPTIONS TO BUY THE STOCK AT 2 A SHARE THE SHARES WERE RESOLD AT PRICES RANGING FROM 275 TO 5375 A SHARE SEC FILINGS SHOW HUNTER IS BASED IN SOUTHPORT CONN SPEAKING FOR HUNTER DENNIS OISTACHER ITS CHIEF OPERATING OFFICER SAID HE AND THE THREE OTHER EXECUTIVES SOLD SHARES WITHOUT HAVING ANY INSIDER INFORMATION THAT WASN'T AVAILABLE TO THE PUBLIC WE FELT VERY POSITIVE ABOUT OUR PROSPECTS WE KNEW THERE WERE NO GUARANTEES AFTER THE SALES EACH OF THE FOUR INSIDERS WAS LEFT WITH RELATIVELY MODEST STOCKHOLDINGS OF 12020 OR FEWER HUNTER SHARES SEC FILINGS SHOW ALTHOUGH EACH RETAINS SUBSTANTIAL OPTIONS POSITIONS MR OISTACHER SAID THAT MOST OF THE FIRM'S LARGEST STOCKHOLDERS WHO ARE DIRECTORS DIDN'T SELL SHARES HOWEVER HUNTER'S CHAIRMAN OLIVER KIMBERLY JR FILED HIS INTENTIONS WITH THE SEC DEC 21 TO TRIM BY 157456 SHARES THE STAKE IN HUNTER HELD BY KIMBERLY COX & HARNISH INC SEC FILINGS SHOW MR KIMBERLY IS PRESIDENT OF AND A 40 SHAREHOLDER IN KIMBERLY COX HUNTER'S STOCK WAS EXCEPTIONALLY VOLATILE IN THE FALL OF 1992 RISING AND FALLING IN LINE WITH THE PROGRESS OF THE COMPANY'S PLANS TO DRILL 10 HUGE CAVERNS EACH THE HEIGHT OF NEW YORK CITY'S EMPIRE STATE BUILDING IN SALT DOMES IN TEXAS IN WHICH TO STORE SOLIDIFIED HAZARDOUS WASTE ALTHOUGH SUCH DOMES ARE USED TO STORE NATURAL GAS AND PETROLEUM PRODUCTS IN THE US AND IN EUROPE THIS WOULD HAVE BEEN THE FIRST APPLICATION OF THE TECHNOLOGY TO HAZARDOUSWASTE DISPOSAL IN OCTOBER THE EXECUTIVE DIRECTOR OF THE TEXAS WATER COMMISSION AND HIS TECHNICAL STAFF ISSUED A REPORT RECOMMENDING THAT HUNTER BE DENIED THE PERMITS ON DEC 2 HOWEVER THE COMMISSION ISSUED A FINDING THAT REGULATIONS WERE IN PLACE TO ALLOW THE PROJECTS TO PROCEED IF THEY WERE APPROVED THE FINDING WHILE PRELIMINARY PROMPTED HUNTER STOCK TO ALMOST DOUBLE TO 3175 DURING THE FOLLOWING TWO DAYS THE SHARES RECEIVED ANOTHER BOOST ON DEC 10 WHEN THE TWO TEXAS HEARING EXAMINERS AFTER 66 DAYS OF HEARINGS RECOMMENDED APPROVAL OF SIX OF THE 10 PROPOSED HAZARDOUSWASTE DISPOSAL SITES HUNTER PUT OUT A NEWS RELEASE THAT DIDN'T SPECIFICALLY STATE THAT THE WATER COMMISSION'S EXECUTIVE DIRECTOR AND ITS TECHNICAL STAFF OPPOSED THE PROJECT AND THAT NOTED THAT THE COMMISSIONERS CAN ONLY REJECT THE EXAMINERS' RECOMMENDATIONS UNDER CERTAIN VERY NARROW CIRCUMSTANCES SOME BROKERS AND ANALYSTS PREDICTED THAT APPROVAL OF THE PROJECT WOULD IMMEDIATELY BOOST THE STOCK TO ABOUT 650 TO 8 A SHARE THE FOUR HUNTER OFFICIALS SOLD SHARES FROM DEC 7 THROUGH DEC 30 LATE ON JAN 6 THE TEXAS WATER COMMISSION RELEASED A UNANIMOUS DECISION TO VETO THE PROJECT PROMPTING A BIG SELLOFF IN THE STOCK THE NEXT DAY THE COMMISSION WAS CRITICAL OF THE FIRM'S ABILITY TO RAISE FINANCING QUESTIONED WHETHER THE PROJECT WAS IN THE PUBLIC INTEREST AND RAISED QUESTIONS ABOUT ITS EFFECTS ON PUBLIC HEALTH AND SAFETY ACCORDING TO KENNETH RAMIREZ DEPUTY EXECUTIVE DIRECTOR OF THE COMMISSION MR RAMIREZ DECLINED TO COMMENT ON THE INSIDER SALES HOWEVER GLENN LEWIS A COMMISSION SPOKESMAN SAID THAT HUNTER OFFICIALS WERE AWARE OF VERY STRONG OPPOSITION TO THE PROJECT THE CITY OF HOUSTON WAS WORRIED ABOUT ANY POTENTIAL THREAT TO THE DRINKING WATER SOURCE THAT THE PROJECTS MIGHT CONTAMINATE LAKE HOUSTON MOREOVER THE COMPANY HAD A PERFECT KNOWLEDGE THAT THERE WAS A DIFFERENCE OF OPINION WITHIN THE COMMISSION ABOUT APPROVING THE HUNTER PROJECT MR LEWIS SAID MR RAMIREZ SAID IT IS HISTORICALLY VERY RARE FOR THE EXECUTIVE DIRECTOR TO RECOMMEND AGAINST APPROVAL AND BECAUSE THE STAFF OF THE EXECUTIVE DIRECTOR HAD WRITTEN THE RULES ON SALT DOME HAZARDOUSWASTE DISPOSAL THE STAFF'S OPPOSITION WOULD BE A SERIOUS COUNTERBALANCE TO THE HEARING EXAMINER'S REPORT HUNTER'S MR OISTACHER SAID THAT IN 1990 HUNTER DIVESTED ITSELF OF ALL OTHER OPERATING UNITS TO FOCUS ON DEVELOPMENT OF THE TEXAS SALTDOME PROJECT HE SAID THAT HUNTER WILL VOCIFEROUSLY CONTEST THE COMMISSION'S DECISION WHICH HE ASSERTED WAS BASED ON CONCERNS OTHER THAN THE FACTS OF THE CASE HE SAID THAT HUNTER PLANS TO FILE AN APPEAL IN TEXAS STATE DISTRICT COURT AND TO FILE A MOTION FOR A REHEARING BY THE COMMISSION SOON HOWEVER IT WILL BE AN UPHILL BATTLE MR OISTACHER SAID YESTERDAY HUNTER'S STOCK CLOSED AT 103125 A SHARE IN NATIONAL OVERTHECOUNTER TRADING 9301130051 930113 BUSINESS BRIEF APPLIED IMMUNE SCIENCES INC PATENT AWARDED TO COMPANY FOR WAY TO REPRODUCE VIRUS APPLIED IMMUNE SCIENCES INC SANTA CLARA CALIF SAID IT RECEIVED A PATENT FOR A PROCESS FOR LARGESCALE REPRODUCTION OF A CERTAIN VIRUS USED IN GENE THERAPY THE COMPANY SAID THE THE ADENOASSOCIATED VIRUS HAS MUCH POTENTIAL FOR USE IN GENE THERAPY BUT TRADITIONALLY HAS BEEN HARD TO WORK WITH BECAUSE IT WAS SLOW TO PRODUCE IT SAID THE NEW PROCESS ALLOWS FOR FAIRLY QUICK PRODUCTION OF LARGE QUANTITIES OF THE VIRUS IN GENE THERAPY CERTAIN GENES WHOSE ABSENCE MAY CAUSE ILLNESSES ARE REINTRODUCED INTO A PATIENT THROUGH THE USE OF MODIFIED VIRUSES IN OVERTHECOUNTER TRADING YESTERDAY APPLIED IMMUNE CLOSED AT 1575 DOWN 75 CENTS 9301130050 930113 LEISURE & ARTS ON DISC BAEZ IS BACK BY NAT HENTOFF THE SLENDER LONGHAIRED FIERCELY SHY SINGER WAS UNKNOWN WHEN SHE TOOK THE STAGE AT THE 1959 NEWPORT FOLK FESTIVAL BUT THE PENETRATING FORCE OF HER ACHINGLY PURE SOPRANO AS ONE CRITIC PUT IT MADE HER AN OVERNIGHT STAR WHO WAS SOON TO BECOME A LEGEND A YEAR LATER I BROUGHT JOAN BAEZ TO ROBERT HERRIDGE THE MOST ORIGINAL AND LITERATE TELEVISION PRODUCER THEN OR SINCE WE HAD WORKED TOGETHER ON THE SOUND OF JAZZ WITH BILLIE HOLIDAY COUNT BASIE THELONIOUS MONK AND OTHER NONPAREILS HE WANTED TO DO A SIMILARLY UNCOMPROMISING FOLKMUSIC PROGRAM I HAD ALREADY RECOMMENDED LIGHTNING HOPKINS AND CISCO HOUSTON HERRIDGE WAS MESMERIZED BY BAEZ'S VOICE BUT NOT BY BAEZ SHE'S 19 YEARS OLD HERRIDGE COMPLAINED TO ME AND SHE THINKS SHE'S THOMAS MANN BAEZ WOULD NOT DO THE SHOW UNLESS SHE WAS IN COMPLETE CONTROL OF WHAT SHE WOULD SING THE SET BEHIND HER OR RATHER THERE SHOULD BE NO SET AT ALL AND A FEW OTHER THINGS THE SHYNESS HAD GONE BUT THE INTEGRITY BECAME STRONGER AND STRONGER IN 1963 WHEN MANY FOLK SINGERS WERE PLOTTING HOW TO GET ON ABCTV'S POPULAR HOOTENANNY BAEZ TURNED DOWN AN INVITATION BECAUSE THE SHOW HAD BLACKLISTED PETE SEEGER MEANWHILE SHE SOLD MORE ALBUMS THAN ANY FOLK SINGER EVER HAD AT FIRST HER REPERTORY CONSISTED MAINLY OF CENTURIESOLD ENGLISH BALLADS WHICH SHE SANG SO CONVINCINGLY THAT ONSTAGE SHE SEEMED TO BE OF THAT TIME THEN THERE WERE OCCASIONAL ACUTELY CONTEMPORARY SONGS OF PROTEST AGAINST THE WAR AGAINST BIGOTRY AGAINST COMPLACENCY SOME WERE WRITTEN BY THE BARELY KNOWN BOB DYLAN WHOM SHE INTRODUCED TO LARGER AUDIENCES BY BRINGING HIM ALONG ON HER CONCERT TOURS THE WILD JEWISH BOY AND THE MADONNA ON THE HALFSHELL AS BAEZ REFERRED TO HERSELF BECAME LOVERS FOR A WHILE AN EVENT THAT GRATIFIED THE FANTASIES OF MANY OF THEIR FANS FOR BAEZ AND DYLAN WERE THE ONLY ROYALTY THESE AMERICAN ROMANTICS RECOGNIZED DURING THE '60S AND AFTER BAEZ FAR MORE THAN ANY OTHER PERFORMER IN ANY MEDIUM BECAME PART OF WHAT SHE SANG ABOUT SHE MARCHED WITH MARTIN LUTHER KING JR IN GRENADA MISS RAISED MONEY FOR AND GAVE TIME TO CESAR CHAVEZ'S STRIKING FARM WORKERS AND AMNESTY INTERNATIONAL WAS TWICE ARRESTED AND IMPRISONED FOR HELPING TO BLOCK AN ARMED FORCES INDUCTION CENTER IN OAKLAND CALIF AND BECAME A THOROUGHLY KNOWLEDGEABLE PROSELYTIZER FOR NONVIOLENCE SHE HAD ABSORBED THE WORKS OF GANDHI AND BEING BAEZ DISPUTED HIM ON A NUMBER OF POINTS BAEZ WENT ON TO FOUND THE HUMANITAS INTERNATIONAL HUMAN RIGHTS COMMITTEE AND TRAVELED THROUGH MUCH OF THE WORLD TO DEFY NONVIOLENTLY VARIOUS REPRESSIVE AGENTS OF AUTHORITARIAN REGIMES SHE COULD ALSO MAKE UNEXPECTED SCARLET PIMPERNEL VISITS AT HOME SOME YEARS AGO I WAS REPORTING ON THE VICIOUS HOSTILITIES BEING DIRECTED AT SUSAN SHAPIRO A HIGH SCHOOL SENIOR IN RANDOLPH MASS SHAPIRO WAS A REAGAN REPUBLICAN BUT OBJECTED TO SALUTING A PIECE OF CLOTH THE AMERICAN FLAG DURING MANDATORY MORNING DEVOTIONS IN SCHOOL SHAPIRO BECAME A PARIAH AT THE HIGH SCHOOL AND THREATS OF VIOLENCE WERE DELIVERED TO HER HOME USUALLY WITH SUCH HIGHMINDED COMMENTS AS HITLER SHOULD HAVE FINISHED THE JOB I CALLED THE YOUNG WOMAN IN THAT SMALL TOWN ONE DAY AND SHE SAID HOLD ON THERE'S SOMEONE HERE WHO WANTS TO TALK TO YOU IT WAS THE SCARLET PIMPERNEL BAEZ HAD COME TO GIVE SUSAN SUPPORT A SONG WOULDN'T DO SHE HAD TO BE THERE ONCE IN A WHILE AS THE YEARS PASSED BAEZ WOULD BROOD ABOUT HER DIMINISHING PROSPECTS AS A SINGER ROCK HAD CAPTURED THE VAST MAJORITY OF THE YOUNG PEOPLE OF HER AGE AND OLDER STILL CAME TO HER CONCERTS BUT AS SHE RECENTLY TOLD THE NEW YORK TIMES THEY WERE BRINGING THEIR MISERABLE CHILDREN WHO DIDN'T WANT TO BE THERE I FELT LIKE RESCUING THEM IN BETWEEN HER SOMETIMES PERILOUS JOURNEYS ON BEHALF OF HUMAN RIGHTS BAEZ TRIED VARIOUS APPROACHES TO AGAIN MAKING ALBUMS THAT MIGHT ACTUALLY HAVE RESPECTABLE SALES FURTHERMORE HER VOICE HAD DEEPENED AND WAS NO LONGER ACHINGLY PURE I HEARD ONE OF HER RECORDED ATTEMPTS AT BEING WITH IT AND I TOLD HER I HOPED SHE WOULD NOT LET IT BE RELEASED BUT SHE DID IT WAS AN ALLTOOEARNEST ATTEMPT TO REACH THE YOUNG AND HAD LITTLE OF BAEZ'S CHARACTER IN IT AND NONE OF THE SWIFT SELFDEPRECATORY WIT OF HER MATURING YEARS THE RECORDING WENT NOWHERE FINALLY BAEZ BY BEING BAEZ HAS COME UP WITH THE RIGHT COMBINATION IN THE CD PLAY ME BACKWARDS VIRGIN FIRST OF ALL IT WAS RECORDED IN NASHVILLE TENN WHERE THE STUDIO PLAYERS GIVEN HALF A CHANCE TO BREATHE ON THEIR OWN ARE LOOSER AND THEREFORE MORE ENLIVENING THAN THEIR COUNTERPARTS ANYWHERE ELSE FURTHERMORE THE SMALL BACKUP BAND PRIMARILY A RHYTHM SECTION WITH AFRICAN AND LATIN TINGES AMONG THEM THE DOBRO AND OTHER GUITARS CRISPLY ENERGIZES BAEZ WITHOUT TRIPPING HER THE SONGS SOME BY BAEZ AND OTHERS BY JANIS IAN MARYCHAPIN CARPENTER JOHN HIATT AND RON DAVIES HAVE INTELLIGENT LYRICS THAT MAY CONNECT WITH THE LIVES OF SOME OF THE LISTENERS THERE IS A GRACEFUL MORDANT LOVE SONG AMSTERDAM BAEZ'S EMANCIPATION OF HER 22YEAROLD SON GABRIEL I'M WITH YOU SO IT'S TIME TO SET YOU FREE A NIGHTMARISH THE DREAM SONG BY BAEZ AND CARPENTER'S STONE IN THE ROAD A HIGHLY DISTILLED ACCOUNT OF THE JOURNEY FROM CHILDHOOD INNOCENCE TO ADULT COMPROMISE WHAT MAKES IT ALL COME TOGETHER OF COURSE IS A BAEZ WHO HAS REGAINED MUSICAL CONFIDENCE IN BEING BAEZ THE VOICE IS STRONG AND HAS MORE WARMTH THAN BEFORE HER SENSE OF DYNAMICS ALWAYS ASTUTE HAS NOT LEFT HER BUT WHILE SHE DIDN'T USED TO BE ALL THAT SECURE WITH TIME WITH LETTING THE BEAT FLOW SHE IS NOW BAEZ HAS NOT ABANDONED HER OTHER VOCATION AS THE SCARLET PIMPERNEL BUT NOW SHE CAN DO THOSE NECESSARY WORKS WITHOUT HAVING TO WORRY IF THERE IS STILL A PLACE FOR HER AS A PURE SONGSTER AND I HAVE NO DOUBT SHE'LL CONTINUE TO DO THE UNEXPECTED IN EITHER FIELD IT WAS BAEZ AFTER ALL WHO ONCE TOLD HER LIBERAL ADMIRERS THAT IF THEY WERE TRULY CONCERNED ABOUT OPPRESSED PEOPLE THEY SHOULD FEEL SYMPATHY FOR POLICEMEN WHO MUST BE SOME OF THE MOST OPPRESSED PEOPLE IN THIS SOCIETY MR HENTOFF IS A WRITER AND JAZZ CRITIC IN NEW YORK 9301130049 930113 BUSINESS BRIEF KERRMCGEE CORP RESULTS FOR 1992 TO REFLECT ABOUT 195 MILLION CHARGES KERRMCGEE CORP SAID RESULTS FOR 1992 WILL INCLUDE TWO NONCASH ACCOUNTING CHANGES AND A NONCASH RESERVE FOR ENVIRONMENTAL EXPENDITURES THAT WILL TOTAL ABOUT 195 MILLION OR 347 A SHARE FOR ALL OF 1991 THE COMPANY HAD NET INCOME OF 1016 MILLION OR 210 A SHARE ON SALES OF 327 BILLION THE OKLAHOMA CITY COMPANY'S 1992 RESULTS ARE TO BE ANNOUNCED LATER THIS MONTH THE FIRST CHARGE WILL INVOLVE AN AFTERTAX ENVIRONMENTAL RESERVE OF 130 MILLION OR 270 A SHARE THIS RESERVE WILL USED BE TO DECOMMISSION A WEST CHICAGO ILL FACILITY THAT USED THORIUM A LOWLEVEL RADIOACTIVE SUBSTANCE IN ITS MANUFACTURING PROCESS AS WELL AS FOR OTHER ABANDONED CHEMICAL AND REFINING PLANT SITES ALTHOUGH THE ADDITION TO THE RESERVE WILL BE RECOGNIZED IN 1992'S FINANCIAL RESULTS THE CASH EXPENDITURES WILL BE INCURRED IN FUTURE YEARS THE COMPANY SAID SEPARATELY AN ACCOUNTING CHANGE COVERING THE PROJECTED COST OF RETIREE MEDICAL AND LIFE INSURANCE BENEFITS ALSO WILL RESULT IN A NONCASH AFTERTAX CHARGE OF APPROXIMATELY 66 MILLION OR 137 A SHARE ALSO ADOPTION OF A DEFERRED TAX LIABILITY CHANGE WILL BENEFIT 1992 RESULTS BY ABOUT 1 MILLION OR TWO CENTS A SHARE 9301130048 930113 ARABIAN BACKLASH TWO YEARS AFTER WAR MANY SAUDIS BEHAVE AS IF IT NEVER OCCURRED RESENTMENT OF WEST RETURNS AND ISLAMIC HARDLINERS CHALLENGE THE MONARCHY KINGDOM'S HIDDEN POVERTY BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL JIDDA SAUDI ARABIA WHEN THE PATRIOT RESTAURANT OPENED AT THE END OF THE PERSIAN GULF WAR THE NEON MISSILE BLINKING ON ITS FACADE DREW CROWDS OF DINERS AND THE ATTENTION OF THE LOCAL PRESS THESE DAYS THE MOOD HAS CHANGED IT SHOULD HAVE AN ARAB NAME SAYS OSAMA ALIBRAHIM A MEDICAL STUDENT WAITING FOR HIS TAKEOUT SHISH KEBAB AMERICA FOUGHT FOR ITS BENEFIT NOT FOR OURS IF WE HAD A REAL ARMY A FELLOW STUDENT SAYS WE WOULDN'T NEED THE WEST TO DEFEND US ANOTHER DINER MOHAMED LOQMAN LISTENS UNCOMFORTABLY LIKE MOST SAUDIS HE ISN'T KEEN TO DWELL ON WHAT HE DELICATELY CALLS ALAZ'MA ARABIC FOR THE CRISIS IT MAKES ME FEEL MORE SHAME THAN PRIDE THE TELEPHONE TECHNICIAN SAYS MAYBE IT IS BEST TO FORGET ABOUT THAT TIME AND JUST LIVE AS WE DID BEFORE IN WHAT APPEARS TO BE AN ACT OF WILLFUL AMNESIA SAUDI ARABIA HAS TRIED TO ERASE ALL TRACES OF THE WAR THAT WAS LAUNCHED FROM ITS DESERT TWO YEARS AGO THERE HAVE BEEN NO ANNIVERSARY MARCHES NO PLAQUES NO DOCUMENTARIES NO SEMINARS INDEED NO PUBLIC TALK OF THE WAR AT ALL BUT FOR MANY SAUDIS LIKE THOSE AT THE PATRIOT THE WAR AGAINST IRAQ STILL RAISES TROUBLING QUESTIONS THE SEARCH FOR ANSWERS IN MOSQUES ON CASSETTE TAPES IN WILD CONSPIRACY THEORIES SUGGESTS THAT SAUDI ARABIA ISN'T THE SECURE AND INFINITELY RICH ALLY UPON WHICH THE US NOW BASES SO MUCH OF ITS ENERGY AND MIDEAST POLICY THE INFLUENCE OF ISLAMIC FUNDAMENTALISTS IS INCREASING AS IS THE NATION'S DISENCHANTMENT WITH THE GOVERNMENT IN RIYADH AND SO IS THE POPULAR DISTRUST OF THE WEST SPECIFICALLY THE US LAST MONTH ON THE DAY US MARINES LANDED IN SOMALIA FARID GHORASHI SAT IN HIS OFFICE STUDYING A MAP THAT HAS SARAJEVO UNDERLINED AND ISRAEL WHITED OUT EDUCATED FOR NINE YEARS IN THE US HE NOW HEADS THE LARGEST CHARITY IN THE ARAB WORLD OF THE USLED RELIEF EFFORT HE SAYS SOME PEOPLE THINK THE WHOLE IDEA IS TO WEAKEN THE MUSLIM COUNTRIES AROUND ISRAEL BEGINNING WITH SOMALIA THEN COMES SUDAN THEN EGYPT SOMALIA COUPLED WITH US INACTION IN BOSNIA WHERE MUSLIMS ARE BEING KILLED BY SERBS HAS CHANGED SAUDI VIEWS OF THE GULF WAR DO AMERICAN WEAPONS ONLY FIND IT EASY TO SHOOT AT MUSLIMS HE ASKS THAT IS WHAT SOME PEOPLE WONDER BY SOME PEOPLE DR GHORASHI MEANS MUSLIM FUNDAMENTALISTS WHO HAVE GROWN POTENT SINCE THE GULF WAR IN CONTRAST TO EGYPT AND ALGERIA WHERE FAILED ECONOMIES HAVE LONG FUELED POPULAR DISSENT SAUDI ARABIA'S CITIZENS HAVE FOR YEARS BEEN SEDATED WITH SOFT LOANS SOFT JOBS AND A SURFEIT OF CONSUMER GOODS FRINGE SHEIKS TENDED TO SPEAK TO A LIMITED AUDIENCE THERE ARE SIGNS THAT IS CHANGING YEARS OF MISMANAGEMENT CORRUPTION AND BUDGET DEFICITS HAVE LEFT SCHOOLS OVERCROWDED AND MANY YOUNG SAUDIS UNEMPLOYED ADDED TO THIS IS THE UNSETTLED POSTWAR MOOD WITH PRESS AND POLITICAL FREEDOMS NONEXISTENT THE ONLY PUBLIC FORUM IS THE MOSQUE AND SAUDIS WHO TURN THERE FOR GUIDANCE NOW FIND A MOVEMENT THAT IS FAR MORE SOPHISTICATED BRAZEN AND POLITICAL THAN A FEW YEARS AGO THE MINDSET IS STILL SEVENTH CENTURY BUT THE SKILLS ARE ENTERING THE 20TH SAYS A JIDDA BUSINESSMAN WHOSE OFFICE FAX MACHINE OFTEN IS CLOGGED WITH UNSOLICITED NOTICES FROM FUNDAMENTALISTS OTHER SAUDIS FIND MAILBOXES STUFFED WITH TAPES OF ANTIWESTERN SERMONS THERE ALSO ARE COMPUTER BULLETIN BOARDS SO THE DEVOUT CAN SCAN MESSAGES FROM LEADING SHEIKS LAST SUMMER 107 SAUDIS PETITIONED KING FAHD DEMANDING COMPLETE ADHERENCE TO ISLAMIC LAW WHAT STRUCK MANY SAUDIS WAS THE MANIFESTO'S APPEAL BEYOND THE RELIGIOUS FRINGE IT CONDEMNED SAUDI ARABIA'S RAMPANT CORRUPTION ITS TINY ARMY NO LARGER NOW THAN BEFORE THE GULF WAR AND ITS DESPISED LEGAL SYSTEM WHICH BARS DEFENSE LAWYERS FROM COURTROOMS EVERY SAUDI COULD FIND THINGS IN THERE THEY AGREE WITH SAYS THE BUSINESSMAN WHO SEES SHADES OF ROSS PEROTSTYLE POPULISM IN THE FUNDAMENTALIST PLATFORM SUCH POPULISM HAS STRONG APPEAL AT A TIME WHEN MANY SAUDIS ARE STRUGGLING WHILE THIS IS CERTAINLY NO SOMALIA IT ALSO ISN'T THE UNIFORMLY RICH AND PAMPERED LAND MANY WESTERNERS IMAGINE BEHIND THE STEEL AND GLASS TOWERS OF DOWNTOWN JIDDA SPRAWL UNPAVED FLYINFESTED STREETS LITTERED WITH STALE BREAD LEFT FOR AFRICAN BEGGARS TO GRIND INTO ANIMAL FEED WITH WAGES ROUGHLY THE SAME AS A DECADE AGO MANY CAN AFFORD LITTLE BEYOND BASICS MANY ALSO CAN'T FIND JOBS THE BLOATED PUBLIC SECTOR CAN NO LONGER ABSORB EVERY YOUNG SAUDI AND THE PRIVATE SECTOR PREFERS CHEAP WELLTRAINED FOREIGNERS TO SAUDI GRADUATES WHOSE EDUCATION STILL RELIES HEAVILY ON ROTE AND ON ISLAM DESPITE YEARS OF STATE PRODDING PRIVATE SECTOR EMPLOYMENT REMAINS ONLY 10 SAUDI THE INFRASTRUCTURE AND WELFARE STATE BUILT IN THE BOOM YEARS OF THE LATE 1970S AND EARLY 1980S ALSO ARE STARTING TO CREAK SOME JIDDA STREETS GET WATER ONLY TWO DAYS A WEEK DOCTORS OFTEN DELIVER BABIES IN THE EMERGENCY ROOM BECAUSE HOSPITAL BEDS ARE SCARCE AND HANDOUTS SUCH AS NOINTEREST HOUSING LOANS NOW REQUIRE A WAIT OF FIVE YEARS OR MORE THE GOVERNMENT DOES NOTHING FOR US ANYMORE SAYS A 23YEAROLD BANK CLERK WAITING IN A JIDDA CHARITY'S LOBBY THEY DON'T EVEN KNOW ABOUT OUR PROBLEMS THE CLERK'S PROBLEM IS THAT HE IS ENGAGED TO MARRY YET HIS 900AMONTH SALARY AVERAGE FOR LOWSKILLED SAUDIS WON'T COVER THE COST OF THE WEDDING PARTY DOWRY AND FURNITURE THAT ARE PART OF SAUDI MARRIAGE CUSTOM WHEN HIS BANK REFUSED HIM A LOAN HE SOUGHT HELP FROM A FUNDAMENTALIST GROUP CALLED THE CHARITABLE FUND FOR ASSISTING YOUTHS' MARRIAGES THE CHARITY ARRANGES DISCOUNTED WEDDINGS AND OFFERS LOANS USED FURNITURE EVEN WEDDING DRESSES SEQUINS GOLD BRAID WHATEVER THE BRIDE LIKES SAYS THE GROUP'S MANAGER MAHMOUD WALI DISPLAYING FLUFFY WHITE GOWNS THAT CAN BE BORROWED BEARDED MEN IN SHORT ROBES AND UNTIED HEADSCARVES EMBLEMS OF SAUDI FUNDAMENTALISM USE COMPUTERS TO TRACK THOSE THE GROUP HAS HELPED COUPLES ARE ELIGIBLE FOR 350 UPON THE BIRTH OF THEIR FIRST CHILD THE CHARITY HAS AIDED 1750 COUPLES SINCE 1987 AND SAYS THE NUMBERS SEEKING AID ARE DOUBLING EACH YEAR SUCH GROUPS SERVE ANOTHER FUNCTION BY FILLING A VACUUM LEFT BY THE STATE THEY QUIETLY BROADEN SUPPORT FOR FUNDAMENTALISTS AND OBLIQUELY DISCREDIT THE GOVERNMENT THE MARRIAGE GROUP IS LED BY A SHEIK OFTEN CRITICAL OF THE STATE ACROSS SAUDI ARABIA FUNDAMENTALISM IS PARTICULARLY STRONG AMONG THE YOUNG IN A COUNTRY WHERE HALF THE POPULATION IS UNDER AGE 18 ECONOMICS IS ONE REASON AS IS THE GROWING PIETY EVIDENT ACROSS THE MIDEAST BUT THE WAR HAS HASTENED THE PROCESS THE CRISIS WAS CONFUSING FOR MANY OF US SAYS WALID ALBAGHDADI A STUDENT THAT IS WHY SO MANY FIND ISLAM AGAIN BECAUSE IT MAKES EVERYTHING CLEAR LIKE COLLEGE FRESHMEN THE WORLD OVER MR BAGHDADI IS HANGING OUT AFTER CLASS AT A CASSETTETAPE SHOP JUST OFF CAMPUS HE FLIPS THROUGH HUGE LOOSELEAF NOTEBOOKS LISTING THE LATEST RELEASES PLAYING ON A BOOMBOX IS ISLAM VS CHRISTIANITY ONE OF THIS WEEK'S HOTTEST RECORDINGS IN THE WESTERN COMPOUNDS IN JIDDA A SHEIK INTONES MUSLIMS ARE PLIED WITH DRUGS AND ALCOHOL SO THEY WILL ACCEPT CHRISTIANITY THE SHEIK WHOSE VOICE IS TAPED WITH AN ECHO FOR ADDED EFFECT ALSO CONDEMNS THE EMPLOYMENT OF NONMUSLIMS IN SAUDI ARABIA AND THE USE OF ENGLISH IN ITS SCHOOLS MR BAGHDADI SAYS THE MESSAGE IS THAT ISLAM IS STRONG BUT THE PEOPLE ARE NOT NOT YET THAT IS WHY THE WEST CAN ALWAYS DO WHAT IT WANTS THE POPULARITY OF SUCH SHOPS HAS SURGED SINCE THE GULF CRISIS AND THE TAPES HAVE BECOME BRAZENLY ANTIROYAL THIS NEW TONE ALSO IS EVIDENT IN GRAFFITI USING KORANIC VERSES SUCH AS KINGS WHEN THEY ENTER A COUNTRY DESPOIL IT AND MAKE THE NOBLEST OF ITS PEOPLE THE LOWEST MOST SAUDIS AND FOREIGN ANALYSTS SAY ONLY 20 OR SO OF THE PUBLIC BACKS THE FULL FUNDAMENTALIST AGENDA WHICH CALLS FOR THE CLOSING OF BANKS AND A HOLY WAR AGAINST ISRAEL BUT IF EXTREMISTS KEEP MONOPOLIZING THE POLITICAL DEBATE AND THE STATE DOESN'T CHANGE ITS WAYS THEY WARN THAT THE COUNTRY'S BEWILDERED MAINSTREAM MAY DRIFT TOWARD THE HARDLINE CAMP IN SOME AREAS CHANGE IS ALREADY EVIDENT AT HORIZON ADVERTISING AGENCY IN JIDDA EMILE CHARBINE SCANS TV COMMERCIALS FROM THE PAST TWO YEARS IN ONE A GENIE IN A SPACESUIT DELIVERS COOKING OIL TO A FRANTIC HOUSEWIFE WHEN MR CHARBINE READIED THE AD FOR BROADCAST JUST AFTER THE GULF WAR SAUDI CENSORS BARRED IT THE RULES CHANGED HE EXPLAINS WE COULDN'T SHOW WOMEN'S HAIR ANYMORE ALSO THE GENIE'S SPACESUIT WAS JUDGED TOO TIGHT THE AD WAS RESHOT AT A COST OF 80000 THE NEXT COMMERCIAL FOR COLGATE TOOTHPASTE SHOWS A SCARFCLAD WOMAN IN A LONG DRESS SMILING BRIGHTLY CENSORS OBJECTED TO HER LIPSTICK HORIZON USED COMPUTER GRAPHICS TO ERASE THE COLOR FROM HER LIPS ONE FRAME AT A TIME WOMEN CAN'T SING IN ADS NOR CAN THEIR VOICE BE TOO SEXY MR CHARBINE SAYS IN A MOTOR OIL AD A MAN'S VOICE WAS DUBBED BECAUSE THE CENSORS JUDGED IT EFFEMINATE SINCE THE WAR SAUDI ARABIA'S RELIGIOUS POLICE CALLED MUTAWWA'INN ALSO HAVE BEEN ON THE MARCH HURLING STONES AND EVEN SHOOTING AT SATELLITE DISHES WHICH THEY REGARD AS CONDUITS OF WESTERN CORRUPTION THEY SOMETIMES BURST INTO HOMES TO APPREHEND DRINKERS OR TO BREAK UP COVERT CHRISTIAN SERVICES OBSERVANCE OF ANY RELIGION OTHER THAN ISLAM IS STRICTLY BANNED MEANWHILE BEHEADINGS SUSPENDED DURING THE GULF CRISIS HAVE RETURNED WHILE MOST SAUDIS SUPPORT THE BEHEADINGS PERFORMED BY SWORDSMEN IN CROWDED CENTRAL SQUARES MANY WERE SURPRISED WHEN A SHIITE RECENTLY WAS EXECUTED FOR BLASPHEMING ISLAM THEN IN DECEMBER TWO FILIPINOS WERE REPORTEDLY SENTENCED TO DIE ON CHRISTMAS DAY FOR PREACHING CHRISTIANITY THEY WERE DEPORTED INSTEAD IT'S ALWAYS BEEN TOUGH FOR NONMUSLIMS HERE BUT NOW SOME OF US ARE WORRYING THAT THERE COULD BE A REAL CRUSADE SAYS A WESTERN BUSINESSMAN WHO SAYS HE RECENTLY HAD A RUBBER SANTA CLAUS A GIFT FOR HIS SON SEIZED AT JIDDA AIRPORT MOST SAUDIS DATE THE BACKLASH TO NOVEMBER 1990 WHEN 47 SAUDI WOMEN DROVE THROUGH RIYADH TO PROTEST AN INFORMAL BAN ON WOMEN DRIVING EXTREMISTS BRANDED THE WOMEN PROSTITUTES AND THE STATE FIRED THEM FROM PUBLIC JOBS TOOK THEIR PASSPORTS AND MADE THE BAN ON FEMALE DRIVING OFFICIAL THE PASSPORTS HAVE BEEN RETURNED AND MOST OF THE WOMEN HAVE BEEN REINSTATED BUT THEIR FATE HAS SILENCED SAUDI LIBERALS WHO HAD HOPED THE WAR WOULD OPEN UP THEIR SOCIETY WE CAME OUT OF THE CLOSET WHEN THE AMERICANS WERE HERE AND NOW WE'RE BACK IN IT SAYS A FORMERLY OUTSPOKEN BUSINESSMAN HE AND OTHER LIBERALS BLAME THE WEST FOR FAILING TO URGE CHANGE ON THE ROYAL FAMILY IN THE WAKE OF THE WAR CLEARLY THERE IS LITTLE OR NO PRESSURE NOW IT ISN'T SOMETHING WE SPEND A LOT OF TIME TALKING ABOUT SAYS A WESTERN DIPLOMAT WHEN ASKED IF HUMAN RIGHTS AND POLITICAL REFORM ARE EVER RAISED WITH SENIOR SAUDIS THERE IS LITTLE OBVIOUS REASON TO ROCK THE BOAT PARTICULARLY FOR THE US THE SAUDIS PROVIDE THE US WITH A QUARTER OF ITS OIL IMPORTS THE TWO NATIONS ARE PARTNERS IN REGIONAL DEFENSE US PLANES IN DHAHRAN COULD BE USED TO STRIKE IRAQ AGAIN OVER ITS INCURSIONS INTO EXCLUDED ZONES THIS WEEK THE SAUDIS HAVE BOUGHT MORE THAN 25 BILLION IN US ARMS SINCE AUGUST 1990 NONLETHAL US EXPORTS ALSO HAVE BOOMED WITH ABOUT 8 BILLION IN SALES IN 1992 ALMOST DOUBLE THE SUM TWO YEARS AGO FOR FORD MOTOR CO AND CHRYSLER CORP SAUDI ARABIA IS THE SINGLE BIGGEST FOREIGN MARKET THE SAUDIS ALSO BACK MIDEAST PEACE TALKS THOUGH NOT AS VIGOROUSLY AS THE US WOULD LIKE ONE REASON IS THE SAUDI PUBLIC'S AVERSION TO COMPROMISE WITH ISRAEL A STANCE THE STATE HAS NURTURED WITH YEARS OF PROPAGANDA ONLY RECENTLY DID THE SAUDI MEDIA BEGIN REFERRING TO ISRAEL RATHER THAN TO THE ZIONIST ENEMY A JIDDA JOURNALIST WARNS THAT ANTIISRAELI SENTIMENT COULD GROW IF THE WEST WANTS PEACE IT SHOULD MAKE IT HAPPEN NOW HE SAYS BECAUSE IF YOU WAIT UNTIL THE ARAB STREET HAS A SAY IT WILL NEVER HAPPEN IN OTHER WAYS THE STREET IN SAUDI ARABIA IS SPEAKING OUT AS NEVER BEFORE THIS TRADITIONALLY DEFERENTIAL SOCIETY NOW IS BURSTING WITH POLITICAL JOKES MOST DEPICT THE KING AS A WITLESS DESPOT OTHERS POKE FUN AT HIS NEW ADVISORY COUNCIL WHICH SAUDIS REGARD AS A MOCKERY OF THE KING'S WARTIME PROMISE TO SHARE MORE POWER KING FAHD ALSO IS FAULTED FOR SEEKING PRESTIGE OVERSEAS WHILE NEGLECTING HIS OWN SUBJECTS MANY SAUDIS FOR INSTANCE WERE IRKED WHEN HE GAVE MILLIONS OF DOLLARS FOR THE REBUILDING OF EARTHQUAKEDAMAGED SCHOOLS IN CAIRO WHILE SAUDI SCHOOLS OFTEN HAVE 40 CHILDREN TO A CLASSROOM SAUDIS ALSO WANT TO KNOW WHERE ALL THE MONEY IS GOING FROM THE STAGGERING 84 MILLION BARRELS A DAY OF OIL THE STATE PRODUCES THEY DISGUSTEDLY RECOUNT THE RUMORED PRICE TAGS FOR EACH GILDED PALACE ON JIDDA'S PALMLINED KING'S ROAD AND GRIPE ABOUT THE PRACTICE THAT ALLOWS PRINCES AND THEIR RETAINERS TO RAKE OFF 30 COMMISSIONS FOR BUSINESS TRANSACTIONS MISMANAGEMENT ALSO IS DRAINING THE NATION'S RESOURCES THE COUNTRY'S WATER CRISIS IS THE MOST GLARING EXAMPLE THOUGH A DESERT NATION WITH ALMOST NO INDUSTRY SAUDI ARABIA IS ONE OF THE HIGHEST PER CAPITA WATER USERS IN THE WORLD THE MAIN REASON IS SUBSIDIZED GROWING OF WHEAT WHICH THE STATE BUYS FROM FARMERS AT FOUR TIMES THE WORLD PRICE SINCE THERE'S A VAST SURPLUS THE STATE SELLS OR GIVES AWAY MOST OF THE WHEAT OVERSEAS MAKING THE DESERT KINGDOM THE WORLD'S SIXTH BIGGEST WHEAT EXPORTER ONE TON OF SAUDI WHEAT CONSUMES 2000 TONS OF WATER DRAINING PRECIOUS AQUIFERS ASKED WHY THE STATE STILL SUBSIDIZES WHEAT AN OFFICIAL SAYS THE FARMS ARE OWNED BY INFLUENTIAL FAMILIES AND THE AGRICULTURE MINISTER HAS THE KING'S EAR SAUDIS SAY SUCH PROBLEMS SHOW HOW INSULATED KING FAHD HAS BECOME VIEWED AS A PROGRESSIVE A DECADE AGO HE HAS SINCE CENTRALIZED POWER AND SHUT OUT FRESH VOICES TO THE POINT OF PARALYZING THE SYSTEM IF YOU KNOW THE KING WILL SUPPORT YOU NO MATTER WHAT ONE YOUNG OFFICIAL SAYS OF THE KING'S GERIATRIC INNER CIRCLE DOES IT MATTER IF YOU BECOME LAZY OR CORRUPT IN AN UNUSUAL STEP KING FAHD RECENTLY REMOVED SENIOR CLERICS WHO FAILED TO CONDEMN THE FUNDAMENTALISTS' PETITION AND ALSO ATTACKED HARDLINERS FOR USING THE MOSQUE AS A POLITICAL PULPIT BUT MANY SAUDIS WONDER HOW WELL THE STATE CAN WEATHER THE NEXT CRISIS WHETHER IT SHOULD BE THE DEATH OF THE 71YEAROLD KING A FALL IN OIL PRICES OR A FRESH MILITARY CHALLENGE SAUDIS ARE ANXIOUS ABOUT IRAN'S RESURGENCE AND THE ROYAL FAMILY STILL IS FEUDING WITH THE LEADERS OF YEMEN SUDAN AND JORDAN OVER THEIR SUPPORT FOR IRAQ IN THE GULF WAR SAUDI SOLDIERS HAVE EVEN SKIRMISHED WITH TINY QATAR OVER THE TWO NATIONS' DESERT BORDER BOMB SHELTERS ARE IN SAYS AN ARCHITECT WHO RECENTLY INSTALLED A 100000 HOME BUNKER OSTENTATION IS OUT HE ADDS BECAUSE PEOPLE WANT TO AVOID TERRORISM OFFICIALLY THOUGH TALK OF SAUDI INSECURITY REMAINS UNDER WRAPS ANY MENTION OF THE GULF CRISIS IS BANNED AT SAUDI SCHOOLS LEST IT REMIND YOUNG PEOPLE OF SAUDI VULNERABILITY OR RAISE QUESTIONS BEST LEFT UNANSWERED THE CRISIS IS SOMETHING POLITICAL WHICH WE CANNOT DISCUSS EXPLAINS AHMED ABDUL RASHEED AN ENGLISH TEACHER AT A JIDDA MIDDLE SCHOOL TOURING THE PLAYGROUND HE SHOWS OFF PICTURES DRAWN BY STUDENTS AND PASTED TO THE WALLS MOST OF THEM ON ISLAMIC THEMES THEN HE PAUSES AT A POSTER SHOWING TANKS PLANES AND SOLDIERS IN DESERT CAMOUFLAGE REMINISCENT OF OPERATION DESERT STORM THIS IS NOTHING REAL MR RASHEED SAYS MOVING QUICKLY TO THE NEXT PICTURE IT IS JUST SOME IMAGINING OF WAR 9301130047 930113 TECHNOLOGY BRIEF CYGNUS THERAPEUTIC SYSTEMS NEW DRUGDELIVERY SYSTEM IS IN EARLY DEVELOPMENT CYGNUS THERAPEUTIC SYSTEMS REDWOOD CITY CALIF SAID IT IS IN THE EARLY STAGES OF DEVELOPING A DRUGDELIVERY SYSTEM THAT USES ELECTRICAL PULSES TO OPEN PATHWAYS IN TISSUE ALLOWING MORE OF THE DRUG TO REACH THE DISEASED AREA THE SYSTEM IS A LONG WAY FROM COMMERCIAL USE BUT CYGNUS SAID IT COULD IMPROVE CANCER TREATMENT BY GETTING MORE OF THE CANCERFIGHTING DRUGS INTO TUMORS AMONG OTHER POSSIBLE BENEFITS SEPARATELY CYGNUS SAID IT AGREED TO EXCHANGE RESEARCH WITH THE FRUMKIN INSTITUTE OF ELECTROCHEMISTRY WHICH IS BASED IN MOSCOW SCIENTISTS AFFILIATED WITH THE INSTITUTE MADE SOME OF THE EARLIEST DISCOVERIES IN THE FIELD OF USING ELECTRICAL PULSES TO ENHANCE DRUG DELIVERY IN OVERTHECOUNTER TRADING YESTERDAY CYGNUS CLOSED AT 11125 UP 125 CENTS 9301130046 930113 LEISURE & ARTS BOOKSHELF AND HOW THE WORLD CHANGED AMERICA BY FRED CHARLES IKLE PEOPLE SHAPE HISTORY AND HISTORY SHAPES PEOPLE THE TITLE OF ALEXANDER M HAIG'S INNER CIRCLES HOW AMERICA CHANGED THE WORLD WARNER 610 PAGES 2295 IS ONLY HALF THE STORY THE OTHER HALF A BIT HIDDEN BETWEEN THE LINES IS HOW THE WORLD CHANGED AMERICA YET THIS SECOND ASPECT IS ALL THE MORE ENGROSSING BECAUSE THE AUTHOR WAS BOTH A TRANSMITTER AND A SUBJECT OF CHANGE THAT THE OUTSIDE WORLD IMPOSED ON OUR REPUBLIC AT FIRST ENCOUNTER THE READER SEES A SERIES OF STORIES COAUTHORED BY CHARLES MCCARRY EACH ENGAGINGLY WRITTEN EACH DEALING WITH A MAJOR HISTORIC EPISODE FROM THE KOREAN WAR THROUGH THE MANY PHASES OF THE WAR IN VIETNAM TO THE FIRST YEARS OF THE REAGAN ADMINISTRATION IT IS THE UNABASHED QUALITY OF A MEMOIR THAT PROVIDES THE TEXTURE TYING ALL THESE STORIES TOGETHER THE WARP AND WOOF OF THESE STORIES ARE THE AUTHOR'S LIFETIME OF PUBLIC SERVICE AND HIS KEEN SENSE OF AND CONSTANT CONCERN FOR NATIONAL STRATEGY SEVERAL CHAPTERS DEAL WITH THE SUCCESSIVE PHASES OF AMERICA'S INVOLVEMENT IN THE WARS IN INDOCHINA AND OF THE IMPACT OF VIETNAM ON AMERICA MR HAIG WAS A STAGEHAND DURING ONE OF THE FIRST ACTS IN THIS TRAGEDY AS A LIEUTENANT COLONEL IN THE PENTAGON HE WAS ORDERED BY THE CHIEF OF STAFF OF THE ARMY TO PREPARE LISTS OF RECOMMENDED ACTIONS DURING A MUCH LATER ACT OF THE TRAGEDY MR HAIG WAS ON CENTER STAGE AS WHITE HOUSE CHIEF OF STAFF WHERE HE WRESTLED DAILY WITH VIETNAM'S ONSLAUGHT ON THE HOME FRONT IT IS A MEASURE OF THE HISTORIC DAMAGE THAT THE US INFLICTED ON ITSELF BY ITS MISTAKEN POLICIES ON INDOCHINA THAT THE FINAL ACT OF THE TRAGEDY IS STILL ONSTAGE TODAY BEING PLAYED BY PLANNING STAFFS IN THE PENTAGON MR HAIG'S DISTANT SUCCESSORS PEOPLE WHO STILL SUFFER FROM THE VIETNAM SYNDROME WE HAVE ONLY TO NOTE THE PENTAGON'S INSISTENCE ON CASTING AMERICA'S OPTIONS FOR BOSNIA AS A CHOICE BETWEEN DOING NOTHING OR PLUNGING HEADLONG INTO A VIETNAMLIKE QUAGMIRE IT IS A BUREAUCRATIC MIRACLE THAT THE CARTER ADMINISTRATION IN ITS LAST YEAR AND THE TWO REAGAN ADMINISTRATIONS WERE ABLE TO FORGE AN EFFECTIVE POLICY FOR AFGHANISTAN INCIDENTALLY MR HAIG'S MEMOIRS DO NOT TOUCH ON THE US POLICY TOWARD THE SOVIET INVASION OF AFGHANISTAN HAD THEY COVERED THAT EPISODE AS WELL MR HAIG COULD HAVE RECALLED WITH SATISFACTION HIS OWN CONTRIBUTION TO THAT SUCCESS STORY I REMEMBER WELL HOW MR HAIG BARELY SWORN IN AS RONALD REAGAN'S SECRETARY OF STATE MADE SURE PAKISTAN WOULD RECEIVE MORE EFFECTIVE US ASSISTANCE TO ENCOURAGE ITS BRAVE SUPPORT OF THE AFGHAN FREEDOM FIGHTERS THE LARGE GOLDEN NUGGET IN MR HAIG'S MEMOIRS IS THE DESCRIPTION OF THE MOST EXTRAORDINARY 15 MONTHS IN HIS EXTRAORDINARY CAREER THE TUMULTUOUS PERIOD DURING THE WATERGATE CRISIS WHEN HE SERVED AS DE FACTO CHIEF EXECUTIVE OFFICER OF THE NIXON ADMINISTRATION THE WATERGATE CRISIS OF COURSE DID NOT REMAIN A SINGLE CRISIS AS ANYONE WHO HAS SERVED IN GOVERNMENT KNOWS CRISES ALWAYS COME IN MULTIPLES MR HAIG'S ABSORBING RECOLLECTIONS REMIND US THAT RICHARD NIXON'S WHITE HOUSE AND THE NATION HAD TO NAVIGATE THROUGH AT LEAST A QUADRUPLE CRISIS FIRST THE OVERARCHING WATERGATE CRISIS ITSELF SECOND THE SEVERING OF SPIRO AGNEW FROM THE VICE PRESIDENCY THIRD THE 1973 MIDEAST CRISIS AND FOURTH AS AN OVERLAY SIMULTANEOUS WITH THE MIDEAST CRISIS MR NIXON'S FIRING OF SPECIAL PROSECUTOR ARCHIBALD COX AND DEPUTY ATTORNEY GENERAL WILLIAM RUCKELSHAUS WHICH IN TURN TRIGGERED THE RESIGNATION OF ELLIOT RICHARDSON AS ATTORNEY GENERAL WHICH MR HAIG STRUGGLED TO FORESTALL THE PASSAGES THAT DEAL WITH THESE INTERLOCKING CRISES OFFER CAPTIVATING STUDIES OF STRONG PERSONALITIES WHO BY FORCE OF CIRCUMSTANCES WERE COMPELLED TO COOPERATE AS WELL AS TO COLLIDE TO SUPPORT EACH OTHER AS WELL AS TO OPPOSE EACH OTHER MR HAIG'S DESCRIPTION OF THESE INTERLOCKING INNER CIRCLES CONVEYS BOTH THE HISTORIC DRAMA AND PSYCHOLOGICAL TENSION OF THIS STRESSED PERIOD FOR ANY MEMOIRS WRITTEN 10 20 YEARS AFTER THE EVENT THE QUESTION OF ACCURACY OF RECALL LOOMS LARGE EVEN IF IT WERE NOT FOR UNCONSCIOUS AND CONSCIOUS DISTORTIONS DRIVEN BY THE VERY HUMAN DESIRE TO EMBELLISH ONE'S PAST MR HAIG INFORMS US THAT THESE MEMOIRS REFLECT AN ATTEMPT TO AUGMENT THE HISTORICAL RECORD HE HAS SUCCEEDED BRILLIANTLY IN ENGAGING THE READER'S INTEREST AND PROVIDING HISTORIANS WITH A RICH LODE OF IMPORTANT RECOLLECTIONS HE USES DIRECT QUOTES EXTENSIVELY TO DESCRIBE HIS PAST CONVERSATIONS PRESUMABLY TO MAKE HIS STORY MORE LIVELY A PEDANTIC HISTORIOGRAPHER MIGHT OBJECT TO THIS MR HAIG'S NOTE ON SOURCES DOES NOT MENTION ANY DIARIES ARE THERE ANY OR WAS WATERGATEBATTLEHARDENED MR HAIG TOO SMART TO KEEP DIARIES WATERGATE ONE MUST EXPECT ENDED ONCE AND FOR ALL THE INDISCRIMINATE TAPING OF WHITE HOUSE CONVERSATIONS NOW LAWRENCE WALSH'S ONGOING VENDETTAS ONE MUST EXPECT ARE ENDING ONCE AND FOR ALL THE KEEPING OF DIARIES BY SENIOR US OFFICIALS WOE TO FUTURE HISTORIANS MR IKLE IS AFFILIATED WITH THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON DC 9301130045 930113 WORKPLACE LABOR BROADENS ITS APPEAL BY SETTING UP ASSOCIATIONS TO LOBBY AND OFFER SERVICES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL MEET THE LABOR MOVEMENT'S NEW RANK AND FILE OUT IN STANFORD MONT POP 750 NOT EXACTLY A HOTBED OF LABOR AGITATION LIVES BARB SKELTON WHO JOINED THE CAUSE EVEN THOUGH SHE OWNS AND RUNS HER OWN CATTLE RANCH OVER IN CINCINNATI A MENTALHEALTH THERAPIST NAMED CAROLINE IDINOPULOS FAITHFULLY PAYS DUES EVEN THOUGH SHE WORKS IN A NONUNION SHOP AND IN BROOKLYN NY THERE'S SANTOS RODRIGUEZ A 62YEAROLD IMMIGRANT FROM MEXICO CITY EARNING 350 AN HOUR IN A GARMENT SHOP HE ISN'T REPRESENTED BY A UNION BUT HE RELIES ON UNION PROGRAMS TO LEARN ENGLISH AND THE WAYS OF SEWING MACHINES THESE AREN'T YOUR TYPICAL RANK AND FILERS BUT THEN THESE AREN'T YOUR TYPICAL UNIONS THE GROUPS UNIONBACKED WORKER ASSOCIATIONS WITH SUCH NAMES AS THE NATIONAL ASSOCIATION FOR WORKING AMERICANS ESCHEW COLLECTIVE BARGAINING AND CONFRONTATION THEY INSTEAD OFFER HELP ON A RANGE OF WORKPLACE ISSUES FROM REPETITIVE STRESS INJURIES TO IMMIGRATION IN ORDER TO BROADEN LABOR'S SHRINKING CONSTITUENCY TO SOME IN THE LABOR MOVEMENT THIS KINDER GENTLER APPROACH IS JUST WHAT UNIONS NEED TO STEM THEIR DECLINE TO OTHERS IT'S JUST WATERED DOWN UNIONISM AT ANY RATE THESE GRASSROOTS GROUPS OFFER THE LABOR MOVEMENT GROWTH WORKER ASSOCIATIONS NOW CLAIM HALF A MILLION MEMBERS AT A TIME WHEN UNION MEMBERSHIP HAS FALLEN TO MODERNDAY LOWS WE'RE REPRESENTING A SMALLER AND SMALLER PORTION OF THE WORK FORCE SAYS ILES MINOFF THE AFLCIO OFFICIAL WHO COORDINATES THE NEW ASSOCIATE MEMBERSHIP PROGRAM AND HAS HELPED FORM FOUR ASSOCIATIONS IN THE LAST FEW YEARS MEMBERSHIP IN TRADITIONAL UNIONS HAS DROPPED 29 TO 161 MILLION IN THE LAST 15 YEARS AS WORKPLACES HAVE GROWN SMALLER AND WORKERS MORE INDEPENDENT WHILE TRADITIONAL UNIONS SPEND THEIR TIME PROTECTING WAGES AND BENEFITS FOR AN INCREASINGLY NARROW MEMBERSHIP WORKER ASSOCIATIONS APPEAL TO GROWING SEGMENTS OF THE WORK FORCE OFTEN WOMEN AND IMMIGRANTS IN LOWWAGE JOBS AND TO NONTRADITIONAL MEMBERS SUCH AS SUPERVISORS AND WORKERS IN NONUNION SHOPS INSTEAD OF FIGHTING FOR PAY INCREASES THE ASSOCIATIONS SEEK PAY EQUITY HEALTH CARE JOB TRAINING AND FAMILY LEAVE THEY PROVIDE LEGAL ADVICE LANGUAGE TUTORING AND SKILLS TRAINING AND THEY ADVISE WORKERS MEMBERS AND NONMEMBERS ALIKE ABOUT SEXUAL HARASSMENT AND VDT INJURIES THEY ESSENTIALLY HELP PEOPLE SHAPE CAREERS SAYS CHARLES C HECKSCHER CHAIRMAN OF THE LABOREDUCATION DEPARTMENT AT RUTGERS UNIVERSITY UNIONS ON THE OTHER HAND DON'T MATCH VERY WELL TO THE DIRECTION EMPLOYERS ARE MOVING IN FOR THAT REASON PROF HECKSCHER BELIEVES ASSOCIATIONS WILL EVENTUALLY SUPPLANT UNIONS SOME HOWEVER FEAR A WHOLESALE SHIFT WOULD ONLY FURTHER ERODE WORKERS' POWER ASSOCIATE MEMBERSHIP CAN DO A LOT BUT IT'S GROUP ACTION THAT GETS RESULTS SAYS RONALD BAKER ORGANIZING DIRECTOR FOR THE UNITED MINE WORKERS COLLECTIVE BARGAINING IS AND WILL REMAIN THE WAY PEOPLE RECEIVE JUSTICE ON THE JOB THE ASSOCIATIONS EMULATING EUROPEAN LABOR'S POLITICAL ACTIVISM HOPE THEY CAN BE POWERFUL ENOUGH AT LOBBYING GOVERNMENT ON WORKERS' ISSUES THAT THEIR MEMBERS WON'T NEED TO RELY ON LABOR CONTRACTS THAT'S HOW ANNE NOONAN SEES IT A SECRETARY AT HOFSTRA UNIVERSITY IN HEMPSTEAD NY MS NOONAN WAS HAVING TROUBLE IN 1989 WITH HER UNION LOCAL 153 OF THE OFFICE AND PROFESSIONAL EMPLOYEES INTERNATIONAL UNION WHEN MS NOONAN COMPLAINED THAT THE SECRETARIES MOSTLY WOMEN WERE MAKING LESS THAN THE MOSTLY MALE CUSTODIANS HER UNION REPS TOLD HER SHE SAYS THAT'S JUST THE WAY THINGS ARE' THEY WERE REALLY NOT INTO WOMEN'S ISSUES THE UNION DIDN'T RESPOND TO REQUESTS FOR COMMENT MS NOONAN CALLED IN REPRESENTATIVES FROM 9 TO 5 THE NATIONAL ASSOCIATION FOR WORKING WOMEN A CLEVELANDBASED ASSOCIATION AFFILIATED WITH THE SERVICE EMPLOYEES INTERNATIONAL UNION THE GROUP GAVE A TALK ON PAY EQUITY AND ENCOURAGED THE SECRETARIES TO START A PETITION DRIVE AIMED AT UNION OFFICIALS THE WORKERS ULTIMATELY WENT ON STRIKE FOR SIX WEEKS AND CAME BACK WITH BIG RAISES MOST OF THE WOMEN WOULDN'T HAVE BECOME MILITANT IF 9 TO 5 HADN'T COME AND GIVEN THAT TALK MS NOONAN SAYS 9 TO 5 CAN'T GIVE US UNION PROTECTION BUT WHAT THEY DO IN EDUCATION IS AT LEAST AS VALUABLE THE LONG ISLAND 9 TO 5 CHAPTER ONE OF 26 CHAPTERS OF THE 15000MEMBER GROUP OFTEN GIVES TALKS ON PAY EQUITY SEXUAL HARASSMENT AND SAFETY TO LOCAL OFFICE WORKERS THOUGH USUALLY WHEN INVITED BY AN EMPLOYER THE GROUP FUNDED BY A STATE GRANT ALSO OPERATES A HOTLINE TO HELP WORKERS WITH WORKPLACE PROBLEMS IN RESPONSE TO ONE CALL THE GROUP'S DIRECTOR LOIS ROBERTS TOOK AN HOURLONG DRIVE TO GET A TEENAGE GIRL REINSTATED AT HER CONVENIENCESTORE JOB THE GIRL WHO WASN'T A 9 TO 5 MEMBER HAD BEEN FIRED AFTER BEING TOLD SHE DRESSED PROVOCATIVELY WE WILL RESPOND TO ANY REASONABLE REQUEST MS ROBERTS SAYS UNIONS ALSO USE ASSOCIATIONS TO REACH UNORGANIZED PARTS OF THE WORK FORCE IN MONTANA FOR EXAMPLE WHERE THE WORKPLACE IS OFTEN A SMALL FARM OR RANCH WORKER SOLIDARITY HAS LITTLE APPEAL SO THE AFLCIO THREE YEARS AGO SPONSORED A MONTANA FAMILY UNION WHICH OFFERS UNION BENEFITS INCLUDING GROUP HEALTH CARE AND CREDIT CARDS WITHOUT UNION REPRESENTATION THE GROUP HAS SIGNED ON 1400 MEMBERS INCLUDING GOVERNMENT OFFICIALS SMALL BUSINESS OWNERS AND EVEN PRIESTS MAKING IT LARGER THAN ALL BUT TWO UNIONS IN THE STATE IT'S PRETTY MUCH NEIGHBOR HELPING NEIGHBOR SAYS BARB SKELTON THE RANCHER AND ONE OF THE MONTANA FAMILY UNION'S NEW MEMBERS MS SKELTON SAYS SHE JOINED BECAUSE THE UNION'S MAJOR MEDICAL PLAN CUTS HER MONTHLY PREMIUMS TO 65 A MONTH FROM 131 I CAN'T GET THAT ANYWHERE ELSE SHE SAYS THE ASSOCIATIONS GIVE UNIONS A FOOT IN THE DOOR AT WORKPLACES THAT OTHERWISE WOULD SHUT THEM OUT AT THE TYPE OF GARMENT SHOP IN BROOKLYN THAT EMPLOYS SANTOS RODRIGUEZ THE MEXICAN IMMIGRANT THE INTERNATIONAL LADIES GARMENT WORKERS UNION CAN'T HOPE TO ORGANIZE THE WORK FORCE JUST YET THE IMMIGRANT WORKERS ARE TOO FEARFUL OF LOSING THEIR JOBS INSTEAD THE UNION HAS AN ASSOCIATEMEMBER PROGRAM TO OFFER UNION SERVICES TO THE NONUNION WORKERS FOR MR RODRIGUEZ THAT MEANS ENGLISH LESSONS SKILLS TRAINING AND MEDICAL INSURANCE IT HELPS ME WITH EVERYTHING I NEED MR RODRIGUEZ SAYS IN HIS BROKEN ENGLISH PERHAPS THE ASSOCIATIONS' GREATEST CHALLENGE HOWEVER IS WINNING BACK THE WORKERS THAT UNIONS HAVE LOST THE VAST NUMBER OF AMBIVALENT EMPLOYEES WHO SUPPORT LABOR BUT HAVE BEEN DISILLUSIONED BY UNIONS' SOMETIMES SHORTSIGHTED BEHAVIOR CAROLINE IDINOPULOS THE CINCINNATI THERAPIST AND A NEW RECRUIT TO THE AFLCIO'S NATIONAL ASSOCIATION FOR WORKING AMERICANS IS ONE SUCH LOST MEMBER ABOUT FIVE YEARS AGO MS IDINOPULOS AND OTHERS AT THE COUNTY MENTALHEALTH CENTER WHERE SHE WORKS VOTED TO BE REPRESENTED BY THE NATIONAL UNION OF HOSPITAL AND HEALTH CARE EMPLOYEES BUT WHEN THE WORKERS NEGOTIATED THEIR FIRST CONTRACT THE UNION'S DISTRICT LEADERSHIP WOULDN'T APPROVE IT OVER PROTESTS FROM THE WORKERS BECAUSE OF A SPAT WITH THE COUNTY AT OTHER FACILITIES TO MS IDINOPULOS AND HER COWORKERS IT SEEMED THE UNION WAS MORE INTERESTED IN PUNISHING THE COUNTY THAN IN REPRESENTING THEM THE WORKERS SOON VOTED THE UNION OUT THEY REALLY WEREN'T WITH US SHE SAYS THE UNION NOW PART OF THE SERVICE EMPLOYEES SAYS IT HAD THE SUPPORT OF WORKERS AT OTHER MENTALHEALTH CENTERS WITHOUT A UNION MS IDINOPULOS INSTEAD TURNED TO THE AFLCIO ASSOCIATION SHE PAYS 20 IN ANNUAL DUES AND WORKED THE PHONES FOR THE GROUP DURING THE CLINTON CAMPAIGN ALL UNIONS DON'T OPERATE THE WAY I'D LIKE THEM TO BUT EMPLOYEES NEED AN ORGANIZATION SO THEY HAVE SOME DEGREE OF MUSCLE SHE SAYS I DON'T HAVE ANY ILLUSIONS ABOUT WHAT NAWA CAN DO FOR ME BUT IT'S MY WAY OF STANDING UP AND BEING COUNTED 9301130044 930113 BUSINESS BRIEF WASHINGTON FEDERAL SAVINGS & LOAN SEATTLE THRIFT'S NET INCOME ROSE 12 IN ITS 1ST QUARTER WASHINGTON FEDERAL SAVINGS & LOAN ASSOCIATION SAID NET INCOME IN ITS FIRST QUARTER ENDED DEC 31 ROSE 12 TO 22239000 OR 67 CENTS A SHARE IN THE YEAREARLIER QUARTER THE SEATTLEBASED THRIFT EARNED 199 MILLION OR 60 CENTS A SHARE WASHINGTON FEDERAL WHICH HAS ASSETS OF ABOUT 3 BILLION HAS CONSISTENTLY BEEN ONE OF THE TOP THRIFT PERFORMERS IN THE COUNTRY EVEN AT THE HEIGHT OF THE S&L CRISIS WHICH WIPED OUT MANY OF ITS COMPETITORS THE COMPANY IS KNOWN FOR DETERMINED COST CONTROLS AND CONSERVATIVE LENDING PRACTICES IN OVERTHECOUNTER TRADING YESTERDAY WASHINGTON FEDERAL ROSE 125 CENTS TO CLOSE AT 27125 9301130043 930113 BUSINESS BRIEF SEAGATE TECHNOLOGY INC NET SURGED TO 633 MILLION IN FISCAL SECOND QUARTER SEAGATE TECHNOLOGY INC SCOTTS VALLEY CALIF SAID NET INCOME IN THE SECOND QUARTER ENDED JAN 1 SURGED TO 633 MILLION OR 91 CENTS A SHARE THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS SEAGATE MAKES DISK DRIVES AND LIKE OTHER MAKERS OF PERSONAL COMPUTER PARTS IT IS BENEFITING FROM BOOMING PC SALES TRIGGERED BY PC PRICE WARS SEAGATE SAID REVENUE JUMPED ABOUT 12 TO 7767 MILLION FROM 6951 MILLION A YEAR EARLIER IN THE YEAREARLIER QUARTER SEAGATE HAD NET OF 11 MILLION OR 17 CENTS A SHARE 9301130042 930113 BUSINESS BRIEF RAYTHEON CO PATRIOT MISSILE CONTRACT IS VALUED AT 327 MILLION RAYTHEON CO LEXINGTON MASS SAID IT WAS AWARDED A 327 MILLION CONTRACT TO SELL FIVE PATRIOT MISSILE LAUNCHERS AND 210 MISSILES TO KUWAIT THE LATEST IN A STRING OF FOREIGN SALES THAT HAVE FOLLOWED THE PATRIOT'S USE IN THE 1991 GULF WAR THE COMPANY SAID IT EXPECTS REVENUE RELATED TO THE CONTRACT TO GROW TO MORE THAN 450 MILLION THROUGH ADDITIONAL AWARDS FOR SUPPORT EQUIPMENT AND SERVICES NO TIME FRAME WAS GIVEN FOR THE CONTRACT SALES REVENUE IN LATE DECEMBER RAYTHEON SAID IT RECEIVED A 103 BILLION PATRIOT CONTRACT FROM SAUDI ARABIA WHERE MANY OF THE MISSILES WERE USED AGAINST IRAQI SCUD MISSILES DURING THE WAR WALTER TRAINOR RAYTHEON'S PROGRAM MANAGER FOR THE PATRIOT SAID THE KUWAITI SALE REINFORCES THE MISSILE'S STRONG FOREIGN SALES POTENTIAL THE KUWAITI CONTRACT WAS AWARDED BY THE US ARMY MISSILE COMMAND IN HUNTSVILLE ALA 9301130041 930113 FOREIGN EXCHANGE DOLLAR ENDS MIXED AGAINST YEN MARK BUT GAINS ON STERLING AND SWISS FRANC BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MIXED TUESDAY WITH LITTLE NEWS TO STIR IT FROM NARROW RANGES AGAINST THE MARK AND THE YEN IN AN OTHERWISE TRENDLESS MARKET DEALERS SAID ACTIVITY FOCUSED ON THE POUND AND THE SWISS FRANC AND A COMBINATION OF FUNDAMENTAL AND TECHNICAL FACTORS COMBINED TO CARRY THE DOLLAR HIGHER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16307 MARKS OFF SLIGHTLY FROM 16330 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 12520 YEN LITTLE CHANGED FROM 12515 YEN STERLING WAS TRADING AT 15445 OFF FROM 15540 THE DOLLAR CLIMBED TO 14985 SWISS FRANCS TUESDAY FROM 14905 FRANCS ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16346 MARKS AND AT 12555 YEN THERE ARE SOME GOOD MOVEMENTS WITHIN THE RANGES BUT THERE'S NOTHING TO CAUSE IT TO BREAK SAID RICHARD BARNETT CHIEF DEALER AT STANDARD CHARTERED BANK PLC IN NEW YORK MARKET INTEREST IN THE WAR OF WORDS BETWEEN THE UNITED NATIONS AND IRAQ HAS FADED DEALERS SAID LEAVING DOLLAR BULLS TO LOOK TO THE US ECONOMY FOR ENCOURAGEMENT BUT THE MOST RECENT ECONOMIC DATA FRIDAY'S DISAPPOINTING DECEMBER EMPLOYMENT REPORT HAVE SOME INVESTORS WONDERING WHETHER THE MARKET'S EXPECTATIONS OF RECOVERY IN THE US HAVE OUTPACED REALITY DEALERS SAID RICHARD VULLO SENIOR MARKETING REPRESENTATIVE AT BANK OF MONTREAL IN NEW YORK SAID IT LEAVES PEOPLE A LITTLE PUZZLED ON WHERE TO GO AT THE SAME TIME DEALERS SAID PLAYERS REMAIN CONVINCED THE DOLLAR EVENTUALLY WILL HEAD HIGHER AND SELLERS WILL HAVE TROUBLE PUSHING THE DOLLAR SHARPLY LOWER WITH THE DOLLAR CONFINED TO SLENDER BANDS AGAINST THE MARK AND THE YEN DEALERS SAID SHORTTERM PLAYERS TURNED TO STERLING AND THE SWISS FRANC IN A BID TO TO MAKE SOME MONEY WITH PRESSURES IN THE EUROPEAN EXCHANGE RATE MECHANISM EASING DEALERS SAID THE POUND'S ALLURE FADED IN WHAT PLAYERS CALLED A SIGN THAT THE LATEST ROUND OF TENSIONS HAD ENDED IRELAND LOWERED THE INTERESTRATE WALL PROTECTING THE IRISH POUND OR PUNT TUESDAY THE CENTRAL BANK OF IRELAND SLASHED ITS OVERNIGHT RATE TO 30 FROM 100 IN ADDITION THE MARKET'S WANING INTEREST IN MIDDLE EAST TROUBLES UNDERMINED STERLING DEALERS SAID THE UK A MAJOR OIL PRODUCER USUALLY ATTRACTS INVESTORS IN SUCH CRISES DEALERS SAID AS THE SHORTTERM FUNDAMENTAL ARGUMENTS TURNED AGAINST THE POUND DEALERS SAID TECHNICAL SIGNS ALSO POINTED TO A SELLOFF DON QUATTRUCCI ASSISTANT VICE PRESIDENT AT CONNECTICUT NATIONAL BANK SAID THAT AFTER PLAYERS PUSHED STERLING TO THE TECHNICAL TARGET OF 15600 EARLY TUESDAY THEY TOOK PROFITS AFTER MONDAY'S GAIN OF MORE THAN TWO CENTS DEALERS SAID THE POUND WAS RIPE FOR A PULLBACK STERLING ALSO TUMBLED AGAINST THE MARK FALLING TO 25191 MARKS LATE IN NEW YORK FROM 25369 MARKS THE SWISS FRANC ANOTHER TRADITIONAL ERM HAVEN ALSO WAS HIT AS THE SYSTEM SETTLED DOWN DEALERS SAID LATE TUESDAY IN NEW YORK THE MARK WAS QUOTED AT 09188 FRANC UP FROM 09127 FRANC MONDAY BUT DEALERS SAID THE FRANC ALSO FELL AGAINST THE DOLLAR AS INVESTORS BETTING ON A DOLLAR RALLY DURING THE NEXT FEW MONTHS LOOKED FOR A LESS COSTLY ALTERNATIVE TO SELL THAN THE MARK 9301130040 930113 PS NEW MEXICO TO SHED ASSETS IN MOVE TO CUT RATES FOR ITS DISGRUNTLED CLIENTS BY ANN DE ROUFFIGNAC STAFF REPORTER OF THE WALL STREET JOURNAL ALBUQUERQUE NM PUBLIC SERVICE CO OF NEW MEXICO GIVING IN TO CUSTOMER COMPLAINTS OF HIGH ELECTRIC BILLS SAID IT WOULD SHED ASSETS LAY OFF EMPLOYEES AND REPLACE TWO OF ITS MOST SENIOR EXECUTIVES IN A WIDERANGING ATTEMPT TO LOWER ELECTRICITY PRICES THE UTILITY SAID IT WILL TRY TO SELL SOME OF ITS HIGHPRICED EXCESS GENERATING CAPACITY SUCH AS ITS SHARE IN THE PALO VERDE NUCLEAR PLANT ALSO ON THE BLOCK ARE A WATER COMPANY IN SANTA FE AND PARTS OF A GAS GATHERING AND PROCESSING OPERATION IT ISN'T CLEAR HOW MUCH MONEY THE COMPANY COULD RAISE FROM THOSE SALES EVEN THE COMPANY ADMITS THE PALO VERDE SALE WILL BE VERY TOUGH TO TRY TO REDUCE ANNUAL COSTS BY 25 MILLION PS NEW MEXICO ALSO PLANS TO LAY OFF AN UNSPECIFIED NUMBER OF EMPLOYEES THIS YEAR AND HASN'T EXCLUDED TOP MANAGEMENT FROM THE CUTS THE COMPANY SAID IT HAS BEGUN A JOB SEARCH FOR A NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER REPLACING JOHN ACKERMAN WHO WILL REMAIN CHAIRMAN OF THE LONGTROUBLED UTILITY BILL EGLINTON THE COMPANY'S CURRENT CHIEF OPERATING OFFICER WILL RETIRE EFFECTIVE IN THE SPRING WE NEED A LOT OF HELP FROM EMPLOYEES CUSTOMERS AND POLICY MAKERS IF THIS COMPANY IS TO SUCCEED AND BECOME HEALTHY AGAIN SAID PAUL ROTH BOARD MEMBER AND CHAIR OF THE MANAGEMENT DEVELOPMENT AND COMPENSATION COMMITTEE IN A COMPANY RELEASE ALTHOUGH THE UTILITY HAS BEEN OPERATING IN THE BLACK SINCE 1989 DIVERSIFICATION EFFORTS IN THE LAST DECADE LEFT IT WITH HIGH COSTS TO SPREAD AMONG ITS CUSTOMERS AS A RESULT PS NEW MEXICO'S COST OF PROVIDING ELECTRICITY IS HIGHER THAN THOSE OF NEIGHBORING UTILITIES SAID DAN SCOTTO UTILITY BOND ANALYST WITH DONALDSON LUFKIN & JENRETTE CONSUMERS IN ALBUQUERQUE HAVE LONG GRIPED ABOUT THEIR ELECTRIC RATES WHICH ARE ON AVERAGE 52 HIGHER THAN NEARBY SOUTHWESTERN CITIES A YEAR AGO THE ALBUQUERQUE CITY COUNCIL REFUSED TO RENEW THE FRANCHISE AGREEMENT BETWEEN THE UTILITY AND THE CITY INSTEAD REQUIRING COMPETITIVE BIDS IN ORDER TO GRANT A FRANCHISE THE UTILITY WHICH STILL PROVIDES ELECTRICITY WITHOUT A FRANCHISE HAS REFUSED TO CONSIDER LETTING OTHER UTILITIES GAIN ACCESS TO THEIR LINES ELIMINATING ANY REALISTIC COMPETITIVE BIDDING PROCESS THE UTILITY EVEN TRIED TO GET THE LAW REQUIRING COMPETITIVE BIDDING REPEALED IN A REFERENDUM ON DEC 8 BUT VOTERS IN ALBUQUERQUE SOUNDLY OVERTURNED THE PROPOSITION NOW THE COMPANY IS BELATEDLY SUPPORTING RETAIL WHEELING WHERE CONSUMERS CAN SHOP AROUND FOR THE BEST RATES AND THEN HAVE THE POWER BROUGHT IN OVER EXISTING TRANSMISSION LINES COMPENSATING THE OWNER OF THE LINES A COMPANY SPOKESMAN SAID THE MOVES TO LOWER COSTS WILL ENABLE PS NEW MEXICO TO PUT IN PLACE A COMPETITIVE RATE STRUCTURE WE WANT TO GO ALONG WITH THE IDEA OF CHOICE WHICH THE CONSUMERS WANT HE SAID BUT THERE'S STILL A LOT OF ANIMOSITY OUT THERE LINGERING FROM THE COMPANY'S PAST HISTORY IF RETAIL WHEELING IS INSTITUTED AND STATE SEN TOM WRAY FROM ALBUQUERQUE PLANS TO INTRODUCE SUCH LEGISLATION THIS YEAR PS NEW MEXICO WOULD HAVE TO LOWER ITS RATES TO STAY COMPETITIVE THAT IN TURN WILL REQUIRE THE UTILITY TO SWALLOW BIG WRITEDOWNS ON ITS CURRENTLY OVERVALUED ASSETS ALTHOUGH NO ONE KNOWS HOW BIG A WRITEDOWN INDUSTRY ANALYSTS SAY BECAUSE OF THE POSSIBILITY OF RETAIL WHEELING MOODY'S INVESTORS SERVICE YESTERDAY PLACED THE RATINGS OF 16 BILLION OF PS NEW MEXICO BONDS AND PREFERRED STOCK UNDER REVIEW FOR POSSIBLE DOWNGRADE MOODY'S SAID IT WAS CONCERNED THAT THE UTILITY MIGHT LOSE CUSTOMERS TO LOWERCOST ELECTRICITY PRODUCERS BY CONTRAST STANDARD & POOR'S SAID IT WOULD NOT DOWNGRADE THE RATINGS UNLESS PS NEW MEXICO'S RESTRUCTURING EFFORTS BECOME TOO COSTLY 9301130039 930113 BUSINESS BRIEF PILGRIM'S PRIDE CORP POULTRY CONCERN POSTS LOSS FOR THE YEAR ENDED SEPT 26 PILGRIM'S PRIDE CORP PITTSBURG TEXAS POSTED A LOSS FOR FISCAL 1992 BUT SAID IT EXPECTED TO REPORT A PROFIT IN THE FIRST QUARTER ENDED JAN 2 IN THE YEAR ENDED SEPT 26 THE POULTRY PROCESSOR REPORTED A LOSS OF 297 MILLION OR 124 A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 123 MILLION OR 54 CENTS A SHARE IN A NEWS RELEASE LONNIE A PILGRIM CHAIRMAN AND CHIEF EXECUTIVE OFFICER BLAMED THE 1992 LOSS ON EXCESSIVE POULTRY PRODUCTION IN THE US AND MEXICO WHICH PULLED PRICES DOWN FOR MUCH OF THE YEAR HE BASED HIS EXPECTATIONS FOR A FIRSTQUARTER PROFIT ON IMPROVED POULTRY PRICES AND FAVORABLE PRODUCTION AND FEED COSTS HE ALSO SAID THAT HE EXPECTED A PROFIT FOR THE CURRENT FISCAL YEAR PILGRIM'S PRIDE ALSO ANNOUNCED THAT ITS LENDERS HAVE AGREED TO EXTEND THE MATURITIES ON 65 MILLION OF SHORTTERM DEBT AND HAVE WAIVED THE DEFAULTS THAT EXISTED UNDER THE LOAN AGREEMENTS THE COMPANY HAS HAD TROUBLE IN RECENT MONTHS COMPLETING THE REFINANCING PLAN AND IN NOVEMBER OMITTED ITS COMMON STOCK DIVIDEND FOR THE FIRST QUARTER 9301130038 930113 BUSINESS BRIEF REXON INC ELECTRONICS FIRM SAYS PROFIT PLUNGED IN ITS 1ST QUARTER REXON INC SIMI VALLEY CALIF SAID IT EXPECTS TO REPORT FISCAL FIRSTQUARTER NET INCOME OF ABOUT 400000 OR FOUR CENTS A SHARE AN 84 DROP FROM THE YEAREARLIER QUARTER REXON A MAKER OF COMPUTER TAPE DRIVE SYSTEMS AND RELATED PRODUCTS ALSO SAID IT EXPECTS TO POST A SALES RISE TO ABOUT 482 MILLION IN THE FIRST QUARTER ENDED DEC 29 1991 NET INCOME WAS 25 MILLION OR 31 CENTS A SHARE ON SALES OF 455 MILLION THE FORECAST RELEASED EARLY YESTERDAY SENT REXON SHARES DOWN 11 OR 1 TO 8 IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY SAID EARNINGS PLUNGED BECAUSE OF ITS DECISION TO SLASH PRICES ON ITS DIGITAL AUDIO TAPE PRODUCTS FOR COMPETITIVE REASONS AND A SHIFT IN ITS PRODUCT MIX THAT RESULTED IN MORE SALES OF ITEMS WITH LOWER PROFIT MARGINS 9301130037 930113 POLITICS & POLICY CONSERVATIVES FORM GROUP IN ATTEMPT TO CONSOLIDATE POWER SHARPEN MESSAGE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SOME OF THE REPUBLICAN PARTY'S MOST PROMINENT CONSERVATIVES JOINED FORCES TO SEIZE INTELLECTUAL LEADERSHIP OF THE CONSERVATIVE MOVEMENT IN THE WAKE OF THE REAGAN AND BUSH YEARS THEY FORMED A GROUP CALLED EMPOWER AMERICA WHICH WILL BE ONE OF THE MOST IMPORTANT VEHICLES FOR CONSERVATIVES TO SHARPEN THEIR MESSAGE AND CONSOLIDATE THEIR POWER WHILE IN POLITICAL EXILE THE ORGANIZATION IS TO BE DIRECTED BY OUTGOING HOUSING AND URBAN DEVELOPMENT SECRETARY JACK KEMP FORMER EDUCATION SECRETARY WILLIAM BENNETT AND FORMER UNITED NATIONS AMBASSADOR JEANE KIRKPATRICK FORMER MINNESOTA REP VIN WEBER WILL BE PRESIDENT THE GROUP WILL PUSH AN AGENDA THAT MR KEMP CHARACTERIZED AS POPULIST POLITICS AND PROGRESSIVE CONSERVATISM BUT ONE THAT ITS LEADERS HOPE WILL STAY AWAY FROM SUCH DIVISIVE ISSUES AS ABORTION AND GAY RIGHTS IN ANNOUNCING THE GROUP'S FORMATION THE LEADERS PLEDGED TO PUSH FOR AN INTERVENTIONIST FREETRADE FOREIGN POLICY AN ECONOMIC POLICY FOCUSED HEAVILY ON GROWTH RATHER THAN AUSTERITY AND A LIMITED GOVERNMENT ROLE IN SOLVING SOCIAL PROBLEMS THOUGH THE GROUP IS BILLED AS NONPARTISAN ITS LEADERSHIP INCLUDES SOME OF THE REPUBLICAN PARTY'S MOST PROMISING YOUNG FIGURES AND A PROBABLE FUTURE PRESIDENTIAL CONTENDER IN MR KEMP MOREOVER THE VERSION OF A CONSERVATIVE AGENDA THE NEW ORGANIZATION INTENDS TO PUSH WILL PUT IT IN THE MIDDLE OF AN EMERGING DEBATE OVER WHERE THE PARTY GOES DURING THE CLINTON YEARS ON ONE SIDE OF THE DEBATE IS ANOTHER NEW ORGANIZATION CALLED THE REPUBLICAN MAJORITY COALITION WHICH WAS CREATED RECENTLY BY MORE MODERATE REPUBLICANS THAT GROUP WANTS TO MOVE THE PARTY MORE TOWARD THE POLITICAL CENTER AND EXPRESSLY HOPES TO APPEAL TO VOTERS WHO FAVOR ABORTION RIGHTS ON THE OTHER SIDE ARE THE RESURGENT FORCES OF THE RELIGIOUS RIGHT AS WELL AS ARCHCONSERVATIVE LEADER PAT BUCHANAN WHO FAVORS A BRAND OF CONSERVATISM THAT TENDS MORE TOWARD ECONOMIC NATIONALISM AND AGGRESSIVE STANDS AGAINST ABORTION AND GAY RIGHTS IN ADDITION TO THE CONSERVATIVES WHO WILL LEAD IT EMPOWER AMERICA IS ATTEMPTING TO BROADEN ITS APPEAL BY BRANCHING OUT TO REPUBLICANS BEYOND THE WASHINGTON ESTABLISHMENT MOST NOTABLY ONE OF ITS ADVISERS WILL BE GOV BILL WELD OF MASSACHUSETTS A RISING STAR IN REPUBLICAN RANKS AND ANOTHER POTENTIAL PRESIDENTIAL CANDIDATE HE IS DECIDEDLY CONSERVATIVE ON ECONOMIC ISSUES BUT HAS BROKEN WITH SOME OTHER REPUBLICAN CONSERVATIVES ON SOCIAL ISSUES THREE OTHER GOVERNORS TOMMY THOMPSON OF WISCONSIN JOHN ENGLER OF MICHIGAN AND CARROLL CAMPBELL OF SOUTH CAROLINA PLUS FORMER NEW JERSEY GOV TOM KEAN HAVE SIGNED ON AS WELL THE GROUP MADE CLEAR IT HOPES TO APPEAL TO DEMOCRATS AND ROSS PEROT INDEPENDENTS IN ITS ATTEMPT TO RECAST CONSERVATISM ONE DEMOCRATIC SOCIAL COMMENTATOR MICHAEL NOVAK OF THE AMERICAN ENTERPRISE INSTITUTE ALSO WILL BE ASSOCIATED WITH THE ORGANIZATION AND ORSON SWINDLE WHO WAS SPOKESMAN FOR THE PEROT PRESIDENTIAL CAMPAIGN WILL BE AFFILIATED BECAUSE OF THIS ATTEMPT TO STRIKE A NONPARTISAN POSTURE THE GROUP AT THE OUTSET ISN'T PICKING FIGHTS WITH THE INCOMING CLINTON ADMINISTRATION ALTHOUGH MOST OF US FIND OUR HOME IN THE REPUBLICAN PARTY WE ARE LOOKING FOR COMMON GROUND WITH THE CLINTON ADMINISTRATION MR WEBER SAID BUT THE GROUP'S CONSERVATIVE AGENDA WILL LEAD IT TO CLASH WITH MR CLINTON WHO FAVORS A LARGER GOVERNMENT ROLE IN ECONOMIC AND SOCIAL POLICIES MR WEBER SAID THE EMPOWER AMERICA CONSERVATIVES BELIEVE IN A ROLE FOR GOVERNMENT IN HEALTH CARE EDUCATION AND THE MANY PROBLEMS AFFLICTING THE POOR BUT REJECT GOVERNMENT CENTRALIZATION BUREAUCRACY AND PATERNALISM AND THAT MEANS THE GROUP IS LIKELY TO BECOME A THORN IN MR CLINTON'S SIDE ON SUCH ISSUES AS HEALTH CARE MR BENNETT PLEDGED THAT THE CONSERVATIVE LEADERS WON'T SIMPLY COGITATE WE'RE GOING TO AGITATE 9301130036 930113 BUSINESS BRIEF AILEEN INC SAMESTORE SALES FALL 14 FIRSTPERIOD LOSS FORECAST AILEEN INC SAID SAMESTORE SALES IN DECEMBER WERE OFF 14 THE COMPANY ALSO SAID IT EXPECTS A WIDER LOSS IN THE FISCAL FIRST QUARTER THE NEW YORK MAKER AND RETAILER OF WOMEN'S APPAREL MADE THE LOSS PROJECTION IN VIEW OF CONTINUING NEGATIVE SAMESTORE SALES RESULTS AND THE FACT THAT THE FIRST QUARTER IS HISTORICALLY THE COMPANY'S WEAKEST RETAIL SELLING PERIOD THE QUARTER ENDS JAN 30 AILEEN EXPECTS TO REPORT THE QUARTERLY RESULTS IN EARLY MARCH IN THE YEAREARLIER QUARTER ENDED FEB 1 AILEEN HAD A LOSS OF 358000 OR SEVEN CENTS A SHARE ON SALES OF 125 MILLION SAMESTORE SALES IN DECEMBER INCLUDED 115 OF AILEEN'S 137 STORES OPEN AT THE END OF THE MONTH AILEEN CLOSED YESTERDAY AT 6125 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE TRADING 9301130035 930113 BUSINESS BRIEF FLUOR CORP UNIT GETS SEPARATE CONTRACTS TO BUILD PLANTS FOR 2 FIRMS FLUOR CORP AN IRVINE CALIF ENGINEERING AND CONSTRUCTION CONCERN SAID A UNIT RECEIVED TWO SEPARATE CONTRACTS TO BUILD A CHEMICAL PLANT IN WILMINGTON NC AND A POWER PLANT IN PINAMUCAN IN THE PHILIPPINE ISLANDS THE POWERPLANT CONTRACT VALUED AT 100 MILLION WAS RECEIVED FROM ENRON POWER CORP A SUBSIDIARY OF ENRON CORP HOUSTON THE VALUE OF THE SECOND CONTRACT RECEIVED FROM FORTRON INDUSTRIES WASN'T DISCLOSED FLUOR'S FLUOR DANIEL INC UNIT RECEIVED BOTH CONTRACTS BOTH PROJECTS ARE UNDER WAY AND COMPLETION IS EXPECTED THIS YEAR FLUOR SAID FORTRON INDUSTRIES IS A JOINT VENTURE OF KUREHA CHEMICAL INDUSTRY LTD OF JAPAN AND OF HOECHST CELANESE CORP A SUBSIDIARY OF HOECHST AG OF GERMANY 9301130034 930113 BUSINESS BRIEF ACETO CORP COMPANY TO TAKE A CHARGE OF 48 MILLION FOR QUARTER ACETO CORP SAID IT WOULD TAKE A 48 MILLION OR 94 CENTS A SHARE CHARGE FOR ITS FISCAL SECOND QUARTER RELATED TO THE CLOSING OF ITS ARSYNCO INC UNIT FOR THE YEAREARLIER SECOND QUARTER THE COMPANY HAD NET INCOME OF 14 MILLION OR 28 CENTS A SHARE ON SALES OF 378 MILLION THE PERSHARE FIGURE IS ADJUSTED FOR A 20 STOCK DIVIDEND LAST MONTH ACETO PROJECTED SECONDQUARTER EARNINGS WOULD IMPROVE FROM THE YEAREARLIER FIGURE THE LAKE SUCCESS NY IMPORTER AND MANUFACTURER OF SPECIALTY CHEMICALS IS EXPECTED TO ANNOUNCE ITS EARNINGS FOR THE QUARTER ENDED DEC 31 LATER THIS MONTH ARSYNCO'S 88 EMPLOYEES WON'T BE RETAINED ACETO SAID FURTHER WORK AT ARSYNCO A CHEMICAL AND PLASTICS MANUFACTURING OPERATION COULD SUBJECT THE COMPANY TO SUBSTANTIAL CAPITAL EXPENSE TO FULFILL ENVIRONMENTAL REQUIREMENTS 9301130033 930113 UNISYS GETS NAVY CONTRACT BLUE BELL PA UNISYS CORP SAID ITS PARAMAX SYSTEMS CORP UNIT RECEIVED A CONTRACT VALUED AT NEARLY 45 MILLION FROM THE NAVY STRATEGIC SYSTEMS PROGRAMS OFFICE PARAMAX BASED IN MCLEAN VA WILL PROVIDE VARIOUS SERVICES FOR THE FLEET BALLISTIC MISSILE PROGRAM INCLUDING ENGINEERING TECHNICAL ASSISTANCE FIELD ENGINEERING SERVICES LOGISTICS SUPPORT AND NAVIGATION TEST VEHICLE MANAGEMENT FOR THE POSEIDON/TRIDENT SUBMARINE NAVIGATION SYSTEMS THE CONTRACT RUNS FROM OCT 1 1992 THROUGH SEPT 30 1993 AND THE WORK WILL BE PERFORMED AT PARAMAX FACILITIES IN GREAT NECK NY RESTON VA AND VARIOUS SHIPYARDS AND GOVERNMENT LOCATIONS UNISYS IS AN INFORMATION SYSTEMS COMPANY 9301130032 930113 BUSINESS BRIEF CHESAPEAKE CORP ACCOUNTING CHANGES RESULT IN CHARGE AGAINST 1992 NET CHESAPEAKE CORP RICHMOND VA SAID IT WILL TAKE A CHARGE OF 97 MILLION OR 46 CENTS A SHARE AGAINST 1992 EARNINGS FROM ADOPTING TWO ACCOUNTING RULES THE PAPER PRODUCTS COMPANY ALSO SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF 34 MILLION OR 15 CENTS A SHARE FOR RESTRUCTURING COSTS AND COSTS ASSOCIATED WITH THE SALE OF ITS WOODTREATING BUSINESS ANDREW KOHUT CHESAPEAKE'S CHIEF FINANCIAL OFFICER DECLINED TO CHARACTERIZE FOURTHQUARTER RESULTS WITH THE CHARGE BUT NOTED ANALYSTS ESTIMATED THE COMPANY WOULD EARN 15 TO 20 CENTS A SHARE BEFORE THE CHARGE FOR THE YEAR CHESAPEAKE WILL TAKE A CATCHUP CHARGE OF 119 MILLION TO ACCRUE FOR THE COSTS OF FUTURE HEALTH BENEFITS FOR RETIREES AND CURRENT EMPLOYEES AFTER RETIREMENT IT ALSO WILL RECORD AN OFFSETTING CREDIT OF 22 MILLION FROM CHANGING THE METHOD OF ACCOUNTING FOR INCOME TAXES IN THE 1991 FOURTH QUARTER THE COMPANY EARNED 561264 OR 16 CENTS A SHARE FOR THE YEAR NET WAS 25 MILLION OR 73 CENTS A SHARE 9301130031 930113 BUSINESS BRIEF ADOBE SYSTEMS INC FOURTHPERIOD NET FELL 55 TO 84 MILLION AFTER CHARGE ADOBE SYSTEMS INC MOUNTAIN VIEW CALIF SAID PROFIT FELL 55 IN ITS FISCAL FOURTH QUARTER TO 84 MILLION OR 37 CENTS A SHARE AFTER A CHARGE EQUIVALENT TO 16 CENTS A SHARE THE EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS FOR THE DESKTOP PUBLISHING SOFTWARE MAKER THE CHARGE WAS RELATED TO ADOBE'S DECISION TO END ITS PARTICIPATION IN AN URBAN REDEVELOPMENT PROJECT IN EAST PALO ALTO CALIF REVENUE FOR THE QUARTER WHICH ENDED NOV 27 ROSE 13 TO 707 MILLION FROM 627 MILLION A YEAR EARLIER ADOBE EARNED 131 MILLION OR 57 CENTS A SHARE FOR THE FULL YEAR ADOBE POSTED NET OF 436 MILLION OR 187 A SHARE ON REVENUE OF 2659 MILLION IN THE PRIOR FISCAL YEAR IT EARNED 516 MILLION OR 225 A SHARE ON REVENUE OF 2297 MILLION BRUCE LUPATKIN ANALYST FOR HAMBRECHT & QUIST SAID THE COMPANY SEEMS TO HAVE TURNED THE CORNER HE PROJECTS EARNINGS FOR FISCAL YEAR 1993 OF 305 A SHARE 9301130030 930113 ABREAST OF THE MARKET STOCKS RECOVER IN LAST HALFHOUR AS INDUSTRIALS END UP 189 POINTS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES RECOVERED FROM A BOUT OF AFTERNOON SELLING TO CLOSE MODERATELY HIGHER THE SLIM GAINS CAME EVEN AS INVESTORS HAMMERED TRANSPORTATION STOCKS DRIVING SUCH ISSUES AS UAL AND AMR LOWER I THINK THE MARKET GETS A BPLUS FOR TRYING TO HANG IN THERE SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT COUNTY NATWEST YOU HAD ANOTHER DISAPPOINTING DAY IN THE BOND MARKET AND DESPITE ALL THAT THE S&P IS KIND OF FLAT AND THE DOW IS UP A TICK HEAVY SELLING OF TRANSPORTATION STOCKS AND SOME TECHNOLOGY ISSUES KNOCKED THE INDUSTRIAL AVERAGE MORE THAN 20 POINTS LOWER IN THE AFTERNOON BUT THE MARKET MADE UP LOST GROUND WITH A RALLY IN THE CLOSING HALFHOUR ADVANCERS EDGED OUT DECLINERS 890888 BIG BOARD VOLUME SWELLED TO 239250000 SHARES FROM 217150000 MONDAY JOHN PELUSO MANAGING DIRECTOR IN CHARGE OF BLOCK TRADING AT SHEARSON LEHMAN BROTHERS SAID THE PACE OF ROTATION AMONG VARIOUS STOCK GROUPS IS SLOWING IN RECENT WEEKS INVESTORS HAVE BEEN AGGRESSIVELY SWAPPING OUT OF SOCALLED GROWTH STOCKS SUCH AS FOOD DRUGS AND BEVERAGES AND INTO MORE ECONOMICALLY SENSITIVE ISSUES AMONG THEM TECHNOLOGY AUTO AND HOMEBUILDING STOCKS EDWARD LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY & CO SAID TECHNOLOGY HAS BEEN THE LEADING SECTOR IN THE MARKET RECENTLY BUT YESTERDAY THE SECTOR WAS HIT BY HEAVY SELLING TECHNOLOGY STOCKS HAVE BEEN CLEARCUT WINNERS SO FAR AND THEY PROBABLY GOT TO SOME FROTHY LEVELS AND WERE DUE FOR SOME PROFITTAKING MR LAUX SAID TEXAS INSTRUMENTS LOST 2 1/8 TO 54 1/2 AND MOTOROLA DROPPED 1 3/8 TO 111 3/8 HE SAID INVESTORS WOULD BE MORE COMFORTABLE WITH WIDER LEADERSHIP AMONG CYCLICAL STOCKS I THINK SOME PEOPLE WOULD LIKE TO SEE BROADERBASED LEADERSHIP OUT OF THE CYCLICALS TO BE CONVINCED THAT THE MARKET IS GOING TO DO A LOT BETTER HE SAID BUT BEFORE INVESTORS WILL MAKE BIGGER BETS ON CYCLICAL STOCKS MR LAUX SAID THEY MAY NEED MORE SIGNS OF ECONOMIC GROWTH AND POSITIVE EARNINGS NEWS TRANSPORTATION STOCKS WERE BEATEN UP YESTERDAY TOO AFTER A ROBUST RUN IN RECENT WEEKS UAL FELL 2 3/8 TO 129 1/2 AMR LOST 1 5/8 TO 67 3/4 AND CSX SLIPPED 1/8 TO 72 5/8 EASTMAN KODAK TOPPED THE MOST ACTIVE LIST RISING 2 5/8 TO 47 5/8 ON SEVEN MILLION SHARES THE STOCK OF THE ROCHESTER NY PHOTOGRAPHIC GIANT WAS THE SECOND MOST ACTIVE ISSUE ON THE BIG BOARD MONDAY WHEN IT JUMPED 3 1/4 ON NEWS THAT THE COMPANY HAD RECRUITED HONEYWELL TURNAROUND ARTIST CHRISTOPHER J STEFFEN TO BE ITS CHIEF FINANCIAL OFFICER CHRYSLER SLID 1 5/8 TO 34 5/8 THE DETROITBASED AUTO MAKER DISCLOSED LATE MONDAY THAT IT WILL SELL 40 MILLION NEW COMMON SHARES WHICH WOULD RAISE ABOUT 146 BILLION TO BOLSTER ITS BALANCE SHEET INVESTORS HAMMERED DAMON DRIVING THE STOCK DOWN 5 3/4 TO 14 1/8 LATE MONDAY THE COMPANY SAID IT EXPECTS TO REPORT FOURTHQUARTER NET INCOME OF 16 MILLION TO 24 MILLION OR 10 CENTS TO 15 CENTS A SHARE THAT WAS FAR SHORT OF ANALYSTS' EXPECTATIONS ACCORDING TO ZACKS INVESTMENT RESEARCH THE CONSENSUS ESTIMATE AMONG ANALYSTS WAS 26 CENTS A SHARE AILEEN SLIPPED 3/4 TO 6 1/8 THE COMPANY WHICH OPERATES A CHAIN OF WOMEN'S CLOTHING STORES SAID IT EXPECTS ITS LOSS FOR THE FIRST QUARTER OF FISCAL 1993 TO EXCEED ITS LOSS OF 358000 OR SEVEN CENTS A SHARE A YEAR EARLIER TEREX GAINED 5/8 TO 10 THE COMPANY SAID IT RECEIVED A NUMBER OF UNSOLICITED INQUIRIES FROM QUALIFIED PARTIES EXPRESSING INTEREST IN PURCHASING FRUEHAUF TRAILER'S BUSINESS TEREX AND ITS AFFILIATES CONTROL MORE THAN 50 OF FRUEHAUF AS A RESULT OF THE INTEREST TEREX SAID IT RETAINED PAINEWEBBER AS FINANCIAL ADVISER TO EXPLORE OPPORTUNITIES FOR MAXIMIZING FRUEHAUF'S SHAREHOLDER VALUE FRUEHAUF ALSO ROSE ADVANCING 1/2 TO 4 3/4 UNO RESTAURANT SLUMPED 1 1/4 TO 6 3/8 THE COMPANY SAID MERGER TALKS WITH MORRISON RESTAURANTS WERE TERMINATED THE TWO COMPANIES AGREED IN A LETTER OF INTENT LAST MONTH THAT MORRISON WOULD EXCHANGE ONE OF ITS SHARES FOR EVERY 25 UNO SHARES AMERICAN TELEPHONE & TELEGRAPH EDGED UP 1/8 TO 51 5/8 INVESTORS SHRUGGED OFF NEWS THAT THE TELEPHONE CONCERN'S FOURTHQUARTER EARNINGS WILL BE REDUCED BY ABOUT THREE CENTS A SHARE BECAUSE OF A DECLINE IN THE VALUE OF ITS INVESTMENT IN INDUSTRIALI RIUNITE AN ITALIAN HOLDING COMPANY BCE GAINED 1 1/8 TO 33 1/4 BEAR STEARNS & CO ANALYST KENNETH LEON INITIATED COVERAGE OF THE CANADIAN TELECOMMUNICATIONS COMPANY WITH A BUY RECOMMENDATION MR LEON SEES DIVIDEND GROWTH IN THE 3 TO 5 RANGE FOR THE NEXT FIVE YEARS AND ESTIMATES THE COMPANY WILL REPORT EARNINGS OF 278 A SHARE FOR 1992 AND 294 FOR 1993 FREEPORTMCMORAN RESOURCES DROPPED 7/8 TO 19 1/8 AFTER TWO WALL STREET ANALYSTS DIMMED THEIR INVESTMENT OUTLOOK FOR THE COMPANY LEHMAN BROTHERS LOWERED ITS RATING TO NEUTRAL FROM OUTPERFORM AND OPPENHEIMER & CO CUT ITS RATING TO MARKET PERFORMER FROM BUY THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX FELL 083 TO 39641 VOLUME WAS 15529000 UP FROM MONDAY'S 13572000 THERE WERE 282 DECLINERS AND 244 ADVANCERS 9301130029 930113 BUSINESS BRIEF STUDENT LOAN MARKETING ASSOCIATION FOURTHPERIOD NET ROSE 11 ON IMPROVED RATE SPREADS THE STUDENT LOAN MARKETING ASSOCIATION SAID FOURTHQUARTER NET INCOME ROSE 11 AIDED BY IMPROVED INTERESTRATE SPREADS WASHINGTONBASED SALLIE MAE SAID NET ROSE TO 1012 MILLION OR 110 A SHARE FROM 911 MILLION OR 95 CENTS A SHARE A YEAR EARLIER FOR THE YEAR NET INCOME ROSE 14 TO 3939 MILLION OR 421 A SHARE FROM 3451 MILLION OR 355 A SHARE A YEAR EARLIER TOTAL ASSETS WERE 466 BILLION COMPARED WITH 453 BILLION AT THE END OF 1991 LAWRENCE A HOUGH PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE GOVERNMENTSPONSORED STUDENTLOAN CONCERN BENEFITED FROM IMPROVED INTERESTRATE SPREADS AS IT TOOK ADVANTAGE OF GOOD FUNDING OPPORTUNITIES AND MAINTAINED FAVORABLE YIELDS ON NEW LOAN PURCHASES AND OTHER ASSETS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SALLIE MAE STOCK WAS QUOTED AT 68 UP 25 CENTS 9301130028 930113 NIKE AND KENYA SET ACCORD BEAVERTON ORE NIKE INC SAID IT ENTERED INTO AN AGREEMENT WITH KENYAN ATHLETIC OFFICIALS THAT MAKES NIKE THE OFFICIAL CLOTHIER FOR KENYA'S NATIONAL TRACK AND FIELD CROSS COUNTRY AND ROAD RACING TEAM TERMS WEREN'T DISCLOSED THE AGREEMENT CALLS FOR NIKE TO PROVIDE UNIFORMS AND OTHER APPAREL FOR THE ATHLETES 9301130027 930113 MARKETING & MEDIA TIMES MIRROR NAMES SWEENEY LOS ANGELES JUDITH L SWEENEY WAS NAMED PRESIDENT OF THE ORANGE COUNTY EDITION OF THE LOS ANGELES TIMES AND A VICE PRESIDENT OF THE NEWSPAPER MS SWEENEY 36 YEARS OLD HAD BEEN A CONSULTANT WITH THE MANAGEMENT CONSULTING FIRM MCKINSEY & CO SINCE 1986 SHE HAD WORKED WITH THE ORANGE COUNTY EDITION FOR THE PAST FOUR YEARS SHE SUCCEEDS LAWRENCE M HIGBY 47 WHO WAS PROMOTED TO CHAIRMAN OF THE EDITION A NEW POST HE WAS RECENTLY NAMED EXECUTIVE VICE PRESIDENT OF MARKETING AT THE TIMES THE FLAGSHIP NEWSPAPER OF TIMES MIRROR CO MS SWEENEY WILL MAKE THE DAYTODAY MARKETING DECISIONS FOR THE EDITION AND REPORT TO MR HIGBY WHO WILL RETAIN RESPONSIBILITY FOR THE EDITION'S LONGTERM MARKETING DIRECTION 9301130026 930113 MOODY'S MULLS A DOWNGRADING OF KMART DEBT RECENT LACKLUSTER RESULTS IN SPITE OF RENOVATIONS OF STORES MENTIONED BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MOODY'S INVESTORS SERVICE INC PLACED 4 BILLION OF KMART CORP DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE VOICING CONCERNS ABOUT THE COMPANY'S RECENT LACKLUSTER RESULTS AMID A COSTLY STORERENOVATION PROGRAM SINCE 1989 THE NATION'S SECONDLARGEST DISCOUNT RETAILER HAS BEEN UPDATING AND EXPANDING ITS STORES ADDING WIDER AISLES AND MORE LINES OF HIGHERQUALITY MERCHANDISE IT PLANS TO SPEND A HEFTY 3 BILLION OVER FIVE YEARS ON THE PROJECT TO BETTER COMPETE WITH INDUSTRY LEADER WALMART STORES INC AND WOO MORE SHOPPERS CHAIRMAN JOSEPH E ANTONINI REPEATEDLY HAS BOASTED THAT CONSUMERS HAVE REACTED FAVORABLY TO THE UPGRADING AND ANALYSTS HAVE PRAISED THE MUCHIMPROVED LOOK SO FAR KMART HAS RENOVATED ABOUT HALF OF ITS 2278 STORES HOWEVER KMART RECENTLY HASN'T RECORDED THE SALES OR EARNINGS GAINS THAT COMPETITORS HAVE REGISTERED AS CONSUMER CONFIDENCE AND SPENDING HAVE IMPROVED THE TROY MICH COMPANY HAS POSTED SEVERAL MONTHS OF SMALLERTHANEXPECTED SAMESTORE SALES GAINS FALLING BEHIND SUCH COMPETITORS AS WALMART JC PENNEY CO AND SEARS ROEBUCK & CO LAST MONTH FOR EXAMPLE ITS SALES IN STORES OPEN AT LEAST A YEAR ROSE ONLY 24 WHILE MOST OF ITS COMPETITORS POSTED GAINS OF 5 TO 10 MOODY'S SAID IT'S CONCERNED THAT KMART IS NOT GENERATING THE RETURNS THE RATING SERVICE HAS BEEN EXPECTING BUT IT WASN'T MORE SPECIFIC IT QUESTIONED WHETHER KMART'S DEBTPROTECTION MEASUREMENTS DURING THE NEXT FEW YEARS WILL BE LESS THAN EXPECTED MR ANTONINI HAS BLAMED KMART'S SLUGGISH PERFORMANCE ON THE UNFAVORABLE ECONOMIES IN ITS LARGE MICHIGAN AND CALIFORNIA MARKETS AS WELL AS THE COMPANY'S STRATEGY OF WIDENING MARGINS BY OFFERING FEWER HOLIDAY PROMOTIONS ALSO SOME INDUSTRY EXPERTS QUESTION WHETHER CONSUMERS HAVE YET TO SEE KMART AS A FASHIONABLE PLACE TO BUY SAY CLOTHES FOR THE WORKPLACE DESPITE ITS WELLRECEIVED TELEVISION ADS THAT PORTRAY WORKING WOMEN IN KMART CLOTHES MOST WOMEN STILL WOULD RATHER REVEAL THEIR AGE THAN DISCLOSE THEY BOUGHT THEIR CLOTHES AT KMART SAID ALAN MILLSTEIN EDITOR OF THE NEW YORKBASED NEWSLETTER FASHION NETWORK REPORT THIS CHRISTMAS THEY USED THEIR CREDIT CARDS AT DEPARTMENT STORES NOT AT KMART ADDITIONALLY ANALYSTS ARE CONCERNED ABOUT MR ANTONINI'S RECENT DECISION TO SLOW RENOVATION PLANS TO 200 STORES IN 1993 FROM THE COMPANY'S ORIGINAL PLAN OF 450 A YEAR UNTIL 1995 INSTEAD THE COMPANY WANTS TO TEST ABOUT 15 OF ITS NEW SUPER KMART STORES WHICH FEATURE THE RETAILER'S GENERAL MERCHANDISE IN ADDITION TO GROCERY ITEMS IT CURRENTLY HAS OPENED FOUR SUCH STORES IF THOSE STORES ARE SUCCESSFUL THE COMPANY MAY INSTALL THEM AT SITES IT PREVIOUSLY PLANNED TO RENOVATE MOODY'S NOTED THAT THE STORERENEWAL SLOWDOWN WASN'T A CRITICAL FACTOR IN ITS DECISION TO REVIEW KMART'S DEBT RATINGS MOODY'S SAID ITS REVIEW WILL FOCUS ON KMART'S ABILITY TO IMPROVE ITS FINANCIAL PERFORMANCE IT ALSO WILL CONSIDER ANY PROGRESS BEING MADE TO ENHANCE RETURNS AT THE COMPANY'S SPECIALTY RETAILING OPERATIONS INCLUDING ITS WALDENBOOKS AND PAY LESS DRUG STORE OPERATIONS A KMART SPOKESWOMAN DECLINED TO ADDRESS SPECIFICALLY MOODY'S CONCERNS SHE SAID KMART PLANS TO MEET WITH MOODY'S IN EARLY FEBRUARY TO GIVE THEM ADDITIONAL INFORMATION IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY KMART SHARES WERE QUOTED AT 2275 UP 375 CENTS THE MOODY'S REVIEW OF KMART'S DEBT INCLUDES THE FOLLOWING RATINGS SENIOR UNSECURED DEBT AND MEDIUMTERM NOTES AT SINGLEA1 INDUSTRIAL DEVELOPMENT BONDS AT SINGLEA1 AND SINGLEA2 LEASE CERTIFICATES AT SINGLEA2 AND PREFERRED STOCK AT A2 IT'S ALSO LOOKING AT THE SINGLEA2 RATING OF THE SUBORDINATED DEBT OF THE COMPANY'S PACE MEMBERSHIP WAREHOUSE INC UNIT 9301130025 930113 FUTURE FACTORIES SMALL FLEXIBLE PLANTS MAY PLAY CRUCIAL ROLE IN US MANUFACTURING CARRIER FACILITY IN ARKANSAS PICKS WORKERS CAREFULLY GIVES THEM AUTONOMY ORDERING THEIR OWN SUPPLIES BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL ARKADELPHIA ARK ON A POTHOLEFILLED ROAD ACROSS FROM A BIG CHICKEN PROCESSOR IN THIS REMOTE TOWN SITS A CARRIER CORP PLANT THAT COULD BE A BLUEPRINT FOR THE FUTURE OF US MANUFACTURING THE PLANT LOOKS MORE LIKE AN INSURANCE OFFICE THAN A FACTORY WITH ITS SLEEK ONESTORY STRUCTURE PERVASIVE AUTOMATION AND LEAN WORK FORCE OF ONLY 150 ON THE FACTORY FLOOR YOU COULD HEAR A WHISPER AND IT'S SPOTLESS PROBABLY CLEANER THAN MOST OF OUR HOUSES SAYS FRED COBB A WORKER BUT JUST AS HENRY FORD CHANGED THE US ECONOMY WITH MASS PRODUCTION NEARLY A CENTURY AGO THIS PLANT AND SCORES OF SMALL ONES LIKE IT MANY OF THEM IN ISOLATED TOWNS ARE KEEPING US MANUFACTURING HEALTHY THE CARRIER PLANT WHICH PRODUCES COMPRESSORS FOR AIR CONDITIONERS OPERATES IN SOME UNUSUAL WAYS FOR EXAMPLE IT MAINTAINS NO FINISHEDGOODS INVENTORY BECAUSE IT MAKES THE COMPRESSORS ONLY TO ORDER THIS IS RETHINKING THE MANUFACTURING PROCESS SAYS DAVID GARVIN A HARVARD BUSINESS SCHOOL PROFESSOR WHAT MOST DISTINGUISHES THIS PLANT HOWEVER ARE ITS WORKERS A BREED APART FROM YESTERDAY'S LUNCHPAIL CROWD JOB APPLICANTS MUST COMPLETE A GRUELING SIXWEEK COURSE A SELECTION PROCESS THAT RESULTS IN A JOB FOR ONLY ONE OF EVERY 16 APPLICANTS AND YIELDS A TOPQUALITY WORK FORCE ONCE ON THE JOB THE WORKERS HAVE UNUSUAL AUTHORITY THEY CAN FOR EXAMPLE SHUT DOWN PRODUCTION IF THEY SPOT A PROBLEM AND WITHIN LIMITS THEY CAN ORDER THEIR OWN SUPPLIES WORKERS WHO ARE NONUNION AND EARN 16000 TO 17000 A YEAR EXCLUDING FRINGE BENEFITS DON'T HAVE TO PUNCH A TIME CLOCK OR PROVE ILLNESS SHOWN A DOCTOR'S EXCUSE FOR AN ABSENCE TRACY BARTELS A SUPERVISOR SAID I DON'T NEED THAT THE SURPRISED EMPLOYEE BLURTED OUT REALLY EVEN A LOT OF SUCH PLANTS CAN'T MAKE UP FOR THE HEAVYINDUSTRY JOBS BEING WIPED OUT BY CORPORATE GIANTS SUCH AS GENERAL MOTORS CORP WHICH IS CLOSING 22 LARGE PLANTS THE US LOST A MILLION MANUFACTURING JOBS FROM 1989 TO 1991 AND THE BUREAU OF LABOR STATISTICS EXPECTS NO NET ADDITIONS BEFORE THE END OF THE CENTURY TO THE CURRENT TOTAL OF ABOUT 18 MILLION YET US MANUFACTURERS AREN'T CEDING EVERYTHING TO FOREIGN COMPETITORS INSTEAD THEY'RE QUIETLY OPENING SMALL PLANTS THAT REQUIRE SMALL EDUCATED WORK FORCES EATON CORP A CLEVELANDBASED AUTOPARTS MAKER STARTED UP A 120EMPLOYEE PLANT IN HAMILTON IND IN SEPTEMBER INTEL CORP IS CONSTRUCTING A COMPUTERCHIP FACTORY IN SANTA CLARA CALIF EVENTUALLY CREATING 250 JOBS MILES INC HAS ANNOUNCED PLANS TO BUILD A 140 MILLION FACILITY IN BERKELEY COUNTY SC WHERE 150 PEOPLE WILL MAKE SYNTHETIC FIBERS MA HANNA CO OF CLEVELAND IS BUILDING A 60EMPLOYEE PLANT TO MAKE COLOR CONCENTRATES FOR PLASTICS IN PHOENIX NEAR A BIG CUSTOMER AND STAFFORD RAILSTEEL CORP OF CHARLOTTE NC PLANS A MINIMILL THAT WILL BE THE FIRST NEW US FACILITY FOR MAKING RAIL STEEL SINCE EARLY THIS CENTURY BY THEIR VERY NATURE SMALL PLANTS ARE RESPONSIVE ABLE TO SHIFT FROM ONE PRODUCT TO ANOTHER OR CHANGE PRODUCTION SCHEDULES QUICKLY THEY REQUIRE LESS MOVEMENT OF MATERIALS MANAGING THEM IS EASIER BECAUSE THEY HAVE FEW LAYERS OF EMPLOYEES AND WORKER IDEAS CAN RISE TO THE TOP FASTER AND THEY GET BETTER WORKERS BECAUSE THEIR SIZE ENABLES THEM TO BE MORE SELECTIVE SUCH PLANTS TEND TO LOCATE IN RURAL AREAS WHICH BEING SMALL DIDN'T LAND THE GIANT FACTORIES OF YESTERDAY THEY CAN GET BETTEREDUCATED BETTERMOTIVATED WORKERS THAN THEY CAN IN THE URBAN COMMUNITIES SAYS MICHAEL CANTWELL NATIONAL DIRECTOR FOR MANUFACTURING FOR GRANT THORNTON AN ACCOUNTING AND CONSULTING FIRM MOREOVER HE ADDS THESE TEND TO BE THE PEOPLE WHO DON'T LIKE UNIONS CARRIER HAD NO CHOICE BUT TO BUILD A NEW FACTORY TO BE COMPETITIVE THE UNITED TECHNOLOGIES CORP UNIT HAD TO MAKE ITS OWN COMPRESSORS BUT THE BIG PLANTS IT BUILT IN THE 1970S AND 1980S WITH THEIR HIGH FIXED COSTS AND INFLEXIBLE PRODUCTION LINES PROVED TO BE MONEYLOSERS AND THE COMPANY BEGAN CLOSING THEM SO THOMAS L KASSOUF PRESIDENT OF THE COMPRESSOR DIVISION ENVISIONED A STREAMLINED PLANT THAT EVEN RUNNING AT CAPACITY WOULD EMPLOY NO MORE THAN 400 WORKERS CARRIER DREW A CIRCLE AROUND ITS TEXAS AND TENNESSEE PLANTS THAT WOULD USE THE COMPRESSORS AND CHOSE ARKADELPHIA AS A POSSIBLE SITE THE TOWN WHICH HAS A POPULATION OF 10014 WAS EAGER 1700 PEOPLE LOST JOBS THERE WHEN THREE PLANTS CLOSED IN 1986 AND 1987 UNEMPLOYMENT SOARED TO 15 OF THE WORK FORCE FROM 5 PEOPLE WERE LEAVING DETERMINED TO WOO CARRIER COUNTY VOTERS APPROVED A 1 SALES TAX TO EXTEND A SEWER LINE TO THE LOCAL INDUSTRIAL PARK THE STATE GOVERNMENT PROMISED HUNDREDS OF THOUSANDS OF DOLLARS IN TAX BREAKS AND TRAINING COSTS IN EARLY 1989 CARRIER PLEDGED 100 MILLION TO THE PROJECT AND THE PLANT OPENED LAST OCT 13 IT'S LIKE NO OTHER PLANT IN ARKADELPHIA TILES THAT SOAK UP SOUND AND REFLECT LIGHT COVER MUCH OF THE CEILING THE GRAY FLOORS GLEAM IN A DIRTY PLANT YOU GET A DON'TGIVEADARN ATTITUDE RIGHT AWAY SAYS A WORKER CHUCK PENNINGTON WOMEN WORK BESIDE MEN IN EVERY AREA AND CAN HANDLE EVERY JOB CARRIER DESIGNED THE PLANT SO THAT NO ONE HAS TO LIFT ANYTHING HEAVIER THAN 12 POUNDS REPEATEDLY WHY SHOULD THERE BE ANY BARRIERS IN OUR PLANT MR KASSOUF ASKS THE PLANT IS HIGHLY AUTOMATED IN ONE WORK UNIT A PERSON PLACES TWO PIECES OF METAL IN A CUTTING MACHINE SHUTS THE GLASS DOORS AND PUNCHES A BUTTON GUIDED BY A COMPUTER THAT KEEPS THE CUT FROM STRAYING MORE THAN EIGHT MILLIONTHS OF AN INCH THE MACHINE SLICES STEEL LIKE BUTTER CARRIER MAKES ONE PART OF THE COMPRESSOR THE PART REQUIRING THE MOST COMPLEX MACHINING IN JUST OVER A MINUTE AS A RESULT THE COMPANY EXPECTS TO PRODUCE EACH COMPRESSOR FOR 35 LESS THAN IT NOW PAYS TO BUY THEM FROM SUPPLIERS FOR A SAVING THAT COULD RUN 263 MILLION A YEAR WHEN ANNUAL PRODUCTION HITS 750000 FLEXIBILITY IS CRUCIAL BOTH AMONG WORKERS AND IN THE DESIGN OF THE PLANT CARRIER TEACHES WORKERS SEVERAL JOBS SO THAT IF ONE IS SICK ANOTHER CAN FILL IN QUICKLY IN ADDITION THE WHOLE PLANT COULD PROBABLY BE RECONFIGURED IN SEVERAL WEEKS' TIME MR KASSOUF SAYS THE FIRST WORKERS HIRED SUGGESTED THAT THEY THEMSELVES INSTALL THE MACHINES MANAGEMENT AGREED AND SEVERAL WORKERS JETTED OFF TO MACHINETOOL PLANTS SOME FLYING FOR THE FIRST TIME WHERE THEY LEARNED HOW TO ASSEMBLE THE EQUIPMENT THAT EXPERIENCE INSTILLED A SENSE OF OWNERSHIP MANY TALK ABOUT MY MACHINE IT ALSO SAVED 1 MILLION OF INSTALLATION COSTS AND BECAUSE OF THEIR RESULTING FAMILIARITY WITH THE EQUIPMENT EMPLOYEES DON'T HAVE TO WAIT FOR MAINTENANCE WORKERS TO FIX A MACHINE THAT BREAKS DOWN WHEN WORKERS RECENTLY REALIZED THAT THEIR MACHINES WERE ARRANGED IN A CUMBERSOME WAY AND THAT COMPRESSORS WERE SKIPPING A WELDING MACHINE ONLY TO HAVE TO DOUBLE BACK TO IT LATER THEY PULLED UP SEVEN MACHINES AND REALIGNED THEM THEY CAME UP WITH THE IDEA ONE MORNING AND BEGAN IMPLEMENTING IT THAT AFTERNOON AFTER CLEARING IT ONLY WITH THEIR IMMEDIATE SUPERVISOR AS A RESULT THEY COMPLETED THE JOB IN JUST FOUR DAYS IN A TRADITIONALLY ORGANIZED PLANT BY CONTRAST THE NEED TO CONSULT AN ARRAY OF MANAGERS AND WAIT FOR A MAINTENANCE CREW TO DO THE WORK WOULD HAVE DRAGGED OUT THE PROJECT FOR WEEKS EVEN DURING NORMAL OPERATIONS SAYS MARK WELLS AN ASSEMBLYLINE EMPLOYEE WORKERS IN TEAMS QUICKLY LEARN WHO HAS WHICH SKILLS AND TAKE DIRECTIONS FROM THE MOST KNOWLEDGEABLE GETTING A JOB AT THIS CARRIER PLANT IS A BIT LIKE APPLYING TO COLLEGE IT STARTS WITH A STANDARD STATE TEST FOR JOB APPLICANTS WHO MUST BE HIGHSCHOOL GRADUATES OR HAVE A GENERAL EDUCATION DIPLOMA ONLY THOSE SCORING IN THE TOP THIRD ADVANCE THEIR REFERENCES ARE CHECKED CLOSELY WITH CARRIER MANAGERS ZEROING IN ON HOW WELL APPLICANTS WORK WITH OTHER PEOPLE THE APPLICANTS ARE INTERVIEWED BY MANAGERS AND EVEN ASSEMBLYLINE WORKERS AND WHAT THE WORKERS THINK STRONGLY INFLUENCES WHO GETS HIRED WORKERS EVEN SOMETIMES INTERVIEW PROSPECTIVE BOSSES IN ONE CASE A MANAGER AT ANOTHER CARRIER PLANT RECOMMENDED A YOUNG MAN ONE OF HIS SUBORDINATES FOR AN ENGINEERING SPOT THE WORKERS WHO INTERVIEWED HIM TOLD WILLIAM HARMISON PRODUCTION AND MATERIALS MANAGER AT ARKADELPHIA THAT THE CHEMISTRY JUST WASN'T RIGHT THE MAN DIDN'T GET THE JOB WORKERS GET INVOLVED IN THE HIRING PROCESS IN INFORMAL WAYS TOO CLYDE BRIGGS THE HUMANRESOURCES MANAGER RECALLS ASKING AN EMPLOYEE ABOUT AN APPLICANT HE HAD WORKED WITH BEFORE I DON'T THINK YOU GUYS WANT TO HIRE HIM THE EMPLOYEE SAID THE QUESTION IS BRIGGS RESPONDED DO YOU WANT TO HIRE HIM THE ANSWER WAS NO AND THE APPLICANT WAS REJECTED THOSE WHO ADVANCE PAST THE INTERVIEWS TAKE A SIXWEEK COURSE FOR FIVE NIGHTS A WEEK FOR THREE HOURS WITH A COUPLE OF SATURDAYS THROWN IN APPLICANTS LEARN BLUEPRINT READING MATH SUCH AS FRACTIONS AND METRIC CALCULATIONS STATISTICAL PROCESSCONTROL METHODS SOME COMPUTER SKILLS AND SOLVING THE PROBLEMS INVOLVED IN DEALING WITH FELLOW WORKERS WHILE TAKING THE COURSE THE APPLICANTS MOST OF WHOM HAVE OTHER JOBS STILL HAVEN'T BEEN HIRED BY CARRIER HAVEN'T ANY ASSURANCE THAT THEY WILL BE AND DON'T GET PAID MEANWHILE THE INSTRUCTORS WATCH HOW WELL APPLICANTS WORK WITH EACH OTHER THE APPLICANTS EVEN JUDGE ONE ANOTHER INEVITABLY A FEW FALL BY THE WAYSIDE ONE WAS A WOMAN WHO REFUSED TO WORK WITH OTHERS WHEN THE INSTRUCTOR WASN'T NEARBY BUT GETTING THROUGH THE TRAINING SESSIONS VIRTUALLY GUARANTEES NOT ONLY A JOB BUT A SAY IN HOW THE PLANT OPERATES WHEN GENE WHITAKER A 24YEAROLD ASSEMBLY WORKER NOTICED THE PAINT WASN'T ADHERING WELL TO THE COMPRESSORS HE DECIDED THE PRETREATMENT PROCESS NEEDED SODIUM ASH TO MAKE THE PAINT STICK BETTER SO HE PICKED UP A PHONE AND PLACED A 5000 ORDER WITH A SUPPLIER I'VE NEVER BEEN STOPPED WHEN ORDERING SUPPLIES HE SAYS WHEN ONE EMPLOYEE TOLD MS BARTELS HE NEEDED NEW GLOVES THE SUPERVISOR HANDED HIM A CATALOG ISN'T IT SOMEBODY'S JOB TO DO THAT HE ASKED SHE EXPLAINS LATER THEY'RE THE ONES WHO ARE GOING TO USE IT THEY MIGHT AS WELL DECIDE WHAT THEY'RE GOING TO USE WITHIN VARIOUS DEPARTMENTS HOWEVER WORKERS ARE HELD TO FLEXIBLE CEILINGS ON HOW MUCH THEY CAN BUY WITHOUT GETTING MANAGEMENT APPROVAL THE WORKERS CLEARLY RELISH EXERCISING THEIR NEWFOUND AUTHORITY WE HAVE THE OPPORTUNITY TO PROVE THAT WE CAN DO IT SAYS A BEAMING MR PENNINGTON WHO PREVIOUSLY WORKED AT AN LTV CORP MISSILE PLANT THAT WAS STRUGGLING TO PUSH DECISIONMAKING DOWN INTO THE RANKS EVERY DAY THERE ARE 100 PROBLEMS THAT MANAGERS NEVER KNOW EXISTED THE PLANT'S COMPRESSORS ARE NOT ONLY CHEAPER BUT ALSO OF HIGH QUALITY WORKERS CHECK THE PRODUCTS CONSTANTLY RATHER THAN AT PRESCRIBED INTERVALS ALL THE FINISHED COMPRESSORS ARE CRANKED UP AND AT LEAST ONE FROM EVERY GROUP IS PULLED OFF THE LINE TO TEST NOISE AND ENERGY LEVELS THAT QUALITY IS CRITICAL TO CARRIER'S SUCCESS IN THE AIRCONDITIONING BUSINESS SINCE COMPRESSORS ACCOUNT FOR AS MUCH AS 50 OF AN AIR CONDITIONER'S PRODUCTION COSTS AND FAULTY COMPRESSORS CAN QUICKLY INCREASE THE COMPANY'S WARRANTY COSTS BUT CARRIER EXECUTIVES BELIEVE THE PLANT WILL NOT ONLY SERVE AS A MODEL FOR FUTURE PLANTS BUT KEEP IT COMPETITIVE SAYS MR KASSOUF MY GOAL IS TO SELL COMPRESSORS FROM ARKANSAS TO JAPAN 9301130024 930113 FIRST UNION SUNTRUST BANKS POST PROFIT RISE BY MARTHA BRANNIGAN STAFF REPORTER OF THE WALL STREET JOURNAL FIRST UNION CORP AND SUNTRUST BANKS INC TWO SUPERREGIONAL BANK HOLDING COMPANIES REPORTED IMPROVED FOURTHQUARTER EARNINGS CAPPING A STRONG YEAR MARKED BY WIDER NETINTEREST MARGINS AND IMPROVED CREDIT QUALITY FIRST UNION CHARLOTTE NC SAID QUARTERLY NET INCOME ROSE 52 TO 1348 MILLION FROM 889 MILLION A YEAR AGO AS NET INTEREST INCOME FEE INCOME AND CREDIT QUALITY IMPROVED PERSHARE EARNINGS WERE 95 CENTS UP FROM 66 CENTS A YEAR AGO SUNTRUST BANKS BASED IN ATLANTA SAID NET INCOME ROSE 11 TO 1057 MILLION FROM 955 MILLION A YEAR EARLIER REFLECTING STRONGER NET INTEREST INCOME HIGHER NONINTEREST INCOME AND IMPROVED CREDIT QUALITY PERSHARE EARNINGS ROSE TO 85 CENTS FROM 75 CENTS BOTH CONCERNS REPORTED RECORD EARNINGS FOR 1992 FOR THE YEAR SUNTRUST POSTED NET INCOME OF 4133 MILLION OR 328 A SHARE COMPARED WITH 3707 MILLION OR 290 A SHARE FOR 1991 FIRST UNION HAD 1992 NET INCOME OF 5152 MILLION OR 372 A SHARE COMPARED WITH 1991 NET OF 3187 MILLION OR 255 A SHARE BANKERS AND WALL STREET ANALYSTS SAID THE IMPROVED RESULTS AT THE BANKING CONCERNS REFLECT CONTINUED STRENGTHENING OF THE REGIONAL ECONOMY THESE BANKS AND OTHERS IN THE SOUTHEAST AND THE MIDWEST AS WELL ARE SEEING MODEST CORE GROWTH IN LOAN DEMAND SAID DENNIS F SHEA AN ANALYST WITH MORGAN STANLEY & CO IN NEW YORK SAID ROBERT ATWOOD FIRST UNION'S CHIEF FINANCIAL OFFICER THE APPETITE FOR GETTING BACK IN THE CREDIT MARKET IS PICKING UP WE'RE SEEING A PICKUP IN LOAN GROWTH FIRST UNION WHICH HAD ASSETS OF 513 BILLION AT THE END OF 1992 TOOK A LARGERTHANEXPECTED CHARGE IN THE LATEST QUARTER RELATED TO ITS PENDING ACQUISITION OF DOMINION BANKSHARES CORP ROANOKE VA THE CHARGE WHICH AMOUNTED TO 36 MILLION OR 18 CENTS A SHARE COMPARED WITH AN EARLIER ESTIMATED CHARGE OF 25 MILLION OR 13 CENTS PUT FIRST UNION SLIGHTLY BELOW ANALYSTS' CONSENSUS ESTIMATE AS REPORTED BY FIRST CALL CORP OF 102 FOR THE FOURTH QUARTER STILL ANALYSTS AGREED THAT THE CHARGE WAS NO CAUSE FOR CONCERN THE FUNDAMENTAL NUMBERS ARE VERY GOOD SAID MORGAN STANLEY'S MR SHEA CLEARLY IT'S A GOOD QUARTER AND A GOOD YEAR FOR FIRST UNION NONPERFORMING ASSETS AT FIRST UNION CONTINUED TO DECLINE IN THE LATEST QUARTER TO 966 MILLION FROM 995 MILLION IN THE THIRD QUARTER SUNTRUST WHICH HAD YEAREND ASSETS OF 366 BILLION REPORTED THAT IT SUSTAINED A WIDE NET INTEREST MARGIN OF 515 MATCHING ITS THIRDQUARTER MARGIN THE BANK ALSO SAID NONPERFORMING ASSETS FELL TO 5234 MILLION FROM 5786 MILLION IN THE THIRD QUARTER OF 1992 ITS LARGEST DROP ALL YEAR SUNTRUST WHICH EXCEEDED ANALYSTS' CONSENSUS ESTIMATE FOR THE QUARTER OF 83 CENTS A SHARE CONTINUED TO TAKE CONSERVATIVE STEPS TO BUILD ITS LOANLOSS RESERVE WITH A PROVISION OF 578 MILLION IN THE LATEST QUARTER SUNTRUST CONTINUES TO SHOW A VERY SOLID STEADY KIND OF GROWTH SAID RICHARD STILLINGER AN ANALYST WITH KEEFE BRUYETTE & WOODS IN NEW YORK 9301130023 930113 MARKETING BRIEF NOTED WHO'S NEWS ADAM GROSSER 31 WAS NAMED VICE PRESIDENT OF NEW MEDIA FOR THE NEW TECHNOLOGIES DIVISION AT SONY CORP'S SONY PICTURES ENTERTAINMENT UNIT HE HAD BEEN GENERAL MANAGER OF THE NEW MEDIA GROUP AT LUCASARTS ENTERTAINMENT 9301130022 930113 BUSINESS BRIEF CAPITAL CITIES/ABC INC ESPN AGREES TO A MERGER OF TESN EUROPEAN RIVAL CAPITAL CITIES/ABC INC'S ESPN AGREED TO MERGE ITS PARTLY OWNED EUROPEAN SPORTS NETWORK TESN WITH RIVAL SPORTS CHANNEL EUROSPORT THE VENTURE WOULD CREATE THE CONTINENT'S LARGEST SPORTS NETWORK REACHING NEARLY 40 MILLION HOUSEHOLDS FINANCIAL TERMS WEREN'T DISCLOSED BUT UNDER THE AGREEMENT ESPN WILL END UP WITH A 33 STAKE IN THE NEW VENTURE THE DEAL REQUIRES LEGAL AND REGULATORY APPROVALS EUROSPORT BASED IN PARIS IS A 24HOUR PANEUROPEAN MULTILINGUAL SERVICE OPERATED BY TELEVISION FRANCAIS 1 TESN IS OWNED BY A PARTNERSHIP OF ESPN CANAL PLUS AND GENERALE D'IMAGES A SUBSIDIARY OF CIE GENERALE DES EAUX THE VENTURE WILL BROADCAST A SINGLE CHANNEL UNDER THE EUROSPORT NAME THROUGHOUT EUROPE WITH COMMENTARIES IN THREE LANGUAGES ENGLISH GERMAN AND FRENCH 9301130021 930113 BUSINESS BRIEF JACKPOT ENTERPRISES INC SPECIAL DIVIDEND IS DECLARED SECONDPERIOD NET TO DOUBLE JACKPOT ENTERPRISES INC DECLARED A SPECIAL DIVIDEND OF 10 CENTS A SHARE AND SAID IT EXPECTS FISCAL SECONDQUARTER NET INCOME TO MORE THAN DOUBLE THE LEVEL OF THE YEAREARLIER QUARTER THE SPECIAL DIVIDEND WILL BE PAID FEB 25 TO STOCK OF RECORD FEB 12 THE LAS VEGAS GAMBLING OPERATOR SAID JACKPOT SAID THE SPECIAL DIVIDEND REFLECTS IMPROVED PROFITS AND IS INTENDED TO ENCOURAGE HOLDERS OF ITS 8 3/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014 TO CONVERT THEM INTO COMMON STOCK JACKPOT SAID IT SOON PLANS TO REDEEM ON A PRORATA BASIS 20 OF THE 285 MILLION FACE AMOUNT OF DEBENTURES OUTSTANDING NET INCOME IN THE SECOND QUARTER ENDED DEC 31 IS EXPECTED TO REACH AS MUCH AS 16 MILLION OR 24 CENTS A SHARE JACKPOT SAID REVENUE IS EXPECTED TO REACH ABOUT 21 MILLION A 38 INCREASE OVER THE YEAREARLIER LEVEL IN THE YEARAGO QUARTER JACKPOT HAD NET OF 721000 OR 13 CENTS A SHARE ON REVENUE OF 153 MILLION 9301130020 930113 BUSINESS BRIEF MCDONALD'S CORP SALES IN CANADA UK GAIN JAPAN MARKET STAYS SLUGGISH MCDONALD'S CORP OAKBROOK ILL SAID SALES IN CANADA AND THE UNITED KINGDOM IMPROVED IN THE FOURTH QUARTER BUT ADDED THAT JAPAN ITS LARGEST OVERSEAS MARKET REMAINED SLUGGISH WE HAVE A TOUGH ROW TO HOE IN JAPAN WHERE AWAYFROMHOME EATING REMAINS DEPRESSED COMPANY CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL R QUINLAN TOLD AN INVESTORS CONFERENCE IN LONDON DESPITE RECENT FLAT RESULTS IN SOME NATIONS MR QUINLAN REITERATED THE CHAIN'S GROWTH GOALS OF ANNUAL DOUBLEDIGIT CONSOLIDATED OPERATING EARNINGS GAINS OVER THE NEXT FIVE YEARS THAT WOULD BE ACHIEVED PARTLY BY 20 ANNUAL GROWTH OUTSIDE THE US HE SAID SEPARATELY IN A TELEVISION INTERVIEW MR QUINLAN SAID MCDONALD'S WOULD OPEN A RECORD NUMBER OF STORES AROUND THE WORLD THIS YEAR ALTHOUGH HE GAVE NO NUMBER I WOULD EXPECT ONE RESTAURANT TO OPEN MAYBE EVERY 12 HOURS OVER THE NEXT FEW YEARS HE SAID ON THE NIGHTLY BUSINESS REPORT TV SHOW THAT WOULD MEAN AN ANNUAL GROWTH RATE OF ABOUT 720 RESTAURANTS COMPARED WITH SOME 600 NOW 9301130019 930113 BUSINESS BRIEFS ACCLAIM ENTERTAINMENT INC SIGNED AN EXCLUSIVE AGREEMENT WITH COLUMBIA TRISTAR HOME VIDEO FOR THE DISTRIBUTION OF ACCLAIM'S VIDEO GAMES IN FRANCE AND THE BENELUX NATIONS ORYX ENERGY CO COMPLETED ITS THIRD HORIZONTAL WELL IN ECUADOR'S COCAPAYAMINO FIELD THE WELL IS CURRENTLY FLOWING AT 1530 BARRELS OF OIL A DAY QUANEX CORP ENTERED INTO A LETTER OF INTENT TO SELL ALL THE ASSETS OF ITS BELLVILLE TUBE UNIT TO AN AFFILIATE OF PC CAMPANA GROUP THE AMOUNT WASN'T DISCLOSED MCCORMICK & CO ACQUIRED THE SEAFOOD CONSUMER PRODUCTS BUSINESS OF GOLDEN DIPT CO A DIVISION OF DCA FOOD INDUSTRIES INC THE PURCHASE PRICE WASN'T DISCLOSED APPLIED BIOSCIENCE INTERNATIONAL INC'S ENVIRONMENTAL TESTING & CERTIFICATION CORP UNIT PURCHASED ABOUT 3 MILLION IN PREFERRED STOCK IN ENSYS ENVIRONMENTAL PRODUCTS INC ASHLAND OIL INC'S SUPERAMERICA GROUP UNIT REACHED A PRELIMINARY AGREEMENT TO SELL ITS 51 CONVENIENCE/GASOLINE STORES IN FLORIDA TO SHELL OIL CO THE US UNIT OF ROYAL DUTCH/SHELL GROUP TERMS WEREN'T DISCLOSED 9301130018 930113 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 PHILIP MORRIS COS 700 MILLION TWOPART ISSUE OF NOTES PRICED THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS THE FIRST PART CONSISTING OF 350 MILLION OF NOTES DUE JAN 15 1998 WAS PRICED AS 6 3/8 AT 99368 TO YIELD 6525 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 625 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE THE SECOND PART CONSISTING OF 350 MILLION OF NOTES DUE JAN 15 2003 WAS PRICED AS 7 1/4 AT 99473 TO YIELD 7325 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 65 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF MEDIUMTERM NOTES DUE JAN 20 1998 PRICED INITIALLY AS 602 AT PAR RATED TRIPLEA BY MOODY'S AND S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO NOVACARE INC 175 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE JAN 15 2000 PRICED AT PAR TO YIELD 55 THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO THE DEBENTURES ARE CONVERTIBLE INTO COMMON AT 2665 A SHARE THE ISSUE IS RATED BA3 BY MOODY'S AND DOUBLEBMINUS BY S&P SALOMON INC 150 MILLION OF NOTES DUE JAN 20 1998 PRICED AT PAR TO YIELD 7 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 106 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE BORROWER'S INVESTMENT BANKING UNIT FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE JAN 22 2003 PRICED AT PAR TO YIELD 712 INITIALLY THE DEBENTURES NONCALLABLE FOR THREE YEARS WILL BE REOFFERED AT VARIOUS PRICES THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO THE ISSUE WAS PRICED AT 44 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE WISCONSIN ELECTRIC POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE JAN 15 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY GOLDMAN SACHS THE ISSUE WILL BE REOFFERED AS 7 3/4 AT 97678 TO YIELD 7954 GOLDMAN'S BID RESULTED IN A 7992 NET INTEREST COST TO THE COMPANY NONCALLABLE FOR 10 YEARS THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P WISCONSIN ELECTRIC POWER IS A UNIT OF WISCONSIN ENERGY CORP NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY 16 BILLION OF SERIES 1993 A AND B POWER SYSTEM BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO INC GROUP THE OFFERING INCLUDES 117 MILLION OF SERIES 1993A POWER SYSTEM REVENUE BONDS FOR THE AGENCY'S PEAKING PROJECT AND 148 BILLION OF SERIES 1993B POWER SYSTEM REVENUE REFUNDING BONDS YIELDS FOR THE SERIES A BONDS RANGE FROM 460 IN 1997 TO 650 IN 2021 SERIES A BONDS DUE IN 200913 ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE UNINSURED SECURITIES ARE RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P YIELDS FOR THE SERIES B BONDS RANGE FROM 385 IN 1995 TO 646 IN 2012 SERIES B BONDS DUE IN 2017 AND 2023 ARE INSURED BY FGIC AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THE 2018 BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM THOSE AGENCIES THE UNINSURED SECURITIES ARE RATED SINGLEA BY MOODY'S AND SINGLEAMINUS BY S&P SMITH BARNEY SAID THE POWER AGENCY HAS DETACHED THE CALLS ON THE REFUNDING BONDS DUE IN 201226 AN OFFERING OF A PORTION OR ALL OF THE CALL RIGHTS ON THESE BONDS MAY BE MADE LATER IN THE WEEK SUBJECT TO A SEPARATE OFFERING MEMORANDUM THE FIRM SAID PROVINCE OF ALBERTA 750 MILLION CANADIAN DOLLARS US5871 MILLION OF 775 BONDS MATURING FEB 4 1998 PRICED AT 9943 TO YIELD 7891 OR 482 BASIS POINTS ABOVE A FIVEYEAR GOVERNMENT OF CANADA BOND THE LEAD MANAGER IS NESBITT THOMSON INC TEXAS 125 MILLION OF SERIES 1993 GENERAL OBLIGATION BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS FOR THE VETERANS' HOUSING ASSISTANCE BONDS RANGE FROM 300 IN 1993 TO 680 IN 2023 THE OFFERING IS SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX BOTH MOODY'S AND S&P ARE EXPECTED TO RATE THE ISSUE DOUBLEA NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY 964 MILLION OF ELECTRIC FACILITIES REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP THE TWOPART ISSUE WILL FUND A LONG ISLAND LIGHTING CO PROJECT AND INCLUDES 464 MILLION OF SERIES C BONDS WHICH HAVE BEEN PRICED TO YIELD 690 IN 2022 AND 50 MILLION OF SERIES D BONDS ALSO PRICED TO YIELD 690 IN 2022 THE BONDS ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX AND ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P MONTGOMERY COUNTY PA HIGHER EDUCATION AND HEALTH AUTHORITY 789 MILLION OF SERIES A 1993 HOSPITAL REVENUE BONDS PRICED BY A PAINE WEBBER INC GROUP THE ISSUE IS FOR THE ABINGTON MEMORIAL HOSPITAL YIELDS RANGE FROM 340 IN 1994 TO 630 IN 2022 THE BONDS ARE INSURED BY AMBAC INDEMNITY AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 700 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS THE OFFERING SERIES 199312 IS BACKED BY FANNIE MAE'S 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 87 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2933 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN THE OFFERING SERIES GOLD 1468 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS CHRYSLER CORP 125 BILLION ISSUE OF AUTOMOBILE LOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUING UNIT WAS MERRILL LYNCH ASSET BACKED CORP A SPECIAL PURPOSE VEHICLE THE OWNER OF THE AUTOMOBILE AND LIGHT DUTY TRUCK RECEIVABLES BACKING THE OFFERING IS PREMIER AUTO RECEIVABLES CO A UNIT OF THE CAR MAKER'S CHRYSLER FINANCIAL CORP SUBSIDIARY A 275 MILLION CLASS OF SENIOR CLASS MONEYMARKET NOTES WAS PRICED AT PAR TO YIELD 355 THE NOTES HAVE A 04YEAR AVERAGE LIFE AND A NINEMONTH EXPECTED FINAL MATURITY ON SEPT 15 1993 THE NOTES MEET THE RULE 2A7 GUIDELINES OF THE INVESTMENT COMPANY ACT OF 1940 MAKING THEM ELIGIBLE FOR PURCHASE BY MONEY MARKET MUTUAL FUNDS THE NOTES RECEIVED TRIPLEA RATINGS BY ALL FOUR RATING CONCERNS AS WELL AS TOP SHORTTERM RATINGS A 925 MILLION SENIOR CLASS OF TOTAL RATE OF RETURN NOTES WAS PRICED AS 5 1/8 AT 99820 TO YIELD 5281 A SPREAD OF 825 BASIS POINTS OVER THE TWOYEAR TREASURY NOTE RATED TRIPLEA BY ALL FOUR AGENCIES THE NOTES HAVE A 21YEAR AVERAGE LIFE AND A 45MONTH FINAL MATURITY ON AUG 16 1996 CREDIT ENHANCEMENT ON THE DEAL INCLUDES A 50 MILLION CLASS OF SUBORDINATE CERTIFICATES THAT WILL BE PRICED AT A LATER DATE MONTHLY PAYMENTS OF THE SENIOR CLASSES BEGIN FEB 16 FLEETWOOD CREDIT CORP 120 MILLION OF SENIOR RECREATIONAL VEHICLE ASSETBACKED CERTIFICATES PRICED AS 6 AT 99 22/32 TO YIELD 6210 OR 115 BASIS POINTS OVER THE THREEYEAR TREASURY NOTE THE CERTIFICATES ARE RATED TRIPLEA BY MOODY'S AND S&P BASED ON CREDIT SUPPORT FROM A SUBORDINATE CLASS OF ABOUT 105 MILLION THAT WAS NOT ISSUED IN THE PUBLIC MARKETS AND AN EXCESS SPREAD ACCOUNT THE SPREAD ACCOUNT INCLUDES EXCESS INTEREST THAT IS NOT USED TO PAY CERTIFICATE HOLDERS THE ACCOUNT REPRESENTS 075 OF THE DEAL INITIALLY AND BUILDS TO AT MOST 250 THROUGHOUT THE LIFE OF THE DEAL FLEETWOOD CREDIT IS A SUBSIDIARY OF FLEETWOOD ENTERPRISES INC THE OFFERING WAS LED BY FIRST BOSTON REPUBLIC OF ITALY SOVEREIGN FIVE BILLION MARKS OF 7 1/4 EUROBONDS DUE FEB 10 1998 AT AN ISSUE PRICE OF 101 3/4 VIA DEUTSCHE BANK AG OFFERED AT AN INITIAL PRICE OF PAR WITH A YIELD MARGIN 47 BASIS POINTS ABOVE GERMAN GOVERNMENT'S FIVEYEAR PAPER FEES 2 NORDIC INVESTMENT BANK SUPRANATIONAL 100 MILLION MARKS OF STRUCTURED FLOATINGRATE EURONOTES DUE FEB 3 2003 VIA DG BANKDEUTSCHE GENOSSENSCHAFTSBANK THE NOTES PAY INTEREST AT 10 FOR FIRST YEAR AND AT 195 OR TWICE THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR THE SECOND THROUGH TENTH YEARS THE ISSUE PRICE IS 102 WITH AN INITIAL FIXED OFFER PRICE OF 10035 FEES 215 PROVINCE OF ONTARIO CANADA 3 BILLION OF 7 3/8 GLOBAL NOTES DUE JAN 27 2003 AT A FIXED INITIAL OFFER PRICE OF 99693 VIA LEAD UNDERWRITERS SALOMON BROTHERS AND GOLDMAN SACHS AT OFFER PRICE THE BONDS YIELD 7419 A MARGIN OF 76 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE FEES 035 KREDITANSTALT FUR WIEDERAUFBAU GERMANY 500 MILLION OF 6 EUROBONDS DUE FEB 2 1998 VIA DEUTSCHE BANK CAPITAL MARKETS LTD OFFERED INITIALLY AT A FIXED PRICE OF 99104 TO YIELD 18 BASIS POINTS ABOVE THE COMPARABLE US TREASURY FEES 1/4 NAGOYA RAILROAD CO JAPAN 150 MILLION OF 2 1/2 EUROBONDS DUE JAN 29 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANT EXERCISABLE FROM FEB 12 1993 TO JAN 22 1997 TO BUY COMPANY SHARES AT A 2 1/2 PREMIUM TO THE CLOSING PRICE ON TUESDAY WHEN TERMS WILL BE SET FEES 2 1/4 TOKYU CONSTRUCTION CO JAPAN 100 MILLION OF 2 3/8 EUROBONDS DUE JAN 28 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANT EXERCISABLE FROM FEB 10 1993 TO JAN 21 1997 TO BUY COMPANY SHARES AT A 2 1/2 PREMIUM TO THE CLOSING PRICE NEXT WEDNESDAY WHEN TERMS WILL BE SET GUARANTEED BY MITSUBISHI BANK LTD FEES 2 1/4 SEIKO CORP JAPAN 100 MILLION OF 2 3/8 EUROBONDS DUE FEB 19 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA DAIWA EUROPE LTD EACH 5000 BOND CARRIES ONE WARRANT EXERCISABLE FROM FEB 23 1993 TO FEB 5 1997 TO BUY SHARES AT A 2 1/2 PREMIUM TO THE CLOSING PRICE NEXT WEDNESDAY WHEN TERMS WILL BE SET FEES 2 1/4 TOBU STORE CO JAPAN 65 MILLION OF 2 3/8 EUROBONDS DUE JAN 28 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA LEAD UNDERWRITER NIKKO EUROPE LTD EACH 10000 BOND CARRIES TWO WARRANTS EXERCISABLE FROM FEB 12 1993 TO FEB 21 1997 TO BUY SHARES AT A 2 1/2 PREMIUM TO THE CLOSING PRICE NEXT WEDNESDAY WHEN TERMS WILL BE SET FEES 2 1/4 KEIO TEITO ELECTRIC RAILWAY CO JAPAN 200 MILLION SWISS FRANCS OF 2 NOTES DUE JAN 28 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA UNION BANK OF SWITZERLAND EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM FEB 10 1993 TO JAN 21 1997 TO BUY SHARES TERMS WILL BE SET MONDAY FEES 1 5/8 9301130016 930113 WHO'S NEWS CONAGRA CONSOLIDATES CERTAIN OPERATIONS INTO TWO MAJOR UNITS OMAHA NEB CONAGRA INC CONSOLIDATED A NUMBER OF GROCERY PRODUCTS AND MEAT BUSINESSES INTO TWO MULTIBILLIONDOLLAR UNITS HEADED BY VETERAN EXECUTIVES THE MOVE IS AN APPARENT EFFORT TO REJUVENATE CONAGRA'S AILING FROZEN FOODS BUSINESS WHICH HAS ABOUT 1 BILLION A YEAR IN SALES AND TO ADD MARKETING STRENGTH TO ITS 75 BILLION REDMEAT OPERATION ALBERT J CROSSON 62 YEARS OLD WAS NAMED PRESIDENT OF CONAGRA GROCERY PRODUCTS COS WHICH WILL INCLUDE THE FROZEN FOODS UNIT AS WELL AS VARIOUS COMPANIES THAT WERE PART OF HUNTWESSON INC WHICH HE HAD HEADED THE OPERATIONS WILL NOW HAVE SALES OF ABOUT 3 BILLION CONAGRA THE NATION'S LARGEST INDEPENDENT FOOD COMPANY CONSOLIDATED MEAT OPERATIONS INTO CONAGRA MEAT PRODUCTS COS WITH NEARLY 10 BILLION IN ANNUAL SALES ITS PRESIDENT WILL BE LEROY O LOCHMANN 58 WHO WAS PRESIDENT AND CHIEF OPERATING OFFICER OF ITS ARMOUR SWIFTECKRICH WHICH WITH CONAGRA RED MEAT COS WILL COMPRISE THE NEW UNIT RICHARD L MONFORT 38 CONTINUES AS PRESIDENT OF RED MEAT COS A THIRD UNIT PREPARED FOODS COS LOST ITS BIGGEST BUSINESS UNDER THE CONSOLIDATION THE FROZEN FOOD OPERATIONS JAMES R TINDALL 46 WHO HAD BEEN OVERSEEING FROZEN FOODS ON AN INTERIM BASIS REMAINS PRESIDENT OF PREPARED FOODS CONAGRA SAID IT IS SEARCHING FOR SOMEONE TO HEAD THE FROZEN FOOD OPERATIONS UNDER MR CROSSON THAT PERSON WOULD SERVE AS PRESIDENT OF THAT BUSINESS IT INCLUDES THE BANQUET CHUN KING HEALTHY BALANCE HEALTHY CHOICE KID CUISINE LA CHOY MORTON AND PATIO BRANDS MESSRS CROSSON AND LOCHMANN CAME TO CONAGRA AS PART OF ITS ACQUISITION OF BEATRICE CO IN 1990 THEY ALONG WITH MESSRS MONFORT AND TINDALL ARE MEMBERS OF THE COMPANY'S OFFICE OF THE PRESIDENT 9301130015 930113 TECHNOLOGY BRIEF AMGEN INC R&D SPENDING WILL JUMP TOWARD 300 MILLION LEVEL AMGEN INC THOUSAND OAKS CALIF PLANS A MAJOR EXPANSION OF ITS RESEARCH AND DEVELOPMENT INVESTMENT DURING 1993 TO LEVELS THAT WILL APPROACH 300 MILLION LOWELL SEARS CHIEF FINANCIAL OFFICER TOLD THE HAMBRECHT & QUIST LIFE SCIENCES CONFERENCE IN SAN FRANCISCO THAT'S UP FROM 1992 EXPENDITURES OF ROUGHLY 180 MILLION A SPOKESMAN FOR THE BIOTECH FIRM SAID MR SEARS SAID THE R&D BOOST WILL ADVANCE AMGEN'S BASIC RESEARCH PROGRAMS IN BLOODCELL GROWTH FACTORS SOFTTISSUE GROWTH FACTORS NEUROBIOLOGY AND INFLAMMATION AND NUCLEIC ACID THERAPEUTICS 9301130014 930113 REVIEW & OUTLOOK EDITORIAL ASIDES CHILE WELCOMES BUTCHER CHILE'S DEPUTY FOREIGN MINISTER ANNOUNCED YESTERDAY THAT EAST GERMANY'S CRUEL FORMER HEAD ERICH HONECKER COULD COME TO LIVE WITH THE HONECKER FAMILY IN CHILE THE MAN WHO BUILT THE BERLIN WALL AND UNAPOLOGETICALLY HAD GERMANS SHOT IN THE BACK AS THEY TRIED TO CRAWL OR SWIM TO FREEDOM IN THE WEST IS APPARENTLY A HERO TO CHILE'S SOCIALISTS BECAUSE HE HARBORED SOME OF THEM AFTER THE CHILEAN COUP IN 1973 ONE OF TWO GERMAN COURTS PROSECUTING HONECKER ABANDONED ITS MANSLAUGHTER CHARGES YESTERDAY HONECKER MAY IN TIME DIE AMONG CHILEANS WHO SORROW FOR HIM 9301130013 930113 LETTERS TO THE EDITOR MR HAMBURG GOES TO DC IN A SUIT YOUR GRATUITOUS EDITORIAL ABOUT ME WAS MOST INACCURATE WHO'LL TELL THE FOLEYS ASIDES DEC 15 TO SET THE RECORD STRAIGHT I HAVE WORN A BUSINESS SUIT NOT BLUE JEANS ON EACH AND EVERY OCCASION I HAVE BEEN ON THE HOUSE FLOOR MY WIFE SON AND I LIVE IN A SMALL APARTMENT NEAR THE CAPITOL LIKE THE REPUBLICAN INCUMBENT I DEFEATED IN NOVEMBER I CAME OUT FOR THE DECRIMINALIZATION OF MARIJUANA I DREW 2200 IN UNEMPLOYMENT BENEFITS IN 1991 AFTER BEING LAID OFF FROM MY JOB IN A TYPESETTING BUSINESS THESE BENEFITS ENDED 15 MONTHS PRIOR TO MY RECENT ELECTION FINALLY YOU CRITICIZED MY HAVING RAISED FUNDS WITH CONCERTS PUT ON BY MY FRIEND BONNIE RAITT IT'S TRUE THAT BONNIE JACKSON BROWNE AND HOLLY NEAR HELPED ME RAISE ABOUT 150000 MY OPPONENT BROUGHT IN THREE REPUBLICAN POLITICIANS NEWT GINGRICH JACK KEMP AND GUY VAN DER JAGT TO MAKE APPEARANCES AND RAISE A SIMILAR AMOUNT ON HIS BEHALF REP GINGRICH BARELY SURVIVED HIS OWN CAMPAIGN IN GEORGIA MR KEMP IS JOB HUNTING AND FORMER REPUBLICAN NATIONAL COMMITTEE CHAIRMAN VAN DER JAGT WAS DEFEATED IN HIS MICHIGAN PRIMARY CLEARLY BONNIE IS THE PEOPLE'S CHOICE AS WAS I WHAT'S YOUR BEEF AS A REGISTERED REPUBLICAN WHO HELPED ELECT DAN HAMBURG I FOUND YOUR SNIDE ASIDE INSULTING AND INACCURATE I VOTED FOR MR HAMBURG BECAUSE I KNOW HIM FROM LONG ACQUAINTANCE TO BE A PERSON OF HIGH INTELLIGENCE ENERGY AND INTEGRITY FOR THE RECORD HE HAS STATED THAT HE INTENDS TO FOLLOW THE HOUSE DRESS CODE AND THAT THE BLUE JEANS STORY IS ERRONEOUS BUT PERHAPS CONGRESS COULD USE SOME PRINCIPLED PEOPLE IN BLUE JEANS AND FEWER HYPOCRITES IN HIGHPRICED SUITS 9301130012 930113 WHAT'S NEWS BUSINESS AND FINANCE HOMEOFFICE DEDUCTIONS ON FEDERAL INCOME TAXES HAVE BEEN MADE HARDER FOR PEOPLE WHO DO SOME BUT NOT MOST OF THEIR WORK AT HOME THE SUPREME COURT RULING YESTERDAY COULD AFFECT THOUSANDS OF TAXPAYERS IN NUMEROUS LINES OF WORK INCLUDING DOCTORS FINANCIAL ADVISERS AND SALESPEOPLE AND RAISES A HOST OF QUESTIONS BENTSEN EMPHASIZED THE URGENCY OF REDUCING THE DEFICIT THE SENATE FINANCE PANEL UNANIMOUSLY RECOMMENDED THAT THE FULL CHAMBER APPROVE HIM AS TREASURY SECRETARY VOTING BEFORE ASKING ANY QUESTIONS MCDONNELL DOUGLAS IS EXPECTED TO CLAIM IT IS OWED AS MUCH AS 12 BILLION BY THE AIR FORCE FOR PAST DISRUPTIONS OF THE C17 MILITARY TRANSPORT SAY PEOPLE FAMILIAR WITH THE COMPANY'S PLANS PAUL MOZER FACES BROADER CHARGES TIED TO SALOMON BROTHERS' TREASURY SECURITIES SCANDAL THE NEW CHARGES FOLLOWED THE COLLAPSE OF A PLEA BARGAIN AGREEMENT BY MOZER SALOMON'S FORMER HEAD OF GOVERNMENT TRADING KMART DEBT TOTALING 4 BILLION WAS PLACED UNDER REVIEW FOR POSSIBLE DOWNGRADE BY MOODY'S WHICH CITED CONCERNS ABOUT THE COMPANY'S RECENT LACKLUSTER RESULTS IN THE MIDST OF A COSTLY STORERENOVATION PROGRAM RISING US OIL DEMAND IS SHOWN IN AN AMERICAN PETROLEUM INSTITUTE REPORT BEING RELEASED TODAY THE SUBSTANTIAL INCREASE OF 16 IN 1992 DELIVERIES A MEASURE OF DEMAND COULD AUGUR A BOOST SOON FOR OIL PRICES DELTA AIR LINES TODAY WILL CUT CERTAIN TICKET PRICES FOR LEISURE TRAVEL BETWEEN 30 AND 40 A MOVE THAT UNDERCUTS A NEW FARE STRUCTURE UNVEILED THIS WEEK BY NORTHWEST AIRLINES AND KICKS OFF THE FIRST FARE WAR OF 1993 BUSH'S ECONOMIC ADVISORY COUNCIL USED ITS FINAL ANNUAL REPORT TO WARN OF THE DANGERS OF TOO MUCH GOVERNMENT INTERFERENCE IN THE MARKETPLACE TRW WILL STOP USING CREDIT DATA IN ITS MAILINGLIST BUSINESS BOWING TO FTC PRESSURE BUT RIVAL CREDITREPORTING CONCERN TRANS UNION PLANS TO CONTINUE ITS MAILINGLIST ACTIVITY AND WILL FIGHT THE FTC IN COURT IF NECESSARY PHILIP MORRIS DISCLOSED A 56 DROP IN 1992 SHIPMENTS OF MARLBORO CIGARETTES THE STEEPEST DROP IN THE BRAND'S HISTORY THE COMPANY SOUGHT TO REASSURE INVESTORS ABOUT THE STRENGTH OF THE HIGHLY PROFITABLE LINE IN THE FACE OF COMPETITION FROM DISCOUNT BRANDS STOCK PRICES INCHED HIGHER WITH THE DOW JONES INDUSTRIALS GAINING 189 TO 326464 BOND PRICES ENDED SLIGHTLY LOWER THE DOLLAR CLOSED MIXED AT&T JOINED FORCES WITH TWO NETWORK EQUIPMENT COMPANIES TO PERFECT EQUIPMENT THAT WILL BRING MULTIMEDIA SERVICES TO HOMES AND BUSINESSES HUNTER ENVIRONMENTAL SERVICES TOP OFFICIALS SOLD ABOUT 900000 OF COMPANY STOCK IN THE MONTH BEFORE THE SHARE PRICE PLUMMETED 82 ON NEWS THAT HUNTER HAD BEEN DENIED A PERMIT TO BUILD A HAZARDOUSWASTE DUMP PUBLIC SERVICE CO OF NEW MEXICO SAID IT WILL SHED ASSETS LAY OFF EMPLOYEES AND REPLACE TWO OF ITS MOST SENIOR EXECUTIVES IN A WIDERANGING ATTEMPT TO LOWER ELECTRICITY PRICES DIGITAL EQUIPMENT HIRED THE CHIEF EXECUTIVE OF PERSONALCOMPUTER MAKER ZENITH DATA SYSTEMS ENRICO PESATORI TO RUN ITS OWN PC BUSINESS JAPAN'S BANKERS AND FINANCIAL AUTHORITIES APPEAR TO BE SEEKING A RESCUE PLAN FOR THE NATION'S HOUSINGLOAN COMPANIES THE WEAKEST LINK IN THE NATION'S TOTTERING BANKING SYSTEM PARAMOUNT'S NET CLIMBED 22 IN THE FISCAL FOURTH QUARTER ON IMPROVED RESULTS AT ITS MOTION PICTURE UNIT AND VARIOUS PUBLISHING OPERATIONS APPLE COMPUTER NAMED DAVID NAGEL TO HEAD UP SOFTWARE DESIGN FOR ITS MACINTOSH LINE HE SUCCEEDS ROGER HEINEN WHO IN A SURPRISE MOVE LAST WEEK WENT TO RIVAL MICROSOFT BRITISH BREWER GUINNESS IS REORGANIZING ITS UNITED DISTILLERS UNIT'S SCOTCH WHISKY PRODUCTION OPERATIONS RESULTING IN A 195 MILLION CHARGE IBM'S CLOSELY WATCHED NEW VENTURE THAT RUNS OTHER COMPANIES' COMPUTER SYSTEMS POSTED A SMALL PROFIT ON ROUGHLY 1 BILLION IN REVENUE IN 1992 ITS FIRST FULL YEAR OF BUSINESS TOKYO SHARES ENDED MIXED BUT THE NIKKEI SNAPPED A FIVESESSION LOSING STREAK CLIMBING 9150 TO 1668105 LONDON EQUITIES' RETREAT CONTINUED BONDS LEHMAN BROTHERS TREASURY INDEX 467188 OFF 1570 COMMODITIES OIL 1838 A BARREL OFF 40 CENTS DOW JONES FUTURES INDEX 12311 OFF 070 SPOT INDEX 12373 UP 025 DOLLAR 12520 YEN UP 005 16307 MARKS OFF 00023 9301130011 930113 INTERNATIONAL PAPER'S FOURTHQUARTER LOSS TOTALED 176 MILLION PURCHASE NY INTERNATIONAL PAPER CO REPORTED A FOURTHQUARTER LOSS OF 176 MILLION THAT INCLUDED A PREVIOUSLY ANNOUNCED SPECIAL CHARGE FOR COSTCUTTING MEASURES THE QUARTERLY LOSS WHICH WORKS OUT TO 146 A SHARE INCLUDED THE 263 MILLION CHARGE IN THE 1991 QUARTER THE LEADING PAPER MANUFACTURER HAD EARNINGS OF 66 MILLION OR 59 CENTS A SHARE INCLUDING 41 MILLION IN SPECIAL CHARGES SALES IN THE QUARTER ROSE 63 TO 34 BILLION FROM 32 BILLION A YEAR EARLIER THE COMPANY REPORTED THE RESULTS AFTER THE CLOSE OF TRADING YESTERDAY ITS SHARES WERE QUOTED UP 125 CENTS AT 63125 IN LATE NEW YORK STOCK EXCHANGE TRADING INTERNATIONAL PAPER THE FIRST OF THE MAJOR PAPER COMPANIES TO REPORT FOURTHQUARTER RESULTS SAID IN NOVEMBER IT WOULD CLOSE OR CONSOLIDATE SEVERAL FACILITIES AND DISMISS OR RELOCATE ABOUT 2100 EMPLOYEES IN ITS COSTCUTTING EFFORT WITHOUT THE SPECIAL CHARGES OPERATING EARNINGS WERE STILL DOWN 19 TO 87 MILLION OR 71 CENTS A SHARE FROM 107 MILLION OR 96 CENTS A SHARE WEAK PRICES CONTINUED TO HAMPER EARNINGS IN PULP COATED AND UNCOATED PRINTING AND WRITING PAPERS SAID JOHN GEORGES CHAIRMAN AND CHIEF EXECUTIVE OFFICER ONGOING STRONG PERFORMANCES WERE SEEN HOWEVER IN TIMBER AND WOODPRODUCTS BUSINESSES FOR THE YEAR EARNINGS DROPPED 53 TO 86 MILLION OR 71 CENTS A SHARE FROM 184 MILLION OR 166 A SHARE IN 1991 IN ADDITION TO THE FOURTHQUARTER CHARGE THERE WAS A 50 MILLION CHARGE FOR ACCOUNTING CHANGES AND A 6 MILLION CHARGE FOR EARLY RETIREMENT OF DEBT FULLYEAR 1991 RESULTS INCLUDED 268 MILLION IN SPECIAL CHARGES RELATED TO ACCOUNTING CHANGES AND SEVERANCE COSTS SALES ROSE 7 TO 136 BILLION FROM 127 BILLION 9301130010 930113 JUSTICES CURB HOMEOFFICE TAX DEDUCTIONS COURT OVERTURNS A CLAIM BY DOCTOR USING HOME FOR PORTION OF BUSINESS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT HARDER FOR PEOPLE WHO DO SOME BUT NOT MOST OF THEIR WORK AT HOME TO DEDUCT THEIR HOMEOFFICE EXPENSES ON THEIR FEDERAL INCOME TAX RETURNS THE DECISION COULD AFFECT THOUSANDS OF TAXPAYERS IN NUMEROUS LINES OF WORK INCLUDING DOCTORS FINANCIAL ADVISERS AND SALESPEOPLE THE HIGH COURT SAID THE AVAILABILITY OF THE HOMEOFFICE DEDUCTION TURNED ON TWO PRIMARY CONSIDERATIONS THE RELATIVE IMPORTANCE OF THE ACTIVITIES PERFORMED AT HOME AND THE TIME SPENT AT EACH PLACE THE TAXPAYER DOES BUSINESS WRITTEN BY JUSTICE ANTHONY KENNEDY THE MAJORITY OPINION STRESSED THAT THE HIGH COURT COULDN'T SUPPLY A SIMPLE FORMULA THAT WOULD PROVIDE A CLEAR ANSWER IN EVERY CASE BECAUSE OF THE WIDE RANGE OF FACTS IN HOMEOFFICE DISPUTES AS A PRACTICAL MATTER YESTERDAY'S DECISION WILL EMBOLDEN THE INTERNAL REVENUE SERVICE TO REJECT DEDUCTION CLAIMS BUT IT PROBABLY WON'T DIMINISH LITIGATION OVER THE HOMEOFFICE ISSUE THE CASE INVOLVED A DEDUCTION CLAIMED BY A DOCTOR WHO SPENT 10 TO 15 HOURS A WEEK WORKING AT HOME THE IRS HAD DENIED THE DEDUCTION WHICH AMOUNTED TO 2500 FOR TAX YEAR 1983 THE DOCTOR NADER SOLIMAN A SELFEMPLOYED ANESTHESIOLOGIST WORKED IN THREE HOSPITALS A TOTAL OF 30 TO 35 HOURS A WEEK DURING THAT YEAR HE USED A SPARE BEDROOM IN HIS MCLEAN VA APARTMENT TO MAINTAIN RECORDS SPEAK WITH PATIENTS BY TELEPHONE AND READ MEDICAL JOURNALS BUT THE IRS DETERMINED THAT THE HOME OFFICE WASN'T HIS PRINCIPAL PLACE OF BUSINESS WHICH IS WHAT THE FEDERAL TAX CODE REQUIRES FOR A DEDUCTION OF HOMEOFFICE EXPENSES A SEPARATE PROVISION OF THE CODE ALLOWS A DEDUCTION FOR HOME OFFICES USED EXCLUSIVELY TO SEE PATIENTS CLIENTS OR CUSTOMERS DR SOLIMAN APPEALED THE IRS'S DECISION AND THE US TAX COURT REVERSED IT THE TAX COURT STRESSED THREE FACTORS IN ITS DECISION THAT THE HOME OFFICE WAS ESSENTIAL TO DR SOLIMAN'S BUSINESS THAT HE SPENT A SUBSTANTIAL AMOUNT OF TIME THERE AND THAT THERE WASN'T ANOTHER PLACE AVAILABLE FOR HIM TO DO THE TASKS HE DID AT HOME NONE OF THE HOSPITALS WHERE HE WORKED PROVIDED DR SOLIMAN WITH OFFICE SPACE THE APPROACH TAKEN BY THE TAX COURT IN THIS CASE WAS MORE LENIENT TOWARD TAXPAYERS THAN THE LEGAL STANDARD IT AND OTHER COURTS APPLIED IN MANY EARLIER CASES THE US APPEALS COURT FOR THE FOURTH CIRCUIT IN RICHMOND VA SAID THE TAX COURT'S THREEFACTOR ANALYSIS WAS APPROPRIATE NOTING THAT THE IRS HAD PERMITTED SALESPEOPLE TO DEDUCT EXPENSES FROM A HOME OFFICE EVEN IF THEY SPEND MOST OF THEIR TIME ON THE ROAD ON AN APPEAL BY THE JUSTICE DEPARTMENT THE SUPREME COURT REVERSED THE FOURTH CIRCUIT RULING SAYING THAT THE LOWER COURT HAD IMPROPERLY FAILED TO CONSIDER THE RELATIVE SIGNIFICANCE OF THE HOME OFFICE JUSTICE KENNEDY WROTE FOR THE MAJORITY THAT THE APPEALS COURT HAD GIVEN TOO MUCH ATTENTION TO THE ESSENTIAL NATURE OF THE TASKS DR SOLIMAN DID AT HOME MOREOVER THE LACK OF ALTERNATIVE OFFICE SPACE WAS TOTALLY IRRELEVANT JUSTICE KENNEDY ASSERTED FROM AN OBJECTIVE STANDPOINT HE CONTINUED DR SOLIMAN'S TREATMENT OF PATIENTS IN HOSPITALS CONSTITUTED HIS MAIN PROFESSIONAL ACTIVITY WHILE HIS WORK AT HOME WAS DISTINCTLY LESS IMPORTANT AS A GENERAL MATTER THE PLACE WHERE GOODS OR SERVICES ARE DELIVERED MUST BE GIVEN GREAT WEIGHT JUSTICE KENNEDY SAID ON THE QUESTION OF TIME HE ADDED THE HOURS DR SOLIMAN SPENT AT HOME WERE INSUFFICIENT TO JUSTIFY A DEDUCTION 9301130008 930113 TUESDAY'S MARKETS STOCKS INCH UP AS BONDS SLIP DOLLAR IS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL CONFUSING SIGNALS FROM THE INCOMING CLINTON ADMINISTRATION LEFT STOCK PRICES BARELY HIGHER AND BOND PRICES SLIGHTLY LOWER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 189 POINTS TO 326464 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX GAINED 009 TO 43104 BUT THE NASDAQ COMPOSITE INDEX LOST 295 TO 67945 HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAID STOCK AND BOND INVESTORS WERE CONFUSED BY THE CONFIRMATION TESTIMONY OF CLINTON CABINET NOMINEES LEON PANETTA AND LLOYD BENTSEN WE'RE ALL TRYING TO GET A SENSE FROM THE TESTIMONY WHAT THE CLINTON ECONOMIC PACKAGE WILL LOOK LIKE MR JOHNSON SAID BUT IT'S NOT CLEAR WHETHER THE EMPHASIS WILL BE ON SHORTTERM STIMULUS OR DEFICITREDUCTION MR JOHNSON SAID THE BOND MARKET SLUMPED AS BOND TRADERS FOCUSED ON THE POSSIBILITY OF ECONOMIC STIMULUS WHICH COULD STOKE INFLATION AND BOOST INTEREST RATES STOCK INVESTORS HOWEVER WERE TROUBLED BY THE PROSPECT OF VIGOROUS DEFICITREDUCTION MEASURES WHICH COULD FURTHER WEAKEN THE ALREADY SLUGGISH ECONOMY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK MARKET INDEX LOST 022 TO 9116 IN MAJOR MARKET ACTION STOCK PRICES ROSE SLIGHTLY VOLUME TOTALED 2393 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 890 ISSUES ROSE AND 888 FELL BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN A QUARTERPOINT OR LESS THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 747 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16307 MARKS AND 12520 YEN COMPARED WITH 16330 MARKS AND 12515 YEN MONDAY 9301130006 930113 LIFE IS NO BREEZE WHEN WINDS BLOW IN THE SHETLAND ISLES WHERE THE TANKER FOUNDERED CATS PEOPLE EVEN COWS ARE KNOWN TO TAKE FLIGHT BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL SUMBURGH HEAD SCOTLAND ALEXANDROS GELIS CAPTAIN OF THE OIL TANKER BRAER AND JOHN ROWLAND A SECURITY GUARD HAVE SOMETHING IN COMMON THEY'VE BOTH BEEN MUGGED BY THE FIERCEST DENIZEN OF THE SHETLAND ISLANDS THE WIND THE WIND BLEW CAPT GELIS'S POWERLESS 797FOOT 45000TON TANKER ONTO THE ROCKS NEAR FITFUL HEAD UNLEASHING A MAJOR OIL SPILL MR ROWLAND'S ENCOUNTER THOUGH NOT NEARLY AS DISASTROUS WAS STILL HAIRRAISING ON NEW YEAR'S DAY 1992 THE WIND PICKED UP THE LOCAL RESIDENT ALL 250 POUNDS OF HIM AND BLEW HIM INTO A DITCH ABOUT 10 FEET AWAY HE HAD AN INKLING THIS MIGHT HAPPEN AFTER SEEING A 15FOOT FISHING BOAT SAIL THROUGH THE AIR ABOVE HIS HEAD SHETLAND WINDS OCCASIONALLY TURN HUMANS AND EVEN COWS INTO KITES STILL THE FLYING BOAT PREVIOUSLY STRAPPED DOWN IN A NEIGHBOR'S YARD SURPRISED HIM WHEN A SHETLANDER TIES DOWN A BOAT MR ROWLAND EXPLAINS HE REALLY TIES IT DOWN IN MOST OF THE WORLD WINDS COME AND GO HERE THEY BLOW BLOW BLOW THEY HAVE BLOWN FIERCELY AND UNCEASINGLY WITH GUSTS OF 100 MILES PER HOUR SINCE THE JAN 5 WRECK OF THE BRAER VISITORS ARE ASTONISHED LOCALS ARE NOT IN JANUARY 1983 GALEFORCE WINDS BLEW FOR 29 STRAIGHT DAYS THE NEW YEAR'S WIND THAT BLEW MR ROWLAND OFF THE GROUND REACHED GUSTS OF 201 MPH ON THE ISLE OF UNST NORTH OF HERE THIS IS AN UNOFFICIAL READING THE OFFICIAL WEATHERSERVICE WIND GAUGE BLEW AWAY IF ACCURATE THE GUST EASILY SURPASSES THE 177 MPH WIND THAT THE GUINNESS BOOK OF WORLD RECORDS SAYS BLASTED THE SHETLANDS IN 1962 FEW QUARREL WITH THE 201 MPH FIGURE SINCE THAT SAME GALE BLEW A BIRDWATCHER OUT OF A STONE HUT AND OVER A CLIFF SEVERAL HUNDRED FEET AWAY SHE DIED THE WINDS BEGIN BLOWING HERE IN SEPTEMBER AND OFTEN DON'T STOP UNTIL APRIL THAT'S THE OFFICIAL GALE SEASON OF COURSE WE GET GALES AT OTHER TIMES JUNE JULY AT ANY TIME SAYS ALEN GAIR A LERWICK WEATHER FORECASTER THE REASON WHY GALES LASH THIS PLACE IS NO MYSTERY THOUGH THE GALES THEMSELVES OFTEN DO MYSTERIOUS THINGS THE SHETLANDS SIT SQUARELY IN THE PATH OF CHOICE FOR ICY STORMS THAT BLOW OUT OF THE SEA NEAR ICELAND AND HOWL ACROSS THE NORTH SEA BEFORE SLAMMING INTO EUROPE THEY USUALLY HIT THE SHETLANDS JUST ABOUT THE TIME THEY'VE GAINED FULL SPEED OH IT'S A LOVELY PLACE TO FLY SAYS BILL ROY A HELICOPTER PILOT FOR BRITISH INTERNATIONAL HELICOPTERS WHICH FERRIES WORKERS TO NORTH SEA OIL RIGS NEAR HERE I LIKE THE FOGS THAT MOVE AT 80 MPH THEY MAKE LIFE INTERESTING THEN THERE'S THE PHENOMENON CALLED VORTEX RING A HELLISH DOWNDRAFT IT WAS BLAMED FOR THE CRASH OF A HELICOPTER OFFSHORE HERE LAST MARCH THAT KILLED 11 PEOPLE COMPUTER SIMULATIONS BASED ON THE CHOPPER'S DATA RECORDER SHOWED THAT THEORETICALLY THE CRAFT WAS FLYING WITH ENOUGH POWER TO SAFELY NAVIGATE PREVAILING GALES BUT IT WAS SUDDENLY BATTED OUT OF THE AIR AND INTO THE OCEAN BY A HUGE FIST OF WIND OVER AT THE LIFEBOAT STATION AT LERWICK THE SHETLANDS' BIGGEST FISHING PORT THE WIND IS THE MAIN SOURCE OF BUSINESS MOST OF OUR RESCUE CALLS ARE IN FORCE 8 ABOUT 50 MPH WINDS OR BETTER SAYS MAGNUS SHEARER SECRETARY OF THE LOCAL LIFEBOAT ASSOCIATION THIS MEANS PUTTING A 52FOOT RESCUE BOAT INTO SEAS THAT COMMONLY RUN TO 50 FEET THOUGH THE ODD 100FOOT WAVE IS A WELLKNOWN PHENOMENON HERE YES YOU COULD SAY IT GETS ROUGH OUT THERE SAYS MR SHEARER OF COURSE IT CAN EVEN GET A LITTLE ROUGH ONSHORE MR SHEARER HAS AN ACQUAINTANCE WHO HAD A COW BLOWN OUT OF A PASTURE A FEW YEARS BACK MAYBE THERE SHOULD BE SIGNS ON SHETLAND BEWARE OF FLYING COWS HE ADDS OH SURE MY CATS FLY ALL THE TIME SAYS STEPHEN CHAMBERS A RESEARCH SCIENTIST WHO LIVES IN A STONE HOUSE PERCHED ON A BLUFF OVER THE SEA NEAR HERE YOU KICK THEM OUT THE DOOR FOR A LITTLE EXERCISE AND POOF THEY'RE GONE IT'S QUITE FUNNY TO SEE HOW FAR DO CATS GET BEFORE LANDING MR CHAMBERS QUAFFING A PINT OF ALE IN A LOCAL PUB TO ESCAPE A BLIZZARD THAT IS BLOWING OVER THE SHETLANDS AT THIS VERY MOMENT GESTURES TO A WALL ABOUT 15 FEET AWAY BUT IT DEPENDS ON HOW STRONG THE WIND IS REALLY YES THE CATS ALWAYS LAND ON THEIR FEET MR CHAMBERS A PHYSICIST EXPLAINS A PREFLIGHT PHENOMENON THAT AFFECTS HUMANS SHORTLY BEFORE THEY ARE SWEPT OFF THEIR FEET HERE WE CALL IT SHETLANDS DANCING YOU ARE GRABBED BY THE WIND AND TWIRLED ROUNDANDROUND THEN YOU'RE USUALLY BLOWN OVER THIS IS WHY WINDWARY SHETLANDERS ALWAYS WALK DOWNWIND OF ROADS SO AS TO NOT END UP IN THE PATH OF ONCOMING CARS DRIVERS ALSO TAKE PECULIAR PRECAUTIONS MR CHAMBERS WHOSE VEHICLE IS A TWOTON LAND ROVER SAYS HE DRIVES WITH A QUARTER OF A TON OF COAL IN THE TRUNK MOST PEOPLE HAVE SOMETHING SIMILAR TO KEEP THEM ON THE ROAD HE SAYS MR CHAMBERS ADDED THE COAL AFTER A RECENT FLYING EXPERIENCE IN HIS ROVER I WAS AIRBORNE FOR AT LEAST 15 FEET HE SAYS THAT WAS ENOUGH HOUSES SELDOM BLOW OVER HERE BECAUSE ANCIENT SHETLANDERS REALIZING THAT THE WIND WASN'T TO BE TRIFLED WITH BUILT THEM OUT OF STONE WITH WALLS TWO TO THREE FEET THICK BOATS DON'T FARE AS WELL WRECKS ON THE SHORE HERE ARE BATTERED TO SMITHEREENS BY WINDS AND WAVES USUALLY WITHIN A DAY OR TWO AND THEN DISAPPEAR THE TANKER BRAER WAS MADE OF SLIGHTLY STERNER STUFF SHE LASTED FOR A WEEK BEFORE BEING POUNDED INTO FOUR PIECES YESTERDAY THE SAME WIND THAT IS BEING BLAMED FOR THE WRECK HOWEVER MAY YET GET CREDIT FOR LIMITING THE DAMAGE OF THE ENSUING 25MILLIONGALLON OIL SPILL A LOT OF THE OIL IS BEING CHURNED UP BROKEN DOWN AND BLOWN AWAY INTO THE AIR 9301130005 930113 BOEING CO IS FACING A ONEDAY WALKOUT BY ENGINEERS UNION SEATTLE BOEING CO'S 28000MEMBER ENGINEERS' UNION SAID IT WILL STRIKE FOR ONE DAY NEXT WEEK TO PROTEST THE COMPANY'S REFUSAL TO RETURN TO CONTRACT TALKS THE STRIKE WILL OCCUR TUESDAY THE UNION ADDED UNLESS THE COMPANY AGREES TO RETURN TO THE BARGAINING TABLE BY FRIDAY CHARLES BOFFERDING EXECUTIVE DIRECTOR OF THE UNION ALSO ASKED A FEDERAL MEDIATOR TO TRY TO RESOLVE THE STANDOFF THE UNION SAID LATER BOEING SAID IN A STATEMENT THAT IT WANTS A MEETING WITH THE MEDIATOR TO CLARIFY CONFUSION CREATED BY THE UNION'S POSITION THE COMPANY SAID IT WAS DISAPPOINTED BY THE STRIKE PLAN ADDING THAT MANAGERS HOPE THE WALKOUT WOULD BE FOLLOWED BY EFFORTS TO WIN MEMBERSHIP APPROVAL OF BOEING'S OFFERS THE WALKOUT PLANNED BY THE NORMALLY DOCILE SEATTLE PROFESSIONAL ENGINEERING EMPLOYEES ASSOCIATION ATTESTS TO GROWING FRICTION OVER BOEING'S DECLARATION OF AN IMPASSE IN THE TALKS IN DECEMBER THE IMPACT OF THE ONEDAY STRIKE MAY BE MOSTLY SYMBOLIC EVEN IF MANY MEMBERS WALK OUT AN UNCERTAIN PROSPECT IN A UNION IN WHICH MEMBERSHIP ISN'T MANDATORY COMPANY OPERATIONS WOULD BE ONLY SLIGHTLY AFFECTED AND EVEN IN THE EVENT OF A LONGER TERM WALKOUT THE IMPACT ON DAYTODAY OPERATIONS COULD BE MINIMAL BOEING OFFICIALS HAVE MAINTAINED THAT NEGOTIATIONS WITH THE UNION ARE OVER IN DECEMBER THE COMPANY IMPLEMENTED TERMS OF ITS FINAL OFFER WHICH AFFECTED ABOUT 1 BILLION A YEAR IN SALARIES FOR THE 25000 EMPLOYEES IN THE BARGAINING UNIT OVER A THREEYEAR PERIOD THE COMPANY OFFERED A 6 LUMPSUM BONUS PAYMENT THAT WAS DISTRIBUTED LAST MONTH PLUS SALARY INCREASES RANGING FROM 5 TO 7 ANNUALLY BUT THE UNION PROTESTED THAT MUCH OF THE MONEY EARMARKED FOR SALARY INCREASES WAS TO BE DISTRIBUTED THROUGH MERITPAY SYSTEMS THAT REWARD ONLY THOSE EMPLOYEES RECOGNIZED BY MANAGEMENT THE UNION WANTS MORE OF THE MONEY PUT INTO GENERAL WAGE INCREASES FOR ALL MEMBERS BETWEEN 55 AND 60 OF ALL BOEING EMPLOYEES REPRESENTED BY THE ASSOCIATION ARE DUESPAYING MEMBERS 9301130004 930113 LEISURE & ARTS OPERA SPAIN RECONQUERS TEXAS WITH SONG BY WILLARD SPIEGELMAN DALLAS SINCE CHRISTOPHER COLUMBUS WAS AN ITALIAN AND SINCE THE WORLD'S MOST POPULAR SPANISH OPERA IS REALLY FRENCH IT IS REFRESHING IN THIS POSTOLYMPICS POSTQUINCENTENNIAL YEAR TO GET A NEW WORLD GLIMPSE OF SOMETHING GENUINELY IBERIAN THROUGH SATURDAY DALLAS OPERA IS STAGING FESTIVAL DE FALLA THREE ONEACTERS PERFORMED TOGETHER ON A SINGLE BILL FOR THE FIRST TIME ANYWHERE THIS LOOKS AND SOUNDS NOTHING LIKE CARMEN FROM THE PARIS OPERA COMIQUE INSTEAD THE AUDIENCE IS TREATED TO THE AUTHENTIC FLAVORS AND COLORS OF SPAIN FILTERED THROUGH THE MUSIC OF ITS MOST VARIOUS 20THCENTURY COMPOSER MANUEL DE FALLA TEXANS TURN TO HOUSTON FOR DARING TO DALLAS FOR COMPETENCE FOR 36 YEARS THE DALLAS OPERA HAS OPERATED AT A STEADY RELIABLE LEVEL BUT HAS SELDOM VENTURED INTO STARTLING INNOVATIVE PROGRAMMING ITS 1980 ORLANDO FURIOSO THE FIRST AMERICAN PRODUCTION OF AN ANTONIO VIVALDI OPERA WAS AN EXCEPTION THE FALLA EVENING DIRECTED BY BLISS HEBERT AND DESIGNED BY ALLEN CHARLES KLEIN MAKES DRAMATIC AND MUSICAL SENSE OF THREE INDIVIDUAL WORKS A PANHISPANIC CAST ADDS AN APPROPRIATE NOTE OF POLITICAL CORRECTNESS ESPECIALLY FOR THE SOUTHWEST THE EVENING BEGINS WITH EL RETABLO DE MAESE PEDRO MASTER PETER'S PUPPET SHOW A CHARMING EPISODE FROM CERVANTES'S DON QUIXOTE MOVES THROUGH THE DARK GYPSY RHYTHMS OF EL AMOR BRUJO BEWITCHED LOVE IN THE AMERICAN PREMIERE OF THE ORIGINAL 1915 VERSION FOR CHAMBER ORCHESTRA RATHER THAN THE MORE FAMILIAR STAGING BASED ON THE CONCERT SUITE AND ENDS WITH THE VERISMO DEATH RITUAL OF LA VIDA BREVE THE BRIEF LIFE THE PRODUCTION WHICH IS UNUSUAL GIVEN THE BASICALLY CONSERVATIVE TASTES OF DALLAS AUDIENCES PUTS ONE IN MIND OF THE FRENCH TRIPLE BILL PARADE WITH SHORT WORKS BY POULENC RAVEL AND SATIE DONE AT THE METROPOLITAN OPERA IN THE MID1980S HERE HOWEVER A NATIONAL TEMPERAMENT WAS EXPRESSED BY A SINGLE COMPOSER EL RETABLO ONE OF FALLA'S LAST TWO COMPLETED WORKS EMBODIES THE LIGHT FANCIFUL ASPECT OF THE SPANISH CHARACTER DON QUIXOTE EXCITED BY THE EVIL SARACENS IN A PUPPET PLAY HE'S WATCHING JUMPS UP TO DEFEND THE PUPPET HEROINE AND LEAVES THE STAGE IN COMPLETE DISARRAY NEWCOMER LUCY TAMEZ CREECH AS THE BOY AN EMCEE OF SORTS AND VETERAN JUSTINO DIAZ AS DON QUIXOTE CONVEY THE BITTERSWEET TENDERNESS OF THE STORY AND ITS MUSICAL SETTING MR DIAZ A GREAT BASSO NOW IN HIS MUSICAL MATURITY BRINGS A TEAR TO THE EYE OURS AS WELL AS HIS OWN IN HIS RENDITION OF THE DON'S TOUCHING MINIARIA O DULCINEA SENORA DE MI ALMA RIGHT BEFORE HIS DESTRUCTION OF THE PUPPET SET WHERE THE DON'S PSYCHOSIS IS FAIRLY BENIGN EL AMOR BRUJO TAKES US DEEPER INTO SPANISH DOOM AND MYSTERY AND IS THE MOST HISTORICALLY INTERESTING OF THE THREE WORKS FALLA CONCEIVED OF THE PIECE AS A ZARZUELA A POPULAR HODGEPODGE THAT OFFERS LESS CONNECTION BETWEEN NUMBERS THAN A STANDARD HIGH OPERA THE MELANGE OF DIALOGUE CHANTING SONG AND DANCE MAKES FOR A RICHER BREW THAN THAT OF THE MORE WELLKNOWN CONCERT SUITE THE DIRECTOR GAVE US A DOUBLE FIGURE OF CANDELAS THE GYPSY GIRL BETRAYED BY HER UNFAITHFUL LOVER MEZZOSOPRANO SUZANNA GUZMAN IS JOINED BY THE GREAT SPANISH FLAMENCO DANCER MARIA BENITEZ WHO STALKS AND STOMPS HER OWN WAY THROUGH THE ROLE ESSENTIALLY MIMING THE SINGER'S VOCAL PLIGHT NEVERTHELESS THE REAL FLAMENCO SHOWSTOPPER IS LA VIDA BREVE WITH MORE DANCERS MORE CLAPPING AND MORE CASTANETS DARKNESS VISIBLE IS THE CENTRAL INGREDIENT OF THE SECOND AND THIRD PARTS OF THE TRILOGY THE BLACKNESS OF MIDNIGHT OF THE GYPSIES' HAIR AND BLOUSES STANDS OUT AGAINST ABSTRACT WHITE RAMPARTS AND LONG WHITE SKIRTS IN EL AMOR BRUJO IN LA VIDA BREVE THE BLACKNESS OF THE FORGE AND OF THE MAJOR SCENIC STRUCTURE AN ABSTRACT CAGE REPRESENTS THE HEROINE'S INEVITABLE DESTRUCTION FRANS HALS COULD HAVE LEARNED A LESSON FROM THESE SETS AND FROM MARIE BARRETT'S LIGHTING MR HEBERT DESERVES MOST OF THE CREDIT FOR THE TRIPLE BILLING DALLAS OPERA WANTED TO COMBINE THE ONEHOUR LA VIDA BREVE WITH SOMETHING ELSE AND NEITHER MAURICE RAVEL'S L'HEURE ESPAGNOLE NOR ENRIQUE GRANADOS'S GOYESCAS SEEMED RIGHT THE TWO CHAMBERSIZED WORKS THAT MR HEBERT DID PICK MIGHT HAVE HEADED STRAIGHT TO DISASTER IN THE CAVERNOUS ACOUSTICALLY UNGRATEFUL MUSIC HALL BUT CONDUCTOR BRUCE FERDEN COAXES THE APPROPRIATE COLORATION AS WELL AS A COMBINATION OF INTIMACY AND PASSION OUT OF HIS ORCHESTRA AND SINGERS ALTHOUGH THE DARK SIDE OF SPAIN NOT THE LIGHT COMMANDS THE BULK OF OUR ATTENTION THE THREE WORKS ALSO SHARE A COMMON DRAMATIC ELEMENT ENTRAPMENT IS THE KEY THE OFFSTAGE CHORAL LEITMOTIF OF LA VIDA BREVE IT IS UNLUCKY TO BE THE ANVIL INSTEAD OF THE HAMMER SPEAKS FOR THE GRIP OF INEVITABILITY THAT OVERWHELMS THE CHARACTERS IN ALL THREE OPERAS THE DON CAN NO MORE ESCAPE THE WORKINGS OF HIS FEVERED IMAGINATION THAN THE LOVERS IN THE TWO TRAGIC WORKS CAN AVOID THE MORE COMMON OPERATIC FATE OF SEXUAL JEALOUSY BETRAYAL OR DEATH THE EVENING PRODUCES WHAT SO FEW OPERA PRODUCTIONS DO ESPECIALLY IN THESE DAYS OF RADICAL RABID OR ILLCONCEIVED EXPERIMENTATION A TOTAL COMBINATION OF MUSIC SINGING DANCE DIALOGUE AND VISUAL DETAIL ONE HAS THE SENSE THAT THE CHOREOGRAPHY IS ENACTING NOT MERELY SUPPLEMENTING THE DRAMA AT HAND COMPARED WITH THE BANALITY OF MOST OPERA BALLET MS BENITEZ'S CONTRIBUTIONS AS CHOREOGRAPHER AND PERFORMER DEEPEN AN AUDIENCE'S UNDERSTANDING OF TWO OF THESE WORKS AND ALSO CHALLENGE THE PERFORMERS' SUREFOOTEDNESS THE 10 DANCERS IN LA VIDA BREVE PERFORM ON A PRECIPITOUSLY HIGH CIRCULAR RAMP NO SMALL CHORE MR SPIEGELMAN IS EDITOR OF THE SOUTHWEST REVIEW IN DALLAS 9301130003 930113 BUSINESS BRIEF TEREX CORP FIRM SAYS INTEREST EXPRESSED ABOUT PURCHASE OF FRUEHAUF TEREX CORP GREEN BAY WIS SAID IT AND FRUEHAUF TRAILER CORP RECEIVED EXPRESSIONS OF INTEREST ABOUT A POSSIBLE PURCHASE OF FRUEHAUF'S BUSINESS TEREX OWNS A 42 FRUEHAUF STAKE AND RETAINS MAJORITY VOTING CONTROL OF THE TRUCKTRAILER MAKER A SPOKESMAN SAID TEREX A HEAVYEQUIPMENT MAKER SAID PAINEWEBBER INC HAS BEEN RETAINED AS A FINANCIAL ADVISER TO HELP EXPLORE OPPORTUNITIES FOR MAXIMIZING FRUEHAUF'S SHAREHOLDER VALUE THE COMPANY DECLINED TO IDENTIFY WHO HAD MADE THE OVERTURES LATE LAST YEAR FRUEHAUF DISCLOSED A THIRDQUARTER LOSS OF 194 MILLION OR 160 A SHARE ON SALES THAT DIPPED 71 TO 1291 MILLION THE RESULTS INCLUDED A 155 MILLION CHARGE TO COVER THE WRITEDOWN OF CERTAIN REAL ESTATE HOLDINGS AND ADDITIONAL RESERVES TO COVER LARGERTHANANTICIPATED RESTRUCTURING COSTS THE CHARGE PUSHED FRUEHAUF INTO TECHNICAL DEFAULT WITH ITS BANK LENDERS BUT THOSE LENDERS HAVE SINCE ISSUED WAIVERS A SPOKESMAN SAID 9301130002 930113 LAW LEGAL BEAT STRING OF RULINGS OPEN HOSPITALS TO MORE LIABILITY FOR MALPRACTICE BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL HOSPITALS SHIELD YOUR ASSETS THAT'S THE ADVICE OF SOME LAWYERS IN THE WAKE OF COURT DECISIONS HOLDING HOSPITALS LIABLE FOR DOCTORS' MISTAKES A STRING OF COURT RULINGS IN MORE THAN 20 STATES HAS OPENED HOSPITALS TO GREATER LIABILITY FOR MALPRACTICE BY DOCTORS ON THEIR STAFFS TO THWART MALPRACTICE CLAIMS HOSPITALS ALSO SHOULD STEP UP SCREENING OF PHYSICIANS SEEKING TO JOIN THEIR STAFFS AND MORE CLOSELY MONITOR THE DOCTORS' PERFORMANCE ONCE THEY ARE ON BOARD THE LAWYERS SAY THERE'S A GREATER RECOGNITION THAT COURTS WILL FIND WAYS TO MAKE HOSPITALS RESPONSIBLE FOR THE ACTS OF PHYSICIANS SAYS FREDRIC ENTIN SENIOR VICE PRESIDENT AND GENERAL COUNSEL FOR THE AMERICAN HOSPITAL ASSOCIATION AN INDUSTRY GROUP TYPICALLY COMPANIES CAN BE HELD LIABLE FOR THEIR EMPLOYEES' NEGLIGENT JOBRELATED ACTS BUT COURTS HISTORICALLY HAVE HANDLED HOSPITALS AND DOCTORS DIFFERENTLY EXCEPT FOR PHYSICIANS SUCH AS ANESTHESIOLGISTS AND RADIOLOGISTS WHO WORK ALMOST EXCLUSIVELY FOR ONE HOSPITAL DOCTORS WERE TREATED AS INDEPENDENT PRACTITIONERS WHO SIMPLY USED HOSPITALS AS A PLACE TO DO THEIR WORK IF A DOCTOR MESSED UP THE DOCTOR AND NOT THE HOSPITAL BORE THE BLAME COURT DECISIONS HAVE SHIFTED IN RECENT YEARS HOWEVER MOST OF THE CASES DON'T SUGGEST THAT THE HOSPITALS DID ANYTHING TO CAUSE THE NEGLIGENCE ONLY THAT THEY DIDN'T DO ENOUGH TO PREVENT IT EVEN SO HOSPITALS WITH HIGHER INSURANCE LIMITS AND DEEPER POCKETS THAN MOST DOCTORS OFTEN ARE BEING REQUIRED TO PAY THE BULK OF ANY DAMAGES AWARDED AS A RESULT LAWYERS ARE RECOMMENDING THAT HOSPITALS SHELTER SOME ASSETS PARTICULARLY THEIR ENDOWMENTS BY PUTTING THEM IN SEPARATE CORPORATIONS THAT WILL BE HARDER FOR MALPRACTICE PLAINTIFFS TO REACH VERY OFTEN A HOSPITAL CORPORATION ISN'T STRUCTURED IN SUCH A WAY THAT BIG ASSETS AREN'T AT RISK SAYS KERRY KEARNEY A LAWYER WHO REPRESENTS HOSPITALS AT THE FIRM REED SMITH SHAW & MCCLAY IN PITTSBURGH MADELEINE ESTABROOK A HEALTHLAW SPECIALIST WITH THE BOSTON LAW FIRM LANE & ALTMAN SAYS AT LEAST SIX OF HER HOSPITAL CLIENTS ARE NOW RESTRUCTURED IN A WAY THAT ENABLES THEM TO SHIFT THEIR ASSETS INTO NEW CORPORATIONS THAT DON'T HAVE A DIRECT CONNECTION WITH THE HOSPITAL'S PHYSICIANS ALL OF HER HEALTHFACILITY CLIENTS ARE REVIEWING THEIR ASSETS' EXPOSURE TO LIABILITY AS WELL AS INSURANCE RESERVES AND POLICIES ABOUT HIRING AND SUPERVISING STAFF PARTLY BECAUSE OF MALPRACTICE CONCERNS SHE SAYS MANY COMPANIES SET UP DISTINCT DIVISIONS AND UMBRELLALIKE PARENT CORPORATIONS IN PART TO SHIELD ASSETS FROM LAWSUIT JUDGMENTS BUT SOME HEALTH SPECIALISTS FIND THAT PRACTICE ODIOUS IN AN INDUSTRY SUPPOSEDLY DEVOTED TO PATIENTS' WELLBEING IT'S NOT EXACTLY WHERE YOU WANT THEIR FIRST CONCERN TO BE SAYS FRAN MILLER A LAW PROFESSOR AT BOSTON UNIVERSITY MS KEARNEY CONTENDS SHELTERING ASSETS MAY BE JUSTIFIED BECAUSE JURY AWARDS IN THESE CASES ARE ALMOST ALWAYS MORE THE RESULT OF COMPASSION AND CONCERN FOR AN INJURED PERSON THAN THE REAL NEED TO COMPENSATE FOR THE PERSON'S INJURY AND IN MANY CASES SHE ADDS THE HOSPITAL IS TWO STEPS REMOVED FROM THE CONDUCT OF THE PHYSICIAN WHO CAUSED THE INJURY INDEED SOME CASES APPEAR TO BE FINDING THAT HOSPITALS AND THEIR EMPLOYEES HAVE A DUTY TO MONITOR DOCTORS' DECISIONS ABOUT TREATMENTS A 1991 PENNSYLVANIA SUPREME COURT OPINION RULED THAT A HOSPITAL COULD BE LIABLE IN A CASE WHERE THE PLAINTIFF ALLEGED SHE BECAME PARALYZED AFTER A DOCTOR FAILED TO PROPERLY MONITOR HER HEARTDISEASE THERAPY NURSES AND OTHER HOSPITAL EMPLOYEES THE COURT SAID HAVE A DUTY TO QUESTION A PHYSICIAN'S ORDER WHICH IS NOT IN ACCORD WITH STANDARD MEDICAL PRACTICE IN RESPONSE TO SUCH CASES MANY HOSPITALS HAVE ASSUMED A MORE VIGILANT STANCE IN REVIEWING THE ACTS OF PHYSICIANS HIRING FULLTIME PHYSICIAN OVERSEERS FOR INSTANCE AND REQUIRING CLINICAL DEPARTMENTS TO DEVELOP QUALITYASSURANCE PLANS THEY ALSO ARE REQUIRING MORE INFORMATION ABOUT ANY PREVIOUS CLAIMS AGAINST PHYSICIANS WHO APPLY TO PRACTICE AT THE FACILITIES WHATEVER INFORMATION A PHYSICIAN PUTS ON HIS OWN APPLICATION IS NOT JUST ACCEPTED ANY LONGER SAYS MR ENTIN OF THE HOSPITAL ASSOCIATION PROTECTING ASSETS MAY BE EVEN MORE OF A CONCERN AT HOSPITALS THAT INSURE THEMSELVES AND THUS PAY CLAIMS AGAINST THEM RATHER THAN BUYING COVERAGE FROM AN INSURANCE COMPANY THAT GIVES THE HOSPITALS A DIRECT FINANCIAL INCENTIVE TO CURB THEIR LIABILITY IN ADDITION TO THE SATISFACTION OF JUST KNOWING YOU DID THINGS WELL SAYS ROBERT JOHNSON VICE PRESIDENT AND GENERAL COUNSEL OF SAN FRANCISCOBASED CATHOLIC HEALTHCARE WEST WHICH LIKE MOST LARGE HOSPITAL SYSTEMS IS SELFINSURED EACH OF CATHOLIC HEALTHCARE'S 15 HOSPITALS HAS SET UP A COMMITTEE OF BOARD MEMBERS HOSPITAL EMPLOYEES AND PHYSICIANS TO REVIEW MALPRACTICE SUITS INVOLVING THE HOSPITAL TO DETERMINE WHETHER THERE ARE PATTERNS OF PROBLEMS THAT NEED TO BE CORRECTED IN ADDITION HOSPITAL EMPLOYEES HAVE BEEN TRAINED TO SCREEN PATIENTS' CHARTS FOR RED FLAGS SUCH AS A RETURN TO SURGERY WITHIN 24 OR 48 HOURS AFTER A FIRST OPERATION THAT MAY SIGNAL ERRORS IN TREATMENT ALL THIS AGGRESSIVE HOSPITAL OVERSIGHT MAY MAKE DOCTORS RESIST SQUEAL AND SQUIRM AND SAY MEDICINE IS MORE AN ART THAN A SCIENCE SAYS PROF MILLER BUT AT A HOSPITAL SHE ARGUES THE MORE PEOPLE LOOKING THE BETTER IT'S A SCARY PLACE MERRILL LYNCH & CO STEPPED UP ITS BATTLE WITH THE INTERNAL REVENUE SERVICE OVER WHETHER IT CAN BE FORCED TO IDENTIFY CORPORATE CLIENTS THAT PARTICIPATED IN A CONTROVERSIAL TAX SHELTER PROMOTED BY THE COMPANY AT A HEARING IN FEDERAL COURT IN NEW YORK MERRILL ACCUSED THE INTERNAL REVENUE SERVICE OF USING AN INVESTIGATION OF THE FIRM'S TAX LIABILITY AS A PRETEXT TO GET THE NAMES OF THE CLIENTS MERRILL CLAIMS THAT ITS RELATIONSHIPS WITH ITS CLIENTS ARE CONFIDENTIAL AND THAT THE IRS COULD GET THE INFORMATION IT WANTS WITHOUT MAKING THE BROKERAGE FIRM INFORM ON ITS CUSTOMERS MERRILL HAS REFUSED TO COMPLY WITH AN IRS SUMMONS DEMANDING THE NAMES OF CORPORATIONS THAT PARTICIPATED IN THE TAX SHELTERS FROM 1988 THROUGH 1990 THE CORPORATIONS DESCRIBED AS AMONG THE LARGEST IN THE COUNTRY SAVED HUNDREDS OF MILLIONS OF DOLLARS BY INVESTING IN THE TAXSHELTER PARTNERSHIPS MERRILL CLAIMS THE IRS REQUESTS HAVE BEEN TOO FOCUSED ON GETTING INFORMATION ABOUT THE TAXSHELTER DEALS TO BE PART OF AN INVESTIGATION OF THE FIRM'S TAX LIABILITY IF THEY'RE REALLY INTERESTED IN US AUDIT US SAID STUART J BASKIN AN ATTORNEY FOR MERRILL AT THE HEARING MR BASKIN OF THE LAW FIRM SHEARMAN & STERLING TOLD JUDGE CHARLES S HAIGHT THAT IT WOULD BE DANGEROUS TO ALLOW THE IRS TO GET CLIENTS' NAMES SIMPLY BY STARTING WHAT HE CALLED A TRIVIAL INVESTIGATION OF THE COMPANY BUT MR BASKIN SAID MERRILL WOULD PROVIDE THE NAMES IF THE IRS WERE ABLE TO PROVE THAT IT DESERVED A SPECIAL COURT ORDER TO THAT EFFECT THE IRS SAYS THAT THE SUMMONS IS PART OF AN INVESTIGATION OF MERRILL THE AGENCY SAYS THAT SINCE IT NEEDS THE CLIENT INFORMATION TO CONFIRM MERRILL'S OWN TAX LIABILITY IT DOESN'T NEED TO APPLY FOR A SPECIAL COURT ORDER WHICH GENERALLY IS MORE DIFFICULT TO WIN THAN AN ORDINARY SUMMONS ASSISTANT US ATTORNEY JUDITH MOGUL SAID IN COURT PAPERS THAT MERRILL IS ATTEMPTING TO HIDE BEHIND ITS CLIENTS' CONFIDENTIALITY NEW DETAILS ABOUT THE TAX SHELTERS ALSO EMERGED IN COURT PAPERS AND AT THE HEARING MERRILL SAID A TOTAL OF EIGHT PARTNERSHIPS WERE INVOLVED AND THE FIRM RECEIVED FEES RANGING FROM 1000 TO 7 MILLION FOR ARRANGING THE TAX SHELTERS AT LEAST ONE OF THE PARTNERSHIPS INVOLVED THE SALE OF 200 MILLION OF FIXEDINCOME SECURITIES MERRILL PARTICIPATED IN ONLY ONE OF THE TAX SHELTERS AS A PARTNER MERRILL MAINTAINS THAT IT FACES NO ADDITIONAL TAX LIABILITY FOR PARTICIPATING IN THE PARTNERSHIP BECAUSE IT RECEIVED NONE OF THE TAX WRITEOFF FROM THE TRANSACTION WHO'S NEWS EDWARD F FEIGHAN FORMER US CONGRESSMAN FOR OHIO WILL JOIN THE CLEVELANDBASED LAW FIRM CLIMACO CLIMACO SEMINATORE LEFKOWITZ & GAROFOLI MR FEIGHAN WHO DIDN'T SEEK REELECTION LAST YEAR HAD BEEN A MEMBER OF CONGRESS SINCE 1982 PAUL W SCHMIDT FORMER ACTING GENERAL COUNSEL OF THE US IMMIGRATION AND NATURALIZATION SERVICE HAS JOINED AS A PARTNER IN THE WASHINGTON DC OFFICE OF THE LAW FIRM FRAGOMEN DEL REY & BERNSEN JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9301130001 930113 ENTERPRISE COMMUNITYLOAN FUNDS BRIDGE INNERCITY CAPITAL GAP SPURNED BY BANKS A PHILADELPHIA LAUNDERETTE GETS A 100000 LIFELINE BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA A BUSINESS CALLED LA LAVANDERIA DEL PUEBLO OPENED LAST MONTH AMID THE URBAN BLIGHT OF NORTH PHILADELPHIA CONSIDERING THE POMP AND FESTIVITIES IT'S HARD TO BELIEVE THAT THE NEW VENTURE IS SIMPLY A LAUNDERETTE YET THE LAUNDERETTE ALMOST DIDN'T OPEN AFTER RAISING 40000 IN STARTUP MONEY ITS OWNERS COULDN'T FIND THE ADDITIONAL 100000 NEEDED TO BEGIN CONSTRUCTION NO BANK WOULD FINANCE THE VENTURE A BID FOR A 50000 CITY GRANT WAS STUCK IN GOVERNMENT BUREAUCRACY FEDERAL AND CITY AGENCIES HAD AGREED TO LEND 250000 BUT ONLY AFTER THE LAUNDERETTE WAS UP AND RUNNING THE PROJECT WAS AT A STANDSTILL RECALLS THE REV LUIS CORTES JR EXECUTIVE DIRECTOR OF NUEVA ESPERANZA A COMMUNITY DEVELOPMENT CORPORATION FOUNDED BY THE CITY'S HISPANIC CLERGY THAT PLANNED THE LAUNDERETTE WITH LOCAL BLACK ENTREPRENEUR DAVID FLEMING FINALLY THE NONPROFIT DELAWARE VALLEY COMMUNITY REINVESTMENT FUND RESCUED THE FLEDGLING ENTERPRISE BY AGREEING TO PROVIDE A 100000 LOAN AT 7 INTEREST THE LOAN WAS JUST WHAT WE NEEDED TO GET GOING THE REV CORTES SAYS ALL OVER THE NATION COMMUNITY DEVELOPMENT LOAN FUNDS SUCH AS DELAWARE VALLEY ARE BRIDGING A CRITICAL CAPITAL GAP FOR INNERCITY BUSINESSES THESE FUNDS PROVIDE RISKY STARTUP CAPITAL AND BADLY NEEDED TECHNICAL ASSISTANCE FOR MANY ENTREPRENEURS THE FUNDS ARE EMERGING AS THE NEW BANKERS OF URBAN DEVELOPMENT IN AREAS WHERE TRADITIONAL BANK LOANS HAVE SHRUNK AND GOVERNMENT MONEY HAS BOGGED DOWN IN RED TAPE COMMUNITY DEVELOPMENT LOAN FUNDS ALSO ARE GETTING A BIG BOOST FROM BILL CLINTON'S ELECTION THE PRESIDENTELECT'S PLAN TO CREATE 100 FORPROFIT COMMUNITY DEVELOPMENT BANKS IS PUTTING INCREASED FOCUS ON LOAN FUNDS SAYS MARTIN TRIMBLE EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF COMMUNITY DEVELOPMENT LOAN FUNDS A GROUP REPRESENTING 42 OF THE NONPROFIT FUNDS WHICH UNLIKE COMMUNITY DEVELOPMENT BANKS AREN'T GOVERNMENT REGULATED MORE CORPORATIONS ARE BACKING THE IDEA TOO THIS WEEK CITICORP'S CITIBANK UNIT WILL ANNOUNCE A 11 MILLION GRANT TO HELP THE ASSOCIATION LAUNCH ITS 25 MILLION EQUITY GRANTS PROGRAM ACCORDING TO MR TRIMBLE PRUDENTIAL INSURANCE CO METROPOLITAN LIFE INSURANCE CO CORESTATES BANK AND OTHER CONCERNS ALREADY HAVE INVESTED MORE THAN 10 MILLION IN INDIVIDUAL FUNDS SINCE 1987 YET COMMUNITY DEVELOPMENT LOAN FUNDS MANAGE A RELATIVELY TINY SUM OF ASSETS THE ASSOCIATION SAYS THAT MEMBERS HAVE 90 MILLION IN CAPITAL MAINLY PROVIDED BY INDIVIDUALS FOUNDATIONS AND RELIGIOUS GROUPS BUT FUNDS HAVE LENT 106 MILLION IN THE LAST SIX YEARS AND MADE AVAILABLE 760 MILLION IN PUBLIC AND PRIVATE CAPITAL FOR INNERCITY HOUSING AND BUSINESSES BY AGREEING TO HANDLE THE RISKIEST PORTION OF LOANS MANY FUNDS INITIALLY CONCENTRATED ON MAKING LOANS FOR HOUSING PROJECTS IN URBAN AND RURAL AREAS IN RECENT YEARS HOWEVER FUNDS HAVE BEEN LENDING MORE TO BUSINESS STARTUPS IN THE INNER CITY THEY ALSO HAVE SURPRISINGLY LOW LOAN LOSSES LESS THAN 1 OF ALL LOANS SAYS THE TRADE GROUP THE FUNDS SAY THEY TRY TO KEEP DEFAULT RATES LOW BY WORKING CLOSELY WITH BORROWERS TO DEVELOP BUSINESS PLANS AND WITH THEIR BUSINESSES NUEVA ESPERANZA THE HISPANIC COMMUNITY DEVELOPMENT GROUP DECIDED TO DEVELOP A LAUNDERETTE IN A RUNDOWN NEIGHBORHOOD AFTER POLLING RESIDENTS IN 1988 THE CLOSEST LAUNDERETTE WAS 15 BLOCKS AWAY IN PHILADELPHIA'S GERMANTOWN SECTION DELAWARE VALLEY PROVIDED BRIDGE FUNDS TO FREEDOM SQUARE ASSOCIATES TO BUILD A MUCHNEEDED SHOPPING CENTER LAST YEAR FREEDOM SQUARE A HOUSING DEVELOPER HAD RECEIVED A 26 MILLION COMMITMENT FROM FEDERAL AGENCIES AND A LOCAL BANK BUT BECAUSE THE FEDERAL FUNDS ARE PAID OUT SLOWLY THE PROJECT REQUIRED 330000 IN INTERIM FINANCING OTHER LOCAL LENDERS WERE UNABLE TO HELP SAYS HERBERT WETZEL A FREEDOM SQUARE PARTNER DELAWARE VALLEY STEPPED IN WITH A 160000 SHORTTERM LOAN CONSTRUCTION BEGAN LAST MAY AND THE SHOPPING CENTER IS SET TO OPEN MARCH 1 THE MONEY WE'RE PROVIDING ISN'T A LOT BUT IT IS A CATALYST SAYS JEREMY NOWAK DELAWARE VALLEY'S EXECUTIVE DIRECTOR THOUGH THESE LOANS LOOK RISKY TO CONVENTIONAL LENDERS MR NOWAK CONTINUES YOU CAN MITIGATE THE RISK WITH CAREFUL UNDERWRITING TECHNICAL ASSISTANCE AND CONSTANT LOAN SERVICING IN ITS SEVEN YEARS DELAWARE VALLEY SAYS THAT IT HASN'T HAD A SINGLE BUSINESS BORROWER DEFAULT OTHER COMMUNITY DEVELOPMENT LOAN FUNDS REPORT SIMILARLY LOW DEFAULT RATES SEATTLE'S CASCADIA REVOLVING FUND SAYS THAT ALL BUT 1400 OF THE 14 MILLION IT HAS LENT TO BUSINESSES SINCE 1987 HAS BEEN PAID BACK BECAUSE IT IS A NONPROFIT VENTURE IT CAN AFFORD TO PROVIDE LOANS AT NO MORE THAN THREE TO FOUR POINTS ABOVE THE PRIME RATE SAYS PATTY GROSSMAN EXECUTIVE DIRECTOR CASCADIA ALSO ATTRACTS A HIGHTICKET PRO BONO EFFORT SAYS MS GROSSMAN ABOUT TWO DOZEN VOLUNTEERS MOSTLY LAWYERS AND ACCOUNTANTS WORK CLOSELY WITH THE FUND AND ITS BORROWERS TO MONITOR POTENTIAL PROBLEMS CASCADIA REQUIRES BORROWERS TO SUBMIT FINANCIAL STATEMENTS EVERY MONTH VIETNAMESEBORN CINDY LE BORROWED 30000 FROM CASCADIA TO START HOUSE OF EGG ROLLS AN EGGROLL MANUFACTURING BUSINESS IN 1991 WHEN SHE FELL BEHIND ON HER MONTHLY STATEMENTS EARLY LAST YEAR CASCADIA OFFICIALS QUICKLY INTERVENED SHE DIDN'T HAVE ENOUGH CONTROL OVER THE FINANCES SAYS MS GROSSMAN THE EXECUTIVE DIRECTOR SHE AND OTHER CASCADIA STAFF MEMBERS SPENT MORE THAN 100 HOURS HELPING MS LE TO DEVELOP A CASHMANAGEMENT PROGRAM THE FUND ALSO FOUND HER A BOOKKEEPER AND INTRODUCED HER TO OTHER POTENTIAL INVESTORS MS LE'S COMPANY WHICH HAD SALES OF ABOUT 3000 IN MAY 1991 SOLD MORE THAN 65000 OF EGG ROLLS LAST MONTH 9301120171 930112 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 15/16 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 313 30 TO 89 DAYS 317 90 TO 119 DAYS 322 120 TO 149 DAYS 325 150 TO 179 DAYS 330 180 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 326 30 DAYS 327 60 DAYS 330 90 DAYS CERTIFICATES OF DEPOSIT 278 ONE MONTH 282 TWO MONTHS 286 THREE MONTHS 297 SIX MONTHS 318 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 325 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 312 60 DAYS 315 90 DAYS 321 120 DAYS 324 150 DAYS 326 180 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 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 725 GERMANY 11 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 786 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 784 60 DAYS 793 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 9301120170 930112 TECHNOLOGY NINTENDO SEGA GEAR UP TO BATTLE OVER VIDEO GAME MARKET SHARE BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL WITH THE CHRISTMAS TREE BARELY OUT THE DOOR THE NATION'S TWO LARGE VIDEO GAME MAKERS ARE SLUGGING IT OUT OVER WHO WILL DOMINATE THE NEXT HOLIDAY MARKET NINTENDO OF AMERICA INC SAID IT EXPECTS A FLURRY OF NEW TITLES FOR ITS SUPER NES VIDEO GAME CARTRIDGE SYSTEM WILL OFFSET COMPETITION FROM COMPACT DISKBASED COMPETITORS DRIVING COMPANY SALES UP BY 19 IN THE YEAR ENDING MARCH 31 1994 COMPARED WITH CALENDAR YEAR 1992 NINTENDO SWITCHED LAST WEEK TO A FISCAL YEAR AND HASN'T YET RESTATED PRIOR YEARS BUT IT SAYS THE SALES GROWTH PROJECTION ISN'T SKEWED BY THE CHANGE THE REDMOND WASH GAME MAKER A UNIT OF JAPANESEOWNED NINTENDO LTD PLANS TO RELEASE AS MANY AS 75 NEW TITLES FOR ITS 16BIT VIDEO GAME PLATFORM DURING THE FIRST HALF OF 1993 IT IS HOPING THAT DEMAND FOR THE NEW GAMES AND A SOUPEDUP SUPER FX CHIP IT UNVEILED AT LAST WEEK'S CONSUMER ELECTRONICS SHOW IN LAS VEGAS WILL BOOST SUPER NES SALES BY NEARLY 50 FOR THE YEAR ENDING MARCH 31 1994 NINTENDO EXPECTS TO REPORT IT SOLD 66 MILLION SUPER NES HARDWARE UNITS IN 1992 COMPANY OFFICIALS SAID THEY COULDN'T PROVIDE COMPARABLE FIGURES BUT SAID THE SHIFT TO A FISCAL YEAR DOESN'T SIGNIFICANTLY DISTORT THE PROJECTED SALES INCREASES WE BELIEVE THIS WILL BE A CARTRIDGEBASED YEAR SAID PETER MAIN NINTENDO'S VICE PRESIDENT FOR MARKETING IN TELEPHONE INTERVIEWS NINTENDO OFFICIALS TOOK SWIPES AT BOTH THE CDBASED VIDEO GAME SYSTEM BEING OFFERED BY NINTENDO'S CHIEF RIVAL SEGA OF AMERICA INC AND THE NEW 32BIT CDBASED GAME UNIT PLANNED BY 3DO CO OF SAN MATEO CALIF WHAT PLAYERS WANT IS SEAMLESS INTERACTION IN A GAME AND UNFORTUNATELY CDROM TODAY USING A 16BIT PROCESSOR LIKE SEGA'S IS SO SLOW IT CAN'T DELIVER GAMES PLAYERS FIND ACCEPTABLE SAID WILLIAM WHITE NINTENDO'S MARKETING DIRECTOR MR WHITE SAID SEGA'S CDBASED UNIT HASN'T ENOUGH RANDOM ACCESS MEMORY TO SUPPORT ITS SOFTWARE AND MUST PAUSE SEVERAL SECONDS TO PULL UP DATA FROM DEEPER MEMORY LEVELS TO A GAME PLAYER THOSE SECONDS ARE LIKE HOURS HE SAID NINTENDO DOMINATES THE 53 BILLION US VIDEO GAME MARKET WITH 80 OF INDUSTRY REVENUE BUT SOME INDUSTRY EXPERTS BELIEVE NINTENDO MISSED A BEAT WHEN SEGA INTRODUCED ITS COMPACT DISK DRIVE SYSTEM LAST YEAR SEGA'S 300 CDBASED SYSTEM WHICH HAS MORE THAN 100 TIMES THE STORAGE CAPACITY OF THE SUPER NES CARTRIDGE SYSTEM WAS A STRONG SELLER DURING THE CHRISTMAS SEASON THE REDWOOD CITY CALIF COMPANY EXPECTS TO SELL AS MANY AS SIX MILLION UNITS OF THE 16BIT HARDWARE IN 1993 SEGA OFFICIALS DISPUTED NINTENDO'S 16BIT SALES PROJECTIONS SAYING THEY EXPECTED THEIR OWN 16BIT CDBASED SYSTEM WILL OUTSELL SUPER NES IN 1993 THEY PREDICTED SALES OF ABOUT SIX MILLION HARDWARE UNITS TO SUPER NES SALES OF ABOUT FIVE MILLION UNITS SEGA EXPECTS TO REPORT DOMESTIC RETAIL SALES OF 328 BILLION FOR ITS YEAR ENDING MARCH 31 1994 RICHARD BURNS SEGA'S SALES VICE PRESIDENT SAID THE COMPANY SHOULD REPORT 18 BILLION IN SALES FOR FISCAL 1993 SEGA HAD SALES OF 800 MILLION FOR FISCAL 1992 SEGA IS ALSO PLANNING TO COUNTER NINTENDO'S NEW GAME SOFTWARE WITH A POTENTIAL BLOCKBUSTER A VIRTUAL REALITY ADDON TO ITS GENESIS VIDEOGAME PLATFORM EDWARD VOLKWEIN SEGA'S SENIOR VICE PRESIDENT FOR MARKETING SAID IN AN INTERVIEW FRIDAY THAT SEGA WHICH IS OWNED BY THE JAPANESE GIANT SEGA ENTERPRISES LTD PLANS TO MARKET THE VIRTUAL REALITY HELMETSTYLE DEVICE IN TIME FOR NEXT CHRISTMAS THE VIRTUAL REALITY APPARATUS WILL PLUG INTO SEGA'S GENESIS HARDWARE MR VOLKWEIN SAID SEGA HASN'T SET A RETAIL PRICE FOR THE VIRTUAL REALITY GAME BUT MR VOLKWEIN SAID HE EXPECTED IT TO COST LESS THAN 200 THAT ALONE WE BELIEVE WILL DRIVE TREMENDOUS SALES OF OUR 16BIT MACHINE AND WILL FAR EXCEED ANY SOFTWARE OR CARD ENHANCEMENT IN EITHER NINTENDO'S OR OUR OWN MACHINE MR VOLKWEIN SAID MR MAIN SAID NINTENDO EXPECTS TO UNVEIL SPECIFICATIONS FOR ITS OWN CDBASED GAME SYSTEM TO DEVELOPERS NEXT MONTH HE SAID THE SYSTEM WOULD HAVE A 32BIT PROCESSOR THAT WILL RUN OFF THE SUPER NES SYSTEM SUCH A SYSTEM WOULD GIVE NINTENDO A LEGUP ON ITS COMPETITORS WITH A PLATFORM OFFERING MORE POWER AT LESS PRICE BUT INDUSTRY ANALYSTS ARE WARY SINCE NINTENDO HAS HAD SEVERAL FALSE STARTS ON THE PROJECT MR MAIN SAID THAT THE 32BIT SYSTEM ISN'T LIKELY TO REACH THE MARKET UNTIL NEXT YEAR NINTENDO SAID CALENDAR 1992 SALES OF ITS 8BIT NES SYSTEM PORTABLE GAME BOY SYSTEM AND SUPER NES TOTALED 133 MILLION HARDWARE UNITS AND 76 MILLION SOFTWARE UNITS THAT REPRESENTED A 22 INCREASE IN TOTAL REVENUE FROM 1991 GAME BOY REVENUE WAS 935 MILLION REPRESENTING 82 OF THE HANDHELD GAME MARKET NES NINTENDO'S ORIGINAL VIDEO GAME SYSTEM HAD CALENDAR 1992 REVENUE OF 123 BILLION REPRESENTING 99 OF THE 8BIT MARKET BUT MR MAIN SAID THE COMPANY EXPECTS 1993 SALES OF THE NES AND GAME BOY SYSTEMS TO BE FLAT WITH ONLY SUPER NES SHOWING A STRONG SALES INCREASE STILL HE SAID THE NES AND GAME BOY SYSTEMS SHOULD CONTRIBUTE ABOUT 40 OF NINTENDO'S TOTAL ANTICIPATED REVENUE BOTH NINTENDO AND SEGA SHRUGGED OFF 3DO'S CDROM UNIT WHICH WAS UNVEILED WITH MUCH FANFARE LAST WEEK AT THE LAS VEGAS GATHERING THE STANDALONE UNIT PRICED AT ABOUT 700 WILL PLUG INTO A TELEVISION MONITOR AND IS EXPECTED TO PROVIDE BETTER SPEED COLOR AND GRAPHICS FOR VIDEO GAMES THAN EITHER SEGA OR NINTENDO'S 16BIT PLATFORMS BUT NINTENDO'S MR MAIN SAID 3DO'S UNIT IS TOO EXPENSIVE TO COMPETE IN THE CURRENT VIDEO GAME MARKETPLACE THIS BUSINESS IS STILL PRIMARILY A YOUTH BUSINESS HE SAID ABOUT HALF NINTENDO'S CUSTOMERS ARE UNDER 15 AND THEY ACCOUNT FOR 70 OF THE SOFTWARE GAME SALES 9301120169 930112 NORTHERN TELECOM FORMS A PARTNERSHIP WITH BELL ATLANTIC TORONTO NORTHERN TELECOM LTD AND BELL ATLANTIC CORP SAID THEY FORMED A PARTNERSHIP TO SELL AND SERVICE PRIVATE TELECOMMUNICATIONS SYSTEMS MAINLY IN THE MIDATLANTIC REGION TORONTOBASED NORTHERN TELECOM SAID ITS US ARM NORTHERN TELECOM INC WILL HAVE A MAJORITY INTEREST AND A MANAGING ROLE IN THE PARTNERSHIP ADDITIONAL TERMS WEREN'T DISCLOSED THE PARTNERSHIP BELL ATLANTIC MERIDIAN SYSTEMS PRINCETON NJ ACQUIRED MOST OF THE ASSETS OF BELL ATLANTICOM SYSTEMS INC A SUBSIDIARY OF PHILADELPHIABASED BELL ATLANTIC BELL ATLANTIC MERIDIAN SYSTEMS WILL SELL AND SERVICE NORTHERN TELECOM'S PRIVATE BRANCH EXCHANGE SYSTEMS AND MERIDIAN NORSTAR KEY SYSTEMS AS WELL AS OTHER PRODUCTS THE MARKET FOR PRIVATE EXCHANGE SYSTEMS RANGES FROM SMALL BUSINESSES TO LARGE CORPORATIONS THAT NEED THEIR OWN INTERNAL PHONE SYSTEMS SUCH SYSTEMS COST ANYWHERE FROM A COUPLE OF THOUSAND DOLLARS TO OVER A MILLION DOLLARS A NORTHERN TELECOM SPOKESMAN SAID THE SPOKESMAN SAID THE US MARKET FOR PRIVATE EXCHANGES HAD BEEN ESTIMATED AT BETWEEN 4 BILLION AND 5 BILLION BELL ATLANTIC MERIDIAN SYSTEMS WOULD PRIMARILY COMPETE WITH AMERICAN TELEPHONE & TELEGRAPH CO AND ROLM A UNIT OF SIEMENS AG GERMANY HE ADDED OVER 800 BELL ATLANTICOM EMPLOYEES WILL JOIN BELL ATLANTIC MERIDIAN SYSTEMS THE COMPANIES SAID NORTHERN TELECOM A SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT HAS SIMILAR AGREEMENTS TO MARKET PRIVATE EXCHANGES WITH NYNEX CORP AND PACIFIC TELESIS GROUP JOHN T LOSIER WAS NAMED PRESIDENT OF THE PARTNERSHIP HE WAS PREVIOUSLY VICE PRESIDENT MARKETING PRIVATE NETWORKS NORTHERN TELECOM ALSO JOSEPH M O'HARA JR WAS NAMED VICE PRESIDENT OPERATIONS HE WAS PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OFFICER BELL ATLANTICOM 9301120168 930112 WHO'S NEWS SUNRISE LEASING CORP SUNRISE LEASING CORP BROOKLYN CENTER MINN THOMAS M STRAND 48 YEARS OLD COFOUNDER OF DOUGHERTY DAWKINS STRAND & BIGELOW INC WAS NAMED A DIRECTOR OF THIS COMPANY WHICH SELLS AND LEASES NEW AND USED ELECTRONIC DATA PROCESSING EQUIPMENT INCREASING BOARD MEMBERSHIP TO SEVEN 9301120167 930112 WHO'S NEWS EXGOVERNOR OF NEW YORK TO LOBBY FOR WR GRACE BOCA RATON FLA WR GRACE & CO NAMED FORMER NEW YORK GOV HUGH L CAREY ITS TOP WASHINGTON LOBBYIST THE 72YEAROLD MR CAREY HAS WORKED SINCE 1987 AS EXECUTIVE VICE PRESIDENT IN CHARGE OF THE CHEMICAL COMPANY'S ENVIRONMENTAL POLICY OFFICE HE SUCCEEDS ALAN D FIERS 53 WHO WAS NAMED PRESIDENT OF GRACE'S NEWLY CREATED EMISSIONCONTROL PRODUCTS UNIT MR CAREY WAS A MEMBER OF THE HOUSE OF REPRESENTATIVES FROM 1961 TO 1974 AND NEW YORK GOVERNOR FROM 1974 TO 1982 HE WILL HEAD A LOBBYING OFFICE OF ABOUT 20 EMPLOYEES 9301120166 930112 CALDOR REACHES PACT WITH NEW YORK STATE OVER ADVERTISED SALES NEW YORK CALDOR CORP REACHED A SETTLEMENT WITH NEW YORK STATE OFFICIALS IN WHICH IT AGREED TO CHANGE SOME PRACTICES REGARDING ADVERTISED SALE ITEMS THAT AREN'T AVAILABLE TO CONSUMERS CALDOR IN NORWALK CONN ALSO AGREED TO REIMBURSE THE STATE 50000 FOR THE COST OF THE INVESTIGATION UNDER THE TERMS OF TODAY'S SETTLEMENT CALDOR MUST ENSURE THAT IT HAS ENOUGH OF ANY ADVERTISED SALE ITEM TO MEET ANTICIPATED DEMAND FOR THE FULL SALE PERIOD IT CAN OFFER CUSTOMERS RAINCHECKS ONLY WHEN AN ITEM BECOMES UNAVAILABLE DUE TO CIRCUMSTANCES BEYOND ITS CONTROL SAID ROBERT ABRAMS STATE ATTORNEY GENERAL FURTHER IF CALDOR CAN'T OBTAIN THE RAINCHECK ITEM WITHIN FOUR WEEKS IT MUST ISSUE A COUPON ENABLING THE CUSTOMER TO BUY A REPLACEMENT ITEM FROM THE SAME DEPARTMENT WITHIN THE STORE AT AN EQUIVALENT PERCENTAGE DISCOUNT PLUS AN ADDITIONAL 5 DISCOUNT MR ABRAMS SAID IN A STATEMENT CALDOR MUST ALSO PLACE CORRECTIVE ADVERTISEMENTS IN NEWSPAPERS NOTIFYING CONSUMERS OF THE UNAVAILABLE ADVERTISED ITEMS IF THOSE ITEMS AREN'T DELIVERED TO STORES DUE TO CIRCUMSTANCES BEYOND CALDOR'S CONTROL MR ABRAMS SAID MR ABRAMS SAID A SURVEY MADE BY HIS OFFICE OF CALDOR STORES IN ALBANY POUGHKEEPSIE WESTCHESTER COUNTY AND LONG ISLAND SHOWED THAT AN AVERAGE OF 21 OF ADVERTISED SALE ITEMS WEREN'T AVAILABLE IN THE STORES CALDOR MADE NO ADMISSION OF ANY VIOLATIONS OF LAW AND THE COMPANY SAID THE AGREEMENT MERELY CONFIRMS MOST OF ITS CURRENT RAINCHECK POLICY IT ALSO SAID ITS RAINCHECK LEVELS HAVE DECLINED SIGNIFICANTLY SINCE EARLY LAST YEAR WHEN THE STATE DID ITS INVESTIGATION DON R CLARKE CALDOR'S CHAIRMAN AND CHIEF EXECUTIVE SAID CALDOR HAS IMPROVED ITS INVENTORY SYSTEM INCLUDING CONSTRUCTION OF A NEW REGIONAL DISTRIBUTION CENTER IN NEWBURGH NY 9301120165 930112 WHO'S NEWS MCGRAWHILL INC MCGRAWHILL INC NEW YORK EDWARD B RIDOLFI 56 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE TRAINING AND DEVELOPMENT AT THIS PUBLISHING AND INFORMATION SERVICES COMPANY MR RIDOLFI HAD BEEN DIRECTOR OF CORPORATE TRAINING AND DEVELOPMENT 9301120164 930112 WHO'S NEWS AMOCO CORP AMOCO CORP CHICAGO KENNETH W CIRIACKS WAS NAMED VICE PRESIDENT TECHNOLOGY OF THIS OIL COMPANY HE SUCCEEDS KEITH W MCHENRY WHO IS RETIRING APRIL 6 AFTER 37 YEARS WITH THE COMPANY MR CIRIACKS WAS PREVIOUSLY VICE PRESIDENT RESEARCH FOR AMOCO'S EXPLORATION AND PRODUCTION UNIT AMOCO PRODUCTION CO IN TULSA OKLA 9301120163 930112 WHO'S NEWS ARTHUR ANDERSEN UNIT REALIGNS OPERATIONS NAMES 3 NEW OFFICIALS CHICAGO ANDERSEN CONSULTING SAID IT COMBINED SEVEN OPERATING UNITS OF ITS 1 BILLION PRODUCTS INDUSTRY PRACTICE INTO THREE UNITS TO MORE CLOSELY REFLECT THE WAY ITS 151 WORLDWIDE OFFICES RESPOND TO LOCAL MARKET DEMANDS THE CHANGE EFFECTIVE IMMEDIATELY RESULTS IN THREE MANAGING PARTNERS HEADING UP THE UNITS THEY ARE STEVEN J JOHNSON CHICAGO HEADING CONSUMER PRODUCTS CARLETON F KILMER BOSTON INDUSTRIAL PRODUCTS AND DAVID A CROW ATLANTA PROCESS/ENERGY PRODUCTS THE THREE WHO PREVIOUSLY HEADED SOME OF THE SEVEN GROUPS CONTINUE TO REPORT DIRECTLY TO LEROY D PETERSON WORLDWIDE MANAGING PARTNER OF THE PRODUCTS PRACTICE A SPOKESMAN FOR ANDERSEN CONSULTING SAID THE REORGANIZATION WOULDN'T RESULT IN ANY LAYOFFS THE PRODUCTS PRACTICE IS THE LARGEST OF THE COMPANY'S SIX INDUSTRY PRACTICES WITH REVENUE EXPECTED TO EXCEED 1 BILLION OR 41 OF ANDERSEN CONSULTING'S 1992 REVENUE ANDERSEN CONSULTING IS A BUSINESS UNIT OF ARTHUR ANDERSEN & CO SC WHICH IS ALSO THE PARENT OF ARTHUR ANDERSEN & CO A MAJOR ACCOUNTING FIRM 9301120162 930112 INTERNATIONAL VIRGIN ATLANTIC GETS 935000 APOLOGY IN LIBEL SETTLEMENT WITH BRITISH AIR BY BRIAN COLEMAN AND RICHARD L HUDSON STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON VIRGIN ATLANTIC AIRWAYS AND ITS CHAIRMAN RICHARD BRANSON WON AN APOLOGY AND A PAYMENT OF 610000 935000 PLUS LEGAL FEES FROM BRITISH AIRWAYS PLC AND ITS CHAIRMAN IN A DISPUTE OVER AN ALLEGED DIRTY TRICKS CAMPAIGN BUT WHILE THE WIDELY EXPECTED SETTLEMENT THE SECONDLARGEST LIBEL SETTLEMENT EVER IN BRITAIN MAY HAVE EMBARRASSED BRITISH AIRWAYS IT MAY NOT BE THE END OF THE LONGRUNNING DISPUTE OVER A CAMPAIGN THAT MR BRANSON SAID INCLUDED SPREADING HOSTILE RUMORS ABOUT VIRGIN AND TRYING TO POACH HIS AIRLINE'S PASSENGERS IN AN INTERVIEW AFTER THE COURT HEARING MR BRANSON SAID HE IS CONSIDERING WHETHER TO TAKE LEGAL ACTION ON OTHER GROUNDS AGAINST BRITISH AIRWAYS IN THE US AND BRITAIN AND BEFORE THE EUROPEAN COMMUNITY COMMISSION DESPITE THE LIBEL SETTLEMENT MR BRANSON SAID HE WASN'T SATISFIED WITH BRITISH AIRWAYS' APOLOGY I WAS HOPING TODAY TO SEE BRITISH AIRWAYS DEPUTY CHAIRMAN SIR COLIN MARSHALL AND CHAIRMAN LORD KING MAKE AN APPEARANCE IN COURT AND MAKE A PROPER APOLOGY HE SAID NEITHER EXECUTIVE WAS PRESENT AT THE LONDON COURTROOM WHERE THE SETTLEMENT WAS READ BEFORE DECIDING HIS NEXT STEP HOWEVER MR BRANSON SAID HE WANTS A TWOWEEK COOLINGOFF PERIOD TO SEE HOW LORD KING AND SIR COLIN REACT TO THE SETTLEMENT VIRGIN AND MR BRANSON LAUNCHED THEIR SUIT LAST MARCH AFTER LORD KING SAID IN AN INTERNAL BRITISH AIRWAYS NEWSLETTER AND AGAIN IN A LETTER TO SHAREHOLDERS THAT MR BRANSON'S CLAIMS OF A DIRTY TRICKS CAMPAIGN WERE PART OF A PUBLICITY STUNT BASED ON UNFOUNDED RUMORS YESTERDAY HOWEVER BRITISH AIRWAYS ADMITTED THAT MR BRANSON HAD REASON TO MAKE HIS CLAIMS BRITISH AIRWAYS AGREED TO PAY DAMAGES OF 500000 TO MR BRANSON AND 110000 TO VIRGIN PLUS LEGAL COSTS THAT COULD TOTAL 45 MILLION FOR BOTH SIDES BRITISH AIRWAYS AND LORD KING ACCEPT THAT THE ALLEGATIONS AGAINST RICHARD BRANSON AND VIRGIN ATLANTIC ARE WHOLLY UNTRUE SAID A STATEMENT ISSUED BY BRITISH AIRWAYS' LAWYER IN PARTICULAR BRITISH AIRWAYS AND LORD KING WISH TO APOLOGIZE FOR HAVING ATTACKED THE GOOD FAITH AND INTEGRITY OF RICHARD BRANSON IN FACT THE LAWYER SAID AN INTERNAL BRITISH AIRWAYS INVESTIGATION HAD REVEALED A NUMBER OF INCIDENTS INVOLVING THEIR EMPLOYEES WHICH BRITISH AIRWAYS ACCEPT WERE REGRETTABLE AND GAVE RICHARD BRANSON AND VIRGIN ATLANTIC REASONABLE GROUNDS FOR CONCERN ACCORDING TO VIRGIN THOSE ACTIONS INCLUDED AN EFFORT BY A PUBLIC RELATIONS CONSULTANT BRIAN BASHAM TO PLANT STORIES IN THE PRESS QUESTIONING THE FINANCIAL STATUS OF VIRGIN AND MR BRANSON VIRGIN ALSO SAID BRITISH AIRWAYS EMPLOYEES OFFERED INDUCEMENTS TO VIRGIN CUSTOMERS TO FLY WITH BRITISH AIRWAYS FINANCIAL MARKETS REACTED CALMLY TO THE SETTLEMENT WHICH WAS EXPECTED AND SEEN AS A MINOR ISSUE FOR BRITISH AIRWAYS A PROFITABLE AIRLINE WITH ANNUAL REVENUE OF MORE THAN 5 BILLION BRITISH AIRWAYS SHARES DROPPED FOUR PENCE TO 274 PENCE ON THE LONDON STOCK EXCHANGE MONDAY 9301120161 930112 CHIRON UNIT TESTS TREATMENT FOR CAUSE OF AIDS BLINDNESS SAN FRANCISCO CHIRON CORP SAID ITS OPTHALMICS UNIT IS TESTING AN IMPLANTABLE DEVICE FOR TREATING A COMMON CAUSE OF AIDSRELATED BLINDNESS THAT COULD MARKEDLY REDUCE THE COST AND THE TOXICITY OF THE CONDITION'S TREATMENT CHIRON INTRAOPTICS INC SAID IT LICENSED EXCLUSIVE WORLDWIDE RIGHTS FOR OPTHALMIC APPLICATIONS OF THE DRUG DELIVERY TECHNOLOGY FROM CONTROL DELIVERY SYSTEMS INC A PRIVATELY HELD HAMDEN CONN COMPANY IN WHICH CHIRON HAS PURCHASED A 30 STAKE THE CHIRON UNIT SAID IT WILL ASSUME SPONSORSHIP OF CLINICAL TRIALS THAT USE THE TECHNOLOGY TO DELIVER ANTIVIRAL DRUGS INTO THE EYE FOR TREATMENT OF AN AIDSRELATED INFECTION OF THE RETINA CAUSED BY CYTOMEGALOVIRUS CMV THE CONDITION KNOWN AS CMV RETINITIS NOW IS TREATED WITH A HOSPITALBASED SERIES OF INJECTIONS OF THE DRUG GANCICLOVIR WHICH CAN COST 100000 A YEAR SAID WILLIAM LINK CHAIRMAN AND CHIEF EXECUTIVE OF CHIRON INTRAOPTICS HE SAID SUSTAINED DELIVERY OF THE DRUG THROUGH AN IMPLANTABLE DEVICE MIGHT COST ONETENTH OF THAT A SPOKESMAN SAID CHIRON HOPES THAT DELIVERING SMALLER AMOUNTS OF DRUG DIRECTLY TO THE AFFECTED AREA OF THE EYE ALSO MIGHT REDUCE TOXIC SIDE EFFECTS THE DELIVERY SYSTEM WHICH WOULD NEED FOOD AND DRUG ADMINISTRATION APPROVAL HALTED PROGRESSION OF CMV RETINITIS IN 28 OUT OF 30 PATIENTS IN A PRELIMINARY TRIAL IN A SECOND TRIAL 80 PATIENTS ARE INVOLVED IN A COMPARISON OF FOURMONTH AND EIGHTMONTH SUSTAINED DELIVERY REGIMENS CHIRON WILL LAUNCH EFFICACY TESTS IN A GROUP OF 200 PATIENTS IN MARCH IN A RELATED MOVE CHIRON INTRAOPTICS SAID IT PURCHASED OPTHALMIC MARKETING RIGHTS FOR CERTAIN LASERS USED IN EYE SURGERY FROM TECHNOLAS GMBH OF MUNICH 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 9301120160 930112 WHO'S NEWS HEALTH CARE REIT INC HEALTH CARE REIT INC TOLEDO OHIO ERIN C IBELE 31 YEARS OLD CORPORATE SECRETARY WAS NAMED TO THE ADDITIONAL TITLE OF VICE PRESIDENT OF ADMINISTRATION OF THIS HEALTHCARE REAL ESTATE INVESTMENT TRUST AND ITS RELATED INVESTMENT ADVISER FIRST TOLEDO CORP 9301120159 930112 WHO'S NEWS LONE STAR STEAKHOUSE & SALOON INC LONE STAR STEAKHOUSE & SALOON INC WICHITA KAN DOUG GLENDENNING 37YEAROLD CHIEF OPERATING OFFICER OF THIS RESTAURANT CHAIN WAS NAMED A DIRECTOR INCREASING THE BOARD'S SIZE TO SIX MEMBERS DOUG GLENDENNING 36 YEARS OLD WAS NAMED TO THE BOARD OF LONE STAR STEAKHOUSE & SALOON INC INCREASING THE BOARD'S SIZE TO EIGHT MEMBERS BECAUSE OF INCORRECT INFORMATION SUPPLIED BY THE COMPANY YESTERDAY'S WHO'S NEWS COLUMN MISSTATED MR GLENDENNING'S AGE AND THE SIZE OF THE BOARD 9301120158 930112 LAW CLIFFORD LOSES STATECOURT BID TO KILL CHARGES NEW YORK JUDGE REFUSES TO DISMISS INDICTMENT RELATED TO BCCI WORK BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A JUDGE REFUSED TO DISMISS AN INDICTMENT AGAINST CLARK CLIFFORD IN CONNECTION WITH HIS ALLEGED WORK FOR THE BANK OF CREDIT & COMMERCE INTERNATIONAL SA SAYING THE EVIDENCE AGAINST THE PROMINENT WASHINGTON LAWYER WAS OVERWHELMING THE 86YEAROLD MR CLIFFORD FORMER CHAIRMAN OF BCCICONTROLLED FIRST AMERICAN BANKSHARES INC HAD ASKED THAT THE CASE BE DROPPED BECAUSE OF HIS POOR HEALTH MR CLIFFORD IS SUFFERING FROM A HEART CONDITION AND HIS DOCTORS SAY HE NEEDS BYPASS SURGERY ALTHOUGH THE TRIAL DATE IS SET AT FEB 15 BOTH SIDES CONCEDE THAT MR CLIFFORD IS TOO ILL TO STAND TRIAL IN HIS CURRENT CONDITION THE RULING BY NEW YORK STATE JUDGE JOHN AK BRADLEY LEFT OPEN THE POSSIBILITY THAT MR CLIFFORD COULD BE TRIED LATER IN A SEPARATE PROCEEDING FROM THAT OF HIS CODEFENDANT AND PROTEGE ROBERT ALTMAN FORMER PRESIDENT OF FIRST AMERICAN IN HIS RULING JUDGE BRADLEY SAID THE COURT HAS READ THE 9500 PAGES OF GRAND JURY MINUTES UNDERLYING THIS INDICTMENT WHILE SOME OF THIS MATERIAL RELATES TO OTHER ACTIVITIES OF BCCI THE IMPRESSION ON THIS READER IS THAT THE EVIDENCE OF GUILT IS OVERWHELMING JUDGE BRADLEY ALSO NOTED THAT MR CLIFFORD'S LAWYERS HAVEN'T ASKED FOR A DISMISSAL OF A FEDERAL INDICTMENT WHICH MAKES SIMILAR BUT NARROWER ALLEGATIONS PENDING IN US COURT IN WASHINGTON DC JUDGE BRADLEY ACCUSED MR CLIFFORD OF ATTEMPTING TO MANIPULATE THE COURTS SO THAT HE CAN STAND TRIAL IN WASHINGTON ON THE NARROWER FEDERAL CHARGES MR CLIFFORD APPARENTLY BELIEVES THAT IN WASHINGTON HE CAN GET A FAVORABLE RESULT AND CLEAR HIS NAME HE APPEARS TO BE LESS SURE OF THAT IN NEW YORK JUDGE BRADLEY WROTE MR CLIFFORD'S NEW YORK ATTORNEY CHARLES A STILLMAN SAID NO DECISION HAS BEEN MADE ON WHETHER TO SEEK A SEPARATE TRIAL FROM MR ALTMAN'S AFTER MR CLIFFORD'S HEALTH IMPROVES AS FOR JUDGE BRADLEY'S COMMENTS ABOUT THE EVIDENCE AGAINST MR CLIFFORD MR STILLMAN SAID WE DIDN'T GET TO PRESENT TESTIMONY TO THE GRAND JURY MR CLIFFORD NEVER TESTIFIED BEFORE THE GRAND JURY MR STILLMAN ALSO REJECTED THE NOTION THAT HIS CLIENT WAS ATTEMPTING TO MANIPULATE THE COURTS WERE MR CLIFFORD MEDICALLY ABLE HE WOULD LIKE NOTHING MORE THAN TO GO TO TRIAL AND CLEAR HIS NAME MR STILLMAN SAID MR CLIFFORD'S DOCTORS HAVE SAID THE OCTOGENARIAN IS SO ILL THAT HE COULD DIE WITHIN SIX MONTHS IF HE DOESN'T HAVE THE BYPASS SURGERY BUT THE SURGERY IS ALSO EXTREMELY RISKY FOR SOMEONE OF MR CLIFFORD'S AGE MR STILLMAN SAID HIS CLIENT WHO APPEARED FRAIL AT COURT PROCEEDINGS IN THE FALL NOW IS TOO WEAK TO COME TO COURT EVEN IF ORDERED BY A JUDGE THE MOTION TO DISMISS THE INDICTMENT WAS SIMPLY AN EFFORT BY MR CLIFFORD TO LIVE OUT HIS LAST DAYS IN PEACE MR STILLMAN ADDED MR CLIFFORD A FORMER DEFENSE SECRETARY WAS AN ADVISER TO FIVE US PRESIDENTS OVER THE YEARS THE STATE AND FEDERAL INDICTMENTS ALLEGE THAT MR CLIFFORD ABUSED HIS INFLUENCE BY HELPING BCCI ILLEGALLY CONTROL FIRST AMERICAN BANKSHARES A WASHINGTONBASED BANK WITH OFFICES IN NEW YORK MR CLIFFORD AND MR ALTMAN MAINTAIN THAT THEY HAD NO IDEA THAT BCCI CONTROLLED THE BANK IN A SEPARATE OPINION JUDGE BRADLEY DISMISSED A MISDEMEANOR COUNT OF CONSPIRACY THE LEAST SERIOUS CHARGE IN THE INDICTMENTS AGAINST MR CLIFFORD AND MR ALTMAN HE SAID PROSECUTORS COULD PROCEED ON ALL OTHER COUNTS LAST MONTH ANOTHER STATE COURT JUDGE REFUSED TO RELEASE 5 MILLION OF MR CLIFFORD'S 19 MILLION IN ASSETS IN NEW YORK MR CLIFFORD SAID HE WANTED THAT MONEY TO PAY LIVING EXPENSES TO MAKE GIFTS TO FAMILY MEMBERS AND TO PAY LEGAL BILLS BUT THE JUDGE NOTED THAT MR CLIFFORD HAS MORE THAN 1 MILLION OF UNFROZEN ASSETS IN WASHINGTON AND THAT THE MONEY IN NEW YORK COULD GO TO THE GOVERNMENT IF HE IS CONVICTED MEANWHILE PREPARATIONS FOR THE TRIAL ARE PROCEEDING ON THURSDAY THE FIRST GOVERNMENT WITNESS WILL TESTIFY AT A VIDEOTAPED HEARING BECAUSE OF FEARS THAT THE WITNESS MIGHT DIE OF LUNG CANCER BEFORE THE ACTUAL TRIAL THE WITNESS KHALID SHARIH WAS THE CHIEF OF PROTOCOL IN THE BCCI OFFICE IN NEW YORK 9301120157 930112 WHAT'S NEWS WORLDWIDE THE SECURITY COUNCIL ISSUED A CONDEMNATION OF IRAQI RAIDS INTO KUWAIT THE 15NATION UN COUNCIL ALSO DEMANDED THAT BAGHDAD RETURN MISSILES IT SEIZED INSIDE KUWAIT IN VIOLATION OF THE GULF WAR CEASEFIRE THE NONBINDING STATEMENT CONTAINED A VAGUE WARNING OF SERIOUS CONSEQUENCES FOR IRAQ EARLIER IN THE DAY SCORES OF IRAQIS CROSSED INTO THE EMIRATE FOR THE SECOND TIME IN 24 HOURS THE WHITE HOUSE ACCUSED IRAQ'S SADDAM HUSSEIN OF TRYING TO CHEAT WHEREVER POSSIBLE ON TRUCE TERMS ADDING THAT THE ALLIES FELT FREE TO RETALIATE A SPOKESMAN FOR CLINTON SAID THE PRESIDENTELECT STANDS FOURSQUARE WITH PRESIDENT BUSH IN REFUSING TO TOLERATE IRAQI VIOLATIONS OF UN RESOLUTIONS SERBIAN PRESIDENT MILOSEVIC OFFERED HIS SUPPORT FOR AN INTERNATIONAL PLAN TO SETTLE THE BOSNIA CONFLICT CALLING ON THE THREE WARRING FACTIONS TO MAKE THE BLUEPRINT A BASIS FOR PEACE THE PLAN CALLS FOR A SOVEREIGN BOSNIA DIVIDED INTO 10 AUTONOMOUS PROVINCES MILOSEVIC WAS MAKING HIS FIRST APPEARANCE AT GENEVA PEACE TALKS THAT RESUMED SUNDAY US MARINES SWEPT THROUGH SOMALIA'S BIGGEST ARMS MARKET AND CONFISCATED WEAPONS RANGING FROM ANTIAIRCRAFT GUNS TO ASSAULT RIFLES THE RAID IN MOGADISHU INVOLVING 900 MARINES BACKED BY TANKS AND HELICOPTERS INDICATED THAT US FORCES ARE BROADENING THEIR MISSION WHICH INITIALLY FOCUSED ON GUARDING FOOD SHIPMENTS ROSS PEROT LAUNCHED A NATIONWIDE MEMBERSHIP DRIVE FOR HIS GRASSROOTS POLITICAL ORGANIZATION PLEDGING TO MAKE IT A WATCHDOG GROUP THAT WOULD MONITOR THE PERFORMANCE OF CLINTON AND CONGRESS IN CUTTING THE FEDERAL DEFICIT THE DALLAS BILLIONAIRE GARNERED NEARLY 20 OF THE VOTE IN HIS BID FOR PRESIDENT IN NOVEMBER THE SUPREME COURT REJECTED AN OKLAHOMA ANTIABORTION GROUP'S APPEAL OF A RULING THAT REMOVED FROM STATE BALLOTS A PROPOSED LAW OUTLAWING MOST ABORTIONS IN A VICTORY FOR ABORTIONRIGHTS ADVOCATES THE JUSTICES LET STAND LAST YEAR'S DECISION BY THE OKLAHOMA SUPREME COURT THAT THE INITIATIVE WAS UNCONSTITUTIONAL THE COURT LEFT INTACT A 43 MILLION JUDGMENT AGAINST SOLDIER OF FORTUNE MAGAZINE WON BY TWO SONS OF A GEORGIA MAN KILLED AFTER HIS BUSINESS PARTNER HIRED AN ASSASSIN THROUGH A PERSONAL AD THE COURT ALSO LET STAND A JAIL TERM FOR A FORMER FLORIDA NEWSPAPERMAN WHO REFUSED TO DISCLOSE THE SOURCE OF A REPORT IN A CHILD CUSTODY CASE THE US GOVERNMENT IS QUIETLY STUDYING WHETHER A FUNGUS COMMONLY FOUND IN MIDWEST CORNFIELDS IS CONTAMINATING FOOD WITH A SUSPECTED CARCINOGEN THE FDA PLANS TO COLLECT SAMPLES OF POPCORN CORN CHIPS CORN FLAKES AND OTHER CORNBASED PRODUCTS FROM FOOD STORES AND SCREEN THEM FOR THE TOXIN PLO CHAIRMAN ARAFAT DECLARED HIS ORGANIZATION HAD SUSPENDED MIDEAST TALKS UNTIL ISRAEL ALLOWS THE RETURN OF OVER 400 PALESTINIANS IT EXPELLED TO LEBANON ACCORDING TO REUTER NEWS AGENCY ARAFAT MADE THE STATEMENT AFTER A MEETING OF ISLAMIC STATES IN SENEGAL ARAB MINISTERS WERE ALSO MEETING IN CAIRO TO DISCUSS THE EXPULSIONS STORMY SEAS BATTERED A TANKER GROUNDED OFF THE SHETLAND ISLANDS RENEWING FEARS THAT MUCH OF THE VESSEL'S 25 MILLION GALLONS OF CRUDE OIL WILL BE DUMPED AT LEAST SEVEN OF THE SHIP'S 12 STORAGE TANKS WERE OPEN TO THE SEA A SALVAGE OFFICIAL SAID OIL GUSHED 20 FEET IN THE AIR AS SEA WATER FORCED THE CRUDE OUT OF THE TANKER THOUSANDS OF MUSLIMS JAMMED A RAILWAY STATION IN BOMBAY WAITING TO FLEE THE CITY WHERE SIX DAYS OF HINDUMUSLIM RIOTS HAVE KILLED AT LEAST 137 PEOPLE POLICE SAID 15 AREAS HAVE BEEN PLACED UNDER CURFEW AND ABOUT 2800 PEOPLE HAVE BEEN ARRESTED AMID WIDESPREAD LOOTING AND ARSON THE STATE DEPARTMENT URGED ARAB NATIONS TO SIGN A TREATY BANNING CHEMICAL WEAPONS THE APPEAL WAS ISSUED AS SECRETARY OF STATE EAGLEBURGER PREPARED TO LEAVE FOR PARIS WHERE HE WILL JOIN OFFICIALS OF ABOUT 120 COUNTRIES IN SIGNING THE PACT ARAB STATES HAVE REFUSED TO SIGN THE TREATY AS LONG AS ISRAEL RETAINS NUCLEAR WEAPONS THE NATIONAL COMMISSION ON AIDS SAID THAT ALMOST HALF THE PEOPLE IN THE US WITH AIDS ARE BLACK OR HISPANIC AND THAT THE EPIDEMIC MUST BE ADDRESSED AS A RACIAL ISSUE A REPORT BY THE PANEL CITED RACISM POVERTY AND LACK OF HEALTH SERVICES AS FACTORS UNDERCUTTING EFFORTS TO HALT THE RAPID SPREAD OF THE VIRUS AMONG RACIAL MINORITIES 9301120156 930112 INTERNATIONAL HANSON UNIT MULLS SWAP OF GOLD ASSETS FOR SANTA FE PACIFIC'S COAL INTERESTS BY JANET GUYON AND DANIEL MACHALABA STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON BRITISH CONGLOMERATE HANSON PLC SAID ITS HANSON INDUSTRIES UNIT IN THE US IS DISCUSSING SWAPPING ITS GOLD ASSETS FOR THE COAL AND QUARRY ASSETS OF SANTA FE PACIFIC CORP A US RAILROAD AND MINERAL COMPANY RESPONDING TO REPORTS IN BRITISH NEWSPAPERS OVER THE WEEKEND HANSON SAID HOWEVER THAT NO AGREEMENT TO COMPLETE A TRANSACTION HAS BEEN REACHED AND THERE CAN BE NO ASSURANCE THAT ONE WILL BE REACHED TALKS ARE SUBSTANTIVE AND ARE CONTINUING THE COMPANY SAID A HANSON SPOKESMAN WOULDN'T COMMENT FURTHER SANTA FE BASED IN SCHAUMBURG ILL ALSO CONFIRMED THE TALKS BUT DIDN'T GIVE DETAILS IT IS ESTIMATED THAT SUCH A TRANSACTION WOULD INVOLVE ASSETS OF ABOUT 500 MILLION AT EACH COMPANY IF AN ACCORD IS REACHED IT WOULD BOOST HANSON'S ALREADY POWERFUL POSITION IN COAL WHICH SOME INDUSTRY ANALYSTS SAY IS MAKING A RESURGENCE AT THE EXPENSE OF NUCLEAR POWER THE COMPANY HAS BEEN EXPANDING ITS COAL INTERESTS SINCE ACQUIRING PEABODY COAL IN 1990 FOR 122 BILLION LAST YEAR IT BOUGHT AMERICAN ELECTRIC POWER'S MARTINKA MINE AND COAL RESERVES FOR 165 MILLION AND ACQUIRED AN OPTION TO BUY A LOW SULFUR MINE IN VENEZUELA HANSON LAST YEAR ALSO PLANNED TO BUY THE AUSTRALIAN COAL OPERATIONS OF COSTAIN GROUP PLC FOR 200 MILLION BUT COSTAIN INSTEAD OPTED TO SELL THOSE ASSETS TO ALTUS FINANCE SA FOR A HIGHER PRICE HANSON IS SUING COSTAIN FOR BREACH OF CONTRACT THE COMPANY'S LATEST ANNUAL REPORT SAYS THAT COAL MINING ACCOUNTED FOR 101 BILLION 155 BILLION OR 115 OF HANSON'S TOTAL 1992 SALES GOLD MINING BY CONTRAST ACCOUNTED FOR ONLY 106 MILLION OF SALES MOREOVER IN A YEAR OF DECLINING GOLD PRICES WITH POOR NEARTERM RESULTS WE EXPECT FURTHER PROFIT DETERIORATION BEFORE ANY IMPROVEMENT TAKES PLACE HANSON SAID IN ITS ANNUAL REPORT THE COMPANY ACQUIRED ITS GOLD BUSINESS GOLD FIELDS MINING CORP IN 1989 WHEN IT TOOK OVER CONSOLIDATED GOLD FIELDS OF BRITAIN SANTA FE FOR ITS PART IS CONSIDERING A SPINOFF OF ITS MINERALS UNIT TO SHAREHOLDERS AND ACCORDING TO ROBERT KREBS SANTA FE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE THE MORE THE MINERALS COMPANY BECOMES A PRECIOUS METALS COMPANY THE MORE LIKELY MANAGEMENT WOULD RECOMMEND SUCH A MOVE MANAGEMENT IS PROBABLY CONCLUDING THAT THE VALUATION OF THE GOLD ASSETS OF SANTA FE PACIFIC WILL BE ENHANCED IF IT IS A PURE GOLD COMPANY AS OPPOSED TO A MORE DIVERSIFIED GOLD AND COAL COMPANY SAID GRAEME ANNE LIDGERWOOD AN ANALYST AT FIRST BOSTON CORP SANTA FE'S RAIL UNIT ACCOUNTED FOR ABOUT 90 OF THE COMPANY'S 1991 REVENUE OF 236 BILLION WHILE ITS MINERALS UNIT ACCOUNTED FOR SLIGHTLY LESS THAN 10 OF THE MINERAL UNIT'S 1991 REVENUE COAL ACCOUNTED FOR 865 MILLION GOLD FOR 672 MILLION AND OTHER OPERATIONS INCLUDING CRUSHED STONE AGGREGATES AND ROYALTIES FOR 257 MILLION 9301120155 930112 TRAVEL NORTHWEST CUTS FARES TO BOOST LEISURE TRAVEL BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES SEEKING TO ENTICE FAMILIES AND GROUPS OF LEISURE TRAVELERS WHO OFTEN WAIT FOR DEEP FARE CUTS BEFORE FLYING INTRODUCED A PERMANENT DISCOUNT FARE THE NEW SUPERSAVER DISCOUNT FARE WILL OFFER SAVINGS OF 20 TO 40 ANYTIME GROUPS OF TWO OR MORE PEOPLE TRAVEL TOGETHER PEOPLE HAVE LEARNED TO WAIT FOR THE SALES SAYS MICHAEL LEVINE NORTHWEST'S EXECUTIVE VICE PRESIDENT OF MARKETING WE'RE TRYING TO DECOUPLE THE LEISURE FARES FROM THE REST OF THE FARE MARKET BY OFFERING FARES LOW ENOUGH SO THAT IT WON'T PAY FOR THEM TO WAIT FOR A FARE SALE WHILE THIS LATEST FARE INITIATIVE BY NORTHWEST A UNIT OF WINGS HOLDINGS INC WILL LIKELY STIMULATE FAMILY TRAVEL IT ALSO WILL HELP ELIMINATE THE USE OF SUPERSAVER FARES BY BUSINESS TRAVELERS UNTIL NOW WHEN SUPERSAVER FARES DROPPED 50 BELOW THE LEVEL OF BUSINESS FARES MANY BUSINESS TRAVELERS PURCHASED ROUNDTRIP SUPERSAVER FARES AND THREW AWAY THE RETURN PORTION OF THE TICKET OR USED IT AT A LATER DATE BECAUSE MOST BUSINESS TRAVELERS FLY ALONE THEY WON'T BE ABLE TO TAKE ADVANTAGE OF THE CHEAPEST SUPERSAVER FARES BUSINESS PEOPLE WON'T ABUSE THESE TICKETS MAINTAINS MR LEVINE SHOULD THE FARE INITIATIVE STICK THROUGHOUT THE INDUSTRY HE SAYS IT WILL ALLOW AIRLINES TO MAINTAIN AN ATTRACTIVE OFFERING FOR THE MOST PRICESENSITIVE TRAVELERS WHILE ALLOWING THE BASIC SUPERSAVER FARES TO CONTINUING RISING ALONG WITH BUSINESS FARES HOWEVER THE NEW FARE STRUCTURE WILL OFFER RELIEF TO GROUPS OF BUSINESS TRAVELERS WHO CAN WORK AROUND THE RESTRICTIONS THAT APPLY TO THE SUPERSAVER FARES GROUPS OF BUSINESS PEOPLE GOING TO COMPANY MEETINGS OR CONVENTIONS MIGHT BE ABLE TO SAVE THOUSANDS SAYS THOMAS NULTY PRESIDENT OF ASSOCIATED TRAVEL A SANTA ANA CALIF TRAVEL AGENCY WHILE OTHER MAJOR AIRLINES SAID THEY WERE STUDYING THE MOVE AT LEAST ONE AIRLINE OFFICIAL EXPRESSED CONCERN THAT TRAVEL AGENTS MIGHT TAKE ADVANTAGE OF THE FARE STRUCTURE BY MATCHING TRAVELERS WHO DON'T KNOW EACH OTHER TO THE SAME DESTINATION HE ALSO EXPRESSED CONCERN THAT THE FARES ARE AS MUCH AS 40 BELOW ALREADY HIGHLY DISCOUNTED FARES HOWEVER UNDER THE NEW STRUCTURE FRAUD WILL BE DIFFICULT THE FARES REQUIRE THAT TRAVELERS BOOK THEIR FLIGHTS TOGETHER CHECKIN TOGETHER AND FOLLOW IDENTICAL ITINERARIES AS AN EXAMPLE OF THE FARE STRUCTURE TWO PASSENGERS CAN TRAVEL ROUNDTRIP BETWEEN BOSTON AND SAN FRANCISCO FOR 448 EACH A 20 DECREASE IN THE NORMAL FARE OF 560 EACH THREE PASSENGERS CAN TRAVEL THE SAME MARKET FOR 392 EACH A 30 SAVING AND FOUR PASSENGERS OR MORE WILL RECEIVE A 40 SAVINGS FLYING FOR 336 EACH THE FARES WILL BECOME AVAILABLE TODAY ARE NONREFUNDABLE REQUIRE A SATURDAY NIGHT STAY AND MUST BE PURCHASED AT LEAST 14 DAYS IN ADVANCE INDUSTRY EXPERTS WERE CAUTIOUSLY OPTIMISTIC ABOUT THE NEW FARE STRUCTURE KEVIN MURPHY AN AIRLINE INDUSTRY ANALYST AT MORGAN STANLEY & CO SAYS THE PROMOTION COULD SPARK SOME INCREMENTAL BUSINESS SINCE IT IS PERMANENT AND NOT DESIGNED TO GET AN IMMEDIATE CASHFLOW BOOST HOWEVER MR MURPHY WARNS THAT NORTHWEST'S MOST RECENT PROMOTION AIMED AT FAMILIES DUBBED GROWNUPS FLY FREE PROMPTED LAST SUMMER'S CUTRATE FARE WARS WHICH TURNED INTO AN EARNINGS NIGHTMARE FOR THE INDUSTRY THEIR RECORD OF SUCCESS ON THESE FAMILY FARES LEAVES A LOT TO BE DESIRED HE SAYS TOM PARSONS EDITOR OF BEST FARES PUBLICATION ON DISCOUNT AIR FARES SAYS AIR FARES HAVE INCHED UP SO MUCH IN RECENT MONTHS THAT HE EXPECTS OTHER AIRLINES TO HAVE TO TAKE SIMILAR MEASURES TO KEEP LEISURE TRAVELERS FLYING HE NOTES THAT ROUNDTRIP TRANSCONTINENTAL TICKETS THAT WERE AS LOW AS 198 DURING LAST SUMMER'S FARE WAR HAVE NOW MADE THEIR WAY BACK UP TO 560 THEY CAN'T EXPECT JOHN Q CONSUMER TO GO OUT AND BUY AT 560 HE SAYS WITH THE NORTHWEST INITIATIVE MR PARSONS NOTES AIRLINES CAN KEEP RAISING THE LIST PRICE OF SUPERSAVERS AND THEN JUST OFFER THE VOLUME DISCOUNTING ON TOP OF THE NEW PRICE AT LEAST IT LETS A FAMILY KNOW THEY'RE GOING TO GET A DISCOUNT IN THE FUTURE BUT IF YOU'RE A SINGLE PERSON YOU'RE LEFT OUT NORTHWEST IS BASED IN ST PAUL MINN 9301120154 930112 WHAT'S NEWS BUSINESS AND FINANCE CHRYSLER WILL SELL 40 MILLION NEW COMMON SHARES WHICH WOULD RAISE ABOUT 146 BILLION TO BOLSTER ITS FINANCES IN A RELATED MOVE MOODY'S AND S&P BOTH UPGRADED THE AUTO MAKER'S DEBT RATING CITING THE EQUITY ISSUE AS WELL AS THE COMPANY'S PROFITABLE NEW PRODUCTS HOWEVER BOTH SERVICES CONTINUE TO RATE CHRYSLER DEBT BELOW INVESTMENT GRADE GM NAMED TO ITS BOARD ALCOA CHAIRMAN PAUL O'NEILL WHO HAS SHAKEN UP THE OLDLINE METALS COMPANY WITH A SWEEPING REORGANIZATION AND A COSTCUTTING CAMPAIGN PAUL MOZER'S PLEA AGREEMENT WAS REJECTED BY A US JUDGE WHO SAID THE TWO SIDES HAD FAILED TO AGREE ON WHETHER THE FORMER HEAD OF GOVERNMENT BOND TRADING AT SALOMON BROTHERS COULD FACE ADDITIONAL PROSECUTION FOR ANTITRUST VIOLATIONS SALOMON BROTHERS TOP EXECUTIVES ARE EXPLORING REHIRING JOHN MERIWETHER WHO LED THE FIRM'S BOND ARBITRAGE TRADING MERIWETHER WAS FORCED TO RESIGN IN THE WAKE OF SALOMON'S TREASURY SECURITIES SCANDAL KODAK NAMED HONEYWELL TURNAROUND SPECIALIST CHRISTOPHER STEFFEN CHIEF FINANCIAL OFFICER MARKING A BREAK WITH A 20YEAR TRADITION OF CHOOSING INSIDERS FOR TOP POSTS STOCK PRICES CLOSED HIGHER AS THE DOW JONES INDUSTRIALS CLIMBED 1108 POINTS TO 326275 AND OTC STOCKS HIT A RECORD BOND PRICES ROSE MODERATELY AND THE DOLLAR FINISHED LOWER NORTHWEST AIRLINES INTRODUCED A NEW PERMANENT DISCOUNT FARE THE PRICING MOVE AIMS TO ENTICE FAMILIES AND GROUPS OF LEISURE TRAVELERS WHO OFTEN WAIT FOR DEEP FARE REDUCTIONS CLARK CLIFFORD FAILED TO WIN THE DISMISSAL OF AN INDICTMENT AGAINST HIM RELATED TO HIS ALLEGED WORK FOR BCCI A STATE JUDGE CALLED EVIDENCE AGAINST THE LAWYER OVERWHELMING BUDGET DIRECTORDESIGNATE PANETTA SAID EVERYTHING IS ON THE TABLE AS CLINTON ASSEMBLES HIS DEFICITCUTTING PLAN AND REFUSED TO RULE OUT ANY SPENDING CUT OR TAX INCREASE NORDSTROM SETTLED A CLASSACTION LAWSUIT OVER BACK PAY THAT HAD RAISED QUESTIONS ABOUT WHETHER THE RETAILER'S REPUTATION FOR CUSTOMER SERVICE CAME AT THE EXPENSE OF EMPLOYEES SHEARSON LEHMAN BROTHERS ANNOUNCED A MAJOR REORGANIZATION AIMED AT BOLSTERING THE MANAGEMENT AND EARNINGS OF THE AMERICAN EXPRESS UNIT THE NO 2 US BROKERAGE FIRM THE FIRING OF SUNBEAM'S KAZARIAN FOLLOWED SENIOR MANAGERS' THREATS TO RESIGN UNLESS CHANGES WERE MADE IN HIS DEMANDING MANAGEMENT STYLE SAY PEOPLE FAMILIAR WITH THE COMPANY A UTILITIES CONSORTIUM AND THE DEPARTMENT OF ENERGY SELECTED GE AND WESTINGHOUSE TO STANDARDIZE THE NEXT GENERATION OF NUCLEAR PLANTS AN 11 STAKE IN SAKS FIFTH AVENUE WAS ACQUIRED FOR 100 MILLION BY A GROUP OF SAUDI INVESTORS LED BY A MAJOR SHAREHOLDER IN CITICORP THE IBMAPPLE JOINT VENTURE IS AHEAD OF SCHEDULE AND IS SEEKING THE ALLEGIANCE OF LEADING APPLICATIONS MAKERS THE VENTURE CALLED TALIGENT AIMS TO CHALLENGE MICROSOFT FOR LEADERSHIP IN COMPUTER OPERATING SYSTEMS VIRGIN ATLANTIC AIRWAYS AND ITS CHAIRMAN WON AN APOLOGY AND A PAYMENT OF 935000 PLUS LEGAL FEES FROM BRITISH AIRWAYS AND ITS CHAIRMAN IN A DISPUTE OVER AN ALLEGED BRITISH AIRWAYS DIRTY TRICKS CAMPAIGN BRITAIN'S HANSON SAID ITS US SUBSIDIARY IS HOLDING TALKS ABOUT SWAPPING ITS GOLD ASSETS FOR THE COAL AND QUARRY ASSETS OF SANTA FE PACIFIC AT&T SUED RIVAL TELECOMMUNICATIONS CONCERN MCI CHARGING INFRINGEMENT OF 10 PATENTS THE SUIT WAS A REACTION TO AN MCI MOVE TO HAVE SOME OF AT&T'S PATENTS DECLARED INVALID FORD MOTOR IS WEIGHING WHETHER TO BUILD A NEW MODEL IN THE US FOR ITS BRITISH JAGUAR LUXURY CAR UNIT BONDS LEHMAN BROTHERS TREASURY INDEX 468758 UP 1492 COMMODITIES OIL 1878 A BARREL OFF 10 CENTS DOW JONES FUTURES INDEX 12381 OFF 004 SPOT INDEX 12348 UP 133 DOLLAR 12515 YEN OFF 020 16330 MARKS OFF 00135 9301120153 930112 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS JOHN E KLEIN WAS NAMED VICE PRESIDENT OF THIS COMPUTER MAKER'S NEW MANUFACTURING INDUSTRIES BUSINESS UNIT MR KLEIN 51 YEARS OLD IS A 25YEAR VETERAN OF INTERNATIONAL BUSINESS MACHINES CORP WHERE HE WAS MOST RECENTLY VICE PRESIDENT OF THE INDUSTRIAL SECTOR DIVISION AN INDUSTRYFOCUSED MARKETING UNIT DIGITAL'S MANUFACTURING INDUSTRIES BUSINESS IS ONE OF NINE UNITS CREATED IN A REORGANIZATION ANNOUNCED DEC 22 9301120152 930112 WHO'S NEWS COOPERS & LYBRAND INTERNATIONAL NAMES FREEDMAN CHAIRMAN NEW YORK COOPERS & LYBRAND INTERNATIONAL ONE OF THE WORLD'S LEADING ACCOUNTING AND PROFESSIONAL SERVICES CONCERNS SAID IT NAMED EUGENE M FREEDMAN TO THE ADDED POSITION OF CHAIRMAN MR FREEDMAN 60 YEARS OLD WHO IS CURRENTLY CHAIRMAN OF COOPERS & LYBRAND THE US MEMBER FIRM SUCCEEDS C BRANDON GOUGH MR GOUGH 55 CHAIRMAN OF COOPERS & LYBRAND UK WAS RECENTLY NAMED CHAIRMAN OF COOPERS & LYBRAND EUROPE SUCCEEDING JOHN BULLOCK WHO RECENTLY RETIRED COOPERS & LYBRAND UK AND COOPERS & LYBRAND EUROPE ARE ALSO MEMBER FIRMS THE POSITION OF CHAIRMAN OF COOPERS & LYBRAND INTERNATIONAL IS FOR A TWOYEAR TERM FOR THE FISCAL YEAR ENDED SEPT 30 1992 COOPERS & LYBRAND INTERNATIONAL HAD REVENUE OF MORE THAN 53 BILLION 9301120151 930112 ROCHESTER TELEPHONE DEBENTURES ROCHESTER NY ROCHESTER TELEPHONE CORP SAID IT WILL REDEEM FRIDAY ITS 137000 OUTSTANDING OF 4 3/4 CONVERTIBLE DEBENTURES DUE MARCH 1 1994 THE PHONE COMPANY SAID THE CONVERSION OF 8696 SHARES FOR EACH 1000 OF DEBENTURES SURRENDERED WILL BE ALLOWED UNTIL THE CLOSE OF BUSINESS FRIDAY 9301120150 930112 WHO'S NEWS OKI ELECTRIC INDUSTRY CO OKI ELECTRIC INDUSTRY CO DENNIS P FLANAGAN 44 YEARS OLD WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AT OKIDATA THE MOUNT LAUREL NJ PRINTER AND FACSIMILEMACHINE UNIT OF THIS TOKYOBASED ELECTRONICS COMPANY EFFECTIVE FEB 16 MR FLANAGAN WHO WILL CONTINUE AS PRESIDENT AT THE UNIT SUCCEEDS BERNARD HERMAN 65 WHO IS RETIRING FEB 15 MR FLANAGAN'S PREVIOUS POSITION OF CHIEF OPERATING OFFICER AND MR HERMAN'S PREVIOUS POSITION OF CHAIRMAN WON'T BE FILLED 9301120149 930112 COSMETIC CENTER INC'S SALES SAVAGE MD COSMETIC CENTER INC A SPECIALTY RETAILER OF COSMETICS AND FRAGRANCES REPORTED SALES FOR DECEMBER ROSE 9 FROM A YEAR EARLIER TO 171 MILLION SAMESTORE SALES FELL 13 TO 151 MILLION THE COMPANY ADDED THAT A STRATEGY TO INCREASE GROSS PROFIT MARGINS ON ITEMS EVEN WITH LOWER RETAIL PRICES RESULTED IN AN INCREASE IN GROSS MARGIN DOLLARS 9301120148 930112 WHO'S NEWS TOP BALLY EXECUTIVE STEPS DOWN TO ASSUME POSITIONS AT SPINOFF CHICAGO BALLY MANUFACTURING CORP SAID RICHARD GILLMAN STEPPED DOWN AS PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR OF THE CASINO AND FITNESS CENTER OPERATOR AND FROM HIS POSTS AS CHAIRMAN AND CHIEF EXECUTIVE OF BALLY'S NEW JERSEY CASINO OPERATIONS MR GILLMAN 61 YEARS OLD RESIGNED IN ORDER TO DEVOTE FULL TIME TO HIS POSITIONS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BALLY GAMING INTERNATIONAL INC HE HAS FILLED THOSE ROLES SINCE BALLY MANUFACTURING SPUN OFF THE LAS VEGASBASED MAKER OF GAMBLING EQUIPMENT IN 1991 ARTHUR GOLDBERG BALLY MANUFACTURING'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ADDITIONALLY ASSUMED THE PRESIDENCY AS WELL AS THE CHAIRMAN AND CHIEF EXECUTIVE JOBS AT THE NEW JERSEY CASINO OPERATION 9301120147 930112 ASHLAND COAL STOCK PLAN HUNTINGTON WVA ASHLAND COAL INC SAID IT WILL OFFER A VOLUNTARY PLAN FOR SHAREHOLDERS WHO WANT TO REINVEST THEIR DIVIDENDS IN COMMON STOCK ABOUT 250000 COMMON SHARES ARE BEING SET ASIDE FOR THE PLAN A SPOKESMAN SAID 9301120146 930112 STEWART ENTERPRISES OFFERING METAIRIE LA STEWART ENTERPRISES INC SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 21 MILLION SHARES OF CLASS A COMMON STOCK THE SHARES INCLUDING 300000 SHARES TO BE OFFERED BY A PRINCIPAL SHAREHOLDER WILL BE SOLD THROUGH AN UNDERWRITING SYNDICATE COMANAGED BY BEAR STEARNS & CO AND JOHNSON RICE & CO THE SHAREHOLDER WASN'T IDENTIFIED THERE ARE 91 MILLION CLASS A SHARES OUTSTANDING AND 790000 CLASS B SHARES OUTSTANDING THE RIGHTS OF THE CLASS B SHARES INCLUDE 10FOR1 VOTING RIGHTS AND THEY ARE NOT CONVERTIBLE TO CLASS A SHARES WHICH CARRY 1FOR1 VOTING RIGHTS STEWART OWNS AND OPERATES 50 FUNERAL HOMES AND 44 CEMETERIES IN 10 STATES 9301120145 930112 WHO'S NEWS LAKE SHORE BANCORP LAKE SHORE BANCORP CHICAGO JAMES W ALDRICH 52YEAROLD FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LASALLE NORTHWEST NATIONAL BANK WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY AND ITS LAKE SHORE NATIONAL BANK UNIT SUCCEEDING WILLIAM C MITCHELL WHO IS RETIRING 9301120144 930112 COMAIR POSTS TRAFFIC GAINS CINCINNATI COMAIR HOLDINGS INC SAID DECEMBER TRAFFIC AT ITS COMAIR AIRLINE UNIT ROSE 19 TO 436 MILLION REVENUE PASSENGER MILES FROM 366 MILLION IN DECEMBER 1991 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE REGIONAL AIRLINE HOLDING COMPANY SAID 191910 PASSENGERS BOARDED THE AIRLINE LAST MONTH A 14 INCREASE FROM 167924 THE YEAR BEFORE 9301120143 930112 CANADIAN HOUSING STARTS RISE OTTAWA CANADIAN HOUSING STARTS ROSE 35 IN DECEMBER TO A SEASONALLY ADJUSTED ANNUAL RATE OF 178000 FROM A NOVEMBER RATE OF 172000 CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID THE AGENCY SAID THE NEW HOUSING MARKET HAS SHOWED RESILIENCE IN THE FACE OF HIGHER MORTGAGE INTEREST RATES SINCE OCTOBER 9301120142 930112 MERCK BOARD CLEARS PLAN TO REPURCHASE 1 BILLION OF STOCK RAHWAY NJ WITH ITS SHARES LANGUISHING NEAR THEIR 52WEEK LOW MERCK & CO SAID ITS BOARD APPROVED A PLAN TO REPURCHASE AN ADDITIONAL 1 BILLION OF STOCK SHARES OF THE DRUG CONCERN LIKE THOSE OF OTHER LARGE PHARMACEUTICAL COMPANIES HAVE BEEN PRESSURED BY CONCERN THAT THE CLINTON ADMINISTRATION WILL KEEP A TIGHT LID ON DRUG AND OTHER HEALTHCARE COSTS MERCK'S SHARES ROSE 75 CENTS TO 4325 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON NEWS OF THE BUYBACK WHICH PAINEWEBBER ANALYST RONALD NORDMANN CALLED A REAL SIGN OF OPTIMISM ON THE PART OF MERCK'S MANAGEMENT THIS IMPLIES THE FINANCIAL FOLKS AT MERCK THINK THEIR STOCK IS ATTRACTIVELY PRICED MR NORDMANN SAID NOTING THE STOCK IS TRADING AT A MODEST PREMIUM TO THE BROADER STOCK MARKET HE EXPECTS THE COMPANY'S EARNINGS TO CLIMB ABOUT 16 TO AN ESTIMATED 250 A SHARE IN 1993 FROM AN ESTIMATED 215 A SHARE IN 1992 AND SAYS THE SHARES SHOULD CONTINUE TO COMMAND A PREMIUM MERCK WHICH HAS ABOUT 12 BILLION SHARES OUTSTANDING SPENT 35 BILLION FROM 1985 TO 1992 TO ACQUIRE 196 MILLION SHARES THROUGH REPURCHASE PROGRAMS NONETHELESS MR NORDMANN SAID HE DOESN'T EXPECT TO SEE A SPATE OF BUYBACK ANNOUNCEMENTS FROM OTHER PHARMACEUTICAL COMPANIES SINCE MANY ARE CURRENTLY IN THE MIDST OF COMPLETING REPURCHASE PROGRAMS MERCK SAID THE SHARES ACQUIRED WILL BE AVAILABLE FOR USE UNDER THE COMPANY'S EMPLOYEE BENEFIT PROGRAMS AND FOR OTHER GENERAL CORPORATE PURPOSES 9301120141 930112 MARATHON OIL FINDS CONDENSATE HOUSTON MARATHON OIL CO THE OIL UNIT OF USX CORP IN PITTSBURGH SAID IT FOUND CONDENSATE AND GAS IN TWO AREAS OF THE NORTH SEA THE 16/7AB20 WELL WAS DRILLED FROM THE BRAE B PLATFORM ON THE NORTH BRAE FIELD 155 MILES NORTHEAST OF ABERDEEN SCOTLAND THE WELL FLOWED AT A DAILY RATE OF 30 MILLION CUBIC FEET OF NATURAL GAS AND 4000 BARRELS OF CONDENSATE AT A FLOWING TUBING PRESSURE OF 4300 PSI THROUGH A 15INCH CHOKE THE WELL HIT ABOUT 200 FEET OF NET HYDROCARBON PAY IN MIDDLE JURASSIC SANDSTONES AT DEPTHS BETWEEN 14300 AND 14600 FEET MARATHON SAID THE WELL'S YIELD IS ENCOURAGING ADDING THE COMPANY IS CONDUCTING AN EXTENDED PRODUCTION TEST TO EVALUATE THE FIELD'S POTENTIAL 9301120140 930112 SOUTHWEST AIR TRAFFIC UP DALLAS SOUTHWEST AIRLINES SAID ITS DECEMBER TRAFFIC ROSE 17 FROM A YEAR AGO THE AIRLINE FLEW 113 BILLION REVENUE PASSENGER MILES UP FROM THE PRIOR DECEMBER'S 9693 MILLION A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 613 FROM 622 FOR 1992 SOUTHWEST'S TRAFFIC INCREASED BY 22 TO 1379 BILLION REVENUE PASSENGER MILES FROM 1131 BILLION FOR 1991 LOAD FACTOR ROSE TO 645 FROM 611 9301120139 930112 A NEW MARKET FOR PAPER SHREDDERS MAY BE OPENING UP IN SWITZERLAND BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SWITZERLAND OFFICIALS HERE HAVE ENDED THE PREVIOUSLY SACROSANCT RULE OF SECRECY NOT ON NUMBERED BANK ACCOUNTS ON GARBAGE TRASH COLLECTORS HAVE BEEN GIVEN DRACONIAN POWERS UNDER A NEW CITY ORDINANCE AIMED AT FORCING THE SWISS TO RECYCLE SORT OR PAY IS THE OFFICIAL LINE ONTO THE RUBBISH HEAP HAS GONE THE OLD SYSTEM UNDER WHICH EACH HOUSEHOLD PAID A FLAT FEE NO MATTER HOW MUCH TRASH HAD TO BE HAULED AWAY THAT PROVIDED NO INCENTIVE TO WEED OUT THE CANS AND BOTTLES FROM THE FISH HEADS AND COFFEE GROUNDS NOW HOMEMAKERS HERE WILL HAVE TO PUT GARBAGE IN DESIGNER BAGS MARKETED BY THE CITY IN SIZES EASILY IDENTIFIED BY ABSTRACT PATTERNS IN PINK YELLOW BLUE OR RED INSPECTORS WILL TRACK DOWN PEOPLE WHO DON'T USE THE SPIFFY NEW SACKS AND HIT THEM WITH FINES THE CITY HOPES THAT THE FINES THE VOLUMEBASED CHARGES AND THE RELATIVELY HIGH COST OF THE STYLISH SACKS ROUGHLY SEVEN TIMES MORE THAN THE OLD GREY BAGS SOLD BY STORES WILL MOVE HOUSEHOLDS TO WASTE LESS AND RECYLE MORE SOME THINK THE NEW ORDINANCE IS JUST PLAIN RUBBISH FOR EXAMPLE THE DENNER AG DISCOUNTSTORE CHAIN CONTENDS THAT MAKING ONE SET OF GARBAGE BAGS COMPULSORY IS UNCONSTITUTIONAL THE CHAIN IS APPEALING THE ORDINANCE IN THE COURTS OTHER PEOPLE SAY SEARCHING PEOPLE'S GARBAGE IS GOING TOO FAR DO WE LIVE IN A POLICE STATE ASKS A BEAUTICIAN COLLECTORS HAVE INSTRUCTIONS TO SEARCH THROUGH ANY OLD BAGS LEFT IN THE STREET FOR EVIDENCE THAT WILL IDENTIFY OFFENDERS AN ENVELOPE WITH AN ADDRESS FOR EXAMPLE SAYS RUDOLPH WALDER THE CITY'S GARBAGEDISPOSAL CZAR THEN WE WILL HIT THEM WITH A 100FRANC 67 FINE AND IF THEY KEEP ON DOING IT WE'LL INFORM THE POLICE PSYCHOLOGIST KATI SPILLMANN SAYS SHE FINDS THE ORDINANCE A BIT PATHOLOGICAL SHE ADDS SWISS LIKE THINGS TO BE NEAT IT IS DRUMMED INTO THEM IN THE CRUCIAL LEARNING YEARS AND LIVES WITH THEM FOREVER BUT SEARCHING PEOPLE'S GARBAGE THE SWISS WILL HATE IT AND THEY'RE SMART ENOUGH TO PILE THE RUBBISH INTO THE BAGS AND KEEP THEIR NAMES OUT OF IT THE GLAMOROUS NEW SACKS HOWEVER HAVE A FOLLOWING I LIKE A TOUCH OF COLOR SAYS A RECEPTIONIST AS SHE EXAMINES A 110LITER BAG THAT SPORTS HUGE PINK SPLOTCHES A PANORAMA OF GARBAGE SHOULD BE ATTRACTIVE SAYS MR WALDER WE WANT OUR BAGS TO HAVE EMOTIONAL APPEAL 9301120138 930112 FIRST UNION MERGER IS APPROVED CHARLOTTE NC FIRST UNION CORP SAID IT HAS RECEIVED FEDERAL RESERVE BOARD APPROVAL TO MERGE DOMINION BANKSHARES CORP INTO A SUBSIDIARY OF FIRST UNION FIRST UNION AGREED TO ACQUIRE DOMINION IN SEPTEMBER IN A STOCK SWAP THEN VALUED AT ABOUT 830 MILLION THE ACQUISITION IS SCHEDULED TO BE COMPLETED IN THE FIRST QUARTER SUBJECT TO OTHER CONDITIONS OF CLOSING INCLUDING OTHER REGULATORY APPROVALS FIRST UNION HAS ABOUT 483 BILLION IN ASSETS WHILE DOMINION BANKSHARES OF ROANOKE VA HAS ABOUT 89 BILLION IN ASSETS 9301120137 930112 INTERNATIONAL VOLKSWAGEN DEAL TO BE STUDIED BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT WILL BEGIN A PRELIMINARY INVESTIGATION INTO GERMAN AUTO COMPANY VOLKSWAGEN AG'S TAKEOVER OF UK DISTRIBUTOR VAG LTD VAG THE UK IMPORTER AND DISTRIBUTOR OF VOLKSWAGEN AND AUDI CARS WAS PURCHASED FROM LONRHO PLC IN DECEMBER THE PURCHASE IS THE LATEST IN A SERIES OF VW MOVES TO TAKE CONTROL OF ITS FOREIGN IMPORT AND DISTRIBUTION UNITS A VW SPOKESMAN SAID THE COMMISSION HAS FOUR WEEKS TO DECIDE WHETHER THE LINKUP COULD HARM COMPETITION IN EC MARKETS IF IT FINDS SERIOUS DOUBTS ABOUT THE TRANSACTION IT MUST LAUNCH A DEEPER FOURMONTH STUDY THE COMMISSION CAN ALTER OR BLOCK LINKUPS THAT WOULD WEAKEN COMPETITION 9301120136 930112 REVIEW & OUTLOOK EDITORIAL ASIDES WATCHDOGS IN THRALL AT A NOVEMBER MEETING OF THE SOCIETY OF ENVIRONMENTAL JOURNALISTS A PRESS CONFERENCE WAS HELD BY SIERRA CLUB OFFICIAL AND CLINTON ADVISER BRETT HULSEY NOTING THE EVENT THE LATEST ISSUE OF TJFR BUSINESS NEWS REPORTER A TRADE LETTER CONFIRMS A SUSPICION ABOUT SOME ON THE ECOLOGY BEAT MR HULSEY'S FIRST WORDS UPON ASCENDING THE PODIUM WERE HOW SWEET IT IS' REFERRING OF COURSE TO THE VICTORY OF THE CLINTON/GORE TICKET WHILE SEASONED POLITICAL REPORTERS LIKELY WOULD HAVE GREETED SUCH A PARTISAN UTTERANCE WITH BOOS AND HISSES MANY OF THE VETERAN ENVIRONMENTAL REPORTERS PRESENT CHEERED AND WHISTLED MR HULSEY RETURNED THE ADORATION BY CREDITING THE MEDIA WITH HELPING TO MAKE THE 1992 ELECTION AN ISSUESORIENTED' CAMPAIGN HE FURTHER PLEDGED A PESTICIDEFREE ROSE GARDEN 9301120135 930112 BIG BOARD SEAT FETCHES 500000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 500000 DOWN 25000 FROM THE PREVIOUS SALE DEC 15 SEATS ARE CURRENTLY QUOTED AT 455000 BID AND 550000 OFFERED 9301120134 930112 CLINTON'S REAL DEFICIT TEST BY DANIEL J MITCHELL EVEN THOUGH HE IS BACKING AWAY FROM HIS PROMISE TO HALVE THE DEFICIT WITHIN FOUR YEARS PRESIDENTELECT CLINTON ARDENTLY MAINTAINS HE IS DETERMINED TO REDUCE GOVERNMENT BORROWING THIS COMMITMENT SUPPOSEDLY HAS BEEN DEMONSTRATED BY HIS SELECTION OF TWO DEFICIT HAWKS FORMER HOUSE BUDGET COMMITTEE CHAIRMAN LEON PANETTA AND FORMER CONGRESSIONAL BUDGET OFFICE DIRECTOR ALICE RIVLIN AS DIRECTOR AND DEPUTY DIRECTOR RESPECTIVELY OF THE OFFICE OF MANAGEMENT AND BUDGET IF MR CLINTON TRULY IS CONCERNED ABOUT THE DEFICIT HOWEVER HE WILL TAKE ADVANTAGE OF A LITTLEKNOWN LEGAL PROVISION THAT GIVES HIM THE POWER ON JAN 21 TO REINSTATE THE 1985 GRAMMRUDMANHOLLINGS DEFICIT REDUCTION ACT WHEN PRESIDENT BUSH AGREED TO THE 1990 BUDGET DEAL HE SIMULTANEOUSLY APPROVED BUDGET PROCESS REFORMS THAT ELIMINATED AT LEAST TEMPORARILY THE LEGALLY MANDATED MAXIMUM DEFICIT AMOUNTS THAT WERE THE KEY FEATURE OF GRAMMRUDMAN AS A RESULT INSTEAD OF FIXED DEFICIT TARGETS DESIGNED TO BALANCE THE BUDGET BY 1993 THE NEW BUDGET LAW CREATED FLOATING TARGETS THAT AUTOMATICALLY EXPAND TO ACCOMMODATE HIGHER DEFICITS CAUSED BY ECONOMIC AND TECHNICAL REESTIMATES FREED FROM THE CONFINES OF GRAMMRUDMAN SPENDING GROWTH HAS DRAMATICALLY INCREASED TOTAL INFLATIONADJUSTED DOMESTIC SPENDING WHICH GREW BY AN AVERAGE OF 11 ANNUALLY IN THE FIVE YEARS GRAMMRUDMAN WAS IN EFFECT HAS GROWN BY AN AVERAGE OF 73 A YEAR SINCE 1990 SPENDING CAPS SUPPOSEDLY CONSTRAIN DISCRETIONARY SPENDING YET CONSTANTDOLLAR DOMESTIC DISCRETIONARY SPENDING IS GROWING MORE THAN FIVE TIMES FASTER UNDER THE BUDGET ENFORCEMENT ACT THAN IT DID UNDER GRAMMRUDMAN DOMESTIC ENTITLEMENT SPENDING SAID TO BE UNCONTROLLABLE INCREASED BY AN AVERAGE OF LESS THAN 5 BILLION ANNUALLY UNDER GRAMMRUDMAN IN CONSTANT 1987 DOLLARS SINCE GRAMMRUDMAN'S DEMISE HOWEVER INFLATIONADJUSTED ENTITLEMENT SPENDING HAS EXPLODED INCREASING BY AN AVERAGE OF 388 BILLION EACH YEAR MR CLINTON CAN REVERSE MR BUSH'S BLUNDER THE LAW SPECIFIES THAT WHOEVER IS PRESIDENT ON JAN 21 OF THIS YEAR HAS UNILATERAL AUTHORITY TO SUSPEND THE ECONOMIC AND TECHNICAL REESTIMATES LOOPHOLE EFFECTIVELY REINSTATING GRAMMRUDMAN IN ONE FELL SWOOP MR CLINTON CAN GUARANTEE THAT REAL DEFICIT REDUCTION WILL TAKE PLACE IN THE COMING FISCAL YEAR BUDGET PROJECTIONS JUST RELEASED BY THE BUSH ADMINISTRATION PREDICT THAT CONTINUATION OF EXISTING BUDGET POLICIES WILL RESULT IN A 2924 BILLION BUDGET DEFICIT IN FISCAL 1994 IF MR CLINTON CHOOSES TO RESTORE GRAMMRUDMAN HOWEVER THE DEFICIT WOULD BE CAPPED AT 2699 BILLION CONGRESS THUS WOULD BE FORCED EITHER TO PRODUCE A DEFICITREDUCTION PACKAGE IN ACCORDANCE WITH THE LAW OR ACCEPT AUTOMATIC CUTS SEQUESTRATION TOTALING 224 BILLION EVEN BETTER THE FISCAL 1995 DEFICIT ESTIMATED TO TOTAL 2724 BILLION UNDER CURRENT POLICIES WOULD BE REPLACED BY A GRAMMRUDMAN MAXIMUM DEFICIT AMOUNT OF 2296 BILLION A SAVINGS OF 428 BILLION NOTWITHSTANDING THE SIGNIFICANT SLOWDOWN IN FEDERAL SPENDING WHEN GRAMMRUDMAN WAS IN EFFECT CRITICS ASSERT THAT THE LAW WAS A FAILURE BECAUSE ANNUAL DEFICITS ALWAYS EXCEEDED THE MAXIMUM DEFICIT AMOUNT THE REASON FOR THE DISPARITIES HOWEVER IS THAT GRAMMRUDMAN MANDATED ONLY THAT THE ESTIMATED BUDGET DEFICIT TWO WEEKS INTO THE FISCAL YEAR BE WITHIN 10 BILLION OF THE TARGET BY USING OPTIMISTIC ECONOMIC ASSUMPTIONS ACCOUNTING GIMMICKS AND BUDGET TRICKS CONGRESS WAS ABLE TO UNDERESTIMATE SPENDING AND OVERESTIMATE REVENUES EVERY YEAR THUS INCREASING THE AMOUNT OF MONEY THEY COULD SPEND WITHOUT TRIGGERING A SEQUESTER THIS INDICATES THAT A GOOD LAW SHOULD BE MADE EVEN BETTER PERHAPS BY INCLUDING A MIDYEAR SEQUESTER THE BIGGEST OBSTACLE TO REINSTATING GRAMMRUDMAN MAY BE LEON PANETTA MR CLINTON'S CHOICE FOR OMB DIRECTOR AS CHAIRMAN OF THE HOUSE BUDGET COMMITTEE IN 1990 MR PANETTA WAS ONE OF MANY DEMOCRATS CALLING FOR THE REPEAL OF GRAMMRUDMAN LAST YEAR HE INTRODUCED LEGISLATION THAT WOULD HAVE ALLOWED AUTOMATIC TAX INCREASES WHENEVER CONGRESS FAILED TO COMPLY WITH DEFICIT REDUCTION REQUIREMENTS IN OTHER WORDS BY REFUSING TO CONTROL SPENDING LEGISLATORS COULD TRIGGER TAX INCREASES THAT COULD BE USED TO INCREASE SPENDING EVEN MORE ALL WITHOUT EVER HAVING TO VOTE FOR HIGHER TAXES DESPITE MR PANETTA'S REPUTATION AS A DEFICIT HAWK HIS PREDILECTION FOR HIGHER TAXES IS NOT MATCHED BY AVERSION TO FEDERAL SPENDING ACCORDING TO THE THREE MOST RECENT VOTE RATINGS COMPILED BY THE NONPARTISAN NATIONAL TAXPAYERS UNION MR PANETTA WAS MORE LIKELY TO VOTE FOR DEFICIT SPENDING THAN THE AVERAGE DEMOCRAT IN THE HOUSE A RATHER DUBIOUS ACHIEVEMENT APPOINTMENTS OF PEOPLE LIKE MR PANETTA COMBINED WITH CAMPAIGN PROMISES TO RAISE TAXES BY 150 BILLION AND INCREASE SPENDING BY 220 BILLION OVER THE NEXT FOUR YEARS SUGGEST THAT MR CLINTON WILL NOT REINSTATE GRAMMRUDMAN MR CLINTON HOWEVER IS AN ASTUTE POLITICIAN AND EVERY DECISION HE MAKES WILL BE INFLUENCED BY ITS PERCEIVED IMPACT ON THE 1996 ELECTIONS THE REAL QUESTION IS WHICH MODEL OF LEADERSHIP AND GOVERNING MR CLINTON WANTS TO MIMIC THE LOWTAX LIMITED GOVERNMENT RECORDS OF JOHN F KENNEDY AND RONALD REAGAN OR THE FAILED BIG GOVERNMENT POLICIES OF JIMMY CARTER AND GEORGE BUSH THE ANSWER WILL COME ON JAN 21 MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION IN WASHINGTON 9301120132 930112 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK LOLA A SIGNOM 48 YEARS OLD WAS NAMED VICE PRESIDENT OF THE INFORMATION PRODUCTS DIVISION AT NCR CORP THE DAYTON OHIOBASED COMPUTER UNIT OF THIS TELECOMMUNICATIONS CONCERN MS SIGNOM WHO WAS ASSISTANT VICE PRESIDENT OF THE STAKEHOLDER RELATIONS DIVISION SUCCEEDS L ROBERT CORCOS 53 WHO RECENTLY WAS NAMED VICE PRESIDENT OF CORPORATE MARKETING AND STRATEGIC PLANNING AT NCR 9301120130 930112 CONNECTICUT PLAN SEEKS TO FOSTER PHONE COMPETITION BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW BRITAIN CONN STATE UTILITY REGULATORS PROPOSED THAT CONNECTICUT'S MAJOR TELEPHONE COMPANY SPEND 400 MILLION OVER FOUR YEARS TO IMPROVE ITS TELECOMMUNICATIONS INFRASTRUCTURE THE DEPARTMENT OF PUBLIC UTILITY CONTROL ALSO CALLED FOR GREATER COMPETITION ESPECIALLY ON INSTATE LONGDISTANCE CALLING AND IN PRINCIPLE CALLED FOR RESIDENTIAL CUSTOMERS TO PAY A GREATER SHARE OF TELEPHONE SERVICE COSTS IN CONNECTICUT THE PROPOSED PLAN WOULD REQUIRE SOUTHERN NEW ENGLAND TELEPHONE CO A UNIT OF SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP TO INVEST ABOUT 100 MILLION A YEAR ABOVE ITS REGULAR PLANT MAINTENANCE COSTS OF ABOUT 200 MILLION A YEAR THE RULING APPEARED TO SUGGEST THAT SNET WOULD NEED TO BOOST RATES BY 60 MILLION A YEAR TO SUPPORT THE PLAN BUT IT DIDN'T INDICATE HOW THE COMPANY SHOULD FINANCE THE REMAINDER SNET SAID THE DECISION APPEARS TO REPRESENT A GOOD BALANCE AMONG THE COMPETING ISSUES REGULATORS PICKED AN SNET PROPOSAL FROM AMONG FOUR OPTIONS CALLING FOR INCREASED SPENDING ON TELECOMMUNICATIONS HARDWARE AND SYSTEMS THEY REJECTED A FAR MORE EXPENSIVE EIGHTYEAR 3 BILLION PLAN PROPOSED IN A STUDY THE DEPARTMENT HAD COMMISSIONED AND THEY REJECTED A 300 MILLION FOURYEAR PLAN DRAFTED BY THE STATE'S CONSUMER COUNSEL THE DEPARTMENT HAS BEEN LOOKING INTO CONCERNS THAT CONNECTICUT'S TELECOMMUNICATIONS STRUCTURE HASN'T BEEN COMPETITIVE WITH NEIGHBORING STATES THE LATEST RULING WON'T BECOME FINAL UNTIL REGULATORS COMPLETE WORK ON A RELATED THREEYEAR 160 MILLION RATE REQUEST BY SNET THAT DECISION IS EXPECTED IN LATE SPRING THE CURRENT PROPOSAL WOULD CALL FOR QUICKER ADOPTION OF SS7 SWITCHING TECHNOLOGY CRAVED BY BUSINESSES FOR ITS DATA AND VOICE CAPABILITIES IT ALSO WOULD REQUIRE AVAILABILITY OF FIBEROPTIC TRANSMISSION SERVICE BY THE YEAR 2000 THE DEPARTMENT ADDED THAT LEGISLATIVE CHANGES WOULD BE REQUIRED FOR NEW REGULATORY STRUCTURES SUCH AS PRICE CAPS UNDER TRADITIONAL RATE REGULATIONS THE DEPARTMENT ALLOWS A CERTAIN RATE OF RETURN ON INVESTMENT PRICE CAPS HOWEVER SET MAXIMUM PRICES FOR SERVICES AND WOULD ALLOW SNET GREATER PRICE LATITUDE IN TRYING TO MEET COMPETITION IN A PROPOSAL SIMILAR TO PREVIOUS SNET SUGGESTIONS THE DEPARTMENT SAID BUSINESSES WOULD NO LONGER BE ASKED TO SUBSIDIZE RESIDENTIAL RATES UNDER CURRENT RATES BUSINESSES PAY THREE TIMES AS MUCH AS RESIDENTS FOR SIMILAR SERVICES THE DEPARTMENT ALSO CALLED FOR A MORE EQUITABLE INSTATE LONGDISTANCE RATE STRUCTURE CURRENTLY A CALL FROM HARTFORD TO STAMFORD CONN CAN COST MORE THAN A CALL FROM HARTFORD TO LOS ANGELES THE CURRENT RATE REQUEST BY SNET ADDRESSES SOME OF THESE RATE PROBLEMS 9301120128 930112 XENOVA PRIVATELY PLACES EQUITY LONDON XENOVA GROUP PLC A SLOUGH ENGLANDBASED BIOTECHNOLOGY COMPANY SAID IT RAISED 303 MILLION MOST OF IT FROM US INVESTORS THROUGH A PRIVATE EQUITY PLACEMENT IT IS ONE OF THE LARGEST FINANCINGS BY A EUROPEAN BIOTECHNOLOGY COMPANY EVER COMPLETED IN THE US WE CAME TO THE US AS A STRATEGIC MOVE TO DEVELOP OUR SHAREHOLDER BASE IN THE US SAID TREVOR TWOSE THE COMPANY'S DIRECTOR OF CORPORATE PLANNING AND DEVELOPMENT EIGHTYFIVE PERCENT OF THE OFFERING WAS PLACED WITH THE RETAIL CUSTOMERS OF THE SALES AGENT FOR THE PRIVATE PLACEMENT PAINEWEBBER INC FOUNDED IN 1987 XENOVA DEVELOPS NEW DRUGS DERIVED FROM FUNGI BACTERIA AND PLANTS NONE OF ITS PRODUCTS HAVE YET REACHED THE MARKET THE COMPANY INTENDS TO USE THE PROCEEDS OF THE LATEST OFFERING TO INVEST IN THREE NEW PRODUCTS ONE ON WHICH IT HOPES TO BEGIN CLINICAL TESTING BY NEXT YEAR 9301120127 930112 MARKETING & MEDIA ABC NEWS NAMES FRIEDMAN NO2 UNDER ARLEDGE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ABC NEWS NAMED WORLD NEWS TONIGHT EXECUTIVE PRODUCER PAUL FRIEDMAN WHO LED THE NEWSCAST TO ITS DOMINANT LEAD IN THE RATINGS THE NEWS DIVISION'S NO 2 EXECUTIVE UNDER PRESIDENT ROONE ARLEDGE THE ANNOUNCEMENT THE FIRST OF SEVERAL EXECUTIVE CHANGES EXPECTED AT THE NEWS DIVISION COMES AFTER SEVERAL WEEKS OF INTENSE INTERNAL DEBATE OVER HOW TO RESTRUCTURE ABC NEWS MANAGEMENT CAPITAL CITIES/ABC INC'S CHIEF DANIEL BURKE AND OTHER EXECUTIVES BELIEVE THE CURRENT STRUCTURE IN WHICH SEVERAL TOP EXECUTIVES JOINTLY HANDLE MOST ISSUES IS TOO VAGUE FOR THE EXPANDING DIVISION MR FRIEDMAN WHO HAS BEEN IN CHARGE OF THE EVENING NEWSCAST FOR FIVE YEARS SUCCEEDS EXECUTIVE VICE PRESIDENT STEPHEN A WEISWASSER WHO IS EXPECTED TO MOVE TO A NOTYETSPECIFIED CORPORATE POST AT CAPITAL CITIES/ABC IN A FEW MONTHS MR WEISWASSER WHO IS ALSO A SENIOR VICE PRESIDENT AT CAPITAL CITIES/ABC WAS BROUGHT IN TO ABC NEWS IN 1991 AMID MUCH GRUMBLING INSIDE THE DIVISION TO OVERSEE A FINANCIAL STREAMLINING INCLUDING LAYOFFS BUREAU CLOSINGS AND DIFFICULT CONTRACT NEGOTIATIONS HIS STAY AT ABC NEWS WAS DESIGNED TO BE A LIMITED ONE EXECUTIVES SAID MR FRIEDMAN SPENT 14 YEARS AT NBC NEWS BEFORE JOINING ABC NEWS IN 1982 HE WAS ELEVATED TO THE POST OF WORLD NEWS TONIGHT EXECUTIVE PRODUCER IN 1988 IN 1989 THE PROGRAM ANCHORED BY PETER JENNINGS MOVED INTO FIRST PLACE IN THE RATINGS THERE IT HAS REMAINED ALTHOUGH MR FRIEDMAN HAS BEEN NEGOTIATING FOR HIS NEW POST FOR NEARLY A YEAR EXECUTIVES WERE RELUCTANT TO MAKE ANY MOVES UNLESS CONTINUED SUCCESS OF THE EVENING NEWSCAST COULD BE GENERALLY ASSURED NO SUCCESSOR HAS YET BEEN CHOSEN FOR MR FREIDMAN HOWEVER MR JENNINGS LAST WEEK SIGNED A NEW FIVEYEAR CONTRACT IN AN INTERVIEW MR ARLEDGE SAID HE CONSIDERS MR FRIEDMAN TO BE ONE OF SEVERAL POTENTIAL CANDIDATES TO SUCCEED HIM AS PRESIDENT OF THE NEWS DIVISION WHICH OPERATES ON AN ANNUAL BUDGET OF ABOUT 300 MILLION AND IS A SUBSTANTIAL PROFIT CENTER FOR THE NETWORK MR ARLEDGE SAID MR FRIEDMAN'S CHALLENGE WILL BE TO MAINTAIN THE SUCCESS OF CURRENT PROGRAMS WHILE OVERSEEING THE LAUNCH OF A THIRD PRIMETIME NEWS MAGAZINE ON MARCH 7 AS WELL AS ANOTHER SUCH SHOW WHICH WILL ALSO MAKE A DEBUT IN 1993 FURTHERMORE THE NEWS DIVISION IS SEEKING TO EXPAND ITS INTERNATIONAL ACTIVITIES MR ARLEDGE SAID AND IS LOOKING AT OTHER OUTLETS FOR ITS PRODUCT SUCH AS CABLE HOWEVER GROWTH MUST BE UNDERTAKEN AT A TIME WHEN ABC NEWS LOOKS TO CUT ITS STAFF BY AN UNSPECIFIED AMOUNT AS PART OF A CORPORATE BUYOUT BEING CONDUCTED BY THE ABC TELEVISION NETWORK EVEN THOUGH WE ARE DOING VERY WELL MR ARLEDGE SAID THERE'S A SENSE THAT WE NEED TO BE AS EFFICIENT AS POSSIBLE 9301120126 930112 KODAK UNIT GETS DRUG APPROVAL NEW YORK EASTMAN KODAK CO'S STERLING WINTHROP DRUG UNIT SAID IT RECEIVED US APPROVAL TO MARKET OMNISCAN INJECTION A CONTRAST AGENT USED FOR MAGNETIC RESONANCE IMAGING OF THE NERVOUS SYSTEM OMNISCAN WAS APPROVED FOR MARKETING IN THE UNITED KINGDOM EARLIER THIS YEAR THE DRUG WILL BE MARKETED BY SANOFI WINTHROP PHARMACEUTICALS A JOINT VENTURE OF STERLING AND FRANCE'S ELF SANOFI KODAK IS A PHOTOGRAPHY CHEMICALS AND HEALTH CONCERN BASED IN ROCHESTER NY 9301120125 930112 FORMER BROKERS AT COLORADO OFFICE ARE FINED BY NASD BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FINED SEVEN FORMER EMPLOYEES OF NATIONAL SECURITIES CORP A TOTAL OF 712000 FOR THEIR ROLE IN A 1990 INVESTMENT SCHEME THE NASD WHICH OPERATES AND REGULATES THE OVERTHECOUNTER STOCK MARKET ALSO FINED THE SEATTLE BROKERAGE FIRM 80000 FOR FAILING TO SUPERVISE THE FORMER EMPLOYEES WHO WORKED IN A BRANCH OFFICE IN ENGLEWOOD COLO THE NASD BARRED WILLIAM SHEPPARD FORMER MANAGER OF THE ENGLEWOOD OFFICE AND FINED HIM 500000 FOR HIS ROLE IN A 1990 SCHEME INVOLVING THE STOCK OF VINTAGE GROUP INC A BUSINESS DEVELOPMENT GROUP FORMERLY BASED IN SAN RAPHAEL CALIF THE NASD CHARGED THAT MR SHEPPARD AND SEVERAL OTHER BROKERS USED CUSTOMERS' FUNDS TO BUY VINTAGE'S STOCK AND THEN USED THEIR PURCHASES TO DRIVE UP THE STOCK'S PRICE IN LESS THAN TWO MONTHS TO MORE THAN 5 A SHARE FROM BARELY MORE THAN 1 APIECE THE BROKERS CREATED PUBLIC DEMAND FOR THE STOCK THROUGH HIGHPRESSURE SALES TACTICS ADDED THE NASD WHICH HAS SINCE DELISTED VINTAGE FROM NASDAQ TRADING MR SHEPPARD WHO CAN'T BE FOUND AND HASN'T RESPONDED TO THE NASD'S REQUESTS FOR INFORMATION ALLEGEDLY MADE ABOUT 221000 FROM THE SCHEME IN A PREPARED STATEMENT NATIONAL SECURITIES SAID IT FULLY COOPERATED WITH THE NASD INVESTIGATION AND NOTED THAT THE FIRM WASN'T CHARGED WITH KNOWING OF THE ALLEGED VIOLATIONS NEITHER ADMITTING NOR DENYING GUILT NATIONAL SECURITIES AGREED TO THE FINE AND TO IMPROVE ITS SUPERVISORY PROCEDURES THE NASD ALSO FINED FORMER NATIONAL SECURITIES PRESIDENT JEFFREY J PRITCHARD 10000 FOR HIS FAILURE TO SUPERVISE THE ENGLEWOOD BROKERS MR PRITCHARD WHO IS NO LONGER EMPLOYED BY THE BROKERAGE FIRM COULDN'T BE REACHED FOR COMMENT ALSO CHARGED WERE LYNETTE M LARUE OF PARKER COLO WHO WAS FINED 150000 AND SUSPENDED FOR FIVE YEARS ROBERT F NAGLE DENVER FINED 5000 AND SUSPENDED FOR THREE YEARS ANDREW C BERRY DENVER FINED 20000 AND SUSPENDED FOR 30 DAYS BRUCE E MAUER EVERGREEN COLO SUSPENDED FOR TWO YEARS MARK A ANDERSON ARVADA COLO BARRED AND FINED 12000 BRIAN PAUL GENTRY ALSO OF PARKER FINED 25000 AND SUSPENDED FOR TWO YEARS AND RICHARD L BLACKSTOCK ELIZABETH COLO SUSPENDED FOR 21 DAYS MR BERRY DECLINED TO COMMENT AND NONE OF THE OTHER INDIVIDUALS COULD BE REACHED FOR COMMENT 9301120124 930112 WASSERSTEIN'S ISTEL JOINS GLOBAL TEAM AT ROTHSCHILD GROUP NEW YORK YVESANDRES ISTEL FORMER CHAIRMAN OF WASSERSTEIN PERELLA & CO'S INTERNATIONAL DIVISION WAS NAMED VICE CHAIRMAN OF THE ROTHSCHILD GROUP'S US UNIT AND EUROPEAN CORPORATE FINANCE ARM THE PARISIANBORN MR ISTEL 56 YEARS OLD ALSO WILL BE NAMED A DIRECTOR OF ROTHSCHILD & CIE BANQUE BASED IN PARIS MR ISTEL'S DEPARTURE FROM WASSERSTEIN IS THE LATEST IN A SERIES OF DEFECTIONS FROM THE NEW YORK DEALMAKING FIRM WHICH HAS SEEN A DROP IN BUSINESS AS MERGERS AND ACQUISITIONS DECLINED IN AN INTERVIEW MR ISTEL SAID THAT LEAVING WASSERSTEIN WAS A DIFFICULT DECISION ADDING THAT HE THINKS THE FIRM'S BUSINESS IS ON THE UPSWING WITH A BACKLOG OF DEALS IN THE PIPELINE CALLING HIM A GOOD FRIEND WASSERSTEIN'S MANAGING DIRECTOR MICHAEL BIONDI SAID WE WISH HIM WELL NEVERTHELESS THE OPPORTUNITY WITH ROTHSCHILD'S INTERNATIONAL NETWORK OF MERGER SPECIALISTS WAS TOO GOOD TO PASS UP MR ISTEL SAID HE SAID HE EXPECTS TO SEE INCREASED MERGERS ACTIVITY WITHIN EUROPE AND BETWEEN EUROPEAN COMPANIES AND US CANADIAN AND MEXICAN FIRMS AT WASSERSTEIN HE WAS INSTRUMENTAL IN THE FRANCE TELECOM INVESTMENT IN TELEFONOS DE MEXICO SA AMONG OTHER TRANSATLANTIC DEALS 9301120123 930112 BUSINESS BRIEF COMERICA TO ACQUIRE FIRST OF MICHIGAN IN 45 MILLION DEAL DETROIT COMERICA INC SAID IT AGREED TO ACQUIRE FIRST OF MICHIGAN CAPITAL CORP A REGIONAL INVESTMENT BANKING CONCERN IN A 45 MILLION STOCK SWAP THE ACQUISITION IS PART OF A GROWING TREND OF COMMERCIAL BANKS ACQUIRING OR LINKING UP WITH INVESTMENT BANKING COMPANIES AS A MEANS TO SHORE UP EARNINGS WITH FEES GENERATED FROM INVESTMENT ACTIVITIES FIRST OF MICHIGAN ISN'T A MAJOR NATIONAL PLAYER IN UNDERWRITING SECURITIES ROUGHLY 11 OF ITS REVENUE IS GENERATED FROM UNDERWRITING STOCKS AND BONDS BUT WHILE THE ACQUISITION ONLY GIVES COMERICA A TOEHOLD IN THE SECURITIES MARKET FINANCIAL ANALYSTS SAID IT IS A FIRST STEP FOR COMERICA TOWARD BROADENING ITS SAVINGS OPTIONS TO SAY MUTUAL FUNDS OR SECURITIES WHILE COMERICA IS SEEKING REGULATORY APPROVAL FOR THE ACQUISITION THE REGIONAL BANKING CONCERN SAID IT WILL ALSO SEEK REGULATORY APPROVAL TO UNDERWRITE CORPORATE DEBT OR EQUITY A COMPANY SPOKESWOMAN SAID UNDER THE PROPOSED ACQUISITION FIRST OF MICHIGAN SHAREHOLDERS WILL RECEIVE 0558 COMERICA SHARE FOR EACH OF THEIR COMMON STOCK FIRST OF MICHIGAN WILL CONTINUE TO OPERATE UNDER ITS OWN NAME FIRST OF MICHIGAN POSTED FISCAL 1992 NET INCOME OF 47 MILLION EQUIVALENT TO ABOUT 3 OF COMERICA'S 1991 NET INCOME FOR THE ENTIRE YEAR FOR THE FIRST NINE MONTHS OF 1992 COMERICA POSTED NET INCOME OF 142 MILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY COMERICA SHARES FELL 375 CENTS TO 30375 9301120122 930112 TECHNOLOGY US CHIP INDUSTRY'S LEAD INDICATOR STAYED STRONG IN DECEMBER SAN JOSE CALIF THE SEMICONDUCTOR INDUSTRY HAD ANOTHER GOOD MONTH IN DECEMBER AS ITS LEADING INDICATOR REMAINED AT A STRONG 113 LEVEL THE INDUSTRY'S BOOKTOBILL RATIO FOR THE MONTH MATCHED NOVEMBER'S HEALTHY 113 LEVEL THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THAT MEANS THAT FOR EVERY 100 OF CHIPS SHIPPED THE INDUSTRY RECEIVED 113 OF ORDERS INDICATING ROBUST GROWTH CHIP ORDERS AND SHIPMENTS FUELED BY BOOMING PERSONAL COMPUTER SALES REACHED RECORDS IN DECEMBER ORDERS BASED ON A THREEMONTH MOVING AVERAGE TOTALED 192 BILLION UP 12 FROM NOVEMBER'S 189 BILLION AND UP 38 FROM LAST DECEMBER'S 139 BILLION SALES ALSO BASED ON A THREEMONTH AVERAGE TOTALED 17 BILLION UP 17 FROM NOVEMBER'S 167 BILLION AND UP 31 FROM LAST DECEMBER'S 13 BILLION 9301120121 930112 PEROT LAUNCHES FUND DRIVE FOR HIS UNITED WE STAND DALLAS IN HIS FIRST PUBLIC APPEARANCE SINCE THE ELECTION ROSS PEROT LAUNCHED A NATIONWIDE FUNDRAISING DRIVE FOR UNITED WE STAND THE VOLUNTEER ORGANIZATION THAT SUPPORTED HIS PRESIDENTIAL CANDIDACY AT A TELEVISED NEWS CONFERENCE HERE MR PEROT SAID HE WOULD APPEAR IN AS MANY AS 28 TELEVISION COMMERCIALS AND ON SEVERAL SHOWS TO PUBLICIZE THE EFFORT TO CONVERT UNITED WE STAND INTO A NONPROFIT PAID MEMBERSHIP ORGANIZATION THE GROUP'S PRIORITIES WHICH INCLUDE BALANCING THE FEDERAL BUDGET REDUCING THE INFLUENCE OF FOREIGN LOBBYISTS AND IMPROVING PUBLIC EDUCATION ECHO THE THEMES OF MR PEROT'S CANDIDACY THE TEXAS BILLIONAIRE SAID THE COMMERCIALS WOULD BEGIN JAN 25 AS A MEMBERSHIP ORGANIZATION UNITED WE STAND COULD ENDORSE CANDIDATES BUT NOT FIELD THEM AS IF IT WERE A POLITICAL PARTY ACCORDING TO A SPOKESWOMAN IN ADDITION IT WOULDN'T GIVE MONEY TO CANDIDATES OR LOBBY MEMBERS OF CONGRESS THE GROUP'S GOAL IS PRIMARILY EDUCATIONAL SHE SAID MR PEROT EMPHASIZED THAT HE WANTS THE GROUP TO BE A CONSTRUCTIVE VOICE AND HE DECLINED TO CRITICIZE PRESIDENTELECT CLINTON LET'S BE PATIENT HE SAID AND LET'S GIVE THEM A CHANCE 9301120120 930112 WHO'S NEWS IBM NAMES STEPHENSON TO RUN ASIAN OPERATIONS ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP NAMED ROBERT STEPHENSON 54 YEARS OLD TO RUN ITS GIANT ASIAN OPERATIONS MR STEPHENSON A VICE PRESIDENT AT THE COMPUTER GIANT PREVIOUSLY RAN A DIVISION CHARGED WITH MARKETING SOFTWARE TO THE FINANCIAL AND INSURANCE INDUSTRIES HE SUCCEEDS NED LAUTENBACH WHO WAS TAPPED LAST WEEK FOR A HEADQUARTERS JOB OVERSEEING ALL OF IBM'S INTERNATIONAL BUSINESS IBM SAID PAUL LOFTUS 38 WILL SUCCEED MR STEPHENSON IN THE SERVICES JOB MR LOFTUS HAD BEEN SECRETARY OF IBM'S MANAGEMENT COMMITTEE 9301120119 930112 CROSSBORDER MERGERS ROSE IN VALUE BY 30 IN 1992 NEW YORK INTERNATIONAL ACQUISITIONS INCREASED MORE THAN 30 IN VALUE LAST YEAR ALTHOUGH THE NUMBER OF DEALS DECLINED ACCORDING TO A SURVEY BY KPMG PEAT MARWICK THE VALUE OF CROSSBORDER ACQUISITIONS IN 1992 ROSE TO 726 BILLION FROM 544 BILLION IN 1991 ACCORDING TO THE INTERNATIONAL ACCOUNTING AND CONSULTING FIRM THE NUMBER OF ACQUISITIONS DECLINED 77 TO 1810 IN 1992 FROM 1960 IN 1991 THE VERY LARGE COMPANIES CONTINUED TO MAKE VERY LARGE DEALS SAID LENZ NEUHAUSER NATIONAL DIRECTOR OF MERGERS AND ACQUISITIONS AT KPMG BUT MEDIUMSIZED TO SMALL PLAYERS STILL AREN'T BACK IN THE M&A MARKETPLACE PHILIP MORRIS COS MADE THE BIGGEST DEAL OF THE YEAR ACCORDING TO THE SURVEY WITH ITS PURCHASE OF NORWEGIAN FOOD CONCERN FREIA MARABOU FOR 14 BILLION THAT WAS ONE OF 10 MEGADEALS LAST YEAR THAT WERE VALUED AT MORE THAN 1 BILLION COMPARED WITH ONLY TWO OF THAT SIZE IN 1991 US INVESTORS WERE THE BIGGEST ACQUIRERS IN 1992 SPENDING 133 BILLION ON 342 FOREIGN COMPANIES ACCORDING TO THE SURVEY THAT WAS UP 62 FROM 82 BILLION IN 1991 9301120118 930112 US STUDYING WHETHER FUNGUS TOXIN AFFECTING CORN FIELDS IS CARCINOGENIC BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE FEDERAL GOVERNMENT IS QUIETLY STUDYING WHETHER A FUNGUS COMMONLY FOUND IN MIDWEST CORN FIELDS IS CONTAMINATING FOOD WITH A SUSPECTED CARCINOGEN THE FOOD AND DRUG ADMINISTRATION PLANS TO COLLECT HUNDREDS OF SAMPLES OF POPCORN CORN CHIPS CORN FLAKES AND OTHER CORNBASED PRODUCTS FROM FOOD STORES AND SCREEN THEM FOR A TOXIN CALLED FUMONISIN AND INVESTIGATE WHETHER IT CLEARLY CAUSES CANCER THE RESULTS AREN'T EXPECTED FOR SOME TIME CANADIAN SCIENTISTS ARE ALSO STUDYING WHETHER THE TOXIN CAN PASS THROUGH FARM ANIMALS INTO MILK AND EGGS FUMONISIN IS PRODUCED BY A COMMON SOIL FUNGUS CALLED FUSARIUM MONILIFORME WHICH OCCURS IN CROPS ACROSS THE GLOBE US CROP EXPERTS HAVE KNOWN FOR DECADES THAT IT BELONGS TO A GROUP OF MOLDS THAT FLOURISH ON CORN DURING A WET AND COOL GROWING SEASON SUCH AS THE ONE EXPERIENCED IN THE MIDWEST IN 1992 THE WISCONSIN CORN CROP WAS SO HEAVILY INFESTED WITH FUSARIUM STRAINS THAT SOME FARMERS PLOWED UNDER THEIR FIELDS RATHER THAN HARVEST THEM SO FAR THE FUMONISINPRODUCING STRAIN HASN'T BEEN FOUND IN SIGNIFICANT AMOUNTS IN THE INFESTATION BUT THE STRAINS THAT HAVE BEEN DETECTED ARE PRODUCING LOW LEVELS OF OTHER KINDS OF TOXINS THAT SICKEN LIVESTOCK WISCONSIN OFFICIALS PLAN TO SAMPLE MILK IN FEBRUARY BECAUSE MUCH OF THE CORN CROP IS FED TO THE STATE'S DAIRY COWS US SCIENTISTS SAY IT MIGHT TAKE SEVERAL YEARS BEFORE THEY CAN ANSWER EVEN BASIC QUESTIONS ABOUT FUMONISIN SUCH AS HOW OFTEN IT SHOWS UP IN CROPS WHAT LEVELS ARE DANGEROUS TO LIVESTOCK AND HUMANS AND HOW TO CONTROL IT ONE REASON THAT FUMONISIN RESEARCH ON ANIMALS HAS LAGGED BEHIND IN THE US IS THAT THE TOXIN COSTS ROUGHLY 30000 A GRAM WE CAN'T SAY FOR SURE IT ISN'T A HUMAN HEALTH CONCERN SAYS SAM PAGE DIRECTOR OF THE FDA'S DIVISION OF NATURAL PRODUCTS WHAT WE KNOW ABOUT FUMONISIN IS ABOUT A DECADE BEHIND WHAT WE KNOW ABOUT AFLATOXIN ONE OF THE BESTKNOWN NATURAL CARCINOGENS FUMONISIN DIDN'T EVOLVE INTO A US FOOD SAFETY ISSUE UNTIL LAST YEAR THAT'S WHEN GOVERNMENT SCIENTISTS STRUNG TOGETHER SEVERAL BITS OF EVIDENCE FINGERING FUMONISIN AS A FACTOR IN EVERYTHING FROM A BRAIN DISEASE IN AMERICAN HORSES TO HUMAN ESOPHAGEAL CANCER IN REGIONS OF SOUTHERN AFRICA AND CHINA MEDICAL RESEARCHERS IN SOUTH AFRICA HAVE BEEN WORKING ON FUMONISIN FOR NEARLY A DECADE WHILE INVESTIGATING THE UNUSUALLY HIGH RISK OF ESOPHAGEAL CANCER IN THE BLACK HOMELAND OF TRANSKEI THEY DISCOVERED FUMONISIN IN LOCALLY GROWN CORN CORN IS A STAPLE THERE AND MOLDY KERNELS REPORTEDLY ARE USED FOR MAKING HOMEBREWED ALCOHOLIC BEVERAGES TWOTHIRDS OF A GROUP OF RATS FED THE TRANSKEI TOXIN DEVELOPED LIVER CANCER OVER 26 MONTHS BUT US INTEREST DIDN'T GROW UNTIL MEDICAL INVESTIGATORS BEGAN STUMBLING ACROSS FUMONISIN HERE THE MOST INTRIGUING DISCOVERY INVOLVED FOOD SAMPLES COLLECTED ABOUT TWO YEARS AGO AROUND CHARLESTON SC WHERE THE BLACK POPULATION SUFFERS ONE OF THE HIGHEST RATES OF ESOPHAGEAL CANCER IN THE US THAT HAS SOME RESEARCHERS MULLING WHETHER THE CORN MEAL USED TO MAKE ILLICIT LIQUOR OR MOONSHINE IS CONNECTED SOMEHOW TO THE HIGH CANCER RISK ABOUT THE SAME TIME US LIVESTOCK SCIENTISTS WERE FINDING FUMONISIN IN GRAIN THAT HAD BEEN EATEN BY FARM ANIMALS KILLED DURING SOME GRUESOME EPIDEMICS IN HORSES FUMONISIN APPEARS TO LIQUEFY PART OF THE BRAIN A FEW DOZEN HORSES IN INDIANA SUDDENLY DIED FROM THIS DISEASE CALLED EQUINE LEUKOENCEPHALOMALACIA IN DECEMBER 1991 FUMONISIN WAS ALSO DISCOVERED IN CORN EATEN BY PIGS THAT DIED IN 1989 FROM THEIR LUNGS SWELLING WITH FLUID A DISEASE CALLED PULMONARY EDEMA EVERYONE IS ON THE BANDWAGON NOW SAYS EUGENE SMALLEY A UNIVERSITY OF WISCONSIN EXPERT ON MOLDPRODUCED POISONS IN ADDITION TO THE FOOD SURVEY SCIENTISTS AT A GOVERNMENT LABORATORY IN GEORGIA ARE TRYING TO EXPAND UPON THE SOUTH AFRICA RAT STUDY A PRELIMINARY INDICATION ABOUT WHETHER THE ANIMALS DEVELOP CANCER PROBABLY WON'T BE AVAILABLE UNTIL MIDYEAR THE CLEAREST EVIDENCE WILL COME FROM A TWOYEAR STUDY INVOLVING SEVERAL HUNDRED RODENTS THAT IS SCHEDULED TO BEGIN IN 1994 THE RESULTS WILL PROBABLY TAKE SEVERAL YEARS TO DECIPHER SAYS DOUGLAS B WALTERS OF THE NATIONAL TOXICOLOGY PROGRAM WHICH IS IN CHARGE OF COORDINATING FEDERAL RESEARCH ON NATURAL AND MANMADE TOXINS LABELING FUMONISIN A CARCINOGEN WOULD OBLIGATE THE FDA TO KEEP IT OUT OF FOOD WHICH WOULD BE A REGULATORY NIGHTMARE TAKE THE CASE OF AFLATOXIN IT IS EXCRETED BY ANOTHER SOIL FUNGUS OFTEN FOUND IN THE US FARM BELT ASPERGILLUS FLAVUS IT FLOURISHES DURING HOT AND DRY WEATHER REGULATORS WERE OVERWHELMED DURING THE 1988 DROUGHT WITH THE JOB OF TRYING TO POLICE AN INCREDIBLY FAINT YET POTENT TOXIN ERUPTING WILLYNILLY ACROSS TENS OF MILLIONS OF ACRES OF FARMLAND MANY DAIRIES WERE FORCED TO DUMP MILK AFTER COWS ATE INFESTED GRAIN FOREIGN CUSTOMERS COMPLAINED OF RECEIVING CONTAMINATED CROPS SOME MOLD TOXIN EXPERTS ARE WORRIED THAT THE EXPLOSION OF INTEREST IN FUMONISIN MIGHT NEEDLESSLY FRIGHTEN CONSUMERS AS WELL AS ROIL THE GRAIN INDUSTRY WE'VE DECIDED TO KEEP QUIET UNTIL WE GET MORE DATA SAYS PAUL E NELSON DIRECTOR OF PENNSYLVANIA STATE UNIVERSITY'S FUSARIUM RESEARCH CENTER WE'RE ONLY SCRATCHING THE SURFACE ONE SIGN OF THE FOOD INDUSTRY'S CONCERN IS RISING SALES OF TEST KITS THAT SCREEN FOR MOLDPRODUCED POISONS OR MYCOTOXINS THE TEST KIT MARKET IS CURRENTLY ONLY ABOUT 25 MILLION BUT MYCOTOXIN BUSINESS HAS ROUGHLY TRIPLED OVER THE PAST FEW YEARS AT FIRMS SUCH AS ROMER LABS OF UNION MO AND NEOGEN CORP OF LANSING MICH SEED COMPANIES ARE LOOKING FOR PLANTS THAT RESIST MOLDS DEKALB GENETICS CORP IS SCOURING MOLDY CORN FIELDS FOR UNAFFECTED PLANTS THAT IT CAN BREED ARCHRIVAL PIONEER HIBRED INTERNATIONAL INC IS TURNING TO BIOTECHNOLOGY TO DEVELOP A CORN LINE THAT PRODUCES A FUNGUSFIGHTING PROTEIN NOBODY WANTS TO GET CAUGHT WITHOUT A LINE SAYS WILLIAM DOLEZAL A PIONEER RESEARCH PLANT PATHOLOGIST IT'S BECOMING A BIG AREA 9301120117 930112 INTERNATIONAL DISSOLUTION OF AEROFLOT CREATES CHAOS EXSOVIET STATES TRY TO BUILD NEW AVIATION INDUSTRY BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL ONCE THE WORLD'S LARGEST AIRLINE AEROFLOT NOW LIES IN ABOUT 80 PIECES SCATTERED ACROSS THE FORMER SOVIET UNION THE MESS IS ABOUT TO GET EVEN WORSE WE EXPECT TO SET UP ABOUT 150 SHAREHOLDING SOCIETIES MAYBE MORE SAYS VITALY SOLOMATIN THE CHIEF ECONOMIST OF THE RUSSIAN DEPARTMENT OF CIVIL AVIATION EACH SOCIETY WILL BE ITS OWN LITTLE AIRLINE THE TOTAL MAY COME TO AS MANY AS 200 CARRIERS IN RUSSIA ALONE SO MUCH FOR THE GOOD OLD DAYS FOR YEARS AEROFLOT WAS THE MOTHER OF ALL AIRLINES IT CARRIED MORE PASSENGERS MORE MILES THAN ANY OTHER AIRLINE ITS EMPLOYMENT WAS ESTIMATED AT A STAGGERING 600000 PEOPLE ITS FLEET OF MORE THAN 3000 PASSENGER PLANES FAR OUTNUMBERED THE COMBINED FLEETS OF AMERICAN AIRLINES DELTA UNITED USAIR AND CONTINENTAL THE FIVE NEXT LARGEST CARRIERS IN THE WORLD THROW IN BRITISH AIRWAYS AIR FRANCE AND LUFTHANSA AND YOU STILL WOULD HAVE COME UP SHORT BUT AS THE SOVIET UNION HAS DISSOLVED INTO 15 STATES AND A PLETHORA OF FREEWHEELING REGIONS SO TOO HAS AEROFLOT BEEN TORN APART BY CENTRIFUGAL FORCES AND THE 80 AIRLINES INTO WHICH IT HAS ALREADY SPLINTERED SHOW THE SAME CONFUSION SHORTAGES AND NEED FOR MASSIVE INVESTMENT AS THE FLEDGLING STATES ONLY AEROFLOT'S INTERNATIONAL UNIT NOW KNOWN AS AEROFLOT RUSSIAN INTERNATIONAL AIRLINES HAS HELD TOGETHER AND TODAY CLAIMS EXCLUSIVE RIGHTS TO THE NAME AEROFLOT WE ARE ENTERING A NEW STAGE IN OUR HISTORY SAYS VLADIMIR TIKHONOV DEPUTY CHAIRMAN AND COMMERCIAL DIRECTOR OF THE NEW AEROFLOT INDEED PUTTING TOGETHER A WHOLE NEW AVIATION INDUSTRY PROMISES TO BE A BUMPY RIDE RUSSIAN OFFICIALS CONSERVATIVELY ESTIMATE THE INVESTMENT REQUIRED TO BRING AIRCRAFT AND AIRPORTS UP TO WESTERN STANDARDS AT 18 BILLION DURING THE NEXT FOUR YEARS AN ESTIMATE THAT COULD PROVE FAR TOO LOW NOT ONLY IS MUCH OF THE CURRENT FLEET MADE UP OF PLANES THAT ARE 20 TO 30 YEARS OLD BUT THERE ALSO ISN'T A SINGLE AIRPORT WITH THE MODERN RADAR AND TRACKING EQUIPMENT THAT IS STANDARD IN THE WEST AND ASIA IN ADDITION FREE PRICING WENT INTO EFFECT JAN 1 CAUSING AIR FARES TO SURGE 300 ON MANY POPULAR ROUTES RUSSIAN OFFICIALS SAY THAT BY YEAR'S END TICKET PRICES MAY BE UP 1000 OR MORE BUT FREEING PRICES IS NO GUARANTEE THAT SOUND ECONOMICS WILL TAKE OVER THE FARE ON A SEVENHOUR FLIGHT FROM MOSCOW TO KHABAROVSK FOR EXAMPLE IS EXPECTED TO JUMP TO AROUND 10 NOWHERE IN THE WORLD WAS AVIATION STRUCTURED LIKE HERE SO NOWHERE IN THE WORLD HAS THERE BEEN A RESTRUCTURING LIKE THIS SAYS IGOR DESYATNICHENKO AEROFLOT DEPUTY EXECUTIVE DIRECTOR FOR FINANCE AND A FORMER DEPUTY MINISTER FOR CIVIL AVIATION THAT'S WHY WE HAVE THESE TREMENDOUS DIFFICULTIES ALMOST ANYONE WHO BOARDED AN AEROFLOT AIRCRAFT IN THE OLD SOVIET UNION HAS A STORY TRAVELERS RECOUNT TALES OF SEVENHOUR FLIGHTS WITHOUT FOOD SERVICE AIRCRAFT REEKING OF URINE AND SEASONED PASSENGERS WHO BROUGHT ALONG THEIR OWN SEAT CUSHIONS BUT NOW THERE IS A NEW DIMENSION TO THE ADVENTURE ROY KING OF BRITISH FORESTRY CONSULTANTS LTS INTERNATIONAL LTD TELLS OF BEING DELAYED FOR SEVERAL DAYS BECAUSE OF A LACK OF FUEL FOR A DOMESTIC FLIGHT WHEN PASSENGERS FINALLY BOARDED THE AIRCRAFT IT WAS STANDING ROOM ONLY SOMEONE POINTED OUT THAT IT IS AGAINST INTERNATIONAL RULES TO HAVE PEOPLE STANDING IN THE AISLES THE FLIGHT ATTENDANT'S INCISIVE REPLY WHAT SHOULD WE DO ASK THEM TO WAIT ANOTHER THREE DAYS THORE SHINDOVSKI OF EUROKONTAKT TOURS MOSCOW SAYS ONE OF HIS COLLEAGUES WAS LEADING A GROUP OF BUSINESSMEN AROUND RUSSIA ON A NEW CHARTER AIRLINE WHEN OFFICIALS IN BUKHARA UZBEKISTAN DECIDED TO CALL IT A DAY AT 6 PM AND SHUT DOWN THE AIRPORT ONLY A BRIBE OF ABOUT 20 KEPT THE AIRPORT OPEN LONG ENOUGH TO REFUEL THE PLANE AND TAKE OFF SHORTAGES OF PLANES FUEL AND SPARE PARTS GROW INCREASINGLY WORSE FORCING DELAYS AND CANCELLATIONS AND IDLING THOUSANDS OF PASSENGERS THROUGHOUT THE FORMER SOVIET UNION AT MANY AIRPORTS AIRCRAFT ARE SITTING ON THE TARMAC WITHOUT SUCH VITAL COMPONENTS AS ENGINES DOMESTIC FLIGHTS ARE NOT DEFINITE MR TIKHONOV SAYS IN AN INTERVIEW IN MOSCOW THEY CAN BE CANCELED AT ANY MINUTE OR DELAYED FLIGHT SCHEDULES CAN ONLY BE TAKEN AS AN UNCONFIRMED TIMETABLE UNDER THE SOVIET REGIME AEROFLOT WAS MORE THAN JUST AN AIRLINE EVERYTHING FROM CROPDUSTING TO RESCUE FLIGHTS TO TROOP TRANSPORT FELL UNDER THE AEROFLOT UMBRELLA GEOGRAPHY ADDED TO AEROFLOT'S SPRAWL THE SOVIET UNION SPANNED 11 TIME ZONES WITH ILLKEPT ROADS AND AN INCOMPLETE RAIL NETWORK FOR MANY CITIES AEROFLOT WAS THE ONLY LINK TO THE OUTSIDE WORLD BUT WHEN THE SOVIET UNION COLLAPSED THE NEWLY INDEPENDENT STATES SEIZED WHATEVER AEROFLOT PLANES STOOD AT THEIR AIRPORTS IT WAS AN ABSOLUTELY CHAOTIC SITUATION MR TIKHONOV SAYS BUT HIS MOST SERIOUS PROBLEMS EMERGED WHEN STARTUP COUNTRIES USED AEROFLOT PLANES AND FLIGHT NUMBERS TO LAUNCH INTERNATIONAL SERVICE THEY RAN UP HUGE BILLS FOR FUEL AND SERVICE AT FOREIGN AIRPORTS THE BILLS WERE SENT TO MOSCOW WHEN THE BILLS WENT UNPAID SOME COUNTRIES SUCH AS INDIA AND PAKISTAN IMPOUNDED AIRCRAFT BEARING THE AEROFLOT NAME ALL POSSIBLE ENTREPRENEURS STARTED DOING AIRLINE BUSINESS MR TIKHONOV SAYS NOTING THAT THE NEW AIRLINES RECEIVED LICENSES FROM AUTHORITIES AS ILLQUALIFIED AS LOCAL CHAMBERS OF COMMERCE THE SITUATION WAS DETERIORATING QUICKLY AND WE WERE HEADING TO FULL BANKRUPTCY AND COLLAPSE EVEN WORSE CONTINUING CHAOS AT THE MUSHROOMING DOMESTIC AIRLINES HAS RESULTED IN DETERIORATING SAFETY IN THE PAST YEAR 23 AIRCRAFT HAVE CRASHED MANY OF THEM EITHER CARGO OR RESCUE AIRCRAFT KILLING 160 PEOPLE NONE WAS WITH AEROFLOT'S INTERNATIONAL AIRLINE MR TIKHONOV AND HIS STAFF DEVOTED THEIR ENERGIES IN 1992 TO SORTING OUT THE SITUATION FIRST THEY COPYRIGHTED THE AEROFLOT NAME TO RESERVE EXCLUSIVE RIGHTS TO ITS USE THEN THEY SIGNED AGREEMENTS TO GIVE 50 OTHER AIRLINES THE TEMPORARY RIGHT TO USE THE AEROFLOT NAME PROVIDED THEY PAID THEIR BILLS SINCE DEC 1 ONLY THE 104PLANE INTERNATIONAL DIVISION HAS THE RIGHT TO FLY INTERNATIONALLY USING AEROFLOT COLORS AS AEROFLOT IS FREED FROM FOREIGN FUEL BILLS RUN UP BY BREAKAWAY AIRLINES MR TIKHONOV SAYS THAT SHOULD HAVE BROUGHT A MODEST PROFIT FOR THE INTERNATIONAL DIVISION FOR 1992 THANKS MOSTLY TO HARDCURRENCY EARNINGS OFFICIALS SAY ABOUT 200 BILLION RUBLES ABOUT 450 MILLION A YEAR FOR FOUR YEARS WILL BE NECESSARY JUST TO UPGRADE DOMESTIC SERVICES BUT THOSE SERVICES POSTED LOSSES OF ABOUT 40 BILLION RUBLES FOR 1992 THE GOVERNMENT HOPES TO MAKE UP FOR THAT BY RAISING DOMESTIC FARES ANOTHER STRATEGY IS TO BRING IN WESTERN ADVISERS AND INVESTORS ALREADY WESTERN AIRLINES ARE IN A WIDE RANGE OF JOINT VENTURES BRITISH AIRWAYS PLC HAS JOINED WITH AEROFLOT TO LAUNCH AIR RUSSIA AN INTERNATIONAL AIRLINE THAT IS EXPECTED TO START SERVICES THIS SUMMER USING BOEING AIRCRAFT LUFTHANSA HAS AN AGREEMENT TO HELP MODERNIZE THE SHEREMETYEVO 1 AIRPORT IN MOSCOW MR TIKHONOV PROMISES THAT AS THE GOVERNMENT TRANSFORMS CIVIL AVIATION INTO SHAREHOLDING COMPANIES THE OPPORTUNITIES FOR BOTH AIRLINES AND INVESTORS TO CAPITALIZE ON A HUGE MARKET WILL INCREASE THIS MUST BRING US NEW POSSIBILITIES AND SOME OF THESE WILL BE OPEN TO FOREIGN INVESTORS SAYS MR TIKHONOV THE POTENTIAL OF THE MARKET INSIDE RUSSIA IS TREMENDOUS 9301120116 930112 INTERNATIONAL RUSSIAN VODKA DRINKERS MAY START SEEING DOUBLE MOSCOW IS RUSSIA BIG ENOUGH FOR TWO SMIRNOV VODKAS THE FIRST 6000 BOTTLES OF REAL SMIRNOV A NEW DOMESTIC BRAND WILL BE HITTING SHOP SHELVES IN THE NEXT FEW DAYS CHALLENGING SMIRNOFF VODKA PRODUCED BY HEUBLEIN INC OF THE US THE ITARTASS NEWS AGENCY SAID A SPOKESMAN FOR INTERNATIONAL DISTILLERS & VINTNERS DISTRIBUTOR OF SMIRNOFF VODKA IN RUSSIA SAID THE COMPANY WON'T RESPOND UNTIL IT SEES THE CHALLENGER SMIRNOV VODKA'S TRADEMARK AND MARKETING APPROACH WE HAVE TO ESTABLISH THE FACTS AND THEN WE'LL SEE WHAT WE CAN DO HE SAID IDV AND HEUBLEIN ARE BOTH UNITS OF GRAND METROPOLITAN PLC OF BRITAIN THE SPOKESMAN SAID RUSSIA'S PATENT OFFICE ROSPATENT IN SEPTEMBER GRANTED BOTH SALES RIGHTS TO BOTH SMIRNOFF AND SMIRNOV THEN IN A NOVEMBER APPEALS DECISION ROSPATENT BLOCKED THE UPSTART SMIRNOV FROM USING THE NAME THE IDV SPOKESMAN SAID HE DOESN'T THINK THAT SMIRNOV'S ANNOUNCEMENT SIGNALS ANY SHIFT IN ROSPATENT'S STAND TOWARD HIS COMPANY'S CLAIM AS SOLE PROPRIETOR OF THE SMIRNOFF NAME IN RUSSIA BORIS SMIRNOV PRODUCER OF THE NEW BRAND AND A DESCENDANT OF PYOTR SMIRNOV A PREREVOLUTIONARY ENTREPRENEUR WHOSE NAME BECAME SYNONYMOUS WITH THE FIERY DRINK TAKES A MORE POPULIST VIEW IT IS UP TO THE CONSUMERS NOW TO CHOOSE WHICH VODKA TO DRINK HE SAYS 9301120115 930112 WORLD MARKETS TOKYO STOCKS DROP FOR FIFTH SESSION IN A ROW LONDON PRICES SINK BROADLY IN EDGIER MARKET A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DRIFTED LOWER MONDAY MARKING THE FIFTH DECLINE IN A ROW LONDON PRICES FINISHED BROADLY LOWER PARTLY FROM PROFITTAKING AFTER RECENT GAINS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLUMPED 14629 POINTS FRIDAY RETREATED 4514 TO 1658955 ON TUESDAY THE NIKKEI ROSE 8959 POINTS TO CLOSE THE MORNING SESSION AT 1667914 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 120 MILLION SHARES DOWN SHARPLY FROM 2213 MILLION SHARES FRIDAY WHEN THE SETTLEMENT OF JANUARY OPTIONS PRICES BOOSTED TURNOVER LOSERS TOPPED GAINERS 577277 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 873 POINTS FRIDAY DROPPED 559 TO 128393 AMID INCREASINGLY GLOOMY MARKET SENTIMENT INTEREST IN TRADING WANED JAPAN'S WEAK ECONOMY CONTINUED TO LIMIT GAINS FOR STOCKS WHILE PUBLIC PENSION FUNDS WERE EXPECTED TO MAINTAIN THEIR ROLE IN STEPPING IN TO SUPPORT ANY DECLINES THE FUNDS WEREN'T MUCH IN EVIDENCE MONDAY WHEN INDEXLINKED ARBITRAGE ACTIVITY PUSHED THE MARKET UP AND DOWN DURING THE SESSION SEVERAL ISSUES THAT ROSE LAST WEEK ON NEWS OF JAPANESE CROWN PRINCE NARUHITO'S ENGAGEMENT TO BE MARRIED DECLINED ON PROFITTAKING THE TOKYO MARKET WASN'T GREATLY AFFECTED BY NEWS THAT IRAQI TROOPS SUNDAY HAD CROSSED INTO KUWAIT AND REMOVED SEVERAL SURFACETOAIR MISSILES NEWS THAT THE JAPANESE FINANCE MINISTRY WAS CONTINUING TO PRESSURE JAPANESE FINANCIAL INSTITUTIONS TO LIMIT SALES OF THEIR STOCKHOLDINGS AIMED AT DRESSING UP THEIR MARCH 1993 EARNINGS RESULTS ALSO HAD LITTLE EFFECT THOUGH THIS DID HURT SENTIMENT BECAUSE IT INDICATED A LACK OF WILLINGNESS BY THE GOVERNMENT TO DEAL WITH THE MARKET'S FUNDAMENTAL WEAKNESS HEAVY CROSSTRADING ACTIVITY IN OSAKA AND NAGOYA SUGGESTED THAT THE MINISTRY'S INSTRUCTIONS WEREN'T BEING TAKEN TOO SERIOUSLY IN ONE EXAMPLE OF CROSSTRADING AN INSTITUTIONAL INVESTOR ARRANGES TO SELL SHARES FOR WHICH IT HAS UNREALIZED PROFITS AND BUYS THEM BACK THE NEXT DAY AT THE SAME PRICE AFTER BOOKING PROFITS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLUMPED 258 POINTS TO 27734 THE FT 30STOCK INDEX SANK 265 POINTS OR 12 TO 21503 VOLUME WAS 5927 MILLION SHARES COMPARED WITH 7739 MILLION SHARES IN THE PREVIOUS SESSION IN ADDITION TO PROFITTAKING PRESSURES ON STOCKS CAME FROM A WEAK FUTURES MARKET AND FEARS OF STOCK RIGHTS ISSUES ONLY A HANDFUL OF SHARES MANAGED TO ESCAPE THE BROADBASED DECLINE IN GENERALLY FEATURELESS DEALINGS THE 100STOCK INDEX ENDED ABOVE THE DAY'S LOW OF 27615 BUT WAS FAR OFF THE PEAK OF 28014 AT THE OPENING A STEEP DROP IN THE FTSE STOCKINDEX FUTURES CONTRACT IN LONDON LED THE STOCK MARKET DOWN THE SHARP RETREAT WAS MAGNIFIED BY THE THIN TURNOVER AS MANY INSTITUTIONAL INVESTORS WERE SIDELINED AWAITING FRESH CONVINCING EVIDENCE THAT A BRITISH ECONOMIC REVIVAL IS IMMINENT IN FRANKFURT SHARE PRICES OPENED LOWER AND CREPT HIGHER ON THIN BUYING DEMAND TO END THE SESSION WITH MARGINAL GAINS THE DAX 30STOCK INDEX EDGED UP 044 POINT TO 153196 AFTER DROPPING LAST WEEK FOLLOWING FLUCTUATIONS INFLUENCED BY THE OUTLOOK FOR INTEREST RATES THE MARKET APPEARED TO HAVE STABILIZED ELSEWHERE IN EUROPE PARIS STOCKS PLUNGED THE RETREAT WHICH GATHERED STEAM AS THE SESSION PROGRESSED RESULTED FROM MOUNTING CONCERN ABOUT FRANCE'S BULGING BUDGET DEFICIT RECENT GOVERNMENT MEASURES TO PROP UP FLAGGING ECONOMIC ACTIVITY AND TO COVER A SOCIALSECURITY SYSTEM DEFICIT ARE EXPECTED TO ADD SIGNIFICANTLY TO THE BUDGET GAP THE BOURSE IGNORED THE SLIGHT RECOVERY OF THE FRENCH FRANC IN FOREIGNEXCHANGE DEALINGS AMSTERDAM SHARES FELL ON PROFITTAKING AND A WEAKER DOLLAR AND IN REACTION TO WEAKNESS IN OTHER MARKETS THOUGH WALL STREET'S EARLY STRENGTH GAVE SOME SUPPORT TO THE DUTCH MARKET WHERE VOLUME WAS MODERATE AND DEMAND WAS CONCENTRATED IN JUST A FEW STOCKS MILAN PRICES DROPPED SHARPLY AS THE MARKET WAS DOUSED BY A BOUT OF SELLING AHEAD OF TECHNICAL DEADLINES LATER THIS WEEK THE ITALIAN MARKET'S MOOD ALSO WAS DAMPED BY RISING POLITICAL TENSIONS AS SEVERAL MINORITY OPPOSITION PARTIES HAVE CALLED FOR A VOTE OF CONFIDENCE IN THE GOVERNMENT AND AN INVESTIGATION OF A CORRUPTION SCANDAL HAS WIDENED STOCKHOLM EQUITIES FELL THOUGH THEY FINISHED ABOVE EARLY LOWS IN MODERATE ACTIVITY AFTER THE PRESENTATION OF SWEDEN'S BUDGET BILL WHICH CONTAINED FEW SURPRISES STOCKS' DECLINES WERE ATTRIBUTED TO RISING SHORTTERM MONEY MARKET RATES WHICH WERE SPARKED BY PUBLISHED COMMENTS BY THE SWEDISH CENTRAL BANK GOVERNOR THAT CUTS IN A KEY LENDING RATE WOULD BE AVOIDED AS THIS WOULD HURT THE KRONA CURRENCY'S STRENGTH ZURICH STOCKS DROPPED BROADLY ON A SELLING WAVE PROMPTED BY PROFITTAKING FOLLOWED THE EXCHANGE'S DECEMBER RALLY AMONG BIG ASIAN AND PACIFIC EXCHANGES SYDNEY SHARES RALLIED AS PRICES WERE POISED FOR A BOUNCE UP AFTER A 4 RETREAT FOR THE THREE PREVIOUS SESSIONS SINGAPORE STOCKS FELL ON CONCERNS THAT TENSIONS IN IRAQ COULD INCREASE TAIPEI PRICES DROPPED FROM PROFITTAKING IN THIN TRADING HONG KONG SHARES REBOUNDED SHARPLY AFTER CHINESE OFFICIALS MADE AGREEABLE COMMENTS ABOUT THE BRITISH COLONY PROMPTING OPTIMISM ABOUT A SINOBRITISH COMPROMISE ON THE TRANSFER OF HONG KONG TO BEIJING'S CONTROL IN 1997 CHINA'S COMMUNIST PARTY CHIEF JIANG ZEMIN PREDICTED THAT THE COLONY'S CHANGE IN SOVEREIGNTY WOULD BE SMOOTH AND THAT HONG KONG WOULD REMAIN PROSPEROUS AND LU PING THE TOP CHINESE OFFICIAL FOR THE COLONY BACKED OFF FROM EARLIER THREATS THAT BEIJING MIGHT CANCEL BRITISHSIGNED CONTRACTS AFTER 1997 THE STATEMENTS FOLLOWED AN INDICATION BY HONG KONG GOV CHRIS PATTEN OF ROOM FOR COMPROMISE WITH BEIJING IN THE DISPUTE ABOUT DEMOCRATIC REFORMS THIS WEEK THE GOVERNOR IS SCHEDULED TO SUBMIT THE REFORM PLAN TO HONG KONG'S LEGISLATURE 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 9301120114 930112 PROPERTY AND CASUALTY INSURERS' 1992 RESULTS WEAK AM BEST SAYS OLDWICK NJ REFLECTING RECORD LOSSES ON HURRICANE ANDREW AND OTHER CATASTROPHES PROPERTY AND CASUALTY INSURERS POSTED WEAK RESULTS FOR 1992 ACCORDING TO AM BEST CO THE INDUSTRY'S TOTAL CAPITAL INCREASED ONLY 43 BILLION OR 27 TO AN ESTIMATED 163 BILLION THE INDUSTRY INCURRED 34 BILLION IN UNDERWRITING LOSSES LAST YEAR 14 BILLION OF WHICH WAS THE NET LOSS ON 22 BILLION OF LOSSES ON CATASTROPHES THE LOSSES WERE OFFSET BY 9 BILLION IN CAPITAL GAINS AS WELL AS INVESTMENT INCOME AND CAPITAL CONTRIBUTIONS FROM PARENT COMPANIES PROPERTY AND CASUALTY INSURERS EARNED AN ESTIMATED 6 BILLION LAST YEAR THE INDUSTRY'S COMBINED RATIO A KEY MEASURE OF UNDERWRITING PROFITS ROSE TO 1148 IN 1992 FROM 1088 IN 1991 THE INDUSTRY WROTE 229 BILLION OF PREMIUMS LAST YEAR LESS THAN A 3 GAIN AM BEST ESTIMATED THAT 45 PROPERTY AND CASUALTY INSURERS BECAME INSOLVENT LAST YEAR SEPARATELY CHUBB CORP SAID IT EXPECTS TO POST A LOSS OF 65 MILLION NET OF REINSURANCE ON CATASTROPHES IN THE FOURTH QUARTER THE BIGGEST CONTRIBUTORS WERE THE NORTHEAST STORM IN DECEMBER AND ADDITIONAL LOSSES ON HURRICANE ANDREW THE LOSSES AMOUNT TO 47 CENTS A SHARE COMPARED WITH 24 CENTS A SHARE IN LOSSES FROM CATASTROPHES IN 1991'S FOURTH QUARTER CHUBB EARNED 158 A SHARE IN THE YEAREARLIER QUARTER 9301120113 930112 PANETTA HOLDS OPTIONS OPEN ON THE DEFICIT BUDGET DIRECTORDESIGNATE WON'T RULE OUT RISE IN TAXES SPENDING CUTS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUDGET DIRECTORDESIGNATE LEON PANETTA SAID EVERYTHING IS ON THE TABLE AS BILL CLINTON ASSEMBLES HIS DEFICITREDUCTION PLAN AND REFUSED TO RULE ANY SPENDING CUT OR TAX INCREASE OUT OF BOUNDS IN A LARGELY CORDIAL CONFIRMATION HEARING BEFORE THE SENATE GOVERNMENTAL AFFAIRS COMMITTEE MR PANETTA ADDED THAT DESPITE MR CLINTON'S CAMPAIGN PROMISES A TAX CUT FOR THE MIDDLE CLASS ISN'T AS HIGH A PRIORITY AS REDUCING THE DEFICIT OR INCREASING FEDERAL INVESTMENT SPENDING THE NINETERM CALIFORNIA CONGRESSMAN SAID MR CLINTON INTENDS TO OUTLINE HIS ECONOMIC PLAN IN FEBRUARY BUT WON'T PRESENT A DETAILED BUDGET UNTIL MIDMARCH A TIMETABLE SIMILAR TO THE ONE RONALD REAGAN FOLLOWED 12 YEARS AGO IN OCTOBER MR CLINTON PROMISED TO INTRODUCE A JOBS BILL ON THE FIRST DAY I WAS INAUGURATED BUT WITH THE INAUGURATION LITTLE MORE THAN A WEEK AWAY MR CLINTON HAS YET TO MAKE THE CRUCIAL DECISIONS ON HIS ECONOMIC PLAN MR PANETTA SAID PRESIDENTELECT CLINTON IN AN INTERVIEW ON THE PUBLIC BROADCASTING SYSTEM SAID THAT AT THE TIME HE MADE HIS PLEDGE TO HALVE THE DEFICIT HE WAS TALKING ABOUT 145 BILLION IN DEFICIT REDUCTION OVER FOUR YEARS I THINK WE CAN TAKE AT LEAST THAT MUCH OUT OF IT AND MAYBE MORE HE SAID WE'RE GOING TO HAVE TO CUT MORE THAN WE WOULD HAVE THOUGHT BECAUSE THE DEFICIT'S GOTTEN LARGER MR CLINTON SAID AND WE'RE GOING TO HAVE TO MOVE MORE AGGRESSIVELY ON THE HEALTHCARE FRONT MR PANETTA PRAISING THE CONTROVERSIAL 1990 DEFICITREDUCTION LAW THAT WAS DESIGNED TO REDUCE THE DEFICIT BY 500 BILLION OVER FIVE YEARS ADVOCATED SETTING A SIMILAR DOLLAR GOAL FOR REDUCING THE DEFICIT RATHER THAN SETTING A TARGET FOR THE DEFICIT ITSELF AS THE GOVERNMENT HAS DONE IN THE PAST AT A LUNCH MEETING WITH REPORTERS SEN BILL BRADLEY SAID MR CLINTON SHOULD AT LEAST CUT THE DEFICIT IN HALF OVER FOUR YEARS WHAT YOU NEED IS ECONOMIC GROWTH IN 1996 AND THIS IS THE WAY TO GET ECONOMIC GROWTH IN 1996 HE SAID MR BRADLEY A MEMBER OF THE TAXWRITING FINANCE COMMITTEE SAID HE STILL FAVORS A TAX CUT FOR MIDDLECLASS FAMILIES BUT SAID IT SHOULDN'T BE PUSHED NOW IN VIEW OF THE DEFICIT TO RAISE MONEY THE NEW JERSEY DEMOCRAT SUGGESTED INCREASING THE GASOLINE TAX IMPOSING A BROADER TAX ON ENERGY CREATING A NEW VALUEADDED OR CONSUMPTION TAX OR LIMITING TAX DEDUCTIONS AMONG SEVERAL KEY QUESTIONS TO BE RESOLVED BY MR CLINTON IS WHETHER THE IMPROVING ECONOMY NEEDS A QUICK DEFICITWIDENING FISCAL STIMULUS MR PANETTA SUGGESTED THAT ONE OPTION IS TO ENACT THIS YEAR A BROAD PIECE OF LEGISLATION THAT INCREASES INVESTMENT SPENDING PROMPTLY BUT DEFERS THE EFFECTIVE DATE OF DEFICITCUTTING MEASURES IF WE DESIGN A CREDIBLE DEFICITREDUCTION PLAN AND WE COMBINE THAT WITH AN INVESTMENT PACKAGE WE COULD TRY TO UPFRONT' SOME OF THAT INVESTMENT SUCH AS EDUCATION RESEARCH AND DEVELOPMENT AND INFRASTRUCTURE HE SAID CLINTON AIDES SAID THAT ONE SHORTTERM STIMULUS OPTION GIVEN TO THE PRESIDENTELECT SUGGESTS THAT IN THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 HE ASK CONGRESS TO SPEND UP TO THE LIMITS SET IN THE 1990 DEFICITREDUCTION LAW CONGRESS ACTUALLY APPROPRIATED ABOUT 165 BILLION LESS THAN THAT LAW ALLOWED WITH ABOUT 14 BILLION OF THAT IN DEFENSE ACCORDING TO THE WHITE HOUSE BUDGET OFFICE THE DEFICIT IS FAR LARGER THAN PREDICTED HOWEVER BECAUSE SPENDING ON HEALTHCARE BENEFITS AND OTHER PROGRAMS THAT DON'T REQUIRE ANNUAL APPROPRIATIONS HAS RISEN AND REVENUE HAS FALLEN SHORT OF PROJECTIONS A FORMER CHAIRMAN OF THE HOUSE BUDGET COMMITTEE MR PANETTA IS AMONG THE MOST ARDENT ADVOCATES OF DEFICIT REDUCTION IN THE CLINTON CAMP HIS NOMINATION WAS WARMLY RECEIVED BY BOTH DEMOCRATIC AND REPUBLICAN SENATORS THE ONLY HARSH QUESTIONING CAME WHEN REPUBLICANS CHALLENGED ASSERTIONS FROM MR CLINTON'S SPOKESMEN THAT THEY ARE SHOCKED BY THE SIZE OF THE DEFICIT THEY ARE INHERITING THE HEARING WAS A STARK CONTRAST TO THE ONE THE COMMITTEE HELD FOUR YEARS AGO WHEN BUDGET DIRECTOR RICHARD DARMAN SPENT HOURS TRYING TO DEFINE PRECISELY WHICH TAX INCREASES CONSTITUTED A VIOLATION OF PRESIDENT BUSH'S NO NEW TAXES VOW AND WHICH DIDN'T I AM GOING TO TAKE THE APPROACH THAT EVERYTHING'S ON THE TABLE MR PANETTA SAID YOU CANNOT FASHION A CREDIBLE PACKAGE ON DEFICIT REDUCTION AND TAKE REVENUES OFF THE TABLE AT ONE POINT MR PANETTA SAID HE WOULD FAVOR LOOKING AT THE IDEA OF SOME KIND OF A VAT VALUEADDED TAX OR CONSUMPTION TAX BUT STOPPED SHORT OF ENDORSING SUCH A PROPOSAL IN HIS WRITTEN TESTIMONY MR PANETTA POINTED TO SEVERAL DRAWBACKS TO SUCH TAXES MR PANETTA ALSO SAID THAT IF THE WHITE HOUSE AND CONGRESS ENACT A CREDIBLE DEFICITREDUCTION PROGRAM THEN WE OUGHT TO HAVE COOPERATION FROM THE FEDERAL RESERVE IN THE FORM OF LOWER INTEREST RATES TO CUSHION THE BLOW TO THE ECONOMY ALTHOUGH HE RESISTED REPEATED INVITATIONS TO PREDICT WHAT MR CLINTON'S PLAN WILL BE MR PANETTA SUGGESTED THAT THE OPTIMAL DEFICITREDUCTION PACKAGE WOULD BE ABOUT TWOTHIRDS SPENDING CUTS AND ONETHIRD TAX INCREASES MADE CLEAR THAT GROWTH IN GOVERNMENT BENEFIT PROGRAMS WILL HAVE TO BE RESTRAINED AND SAID SOME OF THE SAVINGS FROM CUTS IN THE DEFENSE BUDGET WILL HAVE TO GO TO DEFICIT REDUCTION RATHER THAN FINANCING DOMESTIC PROGRAMS ONE REVENUERAISING OPTION BEFORE THE PRESIDENTELECT IS TO REDUCE THE TAX DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT EXPENSES MR CLINTON'S ECONOMIC ADVISERS DELIVERED A MEMO LATE LAST MONTH THAT LISTED AS AN OPTION ALLOWING BUSINESS TO WRITE OFF ONLY 50 INSTEAD OF THE CURRENT 80 OF EXPENSES INCURRED FOR MEALS AND ENTERTAINMENT SEVERAL TOP AIDES ARE ADVOCATING THAT HE EMBRACE THE NOTION WHICH WOULD RAISE 16 BILLION IN THE FIRST YEAR AND NEARLY 12 BILLION OVER FOUR YEARS MR PANETTA ALSO SAID THAT VICE PRESIDENT DAN QUAYLE'S COMPETITIVENESS COUNCIL WILL BE DISBANDED AND THAT VICE PRESIDENTELECT AL GORE WANTS TO ESTABLISH A GROUP THAT WORKS WITH THE BUDGET OFFICE IN REVIEWING REGULATIONS SEPARATELY CAROL BROWNER MADE AN EFFORT TO ASSUAGE FEARS OF THE BUSINESS COMMUNITY DURING HEARINGS FOR HER CONFIRMATION AS HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY SHE WAS INTRODUCED NOT ONLY BY FLORIDA'S DEMOCRATIC GOV LAWTON CHILES BUT ITS CONSERVATIVE REPUBLICAN SENATOR CONNIE MACK SEN MACK TOLD THE COMMITTEE THOSE OF US WHO STRESS THE IMPORTANCE OF PROPERTY RIGHTS AGREE WITH CAROL AND THE NEW ADMINISTRATION THAT THERE NEED NOT BE CONFLICT BETWEEN ECONOMIC GROWTH AND ENVIRONMENTAL PROTECTION THE ADVERSARIAL RELATIONSHIP THAT NOW EXISTS IGNORES THE REAL COMPLEXITIES OF ENVIRONMENTAL AND BUSINESS PROBLEMS SAID MS BROWNER A FORMER LEGISLATIVE AIDE TO MR GORE IN THE SENATE AND CURRENT DIRECTOR OF FLORIDA'S DEPARTMENT OF ENVIRONMENTAL REGULATION WHEN ASKED ABOUT WHETHER WASTE TECHNOLOGIES INDUSTRIES A UNIT OF SWISSOWNED VON ROLL LTD SHOULD BE PERMITTED TO OPERATE A HAZARDOUSWASTE INCINERATOR OF WHICH VICE PRESIDENTELECT AL GORE HAS BEEN CRITICAL MS BROWNER SAID SHE DIDN'T WANT TO PREJUDGE THE ULTIMATE OUTCOME BECAUSE THE EPA RECENTLY GAVE THE GREEN LIGHT FOR A TEST BURN AT THE INCINERATOR A MOVE PREVIOUSLY OPPOSED BY MR GORE THE ISSUE IS LIKELY TO BE AMONG THE FIRST MS BROWNER DEALS WITH AS EPA ADMINISTRATOR TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9301120112 930112 KODAK SELECTS CJ STEFFEN FOR SENIOR POST TURNAROUND ARTIST TO BE FIRM'S FIRST OUTSIDER IN 20 YEARS IN A TOP SPOT BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO BREAKING WITH TRADITION REACHED OUTSIDE TO TAP A HONEYWELL INC TURNAROUND ARTIST CHRISTOPHER J STEFFEN AS CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT THE 50YEAROLD EXECUTIVE ASSUMES THE POST FEB 8 SUCCEEDING PAUL SMITH 57 WHO RETIRED IN DECEMBER KODAK'S STOCK JUMPED 325 TO CLOSE AT 45 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING MR STEFFEN HASN'T EVEN STARTED YET AND HE'S ADDED A BILLION DOLLARS TO THE COMPANY'S VALUE SAID FIRST BOSTON CORP ANALYST JACK BLACKSTOCK HIS APPOINTMENT MARKS THE FIRST TIME IN 20 YEARS THAT KODAK HAS TAPPED AN OUTSIDER FOR A SENIOR EXECUTIVE SPOT THE ROCHESTER NY PHOTOGRAPHIC GIANT WHICH HAS HAD LACKLUSTER EARNINGS IN ITS CORE FILM BUSINESS AND DIFFICULTY SELLING OFF TROUBLED BUSINESSES IN ITS INFORMATION UNIT CLEARLY HOPES TO DEMONSTRATE THAT IT IS TAKING A FRESH APPROACH TO PROBLEMS IF YOU TAKE A 18 BILLION RESTRUCTURING CHARGE AND YOUR EARNINGS DON'T BUDGE SOMETHING'S WRONG AND I THINK CHAIRMAN KAY WHITMORE IS REALIZING THIS PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON SAID DURING MR SMITH'S 10YEAR TENURE IN THE POSITION KODAK'S BALANCE SHEET DETERIORATED FROM ONE OF THE STRONGEST IN CORPORATE AMERICA TO ONE LADEN WITH DEBT MOSTLY FROM KODAK'S 51 BILLION ACQUISITION OF STERLING DRUG IN 1988 AS OF SEPT 30 THE COMPANY'S TOTAL DEBT WAS 103 BILLION MR STEFFEN WHO WROTE HONEYWELL'S SUCCESSFUL TURNAROUND PLAN ON NAPKINS DURING DINNER WITH MYSELF SHORTLY AFTER JOINING THE COMPANY IN 1989 HAS A REPUTATION AS AN AGGRESSIVE COSTCUTTER WHO DELIVERS ON PROMISES HE RESIGNED FROM HONEYWELL AS CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER EXECUTIVE VICE PRESIDENT AND BOARD MEMBER TWO WEEKS AGO BEFORE THAT HE WORKED FOR CHRYSLER CORP IN AN INTERVIEW HE SAID KODAK NEEDS A DEFINITIVE CHANGE HE SAID HE BELIEVES KODAK CAN BE MANAGED FOR BOTH GROWTH AND CASH NOTING THAT KODAK'S PORTFOLIO INCLUDES BUSINESSES THAT RANGE IN MATURITY FROM CHILDREN TO SENIOR CITIZENS IT IS EXPECTED THAT MR STEFFEN WILL BE NAMED A MEMBER OF KODAK'S BOARD AT THE NEXT DIRECTORS' MEETING FEB 12 IT WOULD BE EXTREMELY DIFFICULT TO DO THE JOB WITHOUT BEING A MEMBER OF THE BOARD HE SAID MR STEFFEN DECLINED TO COMMENT ON EXPECTATIONS BOTH INSIDE AND OUTSIDE THE COMPANY THAT KODAK WILL DISMISS 2000 TO 4000 WORKERS IN THE NEXT SEVERAL MONTHS BUT HE SAID THE BOARD TOLD HIM THERE WILL BE NO CHANGES IN SENIOR MANAGEMENT THE BOARD IS SAYING THAT THE MANAGEMENT TEAM THAT'S IN PLACE IS THE TEAM THAT'S GOING TO FIX KODAK HE SAID 9301120110 930112 RAWSTEEL PRODUCTION ROSE 01 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 01 LAST WEEK TO 1763000 TONS FROM 1762000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT FELL 15 FROM THE 1790000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 80 OF ITS CAPABILITY LAST WEEK COMPARED WITH 811 THE PREVIOUS WEEK AND 814 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9301120109 930112 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO JIM STEVER 49 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF PUBLIC POLICY AT THIS REGIONAL BELL TELECOMMUNICATIONS CONCERN MR STEVER HAD BEEN PRESIDENT OF PUBLIC POLICY FOR THE U S WEST COMMUNICATIONS UNIT THE POSITION IS NEWLY CREATED TO COVER PUBLIC POLICY FOR THE PARENT COMPANY AND ALL ITS UNITS 9301120108 930112 INTERNATIONAL TRAFALGAR HOUSE WINS CONTRACT LONDON TRAFALGAR HOUSE PLC SAID IT WON A CONTRACT FOR MORE THAN 100 MILLION 1533 MILLION TO BUILD A COKING PLANT FOR BETHLEHEM STEEL CORP OF THE US THE UK INDUSTRIAL CONGLOMERATE SAID THE CONTRACT INVOLVES REBUILDING BETHLEHEM'S NO 2 COKE OVEN BATTERY AT ITS BURNS HARBOR IND WORKS COKING INVOLVES TURNING COKE INTO METALLURGICAL COKE FOR USE IN THE BLAST FURNACE WHEN COMPLETED THE PLANT WILL PRODUCE ABOUT ONE MILLION METRIC TONS OF METALLURGICAL COKE A YEAR TRAFALGAR HOUSE SAID 9301120107 930112 BUSINESS BRIEF CITICORP SHAREHOLDER LEADS SAUDI GROUP IN 100 MILLION PURCHASE OF SAKS STAKE NEW YORK SAUDI INVESTORS LED BY A MAJOR SHAREHOLDER IN CITICORP HAVE ACQUIRED AN 11 EQUITY STAKE IN SPECIALTY RETAILER SAKS FIFTH AVENUE FOR 100 MILLION SAKS EXECUTIVES SAID THAT INVESTCORP BANK EC BASED IN BAHRAIN SOLD THE EQUITY POSITION TO A GROUP LED BY PRINCE ALWALEED BIN TALAL A NEPHEW OF KING FAHD OF SAUDI ARABIA AND THE CHAIRMAN OF UNITED SAUDI COMMERCIAL BANK WHICH ARRANGED THE SALE IN EARLY 1991 PRINCE ALWALEED INCREASED HIS 48 COMMON STOCK HOLDINGS IN CITICORP BY ACQUIRING 590 MILLION OF THE BANK'S PREFERRED STOCK CONVERTIBLE INTO 96 OF COMMON PRINCE ALWALEED'S TOTAL INVESTMENT IN CITICORP IS ESTIMATED AT 800 MILLION MAKING HIM THE BANK'S LARGEST SINGLE SHAREHOLDER INVESTCORP LED A BUYOUT OF SAKS FIFTH AVENUE FOR 16 BILLION IN 1990 AN AMOUNT SOME RETAIL OBSERVERS CONSIDERED EXCESSIVE SOON AFTERWARDS SAKS BEGAN TO EXPERIENCE MANY OF THE SAME RECESSIONRELATED PROBLEMS THAT AFFECTED OTHER PURVEYORS OF LUXURY GOODS AND IN FEBRUARY 1992 INVESTCORP AND ITS CLIENTS INVESTED AN ADDITIONAL 300 MILLION IN THE COMPANY THE RETAIL CHAIN USED 150 MILLION TO RETIRE SENIOR SUBORDINATED LONGTERM DEBT AND APPLIED THE OTHER 150 MILLION TO PAY DOWN ITS REVOLVING CREDIT FACILITY SAKS EXECUTIVES YESTERDAY SAID THAT INVESTCORP SUBSEQUENTLY SOUGHT TO PLACE SOME OF THAT EQUITY INVESTMENT WITH NEW INVESTORS LEADING TO THE SAUDI PURCHASE WE CONSIDER THIS AN ENCOURAGING DEVELOPMENT FOR SAKS BECAUSE IT INDICATES THAT MAJOR INTERNATIONAL INVESTORS ARE INTERESTED IN SUPPORTING OUR BUSINESS SAID GARY WITKIN A VICE CHAIRMAN AT SAKS MR WITKIN NOTED THAT THE EQUITY SALE COMPLETED ON DEC 22 1992 WAS BETWEEN INVESTCORP BANK AND THE SAUDIS AND WON'T HAVE ANY DIRECT IMPACT ON THE RETAIL CHAIN A SPOKESMAN FOR INVESTCORP SAID THE BANK CONTINUES TO HAVE FAITH IN SAKS NOTING THAT THE BANK HAS FOLLOWED A SIMILAR STRATEGY OF EQUITY SALES WITH ITS OTHER INVESTMENTS SAKS CLOSELY HELD BY AN INVESTMENT GROUP ASSEMBLED BY INVESTCORP DOESN'T DISCLOSE ITS FINANCIAL PERFORMANCE AN INVESTMENT DOCUMENT LAST YEAR INDICATED THAT SAKS MADE AN OPERATING PROFIT OF NEARLY 90 MILLION ON 127 BILLION IN REVENUE FOR THE YEAR ENDED JAN 31 1992 AFTER INTEREST AND DEPRECIATION HOWEVER THE RETAILER HAD A LOSS OF 155 MILLION THOSE FAMILIAR WITH SAKS SAY THE RETAILER HAS FARED BETTER SINCE THEN SAKS CURRENTLY OPERATES 49 RETAIL STORES NATIONWIDE SEVEN FREESTANDING A/X ARMANI EXCHANGE BOUTIQUES AND THREE CLEARINGHOUSE STORES LATER THIS YEAR THE COMPANY EXPECTS TO OPEN AT LEAST ONE MORE A/X ARMANI EXCHANGE UNIT 9301120106 930112 MONDAY'S MARKETS STOCKS RISE 1108 POINTS BONDS RALLY BARGAIN HUNTERS BUY AFTER RECENT SELLOFF S&P 500 NASDAQ RISE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES REBOUNDED AFTER A SHARP SELLOFF LAST WEEK BOND PRICES ROSE MODERATELY AND THE DOLLAR FELL ANALYSTS SAID INVESTORS WERE BARGAINHUNTING YESTERDAY AFTER LAST WEEK'S DECLINE LEFT MANY STOCKS AT ATTRACTIVE LEVELS THE DOW INDUSTRIALS PLUNGED NEARLY 54 POINTS IN THE FINAL TWO SESSIONS LAST WEEK WE'RE ENTITLED TO A BOUNCE AFTER LAST WEEK SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO THE SELLOFF WAS A BIT OVERDONE MR METZ EXPECTS STOCK PRICES TO MOVE HIGHER AGAIN TODAY BUT HE CAUTIONS THAT STRONG CROSSCURRENTS EXIST SHORTTERM TRADERS WANT PRICES TO KEEP RISING BUT LONGERTERM INVESTORS ARE GETTING NERVOUS THE SPECULATORS ARE INSATIABLE AND INVESTORS ARE DISENCHANTED MR METZ SAID NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA SAID TECHNOLOGY STOCKS DROVE THE MARKET YESTERDAY THE MOST EXCITING THING IS THE RECOVERY OF INTERNATIONAL BUSINESS MACHINES AND THE FURTHER ADVANCE IN THE TECHNOLOGY STOCKS HE SAID IBM JUMPED 1 1/4 OR 27 TO 47 3/4 STILL MR COLLINS WASN'T ENTHUSIASTIC ABOUT IBM'S PROSPECTS THERE'S NO REASON FOR PEOPLE TO RACE INTO IT HE SAID IBM HAS GOT TO PROVE SOMETHING BEFORE PEOPLE WILL BE BELIEVERS AGAIN RONALD SCHROEDER MANAGING DIRECTOR AT J& W SELIGMAN SAID HE EXPECTS MANY COMPANIES TO POST STRONG EARNINGS GROWTH THIS YEAR AS A RESULT OF STRINGENT COSTCUTTING HE PREDICTED STOCKS OF BIG COMPANIES WOULD PRODUCE TOTAL RETURNS OF 15 IN 1993 WITH SMALLER AND MEDIUMCAPITALIZATION STOCKS TURNING IN EVEN BETTER GAINS WITH THE COMBINATION OF COST REDUCTIONS AND THE IMPROVING ECONOMY I'M QUITE OPTIMISTIC WE'LL SEE SOME EARNINGS SURPRISES ON THE UPSIDE MR SCHROEDER SAID WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK MARKET INDEX GAINED 024 TO 9138 IN MAJOR MARKET ACTION STOCK PRICES MOVED HIGHER VOLUME TOTALED 2172 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1098 ISSUES ROSE AND 727 FELL THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16330 MARKS AND 12515 YEN COMPARED WITH 16465 MARKS AND 12535 YEN FRIDAY 9301120105 930112 MELLON'S NET ROSE 46 IN 4TH QUARTER PAYOUT WAS BOOSTED PITTSBURGH MELLON BANK CORP POSTED HIGHER FOURTHQUARTER AND YEAREND EARNINGS AND BOOSTED ITS DIVIDEND FOR THE FIRST TIME IN SIX YEARS MELLON WHICH SURPASSED SOME ANALYSTS' ESTIMATES FOR THE QUARTER AND THE YEAR POSTED A 46 RISE IN FOURTHQUARTER NET TO 105 MILLION OR 162 A SHARE FROM 72 MILLION OR 111 A SHARE A YEAR AGO THE QUARTER INCLUDED AN 18 MILLION RESTRUCTURING CHARGE FOR MELLON'S RECENT ACQUISITION OF MERITOR SAVINGS BANK PHILADELPHIA FOR 1992 MELLON'S NET ROSE 56 TO 437 MILLION OR 696 A SHARE FROM YEAREARLIER NET OF 280 MILLION OR 466 A SHARE THE RESULTS CAPPED A YEAR DURING WHICH MELLON AGREED TO TWO MAJOR ACQUISITIONS BOSTON CO A UNIT OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS UNIT FOR 145 BILLION IN CASH AND STOCK AND MERITOR FOR 181 MILLION IN CASH NONPERFORMING ASSETS DECLINED 16 IN THE QUARTER AND 36 IN 1992 A SIGN OF HOW FAR MELLON HAS COME FROM FINANCIAL DIFFICULTIES IN THE 1980S DENNIS SHEA OF MORGAN STANLEY WHO ESTIMATED 155 A SHARE FOR THE QUARTER SAID THE EARNINGS REFLECTED SUBSTANTIAL COST CUTS IN 1992 THEY'VE MANAGED THEIR COSTS VERY AGGRESSIVELY LOWERING HEAD COUNTS AND CUTTING BENEFIT COSTS HE SAID THAT'S CLEARLY HELPED THE PROFITABILITY OF THIS COMPANY YOU'RE GOING TO SEE MORE OF IT IN THE INTEGRATION OF MERITOR 9301120104 930112 FINANCING BUSINESS SUN TELEVISION & APPLIANCES INC SUN TELEVISION & APPLIANCES INC COLUMBUS OHIO SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 16 MILLION COMMON SHARES OF THE TOTAL ONE MILLION SHARES WILL BE SOLD BY THE COMPANY AND 600000 BY STOCKHOLDERS THE COMPANY AND SELLING STOCKHOLDERS HAVE GRANTED UNDERWRITERS A 30DAY OPTION TO PURCHASE UP TO AN ADDITIONAL 240000 COMMON SHARES TO COVER OVERALLOTMENTS MONTGOMERY SECURITIES IS THE LEAD UNDERWRITER THE SPECIALTY RETAILER OF CONSUMER ELECTRONICS AND HOME APPLIANCES SAID IT WILL USE NET PROCEEDS FROM THE OFFERING FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9301120103 930112 POLITICS & POLICY CLINTON'S RECIPE FOR COMMUNICATION HIGH TECH AND A FEW SHOTS OF REAGAN BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK WHEN IT COMES TO COMMUNICATING WITH THE PUBLIC THE CLINTON ADMINISTRATION PLANS TO BORROW SOME TRICKS FROM THE GREAT COMMUNICATOR ALREADY CLINTON TRANSITION OFFICIALS ARE PREPARING TO RESURRECT THE MESSAGE OF THE DAY A DAILY PLANNED MEDIA MESSAGE THAT RONALD REAGAN MASTERED AND GEORGE BUSH IGNORED MR CLINTON AND HIS ADVISERS ARE ALSO BORROWING SOME OF REAGAN'S OTHER COMMUNICATIONS TRICKS AND ADDING A FEW HIGHTECH DEVICES OF THEIR OWN AMONG THE NEW GIMMICKS BEING CONSIDERED BY THE CLINTON TEAM ARE WIDE USE OF SATELLITE FEEDS TO LOCAL TV STATIONS AN ELECTRONIC MAIL SYSTEM ACCESSIBLE TO THE PUBLIC BY PERSONAL COMPUTERS AND EVEN VIDEO TELEPHONES FOR THE WHITE HOUSE JEFF ELLER A CLINTON COMMUNICATIONS AIDE IS LIKELY TO MANAGE THE NEW HIGHTECH WHITE HOUSE MEDIA APPARATUS INSTEAD OF A PAPER PUSH HE AIMS TO USE COMPUTER NETWORKS AND OTHER SOPHISTICATED GEAR TO GET INFORMATION TO THE NEWS MEDIA AND THE PUBLIC HE PLANS TO MAKE LIBERAL USE OF SATELLITES TO FEED CLINTON POLICY STATEMENTS OR SPEECHES DIRECTLY TO LOCAL TV STATIONS THUS BYPASSING THE OFTEN MORE CRITICAL FILTER OF THE NATIONAL NEWS MEDIA HE ALSO WANTS TO MAKE THE NEW PRESIDENT AVAILABLE BY SATELLITE FOR INTERVIEWS WITH LOCAL TV REPORTERS THE CLINTON WHITE HOUSE MAY ALSO CONNECT DIRECTLY TO VOTERS VIA ELECTRONIC MAIL SENT BY PERSONAL COMPUTERS MR ELLER SAYS PRESIDENTIAL ORDERS SPEECHES AND OTHER COMMUNICATIONS COULD BE TRANSMITTED DIRECTLY TO THE PUBLIC OR AT LEAST THOSE WITH PCS THROUGH ELECTRONIC BULLETIN BOARDS GIVING THE WHITE HOUSE ANOTHER WAY TO BYPASS THE NEWS MEDIA IN REACHING THE PUBLIC AN ELECTRONIC LARRY KING THE CLINTON TEAM IS EVEN CONSIDERING PITCHES BY AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS INC TO INSTALL VIDEO PHONES AT THE WHITE HOUSE MR ELLER SAYS THE INCOMING ADMINISTRATION'S OVERALL AIM IS TO OPEN THE DOORS AND OPEN THE WINDOWS OF THE WHITE HOUSE AND GIVE THE AMERICAN PEOPLE THE OPPORTUNITY TO KNOW WHAT IS GOING ON EVERY DAY IN OTHER WAYS MR CLINTON'S COMMUNICATIONS STRATEGY WILL CLOSELY RESEMBLE FORMER PRESIDENT REAGAN'S IN STYLE IF NOT SUBSTANCE MR CLINTON'S TEAM IS BORROWING HEAVILY FROM MR REAGAN'S PLAY BOOK AND ARE PLANNING A TWOPRONGED STRATEGY TO KEEP HIS POPULARITY HIGH THE PLAN IS SIMPLE NEUTRALIZE ENEMIES AND KEEP POSITIVE IMAGES BEFORE THE PUBLIC LIKE REAGAN THE PRESIDENTELECT BELIEVES IN USING IMAGES AND STYLE TO SWAY THE PUBLIC HIS PLANNED BUS TRIP TO WASHINGTON SUNDAY IS INTENDED TO CONVEY THAT MR CLINTON IS UNUSUALLY OPEN IN REALITY HE OFTEN BRISTLES WHEN THE NEWS MEDIA WANTS TO COVER HIM JOGGING OR GOLFING IN AN INTERVIEW WITH THE WALL STREET JOURNAL LAST MONTH MR CLINTON SHOWED JUST HOW MUCH HE FEELS IMAGES MATTER HE SAID A MEDIA STRATEGY JUST MIGHT BE THE THING TO HELP RUSSIA THEY NEED TO HAVE SOME VERY SPECIFIC EVEN IF LIMITED EXAMPLES OF MARKET SUCCESSES THAT CAN BE PUT ON THE TELEVISION NEWS EVERY NIGHT IN MOSCOW HE SAID IT WAS AS IF MR CLINTON WAS SUGGESTING THAT BORIS YELTSIN HIRE A MICHAEL DEAVER WHO WAS MR REAGAN'S IMAGEMAKER OR A GEORGE STEPHANOPOULOS HIS OWN MEDIA MAESTRO IN THE CAMPAIGN MR STEPHANOPOULOS MASSAGED THE MESSAGE HE COORDINATED PRESS SECRETARIES FROM EACH STATE AS THE CAMPAIGN SOUGHT THE DISCIPLINE TO SPEAK WITH ONE VOICE HE IS EXPECTED TO PLAY THE SAME ROLE IN THE WHITE HOUSE WITH PRESS SECRETARIES FROM THE FEDERAL AGENCIES IF THE CAMPAIGN MODEL IS FOLLOWED A CONFERENCE CALL EACH MORNING WILL DELIVER THE DAY'S THEME AND TALKING POINTS THE WHITE HOUSE WILL ALSO TRY TO CONTROL ITS MESSAGE BY CONTROLLING THE VARIOUS ADMINISTRATION MESSENGERS MR STEPHANOPOULOS IS INVOLVED IN HIRING THE AGENCY PRESS SECRETARIES HE WILL GET 10 TO 12 NAMES FOR EACH JOB FROM CABINET SECRETARIES AND TRANSITION OFFICIALS NARROW THE LIST AND FORWARD THE NAMES TO MR CLINTON THE SECRETARIES WILL THEN GET THREE NAMES FROM MR CLINTON INCLUDING THE ONE HE PREFERS 9301120102 930112 INDUSTRY FOCUS JOINT VENTURES ARE ALL THE TALK IN THE REFINERY INDUSTRY POOR OUTLOOK SPURS SOME TO SEEK PARTNERSHIPS BUT OTHERS SEE PICKUP SOON BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON LAYING OUT THE DEPRESSING CONDITIONS OF THE OIL REFINING BUSINESS JEFFREY SERRA CHIEF EXECUTIVE OF PHIBRO ENERGY USA INC LIKENS IT TO A GAME OF MUSICAL CHAIRS THE MUSIC IS ABOUT TO STOP THE NUMBER OF CHAIRS IS BECOMING FEWER AND THE ONES STILL DANCING AROUND THE RING ARE GETTING NERVOUS MR SERRA TOLD AN AUDIENCE OF GLOOMY OIL EXECUTIVES LAST MONTH AT ARTHUR ANDERSEN & CO'S ANNUAL OIL SYMPOSIUM TO MR SERRA THE WAY MANY REFINERS CAN SNATCH A SEAT IN THE FACE OF RAPIDLY RISING ENVIRONMENTAL OUTLAYS STAGNANT DEMAND A WORLDWIDE RECESSION AND PLANT CLOSINGS IS TO FIND A PARTNER PREFERABLY A FOREIGN COUNTRY THAT PRODUCES OIL AND IS WILLING TO BEAR SOME OF THE RISKS BUT WHILE TALK ABOUT SUCH REFINING JOINT VENTURES HAS BEEN GOING ON AT MANY COMPANIES FOR YEARS INCLUDING AT SOME AS LARGE AS CHEVRON CORP VERY FEW DEALS HAVE BEEN COMPLETED SINCE TEXACO INC SET UP ITS LANDMARK VENTURE IN 1988 WITH SAUDI ARABIA THAT CREATED STAR ENTERPRISE OUT OF THREE TEXACO REFINERIES AND THOUSANDS OF SERVICE STATIONS THE DIFFICULTY OF NAILING DOWN A DEAL IS HIGHLIGHTED BY FINA INC'S THREEYEAR STRUGGLE TO SELL HALF OF ITS REFINERIES AND GASOLINE OUTLETS TO A GROUP OF PRIVATE SAUDI BUSINESSMEN FINA A DALLAS REGIONAL REFINER HAD ESTABLISHED A YEAREND 1992 DEADLINE FOR THE SAUDI INVESTORS TO WORK OUT DIFFICULTIES IN THAT COUNTRY AND HINTED THE COMPANY WOULD LOOK ELSEWHERE IF PROBLEMS WEREN'T SOLVED THE DEADLINE PASSED WITHOUT A DEAL AND LAST WEEK FINA SAID IT WOULD CONTINUE TO WAIT FOR THE SAUDIS MR SERRA OF PHIBRO A SUBSIDIARY OF SALOMON INC OFFERS A LIST OF A HALF DOZEN COMPANIES THAT HAVE BEEN LOOKING ARE LOOKING OR MIGHT CONSIDER A DEAL FOR EITHER A SINGLE REFINERY OR THEIR WHOLE SYSTEM HIS LIST INCLUDES FINA BRITISH PETROLEUM CO AND KERRMCGEE CORP BUT BECAUSE OF MARKETPLACE CHANGES A LOT OF INDUSTRY EXECUTIVES BELIEVE MANY DEALS WILL REMAIN NOTHING BUT TALK MOST OF THEM WILL NOT HAPPEN SAYS THOMAS MANNING A VICE PRESIDENT AT REFINING CONSULTANTS PURVIN & GERTZ INC WE'VE BEEN INVOLVED IN MANY NEGOTIATIONS AND THEY'RE DIFFICULT ADDS DANIEL YERGIN PRESIDENT OF CONSULTANTS CAMBRIDGE ENERGY RESEARCH ASSOCIATES THERE WILL BE MORE DEALS BUT NOT LOTS MORE DEALS MOST OF THE OILPRODUCING COUNTRIES CONSIDERING JOINT VENTURES ARE MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND DON'T HAVE UNLIMITED AMOUNTS OF CASH THE MONEY THEY DO HAVE THEY HAVE BEEN SPENDING ON EXPANDING THEIR OILPRODUCTION CAPACITY THERE'S A GENERAL LACK OF CAPITAL IN THE PRODUCING NATIONS AND THIS GOES FOR SAUDIA ARABIA AS WELL AS THE LESSWEALTHY PRODUCING NATIONS SAID WILLIAM RANDOL OIL ANALYST AT SALOMON BROTHERS INC MR YERGIN SAYS MUCH OF THE INCENTIVE FOR OILPRODUCING COUNTRIES HAS LESSENED SINCE THE TEXACO DEAL THEN MANY OPEC MEMBERS WERE PRODUCING CRUDE WELL BELOW THEIR CAPACITY AND WANTED MORE MARKETS FOR THEIR OIL TODAY MANY ARE PRODUCING FULL OUT SO THE FEAR OF MARKET ACCESS HAS DISAPPEARED HE SAYS DAVID HOYER PRESIDENT OF CHEVRON'S DOMESTIC REFINING AND MARKETING UNIT SAID THAT OVER THE PAST FIVE YEARS THE COMPANY HAS HELD JOINTVENTURE DISCUSSIONS WITH AS MANY AS FIVE OILPRODUCING COUNTRIES WITH SOME TALKS REMAINING PRELIMINARY AND SOME LASTING FOR EIGHT MONTHS NONE HAS BEEN FINALIZED AND THE MOST RECENT CONCERNS HAVE BEEN RELATED TO THE HUGE ENVIRONMENTAL COSTS REFINERS WILL BEAR THIS DECADE FROM THE CLEAN AIR ACT AND OTHER REGULATIONS BY SOME ESTIMATES INDUSTRY SPENDING ON ENVIRONMENTAL COMPLIANCE COULD APPROACH 80 BILLION THIS DECADE CHEVRON ALONE EXPECTS TO SPEND 2 BILLION OVER THE NEXT FIVE YEARS WE'VE NOTICED IN THE PAST TWO TO THREE YEARS THAT THERE'S GREAT TREPIDATION ON THE PART OF NONUS COMPANIES INCLUDING PRODUCING COUNTRIES ABOUT THE ENVIRONMENTAL RULES IN THE US MR HOYER SAYS ADD TO THAT 1992 LOSSES FOR MANY REFINERS COMBINED WITH EXPECTATIONS OF NEXTTONO INCREASE IN GASOLINE DEMAND FOR YEARS AND BUYERS HAVE BEEN WARY WILL US REFINING EVER GET BETTER THAT'S THE 64 MILLION QUESTION FOR A LOT OF US SAYS KENNETH DERR CHEVRON CHAIRMAN A LOT OF BIG COMPANIES LIKE OURS ARE REDUCING REFINING CAPACITY PEOPLE ARE SHUTTING DOWN INDEED OVER THE PAST 18 MONTHS MORE THAN A DOZEN HAVE CLOSED MR MANNING OF PURVIN & GERTZ SAYS THAT REFINING WILL RETURN TO A REASONABLE LEVEL OF PROFITABILITY THIS YEAR AND BEYOND AND THAT 1992'S UNUSUALLY WEAK EARNINGS WERE AN ANOMALY THAT COULD REDUCE REFINERS' APPETITE FOR A JOINTVENTURE PARTNER HE BELIEVES A LOT OF REFINERS PARTICULARLY STRONGER ONES WITH NEWER EQUIPMENT DON'T NEED FOREIGN PARTNERS SAYS ROGER HEMMINGHAUS CHAIRMAN OF DIAMOND SHAMROCK CORP A REGIONAL REFINER AND MARKETER BASED IN SAN ANTONIO WE DON'T SEE THE BENEFIT OF BRINGING A LARGE PARTNER INTO OUR BUSINESS HE SAYS DIAMOND SHAMROCK'S AVERAGE EQUIPMENT IS SEVEN YEARS OLD COMPARED WITH AN INDUSTRY NORM OF CLOSER TO 25 YEARS HE SAYS AS A RESULT DIAMOND SHAMROCK DOESN'T HAVE THE NEED FOR THE MASSIVE CAPITAL INFUSION MANY OTHERS DO AS A RESULT OF ENVIRONMENTAL LAWS MR HEMMINGHAUS SAID HE HAS HOWEVER APPROACHED A FOREIGN OIL PRODUCER ABOUT JOINTLY ACQUIRING ANOTHER REFINERY HE SAID THE COUNTRY COULD BRING THE CRUDE OIL AND DIAMOND SHAMROCK WOULD PROVIDE THE OPERATING EXPERTISE WHAT IT COMES DOWN TO IS THAT THE JOINT VENTURES THAT HAVE BEEN COMPLETED HAD UNIQUE CIRCUMSTANCES IN TEXACO'S CASE THE COMPANY WAS EMBROILED IN LITIGATION WITH PENNZOIL CO THAT ENDED UP COSTING TEXACO 3 BILLION A BANKRUPTCYLAW FILING AND A PROXY FIGHT WITH CARL ICAHN TEXACO DESPERATELY NEEDED MONEY AND THE SAUDIS MADE THE COMMITMENT THEY WANTED TO PLACE THEIR CRUDE INTO OWNERSHIP FACILITIES AND THAT WORKED OUT BEAUTIFULLY MR MANNING SAYS MORE RECENTLY SHELL OIL CO'S PLAN TO CREATE A JOINT VENTURE WITH MEXICO'S NATIONAL OIL COMPANY BY SELLING IT HALF OF SHELL'S REFINERY IN DEER PARK TEXAS ALSO WORKS BECAUSE OF UNIQUE CONDITIONS MEXICO HAS AN EXCESS SUPPLY OF HEAVY CRUDE OIL THAT IS HARD TO PROCESS AND A SHORTAGE OF UNLEADED GASOLINE WITH SHELL IT GETS A SECURE MARKET FOR ITS CRUDE AND A REGULAR SUPPLY OF GASOLINE FROM THE REFINERY SHELL A UNIT OF ROYAL DUTCH/SHELL GROUP IS CASH SHORT AND GETS A 1 BILLION REFINERY UPGRADE SO IT CAN PROCESS MORE HEAVY CRUDE INDUSTRY EXECUTIVES SAY THAT DEALS THAT HAVEN'T HAPPENED ARE OFTEN THWARTED BY POLITICAL ROADBLOCKS FOR INSTANCE COASTAL CORP WAS LOOKING TO SELL ITS ENTIRE SYSTEM AND WAS REPORTEDLY CLOSE TO SOME ARRANGEMENT WITH IRAQ BUT THE IRAQI INVASION OF KUWAIT SCOTCHED ANY DEAL THE GROUP TRYING TO BUY HALF OF FINA'S REFINING AND MARKETING SYSTEM DELTA INTERNATIONAL HAS RUN INTO DIFFICULTIES WITHIN SAUDI ARABIA BECAUSE IT IS THE FIRST VENTURE OF ITS KIND TO BE PRIVATE RATHER THAN AN ARM OF THE KINGDOM DELTA HAS YET TO RECEIVE A LICENSE FROM THE GOVERNMENT TO OPERATE MR RANDOL OF SALOMON BROTHERS SAYS HE DOESN'T KNOW THE DETAILS OF DELTA'S PROBLEMS BUT SAYS DEALING WITH THE SAUDIS WHETHER IT'S THE GOVERNMENT OR INDIVIDUALS IS VERY DIFFICULT I'VE TRIED TO DISCUSS POTENTIAL DEALS AND IT'S LIKE PUSHING ON STRING 9301120101 930112 WHO'S NEWS GENESCO INC GENESCO INC NASHVILLE TENN E DOUGLAS GRINDSTAFF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF SHOES AND MEN'S APPAREL WAS NAMED TO THE ADDED POST OF CHIEF EXECUTIVE OFFICER MR GRINDSTAFF 52 YEARS OLD SUCCEEDS WILLIAM S WIRE II 61 WHO REMAINS CHAIRMAN AND A DIRECTOR OF THE COMPANY 9301120100 930112 OUSTER OF SUNBEAM'S CHIEF FOLLOWED COMPLAINTS BY MANAGERS OF OVERWORK BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL THE FIRING OF PAUL B KAZARIAN AS CHIEF EXECUTIVE OFFICER OF SUNBEAMOSTER CO FOLLOWED SENIOR MANAGERS' THREATS TO RESIGN UNLESS CHANGES WERE MADE IN HIS DEMANDING MANAGEMENT STYLE SAY PEOPLE FAMILIAR WITH THE COMPANY'S INTERNAL AFFAIRS MR KAZARIAN 37 YEARS OLD WAS DISMISSED UNEXPECTEDLY SATURDAY WHEN THE APPLIANCE MAKER'S BOARD SAID IT HAD LOST CONFIDENCE IN HIS LEADERSHIP HIS DEPARTURE TOUCHED OFF A SELLOFF IN SUNBEAM'S STOCK WHICH CLOSED YESTERDAY AT 15875 A SHARE DOWN 875 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE VOLUME OF MORE THAN 900000 SHARES WAS ABOUT THREE TIMES ITS USUAL LEVEL MR KAZARIAN'S INTENSE WORK STYLE WHICH INCLUDED EXPECTING TOP MANAGERS TO WORK SEVEN DAYS A WEEK WAS AN ASSET THAT HELPED LEAD SUNBEAM'S PREDECESSOR COMPANY ALLEGHENY INTERNATIONAL OF PITTSBURGH OUT OF BANKRUPTCYLAW PROTECTION THREE YEARS AGO SUNBEAM WHICH IS BASED IN PROVIDENCE RI WENT PUBLIC LAST AUGUST AT 1250 A SHARE AND HAS REPORTED IMPROVED EARNINGS AND REVENUE SINCE THEN BUT AS THE COMPANY GAINED STRENGTH MR KAZARIAN'S WORK ETHIC BECAME LESS EFFECTIVE ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY CULMINATING IN THE RESIGNATION THREATS THAT PRECEDED HIS DEPARTURE THE SPECIFICS OF MR KAZARIAN'S DIFFERENCES WITH OTHER MANAGEMENT COULDN'T BE LEARNED A SUNBEAMOSTER SPOKESMAN DECLINED TO COMMENT ON THE TERMINATION AND SAID SENIOR MANAGEMENT WASN'T AVAILABLE KAZARIAN VIEWED HIS JOB AS A 24HOUR SEVENDAYAWEEK OCCUPATION SAID ANDREW SILVER AN ANALYST AT DILLON READ & CO AN INVESTMENT BANK IN NEW YORK IT REACHES A POINT WHERE IT CAUSES A FAIR AMOUNT OF BURNOUT IT RANKLES THE OPERATING PEOPLE MR KAZARIAN SAID HE HAD RECEIVED NO COMPLAINTS ABOUT HIS MANAGEMENT STYLE AND DIDN'T EXPECT ANY SINCE SUNBEAMOSTER WAS VERY VERY GENEROUS IN ITS COMPENSATION TO TOP SALES MARKETING AND OPERATIONS STAFFERS MANY HIGHRANKING EMPLOYEES RECEIVED BONUSES OF 25 OF THEIR SALARIES IN 1992 MR KAZARIAN SAID WHILE OTHERS WERE GRANTED 50 PAY INCREASES MR KAZARIAN SAID HE RECEIVED A BONUS JUST TWO WEEKS AGO IN HIS OWN ANNUAL REVIEW WHEN HE ADDED NO MENTION WAS MADE OF PROBLEMS IN RETURN FOR GOOD PAY HOWEVER SENIOR MANAGEMENT WAS EXPECTED TO CARRY BEEPERS 24 HOURS A DAY IT WAS KIND OF A PRIVILEGE YOU KNOW YOU'RE VALUABLE TO THE COMPANY AS AN INDIVIDUAL MR KAZARIAN CONTENDED HE ADDED SOME PEOPLE MAY SAY IT'S TOUGH BUT IF YOU THINK OF IT AS LEARNING IT CAN BE PHENOMENALLY FUN MR KAZARIAN SAID HE WAS TOLD OF THE BOARD'S DECISION AT 11 PM SATURDAY IN A PHONE CALL TO HIS HOTEL IN CHICAGO WHERE HE HAD BEEN PREPARING FOR A TRADE SHOW THE NEXT DAY THE FORMER CHAIRMAN SAID HE WASN'T GIVEN AN EXPLANATION FOR THE DISMISSAL AND HASN'T BEEN CONTACTED BY THE BOARD SINCE THEN FOR THE THIRD QUARTER SUNBEAMOSTER EARNED 119 MILLION OR 14 CENTS A SHARE UP 41 FROM A YEAR EARLIER SALES ROSE 11 TO 2001 MILLION FROM 1804 MILLION 9301120098 930112 INTERNATIONAL OWNERSHIP OF AIRLINE IN PHILIPPINES APPEARS ON VERGE OF CHANGE MANILA THE PHILIPPINES COMPLEX FINANCIAL MANEUVERING AMONG OWNERS OF NEWLY PRIVATIZED PHILIPPINE AIRLINES MAY SHIFT CONTROL OF THE COMPANY TO A FILIPINO BANKER WHO HAD CLOSE TIES TO LATE PRESIDENT FERDINAND MARCOS THE ARRANGEMENT APPEARS TO INVOLVE A TRANSFER OF CONTROL FROM PAL CHAIRMAN ANTONIO COJUANGCO JR WHO LED A GROUP THAT BOUGHT CONTROL OF THE AIRLINE FROM THE GOVERNMENT A YEAR AGO TO LUCIO TAN CHAIRMAN OF ALLIED BANKING CORP PEOPLE FAMILIAR WITH THE SITUATION SAID THAT MR TAN WHO WASN'T AMONG THE ORIGINAL INVESTORS IN THE AIRLINE HAS ACCUMULATED A CONTROLLING STAKE THROUGH SHARE PURCHASES AND LOANS TO PAL INVESTORS IF HE ASSUMES CONTROL WHICH SOME OBSERVERS HAVE SAID IS IMMINENT IT WOULD RAISE QUESTIONS ABOUT PAL'S COURSE AND THE WAY THE GOVERNMENT SCREENS BIDDERS AND STRUCTURES MAJOR PRIVATIZATIONS ONE SENIOR GOVERNMENT OFFICIAL CONFIRMED THAT MR TAN WHO MADE A FORTUNE IN BEER AND TOBACCO WAS TO BRIEF GOVERNMENT OFFICIALS ABOUT HIS INTENTIONS CONCERNING PAL AND THAT THE AIRLINE MAY ANNOUNCE A CHANGE IN OWNERSHIP AND SENIOR MANAGEMENT AS EARLY AS THIS WEEK UNDER TERMS OF THE PRIVATIZATION PAL CAN'T BE RESOLD FOR TWO YEARS AFTER THE INITIAL SALE BUT THERE IS NO PROHIBITION AGAINST THE NEW INVESTORS' SELLING SHARES IN THE HOLDING COMPANY THEY FORMED TO PURCHASE THE AIRLINE NEITHER MR COJUANGCO NOR MR TAN COULD BE REACHED FOR COMMENT A PAL SPOKESMAN SAID THAT MR COJUANGCO WAS STILL CHAIRMAN OF THE AIRLINE BANKING AND AIRLINE INDUSTRY SOURCES SAID MR TAN LENT MONEY TO MR COJUANGCO AND OTHER MEMBERS OF THE CONSORTIUM THAT BOUGHT 67 OF PAL FOR 369 MILLION LAST JANUARY IN THE COUNTRY'S BIGGEST PRIVATIZATION TO DATE BETWEEN HIS LOANS SHARES AND ALLIANCES WITH OTHER INVESTORS MR TAN IS BELIEVED TO CONTROL 40 OF THE HOLDING COMPANY 9301120097 930112 OTC FOCUS COMPOSITE INDEX REBOUNDS CLIMBING 519 POINTS TO RECORD HIGH OF 68240 BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET REBOUNDED FROM A SELLOFF LATE LAST WEEK TO HIT A RECORD BUT TRADERS WERE LEFT PUZZLING OVER THE CURIOUS CASE OF ALCO INTERNATIONAL GROUP BOOSTED BY RENEWED STRENGTH IN BOND PRICES AND EASING OF WORRIES ABOUT THE SIMMERING SITUATION IN THE MIDDLE EAST THE NASDAQ COMPOSITE INDEX CLIMBED 519 OR 077 TO A RECORD 68240 JUST ABOVE THE PREVIOUS HIGH OF 68185 SET LAST WEDNESDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1417 TO 1155 ON TOTAL VOLUME OF 1957 MILLION DOWN FROM FRIDAY'S 2328 MILLION SHARES IT'S A BROADBASED TECHNICAL BOUNCE AS A REACTION TO LAST WEEK'S SELLOFF SAID CHARLES HOWLEY HEAD OF OTC TRADING AT SOUNDVIEW FINANCIAL GROUP THERE IS A LACK OF SELLERS MORE THAN A LOT OF BUYERS WHILE THE OVERTHECOUNTER MARKET WAS HEADED HIGHER YESTERDAY SHARES OF ALCO INTERNATIONAL WERE GYRATING WILDLY THE STOCK WHICH CLOSED FRIDAY AT 7 31/32 WAS QUOTED BRIEFLY AT 1 A SHARE YESTERDAY BEFORE ENDING AT 7 7/8 ACCORDING TO REUTERS HOLDINGS' ELECTRONIC INSTINET SYSTEM THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID ALCO'S SHARES WERE HALTED ON THE NASDAQ COMPUTER RECORDING SYSTEM EVEN THOUGH THE SHARES CONTINUED TO BE TRADED ALCO WAS HALTED YESTERDAY FOR QUALIFICATIONS REASONS SAID NASDAQ SPOKESMAN JIM SPELLMAN ALTHOUGH THE NASD WON'T SAY WHICH STANDARDS ALCO IS VIOLATING THE QUALIFICATIONS FOR BEING LISTED ON NASDAQ INCLUDE HAVING TWO MARKET MAKERS TOTAL ASSETS OF 2 MILLION A PUBLIC FLOAT OF 100000 SHARES A BID PRICE OF 1 AND AT LEAST 300 SHAREHOLDERS MANAGERS OF ALCO DIDN'T RETURN PHONE CALLS ACCORDING TO INSTINET 100 SHARES TRADED AT 1259 PM EST AT 1 A SHARE AND THE NEXT TRADE OCCURRED 23 MINUTES LATER AT 5 A SHARE THE STOCK ALSO HAD BEEN HALTED ON FRIDAY FOR DISSEMINATION OF NEWS THE COMPANY SAID THEN THAT ITS INVESTMENT BANKER RECEIVED A LETTER FROM AN INTERNATIONAL LAW FIRM STATING THAT SOME OF THE LAW FIRM'S CLIENTS ARE INTERESTED IN BEGINNING FORMAL NEGOTIATIONS AIMED AT MAKING A FRIENDLY TENDER OFFER TO ACQUIRE MORE THAN 80 OF ALCO'S STOCK OUTSTANDING NONE OF THE INTERESTED PARTIES WERE IDENTIFIED NOR WERE ANY POTENTIAL ACQUISITION PRICES DISCLOSED YESTERDAY WASN'T THE FIRST TIME THIS SMALL SAN DIEGO CALIF COMPANY STIRRED UP A COMMOTION AMONG TRADERS IN SEPTEMBER ALCO LAUNCHED A 54 BILLION SLANDER SUIT AGAINST SHORT SELLERS OR TRADERS WHO BET THAT A STOCK WILL DECLINE IN PRICE THE COMPANY ASSERTED THAT THE SHORTS SPREAD FALSE AND DEFAMATORY INFORMATION THAT ROBBED IT OF POTENTIAL REVENUES ALCO IS ENGAGED IN THE TRADES OF CARGO SHIPPING AND MEDICAL PRODUCTS IN THE FALL ALCO'S STOCK ROSE ON PROJECTIONS THAT ONE OF ITS PRODUCTS THE BARRIER INTEGRITY MONITOR WOULD BE A BIG SELLER THE DEVICE ALERTS OPERATINGROOM STAFFERS WHEN A SURGICAL GLOVE OR GOWN GETS A HOLE POSSIBLY EXPOSING THE SURGICAL WORKER TO TAINTED BLOOD SEGA EXPECTS TO REPORT DOMESTIC RETAIL SALES OF 328 BILLION FOR ITS YEAR ENDING MARCH 31 1994 RICHARD BURNS SEGA'S SALES VICE PRESIDENT SAID THE COMPANY SHOULD REPORT 18 BILLION IN SALES FOR FISCAL 1993 SEGA HAD SALES OF 800 MILLION FOR FISCAL 1992 WILLIAM ROTHE HEAD OF NASDAQ TRADING AT ALEX BROWN & SONS SAID MOST INVESTORS ARE WAITING TO SEE FOURTHQUARTER EARNINGS REPORTS WHICH WILL BEGIN FLOWING THIS WEEK HE SAID INVESTORS AREN'T MAKING DECISIONS BASED ON CONTINUING TENSIONS IN THE MIDDLE EAST AS THEY DID IN 1991 PRIOR TO AND DURING THE PERSIAN GULF CRISIS THE CURRENT SITUATION IN IRAQ DOESN'T HAVE MUCH AFFECT ON INVESTMENT DECISIONS BUT IT PROBABLY DOES CAUSE SOME INVESTORS TO PAUSE HE SAID LEADING THE MARKET AGAIN INTEL JUMPED 3 5/8 TO 102 3/8 ON 33 MILLION SHARES AS THE DAY'S MOST ACTIVE STOCK SHARES OF INTEL HAVE GAINED 184 SINCE JAN 4 THE GIANT SEMICONDUCTOR COMPANY WAS MENTIONED IN YESTERDAY'S ABREAST OF THE MARKET COLUMN AS A GOOD INVESTMENT REGARDLESS OF WHAT POLICIES THE NEW CLINTON ADMINISTRATION MIGHT PURSUE TECHNOLOGY AND MEDICALRELATED STOCKS ALSO HELPED LIFT THE MARKET MICROSOFT JUMPED 2 TO 89 1/8 APPLE COMPUTER ROSE 1 7/8 TO 64 1/8 AND BMC SOFTWARE LEAPED 3 3/8 TO 78 7/8 SEVERAL MEDICAL STOCKS THAT HAD BEEN KNOCKED DOWN LAST WEEK REGAINED SOME LOST GROUND US HEALTHCARE CLIMBED 1 3/8 TO 46 1/8 AND BIOGEN POPPED UP 2 TO 45 1/4 IMRS INC PLUNGED 5 1/2 TO 19 LATE FRIDAY AFTERNOON THE STAMFORD CONN NETWORKING COMPANY SAID IT EXPECTS TO EARN ABOUT 18 CENTS A SHARE IN ITS SECOND QUARTER ENDED DEC 31 COMPARED WITH 16 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID DELAYS IN THE CLOSING OF CERTAIN LARGE SOFTWARE SALES IN THE SECOND QUARTER CONTRIBUTED TO SLOWER THAN EXPECTED DOMESTIC SALES GROWTH ROBERTSON STEPHENS & CO ANALYST PETER ROGERS LOWERED HIS FISCAL 1993 ESTIMATE TO 78 CENTS A SHARE FROM 81 CENTS A SHARE ST PAUL FEDERAL BANCORP FOR SAVINGS INC CLIMBED 7/8 TO 23 3/8 THE CHICAGO COMPANY REPORTED FOURTHQUARTER EARNINGS OF 76 CENTS A SHARE UP FROM 59 CENTS A SHARE A YEAR EARLIER FOR THE YEAR THE FINANCIAL SERVICES HOLDING COMPANY EARNED 3 A SHARE UP FROM LAST YEAR'S 222 A SHARE ELECTRO SCIENTIFIC INDUSTRIES JUMPED 5/8 TO 5 3/4 THE PORTLAND ORE COMPANY REPORTED EARNINGS OF SIX CENTS A SHARE FOR ITS SECOND QUARTER ENDED NOV 30 REVERSING A LOSS OF 27 CENTS A SHARE A YEAR EARLIER THE RESULTS ARE BETTER THAN THE AVERAGE ESTIMATE OF THREE CENTS A SHARE PROVIDED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM ELECTRO SCIENTIFIC MAKES COMPUTERCONTROLLED LASER SYSTEMS USED IN THE PRODUCTION AND TESTING OF ELECTRONIC COMPONENTS CALGENE DROPPED 1 1/4 TO 16 5/8 CALGENE'S SHARES WERE HIT BY NEWS THAT CAMPBELL SOUP CO HAS NO IMMEDIATE PLANS TO USE THE COMPANY'S GENETICALLY ENGINEERED TOMATOES IN ITS SOUPS ALTHOUGH CAMPBELL FUNDED RESEARCH FOR THE TOMATOES THE COMPANY UNDER PRESSURE FROM CONSUMERS ABOUT THE REGULATION OF GENETICALLY ENGINEERED FOODS SAID IT DOESN'T INTEND TO USE ANY BIOENGINEERED PRODUCTS IN ANY OF ITS PRODUCTS CALGENE DAVIS CALIF IS AN AGRIBUSINESS BIOTECHNOLOGY COMPANY 9301120096 930112 LEISURE & ARTS ON SPORTS FINS' RISE TO THE OCCASION AGAINST CHARGERS BY FREDERICK C KLEIN MIAMI PLAYER FREE AGENCY WILL COME TO THE NATIONAL FOOTBALL LEAGUE ON A SIZABLE SCALE NEXT SEASON AS A RESULT OF A LABOR AGREEMENT NEGOTIATED UNDER WHAT AMOUNTED TO JUDICIAL FIAT BUT A GLIMPSE OF THE SORT OF CHANGES FANS MIGHT EXPECT WAS PROVIDED IN THE SECOND QUARTER OF AN AMERICAN CONFERENCE PLAYOFF GAME HERE SUNDAY THE MIAMI DOLPHINS AND SAN DIEGO CHARGERS ENTERED THE PERIOD TIED AT ZERO ON A WARM RAINY LATE AFTERNOON IN JOE ROBBIE STADIUM THEY CAME OUT OF IT WITH THE DOLPHINS AHEAD 210 AND HEADED FOR A DATE HERE THE FOLLOWING SABBATH WITH THE BUFFALO BILLS IN A SUPER BOWL SEMIFINAL TWO OF THE DOLPHINS' THREE TOUCHDOWNS IN THE QUARTER WERE SCORED BY KEITH JACKSON WHO HAD TOILED WITH DISTINCTION FOR THE PHILADELPHIA EAGLES FOR THE PREVIOUS FOUR SEASONS IN ONE OF THE COURT RULINGS THAT MADE IT CLEAR EVEN TO NFL TEAM OWNERS THAT FREE AGENCY WAS INEVITABLE THE HEARTY TIGHT END AND SOME OTHERS HAD BEEN LIBERATED TO WORK WHERE THEY CHOSE ENTICED BY A REPORTED FOURYEAR 6 MILLION DEAL IN LATE SEPTEMBER HE CHOSE USUALLY SUNNY MIAMI MIAMI ALREADY WAS LONG ON PASS RECEIVERS BUT NOBODY SAID ANYTHING ABOUT FAIR AND IN HIS 13 GAMES AS A FIN JACKSON BECAME A FAVORITE TARGET OF THE EVER MARVELOUS DAN MARINO THAT HE CONTINUED IN THIS ROLE WHILE THE DOLPHINS WERE UNPLUGGING THE CHARGERS 310 WAS NOT LOST ON DON SHULA THE VETERAN MIAMI COACH KEITH'S A FINE PLAYER WHO KNOWS A LOT ABOUT GETTING OPEN SAID SHULA IN APPARENT REFERENCE TO JACKSON'S ONFIELD TALENTS NOT HIS CONTRACTUAL ONES SAID JACKSON TODAY'S OFFENSE WAS WHAT I HAD IN MIND WHEN I CAME TO MIAMI THAT JACKSON'S ACCENT WAS ON THE TODAY WAS NO ACCIDENT BECAUSE HE AND HIS MATES HAD SHOWED UP SUNDAY AS ONE OF THE MOST LUKEWARM TWOPOINT FAVORITES EVER TO TAKE ITS HOME TURF IN A SUPER BOWL TOURNAMENT CONTEST YES THE DOLPHINS HAD WON THE AFC EASTERN DIVISION TITLE WITH AN 115 WONLOST RECORD AND YES THEY'D EARNED AN EDGE OVER THE 115 CHARGERS IN ONE OR ANOTHER OF THE CRITERIA BY WHICH THE NFL DETERMINES ITS PLAYOFF SCHEDULE BUT AFTER STARTING THE SEASON WITH SIX STRAIGHT WINS MIAMI EMBRACED MEDIOCRITY SPLITTING ITS LAST 10 GAMES AND STRUGGLING TO SCORE WHILE EDGING THE BOTTOMBUMPING NEW ENGLAND PATRIOTS AND NEW YORK JETS IN ITS LAST TWO OUTINGS SAN DIEGO MEANTIME ABSOLUTELY ROARED CAPTURING 11 OF 12 GAMES AFTER AN 04 START AND OUTSCORING ITS FOES BY A TOTAL OF 56 POINTS IN ITS LAST THREE INCLUDING A 170 WIN OVER KANSAS CITY IN THE PLAYOFF'S FIRST ROUND IT WAS NOTEWORTHY THAT THE DOLPHINS' RECENT WOES WERE MAINLY OFFENSIVE BECAUSE THIS IS A CREW THAT INCLUDES NOT ONLY THE 31YEAROLD QUARTERBACK MARINO WHO WILL OWN EVERY IMPORTANT NFL CAREER PASSING RECORD IF HE REMAINS HEALTHY LONG ENOUGH BUT ALSO THE MARKS BROTHERS MARK DUPER AND MARK CLAYTON SPEEDY RECEIVERS WHO HELPED LEAD THEM TO THE 1985 SUPER BOWL ADD A TIGHT END OF JACKSON'S QUALITY AND YOU HAVE THE MAKINGS OF A PASSING ATTACK OF RARE DEPTH AND BALANCE THE DOLPHIN DEFENSE NEVER A STRONG POINT IN RECENT YEARS ALSO HAD FIRMED UP WITH THE ADDITION OF BRYAN COX AN AGGRESSIVE SECONDYEAR LINEBACKER ADD ROOKIE DEFENSIVE END MARCO COLEMAN AND DEFENSIVE BACK TROY VINCENT AND YOU HAD A FORMULA FOR FORMIDABILITY THERE SO WHAT WAS THE MATTER OF LATE IN A LOT OF GAMES A FEW PLAYS MAKE THE DIFFERENCE BETWEEN WINNING BIG AND JUST GETTING BY OFFERED MARINO TODAY WE HIT THE BIG PLAYS WHEN WE WERE GIVEN THE OPPORTUNITY THE INITIAL BIG PLAYS THAT DISCHARGED SAN DIEGO WERE DEFENSIVE THEY CAME AT THE EXPENSE OF STAN HUMPHRIES THE QUARTERBACK OBTAINED FROM THE WASHINGTON REDSKINS FOR A BARGAINBASEMENT THIRDROUND DRAFT CHOICE DURING THE EXHIBITION SEASON GIVEN A CHANCE TO SHINE THE 27YEAROLD FORMER BACKUP EMERGED AS THE LEAGUE'S FIFTHLEADING PASSER IN YARDAGE GAINED DURING THE REGULAR SEASON BUT IN SUNDAY'S DECISIVE SECOND QUARTER HIS MAIN RECEIVERS WERE DOLPHINS VINCENT PICKED OFF TWO HUMPHRIES PASSES AND COX ONE EACH INTERCEPTION WAS IN SAN DIEGO TERRITORY AND EACH LED TO A MIAMI TOUCHDOWN THE FIRST TD CAME ON A ONEYARD MARINO FLIP TO BLOCKING BACK TONY PAIGE AFTER A 48YARD DRIVE THE NEXT TWO ON PASSES OF NINE AND 30 YARDS WERE TO JACKSON AND CAPPED DRIVES OF 37 AND 43 YARDS RESPECTIVELY WE PICKED BAD PLACES TO GIVE THEM THE BALL OBSERVED BOBBY ROSS THE CHARGERS' 56YEAROLD FIRSTYEAR COACH I HAD ONE OF THOSE DAYS YOU'D LIKE TO FORGET ABOUT FOR THE REST OF YOUR LIFE CONFESSED HUMPHRIES ALLUDING TO THE FACT THAT TWO OF HIS SECONDQUARTER INTERCEPTIONS AND ANOTHER IN THE FINAL QUARTER WERE ON PASSES THROWN DIRECTLY AT MIAMI DEFENDERS THE OTHER CAME ON A PASS THAT WAS TIPPED BY A SAN DIEGO RECEIVER MIAMI HAD OTHERS WHO HELPED MAKE SUNDAY ITS BEST DAY IN MANY PUNTS BY REGGIE ROBY FORCED THE CHARGERS TO BEGIN BALL POSSESSIONS ON THEIR FOUR FIVE AND SIXYARD LINES AMONG OTHER UNPROMISING PLACES BOBBY HUMPHREY MOSTLY A BACKUP AT RUNNING BACK THIS TERM STEPPED FORWARD SMARTLY TO LEAD THE DOLPHIN INFANTRY LINEBACKER DWIGHT HOLLIER A ROOKIE WHO'D LABORED IN COX'S SHADOW LED THE FINS IN TACKLES WITH SIX IN THE TEAM'S SECOND SHUTOUT OF THE SEASON SHULA CALLED THE VICTORY A TOTAL EFFORT AND FOR A CHANGE THE WELLWORN PHRASE SOUNDED APPROPRIATE THE DOLPHINS WILL HOST DIVISIONMATE BUFFALO IN SUNDAY'S AFC FINAL WHILE SAN FRANCISCO AND DALLAS LAST WEEKEND'S NATIONAL CONFERENCE SURVIVORS WILL VIE FOR THE NFC TITLE IN THE CITY BY THE BAY CONVENTIONAL WISDOM HAS IT THAT THE SFDALLAS WINNER WILL SCARF DOWN WHOMEVER THE AFC THROWS UP BUT FIRST THINGS FIRST WE BEAT BUFFALO IN THEIR PARK 3710 ON OCT 4 AND THEY BEAT US IN OURS 2620 ON NOV 16 NOTED THE FINS' COLEMAN AFTER WE MAKE SURE WE'RE THE BEST TEAM IN MIAMI WE'LL WORRY ABOUT THE REST OF THE COUNTRY 9301120095 930112 GE WESTINGHOUSE PICKED TO DEVELOP STANDARDS FOR FUTURE NUCLEAR PLANTS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL IN HOPES OF GIVING THE NUCLEAR POWER INDUSTRY ITS FIRST GLIMMER OF LIGHT IN YEARS A GROUP OF UTILITIES AND THE US DEPARTMENT OF ENERGY SELECTED TWO COMPANIES TO STANDARDIZE THE NEXT GENERATION OF NUCLEAR PLANTS THE CONSORTIUM SAID GENERAL ELECTRIC CO AND WESTINGHOUSE ELECTRIC CORP WERE CHOSEN TO DEVELOP THE FIRSTOFAKIND ENGINEERING AND TECHNICAL FRAMEWORK FOR FUTURE NUCLEAR POWER PLANTS BY STANDARDIZING THE DESIGNS FOR VARIOUS SIZES OF ATOMIC PLANTS THE ENGINEERS HOPE TO SLASH CONSTRUCTION TIME TO ABOUT FIVE YEARS FROM 10 YEARS OR MORE IN THE PAST THE TWO COMPANIES ALSO WILL DEVELOP UNIFORM OPERATING GUIDELINES TO MAKE IT EASIER TO OPERATE THE ATOMIC PLANTS AND TO INCREASE PLANT SAFETY THE GROUP SAID THE EFFORT WILL BE FUNDED WITH 100 MILLION FROM THE ENERGY DEPARTMENT AND 50 MILLION FROM 16 US UTILITIES THE UTILITIES BELONG TO AN INDUSTRY GROUP CALLED ADVANCED REACTOR CORP FORMED TO SUPPORT THE DEVELOPMENT OF STANDARDIZED PLANT DESIGN GE AND WESTINGHOUSE WILL CONTRIBUTE THE EQUIVALENT OF 50 MILLION IN SERVICES EQUIPMENT AND CASH THE UTILITIES HOPE THAT A STANDARDIZED DESIGN WILL HELP THEM BETTER PREDICT CONSTRUCTION COSTS AND THE ECONOMICS OF NUCLEAR POWER PLANTS IN THE PAST CONSTRUCTION COST OVERRUNS AND PUBLIC CONCERN OVER SAFETY AFTER THE THREE MILE ISLAND ACCIDENT IN 1979 HAVE HAMSTRUNG ATOMIC POWER PLANT CONSTRUCTION AND BROUGHT THE NUCLEAR INDUSTRY TO A VIRTUAL STANDSTILL THE LAST ORDER FOR A NUCLEAR PLANT THAT WAS COMPLETED AND WENT INTO OPERATION WAS PLACED IN 1973 ACCORDING TO THE US COUNCIL FOR ENERGY AWARENESS A NUCLEAR POWER INDUSTRY GROUP SINCE THEN ORDERS FOR 111 NUCLEAR PLANTS HAVE BEEN CANCELED ALTHOUGH ABOUT 80 THAT HAD BEEN ORDERED EARLIER WERE COMPLETED IT SAID THE TWO COMPANIES WILL DEVELOP STANDARDS FOR TWO DIFFERENT TYPES OF NUCLEAR POWER PLANTS WESTINGHOUSE WILL WORK ON ITS 600000KILOWATT PRESSURIZED WATER REACTOR AND GE ON ITS ADVANCED BOILING WATER REACTOR WITH 1300000KILOWATT CAPACITY BOTH THESE TECHNOLOGIES ARE USED IN NUCLEAR PLANTS AROUND THE WORLD WHETHER THE NEW MOVE TO DEVELOP A STANDARDIZED ATOMIC PLANT WILL REVIVE THE NUCLEAR POWER INDUSTRY IS UNCERTAIN THERE IS NO MARKET FOR NUCLEAR POWER SAID IC BUPP MANAGING DIRECTOR OF CAMBRIDGE ENERGY RESEARCH ASSOCIATES A CONSULTING FIRM THE REGULATORS REGARD IT TO BE THE WORST OF THE OPTIONS THE LEAST RELIABLE AND THE MOST EXPENSIVE HE SAID 9301120094 930112 MARKETING & MEDIA COCACOLA INTRODUCES MARKETING GIMMICK ITS FAMOUS OLD BOTTLE NEW 20OUNCE PLASTIC VERSION IS TRYING TO BE NOSTALGIC AND HIP AT THE SAME TIME BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA IN THE METOO WORLD OF COLA MARKETING HERE'S SOMETHING PEPSI CAN'T COPY COCACOLA'S FAMOUS AND PATENTED CONTOURED BOTTLE TURNING A DUSTY BASEMENT COLLECTIBLE INTO A MARKETING WEAPON COCACOLA CO SAID IT HAS DEVELOPED A BIGGER PLASTIC VERSION OF THE OLD 65OUNCE CURVY COKE BOTTLE AND PLANS TO DISTRIBUTE IT NATIONALLY PROBABLY LATER THIS YEAR THE NEW 20OUNCE RECYCLABLE BOTTLE WHICH WILL BE USED FOR BOTH COCACOLA CLASSIC AND DIET COKE WILL BE INTRODUCED THIS WEEK IN BIRMINGHAM ALA AND CHATTANOOGA TENN EXCEPT FOR AN OCCASIONAL CHRISTMAS PROMOTION USING GLASS BOTTLES THE HISTORIC COKE BOTTLE HASN'T APPEARED IN LARGE NUMBERS IN GROCERY STORES FOR MORE THAN A QUARTER OF A CENTURY THE NEW BOTTLE WON'T REPLACE THE INDUSTRY STANDARD TWOLITER PLASTIC BOTTLE BUT SHOULD BOOST SALES BUT THE NEW BOTTLE IS THE FRESHEST EXAMPLE OF HOW SOFTDRINK COMPANIES ARE INCREASINGLY USING PACKAGING AND APPEARANCE TO OUTMARKET ONE ANOTHER PEPSICO INC RECENTLY BEGAN SELLING A CLEAR VERSION OF ITS PEPSICOLA CALLED CRYSTAL PEPSI PLAYING UP THE UNUSUAL TRANSPARENT NATURE OF THE BEVERAGE BY PLACING IT IN SEETHROUGH BOTTLES ONE OF THE MAJOR UNEXPLORED AREAS FOR BUILDING BRAND IDENTITY IS THE PHYSICAL PRESENTATION OF PRODUCTS SAID JOHN LISTER CHIEF EXECUTIVE OFFICER OF LISTER BUTLER INC A NEW YORK IDENTITY CONSULTING COMPANY BECAUSE THE OLD COKE BOTTLE HAS BUILTIN NOSTALGIC VALUE FOR OLDER CONSUMERS HE SAID THE TRICK FOR COKE IS TO MAKE SURE IT SEEMS HIP TO YOUNGSTERS THE BIGGEST SOFTDRINK CONSUMERS RIVAL PEPSICO SEES ADVANTAGES FOR ITSELF IN COKE'S LATEST MOVE THE MORE NOSTALGIC COKE GETS THE MORE PEPSI LOOKS PROGRESSIVE FROM AN IMAGE STANDPOINT SAID A PEPSI SPOKESMAN NOTING THAT THAT HELPS PEPSI'S APPEAL TO YOUTHS BUT COKE SAID ITS RESEARCH SHOWS THAT YOUNGER CONSUMERS ALREADY VIEW THE BOTTLE AS MODERN AND DIFFERENT WHILE OLDER PEOPLE ASSOCIATE THE SHAPE WITH THE QUALITY OF THE PRODUCT THE COMPANY HAS BEEN DEVELOPING THE PLASTIC VERSION OF THE BOTTLE FOR SOME TIME HELPED BY RECENT ADVANCES IN PLASTICS TECHNOLOGY COKE WHICH BEGAN USING THE FAMILIARSHAPED BOTTLE NATIONALLY IN 1920 HELPED TO FOSTER A CLOSE ASSOCIATION BETWEEN THE PRODUCT AND THE BOTTLE BY DISPLAYING IT PROMINENTLY OVER THE DECADES IN ADVERTISING AND ON CALENDARS AND OTHER MEMORABILIA THE PACKAGE HAS VARIOUSLY BEEN KNOWN AS THE CONTOUR BOTTLE THE HOBBLE SKIRT BOTTLE AND THE MAE WEST BOTTLE EVEN TODAY YEARS AFTER THE COMPANY PACKAGING HAS BECOME DOMINATED BY CANS AND PLASTIC TWOLITER BOTTLES COKE CONTINUES TO USE THE OLD BOTTLE ICE COLD WITH BEADS OF WATER DRIPPING DOWN IN TV COMMERCIALS SOME COLLECTORS OF COCACOLA MEMORABILIA THINK THE NEW BOTTLE WILL BE A HIT WITH CONSUMERS AT LARGE BUT SOME ARE HEDGING THEIR BETS I GET 10 CALLS A WEEK FROM REGULAR PEOPLE ASKING FOR THE OLD HOBBLESKIRT BOTTLE SAYS LEWIS ROBIN FORMER EDITOR OF A NEWSLETTER FOR THE WORLDWIDE COCACOLA COLLECTORS CLUB MR ROBIN WHO HAS ASSEMBLED NEARLY 400 TYPES OF COKE BOTTLES SAYS HE PLANS TO PICK UP ONE OF THE NEW PLASTIC BOTTLES FOR HIS COLLECTION AND HE IS GOING TO BUY SIX OR SEVEN MORE IN CASE THE NEW BOTTLE BOMBS TO SELL OR TRADE YOU NEVER KNOW WHAT'S GOING TO LAST HE SAID 9301120093 930112 INTERNATIONAL WEATHER CONTINUES TO BATTER TANKER WORSENING THE LEAKAGE OF CRUDE OIL BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL SUMBURGH SCOTLAND SEAS WHIPPED BY HURRICANEFORCE WINDS YESTERDAY BATTERED NEW CRACKS IN THE SUPERTANKER BRAER BEACHED ON THE ROCKS OFF THE SHETLAND ISLANDS RENEWING FEARS THAT MUCH OF THE TANKER'S 25 MILLION GALLONS OF CRUDE OIL WILL BE SPILLED THE SHIP FACED ANOTHER POUNDING EARLY TODAY WITH FORECASTS OF MORE GALES GUSTING TO 80 MILES AN HOUR AT LEAST SEVEN OF THE BRAER'S 12 OILSTORAGE TANKS ARE NOW OPEN TO THE SEA AND THE SHIP APPEARS TO HAVE LOST MORE THAN HALF OF ITS CARGO SAID GEERT KOFFEMAN OF SMITTAK A DUTCH SALVAGE COMPANY OBSERVERS FLYING OVER THE WRECK DURING LULLS IN BLIZZARDLIKE WEATHER YESTERDAY REPORTED PLUMES OF OIL SPURTING 20 FEET IN THE AIR FROM THE TANKER MR KOFFEMAN SAID THE PHENOMENON WAS THE RESULT OF SEA WATER RUSHING INTO NEWLY FORMED FISSURES IN THE TANKER'S BOTTOM FORCING THE LIGHTERTHANWATER CRUDE OIL OUT THROUGH DECK HATCHES BLOWN OPEN UNDER ENORMOUS PRESSURE AS LATE AS SUNDAY ONLY THREE OF THE BRAER'S 12 TANKS HAD BEEN LEAKING AND HALF TO THREEFOURTHS OF THE OIL WAS STILL THOUGHT TO BE ON BOARD THE NEWS SICKENED ENVIRONMENTALISTS WHO HAVE WATCHED THE DEATH TOLL OF SEA BIRDS AND MARINE MAMMALS MOUNT AS THE BRAER'S OIL SPREADS THROUGH THE SHETLANDS' SCENIC ESTUARIES IT'S BECOMING INCREASINGLY CLEAR THAT WE CAN'T REALISTICALLY EXPECT TO CONTROL THE INCIDENT SAID ALISON ROSS OF THE ENVIRONMENTAL GROUP GREENPEACE AS MANY AS 6000 BIRDS ARE DEAD AND THOUSANDS MORE ARE AT RISK ANIMAL RESCUE TEAMS SAY HUNDREDS OF SEALS AND DOZENS OF SEA OTTERS HAVE BEEN OILED AND ARE UNDER STRESS THERE ARE ABOUT 8300 SEALS AND 800 OTTERS THROUGHOUT THE ISLANDS FARMERS TOO ARE DEVASTATED ABOUT 200 SHEEP FARMERS HAVE BEEN FORCED TO MOVE SHEEP TO UNOILED PASTURES IN THE NORTH OF THE ISLANDS AND 11 VEGETABLE FARMERS HAVE SEEN CROPS CONDEMNED AFTER THEY WERE CONTAMINATED BY OILY SPRAY BLOWING FROM THE SEA AN ADDITIONAL 1600 SHEEP FARMERS AND 50 OR SO VEGETABLE GROWERS COULD BE AFFECTED IF THE BRAER SPILL WORSENS THE ISLANDS' SALMON FARMERS ALREADY HAVE EXPERIENCED LOSSES TOTALING 15 MILLION BECAUSE OF A BAN ON HARVESTING FROM 16 FARMS IN THE PATH OF THE OIL BY LATE YESTERDAY THE SPILL HAD ROAMED 30 MILES UP THE SOUTHWESTERN SHETLAND COAST JOHN MACGREGOR BRITAIN'S TRANSPORT SECRETARY SAID THE GOVERNMENT WOULD HOLD A PUBLIC INQUIRY INTO THE DISASTER SPECIFICALLY LOOKING AT WHETHER BRITAIN'S SHIPPING LAWS ARE SUFFICIENT TO PROTECT THE NATION'S COASTLINE FROM TANKER SPILLS FISHING AND ENVIRONMENTAL GROUPS WANT THE GOVERNMENT TO KEEP OILLADEN TANKERS OUT OF ENVIRONMENTALLY SENSITIVE AREAS OR SEVERELY LIMIT THEIR PASSAGE TANKER TRAVEL IN THE CENTRAL SHETLANDS TO AND FROM THE ISLANDS' MAJOR SULLOM VOE NORTH SEA OIL TERMINAL IS ALREADY CONTROLLED TANKERS ARE MONITORED BY RADAR AND MUST BE ESCORTED BY TUGS IN AND OUT OF THE BUSY PORT BUT THE REGULATIONS DON'T EXTEND TO THE SOUTHERN SHETLANDS WHERE THE USOWNED LIBERIANREGISTERED BRAER WENT AGROUND AFTER LOSING POWER IN HEAVY SEAS 9301120092 930112 FINANCING BUSINESS CYBERONICS INC CYBERONICS INC WEBSTER TEXAS SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION RELATING TO AN INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE OFFERING OF THE SHARES TO BE PRICED BETWEEN 11 AND 13 EACH WILL BE MANAGED BY MORGAN STANLEY & CO THE COMPANY WILL HAVE 89 MILLION SHARES OUTSTANDING AFTER THE OFFERING CYBERONICS DESIGNS DEVELOPS AND MARKETS MEDICAL DEVICES FOR THE TREATMENT OF EPILEPSY AND OTHER NEUROLOGICAL DISORDERS 9301120091 930112 PLEA AGREEMENT IN MOZER CASE IS THROWN OUT BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FEDERAL JUDGE THREW OUT THE PLEA AGREEMENT BETWEEN PAUL MOZER AND FEDERAL PROSECUTORS YESTERDAY COMPLAINING THAT THE TWO SIDES HAD FAILED TO AGREE WHETHER THE FORMER HEAD OF GOVERNMENT BOND TRADING AT SALOMON BROTHERS INC COULD FACE ADDITIONAL PROSECUTION FOR ANTITRUST VIOLATIONS AFTER LISTENING TO TWO HOURS OF PUBLIC BICKERING BY PROSECUTORS AND DEFENSE LAWYERS US JUDGE ROBERT P PATTERSON JR REFUSED TO ACCEPT THE AGREEMENT SAYING THAT IMPORTANT ISSUES CONTINUED TO DIVIDE THE TWO SIDES THE PLEA AGREEMENT CALLED FOR MR MOZER TO PLEAD GUILTY TO TWO FELONY COUNTS INVOLVING BIDDING AT A US TREASURY NOTE AUCTION JUDGE PATTERSON URGED THE TWO SIDES TO ATTEMPT TO RESOLVE THE DISPUTE BUT FEDERAL PROSECUTORS THEN TOLD THE JUDGE THAT THEY WOULD NO LONGER NEGOTIATE ON THE PLEA AGREEMENT AND WOULD SEEK A NEW CRIMINAL INDICTMENT AGAINST MR MOZER TYPICALLY AN INDICTMENT INCLUDES BROADER CHARGES THAN THE CRIMINAL INFORMATION THAT ACCOMPANIES A PLEA AGREEMENT FEDERAL GRAND JURIES MEET ON TUESDAYS AND THURSDAYS IN NEW YORK SO THE NEW INDICTMENT COULD BE HANDED UP AS EARLY AS TODAY FEDERAL PROSECUTORS SAID PREVIOUSLY THAT THEY ALREADY HAVE PRESENTED THE ENTIRE CASE CONCERNING MR MOZER TO A GRAND JURY THE GOVERNMENT'S DECISION UNDOES A DEAL THAT BEGAN TAKING SHAPE IN THE FALL OF 1991 WHEN MR MOZER THE CENTRAL FIGURE IN THE TREASURY AUCTION SCANDAL AT THE SALOMON INC UNIT FIRST AGREED TO COOPERATE WITH THE GOVERNMENT HE HAS MET NUMEROUS TIMES WITH FEDERAL PROSECUTORS BOTH IN NEW YORK AND WASHINGTON IN CONNECTION WITH THE INVESTIGATION THAT LED SALOMON TO PAY A CIVIL PENALTY OF 290 MILLION STANLEY S ARKIN MR MOZER'S ATTORNEY CALLED THE GOVERNMENT'S DECISION TO WITHDRAW FROM PLEA NEGOTIATIONS TOTALLY UNFAIR HE TOLD JUDGE PATTERSON THAT HE WOULD SUBMIT EVIDENCE BY TOMORROW SHOWING THAT MR MOZER WAS PROMISED THERE WOULD BE NO ANTITRUST PROSECUTION MY VIEW IS THAT WE HAVE AN ENFORCEABLE AGREEMENT AND WE WILL SEEK TO ENFORCE IT MR ARKIN SAID UNDER THE PLEA AGREEMENT PRESENTED TO JUDGE PATTERSON MR MOZER WOULD HAVE ADMITTED TO TWO COUNTS OF HAVING MADE FALSE STATEMENTS TO US TREASURY OFFICIALS IN CONNECTION WITH THE FEB 21 1991 TREASURY AUCTION MR MOZER IS SAID TO HAVE LIED SO THAT SALOMON'S BIDS COULD EXCEED THE 35 LIMIT ALLOWED IN EACH AUCTION THE PLEA AGREEMENT ONLY DEALT WITH A LIMITED PART OF MR MOZER'S ALLEGED ACTIVITIES IN THE TREASURY AUCTION SCANDAL THE GOVERNMENT'S ANTITRUST CASE WHICH IS BEING PRESENTED BY A DEPARTMENT OF JUSTICE TRIAL ATTORNEY TO A SEPARATE GRAND JURY IN NEW YORK IS SAID TO FOCUS ON TREASURY AUCTIONS IN APRIL AND MAY OF 1991 MR MOZER IS ACCUSED IN A SECURITIES AND EXCHANGE COMMISSION CIVIL LAWSUIT OF FALSIFYING RECORDS IN EIGHT TREASURY AUCTIONS FROM 1989 THROUGH 1991 IN ADDITION THE SEC CASE ACCUSES MR MOZER OF INSIDER TRADING AND MAKING PHONY TRADES TO CREATE TAX LOSSES MR MOZER HAS DENIED THOSE ALLEGATIONS IN RETURN FOR MR MOZER'S GUILTY PLEA IN CONNECTION WITH THE FEBRUARY AUCTION FEDERAL PROSECUTORS WERE TO ASK THE JUDGE TO SENTENCE MR MOZER AT A SPECIFIED LEVEL OF THE FEDERAL SENTENCING GUIDELINES THAT COULD HAVE ALLOWED HIM TO AVOID PRISON TIME THEY ALSO WERE TO TELL THE JUDGE THAT MR MOZER HAD PROVIDED SUBSTANTIAL ASSISTANCE TO FEDERAL PROSECUTORS INVESTIGATING THE SALOMON CASE BUT THE DEAL COLLAPSED AFTER TWO HOURLONG SESSIONS BEFORE JUDGE PATTERSON YESTERDAY DURING WHICH MR ARKIN AND LAURIE S BRECHER AN ASSISTANT US ATTORNEY HANDLING THE CASE CLASHED OVER THE SCOPE OF THE PLEA AGREEMENT THE HEARINGS WHICH WERE MORE LIKE PUBLIC BARGAINING SESSIONS BROKERED BY JUDGE PATTERSON WERE NASTY AT TIMES MR ARKIN QUESTIONED THE CREDIBILITY OF THE FEDERAL PROSECUTORSAT ONE POINT HE LIKENED THE PROSECUTORS TO SERBIANS AND MS BRECHER ACCUSED MR ARKIN OF TRYING TO GET MORE THAN HE BARGAINED FOR THROUGHOUT THE TWO HEARINGS MR MOZER WHO WORE A DARK PINSTRIPED SUIT BUTTONDOWN WHITE SHIRT AND RED TIE SAT QUIETLY BESIDE MR ARKIN THE HEARINGS FINALLY BROKE DOWN WHEN MR ARKIN SAID HE WOULD CALL FORMER AND CURRENT MEMBERS OF THE US ATTORNEY'S OFFICE IN MANHATTAN TO TESTIFY ABOUT PROMISES MADE TO MR MOZER CONCERNING THE ANTITRUST CASE IN RESPONSE MS BRECHER SAID SHE HAD BEEN INSTRUCTED BY US ATTORNEY OTTO OBERMAIER TO WITHDRAW THE PLEA AGREEMENT ANOTHER ISSUE DEBATED BEFORE JUDGE PATTERSON WAS THE SCOPE OF THE CRIMINAL INFORMATION USED TO CHARGE MR MOZER UNDER THE PLEA AGREEMENT MR ARKIN MAINTAINS THAT THE INFORMATION WHICH INCLUDES LANGUAGE ABOUT AN ALLEGED SCHEME TO DEFRAUD CHARGES MR MOZER WITH GREATER CRIMES THAN THOSE TO WHICH HE PLEADED GUILTY JUDGE PATTERSON AGREED SAYING THAT PROSECUTORS HAD UNINTENTIONALLY SANDBAGGED MR ARKIN JUDGE PATTERSON ADDED THAT BY AGREEING TO THE BROADER CHARGES IN THE INFORMATION MR MOZER GHT HURT HIMSELF IN PENDING CIVIL LITIGATION AGAINST HIM WHICH THE JUDGE IS ALSO OVERSEEING AS THE JUDGE OVERSEEING THE CASE JUDGE PATTERSON CAN'T ACCEPT A GUILTY PLEA UNLESS HE IS CONVINCED THAT THE DEFENDANT FULLY UNDERSTANDS THE TERMS OF HIS PLEA BARGAIN 9301120090 930112 REP GRADISON TO HEAD HEALTH INSURANCE GROUP WASHINGTON REP BILL GRADISON SAID HE WILL RESIGN FROM CONGRESS TO BECOME PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA FIRST ELECTED TO THE HOUSE IN 1974 THE OHIO REPUBLICAN LOST HIS GOP LEADERSHIP POST TO A CONSERVATIVE CHALLENGER LAST MONTH AND HIS DEPARTURE REMOVES A LEADING VOICE FOR PARTY MODERATES THE 64YEAROLD FORMER CINCINNATI MAYOR WAS THE RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE IN THE LAST CONGRESS BUT HIS TRUE POWER BASE HAS LONG BEEN THE WAYS AND MEANS COMMITTEE WHERE HE RANKS THIRD AND HAS BEEN THE SENIOR REPUBLICAN ON THE HEALTH SUBCOMMITTEE IN ANTICIPATION OF HIS RESIGNATION HE SURRENDERED THAT POST LAST WEEK TO REP BILL THOMAS R CALIF WHO IS EXPECTED TO BRING A MORE CONSERVATIVE PARTISAN FLAVOR IN A STATEMENT YESTERDAY MR GRADISON SAID HE WAS LEAVING CONGRESS TO JOIN THE INDUSTRY GROUP LARGELY TO TRY MY HAND AT SOMETHING NEW REP GRADISON HAS ADVOCATED KEEPING THE HEALTH SYSTEM LARGELY PRIVATE A POSITION THE HEALTH INSURANCE ASSOCIATION WHICH REPRESENTS COMMERCIAL INSURERS STAUNCHLY ADVOCATES A YEAR AGO HE LEAD A GROUP OF REPUBLICANS WHO PERSUADED THE BUSH ADMINISTRATION TO DROP A PLAN TO TAX SOME OF THE EMPLOYERPROVIDED HEALTH BENEFITS OF HIGHLY PAID WORKERS IN A SURPRISING POLICY REVERSAL HOWEVER THE GROUP'S BOARD OF DIRECTORS RECENTLY CAME OUT IN FAVOR OF SUCH A MEASURE 9301120089 930112 TECHNOLOGY PRODIGY TO DISMISS 250 OF ITS 1100 EMPLOYEES WHITE PLAINS NY PRODIGY SERVICES CO SAID IT WILL DISMISS 250 OF ITS 1100 EMPLOYEES AS PART OF A SWEEPING OVERHAUL OF THE UNPROFITABLE HOMECOMPUTER NETWORK CONCERN IN ANNOUNCING DETAILS OF THE REORGANIZATION FIRST REPORTED LAST WEEK PRODIGY SAID IT WILL LOSE AN ADDITIONAL 65 EMPLOYEES BY HIRING AN OUTSIDE COMPANY TO HANDLE ITS CUSTOMER SERVICE PRODIGY SAID THE COMPANY SEARS ROEBUCK & CO'S SPS PAYMENT SERVICES INC UNIT WILL OFFER JOBS TO ALL 65 EMPLOYEES AND PRODIGY WILL PAY FOR THEIR RELOCATION A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS PRODIGY HAS SEEN FAST GROWTH IN ITS CONSUMER SERVICE OFFERING SHOPPING GAMES STOCK TRADING AND BULLETIN BOARDS TO SOME ONE MILLION SUBSCRIBING HOUSEHOLDS BUT AFTER INVESTING AN ESTIMATED 800 MILLION IT ISN'T YET SHOWING A PROFIT PRODIGY SAID IT WILL REALIGN THE COMPANY INTO NEW LINES OF BUSINESS AIMED AT AREAS INCLUDING FINANCE AND TRAVEL EDUCATION AND ENTERTAINMENT AND COMMUNICATIONS IT SAID IT PLANS TO BRING IN AN EXECUTIVE VICE PRESIDENT FROM OUTSIDE THE COMPANY TO OVERSEE ITS CONSUMER SERVICE THE CHANGES AT PRODIGY HAVE ALREADY LED TO SEVERAL HIGHLEVEL DEPARTURES INCLUDING HENRY HEILBRUNN SENIOR VICE PRESIDENT 9301120088 930112 CORRECTIONS & AMPLIFICATIONS ESKIMO PIE CORP WAS A SUBSIDIARY OF REYNOLDS METALS CO WHICH SOLD ITS INTEREST IN THE ICE CREAM PRODUCTS MAKER LAST YEAR IN YESTERDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT ESKIMO PIE STILL WAS A REYNOLDS SUBSIDIARY 9301120087 930112 TECHNOLOGY AT&T SUES MCI SAYING COMPETITOR VIOLATED PATENTS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SUED MCI COMMUNICATIONS CORP CHARGING MCI WITH INFRINGING ON 10 AT&T PATENTS THE SUIT WAS A REACTION TO AN MCI MOVE TO HAVE SOME OF AT&T'S PATENTS DECLARED INVALID THE AT&T SUIT FILED IN FEDERAL COURT IN WASHINGTON DC DISCLOSED SOME SEEMINGLY PROSAIC PATENTS TELEPHONE USERS WHO HEAR THE BONG THAT ALERTS THEM TO TAP OUT THEIR CREDIT CARD NUMBERS MIGHT BE SURPRISED TO FIND OUT THAT IT'S COVERED BY AN AT&T PATENT SO IS THE MESSAGE THAT IDENTIFIES THE CARRIER BEFORE THE CALL IS PUT THROUGH AS WELL AS THE TECHNIQUE FOR HOLDING TOLLFREE CALLERS IN QUEUE UNTIL A SERVICE PERSON TAKES THEIR CALL AT&T ATTORNEY JUDITH MAYNES SAID THE COMPANY HAD NO CHOICE BUT TO KEEP MCI FROM GETTING A FREE RIDE ON OUR 3 BILLION ANNUAL RESEARCH AND DEVELOPMENT INVESTMENT AT&T HAS SAID IT PREFERRED AN AMICABLE AGREEMENT ON PATENT ROYALTIES WITH WASHINGTONBASED MCI AND HAD BEEN WORKING TOWARD ONE SINCE 1988 TO NO AVAIL THE PATENT DISPUTE AFFECTS SOFTWARE AND TECHNOLOGY THAT MCI IS TRYING TO LICENSE TO FOREIGN CARRIERS IN ITS BATTLE WITH AT&T FOR A MORETHAN6 BILLION ANNUAL OVERSEAS MARKET AT&T WANTS TO PROTECT ITS DESIGNS AND SERVICE RELATIONSHIPS WITH FOREIGN CARRIERS SOME OF WHICH DATE FROM THE TURN OF THE CENTURY MCI'S DECISION IN SEPTEMBER TO LICENSE ITS NETWORK SOFTWARE TO THE CANADIAN NATIONAL LONGDISTANCE CONSORTIUM STENTOR SPARKED THE INCREASINGLY CONTENTIOUS LEGAL AND MARKETING FEUD WITH AT&T AT&T WARNED THAT THE PACT VIOLATED ITS PATENTS AND MCI SUED TO HAVE THEM DECLARED INVALID LAST WEEK AT&T SAID IT WOULD PURCHASE A STAKE IN UNITEL COMMUNICATIONS INC THE NO 2 NETWORK IN CANADA AND STENTOR'S BIGGEST COMPETITOR AT&T IS SEEKING UNSPECIFIED DAMAGES FOR MCI'S ALLEGEDLY UNAUTHORIZED PAST USE AND FOR FUTURE USE OF EIGHT OF THE 10 PATENTS AND AT&T ASKED THE COURT TO INCREASE THE DAMAGES ABOVE THE 2 ROYALTY RATE AT&T PREVIOUSLY OFFERED MCI TO COVER MCI'S ALLEGED WILLFUL INFRINGEMENT DATING TO 1987 ON SOME PATENTS CLAIMS AND COUNTERCLAIMS ARE A NORMAL PART OF ANY LITIGATION SAID GARY M PARSONS MCI'S SENIOR VICE PRESIDENT FOR CORPORATE AND PUBLIC POLICY ADDING THAT MCI WAS CONFIDENT THAT ITS POSITION WILL BE UPHELD BY THE COURT AT&T ALSO SOUGHT AN INJUNCTION TO PREVENT MCI FROM USING TWO PATENTS COVERING THE QUEUING AND ROUTING OF 800 CALLS AMONG MULTIPLE LOCATIONS AND THE CONTROL OF TOLLFRAUD ABUSE IN ADDITION AT&T FILED A RESPONSE TO AN MCI MOTION CURRENTLY BEFORE JUDGE HAROLD GREENE IN THE US DISTRICT COURT IN WASHINGTON REAFFIRMING ITS RIGHT TO ENFORCE ITS PATENTS 9301120086 930112 AMERICAN BIOMED WARRANTS THE WOODLANDS TEXAS AMERICAN BIOMED INC SAID IT PLANS TO REDEEM ALL ITS COMMON STOCK PURCHASE WARRANTS OUTSTANDING FEB 5 FOR 10 CENTS A WARRANT IF ALL OF THE 800000 WARRANTS OUTSTANDING ARE EXERCISED BEFORE THEN IT WOULD RAISE 2 MILLION IN CAPITAL FOR THE COMPANY EACH TWO WARRANTS REPRESENT THE RIGHT TO PURCHASE ONE SHARE OF AMERICAN BIOMED COMMON STOCK AT 5 A SHARE THE COMPANY ALSO SAID A 35 MILLION PRIVATE PLACEMENT ARRANGED BY PIERSON HELDRING & PIERSON INVESTMENT FINANCE INC IS SUBSTANTIALLY COMPLETE AND SHOULD BE FULLY FUNDED IN THE NEXT SEVERAL WEEKS AMERICAN BIOMED WANTS CAPITAL TO DEVELOP MARKETS FOR THE COMPANY'S PRODUCTS AMERICAN BIOMED ALSO RETAINED ADVEST INC TO GIVE IT ADVICE REGARDING FUTURE CAPITAL NEEDS AND POTENTIAL ACQUISITION OPPORTUNITIES AMERICAN BIOMED DEVELOPS AND MARKETS MINIMALLY INVASIVE SURGICAL DEVICES 9301120085 930112 NORDSTROM SETS BACKPAY PACT WITH UNION BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL NORDSTROM INC AGREED TO SETTLE A CLASSACTION LAWSUIT OVER BACK PAY THAT HAD RAISED QUESTIONS ABOUT WHETHER THE RETAILER'S REPUTATION FOR CUSTOMER SERVICE CAME AT THE EXPENSE OF EMPLOYEES IN AN AGREEMENT REACHED WITH THE UNION THAT FORMERLY REPRESENTED SOME OF ITS WASHINGTON STATE EMPLOYEES NORDSTROM SAID IT WILL PAY A SPECIFIED PERCENTAGE OF COMPENSATION TO EMPLOYEES WHO WORKED FOR IT BETWEEN 1987 AND 1990 THE SEATTLE COMPANY SAID THE PAYMENTS AREN'T LIKELY TO EXCEED THE 15 MILLION PREVIOUSLY SET ASIDE TO SETTLE THE CLAIMS BUT NORDSTROM ADDED THAT IT WILL INCUR ABOUT 75 MILLION IN NEW COSTS TO PAY FOR THE PLAINTIFF'S ATTORNEY'S FEES AND TO ADMINISTER THE BACK PAYMENTS THE AGREEMENT COMES JUST WEEKS BEFORE THE RETAILER AND THE UNITED FOOD & COMMERCIAL WORKERS INTERNATIONAL UNION WERE SCHEDULED TO TRY THE ISSUE IN STATE COURT IN SEATTLE SETTLEMENT OF THE SUIT ORIGINALLY FILED IN FEBRUARY 1990 STILL FACES FINAL CLEARANCE BY THE COURT UNION OFFICIALS SHARPLY DISAGREED WITH NORDSTROM'S BACKPAY ESTIMATES ACCORDING TO OFFICIALS OF LOCAL 1001 OF THE UNION WHICH BROUGHT THE SUIT NORDSTROM'S BACKPAY COSTS COULD REACH 30 MILLION BUT NORDSTROM OFFICIALS CALLED THAT ESTIMATE MISLEADING AND IRRESPONSIBLE THE DISAGREEMENT BETWEEN NORDSTROM AND THE UNION OVER BACK PAY HAD BECOME THE FOCAL POINT OF THEIR CONTENTIOUS RELATIONSHIP IN THE LATE 1980S THE UNION THEN SEEKING TO ORGANIZE MORE NORDSTROM STORES ALLEGED THAT NORDSTROM GAINED ITS REPUTATION FOR CUSTOMER SERVICE BY ENCOURAGING ITS SALES FORCE TO PERFORM LARGE SEGMENTS OF THEIR WORK OFF THE CLOCK NORDSTROM ENCOURAGED EMPLOYEES TO PERFORM SUCH TASKS AS WRITING THANKYOU NOTES TO CUSTOMERS AND RESTOCKING STORE SHELVES BEFORE OR AFTER THEIR SCHEDULED WORK PERIOD NORDSTROM DENIES THAT IT EVER ENCOURAGED SUCH PRACTICES THE COMPANY PREVAILED AGAINST THE UNION AS ITS WORKERS DECERTIFIED THE UNION AT FIVE SEATTLE AREA STORES AND THE UNION VOLUNTARILY WITHDREW CERTIFICATION IN THE ONLY OTHER STORE WHOSE EMPLOYEES IT REPRESENTED WE'RE VERY PLEASED THAT THIS SETTLEMENT IF APPROVED WILL PUT THIS MATTER BEHIND US SAID RAY JOHNSON NORDSTROM COPRESIDENT THE COMPANY AGREED TO THE SETTLEMENT HE ADDED IN PART TO AVOID THE COSTS OF FURTHER LITIGATION THE COSTS FOR THE PLAINTIFF'S ATTORNEYS AND TO ADMINISTER BACK PAY WON'T HAVE A MATERIAL IMPACT ON THE COMPANY A NORDSTROM SPOKESWOMAN SAID THE COMPANY ESTIMATED THAT ABOUT HALF OF THE 170000 SALES REPRESENTATIVES WHO WORKED IN ITS STORES BETWEEN 1987 AND 1990 WOULD BE ELIGIBLE FOR BACK PAY NORDSTROM WILL PAY ELIGIBLE EMPLOYEES AN AMOUNT EQUAL TO 3 OF THEIR TOTAL COMPENSATION DURING THAT PERIOD IF THEY OPERATED ON COMMISSION AND 15 IF THEY WERE HOURLY EMPLOYEES THE AGREEMENT WAS ANNOUNCED AFTER STOCK TRADING STOPPED FOR THE DAY IN NEW YORK NORDSTROM STOCK ROSE 25 CENTS TO CLOSE AT 3925 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9301120084 930112 MARKETING & MEDIA VIACOM WILL EXPAND NICKELODEON TO UK BEGINNING THIS FALL NEW YORK VIACOM INC'S NICKELODEON NETWORK WILL MAKE ITS OVERSEAS DEBUT THIS FALL STARTING UP A UNITED KINGDOM VERSION OF THE CHILDREN'S CHANNEL IN A JOINT VENTURE WITH BRITISH SKY BROADCASTING LTD THE DEAL IS THE FIRST OF SEVERAL THAT VIACOM PLANS WITH FOREIGN PARTNERS IN AN AGGRESSIVE BID TO ROLL OUT NICKELODEON BEYOND US BORDERS AND INTO THE HOMES OF OVERSEAS TOTS RIPE FOR KIDDIE HITS SUCH AS REN & STIMPY THE VENTURE FOLLOWS A TRAIL ALREADY BLAZED BY SISTER SERVICE MTV WHICH NOW REACHES 200 MILLION SUBSCRIBERS IN 70 COUNTRIES THROUGH VARIOUS FORMATS AND PARTNERSHIPS OUR STRATEGY IS THIS WE'RE LOOKING FOR FRENCH PARTNER AN ITALIAN PARTNER AND A GERMAN PARTNER SAID TOM FRESTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MTV NETWORKS INC WHICH COMPRISES MTV NICKELODEON AND VH1 WE THINK THE TIME IS RIGHT NOW IT'S GOING TO BE A VERY STRONG BUSINESS IN THE LONG TERM FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED AS THE US CABLE MARKET MATURES AND NEARS SATURATION THE INDUSTRY IS SETTING ITS SIGHTS OVERSEAS FOR FUTURE GROWTH EVEN THE COUNTRY MUSIC TELEVISION CABLE NETWORK IS STARTING A EUROPEAN CABLE NETWORK VIACOM AND BRITISH SKY BROADCASTING WHICH IS 50OWNED BY NEWS CORP PREDICT THAT BY THE END OF THE YEAR NICKELODEON WILL OFFER 12 HOURS A DAY OF CHILDREN'S PROGRAMMING TO 31 MILLION HOMES IN THE UK BY DIRECTBROADCAST SATELLITE AND ABOUT 500000 CABLE HOMES CURRENTLY IN THE UK CABLE TELEVISION REACHES ABOUT 380000 HOUSEHOLDS WHILE DIRECTBROADCAST SATELLITE CLAIMS ABOUT 28 MILLION SUBSCRIBERS BUT NICKELODEON MAY HAVE A HARDER TIME EXPANDING THAN MTV LARGELY BECAUSE OF MYRIAD LANGUAGE AND CULTURAL DIFFERENCES IT MUST NAVIGATE WHILE AMERICAN MUSIC VIDEOS CLEAR THE LANGUAGE BARRIER NICKELODEON WILL HAVE TO PAIR UP WITH FOREIGNLANGUAGE PARTNERS TO GET ACROSS SAY THE MORAL QUANDARIES OF A 10YEAROLD ON A TYPICAL NICKELODEON PROGRAM NONETHELESS THE NEW VENTURE OPENS THE DOOR FOR INTERNATIONAL EXCHANGE OF PROGRAMMING JOINT PROGRAMMING PROJECTS OVERSEAS AND MORE IMPORTANTLY A NEW SOURCE OF REVENUE FOR THE MATURE DOMESTIC NETWORK WE DON'T SEE THIS AS A ONEWAY PIPELINE INTO OTHER COUNTRIES SAID NICKELODEON PRESIDENT GERRY LAYBOURNE WE SEE THIS MORE AS A WAY TO EXCHANGE PROGRAMMING AND ENCOURAGE A MULTICULTURAL VIEW BACK IN THE UNITED STATES 9301120083 930112 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON EVERY SCENE OF THIS ENCHANTED FABLE IS DENSE WITH MARVELOUS DETAIL IT'S THE STORY OF A TOUGH JEWISH LADY NAMED PEARL WHO FINDS MIDDLEAGED ROMANCE WITH A CHARMING ITALIAN PLAYED BY MR MASTROIANNI THIS WHIMSICAL TALE IS FIRMLY GROUNDED IN THE REALITY OF ORDINARY LIFE IN NEW YORK'S OUTER BOROUGH OF QUEENS IN 1969 THE YEAR THE METS WON THE PENNANT AND A MAN WALKED ON THE MOON THIS IS THE MORALLY EARNEST PERSON'S VERSION OF A GOOD ACTION PICTURE THOUGH NOT TERRIBLY INTERESTING AS POLITICAL PHILOSOPHY IT MAKES FOR A PASSABLY ENTERTAINING PICTURE THE QUIPS ARE PEPPY AND WELLPACED AND THE STARS ARE PERSONABLE THOUGH SOME PEOPLE MAY HAVE TIRED OF MR CRUISE'S ONGOING PERFORMANCE AS THE SMART FRAT BOY FORCED BY SOME SERIOUS SITUATION TO BECOME A MAN A SURPRISINGLY SOBER ACCOUNT OF THE 1960S LEADER WHO BEFORE HE WAS MURDERED IN 1965 AT THE AGE OF 39 HAD LIVED MANY LIVES HONOR STUDENT STREET HUSTLER RACIST SEPARATIST HUMANRIGHTS ADVOCATE IT'S AN INTELLIGENT INSTRUCTIVE ALMOST DUTIFULLY SO PORTRAIT OF A FASCINATING CHARISMATIC MAN AND HIS MORAL AWAKENING AND REAWAKENING YOU WILL EMERGE ENLIGHTENED AND WANTING TO KNOW MORE WITH OPERATIC PASSION AND CINEMATIC BEAUTY INDOCHINE COMBINES LOVE AND WAR TO TELL ITS STORY OF FOLLY FURY AND SUFFERING IN THE WANING DAYS OF FRENCH COLONIAL DOMINION IN SOUTHEAST ASIA IT ISN'T A SUBTLE PICTURE BUT IT IS ALWAYS ABSORBING UNABASHEDLY HITTING BIG EMOTIONAL CHORDS WITH ITS POINTCOUNTERPOINT OF IMPASSIONED POLITICAL EVENTS AND DOOMED LOVE WITH DOOMED LOVE ALMOST ALWAYS TAKING CENTER STAGE THE CRYING GAME IS A ROMANTIC MYSTERY THAT ISN'T A MYSTERY OR A ROMANCE IN ANY CONVENTIONAL SENSE DIRECTOR JORDAN IS A FABULIST WHO SEES NEW POSSIBILITIES IN THE FAMILIAR INDEED NOTHING IS FAMILIAR IN HIS HANDS THE MOVIE PERSISTENTLY UPENDS EXPECTATIONS WITHOUT INSULT AS IT PULLS YOU INTO A NETHERWORLD FILLED WITH YEARNING WHIMSY AND DANGER MORE OR LESS A MODEST BRITISH VERSION OF THE BIG CHILL HERE THE COLLEGE CHUMS WHO REUNITE A DECADE LATER TO MOURN THE PASSING OF YOUTH INCLUDE A BRITISH DIRECTOR WHO HAS GONE HOLLYWOOD HIS AMERICAN ACTRESS WIFE PLUS SOME ADVERTISING JINGLE WRITERS AND OTHER FIXTURES OF SHOW BIZ'S RAGGED EDGE DESPITE THE OBVIOUS CONTRIVANCE OF THE PICTURE'S STRUCTURE THIS IS A PLEASURABLE PIECE OF WORK WITH FIRSTRATE PERFORMANCES ALL AROUND 9301120082 930112 REP ROSTENKOWSKI ACCUSES PROSECUTOR ON NEWS LEAKS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP DAN ROSTENKOWSKI'S ATTORNEYS FILED A COMPLAINT IN FEDERAL COURT HERE ALLEGING THE US ATTORNEY'S OFFICE HAS IMPROPERLY CONTRIBUTED TO NEWS LEAKS REGARDING ITS INVESTIGATION OF THE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DETAILS OF THE COMPLAINT AND ACCOMPANYING DOCUMENTS REMAIN UNCLEAR BECAUSE THEY WERE ORDERED SEALED BY JUDGE JOHN PENN BUT THE DECISION BY MR ROSTENKOWSKI'S DEFENSE TO GO TO COURT REFLECTS THE INCREASED TENSION BETWEEN THE CHICAGO DEMOCRAT AND US ATTORNEY JAY STEPHENS WHOSE OFFICE IS CONDUCTING A HIGHPROFILE GRAND JURY INQUIRY OF THE HOUSE POST OFFICE THE INVESTIGATION BEGAN LAST YEAR WITH ALLEGATIONS OF EMBEZZLEMENT AND DRUG DEALING AMONG LOWLEVEL HOUSE POST OFFICE EMPLOYEES INVESTIGATORS HOWEVER HAVE BEEN MOST INTERESTED IN ALLEGATIONS THAT STAMP TRANSACTIONS WERE USED TO LAUNDER FUNDS FOR LAWMAKERS AND MR ROSTENKOWSKI WHOSE OFFICE AND CAMPAIGN MADE SIGNIFICANT STAMP PURCHASES IN THE PERIOD UNDER REVIEW HAS BEEN THE FOCUS OF SUBPOENAS SEEKING TESTIMONY FROM HIS AIDES AND DOCUMENTS RELATED TO HIS POLITICAL AND PERSONAL FINANCES INVOKING THE FIFTH AMENDMENT MR ROSTENKOWSKI HAS REFUSED TO TESTIFY AND HE COMPLAINS OF BEING TRIED IN THE PRESS BY A POLITICALLY AMBITIOUS PROSECUTOR WHO IS ON A FISHING EXPEDITION IN FACT DETAILS RELATED TO THE PROCEEDINGS HAVE APPEARED FREQUENTLY IN NEWS STORIES AND IN THE AFTERMATH OF NOVEMBER'S ELECTION THESE ACCOUNTS HAVE ELEVATED ATTENTION ON THE CASE EVEN AS THE INCOMING CLINTON ADMINISTRATION PREPARES TO TAKE OVER THE JUSTICE DEPARTMENT JUDGE PENN'S DECISION TO PUT YESTERDAY'S MOTION UNDER SEAL CLEARLY DISAPPOINTED THE ROSTENKOWSKI CAMP WHICH HAS FELT COMPELLED TO TAKE A MORE AGGRESSIVE STANCE IN RESPONSE TO THE PUBLICITY SURROUNDING THE CASE STANLEY BRAND MR ROSTENKOWSKI'S COUNSEL REFUSED TO COMMENT BUT THE COMPLAINT IS BELIEVED TO ALLEGE VIOLATIONS OF RULES OF CRIMINAL PROCEDURE FORBIDDING DISCLOSURE OF GRAND JURY PROCEEDINGS MR STEPHENS'S OFFICE DECLINED TO COMMENT ON WHETHER IT HAD BEEN THE SOURCE OF NEWS STORIES IN A STATEMENT REGARDING THE HOUSE POST OFFICE INQUIRY HOWEVER SPOKESMAN KEVIN OHLSON ASSERTED WE WILL FOLLOW THE EVIDENCE WHEREVER IT LEADS WITHOUT REGARD TO THE STATUS OF INDIVIDUALS ALLEGEDLY INVOLVED AND EFFORTS TO UNDERMINE THE INVESTIGATION 9301120081 930112 LAW LEGAL BEAT NEGLECT CHARGES AGAINST PARENTS RAISE QUESTIONS BY STEPHEN J ADLER AND JUNDA WOO STAFF REPORTERS OF THE WALL STREET JOURNAL WILL THE POLICE SHOW UP WITH HANDCUFFS IF YOU LEAVE YOUR 12YEAROLD HOME ALONE FOR A WEEK HOW ABOUT FOR A NIGHT WHAT ABOUT FOR AN HOUR WHAT IF YOUR 16YEAROLD IS LOOKING AFTER HIM WHAT IF YOU ASK A NEIGHBOR TO CHECK IN WHAT IF YOU DON'T SUCH QUESTIONS ARE ON MANY PARENTS' MINDS IN THE WAKE OF REPORTS ABOUT THE CHICAGOAREA PARENTS WHO WERE ARRESTED FOR LEAVING A NINEYEAROLD AND A FOURYEAROLD HOME WHILE THEY VACATIONED IN MEXICO AND THE MORE RECENT CASE OF A HORNELL NY WOMAN CHARGED WITH LEAVING A 13YEAROLD AND A 15YEAROLD BEHIND THE LINE WHERE ENCOURAGING A CHILD'S INDEPENDENCE LEAVES OFF AND NEGLECT BEGINS CAN BE VIEWED AS A MATTER OF CHILDCARE PHILOSOPHY AS A REFLECTION ON THE ECONOMY AS GRIST FOR SOCIAL HISTORY THE QUESTION OF WHEN THE HANDCUFFS COME OUT THOUGH IS ONE OF LAW YET THE THE LAW PROVIDES LITTLE GUIDANCE TO PARENTS AS TO WHAT IS NOT ALLOWED IN NEW YORK STATE IT'S ILLEGAL TO KNOWINGLY ACT IN A MANNER LIKELY TO BE INJURIOUS TO THE PHYSICAL MENTAL OR MORAL WELFARE OF A CHILD UNDER 18 MOST STATES HAVE ENACTED SIMILAR STATUTES WITHIN THE PAST TWO DECADES THE PENALTY PROVIDED FOR VIOLATING THE LAW IS AS MUCH AS ONE YEAR IN JAIL GUIDANCE AS TO HOW LONG ONE MAY LEAVE A CHILD OF ANY PARTICULAR AGE AT HOME ALONE IS NOT GIVEN SIMILARLY CIVIL LAWS IN EVERY STATE PERMIT JUDGES TO REMOVE NEGLECTED CHILDREN FROM THE HOME AND PLACE THEM IN FOSTER CARE NEGLECT IS GENERALLY DEFINED BROADLY AS A FAILURE TO PROVIDE THE CHILD WITH BASIC NECESSITIES OR WITH PROPER SUPERVISION AGAIN NO AGE GUIDELINES ARE PROVIDED FOR WHEN CHILDREN CAN BE LEFT ALONE PROSECUTORS SAY SUCH VAGUENESS IN THE LAW IS UNAVOIDABLE BECAUSE EVERY CASE IS DIFFERENT AND ALL THE CIRCUMSTANCES MUST BE CONSIDERED TOGETHER BEFORE OFFICIALS CAN DECIDE WHETHER NEGLECT HAS OCCURRED THE MAIN GOAL THEY SAY IS TO GIVE CHILDPROTECTION OFFICIALS THE TOOLS TO INTERCEDE WHEN A CHILD IS CLEARLY IN DANGER THE OFFICIALS ARE LEFT WITH WIDE DISCRETION WE DON'T ROAM THE STREETS LOOKING FOR NEGLECTED CHILDREN SAYS BARRY ENSMINGER GENERAL COUNSEL TO THE NEW YORK CITY HUMAN RESOURCES ADMININSTRATION WE RESPOND TO REPORTS WHERE PEOPLE BELIEVE THERE'S A SITUATION WHERE A CHILD MIGHT BE IN DANGER THROUGH ABUSE OR NEGLECT WHETHER TO PROCEED WITH LEGAL EFFORTS TO REMOVE THE CHILD FROM THE HOME HE SAYS IS A VERY FACTBASED JUDGMENT CASEWORKERS INVESTIGATING THE ALLEGATIONS OBSERVE THE CONDITION OF THE HOME AND INTERVIEW THE PARENTS THE CHILD AND ANYONE ELSE WITH INFORMATION OFTEN A TEACHER OR A DOCTOR WHETHER THE PARTICULAR BEHAVIOR CONSTITUTES NEGLECT MR ENSMINGER SAYS WOULD DEPEND ON HOW OLD THE CHILD IS WHAT THE RISK FACTORS ARE WHAT THE PARENTS' EXCUSE WAS GOING TO AN EMERGENCY ROOM BECAUSE YOUR HUSBAND HAD A HEART ATTACK AND THEN RETURNING RIGHT HOME IS OBVIOUSLY A DIFFERENT SITUATION THAN A TRIP TO MEXICO PARENTS OF LATCHKEY CHILDREN WHO ARE TAUGHT TO FEND FOR THEMSELVES AFTER SCHOOL UNTIL THE PARENTS GET HOME FROM WORK ORDINARILY WOULDN'T BE SUBJECT TO ANY CHARGES HE SAYS SIMILARLY SPECIALISTS IN THE AREA AGREE THE GOVERNMENT PROBABLY WOULDN'T INTERFERE WITH PARENTS WHO LEFT TEENAGERS ALONE FOR A FEW DAYS PARTICULARLY IF THE CHILDREN WERE PROVIDED EMERGENCY PHONE NUMBERS AND IF THE NEIGHBORS CHECKED IN PERIODICALLY BUT PARENTS WHO LEFT A SIXMONTHOLD BABY ALONE IN A CAR OR A HOME FOR EVEN A FEW MINUTES VERY LIKELY WOULD FACE CHARGES IT COMES BACK TO WHAT'S COMMON SENSE SAYS HOWARD A DAVIDSON DIRECTOR OF THE AMERICAN BAR ASSOCIATION'S CENTER ON CHILDREN AND THE LAW IN WASHINGTON THERE'S NO HARDANDFAST RULE SOME LAWYERS CONTEND THE CIVIL AND CRIMINAL CHILDNEGLECT LAWS ARE SO VAGUE THEY FAIL TO MEET CONSTITUTIONAL REQUIREMENTS OF FAIRNESS AND ARE SUBJECT TO ARBITRARY AND DISCRIMINATORY USE WHEN A LAW THIS BROAD IS ENFORCED NO ONE'S QUITE SURE WHETHER THE BEHAVIOR VIOLATES THE LAW SAYS PROF MARTIN GUGGENHEIM A CHILDREN'S RIGHTS SPECIALIST AT NEW YORK UNIVERSITY'S LAW SCHOOL IN ONE COMMUNITY THEY'RE GOING TO SAY WE DON'T WANT CHILDREN IN THIS COMMUNITY LEFT ALONE WHEN THEY'RE UNDER 15 AND IN ANOTHER COMMUNITY THAT'S A JOKE MR GUGGENHEIM WHO HAS DEFENDED PARENTS IN NEGLECT CASES SAYS PROSECUTIONS USUALLY OCCUR WHEN A CHILD IS INJURED OFTEN IN A FIRE OTHERWISE OUTSIDERS SELDOM KNOW THE NEGLECT HAS OCCURRED IN THE ILLINOIS CASE NEIGHBORS LEARNED THAT THE TWO CHILDREN OF DAVID AND SHARON SCHOO WERE ALONE FOR THE CHRISTMAS HOLIDAYS WHEN A HOME FIRE ALARM WENT OFF AND THE CHILDREN FLED TO A HOUSE ACROSS THE STREET SOMETIMES A PARENT PARTICULARLY ONE FROM A LOWINCOME FAMILY WITHOUT CHILDCARE HELP MAY HAVE HAD LITTLE CHOICE BUT TO LEAVE THE CHILD MR GUGGENHEIM SAYS FOR INSTANCE A SINGLE PARENT MAY DECIDE TO RUN OUT TO GET MEDICINE FOR THE CHILD IN A LOCAL PHARMACY RATHER THAN TAKE THE SICK CHILD OUT IN THE COLD BUT THEN THE CHILDREN GET HURT MR GUGGENHEIM SAYS AND THE PARENTS LOSE THEIR KIDS TO FOSTER CARE AND ARE BLAMED TERRIBLY IT'S A TRAGEDY CHILDWELFARE SPECIALISTS SAY THE SCHOO CASE INVOLVING YOUNG CHILDREN WHO WEREN'T VISITED BY NEIGHBORS AND WERE ALLEGEDLY GIVEN NO PHONE NUMBERS TO CALL IN AN EMERGENCY IS AN UNSURPRISING APPLICATION OF CURRENT CHILDENDANGERMENT LAWS BUT ADDITIONAL FELONY COUNTS OF ABANDONMENT AND CRUELTY TO CHILDREN IN THAT CASE RUNNING THE POTENTIAL PENALTY UP TO 14 YEARS IN PRISON MAY RECEIVE SCRUTINY IN THE COURTS ABANDONMENT GENERALLY IMPLIES THE PARENTS' INTENT NOT TO RETURN CRUELTY IS DEFINED AS EXPOSING A CHILD TO INJURY IN HEALTH OR LIMB THE HORNELL NY CASE SEEMS CLOSER TO THE LINE BETWEEN MERE PERMISSIVENESS AND NEGLECT ON NEW YEAR'S DAY NEIGHBORS HEARD LOUD MUSIC AND NOTICED THE PRESENCE OF BOYS IN A HOUSE WHERE IT TURNED OUT TWO TEENAGE GIRLS HAD BEEN UNSUPERVISED FOR THE PREVIOUS FOUR DAYS AFTER THEIR MOTHER JACQUELINE A DIVENS RETURNED FROM FLORIDA A FEW DAYS LATER POLICE CHARGED HER WITH TWO MISDEMEANOR COUNTS OF ENDANGERING THE WELFARE OF A CHILD THE MOTHER TOLD THE CORNING NY LEADER THAT SHE HAD TAKEN HER 10YEAROLD SON TO STAY WITH HER SISTERINLAW BUT THOUGHT THE GIRLS COULD LOOK AFTER THEMSELVES WHILE SHE WAS IN FLORIDA A SPOKESMAN FOR THE HORNELL POLICE SAID THAT BECAUSE OF THE EXTENUATING CIRCUMSTANCES HE EXPECTED THAT MS DIVENS IF CONVICTED WOULD BE TREATED LENIENTLY MR GUGGENHEIM PREDICTS THE CASE WHICH GETS ITS FIRST COURT HEARING THURSDAY WILL BE THROWN OUT HE ADDS THAT HE AND HIS WIFE HAVE BEEN TALKING ABOUT LEAVING THEIR OWN 15YEAROLD AND 13YEAROLD HOME ALONE WHEN THEY TAKE A TRIP THIS SPRING ORDINARILY THAT'S A CONVERSATION THAT RESPONSIBLE PARENTS HAVE AMONG THEMSELVES HE SAYS WE WANT OUR KIDS TO HAVE THAT EXPERIENCE WE THINK IT'S A GOOD THING KING & SPALDING THE LARGEST LAW FIRM BASED IN ATLANTA HAS MERGED WITH PORTER & TRAVERS A 15LAWYER FIRM IN NEW YORK THE MOVE SHARPLY INCREASES KING & SPALDING'S PRESENCE IN NEW YORK THE 285LAWYER FIRM OPENED A NEW YORK OFFICE IN 1990 BUT ONLY HAD THREE LAWYERS IN THAT BRANCH IN ADDITION TO THE PORTER & TRAVERS LAWYERS FOUR KING & SPALDING PARTNERS FROM ATLANTA WILL JOIN THE EXPANDED NEW YORK OFFICE JAMES WILDMAN KING & SPALDING'S FORMER MANAGING PARTNER WILL BECOME MANAGING PARTNER OF THE NEW YORK OPERATION RALPH LEVY HAS SUCCEEDED MR WILDMAN AS THE FIRM'S MANAGING PARTNER KING & SPALDING'S MAJOR CLIENTS INCLUDE COCACOLA CO GENERAL ELECTRIC CO AND INTERNATIONAL BUSINESS MACHINES CORP PORTER & TRAVERS SPECIALIZED IN CORPORATE FINANCING MAINLY REPRESENTING US AND FOREIGN FINANCIAL INSTITUTIONS WHO'S NEWS HOWARD H SHAFFERMAN CHIEF OF STAFF OF THE FEDERAL ENERGY REGULATORY COMMISSION WILL JOIN PHILADELPHIABASED BALLARD SPAHR ANDREWS & INGERSOLL AS A PARTNER HE WILL WORK IN THE 250LAWYER FIRM'S PROJECTFINANCE GROUP SPECIALIZING IN ENERGY AND ENVIRONMENTAL MATTERS HIV SETTLEMENT A NEW YORK HOSPITAL SETTLED ITS DISPUTE WITH THE FEDERAL GOVERNMENT OVER THE EMPLOYMENT OF A PHARMACIST INFECTED WITH HIV THE VIRUS THAT CAUSES AIDS LAST YEAR THE HEALTH AND HUMAN SERVICES DEPARTMENT RULED THAT WESTCHESTER COUNTY MEDICAL CENTER VALHALLA NY FACED THE LOSS OF 100 MILLION IN FEDERAL FUNDS ANNUALLY IF IT DIDN'T COMPLY WITH LAWS PROTECTING PEOPLE WITH HIV FROM DISCRIMINATION THE HOSPITAL AGREED TO OFFER THE PHARMACIST A FULLTIME UNRESTRICTED JOB AND PAY HIS LEGAL FEES SAID EVAN WOLFSON AN ATTORNEY AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND WHICH HANDLES LEGAL RIGHTS CASES INVOLVING HIV AND REPRESENTED THE PHARMACIST 9301120080 930112 SALOMON EXECUTIVES DISCUSS REHIRING OUSTED MERIWETHER BY RANDALL SMITH AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TOP EXECUTIVES AT SALOMON BROTHERS INC HAVE BEGUN DISCUSSIONS ABOUT REHIRING FORMER VICE CHAIRMAN JOHN MERIWETHER THE LEGENDARY TRADER WHO LED SALOMON'S PUSH INTO LUCRATIVE HIGHTECH BOND ARBITRAGE TRADING ACCORDING TO PEOPLE FAMILIAR WITH THE FIRM THE 45YEAROLD MR MERIWETHER WAS ONE OF THREE TOP SALOMON OFFICIALS FORCED TO RESIGN FROM THE WALL STREET TRADING POWERHOUSE IN AUGUST 1991 AFTER SALOMON DISCLOSED HAVING MADE A SERIES OF IMPROPER BIDS AT SEVERAL US TREASURY NOTE AUCTIONS LAST MONTH WITHOUT ADMITTING OR DENYING WRONGDOING MR MERIWETHER SETTLED SECURITIES AND EXCHANGE COMMISSION CHARGES THAT HE FAILED TO PROPERLY SUPERVISE THE FIRM'S FORMER TOP GOVERNMENT BOND TRADER PAUL MOZER IN MARCH AFTER SERVING A THREEMONTH SUSPENSION MR MERIWETHER WILL BE FREE TO RETURN TO THE SECURITIES BUSINESS AND ALREADY SOME OF HIS FORMER TOP LIEUTENANTS ARE PUSHING THE SALOMON INC SECURITIES UNIT TO REHIRE HIM THEY INCLUDE ERIC ROSENFELD AND LAWRENCE HILIBRAND WHO DEVELOPED BOND ARBITRAGE TRADING UNDER MR MERIWETHER AND NOW SIT ON SALOMON BROTHERS' POWERFUL EXECUTIVE COMMITTEE WHICH RUNS THE DAYTODAY OPERATIONS OF THE FIRM TALKS BETWEEN SALOMON AND MR MERIWETHER ONLY RECENTLY BEGAN PEOPLE FAMILIAR WITH THE FIRM SAID AND THERE IS NO GUARANTEE THAT MR MERIWETHER KNOWN INSIDE THE FIRM SIMPLY AS JM WILL RETURN BUT THERE'S NO DOUBT THAT SOME AT SALOMON BADLY WANT HIM BACK THE ACTUAL DISCUSSIONS WITH JM ARE AT AN EARLY STAGE BUT THE ISSUE IS CLEARLY FRONT AND CENTER IN TERMS OF PEOPLE HERE A SENIOR SALOMON EXCECUTIVE SAID THE BOND TRADERS' BACKING OF MR MERIWETHER CARRIES WEIGHT BECAUSE THEIR GROUP IS ONE OF SALOMON'S MAIN MONEYMAKERS IN 1990 MEMBERS OF THE BOND ARBITRAGE GROUP GENERATED AN ESTIMATED 400 MILLION PROFIT FOR SALOMON AND HUGE PAYCHECKS FOR THEMSELVES MR HILIBRAND RECEIVED A WHOPPING 23 MILLION BOND ARBITRAGERS MAKE BETS ON CHANGES IN INTEREST RATES ON BONDS OF DIFFERENT MATURITIES GENERATING BIG PROFITS OR LOSSES WITH THE USE OF LEVERAGE OR BORROWING THROUGH THE FIRST NINE MONTHS OF 1992 SALOMON'S PRINCIPAL TRADING OPERATIONS WHICH INCLUDE BOND ARBITRAGE GENERATED 18 BILLION IN REVENUE REPRESENTING TWOTHIRDS OF SALOMON'S NET REVENUE OR TOTAL REVENUE MINUS INTEREST EXPENSE IN THE SECOND QUARTER ALONE SALOMON'S PRINCIPAL TRADING REVENUE WAS A WHOPPING 928 MILLION WITH TRADING A BIG PART OF WALL STREET'S PROFITS MR MERIWETHER IS A HOT COMMODITY HE'S LIKE THE NFL SUPER BOWL COACH SAYS MICHAEL F HOLLAND A FORMER SALOMON EXECUTIVE WHO IS NOW VICE CHAIRMAN OF OPPENHEIMER & CO MR MERIWETHER'S LAWYER THEODORE LEVINE OF WILMER CUTLER & PICKERING IN WASHINGTON DC SAID HIS CLIENT IS IN THE PROCESS OF EXPLORING ALL OPPORTUNITIES THAT ARE AVAILABLE TO HIM THOSE OPPORTUNITIES WOULD INCLUDE DISCUSSIONS WITH SALOMON IF THE ISSUE CAME UP HE DECLINED TO ELABORATE MR MERIWETHER HIMSELF WASN'T AVAILABLE TO COMMENT A SPOKESMAN SAID A SPOKESMAN FOR SALOMON DIDN'T HAVE ANY COMMENT ANY DECISION TO REHIRE MR MERIWETHER POSES A TICKLISH DILEMMA FOR WARREN BUFFETT WHOSE BERKSHIRE HATHAWAY INC OWNS 14 OF SALOMON'S STOCK IT WAS MR BUFFETT WHO LABORED TO CLEAN UP SALOMON'S IMAGE AFTER THE TREASURY BIDDING SCANDAL STEPPING IN AS INTERIM CHAIRMAN WHEN JOHN GUTFREUND WAS FORCED TO RESIGN MR MERIWETHER WAS INVOLVED WITH THE SCANDAL EVEN THOUGH HE RECEIVED THE LIGHTEST PUNISHMENT OF THE TOP SALOMON OFFICIALS WHEN HE SETTLED WITH THE SEC LAST MONTH A 50000 FINE AND THE THREEMONTH SUSPENSION FROM THE SECURITIES INDUSTRY ALTHOUGH MR MERIWETHER REPORTED SALOMON'S ILLEGAL BIDS TO THE FIRM'S SENIOR OFFICERS NONE OF THE EXECUTIVES TOLD THE GOVERNMENT WHAT HAD HAPPENED UNTIL MONTHS LATER BUT IF MR MERIWETHER SHOULD JOIN ANOTHER SECURITIES FIRM OR START HIS OWN OPERATION SALOMON RUNS THE RISK THAT A CORE GROUP OF THE FIRM'S BOND TRADERS MIGHT LEAVE SALOMON TO JOIN HIM THAT COULD COST SALOMON AN IMPORTANT SOURCE OF PROFITS SOME SALOMON WATCHERS BELIEVE THAT THREAT WHETHER IMPLICIT OR ACTUALLY CONVEYED TO MR BUFFETT COULD STRONGLY INFLUENCE THE FIRM'S POSTURE IN TALKING WITH MR MERIWETHER THE FACT IS THAT HAVING MR MERIWETHER HERE WOULD STABILIZE THE BOND ARBITRAGE GROUP SAID A SENIOR SALOMON EXECUTIVE ONE SIGNAL OF SALOMON'S ATTITUDE TOWARD MR MERIWETHER CAME LAST WEEK WHEN IT SETTLED MR MERIWETHER'S BACKPAY CLAIMS FOR ABOUT 18 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE FIRM YOU GIVE A GUY 18 MILLION THAT SAYS YOU LIKE HIM SAID OPPENHEIMER'S MR HOLLAND MANY SALOMON EXECUTIVES GUSH ABOUT MR MERIWETHER'S CONTRIBUTIONS TO THE FIRM JOHN WAS ON THE CUTTING EDGE OF ALL OUR BUSINESS RELATING TO RISK ARBITRAGE AND DERIVATIVES SAID ONE SENIOR SALOMON EXECUTIVE HIS ABILITY TO UNDERSTAND RISK ACROSS AN INTERNATIONAL FRONT IS PROBABLY UNSURPASSED IN THE INDUSTRY SINCE THE SCANDAL SALOMON'S STOCK HAS REBOUNDED FROM A LOW OF 2075 A SHARE TO A CLOSING PRICE YESTERDAY OF 37125 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE BUT THE STOCK GENERALLY HAS LAGGED BEHIND THOSE OF OTHER SECURITIES FIRMS BECAUSE SALOMON HAS LOST GROUND DURING WALL STREET'S STOCKANDBOND UNDERWRITING BOOM REHIRING MR MERIWETHER WOULD CARRY OTHER IMPLICATIONS FOR SALOMON'S BUSINESS MIX AND FUTURE IT COULD TILT SALOMON WHICH ALREADY IS DOMINATED BY THE BOND ARBITRAGE TRADERS EVEN MORE TOWARD TRADING WITH THE FIRM'S OWN CAPITAL AND AWAY FROM CUSTOMER BUSINESS HIS FORMER LIEUTENANTS ALREADY HOLD TOP JOBS MR ROSENFELD WHO INITIALLY SUCCEEDED MR MOZER AS HEAD OF SALOMON'S GOVERNMENT BOND DEPARTMENT WHEN THE BIDDING SCANDAL BROKE IS NOW COHEAD OF SALOMON'S BOND DEPARTMENT MR HILIBRAND IS HEAD OF BOND ARBITRAGE NEITHER RETURNED PHONE CALLS YESTERDAY AT THE SAME TIME BOND ARBITRAGE HAS EVOLVED FROM VIRGIN TERRITORY WHEN MR MERIWETHER AND HIS COHORTS PIONEERED IT INTO A WIDELY PRACTICED ACTIVITY THROUGHOUT WALL STREET AND THAT COULD MEAN THAT MR MERIWETHER AND HIS TRADERS ARE LESS IRREPLACEABLE THAN THEY WERE BEFORE ONE PERSON WHO COULD LOSE FROM MR MERIWETHER'S RETURN IS DERYCK MAUGHAN WHO WAS INSTALLED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SALOMON BROTHERS BY MR BUFFETT MR MERIWETHER WOULD HAVE CONSIDERABLE POWER WITHIN THE FIRM BECAUSE OF THE RESPECT AND LOYALTY HE RETAINS AMONG THE BOND TRADERS MR MAUGHN DIDN'T RETURN A CALL FOR COMMENT MR MERIWETHER IS SOMETHING OF A CULT FIGURE AT SALOMON HIS REPUTATION WAS ONLY ENLARGED WHEN HE WAS FEATURED IN LIAR'S POKER A BOOK ABOUT SALOMON'S MACHO TRADING CULTURE AS OUTBLUFFING MR GUTFREUND IN A HIGHSTAKES EPISODE THAT WAS HOTLY DISPUTED BY SALOMON SOME WALL STREET PEOPLE HAVE SPECULATED THAT MR MERIWETHER MIGHT JOIN BEAR STEARNS & CO ANOTHER FIRM KNOWN FOR TRADING BUT ONE SENIOR BEAR STEARNS EXECUTIVE SCOFFED AT THAT IDEA NOTING THAT BOND ARBITRAGE REQUIRES RISKING HUGE AMOUNTS OF CAPITAL THE EXECUTIVE SAID WE'RE NOT USED TO SOME GUY SAYING WE'RE UP 100 MILLION OR WE'RE DOWN 100 MILLION' I DON'T THINK IT WOULD WORK HERE 9301120079 930112 TECHNOLOGY GENENTECH EXPECTS TO POST PROFIT DROP OF 59 FOR LAST YEAR SAN FRANCISCO GENENTECH INC'S PRESIDENT AND CHIEF EXECUTIVE OFFICER G KIRK RAAB SAID IN AN INTERVIEW THAT FLAT SALES OF THE BIOTECH COMPANY'S HEARTATTACK DRUG ACTIVASE COUPLED WITH HIGH RESEARCH AND DEVELOPMENT COSTS SLASHED GENENTECH'S 1992 PROFIT 59 TO JUST OVER 18 MILLION OR A LITTLE MORE THAN 16 CENTS A SHARE THAT'S DOWN FROM 443 MILLION OR 39 CENTS A SHARE A YEAR EARLIER GENENTECH'S 1992 REVENUE EXCEEDED 540 MILLION UP FROM 5159 MILLION IN 1991 MR RAAB ADDED HE SAID 1992 RESULTS ARE IN LINE WITH WALL STREET EXPECTATIONS AND WILL BE ANNOUNCED JAN 20 THE COMPANY'S STOCK CLOSED AT 3875 A SHARE DOWN 75 CENTS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MR RAAB SAID THE BIGGEST CASHEATERS IN GENENTECH'S PRODUCT DEVELOPMENT PIPELINE HAVE BEEN CONTINUING CLINICAL TRIALS OF ACTIVASE AND OF DNASE THE COMPANY'S TREATMENT FOR CYSTIC FIBROSIS LOOKING AHEAD TO 1993 GENENTECH'S CURRENT ASSUMPTIONS CALL FOR REVENUE OF ABOUT 560 MILLION BUT MR RAAB SAID THE COMPANY EXPECTS TO REVISE ITS FORECAST AT MIDYEAR A MAJOR UNCERTAINTY CLOUDING FUTURE ACTIVASE SALES AND GENENTECH'S BALANCE SHEET COULD BE RESOLVED IN LATE APRIL WHEN SCIENTISTS ANNOUNCE RESULTS OF WHAT GENENTECH HAS BILLED AS THE DEFINITIVE HEADTOHEAD TEST PITTING LIFESAVING ABILITY OF ITS CLOT BUSTING AGENT AGAINST AN OLDER AND CHEAPER COMPETITOR STREPTOKINASE PRIOR STUDIES HAVE SHOWN ROUGHLY EQUAL EFFECTIVENESS BETWEEN ACTIVASE WHICH COSTS ABOUT 2000 A DOSE AND STREPTOKINASE WHICH COSTS ROUGHLY ONETENTH AS MUCH 9301120077 930112 POLITICS & POLICY SADDAM HUSSEIN SEEN TRYING TO BOOST POSTURE OF IRAQ IN DEALING WITH CLINTON ADMINISTRATION BY GERALD F SIEB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS BILL CLINTON IS ABOUT TO LEARN THERE IS SOME METHOD TO SADDAM HUSSEIN'S MADNESS BUT AS ALSO IS OFTEN THE CASE THE IRAQI LEADER APPEARS TO BE MISCALCULATING AND HIS EFFORTS ARE PRODUCING AN OUTCOME THAT IS THE OPPOSITE OF THE ONE HE APPARENTLY HOPES FOR IRAQ CONTINUES TO MOUNT A SERIES OF PROBES AND CHALLENGES OF INTERNATIONAL RESOLVE THE LATEST CAME YESTERDAY WHEN IRAQIS AGAIN RAIDED A UNITED NATIONSSUPERVISED STATION ALONG THE BORDER WITH KUWAIT TO RETRIEVE MATERIAL LOST IN THE PERSIAN GULF WAR SADDAM HUSSEIN APPEARS TO BE TRYING TO MANEUVER INTO A STRONGER POSITION FOR DEALING WITH THE US ONCE PRESIDENTELECT CLINTON TAKES CHARGE HE THEN PROBABLY HOPES TO BEGIN IMPROVING FURTHER ON THIS ENHANCED POSITION WHEN A LESSCONFRONTATIONAL CLINTON ADMINISTRATION IS IN POWER THERE'S ONE PROBLEM THERE'S NO SIGN BILL CLINTON INTENDS TO PLAY ALONG BY ROILING US TEMPERS AND RAISING THE PROFILE OF THE IRAQI PROBLEM SADDAM HUSSEIN'S BEHAVIOR IN THE PAST MONTH IS MAKING IT MORE LIKELY NOT LESS LIKELY THAT MR CLINTON WILL FEEL COMPELLED TO MOVE AGAINST IRAQ EARLY IN HIS ADMINISTRATION SADDAM HUSSEIN MAY UNDERESTIMATE THE NEED OF A BILL CLINTON TO PROVE HIMSELF EARLY AND TO PROVE HIMSELF EARLY AT THE EXPENSE OF SADDAM SAYS FOUAD AJAMI A MIDDLE EAST SCHOLAR WHO HAS ADVISED THE BUSH ADMINISTRATION ON IRAQ THE PRESSURE ON MR CLINTON TO TAKE A STAND WON'T EVEN DIMINISH MUCH IF PRESIDENT BUSH DECIDES TO TAKE A FINAL POKE AT IRAQ BEFORE HE LEAVES OFFICE NEXT WEEK IT'S IMPOSSIBLE TO KNOW PRECISELY WHAT SORT OF LOGIC IS DRIVING THE UNPREDICTABLE IRAQI LEADER THE CURRENT CONFRONTATION ESCALATED A NOTCH LAST NIGHT WHEN THE UN SECURITY COUNCIL CONDEMNED THIS WEEK'S TWO RAIDS ON INSTALLATIONS ALONG THE KUWAIT BORDER SAYING THEY AMOUNT TO CLEARCUT DEFIANCE BY IRAQ THE COUNCIL WARNED OF POSSIBLE SERIOUS CONSEQUENCES THOUGH IT DIDN'T DIRECTLY THREATEN ANY MILITARY ACTION IN ADDITION US OFFICIALS SAID PRIVATELY THAT THEY HAVE SPOTTED IRAQI ANTIAIRCRAFT MISSILES MOVING OUT OF STORAGE FACILITIES IN NORTHERN IRAQ MOVEMENTS SIMILAR TO THOSE BY MISSILES IN SOUTHERN IRAQ LAST WEEK IT ISN'T YET CLEAR WHETHER THE MISSILES ARE MOVING TO AVOID BEING HIT IN ANY US AIR RAID THAT MIGHT COME OR WHETHER THEY'RE BEING MANEUVERED INTO POSITION TO FIRE ON ALLIED PLANES IT'S WIDELY ASSUMED THAT SADDAM HUSSEIN IS PROBING FOR WEAKNESSES IN THE US'S RESOLVE AS PRESIDENT BUSH LEAVES OFFICE AND UNDOUBTEDLY THAT IS PART OF THE IRAQI STRATEGY BUT IT'S ALSO PROBABLE THAT IRAQ IS PLAYING A MORE SUBTLE GAME WITH LONGRANGE GOALS SAY ANALYSTS INSIDE AND OUTSIDE THE GOVERNMENT BY CHEATING NOW ON A WHOLE RANGE OF ISSUES INCLUDING THE FREEDOM OF UN WEAPONS INSPECTORS IRAQ'S RIGHT TO FLY IN FORBIDDEN AIR ZONES IN THE NORTH AND SOUTH AND THE ACCEPTABILITY OF A NEWLY DEMARCATED BORDER WITH KUWAIT SADDAM HUSSEIN PROBABLY EXPECTS TO GET SLAPPED DOWN ON MOST FRONTS BUT HE ALSO MAY CALCULATE THAT AMID ALL THE BLUSTER HE WILL GET AWAY WITH SOME OF HIS GAMBITS THAT WOULD CREATE NEW BENEFICIAL PRECEDENTS ON SENSITIVE ISSUES PUTTING IRAQ IN AN IMPROVED POSITION FROM WHICH IT THEN COULD TRY TO PUSH AHEAD FURTHER UNDER THE CLINTON ADMINISTRATION I THINK WHAT HE'S TRYING TO DO IS TO PRESS IN A NUMBER OF AREAS WHERE HE HAS BEEN RESTRAINED AND TO TRY TO STRETCH THE BOUNDS OF THOSE RESTRAINTS TO THE MAXIMUM LEVEL BEFORE CLINTON COMES IN SAYS ONE SENIOR US OFFICIAL WITH ACCESS TO HIGHLEVEL INTELLIGENCE ON IRAQ THAT WAY WHEN CLINTON COMES IN SADDAM WILL BE ABLE TO DEFINE A NEW STATUS QUO AND HOLD OUT THE PROSPECT OF IMPROVING IT FROM THERE MOREOVER BY PORTRAYING CURRENT TENSIONS AS SOLELY A BYPRODUCT OF MR BUSH'S PERSONAL ANIMUS TOWARD IRAQ SADDAM HUSSEIN MAY BE CALCULATING THAT MR CLINTON WILL WANT TO SHOW HIMSELF TO BE A BETTER STATESMAN BY TURNING DOWN THE HEAT AND MOVING BACK FROM THE BRINK IN WHAT MAY BE THE CLEAREST CLUE OF ITS TACTICS IRAQ ISSUED A STATEMENT ON SUNDAY BLAMING TENSIONS ENTIRELY ON MR BUSH AND OPENLY DECLARING THAT IT EXPECTS AN IMPROVED CLIMATE ONCE MR CLINTON ARRIVES AND IN IRAQI EYES AN IMPROVED CLIMATE WOULD TRANSLATE INTO ABOVE ALL AN EASING OF UN ECONOMIC SANCTIONS TO FURTHER PUSH MR CLINTON TOWARD THAT APPROACH IRAQ APPARENTLY HOPES TO USE THE CURRENT SHOWDOWN TO FRAME THE CHOICES ON IRAQ AS STARK AND UNPALATABLE ONES FOR THE NEW PRESIDENT WHAT HE IS DOING IS PRESENTING CLINTON WITH TWO SCENARIOS SAYS MOHAMMED WAHBIE A FORMER EGYPTIAN DIPLOMAT EITHER YOU CAN GET THE US INVOLVED IN ANOTHER CONFLICT IN THE MIDDLE EAST WHICH MIGHT DETRACT YOUR ATTENTION FROM YOUR ECONOMIC AGENDA OR YOU CAN CALM THINGS DOWN ANIVE YOUR ATTENTION TO THE INTERNAL FRONT WHAT'S MORE MR WAHBIE SAYS IRAQ MAY FIGURE THAT THE IDEA OF A CONFLICT WILL SEEM PARTICULARLY UNAPPEALING TO MR CLINTON BECAUSE HE MAY SEE SIGNS OF A CREEPING AMBIVALENCE IN A COMMUNITY WEARY OF STANDING UP TO IRAQ ON A REGULAR BASIS ALREADY CHINA IS COOL AT THE UN TOWARD THE WESTERN ALLIES' NOFLY ZONE IN SOUTHERN IRAQ FROM WHICH IRAQI AIRCRAFT ARE BANNED AND EVEN SOME US ANALYSTS ARE STARTING TO ARGUE THAT A REARMING OF IRAN WILL BE A MORE IMPORTANT CHALLENGE FOR THE CLINTON ADMINISTRATION THAN A MISBEHAVING IRAQ STILL MR WAHBIE AND OTHERS THINK SUCH IRAQI MANEUVERS SERIOUSLY MISCALCULATE THE PRESSURES ON MR CLINTON TO TAKE A STAND OF HIS OWN AGAINST IRAQ PRIVATELY CLINTON ADVISERS SAY THEY HAVE NO DOUBT THAT THEY WILL NEED TO PROVE THEIR METTLE BY REACTING DECISIVELY IF THEY ARE CHALLENGED BY IRAQ AFTER MR CLINTON TAKES OFFICE JAN 20 IN FACT SOME SEEM ALMOST TO RELISH THE IDEA OF A MOVE AGAINST IRAQ BECAUSE ANIMOSITY TOWARD SADDAM HUSSEIN RUNS SO HIGH IN THE US HITTING OUT AT IRAQ MAY BE THE LEAST POLITICALLY PAINFUL WAY POSSIBLE FOR MR CLINTON THE VIETNAM WAR PROTESTER TO DEMONSTRATE THAT HE AND THE DEMOCRATS REALLY HAVE CHANGED THEIR VIEWS ON THE USE OF FORCE MOREOVER INCOMING DEFENSE SECRETARY LES ASPIN HAS MADE IT CLEAR THAT HE WILL BE QUICKER TO RECOMMEND USE OF FORCE IN A WIDER VARIETY OF SHAPES AND SIZES THAN THE BUSH ADMINISTRATION WHICH HAS TENDED TO FAVOR MASSIVE USES OF FORCE OR NOTHING LIKE OTHER MEMBERS OF THE INCOMING ADMINISTRATION MR ASPIN BELIEVES THE END OF THE COLD WAR STANDOFF WITH THE SOVIET UNION GIVES THE US MORE FLEXIBILITY TO USE MILITARY FORCE IN INCREMENTAL FASHION IN REGIONAL TROUBLE SPOTS SUCH AS IRAQ WITHOUT FEAR OF BEING SUCKED INTO LONGTERM QUAGMIRES A BIGGER CHALLENGE FOR MR CLINTON IS GOING TO BE KEEPING THE INTERNATIONAL ATTITUDE AS HARDNOSED AS THE US ONE THE BIGGEST DANGER FOR THE CLINTON ADMINISTRATION IS THAT OVER TIME THE SANCTIONS ARE WEAKENED BECAUSE PEOPLE DON'T SEEM INTERESTED IN THEM SAYS WALTER CUTLER A FORMER US MIDEAST AMBASSADOR THERE COULD BE EROSION AND ATROPHY IN THE UN POSTURE AND THAT'S WHAT CLINTON HAS TO AVOID IN THE FINAL ANALYSIS THOUGH THERE IS LITTLE DOUBT THAT SADDAM HUSSEIN WILL CONTINUE TO CHALLENGE THE US SIMPLY BECAUSE HIS CURRENT PLIGHT IS SO UNTENABLE IT'S THE VERY UNACCEPTABLE NATURE OF THE SITUATION FOR HIM SAYS MR AJAMI WE HAVE FOR ALL EFFECTIVE PURPOSES PARTITIONED THE COUNTRY FOR HIM HE'S LEFT WITH A SITUATION THAT HE FINDS INTOLERABLE SO HE MUST ALWAYS PROBE THE LIMITS 9301120076 930112 WHY GLOBAL INVESTORS BET ON AUTOCRATS NOT DEMOCRATS BY MICHAEL R SESIT AND ROBERT STEINER STAFF REPORTERS OF THE WALL STREET JOURNAL HERE'S THE CHOICE TWO HUGE COUNTRIES BOTH WITH EXPANDING MIDDLE CLASSES OFFERING ENORMOUS CONSUMER POTENTIAL AND BOTH OPENING UP TO FOREIGN INVESTORS ONE IS THE WORLD'S LARGEST DEMOCRACY THE OTHER IS THE WORLD'S LARGEST COMMUNIST POWER WHERE WOULD YOU INVEST INDIA OR CHINA GLOBAL MONEY MANAGERS ARE COMING DOWN SOLIDLY IN FAVOR OF THE COMMUNISTS IT ISN'T AS STRANGE AS IT SEEMS SAYS WILLIAM L WILBY A VICE PRESIDENT AT OPPENHEIMER MANAGEMENT CORP BOTTOM LINE MARKETS PREFER POLITICAL ORDER AND STABILITY TO ANY PARTICULAR POLITICAL DOCTRINE WHETHER IT BE DEMOCRACY COMMUNISM OR WHATEVER HE SAYS AS LONG AS COMMUNISM PROVIDES AN ABILITY TO MAKE MONEY AND STABILITY INVESTORS WILL BE ATTRACTED TO CHINA SO FAR CHINA'S LEADERS HAVE DELIVERED INDIA'S HAVEN'T WHEN YOU LOOK AT INDIA'S RECORD THEY HAVE A HISTORY OF BACKING LOSERS SAYS JOHN HICKLING A GLOBAL PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON THEY WERE ONE OF THE SOVIET UNION'S MAJOR TRADING PARTNERS THEY BACKED THE CONCEPT OF THE CENTRALIZED COMMAND ECONOMY AND DESPITE RECENT ATTEMPTS AT ECONOMIC REFORM THE COUNTRY HAS BEEN RACKED BY RELIGIOUS VIOLENCE AND FINANCIAL SCANDALS THAT MR HICKLING PREDICTS WILL DETER FOREIGN INVESTORS IT ISN'T EASY TO INVEST IN EITHER COUNTRY INDIA FIRST ALLOWED FOREIGNERS TO INVEST DIRECTLY IN INDIAN STOCKS ONLY LAST SEPTEMBER AND THAT WAS LIMITED TO INSTITUTIONS EACH OF WHICH MUST APPLY FOR PERMISSION ONLY EIGHT HAVE BEEN APPROVED SO FAR AND THERE ARE LOTS OF RESTRICTIONS AND IMMENSE CAPITAL GAINS TAXES ON SHARES SOLD WITHIN A YEAR RECEIPTS REPRESENTING SHARES OF ONLY TWO INDIAN COMPANIES TRADE OUTSIDE INDIA AND IN SOME COUNTRIES OWNERSHIP OF THOSE IS LIMITED TO INSTITUTIONS FOREIGN INDIVIDUAL INVESTORS HAVE ACCESS ONLY TO A FEW MUTUAL FUNDS CHINA ISN'T MUCH DIFFERENT EIGHTEEN MAINLAND COMPANIES HAVE ISSUED B SHARES THOSE AVAILABLE TO FOREIGNERS AND ANOTHER THREE COMPANIES ARE EXPECTED TO ISSUE THEM IN THE CURRENT QUARTER FOR THE MOST PART THESE STOCKS WHICH TRADE ON CHINA'S TWO EMBRYONIC EXCHANGES SHANGHAI AND SHENZHEN ARE OWNED BY INSTITUTIONS BUT CHINA HAS ONE BIG ADVANTAGE INDIA LACKS HONG KONG THE COLONY PROVIDES A CRUCIAL ALBEIT INDIRECT LINK FOR BILLIONS OF DOLLARS TO FLOW INTO CHINA'S BURGEONING ECONOMY ESPECIALLY FROM CHINESE INVESTORS IN HONG KONG WHO STILL HAVE STRONG LINKS TO THE MAINLAND IN HONG KONG YOU HAVE A CREDIBLE STEPPING STONE FOR INVESTMENT INTO CHINA SAYS TIMOTHY LOVE A PORTFOLIO MANAGER AT MARINVEST A NEW YORKBASED SUBSIDIARY OF HONGKONG & SHANGHAI BANKING CORP THAT IS ENHANCED BY AN ENGLISHSPEAKING INVESTMENT MANAGEMENT COMMUNITY IN HONG KONG WHICH HAS GOOD LINKS TO WALL STREET THERE IS ALSO A DEGREE OF TRANSPARENCY AND EFFICIENCY IN THE HONG KONG MARKET THAT ISN'T YET AVAILABLE IN THE BOMBAY MARKET ADDS MICHAEL LAI AN INVESTMENT MANAGER AT LEHMAN GLOBAL ASSET MANAGEMENT LTD IN LONDON IN ADDITION THE HONG KONG DOLLAR IS PEGGED TO THE US DOLLAR MAKING INVESTMENTS IN THE COLONY THAT MUCH MORE APPEALING IN THE END SAYS MR LAI IT IS THE UNTAPPED POTENTIAL OF CHINA'S ROUGHLY 11 BILLION PEOPLE ABOUT A QUARTER TO A THIRD MORE THAN IN INDIA THAT MAKES CHINA SO ATTRACTIVE FOR ALL PRACTICAL PURPOSES CHINA UNTIL FIVE YEARS AGO WAS CLOSED TO ALL FOREIGNERS INDIA HAS BEEN A DEMOCRACY SINCE GAINING INDEPENDENCE IN 1947 SO FOREIGN MULTINATIONALS HAVE BEEN IN INDIA FOR SOME TIME MONEY MANAGERS ALSO ARGUE THAT CHINA ENJOYS CLOSER ECONOMIC LINKS THAN INDIA TO SOME KEY MAJOR INDUSTRIAL ECONOMIES AND COMMANDS MUCH MORE OF THE WORLD'S ATTENTION THAN DOES INDIA MR LOVE OF MARINVEST NOTES THAT PRESIDENT RICHARD NIXON PAID A HIGHLY PUBLICIZED VISIT TO CHINA IN 1972 THAT GEORGE BUSH WAS AMERICA'S ENVOY THERE AND THAT CHINA ENJOYS MOSTFAVOREDNATION TRADING STATUS WITH THE US TOGETHER HE SAYS THAT ENABLES CHINA TO MAINTAIN ITS VISIBILITY IN THE US CHINA ALSO BASKS TO SOME EXTENT IN THE AURA OF OTHER THRIVING NATIONS THAT SURROUND IT AND THOSE NATIONS HAVEN'T ONLY BEEN PROFITABLE FOR INVESTORS THEY'VE BEEN POLITICALLY LESS RAMBUNCTIOUS THAN INDIA THERE IS A KIND OF ASIAN POLITICAL MODEL THAT THE WORLD HAS COME TO TOLERATE A NOTION OF A SORT OF BENIGN DICTATORSHIP SAYS MR WILBY OF OPPENHEIMER YOU SEE IT IN NEARLY EVERY COUNTRY IN ASIA INCLUDING SOUTH KOREA SINGAPORE AND THAILAND IN CONTRAST TO THAT STABILITY INDIA IN THE PAST 45 YEARS HAS HAD TWO POLITICAL LEADERS ASSASSINATED SUFFERED DEEPSEATED RELIGIOUS STRIFE AND FOUGHT THREE WARS WITH ITS NEIGHBOR PAKISTAN IT ALSO HAS A WELLENTRENCHED BUREAUCRACY THAT FOR YEARS CONTROLLED IMPORTS AND EXPORTS COMPANIES' FOREIGN EXCHANGE HOLDINGS AND CORPORATE EXPANSION AND IS NOW RELUCTANT TO SURRENDER POWER INDIA'S FINANCIAL SYSTEM IS NO GREAT SHAKES EITHER IN EARLY 1992 INDIAN STOCKS SOARED IN A SPECULATIVE FRENZY PROMPTED BY THE EXPECTED OPENING OF THE STOCK MARKET TO FOREIGN INVESTORS BY LATE SPRING THE MARKET WAS CRASHING IN A 13 BILLION SECURITIESDEALING SCANDAL THAT LED TO NUMEROUS ARRESTS OF BROKERS BANKERS AND GOVERNMENT OFFICIALS AND THE SUSPENSION OF TRADING ON THE BOMBAY EXCHANGE FOR FIVE WEEKS WITH STOCKS TRADING AT ABOUT 25 TIMES 1993 EARNINGS MANY MONEY MANAGERS CONSIDER INDIAN SHARES TOO PRICEY THE THREE CHINESE EXCHANGES ARE CHEAPER HONG KONG IS SELLING AT ABOUT NINE TIMES 1993 EARNINGS SHANGHAI B SHARES AT 15 TIMES AND SHENZHEN B SHARES AT 18 TIMES AND WHILE THE BOMBAY STOCK MARKET ADVANCED 178 LAST YEAR IN DOLLAR TERMS AND 624 SINCE THE END OF 1989 SOME ANALYSTS REGARD THAT AS LOW GIVEN THE RISKS ASSOCIATED WITH EMERGING MARKETS OF THE TWO COUNTRIES CHINA SEEMS TO BE TAKING CAPITALISM MORE TO HEART MONEY MANAGERS DON'T CONSIDER INDIANS TO BE AS ENTREPRENEURIAL AS THE CHINESE MR LOVE OF MARINVEST NOTES THAT THE NONRESIDENT INDIANS HAVEN'T INVESTED BACK INTO INDIA ANYWHERE AS SIGNIFICANTLY AS THE OFFSHORE CHINESE HAVE WITH CHINA STILL INDIA OFFERS CONSIDERABLE INVESTMENT POTENTIAL IT HAS A LARGE MIDDLE CLASS ROUGHLY 6000 LISTED COMPANIES THAT TRADE ON 19 STOCK EXCHANGES AND A DEVELOPED FINANCIAL SYSTEM MANY OF ITS LARGEST PRIVATE COMPANIES AND ITS LARGEST STOCK EXCHANGE BOMBAY ARE MORE THAN 100 YEARS OLD ECONOMISTS PREDICT THE INDIAN ECONOMY WILL GROW 3 TO 6 ANNUALLY OVER NEXT SEVERAL YEARS AND EVENTUALLY THEY SAY INVESTMENT ATTITUDES ABOUT INDIA WILL CHANGE ALTHOUGH IT MAY TAKE YEARS AT SOME POINT 15 YEARS FROM NOW WE MAY LOOK BACK TO PLACES LIKE INDIA AND SAY THESE WERE THE GREATEST COUNTRIES IN ASIA BECAUSE THEY WENT THROUGH THEIR POLITICAL TRANSITIONS EARLY SAYS MR WILBY OF OPPENHEIMER THEY'RE GOING THROUGH THE DIFFICULT THROES OF THE TRANSITION TO DEMOCRACY THAT MANY OTHER ASIAN COUNTRIES INCLUDING CHINA MAY HAVE TO GO THROUGH IN THE NEXT 10 TO 15 YEARS HE SAYS THE REAL QUESTION FOR ASIA IS WHETHER THE BENIGN DICTATORSHIP IS A STABLE MODEL 9301120075 930112 MARKETING & MEDIA ADVERTISING A SLEW OF FIRMS ARE CAMPAIGNING FOR PIECE OF INAUGURAL DAY ACTION BY KEVIN GOLDMAN HAIL TO THE HYPE CORPORATIONS SENSING AN UPBEAT MOOD IN THE COUNTRY ARE CLAMORING TO RIDE ON PRESIDENTELECT CLINTON'S COATTAILS AND GET THE MOST OF OUT OF HIS INAUGURATION THE SWEARINGIN CEREMONY ON JAN 20 WILL CAP FOUR DAYS OF POLITICAL AND NONPARTISAN HOOPLA INVOLVING SOME OF THE NATION'S BESTKNOWN ADVERTISERS INCLUDING PEPSICO ANHEUSERBUSCH NESTLE AND BRISTOLMYERS SQUIBB PEPSICO PLANS TO ANNOUNCE A ONETIME ADVERTISEMENT TIED SPECIFICALLY TO THE INAUGURATION AND NEARLY EVERYONE ELSE IS TRYING TO GET A PIECE OF THE ACTION NO MATTER HOW TENUOUS THE CONNECTION EVEN PLAYBOY'S PLAYMATES AND SEA WORLD'S SHAMU THE WHALE ARE INVOLVED WITH INAUGURAL TIEINS COMPANIES WANT TO LINK THEIR NAMES TO CHANGE AND AN UPLIFTING MOOD WHICH IS WHAT IS SURROUNDING THIS INAUGURATION SAYS VICTOR IMBIMBO PRESIDENT OF THE HADLEY GROUP A STAMFORD CONN PROMOTIONAL MARKETING AGENCY A SPOKESMAN AT GENERAL MOTORS GUSHES IT'S A REAL MARKETING OPPORTUNITY THAT'S EXACTLY WHAT IRKS CRITICS WHAT WE'RE SEEING IS THE SELLING OF THE PRESIDENCY PART II' COMPLAINS MICHAEL JACOBSON COFOUNDER OF THE CENTER FOR THE STUDY OF COMMERCIALISM HE IS ALSO EXECUTIVE DIRECTOR OF THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST WHICH LAST WEEK CRITICIZED ANHEUSERBUSCH OVER ITS PLANS TO GRACE THE INAUGURAL PARADE WITH A FOURTON BUDWEISER BEER WAGON DRAWN BY CLYDESDALE HORSES COMPANIES SAYS MR JACOBSON ARE RECOGNIZING THE TREMENDOUS PUBLIC RELATIONS VALUE IN ASSOCIATING THEMSELVES IN A POSITIVE PUBLIC EVENT DOMESTIC AUTO MAKERS WHICH HAVE BEEN TAKING A PUBLIC RELATIONS AND FINANCIAL DRUBBING FROM SAVVIER FOREIGN COMPETITORS HAVE MADE FAST TRACKS TO THE INAUGURATION THE SOCALLED BIG THREE GM FORD MOTOR AND CHRYSLER ARE PROVIDING A TOTAL OF 500 CARS FOR THE PARADE WHICH WILL NO DOUBT GET REPEATED EXPOSURE ON NETWORK COVERAGE THE SPOKESMAN FOR GM WHICH IS LENDING 220 VEHICLES IN A MIXTURE OF RED WHITE AND BLUE SAYS THE GESTURE REFLECTS BOTH PUBLIC SERVICE AND PROMOTION WHILE A GREAT DEAL OF ATTENTION WILL FOCUS ON THE ACTUAL SWEARINGIN AND INAUGURATION SPEECH DELIVERED BY THE FIRST DEMOCRATIC PRESIDENT IN 12 YEARS THE REAL KICKOFF FOR PROMOTIONAL PURPOSES IS THE BELLS FOR HOPE CELEBRATION AT 6 PM EST ON JAN 17 MR CLINTON WILL RING A REPLICA OF THE LIBERTY BELL AT THE GATES OF ARLINGTON NATIONAL CEMETERY AMERICANS ARE INVITED TO RING BELLS OF THEIR OWN BART SIMPSON THE BRAT OF THE ANIMATED FAMILY THE SIMPSONS MAKES A CAMEO APPEARANCE IN A HALFMINUTE PUBLIC SERVICE ANNOUNCEMENT PROMOTING THE BELL RINGING EVENT ROBERT CHANDLER SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT THE LOS ANGELES OFFICE OF OMNICON GROUP'S BBDO HEADED UP THE PRO BONO TEAM THAT PRODUCED THE SPOT AND GREY ADVERTISING PRODUCED A BELL FOR HOPE POSTER ALSO ON A PRO BONO BASIS PLAYBOY ENTERPRISES WILL HAVE TWO PLAYMATES WHO ARE YET TO BE SELECTED RING BELLS PERHAPS AT THE PLAYBOY MANSION WE'RE EXCITED ABOUT A NEW GENERATION GOING TO THE WHITE HOUSE SAYS A PLAYBOY SPOKESWOMAN SHAMU THE WHALE AN ATTRACTION AT ANHEUSERBUSCH'S SEA WORLD IN SAN DIEGO IS EXPECTED TO SURFACE LONG ENOUGH TO RING A BELL ADMITTEDLY THE CLANGING OF BELLS MAY BE OF DUBIOUS NEWS VALUE BUT IT WILL NONETHELESS BE DUTIFULLY RECORDED BY PERRI PHARRIS PRODUCTIONS A VIDEO NEWSRELEASE PRODUCER THAT WILL PROMPTLY FEED A NEWS CLIP ON WEST COAST BELL RINGING FEATS TO LOCAL AND NETWORK NEWS OPERATIONS NATIONWIDE OTHER POSSIBLE PARTICIPANTS IN THE VIDEO PUBLICRELATIONS FIRM'S TIEIN INCLUDE BEER DRINKERS OF AMERICA AND WALT DISNEY'S DISNEYLAND IT'S A CHANCE FOR THESE COMPANIES TO GRAB SOME NATIONAL PUBLICITY SAYS PATRICK PHARRIS COOWNER OF THE NEWPORT BEACH CALIF FIRM AND IT'S A CHANCE FOR THE NETWORKS TO ROUND OUT A NATIONAL STORY WITH FOOTAGE THEY OTHERWISE WOULDN'T BOTHER SHOOTING THEMSELVES THE REAL BIG GUNS ARE WAITING FOR THE ACTUAL INAUGURATION OR PARTIES CLOSELY ASSOCIATED WITH THE CEREMONY PEPSICO IS FOOTING A GOOD CHUNK OF THE TAB FOR AN MTV ROCK THE VOTE PARTY SCHEDULED FOR JAN 19 AT A WASHINGTON HOTEL A PEPSICO SPOKESMAN WHO DECLINES TO SAY HOW MUCH THE SHINDIG WILL COST THE SOFT DRINK MAKER SAYS THE COMPANY WANTS TO CELEBRATE THE INCREASE IN TURNOUT AMONG YOUNG VOTERS PEPSICO IS ALSO INSTRUCTING ITS AD AGENCY BBDO TO PURCHASE FULLPAGE ADS NEAR INAUGURATION STORIES THAT RUN IN SEVERAL NEWSPAPERS ON JAN 21 INCLUDING THE NEW YORK TIMES BOSTON GLOBE LOS ANGELES TIMES AND THE ATLANTA CONSTITUTION THE HOMETOWN PAPER OF RIVAL COCACOLA THE ADS FOR THE NEW PRODUCT CRYSTAL PEPSI SPORT THE HEADLINE THE WORLD IS THIRSTY FOR CHANGE A COMPANY SPOKESMAN SAYS THE AD IS EXPECTED TO RUN ONLY ONCE AND REFERS TO THE CHANGE ASSOCIATED WITH THE CLINTON CAMPAIGN NESTLE BEVERAGE CO IS DESCENDING UPON WASHINGTON WITH ENOUGH OF ITS CARNATION HOT COCOA MIX TO FILL 100000 TUMMIES ON INAUGURATION DAY NEVER MIND THAT THE POLICE ARE BRACING FOR CROWDS EXPECTED TO SWELL TO THREE TIMES THAT AMOUNT BANNERS WITH A NEWLY DESIGNED CARNATION LOGO WILL BE BILLOWING IN THE WINTER BREEZE ABOVE THE NESTLE BOOTH AND WHAT WOULD AN AMERICAN SPECTACLE LIKE THE INAUGURATION BE WITHOUT WELL MISS AMERICA THIS YEAR'S REIGNING BEAUTY CONTEST QUEEN LEANZA CORNETT IS EXPECTED TO SHOW UP AT CLAIROL INC'S FREE FRESHUP LOUNGE FREE TO THOSE IN POLITICS AND THE MEDIA WHO RECEIVE INVITATIONS THAT IS ACCORDING TO A CLAIROL SPOKESWOMAN THE BEAUTY PRODUCTS UNIT OF BRISTOLMYERS SQUIBB HAS DONE SOMETHING SIMILAR AT EACH PRESIDENTIAL INAUGURATION SINCE THE 1960S IT'S OUR PART SHE SAYS AT KEEPING AMERICA BEAUTIFUL REVLON INTERNATIONAL CONSOLIDATED ITS INTERNATIONAL MEDIA SERVICES ACCOUNT WITH YOUNG & RUBICAM NEW YORK REVLON ESTIMATED BILLINGS FOR THE ACCOUNT AT 60 MILLION TO 70 MILLION THE BUSINESS PREVIOUSLY WAS SPLIT AMONG MEDIA CONCERNS ON A COUNTRYBYCOUNTRY BASIS REVLON SAID YOUNG & RUBICAM WILL PLAN AND BUY ADVERTISING SPACE FOR REVLON OUTSIDE THE US AND CANADA THE AGENCY ALSO WILL TRANSLATE AND MODIFY ADS CREATED BY TARLOW ADVERTISING REVLON'S INHOUSE AGENCY FOR GLOBAL BRANDS IN INTERNATIONAL MARKETS INCLUDING REVLON ULTIMA II AND FLEX REVLON INTERNATIONAL IS A UNIT OF MACANDREWS & FORBES HOLDINGS NEW YORK ACCOUNT EMPIRE KOSHER POULTRY INC THE MIFFLINTOWN PA COMPANY THAT BILLS ITSELF AS THE LARGEST KOSHER POULTRY PRODUCER IN THE WORLD TAPPED FOLLIS/DEVITO/VERDI NEW YORK FOR ITS ESTIMATED 5 MILLION ACCOUNT WHICH WAS PREVIOUSLY HANDLED INHOUSE EMPIRE INTENDS TO LAUNCH AN OUTDOOR AND PRINT CAMPAIGN IN THE NEW YORK REGION TO STRESS THE BENEFITS OF KOSHER POULTRY BORDEN BORDEN INC NEW YORK SAID IT WAS CONSIDERING HOLDING A REVIEW FOR ITS SNACKFOODS ACCOUNTS CURRENTLY AT WB DONER OF BALTIMORE AND DETROIT THE ACCOUNT WITH ESTIMATED BILLINGS OF 10 MILLION TO 15 MILLION INCLUDES WISE POTATO CHIPS AND A NEW LINE OF BORDENBRANDED SNACKS BORDEN RECENTLY CONSOLIDATED ALL ITS DAIRY PRODUCT ADVERTISING AT GREY ADVERTISING NEW YORK AND ALL ITS PASTA ACCOUNTS AT SAATCHI & SAATCHI'S CME KHBB MINNEAPOLIS IF THERE WERE A REVIEW A SPOKESMAN SAID IT WOULDN'T BE A MAJOR FIELD OF COMPETITORS WHO'S NEWS DICK KARP EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR AT GREY ADVERTISING IS RETIRING THE AGENCY SAID MR KARP'S PLANNED DEPARTURE LEAVES GREY'S CREATIVE DEPARTMENT IN THE SOLE CHARGE OF STEVE NOVICK THE EXECUTIVE VICE PRESIDENT WHO SHARED THE CREATIVE DIRECTOR TITLE WITH MR KARP BERNIE ROSNER EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR AT WPP GROUP'S SCALI MCCABE SLOVES IS LEAVING THE AGENCY TO BECOME AN EXECUTIVE CREATIVE DIRECTOR AND GROUP CREATIVE DIRECTOR AT WELLS RICH GREENE BDDP THE MOVE TAKES EFFECT LATER THIS MONTH 9301120074 930112 BIOTECHNOLOGY NEW CALGENE TOMATO MIGHT HAVE TASTED JUST AS GOOD WITHOUT GENETIC ALTERATION BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DAVIS CALIF WHILE AMERICANS SPEND MORE THAN 25 BILLION ANNUALLY ON FRESH TOMATOES MONEY CAN'T BUY A GOOD WINTER TOMATO IN MOST PARTS OF THE COUNTRY MEALY IN TEXTURE MOST OF THEM ARE PICKED HARD AND GREEN TO SURVIVE SHIPPING AND THEN GASSED WITH ETHYLENE TO TURN THEM RED TINY CALGENE INC WOULD LIKE TO MAKE THIS THE LAST WINTER OF DISCONTENT FOR TOMATO LOVERS TOMATO PLANTS SPROUTING IN ITS LABS ARE EXPECTED TO BE THE FIRST GENETICALLY ALTERED FOOD TO MAKE THE LEAP FROM PETRI DISH TO DINNER PLATE CALGENE SAYS THAT REVERSING THE SOFTENING EFFECT OF ONE OF THE FRUIT'S SEVERAL THOUSAND GENES WILL PERMIT ITS TOMATOES TO RIPEN LONGER ON THE VINE AND DEVELOP MORE TASTE BEFORE SHIPPING IT EXPECTS FINAL FOOD AND DRUG ADMINISTRATION APPROVAL FOR ITS FLAVR SAVR TOMATOES THIS SPRING WITH SHIPPING STARTING LATE THIS SUMMER BUT A GROWING NUMBER OF BIOTECH EXPERTS CONTEND THAT CALGENE'S ABILITY TO DELIVER A SUPERIOR TOMATO WILL HAVE LITTLE IF ANYTHING TO DO WITH BIOTECHNOLOGY THE COMPANY'S OWN PEERREVIEWED RESEARCH AND THE WORK OF OTHER SCIENTISTS INDICATE THAT SHUTTING OFF A SINGLE GENE TO DELAY SOFTENING DOESN'T HAVE MUCH OF AN EFFECT ON TOMATO RIPENING GARDEN VARIETY BREEDING MARKETING AND SPECIAL HANDLING NOT BIOTECHNOLOGY WILL BE THE PRINCIPAL REASONS CALGENE IS ABLE TO PRODUCE A PREMIUM TOMATO THE EXPERTS SAY THERE'S NOT GOING TO BE A SINGLE GENE THAT'S GOING TO GIVE US A BETTER TASTING TOMATO ASSERTS EDWARD TIGCHELAAR PROFESSOR OF HORTICULTURE AT PURDUE UNIVERSITY AND AN AUTHORITY ON THE TOMATO HANDLING IS AS IMPORTANT OR MORE IMPORTANT THAN ALTERING GENES IN GETTING A BETTER TOMATO TO MARKET HE SAYS YESTERDAY'S TRADING IN CALGENE SHARES UNDERSCORED PUBLIC SKITTISHNESS ABOUT CALGENE'S BIOTECH PROSPECTS CALGENE'S STOCK PRICE PLUNGED FOLLOWING PUBLISHED REPORTS OVER THE WEEKEND THAT ITS TOMATO RESEARCH PARTNER GIANT CAMPBELL SOUP CO WAS BACKING AWAY FROM USING THE GENESPLICING TECHNOLOGY IN ITS SOUP AND OTHER PRODUCTS CONTAINING PROCESSED TOMATOES IN FACT CAMPBELL BASED IN CAMDEN NJ HAS SAID REPEATEDLY IN RECENT MONTHS THAT IT WON'T CONSIDER USING THE TECHNOLOGY UNTIL IT SEES A CLEAR DEMAND FROM CONSUMERS CALGENE SHARES FELL 125 TO CLOSE AT 16625 IN OVERTHECOUNTER TRADING ON HEAVY VOLUME OF NEARLY 15 MILLION SHARES LAST WEEK TO MOLLIFY CRITICS OF THE SAFETY OF BIOENGINEERED FOOD CALGENE SAID IT WOULD REQUEST THAT THE FDA APPROVE ITS ALTERED GENE AS A FOOD ADDITIVE CALGENE SAID IT TOOK THE STEP TO COUNTER CHARGES THAT FDA RULES IN PLACE SINCE LAST SPRING DON'T ADEQUATELY SCRUTINIZE BIOENGINEERED FOODS THE COMPANY SAID THE NEW APPROVAL PROCESS ISN'T EXPECTED TO DELAY THE INTRODUCTION OF THE FLAVR SAVR FOR ROGER SALQUIST CALGENE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE TOMATOES ARE CRUCIAL TO HIS SMALL COMPANY'S SUCCESS AND TO THE FUTURE OF THE MULTIBILLIONDOLLAR BIOTECHNOLOGY INDUSTRY THE INDUSTRY HAS BEEN COUNTING ON THE FLAVR SAVR TO WHET CONSUMER APPETITES FOR BIOENGINEERED FOOD INDEED SOME INDUSTRY OFFICIALS BELIEVE THE FLAVR SAVR COULD SET BACK THE ENTIRE FIELD OF BIOENGINEERED FOOD IF IT FLOPS WITH CONSUMERS IF THE TECHNOLOGY IS SHOWN TO BE NONESSENTIAL IT'S A BAD COMINGOUT PARTY FOR BIOTECH SAYS AN INDUSTRY CONSULTANT WHO SEEKS ANONYMITY CALGENE RIVALS ARGUE THAT THE COMPANY'S TECHNOLOGY ISN'T MUCH OF AN IMPROVEMENT ON TRADITIONAL TOMATOBREEDING TECHNIQUES HARRY KLEE CHIEF TOMATO SCIENTIST AT MONSANTO CO SAYS THE ST LOUISBASED COMPANY'S OWN GENEALTERED TOMATOES WHICH WON'T BE AVAILABLE UNTIL 1995 AT THE EARLIEST WILL REMAIN FIRM FOR THREE TO FOUR WEEKS AFTER PICKING COMPARED WITH THE WEEK OR SO DELAY IN RIPENING ACHIEVED BY THE FLAVR SAVR IT'S AN INFERIOR TECHNOLOGY BUT I'M CONVINCED CALGENE WILL PRODUCE A SUPERIOR TOMATO COMPARED WITH MOST OF THE TASTELESS WINTER TOMATOES CURRENTLY ON THE MARKET MR KLEE SAYS HE CONTENDS THAT CALGENE COULD HAVE DEVELOPED ITS TOMATO USING TRADITIONAL BREEDING TECHNIQUES ANOTHER COMPANY IMPERIAL CHEMICAL INDUSTRIES PLC LONDON WHICH HAS DEVELOPED ESSENTIALLY THE SAME TOMATO TECHNOLOGY AS CALGENE SAYS IT HASN'T ANY INTENTION OF MARKETING TOMATOES BASED ON THE SINGLE GENE CLEARLY OUR OPINION IS IT ISN'T WORTH IT JUST ON A SOFTENING BASIS SAYS SIMON BEST BUSINESS MANAGER FRUIT AND VEGETABLES OF ICI'S SEEDS DIVISION IT'S NOT EFFECTIVE PARTICULARLY ON FLAVOR THAT'S THE ISSUE ICI IS LOCKED IN A PATENT DISPUTE WITH CALGENE OVER WHO DEVELOPED THE TECHNOLOGY FIRST MR BEST SAYS THERE ARE AT LEAST THREE OR FOUR CRITICAL GENES EACH FOR FLAVOR AND SOFTENING AMONG THE 100 OR SO THAT ARE ACTIVATED DURING TOMATO RIPENING CALGENE'S PEERREVIEWED SCIENTIFIC ARTICLES ON THE ALTERED TOMATO GENE DON'T PROVIDE A RINGING AFFIRMATION OF ITS FLAVR SAVR TECHNOLOGY EITHER THE LATEST PUBLISHED LAST YEAR IN THE JOURNAL POSTHARVEST BIOLOGY AND TECHNOLOGY BY CALGENE SCIENTIST MATTHEW KRAMER AND OTHERS SAYS THAT CALGENE FOUND DECREASED SOFTNESS IN TOMATOES WHEN ABOUT 99 OF THE ALTERED GENEPOLYGALACTURONASE OR PGIS SHUT OFF BUT THE ARTICLE NOTES SCIENTISTS WORKING WITH RIVAL ICI A FEW YEARS AGO REPORTED NO DIFFERENCE IN TOMATO SOFTNESS USING A SIMILAR ANTISENSE CONSTRUCT THE DIFFERENT FINDINGS STRONGLY SUGGEST THAT PG ACTIVITY IS NOT SOLELY RESPONSIBLE FOR SOFTENING BUT IS INSTEAD REGULATED AS PART OF A MORE COMPLEX PROCESS WHICH OCCURS DURING NORMAL RIPENING THE ARTICLE ADDS AT CALGENE HEADQUARTERS HERE IN CALIFORNIA'S SPRAWLING CENTRAL VALLEY MR SALQUIST SCOFFS AT CRITICS OF THE COMPANY'S TOMATO TECHNOLOGY OUR TESTS SHOW IT HAS A DRAMATIC EFFECT IF THEY CAN'T MAKE IT WORK THAT'S THEIR PROBLEM HE SAYS UNLIKE CAMPBELL HE ADDS WE DON'T HAVE A BRAND IMAGE WE WORRY ABOUT TARNISHING BUT WILLIAM HIATT CALGENE'S TOP TOMATO SCIENTIST IS MORE MODEST HE CONCEDES THAT THE MAJOR EFFECT OF THE COMPANY'S BIOENGINEERING KICKS IN AS THE TOMATO NEARS THE ROTTING STAGE WE AGREE ITS PREDOMINATE EFFECT IS LATE HE SAYS YET HE MAINTAINS THE ALTERED GENE MAKES A SUBTLE STATISTICAL DIFFERENCE DURING THE EARLIER STAGE OF RIPENING A FEW CALGENE RIVALS SAY THEY HAVE NONGENETICALLY ENGINEERED TOMATOES THAT LAST AS LONG AND TASTE AT LEAST AS GOOD AS THE CALGENE FLAVR SAVR SUNWORLD INTERNATIONAL COACHELLA CALIF HAS BEEN SHIPPING ITS DIVINE RIPE TOMATOES DEVELOPED BY SCIENTISTS AT HEBREW UNIVERSITY IN ISRAEL TO MAJOR MARKETS FOR THE PAST FEW YEARS AND DNA PLANT TECHNOLOGY CORP CINNAMINSON NJ PLANS TO BEGIN TESTMARKETING ITS VINERIPENED VINESWEET TOMATO THIS SPRING SOME OUTSPOKEN CRITICS OF BIOTECHNOLOGY NOTABLY AUTHOR AND ANTITECHNOLOGY ACTIVIST JEREMY RIFKIN ARE OUT TO SMASH THE FLAVR SAVR WITH MR RIFKIN'S BACKING MORE THAN 1000 CHEFS AROUND THE COUNTRY HAVE ALREADY REFUSED TO USE THE GENEALTERED TOMATOES IN THEIR RECIPES HIS LOBBYING GROUP THE FOUNDATION ON ECONOMIC TRENDS CRITICIZES THE STREAMLINED APPROVAL PROCESS FOR THE GENEALTERED TOMATO BECAUSE IT FEARS MORE OBJECTIONABLE GENEALTERED FOODS SUCH AS VEGETABLES CONTAINING INSECT ANIMAL OR FISH GENESWILL BE ABLE TO REACH THE MARKETPLACE CALGENE'S DECISION LAST WEEK TO SUBMIT THE GENE AS A FOOD INGREDIENT WAS PARTLY IN RESPONSE TO SUCH CRITICISM SOME CRITICS HAVE ALSO CLAIMED THAT CALGENE'S USE OF AN ANTIBIOTICRESISTANT MARKER GENE TO TRACK ITS REVERSED GENE COULD TRANSFER ANTIBIOTIC RESISTANCE TO TOMATO CONSUMERS NO EVIDENCE HAS BEEN PRESENTED TO SUPPORT THAT CHARGE AND CALGENE SAYS EXTENSIVE FIELD TESTS DEMONSTRATE SUCH FEARS ARE GROUNDLESS FOR THE NEXT FEW YEARS AT LEAST CALGENE'S FINANCIAL HEALTH HINGES ON THE FLAVR SAVR'S SUCCESS THE COMPANY HAS LOST ABOUT 83 MILLION SINCE IT WAS FORMED BY A UNIVERSITY OF CALIFORNIA TOMATO SCIENTIST AND OTHERS IN THE EARLY 1980S IT HAS ALREADY SPENT CLOSE TO 25 MILLION ON TOMATO RESEARCH AND MARKETING AND PLANS TO ISSUE TWO MILLION SHARES IN A FEW WEEKS TO FUND THE ROLLOUT OF THE FLAVR SAVR IF THE FLAVR SAVR SUCCEEDS THE COMPANY HOPES TO POST ITS FIRST PROFIT BY MID1995 IF IT FLOPS MR SALQUIST INSISTS IT'S SIGNIFICANT BUT IT'S NOT THE WHOLE BALL GAME CALGENE IS DEVELOPING GENEALTERED COTTON AS WELL AS CANOLA WHOSE SEEDS ARE CRUSHED TO MAKE VEGETABLE OIL BIOENGINEERED CANOLA HE VOLUNTEERS IS GOING TO BE AT LEAST AS BIG IF NOT BIGGER THAN TOMATOES 9301120073 930112 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE TOURISM INDUSTRY BOUNCED BACK TO NORMAL LAST YEAR FOLLOWING A DISMAL 1991 THE WORLD TOURISM ORGANIZATION SAID THE 109MEMBER AGENCY OF THE UNITED NATIONS DEVELOPMENT PROGRAM ESTIMATED INCREASES OF 68 IN RECEIPTS TO 268 BILLION AND 46 IN ARRIVALS TO 476 MILLION A YEAR EARLIER TOURISM SHRANK AS A RESULT OF THE PERSIAN GULF WAR AND GLOBAL RECESSION DESPITE LAST YEAR'S RESILIENT PERFORMANCE THE ORGANIZATION SAID MANY TRAVEL AND TOURISM COMPANIES WEREN'T PROFITABLE EUROPE REMAINED THE WORLD'S MOST POPULAR DESTINATION THOUGH ARRIVALS DECLINED TO 605 OF THE GLOBAL TOTAL FROM 618 IN 1991 AFRICA HAD THE STRONGEST GROWTH WITH RECEIPTS UP 13 AND ARRIVALS UP 72 AMONG NEW PATTERNS THE AGENCY NOTED TRIPS OF LONGER DISTANCES AND SHORTER STAYS AND AN INCREASE IN TRAVEL TO OTHER REGIONS SUCH AS EUROPEANS VISITING SOUTH ASIA SWEDEN UNVEILED A BUDGET FOR THE YEAR STARTING JULY 1 THAT IS PEGGED TO HIGH HOPES FOR AN EXPORTLED RECOVERY IT PREDICTED ITS WORST RECESSION SINCE WORLD WAR II WILL DEEPEN FURTHER THIS YEAR GROSS NATIONAL PRODUCT WILL FALL 14 FOR THE THIRD DROP IN A ROW UNEMPLOYMENT WILL CLIMB TO RECORD LEVELS AND CONSUMPTION WILL PLUMMET 32 TO THE WEAKEST LEVEL IN DECADES BUT A 15 PLUNGE IN UNITLABOR COSTS THIS YEAR COULD ENABLE THE EXPORT INDUSTRY TO BOOST SALES 5 IN 1993 AND 8 IN 1994 THAT TRICKY SCENARIO HINGES ON AN INTERESTRATE CUT A TIGHT REIN ON BLOATED STATE SPENDING AND MORE INDUSTRY INCENTIVES INFLATIONADJUSTED BUDGET OUTLAYS WOULD FALL 4 TO 5207 BILLION KRONOR 446 BILLION AND THE DEFICIT WOULD NARROW TO 1623 BILLION KRONOR OR 111 OF GNP FROM 138 THIS YEAR SOUTH CHINA'S ECONOMIC BOOM HAS WHETTED APPETITES FOR US FOOD PRODUCTS AND IMPORTERS ARE BYPASSING HONG KONG FOR CONTACTS WITH US EXPORTERS TRADE SPECIALISTS SAID WESTERN FASTFOOD BUSINESSES ARE THRIVING AND SUPERMARKET CHAINS ARE SCRAMBLING TO OPEN OUTLETS INCREASINGLY SOPHISTICATED CONSUMERS ARE DEMANDING MORE CONSUMERREADY CONVENIENCEFOOD PRODUCTS AND IMPORTS ESPECIALLY FROM THE US ARE POPULAR SAID A REPORT IN AGEXPORTER MAGAZINE PUBLISHED BY THE US AGRICULTURE DEPARTMENT'S FOREIGN AGRICULTURAL SERVICE NICARAGUA DEVALUED ITS CORDOBA CURRENCY TO SIX TO THE DOLLAR FROM FIVE IN A BID TO STRENGTHEN PRODUCTION AND EXPORTS BOOST EMPLOYMENT AND PROP UP THE AILING ECONOMY THE MOVE WHICH COULD RAISE PRICES OF BASIC GOODS 7 HAD BEEN SOUGHT BY BUSINESSES MULTINATIONAL LENDERS AND DONOR COUNTRIES INCLUDING THE US LAST YEAR NICARAGUA'S ECONOMIC GROWTH WAS A SLUGGISH 1 NICARAGUA EXPORTED 350 MILLION OF GOODS WHILE ITS IMPORTS TOTALED 800 MILLION THE JOBLESS RATE IS ABOUT 60 BEIJING EXPECTS THE NUMBER OF LAWYERS IN CHINA TO DOUBLE TO 100000 BY THE YEAR 2000 WHICH THE GOVERNMENT HOPES WILL STRENGTHEN THE LEGAL SYSTEM AND EXPEDITE JUDICIAL REFORMS THE INCREASE IS AN INTEGRAL PART OF CHINA'S ECONOMIC MODERNIZATION PROGRAM WHICH HAS PROMPTED A RAPID RISE IN LITIGATION ARBITRATION AND CONTRACT NEGOTIATIONS STRAINING THE COUNTRY'S YOUNG LEGAL SYSTEM LAWYERS WERE ALLOWED TO RESUME PRACTICE IN 1979 THOUSANDS OF SLOVAKS PANICKED ABOUT THE FATE OF THEIR MONEY IN THE NEWLY INDEPENDENT REPUBLIC RUSHED TO BANKS TO DEPOSIT CZECHOSLOVAK CROWNS OR CHANGE THE BANKNOTES INTO WESTERN CURRENCY THEY FEARED THAT THE DEFUNCT CZECHOSLOVAK FEDERATION'S BANKNOTES MAY LOSE VALUE IN RELATION TO A NEW SLOVAK CURRENCY OR BECOME WORTHLESS OR DIFFICULT TO CONVERT ONCE THE CZECH AND SLOVAK REPUBLICS DISCONTINUE THE JOINT CURRENCY THE RUSH CAME AFTER THE CZECH CENTRAL BANK LAST WEEK BEGAN PREPARING FOR A CURRENCY SPLIT MALAYSIA'S INVESTMENT BOOM SLACKENED LAST YEAR AS MORE DEVELOPING COUNTRIES COMPETED FOR SHRINKING FOREIGN CAPITAL INVESTMENT APPLICATIONS BY FOREIGN AND LOCAL MANUFACTURERS FELL 42 TO 863 FROM A YEAR EARLIER AND THE VALUE OF THE PROPOSED OUTLAYS TUMBLED 29 TO 224 BILLION MALAYSIAN DOLLARS US863 BILLION TO STEM A SLIDE IN FOREIGN INVESTMENT THIS YEAR MALAYSIA WILL CONTINUE TO UPGRADE WORKERS' TECHNICAL SKILLS EXPAND INFRASTRUCTURE AND ENCOURAGE RESEARCH AND DEVELOPMENT AND WITH LABOR SHORTAGES AND RISING WAGES THE GOVERNMENT IS FOCUSING ON PROJECTS THAT EMPHASIZE HIGHER LEVELS OF TECHNOLOGY SKILLS AND CAPITAL THAT SHIFT AND THE DIMMED INVESTMENT ALLURE WERE EXPECTED TO RECOVER FROM ITS 198586 RECESSION ITS WORST EVER MALAYSIA RELAXED INVESTMENT CURBS BY 1987 THE ECONOMY BEGAN TO EXPAND RAPIDLY AND UNEMPLOYMENT SHRANK BUT 9 GROWTH FOR SIX YEARS IN A ROW GOBBLED UP MUCH OF THE WORK FORCE AMONG THE 18 MILLION POPULATION BOOSTED WAGES AND INFLATIONARY PRESSURES AND STRAINED THE INFRASTRUCTURE SPAIN INCREASED THE MINIMUM WAGE TO 58530 PESETAS 501 A MONTH BUT THE 4 RISE ONLY MATCHES THE GOVERNMENT'S FORECAST FOR 1993 INFLATION NOW 51 INVESTMENT IN THE PHILIPPINES' EXPORT PROCESSING ZONES LAST YEAR ROSE 26 TO 236 BILLION PESOS 963 MILLION FROM 1991 AND THE NUMBER OF PROJECTS JUMPED 47 TO 78 WITH FOREIGN PARTICIPATION BY AT LEAST 19 GROUPS THE RISE WAS PARTLY ATTRIBUTED TO RELIABLE SERVICES WHEREAS THE REST OF THE COUNTRY HAS ELECTRICITY SHORTAGES 9301120072 930112 CLINTON SEEKS TIMETABLE TO SET HEALTHCARE PLAN LITTLE ROCK ARK PRESIDENTELECT CLINTON LISTENED TO HIS HEALTHCARE ADVISERS FOR MORE THAN TWO HOURS YESTERDAY AS HE SEEKS A TIMETABLE FOR A PLAN AIMED AT SLASHING COSTS AND EXPANDING ACCESS TO MEDICAL CARE NEITHER MR CLINTON NOR HIS ADVISERS COMMENTED AFTER THE SESSION BUT AIDES ACKNOWLEDGED THAT ONE UNANSWERED QUESTION IS WHEN TO FORWARD A PLAN TO CONGRESS AND ANOTHER IS HOW TO PHASE IN INCREASED ACCESS WITH COSTCONTAINMENT MEASURES BUT GEORGE STEPHANOPOULOS THE TRANSITION'S COMMUNICATIONS DIRECTOR ACKNOWLEDGED THAT THE GROWING FEDERAL BUDGET DEFICIT MAKES ENACTING A HEALTHCARE PLAN MORE DIFFICULT NO QUESTION ABOUT IT HE SAID YESTERDAY BUT INSISTED THAT SOMETHING WOULD BE DONE WE HAVE TO MAKE SURE THAT AS WE CAN CONTROL COST WE INCREASE ACCESS HE SAID THE EXACT TIMETABLE OF THAT HOW IT WILL BE DONE HAS NOT YET BEEN FINALLY DECIDED SEPARATELY GENE SPERLING AN ECONOMIC ADVISER FOR THE PRESIDENTELECT SAID THE PLANNING FOR A HEALTHCARE PACKAGE MUST INCLUDE STRATEGIC DECISIONS ON HOW TO RUN IT THROUGH CONGRESS 9301120071 930112 ADVICE FOR RICH IS ALL IN THE FAMILY BY PETER PAE STAFF REPORTER OF THE WALL STREET JOURNAL THEY HAVE THE MONEY TO BUY THE BEST FINANCIAL ADVICE IN THE WORLD YET TO WHOM DO THE WEALTHY TURN FOR INVESTMENT ADVICE THEIR RELATIVES A NEW SURVEY OF THE RICH DUE TO BE RELEASED TODAY CONCLUDES THAT THE TOP 1 OF WAGE EARNERS IN THE US AREN'T MUCH MORE SOPHISTICATED ABOUT THEIR FINANCES THAN THE REST OF THE WORLD DESPITE THE FACT THAT THEY EARN HIGH INCOMES AND/OR HAVE SUBSTANTIAL NET WORTH MOST AFFLUENT INDIVIDUALS DO NOT CONSIDER THEMSELVES PARTICULARLY ADEPT AT MANAGING THEIR FINANCIAL AFFAIRS NOTES THE SURVEY WHICH WAS CONDUCTED BY US TRUST CO A NEW YORKBASED ASSET MANAGEMENT AND PRIVATE BANKING FIRM THE SURVEY CONDUCTED IN NOVEMBER 1992 INTERVIEWED 150 INDIVIDUALS WHO EARNED AT LEAST 200000 A YEAR AND HAD A NET WORTH ASSETS MINUS LIABILITIES OF 3 MILLION THE SURVEY QUERIED WEALTHY INDIVIDUALS ABOUT THEIR FINANCIAL CONCERNS USE OF FINANCIAL ADVISERS AND EXPECTATIONS ABOUT THEIR INVESTMENT RETURNS DESPITE THEIR ACKNOWLEDGED LACK OF CONFIDENCE IN THEIR OWN FINANCIAL ACUMEN THE WEALTHY DON'T HAVE A GREAT DEAL OF USE FOR PROFESSIONAL ADVISERS WHILE 60 RATED A RELATIVE'S ADVICE AS VERY IMPORTANT FEWER THAN HALF THOSE SURVEYED SAID THEY USE FINANCIAL PLANNERS OR PRIVATE BANKERS AND ONLY 1 IN 5 SAID THEY LOOK TO RETIREMENTPLAN COUNSELORS OR ASSET MANAGERS FOR ADVICE GIVEN THEIR LACK OF FINANCIAL EXPERTISE AND CONFIDENCE IT MIGHT BE EXPECTED THAT AFFLUENTS WOULD HAVE ESTABLISHED RELATIONSHIPS WITH AN ARRAY OF PROFESSIONAL ADVISERS THE SURVEY STATES THIS IS ONLY PARTIALLY TRUE AND EVEN WHEN AN AFFLUENT INDIVIDUAL DID TURN TO SOMEONE OUTSIDE THE FAMILY FOR FINANCIAL ADVICE ATTORNEYS TOPPED THE LIST OF ADVISERS MOST FREQUENTLY USED FOR FINANCIAL MATTERS WHATEVER THE SOURCE OF THEIR ADVICE THE WEALTHY ARE PLANNING TO GET WEALTHIER MORE THAN 60 OF THE RESPONDENTS EXPECT VERY FAVORABLE OR FAVORABLE RETURNS FROM THEIR INVESTMENTS IN THE NEXT TWO YEARS AVERAGING ABOUT 13 FOR STOCKS AND 102 FOR BONDS THEIR CHIEF FEARS ABOUT 80 ARE WORRIED ABOUT THE FINANCIAL DIFFICULTIES THAT WILL FACE THEIR OFFSPRING IN COMING YEARS WHILE 76 FRET ABOUT RISING TAXES ONE THING THEY DON'T WORRY ABOUT IS HAVING ENOUGH LIFE INSURANCE THE SURVEY COMES AMIDST INCREASING EFFORTS BY FINANCIAL ADVISERS TO WREST MORE MONEY FROM THE WALLETS OF THE WEALTHY BY CREATING NEW PRODUCTS AND SERVICES AFFLUENT CUSTOMERS TYPICALLY GENERATE 80 OF THE REVENUES WHILE COMPRISING ONLY 20 OF INDIVIDUAL INVESTOR ACCOUNTS THE SURVEY RESULTS PRESENT OPPORTUNITIES FOR US SAID JEFFREY MAURER PRESIDENT OF US TRUST NOT SURPRISINGLY THE SURVEY DOESN'T DELVE INTO THE FEE STRUCTURES OF PROFESSIONAL ADVISERS VS RELATIVES 9301120070 930112 CREDIT RATINGS ALLIEDSIGNAL INC MORRISTOWN NJ MOODY'S INVESTORS SERVICE INC UPGRADED THE AEROSPACE AND AUTOMOTIVE PRODUCTS MANUFACTURER'S DEBT CITING ITS RESTRUCTURING PROGRAMS ABOUT 2 BILLION OF LONGTERM DEBT IS AFFECTED AMONG THE ISSUES UPGRADED WAS THE SENIOR DEBT OF ALLIEDSIGNAL INC AND THE ALLIED CORP AND SIGNAL COS SUBSIDIARIES TO SINGLEA2 FROM SINGLEA3 MOODY'S SAID IT EXPECTS THE COMPANY'S RESTRUCTURING WILL LEAD TO IMPROVED PROFITABILITY AND CASH FLOW IN SPITE OF CONTINUED WEAKNESS IN CERTAIN KEY MARKETS THE RATING CONCERN SAID THE COMPANY HAS SHIFTED FROM BEING A NET CASH USER TO A NET CASH GENERATOR IT SAID THE RECENT SALE OF THE COMPANY'S 39 STAKE IN UNION TEXAS PETROLEUM HOLDINGS INC FOR ABOUT 1 BILLION IMPROVED ITS BALANCE SHEET AND LIQUIDITY 9301120069 930112 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 30 1992 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9301120068 930112 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN BUSINESSES ARE OPTIMISTIC ABOUT ROBERT REICH BUT WORRY ABOUT COSTS JEROME CHAZEN CHAIRMAN OF LIZ CLAIBORNE INC BACKS THE LABOR SECRETARYDESIGNATE'S DESIRE FOR HIGHPAYING JOBS AMERICANS DON'T RAISE THEIR CHILDREN TO SIT BEHIND SEWING MACHINES ALL DAY HE SAYS A BRIDGESTONE/FIRESTONE INC SPOKESMAN ECHOES MR REICH'S VIEW THAT IT IS NOT IMPORTANT WHICH COUNTRY'S FLAG A COMPANY IS FLYING PROVIDING THAT COMPANY IS TURNING OUT SKILLED CREATIVE AND PRODUCTIVE WORKERS IN THE US BUT PAUL POLISHAN LESLIE FAY COS FINANCE CHIEF SAYS MR REICH SHOULD FOCUS ON WAYS TO STIMULATE NOT BURDEN INDUSTRY AN INCREASED MINIMUM WAGE WOULD HURT HE SAYS MONSANTO CO FEARS GREATER REGULATION AND HOPES ITS VOLUNTARY INITIATIVES ON FAMILY LEAVE AND EMPLOYEE TRAINING WILL STAVE OFF ADDITIONAL MANDATED CHANGES HARRY CONAWAY WHO RUNS CONSULTANT WILLIAM MERCER SEES CAPITOL HILL AS THE BIGGER WORRY FOR BUSINESS THERE IS A LOT OF PENTUP DEMAND IN CONGRESS THE OUTLOOK APPEARS MIXED FOR HEALTHCARE HIRING INDUSTRY EMPLOYMENT JUMPED 41 ANNUALLY IN THE 1980S PROVIDING ONE OF EVERY SIX JOBS CREATED PRIME MEDICAL SERVICES OF AUSTIN TEXAS PLANS DOUBLEDIGIT HIRING INCREASES HORIZON HEALTHCARE ALBUQUERQUE NM WILL RECRUIT PHYSICAL THERAPISTS MEDIPLEX GROUP FIGURES TO ADD 1000 EMPLOYEES OFF FROM 1700 LAST YEAR AS LONG AS AMERICANS HAVE LOUSY HEALTH HABITS SAYS LOUIS MAUTONE OF HELIAN HEALTH GROUP MONTERREY CALIF THIS IS A GROWTH INDUSTRY OVERALL HOSPITAL EMPLOYMENT PROBABLY WON'T GROW AT THE SAME RATE AS SPECIALTY FACILITIES THE MASSACHUSETTS HOSPITAL ASSOCIATION EXPECTS TOTAL HOSPITAL EMPLOYMENT FOR 1993 TO INCH UP LESS THAN 2 TECHNOLOGICAL ADVANCES ALSO SLOW SOME HIRING HILLHAVEN OF TACOMA WASH PLANS TRIMMING IN SOME AREAS DUE TO PRODUCTIVITY GAINS THE PLATE IS FULL ON CAPITOL HILL THE FAMILY AND MEDICALLEAVE BILL WAS THE FIRST BILL TO BE INTRODUCED IN THE HOUSE THIS YEAR AND IS A SHOOIN TO PASS BOTH CHAMBERS POSSIBLY IN EARLY FEBRUARY TINKERING IS EXPECTED IN THE SENATE BUT THE VERSION THAT EMERGES FROM CONGRESS IS LIKELY TO BE A NEAR CARBONCOPY OF THE BILL PRESIDENT BUSH VETOED CLINTON HAS VOWED TO SIGN IT OTHER MEASURES ARE IN THE WINGS A BILL REVAMPING OSHA WILL GET SIGNIFICANT ATTENTION AS DEMOCRATS AND UNIONS WANT WORKERS TO HAVE MORE INPUT INTO COMPANY SAFETY RULES JOBTRAINING PROGRAMS ALSO WILL BE A FOCUS BUT PROBABLY WILL AWAIT A REVIEW OF THE LABOR DEPARTMENT'S MUDDLE OF 125 PROGRAMS A BILL TO BAN PERMANENT STRIKER REPLACEMENT GETS STRONG UNION BACKING BUT FACES PRESSURE FROM SENATE REPUBLICANS REPUBLICANS TURN THEIR SIGHTS TO REDUCING WASTE IN TRAINING PROGRAMS AND MAKING SURE WORKERMANAGER TEAMS STAY LEGAL GOING IT ALONE THE 2500 RETIREES OF DEFUNCT UNIROYAL PLASTICS INC OF INDIANA WILL DIRECT THEIR OWN HEALTHINSURANCE PLAN THE AGREEMENT TO STAY IN PLACE UNTIL NO RETIREES REMAIN WILL BE MANAGED BY A BOARD THAT AROSE FROM THE BANKRUPTCY PROCEEDINGS LOCAL HOSPITALS HAVE AGREED TO TAKE MEDICARE RATES SAYS RANDALL LIGHT OF CONSULTANT CROWE CHISEK WHICH HELPED CREATE THE PLAN OOPS NEVER MIND THE CLINTON/GORE INAUGURAL PARADE COMMITTEE ASKS ASSOCIATED BUILDERS AND CONTRACTORS TO PROVIDE CONSTRUCTION WORKERS TO RIDE ON A FLOAT DEPICTING A HOME BEING BUILT BUT THE COMMITTEE RESCINDS THE OFFER TWO DAYS LATER WHEN IT FINDS OUT THE OPEN SHOP GROUP ISN'T SOLELY MADE UP OF UNION WORKERS UNIONS FUME OVER BUSH'S LASTMINUTE NAMING OF GREGORY WALDEN TO THE INTERSTATE COMMERCE COMMISSION MR WALDEN WHO FILLS A VACANT SEAT IS A COUNSEL TO THE PRESIDENT WALTER SHEA PRESIDENT OF THE TRANSPORTATION TRADES DEPARTMENT CALLS THE MOVE UNBECOMING OF AN OUTGOING ADMINISTRATION AND ASKS CLINTON TO REPLACE MR WALDEN THE TEAMSTERS' CAMPAIGN AGAINST DIAMOND WALNUT GROWS THE 16MONTHOLD WALKOUT AGAINST THE NATION'S BIGGEST WALNUT COOPERATIVE GAINS SUPPORT WHEN ARCHIBALD CANDY CORP OWNER OF FANNIE MAY AND FANNY FARMER AGREES NOT TO BUY NUTS FROM THE COMPANY THIS YEAR WE'RE TRYING TO KEEP ON GOOD TERMS WITH THE UNION SAYS PURCHASING DIRECTOR RANDOLPH SCHMIDT WE'LL TRY TO BUY WALNUTS FROM OTHER SOURCES UNTIL THE DISPUTE IS RESOLVED UNION MEMBERS ANGERED BY THE STOCKTON CALIF COMPANY'S WAGE AND BENEFITS CUTS ISSUE COOKING WITHOUT WALNUTS FEATURING PECANS AND ALMONDS AS THE NUTS OF CHOICE THE UNION PICKETS HOLIDAY PERFORMANCES OF THE NUTCRACKER AND THE DEBATE TURNS SERIOUS WHEN TEAMSTERS OFFICIALS TALK ABOUT THE USE OF METHYL BROMIDE WHICH THEY SAY IS HIGHLY TOXIC TO FUMIGATE THE NUTS NATURALLY WHAT THEY'RE LOOKING FOR IS MEDIA INTEREST SAYS DIAMOND WALNUT SPOKESWOMAN SANDRA MCBRIDE THAT'S WHAT THIS IS ALL ABOUT THE CHECKOFF THE QUEENS LIBRARY IN NEW YORK OFFERS A WORKSHOP ON US LABORLAW PROTECTIONS IN MANDARIN CHINESE MEETINGS TAKE UP AS MUCH AS 60 OF THE AVERAGE MANAGER'S DAY ACCORDING TO GOODRICH & SHERWOOD WHICH ADVISES AGAINST COMFORTABLE CHAIRS WITH COFFEE AND DANISH NOW HE KNOWS HOW IT ENDS SEN DAN COATS TELLS LABOR SECRETARYDESIGNATE REICH THAT HE SKIPPED THE FIRST 19 CHAPTERS OF HIS NEW BOOK AND READ NO 20 TITLED RESTATING THE PROBLEM 9301120067 930112 ENTERPRISE WASHINGTON UPDATE SMALL FIRMS AWAIT CLINTON WITH BOTH WORRY OPTIMISM BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL SMALLBUSINESS WORRIES MOUNT ABOUT TOUGHER ENFORCEMENT BY CLINTON REGULATORS THE AMERICANS WITH DISABILITIES ACT IS ANOTHER CONCERN AMONG SMALL BUSINESSES IN ITS FIRST SUIT UNDER THE NEW LAW THE BUSH ADMINISTRATION SUED A SMALL TRAINING FIRM IN ENCINO CALIF FOR FAILING TO PROVIDE SIGN LANGUAGE INTERPRETERS FOR THOSE TAKING ITS COURSES IN PREPARATION FOR A NATIONAL ACCOUNTING EXAM MOST LEGAL ACTIONS UNDER THE SOCALLED ADA ARE LIKELY TO COME FROM INDIVIDUALS CLAIMING EMPLOYMENT BIAS SAYS GLENN NAGER A WASHINGTON EMPLOYMENT LAWYER BUT THE CLINTON WHITE HOUSE WILL HAVE STRONG IMPACT IN TERMS OF ITS APPOINTMENTS TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION AND THE COMMISSION RULES THAT IT APPROVES HE ADDS MURRAY WEIDENBAUM DIRECTOR OF THE CENTER FOR THE STUDY OF AMERICAN BUSINESS AT SAINT LOUIS UNIVERSITY SAYS THAT PRESIDENTELECT CLINTON'S FOCUS ON TAX BREAKS AND INCREASED CREDIT FOR SMALL BUSINESS COULD BE MORE THAN OFFSET BY THE COST OF COMPLYING WITH FEDERAL LEGISLATION MR WEIDENBAUM A COUNCIL OF ECONOMIC ADVISERS CHAIRMAN DURING PART OF THE REAGAN ADMINISTRATION NOTES THAT QUICK CONGRESSIONAL PASSAGE IS EXPECTED OF SEVERAL REGULATORY BILLS BACKED BY DEMOCRATS THE LIST INCLUDES CHANGES IN THE CLEAN WATER SOLID WASTE AND TOXIC CLEANUP LAWS ALONG WITH AN OVERHAUL OF THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION AT HER SENATE CONFIRMATION HEARING YESTERDAY CAROL BROWNER THE PRESIDENTELECT'S NOMINEE TO HEAD THE ENVIRONMENTAL PROTECTION AGENCY CALLED FOR A NEW ERA OF COOPERATION BETWEEN THE EPA AND BUSINESSES AND SPECIAL ATTENTION TO SMALLBUSINESS PROBLEMS CLINTONITES COUNT ON A FEW GOOD ENTREPRENEURS FOR INAUGURAL FUNDS IN THE PAST INAUGURAL COMMITTEES SIGNED SEPARATE CONTRACTS OR LICENSING AGREEMENTS WITH EVERY BUSINESS THAT PROVIDED A SERVICE OR SOUVENIR THE CLINTON PRESIDENTIAL INAUGURAL COMMITTEE INSTEAD SOUGHT OUT EXPERTS IN SEVERAL SPECIFIC FIELDS AND ISSUED LICENSES FOR ENTIRE CATEGORIES SUCH AS RETAIL SALES SAYS ERNIE JOHNSTON THE COMMITTEE'S MARKETING DIRECTOR HE SAYS THE COMMITTEE WILL RECEIVE A ROYALTY FEE WELL ABOVE SUCH AGREEMENTS' USUAL 10 THE FEES WILL HELP TO FINANCE INAUGURAL EVENTS INAUGURAL COMMEMORATIVES INC A SMALL NEW YORK COMPANY BECAME THE COMMITTEE'S SOLE LICENSEE FOR RETAIL SALES SO FAR ITS LICENSE COVERS FOUR STORES IN THE WASHINGTON AREA PLUS CATALOG SALES DIRECT MAIL AND INAUGURALWEEK SALES FROM KIOSKS AROUND THE CITY THIS IS THE FIRST TIME THAT A PRESIDENTIAL INAUGURATION HAS FEATURED RETAIL OUTLETS FOR COMMEMORATIVE ITEMS PAUL STORCH THE FIRM'S PRESIDENT SET UP A CLINTONGORE STORE IN LITTLE ROCK ARK DURING THE CAMPAIGN TO SELL PROMOTIONAL ITEMS HE WON THE INAUGURATION CONTRACT AFTER COMPETING AGAINST FIVE OTHER BIDDERS THE INAUGURAL COMMITTEE DIRECTED OTHER SMALL CONCERNS SUCH AS SOUVENIR MANUFACTURERS TO SELL THROUGH THE RETAIL LICENSEE ABOUT 100 SMALL COMPANIES AND FIVE LARGE ONES PRESENTLY ARE HAWKING ITEMS THROUGH THE INAUGURAL COMMEMORATIVES STORES THE FIRST RETAIL OUTLET IN DOWNTOWN WASHINGTON OPENED FOR BUSINESS DEC 21 AND SOLD ABOUT 350000 IN MERCHANDISE IN 11 DAYS MR JOHNSTON SAYS SBA FUNDING FOR ITS LOANGUARANTEE PROGRAM AGAIN WILL RUN OUT SOON SMALL BUSINESS ADMINISTRATION OFFICIALS SAY THAT FUNDS FOR THE FISCAL SECOND QUARTER THAT BEGAN JAN 1 WILL RUN OUT BY THE END OF THE PERIOD'S FIRST MONTH AS THEY DID IN THE FIRST FISCAL QUARTER AT A RECENT BOARD MEETING THE NATIONAL ASSOCIATION OF GOVERNMENT GUARANTEED LENDERS SAID DEMAND FOR THESE LOANS IS RUNNING 37 AHEAD OF YEAREARLIER LEVELS THE ASSOCIATION AND OTHER SMALLBUSINESS GROUPS HAVE ASKED PRESIDENTELECT CLINTON TO SEEK EXTRA FUNDING FOR THE LOANGUARANTEE PROGRAM AS SOON AS HE IS INAUGURATED NOW THEY FEAR THAT HE MAY FACE TOO MANY OTHER CRISES TO DO SO IN THE SAN FRANCISCO REGION IT'S STARTING TO LOOK AS IF YOU WON'T BE ABLE TO GET A LOAN APPROVED UNTIL APRIL UNLESS YOU SUBMIT THE PAPERWORK TO THE SBA THIS WEEK SAYS JANINE PERRIGNON HEAD OF SMALLBUSINESS LENDING FOR SAN FRANCISCO'S COMMERCIAL BANK NEW INDICATIONS OF BUSINESS OWNERS' CAUTIOUS OPTIMISM MARK CLINTON'S INAUGURATION A SURVEY OF 35000 MEMBERS OF THE SMALL BUSINESS SERVICES BUREAU BASED IN WORCESTER MASS SHOWS THAT 12 OF THOSE ENTREPRENEURS PLAN STAFF INCREASES DURING THE FIRST HALF UP FROM 10 A YEAR EARLIER AND 20 EXPECT THEIR COMPANY'S PURCHASING TO INCREASE UP FROM 16 A YEAR EARLIER THE MOST ENCOURAGING ECONOMIC SIGN FOR AZON USA INC IN KALAMAZOO MICH WAS 250000 IN ORDERS DURING THIS MONTH'S FIRST WEEK HISTORICALLY A SLOW PERIOD INCREASED CONSUMER CONFIDENCE SINCE THE ELECTION IS HELPING THE RECOVERY SAYS JAMES DUNSTAND CHIEF EXECUTIVE OF THE CONCERN WHICH MAKES SEALING MATERIALS AND OTHER PRODUCTS FOR ALUMINUM WINDOWS THE BUSH ADMINISTRATION JUST DIDN'T READ IT THE ECONOMY RIGHT MR DUNSTAND CONTINUES ROGER HANNAY PRESIDENT OF HANNAY REELS A WESTERLO NY FIRM THAT MAKES INDUSTRIAL REELS TO REWIND CABLES SAYS ITS ORDERS ARE UP ABOUT 7 THIS MONTH COMPARED WITH THE SAME PERIOD LAST YEAR I'M GUARDEDLY OPTIMISTIC MR HANNY SAYS AT LEAST THINGS HAVE STOPPED GETTING WORSE BUT THE WASHINGTONBASED AMERICAN BUSINESS CONFERENCE WHICH REPRESENTS HIGHGROWTH MIDSIZED CONCERNS SAYS THAT ITS MEMBERS EXPECT A FRAGILE ECONOMIC RECOVERY THIS QUARTER ONLY 9 OF 54 MEMBERS ANSWERING A CONFERENCE SURVEY SAID THEY'LL EXPAND EMPLOYMENT DURING THE CURRENT QUARTER AND ONLY 17 EXPECT TO IMPROVE THEIR PROFIT MARGINS LARGER PROFITS AND GREATER EMPLOYMENT IS WHAT A STRONG RECOVERY IS ALL ABOUT SAYS BARRY ROGSTAD THE TRADE GROUP'S PRESIDENT SMALL TALK SMALL FIRMS WITH UNIVERSITY RESEARCHANDDEVELOPMENT CONTRACTS ENJOYED A 44 RATE OF RETURN ON THEIR RESEARCH DOLLARS COMPARED WITH A 30 RATE AMONG LARGE COMPANIES CONCLUDES A STUDY SPONSORED BY THE SBA'S ADVOCACY OFFICE OUTGOING SBA CHIEF PATRICIA SAIKI WILL BEGIN A SEMESTERLONG TEACHING FELLOWSHIP FEB 1 AT JOHN F KENNEDY SCHOOL OF GOVERNMENT'S INSTITUTE OF POLITICS AT HARVARD 9301120066 930112 TECHNOLOGY IBMAPPLE OPERATING SYSTEM TALIGENT IS AHEAD OF SCHEDULE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL THE JOINT VENTURE BETWEEN INTERNATIONAL BUSINESS MACHINES CO AND APPLE COMPUTER INC WHICH AIMS TO CHALLENGE MICROSOFT CORP FOR LEADERSHIP IN COMPUTER OPERATING SYSTEMS IS AHEAD OF SCHEDULE AND VYING AGGRESSIVELY FOR THE ALLEGIANCE OF LEADING APPLICATIONS MAKERS THE IBMAPPLE JOINT VENTURE CALLED TALIGENT INC NOW EXPECTS TO DELIVER ITS FIRST OPERATING SYSTEM NEXT YEAR WHEN IT WAS FORMED NINE MONTHS AGO AS THE CORNERSTONE OF A WIDERANGING ALLIANCE BETWEEN APPLE AND IBM TALIGENT PREDICTED DELIVERY IN 1995 WE'VE GOT A SUBSTANTIAL AMOUNT OF THE PRODUCT BUILT SAID JOSEPH GUGLIELMI TALIGENT'S CHIEF EXECUTIVE OFFICER TALIGENT WHICH IS BASED IN APPLE'S HOME TURF OF CUPERTINO CALIF IS ATTEMPTING TO CHANGE THE RULES IN DESKTOP COMPUTING BY TRANSFORMING OPERATING SOFTWARE WHICH CONTROLS THE BASIC FUNCTIONS OF A PERSONAL COMPUTER OPERATING SOFTWARE DETERMINES THE LOOK AND FEEL OF VARIOUS APPLICATIONS AND AT LEAST TODAY CAN RUN ON ONLY ONE TYPE OF COMPUTER HARDWARE MICROSOFT'S STANDARD DOS OPERATING SOFTWARE RUNS ONLY ON COMPUTERS BUILT AROUND INTEL CORP MICROPROCESSORS WHILE APPLE'S MACINTOSH SOFTWARE RUNS ONLY ON MOTOROLA INC'S CHIPS APPLE AND IBM THE WORLD'S TWO LARGEST SUPPLIERS OF PERSONAL COMPUTERS HAVE PLEDGED THAT TALIGENT WILL RUN ON A VARIETY OF COMPUTERS INCLUDING THEIR OWN THEY SAY TALIGENT'S OPERATING SYSTEM WILL RUN APPLICATIONS ORIGINALLY WRITTEN FOR APPLE'S MACINTOSH OR IBM'S OS/2 AS WELL AS APPLICATIONS DEVELOPED IN THE FUTURE THAT AUTOMATE COMMON TASKS THIS CAPACITY TO RUN DIVERSE PROGRAMS COMES FROM A NEW APPROACH TO BUILDING SOFTWARE WHICH ASSEMBLES PROGRAMS OUT OF OBJECTS OR MODULES OBJECTORIENTED PROGRAMMING PROMISES TO MAKE IT EASIER TO COMPLETE AND MODIFY PROGRAMS AS WELL AS INCREASE THEIR POWER TALIGENT ISN'T STARTING FROM SCRATCH BUT RELYING FOR ITS CORE CODE ON A FORMER APPLE PROJECT CODENAMED PINK IN RECENT MONTHS THE COMPANY HAS SHOWN OFF THE LATEST VERSIONS OF THIS CODE TO OUTSIDE DEVELOPERS IN A SERIES OF SECRET MEETINGS DUBBED PINK MANIAS IT NOW HAS 260 EMPLOYEES UP FROM 170 AT ITS START OUTSIDERS MANY OF WHOM WERE SKEPTICAL THAT IBM AND APPLE COULD WORK TOGETHER ARE IMPRESSED TECHNICALLY PINK IS BRILLIANT AND TALIGENT IS RUNNING MUCH FASTER THAN I EXPECTED SAID PHILIPPE KAHN CHIEF EXECUTIVE OFFICER OF BORLAND INTERNATIONAL INC A SOFTWARE MAKER INSTEAD OF BEING BOGGED DOWN BY THE BUREAUCRACIES OF ITS TWO LARGE PARENTS TALIGENT SEEMS TO HAVE TAKEN THE BEST OF EACH COMPANY SAID MR KAHN A FREQUENT CRITIC OF MICROSOFT WHO IS RESPECTED FOR HIS TECHNICAL JUDGMENT SEVERAL LEADING APPLICATIONS SUPPLIERS INCLUDING WORDPERFECT CORP HAVE AGREED TO WRITE PROGRAMS FOR TALIGENT'S OPERATING SYSTEM WE'RE HOPING TALIGENT IS GOING TO BE VERY SUCCESSFUL SAID ALAN ASHTON WORDPERFECT'S CHIEF EXECUTIVE NETWORKING LEADER NOVELL INC ALSO HAS AGREED TO BUILD PRODUCTS AROUND TALIGENT WE'RE WORKING CLOSELY WITH THEM SAID JONATHON EDWARDS VICE PRESIDENT OF NOVELL'S DESKTOP SOFTWARE GROUP MICROSOFT THE WORLD'S LARGEST SOFTWARE SUPPLIER HAS ITS OWN OBJECTORIENTED OPERATING SYSTEM UNDER DEVELOPMENT CODENAMED CAIRO AS WELL AS AN ADVANCED VERSION OF ITS WINDOWS PROGRAM CALLED NT WINDOWS NT AND CAIRO CAN BE EXPECTED TO ATTRACT MANY APPLICATIONS BUT INDUSTRY OBSERVERS THINK THAT THERE IS ROOM FOR TALIGENT AND THAT APPLE'S ASSOCIATION WITH THE PROJECT WILL GIVE IT CACHET AMONG SOFTWARE DEVELOPERS MANY OF WHOM REVERE THE MACINTOSH SYSTEM DESPITE THE SUCCESS OF MICROSOFT'S DOSWINDOWS STANDARD THERE IS STILL A VERY STRONG CULTURE AMONG APPLE DEVELOPERS TO WRITE FOR NEW OPERATING SYSTEMS SAID ANN WINBLAD A VENTURE CAPITALIST IN EMERYVILLE CALIF WHO INVESTS SOLELY IN SOFTWARE COMPANIES AND IS A SUPPORTER OF MICROSOFT CHAIRMAN WILLIAM H GATES SOFTWARE ENTREPRENEURS ALSO MAY TRY TO PIGGYBACK ON TALIGENT'S OPERATING SYSTEM NEW SOFTWARE COMPANIES LOVE THIS SORT OF THING BECAUSE THE OLD GUYS HAVE TO WORRY ABOUT PROTECTING THEIR EXISTING BUSINESS MS WINBLAD SAID PEOPLE FAMILIAR WITH THE INNER WORKINGS OF TALIGENT SAY THE COMPANY HAS FOUND IT RELATIVELY PAINLESS TO MESH THE DIFFERENT IBM AND APPLE CULTURES LARGELY BECAUSE OF THEIR COMMON RIVALRY WITH MICROSOFT BUT TALIGENT IS STILL STRUGGLING WITH EXPECTATIONS THAT THE COMPANY MUST WOUND MICROSOFT TO SUCCEED AND THE REALITY THAT GAINING A FOOTHOLD IN THE INTENSELY COMPETITIVE MARKET FOR OPERATING SYSTEMS WILL REQUIRE A MANYFACETED ATTACK MR GUGLIELMI A VETERAN OF IBM WHO WAS FORMERLY INVOLVED IN THE COMPANY'S DIFFICULT CAMPAIGN TO PUSH THE OS/2 OPERATING SYSTEM INDICATED THAT TALIGENT MIGHT LEAN TOWARD MORE MODEST GOALS AT LEAST INITIALLY WE DON'T INTEND TO DELIVER EVERYTHING IN ONE FELL SWOOP HE SAID WE INTEND TO PACKAGE THE PRODUCT IN BITESIZE CHUNKS THAT MAKE SENSE FOR PARTICULAR CLASSES OF CUSTOMERS 9301120065 930112 CHRYSLER TO SELL SHARES VALUED AT 146 BILLION ISSUE TO HELP BALANCE SHEET PROMPTS TWO AGENCIES TO RAISE DEBT RATING BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH MOVING TO CASH IN ON ITS HIGHFLYING STOCK CHRYSLER CORP SAID IT WILL SELL 40 MILLION NEW COMMON SHARES WHICH WOULD RAISE ABOUT 146 BILLION TO BOLSTER ITS SHAKY BALANCE SHEET IN A RELATED MOVE MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP UPGRADED CHRYSLER'S DEBT RATING BOTH FIRMS CITED THE EQUITY ISSUE AS WELL AS CHRYSLER'S LINE OF PROFITABLE NEW PRODUCTS IN THEIR DECISIONS DESPITE THE UPGRADES BOTH SERVICES CONTINUE TO RATE CHRYSLER DEBT BELOW INVESTMENT GRADE THIS IS THE SECOND TIME IN LESS THAN 18 MONTHS THAT CHRYSLER HAS SOLD NEW COMMON SHARES CHRYSLER STOCK WAS QUOTED AT 3625 UP 25 CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CHRYSLER'S SHARE PRICE HAS MORE THAN TRIPLED FROM LAST YEAR'S LOW OF 1150 CHRYSLER STOCK SHOT UP 10 LAST WEEK AFTER SEVERAL ANALYSTS REVISED THEIR 1993 EARNINGS ESTIMATES UPWARD THE LAST TIME CHRYSLER OFFERED NEW COMMON SHARES IN AUGUST 1991 IT SOLD THEM AT 10125 A SHARE CHRYSLER NOW HAS 2958 MILLION COMMON SHARES OUTSTANDING THE BEST TIME TO ASK PEOPLE FOR MORE MONEY IS WHEN THEY LIKE YOU SAID JOHN CASESA WITH WERTHEIM SCHRODER & CO RIGHT NOW THE MARKET FEELS CHRYSLER CAN DO NO WRONG MR CASESA CREDITED THE AUTO MAKER WITH ADROITLY PLAYING INVESTOR PSYCHOLOGY CHRYSLER WILL USE AT LEAST HALF THE FUNDS RAISED BY THE STOCK SALE TO BEEF UP ITS PENSION FUND THE COMPANY SAID IN A SECURITIES AND EXCHANGE COMMISSION REGISTRATION STATEMENT IT FILED YESTERDAY CHRYSLER'S 44 BILLION UNFUNDED PENSION LIABILITY HAS BEEN REDUCED TO 39 BILLION THROUGH COMPANY CONTRIBUTIONS AND RETURNS ON INVESTMENT ACCORDING TO THE STATEMENT AT THE CURRENT PRICE THE EQUITY ISSUE WOULD RAISE ABOUT 146 BILLION FOR CHRYSLER WHICH IT SORELY NEEDS TO PAY DOWN THE REMAINING LIABILITY IN ADDITION THE COMPANY MAY USE SOME OF THE PROCEEDS TO FUND A 175 BILLION CAPITAL INVESTMENT PLAN THROUGH 1997 AND PAY DOWN 38 BILLION DEBT OF ITS CARMAKING OPERATIONS BUT ALL OF THE MONEY COULD END UP GOING TO THE PENSION FUND DEPENDING UPON PREVAILING ECONOMIC CONDITIONS AND CHRYSLER'S FINANCIAL OUTLOOK CHRYSLER MAY CONTRIBUTE ALL THE NEW EQUITY TO ITS PENSION FUND THE REGISTRATION STATEMENT SAYS AND AN INDIVIDUAL INVOLVED IN THE PROPOSAL TO ISSUE SHARES SAYS THAT MAY VERY WELL BE THE CASE IT LOOKS GOOD HE SAID IN ITS STATEMENT STANDARD & POOR'S SAID CHRYSLER INTENDS TO ACHIEVE INVESTMENTGRADE RATINGS BY PAYING DOWN ITS PENSION LIABILITY AND BY ACCUMULATING A LARGE CASH POSITION THE DECISION TO ISSUE NEW STOCK COMES AT THE CREST OF A WAVE OF GOOD NEWS FOR THE NO 3 US AUTO MAKER WHICH JUST TWO YEARS AGO WAS ONE OF INDUSTRIAL AMERICA'S WALKING WOUNDED BECAUSE OF ONGOING COSTCUTTING EFFORTS CHRYSLER LOWERED ITS BREAKEVEN POINT TO THE SALE OF ABOUT 17 MILLION VEHICLES IN 1992 DOWN FROM 19 MILLION IN 1991 THE AUTO MAKER SAID IN ITS REGISTRATION STATEMENT LAST WEEK CHRYSLER UNVEILED ITS NEW FULLSIZED PICKUP WHICH HAS BEEN WELL RECEIVED BY AUTOMOTIVE CRITICS AND GOES INTO PRODUCTION LATER THIS YEAR IN ADDITION INITIAL SALES OF CHRYSLER'S TRIO OF NEW LH MIDSIZE SEDANS THE CHRYSLER CONCORDE DODGE INTREPID AND EAGLE VISION HAVE BEEN STRONG ENOUGH THAT CHRYSLER SAID RECENTLY IT WILL EXPAND PRODUCTION TO A NEWARK DEL PLANT CHRYSLER'S COMPETITIVE POSITION IS IMPROVING SIGNIFICANTLY AS A RESULT OF SUCCESSFUL NEW PRODUCTS AND ITS EXTENSIVE ONGOING COSTCUTTING INITIATIVES S&P SAID 9301120063 930112 CARDIACCARE UNIT AID FOR RACING HEARTS COULD ALSO BE A BOON TO A PACEMAKER FIRM MISSTEPS FALSE STARTS MARKED MEDTRONIC'S LONG ROAD TO A REFINED SHOCK BOX' THE TALE OF A MEDICAL PIONEER BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS ANY DAY NOW THE FOOD AND DRUG ADMINISTRATION IS EXPECTED TO APPROVE A MEDICAL DEVICE THAT COULD QUELL THOUSANDS OF LIFETHREATENING CARDIAC EPISODES AND MAKE MILLIONS OF DOLLARS FOR THE DEVICE'S MANUFACTURER YET THAT COMPANY MINNEAPOLISBASED MEDTRONIC INC ONCE GAVE UP ON THE IDEA OF THE DEVICE IT EVEN TOLD THE PIONEERING INVENTOR IN THE FIELD AN ISRAELI CARDIOLOGIST NAMED MICHEL MIROWSKI TO TAKE A HIKE THE STORY OF HOW MEDTRONIC WENT FROM THERE TO BEING POISED TO TAKE ITS ADVANCED ELECTRICAL DEVICE TO MARKET SPANS TWO DECADES IT INVOLVES MISSED OPPORTUNITIES BLUNDERS CHASES DOWN BLIND ALLEYS AND LEGAL TUSSLES THAT FORCED THE COMPANY TO MOVE ITS VENTURE LIKE A GYPSY CARAVAN ACROSS EUROPE TO DATE MEDICAL SCIENCE HAS OFFERED NO SATISFACTORY TREATMENT FOR A CARDIAC EVENT THAT STRIKES AN ESTIMATED 250000 AMERICANS EACH YEAR WITHOUT WARNING THEIR HEARTS BEGIN RACING TRIGGERING SEVERE WEAKNESS NAUSEA AND FAINTING SPELLS NEARLY ONE IN THREE VICTIMS LIKE LOYOLA MARYMOUNT UNIVERSITY BASKETBALL STAR HANK GATHERS DIE SUDDENLY AFTER THEIR HEARTBEATS ESCALATE INTO ACUTE SPASMS FOR YEARS MEDICAL COMPANIES HAVE BEEN LOCKED IN COMPETITION TO MARKET A SURGICALLY IMPLANTED DEVICE TO INSTANTLY COMBAT THESE RAPIDHEARTBEAT ATTACKS AND RETURN THE HEART'S RHYTHM TO NORMAL THERE IS ONE SUCH DEVICE ON THE US MARKET NOW BUT IT HAS LIMITED CAPABILITIES MEDTRONIC ALREADY THE WORLD LEADER IN PACEMAKERS FOR SLOW HEARTBEATS COULD EVENTUALLY GRAB THAT TITLE IN THE TREATMENT OF RACING HEARTS AS WELL INDUSTRY ANALYSTS SAY THE OVERALL MARKET FOR SUCH MACHINES CALLED IMPLANTABLE DEFIBRILLATORS COULD REACH 1 BILLION ANNUALLY THIS DECADE THE STAGE IS SET FOR MEDTRONIC TO BECOME THE DOMINANT FORCE IN THE MARKET FOR SUCH DEVICES SAYS CAROL WINSLOW OF VECTOR SECURITIES INTERNATIONAL OF ALL THE NEW MEDICALDEVICE TECHNOLOGIES INTRODUCED THIS DECADE IMPLANTABLE DEVICES FOR MANAGING RAPID HEARTBEATS WILL SAVE MORE LIVES AND HAVE GREATER PATIENT BENEFIT THAN ANY OTHER AND THERE ARE GROWING HOPES THAT THE MACHINES ABOUT THE SIZE OF A BAR OF SOAP ALSO CAN BE IMPLANTED IN PEOPLE WITH OTHER TYPES OF CARDIAC DISEASE TO AVERT SUDDEN DEATH MEDTRONIC OF COURSE IS NOT ASSURED OF SUCCESS TWO COMPETITORS ARE CLOSE BEHIND IN THE FDA APPROVAL PROCESS FOR THEIR OWN ADVANCED DEVICES THEY ARE VENTRITEX INC OF SUNNYVALE CALIF AND GIANT ELI LILLY & CO IN INDIANAPOLIS THE MAKER OF THE LESSSOPHISTICATED DEVICE CURRENTLY ON THE MARKET THEY COULD PROVE FORMIDABLE RIVALS BUT MEDTRONIC IS A YEAR AHEAD OF LILLY IN DEVELOPING A DEVICE THAT CAN DELIVER THREE LEVELS OF ELECTRICAL CURRENT TO THE HEART VENTRITEX IS NEARLY NECK AND NECK WITH MEDTRONIC ON THE DEVICE ITSELF AND COULD EVEN GET FDA APPROVAL AT THE SAME TIME AS MEDTRONIC BUT IT HASN'T ANYTHING LIKE MEDTRONIC'S MARKETING POWER BOTH MEDTRONIC AND LILLY ARE FAR AHEAD OF VENTRITEX IN DEVELOPING A WIRE OR LEAD TO GREATLY SIMPLIFY IMPLANT SURGERY MEDICAL DEVICES HAVE A CHECKERED HISTORY MEDTRONIC ITSELF HAD TO ISSUE A HEALTH SAFETY ALERT IN 1991 AFTER SOME OF THE LEADS ON ITS PACEMAKERS WERE FOUND TO LOSE CAPACITY TO CONDUCT ELECTRICITY BUT TRIALS OF THE DEFIBRILLATOR WITH 742 PATIENTS OBSERVED AN AVERAGE OF 10 MONTHS HAVE BEEN ENCOURAGING THEY SHOW MEDTRONIC'S MACHINE STOPPED ALL BUT NINE OF 1680 EPISODES OF THE ACUTE LIFETHREATENING OUTOFCONTROL HEARTBEAT CALLED VENTRICULAR FIBRILLATION ONLY THREE OF THE EXTREMELY ILL PATIENTS DIED DURING THE STUDY AND OF THOSE ONLY ONE DIED FROM A SUDDEN CARDIAC INCIDENT THE MACHINE STOPPED ALL BUT 116 OF 13562 EPISODES OF THE LESSSEVERE VENTRICULAR TACHYCARDIA IN WHICH THE HEART DOESN'T PUMP ENOUGH BLOOD DRUGS CURRENTLY AVAILABLE HELP SOME PATIENTS WITH THESE CONDITIONS BUT IN MANY PEOPLE THE DRUGS DON'T WORK OR CAN'T BE TOLERATED THE ADVANCED THREESTAGE MACHINES SO FAR ARE FOR SALE IN EUROPE CANADA AND AUSTRALIA BUT HAVE BEEN AVAILABLE IN THE US ONLY THROUGH PARTICIPATION IN THE CLINICAL TRIALS SUCH ENCOURAGING RESULTS WERE ONLY A DISTANT DREAM IN 1967 WHEN DR MIROWSKI THE ISRAELI CARDIOLOGIST FIRST BEGAN WORKING TOWARD A MACHINE TO PREVENT SUDDEN CARDIAC DEATH HIS PIONEERING WORK LED IN 1985 TO THE FIRST IMPLANTABLE DEFIBRILLATOR A WATERSHED BUT A RUDIMENTARY ONE STAGE SHOCK BOX THAT'S THE ONLY ONE WITH FDA APPROVAL WHILE THAT DEVICE GENERATES AN ESTIMATED 230 MILLION ANNUALLY FOR ITS MAKER LILLY ITS MASSIVE JOLT TO THE HEART MAKES IT USEFUL PRIMARILY FOR PATIENTS WHO HAVE BEEN REVIVED AFTER EXPERIENCING VENTRICULAR FIBRILLATION IT LACKS THE IMPERCEPTIBLE ELECTRICAL IMPULSES OFFERED BY THE THREESTAGE DEVICE AIMED AT HELPING THE MAJORITY OF PEOPLE WITH THE RECURRING RAPID HEARTBEATS OF TACHYCARDIA THE THREESTAGE DEVICES CAN ALSO ADMINISTER MASSIVE SHOCK IF NECESSARY DR MIROWSKI WHO FLED THE NAZIS AS A YOUTH IN POLAND WAS WORKING IN A TEL AVIV HOSPITAL WHEN HIS MENTOR DIED OF SUDDEN CARDIAC CAUSES IN 1967 THE DEATH PROPELLED HIM INTO HIS QUEST FOR A THERAPY ULTIMATELY IT THRUST HIM AS WELL INTO AN OFTEN RANCOROUS RELATIONSHIP WITH MEDTRONIC WITH COMPLEX TIES THAT LASTED 18 YEARS UNTIL HIS OWN DEATH OF CANCER IN 1990 INITIALLY HIS CAMPAIGN WAS DENOUNCED BY COLLEAGUES DEFIBRILLATORS REQUIRE A HUGE ELECTRICAL WALLOP MANY TIMES THAT OF A PACEMAKER THE JOLT IS OFTEN DESCRIBED AS RESEMBLING A KICK IN THE CHEST FROM A HORSE MINIATURIZING THE DEVICE'S COMPONENTS ENOUGH FOR IMPLANTATION SEEMED FANCIFUL 25 YEARS AGO UNFAZED DR MIROWSKI MOVED TO BALTIMORE'S SINAI HOSPITAL TO PURSUE HIS CONCEPT BY 1969 HIS MEDICAL TEAM HAD BUILT A PROTOTYPE SMALL ENOUGH TO TEST IN DOGS AND IN APRIL OF THE FOLLOWING YEAR DR MIROWSKI MET WITH MEDTRONIC'S CHAIRMAN AND COFOUNDER EARL BAKKEN AND DELIVERED A 30MINUTE LECTURE ABOUT WHY THE DEFIBRILLATOR WAS NEEDED MR BAKKEN WAS IMPRESSED ENOUGH TO VISIT BALTIMORE FOR A DEMONSTRATION WITH A LABORATORY DOG DR MIROWSKI AND MORTON MOWER A COLLEAGUE AND NOW A SENIOR EXECUTIVE AT LILLY'S CARDIAC PACEMAKERS INC SUBSIDIARY USED A SMALL ELECTRIC JOLT TO STOP THE ANIMAL'S HEART THE DOG COLLAPSED SECONDS LATER AN IMPLANTED DEFIBRILLATOR WAS AUTOMATICALLY ACTIVATED AND THE DOG STOOD UP WAGGING ITS TAIL WITHIN DAYS MEDTRONIC HAD SIGNED A LICENSING DEAL WITH THE TWO DOCTORS BUT FROM THE START THINGS BEGAN FALLING APART IN THE END MEDTRONIC AND DR MIROWSKI WOULD END UP ENTWINED IN SEVEN YEARS OF PATENT LITIGATION DR MIROWSKI FELT MEDTRONIC WAS DAWDLING A CHARACTERIZATION COMPANY EXECUTIVES TODAY DON'T DISPUTE YEARS LATER DR MIROWSKI IN COURT TESTIMONY WOULD DISMISS MEDTRONIC STAFFERS IN CHARGE OF THE PROJECT AS NOT MOTIVATED THE PARTNERSHIP WASN'T HELPED EITHER WHEN IN 1972 BERNARD LOWN AN EMINENT HARVARD UNIVERSITY CARDIOLOGIST WROTE A MEDICALJOURNAL ARTICLE HIGHLY CRITICAL OF THE DEFIBRILLATOR IDEA AMONG OTHER THINGS HE FEARED PEOPLE WOULD BE ELECTROCUTED MEDTRONIC DROPPED ALL RIGHTS TO THE MIROWSKI PATENT ONE OF SEVERAL ERRORS THE COMPANY WOULD MAKE IN ENSUING YEARS BOBBY I GRIFFIN NOW PRESIDENT OF MEDTRONIC'S CARDIACPACING BUSINESS SAYS THE COMPANY TOLD DR MIROWSKI TO GET LOST IT WAS A BAD MISTAKE HE SAYS THE COMPANY MADE LITTLE PROGRESS ON THE IMPLANTABLE DEFIBRILLATOR THROUGHOUT THE 1970S WHILE MEDTRONIC TARRIED DRS MIROWSKI AND MOWER MADE GREAT STRIDES THEY HOOKED UP WITH A PITTSBURGHAREA COMPANY INTEC INC AND ON FEB 4 1980 THE INTEC TEAM IMPLANTED THE FIRST DEFIBRILLATOR IN A HUMAN BEING THE CALIFORNIA WOMAN LIVED FOR A NUMBER OF YEARS AFTER HER IMPLANT USING A COMBINATION OF THE MACHINE AND A CARDIAC DRUG IN 1985 ELI LILLY BOUGHT INTEC AND BEGAN MARKETING THE MACHINE THROUGH ITS ST PAULBASED CARDIAC PACEMAKERS UNIT DR MIROWSKI BECAME A LILLY CONSULTANT TWO COLLEAGUES DRS MOWER AND PHILIP R REID BECAME LILLY EXECUTIVES MEANWHILE MEDTRONIC COMPOUNDED EARLY BLUNDERS A HANDFUL OF MEDTRONIC ENGINEERS CONTINUED TO TINKER WITH MAKING A DEFIBRILLATOR IN THE EARLY 1980S BUT MANAGEMENT SHOWED LITTLE INTEREST EVEN THOSE PALTRY EFFORTS SPARKED A 1983 PATENT LAWSUIT FROM INTEC MEDTRONIC HELD A LICENSE TO AN EARLIER 1953 PATENT FOR A BREADBOXSIZE MACHINE CONNECTED BY WIRES TO A PATIENT AND USED IN HOSPITAL SETTINGS MEDTRONIC ENGINEERS CAME TANTALIZINGLY CLOSE TO A WORKABLE SHOCK BOX OF THEIR OWN IN 1981 WITH A PROTOTYPE USING WHAT PROVED TO BE THE RIGHT LEVEL OF ELECTRICITY ABOUT 750 VOLTS OR ROUGHLY SEVEN TIMES THE LEVEL IN THE AVERAGE HOUSEHOLD CURRENT BUT THE ENGINEERS ABANDONED IT TO PURSUE OTHER MODELS WE WERE SO CLOSE IT WAS JUST DUMB SAYS MR GRIFFIN IN 1985 MEDTRONIC GOT A NEW CHAIRMAN WINSTON R WALLIN WHO DECIDED THE COMPANY HAD ERRED BY DALLYING ON DEFIBRILLATORS HE BECAME CONVINCED MEDTRONIC WOULD LOSE ITS PREEMINENCE IN CARDIAC PACING IF IT DIDN'T TREAT RAPID HEARTBEATS LUCKILY FOR MEDTRONIC LILLY OCCUPIED WITH WINNING ACCEPTANCE FOR ITS RUDIMENTARY ONESTAGE MACHINE DIDN'T CONCENTRATE ON A THREETIERED DEVICE ALSO MR WALLIN SUDDENLY HAD MORE MONEY TO WORK WITH MEDTRONIC ENGINEERS HAD PRODUCED A TECHNOLOGICAL BREAKTHROUGH BY INVENTING RATE RESPONSIVE PACEMAKERS WHICH ADJUSTED TO PATIENTS' ACTIVITY LEVELS THEY BECAME THE INDUSTRY STANDARD AND PROVIDED MEDTRONIC WITH 10 GROWTH IN REVENUE IN A WEAK MARKET THE DEFIBRILLATOR EFFORT SOON TOOK ON AN INTENSITY AND SCOPE THAT HAD BEEN MISSING FOR YEARS WITH NO CERTAINTY THE THREESTAGE MACHINE WOULD WORK MEDTRONIC INVESTED 100 MILLION IN IT OVER THE NEXT SEVERAL YEARS A ONETIME BACKROOM ENTERPRISE GREW TO 100 PEOPLE BY 1988 AND TO 300 EMPLOYEES TODAY MR WALLIN ACTUALLY WANTED TO GIVE US MORE MONEY THAN I COULD USE SAYS MR GRIFFIN WHEN SUBORDINATES PROPOSED SPENDING 5 MILLION FOR A PURDUE UNIVERSITY PATENT THAT MIGHT BE USEFUL MR WALLIN RESPONDED A 5 MILLION PATENT DO IT BEING IN THE DEFIBRILLATOR BUSINESS IS WORTH MORE THAN 5 MILLION WARREN WATSON HEAD OF THE DEFIBRILLATOR EFFORT SAW HIS BOSS'S DETERMINATION FIRSTHAND A PHILADELPHIA JUDGE IN THE PATENT DISPUTE SUIT HAD ASKED THE PARTIES TO COME IN 1988 TO TRY TO SETTLE THE CASE AND MR WALLIN DURING THE FLIGHT FROM MINNEAPOLIS ASKED HOW MUCH MONEY IT WOULD TAKE TO WIND UP THE SUIT MR WATSON KNEW PATENT SETTLEMENTS THEN RARELY EXCEEDED 500000 BUT HE KNEW THE MACHINE HAD HUGE PROMISE HE SWALLOWED HARD AND VENTURED THE FIGURE 25 MILLION FIGURING MR WALLIN WOULD SURELY BALK AW HELL IT'S ONLY MONEY LET'S DO IT MR WALLIN SAID ULTIMATELY THE SETTLEMENT TALKS BROKE DOWN AND A TRIAL JURY FOUND AGAINST MEDTRONIC JURORS WERE PERSUADED BY THE STORY OF HOW DR MIROWSKI WAS INSPIRED TOWARD HIS WORK AND BY THE MAN HIMSELF THEN SUFFERING FROM CANCER FEDERAL JUDGE J WILLIAM DITTER JR ORDERED MEDTRONIC NOT TO MAKE USE OR SELL ANY TACHYCARDIA DEVICES IN THE US UNTIL THE MIROWSKI PATENT EXPIRED IN 1990 THIS WAS A HAMMER BLOW TO MEDTRONIC NOW FINALLY FOCUSED ON SEIZING THE LEAD IN TREATING RACING HEARTS SINCE THE COMPANY FELT IT COULDN'T ABANDON WORK FOR TWO YEARS IT DECIDED THAT IF IT COULDN'T DO ITS RESEARCH IN MINNEAPOLIS IT WOULD DO IT OVERSEAS SO MEDTRONIC SHIPPED ROOMFULS OF ELECTRONIC CIRCUITRY PLASTIC TUBING AND COMPUTERIZED ASSEMBLY EQUIPMENT TO KERKRADE A DUTCH MINING TOWN OF MEDIEVAL VINTAGE ON THE GERMAN BORDER WHERE THE COMPANY HAD A MANUFACTURING PLANT STAFFERS IN THE NETHERLANDS WERE TRAINED IN THE METICULOUS WORK OF ASSEMBLING THE TITANIUMENCASED MACHINES LARGE PORTIONS OF THAT WORK STILL ARE DONE BY HAND BY WORKERS WEARING HOSPITAL GOWNS AND MASKS IN ANTISEPTIC CLEAN ROOMS BUT LILLY PURSUED MEDTRONIC IN THE DUTCH COURT SYSTEM AND WON A PRELIMINARY INJUNCTION SO AGAIN MEDTRONIC TRANSPORTED THE PROJECT THIS TIME TO THE FRENCH VILLAGE OF FOURMIES 3 1/2 HOURS AWAY IN THE ARDENNES NEAR THE BELGIAN FRONTIER THE COMPANY FORGED AHEAD UNDETERRED THEN ON JUNE 18 1990 THE SUPREME COURT DECIDED THAT MEDTRONIC HAD A RIGHT TO PURSUE THE VENTURE IN THE US AFTER ALL RULING THAT FEDERAL PATENT LAW ALLOWS A MEDICALDEVICE MAKER TO DO CLINICAL AND DEVELOPMENT WORK UNHINDERED BY PATENT DISPUTES THESE FIGHTS SHOULD AWAIT THE DEVICES' MARKETING THE COURT FOUND SOON AFTERWARD MEDTRONIC AND LILLY STARTED TALKS THAT FINALLY SETTLED THE LITIGATION IN MID1991 MEDTRONIC WON THE RIGHT TO FINISH DEVELOPMENT AND CLINICAL TRIALS OF ITS DEFIBRILLATOR IN EXCHANGE MEDTRONIC AGREED TO MANUFACTURE RATERESPONSIVE PACEMAKERS FOR LILLY NOW MEDTRONIC SEEMS POISED FOR THE PAYOFF FROM ITS CHANGE OF COURSE UNDER MR WALLIN WHO IS STILL CHAIRMAN BUT HAS TURNED OVER HIS CEO POST TO WILLIAM W GEORGE MANY ANALYSTS FIGURE MEDTRONIC'S BUSINESS FROM DEFIBRILLATORS EACH CARRIES A 20000 PRICE TAG WILL THIS DECADE RIVAL ITS PACEMAKER REVENUE ALREADY NEARLY 800 MILLION OF ITS TOTAL 12 BILLION IN ANNUAL REVENUE MEDTRONIC OBVIOUSLY GOT THEIR ACT TOGETHER AND MADE A VERY GOOD DEVICE SAYS ROGER WINKLE A CALIFORNIA CARDIOLOGIST MEDTRONIC COVERED AN ENORMOUS AMOUNT OF GROUND IN A SHORT PERIOD OF TIME CARDIOLOGISTS SEE A MUCH MORE FUNDAMENTAL ISSUE OF CARDIAC HEALTH AT STAKE THEY HOPE TO IDENTIFY PATIENTS AT GREATEST RISK OF SUDDEN DEATH FROM ANY CARDIAC CAUSE AND IMPLANT A MACHINE TO PREVENT IT STUDIES ALREADY ARE UNDER WAY TO SEE IF THE MACHINE WILL PROLONG LIVES OF SUCH PEOPLE SAYS JOHN FISHER A CARDIOLOGIST AT MONTEFIORE MEDICAL CENTER IN NEW YORK THE LONGTERM IMPLICATIONS OF THE DEVICES ARE IMMENSE 9301120062 930112 GM TAPS ALCOA'S CHAIRMAN O'NEILL KNOWN FOR COSTCUTTING DRIVE FOR BOARD BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP NAMED TO ITS BOARD ALUMINUM CO OF AMERICA'S CHAIRMAN PAUL H O'NEILL WHO HAS SHAKEN UP THE OLDLINE METALS COMPANY WITH A SWEEPING REORGANIZATION AND COSTCUTTING CAMPAIGN MR O'NEILL A 57YEAROLD FORMER FEDERAL GOVERNMENT OFFICIAL WILL EXPAND TO 15 THE MEMBERSHIP OF GM'S BOARD WHICH HAS BECOME MUCH MORE DEEPLY INVOLVED IN THE AFFAIRS OF THE COMPANY'S STRUGGLING DOMESTIC AUTO OPERATIONS GM DIRECTORS MET IN DETROIT YESTERDAY AND DISCUSSED A MAJOR REVIEW OF THE COMPANY'S FINANCIAL MANAGEMENT IN THE PAST AND ITS FINANCIAL PLAN FOR THE FUTURE MR O'NEILL WHO TOOK OVER ALCOA IN 1987 LAST YEAR BEGAN A TOUGH COSTREDUCTION CAMPAIGN CLOSING FACTORIES AND SLASHING THE COMPANY'S HEADQUARTERS STAFF IN PITTSBURGH IN 1991 MR O'NEILL SPLIT ALCOA INTO A COLLECTION OF SEMIAUTONOMOUS UNITS A MOVE THAT WAS FOLLOWED BY BIG COST SAVINGS IN 1992 AND SHARP GAINS IN PRODUCTIVITY MR O'NEILL'S ACTIONS HAVE ALSO PRODUCED SOME CONTROVERSY SOME ALCOA CUSTOMERS HAVE COMPLAINED THAT ALCOA HAS LET QUALITY SLIP AS OFFICIALS STRIVE TO CUT COSTS ALCOA MANAGERS SAY THE QUALITY PROBLEMS ARE RESOLVED AND UNRELATED TO COSTCUTTING MEANWHILE ALCOA'S PROFITS HAVE FAILED TO REBOUND BECAUSE THE COMPANY'S FORTUNES REMAIN TIED TO THE SLUGGISH WORLD ALUMINUM MARKET BUT MR O'NEILL CLEARLY SPEAKS THE SAME LANGUAGE AS GM'S CHAIRMAN JOHN G SMALE AND ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR MESSRS SMALE AND SMITH PREACH THE IMPORTANCE OF ELIMINATING BUREAUCRACY AND PROCESSES THAT DON'T ADD VALUE TO GM'S PRODUCTS MR O'NEILL IN A WALL STREET JOURNAL INTERVIEW LAST NOVEMBER SAID I'M TRYING TO BUILD AN ORGANIZATION THAT CREATES MORE VALUE WITH THE RESOURCES WE HAVE THAN ANY ONE ELSE IN THE WORLD ALCOA LIKE OTHER ALUMINUM COMPANIES IS EAGER TO SUPPLY MORE ALUMINUM TO CAR MAKERS LOOKING FOR A LIGHTWEIGHT SUBSTITUTE FOR STEEL BUT A GM SPOKESMAN SAID THAT ALCOA CURRENTLY ISN'T A SIGNIFICANT SUPPLIER TO GM AS DEFINED IN GM'S BYLAWS MR O'NEILL THEREFORE ISN'T AFFECTED BY PROVISIONS IN THOSE BYLAWS DESIGNED TO PREVENT CONFLICTS OF INTEREST HE SAID MEANWHILE GM'S BOARD MEMBERS SPENT MUCH OF YESTERDAY DISCUSSING THE RESULTS OF A WIDERANGING ANALYSIS OF THE COMPANY'S ACCOUNTING AND FINANCIAL MANAGEMENT THE STUDY WAS CONDUCTED BY GM'S FINANCE STAFF AND JP MORGAN & CO THE BANK RUN BY GM DIRECTOR DENNIS WEATHERSTONE GM CONFIRMED IN A STATEMENT YESTERDAY GM SAID THE REPORT FOCUSED ON THE LONGTERM STRATEGIES BEING PURSUED BY OUR NORTH AMERICA OPERATIONS AND CONFIRMED THAT OUR FINANCIAL AND OPERATING PLANS ARE ON TARGET THE REPORT THE STATEMENT ADDED WAS ENTHUSIASTICALLY RECEIVED BY THE BOARD OF DIRECTORS GM EXECUTIVES HAVE HINTED THAT THE FINANCIAL PERFORMANCE OF GM'S NORTH AMERICAN OPERATIONS HAS IMPROVED SUBSTANTIALLY IN RECENT WEEKS THE SPEED OF IMPROVEMENT IS SURPRISING GM MANAGEMENT SAID EXECUTIVE VICE PRESIDENT WILLIAM E HOGLUND LAST NIGHT IN A SPEECH AT AN INDUSTRY CONFERENCE IN DETROIT A GM SPOKESMAN DECLINED TO ELABORATE ON WHETHER THE STUDY WILL RESULT IN ADDITIONAL CHARGES RELATED TO PUTTING GM'S ACCOUNTING ON A MORE CONSERVATIVE FOOTING GM FINANCE EXECUTIVES TOLD A GROUP OF ANALYSTS LAST WEEK THAT THE COMPANY WOULD BECOME MORE CONSERVATIVE IN ITS ACCOUNTING METHODS A REVERSAL OF A TREND TOWARD MORE LIBERAL ACCOUNTING THAT BOOSTED GM'S REPORTED EARNINGS DURING THE LATE 1980S SEPARATELY MR HOGLUND SAID THAT EARLY RETIREMENT PACKAGES BEING OFFERED TO LAIDOFF UNITED AUTO WORKERS UNION EMPLOYEES SEEM TO BE WELLRECEIVED AND GM EXPECTS 5000 TO 10000 HOURLY WORKERS TO TAKE THE PACKAGES HE ALSO SAID GM IS DISCUSSING A LOT OF OPPORTUNITIES WITH TOYOTA MOTOR CORP BUT HE SAID THE TALKS SO FAR AREN'T BEYOND THE STAGE OF BEING IDEAS IN ANOTHER AREA GM SAID IT HAS TOLD DEALERS THEY MAY ACT ON THEIR OWN AUTHORITY TO REPAIR DEFECTIVE PAINT ON GM VEHICLES AS MUCH AS SIX YEARS OLD AT NO COST TO THE OWNERS THE REPAIRS WILL BE OFFERED ON A CASEBYCASE BASIS AND DEALERS MAY MAKE THE REPAIRS WITHOUT GETTING PRIOR CLEARANCE FROM GM IN ANOTHER ACTION GM SET A DIVIDEND OF 63334 CENTS A SHARE ON ITS RECENTLY ISSUED SERIES G DEPOSITARY SHARES GM ALSO ANNOUNCED IT HAS NAMED HANS J WEISER AS PRESIDENT OF ITS EUROPEAN COMPONENT OPERATIONS MR WEISER WILL CONTINUE IN HIS POST AS MANAGING DIRECTOR OF GM'S PACKARD ELECTRIC EUROPE UNIT GM COMMON STOCK WAS QUOTED AT 3425 UP 875 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY DANA MILBANK IN PITTSBURGH CONTRIBUTED TO THIS ARTICLE