TOKYO RICE THE BACKBONE OF JAPANESE AGRICULTURE FOR 1000 YEARS HAS BEEN REPLACED AS THE NATION'S MOST VALUABLE FOOD PRODUCT BY MEAT AND DAIRY THE AGRICULTURE MINISTRY SAID JAPANESE FARMERS PRODUCED AN ESTIMATED 311 TRILLION YEN 2485 BILLION OF LIVESTOCK IN 1991 SURPASSING THE COUNTRY'S 292 TRILLION YEN RICE CROP IT WAS THE FIRST TIME RICE WAS BUMPED FROM THE TOP SPOT SINCE 1955 WHEN THE MINISTRY BEGAN KEEPING STATISTICS A MINISTRY OFFICIAL SAID RICE FELL TO SECOND PLACE PARTLY BECAUSE OF POOR HARVESTS CAUSED BY TYPHOON DAMAGE AND PARTLY BECAUSE OF LOWER GOVERNMENT PAYMENTS TO FARMERS FOR THEIR CROP RICE OUTPUT FELL 87 IN 1991 THE SECOND STRAIGHT ANNUAL DECLINE MEANWHILE LIVESTOCK OUTPUT ROSE 07 THE THIRD STRAIGHT ANNUAL INCREASE LED BY GREATER PRODUCTION OF RAW MILK PORK AND EGGS JAPAN'S TOTAL AGRICULTURAL OUTPUT FOR 1991 WAS ESTIMATED AT 1145 TRILLION YEN DOWN 03 FROM 1990 9301120060 930112 INTERNATIONAL NEW JAGUAR MODEL COULD BE BUILT IN US FORD SAYS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN WHILE PLEDGING TO KEEP JAGUAR TRUE TO ITS EXALTED NAME FORD MOTOR CO IS WEIGHING WHETHER TO BUILD A NEW MODEL OF THE LUXURY CAR IN THE US WE HAVE TO CONSIDER ALL THE POSSIBILITIES AND THIS IS ONE OF THEM SAID A SPOKESMAN AT JAGUAR'S HEADQUARTERS IN COVENTRY ENGLAND JAGUAR IS OWNED BY FORD WHICH ALSO CONFIRMED THAT US PRODUCTION IS BEING CONSIDERED AS ONE OF MANY OPTIONS THE REPORT FIRST APPEARED IN THE FINANCIAL TIMES OF LONDON THE NEW MODEL IS DUE IN SHOWROOMS BY 1998 AND IS EXPECTED TO COMPETE WITH THE BMW 5 SERIES FROM GERMANY'S BAYERISCHE MOTOREN WERKE AG AND THE LEXUS MADE BY TOYOTA MOTOR CORP THE MOVE WOULD MARK A MAJOR STEP TOWARD INTEGRATING JAGUAR INTO FORD'S PRODUCTION SYSTEM AS WELL AS A SHARP SHIFT FOR THE IMAGECONSCIOUS BRITISH COMPANY JAGUAR ALREADY HAS VOWED TO EXPAND USE OF FORDPRODUCED COMPONENTS WHICH OFFER HEFTY SAVINGS BUT A MOVE OUTSIDE BRITAIN IS RISKIER EVER SINCE FORD BOUGHT JAGUAR IN 1989 FOR 16 BILLION 247 BILLION CRITICS HAVE WATCHED FOR HINTS THE LUXURY MARQUE WOULD BE TRANSFORMED INTO HIGHPRICED FORDS ONE FORD OFFICIAL SAID LAST YEAR THAT FORDIZING JAGUAR WOULD BE THE KISS OF DEATH FOR THE BRITISH AUTO MAKER BUT WITH JAGUAR BLEEDING RED INK AND FORD'S EUROPEAN OPERATIONS IN TROUBLE PRESSURE IS BUILDING TO FIND WAYS TO TURN THINGS AROUND PRODUCING THE NEW JAGUARS IN THE US COULD ALLOW JAGUAR TO ESCAPE CURRENCY FLUCTUATIONS AS WELL AS THE HEAVY TAX ON IMPORTED LUXURY CARS THE QUESTION IS WHETHER AMERICANS WILL PAY TOP PRICES FOR A JAGUAR WITHOUT THE MADE IN BRITAIN LABEL BMW IS BUILDING AN ASSEMBLY PLANT IN THE US AND EXPERTS SPECULATE OTHER LUXURY CAR MAKERS COULD FOLLOW INCLUDING MERCEDESBENZ AG THE CAR UNIT OF GERMANY'S DAIMLERBENZ AG 9301120059 930112 BUSINESS BRIEF CONSOLIDATED NATURAL GAS CO APPROVAL OF 42 INCREASE IN GAS RATE SOUGHT BY UNIT THE EAST OHIO GAS UNIT OF CLEVELAND'S CONSOLIDATED NATURAL GAS CO SAID IT PLANS TO BOOST TEMPORARILY GAS RATES BY 42 TO RECOVER THE INCREASED COST OF NATURAL GAS THE COMPANY SAID GAS PRICES WILL INCREASE BECAUSE OF THE RESTRUCTURING OF THE INTERSTATE PIPELINE NETWORK A RISE IN DEMAND AND PRICE VOLATILITY ON THE NATIONAL NATURAL GAS SPOT MARKET 9301120058 930112 FORM + FUNCTION A SECOND LOOK BY JOHN PIERSON THERE'S MORE THAN ONE WAY TO SKIN A CAT OR PUMP AIR PUMP AIR FROM BELOW NOT ABOVE SAYS A NORTH CAROLINA COMPANY THIS COLUMN LAST MARCH 2 DESCRIBED EFFORTS TO REPLACE AEROSOL DISPENSERS WITH HAND OR FINGER PUMPS AEROSOLS USE SMOGGY HYDROCARBONS TO PROPEL PRODUCT PUMPS USE MUSCLE POWER AND PURE AIR ONE SUCH PUMP AIRSPRAY DELIVERS VIDAL SASSOON HAIR SPRAY IN THE US AND A SCORE OF OTHER PRODUCTS IN EUROPE AIRSPRAY WORKS LIKE A BICYCLE PUMP A USER CREATES AIR PRESSURE BY PUSHING DOWNWARD FROM THE TOP OF A PLASTIC BOTTLE THE COLUMN BROUGHT A QUICK RESPONSE FROM LDSYSTEMS OF CHARLOTTE NC WHICH MAKES EUROSPRAY A COMPETING THOUGH LESS WIDELY USED PUMP INTRODUCED IN SWEDEN IN 1990 EUROSPRAY RESEMBLES AIRSPRAY BUT INSTEAD OF PUMPING AND SPRAYING AT THE TOP EUROSPRAY SPRAYS FROM THE TOP AND PUMPS FROM THE BOTTOM THE CHIEF ADVANTAGE THE MAKER CLAIMS LIES IN NOT HAVING TO REMOVE THE PUMP AND PERHAPS MISPLACE IT IN ORDER TO SPRAY SOME CUSTOMERS AGREE YOU DON'T TAKE IT OFF AND YOU DON'T LOSE IT SAYS SUSAN RILEY MANAGER OF TECHNICAL PRODUCTS AT AW CHESTERTON A MAKER OF INDUSTRIAL CLEANERS IN STONEHAM MASS THOUGH EUROSPRAY SO FAR HAS DISPENSED ONLY INDUSTRIAL PRODUCTS LDSYSTEMS PLANS TO INTRODUCE A SMALLER CONSUMER BOTTLE IN 1993 THE TOPPUMPERS DON'T ACCEPT THE CRITICISM BRENDAN SWAN PRESIDENT OF AIRSPRAY INTERNATIONAL POMPANO BEACH FLA SAYS HIS COMPANY HAS SOLD COUNTLESS MILLIONS OF ITS DISPENSERS AND HAS HAD NOT ONE COMPLAINT OF ANYONE LOSING THE CAP JERRY BUCHANAN HAS CAST HIS LOT WITH FLATNESS THE DEC 23 EDITION OF THIS COLUMN DISCUSSED FLEXIBLE REFILL POUCHES WHICH ARE GOOD FOR THE ENVIRONMENT BECAUSE THEY USE 70 LESS PLASTIC THAN THE ORIGINAL CONTAINERS AND THEY TAKE UP LITTLE SPACE IN LANDFILLS THE POUCH CONSISTS OF TWO PIECES OF PLASTIC BONDED TOGETHER AND A THIRD PIECE AT THE BOTTOM THAT LETS THE SIDES SPREAD APART WHEN THE PACKAGE IS FILLED THE POUCH STANDS UP ON THE STIFF EDGES OF ITS SIDES BUT IT'S TOO TIPPY SAYS MR BUCHANAN CHAIRMAN OF JEBCO PACKAGING SYSTEMS TUCKER GA MR BUCHANAN'S FLEXPOUCH NOW IN TESTS HAS A RIGID FLAT BOTTOM THAT HE SAYS MAKES THE CONTAINER MORE STABLE AND MORE PROMINENT ON MARKET SHELVES THE OLDER POUCHES AREN'T TOO TIPPY REPLIES HARVEY SASS A MARKETING MANAGER AT EASTMAN KODAK'S L&F PRODUCTS WHICH USES THEM FOR TWO KINDS OF CLEANERS EVEN WHEN THE POUCH IS NEARLY EMPTY IT'S STILL STANDING UPRIGHT IN THE CUPBOARD MR SASS SAYS THE IDEA OF THE RIGIDBOTTOMED STANDUP POUCH GETS RAVES FROM KEVIN O'LEARY MARKETING MANAGER AT AMERICAN NATIONAL CAN WHICH SUPPLIES ROLLS OF PLASTIC TO CONTAINER MAKERS A FLEXIBLE PACKAGE THAT LOOKS LIKE A BOTTLE IS AN EXCELLENT CONCEPT HE SAYS BUT MR O'LEARY FRETS THAT THE JEBCO POUCH IS SO COMPLEX IT MAY BE HARD TO PRODUCE FLEXPOUCH'S MR BUCHANAN SAYS PRODUCING HIS FLATBOTTOMED CONTAINER IS SO SIMPLE IT'S UNREAL THE TALE OF THE TUB ROLLS ON AS BATHROOM MAKERS CONTINUE SEEKING A BETTER SOAK FOR OLDER PEOPLE ON DEC 12 1991 THIS COLUMN DISCUSSED THE COMFORTCARE TUB FROM FERNO HEALTHCARE WILMINGTON OHIO THE BATHER SITS ON A FULLLENGTH BENCH AND RELEASES A LATCH THAT LETS A HALFTUBE ROTATE DOWN AROUND HIM THE HALFTUBE FILLS WITH WATER THAT BROUGHT REPLIES FROM MANY TUB MAKERS INCLUDING GRAND TRAVERSE TECHNOLOGIES TRAVERSE CITY MICH THE COMPANY HAS DESIGNED THE FREEDOM BATH WHICH RESEMBLES AN UPSIDEDOWN ROLLTOP DESK THE BATHER SITS ON A BUILTIN SEAT AND PRESSES A BUTTON TO AUTOMATICALLY ROLL UP THE DOOR FROM BENEATH ONLY WHEN THE DOOR SEAL IS INFLATED DOES THE DRAIN CLOSE AND THE WATER START THE DOOR CAN'T BE OPENED UNTIL THE TUB IS EMPTIED ART SILLS PRESIDENT OF GRAND TRAVERSE AND INVENTOR OF THE FREEDOM BATH SAYS HIS DESIGN HAS SIMPLER LINES THAN OTHER USERFRIENDLY TUBS AND NO NOOKS AND CRANNIES FOR DEBRIS IT IS ALSO DEEPER THAN THE COMPETITION HE SAYS SO IT PROVIDES FULL IMMERSION SOAK BATHING JACK ZELLNER INVENTOR OF THE COMFORTCARE TUB CALLS THE FREEDOM BATH THE MOST ACCESSIBLE BATH I'VE SEEN AND ONE THAT PROVIDES ALMOST A JAPANESESTYLE BATH VERY VERY DEEP BUT MR ZELLNER SEES A POSSIBLE NIGHTMARE SHOULD THE FREEDOM BATH'S ROLLAWAY DOOR PROVE HARD TO CLEAN AND MAINTAIN MR SILLS SAYS THE FREEDOM BATH'S DOOR IS GUIDED UP AND DOWN BY A SYSTEM THAT'S SIMPLE AND EASILY REACHED FOR CLEANING NEAL ZIMMERMAN A HARTFORD CONN ARCHITECT WHO SPECIALIZES IN DESIGN FOR THE DISABLED SAYS HE LIKES THAT THE FREEDOM BATH'S DOOR IS HIDDEN WHEN OPEN TOO MANY TUBS FOR THE ELDERLY HAVE DOORS THAT STICK OUT LIKE AN AUTOMOBLE DOOR IN YOUR BATHROOM MR ZIMMERMAN SAYS 9301120057 930112 BUSINESS BRIEF PH GLATFELTER CO EARLYRETIREMENT PROGRAM IS AIMED AT TRIMMING COSTS PH GLATFELTER CO A MAKER OF SPECIALTY PRINTING AND TOBACCO PAPER PRODUCTS INSTITUTED AN EARLYRETIREMENT PLAN TO TRIM ITS WORK FORCE AND CUT COSTS GLATFELTER SAID IN SPRING GROVE PA THAT IT INTENDS TO REAP ANNUAL SAVINGS OF 75 MILLION ONCE THE EARLYRETIREMENT PLAN IS FULLY ENACTED WORKERS HAVE UNTIL MARCH 5 TO ACCEPT THE PLAN AND THOSE WHO ACCEPT IT WILL RETIRE MAY 5 THE COMPANY WHICH EMPLOYS 3400 PERSONS WOULDN'T SPECIFY THE NUMBER OF RETIREMENTS IT SOUGHT BUT GLATFELTER SAID THAT IF NOT ENOUGH WORKERS ACCEPTED THE PLAN IT WOULD TERMINATE THE NECESSARY AMOUNT OF WORKERS TO REACH ITS HEADCOUNT GOALS THE COMPANY WOULDN'T OUTLINE THE DETAILS OF ITS PLAN SAVE FOR ELIGIBILITY REQUIREMENTS AT ITS SPRING GROVE AND NEENAH WIS SITES SALARIED EMPLOYEES MUST BE AT LEAST AGE 55 BY THE END OF 1993 TO QUALIFY SALARIED EMPLOYEES MUST BE AT LEAST 52 AT THE COMPANY'S ECUSTA DIVISION PISGAH FOREST NC TO QUALIFY 9301120056 930112 ABREAST OF THE MARKET INDUSTRIALS GAIN 1108 TO 326275 REFLECTING CALMER BOND MARKET BY ANITA RAGHAVAN AND CHRISTOPHER ELLIOTT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCKS STEERED BY A CALMER BOND MARKET REBOUNDED MODERATELY FROM LAST WEEK'S HEAVY SELLOFF ANALYSTS SAID INVESTORS WERE WARY AHEAD OF FRIDAY'S EXPIRATION OF STOCK INDEX FUTURES AND OPTIONS AN EVENT THAT OFTEN CREATES BIG SWINGS IN STOCK PRICES TENSIONS IN THE MIDDLE EAST ALSO CONTRIBUTED TO INVESTOR SKITTISHNESS BIG BOARD VOLUME DROPPED TO 217159000 SHARES FROM 262620000 SHARES FRIDAY ADVANCERS OUTNUMBERED DECLINERS 1098 TO 727 HIGHER BOND PRICES HELPED STOCKS FIRM EARLY IN THE DAY BUT AS BOND PRICES BEGAN SLIPPING IN THE AFTERNOON STOCKS RETREATED AS WELL UNTIL A MODEST RALLY IN THE CLOSING HALFHOUR MADE UP MUCH OF THE LOST GROUND JACK BAKER FURMAN SELZ MANAGING DIRECTOR FOR STOCK TRADING SAID HE WAS ENCOURAGED THAT STOCK PRICES STABILIZED YESTERDAY CONSIDERING THE LATEST TROUBLES BETWEEN IRAQ AND THE UN HE SAID IF INVESTORS NEEDED A REASON TO SELL STOCKS THEY HAD IT KODAK WAS THE DAY'S THIRD MOST ACTIVE STOCK SOARING 3 1/4 TO 45 ON 38 MILLION SHARES THE ROCHESTER NY CAMERA CONCERN SAID CHRISTOPHER J STEFFEN WILL BECOME CHIEF FINANCIAL OFFICER FEB 8 PETER ENDERLIN WHO FOLLOWS KODAK AT SMITH BARNEY HARRIS UPHAM & CO HAILED MR STEFFEN'S APPOINTMENT HE COMES FROM THE OUTSIDE AND IT'S A SIGNAL AGAIN AND WE'VE SEEN A COUPLE OF THESE RECENTLY THAT IT IS NOT BUSINESS AS USUAL AT KODAK HE SAID MR ENDERLIN NOTED THAT THE DAY MR STEFFEN ANNOUNCED HE WAS LEAVING AS CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER OF HONEYWELL THAT COMPANY'S STOCK DROPPED 1 1/4 POINTS MR ENDERLIN SUGGESTED THAT TRADERS ALSO MAY HAVE BEEN BIDDING UP KODAK IN EXPECTATION OF FURTHER RESTRUCTURING MOVES INCLUDING POSSIBLE LAYOFFS MR BAKER OF FURMAN SELZ SAID MANY OF THE STOCKS THAT WERE BRUISED IN LAST WEEK'S MARKET ROUT BOUNCED BACK YESTERDAY AMONG THEM WAS IBM THE COMPUTER GIANT HAS BEEN REELING RECENTLY ON THE PROSPECT THAT IT MAY HAVE TO CUT ITS LUSH DIVIDEND YESTERDAY IBM GAINED 1 1/4 POINTS TO 47 3/4 AND WAS SECOND ON THE ACTIVE LIST OTHER COMPUTER STOCKS GAINED COMPAQ ADVANCED 2 1/4 TO 50 1/2 AND HEWLETTPACKARD ROSE 2 TO 72 3/4 AT THE TOP OF THE ACTIVE LIST WAS TELEFONOS DE MEXICO WHOSE AMERICAN DEPOSITARY RECEIPTS FELL 1 3/4 TO 55 1/4 MEXICO'S PHONE COMPANY LOGGED A 138 YEARTOYEAR JUMP IN THE NUMBER OF TELEPHONE LINES IT SERVICES FOR 1992'S FIRST NINE MONTHS BUT SOME ANALYSTS SAID THEY EXPECT FOURTHQUARTER RESULTS TO DRAG THE FIGURE DOWN TO THE 12 TO 13 RANGE FOR THE FULL YEAR ABOUT 73 MILLION TELEFONOS SHARES CHANGED HANDS IN OTHER CORPORATE DEVELOPMENTS JONES APPAREL GROUP PLUNGED 5 7/8 TO 31 1/4 A MONTGOMERY SECURITIES ANALYST LOWERED HER EARNINGS ESTIMATES FOR THE BRISTOL PA WOMEN'S CLOTHING MAKER SAYING THE COMPANY HAS BEEN A LITTLE MORE PROMOTIONAL IN ITS CORE SPORTSWEAR BUSINESS JONES'S SPORTSWEAR BUSINESS ACCOUNTS FOR ABOUT 55 OF ITS SALES SHE SAID TANDY SANK 1 5/8 TO 29 1/4 THE STOCK CLIMBED IN EARLY TRADING ON NEWS THAT THE COMPANY WOULD RESTRUCTURE ITSELF BUT A DEAN WITTER ANALYST REDUCED HIS RATING FOR TANDY TO NEUTRAL FROM BUY CITING DISAPPOINTING SALES IN DECEMBER ALTHOUGH THE ANALYST SAID TANDY'S OVERHAUL WOULD HELP IN THE LONG TERM HE CUT HIS EARNINGS ESTIMATES FOR THE FISCAL SECOND QUARTER AND FULL YEAR TELEDYNE SLIPPED 1 1/8 TO 19 1/8 THE LOS ANGELESBASED AEROSPACE COMPANY REPORTED FOURTHQUARTER NET INCOME OF 19 CENTS A SHARE OR 104 MILLION COMPARED WITH 50 CENTS A SHARE OR 281 MILLION A YEAR EARLIER INCLUDING A RESTRUCTURING CHARGE OF 31 MILLION EARNINGS IN THE LATEST QUARTER INCLUDED A GAIN OF 51 MILLION FOR RESTRUCTURING EXEL FELL 7/8 TO 44 THE BERMUDABASED INSURER POSTED FOURTHQUARTER PROFIT OF 125 A SHARE OR 715 MILLION COMPARED WITH YEAREARLIER EARNINGS OF 135 A SHARE OR 767 MILLION ANALYSTS WERE EXPECTING SLIGHTLY LOWER SHARE EARNINGS IN THE LATEST QUARTER NANTUCKET INDUSTRIES SLIPPED 2 1/8 TO 12 ON THE AMERICAN STOCK EXCHANGE THE NEW YORKBASED UNDERWEAR MAKER REPORTED FISCAL THIRDQUARTER NET OF 18 CENTS A SHARE OR 451000 THAT COMPARES WITH A YEAREARLIER 17 CENTS A SHARE OR 407000 SUNBEAMOSTER SANK 7/8 TO 15 7/8 NEWS OF CHAIRMAN PAUL B KAZARIAN'S OUSTER PROMPTED A PAINEWEBBER ANALYST TO CUT HIS RATING ON THE PROVIDENCE RI CONSUMER PRODUCTS COMPANY TO NEUTRAL FROM ATTRACTIVE THE ANALYST CITED UNCERTAINTY CREATED BY THE MANAGEMENT CHANGE HAFSLUND NYCOMED ROSE 1 1/2 TO 23 1/8 AFTER THE NORWEGIAN MEDICAL DEVICES COMPANY SAID THE US FOOD AND DRUG ADMINISTRATION GRANTED MARKETING APPROVAL FOR ITS OMNISCAN CONTRASTING AGENT USED IN MAGNETIC RESONANCE IMAGING EXAMINATIONS HAFSLUND SAID ITS US LICENSEE STERLING WINTHROP WILL BEGIN MARKETING OMNISCAN IMMEDIATELY MERRY LAND ADVANCED 5/8 TO 15 1/2 THE COMPANY REPORTED FOURTHQUARTER NET OF 18 CENTS A SHARE OR 23 MILLION COMPARED WITH A YEAREARLIER 21 CENTS A SHARE OR 19 MILLION THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 140 TO 39724 VOLUME WAS 13571670 SHARES THERE WERE 304 ADVANCERS AND 259 DECLINERS 9301120055 930112 BUSINESS BRIEF GLYCOMED INC RIGHTS TO SELL ASTENOSE DRUG ARE REGAINED FROM LILLY GLYCOMED INC ALAMEDA CALIF SAID IT REGAINED THE RIGHTS TO SELL ASTENOSE A DRUG THAT HELPS PREVENT ARTERIES FROM RECLOGGING AFTER THEY HAVE BEEN BORED OUT IN HEART SURGERY AND OTHER ARTERIOSCLEROSIS TREATMENTS GLYCOMED A PHARMACEUTICAL CONCERN HAD GRANTED ELI LILLY & CO AN OPTION TO SELL THE DRUG AS PART OF A RESEARCH AND DEVELOPMENT DEAL ENTERED IN 1990 UNDER THE AGREEMENT THAT RESTORES ITS RIGHT TO SELL ASTENOSE GLYCOMED WILL PAY ELI LILLY UNSPECIFIED ROYALTIES ON CERTAIN PRODUCT SALES IN OVERTHECOUNTER TRADING YESTERDAY GLYCOMED CLOSED AT 11 UP 125 CENTS 9301120054 930112 BUSINESS BRIEF HARSCO CORP INDUSTRIAL FIRM WINS APPEAL ON GOVERNMENT TRUCK PACT HARSCO CORP HARRISBURG PA SAID THE ARMED SERVICES BOARD OF CONTRACT APPEALS RULED THAT THE COMPANY IS ENTITLED TO BE REIMBURSED FOR FEDERAL EXCISE TAX IT PAID ON CERTAIN FIVETON TRUCKS THE TRUCKS WERE DELIVERED TO THE US GOVERNMENT AFTER OCT 1 1988 UNDER A 1986 CONTRACT THE RULING WHICH THE GOVERNMENT MAY APPEAL DOESN'T SPECIFY HOW MUCH HARSCO WOULD BE REIMBURSED HARSCO SAID IT EXPECTS ABOUT 46 MILLION AND IN ANTICIPATION OF A FAVORABLE RULING HAS ALREADY RECORDED THAT AMOUNT AS INCOME HARSCO AN INDUSTRIAL CONCERN HAS ALSO FILED A 16 MILLION CLAIM AGAINST THE GOVERNMENT FOR ALLEGEDLY CHANGING SHIPPING DESTINATIONS FOR TRUCKS SOLD UNDER THE SAME CONTRACT THE RULING DOESN'T DIRECTLY ADDRESS THAT CLAIM BUT HARSCO SAID THE RULING RESOLVES KEY FACTUAL ISSUES IN THAT CLAIM IN FAVOR OF HARSCO 9301120053 930112 REVCO INCREASES NOTES OFFERING THE NONCALLABLE NOTES TO BE ISSUED JAN 20 ARE DUE JAN 15 2000 THEY ARE PART OF THE DRUGSTORE CHAIN'S PLAN TO REFINANCE ITS WORKING CAPITAL AGREEMENT AND REDEEM THREE PUBLIC DEBT ISSUES OUTSTANDING THE OFFERING IS BEING UNDERWRITTEN BY THREE FIRMS LED BY MERRILL LYNCH & CO 9301120052 930112 BUSINESS BRIEF TEXAS INSTRUMENTS INC PATENT DISPUTES ARE SETTLED WITH TANDY ZENITH DATA TEXAS INSTRUMENTS INC SAID IT SETTLED PATENT DISPUTES WITH TANDY CORP AND ZENITH DATA SYSTEMS CORP THOUGH TERMS WEREN'T DISCLOSED THE DALLAS ELECTRONICS COMPANY SAID NEITHER SETTLEMENT WILL HAVE A MATERIAL IMPACT ON THE COMPANY'S ROYALTY REVENUE TEXAS INSTRUMENTS FILED A PATENT INFRINGEMENT SUIT AGAINST TANDY IN JULY 1991 LESS THAN A YEAR AFTER TANDY FILED AN ANTITRUST AND PATENT SUIT OF ITS OWN AS A RESULT OF AN AGREEMENT YESTERDAY BOTH COMPANIES AGREED TO DROP THEIR LITIGATION UNDER THE AGREEMENT WITH ZENITH BUFFALO GROVE ILL ZENITH WILL PAY ROYALTIES TO TEXAS INSTRUMENTS FOR USE OF THE COMPANY'S MICROCOMPUTER SYSTEM PATENTS FURTHER DETAILS WEREN'T DISCLOSED ZENITH IS A UNIT OF FRANCE'S CIE DES MACHINES BULL 9301120051 930112 MARKETSCAN IBUPROFEN'S SUCCESS PAINS ASPIRIN MAKERS BY KATHLENN DEVENY HAVE A HEADACHE TAKE TWO IBUPROFEN AND CALL IN THE MORNING THAT PRESCRIPTION MAY SOON REPLACE THE TIMEWORN ADAGE CALLING FOR ASPIRIN SALES OF IBUPROFEN PAIN RELIEVERS SOLD UNDER SUCH BRAND NAMES AS ADVIL AND MOTRIN IB HAVE BEEN SOARING IN RECENT MONTHS THANKS TO GROWING CONSUMER ACCEPTANCE AND INCREASINGLY AGGRESSIVE MARKETING NOW AFTER ONLY EIGHT YEARS ON THE OVERTHECOUNTER MARKET IBUPROFEN IS POISED TO SURPASS ASPIRIN IN THE 27 BILLION CONSUMER MARKET FOR PAIN RELIEVERS BUT THE NEXT MAJOR SKIRMISH IN THE FIERCELY COMPETITIVE BATTLE OVER WHO WILL SOOTHE AMERICA'S ACHES IS ALREADY SHAPING UP THE PRESCRIPTION DRUG NAPROSYN MARKETED BY A JOINT VENTURE BETWEEN SYNTEX CORP AND PROCTER & GAMBLE CO IS EXPECTED TO RECEIVE APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION SOON FOR SALE DIRECTLY TO CONSUMERS PERHAPS LATER THIS YEAR WIDELY PRESCRIBED FOR ARTHRITIS SUFFERERS NAPROSYN IS LIKELY TO HURT SALES OF IBUPROFEN WHICH IS OFTEN PITCHED AS AN ARTHRITIS TREATMENT FOR NOW THOUGH IBUPROFEN IS GIVING COMPETITORS HEADACHES ESPECIALLY ASPIRIN MAKERS SALES OF IBUPROFEN IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS JUMPED 136 DURING THE 12 WEEKS ENDED DEC 13 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE MEANWHILE SALES OF ACETAMINOPHEN THE ACTIVE INGREDIENT IN JOHNSON & JOHNSON'S TYLENOL INCHED UP 06 AND ASPIRIN SALES DROPPED 2 NEARLY EVERY MAJOR IBUPROFEN BRAND HAS SURGED SALES OF ADVIL WHICH LEADS THE MARKET FOR IBUPROFENBASED PAIN KILLERS WITH A 523 SHARE OF THE CATEGORY INCREASED 15 DURING THE PERIOD ADVIL IS MARKETED BY A UNIT OF AMERICAN HOME PRODUCTS CORP SALES OF MOTRIN IB MARKETED BY UPJOHN CO GREW 137 DURING THE PERIOD AND SALES OF PRIVATELABEL IBUPROFEN WHICH CAN COST 30 TO 50 LESS THAN NATIONALLY ADVERTISED RIVALS SOARED 197 ONE EXCEPTION SALES OF NUPRIN MARKETED BY BRISTOLMYERS SQUIBB CO SLID 121 DURING THE PERIOD EVEN THE COMPANY'S HIGHPROFILE NUPE IT CAMPAIGN STARRING TENNIS VETERAN JIMMY CONNORS FAILED TO STEM THE DECLINE COMPETITORS CITE NUPRIN'S TIGHT FOCUS ON RELIEVING MUSCLE ACHES BECAUSE MANY MORE CONSUMERS GOBBLE PAINKILLERS TO FIGHT HEADACHES AND EASE ARTHRITIS PAIN BRISTOLMYERS ATTRIBUTES NUPRIN'S WEAK SHOWING PARTLY TO REDUCED ADVERTISING SPENDING COMPARED WITH THE PRIOR YEAR THE COMPANY IS COUNTING ON A NEW VERSION OF THE NUPE IT ADS AND INCREASED MEDIA SPENDING IN THE FIRST QUARTER OF 1993 TO REVIVE SALES MARKETERS ATTRIBUTE IBUPROFEN'S OVERALL GROWTH PARTLY TO ITS RELATIVE YOUTH AS AN OVERTHECOUNTER DRUG SOME CONSUMERS APPARENTLY VIEW THE MEDICATION WHICH WAS APPROVED BY THE FDA FOR SALE DIRECTLY TO CONSUMERS IN 1984 AS MORE EFFICACIOUS BECAUSE A PRESCRIPTION VERSION IS STILL AVAILABLE IBUPROFEN ENJOYS A CONSUMER PERCEPTION THAT IT PROVIDES VERY STRONG RELIEF FOR A VARIETY OF PAIN SAYS JEFF NEEDHAM VICE PRESIDENT OF MARKETING FOR PERRIGO CO THE LARGEST MAKER OF PRIVATELABEL IBUPROFEN PRODUCTS THE DRUG HAS ALSO BEEN GETTING A BOOST FROM DEMOGRAPHIC TRENDS AS THE US POPULATION AGES GROWING NUMBERS OF AMERICANS ARE SUFFERING FROM ARTHRITIS PAIN AND POPPING OVERTHECOUNTER PAINKILLERS TO COPE BUT THE BEST EXPLANATION FOR THE GROWTH OF IBUPROFEN MAY BE THAT MARKETERS HAVE STEPPED UP PROMOTIONAL ACTIVITIES TO SECURE THEIR POSITIONS BEFORE THE INTRODUCTION OF NAPROSYN DURING THE FIRST 11 MONTHS OF 1992 FOR EXAMPLE THE FOUR BIGGEST IBUPROFEN BRANDS INCREASED AD SPENDING ON TELEVISION BY 276 ACCORDING TO MEDIAWATCH A JOINT VENTURE BETWEEN ARBITRON CO AND THE DUTCH MEDIA GIANT VNU EVERYONE IS SHORING UP DEFENSE PLANS CONFIRMS BUD MILLIKEN EXECUTIVE DIRECTOR OF MARKETING FOR UPJOHN'S CONSUMERPRODUCTS DIVISION WHICH MARKETS MOTRIN IB THE FEELING IS THAT A SHARE POINT THIS YEAR WILL BE A LOT CHEAPER THAN A SHARE POINT NEXT YEAR AFTER NAPROSYN IS AVAILABLE TO CONSUMERS WITH SALES IN THE TOTAL CONSUMER ANALGESIC MARKET UP ONLY 28 DURING THE CURRENT 12WEEK PERIOD MARKETERS SAY IBUPROFEN'S GAINS HAVE COME MOSTLY AT THE EXPENSE OF ASPIRIN FOR YEARS AMERICANS HAVE BEEN AVOIDING ASPIRIN BECAUSE IT CAN CAUSE STOMACH PROBLEMS IN ADULTS THE MEDICATION HAS ALSO BEEN ASSOCIATED WITH REYE'S SYNDROME IN CHILDREN A POTENTIALLY FATAL AILMENT SO FAR AT LEAST IT APPEARS THAT ASPIRIN MAKERS HAVE HAD LIMITED SUCCESS IN THEIR EFFORTS TO CAPITALIZE ON RESEARCH FINDINGS SUGGESTING THAT ASPIRIN REDUCES THE RISK OF HEART DISEASE ASPIRIN MARKETERS SAY THAT IS PARTLY BECAUSE THEY ARE RESTRICTED IN THEIR EFFORTS TO PROMOTE THEIR PRODUCTS AS HEARTHEALTHY BY THE FDA WHICH HAS TAKEN A DIM VIEW OF ADVERTISEMENTS THAT COULD ENCOURAGE CONSUMERS TO TAKE ASPIRIN WITHOUT CONSULTING A PHYSICIAN ALTHOUGH RECENT RESEARCH SHOWS THAT ASPIRIN MAY BE EVEN MORE EFFECTIVE THAN EARLIER THOUGHT AT PREVENTING FATAL HEARTATTACKS AMONG PEOPLE WITH CARDIAC PROBLEMS ITS ROLE IN HELPING HEALTHY INDIVIDUALS REMAINS UNCLEAR THE AMERICAN HEART ASSOCIATION FOR EXAMPLE STILL CAUTIONS THAT NOT EVERYONE SHOULD USE ASPIRIN REGULARLY AND URGES PEOPLE TO CONSULT THEIR DOCTOR BEFORE ADOPTING SUCH A REGIMEN NONETHELESS ASPIRIN MAKERS MAINTAIN THAT GROWING NUMBERS OF PEOPLE DO TAKE ASPIRIN TO FIGHT CARDIOVASCULAR DISEASE ADDING THAT THE DECLINE OF ASPIRIN MIGHT BE EVEN MORE PRECIPITOUS IF IT WERE ONLY BEING USED AS A GENERAL PAIN RELIEVER DOUG MEYER PRESIDENT OF STERLING HEALTH USA A UNIT OF STERLING WINTHROP INC ESTIMATES THAT CONSUMERS WITH CARDIOVASCULAR CONCERNS NOW ACCOUNT FOR 20 OF BAYER ASPIRIN SALES HE ALSO ATTRIBUTES STRONG SALES OF BAYER'S CHILDREN'S ASPIRIN TO INCREASED CONSUMPTION OF THE PRODUCTS BY ADULTS WHO LIKE ITS CHEWABILITY AND LOWER DOSAGE BUT EVEN THOUGH BAYER'S SHARE OF THE SHRINKING ASPIRIN MARKET CONTINUES TO GROW THE COMPANY IS HEDGING ITS BETS IN SEPTEMBER THE COMPANY LAUNCHED THE BAYER SELECT LINE WHICH INCLUDES ONE IBUPROFENBASED PRODUCT STERLING SAYS IT WILL SPEND 116 MILLION ON ADVERTISING AND PROMOTING THE LINE THE MOST EXPENSIVE PRODUCT LAUNCH IN THE COMPANY'S HISTORY ALSO SMARTING FROM THE CURRENT IBUPROFEN BOOM JOHNSON & JOHNSON THE COMPANY'S TYLENOL BRAND CONTINUES TO DOMINATE THE MARKET FOR ACETAMINOPHEN PRODUCTS BUT IT PULLED ITS MEDIPREN BRAND OF IBUPROFEN OFF RETAILERS' SHELVES EARLIER THIS YEAR AFTER THE PRODUCT POSITIONED AS AN ANTIDOTE FOR MUSCLE ACHE FAILED TO GAIN CONSUMER ACCEPTANCE MEANWHILE SALES OF THE TOTAL TYLENOL BRAND WERE FLAT DURING THE RECENT 12WEEK PERIOD FACTOR OUT SALES FROM RECENTLY INTRODUCED BRAND EXTENSIONS SUCH AS TYLENOL PM AND SALES OF THE CORE TYLENOL FRANCHISE WERE DOWN 7 ENOUGH TO SEND SOME BRAND MANAGERS SCURRYING TO THE MEDICINE CABINET SALES OF IBUPROFENBASED PAIN RELIEVERS INCLUDING ADVIL AND MOTRIN IB HAVE BEEN GROWING FAST WHILE ASPIRIN SALES SUFFER BASED ON SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS DURING THE 12 WEEKS ENDED DEC 13 9301120050 930112 WHO'S NEWS SHEARSON NAMES FULD HILL TO NEW OFFICE OF CHAIRMAN IN WIDE REORGANIZATION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHEARSON LEHMAN BROTHERS INC THE NATION'S SECOND LARGEST BROKERAGE FIRM ANNOUNCED A SWEEPING REORGANIZATION AIMED AT BOLSTERING ITS MANAGEMENT AND EARNINGS THE AMERICAN EXPRESS CO UNIT APPOINTED RICHARD S FULD JR AND J TOMILSON HILL TO THE NEW POSTS OF COPRESIDENTS AND COCHIEF OPERATING OFFICERS OF SHEARSON LEHMAN BROTHERS HOLDINGS INC THE BROKERAGE FIRM'S HOLDING COMPANY MESSRS HILL AND FULD WILL REPORT TO HOWARD L CLARK JR SHEARSON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AS PART OF A NEWLY CREATED OFFICE OF THE CHAIRMAN AT THE SAME TIME SHEARSON WILL BE REORGANIZED INTO THREE OPERATING UNITS ITS LEHMAN BROTHERS INVESTMENT BANKING AND TRADING DIVISION WILL BE RUN BY MANAGING PARTNER T CHRISTOPHER PETTIT AND SHEARSON'S FLAGSHIP BROKERAGE AND ASSETMANAGEMENT DIVISION WILL NOW BE SPLIT INTO TWO SEPARATE DIVISIONS RUN BY JOSEPH PLUMERI AND JOHN R LAIRD RESPECTIVELY THE MOVES REFLECT THE CONTINUING EFFORTS OF AMERICAN EXPRESS TO BEEF UP ITS SHEARSON UNIT BY PUTTING TWO OF ITS MOST EXPERIENCED EXECUTIVES AT THE HOLDING COMPANY LEVEL THIS IS LIKELY TO MAKE IT EASIER TO SHED ITS SHEARSON STAKE AS REPORTED SHEARSON OFFICIALS HAVE PREPARED A PLAN THAT WOULD ALLOW AMERICAN EXPRESS TO SLASH ITS SHEARSON OWNERSHIP BELOW 50 BY SELLING PART OF THE BIG BROKERAGE FIRM TO THE PUBLIC PEOPLE FAMILIAR WITH THE PROPOSAL SAID THE REORGANIZATION HAS GOT NOTHING WHATSOEVER TO DO WITH ANY PUBLIC OFFERING OR WHATEVER SAID MR CLARK IT'S MERELY THAT I DECIDED I WANTED TO BROADEN THE LEADERSHIP AT THE TOP OF THE COMPANY THERE'S NOTHING MORE TO IT THAN THAT SHEARSON HAS DECLINED TO COMMENT ON ANY TALK OVER A PLANNED PUBLIC OFFERING THE MOVES REDUCE SOME OF MR CLARK'S RESPONSIBILITIES MESSRS HILL 44 YEARS OLD AND FULD 46 ESSENTIALLY WILL TAKE OVER SHEARSON'S DAYTODAY OPERATIONS ALLOWING MR CLARK 48 TO FOCUS ON FIRMWIDE STRATEGY MESSRS HILL AND FULD ALSO CONTINUE TO BE COCHIEF EXECUTIVES OF THE LEHMAN BROTHERS DIVISION MR CLARK SAID THE APPOINTMENTS DON'T FOR A SECOND DIMINISH HIS ROLE THERE'S ONE CHAIRMAN AND ONE CHIEF EXECUTIVEAND THAT'S ME HE ADDED HAVING MORE CENTRALIZED MANAGEMENT CAN ONLY HELP SHEARSON AND HIMSELF MEANWHILE THE APPOINTMENTS OF MESSRS HILL AND FULD TO ASSIST MR CLARK ALSO CONTINUE WHAT SHEARSON INSIDERS CALL THE AMEXIZATION OF THE BIG BROKERAGE FIRM BY EMULATING AMERICAN EXPRESS'S OFFICE OF THE CHAIRMAN SHEARSON'S BROKERAGE OPERATIONS WILL BE CALLED SHEARSON LEHMAN BROTHERS ITS MANAGING PARTNER WILL BE MR PLUMERI AND ITS BIG ASSETMANAGEMENT DIVISION WHICH MANAGES 55 BILLION OF ASSETS WILL NOW BE A FREESTANDING OPERATION CALLED SLB ASSET MANAGEMENT MR LAIRD FORMER CHIEF EXECUTIVE OF THE ENTIRE SHEARSON BROKERAGE AND MONEYMANAGEMENT UNIT WILL BE THE DIVISION'S MANAGING PARTNER MR CLARK SAID BREAKING OUT THE ASSETMANAGEMENT DIVISION WILL FOCUS MORE ATTENTION ON THAT BUSINESS IT'S NOT THAT IT'S BROKEN OR ANYTHING LIKE THAT IT'S DOING JUST FINE SAID MR CLARK SHEARSON OFFICIALS HOPE THE MOVES WILL HELP PUMP UP EARNINGS WHICH DESPITE SOME INROADS HAVE LAGGED BEHIND THOSE OF ITS BIG BROKERAGEFIRM RIVALS THROUGH 1992'S FIRST NINE MONTHS SHEARSON HAS POSTED NET INCOME OF JUST 43 MILLION AFTER AGGREGATE CHARGES OF 245 MILLION FROM SOURED INVESTMENTS EVEN AS SEVERAL OTHER WALL STREET BROKERAGE FIRMS REPORTED RECORD EARNINGS FOR ALL OF 1991 SHEARSON HAD NET OF 207 MILLION AFTER AGGREGATE CHARGES OF 203 MILLION 9301120049 930112 BUSINESS BRIEF SOUTHWESTERN PROPERTY TRUST INC COMPANY AGREES TO PURCHASE BUILDINGS GETS CREDIT LINE SOUTHWESTERN PROPERTY TRUST INC DALLAS SAID IT AGREED TO ACQUIRE APARTMENT BUILDINGS IN TEXAS FOR 191 MILLION AND OBTAINED A NEW 125 MILLION REVOLVING CREDIT LINE THE REAL ESTATE INVESTMENT TRUST SAID IT WILL ACQUIRE THE FIRST MORTGAGE LOAN ON THE 444UNIT WINDRIDGE APARTMENTS IN DALLAS IN WHICH IT HOLDS A MAJORITY INTEREST FOR 102 MILLION THE LOAN YIELDS A MINIMUM OF 98 ANNUALLY AND INCLUDES PROVISIONS FOR PARTICIPATION IN APPRECIATION OF THE PROPERTY'S VALUE SOUTHWESTERN SAID THE COMPANY ALSO AGREED TO BUY THE BRIDGEPORT APARTMENTS IN IRVING TEXAS FOR 61 MILLION FROM UNIVERSITY PORTFOLIO ACQUISITION CORP AND INVESTED 28 MILLION TO INCREASE ITS OWNERSHIP INTEREST IN FOUR PROPERTIES IN DALLAS AND SAN ANTONIO SOUTHWESTERN SAID IT ARRANGED THE NEW CREDIT LINE WITH DALLASBASED AMERICAN FEDERAL BANK TO FACILITATE ADDITIONAL INVESTMENTS IN APARTMENTS IN THE SOUTHWEST THE COMPANY SAID THE CREDIT LINE MAY BE INCREASED TO 15 MILLION 9301120048 930112 BUSINESS BRIEF MORGAN'S FOODS INC SHARE OFFER PLANNED TO FUND PRIME RESTAURANT PURCHASE MORGAN'S FOODS INC BEACHWOOD OHIO SAID IT WILL OFFER 75 MILLION COMMON SHARES IN THE NEXT THREE MONTHS TO RAISE MONEY FOR ITS PROPOSED ACQUISITION OF PRIME RESTAURANT GROUP MORGAN'S STOCK CLOSED AT 18125 UP 1875 CENTS IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY PRIME RESTAURANT OWNS AND OPERATES FOUR RESTAURANTS AND FRANCHISES 71 RESTAURANTS UNDER FOUR NAMES INCLUDING EAST SIDE MARIO'S FOR WHICH MORGAN'S IS THE EXCLUSIVE FRANCHISEE IN OHIO MORGAN'S SIGNED A LETTER OF INTENT TO ACQUIRE PRIME RESTAURANT GROUP IN JUNE 1992 THE TWO COMPANIES ARE STILL TRYING TO COMPLETE A DEFINITIVE PURCHASE AGREEMENT MORGAN'S IS A FRANCHISEE OF 72 KFC RESTAURANTS IN SIX STATES AS OF DEC 16 IT HAD ABOUT 178 MILLION SHARES OUTSTANDING 9301120047 930112 BUSINESS BRIEF COMPAQ COMPUTER CORP SECOND MANUFACTURING LINE TO BOOST PROLINEA OUTPUT COMPAQ COMPUTER CORP SAID IT IS ADDING A SECOND HIGHVOLUME MANUFACTURING LINE AT ITS HOUSTON HEADQUARTERS TO BOOST PRODUCTION OF ITS NEW PROLINEA LINE OF PERSONAL COMPUTERS THE TEXAS COMPANY HAS BEEN PLAGUED BY SUPPLY SHORTAGES IN ITS PROLINEA LINE INTRODUCED IN JUNE AS PART OF A SHIFT IN COMPAQ'S STRATEGY TOWARD BARGAINPRICED ENTRYLEVEL MACHINES THOUGH COMPAQ DIDN'T DISCLOSE PRODUCTION NUMBERS IT SAID THE NEW LINE IS BUILT TO PRODUCE ONE PROLINEA COMPUTER EVERY 60 SECONDS COMPAQ SAID THE PROLINEA LINE HAS BECOME THE BESTSELLING IN THE HISTORY OF THE 10YEAROLD COMPANY COMPAQ ALREADY IS RUNNING ITS HOUSTON AND SINGAPORE PLANTS 24 HOURS A DAY TO MEET PROLINEA DEMAND AND A THIRD FACILITY IN SCOTLAND IS RUNNING TWO SHIFTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY COMPAQ CLOSED AT 5050 UP 225 9301120046 930112 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 8 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER FARMINGTON NM WILL REDEEM ON JAN 28 1993 THE FOLLOWING POLLUTION CONTROL REVENUE BONDS 6 7/8 SERIES 1976 DUE APRIL 1 2006 AND 8 AND 8 1/8 1980 SERIES A BONDS DUE JUNE 1 2000 AND 2010 RESPECTIVELY FIRST NATIONAL BANK IN ALBUQUERQUE ALBUQUERQUE NM IS TRUSTEE LAKEWOOD OHIO WILL REDEEM ON FEB 1 1993 THE FOLLOWING 1983 SERIES A HOSPITAL IMPROVEMENT REVENUE BONDS DUE FEB 1 OF THE INDICATED YEARS 875 DUE 1994 9 DUE 1995 92 DUE 1996 975 DUE 2002 AND 9875 DUE 2014 NATIONAL CITY BANK CLEVELAND IS TRUSTEE MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON FEB 1 1993 450000 PRINCIPAL AMOUNT OF ITS 925 SERIES A BEARER AND REGISTERED BONDS DUE AUG 1 2000 SHAWMUT BANK BOSTON IS TRUSTEE MONTREAL URBAN COMMUNITY WILL REDEEM ON FEB 15 1993 2400000 PRINCIPAL AMOUNT OF ITS 10 SINKING FUND DEBENTURES DUE FEB 15 2000 FIRST INTERSTATE TRUST CO OF NEW YORK IS SINKING FUND AGENT NEW CASTLE COUNTY DEL WILL REDEEM ON JAN 28 1993 ITS 1980 SERIES B SINGLE FAMILY MORTGAGE REVENUE BONDS WILMINGTON TRUST CO WILMINGTON DEL IS TRUSTEE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 1 1993 ITS 10 FIRST MORTGAGE PARKING REVENUE BONDS DUE JULY 1 2010 FIRST FIDELITY BANK PHILADELPHIA IS TRUSTEE ORANGE COUNTY WILL REDEEM ON FEB 1 1993 3570000 PRINCIPAL AMOUNT OF THE FOLLOWING 1980 SINGLE FAMILY HOUSING REVENUE BEARER AND REGISTERED BONDS 9 DUE AUG 1 1993 925 DUE AUG 1 1998 95 DUE AUG 1 2012 BANK OF AMERICA LOS ANGELES IS TRUSTEE POWDERLY KY INDUSTRIAL BOARD WILL REDEEM ON FEB 1 1993 ITS 115 REVENUE BONDS 1981 SERIES A DUE MARCH 1 2007 THIRD NATIONAL BANK NASHVILLE TENN IS TRUSTEE SALYERSVILLE KY WILL REDEEM ON FEB 1 1993 ITS SERIES 1978 MEDICAL FACILITIES REVENUE BONDS FIRST NATIONAL BANK OF HENDERSON HENDERSON KY IS PAYING AGENT CORP WILL REDEEM ON FEB 1 1993 THE FOLLOWING 1978 SERIES B GUARANTEED POLLUTION CONTROL REVENUE BONDS 64 DUE AUG 1 1993 65 DUE FEB 1 AND AUG 1 1994 66 DUE FEB 1 AND AUG 1 1995 665 DUE FEB 1 AND AUG 1 1996 67 DUE FEB 1 AND AUG 1 1997 675 DUE AUG 1 1998 AND FEB 1 1998 AND 1999 AND 7 DUE AUG 1 2008 MORGAN GUARANTY TRUST CO OF NEW YORK IS TRUSTEE VANCEBURG KY WILL REDEEM ON FEB 1 1993 ITS FIRST MORTGAGE MEDICAL FACILITIES REVENUE BONDS FIRST NATIONAL BANK OF HENDERSON HENDERSON KY IS PAYING AGENT WINNIPEG WILL REDEEM ON MARCH 1 1993 ITS 9 1/4 DEBENTURES DUE MARCH 1 1996 BANK OF MONTREAL TRUST CO NEW YORK IS TRUSTEE PHILADELPHIA ELECTRIC CO WILL REDEEM ON FEB 1 1993 UP TO 8000 SHARES OF ITS 700 PREFERRED STOCK 9301120045 930112 TECHNOLOGY BRIEF PLANT GENETICS SYSTEMS NV FIRM RECEIVES US PATENT COVERING PLANT TECHNOLOGY PLANT GENETICS SYSTEMS NV SAID IT HAS BEEN GRANTED THE FIRST US PATENT COVERING TECHNOLOGY THAT ALLOWS GENETIC ENGINEERS TO CREATE INSECTTOLERANT PLANTS PLANT GENETICS BASED IN GHENT BELGIUM IS ONE OF SEVERAL LEADING COMPANIES IN DEVELOPING WAYS TO SPLICE GENES INTO PLANTS THAT WOULD KILL OR OTHERWISE DETER PESTS THE COMPANY SAID THE PATENT COVERS A PROCESS FOR BUILDING INTO PLANTS CERTAIN SOIL BACTERIA PROTEINS THAT POISON CATERPILLARS WHOSE FEASTING ON CERTAIN PLANTS AND CROPS CAN CAUSE MAJOR DAMAGE MONSANTO CORP AND CROP GENETICS INTERNATIONAL INC AMONG OTHERS ARE ALSO WORKING IN THE FIELD OF BIOENGINEERING INSECTRESISTANT PLANTS OR ISOLATING SOIL PROTEINS FOR USE IN PEST CONTROL THE FIELD IS A POTENTIAL POT OF GOLD DEMAND FOR INSECTTOLERANT PLANTS WOULD BE POTENTIALLY HUGE BECAUSE THEY COULD END THE USE OF SOME ENVIRONMENTALLY DAMAGING PESTICIDES AND REDUCE CROP LOSSES HOWEVER DEVELOPMENT OF THE PRODUCTS FACES SOME OF THE SAME OPPOSITION FROM PUBLIC INTEREST GROUPS THAT HAS COMPLICATED DEVELOPMENT OF OTHER GENETICALLY ENGINEERED PRODUCTS 9301120044 930112 CML GROUP IN TALKS FOR ASSETS ACTON MASS CML GROUP INC SAID IT'S NEGOTIATING WITH SMITH & HAWKEN LTD TO ACQUIRE CERTAIN ASSETS OF THE COMPANY'S CATALOG GARDENING BUSINESS FOR ABOUT 15 MILLION IF A DEAL IS REACHED THE BUSINESS WOULD BE MANAGED BY NATURE CO A CML UNIT THE COMPANY SAID SMITH & HAWKEN A CLOSELY HELD GARDENING AND CLOTHING CONCERN IS BASED IN MILL VALLEY CALIF 9301120043 930112 BUSINESS BRIEF CEPHALON INC COMPANY IS CLEARED TO START HUMAN TESTING OF A DRUG CEPHALON INC WEST CHESTER PA SAID IT RECEIVED GOVERNMENT APPROVAL TO BEGIN ADVANCED HUMAN TESTS OF A DRUG FOR AMYOTROPHIC LATERAL SCLEROSIS A PROGRESSIVE NERVE DISORDER ALSO KNOWN AS LOU GEHRIG'S DISEASE CEPHALON A PUBLICLY TRADED BIOTECHNOLOGY COMPANY SAID THE FOOD AND DRUG ADMINISTRATION GAVE IT THE GOAHEAD TO TEST ITS DRUG MYOTROPHIN IN ABOUT 200 PATIENTS AT SEVERAL CLINICS IN THE US MYOTROPHIN IS CEPHALON'S VERSION OF A NATURAL PROTEIN CALLED IGF1 THAT PROMOTES NERVE GROWTH WITHIN THE BODY IN LABORATORY STUDIES CEPHALON SHOWED THAT IGF1 CAN FOSTER THE SURVIVAL AND REGROWTH OF CERTAIN NERVE CELLS INVOLVED IN MUSCLE CONTROL THERE CURRENTLY IS NO USEFUL TREATMENT FOR ALS A LETHAL ILLNESS AFFECTING ABOUT 25000 TO 30000 AMERICANS CEPHALON WHICH SPECIALIZES IN DEVELOPING DRUGS FOR A VARIETY OF NERVOUS SYSTEM DISEASES HOPES MYOTROPHIN CAN SOMEWHAT SLOW THE STEADY PROGRESS OF THE DISEASE THE DRUG DOES NOT AFFECT THE CAUSE OF THE DISEASE WHICH IS UNKNOWN IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CEPHALON SHARES CLOSED AT 1475 UP 75 CENTS 9301120042 930112 OIL COMPANIES TO PAY 77 MILLION TO SETTLE STATES' COLLUSION SUIT LOS ANGELES THREE LARGE OIL COMPANIES AGREED TO PAY 77 MILLION TO FOUR WESTERN STATES IN A SETTLEMENT OF A 1975 LAWSUIT THAT ACCUSED THEM OF CONSPIRING TO FIX GASOLINE PRICES THE SETTLEMENT WITH CHEVRON CORP MOBIL CORP'S MOBIL OIL UNIT AND SHELL OIL CO A UNIT OF ROYAL DUTCH/SHELL GROUP INC AVERTS WHAT COULD HAVE BEEN A LONG AND COSTLY TRIAL SET TO BEGIN NEXT MONTH THE SUIT FILED BY CALIFORNIA CLAIMED THE COMPANIES CONSPIRED TO CREATE A GASOLINE SHORTAGE AND THEN RAISED PRICES AT THE PUMP THE CALIFORNIA CASE WAS CONSOLIDATED WITH SIMILAR SUITS FILED BY ARIZONA WASHINGTON AND OREGON UNDER THE SETTLEMENT CHEVRON WILL PAY THE STATES 294 MILLION MOBIL WILL PAY 143 MILLION AND SHELL 218 MILLION THE PAYMENTS ARE BASED ON A ROUGH APPROXIMATION OF EACH COMPANY'S MARKET SHARE IN EACH STATE IT'S UP TO THE FEDERAL JUDGE IN LOS ANGELES WHO IS HEARING THE CASE TO DECIDE HOW THE MONEY WILL BE USED OR SPLIT BUT CALIFORNIA EXPECTS TO GET THE BULK OF THE SETTLEMENT BECAUSE IT HAS PAID MUCH OF THE LEGAL FEES IN THE CASE THE THREE COMPANIES ALSO WILL ISSUE 115 MILLION IN GASOLINE PURCHASE COUPONS TO CERTAIN BUSINESS IN THE FOUR STATES CHEVRON IS DELIGHTED THAT THE CASE HAS ENDED SAID CHARLES RENFREW VICE PRESIDENT FOR LAW ADDING THAT IT WAS PRUDENT TO SETTLE THE CASE GIVEN THE FINANCIAL RISKS OF A TRIAL SIMILARLY A MOBIL SPOKESMAN SAID WHILE WE KNOW THAT WE HAVE NOT VIOLATED THE LAW THE RISK OF GOING TO TRIAL AND THE PROSPECT OF THE ASSOCIATED EXPENSE HAS CAUSED US TO CONCLUDE THAT IT IS TIME TO PUT AN END TO IT SHELL MAINTAINS THAT ITS PRACTICES WERE IN COMPLIANCE WITH THE LAW SEVEN OTHER MAJOR OIL COMPANIES HAD BEEN NAMED AS DEFENDANTS BUT THE FOUR STATES HAVE SETTLED WITH THEM OVER THE PAST SEVERAL YEARS FOR ABOUT 74 MILLION 9301120041 930112 DATA RACE ENDS TALKS ON LICENSING SPECTRUM INFORMATION PATENTS SAN ANTONIO TEXAS DATA RACE INC SAID IT BROKE OFF DISCUSSIONS WITH SPECTRUM INFORMATION TECHNOLOGIES INC ON A PROPOSAL TO LICENSE PATENTS FOR A CABLE MADE BY SPECTRUM THAT CONNECTS COMPUTERS TO CELLULAR TELEPHONES A SPOKESMAN FOR DATA RACE A MODEM MAKER SAID THAT SPECTRUM'S DEMANDS FOR ROYALTIES AND OTHER PAYMENTS WERE TOO LARGE FOR THE COMPANY TO REMAIN COMPETITIVE IN THAT MARKET LATE LAST YEAR DATA RACE SIGNED A LETTER OF INTENT TO OBTAIN THE PATENT LICENSES DATA RACE SAID THAT IT BELIEVES A BETTER METHOD FOR MOBILE COMPUTERS TO SEND DATA OVER CELLULAR TELEPHONE NETWORKS CAN BE DEVELOPED AT A LOWER COST AND THAT IT HAS CONTACTED OTHER PROVIDERS OFFICIALS OF SPECTRUM A TELECOMMUNICATIONS AND COMPUTER COMPANY BASED IN MANHASSET NY COULDN'T BE REACHED FOR COMMENT AS PREVIOUSLY REPORTED SPECTRUM FILED A LAWSUIT LAST FALL ALLEGING THAT DATA RACE INFRINGED SPECTRUM'S PATENTS DATA RACE DENIED THE CHARGE AND FILED ITS OWN PETITION SEEKING A DECLARATORY JUDGMENT THAT IT HASN'T VIOLATED THE PATENTS 9301120040 930112 FOREIGN EXCHANGE DOLLAR DRIFTS IN GENERALLY LOWER RANGE DESPITE RENEWED UNIRAQ TENSIONS BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK RENEWED TENSIONS BETWEEN THE UNITED NATIONS AND IRAQ WEREN'T ENOUGH TO HELP THE DOLLAR RECOVER MUCH FROM AN EARLY SELLOFF MONDAY DEALERS SAID LACKING A CLEAR DIRECTION THE MARKET KEPT THE DOLLAR TO NARROW BUT LOWER TRADING RANGES FOR MOST OF THE DAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16330 MARKS DOWN FROM 16465 MARKS LATE FRIDAY AND AT 12515 YEN OFF FROM 12535 YEN STERLING WAS TRADING AT 15540 UP FROM 15420 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 16337 MARKS AND AT 12516 YEN WE REALLY HAVEN'T SEEN I WOULD SAY ANY EXTRAORDINARY PRESSURE ON EITHER SIDE OF THE MARKET SAID JAMES MCGROARTY SENIOR VICE PRESIDENT IN FOREIGN EXCHANGE AT GREENWICH CAPITAL MARKETS THE DOLLAR DROPPED IN AUSTRALASIAN TRADING MONDAY DEALERS SAID AS PLAYERS RESPONDED TO THE WEEKEND NEWS THAT IRAQ APPEARED TO HAVE BACKED DOWN IN ITS LATEST BATTLE OF NERVES WITH THE UN INVESTORS BID UP THE DOLLAR FRIDAY AS A UN ULTIMATUM TO IRAQ EXPIRED BUT BY SATURDAY IRAQ APPEARED TO HAVE GIVEN IN MOVING ITS ANTIAIRCRAFT MISSILES FROM THE UNIMPOSED NOFLY ZONE IN SOUTHERN IRAQ SELLERS PUSHED THE DOLLAR DOWN EARLY MONDAY TO AROUND 16250 MARKS A TECHNICAL SUPPORT LEVEL DEALERS SAID AND PLAYERS WHO EXPECT THE DOLLAR TO GO HIGHER IN THE NEXT FEW MONTHS STEPPED IN TO BUY DESPITE ITS FIRM UNDERTONE THE DOLLAR COULDN'T CAPITALIZE ON NEWS OF FURTHER TROUBLES BETWEEN THE UN AND IRAQ DEALERS SAID IRAQ APPEARED TO BE TESTING THE UN'S RESOLVE SUNDAY AND MONDAY BY SENDING RAIDING PARTIES ACROSS KUWAIT'S BORDER TO CAPTURE MISSILES AND DISMANTLE A WAREHOUSE BUT WITH THE MARKET UNCERTAIN ABOUT THE UN'S RESPONSE THE SECURITY COUNCIL WAS STILL MEETING AS NEW YORK DEALINGS WOUND DOWN AND PLAYERS GROWING INCREASINGLY INURED TO THE CRISIS DEALERS SAID THE DOLLAR BENEFITED LITTLE FROM THE REPORTS EACH NEW HEADLINE IS GOING TO HAVE LESS AND LESS IMPACT MR MCGROARTY SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN IN NEW YORK SAID THE DOLLAR ALSO SUFFERS FROM FEARS ABOUT THE IMPACT THAT FIGHTING IN THE MIDDLE EAST COULD HAVE ON THE US ECONOMY ONE OF THE THINGS THE MARKET HAS TO BE CONCERNED ABOUT IS THAT IF HOSTILITIES WERE TO BREAK OUT BETWEEN THE US AND IRAQ YOU HAVE SOME RISK TO THE ECONOMY MR PETTIT SAID HE SAID THE AFTERMATH OF THE PERSIAN GULF WAR STIFLED CONSUMER SPENDING IN THE US IN 1991 DELAYING THE ECONOMIC RECOVERY THE ECONOMY REALLY CAN'T AFFORD FOR THAT TO HAPPEN AT THIS POINT HE SAID BUT WITH NO CLEAR SIGN OF HOW SERIOUS THIS LATEST CRISIS WILL BE PLAYERS SAID INVESTORS ARE WAITING FOR SIGNS OF A UN RESPONSE TO IRAQ'S INCURSIONS BEFORE SELLING THE DOLLAR HEAVILY PARTICIPANTS SAID ANOTHER FACTOR SUPPORTING THE DOLLAR AGAINST THE MARK MONDAY WAS STERLING'S STEADY CLIMB AGAINST THE GERMAN CURRENCY LATE MONDAY IN NEW YORK THE POUND WAS QUOTED AT 25369 MARKS UP FROM 25224 MARKS LATE FRIDAY 9301120039 930112 BUSINESS BRIEF COLTEC INDUSTRIES INC CALIFORNIA FACILITY IS SLATED FOR CLOSING ENDING 310 JOBS COLTEC INDUSTRIES INC SAID IT WILL CLOSE ITS AIRCRAFT LANDING GEARMANUFACTURING PLANT IN BURBANK CALIF AND DISMISS 310 WORKERS COLTEC A NEW YORK MANUFACTURER OF AEROSPACE AUTOMOTIVE AND INDUSTRIAL PRODUCTS SAID THE SHUTDOWN WAS PROMPTED BY DECLINING COMMERICAL AIRCRAFT ORDERS AND THE REDUCTION IN DEFENSE SPENDING THE COMPANY WILL CONTINUE TO MAKE LANDING GEAR AT PLANTS IN FORT WORTH TEXAS AND OAKVILLE ONTARIO COLTEC WHICH HAD 14 BILLION IN SALES IN 1991 SAID LANDING GEAR ACCOUNTED FOR 14 OF TOTAL SALES THE COMPANY SAID THE REMAINING PLANTS WOULD HAVE SUFFICIENT CAPACITY TO ABSORB INCREASED PRODUCTION FORECAST FOR LATER IN THE DECADE 9301120038 930112 TECHNOLOGY BRIEF AUDRE RECOGNITION SYSTEMS INC AGREEMENTS TO EXPAND SALES TO DEFENSE PRINTING SERVICE AUDRE RECOGNITION SYSTEMS INC SAID IT SIGNED AGREEMENTS THAT WILL SUBSTANTIALLY EXPAND ITS SALES TO THE FEDERAL DEFENSE PRINTING SERVICE THE SAN DIEGOBASED DEVELOPER OF ARTIFICIALINTELLIGENCE SOFTWARE SAID THAT AS A SUBCONTRACTOR TO EASTMAN KODAK CO OF ROCHESTER NY IT WILL PROVIDE SOFTWARE AND SERVICES THROUGH AN AUTOMATED DOCUMENT MANAGEMENT & PUBLISHING SYSTEM CONTRACT THE SYSTEMS WILL ENABLE GOVERNMENT COMPUTERS TO SCAN AND ABSORB LARGE VOLUMES OF PRINTED INFORMATION ENGINEERING DRAWINGS AND TECHNICAL DOCUMENTS FOR COMPUTER STORAGE AND RETRIEVAL IN THE YEAR ENDED APRIL 30 AUDRE REPORTED 845000 IN SALES A DEFENSE PRINTING SERVICE OFFICIAL ESTIMATED THAT AUDRE COULD REASONABLY EXPECT TO WIN AT LEAST A FOUR OF A TOTAL 120 MILLION IN CONTRACT AWARDS DURING THE NEXT FIVE YEARS IN ADDITION HE SAID THE COMPANY STANDS TO WIN SUBSTANTIAL SERVICE CONTRACTS IN THE PERIOD 9301120037 930112 MARKETING & MEDIA FOX INC TAPS HINTON AT NEWS CORP TO HEAD ITS TV AND NEWS UNITS LOS ANGELES FOX INC BROUGHT IN LONGTIME NEWS CORP PUBLISHING EXECUTIVE LES HINTON TO OVERSEE THE FOX TELEVISION STATIONS AND FOX NEWS MR HINTON 48 YEARS OLD WHOSE TITLE WILL BE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE SEVENSTATION GROUP FOX TELEVISION STATIONS INC IS A CLOSE ALLY OF FOX INC CHAIRMAN RUPERT MURDOCH AND FORMER EDITOR OF THE STAR TABLOID MAGAZINE FOX INC IS A UNIT OF NEWS CORP SYDNEY AUSTRALIA SINCE 1991 HE HAS BEEN HEAD OF FOX'S SISTER OPERATION NEWS AMERICA PUBLISHING WHICH PUBLISHES TV GUIDE AND THE BOSTON HERALD AND MANAGES A CENTSOFF COUPON PUBLISHING OPERATION REPORTING TO MR HINTON WILL BE MITCHELL STERN WHO WAS PROMOTED TO PRESIDENT AND CHIEF OPERATING OFFICER OF THE FOX TELEVISION STATIONS FROM EXECUTIVE VICE PRESIDENT MR STERN WILL CONTINUE TO RUN THE DAYTODAY OPERATIONS OF THE STATIONS FOX NEWS PRESIDENT VAN GORDON SAUTER WILL ALSO REPORT TO MR HINTON THE APPOINTMENT IS THE LATEST IN A SERIES OF MAJOR EXECUTIVE CHANGES AT FOX SINCE MR MURDOCH TOOK OVER FROM BARRY DILLER LAST YEAR LAST WEEK LUCIE SALHANY WAS NAMED PRESIDENT OF THE FOX BROADCASTING CO SUCCEEDING JAMIE KELLNER WHO RESIGNED 9301120036 930112 BUSINESS BRIEF MORRISON RESTAURANTS INC NEGOTIATIONS ON ACQUISITION OF UNO RESTAURANT ENDED MORRISON RESTAURANTS INC SAID IT ENDED TALKS TO ACQUIRE UNO RESTAURANT CORP IN AN TRANSACTION VALUED AT ABOUT 100 MILLION THE COMPANIES SIGNED A LETTER OF INTENT DEC 7 UNDER WHICH MORRISON PLANNED TO PAY ONE SHARE OF ITS STOCK FOR EACH 25 SHARES OF UNO WHICH THEN HAD 89 MILLION SHARES OUTSTANDING BY LATE DECEMBER HOWEVER MORRISON'S PLAN WAS PUT ON HOLD AS THE TWO COMPANIES CONTINUED TALKS UNO'S FEELING THAT MORRISON WAS STALLING LED TO TERMINATION OF THE TALKS SAID BOB BROWN UNO CHIEF FINANCIAL OFFICER IT REALLY WASN'T AN ISSUE OF PRICE SAID MR BROWN THEY REALLY WANTED TO SLOW THE PROCESS DOWN MR BROWN SAID MORRISON WANTED TO TAKE UP TO ANOTHER 90 DAYS TO CLOSE THE DEAL IT SEEMS TO ME THAT IF YOU'RE LOOKING TO CONSUMMATE A TRANSACTION YOU GO FORWARD WITH IT HE SAID SANDY BEALL MORRISON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WASN'T AVAILABLE FOR COMMENT MORRISON BASED IN MOBILE ALA OWNS CASUALDINING RESTAURANTS AND IS IN THE CONTRACT RESTAURANT BUSINESS UNO BASED IN WEST ROXBURY MASS OPERATES AND FRANCHISES CASUAL EATERIES NAMED PIZZERIA UNO RESTAURANT AND BAR 9301120035 930112 BUSINESS BRIEF ADVANCED INTERVENTIONAL SYSTEMS LASER PRODUCT MAKER SETTLES PATENT DISPUTE WITH PILLCO ADVANCED INTERVENTIONAL SYSTEMS INC SAID IT AGREED TO PAY STOCK CASH AND ROYALTIES TO PILLCO LP TO SETTLE A PATENT DISPUTE INVOLVING THE COMPANY'S MEDICAL LASER PRODUCT THE AMOUNT WASN'T DISCLOSED UNDER THE SETTLEMENT THE IRVINE CALIF COMPANY OBTAINED A NONEXCLUSIVE LICENSE TO CERTAIN PATENTS HELD BY THE MCLEAN VA PARTNERSHIP THE COMPANY SAID IT WILL PAY PILLCO ROYALTIES BASED ON A PERCENTAGE AFTER CERTAIN EXPENSES OF ITS LASER SALES SPECIFIC TERMS OF THE AGREEMENT WEREN'T DISCLOSED WE FEEL WE HAVE A VERY REASONABLE SETTLEMENT THAT WON'T REQUIRE ANY MAJOR ADJUSTMENTS TO OUR FINANCIAL PLAN SAID ROBERT E WALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE A YEAR AGO TO SELL ITS LASER SYSTEM FOR USE IN CLEARING BLOCKAGE IN CORONARY ARTERIES THE COMPANY WENT PUBLIC IN NOVEMBER 1991 9301120034 930112 BUSINESS BRIEF MEDICAL CARE AMERICA INC COMPANY EXPECTS TO POST DROP IN 4THQUARTER PROFIT MEDICAL CARE AMERICA INC STILL STINGING FROM A SLIDE IN ITS HOMEINFUSION BUSINESS SAID FOURTHQUARTER EARNINGS BEFORE CERTAIN EXPENSES WERE 10 TO 15 BELOW ITS PROFORMA EARNINGS OF 52 CENTS A SHARE A YEAR EARLIER THE DALLAS HEALTH CARE PROVIDER FORMED IN SEPTEMBER IN A MERGER BETWEEN MEDICAL CARE INTERNATIONAL INC AND CRITICAL CARE AMERICA INC SAID IT EXPECTS TO REPORT A 15 TO 20 RISE IN FOURTHQUARTER REVENUE FROM PROFORMA REVENUE OF 145 MILLION A YEAR EARLIER ITS 1991 FOURTHQUARTER EARNINGS TOTALED 186 MILLION THE PROJECTION LARGELY IN LINE WITH ANALYSTS' ESTIMATES HAD LITTLE IMPACT ON THE COMPANY'S STOCK WHICH CLOSED YESTERDAY AT 23125 UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR THE YEAR THE COMPANY EXPECTS TO REPORT A 10 RISE IN PERSHARE EARNINGS FROM 1991 PROFORMA EARNINGS OF 175 A SHARE AND A 20 INCREASE IN REVENUE FROM 522 MILLION IN 1991 THE 1992 ESTIMATES ARE BEFORE MERGER AND RESTRUCTURING EXPENSES OF 6 MILLION OR 10 CENTS A SHARE IN THE FOURTH QUARTER AND 36 MILLION OR 73 CENTS A SHARE FOR THE YEAR 9301120033 930112 COMMODITIES LIVESTOCK FUTURES PRICES SOAR AS WINTER STORM THREATENS HERDS IN MIDWEST AND PLAINS STATES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO A WINTER STORM BLOWING INTO THE MIDWEST AND PLAINS STATES PUSHED LIVESTOCK FUTURES PRICES SHARPLY HIGHER AT THE CHICAGO MERCANTILE EXCHANGE HOG AND PORKBELLY CONTRACTS FOR FEBRUARY SOARED BY THEIR DAILY LIMITS HOGS FOR FEBRUARY DELIVERY ROSE 15 CENTS TO 4465 CENTS A POUND WHILE FEBRUARY PORK BELLIES WERE UP TWO CENTS TO 3980 CENTS A POUND CATTLE FOR FEBRUARY DELIVERY ROSE 132 CENTS TO 8052 CENTS A POUND HEAVY SNOW AND FREEZING RAIN WERE EXPECTED IN THE CATTLEPRODUCING BELT OF OKLAHOMA SOUTHERN KANSAS AND THE TEXAS PANHANDLE AN AREA WITH ABOUT TWO MILLION HEAD OF CATTLE WINTRY WEATHER ALSO WAS FORECAST FARTHER NORTH IN THE BIG HOGFARMING STATES OF NEBRASKA IOWA AND ILLINOIS SUCH WEATHER TENDS TO SLOW MARKETINGS OF LIVESTOCK AND TO WEAKEN HERDS SINCE NOVEMBER CATTLE IN THE SOUTHERN PLAINS HAVE BEEN HIT BY PERSISTENTLY HARSH WEATHER STORMS DURING THANKSGIVING WEEK KILLED SOME CATTLE AND CAUSED MANY MORE TO LOSE WEIGHT ANALYSTS SAID HOG SLAUGHTER SHOULD DECLINE OVER THE NEXT COUPLE OF DAYS AS A RESULT OF THE WEATHER SAID DALE BENSON LIVESTOCK ANALYST FOR DEAN WITTER IN CHICAGO IN CATTLE THE PACKERS HAVE PLENTY OF INVENTORY FOR THE MOMENT BUT THEY TYPICALLY WANT TO MAINTAIN THE INVENTORY THEY HAVE WHEN FACED WITH WEATHER CONCERNS LIKE THIS CATTLE FUTURES PRICES HAVE BEEN SOARING FOR DAYS WITH CATTLE FOR FEBRUARY DELIVERY REACHING CONTRACT HIGHS ON FIVE OF THE PAST SIX TRADING DAYS WITH CATTLE PRICES HIGH RETAILERS MAY BEGIN TO FEATURE PORK AS AN ALTERNATIVE ANALYSTS SAID AND ANTICIPATION OF SUCH A SWITCH HAS HELPED PUSH LONGTERM FUTURES CONTRACTS HIGHER SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS FOR EXAMPLE THE HOG CONTRACT FOR JUNE DELIVERY SETTLED AT 4887 CENTS A POUND YESTERDAY MORE THAN FOUR CENTS HIGHER THAN THE NEARTERM FEBRUARY CONTRACT IN PORKBELLY FUTURES TRADING PRICES GOT ADDITIONAL SUPPORT FROM A BELIEF THAT CONSUMER DEMAND FOR BACON WHICH IS MADE FROM PORK BELLIES IS INCREASING BACON CONSUMPTION TYPICALLY RISES IN JANUARY AS MORE RETAILERS BEGIN FEATURING THE MEAT IN THEIR STORES TRADERS WILL BE WATCHING FOR THE WEEKLY COLDSTORAGE REPORT DUE OUT AFTER TRADING TODAY WHICH SHOWS HOW RAPIDLY PORK BELLIES ARE MOVING IN OR OUT OF COLD STORAGE MANY ANALYSTS WHO PREVIOUSLY EXPECTED THE REPORT TO SHOW SLIGHT INWARD MOVEMENT NOW HAVE REVISED THEIR ESTIMATES TO CALL FOR SOME OUTWARD MOVEMENT WHICH WOULD INDICATE HIGHERTHANEXPECTED CONSUMPTION AND CONSUMER DEMAND IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS FUTURES PRICES MOVED SHARPLY LOWER LED BY A SELLOFF IN GOLD AMID GROWING CONCERN ABOUT WEAK INVESTOR INTEREST AND TEPID INDUSTRIAL DEMAND GOLD FOR FEBRUARY DELIVERY SKIDDED 170 TO CLOSE AT 32780 AN OUNCE ON THE NEW YORK COMMODITY EXCHANGE TRADERS AND ANALYSTS SAID GOLD'S FINISH BELOW 328 AN OUNCE EQUAL TO THE SEVENYEAR LOW RECORDED JAN 4 PROMPTED A PULLBACK IN OTHER PRECIOUS METALS AND SUGGESTS THAT FURTHER DROPS IN THE GOLD PRICE ARE LIKELY SILVER FOR MARCH DELIVERY DROPPED TWO CENTS TO 3667 AN OUNCE ON THE COMEX GOLD PULLED SILVER DOWN SAID FRED DEMLER METALS ECONOMIST WITH PAINEWEBBER IT'S A NEGATIVE ENVIRONMENT PRODUCERS ARE SELLING ON ANY KIND OF PRICE RALLY PRICES OF PLATINUM AND PALLADIUM WHICH HAVE MORE INDUSTRIAL USES THAN GOLD AND SILVER WERE ALSO CRIMPED BY SLACK INVESTMENT INTEREST AND WORRIES THAT INDUSTRIAL DEMAND MAY REMAIN MUTED IF THE US ECONOMIC RECOVERY DOESN'T ACCELERATE ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR APRIL DELIVERY SETTLED 230 AN OUNCE LOWER AT 35550 WHILE THE ACTIVELY TRADED MARCH PALLADIUM CONTRACT CLOSED 100 AN OUNCE LOWER AT 10775 COPPER FUTURES PRICES TUMBLED ON REPORTS OF HEAVY SELLING BY CHINA JUST DAYS AFTER RALLYING ON RUMORS OF LARGESCALE CHINESE BUYING TRADERS SAID COPPER FOR MARCH DELIVERY CAME UNDER HEAVY SELLING PRESSURE IN LONDON MOSTLY FROM PROFITTAKING AND THAT SET THE TONE FOR EARLY TRADES AT THE NEW YORK COMMODITY EXCHANGE COPPER FOR MARCH DELIVERY TUMBLED 355 CENTS TO 10405 A POUND THE CHINESE HAVE BEEN VERY ACTIVE ON BOTH SIDES OF THE MARKET SAID TONY ELLIS A SENIOR METALS ANALYST WITH MERRILL LYNCH THEIR OBJECTIVE IS TO BUY COPPER AS CHEAPLY AS POSSIBLE AND THEY WILL PLAY THE MARKET TO ACHIEVE THE LOWEST POSSIBLE PRICE HE SAID SOME COMMODITY FUNDS SEEM TO HAVE LIQUIDATED SOME LONG POSITIONS OR BETS THAT THE PRICE WOULD RISE AFTER THE LACK OF FOLLOWTHROUGH FROM LAST WEEK'S HIGHER PRICES SEVERAL ANALYSTS SAID COPPER PRICES WERE BID TOO HIGH LAST WEEK THEY SAID THEY EXPECT FURTHER SELLING PRESSURE IN THE DAYS AHEAD ENERGY PETROLEUM FUTURES FELL DESPITE COLDER WEATHER OVER MUCH OF THE NATION THAT GAVE SOME SUPPORT TO HEATINGOIL PRICES THE LOW TEMPERATURES ALSO HELPED FIRM NATURALGAS FUTURES ON THE NEW YORK MERCANTILE EXCHANGE WHERE THE FEBRUARY CONTRACT ROSE 55 CENTS TO SETTLE AT 1614 A MILLION BRITISH THERMAL UNITS BUT AFTER TRADING HIGHER FOR MUCH OF THE DAY HEATING OIL FOR FEBRUARY DELIVERY CLOSED 013 CENT LOWER AT 5354 CENTS A GALLON FEBRUARY GASOLINE WAS DOWN 063 CENT A GALLON TO 5297 CENTS FEBRUARY CRUDE OIL SETTLED 10 CENTS A BARREL LOWER AT 1878 AFTER A BRIEF EARLY RALLY THE DECLINES WERE ATTRIBUTED TO BEARISH SUPPLYANDDEMAND FUNDAMENTALS AS MARKET PARTICIPANTS CONTINUED TO SHRUG OFF TENSIONS BETWEEN IRAQ AND THE UNITED NATIONS BUT TRADERS WERE KEEPING AN EYE ON DEVELOPMENTS AT THE UN SECURITY COUNCIL WHICH IS CONSIDERING IRAQ'S LATEST CEASEFIRE VIOLATIONS 9301120032 930112 ASSOCIATED BRITISH FOODS LONDON ASSOCIATED BRITISH FOODS PLC SAID IT ABANDONED TALKS TO PURCHASE A MAJOR STAKE IN A USBASED SUGAR COOPERATIVE AFTER FAILING TO AGREE ON TERMS THE BRITISH MANUFACTURING AND RETAILING GROUP ANNOUNCED EARLY LAST YEAR THAT IT WAS IN NEGOTIATIONS TO ACQUIRE A SUBSTANTIAL STAKE IN THE SUGAR REFINING AND DISTRIBUTION OPERATIONS OF CALIFORNIA & HAWAIIAN SUGAR CO A SAN FRANCISCO COOPERATIVE OF HAWAIIAN CANE GROWERS THOSE TALKS HAD BEEN EXPECTED TO BE CONCLUDED LAST SUMMER ASSOCIATED DIDN'T SPECIFY THE EXACT POINTS OF THE PROPOSED DEAL ON WHICH THE TWO PARTIES DISAGREED 9301120031 930112 INTERNATIONAL BRIEF COMMERZBANK AG RIGHTS ISSUE TO BE UNVEILED TODAY TO RAISE 304 MILLION COMMERZBANK AG GERMANY'S THIRDLARGEST COMMERCIAL BANK IS EXPECTED TO ANNOUNCE A RIGHTS ISSUE TODAY TO RAISE 500 MILLION MARKS 304 MILLION THROUGH A ONEFOR11 ISSUE OF 25 MILLION NEW SHARES AT 200 MARKS A SHARE THE FLOTATION FOR A NOMINAL VALUE OF 125 MILLION MARKS HERALDS COMMERZBANK'S RETURN TO FUNDRAISING ON THE EQUITIES MARKET AFTER A DECADELONG ABSENCE COMMERZBANK SHARES WERE QUOTED YESTERDAY AT AROUND 243 MARKS DOWN SLIGHTLY FROM 245 MARKS AT FRIDAY'S CLOSE THOUGH SLIGHTLY SMALLER THAN MANY MARKET ANALYSTS HAD EXPECTED THE RIGHTS ISSUE IS LIKELY TO BE FOLLOWED BY FURTHER SIMILAR MOVES AS CONDITIONS PERMIT AT ITS ANNUAL GENERAL MEETING LAST MAY COMMERZBANK OBTAINED AUTHORIZATION FOR FACEVALUE SHARE ISSUES OF AS MUCH AS 400 MILLION MARKS OVER FIVE YEARS THE EXTRA CAPITAL WILL HELP TO BOOST COMMERZBANK'S SOLVENCY RATIOS IN THE FACE OF STRINGENT NEW INTERNATIONAL CAPITAL ADEQUACY REQUIREMENTS 9301120030 930112 BUSINESS BRIEF MARGARETTEN FINANCIAL CORP MORTGAGE LOAN DEALS ROSE 30 LAST MONTH FIRM SAYS MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ SAID TOTAL MORTGAGE LOANS CLOSED AND PURCHASED IN DECEMBER WERE 717 MILLION A 30 RISE FROM 550 MILLION IN DECEMBER 1991 THE RESIDENTIAL MORTGAGE BANKER SAID RETAIL CLOSINGS FOR THE MONTH TOTALED 528 MILLION OR 74 OF THE TOTAL COMPARED WITH 461 MILLION OR 84 OF TOTAL LOAN VOLUME A YEAR AGO ABOUT 41 OF RETAIL CLOSINGS WERE REFINANCINGS OF EXISTING MORTGAGES UNCHANGED FROM A YEAR AGO AND DOWN FROM 52 IN NOVEMBER WHOLESALE LOAN PURCHASES IN DECEMBER TOTALED 189 MILLION OR 26 OF TOTAL PRODUCTION COMPARED WITH 89 MILLION OR 16 FOR THE YEARAGO PERIOD FOR THE FULL YEAR TOTAL RETAIL AND WHOLESALE LOAN PRODUCTION INCREASED 67 TO NEARLY 75 BILLION COMPARED WITH 44 BILLION FOR 1991 RETAIL CLOSINGS FOR 1992 TOTALED 6 BILLION UP 55 OVER 1991 REFINANCES REPRESENTED 42 OF RETAIL CLOSINGS FOR 1992 VS 22 IN 1991 9301120029 930112 BUSINESS BRIEF LA QUINTA MOTOR INNS LP UNITHOLDER GROUPS' CONFLICT HEADS BACK TO FEDERAL COURT CONFLICTING CLAIMS IN AN EFFORT BY DISSIDENT UNITHOLDERS TO DISSOLVE LA QUINTA MOTOR INNS LP ARE SENDING THE STRUGGLE OVER THE FUTURE OF THE LIMITED PARTNERSHIP BACK INTO FEDERAL COURT IN A STATEMENT THE CONCERN'S GENERAL PARTNER LA QUINTA REALTY CORP CONTESTED CLAIMS THAT MORE THAN 50 OF THE LIMITED PARTNERSHIP UNITS HAD VOTED FOR A PROPOSAL BY RONIN PARTNERS LP TO APPOINT AN AGENT TO DISSOLVE AND RESTRUCTURE THE SAN ANTONIOBASED PARTNERSHIP WHICH OWNS 31 INNS AND RESTAURANTS RONIN HAS SAID IT DELIVERED SUFFICIENT CONSENTS TO ENACT ITS PROPOSAL LA QUINTA REALTY SAID YESTERDAY IT IS STILL TABULATING THE CONSENTS LA QUINTA KNOWS FULL WELL THE VOTES ARE GOOD VOTES SAID PHILIP G NAPPO III PRESIDENT OF RONIN HE SAID THE DISPUTE IS SCHEDULED FOR ORAL ARGUMENTS IN FEDERAL DISTRICT COURT IN DELAWARE FEB 8 LA QUINTA REALTY ALSO CHARGED THAT RONIN'S CONSENTS WERE OBTAINED IN VIOLATION OF FEDERAL SECURITIES LAWS AND THE PARTNERSHIP AGREEMENT AND THAT IN ANY EVENT RONIN WOULD NEED THE CONSENTS OF 80 RATHER THAN 50 OF THE UNITHOLDERS BECAUSE ITS PROPOSALS EFFECTIVELY WOULD REMOVE THE GENERAL PARTNER 9301120028 930112 BUSINESS BRIEFS ADMINISTRATORS FOR THE LATE ROBERT MAXWELL'S PRIVATE COMPANIES SOLD MAXWELL TRAVEL INC'S 50 STAKE IN THOMAS COOK TRAVEL US A LICENSEE OF THOMAS COOK GROUP LTD TO THE HOLDERS OF THE OTHER 50 OF THE COMPANY TERMS WEREN'T DISCLOSED CARNIVAL CRUISE LINES INC SIGNED A CONTRACT WITH FINCANTIERI CANTIERI NAVALI ITALIANI SPA AN ITALIAN SHIPYARD TO BUILD THE LARGEST PASSENGER CRUISE VESSEL EVER BUILT THE PRICE OF THE SHIP WASN'T DISCLOSED CREATIVE TECHNOLOGY LTD AGREED TO ACQUIRE CLOSELY HELD EMU SYSTEMS INC FOR STOCK VALUED AT ABOUT 30 MILLION TURNER CORP A GENERAL BUILDER RECEIVED A THREEYEAR 40 MILLION REVOLVING CREDIT FACILITY WITH A BANK GROUP LED BY JP MORGAN & CO AMERICAN OIL & GAS CORP ACQUIRED AN ADDITIONAL 50 INTEREST IN AN INTRASTATE PIPELINE IN TEXAS TERMS WEREN'T DISCLOSED AMERICAN OIL ALREADY HAD A 25 INTEREST IN THE PIPELINE ANADARKO PETROLEUM CORP COMPLETED THE PURCHASE OF PROVED RESERVES IN THE PERMIAN BASIN OF WEST TEXAS FOR 190 MILLION FROM ATLANTIC RICHFIELD CO 9301120027 930112 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 FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE NOV 19 2000 PRICED AT PAR TO YIELD 669 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NONCALLABLE FOR THREE YEARS THE NOTES WERE PRICED AT A SPREAD OF 32 BASIS POINTS ABOVE THE TREASURY'S SEVENYEAR NOTE SMITHKLINE BEECHAM PLC 200 MILLION OF MEDIUMTERM NOTES DUE JAN 26 1996 PRICED AS 5 1/4 AT 99953 TO YIELD 5267 THE NOTES WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AMERICAN GENERAL FINANCE CORP 150 MILLION OF SENIOR NOTES DUE JAN 15 2000 PRICED AS 6 7/8 AT 99619 TO YIELD 6945 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 59 BASIS POINTS ABOVE THE TREASURY'S SEVENYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC AMERICAN GENERAL FINANCE IS A UNIT OF AMERICAN GENERAL CORP GTE CALIFORNIA INC 150 MILLION OF FIRST MORTGAGE BONDS DUE JAN 15 1998 WON IN COMPETITIVE BIDDING BY A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS INC THE BONDS WILL BE REOFFERED AS 6 1/4 AT 99872 TO YIELD 628 THE ISSUE WAS PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P HUNTINGTON NATIONAL BANK 150 MILLION OF SUBORDINATED BANK NOTES DUE JAN 15 2003 PRICED AS 7 5/8 AT 99544 TO YIELD 7691 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE THE TREASURY'S 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS HUNTINGTON NATIONAL BANK IS A UNIT OF HUNTINGTON BANCSHARES INC TEXAS UTILTIES ELECTRIC FIVE MILLION SHARES OF CUMULATIVE PREFERRED STOCK PRICED AT 25 A SHARE WITH A 820 DIVIDEND RATE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH THE FIRST PAYMENT OF THE OFFERING NONCALLABLE FOR FIVE YEARS IS SET FOR APRIL 1 THE ISSUER IS A UNIT OF TEXAS UTILITIES CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE JAN 19 1998 PRICED AT PAR TO YIELD 610 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS LORAL CORP 100 MILLION OF DEBENTURES DUE JAN 15 2023 PRICED AS 8 3/8 AT 98606 TO YIELD 8504 THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 105 BASIS POINTS ABOVE THE TREASURY'S 30YEAR BOND RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS SAM RAYBURN MUNICIPAL POWER AGENCY OF TEXAS 15381 MILLION OF SERIES 1993A POWER SUPPLY SYSTEM REVENUE REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 510 IN 1997 TO 702 IN 2015 THE ISSUE HAS BEEN RATED BAA BY MOODY'S AND TRIPLEB BY S&P KING COUNTY WASHINGTON 10683 MILLION OF 1993 SERIES A VARIOUSPURPOSE BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP FIRST BOSTON IS BELIEVED TO HAVE WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 57214 YIELDS WERE SET AT 250 IN 1993 TO 615 IN 2011 AND 2012 THE OFFERING HAS BEEN RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P INDIANA BOND BANK 100 MILLION OF STATE REVOLVING FUND PROGRAM REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS FOR THE 8551 MILLION OF GUARANTEE REVENUE BONDS AND THE 1449 MILLION OF STATE MATCH REVENUE BONDS RANGED FROM 465 IN 1996 TO 6585 IN 2015 THE BONDS ARE RATED SINGLEA BY S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 708 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES THE OFFERING SERIES 199311 IS BACKED BY FANNIE MAE'S 15YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199310 IS BACKED BY FANNIE MAE'S 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED BY MERRILL LYNCH THE OFFERING SERIES GOLD 1467 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 825 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL HOME LOAN BANKS 100 MILLION OF NOTES DUE JAN 22 1996 PRICED AT PAR TO YIELD 5 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF EIGHT BASIS POINTS ABOVE THE TREASURY'S THREEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH EXPORTIMPORT BANK OF JAPAN JAPAN 400 MILLION OF 6 3/4 EUROBONDS DUE FEB 10 2000 AT A FIXED INITIAL OFFER PRICE OF 9992 VIA GOLDMAN SACHS INTERNATIONAL THE YIELD MARGIN IS 28 BASIS POINTS ABOVE COMPARABLE US TREASURY FEES 030 POINT BRITISH COLUMBIA CANADA 100 MILLION OF COLLARED FLOATINGRATE NOTES DUE FEB 5 2003 VIA DEUTSCHE BANK CAPITAL MARKETS LTD INTEREST WILL BE PAID AT 25 BASIS POINTS BELOW THE LONDON INTERBANK OFFERED RATE WITH A MINIMUM COUPON OF 55 AND A MAXIMUM COUPON OF 8 THE ISSUE WAS OFFERED AT A FIXED INITIAL PRICE OF PAR FEES 1/2 POINT CAISSE FRANCAISE DE DEVELOPEMENT FRANCE 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE FEB 4 2003 VIA KIDDER PEABODY INTERNATIONAL INTEREST FLOATS AT 1/4 POINT BELOW LIBOR AT A MINIMUM OF 5 1/8 AND A MAXIMUM OF 8 1/4 FIXED REOFFER PRICE SET AT 99 3/4 FEES 1/2 SHISEIDO CO JAPAN 400 MILLION OF 25 EUROBONDS DUE FEB 4 1997 WITH EQUITY WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA DAIWA EUROPE LTD EACH 5000 BOND HAS ONE WARRANT ATTACHED EXERCISABLE FROM FEB 15 1993 TO JAN 22 1997 TO BUY COMPANY SHARES AT A PRICE TO BE SET AT 2 1/2 ABOVE THE CLOSING SHARE PRICE ON JAN 18 WHEN FINAL TERMS ARE SET FEES 2 1/4 SHISEIDO CO JAPAN 100 MILLION SWISS FRANCS OF 2 PRIVATELY PLACED NOTES DUE FEB 4 1997 WITH EQUITYPURCHASE WARRANTS ATTACHED AT AN ISSUE PRICE OF PAR VIA CREDIT SUISSE EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISEABLE FROM FEB 15 1993 TO JAN 22 1997 FINAL TERMS WILL BE SET FEB 18 FEES 1 5/8 POINTS 9301120026 930112 BUSINESS BRIEF INTELLICALL INC COMPANY EXPECTS TO POST A LOSS FOR FOURTH QUARTER INTELLICALL INC DALLAS SAID IT EXPECTS TO POST A LOSS FOR THE FOURTH QUARTER A COMPANY SPOKESMAN SAID THE SIZE OF THE LOSS HASN'T BEEN DETERMINED AND FURTHER DETAILS AREN'T EXPECTED UNTIL THE BOOKS FOR 1992 ARE CLOSED IN FEBRUARY THE TELECOMMUNICATIONS COMPANY HAD A LOSS OF 29 MILLION OR 44 CENTS A SHARE THROUGH THE FIRST NINE MONTHS IN 1991 IT EARNED 24 MILLION OR 35 CENTS A SHARE ON REVENUE OF 2216 MILLION THE FOURTHQUARTER LOSS CAPS A TROUBLED YEAR FOR INTELLICALL THE COMPANY DISMISSED SEVERAL TOP OFFICERS WHO FAILED TO DISCLOSE LOAN DEFAULTS EARLY LAST YEAR AND IT LATER CUT ITS WORK FORCE AT SEVERAL FACILITIES THE COMPANY ALSO ANNOUNCED THAT TELECOM ARGENTINA SA TENTATIVELY ACCEPTED ITS BID VALUED AT 8 MILLION TO INSTALL IN ARGENTINA PAY TELEPHONES THAT CAN BE OPERATED BY PREPAID MICROCHIP CARD BANK CARD OR CREDIT CARD 9301120025 930112 BUSINESS BRIEF MAXTOR CORP NET FOR FISCAL 3RD QUARTER ROSE MORE THAN FOURFOLD MAXTOR CORP SAN JOSE CALIF BUOYED BY SURGING PERSONAL COMPUTER SALES SAID NET INCOME IN THE THIRD QUARTER ENDED DEC 26 JUMPED MORE THAN FOURFOLD TO 186 MILLION OR 61 CENTS A SHARE REVENUE ROSE 59 TO 4026 MILLION A YEAR EARLIER THE DISK DRIVE MAKER EARNED 4 MILLION OR 15 CENTS A SHARE ON REVENUE OF 2529 MILLION FOR THE NINE MONTHS MAXTOR EARNED 658 MILLION OR 222 A SHARE ON REVENUE OF 11 BILLION IN THE PRIORYEAR PERIOD IT HAD A NET LOSS OF 16 MILLION OR 63 CENTS A SHARE ON REVENUE OF 7375 MILLION MAXTOR AND MANY OF ITS COMPETITORS HAVE BENEFITED FROM THE PRICE WARS IN THE PC INDUSTRY WHICH HAS TRIGGERED A BOOM IN SALES OF PCS AS WELL AS THEIR PARTS SUCH AS DISK DRIVES HOWEVER MAXTOR SAID ITS GROSS MARGIN DECLINED COMPARED WITH THE FISCAL SECOND QUARTER BECAUSE OF PRICECUTTING AMONG DISK DRIVE MAKERS IN OVERTHECOUNTER TRADING YESTERDAY MAXTOR CLOSED AT 14375 UP 50 CENTS 9301120024 930112 BUSINESS BRIEF MARCAM CORP FISCAL 1STQUARTER NET WAS BELOW ANALYST ESTIMATES MARCAM CORP NEWTON MASS SAID IT EXPECTS TO REPORT FISCAL FIRST QUARTER EARNINGS OF SEVEN CENTS TO 11 CENTS A SHARE ON REVENUE OF 22 MILLION TO 23 MILLION THE MAKER OF COMPUTER SOFTWARE SAID ANALYSTS HAVE BEEN ESTIMATING NET INCOME OF ABOUT 22 CENTS A SHARE FOR THE QUARTER WHICH ENDED DEC 31 IT SAID REVENUE SHOULD BE IN LINE WITH ANALYSTS' PROJECTIONS A YEAR EARLIER MARCAM POSTED PROFIT OF 14 MILLION OR 17 CENTS A SHARE ON REVENUE OF 166 MILLION THE COMPANY ATTRIBUTED THE LOWER EARNINGS PRIMARILY TO HIGHER EXPENSES FOR DISTRIBUTORS' SALES COMMISSIONS AND TO A LESSER DEGREE COSTS ASSOCIATED WITH ITS ANTICIPATED ACQUISITION OF MARKETING RIGHTS TO INTERNATIONAL BUSINESS MACHINES CORP'S MAPICS SOFTWARE PRODUCT LINE PAUL A MARGOLIS MARCAM'S PRESIDENT AND CHIEF EXECUTIVE SAID THAT OVERALL DEMAND FOR OUR PRODUCTS AND SERVICES IN THE QUARTER WAS VERY GOOD 9301120023 930112 INTERNATIONAL BRIEF BANCO ESPANOL DE CREDITO SPANISH COMPANY LAUNCHES LARGE SECURITIZATION PROJECT BANCO ESPANOL DE CREDITO LAUNCHED EUROPE'S LARGEST CORPORATELOANS SECURITIZATION PROJECT TO DATE A EUROCOMMERCIAL PAPER PROGRAM TOTALING AS MUCH AS 1 BILLION DESIGNED TO REDUCE PRESSURE ON BANESTO'S CAPITAL BASE IN A FIRST STAGE BANESTO YESTERDAY SOLD EUROCOMMERCIAL PAPER BACKED BY A LOAN TO A MAJOR SPANISH CORPORATE BORROWER WHOSE IDENTITY WASN'T DISCLOSED THE PROGRAM MODELED ON SIMILAR PROGRAMS LAUNCHED RECENTLY BY MAJOR US BANKS WAS ARRANGED FOR BANESTO BY JP MORGAN IT IS DESIGNED TO HELP BANESTO RESHAPE THE ASSET SIDE OF ITS BALANCE SHEET IN THE LIGHT OF STRINGENT NEW SPANISH AND INTERNATIONAL SOLVENCY REQUIREMENTS FOR THREE YEARS BANESTO HAS BEEN WRESTLING WITH PROBLEMS CREATED BY ITS EXPOSURE TO A SLUMPING PORTFOLIO OF INDUSTRIAL COMPANIES BROUGHT TOGETHER UNDER A HOLDING COMPANY CORP INDUSTRIAL & FINANCIERA DE BANESTO KNOWN AS LA CORPORACION 9301120022 930112 BUSINESS BRIEF SONIC CORP GROUP ENDS PACT WITH FIRM PLANS SALE OF RESTAURANTS SONIC CORP OKLAHOMA CITY SAID RESTAURATEUR JAMIE B COULTER INFORMED IT THAT HIS INVESTMENT GROUP PLANS TO SELL ITS HOLDINGS OF NINE SONIC DRIVEIN RESTAURANTS AND END AN AUGUST 1991 AGREEMENT THAT CALLED FOR THE GROUP TO OPEN 133 SONIC DRIVEINS OVER SEVEN YEARS THE COULTER GROUP COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY SONIC SAID IT DOESN'T BELIEVE THIS DEVELOPMENT WILL HAVE A MATERIAL IMPACT ON ITS 1993 FISCAL YEAR EARNINGS IT SAID IT IS HELPING THE WICHITA KAN COULTER GROUP WHICH HAD BEEN SCHEDULED TO OPEN 10 SONIC RESTAURANTS THIS YEAR ARRANGE THE SALE OF THE RESTAURANTS SONIC SAID IT HAS BEGUN DISCUSSIONS TO REFRANCHISE THE GROUP'S TERRITORIES TO OTHER SONIC FRANCHISEES SONIC ALSO SAID IT ACQUIRED A SONIC FRANCHISE CONTROLLED BY DENNIS CLARK PRESIDENT OF SONIC'S SONIC RESTAURANTS INC SUBSIDIARY IN A STOCKFORSTOCK TRANSACTION IN EXCHANGE FOR HIS ADVENT RESTAURANT INC'S SIX SONIC UNITS MR CLARK'S COMPANY RECEIVED ABOUT 100000 SHARES OF SONIC STOCK 9301120021 930112 TECHNOLOGY BRIEF HEWLETTPACKARD CO PC PRICES CUT UP TO 22 IN EFFORT TO BOOST SHARE HEWLETTPACKARD CO PALO ALTO CALIF SAID IT CUT ITS PERSONALCOMPUTER PRICES AS MUCH AS 22 CONTINUING ITS RECENT PUSH TO WIN PC MARKET SHARE WITH LOWERPRICED MACHINES HP CUT THE LIST PRICE OF THE LEASTEXPENSIVE MODEL THAT USES INTEL'S SLOWEST 486 CHIP TO 1029 FROM 1149 FOR INSTANCE AND CUT THE LIST PRICE ON A MODEL USING INTEL'S FASTEST 486 CHIP TO 2839 FROM 3649 HP FAILED TO GAIN MUCH PC MARKET SHARE IN THE 1980S BECAUSE ITS MACHINES WHILE ACCLAIMED FOR HIGH QUALITY WERE TOO HIGH IN PRICE FOR MASS APPEAL HP ABANDONED ITS HIGHPROFITMARGIN STRATEGY LAST YEAR WHEN IT ENTERED THE PC PRICE WARS IN EARNEST HP SAID ITS US UNIT SHIPMENTS OF 486BASED MACHINES WERE UP MORE THAN 150 IN THE SECOND HALF OF 1992 FROM A YEAR EARLIER 9301120020 930112 BUSINESS BRIEF LIONEL CORP MORE STORES WILL BE CLOSED AFTER POOR CHRISTMAS SALES LIONEL CORP THE TOY RETAILER IN REORGANIZATION UNDER CHAPTER 11 BANKRUPTCY PROCEEDINGS SAID IT CLOSED 13 STORES SINCE CHRISTMAS AND WILL CLOSE AN ADDITIONAL 27 STORES BY THE END OF NEXT MONTH THE CLOSINGS MOSTLY IN THE NEW YORK AND ATLANTA METROPOLITAN AREAS REFLECT DISAPPOINTING CHRISTMAS SALES SAID MICHAEL J VASTOLA PRESIDENT AND CHIEF EXECUTIVE OF THE EDISON NJ COMPANY TWO REGIONAL DISTRIBUTION CENTERS WILL ALSO BE CLOSED BY THE END OF NEXT MONTH THE COMPANY EXPECTS TO SECURE A DEBTORINPOSSESSION CREDIT FACILITY OF UP TO 25 MILLION TO PROVIDE WORKING CAPITAL FOR CONTINUING OPERATIONS LIONEL SAID IT IS ACTIVELY SEEKING AN INVESTOR IN THE REORGANIZED COMPANY SEPARATELY TOY MAKER MATTEL INC SAID FOURTHQUARTER PROFIT WILL BE REDUCED BY A 5 MILLION PRETAX CHARGE FOR UNCOLLECTED PAYMENTS OWED BY LIONEL'S LIONEL LEISURE INC UNIT IN THE 1991 FOURTH QUARTER MATTEL POSTED NET OF 293 MILLION OR 46 CENTS A SHARE ON SALES OF 5136 MILLION 9301120019 930112 BUSINESS BRIEF OGDEN CORP UNIT COMPLETES PURCHASE OF ASEA BROWN OPERATIONS OGDEN PROJECTS INC SAID IT COMPLETED THE PURCHASE OF THE US WASTETOENERGY BUSINESS OF ASEA BROWN BOVERI INC FOR 50 MILLION OGDEN PROJECTS FAIRFIELD NJ TOOK OVER OPERATIONS OF THREE WASTETOENERGY PROJECTS THAT CONSTITUTED ASEA BROWN'S US WASTETOENERGY BUSINESS ALL THREE FACILITIES IN DETROIT HONOLULU AND HARTFORD CONN CONVERT MUNICIPAL SOLID WASTE INTO ENERGY WITH THE ACQUISITION OGDEN PROJECTS WHICH IS 85OWNED BY OGDEN CORP HAS 24 WASTETOENERGY PROJECTS SERVING AN ESTIMATED 16 MILLION PEOPLE IN 15 STATES WITH THREE PROJECTS UNDER CONSTRUCTION OGDEN CORP PROVIDES SUPPORT SERVICES TO ENERGY AND ENVIRONMENTAL AGENCIES AIRPORTS AND OTHERS OGDEN PROJECTS DESIGNS CONSTRUCTS AND OPERATES WASTETOENERGY FACILITIES ASEA BROWN BOVERI INC STAMFORD CONN IS A US UNIT OF ABB ASEA BROWN BOVERI OF ZURICH 9301120018 930112 NANTUCKET INDUSTRIES EARNINGS CLIMBED 11 IN FISCAL THIRD PERIOD NEW YORK NANTUCKET INDUSTRIES INC'S SHARES SLID 15 PARTLY REFLECTING SLIGHTLY HIGHER PROFIT IN THE FISCAL THIRD QUARTER AND A NEARLY 1 MILLION REDUCTION IN SHIPMENTS TO AVON PRODUCTS INC IN THE SAME PERIOD THE SHORTFALL OCCURRED BECAUSE AVON A NEW YORK BEAUTY PRODUCTS AND DIRECT SELLING COMPANY SHIFTED ITS ORDER FOR GOODS FROM OUR THIRD QUARTER TO OUR FOURTH QUARTER SAID GEORGE J GOLD NANTUCKET'S CHAIRMAN AND CHIEF EXECUTIVE HE EXPECTS THAT FOURTHQUARTER SHIPMENTS TO AVON WILL MAKE UP FOR THE THIRDQUARTER REDUCTION NANTUCKET A MAKER OF UNDERGARMENTS AND SOCKS THAT IT MARKETS UNDER BRANDNAME LICENSES SAID THE SHORTFALL WAS PARTLY COMPENSATED FOR BY AN INCREASE OF ABOUT 570000 IN THIRDQUARTER SHIPMENTS OF WOMEN'S HEALTHCARE UNDERGARMENTS NET INCOME FOR THE FISCAL THIRD QUARTER ENDED NOV 28 ROSE 11 TO 451060 OR 18 CENTS A SHARE FROM 407450 OR 17 CENTS A SHARE IN THE YEARAGO QUARTER THE GROWTH IN PROFIT PARTLY REFLECTS INCREASED SALES OF HIGHERMARGIN PRODUCTS AND LOWER MANUFACTURING COSTS SALES ROSE SLIGHTLY TO 132 MILLION NEVERTHELESS NANTUCKET'S SHARES WERE QUOTED LATE YESTERDAY AT 12 DOWN 2125 IN TRADING ON THE AMERICAN STOCK EXCHANGE I'M NOT ONLY SURPRISED I'M SHOCKED MR GOLD SAID NOTING THAT THE COMPANY'S BUSINESS WAS STRONG AND EARNINGS ESTIMATES FOR THE YEAR WERE ON STREAM A SPOKESMAN FOR THE COMPANY SPECULATED THAT THE SLIDE IN THE STOCK PRICE MAY BE DUE TO PROFIT TAKING BY SMALL INVESTORS NANTUCKET EXPECTS FISCAL 1993 SALES OF BETWEEN 48 MILLION AND 50 MILLION COMPARED WITH SALES OF 447 MILLION IN 1992 9301120017 930112 BAREFOOT COMPLETES ACQUISITION WORTHINGTON OHIO BAREFOOT INC SAID ON JAN 1 IT COMPLETED THE ACQUISITION OF EVERGREEN LAWNS CORP FROM ADT LTD HAMILTON BERMUDA TERMS WEREN'T DISCLOSED EVERGREEN WHICH HAD BEEN BASED IN ST LOUIS HAD OPERATIONS IN KANSAS CITY MO ST LOUIS MINNEAPOLIS MILWAUKEE LOUISVILLE AND LEXINGTON KY CINCINNATI AND DAYTON OHIO AND INDIANAPOLIS BAREFOOT SAID EVERGREEN HAD REVENUE OF 22 MILLION LAST YEAR THE LAWNCARE SERVICE CONCERN ALSO SAID SIX FRANCHISE LOCATIONS AND ONE COMPANY LOCATION WILL BEGIN OPERATING THIS YEAR INCLUDING THE NEWLY ACQUIRED EVERGREEN OPERATIONS AND THE OTHER NEW LOCATIONS BAREFOOT WILL HAVE 31 COMPANY LOCATIONS 36 FRANCHISE LOCATIONS AND NINE FRANCHISE LOCATIONS THAT ARE MANAGED BY THE COMPANY 9301120015 930112 FINANCING BUSINESS INTERTEL COMMUNICATIONS INC INTERTEL COMMUNICATIONS INC SAID A 1FOR5 REVERSE SPLIT OF ITS STOCK IS EXPECTED TO TAKE EFFECT THURSDAY THE DENVER TELECOMMUNICATIONS COMPANY SAID THE REVERSE SPLIT WHICH WILL REDUCE ITS 522 MILLION SHARES OUTSTANDING TO 104 MILLION SHARES TAKES PLACE AS ITS MOVES TO A FULL LISTING ON THE AMERICAN STOCK EXCHANGE FROM THE EXCHANGE'S EMERGING COMPANY MARKETPLACE 9301120014 930112 BUSINESS BRIEF NETWORK SYSTEMS CORP REVENUE FOR 4TH PERIOD SEEN BELOW ANALYSTS' ESTIMATES NETWORK SYSTEMS CORP MINNEAPOLIS SAID IT EXPECTS FOURTHQUARTER REVENUE TO SLIP ABOUT 5 MILLION BELOW ANALYSTS' ESTIMATES LEADING TO A CORRESPONDING REDUCTION IN OPERATING PROFIT THE PROVIDER OF HIGHPERFORMANCE COMPUTER NETWORKING PRODUCTS AND SERVICES BLAMED THE REVENUE PROBLEM ON CAPACITY CONSTRAINTS IN THE TESTING DEPARTMENT AND SAID IT IS IMPLEMENTING PROCESS ENHANCEMENTS THAT WILL PREVENT THIS SITUATION FROM OCCURRING IN THE FUTURE IN THE 1991 FOURTH QUARTER NETWORK SYSTEMS REPORTED NET INCOME OF 56 MILLION OR 18 CENTS A SHARE ON REVENUE OF 653 MILLION ACCORDING TO ZACKS INVESTMENT RESEARCH INC ANALYSTS WERE PREDICTING NET OF 26 CENTS A SHARE ON AVERAGE FOR THE 1992 FOURTH QUARTER 9301120013 930112 INTERNATIONAL BRIEF GOLD FIELDS OF SOUTH AFRICA PROFIT OF CONCERN'S 6 MINES GREW 19 IN FOURTH QUARTER MINING CONCERN GOLD FIELDS OF SOUTH AFRICA LTD REPORTED THAT THE COMBINED NET INCOME OF ITS SIX GOLD MINES GREW 19 TO 2702 MILLION RAND 874 MILLION IN THE FOURTH QUARTER OF 1992 FROM 2268 MILLION RAND IN THE THIRD QUARTER FIRES AT THREE OF THE GOLD MINES HURT PRODUCTION SIGNIFICANTLY IN THE FOURTH QUARTER ALAN MUNRO HEAD OF THE GROUP'S GOLD DIVISION SAID THE COMPANY WASN'T RULING OUT THE POSSIBILITY OF ARSON OUR CONCLUSION IS THAT THE NUMBER IS ABNORMAL WE DON'T HAVE ANY FURTHER CONCLUSION AT THIS STAGE HE SAID ALL OF GOLD FIELD'S MINES WERE HELPED BY THE BETTER RAND/GOLD PRICE DURING THE QUARTER THAT RESULTED FROM THE RAND DEPRECIATING TO AN AVERAGE OF 297 RAND PER DOLLAR DURING THE FOURTH QUARTER FROM AN AVERAGE 277 RAND PER DOLLAR IN THE THIRD QUARTER 9301120012 930112 CANADIAN BANKS CUT PRIME RATES OTTAWA CANADA'S MAJOR BANKS REDUCED THEIR PRIME LENDING RATES TO 7 FROM 725 EFFECTIVE TODAY THE RATE CHANGE FOLLOWED A FURTHER DECLINE IN SHORTTERM INTEREST RATES IN THE CANADIAN MONEY MARKET THE PRIME RATE IS THE BENCHMARK FOR VARIOUS BANK LENDING CHARGES 9301120011 930112 MARKETING & MEDIA LIBERTY BROADCASTING FINANCING NEW YORK LIBERTY BROADCASTING INC SAID IT HAS SECURED MORE THAN 50 MILLION IN EQUITY FINANCING AND NAMED JIM THOMPSON FORMER PRESIDENT OF GROUP W RADIO A COCHIEF EXECUTIVE OFFICER LIBERTY BROADCASTING AN INVESTMENT COMPANY THAT IS TARGETING RADIO STATIONS IN THE TOP 35 US MARKETS SAID IT RECEIVED THE EQUITY FINANCING FROM INVESTMENT FIRMS JOSEPH LITTLEJOHN & LEVY AND DONALDSON LUFKIN & JENRETTE SECURITIES A UNIT OF EQUITABLE COS 9301120010 930112 LETTER FROM THE PUBLISHER A REPORT TO THE WALL STREET JOURNAL'S READERS THIS PROGRESS REPORT CARRIES FORWARD A CUSTOM BEGUN 12 YEARS AGO IT REFLECTS OUR BELIEF THAT PUBLISHING A NEWSPAPER IS A PUBLIC TRUST FOR WHICH WE ARE ACCOUNTABLE FIRST OF ALL TO YOU OUR READERS TO OUR READERS RARELY HAVE WE ENTERED A NEW YEAR SO LIKELY TO BRING CHANGE AND CHALLENGE OR TO PLACE MORE OF A PREMIUM ON THE KIND OF JOURNALISM THAT DISTINGUISHES THIS NEWSPAPER AMONG THE ISSUES SURE TO COMMAND FOCUS IN 1993 A NEW ADMINISTRATION IN WASHINGTON SEEKING TO DEFINE ITS MANDATE AND SET ITS COURSE A US ECONOMY EMERGING FROM A RECESSION PROTRACTED MORE BY PUBLIC PESSIMISM THAN ECONOMIC REALITIES AN AMERICAN INDUSTRY REASSERTING ITS COMPETITIVENESS AN UNCERTAIN EMERGENCE OF MARKET CAPITALISM IN RUSSIA AND CHINA AND A GLOBAL FINANCIAL MARKETPLACE BECOMING EVER MORE INTERDEPENDENT A POST COLD WAR WORLD STREWN WITH LOCAL CONFLICTS FROM BALKANS TO MIDEAST TO AFRICA WILL DEMAND AMERICAN LEADERSHIP AT THE SAME TIME AN ARRAY OF DOMESTIC ISSUES FROM DRUGS AND CRIME TO POOR PERFORMANCE IN OUR SCHOOLS TO AN EXPLOSION OF LUDICROUS LITIGATION WILL CLAIM PUBLIC ATTENTION COMPLICATING THESE ISSUES IS A CULTURAL CLEAVAGE BETWEEN TRADITIONAL VALUES TRUTH AND FALSEHOOD RIGHT AND WRONG THE PRIMACY OF THE INDIVIDUAL WITHIN THE SOCIAL AND POLITICAL ORDER AND FADDISH PHILOSOPHIES OF MORAL RELATIVISM HISTORICAL DECONSTRUCTIONISM POLITICAL CORRECTNESS AND ALL THAT ENSUES FROM THEM INTOLERANCE SINGLEISSUE POLITICS AND THE STEREOTYPING OF CITIZENS BY A SUPERMARKET OF ISMS AND ISTS READERS MAY AGREE OR DISAGREE WITH THE SELECTION OF THEMES TOUCHED ON ABOVE BUT THE BROADER POINT IS THAT EVENTS OF THIS YEAR OR ANY YEAR ARE MORE THAN FLICKERING IMAGES OF ELECTION RALLIES OR RACE RIOTS SERBIAN SAVAGERY OR SOMALI STARVATION BOARDROOM BATTLES OR CURRENCY CRISES SUCH IMAGES MAGNIFY MOMENTS BUT DO NOT TELESCOPE TRENDS IT IS HOWEVER TRENDS AND LARGER TRUTHS NOT MERE NUGGETS OF NEWS THAT THIS NEWSPAPER SEEKS TO DISCERN AND DEFINE FOR ITS READERS OUR GOAL IS NOT MERELY TO CHRONICLE ISOLATED EVENTS THOUGH DOING SO ACCURATELY AND FAIRLY IS A PREREQUISITE FOR EVERYTHING ELSE WE TO DO OUR LARGER CHALLENGE IS TO APPLY JUDGMENT TO THE MYRIAD EVENTS THAT CAN BE CALLED NEWS TO SIFT AND SORT THE SIGNIFICANT FROM THE LESS SO TO FRAME MEANINGFUL EVENTS IN WIDER FOCUS AND TO HELP READERS MAKE SENSE OF THE PROFUSION OF EVENTS THAT BOMBARD AND OFTEN BEWILDER US WE DON'T CLAIM PERFECTION EVEN THE BEST JOURNALISM IS BUT A FIRST DRAFT OF HISTORY BUT WE BRING TO THE CHALLENGE CERTAIN BASIC BELIEFS THAT AREN'T MUCH IN FASHION THESE DAYS WE BELIEVE FACTS ARE FACTS AND THAT THEY ARE ASCERTAINABLE THROUGH HONEST OPENMINDED AND DILIGENT REPORTING WE THUS BELIEVE THAT TRUTH IS ATTAINABLE BY LAYING FACT UPON FACT MUCH LIKE THE CONSTRUCTION OF A CATHEDRAL NEWS IN SHORT IS NOT MERELY A MATTER OF VIEWS AND TRUTH IS NOT MERELY IN THE EYE OF THE BEHOLDER IN PURSUING THIS MISSION INDEPENDENCE IS OUR MOST IMPORTANT ASSET TRUTHS AREN'T ALWAYS PLEASING BUT WE CAN'T REMAIN CREDIBLE IF WE SOFTPEDAL OR SUPPRESS THEM TO AVOID ALIENATING A CORPORATION OR A POLITICAL CANDIDATE SHAREHOLDERS OR SPECIAL INTEREST GROUPS THE NEWS PAGES OF THIS NEWSPAPER DO NOT EXIST TO ADVANCE ANY CAUSE NO MATTER HOW WORTHY BEYOND PROVIDING HONEST AND RELEVANT INFORMATION TO OUR READERS DURING 1992 JOURNAL REPORTERS PROVIDED EARLY WARNINGS ON THE SEVERITY OF PROBLEMS FACING A JAPANESE ECONOMY LONG CONSIDERED AN ENGINE OF PERPETUAL ECONOMIC GROWTH WE WERE ALSO AMONG THE FIRST TO REPORT THE DISCORD AND DIVISION THAT HAS DEFERRED DREAMS OF EUROPEAN ECONOMIC UNITY IN NEITHER CASE WERE WE REPORTING THE CONVENTIONAL WISDOM OF THE HOUR SIMILARLY JOURNAL REPORTING RAISED RED FLAGS ON THE SERIOUSNESS OF PROBLEMS CONFRONTING SOME CORPORATE GIANTS LIKE IBM AND GENERAL MOTORS INCLUDING FORESHADOWING THE BOARDROOM REVOLT THAT WOULD OUST GM'S CEO ROBERT STEMPEL SUCH STORIES WEREN'T WRITTEN AS ISOLATED EVENTS BUT AS PART OF A CONTINUUM OF FORWARDLOOKING BUSINESS COVERAGE THAT COVERAGE DESPITE SOME CORPORATE CRISES DIDN'T PARROT THE PREVAILING PESSIMISM ABOUT AMERICAN COMPETITIVENESS IN A SERIES ENTITLED TAMING THE MONSTER THE JOURNAL SPOTLIGHTED THE TURNABOUT SUCCESSES OF COMPANIES LIKE MOTOROLA AND FORD AND THE SAME DAY THAT PRESIDENTELECT CLINTON CONVENED HIS ECONOMIC SUMMIT IN LITTLE ROCK TO CATALOG THE WOES OF AMERICA'S ECONOMY A JOURNAL ARTICLE FROM SILICON VALLEY REPORTED THAT US COMPANIES ARE LEADING THE WORLD IN CRUCIAL INDUSTRIES OF THIS INFORMATION AGE SOFTWARE CHIP MANUFACTURING AND BIOTECHNOLOGY THE JOURNAL'S POLITICAL COVERAGE REFLECTED THE SAME INDEPENDENCE THIS NEWSPAPER UPSET THE CLINTON CAMP BY DISCLOSING DETAILS OF MR CLINTON'S YOUTHFUL DRAFT EVASION PEROT PARTISANS WERE ANGERED BY OUR RECOUNTING HIS PENCHANT FOR INVESTIGATING THE LIVES OF BUSINESS COMPETITORS AND POLITICAL OPPONENTS THE JOURNAL ALSO DISAPPOINTED BUSH BACKERS BY ITS COVERAGE OF AMERICA'S ECONOMIC PROBLEMS AND THE GENERAL DRIFT OF THE PRESIDENT'S DOMESTIC AGENDA THE POINT ISN'T THAT THE JOURNAL DELIGHTS IN UPSETTING CANDIDATES BUT RATHER OUR DETERMINATION TO OFFER READERS HONEST NONPARTISAN COVERAGE THAT PROBES POLICIES PROMISES PERFORMANCE AND CHARACTER IN REPORTING ON SOCIAL PROBLEMS THE JOURNAL DIDN'T JUST BEMOAN THE PRESENCE OF PREJUDICE IN OUR SOCIETY BUT DEVOTED SEVERAL PAGES TO DETAILING BANK BY BANK PRECISELY HOW MORTGAGE LENDING IS BIASED AGAINST RACIAL MINORITIES SIMILARLY THE JOURNAL DIDN'T MERELY REPORT ON VIOLENCE IN AMERICA'S INNER CITIES BUT LAUNCHED AN INVESTIGATION THAT DETAILED HOW HANDGUNS PROLIFERATE ON CITY STREETS AND WHO MAKES SELLS AND PROFITS FROM THEM IF JOURNAL REPORTING DELINEATED DETAILS OF SOCIAL ISSUES IT ALSO PAINTED PANORAMAS IN A SERIES ENTITLED THE AMERICAN CIVILIZATION DENNIS FARNEY MINED HISTORY FOR THE EVOLUTION OF AMERICA'S JEFFERSONIAN IDEAL WALKED THE STREETS OF ST LOUIS TO UNDERSTAND THE DIVERSITY OF MODERNDAY AMERICA AND INTERVIEWED AMERICA'S MOST NOTED NOVELISTS TO DEFINE AMERICAN DREAMS THE SERIES TRANSCENDED TODAY'S NEWS TO OFFER THE WIDEST POSSIBLE VIEW OF OUR SOCIETY AND OURSELVES IN A VARIETY OF WAYS JOURNAL NEWS COVERAGE ALSO CHALLENGED POLITICALLY CORRECT THINKING AS WELL AS LEADERS WHO CLAIM TO SPEAK FOR CONSTITUENCIES AND CAUSES FOR INSTANCE AN ARTICLE FROM OUR WASHINGTON BUREAU DISTURBED FEMINIST GROUPS BY POINTING OUT THEIR FAVORITISM TOWARD PROCHOICE SEN ROBERT PACKWOOD WHO ADMITTED TO FAR MORE SERIOUS SEXUAL HARASSMENT OFFENSES THAN CONSERVATIVE JUSTICE CLARENCE THOMAS EVER WAS ACCUSED OF A JOURNAL ARTICLE FROM OREGON SIMILARLY UPSET SOME ENVIRONMENTAL ACTIVISTS BY LOOKING AT THE SPOTTED OWL CONTROVERSY THROUGH THE EYES OF UNEMPLOYED TIMBERMEN AND THEIR FAMILIES AND IN A CONTROVERSIAL ARTICLE ENTITLED MANY VOICES THE JOURNAL FLAGGED THE FACT THAT BLACK POLITICAL LEADERS HAVE BECOME LESS AND LESS REPRESENTATIVE OF THE CONSTITUENCIES THEY CLAIM TO LEAD JOURNAL REPORTING REMAINS CONSISTENTLY SKEPTICAL OF CAUSES THAT CATEGORIZE AND STEREOTYPE PEOPLE AND OF INDIVIDUALS OR INSTITUTIONS THAT CLAIM TO SPEAK FOR THEM THIS FREQUENTLY LEADS TO JOURNAL PROFILES IN WHICH PEOPLE TELL THEIR OWN STORIES FOR INSTANCE THE AIDS VICTIM MAKING PARTING PEACE WITH HIS PARENTS THE SCHIZOPHRENIC CONFRONTING HER ILLNESS THE CHILD ROBBED OF HIS FACE BY A RARE DISEASE WHO CONFRONTS LIFE WITH EXTRAORDINARY OPTIMISM SOME SUCH STORIES ARE TRAGIC OTHERS UPLIFTING BUT ALL AVOID THE CONVENIENCE OF CARICATURE THE KINDS OF ARTICLES MENTIONED IN THIS LETTER AREN'T EASY TO REPORT THEY CAN CREATE CONTROVERSY PRECISELY BECAUSE THEY DON'T INTONE PREVAILING ORTHODOXIES OFTEN ECHOED BY MUCH OF AMERICA'S MEDIA BUT JUST AS THE JOURNAL HAS NEVER BEEN WILLING TO PLAY POLLYANNA FOR AMERICAN BUSINESS IT IS EQUALLY UNWILLING TO PLAY CHEERLEADER FOR ORGANIZED SOCIAL AND POLITICAL CAUSES IN OUR NEWS COVERAGE THIS INDEPENDENCE REFLECTS NO IDEOLOGICAL OR PARTISAN PERSPECTIVE BUT SIMPLY A CONSTANT COMMITMENT TO LISTEN TO MANY VOICES AND TO SEEK MANY VIEWS IN THE PROCESS OF REPORTING AND WRITING THE TRUTH AS BEST WE CAN DETERMINE IT THE JOURNAL'S EDITORIAL PAGE BY CONTRAST EXISTS PRECISELY TO PROPOUND A POINT OF VIEW SET BY THE JOURNAL'S EDITOR AND EDITORIAL BOARD THEY DO SO CONSISTENT WITH VALUES AND VIEWS FOR WHICH THIS NEWSPAPER HAS STOOD FOR MORE THAN A CENTURY VALUES ROOTED IN THE PRIMACY OF THE INDIVIDUAL THIS IN TURN LEADS US CONSISTENTLY TO CHAMPION INDIVIDUAL LIBERTIES POLITICAL FREEDOMS FREE ENTERPRISE FREE MARKETS FREE TRADE AND THE FREE MOVEMENT OF PEOPLES IT IS A WORLDVIEW AS APPLICABLE TODAY AS A CENTURY AGO AS RELEVANT TO EMERGING NATIONS AS TO OUR OWN JOURNAL EDITORIALS LAST YEAR CLEARLY DID NOT ECHO CONVENTIONAL WISDOM NOR SHY FROM CONTROVERSY THEY DEFENDED DAN QUAYLE CHRISTOPHER COLUMBUS CASPAR WEINBERGER AND HENRI MATISSE THEY CRITICIZED CONTINGENCYFEE LAWYERS OVERZEALOUS BANK REGULATORS ISOLATIONISTS ON THE LEFT AND RIGHT LAWRENCE WALSH PAT BUCHANAN AND MADONNA JOURNAL EDITORIALS CHAMPIONED AMERICA'S OBLIGATION TO MAINTAIN MILITARY SUPREMACY IN AN UNSTABLE POSTCOLD WAR WORLD THE NORTH AMERICAN FREE TRADE AGREEMENT THE RIGHT OF PARENTS TO SCHOOL CHOICE FOR THEIR CHILDREN AND THE FREEDOM OF WOMEN TO DECIDE FOR THEMSELVES WHETHER THEY WANT BREAST IMPLANTS WE OPPOSED MORE GOVERNMENT SPENDING HIGHER TAXES THE FDA'S REGULATORY SWAMP AND BYZANTINE EPA RULES GOVERNING THE NATION'S REAL SWAMPS AND OTHER WETLANDS OUR EDITORIALS BACKED LEGAL REFORM CAPITAL GAINS TAX CUTS THE PRESIDENTIAL LINEITEM VETO AND TERM LIMITS FOR CONGRESS THEY REJECTED THE TRENDINESS OF MUCH OF MODERN EDUCATION THE ALLURE OF NATIONAL INDUSTRIAL POLICIES AND THE GERRYMANDERING OF CONGRESSIONAL DISTRICTS INTO NEW RACIAL ENCLAVES LIKELY TO ERODE RATHER THAN EXPAND MINORITY LEVERAGE IN OUR POLITICAL SYSTEM IN KEEPING WITH LONGSTANDING TRADITION THE JOURNAL ENDORSED NO CANDIDATE FOR ELECTION LAST FALL THOUGH OUR EDITORIALS OFFERED READERS A CRITICAL ASSESSMENT OF EACH JOURNAL EDITORIALS FAVORED PRAYER IN PUBLIC SCHOOLS BUT OPPOSED USING CLASSROOMS AS VENDING MACHINES FOR CONDOMS WE DEFENDED FREE SPEECH ON AMERICAN CAMPUSES AND ACROSS AMERICAN SOCIETY BUT CRITICIZED TIMEWARNER FOR INVOKING FREE SPEECH TO DEFEND THE COMMERCIAL DISTRIBUTION OF ITS COP KILLER ALBUM MORE BROADLY OUR EDITORIAL BOARD ARGUED FOR MORE PERSONAL RESPONSIBILITY AND FOR LESS EMPHASIS ON GROUP RIGHTS FOR MORE ATTENTION TO MORALITY AND LESS ON LEGALITIES WE MAINTAINED THAT MORAL COMPASSES MUST GUIDE INDIVIDUALS AND SOCIETIES AND WE DECRIED THE DOWHATEVERMAKESYOUFEELGOOD ETHOS THE NOTION WE ALL HAVE DIFFERENT NEEDS AND WHO'S TO SAY WHAT'S GOOD AND WHAT'S BAD AND ALWAYS WE REMINDED READERS THAT AMERICA'S GOVERNMENT IS A CREATION OF ITS PEOPLE DERIVING POWER FROM THEM RATHER THAN DISPENSING IT TO THEM AND THAT WEALTH IS CREATED BY THE LABORS OF INDIVIDUALS RATHER THAN DISTRIBUTED TO THEM BY SOME SUPREME SANTA CLAUS ALL OF THIS AND MORE WAS LAID OUT WITH CLARITY AND CONVICTION READERS WERE FREE TO AGREE OR DISAGREE WITH OUR EDITORIAL VIEWS AND MANY DID BOTH IN THE NEARLY 100000 LETTERS TO THIS PAPER LAST YEAR BUT READERS WERE NEVER IN DOUBT AS TO WHERE THIS EDITORIAL PAGE STOOD THE JOURNAL'S EDITORIAL VIEWS DO NOT GUIDE OR EVEN INFLUENCE THE PAPER'S NEWS COVERAGE READERS FREQUENTLY SEE DIFFERENCES BETWEEN THE TWO AS INDEED THEY SHOULD THE NEWS PAGES EXIST TO ACCURATELY COVER AND IMPARTIALLY ANALYZE EVENTS AND TRENDS THE EDITORIAL PAGE WHILE OFTEN DOING ITS OWN REPORTING FILTERS EVENTS THROUGH ITS PHILOSOPHIC LENS AND EXPRESSES OPINIONS ACCORDINGLY THE TWO PARTS OF THIS PAPER HOWEVER SHARE THE FUNDAMENTAL VALUES OF INTEGRITY AND OF INDEPENDENCE FROM PRESSURES CONVENTIONS PACK JOURNALISM AND SUPERFICIALITY THAT HAVE REDUCED MUCH OF THE MEDIA TO MEDIOCRITY IT IS THIS WILLINGNESS TO STAND APART AND SOMETIMES ALONE THAT DISTINGUISHES THE JOURNAL AND THAT IS THE PRIMARY REASON FOR THE TRUST READERS PLACE IN US YOU ARE AMONG NEARLY TWO MILLION INDIVIDUALS WHO BUY THE GLOBAL JOURNAL AND THE MORE THAN FIVE AND A HALF MILLION WHO READ IT EACH BUSINESS DAY CLEARLY YOU ARE AN INDEPENDENT AND DIVERSE GROUP OF MEN AND WOMEN WHO MUCH AS YOU MAY RELY ON THE JOURNAL FOR NEWS AND VALUE ITS VIEWS ALWAYS THINK FOR YOURSELVES YOU ARE SPREAD ACROSS THE UNITED STATES AND AROUND THE WORLD INCLUDING SOME 100000 SUBSCRIBERS AND NEWSSTAND BUYERS OF THE ASIAN WALL STREET JOURNAL AND THE WALL STREET JOURNAL EUROPE YOU INCLUDE CEOS SENATORS WORLD LEADERS AND OTHER PUBLIC FIGURES LEADING THE NEWSPAPER TO BE RECOGNIZED IN A RECENT INDEPENDENT SURVEY OF OPINION LEADERS AS THE MOST INFLUENTIAL PRINT MEDIUM BUT THE JOURNAL IS NOT THE PRESERVE OF SOME POWER ELITE FOR EXAMPLE MORE THAN 40 OF YOU ARE ENTREPRENEURS OR OTHERS MANAGING COMPANIES WITH FEWER THAN 100 EMPLOYEES MORE THAN 90 OF YOU ARE COLLEGE EDUCATED YOUR HOUSEHOLD INCOME AVERAGES 170000 A YEAR AND HOUSEHOLD NET WORTH MORE THAN 11 MILLION BUT COLLECTIVELY YOU ALSO INCLUDE INDIVIDUALS FOR WHOM THE SUBSCRIPTION PRICE IS A GENUINE SACRIFICE WORTH PAYING AS SUBSCRIBERS YOU SPEND ON AVERAGE 47 MINUTES A DAY READING THE PAPER YOU ALSO RENEW YOU SUBSCRIPTIONS YEAR AFTER YEAR AT RATES UNPARALLELED IN PUBLISHING YOU COMPRISE AN EXTRAORDINARY AUDIENCE THAT WE ARE PROUD TO SERVE OUR GOAL IN PUBLISHING THE JOURNAL FOR YOU IS NOT IN FACT TO BE MOST INFLUENTIAL BUT RATHER TO BE YOUR MOST HONEST AND THUS TRUSTED SOURCE OF ESSENTIAL NEWS SO WE'RE GRATIFIED ABOVE ALL BY SURVEYS THAT CONSISTENTLY RECOGNIZE THE JOURNAL AS THE MOST TRUSTED NEWS MEDIUM TO ALL WHO SUPPORT THE JOURNAL INCLUDING OUR VALUED ADVERTISERS BUT ABOVE ALL TO YOU OUR READERS WE EXPRESS OUR APPRECIATION OUR DEDICATION TO FURTHER ENHANCING AND IMPROVING THIS NEWSPAPER AND OUR BEST WISHES TO YOU AND YOUR FAMILIES FOR 1993 9301120009 930112 HEARD ON THE STREET NEW FUND FOR GERMAN GOVERNMENT BONDS CAUSES SOME TO WORRY ABOUT CURRENCY RISK BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL INVESTMENT ADVISERS KEEP BOMBARDING US INVESTORS WITH ONE MESSAGE WAKE UP TO THE OPPORTUNITIES IN OVERSEAS STOCK AND BOND MARKETS AND NOW OUT OF THE AMERICAN WEST COMES AN OPPORTUNITY TO DO JUST THAT IN PASADENA CALIF THE HUNTINGTON GROUP OF MUTUAL FUNDS HAS JUST INTRODUCED A MUTUAL FUND DESIGNED TO INVEST PRIMARILY IN GERMAN GOVERNMENT BONDS OR BUNDS BUT GUESS WHAT NOW THE PROFESSIONALS ARE WARNING SMALL INVESTORS TO WAKE UP TO THE DANGERS OF INVESTING IN GERMAN BONDS FROM A US INVESTOR'S POINT OF VIEW BUNDS AREN'T A GREAT DEAL SAYS JAN LOEYS AN INTERNATIONAL ECONOMIST AT JP MORGAN & CO IN LONDON SINCE THE EXPERIENCE OF THE 1920S WHEN GERMANS BOUGHT GROCERIES WITH WHEELBARROWS FULL OF CASH BECAUSE OF HYPERINFLATION GERMANY HAS BEEN KNOWN FOR ITS INFLATIONFIGHTING RESOLVE THAT'S A GOOD OMEN FOR BONDS BUT THERE'S A BIGGER PROBLEM FACING AMERICAN INVESTORS TODAY IT'S CALLED CURRENCY RISK THE PROBLEM MR LOEYS AND OTHER ANALYSTS CONTEND IS THAT WHILE YIELDS IN THE GERMAN BOND MARKET INDEED MAY BE HEADED SOUTH AND THUS PRICES ON GERMAN BONDS MAY BE HEADED HIGHER MOST FORECASTS HAVE THE MARK FALLING AGAINST THE US DOLLAR IF THEY ARE RIGHT THEN A US INVESTOR'S GERMAN SECURITIES WILL BE WORTH LESS WHEN MEASURED IN DOLLAR TERMS THE NEW FUND CALLED THE HUNTINGTON GERMAN GOVERNMENT BOND FUND WILL INVEST 75 OF ASSETS IN DEBT ISSUES OF THE GERMAN GOVERNMENT ITS AGENCIES AND THOSE OF LOCAL GOVERNMENTS IT ALSO CAN BUY BONDS GUARANTEED BY THE GERMAN GOVERNMENT THE FUND'S INVESTMENT ADVISER AND MANAGER IS BANKERS TRUST CO A MINIMUM INITIAL INVESTMENT IS 2500 1000 FOR RETIREMENT ACCOUNTS THE FUND IMPOSES A 3 UPFRONT SALES CHARGE AND ANNUAL FEES OF 1 THE SALES CHARGE CAN BE REDUCED FOR INVESTMENTS OF 50000 OR MORE WE THINK THERE IS SIGNIFICANT DEMAND AMONG INDIVIDUALS AND SMALLER INSTITUTIONS TO PARTICIPATE IN THE GERMAN GOVERNMENT BOND MARKET SAYS DONALD P GOULD HUNTINGTON'S PRESIDENT IN PASADENA IT'S APPROXIMATELY A 500 BILLION MARKET YET IT ISN'T THAT ACCESSIBLE TO THE SMALLER INVESTOR SPARKING DEMAND HE SAYS IS THAT GERMAN YIELDS NOW ABOUT 71 FOR 10YEAR DEBT ARE COMPETITIVE WITH US BOND YIELDS MOREOVER HE SAYS THERE'S A GENERAL BELIEF THAT GERMAN RATES ARE GOING TO CONTINUE TO DECLINE WHILE US RATES MAY IN FACT BE RISING THIRDLY HE SAYS MANY INVESTORS ARE INTERESTED IN BROADENING THEIR PORTFOLIOS BY INVESTING IN SOME OTHER CURRENCIES US INVESTORS DESIRING GERMAN BONDS ALREADY CAN BUY THEM FROM BIG US BROKERS SUCH AS MERRILL LYNCH & CO BUT THERE'S USUALLY A FAIRLY STEEP MINIMUM TRANSACTION SIZE IN MERRILL'S CASE IT'S 25000 JACK LYNESS LONDONBASED HEAD OF OFFSHORE DEBT SALES AND TRADING FOR MERRILL SAYS THAT THE DIFFERENCE BETWEEN WHAT AN INDIVIDUAL INVESTOR AND AN INSTITUTION WOULD PAY FOR THE BONDS IS SO SMALL IT ISN'T EVEN MEASURABLE NONETHELESS MR GOULD CONTENDS THAT HIS COMPANY'S NEW FUND PROVIDES AMERICANS AN EASIER WAY TO INVEST IN THE GERMAN GOVERNMENT BOND MARKET THAT MAY BE BUT THE TIMING STINKS SAY ANALYSTS A SLOWING ECONOMY AND FISCAL RESTRAINT SHOULD LEAD TO A CONTINUED BOND RALLY IN GERMANY SAYS KERMIT L SCHOENHOLTZ AN INTERNATIONAL ECONOMIST AT SALOMON BROTHERS IN LONDON LATER IN THE FIRST QUARTER HE EXPECTS A SIZABLE EASING OF MONETARY POLICY BY GERMANY'S CENTRAL BANK STILL THE WEAKNESS OF THE GERMAN ECONOMY COMING AT A TIME WHEN THE US IS IN RECOVERY ALSO POINTS TO FURTHER WEAKENING OF THE DEUTSCHEMARK AGAINST THE DOLLAR BY YEAREND ANALYSTS AT SG WARBURG IN LONDON PREDICT THE DOLLAR WILL TRADE AT ABOUT 185 MARKS UP 13 GEORGE MAGNUS THE FIRM'S CHIEF INTERNATIONAL FIXEDINCOME ECONOMIST SAYS THERE'S A CHANCE THAT THE DOLLAR COULD SOAR AS HIGH AS TWO MARKS UP 23 IN ADDITION BOTH WARBURG AND JP MORGAN ENVISION BENCHMARK 10YEAR GERMAN GOVERNMENT BONDS YIELDING ROUGHLY 675 AS 1993 ENDS THAT'S ONLY A SMALL FALL FROM HERE SAYS MR MAGNUS A DEUTSCHEMARK FUND MAY NOT BE PARTICULARLY ATTRACTIVE THIS YEAR THE NEW HUNTINGTON FUND DOESN'T HEDGE CURRENCY RISK WE WANT THIS TO BE A VERY STRAIGHTFORWARD PRODUCT SAYS MR GOULD HE ADDS THAT A GERMAN BOND FUND HOLDER CAN SWITCH AT ESSENTIALLY NO COST INTO A US OR MULTICURRENCY MONEY MARKET FUND MR MAGNUS PREDICTS THAT OVER THE NEXT 12 MONTHS AN AMERICAN INVESTOR WHO BUYS 10YEAR GERMAN GOVERNMENT BONDS AND DOESN'T HEDGE HIS CURRENCY RISK IS GOING TO LOSE ABOUT 2 WHEREAS IF HE STAYS AT HOME WE THINK HE'LL MAKE CLOSE TO A 9 RETURN MR GOULD RESPONDS THIS FUND ISN'T HERE JUST FOR THE NEXT THREE MONTHS AND THE TIMING OF IT ISN'T INTENDED TO REPRESENT INVESTMENT ADVICE BUT EVEN SOME AT BANKERS TRUST AREN'T HOT ON GERMAN BONDS AS ONE SENIOR BANKERS TRUST ECONOMIST PUTS IT THE CURRENCY IS A VERY VERY CONSIDERABLE RISK IF US INVESTORS HAD GONE NAKED INTO GERMAN BUNDS IN 1992 THEY WOULD HAVE LOST THEIR SHIRTS 9301120008 930112 SUITS AGAINST PARTNERS IN REAL ESTATE VENTURE ARE DEALT A SETBACK NEW YORK A FEDERAL JUDGE DISMISSED THE BULK OF THE CLAIMS MADE IN LAWSUITS FILED BY INVESTORS IN 14 REAL ESTATE PARTNERSHIPS SYNDICATED BY INTEGRATED RESOURCES INC THE INVESTORS ARE SEEKING MILLIONS OF DOLLARS IN DAMAGES CHIEFLY FROM THE MANAGING PARTNERS SELECTED BY INTEGRATED TO RUN EACH OF THE REAL ESTATE DEALS INTEGRATED A NATIONAL SYNDICATOR OF REAL ESTATE PARTNERSHIPS THAT FILED FOR BANKRUPTCYCOURT PROTECTION IN 1990 WAS NOT AMONG THOSE SUED US DISTRICT JUDGE ROBERT W SWEET SAID THE INVESTOR LAWSUITS HAD EITHER BEEN FILED TOO LATE OR MADE INSUFFICENT ALLEGATIONS AGAINST THE GENERAL PARTNERS TO BE CONSIDERED UNDER FEDERAL SECURITIES LAWS JUDGE SWEET FOUND THAT THE INVESTORS WHOM HE DESCRIBED AS SOPHISTICATED INDIVIDUALS WITH A HIGH NET WORTH WAITED TOO LONG AFTER INTEGRATED'S TROUBLES BECAME PUBLIC BEFORE DECIDING TO FILE SUIT AGAINST THE GENERAL PARTNERS JUDGE SWEET HASN'T YET RULED ON WHETHER HE'LL ALLOW THE INVESTORS TO PROCEED ON CLAIMS THAT THE GENERAL PARTNERS VIOLATED THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW IN ADDITION JUDGE SWEET WHO WAS APPOINTED BY THE FEDERAL JUDICIARY'S MULTIDISTRICT LITIGATION PANEL TO HANDLE ALL LAWSUITS BROUGHT BY INVESTORS IN INTEGRATED RESOURCES SYNDICATIONS STILL HAS TO RULE ON NUMEROUS CASES FILED AFTER THESE FIRST 14 STEVEN M PESNER A NEW YORK ATTORNEY WHO REPRESENTED MANY OF THE GENERAL PARTNERS SAID THE DECISION WAS AN ENORMOUS WIN FOR REAL ESTATE SYNDICATORS MR PESNER ADDED THAT THE DECISION WILL MAKE IT MORE DIFFICULT FOR INVESTORS DISGRUNTLED BY A DOWNTURN IN THE REAL ESTATE MARKET TO SUE THE MANAGERS OF PARTNERSHIPS 9301120007 930112 US AGENCY BACKS JOINTOPERATION PLAN FOR NORTHWEST KLM WASHINGTON THE TRANSPORTATION DEPARTMENT APPROVED PLANS BY NORTHWEST AIRLINES AND KLM ROYAL DUTCH AIRLINES TO INTEGRATE SERVICES AND OPERATE AS IF THEY WERE A SINGLE AIRLINE AS PART OF THE APPROVAL THE DEPARTMENT GRANTED THE CARRIERS ANTITRUST IMMUNITY TENTATIVE APPROVAL WAS GIVEN NOV 16 A SOCALLED OPEN SKIES AGREEMENT BETWEEN THE US AND THE NETHERLANDS WHICH ALLOWS US AIRLINES AND KLM TO FLY BETWEEN POINTS IN THE TWO COUNTRIES WITHOUT RESTRICTION WAS REACHED IN SEPTEMBER THE PACT DIRECTED GOVERNMENT REGULATORS IN BOTH COUNTRIES TO GIVE PROMPT AND SYMPATHETIC CONSIDERATION TO ANTITRUSTIMMUNITY REQUESTS CURRENTLY KLM HOLDS ABOUT 20 OF THE COMMON STOCK AND 105 OF THE VOTING RIGHTS OF WINGS HOLDINGS INC NORTHWEST'S PARENT IN ADDITION THE DUTCH CARRIER HOLDS PREFERRED STOCK WHICH INCREASES ITS EQUITY STAKE TO ABOUT 49 THE MAXIMUM ALLOWED BY US LAW THE TRANSPORTATION DEPARTMENT SAID THE NORTHWESTKLM AGREEMENT SHOULD BENEFIT THE PUBLIC BY PROVIDING BETTER SERVICE AND ENABLING THE CARRIERS TO REDUCE COSTS AND OPERATE MORE EFFICIENTLY THE DEPARTMENT WILL REQUIRE THE CARRIERS TO RESUBMIT THE AGREEMENT FOR REVIEW IN FIVE YEARS THE AGREEMENT INCLUDES A JOINT MARKETING OPERATION COORDINATION OF SCHEDULES AND PRICES AND SHARED REVENUES FROM JOINT SERVICES JOHN DASBURG NORTHWEST AIRLINES' PRESIDENT AND CHIEF EXECUTIVE AND PIETER BOUW KLM ROYAL DUTCH AIRLINES PRESIDENT PRAISED THE DECISION NOW THAT THE ANTITRUST IMMUNITY HAS BEEN APPROVED NORTHWEST AND KLM WILL MOVE TO LINK ROUTE SYSTEMS AND OPERATIONS TO CREATE A SEAMLESS' FLIGHT EXPERIENCE FOR TRAVELERS AND SHIPPERS AROUND THE GLOBE THEY SAID IN A JOINT STATEMENT 9301120006 930112 WHO'S NEWS LECHTERS INC LECHTERS INC HARRISON NJ MICHAEL F ANTHONY 37 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AT THIS SPECIALTY RETAILER OF HOUSEWARES MR ANTHONY WHO HAD BEEN VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER FILLS A POSITION VACANT SINCE JUNE JANE GILMARTIN 37 SUCCEEDS MR ANTHONY SHE HAD BEEN DIVISIONAL MERCHANDISE MANAGER FOR GIFTS 9301120005 930112 LAW JUSTICES ALLOW RULING ON LOOSER ADHERENCE TO FEDERAL CONTRACTS WASHINGTON THE SUPREME COURT REFUSED TO DISTURB A LOWERCOURT RULING THAT SAID FEDERAL GOVERNMENT CONTRACTORS MAY AVOID COMPLYING STRICTLY WITH CONTRACT TERMS IF DOING SO WOULD BE EXPENSIVE AND WASTEFUL THE GOVERNMENT HAD APPEALED THE RULING WARNING THAT IT WOULD MAKE IT MORE DIFFICULT FOR US AGENCIES TO ADMINISTER BILLIONS OF DOLLARS OF CONTRACTS EACH YEAR UNDER PRIVATE CONTRACT LAW PARTIES MAY GET OUT OF FOLLOWING THE PRECISE TERMS OF AN AGREEMENT IF IT WOULD ENTAIL HUGE EXPENSE AND WASTE IN CONTRAST THE FEDERAL GOVERNMENT FOR DECADES COULD DEMAND STRICT COMPLIANCE FOR WORK DONE FOR US AGENCIES REGARDLESS OF COST THE DECISION BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON ELIMINATED THE EXCEPTION FOR THE FEDERAL GOVERNMENT IT IS EFFECTIVELY THE LAST WORD ON THE ISSUE BECAUSE THE FEDERAL CIRCUIT IS THE EXCLUSIVE FORUM FOR APPEALS OF NEARLY ALL GOVERNMENT CONTRACT DISPUTES US VS GRANITE CONSTRUCTION CO SEPARATELY THE SUPREME COURT LET STAND AN APPEALS COURT RULING THAT SAID MASSACHUSETTS COULDN'T REGULATE LATE FEES IMPOSED BY CREDITCARD ISSUERS BASED IN OTHER STATES THE US COURT OF APPEALS FOR THE FIRST CIRCUIT IN BOSTON HAD SAID A FEDERAL LAW THAT PRECLUDES STATES FROM RESTRICTING INTEREST CHARGED BY FEDERALLY INSURED BANKS BASED ELSEWHERE ALSO BARS PROHIBITION OF LATE FEES IN ADDITION TO MASSACHUSETTS THE FIRST CIRCUIT DECISION IS BINDING IN MAINE NEW HAMPSHIRE RHODE ISLAND AND PUERTO RICO THE ISSUE OF STATES' AUTHORITY TO REGULATE LATE CHARGES WILL PROBABLY BE CHALLENGED IN OTHER JURISDICTIONS AND IS LIKELY TO COME BEFORE THE HIGH COURT AGAIN MASSACHUSETTS VS GREENWOOD TRUST CO 9301120004 930112 NEW FLIGHT PLAN BIG AIRLINES SCALE BACK HUBAIRPORT SYSTEM TO CURB RISING COSTS TRAFFIC GAINS TRAIL FORECASTS PASSENGERS SHIPPERS FIND SERVICE HAS DETERIORATED A STRUGGLE FOR MARKET SHARE BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL THE AIRLINE INDUSTRY'S HUBANDSPOKE SYSTEM HAS DELIVERED MORE PASSENGERS TO MORE DESTINATIONS WITH MORE FREQUENT FLIGHTS THAN ANY OTHER ROUTE SYSTEM EVER DEVELOPED BUT THE HIGHFLYING INNOVATION OF THE 1980S IS LOSING ALTITUDE IN THE 1990S HURT BY HUGE LOSSES AIRLINES ARE SCALING BACK THEIR HUBANDSPOKE SYSTEMS MUCH LIKE MANUFACTURERS SHEDDING PRODUCTION LINES SEVERAL SMALLER HUBS WERE ELIMINATED LAST YEAR INCLUDING THOSE AT DAYTON OHIO MILWAUKEE AND WASHINGTON'S NATIONAL AIRPORT OF THE 32 REMAINING HUBS SEVEN TO 10 WILL VANISH WITHIN A FEW YEARS PREDICTS MICHAEL BOYD OF AVIATION SYSTEMS RESEARCH CORP A DENVER CONSULTING FIRM MOREOVER CARRIERS ARE DROPPING SOME ROUTES ESPECIALLY TO AND FROM THE SPOKES THE SMALLER AIRPORTS THAT CARRY PASSENGERS INTO AND OUT OF THE MUCHLARGER HUBS THE AIRLINES ALSO ARE CUTTING THE FREQUENCY OF FLIGHTS ON OTHER ROUTES AND REDEPLOYING PLANES TO THEIR LARGEST HUBS INCREASING THE CONGESTION AT THE BUSIEST AIRPORTS AND AT SMALLER FIELDS THEY ARE REPLACING COMMODIOUS JETS WITH CRAMPED TURBOPROPS AS AIRLINES TRY TO RESTORE PROFITS THE US INDUSTRY'S LOSSES IN THE PAST THREE YEARS TOTAL ABOUT 8 BILLION THEIR PASSENGERS WILL FEEL THE SQUEEZE ALREADY THEY ARE SEEING REDUCED MEAL SERVICE AND HIGHER FEES FOR REPLACING LOST TICKETS BUT FEW CHANGES WILL AFFECT PASSENGERS MORE THAN THE CUTBACKS IN HUB SERVICE AFTER ELIMINATING ITS MONEYLOSING HUB AT DAYTON USAIR REDUCED ITS FLIGHTS THERE BY 66 AND ENDED NONSTOP SERVICE TO CITIES IN CALIFORNIA FLORIDA AND NEW ENGLAND PLUS MANY SMALL MIDWEST CITIES NOW MOST OF ITS FLIGHTS FROM DAYTON GO TO ITS REMAINING HUBS IN PITTSBURGH PHILADELPHIA INDIANAPOLIS AND CHARLOTTE NC IN DAYTON PASSENGERS AND FREIGHT SHIPPERS QUICKLY NOTICED THE DIFFERENCE IN NOVEMBER DEBBY SIBERT AN ADVERTISING EXECUTIVE FLEW USAIR FROM BOSTON TO DAYTON BUT INSTEAD OF HER USUAL TWOHOUR NONSTOP HOP SHE HAD TO CATCH A CONNECTING FLIGHT IN THE CARRIER'S PITTSBURGH HUB THERE SHE WAITED THREE HOURS BEFORE BEING TOLD THAT HER DAYTON FLIGHT HAD BEEN CANCELED THEN USAIR FLEW HER TO PHILADELPHIA 300 MILES IN THE WRONG DIRECTION AND EVENTUALLY PUT HER ON A FLIGHT TO DAYTON SHE GOT HOME AT 11 PM AFTER MORE THAN 11 HOURS OF TEDIUM DAYTON COMPANIES ALSO ARE BEING INCONVENIENCED OHIO ELECTRONIC ENGRAVERS INC A MAKER OF ELECTRONIC ENGRAVING INSTRUMENTS SENDS CIRCUIT BOARDS AND OTHER PARTS VIA USAIR TO CUSTOMERS IN PLACES SUCH AS KALAMAZOO MICH AND RICHMOND VA BUT NOW ITS PRODUCTS LIKE USAIR PASSENGERS CHANGE PLANES AT THE AIRLINE'S REMAINING HUBS SHIPMENT TIMES HAVE AT LEAST TRIPLED GRUMBLES ROBERT KELLEY AN OHIO ELECTRONIC SERVICE ENGINEER WHO ADDS THAT CUSTOMERS CAN SUFFER IF OUR EQUIPMENT BREAKS AND THEIR MACHINE IS DOWN THEY AREN'T MAKING ANY MONEY A PRODUCT OF DEREGULATION THE HUB SYSTEM WAS INITIALLY A GREAT SUCCESS IT ENABLED MAJOR AIRLINES TO ENVELOP HUGE GEOGRAPHICAL REGIONS LIKE GIANT SPIDERWEBS SNARE PASSING TRAFFIC AND EXPAND MARKET SHARE BY REPLACING LINEAR ROUTES IT MULTIPLIED CUSTOMERS' FLIGHT OPTIONS AND CUSTOMERS AMERICAN AIRLINES FOR EXAMPLE HAS 455 DAILY DEPARTURES FROM DALLAS/FORT WORTH INTERNATIONAL AIRPORT COMPARED WITH 137 IN PREHUB 1979 HUBS ALSO INTEGRATED REMOTE CITIES INTO A NATIONAL AND INTERNATIONAL ROUTE NETWORK BUT THE SYSTEM WORKED IN THE 1980S ONLY BECAUSE A BOOM IN DEMAND WAS FILLING THE GROWING NUMBER OF FLIGHTS GENERATED BY THE HUBS WHEN DEMAND FELL DURING THE RECESSION THE AIRLINES FOUND THEY HAD BADLY OVERESTIMATED FUTURE TRAFFIC GROWTH AND MANY HUBS TURNED INTO WHITE ELEPHANTS BECAUSE THEY REQUIRE HEAVY VOLUME TO OFFSET THEIR STEEP COSTS AND THE COST PRESSURES WERE INTENSIFIED BY THE SOARNG PRICES FOR THE LARGE FLEETS OF PLANES FLYING IN AND OUT OF MAJOR HUBS THE UPSHOT AIRLINES NOW HAVE TOO MANY HUBS TOO CLOSE TOGETHER VYING FOR THE SAME CUSTOMERS THEY ARE IN A DEATH MARCH FOR MARKET SHARE SAYS JOHN GAREL VICE PRESIDENT OF MARKET DEVELOPMENT FOR NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC NOT COINCIDENTALLY THE ONE BIG CARRIER THAT SHUNNED THE HUBANDSPOKE SYSTEM SOUTHWEST AIRLINES IS THE INDUSTRY'S MOST PROFITABLE THOUGH SOUTHWEST ALSO BENEFITS FROM ITS LOW LABOR COSTS AND NOFRILLS SERVICE DESPITE THE CURRENT LOSSES AIRLINES CLOSE A HUB ONLY AS A LAST RESORT CREATING ONE REQUIRES ADDITIONAL OFFICE SPACE PERSONNEL AIRCRAFT AND LONGTERM LEASES ON GATES SO DEEPSIXING ALL THAT CAN BE VERY COSTLY IN ADDITION MANY MONEYLOSING HUBS SERVE IN EFFECT AS LOSSLEADERS HELPING BUILD A NATIONAL NETWORK THAT MAKES THE FORTRESS HUBS ALL THE MORE POWERFUL AS A RESULT INDUSTRY EXECUTIVES SAY THAT IF PASSENGER TRAFFIC AND PROFITS REBOUND STRONGLY HUB CUTBACKS WILL BE MINIMIZED BUT THE CARRIERS ARE CLEARLY RETRENCHING IN THE PAST MONTH DELTA AIR LINES UAL CORP'S UNITED AIRLINES AND NORTHWEST ALL HAVE ANNOUNCED WORKFORCE REDUCTIONS LAST WEEK UNITED FOR EXAMPLE SAID IT WILL LAY OFF 2800 EMPLOYEES AND CANCEL PLANS TO HIRE ANOTHER 1900 IN A DRIVE TO CUT ANNUAL EXPENSES BY 400 MILLION UNITED AND DELTA AMONG OTHERS ALSO DISCLOSED AN INTENTION TO MAKE UNSPECIFIED ROUTE CUTBACKS IN THE FALL UNITED SAID IT WOULD SLASH 38 OF ITS HUB SERVICE AT WASHINGTON'S DULLES AIRPORT SOME OF THESE MOVES COULD HASTEN THE DEMISE OF MARGINAL HUBS EXPERTS SAY BECAUSE SCATTERED REDUCTIONS IN FLIGHTS THOUGH SAVING SOME MONEY SAP THE REVENUE NEEDED TO OFFSET THE HIGH COSTS OF A HUB AND UNDERMINE THE BASIC RATIONALE FOR IT IT'S VERY HARD TO DOWNSIZE A HUB SAYS DAVE ULMER VICE PRESIDENT OF PLANNING FOR ROBERTS & ASSOCIATES AN AIRLINE CONSULTING FIRM IN SAN FRANCISCO EVERY TIME YOU PULL OUT OF A SPOKE YOU LOSE CONNECTING TRAFFIC AND THEN THE SYNERGIES OF THE HUB BEGIN TO UNRAVEL THE MOST VULNERABLE HUBS AND THE WEAKEST PERFORMERS ARE THOSE IN SMALLER CITIES THAT DON'T ON THEIR OWN GENERATE A LOT OF TRAFFIC AMONG THEM ARE AMERICAN'S HUBS IN NASHVILLE TENN RALEIGHDURHAM NC AND SAN JOSE CALIF AT MEMPHIS TENN NORTHWEST HAS CUT SERVICE BUT STILL OPERATES A HUB BECAUSE THE AIRPORT SERVES NUMEROUS DESTINATIONS ALSO IN PERIL ARE HUBS OPERATED BY CARRIERS IN CHAPTER 11 BANKRUPTCY PROCEEDINGS CONTINENTAL AIRLINES A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC IS THE ONLY HUB CARRIER IN HOUSTON CLEVELAND AND NEWARK NJ TRANS WORLD AIRLINES HAS THAT DISTINCTION IN ST LOUIS AMERICA WEST AIRLINES OPERATES HUBS IN PHOENIX AND LAS VEGAS AND A MINIHUB IN COLUMBUS OHIO THESE AIRLINES COULD EMERGE FROM CHAPTER 11 WITH REDUCED SERVICE ALL AIRLINES ARE RELUCTANT TO COMMENT SPECIFICALLY ON FUTURE HUB SERVICE ALTHOUGH AMERICAN A UNIT OF AMR CORP ACKNOWLEDGES THAT IT MAY ELIMINATE SOME SMALLER HUBS PASSENGERS WHO LIVE IN SMALL SPOKE CITIES WILL INCREASINGLY SUFFER AS AIRLINES SEVER THEIR SMALLTOWN TIES CARRIERS CAN REDUCE HUB SERVICE TO A SPOKE CITY EITHER BY ELIMINATING SERVICE ENTIRELY OR BY REDUCING CAPACITY BY FLYING SMALLER PLANES OR MAKING FEWER TRIPS AL MAHANEY HAS BEEN HIT BOTH WAYS THE PRESIDENT OF SOO TRACTOR SWEEPRAKE CO A FARMEQUIPMENT MAKER IN SIOUX CITY IOWA MR MAHANEY WOULD OFTEN FLY NONSTOP ON AMERICA WEST TO PHOENIX WHERE HE HAS A SECOND HOME HE COULD LEAVE SIOUX CITY ON FRIDAYS AT 330 PM AND REACH PHOENIX IN TIME FOR DINNER BUT TWO YEARS AGO AMERICA WEST ELIMINATED ITS SIOUX CITY SERVICE TO GET TO PHOENIX NOW MR MAHANEY USUALLY TAKES A 630 AM UNITED FLIGHT THROUGH ITS DENVER HUB THE TRIP TAKES SEVEN HOURS AND LONGER IF THERE ARE SNOW DELAYS IN DENVER DEPRIVED OF AMERICA WEST SERVICE MR MAHANEY SPENDS FEWER WEEKENDS AT HIS PHOENIX HOME AS WELL AS MORE NIGHTS IN HOTEL ROOMS ON WEST COAST TRIPS BECAUSE OF OTHER AIRLINES' LESS CONVENIENT SCHEDULES NOW A ONEDAY TRIP TO THE WEST COAST TAKES THREE DAYS OF TRAVEL HE SAYS MR MAHANEY FACES A DIFFERENT PROBLEM WHEN HE FLIES EAST FOR YEARS HE TOOK TWA'S WIDEBODY DC9S TO ITS ST LOUIS HUB BUT LAST YEAR HE BEGAN TAKING 30PASSENGER EMB120 BRASILIA TURBOPROPS ON TWA EXPRESS TWA'S COMMUTER SERVICE BAD ENOUGH THAT TURBOPROPS ARE SLOWER AND MR MAHANEY'S FLIGHT TIME FROM SIOUX CITY TO ST LOUIS BALLOONED TO AN HOUR AND 45 MINUTES FROM 55 MINUTES IN THE MUCH SMALLER TURBOPROPS MR MAHANEY WHO IS 6 FEET 7 INCHES TALL IS EVEN MORE SQUEEZED THAN USUAL WHEN I STAND UP MY SHOULDERS ARE ON THE CEILING HE SAYS OTHER AIRLINES ARE ALSO USING MORE TURBOPROPS AT ITS SAN JOSE HUB AMERICAN HAS WITHDRAWN 10 DAILY JET FLIGHTS AND SUBSTITUTED SEVEN COMMUTER FLIGHTS AND CUT CAPACITY 12 USAIR HAS MADE SIMILAR MOVES IN BALTIMORE INDUSTRY EXECUTIVES SAY COMMUTER PLANES CAN GET IN AND OUT OF AIRPORTS MORE QUICKLY THAN CUMBERSOME JETS WHICH TAKE MORE TIME TO REFUEL AND TURN AROUND THAT TURBOPROPS ARE SLOWER THAN JETS IS USUALLY IMMATERIAL THEY ADD BECAUSE THE SMALLER PLANES PRIMARILY FLY SHORTHAUL ROUTES THE AIRLINES ALSO DISMISS CONCERNS THAT TURBOPROPS AREN'T AS SAFE AS JETS BUT SOME PASSENGERS FEEL QUEASY ABOUT FLYING SMALLER PLANES PARTICULARLY IN HEAVY WINDS MICHAEL BERGER OWNER OF ALL POINTS TRAVEL AGENCY IN SIOUX CITY SAYS SOME CUSTOMERS DRIVE AN HOUR AND A HALF TO OMAHA NEB FOR JET SERVICE RATHER THAN TAKE COMMUTER PLANES IN SIOUX CITY I DON'T ENJOY COMMUTERS EITHER BUT THEN AGAIN I DON'T ENJOY A ROLLER COASTER RIDE AT A CARNIVAL MR BERGER SAYS BY ELIMINATING HUB ROUTES OR FLYING SMALLER PLANES AIRLINES ACHIEVE SEVERAL GOALS THEY WRING OUT EXCESS CAPACITY SHRINK COSTS AND RAISE AVERAGE TICKET PRICES FARES GO UP BECAUSE WITH FEWER SEATS TO SELL THE CARRIERS DON'T HAVE TO UNLOAD THEM AT DISCOUNT PRICES AIRLINES ARE BECOMING LESS CONCERNED WITH THE PRICESENSITIVE PASSENGER SAYS MR BOYD THE CONSULTANT THEY'RE REALIZING THEY CAN'T CARRY PASSENGERS AT THAT LOW PRICE AND MAKE MONEY AND GERARD ARPEY SENIOR VICE PRESIDENT OF PLANNING AT AMERICAN SAYS EVENTUALLY THE AIRLINES HAVE TO FIGURE OUT A WAY TO PRODUCE MORE REVENUE AND THAT LIKELY MEANS HIGHER PRICES ONE WAY OR THE OTHER PEOPLE WHO LIVE IN FAIRLY LARGE CITIES SUCH AS ST LOUIS PHOENIX AND CLEVELAND WILL STILL GET DECENT SERVICE EVEN IF THEY LOSE THEIR HUBS THE VACUUM WILL BE PARTLY FILLED BY OTHER MAJOR CARRIERS REGIONAL AIRLINES OR INDEPENDENT COMMUTERS FOR EXAMPLE MIDWEST EXPRESS AIRLINES AN AIRLINE THAT CATERS TO BUSINESS TRAVELERS HAS ITS SOLE HUB IN MILWAUKEE THE AIRLINE A UNIT OF KIMBERLYCLARK CORP INCREASED ITS SERVICE TO WASHINGTON NEW YORK AND BOSTON AFTER NORTHWEST ELIMINATED ITS MILWAUKEE HUB AS A RESULT THE DECLINE IN AIR SERVICE AT LEAST FOR BUSINESS TRAVEL HAS BEEN MINIMAL SAYS DON DRAVES CORPORATE SERVICE MANAGER FOR MILLER BREWING CO IN MILWAUKEE BUT HUB CUTS WILL AFFECT ALL FLIERS WHETHER THEY PASS THROUGH THOSE DOWNSIZED AIRPORTS OR NOT THAT'S BECAUSE THE INDUSTRY IS REDEPLOYING PLANES AT ITS PROFITABLE FORTRESS HUBS WHICH WILL ABSORB THE ADDITIONAL PASSTHROUGH TRAFFIC USAIR FOR EXAMPLE ADDED NUMEROUS FLIGHTS TO PITTSBURGH AFTER ELIMINATING ITS DAYTON HUB HOWEVER ADDING FLIGHTS TO THE LARGEST AIRPORTS WHERE FLIGHT DELAYS AND CANCELLATIONS TEND TO BE HIGHER AS A PERCENTAGE OF TOTAL DEPARTURES WILL COMPOUND SCHEDULING PRESSURES AND CLOG TERMINALS TRAVELERS WILL HAVE TO GO THROUGH BIGGER HUBS AND EXPOSE THEMSELVES TO MORE DELAYS SAYS JOHN NELSON VICE PRESIDENT OF MARKETING FOR CONTINENTAL THE BIG COMPLEX FORTRESS HUBS HE SAYS ARE LESS CONSUMERFRIENDLY 9301120003 930112 GENERIC DRUG OFFICIAL ENTERS PLEA OF GUILTY IN CONSPIRACY CASE BALTIMORE SCOTT M FEUER A FOUNDER OF NOWDEFUNCT GENERIC DRUG FIRM QUANTUM PHARMICS LTD PLEADED GUILTY TO CONSPIRACY TO MAKE AND DISTRIBUTE AN UNAPPROVED GENERIC DRUG THE US ATTORNEY SAID MR FEUER OF ENGLEWOOD NJ AND A COFOUNDER OF THE AMITYVILLE NY COMPANY JINSHUNG CHANG WERE CHARGED IN SEPTEMBER 1992 WITH DISTRIBUTING AND CONSPIRING TO DISTRIBUTE AN ADULTERATED AND UNAPPROVED VERSION OF FENOPROPHEN AN ANTIINFLAMMATORY IN 1988 THE COMPANY WAS A SUBSIDIARY OF AMERICAN HOME PRODUCTS CORP MR FEUER ADMITTED ADDING AN UNAPPROVED PROCESS AND AN UNAPPROVED AMOUNT OF ONE INGREDIENT TO THE COMPANY'S FOOD AND DRUG ADMINISTRATIONAPPROVED FORMULA FOR THE DRUG AND THEN MARKETING THE CHANGED DRUG TO THE PUBLIC HE ALSO ADMITTED PARTICIPATING IN AN INTERNAL SCHEME AT THE COMPANY TO CONCEAL BY CHANGING RECORDS THE DEVIATIONS FROM THE ORIGINAL FORMULA JINSHUNG CHANG REMAINS A FUGITIVE THE US ATTORNEY'S OFFICE SAID THE CASE IS PART OF A CONTINUING FEDERAL INVESTIGATION OF THE GENERIC DRUG INDUSTRY AS PART OF HIS PLEA AGREEMENT WITH THE GOVERNMENT MR FEUER AGREED TO COOPERATE WITH THE INVESTIGATION THE MAXIMUM PENALTY FOR THE OFFENSE IS FIVE YEARS IN PRISON AND A 250000 FINE SENTENCING WAS SET BY FEDERAL JUDGE JOHN R HARGROVE FOR MARCH 23 ATTORNEYS FOR MR FEUER COULDN'T BE REACHED FOR COMMENT A SPOKESMAN FOR AMERICAN HOME SAID THE COMPANY HAD A MAJORITY STAKE IN QUANTUM FROM 1986 TO MID1988 BUT NOT OPERATIONAL CONTROL HE SAID AMERICAN HOME TOOK FULL OWNERSHIP IN MID1988 AND SHUT DOWN QUANTUM BY MID1989 BECAUSE OF THE FEDERAL INVESTIGATION AMERICAN HOME WAS NEVER CHARGED IN THE FEDERAL INVESTIGATION HE SAID 9301120002 930112 CREDIT MARKETS TREASURY BOND YIELD FALLS TO 744 AS INVESTORS PREPARE FOR ANOTHER WEEK OF HEAVY ISSUANCE BY TERENCE DONNELLY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DESPITE A SMORGASBORD OF NEW CORPORATE BOND OFFERINGS LAST WEEK INVESTORS SEEM READY FOR MORE THIS WEEK YESTERDAY'S OFFERINGS OF NEW CORPORATE DEBT TOTALED MORE THAN 125 BILLION BUT THAT MAY SEEM LIKE AN APPETIZER COMPARED WITH TODAY'S OFFERINGS THE BIGGEST A 3 BILLION OFFERING OF 10YEAR GLOBAL BONDS FROM THE PROVINCE OF ONTARIO WAS ACTUALLY LAUNCHED YESTERDAY BUT WILL END A 24HOUR SELLING PERIOD THIS MORNING THE SCHEDULED OFFERING WHICH WILL BE SOLD THROUGH A GROUP OF UNDERWRITERS LED BY SALOMON BROTHERS INC AND GOLDMAN SACHS & CO WILL BE THE LARGEST DOLLARDENOMINATED GLOBALBOND OFFERING EVER ACCORDING TO SECURITIES DATA CO ANOTHER HUGE PLANNED OFFERING WILL HOLD THE ATTENTION OF THE MUNICIPAL BOND MARKET TODAY THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY IS SCHEDULED TO SELL 16 BILLION OF NEW BONDS THROUGH A GROUP OF UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO MEANWHILE YESTERDAY TREASURY PRICES ENDED HIGHER WITH THE BENCHMARK 30YEAR TREASURY BOND RISING NEARLY 3/8 OF A POINT OR 375 FOR A BOND WITH 1000 FACE VALUE AS ITS YIELD FELL TO 744 FROM 747 AT FRIDAY'S CLOSE WHEN THE TREASURY MARKET PLUNGED THURSDAY THERE WERE FEARS THAT THE DELUGE OF NEW CORPORATE ISSUES HAD BEEN THE MAIN CULPRIT THOUGH A NUMBER OF CORPORATE UNDERWRITERS INSISTED THIS WASN'T THE CASE IT IS COMMON FOR CORPORATE UNDERWRITERS TO INSURE AGAINST PRICE DROPS ON NEW BONDS THEY ARE SELLING BY SHORTSELLING IN THE TREASURY MARKET WHEN AN UNDERWRITER SHORTSELLS HE SELLS A BORROWED NOTE OR BOND IN THE HOPE OF REPLACING IT LATER AT A LOWER PRICE POCKETING THE DIFFERENCE AND HEDGING AGAINST DROPS IN THE VALUE OF NEW CORPORATE BONDS HE IS TRYING TO SELL BUT WEAK DEMAND FOR NEW CORPORATE SECURITIES ISN'T A PROBLEM NOW SAYS JAMES QUIGLEY MANAGING DIRECTOR OF THE CORPORATE NEW ISSUANCE DESK AT MERRILL LYNCH & CO THE DEMAND SIDE OF THE EQUATION HAS BEEN UNDERESTIMATED BY THE SKEPTICS HE SAID MR QUIGLEY SAYS THERE IS ENOUGH DEMAND TO ABSORB AS MUCH AS 12 BILLION OF NEW CORPORATE SUPPLY WITHOUT PUSHING UP PRICES RELATIVE TO COMPARABLE TREASURY SECURITIES THE CONTINUED FLOOD OF NEW CORPORATE ISSUANCE IS FURTHER EVIDENCE THAT CORPORATE TREASURERS BELIEVE YIELDS FOR LONGTERM DEBT MATURING IN 10 YEARS OR MORE ARE UNLIKELY TO DROP MUCH FURTHER ACCORDING TO JOHN MADDEN ASSISTANT DEPUTY MINISTER IN THE ONTARIO TREASURER'S OFFICE STRONG DEMAND WAS THE REASON FOR BOOSTING THE SCHEDULED GLOBAL BOND DEAL TO 3 BILLION FROM A PLANNED 25 BILLION THE WORLDWIDE DEMAND WAS VERY DEEP AND VERY SOLID HE SAID WITH MOST DEMAND CONCENTRATED IN NORTH AMERICA GLOBAL BONDS ARE USUALLY SOLD IN OFFERINGS OF 1 BILLION OR MORE AND ARE OFTEN DENOMINATED IN DOLLARS THE SECURITIES ARE DESIGNED TO BE SOLD AND TRADED SIMULTANEOUSLY IN MAJOR EUROPEAN NORTH AMERICAN AND ASIAN MARKETS THE OFFERING WHICH COMES LESS THAN A WEEK AFTER THE WORLD BANK'S SUCCESSFUL 125 BILLION ISSUE OF 30YEAR GLOBAL BONDS IS EXPECTED TO SET A POSITIVE TONE FOR THE WAVE OF CORPORATE DEALS BUILDING IN THE WEEKS AHEAD BOND DEALERS SAID DEALERS PREDICTED THAT ONTARIO'S OFFERING WOULD BE WELL RECEIVED BY INVESTORS I THINK THE DEAL WILL BE CLOSE TO A BLOWOUT SAID MARK GRANT MANAGING DIRECTOR OF CAPITAL MARKETS AT RODMAN & RENSHAW INC THERE IS A SHORTAGE OF 10YEAR PAPER IN THAT SECTOR THE DEAL'S LIQUIDITY STEMMING FROM ITS GREAT SIZE IS ANOTHER POSITIVE FACTOR MR GRANT SAID MR MADDEN OF THE ONTARIO TREASURER'S OFFICE SAID THE OFFERING WAS LIKELY TO BE PRICED AT THE LOW END OF A SPREAD OF 076 TO 079 PERCENTAGE POINT OVER 10YEAR TREASURY NOTES THE 10YEAR TREASURY NOTE YIELDED JUST UNDER 666 AS OF LATE YESTERDAY FURTHER SPURRING DEMAND FOR THE ONTARIO DEAL IS THE SUCCESS OF THE WORLD BANK'S GLOBAL OFFERING LAST WEEK THE INTERNATIONAL LENDING ORGANIZATION PRICED A 125 BILLION ISSUE OF 7625 GLOBAL BONDS DUE 2023 TO YIELD 767 OR 028 PERCENTAGE POINT ABOVE THE TREASURY LONG BOND THE ISSUE CURRENTLY TRADES 023 PERCENTAGE POINT ABOVE TREASURYS AT THAT LEVEL THE YIELD ON ONTARIO BONDS WOULD BE ROUGHLY 010 PERCENTAGE POINT HIGHER THAN COMPARABLE CANADIAN YANKEE ISSUES TRADERS SAID THE CANADIAN PROVINCE OF NEW BRUNSWICK'S 7125 10YEAR NOTES CURRENTLY TRADE ABOUT 064 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE TRADERS SAID A YANKEE ISSUE IS A DOLLARDENOMINATED BOND SOLD IN THE US BY A FOREIGN ISSUER THE LAST 10YEAR GLOBAL NOTE ISSUE BY THE PROVINCE WAS A 2 BILLION OFFERING IN MAY ACCORDING TO MR MADDEN WHICH WAS PRICED AT A YIELD SPREAD OF 064 PERCENTAGE POINT OVER COMPARABLE TREASURYS A SIGN THAT ONTARIO GLOBAL NOTES ARE CHEAPER NOW GIVEN THE WIDER SPREAD ON THE CURRENT NEW ISSUE WHILE THE FOCUS REMAINED ON THE PRIMARY MARKET FOR CORPORATE BONDS SECONDARY PRICES ENDED 1/8 TO 1/4 POINT HIGHER YESTERDAY WITH THE YIELD GAP BETWEEN CORPORATE BONDS AND COMPARABLE TREASURYS HOLDING STEADY OR NARROWING SLIGHTLY A SIGN THAT DEMAND WAS STRONG FOR THE WAVE OF NEW ISSUES BROUGHT TO THE MARKET IN THE PAST WEEK JUNK BONDS WERE FLAT TO UP 1/8 POINT TRADERS SAID MARKET ACTIVITY IS EXPECTED TO BE LIGHT IN THAT SECTOR THIS WEEK BECAUSE MANY LARGE BUYERS OF JUNK BONDS ARE ATTENDING A HIGHYIELD CONFERENCE IN COLORADO SPONSORED BY SALOMON BROTHERS PRICES WERE GENERALLY UNCHANGED TO 1/8 POINT HIGHER IN QUIET ACTIVITY AMONG ACTIVELY TRADED ISSUES THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY'S 6 OF 2012 SERIES B REFUNDING BONDS FINISHED UNCHANGED AT 95 3/496 YIELDING 636 MUNI SPECIALISTS CITED THIS WEEK'S PRICING CALENDAR WHICH CONTAINS MORE THAN 3 BILLION AS A REASON FOR THE WEEK'S SLUGGISH START THERE ARE A LOT OF ISSUES ON THE PLATE THIS WEEK AND THE MOOD IS CAUTIOUS SAID STEPHEN MALFITANO MANAGER OF COWEN & CO'S MUNICIPAL BOND DEPARTMENT AMONG LARGE PLANNED OFFERINGS IS NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY'S 16 BILLION OF SERIES 1993 A AND B POWER SYSTEM BONDS MARKET ANALYSTS SAY THE ISSUE WILL BE A BENCHMARK FOR DEMAND IN THE NEAR FUTURE AND COULD DEPENDING UPON ITS SUCCESS LEAD TO A NEW WAVE OF MUNICIPAL BOND ISSUANCE A SMITH BARNEY GROUP IS EXPECTED TO SET YIELDS ON THE BONDS TODAY THE AGENCY INITIALLY ATTEMPTED TO SELL THE OFFERING SEPT 22 BUT THE PRICING WAS CANCELED BECAUSE OF A SLUMP IN THE MARKET THE ISSUE WILL INCLUDE ABOUT 117 MILLION SERIES 1993A POWER SYSTEM REVENUE BONDS FOR THE AGENCY'S PEAKING PROJECT AND THE 148 BILLION SERIES 1993B POWER SYSTEM REVENUE REFUNDING BONDS SERIES B MAY INCLUDE DERIVATIVES CALLED AUCTION RATE SECURITIES INVERSE RATE SECURITIES AND STRUCTURED YIELD CURVE NOTES AUCTION RATE SECURITIES AND INVERSE RATE SECURITIES ARE LINKEDRATE MUNICIPALBOND DERIVATIVES THEY ARE FORMED WHEN A TERM BOND IS DIVIDED INTO TWO EQUAL PARTS THE AUCTION RATE SECURITIES' YIELD WILL BE RESET AT AUCTIONS EVERY 35 DAYS THE YIELD FOR THE INVERSE RATE SECURITIES WILL ALSO CHANGE EVERY 35 DAYS DEPENDING ON WHAT HAPPENS TO THE ARS YIELD IF THE ARS YIELD RISES THE IRS YIELD WILL FALL AND CONVERSELY ISSUERS CAN BENEFIT FROM LINKEDRATE SECURITIES BY SECURING FIXED INTEREST RATES THAT ARE LOWER THAN THOSE THAT WOULD BE OBTAINED WITH STANDARD TERM BONDS THE FINAL MATURITY FOR THE ARS AND IRS THAT COULD BE INCLUDED IN THE NORTH CAROLINA ISSUE IS JAN 1 2023 THE STRUCTURED YIELD CURVE NOTES THAT MAY BE SOLD WILL BEAR INTEREST AT A VARIABLE RATE FOR A PERIOD OF TIME AND THEN THE RATE WILL BE FIXED THE FINAL MATURITY IS JAN 1 2018 WITH DEMAND RUNNING LOW NOW THE NORTH CAROLINA BONDS WILL HAVE TO BE GIVEN ATTRACTIVE YIELDS TO SELL WELL TRADERS SAY THE LARGEST PORTION OF THE ISSUE 3602 MILLION SERIES B TERM BONDS DUE IN 2013 ARE EXPECTED TO HAVE A YIELD OF 645 OR SLIGHTLY HIGHER PRICES OF NOTES AND BONDS ENDED 3/32 TO 14/32 POINT HIGHER WITH INTERMEDIATE SECURITIES ATTRACTING SOLID BUYING INTEREST IN AN OTHERWISE QUIET MARKET THE 10YEAR NOTE ROSE MORE THAN 3/8 OF A POINT TO 97 28/32 FOR A YIELD OF 666 DOWN FROM 672 THE FIVEYEAR NOTE ROSE 1/4 TO 100 12/32 FOR A YIELD OF 590 DOWN FROM 596 TRADERS SAID YESTERDAY'S ACTIVITY WAS A FOLLOWTHROUGH FROM FRIDAY WHEN THE MARKET REACTED TO THE SLIGHTLY WEAKER THAN EXPECTED DECEMBER EMPLOYMENT REPORT THE NUMBER WAS WEAK ENOUGH ON FRIDAY THAT IT CREATED A LITTLE BIT MORE INTEREST IN THE SHORT END OF THE MARKET SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO IN PRINCETON NJ THE 30YEAR BOND CONTINUED TO BE OUTPERFORMED BY THE REST OF THE MARKET RESTRAINED BY NERVOUSNESS ABOUT THE OUTLOOK FOR FISCAL POLICY PROSPECTS FOR A SHORTTERM SPENDING PROGRAM AND THE LONGERTERM OUTLOOK FOR THE DEFICIT ARE KEEPING DEALERS ON EDGE AND MANY SAY THE MARKET IS INCREASINGLY SKEPTICAL ABOUT PRESIDENTELECT CLINTON'S ABILITY TO REDUCE THE DEFICIT WHILE PROVIDING A SHORTTERM BOOST TO THE ECONOMY MEANWHILE THE TREASURY SOLD 2128 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 307 FOR A COUPON EQUIVALENT YIELD OF 314 BOTH DOWN FROM LAST WEEK'S AUCTION WHEN THEY WERE 315 AND 322 RESPECTIVELY THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 319 FOR A COUPON EQUIVALENT YIELD OF 329 DOWN FROM 328 AND 338 LAST WEEK HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JAN 14 THE 13WEEK BILLS MATURE APRIL 15 1993 AND THE 26WEEK BILLS MATURE JULY 15 1993 MORTGAGE SECURITIES POSTED SLIGHT PRICE GAINS ALTHOUGH THEY LAGGED BEHIND THE RISE IN COMPARABLE GOVERNMENT SECURITIES THAT CONTRASTED WITH LAST WEEK'S PATTERN WHEN MORTGAGE ISSUES OUTPERFORMED TREASURYS YESTERDAY WITH TRADING FAIRLY QUIET PRICES STAYED IN A NARROW RANGE THREE REAL ESTATE INVESTMENT CONDUIT DEALS AND AN INCREASE IN AN EXISTING DEAL WERE ANNOUNCED FOR A TOTAL OF ABOUT 2 BILLION OF ISSUANCE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED TWO DEALS BACKED BY 15YEAR FANNIE MAES WITH 6 1/2 AND 7 1/2 COUPONS FEDERAL HOME LOAN MORTGAGE CORP BROUGHT THE OTHER DEAL USING ITS 15YEAR 7 1/2 MORTGAGE SECURITIES FOR COLLATERAL BECAUSE ALL THREE WERE BACKED BY 15YEAR COLLATERAL SOME DEALERS BOUGHT THAT TYPE OF ISSUE BUT ACTIVITY WAS CONSIDERED TOO LIGHT TO SUGGEST A NEARTERM MARKET DIRECTION THE HEAD OF A REMIC TRADING DESK AT A PRIMARY DEALERSHIP HERE CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9301110185 930111 LAW VALUE RENTACAR'S EXOWNERS ACCUSED OF BILKING CUSTOMERS FORT LAUDERDALE FLA AP THE FORMER OWNERS OF VALUE RENTACAR INC WERE CHARGED WITH BILKING AT LEAST 47000 CUSTOMERS THROUGH PHONY REPAIR BILLS AND GASOLINE CHARGES THE THREE MEN TOOK HUNDREDS OF THOUSANDS OF DOLLARS FROM CUSTOMERS AND ALSO ILLEGALLY BORROWED 8 MILLION FROM CALIFORNIA FEDERAL SAVINGS BANK FOR THEIR OWN PURPOSES FEDERAL PROSECUTORS ALLEGE SIDNEY H COHEN 61 YEARS OLD AND HIS SONS STEVEN M COHEN 31 AND JEFFREY A COHEN 34 WERE INDICTED ON CHARGES OF RACKETEERING AND MAIL WIRE AND BANK FRAUD THE COHENS AND VALUE'S FORMER DIRECTOR OF SECURITY PAUL CORBIN 42 ARE ALSO CHARGED WITH TWO COUNTS OF WIRETAPPING FOR ALLEGEDLY BUGGING NEGOTIATORS FOR MITSUBISHI MOTOR SALES OF AMERICA INC WHICH EVENTUALLY BOUGHT THE COMPANY MITSUBISHI MOTOR SALES IS A UNIT OF MITSUBISHI MOTORS CORP NONE OF THE DEFENDANTS COULD BE REACHED TO COMMENT THE FEDERAL GRANDJURY INDICTMENT SAYS VALUE'S COMPUTER SYSTEM WAS RIGGED IN 1988 TO ADD FIVE GALLONS TO THE FUELTANK CAPACITY OF EVERY VEHICLE IN THE COMPANY'S FLEET ALLOWING VALUE TO OVERCHARGE CUSTOMERS WHO TURNED IN THE CAR WITH LESS THAN A FULL TANK ACCORDING TO FEDERAL PROSECUTORS ABOUT 47000 CUSTOMERS WERE OVERCHARGED AND MITSUBISHI WHICH LAWENFORCEMENT OFFICIALS EMPHASIZED WASN'T INVOLVED IN THE FRAUD WAS LOOKING FOR WAYS TO REIMBURSE THEM THE COHENS ALLEGEDLY ALSO OVERCHARGED CUSTOMERS AND THEIR INSURANCE CARRIERS HUNDREDS OF THOUSANDS OF DOLLARS FOR REPAIR WORK ON VEHICLES DAMAGED IN ACCIDENTS BETWEEN 1984 AND 1991 THEY ALLEGEDLY ARRANGED FOR TWO REPAIR BILLS FROM COOPERATING REPAIR SHOPS ONE WITH THE ACTUAL AMOUNT PAID BY VALUE AND THE OTHER AN INFLATED BILL PRESENTED TO THE CUSTOMER OR THE INSURER ACCORDING TO THE INDICTMENT IF CONVICTED THE COHENS COULD FACE PRISON SENTENCES OF AS MUCH AS 290 YEARS EACH AND FINES OF MORE THAN 1 MILLION MR CORBIN COULD FACE A MAXIMUM 10 YEARS IN PRISON AND FINE OF 500000 9301110184 930111 IMPORTED VEHICLES IN JAPAN CONTINUE THEIR SALES DECLINE SPECIAL TO THE WALL STREET JOURNAL TOKYO SALES OF IMPORTED CARS TRUCKS AND BUSES IN JAPAN WERE DOWN 37 IN DECEMBER TO 18366 UNITS FROM 19070 UNITS IN THE YEAREARLIER MONTH THE JAPAN AUTOMOBILE IMPORTERS' ASSOCIATION REPORTED THE DROP INDICATED THAT THE SLUMP IN JAPAN'S AUTOMOBILE SALES IS CONTINUING AS PERSONAL CONSUMPTION IS SLOWING IMPORTEDVEHICLE SALES FELL 76 IN NOVEMBER AFTER DECLINING 34 IN OCTOBER IMPORTEDVEHICLE SALES FOR ALL OF 1992 WERE DOWN 77 FROM 1991 TO 184615 UNITS FOR THE SECOND ANNUAL DECLINE IN A ROW THE LATEST TALLY WAS WELL BELOW THE ASSOCIATION'S INITIAL FORECAST WHICH CALLED FOR ANNUAL SALES OF 220000 UNITS AN ASSOCIATION SPOKESMAN ASCRIBED THE WORSETHANEXPECTED RESULTS TO THE DELAY IN THE ECONOMY'S RECOVERY ALTHOUGH INTEREST RATES FOR CREDIT TO BUY CARS REMAIN LOW IN LINE WITH EASING OF RATES IN GENERAL UNCERTAINTY ABOUT FUTURE ECONOMIC CONDITIONS CONTINUED TO DAMP CONSUMERS' PROPENSITY TO BUY LUXURY GOODS INCLUDING THE HIGHERPRICE MODELS OF FOREIGN CARS THE TWO YEARS OF FALLING SALES WAS THE LONGEST STRETCH OF DECLINE SINCE THE FOURYEAR SPAN FROM 1980 THROUGH 1983 WHEN THE IMPORTEDVEHICLE MARKET IN JAPAN WAS NASCENT WITH ANNUAL SALES OF 35000 UNITS THE SPOKESMAN SAID THE ASSOCIATION FORECASTS THAT SALES OF FOREIGNMADE VEHICLES IN 1993 WILL REBOUND SLIGHTLY TO 190000 UNITS DUE TO INCREASED DEMAND IN THE SECOND HALF BY TYPE OF VEHICLE OVERALL PASSENGERCAR SALES IN DECEMBER DECLINED 42 TO 17999 UNITS FROM 18784 UNITS A YEAR EARLIER WITHIN THAT CATEGORY SALES OF MIDSIZE CARS WERE UP 32 TO 11231 UNITS FROM 10878 UNITS DUE TO A SHIFT IN DEMAND FROM CHEAPER SMALLSIZE CARS AS THE GAP BETWEEN PRICES OF DIFFERENT SCALES OF JAPANESE CARS HAVE BEEN NARROWING SALES OF SMALLSIZE PASSENGER CARS WERE DOWN 14 TO 6768 UNITS FROM 7906 UNITS A YEAR EARLIER ON THE OTHER HAND TRUCK SALES CLIMBED 30 TO 366 UNITS FROM 281 UNITS REFLECTING BRISK DEMAND FOR RECREATIONAL VEHICLES 9301110183 930111 ECONOMY IRS PROPOSES RULES TO MAKE IT EASIER FOR COMPANIES TO FOLLOW PENSION LAW BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE PROPOSED REGULATIONS TO MAKE IT EASIER FOR COMPANIES TO DESIGN CERTAIN PENSION PLANS THAT COMPLY WITH FEDERAL LAWS INTENDED TO MAKE SURE LOWERPAID EMPLOYEES ARE TREATED AS WELL AS HIGHPAID EXECUTIVES IN GENERAL THE RULES WOULD GIVE EMPLOYERS GREATER FLEXIBILITY IN DEMONSTRATING THAT THEY ARE COMPLYING WITH THE LAW WHICH MANDATES THAT TAXQUALIFIED RETIREMENT PLANS BE STRUCTURED SO THAT RANKANDFILE WORKERS RECEIVE SUFFICIENT CONTRIBUTIONS AND BENEFITS BUSINESSES UPSET WITH AN EARLIER IRS PROPOSAL HAVE BEEN PUSHING FOR SUCH GUIDELINES COMPANIES OFTEN TRY TO HAVE THEIR RETIREMENT PLANS ACHIEVE TAXQUALIFIED STATUSDESIGNATED 401A BECAUSE IT PROVIDES THEM WITH CERTAIN ADVANTAGES THESE INCLUDE THE ABILITY TO TAKE IMMEDIATE DEDUCTIONS FOR CONTRIBUTIONS TO THE PLAN'S TRUST FUND EMPLOYEES PARTICIPATING IN THESE PLANS ALSO ENJOY A DEFERRAL THEY AREN'T TAXED AT THE TIME THE COMPANY MAKES A CONTRIBUTION TO THE TRUST FUND BUT RATHER WHEN THEY RECEIVE A PAYOUT INDUSTRY AND GOVERNMENT OFFICIALS HAVE BEEN WRANGLING OVER THE NONDISCRIMINATION RULES FOR SOME TIME THE IRS FIRST PROPOSED REGULATIONS IN THIS AREA IN MAY 1990 AND AFTER PUBLIC HEARINGS THE AGENCY PUBLISHED WHAT WERE INTENDED TO BE FINAL RULES IN SEPTEMBER 1991 BUT EMPLOYERS BEGAN COMPLAINING THAT THE REGULATIONS WERE UNWORKABLE AND TREASURY OFFICIALS WENT BACK TO THE DRAWING BOARD TREASURY OFFICIALS SAID THEY BELIEVE THEY FINALLY HAVE PUT TOGETHER SOMETHING THAT MEETS EMPLOYERS' CONCERNS WHILE PROVIDING ADEQUATE PROTECTION FOR EMPLOYEES EMPLOYERS' REPRESENTATIVES ALSO SEEMED HEARTENED BY THE LATEST PROPOSAL ALTHOUGH THEY WERE STILL SCOURING THE HALFINCHTHICK DOCUMENT FOR DETAILS THERE HAS BEEN AN EFFORT TO WORK WITH US AND OTHER MEMBERS OF THE BUSINESS COMMUNITY SAID MARK UGORETZ PRESIDENT OF THE ERISA INDUSTRY COMMITTEE A TRADE GROUP REPRESENTING MORE THAN 100 OF THE NATION'S LARGEST COMPANIES ON PENSION ISSUES ERISA STANDS FOR THE EMPLOYEE RETIREMENT INCOME SECURITY ACT NONETHELESS MR UGORETZ SAID HE WAS FRUSTRATED THAT THE PROCESS HAS BEEN SO LENGTHY AND COSTLY HE ESTIMATED THAT HIS ORGANIZATION HAS SPENT ROUGHLY 50000 IN LEGAL FEES AND ITS MEMBER COMPANIES MILLIONS OF DOLLARS MORE IN TRYING TO STRAIGHTEN OUT THE RULES IT'S BEEN A LONG ROAD HE SAID THE NEW PROPOSED RULES WHICH ARE TO TAKE EFFECT NEXT JAN 1 WOULD MAKE SIGNIFICANT CHANGES IN THREE BROAD AREAS FIRST THEY WOULD RELAX SOME OF THE STRICT GUIDELINES FOR EMPLOYERS THAT CHOOSE TO USE A GENERAL TEST IN DETERMINING IF THEIR PLANS ARE NONDISCRIMINATORY WITH THE GENERAL TEST AN EMPLOYER HAS TO LOOK AT EVERYONE COVERED UNDER THE PLAN FIGURE OUT WHAT LEVEL OF BENEFITS THEY ARE DERIVING AND MAKE SURE ADEQUATE BENEFITS ARE REACHING DIFFERENT LEVELS OF THE WORK FORCE UNDER THE LATEST PROPOSAL IF THE PLAN FAILS THE GENERAL TEST BY A SMALL MARGIN IT WOULDN'T AUTOMATICALLY BE DEEMED DISCRIMINATORY EMPLOYERS WOULD BE PERMITTED TO COME IN AND ARGUE THEIR CASE EXPLAINED EVELYN PETSCHEK THE TREASURY'S BENEFITS TAX COUNSEL THE SECOND IMPORTANT AREA DEALS WITH EMPLOYERS THAT CHOOSE TO USE A SOCALLED SAFEHARBOR ARRANGEMENT IN ASSESSING WHETHER THEIR PLANS ARE DISCRIMINATORY WITH THIS APPROACH EMPLOYERS USE A FORMULA TO ENSURE THAT WORKERS AT ALL LEVELS ARE RECEIVING ADEQUATE BENEFITS THE NEW PROPOSED REGULATIONS WOULD GIVE COMPANIES MORE LEEWAY IN CRAFTING THESE FORMULAS ESPECIALLY IN CALCULATING HOW YEARS OF SERVICE AND DIFFERENT FORMS OF COMPENSATION SHOULD COME INTO PLAY FINALLY THE LATEST REGULATIONS ALSO WOULD REDUCE THE NUMBER OF PROCEDURES THAT EMPLOYERS MUST FOLLOW IN DOING SO TREASURY OFFICIALS ATTEMPTED TO GREATLY SIMPLIFY THE RULES THEY ARE NOW ABOUT 190 PAGES DOWN FROM 320 PAGES AS DRAFTED IN 1991 A PUBLIC HEARING ON THE PROPOSED REGULATIONS IS SET FOR APRIL THE TREASURY HAS BEEN LABORING TO COMPLETE WORK ON THIS AND SEVERAL OTHER MAJOR REGULATIONS BEFORE BILL CLINTON TAKES CONTROL OF THE GOVERNMENT ON JAN 20 9301110182 930111 SPORTS VISA TO SPONSOR ATLANTA AS WELL AS THE OLYMPICS BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL JUST WHEN YOU THOUGHT CORPORATE AMERICA HAD EXHAUSTED THE POSSIBILITIES FOR LINKING ITS NAME WITH EVERY SPORTING EVENT THE FEDERAL EXPRESS ORANGE BOWL CELEBRITY OR WORTHY CAUSE THAT ISN'T NAILED DOWN ALONG COME VISA USA AND THE GOOD CITY OF ATLANTA THE FORMER YOU SEE IS ABOUT TO HAND OVER SEVERAL MILLION DOLLARS TO SPONSOR THE LATTER IN WHAT IS BEING CALLED A FIRST IN CITY MARKETING ATLANTA OFFICIALS TODAY ARE EXPECTED TO UNVEIL A PROGRAM IN WHICH VISA WOULD BECOME THE OFFICIAL CREDIT CARD OF THE CITY THE PARTNERSHIP SAYS JOEL BABBIT ATLANTA'S CHIEF OF MARKETING AND COMMUNICATIONS MARKS THE BEGINNING OF A SERIES OF AGREEMENTS BETWEEN THE CITY AND AUTO MAKERS FILM COMPANIES FOOD CONCERNS AND OTHERS IT'S GOING TO BE A TREND IN CITY GOVERNMENT MR BABBIT PREDICTS WE DON'T HAVE THE INCOME TO DO EVERYTHING WE NEED TO DO AND COMPANIES ARE LOOKING FOR COMMUNITY INVOLVEMENT IN ATLANTA'S CASE COMPANIES SUCH AS VISA ARE ALSO LOOKING TO PROTECT THEIR FLANKS THE CITY JUST HAPPENS TO BE THE HOST OF THE 1996 SUMMER OLYMPICS AND VISA JUST HAPPENS TO BE ONE OF THE WORLDWIDE SPONSORS OF THE GAMES ACCORDINGLY ATLANTA'S NEWFOUND FORTUNE IS MORE THAN SERENDIPITY IT IS ONE OF THE FIRST SKIRMISHES OVER AMBUSH MARKETING AMBUSH MARKETING IN WHICH AN ADVERTISER THAT ISN'T AN OFFICIAL SPONSOR OF AN EVENT TRIES TO PROMOTE ITSELF AS ONE HAS BECOME THE BANE OF OLYMPIC BACKERS WHICH PAY MILLIONS FOR ONE PRIVILEGE EXCLUSIVITY LAST YEAR THE INTERNATIONAL OLYMPIC COMMITTEE COMPLAINED BITTERLY THAT VISA AN OFFICIAL SPONSOR OF THE GAMES TO THE TUNE OF SOME 20 MILLION WAS BEING AMBUSHED BY AMERICAN EXPRESS CO AMERICAN EXPRESS HAS LONG DENIED THAT IT IS AMBUSHING ANYONE ITS COMMERCIALS THE COMPANY INSISTS ARE SIMPLY A DEFENSE AGAINST RIVAL ADS INDEED DURING THE RECENT SUMMER OLYMPICS AMERICAN EXPRESS DID SOME COMPLAINING OF ITS OWN CHARGING THAT VISA SUGGESTED THAT ALL OF BARCELONA REFUSED THE AMERICAN EXPRESS CARD THIS BICKERING HAS LEFT THE DOOR OPEN FOR ATLANTA TO EXTEND A HAND AND OPEN PALM TO COMPANIES SUCH AS VISA BY SETTING UP A PARTNERSHIP WITH ATLANTA ITSELF INDEPENDENT OF ANY PACT WITH OLYMPIC OFFICIALS VISA CAN ELIMINATE THE OPPORTUNITY FOR A RIVAL TO MARKET ITSELF AS THE OFFICIAL CREDIT CARD OF ATLANTA DURING THE 1996 GAMES IT SHOWS THE GREAT LENGTHS VISA WILL GO TO PROTECT ITS INVESTMENT SAYS DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A SANTA MONICA CALIF CREDITCARD INDUSTRY NEWSLETTER WHAT'S MORE IT'S A VERY SHREWD MOVE BY ATLANTA HE SAYS THEY'RE LEAVING NO STONE UNTURNED VISA DECLINED TO COMMENT ON THE PACT FOR THE RECORD OFFICIALS IN ATLANTA DENY THAT THEY ARE TRYING TO TAKE ADVANTAGE OF SPONSORS' CONCERNS OVER AMBUSH MARKETING AT THE SAME TIME HOWEVER THE CITY'S MR BABBIT ACKNOWLEDGES THAT PART OF THE MOTIVATION OF SUCH PARTNERSHIPS MAY BE DEFENSIVE INDEED MR BABBIT SAYS ATLANTA IS FIRST APPROACHING COMPANIES ABOUT POSSIBLE SPONSORSHIPS THAT ALREADY HAVE A RELATIONSHIP WITH THE OLYMPIC MOVEMENT BUT HE WOULDN'T RULE OUT THE POSSIBILITY OF THE CITY REACHING AN AGREEMENT WITH A SPONSOR THAT'S A RIVAL OF AN EXISTING OLYMPIC SPONSOR WE WOULD TRY NEVER TO BE FACED WITH THAT SITUATION HE SAYS MEANWHILE ATLANTA IS PUTTING THE FINISHING TOUCHES ON THE VISA AGREEMENT THE PARTNERSHIP WILL RUN THROUGH THE END OF 1997 AND WILL MEAN SEVERAL MILLION DOLLARS FOR THE CITY'S COFFERS ACCORDING TO MR BABBIT MOST OF THE FUNDS HE SAYS WILL BE USED TO PROMOTE ATLANTA IN INTERNATIONAL MARKETS SUCH CONNECTIONS MR BABBIT SAYS ARE CERTAIN TO BECOME MORE COMMON A FEW YEARS AGO A COMPANY WOULD HAVE SPENT A FEW MILLION DOLLARS ON TV OR NEWSPAPER ADS IN A CITY NOW THEY'LL SPEND IT ON SAY A PARK SOMEDAY HE SAYS I BELIEVE YOU'LL SEE A COCACOLA BOULEVARD IN ATLANTA 9301110181 930111 TELEDYNE REPORTS NET FELL 63 IN 4TH PERIOD ON 13 SALES DECLINE LOS ANGELES TELEDYNE INC SAID FOURTHQUARTER EARNINGS FELL 63 ON A DECLINE IN SALES OF ALMOST 13 NET INCOME SLID TO 104 MILLION OR 19 CENTS A SHARE FROM 281 MILLION OR 50 CENTS A SHARE AFTER A RESTRUCTURING SALES FOR THE QUARTER TOTALED 7157 MILLION DOWN FROM 8182 MILLION A YEAR EARLIER THE MANUFACTURING COMPANY WAS DOGGED BY LEGAL AND RECESSIONARY TROUBLES DURING 1992'S FINAL QUARTER IN NOVEMBER TELEDYNE'S DEFENSE ELECTRONIC UNIT CUT ITS WORK FORCE BY 15 EQUIVALENT TO 232 JOBS BECAUSE OF A DECLINE IN THE DEFENSE CONTRACTS THAT CONSTITUTE MOST OF THE UNIT'S BUSINESS ALSO THAT MONTH THE COMPANY PLEADED GUILTY TO CRIMINAL CHARGES OF FALSIFYING TESTS ON ELECTRONIC RELAY SWITCHES SOLD TO THE GOVERNMENT AND PAID A 175 MILLION FINE SEVERAL CIVIL FRAUD SUITS ARE PENDING AGAINST TELEDYNE'S DEFENSE CONTRACTING UNITS FOR THE FULL YEAR TELEDYNE POSTED PROFIT OF 332 MILLION OR 60 CENTS A SHARE COMPARED WITH A LOSS OF 254 MILLION OR 46 CENTS A SHARE SALES WERE 289 BILLION LAST YEAR OFF SLIGHTLY FROM 321 BILLION NET INCOME FOR THE YEAR WAS REDUCED BY THE PAYMENT OF THE FINE IN THE RELAY SWITCH CASE TELEDYNE SAID IT BELIEVES THAT RESOLUTION OF A RELATED CIVIL MATTER WILL LIKELY RESULT IN THE RECOGNITION OF AN ADDITIONAL LOSS CONTINGENCY WHICH IS NOT CURRENTLY ESTIMABLE THE COMPANY SAID OPERATING PROFIT IN ITS AVIATION AND ELECTRONICS SEGMENT WAS ADVERSELY AFFECTED BY A 25 MILLION PRETAX PROVISION FOR LOSSES FROM THE PERFORMANCE OF DEVELOPMENT AND INITIAL PRODUCTION FIXED PRICE CONTRACTS LAST YEAR'S EARNINGS INCLUDED A GAIN OF 148 MILLION RELATED TO THE RESTRUCTURING THE COMPANY SAID A YEAR EARLIER TELEDYNE TOOK A 689 MILLION RESTRUCTURING CHARGE TELEDYNE'S EARNINGS REPORTS WERE MADE OVER THE WEEKEND IN NEW YORK STOCK EXCHANGE TRADING ON FRIDAY TELEDYNE STOCK CLOSED UNCHANGED AT 2025 9301110180 930111 CREDIT RATINGS AH BELO CORP DALLAS STANDARD & POOR'S CORP SAID IT UPGRADED THE CREDIT RATING ON AH BELO'S 300 MILLION OF SENIOR DEBT TO TRIPLEB FROM TRIPLEBMINUS CITING BELO'S IMPROVED BUSINESS POSITION RECOVERING PROFITABILITY AND EXPECTATIONS FOR CONTINUED MODERATE GROWTH IN EARNINGS AND CASH FLOW MESA INC NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS NATURAL GAS PRODUCER'S RATINGS TO CAA FROM B3 ABOUT 600 MILLION OF SUBORDINATED NOTES IS AFFECTED THE RATINGS AGENCY CITED CONTINUING PRESSURE ON MESA'S OPERATING INCOME BECAUSE OF THE COMPANY'S SUBSTANTIAL INTEREST BURDEN CASH RESERVES AND THE EQUITY BASE WILL CONTINUE TO DECLINE RAPIDLY SAID MOODY'S CURRENTLY MESA IS TRYING TO RESTRUCTURE ITS DEBT IN ORDER TO LIMIT CASH INTEREST PAYMENTS AND AVOID VIOLATION OF CERTAIN BANK COVENANTS EVEN IF THE DEBT RESTRUCTURING IS SUCCESSFUL THE LONGTERM ECONOMIC VIABILITY OF MESA WILL REMAIN QUESTIONABLE BARRING AN UNEXPECTED STRONG REBOUND IN GAS PRICES MOODY'S SAID TRAVELERS CORP HARTFORD CONN MOODY'S INVESTORS SERVICE INC DECIDED NOT TO UPGRADE THE CREDIT RATINGS OF 14 BILLION OF THIS INSURER'S DEBT THE CREDIT RATINGS CONCERN CITED CONTINUED VOLATILITY IN THE VALUES OF TRAVELERS' REAL ESTATE HOLDINGS AS THE PRIMARY REASON FOR KEEPING THE COMPANY'S SENIOR DEBT RATING AT BAA1 SUBORDINATED DEBT AT BAA2 AND PREFERENCE STOCK AT BAA1 IN SEPTEMBER MOODY'S SAID IT WAS CONSIDERING A POSSIBLE UPGRADE OF TRAVELERS FOLLOWING AN EQUITY INVESTMENT BY PRIMERICA CORP THE FINANCIALSERVICES COMPANY PUMPED ABOUT 723 MILLION IN CAPITAL INTO TRAVELERS IN RETURN FOR A 27 STAKE MOODY'S SAID MOODY'S DID NOTE THAT THE PRIMERICA INVESTMENT OFFERS SUPPORT TO TRAVELERS' INVESTORS AND POLICYHOLDERS AND THAT A RESTRUCTURING AT TRAVELERS SHOULD CUT COSTS IN A STATEMENT TRAVELER SAID MOODY'S ACTION RECOGNIZES THE POSITIVE STEPS THE COMPANY HAS TAKEN TO BUILD CAPITAL AND TO CUT EXPENSES 9301110179 930111 CANADIAN JOBLESS RATE DROPS OTTAWA CANADA'S UNEMPLOYMENT RATE DECLINED TO 115 OF THE WORK FORCE IN DECEMBER FROM 118 IN NOVEMBER STATISTICS CANADA A GOVERNMENT AGENCY SAID THE DECLINE IN THE RATE RESULTED FROM A PICKUP IN ECONOMIC ACTIVITY THE GROSS DOMESTIC PRODUCT OR TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES HAS INCREASED MODESTLY FOR SIX CONSECUTIVE QUARTERS EMPLOYMENT ROSE BY 57000 OR 05 IN DECEMBER IT WAS THE LARGEST GAIN IN FIVE CONSECUTIVE MONTHS OF EMPLOYMENT INCREASES 9301110178 930111 UNITED AIR TRAFFIC GAINS CHICAGO UNITED AIRLINES SAID ITS DECEMBER TRAFFIC ROSE 92 TO 757 BILLION REVENUE PASSENGER MILES FROM 694 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 631 FROM 649 FOR ALL OF 1992 THE UAL CORP UNIT FLEW 925 BILLION REVENUE PASSENGER MILES UP 13 FROM 819 BILLION IN 1991 LOAD FACTOR WAS 674 COMPARED WITH 663 9301110177 930111 HANNA TO RESTATE EARNINGS CLEVELAND MA HANNA CO SAID IT WILL RESTATE ITS 1992 FIRSTQUARTER EARNINGS TO INCLUDE A CHARGE OF 115 MILLION OR ABOUT 58 CENTS A SHARE TO ADOPT NEW ACCOUNTING STANDARDS FOR RETIREE BENEFITS AND INCOME TAXES IN ADDITION TO THE NONCASH CHARGE THE SPECIALTY CHEMICALS CONCERN SAID THE CHANGES WILL LEAD TO ADDITIONAL EXPENSES OF ABOUT 13 CENTS A SHARE FOR 1992 IN THE FIRST QUARTER HANNA HAD NET INCOME OF 35 MILLION OR 18 CENTS A SHARE ON REVENUE OF 2969 MILLION 9301110176 930111 JACOR HOLDERS APPROVE PLAN CINCINNATI JACOR COMMUNICATIONS INC SAID ITS COMMON AND PREFERRED SHAREHOLDERS APPROVED ITS PREVIOUSLY ANNOUNCED RESTRUCTURING PLAN WHICH EFFECTIVELY GIVES ZELL/CHILMARK FUND LP CONTROL OF THE COMPANY THE BROADCAST CONCERN SAID IT EXPECTS TO COMPLETE THE TRANSACTION WITHIN A WEEK 9301110175 930111 WHO'S NEWS WORLD COLOR PRESS INC WORLD COLOR PRESS INC NEW YORK ANN MARIE BUSHELL 37 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE SALES AT THIS CONSUMER MAGAZINE AND COMMERCIAL PRINTER A UNIT OF PRINTING HOLDINGS LP OF EFFINGHAM ILL MS BUSHELL WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT OF MARKETING IN THE MAGAZINE GROUP AT RR DONNELLEY & SONS CO A COMMERCIAL PRINTER IN CHICAGO 9301110174 930111 WHO'S NEWS CABLE & WIRELESS PLC CABLE & WIRELESS PLC LONDON GIAN DILAWARI 45 YEARS OLD VICE PRESIDENT OF ENGINEERING WAS NAMED A SENIOR VICE PRESIDENT AT CABLE & WIRELESS COMMUNICATIONS INC A UNIT OF THIS INTERNATIONAL TELECOMMUNICATIONS CONCERN BASED IN VIENNA VA 9301110173 930111 WHO'S NEWS COASTAL HEALTHCARE GROUP INC COASTAL HEALTHCARE GROUP INC DURHAM NC DAVID H FATER 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE SUCCEEDS BARRY E SNIPES 39 WHO WAS APPOINTED CHIEF OPERATING OFFICER OF THIS CLINICAL CONTRACT MANAGEMENT COMPANY IN OCTOBER 9301110172 930111 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BELLSOUTH TELECOMMUNICATIONS INC A WHOLLY OWNED UNIT OF BELLSOUTH CORP A SHELF OFFERING OF 600 MILLION OF DEBT SECURITIES DEL WEBB CORP REGISTRATION FOR A SHELF OFFERING OF 100 MILLION OF SENIOR SUBORDINATED DEBT SECURITIES EASTMAN KODAK CO A SHELF OFFERING OF 25 BILLION OF DEBT SECURITIES INFORMATION SYSTEMS ACQUISITION CORP AN INITIAL OFFERING OF TWO MILLION UNITS VIA GKN SECURITIES CORP US CAN CORP AN INITIAL OFFERING OF 55 MILLION COMMON SHARES VIA SALOMON BROTHERS INC AND FIRST BOSTON CORP VICAL INC REGISTRATION FOR A PROPOSED INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC AND VECTOR SECURITIES INTERNATIONAL INC 9301110171 930111 WHO'S NEWS HARSCO CORP HARSCO CORP HARRISBURG PA RICHARD C HAWKINS FORMER VICE PRESIDENT FOR HUMAN RESOURCES AT ROBERTSONCECO CORP WAS APPOINTED VICE PRESIDENT HUMAN RESOURCES AT THIS MAKER OF DEFENSE AND INDUSTRIAL PRODUCTS MR HAWKINS 52 YEARS OLD SUCCEEDS ROGER E SNODGRASS 65 WHO RETIRED LAST YEAR 9301110170 930111 WHO'S NEWS IMCLONE SYSTEM INC IMCLONE SYSTEMS INC NEW YORK KENNETH D KRANTZ 46 YEARS OLD WAS NAMED VICE PRESIDENT OF CLINICAL AND REGULATORY AFFAIRS AT THIS BIOPHARMACEUTICAL COMPANY MR KRANTZ WHOSE POSITION IS NEWLY CREATED HAD BEEN EXECUTIVE DIRECTOR OF CLINICAL RESEARCH IN THE BIOTECHNOLOGY DIVISION OF RW JOHNSON PHARMACEUTICAL RESEARCH INSTITUTE A UNIT OF JOHNSON & JOHNSON 9301110169 930111 WHO'S NEWS CARTIER SA CARTIER SA PARIS STEVEN P KAISER 39 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF DAVID G STEVEN INC THE US WATCH DISTRIBUTOR FOR BAUME & MERCIER SA THE GENEVA SWITZERLAND WATCHMANUFACTURING UNIT OF THIS INTERNATIONAL LUXURY GOODS CONCERN MR KAISER HAD BEEN VICE PRESIDENT OF SALES AND MARKETING HE SUCCEEDS HIS FATHER BENJAMIN KAISER 67 WHO WILL CONTINUE AS CHAIRMAN 9301110168 930111 BAD MEDICINE CYANIDE POISONING CASE IN THE NORTHWEST LEADS FBI ON A TWISTED TRAIL TAINTED SUDAFED KILLED TWO BUT AGENTS ZEROED IN ON SPOUSE OF A SURVIVOR ONE INDISCREET CONVERSATION BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL TUMWATER WASH NAGGED BY HER HUSBAND TO TAKE SUDAFED 12HOUR CAPSULES TO REDUCE NASAL CONGESTION AND NIGHTLY SNORING 28YEAROLD JENNIFER MELING POPPED A PILL INTO HER MOUTH ONE EVENING TWO YEARS AGO WITHIN SECONDS SHE COLLAPSED IN A COMA SHE WAS RUSHED TO A HOSPITAL WHERE DOCTORS PUMPED HER STOMACH PUT HER ON A VENTILATOR AND GAVE HER HUGE DOSES OF MEDICATION AFTER 10 HOURS OF INTENSIVE TREATMENT SHE REVIVED AT FIRST PHYSICIANS WERE MYSTIFIED WE COULDN'T FIGURE OUT WHAT HAD HAPPENED TO HER SAYS T HIAN POUW WHO TREATED HER BUT AFTER AN 18MONTH INVESTIGATION BY THE FEDERAL BUREAU OF INVESTIGATION JENNIFER'S HUSBAND JOSEPH WAS INDICTED IN US DISTRICT COURT IN SEATTLE LAST AUGUST THE INDICTMENT SAID JOE MELING 29 HAD FILLED A CAPSULE WITH CYANIDE AND PUT IT IN THE SUDAFED PACKAGE HE ALLEGEDLY AIMED TO KILL HIS WIFE FOR HER 700000 LIFE INSURANCE POLICY TO DIVERT SUSPICION FROM HIMSELF AND MAKE IT LOOK LIKE PRODUCT TAMPERING THE INDICTMENT CONTINUED HE PUT CYANIDE IN SEVERAL OTHER SUDAFED PACKAGES AND PUT THEM IN STORES NEAR OLYMPIA AND TACOMA BEFORE AUTHORITIES REALIZED THE DANGER AND SPREAD THE ALARM ON TV BROADCASTS TWO PEOPLE DIED TERRIFIED RESIDENTS OF WESTERN WASHINGTON STATE BEGAN THROWING OUT ALL THEIR MEDICINES AND SUDAFED'S MAKER BURROUGHS WELLCOME CO HAD TO CARRY OUT A 17 MILLION NATIONWIDE RECALL AND REFORMULATE THE PRODUCT TO MAKE IT MORE TAMPERRESISTANT NOW MR MELING IS CHARGED WITH PRODUCT TAMPERING TRYING TO DEFRAUD AN INSURANCE COMPANY AND PERJURY FOR DENYING IN A CIVILSUIT DEPOSITION THAT HE EVER POSSESSED CYANIDE HE HAS PLEADED NOT GUILTY AND IS IN JAIL AWAITING A MARCH TRIAL HIS ATTORNEY DECLINES TO COMMENT SINCE POISONED TYLENOL CAPSULES KILLED SEVEN PEOPLE IN THE CHICAGO AREA IN 1982 IN A CASE NEVER SOLVED PRODUCT TAMPERING HAS BECOME A CRIME MORE COMMON THAN MANY REALIZE THE FOOD AND DRUG ADMINISTRATION ISN'T EAGER TO TALK ABOUT IT FOR FEAR OF INSPIRING COPYCAT CRIMES BUT IN RESPONSE TO INQUIRIES A SPOKESMAN SAYS THERE HAVE BEEN NEARLY 650 CASES OF CONFIRMED PRODUCT TAMPERING IN THE PAST DECADE NOT COUNTING MANY TAMPERING THREATS AIMED AT EXTORTING MONEY FROM FOOD AND DRUG COMPANIES THIRTYSIX PEOPLE HAVE BEEN CONVICTED UNDER STATE AND FEDERAL LAWS FOR REAL OR THREATENED TAMPERING DURING THIS TIME PRODUCTS INCLUDED MILK SOFT DRINKS PEANUT BUTTER AND PAINKILLERS BUT AS THE SUDAFED TALE SHOWS THE CASES CAN BE EXTRAORDINARILY TRICKY TO SOLVE FOR THE TRAIL OF EVIDENCE OFTEN IS ONLY CIRCUMSTANTIAL IN THIS CASE PROSECUTORS FOLLOWING THE TRAIL MAY YET BE THWARTED BY AN UNEXPECTED TWIST IT HAS TAKEN THE STORY HAS BEEN PIECED TOGETHER FROM DOCUMENTS FILED IN THE FEDERAL CRIMINAL CASE DEPOSITIONS IN A CIVIL SUIT FILED IN US DISTRICT COURT IN TACOMA AGAINST BURROUGHS WELLCOME ALLEGING NEGLIGENCE AND INTERVIEWS WITH THE FBI THE FDA TUMWATER POLICE DR POUW AND OTHERS JENNIFER MELING COULDN'T BE REACHED A MINISTER'S DAUGHTER REARED IN A SMALL TOWN IN WASHINGTON STATE SHE MARRIED JOE MELING IN 1986 JOE MOVED FROM JOB TO JOB BY 1990 HE WAS A SALESMAN FOR PRUDENTIAL INSURANCE CO OF AMERICA AND THE TWO WERE LIVING IN AN APARTMENT IN TUMWATER A SUBURB OF OLYMPIA THE MARRIAGE WASN'T GOING WELL ACCORDING TO A PROSECUTION MEMO FILED IN COURT THERE WERE QUARRELS OVER MONEY JOE HAD EXPENSIVE HOBBIES INCLUDING PHOTO AND STEREO EQUIPMENT JENNIFER HELD TWO JOBS AS A TEACHER AND STORE CLERK IN AN EFFORT TO MAKE ENDS MEET THREE DAYS BEFORE CHRISTMAS 1990 A BITTER ARGUMENT BROKE OUT AND JENNIFER CALLED THE POLICE ON 911 MY HUSBAND IS TRYING TO HURT ME HE TRIED TO PUSH ME SLAM MY FACE INTO THE CUPBOARDS JENNIFER SOBBED ACCORDING TO A TRANSCRIPT OF THE CALL HE TRIED TO PULL THE PHONE OUT OF THE WALL BUT WHEN THE POLICE ARRIVED JENNIFER SAID SHE HADN'T BEEN ASSAULTED NO ARREST WAS MADE AFTER THE INCIDENT JOE'S MOOD CHANGED TO COLDNESS TOWARD HIS WIFE THE PROSECUTION MEMO ASSERTS AND ONE DAY JENNIFER RETURNED HOME AND FOUND JOE IN THE KITCHEN CLEANING HIS GRAM SCALE THIS PUZZLED HER BECAUSE HE RARELY USED IT JOE SAID HE NEEDED THE SCALE TO MAKE PASTA A FEW DAYS LATER JOE BEGAN INSISTING THAT JENNIFER TAKE SOME SUDAFED HE HAD BOUGHT DESPITE WHAT HE WAS TELLING HER SHE FELT SHE DIDN'T HAVE NASAL CONGESTION AND THAT SHE DIDN'T SNORE BUT ABOUT 9 PM SHE TOOK A PILL ANYWAY WHEN SHE COLLAPSED JOE CALLED AN AMBULANCE JENNIFER WHEN SHE ARRIVED AT AN OLYMPIA HOSPITAL WAS BASICALLY DYING SAYS DR POUW HER BLOOD SUGAR AND ACID WERE SO HIGH AND HER BLOOD PRESSURE SO LOW DOCTORS THOUGHT SHE HAD GONE INTO DIABETIC SHOCK THEY GAVE HER INSULIN BICARBONATES TO COUNTERACT THE ACID AND ANOTHER DRUG TO BOOST BLOOD PRESSURE BUT BY MIDNIGHT JENNIFER WAS STILL IN A COMA JOE SUGGESTED CHECKING FOR CYANIDE POISONING AN IDEA CONSIDERED FARFETCHED DOCTORS KEPT POURING IN MEDICATIONS WE USED AMPUL AFTER AMPUL OF BICARBONATE WE ALMOST EXHAUSTED THE HOSPITAL'S SUPPLY TO BALANCE THE TREMENDOUSLY HIGH LEVEL OF ACID IN HER BLOOD DR POUW SAYS THOUGH THE TREATMENT DIDN'T DIRECTLY COUNTERACT THE CYANIDE IT KEPT JENNIFER ALIVE FINALLY ABOUT 8 AM SHE REGAINED CONSCIOUSNESS THE NEXT DAY DR POUW STILL TRYING TO FIGURE OUT WHAT HAD HAPPENED NOTICED THAT ON ADMISSION JENNIFER HAD A HIGH LEVEL OF LACTIC ACID A BYPRODUCT OF CYANIDE POISONING HE REMEMBERED JOE MELING HAD SUGGESTED CYANIDE AND THEN JENNIFER TOLD THE DOCTOR SHE HAD TAKEN WHAT SHE THOUGHT WAS A SUDAFED CAPSULE JUST BEFORE COLLAPSING DR POUW ORDERED A BLOOD TEST IT SHOWED JENNIFER HAD GOTTEN TRIPLE THE USUAL LETHAL DOSE OF CYANIDE DR POUW TOLD TUMWATER POLICE ON FEB 5 1991 HE ALSO NOTIFIED A LOCAL SALES REPRESENTATIVE FOR BURROUGHS WELLCOME WHICH IS BASED IN RESEARCH TRIANGLE PARK NC AND IS A UNIT OF BRITAIN'S WELLCOME PLC LATER THE FBI AND THE FDA WERE INFORMED AT THIS POINT A DISAGREEMENT DEVELOPED DR POUW SAYS HE URGED THAT SUDAFED BE TAKEN OFF STORE SHELVES JOE MELING KEPT SAYING WHY DON'T THEY PULL THE SUDAFED FROM THE SHELVES' DR POUW RECALLS HE ADDS WOULDN'T THAT MAKE YOU SUSPICIOUS THAT THERE WERE MORE POISONED CAPSULES OUT THERE THERE WAS A REAL POTENTIAL FOR PEOPLE TO BE HURT BUT WITH NO SOLID EVIDENCE OF BROADER PRODUCT TAMPERING THE AUTHORITIES DECIDED IT WAS PROBABLY JUST A ONESHOT POISONING THE FDA AND BURROUGHS WELLCOME NEITHER RECALLED THE PRODUCT NOR MADE ANY PUBLIC ANNOUNCEMENT AT THIS POINT THERE WERE FOUR SUDAFED PACKAGES WITH POISON CAPSULES ON THE SHELVES OF WASHINGTON STORES AND ANOTHER ALREADY PURCHASED ON FEB 9 IN TACOMA KATHLEEN DANEKER 40 WAS LOOKING FORWARD TO A SECOND HONEYMOON AFTER REMARRYING HER HUSBAND THE EVENING BEFORE HANDED A SUDAFED BY HER MOTHER KATHLEEN SWALLOWED THE PILL AND COLLAPSED SHE DIED TWO DAYS LATER LEAVING HER HUSBAND AND THREE TEENAGERS ON FEB 17 IN AN OLYMPIA SUBURB STANLEY MCWHORTER 44 WAS HELPING HIS WIFE AND 18YEAROLD SON BRANDON PUT AWAY GROCERIES BRANDON IN A DEPOSITION FOR THE CIVIL SUIT SAID HIS FATHER SWALLOWED A SUDAFED AND STARTED SWEATING PROFUSELY AND TURNING FAIRLY WHITE HIS KNEES BUCKLED AND HE WAS STARTING TO GO DOWN HE WAS GASPING FOR AIR MR MCWHORTER DIED SHORTLY AFTERWARD BLOOD TESTS BY STATE AUTHORITIES EVENTUALLY SHOWED BOTH MS DANEKER AND MR MCWHORTER HAD INGESTED CYANIDE ALERTED TO THE SECOND POISONING OF MRS DANEKER FDA OFFICIALS NEAR SEATTLE BEGAN EXAMINING THE DANEKERS' SUDAFED PACKAGE ON MARCH 2 WHILE FILLING OUT A WORKSHEET AN FDA ANALYST NOTICED THE SERIAL NUMBER ON THE OUTSIDE PACKAGE DIFFERED FROM THE NUMBER ON THE BLISTER PACKAGE INSIDE THAT'S OFTEN A SIGN OF TAMPERING THAT EVENING FDA OFFICIALS TELEPHONED TV STATIONS AND THEIR WARNING HIT THE 11 O'CLOCK NEWS BURROUGHS WELLCOME RECALLED ALL SUDAFED 12HOUR CAPSULES TWO FAMILIES TURNED IN PACKAGES CONTAINING POISONED CAPSULES ONE FAMILY HAVING STARTED TAKING THE PILLS BUT AT THE OTHER END OF THE PACKAGE FROM THE POISONED CAPSULE THE LAST POISONED PILL WAS SPOTTED BY FDA ANALYSTS AMONG 216000 SUDAFED CAPSULES RECOVERED FROM STORE SHELVES THE FBI STARTED HUNTING THE KILLER ONE OF THE FIRST STEPS INVOLVED THE HALF DOZEN CHEMICAL DISTRIBUTORS IN WASHINGTON LICENSED TO SELL CYANIDE WHICH IS USED IN INDUSTRIAL PROCESSES STATE BOARD OF PHARMACY AGENTS COLLECTED THE DISTRIBUTORS' REGISTERS WHICH ALL PURCHASERS OF POISONS MUST SIGN ONE BY ONE THE SCORES OF PURCHASERS WERE CHECKED BY FBI AGENTS MEANWHILE THREE FBI TEAMS HAD BEEN SET UP ONE FOR EACH OF THE VICTIMS' FAMILIES TO SEE WHETHER A KILLER MIGHT BE LURKING AMONG THE RELATIVES WE KEPT THE INVESTIGATION BROAD WE DIDN'T WANT TO PUT ANY BLINDERS ON SAYS WILLIAM GORE SPECIAL AGENT IN CHARGE OF THE FBI'S SEATTLE OFFICE NOTHING SUSPICIOUS WAS FOUND IN THE DANEKER AND MCWHORTER FAMILIES BUT AS INVESTIGATORS DUG DEEPER THERE WAS MORE AND MORE TO RAISE CONCERN ABOUT JOE MELING JUST DAYS AFTER JENNIFER WAS POISONED HER PARENTS TOLD TUMWATER POLICE THEY SUSPECTED JOE AND A MEMBER OF HIS FAMILY SAID THAT WHILE IN SCHOOL JOE HAD ONCE PLOTTED HOW TO BEAT A KID HALF TO DEATH WITH A CLUB AND GET AWAY WITH IT AND THEN IN FACT DID SO BANK AND CREDIT RECORDS OBTAINED BY THE FBI SHOWED THAT AS EARLY AS 1989 THE MELINGS WERE OVERWHELMED BY DEBTS AS THE PROSECUTION MEMO IN FEDERAL COURT PUTS IT AN FBI CHECK WITH TUMWATER POLICE TURNED UP JENNIFER'S 911 CALL FOR HELP AND A CHECK OF THE MELINGS' LIFEINSURANCE POLICIES SHOWED THAT JUST 10 DAYS BEFORE SHE WAS POISONED JENNIFER'S POLICY HAD BEEN INCREASED TO 700000 FROM 100000 COUNTING AN EXTRA BENEFIT FOR ACCIDENTAL DEATH AGENTS BEGAN INTERVIEWING JOE MELING'S COWORKERS A FELLOW INSURANCE AGENT IN GRAND JURY TESTIMONY CITED IN THE PROSECUTION MEMO SAID JOE HAD ASKED SOME STRANGE QUESTIONS MONTHS BEFORE HE IN PARTICULAR ASKED ME WOULD THE ADB ACCIDENTAL DEATH BENEFIT PAY IF SOMEBODY FELL OR IF THEY WERE POISONED THE PRUDENTIAL AGENT SAID THE AGENT ALSO RECALLED JOE'S MENTIONING AN OVERTHECOUNTER DRUG AND ASKING IF POISON EVER GOT INTO THAT WOULD ACCIDENTAL DEATH PAY OFF IN MARCH AGENTS SPENT HOURS SEARCHING THE MELING APARTMENT HOPING TO FIND THE REST OF THE POUND OF CYANIDE BOUGHT BY RICHARD JOHNSON THEY DIDN'T BUT THEY FOUND SOMETHING ELSE IN 1989 JOE MELING HAD CALLED TUMWATER POLICE SAYING BURGLARS HAD STOLEN SEVERAL CAMERAS STEREO EQUIPMENT AND VIDEO RECORDERS AND HE FILED A CLAIM FOR OVER 11000 WITH A SEATTLE INSURER HE COLLECTED 8892 IN EQUIPMENT AND CASH BUT AS FBI AGENTS SEARCHED THE APARTMENT THEY FOUND THE SUPPOSEDLY STOLEN CAMERAS JOE MELING THE INDICTMENT ALLEGES HAD STAGED THE BURGLARY TO DEFRAUD THE INSURER FBI AGENTS ALSO CHECKED THE MELINGS' TELEPHONE RECORDS THEY FOUND A SERIES OF CALLS TO STRIPTEASE BARS AROUND TACOMA SOME TO AN UNLISTED PHONE IN A BACK ROOM INTERVIEWING STRIPPERS AGENTS LEARNED THAT JOE HAD BEEN PURSUING SEVERAL BEFORE JENNIFER WAS POISONED SOME SAID THEY DATED JOE OTHERS WERE FRIGHTENED BY HIM ONE TOPLESS DANCER TOLD A GRAND JURY JOE HAD FOLLOWED HER TO HER APARTMENT I GOT SCARED I WASN'T GOING TO ANSWER THE DOOR HE LEFT AND CAME BACK HE HAD COME BACK ABOUT 15 TIMES WITHIN A TWOHOUR PERIOD KNOCKING ON MY DOOR MEANWHILE JENNIFER AFTER SHE RECOVERED RETURNED TO HER PARENTS' HOME IN SOUTHERN WASHINGTON AND SUED FOR DIVORCE JOE MOVED BACK TO HIS PARENTS' HOME ALSO IN SOUTHERN WASHINGTON FBI AGENTS NOW HAD INDICATIONS JOE MIGHT HAVE CHEATED AN INSURANCE COMPANY AND MIGHT HAVE BEEN LESS THAN A MODEL HUSBAND BUT THEY HAD NO HARD EVIDENCE HE HAD POISONED ANYONE THE FBI STEPPED UP ITS INVESTIGATION WATCHING JOE ROUND THE CLOCK IN HOPES HE WOULD LEAD THEM TO LEFTOVER CYANIDE HE NEVER DID THE FBI ALSO TAPPED HIS PHONE AND PLACED MICROPHONES WHERE HE WAS LIVING JOE WAS SUSPICIOUS ABOUT TELEPHONE TAPS ONCE WHEN HIS MOTHER SAID SOMETHING HE CONSIDERED INDISCREET HE SNAPPED MOM PULL YOUR HEAD OUT OF YOUR A HAS PHONE TAPPING OCCURRED TO YOU BUT HE APPARENTLY NEVER SUSPECTED MICROPHONES AND AT LAST THE MICROPHONES PROVIDED A BREAK IN ONE CONVERSATION THE PROSECUTION MEMO STATES JOE TOLD HIS FAMILY THAT ABOUT A MONTH BEFORE JENNIFER'S POISONING HE HAD GONE TO A STORE NEAR KENT WHERE THEY DO SOMETHING WITH CHEMISTRY THEN THE PROSECUTION MEMO CONTINUES JOE PROCEEDED TO SO APTLY DESCRIBE THE PREMISES IN MINUTIAE THAT THE FBI'S SUBSEQUENT INVESTIGATION PINPOINTED EMERALD CITY CHEMICAL INC THAT WAS WHERE RICHARD JOHNSON HAD BOUGHT A POUND OF CYANIDE FBI HANDWRITING EXPERTS COMPARED JOE'S WRITING WITH THE BUYER'S SIGNATURE THE MAN WHO SIGNED FOR THE CYANIDE THE EXPERTS SAID WAS MR MELING AGENTS ALSO FOUND EVIDENCE OF A LINK BETWEEN THE MELING HOUSEHOLD AND THE CAPSULES CONTAINING CYANIDE THAT HAD BEEN RETURNED BY THE TWO TACOMAAREA FAMILIES JENNIFER THE PROSECUTION MEMO STATES HAD LONG TAKEN IRON SUPPLEMENTS IN CAPSULES THAT WERE HALF RED AND HALF CLEAR CLOSELY RESEMBLING SUDAFED 12HOUR CAPSULES AFTER JENNIFER'S POISONING HER IRON CAPSULES COULDN'T BE FOUND BUT SHE LED AGENTS TO A HEALTHFOOD STORE AND POINTED OUT THE KIND OF IRON PILLS SHE USED THOSE CAPSULES THE FBI'S CRIME LAB SAYS ARE IDENTICAL TO THE CYANIDEFILLED CAPSULES RETURNED BY THE TWO FAMILIES JENNIFER DID MEET WITH THE FBI BUT SHE ALSO BEGAN FEELING SYMPATHY FOR JOE THAT ALARMED THE FBI IF THE TWO RECONCILED RATHER THAN DIVORCED THAT COULD DISRUPT THE PROSECUTION CASE UNDER THE LEGAL DOCTRINE OF MARITAL PRIVILEGE A WIFE MAY NOT TESTIFY AGAINST HER HUSBAND SO THAT SHE MIGHT VISIT A FRIEND AND THINK THINGS THROUGH THE FBI PAID JENNIFER'S AIR FARE TO HAWAII THE TACTIC DIDN'T WORK JENNIFER RETURNED DROPPED HER DIVORCE ACTION AND MOVED BACK IN WITH JOE ONE LATE SUNDAY MORNING IN AUGUST AS FBI AGENTS SURROUNDED THE COUPLE'S NEW APARTMENT TO ARREST JOE THEY HAD TO USE A RUSE PHONE CALL TO GET THE PAIR OUT OF BED 9301110167 930111 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED ONE NEW LISTING AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED ONE INITIAL OFFERING THE NEW YORK STOCK EXCHANGE BEGAN TRADING CHESAPEAKE UTILITIES CORP DOVER DEL A UTILITY CONCERN IN NATURAL GAS TRANSMISSION AND DISTRIBUTION UNDER CPK THE COMPANY PREVIOUSLY TRADED OVER THE COUNTER THE NATIONAL MARKET SYSTEM BEGAN TRADING IN KANKAKEE BANCORP INC KANKAKEE ILL A BANK HOLDING COMPANY UNDER KNKB THE AMERICAN STOCK EXCHANGE BEGINS TRADING OPTIONS TODAY ON AMERICAN GREETINGS CORP THE AMEX ALSO BEGINS TRADING LEAPS OR LONG TERM EQUITY ANTICIPATION SECURITIES WHICH HAVE LONGERTERM EXPIRATIONS THAN REGULAR STOCK OPTIONS ON BLOCKBUSTER ENTERTAINMENT CORP TODAY THE PACIFIC STOCK EXCHANGE BEGINS TRADING OPTIONS ON THE WILSHIRE SMALL CAP INDEX TODAY THE INDEX IS A JOINT EFFORT AMONG THE PSE THE CHICAGO BOARD OF TRADE AND WILSHIRE ASSOCIATES INC THE COMMODITY EXCHANGE INC BEGAN TRADING FUTURES OPTIONS ON THE EUROTOP 100 INDEX 100 BLUE CHIP EQUITIES TRADED IN NINE MAJOR EUROPEAN COUNTRIES 9301110166 930111 WHO'S NEWS INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO PURCHASE NY MILAN J TURK 54 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF SPECIALTY PRODUCTS AT THIS WORLDWIDE PRODUCER OF PAPER AND FOREST PRODUCTS MR TURK WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT AND GROUP EXECUTIVE OF SPECIALTY PRODUCTS 9301110165 930111 WHO'S NEWS PIER 1 IMPORTS INC PIER 1 IMPORTS INC FORT WORTH TEXAS KENNETH N PONTIKES 53YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMDISCO INC WAS NAMED TO THE BOARD OF THIS HOME FURNISHINGS AND LAWN AND GARDEN GOODS RETAILER EFFECTIVE APRIL 1 HE SUCCEEDS THOMAS N WARNER 62 A CALIFORNIA RANCHER AND INVESTOR WHO RESIGNED AFTER 10 YEARS ON THE BOARD 9301110164 930111 WHO'S NEWS MBIA INC MBIA INC ARMONK NY THIS MUNICIPALBOND INSURER NAMED JAMES E MALLING EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR CORPORATE MARKETING AND NEW SERVICES SUCH AS CASH MANAGEMENT FOR MUNICIPALITIES MR MALLING 51 YEARS OLD HAD BEEN A SENIOR VICE PRESIDENT UNDER HIS DIRECTION THE COMPANY HAS EXPANDED ITS NEWPRODUCT ACTIVITIES 9301110163 930111 WHO'S NEWS NABORS INDUSTRIES INC NABORS INDUSTRIES INC HOUSTON HANS W SCHMIDT WAS NAMED TO THE BOARD OF THIS OIL AND GAS DRILLING CONTRACTOR FILLING A VACANCY MR SCHMIDT 63 YEARS OLD RECENTLY RETIRED AS PRESIDENT OF DEUTAG DRILLING OF BAD BENTHEIM GERMANY 9301110162 930111 WHO'S NEWS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON JOHN N GOODPASTURE AND TP TIM MCCONN WERE PROMOTED TO SENIOR VICE PRESIDENTS THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY ALSO NAMED RODNEY W BRIDGES THE CURRENT CONTROLLER A VICE PRESIDENT 9301110161 930111 WHO'S NEWS HAYES WHEELS INTERNATIONAL INC HAYES WHEELS INTERNATIONAL INC ROMULUS MICH JOHN S RODEWIG PRESIDENT AND CHIEF OPERATING OFFICER OF EATON CORP AND KENNETH L WAY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LEAR SEATING CORP WERE NAMED TO THE BOARD OF THIS MAKER OF ALUMINUM AND STEEL WHEELS INCREASING THE BOARD'S SIZE TO FIVE 9301110160 930111 WHO'S NEWS LANDMARK BANCORP LANDMARK BANCORP LA HABRA CALIF FRED R WEIDEMAN 42 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THIS HOLDING COMPANY AND ITS SUBSIDIARY LANDMARK BANK MR WEIDEMAN 42 YEARS OLD PREVIOUSLY WAS FIRST VICE PRESIDENT OF ONE CENTRAL BANK OF GLENDALE 9301110159 930111 DANSKIN INC SETS BUYBACK NEW YORK DANSKIN INC DIRECTORS AUTHORIZED A STOCK REPURCHASE PROGRAM FOR AS MANY AS 200000 SHARES OR ABOUT 34 OF THE COMPANY'S COMMON STOCK OUTSTANDING THE MAKER OF WOMEN'S EXERCISE CLOTHING DANCE WEAR AND HOSIERY HAS ABOUT SIX MILLION COMMON SHARES OUTSTANDING 9301110158 930111 LIPOSOME CO SELLS SHARES PRINCETON NJ LIPOSOME CO SAID IT RAISED 57 MILLION THROUGH AN OFFERING OF 24 MILLION DEPOSITARY SHARES AT 25 EACH THE COMPANY WILL USE PROCEEDS TO DEVELOPS LIPOSOME AND LIPIDBASED PHARMACEUTICALS AND FOR OTHER RESEARCH AND DEVELOPMENT ACTIVITIES THE DEPOSITARY SHARES WILL TRADE UNDER THE SYMBOL LIPOZ ON THE NASDAQ SYSTEM EACH DEPOSITARY SHARE THROUGH UNDERLYING PREFERRED STOCK IS CONVERTIBLE INTO SHARES OF LIPOSOME COMMON STOCK AT A CONVERSION PRICE OF 1285 A COMMON SHARE 9301110157 930111 ESSEF EXPECTS TO POST LOSS CHARDON OHIO ESSEF CORP SAID IT EXPECTS TO REPORT A LOSS FOR THE FIRST QUARTER ENDED DEC 31 INCLUDING ONETIME EXPENSES OF 725000 BEFORE TAXES BECAUSE OF AN ARBITRATION AWARD AND SEVERANCE PAYMENTS IN THE YEAREARLIER QUARTER THE ENGINEERED PLASTICS CONCERN HAD NET INCOME OF 312000 OR SIX CENTS A SHARE ON SALES OF 188 MILLION 9301110156 930111 WHO'S NEWS MASTERCARD INTERNATIONAL INC MASTERCARD INTERNATIONAL INC NEW YORK DANIEL T MURRAY 44 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF MARKETING AT THIS ASSOCIATION OF CREDIT CARD ISSUERS REPORTING DIRECTLY TO PETER SP DIMSEY PRESIDENT OF MASTERCARD'S US REGION MR MURRAY SUCCEEDS KEITH KENDRICK WHO RECENTLY WAS NAMED SENIOR VICE PRESIDENT OF DEVELOPMENT AT AT&T UNIVERSAL CARD SERVICES CORP A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO MR MURRAY HAD BEEN MANAGING DIRECTOR OF MARKETING IN THE RETAIL CARD SERVICES GROUP AT CHEMICAL BANKING CORP 9301110155 930111 BRAZIL'S FOREIGN DEBT FALLS BRASILIA FIGURES MADE AVAILABLE FRIDAY BY THE CENTRAL BANK SHOWED THAT BRAZIL'S FOREIGN DEBT IN JUNE 1992 STOOD AT 102 BILLION THE BANK'S PREVIOUS FIGURES RELEASED IN SEPTEMBER 1991 SHOWED THE DEBT AT 123 BILLION OF THE 102 BILLION THE AMOUNT OWED BY THE FEDERAL STATE AND MUNICIPAL GOVERNMENTS CAME TO 786 BILLION THE FEDERAL GOVERNMENT'S SHARE OF THE PUBLIC DEBT DROPPED 21 DUE TO AN INCREASE IN HARDCURRENCY RESERVES WHICH IN JUNE TOTALED 217 BILLION 9301110154 930111 TOKYO UTILITY'S DEMAND SURGES TOKYO TOKYO ELECTRIC POWER CO SAID ELECTRICITY USE THURSDAY REACHED THE HIGHEST LEVEL EVER EXPERIENCED IN WINTER AS PEOPLE SCRAMBLED TO WATCH TELEVISION REPORTS ON THE CROWN PRINCE'S ENGAGEMENT ASIDE FROM HIGH TELEVISION VIEWERSHIP THE UTILITY SAID CONSUMPTION WAS HIGH DUE TO INCREASED HEATING NEEDS REFLECTING COLD AND OVERCAST WEATHER THURSDAY MORNING THE HIGHEST POWER OUTPUT WAS RECORDED AT 11 AM THURSDAY WHEN 4375 MILLION KILOWATTS WERE USED THIS FIGURE COMPARES WITH THE RECORD FOR 1992 ACHIEVED ON MARCH 18 OF 4350 MILLION KILOWATTS AFTER NEWS BROKE LATE WEDNESDAY EVENING THAT PRINCE NARUHITO THE HEIR TO THE JAPANESE THRONE HAD FINALLY FOUND A BRIDE TELEVISION CHANNELS BEGAN REPORTING NONSTOP ON THE PRINCESSTOBE MASAKO OWADA 9301110153 930111 NATWEST'S NEW JERSEY MOVE NEW YORK NATIONAL WESTMINSTER BANCORP SAID IT MOVED ITS CORPORATE HEADQUARTERS FROM MANHATTAN TO JERSEY CITY NJ ABOUT 25 EMPLOYEES INCLUDING AS MANY AS 10 SENIOR EXECUTIVES MOVED TO THE NATWEST OFFICES AT 10 EXCHANGE PLACE WHERE THE BANK LEASES SEVEN FLOORS THE COMPANY SAID IT MOVED THE HEADQUARTERS AND THE EXECUTIVES TO NEW JERSEY IN PART TO MAKE ROOM FOR EMPLOYEES MOVING FROM OFFICES AT 100 WALL ST TO ITS WATER STREET BUILDING IN MANHATTAN NATIONAL WESTMINSTER BANCORP A UNIT OF NATIONAL WESTMINSTER BANK PLC LONDON HAS APPROXIMATELY 7000 EMPLOYEES IN THE US THE US UNIT HAS ABOUT 21 BILLION IN ASSETS AT 256 BRANCHES MAINLY IN NEW YORK AND NEW JERSEY 9301110152 930111 WHO'S NEWS CAROLINA FREIGHT CEO TO RETIRE THIS MONTH YOUNGER WILL RETURN SPECIAL TO THE WALL STREET JOURNAL CHERRYVILLE NC CAROLINA FREIGHT CORP SAID KENNETH E MAYHEW JR CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT WILL RETIRE AT THE END OF JANUARY KG YOUNGER 67 YEARS OLD WHO RETIRED AS PRESIDENT AND CEO OF THE TRUCKING CONCERN IN 1989 WILL RETURN TO CAROLINA FREIGHT AS INTERIM CHAIRMAN AND CHIEF EXECUTIVE PALMER E HUFFSTETLER FORMERLY EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL WILL BECOME PRESIDENT CAROLINA FREIGHT HAS BEEN HURT BY THE RECESSION AND BY TRUCKING DEREGULATION WHICH OPENED THE DOOR TO MORE COMPETITION IN THE THIRD QUARTER OF 1992 THE COMPANY EARNED JUST 76000 ON REVENUE OF 185 MILLION MR MAYHEW 58 WHO WORKED FOR CAROLINA FREIGHT FOR 27 YEARS ACKNOWLEDGED THAT EARNINGS IN THE PAST THREE YEARS HAVE NOT BEEN SATISFACTORY BUT HE SAID HE WASN'T FORCED TO TAKE EARLY RETIREMENT DOUG ROCKEL A MERRILL LYNCH TRUCKING INDUSTRY ANALYST ESTIMATES THAT CAROLINA FREIGHT WILL POST A LOSS OF 10 CENTS A SHARE FOR ALL OF 1992 COMPARED WITH 23 CENTS A SHARE IN 1991 HE NOTED THAT RESULTS FOR MOST LONGHAUL TRUCKING COMPANIES HAVE DROPPED IN RECENT YEARS DUE TO ENCROACHING COMPETITION FROM OTHER KINDS OF CARRIERS SUCH AS UNITED PARCEL SERVICE IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY CAROLINA FREIGHT SHARES WERE QUOTED AT 14875 UP 375 CENTS 9301110151 930111 CIBA UNITS SET ACQUISITION SUMMIT NJ CIBAGEIGY LTD'S US AND CANADIAN UNITS SAID THEY REACHED AN AGREEMENT TO BUY FISONS PLC'S NORTH AMERICAN CONSUMER HEALTHCARE PRODUCTS BUSINESS FOR 140 MILLION CIBAGEIGY A PHARMACEUTICAL AND CHEMICAL COMPANY BASED IN BASEL SWITZERLAND SAID THE ACQUISITION WOULD SIGNIFICANTLY STRENGTHEN THE TWO UNITS' EXISTING OVERTHECOUNTER MARKET PRESENCE THE BRANDS BEING PURCHASED INCLUDE THE ALLEREST LINE OF ALLERGYRELIEF PRODUCTS AND DESENEX ANTIFUNGAL MEDICATIONS FISONS IPSWICH ENGLAND IS A PHARMACEUTICAL COMPANY 9301110150 930111 WHO'S NEWS ESKIMO PIE CORP ESKIMO PIE CORP RICHMOND VA L BRADFORD ARMSTRONG 45 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF SALES AND MARKETING AT THIS ICE CREAM PRODUCTS MAKER ESKIMO PIE IS A UNIT OF REYNOLDS METALS CO MR ARMSTRONG PREVIOUSLY WAS CHAIRMAN OF THE COMPANY'S PUBLIC RELATIONS AGENCY EARLE PALMER BROWN/VIRGINIA 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 9301110149 930111 MARKETING & MEDIA KNOTS LANDING' SET TO GO OFF THE AIR AT END OF TV SEASON CBS PRIMETIME SOAP'S RUN WITH TOTAL OF 344 EPISODES WILL BE THE THIRDLONGEST BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ONE OF THE LAST REMNANTS OF THE 1980S IS ABOUT TO BE DISCARDED CBS ANNOUNCED THAT THE LAST OF THE PRIMETIME SOAP OPERAS KNOTS LANDING WILL GO OFF THE AIR AT THE END OF THE TELEVISION SEASON IN MAY THE PROGRAM ABOUT THE LIVES OF SEVERAL SOUTHERN CALIFORNIA COUPLES IS IN ITS 14TH SEASON ON THE AIR THE LONGEST OF ANY PRIMETIME ENTERTAINMENT SHOW NOW ON TELEVISION ONLY THE NEWSMAGAZINES 60 MINUTES AND 20/20 HAVE BEEN ON LONGER THE SECONDOLDEST ENTERTAINMENT SERIES NBC'S CHEERS ALSO WILL END AFTER AN 11YEAR RUN IN THE SPRING KNOTS LANDING ACTUALLY PREMIERED JUST BEFORE THE 1980S BEGAN IN DECEMBER 1979 AS A SPINOFF OF DALLAS WHICH PIONEERED THE GENRE THAT LATER SPAWNED THE LIKES OF DYNASTY AND FALCON CREST BUT WHILE DALLAS MINED THE SORDID SIDE OF THE GLITTERY LIVES OF A FANTASTICALLY RICH AND OFTEN MEANSPIRITED TEXAS OIL FAMILY KNOTS LANDING WAS DECIDEDLY MORE MIDDLECLASS WHICH MAY EXPLAIN WHY IT WAS ABLE TO HOLD ON TO AN AUDIENCE INTO THE MOREAUSTERE '90S THE SHOW STILL HAD ITS VILLAIN A MAIN STAPLE OF PRIMETIME SOAPS WHO IN THIS CASE WAS GREGORY SUMNER BUT KNOTS OFTEN WAS CONTENT TO FOCUS ON THE DOMESTIC LIVES OF GOODHEARTED COUPLES LIKE KAREN AND MACK KNOTS WAS ACTUALLY THE FIRST NIGHTTIME SOAP THAT CREATOR DAVID JACOBS PITCHED TO CBS BUT EXECUTIVES THERE WANTED A SHOW ABOUT OIL BARONS AND DALLAS AND ITS LOVETOHATE HERO JR EWING WERE BORN KNOTS EMERGED ONLY LATER WHEN IT WAS REVIVED AS A SPINOFF DALLAS DIED MAY 3 1991 KNOTS LANDING DREW A HEALTHY 172 OF AMERICA'S HOMES WITH TELEVISIONS OVER THE YEARS AGAINST SUCH COMPETITION AS 20/20 AND HILL STREET BLUES BUT IN RECENT YEARS THE SHOW HAD FALLEN TO THIRD PLACE IN ITS TIME PERIOD ON THURSDAY NIGHTS AT 10 PM THIS YEAR IT IS RANKED 37TH IN HOUSEHOLD RATINGS DRAWING 115 OF TV HOMES THE SHOW CAN CALL IT QUITS WITH PRIDE HOWEVER WHEN IT ENDS WITH A TWOHOUR MOVIE IN MAY KNOTS LANDING WILL HAVE PRODUCED 344 EPISODES MAKING IT THE THIRD LONGESTRUNNING DRAMATIC SERIES IN THE HISTORY OF TELEVISION FOLLOWING GUNSMOKE 406 EPISODES AND DALLAS 356 SHOWS 9301110148 930111 WHO'S NEWS XEROX CORP XEROX CORP STAMFORD CONN DAVID R PROCTOR 57 YEARS OLD WAS NAMED PRESIDENT OF XEROX COMPUTER SERVICES A LOS ANGELES DIVISION OF THIS BUSINESS MACHINES MAKER MR PROCTOR HAD BEEN A CONSULTANT FOR SEVERAL XEROX BUSINESS UNITS AS WELL AS PRESIDENT AND CHIEF OPERATING OFFICER OF ASHTONTATE CORP A MICRO COMPUTER PRODUCTS CONCERN IN TORRANCE CALIF MR PROCTOR SUCCEEDS JOEL B NAGELMANN 51 WHO RESIGNED LAST WEEK FOR PERSONAL REASONS 9301110147 930111 WHO'S NEWS GAMING DEVICES FUNDING INC GAMING DEVICES FUNDING INC CRANFORD NJ JACK DAVIS 67 YEARS OLD WAS NAMED VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH INTENDS TO BUILD AND OPERATE RIVERBOAT CASINOS MR DAVIS WAS PRESIDENT AND CHIEF EXECUTIVE OF RESORTS INTERNATIONAL INC AN ATLANTIC CITY NJ CASINO HOTEL CONCERN UNTIL 1989 AND SINCE THEN WAS A CONSULTANT EDWARD TRACY 40 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF GAMING DEVICES MR TRACY ALSO A CONSULTANT HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OF DONALD TRUMP'S THREE ATLANTIC CITY CASINOS UNTIL 1991 JOHN DELL THE COMPANY'S CHAIRMAN PREVIOUSLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE 9301110146 930111 HARDBALL BUYS STAKE IN PARENT OF HAWAIIAN AIR BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE FORMER BASEBALL CLUB OWNER GEORGE L ARGYROS AND FORMER BASEBALL CZAR PETER UEBERROTH ARE ABOUT TO PLAY A LITTLE BALL TOGETHER MR ARGYROS IS A WEALTHY REAL ESTATE TYCOON WITH HOLDINGS UP AND DOWN THE WEST COAST FRIDAY HE SAID HE ACQUIRED 123 OF HAL INC PARENT OF HAWAIIAN AIRLINES MR ARGYROS WHO ONCE OWNED THE SEATTLE MARINERS BASEBALL TEAM MADE THE INVESTMENT THROUGH A COMPANY CALLED HARDBALL INC THAT SEEMS APT BECAUSE HAL IS CLOSELY ASSOCIATED WITH MR UEBERROTH A FORMER COMMISSIONER OF MAJOR LEAGUE BASEBALL MR UEBERROTH LED AN INVESTMENT GROUP THAT HAS BEEN ATTEMPTING TO KEEP THE STRUGGLING AIRLINE ALOFT SINCE IT ACQUIRED HAL IN 1990 MR ARGYROS DIDN'T INDICATE IF HE INTENDS TO BUY MORE SHARES OR ATTEMPT TO INFLUENCE MANAGEMENT WHICH IS HEADED BY THE CHAIRMAN AND CHIEF EXECUTIVE JOHN UEBERROTH PETER'S BROTHER THE STOCK PURCHASES WERE RELATED TO A RECENT RECAPITALIZATION UNDERTAKEN BY HAL IN WHICH IT OFFERED SOME SHARES THROUGH A PRIVATE PLACEMENT A HAL SPOKESMAN SAID BEYOND THAT HE WOULDN'T COMMENT IN A SECURITIES AND EXCHANGE COMMISSION FILING MR ARGYROS SAID HARDBALL ACQUIRED 300000 SHARES ON DEC 29 FOR 48 MILLION AND 403226 SHARES ON NOV 10 FOR 15 MILLION HARDBALL HOLDS 703226 SHARES OF HAL COMMON SHARES FOR INVESTMENT PURPOSES THE FILING SAID IN TRADING ON THE AMERICAN STOCK EXCHANGE FRIDAY HAL CLOSED AT 6 DOWN 50 CENTS A SPOKESWOMAN FOR MR ARGYROS SAID HE WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT HAL BASED IN HONOLULU HAS BATTLED FOR SEVERAL YEARS TO OVERCOME A BLOATED COST STRUCTURE AND THE DAMAGING IMPACT OF PERIODIC FARE WARS MR UEBERROTH AND HIS PARTNERS HAVE PARED DEBT AND SLOWED THE CARRIER'S OPERATING LOSSES MANAGEMENT HAS HAILED THE RECENT RECAPITALIZATION AS A MILESTONE THROUGH IT HAL ELIMINATED MOST OF ITS LONGTERM DEBT SHARPLY REDUCED OTHER POTENTIAL OBLIGATIONS AND RAISED 105 MILLION THROUGH THE SALE OF STOCK IT PLANS A RIGHTS OFFERING THAT COULD RAISE MORE CASH BUT HAL IS STILL FAR FROM TAKING OFF ALTHOUGH IT POSTED ITS FIRST QUARTERLY PROFIT IN YEARS IN THE THIRD QUARTER WHEN IT HAD NET INCOME OF 26 MILLION OR 547 A SHARE ON REVENUE OF 1106 MILLION THAT PROFIT HOWEVER WAS INFLATED BY A ONETIME GAIN OF 417 MILLION FROM THE SALE OF CERTAIN ASSETS FOR THE NINE MONTHS HAL HAD A NET LOSS OF 107 MILLION OR 322 A SHARE ON REVENUE OF 3284 MILLION GEORGE L ARGYROS A REAL ESTATE DEVELOPER AND PRIVATE INVESTOR BOUGHT 403226 SHARES OF HAL INC ON NOV 10 INCREASING HIS HOLDINGS TO 703226 SHARES OR 123 OF THE COMPANY HE PREVIOUSLY OWNED 300000 SHARES BOUGHT IN DECEMBER 1989 AN ARTICLE MONDAY INCORRECTLY STATED THAT HE BOUGHT HIS ENTIRE STAKE IN LATE 1992 9301110145 930111 REPORT PROJECTS SLOW JOBGROWTH FOR NEW JERSEY BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT MAY BE THE END OF THE DECADE BEFORE NEW JERSEY SUFFERING FROM ITS WORST RECESSION SINCE THE DEPRESSION REGAINS 325000 JOBS LOST BY THE STATE SINCE 1989 ACCORDING TO TWO RUTGERS UNIVERSITY PROFESSORS THE GARDEN STATE'S SEVENYEAR BOOM IN THE 1980S ITS MOST PROLIFIC EMPLOYMENT DECADE TURNED INTO ITS GREATEST JOBSBUST SINCE THE 1930S AS INDUSTRIES THAT EXPANDED TOO RAPIDLY TOPPLED SAID JAMES W HUGHES AND JOSEPH J SENECA IN A UNIVERSITY REPORT ANATOMY OF A RECESSION NEW JERSEY'S LONG ROAD BACK GENERAL BUILDING CONTRACTORS FOR EXAMPLE SUFFERED A 50 DROP IN JOBS FROM 1989 TO 1992 AND JOBS IN HEAVY CONSTRUCTION FELL 28 AS THE STATE'S RESIDENTIAL HOUSING MARKET COLLAPSED LOSSES ALSO WERE HEAVY IN MANUFACTURING AND THE WHOLESALE AND RETAIL TRADE FROM 1989 TO 1992 THE STATE LOST MORE THAN HALF OF THE 624000 JOBS IT GAINED IN THE 1980S TO SOME DEGREE NEW JERSEY HAS FOLLOWED THE NATIONAL TRENDS BUT TO SOME DEGREE WE DUG A DEEPER HOLE DUE TO RAPID EXPANSION MR HUGHES SAID IN AN INTERVIEW HOWEVER HE NOTED THE SIZE OF THE POSTBABY BOOM GENERATION IS SMALLER THUS DEMAND FOR JOBS IN THE 1990S WON'T BE AS HEFTY AS IN THE '80S WE CAN LIVE BETTER WITH SLOWER JOB GROWTH IN THE 1990S THAN WE DID IN THE 1980S HE SAID DESPITE THE GLOOMY OUTLOOK MR HUGHES SAID BUSINESSES SEEKING TO EXPAND IN NEW JERSEY SHOULDN'T BE DISCOURAGED THERE'S STILL A TREMENDOUS CONCENTRATION OF PURCHASING POWER IN THE STATE HE SAID IN THE 1990 CENSUS HE NOTED NEW JERSEY'S MEDIAN FAMILY INCOME WAS NO 2 IN THE COUNTRY AND AT NEARLY 48000 IT WAS 35 HIGHER THAN THE MEDIAN FOR THE NATION THE STATE'S PERCAPITA INCOME 19000 ALSO RANKED SECOND IN THE COUNTRY AND WAS 30 HIGHER THAN THE NATION'S MEDIAN NEW JERSEY'S POLITICANS HAVE BEEN SCRAMBLING TO KEEP JOBS IN THE STATE COMMITTING THIS YEAR NEARLY 1 BILLION IN NEW INVESTMENTS FOR TRANSPORTATION AND OTHER INFRASTRUCTURE IMPROVEMENTS MR HUGHES CAUTIONED HOWEVER THAT TO IMPROVE THE LONGTERM EMPLOYMENT PICTURE THOSE PROJECTS MUST REDUCE CONGESTION MAKE TRANSPORTATION AND SHIPPING MORE EFFICIENT AND OTHERWISE LOWER THE COST OF DOING BUSINESS IN THE STATE THE STATE ALSO RECENTLY CREATED A JOBS CZAR TO COORDINATE DEVELOPMENT PROJECTS AND CUT THROUGH RED TAPE THAT CONSTRAINS BUSINESSES LABOR COMMISSIONER RAY BRAMUCCI ADDED THAT THE STATE HAS COMMITTED MORE THAN 50 MILLION TO TRAIN SKILLED WORKERS AND KEEP COMPANIES EMPLOYING HIGHERWAGE WORKERS IN NEW JERSEY WHERE THE AVERAGE WAGE IS NEARLY 14 AN HOUR 9301110144 930111 WHO'S NEWS MEDIA GENERAL INC MEDIA GENERAL INC RICHMOND VA THOMAS M HAHN 46 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT GARDEN STATE PAPER CO A UNIT OF THIS MEDIA COMPANY MR HAHN WHO HAD BEEN VICE PRESIDENT MANUFACTURING FOR THE UNIT SUCCEEDS JAMES L BURKE 54 WHO WILL BECOME PRESIDENT OF SOUTHEAST PAPER MANUFACTURING CO A DUBLIN GA JOINT VENTURE OF COX ENTERPRISES KNIGHTRIDDER INC AND MEDIA GENERAL BOTH APPOINTMENTS ARE EFFECTIVE FEB 1 9301110143 930111 CUC CHAIRMAN TIES ITS SUCCESS PARTLY TO UNUSUAL ARRAY OF CONSUMER SERVICES BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN CUC INTERNATIONAL INC'S CHAIRMAN WALTER A FORBES FIGURES ONE REASON THE COMPANY HAS DONE SO WELL IS BECAUSE IT IS HARD TO DEFINE ONE OF OUR STRENGTHS IS THAT THERE'S NO ONE LIKE US SAYS MR FORBES WHEN PRESSED HE DESCRIBES CUC AS A CONSUMER SERVICE COMPANY THAT PROVIDES MEMBERSHIP DISCOUNT BUYING PRIVILEGES FOR GOODS AND SERVICES SOLD BY THIRD PARTIES SUCH AS CREDIT CARD ISSUERS INCLUDING BANKS OIL COMPANIES AND RETAILERS AMONG ITS SERVICES ARE SHOPPING TRAVEL AUTO PURCHASING AND SERVICING AND ENHANCED CHECKING THE SERVICES ARE OFFERED OVER THE PHONE AND THROUGH THE MAIL UNDER THE THIRDPARTY NAMES IN OCTOBER 1991 CUC EXPANDED ITS FRANCHISE ALREADY DEVELOPED ON A NATIONAL LEVEL WITH THE PURCHASE OF ENTERTAINMENT PUBLISHING CORP IN A STOCK SWAP VALUED AT MORE THAN 230 MILLION THAT COMPANY ISSUES COUPON BOOKLETS ON A LOCAL LEVEL THROUGH NONPROFIT ORGANIZATIONS CONSUMERS CAN USE THE COUPONS FOR DISCOUNTS IN RESTAURANTS AND AREA SHOPS CUC WHICH HAS GROWN TO 27 MILLION MEMBERS FROM 100000 IN 1983 WHEN IT WENT PUBLIC ALLOWS MEMBERS TO SHOP FROM HOME AND BE COMFORTABLE THEY'RE GETTING A LOW PRICE ON A VALUE PRODUCT SAYS MR FORBES WHO IS ALSO CHIEF EXECUTIVE OFFICER THE STRATEGY SEEMS TO BE PAYING OFF MR FORBES SAID HE AGREES WITH THE UPPER END OF ANALYSTS' ESTIMATES THAT CUC WILL EARN 23 CENTS TO 26 CENTS A SHARE IN ITS FOURTH QUARTER WHICH ENDS JAN 31 THAT WOULD PUT NET AT A TOTAL OF ABOUT 159 MILLION TO 179 MILLION BASED ON THE COMPANY'S 69 MILLION SHARES OUTSTANDING IN THE YEARAGO QUARTER CUC HAD A NET LOSS OF 36 MILLION OR ABOUT SIX CENTS A SHARE ON REVENUE OF 170 MILLION THE LOSS INCLUDED A CHARGE OF 15 MILLION OR 17 CENTS A SHARE RELATED TO INTEGRATING THE ENTERTAINMENT PUBLISHING OPERATIONS THE YEARAGO PERSHARE NUMBERS WERE RESTATED TO REFLECT A 3FOR2 STOCK SPLIT IN JULY FOR THE YEAR MR FORBES IS VERY COMFORTABLE WITH ANALYSTS' ESTIMATES CUC WILL EARN 83 CENTS TO 86 CENTS A SHARE OR A TOTAL OF 573 MILLION TO 593 MILLION A YEAR AGO CUC EARNED 37 CENTS A SHARE OR A TOTAL OF 251 MILLION INCLUDING THE CHARGE ON REVENUE OF 6443 MILLION AND FOR THE NEXT FISCAL YEAR MR FORBES IS COMFORTABLE WITH THE HIGHER END OF A RANGE OF ESTIMATES THAT PUTS NET AT 1 TO 111 A SHARE OR A TOTAL OF 69 MILLION TO 766 MILLION THE EXECUTIVE DECLINED TO ESTIMATE REVENUE FOR ANY PERIOD MR FORBES CREDITS THE COMPANY'S ABILITY TO MAINTAIN A HIGH MEMBERSHIP RENEWAL RATE FOR ITS PERFORMANCE BECAUSE IT COSTS MORE TO BRING IN NEW MEMBERS THE MARGINS ARE HIGHER FOR RENEWAL MEMBERS THE EXECUTIVE SAID THAT COMPANYWIDE THE RENEWAL RATE IS MORE THAN 80 REVENUE IS DERIVED FROM MEMBERSHIP FEES WHICH COST ABOUT 49 A YEAR FOR EACH SERVICE THE REASON IT WORKS FINANCIALLY IS YOU HAVE TO PROVIDE REAL VALUE TO THE CONSUMER OR PEOPLE WON'T RENEW MR FORBES SAID WE BELIEVE ALL OUR SERVICES OFFER MORE INFORMATION AND BETTER PRICING THAN THE OTHER ALTERNATIVES SUCH AS RETAIL STORES MR FORBES ADDED THE COMPANY DOESN'T HAVE TO STOCK ANY INVENTORY AND IS THUS ABLE TO MAINTAIN A LOWER OVERHEAD THAN RETAILERS YET IT STILL IS ABLE TO OFFER 250000 ITEMS IN ITS SHOPPING SERVICE WHICH SELLS CONSUMER DURABLES AND ITEMS SUCH AS TELEVISION SETS THE IMPACT OF THE ENTERTAINMENT PUBLISHING ACQUISITION WON'T BE FULLY FELT UNTIL NEXT FISCAL YEAR MR FORBES SAID THE PURCHASE ALLOWED CUC ENTRY INTO LOCAL MARKETS AND INTO A BUSINESS WHERE PEOPLE TEND TO KEEP GOING BACK AND BUYING THE BOOKS YEAR AFTER YEAR MR FORBES SEES IT AS A MAJOR GROWTH AREA ANOTHER POTENTIAL GROWTH AREA FOR THE COMPANY IS EUROPE MR FORBES SAID WE THINK THE SAME PHENOMENON THE CREDIT CARD EXPLOSION THAT HAPPENED HERE IN THE 1980S IS JUST HAPPENING IN EUROPE HE ASSERTED MR FORBES SAID CUC HAS ESTABLISHED A PRESENCE THERE AND IS POISED FOR GROWTH AT SOME POINT THE COMPANY WHICH STARTED ON THE PREMISE THAT PEOPLE WOULD BUY THROUGH COMPUTERS WOULD LIKE TO DEVELOP COMPUTER SHOPPING IT IS DOING SOME TESTS IN THAT AREA BECAUSE OF ITS SIZE CUC IS ABLE TO OFFER CONSUMERS LOWER PRICES THAN MANY COMPETITORS MR FORBES ALSO NOTED THE CONVENIENCE FACTOR WHICH IS A PRIORITY AMONG MANY CONSUMERS WHO ARE PRESSED FOR TIME ALL THE MAJOR TRENDS ARE DRIVING PEOPLE INTO DOING MORE THINGS FROM HOME AND IF THEY HAVE THE TIME INTO DOING SOMETHING FUN RATHER THAN SHOPPING MR FORBES SAID 9301110142 930111 WHO'S NEWS DIED EDMUND F MARTIN 90 FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BETHLEHEM STEEL CORP IN BETHLEHEM PA 9301110141 930111 SUPREME COURT SET TO REVIEW DECISION ON RACIALBIAS SUIT WASHINGTON THE SUPREME COURT AGREED TO CLARIFY THE TYPE OF EVIDENCE A WORKER MUST PRESENT TO WIN A LAWSUIT ALLEGING RACIAL BIAS ON THE JOB THE JUSTICES SAID THEY WOULD REVIEW A LOWERCOURT DECISION THAT SET A RELATIVELY LIBERAL STANDARD FOR PROVING WORKPLACE BIAS IN THAT DECISION THE US COURT OF APPEALS IN ST LOUIS RULED THAT DEMOTED OR FIRED BLACK WORKERS AUTOMATICALLY SHOULD WIN A DISCRIMINATION SUIT IF THEY PROVE THAT THEY WERE QUALIFIED FOR THE JOB AND THAT THE EMPLOYER'S EXPLANATION FOR THE DEMOTION OR DISCHARGE WAS FALSE OTHER FEDERAL COURTS HAVE ISSUED CONFLICTING DECISIONS THAT SAID SUCH EVIDENCE MAY SUPPORT A RULING FOR THE PLAINTIFF BUT DOESN'T NECESSARILY COMPEL IT THE SUPREME COURT PRESUMABLY AGREED TO REVIEW THE ST LOUIS COURT'S RULING TO RESOLVE THE CONFLICT AMONG JURISDICTIONS THE CASE THE JUSTICES WILL CONSIDER INVOLVED A BLACK MISSOURI PRISON GUARD WHO WAS DEMOTED AND THEN FIRED ALLEGEDLY FOR HAVING VIOLATED A NUMBER OF PRISON RULES THE FIRED EMPLOYEE WHO WAS REPLACED BY A WHITE MAN SUED THE STATE FOR DAMAGES UNDER A FEDERAL CIVIL RIGHTS LAW KNOWN AS TITLE VII A FEDERAL TRIAL JUDGE RULED THAT THE GUARD MELVIN HICKS HAD SUCCESSFULLY SHOWN THAT HE WAS QUALIFIED FOR THE JOB AND THAT THE STATE HAD LIED ABOUT WHY IT FIRED HIM NEVERTHELESS THE JUDGE SAID MR HICKS HADN'T PROVED THAT HIS TREATMENT WAS MOTIVATED BY RACIAL BIAS INSTEAD THE JUDGE CONCLUDED THAT THE DEMOTION AND DISCHARGE WERE MOTIVATED BY PERSONAL ANIMOSITY 9301110140 930111 WHO'S NEWS HEIRS APPARENT AT IBM SHARE LOWKEY SMOOTHGLIDING STYLE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THE NEXT LEADER OF INTERNATIONAL BUSINESS MACHINES CORP IF CHAIRMAN JOHN AKERS HAS HIS WAY WILL PROBABLY BE A LOWCHARISMA EXCEEDINGLY TRADITIONAL SON OF OHIO IN HIS LATE 40S KNOWN FOR SMOOTHLY GLIDING FROM ASSIGNMENT TO ASSIGNMENT BUT STILL UNTESTED AS A VISIONARY LEADER THAT DESCRIBES BOTH OF THE MEN WHO SUDDENLY LOOK LIKE HEIRS APPARENT AT THE EMBATTLED COMPUTER GIANT ROBERT J LABANT IBM'S TOP US SALESMAN AND NED C LAUTENBACH WHO RUNS ITS ASIAN OPERATIONS MR AKERS LAST WEEK ELEVATED BOTH MEN TO IBM'S ALLPOWERFUL MANAGEMENT COMMITTEE A STRONG SIGNAL THAT HE CONSIDERS THEM THE TOP CANDIDATES FOR HIS JOB AT A COMPANY OFTEN VIEWED IN KREMLINOLOGICAL TERMS ITS OWN MANAGERS SPEAK OF THE PERESTROIKA UNDER WAY AT IBM MR AKERS EFFECTIVELY REJECTED CRIES FOR A REFORMER AND INSTEAD ANOINTED TWO HARDLINE PARTY LOYALISTS MR LABANT 47 JOINED IBM FRESH OUT OF KENT STATE UNIVERSITY AS A SALES TRAINEE IN CLEVELAND GENIAL EARNEST A GIFTED POLITICIAN HE SHOT UP THE RANKS AS AN EAGERTOPLEASE SUPERSALESMAN IF YOU SET HIM A TARGET HE WILL ALWAYS OVERACHIEVE SAYS DANIEL MANDRESH MERRILL LYNCH'S VETERAN COMPUTER ANALYST IF YOU TELL HIM YOU WANT 5000 PEOPLE OUT HE WILL TAKE 5500 OUT FOR YOU MR LAUTENBACH 48 JOINED IBM AS A JUNIOR MARKETER AFTER BOTH THE FACULTY AND STUDENT BODY OF THE UNIVERSITY OF CINCINNATI VOTED HIM THE MOST OUTSTANDING SENIOR AT IBM HE BECAME PART OF AN IMMENSE FAMILY DYNASTY HIS BROTHER TERRY RECENTLY RETIRED AS IBM'S NO 4 EXECUTIVE AND TWO OTHER BROTHERS DAN AND JIM ARE IBM SALESMEN IN CHICAGO TWO DAUGHTERS AND A SON OF THE NEXT LAUTENBACH GENERATION ARE ALSO AT IBM AN INTENSE CEREBRAL HARVARD MBA MR LAUTENBACH IS CONSIDERED A STRONGER INTELLECT THAN MR LABANT BUT A WEAKER PUBLIC FIGURE WHO DOESN'T ALWAYS GIVE SPEECHES SMOOTHLY OR SOCIALIZE EASILY BOTH MEN HAVE LOW PROFILES IN THE WORLD OUTSIDE IBM EACH CONTRIBUTED 1000 THE MAXIMUM ALLOWABLE TO THE 1992 BUSH CAMPAIGN BUT NEITHER IS ACTIVE IN POLITICS MR LAUTENBACH ISN'T ON ANY CORPORATE BOARDS AND MR LABANT SITS ON JUST ONE ARKWRIGHT MUTUAL INSURANCE CO OF WALTHAM MASS HE GIVES THE IMPRESSION OF BEING A PRETTY QUIET SORT OF A PERSON WITHOUT IN ANY WAY BEING WITHDRAWN OR SHY SAYS ARKWRIGHT PRESIDENT FREDERICK BUMPUS MR LAUTENBACH WAS REPORTEDLY IN TOKYO LAST WEEK AND COULDN'T BE REACHED MR LABANT REACHED OVER THE WEEKEND AT HIS CONNECTICUT HOME WOULDN'T TALK ABOUT HIS PRIVATE LIFE I DON'T WANT TO GET INTO PERSONAL ASPECTS WHAT I DO WHAT I ENJOY DOING MY FAMILY OR ANYTHING ELSE HE SAID BUT SPEAKING CAUTIOUSLY HE OFFERED SOME THOUGHTS ABOUT IBM'S PRESCRIPTION FOR A COMEBACK WE'RE GIVING MORE FREEDOM FOR THE BUSINESSES TO DO WHAT THEY HAVE TO DO HE SAID ALLUDING TO THE AFOREMENTIONED PERESTROIKA BUT THAT DOESN'T HAPPEN WITH A MAGIC WAND HE ALSO SAYS THE ARMONK NY COMPANY IS GOING THROUGH A MAJOR PROCESS REENGINEERING REVAMPING THE COMPANY'S 17 CHIEF LINKAGES ACTIONS AND PROCESSES SUCH AS DEVELOPMENT AND CUSTOMER SATISFACTION SYSTEMS HIS IBM COLLEAGUES DESCRIBE MR LABANT AS OBSESSIVELY FOCUSED ON NUMERICAL MEASUREMENTS JOSEPH GUGLIELMI A LONGTIME IBM MANAGER NOW RUNNING A JOINT VENTURE WITH APPLE COMPUTER INC CALLS MR LABANT A HARD MEASURER WHO JUDGES HIMSELF AND OTHERS ON A PASSFAIL BASIS WHAT BROUGHT IBM TO THIS CRISIS ITS STOCK AT 17YEAR LOWS ITS FIRST DISMISSALS IN HALF A CENTURY BILLIONS IN LOSSES AND ITS DIVIDEND IN JEOPARDY I'LL LET YOU ANSWER THAT MR LABANT SAYS CAREFULLY THERE'S BEEN A WHOLE CHANGE IN OUR INDUSTRY AND I THINK WE'VE BEEN RESPONDING TO THAT CHANGE DOES IBM NEED FRESH BLOOD IN ITS MANAGEMENT RANKS I AGREE WITH THAT HE SAYS HE POINTS TO SEVERAL OUTSIDERS IBM HAS HIRED IN CONSULTING AND SERVICES AS IT PUSHES INTO THOSE FIELDS WE THINK THAT TELESALES IS A NEW DISTRIBUTION OPPORTUNITY THAT WE HAVEN'T MAXIMIZED AND WE RECENTLY HIRED AN EXECUTIVE TO COME IN AND HELP US WITH TELESALES HE ADDS RIGHT NOW IBM'S CRITICS THINK IT NEEDS A FRESH FACE AT THE VERY TOP AND AMID IBM'S CONTINUING CRISIS IT REMAINS AN OPEN QUESTION WHETHER MR AKERS WILL HAVE A CHANCE TO TAP HIS HANDPICKED CANDIDATES I THINK BOTH NED AND BOB LABANT CAN BE AGENTS OF CHANGE THEY'VE SHOWN THAT IN PRIOR JOBS SAYS TERRY LAUTENBACH BUT THE BOARD'S GOING TO HAVE TO MAKE THAT DECISION LAURENCE HOOPER CONTRIBUTED TO THIS ARTICLE 9301110137 930111 LETTERS TO THE EDITOR BEWARE THE BEHEMOTH THAT NEVER FORGETS REGARDING YOUR DEC 4 EDITORIAL WAR BETWEEN THE STATES THERE IS NO DOUBT THAT NEW YORK STATE IS AN AGGRESSIVE BEHEMOTH WHEN IT COMES TO TAXING ITS CITIZENS WHAT IS TRULY FRIGHTENING HOWEVER IS THAT EVEN RUNNING AWAY FROM THE STATE IS NOT A CERTAIN CURE IN ADDITION TO DEMANDING SALES TAX FROM NEW YORK RESIDENTS WHO SHOP IN NEW JERSEY NEW YORK STATE IS AGGRESSIVELY PURSUING FORMER NEW YORKERS WHO HAVE ATTEMPTED TO TAKE ADVANTAGE OF FEDERALISM BY MOVING TO OTHER MORE REASONABLE STATES IN PART TO ESCAPE NEW YORK'S OVERREACHING AND BURDENSOME TAX LAWS MY LAW FIRM REPRESENTS NUMEROUS NEW YORKERS WHO HAVE MOVED TO FLORIDA THESE PEOPLE DID ALL OF THE TYPES OF THINGS PEOPLE WHO MOVE TO A NEW STATE TYPICALLY DO THEY REGISTERED TO VOTE REGISTERED THEIR CARS OBTAINED NEW DRIVER'S LICENSES PURCHASED A HOME PREPARED NEW WILLS AND PAID FLORIDA'S STATE INTANGIBLE TAX NEW YORK STATE HOWEVER CONTENDS THAT THESE FLORIDIANS ARE STILL NEW YORKERS WHO PURPORTEDLY OWE STATE INCOME TAX TO NEW YORK BASED ON THEIR ALLEGED NEW YORK STATE DOMICILES NEW YORK AND FLORIDA'S STATE COMMON LAW AGREE THAT A LIVING INDIVIDUAL CAN BE DOMICILED ONLY IN ONE STATE AT ANY PARTICULAR POINT IN TIME DOMICILE ISSUES ARE EXTREMELY IMPORTANT TO INDIVIDUALS AS DOMICILE DETERMINES MORE THAN JUST TAX OBLIGATIONS A PERSON'S RIGHT TO VOTE AND OBLIGATION TO SERVE ON A JURY EXISTS ONLY IN THE STATE WHERE A CITIZEN IS DOMICILED ACCORDINGLY THE EXISTENCE OF FUNDAMENTAL CONSTITUTIONAL RIGHTS ARE BASED AND DEPEND ON A CITIZEN'S DOMICILE NEW YORK'S ACTIONS HAVE CREATED THE RISK THAT THESE FLORIDIANS WILL BE SUBJECT TO CONFLICTING DETERMINATIONS OF DOMICILE RESULTING IN MULTIPLE TAXES OF DIFFERENT STATES BEING ASSESSED AGAINST THESE PEOPLE ONE WOULD THINK THAT RECOURSE AND A BINDING DETERMINATION AS TO ONE'S DOMICILE COULD BE OBTAINED IN FEDERAL COURT ALAS A FEDERAL STATUTE PROHIBITS TAXPAYERS FROM COMMENCING FEDERAL LAWSUITS CHALLENGING THE CONSTITUTIONALITY OF THE APPLICATION OF A STATE TAX STATUTE UNTIL STATE COURT REMEDIES ARE EXHAUSTED EARLIER THIS YEAR TWO OF MY CLIENTS COMMENCED A LAWSUIT AGAINST NEW YORK IN THE FLORIDA STATE COURT SYSTEM TO OBTAIN A BINDING DETERMINATION REGARDING THEIR DOMICILE THE PROPRIETY OF MAINTAINING JURISDICTION OVER NEW YORK STATE TO CONDUCT SUCH A HEARING IN FLORIDA'S STATE COURTS IS BEING CONSIDERED IN AN APPEAL TO FLORIDA'S FOURTH DISTRICT COURT OF APPEALS NEW YORK'S AGGRESSIVE POSTURE TOWARD FORMER RESIDENTS IS EFFECTIVELY RENDERING THE PROTECTION OF FEDERALISM ILLUSIONARY NOW IT APPEARS THAT ONLY NEW YORK'S SISTERSTATES' COURTS CAN PROTECT FORMER NEW YORKERS FROM THE UNCONTROLLABLE TAXING TENDENCIES OF NEW YORK TAX AUTHORITIES 9301110136 930111 INTERNATIONAL OIL SPILL DRIFTS SALMON FARMS ARE THREATENED SHETLAND FISHING OPERATIONS FACE MILLIONS OF DOLLARS IN IMMEDIATE DAMAGES BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL SUMBURGH SHETLAND ISLANDS A THIN SLICK FROM THE GROUNDED TANKER BRAER HAS DRIFTED 25 MILES UP THE WEST COAST OF THE SHETLAND ISLANDS THREATENING TO DESTROY MUCH OF THE ISLANDS' SALMONFARMING OPERATIONS SOME 16 FARMS ABOUT A THIRD OF THE ISLAND'S TOTAL HAVE ALREADY BEEN BARRED FROM SELLING THEIR FISH BECAUSE OF POLLUTION CONCERNS OWNERS FACE AN ESTIMATED 15 MILLION IN IMMEDIATE DAMAGES A NUMBER THAT COULD INCREASE GREATLY IF THE SLICK MOVES NORTHWARD TO THREATEN OTHER FARMS COMMERCIAL FISHERMEN ALSO ARE EXPECTED TO SUFFER LARGE LOSSES BECAUSE OF THE IMPOSITION OF A 50MILE NOFISHING ZONE AROUND SOME PARTS OF THE SHETLANDS STILL DAMAGE FROM THE SPILL HAS BEEN LESS THAN FEARED LARGELY BECAUSE WINDS HAVE KEPT MUCH OF THE OIL BOTTLED UP IN QUENDALE BAY NEAR THE MAIN ISLAND'S SOUTHERN TIP SALVAGE EXPERTS ESTIMATE MUCH LESS THAN HALF OF THE 25MILLIONGALLON CARGO HAS SPILLED THOUGH THE SHIP SPIKED ON ROCKS JUST OFFSHORE HERE SINCE LAST TUESDAY FACES ANOTHER TEST EARLY TODAY WHEN HURRICANEFORCE WINDS OF UP TO 100 MILESPERHOUR ARE EXPECTED TO BLAST OVER THE SHETLANDS ONCE AGAIN BUT FROM WHAT I'VE SEEN THE SHIP HAS SPILLED NOWHERE NEAR THE OIL THAT WAS SPILLED FROM THE EXXON VALDEZ SAID DAN LAWN AN ALASKA ENVIRONMENTAL OFFICIAL WHO IS ACTING AS AN UNOFFICIAL CONSULTANT TO THE SHETLANDS OILSPILL EFFORT MR LAWN COORDINATED MONITORING OF THE 1989 ALASKA SPILL WHICH DUMPED 11 MILLION GALLONS OF OIL INTO THE PRISTINE WATERS OF PRINCE WILLIAM SOUND IT STILL ISN'T CLEAR WHEN WEATHER CONDITIONS WILL ALLOW SALVAGE AND CLEANUP OPERATIONS TO GET UNDER WAY THE AREA HAS BEEN ROCKED BY AN ALMOST CEASELESS SERIES OF GALES AND STORMS SINCE HURRICANE WINDS FIRST PUSHED THE BRAER WHICH HAD LOST ENGINE POWER ONTO THE ROCKS SALVAGE CREWS SPENT YESTERDAY ASSEMBLING PUMPS AND PIPELINE EQUIPMENT NEAR THE WRECK SITE THAT THEY WILL USE TO PUMP OIL OFF THE SHIP BUT THEY HAVEN'T YET BEEN ABLE TO BOARD THE VESSEL MEANWHILE THE BRAER'S OWNERS BERGVALL & HUDNER SHIP MANAGEMENT CO STAMFORD CONN DENIED BRITISH NEWSPAPER REPORTS THAT ITS GREEK CAPTAIN HAD BEEN LATE TO SEEK HELP AFTER HIS SHIP HAD LOST POWER IN THE 22MILEWIDE STORMTOSSED CHANNEL BETWEEN THE SHETLAND ISLANDS AND FAIR ISLE TO THE WEST NEWS ACCOUNTS SAID THE SHIP MAY HAVE LOST POWER AS EARLY AS 230 AM ON THE MORNING OF THE GROUNDING BUT THE CAPTAIN DIDN'T SEEK COAST GUARD HELP UNTIL 504 AM BUT B&H SAID THAT WHILE ENGINEERS WERE INDEED CALLED OUT TO ADDRESS A MECHANICAL PROBLEM AT THAT TIME THE SHIP'S MAIN ENGINE CONTINUE TO FUNCTION NORMALLY UNTIL KNOCKED OUT BY A POWER FAILURE AT 430 AM UNDER THAT SCENARIO THE CAPTAIN WAITED FOR ONLY SLIGHTLY MORE THAN A HALF HOUR BEFORE PUTTING OUT AN SOS COAST GUARD OFFICIALS HERE DECLINED TO COMMENT ON THE MATTER EXCEPT TO SAY THAT THE TIME THE SHIP WENT ADRIFT IS CLEARLY CENTRAL TO OUR INVESTIGATION IN THIS MATTER 9301110135 930111 US RULES OUT FILING TAX CHARGES AGAINST SALOMON BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT HAS RULED OUT THE OPTION OF FILING TAXFRAUD CHARGES AGAINST SALOMON INC'S SALOMON BROTHERS INC UNIT FOR ALLEGATIONS THAT IT MADE FICTITIOUS TAX TRADES OF GOVERNMENT SECURITIES IN 1986 ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER RATHER THESE INDIVIDUALS SAID SALOMON WILL BE AUDITED BY THE INTERNAL REVENUE SERVICE FOR THE TAX YEAR IN QUESTION AND ASSESSED ANY MONEY OWED TO THE US AS A RESULT OF TAXES AVOIDED BY THE 1986 TRADES THE AUDIT HASN'T OCCURRED YET ANY TAX LIABILITY IN CONNECTION WITH THE TRADES ISN'T EXPECTED TO BE SUBSTANTIAL PROBABLY LESS THAN 5 MILLION COMPARED WITH THE AMOUNTS SALOMON ALREADY HAS PAID IN CONNECTION WITH ITS TREASURY BOND SCANDAL SALOMON LAST YEAR PAID 290 MILLION IN SETTLING SECURITIES AND ANTITRUST CHARGES WITH THE FEDERAL GOVERNMENT AND THE FIRM RECENTLY AGREED TO PAY 4 MILLION TO RESOLVE STATE CLAIMS ARISING FROM ITS GOVERNMENT BOND SCANDAL SALOMON'S SETTLEMENT WITH THE FEDERAL GOVERNMENT SPECIFICALLY RESERVED FOR THE GOVERNMENT THE RIGHT TO TAKE TAX ACTION AGAINST THE FIRM REGARDING THE QUESTION OF FICTITIOUS TAX TRADES A SENIOR TREASURY OFFICIAL STRESSED LAST FALL THAT THE SETTLEMENT DIDN'T PRECLUDE THE FILING OF TAXFRAUD CHARGES AGAINST THE FIRM THE SECURITIES AND EXCHANGE COMMISSION IN COMPLAINTS AGAINST SALOMON AND ITS FORMER HEAD BOND TRADER PAUL MOZER CHARGED THAT SALOMON AND MR MOZER IN 1986 ENGAGED IN GOVERNMENT SECURITIES TRADES TO CREATE FICTITIOUS TAX LOSSES ACCORDING TO THE SEC THESE TRADES CREATED THE FALSE IMPRESSION THAT SALOMON HAD SUSTAINED APPROXIMATELY 168 MILLION IN TRADING LOSSES DURING 1986 MOST OF WHICH WERE CLAIMED AS TRADING LOSSES ON ITS 1986 INCOME TAX RETURN AS A RESULT THE SEC SAID THE FIRM UNDERREPORTED ITS INCOME ON ITS 1986 TAX RETURN UNDERPAID ITS INCOME TAX IN 1986 AND IMPROPERLY DEFERRED PART OF ITS INCOME TAX OBLIGATIONS TO FUTURE YEARS FEDERAL TAX AUTHORITIES HAVEN'T YET RESPONDED TO A CONGRESSIONAL INQUIRY MADE MONTHS AGO ABOUT THE EXTENT TO WHICH OTHER BOND MARKET PARTICIPANTS MAY HAVE ENGAGED IN SIMILAR TAXAVOIDANCE SCHEMES INVOLVING GOVERNMENT SECURITIES THE HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE RUN BY REP JJ PICKLE D TEXAS IS EXPECTED TO PRESS FOR AN ANSWER TO THIS QUESTION 9301110134 930111 LETTERS TO THE EDITOR NEW YORK A LEANER CLEANER DEMEANOR YOUR DEC 10 EDITORIAL PROVIDED SOME WELCOME RECOGNITION FOR GOV MARIO CUOMO'S EFFORTS TO SHRINK THE SIZE AND COST OF GOVERNMENT HERE IN NEW YORK WHY THEY RAISE TAXES A REFERENCE TO PRACTICES ELSEWHERE THANKFULLY THE CUOMO ADMINISTRATION'S RECORD IS BETTER EVEN THAN SUGGESTED BY BEING PUT ON YOUR STATE HONOR ROLL THIS YEAR DESPITE THE TREMENDOUS IMPACT OF THE RECESSION AND ITS ADDED BURDENS WE HAVE BEEN ABLE TO AVOID ANY PERMANENT INCREASES IN BROADBASED TAXES THAT AFFECT OUR COMPETITIVE POSITION IN FACT NEW YORK'S RECORD HAS BEEN ONE OF RESTRAINING TAXES OF CUTTING TAX RATES TO THEIR LOWEST POINT IN MORE THAN 30 YEARS AND REDUCING THE TOTAL BURDEN OF STATE TAXES BELOW WHAT IT WAS IN 1983 NEW YORK STATE GOVERNMENT TAKES A SMALLER BITE OF PERSONAL INCOME THAN DO THE GOVERNMENTS OF 23 OTHER STATES 10 MORE THAN A DECADE AGO WHILE WORKING TO MEET THE NEEDS OF NEW YORKERS WE HAVE STREAMLINED STATE GOVERNMENT CUTTING THE TAXPAYERSUPPORTED WORK FORCE BY MORE THAN 13 ABOLISHING OR ELIMINATING PAY FOR 50 BOARDS AND COMMISSIONS AND HOLDING OUR RATE OF TAXPAYERSUPPORTED SPENDING GROWTH WELL BELOW THE NATIONAL AVERAGE WE IMPROVED OPERATIONS THROUGH THE COMMISSION ON GOVERNMENTAL INTEGRITY THE OFFICES OF INSPECTOR GENERAL AND MANAGEMENT AND PRODUCTIVITY AND THROUGH THE ETHICS IN GOVERNMENT ACT AND THE ACCOUNTABILITY AUDIT AND INTERNAL CONTROL ACT OF 1987 ALL REGARDED AS THE MOST COMPREHENSIVE GOVERNMENTAL REFORMS ENACTED IN MORE THAN 200 YEARS OF NEW YORK STATE HISTORY AND WE REDUCED PRESSURE ON LOCAL PROPERTY TAXPAYERS BY SUCCESSFULLY FIGHTING TO PROTECT DEDUCTIBILITY FROM FEDERAL TAXATION AND DRAMATICALLY INCREASING THE SHARE OF STATE TAX COLLECTIONS REDIRECTED TO LOCAL ASSISTANCE NO LESS AN AUTHORITY ON FISCAL CONSERVATISM THAN THE CATO INSTITUTE REPORTED THAT THE GOVERNOR WHO HAS CUT TAXES THE MOST IS CUOMO HIS IS FAR AND AWAY THE BEST RECORD FOR CUTTING TAXES 9301110132 930111 INTERNATIONAL VOLUNTEERS BATTLE STORM POLLUTION BUT OIL SPILL'S WILDLIFE TOLL MOUNTS BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL BAY OF QUENDALE SHETLAND ISLANDS WINLEY WILLIS HUDDLES SHIVERING BEHIND A RED VAN SHRIEKING WINDS ROCK THE VEHICLE THE AIR TASTES OF OIL SHE IS CRYING MOURNING THE BIRDS WE'VE ONLY BEEN HERE A SHORT WHILE AND HAVE PICKED UP 10 SO FAR ALL DEAD SHE GESTURES TO THE VIOLENT SEA BEHIND HER A 20FOOT WAVE A FROTHING BROWN WALL OF OIL EXPLODES UPON NEARBY ROCKS SHOWERING EVERYTHING NEARBY IN GREASY SPRAY I HAD NO IDEA IT WOULD BE THIS HORRIBLE SAYS MS WILLIS LEANING FORWARD TO BE HEARD ABOVE THE STORM HOW CAN ANY CREATURE CAUGHT IN THIS SURVIVE MOST DON'T AND EVEN THOSE BIRDS LUCKY ENOUGH TO BE PLUCKED FROM THESE SHORES ALIVE AND WHISKED TO TREATMENT CENTERS IN EDINBURGH SCOTLAND STAND LESS THAN A 10 CHANCE OF MAKING IT BACK TO THE WILD ONLY ABOUT 150 HAVE BEEN FOUND ALIVE SO FAR STILL MS WILLIS AND SCORES OF VOLUNTEERS LIKE HER WILL SPEND HUNDREDS OF HOURS ON THESE FREEZING POISONED BEACHES SEARCHING FOR WINGED AND OTHER WILDLIFE VICTIMS OF THE WORLD'S LATEST TANKER DISASTER TUESDAY'S WRECK OF THE TANKER BRAER WON'T GO DOWN AS HISTORY'S BIGGEST OIL SPILL LESS THAN HALF OF THE SHIP'S CARGO OF 25 MILLION GALLONS IS THOUGHT TO HAVE ESCAPED AND THE REST MAY YET BE RECOVERED WHEN THE 80MILE AND 100MILEANHOUR WINDS LET UP AND PERMIT RECOVERY OPERATIONS THESE SAME FIERCE WINDS HAVE THUS FAR KEPT THE HEAVIEST OIL BOTTLED UP ON A FEW BAYS ALONG THE SOUTHWESTERN COAST OF THE ISLAND THIS IS NO SOLACE TO SHETLANDS BIRDLOVERS WHO HAVE WATCHED IN HORROR AS CRUDE OIL LAYS WASTE TO THE BAYS AND BEACHES THAT FORM THE HEART OF ONE OF THE WORLD'S MOST IMPORTANT BIRD FLYWAYS OR ROUTES TAKEN BY MIGRATORY BIRDS GOING TO AND FROM THEIR BREEDING GROUNDS AMONG THE HARDEST HIT AREAS IS SUMBURGH HEAD AN ALMOST HOLY SPOT TO THE WORLD'S BIRDING COMMUNITY ON THE SHETLANDS' SOUTHERN TIP MORE THAN 100 SPECIES OF BIRDS HAVE BEEN COUNTED HERE ITS BREATHTAKINGLY SCENIC BAYS PROVIDE FOODRICH ICEFREE SHELTER FOR NUMEROUS RARE ARCTIC SPECIES INCLUDING THE GREAT NORTHERN DIVER A RELATIVE OF THE AMERICAN LOON IT'S HEARTBREAKING SAYS PETE ELLIS A SHETLANDS RESIDENT AND ORNITHOLOGIST FOR THE ROYAL SOCIETY FOR THE PROTECTION OF BIRDS WHICH IS HELPING COORDINATE RESCUE EFFORTS THE SOCIETY ESTIMATES THAT AS MANY AS 6000 BIRDS HAVE ALREADY DIED THOUGH ONLY SOME 600 CARCASSES HAVE BEEN RECOVERED THE RECOVERY RATE OF BODIES IS ABOUT ONE FOR EVERY TEN BIRDS KILLED KNOWN DEATHS AMONG SHAGS A CRESTED RELATIVE OF THE CORMORANT ACCOUNT FOR 10 OF THE ENTIRE SHETLAND ISLANDS POPULATION AND A WIND SHIFT COULD EASILY BLOW THE OIL THROUGHOUT THE ISLANDS AND FAR OUT TO SEA JEOPARDIZING TENS OF THOUSANDS OF BIRDS MOST OF THE VOLUNTEERS TRYING TO RESCUE WILDLIFE ARE SHETLANDERS BUT MANY COME FROM ENGLAND SCOTLAND AND CONTINENTAL EUROPE INDEED SINCE THE SHIP WENT AGROUND THE ENVIRONMENTAL GROUP GREENPEACE HAS BEEN GETTING 200 CALLS A DAY FROM AS FAR AWAY AS NEW ZEALAND AND AMERICA FROM WOULDBE RESCUERS WILLING TO PAY THEIR OWN WAY HERE TO JOIN IN THE EFFORT MOST ARE THANKED POLITELY BUT TOLD NOT TO COME THERE ARE ALREADY PLENTIFUL VOLUNTEERS CONSIDER THIS SCENE ON A SHETLANDS BEACH A FEW DAYS AFTER THE SPILL AS THE WILD STORMS THAT WHIPPED UP 100FOOT WAVES AND DROVE THE POWERLESS BRAER ON THE ROCKS SHOW NO SIGNS OF ABATING KEEPING YOUR FOOTING IS TRICKY ENOUGH IN 80MILEANHOUR WINDS BUT OILY SPRAY HAS GIVEN THE ROCKY BEACH A VASELINELIKE COATING MAKING WALKING TREACHEROUS THE AMBIENT TEMPERATURE HOVERS AROUND FREEZING BUT THE WINDCHILL FACTOR IS PERHAPS 40 DEGREES BELOW ZERO IT'S IN THESE CONDITIONS THAT MS WILLIS AND FIVE OTHER VOLUNTEERS FROM AYLESBURY IN ENGLAND SEARCH A BEACH TEN DEAD BIRDS GROW TO 20 NOTHING IS FOUND ALIVE A BIRD WEAKENED BY OIL IS LIKELY TO BE POUNDED TO DEATH BEFORE IT EVER REACHES SHORE ONCE ON THE BEACH HYPOTHERMIA CAUSED WHEN OIL ROBS FEATHERS OF THEIR WATERPROOFING AND WARMTH QUICKLY SETS IN HER GROUP AFFILIATED WITH THE EUROPEAN WILDLIFE REHABILITATORS ASSOCIATION TAKES A BREAK AND CONGREGATES FOR WARMTH IN A RENTED VAN THEY ARE SITTING ATOP BOXES OF GLUCOSE ANTIBIOTICS AND VALIUM THE FIRST LINE OF TREATMENT FOR OILED CRITTERS WHOSE SYMPTOMS INCLUDE DEHYDRATION AND SHOCK LATER THE VOLUNTEERS WILL TURN THEIR EFFORTS TO THE RESCUE OF OILED SEALS AND SEA OTTERS WHICH ALMOST CERTAINLY WILL BEGIN TO SHOW UP ON BEACHES IN THE NEXT FEW DAYS BUT BIRDS ALWAYS THE FIRST TO SICKEN AND DIE IN OIL SPILLS HAVE THEIR ATTENTION NOW THE NEXT MORNING THE WEATHER BREAKS FOR ABOUT THREE HOURS CHARLIE HAMILTON JAMES AN UNEMPLOYED WILDLIFE PHOTOGRAPHER FROM BRISTOL ENGLAND WHO IS A VETERAN OF OTHER SMALLER SPILLRECOVERY EFFORTS ARRIVES AT 11 AM ON THE SAME BEACH SWEPT BY MS WILLIS'S TEAM THE DAY BEFORE MR JAMES WHO HAS GONE ABOUT 3000 4595 IN DEBT TO JOIN THE BIRDRECOVERY TEAMS HERE SAYS HE IS LARGELY DRIVEN BY COMPASSION AND ADMITS TO BEING SLIGHTLY DAFT TO WANT TO WORK IN CONDITIONS LIKE THIS DRESSED IN A BLUE AND YELLOW SLICKER SUIT A SKI HAT AND RUBBER BOOTS HE SETS OFF DOWN THE BEACH CARRYING A LARGE BLACK NET HE MAKES ONE ADDITION TO HIS OUTFIT STRAPPING ON A GAS MASK TO FILTER OUT THE ACRID PETROLEUM VAPORS FIFTEEN MINUTES LATER THE WEATHER HAS GROWN WORSE IT BEGINS TO SLEET BUT MR JAMES HAS GOTTEN LUCKY FINDING TWO BADLY OILED SHAGS THAT HAVE BEEN BLOWN INTO A SHEEP PASTURE ON A BLUFF PERHAPS 20 FEET ABOVE THE OCEAN THE BIRDS ARE FEISTY ENOUGH TO PECK AT HIS GLOVES AND JACKET A SIGN HE SAYS THAT THEY MAY BE STRONG ENOUGH TO SURVIVE HE QUICKLY PUTS THEM IN SMALL BROWN BURLAP BAGS TIES THEM WITH STRING AND TRUDGES OFF AGAIN A SHORT WALK REVEALS A BROAD PEBBLED BEACH SMOTHERED IN OILY KELP THAT WAS DRIVEN HIGH UP THE SHORE BY STORM TIDES A BATTERED OILCLOAKED SEAL LIES DEAD FOUR OTHER SEALS SWIM IN SLOW CIRCLES IN A THICK OILY SOUP JUST OFF THE BEACH THEY APPEAR TO BE SICK AN EIDER DUCK STRUGGLES JERKILY OUT OF THE SURF GAINS THE BEACH AND COLLAPSES MR JAMES PICKS HIS WAY ACROSS THE OILY ROCKS WITH HIS NET THE DUCK SEES HIM PANICS STRUGGLES BACK INTO THE WATER A SPRINT ONLY EARNS MR JAMES A FREEZING BATH OF SPRAY FROM A BREAKER THE DUCK DISAPPEARS LATER IT WILL BE FOUND FLOATING DEAD BUT 50 YARDS DOWN THE BEACH A LONGTAILED DUCK ITS GOLDEN HEAD VISIBLE AMONG OILY GRAY PEBBLES SITS PREENING ITSELF MR JAMES STALKS DOWN THE BEACH AT WATERLINE THEN MAKES ANOTHER MAD DASH ACROSS THE ROCKS THIS TIME HE IS SUCCESSFUL THE DIMINUTIVE DUCK IS BAGGED BUT VISIBLY SHIVERING HYPOTHERMIA IS SETTING IN THE WEATHER SUDDENLY TURNS INCONCEIVABLY AWFUL AN EERIE DARKNESS FALLS AND THE WIND BEGINS TO HOWL SLEET DRIVEN HORIZONTALLY BITES LIKE NAILS INTO ANY EXPOSED SKIN MR JAMES BEGINS TO MAKE HIS WAY BACK ALONG THE WAY HE STUMBLES UPON ANOTHER EIDER DUCK SITTING ALIVE BUT MOTIONLESS IN A PATCH OF GREASY SEA GRASS MR JAMES BENDS DOWN AND CUPS THE BIRD'S HEAD IT'S NO USE HE SAYS THIS ONE WON'T MAKE IT HE TAKES THE BIRD'S NECK IN HIS HANDS I'VE NEVER DONE THIS BEFORE HE SAYS LOOKING PLAINTIVELY AT AN OBSERVER LOOKING AWAY HE BREAKS THE DUCK'S NECK IT SHUDDERS SLIGHTLY THEN DIES 9301110131 930111 INDIAN FIRMS RAISED A RECORD 58 BILLION FROM NEW ISSUES IN '92 SPECIAL TO THE WALL STREET JOURNAL NEW DELHI INDIAN COMPANIES RAISED A RECORD 16657 BILLION RUPEES 58 BILLION IN THE PRIMARY CAPITAL MARKET LAST YEAR DESPITE ONE OF THE MOST SEVERE CRASHES IN THE MARKET'S HISTORY BUT POLITICAL UNCERTAINTY THAT FOLLOWED THE DESTRUCTION OF A MOSQUE BY HINDU ZEALOTS IN AYODHYA ON DEC 6 HAS CONSIDERABLY DAMPED INVESTOR CONFIDENCE ACCORDING TO PRIME DATA BASE WHICH MONITORS NEW ISSUES IN INDIA THE YEAR SAW 864 SHARE ISSUES UP FROM 441 IN 1991 MOST OF THE MONEY 11180 BILLION RUPEES CAME FROM RIGHTS ISSUES ACCORDING TO RESEARCH COMPILED LAST WEEK BY PRIME PUBLIC ISSUES ACCOUNTED FOR THE BALANCE AT 5477 BILLION RUPEES THE NEWISSUES BOOM WAS MOST PRONOUNCED IN THE FOURTH QUARTER WITH 7125 BILLION RUPEES OR ABOUT 43 OF THE TOTAL RAISED THROUGH THE YEAR BUT THE AYODHYA TRAGEDY RESULTED IN INVESTORS SHYING AWAY FROM THE MARKET IN DECEMBER ACCORDING TO PRIME'S PRITHVI HALDEA OF THE 52 PUBLIC ISSUES LAST MONTH 28 WERE OBLIGED TO EXTEND THEIR CLOSING DATES AND 20 MORE WERE COMPLETED ON THE LAST ANNOUNCED CLOSING DATE THE FINAL RESULT WAS THAT SEVERAL ISSUES BOMBED DURING THE LAST QUARTER MR HALDEA SAID THE REAL CRUNCH CAME IN DECEMBER WHICH LED TO A VIRTUAL COLLAPSE OF THE MARKET INDICATING THAT THE INVESTOR HAS FINALLY BEGUN TO STAY AWAY FROM SEVERAL ISSUES AND EVEN TOP COMPANIES COULD SUFFER FROM UNDERSUBSCRIPTIONS THE BOMBAY SENSITIVE INDEX WHICH PEAKED ABOVE 4500 IN APRIL CRASHED TO ALMOST HALF THAT LEVEL IN MIDDECEMBER A FALL TRIGGERED BY THE DISCOVERY IN APRIL THAT MORE THAN 126 BILLION OF BANK FUNDS HAD BEEN ILLEGALLY DIVERTED INTO THE STOCK MARKET SPURRING CRIMINAL PROSECUTIONS AND A PARLIAMENTARY INQUIRY INTO THE FRAUD NEVERTHELESS PRIME SAID THAT 2193 COMPANIES HAD BY DEC 31 ANNOUNCED PLANS TO ENTER THE MARKET IN 1993 SEEKING TO RAISE 26692 BILLION RUPEES AND THAT MANY MORE ARE LIKELY TO ANNOUNCE SUCH PLANS DURING THE YEAR BUT DUE TO THE PREVAILING UNCERTAINTY NOT ALL OF THESE PLANS MAY MATERIALIZE MR HALDEA EXPECTS THAT OF THE 135 ISSUES SLATED FOR THIS MONTH THE ACTUAL NUMBER MAY NOT EXCEED 50 9301110130 930111 AEROSPACE FIRMS HAD PROFIT RISES IN 4TH QUARTER MODERATE GAINS ESTIMATED AS BOEING ESYSTEMS TEXTRON PLAN CHARGES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL RESULTS WILL BE SKEWED FOR A NUMBER OF COMPANIES INCLUDING BOEING CO ESYSTEMS INC AND TEXTRON INC THAT ARE PLANNING TO TAKE BIG ONETIME CHARGES FOR RETIREE MEDICAL BENEFITS THE CHARGES STEM FROM A NEW FEDERAL ACCOUNTING RULE THAT REQUIRES COMPANIES TO SHOW ESTIMATED COSTS OF PROVIDING FUTURE HEALTH CARE ON THEIR FINANCIAL STATEMENTS BY 1993 OTHER CANDIDATES FOR THE BENEFITS CHARGE ARE GRUMMAN CORP MARTIN MARIETTA CORP AND UNITED TECHNOLOGIES CORP IT MAKES SENSE TO DO IT IN THE FOURTH QUARTER AND GET IT OVER WITH AND BEHIND YOU SAYS ANALYST HOWARD RUBEL OF CJ LAWRENCE HE AND OTHER ANALYSTS SAY THEY'LL BE LOOKING LESS AT FOURTHQUARTER EARNINGS THAN AT BALANCE SHEETS AND CASH FLOW AS GAUGES OF FUTURE FLEXIBILITY TO MAKE ACQUISITIONS ONE BIG DEFENSE AND SPACE CONCERN THAT HAS ALREADY TAKEN ADVANTAGE OF THE CHANGING INDUSTRY CLIMATE IS MARTIN MARIETTA WHICH HAS AGREED TO BUY GENERAL ELECTRIC CO'S AEROSPACE DIVISION BUT THE DEAL WON'T AFFECT MARTIN MARIETTA'S BALANCE SHEETS UNTIL IT CLOSES IN THE CURRENT QUARTER THE BETHESDA MD CONTRACTOR IS EXPECTED TO REPORT EARNINGS OF ABOUT 171 A SHARE COMPARED WITH 89 CENTS A YEAR EARLIER THE 1991 FIGURE INCLUDES A ONETIME RESTRUCTURING CHARGE OF 78 CENTS A SHARE LOCKHEED CORP'S RECENT AGREEMENT TO BUY THE FIGHTER PLANE BUSINESS OF GENERAL DYNAMICS CORP IS ANOTHER INDUSTRYRATTLING DEAL THAT WON'T BE REFLECTED IN THE FOURTH QUARTER LOCKHEED SHOULD REPORT QUARTERLY EARNINGS OF ABOUT 190 A SHARE COMPARED WITH 163 A YEAR EARLIER SAYS MR RUBEL HIS ESTIMATE IS 12 CENTS ABOVE AN AVERAGE EMERGING FROM A CONSENSUS AMONG AEROSPACE SECURITIES ANALYSTS PESSIMISTS CITE LOSSES AT THE CALABASAS CALIF COMPANY'S AIRCRAFT MAINTENANCE UNIT AND POSSIBLE RESTRUCTURING CHARGES AMONG DEFENSEELECTRONIC CONCERNS BOTH LORAL CORP AND ESYSTEMS ARE EXPECTED TO REPORT DOUBLEDIGIT GAINS IN EARNINGS LORAL WHOSE FISCAL YEAR ENDS MARCH 31 SHOULD GET A BOOST FROM ITS 1992 ACQUISITION OF LTV CORP'S MISSILE BUSINESS GENERAL DYNAMICS LOOKS TO BE THE BIGGEST FOURTHQUARTER GAINER AND THE BIGGEST EXCEPTION TO THE GENERAL INDUSTRY RULE THE FALLS CHURCH VA CONTRACTOR HAS BEEN SHEDDING ASSETS INCLUDING ITS CORE AIRCRAFT UNIT AT A RATE THAT PROMISES A WHOPPING EARNINGS JUMP BUT HOW HIGH IT'S GOING TO BE HARD TO INTERPRET THE RESULTS WHO KNOWS HOW THEY'RE GOING TO CLASSIFY EVERYTHING SAYS JACK MODZELEWSKI AN ANALYST AT PAINE WEBBER MR MODZELEWSKI FORECASTS EARNINGS OF 218 A SHARE FOR THE COMPANY'S CONTINUING OPERATIONS COMPARED WITH 156 CENTS A YEAR EARLIER HIS ESTIMATE IS CLOSE TO THE 213ASHARE ANALYSTS' CONSENSUS WHICH INCLUDES PREDICTIONS RANGING FROM A LOW OF 188 A SHARE TO A HIGH OF 260 ALTHOUGH MCDONNELL DOUGLAS CORP WAS ANOTHER EARLY1992 WILD CARD BECAUSE OF THREE BIG WRITEOFFS ON THE COMPANY'S C17 MILITARY TRANSPORT PROGRAM MOST ANALYSTS AREN'T EXPECTING A REPEAT PERFORMANCE IN THE FOURTH QUARTER BUT MCDONNELL DOUGLAS'S DEBT ITS NUMBER OF JET DELIVERIES AND A POSSIBLE GAIN RELATED TO A RECENT TRANSACTION TO CUT ITS INTERNAL COMPUTER OPERATIONS ARE OPEN QUESTIONS MR RUBEL WHO SAYS HE ISN'T ASSUMING ANOTHER C17 CHARGE EXPECTS THE ST LOUIS COMPANY TO REPORT EARNINGS OF 225 A SHARE COMPARED WITH 277 A YEAR EARLIER SEATTLE JETLINER MAKER BOEING IS GENERALLY EXPECTED TO HAVE EARNINGS OF ABOUT 112 A SHARE COMPARED WITH 117 A YEAR EARLIER BILL WHITLOW WHO FOLLOWS BOEING FOR PACIFIC CREST SECURITIES EXPECTS THE COMPANY'S DEFENSE BUSINESS TO START SHOWING PROFITS FOLLOWING THE CANCELLATION OF SEVERAL UNPROFITABLE PROGRAMS FOR THE LONG TERM THOUGH DEFENSEINDUSTRY RESHAPING AND FUTURE MERGERS ARE OVERSHADOWING QUARTERLY EARNINGS PERFORMANCES THE BALANCE SHEET IS IMPORTANT BECAUSE THE INVESTMENT COMMUNITY HAS FINALLY ACCEPTED THE CONSOLIDATION THESIS FOR THE INDUSTRY SAYS JERRY CANTWELL AN ANALYST AT WERTHEIM SCHRODER 9301110129 930111 FOR THAILAND'S CHUAN TIME HAS COME TO START CONVERTING IDEAS INTO POLICIES BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK PRIME MINISTER CHUAN LEEKPAI ELECTED LARGELY ON PROMISES TO BRING SWEEPING CHANGE TO GOVERNANCE IN THAILAND CAN'T POINT TO ONE MAJOR POLICY INITIATIVE OR ONE NEW PROGRAM IMPLEMENTED SINCE HIS GOVERNMENT WAS FORMED 100 DAYS AGO YET HE COMMANDS WIDE POPULAR SUPPORT AND COMES IN FOR VERY LITTLE PUBLIC CRITICISM MR CHUAN'S GENEROUS HONEYMOON WITH THE THAI ELECTORATE REFLECTS IN PART THE NATION'S BATTLE FATIGUE AFTER NEARLY TWO YEARS OF POLITICAL TURMOIL AND THE PREVAILING HOPE THAT HE WILL SUCCEED IN ESTABLISHING A STABLE RESPONSIVE DEMOCRACY AT THE SAME TIME MR CHUAN'S INTEGRITY AND PERCEIVED COMMITMENT TO BETTERING THE LIVES OF ORDINARY THAIS HAVE KEPT HIM HEAD AND SHOULDERS ABOVE HIS RIVALS BOTH IN THE RULING MULTIPARTY COALITION AND IN THE OPPOSITION HOWEVER SIGNS ARE BEGINNING TO EMERGE THAT PATIENCE WITH THE NEW GOVERNMENT IS WEARING THIN IN COMING MONTHS ANALYSTS SAY MR CHUAN WILL HAVE TO PUT TO WORK SOME OF THE MANY POLICY IDEAS BEFORE HIM OR RISK LOSING SUPPORT PEOPLE WANT TO SEE A LEADER WHO IS SOMEONE SPECIAL COMPETENT TO SOLVE NATIONAL PROBLEMS SAYS ABHISIT VEJJAJIVA SPOKESMAN FOR THE PRIME MINISTER TIME WILL PROVE WHETHER HE IS MERELY AN ORDINARY LEADER MR CHUAN HAS SAID HIS GOALS ARE MEANT TO BE ACHIEVED OVER FOUR YEARS NOT OVERNIGHT FEW THAI GOVERNMENTS IN THE PAST HAVE LASTED THAT LONG AND MANY ANALYSTS EXPECT A CABINET REORGANIZATION AND PERHAPS A CHALLENGE FROM THE LEADER OF ANOTHER PARTY BEFORE THE END OF THE YEAR MR CHUAN A LAWYER AND VETERAN POLITICIAN WAS THE MOST WIDELY ACCEPTED CHOICE FOR PRIME MINISTER AFTER THE SEPTEMBER NATIONAL ELECTION HIS ELEVATION TO THE TOP POST CAME AFTER VIOLENT CONFRONTATIONS BETWEEN PRODEMOCRACY PROTESTERS AND GOVERNMENT TROOPS LEFT 52 DEAD AND 63 MISSING IN MAY LEADING TO THE COLLAPSE OF THE MILITARYBACKED GOVERNMENT OF SUCHINDA KRAPRAYOON SOFTSPOKEN AND FROM HUMBLE ROOTS IN SOUTHERN THAILAND MR CHUAN ASSUMED THE JOB OF PRIME MINISTER WITH A BROAD MANDATE DOGGED ONLY BY PUBLIC CONCERN THAT HE MIGHT BE INDECISIVE BY MANY ACCOUNTS THE CONCERN HAS PROVEN WELLFOUNDED GOVERNMENT OFFICIALS SAY MR CHUAN 53 YEARS OLD APPEARS RELUCTANT TO SINGLE OUT PRIORITIES AMID THE MYRIAD OF ISSUES BEFORE HIM IN TWO IMPORTANT FOREIGNPOLICY TESTS A BORDER DISPUTE WITH BURMA AND AN INTERNATIONAL EFFORT TO ISOLATE THE KHMER ROUGE IN CAMBODIA HE HAS HAD LITTLE ROLE IN DECISIONMAKING THE GOVERNMENT'S WAFFLING ON THOSE ISSUES FOR SEVERAL WEEKS THREATENED TO ENSNARE THAILAND IN MILITARY CONFLICT WITH BURMA AND TO PUT THAILAND AT ODDS OVER CAMBODIA WITH MOST OF THE INTERNATIONAL COMMUNITY FINALLY FOREIGN MINISTRY OFFICIALS RESOLVED BOTH ISSUES AT LEAST TEMPORARILY STILL THE GENERAL FEELING IS THAT MR CHUAN AND HIS CABINET SHOULD BE GIVEN MORE TIME TO PUT THEIR IDEAS TO WORK THE PRIME MINISTER'S TOP PRIORITY IS TO ENCOURAGE DEVELOPMENT OUTSIDE OF BANGKOK AND THUS HELP REDRESS ECONOMIC DISPARITIES BETWEEN URBAN AND RURAL AREAS MANY OF HIS PLANS ARE EMBODIED IN THE NATIONAL BUDGET THAT IS EXPECTED TO RECEIVE PARLIAMENTARY APPROVAL IN A SPECIAL SESSION IN APRIL THEN IN MAY WITH THE BEGINNING OF A NEW LEGISLATIVE SESSION POLITICAL ANALYSTS HOPE OTHER INITIATIVES WILL MOVE FORWARD PEOPLE SEEM TO EXPECT MORE I THINK IT IS A VERY GOOD START FOR A COALITION GOVERNMENT WE CANNOT EXPECT SOME IMPROVEMENT IN THE RURAL ECONOMY OVERNIGHT SAYS SU CHIT BUNBONGKARN HEAD OF THE POLITICAL SCIENCE DEPARTMENT AT CHULALONGKORN UNIVERSITY WHEN MR CHUAN'S CABINET WAS NAMED ON SEPT 29 THE LINEUP WAS WIDELY HAILED AS THAILAND'S BEST AND BRIGHTEST GROUP OF ELECTED POLITICIANS EVER TO HEAD GOVERNMENT MINISTRIES BUT LIKE MR CHUAN THEY SO FAR HAVEN'T BEEN ABLE TO TURN IDEAS INTO POLICY OR POLICY INTO LAW THEY HAVE CIRCULATED PROPOSALS AIMED AT SOLVING A RANGE OF PROBLEMS INCLUDING CHILD PROSTITUTION TRAFFIC CONGESTION POLICE CORRUPTION AND POLLUTION BUT THEY SEEM BOGGED DOWN IN TRYING TO ARRIVE AT FINAL SOLUTIONS THE CHARITABLE VIEW IS THAT A LOT IS HAPPENING BEHIND THE SCENES SAYS A BUSINESSMAN IN BANGKOK FRUSTRATED ACTIVIST GROUPS ARE LESS MAGNANIMOUS THEY SAY THE GOVERNMENT TALKS ABOUT DECENTRALIZATION AND SPREADING AROUND THE NATION'S WEALTH BUT FAILS TO VOLVE LOCAL LEADERS IN DECISIONMAKING THE CABINET MEMBERS ARE QUITE IMPRESSIVE BUT WORKING A LITTLE BIT SLOWLY SAYS SANT HATHIRAT A LEADER OF THE CONFEDERATION FOR DEMOCRACY WHICH ORGANIZED THE ANTIGOVERNMENT DEMONSTRATIONS IN APRIL AND MAY MR CHUAN CONTINUES TO BENEFIT FROM HUNDREDS OF REFORMS PASSED BY THE INTERIM ADMINISTRATIONS OF ANAND PANYARACHUN WHO SERVED AS PRIME MINISTER FOR 13 MONTHS AFTER A FEBRUARY 1991 COUP AND FOR FOUR MONTHS AFTER THE MAY 1992 MILITARY CRACKDOWN ANALYSTS ALSO POINT OUT THAT MUCH OF THE WORK OF GOVERNMENT IS CARRIED OUT BY COMPETENT TECHNOCRATS AND THAT PAST ELECTED ADMINISTRATIONS ALSO HAVE BEEN SLOW TO GET GOING SOME SUPPORTERS PRIVATELY HOPE MR CHUAN WILL SHED HIS LOWPROFILE IMAGE AND LATCH ONTO ONE OR TWO HIGHLY VISIBLE ISSUES SUCH AS WATER SHORTAGES AND STALLED INFRASTRUCTURE PROJECTS BUSINESS LEADERS APPEAR TO BE HOLDING THEIR BREATH FOR NOW PLEASED WITH THE RETURN OF POLITICAL STABILITY AND HOPING IT WILL LAST WE WERE SO HAPPY ABOUT THE ELECTION NOW WE WORRY THAT IF HE DOESN'T DO SOMETHING WE WILL BE RIGHT BACK WHERE WE STARTED SAYS A BANK VICE PRESIDENT THE BIGGEST DANGER IF THE PRIME MINISTER DOESN'T PICK UP THE PACE LIES WITHIN HIS COALITION MR CHUAN HAS BEEN VERY CAREFUL NOT TO IRK THE LEADERS OF THE TWO LARGEST COALITION PARTNERS CHAVALIT YONGCHAIYUDH AND CHAMLONG SRIMUANG BUT RUMORS ARE SPREADING THAT BY MAY MR CHAVALIT MAY TRY TO FORM AN ALLIANCE WITH FORMER PRIME MINISTER CHATICHAI CHOONHAVAN NOW LEADER OF THE OPPOSITION NATIONAL DEVELOPMENT PARTY ANALYSTS SAY PUSHING MR CHUAN ASIDE WILL BE DIFFICULT CHUAN HAS A GOOD RELATIONSHIP WITH THE THAI PEOPLE AND HE SERVES THE THAI SITUATION RIGHT NOW NO ONE ELSE CAN DO THAT SAYS DEJ POOMKACHA HEAD OF THE SOCIAL RESEARCH INSTITUTE MANY POLITICAL ANALYSTS AGREE THAT MR CHUAN NEEDN'T WORRY ABOUT A THREAT FROM THE MILITARY AT PRESENT HOWEVER 17 COUPS OR COUP ATTEMPTS IN 60 YEARS OF PUTATIVE PARLIAMENTARY DEMOCRACY MAKE ANALYSTS WARY OF PREDICTING THE END OF MILITARY INTERVENTION IN THAI POLITICS 9301110128 930111 LAW LEGAL BEAT DEFENDANT SAYS THRIFT AGENCY SHOULDN'T LIMIT ATTORNEYS' FEES BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL CAN THE GOVERNMENT TELL DEFENDANTS IN SAVINGSANDLOAN CASES HOW MUCH THEY MAY PAY THEIR LAWYERS THE GOVERNMENT SAYS YES AND IT IS LIMITING THE DEFENDANTS' SPENDING IN SOME CASES TO 250 AN HOUR A LEVEL THAT DEFENSE ATTORNEYS CLAIM DEPRIVES DEFENDANTS OF QUALIFIED LEGAL COUNSEL WHILE THE GOVERNMENT SAYS THE LEVEL IS HIGH ENOUGH TO ASSURE COMPETENT COUNSEL DEFENSE ATTORNEYS SAY IT IS FAR BELOW THE FEES CHARGED BY TOPNOTCH LAWYERS SOME CLAIM THE POLICY ADOPTED BY THE OFFICE OF THRIFT SUPERVISION IS PART OF A GROWING EFFORT BY THE GOVERNMENT TO UNDERMINE THE ABILITY OF WHITECOLLAR DEFENDANTS TO FIGHT THE ALLEGATIONS AGAINST THEM TO HAVE THE GOVERNMENT DETERMINE WHAT'S REASONABLE AND NECESSARY FOR A PRIVATE CITIZEN TO DEFEND AGAINST THE GOVERNMENT IS EXTREMELY DANGEROUS SAYS HARVEY SILVERGLATE A BOSTON ATTORNEY WHO SPECIALIZES IN CRIMINAL DEFENSE AND CIVIL LIBERTIES WORK BUT MR SILVERGLATE SAYS US SUPREME COURT DECISIONS IN RECENT YEARS PERMITTING GOVERNMENT CONTROLS OVER DEFENDANTS' ASSETS MAKE IT UNLIKELY THAT THE OTS RESTRICTIONS WILL BE LIFTED THE CONTROVERSY HAS COME TO A HEAD IN THE CASE OF THOMAS SPIEGEL THE FORMER CHIEF OF COLUMBIA SAVINGS & LOAN WHO WAS INDICTED IN JUNE ON 55 COUNTS OF BANK FRAUD BRIBERY AND OTHER CRIMES MR SPIEGEL'S ASSETS ALREADY HAD BEEN FROZEN IN A SEPARATE CIVIL CASE BY THE OTS THE AGENCY CHARGED WITH RECOVERING SAVINGSANDLOAN MONEY THE AGENCY HAS BROAD POWERS TO FREEZE THE ASSETS OF DEFENDANTS SUSPECTED OF LOOTING SAVINGS AND LOANS THE AGENCY SAYS THAT BECAUSE IT MAY BE ENTITLED TO A JUDGMENT OF AS MUCH AS 40 MILLION AGAINST MR SPIEGEL IN THE CIVIL CASE IT CAN RESTRICT HOW MR SPIEGEL SPENDS HIS ASSETS THE 250ANHOUR CAP IS ESSENTIALLY MR SPIEGEL'S OTSAPPROVED ALLOWANCE FOR LAWYERS IN HIS CRIMINAL AND CIVIL CASES THE OTS ORDER ALSO BARS MR SPIEGEL FROM PAYING HIS LAWYERS A RETAINER OR MONEY UP FRONT AS OFTEN IS REQUIRED BY CRIMINAL DEFENSE ATTORNEYS THE LAWYER MR SPIEGEL HAS CHOSEN FOR THE CRIMINAL CASE ROBERT MORVILLO OF THE NEW YORK CRIMINAL DEFENSE FIRM MORVILLO ABRAMOWITZ GRAND IASON & SILBERBERG SAYS HE WANTS A SIXFIGURE RETAINER BEFORE HE FORMALLY WILL TAKE THE CASE MR MORVILLO ALSO SAYS THE 250 FIGURE IS TOO LOW HE WON'T CONFIRM HIS USUAL HOURLY RATE BUT OTHER ATTORNEYS SAY IT IS NEARLY 400 MR MORVILLO'S REQUEST THAT THE OTS POLICY BE OVERTURNED WAS REJECTED IN NOVEMBER BY THE FEDERAL JUDGE OVERSEEING MR SPIEGEL'S CRIMINAL CASE IN LOS ANGELES MR MORVILLO HAS ASKED THE FEDERAL APPEALS COURT IN SAN FRANCISCO TO REVIEW THE RULING ARGUING THAT THE RESTRICTION VIOLATES HIS CLIENT'S CONSTITUTIONAL RIGHT TO CHOOSE THE LAWYER OF HIS CHOICE REID M FIGEL AN ASSISTANT US ATTORNEY IN NEW YORK HANDLING THE SPIEGEL CASE JOINTLY WITH THE US ATTORNEY'S OFFICE IN LOS ANGELES SAYS PROSECUTORS WILL URGE THE APPEALS COURT TO LET THE LOWERCOURT RULING STAND MR FIGEL ALSO SAYS HE BELIEVES THAT THE CHALLENGES TO THE OTS RESTRICTIONS ARE A DELAYING TACTIC AND THAT MR MORVILLO WILL REPRESENT MR SPIEGEL REGARDLESS OF THE OUTCOME AS FOR THE OTS THE AGENCY SAYS IT IS BEING MORE THAN GENEROUS CONSIDERING THAT IT IS RECOVERING TAXPAYERS' MONEY FOR THE FAILURE OF COLUMBIA SAVINGS DEFENDANTS IN SAVINGSANDLOAN CASES AREN'T ABLE TO SPEND WHATEVER THEIR HEART DESIRES SAYS CAROLYN LIEBERMAN THE AGENCY'S ACTING CHIEF COUNSEL THE OTS SAYS IT CAME UP WITH THE 250ANHOUR LIMIT BASED ON THE MARKET RATES THAT THE AGENCY PAYS ITS OWN OUTSIDE COUNSEL INITIALLY THE RATE WAS 200 AN HOUR BUT IN 1991 A FEDERAL JUDGE OVERSEEING THE CASE OF DAVID PAUL THE FORMER HEAD OF MIAMI'S CENTRUST SAVINGS & LOAN ORDERED AN INCREASE IN THE RATE TO 250 AND THAT IS WHERE THE OTS SAYS IT WILL STAY WE'RE TRYING TO BALANCE THE DEFENDANT'S INTERESTS WITH THOSE OF THE TAXPAYER MS LIEBERMAN SAYS THE POWER OF THRIFT REGULATORS OVER DEFENDANTS' ASSETS ALSO STIRRED CONTROVERSY LAST YEAR WHEN THE OTS FROZE THE ACCOUNTS OF THE LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER WHICH REPRESENTED CHARLES KEATING'S LINCOLN SAVINGS & LOAN ASSOCIATION THE THRIFT AGENCY ACCUSED THE NEW YORKBASED LAW FIRM OF HELPING ITS CLIENT CIRCUMVENT THRIFT REGULATIONS AT THAT TIME MANY LAWYERS EXPRESSED OUTRAGE OVER THE POWER OF THE OTS SAYING THAT THE FREEZE ON ASSETS LIMITED KAYE SCHOLER'S ABILITY TO FIGHT THE GOVERNMENT'S ALLEGATIONS THE LAW FIRM QUICKLY AGREED TO PAY 41 MILLION TO SETTLE THE OTS CHARGES THE LEGAL BASIS FOR THE RESTRICTIONS ON ATTORNEY FEES ARE TWO SUPREME COURT DECISIONS FROM 1989 DEALING WITH MONEY LAUNDERING LAWS AND THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT IN THOSE CASES THE SUPREME COURT HELD THAT THE GOVERNMENT WAS ENTITLED TO CONTROL ILLEGALLY OBTAINED MONEY EVEN IF IT MEANT BEGGARING THE DEFENDANT AND MAKING IT IMPOSSIBLE TO PAY A LAWYER BUT ABBE LOWELL A WASHINGTON DC LAWYER REPRESENTING MR PAUL SAYS THAT IN THOSE CASES BEFORE THE SUPREME COURT THE MONEY WAS TRACEABLE TO A CRIME HE SAYS THE OTS ATTEMPTS TO FREEZE ALL OF A DEFENDANT'S ASSETS AND NOT JUST MONEY THAT WAS ALLEGEDLY GAINED THROUGH WRONGDOING STEPHEN GILLERS A PROFESSOR AT NEW YORK UNIVERSITY LAW SCHOOL WHO SPECIALIZES IN LEGAL ETHICS SAYS HE BELIEVES THE COURT CHALLENGE TO THE OTS'S RESTRICTIONS IS UNLIKELY TO SUCCEED I THINK THEY HAVE BEEN AGGRESSIVE BUT THEY HAVEN'T CROSSED THE LINE HE SAYS STILL PROF GILLERS SAYS HE IS TROUBLED BY THE ARBITRARY LIMIT ON HOW MUCH THE LAWYERS CAN BE PAID HE SAYS 350 PER HOUR IS ALSO A LEGITIMATE FEE AND IN THE END THE DIFFERENCE BETWEEN 350 AND 250 IS NOT THAT GREAT A FEDERAL JUDGE IN NEW YORK RULED THAT EMPLOYEES HAVE ONLY SIX MONTHS TO BRING CLAIMS FOR COMPENSATION UNDER THE FEDERAL PLANTCLOSING NOTIFICATION LAW THE RULING BELIEVED TO BE THE FIRST IN THE COUNTRY IS SIGNIFICANT BECAUSE PLANT CLOSINGS FREQUENTLY ARE FOLLOWED BY FILINGS FOR FINANCIAL REORGANIZATION AND PROTECTION FROM CREDITORS UNDER FEDERAL BANKRUPTCY LAWS THE PRACTICAL EFFECT OF THE RULING WOULD REQUIRE EMPLOYEES IN SUCH CIRCUMSTANCES TO FILE THEIR CLAIMS IN BANKRUPTCY COURT WHERE THEIR PROSPECTS FOR RECOVERY WOULD BE UNCERTAIN THE LAW ADOPTED IN 1988 REQUIRES COMPANIES TO GIVE 60 DAYS' NOTICE BEFORE SHUTTING DOWN A PLANT THE LAWSUIT WAS BROUGHT BY A UNION FOR WORKERS AT IMPERIAL NEWS CO A FORMER MAGAZINEDISTRIBUTION OPERATION IN MELVILLE NY THAT WAS A SUBSIDIARY OF UNITED MAGAZINE CO IMPERIAL SHUT DOWN IN JANUARY 1991 SOLD ITS ASSETS TO ANOTHER COMPANY AND FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AT ISSUE IS ABOUT 1 MILLION IN VACATION SEVERANCE AND SICK PAY THAT THE UNION CONTENDS ITS MEMBERS ARE OWED AS WELL AS 60 DAYS IN LOST SALARY THAT EMPLOYEES ARE ENTITLED TO UNDER THE WORKER ADJUSTMENT AND RETRAINING ACT OF 1988 WHEN PLANTS ARE SHUT DOWN WITHOUT ADEQUATE NOTICE THE 1988 LAW HOWEVER DOESN'T PROVIDE A TIME LIMIT FOR FILING CLAIMS FOR COMPENSATION AND THE UNION'S SUIT WAS FILED MORE THAN A YEAR AFTER THE CLOSING THE LEGAL QUESTION FOR JUDGE ARTHUR D SPATT PRESIDING OVER THE CASE IN FEDERAL COURT IN UNIONDALE WAS WHETHER TO RELY ON STATE LAW OR FEDERAL LAW TO DETERMINE THE PROPER TIME LIMIT NEW YORK STATE LAW WOULD HAVE ALLOWED SIX YEARS BUT JUDGE SPATT FOLLOWING FEDERAL LAW UNDER THE NATIONAL LABOR RELATIONS ACT RULED THAT SIX MONTHS IS THE PROPER LIMIT THE RULING VOIDS THE UNION'S CLAIMS FOR COMPENSATION UNDER THE RETRAINING ACT THE UNION'S ATTORNEY J WARREN MANGAN A LABOR LAWYER WITH THE LONG ISLAND CITY LAW FIRM OF O'CONNOR & MANGAN SAID THAT SUING WITHIN SIX MONTHS WOULD HAVE LANDED THE UNION IN IMPERIAL'S BANKRUPTCY PROCEEDINGS HE ALSO SAID IT TOOK A YEAR TO UNRAVEL FINANCIAL CONNECTIONS BETWEEN IMPERIAL ITS PARENT AND THE COMPANY THAT ULTIMATELY BOUGHT IMPERIAL'S ASSETS THE DECISION IS BEING APPEALED NEWSPAPER AND MAIL DELIVERERS' UNION ET AL VS UNITED MAGAZINE CO US DISTRICT COURT ET AL EASTERN DISTRICT OF NEW YORK 92 CV 0449 LABOR LAW BOOM MUDGE ROSE GUTHRIE ALEXANDER & FERDON EXPANDED ITS EMPLOYMENTLAW GROUP IN EXPECTATION OF MORE LABORLAW WORK UNDER THE CLINTON ADMINISTRATION THE 300LAWYER NEW YORK FIRM ADDED FOUR ATTORNEYS TO THE GROUP INCREASING ITS SIZE TO NINE THE GROUP INCLUDES NEW PARTNERS NED H BASSEN AND JOEL E COHEN FORMERLY OF THE NEW YORK LAW FIRM KELLEY DRYE & WARREN EVERYBODY IS ANTICIPATING AN INCREASED LEVEL OF ENFORCEMENT OF LABOR LAW SAID GARY FIEBERT MUDGE ROSE CHIEF OPERATIONS OFFICER MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9301110127 930111 PLAN FOR CALIFORNIA NUCLEAR WASTE DUMP POINTS TO PROBLEMS WITH FEDERAL POLICY BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL THE FLAREUP OF A SMOLDERING CONTROVERSY OVER A CALIFORNIA NUCLEAR WASTE DUMP PROVIDES FRESH EVIDENCE THAT THE GOVERNMENT'S APPROACH TO COPING WITH RADIOACTIVE LEFTOVERS IS DISINTEGRATING LATE LAST WEEK INTERIOR SECRETARY MANUEL LUJAN SAID HE PLANS TO TRANSFER OWNERSHIP OF A PATCH OF FEDERALLY OWNED DESERT IN SOUTHERN CALIFORNIA TO THE STATE THE LAND TRANSFER PREVIOUSLY STALLED BY ENVIRONMENTAL CHALLENGES WOULD BE A STEP FORWARD IN A MUCHCRITICIZED PROPOSAL TO BUILD A DUMP FOR LOWLEVEL NUCLEAR WASTE AT THE SITE KNOWN AS WARD'S VALLEY ON JAN 5 CALIFORNIA'S REPUBLICAN GOV PETE WILSON A STRONG PROPONENT OF THE DUMP MADE A PERSONAL PLEA TO MR LUJAN TO PUSH THROUGH THE TRANSFER MR LUJAN'S ACTION INFURIATES ENVIRONMENTALISTS WHO SEE IT AS AN END RUN AROUND NORMAL PROCEDURE DESIGNED TO ADVANCE THE PROJECT BEFORE PRESIDENTELECT CLINTON TAKES OVER A CHARGE THAT BOTH THE SECRETARY AND GOV WILSON DENY ON ANOTHER LEVEL THE FLAP OVER WARD'S VALLEY HIGHLIGHTS HOW BADLY US POLICY FOR HANDLING LOWLEVEL NUCLEAR WASTE HAS CAREENED OFF TRACK THE PROBLEM DATES BACK TO 1980 WHEN CONGRESS PASSED A LAW REQUIRING STATES TO EITHER SET UP THEIR OWN LOWLEVEL NUCLEAR WASTE DUMPS OR ENTER MULTISTATE COMPACTS TO SHARE ONE DUMP LOWLEVEL WASTE INCLUDES SUCH ITEMS AS CONTAMINATED MEDICAL GOWNS WHICH HAVE RELATIVELY SHORTLIVED RADIOACTIVITY HOWEVER THE LAW ALSO DEFINED MORE POTENT FORMS AS LOWLEVEL SUCH AS CERTAIN NUCLEAR POWER PLANT WASTES THE LAW DESIGNED TO INCREASE DUMP CAPACITY ALSO ADDRESSED COMPLAINTS FROM SOME STATES SUCH AS NEVADA THAT THEY WERE BECOMING DUMPING GROUNDS FOR ALMOST ALL OF THE NATION'S RADIOACTIVE CASTAWAYS UNDER DEADLINES SET BY CONGRESS EACH STATE OR STATE COMPACT WAS SUPPOSED TO HAVE AN OPERATING LOWLEVEL WASTE DUMP BY JAN 1 1993 BUT NO STATE IS EVEN CLOSE MAINLY BECAUSE CONGRESS UNDERESTIMATED PUBLIC OPPOSITION MOREOVER THE WASTE MANAGEMENT INDUSTRY WHICH IS SUPPOSED TO CONSTRUCT AND OPERATE NEW DUMPS HAS BEEN PLAGUED BY DESIGN PROBLEMS AND A RECORD THAT INCLUDES SOME HORRENDOUS PRACTICES AT OLD LOWLEVEL NUCLEAR WASTE DUMPS SEVERAL OF WHICH ARE AWASH IN RADIOACTIVE CONTAMINATION LAST YEAR THE US SUPREME COURT THREW OUT ONE OF THE FEDERAL LAW'S KEY CLAUSES A PROVISION REQUIRING STATES TO ASSUME OWNERSHIP AND THUS LIABILITY FOR THE WASTES THAT ACTION CAST A CLOUD OVER THE ENTIRE STATUTE MEANWHILE LOWLEVEL WASTES ARE PILING UP AND COSTS OF STORING THEM AT THE HANDFUL OF OLD DUMPS THAT EXISTED BEFORE CONGRESS PASSED THE LAW ARE SKYROCKETING A FACILITY IN BARNWELL SC ALMOST THE ONLY DUMP NOW ACCEPTING SUBSTANTIAL AMOUNTS OF WASTES JUST INCREASED ITS FEES TO MORE THAN 250 A TON FROM 80 THOSE ESCALATING COSTS BORNE BY NUCLEAR POWER PLANT OPERATORS HOSPITALS AND RESEARCH INSTITUTIONS FOR EXAMPLE CAN GENERALLY BE EXPECTED TO BE PASSED ON TO CUSTOMERS FEDERAL POLICY ON LOWLEVEL WASTE IS A MESS THE PROCESS IS COLLAPSING SAYS MARTIN GELFAND RESEARCH DIRECTOR FOR THE SAFE ENERGY COMMUNICATION COUNCIL AN ENVIRONMENTAL COALITION WARD'S VALLEY OFFERS ELOQUENT TESTIMONY TO THAT BELIEF IT WAS FIRST PROPOSED AS A SITE IN 1982 US ECOLOGY INC A HOUSTON WASTE MANAGEMENT CONCERN OWNED BY AMERICAN ECOLOGY CORP WAS SELECTED TO BUILD THE DUMP THE SITE SITS ONLY 20 MILES FROM THE COLORADO RIVER AND IS PERCHED ABOVE A SIZEABLE ACQUIFER DUMP OPPONENTS INCLUDING SEVERAL NUCLEAR SCIENTISTS ARGUE THAT THE RISK OF CONTAMINATION TO THE RIVER A VITAL WATER ARTERY IS TOO GREAT LED BY GOV WILSON CALIFORNIA SUPPORTS THE PROJECT AS THE BEST WAY TO COMPLY WITH FEDERAL LAW THE STATE AND US ECOLOGY INSIST THE DESIGN IS SAFE BUT US ECOLOGY'S SAFETY RECORD STIRS CONCERN AMONG OPPONENTS DUMPS THE COMPANY OPERATED IN THE 1960S AND 1970S IN KENTUCKY AND ILLINOIS LEAKED RADIOACTIVITY IN FACT THE KENTUCKY DUMP KNOWN AS MAXEY FLATS IS NOW A SUPERFUND SITE MEANING THE GOVERNMENT HAS DESIGNATED IT ONE OF THE MOST POLLUTED SITES IN THE COUNTRY CITING ENVIRONMENTAL CHALLENGES FACING THE INDUSTRY STEVE ROMANO US ECOLOGY'S SENIOR VICE PRESIDENT OBSERVES IT'S GETTING IMPOSSIBLE TO BUILD THESE FACILITIES YOU TELL ME WHERE ELSE IS THIS STUFF GOING TO GO 9301110126 930111 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN LENDING BY JAPAN'S 11 MAJOR COMMERCIAL BANKS LAST YEAR GREW JUST 21 FROM A YEAR EARLIER MARKING THE SMALLEST INCREASE SINCE 1954 WHEN THE BANKING INDUSTRY BEGAN KEEPING THESE RECORDS LOANS OUTSTANDING AT DEC 31 TOTALED 223505 TRILLION YEN 1784 TRILLION THE FEDERATION OF BANKERS ASSOCIATIONS OF JAPAN SAID THE GROUP ATTRIBUTED THE DISMAL GROWTH TO SLUGGISH DEMAND FOR FUNDS FROM COMPANIES AND INDIVIDUALS BUT ANALYSTS ALSO BLAMED THE BANKS' RELUCTANCE TO LEND GIVEN PROBLEM LOANS GALORE STEMMING FROM JAPAN'S ECONOMIC SLOWDOWN STILL THE DATA SIGNALED A LENDING REVIVAL LOANS ROSE 13 IN DECEMBER THE FIRST MONTH SINCE JUNE 1991 IN WHICH GROWTH EXCEEDED 1 AND THE FASTEST PACE SINCE THE 17 RISE IN JUNE 1990 THE ASSOCIATION ALSO SAID DEPOSITS AT THE 11 COMMERCIAL BANKS LAST YEAR TUMBLED 67 TO 184053 TRILLION YEN FROM 1991 THE SHARPEST DECLINE SINCE 1954 THE EUROPEAN COMMUNITY SIGNED LOAN AGREEMENTS TOTALING 120 MILLION EUROPEAN CURRENCY UNITS 1437 MILLION WITH LATVIA AND ESTONIA TO PROMOTE ECONOMIC REFORM IN THE BALTIC STATES THE EC COMMENDED BOTH NATIONS FOR THEIR ECONOMIC STABILIZATION AND REFORM MEASURES AND URGED THEM TO CONTINUE RESTRUCTURING AND SELLING OFF STATE ENTERPRISES THE LOAN TO LATVIA OF 80 MILLION ECUS IS PART OF A 200 MILLION PLEDGE BY 24 INDUSTRIALIZED NATIONS THAT HAVE BEEN FUNNELING MONEY TO EASTERN EUROPEAN COUNTRIES TO HELP REVIVE THEIR ECONOMIES THE EC LOAN TO ESTONIA OF AS MUCH AS 40 MILLION ECUS IS PART OF THE GROUP'S 100 MILLION PACKAGE FOR THAT REPUBLIC JAPAN SHOULD OPEN WIDE THE GATES TO ITS FORTRESS MARKET SONY CORP CHAIRMAN AKIO MORITA SAID AT A MALAYSIAN CONFERENCE ON EAST ASIA THE JAPANESE MARKET MAY NOT BE AS CLOSED AS SOME CLAIM BUT IT IS CERTAINLY NOT AS OPEN AS IT CAN BE HE SAID JAPAN AND THE US SHOULD COOPERATE TO CREATE A GLOBAL FREE MARKET HE SAID NOTING THAT JAPAN HAS BEEN ONE OF THE WORLD'S BIGGEST BENEFICIARIES OF THE FREETRADE SYSTEM AND THAT ITS SUCCESS BRINGS OBLIGATIONS TO HELP OTHER ECONOMIES SINGAPORE WITH AN ECONOMY RELIANT ON MULTINATIONAL CORPORATIONS WILL REVIEW TAX RULES AND INCENTIVES TO HELP COMPANIES EXPAND REGIONALLY AND TO ENCOURAGE GROWTH OF ENTREPRENEURSHIP THE GOVERNMENT INTENDS TO REMOVE OR CHANGE OBSTACLES TO OVERSEAS INVESTMENT HELP FIRMS PURSUE OPPORTUNITIES ABROAD AND DOUBLE TAX DEDUCTIONS FOR EXPENSES FOR THOSE ACTIVITIES IT ALSO WILL CONSIDER CUTTING CORPORATE AND PERSONAL INCOME TAX RATES OFFICIALS HAVE EXPRESSED ANXIETY THAT BARRIERS IN SINGAPORE PUT IT AT RISK OF TRAILING OTHER FASTGROWING EAST ASIAN ECONOMIES BANKRUPTCY CASES IN SWEDEN LAST YEAR JUMPED 22 TO A RECORD 22442 FROM 18391 A YEAR EARLIER OF THE TOTAL CORPORATIONS ACCOUNTED FOR 73 AND LIMITED PARTNERSHIPS AND NONINCORPORATED ENTERPRISES 10 EACH SAID THE UPPLYSNINGSCENTRALEN CREDIT AGENCY WHICH IS OWNED BY A SWEDISH BANKING CONSORTIUM DESPITE THE RECORD TOTAL THE 22 RISE REPRESENTED A SIGNIFICANT SLOWING FROM THE RATE IN 1991 WHEN FAILURES SOARED 74 FROM 10586 IN 1990 THE HUNGARIAN CURRENCY WON'T BE FULLY CONVERTIBLE FO AT LEAST TWO YEARS FINANCE MINISTER MIHALY KUPA SAID FULL CONVERTIBILITY ALLOWING HUNGARIANS TO INVEST ABROAD PREVIOUSLY HAD BEEN EXPECTED BY LATE THIS YEAR MR KUPA SAID CONTROLS ON MONEY TRANSFERS OUT OF HUNGARY WILL BE EASED FOR ESTABLISHMENT OF JOINT VENTURES THE HUNGARIAN FORINT IS PRACTICALLY CONVERTIBLE FOR FOREIGN INVESTORS WHO ALREADY MAY REPATRIATE PROFITS IN HARD CURRENCY GERMAN CHANCELLOR HELMUT KOHL INDICATED HIS GOVERNMENT WON'T CAVE IN TO PAY DEMANDS BY PUBLICSECTOR UNIONS NEGOTIATIONS WHICH OPENED FRIDAY LASTED SEVEN HOURS WITHOUT ANY NARROWING OF POSITIONS MR KOHL SAID THE HARDLINE STANCE IS NECESSARY BECAUSE GERMANY FACES DRASTIC BUDGET CUTS AS IT FIGHTS INFLATION AND TRIES TO MAINTAIN THE STRENGTH OF ITS CURRENCY WHILE THE ECONOMY IS STAGNATING IN THE TALKS ON A WAGE PACKAGE FOR 23 MILLION WESTERN GERMAN GOVERNMENT EMPLOYEES UNIONS SOUGHT INCREASES OF BETWEEN 5 AND 55 THE GOVERNMENT COUNTERED WITH 225 BREAKING PRECEDENT WITH THE TRADITIONAL DELAY IN MAKING AN OFFER UNTIL THE SECOND OR THIRD ROUND OF TALKS NEGOTIATIONS ARE TO RESUME JAN 22 THIS YEAR'S NEGOTIATIONS ARE EXPECTED TO PROCEED QUICKLY PRODDED BY MOUNTING EVIDENCE OF GERMANY'S DETERIORATING ECONOMIC CONDITIONS THE GOVERNMENT WANTS A SETTLEMENT BELOW THE INFLATION RATE AS PART OF ITS EFFORTS TO AFFORD FINANCING OF EASTERN GERMAN RECONSTRUCTION CHO SOON SOUTH KOREA'S CENTRAL BANK GOVERNOR DROPPED A LIBEL SUIT AGAINST CHUNG JU YUNG HEAD OF THE UNITED PEOPLE'S PARTY AFTER THE FORMER HYUNDAI GROUP CHAIRMAN APOLOGIZED FOR HIS ASSERTION THAT THE BANK OF KOREA PRINTED 300 BILLION WON 3792 MILLION FOR LAST MONTH'S SUCCESSFUL PRESIDENTIAL CAMPAIGN BY RULING PARTY CANDIDATE KIM YOUNG SAM MALAYSIA'S CABINET APPROVED DOUBLING TO SIX THE COUNTRY'S TELEVISION CHANNELS NEXT YEAR OF THE THREE NEW STATIONS TWO WOULD OFFER SUBSCRIPTION SERVICES THE GOVERNMENT NOW OWNS TWO TV STATIONS AND THE RULING POLITICAL PARTY THE THIRD OUTLET 9301110125 930111 CREDITORS ARE SET TO DISMANTLE OLYMPIA & YORK DEBT RESTRUCTURING VOTE COULD FREE REICHMANNS FROM FURTHER LIABILITY BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CREDITORS TO OLYMPIA & YORK DEVELOPMENTS LTD ARE EXPECTED THIS WEEK TO BEGIN DISMANTLING THE INSOLVENT REALESTATE CONCERN AS THEY VOTE ON A RESTRUCTURING PLAN THAT FREES THE REICHMANN FAMILY O&Y'S CURRENT OWNERS FROM FURTHER LIABILITY FOR THE COMPANY'S DEBT FROM TODAY TO FRIDAY NEARLY THREE DOZEN CLASSES OF LENDERS WILL VOTE AT SEPARATE MEETINGS ON THE PLAN WHICH IS AIMED AT RESTRUCTURING SOME 7 BILLION IN DEBT RELATED TO O&Y'S CANADIAN OPERATIONS AT LEAST TWO CREDITOR GROUPS SAY THEY WILL REJECT THE PLAN AND INSTEAD SEIZE THE COMPANY'S OFFICE TOWERS THAT SECURE THEIR LOANS O&Y HAS OPERATED UNDER CANADIAN BANKRUPTCYCOURT PROTECTION SINCE MAY IT'S CERTAINLY TO OUR BENEFIT TO TAKE TITLE SAID ONE OF THE HOLDERS OF A 370 MILLION BOND ISSUE SECURED BY TORONTO'S FIRST CANADIAN PLACE LONG CONSIDERED O&Y'S FLAGSHIP PROPERTY IF THE BONDHOLDERS WERE TO LEAVE THE BUILDING WITHIN O&Y THEY COULD LOSE MUCH OF THEIR INVESTMENT SHOULD PROPERTY PRICES FALL FURTHER THE CREDITOR SAID BUT IF THE TOWER APPRECIATES IN VALUE THE LENDERS WOULDN'T RECEIVE MORE THAN THEIR ORIGINAL INVESTMENT THE RISKS ARE INCREASED NOW I THINK YOU COULD ARGUE THAT THE BONDHOLDERS ARE ENTITLED TO SOMETHING MORE THAN WHAT THEY WENT IN FOR HE SAID UNDER O&Y'S PLAN SECURED CREDITORS WOULD BE ALLOWED TO TAKE POSSESSION AT ANYTIME OF THE ASSETS SECURING THEIR LOANS AFTER GIVING 30 DAYS' NOTICE BUT A MOVE TO SEIZE BUILDINGS AS SOON AS THIS WEEK WOULD REPRESENT A FURTHER DEFEAT FOR O&Y WHICH HAS TRIED TO DELAY SUCH ACTIONS IN THE HOPE THAT REALESTATE MARKETS EVENTUALLY WILL IMPROVE AND LENDERS CAN BE REPAID LATE LAST WEEK THE COMPANY WAS STILL NEGOTIATING NEW TERMS IN ORDER TO WIN BACKING FROM CREDITORS TO ITS EXCHANGE TOWER AND SCOTIA PLAZA PROPERTIES IN TORONTO A VOTE AGAINST THE PLAN BY ANY OF THE SECURED CREDITOR GROUPS WOULDN'T DEFEAT THE PROPOSED RESTRUCTURING HOWEVER O&Y MUST OBTAIN THE APPROVAL OF ITS BIG UNSECURED CREDITOR CLASS AT A MEETING SCHEDULED FOR FRIDAY BECAUSE THIS GROUP'S CLAIMS ARE AGAINST THE COMPANY AND NOT AGAINST SPECIFIC ASSETS UNDER O&Y'S PLAN UNSECURED LENDERS WOULD HAVE FIRST SAY OVER WHATEVER VALUE IF ANY IS LEFT IN THE COMPANY AFTER THE SECURED CLAIMS ARE SATISFIED O&Y ALSO IS IN DEFAULT ON A NUMBER OF LOANS TIED TO ITS US PROPERTIES AND IT CONTINUES TO NEGOTIATE WITH CREDITORS TO RESTRUCTURE THESE OPERATIONS WITHOUT PASSING THROUGH US BANKRUPTCY COURT O&Y OFFICIALS SEEM RESIGNED TO THE LIKELY LOSS OF A NUMBER OF THEIR PRIZE CANADIAN REALESTATE HOLDINGS PRIVATELY THEY ADMIT THAT CREDITORS LIKELY WILL TAKE POSSESSION OF MORE OF THE COMPANY'S BUILDINGS IN THE FUTURE ALTHOUGH O&Y EXPECTS TO BE KEPT ON TO MANAGE MANY OF THESE PROPERTIES ANTICIPATING A DIMINISHED ROLE AS A PROPERTY MANAGER O&Y ONCE NORTH AMERICA'S LARGEST PRIVATE REALESTATE DEVELOPER ALREADY HAS DISMISSED DOZENS OF ITS HEAD OFFICE STAFF AND VACATED NEARLY HALF ITS OFFICE SPACE IN DOWNTOWN TORONTO FOR THE REICHMANNS APPROVAL OF THE RESTRUCTURING PLAN ALTHOUGH IT VIRTUALLY SURRENDERS THEIR COMPANY TO ITS CREDITORS WOULD ALLOW THE FAMILY TO GET ON WITH NEW BUSINESS VENTURES AND LEAVE O&Y'S FAILINGS BEHIND THE COMPANY IS ASKING ITS CREDITORS TO RELEASE THE FAMILY FROM FUTURE LIABILITY RELATED IN PART TO PURCHASES BY THE REICHMANNS OF O&Y ASSETS OVER THE PAST TWO YEARS THESE ASSETS WHICH INCLUDE A DECORATIVE TILE BUSINESS AND SEVERAL RETAIL AND OFFICE PROPERTIES IN TORONTO AND OTHER CANADIAN CITIES REPRESENT THE LION'S SHARE OF THE FAMILY'S HOLDINGS A SPOKESMAN FOR THE REICHMANNS HAS SAID BEFORE AGREEING TO THESE RELEASES HOWEVER UNSECURED CREDITORS WANT GREATER ASSURANCES THAT THE REICHMANNS PAID VALID MARKET PRICES FOR THE HOLDINGS THEY BOUGHT FROM O&Y ANOTHER GROUP OF CREDITORS THAT IS EXPECTED TO REJECT THE COMPANY'S PLAN AND SEIZE ITS SECURITY ARE HOLDERS OF A 115 MILLION BOND ISSUE BACKED BY A FIRST MORTGAGE ON FIFTH AVENUE PLACE A TWIN TOWER COMPLEX IN CALGARY ALBERTA UNDER O&Y'S PROPOSAL THE BUILDINGS WERE TO HAVE BEEN TURNED OVER TO INVESTORS HOLDING A JUNIOR MORTGAGE ON THE PROPERTY AN ARRANGEMENT BONDHOLDERS SAY IS UNACCEPTABLE WE WILL LOOK FOR A BUYER BUT I THINK THE BONDHOLDERS WILL HAVE TO KEEP THIS BUILDING FOR A NUMBER OF YEARS UNTIL PROPERTY VALUES RISE A BONDHOLDER SAID CREDITORS TO FIRST CANADIAN PLACE IN TORONTO ALSO EXPECT TO HOLD THEIR BUILDING FOR SEVERAL YEARS BEFORE THEY CAN GET A REASONABLE RETURN ON THEIR INVESTMENT O&Y ALSO IS EXPECTED TO LOSE TITLE TO OTHER BUILDINGS AS A RESULT OF NEGOTIATIONS WITH CREDITORS WHEN DEBT RESTRUCTURING AGREEMENTS COULDN'T BE REACHED UNDER THE COMPANY'S PLAN INSTITUTIONAL INVESTORS HOLDING 155 MILLION IN NOTES WOULD TAKE POSSESSION OF GULF CANADA SQUARE IN CALGARY ALSO TORONTO'S AETNA CANADA CENTRE ALREADY HAS BEEN TRANSFERRED TO PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ WHICH HELD A 155 MILLION MORTGAGE ON THE BUILDING 9301110124 930111 LETTERS TO THE EDITOR THE COMMON SENSE OF MALCOLM X MARK PETERSON EDITOR OF ENFORM MAGAZINE MADE A NUMBER OF STATEMENTS THAT I MUST TAKE ISSUE WITH IN HIS DEC 7 LETTER RESPONDING TO KEVIN PRITCHETT'S NOV 10 EDITORIAL PAGE ARTICLE MALCOLM X CONSERVATIVE HERO FIRST MOST BLACK CONSERVATIVES WOULD HARDLY CONSIDER PRESIDENT BUSH THE LEADER OF THEIR MOVEMENT NOR ARE THEY CONSERVATIVES IN THE TRADITIONAL MEANING OF THE TERM MOST YOUNG CONSERVATIVES BLACK OR WHITE ARE ACTUALLY CLASSICAL LIBERALS THEY WANT THE LIMITED GOVERNMENT OUR FOUNDING FATHERS INTENDED US TO HAVE THEY BELIEVE IN FREEDOM FREEDOM FROM GOVERNMENT AND FROM OPPRESSIVE TAXATION THIS MEANS THE OPPORTUNITY TO SUCCEED AND YES THE POSSIBILITY OF FAILURE UNFORTUNATELY THIS IS NOT NECESSARILY THE STATUS QUO MODERN CONSERVATIVES WANT AN EDUCATIONAL SYSTEM THAT TEACHES CHILDREN THE SKILLS THEY NEED TO COMPETE IN TODAY'S WORLD RATHER THAN INDOCTRINATING THEM THEY WANT A CRIMINAL JUSTICE SYSTEM THAT METES OUT PROPER PUNISHMENT TO LAWBREAKERS IF THESE CONSERVATIVES ARE CONSERVATIVE IN THE CLASSICAL SENSE IT IS FOR THESE REASONS AND IN THE SAME WAYS MR PETERSON SAYS MALCOLM X WAS IN TERMS OF THE TRADITIONAL MORAL AND SOCIAL VALUES THAT ARE DERIVED FROM RELIGION BE IT ISLAM CHRISTIANITY OR JUDAISM THIS TYPE OF PERSON CLEARLY DOES NOT BELIEVE IN THE REDISTRIBUTION OF WEALTH FROM THOSE WHO WORK TO THOSE WHO DO NOT AS MR PETERSON DOES THIS TYPE OF SOCIAL ENGINEERING HAS NOT WORKED IN OTHER COUNTRIES AND IT WON'T WORK HERE EITHER THE SELFEMPOWERMENT JACK KEMP AND THE BLACK CONSERVATIVES SPEAK OF IS ONLY NOMINALLY ABOUT GHETTOBOUND PEOPLE GAINING CONTROL OF THE PROJECTS THEY RESIDE IN OR BUYING THEIR OWN UNITS HOWEVER DESPITE MR PETERSON'S SNEERING AT THIS CONCEPT A PERSON AT THE BOTTOM RUNG OF THE LADDER HAS TO START SOMEWHERE THE MAIN THRUST OF THE BLACK CONSERVATIVE MOVEMENT IS TO ENCOURAGE DISADVANTAGED BLACKS TO FOLLOW THE CLASSICAL PATTERNS OF SELFHELP DEMONSTRATED BY SO MANY RECENT IMMIGRANTS FROM ASIA THIS MEANS BANDING TOGETHER POOLING RESOURCES AND STARTING BUSINESSES THEREBY CREATING JOBS AND IN TURN PROSPERITY THIS IS EXACTLY THE TYPE OF EMPOWERMENT MALCOLM X VISUALIZED WHEN BLACK FAMILIES ARE INTACT THERE IS LITTLE INCOME DIFFERENTIAL BETWEEN BLACKS AND WHITES AND THE GAP IS NARROWING IN QUEENS NEW YORK BLACKS HAVE REACHED ECONOMIC PARITY WITH WHITES WHEN ANY FAMILY IS CLOSEKNIT AND IMPRESSES UPON ITS CHILDREN THE VALUE OF EDUCATION AND HARD WORK SUCCESS IS ATTAINABLE BLACK AMERICANS WHO HAVE FOLLOWED THIS FORMULA HAVE JOINED THE MIDDLE AND UPPER CLASSES IN RECORD NUMBERS IN RECENT YEARS ARGUING WHICH INTELLECTUAL MOVEMENT HAS THE RIGHT TO CLAIM MALCOLM X'S MANTLE IS JUST IDLE SPECULATION CLEARLY MUCH OF WHAT HE SAID WAS SENSIBLE TAKEN IN PROPER CONTEXT HOWEVER THE AFROCENTRISTS ARE DEAD WRONG WHEN THEY CLAIM THAT YOUNG BLACK PEOPLE CAN DEVELOP A SENSE OF PRIDE AND SELFWORTH ONLY FROM EXPOSURE TO HISTORICAL FIGURES OR THROUGH THE GLORY OF SOME GREAT ANCIENT PANAFRICAN SOCIETY CREATED OUT OF WHOLE CLOTH NO THE TRUTH IS THAT YOUNG PEOPLE GAIN PRIDE AND SELFCONFIDENCE FROM THEIR OWN ACCOMPLISHMENTS AND THE IMPETUS FOR THIS BEGINS AT HOME WHAT DISADVANTAGED BLACKS NEED NOW ARE A NEW GROUP OF LEADERS WHO PREACH OPPORTUNITY AND POSSIBILITY RATHER THAN SEEING THEMSELVES AND EVERY BLACK AS VICTIMS THIS SELFINDUCED PARALYSIS IS DIRECTLY RESPONSIBLE FOR KEEPING FAR TOO MANY BLACKS IN THE UNDERCLASS AND DEPENDENT ON TRADITIONAL LIBERAL SOCIAL PROGRAMS DEPENDENCY ON WHITE LIBERALS AND THEIR PROGRAMS WAS SOMETHING MALCOLM X STRIDENTLY OPPOSED IT CONTINUES TO BE MORE DIFFICULT FOR MANY BLACKS TO SUCCEED IN OUR SOCIETY BUT OFTEN THESE BARRIERS ARE NOT RACIAL BUT ECONOMIC IT ISN'T EASY FOR A DIRT POOR SOUTHERN WHITE FROM A BROKEN HOME TO GET AHEAD EITHER RACISM HASN'T BEEN VANQUISHED AND BECAUSE OUR SOCIETY IS HETEROGENEOUS IT PROBABLY NEVER WILL BE BUT LIFE IS GRADUALLY IMPROVING FOR MOST BLACK AMERICANS DESPITE THE RHETORIC OF RABBLE ROUSERS LIKE MAXINE WATERS AND SPIKE LEE AS MORE BLACKS LEARN THE ROPES OF SUCCESS THEY TOO WILL SUCCEED IF MALCOLM X'S MAIN MESSAGE WAS TO RESPECT EACH OTHER AND TO STRESS EDUCATION INDIVIDUAL ACCOMPLISHMENT MORAL BEHAVIOR AND POSITIVE SOCIAL VALUES IN ORDER TO GRAB A PIECE OF THE AMERICAN DREAM HIS LEGACY WAS ONE THAT WE ALL CAN SHARE 9301110123 930111 MARKETING & MEDIA TANDY UNVEILS MAJOR OVERHAUL OF OPERATIONS COMPANY PLANS TO SPIN OFF MANUFACTURING BUSINESS EXPAND ITS SUPERSTORES BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS APPARENTLY BETTING THAT SUPERSTORES ARE THE FUTURE OF CONSUMER ELECTRONICS RETAILING TANDY CORP ANNOUNCED A MAJOR CORPORATE OVERHAUL THE CHANGES INCLUDE EXPANDING THE COMPANY'S INCREDIBLE UNIVERSE AND COMPUTER CITY STORE OPERATIONS CLOSING 100 SMALLER NAMEBRAND ELECTRONICS STORES AND SPINNING OFF MANUFACTURING OPERATIONS INTO A NEW COMPANY TE ELECTRONICS INC THE COMPANY SAID THE RESTRUCTURING PLAN HAS BEEN APPROVED IN PRINCIPLE BY TANDY'S BOARD BUT THAT THE PROPOSED SPINOFF WHICH IS INTENDED TO BE A TAXFREE DIVIDEND TO SHAREHOLDERS REMAINS SUBJECT TO FINAL BOARD APPROVAL THE COMPLETION OF CERTAIN SECURITIES AND EXCHANGE COMMISSION FILINGS AND OTHER CONTINGENCIES IN CONNECTION WITH THE PROPOSED RESTRUCTURING TANDY SAID IT WOULD RECORD A 475 MILLION CHARGE AGAINST PRETAX EARNINGS AS OF DEC 31 1992 AND THAT TE ELECTRONICS EXPECTS TO RECORD A SIMILAR CHARGE TOTALING 20 MILLION JOHN V ROACH TANDY CHIEF EXECUTIVE OFFICER SAID THE SPLIT WOULD ALLOW TANDY TO BROADEN ITS PRODUCT LINE AND FOCUS ON NEW RETAILING CONCEPTS WHILE PERMITTING THE MANUFACTURING OPERATION TO EXPAND ITS CUSTOMER BASE AND ESTABLISH MORE STRATEGIC ALLIANCES FOR NEW PRODUCT DEVELOPMENT SEPARATION HAS THE POTENTIAL TO IMPROVE THE PROFITABILITY OF THE COMPANIES HE SAID THE MOVE ANNOUNCED YESTERDAY IS THE LATEST IN A SERIES OF MANEUVERS BY THE HUGE ELECTRONICS MANUFACTURER AND RETAILER TO COUNTER LACKLUSTER SALES GROWTH AT ITS FLAGSHIP 7000STORE RADIO SHACK CHAIN WHICH IS LARGELY UNAFFECTED BY THE RESTRUCTUR ING WHILE STIFF COMPETITION AND RAZORTHIN PROFIT MARGINS HAVE ALREADY BATTERED OTHER SUPERSTORE RETAILERS INDUSTRY ANALYSTS RESPONDED FAVORABLY TO TANDY'S ANNOUNCEMENT I THINK IT'S A POSITIVE MOVE SAID DENNIS TELZROW AN ANALYST WITH PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS IN ADDITION TO GIVING THE MANUFACTURING OPERATION THE OPPORTUNITY TO SELL TO OTHER RETAILERS HE SAID TANDY'S RETAIL SIDE WOULD BE FREED FROM THE NECESSITY OF SUPPORTING THE MANUFACTURING OPERATIONS I THINK IT GIVES THEM AN OPPORTUNITY TO PUT ANOTHER PRODUCT IN THERE IF THEY DESIRE HE SAID CITING WHAT IT CALLED THE EXCELLENT SALES PERFORMANCE OF THE TWO INCREDIBLE UNIVERSE OUTLETS THAT IT OPENED IN THE FALL IN ARLINGTON TEXAS AND PORTLAND OREGON THE COMPANY SAID IT PLANS TO OPEN SEVERAL MORE OF THE 160000SQUAREFOOT MEGASTORES THE STORES OFFER EVERYTHING FROM PERSONAL COMPUTERS TO WASHING MACHINES ALONG WITH SUCH AMENITIES AS BABYSITTERS AND KARAOKE MACHINES ALTHOUGH TANDY DIDN'T OFFER SPECIFICS SOME ANALYSTS SAID THEY EXPECTED RAPID EXPANSION I THINK THERE ARE GOING TO BE FOUR OR FIVE MORE STORES VERY QUICKLY SAID WALTER LOEB A NEW YORK RETAIL CONSULTANT MEANWHILE TANDY SAID IT WILL OPEN 32 NEW COMPUTER CITY STORES OVER THE NEXT TWO YEARS INCREASING TO 50 THE TOTAL NUMBER OF ITS 25000SQUAREFOOT COMPUTER RETAIL STORES SET FOR CLOSING ARE 100 OF 413 STORES OPERATED BY THE TANDY NAME BRAND GROUP UNIT WHICH DO BUSINESS UNDER THE MCDUFF AND VIDEO CONCEPTS NAMES AND HAVE BEEN STRUGGLING AGAINST STIFF COMPETITION FROM DISCOUNT RETAILERS SUCH AS CIRCUIT CITY STORES INC AND BEST BUY CO A COMPANY SPOKESMAN SAID MOST OF THE STORES SLATED FOR CLOSING ARE IN LARGE MARKETS AND THAT THE UNIT WOULD FOCUS ON SECONDARY MARKETS AND STORES LOCATED IN MALLS TANDY SAID ITS US RETAIL SALES FOR DECEMBER WERE 6046 MILLION UP 7 FROM 5659 MILLION A YEAR EARLIER SALES ROSE 1 AT STORES OPEN AT LEAST ONE YEAR THE COMPANY SAID TANDY DOESN'T RELEASE RESULTS FOR INDIVIDUAL OPERATING UNITS FOR ITS FISCAL FIRST QUARTER ENDED SEPT 30 TANDY HAD NET INCOME OF 321 MILLION OR 40 CENTS A SHARE ON REVENUE OF 12 BILLION IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON FRIDAY TANDY SHARES CLOSED AT 30875 UP 625 CENTS 9301110122 930111 PLANS TO BUILD UP BRANDENBURG GATE CALLED OUT OF BOUNDS PERFORMANCE ARTIST PROTESTS COMMERCIAL DEVELOPMENT WITH ONEMAN GOLF OUTING BY REGINE WOSNITZA SPECIAL TO THE WALL STREET JOURNAL BERLIN THE YOUNG AMERICAN GOLFER FINALLY FOUND HIS RHYTHM AT THE 11TH HOLE WHERE HE SENT A WELLPLACED BALL SAILING IN A PERFECT DRIVE RIGHT THROUGH THE ARCH OF THE BRANDENBURG GATE CLEARLY THE FORMER DEATH STRIP OF DIVIDED BERLIN IS NOT YOUR AVERAGE GOLF COURSE BUT THEN JOHN POWERS IS NOT YOUR AVERAGE GOLFER THOUGH MR POWERS HAD NEVER PLAYED GOLF BEFORE HE CRUISED TO AN EASY VICTORY IN THE SELFSTAGED BERLIN INTERNATIONAL GOLF OPEN THIS AUTUMN OF COURSE THE 33YEAROLD CALIFORNIAN'S VICTORY COULD ALSO BE EXPLAINED BY THE ABSENCE OF OTHER PLAYERS IN THE COMPETITION MR POWERS IS A PERFORMANCE ARTIST AND THE ONEMAN TOURNAMENT WAS THE LATEST VOLLEY IN HIS CAMPAIGN AGAINST THE COMMERCIAL DEVELOPMENT OF POTSDAMER PLATZ BERLIN'S ONCE AND FUTURE CENTER FORMERLY ONE OF EUROPE'S MOST HISTORIC SQUARES AND A BARREN FIELD OF DIRT AND WEEDS SINCE WORLD WAR II ALMOST SINCE THEIR UNVEILING CONTROVERSY HAS SWIRLED AROUND PLANS TO BUILD ON THE SPACE THE CITYAPPROVED PLAN WOULD TURN THE AREA INTO A MAJOR OFFICE APARTMENT AND SHOPPING COMPLEX DOMINATED BY CORPORATE GIANTS DAIMLERBENZ AG AND SONY AMONG A HOST OF OTHER COMPLAINTS ABOUT THE PROJECT INCLUDING WHETHER THE PROPERTY SHOULD EVER HAVE LEFT PUBLIC HANDS THE EUROPEAN COMMUNITY HAS QUESTIONED THE LOW PROPERTY PRICES OFFERED TO THE DEVELOPERS ENTER JOHN POWERS GOLFER SHARK SPOTTER ARTIST MY ART IS INSPIRED THROUGH MY MOMENTTOMOMENT INTERACTIONS WITH THE ENVIRONMENT SAYS THE UNLIKELY HERO I REGARD IT AS INAPPROPRIATE TO CREATE ANYTHING PERMANENT IN THESE TIMES OF CHANGES PRESUMABLY THE POTSDAMER PLATZ DEVELOPMENTS WOULD FALL INTO HIS PERMANENT CATEGORY THE ARTIST SAYS HIS GOLF TOURNAMENT WAS INSPIRED NOT ONLY BY THE HIGHPOWERED CORPORATE TYPES HE SEES DESCENDING ON BERLIN BUT BY THE MATCH HE SEES BETWEEN THE CONTROL AND POWER OF GOLF AND THAT OF BIGTIME REALESTATE DEALS THERE IS GREAT POWER BEHIND A CONTROLLED SHOT HE EXPLAINS AND ONE WELLPLAYED SHOT CAN COVER AN ENORMOUS SPACE MR POWERS HAS SPENT MANY YEARS AT THIS UNIQUE BRAND OF ART AND AS ONE MIGHT EXPECT HIS PATH HASN'T ALWAYS BEEN AN EASY ONE IN MAY 1989 WHILE VISITING SAN FRANCISCO HE ERECTED A WHITE PICKET FENCE AROUND HIS CAR WHICH HE HAD PARKED OUTSIDE TIFFANY'S HE DECLARED HIS CAR TO BE HIS HOME AND PLAYED HOUSEHOLD NOISES ON A TAPE DECK INSIDE SUCH AS CLINKING POTS AND PANS A BARKING DOG AND A FLUSHING TOILET MR POWERS DUTIFULLY INSERTED MONEY INTO THE PARKING METER AND HANDED OUT FLYERS THAT READ THE CITY CAR A WHITE PICKET FENCE WITH SOUNDS FROM HOME HIS AIM HE SAYS WAS TO SHOW THE CONCURRENT MERGING AND DELIMITATION OF PUBLIC AND PRIVATE SPACE THE PUZZLED POLICE DIDN'T GO FOR IT BUT WHAT COULD THEY CHARGE HIM WITH AFTER A LONG DISCUSSION THEY TICKETED HIM FOR LITTERING IN BERLIN CITY AUTHORITIES HAVE RECEIVED MR POWERS MORE FAVORABLY THE WAY HE DEDICATES HIS ART TO OBSERVING THE CONSTANT CHANGES TAKING PLACE IN BERLIN IS VERY CONVINCING SAID A MEMBER OF THE JURY THAT AWARDED HIM A GRANT FROM THE BERLIN SENATE FOR CULTURAL AFFAIRS THE AWARD EQUIVALENT TO ABOUT 6370 HAS MADE IT POSSIBLE FOR HIM TO WORK IN GERMANY'S NEW CAPITAL FINANCIALLY IT'S A CONSTANT STRUGGLE BEING HERE HE SAYS BUT IN LIFE AS IN ART I REGARD IT AS A CHALLENGE TO MANAGE ON A LOWCOST BUDGET BEFORE MAKING POTSDAMER PLATZ HIS STAGE BEFORE THE END OF THE COLD WAR EVEN MR POWERS SPENT MUCH TIME WORKING IN THE VICINITY OF THE BERLIN WALL HE NEVER USED IT AS A CANVAS HOWEVER AS SO MANY OTHER ARTISTS HAD DONE IN NOVEMBER 1989 WHEN HE SAW GERMANS HACKING AWAY AT THE WALL TO BRING IT DOWN HE VIEWED THEIR REACTION AS THE RIGHT ONE IN CONTRAST TO THE WESTERNERS' MERELY GATHERING SHARDS OF CONCRETE AS SOUVENIRS THE SOUVENIRTAKERS APPEARED TO SUGGEST SAYS THE ARTIST THAT THE WEST WAS DESCENDING ON THE EAST AND THAT THERE WOULD BE A LOT OF PAIN SO HE APPLIED AN ENORMOUS SELFCONSTRUCTED BANDAID TO THE WALL BUT PEOPLE IMMEDIATELY STARTED SCRAPING AT THAT AS WELL AFTER A FEW WEEKS OF TRYING TO GLUE THE BANDAGE BACK ON THE ARTIST LET HISTORY TAKE ITS COURSE IN DECEMBER 1991 MR POWERS MADE HIS STATEMENT ON ALL THE CARNIVOROUS BUSINESS INTERESTS ROLLING INTO TOWN WHICH HE BELIEVED THE POTSDAMER PLATZ DEVELOPMENT SYMBOLIZED HE EMBEDDED PAPIERMACHE SHARK FINS IN THE FROZEN GROUND AND DRESSED IN A BUSINESS SUIT GOGGLES SNORKEL AND FLIPPERS FLAPPED HIS WAY ACROSS THE 48HECTARE POTSDAIMLER PLATZ AS IT HAD BECOME NICKNAMED BY THEN CARRYING A SIGN THAT SAID ACHTUNGHAIE BEWARESHARKS MANY PASSERSBY REACTED WITH A THUMBSUP FOR HIS LATEST PROTEST MR POWERS COULDN'T HAVE PICKED A MORE APPROPRIATE STAGE POTSDAMER PLATZ HAS BEEN THE SYMBOL OF BERLIN'S CHANGE OVER THE YEARS FOR BETTER AND WORSE BEFORE IT WAS FLATTENED DURING WORLD WAR II THE SQUARE WAS SAID TO BE THE BUSIEST IN EUROPE GERMANY'S FIRST TRAFFIC LIGHT WAS INSTALLED THERE IN 1924 POLICE ARRESTED SOCIALIST LEADER KARL LIEBKNECHT THERE AFTER HE SPOKE AGAINST GERMAN WARMAKING IN 1916 AND SOVIET TANKS QUASHED AN UPRISING OF EAST GERMAN WORKERS ON THE SQUARE IN 1953 FROM 1961 HOWEVER WHEN THE BERLIN WALL WAS ERECTED POTSDAMER PLATZ WAS A BARREN FIELD COVERED WITH ONLY SCATTERED WEEDS WHERE TOURISTS CLIMBED ATOP OBSERVATION TOWERS TO VIEW THE DEATH STRIP BETWEEN EAST AND WEST DESPITE ALL HIS EFFORTS MR POWERS HAS NO ILLUSION THAT HE MIGHT ACTUALLY INFLUENCE THE COURSE OF EVENTS MY ART IS PURELY AESTHETIC AND ARTISTIC IN ITS CONCEPTION HE SAYS HE AIMS AT FORCING PEOPLE TO REFLECT REACT AND THINK FOR A SECOND A MINUTE OR LONGER ON THEIR EVERYDAY SURROUNDINGS AND CIRCUMSTANCES HIS BERLIN CITY SUBSIDY RUNS OUT SOON BUT THE POTSDAMER PLATZ DEVELOPERS CONTINUE TO PLOW AHEAD STILL MR POWERS IS DETERMINED TO CONTINUE THE BATTLE AS LONG AS HE CAN UNTIL THE PROJECTS ARE ACTUALLY BUILT HE SAYS THERE IS STILL A CHANCE 9301110121 930111 TECHNOLOGY BY JOHN R WILKE ELECTRONIC MAIL IS CERTAIN TO PROLIFERATE IN WASHINGTON WITH THE ELECTION OF BILL CLINTON AND ALBERT GORE WHO RELIED HEAVILY ON IT DURING THE CAMPAIGN BILL KRAUSE CAMPAIGN COMPUTER MANAGER SAYS ONE IDEA BEING TALKED ABOUT IS A WAY FOR GOVERNMENT OFFICES AND AGENCIES TO COMMUNICATE QUICKLY AND DIRECTLY THROUGH A SECURE EMAIL SYSTEM TODAY HE SAYS THERE ARE SCORES OF ISOLATED EMAIL SYSTEMS SCATTERED AROUND WASHINGTON BUT THEY CAN'T TALK TO EACH OTHER WIDESPREAD EMAIL USE HOWEVER COULD BRING SUBTLE CHANGES TO THE PROCESS OF GOVERNING AND THE TECHNOLOGY'S LEGAL STATUS IS CLOUDED IF THE PRESIDENT AND HOUSE MAJORITY LEADER TRADE EMAIL MESSAGES HAS A MEETING OCCURRED ARE MESSAGES PRESIDENTIAL DOCUMENTS AS DEFINED BY LAW OR ARE THEY LIKE PHONE CALLS A FEDERAL COURT IN WASHINGTON DECIDED LAST WEEK THAT SOME PURELY ELECTRONIC DOCUMENTS MUST INDEED BE CONSIDERED OFFICIAL RECORDS THE COURT ORDERED THE WHITE HOUSE NOT TO DESTROY BACKUP COMPUTER TAPES CONTAINING COPIES OF EMAIL MESSAGES SOME OF WHICH HAD BECOME EVIDENCE IN THE IRANCONTRA CASE THE WHITE HOUSE SUED BY RESEARCHERS SEEKING TO PRESERVE THE TAPES HAD ARGUED THAT ONLY PAPER RECORDS MUST BE SAVED UNDER EXISTING LAW LAST WEEK'S RULING MAY NOT BE THE LAST WORD THE JUSTICE DEPARTMENT SAYS IT MAY APPEAL EDDIE BECKER A RESEARCHER AND COPLAINTIFF IN THE SUIT SAYS THE RECORDS USED IN GOVERNING ARE INCREASINGLY ELECTRONIC NOW ZAPPING BACK AND FORTH IN A VIRTUAL REALITY AND WHEN SOMETHING GOES WRONG THEY PUSH A DELETE BUTTON IT'S AN INFORMATION REVOLUTION A POWERFUL TOOL BUT ONE THAT OBSCURES ACCOUNTABILITY TO THE VOTERS AND TO HISTORY COMING SOON TO A PC NEARBY A BOOKSTORE WITHOUT SHELVES SELLING BOOKS WITHOUT PAPER AT THE ONLINE BOOKSTORE PC USERS WILL BE ABLE TO BROWSE THROUGH BOOKS ON THEIR PCS FOR 5 AN HOUR FOR ANOTHER 5 THEY'LL BE ABLE TO DOWNLOAD A BOOK'S ENTIRE CONTENTS ONTO A PC CUSTOMERS ENTER THE BOOKSTORE BY CONNECTING TO INTERNET A VAST PUBLIC NETWORK THAT LETS USERS SEND DATA OR TEXT BETWEEN PCS BUYERS ALSO WILL BE ABLE TO ORDER TRADITIONAL BOOKS FROM ONLINE OR EVEN CONVERSE WITH AUTHORS BY COMPUTER THIS ISN'T THE FIRST ONLINE SERVICE TO MAKE BOOKS AVAILABLE ELECTRONICALLY PROJECT GUTENBERG ALSO ON INTERNET OFFERS MOSTLY TEXTS THAT HAVE REVERTED TO THE PUBLIC DOMAIN SUCH AS MOBY DICK BUT ONLINE SAYS IT WILL BE THE FIRST TO OFFER CURRENT TITLES IN A WAY THAT COMPENSATES AUTHORS AND PUBLISHERS ELECTRONIC RIGHTS HAVE BEEN A REALLY TRICKY AREA SAYS LAURA FILLMORE PRESIDENT OF EDITORIAL INC ROCKPORT MASS WHICH LAUNCHED THE BOOKSTORE WITH SOFTWARE TOOL & DIE BROOKLINE MASS BUT MORE AND MORE PUBLISHERS ARE MOVING INTO ALTERNATIVE MARKETS MS FILLMORE SAYS THE BOOKSTORE WHICH IS JUST STARTING UP WILL HAVE ABOUT 100 TITLES INCLUDING ART BOOKS WITH COLOR PHOTOS BY YEAR'S END AND CURRENT TALKS WITH BIG PUBLISHERS INCLUDING TIME WARNER'S LITTLE BROWN COULD BRING MORE ADDISON WESLEY PUBLISHING AND GLOBE PEQUOT PRESS WILL BE THE FIRST TO OFFER ONLINE TITLES THROUGH THE SERVICE THIS HAS THE POTENTIAL TO CHANGE THE WAY WE ALL DO BUSINESS SAYS KEITH WOLLMAN A SENIOR EDITOR AT ADDISON WESLEY ONCE A BOOK IS ON LINE IT'S SUDDENLY REACHING A MUCH WIDER AUDIENCE BERNARD RATH DIRECTOR OF THE AMERICAN BOOKSELLERS ASSOCIATION CALLS ONLINE BOOKS A VERY NICE CONCEPT BUT SAYS THE TECHNOLOGY ISN'T YET POWERFUL ENOUGH TO HAVE MUCH IMPACT ON BOOKSTORES ANYTIME SOON WORKERS HAVE ALWAYS HAD TO WASH UP BEFORE ENTERING PRODUCTION AREAS AT BEN & JERRY'S HOMEMADE BUT NOW THERE'S AN ALTERNATIVE TO THE SINK EACH TIME THEY GO TO WORK EMPLOYEES AT THE VERMONT ICECREAM MAKER INSERT THEIR HANDS INTO A SMALL UNIT WITH TWO ROUND OPENINGS A PHOTOCELL ACTIVATES SPINNING JETS OF ANTIBACTERIAL SOLUTION CLEANSING MORE THOROUGHLY THAN A STANDARD WASHING WITH SOAP AND WATER THE HIGHTECH HANDWASHER MADE BY MERITECH ENGLEWOOD COLO IS AIMED AT RESTAURANTS COMPUTER CHIPMAKING PLANTS WHERE EVEN A SPECK OF DUST CAN BE RUINOUS AND HOSPITALS THOUGH NOT BY DOCTORS FOR SCRUBBING BEFORE SURGERY AT CHEERS EARLY LEARNING CENTERS A CHAIN OF PRESCHOOLS IN FORT MYERS FLA CHILDREN WASH MORE FREQUENTLY WITH IT AND THE INCIDENCE OF COLDS AND FLU SEEMS TO HAVE FALLEN SAYS THE PRESCHOOL'S OWNER RICHARD CARTUYVELLES THE KIDS REALLY LIKE IT HE ADDS THEY SAY IT TICKLES A DRAWBACK AT 6000 EACH THE UNIT MAY BE TOO EXPENSIVE FOR SOME SMALL BUSINESSES AND RESTAURANTS ENVIROSENSE NEWTON MASS OFFERS ANOTHER ATTEMPT TO IMPROVE ON THE COMMON FAUCET AN ULTRASONICALLY ACTIVATED FAUCET VALVE THAT ATTACHES QUICKLY TO MOST SPIGOTS WITHOUT THE HELP OF A PLUMBER AND COSTS LESS THAN INFRARED CONTROLLERS THE 170 UNIT IS AIMED AT HOSPITALS AND MEDICAL OFFICES AND IS INTENDED BOTH TO SAVE WATER AND ENERGY AND TO REDUCE INFECTIONS TRANSMITTED BY TOUCHING FAUCET HANDLES AFTER SCRUBBING NEW FOAM MATERIALS MADE FROM A COMMON SEAWEED ARE BIODEGRADABLE LIGHTER THAN AIR AND EVEN EDIBLE THE FOAMS ARE A SPINOFF FROM NUCLEAR WEAPONS RESEARCH AT THE LAWRENCE LIVERMORE LABORATORY IN CALIFORNIA SAYS DEVELOPER ROBERT L MORRISON A RESEARCHER AT THE LAB MADE OF AGAR A FOOD ADDITIVE DERIVED FROM RED ALGAE THE FOAM IS BEING EVALUATED FOR SUCH DIVERSE USES AS SOUND ABSORPTION TIMEDRELEASE CAPSULES AND PACKAGING THAT WOULD DEGRADE IN LANDFILLS AND WOULDN'T REQUIRE OZONEEATING CHLOROFLUOROCARBONS IN MANUFACTURING MR MORRISON SAYS THE FOAM NEEDS FURTHER DEVELOPMENT TO MAKE IT LESS COSTLY AND EASIER TO PRODUCE BUT HE SAYS DRUG FIRMS AIRCRAFT MAKERS AND OTHERS HAVE EXPRESSED INTEREST 9301110120 930111 GLOBAL VIEW IT COSTS A LOT TO FEED A DEFICIT BILL BY GEORGE MELLOAN BILL CLINTON LEARNED LAST WEEK THAT THE FEDERAL DEFICIT MONSTER HE SOON WILL CONFRONT IS EVEN BIGGER THAN HE HAD IMAGINED THE RAISE TAXESCUT SPENDING BARGAIN DICK DARMAN MADE WITH CONGRESS IN 1990 JUST DIDN'T WORK OUT FOR THE UNSURPRISING REASON THAT THE TAXES STALLED THE ECONOMY AND CONGRESS WELSHED ON ITS SPENDING PLEDGE THE REACTION TO MR DARMAN'S LATEST NUMBERS FROM DEMOCRATS WHO HAVE CONTROLLED BOTH HOUSES OF CONGRESS THESE LAST EIGHT YEARS WAS STRAIGHT OUT OF CASABLANCA THEY WERE SHOCKED SHOCKED TO LEARN THAT THERE HAD BEEN GAMBLING GOING ON IN THEIR ESTABLISHMENT AS A NEWCOMER TO THE BELTWAY CASINO MR CLINTON MAY HAVE BEEN GENUINELY SHOCKED BY GEORGE BUSH'S FINAL BUDGET HE LEARNED THAT THE PROJECTED FISCAL 1994 FEDERAL DEFICIT WILL CONTINUE TO HOVER CLOSE TO 300 BILLION AND THAT LATER ON IF THE PRESENT FEDERAL SPENDING TREND CONTINUES IT WILL SOAR ABOVE 300 BILLION SOME DEMOCRATS MADE THE MOST OF THESE NUMBERS BY SAYING IN EFFECT OH WELL SINCE THE DEFICIT PROJECTIONS ARE SO MUCH LARGER THAN WE IMAGINED PRESIDENT CLINTON CAN SCRAP HIS CAMPAIGN PROMISE TO HALVE THE DEFICIT DURING HIS TERM OF OFFICE PROBABLY NOT MANY WHO VOTED FOR MR CLINTON TOOK THAT PROMISE VERY SERIOUSLY ANYWAY GIVEN THE LONG WISH LISTS OF THE CLINTON TEAM THE CONGRESS AND WASHINGTON'S SPECIAL INTEREST LOBBYISTS MERELY RAILING AT THE DEFICIT DOESN'T MOVE MANY MOUNTAINS SEN PAT MOYNIHAN D NY ONCE BEGGED THE QUESTION ENTIRELY IT DOESN'T DO ANY GOOD TO YELL AT US ABOUT OUR SPENDING BECAUSE WE CAN'T DO ANYTHING ABOUT IT HE ARGUED THAT THE CONGRESS IN ITS PRESENT INSTITUTIONAL MODE IS INCAPABLE OF EXERCISING SELF RESTRAINT BUT THE DEMOCRATIC SENATOR ALSO AWOKE AFTER ELECTION DAY TO THE REALIZATION THAT HIS PARTY NOW CONTROLS THE WHITE HOUSE AS WELL AS CONGRESS AND SO NOW IT'S OUR DEFICIT INDEED IT IS AND SO PERHAPS MR CLINTON COULD USE SOME ADVICE ON THE CARE AND FEEDING OF BUDGET DEFICITS SOME OF IT DRAWN FROM THE EXPERIENCE OF OTHER NATIONS THAT HAVE OVERINDULGED IN DEFICIT FINANCING ONE OF THE FIRST LESSONS IS THAT A GOVERNMENT CAN RUN UP AS MUCH DEBT AS IT WANTS SO LONG AS IT IS WILLING TO PAY FOR IT INDEED THAT'S BEEN PRETTY MUCH THE BELTWAY PHILOSOPHY OF THE LAST 25 YEARS OR SO THE BELIEF WAS THAT SOME FUTURE CONGRESS AND ADMINISTRATION WOULD GET THE DINNER CHECK BUT MR CLINTON MAY SOON FIND THE WAITER HOVERING AT HIS ELBOW COUNTRIES DO SURVIVE SUCH THINGS BUT THEY DON'T SURVIVE WITHOUT PAYING A PRICE FREE UNIVERSITY OF ROME ECONOMIST ANTONIO MARTINO WROTE IN THE WALL STREET JOURNAL EUROPE LAST WEEK THAT INTEREST PAYMENTS ON THE 1143 BILLION ITALIAN DEBT NOW ARE ABSORBING 70 OF THE GOVERNMENT'S REVENUES FROM DIRECT TAXATION PARTLY BECAUSE OF THIS HUGE INTEREST COST GOVERNMENT SPENDING IS RISING RAPIDLY DEFICITS ARE IN EXCESS OF 10 OF GNP AND THE DEBT AND INTEREST COSTS KEEP PILING UP WITH THIS RUNAWAY BUDGET ITALY HAS BEEN FORCED TO 1 SCROUNGE AROUND FOR MORE REVENUES WITH A RAFT OF UNPOPULAR NEW TAXES 2 START SELLING STATEOWNED INDUSTRIES AND 3 DROP OUT OF THE EUROPEAN MONETARY SYSTEM EMS IN ORDER TO FLOAT AND DEVALUE THE LIRA THAT ALMOST CERTAINLY WILL RAISE THE INFLATION RATE WHICH AT SOME 6 ALREADY IS HIGH BY EUROPEAN COMMUNITY STANDARDS ITALY PROBABLY WILL DO WHAT GOVERNMENTS TRADITIONALLY DO UNDER SUCH CIRCUMSTANCES IT WILL INFLATE ITS WAY OUT OF ITS DIFFICULTY BY MONETIZING DEBT BUT THAT WILL MEAN THAT IT WILL NOT BE ABLE TO REJOIN THE EMS AND THAT THE EC'S HOPES OF ESTABLISHING A SINGLE CURRENCY WILL BE POSTPONED FURTHER INTO THE DISTANT FUTURE IT ALSO WILL MEAN THAT ITALIANS ALREADY OVERTAXED WILL BE TAXED EVEN MORE IN THAT CRUELEST OF ALL POSSIBLE WAYS THROUGH INFLATION A NATION OF HIGHLY PRODUCTIVE PEOPLE WITH THE THIRD LARGEST ECONOMY IN THE EC WILL BE PUT THROUGH THE WRINGER WHICH BRINGS US BACK TO MR CLINTON AND THE CHOICES HE FACES IN TERMS OF THE FEDERAL COSTS OF BORROWING HE STILL HAS SOME MARGIN INTEREST COSTS TO THE US TREASURY ARE RISING ALONG WITH THE DEBT BUT STILL ARE ONLY ABOUT 18 OF TOTAL FEDERAL REVENUES TO SOME DEGREE THEY ARE BEING HELD DOWN ARTIFICIALLY BY A VERY LOW DISCOUNT RATE AT THE FED AND BY CAPITAL RULES FOR BANKS THAT TILT THEIR INVESTMENTS TOWARD TREASURY SECURITIES BUT AS THE US ECONOMIC RECOVERY PROGRESSES NEW PRIVATE DEMANDS FOR CREDIT WILL PUT UPWARD PRESSURE ON INTEREST RATES FACING TREASURY SECRETARY LLOYD BENTSEN WITH HIGHER DEBT FINANCING COSTS WHICH HAVE TOP PRIORITY OVER OTHER CLAIMS ON GOVERNMENT REVENUES EVEN HEALTH CARE MR CLINTON CAN CONTINUE TO WATCH THE FEDERAL DEBT SOAR AND AT THE PRESENT RATE IT WON'T TAKE MANY MORE YEARS FOR IT TO APPROACH THE ITALIAN LEVEL HE CAN RAISE TAXES BUT SHOULD CONSIDER THE POSSIBILITY EVEN THE LIKELIHOOD THAT GIVEN THE PRESENT VERY DELICATE BALANCE OF THE US ECONOMY A NEW TAX INCREASE COULD BE JUST AS UNPRODUCTIVE OF REVENUES AS THE ONE IN 1990 IT COULD EVEN PLUNGE THE COUNTRY INTO A NEW RECESSION OR HE COULD DO WHAT THE ITALIANS MOST LIKELY WILL DO PUT HEAVY PRESSURE ON THE CENTRAL BANK TO FINANCE THE DEFICIT AND RISK THE INFLATION TAX A WORD NEEDS TO BE SAID HERE ABOUT HOW GOVERNMENTS TRADITIONALLY HAVE RATIONALIZED THE USE OF THE INFLATION TAX THE FIRST INSTINCT IS TO BLAME PRODUCERS AS JIMMY CARTER DID AFTER ALL ISN'T IT THE PRODUCERS WHO ACTUALLY CHANGE THE PRICE TAGS SECOND IT IS INSISTED THAT A CONTINUANCE OF DEFICIT SPENDING IS NECESSARY TO PRESERVE THE SOCIAL SAFETY NET AND PROTECT THE POOR THAT LATTER CLAIM IS ESPECIALLY FALSE NOTHING HURTS THE POOR MORE THAN INFLATION THE INTEREST THE GOVERNMENT PAYS ON THE SECURITIES IT ISSUES IS ESSENTIALLY A TRANSFER FROM MIDDLE CLASS TAXPAYERS TO BANKS AND OTHER LARGE INVESTORS IN TREASURIES THIS HAS THE ECONOMIC BENEFIT OF RECYCLING MONEY BACK INTO THE CAPITAL MARKETS BUT IT IS DOUBTFUL THAT THE BENEFITS THAT DERIVE FROM THAT OFFSET THE COSTS OF INFLATION TO THE POOR AND MIDDLE CLASS THE RECORD OF THE 1970S INFLATION SUGGESTS THAT EVERYONE GETS POORER TO PUT THE CASE SIMPLY ITALIAN TAXPAYERS NOW ARE DOING LITTLE OTHER THAN PROVIDING INCOME FOR INVESTORS IN GOVERNMENT BONDS MOST OF WHOM ARE NOT POOR THESE ARE NOT VERY HAPPY PROSPECTS FOR AMERICA'S YOUNG PRESIDENT IF HE DOES NOTHING MUCH IN THOSE MUCH ADVERTISED FIRST 100 DAYS THERE IS A CHANCE THAT THE RECOVERY WILL CONTINUE AND PULL HIM OUT OF FISCAL AND BUDGETARY DIFFICULTY BUT HOW GREAT ARE THE CHANCES OF THAT 9301110119 930111 GPU FAILS TO WIN RATE BOOST TO SHUT THREE MILE ISLAND BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THREE MILE ISLAND NUCLEAR REACTOR ACCIDENT IN 1979 CONTINUES TO HAUNT GENERAL PUBLIC UTILITIES CORP PENNSYLVANIA UTILITY REGULATORS IN A 2TO1 VOTE INDICATED THEY EXPECT THE COMPANY AND ITS SHAREHOLDERS TO PAY MUCH OF THE COST TO FINALLY CLOSE THE CRIPPLED REACTOR WHICH HAS BEEN INOPERABLE SINCE THE SEVERE ACCIDENT FORCED ITS CLOSURE GPU'S METROPOLITAN EDISON CO UNIT HAD SOUGHT A 68 MILLION RATE INCREASE PARTLY TO PAY COSTS OF DECOMMISSIONING THE REACTOR BUT THE STATE PUBLIC UTILITY COMMISSION IN A PRELIMINARY VOTE INDICATED IT AGREED WITH THE STATE CONSUMER ADVOCATE THAT CUSTOMERS SHOULDN'T BE SADDLED WITH ACCIDENTRELATED EXPENSE GPU SAID THE DISCUSSION WASN'T CLEAR ON WHETHER NORMAL COSTS OF CLOSING A REACTOR COULD BE RECOVERED IN RATES AS A RESULT ANALYSTS AND THE COMPANY SAID METROPOLITAN EDISON COULD BE FORCED TO TAKE A PRETAX CHARGE OF AS MUCH AS 110 MILLION TO COVER DECOMMISSIONING COSTS AT THE UNIT 2 REACTOR THIS IS A DISAPPOINTING DEVELOPMENT SAID STEVE ZIMMERMAN UTILITIES ANALYST AT STANDARD & POOR'S CORP IF IT IS APPROVED METROPOLITAN EDISON MIGHT HAVE TO REALLY SLASH SOME OPERATING BUDGETS THE UTILITY HASN'T MADE A SPECIFIC DECOMMISSIONING COST STUDY FOR THE PLANT BUT HAS BEEN USING ESTIMATES THAT RADIOLOGICAL DECOMMISSIONING COULD COST 114 MILLION AND OTHER REMOVAL COSTS 38 MILLION METROPOLITAN EDISON ALREADY HAS SET ASIDE 40 MILLION FOR SUCH COSTS WE ARE EXTREMELY DISAPPOINTED BY THE TENTATIVE RULING SAID FRED D HADER PRESIDENT OF METROPOLITAN EDISON A RULING DISALLOWING ALL DECOMMISSIONING COSTS FOR THE REACTOR WILL HAVE SIGNIFICANT ADVERSE FINANCIAL CONSEQUENCES HE SAID IF THE DECISION BECOMES FINAL THE COMPANY CAUTIONED METROPOLITAN EDISON AND OTHER UNITS IN THE GPU SYSTEM WILL HAVE TO RECONSIDER THEIR 1993 SPENDING PLANS AND IT ADDED THE RULING WOULD IMPAIR METROPOLITAN EDISON'S ABILITY TO ISSUE DEBT SECURITIES A FINAL DECISION IS EXPECTED JAN 21 METROPOLITAN EDISON OWNS 50 OF THREE MILE ISLAND UNIT 2 PENNSYLVANIA ELECTRIC CO AND JERSEY CENTRAL & LIGHT CO OTHER GPU UNITS OWN 25 EACH STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC AN ADVERSE RATE RULING COULD RESULT IN A DOWNGRADING OF THE GPU UNITS' DEBT RATINGS 9301110118 930111 FINANCING BUSINESS COMCAST CORP COMCAST CORP PHILADELPHIA PLANS TO OFFER 200 MILLION OF 9 1/2 SENIOR SUBORDINATED DEBENTURES DUE JAN 15 2008 INTEREST WILL BE PAYABLE JAN 15 AND JULY 15 OF EACH YEAR BEGINNING IN JULY THE DEBT MAY NOT BE REDEEMED BEFORE 2000 THE DEVELOPER AND OPERATOR OF CABLE COMMUNICATIONS SYSTEMS SAID PROCEEDS OF THE OFFERING WHICH WAS UNDERWRITTEN BY FIRST BOSTON CORP WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9301110117 930111 HART HOLDING RILES HOLDERS WITH PLAN FOR REVERSE SPLIT LAWSUITS CHARGE PROPOSAL PUTS TOO LOW A VALUE ON SHARES OF DEBTLADEN COMPANY BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HART HOLDING CO A DEBTLADEN INDUSTRIAL PRODUCTS COMPANY PLANS TO TAKE ITSELF OFF THE INVESTOR RADAR SCREEN WITH A 1FOR300 REVERSE STOCK SPLIT ALTHOUGH A FEW SHAREHOLDERS HAVE CHALLENGED THE REVERSE SPLIT IN COURT THE OUTCOME DOESN'T SEEM IN DOUBT THE PLAN IS BEING ADVANCED BY JAMES W HART SR THE COMPANY'S CHAIRMAN AND PRESIDENT WHO OWNS 94 OF THE STOCK UNDER THE PROPOSAL SHAREHOLDERS WILL RECEIVE ONE NEW SHARE FOR EVERY 300 SHARES CURRENTLY HELD AND HART HOLDING WILL ACQUIRE RESULTING FRACTIONAL SHARES AT A PRICE EQUAL TO 150 A SHARE ON A POSTSPLIT BASIS OR 50 CENTS FOR EACH CURRENT SHARE THE SPLIT WILL REDUCE HART HOLDING'S SHAREHOLDER BASE BELOW PUBLIC REPORTING REQUIREMENT LEVELS THUS THE RECENT FILINGS COULD BE THE LAST PUBLIC LOOK AT HART HOLDING WHICH FROM 1940 THROUGH MID1979 OWNED THE SCHICK SHAVER AND PERSONALCARE PRODUCTS COMPANY SCHICK RAN INTO DEBT PROBLEMS IN THE 1970S AND IN THE EARLY 1980S SOLD OFF MOST OF ITS ASSETS INCLUDING THE RIGHT TO USE THE SCHICK TRADENAME SUBSEQUENTLY USING JUNKBOND FINANCING ARRANGED BY DREXEL BURNHAM LAMBERT INC THE COMPANY BORROWED HEAVILY TO ACQUIRE SEVERAL INDUSTRIAL COMPANIES RUNNING LONGTERM DEBT AS HIGH AS 300 MILLION IN 1988 SINCE THEN DEBT HAS BEEN CUT BY MORE THAN HALF THESE DAYS THE COMPANY'S BUSINESS IS A 94 STAKE IN REEVES INDUSTRIES INC A MAKER OF APPAREL TEXTILES AND INDUSTRIAL COATED FABRICS AMONG OTHER THINGS REEVES IS A MAJOR MAKER OF FABRIC USED FOR AUTOMOBILE AIRBAGS IN 1991 HART HOLDING HAD NET INCOME OF 67 MILLION OR 44 CENTS A SHARE ON 270 MILLION IN SALES WHILE INTEREST EXPENSE AND RELATED COSTS TOTALED ALMOST 22 MILLION GIVEN ITS HIGHLY LEVERAGED CONDITION THE PROXY MATERIAL DECLARES HART HOLDING IS INAPPROPRIATE FOR THOSE INVESTORS WITH LITTLE ECONOMIC INTEREST IN THE CORPORATION IT NOTED THAT OF APPROXIMATELY 2000 SHAREHOLDERS 13 OWN ONLY ONE SHARE EACH AND 745 HOLD 10 SHARES OR LESS IN ADDITION THERE'S LITTLE IF ANY MARKET FOR THE SHARES WHICH RECENTLY HAVE BEEN QUOTED IN THE 3 RANGE IN OVERTHECOUNTER PINK SHEET TRADING OF THE APPROXIMATELY 13 MILLION SHARES OUTSTANDING ONLY ABOUT 586000 ARE HELD BY ANYONE OTHER THAN OFFICERS OR DIRECTORS THE REVERSE SPLIT HART HOLDING SAYS WILL SAVE ABOUT 85000 A YEAR IN PUBLIC REPORTING COSTS STILL SOME SHAREHOLDERS ARE IRKED BY MR HART'S DECISION TO IMPLEMENT THE REVERSE SPLIT HART'S PROPOSAL VALUES THE COMPANY'S SHARES AT 50 CENTS EACH WELL BELOW THE STOCK'S RECENT TRADING LEVEL ONE SHAREHOLDER SUIT SAYS THE 50 CENT VALUATION ISN'T FAIR AND SEEKS TO HAVE THE PLAN RESCINDED MR HART AND HART HOLDING DECLINED COMMENT ON THE LAWSUIT OR THE REVERSE SPLIT OR TO DISCUSS ANY OF ITS BUSINESS OPERATIONS OR FUTURE PLANS HART HOLDING'S INDUSTRIAL COATED FABRICS BUSINESS IS A LEADING PRODUCER OF PRINTING BLANKETS USED IN OFFSET LITHOGRAPHY SPECIALTY COATED FABRICS WITH APPLICATIONS SUCH AS MILITARY AND COMMERCIAL LIFE RAFTS AND VESTS AND COATED FABRICS FOR INDUSTRIAL COVERS SUCH AS TARPAULINS AS WELL AS AIRBAG FABRIC MATERIALS THE APPAREL TEXTILE GROUP MAKES GREIGE GOODS OR UNDYED WOVEN FABRICS AS WELL AS FINISHED GOODS SOLD TO APPAREL MAKERS 9301110114 930111 SIEMENS UNIT TO JOIN TWO COMPANIES IN BID FOR LOS ANGELES WORK LOS ANGELES SIEMENS DUEWAG CORP A UNIT OF SIEMENS AG SAID IT WILL JOIN WITH TWO OTHER COMPANIES TO PURSUE A CONTRACT TO MAKE RAIL CARS FOR THE PLANNED LOS ANGELES COMMUTER SYSTEM THE PROPOSAL BY A TEAM MADE UP OF SIEMENS DUEWAG SACRAMENTO CALIF TRW INC'S TRW AEROSPACE UNIT AND AAI CORP BALTIMORE WAS THE FOURTH BID TO PRODUCE CARS FOR THE LIGHT RAIL SYSTEM ITS VALUE WASN'T DISCLOSED OTHER BIDDERS ARE A TEAM COMPRISING BOMBARDIER INC MONTREAL AND NORTHROP CORP LOS ANGELES AND A PARTNERSHIP OF MORRISON KNUDSEN CORP BOISE IDAHO AND TWO DEFENSE CONTRACTORS LOCKHEED CORP CALABASAS CALIF AND GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT LAST WEEK ROCKWELL INTERNATIONAL CORP AND A UNIT OF TOKYO'S SUMITOMO CORP SAID THEY WERE ALSO SUBMITTING A BID BIDS FOR THE PROJECT ARE DUE TODAY 9301110113 930111 INTERNATIONAL WASHINGTON INSIGHT SOMALIA HEADACHE CAN UN TROOPS DO THE JOB WHEN US FORCES PULL OUT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL THE KEY QUESTION ABOUT THE FUTURE OF SOMALIA ISN'T WHETHER US FORCES WILL DISARM THE GUNMEN BUT WHETHER THE UNITED NATIONS CAN PRODUCE A CREDIBLE FORCE TO TAKE OVER FROM THE AMERICANS DURING THE MONTH SINCE THE MARINES WADED ASHORE MUCH ATTENTION HAS BEEN PAID TO THE DISCREPANCY BETWEEN THE US'S NARROW INTERPRETATION OF ITS MISSION TO SOMALIA AS SIMPLE CONVOY PROTECTION AND THE BROADER VIEW OF THE UNITED NATIONS BUT WITH THE PASSAGE OF TIME THAT GAP HAS LARGELY DISAPPEARED AS THE MARINES PUMPED IN TROOPS THEY FELT ABLE TO TAKE A MORE AGGRESSIVE STANCE TOWARD ARMED SOMALIS AS WAS POWERFULLY DEMONSTRATED BY LAST THURSDAY'S ARMORED ASSAULT ON ONE WARLORD'S MOGADISHU ARSENAL THOUGH IT HASN'T BEEN OFFICIALLY ANNOUNCED US RULES OF ENGAGEMENT NOW APPEAR TO BE TO SEIZE ALL HEAVY WEAPONS SUCH AS MORTARS AND ARTILLERY AND TO CONFISCATE LIGHT WEAPONS SUCH AS AK47 RIFLES WHENEVER THEY THREATEN US TROOPS BY THAT MEANS THE US HOPES TO QUIETLY DEGRADE THE POWER OF THE WARLORDS AND ALLOW NEW LESS VIOLENT POWERS TO EMERGE BUT THE US INTENDS BY THE END OF THIS MONTH TO BEGIN WITHDRAWING SOME OF ITS 22000 TROOPS AND START TURNING OVER THE MISSION TO A MULTINATIONAL FORCE PUT TOGETHER BY THE UN ABOUT 5000 US TROOPS MAY REMAIN AS PART OF THAT FORCE BUT THEY ARE EXPECTED TO BE TECHNICIANS AND SUPPORT PERSONNEL NOT COMBAT TROOPS IN ADDITION THE US MAY WELL KEEP A MARINE BATTALION FLOATING OFFSHORE AS A KIND OF HANDY SWAT TEAM THE QUESTION OF COURSE IS WHETHER ALL HELL WILL BREAK LOOSE AFTER THE US WITHDRAWS FROM THE FRONT LINES I THINK YOU CAN BE SURE THAT THE US ISN'T IN THIS JUST TO TURN AROUND ONE DAY AND SAY OK WE'RE GOING HOME' AND ALLOW IT TO COLLAPSE AMBASSADOR ROBERT OAKLEY THE SPECIAL US ENVOY TO SOMALIA SAID LAST WEEK BUT THERE IS VERY LITTLE EVIDENCE ON THE GROUND IN SOMALIA THAT UN FORCES WILL BE ABLE TO KEEP THE PEACE THE UN HAS MUCH EXPERIENCE IN PASSIVE PEACEKEEPING THAT IS KEEPING APART TWO SIDES THAT HAVE AGREED TO A CEASEFIRE BUT LITTLE IN THE NEW KIND OF AGGRESSIVE PEACEMAKING THAT US FORCES ARE PRACTICING IN SOMALIA SUCH WORK CALLS FOR ACTIVE PATROLLING IN A COMBATREADY STANCE THAT ISN'T THE STANCE OF THE 10000 NONUS TROOPS ACCOMPANYING THE AMERICANS MOST ARE BEING USED TO HOLD GROUND THE US ALREADY HAS SECURED THE MOROCCANS ARRIVED IN SOMALIA AND IMMEDIATELY ASKED TO BE PROVIDED WITH FOOD AND TENTS ACCORDING TO THEIR AMERICAN LIAISON OFFICER THE ITALIANS HAD TO BE TOLD TO SPREAD OUT THEIR CONVOY FOR SECURITY REASONS AND COULDN'T FIGHT THEIR WAY OUT OF A PAPER BAG US ARMY LT JIM WORTHINGTON TOLD THE ASSOCIATED PRESS THE MAJOR EARLY CONTRIBUTION OF THE SAUDI ARABIAN CONTINGENT WAS TO GUARD A GATE NEAR THE AIRPORT AND THREATEN TO FIRE ON ONE RETURNING MARINE PATROL BUT IT WAS THE PAKISTANI CONTINGENT BASED AT THE MOGADISHU AIRPORT THAT PROBABLY TURNED IN THE LEAST INSPIRING PERFORMANCE MANY SEEM TO SPEND MUCH OF THEIR TIME GAZING IN STUNNED AMAZEMENT AT OFFDUTY FEMALE AMERICAN SOLDIERS JOGGING BY IN SHORTS AND TSHIRTS A RARE SIGHT IN THE MUSLIM WORLD WHEN UN SECRETARY GENERAL BOUTROS BOUTROSGHALI WAS TRAPPED RECENTLY IN THE UN COMPOUND BY ANGRY DEMONSTRATORS THE COMMANDER OF THE PAKISTANI BATTALION COULDN'T BE LOCATED SO THE MARINES WERE ASKED TO COME TO THE RESCUE EVEN IF SUCH TROOPS WERE GIVEN THE SORT OF AGGRESSIVE RULES OF ENGAGEMENT THAT APPEAR NECESSARY TO MAINTAIN PEACE IN SOMALIA IT ISN'T CLEAR THEY WOULD BE CAPABLE OF FOLLOWING THEM IT'S BEEN A LONG TIME SINCE A UN FORCE HAS BEEN IN SUCH A TROUBLED SITUATION YOU HAVE TO THINK BACK TO THE CONGO IN THE 1960S SAYS RAY COPSON A SPECIALIST IN AFRICAN AFFAIRS AT THE CONGRESSIONAL RESEARCH SERVICE IN WASHINGTON EVEN BACK THEN HE NOTES THE RULES OF ENGAGEMENT WERE A BIG PROBLEM PROVOKING MUCH ANGRY CONTROVERSY AMONG UN MEMBERS IN ADDITION NOTES MR COPSON SUCH WORK IS VERY EXPENSIVE SO EVEN IF MR BOUTROSGHALI IS ABLE TO PUT TOGETHER A FORCE THAT DOESN'T COLLAPSE HE MAY WELL ASK PRESIDENTELECT CLINTON TO FUND A BIG CHUNK OF IT EVEN IF THE UN FIELDS A FORCE AS EFFECTIVE AS THE US PRESENCE HAS BEEN ARGUES OSMAN SULTAN ALI PUBLISHER OF THE HORN OF AFRICA JOURNAL THE MULTINATIONAL FORCE STILL WOULD BE TROUBLED A LOT OF SOMALIS DON'T LIKE THE UN PERIOD HE SAYS AND HE CONTINUES NO ONE EXPECTS THE UN FORCE TO BE ANYWHERE NEAR AS DISCIPLINED AND AGGRESSIVE AS THE US MARINES AND ARMY THEY WON'T GET MUCH RESPECT FROM THE SOMALIS AND SOME OF THE SOMALIS WILL START SHOOTING AT THEM SOMALIS JUST DON'T BELIEVE THE UN TROOPS WILL BE AS WILLING TO SHOOT AS THE AMERICANS ARE UN FORCES IN SOMALIA COULD WIND UP LOOKING AS HAPLESS AS THOSE IN BOSNIA WHO LAST FRIDAY WERE UNABLE TO PROTECT FROM ASSASSINATION A BOSNIAN OFFICIAL THEY WERE CONVEYING INSIDE AN ARMORED PERSONNEL CARRIER THE BETTER ALTERNATIVE MR ALI ARGUES WOULD BE FOR THE US TO ACCEPT THE NEED FOR A LONGER AMERICAN PRESENCE CONTINUE DISARMING THE WARLORDS AND BEGIN ESTABLISHING A NEW SOMALI POLICE FORCE THAT IS ABLE TO KEEP THE PEACE 9301110112 930111 COMPUTER FIRMS TO POST STRONG SALES GROWTH BUT MAKERS OF BIG SYSTEMS LIKELY TO REPORT LOSSES FOR THE FOURTH QUARTER BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MOST PERSONAL COMPUTER MAKERS WILL REPORT STRONG SALES GROWTH IN THE FOURTH QUARTER WHILE MAKERS OF LARGE SYSTEMS STRUGGLED WITH LOSSES AND DECLINING SALES ANALYSTS SAID INTERNATIONAL BUSINESS MACHINES CORP WHICH HAS LONG DOMINATED THE MARKET FOR MAINFRAME COMPUTERS HAS ALREADY WARNED INVESTORS IT MIGHT BARELY BREAK EVEN ON OPERATIONS IN THE QUARTER BEFORE PRETAX CHARGES OF AN ESTIMATED 7 BILLION MOST OF THE CHARGES WILL PAY FOR CONTINUED CAPACITY REDUCTIONS AND PLANNED CUTS OF 25000 EMPLOYEES THIS YEAR MOST ANALYSTS TOOK IBM AT ITS WORD AND SET ESTIMATES NEAR BREAKEVEN BEFORE CHARGES INCLUDING JAY STEVENS OF DEAN WITTER WHO ALSO SEES A BIG 88 FOURTHQUARTER REVENUE DECLINE TO 2003 BILLION MAINFRAMES JUST CAME APART DURING THE QUARTER MR STEVENS SAID AND HE WARNED THAT IBM COULD SLASH ITS DIVIDEND 50 TO 75 AFTER IBM'S DIRECTORS MEET JAN 26 RESULTS WILL BE REPORTED JAN A FEW ANALYSTS THINK THINGS COULD BE EVEN WORSE THAN IBM HAS DISCLOSED DAN MANDRESH OF MERRILL LYNCH SEES NO LETUP OF PRESSURE AND SAID THAT IF ANYTHING THE CYCLE IS STARTING TO FEED ON ITSELF HE SEES A FOURTHQUARTER OPERATING LOSS AS WIDE AS 50 CENTS A SHARE IN THE YEAREARLIER QUARTER IBM BASED IN ARMONK NY ENJOYED STRONG RESULTS BECAUSE OF AN UPSWING IN A MAINFRAME PRODUCT CYCLE BUT POSTED A LOSS AFTER PRETAX RESTRUCTURING CHARGES OF 34 BILLION THE LOSS WAS 138 BILLION OR 242 A SHARE ON REVENUE OF 2208 BILLION DIGITAL EQUIPMENT CORP THE NATION'S SECONDLARGEST COMPUTER MAKER WILL REPORT A LOSS FOR ITS SECOND QUARTER ENDED DEC 26 OF 1145 MILLION OR 90 CENTS A SHARE ON REVENUE OF 347 BILLION FORECAST SHAO WANG OF SMITH BARNEY HARRIS UPHAM GEORGE ELLING OF MERRILL LYNCH IS LESS OPTIMISTIC PREDICTING A 1ASHARE LOSS IN THE YEAREARLIER SECOND QUARTER DIGITAL OF MAYNARD MASS HAD A LOSS OF 1552 MILLION OR 125 A SHARE AFTER AN ACCOUNTING RESTATEMENT ON REVENUE OF 347 BILLION DIGITAL ALSO WILL DISCLOSE THE PROGRESS IT MADE IN THE QUARTER CUTTING ITS WORK FORCE EXECUTIVES SAY THE PAYROLL MUST BE CUT TO 85000 OR 90000 OVER THE NEXT YEAR OR SO FROM 108500 LAST SEPT 30 A SPOKESWOMAN SAID LAST WEEK THAT DISMISSALS DURING THE QUARTER WOULD TOTAL 5000 TO 6000 BEFORE ATTRITION AND OTHER DEPARTURES WHICH TYPICALLY RANGE FROM 200 TO 1000 A QUARTER ANALYSTS EXPECT APPLE COMPUTER INC TO REPORT SHARPLY HIGHER REVENUE BUT DIFFER ON THE EFFECT OF PRICE CUTS ON PROFIT MARGINS MARY MEEKER OF MORGAN STANLEY SEES A 13 DECLINE IN NET INCOME TO 145 MILLION OR 120 A SHARE FOR APPLE'S FIRST QUARTER ENDED DEC 31 ON SHARPLY HIGHER REVENUE OF 201 BILLION BRUCE LUPATKIN OF HAMBRECHT & QUIST IS MORE OPTIMISTIC FORECASTING NET OF 145 A SHARE ON REVENUE OF 214 BILLION IN THE YEAREARLIER FIRST QUARTER NET WAS 166 MILLION OR 136 A SHARE ON REVENUE OF 186 BILLION MS MEEKER SAID EARNINGS WERE LED BACK BY CAPACITY LIMITATIONS IN THE FACE OF OVERWHELMING DEMAND FOR APPLE'S POWERBOOK PORTABLE AND ITS MORE POWERFUL QUADRA DESKTOP MODELS SHE SAID ORDER BACKLOG AT NOV 27 WAS 950 MILLION UP SHARPLY FROM YEAREARLIER 483 MILLION COMPAQ COMPUTER CORP HOUSTON IS EXPECTED TO SHOW A SIMILAR PATTERN OF PROFIT GROWTH LAGGING STRONGER REVENUE GROWTH TODD BAKAR OF HAMBRECHT & QUIST FORECAST NET INCOME OF 77 MILLION OR 96 CENTS A SHARE ON REVENUE OF 133 BILLION AN ESTIMATE HE SAYS IS CONSERVATIVE MORGAN STANLEY'S MS MEEKER SAID THAT WHILE THE WORST IS OVER IN THE PC PRICE WAR COMPAQ'S PROFIT MARGINS WILL CONTINUE UNDER PRESSURE SHE ESTIMATED THAT NET ROSE 9 IN THE DECEMBER QUARTER TO 72 MILLION ON A 53 JUMP IN REVENUE TO 133 BILLION LAST YEAR THE HOUSTON COMPUTER MAKER REPORTED NET OF 666 MILLION OR 77 CENTS A SHARE ON REVENUE OF 873 MILLION STRONG PERSONAL COMPUTER SALES HAVE BENEFITED HEWLETTPACKARD CO WHICH IS THE MARKET LEADER IN PC LASER PRINTERS THE PALO ALTO CALIF MAKER OF COMPUTERS AND INSTRUMENTS WILL REPORT NET OF 239 MILLION OR 95 CENTS A SHARE ON REVENUE OF 448 BILLION IN ITS FIRST QUARTER ENDING JAN 31 ESTIMATED BARRY WILLMAN OF SANFORD C BERNSTEIN IN THE YEAREARLIER FIRST QUARTER NET INCOME WAS 302 MILLION OR 119 A SHARE ON REVENUE OF 386 BILLION MR WILLMAN EXPECTS SUN MICROSYSTEMS INC TO REPORT A SLIGHT DECLINE IN NET INCOME TO 42 MILLION OR 40 CENTS A SHARE ON REVENUE OF 103 BILLION HE SAID THE MOUNTAIN VIEW CALIF MAKER OF COMPUTER WORKSTATIONS WAS HELD BACK BY LIMITED SUPPLIES OF A CHIP NEEDED FOR ITS HIGHEND WORKSTATION LINE A SITUATION THAT WAS RESOLVED TOO LATE IN THE QUARTER TO HELP HE EXPECTS A STRONG MARCH QUARTER AS THE COMPANY WORKS OFF ITS LARGE ORDER BACKLOG FOR THESE HIGHER PROFIT MARGIN PRODUCTS IN THE YEAREARLIER QUARTER SUN EARNED 47 MILLION OR 47 CENTS A SHARE ON REVENUE OF 909 MILLION 9301110111 930111 EPA IN APPARENT SNUB OF CLINTON ACTS ON CONTROVERSIAL WASTE INCINERATOR BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY IN APPARENT DEFIANCE OF THE COMING CLINTON ADMINISTRATION WILL ALLOW A CONTROVERSIAL HAZARDOUSWASTE INCINERATOR TO MOVE ONE STEP CLOSER TO COMMERCIAL OPERATION THE INCINERATOR SITUATED IN EAST LIVERPOOL OHIO IS OWNED BY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF THE SWISS COMPANY VON ROLL LTD IN AN UNUSUAL MOVE FOR A VICE PRESIDENTELECT ALBERT GORE SAID IN A STATEMENT LAST MONTH THAT UNTIL CERTAIN QUESTIONS ABOUT THE INCINERATOR WERE ANSWERED THE CLINTONGORE ADMINISTRATION WOULDN'T ISSUE A TEST BURN PERMIT FOR THE PLANT A TEST BURN IS A SEVENDAY TEST CONDUCTED TO DETERMINE WHETHER AN INCINERATOR MEETS FEDERAL POLLUTION STANDARDS DESPITE MR GORE'S INSISTENCE THAT THE CLINTON ADMINISTRATION WASN'T PREPARED TO GRANT THE TRIAL BURN THE BUSH ADMINISTRATION'S EPA APPROVED IT FRIDAY A SPOKESMAN FOR DEPARTING EPA ADMINISTRATOR WILLIAM REILLY SAID MR REILLY WOULDN'T BE AVAILABLE FOR COMMENT ON THE MATTER ENVIRONMENTAL ACTIVISTS HAVE OPPOSED THE PLANT'S OPERATION BECAUSE OF A VARIETY OF SAFETY CONSIDERATIONS INCLUDING THE PLANT'S LOCATION 1100 FEET FROM AN ELEMENTARY SCHOOL AND HAVE CHARGED THAT THE EPA HASN'T FOLLOWED PROPER PROCEDURES IN ITS PREVIOUS REGULATORY DECISIONS REGARDING THE PLANT THE GENERAL ACCOUNTING OFFICE AT THE REQUEST OF MR GORE AND SEVERAL OTHER SENATORS RECENTLY BEGAN AN INVESTIGATION OF THE MATTER NEITHER MR GORE NOR THE NOMINEE FOR EPA ADMINISTRATOR CAROL BROWNER COULD BE REACHED FOR COMMENT ON THE MATTER BUT MARLA ROMASH A SPOKESWOMAN FOR THE CLINTON TRANSITION TEAM SAID THE APPROVAL DOESN'T CHANGE MR GORE'S BELIEF THAT THERE ARE QUESTIONS THAT NEED TO BE ANSWERED AND WE HOPE WILL BE ANSWERED BY THE GAO INVESTIGATION UNDER THE TERMS GRANTED BY THE EPA'S REGIONAL OFFICE IN CHICAGO THE INCINERATOR MAY NOT BEGIN COMMERCIAL OPERATION UNTIL IT CAN DEMONSTRATE THAT IT HAS MET CERTAIN CRITERIA CONCERNING ITS EMISSIONS THAT PROCESS IS EXPECTED TO TAKE AT LEAST A WEEK VIRTUALLY GUARANTEEING THAT APPROVAL FOR FULL OPERATION WON'T COME BEFORE BILL CLINTON ASSUMES OFFICE IN ADDITION EVEN AFTER IT BEGINS COMMERCIAL OPERATION THE COMPANY WON'T RECEIVE PERMISSION TO OPERATE PERMANENTLY UNTIL THE TEST BURN RESULTS ARE FULLY ANALYZED A PROCESS THAT TAKES ROUGHLY SIX MONTHS FOR THE MOMENT THE EPA'S CHICAGO OFFICE IS UNCERTAIN WHAT ACTION THE CLINTON ADMINISTRATION WILL TAKE WE HAVE NOT HAD ANY DIRECT COMMUNICATION WHATSOEVER WITH THE INCOMING ADMINISTRATION ANNE ROWAN AN EPA SPOKESWOMAN IN CHICAGO SAID FRIDAY WE ARE VERY VERY EAGER TO DISCUSS THIS MATTER WITH THEM DIRECTLY FOR HER PART MS ROMASH SAID ONLY THAT THE CLINTON ADMINISTRATION WILL FOLLOW BOTH THE LETTER AND THE SPIRIT OF THE LAW AS REGARDS THE INCINERATOR CAROL COOKERLY A SPOKESWOMAN FOR VON ROLL AMERICA INC CALLED THE EPA DECISION LONG OVERDUE AND EXPRESSED CONFIDENCE THAT THE COMPANY WOULD BE ABLE TO ASSUAGE ANY FEARS AND CONCERNS THE CLINTON ADMINISTRATION MAY HAVE ABOUT THE PLANT BUT TERRI SWEARINGEN A COMMUNITY ACTIVIST WHO LIVES NEAR AND HAS FOUGHT AGAINST THE PLANT TERMED THE APPROVAL THE FINAL ACT OF AN ARROGANT REAGAN AND BUSH EPA AND PREDICTED THAT THE CLINTON ADMINISTRATION WOULD REVERSE THE DECISION THIS WAS A SLAP IN THE FACE SHE SAID I DON'T KNOW ANY POLITICIAN WHO WILL BE SLAPPED IN THE FACE AND NOT SLAP BACK 9301110110 930111 DEUTSCHE BABCOCK'S CHAIRMAN PREDICTS TOUGH TIMES FOR THE GERMAN ECONOMY BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL OBERHAUSEN GERMANY IN JUST 2 1/2 YEARS CHAIRMAN HEYO SCHMIEDEKNECHT HAS ORCHESTRATED A CORPORATE RESTRUCTURING AT DEUTSCHE BABCOCK AG PROPELLING THE TROUBLED GERMAN ENGINEERING AND MACHINERY CONCERN BACK INTO THE BLACK BUT NOW MR SCHMIEDEKNECHT FACES A BATTLE AGAINST FOES MORE FORMIDABLE THAN CORPORATE MISMANAGEMENT HE CITES WHAT HE SEES AS THE ONSET OF THE WORST RECESSION IN GERMANY SINCE WORLD WAR II THE NEED FOR MAJOR STRUCTURAL REFORM IN GERMAN INDUSTRY AND THE POLITICAL BUNGLING OF EASTERN GERMANY'S RECONSTRUCTION I FEAR THAT GERMANY IS FALLING INTO A VERY DIFFICULT RECESSION MORE SEVERE THAN ANY WE HAVE HAD SINCE THE CREATION OF THE DEUTSCHE MARK STEEL IS BUST MACHINERY IS BUST THE MACHINETOOLS INDUSTRY IS COMPLETELY SHATTERED AND THE AUTO INDUSTRY IS FALLING ON ITS KNEES SAID MR SCHMIEDEKNECHT THERE WILL HAVE TO BE A FUNDAMENTAL RESTRUCTURING IN GERMAN INDUSTRY BECAUSE THE ENTIRE STRUCTURE IS NO LONGER MAINTAINABLE WE ARE TOO EXPENSIVE HE SAID AS A RESULT MR SCHMIEDEKNECHT REALIZES THERE ARE STILL SIGNIFICANT CHANGES THAT MUST BE MADE AT DEUTSCHE BABCOCK EVEN THOUGH THE COMPANY'S REORGANIZATION HAS BEEN ESSENTIALLY COMPLETED OUTLINING HIS STRATEGY IN AN INTERVIEW MR SCHMIEDEKNECHT LAID OUT A PROGRAM THAT COULD EASILY SERVE AS A PRIMER FOR GERMAN INDUSTRY AS A WHOLE MOVE PRODUCTION OF SIMPLE COMPONENTS OUT OF GERMANY IN FAVOR OF EASTERN EUROPE COLLABORATE WITH FORMER RIVALS TO SAVE MONEY AND INCREASINGLY LOOK FOR MARKETS OUTSIDE GERMANY NONE OF THESE MOVES WILL PREVENT THE ECONOMIC SLOWDOWN IN GERMANY FROM DEPRESSING DEUTSCHE BABCOCK'S EARNINGS IN FISCAL 1993 HOWEVER AFTER PRETAX PROFIT ESTIMATED AT 110 MILLION MARKS TO 130 MILLION MARKS 68 MILLION TO 80 MILLION IN FISCAL 1992 ENDED SEPT 30 YIELDING A NET PROFIT OF ABOUT 76 MILLION MARKS MR SCHMIEDEKNECHT PROJECTS PRETAX PROFIT OF ONLY 30 MILLION MARKS TO 60 MILLION MARKS FOR THE CURRENT FISCAL YEAR SALES WERE ABOUT 10 UNDER PLAN IN THE FISCAL 1992 COMING IN AT 76 BILLION MARKS COMPARED WITH EXPECTATIONS OF 85 BILLION MARKS BUT MR SCHMIEDEKNECHT SAYS WE ARE CERTAIN WE WILL SURVIVE THE RECESSION BETTER THAN THE OTHERS A CONTINUING REDUCTION OF LOSSES AT THE COMPANY'S RESTRUCTURED ENERGY AND ENVIRONMENTAL TECHNOLOGY UNIT WILL SOFTEN THE EFFECTS OF FALLING EARNINGS FROM MACHINERY OPERATIONS MEANWHILE DEUTSCHE BABCOCK'S EXPOSURE TO EASTERN EUROPE PARTICULARLY EASTERN GERMANY WHERE THE COMPANY HAS SOME TWO BILLION MARKS IN PENDING ORDERS TO BUILD NEW POWER PLANTS WILL PROVIDE AN ANTICYCLICAL MOTOR FOR THE NEXT FEW YEARS MR SCHMIEDEKNECHT SAYS THE ONLY SNAG IN THAT PLAN IS THAT GERMAN BUREAUCRACY IS PREVENTING THE MOTOR FROM BEING STARTED BILLIONS OF MARKS OF INVESTMENT ARE BEING HELD UP BECAUSE IT'S NOT BEING HANDLED PROPERLY BY POLITICIANS MR SCHMIEDEKNECHT SAID CHARGING THAT RED TAPE HAS BEEN HOLDING UP APPROVAL FOR THE ENERGY PROJECTS SINCE 1990 SOME 14 BILLION MARKS IN DIRECT INVESTMENT AND A FURTHER 40 BILLION MARKS IN RELATED INVESTMENT IS ON ICE BECAUSE OF THE BUREAUCRATIC DELAY HE SAID MR SCHMIEDEKNECHT'S PREDICTION OF 30 MILLION MARKS TO 60 MILLION MARKS IN PRETAX PROFIT FOR FISCAL 1993 IS BASED ON THE ASSUMPTION THAT APPROVAL FOR THE EASTERN EUROPE ENERGY PROJECTS COMES THROUGH TOWARD THE END OF THE YEAR IF APPROVAL COMES EARLIER RESULTS WILL BE SMASHINGLY BETTER BUT IF IT COMES LATER WE WILL HAVE SOME REAL PROBLEMS HE SAID POURING HIMSELF HIS FOURTH CUP OF COFFEE DURING A MORNING INTERVIEW MR SCHMIEDEKNECHT NOTES WITH ANNOYANCE THAT UNTIL BONN GIVES THE GREEN LIGHT HIS ENGINEERS AND PROJECT MANAGERS HAVE TO SIT AROUND WITH NOTHING TO DO THE 53YEAROLD CHAIRMAN REFLECTS ON THE FURTHER STREAMLINING AND COSTSAVINGS THAT MUST BE ACHIEVED IN THE COMPANY'S BUSINESSES ESPECIALLY AT THE ENERGY AND ENVIRONMENTAL TECHNOLOGY UNIT DEUTSCHE BABCOCK ENERGIE & UMWELTTECHNIK AG THE UNIT THE COMPANY'S MAIN PROBLEM CHILD WAS CHIEFLY RESPONSIBLE FOR A 1990 LOSS OF 80 MILLION MARKS BROUGHT TO DEUTSCHE BABCOCK IN 1990 AS PART OF A MANAGEMENT SHAKEUP MR SCHMIEDEKNECHT UNDERTOOK DEEP RATIONALIZATION MEASURES ESPECIALLY AT DBE CONCENTRATING THE CORE BOILERMAKING OPERATIONS AT ONLY ONE OF THE FOUR SITES SLASHING CAPACITY 60 AND ELIMINATING ABOUT 2500 JOBS MR SCHMIEDEKNECHT SAID AN ADDITIONAL 2000 JOBS WILL BE SHED THIS YEAR THROUGHOUT THE CORPORATION BUT BEYOND SIMPLE STREAMLINING THERE MUST BE MORE ADJUSTMENTS IN THE STRUCTURE IN GERMANY WE WILL HAVE TO CLOSE FACILITIES THAT MAKE SIMPLER COMPONENTS WE PLANNED TO CLOSE THEM EVENTUALLY ANYWAY BUT NOW BECAUSE OF THE RECESSION THE MOVES WILL JUST HAVE TO COME FASTER MR SCHMIEDEKNECHT SAID NOTING THAT COSTS AT US COMPETITORS ARE 20 BELOW THOSE AT DEUTSCHE BABCOCK IRONICALLY GERMAN REUNIFICATION IS ACTUALLY SPEEDING THE PROCESS OF TRANSFERRING JOBS OUT OF GERMANY AT DEUTSCHE BABCOCK PRIOR TO UNIFICATION THE GERMAN GOVERNMENT USED TO OFFER COMPANIES SPECIAL INCENTIVES TO LOCATE OPERATIONS IN BERLIN THE STRIKING OF THOSE SUBSIDIES SINCE REUNIFICATION HAS LED TO A 20 MILLION MARK DROP IN PROFIT FOR DEUTSCHE BABCOCK'S BERLIN OPERATIONS A LOSS THAT MR SCHMIEDEKNECHT WILL HAVE TO COMPENSATE FOR BY SHRINKING THE BERLIN OPERATIONS AND SOURCING OUT MORE PRODUCTS FROM THE EAST 9301110109 930111 TECHNOLOGY & HEALTH APPLE INTRODUCES A WORKING MODEL OF HANDHELD PC BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS APPLE COMPUTER INC UNPEELED A WORKING MODEL OF ITS MUCHAWAITED NEWTON A HANDHELD COMPUTER THAT COMBINES ASPECTS OF COMPUTERS TELECOMMUNICATIONS AND CONSUMER ELECTRONICS APPEARING AT THE WINTER CONSUMER ELECTRONICS SHOW HERE AN APPLE EXECUTIVE GAVE ONE OF THE FIRST WORKING DEMONSTRATIONS OF NEWTON WHICH APPLE REFERS TO AS A PERSONAL DIGITAL ASSISTANT WHILE APPLE HAS KEPT DETAILS ABOUT NEWTON TIGHTLY UNDER WRAPS IT SAID FRIDAY THE FIRST MACHINE IN THE NEWTON FAMILY WOULD SHIP TO DEALERS AROUND MIDYEAR AND RETAIL FOR WELL UNDER 1000 ALSO AT THE DEMONSTRATION SHARP CORP EXECUTIVES DISPLAYED THE COMPANY'S OWN HANDHELD MACHINE WHICH USES A VERSION OF NEWTON TECHNOLOGY THE SHARP VERSION OF NEWTON WILL ALSO SHIP ABOUT THE SAME TIME THE COMPETITION IS ALREADY HEATING UP IN THE FLEDGLING MARKET APPLE'S DEMONSTRATION CAME THE DAY AFTER CASIO COMPUTER CO AND TANDY CORP DEMONSTRATED A SIMILAR HANDHELD COMPUTER CODENAMED ZOOMER THAT WILL COMPETE DIRECTLY WITH NEWTON ZOOMER DUBBED A PERSONAL INFORMATION PROCESSOR WILL BE SHIPPED THIS SUMMER AND TANDY CHAIRMAN JOHN V ROACH SAID IT WOULD COST A LOT CLOSER TO 500 THAN 1000 GASTON BASTIAENS AN APPLE VICE PRESIDENT DEMONSTRATED HOW THE NEWTON CAN SEND A PAPERLESS FAX READ HANDWRITING RECOGNIZE GEOMETRIC FIGURES AND FOLLOW SIMPLE WORD COMMANDS AT LAST YEAR'S SUMMER ELECTRONICS SHOW APPLE DEMONSTRATED NEWTON'S SOFTWARE BUT NOT THE MACHINE ITSELF RECENTLY INDUSTRY EXECUTIVES HAVE QUESTIONED WHETHER APPLE COULD DELIVER A PRODUCT THIS YEAR THAT FULFILLED THE COMPANY'S EARLY PROMISE OF WIDERANGING CAPABILITIES AND EASY USE AT APPLE'S DEMONSTRATION MR BASTIAENS SAID APPLE HAD SIGNED SEVERAL AGREEMENTS WITH COMPANIES TO CREATE NEW APPLICATIONS FOR NEWTON PUBLISHER RR DONNELLEY & SONS WILL DEVELOP A RANGE OF TRAVELRELATED SERVICES USING A DIGITAL LIBRARY OF STREETLEVEL MAPS ALONG WITH A VARIETY OF TRAVEL DATA FOR THE US NEWTON FOR EXAMPLE COULD BE USED TO LOCATE RESTAURANTS LOCAL SIGHTS AND OTHER TRAVEL INFORMATION ON A MAP WHILE ALSO GIVING ACCURATE DIRECTIONS FROM ANY STARTING POINT MOTOROLA INC WILL WORK WITH APPLE TO DEVELOP A RADIOBASED RECEIVER SO NEWTON CAN RECEIVE MESSAGES AND INFORMATION REGARDLESS OF WHERE THE USER MIGHT BE LOCATED AMERICA ONLINE INC WHICH PROVIDES SUBSCRIPTIONBASED ONLINE COMPUTER SERVICES WILL DEVELOP ONLINE DATA TECHNOLOGIES FOR SEVERAL APPLE PRODUCTS INCLUDING NEWTON AMERICA ONLINE CURRENTLY OFFERS SERVICES SUCH AS ELECTRONIC MAIL CONFERENCING NEWS AND STOCK QUOTES AFTER THE FIRST NEWTON IS SHIPPED MR BASTIAENS SAID OTHER NEWTON FAMILY PRODUCTS WILL BE INTRODUCED AIMED AT CORPORATE PROFESSIONAL AND CONSUMER MARKETS APPLE HAS HAD INTEREST FROM MAJOR CORPORATIONS IN THE NEWTON LINE AND MR BASTIAENS SAID THAT IN THE PAST YEAR APPLE HAS BEEN DEVELOPING VERSIONS OF NEWTON WITH SPECIAL APPLICATIONS TAILORED TO INDIVIDUAL COMPANIES IN VARIOUS INDUSTRIES SUCH AS PHARMACEUTICAL LEGAL AUTOMOTIVE AND MEDICAL 9301110108 930111 WHO'S NEWS SUNBEAMOSTER CO OUSTS KAZARIAN FROM 3 TOP POSTS BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL SUNBEAMOSTER CO A PROVIDENCE RI APPLIANCE MAKER SAID IT DISMISSED PAUL KAZARIAN ITS CHAIRMAN PRESIDENT AND CHIEF OPERATING OFFICER MR KAZARIAN HAD LOST THE CONFIDENCE OF THE BOARD SAID A COMPANY SPOKESMAN WHO DECLINED TO ELABORATE HE ADDED THAT COMPANY OFFICIALS WEREN'T AVAILABLE FOR COMMENT REACHED AT HIS HOME IN PROVIDENCE MR KAZARIAN 37 YEARS OLD SAID HE WAS TOLD OF THE BOARD'S DECISION AT 11 PM SATURDAY BUT WASN'T GIVEN AN EXPLANATION THE COMPANY'S FINANCIAL PERFORMANCE MR KAZARIAN SAID WAS STRONG IT WENT PUBLIC AT 1250 A SHARE IN AUGUST AND ITS STOCK CLOSED FRIDAY AT 1675 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE THIRD QUARTER SUNBEAMOSTER EARNED 119 MILLION OR 14 CENTS A SHARE UP 41 FROM THE YEAR EARLIER CHARLES THAYER 48 A BOARD MEMBER AND INVESTOR WAS NAMED INTERIM CHAIRMAN ROBERT SETRAKIAN 30 VICE PRESIDENT AND TREASURER WAS NAMED CHIEF FINANCIAL OFFICER IN 1990 MR KAZARIAN WAS ONE OF A GROUP OF INVESTORS THAT BOUGHT OUT THE CREDITORS OF SUNBEAM'S PREDECESSOR COMPANY PITTSBURGHBASED ALLEGHENY INTERNATIONAL WHICH WAS MIRED IN CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS STEINHARDT PARTNERS AND THE MUTUAL SERIES OF MUTUAL FUNDS PROVIDED ALMOST ALL OF THE CAPITAL MR KAZARIAN'S JAPONICA PARTNERS PROVIDED THE NEW MANAGEMENT TEAM THE THREE PARTIES' INVESTMENT 148 MILLION IN THE FORM OF COMMON STOCK AND 84 MILLION IN PREFERRED STOCK THE PUBLIC OFFERING RAISED 236 MILLION WHILE THEY RETAINED 77 OF THE STOCK ANOTHER DIRECTOR RODERICK HILLS WAS APPOINTED TO HEAD A SEARCH COMMITTEE TO SELECT A NEW PRESIDENT A NEW OFFICE OF THE PRESIDENT WAS ESTABLISHED THE COMPANY SAID IT WILL INCLUDE DIRECTOR MICHAEL LEDERMAN 39 THE COMPANY'S SECRETARY AND GENERAL COUNSEL JAMES CLEGG 39 WHO HEADS THE HOUSEHOLD PRODUCTS DIVISION RICHARD DAVIDSON 44 HEAD OF THE OUTDOOR PRODUCTS GROUP AND JAMES THOMAS 53 HEAD OF THE SPECIALTY PRODUCTS GROUP 9301110107 930111 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 1/16 HIGH 2 3/4 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 315 30 TO 59 DAYS 318 60 TO 89 DAYS 320 90 TO 119 DAYS 325 120 TO 149 DAYS 328 150 TO 179 DAYS 330 180 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 328 30 DAYS 329 60 DAYS 331 90 DAYS CERTIFICATES OF DEPOSIT 278 ONE MONTH 284 TWO MONTHS 288 THREE MONTHS 3 SIX MONTHS 331 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 320 ONE MONTH 330 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 312 60 DAYS 317 90 DAYS 322 120 DAYS 328 150 DAYS 330 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 3/8 3 1/2 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 9/16 3 7/16 FIVE MONTHS 3 5/8 3 1/2 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 7/16 THREE MONTHS 3 5/8 SIX MONTHS 4 1/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 4 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 315 13 WEEKS 328 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 789 60 DAYS 797 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 785 60 DAYS 794 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 560 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 9301110106 930111 BANK OF BOSTON SAYS CONTINUES TO SHIFT TO SMALLER LOANS BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON BANK OF BOSTON CORP CONTINUES TO SHIFT FROM LARGER LOANS TO SMALLBUSINESS LOANS IN NEW ENGLAND THOUGH OVERALL SHRINKAGE OF THE BANK'S DOMESTIC LOAN PORTFOLIO HAS STOPPED THINGS HAVE BEGUN TO STABILIZE IN THE PAST MONTH OR TWO WITH THE DELEVERAGING BY LARGERLOAN CUSTOMERS BEING OFFSET BY NEW LOANS MOSTLY TO SMALL BUSINESSES SAID ROBERT MAHONEY EXECUTIVE VICE PRESIDENT FOR NEW ENGLAND CORPORATE BANKING MR MAHONEY'S COMMENTS WERE IN CONNECTION WITH BANK OF BOSTON'S ANNOUNCEMENT THAT IT WILL DOUBLE A LOAN PROGRAM FOR SMALL BUSINESSES TO 6 BILLION THE PROGRAM LAUNCHED IN MAY 1992 WHEN THE BANK ANNOUNCED IT WOULD LEND 3 BILLION OVER TWO YEARS TO NEW ENGLAND BUSINESSES HAS PROCEEDED FASTER THAN EXPECTED THE BANK SAID WITH 2 BILLION IN LOAN COMMITMENTS MADE IN THE PAST SEVEN MONTHS THE RESPONSE WAS SO STRONG TO THE PROGRAM THAT WE ARE READY TO DO MORE SAID CHARLES K GIFFORD THE BANK'S PRESIDENT TRADITIONALLY SMALLBUSINESS LENDING WAS NOT A BIG PART OF WHAT BANK OF BOSTON WAS ABOUT BUT THAT'S CHANGING NOW WE'RE MAKING A STRATEGIC STATEMENT THAT WE'LL INVEST IN NEW ENGLAND COMPANIES AND GROW WITH THE REGION THE BANK EXPECTS TO COMPLETE THE FIRST 3 BILLION PHASE OF ITS LENDING PROGRAM BY SPRING AND BEGIN ON THE NEXT 3 BILLION SAID MR GIFFORD THOUGH HE WOULDN'T PREDICT WHEN THE BANK EXPECTED TO COMPLETE THE SECOND PHASE MORE BROADLY THOUGH THE BANK'S TOTAL COMMERCIAL AND INDUSTRIAL LOANS IN THE US DECLINED STEADILY TO 1385 BILLION IN 1992'S SECOND QUARTER FROM A PEAK OF 197 BILLION IN THE FALL OF 1989 THOUGH SUCH LOANS ROSE 150 MILLION IN THE THIRD QUARTER TO 1397 BILLION THAT LEVEL IS STILL 688 MILLION BELOW THE TOTAL FOR 1991'S THIRD QUARTER WITHOUT THE SMALLBUSINESSLOAN INITIATIVE THE TOTAL PORTFOLIO WOULD STILL BE IN DECLINE SAID MR MAHONEY THE STABILIZING IN TOTAL LOANS IS HAPPENING WITH A LOT OF BANKS WHICH SHOWS THAT THE CREDIT CRUNCH MAY BE EASING SOMEWHAT SAID FRANK BARCOCY AN ANALYST WITH ADVEST INC 9301110105 930111 REDBOOK SEES RETAIL SALES UP 45 IN 1ST QUARTER NEW YORK ED JOHNSON DIRECTOR OF THE JOHNSON REDBOOK MARKET REPORT ON THE RETAIL TRADE PROJECTS 4 TO 5 GROWTH IN FIRSTQUARTER GROSS SALES EARLIER MR JOHNSON PREDICTED A 3 TO 4 GROWTH IN SALES FOR THE FIRST QUARTER THE JOHNSON REDBOOK SURVEY TALLIES GROSS SALES FROM A SAMPLE 25 STORES IN THE CHAIN DEPARTMENT AND DISCOUNT CATEGORIES THE SURVEY DOES NOT PROVIDE THE MORE COMMON MEASURE OF SAMESTORE COMPARISONS MR JOHNSON PREDICTED A RETAIL SALES INCREASE OF MORE THAN 9 IN DECEMBER THE REDBOOK SURVEY REPORTED INCREASES OF 109 FOR THE MONTH THE SURVEY WARNED THAT FIRSTQUARTER SALES COMPARISONS COULD SUFFER FROM BLOATED CONSUMER CREDIT CARDS AND STRONG SALES FIGURES FROM A YEAR AGO 9301110104 930111 REINVENT THE POST OFFICE BY WILLIAM R CUMMINGS LAST WEEK'S FACEOFF BETWEEN PRESIDENT BUSH AND THE POSTAL SERVICE BOARD OF GOVERNORS IS JUST THE LATEST EVIDENCE OF THE NEED FOR AN OVERHAUL IN MAIL DELIVERY AN ATTEMPT AT SUCH AN OVERHAUL BEGAN LAST JULY WHEN MARVIN T RUNYON FORMER CHAIRMAN OF THE TENNESSEE VALLEY AUTHORITY AND EXBOSS OF NISSAN USA BECAME POSTMASTER GENERAL IN HIS FIRST 120 DAYS HE ELIMINATED TWO LAYERS OF TOP MANAGEMENT WITH THE HELP OF EARLY RETIREMENTS AND INCENTIVES MORE THAN 47000 EMPLOYEES FROM LETTER CARRIERS TO ASSISTANT POSTMASTERS GENERALS HAVE LEFT THE POSTAL SERVICE INCLUDING ME A REORGANIZATION HAS CHANGED THE STRUCTURE AT HEADQUARTERS AND IN THE FIELD AND THERE HAS BEEN AN EXTENSIVE REVIEW OF CAPITAL INVESTMENTS IN PLANT AND EQUIPMENT IT WON'T BE ENOUGH EVEN IF THE POSTAL SERVICE MANAGES TO ELIMINATE A PROJECTED 2 BILLION DEFICIT IN FISCAL 1993 AND HOLD OFF A RATE INCREASE FOR ALL OF 1994 IT STILL WILL FACE SERIOUS CHALLENGES THAT NECESSITATE STRUCTURAL CHANGE IN THE BASIC LAW GOVERNING THE POSTAL SERVICE THE POSTAL REORGANIZATION ACT OF 1970 REMOVED THE POSTMASTER GENERAL FROM THE CABINET AND SET UP THE POSTAL SERVICE AS A SELFSUPPORTING INDEPENDENT ESTABLISHMENT OF THE EXECUTIVE BRANCH DIRECTED BY A PRESIDENTIALLY APPOINTED BOARD OF GOVERNORS THAT IS SUPPOSED TO FUNCTION LIKE A PRIVATE CORPORATION'S BOARD A CERTAIN AMOUNT OF CONFUSION HAS REIGNED EVER SINCE AT THE HEART OF THE CONTINUING DEBATE ABOUT THE POSTAL SERVICE IS THE FACT THAT IT IS BEING ASKED TO BRIDGE THE GAP BETWEEN THE PRIVATE AND PUBLIC MODELS IN OUR ECONOMY HOW ARE WE TO REGARD A GOVERNMENT ENTITY THAT IS SUPPOSED TO DELIVER A SELFSUPPORTING COMMERCIALLIKE SERVICE AS A BASIC RIGHT OF CITIZENSHIP EMBEDDED IN THE CONSTITUTION THE AVERAGE CITIZEN DOES INDEED VIEW POSTAL DELIVERY AS A RIGHT HE SPENDS COMPARATIVELY LITTLE FOR STAMPS AND ASSUMES THE POSTAL SERVICE IS PART OF WHAT LITTLE HE GETS FOR HIS TAX DOLLARS BUSINESS CUSTOMERS HOWEVER ARE ACUTELY AWARE THAT THE POSTAL SERVICE IS SUPPOSED TO BE SELFSUPPORTING AND THAT THAT IS REFLECTED IN THE PRICE OF COMMERCIAL POSTAGE THUS IS SET UP THE CLASSIC CLASH BETWEEN THE CONSUMERS OF A PUBLIC SERVICE AND THOSE WHO PAY FOR IT INCREASINGLY THE SENDERS OF COMMERCIAL MAIL WANT TO BE ABLE TO PAY ONLY FOR THOSE PARTS OF THE SYSTEM THEY USE AND TO SEEK ALTERNATIVES THAT ARE MORE ECONOMICAL MORE EFFICIENT OR BETTER SUITED TO THEIR NEEDS THE PUBLIC SERVICE IDEAL OF UNIVERSAL MAIL SERVICE AT A LOW UNIFORM PRICE IS UNDER CONSTANT ECONOMIC PRESSURE FOR MORE THAN 20 YEARS POSTAL SERVICE MANAGERS HAVE TRIED TO BALANCE SERVICE AND COSTS FINANCIAL RESULTS UNTIL THE LATE 1980S TENDED TO EVEN OUT OVER TIME CONSIDERING THAT THE POSTAL SERVICE IS UNIONIZED BY LAW AND THAT MORE THAN 80 OF ITS COSTS ARE WAGES AND BENEFITS THIS WAS AN ACHIEVEMENT SINCE 1988 HOWEVER TWO RATE INCREASES HAVE BOOSTED THE PRICE OF ADVERTISING MAIL SHARPLY IN SOME CASES AS MUCH AS 50 AND THIS COUPLED WITH THE RECESSION CAUSED MAIL VOLUME TO FALL IN 1991 FOR THE FIRST TIME SINCE 1975 THE POST OFFICE HAS HUGE FIXED COSTS ESPECIALLY LABOR THOUGH IT HAS BEEN PUSHING AUTOMATION HARD AS THE '90S BEGAN IT FOUND ITSELF FACED WITH DECLINING VOLUME PRECISELY WHEN IT NEEDED TO INCREASE CAPITAL SPENDING SHARPLY TO PAY FOR THE EQUIPMENT WHAT MAKES THE POSTMASTER GENERAL'S TASK DIFFERENT FROM THAT OF A CEO IN THE PRIVATE SECTOR IS THE GOVERNANCE QUESTION HIS CONSTITUENTS OFTEN HAVE CONFLICTING INTERESTS AND THERE IS NO CONSENSUS ON A CLEAR DIRECTION FOR THE POSTAL SERVICE CONSIDER SOME RECENT EVENTS FOR GENERAL OPERATIONS CONGRESS DOES APPROPRIATE FUNDS TO SUPPORT SUBSIDED MAIL RATES FOR NONPROFITS FOR FISCAL 1993 CONGRESS SIMPLY CUT THESE FUNDS SHARPLY AND PASSED A LAW FORBIDDING THE POSTAL SERVICE FROM RAISING THE RATES TO MAKE UP THE DIFFERENCE THIS AMOUNTS TO 360 MILLION THE POSTAL SERVICE HAS TO ABSORB IMPLICITLY THESE COSTS WILL BE PASSED ON TO THE REGULAR RATEPAYERS BUSINESS FROM FEDERAL EXPRESS UNITED PARCEL SERVICE AND OTHERS IT HAS LONG USED ADS TO COMPETE EFFECTIVELY AND IT THOUGHT IT HAD SCORED A COUP WHEN IT BECAME AN OFFICIAL SPONSOR OF THE 1992 OLYMPICS THOUGH THE POSTAL SERVICE CLEARED A 50 MILLION PROFIT FROM THE SPONSORSHIP IT RAN INTO INTENSIVE CONGRESSIONAL OPPOSITION LARGELY ON PHILOSOPHICAL GROUNDS ONE OF MR RUNYON'S FIRST ACTS WAS TO DECLARE THAT THE POSTAL SERVICE WOULD NOT BE A SPONSOR OF THE 1996 OLYMPICS A MARKETING DECISION FOR A FEDERAL EXPRESS OR UPS BECOMES SOMETHING MUCH MORE FOR THE POSTAL SERVICE PRIORITY MAIL SERVICE BECAUSE THE AIR HUB USED TO MOVE EVERY TIME THE CONTRACT WAS REBID THE POSTAL SERVICE DECIDED IN 1991 TO BUILD ITS OWN HUB THE CHOICE OF INDIANAPOLIS AS THE SITE MADE OHIO SEN JOHN GLENN VERY UNHAPPY AND BROUGHT ON A GENERAL ACCOUNTING OFFICE INVESTIGATION ONE OF MANY THE POSTAL SERVICE ENDURES EACH YEAR DIRECTED THE POSTMASTER GENERAL AND THE BOARD OF GOVERNORS TO WITHDRAW THEIR APPEAL OF A DECISION BY THE POSTAL RATE COMMISSION IN 1991 THAT SOUGHT TO ESTABLISH A NEVER IMPLEMENTED 27CENT RATE FOR BARCODED MAIL THAT COULD BE AUTOMATICALLY PROCESSED THIS IS THE FIRST TIME IN THE 21 YEARS SINCE POSTAL REORGANIZATION THAT THE PRESIDENT HAS INTERVENED ON A POSTAL ISSUE CONSIDERING ALL THESE DIFFICULTIES WHY NOT JUST SELL THE POSTAL SERVICE AND LET THE MARKET HANDLE IT BOTH PRACTICAL AND POLITICAL REASONS STAND IN THE WAY ITS SHEER SIZE 47 BILLION IN REVENUE ABOUT 700000 EMPLOYEES ALMOST 40000 FACILITIES MAKES FINDING A BUYER A DAUNTING TASK SEPARATING POSTAL EMPLOYEES FROM THE GOVERNMENT PENSION SYSTEM AND REWRITING THE LAWS THAT GUARD THE MAILS FROM THEFT AND FRAUD ARE BUT TWO OF THE MANY PRACTICAL OBSTACLES THAT WOULD HAVE TO BE OVERCOME THE POLITICAL RESISTANCE TO PRIVATIZATION HOWEVER IS PROBABLY THE GREATER OBSTACLE MANY POLITICIANS REGARD GOVERNMENTPROVIDED MAIL SERVICE AS A NATURAL RIGHT CONGRESSMEN FROM RURAL AREAS FEAR THAT UNFETTERED PRIVATE COMPETITION WOULD ALLOW CREAMSKIMMING OF THE DENSE URBAN MARKETS BY ENTREPRENEURS LEAVING THE RURAL AREAS EITHER POORLY SERVICED BY A HEAVILY SUBSIDIZED GOVERNMENT POST OFFICE OR SUBJECT TO EXORBITANT RATES FROM PRIVATE DELIVERY SERVICES BESIDES ANY SERIOUS ATTEMPT TO PRIVATIZE THE POSTAL SERVICE WOULD RUN UP AGAINST THE UNIONS WHICH ENJOY THE RIGHT TO BARGAIN OVER WAGES AND WORKING CONDITIONS SOMETHING LARGELY DENIED OTHER FEDERAL GOVERNMENT EMPLOYEE GROUPS WHILE RETAINING THEIR INFLUENCE WITH CONGRESS THROUGH CONTRIBUTIONS AND GRASSROOTS LOBBYING EVERY CONGRESSMAN HAS MANY POSTAL EMPLOYEES AS CONSTITUENTS NEVERTHELESS GIVEN THE CONTINUING PRESSURE ON THE POSTAL SERVICE FROM BOTH COMPETITORS AND SUCH ALTERNATIVES AS ELECTRONIC MAIL FAX AND ELECTRONIC FUNDS TRANSFER IT IS TIME TO MOVE FURTHER TOWARD PRIVATIZATION THE INTEREST GROUPS SEEKING TO INFLUENCE POSTAL POLICY NEED TO FIND A COMPROMISE THAT INCLUDES THE FOLLOWING FEDERAL AGENCY THAT IS REGULATED BY ANOTHER FEDERAL AGENCY THE POSTAL RATE COMMISSION COMPRISED OF FIVE COMMISSIONERS AND A PROFESSIONAL STAFF ITS SOLE PURPOSE IS TO HOLD ELABORATE EXPENSIVE HEARINGS TO RECOMMEND RATES TO THE GOVERNORS OF THE POSTAL SERVICE THE RATE COMMISSION WAS SUPPOSED TO PROTECT THE PUBLIC FROM THE UNBRIDLED PRICESETTING AUTHORITY OF A GOVERNMENT MONOPOLY WHILE GETTING CONGRESS OUT OF THE BUSINESS OF SETTING RATES BUT COMPETITIVE MARKET FORCES NOW OFFER A MUCH MORE EFFICIENT CHECK ON THE POSTAL SERVICE THAN THE RATE COMMISSION'S BUREAUCRACY ARE CAPPED AT THE RATE PAID A CABINET OFFICER CURRENTLY 148000 A YEAR BUT ATTRACTING COMPETENT EXECUTIVES FROM THE PRIVATE SECTOR TO THE NONGLAMOROUS POSTAL SERVICE AT SUCH SALARIES IS NOT EASY ANOTHER AREA THAT NEEDS TO BE MODIFIED IS THE RELATIONSHIP BETWEEN THE TREASURY AND THE POSTAL SERVICE ONE OF MR RUNYON'S FIRST MANAGEMENT INCENTIVES WAS TO ATTEMPT TO REFINANCE THE CURRENT POSTAL SERVICE DEBT IN THE PRIVATE DEBT MARKETS AT LOWER RATES THE TREASURY INSISTED ON ITS RIGHT TO BE THE SOLE PROVIDER OF POSTAL SERVICE FUNDS A COMPROMISE WAS REACHED BUT THE UNDERLYING CONFLICT HAS NOT BEEN RESOLVED HAS VARIED ALL OVER THE LOT THESE POLITICAL APPOINTEES HAVE RANGED FROM THE OBVIOUSLY WELL QUALIFIED A RETIRED CEO OF AT&T TO THE MERELY ECCENTRIC A DENTIST WHO NEVER CAME BACK AFTER HIS FIRST BOARD MEETING PRESIDENT CLINTON IN HIS APPOINTMENTS OF POSTAL SERVICE GOVERNORS CAN IMPROVE MATTERS DURING THE CAMPAIGN MUCH TALK WAS HEARD ABOUT REINVENTING GOVERNMENT THE POSTAL SERVICE COULD PROVIDE AN IMPORTANT TEST OF SUCH A PHILOSOPHY GENERAL FOR OPERATIONS SUPPORT 9301110103 930111 ECONOMY TOP DEMOCRATS SAY TAX CUT SEEMS DOUBTFUL CLINTON'S CAMPAIGN PLEDGE FOR MIDDLE CLASS RELIEF FACES GROWING HURDLES BY LUCINDA HARPER AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE TWO TOP CONGRESSIONAL DEMOCRATS SAID BILL CLINTON'S PROMISE OF A TAX CUT FOR THE MIDDLE CLASS MAY HAVE TO BE BROKEN APPEARING ON NBC NEWS'S MEET THE PRESS YESTERDAY HOUSE SPEAKER THOMAS FOLEY SAID I'M NOT SURE IN LIGHT OF THE PRESENT CIRCUMSTANCES THAT A MIDDLECLASS TAX CUT SHOULDN'T BE RETHOUGHT HE ADDED THAT IF A TAX CUT DOES GO THROUGH IT SHOULD BE FOCUSED ON FAMILIES WITH CHILDREN AND NOT ACROSS THE SPECTRUM OF MIDDLECLASS AMERICANS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE APPEARING ON THE SAME PROGRAM SUGGESTED THAT MR CLINTON MAY NOT BE ABLE TO CUT TAXES ON THE MIDDLE CLASS RIGHT AWAY BECAUSE OF THE BULGING BUDGET DEFICIT BUT SEN MITCHELL SAID MR CLINTON SHOULD DO IT AT THE EARLIEST OPPORTUNITY THE DEMOCRATIC LEADERS' COMMENTS CAME AS PRESIDENTELECT CLINTON BEGINS TAILORING HIS ECONOMIC PLAN TO REFLECT THE DETERIORATING OUTLOOK FOR THE FEDERAL DEFICIT WHAT SEEMED UNLIKELY BEFORE NOW SEEMS IMPOSSIBLE THAT MR CLINTON CAN KEEP HIS CAMPAIGN PLEDGES TO HALVE THE DEFICIT IN FOUR YEARS WHILE INCREASING FEDERAL SPENDING FOR INFRASTRUCTURE AND GIVING THE MIDDLE CLASS A TAX BREAK MR CLINTON HASN'T PUBLICLY ABANDONED THE PROMISED TAX CUT ALTHOUGH SEVERAL OF HIS ADVISERS EXPECT IT TO BE SCALED BACK OR PERHAPS DROPPED ALTOGETHER MESSRS FOLEY AND MITCHELL ALSO SUGGESTED THAT MR CLINTON MAY NOT BE ABLE TO HALVE THE DEFICIT IN HIS TERM MR FOLEY SAID MR CLINTON SHOULDN'T BE BLAMED IF HE HAS TO BREAK CAMPAIGN PLEDGES IT'S A MISTAKE FOR ANY PRESIDENT TO SAY I'M GOING TO KEEP MY CAMPAIGN PROMISE NO MATTER WHETHER IT HURTS THE COUNTRY' THE WASHINGTON STATE DEMOCRAT SAID BOTH LEADERS SAID THEY WOULD BE WILLING TO CONSIDER POSTPONING THE ELIGIBILITY FOR MEDICARE BENEFITS TO AGE 67 FROM 65 IN ORDER TO SHRINK THE DEFICIT CURRENT LAW CALLS FOR THE SOCIAL SECURITY RETIREMENT AGE TO CLIMB TO 67 IN 2027 RAISING THE ELIGIBILITY AGE FOR MEDICARE WOULD EVENTUALLY SAVE THE FEDERAL GOVERNMENT A SUBSTANTIAL SUM BY FORCING WORKERS AND THEIR EMPLOYERS TO PICK UP HEALTHINSURANCE BILLS FOR A COUPLE MORE YEARS EVEN BEFORE THE BABY BOOMERS RETIRE THE MEDICARE HOSPITALINSURANCE TRUST FUND THAT IS FINANCED BY THE PAYROLL TAX IS GOING TO RUN DRY ACCORDING TO PRESIDENT BUSH'S BUDGET REPORT THE FUNDING CHASM IS NOW LESS THAN 10 YEARS AWAY THE REPORT SAID MEANWHILE PRESIDENTELECT CLINTON MOVED TOWARD FINALIZING THE NORTH AMERICA FREE TRADE AGREEMENT BY ANNOUNCING THAT HE WILL APPOINT SOMEONE TO OVERSEE THE SIDE AGREEMENTS THAT HE INSISTS ARE NEEDED BEFORE FULLY BACKING THE PACT AFTER A MEETING WITH MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI IN AUSTIN TEXAS ON FRIDAY MR CLINTON ALSO OFFERED A LARGER VISION OF HIS TRADE POLICIES MR CLINTON SAID THAT ONCE THE TRADE AGREEMENT IS COMPLETE HE WOULD SEEK TO OPEN MARKETS WITH OTHER CENTRAL AND SOUTH AMERICAN NATIONS WITH THE NEXT AGREEMENT PROBABLY MADE WITH CHILE AS A REWARD FOR SOLIDIFYING ITS GOVERNMENT MR CLINTON'S DECISION TO MOVE FORWARD ON THE NORTH AMERICAN FREE TRADE ACCORD WAS AT LEAST A GESTURE TO MR SALINAS WHO NEEDED TO TAKE HOME SOME SIGN OF PROGRESS FOR THE PACT AND LIKELY SHOWS THAT MR CLINTON WANTS TO REMOVE THE CLOUD THAT HAS EXISTED SINCE OCTOBER IN THE HEAT OF THE FALL CAMPAIGN MR CLINTON OFFERED ONLY CONDITIONAL APPROVAL OF THE AGREEMENT CREATING FREER TRADE BETWEEN MEXICO THE US AND CANADA IN SEEKING TO APPEASE BOTH SUPPORTERS AND OPPONENTS MR CLINTON HAS OFTEN SAID THAT HE WILL SUPPORT THE MEASURE IF IT INCLUDES ADDITIONAL AGREEMENTS INVOLVING ENVIRONMENTAL AND LABOR ISSUES ON FRIDAY MR CLINTON ALSO SAID THAT I WOULD PUT ONE PERSON IN CHARGE OF ORGANIZING THESE ISSUES IT WAS UNCLEAR WHETHER MR CLINTON HAS CHOSEN SOMEONE FOR THE ROLE BUT ONE POSSIBILITY RAISED IMMEDIATELY WAS NEW MEXICO REP BILL RICHARDSON WHO HAD BEEN A LEADING CANDIDATE TO BE SECRETARY OF THE INTERIOR OTHERS SPECULATED THAT THE JOB WOULD BE HANDLED BY SOMEONE FROM THE WHITE HOUSE OR THE TRADE REPRESENTATIVE'S OFFICE TO DATE THE BELIEF IN TRADE CIRCLES HAS BEEN THAT MR CLINTON HASN'T FORMED HARD POSITIONS ON HIS TRADE VIEWS WHILE HIS MEETING WITH MR SALINAS DID LITTLE TO CHANGE THAT MR CLINTON DID REAFFIRM THAT HE ENVISIONS FREER TRADE IN THE HEMISPHERE AND LIKE PRESIDENT BUSH SEES LATIN AMERICA AS A GATEWAY TO NEW MARKETS FOR US INDUSTRY MR BUSH ALSO HAS HAD THOUGHTS OF A CHILE PACT BUT WAS CONVINCED BY TEXAS SEN LLOYD BENTSEN AND OTHER CONGRESSIONAL LEADERS THAT THE POLITICAL PROCESS WOULD BE OVERLOADED BY TWO TRADE AGREEMENTS TRADE EXPERTS SAY A CHILE PACT BY ITSELF WOULDN'T OFFER SUBSTANTIAL MARKETS TO THE US BUT COULD LEAD TO OTHER AGREEMENTS IN THE AREA BUT LIKE MEXICO CHILE OFFERS ITS OWN SET OF PROBLEMS FOR ONE CALIFORNIA WINE MAKERS ARE ALREADY UPSET THAT WHILE THE NORTH AMERICAN TRADE PACT ALLOWS MEXICO TO INITIALLY CHARGE A 20 TARIFF ON US WINE ENTERING THE COUNTRY CHILE HAS A FREE TRADE AGREEMENT WITH MEXICO AND HAS NO TARIFF ON CHILEAN WINE EXPORTED TO THAT COUNTRY ALSO JAPAN IS A MAJOR INVESTOR IN CHILE AND TO SOME EXTENT WOULD BENEFIT BY ANY US TREATY WITH CHILE THAT STRENGTHENS THE ECONOMY 9301110102 930111 TECHNOLOGY & HEALTH INFORMATION AGE CALCULATORS ARE FOUND TO IMPROVE PERFORMANCE ON SAT MATH TEST BY WILLIAM M BULKELEY WILL PERMITTING THE USE OF CALCULATORS ARTIFICIALLY INCREASE SAT MATH TEST SCORES A NOT AT ALL SO THEY SHOULD BE ALLOWED B YES SO THEY SHOULD BE BANNED C ONLY MARGINALLY SO THEY SHOULD BE ALLOWED BUT SCORES SHOULD BE ADJUSTED TO OFFSET THE EFFECT THE FOLKS WHO RUN THE SCHOLASTIC APTITUDE TEST WHICH WILL ALLOW THE USE OF CALCULATORS DURING THE COLLEGE ENTRANCE EXAMINATION STARTING NEXT YEAR INITIALLY SAID THE CORRECT ANSWER WAS A CRITICS INSISTED THE RIGHT ANSWER WAS B NOW AFTER A FIELD TEST ON CALCULATOR USE INVOLVING 200000 STUDENTS LAST SPRING THE TESTING SERVICE HAS DISCLOSED THAT C IS THEIR ANSWER THE DEBATE OVER THE USE OF CALCULATORS ON STANDARD ENTRANCE EXAMS UNDERSCORES THE BROADER CONTROVERSY OVER THE USE OF THE DEVICES BY STUDENTS CRITICS SAY THAT CALCULATORS MAY BE A USEFUL TOOL FOR HELPING TO TEACH MATH IN CLASS BUT THAT STUDENTS NEED TO KNOW HOW TO DO MATH WITHOUT THEM MOREOVER THEY RAISE THE QUESTION OF WHETHER ADVANCES IN TECHNOLOGY RATHER THAN ADDING TO STUDENTS' KNOWLEDGE ARE SUBTRACTING FROM IT THE COLLEGES TO WHICH YOU'RE APPLYING WILL NEVER KNOW IF YOU CAN MULTIPLY THREE TIMES FOUR SAYS CHESTER FINN A FORMER DEPUTY SECRETARY OF EDUCATION IN THE REAGAN ADMINISTRATION WHO FEARS THAT CALCULATORS MAY BE OVERUSED IN ADDITION THE MINORITY OF STUDENTS WHO DON'T USE CALCULATORS ON THE TEST WILL BE AT A SLIGHT DISADVANTAGE THAT MAY HURT CERTAIN GROUPS JUST AS STUDENTS WHO DON'T TAKE SAT COACHING CLASSES ARE NOW OFTEN HAMPERED BUT CALCULATOR FANS SAY THE FINDINGS WILL FORCE SCHOOLS TO WHOLEHEARTEDLY ADOPT CALCULATORS THIS WILL CHANGE THE ATTITUDE OF MANY TEACHERS WHO HAVE BEEN USING THE SAT AS A RATIONALE FOR REFUSING TO USE CALCULATORS SAYS ZALMAN USISKIN DIRECTOR OF THE UNIVERSITY OF CHICAGO'S SCHOOL MATHEMATICS PROJECT WHICH IS DEVELOPING WAYS TO IMPROVE MATH EDUCATION CITING THE SATS STATES ARE INCREASINGLY ENCOURAGING CALCULATOR USE ON STANDARDIZED TESTS THE CONTROVERSY OVER CALCULATORS HAS BEEN AROUND FOR A WHILE ALTHOUGH MANY TRADITIONALISTS QUESTION THEIR USE IN SCHOOLS THE NATIONAL COUNCIL OF TEACHERS OF MATH RECOMMENDED IN 1989 THAT STUDENTS FROM KINDERGARTEN TO 12TH GRADE HAVE CALCULATORS AVAILABLE AT ALL TIMES THEY SAID CALCULATORS WOULD REDUCE DRILLS AND MAKE TIME AVAILABLE FOR PROBLEMSOLVING EXERCISES WITH REALWORLD EXAMPLES SHORTLY AFTER THE COLLEGE ENTRANCE EXAMINATION BOARD ORDERED THE EDUCATIONAL TESTING SERVICE WHICH PRODUCES THE SATS TO START PERMITTING CALCULATORS THE COLLEGE BOARD SAYS IT WILL STRONGLY RECOMMEND THAT STUDENTS TAKING THE PRELIMINARY SCHOLASTIC APTITUDE TEST NEXT FALL AND THE SCHOLASTIC APTITUDE TEST IN THE SPRING OF 1994 BRING A CALCULATOR INITIALLY THE COLLEGE BOARD PROMISED THAT ALLOWING CALCULATOR USE WOULDN'T AFFECT RESULTS TEST DEVELOPERS ELIMINATED CALCULATORACTIVE QUESTIONS IN WHICH LONG DIVISION OR DECIMAL POINTS WOULD SLOW DOWN TESTTAKERS USING PENCIL AND PAPER AND THEY DEVISED SOME QUESTIONS IN WHICH SOMEONE USING A CALCULATOR WOULD BE SLOWER THAN SOMEONE WHO UNDERSTOOD THE UNDERLYING THEORY SEEN BUT NOW THE BOARD SAYS THAT FIELD TESTS OF THE NEW SATS INDICATE THAT STUDENTS WHO USE CALCULATORS ON THE TESTS DO 10 TO 20 POINTS BETTER ON THE EXAM'S 200 TO 800 POINT SCALE THAN THOSE WHO DON'T BY GETTING ONE OR TWO MORE QUESTIONS OUT OF 60 RIGHT THERE WAS A NEGLIGIBLE BUT NOT IGNORABLE INCREASE ACROSS THE BOARD SAYS BRADLEY J QUIN DIRECTOR OF THE NEW SAT PROJECT FOR THE COLLEGE BOARD THE COLLEGE BOARD SAYS THAT FINAL SCORES WILL BE ADJUSTED DOWNWARD SO THAT CALCULATOR USE WON'T CREATE A BLIP IN THE CLOSELY WATCHED RESULTS WE NORM FROM YEAR TO YEAR BASED ON PREVIOUS VERSIONS WE DO PLAN TO EQUATE SO THAT THERE IS NO DIFFERENCE FROM YEAR TO YEAR DUE TO THE CALCULATOR USE SAYS MR QUIN HOWEVER SCORES WON'T BE ADJUSTED ON AN INDIVIDUAL BASIS DEPENDING ON WHETHER A CALCULATOR WAS USED INSTEAD THEY WILL BE LOWERED BY A UNIFORM PERCENTAGE MR QUIN SAYS THE BOARD DIDN'T FIND ANY MEASURABLE DIFFERENCE IN CALCULATOR RESULTS BY RACE OR SEX THE COLLEGE BOARD SAYS THAT A SURVEY IT DID OF THE TRIAL TESTTAKERS DISPELS EQUITY CONCERNS OVER CALCULATOR USE ON THE SAT THE ORGANIZATION FOUND THAT 94 OF COLLEGEBOUND STUDENTS OWN OR HAVE ACCESS TO A CALCULATOR EVEN IN URBAN AND RURAL AREAS THOUGHT TO TRAIL IN CALCULATOR USE AND ONLY 1 SAID THEY DIDN'T KNOW HOW TO USE ONE STUDENTS WHO REGULARLY USE CALCULATORS IN SCHOOL SAY THEY GET HIGHER GRADES AND HAD HIGHER SAT SCORES HOWEVER SOME VARIATIONS IN CALCULATOR EXPERIENCE DO APPEAR EVEN IN THE COLLEGE BOARD'S OWN SURVEY SOME 86 OF WHITES AND ASIANS USE CALCULATORS WEEKLY COMPARED WITH ABOUT 80 OF HISPANICS AND 77 OF BLACKS CRITICS ARE DISMAYED CINTHIA SCHUMAN EXECUTIVE DIRECTOR OF THE NATIONAL CENTER FOR FAIR AND OPEN TESTING A CAMBRIDGE MASS ORGANIZATION SAYS SHE WAS SURPRISED TO LEARN THAT CALCULATOR USAGE HELPED THE TESTTAKERS PREVIOUSLY THEY'VE SAID THAT THERE WOULD BE NO DIFFERENCE THIS RAISES EQUITY ISSUES SHE ADDS THE PLAYING FIELD HASN'T BEEN LEVEL FOR ALL STUDENTS THIS MAY EXACERBATE THE PROBLEM NOTING THAT TESTTAKERS WILL HAVE TO QUICKLY DECIDE WHEN TO USE THE CALCULATOR AND WHEN TO USE THEIR HEADS SHE SAYS THE COACHING SCHOOLS WILL QUICKLY GEAR UP TO ADVISE ON CALCULATORS AND THE ADVANTAGES FOR RICHER KIDS WILL BE COMPOUNDED THE COLLEGE BOARD SAYS ITS RESEARCH SHOWS THAT THE TYPE OF CALCULATOR USED DOESN'T AFFECT SCORES SO IT WILL TELL STUDENTS TO BRING THEIR OWN CALCULATORS ELIMINATING PROBLEMS WITH UNFAMILIARITY HOWEVER POCKET COMPUTERS AND CALCULATORS THAT PRINT TAPES WON'T BE ALLOWED MR QUIN SAYS THAT PROGRAMMABLE CALCULATORS THAT ALLOW USERS TO STORE INFORMATION WON'T HELP TESTTAKERS BECAUSE THEY WON'T KNOW WHAT QUESTIONS THEY WILL BE ASKED STUDENTS SOMETIMES CHEAT ON CLOSEDBOOK SCHOOL TESTS BY STORING INFORMATION THAT THEY FEAR THEY'LL FORGET IN THEIR CALCULATORS FURTHERMORE MATH FORMULAS USEFUL IN DETERMINING ANSWERS ARE PRINTED RIGHT IN THE TEST BOOKS HOWEVER THE BOARD IS WORRIED THAT TESTTAKERS MIGHT USE SUCH CALCULATORS TO STORE QUESTIONS FROM THE TEST FOR SALE TO LATER TESTTAKERS TEST MONITORS MAY BE TOLD TO CLEAR THE MEMORIES OF ALL SUCH CALCULATORS AS THE STUDENTS LEAVE 9301110101 930111 EUROPEAN AIRLINES SAY PASSENGER TRAFFIC FELL DURING NOVEMBER SPECIAL TO THE WALL STREET JOURNAL BRUSSELS EUROPEAN AIRLINE FLIGHTS WERE OFTEN LESS THAN HALF FULL IN NOVEMBER EUROPE'S BIGGEST CARRIERS SAID THE LOAD FACTOR ON EUROPEAN ROUTES FELL BELOW 50 FOR THE FIRST TIME IN 15 YEARS AS A 41 INCREASE IN PASSENGERS FROM A YEAR EARLIER FAILED TO OFFSET EXTRA SEATS THE 24MEMBER ASSOCIATION OF EUROPEAN AIRLINES SAID THE 22PERCENTAGEPOINT DECLINE FROM A YEAREARLIER IN LOAD FACTOR TO 498 UNDERSCORES SERIOUS WEAKNESSES IN MEMBER AIRLINES' CORE EUROPEAN MARKET THE AEA ASSOCIATION SAID ELSEWHERE EUROPEAN AIRLINES BOOSTED THE NUMBER OF PASSENGERS ON NORTH ATLANTIC ROUTES BY 67 AND ROUTES TO ASIA BY 9 AIRCRAFT FLEW 625 FULL ON NORTH ATLANTIC ROUTES AND 677 FULL ON ASIA ROUTES THE AEA SAID CARGO TRAFFIC GREW BY 2 MOSTLY DUE TO A SURGE IN FREIGHT TO THE MIDDLE EAST FREIGHT TRAFFIC WITHIN EUROPE AND TO LATIN AMERICA FELL SLIGHTLY WHILE OTHER MARKETS WERE FLAT THE ASSOCIATION ADDED 9301110100 930111 ICAHN OFFICIALLY ENDS STINT AS THE CHAIRMAN OF TWA MOUNT KISCO NY CARL ICAHN OFFICIALLY ENDED HIS TROUBLED TENURE AS TRANS WORLD AIRLINES CHAIRMAN TURNING THE AIRLINE OVER TO ITS EMPLOYEES AND CREDITORS IN EXCHANGE FOR CONCESSIONS AS EXPECTED MR ICAHN RELINQUISHED HIS OWNERSHIP OF TWA CLEARING THE WAY FOR THE AIRLINE TO EMERGE FROM FEDERAL BANKRUPTCY PROTECTION NEXT MONTH MR ICAHN HAD EARLIER TURNED OVER DAILY MANAGEMENT OF THE CARRIER TO ROBIN WILSON AND GLENN ZANDER WHO WERE CHOSEN BY A COMMITTEE OF EMPLOYEES AND CREDITORS TO RUN THE CARRIER UNTIL THE REORGANIZATION PLAN IS COMPLETE AND A NEW CHAIRMAN IS FOUND MR ICAHN FINALIZED HIS DEPARTURE FRIDAY AGREEING TO LEND 200 MILLION TO THE AIRLINE AND TO CONTRIBUTE AS MUCH AS 240 MILLION TO ITS PENSION FUND NEXT MONTH A FEDERAL BANKRUPTCY JUDGE IN WILMINGTON DEL IS EXPECTED TO APPROVE THE AIRLINE'S REORGANIZATION PLAN WHICH GIVES 45 OF THE AIRLINE TO ITS EMPLOYEES AND 55 TO CREDITORS IN EXCHANGE EMPLOYEES ARE CONCEDING WAGES AND BENEFITS OF MORE THAN 650 MILLION AND CREDITORS WILL FORGIVE ABOUT 1 BILLION IN DEBT MR ICAHN 56 YEARS OLD SEIZED CONTROL OF TWA IN 1986 EARLY ON HE CUT COSTS AND RETURNED THE AIRLINE TO PROFITABILITY IN 1988 HE RECOUPED MUCH OF HIS ORIGINAL INVESTMENT IN THE AIRLINE WHEN HE TOOK IT PRIVATE HOWEVER VICTIMIZED BY THE PERSIAN GULF WAR AND RECESSION TWA WAS FORCED INTO CHAPTER 11 PROTECTION EARLY LAST YEAR 9301110099 930111 PUBLICLY TRADED FUNDS FOLLOWING IS A WEEKLY LISTING OF UNAUDITED NET ASSET VALUES OF PUBLICLY TRADED INVESTMENT FUND SHARES REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE ALSO SHOWN IS THE CLOSING LISTED MARKET PRICE OR A DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE 9301110098 930111 CORRECTIONS & AMPLIFICATIONS THE LOS ANGELES RADIO STATION KMNY MONEY RADIO WHICH SIGNED ON IN MARCH 1987 CONTINUES TO OPERATE ON A FULLTIME BASIS AT 1600 ON THE AM DIAL IN LAST MONDAY'S ADVERTISING COLUMN IT WAS INCORRECTLY REPORTED THAT THE STATION WENT OFF THE AIR LAST YEAR PUBLIC SERVICE CO OF NEW MEXICO'S LITIGATION WITH UNITS OF DU PONT CO AND AMOCO CORP HAS NOT BEEN SETTLED AN ARTICLE FRIDAY IMPLIED THAT IT HAD BEEN SETTLED SEE BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO UTILITY AGREES TO RECOVER SOME COSTS CREATING CHARGE WSJ JAN 9301110097 930111 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT BALLY'S HEALTH & TENNIS CORP 200 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO ENZON INC THREE MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC GTE CALIFORNIA 150 MILLION OF FIRST MORTGAGE BONDS VIA COMPETITIVE BIDDING TEXAS UTILITIES CO 100 MILLION OF CUMULATIVE PREFERRED STOCK VIA MERRILL LYNCH WHOLE FOODS MARKET INC 11 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO WILLIAMS COAL SEAM GAS ROYALTY TRUST INITIAL FIVE MILLION UNITS DECREASED FROM 85 MILLION UNITS VIA SMITH BARNEY HARRIS UPHAM & CO KING COUNTY WASH 1068 MILLION OF 1993 SERIES A VARIOUSPURPOSE BONDS VIA COMPETITIVE BIDDING LINCOLN SCHOOL DISTRICT NO 1 NEB 545 MILLION OF SERIES 1993 IMPROVEMENT BONDS VIA COMPETITIVE BIDDING MINNEAPOLIS SPECIAL SCHOOL DISTRICT NO 1 MINN 52 MILLION OF TAXANTICIPATION CERTIFICATES OF INDEBTEDNESS VIA COMPETITIVE BIDDING LOS ANGELES MUNICIPAL IMPROVEMENT CORP 655 MILLION OF 1993 SERIES A LEASEHOLD REFUNDING REVENUE BONDS FOR THE CENTRAL LIBRARY PROJECT VIA COMPETITIVE BIDDING MARYLAND 130 MILLION OF 1993 FIRST SERIES STATE AND LOCAL FACILITIES LOAN GENERAL OBLIGATION BONDS VIA COMPETITIVE BIDDING BRAZOS HIGHER EDUCATION AUTHORITY TEXAS 50 MILLION OF STUDENTLOAN REVENUE REFUNDING BONDS VIA A SMITH BARNEY GROUP DISTRICT OF COLUMBIA 83750000 OF CERTIFICATES OF PARTICIPATION VIA A PAINEWEBBER INC GROUP HINSDALE HOSPITAL ILL 61 MILLION OF BONDS VIA A FIRST BOSTON CORP GROUP HURON VALLEY SCHOOL DISTRICT MICH 574 MILLION OF REFUNDING GENERAL OBLIGATION BONDS VIA AN AG EDWARDS & SONS INC GROUP INDIANA MUNICIPAL BOND BANK 100 MILLION OF BONDS VIA A BEAR STEARNS & CO GROUP MONTGOMERY COUNTY PA 75 MILLION OF BONDS AMBAC INDEMNITY CORP VIA A PAINEWEBBER GROUP NEW YORK STATE ENERGY RESEARCH DEVELOPMENT AUTHORITY 100 MILLION OF REVENUE BONDS VIA A LEHMAN BROTHERS GROUP NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY 117 MILLION OF 1993 SERIES A POWER SYSTEM REVENUE BONDS FOR THE AGENCY'S PEAKING PROJECT AND 148 BILLION OF 1993 SERIES B POWER SYSTEM REVENUE REFUNDING BONDS VIA A SMITH BARNEY GROUP NORTH CENTRAL TEXAS HEALTH FACILITIES AUTHORITY 60 MILLION OF BONDS FOR THE CHILDREN'S HOSPITAL MUNICIPAL BOND INVESTORS ASSURANCE CORP VIA A MERRILL LYNCH GROUP OHIO BUILDING AUTHORITY 110 MILLION OF REFUNDING BONDS VIA A BEAR STEARNS GROUP ORANGE COUNTY HEALTH FACILITIES AUTHORITY FLA 111 MILLION OF HOSPITAL REVENUE BONDS FOR ORLANDO REGIONAL MEDICAL CENTER MUNICIPAL BOND INVESTORS ASSURANCE VIA A LEHMAN BROTHERS GROUP SAM RAYBURN MUNICIPAL POWER AGENCY TEXAS 1646 MILLION OF POWER SUPPLY REFUNDING REVENUE BONDS VIA A PAINEWEBBER GROUP SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY 212 MILLION OF REVENUE BONDS FINANCIAL GUARANTY INSURANCE CO VIA A GOLDMAN SACHS & CO GROUP TEXAS 125 MILLION OF GENERAL OBLIGATION BONDS FOR VETERANS' HOUSING ASSISTANCE VIA A FIRST BOSTON CORP GROUP TEXAS HEALTH FACILITIES DEVELOPMENT AUTHORITY 70 MILLION OF HOSPITAL REVENUE BONDS FOR THE ALL SAINTS EPISCOPAL HOSPITAL OF FORT WORTH MUNICIPAL BOND INVESTORS ASSURANCE VIA A GOLDMAN SACHS & CO GROUP VERMONT HOUSING FINANCE AUTHORITY 525 MILLION OF SINGLEFAMILY MORTGAGE BONDS VIA A PAINEWEBBER INC GROUP 9301110096 930111 TECHNOLOGY MICROSOFT PLANS TO LAUNCH WINDOWS NT IN EARLY MAY REDMOND WASH MICROSOFT CORP EXPECTS TO LAUNCH ITS WINDOWS NT OPERATING SYSTEM IN EARLY MAY SAID AN EXECUTIVE WITH THE SOFTWARE MAKER BARRING ANY UNEXPECTED SNAGS THE COMPANY PLANS TO UNVEIL A FINISHED VERSION OF WINDOWS NT AT THE SPRING COMDEX COMPUTER SHOW IN ATLANTA THE EXECUTIVE SAID THE PRICE OF WINDOWS NT HAS NOT YET BEEN SET BUT MICROSOFT HAS SAID IT WILL SELL THE SOFTWARE FOR LESS THAN 500 MICROSOFT ORIGINALLY HAD PLANNED TO DELIVER WINDOWS NT BY THE END OF 1992 FOR MONTHS THE COMPANY HAS BEEN SHARING UNFINISHED VERSIONS WITH CUSTOMERS AND COMPANIES THAT INTEND TO WRITE APPLICATIONS TAILORED TO WINDOWS NT WINDOWS NT IS A NEW OPERATING SYSTEM AIMED AT HIGHEND PERSONAL COMPUTERS AND COMPUTER NETWORKS AN OPERATING SYSTEM CONTROLS THE BASIC FUNCTIONS OF A COMPUTER AND DETERMINES MANY FEATURES OF APPLICATIONS MICROSOFT ALREADY SELLS A VERSION OF WINDOWS BASED ON THE COMPANY'S WIDELYUSED DOS OPERATING SYSTEM WINDOWS NT IS DESIGNED TO RUN EXISTING DOS APPLICATIONS AS WELL AS NEW PROGRAMS DESIGNED FOR FUTURE COMPUTERS BUILT AROUND INTEL CORP'S PENTIUM MICROPROCESSOR 9301110095 930111 EXXON WINS INJUCTION IN PATENT DISPUTE CASE WITH LUBRIZOL CORP IRVING TEXAS EXXON CORP SAID A US DISTRICT COURT IN HOUSTON ISSUED A PERMANENT INJUNCTION PREVENTING LUBRIZOL CORP FROM MAKING AND SELLING CERTAIN MOTOR OIL PRODUCTS THAT INFRINGE ON AN EXXON PATENT EXXON SAID THE INJUNCTION FOLLOWS A FEDERAL JURY VERDICT IN FAVOR OF ITS CHEMICAL UNIT ON DEC 23 THE JURY FOUND THAT LUBRIZOL HAD INFRINGED AN EXXON PATENT ON COPPERCONTAINING FORMULATIONS FOR USE IN MOTOR OILS ACCORDING TO EXXON A LUBRIZOL SPOKESMAN SAID THE COMPANY CONTINUES TO BELIEVE THAT NONE OF ITS PRODUCTS INFRINGE ON THE EXXON PATENT AND THAT THE PATENT IS INVALID LUBRIZOL PLANS TO APPEAL THE VERDICT TO THE US DISTRICT COURT OF APPEALS IN WASHINGTON DC WHICH REVIEWS PATENT CASES THE LUBRIZOL PRODUCTS AFFECTED BY THE INJUNCTION ARE MADE WITH SMALL AMOUNTS OF AN ADDED OILSOLUBLE COPPER COMPONENT THAT IS USED IN CERTAIN FORMULATIONS THE PRODUCTS LUBRIZOL SELLS ARE ADDITIVES USED BY ITS CUSTOMERSTHE MARKETERS OF BRANDNAME MOTOR OILS LUBRIZOL SAID IT WILL IMMEDIATELY CONVERT ITS US CUSTOMERS TO ALTERNATE PRODUCTS WITHOUT THE DISPUTED COMPONENT LUBRIZOL BASED IN WICKLIFFE OHIO IS A SUPPLIER OF SPECIALTY CHEMICALS FOR LUBRICANTS AND FUELS TO CUSTOMERS IN AT LEAST 100 COUNTRIES THE COMPANY SAID THE INJUNCTION ONLY AFFECTS ITS PRODUCTS IN THE US 9301110094 930111 BUSINESS BRIEF STRUCTURAL DYNAMICS RESEARCH CORP FIRM SAYS PERSHARE PROFIT WILL FALL BELOW ESTIMATES STRUCTURAL DYNAMICS RESEARCH CORP MILFORD OHIO SAID FOURTHQUARTER PERSHARE EARNINGS WERE ABOUT SIX CENTS OR SEVEN CENTS BELOW ANALYSTS' ESTIMATES OF 12 CENTS TO 13 CENTS STRUCTURAL DYNAMICS BLAMED THE TURMOIL IN EUROPEAN CURRENCY MARKETS WHICH IT SAID REDUCED EARNINGS SEVEN CENTS A SHARE THIS IS THE SECOND STRAIGHT QUARTER IN WHICH THE COMPANY HAS SAID ITS EARNINGS WILL FALL BELOW EXPECTATIONS IN THE 1991 FOURTH QUARTER THE AUTOMATION SOFTWARE AND ENGINEERING SERVICES FIRM EARNED 59 MILLION OR 20 CENTS A SHARE ON REVENUE OF 412 MILLION 9301110093 930111 EC IS NOW SOUTH KOREA'S NO 1 AUTOEXPORT MARKET SEOUL THE EUROPEAN COMMUNITY REPLACED THE US AS SOUTH KOREA'S LARGEST AUTOMOBILEEXPORT MARKET IN 1992 THE KOREA AUTOMOBILE MANUFACTURERS ASSOCIATION SAID ACCORDING TO THE ASSOCIATION AUTOMOBILE EXPORTS TO THE EC MORE THAN DOUBLED TO 112100 IN 1992 FROM 55830 IN 1991 THIS BOOSTED THE SHARE OF THE EC IN SOUTH KOREA'S TOTAL AUTO EXPORTS TO 246 FROM THE YEAR BEFORE'S 143 THE HEFTY RISE IN EXPORTS TO THE EC WAS ATTRIBUTED TO COMPANY EFFORTS TO DIVERSIFY THEIR EXPORT MARKETS THE ASSOCIATION SAID MEANWHILE AUTOMOBILE EXPORTS TO THE US DROPPED 36 TO 109000 IN 1992 FROM 170000 IN THE PRIOR YEAR THE DROP CAUSED A PLUNGE IN THE SHARE OF THE US IN SOUTH KOREA'S VEHICLE EXPORTS TO 239 FROM 439 THE YEAR BEFORE SOUTH KOREAN SHIPMENTS TO EASTERN EUROPE FELL 479 TO 9200 UNITS IN 1992 EXPORTS TO SOUTH AND CENTRAL AMERICA SOARED NEARLY 300 TO 50500 BOOSTING THE REGION'S SHARE IN SOUTH KOREAN AUTO EXPORTS TO 114 FROM 34 THE YEAR BEFORE THE AUTOMOBILE ASSOCIATION PROJECTED CAR EXPORTS WILL RISE 14 TO 520000 UNITS IN 1993 FROM 456153 IN 1992 9301110092 930111 IN BUSHCLINTON ERA BEWARE OF HYPHEN ABUSE BY RICHARD L LEED NOW THAT THE CLINTON INAUGURATION IS AT HAND HOPE BESTIRS THE NATION'S HEART AND WE THINK ABOUT MORE PERTINENT THINGS AS ALL FACTIONS COME TOGETHER TO WIT HYPHENS BEFORE DURING AND AFTER THE CAMPAIGN IT WAS THE HYPHEN THAT JOINED THE NAMES OF REAGAN AND BUSH IN THE WRITINGS OF BOTH REPUBLICANS AND DEMOCRATS THE REPUBLICANS USED THE HYPHEN IN REAGANBUSH TO DISPLAY PARTY UNITY SUCH AS IT WAS THE DEMOCRATS USED THE HYPHEN TO ASSOCIATE BUSH WITH THE DESPISED NAME OF MR REAGAN WHATEVER THE MOTIVATION THE HYPHEN CONCEALS THE INTRAPARTY SPLIT BETWEEN REAGAN CONSERVATIVES THE GOLDWATER REPUBLICANS AND BUSH LIBERALS THE ROCKEFELLER REPUBLICANS ON A DEEPER LEVEL THE HYPHEN CONCEALS THE MOST FUNDAMENTAL QUESTION THAT CAN BE ASKED ABOUT GOVERNMENT HOW BIG A ROLE SHOULD GOVERNMENT PLAY IN THE LIVES OF INDIVIDUAL CITIZENS THE CONSERVATIVE ANSWER SMALLER THAN AT PRESENT THE LIBERAL ANSWER LARGER THAN AT PRESENT IT IS AMUSING AND INSTRUCTIVE TO PUT HYPHENS IN PLACES NEWSPAPERS AND HISTORY BOOKS DON'T THE CARTERREAGAN ERA SOUNDS ABSURD AT FIRST BUT THREE IMPORTANT ISSUES JOIN THESE TWO PRESIDENTS THE SOLUTIONS WERE BEGUN BY MR CARTER AND CONTINUED BY MR REAGAN REGULATION INFLATION AND DEFENSE MR CARTER INSTITUTED DEREGULATION WITH HIS APPOINTMENT OF ALFRED KAHN TO DEREGULATE THE AIRLINE INDUSTRY AND MR REAGAN CONTINUED THIS INITIATIVE WITH THE DEREGULATION OF THE TRUCKING AND OTHER INDUSTRIES MR CARTER BEGAN THE CONQUEST OF INFLATION WITH THE APPOINTMENT OF PAUL VOLCKER WHO WAS REAPPOINTED BY MR REAGAN AND MR CARTER'S LAST BUDGET THE ONE MR REAGAN HAD TO LIVE WITH IN THE FIRST YEAR OF HIS ADMINISTRATION HAD MORE FOR DEFENSE THAN ANY OF MR REAGAN'S SUBSEQUENT BUDGETS TODAY THE LIBERAL DEMOCRAT IS AGAINST DEREGULATION AND THE CONSERVATIVE REPUBLICAN IS FOR DEREGULATION BUT NEITHER CAN AFFORD TO BE HONEST ABOUT THE ORIGIN OF DEREGULATION THE PARTISAN DEMOCRAT IS NOT GOING TO BLAME JIMMY CARTER FOR WHAT HE SEES AS THE DISADVANTAGES OF DEREGULATION HE IS GOING TO BLAME THE OPPOSITION RONALD REAGAN AND THE PARTISAN REPUBLICAN WILL OF COURSE CREDIT MR REAGAN FOR WHAT HE SEES AS THE ADVANTAGES OF DEREGULATION NEITHER IS BEING CANDID PRESIDENT HOOVER'S HYPHEN HAS BEEN MISTREATED BY JOURNALISTS AND HISTORIANS HE IS USUALLY HYPHENATED WITH CALVIN COOLIDGE HIS FELLOW REPUBLICAN BUT THIS MAKES THE GROSS ERROR OF LINKING A SMALLGOVERNMENT FREE MARKETER WITH A BIGGOVERNMENT STATIST AS PHILOSOPHICALLY JARRING AS THE REAGANBUSH LINKAGE WITH RESPECT TO GOVERNMENT POWER HIGH TAXES THE CREATION OF BUREAUCRACIES AND PROTECTIONISM THE HYPHEN MAKES MORE SENSE AFTER MR HOOVER'S NAME THAN BEFORE IT THE HOOVERROOSEVELT ERA BOTH HERBERT HOOVER AND FDR WERE RESPONSIBLE FOR CONVERTING A NORMAL DOWNTURN OF ONE OR TWO YEARS' DURATION INTO A DECADE OF DEPRESSION ANOTHER CROSSPARTY LINKAGE SELDOM PRINTED WITH A HYPHEN IS THE NIXONFORDCARTER ERA OF INCREASED GOVERNMENT SPENDING PRICE CONTROLS AND DETENTE AN ERA THAT CONTRASTS STRIKINGLY WITH THE REAGAN ERA OF REDUCED SPENDING GROWTH FREE MARKETS AND CONFRONTATION WITH THE SOVIET UNION ON THESE GROUNDS AND THOSE OF THE BIG VS SMALL GOVERNMENT QUESTION IT MAKES MORE SENSE TO LINK MR CARTER WITH MR NIXON THAN WITH MR REAGAN RETURNING FINALLY TO THE ABOMINABLE REAGANBUSH HYPHEN I WILL SPECULATE THAT WITHIN THE NEXT FOUR YEARS IT WILL SEEM REASONABLE TO MOVE THE HYPHEN TO THE END OF BUSH AND REFER TO THE BUSHCLINTON ERA OF INCREASED TAXES AND INCREASED REGULATION AN ERA OF BIGGER NOT SMALLER GOVERNMENT AND MR REAGAN WILL STAND ALONE UNHYPHENATED BETWEEN NIXONFORDCARTER AND BUSHCLINTON THERE ARE OTHER GROUNDS FOR POSITING A HYPHENFREE REAGAN HE WAS SEEN BY MANY AS BEING ABOVE PARTISANSHIP THE EVIDENCE FOR WHICH IS THE LARGE NUMBER OF REGISTERED DEMOCRATS WHO VOTED FOR HIM HE HIMSELF HAD BEEN A DEMOCRAT AND HE ANNOYED MANY REPUBLICAN COLLEAGUES BY QUOTING DEMOCRATS LIKE HARRY TRUMAN OVERALL BOTH THE GOP PARTISAN AND THE DEMOCRAT PARTISAN HAVE GOOD REASON TO ABUSE THE HYPHEN THE ORDINARY CITIZEN INTERESTED IN THE TRUTH AND WILLING TO VIEW THINGS IN HISTORICAL PERSPECTIVE SHOULD CONSIDER PLACING HYPHENS IN UNUSUAL PLACES IF ONLY TO STIMULATE SOME SERIOUS THINKING ABOUT SOME SERIOUS MATTERS IT IS A TRIAL HOWEVER FOR MANY PEOPLE TO TRANSCEND POLITICAL PASSION WHICH HAS LONG HAD THE FORCE OF RELIGIOUS FERVOR THERE IS PERHAPS LORD ACTON WROTE IN 1858 NO STRONGER CONTRAST BETWEEN THE REVOLUTIONARY TIMES IN WHICH WE LIVE AND THE CATHOLIC AGES OR EVEN THE PERIOD OF THE REFORMATION THAN IN THIS THAT THE INFLUENCE WHICH RELIGIOUS MOTIVES FORMERLY POSSESSED IS NOW IN A GREAT MEASURE EXERCISED BY POLITICAL OPINIONS AND POLITICAL OPINIONS ARE SOMETIMES EXPRESSED BY HYPHENS 9301110091 930111 INTERNATIONAL GERMANS DEBATE CHOICE OF ECONOMICS MINISTER BONN THE CHOICE FOR GERMANY'S NEW ECONOMICS MINISTER GUENTER REXRODT WAS BARELY NOMINATED BEFORE THE GRUMBLING BEGAN EVEN THOUGH MR REXRODT COMES WITH A RELATIVELY LONG LIST OF QUALIFICATIONS HE WAS STILL VIEWED BY MANY CRITICS AS PRIMARILY A POLITICAL CHOICE SOME ARGUED ONLY A NONPOLITICIAN DRAWN FROM THE RANKS OF BUSINESS COULD RESTORE PUBLIC CONFIDENCE IN CHANCELLOR HELMUT KOHL'S EFFORTS TO BOLSTER GERMANY'S SAGGING ECONOMY BUT THE 51YEAROLD MR REXRODT WHILE A TRAINED ECONOMIST WHO FORMERLY HEADED CITIBANK'S GERMAN OPERATIONS HAS ALSO DONE STINTS AS BOTH ECONOMICS MINISTER AND FINANCE MINISTER IN THE CITY GOVERNMENT OF BERLIN SOME CRITICS COMPLAINED THAT MR REXRODT WORKED ON THE BOARD OF THE TREUHANDANSTALT THE TRUST AGENCY SET UP TO PRIVATIZE FORMER EAST GERMAN BUSINESSES THE AGENCY IS EXTREMELY UNPOPULAR IN EASTERN GERMANY WHERE IT IS VIEWED AS A DESTROYER OF JOBS MR REXRODT'S NOMINATION IS EXPECTED TO BE CONFIRMED BY MR KOHL EARLY THIS WEEK HE WILL REPLACE JUERGEN MOELLEMANN WHO RESIGNED IN THE WAKE OF AN INFLUENCEPEDDLING SCANDAL 9301110090 930111 MARKETING BRIEF GENERAL MILLS INC FIRM BOOSTS CEREAL PRICES BY 35 FOLLOWING KELLOGG THE INCREASE RANGES BETWEEN 2 AND 4 AND INCLUDES MOST OF THE COMPANY'S 31 READYTOEAT CEREALS EARLIER KELLOGG RAISED ITS CEREAL PRICES AN AVERAGE 32 GENERAL MILLS OF MINNEAPOLIS CITED OVERALL INCREASES IN OPERATING COSTS IT LAST RAISED PRICES TO RETAILERS IN MAY 1992 AN AVERAGE 4 A SPOKESMAN SAID THE IMPACT ON CONSUMERS OF THE COMPANY'S BESTSELLING CHEERIOS BRAND WOULD BE A SINGLESERVING COST INCREASE OF ABOUT ONE CENT TO NEARLY 20 CENTS ONE SERVING IS 1 1/4 CUPS 9301110089 930111 ARCHERDANIELS SETTLES DISPUTE WITH FTC ON PRODUCT CLAIMS WASHINGTON ARCHERDANIELSMIDLAND CO SETTLED FEDERAL TRADE COMMISSION CHARGES THAT IT DIDN'T HAVE SUFFICIENT EVIDENCE TO BACK CLAIMS THAT ITS CORNSTARCH ADDITIVE MADE PLASTICS BIODEGRADABLE WHEN DISPOSED OF IN LANDFILLS UNDER THE AGREEMENT THE DECATUR ILL CONCERN WOULD BE PROHIBITED FROM MAKING ANY SUCH CLAIMS WITHOUT RELIABLE EVIDENCE TO BACK THEM UP THE COMMISSION SAID ADM MADE THE CLAIMS FOR ITS CORNSTARCH PRODUCT MASTER BATCH IN NETWORK TELEVISION COMMERCIALS AND OTHER PROMOTIONAL MATERIALS THE AGENCY SAID THE CLAIMS WERE FALSE AND MISLEADING FTC OFFICIALS SAID A CLAIM THAT THE PRODUCT IS DESIGNED TO BREAK DOWN AS PART OF A BACKYARD COMPOSTING SYSTEM WOULDN'T VIOLATE THE CONSENT ORDER TO ADVERTISE THAT INFORMATION HOWEVER THE COMPANY WOULD ALSO HAVE TO REVEAL THAT THE PRODUCT ISN'T DESIGNED TO WORK IN LANDFILLS AND IF THE CLAIM IS USED IN AREAS THAT DON'T USE YARD COMPOSTING SYSTEMS THE COMPANY WOULD HAVE TO PROMINENTLY ADVERTISE EITHER THAT COMPOSTING PROGRAMS MAY NOT BE AVAILABLE LOCALLY OR THAT MUNICIPAL COMPOSTING SYSTEMS GENERALLY AREN'T USED IN THE US THE CONSENT AGREEMENT WILL BE PUBLISHED IN THE FEDERAL REGISTER SOON AND BE SUBJECT TO PUBLIC COMMENT FOR 60 DAYS AFTER WHICH THE COMMISSION WILL VOTE ON WHETHER TO MAKE IT FINAL 9301110088 930111 US AND IRAQ APPEAR HEADED FOR SHOWDOWN CHALLENGES AGAINST BORDER UN ARMS INSPECTORS DRAW WASHINGTON'S IRE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HAVING DEFUSED THEIR ARGUMENT OVER ANTIAIRCRAFT MISSILES IRAQ AND THE US ARE HEADING RAPIDLY TOWARD A SHOWDOWN OVER RENEWED IRAQI AGGRESSIVENESS ALONG ITS BORDER WITH KUWAIT AND NEW RESTRICTIONS ON UNITED NATIONS WEAPONS INSPECTORS THESE NEW IRAQI CHALLENGES WHICH ARE LIKELY TO BE DISCUSSED AT THE UN TODAY GUARANTEE THAT IRAQ WILL CLOUD PRESIDENT BUSH'S FINAL WEEK IN OFFICE AND NO MATTER HOW THEY ARE DEALT WITH IN THE NEXT FEW DAYS THEY GUARANTEE THAT PRESIDENTELECT CLINTON WILL INHERIT A ROILING RATHER THAN A QUIET RELATIONSHIP WITH IRAQ THE MOST IMMEDIATE FLASHPOINT IN IRAQ COOLED OVER THE WEEKEND WHEN THE BUSH ADMINISTRATION DECLARED THAT IRAQ HAD HEEDED AN ULTIMATUM FROM THE US AND ITS ALLIES AND MOVED ANTIAIRCRAFT MISSILES THAT WERE THREATENING ALLIED WARPLANES PATROLLING THE SKIES OVER SOUTHERN IRAQ US OFFICIALS SAID YESTERDAY THAT MOST OF THE SOVIETMADE SURFACETOAIR MISSILES HAVE BEEN MOVED OUT OF AREA AND THAT THE FEW THAT REMAIN IN THE REGION AREN'T GROUPED IN THREATENING POSITIONS IN ADDITION OFFICIALS SAID MOST IRAQI WARPLANES HAVE BEEN MOVED AWAY FROM SOUTHERN IRAQ WHERE THEY HAD BEEN PERIODICALLY DARTING INTO AN AREA BANNED TO THEM IN AN APPARENT ATTEMPT TO LURE US WARPLANES INTO RANGE OF THE ANTIAIRCRAFT MISSILES THE NET RESULT OFFICIALS SAID IS THAT THE AREA IS MARKEDLY SAFER FOR ALLIED AIR PATROLS THAN IT WAS JUST A WEEK AGO BUT EVEN AS TEMPERS COOLED OVER THE MISSILES US OFFICIALS WERE GROWING AGITATED OVER TWO NEW CHALLENGES WHICH APPEAR TO CONTINUE A WEEKSOLD PATTERN OF IRAQI PROBING OF AMERICAN AND UN RESOLVE IN ENFORCING THE RESOLUTIONS IRAQ WAS FORCED TO ACCEPT AT THE END OF THE 1991 PERSIAN GULF WAR AT THE END OF LAST WEEK IRAQ TOLD THE UN SPECIAL COMMISSION WHICH IS OVERSEEING THE DESTRUCTION OF IRAQ'S WEAPONS OF MASS DESTRUCTION THAT THE COMMISSION WOULD HAVE TO STOP FLYING ITS OWN AIRCRAFT INTO AND AROUND IRAQ IN CONDUCTING WEAPONS INSPECTIONS THE RIGHT OF INSPECTORS TO USE THEIR OWN AIRCRAFT TO MOVE FREELY AROUND THE COUNTRY AND CONDUCT SURPRISE INSPECTIONS HAS BEEN A CENTRAL DEMAND OF THE UN COMMISSION AS A RESULT AMERICAN OFFICIALS CONSIDER THE IRAQI ACTION AS A SERIOUS ATTEMPT TO UNDERMINE THE INSPECTIONS IT ISN'T CLEAR WHETHER IRAQ IMPOSED THE FLIGHT BAN SIMPLY BECAUSE OF ITS ANXIETY OVER LAST WEEK'S FLAP OVER ANTIAIRCRAFT MISSILES AND NOW WILL LIFT THE BAN OR WHETHER IT INTENDS TO TRY TO IMPOSE IT PERMANENTLY IN ANY EVENT US OFFICIALS ARE PLEASED THAT THE UN SECURITY COUNCIL REACTED QUICKLY AND FORCEFULLY THE COUNCIL MET FRIDAY NIGHT AND ISSUED A STATEMENT DECLARING THAT THE IRAQI BAN ON FLIGHTS WOULD HAVE SERIOUS CONSEQUENCES IF IT CONTINUES LEADERS OF THE UN WEAPONS INSPECTORS ARE LIKELY TO REPORT TO THE SECURITY COUNCIL SOON PERHAPS TODAY ON WHETHER THE BAN CONTINUES AND ON HOW IT IS HINDERING OPERATIONS AT THAT POINT BUSH ADMINISTRATION AIDES SAID THE US FRANCE AND BRITAIN WILL FEEL FREE TO CONSIDER MILITARY ACTION TO FORCE IRAQ TO REVERSE COURSE MEANWHILE US OFFICIALS SAID THERE HAD BEEN A FLAREUP OF IRAQI AGGRESSIVENESS ALONG THE BORDER WITH KUWAIT YESTERDAY MORNING KUWAIT TIME IRAQI TROOPS MOVED INTO A UN POLICE POST ALONG THE BORDER AND CONFISCATED EQUIPMENT THE OFFICIALS SAID THE KUWAITI NEWS AGENCY SAID ABOUT 200 IRAQIS CROSSED THE BORDER TO SEIZE ARMAMENTS INCLUDING SURFACETOSURFACE MISSILES THAT WAS ONLY THE LATEST IN A SERIES OF INCIDENTS ALONG THE BORDER THAT HAVE UNDERSCORED IRAQ'S REFUSAL TO ACCEPT A NEWLY DEMARCATED IRAQIKUWAIT BORDER DRAWN UP BY UN SPECIALISTS TO US OFFICIALS THIS AGGRESSIVE BEHAVIOR SIMPLY CONFIRMS THEIR SUSPICION THAT IRAQI LEADER SADDAM HUSSEIN IS PROBING FOR WEAKNESS IN THE USLED COALITION ALONG ALL FRONTS LAST MONTH THE FOCUS WAS ON THE NORTH AND THE KURDS SAID A SENIOR BUSH ADMINISTRATION AIDE LAST WEEK THE FOCUS WAS SOUTH NOW THE FOCUS SEEMS TO BE MOVING TO THE UN WEAPONS COMMISSION AND THE BORDER SADDAM HUSEIN THIS OFFICIAL SPECULATES APPEARS EITHER TO BE HOPING TO FIND INTERNATIONAL POLITICAL WEAKNESSES THAT HE CAN EXPLOIT LATER TO GET A REDUCTION OF UN ECONOMIC SANCTIONS OR IS HOPING TO WIN POINTS INSIDE AN INCREASINGLY TROUBLED IRAQ FOR STANDING UP TO THE WEST WHATEVER THE MOTIVATION IT NOW SEEMS CLEAR THAT PRESIDENTELECT CLINTON WILL INHERIT A TENSE SITUATION IN IRAQ LIKE PRESIDENT BUSH HE MAY HAVE TO DECIDE HOW LONG HE IS WILLING TO TOLERATE IRAQI CHALLENGES AND PROBES AND WHEN TO PUSH CONFRONTATIONS TO THE BRINK OF MILITARY ACTION IRONICALLY IRAQ SEEMS TO BE GUARANTEEING A STRAINED RELATIONSHIP UNDER MR CLINTON EVEN AS IT IS PROCLAIMING THAT IT LOOKS FORWARD TO MORE CORDIAL RELATIONS WHEN HE TAKES OVER YESTERDAY IRAQ POINTEDLY DENIED THE US CLAIM THAT IT HAD BACKED DOWN IN THE SHOWDOWN OVER ANTIAIRCRAFT MISSILES THE WHITE HOUSE CLAIM THAT IRAQ HAD YIELDED IS NOT TRUE SAID A SPOKESMAN FOR THE RULING REVOLUTIONARY COMMAND COUNCIL ACCORDING TO AN IRAQI NEWS AGENCY DISPATCH THE SPOKESMAN WHO WASN'T IDENTIFIED SAID IRAQ'S PLANES AND MISSILES WERE IN THE PLACES WE DECIDED THEY SHOULD BE ACCORDING TO AN ACCOUNT RELAYED BY THE ASSOCIATED PRESS BUT THE SPOKESMAN ALSO SAID IRAQ IS INTERESTED IN DIALOGUE WITH THE US AND HOPES FOR BETTER RELATIONS WITH THE CLINTON ADMINISTRATION THE IRAQI STATEMENT SUGGESTED THAT THE WHITE HOUSE DECLARATION OF VICTORY IN THE MISSILE STANDOFF MAY BE INTENDED TO BURDEN PRESIDENTELECT CLINTON WITH HIS BUSH'S POLICY WHICH IS GOVERNED BY PERSONAL REASONS AND MOTIVATED BY UNJUSTIFIED HATRED HOWEVER THERE IS LITTLE SIGN THAT MR CLINTON IS INCLINED TO ADOPT A SOFTER LINE TOWARD IRAQ AT LEAST INITIALLY IN FACT SOME OF MR CLINTON'S ADVISERS MAY WELL VIEW CHALLENGES FROM IRAQ EARLY IN THE CLINTON TERM AS A CONVENIENT WAY FOR THE NEW ADMINISTRATION TO DEMONSTRATE THAT IT CAN TAKE TOUGH FOREIGNPOLICY POSITIONS POLITICAL SUPPORT FOR STANDING UP TO SADDAM HUSSEIN RUNS SO DEEP IN THE US THAT SUCH A CONFRONTATION WOULDN'T BE POLITICALLY RISKY FOR A NEW PRESIDENT 9301110087 930111 CHRISTOPHER CONFIRMATION FACES A POSSIBLE HITCH WASHINGTON A POTENTIAL CLOUD APPEARED OVER THIS WEEK'S CONFIRMATION HEARINGS FOR SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER WHO HAS BEEN EXPECTED TO SAIL THROUGH THE SENATE EASILY AN ASSOCIATED PRESS REPORT ASSERTED THAT A SEARCH OF JOHNSON ADMINISTRATION ARCHIVES TURNED UP MEMOS SENT TO MR CHRISTOPHER WHILE HE WAS DEPUTY ATTORNEY GENERAL TELLING HIM OF US ARMY SURVEILLANCE OF US CIVILRIGHTS AND ANTIWAR DEMONSTRATORS IN THE 1960S WHEN HE WAS BEING CONFIRMED AS DEPUTY SECRETARY OF STATE AT HEARINGS IN 1977 MR CHRISTOPHER TESTIFIED THAT HE WAS UNAWARE OF THE SURVEILLANCE THERE ISN'T ANY CLEAR EVIDENCE THAT MR CHRISTOPHER ACTUALLY SAW OR READ THE MEMOS AND A SPOKESMAN FOR THE CLINTON TRANSITION SAID THAT MR CHRISTOPHER WHEN INFORMED OF THE REPORT REGARDING THE MEMOS SAID THE INFORMATION DIDN'T CHANGE HIS RECOLLECTION OR CAUSE HIM TO RECONSIDER HIS 1977 TESTIMONY TWO SENIOR STAFFERS OF THE SENATE FOREIGN RELATIONS COMMITTEE SAID THEY WEREN'T AWARE OF THE MEMOS INDICATING THE PANEL HASN'T BEEN PREPARING TO FOCUS ON THE ISSUE STILL THE REPORT IS SURE TO COME UP DURING THE TWO DAYS OF TESTIMONY SCHEDULED FOR MR CHRISTOPHER THIS WEEK 9301110086 930111 LAWYERS PLANNING TO CHALLENGE BUSH OVER POSTAL MOVES BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LAWYERS FOR A MAJORITY OF THE POSTAL SERVICE BOARD PLAN TO CHALLENGE PRESIDENT BUSH IN FEDERAL APPEALS COURT TODAY TO PREVENT HIM FROM FIRING FIVE GOVERNORS WHO DEFIED HIS ORDERS LAST WEEK MR BUSH STEPPED UP THE LEGAL DISPUTE FRIDAY BY TAPPING A LONGTIME FRIEND AS A RECESS APPOINTMENT TO THE GOVERNING PANEL IN RESPONSE TO AN INJUNCTION BARRING HIM FROM DISMISSING THE BOARD MEMBERS THE PRESIDENT NAMED THOMAS LUD ASHLEY TO SUCCEED GOV CROCKER NEVIN WHOSE TERM HAD EXPIRED LATE LAST YEAR BUT WAS SERVING UNTIL A REPLACEMENT WAS CHOSEN THE DISPUTE HAS EMERGED AS A QUESTION OF PRESIDENTIAL POWER OVER INDEPENDENT AGENCIES WHITE HOUSE COUNSEL C BOYDEN GRAY WHO CALLED THE ARGUMENTS FOR THE INDEPENDENCE OF THE AGENCY ENTIRELY UNPERSUASIVE IN A LETTER TO THE GOVERNORS SAID IN AN INTERVIEW THAT THE CURRENT BATTLE IS NOT ANYTHING UNUSUAL THIS ISSUE HAS COME UP AGAIN AND AGAIN AND THAT'S WHAT'S HAPPENING HERE BUT JOHN GRIESEMER ONE OF THE GOVERNORS CHALLENGING MR BUSH SAID THE PRESIDENT'S BID TO QUELL THE BOARD'S DEFIANCE BY APPOINTING MR ASHLEY IS A TERRIBLE THING TO DO TO THE AMERICAN PEOPLE WE WERE JUST BEGINNING TO MAKE SOMETHING OF THE POSTAL SERVICE KENNETH GELLER AN ATTORNEY FOR THE BOARD MAJORITY WILL ARGUE BEFORE THE APPEALS PANEL TODAY THAT THE LOWER COURT INJUNCTION APPEALED BY THE JUSTICE DEPARTMENT WAS PERFECTLY CLEAR AND THE PRESIDENT IS ACTING IN VIOLATION OF THE LAW BY NAMING MR ASHLEY THE JUSTICE DEPARTMENT IS EXPECTED TO REPLY TO MR GELLER'S ARGUMENT TOMORROW THE DEBATE BEGAN LAST FALL WHEN THE JUSTICE DEPARTMENT INFORMED THE POSTAL SERVICE IT WOULDN'T REPRESENT THE AGENCY IN A BATTLE WITH THE INDEPENDENT POSTAL RATE COMMISSION WHICH ESTABLISHED A FIRSTCLASS RATE FOR A ONEOUNCE LETTER LOWER THAN THE 30CENT RATE THE POSTAL SERVICE HAD SOUGHT THE BOARD THEN USED ITS OWN LAWYERS TO SUE TO RAISE THE RATE A MOVE CONSIDERED ILLEGAL BY THE JUSTICE DEPARTMENT WHICH TYPICALLY ACTS AS THE BOARD'S LITIGATOR THE DEPARTMENT'S COMPLAINTS CAPTURED THE ATTENTION OF MR GRAY WHO GOT MR BUSH TO DEMAND THAT THE AGENCY WITHDRAW ITS FILINGS FROM COURT AND THREATENED TO FIRE THE GOVERNORS A MAJORITY OF THE BOARD VOTED TO DEFY HIM MR BUSH'S APPOINTMENT OF MR ASHLEY THE HEAD OF THE AMERICAN BANKERS ASSOCIATION AND A FORMER CONGRESSMAN TO THE PANEL HOWEVER COULD TIP THE BALANCE OF THE BATTLE FROM THE CURRENT 65 AGAINST THE PRESIDENT TO 65 IN HIS FAVOR THE INJUNCTION ISSUED LAST WEEK BY US DISTRICT JUDGE LOUIS OBERDORFER PROHIBITED MR BUSH FROM REMOVING OR CAUSING THE REMOVAL OF THE SIX GOVERNORS WHO CONTINUE TO CHALLENGE HIM INCLUDING MR NEVIN THE WHITE HOUSE CONTENDS THAT SINCE MR NEVIN'S TERM OFFICIALLY ENDED IN DECEMBER THE PRESIDENT IS FREE TO NAME A NEW PERSON TO THE POST APPOINTMENTS FOR THE BOARD ARE NORMALLY SENT TO THE SENATE FOR CONFIRMATION BUT WHEN CONGRESS ISN'T IN SESSION PRESIDENTS CAN MAKE RECESS APPOINTMENTS THE SENATE IS OFFICIALLY RECESSED UNTIL JAN 20 9301110085 930111 EURO DISNEYLAND CUTS FEES TO ATTRACT PARIS RESIDENTS PARIS AP EURO DISNEY SCA OPERATOR OF THE EURO DISNEYLAND THEME PARK OUTSIDE PARIS IS OFFERING SUBSTANTIAL ENTRYFEE DISCOUNTS TO ATTRACT RESIDENTS OF THE PARIS REGION THE COMPANY SAID FRIDAY THE REDUCED FEES 2830 FOR ADULTS AND 19 FOR CHILDREN UNDER 12 ARE AVAILABLE BY MAIL EURO DISNEY SAID THE STANDARD FEES ARE 4245 FOR ADULTS AND 2830 FOR CHILDREN UNDER 12 EURO DISNEY HAD SAID IT WOULD NOT OFFER DISCOUNTS DESPITE DIFFICULTIES IN ATTRACTING VISITORS FROM THE PARIS AREA A STANCE THAT DREW CRITICISM FROM SECURITIES ANALYSTS EURO DISNEY IS 49OWNED BY WALT DISNEY CO IN NOVEMBER EURO DISNEY OFFICIALS SAID EURO DISNEYLAND HAD A LOSS OF 358 MILLION IN THE YEAR ENDED SEPT 30 AND WAS UNLIKELY TO SHOW A PROFIT IN 1993 9301110084 930111 BUSINESS BRIEF U S WEST TO RECORD 18 BILLION CHARGE REPORT LOSS FOR 1992 ENGLEWOOD COLO U S WEST INC SAID IT WILL REPORT A LOSS FOR 1992 AFTER TAKING A 18 BILLION CHARGE FOR RETROACTIVELY ADOPTING TWO NEW ACCOUNTING STANDARDS FOR RETIREE HEALTH CARE AND EMPLOYEE DISABILITY BENEFITS THE REGIONAL BELL TELECOMMUNICATIONS COMPANY EXPECTS TO REPORT 1992 RESULTS LATER THIS MONTH FOR 1991 IT REPORTED NET INCOME OF 553 MILLION OR 138 A SHARE AFTER A RESTRUCTURING CHARGE OF 530 MILLION OR 147 A SHARE THE FIRST OF THE TWO ACCOUNTING RULES STATEMENT 106 OF THE FINANCIAL ACCOUNTING STANDARDS BOARD MANDATES THAT EMPLOYERS REFLECT IN THEIR CURRENT EXPENSES AN ACCRUAL FOR THE COST OF PROVIDING RETIREMENT MEDICAL AND LIFE INSURANCE BENEFITS TO CURRENT AND FUTURE RETIRED EMPLOYEES ADOPTION OF THIS STATEMENT WILL ACCOUNT FOR ALMOST ALL OF THE 18 BILLION CHARGE WHICH REFLECTS A CUMULATIVE LIABILITY FROM PRIOR YEARS IN ADDITION U S WEST WILL ADOPT FASB STATEMENT 112 WHICH REQUIRES THAT EMPLOYERS ACCRUE FOR THE ESTIMATED COSTS OF BENEFITS SUCH AS WORKERS' COMPENSATION AND DISABILITY BENEFITS PROVIDED TO FORMER OR INACTIVE EMPLOYEES WHO AREN'T ELIGIBLE FOR RETIREMENT IN 1993 AND SUBSEQUENT YEARS U S WEST SAID IT EXPECTS THAT OPERATING RESULTS WON'T BE SIGNIFICANTLY DIFFERENT WITH THE ACCOUNTING CHANGES IN EFFECT THAT'S BECAUSE THE COMPANY HAS TAKEN STEPS TO CONTAIN HEALTH CARE COSTS THROUGH MANAGED CARE PROGRAMS AND HAS SET UP TWO TRUSTS TO FUND RETIREE HEALTH COSTS 9301110083 930111 BUSINESS BRIEF ADVANCED MICRO DEVICES NET FALLS 35 BUT PRETAX OPERATING PROFIT RISES 16 SUNNYVALE CALIF ADVANCED MICRO DEVICES INC SAID NET INCOME FOR THE FOURTH QUARTER ENDED DEC 27 FELL 35 TO 696 MILLION OR 73 CENTS A SHARE ALTHOUGH PRETAX OPERATING PROFIT WAS UP 16 IN THE YEARAGO FOURTH QUARTER THE BIG SEMICONDUCTOR MAKER EARNED 1067 MILLION OR 117 A SHARE HOWEVER THE YEARAGO FIGURES WERE PUMPED UP BY A 495 MILLION GAIN FROM ASSET SALES PRETAX OPERATING PROFIT FOR THE LATEST QUARTER TOTALED 732 MILLION COMPARED WITH 632 MILLION IN THE PRIOR YEAR'S QUARTER SALES FOR THE QUARTER ROSE 9 TO 4002 MILLION FROM 3662 MILLION A YEAR EARLIER FOR THE FULL YEAR AMD NET INCOME SURGED 69 TO 245 MILLION OR 257 A SHARE FROM 1453 MILLION OR 153 A SHARE SALES FOR THE YEAR JUMPED 23 TO 151 BILLION FROM 123 BILLION A YEAR AGO AMD SAID CONTINUED SOLID SALES OF ITS AM386 CHIPS WHICH ARE CLONES OF A POPULAR MICROPROCESSOR PRODUCED BY INTEL CORP CONTRIBUTED TO THE STRONG QUARTER AND YEAR THE QUARTERLY RESULTS EXCEEDED MOST ANALYSTS' ESTIMATES BUT WALL STREET'S REACTION WAS MUTED IN NEW YORK STOCK EXCHANGE TRADING AMD SHARES SLIPPED 75 CENTS TO CLOSE AT 1925 MARK EDELSTONE SENIOR SEMICONDUCTOR ANALYST WITH PRUDENTIAL SECURITIES RESEARCH SAID ANY INVESTOR NERVOUSNESS WAS MISPLACED THE MARKET SEEMS TO BE DISCOUNTING AMD'S ABILITY TO GET THE 486 CHIPS TO MARKET AND TO SUSTAIN 386 SALES UNTIL THEN HE SAID BUT THE COMPANY HAS A STRONG BACKLOG AND IT'S WELLPOSITIONED IN SOME OF THE AREAS OF THE CHIP MARKET WITH THE MOST POTENTIAL FOR GROWTH MR EDELSTONE PREDICTS AMD WILL EARN 250 A SHARE FOR THE CURRENT YEAR AND 315 A SHARE FOR 1994 9301110082 930111 POLITICS & POLICY MCCURDY'S FALL ROSTENKOWSKI INQUIRY PORTEND CONTINUED TURMOIL IN HOUSE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE FACES CONTINUED UNREST WITH THE OUSTER OF INTELLIGENCE COMMITTEE CHAIRMAN DAVID MCCURDY AND A FEDERAL CRIMINAL INVESTIGATION REACHING INTO THE PERSONAL FINANCES OF WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI MEANWHILE REPUBLICANS ARE STRUGGLING WITH THEIR OWN TENSIONS BETWEEN PARTY MODERATES AND CONSERVATIVES ENERGIZED BY PRESIDENT BUSH'S DEFEAT AND THE NEW FRESHMAN CLASS MICHIGAN REP FRED UPTON HAS QUIETLY JOINED FORMER DEPUTY WHIP STEVE GUNDERSON OF WISCONSIN IN LEAVING MINORITY WHIP NEWT GINGRICH'S ORGANIZATION AND OHIO REP BILL GRADISON ANOTHER MODERATE WHO LOST HIS PARTY POST TO A CONSERVATIVE LAST MONTH IS SLATED TO ANNOUNCE HIS RESIGNATION FROM CONGRESS TO TAKE A MAJOR LOBBYING POSITION FOR THE HEALTH INSURANCE INDUSTRY MR MCCURDY'S FALL CAME AT THE HANDS OF HOUSE SPEAKER THOMAS FOLEY WHO NAMED THE OKLAHOMAN CHAIRMAN ONLY TWO YEARS AGO AND FELT BETRAYED WHEN THE YOUNGER MAN FLIRTED WITH A RACE AGAINST HIM DURING THE TURMOIL OF THE LAST CONGRESS THE CHANGE ENSURES CONTINUED TURNOVER IN THE SENSITIVE POST FOR THE NEXT FEW YEARS BECAUSE OF THE INHERENT ROTATION OF THE COMMITTEE MEMBERSHIP AND WITH OKLAHOMA SEN DAVID BOREN ENDING HIS LONG TENURE AS SENATE INTELLIGENCE CHAIRMAN BOTH COMMITTEES FACE INTERNAL CHANGES AT A TIME OF NEW LEADERSHIP AT THE CENTRAL INTELLIGENCE AGENCY MR ROSTENKOWSKI'S TROUBLES POSE THEIR OWN SET OF PROBLEMS FOR THE INCOMING CLINTON ADMINISTRATION WHICH MUST MOVE MAJOR TAX AND HEALTH LEGISLATION THROUGH HIS COMMITTEE WHAT BEGAN AS A GRAND JURY INVESTIGATION OF THE HOUSE POST OFFICE NOW EXTENDS TO THE CHICAGO DEMOCRAT'S CAMPAIGN AND PERSONAL FINANCES AND HE IS BEDEVILED BY PRESS ACCOUNTS SUGGESTING THAT HE FACES INDICTMENTS THAT WOULD COST HIM THE CHAIRMANSHIP UNDER DEMOCRATIC RULES I'M WAITING FOR A CONCLUSION MR ROSTENKOWSKI SAID IN AN INTERVIEW YESTERDAY THE THING THAT FRIGHTENS ME IS ALL OF A SUDDEN THEY ISSUE A LOT OF SUBPOENAS AND EVERYONE ASSUMES THERE'S SOMETHING WRONG THEY'RE FISHING US ATTORNEY JAY STEPHENS WHOSE OFFICE IS OVERSEEING THE INQUIRY REFUSED TO COMMENT ON DETAILS OF THE CASE BUT SAID SUBSTANTIAL PROGRESS HAD BEEN MADE WE WILL FOLLOW ALL THE EVIDENCE WHEREVER IT LEADS HE SAID THE HOUSE POST OFFICE INVESTIGATION BEGAN WITH CHARGES OF EMBEZZLEMENT AND DRUG DEALING AMONG LOWLEVEL EMPLOYEES BUT HAS LONG BEEN DRIVEN BY ALLEGATIONS ABOUT HIGHERUPS AND LAWMAKERS USING STAMP TRANSACTIONS TO LAUNDER POLITICAL AND OFFICE FUNDS LATE LAST SUMMER INVESTIGATORS WERE APPARENTLY LOOKING BEYOND THE POST OFFICE BUT WITHHELD ISSUING A RAFT OF NEW SUBPOENAS FOR FINANCIAL DOCUMENTS AND TESTIMONY FROM ROSTENKOWSKI AIDES UNTIL AFTER NOVEMBER'S ELECTION APART FROM STAMP PURCHASES BY MR ROSTENKOWSKI'S OFFICE AND POLITICAL CAMPAIGN ONE POTENTIAL ISSUE IS THE TAX TREATMENT OF RENT PAID BY THE CHAIRMAN'S POLITICAL COMMITTEE ON A CHICAGO OFFICE IN A BUILDING OWNED BY HIMSELF AND HIS SISTERS INVESTIGATORS COMPLAIN OF WHAT THEY ALLEGE IS OBSTRUCTION BY THE ROSTENKOWSKI CAMP THE CHAIRMAN INVOKING THE FIFTH AMENDMENT HAS REFUSED TO TESTIFY AND AT LEAST ONE OF HIS AIDES HAS INVOKED THE SAME CONSTITUTIONAL PROTECTION WHILE BEING REPRESENTED BY A DEFENSE LAWYER PAID FROM THE ROSTENKOWSKI CAMPAIGN TREASURY BY THE SAME TOKEN THOSE CLOSE TO MR ROSTENKOWSKI COUNTER THAT THE SOCALLED WIDENING NET REFLECTS ONLY THE PROSECUTION'S FRUSTRATION IN MAKING A CASE AND IN THE COMING WEEK THE CHAIRMAN'S FORCES ARE LIKELY TO BECOME INCREASINGLY AGGRESSIVE IN WHAT HAS BECOME A PUBLIC RELATIONS WAR OF SORTS WITH MR STEPHENS'S OFFICE I'M NOT UNCOMFORTABLE THERE'S NOTHING THERE SAID MR ROSTENKOWSKI BUT THE CHAIRMAN WHO TURNED 65 THIS MONTH ADMITTED THE STRAIN AFFECTS HIM IT FOGS MY THINKING HE SAID I'M NOT TOTALLY CONCENTRATING ON WHAT'S BEFORE ME APPEARING ON NBC NEWS'S MEET THE PRESS SPEAKER FOLEY SAID HE WAS CONFIDENT OF MR ROSTENKOWSKI'S INNOCENCE AND WARMLY DEFENDED THE CHAIRMAN AS ONE OF THE MOST EXTRAORDINARY LEGISLATORS IN THE CONGRESS HE ADDED I THINK HE'LL GIVE GREAT ENERGY AND DIRECTION TO THE COMMITTEE AS WE GO INTO THE NEW ADMINISTRATION MR FOLEY PLAYED DOWN HIS OWN TENSIONS WITH MR MCCURDY WHOSE GUILE AND RELENTLESS AMBITION HAVE HURT HIM WITH COLLEAGUES AN EARLY SUPPORTER OF PRESIDENTELECT CLINTON THE 42YEAROLD MR MCCURDY REMAINS A BRIGHT AGGRESSIVE VOICE FOR DEMOCRATIC MODERATES AND A FORCE IN THE HOUSE ARMED SERVICES COMMITTEE BUT THE INTELLIGENCE POST WAS A SOURCE OF PRIDE AND THE LOSS FOLLOWS HIS FAILURE TO WIN A COVETED NOMINATION IN THE NEW ADMINISTRATION AS RECENTLY AS LAST MONTH MR MCCURDY TOLD ASSOCIATES THAT HE EXPECTED TO HOLD ON TO THE CHAIRMANSHIP BUT LONG BEFORE FRIDAY'S ANNOUNCEMENT THERE WAS LITTLE DOUBT OF THE SPEAKER'S INTENTIONS THE INCIDENT SIGNALS MR FOLEY'S WILLINGNESS TO PUNISH THOSE HE CONSIDERS DISLOYAL TO HIM AND REP DAN GLICKMAN D KAN WHO IS A FRIEND AND THE NEXT IN LINE ON THE COMMITTEE IS FAVORED TO ASSUME THE CHAIRMANSHIP THIS MONTH 9301110081 930111 HEARD ON THE STREET SMALL STOCKS' CONTINUING RALLY LEAVES TRADERS WITH BIG FEARS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TRADERS ARE SWEATING OUT THE SMALLSTOCK RALLY INSTEAD OF REVELING IN THE NASDAQ MARKET'S 17 GAIN SINCE THE BEGINNING OF OCTOBER THEY'RE FEELING HIGH ANXIETY I'M ALWAYS NERVOUS BUT RIGHT NOW I AM ESPECIALLY NERVOUS SAYS EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD A NEW YORK FIRM THAT TRADES A LOT OF SMALL STOCKS THE MARKET CAN'T GO STRAIGHT UP FOREVER IT'S SCARY THIS TIME OF YEAR SAYS GREG RILEY A SENIOR OVERTHECOUNTER STOCK TRADER AT FIRST BOSTON WE ALL REMEMBER THIS TIME LAST YEAR WHEN THE IPO MARKET GOT FROTHY IT SEEMS LIKE A PATTERN FOR THE MARKET TO BUILD UP AND GO BACK DOWN IN THE FIRST QUARTER TO TRADERS THE SMALLSTOCK MARKET LOOKS INCREASINGLY VULNERABLE TO DISAPPOINTMENTS AND APT TO TURN CHOPPY ANALYSTS SAY THAT THE TRADERS MAY BE RIGHT IN THE WEEKS AHEAD BUT ADD THAT IN THE LONG RUN THEY STILL EXPECT HIGH RETURNS FROM A SMALLSTOCK BULL MARKET THAT COULD LAST SEVERAL YEARS WHILE SMALLER COMPANIES GENERALLY ARE EXPECTED TO POST POSITIVE FOURTHQUARTER PROFITS IN THE NEXT FEW WEEKS THE MARKET IS ALWAYS ON EDGE AFTER A QUARTER ENDS SAYS MARY FARRELL A MARKET STRATEGIST WITH PAINEWEBBER AND THE APPROACHING INAUGURATION OF PRESIDENT CLINTON ONLY ADDS TO THE UNCERTAINTY TRADERS ARE QUICK TO RECALL HOW LAST YEAR THE NASDAQ COMPOSITE INDEX REACHED A FEB 12 HIGH OF 64492 ONLY TO FALL INTO AN EIGHTMONTH SLUMP THE INDEX THEN ROARED BACK TO A RECORD 68185 LAST WEEK BUT SLID THURSDAY AND EASED A FURTHER 015 FRIDAY TO 67721 AS TRADERS FRETTED ABOUT MIDEAST TENSIONS AND LAST WEEK'S EROSION IN BOND PRICES BUT THE SMALL STOCKS FARED BETTER THAN THE LARGE THE DOW JONES INDUSTRIAL AVERAGE HAD A TWODAY DROP OF 16 NERVOUSNESS IN THE MARKET IS PRETTY NORMAL AT THIS STAGE WHEN THE NASDAQ KEEPS HITTING NEW HIGHS YOU KNOW SOMETHING COULD PULL BACK SAYS CLAUDIA MOTT MARKET STRATEGIST FOR PRUDENTIAL SECURITIES THIS NERVOUSNESS IS WHAT IS GOING TO CAUSE A CORRECTION WHICH WOULD BE HEALTHY PETER CANELO COUNTY NATWEST'S CHIEF MARKET STRATEGIST SAYS THE NASDAQ MARKET WILL PROBABLY GO A LITTLE HIGHER BEFORE IT TOPS OUT EVERYBODY IS GETTING CAUTIOUS AND WE USUALLY HAVE TOPS WHEN EVERYBODY IS BULLISH HE SAYS WE MIGHT HAVE A COUPLE OF FAKE SELLOUTS AND THEN CHARGE UP BEFORE A CORRECTION HE SAYS THE MARKET'S STRONG YEAREND FINISH CAME FROM JOHNNYCOMELATELY BUYING AND SHORT COVERING WHEN INVESTORS WHO BET ON STOCKS' DECLINE HAVE TO BUY BACK SHARES TO ACCOUNT FOR BORROWED POSITIONS FUELING THE GAINS WERE MONEY POURING INTO MUTUAL FUNDS AND THE SWITCHING OF PORTFOLIO MONEY AWAY FROM OLD TECHNOLOGY STOCKS ON THE NEW YORK STOCK EXCHANGE TO NEWER TECHNOLOGY STOCKS ON NASDAQ I'M A LITTLE FRIGHTENED IN THE SHORT TERM THERE IS RISK AND A LITTLE TOO MUCH ENTHUSIASM HE SAYS MR CANELO SAYS THE NASDAQ COMPOSITE INDEX COULD REACH 700 OR 710 THAT'S LESS THAN 5 FROM WHERE THE INDEX CURRENTLY STANDS BEFORE A MAJOR CORRECTION THAT'S THE POINT WHERE I WOULD BE WANTING TO GET OUT HE SAYS LAST YEAR THE TOP WAS MADE THE FIRST WEEK OF FEBRUARY MAYBE IT WILL BE THE SAME OR A LITTLE SOONER THIS TIME THERE IS STILL SOME UNTAPPED VALUE IN SMALL STOCKS ANALYSTS SAY ALTHOUGH THE RUSSELL 2000 SMALLSTOCK INDEX NOW TRADES AT 165 TIMES PROJECTED EARNINGS FOR 1993 UP FROM 157 IN NOVEMBER PRUDENTIAL'S MS MOTT SAYS THE GROUP ISN'T OVERPRICED SMALL STOCKS USUALLY TRADE AT MUCH HIGHER P/E MULTIPLES THAN LARGE STOCKS BUT CURRENTLY THE GAP REMAINS FAIRLY NARROW THE RUSSELL 1000 LARGESTOCK INDEX FOR PROJECTED EARNINGS IS TRADING AT A 161 MULTIPLE MS MOTT SAYS THIS MAKES THE SMALLSTOCK MULTIPLE EQUAL TO ONLY 102 TIMES THE LARGESTOCK MULTIPLE REASSURINGLY BELOW THE 107 MEASUREMENT REGISTERED AT AROUND THE TIME OF LAST YEAR'S STOCK PRICE FALLBACK JOHN LAPORTE HEAD OF T ROWE PRICE ASSOCIATES' SMALLCOMPANY NEW HORIZONS FUND SAYS THE VALUATION LEVEL OF SMALL STOCKS HASN'T CHANGED SIGNIFICANTLY EVEN THOUGH THEIR PRICES HAVE RISEN THAT'S BECAUSE EARNINGS ARE RISING TOO IN 1992'S FIRST QUARTER THE AVERAGE MULTIPLE ON SMALL STOCKS HELD IN THE NEW HORIZONS FUND WAS 123 TIMES THE MULTIPLE PREVAILING ON THE S&P 500 THOUGH FOURTHQUARTER RESULTS AREN'T KNOWN YET MR LAPORTE SAYS THE SAME MEASUREMENT CURRENTLY STANDS HIGHER THAN THE 114 REPORTED FOR THE END OF OCTOBER BUT NOT AS HIGH AS 123 SMALLCOMPANY EARNINGS ARE OUTPACING LARGE COMPANIES' EARNINGS OFFSETTING THE FACT THAT SMALLCOMPANY STOCKS ARE RISING FASTER HE SAYS THE RELATIVE VALUATIONS ARE QUITE REASONABLE 9301110080 930111 MANAGER'S JOURNAL SEARS PR DEBACLE SHOWS HOW NOT TO HANDLE A CRISIS BY NAT B READ CRISIS MANAGEMENT AMONG AMERICAN COMPANIES HAS TAKEN A SUDDEN TURN TODAY MORE AND MORE CORPORATE CRISES ARE THE RESULT OF INTERNAL MISMANAGEMENT RATHER THAN EXTERNAL ACCIDENTS THE INSTITUTE OF CRISIS MANAGEMENT BASED IN LOUISVILLE KY ANALYZED 31560 BUSINESS STORIES OVER THE PAST THREE YEARS AND IN 1991 FOUND NEWS REPORTS OF 5708 CRISES CAUSED BY MISMANAGEMENT COMPARED WITH ONLY 4565 ACCOUNTS OF ACCIDENTAL CRISES THIS REPRESENTED A REVERSAL OF THE PATTERN OF 1989 WHEN ACCIDENTAL CRISES OUTNUMBERED MANAGERIAL CRISES 6466 TO 5384 ONE AMERICAN CORPORATION AFTER ANOTHER HAS STUMBLED INTO THE UNWANTED SPOTLIGHT OF PUBLIC CONDEMNATION THE VENERABLE SEARS ROEBUCK & CO IS ONE OF THE MOST RECENT TO SUFFER A PUBLIC RELATIONS CRISIS AFTER ACCUSATIONS LAST JUNE BY THE DEPARTMENTS OF CONSUMER AFFAIRS IN CALIFORNIA AND NEW JERSEY THAT THE COMPANY'S AUTOMOTIVE REPAIR FACILITIES WERE MAKING REPAIRS WHERE NONE WERE NEEDED THE SEARS DEBACLE IS A CASE STUDY IN HOW NOT TO HANDLE A CRISIS THE SCANDAL WAS THE WORST TO ROCK SEARS IN SEVERAL GENERATIONS BECAUSE IT STRUCK AT THE VERY ESSENCE OF THE SEARS EMPIRE TRUST TRUST WAS THE CONCEPT ON WHICH THE COMPANY'S CATALOG RETAILING FINANCIAL SERVICES AND DISCOVER CARD WERE BUILT BUT INSTEAD OF IMMEDIATELY WORKING TO REBUILD THAT TRUST SEARS EXECUTIVES CIRCLED THE WAGONS AND EMBARKED ON A FINGERPOINTING CAMPAIGN THAT EXACERBATED THE PUBLIC'S WORST FEARS WHEN THE ATTORNEY GENERAL OF CALIFORNIA ANNOUNCED THAT HIS OPERATIVES HAD CAUGHT SEARS SELLING CURES FOR AUTOMOBILES THAT HAD NO ILLNESSES STIMULATING A RECORD 3000 CALLS FROM COMPLAINING CUSTOMERS AN ATTORNEY REPRESENTING SEARS DENOUNCED THE CHARGES PUBLICLY AS IF HE WERE ARGUING A CASE IN A COURTROOM HE LABELED THE STATE'S ANNOUNCEMENT A SHAMEFUL CRUSADE TO SMEAR THE RETAILER A SCHEME TO DIVERT ATTENTION FROM THE DEPARTMENT OF CONSUMER AFFAIRS' OWN TROUBLES REELING FROM TIDAL WAVES OF PUBLIC INDIGNATION FOR DAYS AFTER THE CHARGES WERE ANNOUNCED SEARS'S CHAIRMAN EDWARD BRENNAN BELATEDLY APOLOGIZED SORT OF TO THE PUBLIC MISTAKES MAY HAVE OCCURRED HE HEDGED HE SAID THAT AN ACCEPTED INDUSTRY PRACTICE WAS BEING CHALLENGED BY THE CONSUMERAFFAIRS BUREAU AND HE STOPPED WELL SHORT OF REPUDIATING SEARS'S POLICY OF PAYING COMMISSIONS TO AUTO TECHNICIANS AND EVEN IMPOSING QUOTAS ON THEM ALMOST A WEEK LATER WITH THE HEAT GROWING HE FINALLY HAD TO DISMANTLE THE COMMISSION SYSTEM ITSELF HOW DOES A COMPANY OR ANY ORGANIZATION AVOID STUMBLING INTO SUCH A MANAGEMENTCAUSED CRISIS WHAT LESSONS CAN BE LEARNED FROM THE SEARS EXAMPLE THE FIRST LESSON IS BEST STATED IN A CLASSIC PUBLIC RELATIONS MAXIM PR INVOLVES BOTH PERFORMANCE AND RECOGNITION IT IS POSSIBLE TO BOAST EXCELLENT PERFORMANCE WITHOUT BEING PROPERLY RECOGNIZED BUT IT IS NOT POSSIBLE TO EARN RECOGNITION THAT IS NOT BASED ON SOLID PERFORMANCE WOE BETIDE THE ORGANIZATION THAT TRIES TO GET THE R WITHOUT THE P SOLID ETHICAL PERFORMANCE MUST BE A WAY OF LIFE IN ANY ORGANIZATION THE REPUTATION OF A PRODUCT OR SERVICE CANNOT BE DELEGATED TO THE PUBLIC RELATIONS DEPARTMENT AT SEARS THE POLICY OF PAYING COMMISSIONS TO TECHNICIANS AND DEMANDING QUOTAS WAS THE SMOLDERING EMBER THAT HAD SPARKED THE EXPLOSION WHY HAD SEARS ALLOWED SUCH A BASIC CONFLICT OF INTEREST INTO ITS POLICY MANUAL TO BEGIN WITH WHY WASN'T THIS FUNDAMENTAL FLAW IN SERVING THE CUSTOMER PROTESTED BY THE ENTIRE MANAGEMENT STRUCTURE WHATEVER THE REASONS SEARS'S AUTOMOTIVE CENTER CRISIS OCCURRED WHEN THAT POLICY WENT INTO EFFECT NOT WHEN THE POLICY'S CONSEQUENCES SHOT THE COMPANY IN ITS OWN CORPORATE FOOT THE SECOND LESSON THEN IS THAT THE TIME TO PREPARE FOR A CRISIS IS BEFORE IT HAPPENS CRISES ARE INEVITABLE IN ANY LARGE ORGANIZATION SO MANAGEMENT SHOULD BE PREPARED WITH A CRISIS PLAN THAT IS THOUGHTFULLY DRAFTED AND REGULARLY REHEARSED FOR YEARS THE CALIFORNIA DEPARTMENT OF CONSUMER AFFAIRS HAD BEEN COMPLAINING TO SEARS ABOUT ITS AUTO REPAIRS SO SEARS HAD YEARS TO FIX THE PROBLEM OR GET READY TO ANSWER FOR IT SEARS HAD MONTHS OF RUMBLINGS BEFORE THE ATTORNEY GENERAL'S ANNOUNCEMENT YET IT HAD NO CONTINGENCY PLAN IN PLACE THE THIRD LESSON IS THAT WHEN A COMPANY RESPONDS TO A CRISIS IT MUST DO SO QUICKLY AND WITH AUTHORITY SEARS LIKE EXXON IN ITS VALDEZ DEBACLE RESPONDED IN AN ESCALATING FASHION NOT INVOLVING THE CEO FOR SEVERAL DAYS IT TRIED TO PLAY DOWN THE CHARGES AND DEFENDED ITS FLAWED POLICIES SEARS'S INITIAL RESPONSE WASN'T EVEN ATTRIBUTED IT WAS A NEWS RELEASE QUOTING A SEARS SPOKESMAN SAYING WE BELIEVE THAT THE BUREAU'S UNDERCOVER INVESTIGATION WAS VERY SERIOUSLY FLAWED AND SIMPLY DOES NOT SUPPORT THE ALLEGATIONS DON'T MAKE THE SEARS MISTAKE WHEN RESPONDING TO A CRISIS TELL THE PUBLIC WHAT HAPPENED AND WHY APOLOGIZE WITH NO CROSSED FINGERS THEN SAY WHAT YOU'RE GOING TO DO TO MAKE SURE IT DOESN'T HAPPEN AGAIN IN SHORT TELL THE TRUTH LEAD WITH YOUR CEO OR A TOP EXECUTIVE AS THE PUBLIC FACE TO YOUR RESPONSE AND TELL THE WORLD IN A NONONSENSE WAY WHAT STRONG STEPS YOU'RE GOING TO TAKE TO CORRECT THE MATTER RESOLVE THAT YOUR CRISIS MANAGEMENT WILL INSPIRE CRITICS TO WRITE NEWSPAPER ARTICLES ABOUT HOW WISELY YOU RESPONDED IN YOUR HOUR OF ORDEAL NOT AS HERE HOW UNWISELY MR READ PRINCIPAL OF A PUBLIC RELATIONS AGENCY IN PASADENA CALIF WAS FORMERLY A DISTRICT PUBLIC RELATIONS MANAGER FOR SEARS 9301110079 930111 AFTER FIRST POISONING WELLCOME WAITED BEFORE ORDERING A RECALL OF SUDAFED BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL SHOULD BURROUGHS WELLCOME CO HAVE RECALLED SUDAFED 12HOUR CAPSULES AS SOON AS IT LEARNED OF JENNIFER MELING'S POISONING IN A CALCULATED RISK THE COMPANY DELAYED A RECALL AND IN THE END LOST ITS GAMBLE TWO PEOPLE DIED THE COMPANY WAS SUED FOR NEGLIGENCE BY FAMILIES OF BOTH VICTIMS AND BURROUGHS WELLCOME SETTLED BOTH SUITS FOR UNDISCLOSED AMOUNTS THE COMPANY HAD TO LAUNCH ITS 17 MILLION RECALL OF SUDAFED ANYWAY AN ATTORNEY FOR THE COMPANY WHICH IS BASED IN RESEARCH TRIANGLE PARK NC AND WHICH IS A UNIT OF WELLCOME PLC IN LONDON SAYS THAT AT THE TIME OF JENNIFER'S POISONING THERE WASN'T ANY SOLID EVIDENCE THAT CYANIDE HAD BEEN PUT IN OTHER SUDAFED PACKAGES LOCAL POLICE WERE TREATING THE CASE AS AN ISOLATED INCIDENT OF ATTEMPTED MURDER HE SAYS CRITICS OF THE COMPANY SAY IT WASN'T THAT SIMPLE BURROUGHS WELLCOME FIRST LEARNED OF THE CASE FEB 6 1991 WHEN KURT STOCKMAN A COMPANY SALESMAN CALLED ON T HIAN POUW A DOCTOR WHO HAD TREATED JENNIFER DR POUW DESCRIBED JENNIFER'S POISONING INCLUDING THE FACT THAT THE SERIAL NUMBER ON THE SUDAFED BOX DIDN'T MATCH THE NUMBER ON THE BLISTER PACK INSIDE THAT OFTEN INDICATES BROAD PRODUCT TAMPERING ACCORDING TO THE BURROUGHS WELLCOME LAWYER DR POUW NEVER EXPLICITLY TOLD THE COMPANY SALESMAN TO RECALL SUDAFED DR POUW SAYS HE EXPLAINED THE CASE SO THOROUGHLY THAT HE THOUGHT IT WAS CRYSTAL CLEAR THE PRODUCT SHOULD BE RECALLED IT WAS SELFEVIDENT DR POUW SAYS POLICE IN TUMWATER WASH ALSO WORRIED THAT MORE SUDAFED PACKAGES MIGHT BE LACED WITH POISON DETECTIVE JEFFREY OEHLERICH VISITED THE STORE WHERE THE MELINGS' SUDAFED HAD BEEN PURCHASED AND THAT STORE PROMPTLY CLEARED ITS SHELVES OF SUDAFED 12HOUR CAPSULES MR OEHLERICH ALSO PHONED BURROUGHS WELLCOME IN NORTH CAROLINA TELLING THE COMPANY ABOUT THE MISMATCHED SERIAL NUMBERS THE BURROUGHS WELLCOME DECISION TO MAKE NO RECALL OR PUBLIC ANNOUNCEMENT AFTER THE FIRST POISONING WAS MADE BY PHILLIP TRACY PRESIDENT OF THE US COMPANY HE DECLINES TO BE INTERVIEWED THE COMPANY LAWYER SAYS MISMATCHED SERIAL NUMBERS MIGHT NOT INDICATE TAMPERING PEOPLE OFTEN MIX UP THEIR BOXES HE SAYS ADDING THAT THE FOOD AND DRUG ADMINISTRATION AFTER CONFERRING WITH TUMWATER POLICE AND THE COMPANY CONCURRED IN THE DECISION AGAINST AN EARLY RECALL WHEN THE SECOND POISONING WAS DISCOVERED AND THE FDA FOUND IT INVOLVED ANOTHER SUDAFED BOX WITH MISMATCHED NUMBERS BURROUGHS WELLCOME LAUNCHED ITS RECALL SEE RELATED STORY BAD MEDICINE CYANIDE POISONING CASE IN THE NORTHWEST LEADS FBI ON A TWISTED TRAIL TAINTED SUDAFED KILLED TWO BUT AGENTS ZEROED IN ON SPOUSE OF A SURVIVOR ONE INDISCREET CONVERSATION WSJ JAN 11 1993 9301110078 930111 REVIEW & OUTLOOK EDITORIAL ECONOMIC RADICALS ONE OF THE ENDURING MUDDLES OF POLITICS IS OVER NOMENCLATURE POLITICAL FACTIONS ARE BLITHELY BRANDED AS RIGHTIST OR REACTIONARY OR CONSERVATIVE OR RADICAL THE GRAND CONFUSIONS OF RUSSIAN POLITICS MAY AT LAST HAVE CLARIFIED ONE ASPECT OF THIS PROBLEM ITS NEW PRIME MINISTER VIKTOR CHERNOMYRDIN DESCRIBED AS A CONSERVATIVE HAS JUST IMPOSED PRICE CONTROLS ON A WIDE RANGE OF BASIC FOODS READING THROUGH AN AP ACCOUNT OF THIS WE CAME UPON COMMENTARY FROM SERGEI ZVEROV WHO IS DESCRIBED AS A RADICAL ECONOMIST WE WERE STRUCK BY THE VIEWS OF A RADICAL RUSSIAN ECONOMIST ON PRICE CONTROLS HE SAID IT IS SUICIDAL FOR THE GOVERNMENT THE PRICE REGULATION IS LIKELY TO RESULT IN THE REDUCTION OF FOODSTUFF PRODUCTION BECAUSE THE CONTROLS IF ENFORCED WILL TURN FACTORIES INTO LOSSMAKING ENTERPRISES THE LIKELY OUTCOME IS THAT INEXPENSIVE GOODS WILL DISAPPEAR FROM SHOPS AND ONLY LUXURY GOODS WILL BE PRODUCED THE RADICAL MR ZVEROV'S VIEWS OF PRICE CONTROLS REFLECT EXACTLY THE VIEWS OF CONSERVATIVE US ECONOMIC THINKERS IN THE US IT IS LIBERALS WHO MOST OFTEN FAVOR PRICE CONTROLS ON ECONOMIC ACTIVITY AS JIMMY CARTER DID WITH THE ENERGY MARKET AND AS THE DEMOCRATS AND APPARENTLY BILL CLINTON NOW PROPOSE TO DO WITH PRICES FOR DRUGS AND HEALTH CARE THIS MEANS THEN THAT THE FREEMARKET RADICALS IN RUSSIA AND THE FREEMARKET CONSERVATIVES IN THE US ARE IN MOST RESPECTS PHILOSOPHICALLY ALIGNED SO THAT MAKES US EITHER RADICAL CONSERVATIVES OR CONSERVATIVE RADICALS WHERE THIS LEAVES AMERICA'S LIBERALS WE'RE NOT SURE 9301110077 930111 REVIEW & OUTLOOK EDITORIAL LAWYERS DISABLE DISABILITY HALF A YEAR INTO THE EMPLOYMENT RULES UNDER THE AMERICANS WITH DISABILITIES ACT IT IS CLEAR THAT THE ADA IS ABOUT EMPLOYEE GRIEVANCES AND NOT SO MUCH ABOUT BARRIERS TO GETTING A JOB IN THE FIRST PLACE THAT MIGHT SURPRISE SOME WHO RECALL THE TALK ABOUT 20PLUS MILLION DENIED ENTRY TO THE WORKPLACE DURING DEBATE OVER THE LEGISLATION A FEW YEARS AGO NOW THAT'S A GENERALIZATION AND BEFORE WE GO ANY FURTHER LET'S STIPULATE THAT MANY ABLE AND INTELLIGENT APPLICANTS SUFFER FROM UNDUE PREJUDICE BECAUSE THEIR BODIES DON'T HAVE EVERY WORKING PART IN A WORLD OF PERFECT COMPETITION SMART EMPLOYERS WOULD HIRE SUCH PEOPLE UNTIL THEIR WAGES AND OPPORTUNITIES WERE BID UP TO THE FULL VALUE OF THEIR CONTRIBUTION BUT WE RECOGNIZE SHORTCOMINGS IN THE ECONOMIC SYSTEM THAT ARE GRIST FOR REMEDIES SUCH AS ADA THAT SAID LEGITIMATE DOUBTS HAVE ATTACHED TO THIS LAW SINCE IT WAS FIRST HATCHED AND SOME OF THEM ARE STILL IN ORDER THE BASIC WORRY IS THAT ADA LIKE A HOST OF OTHER STATUTES AND JUDICIAL CONCEPTS ASSIGNS VICTIM STATUS TO A CLASS OF AMERICANS WHO THEN BECOME A LEGAL BATTERING RAM AGAINST THE ENTERPRISES THAT CREATE THE WEALTH THAT SUSTAINS US ALL ADA CLAIMS TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ARE NOW TOTALING ABOUT 1000 A MONTH AND IT IS LIKELY GIVEN THE RANGE OF OTHER COMPLAINTS RACE SEX AGE NOW REACHING EEOC THAT THE AGENCY ISN'T GOING TO BE ABLE TO LOOK INTO MANY OF THEM THAT ACCORDING TO CONSULTANTS IN THE FIELD IS LIKELY TO LEAD TO ROUTINE ISSUANCE OF RIGHT TO SUE LETTERS SIX MONTHS AFTER FILINGS BECAUSE NO INVESTIGATION WILL HAVE DISCOUNTED THEM THE MOST RECENT STATISTICS FROM EEOC SHOW THAT 45 OF THE COMPLAINTS STEM FROM FIRINGS AND AN ADDITIONAL 20 FROM CASES INVOLVING HARASSMENT DISCIPLINE SUSPENSION OR FAILURE TO PROMOTE THOSE SOUND LIKE LITIGATION WAITING TO HAPPEN ANOTHER BIG BLOCK TAKES IN FAILURE TO MAKE FRINGE BENEFITS ACCESSIBLE A WORKOUT ROOM FOR INSTANCE OR TO PROVIDE AIDS TO THE DEAF AND BLIND THAT WOULD ALLOW THEM TO ATTEND TRAINING SESSIONS WITH EVERYONE ELSE ONLY 20 OF THE FILINGS DEAL WITH FAILURE TO HIRE OR REHIRE THE DISABILITIES UNDERLYING THE CLAIMS ALSO SUGGEST TROUBLE THOUGH THE TYPES OF CASES THAT AROUSED THE MOST CONTROVERSY DURING THE ADA DEBATE ALCOHOLISM DRUG ADDICTION HIV INFECTION AND SEXUAL ABNORMALITIES ACCOUNT FOR LESS THAN 10 BETWEEN THEM THE LAWYERDRIVEN VARIETY OF CAUSES ARE PROMINENT THE BIGGEST SINGLE CATEGORY 14 IS BACK IMPAIRMENT A NOTORIOUSLY MURKY AREA NEXT UP IS MENTAL ILLNESS 83 WHICH INCLUDES STRESS A WHOPPING 44 OF CASES ARE CLASSIFIED AS OTHER SOME FLIGHT ATTENDANTS ALREADY PURSUING A CASE AGAINST AIRLINE WEIGHT POLICY FOLLOWED UP WITH AN ADA FILING ON THE BASIS OF DIETPILL DEPENDENCY ALREADY WE SEE SIGNS THAT LAWYERS ARE RUNNING THE SHOW THE GREATEST NUMBER OF EARLY ADA FILINGS COME FROM SUEHAPPY TEXAS AN ACTIVE EEOC FIELD OFFICE CAN BRING IN A BOUNTY OF ALLEGATIONS VETERANS OF THE WARS OVER WORKERCOMPENSATION LIABILITY WILL RECOGNIZE WHAT'S HAPPENING HERE RICHARD PIMENTEL WHO ADVISES EMPLOYERS ON SUCH MATTERS FIGURES THAT 95 OF ADA BAD BACK CASES COME FROM THE WORKERCOMP ARENA BECAUSE ADA DOESN'T ASK WHETHER A DISABILITY STEMS FROM ONTHEJOB INJURY NO HARD DATA WILL ESTABLISH THE LINKAGE BUT THE CALIFORNIABASED MR PIMENTEL URGES CLIENTS TO BEWARE INSPIRING AN ADA ACTION WITH CAVALIER HANDLING OF A JOBINJURY CLAIM THE LAW MAKES THAT ONE OF THE GROUNDS THIS CAN PUT THE BOSS IN A BIND HOWEVER STRESS FILINGS FOR EXAMPLE ARE USUALLY REBUFFED BY SUSPICIOUS BUSINESS AND THEIR INSURERS WITH THOSE WHO MAKE THEM BEING TERMINATED IF THEY AREN'T ALREADY OUT THE DOOR IN STATES THAT ENCOURAGE SUCH CLAIMS SUCH AS CALIFORNIA THEY OFTEN FOLLOW A FIRING BECAUSE THE STRESS CLAIMANT IS PROBABLY ALREADY ARMED WITH A LAWYER THE ADA IS A NATURAL NEXT RECOURSE BUT WHAT IS THE ALTERNATIVE PERSONNEL STRATEGY MOST EMPLOYERS ARE LEARNING HOW TO ACCOMMODATE THE PHYSICALLY HANDICAPPED PSYCHOLOGICAL CASES EVEN LEGITIMATE ONES ARE HARDER FEDERAL CONTRACTORS HAVE HAD TO MEET A BIAS TEST FOR ALL KINDS OF DISABILITIES SINCE THE 1970S SO THIS ISN'T UNCHARTED TERRITORY YET EVEN SOME ACTIVE IN HELPING THE DISABLED ADMIT THAT MENTAL ILLNESS ABSENT PROPER MEDICAL TREATMENT CAN POSE EMPLOYABILITY PROBLEMS THAT ARE BEYOND A BUSINESS'S ADAPTABILITY AN ARTICLE LAST YEAR IN THE AMERICAN ENTERPRISE INSTITUTE'S MAGAZINE ARGUED THAT MENTAL IMPAIRMENTS TYPIFY THE HARDCORE JOBLESS CASES AMONG THE DISABLED THESE SITUATIONS MAY NOT LEND THEMSELVES EASILY TO THE KIND OF REASONABLE ACCOMMODATIONS THAT ADA SEEKS TO IDENTIFY AND REQUIRE BUT WILL THE COURTS BE AS UNYIELDING AS MANY OF THE LEGAL ADVOCATES THAT BRINGS US BACK TO THE CORE ISSUE OF ADA THE LITIGATION THE NATION HAS REACHED A BROAD CONSENSUS IN FAVOR OF EXPANDING OPPORTUNITIES EVEN WHEN IT MEANS A BURDEN THAT MUST BE SHARED IN MINOR COSTS AND INEFFICIENCIES FOR THE GENERAL POPULATION WHAT IS NOT DESIRABLE AND IS NOT AFFORDABLE IS A PUNITIVE AND EXTREME APPLICATION OF THE LAW PRECISELY THE KIND OF JUSTICE WE SEE TOO OFTEN IN THE CIVIL COURTS 9301110076 930111 INTERNATIONAL BRIEF SIEMENS AG GERMAN DUTCH FIRMS DROP PLANS TO LINK TWO BUSINESSES GERMAN ELECTRONICS GIANT SIEMENS AG AND PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID THEY NO LONGER INTEND TO COMBINE THEIR OPTICAL FIBER AND TELECOMMUNICATIONS CABLE ACTIVITIES THE TWO SAID THEY WOULD WITHDRAW THEIR REQUEST TO CREATE TWO JOINTLY CONTROLLED COMPANIES NOW BEFORE THE EUROPEAN COMMUNITY COMMISSION THE COMMISSION LAST MONTH EXPRESSED SERIOUS DOUBTS ABOUT THE LINKUP AND SAID IT WOULD LAUNCH A PROBE THAT WOULD PARTICULARLY FOCUS ON THE NARROW SUPPLY STRUCTURE THE VENTURE WOULD CREATE THE TWO COMPANIES SAID IN A JOINT STATEMENT THAT ECONOMIC FUNDAMENTALS FOR THE COMBINATION NO LONGER EXIST THEY DIDN'T ELABORATE 9301110075 930111 INTERNATIONAL PIONEER ELECTRONIC FORCES 35 MANAGERS TO RETIRE EARLY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DESPITE A SEVERE RECESSION JAPAN'S BLUECHIP COMPANIES HAVE GAMELY KEPT UP THE APPEARANCE OF PRESERVING THEIR HALLMARK LIFETIMEEMPLOYMENT SYSTEM WHILE ACKNOWLEDGING THE NEED TO REDUCE BLOATED PAYROLLS EXECUTIVES HAVE INSISTED THEY WOULD RELY ON NORMAL ATTRITION AND VOLUNTARY RETIREMENTS BUT NOW PIONEER ELECTRONIC CORP HAS GIVEN UP THE PRETENSE THE MAKER OF AUDIO AND VIDEO EQUIPMENT CONFIRMED THAT IT ESSENTIALLY DISMISSED 35 MANAGERS EFFECTIVE AT THE END OF THIS MONTH OFFICIALLY THE COMPANY PORTRAYS THE MOVE AS AN EARLYRETIREMENT PROGRAM BUT WHEN THE EMPLOYEES ALL OVER THE AGE OF 50 WERE TAPPED IN DECEMBER IT WAS MADE CLEAR THAT THE PLAN WASN'T VOLUNTARY IF THEY HAD REFUSED WE WOULD CONTINUE TRYING TO PERSUADE THEM A PIONEER SPOKESMAN SAID EVENTUALLY THEY HAD NO CHOICE BUT TO LEAVE PIONEER ALL 35 ACCEPTED THE PACKAGE WHICH INCLUDES COMPENSATION WORTH AS MUCH AS TWO YEARS' PAY THE SPOKESMAN SAID ADDING THAT THE COMPANY WILL TRY TO FIND OTHER JOBS FOR THEM PIONEER EMPLOYEES NORMALLY ARE EXPECTED TO RETIRE AT AGE 60 LARGELY BECAUSE OF THE LIFETIMEEMPLOYMENT SYSTEM JAPAN'S UNEMPLOYMENT RATE IS CURRENTLY ONLY 23 OF THE WORK FORCE BUT SOME SMALLER JAPANESE COMPANIES ESPECIALLY SUPPLIERS HAVE RESORTED TO OUTRIGHT LAYOFFS IN RECENT MONTHS EVEN WELLKNOWN COMPANIES ARE RUMORED TO BE QUIETLY FORCING PEOPLE OUT ANALYSTS SAID PIONEER THE INDUSTRY LEADER IN LASER VIDEODISK PLAYERS IS THE FIRST HOUSEHOLDNAME COMPANY DURING THIS DOWNTURN TO OPENLY FORCE PEOPLE OUT THIS COULD HAVE A RIPPLE EFFECT SAID CHIHARU SHIMA AN ECONOMIST AT UBSPHILIPS & DREW INTERNATIONAL LTD WHO HAS STUDIED JAPAN'S LABOR MARKET THERE ARE SO MANY COMPANIES UNDER PRESSURE TO REDUCE LABOR COSTS WHILE A PIONEER SPOKESMAN SAID THE COMPANY HAS NO PLANS TO SHED ANY MORE OF ITS 17000 EMPLOYEES THE ANNOUNCEMENT HAS MEANING FOR OTHER EMPLOYEES EVEN THOUGH YOU ARE PROMOTED TO MANAGER YOU ARE EXPECTED TO DO YOUR BEST JAPANESE WHITECOLLAR EMPLOYEES RARELY HAVE JOB DESCRIPTIONS AND JAPANESE OFFICES ARE IN SHARP CONTRAST TO THE NATION'S FACTORIES CONSIDERED HIGHLY INEFFICIENT THAT'S ONE OF THE JAPANESE CHARACTERISTICS ONCE YOU ARE PROMOTED TO MANAGER YOUR DAILY BUSINESS ACTIVITIES AREN'T EVALUATED AS SEVERELY AS COMPARED WITH WESTERN COMPANIES THE PIONEER SPOKESMAN EXPLAINED HE SAID MANY OF THE 35 PEOPLE HAVE THE TITLE OF KACHO OR SECTION CHIEF BUT HAVE NO PEOPLE WORKING UNDER THEM MANY ARE SOCALLED MADOGIWA ZOKU JAPANESE LINGO FOR PEOPLE WHO SIT BY THE WINDOW WITHOUT CLEAR RESPONSIBILITIES HE SAID THE SPOKESMAN DECLINED TO MAKE ANY OF THE TARGETED EMPLOYEES AVAILABLE FOR COMMENT PIONEER LIKE ALL OF JAPAN'S MAJOR ELECTRONICS COMPANIES FACES SATURATED MARKETS AND INTENSE PRICE COMPETITION IN THE YEAR ENDING MARCH 31 THE COMPANY FORECASTS A 34 DROP IN PRETAX PROFIT TO 218 BILLION YEN 174 MILLION FROM 331 BILLION YEN A YEAR EARLIER 9301110074 930111 WALTON NEPHEW SHORTS WALMART PAINEWEBBER PAYS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALMART STORES INC IS A WALL STREET DARLING BUT DON'T TELL THAT TO THE NEPHEW OF WALMART'S FAMOUS FOUNDER JOHN J ROBSON NEPHEW OF THE LATE SAM WALTON SAYS PAINEWEBBER GROUP INC MISLED HIM INTO SELLING SHORT 403300 SHARES OF WALMART STOCK BETTING AGAINST THE FORTUNES OF THE GIANT RETAIL CHAIN AS WALMART'S STOCK SOARED MR ROBSON'S PAPER LOSSES MOUNTED TO 87 MILLION AND HE TOOK PAINEWEBBER TO ARBITRATION A NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATION PANEL SIDED WITH MR ROBSON IT HAS ORDERED PAINEWEBBER TO PAY HIM DAMAGES OF 97 MILLION THAT'S THE LARGEST AWARD FOR AN INVESTOR IN AN ARBITRATION CASE AGAINST A BROKERAGE FIRM AND THE SECONDLARGEST SECURITIESARBITRATION AWARD EVER SAYS SAMANTHA RABIN OF THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER LAMENTS THE 38YEAROLD MR ROBSON A TULSA OKLA REAL ESTATE DEVELOPER IT'S NOT A VERY GOOD FEELING BEING IN A SHORT POSITION AND WANTING THE STOCK TO DO BAD IT DOESN'T MAKE A LOT OF SENSE KNOWN AMONG THE WALTONS AND OTHERS AS JOE MR ROBSON ADDS THERE WAS SOME PRETTY BIG CONFLICT THERE THE UNUSUAL CASE BEGAN IN 1990 WHEN MR ROBSON DEPOSITED 403300 SHARES OF WALMART STOCK IN AN ACCOUNT OVERSEEN BY STEPHEN J BRADY THEN A BROKER AT PAINEWEBBER SHORTLY AFTER OPENING THE ACCOUNT MR BRADY ADVISED ROBSON THAT HE BELIEVED WALMART STOCK WOULD GO DOWN IN PRICE ACCORDING TO PAPERS MR ROBSON FILED WITH NASD ARBITRATORS IN OKLAHOMA CITY IN AUGUST 1990 AS THE PERSIAN GULF CRISIS ERUPTED THE BROKER RECOMMENDED A TRANSACTION CALLED SHORTING AGAINST THE BOX THAT INVOLVED MR ROBSON SELLING SHORT AN IDENTICAL 403300 SHARES OF WALMART STOCK AGAINST THE SHARES HE HELD IN HIS ACCOUNT IN A SHORT SALE AN INVESTOR SELLS BORROWED SHARES HOPING THAT THE STOCK WILL DECLINE IN PRICE AND HE CAN BUY CHEAPER SHARES LATER TO RETURN TO THE LENDER SHORTING AGAINST THE BOX IS OFTEN A CONSERVATIVE STRATEGY BECAUSE ANY GAINS ON THE SHORT SALE ARE OFFSET BY LOSSES ON THE IDENTICAL NUMBER OF SHARES THE INVESTOR HOLDS BUT WITH A SIZZLING GROWTH STOCK LIKE WALMART THE DANGER OF THE STRATEGY IS THAT THE INVESTOR WILL LOSE OUT ON POTENTIALLY BIG PRICE GAINS IF THE STOCK RISES AND THAT IS WHAT HAPPENED TO MR ROBSON MR ROBSON SOLD SHORT THE 403300 WALMART SHARES AT AN AVERAGE PRICE OF 2544 A SHARE PAPERS HE FILED WITH ARBITRATORS SAID BY MIDOCTOBER 1990 AS WALMART TRADED AT 25625 A SHARE THE PAPERS SAID MR ROBSON DIRECTED MR BRADY TO COVER THE SHORT SALE BY RETURNING THE SHARES TO THE LENDER IF THE STOCK FELL TO AROUND THE 25ASHARE LEVEL IN SPITE OF ROBSON'S INSTRUCTIONS BRADY FAILED TO COVER THE SHORT SALE POSITION PAPERS FILED BY MR ROBSON WITH ARBITRATORS SAID SUBSEQUENT INSTRUCTIONS TO COVER THE SHORT SALE AT A HIGHER PRICE 28 A SHARE ALSO WERE IGNORED THE PAPERS SAID AS THE MONTHS ROLLED BY WALMART STOCK STEADILY CLIMBED BY THE TIME MR ROBSON FILED HIS CLAIM IN OCTOBER 1991 WALMART SHARES HAD SURGED TO ABOUT 47 A SHARE THIS MEANT MR ROBSON COULDN'T COVER HIS SHORT SALE UNLESS HE TOOK A LOSS OF 87 MILLION IN BUYING ADDITIONAL WALMART STOCK OR DISPOSING OF A CHUNK OF HIS WALMART HOLDINGS MR ROBSON CONTENDED THAT THE SHORTING TECHNIQUE WAS UNSUITABLE AND IMPROPERLY INITIATED HE ASKED THE ARBITRATORS TO RESCIND THE TRANSACTION INSTEAD THE THREEMEMBER NASD PANEL WITHOUT COMMENT ORDERED PAINEWEBBER TO PAY 97 MILLION IN DAMAGES AND COSTS INCLUDING ATTORNEY'S FEES ONE ARBITRATOR DISSENTED HOWEVER FAVORING RESCINDING THE TRANSACTION PAINEWEBBER SAYS IT STRONGLY DISAGREED WITH THE DECISION AND IS CONSIDERING AN APPEAL THE FIRM SAYS IT FULLY EXPLAINED THE TRANSACTION TO MR ROBSON WHO IS A SOPHISTICATED AND INTELLIGENT INDIVIDUAL WE ARE CONFIDENT THAT HE UNDERSTOOD THE TRANSACTION THE RULING STUNNED PAINEWEBBER OFFICIALS PEOPLE FAMILIAR WITH THE FIRM SAID INDEED THE BIG BROKERAGE FIRM WAS SO SURE IT WOULD WIN THE CASE THAT IT NEVER SET UP A SPECIFIC RESERVE TO COVER ANY DAMAGES IT MIGHT HAVE TO PAY THE PEOPLE SAID WE DIDN'T THINK THERE WAS ANY WAY IN THE WORLD WE COULD LOSE THIS A PAINEWEBBER OFFICIAL SAID A COMPANY SPOKESMAN DECLINED TO COMMENT MR BRADY WHO NOW IS A BROKER AT SHEARSON LEHMAN BROTHERS INC IN TULSA CALLED THE DECISION A GROSS MISCARRIAGE OF JUSTICE THE 34YEAROLD MR BRADY WHO WASN'T NAMED AS A RESPONDENT THE EQUIVALENT OF A DEFENDANT IN THE ARBITRATION CASE SAID I KNOW WHAT THE FACTS ARE JOE ROBSON KNOWS WHAT THE FACTS ARE THE DECISION IS WRONG HE DECLINED TO ELABORATE EDWARD S KOPPMAN A PARTNER AT AKIN GUMP HAUER & FELD IN DALLAS WHO REPRESENTED MR ROBSON DECLINED TO COMMENT MEANTIME MR ROBSON HASN'T YET CLOSED HIS ACCOUNT AT PAINEWEBBER AND SAYS HE IS STILL SHORT THE 403300 SHARES AND IN THE 15 MONTHS SINCE HE FILED HIS CASE WALMART'S STOCK HAS SOARED STILL HIGHER IT CLOSED FRIDAY AT 59375 A SHARE DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE TRADING THIS MEANS THAT DESPITE THE HUGE AWARD MR ROBSON COULD STILL LOSE MONEY ON THE TRANSACTION BECAUSE IT WOULD COST HIM 137 MILLION AT WALMART'S CURRENT PRICE TO COVER THE SHORT POSITION THE SHELLSHOCKED MR ROBSON HASN'T YET DECIDED WHAT HE IS GOING TO DO AND WHEN I DON'T FEEL COMFORTABLE TALKING ABOUT THIS THING WE DON'T HAVE THE CHECK YET HE SAYS 9301110073 930111 LEISURE & ARTS BOOKSHELF DON'T WAIT FOR THE PBS ADAPTATION BY AMY GAMERMAN UNTIL NOW I NEVER BOTHERED READING JOHN MORTIMER'S BOOKS AFTER SEEING THE PLUSH ADAPTIONS ON PUBLIC TELEVISION RUMPOLE OF THE BAILEY AND PARADISE POSTPONED TO NAME JUST TWO THERE DIDN'T SEEM TO BE MUCH POINT IT'S TAKEN DUNSTER VIKING 296 PAGES 21 THE LATEST WORK BY THIS PROLIFIC FORMER BARRISTER FOR ME TO DISCOVER THE LIVELY CARICATURIST LURKING BEHIND THOSE TONY TV SHOWS THE DUNSTER OF THE TITLE IS A THOROUGHLY REPELLENT JOURNALIST WHO IS TRIED FOR LIBEL WHEN HE ACCUSES A PILLAR OF BRITISH SOCIETY OF HAVING COMMITTED A WORLD WAR II ATROCITY THE BOMBING OF A CHURCH IN THE TINY ITALIAN TOWN OF POMERIGGIO WITH EVERY MAN WOMAN AND CHILD INSIDE YOU NEVER KNEW WITH DUNSTER WHETHER HIS FARFETCHED ALLEGATIONS MIGHT HAVE SOME TRUTH IN THEM SAYS PHILIP PROGMIRE HIS BOYHOOD SIDEKICK AND THE STORY'S NARRATOR PHILIP NO CRUSADER FOR THE TRUTH FARFETCHED OR OTHERWISE HAS HIS CHARACTER SUMMED UP FOR HIM BY HIS DAUGHTER ON THE NOVEL'S SECOND PAGE WELL LET'S FACE IT SAYS SHE YOU ARE A BIT OF A MORAL COWARD AREN'T YOU DUNSTER IS REALLY THE STORY OF DUNSTER AND PHILIP'S ODD FRIENDSHIP FORGED IN A LONDON BOYS' SCHOOL FOR THE UNASSUMING PHILIP DUNSTER'S COMPANIONSHIP LIKE ACNE AND OTHER YOUTHFUL AFFLICTIONS WAS SOMETHING TO BE ENDURED THE FACT OF THE MATTER IS THAT I DIDN'T PICK OUT DUNSTER BUT HE DID DELIBERATELY AND INEXPLICABLY CHOOSE ME HE EXPLAINS HE BECAME AS THE YEARS WENT BY INESCAPABLE AFTER THE TWO END UP AT UNIVERSITY TOGETHER DUNSTER EVER THE ONE FOR THE CRUEL TRUTH AND THE MORE CRUEL THE BETTER WRITES A POISONPEN REVIEW OF HIS PAL IN HAMLET BECAUSE YOU'RE MY FRIEND I HAD TO APPLY THE HIGHEST POSSIBLE STANDARDS HE EXPLAINS DUNSTER ALSO TRASHES BETH PHILIP'S OPHELIA AND HIS OFFSTAGE LOVE THAT DOESN'T STOP HIM FROM FOISTING HIMSELF ON THE COUPLE AS BEST MAN WHEN THEY GET ENGAGED OR FROM INVITING HIMSELF INTO THEIR HOME AS A LODGER A COURTESY HE REPAYS BY LAUNCHING AN AFFAIR WITH HER OF COURSE HE INSISTS ON TELLING PHILIP ALL ABOUT IT YOU'LL FEEL BETTER NOW HE SAYS NOW YOU KNOW THE TRUTH OF COURSE YOU WILL IT'S SHORTLY AFTER THIS THAT PHILIP'S EMPLOYER MEGAPOLIS TELEVISION MAKES THE MISTAKE OF HIRING DUNSTER TO WRITE A SERIES ABOUT WAR CRIMES PHILIP DISCOURAGED FROM AN ACTING CAREER IN LARGE PART BY DUNSTER'S SAVAGELY ACCURATE PAN IS MEGAPOLIS'S ACCOUNTANT TO PHILIP'S DISMAY THE VILE DUNSTER AIMS HIS GUNS AT NONE OTHER THAN THE HEAD OF MEGAPOLIS THE VENERABLE SIR CRISPIN BELLHANGER A DECORATED WAR HERO AND ALLAROUND NICE GUY SIR CRISPIN MOST PEOPLE CALL ME CRIS IS FAMOUS FOR CARRYING HIS OWN TRAY IN THE MEGAPOLIS CANTEEN AND PLOPPING IT DOWN NEXT TO THE LOWLIEST TYPIST PHILIP HIS RIGHTHAND MAN WORSHIPS HIM AND YET IT IS NONE OTHER THAN THE CONGENIAL CRIS DUNSTER CHARGES WHO WAS BEHIND THE POMERIGGIO ATROCITY DUNSTER FLIRTS WITH BIG ISSUES SUCH AS WARTIME MORALITY AND THE MANY SHADES OF GRAY THAT SEPARATE TRUTH FROM FALSEHOOD BUT ITS CHIEF PLEASURES LIE IN WATCHING MR MORTIMER'S ECCENTRICS GO THROUGH THEIR PACES THE BEST HAVE A DICKENSIAN SAVOR LIKE THE SHADY WAR VETERAN WITH ONE FOOT IN THE UNDERWORLD AND A TASTE FOR BOILED SWEETS ONE BIG HAND CAME TOWARDS ME WITH A MINT SQUEEZED IN THE OFFERING POSITION RECOUNTS PHILIP DO YOU CARE FOR A CURIOUSLY STRONG' HE SAID AN OFFER WHICH I DIDN'T LIKE TO REFUSE THE NOVEL CULMINATES IN THE COURTROOM WHERE WE MEET ROBBIE SKEFFINGTON SIR CRIS'S BRILLIANTLY DESPICABLE LAWYER ROBBIE OCCUPIES THE SUMMIT OF HIS PROFESSION IN MR MORTIMER'S WORDS LIKE A GARGOYLE PERCHED ON THE TOP OF A CATHEDRAL SPIRE A SMALL HUNCHED FIGURE WHOSE GOWN WAS CONSTANTLY SLIPPING OFF HIS SHOULDERS HE DOES NOT WOO THE JURORS SO MUCH AS JOSTLE THEM INTO ACCEPTING HIS MOST CAUSTIC COMMENTS IN A TYPICAL FLOURISH HE WRAPS UP THE EXAMINATION OF A WITNESS BY CLEANING HIS NAILS WITH THE SHARPENED POINT OF A PENCIL EVEN PHILIP THE NOVEL'S STRAIGHT MAN SLIPS INTO DEADPAN LOONINESS OF THE MIDDLEAGED WOMAN WHO DIVESTED HIM OF HIS VIRGINITY IN HER BATHROOM DURING A COCKTAIL PARTY HE REFLECTS LOOKING BACK ON IT AFTER SO MANY YEARS I FEEL THAT ON THE WHOLE IT WAS KIND OF HER TO TAKE THE TROUBLE ESPECIALLY ON A BUSY NIGHT WHEN SHE HAD A HOUSE FULL OF GUESTS GIVEN THE AIR OF OUTLANDISHNESS THAT PERVADES DUNSTER IT'S HARD TO BELIEVE THAT ITS FEMALE CHARACTERS PHILIP'S GENIAL HOSTESS NOTWITHSTANDING WERE DRAWN BY THE SAME HAND APART FROM A COLLECTIVE AND UNPICTURESQUE AIR OF SHREWISHNESS THE WOMEN ARE LARGELY FORGETTABLE AN EXCEPTION IS PHILIP'S NEW GIRLFRIEND WHO IS SO NICE AND UNCOMPLICATED THAT SHE BLENDS UNINTENTIONALLY ONE ASSUMES INTO THE NOVEL'S FIGURATIVE WALLPAPER ONE NEVER LEARNS WHY PHILIP'S WIFE BOTHERED TO CHOOSE HIM LET ALONE LEAVE HIM FOR THE NOXIOUS DUNSTER I CAN'T EXPLAIN SHE SAYS VAGUELY IT'S SOMETHING IN ME I DON'T LIKE PARTICULARLY ALTHOUGH A DEFT HAND AT SCHOOLBOY LOYALTIES AND TREACHERY MR MORTIMER IS IN OVER HIS HEAD WHEN IT COMES TO PROBING UNLIKELY SEXUAL IMPULSES BUT PERHAPS HER INFATUATION ISN'T SO VERY HARD TO UNDERSTAND AFTER ALL WHEN IT COMES TO A TRUE RELISH FOR THE GROTESQUE MR MORTIMER LEADS THE PACK 9301110072 930111 IN THE MOOD TO BUY A YACHT BY CHANCE TRY EUROPEAN SEAS EC'S TAX RULES HURT OWNERS OF LUXURY CRAFT REPOS' OTHER BARGAINS HIT MARKET BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL EUROPE IS LOOKING INCREASINGLY LIKE A BUYER'S MARKET FOR YACHTS ON TOP OF THE WEAK ECONOMY NEW TAX RULES SPAWNED BY THE EUROPEAN COMMUNITY'S SINGLE MARKET SPELL TROUBLE FOR MANY YACHT OWNERS THE WAR IN YUGOSLAVIA HAS KILLED A ONCETHRIVING CHARTER BUSINESS IN THE ADRIATIC MARINA FEES MEANWHILE ARE SOARING AND CONSPICUOUS CONSUMPTION IS OUT THERE ARE SOME SERIOUS SELLERS AROUND SAYS NICHOLAS BAKER WHO RUNS THE LONDON OFFICE OF CAMPER & NICHOLSONS YACHT BUILDERS AND BROKERS THERE ARE OBVIOUSLY SOME GOOD DEALS TO BE MADE COMPARED WITH TWO OR THREE YEARS AGO PRICES ARE DOWN 15 TO 25 BROKERS SAY THE PROSPECT OF GOOD DEALS HAS LURED AMERICAN ASIAN AND MIDDLE EASTERN BUYERS BACK TO THE EUROPEAN MARKET OVER THE PAST FEW MONTHS WHILE MANY YACHT BUILDERS ARE HAVING A ROUGH TIME BUSINESS IS STRONG FOR THE BROKERS REPRESENTING HARDPRESSED CLIENTS SADDLED WITH LARGE AND EXPENSIVETOMAINTAIN CRAFT THIS BUYERDRIVEN MARKET IS EXPECTED TO GET A FURTHER BOOST FROM THE EC SINGLE MARKET WHICH ABOLISHED A WIDELY USED TAX BREAK AS OF JAN 1 THE CHANGE COULD MAKE IT MUCH MORE EXPENSIVE TO BE A YACHT OWNER FOR MANY EUROPEANS INDEED UNTIL DEC 31 OWNERS COULD AVOID PAYING THE VALUEADDED TAX ON THEIR BOAT SIMPLY BY MOORING IT IN ANOTHER EVEN NEIGHBORING EC COUNTRY MANY GERMANS AND BELGIANS FOR EXAMPLE HAVE KEPT THEIR BOATS IN THE NETHERLANDS FOR TAXDODGING PURPOSES THIS YEAR HOWEVER FISCAL ADMINISTRATIONS CAN SEEK PROOF THAT THE VAT WHICH IN SOME EC COUNTRIES IS AS HIGH AS 25 HAS BEEN EFFECTIVELY PAID OWNERS WHO CANNOT PROVIDE THAT PROOF MAY FACE A SUBSTANTIAL VAT BILL IF NOT FINES THIS WILL ADD A LOT OF SUPPLY TO THE MARKET BECAUSE OWNERS SIMPLY CANNOT AFFORD TO PAY THE VAT SAYS MAARTEN TEN HOLTER OF DE VALK INTERNATIONAL A EUROPEAN BROKERAGE FIRM SO IF CASH IS NO PROBLEM WHERE SHOULD YOU HUNT FOR THE BEST BARGAINS BROKERS RECOMMEND STARTING WITH BRITAIN AND SCANDINAVIA THE COUNTRIES HARDESTHIT BY THE ECONOMIC DOWNTURN OR YOU MIGHT ASK YOUR BANKER WITH YUPPIES AND OTHER HIGHFLIERS LOSING THEIR JOBS IN DROVES REPOSSESSIONS ARE NOT UNCOMMON A BANK STUCK WITH A YACHT WON'T KNOW WHAT TO DO WITH THE THING AND IS LIKELY TO SEEK TO UNLOAD IT IN A HURRY WE'VE HAD A BUSY YEAR WITH REPOS SAYS CAMPER & NICHOLSON'S MR BAKER THAT'S WHERE THE GREATEST DEALS ARE IF ONE COMES UP YOU HAVE TO ACT QUICK THOUGH TECHNICALLY NOT A REPOSSESSION IT WAS CAMPER & NICHOLSONS THAT SOLD THE LATE ROBERT MAXWELL'S LADY GHISLAINE LAST YEAR TO AN UNIDENTIFIED BUYER IF YOU'RE PLANNING TO BUY NEW THERE ARE INTERESTING PRICES TO BE OBTAINED FROM THE LARGER MASSPRODUCTION YARDS THOUGH BOAT BUILDERS SUCH AS FRANCE'S BENETEAU DENY THEY'RE ENGAGED IN ANY GLOBAL PRICECUTTING MANY DEALERS ARE READY TO OFFER A DEEP DISCOUNT ON THE LISTED PRICE INDUSTRY SOURCES SAY AS A GENERAL RULE THE SMALLER THE BOAT THE DEEPER THE PRICE SLUMP THE MARKET FOR SMALL PRODUCTION YACHTS ANYTHING UNDER 40 FEET OR SO HAS VIRTUALLY CRASHED DEMAND FOR CUSTOMBUILT LUXURY YACHTS ON THE OTHER HAND REMAINS RELATIVELY STRONG INDEED THE ONLY RECESSIONPROOF SEGMENT OF THE MARKET ARE NEW YACHTS CUSTOMBUILT BY A PRESTIGIOUS YARD SUCH AS STANDFAST OR JONGERT IN THE NETHERLANDS THERE ARE STILL SOME PEOPLE AROUND WHO CAN AFFORD THESE BOATS SAYS INGEBORG PAULY AT DAHM INTERNATIONAL A DUESSELDORF BROKERAGE FIRM AND EXCLUSIVE DISTRIBUTOR FOR JONGERT SHE NOTES THAT JONGERT WITH 220 EMPLOYEES CONTINUES TO PRODUCE BOATS AT ITS USUAL RATE OF SIX OR SEVEN A YEAR THE SMALLEST JONGERT MODEL A 70FOOTER SELLS FOR AROUND THREE MILLION DEUTSCHE MARKS 185 MILLION BROKERS TAKE THIS AS PROOF THAT DEMAND AND PRICES ARE DUE TO REBOUND AS SOON AS THE EUROPEAN ECONOMY SHOWS SIGNS OF A PICKUP SOME EVEN SAY BUSINESS HAS BEEN SURPRISINGLY BRISK IN THE PAST THREE MONTHS IN ANY EVENT SAYS MR BAKER THE RICH PROBABLY CAN'T SPELL RECESSION' THE SUPERRICH I MEAN 9301110071 930111 POLITICS & POLICY RESUMESORTING COMPUTER HELPS CLINTON TEAM SCREEN THOUSANDS SEEKING ADMINISTRATION JOBS BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESUMES THEY GET RESUMES HUNDREDS OF THEM EVERY DAY FROM PEOPLE SEEKING MORE THAN 4000 POLITICAL JOBS WITH THE NEW CLINTON ADMINISTRATION THERE'S THE ZOO KEEPER WHO SAYS HE WAS MAULED BY A HIPPOPOTAMUS HE INSISTS HE'S ALL RIGHT NOW OR THE MOTHER WHO SENT IN A COLOR PHOTOGRAPH OF HER DAUGHTER DRESSED FOR HALLOWEEN AS A CLINTON CAMPAIGN BUS SHE'S WILLING TO TAKE ALMOST ANYTHING BOB IS A PERSONAL FAVORITE OF THE 55 VOLUNTEERS WHO WORKING IN TWO SHIFTS FROM 7 AM TO MIDNIGHT SEVEN DAYS A WEEK FEED THE RESUMES INTO A HIGHLY SOPHISTICATED COMPUTER SYSTEM HERE AT TRANSITION HEADQUARTERS BOB SENDS IN A NEW PHOTO OF HIMSELF EVERY DAY BUT FOR EVERY PHOTO FROM BOB THERE ARE A DOZEN SOLEMN RESUMES FROM SERIOUS MEN AND WOMEN MOST OF THEM WITH A STRING OF GRADUATE DEGREES SEEKING SERIOUS WORK IN THE FIRST DEMOCRATIC ADMINISTRATION IN 12 YEARS ON THE 12TH FLOOR OF A NONDESCRIPT OFFICE BUILDING ON VERMONT AVENUE MR CLINTON'S TRANSITION STAFF IS PUTTING TOGETHER THE TEAM THAT WILL RUN THIS COUNTRY FOR AT LEAST THE NEXT FOUR YEARS THERE'S A SENSE OF URGENCY TO THIS TRANSITION WE HAVEN'T SENSED BEFORE SAYS STUART EIZENSTAT WHO WAS A KEY ADVISER TO JIMMY CARTER AND WHO IS NOW AN ACTIVE PARTICIPANT IN THE CLINTON TRANSITION WE KNOW IF WE DON'T DO IT RIGHT AS DEMOCRATS WE'LL BE RIGHT BACK WHERE WE STARTED ON THE OUTSIDE AGAIN LOOKING IN NAMES TO FILL THE CABINET POSTS OF COURSE DIDN'T JUMP OUT OF A COMPUTER THOSE JOBS WENT TO PEOPLE KNOWN TO BILL AND HILLARY CLINTON OR TO CLOSE ASSOCIATES OF ONE OR THE OTHER OR BOTH THE CLINTONS HAVE THE DEEPEST NETWORK OF ANYONE OUTSIDE WASHINGTON I'VE EVER KNOWN SAYS MR EIZENSTAT IT'S JUST LAYERS ON LAYERS IT'S MUCH MORE EXTENSIVE THAN ANYTHING WE EVER HAD THE CLINTON TRANSITION TEAM HOPES TO FILL 100 TOP JOBS BY JAN 20 INAUGURATION DAY THAT'S A LITTLE SLOW BY TRADITIONAL STANDARDS BUT NOT FAR OFF COURSE IN A PRESIDENTIAL DEMOCRACY THESE THINGS TAKE TIME BECAUSE THERE ARE SO MANY JOBS TO FILL IN A PARLIAMENTARY SYSTEM THE TRANSITION IS INSTANTANEOUS BUT IT WORKS ONLY BECAUSE MOST OF THE SENIOR JOBS ARE HELD BY CAREER CIVIL SERVANTS WHO EVERY FEW YEARS PATIENTLY EXPLAIN TO A NEW GROUP OF MINISTERS HOW THINGS REALLY WORK WITH SO MANY JOBS TO FILL NOT TO MENTION 2000 MORE APPOINTMENTS TO A BEWILDERING VARIETY OF BOARDS AND COMMISSIONS THE DANGER FOR ANY NEW ADMINISTRATION IS BECOMING OVERWHELMED YOU HAVE TO FOCUS SHARPLY ON WHAT YOU WANT TO DO FIRST AND PROCEED THEREAFTER STEP BY STEP SAYS ATLANTA LAWYER JACK WATSON WHO RAN THE CARTER TRANSITION AND WHO HAS BEEN CONSULTED BY THE CLINTON PEOPLE ABOUT THIS ONE IF YOU DON'T LOOK OUT HE SAYS YOU BECOME INUNDATED THE COMPUTER SYSTEM HELPS EVERY RESUME EVEN FOR THE ZOO KEEPER WHO HAD THE PROBLEM WITH THE HIPPOPOTAMUS GETS STUFFED INTO IT THE GOAL IS TO COMPUTERIZE 1000 RESUMES A DAY OUT OF ABOUT 2000 THAT COME IN MOST DAYS ONE PROBLEM IS THAT ABOUT HALF OF THE RESUMES THE OFFICE RECEIVES ARE DUPLICATES OF RESUMES THAT HAVE ALREADY BEEN ENTERED AND THEY HAVE TO BE CULLED ONE GUY SAYS SHIRLEY CLARKSON LEADER OF THE DETAIL HAS SENT US NINE ALREADY AND I GUESS WE'LL GET MORE SO FAR THE RESUMESCANNING DETAIL IN THE TRANSITION OFFICE HAS RECEIVED RESUMES FROM ABOUT 20000 PEOPLE PROGRESS IS MARKED ON A WALL THERMOMETER LIKE A UNITED WAY DRIVE WITH PERHAPS 80000 MORE TO COME WE GET EVERYTHING SAYS MS CLARKSON THE DETAIL COMMANDER BOOKLENGTH BIOGRAPHIES VIDEOS PHOTOGRAPHS DRAWINGS THE COMPUTERIZED SYSTEM DESIGNED BY RESUMIX INC OF SANTA CLARA CALIF WILL BECOME MORE USEFUL AS THE CLINTON PEOPLE DIG DEEPER AND DEEPER TO FILL THE HUNDREDS OF SOMETIMES OBSCURE JOBS THAT MUST BE OPERATIONAL TO GET THE NEW ADMINISTRATION UNDER WAY EACH DAY'S BATCH OF RESUMES IS FED PAGE BY PAGE INTO OPTICAL MACHINES THAT CREATE IMAGES OF WHAT THEY HAVE SCANNED FOR THE 35 COMPUTERS BEING OPERATED BY THE DETAIL THE FACT THAT NONE OF THE DATA ARE ENTERED MANUALLY ELIMINATES HUMAN ERROR ACCORDING TO MS CLARKSON WHO IS ON LEAVE AS ASSISTANT TO THE PRESIDENT OF THE UNIVERSITY OF MICHIGAN IT ALSO ELIMINATES HUMAN BIAS IN EARLIER TRANSITIONS MS CLARKSON SAYS VOLUNTEERS WHO DIDN'T LIKE A CANDIDATE'S QUALIFICATIONS WOULD OCCASIONALLY EDIT AN OFFENSIVE RESUME SHE SAYS WE HAVE ALSO ELIMINATED AN ENORMOUS AMOUNT OF PAPERWORK A LIMITED NUMBER OF PROFESSIONALS THEY ARE CALLED SEARCH CONSULTANTS EACH WITH SPECIFIC PROFESSIONAL INTERESTS LOOK THROUGH THE FILES TO MATCH UP JOBS AND CANDIDATES THEY ARE ALL ASSIGNED PASSWORDS TO ENTER THE SYSTEM THE COMPUTER SYSTEM CAN SCAN THOUSANDS OF RESUMES AND COME UP IF NEEDED WITH WHAT THE DESIGNERS OF THE SYSTEM SAY IS THE MOST HIGHLY QUALIFIED CANDIDATE FOR ALMOST ANY AVAILABLE JOB FOR EXAMPLE IF THE CLINTON PEOPLE WANT TO FIND SOMEONE QUALIFIED TO SERVE AS DIRECTOR OF THE DIVISION OF MOLECULAR AND CELLULAR BIOSCIENCES AT THE NATIONAL SCIENCE FOUNDATION THE COMPUTER CAN PLUCK OUT EVERYONE WITH A BACKGROUND IN THOSE SPECIALTIES AND ADD UP FROM THE AVAILABLE INFORMATION HOW MANY YEARS EACH OF THOSE PEOPLE WENT TO SCHOOL IT CAN ALSO DIFFERENTIATE HARVARD COLLEGE FROM HARVARD STREET MARK GEARAN DEPUTY DIRECTOR OF THE TRANSITION TEAM SAYS THE COMPUTER SYSTEM MAKES IT POSSIBLE FOR SOMEONE SENDING IN AN UNSOLICITED UNSPONSORED RESUME TO GET A JOB IF YOU'RE THE CITY MANAGER IN GARDNER MASSACHUSETTS YOU HAVE A CHANCE BUT THE PARTY THAT GAVE THE NATION ANDREW JACKSON AND THE SPOILS SYSTEM ISN'T GOING TO LEAVE THE AWARDING OF ALL THESE JOBS TO A RECOMMENDATION THAT COMES OUT OF A COMPUTER SOMETHING ELSE GOES INTO THE COMPUTER SYSTEM LETTERS OF RECOMMENDATION AND SOME LETTERS COUNT MORE THAN OTHERS A LETTER FROM ONE OF ARKANSAS'S DEMOCRATIC SENATORS DALE BUMPERS AND DAVID PRYOR IS WIDELY BELIEVED TO COUNT MORE THAN A LETTER FROM THE DEAN AT THE ALMA MATER NONCAREER POLITICAL APPOINTMENTS AVAILABLE TO BE FILLED BY THE NEW ADMINISTRATION 9301110070 930111 MARQUEST MEDICAL GETS 65 MILLION FINANCING BY SCHERER HEALTHCARE ENGLEWOOD COLO MARQUEST MEDICAL PRODUCTS INC SAID IT HAD RECEIVED A CAPITAL INFUSION OF AS MUCH AS 65 MILLION IN SECURED LOANS AND OTHER FINANCING FROM SCHERER HEALTHCARE INC ATLANTA IN RETURN SCHERER RECEIVED THE RIGHTS TO ACQUIRE UP TO 60 OF MARQUEST'S STOCK AND APPOINT A MAJORITY TO ITS NINEMEMBER BOARD MARQUEST SAID IT WOULD USE THE FUNDS TO PAY FOR CONTINUING OPERATIONS AND BOLSTER MARKETING AND RESEARCH THE COMPANY ALSO SAID THAT IT WOULD REMAIN AN INDEPENDENT COMPANY WITH ITS STOCK CONTINUING TO TRADE ON THE OVERTHECOUNTER MARKET UNDER THE AGREEMENT SCHERER WILL PROVIDE MARQUEST WITH A 15 MILLION BRIDGE LOAN AND A SUBSEQUENT 5 MILLION LINE OF CREDIT CONVERTIBLE INTO TWO MILLION COMMON SHARES OF MARQUEST WHICH HAD 44 MILLION SHARES OUTSTANDING AS OF OCT 3 THE PACT ALSO GIVES SCHERER WARRANTS TO PURCHASE ABOUT 175 MILLION MARQUEST COMMON SHARES OVER THE NEXT FIVE YEARS AT PRICES RANGING FROM 2 TO 4 A SHARE FOR THE FISCAL SECOND QUARTER ENDED OCT 3 THE COMPANY REPORTED A NET LOSS OF 71 MILLION OR 160 A SHARE COMPARED WITH A LOSS FROM CONTINUING OPERATIONS OF 134000 OR THREE CENTS A SHARE A YEAR EARLIER REVENUE FELL 56 TO 6 MILLION FROM 137 MILLION IN OVERTHECOUNTER TRADING FRIDAY MARQUEST SHARES CLOSED AT 36875 SCHERER CLOSED ON THE NEW YORK STOCK EXCHANGE AT 3375 DOWN 25 CENTS 9301110069 930111 BUSINESS BRIEF DELHAIZE LE LION' SA RETAILER SAYS GROUP SALES CLIMBED BY 5 DURING 1992 BELGIAN RETAILER DELHAIZE LE LION SA SAID 1992 GROUP SALES ROSE 5 TO 326 BILLION BELGIAN FRANCS 967 BILLION FROM 310 BILLION FRANCS A YEAR EARLIER APPROXIMATELY 75 OF GROUP SALES COME FROM ITS US RETAIL UNIT FOOD LION INC DELHAIZE SAID IT EXPECTS FOOD LION TO OPEN 112 NEW STORES IN THE US IN 1993 IT OPENED 131 STORES IN 1992 SALES OF ANOTHER US UNIT SUPER DISCOUNT MARKETS INC FELL TO 2484 MILLION IN 1992 FROM 2536 MILLION IN 1991 BUT THE UNIT WAS PROFITABLE DELHAIZE SAID BELGIAN SALES FOR PARENT COMPANY LAST YEAR ROSE 64 TO 912 BILLION FRANCS FROM 857 BILLION FRANCS IN 1991 IT SAID DELHAIZE SAID IT EXPECTED TO RAISE ITS DIVIDEND AFTER A SHARP RISE IN NET PROFIT DRIVEN BY A ONETIME GAIN FROM THE SALE OF ITS PORTUGESE UNIT 9301110068 930111 ECONOMY JOBLESSNESS HELD STEADY AT 73 FOR DECEMBER JOB GROWTH WAS LIMITED MOSTLY TO SERVICE AREA WORKWEEK INCHED UP BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE RECENT PICKUPS IN CONSUMER CONFIDENCE RETAIL SALES AND MANUFACTURING ACTIVITY THE SLUGGISH JOB PICTURE REMAINS BASICALLY THE SAME THE LABOR DEPARTMENT SAID THE UNEMPLOYMENT RATE WAS 73 OF THE WORK FORCE IN DECEMBER UNCHANGED FROM A REVISED 73 IN NOVEMBER JOB GROWTH WAS FAIRLY LIMITED WITH 64000 NEW JOBS CREATED IN THE ECONOMY NOVEMBER'S JOB GROWTH WAS REVISED DOWNWARD TO 76000 FROM THE 105000 THE DEPARTMENT REPORTED EARLIER YES WE ARE GETTING ECONOMIC GROWTH BUT IT'S NOT ENOUGH TO DECREASE THE UNEMPLOYMENT RATE SAID JOHN SILVIA KEMPER FINANCIAL SERVICES CHIEF ECONOMIST BUT SOME ANALYSTS SAID IT MAY BE ENOUGH TO REDUCE THE PRESSURE ON PRESIDENTELECT CLINTON TO EXPEDITE A MAJOR ECONOMIC STIMULUS PACKAGE THAT'S BECAUSE ALTHOUGH THE COURSE HAS BEEN PAINFULLY SLOW AND ARDUOUS THE LABOR MARKET HAS SHOWN MODEST IMPROVEMENT SINCE THE HUGE LOSS OF 109000 JOBS IN AUGUST PAYROLL EMPLOYMENT HAS INCREASED 226000 I DON'T THINK CLINTON WILL TAKE THE SLOW JOB GROWTH AS A SIGN THAT HE HAS TO RUSH A STIMULUS PACKAGE BUT IT DOES RAISE THE QUESTION SAID DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY MOST OF THE JOB GROWTH IN DECEMBER CAME IN THE SERVICE SECTOR WHICH ADDED 70000 JOBS EMPLOYMENT IN THE GOODSPRODUCING SECTOR WHICH INCLUDES CONSTRUCTION AND MANUFACTURING DECLINED WHILE FOR MANUFACTURING ALONE IT INCREASED BY ONLY 3000 STILL MANUFACTURERS HAVE ADDED JOBS FOR TWO MONTHS IN A ROW AFTER A DISAPPOINTING SUMMER OF HEAVY JOB LOSSES SEASONAL HIRING IN RETAIL TRADE CONTINUED TO LAG BEHIND NORMAL LEVELS THE LABOR DEPARTMENT SAID INCREASING ONLY 15000 EMPLOYMENT AT AUTO DEALERSHIPS AND EATING AND DRINKING PLACES TOOK UP SOME OF THE SLACK FROM OTHER RETAIL OUTLETS THERE WERE JOB LOSSES IN CONSTRUCTION AND GOVERNMENT DURING DECEMBER DECEMBER SAW MANAGEMENT CONTINUE THE TREND OF MEETING HIGHER DEMAND BY GIVING EXISTING WORKERS LONGER HOURS WITH THE MANUFACTURING WORKWEEK EDGING UP TO A FAIRLY HIGH 413 HOURS IN DECEMBER FROM 412 THE MONTH BEFORE ACROSS ALL INDUSTRIES HOWEVER THE AVERAGE WORKWEEK DECLINED IN DECEMBER TO 343 HOURS FROM 346 THE LABOR DEPARTMENT SAID THE DROP WAS DUE TO UNUSUALLY SEVERE WINTER STORMS WORKERS' EARNINGS ALSO DECLINED IN DECEMBER THE FIGURES SUGGEST THAT PERSONAL INCOME AND INDUSTRIAL PRODUCTION WERE WEAK LAST MONTH SEPARATELY WILLIAM G BARRON DEPUTY COMMISSIONER OF THE BUREAU OF LABOR STATISTICS SAID THAT THE UNUSUALLY LARGE DOWNWARD REVISION OF PAYROLL EMPLOYMENT IN ITS ANNUAL BENCHMARK REVISION RELEASED IN JUNE WAS DUE TO IMPROVEMENTS IN REPORTING PROCEDURES RATHER THAN A SURVEY ERROR THE DEPARTMENT'S NUMBERS CAME UNDER SCRUTINY LAST YEAR WHEN REVISED PAYROLL NUMBERS SHOWED THERE WERE 640000 FEWER JOBS IN THE ECONOMY THAN PREVIOUSLY THOUGHT MR BARRON SAID THE RESULTS OF THE DEPARTMENT'S RESEARCH INTO THE LARGE REVISION SHOWED THAT APPROXIMATELY 500000 OF THE 640000 DOWNWARD REVISION WAS THE RESULT OF A ONETIME NONECONOMIC CHANGE ALSO ON FRIDAY THE FEDERAL RESERVE BOARD SAID CONSUMER CREDIT EXPANDED BY 122 BILLION IN NOVEMBER OR AT AN ANNUAL RATE OF 2 THIS INCREASE THE THIRD IN A ROW FOLLOWS A REVISED INCREASE OF 564 MILLION IN OCTOBER A 09 ANNUAL RATE AND SEEMS TO SUGGEST THAT CONSUMERS HAVE BEGUN TO BUY MORE GOODS ON CREDIT THAT COULD REFLECT SLOW JOB AND INCOME GROWTH PUTTING A DAMPER ON CONSUMERS' ABILITY TO BUY WITHOUT GOING INTO DEBT LOANS FOR AUTOMOBILES ROSE 708 BILLION IN NOVEMBER AN ANNUAL RATE OF 33 REVOLVING CREDIT WHICH INCLUDES BANK AND STORE CARDS EDGED UP 100 MILLION OR AT AN ANNUAL RATE OF 05 A CATCHALL CATEGORY THAT INCLUDES LOANS FOR EDUCATION VACATIONS AND HOME IMPROVEMENTS ROSE 413 BILLION OR AT A 23 RATE HERE IS THE LABOR DEPARTMENT'S LATEST EMPLOYMENT REPORT THE FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE SEASONALLY ADJUSTED TOTALS OF CONSUMER INSTALLMENT CREDIT OUTSTANDING FOR NOVEMBER IN BILLIONS AND PERCENTAGE CHANGES FROM OCTOBER AT AN ANNUAL RATE 9301110067 930111 MASTHEAD IS MULTIPLE CHOICE AT HARVARD BUSINESS REVIEW BY RON SUSKIND AND GILBERT FUCHSBERG STAFF REPORTERS OF THE WALL STREET JOURNAL A NEW TOP EXECUTIVE IS HIRED THE CURRENT CHIEF SAYS HE'S STILL NO 1 THE NEW EXECUTIVE SAYS HE'S NO 1 AND THAT THE CURRENT NO 1 IS OUT THE STAFF ISN'T TOLD WHO'S IN CHARGE PUBLIC RELATIONS PEOPLE DON'T KNOW WHAT'S GOING ON KEY PLAYERS TURN ON ANSWERING MACHINES AND DON'T CALL BACK SOUND LIKE A CASE STUDY FOR THE HARVARD BUSINESS REVIEW IT IS THE HARVARD BUSINESS REVIEW INDEED THE CAPTAINS OF AMERICAN INDUSTRY WHO TURN TO THE AUGUST PUBLICATION TO LEARN HOW TO DO THINGS RIGHT CAN NOW TURN TO IT FOR A LESSON IN JUST THE OPPOSITE THE WHOLE THING IS AMAZING SAYS MICHAEL USEEM A PROFESSOR OF SOCIOLOGY AND MANAGEMENT AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL OF BUSINESS MAYBE THE REVIEW IS CONDUCTING SOME KIND OF WEIRD MANAGEMENT LAB STUDY ABOUT HOW NOT TO DO THINGS CALL IT THE CASE OF THE VANISHING EDITOR IT BEGAN UNFOLDING THURSDAY WHEN THE REVIEW ANNOUNCED THE HIRING OF A NEW EXECUTIVE EDITOR WITHOUT EVEN MENTIONING T GEORGE HARRIS WHO HAD BEEN HIRED AS EDITOR ONLY FOUR MONTHS AGO FOLLOWING A PERIOD OF INTERNAL STRIFE UNDER THE PREVIOUS EDITOR ROSABETH MOSS KANTER MR HARRIS THE FORMER EDITOR OF PSYCHOLOGY TODAY AND AMERICAN HEALTH HELPED RECRUIT THE NEW EXECUTIVE EDITOR JOEL KURTZMAN 45 YEARS OLD A BUSINESS EDITOR AT THE NEW YORK TIMES APPARENTLY WITH THE UNDERSTANDING THAT MR KURTZMAN WOULD BE HIS NO 2 MR KURTZMAN HOWEVER TOLD REPORTERS THAT HE WOULD BE THE TOP GUN AND THAT MR HARRIS HENCEFORTH WOULD BE A CONSULTANT WHICH EVERY EXECUTIVE WORTH HIS CORNER OFFICE KNOWS IS CORPORATESE FOR BEING FIRED BY FRIDAY MORNING WHEN NEWSPAPERS REPORTED THE DISARRAY THE REVIEW STAFF AND PUBLIC RELATIONS PEOPLE STILL DIDN'T KNOW WHAT WAS GOING ON ONLY LATE IN THE DAY DID HARVARD BUSINESS SCHOOL PUBLISHING CORP THE REVIEW'S PARENT COMPANY FINALLY CONCEDE THAT WELL YES MR HARRIS WAS ON HIS WAY OUT MR HARRIS HIMSELF HASN'T RETURNED CALLS SEEKING COMMENT WHY WASN'T HE OR ANYONE ELSE TOLD ANY OF THIS BEFORE IT HAPPENED AS IS RECOMMENDED MANAGEMENT PROCEDURE RUTH MCMULLIN PRESIDENT OF THE PARENT COMPANY IN A MEMO FINALLY GIVEN TO THE STAFF FRIDAY AFTERNOON WROTE GEORGE AND I HAD NOT INTENDED TO TELL YOU ABOUT THE NEW ROLE GEORGE IS ASSUMING UNTIL AFTER OUR OWN DISCUSSIONS HAD CONCLUDED STILL MS MCMULLIN INSISTS IN AN INTERVIEW I'M NOT GOING TO TELL YOU THAT I MISMANAGED ANYTHING SLIPPING INTO MANAGEMENTSPEAK SHE EXPLAINS LIKE ALL COMPANIES EVERYWHERE WE'RE FINDING NEW STRUCTURES AND NEW WAYS TO ORGANIZE TO UTILIZE OUR TALENTS AND TO BE EFFECTIVE TO MEET OUR CUSTOMER NEEDS HUH TURMOIL IS NOTHING NEW FOR THE REVIEW WHICH HAS HAD FOUR TOP EDITORS IN FIVE YEARS BITTER ACADEMIC FEUDS REINCORPORATION TWO RECENT REDESIGNS AND MORE STAFF PURGES THAN GENERAL MOTORS INDEED THE REVIEW RECENTLY HAS NOT BEEN QUITE SURE ABOUT WHAT IT SHOULD BE FOR DECADES IT RELIED MOSTLY ON ARTICLES BY HARVARD BUSINESS SCHOOL PROFESSORS ANALYTICAL CASE STUDIES AND A PORTENTOUS TONE TO BUILD A REPUTATION AS THE BIBLE OF AMERICAN MANAGEMENT BY THE MID1980S THOUGH WITH THE MAGAZINE'S CIRCULATION SLIPPING AND READER ENTHUSIASM LOW HARVARD DECIDED ITS REVIEW NEEDED TOUGHER JOURNALISM FLASHIER GRAPHICS AND A LESS SELFIMPORTANT TONE WE'VE GOT A MAGAZINE THAT'S WRITTEN BY PEOPLE WHO CAN'T WRITE FOR PEOPLE WHO WON'T READ WAS THE DIAGNOSIS OF HARVARD BUSINESS SCHOOL PROFESSOR AND THENEDITOR THEODORE LEVITT IN 1988 MR LEVITT AND HIS SUCCESSOR MS KANTER ANOTHER HARVARD BUSINESS SCHOOL PROFESSOR MADE THE REVIEW SOMEWHAT MORE PROVOCATIVE ITS CIRCULATION IS NOW AT A FIVEYEAR HIGH OF 215000 BUT THE ORTHODOXIES OF THE SCHOOL WHOSE PROFESSORS REGULARLY CONSULT TO BIG BUSINESS PROVED CONSTRICTIVE SO LAST YEAR HARVARD SPLIT OFF THE REVIEW INTO A NEW PUBLISHING SUBSIDIARY THAT WOULD BE SEMIAUTONOMOUS ALL IT NEEDED WAS AN EDITOR ENTER 67YEAROLD MR HARRIS GENIAL FLAMBOYANT AND FULL OF NEWAGE IDEAS TO SUCCEED MS KANTER WHO WAS WIDELY CRITICIZED FOR ALIENATING HER STAFF AND THE FACULTY THE HIRING OF MR HARRIS RAISED SOME EYEBROWS BECAUSE HE DIDN'T MOVE IN SCHOLARLY CIRCLES DAVID VOGEL EDITOR OF THE CALIFORNIA MANAGEMENT REVIEW AND A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAW THE HIRING OF AN OUTSIDER AND NONACADEMIC AS A STEP TOWARD MAKING THE REVIEW A COMMERCIAL VENTURE MR VOGEL CALLS SUCH A STRATEGY A MISTAKE IT GETS THEM INTO A WHOLE OTHER WORLD A MESSY CONTROVERSIAL WORLD TWO MONTHS INTO HIS TENURE MR HARRIS'S PLAN TO PUBLISH WHY IBM FAILED A CRITICAL ARTICLE ABOUT THE FOIBLES OF THE COMPUTER GIANT MET WITH RESISTANCE FROM BUSINESS SCHOOL HONCHOS ACCORDING TO REVIEW EDITORS MR HARRIS PULLED THE STORY SAYING IT NEEDED MORE WORK THOUGH EXCERPTS WERE EVENTUALLY PUBLISHED IN THE WALL STREET JOURNAL AND ELSEWHERE THE INCIDENT HELPED CONVINCE MR HARRIS THAT HE NEEDED A STRONG NO 2 WITH BUSINESS CREDENTIALS REVIEW STAFF MEMBERS SAY AND HE ENTERED DISCUSSIONS WITH MR KURTZMAN A MONTH AGO THEN LAST WEEK THINGS WENT HAYWIRE THE NEWS RELEASE ANNOUNCING MR KURTZMAN'S HIRING SAID HE WOULD REPORT DIRECTLY TO MS MCMULLIN MR HARRIS SPOKE WITH THE BOSTON GLOBE INDICATING MR KURTZMAN WOULD MAKE A FINE DEPUTY INDEED MR HARRIS APPEARED TO BE IN GOOD SPIRITS HE WAS IN THE OFFICE THURSDAY AS THOUGH NOTHING HAPPENED BUSINESS AS USUAL SAID ALEX MCCALLUM THE REVIEW'S OUTSIDE PUBLIC RELATIONS SPECIALIST BUT MR KURTZMAN SAW THINGS DIFFERENTLY I WILL BE IN CHARGE OF ALL DAYTODAY EDITORIAL OPERATIONS HE SAID IN AN INTERVIEW THURSDAY EVENING WHAT ABOUT MR HARRIS I WOULD SAY THAT GEORGE'S RESPONSIBILITIES I DON'T KNOW WHAT HIS RESPONSIBILITIES WILL BE WITH SOME NEWSPAPERS CARRYING WORD OF MR HARRIS'S POSSIBLE OUSTER FRIDAY MORNING THE EDITOR PHONED A FEW FRIENDS TO TELL THEM HE'D BEEN PUSHED OUT SAYS ONE EDITOR WHO RECEIVED A CALL BUT HARVARD BUSINESS SCHOOL OFFICIALS SEEMED OUT OF THE LOOP BY MIDMORNING LORETTO CRANE THE BUSINESS SCHOOL'S DIRECTOR OF COMMUNICATIONS SAID IN RESPONSE TO QUESTIONS ABOUT THE TURN OF EVENTS I THINK GEORGE HARRIS IS STILL IN CHARGE NO TO BE FAIR MS CRANE POINTS OUT THE REVIEW HAS ITS OWN PUBLIC RELATIONS STAFF IT WASN'T UNTIL 503 PM THAT THE FAX MACHINES STARTED MOVING COPIES OF MEMOS PASSED OUT TO STAFF MEMBERS THAT DAY TWO OF THEM LETTERS FROM MS MCMULLIN AND WILLIAM SAHLMAN A BUSINESS SCHOOL PROFESSOR WHO OVERSEES THE PUBLISHING UNIT EXPLAINED BASICALLY THAT MR HARRIS WAS OUT AND MR KURTZMAN WAS IN A THIRD RATHER CRYPTIC STATEMENT FROM MR HARRIS THANKED THE HARVARD FACULTY BUT MADE NO REFERENCE TO HIS OWN DEPARTURE WHAT THE REVIEW SHOULD HAVE DONE OF COURSE IS WORK OUT SOME AGREEMENT WITH MR HARRIS FIRST ANNOUNCE HE'S LEAVING LET SOME TIME PASS AND THEN ANNOUNCE HIS SUCCESSOR SAYS EDWARD E LAWLER HEAD OF CENTER FOR EFFECTIVE ORGANIZATIONS AT THE UNIVERSITY OF SOUTHERN CALIFORNIA AND A FRIEND OF MR HARRIS CERTAINLY WHAT THEY'VE DONE NOW EMBARRASSES BOTH HIM AND THE INSTITUTION AND WHAT MANAGEMNT LESSONS MIGHT BE LEARNED FROM THIS EPISODE SAYS MS MCMULLIN SOMEDAY I'LL WRITE THAT UP FOR THE HARVARD BUSINESS REVIEW AND YOU CAN READ IT THERE 9301110066 930111 THE OUTLOOK NORTH AMERICAN PACT MAY GO BEYOND TRADE BY TIM CARRINGTON WASHINGTON BILL CLINTON AND CARLOS SALINAS DE GORTARI DIDN'T EXACTLY SAY SO AFTER THEIR GETACQUAINTED POWWOW FRIDAY BUT THE TWO LEADERS COULD WIND UP AS COARCHITECTS OF A NEW ECONOMIC COMMUNITY THIS HEMISPHERE'S POLITICIANS APPROACH ECONOMIC CONVERGENCE WITH FAR LESS FANFARE THAN THOSE IN EUROPE BUT THE GOAL OF BUILDING AN ECONOMIC BLOC IN THE AMERICAS IS COMPARABLE TO THE MISSION THE EUROPEAN COMMUNITY HAS BEEN PURSUING IN FITS AND STARTS FOR FOUR DECADES AND THE IDEA THAT IS TAKING SHAPE GOES FAR BEYOND HAULING DOWN TRADE BARRIERS AS CALLED FOR IN THE NORTH AMERICAN FREE TRADE AGREEMENT THAT HAS BEEN SIGNED BUT NOT YET RATIFIED BY THE US MEXICO AND CANADA THE ACCORD SHOULD BE REGARDED AS A FIRST STEP IN A LONG PROCESS SAYS GARY HUFBAUER OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS THAT PROCESS WILL GO ON FOR 30 YEARS OR MORE LIKE IN THE EUROPEAN COMMUNITY THE BIG DIFFERENCE IS THAT THE EUROPEANS FIRST SET OUT A GRAND VISION OF ECONOMIC INTEGRATION THEN GROUND OUT HUNDREDS OF INTRICATE DIRECTIVES NEEDED TO BRING IT ABOUT ON THIS SIDE OF THE ATLANTIC THE NEGOTIATORS STARTED WITH 2000ODD PAGES OF NUTSANDBOLTS TRADE VERBIAGE AND NOW ARE BEING DRAWN INTO DESIGNING A LARGER FRAMEWORK FOR ECONOMIC CONVERGENCE EVENTUALLY MR HUFBAUER PREDICTS THE NORTH AMERICANS WILL EMBRACE THE FOUR FREEDOMS THAT ARE THE BASIC GOALS OF THE EUROPEAN SINGLE MARKET FREE MOVEMENT OF GOODS SERVICES PEOPLE AND CAPITAL MR CLINTON'S RESERVATIONS ABOUT THE TRADE DEAL ESPECIALLY HIS WORRIES ABOUT ENVIRONMENTAL DEGRADATION IN MEXICODOVETAIL WITH MR SALINAS'S INTEREST IN GETTING US HELP WITH SOME OF THE EXPENSIVE CLEANUP OPERATIONS HE HAS PROMISED TO MOUNT IN THE SQUALID MAQUILADORA AREAS AGREEMENTS SUPPLEMENTING THE TRADE ACCORD WILL TAKE TIME TO THRASH OUT BUT MESSRS CLINTON AND SALINAS SEEM TO CONCEDE THE SAME POINT A FREETRADE PACT BETWEEN LARGE COUNTRIES AT RADICALLY DIFFERING STAGES OF DEVELOPMENT WON'T WORK WITHOUT ADDITIONAL MEASURES DESIGNED TO HASTEN CONVERGENCE BUT IN MOVING BEYOND A MERE TRADE DEAL THE US AND MEXICO ARE EMBARKING ON A DAUNTING PROJECT DO WE KNOW WHAT WE'RE GETTING INTO ASKS CLYDE PRESTOWITZ PRESIDENT OF THE ECONOMIC STRATEGY INSTITUTE ONE STEP LEADS TO ANOTHER WHEN YOU START GOING TOWARD DEEP INTEGRATION OF ECONOMIES YOU GET INTO LABOR STANDARDS ENVIRONMENTAL STANDARDS OTHERWISE ONE PARTY OR ANOTHER IS AGGRIEVED THE EUROPEANS RECOGNIZED THIS AT THE OUTSET WHEN THEY DECIDED TO ELIMINATE TRADE BARRIERS THEY ALSO MOVED TO SET COMMON RULES GOVERNING THE ENVIRONMENT THE WORKPLACE AND MANY OTHER MATTERS SUCH AS STATE SUBSIDIES TO ENTERPRISES NO SUCH HARMONIZATION YET EXISTS IN NORTH AMERICA THUS IF THE US ENFORCES ENVIRONMENTAL RULES STRICTLY AND MEXICO BARELY AT ALL THE US ENDS UP CARRYING AN UNFAIR BURDEN AS WELL AS CONTENDING WITH ENVIRONMENTAL HAZARDS THAT WOULD TRAVEL NORTH FOR THE NORTH AMERICAN PARTNERS THE ENVIRONMENT PROVIDES A STARTING POINT FOR ESTABLISHING BROADER ECONOMIC AND REGULATORY CONVERGENCE MEXICO SHOULD BE PRESSED TO BRING ITS ENVIRONMENTAL ENFORCEMENT GRADUALLY INTO LINE WITH ITS TRADING PARTNERS THE US AND CANADA SHOULD OFFER TECHNICAL ADVICE AND LIMITED FINANCIAL ASSISTANCE THE RESULT COULD BE A REGIONAL ENVIRONMENTAL FRAMEWORK THAT COULD PROVIDE A MODEL OF COLLABORATIVE DECISIONS ON A RANGE OF ECONOMIC ISSUES THE ENVIRONMENT COULD BE FOR NORTH AMERICA WHAT THE STEEL AND COAL COMMUNITIES WERE FOR THE EUROPEAN COMMUNITY A FOCUS FOR COOPERATION SAYS GABRIEL SZEKELY A BUSINESS CONSULTANT SOME US CRITICS WOULD CARRY THE HARMONY IDEA MUCH FURTHER FOR EXAMPLE A GROUP OF CONSUMER AND LABOR ACTIVISTS FIGHTING THE ACCORD ARGUE THAT TRADE SHOULDN'T BE FREED UP UNTIL WAGE LEVELS IN MEXICO NOW ABOUT ONETENTH OF THOSE NORTH OF THE BORDER HAVE REACHED US LEVELS BUT THE AIM OF THIS ARGUMENT ISN'T TO BUILD A FRAMEWORK FOR ECONOMIC CONVERGENCE BUT TO THROTTLE THE PACT IN ITS CRADLE THESE CRITICS GENERALLY OPPOSE FREETRADE ACCORDS AND PARTICULARLY FEAR OPEN COMMERCE WITH MEXICO WAGE EQUALITY ISN'T A REQUIREMENT FOR A REGIONAL ECONOMIC ARRANGEMENT INDEED WAGE LEVELS AMONG THE DEEPLY INTEGRATED EUROPEAN ECONOMIES DIFFER WIDELY GIVING CHEAPER PORTUGAL A MEANS OF ATTRACTING INVESTMENT FROM COSTLIER GERMANY ONE ENGINE FOR ECONOMIC CONVERGENCE WITHIN THE EC HAS BEEN A SYSTEM OF HEFTY TRANSFERS FROM THE WEALTHIER COUNTRIES TO THE POORER ONES EC TRANSFERS TO GREECE FOR EXAMPLE APPROACH 6 OF THAT COUNTRY'S GROSS DOMESTIC PRODUCT ALTOGETHER THE EC PLANS TO INCREASE SPENDING ON POORER REGIONS TO ABOUT 30 BILLION ECUS 358 BILLION IN 1999 FROM 186 BILLION ECUS TODAY TRANSFERS COMPARABLE TO THOSE IN EUROPE ARE UNTHINKABLE PARTICULARLY WHEN THE US DEFICIT IS ENORMOUS THE POLITICAL WILL ISN'T THERE A MEXICAN DIPLOMAT SAYS MOREOVER THE GAP BETWEEN THE US AND MEXICO IS GREATER THAN THE GAP BETWEEN THE RICHER AND POORER REGIONS OF THE EC HOWEVER THAT NEEDN'T BLOCK THE CURRENT ECONOMIC CONVERGENCE THAT THE TRADE PACT WOULD GREATLY ACCELERATE INDEED WITHOUT THE ECSTYLE TRANSFERS LATIN AMERICA ATTRACTED A 401 BILLION INFLOW OF PRIVATE CAPITAL IN 1991 ACCORDING TO SALOMON BROTHERS UP FROM 5 BILLION IN 1989 AND MR HUFBAUER FIGURES THAT WHEN POORER REGIONS ARE LINKED WITH RICHER ONES ECONOMICALLY THEY GROW AT AN ANNUAL RATE 25 PERCENTAGE POINTS HIGHER THAN THE RICH PARTNERS DO 9301110065 930111 BUSINESS BRIEF INTERNATIONAL FAMILY ENTERTAINMENT OFFER FOR PREFERENCE SHARES IS SWEETENED IN BID FOR TVS INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT AGAIN SWEETENED ITS OFFER TO BUY BRITAIN'S TVS ENTERTAINMENT PLC THE REVISED BID INCREASES THE CASH OFFER TO HOLDERS OF TVS PREFERENCE SHARES TO 60 PENCE 92 CENTS A SHARE FROM 43 PENCE AND EXTENDS IT FOR AT LEAST 14 DAYS INTERNATIONAL FAMILY'S OFFER TO HOLDERS OF TVS ORDINARY SHARES WHICH WILL EXPIRE TOMORROW REMAINS UNCHANGED THE ORIGINAL OFFER VALUED TVS AT ABOUT 685 MILLION THE VIRGINIA BEACH VA OWNER AND OPERATOR OF THE FAMILY CHANNEL CABLE TELEVISION NETWORK SAID THAT AS OF JAN 6 IT HAD RECEIVED 79 OF TVS'S ORDINARY SHARE CAPITAL AND ABOUT 53 OF ITS PREFERENCE SHARE CAPITAL TOTALING ABOUT 75 OF THE COMPANY'S VOTING RIGHTS INTERNATIONAL FAMILY SAID IT WOULD TERMINATE THE OFFER IF IT DOESN'T RECEIVE ACCEPTANCES EQUALING AT LEAST 75 OF THE PREFERENCE SHARE CAPITAL 9301110064 930111 MARKETING BRIEF SENSORMATIC ELECTRONICS CORP LAWSUIT AGAINST CHECKPOINT CHARGES FALSE ADVERTISING SENSORMATIC ELECTRONICS CORP SAID IT SUED CHECKPOINT SYSTEMS INC ALLEGING THAT CHECKPOINT USED FALSE AND MISLEADING ADVERTISING TO DISPARAGE SENSORMATIC SENSORMATIC BASED IN DEERFIELD BEACH FLA AND CHECKPOINT IN THOROFARE NJ BOTH MAKE ELECTRONIC SURVEILLANCE SYSTEMS USED IN STORES TO REDUCE THEFT THE SUIT FILED IN US DISTRICT COURT IN MIAMI CAME IN RESPONSE TO AN AD THAT CHECKPOINT PLACED IN THE JAN 9 ISSUE OF BILLBOARD MAGAZINE IN IT THE COMPANY CLAIMED THAT SENSORMATIC'S TAGS USED BY RECORD STORES TO PREVENT SHOPLIFTING CAN DISTORT TAPE RECORDINGS WHEN DEACTIVATED CONTRARY TO CHECKPOINT'S INACCURATE CLAIMS OUR PRODUCTS DO NOT ADVERSELY AFFECT THE AUDIO AND VIDEO TAPES SOLD BY RETAILERS SAID RONALD G ASSAF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SENSORMATIC THE SUIT SEEKS 35 MILLION AE WOLF CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF CHECKPOINT SAID FRIDAY THAT HE HADN'T SEEN THE LAWSUIT BUT HE ADDED WE STAND BY THE ADVERTISEMENT 9301110063 930111 FOREIGN EXCHANGE GERMANY'S RATE CUT TAKES PRESSURE OFF FRENCH FRANC AND THE REST OF THE EMS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THERE BUT FOR THE GRACE OF THE BUNDESBANK GOES THE FRENCH FRANC AND FOR THAT MATTER THE REST OF EUROPE'S TORMENTED MONETARY SYSTEM THAT IS THE MESSAGE FOREIGN EXCHANGE EXPERTS ARE HEARING AFTER THE HARRIED FIRST TRADING WEEK OF 1993 THE GERMAN CENTRAL BANK SEEMS TO HAVE TAKEN THE PRESSURE OFF THE FRANC AT LEAST IN THE NEAR TERM WITH A RELATIVELY MODEST GESTURE CUTTING ONE OF ITS INTEREST RATES BY 015 OF A PERCENTAGE POINT AND REAFFIRMING ITS COMMITMENT TO KEEPING THE FRANC'S LEVEL STEADY AGAINST THE MARK IT LOOKS LIKE THE FRANC WILL SURVIVE SAYS DAVID COCKER AN ECONOMIST AT CHEMICAL BANK IN LONDON AT THE END OF THE DAY FOREIGN EXCHANGE MARKETS ARE VERY PRAGMATIC AND THEY ARE STARTING TO APPRECIATE THE EXTRAORDINARY EFFORTS OF GOVERNMENTS AND CENTRAL BANKS TO HOLD THESE PARITIES SOME EXPERTS ARE NOW PREDICTING THE IMMINENT END OF THE CURRENCY CRISIS THAT HAS AFFLICTED EUROPE SINCE SEPTEMBER THAT DOESN'T MEAN THAT THERE WON'T BE RESIDUAL DAMAGE ON THE ROAD TO LASTING EMS STABILITY EXPECTATIONS ARE WIDESPREAD THAT THE IRISH PUNT WILL BE DEVALUED BEFORE THE CRISIS IS TRULY OVER THE DANISH KRONE ALSO REMAINS VULNERABLE IN LATE NEW YORK TRADING FRIDAY THE MARK WAS QUOTED AT 34024 FRANCS UP SLIGHTLY FROM 33996 FRANCS THURSDAY THE DOLLAR TRADED AT 16465 MARKS AND 12535 YEN COMPARED WITH 16370 MARKS AND 12515 YEN LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16347 MARKS AND AT 12534 YEN ANALYSTS BELIEVE THE BUNDESBANK IS BECOMING INCREASINGLY CONVINCED ABOUT THE IMPORTANCE OF THE EMS'S LONGTERM HEALTH AND DETERMINED THAT THE FRANC NOT BE DEVALUED NOT THE LEAST BECAUSE SUCH A MOVE WOULD HURT GERMANY'S COMPETITIVENESS THE GERMAN CENTRAL BANK IS FINDING IT HARD TO IGNORE A SLEW OF DATA IN RECENT WEEKS THAT POINT TO A SERIOUS SLOWDOWN OF THE ECONOMY MANY MARKET ECONOMISTS ARE PREDICTING A CUT IN GERMANY'S DISCOUNT RATE OF AT LEAST HALF A PERCENTAGE POINT WITHIN THE NEXT SIX WEEKS AS FAR AS INTEREST RATES GO IT'S ALL DOWN HILL FROM HERE SAYS BRONWYN CURTIS HEAD OF RESEARCH AT DEUTSCHE BANK CAPITAL MARKETS LTD EVEN WITHOUT SHARP GERMAN INTEREST RATE CUTS ODDS ON THE BATTLE OVER THE FRANC ARE SHIFTING FROM THE MARKET SPECULATORS TOWARD THE FRENCH AUTHORITIES WHO BACKED UP THEIR WORDS LAST WEEK WITH A TWOPERCENTAGE POINT INCREASE IN OFFICIAL RATES THE RISE LED MANY TO PREDICT THAT THE FRENCH GOVERNMENT WOULD BE SUBJECTED TO HARSH CRITICISM ESPECIALLY UNWELCOME AHEAD OF PARLIAMENTARY ELECTION SCHEDULED FOR LATE MARCH BUT MANY INSIDE FRANCE THINK THE MOSTLY ANGLOSAXON FINANCIAL COMMENTATORS HAVE GOT IT WRONG WHEN PEOPLE IN LONDON FOR EXAMPLE SEE THE FRENCH GOVERNMENT RAISING RATES THEY THINK THERE WILL BE AN UPROAR BUT THAT DOESN'T CLICK WITH THE FRENCH MENTALITY AS FAR AS I UNDERSTAND IT SAYS PHILIPPE BROSSARD CHIEF ECONOMIST AT CREDIT LYONNAIS IN PARIS THE MAN OF THE STREET HERE IS NOT REALLY AWARE OF THIS KIND OF THING AND HIS MORTGAGE IS NOT LINKED TO SOME FLOATING RATE AS IT USUALLY IS IN BRITAIN FURTHERMORE MR BROSSARD BELIEVES THAT BECAUSE PRESIDENT FRANCOIS MITTERRAND HAS PLACED SO MUCH IMPORTANCE ON MAINTAINING A STRONG FRANC AND ACHIEVING EUROPEAN MONETARY UNION IT WOULD BE UNTHINKABLE THAT HIS SOCIALIST PARTY WOULD FACE AN ELECTION WITH A CANDIDATE WHO HAS ALLOWED A DEVALUATION PARIBAS CAPITAL MARKETS GROUP'S CHIEF ECONOMIST ROBIN HUBBARD THINKS OBSERVERS DRAW TOO MANY PARALLELS BETWEEN CONDITIONS THAT EVENTUALLY FORCED THE UK POUND OUT OF THE EXCHANGE RATE MECHANISM IN SEPTEMBER AND THE CURRENT CLIMATE FACING THE FRANC THE MAIN DIFFERENCE IS THAT BRITAIN WAS IN THE MIDST OF A PROLONGED AND SEVERE RECESSION WHILE THE FRENCH ECONOMY CONTINUES TO GROW ALBEIT AT A SLOWER PACE THAN IN 1992 FRANCE'S LOW INFLATION AND HEALTHY PUBLIC FINANCES HAVE SOME ANALYSTS GOING AS FAR AS PREDICTING THAT THE FRANC WILL BE ONE OF THE STRONGEST CURRENCIES IN THE ERM BY THE SECOND HALF OF THE YEAR ONCE THE SEVERITY OF GERMANY'S ECONOMIC WOES BECOME PAINFULLY OBVIOUS AND AFTER BUNDESBANK RATES HAVE BEEN LOWERED THREE TO FOUR PERCENTAGE POINTS A SIMILARLY ROSY SCENARIO IS UNLIKELY FOR THE IRISH PUNT WHICH FINISHED THE WEEK TRADING AT 26240 MARKS DANGEROUSLY CLOSE TO IT MINIMUM PERMITTED LEVEL IN THE ERM OF 26190 MARKS AUTHORITIES IN DUBLIN CONTINUE TO FIGHT THE GOOD FIGHT LAST WEEK RAISING OVERNIGHT INTEREST RATES FIRST FROM 14 TO 50 AND THEN TO 100 FINANCE MINISTER BERTIE AHERN ALSO HAS BEEN STATING THAT THERE WILL BE NO DEVALUATION OF THE PUNT I AM NOT LOOKING TO A FURTHER REALIGNMENT WITHIN THE EMS IN THE MONTHS AHEAD HE TOLD APDOW JONES NEWS SERVICE FRIDAY SEVERAL PRIVATE SECTOR ECONOMISTS IN IRELAND BACK UP MR AHERN'S ASSERTIONS AND REMAIN PUNT BELIEVERS BUT THE OVERWHELMING MAJORITY OF FOREIGN INSTITUTIONS EXPECT A DEVALUATION AND THEY ARE THE ONES WITH THE CLOUT TO BRING THE PUNT TO ITS KNEES THE IRISH PUNT'S DAYS ARE NUMBERED SAYS RICHARD DAVIDSON EUROPEAN STRATEGIST AT MORGAN STANLEY INTERNATIONAL THE IRISH JUST CAN'T SUSTAIN THESE INTEREST RATE LEVELS ALSO UNCERTAIN IS THE FATE OF THE DANISH KRONE WHICH SPENT A QUIET FIRST WEEK OF THE YEAR SEEMINGLY OUT OF THE SPECULATORS' SIGHTS HOWEVER ANALYSTS SAY A CHANGE IN THE PUNT'S PARITIES WOULD LEAVE THE KRONE THE WEAKEST MEMBER OF THE ERM WHILE DENMARK'S ECONOMIC FUNDAMENTALS LOOK ABOUT AS HEALTHY AS THOSE IN FRANCE RISING POLITICAL INSTABILITY COULD RANKLE FOREIGN INVESTORS 9301110062 930111 INDUSTRY FOCUS HOUSING INDUSTRY RECOVERY TAKES HOLD IN MOST AREAS BUILDERS BROKERS REPORT HEAVY BUYING AS CONFIDENCE SURGES RATES SLIDE BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE LONGBELEAGUERED HOUSING INDUSTRY IS POISED FOR ITS BEST PERFORMANCE IN FIVE YEARS AMID SURGING CONSUMER CONFIDENCE AND A RENEWED DECLINE IN MORTGAGE RATES SINGLEFAMILY CONSTRUCTION DECLINED 29 FROM 1986 TO 1991 AND RECOVERED ONLY MEAGERLY IN THE PAST YEAR BUT BUILDERS AND REAL ESTATE BROKERS REPORT SURPRISINGLY HIGH LEVELS OF HOMEBUYING ACTIVITY IN MANY PARTS OF THE COUNTRY EXCLUDING SOUTHERN CALIFORNIA AND THE HARDESTHIT PARTS OF THE NORTHEAST AND THEY PREDICT A STRONG SPRING BUYING SEASON NO ONE IS READY TO BREAK OUT THE CHAMPAGNE JUST YET THOUGH THE HOUSING MARKET LOOKED LIKE IT WAS RECOVERING EARLY LAST YEAR BUT FIZZLED JOB GROWTH AND PERSONALINCOME GROWTH TWO ESSENTIAL INGREDIENTS FOR A ROBUST MARKET REMAIN ANEMIC A CREDIT CRUNCH ALSO LINGERS IN THE INDUSTRY WITH BANKS' RELUCTANCE TO LEND CONSTRAINING SMALLER BUILDERS' ABILITY TO CONSTRUCT NEW HOMES EUPHORIA IS NOT EXACTLY THE RIGHT ATTITUDE RIGHT NOW SAID DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS BUT WE FEEL BETTER ABOUT THE CONDITION OF THE MARKET THAN A YEAR AGO AND ABOUT THE CHANCE FOR A MORE ORDERLY EXPANSION FOR THE YEAR MR SEIDERS IS CALCULATING THAT SINGLEFAMILY HOUSING STARTS WILL RISE 9 TO 112 MILLION THEIR HIGHEST LEVEL SINCE 1987 FOLLOWING AN ESTIMATED 22 INCREASE IN 1991 THOUGH POSITIVE THE INCREASES STILL PALE IN COMPARISON TO PREVIOUS RECOVERY YEARS WHEN SINGLEFAMILY STARTS BOLTED AS MUCH AS 60 THE NATIONAL ASSOCIATION OF REALTORS PROJECTS A 65 INCREASE IN EXISTINGHOME SALES TO 37 MILLION FOR THE YEAR ALTHOUGH ALSO SMALL BY HISTORICAL POSTRECOVERY STANDARDS THE RISE WOULD PUT SALES CLOSE TO THE BOOM LEVEL OF ABOUT FOUR MILLION HOMES A YEAR BOLSTERING PROSPECTS FOR THE YEAR ARE NEW REPORTS SHOWING STRENGTHENED CONSUMER CONFIDENCE AND CONTINUED LOW MORTGAGE RATES THE UNIVERSITY OF MICHIGAN'S INDEX OF CONSUMER SENTIMENT FOR DECEMBER WHICH IS NOT TO BE RELEASED UNTIL NEXT MONTH SOARED TO A NEARLY THREEYEAR HIGH OF 91 FOLLOWING GAINS TO 853 IN NOVEMBER AND 733 IN OCTOBER ACCORDING TO HOUSING OFFICIALS WHO WERE APPRISED OF THE SURVEY'S RESULTS THE CONFERENCE BOARD A NEW YORK BUSINESS RESEARCH GROUP RECENTLY ANNOUNCED THAT ITS INDEX ON CONSUMER CONFIDENCE CLIMBED 127 POINTS TO 783 IN DECEMBER THE HIGHEST LEVEL IN MORE THAN 1 1/2 YEARS ANALYSTS SAID CONFIDENCE HAS RISEN ON REPORTS OF A STRENGTHENING ECONOMY AND BECAUSE OF WIDESPREAD HOPE FOR RENEWED GROWTH UNDER THE NEW ADMINISTRATION THE AVERAGE 30YEAR FIXEDRATE MORTGAGE MEANWHILE FELL TO 816 THIS WEEK FROM 828 LAST WEEK ACCORDING TO A PRELIMINARY SURVEY BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM THE FIXED RATE HAD DROPPED TO A 20YEAR LOW OF 799 IN SEPTEMBER BEFORE JUMPING BACK TO A HIGH OF 852 A SHARP DROP IN LONGTERM TREASURY BOND PRICES AT WEEK'S END AMID AN UNEXPECTEDLY LARGE DROP IN INITIAL JOBLESS CLAIMS PUSHED BOND YIELDS UP AND EXERTED UPWARD PRESSURE ON MORTGAGE RATES THAT TEND TO MOVE IN TANDEM WITH THE LONG BONDS RICHARD CURTIN DIRECTOR OF THE UNIVERSITY OF MICHIGAN SURVEY CAUTIONED THAT CONSUMER CONFIDENCE CAN WANE QUICKLY AS IT DID FOLLOWING A BRIEF RUNUP AFTER THE PERSIAN GULF WAR MORTGAGE RATES WOULD ALSO SHOOT UPWARD AND CHOKE OFF HOUSING DEMAND ANALYSTS SAID IN THE UNLIKELY EVENT THAT THE ECONOMY REALLY STARTS TO HEAT UP SOON OR THE CLINTON ADMINISTRATION LAUNCHES A COSTLY STIMULUS PROGRAM BUILDERS AND REAL ESTATE BROKERS NONETHELESS ARE SAVORING NEWFOUND SALES MOMENTUM THAT THEY SAY HAS BEEN BUILDING FOR SEVERAL WEEKS ON THE RESALE SIDE COLDWELL BANKER RESIDENTIAL GROUP SAID ITS NORMALLY SLOW DECEMBER SALES ROSE AN UNEXPECTED 20 TO 25 NATIONWIDE FROM A YEAR EARLIER CARRYING OVER FROM A STRONG NOVEMBER PEOPLE ARE FEELING A LITTLE BETTER FOR THE FUTURE SAID CHANDLER BARTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COLDWELL BANKER THE MISSION VIEJO CALIF BROKERAGE UNIT OF SEARS ROEBUCK & CO WITHOUT CITING ANY SPECIFIC FIGURES OFFICIALS AT RE/MAX INTERNATIONAL INC ANOTHER BIG BROKER BASED IN ENGLEWOOD COLO SAID ITS DECEMBER SALES NATIONALLY WERE VERY STRONG AND THAT THE SPRING SEASON LOOKS GOOD PEOPLE FEEL LIKE THEY HAVE A NEW START NOW SAID ROBERT FISHER RE/MAX'S PRESIDENT I'M VERY ENTHUSIASTIC ENTHUSIASM IS ALSO RUNNING HIGH AMONG BUILDERS A DECEMBER SURVEY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS SHOWED A SHARP UPSWING IN BUILDERS' EXPECTATIONS FOR THE NEW YEAR TOLL BROTHERS INC A HUNTINGDON VALLEY PA BUILDER OF LUXURY HOMES IN THE BOSTONWASHINGTON CORRIDOR SAID ITS CONTRACT AGREEMENTS TO BUY NEW HOMES ROSE 73 DURING NOVEMBER AND DECEMBER TO 190 FROM 110 A YEAR EARLIER OVER THE TYPICALLY SLOW NEW YEAR'S DAY WEEKEND THE COMPANY SAID IT TOOK DEPOSITS ON 30 HOMES WHEN IT NORMALLY WOULD HAVE RECEIVED AS FEW AS SIX I THINK THEY THE PUBLIC ARE VERY HOPEFUL THE CLINTON ADMINISTRATION WILL PROVIDE ANSWERS AND MOMENTUM TO AN ECONOMY THAT WAS STALLED SAID ROBERT I TOLL CHAIRMAN AND CHIEF EXECUTIVE OFFICER WHO HAS SEEN A 33 JUMP IN CUSTOMER TRAFFIC RECENTLY THEREFORE THEY ARE MORE WILLING TO GO OUT AND SPEND CENTEX CORP A BIG DALLASBASED BUILDER SAID CUSTOMER TRAFFIC WAS UP 10 TO 15 DURING ITS FISCAL THIRD QUARTER ENDED DEC 31 AND THAT SALES ROSE 49 IN THE COMPANY'S 20STATE MARKET AREA TO 2494 HOMES FROM 1678 AT THE SAME TIME A YEAR EARLIER THOUGH A FULLSCALE HOUSING RECOVERY SEEMS UNDER WAY BILL GILLILAN PRESIDENT AND CHIEF OPERATING OFFICER SAID IT WILL BE UNEVENLY DISTRIBUTED IN THE COUNTRY CALIFORNIA AND THE WEST COAST REMAIN WEAK ALONG WITH PARTS OF THE NORTHEAST WHILE PLACES SUCH AS TEXAS NEW MEXICO AND COLORADO THAT EMERGED FROM RECESSION EARLIER ARE STRENGTHENING HE SAID LENNAR CORP A MIAMIBASED BUILDER IN FLORIDA TEXAS AND ARIZONA SAID ITS DECEMBER HOME ORDER RATE WAS UP MORE THAN 50 IN DECEMBER FROM THE PREVIOUS YEAR EXCEEDING THE 45 YEARONYEAR INCREASE IN ITS FISCAL FOURTH QUARTER ENDED NOV 30 THE COMPANY ADDED THAT SALES WERE CONTINUING BRISKLY THIS MONTH WHEN YOU HAVE LOW INTEREST RATES COMBINED WITH A CONSUMER THINKING MORE POSITIVELY IT TRANSLATES TO MORE HOUSING SALES SAID LEONARD MILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER EVEN IN SOUTHERN CALIFORNIA THE COUNTRY'S BIGGEST BUT WEAKEST HOUSING MARKET SALES HAVE PICKED UP IN THE ENTRYLEVEL MARKET FOR FIRSTTIME BUYERS WHO ARE FINALLY ABLE TO BUY WITH THE LOWER MORTGAGE RATES AND REDUCED HOME PRICES THE HARDERHIT EXECUTIVE HOMES ARE STILL LANGUISHING HOWEVER AMID CONTINUING WHITECOLLAR LAYOFFS KAUFMAN & BROAD HOME CORP A LOS ANGELESBASED BUILDER OF MOSTLY ENTRYLEVEL HOMES SAID ITS BACKLOG OF HOME ORDERS AS OF DEC 31 ROSE 64 TO 908 FROM 553 IN 1991 9301110061 930111 BUSINESS BRIEF ALLIED CAPITAL ADVISERS INC PRIVATE OFFERING OF STOCK IN NEW FIRM IS COMPLETED ALLIED CAPITAL ADVISERS INC WASHINGTON SAID IT CLOSED A 49 MILLION PRIVATE OFFERING OF COMMON STOCK IN A NEW ENTITY BUSINESS MORTGAGE INVESTORS INC THE NEW FUND PLANS TO INCREASE ITS SIZE TO 100 MILLION IN A SECOND OFFERING EXPECTED TO BE COMPLETED BY MARCH 31 INCLUDING THE NEW FUND ALLIED CAPITAL ADVISERS MANAGES ABOUT 477 MILLION INCLUDING TWO SMALL BUSINESS INVESTMENT COMPANIES A PUBLIC REIT AND TWO PRIVATEVENTURE PARTNERSHIPS 9301110060 930104 MARKETING & MEDIA ADVERTISING NEW ALLNEWS STATION STARTING IN NEW YORK HAS MIXED PROSPECTS BY KEVIN GOLDMAN NEW YORK THE NATION'S MEDIA CAPITAL IS ABOUT TO GIVE NEWS JUNKIES ANOTHER FIX WITH A THIRD ALLNEWS RADIO STATION BUT THE NEW ENTRY WHICH WILL PUT MORE EMPHASIS ON BUSINESS AND ECONOMIC NEWS THAN THE EXISTING STATIONS MAY FACE STIFF COMPETITION FOR ADVERTISING DOLLARS THIS MORNING AT PRECISELY 5 AM THE CITY'S THIRD ALLNEWS STATION IS TO GO ON THE AIR WHEN IT DOES WBBRAM OWNED BY BLOOMBERG LIMITED PARTNERSHIP WILL JOIN TWO WELLESTABLISHED ALLNEWS RIVALS WINSAM THE CITY'S 28YEAROLD STATION THAT LEADS IN RATINGS AND IS THE NO 1 STATION IN ADVERTISING REVENUE AND WCBSAM THE 25YEAROLD PERENNIAL ALSORAN WHICH RANKED NO 5 IN ADVERTISING REVENUE LAST YEAR WHEN FORMER WALL STREET TRADERTURNEDENTREPRENEUR MICHAEL BLOOMBERG PURCHASED WNEWAM LAST AUGUST FOR 135 MILLION MANY BROADCASTERS ASSUMED THE NEW STATION WOULD DISPENSE BUSINESS NEWS AROUND THE CLOCK AFTER ALL MR BLOOMBERG'S COMPANY PROVIDES FINANCIAL AND BUSINESS INFORMATION TO CLIENTS THROUGH A NETWORK OF OVER 20000 COMPUTER TERMINALS IT ALSO DISPATCHES BUSINESS NEWS STORIES TO 25 NEWSPAPERS COMPETING WITH REUTERS AND DOW JONES & CO'S FINANCIAL NEWS WIRE SERVICES AS IT TURNS OUT THE BROADCASTERS WERE WRONG BLOOMBERG EXECUTIVES SAY WBBR WILL GO DIRECTLY AFTER THE GENERAL ALLNEWS AUDIENCE ITS SLOGAN IS BLOOMBERG NEWS RADIO NEWS THAT MATTERS TO YOU THE CALL LETTERS WHICH MANY ASSUME STAND FOR BLOOMBERG BUSINESS RADIO INSTEAD STAND FOR NOTHING IN PARTICULAR INSISTS FRAN SHARP A FORMER GENERAL MANAGER OF A TALK RADIO STATION IN HARTFORD CONN AND A COMPANY EXECUTIVE PERHAPS IT IS JUST AS WELL WBBR WILL SHUN AN ALLBUSINESS FORMAT OTHER ATTEMPTS NATIONWIDE HAVE FAILED MISERABLY TO ATTRACT AUDIENCE AND ADVERTISERS ALIKE LAST JANUARY FOR EXAMPLE KBLAAM IN LOS ANGELES ABANDONED ITS ALLBUSINESS FORMAT AFTER LESS THAN A YEAR THE REASON NO RATINGS AND NO ADS ANOTHER WEST COAST STATION KMNYAM MONEY RADIO IN PAMONA CALIF SIGNED OFF LAST YEAR WMEXAM IN BOSTON ABANDONED THE FORMAT AFTER A YEAR AND WQXRAM IN NEW YORK DECIDED AGAINST AN ALLBUSINESS FORMAT LAST YEAR INSTEAD IT CHANGED ITS CALL LETTERS TO WQEWAM AND WENT WITH A FORMAT OF AMERICAN STANDARDS SONGS IN THE FRANK SINATRA STYLE THERE ARE NO HUGE SUCCESS STORIES IN THE ALLBUSINESS FORMAT TO POINT TO SAYS MICHAEL HARRISON THE EDITOR AND PUBLISHER OF THE MONTHLY PUBLICATION TALKERS WHICH SPOTLIGHTS THE GOINGSON IN TALK RADIO HOWEVER SENIOR EXECUTIVES AT BLOOMBERG LIMITED PARTNERSHIP SAY AS MUCH AS 50 OF ITS STATION'S CONTENT WILL BE STRAIGHT BUSINESS REPORTS AND NEWS OF INTEREST TO BUSINESSMEN MR BLOOMBERG REACHED LAST WEEK BY TELEPHONE WHILE VACATIONING IN COLORADO DECLINED TO COMMENT ON SPECIFICS OF THE FORMAT BUT ONE BLOOMBERG EXECUTIVE WHO DECLINED TO BE QUOTED BY NAME SAID THE STATION WILL NEVER FORGET THE SIGN THAT HUNG IN THE CAMPAIGN OFFICE OF CLINTON IT'S THE ECONOMY STUPID' THE ECONOMY IS THE NO 1 NEWS STORY AND WE'LL COVER ALL ASPECTS OF IT AGGRESSIVELY CURRENTLY WINS AND WCBS FEATURE LESS THAN 10 MINUTES OF BUSINESS NEWS PER HOUR AT FIRST ACCORDING TO THE BLOOMBERG EXECUTIVE MR BLOOMBERG TOLD COLLEAGUES THAT HE ENVISIONED A RADIO STATION WITH NO ADVERTISING WHATSOEVER WITH THE STATION FUNCTIONING AS A KIND OF ADJUNCT TO HIS ALREADY SUCCESSFUL NEWSDISTRIBUTION SYSTEM HE ALSO SAID WBBR COULD SURVIVE FOR FIVE YEARS WITH NO COMMERCIALS BUT THE PLAN NOW IS TO AGRESSIVELY SEEK ADVERTISING THE EXECUTIVE SAID ADVERTISING WILL BE GIVEN FREE OF CHARGE FOR THE FIRST MONTH OF OPERATIONS BLOOMBERG DECLINED OFFICIAL COMMENT ON WHICH POTENTIAL SPONSORS WOULD GET THE FREE RIDE BUT THE BLOOMBERG SENIOR EXECUTIVE SAID THAT THE COMPANY WILL OFFER FREE ADS TO THOSE THAT OWN BLOOMBERG NEWS SERVICE TERMINALS MEANING THERE WILL LIKELY BE PLENTY OF COMMERCIALS FOR FINANCIAL INSTITUTIONS AT LEAST FOR THE FIRST MONTH NO ADVERTISERS HAVE SIGNED ON YET ALTHOUGH STATION EXECUTIVES SAY THAT IS BECAUSE THEY HAVE YET TO BEGIN SELLING IN EARNEST JIM DUNCAN THE EDITOR OF DUNCAN'S RADIO GUIDE WHICH TRACKS RADIO AD SPENDING ESTIMATES THAT WINS WILL AGAIN FINISH AS THE NO 1 REVENUEEARNER IN NEW YORK WITH 30 MILLION IN AD REVENUE ABOUT THE SAME AS 1991 BUT THE LEADER IS CLEARLY BRACING FOR COMPETITION WINS RECENTLY TOOK OUT ADS IN CRAIN'S NEW YORK BUSINESS TOUTING ITSELF AS NEW YORK'S 24HOUR BUSINESS STATION THE SECRET FOR SUCCESS IS FOR THE OWNERS TO BE PATIENT AND HAVE DEEP POCKETS SAYS MR DUNCAN BLOOMBERG HAS BOTH ROBERT UNMACHT EDITOR OF THE M STREET JOURNAL WHICH FOLLOWS RADIO FORMATS SAYS WBBR STANDS TO DO QUITE WELL WITH ADVERTISERS THE STATION SHOULD QUICKLY ESTABLISH ITSELF AS THE PLACE TO GO TO REACH THE DEDICATED BUSINESSMAN HE SAYS UNITED PARCEL SERVICE OF AMERICA INC HAS PACKED IT IN WITH ITS SLOGAN WE RUN THE TIGHTEST SHIP IN THE SHIPPING BUSINESS WHICH THE COMPANY HAS BEEN USING SINCE 1985 THE COMPANY UNVEILED A NEW SLOGAN AND NEW TELEVISION CAMPAIGN LAST FRIDAY DURING THE THREE BOWL FOOTBALL GAMES SUGAR ROSE AND COTTON THE NEW SLOGAN IS JUST AS CUMBERSOME AND IN FACT COMPANY EXECUTIVES ACKNOWLEDGED ACTUALLY FOUR SYLLABLES LONGER THAN THE OLD ONE UPS THE PACKAGE DELIVERY COMPANY MORE COMPANIES COUNT ON UPS WHICH SPENT UPWARD OF 50 MILLION LAST YEAR ON ADVERTISING IS EXPECTED TO SPEND AS MUCH OR MORE IN 1993 A NEW PRINT CAMPAIGN IS EXPECTED TO BREAK JAN 7 UPS SAYS IT RELUCTANTLY PUT THE OLD CAMPAIGN ON HIATUS BUT IT WANTED TO STRESS NEW SERVICES OFFERED IN THE CUTTHROAT OVERNIGHT PACKAGE DELIVERY BUSINESS THE SERIES OF SIX 30SECOND SPOTS PRODUCED BY AMMIRATI & PURIS WHICH WAS RESPONSIBLE FOR THE OLD ADS AS WELL SHOW RAPIDLY EDITED INTERVIEWS WITH BUSINESS EXECUTIVES SECRETARIES MAILROOM WORKERS AND OTHER BUSINESSMEN AND BUSINESSWOMEN WHO EACH TOUT AMONG OTHER THINGS UPS'S ONTIME SERVICE THE INTERVIEWS WERE CONDUCTED IN FOUR CITIES INCLUDING BOSTON AND LOS ANGELES AND THE PARTICIPANTS DIDN'T KNOW THEY WOULD APPEAR IN A COMMERCIAL UNTIL AFTER THE INTERVIEW WAS CONDUCTED WE CHANGED THE ADS BECAUSE WE'RE MORE CUSTOMERFOCUSED AND WE HAVE ADDED TECHNOLOGY THAT MAKES IT EASIER FOR US TO TRACK A PACKAGE SAYS PETER FREDO UPS'S VICE PRESIDENT FOR ADVERTISING WE THOUGHT WE SHOULD ADDRESS THIS IN NEW ADS UPS IS THE LARGEST PACKAGE DISTRIBUTION COMPANY IN THE US WITH 29 BILLION PACKAGES AND DOCUMENTS SHIPPED IN 1992 FEDERAL EXPRESS CORP A PRIME COMPETITOR DECLINED THROUGH A SPOKESMAN TO RELEASE ANY OF ITS VOLUME FIGURES AUDITS & SURVEYS INC AN INTERNATIONAL MARKETING RESEARCH COMPANY BASED IN NEW YORK IS CREATING A NEW DIVISION THAT COULD SIGNAL A MOVE INTO THE BUSINESS OF SYNDICATED RESEARCH ACROSS ALL FORMS OF MEDIA TO HEAD THE NEW DIVISION AUDITS & SURVEYS HAS HIRED AWAY PAUL J DONATO FROM SIMMONS MARKET RESEARCH BUREAU WHERE HE WAS PRESIDENT OF THE SYNDICATED SERVICES DIVISION BEST KNOWN FOR IT MAGAZINE AUDIENCE RESEARCH MR DONATO WILL BE A SENIOR VICE PRESIDENT AND DIRECTOR OF THE MEDIA RESEARCH DIVISION THE NEW GROUP IS EXPECTED TO OFFER SYNDICATED RESEARCH ON THE AUDIENCES AND OVERALL EFFECTIVENESS OF TRADITIONAL MEDIA SUCH AS MAGAZINES AND TELEVISION AS WELL AS THAT OF NEW MEDIA FORMS SUCH AS TELEVISIONS IN SUPERMARKETS OR BRAND SPONSORSHIP OF CONCERTS AND SPORTING EVENTS AUDITS & SURVEYS WILL CONTINUE TO OFFER CUSTOMIZED RESEARCH TO INDIVIDUAL CLIENTS LIKE IT HAS DONE FOR WHITTLE COMMUNICATIONS LP CBS INC NEW YORK TIMES CO AND OTHERS JOEL BAUMWOLL PRESIDENT OF AUDITS & SURVEYS SAYS HE'S NOT INTERESTED IN KNOCKING OFF ESTABLISHED SYNDICATED MEDIA RESEARCH COMPANIES SUCH AS SIMMONS BUT HE ADDS MR DONATO'S NEW DIVISION WILL PRODUCE RESEARCH THAT IS MORE RELEVANT AND MORE TARGETED TO ADVERTISERS' NEEDS TODAY THE LOS ANGELES RADIO STATION KMNY MONEY RADIO WHICH SIGNED ON IN MARCH 1987 CONTINUES TO OPERATE ON A FULLTIME BASIS AT 1600 ON THE AM DIAL IN LAST MONDAY'S ADVERTISING COLUMN IT WAS INCORRECTLY REPORTED THAT THE STATION WENT OFF THE AIR LAST YEAR 9301110059 930111 BUSINESS BRIEF LUFKIN INDUSTRIES INC OIL GEAR FIRM PLANS LAYOFFS SETS RESTRUCTURING CHARGE LUFKIN INDUSTRIES INC SUFFERING FROM THE DEPRESSED DOMESTIC OIL DRILLING MARKET SAID IT WILL TAKE A FOURTHQUARTER RESTRUCTURING CHARGE OF 25 MILLION AND LAY OFF ABOUT 160 EMPLOYEES THE LUFKIN TEXAS COMPANY WHICH MAKES OIL FIELD PUMPING UNITS SAID NOT ONLY HAS DOMESTIC OIL FIELD PUMPING BUSINESS DECLINED TO HISTORIC LOW LEVELS BUT CERTAIN FOREIGN SALES HAVE BEEN UNCERTAIN AS WELL LUFKIN HAD PURCHASE ORDERS WORTH 96 MILLION FROM THE RUSSIAN GOVERNMENT WITH THE EXPORTIMPORT BANK COMMITTING TO PAYMENT GUARANTEES THE POLITICAL SITUATION IS SO VOLATILE THAT THE RUSSIAN GOVERNMENT IS JUST NOT MAKING DECISIONS SAID A SPOKESMAN AS PART OF THE RESTRUCTURING LUFKIN SAID IT WILL IDENTIFY ALTERNATIVES THAT WILL ENHANCE SHAREHOLDER VALUE BUT A SPOKESMAN SAID THE COMPANY WAS NOT BEING PLACED ON THE BLOCK IN THE FOURTH QUARTER OF 1991 LUFKIN EARNED 696000 OR 10 CENTS A SHARE ON REVENUE OF 488 MILLION 9301110058 930111 ECONOMY TRACKING THE ECONOMY BY LUCINDA HARPER THE MERRY CHRISTMAS THAT RETAILERS HAVE BEEN TALKING ABOUT WILL SHOW UP IN THE NUMBERS THIS WEEK SAYS BARNETT BANKS CHIEF ECONOMIST JOHN GODFREY HE ESTIMATES THAT RETAIL SALES IN DECEMBER JUMPED 08 COMPARED WITH A 04 RISE IN NOVEMBER DRIVEN MAINLY BY A ROBUST HOLIDAY SELLING SEASON AND A YEAREND PICKUP IN CAR SALES HE ALSO SUSPECTS THAT NOVEMBER'S RETAIL SALES FIGURES WILL BE REVISED UPWARD WHAT WE WILL HAVE IS A GOOD SOLID STRING OF CONSUMER SPENDING MR GODFREY SAYS RETAIL SALES HAVE BEEN ON THE UPSWING SINCE SEPTEMBER RISING 05 IN THAT MONTH AND 19 IN OCTOBER AND WHAT ADDS EXTRA SWEETNESS TO THE INCREASED CONSUMER ACTIVITY IS THAT INFLATION REMAIN MODEST DURING DECEMBER MR GODFREY PREDICTS FOR THE END OF THE YEAR CONSUMER PRICES SHOULD BE UP ONLY 3 HE SAYS RETAIL SALES STRONG AND INFLATION SUBDUED THAT'S GOING TO BE A GOOD COMBINATION HE SAYS BUT ALL THE NEWS MAY NOT BE AS BRIGHT THIS WEEK THE UNEMPLOYMENT FIGURES RELEASED FRIDAY BY THE LABOR DEPARTMENT SHOWED THAT THE AVERAGE WORK WEEK AND HOURLY EARNINGS WERE DOWN IN DECEMBER BOTH HAD INCREASED IN OCTOBER AND NOVEMBER AS A RESULT INDUSTRIAL PRODUCTION IN DECEMBER WAS PROBABLY A LITTLE WEAK MR GODFREY SAYS 9301110057 930111 WORLD MARKETS MODERATE GAINS SEEN FOR MADRID STOCK PRICES AIDED BY RATECUT POTENTIAL AMID UNCERTAINTIES BY MICHELLE WALLIN SPECIAL TO THE WALL STREET JOURNAL MADRID THE POTENTIAL FOR INTERESTRATE CUTS IN THE FIRST QUARTER IS EXPECTED TO HELP SPANISH STOCKS OVERCOME THE EFFECTS OF SPAIN'S STAGNANT ECONOMIC GROWTH AND POST MODERATE GAINS ANALYSTS SAID THE MADRID GENERAL INDEX WILL REACH 240 POINTS BY MARCH 31 AND COULD GO HIGHER IF GERMAN AND SPANISH INTEREST RATES COME DOWN ANALYSTS PREDICTED THE INDEX FINISHED 1992 AT 21425 ON FRIDAY THE AVERAGE ROSE 004 POINT TO 22016 SPAIN WHERE THE BENCHMARK INTEREST RATE STANDS AT 1375 WOULD JUMP ON THE CHANCE TO FOLLOW ANY EARLY MOVE BY GERMANY TO LOOSEN ITS MONETARY POLICY ANALYSTS SAID BUT EVEN WITH GERMANY STANDING FIRM IT DECIDED LAST WEEK TO LEAVE ITS KEY RATES UNCHANGED SPANISH RATES WILL PROBABLY FALL IN THE FIRST QUARTER AS THE COUNTRY'S ECONOMIC GROWTH GRINDS TO A STANDSTILL AND INFLATION EASES THE POOR REAL ECONOMIC SITUATION WILL BE COMPENSATED BY AN INTERESTRATE CUT SAID MIGUEL ANGEL GARCIA CHIEF ANALYST AT THE MADRID BROKERAGE FIRM INVERBAN SVB HE SAID SIGNS THAT THE US ECONOMIC RECOVERY IS GATHERING MOMENTUM ALSO WILL BOOST MADRID SHARE PRICES THE RELATIVELY SMALL MADRID MARKET IS DOMINATED BY FOREIGN INVESTORS PARTICULARLY FROM BRITAIN AND THE US AND A BULLISH US ECONOMY OFTEN LEADS TO EXPANSIVE INVESTMENT POLICIES FROM INVESTORS THERE THE BANK OF SPAIN RECENTLY FORECAST ECONOMIC GROWTH WILL SLOW TO LESS THAN 03 IN THE FIRST HALF FROM ABOUT 1 IN THE 1992 THIRD QUARTER THE ANNUAL INFLATION RATE MEANWHILE WAS ESTIMATED AT 55 FOR LAST YEAR AND IS EXPECTED TO DROP THROUGHOUT THIS YEAR THE SPANISH PESETA'S RENEWED STABILITY FOLLOWING TWO AUTUMN DEVALUATIONS WITHIN THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM ALSO WOULD PERMIT AUTHORITIES TO CUT RATES SAID JOSE LUIS FEITO AN ECONOMIST THE MADRID BROKERAGE FIRM ASESORES BURSATILES SA MR FEITO SINGLED OUT THE BANKING SECTOR FOR THE MOST POTENTIAL GAINS FROM AN INTERESTRATE CUT AND WHILE HE ACKNOWLEDGED BANKS' NONPERFORMING LOANS MAY GROW AS THE ECONOMY STOPS EXPANDING HE SAID LOWER RATES WILL HELP THEM RECOVER TROUBLED LOANS THE BANKING SECTOR ALSO IS EXPECTED TO GET A BOOST IN THE CURRENT QUARTER FROM THE MIDDECEMBER DECISION BY THE BANK OF SPAIN TO REDUCE THE RESERVE REQUIREMENT FOR COMMERCIAL BANKS TO 3 FROM 45 ANALYSTS SAID THE UTILITIES SECTOR WINS ANALYSTS' FAVOR FOR ITS STEADY CONSUMER DEMAND AND THE MEASURE OF PROTECTION IT PROVIDES AGAINST AN ECONOMIC SLOWDOWN THE ELECTRICAL UTILITIES UNION FENOSA IBERDROLA AND HIDROELECTRICA DEL CANTABRICO AND THE NATURALGAS SUPPLIER GAS NATURAL SDG ARE ALL EXPECTED TO HAVE STRONG PERFORMANCES IN THE FIRST QUARTER ANALYSTS ALSO WERE OPTIMISTIC THAT LAST YEAR'S STEEP LOSSES WILL MANAGE TO BE SHAKEN OFF BY BLUECHIP CONSTRUCTION COMPANIES SUCH AS DRAGADOS & CONSTRUCCIONES AND FOMENTO DE CONSTRUCCIONES & CONTRATAS AND BY THE CEMENT FIRM PORTLAND VALDERRIVAS CONSTRUCTION STOCKS ARE LIKELY TO GET A BOOST IF THE CENTRAL GOVERNMENT BEGINS TO REDUCE ITS COPIOUS BILLS OUTSTANDING FOR PUBLICWORKS PROJECTS THE GOVERNMENT ALSO HAS VOWED TO MAINTAIN SPENDING ON INFRASTRUCTURE AT 5 OF THE GROSS DOMESTIC PRODUCT CONSTRUCTION FIRMS ALSO ARE EXPECTED TO BENEFIT FROM EUROPEAN COMMUNITY PROJECTS THE REAL ESTATE COMPANIES VALLEHERMOSO AND INMOBILIARIA METROPOLITANA VASCO CENTRAL ARE SEEN BENEFITING FROM THE SPANISH GOVERNMENT'S APPROVAL LAST MONTH OF LEGISLATION PARTLY DEREGULATING THE RIGID PROPERTY MARKET VALLEHERMOSO AND METROVACESA ARE EXPECTED TO POST REVENUE INCREASES AS DECADESOLD RENT CONTROLS ARE GRADUALLY LIFTED ON COMMERCIAL PROPERTY NEW LEGISLATION ALSO MAY HELP THE STATERUN TOBACCO MONOPOLY TABACALERA PARLIAMENT LAST MONTH PASSED A TOBACCO ACT AMENDMENT THAT ALLOWS THE PRIVATIZATION OF TABACALERA OVERALL ANALYSTS SAID GAINS ON THE MADRID EXCHANGE WILL BE MODERATE TEMPERED BY PERSISTENT UNDERLYING UNCERTAINTIES ANTONIO CASTELO A PRIVATE EQUITY CONSULTANT SAID HE BELIEVES THE MARKET WILL RALLY MODESTLY EVEN THOUGH I DON'T THINK THE LARGER PROBLEMS BOTH AT AN INTERNATIONAL AND NATIONAL LEVEL HAVE PASSED HE NOTED DOUBTS ABOUT THE FUTURE OF THE EXCHANGE RATE MECHANISM AND THE PROCESS OF EC INTEGRATION ANOTHER POSSIBLE THREAT TO THE STABILITY OF THE SPANISH ECONOMY IS THE PROSPECT OF GENERAL ELECTIONS WHICH THE SOCIALIST GOVERNMENT MUST CALL BEFORE YEAR END TOKYO STOCKS' DROP CONTINUED FRIDAY AS THE MARKET'S MOOD GOT EVER DARKER AND THE NIKKEI HIT ITS LOWEST CLOSING LEVEL SINCE NOV 17 LONDON SHARES FELL IN TOKYO THE NIKKEI 225STOCK INDEX WHICH EASED 190 POINTS THURSDAY LOST 14629 TO 1663469 JUST A FRACTION ABOVE THE INTRADAY LOW OF 1663449 ON MONDAY THE NIKKEI FELL 9120 POINTS TO CLOSE THE MORNING SESSION AT 1654349 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 210 MILLION SHARES COMPARED WITH 2198 MILLION SHARES THURSDAY THE TURNOVER WAS EXTREMELY THIN BECAUSE 110 MILLION SHARES WERE TRADED IN THE FIRST HOUR FOR POSITION ADJUSTMENTS RELATED TO SETTLEMENT OF JANUARY INDEX OPTION CONTRACTS LOSERS TROUNCED GAINERS 602301 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 638 POINTS THURSDAY DECLINED 873 TO 128952 SELLING CONTINUED THROUGHOUT THE TOKYO SESSION BY ARBITRAGERS AND DEALERS USING COMPUTERDRIVEN PROGRAMS THE MARKET WAS PESSIMISTIC ABOUT A PLANNED NEW JAPANESE SPENDING STIMULUS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 173 POINTS TO 27992 JUST ABOVE THE SESSION'S LOW OF 27979 THE FT 30STOCK INDEX GAVE UP 135 POINTS TO 21798 VOLUME WAS 7739 MILLION SHARES COMPARED WITH 7557 MILLION SHARES A DAY EARLIER LONDON STOCKS CONTINUED TO PAUSE AFTER A YEAREND RALLY AND ANALYSTS SAID THAT WHILE INVESTORS WERE LOCKING IN PROFITS THE MARKET'S LONGERTERM OPTIMISM HADN'T CHANGED IN FRANKFURT SHARE PRICES FELL BROADLY PARTLY IN REACTION TO THE GERMAN CENTRAL BANK'S INACTION LAST WEEK ON HIGH LENDING RATES WHICH PROMPTED FOREIGN INVESTORS TO UNLOAD POSITIONS THE DAX 30STOCK INDEX DECLINED 1098 POINTS TO 153152 FRACTIONALLY ABOVE THE DAY'S LOW OF 153118 THE DROPS ALSO WERE ATTRIBUTED TO WEAKNESS ON THE NEW YORK AND TOKYO EXCHANGES ELSEWHERE SYDNEY SHARE PRICES SLUMPED 19 ON PROFITTAKING THAT DRAGGED THE MARKET'S MAIN INDEX DOWN TO ITS LOWEST LEVEL SINCE DEC 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 9301110056 930111 ABREAST OF THE MARKET WHY INVESTORS BETTER WATCH CLINTON'S MOVES BY DOUGLAS R SEASE STAFF REPORTER OF THE WALL STREET JOURNAL ARKANSAS GOV BILL CLINTON BECOMES THE NATION'S 42ND PRESIDENT IN NINE DAYS AND INVESTORS HAD BETTER BE PAYING ATTENTION AS HE TRIES TO CONVERT CAMPAIGN PROMISES INTO REALITY KEEPING A CLOSE EYE ON HOW THE NEW PRESIDENT FARES COULD HELP INVESTORS AVOID SOME POTENTIALLY NASTY SURPRISES OR TAKE ADVANTAGE OF SOME FAVORABLE STOCKMARKET TRENDS WHAT SHOULD INVESTORS BE WATCHING ONE POTENTIAL STUMBLING BLOCK FOR STOCKS IS THE NATION'S UNEMPLOYMENT RATE MICKY LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES SAYS HE EXPECTS A CLINTON ADMINISTRATION TO DO LESS TO STIMULATE THE ECONOMY AND MORE TO REDUCE THE BUDGET DEFICIT THAN MANY PEOPLE EXPECT AT LEAST IN THE FIRST SEVERAL MONTHS OF 1993 BUT HE WARNS THAT IF THE ECONOMY DOESN'T START GENERATING MORE NEW JOBS SOON MR CLINTON WILL BE PRESSURED TO TAKE MORE DRASTIC STEPS THAT MIGHT NOT SIT WELL WITH INVESTORS THE KIND OF RECOVERY WE'RE IN IS ONE THAT WILL GENERATE ECONOMIC GROWTH FASTER THAN MOST PEOPLE EXPECT BUT IT WON'T GENERATE MUCH JOB GROWTH MR LEVY SAYS SIX MONTHS FROM NOW CLINTON MAY HAVE TO TAKE STEPS THAT WOULD ALARM THE BOND MARKET AND THAT ULTIMATELY WILL HURT STOCKS BYRON WIEN A MARKET STRATEGIST AT MORGAN STANLEY NOTES THAT THE CLINTON ADMINISTRATION IS INHERITING A NEARLY PERFECT ECONOMIC SCENARIO FOR THE STOCK MARKET MODEST GROWTH AND LOW INFLATION THE ECONOMY IS BEING VERY ACCOMMODATIVE HE SAYS CLINTON WILL HAVE TO DO LESS TO STIMULATE IT AND THEREFORE HE CAN CONCENTRATE ON DOING THE RIGHT THING RATHER THAN THE DRAMATIC THING BUT MR WIEN SEES SOME DANGER POINTS AHEAD ONE IS MR CLINTON'S PERSONALITY THE KNOCK ON BILL CLINTON IS THAT HE NEEDS TO BE LOVED AND THAT HE WILL DO A LOT OF THINGS TO PLEASE A LOT OF PEOPLE HE SAYS THAT MEANS THERE'S A DANGER THAT HE COULD BECOME A TYPICAL TAXANDSPEND' DEMOCRAT THE NEW PRESIDENT'S LACK OF EXPERTISE IN FOREIGN AFFAIRS ALSO COULD THREATEN STOCK PRICES MR WIEN SAYS YOU'VE GOT TO WATCH HIS PERFORMANCE IN FOREIGN POLICY HE ASSERTS CLINTON WILL PROBABLY BE TESTED EARLY AND THERE'S A RISK HE COULD BECOME BEFUDDLED IN ONE OF THOSE TESTS AND LOSE THE AMERICAN PEOPLE'S CONFIDENCE THAT CONFIDENCE IS ABOUT THE ONLY THING HOLDING THE STOCK MARKET AT ITS CURRENT HIGH LEVELS MR WIEN SAYS THE MARKET IS RIDING A CREST OF ENTHUSIASM FOR THE NEW ADMINISTRATION BUT STOCKS ARE FULLY PRICED HE SAYS IF WE LOSE CONFIDENCE IN THE NEW PRESIDENT THEN SUCH BORING THINGS AS VALUATION WILL COME BACK INTO FOCUS CALLING SPECIFIC INVESTMENT PLAYS BEFORE MR CLINTON IS EVEN SWORN INTO OFFICE ISN'T EASY MR WIEN SAYS INDEED HE SHIES AWAY FROM SUGGESTING ANY KIND OF CLINTON PORTFOLIO SUGGESTING INSTEAD THAT INVESTORS BUILD THEIR STOCK SELECTIONS AROUND FOUR MAJOR ASSUMPTIONS THE ECONOMY IS DOING BETTER THAN PEOPLE THINK INTEREST RATES WILL FALL MORE THAN THEY THINK CONSUMER GROWTH STOCKS ARE IN A LONGTERM DECLINE AND ECONOMICALLY SENSITIVE CYCLICAL STOCKS WILL OUTPERFORM THE OVERALL MARKET WITH THOSE FOUR ASSUMPTIONS YOU CAN PUT TOGETHER A POWERFUL PORTFOLIO THAT DOESN'T DEPEND THAT MUCH ON WHAT THE PRESIDENT DOES MR WIEN SAYS HE LIKES SUCH STOCKS AS CHRYSLER INTEL AMERICAN AIRLINES PARENT AMR AND CITICORP THOMAS GALLAGHER A POLITICAL ANALYST IN WASHINGTON FOR SHEARSON LEHMAN AGREES THAT THE BEST TEST OF THE NEW PRESIDENT WILL BE HIS FISCAL POLICY HE IS EXPECTING A BUDGET PROPOSAL FROM THE CLINTON ADMINISTRATION THAT RESULTS IN A MODEST INCREASE IN THE DEFICIT THIS YEAR BEFORE IT BEGINS DECLINING LATER THE CRUCIAL QUESTION IS HOW THE BOND MARKET WILL REACT TO THAT HE SAYS FUTURE DEFICIT REDUCTIONS ALONE AREN'T A REASON FOR THE BOND MARKET TO RALLY HE SAYS NOTING THE BUSH ADMINISTRATION'S FAILURES TO MAKE GOOD ON PROMISES OF A REDUCED DEFICIT BUT IF MR CLINTON'S BUDGET PROPOSAL AT LEAST NEUTRALIZES THE WORRY OVER THE BURGEONING DEFICIT MR GALLAGHER FIGURES THE BOND MARKET REFOCUSING ON LOW INFLATION COULD POST SOME GAINS AND IF LONGTERM INTEREST RATES FALL HE SAYS THE STOCK MARKET WILL HAVE A CHANCE TO MOVE HIGHER ONCE THE FISCAL ISSUES ARE SETTLED HE SAYS IT WILL BE UP TO INVESTORS TO DETERMINE WHICH SECTORS OF THE STOCK MARKET WILL BENEFIT OR SUFFER UNDER A CLINTON ADMINISTRATION AND THAT WON'T BE EASY LAST YEAR THE ONLY ISSUE WE HAD TO WORRY ABOUT WAS WHO WOULD WIN THE ELECTION HE SAYS NOW AS THE NEW ADMINISTRATION GOES TO WORK WE'VE GOT 15 OR SO SEPARATE ISSUES TO THINK ABOUT CLEARLY STOCKS OF COMPANIES THAT ARE INVOLVED IN INFRASTRUCTURE THE REBUILDING OF AMERICA'S ROADS AND HIGHWAYS AND THE ENVIRONMENT ARE AREAS THAT WILL DO WELL UNDER MR CLINTON'S PRESIDENCY AND HEALTH CARE IS A WILD CARD HE SAYS BUT THERE ARE LOTS OF LESS PROMINENT POLICY CHANGES THAT COULD AFFECT CERTAIN STOCKS SUCH AS A POSSIBLE EFFORT TO LIMIT THE DEDUCTIBILITY OF EXECUTIVE COMPENSATION MR GALLAGHER SUGGESTS THAT A PROPOSAL LIKE THAT COULD HURT SOME HIGHTECH COMPANIES AND SECURITIES FIRMS WITH LOTS OF HIGHLY PAID EMPLOYEES POSSIBLE TRADE SANCTIONS AGAINST CHINA WOULD HIT NOT ONLY US IMPORTERS OF TOYS AND APPAREL HE SAYS BUT ALSO EXPORTERS OF SUCH THINGS AS AIRCRAFT AND AGRICULTURAL PRODUCTS IF CHINA RETALIATES AND EFFORTS TO RAISE MORE REVENUE FROM FOREIGN COMPANIES OPERATING IN THE US COULD HURT THE STOCK PRICES OF SOME FOREIGN COMPANIES TRADED ON US EXCHANGES AS DEPOSITARY RECEIPTS I DON'T THINK CLINTON ALONE IS A REASON TO BE IN OR OUT OF STOCKS OVERALL MR GALLAGHER SAYS BUT HE'LL BE A REASON TO BE IN OR OUT OF CERTAIN STOCKS WHILE INVESTORS WILL HAVE TO WATCH CAREFULLY WHAT MR CLINTON DOES IT'S PROBABLY TOO EARLY FOR THEM TO LIE AWAKE WORRYING IF YOU WERE LISTENING TO CLINTON DURING THE CAMPAIGN YOU MIGHT BE A LITTLE CONCERNED AS AN INVESTOR MR WIEN SAYS IF HE PUTS TO WORK ALL THE PROGRAMS HE TALKED ABOUT THE BUDGET DEFICIT WOULD BE A LOT BIGGER THAN ANYBODY ANTICIPATED AND THAT COULD BE BAD FOR BOTH BONDS AND STOCKS FORTUNATELY MR WIEN SAYS IT ISN'T LIKELY THAT MR CLINTON WILL PURSUE ALL THOSE PROGRAMS THERE'S SOME REASON TO THINK THAT HE WON'T BE ANY DIFFERENT FROM OTHER PRESIDENTS WHO SAID A LOT OF THINGS IN THE CAMPAIGN THAT THEY COULDN'T OR DIDN'T DELIVER ON LATER STOCK PRICES SLID AS INVESTORS WORRIED ABOUT MIDDLE EAST TENSIONS AND SOME DISAPPOINTING ECONOMIC NEWS THE DOW JONES INDUSTRIAL AVERAGE FELL 1729 POINTS TO 325167 STANDARD & POOR'S 500STOCK INDEX LOST 168 POINTS TO 42905 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID 105 POINTS TO 23621 VOLUME ON THE BIG BOARD WAS A HEAVY 262620000 SHARES DOWN FROM 303 MILLION SHARES ON THURSDAY DECLINING ISSUES OUTPACED ADVANCERS 1184 TO 687 FOR THE WEEK THE INDUSTRIAL AVERAGE DECLINED 15 THE S&P ALSO DROPPED 15 AND BIG BOARD COMPOSITE SANK 17 WORLDWIDE STOCK PRICES DECLINED THE DOW JONES WORLD STOCK MARKET INDEX LOST 054 TO CLOSE AT 9114 STOCK PRICES WERE PRESSURED EARLY BY A WEAKERTHANEXPECTED DECEMBER EMPLOYMENT FIGURE AND LATER IN THE DAY BY NEWS THAT IRAQ HAD BANNED ALL FLIGHTS BY UNITED NATIONS WEAPONS INSPECTORS WITHIN THE COUNTRY MILLIPORE FELL 3 7/8 TO 30 3/4 AFTER IT SAID FOURTHQUARTER SALES DROPPED 5 TO ABOUT 193 MILLION FROM THE YEARAGO 204 MILLION SALES FOR 1992 HOWEVER INCREASED 2 TO ABOUT 777 MILLION THE BEDFORD MASS PURIFICATION TECHNOLOGY CONCERN BLAMED THE FOURTHQUARTER DECLINE ON JAPAN'S WEAK ECONOMY SALES IN JAPAN WERE DOWN ABOUT 12 MILLION FOR THE FOURTH QUARTER COMPARED WITH A YEAR EARLIER WERTHEIM SCHRODER CUT ITS INVESTMENT RATING ON THE STOCK TO HOLD FROM ACCUMULATE VISHAY INTERTECHNOLOGY ROSE 1 TO 34 7/8 SALOMON BROTHERS RAISED ITS INVESTMENT RATING ON THE MALVERN PA ELECTRONIC PARTS MANUFACTURER TO BUY FROM HOLD SALOMON EXPECTS 1992 EARNINGS FOR THE COMPANY OF 180 A SHARE AND 1993 EARNINGS OF 245 A SHARE FOUR OIL STOCKS SLIPPED AFTER SALOMON BROTHERS DOWNGRADED THEM TO HOLD FROM BUY CITING A MORE PESSIMISTIC VIEW ON OIL PRICES PARKER & PARSLEY PETROLEUM SANK 1 TO 13 5/8 SANTA FE ENERGY RESOURCES SLID 1/8 TO 7 7/8 APACHE CORP EASED 1/2 TO 17 5/8 AND LOUISIANA LAND & EXPLORATION WAS OFF 3/4 TO 32 HOOK SUPERX SLID 2 3/8 TO 10 1/2 THE CINCINNATI DRUG CHAIN REPORTED A FISCAL FIRSTQUARTER LOSS OF EIGHT CENTS A SHARE OR 17 MILLION THAT COMPARES WITH A YEAREARLIER LOSS OF 20 CENTS A SHARE OR 26 MILLION GENERAL PUBLIC UTILITIES SANK 5/8 TO 26 3/8 AFTER NEWS THAT THE PENNSYLVANIA PUBLIC UTILITY COMMISSION APPEARED TO HAND DOWN AN UNFAVORABLE RULING FOR THE COMPANY ALASKA AIR GROUP LOST 1/8 TO 17 1/8 THE SEATTLE CARRIER SAID IT EXPECTS TO TAKE ONETIME CHARGES TOTALING 22 MILLION OR 166 A SHARE AGAINST 1992 RESULTS STEVEN E LEVINGSTON CONTRIBUTED TO THIS ARTICLE 9301110055 930111 BUSINESS BRIEF LA QUINTA MOTOR INNS LP DISSIDENT GROUP SAYS IT WON VOTE TO DISSOLVE PARTNERSHIP RONIN PARTNERS LP A DISSIDENT GROUP OF UNITHOLDERS OF LA QUINTA MOTOR INNS LP SAN ANTONIO TEXAS SAID THAT HOLDERS OF MORE THAN 50 OF THE LA QUINTA LIMITED PARTNERSHIP'S UNITS HAD VOTED IN FAVOR OF RONIN'S PROPOSAL TO DISSOLVE AND RESTRUCTURE THE CONCERN WHICH OWNS INNS AND RESTAURANTS THE TWO PARTNERSHIPS HAVE BEEN STRUGGLING FOR CONTROL OF THE LA QUINTA LIMITED PARTNERSHIP SINCE LAST YEAR RONIN HAS CHARGED THAT LA QUINTA'S GENERAL PARTNER WHICH IS A UNIT OF THE MOTEL CHAIN LA QUINTA MOTOR INNS INC HAS CHARGED EXCESSIVE MANAGEMENT FEES AND SIPHONED CASH FROM THE PARTNERSHIP AT THE EXPENSE OF ITS UNITHOLDERS RONIN BEGAN SOLICITING CONSENTS FROM UNITHOLDERS REGARDING ITS PROPOSAL TO DISSOLVE THE PARTNERSHIP IN NOVEMBER A SPOKESMAN FOR LA QUINTA MOTOR INNS LP DECLINED TO CONFIRM OR COMMENT UPON THE RESULTS OF THE VOTING STEVEN T SCHULTZ PRESIDENT OF LA QUINTA REALTY CORP THE PARTNERSHIP'S GENERAL PARTNER SAID HE HADN'T HAD AN OPPORTUNITY TO REVIEW THE CONSENTS WHICH HE SAID ARRIVED AT HIS OFFICE LATE FRIDAY 9301110054 930111 BUSINESS BRIEF SOUTHWESTERN BELL CORP PACT REACHED WITH LOCATE ON SALE OF PAGING SUBSIDIARY SOUTHWESTERN BELL CORP ST LOUIS SAID IT REACHED AN AGREEMENT TO SELL ITS METROMEDIA PAGING SERVICES UNIT TO LOCATE A CLOSELY HELD COMMUNICATIONS COMPANY BASED IN NEW YORK CITY TERMS WEREN'T DISCLOSED METROMEDIA PAGING BASED IN RIDGEFIELD PARK NJ IS ONE OF THE NATION'S LEADING PAGING COMPANIES WITH ABOUT 11 MILLION PAGERS IN SERVICE IN 31 MARKETS INCLUDING SEVERAL MAJOR CITIES THE TRANSACTION IS EXPECTED TO CLOSE IN MID1993 PENDING STATE AND FEDERAL REGULATORY APPROVALS LOCATE SAID IT PLANS TO MARKET THE PAGING SERVICES UNDER THE NAME OF LOCATE PAGING INC SOUTHWESTERN BELL SAID IT OBTAINED THE RIGHT TO BE A SALES AGENT FOR THE PAGING SERVICES BUT THE REGIONAL BELL TELECOMMUNICATIONS COMPANY DECIDED THAT OWNING A PAGING NETWORK NO LONGER FIT ITS STRATEGY LOCATE PROVIDES LOCAL DIGITAL MICROWAVE SERVICES TO COMPANIES AND LONGDISTANCE TELEPHONE CARRIERS IT ALSO HAS BEEN DEVELOPING PERSONAL COMMUNICATIONS SERVICES THE NEXT GENERATION OF WIRELESS COMMUNICATIONS SERVICES 9301110052 930111 BUSINESS BRIEF JENNIFER CONVERTIBLES INC SOFABED MAKER EXPERIMENTS WITH NEW FURNITURE LINES JENNIFER CONVERTIBLES INC SAID IT IS GOING TO EXPERIMENT WITH EXPANDING ITS CURRENT SOFABED BUSINESS BY OPENING NEW STORES THAT SELL REGULAR FURNITURE THE COMPANY SAID A NEW GROUP OF STORES CALLED ELEGANT LIVING WILL SPECIALIZE IN UPHOLSTERED LIVING ROOM FURNITURE A SECOND GROUP JENNIFER LEATHER WILL SPECIALIZE IN LEATHER FURNITURE THE NEW STORES IN THE NEW YORK METROPOLITAN AREA WILL BE OWNED BY A LICENSEE WHO WILL PAY A ROYALTY OF 2 OF SALES THE FIRST STORES IN EACH GROUP OPENED RECENTLY ON LONG ISLAND JENNIFER IS BASED IN PARAMUS NJ HARLEY J GREENFIELD PRESIDENT OF JENNIFER SAID HE WAS CONFIDENT THE COMPANY COULD EVENTUALLY EXPAND THE STORE CHAINS BEYOND NEW YORK AND COMMAND THE 5 ROYALTY CURRENTLY PAID BY LICENSEES OF JENNIFER CONVERTIBLES STORES HE SAID THE MARKET FOR LEATHER FURNITURE IS ABOUT EQUAL TO THAT OF SOFABEDS WHILE THE MARKET FOR REGULAR SOFAS IS ABOUT FOUR TIMES BIGGER 9301110051 930111 BANKS EXPECTED TO POST STRONG 4THQUARTER NET LOW INTEREST RATES FEWER PROBLEM LOANS HERALD RECORD RESULTS FOR '92 BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BANKING COMPANIES CONTINUED TO RACK UP STRONGER EARNINGS THAN MOST OTHER INDUSTRIES IN THE FOURTH QUARTER MAKING 1992 WHAT IS EXPECTED TO BE THE BEST YEAR EVER FOR BANKING PROFITS ANALYSTS SAY LOW INTEREST RATES FEWER PROBLEM LOANS AND A SLIGHT PICKUP IN DEMAND FOR CREDIT ALL CONTRIBUTED TO A STRONG FOURTH QUARTER SALOMON BROTHERS PREDICTS THAT FOURTHQUARTER EARNINGS FOR ITS 50BANK AVERAGE WILL RISE 272 FROM THE YEAREARLIER QUARTER AND BY 36 FROM THE STRONG THIRDQUARTER FIGURES MEANWHILE CAPITAL RATIOS WILL CONTINUE TO SHOW IMPROVEMENTS THE BANKING INDUSTRY'S BEST YEAR EVER IS MORE OR LESS IN THE BAG THE ONCEBATTERED INDUSTRY POSTED RECORD RESULTS FOR THE FIRST NINE MONTHS OF 1992 AND THE FOURTH QUARTER WILL LOOK A LOT LIKE THE THIRD SAID RAPHAEL SOIFER BANKING ANALYST AT BROWN BROTHERS HARRIMAN & CO REFLECTING THE GENERALLY BULLISH OUTLOOK BANK STOCKS HAVE SOARED IN RECENT MONTHS SINCE EARLY OCTOBER THEY HAVE RISEN BY ABOUT 15 COMPARED WITH ABOUT 5 FOR THE STANDARD AND POOR'S 500 STOCK INDEX THE OPERATING RESULTS WILL BE MASKED BY A SERIES OF ACCOUNTING CHANGES THAT MANY BANKS ARE LIKELY TO HAVE ADOPTED IN THE FOURTH QUARTER FINANCIAL ACCOUNTING STANDARD BOARD STATEMENT 106 WHICH REQUIRES COMPANIES TO ACCOUNT FOR RETIREE HEALTH BENEFITS AND FASB 109 WHICH ALLOWS THE ACCELERATION OF RECOGNITION OF TAX BENEFITS COULD CAUSE WIDE SWINGS IN BOTTOMLINE RESULTS ANALYSTS SAY BIG MONEYCENTER BANKS SHOULD GENERALLY PERFORM WELL WITH THE POSSIBLE EXCEPTION OF A NUMBER OF CALIFORNIA BANKS PROVISIONS FOR LOAN LOSSES WHICH ARE DEDUCTED FROM EARNINGS SHOULD FALL FROM BOTH YEAREARLIER LEVELS AND THOSE OF THE THIRD QUARTER IN THE THIRD QUARTER THE INDUSTRY'S TOTAL CHARGES FOR LOAN LOSSES FELL TO 68 BILLION FROM 89 BILLION A YEAR EARLIER STILL A FEW BANKS COULD ACCELERATE THE CHARGEOFFS OF BAD LOANS IN THE QUARTER YOU COULD GET THE USUAL YEAREND CLEANUP SAID LIVIA ASHER OF MERRILL LYNCH & CO ALSO FUELING EARNINGS WILL BE THE CONTINUED WIDE GAP BETWEEN BORROWING RATES AND THE YIELDS ON LOANS AND OTHER ASSETS THE SOCALLED NET INTEREST MARGINS SHOULD CONTINUE TO HELP THE INDUSTRY'S BOTTOM LINE ALTHOUGH THEY BEGAN PEAKING IN THE THIRD QUARTER AND THE INCREMENTAL BENEFIT IS DIMINISHING SOME BIG BANKS SUCH AS CITICORP CHASE MANHATTAN CORP AND CHEMICAL BANKING CORP WILL GET AN ADDED BOOST FROM PAST DUE INTEREST FROM BRAZIL THAT WAS PAID IN THE QUARTER IN THE FORM OF CASH AND MARKETABLE BONDS AMONG POSITIVE SURPRISES FIRST CHICAGO CORP IS EXPECTED TO EARN AROUND 105 A SHARE HELPED BY STABLETOFATTER NET INTEREST MARGINS AND GAINS FROM EQUITY INVESTMENTS ACCORDING TO SALOMON FIRST CHICAGO'S QUARTERLY CHARGE FOR LOSSES WILL DROP SHARPLY AFTER THE COMPANY INCURRED A 625 MILLION PROVISION IN THE THIRD QUARTER TO WRITE DOWN THE VALUE OF 2 BILLION OF COMMERCIAL REAL ESTATE ASSETS THE COMPANY WILL ALSO LIKELY DISCLOSE THAT IT SOLD ROUGHLY 200 MILLION OF THE TROUBLED PORTFOLIO SAY ANALYSTS FIRST CHICAGO AND A GROWING ROSTER OF BANKS HAVE BEEN DISPOSING OF TROUBLED REAL ESTATE ASSETS AFTER WRITING DOWN THEIR PORTFOLIOS NATIONSBANK CORP AND FLEET FINANCIAL GROUP HAVE BOTH SOLD HUNDREDS OF MILLIONS OF DOLLARS WORTH OF DISTRESSED REAL ESTATE PROPERTIES A FIRST CHICAGO SPOKESWOMAN DECLINED COMMENT ON WHETHER FIRST CHICAGO ALSO HAD SOLD DISTRESSED PROPERTIES AMONG LARGER BANKS BANK OF NEW YORK CO CHASE MANHATTAN AND CHEMICAL ARE EXPECTED TO POST STRONG RESULTS WALL STREET IS LOOKING FOR BANK OF NEW YORK TO REPORT FOURTHQUARTER EARNINGS OF 111 A SHARE ACCORDING TO A CONSENSUS ESTIMATE TABULATED BY FIRST CALL CORP CITICORP PERHAPS THE TOUGHEST BANK TO FORECAST IS EXPECTED TO EARN AROUND 32 CENTS A SHARE BUT THESE LARGE BANKS WILL NOT LIKELY HAVE BIG REVENUE GAINS FROM SECURITIES AND CURRENCY TRADING ACTIVITIES SIMILAR TO THE THIRD QUARTER WHEN MANY RAKED IN STRONG PROFITS AS A RESULT OF THE EUROPEAN CURRENCY CRISIS MOREOVER DECEMBER IS TYPICALLY A SLOWER MONTH IN THE MARKETS AND THOSE TRADERS THAT RECEIVED THEIR BONUSES EARLIER BECAUSE OF POSSIBLE TAX LAW CHANGES MIGHT BE LESS WILLING TO TAKE ON RISKS AT YEAREND SAYS MR SOIFER I'M LOOKING FOR A MODEST DECLINE IN TRADING PROFITS HE SAYS BANKERS TRUST FOR INSTANCE IS EXPECTED TO EARN AROUND 205 A SHARE DOWN FROM 245 A SHARE IN THE THIRD QUARTER ACCORDING TO FIRST CALL SIMILARLY JP MORGAN & CO IS EXPECTED TO EARN AROUND 147 A SHARE UP FROM 201 A SHARE IN THE THIRD QUARTER THE ONLY REAL NEGATIVE SURPRISES COULD COME FROM WEST COAST BANKS MR SOIFER SAID WELLS FARGO & CO WHICH HAS A MAJOR EXPOSURE TO THE TROUBLED CALIFORNIA REAL ESTATE MARKET COULD TAKE A LARGE PROVISION THAT COULD WIPE OUT EARNINGS FOR THE QUARTER THERE IS ALSO SOME SPECULATION THAT WELLS FARGO MIGHT REDUCE ITS 50CENT QUARTERLY DIVIDEND THE CONSENSUS ESTIMATE IS FOR THE COMPANY TO EARN 71 CENTS A SHARE IN THE FOURTH QUARTER AND WHILE NEIGHBORING BANKAMERICA CORP IS EXPECTED TO POST EARNINGS OF AROUND 115 TO 120 A SHARE FOR THE QUARTER THE NATION'S SECONDLARGEST BANK AFTER CITIBANK HAS APPARENTLY BEEN TALKING DOWN ITS EARNINGS ESTIMATES FOR THE FOURTH QUARTER AND FOR 1993 A NUMBER OF ANALYSTS HAVE RECENTLY SHAVED ESTIMATES CITING LOWERTHANEXPECTED REVENUE GROWTH AND CONCERNS ABOUT CALIFORNIA'S ECONOMY THE CONSENSUS ESTIMATE IS FOR BANKAMERICA TO EARN 121 A SHARE A COMPANY SPOKESMAN DECLINED COMMENT WHILE BANKAMERICA'S NET INTEREST MARGIN IN THE FOURTH QUARTER IS SAID TO HAVE STAYED NEAR THE THIRDQUARTER LEVEL OF 473 PERCENTAGE POINTS ANALYSTS ARE CONCERNED THAT CONSUMER AND COMMERCIAL BORROWERS HAVE BEEN PAYING DOWN THEIR DEBT REDUCING EARNING ASSETS AND NET INTEREST INCOME ALSO THE COMPANY'S LEVEL OF INTANGIBLE ASSETS WHICH MUST BE WRITTEN OFF AND DEDUCTED FROM EARNINGS WILL LIKELY RISE AGAIN IN THE QUARTER AFTER INCREASING BY 900 MILLION IN THE THIRD QUARTER ANALYSTS ALSO EXPECT THE COMPANY TO ISSUE BETWEEN 500 MILLION AND 1 BILLION IN PREFERRED STOCK THIS YEAR WHICH WOULD RAISE DIVIDEND COSTS 9301110050 930111 MARKETING & MEDIA ADVERTISING COMPLACENT SCOURINGPAD RIVALS ARE CHALLENGED BY 3M CAMPAIGN BY KEVIN GOLDMAN LIKE GRIME AND GREASE ON KITCHEN POTS AND PANS A SENSE OF COMPLACENCY HAS BEEN BUILDING UP IN THE LACKLUSTER SCOURINGPAD MARKET THE TWO LEADING BRANDS SYNONYMOUS WITH ELBOW GREASE BRILLO MADE BY DIAL CORP AND SOS PADS BY MILES INC'S CONSUMER HOUSEHOLD PRODUCTS DIVISION ARE SO SEEMINGLY SMUG IN THEIR LEADERSHIP THAT THEY ALL BUT CEASED ADVERTISING YEARS AGO THEY MAY BE FORCED TO RETHINK THAT RARE MEDIA STRATEGY SHORTLY BECAUSE AN UPSTART RIVAL BACKED BY A BIG COMPANY IS JOINING THE DUSTUP IN HOPES OF SHRINKING THEIR LEAD ST PAUL MINN GIANT MINNESOTA MINING & MANUFACTURING CO IS EXPECTED TODAY TO INTRODUCE A NEW ENTRY IN THE SOAPFILLED SCOURING PAD CATEGORY AN 80 MILLIONAYEAR BUSINESS THE NEW BRAND SCOTCH BRITE NEVER RUST IS TO BE UNVEILED TODAY AT THE INTERNATIONAL HOUSEWARES SHOW IN CHICAGO AND WILL BE SUPPORTED BY AN AD CAMPAIGN THIS YEAR AMOUNTING TO AT LEAST 9 MILLION ACCORDING TO 3M EXECUTIVES THAT IS AN ASTOUNDING AMOUNT GIVEN THAT THE CATEGORY HAS BEEN DEVOID OF ADVERTISING SINCE SOS PULLED ITS SOCALLED BIG BLUE ANIMATED TALKING PAD IN 1988 THE TELEVISION SPOT FROM INTERPUBLIC GROUP'S LINTAS USES A FEMALE ANNOUNCER SPEAKING OVER CLASSICAL MUSIC TO CONVINCE DISHPANHANDED CONSUMERS THAT ALTHOUGH ALL CLEANING PADS MIGHT LOOK ALIKE ONCE YOU START SCRUBBING THERE IS A DIFFERENCE IN THE COMMERCIAL THE BRAND X PAD FALLS APART AFTER USE ON A GREASY CASSEROLE PAN A YUCKY BARBECUE GRILL AND A FILTHY POT THE 3M PRODUCT HOWEVER JUST KEEPS GOING AND GOING AND GOING WITHOUT BEING WORN DOWN THE BUSINESS HAS BEEN MUNDANE FOR SOME TIME NOW CONCEDES MOE NOZARI VICE PRESIDENT OF 3M'S HOME AND COMMERCIAL CARE DIVISION WE FEEL THE TIME IS RIPE TO SHAKE UP THIS MARKET THERE IS LITTLE INTEREST SINCE PEOPLE PICK UP THIS PRODUCT LIKE THEY DO TOILET PAPER YET BATHROOM TISSUE AS THAT CATEGORY IS DELICATELY CALLED IS A LARGE TELEVISION AND PRINT ADVERTISER THE SCOURING PAD ISN'T A GLAMOROUS INDUSTRY MR NOZARI ADMITS BUT 3M FELT THE COMPETITION WOULD LATHER UP IN THE SOAPFILLED PAD ARENA IN THE 52 WEEKS ENDED NOV 29 SOS CLEANED UP WITH A HEFTY 473 MILLION IN SALES TO CAPTURE 588 OF THAT SEGMENT ACCORDING TO THE INFOSCAN SERVICE OF INFORMATION RESOURCES INC A CHICAGO MARKET RESEARCH COMPANY BRILLO RAN FAR BEHIND WITH SALES OF 197 MILLION OR 245 THE NEW SCOTCH BRITE TEST MARKETED IN SEVEN CITIES RECORDED A 11 SHARE WITH SALES OF 908000 EXPERTS SAY IT IS EXTREMELY RARE FOR A MARKETER OF SUCH A MAINSTREAM PRODUCT TO FEEL SO LITTLE NEED TO ADVERTISE BUT SINCE SOS AND BRILLO HAVE ADVERTISED IN THE PAST THEY ARE ENJOYING RARE RESIDUE FROM PAST EFFORTS SAYS JOSEPH SMITH CHAIRMAN OF OXTOBYSMITH A NEW YORK MARKETING CONSULTANT THE MONEY THAT WOULD BE SPENT ON ADVERTISING HE SAYS WOULDN'T SERVE ANY USEFUL PURPOSE SO THE MONEY IS KEPT IN THE POCKET OF THE CORPORATION SOS AND BRILLO SAYS MR SMITH HAVE BEEN LULLED TO SLEEP BY THEIR DOMINANCE AND COULD BE IN FOR A RUDE AWAKENING IF THE 3M PRODUCT SHINES IN THE EYES OF CONSUMERS CONSUMERS' BRAND LOYALTY ISN'T WHAT IT ONCE WAS AND CONSUMERS THESE DAYS ARE MORE OPEN TO EXPERIMENT WITH NEW PRODUCTS OF ALL KINDS IF THE NEW 3M PRODUCT FINDS A NICHE SOS AND BRILLO COULD COME BACK IN A BIG WAY PREDICTS MR SMITH THE CATEGORY LEADERS SAY THAT ISN'T LIKELY TO HAPPEN ANYTIME SOON BRILLO HASN'T SPENT A DIME ON ADVERTISING SAYS HAROLD L STRAUSS COCHAIRMAN OF THE AD AGENCY ROSENFELD SIROWITZ HUMPHRY & STRAUSS WHICH WON THE DIAL HOUSEHOLD BUSINESS LAST MARCH THEY AREN'T TERRIBLY AGGRESSIVE BECAUSE THEY DON'T HAVE TO BE BRILLO CONSIDERS THEIR COMPETITION TO BE ONLY SOS SAYS MR STRAUSS SO OTHER THAN SEEING BRILLO INCLUDED IN DIAL CORPORATE ADVERTISING YOU WON'T SEE ANY BRILLO ADVERTISING MILES SAYS IT VIRTUALLY STOPPED ADVERTISING FIVE YEARS AGO AND DROPPED ITS AD AGENCY DDB NEEDHAM A UNIT OF OMNICOM GROUP WHICH CONCEIVED THE TALKING SOS SOAP PAD WE THINK ONCE WE ADVERTISE THE OTHERS WILL FOLLOW SAYS 3M'S MR NOZARI ADDING THE COMPANY IS WILLING TO SPEND UPWARD OF 30 MILLION TO PROMOTE ITS SCOURING PRODUCT WE WILL DO HE SAYS WHATEVER IT TAKES TO MAKE IT SUCCESSFUL ANHEUSERBUSCH INC THE BIG ST LOUIS BREWER HAS DRAWN COMPLAINTS FROM CRITICS OVER PLANS FOR A BUDWEISER BEER WAGON DRAWN BY CLYDESDALE HORSES TO APPEAR IN THE PRESIDENTIAL INAUGURAL PARADE NEXT WEEK THE INAUGURATION OF A UNITED STATES PRESIDENT SHOULDN'T BE DEBASED BY HAVING A NATIONALLY TELEVISED PARADE THAT INCLUDES AN ADVERTISEMENT FOR BEER SAYS A LETTER SIGNED BY 22 HEALTH CHURCH AND ANTIALCOHOL GROUPS INCLUDING CENTER FOR SCIENCE IN THE PUBLIC INTEREST AND SENT TO PRESIDENTELECT CLINTON WE URGE YOU TO TAKE WHATEVER STEPS ARE NECESSARY TO KEEP THE BEER INTERESTS OUT OF THIS IMPORTANT EVENT THE LETTER SAYS THE CLYDESDALES ARE PART OF AMERICANA TO ATTACK THEM IS RIDICULOUS AN ANHEUSERBUSCH SPOKESMAN SAID FROM A STATEMENT CSPI IS A RADICAL SPECIAL INTEREST GROUP WELLKNOWN FOR ITS ANTIALCOHOL AGENDA MICHAEL JACOBSON EXECUTIVE DIRECTOR OF CSPI SAID ANHEUSER HAD INSINUATED THEIR ADVERTISING SYMBOL INTO AMERICANA WHICH IS A GREAT PR VICTORY HE ALSO SAID CSPI WAS FAR FROM RADICAL NOTING THAT SOME MEASURES THE GROUP HAS FAVORED INCLUDING WARNING LABELS ON ALCOHOL LABELS AND PROPOSED WARNINGS IN ALCOHOL ADVERTISING ARE EXACTLY WHAT FORMER SURGEON GENERAL KOOP AND VICE PRESIDENTELECT GORE HAVE ENDORSED IN THE PAST AN INAUGURAL COMMITTEE SPOKESWOMAN SAID THE CLYDESDALES AND BEER WAGON WERE CHOSEN BECAUSE THE ORGANIZERS WANTED A VARIETY OF BREEDS OF HORSES IN THE PARADE RIGHT NOW THE LIST OF PARTICIPANTS IS FIRM SHE SAID THE ANHEUSERBUSCH SPOKESMAN SAID THE COMPANY HAS CONTRIBUTED 100000 TOWARD THE INAUGURAL PARADE AND LENT ANOTHER 100000 TO THE EFFORT BUT THOSE CONTRIBUTIONS DIDN'T PAY FOR THE CLYDESDALES' PLACE IN THE PARADE THE SPOKESMAN SAID THERE WAS NO QUID PRO QUO 9301110049 930111 BUSINESS BRIEF CRAIG CORP FIRM SUSPENDS TALKS ON SALE OF STAKE IN STATER BROTHERS CRAIG CORP SAID IT HAD SUSPENDED DISCUSSIONS WITH READING CO REGARDING THE SALE OF CRAIG'S 50 INTEREST IN STATER BROTHERS INC STATER BROTHERS IS A SOUTHERN CALIFORNIA SUPERMARKET CHAIN WITH ANNUAL REVENUE OF MORE THAN 15 BILLION CRAIG AND A GROUP OF SENIOR EXECUTIVES OF THE SUPERMARKET CONCERN TOOK THE COMPANY PRIVATE IN 1987 CRAIG A LOS ANGELES HOLDING COMPANY WITH DIVERSE INTERESTS SAID IT HAD BEEN ADVISED THAT CERTAIN TAX AND CORPORATE ASPECTS OF THE TRANSACTION WERE NOT AS FAVORABLE AS THE PARTIES INTENDED CRAIG SAID THE PARTIES MAY RESURRECT DISCUSSIONS IN THE FUTURE BUT THERE IS NO PRESENT INTENTION TO MOVE THE DEAL FORWARD 9301110048 930111 WHO'S NEWS ANOTHER EXECUTIVE QUITS AT NEXT INC RAISING SPECULATION ABOUT FIRM'S HEALTH BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL REDWOOD CITY CALIF IS STEVE JOBS'S ATTEMPT TO RECREATE HIS LEGENDARY SUCCESS AT APPLE COMPUTER INC TURNING SOUR ON FRIDAY NEXT INC THE COMPUTER CONCERN MR JOBS COFOUNDED WITH GREAT FANFARE IN 1988 FOLLOWING HIS OUSTER FROM APPLE SAID THAT RICHARD A PAGE RESIGNED FROM NEXT MR PAGE WAS THE CLOSELY HELD COMPANY'S TOP HARDWARE EXECUTIVE AS WELL AS A COFOUNDER HE COULDN'T BE REACHED TO COMMENT BUT TOLD COLLEAGUES THAT HE WAS BURNED OUT THE DEPARTURE OF MR PAGE IS ONE OF AT LEAST SIX DEFECTIONS BY HIGHLEVEL MANAGERS IN RECENT MONTHS IT SUGGESTED A GROWING MALAISE AT THE CLOSELY WATCHED COMPANY AND RAISED SPECULATION ABOUT ITS OVERALL HEALTH AND DIRECTION NEXT WHICH MAKES ADVANCED WORKSTATIONS AIMED AT EDUCATIONAL INSTITUTIONS AS WELL AS CORPORATE CUSTOMERS HAS BEEN A ROLLERCOASTER PERFORMER ALMOST SINCE ITS INCEPTION BUT LATELY ANALYSTS SAY IT HAS BEEN STRUGGLING TO STRIKE THE RIGHT BALANCE BETWEEN ITS HARDWARE BUSINESS AND A RELATIVELY NEW EMPHASIS ON SOFTWARE PUBLISHING HIGHTECH EXECUTIVES FAMILIAR WITH NEXT SAID THE SITUATION HAS SPAWNED MANAGEMENT INFIGHTING AND FRUSTRATION THAT PROMPTED SOME OF THE DEPARTURES THERE'S A CERTAIN AMOUNT OF REINVENTION GOING ON AT NEXT AND IT'S CAUSING A LOT OF TRAUMA SAID ONE SILICON VALLEY EXECUTIVE WHO KNOWS SOME OF THE DEPARTED EXECUTIVES PETER VAN CUYLENBURG NEXT'S PRESIDENT DOWNPLAYED THE SIGNIFICANCE OF THE MANAGEMENT DEPARTURES AND SAID THE COMPANY IS PERFORMING SOLIDLY WHAT'S GOING ON HERE IS A POSITIVE PROCESS OF RENEWAL HE SAID INDEED MR VAN CUYLENBURG A BRITISH VETERAN OF THE TELECOMMUNICATIONS AND COMPUTER INDUSTRIES WHO BECAME NEXT'S PRESIDENT IN MARCH SAID SOME OF THE DEPARTURES WERE THE NATURAL OUTGROWTH OF HIS ARRIVAL AT THE COMPANY I'VE PUT PRESSURE ON VARIOUS SEGMENTS OF OUR BUSINESS AND PEOPLE REACT IN DIFFERENT WAYS HE SAID SOME WELCOME THE CHALLENGES SOME FIND IT IS TOO MUCH PRESSURE AND DECIDE TO MOVE ON AND SOME DON'T LIVE UP TO THE NEW EXPECTATIONS SO WE DECIDE THEY'LL MOVE ON HE ADDED THAT MR PAGE LEFT ON HIS OWN AND SUGGESTED THAT MR PAGE MIGHT EVENTUALLY REJOIN THE COMPANY WE DID NOT WANT TO SEE RICH GO MR VAN CUYLENBURG SAID MR VAN CUYLENBURG ALSO TOOK PAINS TO EMPHASIZE THAT NEXT IS PERFORMING UP TO ITS EXPECTATIONS AND MORE IMPORTANTLY UP TO THE EXPECTATIONS OF CANON INC NEXT'S BIGGEST SHAREHOLDER AND A VITAL CONTRIBUTOR OF CAPITAL IN MAY CANON AGREED TO INVEST AN ADDITIONAL 55 MILLION IN NEXT BASED ON A BUSINESS PLAN CONTAINING SPECIFIC PERFORMANCE TARGETS SPELLED OUT BY MR VAN CUYLENBURG RECENTLY NEWS REPORTS HAVE SUGGESTED THAT CANON IS DISPLEASED WITH NEXT'S PERFORMANCE BUT MR VAN CUYLENBURG SAID THAT IS TOTALLY UNFOUNDED AND COMPLETELY UNTRUE WHILE HE WOULDN'T GIVE SPECIFIC FIGURES HE SAID NEXT IS WITHIN 5 OF MEETING THE REVENUE TARGET CONTAINED IN THE BUSINESS PLAN AND HAS MET OR EXCEEDED EVERY OTHER KEY FINANCIAL PARAMETER SUCH AS GROSS MARGINS INVENTORY AND EXPENSES CANON HAS EVERY REASON TO BE DELIGHTED WITH OUR PERFORMANCE MR VAN CUYLENBURG SAID NONETHELESS THE DEPARTURE OF MR PAGE AND OTHER TOP EXECUTIVES HAS STIRRED UP MORE SKEPTICISM ABOUT MR JOBS'S ABILITY TO MAKE NEXT A SUCCESS DESPITE THE ALMOST MYTHICAL STATUS AS HIGHTECH PIONEER THAT MR JOBS EARNED BY COFOUNDING APPLE IN A GARAGE NEXT'S SALES HAVE IN THE PAST FALLEN SHORT OF HIS PROJECTIONS IT HAD REVENUE OF 127 MILLION IN 1991 IT HAD A STATED GOAL OF 200 MILLION THAT YEAR IT HAS HAD ITS SHARE OF PRODUCT DELAYS AND OUTRIGHT PRODUCT FLOPS MORE RECENT VERSIONS OF ITS MACHINES HAVE BEEN WELLRECEIVED BUT ITS SOFTWARE HAS BEEN SLOW TO CATCH ON WITH PERSONAL COMPUTER MAKERS AND THERE ARE RECURRING RUMORS THAT NEXT WILL SOON ANNOUNCE LAYOFFS AND MAY EVEN BE CONTEMPLATING CLOSING ITS COSTLY STATEOFTHE ART MANUFACTURING PLANT ONE OF MR JOBS'S PRIDE AND JOYS STEVE'S GOT HIS WORK CUT OUT FOR HIM SAID ONE ACQUAINTANCE 9301110047 930111 BUSINESS BRIEF ADOBE SYSTEMS INC FISCAL 4TH PERIOD WRITEOFF OF 6 MILLION IS EXPECTED ADOBE SYSTEMS INC MOUNTAIN VIEW CALIF SAID IT EXPECTS A 6 MILLION WRITEOFF IN ITS FISCAL FOURTH QUARTER ENDED NOV 30 RELATED TO A DECISION TO DROP PLANS TO MOVE FACILITIES INTO A REDEVELOPMENT PROJECT IN EAST PALO ALTO CALIF THE MAKER OF PUBLISHING SOFTWARE SAID THE WRITEOFF IS EQUIVALENT TO 16 CENTS A SHARE ANALYSTS HAD ANTICIPATED EARNINGS FOR THE PERIOD OF ABOUT 52 CENTS A SHARE FOR THE NINE MONTHS ENDED AUG 28 ADOBE HAD NET INCOME OF 352 MILLION OR 150 ON REVENUE OF 1952 MILLION ADOBE WAS AN INVESTOR IN THE UNIVERSITY CENTRE PROJECT AS WELL AS AN EXPECTED TENANT UNIVERSITY CENTRE WAS MEANT TO BE AN URBAN REDEVELOPMENT PROJECT IN A TROUBLED AREA BUT THE UNIVERSITY CENTRE HAS HAD CONSTRUCTION DELAYS PERMIT PROBLEMS AND FINANCING WOES ADOBE SAID IT IS NO LONGER FEASIBLE FOR THE UNIVERSITY CENTRE TO MEET ADOBE'S FACILITY NEEDS 9301110046 930111 INTERNATIONAL BRIEF NIPPON TELEGRAPH & TELEPHONE CORP JAPAN FIRM WILL MAINTAIN DIVIDENDS DESPITE SLOWDOWN NIPPON TELEGRAPH & TELEPHONE CORP THE JAPANESE TELECOMMUNICATIONS GIANT SAID IT INTENDS TO GO ON PAYING DIVIDENDS TO SHAREHOLDERS NO MATTER HOW BAD THE ECONOMIC SLOWDOWN BECOMES WE CAN CAUSE NO MORE TROUBLES FOR OUR SHAREHOLDERS WE WILL MAINTAIN THE CURRENT LEVEL OF DIVIDEND BY WHATEVER MEANS EVEN BY WITHDRAWING RESERVE FUNDS NTT CHIEF MASASHI KOJIMA SAID IN AN INTERVIEW WITH THE KYODO NEWS AGENCY NTT IS CURRENTLY PAYING A DIVIDEND OF 5000 YEN 3995 PER SHARE MANY OF NTT'S 17 MILLION SHAREHOLDERS WERE CAUGHT BY THE SHARP DROP IN THE VALUE OF THE STOCK NOW LINGERING AT AROUND 560000 YEN 4475 DOWN FROM A HIGH OF AROUND THREE MILLION YEN IN THE LATE 1980S MR KOJIMA SAID THE COMPANY EXPECTS PRETAX PROFIT FOR THE CURRENT FISCAL YEAR ENDING MARCH 31 TO BE ABOUT 230 BILLION YEN 184 BILLION LESS THAN HALF OF 4847 BILLION YEN POSTED THREE YEARS AGO 9301110045 930111 BUSINESS BRIEF MCDONNELL DOUGLAS CORP FIRM GETS NAVY MISSILE JOB VALUED AT 2016 MILLION MCDONNELL DOUGLAS CORP SAID IT RECEIVED A 2016 MILLION CONTRACT TO BUILD NAVY TOMAHAWK SEALAUNCHED CRUISE MISSILES AT ITS AEROSPACE UNIT'S MISSILEPRODUCTION FACILITY IN TITUSVILLE FLA THE AEROSPACE COMPANY SAID THE CONTRACT IS FOR 120 MISSILES OR 60 OF TOMAHAWKS BEING BOUGHT IN FISCAL 1993 THE PACT ALSO CALLS FOR THE REMANUFACTURING OF 120 MISSILES BY MCDONNELL DOUGLAS AT THE FLORIDA FACILITY THE COMPANY SAID THAT ALL OF THE MISSILES PRODUCED UNDER THE LATEST CONTRACT WILL BE IMPROVED THE UPGRADING WILL INCLUDE ADDITION OF GLOBALPOSITIONINGSYSTEMAIDED NAVIGATION AND TIMEOFARRIVAL CONTROL INCREASED COMPUTING POWER IN THE GUIDANCE SYSTEM AND IMPROVEMENTS IN PROPULSION AND IN WARHEADS MCDONNELL AND GENERAL MOTORS CORP'S HUGHES MISSILE SYSTEMS CO BUILD THE TOMAHAWK MISSILES AND COMPETE FOR A SHARE OF TOTAL MISSILE PRODUCTION DEPOT AND REMANUFACTURING WORK EACH YEAR 9301110044 930111 REVIEW & OUTLOOK EDITORIAL MAKING MONEY ON MAO A COUPLE OF REPORTS OUT OF CHINA HAVE SET US TO THINKING ABOUT THE FUTURE OF THE MIDDLE KINGDOM IN MAO'S HOMETOWN OF SHAOSHAN ACCORDING TO THE ASSOCIATED PRESS VILLAGERS ARE GOING ALL OUT ON THE CAPITALIST ROAD TO CREATE A CENTER OF MAONESS TO ATTRACT TOURISTS HUNDREDS OF PRIVATE SIDEWALK STALLS ALREADY SELL THE INFRASTRUCTURE OF MAOMORABILIA SUCH AS PENS AND LIGHTERS AND CALENDARS PLANS ARE IN THE WORKS FOR A MAO STATUE SHAOSAN CAN PROBABLY GET ONE CHEAP FROM ANY OF THE NUMEROUS CITIES WHO HAVE TORN THEIRS DOWN AND A MAO LIBRARY WITH MAO'S 100TH BIRTHDAY LATER THIS YEAR VILLAGERS FIGURE THE BIG GUY IS THE IDEAL CAPITALIST TOOL TIANANMEN SQUARE THE SOUL OF COMMUNIST CHINA HAS ALSO TURNED INTO A COMMERCIAL BAZAAR WITH EVERYTHING FROM COMMEMORATIVE SPOONS TO PHOTOS TO FAST FOOD FOR SALE ONE CAN EVEN BUY THE RIGHT TO STAND WHERE MAO DID IN 1949 WHEN HE PROCLAIMED THE CHINESE PEOPLE HAVE STOOD UP THE AREA BEHIND THE GREAT ECONOMIST'S MAUSOLEUM ITSELF IS A BLUR OF SOUVENIR STANDS ALBEIT MOSTLY STATEOWNED THE SECOND REPORT WAS OF THE COMPLETION OF NEW UNDERPASSES LEADING TO TIANANMEN SQUARE MAKING THE AREA EASIER TO CLOSE OFF IN CASE OF SAY PRODEMOCRACY DEMONSTRATIONS OR OTHER FORMS OF NASTY PEACEFUL EVOLUTION IN OTHER WORDS THE TWO ACCOUNTS TELL US BEIJING'S LEADERS ARE WILLING TO MAKE A CAPITALIST BUCK OFF THE ICONS OF CHINESE COMMUNISM BUT THAT DOESN'T MEAN THEY ARE ANY LESS PROTECTIVE OF THEIR POWER THAN THEIR PREDECESSORS THIS OF COURSE WAS ALSO THE MESSAGE OF THE 14TH PARTY CONGRESS LAST YEAR LOTS OF BLATHERING ABOUT SOCIALIST MARKET REFORM AND A RESOUNDING SILENCE ABOUT POLITICAL LIBERALIZATION BUT WE WONDER WHEN THE ECONOMIC UNDERPINNINGS OF COMMUNISM ARE SO SHREDDED AND TORN THAT MAO HIMSELF IS JUST ANOTHER PROFIT CENTER HOW LONG CAN THE POLITICAL LOGIC OF THE PARTY SURVIVE 9301110043 930111 CREDIT MARKETS CORPORATE TREASURERS BET RATES WILL RISE BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CORPORATE TREASURERS MADE A BET LAST WEEK THAT LONGTERM BOND YIELDS ARE LIKELY TO RISE IN THE NEXT COUPLE OF MONTHS AND A NUMBER OF ECONOMISTS AND MONEY MANAGERS AGREE COMPANIES RANGING FROM TIME WARNER INC AND RJR NABISCO INC TO PHILLIPS PETROLEUM CO AND DU PONT CO FLOODED THE CORPORATE MARKET WITH MORE THAN 12 BILLION OF NEW NOTES AND BONDS MUCH OF IT IN THE FORM OF NOTES MATURING IN 20 YEARS OR MORE AND DESTINED TO REPLACE OLDER HIGHERYIELDING DEBT THIS WEEK COULD BRING ANOTHER WAVE OF NEW OFFERINGS IN THE CORPORATE MARKET IF YIELDS REMAIN STEADY UNDERWRITERS SAY AND SOME MUNICIPAL ISSUERS MIGHT TAKE THE PLUNGE AS WELL IF YIELDS DROP A BIT MARKET VETERANS BELIEVE THE TREND FOR THE NEXT COUPLE OF MONTHS IS FOR LONGTERM YIELDS TO BE STEADY OR GO SLIGHTLY HIGHER BUT THEY EXPECT TO SEE YIELDS DECLINE ON TWOYEAR TO FIVEYEAR TREASURY NOTES WHICH LOOK CHEAP TO MANY RIGHT NOW THE YIELD ON THE 30YEAR TREASURY BOND WILL RISE A BIT MORE SAYS DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC YOU COULD EASILY SEE 775 OR THEREABOUTS UNTIL THE MARKET CALMS WE THINK THE 30YEAR TREASURY BOND YIELD IS NOW IN THE MIDDLE OF A CHURNING RANGE SAYS PAUL BOLTZ CHIEF FINANCIAL ECONOMIST AT T ROWE PRICE & ASSOCIATES A MUTUAL FUND FIRM WITH A CENTER OF GRAVITY AROUND 75 TOPSYTURVY MOVES IN THE TREASURY MARKET PUSHED THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND UP NEARLY A POINT EARLY LAST WEEK AND BACK DOWN MORE THAN A POINT LATE IN THE WEEK LEAVING THE YIELD AROUND 750 HIGHER THAN WHERE IT STARTED NOTE AND BOND PRICES MOVE IN THE OPPOSITE DIRECTION OF YIELDS MARKET ANALYSTS SAY THAT LIGHT VOLUME AND EAGER MONEY MANAGERS WITH PILES OF CASH TO INVEST HELPED BOOST PRICES EARLY IN THE WEEK BUT REPORTS SUGGESTING NEW STRENGTH IN THE ECONOMY AND A CRUSHING LOAD OF NEW CORPORATE BONDS PUSHED DOWN PRICES BY THE WEEK'S END MONEY MANAGERS SAY THAT THESE KINDS OF SWINGS WHICH WERE TYPICAL LAST YEAR ARE LIKELY TO CONTINUE IN THE NEXT COUPLE OF MONTHS BUT MAY OCCUR LESS OFTEN AFTERWARD AS INVESTORS BECOME ACCUSTOMED TO A SLOWLY GROWING ECONOMY WITH LOW INFLATION OF COURSE THE OUTLOOK HINGES ON HOW PRESIDENTELECT CLINTON CHOOSES TO DEAL WITH THE CHALLENGES OF A SLUGGISH ECONOMY AND A GROWING FEDERAL DEFICIT THE ISSUE FOR THE BOND MARKET IS WHAT'S HAPPENING WITH INFLATIONARY EXPECTATIONS AS OPPOSED TO THE ACTUAL RATE OF INFLATION SAYS MR FINE THE ECONOMY IS BETTER BUT IT IS NOT STRONG AND THE ACTUAL RATE OF INFLATION ISN'T LIKELY TO INCREASE THIS YEAR BUT BOND INVESTORS MIGHT BEGIN TO THINK OTHERWISE AND FEAR HIGHER INFLATION THE INAUGURATION OF MR CLINTON FEARS OF A SHORTTERM SPENDING PACKAGE AND A MORE ACTIVIST CONGRESS WOULD TEND TO PREVENT ANY FURTHER IMPROVEMENT IN INFLATIONARY EXPECTATIONS HE SAYS THOUGH THE BOND MARKETS SEEMED TO REACT LITTLE TO NEWS THAT MR CLINTON MIGHT BE STARTING TO BACK OFF FROM HIS CAMPAIGN PLEDGE TO CUT THE FEDERAL BUDGET DEFICIT IN HALF SAYS MR FINE THIS MAY BECOME A BIGGER FACTOR IN THE COMING MONTHS THE PLEDGE MAY HAVE BEEN A LITTLE UNREALISTIC MR FINE SAYS BUT NEWS THAT MR CLINTON MIGHT BE BACKING AWAY FROM IT PROBABLY DID BOTHER PEOPLE IN THE MARKET THE FALL IN LONGTERM YIELDS OVER THE PAST FEW MONTHS FROM MORE THAN 775 TO BELOW 750 SUGGESTS THAT BOND INVESTORS HAVE BECOME RATHER COMPLACENT ABOUT THE NEXT PRESIDENT THOUGH MR CLINTON HAS SAID NOTHING VERY SPECIFIC SINCE ELECTION DAY ABOUT HOW HE WOULD DEAL WITH SLUGGISH ECONOMIC GROWTH AND THE FEDERAL BUDGET DEFICIT INVESTORS' FEARS OF A HUGE SHORTTERM SPENDING PACKAGE HAVE LESSENED SUCH A SPENDING PACKAGE COULD ENLARGE THE DEFICIT AND SPARK HIGHER INFLATION BOTH OF WHICH REDUCE THE VALUE OF BONDS BOND INVESTORS BECAME MORE CONVINCED THAT NEW SIGNS OF ECONOMIC STRENGTH IN THE FOURTH QUARTER MEAN THAT ANY SPENDING PACKAGE WOULD BE MODEST EVEN THOUGH MR CLINTON HASN'T SPECIFICALLY SAID SO AND THERE IS THE RUB SAY ECONOMISTS IN THE SHORT TERM THE BOND MARKETS ARE GOING TO CHURN A LOT WITH ALL THE UNCERTAINTY OF A NEW ADMINISTRATION SAYS T ROWE PRICE'S MR BOLTZ OBVIOUSLY PRESIDENTELECT CLINTON IS TRYING TO PRESENT A MODERATE CENTRIST VIEW TO WALL STREET AND THAT HAS BEEN REASSURING HE ADDS BUT THAT DOESN'T MEAN INTEREST RATES CAN MEANDER DOWN AIMLESSLY ACCORDING TO MR BOLTZ THERE COULD BE MORE WEEKS LIKE LAST WEEK FROM TIME TO TIME UNTIL A NEW TREND EMERGES LATER THIS YEAR THE CLINTON TEAM HAS SAID VERY LITTLE ABOUT ECONOMIC POLICYMAKING AND SOME OF THE COMFORT WITH THE NEW ADMINISTRATION HAS BEEN WISHFUL THINKING SAYS BRAD TANK A GOVERNMENT FUND MANAGER AT STRONG/CORNELIUSON CAPITAL MANAGEMENT INC MILWAUKEE WE'VE HAD VERY LITTLE DIRECTION FROM THE CLINTON PEOPLE HE OBSERVES IT'S LARGELY BEEN FROM PARTICIPANTS IN THE BOND MARKET THAT WE'VE HEARD THAT THE GOOD NEWS FOR THE ECONOMY MEANS LESS DANGER OF A SHORTTERM GOVERNMENTSPENDING BINGE MR TANK SAYS DECLINING INTEREST RATES ABROAD AND SLUGGISH ECONOMIC GROWTH IN THE US WITH LOW INFLATION COULD BOLSTER TREASURY PRICES EVEN AS THE MARKET DEALS WITH THE UNCERTAINTIES OF THE NEW ADMINISTRATION WITH THE DOLLAR GAINING STRENGTH THE US BOND MARKETS COULD BE MORE ATTRACTIVE TO FOREIGN INVESTORS IN THE NEXT FEW MONTHS BUT YIELDS FOR TREASURY NOTES MATURING IN TWO TO FIVE YEARS COULD DROP IN COMING MONTHS AS BANKS RESUME THEIR PURCHASES OF THESE SECURITIES SAYS JIM SOMERS A PORTFOLIO MANAGER IN RADNOR PA YIELDS FOR NOTES MATURING IN TWO TO FIVE YEARS WILL DROP IN A MAJOR WAY HE SAYS BECAUSE OF THE INCREASED DEMAND MR SOMERS SAYS THAT BANKS EASED UP ON THEIR BUYING TOWARD THE END OF LAST YEAR BECAUSE OF SIGNS THAT LOAN DEMAND MIGHT PICK UP AND BECAUSE THEY WANTED TO CLOSE THEIR BOOKS FOR THE YEAR BUT WITH YIELDS FOR TWOYEAR NOTES RISING MORE THAN 1/2 POINT IN THE LAST FEW MONTHS SAYS MR SOMERS THEY NOW ARE TOO CHEAP TO PASS UP SOME ISSUERS IN THE MUNICIPAL MARKET ARE SO SURE THAT YIELDS WON'T GO MUCH LOWER THAT THEY'VE GIVEN UP THE CALL RIGHTS ON BONDS THEY'VE SOLD RECENTLY IN RETURN FOR SLIGHTLY LOWER YIELDS THE SALE OF MUNICIPAL CALL RIGHTS A NEW DERIVATIVE THAT IS GAINING FAVOR IN THE MUNICIPAL BOND MARKET AMOUNTS TO A BET BY STATES AND TOWNS THAT YIELDS WON'T GO MUCH LOWER SAYS JEFF PENNEY VICE PRESIDENT OF FINANCIAL PRODUCTS IN THE PUBLIC FINANCE DEPARTMENT AT FIRST BOSTON CORP ON FRIDAY FOR EXAMPLE RIVERSIDE COUNTY CALIF SOLD THE CALL RIGHTS FOR 391 MILLION OF A 150 MILLION OFFERING OF 20YEAR BONDS MAKING IT THE THIRD ISSUER TO OFFER THE DERIVATIVE IN THE LAST SIX WEEKS ACCORDING TO FIRST BOSTON WHICH STRUCTURED ALL THREE OFFERINGS THE 20YEAR BONDS WERE SOLD AT A YIELD OF 650 IN A TRADITIONAL OFFERING OF CALLABLE BONDS THE ISSUER RETAINS THE RIGHT TO CALL ITS BONDS BACK FROM INVESTORS BEFORE THEY MATURE OFTEN IN 10 YEARS WHEN YIELDS DECLINE MUNICIPALITIES MAY CALL THE DEBT AND REPLACE IT WITH LOWERYIELDING DEBT THUS REDUCING THEIR FINANCING COSTS BUT IN A SALE OF CALL RIGHTS THE ISSUER GIVES UP THE CALL RIGHT IN RETURN FOR A LOWER YIELD INVESTORS WHO BUY THE CALLS GAIN THE RIGHT TO BUY THE BONDS FOR THEIR PORTFOLIOS ON OR AFTER THE CALL DATE IN THE CASE OF RIVERSIDE THE YIELD WAS 009 PERCENTAGE POINT LOWER THAN THAT OF COMPARABLE 20YEAR NONCALLABLE MUNICIPAL BONDS SAYS FIRST BOSTON PRICES OF TREASURY NOTES AND BONDS ENDED MIXED FRIDAY WITH SHORT AND INTERMEDIATETERM SECURITIES POSTING GAINS OF UP TO 3/8 POINT WHILE THE 30YEAR BOND DROPPED 3/8 POINT THE END RESULT WAS WHAT IS KNOWN AS A STEEPER YIELD CURVE WHICH OCCURS WHEN THE GAP BETWEEN LONGTERM AND SHORTTERM YIELDS WIDENS LATE FRIDAY THE SPREAD BETWEEN THE YIELD ON THE TWOYEAR NOTE AND 30YEAR BOND STOOD AT 299 PERCENTAGE POINTS ITS WIDEST POINT SINCE MIDNOVEMBER AND UP SHARPLY FROM 283 PERCENTAGE POINTS AT THE END OF TRADING THURSDAY MEANWHILE THE MUNICIPAL BOND MARKET STARTED GEARING UP FOR TOMORROW'S SCHEDULED OFFERING OF 16 BILLION IN BONDS BY THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY THE AGENCY HAD TRIED TO SELL THE BONDS IN SEPTEMBER BUT PULLED THE ISSUE AFTER IT HAD BEEN PRICED DUE TO A SLIDE IN MUNICIPAL BOND PRICES SMITH BARNEY HARRIS UPHAM & CO WILL BE THE LEAD UNDERWRITER A PORTION OF THE OFFERING IS LIKELY TO COME IN THE FORM OF DERIVATIVE SECURITIES THE ISSUE POTENTIALLY ONE OF THE LARGEST EVER IN THE MUNICIPAL BOND MARKET WILL BE A BENCHMARK FOR YIELD LEVELS AND DEMAND IN THE NEAR FUTURE SAY ANALYSTS 9301110042 930111 WHAT'S NEWS BUSINESS AND FINANCE JOB GROWTH REMAINED SLUGGISH LAST MONTH AS THE UNEMPLOYMENT RATE REMAINED AT NOVEMBER'S 73 RATE THE SLUGGISHNESS CAME DESPITE RECENT PICKUPS IN CONSUMER CONFIDENCE RETAIL SALES AND MANUFACTURING BUT SOME ANALYSTS SAID THE ACTIVITY LEVEL MAY BE ENOUGH TO REDUCE THE PRESSURE ON CLINTON TO EXPEDITE A MAJOR ECONOMIC STIMULUS PACKAGE STOCK PRICES ENDED LOWER ON THE JOBS DATA AND ON MIDDLE EAST TENSIONS THE DOW JONES INDUSTRIALS FELL 1729 POINTS TO 325167 BONDS FINISHED MIXED AND THE DOLLAR CLOSED HIGHER CLINTON'S TAXCUT PROMISE FOR THE MIDDLE CLASS MAY HAVE TO BE BROKEN SAID THE TWO TOP CONGRESSIONAL DEMOCRATS SEPARATELY CLINTON IS EXPECTED TO GIVE ECONOMIC POSTS TO SEVERAL WELLREGARDED INDIVIDUALS IN THE FIELD THE BIG THREE'S LEADERS HAVE PUT ON AN UNPRECEDENTED DISPLAY OF UNITY THAT COULD TRANSLATE SOON INTO A RENEWED ASSAULT ON JAPANESE AUTO MAKERS AND FEDERAL REGULATORS GM EXECUTIVES BELIEVE THAT THE COMPANY'S FINANCIAL BLEEDING HAS SLOWED SIGNIFICANTLY IN RECENT WEEKS AND THAT ITS US AUTO OPERATIONS ARE IMPROVING FASTER THAN ANTICIPATED TANDY UNVEILED A RESTRUCTURING THAT INVOLVES ADDING NEW SUPERSTORES CLOSING SOME SMALLER ELECTRONICS STORES AND SPINNING OFF ITS MANUFACTURING OPERATIONS INTO A NEW ENTITY PAINEWEBBER HAS BEEN ORDERED TO PAY 97 MILLION TO AN INVESTOR OVER A SHORT SALE OF WALMART SHARES THE INVESTOR IS THE NEPHEW OF THE RETAIL CHAIN'S FOUNDER SAM WALTON LEHMAN BROTHERS' JOHN GRIFF QUIT AS HEAD OF THE FIRM'S DOMESTIC DEBT SYNDICATE AFTER THE COMPANY MOVED TO DILUTE HIS AUTHORITY PEOPLE FAMILIAR WITH THE FIRM SAID GRIFF LED A DRIVE TO INCREASE LEHMAN'S BOND BUSINESS THE AILING HOUSING INDUSTRY IS POISED FOR ITS BEST PERFORMANCE IN FIVE YEARS WITH BUILDERS AND BROKERS REPORTING SURPRISINGLY HIGH LEVELS OF HOMEBUYING ACTIVITY AROUND THE US VISA WILL BECOME ATLANTA'S OFFICIAL CREDIT CARD UNDER A SPONSORSHIP DEAL TO BE UNVEILED TODAY VISA IS ONE OF THE WORLDWIDE SPONSORS OF THE OLYMPICS WHICH WILL BE HELD IN ATLANTA IN 1996 OLYMPIA & YORK'S CREDITORS ARE EXPECTED THIS WEEK TO BEGIN DISMANTLING THE INSOLVENT REALESTATE CONCERN AS PART OF A RESTRUCTURING PLAN THAT FREES THE REICHMANN FAMILY FROM FURTHER LIABILITY FOR THE COMPANY'S DEBT JAPAN'S PIONEER ELECTRONIC ESSENTIALLY DISMISSED 35 MANAGERS THE MOVE MARKS A BREAK WITH THE EFFORT BY THE NATION'S BLUECHIP COMPANIES TO KEEP UP THE APPEARANCE OF THEIR TRADITION OF LIFETIME EMPLOYMENT NEXT'S RICHARD PAGE RESIGNED AS THE COMPUTER COMPANY'S TOP HARDWARE EXECUTIVE HE WAS A COFOUNDER ADVANCED MICRO POSTED A 35 DROP IN FOURTHQUARTER NET TO 696 MILLION ALTHOUGH THE SEMICONDUCTOR MAKER'S PRETAX OPERATING PROFIT WAS UP 16 GENERAL PUBLIC UTILITIES AND ITS SHAREHOLDERS WILL HAVE TO PAY MUCH OF THE COST OF CLOSING THE COMPANY'S CRIPPLED THREE MILE ISLAND NUCLEAR REACTOR ACCORDING TO A PRELIMINARY DECISION BY PENNSYLVANIA REGULATORS TOKYO STOCKS CONTINUED TO FALL WITH THE NIKKEI INDEX LOSING 14629 TO 1663469 ITS LOWEST CLOSING LEVEL SINCE NOV 17 LONDON SHARES DECLINED BONDS LEHMAN BROTHERS TREASURY INDEX 467266 OFF 735 COMMODITIES OIL 1888 A BARREL OFF 7 CENTS DOW JONES FUTURES INDEX 12385 UP 016 SPOT INDEX 12215 UP 003 DOLLAR 12535 YEN UP 020 16465 MARKS UP 00095 9301110041 930111 BUSINESS BRIEF WOODWARD'S LTD CANADIAN RETAILING CHAIN TO DISMISS 1200 WORKERS WOODWARD'S LTD SAID IT PLANS TO DISMISS 1200 OF ITS MORE THAN 5500 EMPLOYEES OVER THE NEXT THREE MONTHS AS IT SCALES BACK ITS RETAILING OPERATIONS MARC CHOUINARD PRESIDENT OF THE COMPANY SAID THAT THE DISMISSALS RESULT FROM WOODWARD'S DECISION TO ELIMINATE UNPROFITABLE BUSINESSES INCLUDING RETAILING OF SUCH ITEMS AS FURNITURE ELECTRONICS CARPETS AND SPORTING GOODS LAST MONTH THE TROUBLED RETAILING CHAIN FILED FOR PROTECTION FROM CREDITORS UNDER THE COMPANIES CREDITORS ARRANGEMENT ACT A STATUTE ROUGHLY EQUIVALENT TO CHAPTER 11 OF THE US BANKRUPTCY CODE WOODWARD'S SAID IT PLANS TO BECOME A SMALLER MORE FOCUSED AND MORE PROFITABLE RETAILER SPECIALIZING IN FASHIONS ACCESSORIES AND SOME HOME FURNISHINGS OFFICIALS OF WOODWARD'S BASED IN VANCOUVER BRITISH COLUMBIA COULDN'T BE REACHED FOR COMMENT ON THE ESTIMATED COST OF THE DISMISSALS 9301110040 930111 TOTAL SA AGREES TO SELL ITS 53 OF TOTAL CANADA A WALL STREET JOURNAL NEWS ROUNDUP TOTAL SA OF FRANCE SAID IT AGREED TO SELL ITS 53 STAKE IN ITS CANADIAN OIL AND GAS EXPLORATION AND DEVELOPMENT SUBSIDIARY TO A GROUP OF UNDERWRITERS FOR TOTAL PROCEEDS OF ABOUT 1832 MILLION CANADIAN DOLLARS US1429 MILLION TOTAL CANADA OIL & GAS LTD SAID THE SHARES WILL BE RESOLD TO THE PUBLIC BY THE UNDERWRITERS HEADED BY NESBITT THOMSON INC OF TORONTO THE SALE WHICH IS EXPECTED TO BE COMPLETED BY FEB 1 CAME AS A SURPRISE TO TOTAL CANADA EXECUTIVES THEY SAID THEY WERE INFORMED ONLY FRIDAY MORNING OF THE DECISION BY TOTAL SA TO ACCEPT THE UNDERWRITING GROUP'S OFFER TO PAY C975 A SHARE FOR THE 188 MILLIONSHARE BLOCK DONALD GARDNER VICE PRESIDENT FINANCE OF TOTAL CANADA SAID THE CANADIAN COMPANY HASN'T BEEN GIVEN A SPECIFIC REASON FOR THE SALE BUT TOTAL HAS A VERY LARGE CAPITAL SPENDING PROGRAM UNDER WAY TO INCREASE THEIR OIL AND GAS RESERVES AROUND THE WORLD MR GARDNER SAID GIVEN THEIR NEED FOR FUNDS TO FINANCE THIS THEY MAY HAVE FOUND THIS AN ATTRACTIVE OFFER TOTAL SA OFFICIALS COULDN'T BE REACHED FOR COMMENT TOTAL CANADA IS A CALGARYBASED OIL AND NATURAL GAS EXPLORATION AND PRODUCTION CONCERN TOTAL SA WHICH ALSO OWNS OIL AND GAS REFINING TRANSPORTATION AND DISTRIBUTION ASSETS IS BASED IN PUTEAUX FRANCE 9301110039 930111 BUSINESS BRIEFS LORAL CORP'S COMMAND AND CONTROL SYSTEMS DIVISION WAS AWARDED AN ADDITIONAL 50 MILLION CONTRACT FROM THE AIR FORCE FOR EQUIPMENT TO UPGRADE LAUNCHCONTROL CENTERS FOR US BALLISTIC MISSILE SITES UNOCAL CORP SIGNED A PETROLEUMEXPLORATION AGREEMENT BETWEEN UNOCAL TRINIDAD LTD AND THE REPUBLIC OF TRINIDAD AND TOBAGO FOR A FRONTIER BLOCK 45 MILES OFF THE EAST COAST OF TRINIDAD MCCAW CELLULAR COMMUNICATIONS INC AND ASSOCIATED COMMUNICATIONS CORP COMPLETED THEIR PLAN TO FORM A 5050 JOINT VENTURE THE TWO COMPANIES ALSO COMPLETED A TRANSACTION IN WHICH ASSOCIATED PAID 825 MILLION FOR MCCAW'S INTERESTS IN ALBANY ROCHESTER AND GLEN FALLS NY ELECTROCOM AUTOMATION INC RECEIVED A CONTRACT FROM THE US POSTAL SERVICE FOR AS MUCH AS 715 MILLION OF UPGRADES TO EXISTING BAR CODE SORTER SYSTEMS ICF INTERNATIONAL INC'S KAISER ENGINEERS HANFORD CO UNIT RECEIVED A THREEYEAR 300 MILLION CONTRACT FROM THE US DEPARTMENT OF ENERGY 9301110038 930111 BUSINESS BRIEF LYNCH CORP FIRM MAY SELL UNIT TO PUBLIC IN INITIAL STOCK OFFERING LYNCH CORP A SERVICE COMMUNICATIONS AND MANUFACTURING COMPANY SAID IT'S EXPLORING THE SALE OF ITS 90OWNED LYNCH SERVICES CORP UNIT TO THE PUBLIC IN AN INITIAL STOCK OFFERING LYNCH OF GREENWICH CONN IS ABOUT 39OWNED BY NEW YORK INVESTMENT ADVISER MARIO GABELLI AND ONE OF HIS INVESTMENT COMPANIES MR GABELLI ALSO IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY DANIEL E MILLER GENERAL COUNSEL SAID THE POTENTIAL OFFERING IS IN PRELIMINARY STAGES AND THE COMPANY HASN'T DECIDED WHICH SERVICES MIGHT BE SOLD TO THE PUBLIC WITH THE ROBUST INITIAL PUBLIC OFFERING MARKET HE ADDED IT APPEARS TO BE THE RIGHT OPPORTUNITY FOR THE OFFERING THROUGH ITS SUBSIDIARY MORGAN DRIVE AWAY INC LYNCH SERVICES PROVIDES MOVING SERVICES FOR THE MOBILE HOME AND RECREATION VEHICLE INDUSTRIES 9301110037 930111 MERRILL LYNCH NAMED AS LEAD UNDERWRITER FOR CHINESE OFFERING SPECIAL TO THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO HAS BECOME THE FIRST NONCHINESE SECURITIES FIRM TO BE NAMED LEAD UNDERWRITER FOR A CHINABASED COMPANY SHANGHAI PETROCHEMICAL COMPLEX LAST WEEK APPOINTED MERRILL AS THE LEAD GLOBAL UNDERWRITER FOR ITS LISTING IN HONG KONG AND CHINA THE CHINESE GOVERNMENT HAS SAID IT EXPECTS THE SHANGHAI PETROCHEMICAL OFFERING TO COME TO MARKET BEFORE MIDYEAR INDICATIONS ARE THE OFFERING WILL SEEK TO RAISE ABOUT 400 MILLION TO 500 MILLION ACCORDING TO THE SOUTH CHINA MORNING POST WHICH FIRST REPORTED THE STORY THE AMOUNT TO BE RAISED IS EXPECTED TO BE THE LARGEST AMONG THE NINE CHINESE FIRMS HOPING TO LIST IN HONG KONG ALTHOUGH CHINA ESTABLISHED ITS OWN EXCHANGES IN SHANGHAI AND SHENZHEN ABOUT TWO YEARS AGO INCLUDING MARKETS TRADING CLASS B SHARES FOR FOREIGN INVESTORS AUTHORITIES ARE ALLOWING SOME COMPANIES TO LIST ABROAD AS AN EXPERIMENT IF THE HONG KONG LISTINGS PROVE SUCCESSFUL IT IS EXPECTED THAT MORE CHINESE COMPANIES WILL SEEK TO OFFER SHARES IN HONG KONG WHERE THE MARKET IS FAR MORE LIQUID THAN THE FLEDGLING MARKET FOR CLASS B SHARES IN SHANGHAI OR SHENZHEN 9301110035 930111 HARLEYSVILLE GROUP SAYS DECEMBER STORM WILL REDUCE EARNINGS HARLEYSVILLE PA INSURER HARLEYSVILLE GROUP INC SAID CLAIMS FROM THE MIDDECEMBER WINTER STORM WILL REDUCE ITS 1992 NET INCOME BY 23 MILLION OR ABOUT 18 CENTS A SHARE AFTER REINSURANCE AND OTHER ADJUSTMENTS THE COMPANY ALSO INCREASED ITS ESTIMATE FOR CHARGES RELATED TO HURRICANE ANDREW TO 38 MILLION OR 30 CENTS A SHARE FROM THE PREVIOUS ESTIMATE OF 3 MILLION OR 24 CENTS A SHARE HARLEYSVILLE SAID THAT THE HURRICANE RESULTED IN MORE CLAIMS THAN ORIGINALLY EXPECTED AND THAT CONSTRUCTION COSTS HAVE ESCALATED AS A RESULT OF THE LOSS ESTIMATES THE COMPANY SAID IT EXPECTS 1992 NET INCOME OF 265 MILLION TO 273 MILLION OR BETWEEN 211 AND 217 A SHARE INCLUDING ESTIMATED AFTERTAX REALIZED INVESTMENT GAINS OF 57 MILLION OR 45 CENTS A SHARE IN 1991 HARLEYSVILLE HAD NET INCOME OF 25 MILLION OR 205 A SHARE INCLUDING 300000 OR THREE CENTS A SHARE OF REALIZED INVESTMENT GAINS BRADFORD W MITCHELL CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY IS COMMITTED TO AGGRESSIVELY PURSUING OPERATING STRATEGIES TO MITIGATE THE EFFECTS OF THE DIFFICULT UNDERWRITING CLIMATE AND CONTINUED DOWNCYCLE ASKED FOR ELABORATION A SPOKESMAN SAID THE COMPANY IS REPRICING UNPROFITABLE LINES OF BUSINESS AND BEING MORE SELECTIVE IN PROVIDING COVERAGE TO AREAS THAT MAKE THE GREATEST CONTRIBUTION TO EARNINGS THE HOLDING COMPANY OWNS SIX PROPERTY AND CASUALTY INSURERS MARKETING ON THE ENTIRE EAST COAST 9301110034 930111 INTERNATIONAL PERU'S NEW ECONOMY MINISTER LIMA PERU PRESIDENT ALBERTO FUJIMORI NAMED FORMER INDUSTRY MINISTER JORGE CAMET AS HIS NEW ECONOMY MINISTER FOUR DAYS AFTER FORMER ECONOMY MINISTER CARLOS BOLONA RESIGNED OVER POLICY DIFFERENCES A PRESIDENTIAL SPOKESWOMAN SAID MR CAMET FORMER HEAD OF THE PERUVIAN BUSINESSMEN'S ASSOCIATION SERVED AS INDUSTRY MINISTER SINCE APRIL 9301110033 930111 WHO'S NEWS DU PONT CO DU PONT CO WILMINGTON DEL JOAN S GARDNER WAS NAMED VICE PRESIDENT MANAGEMENT RESOURCES EFFECTIVE IMMEDIATELY SHE SUCCEEDS JAMES I REILLY WHO WILL RETIRE THIS SPRING THE COMPANY SAID 9301110032 930111 HEALTHVEST INC WINS RULING IN LEGAL FIGHT WITH HOSPITAL CONCERN AUSTIN TEXAS HEALTHVEST INC SAID A FEDERAL BANKRUPTCY JUDGE GRANTED ITS REQUEST FOR A SUMMARY JUDGMENT EFFECTIVELY BLOCKING EFFORTS BY HEALTHCARE INTERNATIONAL INC TO GIVE MORE THAN 120 MILLION OF HEALTHVEST CLAIMS A LOWER PRIORITY THAN THOSE OF OTHER CREDITORS IN HEALTHCARE'S CHAPTER 11 BANKRUPTCY CASE IN A LAWSUIT AGAINST HEALTHVEST FILED IN FEDERAL BANKRUPTCY COURT HERE IN JULY 1992 HEALTHCARE SOUGHT TO SUBORDINATE HEALTHVEST'S CLAIMS ALLEGING THAT CERTAIN SALE AND LEASEBACKS AND MORTGAGE FINANCINGS PROVIDED BY HEALTHVEST FOR HEALTHCARE AMOUNTED TO PONZITYPE ARRANGEMENTS HEALTHCARE CLAIMED THAT HEALTHVEST A REAL ESTATE INVESTMENT TRUST HAD PURCHASED CERTAIN PROPERTIES FOR INFLATED PRICES AND RENTED THEM TO HEALTHCARE FOR EXCESSIVE RENTS AT A TIME WHEN BOTH COMPANIES WERE UNDER COMMON CONTROL HEALTHVEST SAID BANKRUPTCY JUDGE LARRY KELLY RULED THAT HEALTHCARE HAD FAILED TO PRESENT EVIDENCE OF CONDUCT THAT WOULD SUPPORT THE SUBORDINATION OF HEALTHVEST'S CLAIMS HEALTHCARE INTERNATIONAL A HOSPITALMANAGEMENT COMPANY THAT FILED FOR PROTECTION FROM CREDITORS IN NOVEMBER 1991 SAID IT WAS DISAPPOINTED WITH THE RULING BUT HADN'T DETERMINED WHETHER TO APPEAL BOTH COMPANIES ARE BASED IN AUSTIN 9301110031 930111 GERMANY WILL DROP ITS DEMANDS FOR PROOF ON MEDICINE IMPORTS SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE GERMAN GOVERNMENT HAS PROMISED TO STOP HAMPERING IMPORTS OF MEDICINES FROM OTHER EUROPEAN COMMUNITY COUNTRIES AFTER COMPLAINTS BY THE EC'S EXECUTIVE COMMISSION THAT THE OBSTACLES VIOLATED THE TRADE BLOC'S FOUNDING TREATY THE COMMISSION SAID THE GERMAN GOVERNMENT SAID IT WOULD CEASE DEMANDING THAT IMPORTERS OUTSIDE OFFICIAL NATIONAL DISTRIBUTION NETWORKS PROVIDE EXTRA PROOF THAT THE IMPORTED DRUGS WERE SAFE THE COMMISSION SAID THE GERMAN MEASURES INFRINGED EC RULES MEANT TO ASSURE THE FREE TRANSPORT OF GOODS THE EXTRA DEMANDS WERE UNNECESSARY SINCE THE PRODUCTS WERE ALREADY CLEARED FOR SALE IN GERMANY IT SAID SOCALLED PARALLEL IMPORTERS WHICH TAKE ADVANTAGE OF CROSSBORDER PRICE DIFFERENCES FOR THE SAME PRODUCTS WITHIN THE EC COULD RARELY FURNISH THE PAPERWORK GERMANY REQUIRED THE COMMISSION SAID 9301110030 930111 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CHEMICAL BANKING CORP 300 MILLION ISSUE OF SENIOR NOTES DUE JAN 15 1998 WAS PRICED AS 6 5/8 AT 9944 TO YIELD 6759 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 79 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BANKERS TRUST NEW YORK CORP 100 MILLION ISSUE OF SUBORDINATED NOTES DUE JAN 15 2003 WAS PRICED AS 7 1/4 AT 99613 TO YIELD 7305 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS BAYERISCHE HYPOBANK 100 MILLION ISSUE OF MEDIUMTERM DEPOSIT NOTES DUE JAN 28 1994 WAS PRICED AT PAR TO YIELD 375 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH MERRILL LYNCH & CO THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 18 BASIS POINTS ABOVE THE TREASURY ONEYEAR BOND EQUIVALENT YIELD THE NOTES ARE RATED DOUBLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P WORLD SAVINGS & LOAN ASSOCIATION 100 MILLION ISSUE OF MEDIUMTERM NOTES DUE JAN 15 1996 WAS PRICED AS 5 5/8 AT 99926 TO YIELD 5652 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 625 BASIS POINTS ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS WORLD SAVINGS & LOAN IS A UNIT OF GOLDEN WEST FINANCIAL CORP FEDERAL FARM CREDIT BANKS FUNDING CORP PRICED 350 MILLION OF THREEYEAR CONSOLIDATED SYSTEMWIDE BONDS AT PAR TO YIELD 508 95 BASIS POINTS ABOVE THREEYEAR TREASURY NOTES THE BONDS MATURE JAN 15 1996 AND WILL BE DATED AND DELIVERED JAN 15 1993 SECONDARY TRADING WILL BEGIN TODAY THE BONDS WILL BE AVAILABLE IN BOOKENTRY FORM ONLY THE OFFERING WILL BE MADE THROUGH THE FEDERAL FARM CREDIT BANKS FUNDING CORP AND THE ENTIRE NATIONWIDE GROUP OF SECURITIES DEALERS AND DEALER BANKS HOUSEHOLD FINANCE CORP 300 MILLION ISSUE OF SENIOR NOTES DUE JAN 15 2003 WAS PRICED AS 7 5/8 AT 99917 TO YIELD 7637 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 91 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO HOUSEHOLD FINANCE IS A UNIT OF HOUSEHOLD INTERNATIONAL INC REVCO DS INC 140 MILLION ISSUE OF SENIOR NOTES DUE JAN 15 2000 WAS PRICED AT PAR TO YIELD 9125 THE DEAL'S SIZE WAS INCREASED FROM A PREVIOUSLY PLANNED 125 MILLION THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED BA3 BY MOODY'S AND DOUBLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MORGAN STANLEY & CO AND JEFFERIES & CO ARE COMANAGERS COMCAST CORP OFFERING OF 200 MILLION OF 95 SENIOR SUBORDINATED DEBENTURES DUE JANUARY 2008 THE COMPANY SAID INTEREST ON THE DEBENTURES IS PAYABLE ON JAN 15 AND JULY 15 OF EACH YEAR BEGINNING JULY 15 1993 THE DEBENTURES MAY NOT BE REDEEMED BY COMCAST PRIOR TO JAN 15 2000 THE DEBENTURES WERE UNDERWRITTEN BY FIRST BOSTON CORP FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES GOLD 1466 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE ISSUE SETTLES FEB CREDIT FONCIER DE FRANCE FRANCE THREE BILLION FRENCH FRANCS OF 8 3/8 EUROBONDS DUE FEB 8 2007 AT AN ISSUE PRICE OF 98224 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 98224 TO YIELD 859 ANNUALLY A SPREAD OF 37 BASIS POINTS ABOVE THE COMPARABLE FRENCH OAT ISSUE DUE IN 2008 FEES 3/8 CREDIT NATIONAL FRANCE 15 BILLION FRENCH FRANCS OF 8 1/4 EUROBONDS DUE FEB 5 1996 AT AN ISSUE PRICE OF 10197 VIA SOCIETE GENERALE REOFFERED AT 99795 TO YIELD 833 ANNUALLY A SPREAD OF 35 BASIS POINTS ABOVE THE COMPARABLE FRENCH GOVERNMENT OAT ISSUE FEES 1 3/8 AEGON NV THE NETHERLANDS 250 MILLION DUTCH GUILDERS OF COLLARED FLOATING RATE NOTES DUE FEB 5 2003 AT 10065 VIA ABN AMRO BANK REOFFERED TO INVESTORS AT 10040 AND CARRY A COUPON OF SIXMONTH LONDON INTERBANK OFFERED RATE LESS 1/16 WITH A MINIMUM 6 AND A MAXIMUM 775 FEES 1/2 FINANCE FOR DANISH INDUSTRY DENMARK 300 MILLION DANISH KRONER OF 9 1/4 EUROBONDS DUE FEB 23 2000 AT AN ISSUE PRICE OF 10170 TO YIELD 929 ANNUALLY AFTER DISCOUNTING FEES VIA UNIBANK AS FEES 1 7/8 OESTERREICHISCHE DONAUKRAFTWERKE AUSTRIA 130 MILLION SWISS FRANCS OF 5 1/4 PUBLIC BONDS DUE FEB 18 2005 PRICED AT 102 1/2 VIA UNION BANK OF SWITZERLAND FEES 2 1/2 9301110029 930111 TECHNOLOGY & HEALTH CLINTON ADVISER CALLS FOR ESTABLISHING NATIONAL CAP ON HEALTH CARE SPENDING BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A LEADER OF PRESIDENTELECT CLINTON'S TRANSITION TEAM SAID THE US WILL HAVE TO SET A NATIONAL HEALTH CARE BUDGET TO SUCCESSFULLY OVERHAUL ITS TROUBLED HEALTH SYSTEM STUART ALTMAN MR CLINTON'S DEPUTY TRANSITION CHIEF FOR HEALTH CARE TOLD A CONFERENCE ON COMPETITION IN HEALTH CARE THAT A BUDGET IS NECESSARY TO BUILD FISCAL DISCIPLINE INTO A RESTRUCTURED HEALTH SYSTEM AS IT EXTENDS COVERAGE TO 35 MILLION UNINSURED AMERICANS OTHERWISE HE SAID THE ECONOMY WILL SUFFOCATE AS HEALTH CARE GOBBLES UP MORE AND MORE OF THE GROSS DOMESTIC PRODUCT BUT ADVOCATES OF MANAGED COMPETITION A BLEND OF REGULATION AND COMPETITION THAT IS EXPECTED TO BE THE FOUNDATION OF MR CLINTON'S PLAN FOR OVERHAULING HEALTH CARE DISPUTE MR ALTMAN'S VIEW A GLOBAL BUDGET IS AKIN TO BOMBING FROM 35000 FEET ALAIN C ENTHOVEN A STANFORD UNIVERSITY ECONOMIST AND PRINCIPAL ARCHITECT OF MANAGED COMPETITION TOLD THE CONFERENCE YOU DON'T SEE THE FACES OF THE PEOPLE YOU KILL HE BELIEVES THAT HEALTH SYSTEM REFORM CAN BEST BE ACHIEVED WITH THE HELP OF TAX CAPS NOT BUDGET CAPS THIS CLASH OF VIEWS AT THE MEETING SPONSORED BY THE ROBERT WOOD JOHNSON FOUNDATION OFFERS A PREVIEW OF ONE OF THE CENTRAL POLICY BATTLES EXPECTED TO SHAPE THE COMING HEALTH REFORM DEBATE WOULD A BUDGET ENHANCE OR IMPEDE COMPETITIVE MARKET FORCES IN CONTAINING HEALTH COSTS OR WHAT MIX OF REGULATION AND COMPETITION HOLDS THE MOST PROMISE FOR EFFECTIVELY RESTRUCTURING THE SYSTEM DURING THE CAMPAIGN MR CLINTON EMBRACED IN VAGUE TERMS BOTH MANAGED COMPETITION AND SOME KIND OF EXPENDITURE CAP BUT SPECIFIC POLICY PROPOSALS ARE STILL BEING DEVELOPED POSSIBLE STRATEGIES FOR A HEALTH CARE BUDGET RANGE FROM IMPOSING SPECIFIC LIMITS ON WAGES PRICES AND INSURANCE PREMIUMS TO SETTING BROAD EXPENDITURE TARGETS IN ANY CASE EVEN SUPPORTERS OF THE IDEA ACKNOWLEDGE THAT SETTING A CREDIBLE BUDGET FOR AN INDUSTRY THAT IS EXPECTED TO CONSUME MORE THAN 900 BILLION THIS YEARONESEVENTH OF THE ENTIRE ECONOMY IS AN ONEROUS TASK AS ENVISIONED BY MR ENTHOVEN AND A GROUP OF HEALTH POLICY EXPERTS KNOWN AS THE JACKSON HOLE GROUP MANAGED COMPETITION WOULD RESTRAIN COSTS WITHOUT GOVERNMENTIMPOSED BUDGET TARGETS UNDER THE IDEA LARGE PURCHASING ORGANIZATIONS WOULD BE SET UP AROUND THE US TO FORCE HEALTH PLANS TO COMPETE FOR BUSINESS ON THE BASIS OF PRICE AND QUALITY FOR A STANDARD PACKAGE OF BENEFITS CARE WOULD BE PREPAID AND HEALTH PLANS WOULD BE LIABLE FOR COSTS THAT EXCEED THEIR REVENUES CONSUMERS WOULD CHOOSE FROM AMONG SEVERAL PLANS AND COSTS THAT EXCEED THE PREMIUM OF THE LOW BIDDER WOULDN'T BE TAX DEDUCTIBLE CURRENTLY EMPLOYERPAID HEALTH BENEFITS ARE FULLY TAX DEDUCTIBLE FOR BOTH EMPLOYERS AND EMPLOYEES HELPING TO INSULATE CONSUMERS FROM THE COSTCONSEQUENCES OF THEIR HEALTH CARE DECISIONS IN ADDITION A REGULATORY BOARD WOULD CERTIFY HEALTH PLANS ON QUALITY PERFORMANCE AND OTHER FACTORS AND ONLY CARE PURCHASED FROM CERTIFIED PLANS WOULD BE TAX DEDUCTIBLE THESE FEATURES PROPONENTS BELIEVE WOULD DAMP FACTORS THAT DRIVE UP COSTS IN THE CURRENT SYSTEM BY PROMPTING DOCTORS AND HOSPITALS TO FORM MORE EFFICIENT HEALTH DELIVERY ORGANIZATIONS AND ENCOURAGING CONSUMERS TO USE THEM THEY WOULD ALSO RAISE TAX REVENUE TO HELP FINANCE HEALTH COVERAGE FOR THE UNINSURED BUT SUCH IDEAS ARE LARGELY UNTRIED IN THE MARKETPLACE AND MR ALTMAN ARGUED THAT A GLOBAL BUDGET WOULD BE NECESSARY TO PERSUADE CONGRESS AND THE PUBLIC TO GIVE THEM A CHANCE THEY'RE NOT GOING TO GIVE US THE KEYS TO THE TREASURY TO DO WHAT NEEDS TO BE DONE HE SAID MR ENTHOVEN SAID THAT IF HIS APPROACH FAILS TO SUFFICIENTLY REDUCE OR CONTAIN COSTS ADJUSTMENTS COULD BE MADE TO BENEFITS PACKAGES DEDUCTIBLES AND OTHER FEATURES BUT HE MAINTAINED THAT GOVERNMENTIMPOSED BUDGET LIMITS WOULD BE BOTH UNWIELDY AND UNSUCCESSFUL IN MANAGING COSTS OTHER SPEAKERS AT THE CONFERENCE WONDERED NOT WHETHER MANAGED COMPETITION COULD WORK UNDER A BUDGET BUT WHETHER IT COULD WORK AT ALL GIVEN SOME ENTRENCHED CHARACTERISTICS OF THE HEALTH CARE SYSTEM THAT COULD UNDERMINE THE IDEA SUCH AS THE 3TO1 RATIO OF MEDICAL SPECIALISTS TO PRIMARYCARE DOCTORS AND THE LACK OF MEDICAL SERVICES IN SOME RURAL AND INNERCITY COMMUNITIES 9301110028 930111 BUSINESS BRIEF SEEQ TECHNOLOGY INC COMPANY POSTS A NET LOSS FOR FISCAL FOURTH QUARTER SEEQ TECHNOLOGY INC POSTED A NET LOSS OF 56 MILLION OR 36 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDED SEPT 30 FOR THE YEAREARLIER PERIOD SEEQ HAD NET INCOME OF 580000 OR FOUR CENTS A SHARE REVENUE FOR THE RECENT QUARTER DROPPED 48 TO 6 MILLION FROM 116 MILLION THE FREMONT CALIF SEMICONDUCTOR COMPANY BLAMED SLOW DELIVERIES FROM SUPPLIERS OF THE WAFERS IT USES TO MAKE CHIPS AMONG OTHER THINGS LESS THAN A YEAR AGO SEEQ STOPPED MAKING ITS OWN WAFERS AND BEGAN BUYING THEM FROM OUTSIDE SUPPLIERS IN A MOVE AIMED AT CUTTING COSTS AND ENHANCING PROFITABILITY THE COMPANY SAID THE NET LOSS INCLUDED 12 MILLION IN UNEXPECTED CHARGES RELATED TO A PLANT CLOSING SEEQ TOOK WRITEOFFS TOTALING 62 MILLION FOR THE CLOSING FOR THE FIRST QUARTER BUT THE COMPANY SAID THE PLANT CLOSING COST MORE THAN IT ANTICIPATED REQUIRING THE ADDITIONAL WRITEDOWNS 9301110027 930111 WHAT'S NEWS WORLDWIDE IRAQIS CROSSED THE KUWAITI BORDER AND SEIZED MISSILES UN OFFICIALS SAID UN MILITARY OBSERVERS IN KUWAIT REPORTED THAT ABOUT 200 IRAQIS CROSSED THE BORDER EARLY YESTERDAY TO SEIZE ARMAMENTS INCLUDING FOUR SURFACETOSURFACE SILKWORM MISSILES THAT WERE CAPTURED BY USLED FORCES DURING THE GULF WAR THE UN OFFICIALS SAID THEY TRIED TO USE THEIR CARS TO BLOCK THE IRAQIS DURING THE 90MINUTE INCURSION AND THAT ONE UN VEHICLE WAS RAMMED BY AN IRAQI TRUCK THE INCIDENT CAME AS THE US AND IRAQ HEADED TOWARD A SHOWDOWN OVER IRAQ'S RECENT AGGRESSIVENESS ALONG THE KUWAITI BORDER AND BAGHDAD'S NEW CURBS ON UN INSPECTORS OVER THE WEEKEND THE US SAID IRAQ HAD HEEDED AN ULTIMATUM AND MOVED ANTIAIRCRAFT MISSILES FROM SOUTHERN IRAQ BUT BAGHDAD DENIED A WASHINGTON CLAIM THAT IT ACCEDED TO WESTERN DEMANDS FRANCE'S FOREIGN MINISTER DECLARED HIS GOVERNMENT WOULD ACT ALONE IF NECESSARY TO LIBERATE PRISON CAMPS IN BOSNIA WHERE CIVILIANS HAVE BEEN RAPED AND TORTURED MEANWHILE BRITISH TROOPS IN BOSNIA RETURNED FIRE AGAINST SERBS FOR THE FIRST TIME AFTER COMING UNDER ATTACK WHILE ESCORTING AN AID CONVOY OFFICIALS IN LONDON SAID SERBS APPEARED TO BACK OFF FORMAL DEMANDS FOR A SEPARATE STATE WITHIN BOSNIA BUT GENEVA MEDIATORS SAID THE PROPOSAL WAS TOO VAGUE TO HELP PEACE TALKS IN SARAJEVO BOSNIA'S GOVERNMENT SAID IT WOULD BRING CRIMINAL CHARGES AGAINST THE UN PROTECTION FORCE OVER FRIDAY'S KILLING OF DEPUTY PRIME MINISTER TURAJLIC BY A SERB LEBANESE PRIME MINISTER HARIRI BANNED FURTHER UN AIRLIFTS OF PALESTINIANS FROM ISRAEL WHO ARE STRANDED IN A CAMP IN SOUTH LEBANON HE SAID HE WAS UPSET THAT THE RED CROSS HAD TAKEN TWO PALESTINIANS OUT OF THE CAMP SATURDAY IN JERUSALEM ISRAEL'S RABIN MET WITH A UN ENVOY BUT FAILED TO BREAK A STALEMATE ON THE DEPORTEES GUNFIRE ERUPTED ACROSS MOGADISHU AS SEVEN US CONGRESSMEN CAME UNDER SNIPER FIRE MARINES KILLED THREE SOMALIS IN A SHOOTOUT AND DOZENS OF SOMALIS WERE WOUNDED IN CLAN FIGHTING IN ETHIOPIA 14 SOMALI FACTIONS ANNOUNCED A TRUCE AGREEMENT AN OIL SLICK FROM A GROUNDED SHIP DRIFTED 25 MILES UP THE WEST COAST OF THE SHETLAND ISLANDS THREATENING TO DESTROY MUCH OF THE AREA'S SALMONFARMING OPERATIONS SALVAGE OFFICIALS ESTIMATED THAT MUCH LESS THAN HALF OF THE 25MILLIONGALLON CARGO HAS SPILLED SINCE THE TANKER WENT AGROUND LAST TUESDAY THE EPA WILL ALLOW A HAZARDOUSWASTE INCINERATOR IN OHIO TO MOVE ONE STEP CLOSER TO COMMERCIAL OPERATION THE AGENCY FRIDAY APPROVED A TRIAL TEST FOR THE PLANT IN APPARENT DEFIANCE OF THE CLINTON ADMINISTRATION ENVIRONMENTAL ACTIVISTS HAVE OPPOSED THE PLANT'S OPERATION INTERIOR SECRETARY LUJAN ANNOUNCED HE PLANS TO TRANSFER OWNERSHIP OF A PATCH OF FEDERALLY OWNED DESERT IN SOUTHERN CALIFORNIA TO THE STATE A STEP FORWARD IN A PROPOSAL TO BUILD A DUMP FOR LOWLEVEL NUCLEAR WASTE AT THE SITE HOUSE DEMOCRATS ARE ANTICIPATING FURTHER PARTY UNREST WITH THE OUSTER OF INTELLIGENCE PANEL CHAIRMAN MCCURDY AND A CRIMINAL INVESTIGATION INTO THE PERSONAL FINANCES OF THE WAYS AND MEANS PANEL'S ROSTENKOWSKI INDIAN POLICE FIRED ON RIOTERS IN BOMBAY AS HINDUMUSLIM VIOLENCE CONTINUED FOR A FIFTH DAY AND SCORES OF FIRES RAGED ACROSS THE CITY THE DEATH TOLL FROM CLASHES IN BOMBAY AND TWO OTHER CITIES ROSE TO AT LEAST 162 THE COLLEGE BOARD SAID A FIELD TEST SHOWED THAT THE USE OF CALCULATORS MARGINALLY BOOSTS SAT MATH SCORES THE BOARD SAID THAT WHEN CALCULATORS ARE ALLOWED IN FUTURE TESTING ALL SCORES WILL BE ADJUSTED DOWNWARD BY A UNIFORM PERCENTAGE SO THAT CALCULATOR USE WON'T CREATE A BLIP INDIVIDUAL SCORES WON'T BE CHANGED A CLINTON AIDE TOLD A CONFERENCE THAT THE US WILL HAVE TO SET A NATIONAL BUDGET TO SUCCESSFULLY OVERHAUL ITS HEALTH SYSTEM STUART ALTMAN SAID A BUDGET IS NECESSARY TO BUILD FISCAL DISCIPLINE INTO A RESTRUCTURED HEALTH SYSTEM BUSH WILL BE CHALLENGED IN FEDERAL APPEALS COURT TODAY BY LAWYERS FOR A MAJORITY OF THE POSTAL SERVICE BOARD THE GROUP IS SEEKING TO PREVENT THE PRESIDENT FROM FIRING FIVE GOVERNORS BUSH STEPPED UP THE DISPUTE FRIDAY BY NAMING A FRIEND TO THE GOVERNING PANEL 9301110026 930111 BUSINESS BRIEF DATA SWITCH CORP REVENUE SHORTFALL TO RESULT IN LOSS FOR FOURTH QUARTER DATA SWITCH CORP SHELTON CONN SAID A GREATER THAN 30 REVENUE SHORTFALL WILL CAUSE IT TO REPORT A MODEST LOSS FOR THE FOURTH QUARTER THE COMPANY BLAMED THE REVENUE DECLINE ON CUSTOMER DEFERRALS OF SHIPMENTS BY DATA SWITCH UNTIL THE CURRENT YEAR THIS LED TO FOURTHQUARTER REVENUE THAT WILL BE SLIGHTLY LESS THAN 20 MILLION COMPARED WITH 293 MILLION A YEAR EARLIER NET INCOME IN LAST YEAR'S FOURTH QUARTER WAS 897000 OR EIGHT CENTS A SHARE IN ADDITION DATA SWITCH ENTERED 1993 WITH A FAR LARGER BACKLOG OF 10 MILLION BECAUSE OF THE DELAYED SHIPMENTS COMPARED WITH 44 MILLION A YEAR EARLIER FRIDAY DATA SWITCH SHARES FELL 375 CENTS TO CLOSE AT 21875 IN NATIONAL OVERTHECOUNTER TRADING 9301110025 930111 BUSINESS BRIEF TOYO SUISAN KAISHA LTD JAPAN NOODLE MAKER PLANS TO BUILD IRVINE CALIF PLANT TOYO SUISAN KAISHA LTD A JAPANESE INSTANT NOODLE MAKER WILL BUILD A PLANT IN IRVINE CALIF A COMPANY OFFICIAL SAID THE COMPANY HAS ACQUIRED THE SITE BUT DECLINED TO REVEAL THE PURCHASE PRICE IT WILL INVEST SEVEN BILLION YEN 558 MILLION TO BUILD THE PLANT WHICH IS SLATED TO START MAKING INSTANT NOODLES IN MID1994 BY 1995 THE COMPANY PLANS TO ADD A NEW LINE TO THE IRVINE PLANT FOR REFRIGERATED AND FROZEN FOODS AT AN INVESTMENT COST OF THREE BILLION YEN WITH THE NEW PLANT THE COMPANY HOPES TO INCREASE ANNUAL US SALES TO 200 MILLION FROM 140 MILLION IN 1992 TOYO SUISAN NOW OWNS TWO US INSTANT NOODLE PLANTS 9301110024 930111 BIG THREE AUTO MAKERS PUT ON DISPLAY OF UNITY IN TRADE REGULATORY MATTERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE LEADERS OF THE BIG THREE US AUTO MAKERS HAVE PUT ON AN UNPRECEDENTED DISPLAY OF UNITY THAT COULD TRANSLATE SOON INTO A RENEWED ASSAULT ON JAPANESE COMPETITORS AND FEDERAL REGULATORS ONE OF THE TOP ITEMS ON DETROIT'S AGENDA IS AN INCREASE IN TARIFFS ON JAPANESE MINIVANS AND MULTIPURPOSE VEHICLES AND GENERAL MOTORS CORP HAS AGREED TO SUPPORT CALLS FROM FORD MOTOR CO AND CHRYSLER CORP FOR REIMPOSITION OF A 25 TARIFF ON IMPORTED MINIVANS AND FOURDOOR SPORT UTILITY VEHICLES IN ADDITION THE BIG THREE SAY THEY HAVE AGREED THAT THE GOVERNMENT SHOULD TAKE CONTROL OF HEALTHCARE COSTS AND THAT HIGHER GASOLINE TAXES ARE BETTER THAN RULES THAT FORCE AUTO MAKERS TO BUILD MOREFUELEFFICIENT CARS WHEN FUEL IS CHEAP IN THE PAST GM HAS STOOD APART FROM ITS CROSSTOWN RIVALS ON THESE TRADE AND REGULATORY MATTERS BUT GM PRESIDENT JOHN F SMITH JR SAID ON FRIDAY THAT THAT HAS CHANGED YOU GET REALITY WHEN YOU START LOSING THE KIND OF MONEY WE LOST HE SAID DURING A NEWS CONFERENCE REFERRING TO GM'S 65 BILLION IN DEFICITS DURING 1990 AND 1991 THE AUTO INDUSTRY LEADERS WHO RECENTLY OUSTED HONDA MOTOR CO FROM THEIR TRADE GROUP CLEARLY ARE EAGER TO CAPITALIZE ON THEIR JOINT MEETING WEDNESDAY WITH PRESIDENTELECT CLINTON IN THE WAKE OF THAT MEETING A NERVOUS JAPANESE GOVERNMENT SAID IT WILL EXTEND FOR ONE MORE YEAR THE VOLUNTARY 165MILLIONVEHICLE CAP ON PASSENGERCAR EXPORTS TO THE US THAT GESTURE DIDN'T MOLLIFY DETROIT HOWEVER JAPANESE AUTO MAKERS HAVEN'T HIT THE CAP IN RECENT YEARS BECAUSE THEY BUILD SO MANY VEHICLES IN THE US ON FRIDAY GM'S MR SMITH FORD CHAIRMAN HAROLD A POLING AND CHRYSLER CHAIRMAN ROBERT EATON MET AGAIN IN DETROIT TO OUTLINE WHAT THEY HOPE MR CLINTON WILL DO FOR THEM WHEN HE BECOMES PRESIDENT THE THREE EXECUTIVES DELIVERED THEIR MESSAGES IN CAREFULLY COORDINATED SPEECHES TO AN AUDIENCE OF MORE THAN 3000 PEOPLE AT AN ECONOMIC CLUB OF DETROIT LUNCHEON MR POLING HANDLED TRADE REITERATING HIS CALL FOR TOUGHER ACTION UNLESS JAPAN AGREES TO ERASE ITS TRADE SURPLUS WITH THE US IN FIVE YEARS MR SMITH TOOK AIM AT FEDERAL REGULATIONS AND CALLED FOR COOPERATION BETWEEN INDUSTRY AND GOVERNMENT MR EATON SAID IT WAS TIME FOR THE GOVERNMENT TO CONTROL HEALTHCARE COSTS THEN THE THREE CHIEF EXECUTIVES AND OWEN BIEBER PRESIDENT OF THE UNITED AUTO WORKERS UNION WENT INTO A CLOSEDDOOR MEETING WITH SEN JOHN DINGELL THE POWERFUL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE SEN CARL LEVIN AND OTHER MEMBERS OF MICHIGAN'S CONGRESSIONAL DELEGATION THE PARTICIPANTS EMERGED TO GIVE STATEMENTS SHORT ON SPECIFICS BUT CLEARLY DESIGNED TO CONVINCE THE INCOMING ADMINISTRATION THAT DETROIT'S BIG PLAYERS NO LONGER ARE SQUABBLING AMONG THEMSELVES WE ARE ALL IN ACCORD MR BIEBER SAID ALTHOUGH HE ALLOWED THAT DIFFERENCES REMAIN OVER THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH THE UAW OPPOSES AND THE AUTO MAKERS SUPPORT MR EATON REITERATING FRIDAY'S CALL FOR UNITY SAID YESTERDAY AT AN INDUSTRY CONFERENCE SPONSORED BY THE TRADE PUBLICATION AUTOMOTIVE NEWS THAT THE JAPANESE HAVE OUTLOBBIED US IN WASHINGTON IT'S ABOUT TIME WE HAD THE SAME CLOUT HE CALLED FOR THE BIG THREE TO LOBBY MORE EFFECTIVELY AND TO LEARN FROM THE SUCCESS OF CLOSE INDUSTRYGOVERNMENT COOPERATION IN JAPAN 9301110023 930111 INTERNATIONAL KUWAIT ACCUSES SEVEN IN SUIT OVER BIG LOSSES UNIT IN SPAIN ALLEGEDLY LOST OR DIVERTED INVESTMENTS EXCEEDING 860 MILLION BY PETER WALDMAN AND CARLTA VITZTHUM STAFF REPORTERS OF THE WALL STREET JOURNAL MADRID THE KUWAIT INVESTMENT OFFICE FILED SUIT AGAINST SEVEN OF ITS FORMER OFFICERS AND EMPLOYEES INCLUDING A COUSIN OF THE EMIR OF KUWAIT ALLEGING THE GROUP CRIMINALLY LOST OR DIVERTED MORE THAN 100 BILLION PESETAS 860 MILLION OF KUWAITI INVESTMENTS IN SPAIN THE SEVEN EXECUTIVES ARE FORMER DIRECTORS OF GRUPO TORRAS SA THE KIO'S SPANISH HOLDING COMPANY WHICH ACQUIRED STAKES IN DOZENS OF LARGE SPANISH COMPANIES AFTER 1985 TORRAS SADDLED WITH HUGE LOSSES AND MORE THAN 18 BILLION OF DEBT FILED FOR RECEIVERSHIP IN DECEMBER IMPERILING AS MANY AS 15000 INDUSTRIAL JOBS IN SPAIN THE KIO HAS PUT ITS LOSSES FROM ITS SPANISH INVESTMENTS AT ALMOST 5 BILLION THE SUIT FILED FRIDAY IN MADRID'S HIGH COURT BUT SEALED UNTIL ACCEPTED FOR INVESTIGATION BY JUDGE MIGUEL MOREIRAS HAD BEEN EXPECTED FOR MONTHS BUT THE QUESTION OF WHO WOULD AND SHOULD BE CHARGED IN THE FILING HAD BEEN THE SUBJECT OF HOT DEBATE IN SPAIN KUWAIT AND IN THE KIO'S LONDON HEADQUARTERS ITSELF AS THE MAIN INVESTMENT ARM OF KUWAIT'S SURPLUS PETRODOLLARS THE KIO WAS MANAGED BY RELATIVES OF KUWAIT'S EMIR JABER ALAHMED ALSABAH INDEED THE SUIT NAMES AS A DEFENDANT FORMER KIO AND GRUPO TORRAS CHAIRMAN FAHD ALSABAH A COUSIN OF THE EMIR FROM A DIFFERENT BRANCH OF THE ROYAL FAMILY IT DOESN'T NAME FAHD ALSABAH'S PROTEGE AT THE KIO KHALED ALSABAH WHO COMES FROM THE EMIR'S BRANCH OF THE ROYAL FAMILY AND NEITHER DOES THE SUIT NAME FORMER KUWAITI FINANCE AND OIL MINISTER ALI ALKHALIFA ALSABAH THE ROYAL COUSIN WHO OVERSAW KUWAIT'S INVESTMENTS AFTER IRAQ INVADED THE EMIRATE IN 1990 WHEN THE KIO MYSTERIOUSLY DOUBLED ITS INVESTMENT IN SPAIN TO MORE THAN 4 BILLION THE GENERAL IMPRESSION HERE IS THAT THIS SUIT DOESN'T REACH HIGH ENOUGH SAID ABDALLAH NIBARI A DIRECTOR OF THE KUWAIT ECONOMIC SOCIETY AND AN OPPOSITION MEMBER OF KUWAIT'S PARLIAMENT THE ONLY OTHER KUWAITI NAMED IN THE SUIT IS FOUAD JAFFAR THE KIO'S FORMER GENERAL MANAGER WHO RESIGNED IN EARLY 1990 IN LONDON MR JAFFAR DECLINED TO COMMENT ON THE CHARGES AND FAHD ALSABAH DIDN'T RETURN MESSAGES LEFT WITH HIS SECRETARY THE MOST PROMINENT SPANIARD CHARGED IS JAVIER DE LA ROSA A FLASHY CATALAN FINANCIER AND DEPUTY CHAIRMAN OF TORRAS UNTIL HIS RESIGNATION IN MAY 1992 THE OTHER FOUR EXECUTIVES NAMED JORGE NUNEZ NARCISO DE MIR MIGUEL SOLER AND JUAN JOSE FOLCHI WERE CLOSE COLLABORATORS OF MR DE LA ROSA AT TORRAS FROM 1986 TO 1992 THE SUIT ALLEGES CRIMINAL ACTS OF FALSIFYING MERCANTILE AND PUBLIC DOCUMENTS FRAUD PRICE MANIPULATION AND TAX EVASION SPANISH LAW ALLOWS PLAINTIFFS TO FILE CRIMINAL CHARGES IN PRIVATE LAWSUITS A STATEMENT ISSUED BY THE KIO SAID THE SUIT SEEKS TO HAVE PRECAUTIONARY MEASURES TAKEN AGAINST THE ASSETS OF FORMER EXECUTIVES TO COVER FINANCIAL RESPONSIBILITIES ARISING FROM THE LITIGATION THE KUWAITI GOVERNMENT RECENTLY FROZE THE BANK ACCOUNTS IN KUWAIT OF FORMER KIO OFFICIALS AND THEIR CLOSE RELATIVES WHO WERE ACCUSED OF CONTRIBUTING TO THE FUND'S LOSSES WORLDWIDE MR DE LA ROSA DENIED ANY WRONGDOING AND SAID HIS LAWYERS ARE PREPARING LEGAL ACTION AGAINST THE CURRENT MANAGEMENT OF TORRAS AND KIO AND IF NECESSARY AGAINST THE GOVERNMENT OF KUWAIT HE ATTRIBUTED THE SUIT TO POLITICAL AND PERSONAL MANEUVERS AGAINST HIM AND SAID THE CURRENT MANAGEMENT OF TORRAS HAD CAUSED THE GROUP TO LOSE 300 BILLION PESETAS SINCE IT TOOK OVER IN JUNE THE PLAINTIFF'S INTENTION IS TO DIVERT THE PUBLIC'S ATTENTION AWAY FROM THE FACT THAT AN INSTITUTIONAL INVESTOR LIKE THE KIO HAS FAILED TO FULFILL ITS OBLIGATIONS HE SAID MR DE LA ROSA CONTENDS THAT TORRAS WAS FORCED INTO RECEIVERSHIP BECAUSE OF THE KIO'S REFUSAL TO INJECT FRESH FUNDS INTO THE GROUP'S UNITS BUT THE NEW KIO MANAGEMENT THAT TOOK OVER AT TORRAS SEVEN MONTHS AGO ARGUES IT WAS MISMANAGEMENT AND FRAUD THAT CAUSED TORRAS'S DOWNFALL 9301110022 930111 POLITICS & POLICY CLINTON TO TAP TOP ECONOMISTS FOR HIS TEAM BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENTELECT CLINTON THE TARGET OF SOME EARLY GROUSING FROM ECONOMISTS FOR HIS CHOICE OF LAURA TYSON AS CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS IS EXPECTED TO NAME SEVERAL WELLREGARDED ECONOMISTS TO OTHER POSTS TRANSITION AIDES SAID JOSEPH STIGLITZ 49 YEARS OLD A HIGHLY RESPECTED ECONOMIC THEORIST AT STANFORD UNIVERSITY IS A STRONG CONTENDER FOR THE SEAT ON THE THREEMEMBER BOARD THAT FOCUSES ON REGULATORY ISSUES MR STIGLITZ WHO BECAME A FULL PROFESSOR AT YALE AT AGE 26 IS KNOWN FOR HIS WORK ON HOW MARKETS WORK WHEN PARTICIPANTS HAVE LESS THAN FULL INFORMATION HE HAS ALSO TAUGHT AT OXFORD AND PRINCETON HIS CANDIDACY FOR A SEAT ON THE CEA WAS FIRST REPORTED IN THE NEW YORK TIMES HE WOULD JOIN TWO OTHER BIGNAME ECONOMISTS IN THE CLINTON ADMINISTRATION SUBJECT TO SENATE CONFIRMATION PRINCETON PROF ALAN BLINDER IS TO HANDLE MACROECONOMIC ISSUES ON THE COUNCIL AND LAWRENCE SUMMERS WHO IS ON LEAVE FROM HARVARD TO BE THE WORLD BANK'S CHIEF ECONOMIST IS TO BE THE TREASURY'S INTERNATIONAL UNDERSECRETARY IN THAT ROLE HE IS EXPECTED TO BE TREASURY SECRETARYDESIGNATE LLOYD BENTSEN'S TOP DEPUTY FOR THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WHICH ATTEMPTS TO COORDINATE ECONOMIC POLICIES WHILE I DISAGREE WITH SOME OF THEIR VIEWS SAID PRESIDENT BUSH'S ECONOMIC ADVISER MICHAEL BOSKIN EACH OF THEM IS PROPERLY EXTREMELY HIGHLY REGARDED IN THE ECONOMICS PROFESSION THERE IS NO DOUBT THAT LIST OF NAMES AND I INCLUDE LAURA TYSON IS A VERY VERY STRONG GROUP SAID ROBERT SOLOW A NOBEL LAUREATE IN ECONOMICS AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY AND A CLINTON SUPPORTER THESE ARE PEOPLE OF TALENT ABILITY AND CONSIDERABLE PRESTIGE SEPARATELY AS AIDES GROW EDGY AWAITING THEIR FATE IN THE NEW ADMINISTRATION MR CLINTON CONTINUED TO PIECE TOGETHER A WHITE HOUSE STAFF HE WAS EXPECTED TO FINISH BY THE WEEKEND BUT IS STILL WORKING ON A PLAN THAT WILL INCLUDE WOMEN AND MINORITIES WHILE STILL REWARDING MANY OF HIS WHITE MALE FRIENDS AND CAMPAIGN WORKERS MR CLINTON ALSO IS SEEKING A STRUCTURE THAT DOESN'T PIT STAFFERS AGAINST EACH OTHER FOR THE ECONOMISTS BEING NAMED TO THE ADMINISTRATION IT'S TOO EARLY TO TELL HOW MUCH INFLUENCE ANY OF THEM WILL HAVE ON MR CLINTON HIMSELF HIS POLICIES AND THE FEDERAL BUREAUCRACY BUT THEIR SELECTION ADDS CREDIBILITY TO THE NEW ADMINISTRATION AMONG ECONOMISTS THE IMPORTANT THING MR BOSKIN SAID WILL BE TRANSLATING THEIR PROFESSIONAL EXPERTISE INTO A MUCH MORE SENSIBLE MARKETORIENTED ECONOMIC POLICY THAN THE ORIGINAL SOCIALENGINEERING BIGGOVERNMENT APPROACH OF THE ORIGINAL CLINTON PROGRAM MS TYSON HAS DRAWN FIRE FROM SOME ACADEMIC ECONOMISTS BECAUSE HER STATURE DOESN'T MATCH THAT OF MR BOSKIN MR SUMMERS OR MR BLINDER AND BECAUSE SHE HAS ADVOCATED A MORE AGGRESSIVE ROLE FOR GOVERNMENT IN TRADE AND INDUSTRIAL POLICY THAN MANY OTHER ECONOMISTS ALTHOUGH HE ACKNOWLEDGED THAT SOME OF MS TYSON'S VIEWS ARE CONTROVERSIAL MR SOLOW SAID THE ATTACKS ON HER NOMINATION HAVE BEEN UNWARRANTED AND UNDESERVED LABOR SECRETARYDESIGNATE ROBERT REICH WHO IS REGARDED WITH SUSPICION BY SOME ECONOMISTS FOR TREADING ON THEIR TURF WITHOUT A PHD HAS CREATED A CHIEF ECONOMIST'S POST FOR THE DEPARTMENT AND HAS CHOSEN HARVARD PROF LAWRENCE KATZ A RESPECTED LABOR ECONOMIST TO FILL IT DAVID CUTLER A YOUNG PROTEGE OF MR SUMMERS WHOSE UNDERGRADUATE THESIS ON THE EFFECTS OF THE 1986 TAX REFORM ACT WAS PUBLISHED BY THE AMERICAN ECONOMICS ASSOCIATION IS EXPECTED TO BE A LIAISON BETWEEN THE COUNCIL OF ECONOMIC ADVISERS AND THE NEW NATIONAL ECONOMIC COUNCIL IN THE WHITE HOUSE THE NATIONAL ECONOMIC COUNCIL IS TO BE HEADED BY ROBERT RUBIN WHO IS COCHAIRMAN OF GOLDMAN SACHS & CO AND ISN'T AN ECONOMIST CLINTON AIDES SAID MR RUBIN IS ALSO EXPECTED TO HIRE SYLVIA MATTHEWS FOR HIS STAFF MS MATTHEWS A RHODES SCHOLAR WORKED ON ECONOMIC ISSUES DURING THE CAMPAIGN HE ALSO IS EXPECTED TO HAVE TWO DEPUTIES GENE SPERLING WHO COORDINATED ECONOMIC ISSUES FOR THE CLINTON CAMPAIGN AND BOWMAN CUTTER A BUDGET OFFICIAL IN THE CARTER ADMINISTRATION PROFESSORS TYSON STIGLITZ BLINDER KATZ AND CUTLER ALL EARNED THEIR DOCTORATES AT MIT MR CLINTON ALREADY HAS NAMED ALICE RIVLIN A FORMER PRESIDENT OF THE AMERICAN ECONOMICS ASSOCIATION TO BE DEPUTY DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE AS REPORTED TRANSITION OFFICIALS SAY ALICIA MUNNELL SENIOR VICE PRESIDENT AND RESEARCH DIRECTOR OF THE FEDERAL RESERVE BANK OF BOSTON IS LIKELY TO BE NOMINATED FOR ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY OTHER TOP ECONOMIC APPOINTMENTS AT THE STATE AND COMMERCE DEPARTMENTS AND THE WHITE HOUSE BUDGET OFFICE HAVE YET TO BE ANNOUNCED 9301110021 930111 BUSINESS BRIEF ROCHE HOLDING AG GROUP SALES ROSE 13 IN '92 PROFIT GROWTH TO BE POSTED ROCHE HOLDING AG PARENT OF A MAJOR SWISS PHARMACEUTICALS GROUP SAID 1992 GROUP SALES ROSE 13 AND THAT IT EXPECTS TO REPORT A CONSIDERABLE RISE IN GROUP PROFIT FOR THE YEAR THE BASELBASED COMPANY SAID GROUP SALES CLIMBED TO 1295 BILLION SWISS FRANCS 876 BILLION FROM 1145 BILLION FRANCS IN 1991 IT SAID ALL DIVISIONS CONTRIBUTED TO THE INCREASE LED BY A 16 RISE IN PHARMACEUTICALS DIVISION SALES TO 688 BILLION FRANCS IN OCTOBER THE COMPANY SAID IT EXPECTED A SUBSTANTIAL RISE IN GROUP PROFIT ON TOP A 56 INCREASE IN 1991 WHEN PROFIT REACHED 148 BILLION FRANCS HEINZ BOSSERT AN ANALYST AT RUED BLASS & CO EXPECTS ABOUT A 30 INCREASE IN 1992 NET GROUP PROFIT TO ABOUT 193 BILLION FRANCS JEROME BOUJOL AN ANALYST AT PICTET & CIE LOOKS FOR NET PROFIT TO RISE 31 TO ABOUT 194 BILLION FRANCS 9301110020 930111 LEISURE & ARTS TELEVISION BOOMERWATCH SHOW FOR THE DOCKERS SET BY DOROTHY RABINOWITZ NEW YEAR'S WEEKEND FOR EXAMPLE BROUGHT THE FIRST AIRING OF ABC'S GOOD MORNING AMERICA SUNDAY 910 AM EST A VENTURE THE PRODUCERS DESCRIBED WITH DELICATE VAGUENESS AS INTENDED FOR YOUNGER AUDIENCES YOUNGER PRESUMABLY THAN FANS OF THE WELLESTABLISHED CBS SUNDAY MORNING THE DELICACY VANISHED SOMEWHAT WHEN IN ORDER TO MAKE IT CLEAR THAT HIS SHOW WAS NOT GOING TO COMPETE WITH THE CBS PROGRAM FOR WHAT HE OBVIOUSLY CONSIDERED STAID CULTURAL STUFF THE GOOD MORNING AMERICA SUNDAY EXECUTIVE PRODUCER POINTEDLY OBSERVED THAT AFTER ALL THERE ARE JUST SO MANY CELLISTS AROUND SO GMAS WENT FORWARD WITHOUT CELLISTS BUT WITH AN EFFUSIVELY EARNEST COANCHOR BILL RITTER AND HIS PARTNER THE RATHER MORE DOWNTOEARTH DANA CLARK FIRST CAME SERIOUS MATTERS NEWS BULLETINS AND QUASINEWS BULLETINS SUCH AS THE ITEM ABOUT THE TWO LITTLE CHICAGO GIRLS ABANDONED FOR NINE DAYS BY VACATIONING PARENTS PARENTS WHO HAD ORDERED THE GIRLS TO EAT NO MORE THAN TWO MEALS A DAY UNDER THREAT OF PUNISHMENT ANCHOR RITTER SAW IN THIS STORY A LARGER WHAT ELSE SOCIAL MESSAGE THE DIFFICULTY PARENTS HAVE WITH CHILD CARE IN THE NEW AGE OF WORKING PARENTS ONE SHOULD NOTE IN MR RITTER'S DEFENSE THAT HE WASN'T ALONE IN MAKING THIS LUDICROUS PARALLEL WHICH LAST FRIDAY'S GOOD MORNING AMERICA CARRIED TO FAR MORE PREPOSTEROUS LENGTHS IN THE RAREFIED MENTAL WORLD OF THE MEDIA BOOMER THERE IS OF COURSE NO SUCH THING AS A CRIME THAT DOESN'T CONNECT WITH SOME UNIVERSAL PROBLEM AND IN WHICH ALL SOCIETY IS IN SOME WAY IMPLICATED ONLY IN THIS WORLD EVER PREOCCUPIED WITH ROOT CAUSES IS IT POSSIBLE TO SEE IN SO CONSPICUOUS A CASE OF CRUEL AND DELIBERATE ABANDONMENT A LINK WITH THE WORRIES OF WORKING PARENTS NEXT THE HOSTS INTRODUCED A TOPIC CLOSE TO THE HEARTS OF ALL BOOMERS BILL CLINTON'S WARDROBE FOR OUR EDIFICATION WOODY HOCHSWENDER ESQUIRE FASHION EDITOR WAS ON HAND TO SAY THAT THE PRESIDENTELECT'S ATTIRE ON THE CAMPAIGN TRAIL WAS AN EMBARRASSMENT UNTIL HE WAS TAKEN IN HAND BY FASHION GUIDES THIS IT WAS IMMEDIATELY CLEAR WAS AN INSPIRATIONAL STYLE STORY FOR THE TARGET AUDIENCE SURE ENOUGH WE LEARNED HOW FASHION ADVICE HAD DONE THE TRICK FOR MR CLINTON AND HOW WHEN HIS TIES WENT RED AND SUCH HE BEGAN TO TAKE ON WHAT MR HOCHSWENDER CALLED SOLEMNLY THE MYSTIQUE OF AUTHORITY MR HOCHSWENDER WENT ON TO EXPLAIN FURTHERMORE THAT CANDIDATE CLINTON HAD LEARNED SLOWLY BUT SURELY TO USE HIS BULK THERE'S A FACT THAT SHOULD GLADDEN EVERY AMERICAN HEART BILL CLINTON THIS EXPERT FURTHER ASSURED US IS A REAL DOCKERS GENERATION KIND OF GUY DOCKERS ONE NEED HARDLY REMIND ANYONE ARE THE CASUAL PANTS OF CHOICE OF THE YOUKNOWWHAT GENERATION TO HEAR THIS FASHION CONFUCIUS TELL IT MR CLINTON HAS HELPED MAKE AMERICANS FEEL IN THE UNSPEAKABLE BUT QUINTESSENTIAL BOOMER TERM GOOD ABOUT THEMSELVES ACCORDING TO MR HOCHSWENDER MR CLINTON DID THIS BY PROVING THAT YOU DON'T HAVE TO HAVE A LEAN BODY TO LOOK GOOD AROUND ABOUT HERE IT MIGHT HAVE HELPED TO HAVE A CELLO OR TWO TRUE HOST RITTER AGE 42 WHO FOR THE RECORD HAD DRAPED A HOUNDSTOOTH JACKET OVER HIS BULKLESS FRAME DID FEEL OBLIGED TO NOTE THAT SOME MIGHT THINK IT UNSEEMLY TO FOCUS SO MUCH ON DRESS RATHER THAN ISSUES BUT MR RITTER WENT SWIFTLY ON TO AVER IF YOU DON'T LOOK PRESENTABLE PEOPLE AREN'T GOING TO LISTEN TO WHAT YOU HAVE TO SAY THE FASHION SEGMENT CAME TO A CLOSE AFTER WE HAD BEEN INFORMED THAT CALVIN KLEIN NICK HILTON DONNA KARAN AND A LOT OF OTHER EXPERTS WOULD ALL LOVE TO DRESS MR CLINTON NOT BEFORE HOWEVER THE EARNEST COHOST BEGAN WORRYING ANEW THAT PEOPLE MIGHT THINK IT A SHAME SO MUCH TIME WAS SPENT TALKING ABOUT CLOTHES AND NOT BEFORE HE POINTED OUT AGAIN THAT PEOPLE WOULDN'T LISTEN TO A LEADER TALK ISSUES IF HE DIDN'T LOOK PRESENTABLE YES JUST THINK HOW FAR THAT RUMPLED UNTIDY FORMER BACKWOODSMAN ABRAHAM LINCOLN COULD HAVE GOT TALKING ISSUES IF ONLY HE HAD HAD CALVIN KLEIN TO DRESS HIM IMAGINE WHAT CALVIN OR DONNA COULD HAVE DONE FOR WINSTON CHURCHILL WHO LED A NATION THROUGH A WHOLE WAR WITHOUT EVER SPARING A MOMENT TO THINK ABOUT WAYS TO USE HIS BULK WITH THE FASHION SEGMENT OVER THE HOST TOOK UP THE SUBJECT OF ORGANIZED RELIGION WHICH GUEST GEORGE BARNA HEAD OF A RELIGION RESEARCH GROUP INFORMED US IS NOT WORKING WELL FOR TODAY'S GENERATION THAT'S BECAUSE MR BARNA OPINED PEOPLE NOW ARE LOOKING FOR WHATEVER WILL BRING THEM FULFILLMENT AND HELP THEM ALONG IN LIFE IN THE BOOMER'SEYE VIEW RELIGION FAILS TO PASS THE ACID TEST OF UTILITY ON THE LIGHTER SIDE CAME A REPORT FROM AN ABC CORRESPONDENT ABOUT THE TROUBLES PEOPLE HAVE EVERY JANUARY PUTTING THE RIGHT YEAR ON THEIR CHECKS THIS BEING AN AGE DEVOTED TO PROFESSIONAL EXPERTISE THE PRODUCERS BROUGHT A PSYCHOLOGIST AROUND TO DELIVER A SOLUTION TO THIS PROBLEM AND A GOOD ONE IT WAS TOO PUT SUGGESTED THIS EXPERT THE YEAR 1993 ON ALL YOUR CHECKBOOKS IN ADVANCE ONE CAN ONLY IMAGINE HOW MANY YEARS OF PSYCHOLOGICAL TRAINING IT TOOK TO BE ABLE TO FORMULATE THIS SOLUTION PROGRAMS SUCH AS THIS LIKE A LOT ELSE RECENTLY WRITTEN AND AIRED IN CELEBRATION OF THE POSTWAR GENERATION SUGGEST THAT THE BABY BOOMERS COULD USE SOME PUBLIC RELATIONS HELP THE TORCH HAS BEEN PASSED TO A NEW GENERATION ALL RIGHT AND ITS INFLUENCE WILL LEAVE NONE OF US UNSCATHED A LOT OF AMERICANS THIS ONE INCLUDED ARE EAGERLY LOOKING FORWARD TO SEEING WARREN CHRISTOPHER IN HIS DOCKERS 9301110019 930111 CONTINENTAL AIR CREDITORS GET REORGANIZATION PLAN WILMINGTON DEL A FEDERAL BANKRUPTCY JUDGE SENT CONTINENTAL AIRLINE'S REORGANIZATION PLAN TO ITS CREDITORS FOR APPROVAL IN WHAT IS LIKELY TO BE THE BEGINNING OF THE END OF THE CARRIER'S TWOYEAR STAY UNDER CHAPTER 11 PROTECTION JUDGE HELEN S BALICK RULED FRIDAY THAT CONTINENTAL'S DISCLOSURE STATEMENT ADEQUATELY EXPLAINS HOW THE COMPANY PLANS TO COMPENSATE THOUSANDS OF CREDITORS OWED ABOUT 2 BILLION COPIES OF THE PLAN WILL NOW BE SENT TO THE CREDITORS TO APPROVE OR REJECT ALTHOUGH ACCEPTANCE IS EXPECTED BECAUSE UNSECURED CREDITORS BACK THE PROPOSAL JUDGE BALICK DIDN'T RULE ON THE PLAN ITSELF UNDER WHICH AN INVESTMENT GROUP OF AIR CANADA AND AIR PARTNERS LP WILL BUY 55 OF CONTINENTAL FOR 450 MILLION CREDITORS WILL OWN THE REMAINING 365 OF STOCK IN THE CONTINENTAL AIRLINES HOLDINGS INC UNIT WITH THE REMAINING STOCK DIVIDED AMONG CONTINENTAL'S AIRCRAFT LESSORS THE PENSION BENEFIT GUARANTY CORP THE FEDERAL AGENCY THAT INSURES PENSIONS AND LATER POSSIBLY MANAGEMENT AND EMPLOYEES AIR PARTNERS IS THE INVESTMENT VEHICLE OF FORT WORTH TEXAS INVESTORS DAVID BONDERMAN AND JAMES COULTER WHO HELPED SPEARHEAD THE OFFER WITH AIR CANADA THE JUDGE SCHEDULED A FEB 23 HEARING TO RULE ON THE MERITS OF THE PLAN 9301110018 930111 TECHNOLOGY & HEALTH ESTROGEN WITH PROGESTERONE SAID TO CUT SOME CANCER RISK IN MENOPAUSAL WOMEN BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL MENOPAUSAL WOMEN WHO TAKE ESTROGEN REPLACEMENT DRUGS CAN SIGNIFICANTLY REDUCE THEIR RISK OF DEVELOPING A TYPE OF CANCER IF THEY ALSO TAKE ANOTHER HORMONE CALLED PROGESTERONE ACCORDING TO A NEW RESEARCH STUDY THE STUDY BY RESEARCHERS AT BOSTON UNIVERSITY'S SCHOOL OF MEDICINE HELPS CONFIRM THE GROWING BELIEF THAT WOMEN WHO TAKE BOTH HORMONES DON'T INCREASE THEIR RISK OF DEVELOPING CANCER OF THE ENDOMETRIUM THE TISSUE THAT LINES THE UTERUS MANY MENOPAUSAL WOMEN DON'T TAKE ESTROGEN BECAUSE OF FEAR THAT THE SYNTHETIC HORMONE CAN INCREASE THE RISK OF BREAST AND ENDOMETRIAL CANCER OUR STUDY SHOWS THAT INCLUDING PROGESTERONE WITH ESTROGEN MAKES A GREAT DEAL OF SENSE AT LEAST IN REGARDS TO CONCERNS ABOUT ENDOMETRIAL CANCER SAYS HERSHEL JICK COAUTHOR OF THE STUDY WHICH WAS LED BY HIS DAUGHTER SUSAN JICK DR HERSHEL JICK SAYS THEIR FINDING STILL NEEDS CONFIRMING RESEARCH AND LONGER FOLLOWUP STUDIES ON WOMEN WHO HAVE USED THE COMBINATION HORMONES INCREASINGLY WOMEN ARE TAKING SYNTHETIC ESTROGEN MEDICINES TO COUNTER A WIDE RANGE OF HEALTH PROBLEMS ASSOCIATED WITH MENOPAUSE WHEN THE BODY NATURALLY PRODUCES LESS OF THE FEMALE HORMONE MOREOVER RESEARCH STRONGLY SUGGESTS THAT MENOPAUSAL WOMEN WHO TAKE ESTROGEN REPLACEMENTS CAN REDUCE THEIR RISK OF HEART DISEASE AND OSTEOPOROSIS A BONETHINNING CONDITION COMMON AMONG OLDER WOMEN THE BIGGESTSELLING ESTROGEN REPLACEMENT PRODUCT IS THE PRESCRIPTION DRUG PREMARIN SOLD BY AMERICAN HOME PRODUCTS CORP'S WYETHAYERST DIVISION IN 1979 DR HERSHEL JICK REPORTED THAT WOMEN WHO TAKE ESTROGEN ALONE HAVE A SHARPLY HIGHER RISK OF DEVELOPING ENDOMETRIAL CANCER HIS FINDING AND OTHERS CAUSED GREAT CONCERN AND IT LED MANY DOCTORS TO COUNTER THE ENDOMETRIAL EFFECT OF THE HORMONE BY ADDING PROGESTERONE TO THE DRUG REGIMEN IN EFFECT MIMICKING THE BODY'S NATURAL MONTHLY PRODUCTION OF THE TWO HORMONES WHILE DOCTORS HAVE BELIEVED FOR SOME TIME THAT PROGESTERONE PROTECTS AGAINST THE CANCER THE NEW RESEARCH BY THE BOSTON UNIVERSITY GROUP IS THE STRONGEST YET TO SUGGEST THIS TO BE TRUE IN THE STUDY RESEARCHERS LOOKED AT WOMEN AGED 50 TO 64 TREATED BETWEEN 1979 AND 1989 AT GROUP HEALTH COOPERATIVE OF PUGET SOUND A HEALTH MAINTENANCE ORGANIZATION IN SEATTLE THE RESEARCHERS IDENTIFIED 172 CASES OF ENDOMETRIAL CANCER AND COMPARED USE OF THE HORMONES WITH 1720 SIMILAR WOMEN WHO DIDN'T HAVE CANCER THEY FOUND THAT WOMEN WHO USED ESTROGENS ALONE HAD A 65 TIMES GREATER RISK OF DEVELOPING CANCER THAN NONUSERS WHILE WOMEN WHO USED ESTROGEN PLUS PROGESTERONE DIDN'T HAVE AN ELEVATED RISK IN A REPORT PUBLISHED TODAY IN THE JOURNAL EPIDEMIOLOGY THE STUDY'S AUTHORS CAUTION THAT THEIR FINDINGS COVER ONLY ABOUT FIVE YEARS OF COMBINED THERAPY MOREOVER THEY SAY THEIR RESEARCH DOESN'T RESOLVE THE CONFLICTING DEBATE OVER WHETHER USE OF THE HORMONES INCREASES THE RISK OF BREAST CANCER SOME STUDIES HAVE SHOWN THAT HORMONE USE RAISES THE BREAST CANCER RISK SLIGHTLY WHILE OTHER FINDINGS HAVEN'T FOUND SUCH A RISK MARC DEITCH MEDICAL AFFAIRS DIRECTOR AT WYETHAYERST SAYS THE FINDING IS ONE MORE STUDY SUGGESTING THAT COMBINATION THERAPY CAN PREVENT THE DEVELOPMENT OF ENDOMETRIAL CANCER HE SAYS MOST AMERICAN DOCTORS ADVISE WOMEN TO COMBINE THE DRUGS AND THAT ONLY WOMEN WITHOUT A UTERUS SHOULD USE ESTROGEN ALONE SALES OF PREMARIN HAVE BEEN RISING SHARPLY AMERICAN HOME HAD ESTIMATED SALES OF ABOUT 675 MILLION IN 1992 FOR THE DRUG THE BOSTON UNIVERSITY STUDY WAS SUPPORTED BY A GRANT FROM A NUMBER OF DRUG MAKERS WHO SELL PROGESTERONE PRODUCTS WYETHAYERST ALSO SELLS A PROGESTIN PRODUCT CALLED CYCRIN THAT IS SIMILAR TO PROGESTERONE 9301110017 930111 ENTERPRISE TOTAL CHANGE OF DIRECTION CAN CREATE SECOND CHANCE OILLEASE FIRM SHIFTED TO LANGUAGE COURSES WHEN THINGS LOOKED BLEAK BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD ALBRIGHT KNOWS ALL ABOUT OIL AND GAS EXPLORATION LEASES HE USED TO ROAM THE BACK ROADS OF THE SOUTHWEST AND DICKER WITH LANDOWNERS OVER THE DRILLING RIGHTS TO THEIR PROPERTY AND HE CUT SOME PRETTY PROFITABLE DEALS SUCH AS A CONTRACT HE BOUGHT FOR 5000 FROM A UTAH FARMER ONE MORNING AND SOLD TO AN OIL GIANT FOR 25000 IN THE AFTERNOON SO WHY IS MR ALBRIGHT NOW PEDDLING ENGLISHLANGUAGE INSTRUCTIONAL VIDEOTAPES TO THE JAPANESE THROUGH HIS SALT LAKE CITY COMPANY SIMPLE THE MARKET FOR OIL LEASES COLLAPSED THE ENTREPRENEUR DECIDED THAT TO SAVE HIS FIRM HE WOULD HAVE TO GRAB THE FIRST FEASIBLE OPPORTUNITY EVEN IF IT WAS IN A BUSINESS HE KNEW NOTHING ABOUT SO FAR THE VENTURE IS PROSPERING AND THE REASON CAN GIVE HOPE TO BUSINESS OWNERS ANYWHERE WHO STRUGGLE AGAINST AN ADVERSE TURN OF EVENTS A TRUE ENTREPRENEUR CAN SELL JUST ABOUT ANYTHING SAYS WILLIAM WARD A BUSINESS PROFESSOR AT SUSQUEHANNA UNIVERSITY IN SELINSGROVE PA IN HIS VIEW EXPERTISE ABOUT A GIVEN PRODUCT OR MARKET IS LESS IMPORTANT THAN ENTREPRENEURIAL VERVE THIS HE DEFINES IN PART AS A DEEP FAITH THAT YOU CAN DO IT UNBRIDLED ENTHUSIASM A SINGLE FOCUS THE ABILITY TO ORGANIZE AND PERHAPS MOST IMPORTANT THE INCLINATION TO CHASE AFTER OPPORTUNITIES MR ALBRIGHT CERTAINLY SEIZES OPPORTUNITIES THE FORMER STOCKBROKER GOT THE OIL BUG IN 1973 AFTER THE ARAB OIL EMBARGO DROVE PETROLEUM PRICES INTO THE STRATOSPHERE TO LEARN THE TRADE HE WORKED FREE FOR SIX MONTHS ASSISTING AN ATTORNEY WHO SPECIALIZED IN OIL LEASING THEN HE ESTABLISHED HIMSELF AS AN INDEPENDENT AGENT ACQUIRING OIL AND GAS DRILLING RIGHTS AND LEASES FOR OIL COMPANIES IN RURAL AREAS OF UTAH AND NEIGHBORING STATES IN 1980 HE AND A FRIEND FORMED TWIN CREEK EXPLORATION CO IN SALT LAKE CITY INTEREST IN THE VENTURE WAS SO INTENSE THAT THE TWO MEN SOLD OUT A 25 MILLIONSHARE OFFERING AT TWO CENTS A SHARE IN ONE DAY RAISING 500000 THE COMPANY BOUGHT DRILLING RIGHTS AND RESOLD THEM TO THE MAJORS OFTEN IN UNLIKELY PLACES THE BOOM WAS OUT OF CONTROL HE SAYS THE FIRST WARNING SIGNAL FOR TWIN CREEK EXPLORATION CAME IN 1984 WHEN THE OIL PRICE DROPPED TO ABOUT 25 FROM 35 A BARREL MR ALBRIGHT SAYS THE DECLINE DIDN'T STOP OIL EXPLORATION BUT IT DID BRING THE TRADING OF LEASES TO A STANDSTILL HE ADDS SO MR ALBRIGHT AND HIS FRIEND WHO HAS SINCE RETIRED REFOCUSED THEIR ENERGIES THEY STAYED IN THE OIL BUSINESS HOWEVER THE COMPANY BEGAN BUYING STAKES IN LANDOWNERS' ROYALTY RIGHTS AND EVEN GOT INVOLVED IN SOME DRILLING OPERATIONS A FAVORABLE MENTION IN A NATIONAL MAGAZINE BROUGHT TWIN CREEK EXPLORATION SEVERAL THOUSAND NEW SHAREHOLDERS THEN THE SECOND BLOW STRUCK IN 1986 WHEN OIL FELL TO 12 A BARREL WE WERE GONERS MR ALBRIGHT SAYS BUT HE DECIDED TO KEEP TWIN CREEK EXPLORATION ALIVE AS A CORPORATE SHELL FIGURING IT WOULD BE A QUICK AND INEXPENSIVE VEHICLE FOR A PRIVATELY HELD COMPANY SEEKING TO GO PUBLIC HE REALIZED THAT A MERGER WITH SUCH A COMPANY COULD TAKE TWIN CREEK FAR AFIELD FROM THE INDUSTRY HE KNEW BUT IT WOULD ALSO PROVIDE THE COMPANY AND ITS SHAREHOLDERS WITH A NEW LIVELIHOOD AND PRESERVE HIS INDEPENDENCE IN A LITTLE MORE THAN A YEAR MR ALBRIGHT INTERVIEWED EXECUTIVES OF 140 COMPANIES HE SAYS TWICE HE ALMOST TOOK THE PLUNGE ULTIMATELY HE JOINED FORCES WITH AN OLD FRIEND ERIC JAEHNE INSTEAD OF LINKING UP WITH ANOTHER CORPORATION MR JAEHNE WHO SAYS HE ONCE MADE AND LOST A SMALL FORTUNE IN THE WATERBED BUSINESS WAS ALSO SCOUTING AROUND FOR A NEW NICHE AND THOUGHT HE HAD FOUND ONE HE WANTED TO PUT AN ENGLISHLANGUAGE COURSE ON VIDEO AND MARKET IT TO THE NATION'S BURGEONING HISPANIC POPULATION MR ALBRIGHT BOUGHT THE IDEA IN EARLY 1991 THE TWO MEN STRUCK UP A DEAL TO STEER TWIN CREEK EXPLORATION IN A NEW DIRECTION USING 70000 FROM THE COMPANY'S TREASURY AND 56000 FROM THE SALE OF CONVERTIBLE DEBENTURES MR JAEHNE DESIGNED THE COURSE 18 ONEHOUR LESSONS ON AUDIO AND VIDEOTAPES THAT RETAILS FOR ABOUT 900 INITIAL SALES WERE IN THE US AND MEXICO BUT MR ALBRIGHT'S BIGGEST COUP WAS TALKING A NEIGHBOR BY THE NAME OF KENT DERRICOTT WHO HAPPENS TO BE A TELEVISION CELEBRITY IN JAPAN INTO NARRATING THE LESSONS AND MARKETING THE TAPES IN THAT COUNTRY THE RESUSCITATED COMPANY THOUGH TINY IS GROWING SALES LAST YEAR TOTALED 140000 INCLUDING 55000 IN THE FINAL TWO MONTHS AND ARE PROJECTED TO REACH AT LEAST 500000 IN 1993 MR ALBRIGHT SAYS THAT COMPARES FAVORABLY WITH A PEAK OF 150000 IN ANNUAL REVENUES IN TWIN CREEK EXPLORATION'S PREVIOUS INCARNATION THE COMPANY IS DOING BUSINESS AS LINGUISTIX AND PLANS TO CHANGE ITS CORPORATE NAME TO THAT SOON IT HASN'T BEEN ALL SMOOTH SAILING OF COURSE BOTH PARTNERS SAY THAT OVERCOMING CULTURE GAPS WITH BOTH SPANISH AND JAPANESE SPEAKERS HAS BEEN PAINFUL THEY SAY THEY MADE A BIG BLUNDER IN TRYING AT FIRST TO BUILD A DEALER NETWORK WITH PEOPLE UNFAMILIAR WITH THE MARKET AND THEY WERE TOO QUICK TO EXTEND CREDIT TO SALES REPRESENTATIVES THEY SAY BUT THE TWO MEN HAVE LEARNED SOME LESSONS FROM JUMPING INTO UNCHARTED TERRITORY DON'T STAY TOO LONG IN A DYING INDUSTRY ADVISES MR ALBRIGHT WHO IS 59 YEARS OLD BITE THE BULLET ADDS MR JAEHNE 45 BE WILLING TO LEARN ABSOLUTELY REFUSE TO GIVE UP THE PRODUCT CAN CHANGE BUT THE MARKETING SKILLS REMAIN THE SAME PROVIDE A QUALITY PRODUCT AT A GOOD PRICE PROVIDE GOOD SERVICE AND FOLLOW IT UP AFTERWARDS IF THE ENGLISHLANGUAGE VIDEO VENTURE EVER FALLS ON HARD TIMES HE FIGURES THAT PHILOSOPHY WILL HELP HIM BOUNCE BACK AFTER ALL HE SAYS I'VE GOT A FILE OF 15 OTHER BUSINESSES JUST ACHING TO GET STARTED 9301110016 930111 OTC FOCUS MARKET COULD BE PRESSURED BY TENSIONS IN MIDDLE EAST BOND PRICE WEAKNESS BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER STOCK MARKET COULD FACE PRESSURE IN THE DAYS AHEAD AS INVESTORS WORRY ABOUT RECENT WEAKNESS IN BOND PRICES AND MIDDLE EAST TENSIONS THE NASDAQ COMPOSITE INDEX FELL ONE POINT FRIDAY OR 015 TO 67721 THE INDEX HAD BEEN DOWN AS MUCH AS 563 POINTS DURING THE DAY BEFORE GAINING A BIT IN THE AFTERNOON DECLINERS OUTNUMBERED ADVANCERS 1435 TO 1154 ON TOTAL VOLUME OF 2328 MILLION SHARES DOWN FROM THURSDAY'S 2969 MILLION SHARES TRADERS SAID THE MARKET MIGHT SLIDE FURTHER UNDER PRESSURE FROM PROFITTAKING ON SOME OF THE RECENT GAINS IN NASDAQ ISSUES IT'S OUTRIGHT PROFITTAKING BUT IRAQ GIVES THEM AN EXTRA REASON TO SELL STOCKS SAID JAIME DAVILA SENIOR TRADER AT MABON SECURITIES CORP WHAT'S SPOOKING PEOPLE MORE ARE THE BOND YIELDS THAT GIVES THEM ANOTHER REASON TO LOCK IN SOME PROFITS MANY INVESTORS DON'T APPEAR ANXIOUS TO STEP IN AND BUY SAYS HEDI REYNOLDS A MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO THERE'S WEAKNESS IN THE BOND MARKET AND ON THE BIG BOARD SO IT'S HARD FOR THE NASDAQ TO BUCK THE TREND THE DOW JONES INDUSTRIAL AVERAGE FRIDAY DROPPED 1729 OR 053 TO 325167 FRIDAY'S MOST ACTIVE ISSUE INTEL FELL 7/8 TO 98 3/4 ON 38 MILLION SHARES THE GIANT SEMICONDUCTOR COMPANY HAD GAINED 15 DURING A THREEDAY RUNUP INTEL HAS SURFACED AS ONE OF THE MARKET LEADERS AND ANALYSTS HAVE PREDICTED THE STOCK COULD GO AS HIGH AS 130 IN THE NEXT 12 MONTHS INVESTORS DECIDED TO TAKE PROFITS FRIDAY IN SEVERAL TECHNOLOGY STOCKS MICROSOFT EASED 1/8 TO 87 1/8 AND ORACLE DROPPED 1/4 TO 29 7/8 THE COMPUTER NETWORKING COMPANY NETWORTH DECLINED FOR A SECOND CONSECUTIVE DAY FALLING 5/8 TO 30 3/8 BUT TWO OTHER TECHNOLOGY STOCKS FARED BETTER APPLE COMPUTER CLIMBED 1 1/4 TO 62 1/4 AND NOVELL GAINED 1/8 TO 30 1/4 BIOTECHNOLOGY BELLWETHER STOCKS GAINED BACK SOME OF THEIR LOSSES FROM EARLIER IN THE WEEK AMGEN ROSE 1 3/4 TO 69 1/2 AND SYNERGEN ADVANCED 1 3/4 TO 61 1/4 BIOGEN JUMPED 4 TO 43 1/4 AFTER BEAR STEARNS & CO BIOTECH ANALYST DAVID MOLOWA UPGRADED HIS RATING TO STRONG BUY FROM BUY AND SEVERAL OTHER ANALYSTS AFFIRMED POSITIVE VIEWS OF THE COMPANY A&W BRANDS TUMBLED 2 1/4 TO 29 1/2 THE COMPANY SAID IT HAS APPROVED A 3FOR2 COMMON STOCK SPLIT PAYABLE FEB 16 TO STOCK OF RECORD FEB 1 THE COMPANY ESTIMATED LATE FRIDAY THAT FOURTHQUARTER EARNINGS WOULD INCH UP TO 49 CENTS A SHARE COMPARED WITH 48 CENTS A YEAR EARLIER THE COMPANY SAID EARNINGS FOR THE PERIOD WERE LOWERED BY THREE CENTS A SHARE BECAUSE OF INVESTMENTS IN NEW TETLEY AND EVERLAST PRODUCTS TAKECARE INC CLIMBED 3 TO 42 1/2 THE CONCORD CALIF MANAGEDCARE COMPANY SAID IT WAS COMFORTABLE WITH ANALYSTS' 1993 EARNINGS ESTIMATES OF 295 A SHARE ESSEF CORP FELL 1 7/8 TO 11 3/8 AFTER THE COMPANY SAID IT EXPECTS TO REPORT A LOSS WHEN IT DISCLOSES FISCAL 1993 FIRSTQUARTER RESULTS WITHIN THREE WEEKS THE CHARDON OHIO COMPANY ALSO SAID FIRSTQUARTER RESULTS WILL INCLUDE CERTAIN NONRECURRING EXPENSES THAT ON A PRETAX BASIS AMOUNT TO 725000 ESSEF MANUFACTURES PRODUCTS MADE FROM ENGINEERED PLASTICS AND SPECIALIZED POLYMERS COMBINED WITH GLASS FIBER ENHANCED IMAGING TECHNOLOGIES PLUNGED 1 3/4 TO 7 1/2 THE IRVINE CALIF COMPANY SAID LATE THURSDAY AFTERNOON THAT ITS FOURTHQUARTER OPERATING RESULTS WILL BE HURT BY LOWER OPERATING PROFIT AT ITS OPTICAL DEVICES UNIT WHICH PRODUCES ANTIGLARE ANTIRADIATION AND CONTRAST ENHANCEMENT OPTICAL FILLERS FOR COMPUTER MONITORS THE COMPANY'S OTHER UNIT VARIX PROVIDES ANGIOGRAPHY FILM TO CARDIAC CATHETERIZATION LABS BEAUTICONTROL COSMETICS TOPPLED 1 3/4 TO 8 1/2 AFTER REPORTING FOURTHQUARTER EARNINGS OF ONE CENT A SHARE COMPARED WITH 14 CENTS A YEAR EARLIER THE DALLAS MARKETER OF COSMETICS REPORTED EARNINGS FOR THE YEAR OF 65 CENTS A SHARE DOWN FROM 71 CENTS A SHARE LAST YEAR BEAUTICONTROL SAID FOURTHQUARTER RESULTS WERE HURT BY MORE THAN 12 CENTS A SHARE FROM COSTS ASSOCIATED WITH NEW PROGRAMS 9301110015 930111 COMMODITIES GOLD'S DECLINE TO 7YEAR LOW PROMPTS INDUSTRY DEBATE OVER KEY QUESTION HOW LOW WILL IT GO BY WARREN GETLER AND NEIL BEHRMAN STAFF REPORTERS OF THE WALL STREET JOURNAL THERE ISN'T ANY SALVATION IN SIGHT FOR GOLD AFTER YEARS OF PLUNGING GOLD PRICES EVEN THE WORLD'S MOST CONSERVATIVE INVESTORS HAVE TURNED THEIR BACK ON THE ONCE PRECIOUS METAL THERE WASN'T A SINGLE SWISS PORTFOLIO MANAGER WHO RECOMMENDED GOLD IN JANUARY'S NEW YEAR PORTFOLIOS COMPLAINS ALFRED SCHNEIDER SENIOR VICE PRESIDENT IN PRECIOUS METALS AT SWISS BANK CORP IN ZURICH IT WAS JUST IGNORED GOLD ONCE A FAVORITE INFLATION HEDGE AND SAFE HAVEN IN TIMES OF TURMOIL IS SELLING NEAR A SEVENYEAR LOW THE DEBATE AMONG GOLD TRADERS AND ANALYSTS NOW ISN'T SO MUCH OVER WHEN GOLD WILL RECOVER ITS LOST LUSTER AS HOW MUCH LOWER IT WILL FALL THE ANSWERS SHOULD WORRY ANYONE WITH A SIZABLE INVESTMENT IN GOLD EXCEPT FOR PERIODIC RALLIES GOLD HAD BEEN ONE SORRY STORY THROUGHOUT THE 1980S AND THE STORY IN THE '90S IS THAT THERE'S NO REASON TO BELIEVE THAT IT WILL PICK UP SAYS DAVID KELLY A SENIOR ECONOMIST AT THE BOSTON CO AFTER HITTING MORE THAN 500 AN OUNCE IN THE AFTERMATH OF THE 1987 STOCK MARKET CRASH GOLD PRICES HAVE SKIDDED MORE THAN 30 PRICES FELL 6 IN 1992 TO 33310 AN OUNCE AND JUST LAST WEEK GOLD STUMBLED TO 328 AN OUNCE A SEVENYEAR LOW BEFORE CLOSING THE WEEK ON FRIDAY AT 32910 AN OUNCE NOW MARKET EXPERTS AND ECONOMISTS PREDICT IT WILL CONTINUE TO SLIDE TO AROUND 320 AN OUNCE AND MAY TEST THE NETHERWORLD OF 300 AN OUNCE AND BELOW SOMETIME THIS YEAR GOLD AT 300 IS CONCEIVABLE BUT PROBABLY NOT IN A STRAIGHT DOWNTURN IT'LL BE TRENCH WARFARE SAYS BERNARD SAVAIKO WHO WATCHES GOLD AND OTHER PRECIOUS METALS FOR PAINEWEBBER IN NEW YORK SOME BEARS GO SO FAR AS TO PREDICT THAT GOLD COULD SKID TO 1985 LOWS OF AROUND 280 AN OUNCE AND EVEN THE MOST OPTIMISTIC BULLS CONCEDE THAT A RALLY PERHAPS IN THE SECOND QUARTER WOULD TAKE THE METAL TO ONLY ABOUT 350 TO 370 AN OUNCE BEFORE IT ONCE AGAIN RETREATS THE GROWING NUMBERS OF GOLD BEARS CITE A HOST OF FUNDAMENTAL REASONS THAT GOLD WILL EITHER HOVER NEAR ITS CURRENT PRICES OR SLIP LOWER IN COMING MONTHS WORLD ECONOMIC GROWTH IS SLOW INFLATION IS TAME GOLD SUPPLIES ARE PLENTIFUL AND INVESTORS ARE LOOKING TO PUT MONEY INTO ASSETS THAT NOT ONLY GAIN IN PRICE BUT PRODUCE INCOME AS WELL LOW INFLATION IS THE MOST OFTENCITED JUSTIFICATION AMONG BEARS FOR SHUNNING THE METAL INFLATION IN THE US THE ONLY MAJOR WESTERN ECONOMY SHOWING SIGNS OF ECONOMIC STRENGTH IS RUNNING AT ABOUT 3 ANNUALLY FAR FROM THE DOUBLEDIGIT LEVELS THAT IN THE PAST HAVE DRIVEN NERVOUS INVESTORS TO GOLD EVEN THE PROSPECT OF MORE ECONOMIC STIMULUS FROM A NEW CLINTON ADMINISTRATION ISN'T RAISING THE SPECTER OF HIGHER INFLATION IN THE BOND MARKET THE BEST BAROMETER OF INFLATIONARY FEARS INVESTORS TODAY ARE NOT GUIDED BY AN INFLATIONARY PSYCHOLOGY MR KELLY SAYS OTHER ANALYSTS ADD THAT EVEN IF INFLATION BECOMES A CONCERN A YEAR OR SO FROM NOW THE EXPLOSION OF FINANCIAL FUTURES MARKETS FOR CURRENCIES BONDS AND STOCKS PROVIDES INVESTORS WITH EFFECTIVE ALTERNATIVES TO GOLD'S ROLE AS AN INFLATION HEDGE WHAT'S MORE GOLD'S ROLE AS A HAVEN IN TIMES OF GEOPOLITICAL CHAOS HAS BEEN CEDED CHIEFLY TO THE DOLLAR AND THE MARK TWO MAJOR RESERVE CURRENCIES THAT OFFER INVESTORS SECURITY AND A WIDE RANGE OF INVESTMENT INSTRUMENTS THE LAST TIME GOLD REACTED POSITIVELY TO A WORLD CRISIS WAS THE 1981 SHOOTING OF ANWAR SADAT OBSERVES WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH IN NEW YORK EVERY TIME THERE'S BEEN A CRISIS SINCE WE'VE HAD A KNEEJERK RALLY THAT'S PROVEN LITTLE MORE THAN A SELLING OPPORTUNITY EVEN THE PRICE VOLATILITY THAT ONCE MADE GOLD A GOOD SPECULATIVE PLAY FOR NIMBLE TRADERS IS MUTED TODAY DAILY PRICE SWINGS OF 5 AN OUNCE ARE CONSIDERED SIGNIFICANT WHILE MOVES OF 30 A DAY WERE COMMON IN THE EARLY 1980S OVER THE PAST TWO YEARS THE ANNUAL TRADING RANGE FOR GOLD PRICES WAS ONLY 9 COMPARED WITH SWINGS OF 20 TO 40 IN THE FIRST HALF OF THE EIGHTIES THE SUPPLYANDDEMAND PICTURE FOR GOLD IS A LITTLE LESS CLEAR BULLS POINT OUT THAT FOR THE PAST THREE YEARS DEMAND FROM JEWELERS AND OTHER INDUSTRIAL USERS HAS COMFORTABLY EXCEEDED WORLD GOLD PRODUCTION AND IS LIKELY TO DO SO AGAIN IN 1993 LAST YEAR FOR EXAMPLE DEMAND FOR GOLD SURGED TO AN ESTIMATED 82 MILLION OUNCES WELL ABOVE THE 57 MILLION OUNCES OF WESTERN MINING OUTPUT JEWELRY MANUFACTURERS IN ASIA HAVE BEEN ESPECIALLY AGGRESSIVE BUYERS AND A WORLDWIDE ECONOMIC RECOVERY WOULD FURTHER SPUR DEMAND WHILE GOLD PRODUCTION HAS BEEN GROWING DURING THE PAST FEW YEARS THE RATE OF GROWTH IS SLOWING THAT'S MOSTLY DUE TO PROBLEMS AT MINES AND IN DISTRIBUTION IN THE FORMER SOVIET UNION AND THESE ROADBLOCKS AREN'T LIKELY TO BE SOLVED SOON THOSE TRENDS SHOULD RESULT IN A RECOVERY OF GOLD PRICES LATER THIS YEAR SAYS MARK LETTES VICE PRESIDENT OF AMAX GOLD INC A COLORADOBASED MINING COMPANY GOLD WILL DO TERRIBLY IN THE FIRST HALF BUT WILL LOOK PRETTY GOOD IN THE SECOND HE PREDICTS IT WILL BE SUBSTANTIALLY HIGHER AT THE END OF THE YEAR THAN IT IS RIGHT NOW BUT BEARS COUNTER THAT SEVERAL CENTRAL BANKS MAJOR HOLDERS OF GOLD RESERVES RECENTLY BECAME BIG SELLERS IN THE GOLD MARKET LAST YEAR CENTRAL BANKS DUMPED ABOUT 145 MILLION OUNCES OF GOLD ON THE MARKETS A 326 INCREASE OVER 1991 CENTRAL BANK SALES ACCORDING TO ESTIMATES BY GOLD FIELDS MINERALS SERVICES A CONSULTING GROUP OWNED BY US SOUTH AFRICAN AND AUSTRALIAN MINING COMPANIES AND THERE'S PLENTY MORE WHERE THAT CAME FROM TOGETHER CENTRAL BANKS STILL HOLD SOME 900 MILLION OUNCES OF GOLD IN RESERVE ACCORDING TO THE INTERNATIONAL MONETARY FUND ADDING TO THE SUPPLY CONCERNS ARE REPORTS THAT MIDDLE EAST SYNDICATES BASED IN EUROPE ARE SELLING GOLD AT LEVELS AROUND 330 AN OUNCE UNDERMINING WHAT LITTLE BUOYANCY REMAINS IN THE MARKET STILL SOME ANALYSTS CAUTION THAT GOLD AT LEVELS BELOW 300 WOULD PROBABLY TRIGGER SOME FURTHER CUTBACKS IN PRODUCTION WHICH COULD HELP STABILIZE PRICES BELOW 300 PRODUCERS WOULD FIND IT UNECONOMICAL TO MINE THE PRECIOUS COMMODITY EXPERTS SAY MOREOVER THEY ADD SOUTH AFRICA'S RESERVE BANK WOULD PROBABLY COME IN AS A BUYER TO PROP UP GOLD ONE OF THE MAINSTAYS OF THAT NATION'S ECONOMY THEY ACKNOWLEDGE HOWEVER THAT THE CRISISRIDDEN SOUTH AFRICAN ECONOMY PROVIDES LIMITED RESOURCES FOR SUCH INTERVENTION LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK GRAINS & SOYBEANS THE AGRICULTURE DEPARTMENT IS SLATED TO ISSUE ITS FINAL REPORT ON THE US SOYBEAN AND CORN HARVESTS AFTER THE CLOSE OF TRADING TOMORROW GRAIN TRADERS GENERALLY EXPECT THE DEPARTMENT TO RAISE ITS PREVIOUS ESTIMATE FOR A 933 BILLION BUSHEL CORN HARVEST BY UP TO 50 MILLION BUSHELS THE GOVERNMENT IS EXPECTED TO LOWER ITS ESTIMATE FOR A 217 BILLION BUSHEL SOYBEAN HARVEST BY AS MUCH AS 15 MILLION BUSHELS RUSSIA'S SWELLING GRAIN LOAN PROBLEM IS EXPECTED TO WEIGH ON THE GRAIN MARKETS BY FRIDAY RUSSIA HAD MISSED 147 MILLION IN PAYMENTS FOR USBACKED GRAIN LOANS RUSSIA IS SUSPENDED FROM THE AGRICULTURE DEPARTMENT'S CREDIT GUARANTEE PROGRAM AS LONG AS IT IS IN DEFAULT UNDER A PROGRAM DESIGNED TO BOOST US GRAIN EXPORTS THE AGRICULTURE DEPARTMENT GUARANTEES REPAYMENT OF LOANS THAT CERTAIN NATIONS ARRANGE FOR IMPORTING US COMMODITIES SUGAR ANALYSTS SAID SUGAR FUTURES PRICES ARE SET TO CONTINUE TO SURGE THIS WEEK FOLLOWING A BREACH OF THE 850 CENTS A POUND RESISTANCE LEVEL ON FRIDAY AT THE COFFEE SUGAR AND COCOA EXCHANGE SUGAR FOR MARCH DELIVERY WHICH CLOSED 44 CENTS HIGHER AT 860 CENTS ON FRIDAY IS BEING PROPELLED BY A RECENTLYRELEASED REPORT THAT SUGGESTS THE 1993 WORLD CROP WILL BE SMALLER THAN PREVIOUSLY FORECAST THE REPORT BY GERMAN RESEARCH GROUP FO LICHT IS WIDELY FOLLOWED BY SUGAR FUTURES TRADERS AND ANALYSTS WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH SAID THE BREACH OF 850 CENTS PORTENDS A MOVE UP TO THE NEXT RESISTANCE LEVEL IN THE 920 AREA SANDRA KAUL A SUGAR FUTURES ANALYST WITH SHEARSON LEHMAN BROTHERS SAID THE MARKET'S FIRMER TONE IS THE RESULT OF HEAVY SHORTCOVERING BY COMMODITY FUNDS AND OTHER LARGE INVESTORS THAT HAD BEEN EXPECTING PRICES TO FALL MS KAUL CAUTIONED THAT FURTHER PRICE RISES ARE LIKELY TO BE RESTRAINED BY PRODUCERS' SELLING OF FUTURES CONTRACTS SHE PREDICTED THAT THE NEXT RESISTANCE LEVEL WILL BE 880 CENTS TO NINE CENTS 9301110014 930111 SMOKERS UNDER SIEGE HUDDLE TOGETHER AGAINST A CHILL WIND THERE IS LITTLE LEFT TO DO NOW BUT TO LOITER IN DOORWAYS AS THE TIMES PASS THEM BY BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL DAVID SNEAD'S BARE FINGERS BRIGHT PINK FROM THE COLD CLUTCH TIGHTLY TO A COFFEE CUP AND TO WHAT'S LEFT OF HIS BURNING MARLBORO HE COULD RETREAT TO THE CAFE JUST STEPS AWAY NEAR A PRETTY BOSTON PARK BUT MR SNEAD PREFERS TO STAND SHIVER AND SMOKE AMID THE STREWN BUTTS AND CIGARETTE ASHES OUTSIDE HIS PLACE OF WORK THE NEW ENGLAND TELEPHONE BUILDING WHY HERE GOSSIP SAYS MR SNEAD MOTIONING TO THE SMOKERS CHATTERING IN SMALL GROUPS AROUND HIM WE LIVE ON IT YOU FIND OUT EVERYTHING THAT HAPPENS IN YOUR DEPARTMENT ADDS GLENN JOHNSON A COWORKER DRAGGING ON A KOOL LIGHT WE KNOW IT ALL BEFORE IT'S ANNOUNCED MESSRS SNEAD AND JOHNSON ARE PART OF A GROWING THRONG OF OUTCAST SMOKERS HUDDLED IN DOORWAYS OF SMOKEFREE OFFICES EVERYWHERE YEARS OF ANTISMOKING FERVOR CAPPED BY LAST WEEK'S DECISION BY THE ENVIRONMENTAL PROTECTION AGENCY TO LINK SECONDHAND SMOKE TO CANCER HAVE PUT MORE AND MORE OF THE GREAT INDOORS OFFLIMITS TO SMOKERS WHILE SMOKEFREE BUILDINGS ARE IMPROVING INDOOR AIR QUALITY THEY HAVE ALSO ENLARGED THE FUMY RANKS OF THE DOORWAY PEOPLE AND TIGHTENED THEIR UNITY OF PURPOSE THERE'S AN EMPATHY THAT SMOKERS HAVE FOR ONE ANOTHER SAYS GREG GILMARTIN HIS FROSTED BREATH PERFUMED WITH TOBACCO OUTSIDE THE ONE POST OFFICE SQUARE OFFICE BUILDING IN BOSTON IT'S NOT EXACTLY CAMARADERIE BUT WE ARE CONNECTED THERE'S A SUBTLE TRUST THAT EXISTS SO YOU MIGHT SHARE SOMETHING WITH A SMOKER THAT YOU WOULDN'T WITH SOMEBODY ELSE AT THE PORTALS OF TOWERS ACROSS URBAN AMERICA SMOKERS ARE NETWORKING IN THE DOORWAY THEY FIND NOT ONLY FAMILIAR FACES READY TO EXCHANGE RUMORS OVER A QUICK CIGARETTE THEY CAN ALWAYS FIND A LIGHT AND OCCASIONALLY MORE THAN THAT THE DOORWAY PEOPLE KNOW THEY ARE DOING SOMETHING THAT MAY EVENTUALLY KILL THEM MANY SAY THEY WANT TO QUIT OR WANT TO WANT TO BUT IN THE MEANTIME THEIRS IS THE BITTERSWEET AFFINITY OF THE EXILED A PARIAH SOCIETY OF GUILTY PLEASURE TIM AN ARCHITECT IN CHICAGO SAYS FELLOW SMOKERS ON HIS FLOOR WILL LEAN INTO HIS OFFICE AND SAY HOW 'BOUT A PSO MEETING THE INITIALS STAND FOR PUBLIC SMOKERS ORGANIZATION THEY THEN HEAD DOWNSTAIRS AND GATHER IN AN ALLEY OUTSIDE HIS BUILDING WE DON'T ALLOW ANYONE TO MEET WITH US UNLESS THEY'RE SMOKING OR AT LEAST HOLDING A CIGARETTE HE SAYS A CIGARETTE ISN'T ALL TIM IS HITTING ON HE FINISHES UP HIS SMOKE WITH A YOUNG WOMAN IN THE ALLEY YOU KNOW WE MET IN THE OFFICE HE SAYS WATCHING HER GO BACK INSIDE BUT THE SMOKING TETEATETES HAVE REALLY HELPED OUT HE SAYS CONFIDENTIALLY LOWERING HIS VOICE ASKED FOR HIS FULL NAME TIM RAISES HIS EYEBROWS AND SAYS I CAN'T DO THAT I'M MARRIED LOVE BLOOMS AND WILTS AMONG THE ASHES PETER THIBEAULT A FIDELITY INVESTMENTS EMPLOYEE WHO IS DIVORCED SAYS HE MET HIS CURRENT GIRLFRIEND OUTDOORS ON A SMOKING BREAK BUT KELLY KING AN ADMINISTRATIVE ASSISTANT DISMISSED OUT OF HAND A STOCKBROKER WHO ASKED FOR A DATE IN THE OUTDOOR SMOKING REFUGE AT ATLANTA'S PIEDMONT CENTER HIS BREATHLESS FUTILE PICKUP LINE I DIDN'T KNOW YOU SMOKED THIS TIME OF YEAR THE DOORWAY PEOPLE SEEM TO COME DOWN WITH A LOT OF COLDS BOSSES AREN'T ALWAYS INDULGENT OF WORKERS CONSTANTLY TAKING SMOKING BREAKS SO THE OFFENDERS WILL SLIP OUT FURTIVELY AND COATLESS AS IF TO ANSWER A CALL OF NATURE WHICH IN A SENSE IS TRUE THEY SAY SMOKING IS DANGEROUS TO YOUR HEALTH SAYS DANNY CUPICHA A SYSTEMS ANALYST WHO LIGHTS UP OUTSIDE TWO PENN PLAZA IN NEW YORK WELL IT IS YOU CAN CATCH PNEUMONIA OUT HERE BUT FOR SOME DENIZENS OF THE DOORWAY PUTTING ON A BRAVE FACE AGAINST THE COLD SEEMS ALMOST A PART OF THE UNHEALTHY RITUAL IT DOESN'T BOTHER US SAYS AUSTIN LONBERG A 63YEAROLD PIPE SMOKER STANDING IN SHORT SLEEVES IN THE 20DEGREE AIR ON CHICAGO'S WEST MONROE STREET NOT TOO BAD TODAY INSISTS A COATLESS CHARLEY BARRY HUNCHING UP HIS SHOULDERS AS HE PUFFS OUTSIDE A BOSTON OFFICE OF FIDELITY DISTINCT SUBCULTURES HAVE EVOLVED MR BARRY AND OTHERS OF HIS ILK GATHER AROUND FRONT DOORS THEY SEEM TO BE OPEN AND GARRULOUS THEY PEOPLEWATCH BETWEEN PUFFS THE TWO OF US LOVE WOMEN SAYS JOE MALONEY A SMOKING PAL OF MR GILMARTIN'S IN BOSTON AND THIS IS AN INTERESTING SPOT FOR WATCHING WOMEN BACKDOOR HUDDLERS TEND TO BE FIDGETY AND LESS TALKATIVE MANY OF THEM SAY THEY AREN'T SUPPOSED TO BE OUT ON BREAK THEN THERE ARE THE CIRCLERS LONERS WHOSE CONCERN FOR THEIR GOOD HEALTH IS MADE MANIFEST BY WALKING BRISKLY AROUND BUILDINGS I'M GETTING MY EXERCISE ANNOUNCES ONE HAPPY AEROBIC CIRCLER A WISP OF SMOKE TRAILING HIM AS HE LOPES PAST THE DOORWAY OF NEW ENGLAND TELEPHONE AT 830 IN THE MORNING THE SMOKING CIRCLE AT THE ATLANTA CENTER IS NATURECONSCIOUS A LOT OF US TALK ABOUT THE BIRD NEST IN THE TREE SAYS SHELLY DOBBS A PROPERTY MANAGER WHO POINTS TO A SLIM DOGWOOD BELOW A SECONDFLOOR WALKWAY WHERE SMOKERS GATHER THE SAME RED ROBIN COMES TO LAY EGGS EVERY YEAR WE TALK ABOUT HOW THE EGGS ARE HATCHING HOW THE BABIES ARE DOING THE SMOKERS WERE SAD TO SEE THAT TWO CHICKS THIS YEAR DIDN'T SURVIVE DOORWAY PEOPLE SAY THEIR GATHERINGS CAN BE MORE PRODUCTIVE THAN THEY APPEAR I DO QUITE A BIT OF BUSINESS OUT HERE SAYS MR GILMARTIN A DATAPROCESSING CONSULTANT AT FIDELITY JUST YESTERDAY MORNING A QUALITYASSURANCE GUY WHO HAD TO APPROVE MY WORK WAS UNAVAILABLE THEY SAID HE WAS GOING INTO A MEETING BUT I MET HIM OUT HERE HE GOES INSIDE AND FIVE MINUTES LATER IT'S DONE GARY KUIPER A STAFF ATTORNEY WITH A FEDERAL AGENCY IN WASHINGTON LEARNS ABOUT PENDING PROJECTS AND EXCHANGES PROFESSIONAL ADVICE WITH OTHER SMOKERS IN THE 10BY10 SMOKING ROOM ON HIS FLOOR I'LL BE TALKING TO SOMEBODY AND IT TURNS OUT THEY WANT TO HIRE OUTSIDE COUNSEL FOR A MULTIMILLIONDOLLAR PROJECT SAYS THE 41YEAROLD MR KUIPER WHO HAS BEEN A VICEROY MAN FOR 22 YEARS I'LL PUT THEM IN CONTACT WITH WHOMEVER THEY NEED TO TALK TO IT WAS IN HER SMOKING KLATCH THAT MS DOBBS FIRST LEARNED THAT A BRANCH MANAGER OF A BIG TENANT AT PIEDMONT CENTER WAS BEING DEMOTED A COUPLE OF MONTHS BEFORE HE HIMSELF FOUND OUT MESSRS BARRY AND THIBEAULT SAY THEIR GATHERINGS ARE THE BEST SOURCE OF THE LATEST SKINNY ON WHICH DEPARTMENTS ARE BEING TRANSFERRED TO FIDELITY'S DATA OPERATIONS IN DALLAS AND WHO WILL LOSE JOBS AS A RESULT FROM THE BYGONE DAYS OF SMOKY CAFES TO THIS VERY MOMENT SMOKERS AND NONSMOKERS ALIKE HAVE DEBATED JUST WHAT IT IS THAT ATTRACTS PEOPLE TO CIGARETTES AUTHOR TOM ROBBINS ONCE WROTE THAT IT WASN'T THE SMOKE BUT THE FIRE PERHAPS IT IS FELLOWSHIP YOUR BOSS LIGHTS UP A CIGARETTE YOU HAVE A CIGARETTE AND YOU GET TO KNOW EACH OTHER A LITTLE BETTER SAYS MR KUIPER THE ATTORNEY YOU RECOGNIZE EACH OTHER AS MEMBERS OF THE LATEST EMBATTLED MINORITY CLASS 9301110013 930111 CALIFORNIA GOVERNOR UNVEILS BUDGET PLAN THAT TRIMS PROGRAMS SACRAMENTO CALIF GOV PETE WILSON UNVEILED AN AUSTERE 497 BILLION BUDGET PROPOSAL THAT CHOPS HEALTH AND WELFARE PROGRAMS SLASHES CITIES' AND COUNTIES' SHARE OF PROPERTY TAXES AND SEEKS FEDERAL MONEY TO HELP PLUG A YAWNING BUDGET GAP THE PROPOSAL IS THE OPENING GAMBIT IN WHAT IS SHAPING UP AS ANOTHER YEAR OF RITUAL COMBAT BETWEEN THE REPUBLICAN GOVERNOR AND THE DEMOCRATICCONTROLLED STATE LEGISLATURE OVER THE BUDGET THEY STRUGGLED UNSUCCESSFULLY TO ELIMINATE HUGE DEFICITS IN THE PREVIOUS TWO YEARS AND NOW MUST FIND A WAY TO DEAL WITH AN ESTIMATED SHORTAGE OF 6 BILLION TO 10 BILLION INCLUDING BOTH THE CURRENT FISCAL YEAR AND FISCAL 1994 CALIFORNIA WHICH HAS THE WORLD'S EIGHTHLARGEST ECONOMY IS REELING FROM MASSIVE JOB LOSSES PERSISTENT REAL ESTATE WOES AND OTHER PROBLEMS STATE OFFICIALS HAVE PREDICTED THAT THE STATE WILL RUN OUT OF CASH BY SPRING LAST YEAR LEGISLATORS AND THE GOVERNOR BATTLED FOR MONTHS OVER THE BUDGET WITHOUT PERMANENTLY RESOLVING ANYTHING FOR SEVERAL WEEKS THE STATE HAD TO RESORT TO ISSUING IOUS TO STAY IN OPERATION COSTING TAXPAYERS TENS OF MILLIONS OF DOLLARS IN EXTRA INTEREST COSTS A FEDERAL JUDGE LATER RULED THAT ISSUING SUCH IOUS IS ILLEGAL GOV WILSON HAS SAID HE WILL NOT RAISE TAXES TO EASE THE BUDGET CRUNCH INDEED HE PROPOSES TAX BREAKS AND BUSINESS INCENTIVES DESIGNED TO CREATE JOBS AND SPUR THE ECONOMY AND HIS BUDGET PLAN SEEKS 145 BILLION IN FEDERAL MONEY TO HELP DEFRAY THE MUSHROOMING HEALTH WELFARE AND LAWENFORCEMENT COSTS BORNE BY THE STATE AS A RESULT OF LARGE INFLUXES OF IMMIGRANTS IN RECENT YEARS GOV WILSON SAID FEDERAL GOVERNMENT SHOULD HELP SHOULDER SUCH COSTS BECAUSE FEDERAL POLICIES HAVE FUELED THE IMMIGRATION 9301110012 930111 US LAWYER TO STAND TRIAL IN UK FOR ROLE IN GUINNESS PLC BID LONDON REUTER AN AMERICAN LAWYER WHO ADVISED THE CHIEF EXECUTIVE OF DRINKS GIANT GUINNESS PLC DURING ITS TAKEOVER BID FOR SCOTCH WHISKY COMPANY DISTILLERS PLC GOES ON TRIAL TODAY IN THE LATEST CHAPTER OF THE BRITISH SCANDAL THOMAS WARD IS ACCUSED OF THEFT FALSE ACCOUNTING AND DECEPTION RELATING TO THE 415 BILLION TAKEOVER BY GUINNESS IN 1986 THE AMERICAN WHO HAS BEEN WORKING WITH A WASHINGTON LAW FIRM FOR THE PAST FEW YEARS DENIES CHARGES THAT HE STOLE 8 MILLION FROM GUINNESS AND SAYS THIS WAS A SUCCESS FEE THE TRIAL WILL BE THE FOURTH IN THE GUINNESS SERIES BROUGHT BY BRITAIN'S SERIOUS FRAUD OFFICE THE FIRST TRIAL IN 1990 WHICH LASTED 113 DAYS BROUGHT GUILTY VERDICTS AGAINST FORMER GUINNESS CHIEF EXECUTIVE ERNEST SAUNDERS STOCKBROKER ANTHONY PARNES BUSINESSMEN GERALD RONSON AND SIR JACK LYONS MR LYONS A BENEFACTOR OF MANY CHARITIES WAS STRIPPED OF HIS KNIGHTHOOD AND MR RONSON A SELFMADE MILLIONAIRE WHO BUILT UP ONE OF THE BIGGEST PRIVATE EMPIRES IN BRITAIN WAS IMPRISONED THE FRAUD OFFICE ALLEGED THAT ILLEGAL SHARE SUPPORT OF GUINNESS STOCK HELPED IT BEAT A RIVAL BID FROM FOOD GROUP ARGYLL PLC BUT A SECOND TRIAL BEGUN IN 1991 WHICH RAN FOR 72 DAYS COLLAPSED AFTER ONE OF THE DEFENDANTS FINANCIER ROGER SEELIG SHOWED SIGNS OF A BREAKDOWN WHILE CONDUCTING HIS OWN DEFENSE THE SECOND DEFENDANT LORD SPENS WAS ACQUITTED LAST NOVEMBER LORD SPENS HAS STARTED A LAWSUIT AGAINST ROBIN LEIGHPEMBERTON GOVERNOR OF THE BANK OF ENGLAND ALLEGING THE CENTRAL BANK BROUGHT PRESSURE ON HIS EMPLOYER TO FORCE HIM OUT OF HIS JOB A THIRD GUINNESS TRIAL WAS DROPPED AFTER LONG PREPARATION 9301110011 930111 BUSINESS BRIEF PICTURETEL CORP OFFER OF LESS COSTLY SYSTEMS FOR VIDEOCONFERENCE PLANNED PICTURETEL CORP DANVERS MASS PLANS TO UNVEIL TODAY A NEW VIDEOCONFERENCE SYSTEM PRICED AT 18500 SOME 26 LESS THAN ITS PREVIOUS CHEAPEST FULLCOLOR SYSTEM THE MAKER OF VIDEO CONFERENCE SYSTEMS ALSO SAID IT IS CUTTING PRICES ON EXISTING SYSTEMS BY ABOUT 20 ON ITS HIGHEND MODELS THE NEW MODEL 150 WILL REPLACE THE SLOW SELLING BLACKANDWHITE MODEL 20 WHICH HAD A BASE PRICE OF 20000 PICTURETEL SAID THE COMPANY WILL OFFER A LEASING OPTION AT LESS THAN 500 A MONTH THAT'S LESS THAN TWO ROUNDTRIP FLIGHTS TO NEW YORK FROM BOSTON SAID JOAN NEVINS PICTURETEL'S VICE PRESIDENT FINANCE PICTURETEL EXECUTIVES PREDICTED THE NEW MODEL WILL SELL WELL TO EXISTING CUSTOMERS WHO WANT TO ADD REGIONAL OFFICES TO THEIR VIDEOCONFERENCE NETWORKS AND MEDIUMSIZE BUSINESSES THAT HAVE FOUND VIDEOCONFERENCE EQUIPMENT TOO EXPENSIVE IN THE PAST 9301110010 930111 LEISURE & ARTS JAZZ VERY COOL VERY HOT BY JOHN MCDONOUGH IN THE LATE 1940S AMERICAN JAZZ SPAWNED AN AMERICAN LITERATURE VERY MUCH LIKE ITSELF AT THE TIME DISSATISFIED DISAFFECTED AND COOL THUS DID THE BOP GENERATION BEGAT THE BEAT GENERATION THIS NOTION IS DOCUMENTED IN AN UNUSUAL NEW ALBUM THE BEAT GENERATION RHINO/WORD BEAT A THREECD STUDY IN MUTUAL ALIENATION THAT LOOKS AT THE BEBOP/BEAT CONNECTION FROM ALL SIDES INCLUDING THE APPROPRIATIONS OF A PREDATORY POP CULTURE THAT BOTH FEARED AND RIDICULED IT BEFORE FINALLY DIGESTING IT IN THE EARLY '60S THE SCRAPBOOK FORMAT AND QUICK PACE NO PAUSES BETWEEN CUTS ARE RIGHT THE BEAT MOVEMENT WAS BORN DECONSTRUCTED ITS LEGACY WAS NOT A BODY OF IDEAS BUT A CLANDESTINE SENSIBILITY OF BITS AND PIECES THAT MADE THE OUTRAGEOUS A TACTIC OF PROVOCATION AND PROTEST THIS AND THE REACTION TO IT MAKE UP THIS PROFILE OF THE AMERICAN SPIRITUAL LEFT IN ITS FUGITIVE PRIME THE BEATS OR BEATNIKS AS THEY WERE CALLED ONCE SPUTNIK ORBITED AND NIK BECAME AN ALLPURPOSE SUFFIX FOR THE NOUN OF YOUR CHOICE WERE NOT AN EASY LOT TO FIGURE IN THE '50S THEY PROTESTED NO WAR NO INJUSTICE NO SPECIAL EVIL THE BEAT CRITIQUE WAS WIDE FEARLESS AND HOPELESSLY PREMATURE IT TOOK ON THE WHOLE OF THE AMERICAN DREAM AT THE CREST OF ITS FULFILLMENT AND IN ITS ATTACK ON A SPIRITUALLY CORRUPT MATERIALISM IT SAW IN BEBOP EVERYTHING ITS OWN WHITE BOURGEOIS CULTURE LACKED A WORLD OF HAPPY TRUEHEARTED ECSTATIC NEGROES ACCORDING TO JACK KEROUAC WHO CREATED HIMSELF IN THE LITERARY IMAGE OF CHARLIE PARKER'S MUSIC AND BECAME THE COOL GURU OF HIP LIFE AND LITERATURE THE ALBUM GIVES US KEROUAC PARKER AND OTHER BEAT HEROES AND HANGERSON LENNY BRUCE ALLEN GINSBERG WILLIAM BURROUGHS CHET BAKER KEN NORDINE SLIM GALLIARD EVEN EARLY ROD MCKUEN PLUS A FINE BOOK OF NOTES SOME ESSENTIALS HOWEVER ARE INEXPLICABLY OVERLOOKED LAWRENCE FERLINGHETTI MILES DAVIS AND THE BIRTH OF THE COOL RECORDS AND NORMAN MAILER'S THE WHITE NEGRO TO NAME THREE JUST AS THE BEATS APPROPRIATED BEBOP FOR THEIR PURPOSES THE POP MEDIA APPROPRIATED THE BEATS FOR THEIR PURPOSES WE HEAR THE STRAIGHT WORLD TRY GAMELY TO ENTER THE BEAT MIND AND SIFT PRETENSE FROM SUBSTANCE HOWARD K SMITH AND CHARLES KURALT SEEM OPENMINDED AND WILLING TO PLAY ALONG BUT WHEN BEN HECHT INTERVIEWS KEROUAC THE CONTEMPT IS SO MUTUAL NO VENEER OF CIVILITY CONCEALS THE TENSION HECHT IS A SNIT AND ASKS ALL THE WRONG QUESTIONS KEROUAC IS OBLIQUE AND PUTS HIM ON WITH ALL THE WRONG ANSWERS IN A WAY I CAN UNDERSTAND HECHT'S IMPATIENCE INTELLECTUAL TOLERANCE OFTEN PUT THIS PECULIAR COUNTERCULTURE AT THE MERCY OF FAKES WHOSE GASBAG VERSE FOUND AN EASY IF EPHEMERAL CACHET ON THE COFFEEHOUSE CIRCUIT LATER AS VIETNAM REPLACED THE AMERICAN DREAM AS THE OBJECT OF ATTACK AND ROCK REPLACED BEBOP AS THE MARCHING MUSIC THE BEAT GENERATION EVOLVED INTO THE HIPPIE MOVEMENT IN THE END THE BEAT AESTHETIC NEVER SOLVED ITS PROBLEMS OF FORM WHAT BEGAN AS ATTITUDE IMITATING ART WOULD SLOWLY DROP THE MASQUERADE AND BECOME SOMETHING ELSE WHEN YOU WATCH SANDRA BERNHARD OR MADONNA TODAY YOU SEE IN A SENSE THE RESULT ATTITUDE AS ART MAYBE THIS IS WHY THE MUSIC HAS AGED BETTER THAN THE POETRY CONSIDER GERRY MULLIGAN'S CURRENT CD REBIRTH OF THE COOL GRP RECORDS IT RECREATES THE DEFINING EARLY PERFORMANCES OF COOL JAZZ THE DOZEN CHAMBER PASTELS MR MULLIGAN COLLABORATED ON IN 194950 WITH DAVIS LEE KONITZ AND OTHERS COMING AT THE SAME TIME KEROUAC NAMED HIS ERA THE BEAT GENERATION THESE THOUGHTFUL REFINEMENTS OF BOP SEEMED BY SOME COINCIDENCE OF CULTURE THE PERFECT COUNTERPOINT TO THE BEATIFIC SENSIBILITY OF THE EARLY BEAT ZEITGEIST ALTHOUGH THEIR PURPOSE WAS MUSIC NOT ICONOCLASM IMPORTED EUROPEAN HARMONIES NOT ONLY GAVE JAZZ FRESH OPTIONS BUT RESTORED A MISSING EQUILIBRIUM BETWEEN ENSEMBLE AND SOLOIST MULLIGAN'S 1992 VERSIONS DON'T REPLACE THE ORIGINALS BUT THEY EXTEND THEM AND CONFIRM THEIR ACHIEVEMENT OF 40 YEARS AGO IT'S STILL COOL TO BE COOL IT'S STILL COOL TO BE HOT TOO AND THIS MAY HELP EXPLAIN WHY JAZZ SEEMS SUDDENLY BULLISH AGAIN ON THE CLARINET SEVERAL GIFTED VIRTUOSOS NO DOUBT HAVE SOMETHING TO DO WITH ALL THIS KEN PEPLOWSKI'S CONCORD ALBUMS HAVE DONE THEIR SHARE AND ARTIE SHAW HAS WATCHED HIS SUPERB 1954 LAST RECORDINGS SUDDENLY BECOME AMONG THE MOSTTALKEDABOUT RELEASES OF 1992 MUSIC MASTERS THEN THERE IS EDDIE DANIELS HIS RECENT ALBUM BENNY RIDES AGAIN CONTEMPORARY WITH VIBIST GARY BURTON TAKES THE RICH BENNY GOODMANLIONEL HAMPTONCHARLIE CHRISTIAN REPERTOIRE AS ITS POINT OF DEPARTURE AND SHUFFLES IT INTO A WHOLLY CONTEMPORARY BODY OF WORK YET YOU'LL FIND NONE OF THE GREASY FINGERPRINTS OF TRENDINESS SMUDGING ITS LOVELY SURFACES DANIELS'S PHRASING IS GRACEFUL AND UNFORCED BURTON IS AN ELEGANT MASTER OF SWING THOSE WEANED ON THE ORIGINALS WILL BE SURPRISED DELIGHTED AND ENLARGED BY WHAT THEY HEAR THE WORK OF KENNY DAVERN IS SO SINGULAR AMONG WORLDCLASS CLARINETISTS IT'S A SHAME HE HAS BEEN TYPECAST IN THE JAZZ BACKWATER OF TRADITIONALISM DAVERN POURS ALL PASSION INTO HIS SOUND WHICH IS THE HARDEST MOST PENETRATING AND STATELY SINCE SHAW'S ONE NOTE FROM DAVERN MAY DO THE WORK OF 20 FROM ANOTHER HIS MOST EXCITING AND CHARGING WORK IS HEARD ALONGSIDE SOPRANO SAXIST BOB WILBER ON SUMMIT REUNION CHIAROSCURO BUDDY DEFRANCO AND VIBIST TERRY GIBBS HAVE COLLABORATED MANY TIMES BUT NEVER WITH MORE FIREWORKS THAN ON THE CURRENT KINGS OF SWING CONTEMPORARY THE TEXT ONCE AGAIN IS GOODMAN BUT THE LANGUAGE IS A MUSICAL GENERATION REMOVED IN THE QUICK CROWDED INTRICACIES OF BOP SPEED AND VIRTUOSITY SOMETIMES HAVE A WAY OF MAKING MUSICIANS SEEM LIKE ATHLETES DEFRANCO AND GIBBS OF COURSE ARE BOTH SO IS GUITARIST HERB ELLIS WHO IS THE THIRD FRONTLINE PLAYER THAT'S WHY THE MUSIC WHILE OFTEN FAST IS NEVER CRUNCHED OR CONGESTED ELLIS LEARNED TO PLAY FAST THE HARD WAY YOU MAY RECALL WITH THE OSCAR PETERSON TRIO OF THE '50S IN 1990 THE TRIO WITH RAY BROWN ON BASS REUNITED FOR A MONTH IN NEW YORK AND NOW THE THIRD OF THREE PROMISED CDS IS UPON US LAST CALL AT THE BLUE NOTE TELARC I ADMIRE PETERSON FOR THE SAME REASON I ADMIRE BENNY CARTER AND AN OLD KODAK 35 I HAVE THAT USES FLASHBULBS WITHOUT CEREMONY EACH STILL DOES EXACTLY WHAT IT WAS BUILT TO DO AND PRODUCES RESULTS THAT CONFOUND PROGRESS FEW ENOUGH THINGS ARE TRULY GOOD FEWER STILL ARE SO GOOD FOR SO LONG AND THAT'S THE LEAST OF THE REASONS I FIND A LOT TO LIKE HERE MR MCDONOUGH IS A FREELANCE MUSIC WRITER IN CHICAGO 9301110009 930111 TECHNOLOGY BRIEF DELL COMPUTER CORP TEXAS COMPUTER FIRM PLANS DIRECT SALES OF PCS IN JAPAN DELL COMPUTER CORP AUSTIN TEXAS SAID IT PLANS TO SELL LOWPRICED PERSONAL COMPUTERS IN JAPAN DIRECTLY TO CONSUMERS THIS APPARENTLY WOULD BE THE FIRST MAJOR USE OF MAIL ORDER IN THE JAPANESE PC MARKET BY CHOOSING TO SELL THROUGH MAIL ORDER DELL THE FIFTHLARGEST PC MAKER IN THE WORLD PLANS TO LARGELY BYPASS THE BYZANTINE SYSTEM OF MIDDLEMEN THAT PRESENTS SUCH A FORMIDABLE BARRIER TO ENTERING THE JAPANESE MARKET IN THE US DELL SELLS PCS MAINLY TO INDIVIDUAL CONSUMERS THROUGH MAIL ORDER A DELL SPOKESWOMAN SAID THE COMPANY'S JAPANESE SALES EFFORT WOULD BE PRETTY MUCH MODELED ON DELL'S US OPERATIONS DELL REPRESENTATIVES IN TOKYO AND DALLAS HAD NO COMMENT ON JAPANESE PRESS REPORTS THAT THE COMPANY WILL UNDERCUT COMPAQ COMPUTER CORP'S PRICES IN JAPAN BY MORE THAN 20 9301110008 930111 BUSINESS BRIEF GEORGIAPACIFIC CORP CHARGE OF 55 MILLION SET TO BE TAKEN FOR '92 EARNINGS GEORGIAPACIFIC CORP SAID IT WILL TAKE A ONETIME AFTERTAX CHARGE TO 1992 EARNINGS OF 55 MILLION OR 64 CENTS A SHARE FOR AN ACCOUNTING CHANGE IN 1991 THE FORESTPRODUCT CONCERN HAD A LOSS INCLUDING ONETIME ITEMS OF 142 MILLION OR 165 A SHARE ON REVENUE OF 1152 BILLION IN ADDITION TO THE ACCOUNTING CHANGE FOR DEFERRED TAXES GEORGIAPACIFIC SAID PRETAX EARNINGS FOR 1992 WILL INCLUDE A CHARGE FOR DEPRECIATION AND DEPLETION OF 69 MILLION THE COMPANY EXPECTS THAT FIGURE TO BE OFFSET BY A REDUCTION IN INCOMETAX EXPENSE OF ROUGHLY THE SAME AMOUNT GEORGIAPACIFIC SAID IT EXPECTS A SIMILAR EFFECT IN SUBSEQUENT YEARS OPERATIONS FOR THE FIRST THREE QUARTERS OF 1992 WILL BE RESTATED TO REFLECT THE CHANGE IN ACCOUNTING CASH FLOW IN 1992 AND SUBSEQUENT YEARS WON'T BE AFFECTED ACCORDING TO THE COMPANY GEORGIAPACIFIC SAID IT ADOPTED ANOTHER MANDATED ACCOUNTING CHANGE RELATED TO POSTRETIREMENT BENEFITS IN 1991 9301110007 930111 FORD'S TAURUS NO 1 THAT'S BULL SAYS CAR MAKER WITH COZY NICHE BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT ALL THE FUSS ABOUT WHETHER THE BESTSELLING CAR IN THE US IS A FORD TAURUS OR A HONDA ACCORD HAS CREATED SOME SORE LOSERS NOT HONDA MOTOR CO AFTER COMING IN NO 2 IN A FOREIGN MARKET WITH A NAMEPLATE THAT WAS FIRST INTRODUCED 17 YEARS AGO AND ONLY GRADUALLY UPDATED SINCE HONDA KNOWS BETTER THAN TO WHINE ABOUT IT BUT CHRYSLER CORP GRUMBLES THAT IT SOLD 462070 MINIVANS BEATING FORD MOTOR CO'S 409751 TAURUSES GENERAL MOTORS CORP SAYS IT SOLD 431543 PICKUPS ALSO OUTSELLING THE TAURUS FORD COUNTERS THAT ITS PICKUP OUTSOLD GM'S GM SAYS FORD MIXES BIGGER TRUCKS INTO ITS PICKUP COUNT WITH ALL THIS BICKERING THE BIG THREE SOUND LIKE BOYS ARGUING ABOUT WHO WON THE FISTFIGHT SO IT SHOULD BE NO SURPRISE THAT THE LOUDEST CRIES ARE COMING FROM A LITTLE GUY IN THE CORNER OF THE PLAYGROUND WHO HAS BEEN LEFT OUT OF THE FUN TO WIT THE APPROPRIATELY NAMED LITTLE TIKES CO THIS HUDSON OHIO TOY MANUFACTURER SOLD MORE THAN 600000 COZY COUPES LAST YEAR HANDILY BEATING THE ACCORD AND THE TAURUS AND ALLBUT CORNERING THE TWOTOSIXYEAROLD MARKET SO WHY HASN'T LITTLE TIKES A DIVISION OF RUBBERMAID INC RECEIVED THE CREDIT IT DESERVES WE THINK THE MEDIA ARE BIASED SAYS KEVIN G CURRAN A LITTLE TIKES VICE PRESIDENT BIASED AGAINST THE KIDS OF AMERICA AND KIDPOWERED CARS SAYS MR CURRAN THE FLOORLESS COZY COUPE'S DESIGNERS SAY THE SITIN FEATURE IS KEY TO THE CAR'S SUCCESS IT HAS A ROUNDED ROOF AND A DOOR THAT OPENS AND CLOSES ALLOWING CHILDREN TO ENTER AND FEEL WELL COZY IT ALSO HAS A PRODUCTION RUN THAT WOULD MAKE MOST AUTO MAKERS DROOL IT'S BEING BUILT AT SEVEN NORTH AMERICAN PLANTS RUNNING THREE SHIFTS A DAY SIX DAYS A WEEK OF COURSE MATTEL INC HAS A DIFFERENT PERSPECTIVE IT SOLD ONE MILLION FERRARI HOT WHEELS MODELS LAST YEAR BUT THE FERRARI IS NOT A SITIN VEHICLE SNIFFS MR CURRAN LITTLE TIKES' STRONG SALES CONTINUE EVEN THOUGH IT HASN'T MUCH CHANGED ITS 50 REDANDYELLOW CAR SINCE IT WAS INTRODUCED 12 YEARS AGO THIS YEAR THOUGH THE COMPANY JOINED THE INDUSTRY RUSH TO BUILD A MINIVAN ROSS H ROBERTS WHO HEADS FORD'S FLAGSHIP MARKETING DIVISION HAS VOWED TO FIGHT BACK AGAINST THE COZY COUPE WE'LL HAVE TO GIVE THOSE KIDS A GOOD TRADEIN ON A TAURUS HE SAYS BUT ONLY IF THEY HAVE A DRIVER'S LICENSE 9301110006 930111 GM SEES SIGNS OF IMPROVEMENT AS BOARD MEETS TO REVIEW FINANCIAL MANAGEMENT BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP EXECUTIVES BELIEVE THE COMPANY'S FINANCIAL BLEEDING HAS SLOWED SIGNIFICANTLY IN RECENT WEEKS AND THAT THE PERFORMANCE OF THE COMPANY'S DOMESTIC AUTO OPERATIONS IS IMPROVING FASTER THAN EXPECTED AMID THIS ENCOURAGING DEVELOPMENT GM'S BOARD WILL MEET TODAY IN DETROIT TO GET THE RESULTS OF A TOUGH REVIEW OF THE NO 1 AUTO MAKER'S FINANCIAL MANAGEMENT ALREADY IN RESPONSE TO THE BOARD'S CONCERN THE COMPANY IS TIGHTENING ITS FINANCIAL PRACTICES IN SUCH KEY AREAS AS PENSION ACCOUNTING OUTSIDE DIRECTORS ORDERED THE REVIEW OF GM'S FINANCIAL MANAGEMENT IN THE FALL AMID CONCERNS THAT THE COMPANY WAS CAREENING TOWARD A LIQUIDITY CRISIS BOARD MEMBERS WORRIED THAT GM'S DETERIORATING CREDIT RATINGS WOULD CUT OFF ACCESS TO CAPITAL NEEDED TO REPLACE MATURING DEBTS AT GENERAL MOTORS ACCEPTANCE CORP THEIR CONCERNS WERE HEIGHTENED IN OCTOBER AS MOODY'S INVESTORS SERVICE INC WITHDREW ITS TOPTIER RATING FOR GMAC COMMERCIAL PAPER AND STANDARD & POOR'S CORP PUT GM'S DEBT RATINGS UNDER REVIEW WITH CASH FLOWING OUT OF GM'S COFFERS AT THE RATE OF 89 MILLION A DAY IN THE FALL SOME GM DIRECTORS OPENLY DISCUSSED THE POSSIBILITY THAT THE WORLD'S LARGEST AUTO MAKER COULD BE DRIVEN INTO A CHAPTER 11 BANKRUPTCYLAW FILING THAT OPTION WAS QUICKLY DISMISSED ACCORDING TO GM SOURCES GM PRESIDENT JOHN F SMITH JR IN HIS FIRST PRESS CONFERENCE IN NOVEMBER AFTER TAKING THE HELM OF THE COMPANY CALLED THE BANKRUPTCY TALK RIDICULOUS THE POTENTIAL CRISIS WAS AVERTED AS GMAC BEGAN AN AGGRESSIVE EFFORT TO RAISE CASH AND CUT SHORTTERM DEBT AND MR SMITH CLAMPED DOWN ON GM'S SPENDING BUT CONCERN AMONG SOME OUTSIDE DIRECTORS THAT GM'S MANAGEMENT DIDN'T ACT AGGRESSIVELY ENOUGH TO DEAL WITH THE POTENTIAL CRISIS PLAYED A ROLE IN THE OUSTER OF FORMER GM CHAIRMAN ROBERT C STEMPEL AS CHIEF EXECUTIVE OFFICER MR STEMPEL RESIGNED IN LATE OCTOBER AFTER IT BECAME CLEAR HE HAD LOST THE BOARD'S SUPPORT AROUND THE SAME TIME THE BOARD INITIATED THE FINANCIAL REVIEW WHICH HAS INVOLVED GM'S FINANCE STAFF AND JP MORGAN & CO THE BANK HEADED BY GM BOARD MEMBER DENNIS WEATHERSTONE ACCORDING TO GM SOURCES THE REVIEW IS AIMED AT IMPROVING GM'S CASH MANAGEMENT AND DETERMINING WHETHER THE COMPANY'S ACCOUNTING PRACTICES ARE RIGOROUS ENOUGH AT THE END OF THE THIRD QUARTER GM HAD 522 BILLION OF CASH AND SECURITIES IN ITS AUTOMOTIVE OPERATIONS WHILE THAT'S A CONSIDERABLE SUM IT'S UNDERSTOOD THAT THE COMPANY REGARDS 3 BILLION AS THE MINIMUM CUSHION FOR AN OPERATION OF ITS SIZE SO FAR THE BOARD'S FINANCIAL SCRUTINY APPEARS TO BE HAVING RESULTS GM'S GROUP VICE PRESIDENT FOR FINANCE LEON KRAIN TOLD ANALYSTS IN A MEETING THURSDAY THAT GM WILL BE MORE CONSERVATIVE IN ITS ACCOUNTING PRACTICES IN PARTICULAR WHEN IT COMES TO SETTING THE ASSUMPTIONS THAT GOVERN PENSION CONTRIBUTIONS GM'S PENSION TRUSTS ARE ESTIMATED TO BE ABOUT 11 BILLION UNDERFUNDED IN PART BECAUSE OF LIBERAL ASSUMPTIONS ADOPTED IN 1990 THAT HAD THE EFFECT OF BOOSTING NET INCOME AND DECREASING PENSION CONTRIBUTIONS GM HAD ASSUMED FOR EXAMPLE THAT RETIREES WOULD DIE AN AVERAGE TWO YEARS EARLIER THAN IN THE PAST AND THUS WOULD REQUIRE FEWER PENSION PAYMENTS BUT LATE LAST YEAR GM SAID IT WOULD TAKE A CHARGE AGAINST EARNINGS OF BETWEEN 11 BILLION AND 19 BILLION TO TIGHTEN ITS PENSION ACCOUNTING NOW GM'S DIRECTORS MAY FACE SOME TOUGH DECISIONS IN CONNECTION WITH THE FINANCIAL REVIEW AMONG THEM IS HOW AND WHEN TO TAKE A HUGE NONCASH CHARGE TO RECOGNIZE THE COMPANY'S LIABILITY FOR FUTURE RETIREE MEDICAL BENEFITS GM HAS SAID COMPLYING WITH THE SOCALLED FASB 106 ACCOUNTING STANDARD COULD REDUCE SHAREHOLDER EQUITY BY 16 BILLION TO 24 BILLION GM EXECUTIVES INCLUDING G RICHARD WAGONER CHIEF FINANCIAL OFFICER OFFERED FEW SPECIFICS ABOUT GM'S FINANCES AT THE ANALYSTS MEETING THEY DID HOWEVER SAY THEY'RE CONFIDENT GM CAN MAKE GOOD ON MR SMITH'S PROMISE TO HAVE NORTH AMERICAN OPERATIONS BREAK EVEN BEFORE INTEREST AND TAXES ACCOMPLISHING THAT SHOULD PUT GM IN THE BLACK FOR THE YEAR IF THE COMPANY'S EUROPEAN OPERATIONS REMAIN STRONG IF MR WAGONER SAYS WE'RE ON TARGET WE'RE ON TARGET MR SMITH SAID FRIDAY MR WAGONER HAS BEEN GM'S TOP FINANCE OFFICER SINCE ONLY NOV 2 WHEN HE WAS NAMED TO THE POST AS PART OF THE BOARD'S MANAGEMENT SHAKEUP BEFORE THAT HE RAN GM'S BRAZILIAN OPERATIONS IN HIS COMMENTS TO ANALYSTS MR WAGONER HIGHLIGHTED THE PROFITABILITY OF GM'S LATIN AMERICAN OPERATIONS BUT OTHERWISE WAS RESTRAINED SAID WERTHEIM SCHRODER ANALYST JOHN CASESA BUT OTHER GM EXECUTIVES SAID LAST WEEK THE COMPANY'S OUTLOOK HAS IMPROVED MARKEDLY IN RECENT WEEKS AS COSTCUTTING HAS TAKEN HOLD GM EXECUTIVES ALSO SOUGHT TO ALLAY CONCERNS AMONG ANALYSTS ABOUT THE COMPANY'S MARKETSHARE DECLINE IN 1992 ARGUING THAT GM'S SHARE LOSSES REFLECT A STRATEGIC DECISION TO FORGO UNPROFITABLE SALES TO RENTAL CAR FLEETS ANALYSTS HAD MIXED REVIEWS OF THE MEETING MR CASESA SAID HE LEFT DISAPPOINTED BY THE LACK OF SPECIFIC INFORMATION AND WAS CONCERNED THAT GM COULD LOSE MORE MARKET SHARE IN THE NEXT TWO YEARS AS IT SCRAMBLES TO BRING OUT REPLACEMENTS FOR DATED MIDSIZE AND COMPACT MODELS BUT PAINEWEBBER ANALYST STEPHEN GIRSKY SAID HE WAS ENCOURAGED EVERYTHING WAS SOFT BUT THERE'S A PULSE IN THIS COMPANY HE SAID MR GIRSKY EXPECTS GM TO EARN ABOUT 24 BILLION OR 245 A SHARE THIS YEAR AFTER LOSING ABOUT 1 BILLION FOR 1992 ITS THIRD STRAIGHT YEAR OF RED INK SEPARATELY A GM SPOKESMAN SAID LAST WEEK THE PROPOSED SALE OF THE ALLISON TRANSMISSION UNIT TO A GERMAN MANUFACTURER STILL HASN'T WON US GOVERNMENT APPROVAL AND WON'T BE BOOKED IN 1992 GM HAD SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT EXPECTED A 225 MILLION GAIN FROM THE ALLISON SALE AND THE SALE OF ITS STAKE IN KOREA'S DAEWOO MOTOR CO 9301110005 930111 CLARIFICATION THURSDAY'S GARDENING COLUMN ON THE L&A PAGE CONTAINED INCOMPLETE PUBLISHING INFORMATION ON WHO DOES YOUR GARDEN GROW ITS US DISTRIBUTOR IS CAPABILITY'S BOOKS 2379 HIGHWAY 46 DEER PARK WIS 54007 ALSO THE AUTHOR ALEX PANKHURST SHOULD HAVE BEEN REFERRED TO AS MS PANKHURST ON SECOND MENTION 9301110004 930111 BUSINESS BRIEF MATSUSHITA ELECTRIC INDUSTRIAL CO ELECTRONICS UNIT PROPOSES JOINT CHIP VENTURE IN CHINA MATSUSHITA ELECTRONICS CORP OR MEC A SUBSIDIARY OF MATSUSHITA ELECTRIC INDUSTRIAL CO IS PLANNING TO SET UP A JOINT VENTURE IN CHINA THIS YEAR TO MAKE SEMICONDUCTORS AN MEI SPOKESWOMAN SAID MEC PLANS TO BEGIN PRODUCTION OF SEMICONDUCTORS DESIGNED FOR VIDEOTAPE RECORDERS AND OTHER PRODUCTS IN CHINA IN 1994 THE SPOKESWOMAN SAID DECISIONS REMAIN TO BE MADE ON WHICH LOCAL PARTNER MEC WILL TEAM UP WITH AND HOW MANY CHIPS THE VENTURE WILL AIM TO PRODUCE MEC CURRENTLY SHIPS HALFFINISHED INTEGRATED CIRCUIT PARTS TO CHINA FOR ASSEMBLY BUT IN THE FUTURE THE JAPANESE COMPANY WILL AIM TO DO INTEGRATED PRODUCTION LOCALLY 9301110003 930111 WHO'S NEWS E&B MARINE INC E&B MARINE INC EDISON NJ STEPHEN W SCHLUMPF 41 YEARS OLD WAS NAMED VICE PRESIDENT OF CIRCULATION AT THIS DIRECTMAIL MERCHANDISER AND SPECIALTY RETAILER OF MARINE SUPPLIES AND ACCESSORIES MR SCHLUMPF WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT OF MARKETING AT MONTGOMERY WARD DIRECT A SPECIALTY CATALOG JOINT VENTURE OF FINGERHUT CORP AND MONTGOMERY WARD & CO 9301110002 930111 LEHMAN'S GRIFF LEAVES POST IN BOND DISPUTE BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN GRIFF WHO LED A HIGHPROFILE DRIVE BY LEHMAN BROTHERS INC TO BOOST ITS MARKET SHARE IN THE BOND BUSINESS QUIT HIS JOB AFTER THE SECURITIES FIRM MOVED TO DILUTE HIS AUTHORITY AND HE IS EXPECTED TO LEAVE THE FIRM PEOPLE FAMILIAR WITH THE FIRM SAID AS LEHMAN'S HEAD OF DOMESTIC DEBT SYNDICATE MR GRIFF HAD ROILED THE BOND MARKET AS THE BIG INVESTMENT BANK BID AGGRESSIVELY FOR NEW BONDS ISSUED BY CORPORATIONS AND GOVERNMENT AGENCIES SOMETIMES AT ABOVEMARKET PRICES THAT APPARENTLY STUCK LEHMAN WITH BIG INVENTORIES OF UNSOLD BONDS MOST RECENTLY ON DEC 15 LEHMAN WON THE BIDDING FOR 1 BILLION IN 30YEAR BONDS ISSUED BY THE TENNESSEE VALLEY AUTHORITY AT A PRICE THAT SOME BIG INSTITUTIONAL BOND BUYERS PUBLICLY SAID WAS TOO HIGH MR GRIFF SAID AT THE TIME THAT LESS THAN HALF OF THE ISSUE HAD BEEN SOLD BUT THAT LEHMAN EXPECTED TO MAKE MONEY ON THE REMAINING BONDS BY THE END OF JANUARY INSTEAD THE PRICE OF THE TVA ISSUE HAS DECLINED OVER A THREEWEEK PERIOD THAT HAS LEFT THE PRICE OF 30YEAR TREASURY BONDS ESSENTIALLY UNCHANGED MR GRIFF DIDN'T RESPOND TO A MESSAGE LEFT AT HIS OFFICE FRIDAY MR GRIFF JOINED LEHMAN IN 1989 AND BECAME HEAD OF DEBT SYNDICATE IN 1991 IN THAT PERIOD LEHMAN'S VOLUME OF CORPORATE AND AGENCY DEBT UNDERWRITINGS SKYROCKETED TO 429 BILLION IN 1992 FROM ONLY 68 BILLION IN 1990 ACCORDING TO SECURITIES DATA CO THE INCREASE WAS ENOUGH TO VAULT LEHMAN TO THIRD PLACE FROM SIXTH AMONG WALL STREET FIRMS IN UNDERWRITING CORPORATE AND AGENCY DEBT THIS WAS AT A TIME OF RECORD NEWISSUE VOLUME AS CORPORATIONS RUSHED TO REFINANCE THEIR OUTSTANDING HIGHERINTEREST DEBT HOWEVER ONE SIGN THAT LEHMAN WAS GAINING ITS MARKET SHARE WITH A STRATEGY OF BIDDING AGGRESSIVELY FOR NEW BOND OFFERINGS WAS THAT IT RANKED ONLY FIFTH IN THE LEVEL OF FEES ON ITS DEALS AT 1878 MILLION IN 1992 SUCH FEES CALCULATED AS THE DIFFERENCE IN THE PRICE PAID TO THE ISSUER AND THE PRICE AT WHICH THE BONDS ARE REOFFERED TO INVESTORS ARE SUPPOSED TO COMPENSATE THE UNDERWRITERS FOR THE RISK IN HOLDING THE BONDS TEMPORARILY MR GRIFF FORMERLY HEAD OF DEBT SYNDICATE AT MERRILL LYNCH & CO RESIGNED FROM HIS BOND SYNDICATE JOB FRIDAY LEHMAN SAID ALTHOUGH HE REMAINS A MANAGING DIRECTOR AT LEHMAN HE IS EXPECTED TO LEAVE PEOPLE FAMILIAR WITH THE FIRM SAID A LEHMAN SPOKESMAN SAID THE FIRM'S STRATEGY HAS BEEN AND REMAINS TO INCREASE ITS BOND UNDERWRITING VOLUME THE SPOKESMAN ADDED OUR TVA BID WAS A CONSENSUS DECISION MADE WITH THE FULL PARTICIPATION OF SENIOR MANAGEMENT HOWEVER SECURITIES EXECUTIVES SAID MR GRIFF CLASHED WITH HIS SUPERIORS LED BY JOSEPH GREGORY LEHMAN'S HEAD OF TAXABLE FIXEDINCOME OVER MATTERS OF STYLE APPROACH AND PERSONALITY LEHMAN OFFICIALS THESE EXECUTIVES SAID WANTED MR GRIFF TO DELEGATE MORE AND TO ACCEPT MORE INPUT ON SUCH DECISIONS AS PRICING BIDS FOR NEW BOND ISSUES MR GRIFF IS BEING SUCCEEDED BY A TRADER BRENTON ANDERSON FORMERLY HEAD OF MORTGAGE SECURITIES TRADING RIVAL SECURITIES TRADERS SAID MR GRIFF HAD BUILT UP A BIG INVENTORY OF UNSOLD BONDS TOTALING SEVERAL BILLION DOLLARS ALTHOUGH THE POSITION WAS SAID TO HAVE BEEN HEDGED AGAINST A GENERAL DECLINE IN BOND PRICES THE COSTS OF SUCH HEDGES WOULD HAVE EATEN INTO THE PROFIT OF THE BUSINESS THE LEHMAN SPOKESMAN DECLINED TO COMMENT ON THE SIZE OF THE INVENTORY THE TIMING OF MR GRIFF'S RESIGNATION ON A DAY FOLLOWING A BIG PLUNGE IN BOND PRICES THURSDAY CONTRIBUTED TO RUMORS THAT LEHMAN WAS CONCERNED ABOUT THE MARKET VALUE OF ITS BOND PORTFOLIO LEHMAN'S DECISION TO TRIM MR GRIFF'S SAILS COMES AT A TIME WHEN SOME OF THE FIRM'S SENIOR MANAGERS ARE HOPING TO PERSUADE LEHMAN'S PARENT AMERICAN EXPRESS CO TO SELL A BIG STAKE IN ITS BROKERAGE AND INVESTMENT BANKING OPERATIONS SHEARSON LEHMAN BROTHERS INC IN A PUBLIC OFFERING LEHMAN MAY WANT TO CURB THE BOND DESK'S RISKTAKING TO AVOID HARMING THE CHANCES FOR SUCH A SALE THE PRICE ACTION OF THE TVA BONDS INDICATES THAT BOTH LEHMAN AND ITS CUSTOMERS HAVE ABSORBED LOSSES LEHMAN BOUGHT THE BONDS FROM TVA AT A PRICE OF 97619 A YIELD OF 796 AND REOFFERED THEM TO CUSTOMERS AT 98172 A YIELD OF 791 LEHMAN BID FOR THE BONDS JUST BEFORE THE HOLIDAYS AT A TIME OF SLACK MARKET DEMAND BY THE END OF LAST WEEK THE BID PRICE HAD DECLINED TO 97438 THOSE PRICES INDICATE THAT LEHMAN'S CUSTOMERS WHO BOUGHT AT THE INITIAL OFFERING PRICE ARE SITTING WITH INDICATED LOSSES OF 075 OF THEIR INVESTMENT LEHMAN OFFERED THE TVA ISSUE AT A SPREAD OF ONLY 045 PERCENTAGE POINT ABOVE THE YIELD ON 30YEAR TREASURY BONDS A SPREAD DESCRIBED AS RIDICULOUSLY TIGHT BY ALEX POWERS VICE PRESIDENT OF CORPORATE AND US GOVERNMENT INVESTMENTS AT THE PRIVATE BANKING UNIT OF CHASE MANHATTAN BANK THAT SPREAD HAS NARROWED FROM 115 PERCENTAGE POINTS IN 1990 TRADERS SAY PARTLY BECAUSE OF AGGRESSIVE BIDS FROM DEALERS LED BY LEHMAN LEHMAN AND A FEW OTHER BOND UNDERWRITERS ALSO WERE STUCK HOLDING AN ESTIMATED 15 BILLION IN UNSOLD BONDS IN EARLY JULY WHEN ISSUERS FLOODED THE MARKET TO TAKE ADVANTAGE OF LOWER RATES IN ANOTHER EXAMPLE OF AGGRESSIVE PRICING THEN LEHMAN OFFERED 300 MILLION OF REPUBLIC OF IRELAND BONDS IN THE CORPORATE MARKET AT AN INTEREST RATE 013 PERCENTAGE POINT LESS THAN THE YIELD ON ALREADY OUTSTANDING IRISH NOTES WITH COMPARABLE MATURITIES ALTHOUGH LEHMAN HAS MOVED UP IN THE BOND RANKINGS PASSING MORGAN STANLEY & CO SALOMON BROTHERS INC AND FIRST BOSTON CORP THE FIRM REMAINED WELL BEHIND THE TWO LEADERS MERRILL LYNCH & CO AND GOLDMAN SACHS & CO IN 1992 CONSTANCE MITCHELL AND THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9301110001 930111 TOYOTA RESTRUCTURES ITS US SALES ARM NAMES NEW OFFICIALS TOKYO TOYOTA MOTOR CORP PLANS A MAJOR RESTRUCTURING AND EXPANSION OF ITS US SALES OPERATIONS AND YESTERDAY ANNOUNCED SEVERAL SENIOR EXECUTIVE CHANGES TO BEGIN THE PROCESS IN COMING WEEKS TOYOTA'S US SALES ARM TOYOTA MOTOR SALES USA INC IS EXPECTED TO FORM SOME NEW SUBSIDIARIES TO MANAGE ITS GROWING OPERATIONS THE SALES ARM WHICH HAS REVENUE OF 184 BILLION EXPECTS TO ADD SOME 3000 PEOPLE OVER THE NEXT TWO YEARS TO ITS CURRENT PAYROLL OF 16000 EMPLOYEES A COMPANY SPOKESMAN SAID TOYOTA'S MOVES COME AT A TIME WHEN THE NO 1 JAPANESE AUTO MAKER IS UNDER FIRE FROM DETROIT FOR CONTRIBUTING TO THE EROSION OF AMERICAN JOBS AT DETROIT'S BIG THREE AUTO MAKERS WE'RE EDGING TOWARD BECOMING A MORE AMERICAN ORGANIZATION THE SPOKESMAN SAID YESTERDAY TOYOTA MOTOR SALES USA ANNOUNCED THAT J DAVIS ILLINGWORTH 47 YEARS OLD WILL BECOME GROUP VICE PRESIDENT OF THE TOYOTA DIVISION AS PART OF A RESHUFFLING OF TOP MANAGEMENT UNDER EXECUTIVE VICE PRESIDENT YALE GIESZL TAKING MR ILLINGWORTH'S OLD JOB AS HEAD OF THE LEXUS LUXURY CAR DIVISION WILL BE GEORGE BORST 41 FORMER VICE PRESIDENT OF STRATEGIC AND PRODUCT PLANNING AL WAGNER 62 FORMER GROUP VICE PRESIDENT OF THE TOYOTA DIVISION WILL TAKE A NEW POSITION AS GROUP VICE PRESIDENT OF DEALER RELATIONS FOR THE TOYOTA AND LEXUS LUXURY CAR DIVISIONS TOYOTA HAS 1350 US DEALERS PROMOTED TO GROUP VICE PRESIDENT FROM VICE PRESIDENT ARE RICHARD GALLIO HEAD OF PARTS AND SERVICE OPERATIONS AND JIM OLSON HEAD OF EXTERNAL AFFAIRS ALL THE CHANGES ARE EFFECTIVE JAN 16 MR GIESZL IN A STATEMENT SAID MORE CHANGES WILL BE ANNOUNCED SOON 9301080190 930108 WESSANEN ESTIMATES 1992 PROFIT GREW 12 FROM A YEAR EARLIER SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM DUTCH FOODS GROUP WESSANEN NV SAID PROFIT FROM NORMAL OPERATIONS ROSE AROUND 12 FOR 1992 FROM A YEAR EARLIER WESSANEN DIDN'T GIVE AN ESTIMATE FOR FULLYEAR EARNINGS BUT ITS 1991 PROFIT WAS AROUND 1099 MILLION GUILDERS 602 MILLION FAVORABLE RESULTS WERE REPORTED BY EUROPEAN AND US DIVISIONS WESSANEN NOTED THE ANNOUNCEMENT IS IN LINE WITH EARLIER COMPANY FORECASTS THAT 1992 EARNINGS WOULD SURPASS THE PREVIOUS YEAR'S ALSO THE COMPANY CHANGED ACCOUNTING PRACTICES IN 1991 CAUSING AN UPWARD ADJUSTMENT IN ITS PERSHARE EARNINGS FIGURE TO 647 GUILDERS FROM AN EARLIER REPORTED 621 GUILDERS FOR 1991 THE SALE OF THE COMPANY'S MENEBA GRAINPRODUCING DIVISION RESULTED IN AN EXTRAORDINARY GAIN OF AROUND 45 MILLION GUILDERS AFTER TAX THE COMPANY SAID THE SPOKESMAN DECLINED TO PREDICT PROFIT DEVELOPMENTS FOR THE FIRST QUARTER OF 1993 THOUGH FURTHER GAINS ARE EXPECTED FOR 1993 THE COMPANY SAID BARRING UNFORESEEN CIRCUMSTANCES WESSANEN IS ONE OF SEVERAL DUTCH COMPANIES INCLUDING FINANCIAL COMPANIES AND OTHER FOOD PRODUCERS AND DISTRIBUTORS REGARDED BY INVESTORS AND ANALYSTS ALIKE AS DEFENSIVE BECAUSE OF STRONG EARNINGS DURING THE PROLONGED ECONOMIC DOWNTURN IN 1992 IN THE FIRST HALF OF 1992 WESSANEN POSTED A 13 INCREASE IN PROFIT TO 574 MILLION GUILDERS ON A 53 INCREASE IN SALES TO TWO BILLION GUILDERS 9301080189 930108 LLOYD'S SETS UP INTERNAL BOARD TO COUNTER SLUMP BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON IS SETTING UP AN INTERNAL REGULATORY BOARD AS PART OF A WAVE OF CHANGES IN THE 305YEAROLD INSURANCE MARKET DESIGNED TO COUNTER A DEVASTATING SLUMP IN ITS MEMBERSHIP LLOYD'S CHAIRMAN DAVID ROWLAND SAID THE 16MEMBER REGULATORY BOARD WHICH WILL OPERATE INDEPENDENTLY FROM A RECENTLY CONSTITUTED MARKET BOARD IS INTENDED TO UNDERPIN TRADING CONFIDENCE IN THE MARKET'S STRUCTURES ITS MEMBERS WILL BE A MIX OF LLOYD'S PROFESSIONALS AND OUTSIDE INVESTORS AND BUSINESS LEADERS THE NEW BODY IS PART OF A SERIES OF CHANGES RECOMMENDED LAST YEAR THE FUNDAMENTAL CHANGES ARE WIDELY PERCEIVED AS ESSENTIAL TO HELP LLOYD'S OUT OF A CRISIS CAUSED BY HEAVY LOSSES IN 1988 AND 1989 THE TWO MOST RECENT ACCOUNTING YEARS TO HAVE BEEN CLOSED LLOYD'S MEMBERS HAD AGGREGATE LOSSES OF MORE THAN 25 BILLION 385 BILLION OR AN AVERAGE OF AROUND 80000 A MEMBER FROM A PEAK OF 32433 IN 1988 MARKET MEMBERSHIP PLUNGED TO 22332 LAST YEAR AND AROUND 20000 THIS YEAR A CORRESPONDING DECLINE IN THE MARKET'S CAPACITY TO TAKE ON NEW BUSINESS HAS AROUSED FEARS THAT LLOYD'S COULD DWINDLE TO INSIGNIFICANCE ON THE WORLD INSURANCE MARKET ROBBING BRITAIN OF ONE OF ITS MOST PRESTIGIOUS FINANCIAL INSTITUTIONS FROM 102 BILLION IN 1992 LLOYD'S OFFICIALS SAID THE MARKET'S GROSS PREMIUM CAPACITY OR THE MAXIMUM AMOUNT OF PREMIUMS THAT UNDERWRITERS CAN ACCEPT FOR INSURANCE BUSINESS UNDERWRITTEN BASED ON MEMBERS' COMMITMENTS TO THE MARKET IS ESTIMATED TO HAVE FALLEN TO BETWEEN 85 BILLION AND 9 BILLION IN 1993 THOUGH LLOYD'S UNDERWRITERS SAY TRADING CONDITIONS HAVE IMPROVED IN RECENT MONTHS AS A RESULT OF HIGHER PREMIUMS AND TIGHTER POLICY CONDITIONS HEAVY LOSSES STILL TO BE DECLARED FOR 1990 AND THE PROSPECT OF LACKLUSTER RESULTS FOR 1991 ARE LIKELY TO LEAD TO A FURTHER EXODUS OF PARTICIPANTS FROM THE MARKET THIS YEAR AND NEXT EARNINGS FOR 1992 WILL BE HIT BY CLAIMS ARISING FROM HURRICANE ANDREW MEANWHILE 1993 HAS GOTTEN OFF TO A BAD START WITH THE OILTANKER WRECK THIS WEEK OFF THE SHETLAND ISLANDS FOR WHICH LLOYD'S EXPECTS CLAIMS OF AROUND 38 MILLION LLOYD'S MEMBERS KNOWN AS NAMES UNDERWRITE RISK IN RETURN FOR PREMIUM AND INVESTMENT INCOME AND PROFIT IN GOOD YEARS BUT IF RETURNS DECLINE MEMBERS FACE PERSONAL LIABILITY TO PAY LOSSES TO QUALIFY AS A NAME AN INDIVIDUAL HAS TO DEMONSTRATE LIQUID ASSETS OF AT LEAST 250000 ACCORDING TO LLOYD'S OFFICIALS AROUND 2000 MEMBERS QUIT IN 1992 WHILE SOME 250 MEMBERS DIED DURING THE YEAR ONLY 75 NEW MEMBERS JOINED THE MARKET COMPARED WITH 105 NEW MEMBERS IN 1992 IN ADDITION TO COSTCUTTING AND STREAMLINING EFFORTS LLOYD'S HAS EVEN INVITED INSURANCE COMPANIES TO LOCATE REPRESENTATIVES ON ITS TRADING FLOOR AS PART OF A DRIVE BOTH TO BRING IN EXTRA REVENUE AND CONSOLIDATE THE LONDON INSURANCE MARKET 9301080188 930108 WORLD MARKETS TOKYO'S WEDDINGBELLS RALLY FIZZLES STOCKS FALL IN LONDON RATE GLOOM HURTS FRANKFURT PRICES A WALL STREET JOURNAL NEWS ROUNDUP EQUITIES FINISHED LITTLE CHANGED THURSDAY IN TOKYO FOLLOWING THE COLLAPSE OF A RALLY THAT WAS SPARKED BY NEWS OF THE JAPANESE CROWN PRINCE'S MARRIAGE PLANS LONDON PRICES WEAKENED AS INVESTORS FOUND FEW REASONS TO BUY FRANKFURT STOCKS FELL ON FLAGGING HOPES THAT THE GERMAN CENTRAL BANK WOULD CUT INTEREST RATES AND AFTER TRADING CLOSED THE CENTRAL BANK SAID IT LEFT ITS MAIN LENDING RATES UNCHANGED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 5970 POINTS WEDNESDAY EDGED DOWN 190 TO 1678098 ON FRIDAY THE NIKKEI FELL 2589 POINTS TO CLOSE THE MORNING SESSION AT 1675509 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES COMPARED WITH 1786 MILLION SHARES ON WEDNESDAY GAINERS OUTNUMBERED LOSERS 619316 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 626 POINTS WEDNESDAY ROSE 638 TO 129825 THE REPORTS OF JAPANESE CROWN PRINCE NARUHITO'S ENGAGEMENT TO BE MARRIED PERCEIVED AS GOOD NEWS SPARKED THE TECHNICAL RALLY FROM INDEXLINKED ARBITRAGE BUYING THAT LIFTED THE NIKKEI ABOVE 17000 TO AN INTRADAY HIGH OF 1705819 PARTICIPANTS EXPECTED THE MARKET TO RISE FROM BUYING OF ISSUES THAT COULD BENEFIT FROM AN IMPERIAL WEDDING SUCH AS PAPER JEWELRY AND DEPARTMENT STORE STOCKS THE RALLY ALSO WAS ATTRIBUTED TO SHORT COVERING OF FUTURES POSITIONS THE PURCHASES OF SECURITIES TO REPLACE SHARES PREVIOUSLY BORROWED FOR SHORT SALES MADE ON A BET THAT STOCK PRICES WOULD FALL AND ALLOW PROFITS BY MORE CHEAPLY REPLACING THE SHARES BUT THE NIKKEI COULDN'T SUSTAIN THAT LEVEL AND FUTURES PRICES STAGED A LATE PLUNGE AS THE POTENTIAL ECONOMIC BENEFITS OF THE COMING WEDDING WERE CONSIDERED HYPE AND INVESTORS WERE CONCERNED ABOUT POSSIBLE SELLING PRESSURE FOR FRIDAY'S SPECIAL QUOTATION ON JANUARY OPTIONS ADVANCING SHARES INCLUDED THOSE THAT COULD BENEFIT FROM CONTINUED RECOVERY IN US DEMAND IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 95 POINTS TO 28165 THE FT 30STOCK INDEX SLIPPED 15 POINTS TO 21933 VOLUME WAS 7557 MILLION SHARES COMPARED WITH 7013 MILLION SHARES A DAY EARLIER AFTER THE FOURTHQUARTER RALLY IN LONDON FROM FUTURESDRIVEN BUYING WHICH HAS DRIED UP RECENTLY INVESTORS HAVEN'T FOUND ANY CONVINCING EVIDENCE OF BRITAIN'S ECONOMIC REVIVAL OR NEW REASONS TO COMMIT FRESH CASH TO STOCKS AND WITH MUCH OF STOCK PRICES' RECENT STRENGTH BUILT ON HOPES FOR LOWER INTEREST RATES INVESTORS DECIDED TO LOCK IN PROFITS IN A MARKET THAT IS WIDELY CONSIDERED OVERVALUED IN ADDITION NEWS THAT GERMANY'S CENTRAL BANK FAILED TO REDUCE ITS INTEREST RATES YESTERDAY DISAPPOINTED LONDON MARKET PARTICIPANTS THE LACK OF A GERMAN LENDINGRATE REDUCTION MAKES IT DIFFICULT FOR BRITAIN TO CUT ITS RATES IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 1388 POINTS TO 154250 AFTER MOVING IN A RANGE OF ONLY 678 POINTS DURING THE RESTRAINED SESSION OF THE DAX STOCKS 28 DECLINED MARKET SENTIMENT WAS DEPRESSED BY A COMBINATION OF THE GLOOM ABOUT A GERMAN RATE CUT AND DATA ON GERMAN UNEMPLOYMENT AND INDUSTRIAL ORDERS THOUGH THE BUNDESBANK DIDN'T CHANGE ITS BENCHMARK LENDING RATES IT DID MARGINALLY EASE ITS FIXED RATE FOR SECURITIESREPURCHASE AGREEMENTS TO 86 FROM 875 WHICH WAS INTERPRETED AS SHOWING WILLINGNESS TO REACT TO GERMANY'S SLOWING ECONOMY ELSEWHERE IN EUROPE PARIS SHARE PRICES WEAKENED AS INVESTORS FAILED TO SHAKE THE NEWS ON GERMAN INTEREST RATES AMSTERDAM STOCKS WERE MIXED AFTER INVESTORS MOVED SLOWLY TO THE SIDELINES AFTER THE HOPEDFOR RATE CUTS IN GERMANY FAILED TO MATERIALIZE THE BUNDESBANK OUTCOME ALSO DAMPED SENTIMENT IN MADRID WHERE SHARE PRICES SLIPPED MILAN STOCKS WERE MOSTLY FIRMER AFTER NERVOUS TRADING THAT INCLUDED ALTERNATING WAVES OF BUYING AND SELLING THAT BUFFETED THE BOURSE STOCKHOLM SHARES TURNED LOWER FROM PROFITTAKING AFTER STEADY GAINS EARLIER THIS WEEK ZURICH STOCKS FELL BROADLY ON CONCERNS ABOUT CONSOLIDATION IN THE SWISS BANKING SECTOR THE WEAK SWISS FRANC AND WALL STREET'S EARLY SLUGGISHNESS YESTERDAY AMONG PACIFIC AND ASIAN BOURSES SYDNEY STOCKS' DECLINE CONTINUED AS PRICES WERE BATTERED BY UNCERTAINTY ABOUT THE AUSTRALIAN DOLLAR AND THE TIMING OF NATIONAL ELECTIONS SINGAPORE EQUITIES FINISHED MOSTLY LOWER AS PROFITTAKING CONTINUED AND BLUE CHIPS BORE THE BRUNT OF THE SELLING HONG KONG SHARES DROPPED SOLIDLY IN THIN TRADING ON PROFITTAKING IN THE WAKE OF THE PREVIOUS TWO DAYS' GAINS TAIPEI PRICES FELL IN THIN TRADING MARKING THE THIRD CONSECUTIVE SESSION OF HEAVY DECLINES ON POLITICAL UNCERTAINTY CONSTRUCTION AND PAPER STOCKS WERE THE BIGGEST LOSERS MANILA SHARES ADVANCED IN MODERATE VOLUME HELPED BY BARGAINHUNTING AND STRENGTH IN THE OIL SECTOR SEOUL SHARES AFTER TWO DAYS OF LOSSES ROSE AFTER CHOPPY TRADING AMID A FLOOD OF UNFOUNDED RUMORS INCLUDING TWO THAT NORTH KOREA'S PRESIDENT HAD DIED AND THAT SOUTH KOREAN FINANCIAL INSTITUTIONS WOULD BE ALLOWED TO EXPAND THEIR CAPITAL 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 9301080187 930108 AS TANKER LEAKS OIL OFF SHETLANDS SHIP SAFETY IMPROVEMENTS PROGRESS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL A MILESTONE IN SEAFARING SAFETY WAS REACHED JUST BEFORE TUESDAY'S SHIPWRECK OF AN OIL TANKER IN THE NORTH SEA THE WORLD'S FIRST OIL SUPERTANKER WITH A DOUBLE HULL WAS COMPLETED DEC 30 AT A DANISH SHIPYARD THE SUPERTANKER CHRISTENED THE ELEO MAERSK AND MADE BY ODENSE STEEL SHIPYARD LTD HAS TWO STEEL HULLS WELDED TOGETHER WITH A GAP BETWEEN THEM LIKE TWO BIG BATHTUBS STACKED ONE INSIDE THE OTHER THE IDEA IS SIMPLE AND IS ALREADY IN USE ON MANY SMALLER TANKERS AND CARGO SHIPS IF THE OUTER HULL GETS GASHED BY ROCKS THE INNER HULL MAY SURVIVE TO PREVENT A CATASTROPHIC OIL SPILL THE 298900TON ELEO MAERSK IS ONE RESULT OF AN UNUSUAL BURST OF DESIGN CREATIVITY IN THE WORLD SHIPBUILDING INDUSTRY SPURRED BY THE 1989 EXXON VALDEZ DISASTER OFF ALASKA AND SUBSEQUENT US SAFETY LEGISLATION NAVAL ARCHITECTS FROM JAPAN TO DENMARK ARE NOW COMPETING TO COME UP WITH WAYS TO BUILD A SAFER SUPERTANKER NO SHIP IS UNSINKABLE BUT SHIPBUILDERS SAY A SLIGHTLY SAFER WORLD TANKER FLEET WITH FEWER SPILLS THAN TODAY COULD GRADUALLY BE DEVELOPED OVER THE NEXT FEW DECADES PEOPLE ARE BEGINNING TO THINK ABOUT SAFETY IN NEW WAYS SAYS KENNETH RAWSON CHAIRMAN OF THE SAFETY COMMITTEE OF BRITAIN'S ROYAL INSTITUTION OF NAVAL ARCHITECTS ONE OF THE WORLD'S OLDEST SHIPDESIGN CLUBS FOLLOWING THE EXXON VALDEZ ACCIDENT HE SAYS THE USA STARTED A TRAIN OF THOUGHT GOING THAT HAS PRODUCED SAFETY IDEAS SOME OF THESE IDEAS COULD WELL BE EFFECTIVE HOWEVER NONE OF THE NEW DESIGN IDEAS MIGHT HAVE BEEN MUCH HELP TO THE BRAER THE LIBERIANREGISTERED TANKER THAT WAS BLOWN BY A NORTH SEA GALE ONTO THE ROCKY COAST OF BRITAIN'S SHETLAND ISLANDS ENGINE FAILURE AND POSSIBLE HUMAN ERROR RATHER THAN DESIGN FAULTS WERE APPARENTLY TO BLAME INITIAL REPORTS SUGGESTED THE SHIP LOST POWER WHEN SEA WATER FOULED ITS ENGINE EUROPEAN SHIPBUILDERS AND OWNERS INTERVIEWED WEDNESDAY SAID THEY WERE MYSTIFIED THAT THE CREW COULDN'T RESTART THE ENGINE ON A TANKER IF WATER SLOSHES INTO ONE FUEL TANK THE CREW CAN NORMALLY CLEAN THE FUEL LINES AND SWITCH TO ONE OF SEVERAL ALTERNATIVE TANKS ACCORDING TO CATO SVERERUP MANAGING DIRECTOR OF DENMARK'S BURMEISTER & WAIN SHIPYARD AS I CAN'T UNDERSTAND HOW AN ENGINE CAN STOP IN THE MANNER REPORTED ABOARD THE BRAER SAYS MR SVERERUP HOWEVER IT HAPPENED THOUGH ONCE THE SHIP WAS ADRIFT AND HIT THE ROCKS THERE WAS LITTLE ANYBODY COULD HAVE DONE TO PREVENT A SPILL REGARDLESS OF HOW YOU MAKE THE SHIP IT'S IMPOSSIBLE TO SEE HOW ANY SHIP COULD HAVE SURVIVED A MIDWINTER HURRICANE WITH THOSE ROCKS ALONG THE SHETLAND COAST HE SAYS AT BEST HE SAYS THE NEW SHIP DESIGNS MIGHT HAVE GIVEN RESCUE WORKERS MORE TIME BY KEEPING MORE OF THE OIL INSIDE THE STRICKEN SHIP FOR LONGER STILL MOST TANKER ACCIDENTS ARE NOWHERE NEAR AS DRAMATIC AS THE BRAER OR EXXON VALDEZ AND THAT'S WHERE THE NEW DESIGNS MAY PROVE HELPFUL A RECENT STUDY BY THE INTERNATIONAL MARITIME ORGANIZATION A UNITED NATIONS AGENCY BASED IN LONDON THAT REGULATES WORLD SHIPPING FOUND THAT DOUBLE HULLS WOULD PREVENT ANY OIL LEAKING OUT IN 80 OF CASES WHERE TANKERS RUN AGROUND THOUGH SHIPS HAVE BEEN MADE WITH DOUBLE HULLS SINCE THE 1970S LLOYD'S REGISTER OF SHIPPING NOW COUNTS 143 TANKERS AFLOAT WITH DOUBLE HULLS THE IDEA HAS REALLY TAKEN HOLD SINCE THE VALDEZ SPILL IN 1990 CONGRESS PASSED LEGISLATION REQUIRING THAT ALL NEW TANKERS PLYING US WATERS HAVE DOUBLE HULLS OLD TANKERS CAN KEEP SAILING UNTIL AS LATE AS 2010 BECAUSE OF THE IMPORTANCE OF THE US IN WORLD OIL TRADE THE LAW HAS AFFECTED SHIPYARDS AROUND THE WORLD FOLLOWING THE US LEAD THE INTERNATIONAL MARITIME ORGANIZATION ADOPTED NEW REGULATIONS THAT STARTING JULY 3 WILL REQUIRE ALL NEW TANKERS ORDERED FROM SHIPYARDS WORLDWIDE TO HAVE DOUBLE HULLS OR EQUIVALENT SAFETY FEATURES A DOUBLE HULL ADDS 10 TO 15 TO THE PRICE OF A 100 MILLION SUPERTANKER ONE SHIPBUILDING EXECUTIVE ESTIMATES SUPERTANKERS ARE TYPICALLY 330 TO 350 METERS LONG 50 TO 60 METERS WIDE AND MORE THAN 30 METERS HIGH WITH A METER EQUALING 33 FEET ON SO HUGE A SHIP BUILDING A DOUBLE HULL IS AN ENGINEERING FEAT THAT REQUIRES A HONEYCOMB OF STEEL GIRDERS TO HOLD THE HULLS TWO TO THREE METERS APART WITH ALL THAT SUPPORTING STEEL THE RESULT IS NOT ONLY A SECOND SKIN FOR PROTECTION BUT ALSO A STRUCTURALLY STRONGER SHIP THE PRICE HOWEVER IS A SHIP MORE VULNERABLE TO CORROSION ALL THE INTRICATE STEELWORK MEANS MORE SURFACE AREA TO RUST TO COMPENSATE THE INTERNATIONAL MARITIME ORGANIZATION IS PREPARING REGULATIONS REQUIRING MORE FREQUENT INSPECTIONS OF TANKERS A COMPETING DESIGN SOCALLED MIDDECK CONSTRUCTION IS BEING PROMOTED AT INTERNATIONAL MARITIME ORGANIZATION AND AMONG OIL COMPANIES BY JAPANESE SHIPBUILDER MITSUBISHI HEAVY INDUSTRIAL CORP UNDER THIS PLAN A TANKER WOULD BE BUILT LIKE A DOUBLE BOILER ON A KITCHEN STOVE WITH ONE SHALLOW POT NESTLED INSIDE A DEEPER OUTER POT BOTH POTS WOULD CARRY OIL BUT THE OIL IN THE OUTER POT WOULDN'T BE ALLOWED TO RISE HIGHER THAN THE SEA LEVEL OUTSIDE AN OFFICIAL OF THE UN AGENCY EXPLAINS THE IDEA IS THAT IF THE OUTER HULL IS GASHED THE PRESSURE OF THE OIL INSIDE THE SHIP WILL BE LESS THAN THAT OF THE SEA WATER OUTSIDE RESULT SOME WATER WILL FLOW INTO THE SHIP RATHER THAN OIL OUT OF IT A THIRD DESIGN IS BEING PROMOTED BY A CONSORTIUM OF FIVE EUROPEAN SHIPBUILDERS INCLUDING SPAIN'S ASTILLEROS ESPANOLES SA DUBBED E3 FOR ECOLOGICAL ECONOMICAL AND EUROPEAN THIS WOULD HAVE A DOUBLE HULL AND MANY HIGHPOWERED PUMPS TO MOVE OIL FROM ANY DAMAGED COMPARTMENT ON THE SHIP TO AN UNDAMAGED AREA CONVENTIONAL TANKERS ALREADY HAVE PIPING AND PUMPS BETWEEN COMPARTMENTS BUT THEY ARE FOR LOADING AND UNLOADING OIL OR BALLAST WATER PERHAPS THE MOST UNUSUAL IDEA WOULD BORROW SOME WORLD WAR II TECHNOLOGY ACCORDING TO THE ROYAL INSTITUTION'S MR RAWSON IF A BULLET PIERCED THE FUEL TANK OF A BRITISH SPITFIRE FIGHTER THE PILOT HAD AN AUTOMATIC DEFENSE MECHANISM THE TANK WAS COATED WITH A STICKY MATERIAL THAT INSTANTLY GUMMED UP THE HOLE AND PLUGGED THE LEAK ONE BRITISH ENGINEER HAS PROPOSED APPLYING THE SAME IDEA TO OIL TANKER HOLDS BY COATING THEM WITH A GOOEY POLYMER 9301080186 930108 HOSPITALITY FRANCHISE SYSTEMS PARSIPPANY NJ HOSPITALITY FRANCHISE SYSTEMS INC SAID THAT IT ENTERED INTO 110 FRANCHISE AGREEMENTS LAST MONTH REPRESENTING 10179 HOTEL ROOMS THE FRANCHISER OF DAYS INN HOLIDAY INN AND RAMADA HOTELS SAID THAT IT ENTERED INTO 185 AGREEMENTS IN THE FOURTH QUARTER OF 1992 REPRESENTING 16443 HOTEL ROOMS FOR ALL OF 1992 HFS GRANTED 458 FRANCHISES FOR A TOTAL OF 40116 HOTEL ROOMS 9301080185 930108 ALLIEDSIGNAL AKZO PLAN VENTURE MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC AND AKZO NV SAID THEY SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE TO MAKE CARPET FIBERS IN EUROPE ALLIEDSIGNAL WOULD BE THE MAJORITY PARTNER IN THE VENTURE WHICH IS EXPECTED TO BE COMPLETED BY MIDYEAR ALLIEDSIGNAL AN AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS COMPANY HAS A CARPET FIBER BUSINESS THAT TOTALS ABOUT 400 MILLION A YEAR IN SALES AKZO A DUTCH CHEMICAL COMPANY HAS ABOUT 75 MILLION A YEAR FROM COMMERCIAL CARPET SALES IN EUROPE 9301080184 930108 TUESDAY MORNING CORP'S SALES DALLAS TUESDAY MORNING CORP SAID SALES FOR THE QUARTER ENDED DEC 31 INCREASED 317 TO 707 MILLION FROM 537 MILLION A YEAR EARLIER THE SPECIALTY RETAILER SAID COMPARABLESTORE SALES FOR THE QUARTER AT STORES OPEN FOR MORE THAN ONE YEAR INCREASED 95 THE COMPANY SAID SALES FOR LAST YEAR INCREASED 295 TO 1598 MILLION FROM 1234 MILLION FOR 1991 COMPARABLESTORE SALES INCREASED 82 FOR THE YEAR 9301080183 930108 TECHNOLOGY AT&T AS EXPECTED WILL BUY 20 STAKE IN CANADA'S UNITEL TORONTO AMERICAN TELEPHONE & TELEGRAPH CO AS EXPECTED AGREED TO PURCHASE A 20 STAKE IN UNITEL COMMUNICATIONS INC WHICH WILL EXPAND AT&T'S GLOBAL SERVICE MARKETING AND GREATLY STRENGTHEN CANADA'S NO2 LONGDISTANCE CARRIER THE AGREEMENT CALLS FOR AT&T TO INVEST 150 MILLION CANADIAN DOLLARS US1172 MILLION IN NETWORK EQUIPMENT C40 MILLION IN CASH AND A TECHNICAL CONTRIBUTION OF UNDETERMINED VALUE FROM AT&T'S RESEARCH ARM AT&T BELL LABORATORIES AT&T WILL ALSO PUT TWO REPRESENTATIVES ON UNITEL'S NINEMEMBER BOARD UNITEL WHICH COMPETES WITH THE STENTOR NETWORK RUN BY CANADA'S ESTABLISHED PHONE COMPANIES INCLUDING BELL CANADA ENTERPRISES WILL GET AN UNDETERMINED AMOUNT OF FUTURE TRAFFIC FROM AT&T UNITEL IS 60 OWNED BY CANADIAN PACIFIC LTD AND 40 BY ROGERS COMMUNICATIONS INC THEIR STAKES WILL BE REDUCED TO 48 AND 32 RESPECTIVELY THE THREE PARTNERS WHOSE BOARDS MUST STILL APPROVE THE PURCHASE SAID THEY WILL IMMEDIATELY PUMP C200 MILLION INTO UNITEL AT&T'S SHARE OF THE CASH INFUSION IS 40 MILLION BASED ON ITS 20 STAKE IN ADDITION UNITEL SAID IT WOULD INSTALL AT&T SWITCHING EQUIPMENT AND PHASE OUT PURCHASES OF EQUIPMENT MADE BY NORTHERN TELECOM LTD A SISTER COMPANY OF BELL CANADA 9301080182 930108 SOLO SERVE'S SALES INCREASE 25 SAN ANTONIO TEXAS SOLO SERVE CORP SAID SALES FOR THE FIVEWEEK PERIOD ENDED SATURDAY INCREASED 25 TO 257 MILLION FROM 206 MILLION A YEAR EARLIER THE DISCOUNT RETAIL CHAIN SAID ITS DECEMBER SALES FOR STORES OPEN MORE THAN ONE YEAR INCREASED 27 FROM A YEAR EARLIER SOLO SERVE ALSO SAID ITS YEARTODATE SALES FOR THE 48 WEEKS ENDED JAN 2 ROSE 25 TO 1459 MILLION FROM 1165 MILLION FOR THE YEAREARLIER PERIOD YEARTODATE SALES FOR STORES OPEN MORE THAN ONE YEAR INCREASED 34 9301080181 930108 AMAX TO RELOCATE COAL DIVISION INDIANAPOLIS IND AMAX INC SAID ITS COAL DIVISION WILL RELOCATE ITS HEADQUARTERS TO HOUSTON FROM INDIANAPOLIS BY MIDYEAR AFFECTING ABOUT 180 EMPLOYEES THE COAL DIVISION PART OF AMAX'S AMAX ENERGY INC UNIT ALSO WILL CLOSE OFFICES IN GREENWICH CONN AND GILLETTE WYO THE COMPANY SAID 35 TO 40 EMPLOYEES WILL BE TRANSFERRED TO HOUSTON AND 30 TO 40 EMPLOYEES WILL BE MOVED TO OTHER REGIONAL OFFICES BETWEEN 95 AND 115 POSITIONS WILL BE ELIMINATED AND THOSE EMPLOYEES WILL RECEIVE A SEVERANCE PACKAGE IT SAID AMAX COAL INDUSTRIES EMPLOYS ABOUT 2800 PEOPLE IN THE US 9301080180 930108 GENERAL MOTORS TO IDLE 2 PLANTS FOR 2 WEEKS DETROIT GENERAL MOTORS CORP SAID IT WILL IDLE TWO PLANTS FOR TWO WEEKS BECAUSE OF SLOW SALES GM SAID ITS ARLINGTON TEXAS AND OSHAWA ONTARIO ASSEMBLY PLANTS WERE TEMPORARILY CLOSED THIS WEEK AND WILL BE IDLE NEXT WEEK THOSE PLANTS BUILD THE BUICK ROADMASTER CHEVROLET CAPRICE CADILLAC FLEETWOOD BROUGHAM CHEVROLET LUMINA AND BUICK REGAL GM SAID SEVERAL OF ITS ASSEMBLY PLANTS ARE SCHEDULED TO WORK DAILY AND SATURDAY OVERTIME CHRYSLER CORP SAID ITS DETROIT ASSEMBLY PLANT WHICH BUILDS THE JEEP GRAND CHEROKEE SPORT UTILITY VEHICLE WILL WORK SATURDAY OVERTIME ALTOGETHER THE 10 MAJOR AUTO MAKERS PLAN TO BUILD 92865 CARS THIS WEEK MORE THAN TRIPLE THE 24672 BUILT A YEAR AGO ALL AUTO ASSEMBLY PLANTS IN THE US WERE CLOSED LAST WEEK IN OBSERVANCE OF THE HOLIDAY SEASON THE PREVIOUS WEEK PRODUCTION FIGURES IN THE CHART REFER TO THE LAST WEEK THE AUTO MAKERS BUILT CARS THE WEEK OF DEC 21 9301080179 930108 PANAMA CONTRACTS WITH TEXACO PANAMA CITY PANAMA PANAMA'S NATIONAL ASSEMBLY VOTED TO RATIFY A NEW 20YEAR CONTRACT BETWEEN THE PANAMANIAN GOVERNMENT AND TEXACO INC TO OPERATE AND UPGRADE ITS REFINERY TEXACO BASED IN WHITE PLAINS NY WILL INVEST ABOUT 776 MILLION TO INCREASE THE REFINERY'S CAPACITY BY 20000 BARRELS A DAY TO 60000 BARRELS OTHER UPGRADES WILL BE MADE TO INCREASE EFFICIENCY AND PRODUCT YIELDS THE OIL COMPANY SAID THE INVESTMENT WILL BE MADE OVER A PERIOD OF FIVE YEARS BEGINNING THIS YEAR 9301080177 930108 EPA TO APPROVE CLEAN AIR ACT WAIVER ALLOWING TIGHTER RULES IN CALIFORNIA BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY WILL APPROVE A WAIVER ALLOWING CALIFORNIA TO IMPOSE AIR QUALITY STANDARDS THAT EXCEED THOSE OF THE FEDERAL GOVERNMENT DEPARTING EPA ADMINISTRATOR WILLIAM REILLY SAID THE WAIVER WHICH WAS INITIALLY EXPECTED TO BE ROUTINE WAS OPPOSED BY THE AUTOMOBILE INDUSTRY AND WAS DELAYED BY WHITE HOUSE OFFICIALS UNTIL YESTERDAY UNDER THE WAIVER CALIFORNIA WILL BE PERMITTED TO IMPLEMENT A LOWEMISSION VEHICLE PROGRAM THAT INCLUDES AUTOEMISSION STANDARDS THAT EXCEED THE REQUIREMENTS OF FEDERAL LAW UNDER THE 1990 CLEAN AIR ACT THE STANDARDS WERE SET IN PLACE BY THE STATE AS AN INTERIM STEP TO IMPROVE AIR QUALITY BY 2003 10 OF ALL VEHICLES SOLD IN CALIFORNIA WILL BE REQUIRED TO BE FREE OF EMISSIONS WHICH IS ASSUMED TO MEAN THAT THEY BE POWERED BY ELECTRICITY AT A NEWS CONFERENCE MR REILLY SAID THE CALIFORNIA WAIVER WOULD ALLOW THE STATE TO CONTINUE ITS CUTTINGEDGE ROLE IN IMPROVING AIR QUALITY THE ACTION IS EXPECTED TO TRIGGER ENACTMENT OF THE SAME STANDARDS IN OTHER STATES INCLUDING NEW YORK AND MASSACHUSETTS MIKE STANTON DIRECTOR OF THE AMERICAN AUTOMOBILE MANUFACTURERS ASSOCIATION WHICH REPRESENTS GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP SAID HE WAS UNABLE TO COMMENT UNTIL HE SAW THE WAIVER BUT HE SAID THAT WE WOULD BE DISAPPOINTED IF IT DIDN'T INCLUDE CERTAIN CAVEATS REQUESTED BY THE AUTO INDUSTRY AMONG WHICH WAS EXCLUSION FROM THE WAIVER OF THE REQUIREMENT THAT ALL CALIFORNIA VEHICLES BE EMISSIONFREE BY 2003 DON ZINGER ASSISTANT EPA DIRECTOR FOR THE OFFICE OF MOBILE SOURCES SAID THE WAIVER DIDN'T INCLUDE THE CAVEATS REQUESTED BY THE AUTO INDUSTRY IN ADDITION DESPITE PROTESTS FROM ENVIRONMENTAL GROUPS THE EPA IS HOPING TO PROPOSE THE SPECIAL REGULATORY TREATMENT THE BUSH ADMINISTRATION PREVIOUSLY ANNOUNCED FOR ETHANOL UNDER THE CLEAN AIR ACT PLANS TO ISSUE THE PROPOSAL WHICH WAS DESIGNED TO ENCOURAGE USE OF THE CORNDERIVED FUEL ADDITIVE WERE ANNOUNCED BEFORE THE ELECTION FINAL ACTION WOULD OCCUR UNDER THE CLINTON ADMINISTRATION THE ENVIRONMENTAL GROUPS CONTEND THAT EVEN ISSUING THE PROPOSAL WHICH WOULD BE PART OF A PACKAGE OF PROPOSED RULES REQUIRING CLEANERBURNING FUEL IN THE NATION'S SMOGGIEST CITIES WOULD GIVE AN ADVANTAGE TO THE CORN GROWERS AND OTHER GROUPS SUPPORTING THE PACKAGE SEPARATELY MR REILLY FORMALLY RELEASED A STUDY DECLARING PASSIVE SMOKE A CLASS A LUNG CARCINOGEN MR REILLY SAID THAT ROUGHLY 20 OF ALL LUNG CANCERS CAUSED BY FACTORS OTHER THAN SMOKING WERE ATTRIBUTABLE TO ENVIRONMENTAL TOBACCO SMOKE A RISK HE PLACED AT ABOUT ONE IN 1000 IN OTHER WORDS SAID MR REILLY THE RISKS ASSOCIATED WITH ENVIRONMENTAL TOBACCO SMOKE ARE AT LEAST AN ORDER OF MAGNITUDE CONSIDERABLY MORE THAN THEY ARE FOR VIRTUALLY ANY CHEMICAL OR RISK THAT EPA REGULATES HEALTH AND HUMAN SERVICES SECRETARY LOUIS SULLIVAN WHO ALSO ATTENDED THE NEWS CONFERENCE SAID THE NATIONAL CENTER FOR HEALTH STATISTICS COMPLETED A REPORT ON THE MATTER TOO RECENTLY TO BE CONSIDERED IN YESTERDAY'S EPA REPORT IT FOUND THAT INFANTS ARE THREE TIMES MORE LIKELY TO DIE OF SUDDEN INFANT DEATH SYNDROME IF THEIR MOTHERS SMOKED DURING AND AFTER PREGNANCY AND TWICE AS LIKELY TO DIE FROM THIS SYNDROME IF THEIR MOTHERS STOPPED SMOKING DURING PREGNANCY BUT RESUMED FOLLOWING BIRTH THE TOBACCO INDUSTRY HAS BEEN SEVERELY CRITICAL OF THE EPA'S PASSIVE SMOKING REPORT WHICH WAS RELEASED IN TWO SUCCESSIVE DRAFTS BEFORE THE FINAL REPORT WAS LEAKED EARLIER THIS WEEK ASKED ABOUT COMPLAINTS FROM THE TOBACCO INDUSTRY THAT THE REPORT SET ITS CONFIDENCE LEVEL AT 90 RATHER THAN 95 DR SULLIVAN LASHED OUT AT THE RIDICULOUS POSITION OF THE TOBACCO INDUSTRY I KNOW OF NO INDUSTRY THAT HAS SO LITTLE CREDIBILITY IN THE EYES OF THE PUBLIC HE SAID MR REILLY SAID THE 90 CONFIDENCE LEVEL WAS RECOMMENDED BY MEMBERS OF THE SCIENTIFIC COMMUNITY HE ALSO SAID THAT THE REPORT WAS HAMPERED SOMEWHAT BY THE DIFFICULTY OF FINDING A CONTROL GROUP THAT HADN'T BEEN EXPOSED TO PASSIVE SMOKE 9301080176 930108 ROSS STORES POSTS GAINS NEWARK CALIF ROSS STORES INC SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY ROSE 18 TO 174 MILLION FROM 147 MILLION A YEAR EARLIER COMPARABLESTORE SALES WERE UP 8 FOR THE PERIOD FOR THE 11 MONTHS ENDED SATURDAY THE DISCOUNT RETAILER'S SALES TOTALED 997 MILLION A 13 JUMP FROM 884 MILLION A YEAR AGO 9301080175 930108 US SHOE'S SALES INCREASE CINCINNATI US SHOE CORP SAID SAMESTORE SALES FOR THE FIVE WEEKS ENDED JAN 2 WERE UP 31 FROM A YEAR AGO TOTAL SALES INCREASED 03 TO 2825 MILLION FROM 2817 MILLION SALES FOR US SHOE'S WOMEN'S APPAREL UNIT INCREASED 08 WHILE SAMESTORE SALES FOR THE GROUP ROSE 36 LENSCRAFTERS SALES ROSE 52 AS SAMESTORE SALES GREW 21 SALES FOR US SHOE'S FOOTWEAR UNIT FELL 127 AS SAMESTORE SALES ROSE 11 US SHOE SAID SALES FOR ITS APPAREL DIVISION WERE GENERALLY DISAPPOINTING AND IT IS CONCERNED ABOUT THE CURRENT SOFTNESS IN THE FOOTWEAR BUSINESS THE OUTLOOK FOR THE FOURTH QUARTER IS VERY CAUTIOUS US SHOE SAID 9301080174 930108 WHO'S NEWS COMPREHENSIVE CARE CORP COMPREHENSIVE CARE CORP ST LOUIS FRED C FOLLMER WAS NAMED CHIEF FINANCIAL OFFICER SINCE 1986 MR FOLLMER HAS WORKED AS A CONSULTANT TO THE MEDICAL SERVICES INDUSTRY HE SUCCEEDS DENNIS DICKEY WHO AFTER A BRIEF TRANSITION PERIOD WILL LEAVE COMPREHENSIVE CARE TO PURSUE OTHER INTERESTS THE COMPANY SAID 9301080173 930108 DIGICON BUYS VESSEL FROM MOBIL HOUSTON DIGICON INC COMPLETED ITS PURCHASE OF A SEISMIC VESSEL FROM MOBIL CORP FOR 78 MILLION AND OTHER CONSIDERATIONS AS PART OF THE TRANSACTION DIGICON SOLD THE VESSEL TO A UNIT OF GC RIEBER GROUP OF BERGEN NORWAY THE VESSEL WILL BE CHARTERED BACK TO DIGICON FOR UP TO 13 YEARS THE SEISMIC DATA ACQUISITION AND PROCESSING COMPANY SAID IT PREFERS TO CHARTER ITS VESSELS RATHER THAN OWN THEM 9301080172 930108 JAPANESE MINICAR SALES FELL 87 LAST YEAR INDUSTRY GROUP SAYS TOKYO SALES OF MINICARS IN JAPAN DROPPED 87 IN 1992 FOR THE SECOND CONSECUTIVE YEAR OF DECLINE THE JAPAN MINIVEHICLE ASSOCIATION SAID THE ASSOCIATION SAID THAT SALES TOTALED 1626009 UNITS DOWN FROM 1780187 UNITS IN 1991 THE TWOYEAR DROP WAS THE FIRST SINCE 1975 AND MIRRORS A TWOYEAR SLUMP IN SALES OF PASSENGER CARS TRUCKS AND BUSES REPORTED EARLIER IN THE WEEK AN ASSOCIATION SPOKESMAN SAID THAT THE LATEST DECLINE ILLUSTRATES THE EROSION OF MINICARS' RELATIVE IMMUNITY TO ECONOMIC CONDITIONS AMID PERSISTENTLY ANEMIC PERSONAL CONSUMPTION IN 1991 MINICAR SALES SLIPPED 12 BUT THE DECLINE WAS ATTRIBUTED TO BRISK SALES IN THE PREVIOUS YEAR FOLLOWING THE MARCH 1990 INTRODUCTION OF A NEW MAXIMUM STANDARD FOR ENGINE CAPACITY LOOKING AHEAD THE SPOKESMAN SAID THAT MINICAR SALES ARE LIKELY TO START EXCEEDING YEAREARLIER LEVELS FROM APRIL GIVEN AN EXTREMELY LOW BASE OF COMPARISON IN 1992 BUT HE SAID THAT SALES FOR THE FULL YEAR MAY BE FLAT SALES OF MINI PASSENGER CARS TOTALED 774197 UNITS IN 1992 DOWN 79 FROM 840344 UNITS IN 1991 WHILE SALES OF MINITRUCKS WERE DOWN 94 TO 851812 UNITS FROM 939843 UNITS SUZUKI MOTOR CORP SOLD 482199 UNITS DOWN 6 FROM A YEAR EARLIER FOLLOWED BY DAIHATSU MOTOR CO'S 408234 UNITS DOWN 91 MITSUBISHI MOTORS CORP WHICH RANKED THIRD SOLD 250023 UNITS DOWN 91 FOR DECEMBER OVERALL MINICAR SALES FELL 71 TO 121204 UNITS FROM 130413 UNITS THE ASSOCIATION SAID 9301080171 930108 INTERNATIONAL CHINA'S TRADE GREW 221 IN '92 BEIJING CHINA SAID ITS TRADE GREW 221 IN 1992 TO 165 BILLION EXPORTS ROSE 183 TO 85 BILLION WHILE IMPORTS INCREASED 264 TO 80 BILLION CHINA'S FOREIGN ECONOMIC RELATIONS AND TRADE MINISTER LI LANQING SAID MR LI SAID HE EXPECTS IMPORTS TO CONTINUE TO GROW IN AREAS SUCH AS WATER CONSERVANCY FERTILIZERS AND PESTICIDES AND TELECOMMUNICATIONS THE GOVERNMENT HAS ATTRIBUTED THE SURGE IN FOREIGN TRADE LARGELY TO A NEW ECONOMIC REFORM DRIVE LAUNCHED BY SENIOR LEADER DENG XIAOPING EARLY LAST YEAR THE OFFICIAL MEDIA HAS PREDICTED AN EVEN BIGGER GROWTH IN TRADE THIS YEAR 9301080170 930108 INTERNATIONAL TOYOTA BUYS STAKE IN DISTRIBUTOR TOKYO TOYOTA MOTOR CORP SAID IT TOOK A MINORITY STAKE IN A NEW SPANISH DISTRIBUTOR TO GIVE LONGTERM STABILITY TO ITS SALES ACTIVITIES IN SPAIN ESTABLISHED IN DECEMBER BY TOYOTA'S DISTRIBUTOR IN SPAIN NIPAUTO SA MADRIDBASED TOYOTA ESPANA SL IS CAPITALIZED AT ROUGHLY 15 BILLION YEN 12 MILLION TOYOTA NOW HOLDS A 35 STAKE AND NIPAUTO OWNS THE REMAINDER NIPAUTO'S DISTRIBUTORSHIP RIGHTS AGREEMENTS WITH ITS ROUGHLY 40 INDEPENDENT DEALERSHIPS AND ITS APPROXIMATELY 60 EMPLOYEES WILL BE TRANSFERRED TO TOYOTA ESPANA UNDER THE AGREEMENT NIPAUTO WILL ACT AS A HOLDING COMPANY TOYOTA SAID TOYOTA SOLD ABOUT 2500 UNITS IN SPAIN IN 1992 9301080169 930108 JAY JACOBS SALES CHANGE LITTLE SEATTLE JAY JACOBS INC REPORTED SALES FOR THE FIVE WEEKS ENDED JAN 2 TOTALING 229 MILLION ABOUT THE SAME AS LAST YEAR SALES IN COMPARABLE STORES EDGED UP 1 FOR THE PERIOD FOR THE 44 WEEKS JAY JACOBS SALES JUMPED 12 TO 1423 MILLION FROM 127 MILLION COMPARABLESTORE SALES DROPPED 1 FOR THE 44 WEEKS 9301080168 930108 DELTA AIR TRAFFIC UP ATLANTA DELTA AIR LINES REPORTED DECEMBER TRAFFIC PRACTICALLY UNCHANGED COMPARED WITH DECEMBER 1991 WHILE FOR THE ENTIRE YEAR TRAFFIC ROSE 19 THE CARRIER FLEW 626 BILLION REVENUE PASSENGER MILES LAST MONTH COMPARED WITH 621 BILLION IN DECEMBER 1991 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE DECEMBER LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL TO 572 FROM 591 FOR 1992 TRAFFIC INCREASED TO 8051 BILLION REVENUE PASSENGER MILES FROM 6737 BILLION LOAD FACTOR ROSE TO 613 FROM 604 9301080167 930108 MEXICO'S NEW PESO MAY LOOK LIKE LESS BUT IT'S WORTH MORE CHANGE LEADS TO COMPLAINTS WITH OLD NOTES EVERYONE WAS A MILLIONAIRE OF SORTS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY MEXICO'S EFFORT TO MAKE THE PESO LESS CUMBERSOME TO USE IN STREETLEVEL COMMERCE HAS RESULTED IN CONFUSION AND COMPLAINTS THE PAST 16 YEARS OF ECONOMIC CRISES WITNESSED THE SHRINKING OF THE MEXICAN CURRENCY TO 3100 PESOS TO THE DOLLAR FROM 125 TO THE DOLLAR IN 1976 UNFORTUNATELY AS THE BANK NOTES THAT MEXICANS EARNED GOT LARGER THE PURCHASING POWER THE CURRENCY REPRESENTED GOT SMALLER BUT IT HAS BEEN FIVE YEARS NOW SINCE MEXICO ENDURED A MAJOR DEVALUATION AND INFLATION IS EXPECTED TO FALL TO A SINGLE DIGIT THIS YEAR SO THE GOVERNMENT DECIDED THE TIME WAS RIGHT TO REPLACE THE OLD DEVALUED PESOS WITH A NEW SIMPLER CURRENCY THE NUEVO PESO THE NEW PESO WHICH BEGAN CIRCULATING JAN 1 LOPS THREE ZEROS OFF THE OLD ONE INSTEAD OF 3100 PESOS TO THE US DOLLAR THE NEW EXCHANGE RATE IS 31 NUEVOS PESOS TO THE DOLLAR SARDONIC MEXICANS WERE FOND OF SAYING THAT THE OLD PESO MADE EVERYONE A MILLIONAIRE STILL MOST MEXICANS SUPPORT THE CONCEPT OF SIMPLIFYING A SYSTEM THAT HAD TURNED EVEN BASIC TRANSACTIONS INTO AN UNWIELDY MATHEMATICAL EXERCISE BUT THE IMMEDIATE AFTERMATH OF THE CURRENCY REFORM HAS INCLUDED DISORDERLY SCENES IN BANKS BEWILDERMENT AMONG FOREIGN TOURISTS AND COMPLAINTS THAT MERCHANTS ARE TAKING ADVANTAGE OF THE CONFUSION TO RAISE PRICES THE SMALL SIZE OF THE NEW COIN WHICH IS ABOUT THE SIZE OF A US NICKEL HAS PROVOKED THE MOST CARPING WHILE THE NEWLY ISSUED BANK NOTES ARE IDENTICAL TO OLD ONES EXCEPT FOR THE ELIMINATION OF THE THREE ZEROS THE NEW COINS ARE MUCH SMALLER THAN THE OLD 1000 PESO COIN WHICH WAS ABOUT THE SIZE OF A US 50CENT PIECE AND THE NEW COINS ARE MADE OF A LIGHT ALLOY INSTEAD OF SILVER OR COPPER THE GOVERNMENT SAYS IT IS MORE ECONOMICAL TO MAKE THE COINS SMALLER AND WITH CHEAPER METALS PERHAPS BUT WHEN CRISTINA RAMIREZ A CASHIER AT A SANBORN'S RESTAURANT IN THE MEXICAN CAPITAL RECEIVED HER FIRST NUEVO PESO THIS WEEK SHE WAS SO TAKEN ABACK THAT SHE ALMOST SHUT THE CASH REGISTER DRAWER ON HER HAND THE POOR LITTLE THING SHE SAYS IF SHE SAW A NUEVO PESO LYING ON THE STREET MS RAMIREZ SAYS SHE ISN'T SURE SHE'D DEIGN TO RETRIEVE IT INDEED IF THE CURRENCY CHANGE WAS MEANT TO HERALD A NEW ERA OF ECONOMIC STABILITY UNDER PRESIDENT CARLOS SALINAS DE GORTARI SOME SAY THE NEW COINS FALL SHORT OF THE MARK THE NUEVO PESO WROTE A COLUMNIST IN THE DAILY EXCELSIOR IS A CARICATURE AND IT GIVES THE FEELING OF ECONOMIC DISGRACE IT DOESN'T REPRESENT THE REFORMS OF PRESIDENT SALINAS DANIEL AGUIRRE A CONSTRUCTION WORKER HAS A MORE PRACTICAL COMPLAINT THE NEW COINS FALL THROUGH HOLES IN HIS PANTS POCKETS SOMETHING HE NOTES THAT MEXICANS HAVE LOTS OF IN THE WAKE OF THE LONG ECONOMIC CRISIS FOR AMERICAN TOURISTS THE CURRENCY SWITCH HAS ADDED A NEW ELEMENT OF ADVENTURE SIGNS AT THE MEXICO CITY AIRPORT EXPLAIN THE SYSTEM BY WHICH EITHER NEW PESOS OR OLD ONES CAN BE USED UNTIL THE CENTRAL BANK RETIRES THE OLD MONEY TO AVOID CONFUSION SETH ARNOLD A TOURIST FROM NASHVILLE TENN KEEPS NUEVOS PESOS IN HIS LEFT PANTS POCKET AND THE OLD PESOS IN HIS RIGHT POCKET BUT HE USUALLY ENDS UP PAYING FOR PURCHASES WITH DOLLARS FROM HIS WALLET WHEN IN DOUBT MEXICANS ALWAYS ACCEPT DOLLARS HE SAYS 9301080166 930108 LEATHERSPRAY PRODUCT RECALLED AS POSSIBLE CAUSE OF ILLNESSES ATLANTA THE USE OF A NEW SPRAY TO TREAT LEATHER MAY HAVE CAUSED AS MANY AS 1000 PEOPLE IN 18 STATES TO BECOME ILL ACCORDING TO A REPORT BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION THE PRODUCT WILSONS LEATHER PROTECTOR MADE BY WILSONS SUEDE & LEATHER IN MINNEAPOLIS WAS RECALLED FROM 600 STORES NATIONWIDE IN LATE DECEMBER AFTER REPORTS SURFACED IN OREGON THAT SEVERAL PEOPLE HAD COMPLAINED OF SHORTNESS OF BREATH AND COUGHING AFTER USING THE PRODUCT THE CDC SAID IT IS STILL TRYING TO DETERMINE HOW USING THE PRODUCT OR HOW THE PRODUCT ITSELF MAY HAVE CONTRIBUTED TO THE SYMPTOMS A SPOKESMAN FOR WILSONS A UNIT OF MELVILLE CORP IN RYE NY SAID THE COMPANY IS URGING CUSTOMERS NOT TO USE THE FIVEOUNCE VERSION OF THE PRODUCT WHICH WAS INTRODUCED IN NOVEMBER THAT VERSION CONTAINED A NEW SOLVENT AMONG OTHER CHANGES THE SPOKESMAN FOR WILSONS SAID THE COMPANY STILL DOESN'T KNOW WHETHER THE SPRAY ITSELF CAUSED THE PROBLEMS BUT HE ADDED THAT WILSONS IS COOPERATING FULLY WITH A CDC INVESTIGATION OF THE REPORTED ILLNESSES 9301080165 930108 SOFTWARE MAKERS TO POST GAINS FOR 4TH QUARTER BUT PC APPLICATION FIRMS EXPECT SLUGGISH RESULTS ON SHIFT IN THE INDUSTRY BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL SUPPLIERS OF SOFTWARE OPERATING SYSTEMS ELECTRONIC GAMES AND HIGHEND DATABASES ARE EXPECTED TO POST STRONG GAINS FOR THE FOURTH QUARTER WHILE PEDDLERS OF PERSONALCOMPUTER APPLICATIONS ARE LIKELY TO REPORT SLUGGISH PERFORMANCES THE RESULTS SHOULD PROVIDE FRESH EVIDENCE OF A SHIFT IN THE SOFTWARE INDUSTRY WHERE SUPPLIERS OF APPLICATIONS ONCE REIGNED WITH THE EXCEPTION OF MICROSOFT CORP PC APPLICATION COMPANIES ARE LOWGROWTH STORIES SAID DAVID READERMAN AN ANALYST AT LEHMAN BROTHERS THE HIGH GROWTH IS IN NETWORKING NETWORKED DATABASES AND OPERATING SYSTEMS MICROSOFT AS USUAL IS ANTICIPATED TO LEAD THE SOFTWARE HIT PARADE OF THE LARGEST APPLICATION COMPANIES ONLY MICROSOFT IS EXPECTED TO POST SIZABLE GAINS ON THE STRENGTH OF ITS WINDOWS PROGRAMS MR READERMAN ESTIMATES MICROSOFT EARNED 81 CENTS A SHARE OR 2428 MILLION ON STAGGERING REVENUE OF 950 MILLION WHICH IS ROUGHLY EQUAL TO A YEAR OF SALES BY MICROSOFT'S NEAREST RIVALS MICROSOFT REPORTED PROFIT OF 60 CENTS A SHARE OR 1752 MILLION ON SALES OF 6819 MILLION IN THE YEAREARLIER PERIOD OPERATING SYSTEM SOFTWARE IS THE BEDROCK OF MICROSOFT'S BUSINESS BUT MORE THAN HALF OF ITS FOURTHQUARTER SALES WILL COME FROM SPREADSHEET WORDPROCESSING AND OTHER APPLICATIONS MR READERMAN SAID AMONG PURVEYORS OF COMPUTER GAMES ELECTRONIC ARTS LEADS THE PACK POWERED BY STRONG DEMAND FOR ITS SPORTS GAMES BETTY LYTER AN ANALYST AT MONTGOMERY SECURITIES EXPECTS ELECTRONIC ARTS TO REPORT NET INCOME OF 47 CENTS A SHARE OR 111 MILLION VS NET OF 36 CENTS A SHARE OR 82 MILLION IN THE YEARAGO PERIOD SHE ESTIMATES REVENUE AT 100 MILLION A 53 JUMP FROM 648 MILLION A YEAR EARLIER HIGHEND DATABASE COMPANIES ALSO ARE EXPECTED TO SHOW WELL INFORMIX SOFTWARE INC WHICH SUPPLIES UNIX DATABASE SOFTWARE IS BENEFITING FROM THE SHIFT AWAY FROM MAINFRAMES TO LESS EXPENSIVE WORKSTATIONS WHICH INCREASINGLY ARE AT THE HUB OF DOWNSIZED DATA NETWORKS MR READERMAN EXPECTS INFORMIX TO REPORT EARNINGS OF 63 CENTS A SHARE OR 21 MILLION ON REVENUE OF 90 MILLION RESULTS ARE BOOSTED BY A ONETIME GAIN OF 17 MILLION RESULTING FROM A GOVERNMENT CONTRACT BUT OVERALL RESULTS STILL COMPARE FAVORABLY WITH YEARAGO EARNINGS OF 27 CENTS OR 83 MILLION ON REVENUE OF 54 MILLION SUPPLIERS OF PC APPLICATIONS WHICH USUALLY SET THE PACE FOR THE SOFTWARE INDUSTRY GENERALLY ARE EXPECTED TO REPORT WEAK RESULTS MAINLY BECAUSE THEY HAVE FAILED TO TRANSFER THEIR STRONG MARKET POSITION IN DOS SOFTWARE TO THE NEWER WINDOWS STANDARD SYMATEC CORP ONCE A HIGHFLIER ON THE STRENGTH OF ITS UTILITY AND DATABASE SOFTWARE IS EXPECTED TO POST AN OPERATING LOSS OF FIVE CENTS ON DECLINING SALES OF 50 MILLION SAID PETER ROGERS AN ANALYST AT ROBERTSON STEPHENS & CO IN THE YEARAGO PERIOD SYMANTEC EARNED 26 CENTS A SHARE ON SALES OF 568 MILLION HOWEVER SYMANTEC MAY BE POISED FOR A SHARP REBOUND MR ROGERS SAID CITING AN ANTICIPATED ROUND OF NEW PRODUCTS TO BE RELEASED LATER THIS YEAR BUT MS LYTER REMAINS BEARISH ON SYMANTEC SAYING THE COMPANY MAY NEVER DUPLICATE IN THE WINDOWS ARENA THE SHARE IT HOLDS IN THE DOS MARKET BORLAND INTERNATIONAL INC IS ANOTHER STORIED COMPANY FACING A CLOUDY FORECAST MR ROGERS EXPECTS THE COMPANY TO POST A LOSS OF 118 A SHARE OR 32 MILLION ON REVENUE OF 120 MILLION COMPARED WITH NET OF 28 CENTS A SHARE OR 75 MILLION ON REVENUE OF 1146 MILLION IN THE YEARAGO PERIOD BORLAND'S BIG LOSS IS MAINLY DUE TO A RESTRUCTURING THAT LOPPED OFF 15 OF ITS WORK FORCE THE COMPANY WHICH IN THE SPACE OF A FEW YEARS TRANSFORMED ITSELF FROM A LITTLEKNOWN LANGUAGES COMPANY INTO A DOS SPREADSHEET AND DATABASE POWERHOUSE NOW IS STRUGGLING TO KEEP ITS MOMENTUM IN THE WINDOWS ARENA BORLAND HAS TO RELAUNCH ITS QUATTRO PRO SPREADSHEET AND REACTIVATE A MORIBUND DATABASE BUSINESS MR ROGERS SAID GIVEN THOSE TWIN CHALLENGES IT IS HARD TO PREDICT WHEN THIS COMPANY WILL BEGIN GROWING AGAIN LOTUS DEVELOPMENT CORP THE LONGTIME LEADER IN SPREADSHEETS ALSO IS EXPECTED TO POST WEAK RESULTS THOUGH PROFIT IS LIKELY TO BE HIGHER THAN A YEAR EARLIER MR READERMAN ESTIMATES LOTUS EARNED 35 CENTS A SHARE OR 158 MILLION ON SAGGING SALES OF 232 MILLION IN THE YEAR AGO PERIOD IT EARNED 13 CENTS A SHARE OR 58 MILLION ON SALES OF 2492 MILLION DESPITE ITS LACKLUSTER RESULTS SOME ANALYSTS BELIEVE LOTUS IS POISED FOR A STRONG REBOUND ON THE STRENGTH OF FORTHCOMING NEW VERSIONS OF ITS NOTES WORKGROUP SOFTWARE 123 FOR WINDOWS AND IMPROV SPREADSHEET IT ISN'T CLEAR WHETHER LOTUS CAN GAIN ENOUGH OF A KICK FROM NOTES AND RELATED PRODUCTS TO REKINDLE GROWTH AND THAT MEANS SPREADSHEET SALES MUST STILL BE CLOSELY WATCHED THEY'VE DIVERSIFIED FROM A PRODUCT STANDPOINT BUT LOTUS IS STILL A SPREADSHEET STORY FROM REVENUE STANDPOINT MR READERMAN SAID 9301080164 930108 PIER 1 IMPORTS' SALES GAIN FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FIVEWEEK PERIOD ENDED SATURDAY INCREASED 14 TO 869 MILLION FROM 761 MILLION A YEAR EARLIER THE SPECIALTY FURNISHINGS AND LAWN AND GARDEN GOODS RETAILER SAID SALES AT STORES OPEN FOR MORE THAN ONE YEAR ROSE 98 9301080163 930108 NASD SEEKS TO SPUR TRADE IN EARLYHOUR SESSIONS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HOPING TO PUMP UP INTEREST IN ITS EARLYHOURS TRADING SESSION HAS PROPOSED SEVERAL CHANGES AIMED AT MAKING THE SYSTEM LESS EXPENSIVE FOR BROKERAGE FIRMS TRADING ON NASDAQ INTERNATIONAL HAS BEEN SPARSE SINCE THE SYSTEM WAS LAUNCHED A YEAR AGO AVERAGING ONLY ABOUT 30000 SHARES A DAY NASD OFFICIALS BELIEVE THE LOW VOLUME STEMS IN PART FROM SOME BROKERAGE FIRMS' RELUCTANCE TO STAFF THEIR NEW YORK TRADING DESKS DURING THE SESSION WHICH RUNS FROM 330 AM TO 9 AM EASTERN TIME THE NASD IS NOW PROPOSING TO EASE A REQUIREMENT THAT FORCES THEM TO PROVIDE QUOTES THROUGHOUT THE ENTIRE SESSION UNDER THE NASD PROPOSAL FIRMS THAT DON'T WANT TO STAY IN FOR SIXANDAHALF HOURS COULD JOIN THE SESSION AT 530 AM OR 730 AM EASTERN TIME MARKET MAKERS WOULD HAVE TO COMMIT TO ONE OF THE OPENINGS WHEN THEY REGISTER WITH NASDAQ INTERNATIONAL THE PROPOSED RULE CHANGE MUST BE APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION 9301080162 930108 WHO'S NEWS INTERVISUAL BOOKS INC INTERVISUAL BOOKS INC SANTA MONICA CALIF JOHN POWER 39 YEARS OLD A PARTNER OF POWER TWERSKY & ASSOCIATES WAS ELECTED A DIRECTOR OF THIS PRODUCER OF CHILDREN'S POPUP AND NOVELTY BOOKS HE SUCCEEDS ELGIN DAVIS 65 WHO LEFT FOR PERSONAL REASONS 9301080161 930108 WHO'S NEWS BIDERMANN INTERNATIONAL SA BIDERMANN INTERNATIONAL SA PARIS MICHEL ZELNIK 49 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT BIDERMANN INDUSTRIES USA INC A NEW YORKBASED UNIT OF THIS INTERNATIONAL APPAREL MANUFACTURER MR ZELNIK HAD BEEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BIDERMANN INDUSTRIES FROM 1979 TO 1986 SINCE THEN HE HAS BEEN A PRIVATE INVESTOR IN THE APPAREL INDUSTRY MR ZELNIK'S NEWLY CREATED POSITION IS FOR THE TRANSITION PERIOD UNTIL HE SUCCEEDS ALFRED P FUOCO 48 AS PRESIDENT AND CHIEF EXECUTIVE OF THE UNIT WHEN MR FUOCO RETIRES AT MIDYEAR 9301080160 930108 WHO'S NEWS PRIDE PETROLEUM SERVICES INC PRIDE PETROLEUM SERVICES INC HOUSTON WILLIAM S FRENCH WAS NAMED TO THE BOARD OF THIS WELL SERVICING CONTRACTOR MR FRENCH 52 YEARS OLD SUCCEEDS BRUCE P BICKNER WHO RESIGNED MR FRENCH IS CURRENTLY CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF GRANT TENSOR GEOPHYSICAL CORP OF HOUSTON 9301080159 930108 FINANCING BUSINESS PROXIMA CORP PROXIMA CORP SAN DIEGO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF TWO MILLION COMMON SHARES THE MAKER OF COMPUTERDRIVEN LIQUID CRYSTAL DISPLAY PROJECTION PRODUCTS SAID IT WILL SELL 12 MILLION SHARES AND THAT THE REMAINING 800000 SHARES WILL BE SOLD BY EXISTING SHAREHOLDERS THE COMPANY SAID IT EXPECTS A PERSHARE PRICE OF BETWEEN 11 AND 13 ABOUT 59 MILLION SHARES WILL BE OUTSTANDING AFTER THE OFFERING PROCEEDS WILL BE USED FOR WORKING CAPITAL FACILITIES EXPANSION AND OTHER GENERAL CORPORATE PURPOSES LEHMAN BROTHERS WILL MANAGE THE UNDERWRITING GROUP PROXIMA SAID 9301080158 930108 GANTOS DECEMBER SALES ROSE 4 GRAND RAPIDS MICH GANTOS INC SAID SALES FOR ITS STORES OPEN AT LEAST A YEAR ROSE 4 IN DECEMBER FROM A YEAR AGO TOTAL SALES FOR THE FIVEWEEK PERIOD ENDED JAN 2 ROSE 3 TO 413 MILLION THE COMPANY SAID FOR THE 48 WEEKS ENDED JAN 2 SALES FOR STORES OPEN AT LEAST A YEAR ROSE 5 FROM A YEAR AGO TOTAL SALES FOR THE PERIOD CLIMBED 4 TO 252 MILLION FROM A YEAR AGO 9301080157 930108 FINANCING BUSINESS GENESIS HEALTH VENTURES INC GENESIS HEALTH VENTURES INC SAID IT FILED A REGISTRATION STATEMENT FOR A PUBLIC OFFERING OF 29 MILLION COMMON SHARES IN THE OFFERING 15 MILLION WILL BE OFFERED BY THE COMPANY AND 14 MILLION BY SELLING SHAREHOLDERS THE KENNETT SQUARE PA COMPANY SAID IT ALSO APPLIED TO LIST ITS STOCK ON THE NEW YORK STOCK EXCHANGE AND THE LISTING IS EXPECTED TO TAKE PLACE PRIOR TO THE PRICING OF THE NEW OFFERING PROCEEDS WILL BE USED TO REPAY DEBT GENESIS HEALTH VENTURES PROVIDES A BROAD RANGE OF BASIC AND SPECIALTY CARE SERVICES FOR ELDERLY PATIENTS 9301080156 930108 WHO'S NEWS CINCINNATI MILACRON INC CINCINNATI MILACRON INC CINCINNATI CHRISTOPHER C COLE 37 YEARS OLD WAS NAMED VICE PRESIDENT FOR MACHINETOOL PRODUCTS AT THIS MACHINERY CONCERN MR COLE WHO HAD BEEN VICE PRESIDENT FOR STRATEGY AND NEW BUSINESS DEVELOPMENT SUCCEEDS KENNETH MUELLER 59 WHO HAD HELD THE JOB ON AN INTERIM BASIS AND IS NOW TREASURER 9301080155 930108 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 251987 METRIC TONS IN THE WEEK ENDED SATURDAY DOWN 09 FROM 254278 TONS IN THE PRECEDING WEEK BUT UP 23 FROM 205446 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID 9301080154 930108 DIGITAL FACILITY'S FLOOR COLLAPSES INJURING WORKERS HUDSON MASS A COLLAPSING FLOOR OF A PARTIALLY CONSTRUCTED DIGITAL EQUIPMENT CORP FACILITY HERE CAUSED INJURIES TO 16 WORKERS OF A CONCRETE SUBCONTRACTOR AS WORKERS WERE POURING CONCRETE EARLY YESTERDAY ONTO THE STEEL FRAME OF THE BUILDING'S SECOND FLOOR THE CASING GAVE WAY AND WORKERS DROPPED TO THE FLOOR BELOW A DIGITAL SPOKESPERSON SAID THE COMPUTER COMPANY BORE NO RESPONSIBILITY FOR THE ACCIDENT AND THAT WORKERS OF THE SUBCONTRACTOR S&F CONCRETE CONTRACTORS INC WERE TAKEN TO AREA HOSPITALS WITH MOSTLY MINOR INJURIES ONE SERIOUSLY INJURED WORKER WAS TAKEN TO A BOSTON HOSPITAL THE SITE WILL BE TEMPORARILY CLOSED TO INVESTIGATE THE CAUSE OF THE ACCIDENT BUT SIGNIFICANT CONSTRUCTION DELAYS ARE NOT EXPECTED A DIGITAL SPOKESWOMAN SAID THE BUILDING SLATED TO OPEN IN 1994 AS A 500000SQUAREFOOT RESEARCH CENTER IS ADJACENT TO A FACILITY WHERE DIGITAL IS NOW MAKING THE FIRST GENERATION OF ITS NEW ALPHA CHIPS DIGITAL SAID THE ALPHA CHIP OPERATION WON'T BE AFFECTED 9301080153 930108 ECONOMY JOBLESS BENEFIT CLAIMS FELL DURING CHRISTMAS WEEK WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL A SEASONALLY ADJUSTED 40000 IN THE WEEK ENDED DEC 26 TO 291000 FROM A REVISED 331000 THE PREVIOUS WEEK THE LABOR DEPARTMENT SAID THE DECLINE WAS DUE IN PART TO THE CHRISTMAS DAY HOLIDAY CLAIMS TYPICALLY DECLINE DURING HOLIDAY WEEKS BECAUSE THERE ARE FEWER DAYS IN WHICH EMPLOYMENT OFFICES ARE OPEN TO ACCEPT THEM THE LATEST LEVEL WAS THE LOWEST SINCE APRIL 22 1989 WHEN 291000 INITIAL CLAIMS ALSO WERE FILED THE DEPARTMENT SAID IN THE WEEK ENDED DEC 19 2750000 PEOPLE WERE RECEIVING STATE UNEMPLOYMENT BENEFITS DOWN FROM THE PREVIOUS WEEK'S REVISED 2770000 AT THAT LEVEL 26 OF THOSE COVERED BY UNEMPLOYMENT INSURANCE WERE RECEIVING BENEFITS UNCHANGED FROM THE WEEK BEFORE IN THE FOUR WEEKS ENDED DEC 26 INITIAL CLAIMS AVERAGED 332500 DOWN FROM 341000 IN THE FOUR WEEKS ENDED DEC 19 IT WAS THE LOWEST FOURWEEK AVERAGE SINCE SEPT 30 1989 WHEN IT WAS 328750 THE LABOR DEPARTMENT SAID 9301080152 930108 LEISURE & ARTS ON DISC THE BEST OF 1992 BY MARK SWED THIS MAY BE AN ERA OF UNCHECKED PROLIFERATION OF CLASSICAL MUSIC ON COMPACT DISC WE ARE ON THE RECKLESS WAY TO THE 100TH CD VERSION OF BEETHOVEN'S NINTH SYMPHONY AND VIVALDI'S FOUR SEASONS BUT REVELATION IS STILL POSSIBLE IN A NUMBER OF LAST YEAR'S BEST MULTIPLEDISC SETS THE LOCKENHAUS COLLECTION PHILIPS A NEW 10CD COMPILATION OF COMMITTED AND UNHACKNEYED LIVE CHAMBERMUSIC PERFORMANCES IS ONE SET THAT REALLY DOES DESERVE SOME 10 HOURS OF LISTENING THE LOCKENHAUS FESTIVAL BEGUN A DECADE AGO BY THE GREAT AND GREATLY ICONOCLASTIC VIOLINIST GIDON KREMER WAS A REACTION TO THE EUROPEAN SUMMER FESTIVALS LIKE THAT IN SALZBURG THAT HAVE BECOME CONCLAVES OF RECORD EXECUTIVES ARTISTS' MANAGERS AND WEALTHY SOCIALITES MR KREMER SELECTED LOCKENHAUS A SMALL VILLAGE IN AUSTRIA AS THE SITE OF A CHAMBERMUSIC FESTIVAL TO WHICH MUSICIANS WOULD COME SIMPLY TO MAKE MUSIC INFORMALLY FOR THEMSELVES AND AN ADVENTUROUS PUBLIC HE SUCCEEDED SO WELL THAT IRONICALLY FANCY AUDIENCES AND RECORD COMPANIES BEGAN FOLLOWING HIM AS THIS COLLECTION ON A PRESTIGIOUS LABEL ATTESTS STILL THE PERFORMANCES BY MR KREMER MARTHA ARGERICH ANDRAS SCHIFF MISCHA MAISKY THE HAGEN QUARTET AND ABOUT 50 GENERALLY INSPIRED OTHERS ARE INTENSE AND ANIMATED WITH EVERY PIECE COMING ALIVE THE LOCKENHAUS COLLECTION NOT ONLY INCLUDES STANDARD WORKS BY MOZART BEETHOVEN AND SCHUBERT BUT REDISCOVERS TWO UNDESERVEDLY NEGLECTED AND ACCESSIBLE COMPOSERS FROM THE EARLY 20TH CENTURY ARTHUR LOURIE AND ERWIN SCHULHOFF AS WELL AS OFFERS SOME OF THE MOST IMPASSIONED PERFORMANCES ON DISC OF WORKS BY THE TWO MOST IMPRESSIVE CONTEMPORARY RUSSIAN COMPOSERS ALFRED SCHNITTKE AND SOFIA GUBAIDULINA EVEN NICHOLAS HARNONCOURT THE IDIOSYNCRATIC CONDUCTOR WHO 25 YEARS AGO LED SOME OF THE FIRST MODERN PERFORMANCES OF BACH AND MONTEVERDI ON PERIOD INSTRUMENTS MAKES AN APPEARANCE HERE CONDUCTING A SOMBER BACH CANTATA WITH FRIGHTENING EFFICIENCY MR HARNONCOURT MAY SEEM TO BE HEDGING HIS BETS HOWEVER SINCE HE HAS LATELY JOINED THE BEETHOVENSYMPHONY SWEEPSTAKES AS ALL THE EARLY MUSIC BOYS ARE DOING THESE DAYS WITH A STARTLINGLY UNCONVENTIONAL SET ON TELDEC THE SURPRISING PART HOWEVER IS THAT THE SET HAS PROVEN TO BE ONE OF 1992'S MOST CELEBRATED AND BESTSELLING RELEASES REAWAKENING JADED EARS TO THE REPERTOIRE'S MOST OVERDONE WORKS MR HARNONCOURT SOMEHOW MANAGES TO MAKE THE SYMPHONIES SOUND BOTH MODERN AND ANCIENT BY GETTING ENTHUSIASTIC PLAYING FROM A WONDERFUL ENSEMBLE OF YOUNG ASYETUNJADED PLAYERS THE CHAMBER ORCHESTRA OF EUROPE AND BY EMPLOYING DARING PHRASING CHOICES THAT ARE ALL HIS OWN IT DOES NOT YET REQUIRE THE SAME DEGREE OF ORIGINALITY TO GIVE A FRESH SOUND TO HAYDN'S LESSERKNOWN SYMPHONIES BUT THEY ARE GETTING RECORDED MORE AND MORE AND IT PROBABLY WON'T BE LONG BEFORE THERE ARE MANY COMPETING VOLUMES OF ALL 104 OF THEM TOO IT WILL HOWEVER BE QUITE SOME TIME BEFORE ANYONE COMES ALONG TO CONDUCT THEM WITH THE SHEER PANACHE THE HUMOR AND DRAMA THAT LEONARD BERNSTEIN BROUGHT TO THEM IN HIS RECORDINGS OF THE SIX PARIS AND 12 LONDON SYMPHONIES MADE IN THE EARLY '60S WITH THE NEW YORK PHILHARMONIC THESE HAVE LONG BEEN UNAVAILABLE BUT NOW SONY CLASSICS HAS INCLUDED THEM IN THREE BUDGETPRICED TWODISC PACKAGES AS PART OF THE SOCALLED ROYAL EDITION OF BERNSTEIN RERELEASES WHICH IS PROGRESSING ALPHABETICALLY AND HAS JUST GOTTEN UP TO M A PEAK LETTER IN THE BERNSTEIN LEXICON WHERE IT MOST NOTABLY STANDS FOR MAHLER AND THE HISTORIC RECORDINGS THAT THE GREAT AMERICAN MADE OF THE GREAT VIENNESE COMPOSER'S WORK WITH THE NEW YORK PHILHARMONIC MR BERNSTEIN WAS INDEED A KING OF THE PODIUM BUT HIS SERIES IS CALLED ROYAL BECAUSE IT HAS INSIPID WATERCOLORS BY PRINCE CHARLES ON ITS COVERS THERE WILL BE 100 IN ALL MR BERNSTEIN WOULD HAVE SURELY HATED THIS IDIOTIC CONCEIT BUT THE SOUND HAS BEEN CAREFULLY REMASTERED MUCH IMPROVING THE SHRILL SONICS OF THE ORIGINAL LPS AND YOU DON'T OF COURSE HAVE TO LOOK AT THE WALES ART WHILE YOU LISTEN ANOTHER BIT OF OVERRECORDED REPERTOIRE IS THE TONE POEMS OF RICHARD STRAUSS THERE HAVE BEEN COUNTLESS RENDITIONS OF ALSO SPRACH ZARATHUSTRA IN THE COUPLE OF DECADES SINCE THE FILM 2001 MADE THE SCORE'S OPENING FAMOUS BUT I'M NOT SURE THAT IT OR THE OTHER STRAUSS FAVORITES HAVE EVER HAD BETTER RECORDINGS THAN THOSE MADE BY AMERICAN ORCHESTRAS A HALF A CENTURY AGO AND NOW COLLECTED ON A TWOCD SET BY BMG THE SOUND MAY BE PRETTY ANCIENT BUT THERE IS NO ZARATHUSTRA AS CHARISMATIC AS THAT FROM SERGE KOUSSEVITZKY AND THE BOSTON SYMPHONY ORCHESTRA NO HELDENLBEN AS EXALTING AS THAT FROM WILLEM MENGELBERG AND THE NEW YORK PHILHARMONIC NO A DEATH AND TRANSFIGURATION MORE THRILLING THAN THE ONE LEOPOLD STOKOWSKI RECORDED WITH THE PHILADELPHIA ORCHESTRA ALSO RECORDED TO DEATH ARE BACH'S BRANDENBURG CONCERTOS BUT A PERFECT ANTIDOTE TO THAT IS PAUL HINDEMITH'S NOTSOWELLKNOWN KAMMERMUSIK SEVEN NEOCLASSICAL CONCERTOS THAT TAKE THE BRANDENBURGS AS MODELS GORGEOUSLY PLAYED BY THE ROYAL CONCERTGEBOUW ORCHESTRA IT GETS ITS ROYAL DESIGNATION HONESTLY UNDER ITS MUSIC DIRECTOR RICCARDO CHAILLY AND LUMINOUSLY RECORDED BY LONDON ON TWO CDS THEY ARE COMPULSIVE LISTENING SPECIAL BOXED SETS ALSO COMMEMORATE THE PASSING OF TWO INFLUENTIAL 20THCENTURY COMPOSERS WHO WERE ALSO POWERFUL PERFORMERS SO NOW IT IS BOTH POSSIBLE AND CONVENIENT TO HEAR JOHN CAGE AND OLIVIER MESSIAEN INTERPRET THEIR OWN WORKS MR MESSIAEN RECORDED ALL HIS ORGAN MUSIC IN 1956 AND THE SOUND EVEN WHEN REISSUED FOR THIS FOURDISC ANGEL/EMI SET ISN'T VERY GOOD BUT THAT ONLY MAKES THE PLAYING SEEM EVEN MORE OTHERWORLDLY CURIOUSLY ACOUSTICS ARE ALSO SOME OF THE POINT OF MR CAGE'S DIARY HOW TO IMPROVE THE WORLD YOU WILL ONLY MAKE MATTERS WORSE WHICH TAKES UP A FULL EIGHT CDS BUT THE GERMAN LABEL WERGO IS SELLING THEM FOR THE PRICE OF THREE AND THESE ARE OFFTHECUFF CAGEAN OBSERVATIONS TRIVIAL AND PROFOUND TAKEN DOWN NIGHTLY FOR SEVERAL YEARS AS A KIND OF DISCIPLINE THAT AS THEY GO ON FOR HOUR AFTER HOUR WITH MR CAGE'S VOICE MOVING THROUGH SPACE IN CHANCEDETERMINED WAYS SEEM IN THEIR ZENLIKE WAY TO OCCUPY MUCH THE SAME SPIRITUAL SPACE AS MR MESSIAEN'S ORGAN PLAYING TOGETHER THESE COLLECTIONS OFFER A GOOD WAY TO CONTEMPLATE THE END OF AN ERA 9301080151 930108 ENTERPRISE ENTREPRENEUR SMELLS AROMA OF SUCCESS IN COFFEE BARS STARBUCKS STIRS PROFITABLE BREW BY SELLING VISION OF ROMANCE COMMUNITY BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL LIKE MANY A FIRSTTIME VISITOR TO ITALY BROOKLYNBORN HOWARD SCHULTZ WAS STRUCK BY A SUDDEN INSPIRATION AS HE AMBLED THROUGH THE ANCIENT PIAZZAS OF MILAN LATE ONE EVENING THAT WAS IN 1983 AND A REMARKABLE CORPORATE SAGA HAS BEEN BREWING EVER SINCE MR SCHULTZ IS NOW CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF STARBUCKS COFFEE CO A SEATTLEBASED CHAIN OF COFFEE BARS THAT HAS SUDDENLY BECOME ONE OF THE FASTEST GROWING COMPANIES IN THE COUNTRY THE REVELATION THAT HIT HIM AS HE STROLLED PAST THE CHEERY ESPRESSO BARS OF MILAN WAS THAT AMERICANS DRINK LOUSY COFFEE IN UNPLEASANT SURROUNDINGS AND THAT GIVEN THE CHANCE THEY WOULD PAY GOOD MONEY FOR A PREMIUM CUP OF JOE AND A COZY HIP SPOT TO SIP IT IN I SAW THAT WHAT ITALY HAD CAPTURED WAS THE ROMANCE OF THE BEVERAGE MR SCHULTZ SAYS THAT SAME ROMANCE HAS BEEN CAPTURED NOW IN THE SHOPPING EXPERIENCE AT ALL STARBUCKS STORES IT'S ROMANCE THEATRICS COMMUNITY THE TOTALITY OF THE COFFEE EXPERIENCE THAT MIGHT SEEM A LITTLE COSMIC FOR AN ITEM AS MUNDANE AS COFFEE BUT MR SCHULTZ WAS CERTAINLY ON TO SOMETHING AMERICANS HAVE INDEED FLOCKED TO STARBUCKS OUTLETS HAPPILY PAYING ANYWHERE FROM 65 CENTS TO 350 FOR A BLAST OF PREMIUM COFFEE CAPPUCCINO LATTE OR OTHER COFFEE DERIVATIVES THE COMPANY STARTED IN 1971 WITH ONE STORE SELLING PACKAGED PREMIUM COFFEE IN SEATTLE A PIONEER IN THAT SOGGY CITY'S WELLCHRONICLED LOVE AFFAIR WITH THE BEAN BUILDING ON MR SCHULTZ'S ITALY EPIPHANY STARBUCKS HAS GROWN TO 165 STORES THAT SERVE UP STEAMING COFFEE AS WELL AS THE PACKAGED STUFF THE STORES ARE CONCENTRATED ON THE WEST COAST BUT LATELY THE COMPANY HAS BEEN ACCELERATING AN EASTWARD PUSH EXPANDING ITS PRESENCE IN CHICAGO AND OPENING STORES IN DENVER WASHINGTON DC AND THE EAST COAST ARE NEXT BY THE END OF THIS FISCAL YEAR STARBUCKS EXPECTS TO HAVE 226 STORES IT PLANS TO ADD ANOTHER 90 STORES IN THE FOLLOWING FISCAL YEAR PROFITS ARE PERCOLATING FOR THE FISCAL YEAR ENDED SEPT 30 STARBUCKS' NET INCOME SURGED 71 TO 41 MILLION OR 33 CENTS A SHARE SALES JUMPED 61 TO 931 MILLION SINCE 1988 ANNUAL SALES HAVE RISEN NINEFOLD ANALYSTS EXPECT THE COMPANY TO EARN ABOUT 50 CENTS A SHARE THIS FISCAL YEAR ON SALES GROWTH OF ABOUT 60 THAT INDICATES SALES FOR FISCAL 1993 OF ABOUT 149 MILLION MR SCHULTZ SAYS HE IS COMFORTABLE WITH THOSE ESTIMATES INVESTORS' ENTHUSIASM FOR STARBUCKS IS CLOSE TO THE BOILING POINT THE COMPANY LAST SPRING FILED FOR A PUBLIC OFFERING WITH A PRICE PROJECTED AT 14 TO 16 A SHARE THE OFFERING COMMENCED IN JUNE AT 17 A SHARE REFLECTING STRONG APPETITE BY INVESTORS THE STOCK HAS BEEN SPIRALING SKYWARD SINCE REACHING A PEAK OF 3950 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING INVESTORS SENSE THAT STARBUCKS HAS PHENOMENAL GROWTH POTENTIAL GOOD MANAGEMENT AND A STRONG CONCEPT SAYS CHRISTOPHER E VROOM RETAIL ANALYST WITH ALEX BROWN & SONS MR VROOM PROJECTS THAT STARBUCKS' SALES COULD TOP 1 BILLION BY THE END OF THE DECADE STARBUCKS' HEADY GROWTH SEEMS ESPECIALLY IMPRESSIVE CONSIDERING THE STAGNANT OVERALL MARKET FOR COFFEE IN AMERICA US COFFEE CONSUMPTION HAS BEEN STUCK AT ABOUT 65 BILLION ANNUALLY FOR ALMOST A DECADE PERCAPITA GUZZLING HAS DROPPED TO ABOUT 18 CUPS A DAY FROM A PEAK OF 31 CUPS A DAY IN 1962 YET SALES OF HIGHERPRICED PREMIUM COFFEES HAVE BEEN SLOWLY BUILDING FOR SEVERAL YEARS EVEN AS OVERALL COFFEE CONSUMPTION FELL THAT TREND BENEFITS NOT ONLY STARBUCKS BUT THE GROWING SWARM OF OTHER PREMIUM COFFEE PRODUCERS AND LOCALLYBASED COFFEE BARS SUCH AS PEET'S COFFEE & TEA IN EMERYVILLE CALIF GLORIA JEAN'S COFFEE IN CHICAGO AND BARNEY'S COFFEES & TEAS IN ORLANDO FLA AMONG OTHERS MR SCHULTZ 39 YEARS OLD BELIEVES HE KNOWS THE REASON FOR THIS TREND MOST OF THE STANDARD COFFEE AVAILABLE IN AMERICA IS CANDIDLY VIRTUALLY UNDRINKABLE HE SAYS THEREIN LIES ONE BIG KEY TO STARBUCKS' SUCCESS IT SCOURS THE WORLD FOR PREMIUM ARABICA COFFEES WHOSE PUNGENT BEANS GROW ONLY AT HIGHER ALTITUDES DAVE OLSEN WHO DOES MOST OF THE SCOURING AS STARBUCKS' CHIEF COFFEE PROCURER SPENDS MUCH OF HIS TIME ON MOUNTAIN TRAILS IN PLACES LIKE INDONESIA KENYA GUATAMALA AND COSTA RICA HE HAS BEEN STUNG BY GUATAMALAN SCORPIONS STARTLED BY JAVANESE VOLCANOES AND ALARMED BY PAPUA NEW GUINEAN TRIBAL WARFARE BUT HE KEEPS STARBUCKS IN TOPGRADE ARABICAS THE BEANS ARE ROASTED AND VACUUMPACKED AT A PLANT IN SEATTLE A LOT OF OTHER COFFEES MAY HAVE SOME PRETTY GOOD ARABICAS BUT THEY THROW IN A LOT OF OTHER CRUDDY BEANS AS FILLER HE SAYS STARBUCKS CONSIDERS THIS UNSCRUPULOUS AND UNTHINKABLE MR OLSEN SAYS THE END RESULT OF ALL THIS SPECIAL CARE AS STARBUCKS' ANNUAL REPORT PUTS IT IS THE COFFEE'S FLAVOR EXPRESSION IS ANALOGOUS TO THAT OF A MATURE BOTTLE OF FINE RED WINE WITH FINELY ETCHED FLAVORS AND AROMA UP FRONT SUBTLY SUPPORTED BY THE CRISP ACIDITY WHICH ONLY HIGHALTITUDE CAN IMPART THE BREW ITSELF IS ONLY PART OF THE STORY THROUGH A SOMEWHAT FUZZY BUT APPARENTLY APPEALING AMALGAM OF DREAMY IDEALISM AND NUTSANDBOLTS MANAGEMENT PRINCIPLES MR SCHULTZ AND HIS EXECUTIVES HAVE CREATED A CORPORATE CULTURE THAT PAMPERS NOT ONLY CUSTOMERS BUT EMPLOYEES AS WELL WITHOUT SACRIFICING TOUGH FINANCIAL CONTROLS FOR STARTERS STARBUCKS STORES ARE PHYSICALLY ALLURING MOST ARE FAIRLY SPACIOUS WELLLIGHTED PLACES FEATURING LOTS OF BURNISHED WOOD GLEAMING ESPRESSO MACHINES ARTWORK AND OPERA MUSIC THIS COMBINATION APPEARS ALMOST IRRESISTABLE TO THE BLACKTURTLENECK CROWD AMONG OTHER GROUPS THE PLACE IS WOMBLIKE IN ITS SENSE OF WARMTH SECURITY AND HAPPINESS REMARKS JOSHUA ALLINGTON A MUSIC STORE EMPLOYEE AND SELFDESCRIBED STREET POET WHO IS READING BAUDELAIRE AND SIPPING ESPRESSO AT A STARBUCKS OUTLET IN SAN FRANCISCO'S TRENDY MARINA DISTRICT HE'S WEARING A BLACK TURTLENECK STARBUCKS SEEMS TO TRY TO KEEP EMPLOYEES ALMOST AS COMFORTABLE THE COMPANY IS BELIEVED TO BE THE ONLY SIZABLE RETAILER THAT OFFERS FULL BENEFITS TO PARTTIME WORKERS ANALYSTS SAY IT HAS QUARTERLY MEETINGS WITH MANAGEMENT AT WHICH EMPLOYEES ARE ENCOURAGED TO GRILL MR SCHULTZ AND OTHER EXECUTIVES IT IS ONE OF THE LARGEST CORPORATE CONTRIBUTORS TO THE CARE CHARITY AND HELPS FUND LITERACY AND HEALTH PROJECTS IN THE AREAS WHERE IT BUYS COFFEE THAT PROGRAM IS ESPECIALLY POPULAR WITH STARBUCKS EMPLOYEES MR SCHULTZ SAYS THEY KNOW WE'RE NOT SIMPLY TAKING FROM THESE AREAS WE ARE GIVING BACK AS WELL HE SAYS MR SCHULTZ SAYS SUCH MOVES STEM PARTLY FROM HIS CHILDHOOD MY FATHER STRUGGLED A GREAT DEAL AND NEVER MADE MORE THAN 20000 A YEAR AND HIS WORK WAS NEVER VALUED EMOTIONALLY OR PHYSICALLY BY HIS EMPLOYER HE SAYS THIS WAS AN INJUSTICE I WANT OUR EMPLOYEES TO KNOW WE VALUE THEM THERE IS ALSO A HUGE PRACTICAL BENEFIT ANALYSTS SAY STARBUCKS' TURNOVER IS EXTRAORDINARILY LOW BY RETAILER STANDARDS AND MR SCHULTZ SAYS MORALE IS HIGH WE BELIEVE WE HAVE AN ESPRIT DE CORPS AMONG OUR EMPLOYEES THAT MANIFESTS ITSELF IN A PASSIONATE DEVOTION TO PROVIDING GOOD SERVICE TO THE CUSTOMER MR SCHULTZ SAYS WE THINK WE'VE ESTABLISHED A COMMON PHILOSOPHICAL THREAD WITH OUR EMPLOYEES THAT EXTENDS ON THROUGH THEM TO OUR CUSTOMERS SOME PEOPLE OF COURSE WONDER WHETHER THIS IS A BUNCH OF NEW AGE MUMBO JUMBO AND FRET THAT THE PREMIUM COFFEE CRAZE WILL FIZZLE ALONG WITH STARBUCKS' FORTUNES THERE ARE SOME CYNICS OUT THERE MR SCHULTZ ACKNOWLEDGES BUT WE BELIEVE IN THIS CONCEPT WE'RE FANATICAL ABOUT QUALITY TOTALLY COMMITTED TO OUR EMPLOYEES AND PASSIONATE ABOUT OUR CUSTOMERS HE ADDS I THINK WE ARE REINVENTING THE PROTOTYPICAL CORPORATION 9301080150 930108 WHAT'S NEWS WORLDWIDE IRAQ GAVE A VAGUE REPLY TO A WESTERN ULTIMATUM AND MOVED SOME MISSILES BAGHDAD DECLARED THAT IT WOULD RESERVE THE RIGHT TO MOVE ITS PLANES AND MISSILES ANYWHERE IN ITS TERRITORY WITHOUT SPECIFICALLY REFUSING TO MOVE THE MISSILES OUT OF A SOUTHERN NOFLY ZONE BY TODAY'S DEADLINE IRAQ'S UN AMBASSADOR DELIVERED THE REPLY TO REPRESENTATIVES OF THE US FRANCE BRITAIN AND RUSSIA WHO HAD GIVEN HIM A 48HOUR ULTIMATUM WEDNESDAY MEANWHILE THE PENTAGON SAID IRAQ HAS BEEN MOVING ANTIAIRCRAFT MISSILES IN THE SOUTHERN ZONE BUT IT WAS UNCLEAR WHETHER THEY ARE BEING REMOVED OR MERELY SHIFTED TO MAKE THEM HARDER TO FIND BAGHDAD'S ENVOY INVITED A US CONGRESSIONAL DELEGATION TO VISIT IRAQ TO LOOK INTO THE DISPUTE THAT PROPOSAL IS LIKELY TO BE VIEWED AS A PROPAGANDA PLOY THE EPA WILL APPROVE A WAIVER ALLOWING CALIFORNIA TO IMPOSE AIR QUALITY STANDARDS EXCEEDING THOSE OF THE FEDERAL GOVERNMENT DEPARTING EPA CHIEF REILLY SAID THE WAIVER WHICH WAS INITIALLY EXPECTED TO BE ROUTINE HAD BEEN OPPOSED BY AUTO COMPANIES AND WAS DELAYED BY THE WHITE HOUSE A UN OFFICIAL IN SARAJEVO SAID RELIEF EFFORTS WERE FAILING IN BOSNIA AND RADICAL ACTION WAS NEEDED TO SAVE HUNDREDS OF THOUSANDS OF CIVILIANS FROM DYING MEANWHILE EUROPEAN COMMISSION OFFICIALS REPORTEDLY CONCLUDED THAT 20000 BOSNIAN WOMEN HAVE BEEN RAPED BY SERBS AS PART OF A DELIBERATE PLAN TO DISPLACE MUSLIMS US MARINES IN SOMALIA ATTACKED AND SEIZED TWO CLAN CAMPS THAT WERE HELD BY MOGADISHU GUNMEN LOYAL TO GEN AIDID ONE OF SOMALIA'S TWO MOST POWERFUL WARLORDS AT TALKS IN ETHIOPIA MEANWHILE AIDID REVERSED HIS PRIOR POSITION AND AGREED TO TAKE PART IN AN APRIL NATIONAL RECONCILIATION CONFERENCE ACCORDING TO DIPLOMATS HEAVY SEAS STYMIED CLEANUP EFFORTS OFF THE SHETLAND ISLANDS AS OIL POURED FROM A TANKER THAT RAN AGROUND TUESDAY BRITISH OFFICIALS SAID IT MIGHT BE A WEEK BEFORE WEATHER CONDITIONS ALLOW OIL RECOVERY TO BEGIN CONCERN MOUNTED THAT THE SHIP MIGHT STILL BREAK UP AND SPILL ALL OF ITS 25MILLIONGALLON CARGO ASPIN SIDESTEPPED LAWMAKERS' QUESTIONS ABOUT WHEN THE US SHOULD USE MILITARY FORCE DURING A SENATE CONFIRMATION HEARING CLINTON'S DEFENSE SECRETARYDESIGNATE EVEN DECLINED TO ENDORSE SOME POSITIONS HE HAS TAKEN OVER THE PAST SEVEN YEARS AS HEAD OF THE HOUSE ARMED SERVICES COMMITTEE A FEDERAL JUDGE ENJOINED PRESIDENT BUSH FROM FIRING FIVE OF THE POSTAL SERVICE'S NINE GOVERNORS AS HE HAD THREATENED ESCALATING A DISPUTE CONCERNING THE AGENCY'S INDEPENDENCE AND ITS AUTHORITY TO SET STAMP PRICES JUSTICE DEPARTMENT OFFICIALS QUICKLY MOVED IN FEDERAL APPEALS COURT TO SEEK A REVERSAL OF THE JUDGE'S ORDER ISRAEL AGREED TO LET RED CROSS OFFICIALS VISIT 415 PALESTINIANS EXPELLED TO SOUTH LEBANON THREE WEEKS AGO PRIME MINISTER RABIN'S DECISION WAS ANNOUNCED HOURS BEFORE A SECOND UN ENVOY ARRIVED TO INSIST ISRAEL TAKE BACK THE DEPORTEES LEBANON HAS REFUSED TO ACCEPT THE PALESTINIANS WHO ARE TRAPPED IN A MAKESHIFT CAMP PRESIDENT BUSH URGED CONGRESS TO DESIGNATE MORE THAN A HALFMILLION ACRES IN REMOTE PARTS OF COLORADO AND MONTANA AS WILDERNESS AND TO MAKE KENTUCKY'S RED RIVER PART OF THE NATIONAL WILD AND SCENIC RIVERS SYSTEM HE ALSO URGED THAT THE GREENBRIER RIVER IN WEST VIRGINIA BE ADDED TO THAT SYSTEM BUT UNDER STATE JURISDICTION THE AGRICULTURE DEPARTMENT RELEASED A PRELIMINARY PLAN FOR CLOSING ABOUT 1000 FIELD OFFICE SITES TO CUT COSTS AN OFFICIAL SAID IT COULD BE THREE YEARS BEFORE THE PLAN IS FULLY IN EFFECT THE DEPARTMENT'S 7405 COUNTY OFFICES PROVIDE INFORMATION ABOUT FARM SUBSIDIES LOANS AND CONSERVATION PROGRAMS FRANCE CONFIRMED THE SALE OF 60 ADVANCED FIGHTER JETS TO TAIWAN A MOVE EXPECTED TO PUT PRESSURE ON THE NETHERLANDS AND GERMANY TO LIFT THEIR BAN ON ARMS SHIPMENTS TO THAT NATION REPORTS OF THE 26 BILLION SALE PROMPTED CHINA TO ORDER A FRENCH CONSULATE CLOSED AND TO BAR FRENCH COMPANIES FROM BIDDING ON A SUBWAY CONTRACT TAJIKISTAN DECREED A STATE OF EMERGENCY AND CURFEW IN THE CAPITAL OF DUSHANBE TO CLAMP DOWN ON VIOLENCE THE DECREE BANS PUBLIC GATHERINGS AND AUTHORIZES SECURITY FORCES TO SEARCH VEHICLES AND INDIVIDUALS 9301080149 930108 GAMBLING SURVEY REVEALS A RECENT JUMP IN CASINO GOERS BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL ODDS ARE THERE IS A CASINO IN YOUR FUTURE A NEW SURVEY OF THE MARKET SHOWS THAT HALF OF ALL ADULTS HAVE HIT THE CASINO FLOOR AT SOME TIME IN THEIR LIVES A SHARP INCREASE FROM 32 IN 1989 MORE SPECIFICALLY 215 SAY THEY GAMBLED IN A CASINO IN THE PAST YEAR THANKS IN PART TO THE PROLIFERATION OF RIVERBOATS INDIANRUN CASINOS AND OTHER SITES THE COMPREHENSIVE SURVEY IS AMONG THE FIRST EFFORTS TO EXAMINE GAMBLERS' ATTITUDES TOWARD GAMBLING AND WHY THEY PLAY AS WELL AS TO GLEAN DEMOGRAPHIC INFORMATION IT IS BASED ON DATA COLLECTED FOR HARRAH'S CASINO HOTELS A UNIT OF PROMUS COS OF MEMPHIS TENN BY THE HOME TESTING INSTITUTE YANKELOVICH CLANCY SHULMAN AND COMMUNICATION DEVELOPMENT CO THE COMPANIES POLLED SAMPLES FROM THE GENERAL PUBLIC AS WELL AS CASINO GAMBLERS BY ANY MEASURE THE CUSTOMER BASE IS GROWING THE DATA FOR 1991 A RECESSION YEAR TRANSLATE INTO 226 MILLION HOUSEHOLDS WITH ONE OR MORE GAMBLERS AND 645 MILLION TRIPS TO CASINOS ANNUALLY THAT INCLUDES 44 MILLION NEW HOUSEHOLDS AND REPRESENTS A 20 GROWTH IN TRIPS TO CASINOS OVER THE PRIOR YEAR THE SURVEY SAYS PROMUS EXECUTIVES SAY THE STUDY DOCUMENTS BROAD ACCEPTANCE OF GAMBLING IT'S OUR BELIEF THAT LEGALIZED CASINO GAMBLING COULD BECOME AN ACTIVITY ACCEPTABLE TO THE VAST MAJORITY OF PEOPLE IN THE US WITHIN A REASONABLE DISTANCE OF THEIR HOMES SAYS PHILIP G SATRE PROMUS'S PRESIDENT THE TYPICAL AMERICAN VISITING A CASINO DESTINATION HAS HOUSEHOLD INCOME OF MORE THAN 35000 A YEAR IS BETWEEN THE AGES OF 40 AND 64 AND LIVES IN A ONE OR TWOMEMBER HOUSEHOLD THE HARRAH'S SURVEY SAYS AND THE CUSTOMER IS JUST AS LIKELY TO BE A WOMAN AS A MAN SAYS BALA SUBRAMANIAN PROMUS'S DIRECTOR OF MARKET RESEARCH THAT MAKES GAMBLERS SOMEWHAT WEALTHIER THAN THE AVERAGE AMERICAN WHOSE MEDIAN HOUSEHOLD INCOME IS ABOUT 27900 THEY ARE SLIGHTLY BETTER EDUCATED WITH 181 OF GAMBLING HOUSEHOLDS CONTAINING COLLEGE GRADUATES COMPARED WITH 162 OF THE GENERAL HOUSEHOLD POPULATION IN FACT THE PROFILE OF THE GAMBLER IS ROUGHLY SIMILAR TO THAT OF THE AMERICAN TRAVELER WHICH CASINOINDUSTRY EXPERTS SAY ISN'T SURPRISING BUT THAT MAY CHANGE AS CASINOS SPREAD INCREASING AMERICANS' ACCESS TO GAMBLING AND CUTTING DOWN ON THE EXPENSE OF TRAVELING TO CASINO SITES AS GAMBLING BECOMES MORE AVAILABLE LOCALLY THE PROFILE OF GAMBLER WOULD PROBABLY BE LESS LIKE THE TRAVELING PUBLIC AND MORE LIKE THE GENERAL POPULATION MR SUBRAMANIAN SAYS LOGICALLY MOST CASINO GAMBLERS NOW LIVE IN THE NORTHEAST OR THE WEST WHERE MOST OF THE CASINOS ARE CALIFORNIA NEW YORK NEW JERSEY PENNSYLVANIA AND ARIZONA ACCOUNTED FOR 46 OF ALL CASINO GAMBLERS AND 56 OF ALL CASINO TRIPS IN 1991 THE SURVEY SAYS ALSO CHICAGO AND THE MINNEAPOLIS ST PAUL AREA ARE DEVELOPING AS IMPORTANT FEEDER MARKETS AS RIVERBOAT AND INDIAN CASINOS SPREAD TO THOSE REGIONS THE STUDY ALSO EXAMINES WHAT PEOPLE PLAY AND WHY SLOT MACHINES OR VIDEO GAMBLING MACHINES ARE MOST POPULAR WITH 68 OF GAMBLERS WITH 25CENT AND 50CENT MACHINES THEIR OVERWHELMING FAVORITES OF THOSE WHO GAMBLE AT THE TABLES MOST MAKE WAGERS OF LESS THAN 10 BUT THERE ARE DIFFERENCES BETWEEN SLOT PLAYERS AND TABLE PLAYERS THE DATA SHOW SLOT PLAYERS TEND TO BE OLDER AND LESS LIKELY TO HAVE ATTENDED COLLEGE AND TO HAVE LOWER HOUSEHOLD INCOMES THAN TABLE PLAYERS THERE ARE ALSO DIFFERENCES IN MARKETS LAKE TAHOE NEV CRUISESHIP CASINOS AND FOREIGN CASINOS ATTRACT WEALTHIER YOUNGER PLAYERS THAN ATLANTIC CITY NJ RIVERBOATS AND INDIANRUN CASINOS NOT SURPRISINGLY MOST GAMBLERS SAY THEY PLAY BOTH FOR THE SHOT AT WINNING AND FOR THE ENTERTAINMENT WHICH INCLUDES SUCH ACTIVITIES AS DINING SEEING SHOWS AND SOCIALIZING THE CASINO INDUSTRY IS HIGHLY SENSITIVE TO BEING DEPICTED AS RELIANT ON LOWINCOME CUSTOMERS WHO GAMBLE TO WIN LARGE SUMS OF MONEY RATHER THAN ON MIDDLEINCOME FOLKS WHO PLAY AS A FORM OF ENTERTAINMENT ONE OF THE AIMS OF THE SURVEY WAS TO DEBUNK THAT PERCEPTION MR SATRE SAYS ALTHOUGH 35 OF THOSE IN THE SURVEY SAY GAMBLING IS ACCEPTABLE FOR OTHERS BUT NOT FOR ME AND 10 FEEL GAMBLING IS NOT ACCEPTABLE FOR ANYONE AMERICANS ARE CLEARLY MORE TOLERANT OF GAMBLING THAN A GENERATION AGO WHEN THE PASTIME WAS WIDELY CONSIDERED UNSAVORY IF NOT DOWNRIGHT SINFUL THESE DAYS 55 OF THE POPULATION SAY THEY FEEL GAMBLING IS PERFECTLY ACCEPTABLE FOR ANYONE THE MORAL ISSUES AREN'T MUCH OF A HURDLE ANY MORE SAYS DENNIS FORST AN ANALYST WITH SUTRO & CO THE STATES THAT DON'T WANT TO LEGALIZE CASINOS CITE CRIME ADDICTION AND OTHER ISSUES WILLIAM EADINGTON EXECUTIVE DIRECTOR OF THE UNIVERSITY OF NEVADARENO'S GAMBLINGRESEARCH INSTITUTE THINKS THE SPREADING AVAILABILITY OF SLOT MACHINES AND VIDEO GAMES MAY EVENTUALLY END UP SPLITTING THE MARKET INTO HIGHER AND LOWERTIER CUSTOMERS THOSE WITH MORE MEANS MAY END UP TRAVELING TO MARKETS LIKE LAS VEGAS WHILE THOSE WITH LESS WILL FEED QUARTERS INTO THE CORNERSTORE SLOT MACHINE INDUSTRY OFFICIALS GENERALLY ARGUE THAT THE SPREAD OF LOWLEVEL GAMBLING WILL CREATE NEW CUSTOMERS WHO EVENTUALLY WILL TRAVEL TO MAJOR CASINO MARKETS I NELSON ROSE WHO STUDIES GAMBLING ISSUES AS A LAW PROFESSOR AT WHITTIER COLLEGE'S LAW SCHOOL IN LOS ANGELES BELIEVES THAT THE SPREAD OF GAMBLING WILL EVENTUALLY BE AFFECTED BY SOME TYPE OF SCANDAL THAT WILL SPARK A SOCIAL OR POLITICAL PUSH TO REFORM OR RESTRICT IT EVEN SO HE SAYS THE HARRAH'S DATA SHOW WE'RE YEARS AWAY FROM THAT BACKLASH INDEED MR SATRE SAYS ONE OF THE MOST IMPORTANT FINDINGS IN THE SURVEY IS THAT MANY PEOPLE WHO FIND GAMBLING ACCEPTABLE HAVE NEVER ACTUALLY GAMBLED MR SATRE SAYS THOSE PEOPLE WOULD PLAY GIVEN THE CHANCE HE ADDS THAT'S WHY WE BELIEVE THERE ARE SUCH BIG OPPORTUNITIES FOR INVESTMENT 9301080148 930108 WHO'S NEWS WILLIAMS COS WILLIAMS COS TULSA OKLA LINDA K LAWSON AND JIM L GIPSON JR WERE NAMED VICE PRESIDENTS INVESTOR RELATIONS AND CORPORATE COMMUNICATIONS RESPECTIVELY OF THIS PIPELINE AND DIGITAL COMMUNICATIONS COMPANY MS LAWSON 47 YEARS OLD AND MR GIPSON 39 SUCCEED LAWRENCE R FRANCISCO 61 WHO WILL RETIRE AS VICE PRESIDENT INVESTOR AND PUBLIC RELATIONS MS LAWSON WAS CONTROLLER FOR A UNIT OF THE COMPANY AND MR GIPSON WAS DIRECTOR OF MEDIA RELATIONS 9301080147 930108 WHO'S NEWS AIRCURE ENVIRONMENTAL INC AIRCURE ENVIRONMENTAL INC MINNEAPOLIS LAWRANCE W MCAFEE WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR THIS COMPANY WHICH MAKES AND MARKETS AIR POLLUTION CONTROL SYSTEMS MR MCAFEE WAS MOST RECENTLY CHIEF FINANCIAL OFFICER FOR WASTE PROCESSOR INDUSTRIES INC 9301080146 930108 AMERICAN LIFE EXPECTANCY INCREASES TO 754 YEARS WASHINGTON THE LIFE EXPECTANCY OF AMERICANS ROSE TO A RECORD HIGH IN 1990 AND THE COUNTRY'S RATE OF INFANT MORTALITY FELL TO A RECORD LOW THE DEPARTMENT OF HEALTH AND HUMAN SERVICES REPORTED NEVERTHELESS BOTH MEASURES OF THE NATION'S WELLBEING REMAIN WORSE THAN THOSE OF SEVERAL OTHER INDUSTRIALIZED COUNTRIES LIFE EXPECTANCY FOR AMERICANS CLIMBED TO 754 YEARS IN 1990 FROM 751 YEARS IN 1989 THE DEPARTMENT SAID IN A REPORT LIFE EXPECTANCY FOR FEMALES WAS 788 YEARS FOR MALES 718 YEARS THE RATE OF INFANT MORTALITY DROPPED TO 92 DEATHS PER 1000 LIVE BIRTHS IN 1990 FROM 98 DEATHS IN 1989 A DECREASE OF 6 THE MORTALITY RATE DROPPED FOR BOTH WHITE AND BLACK INFANTS DESPITE IMPROVEMENT THE NUMBERS UNDERSCORE CONTINUING VAST DISPARITIES IN THE HEALTH OF WHITE AND BLACK AMERICANS THE MORTALITY RATE FOR BLACK INFANTS WAS 186 NEARLY 2 1/2 TIMES HIGHER THAN THE RATE FOR WHITE INFANTS WHICH WAS 76 AND THE LIFE EXPECTANCY FOR BLACK MALES WHILE IMPROVING FOR THE FIRST TIME SINCE 1984 WAS AT 645 YEARS FAR BELOW THAT OF WHITE MALES WHICH WAS 727 LIFE EXPECTANCY FOR BLACK FEMALES WAS 736 IN 1990 COMPARED WITH 794 FOR WHITE FEMALES THE REPORT ALSO FOUND THAT IN LESS THAN A DECADE SINCE ACQUIRED IMMUNE DEFICIENCY SYNDROME WAS DISCOVERED THE DISEASE HAS BECOME THE 10THLEADING CAUSE OF DEATH IN THE US EARLY DATA FOR 1991 SHOW IT CLIMBING TO THE NINTHLEADING CAUSE THE REPORT SAID 9301080145 930108 WHO'S NEWS ROSS SYSTEMS INC ROSS SYSTEMS INC REDWOOD CITY CALIF RICHARD LEFEBVRE CHAIRMAN AND CHIEF EXECUTIVE OF RAXCO WAS NAMED A DIRECTOR OF THIS SOFTWARE COMPANY EXPANDING BOARD MEMBERSHIP TO SIX 9301080144 930108 WHO'S NEWS AUTOMATIC DATA PROCESSING INC AUTOMATIC DATA PROCESSING INC ROSELAND NJ ANN DIBBLE JORDAN 58 YEARS OLD WAS NAMED A DIRECTOR AT THIS 2 BILLION COMPUTING SERVICES COMPANY INCREASING THE BOARD TO 12 MEMBERS MS JORDAN IS THE RETIRED DIRECTOR OF SOCIAL SERVICES AT THE UNIVERSITY OF CHICAGO MEDICAL CENTER IN ADDITION TO BEING A DIRECTOR OF SEVERAL CULTURAL EDUCATIONAL AND SOCIAL SERVICE ORGANIZATIONS SHE SERVES ON THE BOARDS OF SEVERAL OTHER COMPANIES INCLUDING JOHNSON & JOHNSON CAPITAL CITIES/ABC INC PRIMERICA INC NATIONAL HEALTH LABORATORIES INC AND HECHINGER CO 9301080143 930108 INTERNATIONAL FRANCE CONFIRMS SALE OF FIGHTER JETS TO TAIWAN PARIS THE FRENCH GOVERNMENT OFFICIALLY CONFIRMED THE SALE OF 60 ADVANCED FIGHTER JETS TO TAIWAN A MOVE LIKELY TO PUT PRESSURE ON THE NETHERLANDS AND GERMANY TO LIFT THEIR BAN ON ARMS SHIPMENTS TO THE ISLAND PARIS PREVIOUSLY REFUSED TO CONFIRM THE 26 BILLION DEAL FIRST REPORTED IN SEPTEMBER BEIJING REACTING TO THOSE REPORTS HAS ALREADY RETALIATED ORDERING FRANCE TO CLOSE A CONSULATE IN CANTON AND BANNING FRENCH COMPANIES FROM BIDDING FOR A SUBWAY CONTRACT THERE BUT THE RETALIATORY MOVES ARE CONSIDERED LARGELY SYMBOLIC AND WEREN'T ENOUGH TO DETER THE FRENCH A FOREIGN MINISTRY SPOKESMAN SAID HIS GOVERNMENT HAD INFORMED CHINA OF THE SALE THE MIRAGE 20005 JETS ARE MADE BY DASSAULT AVIATION SA THE FRENCH SALE FOLLOWS A US DECISION IN SEPTEMBER TO SELL 150 F16 FIGHTERS TO TAIWAN IT'S UNCLEAR WHETHER CHINA WHICH HAS BEEN WOOING WESTERN INVESTMENT NOW WILL TAKE TOUGHER RETALIATORY MEASURES AGAINST FRANCE BEIJING'S REACTION WILL BE CLOSELY WATCHED BY THE DUTCH AND GERMAN DEFENSE INDUSTRIES WHICH HAVE BEEN VYING TO SELL AS MANY AS 10 SOPHISTICATED SUBMARINES TO TAIWAN A DEAL POTENTIALLY VALUED AT ABOUT 4 BILLION 9301080142 930108 WHO'S NEWS CENTURA BANKS INC CENTURA BANKS INC ROCKY MOUNT NC J RICHARD FUTRELL JR RETIRED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS BANKING COMPANY TO BECOME BUDGET DIRECTOR FOR NORTH CAROLINA AND AN ADVISER TO GOV JAMES B HUNT MR FUTRELL 61 YEARS OLD WILL BE SUCCEEDED EFFECTIVE JAN 20 BY BOB MAULDIN 57 CENTURA'S PRESIDENT MR MAULDIN WILL RETAIN THE TITLE OF PRESIDENT 9301080141 930108 WHO'S NEWS COMPAGNIE DE SUEZ COMPAGNIE DE SUEZ PARIS MURRAY T KENNEY JOHN G POPP AND JOHN L SABRE WERE NAMED MANAGING DIRECTORS AT INDOSUEZ CAPITAL THE US INVESTMENT AND MERCHANT BANKING ARM OF BANQUE INDOSUEZ THE 70 BILLION ASSET UNIT OF THIS INTERNATIONAL BANK HOLDING COMPANY MR KENNEY 36 YEARS OLD WAS DIRECTOR OF PRIVATE PLACEMENTS IN MEDIA AND RETAILING MR POPP 36 WAS DIRECTOR OF LEVERAGED FINANCE IN THE CONSUMER PRODUCTS AREA MR SABRE 35 WAS DIRECTOR OF CORPORATE RESTRUCTURING THE UNIT'S NEW SOLE MANAGING DIRECTORS REPORT TO EXECUTIVE MANAGING DIRECTOR LES LIEBERMAN 9301080140 930108 GM'S SATURN EXPECTS A BREAKEVEN '93 HONDA PLANS TO BUILD MINIVANS IN US BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S SATURN SUBSIDIARY PLANS TO BREAK EVEN ON OPERATIONS IN 1993 AND BECOME PROFITABLE IN THE FOLLOWING YEARS THE PRESIDENT OF THE SMALLCAR OPERATION SAID YESTERDAY SEPARATELY A SENIOR HONDA MOTOR CO EXECUTIVE SAID THE JAPANESE AUTO MAKER WILL LIKELY EXPAND ITS US PRODUCTION CAPACITY TO BUILD A MINIVAN WITHIN THE NEXT COUPLE OF YEARS SATURN GM'S 35 BILLION EFFORT TO COUNTER THE SUCCESS OF HONDA AND OTHER JAPANESE AUTO MAKERS HAS SCORED A HIT WITH CONSUMERS BECAUSE OF ITS REASONABLE PRICES ATTENTIVE SERVICE AND LOWPRESSURE SALES STRATEGY BUT SATURN CONTRIBUTED HEAVILY TO GM'S NORTH AMERICAN LOSSES AS IT WORKED THROUGH A SLOWERTHANEXPECTED PRODUCTION LAUNCH DURING THE PAST TWO YEARS THIS YEAR HOWEVER IS OUR BREAKEVEN YEAR WE'LL EARN AS MUCH AS WE SPEND SATURN PRESIDENT RICHARD G LEFAUVE SAID AT A NEWS CONFERENCE AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW MR LEFAUVE'S STATEMENTS APPEARED TO BE IN LINE WITH GM PRESIDENT JOHN F SMITH JR'S VOW THAT GM'S NORTH AMERICAN OPERATIONS WILL BREAK EVEN OVERALL BEFORE INTEREST AND TAXES HOWEVER FURMAN SELZ INC ANALYST MARYANN KELLER SAID IT WASN'T CLEAR WHETHER SATURN WOULD BREAK EVEN AFTER ITS CONTRIBUTION TO CORPORATE OVERHEAD AND OTHER EXPENSES ARE FACTORED IN LIKEWISE SHE SAID INTEREST AND TAXES COULD TURN A BREAKEVEN OPERATING PERFORMANCE BY GM'S NORTH AMERICAN UNITS INTO A LOSS OF AS MUCH AS 900 MILLION GM'S DOMESTIC OPERATIONS ARE ESTIMATED TO HAVE HAD LOSSES OF MORE THAN 3 BILLION DURING 1992 TO REDUCE COSTS SATURN HAS CUT STAFF BY AS MUCH AS 38 IN AREAS SUCH AS ENGINEERING COMPANY OFFICIALS SAID SATURN ALSO RAISED BASE PRICES ON ITS CARS BY AS MUCH AS 95 LAST FALL PARTLY FOR THE COST OF AIRBAGS EVEN MORE IMPORTANT SATURN THIS SPRING PLANS TO ADD A THIRD WORK CREW AT ITS BIG SPRING HILL TENN COMPLEX THAT WILL ALLOW SATURN TO BUILD ABOUT 300000 OF ITS PLASTICBODY SMALL CARS THIS YEAR UP FROM ABOUT 200000 LAST YEAR MR LEFAUVE SAID WE WOULD HAVE TO EXPAND CAPACITY IN THE US TO BUILD A MINIVAN SAID KOICHI AMEMIYA PRESIDENT OF HONDA'S US SALES OPERATIONS THE MINIVAN HE ADDED WILL HIT THE MARKET IN A COUPLE OF YEARS HONDA DEALERS HAD HOPED A MINIVAN WOULD COME SOONER THEY HAVE WATCHED BABY BOOMER CUSTOMERS DEFECT FROM HONDA'S CARS AS THEIR FAMILIES GREW MR AMEMIYA SAID HONDA TRIED TO KEEP ITS ACCORD MODEL NO 1 IN SALES AMONG US CARS BUT COULDN'T MATCH FORD MOTOR CO'S COSTLY DECEMBER SALES BLITZ THAT LANDED ITS TAURUS ON TOP HONDA'S US OPERATIONS ARE EXPECTED TO BE FINANCIALLY SELFSUFFICIENT HE SAID WE HAVE ALWAYS MADE MONEY HE ADDED 9301080139 930108 FIAT SPA IS SAID TO HAVE MADE MODEST' '92 PROFIT SPECIAL TO THE WALL STREET JOURNAL MILAN FIAT SPA ITALY'S LARGEST INDUSTRIAL GROUP ENDED 1992 WITH A MODEST CONSOLIDATED OPERATING PROFIT ALTHOUGH ONE MUCH REDUCED FROM A YEAR EARLIER THE ITALIAN DAILY FINANCIAL NEWSPAPER IL SOLE24 ORE SAID THE REPORT CITED SOURCES CLOSE TO THE COMPANY AS SAYING THAT FIAT'S INDUSTRIAL OPERATIONS ALONE INCLUDING ITS CAR DIVISION FIAT AUTO ALSO ENDED 1992 WITH AN OPERATING PROFIT ALTHOUGH NO FIGURES WERE GIVEN A FIAT SPOKESMAN DECLINED TO COMMENT ON THE REPORT HE SAID THE FIRST OFFICIAL DETAILS OF FIAT'S 1992 FINANCIAL STATEMENT WILL BE DISCLOSED IN A LETTER TO SHAREHOLDERS AFTER A BOARD MEETING JAN 28 ONE MILAN ANALYST CALLED THE REPORT MILDLY REASSURING NOTING THAT AT THE END OF SEPTEMBER 1992 FIAT OFFICIALS HAD PREDICTED THAT FIAT AUTO WOULD END 1992 IN A BREAKEVEN STATUS OR POSSIBLY POST AN OPERATING LOSS BUT WHO KNOWS THE PROFIT COULD BE TOTALLY INSIGNIFICANT LIKE ONE BILLION LIRE SAID THE ANALYST WHO ASKED NOT TO BE IDENTIFIED FIAT POSTED AN OPERATING PROFIT OF 662 BILLION LIRE 4336 MILLION IN 1991 DOWN 70 FROM THE YEAR EARLIER IN THE FIRST HALF OF 1992 ANALYSTS ESTIMATE THAT FIAT'S OPERATING PROFIT DROPPED TO ABOUT 85 BILLION LIRE ANALYSTS SAY THE PRESS REPORT LACKS INFORMATION ON THE PERFORMANCE OF FIAT'S UNPROFITABLE TRACTOR DIVISION FORD NEW HOLLAND AND OF ITS IVECO TRUCK UNIT AS WELL AS FIGURES ON THE GROUP'S DEBT THAT HAD SOARED TO 25 TRILLION LIRE IN THE FIRST HALF OF 1992 FROM 431 BILLION LIRE A YEAR EARLIER WITHOUT SOME FIGURES ON SPECIFIC INDUSTRIAL SUBSIDIARIES AND ON DEBT THE REPORT IS NOT VERY MEANINGFUL THE MILAN ANALYST SAID THE ANALYST SAID FIAT IS SET TO FACE A DIFFICULT SIX MONTHS AS DEMAND FOR CARS IN ITALY AND EUROPE SLUMPS FROM ALREADYDEPRESSED LEVELS HE SAID FIAT'S NEXT NEW CAR MODEL PART OF A 47 TRILLIONLIRA FIVEYEAR INVESTMENT PLAN ISN'T EXPECTED BEFORE JUNE FIAT SPA'S RECENT SALE OF ITS STAKE IN RETAILER RINASCENTE SPA TO ANOTHER FIAT GROUP HOLDING COMPANY HAS ALSO FUELED RUMORS THAT THE PARENT COMPANY IS LOOKING FOR CASH TO PAY DIVIDENDS THE SALE OF THE RINASCENTE STAKE TO THE HOLDING FIRM SICIND IS ALSO SEEN AS A PRELIMINARY TRANSFER BEFORE THE RETAIL CHAIN IS SOLD TO AN OUTSIDE PARTY TO HELP EASE FIAT'S CONSOLIDATED DEBT 9301080138 930108 LETTERS TO THE EDITOR COLORADANS WERE MISLED ON GAY VOTE VINCENT CARROLL EDITOR OF THE ROCKY MOUNTAIN NEWS MAKES A PERSUASIVE CASE THAT MANY VOTERS IN COLORADO ENDORSED THE ANTIGAY LANGUAGE OF AMENDMENT 2 BECAUSE THEY BELIEVED THAT NO GROUP IS ENTITLED TO SPECIAL RIGHTS COLORADANS ON THE GAY AMENDMENT EDITORIAL PAGE DEC 15 OF COURSE THERE IS NOTHING SPECIAL ABOUT WANTING TO LIVE AS AN EQUAL MEMBER OF SOCIETY PROTECTED FROM IRRATIONAL DISCRIMINATION THE VOTERS OF COLORADO WERE MISLEAD BY THE FAR RIGHT INTO BELIEVING THAT GAY AND LESBIAN AMERICANS ALREADY HAVE THE SAME RIGHTS AS EVERY ONE ELSE DOES AS MR CARROLL NOTES COLORADANS WERE TOLD THAT THE GAY COMMUNITY WANTED AFFIRMATIVE ACTION QUOTAS AND OTHER SPECIAL RIGHTS THOSE WERE LIES PURE AND SIMPLE IN ALL BUT SEVEN STATES IT IS LEGAL TO FIRE PEOPLE FROM THEIR JOBS OR THROW THEM OUT OF THEIR APARTMENTS OR DENY THEM EQUAL ACCESS TO FACILITIES SUCH AS RESTAURANTS OR INSURANCE SIMPLY BECAUSE OF THEIR SEXUAL ORIENTATION THAT IS WHY LAWS ARE NECESSARY TO PROTECT THESE INDIVIDUALS FROM BIGOTRY AND DISCRIMINATION THE VOTERS OF COLORADO CHOSE TO OVERTURN LOCAL LAWS THAT PROTECT LESBIANS AND GAY MEN IN DENVER BOULDER AND ASPEN AND PROHIBIT ANY JURISDICTION IN THE STATE FROM PROTECTING INDIVIDUALS FROM DISCRIMINATION BASED ON SEXUAL ORIENTATION IF THEY DID SO BECAUSE THEY WERE MISINFORMED BY SUPPORTERS OF AMENDMENT 2 THAT THEY WERE VOTING AGAINST SPECIAL RIGHTS THAT IN NO WAY REDUCES THE END RESULT OF THEIR DECISION WHICH IS TO SANCTION DISCRIMINATION AND PROMOTE BIGOTRY MR CARROLL'S ARTICLE FAILED TO REALIZE THAT THIS IS CLEARLY A CIVIL RIGHTS ISSUE NOT ONE OF PREFERENTIAL TREATMENT SODOMY LAWS STILL REMAIN ON THE BOOKS IN MANY STATES DISCRIMINATION AGAINST GAYS IN HOUSING AND EMPLOYMENT IS PERVASIVE GAYS FACE AN INCREASING LEVEL OF VIOLENCE IN THE STREETS WISCONSIN PASSED THE FIRST STATE GAY RIGHTS LEGISLATION IN THE NATION AND IT IS DISCOURAGING TO SEE THE BACKLASH IN COLORADO AND FLORIDA AS A GAY MAN LIVING IN DENVER THIS AMENDMENT AFFECTS ME IN A VERY PERSONAL MANNER I BELIEVE CIVIL RIGHTS SHOULD NEVER BE LEFT UP TO POPULAR VOTE IF THE CITIZENS OF ALABAMA HAD BEEN ASKED TO VOTE ON CIVIL RIGHTS FOR BLACK PEOPLE IN THE 1950S YOU CAN IMAGINE WHAT THE OUTCOME OF THAT ELECTION WOULD BE GAY PEOPLE ARE SUBJECTED TO ALL FORMS OF OPPRESSION FROM PHYSICAL ASSAULTS TO SUBTLE DISCRIMINATION JUST ASK NEARLY ANY STRAIGHT WOMAN HOW SHE FEELS ABOUT LESBIANS AND THAT ANSWER CAN ALMOST ASSUREDLY BE PREDICTED WE ARE DESPISED AND MISUNDERSTOOD BY MOST OF MAINSTREAM AMERICA THE CITIZENS OF DENVER BOULDER AND ASPEN VOTED SEVERAL YEARS AGO TO INCLUDE SEXUAL ORIENTATION INTO THE PROTECTED STATUS OF THEIR CITIES' CHARTERS HOWEVER A SMALL GROUP OF PEOPLE FROM COLORADO SPRINGS ALTHOUGH COMPLETELY UNAFFECTED BY THESE DECISIONS FELT THREATENED BY THIS PROTECTION ENOUGH TO WAGE A STATEWIDE INITIATIVE TO OVERTURN WHAT THOSE VOTERS ALREADY APPROVED NOW WE HAVE MANY PEOPLE SAYING THAT THE PEOPLE HAVE SPOKEN AND THEREFORE WE SHOULD JUST FORGET ABOUT BATTLING THIS AMENDMENT IN REGARD TO MR CARROLL'S EXCELLENT ARTICLE A SIDE EFFECT OF PASSAGE OF AMENDMENT 2 HAS BEEN THE DEATH OF OPEN AND HONEST DEBATE RELATIVE TO THE VARIOUS REASONS FOR THE AMENDMENT'S SUCCESS THE GAY AND LESBIAN COMMUNITY HAS BEEN QUICK TO LABEL EVERYONE WHO VOTED FOR THE AMENDMENT AS 1 BIGOTS 2 HATE MONGERS 3 RADICAL RIGHTWING CHRISTIAN FUNDAMENTALISTS 4 UNEDUCATED AND UNWASHED MASSES 5 NEONAZIS AND OTHER EQUALLY FLATTERING TERMS THOSE OF US WHO DO NOT FEEL WE FIT INTO THESE CATEGORIES YET VOTED FOR PASSAGE OF THE AMENDMENT ARE OFTEN CUT SHORT IN OUR ATTEMPTS TO EXPLAIN WHY WE VOTED THE WAY WE DID BY THOSE WHO FEAR HONEST DEBATE MR CARROLL IS QUITE CORRECT TO POINT OUT THAT A LARGE PERCENTAGE OF COLORADO VOTERS ARE RELUCTANT TO ADD YET ANOTHER GROUP TO THE LIST OF PROTECTED MINORITIES THOSE WHO CHOOSE TO BOYCOTT COLORADO BECAUSE THEY FEEL WE ARE A HATE STATE ARE VERY MISGUIDED HOWEVER A PLEASANT SIDE EFFECT OF THE BOYCOTT FOR COLORADANS COULD MEAN LESS CROWDED SKI SLOPES IN THEIR CONTENTION THAT LAWS SHOULD NOT PROVIDE EXCEPTIONS FOR SPECIFIC CLASSES OF PEOPLE MR CARROLL'S CORRESPONDENTS ARGUE THAT NO GROUP SHOULD RECEIVE SPECIAL PRIVILEGES SURELY THEY KNOW THAT THESE SAME ARGUMENTS WERE USED WHEN BLACKS AND JEWS WERE SEEKING PROTECTION FROM DISCRIMINATION IN EMPLOYMENT HOUSING AND PUBLIC ACCOMMODATIONS THEY DO NOT HOWEVER SUGGEST THAT THE CIVIL RIGHTS CATEGORIES OF RACE AND RELIGION BE ELIMINATED ARE THESE SPECIAL RIGHTS TOO 9301080137 930108 MARKETING & MEDIA ADVERTISING FOOTBALL TELEVISION SPOTS SELL OUT MARKING REBOUND FOR SPORTS ADS BY KEVIN GOLDMAN NBC'S SELLOUT OF ADVERTISING TIME FOR THE SUPER BOWL VIRTUALLY A MONTH BEFORE THE FOOTBALL CLASSIC'S JAN 31 KICKOFF SURPRISED BROADCAST ROW AND MADISON AVENUE ALIKE LAST YEAR CBS WAS STILL SCRAMBLING DAYS BEFORE THE CONTEST TO ACHIEVE SELLOUT STATUS BUT AS IMPORTANT AND FAR LESS NOTICED IS THE BONANZA TAKING SHAPE IN THE SEEMINGLY ENDLESS ROUNDS OF ELIMINATION GAMES IN THE NATIONAL FOOTBALL CONFERENCE AND THE AMERICAN FOOTBALL CONFERENCE THE FOUR GAMES IN THE DIVISIONAL PLAYOFFS SCHEDULED FOR THIS WEEKEND ON CBS AND NBC FOR INSTANCE ARE ABOUT SOLD OUT AT A HEALTHY 200000 FOR A HALFMINUTE SPOT UP FROM 175000 A YEAR AGO THE TWO RESULTING NATIONAL FOOTBALL LEAGUE CHAMPIONSHIP GAMES SCHEDULED FOR JAN 17 ON CBS AND NBC AREN'T GROPING FOR ADVERTISERS EITHER THE GAMES ARE PRACTICALLY DEVOID OF INVENTORY AT PRICES OF 300000 AN INCREASE OF ABOUT 5 OVER LAST YEAR THAT MARKS A SURPRISING REBOUND FOR SPORTS ADVERTISING WHICH HAS BEEN IN AN ESPECIALLY SEVERE SLUMP FOR ABOUT TWO YEARS AND PROFESSIONAL FOOTBALL ISN'T THE ONLY SPORT RAKING IT IN WITH ADVERTISERS THIS YEAR ACCORDING TO NETWORK EXECUTIVES AND MEDIA PLANNERS CBS IS EXPERIENCING HEALTHY PRICE INCREASES FOR ITS NATIONAL COLLEGIATE ATHLETIC ASSOCIATION BASKETBALL GAMES INCLUDING THE 26 TOURNAMENT GAMES AS WELL AS THE FINAL FOUR AND CHAMPIONSHIP GAMES SPORTS IS IN BETTER SHAPE THIS YEAR THAN IN SEVERAL PAST YEARS SAYS RON VON URFF DIRECTOR OF NEGOTIATIONS AT SFM MEDIA CORP A NEW YORK MEDIA PLANNING COMPANY LAST YEAR AD SPENDING FLOCKED TO THE WINTER AND SUMMER OLYMPICS WHICH HOBBLED OTHER SPORTING EVENTS AND THEIR ABILITY TO ATTRACT ADVERTISERS AT THE PRICES SOUGHT BY THE NETWORKS THE ABSENCE OF THE OLYMPICS IS JUST ONE REASON FOR THE UPTICK IN SPORTS AD SPENDING OTHER FACTORS INCLUDE RENEWED CONFIDENCE IN THE ECONOMY HELPED BY THE ELECTION OF BILL CLINTON AS WELL AS AGGRESSIVE SPENDING BY AUTOMOBILE MANUFACTURERS AMONG OTHER COMPANIES SUBARU OF AMERICA INC FOR EXAMPLE WILL LAUNCH A STAGGERING 100 MILLION AD CAMPAIGN DURING THE SUPER BOWL WITH SIX HALFMINUTE TEASERS TO INTRODUCE ITS NEW SUBCOMPACT THE IMPREZA THE ADS FROM THE PHILADELPHIA OFFICE OF AD AGENCY WIEDEN & KENNEDY MARK THE FIRST TIME SINCE 1983 THAT SUBARU WILL APPEAR IN THE SUPER BOWL EACH SPOT WHICH WILL FEATURE A YETTOBEDETERMINED WOMAN ANNOUNCER WILL HIGHLIGHT A PORTION OF THE CAR SUCH AS THE ENGINE ONLY IN THE FINAL SPOT WILL THE ENTIRE CAR WHICH IS EXPECTED IN SHOWROOMS MARCH 1 BE SHOWN THE SUPER BOWL OF COURSE ATTRACTS THE LARGEST SINGLE TELEVISION AUDIENCE OF THE YEAR LAST YEAR AN ESTIMATED 796 MILLION VIEWERS PARTIED AS THE WASHINGTON REDSKINS EMBARRASSED THE BUFFALO BILLS AT LEAST ONE ADVERTISER HOWEVER PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA BELIEVES IT CAN GET MORE BANG FOR ITS MEGABUCKS BY AVOIDING THE SUPER BOWL AND ITS 900000 PRICE TAG FOR A 30SECOND SPOT AND ADVERTISING IN THE PLAYOFFS THE NEW SERIES OF ADS SCHEDULED TO BEGIN AIRING TOMORROW ON GENERAL ELECTRIC'S NBC NETWORK IS THE FIRST TELEVISION CAMPAIGN FROM PRUDENTIAL SECURITIES IN 18 MONTHS THE FINANCIAL SERVICES COMPANY CHOSE THE GAMES TO LAUNCH THE ADS BECAUSE THE GAMES REACH THE AUDIENCE IT WANTS TO REACH INVESTORS WITH HIGH INCOME SAYS BARBARA GLASSER PRUDENTIAL'S DIRECTOR OF ADVERTISING PRUDENTIAL'S REASONING APPEARS TO BE AHEM ROCK SOLID ALTHOUGH RATINGS CONTINUE TO DECLINE FOR THE BROADCAST NETWORKS OVERALL FROM A YEAR AGO THE FOOTBALL PLAYOFFS ARE AT LEAST HOLDING THEIR OWN IN THE TARGET AUDIENCE OF MEN 18 TO 49 YEARS OLD TWO OF LAST WEEKEND'S WILDCARD GAMES ON CAPITAL CITIES/ABC'S NETWORK WERE WATCHED BY 137 NATIONAL CONFERENCE AND 164 AMERICAN CONFERENCE OF US HOMES WITH TV SETS ACCORDING TO AC NIELSEN LAST YEAR THE SAME LEAGUE PLAYOFF GAMES WERE WATCHED BY 142 AND 177 RESPECTIVELY THE RATINGS AND THE WILDCARD GAMES WERE EXCELLENT AND EVERYONE IS HAPPY SAYS STEVE AUERBACH EXECUTIVE VICE PRESIDENT OF NATIONAL BROADCAST AT DEWITT MEDIA A MEDIABUYING COMPANY AND THAT INCLUDES NBC WHICH HAS SCANT NEWS TO BE HAPPY ABOUT THESE DAYS WITH ITS PRIME TIME IN THE DUMPER AND ITS LATENIGHT SCHEDULE IN QUESTION LARRY HOFFNER EXECUTIVE VICE PRESIDENT OF SALES AT NBC SAYS OF THE SUPER BOWL SELLOUT WE WERE ABLE TO WORK MAGIC AT OUR PRICE IN FACT THE NEGOTIATIONS FOR FOOTBALL'S POSTSEASON SAY BROADCASTING EXECUTIVES AND MEDIA BUYERS WERE LESS ABOUT PRICING AND MORE ABOUT WHERE COMMERCIALS WILL BE PLACED ADVERTISERS ARE LESS ENTHUSIASTIC ABOUT BEING PLACED IN FOOTBALL CHAMPIONSHIP GAMES AND THE SUPER BOWL AFTER THE FIRST PART OF THE THIRD QUARTER SUBARU FOR EXAMPLE NEGOTIATED FOR ITS SIX SPOTS IN THE SUPER BOWL TO BE SEEN IN THE SECOND QUARTER AND EARLY IN THE THIRD THAT WAY ITS ADS WILL STILL BE SEEN IN CASE OF A BLOWOUT A NOT UNCOMMON OCCURRENCE IN THE ANNUAL ADFEST AND FOOTBALL EXTRAVAGANZA IN LAST WEEK'S PLAYOFFS HOWEVER WHAT STARTED AS A DEPRESSING ROUT FINISHED AS THE BEST COMEBACK IN NFL HISTORY ON SUNDAY THE HOUSTON OILERS WERE ON THEIR WAY TO A ROMP OVER THE BUFFALO BILLS GOING UP 353 AT THE START OF THE THIRD QUARTER THE BILLS LED BY THEIR BACKUP QUARTERBACK STAGED A RETURN FROM THE DEAD WINNING IN OVERTIME 4138 ADVERTISERS NO DOUBT HOPE FOR MORE OF THE SAME THIS WEEKEND PAUL CAPPELLI IS LEAVING HIS POST AS EXECUTIVE VICE PRESIDENT AND EXECUTIVE CREATIVE DIRECTOR AT AC&R ADVERTISING JUST NINE MONTHS AFTER DEFECTING FROM MCCANNERICKSON TO JOIN THE SMALLER SAATCHI & SAATCHI SHOP AN AC&R SPOKESMAN SAID MR CAPPELLI 37 YEARS OLD AND AC&R CHAIRMAN ALVIN CHERESKIN HAD DISAGREED ON BUSINESS PHILOSOPHY AND CREATIVE ISSUES MR CAPPELLI SAID HE HAD JOINED THE AGENCY HOPING TO HELP IT CREATE A SIGNATURE STYLE OF ADVERTISING IT JUST DIDN'T WORK OUT HE SAID WE WERE HEADED IN DIFFERENT DIRECTIONS OUR CAREER PATHS WEREN'T LINED UP AS FOR WHY HE THOUGHT AC&R EVER HIRED HIM IN THE FIRST PLACE MR CAPPELLI SAID THEY FELL IN LOVE WITH MY REEL MR CAPPELLI IS KNOWN TO HAVE CLASHED WITH THE AGENCY'S OTHER SENIOR MANAGERS AS WELL HE AND HARRY KOENIG THE AGENCY'S CHIEF OPERATING OFFICER EVEN ARGUED ABOUT ADVERTISING PHILOSOPHY IN PRINT IN A PUBLISHED INTERVIEW MR CHERESKIN IS TAKING OVER MR CAPPELLI'S RESPONSIBILITIES A SUCCESSOR ISN'T EXPECTED TO BE NAMED SOME INDUSTRY EXECUTIVES SAID THEY EXPECT MR CAPPELLI TO BEAT A HASTY PATH BACK TO MCCANN A UNIT OF INTERPUBLIC GROUP PARTICULARLY SINCE THAT AGENCY IS HAVING STRAINED RELATIONS WITH ITS OWN CREATIVE DIRECTOR GORDON BOWEN MR BOWEN IS NO LONGER IN CONTROL OF THE CREATIVE TEAM ON THE COCACOLA ACCOUNT AND MR CAPPELLI WORKED ON COKE IN THE PAST CREATING THE MAX HEADROOM SPOTS MCCAFFREY & MCCALL NEW YORK HAS A SECRET WEAPON IN THE PITCH FOR BMW OF NORTH AMERICA'S 70 MILLION ACCOUNT JD POWER & ASSOCIATES MCCAFFREY HAS ENLISTED THE AUTOMOTIVE CONSULTANT WHICH COLLECTS MASSIVE AMOUNTS OF DATA ON CAR OWNER DEMOGRAPHICS CONSUMER PREFERENCES DEALER PERCEPTIONS AND SALES TRENDS IN AN EXCLUSIVE ARRANGEMENT TO PROVIDE ANALYSIS FOR THE PITCH AGENCY PRESIDENT DAN REID SAID POWER WON'T WORK ON ACTUAL STRATEGIES OR ADS THAT MCCAFFREY PRESENTS TO BMW LATER THIS MONTH BUT MCCAFFREY'S ACCESS TO POWER'S RESEARCH AND ANALYSIS WILL HELP THE AGENCY FIND THE PERCEPTION NO ONE ELSE HAS SEEN ABOUT DRIVING A LUXURY CAR THAT WILL MOTIVATE THE CONSUMER MR REID SAYS MCCAFFREY WHICH LOST THE MERCEDESBENZ ACCOUNT LAST YEAR IS UNDER THE GUN TO LAND BMW EARLIER THIS WEEK ANOTHER CLIENT TIFFANY & CO MOVED THE RETAIL PORTION OF ITS ACCOUNT TO INTERPUBLIC GROUP'S MCCANNERICKSON WHILE LEAVING THE CORPORATE PORTION WITH MCCAFFREY WE'RE A RESOURCE SAYS TOM HEALEY A PARTNER AT JD POWER AGOURA HILLS CALIF IT'S MCCAFFREY THAT'S GOING TO WIN OR LOSE THE ACCOUNT THE OTHER FINALISTS IN THE PITCH ARE EARLE PALMER BROWN BETHESDA TBWA ADVERTISING NEW YORK MCCABE & CO NEW YORK AND MULLEN ADVERTISING WENHAM MASS BMW OF NORTH AMERICA IS A UNIT OF GERMANY'S BAYERISCHE MOTOREN WERKE AG 9301080136 930108 MARKETING & MEDIA NETWORKS' CREWS IN SOMALIA PLAN A PARTIAL RETREAT OTHER CRISES AROUND THE GLOBE BECKON THE NEWS TEAMS TO RELIEF OF BOOKKEEPERS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US TROOPS ARE STAYING BEHIND BUT NETWORK NEWS TEAMS HAVE BEGUN SCALING BACK THEIR EXTENSIVE PRESENCE IN SOMALIA AS THE IRAQI MISSILE CRISIS SCOTTISH OIL SPILL AND OTHER EVENTS CLAMOR FOR ATTENTION ON THEIR NEWSCASTS THE DECISIONS TO REDUCE STAFF COME NOT A MOMENT TOO SOON FOR THE BOOKKEEPERS AT THE NEWS DIVISIONS ALTHOUGH THE COSTS HAVEN'T YET APPROACHED THE BUDGETBUSTING GULF WAR EXPENSES OF 1991 SOMALIA COVERAGE HAS BEEN EXTRAORDINARILY EXPENSIVE MUCH OF THE COVERAGE HAS BEEN LIVE AT ALL HOURS OF THE DAY THE ABC NBC AND CBS NETWORKS AS WELL AS CNN HAVE INCURRED HIGHERTHANNORMAL COSTS FOR EVERYTHING FROM EMPLOYEES' FOOD AND WATER WHICH HAVE TO BE FLOWN INTO THE COUNTRY TO THE BRIBES AND PROTECTION MONEY DEMANDED BY THE SOMALI MILITIAS IN ADDITION BECAUSE SOMALI TELEVISION DOESN'T FUNCTION THE NETWORKS HAD TO BRING IN THEIR OWN TRANSMISSION EQUIPMENT AND ENGINEERS AT ONE POINT SUCH UPLINKS WERE COSTING EACH NETWORK MORE THAN 100000 A DAY NO NETWORK IS LEAVING THE COUNTRY ENTIRELY CBS INC'S NEWS DIVISION IS CONSIDERING REMOVING ITS SATELLITE UPLINK EQUIPMENT AND A NUMBER OF EMPLOYEES OVER THE WEEKEND LEAVING BEHIND A SMALLER STAFF THAT WILL USE EQUIPMENT FROM OTHER NEWS ORGANIZATIONS TO FILE REPORTS THE NETWORKS ARE ALSO DISCUSSING POOLING SOME OF THEIR COVERAGE TO MAINTAIN A PRESENCE FOR AS LONG AS THE US MILITARY IS THERE WHILE REDUCING THE OVERALL COST ACCORDING TO SEVERAL NETWORK EXECUTIVES THE OTHER NETWORKS PLAN TO KEEP SATELLITE DISHES ON SITE FOR USE BY REDUCED STAFFS FOR THE MOMENT CABLE NEWS NETWORK'S CREW IS DOWN TO 13 FROM A HIGH OF 45 THE ALLNEWS CABLE CHANNEL OWNED BY TURNER BROADCASTING SYSTEM INC HAS SPENT MORE THAN 1 MILLION ON ITS SOMALIA COVERAGE SINCE US TROOPS MADE THEIR NIGHT LANDING AMID MUCH GLARE OF TV LIGHTS ON DEC 9 DAVID MILLER NBC'S DIRECTOR OF FOREIGN NEWS SAID THE GENERAL ELECTRIC CO UNIT'S NEWS DIVISION HAS REDUCED ITS PRESENCE BECAUSE THE STORY HAS SHIFTED ELSEWHERE THE FEWER EMPLOYEES IN SOMALIA THE EASIER MR MILLER CAN SLEEP IN ADDITION TO BEING EXPENSIVE SOMALIA HAS BEEN A DANGEROUS PLACE FOR JOURNALISTS ONE NBC CAMERAMAN HAD TO BE AIRLIFTED OUT THIS WEEK AFTER A DEMONSTRATOR HIT HIM IN THE HEAD WITH A ROCK CAPITAL CITIES/ABC INC'S ABC NEWS PLANS TO BE IN SOMALIA FOR AN INDEFINITE PERIOD ALBEIT AT LOWER LEVELS SAID RICHARD WALD SENIOR VICE PRESIDENT WE WILL STAY AS LONG AS THERE IS AN AMERICAN INTEREST HE SAID 9301080135 930108 INTERNATIONAL WORLD ECONOMY UNSURE OF CLINTON'S POLICY ON TRADE WASHINGTON ZEROS IN ON TYSON TOME BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMONG THE BESTSELLING PAPERBACKS HERE ALONG WITH CARTOON COLLECTIONS AND ALMANACS IS A RECENT WORK THAT OFFERS NEITHER LAUGHS NOR AN EASY READ INSTEAD WHO'S BASHING WHOM IS AN ACADEMIC STUDY OF TRADE POLICY REPLETE WITH THE MANDATORY GRAPHS JARGON AND FOOTNOTES NO PICTURES YET ITS LOCAL POPULARITY ISN'T SURPRISING THE AUTHOR IS LAURA D'ANDREA TYSON BILL CLINTON'S CHOICE TO HEAD THE COUNCIL OF ECONOMIC ADVISERS ITS BUYERS SEEK CLUES ABOUT WHAT TO EXPECT FROM THE NEW PRESIDENT AND SOME FIND IT UNNERVING SPECIFICALLY THERE'S ANXIETY THESE DAYS AMONG FOREIGN INTERESTS AND US COMPANIES THAT DEPEND ON GLOBAL COMMERCE THEY'VE HAD 12 FAIRLY COMFORTABLE YEARS WITH REPUBLICANS BECAUSE THEY'RE NOT SURE WHAT'S COMING THEY SUSPECT IT MIGHT NOT FOR THEM BE GOOD THAT'S ESPECIALLY SO FOR THE JAPANESE OUTSIDE DR TYSON'S WRITINGS CLUES ARE SCARCE THE NEW US TRADE REPRESENTATIVE IS A POLITICAL OPERATOR WHO SEEMS ON TRADE MATTERS A POLICY CIPHER THE NEW TREASURY SECRETARY IS A SENATOR WHO GENERALLY SUPPORTS OPEN TRADE BUT SOMETIMES FINDS BASHING FOREIGNERS POLITICALLY USEFUL AND BILL CLINTON'S MANY ENDORSEMENTS OF FREER COMMERCE ARE USUALLY FOLLOWED BY LONG HOWEVER DIGRESSIONS LEADING FOR EXAMPLE TO HIS PLANS TO SUPPLEMENT THE TRADE AGREEMENT WITH CANADA AND MEXICO THERE IS ALWAYS THE BUT' AND WHAT COMES AFTER IS NOT QUITE CLEAR SAYS ARTHUR ALEXANDER DIRECTOR OF THE JAPAN ECONOMIC INSTITUTE A THINK TANK HERE SO IT'S LOGICAL TO LOOK IN THE NEW WORK BY AN ABOUTTOBE HIGH OFFICIAL WHOSE CAREER HAS FOCUSED ON TRADE DISPUTES PARTICULARLY WITH JAPAN AND WHAT THE BASHING BOOK DELIVERS ARE GUIDELINES QUITE DIFFERENT FROM THOSE PROFESSED BY THE OUTGOING BUSH ADMINISTRATION A DECLARED CAUTIOUS ACTIVIST DR TYSON AN ECONOMIST WITH A DOCTORATE FROM THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WOULD USE SUBSIDIES DUTIES MARKETSHARING AND OTHER DEVICES TO NURTURE CERTAIN INDUSTRIES NOTABLY HIGHTECH ONES WHICH SHE BELIEVES MERIT SPECIAL FAVORS THOUGH DR TYSON BRISTLES AT THE TERM PROTECTIONIST HER AGENDA INCLUDES CAREFUL GUARDING OF SELECTED COMPANIES FROM UNFAIR FOREIGN COMPETITION BUT ONLY IF SOME NATIONAL INTEREST IS INVOLVED SHE WOULDN'T LET A CRUCIAL NEW TECHNOLOGY BE SWAMPED BY OVERSEAS RIVALS FOR INSTANCE BUT SHE'D DO LESS FOR WELLESTABLISHED INDUSTRIES YET THESE ARE CLEAR DEPARTURES FROM PAST US RHETORIC IF LESS SO FROM RECENT PRACTICE DR TYSON DOESN'T SHARE THE BUSH TEAM'S AVOWED ENTHUSIASM FOR FREE TRADE AS AN END IN ITSELF THOUGH HER LONGTERM GOAL IS EXPANDED TRADE WITH FEWER RESTRAINTS SHE SAYS EXPERIENCE PROVES FREE TRADE IS NOT NECESSARILY AND AUTOMATICALLY THE BEST POLICY SHE WORRIES LESS ABOUT EUROPE'S COMFORT WITH CARTELS THAN ABOUT JAPAN'S ABILITY TO PENETRATE FOREIGN MARKETS WHILE CLOSING ITS OWN THE PECULIAR FEATURES OF JAPANESE CAPITALISM CONTINUE TO IMPEDE ACCESS TO FOREIGN SUPPLIERS AND TO SHAPE COMPETITION TO THE ADVANTAGE OF THEIR JAPANESE RIVALS SHE WRITES THESE ARE THE CLEAREST VIEWS ON RECORD FROM ANY INCOMING OFFICIAL AND IT SEEMS LIKELY MS TYSON GOT HER JOB BECAUSE OF HER OPINIONS NOT DESPITE THEM FOREIGN OBSERVERS EXPECT MR CLINTON TO BE AN ACTIVIST AS DR TYSON COUNSELS WHEN TRADE OR OTHER PROBLEMS ARISE MORE JIMMY CARTER THAN RONALD REAGAN THIS COULD MEAN US RETALIATION AGAINST TRADING PARTNERS IF NEGOTIATIONS THREATEN TO DRAG ON ENDLESSLY BUT THE ACTIVIST TENDENCY ALSO COULD PULL THE ADMINISTRATION INTO COUNTLESS SECONDARY ISSUES A PRESIDENT CANNOT CONTROL OR COORDINATE EVERYTHING SAYS AN OFFICIAL OF THE JAPAN EXTERNAL TRADE ORGANIZATION THE REALITY IS DISPUTES CAN COME FASTER THAN THEY CAN BE SOLVED AND THIS COULD BE A PROBLEM FOR US SOME JAPANESE EXPECT MORE PRESSURE TO CHANGE THEIR TRADING WAYS CLINTON WILL REQUIRE A MORE EQUAL PARTNERSHIP THAN BUSH DID PREDICTS AN OFFICIAL OF ITOCHU CORP A LARGE TOKYO TRADING FIRM EXAMPLES COULD INCLUDE DEMANDS FOR RELAXED JAPANESE RULES ON PRODUCT STANDARDS WHICH HELP RESTRICT FOREIGN GOODS AND MORE USE OF USMADE COMPONENTS BY JAPANESE FACTORIES THE ITOCHU OFFICIAL THINKS A PREEMPTIVE GOODWILL MOVE BY TOKYO ALLOWING RICE IMPORTS MIGHT HELP EUROPEANS ALSO EXPECT MORE TRADE ACTIVISM AS WITH JAPAN SUGGESTS ONE OFFICIAL THE NEW US TEAM MAY REACT FASTER IF ITS DEMANDS AGAINST THE EUROPEAN COMMUNITY AREN'T MET PROMPTLY BUT HE SUGGESTS EC GOVERNMENTS WOULD BE LESS LIKELY TO SURRENDER THEY JUST MIGHT DIG IN 9301080134 930108 BUSINESS BRIEFS UNITED PARCEL SERVICE OF AMERICA INC WILL START A NEW SERVICE THAT GUARANTEES THREEDAY PACKAGE DELIVERY CURRENTLY FEDERAL EXPRESS CORP IS NOT CONSIDERING ADDING A THREEDAY SERVICE A SPOKESMAN SAID ABB GROUP OF ZURICH REACHED AN AGREEMENT TO FORM A JOINT VENTURE WITH PRVNI BRNENSKA STROJIRNA OF THE CZECH REPUBLIC IN THE BOILER TURBINE AND POWER PLANT BUSINESS USA WASTE SERVICES INC HAS ENTERED INTO A FIVEYEAR MANAGEMENT AGREEMENT WITH CLOSELYHELD GALLATIN NATIONAL CO TO MANAGE AND OPERATE THE RECENTLY COMPLETED GALLATIN LANDFILL IN FULTON COUNTY ILL TERMS WEREN'T DISCLOSED DOW CHEMICAL CO SAID IT AND HANNAM CHEMICAL CORP OF THE MIWON GROUP OF SEOUL KOREA HAVE ENTERED INTO A JOINT VENTURE AGREEMENT TO MARKET AND DEVELOP A WIDE RANGE OF POLYURETHANE PRODUCTS IN KOREA ORTHOMET INC WAS GRANTED AN EXCLUSIVE LICENSE FROM THE MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH TO MANUFACTURE AND MARKET AN IMPLANTABLE PROSTHESIS THAT REPLACES THE MIDDLE JOINT IN FINGERS 9301080133 930108 BALKAN BULGARIAN AIRLINES HEADED FOR PRIVATIZATION BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL STATEOWNED BALKAN BULGARIAN AIRLINES IS HEADED FOR PRIVATIZATION THE MANAGING DIRECTOR OF BULGARIA'S PRIVATIZATION AGENCY ALEXANDER ROZHKOV SAID ANALYSTS HOWEVER SAID THEY DON'T EXPECT WESTERN AIRLINES TO SHOW MUCH INTEREST IN THE CARRIER THE AIRLINE PLANS TO SELL AS MUCH AS 49 OF ITS SHARES TO FOREIGN INVESTORS AND OFFER AS MUCH AS 20 TO EMPLOYEES AT PREFERENTIAL PRICES THE GOVERNMENT WOULD RETAIN AT LEAST A STAKE IN BBA TO DEFEND ITS ROLE AS A NATIONAL CARRIER THE AIRLINE HAS APPOINTED SG WARBURG & CO AS FINANCIAL ADVISER BBA WAS VALUED BY ERNST & YOUNG LAST YEAR BUT THE FIGURES WERE NOT DISCLOSED IN 1991 BULGARIA'S FORMER COMMUNIST GOVERNMENT ESTIMATED THE AIRLINE'S VALUE AT 189 MILLION LEVA THEN 9 MILLION BBA LAUNCHED A RESTRUCTURING PROGRAM IN 1990 THAT IS AIMED AT MODERNIZING ITS FLEET OF 60 MOSTLY SOVIETMADE AIRCRAFT WHICH HAVE AN AVERAGE 18 YEARS OF SERVICE NOW BBA IS LOOKING FOR A PARTNER TO HELP WITH FURTHER INNOVATIONS BALKAN AIRLINES HAS A GOOD NETWORK OF FLIGHTS AND DESTINATIONS AND THERE ARE A NUMBER OF RESPECTED FOREIGN FIRMS WHO HAVE DECLARED THEIR INTEREST IN INVESTING IN THE AIRLINE BBA CHIEF EXECUTIVE OFFICER KOSTADIN BOTEV SAID BUT AIRLINE ANALYSTS DON'T THINK FINDING A PARTNER WILL BE EASY WITH THAT KIND OF FLEET AND FLEET AGE ITS PROSPECTS ON THE MOST COMPETITIVE MARKET IN THE WORLD ARE QUESTIONABLE SAID KEVIN MURPHY AN AIRLINE ANALYST WITH MORGAN STANLEY & CO IN LONDON STRATEGICALLY BULGARIA IS NOT MUCH OF AN ACCESS POINT AT ALL IT IS NOT EXACTLY THE MOST COMPELLING SPOT ON THE GLOBE HE SAID THE AIRLINE HOPES TO ATTRACT FOREIGN INVESTORS BY STRESSING ITS LOW LABOR COSTS ACCESS TO A MARKET OF NINE MILLION PEOPLE AND POTENTIAL FOR TOURISM AS WELL AS BULGARIA'S CENTRAL LOCATION IN THE BALKANS AND ITS PROXIMITY TO CENTRAL ASIA SINCE IT WOULD BE A FAIRLY SMALL INVESTMENT ANYWAY WESTERN AIRLINES MIGHT BE INTERESTED IN A FOOTHOLD IN THE BALKANS SAID TACO SIEBURGSJOERDSMA AN AIRLINE ANALYST WITH UBS PHILLIPS & DREW IN LONDON BALKAN BULGARIAN'S PRIVATIZATION COMES AMID A WAVE OF SIMILAR MOVES BY EASTERN EUROPEAN AIRLINES COURTING WEALTHY WESTERN SUITORS WITH ALITALIA BUYING INTO MALEV AND AIR FRANCE INVESTING IN THE CSA I WOULD NOT BE SURPRISED IF LUFTHANSA DECIDES THAT IT WANTS AN EASTERN EUROPEAN AIRLINE ALSO SAID MR SIEBURGSJOERDSMA BOTH MR SIEBURGSJOERDSMA AND MR MURPHY EXPECT WESTERN INTEREST IN THE BULGARIAN CARRIER TO BE MUCH LOWER THAN IT WOULD BE IF BBA WERE A POLISH HUNGARIAN CZECH OR SLOVAK AIRLINE BULGARIA'S REFORM PROCESS WHILE WELL UNDER WAY STILL LAGS BEHIND THAT OF ITS CENTRAL EUROPEAN NEIGHBORS BBA OFFICIALS SAID 1992 WAS A RELATIVELY SUCCESSFUL YEAR FOR THE AIRLINE AFTER IT BEGAN REGULAR SERVICE TO NEW YORK CALCUTTA INDIA JAKARTA INDONESIA KUALA LUMPUR MALAYSIA AND MUSCAT OMAN THEY SAID INCOME INCREASED 24 COMPARED WITH 1991 BUT DID NOT DISCLOSE FIGURES IN 1991 BALKAN BULGARIAN HAD OPERATING PROFIT OF 127 MILLION AND POSTED A PRETAX LOSS OF 51 MILLION ON REVENUE OF 1812 MILLION THIS YEAR THE AIRLINE WANTS TO START FLIGHTS TO TORONTO TEHRAN AND TAIPEI 9301080132 930108 MONEY FUND ASSETS GREW BY 691 BILLION IN THE LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 691 BILLION TO A TOTAL 57701 BILLION FROM 57010 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED BECAUSE OF REPORTING ERRORS AND A CHANGE IN THE NUMBER OF FUNDS REPORTING ASSETS OF 613 RETAIL MONEY MARKET MUTUAL FUNDS ROSE BY 672 BILLION TO 38585 BILLION THE TRADE GROUP SAID ASSETS OF 382 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 350 BILLION TO 30425 BILLION ASSETS OF 231 TAXEXEMPT FUNDS ROSE BY 322 BILLION TO 8159 BILLION ASSETS OF THE 276 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 1881 MILLION TO 19116 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 225 TAXABLE MONEY MARKET FUNDS FELL BY 106 BILLION TO 16871 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 125 BILLION TO 2245 BILLION 9301080131 930108 WHO'S NEWS BIGGS IS CHOSEN TO HEAD EDUCATORS' PENSION FUND NEW YORK JOHN H BIGGS WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE 112 BILLION TEACHERS INSURANCE AND ANNUITY ASSOCIATION AND COLLEGE RETIREMENT EQUITIES FUND ONE OF THE LARGEST INSURANCE AND PRIVATE PENSION ORGANIZATION MR BIGGS 56 YEARS OLD SUCCEEDS CLIFTON R WHARTON JR WHO HAS BEEN NOMINATED TO SERVE AS DEPUTY SECRETARY OF STATE IN THE CLINTON ADMINISTRATION MR BIGGS HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF TIAACREF SINCE 1989 AND WOULD ASSUME HIS NEW POSITION UPON MR WHARTON'S CONFIRMATION BY THE SENATE THOMAS W JONES 43 YEARS OLD WAS NAMED TO SUCCEED MR BIGGS MR JONES HAS BEEN EXECUTIVE VICE PRESIDENT FOR FINANCE AND PLANNING AT TIAACREF SINCE 1989 TIAACREF COUNTS 16 MILLION PEOPLE IN ITS RETIREMENT SYSTEM MOSTLY TEACHERS AND ADMINISTRATORS FROM 5000 COLLEGES UNIVERSITIES INDEPENDENT SCHOOLS AND NONPROFIT EDUCATIONAL ORGANIZATIONS 9301080130 930108 JAPANESE BANKS' GOOD CREDIT MARKS ARE SEEN HOLDING SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE BANKS ARE LIKELY TO RETAIN THEIR RELATIVELY HIGH CREDIT RATINGS DESPITE A RECENT SERIES OF DOWNGRADES THE JAPAN BOND RESEARCH INSTITUTE SAID SINCE MARCH 1991 THE CREDIT RATING AGENCY HAS DOWNGRADED 10 JAPANESE BANKS SOME MORE THAN ONCE BUT ALTHOUGH MOST OF THE MAJOR COMMERCIAL BANKS AND LONGTERM CREDIT BANKS HITHERTO RATED AT TRIPLEA HAVE BEEN DOWNGRADED TO THE DOUBLEA ZONE THEY ARE NOW LIKELY TO RETAIN THEIR RELATIVELY HIGH RATINGS THE INSTITUTE SAID THE CREDITWORTHINESS OF JAPANESE BANKS IS LIKELY TO REMAIN HIGH IN COMPARISON WITH THAT OF GENERAL BUSINESS CORPORATIONS DESPITE ONGOING CHANGES IN THE JAPANESE FINANCIAL SYSTEM THE TOKYOBASED CREDIT RATING AGENCY SAID UNLIKE THE SITUATION IN THE US AND OTHER COUNTRIES THE SAFETY NET AGAINST FAILURE PROVIDED BY THE STRICT SUPERVISION AND GUIDANCE OF THE MINISTRY OF FINANCE AND THE BANK OF JAPAN REMAINS FIRMLY IN PLACE AND THE SUPPORT THIS GIVES TO THE CREDITWORTHINESS OF JAPANESE BANKS REMAIN UNALTERED AT PRESENT THE INSTITUTE GIVES ONLY ONE BANK MITSUBISHI BANK ITS HIGHEST CREDIT RATING OF TRIPLEA THE BIGGEST WORRY FOR JAPANESE BANKS AT THE MOMENT IS THE INCREASE IN PROBLEM ASSETS THE INSTITUTE SAID STILL FALLING MARKET INTEREST RATES ARE PARTLY COMPENSATING FOR THE DROP IN PROFITABILITY AND LATENT PROFITS FROM STOCKS AND REAL ESTATE ARE STILL RELATIVELY HIGH SO THE PROBLEM ASSETS OF JAPANESE BANKS REMAIN AT MANAGEABLE LEVELS THE RATING AGENCY SAID THE FINANCIAL INSTITUTIONS WHOSE BONDS ARE RATED BY JBRI ARE NOT FACED WITH PROBLEMS OF THE KIND THAT COULD THREATEN THE BASIC STRUCTURE OF JAPAN'S FINANCIAL SYSTEM THE INSTITUTE SAID SHORT OF EVENTS SUCH AS THE COLLAPSE OF CERTAIN AILING BANKS WHICH COULD JEOPARDIZE THE STABILITY OF THE FINANCIAL SYSTEM ITSELF FUTURE RATING ADJUSTMENTS CONCERNING BANKS RATED BY JBRI ARE LIKELY TO BE SELECTIVE THE INSTITUTE RATES THE DEBT OF 24 JAPANESE BANKS INCLUDING EIGHT MAJOR COMMERCIAL BANKS ONE LONGTERM CREDIT BANK AND 15 REGIONAL BANKS 9301080129 930108 LETTERS TO THE EDITOR IT'S A BUMPY RIDE ON ROAD TO SUCCESS DENNIS FARNEY'S AMERICAN CIVILIZATION SERIES REPRESENTS AN EXTRAORDINARY EXAMPLE OF THOUGHTFUL REPORTING I WAS NATURALLY QUITE PLEASED WITH HIS FINAL PAGE ONE PIECE ON OCCIDENTAL COLLEGE THAT APPEARED ON DEC 2 MR FARNEY CAPTURED VERY ACCURATELY THE PROGRESS AND SOME OF THE DISAPPOINTMENTS EXPERIENCED BY THE COLLEGE IN ITS SEARCH FOR COMMUNITY LIKE THE AMERICAN NATION ITSELF OCCIDENTAL IS PART OF AN ONGOING PROCESS A DYNAMIC MOVEMENT DESIGNED TO HELP US EMBRACE THE DIFFERENCES AMONG US AT THE SAME TIME THAT IT FORCES US TO RECOGNIZE THOSE COMMON CONCERNS THAT MAKE US CITIZENS OF ONE CAMPUS AND ONE COUNTRY MR FARNEY IS TO BE COMMENDED FOR TURNING TO OCCIDENTAL'S ARTICULATE UNDERGRADUATES FOR MUCH OF THE SUBSTANCE IN HIS ARTICLE THE INSTINCT AMONG ADMINISTRATORS OFTEN LEADS US TO AVOID CANDOR IN FAVOR OF STRICTLY POSITIVE OBSERVATIONS STUDENTS HOWEVER ARE CONSISTENTLY CANDID AND THEIR REMARKS REVEALED THEIR KEEN GRASP OF THE COLLEGE'S MISSION MY DELIGHT IN THE FARNEY PIECE HAS BEEN REINFORCED BY NEWS I RECEIVED DEC 8 THAT ONE OF OUR SENIOR BIOCHEMISTRY MAJORS AN IMMIGRANT FROM ROMANIA WILL BE A RHODES SCHOLAR NEXT YEAR AND THAT A POLITICS MAJOR WHOSE MOTHER EMIGRATED FROM GUYANA WILL PURSUE PEACE STUDIES AS A BRITISH MARSHALL SCHOLAR OUR JOURNEY HERE IN LOS ANGELES MAY OFTEN BE A BUMPY ONE BUT THE CONSISTENTLY HIGH LEVEL OF ACHIEVEMENT AMONG OUR STUDENTS MAKES MANY OF THOSE BUMPS HARDLY NOTICEABLE 9301080128 930108 BUSINESS BRIEF ANNTAYLOR STORES CORP RETAILER'S NET SALES INCREASED 143 IN PERIOD ENDING JAN 2 ANNTAYLOR STORES CORP NEW YORK SAID THAT TOTAL NET SALES INCREASED 143 AND THAT TOTAL COMPARABLESTORE SALES ROSE 8 DURING THE FIVEWEEK PERIOD ENDING JAN 2 NET SALES FOR THE PERIOD TOTALED 58 MILLION UP FROM 508 MILLION DURING THE FIVE WEEKS ENDED JAN 4 1992 NET SALES AMONG OWNED STORES TOTALED 569 MILLION FOR THE FIVE WEEKS UP 163 LEASEDDEPARTMENT SHOE SALES WHICH ARE BEING PHASED OUT TOTALED 11 MILLION DOWN 388 FOR THE FISCAL YEARTODATE PERIOD ENDED JAN 2 THE 219STORE RETAILER'S NET SALES TOTALED 4396 MILLION UP 64 ANNTAYLOR SHARES WERE QUOTED AT 2350 UP 125 IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE 9301080127 930108 LOUISIANA LAND & EXPLORATION CO NEW ORLEANS LOUISIANA LAND & EXPLORATION CO SAID ITS 1993 CAPITAL AND EXPLORATION SPENDING BUDGET OF 170 MILLION IS 15 ABOVE LAST YEAR'S LEVEL THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID THE NEW BUDGET INCLUDES 99 MILLION FOR CERTAIN NORTH AMERICAN PROJECTS AND 48 MILLION FOR OVERSEAS VENTURES 9301080126 930108 MILAN STOCKS EXPECTED TO POST GAIN OF 510 FIRSTQUARTER RISE IS TIED TO PRIVATIZATION PLANS AND POSSIBLE INCENTIVES BY JO WINTERBOTTOM SPECIAL TO THE WALL STREET JOURNAL MILAN THE MILAN STOCK MARKET COULD INDEED SEE A HAPPY NEW YEAR ANALYSTS PREDICT AS THE ITALIAN GOVERNMENT'S PRIVATIZATION PLANS TAKE SHAPE AND INCENTIVES FOR STOCK INVESTORS ARE INTRODUCED ANALYSTS SUGGEST THESE TWO FACTORS COULD CONTRIBUTE TO A 5 TO 10 BOOST IN THE MARKET'S GENERAL MIB INDEX DURING THE FIRST QUARTER THE INDEX WAS RESET TO 1000 TUESDAY FOR THE START OF THE NEW YEAR PAUL DIONNE AN ANALYST WITH SECURITIES HOUSE PASFIN SPA SAID A 10 INCREASE IN THE FIRST QUARTER WOULDN'T BE OUT OF HAND PARTICULARLY IF INTEREST RATES ARE DECREASED BY 050TOONE PERCENTAGE POINT IN THE PERIOD THE BANK OF ITALY LAST CUT ITS KEY DISCOUNT RATE BY ONE PERCENTAGE POINT TO 12 ON DEC 22 BUT THE LIRA'S CURRENT WEAKNESS ON FOREIGN EXCHANGE MARKETS APPEARS LIKELY TO DELAY ANY FURTHER DECREASES ANY FIRSTQUARTER RALLY WOULD BE BUILDING ON THE MORE POSITIVE TREND THAT EMERGED DURING DECEMBER BUT IT WOULD MARK A SWING FROM THE MOOD OF 1992 AS A WHOLE WHICH SAW THE GENERAL MIB INDEX FALLING NEARLY 12 TO END THE YEAR AT 884 IT'LL BE A GOOD FIRST QUARTER SAID ALBERT ALONZO AN ANALYST WITH NOMURA SECURITIES IN LONDON WITH THE MARKET BENEFITING FROM THE SHEEN OF PRIVATIZATIONS THE GOVERNMENT'S PRIVATIZATION PLAN CALLS FOR BANK CREDITO ITALIANO SPA TO BE SOLD BEFORE MARCH 31 AND FOR THE SPEEDY DISPOSAL OF ASSETS OF STATE FOOD GROUP SOCIETA MERIDIONALE FINANZIARIA SPA KNOWN AS SME AND ALTHOUGH APPROVAL OF A PACKAGE OF INCENTIVES FOR STOCK MARKET INVESTORS HAS BEEN DELAYED ANALYSTS ARE FIRED UP ABOUT THESE TOO THE INCENTIVES SHOULD BOOST THE STOCK MARKET SAID FIONA MARSHALL ITALY ANALYST WITH KLEINWORT BENSON RESEARCH IN LONDON THE INCENTIVES SHOW THE GOVERNMENT IS FAIRLY SERIOUS ABOUT PREPARING THE MARKET FOR PRIVATIZATIONS ADDED PAUL GORDON ITALIAN ANALYST AT UBS PHILLIPS & DREW THE GOVERNMENT'S PLANS ARE EXPECTED TO INCLUDE TAX BREAKS FOR STOCK MARKET INVESTORS AND A REDUCTION IN ITS LEVY ON INDIVIDUAL SHARE TRANSACTIONS TO 1000 LIRE 66 CENTS FROM THE CURRENT 2500 LIRE PRIVATIZATION CANDIDATES SUCH AS CREDITO ITALIANO AND SME ARE GENERALLY WELLFAVORED ALONG WITH OTHER STOCKS EXPECTED TO BENEFIT FROM THE EFFECT OF STATE SALES TWO SUCH SPILLOVER BENEFICIARIES OF PRIVATIZATIONS COULD BE MERCHANT BANK MEDIOBANCA SPA AND MORTGAGE HOUSE CREDITO FONDIARIO SPA SAID PASFIN'S MR DIONNE CREDITO ITALIANO HOLDS STAKES IN BOTH THESE COMPANIES AND IT'S NOT YET CLEAR HOW THESE HOLDINGS WILL BE AFFECTED ONCE CREDITO HAS BEEN SOLD SPECULATION THAT THEIR STATUS WILL MOVE TOWARD PRIVATE OWNERSHIP HOWEVER IS FUELING BUYING INTEREST ANALYSTS SAID MEANWHILE THE LIRA'S WEAKNESS WHICH HAS SEEN IT EFFECTIVELY DEVALUED BY SOME 20 AGAINST THE GERMAN MARK SINCE IT DROPPED OUT OF THE EUROPEAN EXCHANGE RATE MECHANISM ON SEPT 17 SHOULD BOOST STOCKS WEIGHTED TOWARDS DOLLAR EARNINGS ANALYSTS SAID THOSE COMPANIES ARE EXPECTED TO SHOW HIGHER EARNINGS FROM THE FOREIGN EXCHANGE GAINS OF A RELATIVELY HIGHER DOLLAR CLOTHING MANUFACTURER AND RETAILER BENETTON GROUP SPA WHICH HAS EXTENSIVE US SALES IS PICKED OUT BY NOMURA'S MR ALONZO BECAUSE OF THE SUDDEN STROKE OF LUCK FROM THE LIRA'S FALL BUT HE ALSO FAVORS BENETTON AS LIKELY TO BENEFIT IF THERE ARE ANY SIGNS OF ECONOMIC RECOVERY ANOTHER DOLLAREARNING STOCK SINGLED OUT BY ANALYSTS IS SAFILO SPA A MAKER OF SPECTACLE FRAMES IT'S THE MOST DOLLARSENSITIVE STOCK IN ITALY SAID ONE ANALYST WHO ASKED NOT TO BE IDENTIFIED PASFIN'S MR DIONNE ALSO FAVORS DANIELI & C AN INDUSTRIAL MACHINE MANUFACTURER THAT HAS STRONG DOLLAR EARNINGS THE INSURANCE SECTOR IS ANOTHER AREA LIKELY TO BENEFIT FROM RECENT GOVERNMENT MEASURES ANALYSTS SAID PLANNED REFORMS OF HEALTH CARE PENSIONS AND THE DEREGULATION OF THE AUTO INSURANCE SECTOR ARE ALL EXPECTED TO BOOST THE INSURANCE BUSINESS ANALYSTS SAID ITALY'S LARGEST INSURER ASSICURAZIONI GENERALI SPA IS A BUY SAID UBS'S MR GORDON KLEINWORT BENSON RESEARCH ALSO TIPS GENERALI IN ITS MONTHLY REPORT ON ITALIAN EQUITIES ALONG WITH RIUNIONE ADRIATICA DI SICURTA SPA ANOTHER POCKET OF INTEREST ONE ANALYST SAID COULD BE STOCKS CONNECTED WITH THE DEVELOPMENT OF ITALY'S RAILWAYS IF INVESTMENTS ARE INCREASED WHEN STATE CONTROL IS RELAXED THAT COULD BOOST THE SHARE PRICE FOR EXAMPLE OF RAILWAY SIGNAL MANUFACTURER SASIB SPA CONSTRUCTION COMPANY STOCKS SOME ANALYSTS SAID COULD ALSO BENEFIT FROM INVESTMENT PLANS FOR THE RAILWAYS BUT OTHERS DISAGREE SAYING THAT THE SLOWDOWN IN PUBLIC CONTRACTS IN 1992 IN THE WAKE OF CORRUPTION SCANDALS SHOWS NO SIGN OF AN UPTURN IN 1993 IN ADDITION RISING ENERGY COSTS LARGELY DENOMINATED IN DOLLARS COULD BRING MORE BAD NEWS FOR THE CONSTRUCTION SECTOR AN EXCEPTION TO THIS COULD BE CEMENT PRODUCER UNICEM SPA SAID UBS'S MR GORDON 9301080125 930108 POLITICS & POLICY SAUDI FAMILY ALLOWED TO TAKE FUNDS OUT OF US DESPITE BCCI INDICTMENT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE RECENTLY PERMITTED SAUDI ARABIA'S LEADING BANKING FAMILY TO MOVE MORE THAN 500 MILLION OUT OF THE US DESPITE THE LEGAL PROBLEMS OF THE FAMILY'S MOST PROMINENT MEMBER ACCORDING TO PEOPLE FAMILIAR WITH THE TRANSACTION THE TRANSFER OF THE BIN MAHFOUZ FAMILY'S MONEY OCCURRED EVEN THOUGH SHEIK KHALID BIN MAHFOUZ HAS BEEN INDICTED FOR BANK FRAUD BY A NEW YORK STATE GRAND JURY AND CHARGED WITH SERIOUS BANKING INFRACTIONS BY THE FED MEANWHILE THE FAMILY'S BANK NATIONAL COMMERCIAL BANK OF SAUDI ARABIA HAS BEEN FORCED TO CLOSE ITS BRANCH IN NEW YORK SHEIK KHALID WAS A DIRECTOR AND MAJOR SHAREHOLDER OF BCCI HOLDINGS LUXEMBOURG SA AND THE HOLDING COMPANY OF WASHINGTON'S FIRST AMERICAN BANKSHARES INC THE MANHATTAN DISTRICT ATTORNEY'S OFFICE HAS CHARGED THAT SHEIK KHALID BENEFITED FROM FRAUD AT BCCI PURLOINING HUNDREDS OF MILLIONS OF DOLLARS OF DEPOSITORS' MONEY FROM THE CORRUPT BANK THE FED'S RECENT ACTIONS TOWARD THE BIN MAHFOUZ FAMILY HAVE LED TO CONCERN AMONG SOME BANK REGULATORS AND INVESTIGATORS THAT THE CENTRAL BANK IS SEEKING TO SHIELD THE SAUDI ARABIAN BANK WHICH COUNTS THE SAUDI ROYAL FAMILY AMONG ITS CUSTOMERS FROM THE HARSHER CONSEQUENCES OF THE GOVERNMENT ACTIONS AGAINST IT A FED SPOKESMAN SAID THE AGENCY HAD NO COMMENT ON THE MATTER THE FED FACILITATED THE TRANSFER OF BIN MAHFOUZ MONEY BY AGREEING AT THE END OF OCTOBER TO THE LIFTING OF A RESTRAINT ORDER ON SHEIK KHALID'S US ASSETS THE FED HAD SECURED THE ASSET FREEZE AFTER IT ISSUED AN ORDER EARLY IN JULY THAT SOUGHT TO IMPOSE A FINE OF 170 MILLION ON THE SAUDI ARABIAN BANKER ALLEGING THAT THROUGH A DEAL WITH TOP BCCI OFFICERS IN THE LATE 1980S HE IMPROPERLY SOUGHT TO GAIN OWNERSHIP OR CONTROL OF FIRST AMERICAN'S HOLDING COMPANY SHEIK KHALID'S NEW YORK LAWYER GARY NAFTALIS SAID THE STATE AND FED CHARGES AGAINST HIS CLIENT HAVE NO MERIT HE ALSO MAINTAINED THAT FUNDS TRANSFERRED WEREN'T SPECIFICALLY SHEIK KHALID'S MONEY BUT INDICATED THAT IT BELONGED TO OTHER FAMILY MEMBERS HE DECLINED TO COMMENT IN DETAIL ON THE TRANSFER OF THE MORE THAN 500 MILLION THE FED WITHDREW ITS RESTRAINT ORDER ON SHEIK KHALID'S US ASSETS OCT 29 IN EXCHANGE FOR A 100 MILLION PLEDGE OF FUNDS FROM THE SAUDI SHEIK TO COVER A POSSIBLE FINE THE FED ITSELF WAS AWARE OF THE PLANNED TRANSFER OF BIN MAHFOUZ MONEY BEFORE LIFTING THE FREEZE ON THE ASSETS ACCORDING TO THE PEOPLE FAMILIAR WITH THE TRANSACTION THAT THEY SAID WAS BECAUSE THE BANK TRANSMITTING THE MONEY HAD INFORMED THE FED OF THE PROPOSED TRANSFER THE TRANSFER OF THE MONIES TOOK PLACE JUST HOURS AFTER THE FED SIGNED THE ORDER ENDING THE ASSET FREEZE PEOPLE FAMILIAR WITH THE TRANSACTION SAID SHEIK KHALID'S LAWYERS YESTERDAY MADE A FORMAL FILING WITH THE FED DENYING THE FED'S CHARGES AND REQUESTING A HEARING SO THAT THEY MAY BE DISMISSED SHEIK KHALID NEVER SOUGHT TO GAIN OWNERSHIP OR CONTROL OF FIRST AMERICAN'S HOLDING COMPANY HIS LAWYERS SAID HIS TRANSACTIONS IN BCCI AND FIRST AMERICAN SHARES WERE CARRIED OUT IN GOOD FAITH AND EXAMINED BY HIS US LAWYERS THE FILING MAINTAINED OUR POSITION IS THAT SHEIK KHALID AND HIS FAMILY ARE THE PRINCIPAL VICTIMS OF THE DEMISE OF BCCI SAID MR NAFTALIS HE SAID SHEIK KHALID WHO IS IN SAUDI ARABIA AND HIS FAMILY HAD 450 MILLION ON DEPOSIT AT BCCI AT THE TIME OF ITS SEIZURE IN JULY 1991 IT IS ESTIMATED THAT BCCI DEPOSITORS MAY GET ONLY 30 CENTS OR 40 CENTS BACK FOR EACH DOLLAR ON DEPOSIT 9301080124 930108 WHO'S NEWS RJR NABISCO HOLDINGS CORP RJR NABISCO HOLDINGS CORP NEW YORK ROBERT T JONES 52 YEARS OLD WAS NAMED VICE PRESIDENT OF THIS TOBACCO AND FOOD COMPANY AND ITS RJR NABISCO FOUNDATION MR JONES WHOSE POSITION IS EFFECTIVE JAN 25 IS CURRENTLY ASSISTANT SECRETARY OF LABOR AT THE LABOR DEPARTMENT AS THE ONLY CORPORATE VICE PRESIDENT AT THE FOUNDATION WHICH PROMOTES EDUCATION REFORM AND WORK FORCE TRAINING EFFORTS MR JONES WILL REPORT TO ROGER D SEMERAD SENIOR VICE PRESIDENT OF THE PARENT COMPANY AND PRESIDENT OF THE FOUNDATION 9301080123 930108 LABOR DESIGNEE REICH URGES MORE INPUT BY WORKERS TO AID JOB QUALITY SAFETY BY KEVIN G SALWEN AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARYDESIGNEE ROBERT REICH TOLD THE SENATE LABOR COMMITTEE THAT COMPANIES NEED TO GIVE WORKERS MORE SAY TO IMPROVE JOB QUALITY AND INCREASE WORKPLACE SAFETY IN A CONFIRMATION HEARING THAT PLEASED UNION LEADERS MR REICH WHO IS EXPECTED TO BE EASILY APPROVED BY THE SENATE SAID THE TWODECADE DECLINE IN UNION MEMBERSHIP ISN'T HEALTHY AND HE SAID HE WANTS TO RETURN THE LABOR DEPARTMENT TO ITS TRADITION OF BACKING WORKERS A POINT HE DROVE HOME BY CALLING THE AGENCY THE DEPARTMENT OF THE AMERICAN WORKFORCE A LECTURER AT HARVARD UNIVERSITY'S KENNEDY SCHOOL OF GOVERNMENT AND CLOSE ADVISER OF PRESIDENTELECT CLINTON THE NOMINEE SPENT MUCH OF THE ROUGHLY THREEHOUR SESSION ANSWERING FRIENDLY QUESTIONS TOSSED BY SENATE DEMOCRATS EAGER FOR HIS COOPERATION ON THEIR LEGISLATIVE AGENDA OF FAMILY LEAVE AND SAFETYACT REFORM EVEN REPUBLICANS REFUSED TO BARE THEIR TEETH AT HIM OFFERING LITTLE MORE THAN CAUTION AGAINST BOOSTING SPENDING ON ILLDEFINED TRAINING PROGRAMS BUT MR REICH DIDN'T PROMISE UNIONS ALL THEY WANTED FOR EXAMPLE HE SIDED WITH COMMITTEE REPUBLICANS WHEN HE SAID HE WOULD SEEK LEGISLATION IF THE NATIONAL LABOR RELATIONS BOARD TAKES A HARD STAND AGAINST LABORMANAGEMENT COMMITTEES WHICH MANY UNIONS ARGUE THREATENS ORGANIZED LABOR AND HE ADVISED UNIONS THAT THEY WOULD NEED TO BE MORE FLEXIBLE IN THEIR DEALINGS WITH MANAGEMENT MEANWHILE FEDERICO PENA MR CLINTON'S CHOICE FOR TRANSPORTATION SECRETARY TOLD THE SENATE COMMERCE COMMITTEE YESTERDAY THAT THE NOTION OF REREGULATION IS NOT ON MY RADAR SCREEN THE FORMER DENVER MAYOR WHO IS ALSO EXPECTED TO BE APPROVED BY THE SENATE TOOK ISSUE WITH A RECENT EDITORIAL IN THIS NEWSPAPER THAT SAID HE THINKS THAT REGULATION IS GOOD BUSINESS RATHER HE SAID HE BELIEVES IN THE FREEMARKET SYSTEM BUT WANTS TO FORGE NEW PARTNERSHIPS WITH THE AIRLINE AND TRUCKING INDUSTRIES TO TRY TO SOLVE PROBLEMS WROUGHT BY DEREGULATION AT HIS CONFIRMATION HEARING MR REICH SAID HE HOPES TO FUNNEL FUNDS TO PRIVATE INDUSTRY TO ALLOW COMPANIES TO IMPROVE TRAINING PROGRAMS FOR WORKERS PARTICULARLY THE ROUGHLY 75 OF WORKERS WITHOUT A COLLEGE DEGREE UNSKILLED UNTRAINED AMERICANS ARE LOSING OUT HE SAID IF NOT COMPETING WITH LOWWAGE WORKERS ABROAD THEY INCREASINGLY ARE COMPETING WITH NEW TECHNOLOGIES AT HOME WHICH ARE REPLACING ROUTINE WORK OF ALL KINDS HE SAID HE PREFERS TRAINING PROGRAMS DRIVEN BY THE PRIVATE SECTOR TO SUCH GOVERNMENTRUN APPROACHES AS THE NEW DEAL WORKS PROJECT ADMINISTRATION GOVERNMENT PROGRAMS ARE A VERY EXPENSIVE UNDERTAKING HE SAID TO ACHIEVE THOSE GOALS MR REICH SAID HE WILL TAKE A HARD LOOK AT THE 125 TRAINING PROGRAMS RUN BY THE LABOR DEPARTMENT IN AN EFFORT TO CREATE ONESTOP SHOPPING FOR WORKERS LOOKING FOR A JOB OR STUDENTS COMING OUT OF SCHOOL MR REICH ALSO REFUSED TO BACK DOWN ON A PLAN THAT WOULD FORCE COMPANIES TO SET ASIDE 15 OF THEIR PAYROLL FOR WORKER TRAINING INDUSTRY IS EXPECTED TO FIGHT SUCH A MANDATE ASKED ABOUT A RECENT CASE IN WHICH THE NATIONAL LABOR RELATIONS BOARD CALLED WORKERMANAGEMENT COMMITTEES ILLEGAL AT A SMALL INDIANA COMPANY MR REICH CONTENDED THAT THE DECISION WAS NARROW AND SHOULDN'T BE A SETBACK TO FACTORYFLOOR COOPERATION BUT HE SAID IF THAT RULING OR OTHER NLRB ACTIONS THREATENED TO CHILL LABORMANAGEMENT RELATIONS I WILL BE SEEKING LEGISLATION AND HE LAMENTED THE DECLINE OF UNION MEMBERSHIP TO LESS THAN 12 OF THE WORKERS IN PRIVATE INDUSTRY I DON'T THINK IT'S HEALTHY WORKERS NEED A VOICE HE ASSERTED WHERE WORKERS HAVE A VOICE THERE IS PRODUCTIVITY AND PROFITABILITY HE ADDED THAT HE WOULD WORK TO MAKE THAT ENVIRONMENT MORE FRIENDLY FOR UNION ENROLLMENT AT THE SAME TIME HE CALLED ON ORGANIZED LABOR TO BE VERY CREATIVE IN WORKING WITH MANAGEMENT IN THE FUTURE THE LABOR SECRETARY DESIGNEE ALSO REPEATEDLY ARGUED THAT THE BEST COMPANIES ARE THOSE WITH FAMILYFRIENDLY POLICIES ALLOWING THEM TO HAVE THE PICK OF EMPLOYEES HE URGED OTHER COMPANIES TO USE THOSE FIRMS WHICH HAVE BETTER WORKING CONDITIONS AND MORE RELAXED LEAVE POLICIES AS MODELS TO IMPROVE CONDITIONS FOR WORKERS AND MANAGEMENTWORKER TIES AT MR PENA'S HEARING HE FACED A RAFT OF QUESTIONS ABOUT THE BATTERED AIRLINE AND MARITIME INDUSTRIES SEVERAL SENATORS CITING WEDNESDAY'S REPORT THAT UAL CORP'S UNITED AIRLINES PLANS TO LAY OFF 2800 WORKERS URGED MR PENA TO MOVE SWIFTLY TO HELP THE NATION'S CARRIERS IN REPLY HE SAID A GENERAL STRENGTHENING OF THE ECONOMY WOULD BOLSTER THE AIRLINES BY INCREASING DEMAND IN ADDITION HE SAID HE WOULD WORK HARD TO DEVELOP NEW AIRPORT CAPACITY TO REDUCE COSTLY DELAYS AND PURSUE AGGRESSIVELY INCREASED OPPORTUNITIES ABROAD FOR US CARRIERS HE ALSO SAID IT WOULD BE A GOOD IDEA TO CREATE A COMMISSION TO LOOK INTO THE INDUSTRY'S PROBLEMS UNITED CHAIRMAN STEPHEN WOLF HAS CALLED FOR SUCH A PANEL LATE LAST YEAR CONGRESS PASSED LEGISLATION DIRECTING THE TRANSPORTATION DEPARTMENT TO SET UP A COMMISSION WHATEVER ROUTE WE TAKE I THINK IT'S A GOOD IDEA TO BRING THE BEST MINDS TOGETHER AND STUDY THE ISSUE INTENSIVELY WE HAVE TO TAKE SOME ACTION THE AIR TRANSPORT ASSOCIATION WHICH REPRESENTS THE US AIRLINE INDUSTRY WELCOMED MR PENA'S CALL FOR A GOVERNMENTINDUSTRY PARTNERSHIP BUT IT WARNED THAT US AIRLINES ALSO NEED SOME IMMEDIATE TAX AND REGULATORY RELIEF THAT MUST BE ADDRESSED IF WE ARE TO PUT A STOP TO THE LAYOFF NOTICES FOR AIRLINE EMPLOYEES 9301080122 930108 DAILY NEWS GAINS NEW LIFE PURCHASE BECOMES FINAL BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REALESTATE DEVELOPER AND PUBLISHER MORTIMER ZUCKERMAN COMPLETED HIS ACQUISITION OF THE NEW YORK DAILY NEWS FOR 363 MILLION INHERITING AN ANGRY PACK OF WRITERS AND EDITORS MR ZUCKERMAN SIGNED THE PURCHASE AGREEMENT LATE YESTERDAY AND WILL TAKE THE PAPER OUT OF BANKRUPTCYCOURT PROCEEDINGS TODAY ALTHOUGH HE HAS NEGOTIATED AGREEMENTS WITH MOST OF THE PAPER'S UNIONS THERE IS NO AGREEMENT WITH THE NEW YORK NEWSPAPER GUILD WHICH REPRESENTS 540 EDITORIAL ADVERTISING AND BUSINESS EMPLOYEES THOSE EMPLOYEES TECHNICALLY BECAME UNEMPLOYED YESTERDAY AND DAILY NEWS EXECUTIVES BEGAN NOTIFYING THE APPROXIMATELY 340 GUILD MEMBERS THEY PLAN TO REHIRE SOME REPORTERS TRAVELING ON ASSIGNMENT WERE RECEIVING THEIR DECISIONS BY FEDERAL EXPRESS LETTER MR ZUCKERMAN CONCEDED THAT HE WILL HAVE TO RESTORE MORALE IN THE NEWSROOM BUT INSISTS THE GUILD NEVER UNDERSTOOD THE SEVERITY OF THE DAILY NEWS'S ECONOMIC SITUATION THE TABLOID HAD LOSSES OF 100 MILLION IN THE PAST 10 YEARS THEY THOUGHT THE PROBLEM WAS THREE INCHES BUT WE FELT IT WAS MORE LIKE THREE YARDS MR ZUCKERMAN SAID AND WE BARGAINED IN GOOD FAITH WE JUST COULDN'T REACH AN AGREEMENT MR ZUCKERMAN PROMISES TO MAKE THE DAILY NEWS A POPULAR POPULIST PAPER FOR NEW YORKERS AND WANTS THE PAPER TO DEVOTE MORE TIME TO INVESTIGATIVE REPORTING AND ONLY IN NEW YORK STORIES HIS FIRST MAJOR EDITORIAL APPOINTMENT WILL BE RICHARD ESPOSITO CITY EDITOR FOR NEW YORK NEWSDAY MR ESPOSITO WHO WAS A REPORTER AT THE DAILY NEWS WILL BECOME METROPOLITAN EDITOR AT A MEETING LAST NIGHT BETWEEN MANAGEMENT AND EDITORIAL WORKERS THE PAPER'S EDITOR AND PUBLISHER JAMES P WILLSE SAID HE WILL LEAVE THE PAPER AFTER A BRIEF TRANSITION PERIOD MR ZUCKERMAN WHO PUBLISHES THE WEEKLY NEWS MAGAZINE US NEWS & WORLD REPORT IS TAKING OVER A NEWSPAPER THAT WAS ONCE THE NATION'S LARGEST DAILY WHEN IT WAS OWNED BY THE TRIBUNE CO CHICAGO A 1990 STRIKE AGAINST THE TRIBUNE CO EVENTUALLY LED TO THE NEWSPAPER'S PURCHASE BY BRITISH PUBLISHER ROBERT MAXWELL BUT THE NEWSPAPER ENTERED BANKRUPTCYCOURT PROCEEDINGS WHEN HE DROWNED IN 1991 AND MR ZUCKERMAN FINALLY EMERGED AS THE SUCCESSFUL BUYER THE PURCHASE IS EXPECTED TO REIGNITE THE BATTLE FOR ADVERTISERS AND READERS IN NEW YORK CITY AMONG THE CITY'S FOUR MAJOR NEWSPAPERS THE NEW YORK POST OWNED BY INVESTOR PETER KALIKOW HAS GAINED SOME GROUND DURING THE DAILY NEWS'S PROBLEMS AS HAS TIMES MIRROR CO'S NEW YORK NEWSDAY BUT THE DAILY NEWS DESPITE BEING IN BANKRUPTCYLAW PROCEEDINGS HAS INCREASED ITS CIRCULATION TO MORE THAN 800000 SINCE THE 1990 STRIKE THE NEW YORK TIMES CO'S FLAGSHIP NEWSPAPER MAY BENEFIT MOST FROM A REBORN DAILY NEWS BECAUSE IT WILL HELP KEEP NEWSDAY DIVERTED FROM CHALLENGING THE NEW YORK TIMES HEADTOHEAD 9301080120 930108 STILL GUILTY AFTER ALL THESE YEARS BY SAM TANENHAUS SO GEN DIMITRY A VOLKOGONOV HAS CHANGED HIS MIND ALGER HISS IS NOT INNOCENT AND WHAT'S MORE THE GENERAL NEVER MEANT TO IMPLY HE WAS HIS CATEGORICAL EXONERATION OF MR HISS MADE PUBLIC ON OCT 29 TO TREMENDOUS FANFARE WAS NOT PROPERLY UNDERSTOOD THE GENERAL EXPLAINED TO THE NEW YORK TIMES ON DEC 16 IN FACT HE WAS A BIT TAKEN ABACK BY THE EXCITEMENT THE STATEMENT CAUSED THIS ADMISSION FOLLOWED A SHEEPISH LETTER THE GENERAL PUBLISHED IN THE MOSCOW PAPER NEZAVISIMAYA GAZETA ON NOV 24 IN IT HE EXPLAINED HOW HE CAME TO HELP MR HISS IN THE FIRST PLACE IT SEEMS MR HISS HAD REPEATEDLY BESEECHED GEN VOLKOGONOV TO RUMMAGE THROUGH SOVIET INTELLIGENCE ARCHIVES IN ORDER TO ESTABLISH THAT MR HISS HAD NOT COMMITTED ESPIONAGE THE GENERAL IGNORED THESE PLEAS UNTIL HE WAS TOLD THAT MR HISS WAS EIGHTYEIGHT YEARS OLD AND ONLY WANTED TO DIE PEACEFULLY WITHOUT BEING BRANDED A SPY' MOVED BY MR HISS'S PLIGHT THE GENERAL CALLED ON YEVGENY PRIMAKOV HEAD OF RUSSIAN FOREIGN INTELLIGENCE FORMERLY THE KGB WHO THEN ORDERED A SEARCH OF AVAILABLE FILES A CURSORY CHECK TURNED UP NOTHING SO GEN VOLKOGONOV WROTE A CONGRATULATORY LETTER TO MR HISS RICH IN WARM SENTIMENT THE LETTER WAS LESS RICH HOWEVER IN FACTUAL CONTENT THE GENERAL DIDN'T MENTION THAT ONLY KGB FILES HAD BEEN EXAMINED EVEN THOUGH MR HISS'S EXCOMRADE WHITTAKER CHAMBERS HAD TESTIFIED THAT THE ESPIONAGE OUTFIT THEY WORKED FOR WAS AN ENTIRELY DIFFERENT AND RIVAL AGENCY THE GRU MILITARY INTELLIGENCE NOR DID GEN VOLKOGONOV INFORM MR HISS THAT THE FILES HE HAD LOOKED AT WERE INCOMPLETE MANY DOCUMENTS HAVING BEEN DESTROYED LONG AGO THESE WERE JUST A FEW OF GEN VOLKOGONOV'S OVERSIGHTS OTHERS WERE POINTED OUT BY SOVIETOLOGISTS AND BY EXPERTS ON THE HISS CASE WHO ALL REACTED WITH SURPRISE WHEN THE VINDICATION WAS FIRST ANNOUNCED IN OCTOBER AND CAUTIONED AGAINST ITS BEING TAKEN SERIOUSLY THEIR ADVICE WENT UNHEEDED FOR THE REHABILITATION OF ALGER HISS WAS ALREADY UNDER WAY MR HISS WROTE THE EDITORS OF THE BOSTON GLOBE CAN BE GRATIFIED TO HAVE HIS REPUTATION BACK THEY ADDED SONOROUSLY THAT MR HISS'S TRIBULATIONS AND THE ZEALOTRY OF HIS ACCUSER WILL ENTER HISTORY AS A DRAMATIC ALLEGORY OF A COLD WAR THAT DISFIGURED SO MANY LIVES IN THIS CENTURY THE HOUSTON CHRONICLE PRINTED AN ARTICLE BY THE US BUREAU CHIEF OF BRITAIN'S GUARDIAN NEWSPAPER THAT BLUNTLY JUDGED MR HISS INNOCENT AND CUDGELED RICHARD NIXON WHO HEADED THE 1948 PROBE INTO MR HISS'S COMMUNIST ACTIVITIES FOR HAVING AMASSED HIS ANTICOMMUNIST CREDENTIALS ON THE GOOD NAME OF A GUILTLESS MAN IT WAS OBVIOUS THE ARTICLE SAID THAT THE REPUBLIC WAS NEVER IN DANGER FROM THE ELEGANT DIPLOMAT SO PERFECTLY CAST AS A TRAITOR TO HIS OWN CLASS AND NATION THEN CAME THE PIECE DE RESISTANCE IT APPEARED IN THE NEW YORKER POLISHED AND BUFFED UNDER ITS NEW EDITOR TINA BROWN WHO RUSHED INTO PRINT MY FATHER'S HONOR A GLOWING TRIBUTE TO ALGER HISS WRITTEN BY THAT MOST JUDICIOUS OF AUTHORITIESHIS SON TONY THE YOUNGER HISS REVELED NATURALLY ENOUGH IN HIS FATHER'S SUPPOSED EXCULPATION A VERY PUBLIC HAPPY ENDING AND THEN GLEEFULLY DEFAMED WHITTAKER CHAMBERS DREDGING UP THE AGEOLD SLANDER THAT MR CHAMBERS WAS A SPURNED HOMOSEXUAL DRIVEN BY A DEEPLY INGRAINED NEED TO ACCUSE OTHERS AND WITNESS THEIR DESTRUCTION FOR GOOD MEASURE THE ARTICLE WAS ACCOMPANIED BY A RICHARD AVEDON PHOTOGRAPH OF ALGER HISS NOW ENSHRINED AMONG THE BEAUTIFUL PEOPLE AND THEN JUST AS THE CELEBRATION ROARED TOWARD ITS CLIMAX GEN VOLKOGONOV SUDDENLY EXECUTED HIS VOLTE FACE FIRST HE SENT HIS DEFENSIVE LETTER TO THE MOSCOW PAPER AND THEN IN THE TIMES HE WITHDREW HIS INITIAL TESTIMONY NOW HERE WAS A STORY AND ONE WAITED FOR IT TO DEVELOP IT NEVER DID THE TIMES WHICH HAD DEVOTED HALF A PAGE TO THE OCT 29 STORY COMPLETE WITH GIANT PHOTO AND FRONTPAGE TEASER CHURLISHLY TUCKED THE GENERAL'S RETRACTION IN A PLACE WHERE FEW READERS WOULD SEE IT ELSEWHERE ONE HEARD NOTHING THE GREAT HUMMING ENGINE HAD FALLEN EERILY SILENT THE HOUSTON CHRONICLE AT LAST LOOK HAD YET TO ISSUE AN APOLOGY TO RICHARD NIXON AND THERE IS NO WORD THAT MS BROWN HAS COMMISSIONED A TRIBUTE TO WHITTAKER CHAMBERS OR A REVALUATION OF THE GENERAL'S SWEEPING CLAIMS THE TRUTH ABOUT MR CHAMBERS IT WOULD APPEAR IS BEST LEFT UNSAID JUST AS GEN VOLKOGONOV'S SPURIOUS EXONERATION IS BEST LEFT UNCORRECTED BOTH UNDERMINE THE FANTASY OF ALGER HISS'S INNOCENCE THAT ENDURING ARTICLE OF LIBERAL FAITH IMPERVIOUS AS EVER TO MERE FACT DESPITE THE GUILTY VERDICT REACHED BY A JURY IN 1950 AND UPHELD BY EVERY HIGHER COURT INCLUDING THE SUPREME COURT DESPITE THE DEVASTATING ANALYSIS MADE BY ALLEN WEINSTEIN IN PERJURY 1978 DESPITE THE TESTIMONY OF NATHANIEL WEYL WHO BELONGED TO THE SAME COMMUNIST CELL AS MR HISS AND IS STILL ALIVE TO TELL THE TALE SHOULD ANY JOURNALISTS CARE TO CALL HIM THE STORY CONCLUDED AS FAR AS MOST PEOPLE ARE CONCERNED WITH THE HAPPY ENDING DESCRIBED BY TONY HISS ALGER HISS IS VINDICATED AND WE HAVE A HEROIC RUSSIAN GENERAL TO THANK AND YET IN A CURIOUS WAY THE GENERAL DID PERFORM A PUBLIC SERVICE HE REMINDED US BY HIS BLUNDERS OF THE BOTTOMLESS RESERVOIR OF SYMPATHY THAT STILL EXISTS IN OUR CULTURE FOR ALGER HISS NOT AMONG THE MAJORITY OF AMERICANS PERHAPS BUT AMONG THOSE WITH THE POWER TO SHAPE THE INFORMATION THE REST OF US DEPEND ON AS WE STRUGGLE TO SORT FACT FROM FICTION NO ONE UNDERSTOOD THIS BETTER THAN WHITTAKER CHAMBERS I SEEM TO SEE HE ONCE REMARKED THAT ALGER HISS HAS RETAINED A GREAT PART OF HIS ORIGINAL BASE IN THE COMMUNITY HE IS STILL ABLE TO MAKE THEM WORK FOR HIM TO MAKE THE PRESS PLAY HIS GAME AND THIS OUTRAGEOUS PERFORMANCE THIS PUBLIC VIOLATION IS PERMITTED AND ABETTED IN THE NAME OF TRUTH AND HONOR THOSE WORDS WERE WRITTEN IN 1956 THEY MIGHT HAVE BEEN WRITTEN YESTERDAY FOR THE OUTRAGE CONTINUES AND GIVES NO SIGN OF ABATING MR TANENHAUS IS WRITING A BIOGRAPHY OF WHITTAKER CHAMBERS WHICH WILL BE PUBLISHED BY RANDOM HOUSE 9301080119 930108 NATIONAL MEDICAL CASE SHOWS HOW LAX SOME INSURERS ARE IN FIGHTING FRAUD BY SONIA L NAZARIO STAFF REPORTER OF THE WALL STREET JOURNAL LAST SUMMER 10 LARGE INSURANCE COMPANIES FILED SUIT AGAINST NATIONAL MEDICAL ENTERPRISES INC CHARGING THAT A SUBSTANTIAL PORTION OF 1 BILLION THEY PAID OUT IN PSYCHIATRIC CLAIMS OVER SEVERAL YEARS WAS FOR SERVICES NOT NEEDED OR PROVIDED WHY DIDN'T THE INSURERS ACT SOONER IT APPEARS THAT HEALTH INSURANCE COMPANIES WITH SOME EXCEPTIONS ARE CONTENT TO PASS THE COST ASSOCIATED WITH FRAUD ALONG TO THEIR CUSTOMERS IN THE FORM OF HIGHER PREMIUMS LOUIS PARISI DIRECTOR OF THE NEW JERSEY INSURANCE DEPARTMENT FRAUD DIVISION TOLD A HOUSE SUBCOMMITTEE LAST YEAR LESS THAN 5 OF COMPLAINTS TO HIM COME FROM HEALTH INSURERS HE SAYS INSURANCE COMPANIES SAY IT IS TOUGH TO DETECT FRAUD MEDICAL CHARTS AND DIAGNOSES ARE EASILY ALTERED CONSUMERS DETACHED FROM THE PAYMENT PROCESS OFTEN DON'T SCRUTINIZE BILLS OR WON'T TURN WHISTLEBLOWER AT THE EXPENSE OF THEIR RELATIONSHIP WITH THEIR PHYSICIAN STATE LAWS NOW OFTEN REQUIRE INSURERS TO PAY BILLS IN AS LITTLE AS TWO WEEKS HAMPERING EFFORTS TO ROOT OUT FRAUD AND INVESTIGATE THE PRESSURE IS THERE TO JUST PAY THE CLAIM SAYS WILLIAM MAHON EXECUTIVE DIRECTOR OF THE NATIONAL HEALTH CARE ANTIFRAUD ASSOCIATION WHICH COMPRISES INSURERS AND PROSECUTING AGENCIES BUT HE ADDS OUR MEMBER COMPANIES WOULD NOT BE CONTENT TO PASS ALONG THECOST OF FRAUD WE ALL PAY FOR THAT IN RECENT YEARS INSURANCE COMPANIES HAVE BECOME MORE AGGRESSIVE IN PROSECUTING HEALTHCARE FRAUD CASES EVEN SHARING INFORMATION WITH COMPETITORS MR MAHON SAYS SUCH ACTIONS LED RECENTLY TO DETECTION OF A NEW YORK PLASTIC SURGEON WHO WAS BILLING FOR AN ABNORMALLY HIGH NUMBER OF SURGERIES MANY OF THEM ALLEGEDLY NEVER PERFORMED TO REPAIR EARLOBES RIPPED BY EARRINGS BLUE CROSS & BLUE SHIELD OF WISCONSIN IS SENDING INVESTIGATORS INTO HOSPITALS POSING AS PATIENTS BUT MANY SAY PART OF THE FAULT FOR HIGH FRAUD RATES LIES WITH HOW POORLY INSURANCE COMPANIES POLICE HEALTHCARE CLAIMS WORKERS WHO PROCESS CLAIMS OFTEN GET PAID BY VOLUME THIS GIVES THEM AN INCENTIVE TO LET QUESTIONS SLIDE SOME EVEN TAKE TO PLUGGING IN THINGS THAT MAKE THE CLAIMS FLY SAYS MR PARISI INSURERS SAY THEY DON'T SCRUTINIZE CLAIMS UNDER A CERTAIN DOLLAR AMOUNT UNTIL 1989 MOST BILLINGS FOR PSYCHIATRIC HOSPITALS WERE UNDER THE CUTOFF AND THEREFORE WEREN'T AUDITED SAYS MARY TRAVER VICE PRESIDENT AND GENERAL COUNSEL OF WISCONSIN BLUE CROSS INSURANCE AUDITORS OFTEN FAIL TO REQUEST NURSES' NOTES WHICH SOMETIMES CONTRADICT A DOCTOR'S CHART AND POINT TO FRAUD AETNA DISCOVERED IN LOOKING AT NATIONAL MEDICAL'S CLAIMS THAT THERE WAS OFTEN A BIG DIFFERENCE BETWEEN THE TWO SAYS JAMES GARCIA OF AETNA'S HEALTH INSURANCE TRACKING UNIT INSURANCE COMPANIES' FRAUD DETECTION SYSTEMS DON'T ASSESS A PATIENT'S TOTAL BILL INSTEAD DETERMINING WHETHER ONE PARTICULAR TREATMENT IS BILLED TOO OFTEN BUT PSYCHIATRIC PROVIDERS CAN USE MANY DIFFERENT CODES JUST FOR GROUP THERAPY THUS AETNA'S SYSTEM LET GO UNCHALLENGED ONE PATIENT'S BILL FOR 48 SESSIONS OF THERAPY IN A 24HOUR PERIOD SAYS MR GARCIA WHEN ROBERT F STUCKEY THE LATE MEDICAL DIRECTOR OF THE ALCOHOLISM UNIT AT NATIONAL MEDICAL'S FAIR OAKS HOSPITAL IN SUMMIT NJ INFORMED PRUDENTIAL INSURANCE CO OF POSSIBLE INSURANCE FRAUD AT FAIR OAKS THE INSURANCE EXECUTIVES MERELY LAUGHED SAYING THAT FOR THEM LARGE BILLS MEANT LARGE PREMIUMS AND BIG BONUSES DR STUCKEY TOLD GOVERNMENT INVESTIGATORS A PRUDENTIAL SPOKESMAN SAYS WHEN FRAUD IS ALLEGED WE ACTIVELY INVESTIGATE IT RUSSEL DURRETT THE FORMER CONTROLLER OF TWIN LAKES HOSPITAL IN DENTON TEXAS A NATIONAL MEDICAL FACILITY SAYS WE WOULD CRANK OUT BILLS OF BETWEEN 18000 AND 75000 AND WE WOULD NEVER SEE AN INSURANCE AUDITOR SEE RELATED ARTICLE ABIDING SUSPICION ALLEGATIONS OF FRAUD MALPRACTICE STILL HAUNT OPERATOR OF HOSPITALS NATIONAL MEDICAL PROFIT PUSH IS ALLEGED TO HAVE LED TO UNNEEDED TREATMENT CEO CALLS CHARGES UNFAIR WSJ JAN 8 1993 9301080118 930108 MARKETING & MEDIA GM UNIT'S DIRECTV OBTAINS ITS FIRST PROGRAM CONTRACTS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL HUGHES AIRCRAFT CO HAS LANDED THE FIRST TWO PROGRAMMING CONTRACTS FOR ITS DIRECT SATELLITETOHOME TV SERVICE SIGNING DEALS WITH THE DISNEY CHANNEL AND PARAMOUNT PICTURES' VIDEO DIVISION BUT WITH AS MANY AS 150 CHANNELS TO FILL THE DIRECTV UNIT OF HUGHES IS JUST GETTING STARTED ON THE MOST CRUCIAL PHASE OF THIS 500 MILLION VENTURE ULTIMATELY THE SERVICE WILL HAVE TO BE STRONG ENOUGH TO DRAW URBANAREA VIEWERS AWAY FROM CABLE SERVICES AND COMPEL ALL SUBSCRIBERS TO PAY 700 A HOUSEHOLD FOR A SATELLITE DISH AND DECODER THE LOS ANGELESBASED AEROSPACE UNIT OF GENERAL MOTORS CORP WHICH PLANS TO FORMALLY ANNOUNCE THE TWO CONTRACTS TODAY IS CONSTRUCTING TWO ADVANCED SATELLITES AND AN EARTH STATION IT HAS ARRANGED FOR A BILLING SYSTEM RURALAREA SERVICE TO AS MANY AS 12 MILLION HOMES AND PRODUCTION OF DECODERS AND 18INCH SIGNALRECEIVING DISHES WE HAVE PUT ALL THE INFRASTRUCTURE IN PLACE SAID EDDIE HARTENSTEIN PRESIDENT OF DIRECTV WHICH PLANS TO BE OPERATIONAL BY MARCH 1994 HOWEVER HE SAID A FAILURE TO LINE UP SUBSTANTIAL PROGRAMMING IN THE NEXT YEAR WOULD LEAVE HUGHES WITH A SYSTEM ALL DRESSED UP BUT WHAT ARE YOU GOING TO WATCH WITH TODAY'S ANNOUNCEMENT SUBSCRIBERS ARE AT LEAST ASSURED OF ACCESS TO THE DISNEY CHANNEL A UNIT OF WALT DISNEY CO OF BURBANK CALIF AND PAYPERVIEW MOVIES AVAILABLE THROUGH THE VIDEO DIVISION OF PARAMOUNT A UNIT OF PARAMOUNT COMMUNICATIONS INC OF NEW YORK DETAILS OF THE TRANSACTIONS WEREN'T DISCLOSED BUT MR HARTENSTEIN SAID DIRECTV WILL OFFER THE SAME DISNEY CHANNEL PROGRAMMING THAT IS AVAILABLE ON CABLE SYSTEMS HE SAID THE PARAMOUNT MOVIES WILL BE SHOWN ON A PAYPERVIEW BASIS AT LEAST 30 DAYS AFTER THEY BECOME AVAILABLE ON VIDEO AND WILL BE SHOWN EVERY 30 MINUTES ON A ROTATING BASIS WITHIN THE NEXT YEAR HUGHES MANAGERS HOPE TO SIGN PROGRAMMING CONTRACTS WITH 20 TO 30 CABLE PROGRAMMERS AND AS MANY AS SIX MAJOR MOTION PICTURE COMPANIES THEY ALSO HOPE TO ARRANGE FOR BROAD COVERAGE OF COLLEGE AND PROFESSIONAL SPORTS IN ADDITION TO SPECIALINTEREST PROGRAMMING RANGING IN VARIETY FROM DANCE INSTRUCTION TO TRAINING FOR MEDICAL PROFESSIONALS SUBSCRIBERS WOULD PAY EXTRA FOR ADDED SERVICES THEY WANT TO RECEIVE ADVANCEMENTS IN DIGITAL TECHNOLOGY ARE ALLOWING CABLE COMPANIES TO OFFER GREATER VARIETY IN PROGRAMMING BUT DIRECTV'S BIG EDGE OVER CABLE IS THAT IT CAN REACH ANY HOME IN THE COUNTRY BUT DOESN'T NEED TO SEND EVERY PROGRAM TO EVERY SUBSCRIBER THAT MEANS IT CAN ASSEMBLE NICHE AUDIENCES THAT MAKE SPECIAL PROGRAMMING POSSIBLE AND PROFITABLE HOWEVER THE VALUE OF THAT FLEXIBILITY REMAINS TO BE PROVEN THE ISSUE ISN'T WHETHER IT WILL ATTRACT SUBSCRIBERS SAID LARRY GERBRANDT A SENIOR ANALYST WITH PAUL KAGAN ASSOCIATES OF CARMEL CALIF IT'S HOW MANY AND HOW QUICKLY TO BE PROFITABLE HE SAID HUGHES WILL NEED SOMETHING MORE THAN METOO PROGRAMMING 9301080117 930108 BUSINESS BRIEF ALASKA AIR GROUP INC CHARGES TOTALING 22 MILLION ARE EXPECTED FOR 4TH QUARTER ALASKA AIR GROUP INC SEATTLE SAID IT WILL TAKE 22 MILLION IN CHARGES FOR THE FOURTH QUARTER TO REFLECT THE ACCELERATED RETIREMENT OF ITS BOEING 727 AIRCRAFT AND AN ACCOUNTING CHANGE THE CHARGES WILL ADD 166 A SHARE TO WHAT ANALYSTS EXPECT WILL BE A SIZABLE FOURTHQUARTER LOSS FOR THE CARRIER ALASKA AIR THE PARENT OF ALASKA AIRLINES HAS BEEN HURT BADLY BY INDUSTRYWIDE FARE WARS FOR THE FIRST NINE MONTHS OF 1992 ALASKA AIR HAD A NET LOSS OF 357 MILLION OR 306 A SHARE ON REVENUE OF 8564 MILLION ALASKA AIR'S SHARES WERE QUOTED AT 1725 UP 125 CENTS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE SEPARATELY STANDARD & POOR'S CORP SAID IT PUT 525 MILLION OF ALASKA AIR DEBT ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS MEANING THAT THE RATINGS AGENCY MAY DOWNGRADE THE DEBT S&P CITED THE COMPANY'S HEAVY LOSSES IN 1992 FOR THE ACTION 9301080115 930108 SECRETARY OF AGRICULTURE STARTS RETRENCHMENT EFFORT WASHINGTON SECRETARY EDWARD MADIGAN ANNOUNCED PLANS TO BEGIN CUTTING THE NUMBER OF AGRICULTURE DEPARTMENT FIELD OFFICES AS PART OF A MAJOR REORGANIZATION OF THE AGENCY THE INITIAL EFFORT WHICH HE INTENDS TO SET IN MOTION BEFORE THE CLINTON ADMINISTRATION TAKES OFFICE WILL DEAL WITH THE 7405 OFFICES THAT DELIVER FARM SERVICES AT THE COUNTY LEVEL IT IS PROJECTED TO REDUCE THE NUMBER OF THESE FIELDOFFICE LOCATIONS BY ABOUT 28 OR ABOUT 1000 LOCATIONS THE TOTAL NUMBER OF AGRICULTURE DEPARTMENT OFFICES IS 14309 AT A NEWS CONFERENCE SECRETARY MADIGAN ACKNOWLEDGED THAT THE CLINTON ADMINISTRATION COULD REVERSE ANY ORDERS HE ISSUES BUT HE NOTED THAT MR CLINTON HAS EXPRESSED SUPPORT FOR STREAMLINING THE FIELD OFFICE STRUCTURE CLINTON TRANSITION OFFICIALS YESTERDAY DECLINED COMMENT ON MR MADIGAN'S ACTION MR MADIGAN SAID HE WOULD RELEASE THE FINAL LIST OF OFFICES SLATED FOR CLOSING NEXT WEEK AFTER ALLOWING CONGRESSIONAL AND STATE OFFICIALS TO RAISE OBJECTIONS TO A TENTATIVE LIST THE DEPARTMENT HAS SENT THEM HE SAID OFFICES IN FAIRFIELD CONN AND BELL COUNTY KY HAVE MADE THE FINAL CLOSING LIST IN ADVANCE OF CONGRESSIONAL INPUT HOWEVER THE DEPARTMENT DOESN'T ANTICIPATE ANY LAYOFFS AS PART OF THE REDUCTIONS STAFFING LEVELS WILL BE REDUCED THROUGH ATTRITION SOME OF THE OFFICES COULD BE CLOSED IMMEDIATELY OTHERS WOULD BE CLOSED OVER 18 TO 24 MONTHS 9301080114 930108 ECONOMY RETAILERS REPORT SOLID SALES GAINS FOR DECEMBER STRONG HOLIDAY SPARKS RISE OF 7 TO 10 SIGNALING POSSIBLE STRENGTH IN '93 BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG RETAIL CHAINS POSTED HEALTHY DECEMBER SALES GAINS SOME ENJOYING THEIR BEST CHRISTMAS SEASON SINCE 1988 IN A FURTHER SIGN OF THE REBOUND IN CONSUMER SPENDING THE STRENGTH WE SAW IN DECEMBER CARRIED THROUGH THE WEEK AFTER CHRISTMAS WHICH REFLECTED GOOD SOLID CONSUMER SPENDING SAID JEFFREY EDELMAN AN ANALYST AT CJ LAWRENCE INC CONSUMERS ARE UNDOUBTEDLY NOT TAPPED OUT AFTER THEIR CHRISTMAS SPENDING SPREES WHICH BODES WELL FOR 1993 BUT SOME OTHER ANALYSTS DISAGREED SAYING THAT AFTER THEIR NOVEMBER AND DECEMBER SPENDING SPREES CONSUMERS ARE LIKELY TO CUT BACK ON SHOPPING FOR THE NEXT COUPLE OF MONTHS IN DECEMBER SALES GAINS AT RETAIL STORES OPEN FOR AT LEAST A YEAR RANGED FROM 7 TO 10 OVER DECEMBER 1991 LEVELS OR SLIGHTLY BETTER THAN ANALYSTS HAD EXPECTED REVERSING THE PATTERN OF RECENT YEARS WHERE BARGAIN HUNTERS FLOCKED TO DISCOUNTERS INSTEAD OF PRICIER STORES AT SHOPPING MALLS HOLIDAY SHOPPERS SPREAD THE BOUNTY ACROSS ALL RETAIL CHANNELS BUOYING SALES AT DEPARTMENT STORES SPECIALTY STORES AND DISCOUNTERS ALIKE DECEMBER WAS A GREAT MONTH SAID JEFFREY FEINER A RETAIL ANALYST AT SALOMON BROTHERS INC THIS YEAR RETAILERS GOT THE SALES WITHOUT THE EXTRAORDINARY SALES MARKDOWNS THAT THEY NEEDED IN PAST SEASONS WHICH MEANS THAT STORES ARE FINALLY LISTENING TO THE CONSUMER AND PROVIDING THE RIGHT MERCHANDISE AT GOOD VALUE INDUSTRY EXPERTS POINTED OUT THAT SHOPPERS SPENT STEADILY THROUGHOUT THE CHRISTMAS SEASON MORE THAN IN RECENT YEARS THEY SPLURGED ON DISCRETIONARY ITEMS SUCH AS CASHMERE SWEATERS HOME FURNISHINGS TOYS AND FASHION APPAREL BIG MALLS ATTRACTED RECORD CROWDS IN DECEMBER WHICH HELPED MANY DEPARTMENT STORES EXCEED THEIR SALES GOALS FOR EXAMPLE AT CINCINNATIBASED FEDERATED DEPARTMENT STORES INC SAMESTORE SALES JUMPED 10 FROM A YEAR EARLIER DECEMBER SALES WERE THE STRONGEST WE HAVE SEEN IN SEVERAL YEARS AND RESULTS RAN AHEAD OF EXPECTATIONS IN VIRTUALLY ALL AREAS OF OUR BUSINESS SAID ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE HE ADDED ALTHOUGH WE STILL EXPECT SOME COOLING OFF IN LEVELS OF CONSUMER ACTIVITY IN THE FIRST QUARTER OF 1993 OUR INVENTORIES ARE IN GOOD SHAPE AND THE MERCHANDISING AND OPERATIONAL STRATEGIES THAT SUPPORT OUR BUSINESS ARE WORKING ALL OF WHICH GIVES US REASON TO BE ENCOURAGED IN OUR OUTLOOK FOR THE COMING YEAR OTHER STRONG PERFORMANCES BY DEPARTMENT STORES INCLUDED MINNEAPOLISBASED DAYTON HUDSON CORP WHERE SAMESTORE SALES GREW 95 MAY DEPARTMENT STORES CO ST LOUIS WHERE SAMESTORE SALES CLIMBED 87 AND DALLASBASED JC PENNEY CO WHERE SAMESTORE SALES ROSE 91 AMONG SPECIALTY STORES COLUMBUS OHIOBASED LIMITED INC SHOWED SAMESTORE SALES GAINS OF 9 INCLUDING A 25 SALES JUMP FOR ITS EXPRESS DIVISION AT SAN FRANCISCOBASED GAP INC SAMESTORE SALES ROSE 5 THE NATION'S SECONDLARGEST RETAILER KMART CORP OF TROY MICH REGISTERED DECEMBER SAMESTORE SALES GAINS OF 24 THE INCREASE FELL SHORT OF THE COMPANY'S GOAL BUT KMART STILL HAD ITS MOST PROFITABLE CHRISTMAS SEASON EVER ACCORDING TO JOSEPH E ANTONINI KMART CHAIRMAN AND CHIEF EXECUTIVE WHILE SALES IN DECEMBER WERE AT AN ALLTIME HIGH THEY WERE SLIGHTLY UNDER PLAN REFLECTING REDUCED PROMOTIONAL ACTIVITY IN THE US KMART DIVISION MR ANTONINI SAID IN A STATEMENT HE PROJECTED THAT AFTER A ONETIME CHARGE KMART'S 1992 NET INCOME WILL EXCEED ITS 1991 EARNINGS OF 859 MILLION WITH 1992 EARNINGS PER SHARE EXPECTED TO COME IN AT AROUND 202 ABOUT THE SAME AS IN 1991 THE STRONG DECEMBER SHOWING WILL PRODUCE FOURTHQUARTER EARNINGS GAINS AT MANY RETAILERS IN THE RANGE OF 10 TO 15 OVER 1991 WHICH IN MANY CASES WILL BE THEIR BEST DECEMBER QUARTER IN FIVE YEARS ACCORDING TO SALOMON'S MR FEINER THIS IS A PERFECT ENVIRONMENT FOR STORES TO DO WELL BECAUSE PEOPLE ARE WILLING TO SPEND ON FASHION BUT STORES HAVE HAD TO BE SHARP ON PRICE TO GET THE SALES SAID ROBERT BUCHANAN AN ANALYST AT ALEX BROWN & SONS INC HE ADDED IT STILL REMAINS A TOUGH ENVIRONMENT BECAUSE THERE IS SUBSTANTIAL OVERCAPACITY TOO MANY STORES CHASING TOO FEW DOLLARS AND FOR THE LONG TERM THE RETAIL ENVIRONMENT WILL STILL REMAIN SLOW BECAUSE OF UNEMPLOYMENT HIGH DEBT LEVELS AND LOW SAVINGS LEVELS 9301080113 930108 PEPPER AND SALT IS ROCK 'N' ROLL IT'S EVERYWHERE THAT'S NOT ACCESSIBLE BY BOOMBOX WHILE MOST OF US JUST LEAVE DIVOTS TOMORROW MAY BE DYING 9301080112 930108 CERTAIN LIFE INSURERS PLAN RESERVES FOR REAL ESTATE LOSSES DUE TO NEW RULE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL GIANT POLICYHOLDEROWNED LIFE INSURANCE COMPANIES PLAN TO SET ASIDE BILLIONS OF DOLLARS IN COMING MONTHS TO COVER POTENTIAL LOSSES FROM REAL ESTATE HOLDINGS THE ACTIONS DO NOT SIGNIFY FURTHER DETERIORATION IN THE COMPANIES' REAL ESTATE HOLDINGS NOR WILL THEY SERIOUSLY WEAKEN THE COMPANIES' FINANCIAL STRENGTH RATHER THEY STEM FROM AN ACCOUNTING CHANGE THAT AFFECTS ALREADY IDENTIFIED PROBLEMS THE CHANGE WILL BRING THE INSURERS' RESERVES UP TO THE LEVELS ALREADY ESTABLISHED BY PUBLICLY TRADED INSURERS NEVERTHELESS THE ACTIONS PUT PRESSURE ON OTHER LIFE INSURANCE COMPANIES TO RECOGNIZE THEIR OWN REAL ESTATE PROBLEMS THERE ARE ONLY A FEW DOZEN POLICYHOLDEROWNED INSURERS BUT THEY REPRESENT THE MAJORITY OF LIFE INSURANCE ASSETS PRUDENTIAL INSURANCE CO OF AMERICA PLANS TO BOLSTER A NEW REAL ESTATE RESERVE POSITION BY 300 MILLION TEACHERS INSURANCE AND ANNUITY ASSOCIATION EXPECTS TO SET ASIDE 360 MILLION IMMEDIATELY BUILDING THAT RESERVE TO 1 BILLION BY THE END OF 1995 AND METROPOLITAN LIFE INSURANCE CO PLANS TO SHIFT ABOUT 1 BILLION OF ITS OVERALL RESERVES TO A MORE SPECIFIC REAL ESTATE ACCOUNT TO COVER ITS POTENTIAL LOSSES UNTIL RECENTLY ONLY PUBLICLY HELD INSURERS SUCH AS TRAVELERS CORP AND AETNA LIFE & CASUALTY CO HAVE HAD TO TAKE RESERVES TO COVER REAL ESTATE LOSSES THAT'S BECAUSE THEY ARE UNDER THE EYE OF THE SECURITIES AND EXCHANGE COMMISSION BUT NEW INSURANCE ACCOUNTING RULES FORCE ALL INSURERS TO MAKE PROVISIONS THE NEW RULES ESTABLISHED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS REQUIRE COMPANIES TO BUILD RESERVES TO A LEVEL DETERMINED BY A COMPLICATED FORMULA INSURERS HAVE SEVERAL YEARS TO BUILD THE RESERVE TO THEIR MINIMUM REQUIREMENT THE NEW RULES CAME IN RESPONSE TO CRITICISM THAT INSURANCE ACCOUNTING PRACTICES LET INSURERS HIDE LOSSES THE RULES ARE ALSO PART OF AN EFFORT TO WARD OFF FEDERAL REGULATION OF INSURANCE WHICH IS NOW OVERSEEN BY STATES IN ANTICIPATION OF THE NEW RULES SOME INSURERS BEGAN TO VOLUNTARILY PUT UP REAL ESTATE RESERVES IN 1991 IN THE CASE OF TEACHERS THE RESERVE POSITION IT IS ESTABLISHING INCLUDES SOME MONEY SET ASIDE LAST YEAR THAT WAS NOT SPECIFICALLY CALLED A RESERVE FOR REAL ESTATE THOMAS JONES CHIEF FINANCIAL OFFICER SAID THE COMPANY'S RESERVE IS MORE THAN FOUR TIMES THE MINIMUM REQUIRED BY REGULATORS MET AND PRUDENTIAL ARE ALSO GOING BEYOND THE MINIMUM REQUIREMENTS COMPANIES THAT HAVE THE FINANCIAL STRENGTH WILL GO BEYOND THE MINIMUM SAID LARRY MAYEWSKI A VICE PRESIDENT FOR AM BEST CO FOR OTHERS THE ABILITY TO GO BEYOND IT WILL BE DIFFICULT THE THREE COMPANIES HAVE REAL ESTATE PORTFOLIOS CONSISTING OF MORTGAGES AND PROPERTIES OF ABOUT 30 BILLION EACH EARNINGS WILL ABSORB THE CHARGES ASSOCIATED WITH SETTING UP RESERVES SO THE COMPANIES DO NOT EXPECT SUBSTANTIAL REDUCTIONS IN CAPITAL ALTHOUGH INSURERS HAVE BEGUN TO RECOGNIZE THEIR REAL ESTATE PROBLEMS OBSERVERS SAY THEIR EFFORTS STILL LAG BEHIND THE BANKING INDUSTRY ANOTHER BUSINESS THAT INVESTED HEAVILY IN REAL ESTATE BANKS HAVE RESERVED SUBSTANTIALLY MORE FOR ANTICIPATED REAL ESTATE LOSSES THAN INSURERS INSURERS SAY THEIR LOANS ARE PERFORMING BETTER THAN THOSE OF BANKS SO THEY DON'T NEED TO BUILD THE SAME SIZE RESERVES 9301080111 930108 SCHWAB TO POST 50 GAIN IN NET FOR 4TH PERIOD ESTIMATE SUGGESTS THAT '92 ENDED ON A HIGH NOTE FOR WALL STREET FIRMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHARLES SCHWAB CORP SAID FOURTHQUARTER PROFIT JUMPED ABOUT 50 FROM A YEAR AGO AND ITS ESTIMATE TRIGGERED A 12 JUMP IN ITS STOCK PRICE AND A POWERFUL RALLY IN BROKERAGE STOCKS SCHWAB THE US'S BIGGEST DISCOUNT BROKERAGE FIRM SAID IT EXPECTS TO REPORT NET INCOME OF 23 MILLION TO 24 MILLION OR 60 CENTS TO 63 CENTS A SHARE ON NET REVENUE OF ABOUT 190 MILLION THE RESULTS EXCEEDED ANALYSTS' EXPECTATIONS MANY OF WHOM WERE EXPECTING SCHWAB TO EARN ABOUT 50 CENTS A SHARE IN THE 1991 QUARTER NET WAS 16 MILLION OR 41 CENTS A SHARE ON REVENUE OF 167 MILLION THE INDIVIDUAL INVESTOR IS CLEARLY CONTINUING TO COME IN SAID CHARLES R SCHWAB CHAIRMAN AND CHIEF EXECUTIVE THEY'RE NOT HAPPY WITH THE RETURNS FROM BANKS OR MONEY MARKET ACCOUNTS HE ADDED THAT INVESTORS WERE BUYING STOCKS AND BONDS ACROSS THE BOARD IN THE FOURTH QUARTER AND THAT INVESTOR ACTIVITY THIS MONTH GENERALLY WAS ON PACE OR A LITTLE BIT HIGHER THAN OF DECEMBER THE SURGE AT SCHWAB CONSIDERED A GAUGE FOR THE ACTIVITY OF INDIVIDUAL INVESTORS SUGGESTED THAT THE BROKERAGE INDUSTRY ENDED 1992 ON A HIGH NOTE AND OFFERED HOPE FOR A CONTINUED BOOM ON WALL STREET THIS YEAR BROKERAGE FIRMS ARE EXPECTED TO POST RECORD PRETAX PROFIT FOR 1992 OF AS MUCH AS 7 BILLION ANALYSTS SAY SCHWAB'S STOCK SKYROCKETED 3 TO 28625 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY ON NEARLY SEVEN TIMES NORMAL VOLUME AND THE STOCKS OF OTHER BROKERS INCLUDING MERRILL LYNCH & CO PAINEWEBBER GROUP INC QUICK & REILLY GROUP INC AND MORGAN STANLEY GROUP INC SURGED IN ALL THE SECURITIES BROKERS PART OF THE DOW JONES EQUITY MARKET INDEX ROSE 11 EVEN AS THE BROADER MARKET INDEXES FELL FOR ALL OF 1992 SCHWAB EXPECTS TO POST RECORD NET OF MORE THAN 78 MILLION OR MORE THAN 2 A SHARE ON NET REVENUE OF MORE THAN 745 MILLION THAT WOULD COMPARE WITH 1991 NET OF 49 MILLION OR 127 A SHARE ON NET REVENUE OF 570 MILLION AVERAGE DAILY TRADING VOLUME BY SCHWAB CUSTOMERS WAS 27100 IN THE FOURTH QUARTER 36 HIGHER THAN THE 19900 IN THE YEAREARLIER PERIOD IN ALL OF 1992 AVERAGE DAILY TRADES WERE 24600 A 32 JUMP FROM THE 18600 AVERAGE DAILY TRADES IN 1991 DURING 1992 ASSETS IN SCHWAB CUSTOMER ACCOUNTS GREW 38 TO A RECORD 66 BILLION AND CUSTOMERS OPENED MORE THAN 560000 NEW ACCOUNTS A 46 JUMP FROM THOSE OPENED IN 1991 SCHWAB SAID IT PLANS TO OPEN ABOUT 20 BRANCHES THIS YEAR BRINGING ITS TOTAL TO NEARLY 200 INCLUDING ONE IN LONDON THIS MONTH SCHWAB'S RESULTS WILL MARK A SIGNIFICANT TURNAROUND FROM THE THIRD QUARTER WHEN TRADING ACTIVITY SHRIVELED AND EXPENSES SOARED IN THE FOURTH QUARTER SCHWAB SAYS IT TOOK STEPS TO REIN IN EXPENSES THIS INCLUDED CUTTING TELEVISION ADVERTISING SLASHING THE PAY OF SENIOR MANAGEMENT 10 AND INSTITUTING A HIRING FREEZE EXPENSES WERE ABOUT 147 MILLION SLIGHTLY HIGHER THAN 144 MILLION IN THE THIRD QUARTER BUT IF SOME COSTS HADN'T BEEN PARED EXPENSES WOULD HAVE TOTALED AS MUCH AS 160 MILLION SAID A JOHN GAMBS SCHWAB'S CHIEF FINANCIAL OFFICER SAID MR SCHWAB NO MUSCLE WAS CUT AT ALL IT'S NOT SO MUCH WHAT THEY'VE DONE WITH EXPENSES AS WHAT THEY WERE PREPARED TO DO HAD REVENUE NOT SOARED SAID MICHAEL FLANAGAN AN ANALYST AT LIPPER ANALYTICAL SECURITIES CORP NEW PRODUCTS THRIVE SCHWAB SAYS SOME OF ITS NEW PRODUCTS ARE THRIVING SCHWAB'S NOTRANSACTIONFEE MUTUAL FUNDS WHICH ALLOW INVESTORS TO TRADE MORE THAN 80 MUTUAL FUNDS BY EIGHT OUTSIDE FUND COMPANIES WITH NO LOAD OR SALES FEE HAS ATTRACTED MORE THAN 2 BILLION IN ASSETS SINCE BEING LAUNCHED IN JULY SCHWAB SAYS IT IS LIKELY TO ADD A FEW NEW FUND COMPANIES TO THE SERVICE THIS YEAR THOUGH IT DECLINED TO IDENTIFY THEM THE NEW MUTUALFUND SERVICE ISN'T YET A MONEY MAKER BUT IT CONTINUES TO DRAW NEW CUSTOMERS INTO SCHWAB'S FOLD WE NEED VOLUME TO MAKE THIS WORKSAID MR SCHWAB IT WILL BE VERY PROFITABLE FOR US IN A FEW YEARS SCHWAB ALSO PLANS TO LAUNCH SEVERAL ADDITIONAL PROPRIETARY OR INHOUSE MUTUAL FUNDS THIS YEAR THESE WILL INCLUDE AN INTERNATIONAL INDEX FUND THESE NEW PRODUCTS WILL HELP TO REDUCE SCHWAB'S HEAVY RELIANCE ON TRADING ACTIVITY FOR PROFITS TRADING WILL BECOME LESS AND LESS IMPORTANT TO OUR OVERALL GROWTH PICTURE SAID MR GAMBS MEANTIME SCHWAB'S RECORD YEAR WILL LEAD TO BIG PAY PACKAGES FOR ITS SENIOR EXECUTIVES MR SCHWAB IS EXPECTED TO RECEIVE A 1992 PAY PACKAGE OF ABOUT 32 MILLION INCLUDING 650000 IN SALARY AND 25 MILLION IN BONUS TIED TO THE FIRM'S PROFITABILITY SCHWAB OFFICIALS SAY MR SCHWAB MADE ABOUT 32 MILLION IN SALARY AND BONUS IN 1991 9301080110 930108 ECONOMY BROAD BUT MODERATE ECONOMIC GROWTH IN '93 IS SEEN BY COMMERCE DEPARTMENT BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US SHOULD EXPERIENCE A BROADBASED BUT MODERATE RECOVERY IN 1993 WITH HIGHTECH INDUSTRIES EXPECTED TO EXCEL WHILE AEROSPACE BUSINESSES LAG BEHIND THE COMMERCE DEPARTMENT SAID IN ITS ANNUAL INDUSTRIALOUTLOOK REPORT MOST SECTORS WILL ENJOY ECONOMIC GROWTH SAID ACTING UNDERSECRETARY TIMOTHY J HAUSER BUT THERE IS CONSIDERABLE VARIATION AMONG INDUSTRIES COMPUTERS WHICH BECAME HOT ITEMS IN LATE 1992 AS BUSINESSES STRUGGLED TO MAXIMIZE PRODUCTIVITY BEFORE MAKING NEW HIRES ARE EXPECTED TO HELP LEAD THE GROWTH IN THE MANUFACTURING SECTOR THIS YEAR ALONG WITH THE SEMICONDUCTOR INDUSTRY SEMICONDUCTOR SHIPMENTS SHOULD BE UP 12 AND COMPUTERS SHOULD BE UP 82 IN 1993 THE DEPARTMENT SAID THE MANUFACTURING ECONOMY AS A WHOLE IS EXPECTED TO EXPAND 27 IN 1993 COMPARED WITH AN ESTIMATED 22 LAST YEAR AND A DECLINE IN 1991 THE PROJECTIONS ARE COMPILED IN THE US INDUSTRIAL OUTLOOK 1993 A DETAILED ANALYSIS OF 350 MANUFACTURING AND SERVICE INDUSTRIES PLUS EMERGING HIGHTECHNOLOGY INDUSTRIES THESE BUSINESSES REPRESENT ROUGHLY 87 OF US ECONOMIC ACTIVITY ALONG WITH COMPUTERS AND SEMICONDUCTORS MEDICAL EQUIPMENT IS ALSO EXPECTED TO BE STRONG THE DURABLEGOODS SECTOR INCLUDING AUTOS SHOULD PERFORM WELL TOO THAT'S TYPICAL AFTER A RECESSION AS CONSUMERS BEGIN BUYING EXPENSIVE ITEMS THEY PUT OFF WHEN TIMES WERE TIGHT INDUSTRIAL MACHINERY AND METALWORKING EQUIPMENT ARE EXPECTED TO POST MOREMODEST GROWTH AND THE CONSTRUCTION SECTOR WILL REMAIN FAIRLY WEAK AEROSPACE INDUSTRIES WILL LIKELY BE THE SLOWESTMOVING IN 1993 AS THE DEFENSE INDUSTRY CONTINUES TO CONTRACT THE DEPARTMENT ESTIMATED THAT SHIPMENTS OF AIRCRAFT SPACEVEHICLE EQUIPMENT AND GUIDED MISSILES AND SPACE VEHICLES WILL EACH FALL OFF ROUGHLY 6 IN 1993 WHILE SERVICE PERFORMANCE IS HARD TO GAUGE BECAUSE OF DIFFERENCES IN THE MEASUREMENT OF OUTPUT THE DEPARTMENT SAID MANY SERVICE INDUSTRIES SHOULD DO WELL THAT COULD BE BAD NEWS FOR THE CONSUMER AS IT POINTS TO A CONTINUING RISE IN HEALTHCARE COSTS ASSUMING NO CHANGE IN HEALTHCARE LAWS AND PRACTICES THE DEPARTMENT LOOKS FOR THE HEALTH AND MEDICALSERVICES INDUSTRY AGAIN TO OUTPACE OTHER AREAS SURGING 12 IN OUTPUT EXPENDITURES ON HEALTH SERVICES WILL CONTINUE TO ACCELERATE FASTER THAN GROWTH IN GROSS DOMESTIC PRODUCT REGARDLESS OF EFFORTS TO CONTROL COSTS THE REPORT SAID THE MORECYCLICAL INDUSTRIES WITHIN THE SERVICE SECTOR ARE EXPECTED TO GROW AT A FASTER CLIP TOO PRERECORDED MUSIC HOME ENTERTAINMENT APPAREL STORES AND RESTAURANTS SHOULD ALL DO WELL ACCORDING TO THE REPORT THE STRONGER DOMESTIC GROWTH WILL UNDOUBTEDLY SPUR IMPORTS IN 1993 THAT SUGGESTS A WORSENING TRADE DEFICIT AS LACKLUSTER GROWTH OVERSEAS PARTICULARLY IN JAPAN AND GERMANY WILL HAMPER US EXPORTS HOWEVER THE COMMERCE DEPARTMENT SAID EXPORT GROWTH WILL PROBABLY BE THE SAME AS IN 1992 WITH MEXICO AND EAST ASIA BEING THE BRIGHT SPOTS HERE ARE THE MANUFACTURING INDUSTRIES EXPECTED TO SHOW THE FASTEST GROWTH AND DECLINES IN 1993 PERCENTAGE CHANGES ARE BASED ON SHIPMENTS AND EXCEPT AS NOTED ARE IN CONSTANT DOLLARS 9301080109 930108 LEISURE & ARTS ON SPORTS SUPER SEASON SUPER SUPER BOWL PLAYOFFS BY FREDERICK C KLEIN BUSY WITH BASKETBALL LAST SUNDAY I KEPT IN TOUCH WITH THE HOUSTONBUFFALO NATIONAL FOOTBALL LEAGUE PLAYOFF GAME BY RUMOR THE FIRST THING I HEARD WAS THAT HOUSTON WAS LEADING 353 EARLY IN THE SECOND HALF WHICH WAS CORRECT THE NEXT WAS THAT BUFFALO HAD SCORED 35 POINTS IN THE LAST QUARTER TO TIE THE SCORE AT 38 THIS WASN'T TRUE IT TOOK THE BILLS TWO QUARTERS TO TALLY THE 35 BUT THEY HAD INDEED PULLED EVEN THEN I WAS TOLD BUFFALO HAD WON ON A LASTSECOND FIELD GOAL THE TRUTH THAT THE FIELD GOAL CAME IN AN OVERTIME PERIOD AND WASN'T LASTSECOND MADE THE OUTCOME NO LESS ASTONISHING AS MY FRIEND SEYMOUR LIKES TO PUT IT IT WAS SO INCREDIBLE IT WAS UNBELIEVABLE MY POINT I GUESS IS THAT THIS SEASON'S NFL PLAYOFF TOURNAMENT IS SHAPING UP AS PARTICULARLY INTERESTING WELL WORTHY OF FIRSTHAND SCRUTINY THIS I WILL GIVE IT BEGINNING WITH THE WEEKEND'S QUARTERFINAL ROUND THE ENTIRE SEASON IN FACT HAS BEEN AN INTERESTING ONE FOR REASONS INCLUDING BUT NOT LIMITED TO THE FOLLOWING A CHANGING OF THE CHAMPIONSHIPCONTENDER GUARD WITH TWO OF THE BEST TEAMS OF THE PREVIOUS SEVERAL YEARS THE NEW YORK GIANTS AND CHICAGO BEARS IN STEEP DECLINE AND SOME YOUNGER CLUBS MOST NOTABLY THE DALLAS COWBOYS AND SAN DIEGO CHARGERS IN THE ASCENT THE ELIMINATION OF TELEVISION REPLAYS TO SECONDGUESS THE CALLS OF GAME OFFICIALS AFTER A SIXSEASON TRIAL A CONTINUATION OF THE INJURY PLAGUE THAT HAS TURNED RECENT CAMPAIGNS INTO AS MUCH SURVIVAL TESTS AS CONTESTS OF ATHLETIC SKILL THE APPARENT NEW LABOR AGREEMENT BRINGING FREE AGENCY TO LARGE NUMBERS OF PLAYERS MAKING THIS SEASON THE LAST OF ITS KIND THE ABSENCE OF INSTANTREPLAY REVIEW HAD THE MOST IMMEDIATE EFFECT ON NFL GAMES BUT NOT ONLY IN THE WAY MANY HAD FORECAST THE EXPECTATION HAD BEEN THAT THE END OF THE QUIXOTIC QUEST FOR PLAYINGFIELD PERFECTION WOULD SPEED PLAY MARKEDLY IT DID CONTRIBUTE TO SOME REDUCTION OF GAME TIME TO AN AVERAGE OF TWO HOURS 58 MINUTES FROM 302 LAST SEASON BUT ITS LARGEST IMPACT MIGHT HAVE COME IN ANOTHER AREA TOUCHDOWNS FROM RETURNS OF KICKOFFS PUNTS PASS INTERCEPTIONS AND FUMBLES EXCITING PLAYS ALL LEAPED TO 109 DURING THE JUSTCONCLUDED REGULAR SEASON FROM 80 IN 1991 AND 83 IN 1990 AND WHILE MORE AGGRESSIVE DEFENSES PLAYED A ROLE IN THAT IT'S BEEN SUGGESTED THAT THE CLOSING OF THE EYE IN THE SKY COULD HAVE TOO BY ELIMINATING OVERRULES ON QUICKBLINK CALLS LIKE WHETHER A FUMBLER WAS DOWN BEFORE THE BALL POPPED LOOSE IF THAT WAS SO AND IT MAKES SENSE TO ME THAT IT WAS IT'S ANOTHER EXCELLENT REASON TO KEEP THE TV EYE SHUT THE INJURY ISSUE HAS RECEIVED LOTS OF ATTENTION OF LATE BUT ASIDE FROM A FEW POSSIBLE RULES CHANGES SUCH AS LEGALIZING INTENTIONAL GROUNDING OF THE BALL BY QUARTERBACKS THEY DO IT ALL THE TIME ANYWAY IT SEEMS TO BE WITH US TO STAY SIMPLY PUT A TOOLONG SCHEDULE AND PLASTICGRASSOVERCONCRETE PLAYING FIELDS HAVE HELPED MAKE NFL FOOTBALL A VERY DANGEROUS GAME TO PLAY THE GRIDIRON CARNAGE ALSO IS A RESULT OF THE FACT THAT FOOTBALL PLAYERS ARE BIGGER STRONGER AND SWIFTER THAN THEY USED TO BE IN BASEBALL IMPROVEMENTS IN FITNESS AND PERFORMANCE TECHNIQUES HAVE WROUGHT BETTER PITCHING AND MORE BASEPATH SPEED IN BASKETBALL THEY'VE PRODUCED A SPECTACULAR ABOVETHERIM GAME ALAS IN FOOTBALL A COLLISION SPORT THEY'VE MOSTLY MEANT HARDER COLLISIONS THE ADVENT OF PLAYER FREE AGENCY AFTER MUCH TRAVAIL PROMISES SIGNIFICANT FUTURE CHANGE HISTORY INDICATES THAT NFL TEAM OWNERS WON'T BE AS BIDDINGMAD AS THEIR BASEBALL COUNTERPARTS BUT IT'LL TAKE ONLY A COUPLE OF AMBITIOUS MOGULS TO START ANTES RISING AND THE DECK COULD BE SHUFFLED CONSIDERABLY BY NEXT TERM FOR EXPERT COMMENTARY ON THE OUTCOME OF THE PLAYOFFS JUST AHEAD I CALLED ON CHUCK SIPPL HE'S ASSOCIATE EDITOR OF THE GOLD SHEET THE LOS ANGELESBASED SPORTSHANDICAPPING PUBLICATION THAT'S THE TIFFANY OF ITS TRADE IT'S BEEN IN BUSINESS FOR 36 YEARS NOW AGAINST A TYPICAL LIFE SPAN OF MAYBE 36 DAYS FOR ITS COMPETITORS SIPPL LIKES UNDERDOG BUFFALO OVER THE PITTSBURGH STEELERS IN SATURDAY'S AMERICAN CONFERENCE MATCH AND UNDERDOG SAN DIEGO OVER THE MIAMI DOLPHINS IN THE SUNDAY GO YES HE SAYS BUFFALO QUARTERBACK JIM KELLY PROBABLY WILL MISS THE GAME BECAUSE OF INJURIES BUT NEIL O'DONNELL THE STEELERS' BEST QB ALSO HAS BEEN HURT AND WHILE HE'S EXPECTED TO PLAY SUNDAY PITTSBURGH'S OFFENSE ISN'T DYNAMIC AT ITS BEST HE NOTES THAT BUFFALO A SUPER BOWL TEAM THE PAST TWO YEARS HAS A BIG EDGE OVER ITS RIVAL IN PLAYOFF EXPERIENCE AND SHOULD GET A BOOST FROM ITS EPIC TRIUMPH OVER HOUSTON LAST WEEK SAN DIEGOMIAMI HE SAYS MATCHES TEAMS HEADING IN OPPOSITE DIRECTIONS THE UPSTART CHARGERS HAVING SOARED FROM 04 IN THE WONLOST COLUMN TO 125 WHILE THE DOLPHINS WERE SINKING FROM 60 TO 115 THE DUE THEORY WHICH STATES THAT A TEAM ON A WINNING STREAK IS DUE TO LOSE IS NOT ONE TO WHICH HE SUBSCRIBES YOU CAN GET LOTS OF WINS STICKING WITH A HOT' TEAM BUT ONLY ONE LOSS WHEN THE STREAK ENDS HE POINTS OUT IN THE NATIONAL CONFERENCE GAMES HE THINKS THE SAN FRANCISCO 49ERS WILL BEAT THE WASHINGTON REDSKINS ON SATURDAY AND THE COWBOYS WILL DEFEAT THE PHILADELPHIA EAGLES ON SUNDAY HE SAYS THAT WHILE HE FINDS THE 9 1/2POINTUNDERDOG SKINS AN INTRIGUING BET HE THINKS THAT IN QUARTERBACK STEVE YOUNG RUNNERRECEIVER RICKY WATTERS AND RECEIVERS JERRY RICE AND JOHN TAYLOR THE 49ERS HAVE TOO MUCH OFFENSE FOR BANGEDUP WASHINGTON OR ANYONE ELSE HE CALLS THE COWBOYS THE LEAGUE'S BESTBALANCED TEAM AND SEES THEM BEATING THE EAGLES AND COVERING THE 6 1/2POINT SPREAD SIPPL LIKES THE 49ERS TO BEAT DALLAS IN THE NFC FINAL BUT WOULD BE TEMPTED TO BET ON THE COWBOYS IF THEY WERE MORE THAN THREEPOINT UNDERDOGS WHOEVER WINS THAT GAME SHOULD EASILY DEFEAT THE BUFFALOSAN DIEGO WINNER WHICH HE THINKS WOULD BE THE CHARGERS IT'S GOOD TO BE HOT BUT IT'S BETTER TO BE GOOD HE SAYS OF HIS SUPER BOWL SCENARIO WORDS TO LIVE BY 9301080108 930108 JUDGE BARS BUSH DISMISSAL OF POSTAL BOARD MEMBERS WASHINGTON A FEDERAL JUDGE ENJOINED PRESIDENT BUSH FROM FIRING FIVE OF THE POSTAL SERVICE'S NINE GOVERNORS AS HE HAD THREATENED ESCALATING A DISPUTE OVER THE AGENCY'S INDEPENDENCE THE JUSTICE DEPARTMENT MOVED QUICKLY IN FEDERAL APPEALS COURT HERE TO SEEK A REVERSAL OF THE JUDGE'S ORDER AT THE HEART OF THE DISPUTE IS A 1991 DECISION BY THE POSTAL RATE COMMISSION TO SCALE BACK THE SERVICE'S PROPOSAL TO BOOST THE FIRSTCLASS LETTER RATE TO 30 CENTS FROM 25 CENTS THE POSTAL SERVICE HAD ASKED THE JUSTICE DEPARTMENT WHICH USUALLY REPRESENTS FEDERAL AGENCIES IN COURT TO TAKE LEGAL ACTION AGAINST THE COMMISSION WHICH GRANTED ONLY A 29CENT RATE WHEN THE DEPARTMENT REFUSED TRYING INSTEAD TO RESOLVE THE DISPUTE OUT OF COURT THE BOARD FILED ITS OWN SUIT A MOVE THE DEPARTMENT SAYS IS PROHIBITED BY LAW MR BUSH THREATENED TO FIRE THE GOVERNORS IF THEY DIDN'T WITHDRAW THEIR SUIT IN SEEKING ITS INJUNCTION IN FEDERAL COURT HERE THE POSTAL SERVICE ASSERTED IT IS INDEPENDENT OF THE EXECUTIVE BRANCH ONE OF THE GOVERNORS WHO FILED THE SUIT JOHN N GRIESEMER SAID IT WAS DISTASTEFUL FOR ME TO TAKE THIS STAND BUT WE THOUGHT IT WAS THE ONLY ONE WE COULD MORALLY TAKE THE AGENCY'S BOARD WAS DIVIDED OVER WHETHER TO REFUSE MR BUSH'S ORDER HOWEVER AND FOUR OF THE GOVERNORS TOLD THE WHITE HOUSE THEY SUPPORTED THE PRESIDENT'S POSITION A DECISION ON THE APPEAL COULD COME AS EARLY AS TODAY 9301080107 930108 FTC TO HOLD FEB 5 MEETING ON MICROSOFT COMMISSION WILL DECIDE WHETHER IT WILL TAKE ANY ANTITRUST ACTIONS BY JOE DAVIDSON AND G PASCAL ZACHARY STAFF REPORTERS OF THE WALL STREET JOURNAL THE FEDERAL TRADE COMMISSION WILL MEET FEB 5 TO DECIDE WHAT ANTITRUST ACTION IF ANY IT WILL TAKE AGAINST MICROSOFT CORP THE WORLD'S LARGEST SUPPLIER OF COMPUTER SOFTWARE THE CASE IS THE COMPUTER INDUSTRY'S MOST CLOSELY WATCHED ANTITRUST INVESTIGATION SINCE THE FAILED ATTEMPT TO BREAK UP INTERNATIONAL BUSINESS MACHINES CORP BELEAGUERED SOFTWARE COMPETITORS ARE HOPING THE FTC WILL TAKE SOME ACTION TO HALT MICROSOFT'S RELENTLESS PUSH INTO DIFFERENT MARKET SEGMENTS SUCH AS DATABASE SALES AND OPERATING SYSTEMS FOR MORE POWERFUL COMPUTERS BUT INVESTORS AREN'T TAKING THE PROBE SERIOUSLY MICROSOFT'S STOCK HAS RISEN STEADILY IN RECENT MONTHS AND IS NEAR ITS 52WEEK HIGH THE FTC INVESTIGATION HAS DRAGGED ON FOR 2 1/2 YEARS AT THE FEBRUARY MEETING THE COMMISSIONERS ARE EXPECTED TO VOTE ON A STAFF RECOMMENDATION TO SEEK A FEDERAL COURT INJUNCTION AGAINST MICROSOFT BECAUSE OF ALLEGATIONS THAT THE REDMOND WASH COMPANY ENGAGES IN ILLEGAL SALES PRACTICES AND THAT ITS CONTROL OVER THE STANDARD OPERATING SYSTEM FOR PERSONAL COMPUTERS HAS ALLOWED IT TO UNFAIRLY DOMINATE COMPETITORS WHILE THE COMMISSION COULD ACCEPT THE INJUNCTION RECOMMENDATION OF STAFF LAWYERS OTHER AVENUES ALSO ARE AVAILABLE FOR EXAMPLE IT COULD PROHIBIT MICROSOFT DIVISIONS FROM SHARING INFORMATION WITH EACH OTHER THAT GIVES ONE DIVISION AN UNFAIR ADVANTAGE OVER COMPETITORS ALSO A CONSENT AGREEMENT COULD BE REACHED WITH MICROSOFT BEFORE THE CASE GOES TO COURT MICROSOFT LAWYERS HAVE BEEN IN REGULAR COMMUNICATION WITH THE FTC STAFF WHICH HAS ALSO HAD CONTACT WITH MICROSOFT'S COMPETITORS FINALLY THE FTC COULD DECIDE THAT NO ACTION AGAINST THE COMPANY IS NECESSARY PEOPLE FAMILIAR WITH THE INVESTIGATION SAY THE BREAKUP OF MICROSOFT IS NOT AMONG THE OPTIONS GIVEN BY THE STAFF TO THE COMMISSION AN INJUNCTION SIMPLY PROHIBITING CERTAIN SALES PRACTICES WOULD HARDLY PUT A DENT IN MICROSOFT'S GROWING HEGEMONY THE COMPANY COULD CHANGE THOSE SALES PRACTICES WITHOUT LOSING MUCH MOMENTUM INDUSTRY EXPERTS SAY MICROSOFT WHICH EARNED 11 BILLION IN ITS PAST FISCAL YEAR HAS DENIED ENGAGING IN ANY PRACTICES THAT VIOLATE ANTITRUST LAWS COMPANY OFFICIALS HAVE SAID THEY ARE COOPERATING WITH THE INVESTIGATION THEY WILL HAVE AN OPPORTUNITY TO PRESENT THEIR CASE TO THE COMMISSIONERS BEFORE THE FEBRUARY MEETING WHICH WILL BE CLOSED A RECENTLY COMPLETED 250PAGE REPORT FROM THE FTC'S BUREAU OF COMPETITION STAFF WHICH RECOMMENDED SEEKING AN INJUNCTION WAS JUST ONE OF FOUR OR FIVE STAFF MEMORANDA THE COMMISSIONERS WERE TO CONSIDER BEFORE MAKING A DECISION A RECOMMENDATION ALSO IS BEING SUBMITTED BY OFFICIALS OF THE FTC'S BUREAU OF ECONOMICS FOR EXAMPLE WHO AT TIMES SUGGEST LESSAGGRESSIVE ACTION AGAINST BUSINESS PRACTICES THAN DO THEIR COLLEAGUES AT THE BUREAU OF COMPETITION COMPLAINTS AGAINST MICROSOFT FOCUS ON THREE AREAS FIRST THE WAY THE COMPANY SELLS AND PRICES ITS DOS OPERATING SYSTEM WHICH IS A STANDARD PROGRAM CONTROLLING THE BASIC FUNCTIONS OF A PC DOS USUALLY COMES BUNDLED WITH NEW PCS AND PC MAKERS BUY THE PROGRAM DIRECTLY FROM MICROSOFT TO GAIN A DISCOUNT PC MAKERS OFTEN AGREE TO PAY A ROYALTY TO MICROSOFT ON EVERY MACHINE THEY SELL WHICH CRITICS SAY EFFECTIVELY MAKES IT UNECONOMIC FOR PC MAKERS TO BUY A DOS CLONE FROM NOVELL INC EVEN FOR PART OF ITS SHIPMENTS MICROSOFT HAS DEFENDED THE PRACTICE SAYING IT MAKES IT EASIER TO GUARD AGAINST PIRACY AND SAVES PC MAKERS MONEY THE SECOND AREA OF SCRUTINY INVOLVES TYING OR SELLING BOTH APPLICATIONS AND OPERATING SYSTEMS TOGETHER SUCH A SALES PRACTICE IS TECHNICALLY ILLEGAL WHEN IT INVOLVES A MONOPOLY PRODUCT SOME LAWYERS SAY MICROSOFT'S COMPETITORS HAVE TOLD FTC INVESTIGATORS ABOUT NUMEROUS INSTANCES SOME QUITE RECENT WHERE MICROSOFT OFFERS A CUTRATE PRICE ON ITS DOS OR WINDOWS SYSTEM SOFTWARE PROVIDED A CUSTOMER BUYS A LARGE QUANTITY OF WORDPROCESSING SPREADSHEET OR OTHER APPLICATIONS THE THIRD AREA OF MOST INTENSE CONCERN INVOLVES MICROSOFT'S ALLEGED PRACTICE OF FAVORING ITS OWN APPLICATIONS DEVELOPERS WHEN IT COMES TO DISTRIBUTING THE LATEST CHANGES OR PROPOSED CHANGES IN OPERATING SYSTEMS OPERATING SYSTEMS PROVIDE THE BASIC CONTEXT FOR AN APPLICATION SO THAT DELAYS IN RECEIVING INFORMATION ABOUT AN OPERATING SYSTEM RESULT IN DELAYS IN PRODUCING APPLICATIONS FOR IT MICROSOFT COMPETITORS HAVE TOLD THE FTC OF NUMEROUS INSTANCES WHERE IT APPEARS THAT THEY RECEIVED CRUCIAL INFORMATION ABOUT MICROSOFT'S FORTHCOMING NT OPERATING SYSTEM MONTHS AFTER MICROSOFT'S OWN APPLICATIONS DEVELOPERS AS A RESULT THEY SAY MICROSOFT HAS GAINED AN ADVANTAGE OVER THEM IN DELIVERING APPLICATIONS FOR NT WHOSE FIRST RELEASE IS EXPECTED NEXT YEAR EXECUTIVES WITH OTHER SOFTWARE COMPANIES REFUSED TO TALK ON THE RECORD ABOUT THEIR COMMUNICATIONS WITH THE FTC HOWEVER THEY INDICATED THAT THE COMMISSION HAS ASKED TO MEET WITH REPRESENTATIVES OF SEVERAL COMPANIES INCLUDING LOTUS DEVELOPMENT CORP EXECUTIVES FAMILIAR WITH THE FTC'S INVESTIGATION SAY IT IS SAFE TO SAY THAT THE COMMISSIONERS FACE A LAUNDRYLIST OF OPTIONS THESE INCLUDE EVERYTHING FROM MERELY ASKING MICROSOFT TO CHANGE THE WORDING OF ITS DOS CONTRACTS TO IMPOSING ON MICROSOFT A SCHEME THAT PREVENTS THE OPERATING SIDE OF ITS BUSINESS FROM COMMUNICATING FREELY WITH ITS APPLICATION SIDE 9301080106 930108 FIRE DESTROYS FOKKER PLANT AMSTERDAM FOKKER NV A DUTCH AIRCRAFT MAKER SAID A FIRE DESTROYED AN ASSEMBLY FACTORY AT ITS SPECIAL PRODUCTS PLANT IN HOOGEVEEN RESULTING IN DAMAGE VALUED AT TENS OF MILLIONS OF GUILDERS A DUTCH NEWS AGENCY SUGGESTED THAT THE LOSS OF THE FACTORY MIGHT SLOW PRODUCTION AT OTHER FOKKER FACTORIES A SPOKESWOMAN FOR FOKKER DECLINED TO COMMENT FOKKER SAID THE ASSEMBLY FACTORY MADE PARTS FOR FOKKER AIRPLANES AND FOR SALE TO THIRD PARTIES NO ONE WAS REPORTED INJURED IN THE FIRE THE COMPANY SAID FOKKER ADDED IT IS CURRENTLY ASSESSING MEASURES TO GET PRODUCTION BACK ON TRACK 9301080105 930108 YOUR MONEY MATTERS WEEKEND REPORT TEN LESSONS TO LEARN FROM WALL STREET'S PROS BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL MOST INDIVIDUAL INVESTORS PROBABLY DON'T FEEL MUCH AFFINITY WITH THE WALL STREET PROFESSIONALS WHO MANAGE MONEY FOR PENSION PLANS MUTUAL FUNDS AND THE LIKE AFTER ALL WHILE THE PROS ARE MAKING DECISIONS INVOLVING MILLIONS OF DOLLARS THE INDIVIDUAL'S BIG CHALLENGE IS USUALLY SOMETHING MORE LIKE DECIDING WHETHER TO MOVE 10000 FROM ONE MUTUAL FUND TO ANOTHER BUT WHETHER ONE HAS A FEW BUCKS OR A FEW BILLION TO INVEST MANY OF THE GUIDING PRINCIPLES ARE THE SAME INDIVIDUAL INVESTORS CAN LEARN SOME IMPORTANT LESSONS BY PAYING ATTENTION TO HOW THE BIGGEST PLAYERS APPROACH THE TASK FOR INSTANCE PENSION FUND EXECUTIVES TYPICALLY CONSTRUCT THEIR PORTFOLIOS FROM THE TOP BEGINNING WITH AN OVERALL INVESTMENT STRATEGY AND ASSET MIX TOO MANY INDIVIDUAL INVESTORS START AT THE BOTTOM SELECTING PARTICULAR SECURITIES THAT MAKES THEM VERY VULNERABLE TO PRODUCT SALES AND STORIES SAYS ROGER BRANSFORD PRESIDENT OF THE INSTITUTIONAL ASSET MANAGEMENT DIVISION OF STEIN ROE & FARNHAM IN CHICAGO EVEN THE BEST MUTUAL FUND MANAGERS AND OTHER PROFESSIONAL INVESTORS MAKE THEIR SHARE OF MISTAKES OF COURSE BUT INSTITUTIONAL INVESTORS TEND TO BE MORE DISCIPLINED THAN MOST INDIVIDUALS IN HAVING SPECIFIC CRITERIA FOR THE SECURITIES THEY BUY AND POLICIES ON WHEN TO SELL THOSE CONTROLS CAN REIN IN EMOTIONS THAT HURT INVESTMENT PERFORMANCE SUCH AS THE NATURAL RELUCTANCE TO ADMIT A STOCK IS A DISASTER OR TO PART WITH A LONGTIME WINNER THAT HAS LOST ITS EDGE PROFESSIONAL PORTFOLIO MANAGERS STILL HAVE EMOTIONS SAYS DOUGLAS M LOUDON A MANAGING DIRECTOR OF MONEY MANAGERS SCUDDER STEVENS & CLARK THEY JUST HAVE MORE TOOLS TO DEAL WITH THEM WHAT ARE THE MOST IMPORTANT LESSONS HERE ARE 10 BASIC STRATEGIES AND TECHNIQUES OF INSTITUTIONAL INVESTING THAT CAN HELP INDIVIDUALS BOOST THEIR RETURNS OR CUT THEIR RISKS PLAN FIRST THEN PICK INVESTMENTS PENSIONFUND SPONSORS TYPICALLY DESIGN THEIR PORTFOLIOS IN TWO DISTINCT STEPS THEY DECIDE HOW THEY WANT TO ALLOCATE MONEY AMONG BROAD CATEGORIES SUCH AS STOCKS BONDS REAL ESTATE AND CASH AND WITHIN THOSE AREAS MORE NARROWLY BETWEEN SAY BLUECHIP AND SMALLCOMPANY STOCKS THEN FOR EACH TYPE OF HOLDING THEY SELECT ONE OR MORE INVESTMENT MANAGERS INDIVIDUAL INVESTORS SHOULD ALSO WORK FROM AN OVERALL PLAN YOU HAVE TO HAVE SOME SORT OF ORGANIZATION SO YOU ARE NOT MAKING DECISIONS THAT ARE COUNTER TO YOUR OBJECTIVE SAYS EDWARD MATHIAS A MANAGING DIRECTOR OF T ROWE PRICE ASSOCIATES INC THE BIG BALTIMOREBASED MUTUAL FUND COMPANY MATCH INVESTMENTS WITH OBJECTIVES MANY INSTITUTIONS GEAR THEIR INVESTMENT SELECTIONS TO HOW SOON AND IN WHAT AMOUNTS THEY WILL HAVE TO PAY OUT CASH FOR INSTANCE PENSION PLANS KEEP SOME MONEY IN MONEYMARKET INSTRUMENTS TO MEET NEARTERM PAYMENTS TO CURRENT RETIREES THEY USE A MORE AGGRESSIVE MIX OF STOCKS AND BONDS FOR DOLLARS THAT WILL STAY INVESTED FOR DECADES INDIVIDUALS SHOULD MATCH THE ASSET WITH THE INVESTMENT OBJECTIVE SAYS WILLIAM REICHENSTEIN A FINANCE PROFESSOR AT BAYLOR UNIVERSITY IN WACO TEXAS GO WITH THE CERTAINTY OF CERTIFICATES OF DEPOSIT OR SHORTTERM BONDS IF MONEY IS SET ASIDE FOR A HOME DOWN PAYMENT IN TWO YEARS HE SAYS BUT TAKE MORE INVESTMENT RISK FOR RETIREMENT 30 YEARS HENCE CONSTRUCT A CORE PORTFOLIO FOR CONSISTENCY AND REDUCED COSTS MANY PENSION FUNDS HAVE DEVISED CORE PORTFOLIOS WITH WHICH THEY RARELY TINKER A POPULAR CHOICE STOCK AND BOND INDEX FUNDS THAT TRACK MARKET PERFORMANCE AT LOW COST INDIVIDUALS CAN SIMILARLY USE INDEX FUNDS OR A FEW GOOD ACTIVELY MANAGED FUNDS AS A CORE WHICH MIGHT MAKE UP 50 TO 75 OF THE PORTFOLIO DEFINING LONGTERM HOLDINGS CAN BE PARTICULARLY HELPFUL FOR PEOPLE WHO LIKE TO PLAY AROUND WITH PENNY STOCKS OR OTHER RISKY ASSETS SAYS WILLIAM G BRENNAN A FINANCIAL PLANNING SPECIALIST WITH ACCOUNTANTS ERNST & YOUNG IT GIVES YOU THE OPPORTUNITY TO SPECULATE WITHOUT RISKING YOUR ENTIRE FINANCIAL FUTURE THAT 21 IN EQUITIES IS A PROBLEM SAYS HEWITT CONSULTANT RONALD L KLOTTER YOU COULD RETIRE AND FIND YOU DON'T HAVE ENOUGH MONEY TO LIVE ON MOST PEOPLE INVESTING 401K MONEY OR OTHER RETIREMENT SAVINGS SHOULD MATCH THE PENSION PLANS' COMMITMENT TO STOCKS MR KLOTTER AND OTHER PROFESSIONALS SAY SURE THE STOCK MARKET'S UPS AND DOWNS CAN BE UNNERVING BUT OVER THE PAST SEVERAL DECADES STOCKS HAVE RETURNED ABOUT 10 A YEAR FAR AHEAD OF BOTH BONDS AND MONEYMARKET INSTRUMENTS DEVELOP A STOCKPICKING STYLE A SEASONED MONEY MANAGER HAS LEARNED WHAT WORKS FOR HIM OR HER SAYS JOHN CAMMACK A FINANCIAL PLANNER WITH T ROWE PRICE THAT APPROACH MIGHT BE LOOKING FOR CHEAP STOCKS OR ONES WITH RAPID EARNINGS GROWTH A LOT OF INDIVIDUALS DON'T HAVE A CLEAR STYLE FOR PICKING STOCKS HE SAYS BUT MIGHT DO WELL TO DEVELOP ONE MR LOUDON OF SCUDDER STEVENS SAYS HAVING A BASIC PHILOSOPHY GIVES INSTITUTIONAL INVESTORS A YARDSTICK AGAINST WHICH THEY CAN COMPARE EACH INVESTMENT THEY ARE THINKING OF MAKING WHILE INSTITUTIONAL INVESTORS USE VARIOUS VALUATION MODELS AND OTHER SOPHISTICATED TOOLS TO ANALYZE STOCKS HE SAYS YOU DON'T HAVE TO BE A ROCKET SCIENTIST TO DO SOME RESEARCH USING THE VALUE LINE INVESTMENT SURVEY AND OTHER RESOURCES FOCUS ON PROSPECTS NOT PAST RESULTS IN PICKING STOCKS PROFESSIONALS ARE ALMOST INDIFFERENT TO WHERE A STOCK HAS BEEN AND ENTIRELY FOCUSED ON WHERE THEY THINK IT CAN GO SAYS MICHAEL STOLPER WHOSE SAN DIEGO FIRM HELPS AFFLUENT INDIVIDUALS SELECT MONEY MANAGERS SOME INDIVIDUAL INVESTORS BY CONTRAST CONCLUDE THAT A STOCK IS A BARGAIN SIMPLY BECAUSE IT IS OFF SHARPLY FROM ITS HIGH IT MAY INSTEAD BE A TURKEY OR THEY ARE TOO QUICK TO ASSUME THAT A STOCK THAT HAS BEEN RISING STEADILY WILL CONTINUE ON THAT PATH SIMILARLY MR STOLPER SAYS MONEY MANAGERS SELL LOSING STOCKS MORE PROMPTLY THAN INDIVIDUALS BECAUSE THEY ACT WITH INDIFFERENCE TO WHAT THEY PAID MANY INDIVIDUALS ARE SIMPLY UNWILLING TO SELL AT A LOSS FORMULATE A STRATEGY FOR WHEN TO SELL DECIDING WHEN TO SELL A STOCK IS TOUGH FOR PROFESSIONALS AND AMATEURS ALIKE BUT PROFESSIONALS TYPICALLY GIVE MORE THOUGHT TO THEIR EXIT STRATEGY WHEN THEY BUY THEY KNOW WHAT THEIR TARGET IS TO SELL IT AND WHAT THEY WILL DO IF THINGS DON'T WORK OUT SAYS HUGH R LAMLE EXECUTIVE VICE PRESIDENT OF MONEY MANAGERS MD SASS INVESTORS SERVICES INC IN NEW YORK MR LAMLE SAYS SOME PROFESSIONALS HAVE A POLICY OF TAKING ONE OF TWO ACTIONS WHEN A STOCK FALLS 20 THEY EITHER DOUBLE THEIR INVESTMENT OR SELL THE STAKE IF YOU DON'T HAVE THE CONFIDENCE TO BUY MORE HE EXPLAINS THEN YOU OUGHT TO GET OUT DIVERSIFY INTO FOREIGN MARKETS LARGE CORPORATE PENSION PLANS HAVE ABOUT 10 OF THEIR ASSETS IN FOREIGN SECURITIES MOSTLY STOCKS ACCORDING TO FRANK RUSSELL CONSULTING MANY PROFESSIONALS SAY INDIVIDUALS SHOULD DO THE SAME YOU WANT TO DIVERSIFY AND TRY TO CAPTURE SOME OF THE POTENTIAL GAINS IN FOREIGN ECONOMIES SAYS PAUL C GUIDONE WHO MANAGES THE PENSION PLAN OF PRUDENTIAL INSURANCE CO OF AMERICA MOREOVER BECAUSE FOREIGN MARKETS MAY GO UP AND DOWN AT DIFFERENT TIMES THAN SIMILAR MOVES IN THE US INCLUDING SOME FOREIGN INVESTMENTS CAN REDUCE A PORTFOLIO'S PERFORMANCE SWINGS REVIEW HOLDINGS REGULARLY MOST INSTITUTIONS REVIEW THEIR PORTFOLIO HOLDINGS AND PERFORMANCE AT LEAST ONCE A QUARTER SOME PUNCH IT UP ON A COMPUTER DAILY WHEN INVESTMENT CONSULTANT IRWIN TEPPER ASKS HIS PENSIONFUND CLIENTS ABOUT THEIR PERFORMANCE HE SAYS THEY CAN TELL ME WHAT THEIR RATE OF RETURN HAS BEEN YEAR TO DATE WITHIN FIVE MINUTES OF MY QUESTION MOST INDIVIDUALS DON'T NEED SUCH EXACTITUDE CERTAINLY BUT SOME ERR IN RARELY REVIEWING THEIR ASSET ALLOCATION OR THE PERFORMANCE OF THEIR MUTUAL FUNDS A REGULAR QUARTERLY REVIEW SHOULD SUFFICE MONITOR RESULTS AGAINST PROPER BENCHMARKS SAY A PARTICULAR STOCK FUND'S TOTAL RETURN INCLUDING BOTH PRICE CHANGE AND REINVESTED DIVIDENDS MATCHED LAST YEAR'S 76 RETURN ON STANDARD & POOR'S 500STOCK INDEX A DECENT PERFORMANCE THAT DEPENDS IF THE MUTUAL FUND SPECIALIZES IN SMALL STOCKS FOR INSTANCE IT LAGGED BEHIND ITS PEERS THE TOTAL RETURN ON SMALL COMPANY GROWTH FUNDS AVERAGED 125 IN 1992 ACCORDING TO LIPPER ANALYTICAL SERVICES INC PENSION FUNDS REGULARLY MONITOR THE RELATIVE PERFORMANCE OF THE MONEY MANAGERS THEY HIRE AND INDIVIDUALS SHOULD DO THE SAME IN REVIEWING THEIR MUTUAL FUNDS BE SURE TO CONSIDER THE MANAGER'S INVESTING STYLE SAYS ROBERT MOSESON PRESIDENT OF CONSULTANTS PERFORMANCE ANALYTICS INC IN CHICAGO THE STOCK MARKET MAY BE FAVORING VALUE INVESTORS WHO LOOK FOR BARGAINPRICED STOCKS OR GROWTH INVESTORS WHO PICK COMPANIES WITH SURGING EARNINGS BY COMPARING A MANAGER ONLY TO THE BROAD MARKET MR MOSESON SAYS YOU TEND TO FIRE EXCELLENT MANAGERS AT THE TROUGH OF THEIR CYCLE 9301080104 930108 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WITH NEW DATA SHOWING GERMANY'S ECONOMIC SLIDE ACCELERATED LATE LAST YEAR ECONOMISTS WARNED OF A CRISIS IF POLICIES AREN'T CHANGED BUT GERMANY'S INFLATIONOBSESSED CENTRAL BANK YESTERDAY RESISTED PRESSURE TO LOOSEN ITS MONETARY REINS NEW ORDERS TO WESTERN GERMANY'S MANUFACTURING INDUSTRY IN NOVEMBER ADJUSTED FOR INFLATION AND SEASONAL FACTORS FELL 06 FROM OCTOBER THE EIGHTH CONSECUTIVE MONTHLY DECLINE AND PLUMMETED 105 FROM A YEAR EARLIER PARTLY REFLECTING HIGH INTEREST RATES AND PRODUCTION COSTS THE NUMBER OF WESTERN GERMAN UNEMPLOYED ROSE TO 2025468 IN DECEMBER FROM 1884629 IN NOVEMBER LIFTING THE JOBLESS RATE TO 74 FROM 69 WORKERS ON SHORTENED SHIFTS SURGED 36 TO 649583 FROM NOVEMBER AND 218 FROM SEPTEMBER EASTERN GERMAN UNEMPLOYMENT HELD STEADY AT 1100749 FOR A 135 RATE AFTER A POSTUNITY BOOM UNTIL MID1991 THE ECONOMY STALLED AND THEN BUCKLED IN THE 1992 THIRD QUARTER AS THIN EXPORT MARKETS AND PLUMMETING BUSINESS CONFIDENCE PUT INDUSTRY ON THE DEFENSIVE GERMANY'S WHITECOLLAR DAG UNION PART OF A GROUP THAT NEGOTIATES PUBLICSECTOR PAY SAID IT WOULD PRESS FOR A 55 INCREASE IN 1993 WAGES TALKS BEGIN TODAY FOR THE OETV UNION THE COUNTRY'S BIGGEST FOR GOVERNMENT EMPLOYEES WITH 23 MILLION MEMBERS WHICH WILL DEMAND A 5 PAY RISE THE GOVERNMENT WHICH IS THE NATION'S BIGGEST EMPLOYER WANTS TO CAP PUBLICSECTOR PAY BOOSTS AT 3 GOVERNMENT CONTRACTS SET THE PACE FOR TRADE UNIONS IN THE PRIVATE SECTOR LAND PRICES IN THE TOKYO METROPOLITAN AREA IN 1992 PLUNGED 20 FROM A YEAR EARLIER THE NATIONAL LAND AGENCY ESTIMATED PRICES ALSO FELL NATIONWIDE AFTER YEARS OF GALLOPING INCREASES THAT WERE JERKED TO A HALT WHEN THE SPECULATIVE BOOM OF THE LATE 1980S BURST MEANWHILE A MISAWA HOMES CO RESEARCH AFFILIATE SAID RESIDENTIAL LAND PRICES DROPPED FOR THE SECOND YEAR IN A ROW IN JAPAN'S BIGCITY REGIONS IT PUT THE TOKYO AREA DROP AT 15 FOLLOWING A 135 SLIDE IN 1991 PRICES HAVE FALLEN ENOUGH TO ALLOW FIRSTTIME HOME BUYERS TO AFFORD SITES NEAR CITIES AND AVOID HOURS OF COMMUTING DAILY ROMANIA PLANS TO SET UP A STOCK EXCHANGE IN PHASES AND A SUPERVISORY AGENCY WITH GUIDANCE FROM CANADIAN GOVERNMENT OFFICIALS AND CONSULTANTS THOUGH GLOBAL BANKERS SAID THE PROCESS COULD STUMBLE UNTIL BROKERAGE FIRMS ARE WELL ESTABLISHED IN THE FIRST PHASE PLANNED FOR THIS YEAR AN ADMINISTRATIVE AND INSTITUTIONAL FRAMEWORK WILL BE FORMED AND TRAINING CONDUCTED FOR WHAT IS INTENDED TO BE A COMPUTERIZED SECURITIES MARKET ROMANIA HAS BEGUN A PRIVATIZATION PROGRAM WHICH WOULD GENERATE SHARES TO BE TRADED TO PREPARE FOR A SPLIT OF CURRENCY IN THE CZECH REPUBLIC AND SLOVAKIA BANKS HAVE BEGUN APPLYING COUNTRY STAMPS TO THEIR COMMON PAPER MONEY AND CREATING CASH RESERVES THE FORMER CZECHOSLOVAKIA'S CROWN IS TO REMAIN THE COMMON CURRENCY ONLY UNTIL MIDYEAR THE CZECH GOVERNMENT HAS ORDERED NEW BANKNOTES TO BE PRINTED IN BRITAIN FOR CIRCULATION IN MAY THE OLD STAMPED CASH AND THE REPUBLICS' NEW MONEY MAY HAVE TO CIRCULATE SIMULTANEOUSLY FOR A WHILE OPTIMISTIC AFTER ITS AUSTERITY POLICIES COOLED AND STABILIZED THE ECONOMY INDONESIA PROPOSED A MILDLY EXPANSIONARY BUDGET FOR THE FIRST TIME IN YEARS THE PLAN FOR THE YEAR STARTING APRIL 1 CALLS FOR INFLATIONADJUSTED SPENDING INCREASES THOUGH PART OF THAT WOULD RAISE CIVILSERVICE SALARIES TO FIGHT CORRUPTION THE BUDGET ASSUMES INDONESIA WILL COLLECT MUCH MORE INCOME TAX RECEIVE SLIGHTLY LESS FOREIGN AID KEEP INFLATION TAMED LAST YEAR'S 49 RATE WAS A SEVENYEAR LOW AND HALF THE YEAREARLIER PACE AND CHALK UP ANOTHER STRONG ECONOMIC PERFORMANCE PARLIAMENT IS EXPECTED TO PASS THE 6232 TRILLION RUPIAH 3018 BILLION BUDGET UP 11 FROM SPENDING APPROVED FOR THE CURRENT YEAR AND A SIGNIFICANT RISE AT MORE THAN DOUBLE THE INFLATION RATE IN A BID TO DISCOURAGE ENERGY CONSUMPTION INDONESIA RAISED FUELPRODUCT PRICES 20 ON AVERAGE ELECTRICITY PRICES WILL RISE 13 ON FEB 1 AND SOME TRANSPORT FARES WILL BE INCREASED BY JAN 22 INCLUDING A 10 BOOST IN DOMESTIC AIR FARES HELSINKIVANTAA AIRPORT BUILT TO SERVE SIX MILLION PASSENGERS ANNUALLY BUT JAMMED WITH AS MANY AS EIGHT MILLION OPENED A NEW TERMINAL FOR AIR TRAVEL WITHIN FINLAND TO EASE CONGESTION AND SHORTEN CHECKIN TIMES VIETNAM'S PRIME MINISTER HAS ORDERED CIVIL SERVANTS TO STOP SMOKING FOREIGN CIGARETTES AND BANNED FOREIGN ALCOHOLIC BEVERAGES AT RECEPTIONS WARNING THAT SPENDING STATE MONEY ON IMPORTED LUXURIES COULD TEMPT OFFICIALS TO BECOME CORRUPT AND IMMORAL 9301080103 930108 REVIEW & OUTLOOK EDITORIAL RUDDERLESS VOYAGER IT WASN'T A GOOD WEEK FOR BOUTROS BOUTROSGHALI SARAJEVANS JEERED THE UN SECRETARYGENERAL WHEN HE VISITED BOSNIA THEN MARINES HAD TO RESCUE MR BOUTROSGHALI AFTER HIS ENTOURAGE'S WHITE CARS WERE STONED BY MOGADISHU DEMONSTRATORS BEARING SIGNS READING AN UNWANTED GUEST FINALLY 2000 STUDENTS IN ADDIS ABABA ROSE UP TO PROTEST HIS ARRIVAL ANGRY THAT HIS TRIP MIGHT ENCOURAGE THE ERITREAN FIGHT FOR INDEPENDENCE FOR THE INSTITUTION ITSELF THE COURSE OF EVENTS WAS EVEN WORSE IN IRAQ THE UN FORCES WORRIED ABOUT RENEWED HUMILIATION AFTER THE ALLIES HANDED SADDAM A FRESH ULTIMATUM TO REMOVE ANTIAIRCRAFT MISSILES FROM IRAQ'S NOFLY ZONE IN CAMBODIA SITE OF THE LARGEST UN PEACEKEEPING MISSION EVER PRINCE NORODOM SIHANOUK AND HIS SON THE MODERATES SHOWED THEIR DISAPPOINTMENT IN THE UN VENTURE BY ANNOUNCING THEY'D FOLLOW THE AWFUL KHMER ROUGE'S LEAD AND STOP COOPERATING WITH THE PEACE MISSION THERE AND OF COURSE IN YUGOSLAVIA THE SERBS AND CROATS CONTINUED TO FLOUT THE EFFORTS OF THE UN AND CYRUS VANCE TO SPIN PEACE FROM CHAOS AT THEIR RECTANGULAR NEGOTIATING TABLE WE OURSELVES EXPRESSED OPTIMISM ABOUT THE UN'S FUTURE ROLE AFTER THE IRAQ WAR BUT THE RECENT EVENTS SUGGEST THAT THE ORGANIZATION MAY BE GETTING THE CART BEFORE THE HORSE THE HORSE IS THE UNITED STATES WE DON'T SEE ANY OTHER HORSES ON THE TRACK THE UN'S RECEPTION IS HARDLY A SURPRISE THE BLUE HELMETS ARRIVE WITH AN UNCLEAR MANDATE IN CAPITALS TORN BY CHAOS WARRING FACTIONS PROMPTLY JUMP ON THE BODY'S REPRESENTATIVES WITH ALL THE GLEE AND ENERGY THAT FOURTHGRADERS PRODUCE WHEN GREETING THE ARRIVAL OF A SUBSTITUTE TEACHER THIS IS NOT TO SAY THAT THE UN IS WITHOUT PURPOSE PRESIDENT BUSH INCORPORATED IT WITH GREAT SUCCESS INTO HIS COALITION STRATEGIES FOR FIGHTING THE GULF WAR BUT NOW THAT WE'RE GETTING A GOOD LOOK AT THE KINDS OF ONTHEGROUND TROUBLES THAT THE GHOSTS OF THE POSTCOLD WAR WORLD ARE ABLE TO CONJURE IT'S BECOMING CLEARER THAT MULTILATERALISM ALONE CAN'T FIX THEM TAKE A MOMENT TO LOOK AT CAMBODIA WHERE THE UN'S PEACE MISSION IS CALLED UNTAC LONG MONTHS AROUND PARIS PEACE TABLES PRODUCED AN ARRANGEMENT THAT GAVE THE UN RESPONSIBILITY WITHOUT AUTHORITY THE AUTHORITY WENT TO ARMED GROUPS THAT INCLUDED THE GENOCIDAL KHMER ROUGE THE TROUBLE HERE IS REVEALING UNTAC HAS GONE TO GREAT LENGTHS NOT TO IMPINGE ON WHAT IT CONSIDERS TO BE CAMBODIAN SOVEREIGNTY BUT ARE THE RIGHTS OF SOVEREIGNTY HERE TRULY LIMITLESS MUST SOVEREIGNTY BE INTERPRETED IN WAYS THAT ENSURE PARALYSIS THE SECRETARYGENERAL HIMSELF SEEMED TO ACKNOWLEDGE THIS PROBLEM WHEN HE LAID OUT HIS THOUGHTS IN THE CURRENT ISSUE OF FOREIGN AFFAIRS MAGAZINE HE WROTE THAT A MAJOR INTELLECTUAL REQUIREMENT OF OUR TIME IS TO RETHINK THE PROBLEM OF SOVEREIGNTY NOT TO WEAKEN ITS ESSENCE WHICH IS CRUCIAL TO INTERNATIONAL SECURITY AND COOPERATION BUT TO RECOGNIZE IT MAY TAKE MORE THAN ONE FORM AND PERFORM MORE THAN ONE FUNCTION BUT THE SECRETARY DID NOT AND COULD NOT SET A GOAL FOR THE UN BEYOND PEACEKEEPING AS A POLICEMAN THE QUESTION IMMEDIATELY SUGGESTS ITSELF A POLICEMAN TO WHAT END THOUGH THE CLINTON PEOPLE SEEM RESENTFUL OF THE CONSTANT REFERENCES TO THE MANY CARTER RESUMES AMONG ITS FOREIGN POLICY TEAM THE MATTER IS ESPECIALLY RELEVANT IN LIGHT OF THE UN'S RECENT EFFORTS IF INDEED MR CLINTON'S OPERATIVES WERE TO SET AS THEIR MODEL THE CARTERITE PURSUIT OF PEACE VIA NEGOTIATIONS AS MESSRS BOUTROSGHALI AND VANCE ARE NOW DOING IN BOSNIA THE EFFORT IS DOOMED IT WILL MEET RESISTANCE FROM PEOPLE SUCH AS THE BOSNIANS WHO INTERPRET THIS PEACE AS A REQUEST FOR THEM TO GIVE UP BETTER THAT MR CLINTON SHOULD LISTEN TO THE SOMALIS IN THE STREETS WHO SAID THEY WANTED THEIR HELP TO COME FROM THE UNITED STATES WE TAKE THIS TO MEAN THE DIPLOMATIC MODEL THAT THEY WANT TO PARTICIPATE IN IS THE ONE USED SUCCESSFULLY FOR OPERATION DESERT STORM WITH THE UNITED STATES CLEARLY IN THE LEAD ROLE OF SETTING ACHIEVABLE GOALS AND THE UNITED NATIONS PROVIDING A BROAD BASE OF INTERNATIONAL SUPPORT FOR A WORTHY EFFORT LEFT TO ITS OWN DEVICES THE UN WILL ALWAYS BE A BIG EXPENSIVE RUDDERLESS BOAT WITHOUT THE US COMPASS IT IS HEADED FOR HUMILIATION WITHOUT END 9301080102 930108 THURSDAY'S MARKETS PLUNGE IN BOND PRICES SENDS STOCKS SKIDDING BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL BOND PRICES TUMBLED AS POSITIVE ECONOMIC NEWS RENEWED WORRIES OF RISING INTEREST RATES AND THE BOND MARKET'S PLUNGE CARRIED OVER TO STOCKS SETTING OFF A TIDAL WAVE OF SELLING THE DOLLAR ROSE AGAINST MOST OTHER MAJOR CURRENCIES THE BOND MARKET CERTAINLY HAS GONE INTO A NOSE DIVE SAID DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY IT MAY NOT BE A MAJOR NEGATIVE FOR THE STOCK MARKET BUT IT SURE IS PUTTING A DAMPER ON THINGS ANALYSTS SAID THE SELLOFF IN BONDS WAS SPARKED BY AN UNEXPECTEDLY LARGE DROP IN INITIAL JOBLESS CLAIMS FOR THE WEEK ENDED DEC 26 THE IMPROVEMENT IN THE JOB PICTURE SUGGESTS THAT THE ECONOMY IS GROWING FASTER THAN EXPECTED RAISING THE SPECTER OF HIGHER INFLATION THE DROP IN BOND PRICES ACCELERATED LATE IN THE AFTERNOON AS TRADERS BEGAN TO QUESTION PRESIDENTELECT CLINTON'S COMMITMENT TO CUTTING THE BUDGET DEFICIT NEWS REPORTS YESTERDAY SAID THAT BECAUSE OF A HIGHERTHANEXPECTED DEFICIT LEFT OVER FROM THE BUSH ADMINISTRATION MR CLINTON MAY HAVE TO MOVE SLOWER ON DEFICIT REDUCTION IT'S A QUESTION OF CONFIDENCE HERE SAID BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY THE MARKET WAS ENTHUSIASTIC THAT CLINTON WAS GOING TO MOVE THE DEFICIT UP TO A PRIORITY ITEM NOW HE'S NOT EVEN INAUGURATED AND HE'S ALREADY BACKING OFF OF THAT MR WIEN ADDED THAT THE SELLOFF IN STOCKS WAS SO PRONOUNCED YESTERDAY BECAUSE PRICES HAVE CLIMBED CONSIDERABLY IN RECENT MONTHS USING MOST VALUATION MEASURES THE MARKET IS FULLY PRICED AND WHEN IT'S FULLY PRICED THE ABILITY TO WITHSTAND THESE SETBACKS ISN'T AS STRONG HE SAID ANALYSTS ALSO SAID THEY ARE BECOMING CONCERNED ABOUT THE RISING VOLUME OF STOCK TRADING THE HIGH TURNOVER IN RECENT WEEKS HIGHLIGHTS THE GROWING LEVEL OF INDECISION AMONG INVESTORS SOME OF WHOM ARE BUYING IN FEAR OF MISSING FURTHER GAINS WHILE OTHERS ARE DUMPING POORLY PERFORMING SHARES THE CHURNING IS CHARACTERISTIC OF THE FORMATION OF A SIGNIFICANT TOP IN THE MARKET SAID JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO BUT I THINK THE TOP WON'T COME UNTIL FEBRUARY OR MARCH AND WILL PARTICULARLY AFFECT SMALL AND MIDCAP STOCKS THE DOLLAR'S REACTION TO THE DEBACLE IN OTHER US FINANCIAL MARKETS WAS MUTED BUT ABROAD GERMANY'S BUNDESBANK TOOK A FURTHER STEP TO SHORE UP EUROPE'S FALTERING MONETARY SYSTEM BY LOWERING A SHORTTERM INTEREST RATE THE BUNDESBANK CONTRIBUTED TO A STRENGTHENING OF THE FRENCH FRANC WHICH HAD BEEN UNDER SEVERE SELLING PRESSURE EARLIER THIS WEEK IT ALSO GAVE BELGIUM THE NETHERLANDS AND SWITZERLAND ROOM TO REDUCE THEIR OWN MARKET RATES A BIT WITHIN EUROPE'S EXCHANGE RATE MECHANISM HOWEVER SPECULATORS CONTINUED TO BEAT ON THE IRISH POUND OR PUNT TO SUPPORT ITS BELEAGUERED CURRENCY IRELAND'S CENTRAL BANK RAISED OVERNIGHT INTEREST RATES TO 100 FROM 50 EFFECTIVE TODAY ONLY ONE DAY AFTER THEY HAD BEEN RAISED TO 50 FROM 14 TRADERS ALSO SAID THAT THE BELGIAN AND DUTCH CENTRAL BANKS REPEATEDLY INTERVENED TO BOLSTER THE PUNT SOME TRADERS INTERPRETED YESTERDAY'S BUNDESBANK'S MOVE AS A PRECURSOR OF LOWER GERMAN RATES A LOT OF PEOPLE REALLY EXPECT THAT THE GERMANS WILL LOWER OFFICIAL INTEREST RATES OVER THE NEXT WEEK OR TWO IT WON'T NECESSARILY BE A BIG CUT BUT A SIGNAL TO THE MARKET THAT THE TREND IS DOWNWARD SAID CHRISTOPH BENZ A TRADER AT BANK JULIUS BAER & CO IN NEW YORK THE PRESSURE IS ON THE GERMANS TO LOWER INTERESTS TO KEEP THE WHOLE EUROPEAN EXCHANGE RATE MECHANISM INTACT IF THE FRENCH FRANC IS NOW FORCED TO DEVALUE AGAINST THE MARK OR DROP OUT OF THE ERM MANY ANALYSTS CONTEND THAT THE ERM WILL BE REDUCED TO A MEANINGLESS GROUPING OF THE MARK PLUS THE CURRENCIES OF A FEW SMALLER EUROPEAN COUNTRIES MEANWHILE MANY TRADERS STILL EXPECT THE DOLLAR TO RISE FURTHER THE EMPLOYMENT PICTURE LOOKS VERY GOOD OVER HERE THE DOLLAR LOOKS VERY WELL SUPPORTED AND LONGTERM INVESTORS HAVE STARTED TO BUY DOLLARS SAID MR BENZ WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK MARKET INDEX DECLINED 046 TO 9164 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 3031 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1158 ISSUES FELL AND 735 ROSE BOND PRICES DECLINED THE 1 1/8POINT DROP IN THE TREASURY'S BENCHMARK 30YEAR ISSUE BROUGHT THE YIELD UP TO 744 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16370 MARKS AND 12515 YEN COMPARED WITH 16340 MARKS AND 12515 YEN WEDNESDAY 9301080101 930108 LEISURE & ARTS BOOKSHELF MONEY WON'T SOLVE HIS PROBLEMS BY RAYMOND DOMANICO JOSEPH A FERNANDEZ HEAD OF THE NEW YORK CITY SCHOOLS HAS DONE WELL IN HIS CHOSEN CAREER AS HE TELLS US IN TALES OUT OF SCHOOL JOSEPH FERNANDEZ'S CRUSADE TO RESCUE AMERICAN EDUCATION LITTLE BROWN 336 PAGES 2495 COAUTHORED BY JOHN UNDERWOOD HIS FIRST TEACHING JOB IN THE DADE COUNTY PUBLIC SCHOOL SYSTEM PAID 4500 A YEAR NOW I'M MAKING ALMOST FIFTY TIMES THAT NOT BAD FOR A SELFDESCRIBED REDEEMED DROPOUT FROM SPANISH HARLEM BUT AS READERS OF CURRENT HEADLINES KNOW SUCCESS AS A BIGCITY SCHOOL SUPERINTENDENT CAN BE A FLEETING THING MR FERNANDEZ HAS LATELY COME UNDER HEAVY FIRE FOR PROMOTING A MULTICULTURAL CURRICULUM THAT ATTEMPTS TO TEACH RESPECT FOR HOMOSEXUAL LIFESTYLES IN THE FIRST GRADE AND FOR TACTLESS COMMENTS ABOUT THE NEW YORK CITY BOARD OF EDUCATION IN THIS BIOGRAPHY THE CURRENT BETTING IS THAT HE WILL LEAVE WHEN HIS CONTRACT EXPIRES IN JUNE THE CASUAL READER OF THIS BOOK MAY WONDER HOW AN INITIALLY POPULAR REFORMMINDED ADMINISTRATOR LIKE MR FERNANDEZ COULD HAVE GOTTEN TRIPPED UP SO SOON A MORE CAREFUL READER WILL CONCLUDE THAT THE SAME BUREAUCRATIC FORCES THAT BROUGHT HIM TO POWER ENSURED HIS EVENTUAL FAILURE THROUGH ADEPT BUREAUCRATIC INFIGHTING MR FERNANDEZ ROSE TO THE JOB OF DADE COUNTY SCHOOL SUPERINTENDENT HE IDENTIFIED HIMSELF WITH ONE BRAND OF SCHOOL REFORM PUMPING MONEY INTO SCHOOLS WHILE SHIFTING AT LEAST THE APPEARANCE OF POWER TO THOSE WHO RUN THEM HIS CROWNING ACHIEVEMENTS THERE CONSISTED OF PUTTING IN WHAT IS KNOWN AS SCHOOLBASED MANAGEMENT BUT WITHOUT ELIMINATING THE CENTRAL BUREAUCRACY IT WAS PRESUMABLY SUPPOSED TO REPLACE AT THE SAME TIME HE SECURED PASSAGE OF A 980 MILLION SCHOOLCONSTRUCTION BOND WHILE PROFESSIONALIZING TEACHERS THROUGH A GENEROUS LABOR SETTLEMENT THAT RAISED SALARIES 28 OVER THREE YEARS LITTLE MORE THAN TWO YEARS INTO HIS TENURE IN THE TOP DADE JOB HE WAS TAPPED TO HEAD THE NEW YORK SYSTEM THE NATION'S LARGEST THE SELECTION PROCESS CLOSED AND TIGHTLY CONTROLLED WAS REVEALING IN ITSELF THE PRESIDENT OF THE NEW YORK SCHOOL BOARD AND THE HEAD OF A SEARCH TEAM FLEW DOWN TO MIAMI TO MEET MR FERNANDEZ AT A SITE ARRANGED BY THE HEAD OF THE DADE COUNTY TEACHERS' UNION IN CONCERT WITH THE NEW YORK CITY TEACHERS' UNION THESE TWO THEN RALLIED THE SUPPORT OF A NEW YORK SCHOOL BOARD IN THE LAST YEAR OF ITS TENURE PUSHING THROUGH A LUCRATIVE CONTRACT FOR THE NEW CHANCELLOR AND ENSURING THAT HE WOULD GET TO SERVE FOR AT LEAST THREE YEARS AFTER THE NEWLY ELECTED BOARD MEMBERS WERE SEATED THE HEAD OF THE SEARCH TEAM BECAME MR FERNANDEZ'S TOP DEPUTY THE NEWLY ELECTED SCHOOL BOARD MEMBERS HAD IDEAS OF THEIR OWN AND MR FERNANDEZ ACCUSES THEM OF MEDDLING IN AND SABOTAGING HIS REFORM PLANS THOUGH IN FACT HE IS NOT INTERESTED IN CHANGING THE SYSTEM JUST IN TINKERING AND FUNDING IT BETTER THE BIG BLOWUPS HAVE COME OVER TWO UNRELATED SOCIAL ISSUES CONDOM DISTRIBUTION AND THE MULTICULTURAL CHILDREN OF THE RAINBOW CURRICULUM WHICH INTRODUCES YOUNGSTERS TO GAY AND LESBIAN LIFESTYLES AT A LUDICROUSLY EARLY AGE ON THESE ISSUES IT HAS BEEN MR FERNANDEZ NOT THE BOARD MEMBERS WHO HAS BEEN OUT OF TOUCH WITH WHAT MOST POOR AND WORKINGCLASS PARENTS WANT FOR THEIR CHILDREN IN THEIR NEIGHBORHOODS THE ISSUES OF IMPORTANCE ARE CRUMBLING OVERCROWDED SCHOOLS THE SAFETY OF STUDENTS AND EDUCATORS WITHIN THOSE BUILDINGS AND ACADEMIC ACHIEVEMENT READERS LOOKING FOR DETAILS AS TO HOW MR FERNANDEZ BELIEVES WE OR HE CAN RESCUE AMERICAN EDUCATION WILL BE DISAPPOINTED BY THIS BOOK HIS SPENDANDDECENTRALIZE REFORM PROGRAM IS SIMPLE ENOUGH TO UNDERSTAND AND HE TELLS US THAT HE BELIEVES STRONGLY IN ITS EFFICACY YET HE HEDGES HIS BETS ON THE OUTCOME OF HIS FLORIDA EFFORT TELLING US THAT REFORMS THERE ARE WILTING ON THE VINE BECAUSE HIS SUCCESSORS DO NOT SHARE HIS VIEWS PERHAPS HIS INITIATIVES MIGHT HAVE STUCK HAD HE DONE AWAY WITH THE CENTRAL BUREAUCRACY ITSELF IN FACT THE BOOK HINTS AT AN AWARENESS OF THIS POSSIBILITY BUT HOW COULD A MAN WHO OWES HIS RISE TO THE CENTRAL ADMINISTRATION THEN TURN AROUND AND ELIMINATE IT IN THE FINAL ANALYSIS MR FERNANDEZ'S STORY DOES OFFER A LESSON FOR THOSE INTERESTED IN EDUCATIONAL REFORM BUT NOT THE LESSON HE WOULD HAVE US DRAW RATHER IT SHOWS THE FOLLY OF EXPECTING OUR SCHOOLS TO BE CURED MERELY BY BRINGING IN STRONG LEADERSHIP FIGURES EVEN POLITICALLY SKILLED CHIEFS CANNOT GO ON FOREVER PAPERING OVER THE CONFLICT BETWEEN THE INTERESTS OF PARENTS AND THOSE OF A BUREAUCRACY DRIVEN BY FADS IDEOLOGIES PRESSURE GROUPS AND THE NEED TO JUSTIFY ITS EXISTENCE BY NOW MR FERNANDEZ IS REDUCED TO ARGUING THAT IF ONLY HE HAD MORE POWER AND MORE MONEY ALL WOULD BE WELL IT CAN GET HARD TO TELL THE REFORMERS FROM THOSE IN NEED OF REFORM MR DOMANICO IS DIRECTOR OF THE MANHATTAN INSTITUTE'S CENTER FOR EDUCATIONAL INNOVATION 9301080100 930108 CREDIT RATINGS COMMONWEALTH EDISON CO CHICAGO STANDARD & POOR'S CORP LOWERED ITS RATINGS ON THIS UTILITY'S SENIOR SECURED DEBT TO TRIPLEB FROM TRIPLEBPLUS AND SENIOR UNSECURED DEBT TO TRIPLEBMINUS FROM TRIPLEB THE TRIPLEBMINUS PREFERRED AND PREFERENCE STOCK AND A2 COMMERCIAL PAPER RATINGS ARE AFFIRMED ALL RATINGS WERE REMOVED FROM CREDITWATCH S&P SAID ABOUT 86 BILLION OF DEBT AND 800 MILLION OF PREFERRED AND PREFERENCE STOCK ARE OUTSTANDING THE RATINGS CONCERN SAID THE ACTION REFLECTS THE ILLINOIS COMMERCE COMMISSION'S ORDER EARLIER THIS WEEK CALLING FOR THE COMPANY TO REFUND ABOUT 600 MILLION AS PART OF AN ELECTRICITY RATE REDUCTION THAT SHOULD FURTHER SAP THE FINANCES OF THE NATION'S BIGGEST NUCLEAR UTILITY S&P SAID THE RATE CUT AND REFUND WILL IMPAIR THE COMPANY'S CASH FLOW POSITION CAPITAL STRUCTURE BALANCE AND ALREADY SUBPAR EARNINGS IT SAID THAT ALTHOUGH THE COMPANY HOPES TO OBTAIN A STAY OF THE RULING THE REFUND LIABILITY WILL REMAIN AS WILL THE REGULATORY DIFFICULTIES IN THE STATE DESPITE THE FIRM'S EFFORTS TO CONTROL SPENDING AND CONSERVE CASH ADDITIONAL STEPS MAY BE NECESSARY TO STEM FURTHER FINANCIAL EROSION S&P SAID A COMPANY SPOKESMAN SAID WE'RE NOT SURPRISED BY S&P'S MOVES BASED ON THE COMMISSION'S ACTION 9301080099 930108 ABIDING SUSPICION ALLEGATIONS OF FRAUD MALPRACTICE STILL HAUNT OPERATOR OF HOSPITALS NATIONAL MEDICAL PROFIT PUSH IS ALLEGED TO HAVE LED TO UNNEEDED TREATMENT CEO CALLS CHARGES UNFAIR BY SONIA L NAZARIO STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF RICHARD K EAMER IS DISCOVERING IT ISN'T EASY TO BOUNCE BACK FROM SCANDAL EVER SINCE EVIDENCE EMERGED 16 MONTHS AGO OF INSURANCE FRAUD AND PATIENT EXPLOITATION AT SOME OF HIS COMPANY'S PSYCHIATRIC HOSPITALS MR EAMER HAS WORKED OVERTIME TRYING TO RESTORE FAITH IN NATIONAL MEDICAL ENTERPRISES INC A 4 BILLIONAYEAR BEHEMOTH WITH 143 HOSPITALS ON FOUR CONTINENTS THE CHIEF EXECUTIVE OF NATIONAL MEDICAL HAS INCREASED THE STRINGENCY OF ACCOUNTING CHECKS AND BALANCES AND HE HAS LINKED INCENTIVE PAY AT HIS PSYCHIATRIC HOSPITALS TO FACTORS SUCH AS PATIENT SATISFACTION INSTEAD OF MERELY TO PROFITS HE HAS ALSO HIRED RICHARD KUSSEROW FORMER INSPECTOR GENERAL OF THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES TO POLICE THE COMPANY COMPANY OFFICIALS WANT TO BE SO CLEAN THEY SQUEAK SAYS MR KUSSEROW BUT IN SPITE OF THESE MEASURES NATIONAL MEDICAL'S FUTURE REMAINS CLOUDED BY ITS PAST THE COMPANY FACES A BEVY OF CIVIL SUITS BROUGHT BY PATIENTS ALLEGING MALPRACTICE AND INSURERS ALLEGING THAT A SIGNIFICANT CHUNK OF 1 BILLION IN CLAIMS THEY PAID TO NATIONAL MEDICAL WAS FRAUDULENT ALSO PENDING ARE 14 SEPARATE FEDERAL AND STATE INVESTIGATIONS INCLUDING PRELIMINARY ONES BY THE FEDERAL TRADE COMMISSION AND SECURITIES AND EXCHANGE COMMISSION INTO PRACTICES OF THE PSYCHIATRIC DIVISION AND RELATED MATTERS GOVERNMENT INVESTIGATORS PREDICT THAT BY THIS SUMMER CRIMINAL INDICTMENTS WILL BE FORTHCOMING IN COURTS AROUND THE COUNTRY AGAINST NATIONAL MEDICAL MANAGERS INCLUDING PERHAPS SOME TOP EXECUTIVES RESOLVING THOSE ISSUES ALREADY HAS TAKEN A FINANCIAL TOLL ON NATIONAL MEDICAL IN THE FISCAL YEAR ENDED MAY 31 NET INCOME AT THE ONCE HUGELY PROFITABLE COMPANY FELL 618 TO 1041 MILLION OR 60 CENTS A SHARE FROM 2724 MILLION OR 170 A SHARE THE YEAR EARLIER LARGELY BECAUSE OF THE COST OF LEGAL SETTLEMENTS RESTRUCTURING AND DECLINING OCCUPANCY AT PSYCHIATRIC HOSPITALS FOLLOWING THE BAD PUBLICITY ANALYSTS EXPECT IMPROVEMENT THIS YEAR THOUGH NOT A RETURN TO 1991'S PROFIT LEVEL THE TROUBLES HAVE GIVEN THE COMPANY'S STOCK A BEATING IT CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT 11625 A SHARE DOWN 625 CENTS COMPARED WITH ABOUT 24 WHEN THE COMPANY'S PROBLEMS EMERGED IN SEPTEMBER 1991 FOR HIS PART MR EAMER CONCEDES THE SCANDAL WILL PLACE HIS COMPANY UNDER A PALL FOR YEARS TO COME BUT THE 64YEAROLD FOUNDERWHO ONCE WORE TO A MEDIA INTERVIEW ABOUT THE SCANDAL A SWEATSHIRT PROCLAIMING I'M NOT ARROGANT I'M JUST ALWAYS RIGHT REMAINS UNAPOLOGETIC THE COMPANY HAS ATTRIBUTED WHATEVER WRONGDOING OCCURRED TO ISOLATED INSTANCES OF POOR JUDGMENT AT A FEW PSYCHIATRIC HOSPITALS IN TEXAS AND WHILE MR EAMER WON'T COMMENT ON SPECIFIC CHARGES BECAUSE OF PENDING LAWSUITS HE TRACES THE VAST MAJORITY OF SUITS TO VULTURES PREYING ON A DEEPPOCKETED COMPANY IN DISTRESS THAT MAY BE BUT THE PERSISTENCE OF THE CONTROVERSY ISN'T EXPLAINED MERELY BY GREEDY FORTUNE HUNTERS OR BY EYEPOPPING ALLEGATIONS SUCH AS THAT NATIONAL MEDICAL BILLED INSURERS FOR SERVICES NEVER RENDERED AND SOMETIMES TREATED PATIENTS FOR AILMENTS THEY DIDN'T HAVE AT A TIME OF NATIONAL ANXIETY OVER RUNAWAY HEALTHCARE COSTS THE CASE OF NATIONAL MEDICAL RAISES TROUBLING QUESTIONS ABOUT THE TEMPTATIONS FORPROFIT HOSPITALS CAN FACE TO PLACE PROFITS ABOVE THE NEEDS OF PATIENTS AFTER MONTHS OF INVESTIGATING NATIONAL MEDICAL'S PSYCHIATRIC HOSPITALS AS DIRECTOR OF THE NEW JERSEY INSURANCE DEPARTMENT'S FRAUD DIVISION LOUIS PARISI SAYS THESE PEOPLE JUST CARE ABOUT MAKING MONEY AND AFTER DOING A SIMILAR INQUIRY ON BEHALF OF AN AETNA LIFE & CASUALTY CO UNIT JAMES GARCIA DIRECTOR OF ITS HEALTH INSURANCE TRACKING UNIT CONTENDS THAT AT NATIONAL MEDICAL PATIENTS WERE SEEN SOLELY AS PROFITS AETNA IS ONE OF SEVERAL INSURERS SUING NATIONAL MEDICAL FORMER EMPLOYEES OF NATIONAL MEDICAL DESCRIBE A CORPORATE CULTURE THAT PRIZED PROFITS ABOVE ALL ELSE AND NOT ONLY AT THE PSYCHIATRIC HOSPITALS ONE OF FOUR KINDS OF HOSPITALS THE FIRM OPERATES TEN LARGE INSURANCE COMPANIES THAT ALREADY ARE SUING NATIONAL MEDICAL OVER ALLEGEDLY FRAUDULENT PSYCHIATRICCARE CLAIMS ARE NOW INVESTIGATING THE COMPANY'S GENERAL AND REHABILITATIVE HOSPITALS SEEKING EVIDENCE OF WRONGFUL BILLING MEANWHILE THERE IS SOME EVIDENCE THAT SOME OF THE COMPANY'S GENERAL HOSPITALS ARE VIOLATING THE LAW BY OFFERING PERKS AND PAYMENTS TO DOCTORS IN EXCHANGE FOR PATIENT REFERRALS BY ALL ACCOUNTS THE VALUES AND CULTURE AT NATIONAL MEDICAL HAVE ALWAYS BEEN SET BY RICHARD EAMER AN ORPHAN WHO DROPPED OUT OF HIGH SCHOOL AND DROVE TRUCKS BEFORE RETURNING TO SCHOOL AND GETTING A LAW DEGREE MR EAMER WAS TOILING AS A HEALTHCARE TAX ATTORNEY IN THE LATE 1960S WHEN HE SAW A GOLDEN OPPORTUNITY THE GOVERNMENT'S LAUNCH OF THE MEDICARE AND MEDICAID PROGRAMS OFFERED GUARANTEED PROFITS BY SPURRING DEMAND FOR HEALTHCARE SERVICES AND PROMISING TO PAY PROVIDERS 6 TO 8 ABOVE THEIR COSTS MR EAMER WOOED CALIFORNIA DOCTORS FROM MODESTO TO MONTEREY PARK AND TOOK CONTROL OF THEIR HOSPITALS FOR CHUNKS OF STOCK IN WHAT HE PROMISED WOULD BECOME A LUCRATIVE HEALTHCARE CHAIN WITH SIX CALIFORNIA HOSPITALS AND A 25 MILLION PUBLIC STOCK OFFERING IN 1969 NATIONAL MEDICAL WAS BORN FOR YEARS AFTERWARD NATIONAL MEDICAL ADDED TO ITS HOSPITAL CHAIN AND PROFITS STEADILY ACHIEVING 15 ANNUAL EARNINGS GROWTH AS IT GREW MR EAMER DEVELOPED A DECENTRALIZED STRUCTURE WITH EACH HOSPITAL REPORTING FINANCIAL RESULTS SEPARATELY HE ALSO GAVE HOSPITAL MANAGERS AND OTHER EXECUTIVES A GREAT DEAL OF AUTONOMY TO MEET FINANCIAL GOALS THE STRUCTURE FREED HIM FROM THE DEMANDS OF DAILY OPERATIONS AND FORMER EXECUTIVES SAY HE TOOK FULL ADVANTAGE OF THAT FREEDOM OFTEN USING THE CORPORATE FLEET OF PLANES TO DISAPPEAR SOMETIMES FOR VISITS TO COMPANYOWNED CONDOMINIUMS IN LONDON OR ASPEN COLO YOU WOULD SOMETIMES NOT KNOW WHERE HE WAS FOR WEEKS SAYS F SCOTT GROSS A FORMER PRESIDENT OF THE GENERAL HOSPITAL DIVISION HE DIDN'T CONSIDER IT ANYONE'S BUSINESS MR EAMER SAYS ALL SUCH TRIPS WERE EITHER BUSINESSRELATED OR PAID FOR BY HIM AND HE WASN'T GONE MORE THAN A WEEK AT A TIME HE PAID HIMSELF AND HIS SUBORDINATES EXCEPTIONALLY WELL IN 1991 EVEN AS THE COMPANY'S FORTUNES PLUMMETED MR EAMER WAS THE HIGHEST PAID EXECUTIVE OF A CALIFORNIABASED PUBLIC COMPANY AT 199 MILLION AND FIVE NATIONAL MEDICAL EXECUTIVES WERE AMONG THE TOP 30 MR EAMER'S TAKE WAS LARGELY DUE TO HIS CASHING IN STOCK OPTIONS HOWEVER AND LAST YEAR HIS EARNINGS DECLINED TO 38 MILLION OVER THE YEARS MR EAMER BOUGHT THREE THOROUGHBRED BREEDING FARMS AND TWO HOMES NEAR THE OCEAN IN STARSTUDDED PACIFIC PALISADES HE GREW A PONYTAIL AND DROVE FLASHY CARS AT THE OFFICE HE WAS SEEN TRAVERSING HALLWAYS ON A SCOOTER AND OCCASIONALLY PASSING TIME IN SENIORLEVEL MEETINGS CLIPPING HIS FINGERNAILS AND PLAYING WITH HIS BLACK RETRIEVER IN RECENT YEARS MR EAMER HAS SPOKEN OPENLY OF BEING WHAT HE CALLS HYPOMANIC DEPRESSIVE SAYING THE DISORDER IS FULLY UNDER CONTROL WITH HIS USE OF THE DRUG LITHIUM IN ANY CASE HIS UNPREDICTABILITY NEVER EXTENDED TO FINANCIAL MATTERS EACH MONTH HE STUDIES A HIGHLY DETAILED PROFITLOSS ANALYSIS FOR EACH HOSPITAL EXEMPLOYEES SAY IT'S NEVER BEEN ANY MYSTERY HOW HE WOULD RESPOND TO DISAPPOINTMENT DICK'S PHILOSOPHY WAS I PAY WELL YOU PRODUCE SAYS DONALD J AMARAL A FORMER CHIEF FINANCIAL OFFICER FOR GENERAL HOSPITALS DICK GIVES YOU ALL THE ROOM YOU WANT BUT HE WILL CASTRATE YOU IF YOU MAKE ANY ERRORS ADDS JOHN BOWEN A FORMER NATIONAL MEDICAL EXECUTIVE AND CONSULTANT OF 18 YEARS WHO LEFT IN 1988 AND LATER FILED A LAWSUIT CHARGING THAT THE COMPANY HADN'T PAID WHAT HE CLAIMED WERE MILLIONS OF DOLLARS IN FEES DUE HIM THE SUIT WAS SETTLED OUT OF COURT TWO FORMER EXECUTIVES SAY MR EAMER CALLED THEM MORONS IN FRONT OF OTHER OFFICIALS ANOTHER FORMER EXECUTIVE MR GROSS WHO HAD HEADED THE GENERAL HOSPITAL DIVISION SAYS I CAN COUNT ON ONE HAND THE TIMES I HAVE BEEN INTIMIDATED IN MY LIFE SEVERAL DIGITS GO TO DICK EAMER THERE WERE TIMES HE REDUCED ME TO EMOTIONAL RUBBLE IN 1985 FOR INSTANCE WITH CUTBACKS IN MEDICARE AND MEDICAID PAYMENTS REDUCING PROFITS AT MOST GENERAL HOSPITALS MR GROSS SAYS HE TOLD MR EAMER TO EXPECT 1986 PROFIT GROWTH OF 2 TO 3 MR EAMER DEMANDED 10 TO 12 DICK SAID DON'T BRING ME NEWS THAT MY EARNINGS AREN'T GOING TO BE THERE' MR GROSS SAYS MR EAMER DENIES THAT HE SETS UNREALISTIC PROFIT GOALS OR RESPONDS ABUSIVELY IF EXECUTIVES DON'T MEET THEM MANY PEOPLE AT THE COMPANY DON'T MEET BUDGETS HE SAYS WITH MANAGERS OFFERED INCENTIVES THAT COULD DOUBLE TAKEHOME PAY IF THEY MET HIGHLY AMBITIOUS PROFIT GOALS ALL THE WHILE RECEIVING LITTLE GUIDANCE ON HOW TO DO IT FORMER EXECUTIVES AREN'T SURPRISED THAT EVIDENCE OF WRONGDOING EMERGED IT WAS THE BASIC ORGANIZATIONAL STRUCTURE AND THE INCENTIVES THAT CREATED THE ENVIRONMENT THAT MADE THE PROBLEMS IN THE PSYCHIATRIC UNIT POSSIBLE SAYS MR GROSS IT IS PERHAPS ALSO NOT SURPRISING THAT THE CONTROVERSY INVOLVED THE COMPANY'S PSYCHIATRIC UNIT SINCE THE DIAGNOSIS OF MENTAL AND BEHAVIORAL ILLS IS LESS PRECISE THAN THAT OF OTHER MEDICAL PROBLEMS IT WAS IN 1986 WITH EARNINGS SLIDING AT ACUTECARE HOSPITALS THAT MR EAMER TRIMMED A THIRD OF THOSE HOSPITALS AND REFOCUSED ON PSYCHIATRIC SUBSTANCEABUSE AND PHYSICALREHABILITATIVE HOSPITALS A FIELD WHERE GOVERNMENT AND INSURANCE COSTCONTROLS WERE VIRTUALLY NONEXISTENT A 1 BILLION EXPANSION MUCH OF IT IN THE COMPANY'S PSYCHIATRIC INSTITUTES OF AMERICA UNIT WAS LAUNCHED AND THE NUMBER OF ITS PSYCHIATRIC AND SUBSTANCEABUSE HOSPITALS GREW TO 86 IN 1991 FROM 62 IN 1988 IN THE LATE 1980S AS INSURERS BEGAN PLACING SOME CONSTRAINTS ON PSYCHIATRICCARE PAYMENTS OCCUPANCY RATES WEAKENED AT MOST US PSYCHIATRIC HOSPITALS NOT AT NATIONAL MEDICAL'S OCCUPANCY RATES AT ITS PSYCHIATRIC HOSPITALS JUMPED TO 84 IN 1989 FROM 75 IN 1987 AND WERE RUNNING 25 POINTS ABOVE THE COMPETITION WE ALL THOUGHT IT WAS THE QUALITY OF CARE THAT WAS KEEPING THE BEDS FILLED SAYS JOHN HINDELONG A HEALTHCARE ANALYST FOR DONALDSON LUFKIN & JENRETTE IT LOOKED ON PAPER LIKE SUCH AN ATTRACTIVE STORY MR EAMER STILL SAYS IT WAS QUALITY CARE THAT MADE THE DIFFERENCE BUT FORMER HOSPITAL MANAGERS DESCRIBE A CORPORATE STRATEGY TO GET THE MOST MONEY POSSIBLE OUT OF EVERY PATIENT ROBERT STUCKEY FORMER LONGTIME MEDICAL DIRECTOR OF THE ALCOHOLISM UNIT AT NATIONAL MEDICAL'S FAIR OAKS HOSPITAL IN SUMMIT NJ TOLD THE STATE'S INSURANCE DEPARTMENT THAT HOSPITAL ADMINISTRATORS ORDERED HIM TO KEEP PATIENTS HOSPITALIZED LONGER THAN MEDICALLY NECESSARY AND ORDERED UNNECESSARY TESTS SUCH AS A SPERM COUNT ON ALL HIS MALE PATIENTS TO GET MORE MONEY FROM INSURERS ACCORDING TO TESTIMONY DR STUCKEY GAVE TO STATE AND CONGRESSIONAL INVESTIGATORS MR EAMER WON'T COMMENT ON ANY SPECIFIC ALLEGATIONS ABOUT THE PSYCHIATRIC UNIT ONE DOCUMENT CIRCULATED AT NATIONAL MEDICAL'S PSYCHIATRIC HOSPITALS SPELLED OUT HOW TO WRITE UP PATIENT CHARTS TO ACHIEVE MAXIMUM INSURANCE PAYMENTS IT IS FILED AS PART OF A SHAREHOLDER LAWSUIT IN STATE COURT IN LOS ANGELES ITS FIRST PAGE IS A LETTER WRITTEN BY A FICTITIOUS INSURANCE COMPANY THE NAME WEECHEETUM IN A 1991 INTAKE MANUAL SENT TO ALL NATIONAL MEDICAL PSYCHIATRIC HOSPITALS ADMINISTRATORS OUTLINED THE GOLDEN RULES ACCORDING TO A COPY OBTAINED BY THIS NEWSPAPER AMONG THEM TO HOSPITALIZE ONE OF EVERY TWO PEOPLE WHO CAME IN FOR A FREE PSYCHOLOGICAL ASSESSMENT A WEEKLY INSURANCE REMAINING REPORT NOT MEDICAL INDICATIONS DETERMINED WHEN PATIENTS WERE RELEASED SAYS RUSSEL DURRETT FORMER CONTROLLER OF NATIONAL MEDICAL'S TWIN LAKES HOSPITAL IN DENTON TEXAS IT WAS COMMON PRACTICE AT TWIN LAKES HOSPITAL TO BILL ADOLESCENTS FOR EIGHT GROUP THERAPY SESSIONS PER DAY THE NUMBER WENT UP TO 10 IF REVENUE WAS SAGGING MR DURRETT TESTIFIED TO THE HOUSE SELECT COMMITTEE ON CHILDREN YOUTH AND FAMILIES LAST SPRING AND IF PROFITS WERE TOO HIGH FOR ONE QUARTER MR DURRETT TESTIFIED HE AND OTHERS WERE ORDERED TO BOOK GHOST EXPENSES TO HIDE SOME OF THEM NUMEROUS EXEMPLOYEES AND LAWSUITS BROUGHT BY INSURERS AND OTHERS CONTEND THAT KICKBACKS AND BOUNTY HUNTER FEES OF UP TO 2000 PER PATIENT WERE PAID TO PEOPLE RANGING FROM PROBATION OFFICERS AND CLERGYMEN TO OFFICERS OF CORPORATE EMPLOYEEASSISTANCE PROGRAMS MR DURRETT SAYS IN AN INTERVIEW THAT AS PART OF THE 25 WEEKLY COLD CALLS HE HAD TO MAKE HE EVEN SOLICITED NURSERY SCHOOLS FOR BUSINESS APART FROM ITS CHAIN OF PSYCHIATRIC HOSPITALS SOME OF WHICH HAD SUBSTANCEABUSE UNITS NATIONAL MEDICAL OPERATES A CHAIN OF CHEMICALDEPENDENCY FACILITIES THAT ARE ALSO COMING UNDER FIRE WILLIAM MCCABE A PSYCHOLOGIST AND FORMER EXECUTIVE DIRECTOR OF NATIONAL MEDICAL'S NEW BEGINNINGS CHEMICALDEPENDENCY FACILITY IN LAKEWOOD COLO ASSERTS IN A RECENT SUIT FILED IN STATE COURT IN COLORADO THAT IN JUNE 1990 GREGORY LACHOWICZ THEN SENIOR VICE PRESIDENT OF NATIONAL MEDICAL'S RECOVERY CENTERS DIVISION INFORMED HIM OF A NEW CONTINUED STAY ADMISSIONS POLICY A PATIENT'S STAY HENCEFORTH WOULD BE DETERMINED NOT UPON A PATIENT'S INDIVIDUAL MEDICAL NEEDS BUT ON THE INSURANCE OR PAYOR MIX AVAILABLE THE SUIT ALLEGES THE SUIT ALLEGES THAT THE POLICY CALLED FOR PATIENTS WHOSE INSURANCE PAID LESS THAN 30 OF BILLINGS TO BE SHOWN THE DOOR WITHIN 10 DAYS BUT IT CALLED FOR THOSE WITH AT LEAST 60 COVERAGE TO STAY A MINIMUM OF 28 DAYS AFTER REFUSING TO IMPLEMENT THE POLICIES MR MCCABE WAS FIRED ACCORDING TO HIS SUIT WHICH CHARGES WRONGFUL TERMINATION MR LACHOWICZ WHO IS NO LONGER AN EMPLOYEE DIDN'T RETURN PHONE CALLS SEEKING COMMENT CHERYL PAUL SAYS SHE SAW SUCH PRACTICES FIRSTHAND IN 1990 SHE VOLUNTARILY CHECKED INTO NATIONAL MEDICAL'S DOCTOR'S HOSPITAL IN DALLAS FOR A TWOWEEK SUBSTANCEABUSE TREATMENT PROGRAM WHEN SHE ASKED TO LEAVE SHE WAS STRAPPED DOWN WITH LEATHER RESTRAINTS IN A FOURPOINT SPREADEAGLE POSITION IN A SECLUSION ROOM AND KEPT THAT WAY FOR SIX OR SEVEN WEEKS ALL TO CASH IN ON HER INSURANCE COVERAGE SHE CHARGES IN A RECENT LAWSUIT AGAINST NATIONAL MEDICAL FILED IN STATE COURT IN DALLAS A NATIONAL MEDICAL SPOKESMAN WHILE DECLINING TO COMMENT ON PENDING LITIGATION SAYS THE COMPANY HAS STRICT RULES ABOUT WHEN AND HOW TO USE SUCH RESTRAINTS MR EAMER AND OTHER NATIONAL MEDICAL OFFICIALS SAY THAT FEWER THAN 1 OF PSYCHIATRIC PATIENTS HAVE BEEN DISSATISFIED THAT ANY WRONGDOING AT THE COMPANY WAS LIMITED TO PSYCHIATRIC FACILITIES AND THAT ANY PROBLEM AT THOSE FACILITIES HAS BEEN ADDRESSED AN INTERNAL INVESTIGATION LAST YEAR LED TO THE FIRING OF NORMAN ZOBER HEAD OF THE COMPANY'S SPECIALTY HOSPITAL GROUP AND TO IMPROVED OVERSIGHT NATIONAL MEDICAL MOVED TO CALIFORNIA THE HEADQUARTERS OF THREE UNITS PREVIOUSLY BASED IN WASHINGTON DC INCLUDING THE PSYCHIATRIC UNIT BUT A GROUP OF BIG INSURANCE COMPANIES ISN'T SO SURE THE PROBLEMS AREN'T MORE WIDESPREAD THEY ARE INVESTIGATING BILLING PRACTICES OF NATIONAL MEDICAL'S GENERAL HOSPITALS WHERE THERE ARE INDICATIONS OF POSSIBLE WRONGDOING TWICE IN TWO YEARS THE COMPANY'S GENERAL HOSPITAL DIVISION HAS BEEN SLAPPED WITH CEASEANDDESIST ORDERS FROM THE FTC WHICH CHARGED SOME NATIONAL MEDICAL HOSPITALS WITH MAKING FALSE AND MISLEADING CLAIMS IN ADVERTISEMENTS FOR PATIENTS BARRY P SCHOCHET PRESIDENT OF THE GENERAL HOSPITAL DIVISION SAYS THE ORDERS STEMMED FROM ISOLATED AND UNINTENTIONAL INSTANCES AT INDIVIDUAL HOSPITALS FOUR FORMER EXECUTIVES OF THE GENERAL HOSPITAL DIVISION SAY IN INTERVIEWS THAT NATIONAL MEDICAL HAS ROUTINELY OFFERED INDUCEMENTS TO DOCTORS FOR PATIENT REFERRALS AND COMPENSATED FOR THEM BY CHARGING INSURERS AT A HIGHER RATE THAN THEIR NOTFORPROFIT COMPETITION FOR A BROAD RANGE OF TREATMENTS AND SERVICES THE EXECUTIVES ALSO SAY THE COMPANY HAS FORGIVEN BIG LOANS TO DOCTORS IN EXCHANGE FOR PATIENT REFERRALS IT'S A FELONY FOR HOSPITALS TO PAY OR GIVE ANYTHING OF VALUE IN EXCHANGE FOR A MEDICARE OR MEDICAID PATIENT REFERRAL ALTHOUGH GOVERNMENTAL OFFICIALS CONCEDE THE LAW IS WEAKLY ENFORCED AND SUCH PRACTICES ARE FAIRLY WIDESPREAD JOSEPH BRYANT A SURGEON WITH ADMITTING PRIVILEGES AT NATIONAL MEDICAL'S UNIVERSITY MEDICAL CENTER IN LEBANON TENN SAYS HE KNOWS SEVERAL PHYSICIANS WHO LARGELY STOPPED REFERRING PATIENTS TO COMPETING HOSPITALS AFTER SIGNING LEASES AT 1 A YEAR FOR 50 YEARS TO MOVE THEIR MEDICAL CLINICS ONTO NATIONAL MEDICAL LAND ADJOINING UNIVERSITY MEDICAL CENTER IT'S AN UNWRITTEN AGREEMENT FOR THE PATIENT REFERRALS DR BRYANT SAYS HE BELIEVES IN THE 1980S SO MANY OF THE RENTS IN THE DOZENS OF MEDICAL BUILDINGS NATIONAL MEDICAL OPERATED NEXT TO ITS HOSPITALS WERE WELL UNDER MARKET VALUE OR ALTOGETHER FREE THAT THE BUILDINGS OPERATED AT A LOSS SAYS MR AMARAL THE FORMER CHIEF FINANCIAL OFFICER FOR GENERAL HOSPITALS MR SCHOCHET THE GENERAL HOSPITAL DIVISION PRESIDENT SAYS THE COMPANY DOES PROVIDE LOW RENTS AND INCOME GUARANTEES FOR PHYSICIANS BUT THESE AREN'T GIVEN IN EXCHANGE FOR POTENTIAL PATIENT REFERRALS HE DENIES THAT THE FIRM RAISES RATES SPECIFICALLY TO OFFER DOCTORS' INDUCEMENTS TWO YEARS AGO THE COMPANY PROVIDED JONATHAN COHEN AN ORTHOPEDIC SURGEON WHO IS THE SON OF LEONARD COHEN THE COMPANY'S CHIEF OPERATING OFFICER WITH 291343 FOR INCOME AND RENT ASSISTANCE MALPRACTICE INSURANCE EQUIPMENT AND RELOCATION EXPENSES AND A LOAN OF 228000 THE COMPANY'S 1992 PROXY STATEMENT SAYS IT ADDED THAT HIS MOVE WOULD HELP EASE THE ORTHOPEDICSURGEON SHORTAGE IN HIS NEW LOCATION MODESTO CALIF BUT A STUDY BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES ESTIMATED THE NEED FOR ORTHOPEDIC SURGEONS IN 1990 AT ONE PER 16127 PEOPLE AND COUNTY RECORDS SHOW THAT MODESTO BOASTS ONE FOR EVERY 6880 PEOPLE DR COHEN ISN'T THE ONLY SON OF A TOP NATIONAL MEDICAL OFFICIAL TO BE AFFILIATED WITH THE COMPANY BRIAN EAMER MR EAMER'S SON IS THE COMPANY'S SENIOR VICE PRESIDENT FOR REAL ESTATE MICHAEL FOCHT JR ASSOCIATE COUNSEL FOR NATIONAL MEDICAL IS THE SON OF MICHAEL FOCHT SR SENIOR EXECUTIVE VICE PRESIDENT AND DIRECTOR OF OPERATIONS NATIONAL MEDICAL'S BOARD OF DIRECTORS SEEMS TO BE STANDING FIRMLY BEHIND MR EAMER THAT'S PERHAPS NOT SURPRISING THE 17MEMBER BOARD HAS SEVEN MEMBERS EMPLOYED BY THE COMPANY AND OF THE 10 OUTSIDE DIRECTORS EIGHT EITHER ARE FORMER EMPLOYEES OR HAVE TIES TO COMPANIES THAT RECEIVE DONATIONS OR BUSINESS FROM NATIONAL MEDICAL MR BOWEN THE FORMER EXECUTIVE WHO SUED FOR FEES HE SAID NATIONAL MEDICAL OWED HIM SAYS HE SENT A LETTER TO EACH DIRECTOR CHARGING MR EAMER WITH MISUSE OF COMPANY ASSETS VACATION TRAVEL CHARACTERIZED AS REIMBURSABLE BUSINESS EXPENSE AND MORE A NATIONAL MEDICAL SPOKESMAN SAYS THE BOARD FOUND THE ALLEGATIONS TOTALLY WITHOUT SUBSTANCE A FRUSTRATED MR EAMER CALLING HIMSELF THE HARDESTWORKING EXECUTIVE IN THE HEALTHCARE INDUSTRY IS DETERMINED TO RESTORE HIS COMPANY'S GOOD NAME AND STRONG FINANCIAL RECORD HE NOTES THAT IT HAS ONE OF THE STRONGEST BALANCE SHEETS IN THE HOSPITAL INDUSTRY AND HE IS TAKING STEPS TO POSITION THE COMPANY FOR THE FUTURE WITH OCCUPANCY RATES IN THE PSYCHIATRIC DIVISION DOWN TO 52 MR EAMER IS SELLING OFF MANY PSYCHIATRIC HOSPITALS AND RETURNING THE CORPORATE FOCUS TO ITS 35 GENERAL HOSPITALS AND THOSE GENERAL HOSPITALS ARE POSTING AN ADMISSIONS RISE NOW ONCE AGAIN IN DEFIANCE OF A NATIONAL DOWNTURN MR EAMER SAYS THIS ISN'T BECAUSE OF ANY MARKETING GIMMICKS OR PLOYS TO EXPLOIT PATIENTS' INSURERS RATHER HE ATTRIBUTES THE RISING OCCUPANCY TO SUPERIOR CARE OUR FOCUS IS ON THE PATIENT HE TOLD A PACKED ROOM OF ANGRY SHAREHOLDERS AT LAST SEPTEMBER'S ANNUAL MEETING WE KNOW EVERYTHING ELSE WILL FOLLOW MAURICE J DEWALD CHAIRMAN VENTUREAST LTD 9301080098 930108 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU COMPILED BY RICH JAROSLOVSKY CONGRESSIONAL REPUBLICANS AIM AT DEMOCRATIC COUNTERPARTS NOT AT CLINTON GOP LEADERS WILL SEEK TO EXPLOIT POSSIBLE TENSIONS BETWEEN CAPITOL HILL LIBERALS AND SOME OF CLINTON'S MORE MODERATE ADVISERS EVEN AS HOUSE GOP WHIP GINGRICH VOWS A REPEAT OF THE PARTISAN WARFARE THAT MARRED CONGRESS'S OPENING DAY HE SAYS REPUBLICANS CAN WORK WITH CLINTON IF HE GOVERNS AS A CENTRIST WHILE PRAISING CLINTON GOP SEN DOMENICI REBUKES BUDGET CHAIRMAN SASSER FOR LOOKING FOR EXCUSES ON THE DEFICIT TURNOVER IN IMPORTANT HOUSE SUBCOMMITTEE SLOTS COULD SIGNAL MORE BRUTAL PARTISAN FIGHTS AHEAD ESPECIALLY ON WAYS AND MEANS WHERE CHAIRMAN ROSTENKOWSKI IS PREOCCUPIED WITH A GRAND JURY PROBE AND WHERE AGGRESSIVE REP BILL THOMAS REPLACES THE MORE MODERATE GRADISON AS THE TOP REPUBLICAN ON THE SUBCOMMITTEE CHARGED WITH SHAPING FUTURE HEALTH LEGISLATION HOUSE REPUBLICANS ALSO SEEK AN OMBUDSMAN TO REVIEW COST ESTIMATES BY THE CBO AND JOINT TAX COMMITTEE WITH THE SUGGESTION THAT DEMOCRATS MIGHT OTHERWISE TRY TO COOK THE BOOKS BENTSEN'S TREASURY EMERGES AS A POTENTIAL POLICY POWERHOUSE BACKED BY BENTSEN'S SUBSTANTIAL CLOUT HIS DEPUTY AND LONGTIME CLINTON PAL ROGER ALTMAN IS LIKELY BE A BIG PLAYER IN POLICY ISSUES THE FORMIDABLE JOB OF MANAGING THE TREASURY BUREAUCRACY MAY BE LEFT TO SOMEONE WITH CORPORATE EXPERIENCE BOTH ALTMAN AND WORLD BANK ECONOMIST LAWRENCE SUMMERS WHO IS TO BE AN UNDERSECRETARY HAVE CLOSE TIES TO GENE SPERLING A TOP ASSISTANT TO ROBERT RUBIN THE WHITE HOUSE NATIONAL ECONOMIC ADVISER BY CONTRAST WHILE NEW BUDGET CHIEF PANETTA AND DEPUTY RIVLIN HAVE MOVED QUICKLY TO TAP INTO BUDGETOFFICE NUMBERS INSIDERS SAY NEITHER IS PARTICULARLY GOOD AT BUILDING CONSENSUS RAPID RESUMPTION OF MIDEAST TALKS LOOMS AS AN EARLY TEST FOR CLINTON THE CONTROVERSY OVER ISRAEL'S DEPORTATION OF PALESTINIAN ISLAMIC ACTIVISTS MAKES A RESUMPTION OF PEACE TALKS BOTH MORE DIFFICULT AND MORE URGENT CLINTON ADVISERS THINK IT'S IMPORTANT TO GET TALKS UNDER WAY AGAIN IN FEBRUARY SINCE MARCH IS AN ISLAMIC HOLY MONTH AND APRIL IS THE MONTH OF PASSOVER ARAB LEADERS ALL SEEM TO WANT TO RETURN TO THE TABLE BUT THE FATE OF THE DEPORTED PALESTINIANS PROBABLY MUST BE RESOLVED FIRST ONE POSSIBLE SCENARIO ISRAEL ACKNOWLEDGES SOME DEPORTEES WERE EVICTED BY MISTAKE A THIRD COUNTRY IS PERSUADED TO TAKE OTHERS AND A FACESAVING METHOD IS ARRANGED TO PROVIDE HUMANITARIAN AID TO THE REST WHILE THEIR FATE IS SORTED OUT RABIN SEEMS PARTICULARLY KEEN TO WORK ON A PEACE PACT WITH SYRIA WHICH HE NOW CONSIDERS A HIGHER PRIORITY THAN WORKING ON A DEAL WITH PALESTINIANS CHRISTOPHER FACES A GOP GRILLING AT HIS SECRETARY OF STATE CONFIRMATION HEARING ABOUT JAPANESE CLIENTS REPRESENTED BY HIS LAW FIRM O'MELVENY & MYERS AMONG THE JAPANESE COMPANIES O'MELVENY HAS REPRESENTED ARE FUJI BANK INDUSTRIAL BANK OF JAPAN AND NIPPON STEEL REPUBLICANS RUSH FOR LASTMINUTE ACTIONS BEFORE BUSH LEAVES OFFICE SENATE GOP LEADER DOLE PRESSES THE TREASURY TO SCRAP A REQUIREMENT THAT GALLO SPARKLING WINES BE LABELED BULK PROCESSED INTERIOR PLANS A RULE MAKING IT LESS ATTRACTIVE FOR CONSERVATION GROUPS TO BUY LAND AND SELL IT TO THE GOVERNMENT AND MOVES TO SELL A PROPOSED LOWLEVELRADIOACTIVEWASTE DUMP SITE TO CALIFORNIA BEFORE CLINTON TAKES OVER OUR TURN NEOCONSERVATIVE AND CENTRIST DEMOCRATS ALARMED OVER THE SELECTION OF CARTER ADMINISTRATION ALUMS FOR KEY NATIONAL SECURITY SLOTS HOPE TO CAPTURE POLICY PLANNING POSITIONS AT STATE AND DEFENSE BUT THE STATE JOB MAY GO TO CLINTON FRIEND MICHAEL MANDELBAUM MAKING THE PENTAGON THE LAST BEST HOPE FOR THE NEOCONS A PRIME CANDIDATE IS FORMER CARTER DEFENSE AIDE WALTER SLOCOMBE EPA DESIGNEE BROWNER AND ENERGY DESIGNEE O'LEARY MAY HAVE SOME FENCEMENDING TO DO IN THE CLINTON CABINET LAST SUMMER BROWNER THEN FLORIDA'S ENVIRONMENTAL CHIEF HELPED BLOCK A COALFIRED POWER PLANT NEAR LAKE OKEECHOBEE THAT WOULD HAVE BEEN PARTLY OWNED BY NORTHERN STATES POWER WHERE O'LEARY WAS AN EXECUTIVE GORE GEARS UP ON BOTH FOREIGN AND DOMESTIC POLICY ISSUES THROUGH HIS SENATE WORK ON NATIONAL SECURITY ISSUES HE HAS IMPORTANT TIES WITH IRAQI KURDS WHO COULD BE IMPORTANT TO US POLICY TOWARD IRAQ ALSO GORE'S BACKGROUND IN DEALING WITH STRATEGIC ISSUES COULD MAKE HIM VALUABLE IN GETTING THE NEW ARMS PACT RATIFIED AND WORKING ON UKRAINE AND KAZAKHSTAN TO GIVE UP THEIR NUCLEAR WEAPONS HE'LL ALSO BE A MAJOR PLAYER ON SCIENCE AND TECHNOLOGY ISSUES NASA WILL BE TOLD TO MATCH ITS DREAMS MORE TO ITS POCKETBOOK HE WILL PRESS COMMERCE FOR POLICIES TO MAKE SUPERCOMPUTER TECHNOLOGY MORE ACCESSIBLE TO BUSINESSES COLLEGES AND MEDICINE STILL UNDECIDED WHETHER TO ABOLISH QUAYLE'S REGULATIONBUSTING COMPETITIVENESS COUNCIL OR REVAMP AND RETAIN IT AS A GORE VEHICLE PACIFIC NORTHWEST LOGGERS BRISTLE AT GORE'S ASSIGNMENT TO MEDIATE THEIR DISPUTE WITH ENVIRONMENTALISTS FIGURING HE WILL TILT AGAINST THEM MINOR MEMOS THE ADVERTISING SLOGAN OF THE ARKANSAS DIVISION OF THE AMERICAN CANCER SOCIETY BE LIKE BILL DON'T INHALE HOT OFF THE PRESSES THE ORIGINAL WASHINGTON SCANDALS CALENDAR FEATURING FULLCOLOR REENACTMENTS OF RECENT LOWLIGHTS IN AMERICAN HISTORY A THINK TANK OFFERS A LECTURE TODAY ON A PROPOSAL FOR THE US TO BUY SIBERIA FROM THE RUSSIANS 9301080097 930108 AUTOS MOTOR CITY'S CAR SHOW PULLS OUT AHEAD BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE LOS ANGELES AUTO SHOW OPENED THIS WEEK CHRYSLER CORP PUT ITS BOLDLY STYLED NEW PICKUP TRUCK ON DISPLAY SORT OF THE TRUCK WAS HIDDEN BEHIND A FENCE FOR THE FIRST FEW DAYS OF THE SHOW THE REASON ORGANIZERS OF THE NORTH AMERICAN INTERNATIONAL AUTO SHOW IN DETROIT WANTED THE TRUCK'S DEBUT TO BE AT THEIR SHOW CHRYSLER HAD AGREED AND LOS ANGELES SHOW OFFICIALS HAD TO KEEP THE TRUCK UNDER WRAPS UNTIL AFTER ITS UNVEILING IN DETROIT SOME MANUFACTURERS HAVE EMOTIONAL DILEMMAS ABOUT WHERE THEY SHOULD DEBUT THEIR PRODUCTS LAMENTS ANDY FUZESI GENERAL MANAGER OF THE LOS ANGELES SHOW AUTO MAKERS ARE USED TO FIGHTING VIGOROUSLY AMONG THEMSELVES BUT FOR AUTO SHOWS THIS SORT OF COMPETITION IS NEW PROMOTERS ACROSS THE COUNTRY ARE CLAMORING FOR MORE EXHIBIT SPACE PRESS COVERAGE AND NEWMODEL INTRODUCTIONS AND DETROIT LONG A LOSER IS FINALLY WINNING FIVE YEARS AGO DETROIT'S AUTO SHOW WAS A MORIBUND LOCAL AFFAIR THAT MOSTLY EMBARRASSED THE MOTOR CITY BUT NOW IT HAS ROARED PAST ITS RIVALS TO BECOME AN INTERNATIONAL EVENT IT'S EASILY THE MOST IMPORTANT STOP ON THE 82CITY US AUTOSHOW CIRCUIT AND COMPARABLE TO THE BIENNIAL SHOWS IN FRANKFURT AND TOKYO THIS YEAR'S DETROIT SHOW WHICH OPENS TO THE PUBLIC TOMORROW DREW 2500 REPORTERS FROM AROUND THE WORLD FOR THE PREVIEW THAT BEGAN TUESDAY CABLE NEWS NETWORK RAN A 30MINUTE SPECIAL ON THE SHOW WEDNESDAY NIGHT AND A TOKYO TV STATION IS PREPARING A THREEHOUR BROADCAST WHAT HAPPENED THE LOCAL DEALERS WHO ORGANIZE THE DETROIT SHOW APPEALED TO THE HOMETOWN LOYALTY OF THE BIG THREE CAR COMPANIES ASKING THEM TO SHOW MOST OF THEIR NEW HARDWARE IN DETROIT FIRST THE APPEAL WASN'T ALWAYS SUBTLE AFTER GENERAL MOTORS CORP UNVEILED ITS REDESIGNED CHEVROLET CAMARO AND PONTIAC FIREBIRD AT THE MIAMI AUTO SHOW IN OCTOBER DANIEL HAYES THE DETROIT SHOW'S GENERAL MANAGER FIRED OFF AN ANGRY LETTER TO GM WHY THE HELL DID YOU DO THAT MR HAYES SAYS HE ASKED THE DETROIT SHOW ALSO DID SOMETHING THAT THE BIG THREE HAVE BEEN LOATH TO DO IT OPENED THE DOORS TO IMPORTS THE ORGANIZERS PROMISED FOREIGN AUTO MAKERS PRIMETIME NEWS CONFERENCES AND CENTERSTAGE FLOOR SPACE INSTEAD OF THE SMALL DARK CORNERS THEY HAD ONCE OCCUPIED THE RESULT IN 1989 NISSAN MOTOR CORP AND TOYOTA MOTOR CORP INTRODUCED LUXURY CARS TO THE WORLD IN DETROIT NOT TOKYO AND LAST YEAR MERCEDESBENZ AG AND BAYERISCHE MOTOREN WERKE AG HELD WORLD PREMIERES OF THEIR CARS HERE IT WAS THE FIRST TIME MERCEDESBENZ HAD HELD A WORLD INTRODUCTION OUTSIDE EUROPE THE DETROIT AUTO SHOW HAS DEVELOPED INTO TRULY AN INTERNATIONAL EVENT AND HAS BECOME ONE OF THE MOST IMPORTANT SHOWS FOR MERCEDESBENZ WORLDWIDE SAYS MICHAEL BASSERMANN HEAD OF THE AUTO MAKER'S NORTH AMERICAN OPERATIONS SO IMPORTANT THAT OFFICIALS OF OTHER SHOWS ARE EAGER TO TOUT THEIR SHOWS' ADVANTAGES YOU WOULDN'T SAY CONSUMERS OF DETROIT ARE TREND SETTERS SAYS MR FUZESI OF THE LOS ANGELES SHOW WE'RE A TRENDSETTING AREA THE LA SHOW REFLECTS THAT MEANWHILE EXPANSION PLANS ARE UNDER WAY AT THE CHICAGO AUTO SHOW WHICH THE DETROIT SHOW DISPLACED DETROIT TAUGHT US THAT IF YOU DON'T LOOK OVER YOUR SHOULDER YOU NEVER KNOW WHO'S GAINING ON YOU SAYS JERRY H CIZEK GENERAL MANAGER OF THE CHICAGO SHOW WHEN WE EXPAND WATCH OUT CHICAGO DID SCORE A COUP THIS YEAR BY LANDING THE UNVEILING OF THE TOYOTA SUPRA WE LIKE TO SPREAD THINGS AROUND A BIT SAYS A TOYOTA SPOKESMAN THE PURPOSE OF AUTO SHOWS OF COURSE IS TO SELL CARS AND TO THAT END THEY PROVIDE AN EXTRA MEASURE OF MARKETING HYPE PRETTY WOMEN ARE OUT THOUGH NOT ENTIRELY ABSENT WHILE SPECIAL EFFECTS ARE IN AT LAST YEAR'S DETROIT SHOW CHRYSLER'S PRESIDENT ROBERT A LUTZ AND DETROIT MAYOR COLEMAN YOUNG DEMONSTRATED THE DURABILITY OF THE COMPANY'S NEW JEEP GRAND CHEROKEE BY DRIVING ONE UP THE STEPS OF THE COBO HALL CONVENTION CENTER AND SMASHING THROUGH A PLATEGLASS WINDOW THE STRIKING DEMONSTRATION THOUGH COULDN'T PASS A TRUTHINADVERTISING TEST THE WINDOW WAS SECRETLY RIGGED WITH AN EXPLOSIVE THAT A CHRYSLER FUNCTIONARY DETONATED JUST AS THE JEEP HIT THE GLASS TO MAXIMIZE THE POTENTIAL FOR PUBLICITY THE DETROIT SHOW MAKES IT POSSIBLE FOR REPORTERS TO COVER EVENTS WITHOUT LEAVING THE PRESS ROOM THIS YEAR THE SHOW IS VIDEOTAPING ALL NEWS CONFERENCES AND MAKING FEEDS AVAILABLE TO REPORTERS ALSO THE SHOW HIRED A SERVICE TO PROVIDE NOTES AND QUOTES FROM NEWS CONFERENCES OF COURSE SOME EVENTS HAVE TO BE COVERED FIRST HAND ROBERT C STEMPEL THE OUSTED CHAIRMAN OF GM CREATED A MINOR STIR BY SHOWING UP TO WATCH SEVERAL NEWS CONFERENCES HELD BY THE COMPANY'S MARKETING DIVISIONS TUESDAY AND WEDNESDAY HE WOULDN'T ANSWER QUESTIONS ABOUT LAST FALL'S BOARDROOM COUP BUT WHEN A REPORTER ASKED MR STEMPEL WHO RECENTLY UNDERWENT OPEN HEART SURGERY HOW HE WAS FEELING HE REPLIED WELL TIME HEALS ALL WOUNDS OVERALL THERE ISN'T MUCH NEW AT THE SHOW THIS YEAR THANKS LARGELY TO THE GLOBAL AUTOMOTIVE RECESSION AT THE 1992 SHOW DETROIT BOASTED 55 CAR AND TRUCK INTRODUCTIONS MORE THAN ALL THE OTHER AUTO SHOWS COMBINED THIS YEAR THERE ARE 23 MODEL PREMIERES SOME AUTO COMPANIES HAVE ALSO SCALED BACK THEIR EXHIBIT SPACE BUT THE 1993 DETROIT SHOW HAS HAD SOME EXCITEMENT CHRYSLER UNVEILED ITS DODGE RAM PICKUP TRUCK WHICH OFFERS A POWERFUL V10 ENGINE AS ABOUT 200 JOURNALISTS LOOKED ON THE TRUCK APPEARED TO DROP FROM THE CEILING THOUGH IT WAS ACTUALLY LOWERED BY A FORKLIFT PORSCHE AG INTRODUCED ITS MUSCULAR BOXSTER CONCEPT CAR WHICH WILL PROBABLY BE DEVELOPED INTO A NEW ENTRYLEVEL MODEL FOR 1996 THE AUTO MAKER BADLY NEEDS A NEW MODEL IN THE US BECAUSE ITS SALES HERE HAVE PLUNGED 865 TO 4115 CARS FROM THEIR PEAK IN 1986 WE WANT TO SHOW THE PUBLIC WE ARE BUILDING OUR FUTURE SAYS WENDELIN WIEDEKING A MEMBER OF PORSCHE'S EXECUTIVE BOARD IN STUTTGART GERMANY MITSUBISHI MOTORS CORP INTRODUCED ITS REDESIGNED GALANT MIDSIZED SEDAN TOUTING IT AS BIGGER YET LESS EXPENSIVE THAN THE HONDA ACCORD AND TOYOTA CAMRY MEANWHILE HYUNDAI MOTOR CO INTRODUCED THE HCDII IN HOPES THAT THE SLICK SPORTS CAR WOULD HELP BOOST THE COMPANY'S LACKLUSTER IMAGE YOU CHANGE YOUR IMAGE ONE CAR AT A TIME THE AUTO MAKER SAYS THE CHRYSLER THUNDERBOLT CONCEPT CAR WAS ALSO SHOWN IN DETROIT THE LUXURY COUPE IS DESIGNED WITH CHRYSLER'S CAB FORWARD STYLING WHICH PLACES THE WHEELS AT THE CORNERS THE THUNDERBOLT SPORTS A V8 ENGINE RATED AT 270 HORSEPOWER DETROIT SHOW PROMOTERS ALSO SCHEDULED EVENTS LIKE GOLF CLINICS AND BOXING EXHIBITIONS IN THE BASEMENT OF COBO HALL WE SET OUT TO RECREATE THE PERCEPTION OF DETROIT AS THE CENTER OF THE CAR BUSINESS SAYS MR HAYES TO SOME EXTENT WE'RE NOT IN COMPETITION WITH THE OTHER US SHOWS THEY'RE NICE REGIONAL SHOWS LIKE WE USED TO BE 9301080096 930108 INTERNATIONAL CITIBANK RIDES INDIA'S UPS AND DOWNS STOCKSCANDAL ALLEGATIONS FOLLOW A SKILLFUL EXPANSION BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA CITIBANK'S IMAGE IN INDIA HAS BEEN TARNISHED BY RECENT FINANCIAL SCANDALS YET ITS AGGRESSIVE APPROACH TO BUSINESS HAS COME TO SYMBOLIZE NOT ONLY THE RISKS BUT ALSO THE BENEFITS OF THE ECONOMIC LIBERALIZATION BEING ATTEMPTED BY THIS VAST DEVELOPING COUNTRY BEFORE THE US BANK LEAPT IN TO TAKE ADVANTAGE OF INDIA'S ECONOMIC REFORMS BANKING IN INDIA WAS A PLODDING BUREAUCRATIC MORASS THERE WERE FEW AUTO LOANS HOME MORTGAGES WERE RARE CREDIT CARDS HARD TO COME BY WITH CORPORATE LENDING TIGHTLY REGULATED BANKS SAT ON THEIR MONEY BRIGHT YOUNG PROFESSIONALS DIDN'T GO INTO BANKING THEN CAME CITIBANK THE PRIMARY BANKING UNIT OF CITICORP WITH A TRACK RECORD OF INNOVATION IN FOREIGN MARKETS THOUGH THE NEW YORKBASED BANK HAS BEEN IN INDIA FOR 90 YEARS IT HAS REVOLUTIONIZED BANKING IN THE PAST SIX IT MADE TENS OF THOUSANDS OF AUTO LOANS AND OFFERED MORTGAGES IT ISSUED CREDIT CARDS TO 200000 MEMBERS OF INDIA'S MIDDLE CLASS IT BECAME A KEY LENDER AND FUND MANAGER FOR BLUECHIP COMPANIES IT EVEN CREATED A MARKET IN THE DRIEST OF FINANCIAL INSTRUMENTS THE RESERVES THAT INDIA'S UBIQUITOUS REGULATORS REQUIRE BANKS TO KEEP WITH ONLY SIX BRANCHES IN FOUR CITIES CITIBANK BY 1992 WAS THE MOST PROFITABLE BANK ON THE SUBCONTINENT UNIVERSITY GRADUATES CLAMORED FOR CITIBANK JOBS CITIBANK'S SMARTS WON IT LOYALTY AND CUSTOMERS AND A HAZE OF UGLY PUBLICITY THE BANK WAS ATTACKED FOR ITS QUICKPROFITS APPROACH AND CRUDE AUTO REPOSSESSIONS INCLUDING AT LEAST FIVE ATTEMPTS BY AGENTS TO SEIZE CARS FOR WHICH THE BANK HADN'T LENT MONEY AND WHEN A COMPLEX 13 BILLION STOCKMARKET SCANDAL BROKE LAST YEAR CITIBANK WAS ACCUSED BY POLITICIANS AND RIVALS OF FOSTERING BUSINESSES ON THE PERIMETERS OF THE LAW ONE SCANDAL VICTIM AND CITIBANK RIVAL STANDARD CHARTERED BANK OF BRITAIN HAS SUED NEW YORKBASED CITICORP IN THE US FOR MORE THAN 40 MILLION CHARGING THAT CITIBANK SOLD IT BANK RECEIPTS REPRESENTING BONDS THAT WERE NEVER DELIVERED THE REALITY IS WE'VE BEEN DEFRAUDED SAYS WILL MANSER A SPOKESMAN FOR STANDARD CHARTERED PLC WHICH TOOK PROVISIONS OF 100 MILLION 154 MILLION AGAINST LOSSES POSSIBLY EXCEEDING 300 MILLION FOR WHICH IT PARTLY BLAMES CITIBANK IT ALSO TOLD A FEDERAL COURT IN NEW YORK THAT BECAUSE OF THESE AND OTHER POTENTIAL LOSSES IT HAD TO INJECT A STAGGERING 800 MILLION IN NEW CAPITAL INTO ITS INDIAN BRANCHES LAST YEAR NOW THE FEDERAL RESERVE WHICH REGULATES CITIBANK SAYS IT WILL TAKE UP AN INVITATION FROM INDIAN REGULATORS TO REVIEW THE ROLE OF US BANKS IN BOMBAY WHICH GV RAMAKRISHNA CHAIRMAN OF INDIA'S SECURITIES AND EXCHANGE BOARD BELIEVES MERITS CLOSER SCRUTINY WE HAVE SOME INFORMATION THEY WILL FIND INTERESTING HE SAYS A SPOKESMAN IN WASHINGTON SAYS FED REPRESENTATIVES PLAN TO MEET WITH OFFICIALS IN INDIA IN THE RELATIVELY NEAR FUTURE CITIBANK WHICH SAYS IT HAS CONDUCTED A COMPLETE AUDIT OF ITS INDIAN OPERATIONS AND WILL COOPERATE FULLY WITH THE FED DENIES BREAKING ANY LAWS AND SAYS IT WILL FIGHT THE STANDARD CHARTERED LAWSUIT A SPOKESMAN SAYS THE BANK HAS PROVIDED FULL INFORMATION TO INDIAN INVESTIGATORS AND IS WORKING WITH THEM ON RESOLVING PROBLEMS PRIVATELY THOUGH CITIBANK EXECUTIVES SAY THEY MAY HAVE STRETCHED INDIA'S ARCANE LAWS IN THEIR QUEST TO HARVEST PROFITS IN A RIPE MARKET IN THE YEAR ENDED MARCH 31 1992 THE INDIAN OPERATION EARNED 446 MILLION AFTER TAXES UP FROM 296 MILLION A YEAR EARLIER WE WERE GOING IN THE GRAY AREAS SAYS A YOUNG CITIBANK EXECUTIVE BUT UNLESS YOU PUSH AGGRESSIVELY IN THE BEGINNING IT DOESN'T TAKE OFF CITIBANK'S TIMING IN INDIA WAS GOOD SINCE 1986 WHEN CITIBANK BEGAN ITS BIG PUSH THE COUNTRY HAS PURSUED AN INCREASINGLY REFORMIST PATH THE CURRENT CONGRESS PARTY GOVERNMENT OF PRIME MINISTER PV NARASIMHA RAO HAS MADE ECONOMIC LIBERALIZATION ITS HALLMARK CITIBANK'S MOST VISIBLE PUSH WAS IN CONSUMER BANKING MAKING AUTO AND HOME LOANS AND ISSUING CREDIT CARDS TAKING RISKS SOMETIMES THAT OTHER BANKERS SAY THEY WERE AFRAID TO THEY MARKET FIRST AND WORRY ABOUT CREDIT RISK LATER SAYS AN INDIAN BANKER THE US BANK ALSO PROVIDED SERVICES THAT COMPANIES WANTED FOR A FEE IT WOULD COLLECT REMITTANCES FOR A COMPANY'S CUSTOMERS AROUND THE COUNTRY IF WE DID THAT THROUGH STATE BANKS IT MIGHT TAKE WEEKS SAYS JAMSHYD N GODREJ MANAGING DIRECTOR OF BOMBAY CONGLOMERATE GODREJ & BOYCE MANUFACTURING CO THE TOP EXECUTIVE AT ANOTHER INDUSTRIAL GROUP SAYS THAT WHEN NEW DELHI RECENTLY LIBERALIZED FOREIGNEXCHANGE LAWS CITIBANK'S EFFICIENT HANDLING OF BIG TRANSACTIONS MADE IT THE ONLY CHOICE FOR US IT WON THAT LOYALTY BY SKILLFULLY TAKING ADVANTAGE OF THE COUNTRY'S LAWS REGULATIONS REQUIRE INDIAN BANKS TO MAKE EXTENSIVE LOANS TO SMALL COMPANIES AND RURAL ENTERPRISES LEAVING THEM WITH LITTLE MONEY TO LEND TO BLUECHIP COMPANIES FOREIGN BANKS LED BY CITIBANK RUSHED TO FILL THE VOID CITIBANK NOW CLAIMS AT LEAST 250 BIG COMPANIES AS STEADY CLIENTS BECAUSE OF THE SLOWNESS OF TRANSFERRING THE ACTUAL BONDS BANKS BEGAN TO TRADE RECEIPTS FOR THE BONDS PROMISING DELIVERY LATER IT WAS LIKE A FUTURES MARKET VOLUMES WERE HUGE THEN SOMEBODY BEGAN ISSUING RECEIPTS WITHOUT HAVING ANY ASSETS TO BACK THEM AND INDIAN INVESTIGATORS SAY OFTEN USING THE MONEY TO PLAY THE BOOMING STOCK MARKET THE FALSE RECEIPTS WERE TRADED AS ASSETS JUST AS GENUINE RECEIPTS WERE BUT THERE WERE NO LONGER ENOUGH BONDS TO REDEEM ALL THE RECEIPTS WHEN THE MUSIC STOPPED LAST YEAR THE GAP WAS 13 BILLION THOUGH THE FALSE RECEIPTS APPARENTLY FIGURE IN STANDARD CHARTERED'S LEGAL CLAIMS AGAINST CITIBANK CITIBANK SAYS NONE OF THE FALSE RECEIPTS WERE ON ITS BOOKS BUT DECLINES TO COMMENT FURTHER YET AN INVESTIGATION BY THE RESERVE BANK OF INDIA FOUND THAT TWOTHIRDS OF ALL INTERBANK SECURITIES TRANSACTIONS INVOLVED FOUR FOREIGN BANKS CITIBANK STANDARD CHARTERED ANZ GRINDLAYS PLC AND BANKAMERICA CORP CITIBANK ALONE HANDLED A QUARTER OF ALL BOND TRANSACTIONS BETWEEN APRIL 1 1991 AND MAY 23 1992 THE PERIOD WHEN MOST OF THE QUESTIONABLE TRANSACTIONS TOOK PLACE AT THE SAME TIME THE STOCK MARKET CRASHED MUCH OF THE MONEY THAT HAD SENT IT TO RECORD HIGHS IT TURNED OUT HAD BEEN LENT BY BANKS ON THE COLLATERAL OF BANK RECEIPTS OR PROMISES THAT COULDN'T BE FULFILLED UNDER INDIAN LAW LENDING FOR SHARE PURCHASES IS LIMITED WITHOUT SOME COLLATERAL BEYOND THE SECURITIES THEMSELVES THE STOCKMARKET CRASH HAS FUELED RUMORS THAT SOME BANKS INCLUDING CITIBANK MIGHT HAVE IMPROPERLY TRADED SHARES CITIBANK SAYS IT DID INVEST FOR LARGE CLIENTS BUT DENIES HAVING TRADED FOR ITS OWN ACCOUNT WHICH MIGHT BE A VIOLATION OF US LAW OR HAVING HELD CLIENTS' FUNDS FOR LESS THAN A YEAR WHICH WOULD VIOLATE INDIAN LAW BUT CITIBANK EMPLOYEES SAY THE BANK TOLD ITS CLIENTS WHAT KIND OF RETURNS THEY COULD EXPECT IF THEY LET THE BANK MANAGE THEIR MONEY IN THE STOCK MARKET A COPY OF A JAN 31 1992 LETTER WRITTEN BY A CITIBANK EXECUTIVE TO POWER FINANCE CORP SAYS WE FEEL THAT A PORTFOLIO WITH THE ABOVE MIX OF INVESTMENTS WOULD YIELD AROUND 1425 COMPOUNDED THIS YIELD IS NET OF ALL FEES AND OTHER CHARGES WE WOULD ALSO LIKE TO REITERATE THAT THE YIELD IS IN NO WAY GUARANTEED THAT LAST SENTENCE IS THEN CROSSED OUT AND THE WORD COMPOUNDED IS REPLACED WITH SEMIANNUAL COMPOUNDED A CITIBANK SPOKESMAN IN NEW YORK DECLINED TO COMMENT ON THE LETTER SUMAN DUBEY IN NEW DELHI CONTRIBUTED TO THIS ARTICLE 9301080095 930108 LAW LEGAL BEAT MEDICAL ADVANCES ARE CHANGING THE LEGAL DEFINITION OF MATERNITY BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL WHAT USED TO BE AMONG THE EASIEST LEGAL TERMS TO DEFINE MATERNITY IS BECOMING ONE OF THE TOUGHEST IN THE PAST COURTS FELT SAFE TO ASSUME THAT A WOMAN WHO GAVE BIRTH TO A CHILD WAS THE BIOLOGICAL MOTHER BUT ADVANCES IN INVITRO FERTILIZATION WITH SURROGATES USING ALREADY FERTILIZED EGGS HAVE RAISED A NOVEL QUESTION WHAT MATERNAL RIGHTS DO WOMEN HAVE IN INSTANCES WHERE THEY FURNISHED THE EGG BUT DIDN'T BEAR THE CHILD IN NEW YORK THE LATEST STATE WHERE THE QUESTION HAS REACHED A JUDGE THE ANSWER IS NONE NEW YORK FAMILY COURT JUDGE GUY P DEPHILLIPS RULED THIS WEEK THAT STATE LAW FOR DETERMINING PARENTHOOD RECOGNIZES ONLY PATERNITY AND MAKES NO PROVISION FOR GRANTING A MOTHER'S REQUEST FOR MATERNITY CLEARLY THE LEGISLATURE NEVER CONTEMPLATED THE POSSIBILITY OF THERE BEING A QUESTION OF MATERNITY BECAUSE THE RELATIONSHIP BETWEEN MOTHER AND CHILD WAS BIOLOGICALLY ESTABLISHED BY THE BIRTH OF THE CHILD JUDGE DEPHILLIPS SAID IN HIS DECISION THAT PREMISE NO LONGER HOLDS HE ACKNOWLEDGED BUT ANY CHANGE IN THE LAW TO RECOGNIZE THE SITUATION MUST COME FROM THE LEGISLATURE HE RULED NOT THE COURTS THE CASE IS UNUSUAL BECAUSE THERE IS LITTLE QUESTION THAT THE WOMAN SEEKING MATERNITY OF THE TWINS IS THE BIOLOGICAL OR GENETIC MOTHER GENETIC TESTING ESTABLISHED THAT THE PROBABILITY IS MORE THAN 99 THAT THE TWINS WERE CONCEIVED WITH HER EGGS RATHER THAN THOSE OF THE SURROGATE WHO CARRIED THE FERTILIZED EGGS TO TERM AND FAR FROM SEEKING CUSTODY OF THE TWINS THE SURROGATE GAVE THEM UP THREE DAYS AFTER THEY WERE BORN IN MAY SHE DOESN'T WANT LEGAL RESPONSIBILITY FOR THESE CHILDREN SAID NEW YORK ATTORNEY ROBIN A FLEISCHNER WHO REPRESENTS THE SURROGATE SHE DOESN'T VIEW THESE AS HER CHILDREN BUT UNDER NEW YORK LAW JUDGE DEPHILLIPS SAID THE TWINS STILL BELONG TO THE SURROGATE FOR THE BIOLOGICAL MOTHER THE PROBLEM WOULD BE COMPOUNDED IF THE SURROGATE CHANGED HER MIND AND DECIDED TO SEEK CUSTODY THAT'S WHY THIS IS SUCH AN IMPORTANT QUESTION SAID MS FLEISCHNER OTHER STATES' COURTS THAT HAVE ADDRESSED SUCH CASES HAVE RULED THE OTHER WAY IN FAIRFAX COUNTY VA LAST MONTH A JUDGE DECLARED THAT THE BIOLOGICAL MOTHER OF A CHILD BORNE BY A SURROGATE IS THE LEGAL MOTHER BUT THE DECISION FOLLOWED WEEKS OF LEGAL PROCEEDINGS THAT INCLUDED BLOOD TESTS OF THE BIOLOGICAL PARENTS TESTIMONY FROM THE GESTATIONAL HOST AND THE APPOINTMENT OF A LEGAL GUARDIAN TO REPRESENT THE CHILD IN THE PROCEEDINGS IN A SIMILAR RULING IN OCTOBER 1990 A CALIFORNIA STATE JUDGE DECLARED THAT OWING TO ADVANCES IN TECHNOLOGY CALIFORNIA LAW MUST RECOGNIZE THE DIFFERENCE BETWEEN THE BIRTH MOTHER AND THE LEGAL MOTHER THE JUDGE RULED THAT THE BIOLOGICAL MOTHER IS THE LEGAL MOTHER WHEN HER FERTILIZED EGG IS CARRIED BY A SURROGATE THE DECISION UPHELD ON APPEAL NOW IS BEING CHALLENGED BEFORE THE CALIFORNIA SUPREME COURT BY GROUPS OPPOSED TO SURROGACY SOME 20000 SURROGATE BIRTHS HAVE OCCURRED IN THIS COUNTRY OVER THE PAST 10 YEARS ACCORDING TO MEDICAL SPECIALISTS BUT IN MOST CASES THE MAN'S SPERM FERTILIZES THE SURROGATE MOTHER'S EGG THUS ESTABLISHING A GENETIC LINK BETWEEN THE SURROGATE MOTHER AND THE BABY THAT'S WHAT HAPPENED IN THE FAMOUS BABY M CASE IN NEW JERSEY MARY BETH WHITEHEAD THE SURROGATE AND BIOLOGICAL MOTHER IN THAT CASE CHANGED HER MIND ABOUT GIVING UP THE CHILD AFTER THE BABY WAS BORN AND SHE FOUGHT UNSUCCESSFULLY FOR FULL CUSTODY IN THE MORE RECENT CASES OF INVITRO FERTILIZATION HOWEVER THE SURROGATE MOTHER AND CHILD ARE LINKED LEGALLY THOUGH NOT GENETICALLY UNDER MOST STATES' LAWS ADDING A NEW COMPLEXITY TO A PRACTICE THAT IS ALREADY CONTROVERSIAL GROUPS OPPOSED TO SURROGACY SAY THE COMMERCIAL ARRANGEMENTS EXPLOIT POOR WOMEN AND TREAT BABIES AS COMMODITIES ONLY 15 STATES HAVE LAWS DEALING WITH SURROGATE BIRTHS SOME RESTRICT SURROGATE ARRANGEMENTS AND OTHERS PROHIBIT COMMERCIAL SURROGATE CONTRACTS ALTOGETHER SAID LORI ANDREWS A SPECIALIST ON SURROGACY ISSUES WITH THE AMERICAN BAR FOUNDATION THE RESEARCH ARM OF THE AMERICAN BAR ASSOCIATION SURROGACY INCREASINGLY IS BEING ADDRESSED BY STATE LEGISLATURES THOUGH IN ONE WAY OR ANOTHER VIRGINIA PASSED A LAW LAST YEAR ALLOWING WOULDBE PARENTS AND UNPAID SURROGATES TO PRESENT A CONTRACT TO A JUDGE BEFORE PREGNANCY TO OBTAIN COURT ORDERS DECLARING THE YETTOBE BORN BABY THE LEGAL OFFSPRING OF THE PARENTS THE LAW TAKES EFFECT IN JULY AND TWO OTHER STATES FLORIDA AND NEW HAMPSHIREREGULATE SURROGACY TO SCREEN WOULDBE PARENTS AND SURROGATES NEW YORK ON THE OTHER HAND PASSED A LAW LAST YEAR DECLARING SURROGACY CONTRACTS VOID MAKING THEM UNENFORCEABLE IN COURT THE NEW LAW WHICH WASN'T AN ISSUE IN THE CASE BEFORE JUDGE DEPHILLIPS TAKES EFFECT IN JULY JUDGE DEPHILLIPS RULED THAT THE BIOLOGICAL PARENTS STILL HAVE THE OPTION TO ADOPT THE BABY FROM THE SURROGATE BUT LAURIE B GREENBERG A PEARL RIVER NY ATTORNEY REPRESENTING THE BIOLOGICAL MOTHER SAID THE COUPLE IS CONSIDERING ADOPTION ONLY AS LAST RESORT THEY PLAN TO APPEAL JUDGE DEPHILLIPS'S DECISION ON THE GROUND THAT NEW YORK LAW BY RECOGNIZING CLAIMS OF PATERNITY BUT NOT MATERNITY DISCRIMINATES AGAINST WOMEN FAMILY COURT OF THE STATE OF NEW YORK QUEENS DOCKET NO THE PLEA AGREEMENT OF PAUL MOZER FORMER HEAD OF SALOMON BROTHERS INC'S GOVERNMENT SECURITIES TRADING DESK WILL BE OVERSEEN BY THE SAME FEDERAL JUDGE PRESIDING OVER THE MASSIVE CIVIL LITIGATION STEMMING FROM SALOMON'S TREASURY AUCTION SCANDAL JUDGE ROBERT P PATTERSON JR IN NEW YORK WAS ASSIGNED THE CASE AFTER MR MOZER MADE HIS FIRST APPEARANCE IN COURT THE JUDGE SCHEDULED A MONDAY HEARING AT WHICH MR MOZER IS EXPECTED TO PLEAD GUILTY TO TWO FELONY COUNTS OF MAKING FALSE STATEMENTS TO TREASURY OFFICIALS MR MOZER'S ATTORNEYS AND PROSECUTORS HAVE AGREED TO ASK THE JUDGE TO HOLD A SPECIAL SENTENCING HEARING TO DETERMINE HOW MUCH IN LOSSES MR MOZER'S ALLEGED MISCONDUCT CAUSED INVESTORS AND OTHER TRADING FIRMS THAT HEARING COULD BE CRITICAL IN DETERMINING WHETHER MR MOZER ALLEGEDLY THE CENTRAL FIGURE BEHIND THE FALSIFIED BIDS AT THE SALOMON INC UNIT WILL FACE ANY PRISON TIME MR MOZER'S ATTORNEYS MAINTAIN THAT HIS ACTIONS CAUSED NO LOSSES JULES BRODY A PLAINTIFFS' LAWYER REPRESENTING TREASURYBILL PURCHASERS IN THE SALOMON CIVIL LITIGATION SAID THE LOSS HEARING COULD ALSO AFFECT THE CIVIL CASES WHERE DETERMINING DAMAGES FROM THE ALLEGED MISCONDUCT ALSO IS AN IMPORTANT AND CONTROVERSIAL ISSUE MR BRODY NOTED THAT MR MOZER FACES CRIMINAL CHARGES IN CONNECTION WITH THE FEB 21 1991 AUCTION RATHER THAN THE MAY 22 1991 AUCTION WHERE THE REAL SQUEEZE TOOK PLACE THE SECURITIES AND EXCHANGE COMMISSION IN ITS CIVIL SUIT ACCUSED MR MOZER OF FALSIFYING BIDS IN EIGHT AUCTIONS HOWARD HEISS THE ASSISTANT US ATTORNEY IN NEW YORK IN CHARGE OF SECURITIES PROSECUTIONS DECLINED TO COMMENT ON WHY MR MOZER WAS CHARGED ONLY IN CONNECTION WITH THE FEBRUARY AUCTION A FEDERAL APPEALS COURT SAID BIBLE GIVEAWAYS AT A PUBLIC SCHOOL ARE UNCONSTITUTIONAL REVERSING A LOWERCOURT DECISION A US DISTRICT JUDGE RULED LAST YEAR THAT BANNING GIDEONS INTERNATIONAL FROM DISTRIBUTING BIBLES AT THE SCHOOL IN RENSSELAER IND WOULD INFRINGE ON THE GIDEONS' FREESPEECH RIGHTS BUT THE SEVENTH US CIRCUIT COURT OF APPEALS IN CHICAGO DISAGREED SAYING THAT THE FREESPEECH ARGUMENT DIDN'T APPLY BECAUSE THE SCHOOLS WEREN'T TRULY OPEN FORUMS THE APPELLATE PANEL ALSO SAID THAT BECAUSE THE GIDEONS VISITED A CAPTIVE CLASSROOM AUDIENCE THE GIVEAWAYS VIOLATED THE CONSTITUTIONAL BAN ON ESTABLISHING A STATE RELIGION JOHN R PRICE A LAWYER IN INDIANAPOLIS FOR THE SCHOOLS WHICH APPROVED THE BIBLE DISTRIBUTION SAID HIS CLIENT IS LIKELY TO SEEK A REHEARING BEFORE THE FULL APPEALS COURT OR A REVIEW BY THE US SUPREME COURT WHO'S NEWS FORMER REP DENNIS ECKART D OHIO WHO RETIRED FROM CONGRESS LAST MONTH JOINED THE LAW FIRM WINSTON & STRAWN AS A PARTNER HE WILL WORK IN THE CHICAGOBASED FIRM'S WASHINGTON OFFICE VINSON & ELKINS SAID FORMER TEXAS STATE DISTRICT JUDGE JOHN H KYLES AND FORMER TEXAS APPEALS COURT JUDGE GAYNELLE GRIFFIN JONES JOINED THE FIRM AS OF COUNSEL A NONPARTNER POSITION THE HOUSTONBASED FIRM HAS MORE THAN 540 LAWYERS KILL FEE WHAT THE JUDGE GIVETH HE CAN TAKETH AWAY JUDGE MORRIS E LASKER SAID HE ERRED IN AWARDING GORDON LISH 2000 IN HIS COPYRIGHT DISPUTE WITH HARPER'S MAGAZINE JUDGE LASKER SAID THE NOTED AUTHOR AND EDITOR WASN'T ENTITLED TO ANY DAMAGES DESPITE A FINDING THAT HARPER'S HAD INFRINGED ON MR LISH'S COPYRIGHT BY PRINTING PART OF A LETTER SENT TO PROSPECTIVE WRITING STUDENTS THE JUDGE IN FEDERAL COURT IN NEW YORK SAID THE INFRINGEMENT DIDN'T CAUSE MR LISH ANY ECONOMIC HARM JONATHAN M MOSES CONTRIBUTED TO THIS COLUMN 9301080094 930108 IRAQI REACTION ON MISSILE RIFT IS AMBIGUOUS SHIFT IN ANTIAIRCRAFT ARMS FOLLOWS AN ULTIMATUM THAT RUNS OUT TODAY BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IRAQ HAS BEEN MOVING THE ANTIAIRCRAFT MISSILES THE US THREATENED TO ATTACK BUT IT ISN'T CLEAR WHETHER THEY ARE BEING REMOVED FROM THE SCENE OR MERELY SHIFTED TO MAKE THEM HARDER TO FIND AS A RESULT OFFICIALS HERE CAN'T SAY FOR NOW WHETHER IRAQ IS COMPLYING WITH THIS WEEK'S DEMAND FROM THE US AND ITS ALLIES THAT IT REMOVE THE MISSILES FROM SOUTHERN IRAQ MEANWHILE IRAQ GAVE AN AMBIGUOUS REPLY TO THE ULTIMATUM DECLARING THAT IT RESERVES THE RIGHT TO MOVE ITS PLANES AND MISSILES ANYWHERE IN ITS TERRITORY WITHOUT SPECIFICALLY REFUSING TO MOVE THE MISSILES OUT OF A DISPUTED ZONE IRAQ'S UNITED NATIONS AMBASSADOR NIZAR HAMDOON DELIVERED THE REPLY TO THE US FRANCE BRITAIN AND RUSSIA AT THE UN AFTERWARD HE TOLD REPORTERS IRAQ HAS DECIDED NOT TO GIVE UP THE RIGHT TO MOVE ITS MATERIEL WHERE IT PLEASES BUT SAID HE WASN'T SPECIFICALLY ADDRESSING THE SUBJECT OF THE MISSILES THE TWODAY DEADLINE IRAQ WAS GIVEN TO MOVE THE SURFACETOAIR MISSILES EXPIRES TODAY THOUGH THE US WOULDN'T NECESSARILY ATTACK IMMEDIATELY EVEN IF THERE IS CERTAINTY THAT IRAQ HASN'T COMPLIED SOME US OFFICIALS SAID THEY DIDN'T YET SEE ANY CLEAR SIGNS IRAQ WILL BACK DOWN I DON'T KNOW OF ANYTHING TO SUGGEST THE CONFRONTATION IS OVER SAID A SENIOR BUSH ADMINISTRATION AIDE BUT OTHER OFFICIALS SAID THERE IS UNCERTAINTY BECAUSE THE US HAS OBSERVED MOVEMENTS OF THE IRAQI MISSILES THAT ARE AT THE HEART OF THE CURRENT DISPUTE THE ANTIAIRCRAFT MISSILES CONSIST OF ONE BATTERY OF SOVIETMADE SAM 2 AND SEVERAL BATTERIES OF SAM 3 MISSILES AFTER THE US LAST MONTH SHOT DOWN A JET IN A PORTION OF SOUTHERN IRAQ THAT WAS DECLARED OFFLIMITS FOR IRAQI AIRCRAFT THE MISSILES WERE MOVED INTO THE SOUTHERN REGION AND ACTIVATED THE MISSILES ARE MOBILE MEANING THAT THEY CAN BE TAKEN DOWN AND TRUCKED TO NEW LOCATIONS IN A MATTER OF HOURS AND US ANALYSTS SAY THEY RECENTLY HAVE OBSERVED MISSILE BATTERIES BEING REMOVED FROM THE THE SITES THEY ORIGINALLY OCCUPIED IN SOUTHERN IRAQ ONLY TO REAPPEAR JUST A FEW MILES AWAY AT THE MOMENT THE ANALYSTS SAY IT ISN'T CLEAR WHETHER MISSILES THAT HAVE BEEN MOVED WILL BE TAKEN OUT OF SOUTHERN IRAQ OR WILL BE PLACED AT NEW SITES IN THE REGION IN DESCRIBING IRAQ'S OFFICIAL REPLY TO THE USLED ULTIMATUM MR HAMDOON AT THE UN AVOIDED SAYING PRECISELY WHAT IRAQ INTENDS TO DO BUT BY STRESSING ONLY IRAQ'S ASSERTION OF ITS RIGHT IN PRINCIPLE TO MOVE EQUIPMENT AS IT PLEASES HE SEEMED TO BE LEAVING THE DOOR OPEN TO BACKING DOWN IN THIS SPECIFIC ARGUMENT THE IRAQI RESPONSE WAS FOCUSED ON THE IRAQI RIGHT OF SOVEREIGNTY IN MOVING ITS CIVILIAN AND MILITARY MATERIAL WITHIN THE SPACE AND WITHIN THE TERRITORY OF THE COUNTRY MR HAMDOON SAID AND IRAQ HAS DECIDED NOT TO GIVE UP THAT RIGHT MR HAMDOON ALSO INVITED A US CONGRESSIONAL DELEGATION TO VISIT IRAQ TO LOOK INTO THE DISPUTE BUT THAT PROPOSAL IS LIKELY TO BE GREETED COOLLY BOTH IN THE WHITE HOUSE AND ON CAPITOL HILL IN BOTH PLACES IT IS LIKELY TO BE SEEN AS A PROPAGANDA PLOY AND AN ATTEMPT TO DIVIDE THE US GOVERNMENT OVER THE QUESTION OF TOUGHNESS TOWARD IRAQ DEMOCRATIC LAWMAKERS AND PRESIDENTELECT CLINTON HAVE TAKEN PAINS TO SHOW THEY ARE STANDING BEHIND PRESIDENT BUSH IN THIS CONFRONTATION IN ANY EVENT IT ISN'T JUST THE ANTIAIRCRAFTMISSILE ISSUE THAT HAS PRECIPITATED THE LATEST CONFRONTATION US OFFICIALS STRESS THAT THEY ARE ANGERED BY A SERIES OF RECENT DEFIANT IRAQI ACTIONS INCLUDING THE BOMBING OF VEHICLES USED BY UN WORKERS INTRUSIONS IN SOUTHERN IRAQ BY WARPLANES AND IRAQ'S REFUSAL TO ACCEPT A NEWLY DEMARCATED BORDER WITH KUWAIT AS A RESULT US OFFICIALS WILL HAVE BROADER MOTIVES IF THEY DECIDE TO TAKE ANY MILITARY ACTION IN RESPONSE TO THE DISPUTE OVER THE ANTIAIRCRAFT MISSILES EVEN IF THERE IS UNCERTAINTY ABOUT IRAQI COMPLIANCE WITH THE DEMAND TO MOVE THE MISSILES PRESIDENT BUSH MAY DECIDE THAT HE HAS AMPLE REASONS TO ACT ANYWAY MOREOVER EVEN IF THE TENSION EBBS FOR NOW MR CLINTON WILL INHERIT A RECENT PATTERN OF PROVOCATIVE AND UNRATIVE IRAQI BEHAVIOR AND MAY HAVE TO DECIDE WHEN HE WANTS TO ACT TO SHOW HE WON'T TOLERATE IT IN PARTICULAR THERE IS GROWING TENSION IN NORTHERN IRAQ AS WELL OVER NEW PRESSURE THAT SADDAM HUSSEIN'S REGIME IS EXERTING ON KURDS THERE FOR PRESIDENT BUSH THE FLAREUP COMES ALMOST PRECISELY TWO YEARS AFTER HE LAUNCHED A WAR TO DRIVE IRAQI FORCES OUT OF KUWAIT THAT WAR STARTED IN MIDJANUARY 1991 AND IT WAS WIDELY PREDICTED THAT SADDAM HUSSEIN WOULD FALL SOON AFTERWARDS THE CURRENT CONFRONTATION RAISES THE POSSIBILITY THAT PRESIDENT BUSH MAY HAVE AN OPPORTUNITY FOR ONE LAST SWIPE AT HIS IRAQI NEMESIS BEFORE LEAVING OFFICE 9301080093 930108 STOCK PICKERS FAVORING SMALL FIRMS WERE TOP MONEY MANAGERS IN 1992 BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PICKERS WHO FERRET OUT THE HOTTEST SMALL COMPANIES BEFORE THE CROWD DOMINATED THE RANKINGS OF LAST YEAR'S TOPPERFORMING MONEY MANAGERS THE EXTRA JOLT FROM FASTRISING SMALLCOMPANY GROWTH STOCKS ALSO HELPED THE AVERAGE MONEY MANAGER OUTPERFORM THE STANDARD & POOR'S CORP 500STOCK INDEX WHICH IS HEAVILY WEIGHTED WITH THE LARGEST COMPANIES IN 1992 FOR THE SECOND YEAR IN A ROW ACCORDING TO CDA INVESTMENT TECHNOLOGIES INC CDA'S SURVEY OF 578 MONEY MANAGERS SHOWED THEY PRODUCED AN AVERAGE TOTAL RETURN INCLUDING STOCKPRICE GAINS AND DIVIDENDS OF 94 IN 1992 COMPARED WITH 76 FOR THE BENCHMARK S&P 500 THE ROCKVILLE MD DATA COMPANY CALCULATES THE RESULTS BASED ON THE MANAGERS' DISCLOSED STOCK HOLDINGS AT THE START OF EACH QUARTER BUT WITHOUT ACCOUNTING FOR SUBSEQUENT TRADING OR CASH HELD WITHOUT BEING INVESTED NOT SURPRISINGLY THE CHARTTOPPING SMALLSTOCK JOCKEYS BELIEVE THE SMALLSTOCK RALLY WILL CONTINUE GERALD KENNEDY PRESIDENT OF KENNEDY CAPITAL MANAGEMENT INC THE TOPPERFORMING MONEY MANAGER LAST YEAR SAYS HE IS VERY OPTIMISTIC BECAUSE SHORTTERM INTEREST RATES REMAIN LOW AT 11 TIMES THE DIVIDEND YIELD ON STOCKS HE SAYS A RATIO BELOW 15 IS BULLISH OVER 25 BEARISH ALSO HE SAYS MONEY IS FREEING UP ALTHOUGH CDA REPORTED A 524 RETURN FOR KENNEDY CAPITAL IN 1992 MR KENNEDY SAID THE ACTUAL TOTAL WAS A STILL HEFTY 41 THE ST LOUIS FIRM WHICH MANAGES 150 MILLION AND LOOKS FOR SMALL STOCKS WITH FASTRISING EARNINGS SELLING AT LOW PRICES SCORED BIG WITH FREEPORTMCMORAN COPPER & GOLD INC JACK HENRY & ASSOCIATES INC WHICH MAKES BANKING SOFTWARE AND MOBILE AMERICA CORP WHICH SELLS AUTO LIABILITY INSURANCE IN FLORIDA CDA'S TOPPERFORMING MANAGER FOR THE FOURTH QUARTER OF 1992 KOPP INVESTMENT ADVISERS INC OWNED ONE MILLION SHARES OF DSC COMMUNICATIONS CORP A TELECOMMUNICATIONS EQUIPMENT MAKER WHICH ROSE A STAGGERING 468 LAST YEAR ONE OF THE TOP GAINERS ON ANY EXCHANGE LEE KOPP PRESIDENT OF THE MINNEAPOLIS FIRM WHICH MANAGES 270 MILLION SAID ITS ACTUAL FOURTHQUARTER RETURN WAS ABOUT 31 COMPARED WITH 364 ESTIMATED BY CDA WE FEEL THAT CONSUMER CONFIDENCE IS BEING RESTORED SAVINGS RATES ARE REALLY IMPROVING AND THE JOB MARKET LOOKS BETTER MR KOPP SAID HIS FIRM WHICH LOOKS FOR SMALL AND MEDIUMSIZE GROWTH COMPANIES PARTICULARLY IN THE MIDWEST IS MAKING SELECTIVE NEW BETS ON MIDSIZED RETAILERS LIKE DAYTON HUDSON CORP AND NORDSTROM INC SOME SMALLSTOCK MANAGERS HAD TO WAIT A LONG TIME FOR THEIR DAY IN THE SUN CARL HATHAWAY PRESIDENT OF HATHAWAY & ASSOCIATES IN ROWAYTON CONN WHICH FINISHED SECOND IN THE FOURTHQUARTER RANKINGS WITH A RETURN OF 362 SAID THREE OF HIS FIVE PRINCIPAL CLIENTS FIRED THE FIRM DURING THE 1980S WHEN EMERGING GROWTH STOCKS WERE OUT OF FAVOR HIS FIRM MANAGES ABOUT 200 MILLION MR HATHAWAY'S LARGEST HOLDING LAST YEAR WAS SYNOPTICS COMMUNICATIONS INC WHICH ADAPTS CONVENTIONAL PHONE LINES TO LOCAL AREA NETWORKS AND WHOSE STOCK GAINED 285 IN 1992 WITH OVERTHECOUNTER STOCKS BEATING THE BROADER MARKET AVERAGES BY ABOUT 10 PERCENTAGE POINTS LAST YEAR HE SAYS THIS IS A GOOD ENVIRONMENT FOR US HE SAID SMALL STOCKS ARE BENEFITING FROM THE STRONG BELIEF THAT THE CLINTON ADMINISTRATION WOULD PRODUCE TAX AND FISCAL MEASURES WHICH MIGHT HELP SMALL COMPANIES AND STIMULATE EMPLOYMENT AND GROWTH MR HATHAWAY SAYS HE RELIES ON SMALL REGIONAL BROKERAGE FIRMS TO POINT HIM TOWARDS FASTGROWING SMALL COMPANIES BEFORE OTHER INVESTORS FIND THEM IF A MAJOR WALL STREET FIRM FINDS IT BEFORE US IT'S ALREADY RECOGNIZED WILLIAM MARTINDALE CHIEF STOCK PICKER FOR MARTINDALE ANDRES & CO IN WEST CONSHOHOCKEN PA THE TOP PERFORMER FOR THE THREE YEARS ENDED IN 1992 SAID HIS 60 MILLION STOCK PORTFOLIO BENEFITED FROM THREE HOLDINGS UNIFI INC A TEXTILE COMPANY GENESIS HEALTH VENTURES INC AND RAVEN INDUSTRIES INC WHICH SELLS BALLOONS PLASTICS AND SPORTSWEAR THIS YEAR MR MARTINDALE PREDICTS THE MOMENTUM OF INVESTMENT CAPITAL WILL CONTINUE TO SHIFT TOWARD MID AND SMALLERCAP COMPANIES SO THAT THE AREA WILL REMAIN DYNAMIC BUT BASED ON HOW EACH COMPANY IS DOING HIS 1993 PICKS INCLUDE PSC INC WHICH MAKES BARCODE SCANNERS AND PICTURETEL CORP A VIDEOCONFERENCING COMPANY ROBERT ZUCCARO PRESIDENT OF TARGET INVESTORS INC IN WILTON CONN A SMALLSTOCK MANAGER WITH 400 MILLION IN ASSETS THAT FINISHED SECOND IN CDA'S THREEYEAR RANKINGS ALSO PREDICTS THAT SMALL STOCKS WILL KEEP OUTPERFORMING THE BROAD MARKET ONE REASON HE SAYS IS THAT THE EARNINGS OF LARGE COMPANIES WILL BE WEIGHED DOWN THIS YEAR BY CHARGES NEEDED TO REFLECT THE FUTURE COST OF RETIREE HEALTHCARE BENEFITS TARGET'S 1992 PERFORMANCE WAS AIDED BY THREE HEALTH MAINTENANCE ORGANIZATIONS FOUNDATION HEALTH CORP PACIFICARE HEALTH SYSTEMS INC AND HEALTHSOURCE INC FOR 1993 MR ZUCCARO IS LOOKING TOWARD MORE ECONOMICALLY SENSITIVE COMPANIES SUCH AS HOMEBUILDER CENTEX CORP AND HOME MORTGAGE INSURERS MGIC INVESTMENT CORP AND CMAC INVESTMENT CORP IN 1993 THE CYCLICAL GROWTH COMPANIES WILL LEAD THE MOVE HE SAYS 9301080092 930108 OTC FOCUS COMPOSITE INDEX TUMBLES IN LAST HOUR FALLS 364 POINTS OR 053 ON THE DAY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS SLUMPED IN THE LAST HOUR UNDER PRESSURE FROM TUMBLING BOND PRICES MORE THAN CANCELING OUT THEIR SUBSTANTIAL MORNING GAINS THE NASDAQ COMPOSITE INDEX FELL 364 OR 053 TO 67821 DECLINERS OUTNUMBERED ADVANCERS 1329 TO 1257 ON TOTAL VOLUME OF 2969 MILLION SHARES UP FROM WEDNESDAY'S 270 MILLION SHARES THE SELLOFF CAME AFTER THE INDEX PEAKED AT A RECORD 68537 UP 352 POINTS ON THE DAY DESPITE THE LATE AFTERNOON DIVE SHARES OF THE GIANT SEMICONDUCTOR COMPANY INTEL CLOSED UP 1 AT 99 5/8 GIVING THE STOCK A THREEDAY GAIN OF 15 MONEY MANAGERS RUSHED TO ADD LARGE BLOCKS OF INTEL TO THEIR PORTFOLIOS AS THEY SHIFTED OUT OF INTERNATIONAL BUSINESS MACHINES WHICH DROPPED 1 TO 47 ON THE BIG BOARD THE MARKET'S MOST ACTIVE STOCK WITH 83 MILLION SHARES TRADED INTEL TRADED AS HIGH AS 103 DURING THE DAY I'M OBVIOUSLY VERY HAPPY SAID DANIEL LEONARD MANAGER OF INVESCO FUNDS GROUPS' FINANCIAL STRATEGIC PORTFOLIO TECHNOLOGY FUND IN DENVER I BOUGHT THE STOCK AT 50 IN THE SUMMER AND IT IS ONE OF MY LARGEST HOLDINGS MR LEONARD SAID HE DECIDED TO JUST HOLD ON TO HIS SHARES FOR A WHILE INTEL IS A BIG BLUE CHIP OF THE TECHNOLOGY STOCKS THAT EVERYBODY SHOULD OWN HE SAID I'M NOT GOING TO SELL IT NOW THE STOCK STILL HAS ROOM TO GO UP THE AFTERNOON'S MARKET DROP WAS ACCELERATED BY PROFITTAKING AND COMPUTERDRIVEN SELL PROGRAMS TRADERS SAID MANY OF THE TECHNOLOGY STOCKS FELL AFTER THEIR WEDNESDAY RISES CISCO SYSTEMS TOPPLED 1 5/8 TO 80 1/2 MICROSOFT FELL 1 3/4 TO 87 1/4 AND APPLE COMPUTER EASED 3/4 TO 61 THE STOCKS ARE AT TERRIBLY ELEVATED LEVELS AND WE ARE STARTING TO SEE INVESTORS TAKE SOME PROFITS SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO IN SAN FRANCISCO ONE OF 1992'S HOTTEST NEW STOCKS NETWORTH A COMPUTER NETWORKING COMPANY DROPPED 2 1/2 TO 31 AFTER ITS LEAD UNDERWRITER ROBERTSON STEPHENS & CO CUT ITS REVENUE FORECAST FOR THE IRVING TEXAS COMPANY'S SECOND QUARTER AND FULL YEAR FOR THE SECOND QUARTER ENDED DEC 31 ROBERTSON'S ANALYST JOHN POWERS LOWERED HIS REVENUE ESTIMATE TO 77 MILLION FROM 79 MILLION FOR THE FULL YEAR HE LOWERED HIS ESTIMATE TO 328 MILLION FROM 336 MILLION THE ANALYST MAINTAINED HIS EARNINGS ESTIMATE OF 14 CENTS A SHARE FOR THE SECOND QUARTER AND OF 73 CENTS A SHARE FOR THE FULL YEAR NETWORTH WHICH WENT PUBLIC AT 16 A SHARE ON NOV 25 DOUBLED TO 32 ON ITS FIRST TRADING DAY SHARES OF SEVERAL RETAILERS DEFIED THE MARKET'S TREND AFTER A POSITIVE HOLIDAY SHOPPING SEASON TRANSLATED INTO GOOD SALES RESULTS THE GAINERS INCLUDED BONTON STORES WHICH ADDED 1 1/4 TO 8 THE YORK PA DEPARTMENT STORE OPERATOR SAID SALES FOR THE FIVE WEEKS ENDED JAN 2 TOTALED 658 MILLION UP 185 FROM 555 MILLION A YEAR AGO SAMESTORE SALES OR SALES IN STORES OPEN A YEAR AGO ROSE 66 NATURAL WONDERS BASED IN UNION CITY CALIF THE RETAILER OF NATURE AND SCIENCE PRODUCTS SAID SALES FOR THE FIVEWEEK PERIOD ENDED JAN 2 INCREASED 502 TO 333 MILLION FROM 222 MILLION COMPARABLESTORE SALES IN DECEMBER GREW 43 THE STOCK ROSE 1 1/4 TO 21 1/4 CATHERINES STORES WHICH JUMPED 1 TO 20 1/4 THE MEMPHIS TENN WOMEN'S APPAREL CHAIN SAID ITS SAMESTORE SALES FOR THE FIVE WEEKS ENDED JAN 2 INCREASED 107 TOTAL SALES WERE 263 MILLION UP 844 ROSS STORES WHICH GAINED 3/4 TO 20 7/8 THE NEWARK CALIFBASED OFFPRICE APPAREL VENDOR SAID COMPARABLESTORES SALES FOR THE FIVE WEEKS ENDED JAN 2 ROSE 8 TOTAL SALES WERE 174 MILLION AN 18 INCREASE AN EARLY SPATE OF QUARTERLY EARNINGS REPORTS MEANWHILE TURNED OUT TO BE MIXED STATEOMAINE ROSE 3/4 TO 17 THE NEW YORK CITY APPAREL MAKER POSTED A THIRDQUARTER PROFIT OF 55 CENTS A SHARE OR 43 MILLION THAT COMPARES WITH NET INCOME OF 43 CENTS A SHARE OR 32 MILLION A YEAR EARLIER CHERRY CORP WAS UP 2 3/4 TO 29 3/4 AFTER THE WAUKEGAN ILL ELECTRONIC DEVICES MAKER REPORTED THIRDQUARTER NET INCOME OF 59 CENTS A SHARE OR 27 MILLION COMPARED WITH YEAREARLIER EARNINGS OF 12 CENTS A SHARE OR 544000 HELEN OF TROY SLID 3/4 TO 16 3/4 THE EL PASO TEXAS HAIR PRODUCTS MARKETER REPORTED THIRDQUARTER NET OF 55 CENTS A SHARE OR 41 MILLION COMPARED WITH YEAREARLIER NET OF 47 CENTS A SHARE OR 33 MILLION ANALYSTS WERE EXPECTING SLIGHTLY HIGHER PERSHARE EARNINGS TCA CABLE TV FELL 1/4 TO 22 1/4 THE TYLER TEXAS CABLE TELEVISION SYSTEMS DEVELOPER SAID IT HAD NET INCOME OF 15 CENTS A SHARE OR 38 MILLION IN ITS FISCAL FOURTH QUARTER LAST YEAR IT RECORDED NET OF 10 CENTS A SHARE OR 23 MILLION MEANWHILE SYMIX SYSTEMS TUMBLED 2 1/2 TO 12 1/2 AFTER THE COLUMBUS OHIO SOFTWARE DEVELOPER SAID IT EXPECTS EARNINGS FOR THE SECOND QUARTER ENDED DEC 31 TO FALL IN THE RANGE OF FIVE CENTS TO SEVEN CENTS FROM THE YEARAGO 28 CENTS ON A 20 DROP IN REVENUE THE COMPANY BLAMED DELAYED PURCHASES IN THE FINAL WEEKS OF THE QUARTER SOME OF WHICH WAS CAUSED BY ANTICIPATION OF AN INVESTMENTTAX CREDIT IN 1993 CHRISTOPHER ELLIOTT CONTRIBUTED TO THIS ARTICLE 9301080091 930108 THE MAKING OF A PROVEN VISIONARY IT ALL BEGAN WITH A LOAD OF BRICKS BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL ADD THIS TO BILL CLINTON'S LIST OF WORRIES SEIN MACDONALD SAYS THE PRESIDENTELECT WON'T LAST 18 MONTHS HE'LL START OFF GOOD BUT AFTER A WEE WHILE HE'LL FALL FROM GRACE THE SCOTTISH SHEPHERD PREDICTS THE PEOPLE WILL DEMAND A NEW ELECTION MR MACDONALD MAY NOT FULLY UNDERSTAND THE US POLITICAL SYSTEM WHICH LACKS BRITAIN'S PROVISION FOR SNAP ELECTIONS BUT THE HIGHLANDS SEER HAS A GOOD GRASP OF FUTURE SHOCKS LAST WEEK HE TOLD BBC SCOTTISH RADIO AND NEWSPAPERS THAT THERE WOULD BE A MAJOR OIL SPILL IN THE SHETLAND ISLANDS WHICH IN FACT HAPPENED AFTER A SHIP RAN AGROUND THERE TUESDAY I SAW THIS STORM AND I SAW THIS BIG HUGE SHIP DRIFTING ONTO THE ROCKS THEN OIL SPILLED EVERYWHERE MR MACDONALD SAYS DESCRIBING HIS VISION BY TELEPHONE FROM HIS STONE COTTAGE ON A REMOTE CROFT IN NORTHERN SCOTLAND I AM SORRY I HAD TO TELL THIS TO THE PEOPLE OF SHETLAND BUT THAT IS THE CURSE OF THE SECOND SIGHT MR MACDONALD BEGAN HAVING VISIONS AFTER A LOAD OF BRICKS FELL ON HIS HEAD DURING A JOB ACCIDENT 25 YEARS AGO NOW 61 HE CARRIES A NOTEBOOK IN THE FIELDS TO RECORD THE VISIONS THAT COME TO HIM WHILE SHIFTING SHEEP LAST YEAR HE PREDICTED THAT A MAJOR ROYAL MARRIAGE WOULD COLLAPSE IN FACT TWO DID AND HE SEES ANOTHER ANNUS HORRIBILIS IN 1993 EARTHQUAKE AND TIDAL WAVE IN FLORIDA HE PREDICTS A BAD SHAKE IN THE LONDON STOCK MARKET ABOUT MIDYEAR EVEN MORE OIL GUSHING ONTO THE SHETLANDS WHEN A VALVE BREAKS IN THE BEACHED SHIP FORCING PEOPLE TO EVACUATE TO THE ORKNEYS AND A GAS OR CHEMICAL ATTACK IN SOME EASTERN COUNTRY AND I DON'T LIKE THE LOOK OF THAT ONE SCOTTISH JOURNALISTS AT LEAST THINK IT MIGHT BE TIME TO GET OUT THE GAS MASKS ONE SAYS SHE OVERCAME HER CYNICISM WHEN THE SEER DESCRIBED EXACTLY WHAT SHE WAS THINKING ABOUT HER OWN FUTURE ANOTHER WAS WON OVER BY THIS YEAR'S OILSPILL PREDICTION