NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S TELECOMMUNICATIONS GIANT SAID
IT IS LIKELY TO SEE A FURTHER PROFIT DECLINE DURING THE NEXT FISCAL YEAR

PRESIDENT MASASHI KOJIMA PREDICTED THAT UNCONSOLIDATED PRETAX PROFIT FOR THE
FISCAL YEAR BEGINNING IN APRIL WILL BE 150 BILLION TO 200 BILLION YEN 12
BILLION TO 16 BILLION DOWN FROM AN EXPECTED 229 BILLION YEN FOR THE
CURRENT FISCAL YEAR

WITH NTT STRUGGLING TO MEET PRICE COMPETITION FROM COMPETITORS IN THE
DOMESTIC TELECOMMUNICATIONS MARKET PRETAX PROFIT FOR THE COMING YEAR COULD
BE CLOSER TO 150 BILLION YEN MR KOJIMA SAID

PRETAX PROFIT OF 229 BILLION YEN FOR THE CURRENT FISCAL YEAR WOULD BE A 35
DROP FROM A YEAR EARLIER AND WOULD MARK THE THIRD CONSECUTIVE YEAR OF
DECLINE

IN TRADING ON THE TOKYO EXCHANGE NTT SHARES DROPPED 8000 YEN TO 560000
YEN ON THE NEWS 9301080089 930108 BARCLAYS FACES TOUGH DECISION ON
ITS DIVIDEND  POSSIBILITY OF CUT IN WAKE OF BIG LOSS MAY SEND 
STOCK PRICE GYRATING  BY NICHOLAS BRAY STAFF REPORTER OF THE WALL
STREET JOURNAL

LONDON CAN BARCLAYS PLC HOLD ITS DIVIDEND

WITH A LOSS IN THE REGION OF 100 MILLION 1541 MILLION ESTIMATED AT
BRITAIN'S LARGEST CLEARING BANK IN 1992 THE QUESTION HAS BECOME THE NO1
ISSUE FACING ANDREW BUXTON ITS RECENTLY APPOINTED CHAIRMAN AND CHIEF
EXECUTIVE OFFICER

FOR INVESTORS IT POSES THE PROSPECT OF WILD GYRATIONS IN BARCLAYS'S SHARE
PRICE THE BANK'S SHARES THOUGH THEY HAVE RISEN IN RECENT WEEKS ARE BEING
HELD BACK AT A TIME WHEN THE LONDON MARKET AS A WHOLE IS GAINING GROUND

IF BARCLAYS HOLDS ITS DIVIDEND UNCHANGED AT 212 PENCE FOR 1992 SOME
ANALYSTS SAY ITS SHARE PRICE COULD JUMP BY 15 OR MORE FROM CURRENT LEVELS
AROUND 379 PENCE IF IT CUTS ITS DIVIDEND BY CONTRAST ITS SHARES SEEM
DESTINED TO PLUNGE

FOR THE MOMENT ANALYSTS ARE SPLIT OVER WHAT IS THE MOST LIKELY OUTCOME ON
THE DIVIDEND QUESTION SOME EXPECT THE BOARD TO PREFER TO SHELL OUT FUNDS
FROM RESERVES RATHER THAN RISK THE IRE OF INVESTORS WITH A LOWER PAYOUT
EVEN IN THE FACE OF A NET LOSS THEY SUGGEST SUCH A COURSE MIGHT BE
JUSTIFIED BY HOPES THAT BETTER TIMES ARE AROUND THE CORNER

AS THE BRITISH ECONOMY GOES INTO RECOVERY SAYS HUGH PYE OF ROBERT FLEMING
SECURITIES BARCLAYS SHOULD PROVE A HIGHLY GEARED RECOVERY PLAY OUR
LONGHELD CONTENTION IS THAT THEY WILL HOLD THE DIVIDEND HE ADDS WE HAVE
BEEN STRONG BUYERS OF BARCLAYS FOR A LONG TIME NOW

BUT A MINORITY TAKES THE CONTRARY VIEW THOUGH BARCLAYS HAS SUFFICIENT
RESERVES TO COVER THE 340 MILLION THAT AN UNCHANGED DIVIDEND WOULD COST
CONCEDES ROD BARRETT OF GOLDMAN SACHS & CO IT STILL FACES MAJOR
UNCERTAINTIES ABOUT THE LEVEL OF BADDEBT PROVISIONING LIKELY TO BE NEEDED
IN 1993 AND 1994

CAN THEY AFFORD TO MAINTAIN THE DIVIDEND YES IS IT PRUDENT THAT'S OPEN
TO QUESTION HE SAYS CONFRONTED WITH THE CHOICE HE PREDICTS BARCLAYS
DIRECTORS WILL BITE THE BULLET AND CUT THE DIVIDEND BY ONETHIRD TO 14
PENCE EVEN IF BARCLAYS DOESN'T CUT ITS DIVIDEND HE AND OTHER ANALYSTS SAY
ITS SHARES SEEM DESTINED TO UNDERPERFORM THE UK STOCK MARKET OVER THE NEXT
12 MONTHS ANYWAY

LOWERING THE DIVIDEND UNDOUBTEDLY WOULD BE A MAJOR STEP AND ONE THAT MR
BUXTON AND HIS COLLEAGUES WOULD LIKE AT ALL COSTS TO AVOID ONLY TWO OTHER
PROMINENT BRITISH BANKS STANDARD CHARTERED BANK AND MIDLAND BANK HAVE CUT
THEIR DIVIDEND IN RECENT YEARS IN BOTH CASES AS A RESULT OF BANK OF ENGLAND
CONCERN ABOUT THE STRENGTH OF THEIR BALANCE SHEET

IN BARCLAYS'S CASE THAT ISN'T AN ISSUE THE BANK WOULD STILL PROBABLY BE
ABLE TO SHOW A TIER 1 CAPITAL RATIO OF BETWEEN 54 AND 55 EVEN IF IT DID
DRAW ON RESERVES TO PAY AN UNCHANGED DIVIDEND

BUT ITS POOR PERFORMANCE IN TERMS OF LOAN LOSSES HAS SET IT APART FROM ITS
MAIN COMPETITORS AND FURTHER HEAVY PROVISIONS FOR BAD AND DOUBTFUL DEBTS
SEEM LIKELY TO BE NEEDED THIS YEAR AND NEXT

FOR MR BUXTON WHO HAS JUST TAKEN OVER AS BARCLAYS CHAIRMAN FOLLOWING THE
RETIREMENT OF SIR JOHN QUINTON THE DIVIDEND DEBATE CASTS A PALL ON WHAT
SHOULD HAVE BEEN THE HIGH POINT OF HIS 30YEAR CAREER AT THE BANK IT WILL
COLOR DECISIONS DUE TO BE TAKEN OVER THE NEXT FEW WEEKS

AS MANAGING DIRECTOR OF BARCLAYS UNTIL HE BECAME CHIEF EXECUTIVE LAST YEAR
MR BUXTON WAS CLOSELY ASSOCIATED WITH THE DECISIONS THAT HAVE RESULTED IN
THE BANK'S RECENT POOR PERFORMANCE NOW FOLLOWING A BANK OF
ENGLANDSPONSORED FINDING ON CORPORATE GOVERNANCE RECOMMENDING THAT BANKS
AND CORPORATIONS SPLIT THE ROLE OF CHAIRMAN AND CHIEF EXECUTIVE HE HAS COME
UNDER STRONG PRESSURE FROM INSTITUTIONAL INVESTORS TO MAKE CHANGES IN
BARCLAYS'S TOP MANAGEMENT STRUCTURE

IN RESPONSE HE HAS SAID HE PLANS TO SPLIT UP HIS JOB BUT HE HAS SO FAR
RESISTED BEING HURRIED INTO DOING SO FOR THE MOMENT BARCLAYS INSIDERS ONLY
SAY THAT THE BANK HAS EMBARKED ON A SEARCH FOR SOMEONE TO FILL THE POST OF
CHIEF EXECUTIVE DEPENDING ON HOW QUICKLY THEY FIND A CANDIDATE SOME
ANALYSTS SPECULATE THAT AN ANNOUNCEMENT COULD BE MADE AS EARLY AS MARCH 4
WHEN BARCLAYS UNVEILS ITS 1992 RESULTS 9301080088 930108 CALIFORNIA'S
GOVERNOR SEEKS TAX CUTS TO FIX AILING STATE ECONOMY

SACRAMENTO CALIF GOV PETE WILSON OF CALIFORNIA PROPOSES TO FIX THE
STATE'S TROUBLED ECONOMY WITH TAX CUTS AND OTHER FORMS OF INVESTMENT
INCENTIVES

GOV WILSON LAID OUT THE BROAD OUTLINES OF HOW HE PLANS TO ATTACK THE
STATE'S GRIM ECONOMIC POSITION THIS YEAR IN HIS ANNUAL STATEOFTHESTATE
SPEECH LATE WEDNESDAY NIGHT IF WE ARE TO CREATE JOBS WE'LL HAVE TO CUT
TAXES THE GOVERNOR TOLD ASSEMBLED LEGISLATORS

THE GOVERNOR'S SPEECH WASN'T LONG ON SPECIFICS BUT IT SIGNALS HIS STRATEGY
HEADING INTO WHAT SHAPES UP AS ANOTHER BRUISING BATTLE WITH THE STATE
LEGISLATURE OVER WHAT TO DO ABOUT THE STATE'S ECONOMY THE OUTCOME COULD
INFLUENCE THE PACE OF THE NATIONAL RECOVERY AT MORE THAN 700 BILLION
CALIFORNIA'S ECONOMY IS THE WORLD'S EIGHTH LARGEST AND ITS TROUBLES HAVE
BECOME A CLEAR DRAG ON THE US ECONOMY AS A WHOLE

AMONG THE STATE'S BIGGEST WOES UNEMPLOYMENT OF MORE THAN 10 PERSISTENT
REALESTATE PROBLEMS IN SOUTHERN CALIFORNIA AND A LOOMING STATE BUDGET
DEFICIT THAT'S PROJECTED TO BE IN THE BILLIONS OF DOLLARS AGAIN THIS YEAR

GOV WILSON MENTIONED TAX INCENTIVES FOR SMALL BUSINESSES REFORMING THE
STATE'S FRAUDRIDDEN WORKERS COMPENSATION SYSTEM AND REDUCING REGULATORY
BURDENS ON BUSINESS AMONG OTHER WAYS TO TRY TO STIMULATE GROWTH AND CREATE
JOBS EACH OF THOSE STEPS WOULD FACE OPPOSITION FROM SOME OF THE STATE'S
POWERFUL INTEREST GROUPS AS WELL AS SOME MEMBERS OF ITS FACTIONALIZED STATE
LEGISLATURE 9301080087 930108 LORENZO EXCHIEF OF CONTINENTAL AIR TO
SETTLE CLAIMS BY CARRIER'S CREDITORS  BY BRIDGET O'BRIAN STAFF
REPORTER OF THE WALL STREET JOURNAL

FRANK LORENZO THE FORMER AIRLINE MOGUL WHO BUILT CONTINENTAL AIRLINES FROM
A HANDFUL OF UNPROFITABLE CARRIERS ONLY TO HAVE IT LAND IN BANKRUPTCY COURT
A SECOND TIME CAN AGAIN BECOME A PLAYER IN THE INDUSTRY HE LEFT MORE THAN
TWO YEARS AGO

MR LORENZO FORMER CHAIRMAN OF CONTINENTAL AIRLINES HOLDINGS INC SAID HE
AGREED TO SETTLE FOR JUST UNDER 5 MILLION CLAIMS BY THE CARRIER'S
CREDITORS THAT HE SHOULD HAVE KNOWN THE AIRLINE WAS INSOLVENT WHEN HE SOLD
HIS SHARES TO SCANDINAVIAN AIRLINES SYSTEM IN AUGUST 1990 THE CREDITORS
ASSERTED THAT MR LORENZO AND ANOTHER EXECUTIVE RECEIVED ABOUT 40 MILLION
IN THAT TRANSACTION AND THEY WANTED THE DEAL VOIDED

AT THE SAME TIME MR LORENZO STRUCK A SEPARATE ACCORD WITH CONTINENTAL THAT
ENDS A SEVENYEAR NONCOMPETE AGREEMENT SIGNED WHEN HE STEPPED DOWN AS ITS
CHIEF EXECUTIVE THAT ALLOWS MR LORENZO WHO NOW HEADS A VENTURE CAPITAL
AND PRIVATE INVESTMENT FIRM CALLED SAVOY CAPITAL INC TO REENTER THE FIELD
EITHER BY INVESTING IN AIRLINES OR HIRING ON AS A FINANCIAL ADVISER TO THEM

MR LORENZO WON'T DISCUSS ANY PROSPECTIVE DEALS SPECIFICALLY BUT HE DID SAY
HE HAS SEEN AN ATTRACTIVE BUSINESS PROPOSITION INVOLVING AVIATION IN MEXICO
AS WELL AS SEVERAL OPPORTUNITIES IN THE US WE THINK THE '90S MAY WELL BE
A PERIOD OF SUCCESSFUL NEW AIRLINE STARTUPS HE SAID

THE ACCORDS WILL RETURN MR LORENZO TO HIS ROOTS AS AN AIRLINE EXECUTIVE
WHERE HE STARTED IN THE 1970S BY BUYING TINY TEXAS INTERNATIONAL AIRLINES
AND ACQUIRING OTHER USUALLY UNPROFITABLE AIRLINES

USING HEAVY DEBT TO EXPAND AND ATTRACTING PASSENGERS WITH CUTRATE TICKETS
HIS TEXAS AIR CORP EMPIRE WAS BRIEFLY ONE OF THE LARGEST AIRLINE COMPANIES
IN THE WORLD IN THE LATE 1980S IT INCLUDED EASTERN CONTINENTAL AND
FRONTIER AIRLINES PEOPLE EXPRESS NEW YORK AIR AND A HANDFUL OF SMALLER
COMMUTER CARRIERS BUT LABOR TROUBLES AND COSTLY AGGRESSIVE GROWTH FORCED
EASTERN THEN CONTINENTAL INTO BANKRUPTCY COURT PROCEEDINGS

CONTINENTAL'S CREDITORS SUED MR LORENZO LAST SPRING SEEKING 180 MILLION
IN COMPENSATORY AND PUNITIVE DAMAGES FROM HIM AND ROBERT SNEDEKER A FORMER
CONTINENTAL DIRECTOR OVER THE AUGUST 1990 SALE TO SAS

THE CREDITORS CLAIMED THE TWO MEN SHAPED THE SAS TRANSACTION SO THAT THE
FOREIGN CARRIER BOUGHT THEIR STAKE RATHER THAN BUYING EQUITY IN CONTINENTAL
AND PAID MORE FOR THOSE SHARES THAN THE MARKET RATE AT THE TIME CONTINENTAL
FILED FOR CHAPTER 11 PROTECTION FOUR MONTHS LATER

IN AN INTERVIEW MR LORENZO 52 YEARS OLD REITERATED THAT HE BELIEVES THE
CREDITORS' CLAIMS ARE MERITLESS BUT SAID HE AGREED TO A SETTLEMENT BECAUSE
IT ELIMINATES WHAT WAS LIKELY TO BE LENGTHY AND COSTLY LITIGATION

A REPRESENTATIVE FOR THE UNSECURED CREDITORS COULDN'T IMMEDIATELY BE
REACHED A CONTINENTAL SPOKESMAN SAID ONLY WE'RE PLEASED THE MATTER IS
RESOLVED AS A PART OF THE AGREEMENT WITH CONTINENTAL MR LORENZO ALSO
WILL RESIGN FROM CONTINENTAL'S BOARD BUT HE GETS TO KEEP A PASS ENABLING
HIM TO FLY THE AIRLINE FOR FREE IN ANY CASE HE WILL BE LEAVING THE BOARD
AFTER THE BANKRUPTCY COURT APPROVES A 450 MILLION BUYOUT OFFER FROM AIR
CANADA AND AIR PARTNERS LP UNDER TERMS OF THAT TRANSACTION A NEW
18MEMBER BOARD IS TO BE APPOINTED

MR LORENZO SAID THAT IN ADDITION TO HIS PORTION OF THE SETTLEMENT THE
UNSECURED CREDITORS WILL RECEIVE ABOUT 25 MILLION MORE FROM MR SNEDEKER
AND THE AIRLINE'S INSURER MR SNEDEKER COULDN'T BE REACHED IMMEDIATELY
9301080086 930108 BUSINESS BRIEF INTERNATIONAL SPECIALTY PRODUCTS INC
 SUBSIDIARY PLANS TO BUILD PRODUCTION PLANT IN BELGIUM

INTERNATIONAL SPECIALTY PRODUCTS INC WAYNE NJ SAID ITS ISP GLOBAL
TECHNOLOGIES UNIT PLANS TO BUILD A SPECIALTY CHEMICAL PRODUCTION PLANT IN
GHLINBAUDOUR BELGIUM FOR ABOUT 100 MILLION

STARTUP OF THE FIRST PHASE OF THE PLANT IS SLATED FOR THE SECOND HALF OF
1994 THE COMPANY SAID CONSTRUCTION WILL BE IN PHASES OVER A MULTIYEAR
PERIOD AND ONCE COMPLETED THE FACILITY WILL EMPLOY MORE THAN 160 PEOPLE

THE SPECIALTY CHEMICALS COMPANY A SUBSIDIARY OF CHEMICAL MAKER GAF CORP
SAID THE PLANT WILL MAKE A BROAD RANGE OF HIGH VALUEADDED SOLVENT AND
POLYMER PRODUCT LINES 9301080085 930108 NOTABLE & QUOTABLE

FROM WHAT WORKS BY RICK HENDERSON IN THE JANUARY ISSUE OF REASON
MAGAZINE

MOST INTERNATIONAL COMPARISONS CONCLUDE THAT AMERICAN WORKERS ARE THE MOST
PRODUCTIVE IN THE WORLD AN OCTOBER STUDY OF SERVICEINDUSTRY PRODUCTIVITY
BY THE MCKINSEY GLOBAL INSTITUTE GIVES AN EYEOPENING REASON FOR US
DOMINANCE IN LABOR PRODUCTIVITY DEREGULATION

THE STUDY COMPARES 1990 PRODUCTIVITY RATES FOR THE UNITED STATES GREAT
BRITAIN FRANCE GERMANY AND JAPAN OUT OF FIVE INDUSTRIES AIRLINES
RETAIL BANKING TELECOMMUNICATIONS RESTAURANTS AND RETAIL STORES THE
UNITED STATES LEADS IN EVERY CATEGORY EXCEPT RESTAURANTS WHERE FRANCE
BARELY FINISHED FIRST  

EUROPE AND JAPAN THE STUDY CONCLUDES HAVE EXPLICITLY PLACED MORE VALUE
ON SOCIAL OBJECTIVES AND ON MAINTAINING SOCIAL HARMONY THAN ON MAXIMIZING
LABOR PRODUCTIVITY THESE POLICIES ONLY POSTPONE AN INEVITABLE PROCESS OF
BUSINESS REORGANIZATION AT THE EXPENSE OF THE ECONOMIC WELLBEING OF THE
CURRENT POPULATION 9301080084 930108 HEARD ON THE STREET LEGG MASON
DESPITE SNUBS ON WALL STREET ATTRACTS SOME FANS WITH SOLID FEE' REVENUE
  BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK YESTERDAY'S RALLY IN SECURITIESBROKERS STOCKS DEMONSTRATED
ONCE AGAIN THAT REGIONAL BROKER LEGG MASON GETS MORE ATTENTION FROM
AMERICAN LEAGUE BASEBALL FANS THAN FROM WALL STREET

WHILE THE BROKERAGE INDUSTRY GROUP SURGED 1 ON POSITIVE EARNINGS NEWS FROM
CHARLES SCHWAB LITTLE LEGG MASON SLIPPED 1/4 TO 25 7/8

LEGG MASON PAYS 150000 A YEAR A STEAL FOR ITS CENTER FIELD
SCOREBOARD SIGN IN THE BALTIMORE ORIOLES' BALLYHOOED NEW BALLPARK THE
PUBLICITY INCLUDING A PICTURE IN SPORTS ILLUSTRATED HAS BEEN ENORMOUS IT
CERTAINLY HAS HELPED IN TERMS OF NAME RECOGNITION SAYS THE FIRM'S
CHAIRMAN RAYMOND CHIP MASON

BUT ON WALL STREET LEGG MASON'S STOCK HAS ALL THE CLOUT OF A BALSAWOOD
BASEBALL BAT SHARES IN THE BALTIMOREBASED BROKERAGE FIRM WITH 82 OFFICES
CENTERED ON THE CORRIDOR FROM PHILADELPHIA TO NORTHERN VIRGINIA ARE AMONG
WALL STREET'S MOST IGNORED

NO BROKER STOCKS HAVE BEEN BARNBURNERS LATELY THE GROUP EKED OUT ONLY A 1
GAIN IN 1992 AND IT TOOK A FOURTHQUARTER TURNAROUND ON THE BACK OF THE
NASDAQ OVERTHECOUNTER RALLY TO DO THAT SKEPTICS WORRIED THAT WALL STREET
COULDN'T SUSTAIN THE RECORD TRADING PACE OF LAST YEAR

WHAT IMPRESSES THE FEW FUND MANAGERS WHO HOLD LEGG MASON IS THE COMPANY'S
FOCUS ON FEEBASED REVENUE IT GETS AN UNUSUALLY HIGH 15 OF ITS REVENUE
FROM MONEYMANAGEMENT FEES RATHER THAN COMMISSIONS AND TRADING MR MASON
WANTS TO BOOST THAT TO 25 PERHAPS BY BUYING AN OVERSEAS MONEYMANAGEMENT
COMPANY

ONE OF THE KEY THINGS WITH LEGG MASON IS THEY'RE DEVELOPING MORE FEE
BUSINESSES THEY'RE STABILIZING THEIR REVENUE SAYS MARK JOHNSON MANAGER
OF THE 285 MILLION USAA AGGRESSIVE GROWTH FUND WHICH HOLDS 190000 LEGG
MASON SHARES ALSO THEY SEEM TO HAVE A NICHE OF LOYAL CLIENTELE

A FORMER LEGG MASON EXECUTIVE SAYS THE FIRM HAS NO DELUSIONS OF GRANDEUR 
 THEY NEVER TRIED TO BE MORE THAN THEY ARE HE SAYS THE BROKERAGE HOUSE
STICKS TO WHAT IT KNOWS TRYING TO ATTRACT MONEY FROM DOCTORS AND
LAWYERS IN ITS AREA

UNDER THE PLAINSPOKEN 56YEAROLD MR MASON LEGG MASON'S PROFIT IS ON ITS
WAY TO A FOURTH CONSECUTIVE RECORD YEAR FOR THE 12 MONTHS ENDING MARCH 31
IT HAS ALREADY POSTED RECORD SIXMONTH EARNINGS OF 144 MILLION OR 157 A
SHARE BETTER THAN ANY FULL YEAR IN ITS HISTORY ASIDE FROM LAST YEAR'S
RECORD

AMONG THE SOCALLED REGIONAL BROKERAGE FIRMS BASED OUTSIDE NEW YORK CITY
LEGG MASON RANKS IN THE TOP 10 IN EQUITY CAPITAL 148 MILLION OFFICES
EMPLOYEES AND STOCKBROKERS 825

THE BROKERAGE FIRM IS AMONG THE FEW ON OR OFF WALL STREET TO MAINTAIN A GOOD
REPUTATION FOR ITS INTERNALLY RUN MUTUAL FUNDS IT HAS 11 OF THEM WITH
ASSETS OF 28 BILLION THEY'VE KEPT THEIR GROUP OF FUNDS SMALL AND DONE A
GOOD JOB THEY HAVEN'T HAD A FUND FOR EVERY SEASON SAYS LORI LUCAS OF
MORNINGSTAR MUTUAL FUNDS A FUND ANALYSIS FIRM IN CHICAGO

FOR EXAMPLE THE 286 MILLION LEGG MASON SPECIAL INVESTMENT TRUST UP 154
IN 1992 GETS MORNINGSTAR'S TOP FIVESTAR RATING IT EMPHASIZES SMALLER
STOCKS APPLYING LEGG MASON'S TYPICAL VALUE INVESTMENT STYLE FOCUSING ON
BEATENDOWN STOCKS MS LUCAS SAYS THAT IN FUND MANAGER WILLIAM H MILLER
LEGG MASON REALLY DOES HAVE A STAR

ANOTHER QUIET STEADY BUSINESS LEGG MASON IS EXPANDING IS COMMERCIAL REAL
ESTATE LOANSERVICING ITS LATIMER & BUCK AND DORMAN & WILSON UNITS SERVICE
12 BILLION IN COMMERCIAL LOANS IT'S AN ACE UP THEIR SLEEVE IF THE REAL
ESTATE MARKET REBOUNDS SAYS MICHAEL FLANAGAN OF LIPPER ANALYTICAL
SECURITIES

MEANWHILE TO KEEP CUSTOMERS HAPPY LEGG MASON PLANS TO INTRODUCE SOME NEW
MUTUAL FUNDS INCLUDING AN INTERNATIONAL BOND FUND AND A BLUE CHIP FUND
THAT ISN'T LOCKED INTO THE VALUE APPROACH IT ALSO MAY EXPAND ITS MODEST
INVESTMENTBANKING OPERATION WE HAVE A FRANCHISE THAT WE EITHER SERVICE OR
SOMEBODY ELSE WILL THIS IS NOT A CAMPAIGN TO BECOME A MAJOR UNDERWRITER
SAYS MR MASON

ALL REGIONAL BROKERS COULD FARE BETTER THAN THE LESSFLEXIBLE BIG FIRMS IN
TREACHEROUS MARKETS SAY SOME ANALYSTS AS A CONSERVATIVE INVESTOR WRITES
A MICHAEL LIPPER PRESIDENT OF LIPPER I WOULD PASS UP THE SPARKLING WATER
OF THE INVESTMENT BANKING STOCKS AND DRINK THE TAP WATER OF THE REGIONALS

YEAR ENDED MARCH 31 1992

SECOND QUARTER SEPT 30 1992 9301080083 930108 CLINTON AND THE AMERICAS
  BY MARIO VARGAS LLOSA

PARADOXICALLY IT IS THE US VICTORY IN THE COLD WAR THE LOSS OF
WORLDCLASS ADVERSARIES THAT HAS ECLIPSED THE AVERAGE CITIZEN'S INTEREST IN
INTERNATIONAL QUESTIONS HOWEVER THIS INDIFFERENCE ALSO RESTS ON AN
ILLUSION THE COMMUNIST THREAT MAY HAVE DISAPPEARED BUT THE US CANNOT
TURN ITS BACK ON THE REST OF THE WORLD

NATIONAL PROBLEMS NO LONGER EXIST IN ANY FIELD LEAST OF ALL IN ECONOMICS
FOR BETTER OR FOR WORSE THE PROBLEMS OF ALL COUNTRIES ARE INTERCONNECTED
AND AFFECT ONE ANOTHER THE CRISES AND BOOMS OF THE GREAT INDUSTRIAL
SOCIETIES INCLUDING THE US HAVE IMMEDIATE REPERCUSSIONS THROUGHOUT THE
WORLD THIS CARRIES CERTAIN RESPONSIBILITIES AND DEMANDS CERTAIN SACRIFICES
AND COSTS

WHAT DOES PRESIDENTELECT CLINTON THINK IN THIS REGARD IT IS DIFFICULT TO
KNOW SINCE HIS DECLARATIONS AND STANDS ON MATTERS OF INTERNATIONAL POLITICS
HAVE BEEN SCARCE AND OFTEN VAGUE THE EXCEPTIONS HAVE BEEN IN THE AREA OF
HUMAN RIGHTS AND THE NEED FOR THE US TO ADOPT A POSITION MORE FIRM THAN
THAT OF THE BUSH ADMINISTRATION TOWARD GOVERNMENTS THAT ENACT REPRESSIVE AND
ANTIDEMOCRATIC MEASURES

BASED ON MR CLINTON'S STRONG CRITICISM OF THE BUSH ADMINISTRATION'S
FLAGGING OPPOSITION TO DICTATORIAL REGIMES IN LATIN AMERICA WE CAN EXPECT
THE CLINTON WHITE HOUSE TO ISOLATE HAITI PERU AND OTHER ILLEGAL GOVERNMENTS
AND TO SHOW SOLIDARITY WITH COUPEXHAUSTED DEMOCRACIES LIKE VENEZUELA THE
PRESIDENTELECT HAS REGISTERED HIS OPPOSITION TO LIFTING THE EMBARGO ON CUBA
UNTIL THERE IS CLEAR EVIDENCE THAT DEMOCRATIZATION IS UNDER WAY AND HE EVEN
BACKS A BILL THAT WOULD EXTEND THE PROHIBITION AGAINST TRADE WITH THE CASTRO
REGIME TO FOREIGN SUBSIDIARIES OF US FIRMS

IN A LATIN AMERICAN CONTEXT THIS RESOLUTE SUPPORT OF NEW DEMOCRACIES AND
ACTIVE HOSTILITY TOWARD DICTATORSHIPS BE THEY OF THE LEFT OR OF THE RIGHT
COULD NOT BE MORE TIMELY OR MORE WELCOME WHILE THE GREAT MAJORITY OF THE
COUNTRIES OF LATIN AMERICA ARE NOW BENEFITING FROM DEMOCRATIC REGIMES
DEMOCRACY IN MANY OF THEM IS STILL FRAGILE DUE TO THE MAGNITUDE OF SOCIAL
AND ECONOMIC PROBLEMS AND THE INEFFICIENCY OF PUBLIC INSTITUTIONS
CORRUPTION ABOVE ALL RAVAGES THOSE SOCIETIES EMBARKING ON THE STUDY OF
LEGALITY AND FREEDOM

IT IS UNTRUE HOWEVER THAT BECAUSE THEY ARE NEWBORNS THESE DEMOCRACIES ARE
INCAPABLE OF CONFRONTING THESE EVILS BRAZIL HAS PROVED THIS POINT IN AN
ADMIRABLE FASHION BY REMOVING A LEADER CHARGED WITH CORRUPTION AND PLACING
HIM ON TRIAL FOLLOWING CONSTITUTIONAL MECHANISMS AND WITHOUT KNOCKING ON
THE BARRACKS DOOR NOTHING COULD PROVIDE SO EFFECTIVE AN ANTIDOTE AGAINST
THE MILITARY LEADERS AND CIVILIANS WHO IN LATIN AMERICA ARE BENT ON
FOLLOWING HAITI'S OR PERU'S BAD EXAMPLE AS THE PROSPECT OF AN ECONOMIC AND
DIPLOMATIC QUARANTINE CARRIED OUT BY THE INTERNATIONAL COMMUNITY AND HEADED
BY THE US

BUT THIS TYPE OF SUPPORT WOULD LITTLE SERVE THE CAUSE OF THE NEW DEMOCRACIES
IF IT WAS NOT ACCOMPANIED ON THE US SIDE BY AN OPENING OF THE NORTH
AMERICAN MARKET TO EXPORTS FROM ITS SOUTHERN NEIGHBORS AND BY HEMISPHERIC
ECONOMIC COOPERATION AND INTEGRATION ON THIS FRONT THE POLICY OF THE BUSH
ADMINISTRATION HAS BEEN GOOD AND SHOULD BE CONTINUED BY MR CLINTON

MR CLINTON SAYS HE SUPPORTS THE NORTH AMERICAN FREE TRADE AGREEMENT WITH
MEXICO AND CANADA ALTHOUGH THIS SUPPORT HAS BEEN DILUTED BY WORRISOME
SUGGESTIONS THAT SEEM TO COINCIDE WITH DEMANDS BY LABOR GROUPS AND
INDUSTRIAL MANUFACTURERS THE TREATY'S NORTH AMERICAN ENEMIES AND DURING
THE CAMPAIGN DEBATES MR CLINTON AS WELL AS AL GORE SEEMED TO ECHO
CRITICISMS LEVIED AGAINST FINANCIAL ASSISTANCE PROGRAMS THAT ALLOW NEW
INDUSTRIES TO ESTABLISH THEMSELVES IN CENTRAL AMERICA WITH THE ARGUMENT
THAT THESE STEAL JOBS FROM THE NORTH AMERICAN MARKET IT WILL BE INTERESTING
TO SEE WHAT MR CLINTON SAYS IN HIS MEETING WITH MEXICO'S PRESIDENT CARLOS
SALINAS TODAY

THE NEW ADMINISTRATION WILL FACE ENORMOUS PRESSURES TO APPLY PROTECTIONIST
POLICIES TO PROGRESSIVELY ISOLATE THE US TO SLOW DOWN OR REVERSE THE
GLOBALIZATION OF MARKETS THAT IN PAST DECADES HAS ENABLED MANY COUNTRIES TO
COME OUT OF POVERTY AND DEVELOP RAPIDLY IF THE CLINTON ADMINISTRATION
ACCEDES TO THESE MEASURES NORTH AMERICA'S ECONOMIC PROBLEMS WILL BE
AGGRAVATED AS FOR LATIN AMERICA THIS WOULD BE A CATASTROPHE

THOUGH AT FIRST GLANCE IT MIGHT APPEAR THAT WAY A SHOE FACTORY'S MOVING
FROM NORTH CAROLINA TO COSTA RICA OR EL SALVADOR DOES NOT HURT THE US THE
ECONOMIC DEVELOPMENT OF CENTRAL AMERICA FOSTERS A CONSUMER MARKET NOURISHED
IN LARGE PART BY NORTH AMERICAN PRODUCTS MOREOVER IT RESOLVES IN THE ONLY
REAL AND LASTING WAY THE PROBLEM OF ILLEGAL IMMIGRATION OFFERING THOSE
HUNGRY MASSES A DECENT MEANS OF SURVIVAL WITHIN THEIR OWN COUNTRIES AND IF
THE SHOES MADE IN COSTA RICA OR EL SALVADOR HAPPEN TO BE OF GOOD QUALITY AND
CHEAPER THAN THOSE MANUFACTURED IN NORTH CAROLINA THIS ALSO BENEFITS THE
NORTH AMERICAN CONSUMER

THE FREEDOM TO INVEST CONSUME AND TRADE COUPLED WITH RESPECT FOR PRIVATE
PROPERTY AND CONTRACTS FORMS THE BASIS OF ALL CIVILIZED ECONOMIC
DEVELOPMENT AND THE ECONOMIC PHILOSOPHY UPON WHICH THE US WAS FOUNDED
THAT IS WHY OVER THE PAST FEW YEARS SO MANY COUNTRIES ON SO MANY
CONTINENTS HAVE ADOPTED THIS PHILOSOPHY AND TRIED TO PUT IT INTO PRACTICE

THE RECORD HAS BEEN MIXED SINCE IT IS EXTREMELY HARD TO REBUILD A COUNTRY
FROM HEAD TO TOE THROUGH FREE ENTERPRISE AND THE MARKET WHEN YOU LACK THE
KNOWHOW THE BASIC INFRASTRUCTURE AND THE CAPITAL AND YOU HAVE BEEN
PROFOUNDLY DAMAGED BY THE STULTIFYING PRACTICES OF POPULISM AND
COLLECTIVISM HERE LIES THE EXPLANATION FOR THE FAILURE OF SO MANY ATTEMPTS
AT ECONOMIC MODERNIZATION IN EUROPE AND ASIA AND FOR THE NATIONALIST
EXPLOSIONS THAT HAVE SUCCEEDED THEM

IN CONTRAST TO WHAT HAS BEEN TAKING PLACE IN ROMANIA TAJIKISTAN AND
UKRAINE THE SIMULTANEOUS ADOPTION OF ECONOMIC LIBERALIZATION AND POLITICAL
DEMOCRATIZATION HAS ALREADY BEGUN TO FUNCTION IN LATIN AMERICA AND EVEN
TO YIELD SOME VERY ENCOURAGING RESULTS AS SEEN IN CHILE AND IN MEXICO

MEXICO'S INTEGRATION INTO NAFTA WAS INTERPRETED BY PRESIDENT BUSH AS THE
FIRST STAGE OF CONTINENTAL INTEGRATION TO WHICH OTHER LATIN AMERICAN
COUNTRIES WOULD ADD THEMSELVES AS MODERNIZATION AND IMPROVEMENTS IN THEIR
ECONOMIES PERMITTED CHILE IS ALREADY A QUALIFIED CANDIDATE THIS POLICY
TOGETHER WITH MR BUSH'S ENTERPRISE INITIATIVE THAT PROMOTES INVESTMENT AND
THE DEVELOPMENT OF PRIVATE ENTERPRISE IN LATIN AMERICA HAS SET IN MOTION A
DYNAMIC THAT ULTIMATELY MAY RESULT IN A HEMISPHERIC COMMON MARKET UNLIKE
PREVIOUS PROJECTS OF COOPERATION BETWEEN NORTH AND SOUTH IT BENEFITS FROM
FERTILE SOIL IT MAY ONE DAY BRING LATIN AMERICA THE GROWTH AND WELLBEING
THAT ITS ENGLISHSPEAKING NEIGHBORS HAVE LONG ENJOYED

FOR THIS TO BECOME A REALITY THE NEW ADMINISTRATION BORN OF HOPE AND THE
EAGERNESS OF SO MANY PEOPLE MUST MOVE TO SUPPORT AND INVIGORATE THIS POLICY
WITH SOLID NEW INITIATIVES AIMED AT REINFORCING COOPERATION AND ECONOMIC
INTEGRATION BETWEEN THE WEALTHY AND POOR COUNTRIES OF THE AMERICAS

MR VARGAS LLOSA A PERUVIAN WRITER IS A VISITING PROFESSOR AT HARVARD
9301080082 930108 MARKETING BRIEF KING WORLD PRODUCTIONS INC FISCAL
FIRSTPERIOD NET ROSE 5 AS REVENUE DECLINED 15

TELEVISION SYNDICATOR KING WORLD PRODUCTIONS INC SAID NET INCOME FOR THE
FISCAL FIRST QUARTER ROSE 5 DESPITE A 15 DECLINE IN REVENUE BECAUSE OF
LOWER TV STATION PAYMENTS COLLECTED FOR WHEEL OF FORTUNE AND JEOPARDY

KING WORLD IN NEW YORK SAID NET INCOME FOR THE QUARTER ENDED NOV 30
INCREASED TO 385 MILLION OR 98 CENTS A SHARE FROM 366 MILLION OR 94
CENTS A SHARE IN THE YEARAGO PERIOD REVENUE FELL TO 1697 MILLION FROM
199 MILLION A YEAR EARLIER

KING WORLD ALSO ATTRIBUTED THE REVENUE DECLINE TO THE CANCELLATION OF
CANDID CAMERA WHICH IT WAS DISTRIBUTING A YEAR AGO

AT THE END OF THE FIRST QUARTER THE COMPANY SAID ITS CASH POSITION WAS 383
MILLION COMPARED WITH 256 MILLION REPORTED AT THE END OF NOVEMBER 1991
9301080080 930108 ABREAST OF THE MARKET INDUSTRIALS FALL 3647 AMID
DROP IN BOND PRICES TENSION OVER IRAQ  BY CRAIG S SMITH STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK FALLING BOND PRICES AND TENSIONS WITH IRAQ COMBINED TO SEND
STOCKS SLIDING LATE IN THE DAY

INVESTORS HAVE BEEN WORRYING ABOUT AN ONCOMING STOCK PULLBACK AS THEY
WATCHED THE NASDAQ MARKET SOAR TO RECORD HIGHS IN RECENT SESSIONS A
SPECULATIVE BLOWOFF IN SMALL VOLATILE STOCKS IS OFTEN REGARDED AS A
PRECURSOR TO A PLUNGE IN BIGSHARE PRICES

WHEN BOND PRICES BEGAN FALLING FEARS OF A DROP IN STOCK PRICES INCREASED
THE TREASURY'S 30YEAR BOND LOST MORE THAN A POINT ITS YIELD SURGING ABOVE
THE 74 LEVEL A FLOOD OF CORPORATE BOND ISSUES HAS SENT BOND PRICES
SINKING TOGETHER WITH CONCERNS THAT A STRENGTHENING ECONOMY WILL DRIVE
INTEREST RATES HIGHER

BEHIND THE VARIOUS MARKET CONCERNS LAY THE GROWING TENSION BETWEEN IRAQ AND
THE WEST THE US AND ITS ALLIES HAVE DEMANDED THAT IRAQ REMOVE MISSILES
FROM THE NOFLY ZONE IN SOUTHERN IRAQ ALTHOUGH THE ALLIED ULTIMATUM HAD
LITTLE DIRECT IMPACT ON STOCK PRICES THE THREAT OF A CONFLICT HAS TURNED
MANY INVESTORS CAUTIOUS

BIG BOARD STOCKS DROPPED AFTER A FIRM OPENING BUT THEN RECOVERED TO
UNCHANGED LEVELS AS THE NASDAQ MARKET CONTINUED TO CLIMB STOCK PRICES BEGAN
TO ERODE IN THE AFTERNOON HOWEVER BEFORE COMPUTERGUIDED SELL PROGRAMS
FINALLY HIT THE MARKET IN THE LAST HOUR OF TRADING

STANDARD & POOR'S 500STOCK INDEX FELL 379 TO 43073 AND THE NEW YORK STOCK
EXCHANGE COMPOSITE INDEX LOST 189 TO 23726 THE NASDAQ COMPOSITE INDEX
FELL 364 TO 67821

THE LATEDAY PLUNGE BROUGHT MANY MARKET WATCHERS TO THE EDGE OF THEIR SEATS
ANALYSTS HAVE COMPLAINED FOR MONTHS THAT STOCK VALUATIONS ARE TOO HIGH
ACCORDING TO A VARIETY OF MEASURES SOME PESSIMISTS HAVE EVEN PREDICTED THAT
A BEAR MARKET IS LOOMING LATER THIS YEAR

JACK SOLOMON TECHNICAL ANALYST AT BEAR STEARNS IS STAYING COOL HOWEVER

THERE IS A CUSHION UNDER THIS MARKET HE SAID REFERRING TO THE MOUNDS OF
CASH THAT HAVE BUILT UP AT MUTUAL FUND COMPANIES SOLOMON SAID YESTERDAY'S
DROP WAS TRIGGERED BY THE MASSIVE SHIFT FROM ONE SECTOR OF THE MARKET TO
ANOTHER THAT BEGAN WEDNESDAY

INVESTORS HAVE SOLD CONSUMER NONDURABLE STOCKS AND SPENT MUCH OF THAT MONEY
ON MORE ECONOMICALLY SENSITIVE SHARES THE ROTATION HAS BEEN GOING ON IN
FITS AND STARTS FOR ABOUT A YEAR BUT PICKED UP SPEED AGAIN IN THE PAST TWO
DAYS

THE CYCLICAL THEME GOT A BOOST YESTERDAY MORNING FROM A REPORT THAT STATE
UNEMPLOYMENT INSURANCE CLAIMS FELL SHARPLY IN THE WEEK ENDED DEC 26 TO
THEIR LOWEST LEVEL SINCE 1989 SOME ANALYSTS BELIEVE THE REPORT MAY PRESAGE
A SURGE IN JOBS IN THE DECEMBER EMPLOYMENT REPORT DUE TODAY

MANY CYCLICAL STOCKS ROSE YESTERDAY DESPITE THE SELLING IN OTHER SECTORS OF
THE MARKET CATERPILLAR FOR EXAMPLE ENDED WITH A 3/4POINT GAIN TO 56 1/2
WHILE INGERSOLLRAND ROSE 7/8 TO 31

AIRLINE STOCKS ALSO CONTINUED TO RALLY SENDING THE DOW JONES TRANSPORTATION
AVERAGE TO ITS HIGHEST LEVEL IN MORE THAN THREE YEARS

SECURITIES BROKERS' STOCKS WERE ALSO STRONG FOLLOWING A REPORT THAT CHARLES
SCHWAB'S PROFIT MORE THAN TRIPLED IN THE FOURTH QUARTER FROM THE THIRD
QUARTER WHEN DISAPPOINTING RESULTS DROVE THE COMPANY'S SHARE PRICE LOWER
SCHWAB'S STOCK ENDED WITH A 3POINT GAIN TO 28 5/8 OTHER BROKERS' SHARES
FOLLOWED INCLUDING PAINEWEBBER UP 5/8 TO 23 7/8 MERRILL LYNCH UP 5/8 TO
59 3/8 AND DISCOUNT BROKER QUICK & REILLY UP 3/4 TO 25 1/4

PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES DOUBTS THE MARKET IS
FACING A MAJOR RETREAT DESPITE THE FRAYED NERVES YESTERDAY

MY GUESS IS THAT THE ECONOMY IS GOING TO COME THROUGH AND EARNINGS ARE
GOING TO IMPROVE HELPING TO JUSTIFY THE MARKET'S CURRENT LEVELS HE SAID
THIS IS JUST A SHAKEOUT I DON'T SEE ANY FUNDAMENTAL REASON TO SAY THIS IS
THE TOP OF THE MARKET'S CLIMB HE ADDED

HOWEVER BEAR STEARNS'S MR SOLOMON CAUTIONED THAT A BREAK BELOW 3255 BY THE
DOW JONES INDUSTRIALS THEIR LOW FOR DECEMBER COULD SEND THE AVERAGE BACK
TO THE LEVELS AT WHICH IT BOTTOMED IN OCTOBER

PHILIP MORRIS REBOUNDED ADDING 3/4 TO 72 5/8 RJR NABISCO ALSO GAINED
GROUND UP 1/8 TO 8 3/8 BOTH STOCKS FELL WEDNESDAY IN THE WAKE OF A
GOVERNMENT REPORT THAT WARNED ABOUT THE CANCERCAUSING EFFECTS OF PASSIVE
CIGARETTE SMOKE

RETAILERS FELL HOWEVER WALMART DROPPED 7/8 TO 60 1/8 BEST BUY LOST 5 3/8
TO 33 3/4 AND WOOLWORTH FELL 1 7/8 TO 30 1/4

HOME SHOPPING NETWORK SLID 7/8 TO 7 3/8 THE COMPANY IS POSTPONING ITS
ANNUAL MEETING ORIGINALLY SET FOR NEXT TUESDAY BECAUSE OF MATTERS RELATING
TO THE PENDING SALE OF A CONTROLLING INTEREST IN THE COMPANY TO LIBERTY
MEDIA THE JUSTICE DEPARTMENT HAS ASKED FOR ADDITIONAL INFORMATION RELATING
TO ITS ANTITRUST REVIEW OF THE TRANSACTION

BANKAMERICA FELL 2 1/2 TO 44 AFTER TWO SECURITIES FIRMS CUT THEIR ESTIMATES
FOR THE COMPANY'S EARNINGS KEMPER SECURITIES AND KEEFE BRUYETTE & WOODS
BOTH LOWERED THEIR NUMBERS NATWEST SECURITIES MEANWHILE LOWERED ITS
INVESTMENT RATINGS ON SEVERAL BANKS OTHER THAN BANKAMERICA AMONG THOSE
MENTIONED BY NATWEST WERE FIRST INTERSTATE WHICH LOST 7/8 TO 46
CONTINENTAL BANK WHICH FELL 1 3/4 TO 19 3/4 AND JP MORGAN WHICH DROPPED
1 1/4 TO 64

AMERICAN STOCK EXCHANGE VOLUME TOTALED 19950000 SHARES COMPARED WITH
16584000 WEDNESDAY THERE WERE 286 ISSUES ADVANCING 290 DECLINING AND 201
UNCHANGED 9301080079 930108 MARKETING BRIEF DISCOVERY COMMUNICATIONS
INC REST OF A CHANNEL IS BOUGHT FROM TELECOMMUNICATIONS

DISCOVERY COMMUNICATIONS INC BOUGHT THE 70 STAKE IN DISCOVERY
CHANNELEUROPE THAT IT DID NOT ALREADY OWN FROM A UNIT OF ONE OF ITS OWNERS
CABLE GIANT TELECOMMUNICATIONS INC

FINANCIAL TERMS OF THE TRANSACTION WERE NOT DISCLOSED A DISCOVERY SPOKESMAN
SAID THE TRANSACTION REFLECTS A CONSOLIDATION OF PROGRAM CHANNELS UNDER THE
DISCOVERY UMBRELLA DISCOVERY COMMUNICATIONS IS 49 OWNED BY
TELECOMMUNICATIONS UNITED ARTISTS ENTERTAINMENT PROGRAMMING WHICH HELD
THE 70 STAKE IN THE LONDONBASED CABLE AND SATELLITE TV NETWORK IS A
WHOLLY OWNED UNIT OF TELECOMMUNICATIONS

IN A RELATED MOVE NEW YORKBASED DISCOVERY COMMUNICATIONS SAID IT WOULD
ALSO BUY FROM UNITED ARTISTS THE LEARNING CHANNELUK A CABLE SERVICE BASED
IN THE UNITED KINGDOM UNITED ARTISTS WILL MANAGE THE PROGRAMMING
DISTRIBUTION MARKETING AND SALES OF THE TWO NETWORKS UNDER CONTRACT
9301080078 930108 TECHNOLOGY FIRM SAYS SHORTAGE OF NITROGLYCERIN
PILLS SHOULD BE EASED SOON

BOSTON AP A NATIONWIDE SHORTAGE OF NITROGLYCERIN PILLS A COMMON HEART
MEDICINE SHOULD EASE DURING THE NEXT TWO WEEKS AS ITS MAKER RESUMES
PRODUCTION THE COMPANY SAID

MANY DRUGSTORES ARE CLEANED OUT OF THE MEDICINE CALLED NITROSTAT THE
PRIMARY TREATMENT FOR ANGINA ATTACKS MANUFACTURER WARNERLAMBERT CO
ATTRIBUTED THE SHORTAGE TO MANUFACTURING DIFFICULTIES AT ITS PLANT IN
FAJARDO PUERTO RICO

WE SEE THIS BEING LARGELY RESOLVED IN THE NEXT SEVERAL DAYS MOST ORDERS
WILL BE FILLED WITHIN A WEEK WE ARE SPRINTING TO FIX THE SITUATION SAID
PETER WOLF A SPOKESMAN

MR WOLF SAID HE KNEW OF NO DEATHS OR OTHER ADVERSE EVENTS FROM THE
SHORTAGE

AROUND THE COUNTRY SOME STORES HAVE HAD TO TURN AWAY CUSTOMERS WHO WANT TO
REFILL PRESCRIPTIONS

A LOT OF OUR STORES ARE OUT SAID RACHELLE GOTO ASSISTANT VICE PRESIDENT
FOR PHARMACY PURCHASING AT THE RITE AID CHAIN BASED IN HARRISBURG PA
IT'S BEEN A LITTLE HAIRY SHE SAID I DON'T KNOW WHAT THE DOCTORS ARE
DOING FOR AN ALTERNATIVE BECAUSE THERE IS NOT ANY VIABLE ALTERNATIVE
AVAILABLE

NITROSTAT IS THE ONLY BRAND OF NITROGLYCERIN TABLET ON THE MARKET HEART
PATIENTS PUT THE PILLS UNDER THEIR TONGUES TO RELIEVE CHEST PAIN

WHILE MANY HEART PATIENTS WEAR NITROGLYCERIN SKIN PATCHES THESE AREN'T
INTENDED FOR ACUTE ATTACKS THE ONLY OTHER KIND OF NITROGLYCERIN AVAILABLE
FOR CHEST PAIN IS A SPRAY THAT COSTS ABOUT FOUR TIMES MORE THAN THE TABLETS
9301080077 930108 POLITICS & POLICY CLINTON FACES DIFFICULT CHOICE 
INVOLVING DALEY  BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL
STREET JOURNAL

LITTLE ROCK ARK BILL CLINTON'S TRANSITION TEAM IS TRYING TO PATCH
RELATIONS WITH WILLIAM DALEY AND HIS POWERFUL CHICAGO POLITICAL FAMILY AT
ONE POINT MR DALEY WAS THE LEADING CANDIDATE TO BE TRANSPORTATION
SECRETARY BUT AT THE LAST MOMENT HE LOST OUT TO FEDERICO PENA A FORMER
DENVER MAYOR

MR DALEY WAS OFFERED THE JOB AS WHITE HOUSE PERSONNEL DIRECTOR BUT HE
TURNED IT DOWN AND ASKED INSTEAD FOR THE TRANSITION PERSONNEL SLOT THAT IS
BEING VACATED BY FORMER SOUTH CAROLINA GOV RICHARD RILEY WHO HAS BEEN
PICKED TO BE EDUCATION SECRETARY THE TRANSITION JOB IS COVETED BECAUSE THE
OCCUPANT IS IN POSITION TO HELP ALLIES WIN KEY SPOTS IN THE NEW
ADMINISTRATION IT ALSO MAY APPEAL TO MR DALEY BECAUSE IT IS A TEMPORARY
POSITION AND WOULDN'T FORCE HIM TO UPROOT HIS FAMILY

BUT MR DALEY'S REQUEST POSES A TOUGH PROBLEM FOR MR CLINTON WHILE MENDING
TIES WITH CHICAGO'S FIRST POLITICAL FAMILY IS IMPORTANT THE OTHER SERIOUS
CANDIDATE IS SAID TO BE WILLIAM WINTER A CLOSE FRIEND OF MR CLINTON'S AND
THE FORMER GOVERNOR OF MISSISSIPPI

STILL AS ONE POLITICAL ALLY OF THE PRESIDENTELECT ASKED WHERE DO YOU
NEED SUPPORT FROM MORE CHICAGO OR MISSISSIPPI

MR DALEY WHO IS THE PRESIDENT OF AMALGAMATED BANK OF CHICAGO INSISTS THAT
NEITHER HE NOR HIS BROTHER RICHARD WHO IS THE MAYOR OF CHICAGO ARE UPSET
ABOUT THE PENA APPOINTMENT FAMILY FRIENDS HOWEVER PRIVATELY CONFIDE THAT
MAYOR DALEY HAS BEEN FUMING THAT MR CLINTON DISRESPECTED HIS FAMILY

SEPARATELY ALICIA MUNNELL SENIOR VICE PRESIDENT AND RESEARCH DIRECTOR AT
THE FEDERAL RESERVE BANK OF BOSTON HAS EMERGED AS THE LIKELY CHOICE TO BE
ASSISTANT TREASURY SECRETARY FOR ECONOMIC POLICY

MS MUNNELL 50 YEARS OLD HAS A DOCTORATE IN ECONOMICS FROM HARVARD AND HAS
BEEN AT THE BOSTON FED SINCE 1973 AS RESEARCH DIRECTOR SHE SITS IN ON THE
CLOSEDDOOR MEETINGS OF THE FED'S POLICYSETTING OPEN MARKET COMMITTEE

AN EXPERT ON PENSIONS AND SOCIAL SECURITY ISSUES SHE IS ALSO A STRONG
PROPONENT OF INCREASING GOVERNMENT INVESTMENT IN INFRASTRUCTURE
APPROPRIATE INFRASTRUCTURE INVESTMENT CAN INCREASE PRODUCTIVITY AND GROWTH
AND FUTURE LEVELS OF FAMILY INCOME SHE SAID AT MR CLINTON'S ECONOMIC
CONFERENCE LAST MONTH THE CHALLENGE WILL BE FUNNELING GOVERNMENT MONEY TO
THE PROJECTS WITH THE HIGHEST PAYOFF

IN ADDITION SALLY SHELTON WHO WAS A DEPUTY ASSISTANT SECRETARY OF STATE
AND AMBASSADOR TO GRENADA AND BARBADOS DURING THE CARTER ADMINISTRATION IS
SAID BY TRANSITION OFFICIALS TO BE IN LINE FOR AN INTERNATIONALAFFAIRS JOB
MS SHELTON WHO IS MARRIED TO FORMER CIA DIRECTOR WILLIAM COLBY TEACHES
LATIN AMERICAN POLITICS AND ECONOMICS AT GEORGETOWN UNIVERSITY IN
WASHINGTON

MOREOVER THE PRESIDENTELECT IS EXPECTED TO NAME HIS WHITE HOUSE STAFF
SOON PERHAPS BY THIS WEEKEND THOSE LIKELY TO BE NAMED TO KEY POSITIONS ARE
HAROLD ICKES A NEW YORK LAWYER AND PARTY ACTIVIST TOM DONILON A
WASHINGTON LAWYER AND DEMOCRATIC CONSULTANT HOWARD PASTER A WASHINGTON
LAWYER AND MARK GEARAN A DEPUTY DIRECTOR OF THE TRANSITION

DEE DEE MYERS THE TRANSITION PRESS SECRETARY WILL PROBABLY BE NAMED WHITE
HOUSE PRESS SECRETARY GEORGE STEPHANOPOULOS WHO IS THE TRANSITION
COMMUNICATIONS DIRECTOR IS EXPECTED TO CONTINUE IN THAT ROLE AND PAUL
BEGALA A DEMOCRATIC POLITICAL STRATEGIST AND SPEECHWRITER IS EXPECTED TO
JOIN THE COMMUNICATIONS TEAM IN ADDITION MARCIA HALE A STRATEGIST WHO HAS
BEEN WORKING ON THE TRANSITION IS THE LEADING CANDIDATE TO BE MR CLINTON'S
SCHEDULER 9301080076 930108 CREDIT MARKETS BOND PRICES PLUNGE ON DROP
IN JOBLESS CLAIMS TREASURY BENCHMARK'S YIELD RISES TO 744  BY
THOMAS T VOGEL JR AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL
STREET JOURNAL

NEW YORK A REPORT SUGGESTING NEW STRENGTH IN THE ECONOMY SENT PRICES OF
TREASURY NOTES AND BONDS INTO A DOWNWARD SPIRAL EARLY YESTERDAY THAT PICKED
UP MOMENTUM AS THE DAY WENT ON

INVESTORS WERE SPOOKED BY A REPORT SHOWING A DROP OF 40000 IN INITIAL
UNEMPLOYMENT CLAIMS FOR THE WEEK ENDED DEC 26 BECAUSE IT SEEMED TO INDICATE
GREATER STRENGTH IN THE ECONOMY THAN HAD BEEN BELIEVED ECONOMISTS SURVEYED
BY DOW JONES CAPITAL MARKETS REPORT HAD EXPECTED A RISE OF 1000 FOR THE
WEEK

BY DAY'S END THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED
BELOW WHERE IT STARTED THE WEEK THIS WEEK'S TOPSYTURVY MOVEMENTS IN THE
TREASURY MARKET BEGAN WITH A PRICE JUMP OF 7/8 POINT MONDAY AND CONTINUED
WITH A 1 1/8 POINT DROP YESTERDAY THE DROP WHICH MEANS A LOSS OF 1125
FOR A BOND WITH A 1000 FACE VALUE PUSHED THE YIELD UP TO 744 FROM 735
WEDNESDAY

HEAVY ISSUANCE OF NEW CORPORATE DEBT CONTINUED AS 475 BILLION OF BONDS
WERE BROUGHT TO THE MARKET BY COMPANIES EAGER TO TAKE ADVANTAGE OF THE
LOWEST YIELDS IN MONTHS THE TOTAL SURPASSES WEDNESDAY'S NEW ISSUANCE TOTAL
THUS MAKING IT THE SECONDLARGEST SINGLEDAY ISSUANCE OF NEW CORPORATE DEBT
EVER THE RECORD WAS 52 BILLION ON JAN 8 1992 ACCORDING TO SECURITIES
DATA CO YESTERDAY'S ISSUANCE BRINGS THE WEEK'S TOTAL TO ABOUT 1125
BILLION

YESTERDAY'S TOTAL INCLUDES A 125 BILLION ISSUE OF NONCALLABLE 30YEAR
BONDS BY THE WORLD BANK THAT UNDERWRITERS FINISHED PRICING YESTERDAY MORNING
AND A 1 BILLION ISSUE OF TIME WARNER INC NONCALLABLE 20YEAR BONDS THE
LIST ALSO INCLUDED A 750 MILLION OFFERING OF NONCALLABLE SEVENYEAR NOTES
BY RJR NABISCO INC

A NUMBER OF BOND TRADERS SAID THAT THE HUGE VOLUME OF NEW CORPORATE ISSUANCE
PUT SOME ADDITIONAL PRESSURE ON THE TREASURY MARKET BECAUSE OF EXPECTATIONS
THAT IT WOULD LEAD TO HEDGING BUT MANY MONEY MANAGERS AND UNDERWRITERS
INSISTED THAT HEDGING WAS NOT AS BIG A FACTOR IN YESTERDAY'S PRICE LOSSES AS
MANY IN THE MARKET MAY HAVE BELIEVED

UNDERWRITERS CAN HEDGE BY SHORTSELLING TREASURYS WITH COMPARABLE
MATURITIES AN UNDERWRITER SHORT SELLS BY SELLING A BORROWED SECURITY IN THE
EXPECTATION THAT HE WILL ABLE TO BUY IT BACK AT A LOWER PRICE AND POCKET THE
DIFFERENCE BY SHORTSELLING THE UNDERWRITER CAN PROTECT HIMSELF AGAINST
PRICE DROPS IN THE VALUE OF CORPORATE BONDS HE PURCHASED FROM ISSUERS WHILE
HE IS SELLING THE BONDS TO INVESTORS

JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP SAID THAT THE
DOWNTURN IN THE TREASURY MARKET WAS MORE THE RESULT OF THE ECONOMIC NEWS
THAN UNDERWRITERS HEDGING AGAINST NEW CORPORATE ISSUANCE I THINK THAT
CERTAINLY THE CLAIMS REPORT CREATED A CRACK IN THE FUNDAMENTAL ECONOMIC
PICTURE THAT THE MARKET WAS RELYING ON HE SAID PEOPLE ARE STARTING TO
THINK THAT THE ECONOMY MIGHT BE STRONGER THAN IT HAS APPEARED TO BE SO FAR
SAID MR COSTAS

SINCE NOVEMBER INVESTORS IN THE BOND MARKETS HAVE TENDED TO GREET NEWS OF
ECONOMIC STRENGTH POSITIVELY BECAUSE THEY BELIEVED THAT THE ECONOMY WAS
GROWING SLOWLY SLUGGISH GROWTH THEY THEORIZED WOULD MEAN LESS OF A CHANCE
THAT PRESIDENTELECT CLINTON WOULD USE A HUGE SPENDING PACKAGE TO JUMPSTART
THE ECONOMY SUCH A PACKAGE FEARED INVESTORS COULD CAUSE HIGHER INFLATION
AND ENLARGE THE BUDGET DEFICIT BOTH OF WHICH ARE BAD FOR BONDS EVEN THOUGH
MANY ECONOMISTS STILL BELIEVE THAT THE ECONOMY IS JUST GROWING SLOWLY IT
APPEARS THAT INVESTORS ARE BEGINNING TO THINK IT'S GROWING MORE QUICKLY

SOME TRADERS ALSO BLAMED SPECULATORS FOR THE TREASURY PRICE DROPS THEY
EXPLAINED THAT SPECULATORS MAY HAVE SHORT SOLD TREASURYS IN ANTICIPATION OF
FURTHER PRICE DROPS GIVEN THE DEMAND WE'VE SEEN FOR NEW CORPORATE ISSUES
THIS WEEK SAID JAMES QUIGLEY MANAGING DIRECTOR OF THE CORPORATE NEW
ISSUANCE DESK AT MERRILL LYNCH & CO THE SELLING OF TREASURYS THAT THE
SPECULATORS WERE ANTICIPATING TO COME FROM THE CORPORATE SYNDICATE DESKS 
 ISN'T GOING TO HAPPEN

MR QUIGLEY SAID MANY INVESTORS ESPECIALLY SPECULATORS HAD ANTICIPATED
WEAKER DEMAND IN FACE OF THE FLOOD OF NEW CORPORATE ISSUANCE AS HAPPENED
LAST JANUARY AND THUS HELPED PUSH TREASURY BOND PRICES DOWN FURTHER AFTER
LOSING GROUND BECAUSE OF THE UNEMPLOYMENT CLAIMS REPORT

ACCORDING TO BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP A
MUTUAL FUND FIRM MANY NEW ISSUES PRICED ON WEDNESDAY INCLUDING THOSE FROM
MCI COMMUNICATIONS THE WORLD BANK AND TELECOMMUNICATIONS INC SAW THEIR
YIELD SPREADS OVER COMPARABLE TREASURYS NARROW AN INDICATOR OF GOOD DEMAND

PORTFOLIO MANAGER JIM SOMERS OF RADNOR PA THEORIZED THAT THE CRUSHING
WAVE OF NEW ISSUANCE MAY HAVE PUT PRESSURE ON THE TREASURY MARKET IN A
DIFFERENT WAY HE SAID THAT MANY BUYERS OF THE NEW CORPORATE ISSUES MAY HAVE
SOLD TREASURY BONDS OF COMPARABLE MATURITIES TO MAKE ROOM FOR THE NEW
ISSUES AND SINCE MANY OF THE NEW CORPORATE ISSUES HAD MATURITIES OF 20
YEARS OR MORE THE SELLING PRESSURED TREASURYS WITH LONGER MATURITIES EVEN
MORE

BUT STRONG DEMAND FOR NEW CORPORATE ISSUES EARLIER IN THE WEEK DID APPEAR TO
LOSE STRENGTH BY YESTERDAY AFTERNOON TRADERS NOTED THAT WHILE NARROWING
SPREADS IS A GOOD SIGN FOR NEW CORPORATE ISSUES WHICH HAVE BEEN COMPLETELY
SOLD IT CAN BE DEADLY FOR UNDERWRITERS WHO HAVE NOT YET SOLD THEIR HOLDINGS
OF NEW CORPORATE BONDS THIS IS BECAUSE THE NARROWING SPREADS MAKE THE NEW
CORPORATE BONDS MORE EXPENSIVE FOR BUYERS RELATIVE TO TREASURYS AND THUS
LESS ATTRACTIVE

WHEN TREASURYS PLUNGED SPREADS TIGHTENED AND THE CORPORATE BOND MARKET HIT
THE WALL SAID GEOFFREY KURINSKY A PORTFOLIO MANAGER AT MASSACHUSETTS
FINANCIAL BOND FUND NO ONE LIKES BUYING BONDS IN A RAPIDLY DETERIORATING
MARKET

MR KURINSKY SAID THAT YESTERDAY'S NEW CORPORATE ISSUES WERE SOLD AT MUCH
HIGHER PRICES THAN THOSE OFFERED EARLIER IN THE WEEK MANY OF THE DEALS
PRICED MONDAY AND TUESDAY WERE FAIRLY VALUED BUT YESTERDAY I THINK THE
STREET JUST GOT GREEDY

THE PRICE DROPS IN THE TREASURY MARKET COULD MAKE TODAY'S TRADING SESSION
MORE CHAOTIC THAN USUAL AFTER AN EMPLOYMENT REPORT THE EMPLOYMENT REPORT
FOR DECEMBER IS SCHEDULED TO BE RELEASED THIS MORNING AND WILL OFFER THE
FIRST OFFICIAL LOOK AT THE ECONOMY DURING THAT MONTH

TODAY'S NEWS IS GOING TO MAKE OR BREAK THE MARKET SAID JAY GOLDINGER A
TRADER AT CAPITAL INSIGHT INC OF BEVERLY HILLS CALIF BUT BARRING SOME
INCREDIBLY BULLISH NEWS HE ADDED PRICES ARE GOING TO GO LOWER

ECONOMISTS GENERALLY LOOK FOR NONFARM PAYROLLS TO HAVE CLIMBED 83000 OR
MORE LAST MONTH AND FOR THE CIVILIAN UNEMPLOYMENT RATE TO REMAIN UNCHANGED
AT 72 BASED ON THE AVERAGE ESTIMATE BY 12 ECONOMISTS SURVEYED BY DOW
JONES CAPITAL MARKETS REPORT

LATE IN THE DAY THE FEDERAL RESERVE RELEASED WEEKLY MONEY SUPPLY DATA THE
CLOSELYWATCHED M2 ROSE 37 BILLION IN THE WEEK ENDED DECEMBER 28 THUS
PUTTING ITS ANNUAL GROWTH RATE AT 19 STILL BELOW THE FED'S TARGETED RANGE
OF 25 TO 65 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS
AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000

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

THE BILLS ARE DATED JAN 14 AND MATURE JAN 13 1994

QUICKPACED SELLING DROVE PRICES LOWER AND ISSUES ENDED WITH LOSSES OF 1/2
TO A FULL POINT

WHILE THIS SESSION'S MARKET TREND HAD A LOT TO DO WITH THE PLUNGE IN
TREASURY BOND PRICES UNLOADING OF MUNIS WAS ALSO DRIVEN BY DISAPPOINTMENT
WITH THIS WEEK'S PERFORMANCE TRADERS SAY IT WAS WIDELY EXPECTED THAT MUNIS
WOULD SURGE EARLY IN THE NEW YEAR ON REINVESTMENT TRIGGERED BY AT LEAST 9
BILLION OF BOND CALLS JAN 1

WHILE PRICES OF SOME ISSUES DID RISE AS MUCH AS 1/2 POINT MONDAY IT DIDN'T
TAKE LONG FOR MUNIS TO START STALLING AT HIGHER LEVELS AND EVEN THOUGH
INDIVIDUALS HAVE BEEN SEEN REINVESTING AS ANTICIPATED SOME INSTITUTIONS
HAVE BEEN SIGHTED SELLING MUNIS THIS WEEK TRADERS SAY

WHEN MARKET PARTICIPANTS LOADED UP ON MUNIS LAST MONTH IN ANTICIPATION OF A
JANUARY RALLY THEY APPARENTLY GOT A LITTLE AHEAD OF THEMSELVES SAYS A
NEW YORK TRADER EVEN THOUGH THE MONTH HAS JUST STARTED TAXEXEMPT BOND
HOLDERS ARE CLEARLY JITTERY ABOUT THE MARKET'S PERFORMANCE HE SAYS

THE NEW YORK CITY TRIBOROUGH BRIDGE & TUNNEL AUTHORITY'S 550 OF 2017
SERIES Y GENERAL PURPOSE BONDS WERE AMONG THIS SESSION'S HARDEST HIT MUNIS
IN LATE TRADING THEY WERE DOWN 7/8 AT 91 3/492 THE YIELD FOR THOSE BONDS
CLIMBED TO 614 FROM 606 WEDNESDAY AFTERNOON

MORTGAGE SECURITIES TOOK A BEATING SLUMPING AT LEAST 5/8 OF A POINT IN
PRICE

BUT AS EARLIER IN THE WEEK THE MARKET CONTINUED TO PUT IN A BETTER SHOWING
THAN TREASURYS

WHILE 7 1/2 MORTGAGE SECURITIES FOR JANUARY DELIVERY LOST ABOUT 5/8 IF A
POINT 10YEAR TREASURY NOTES WERE AROUND 7/8 WEAKER GINNIE MAES WERE DOWN
5/8 AT 100 1/32 FREDDIE MAC GOLDS WERE 22/32 LOWER AT 100 AND FANNIE MAES
WERE OFF 22/32 AT 99 25/32

ONE CATALYST FOR PRICE DECLINES IN BOTH MARKETS WAS A SURPRISINGLY SHARP
DROP IN US JOBLESS CLAIMS WHICH HAS LED SOME MARKET PARTICIPANTS TO
EXPECT THAT THE LABOR MARKET MAY LOOK SOMEWHAT HEALTHIER THAN EXPECTED WHEN
DECEMBER PAYROLL FIGURES ARE RELEASED EARLY TODAY

IN ADDITION HEDGING AGAINST THIS WEEK'S ENORMOUS CORPORATE DEBT ISSUANCE 
WHICH MAY INVOLVE SALES OF TREASURY SECURITIES HAS HEIGHTENED SELLING
PRESSURE

NEVERTHELESS ONE TRADER CITED MUCH BETTER BUYING THAN SELLING ALL ACROSS
THE BOARD IN FAIRLY SIGNIFICANT SIZE IN THE MORTGAGE MARKET

DEALERS ARE BUYING COLLATERAL FOR DEALS CUSTOMERS ARE BUYING IN
ANTICIPATION OF DEALS THIS SUPPORT HAS HELPED MORTGAGE SECURITIES OUTPACE
TREASURYS

GENE COLTER CONTRIBUTED TO THIS ARTICLE 9301080075 930108 WHO'S NEWS 
TWO IBM AIDES SEEN AS POSSIBLE HEIRS TO AKERS  BY LAURENCE
HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL

INTERNATIONAL BUSINESS MACHINES CORP ELEVATED THREE EXECUTIVES TO ITS TOP
DECISIONMAKING PANEL MAKING TWO OF THEM CLEAR FRONTRUNNERS TO SUCCEED
JOHN AKERS AS CHIEF EXECUTIVE OF THE COMPUTER CONCERN

IBM NAMED SENIOR VICE PRESIDENTS BOB LABANT 47 YEARS OLD NED LAUTENBACH
48 AND PATRICK TOOLE 55 TO ITS MANAGEMENT COMMITTEE THE COMMITTEE HAD
CONSISTED ONLY OF MR AKERS 58 AND TWO OTHER MEN PRESIDENT JACK KUEHLER
60 AND FRANK METZ THE COMPANY'S 58YEAROLD CHIEF FINANCIAL OFFICER

ANALYSTS SAID THE MOVE ANNOINTS MESSRS LABANT AND LAUTENBACH AS THE TOP
CONTENDERS TO SUCCEED THE BELEAGUERED MR AKERS WHO IS SCHEDULED TO RETIRE
WHEN HE TURNS 60 AT THE END OF 1994 NEITHER MR KUEHLER NOR MR METZ ARE IN
LINE FOR THE TOP JOB AND MR TOOLE IS AN UNLIKELY CANDIDATE BECAUSE OF HIS
AGE

AS IBM SUFFERS THROUGH ITS WORSTEVER CRISIS HOWEVER NOTHING IS CERTAIN
LAST MONTH TWO FORMER IBM VICE CHAIRMEN RETURNED TO HELP RUN THE COMPANY
GIVING THEM A VOICE IN THE SUCCESSION IN ADDITION SOME CRITICS HAVE BEEN
PUSHING FOR MR AKERS'S OUSTER AND PERHAPS THE INSTALLATION OF AN OUTSIDER
AS CHIEF EXECUTIVE

IBM OFFICIALLY DISCOURAGED THE NOTION THAT THE PROMOTIONS REPRESENTED A STEP
IN ITS MUCHWATCHED SUCCESSION DRAMA BUT ANALYSTS SAID THE SIGNAL WAS
UNMISTAKEABLE BOTH MESSRS LABANT AND LAUTENBACH HAVE BEEN FREQUENTLY
MENTIONED AS POSSIBLE CHIEF EXECUTIVES AND A POST ON THE MANAGEMENT
COMMITTEE WITH ITS COMPANYWIDE PURVIEW PROVIDES AN IDEAL PRELUDE TO
RUNNING IBM

BY CONTRAST MR TOOLE'S PROMOTION WAS A VIRTUAL NECESSITY SINCE HE ALREADY
OVERSEES FIVE OF IBM'S DOZEN BUSINESS UNITS IN ADDITION MR KUEHLER IBM'S
TECHNOLOGICALLYORIENTED PRESIDENT IS EXPECTED TO RETIRE LATER THIS YEAR
LEAVING OPEN A SLOT FOR SOMEONE WITH MR TOOLE'S DEVELOPMENT KNOWHOW

THE APPOINTMENTS DON'T SIGNAL ANY BIG CHANGE IN POLICY AT IBM WHICH SOME
OBSERVERS HAVE SAID IS IN DIRE NEED OF NEW IDEAS AND EVEN NEW BLOOD
MESSRS LABANT AND LAUTENBACH ARE BOTH KNOWN AS LOYAL DEPUTIES AND
SUPPORTERS OF MR AKERS AND MR LABANT HAS EVEN SERVED AS MR AKERS'S
ADMINISTRATIVE ASSISTANT

THIS DOESN'T BODE WELL FOR ANYONE HOPING FOR RADICAL CHANGE AT IBM SAID
BOB DJURDJEVIC OF ANNEX RESEARCH A CONSULTANT AND IBM WATCHER BOTH OF
THEM WILL BE TRYING TO BE POLITICALLY CORRECT NOT ROCKING ANY BOATS

BUT WHILE MESSRS LABANT AND LAUTENBACH ARE UNSURPRISING CHOICES THE TIMING
OF THEIR ELEVATION IS A MILD SURPRISE AN IBM SPOKESMAN SAID THE
ANNOUNCEMENT WAS MADE ACCORDING TO MR AKERS'S LONGTIME PLAN BUT ANALYSTS
SAID IT CAME SLIGHTLY SOONER THAN EXPECTED AND SPECULATED THAT IBM'S BOARD
MIGHT HAVE PRESSURED THE EXECUTIVE TO FILL THE POWER VACUUM THAT EXISTED
DIRECTLY BELOW HIM

LAST YEAR MR AKERS HASTENED THE DEPARTURES OF THE TWO MEN WHO HAD BEEN
SEEN AS HIS MOST LIKELY SUCCESSORS MICHAEL ARMSTRONG AND GEORGE CONRADES
BOTH IN THEIR MID50S MR AKERS HAS SAID HE WANTED TO REACH DOWN TO A
YOUNGER GENERATION OF EXECUTIVES FOR HIS SUCCESSOR BUT THE APPARENT EFFECT
WAS TO WEAKEN IBM'S MANAGEMENT TEAM LEADING TO THE RECENT RETURN OF THE
TWO OLDTIMERS PAUL RIZZO AND KASPAR CASSANI

THE IBM SPOKESMAN SAID MR AKERS HAD RECEIVED NO BOARD PRESSURE ABOUT THE
PROMOTIONS ALTHOUGH THE DIRECTORS WERE NOTIFIED OF HIS DECISION AT A RECENT
MEETING

MESSRS LABANT AND LAUTENBACH ARE BOTH KNOWN AS ABLE EXECUTIVES ALBEIT WITH
DIFFERENT STRENGTHS MR LABANT WHO WILL RETAIN HIS CURRENT POST ATOP IBM'S
HUGE NORTH AMERICAN SALES AND MARKETING BUSINESS IS RENOWNED FOR HIS
NEARPRETERNATURAL CAREER TIMING IN HIS TWO MOST RECENT JOBS HE INHERITED
A MINICOMPUTER OPERATION THAT WAS JUST BECOMING KNOWN AS IBM'S BIGGEST
SUCCESS STORY AND A NORTH AMERICAN MARKETING GROUP THAT BENEFITED FROM THE
BESTPERFORMING ECONOMY IN A WEAK GLOBAL PICTURE

THE AMIABLE MR LABANT HASN'T MESSED UP ANY OF THOSE OPPORTUNITIES HOWEVER
AND IS SEEN AS A STEADY HAND WHO IS LIKED BY OTHER EXECUTIVES AND WHO
PROJECTS A GOOD PUBLIC IMAGE HIS RETENTION OF A LINEMANAGEMENT JOB WHILE
SERVING ON THE MANAGEMENT COMMITTEE IS A BREAK WITH RECENT IBM PRACTICE

THIS COULD REFLECT A DESIRE TO SLIM DOWN THE TOP RANKS SAID SAM ALBERT A
FORMER IBM EMPLOYEE WHO IS NOW A CONSULTANT BASED IN SCARSDALE NY

MR LAUTENBACH BY CONTRAST IS KNOWN AS AN UNEASY PUBLIC SPEAKER WHO IS AT
HIS MOST IMPRESSIVE IN ONEONONE MEETINGS WHILE WELL REGARDED FOR HIS
INTELLIGENCE HIS TIMING HASN'T BEEN GREAT AND HE HAS RUN SEVERAL BUSINESSES
THAT HAVEN'T BEEN RIPROARING SUCCESSES MOST RECENTLY LANDING IN IBM'S
BIG ASIAN MARKETING ARM JUST AS JAPAN'S ECONOMIC BUBBLE BURST

STILL MR LAUTENBACH HAS BEEN ON IBM'S FAST TRACK THROUGHOUT HIS CAREER AND
IS KNOWN AS A FAVORITE OF MR AKERS AND OTHER TOP IBM STAFFERS HIS OLDER
BROTHER TERRY RECENTLY RETIRED FROM THE COMPANY'S MANAGEMENT COMMITTEE

MR LAUTENBACH WILL BECOME THE MANAGEMENT COMMITTEE'S LEADING
INTERNATIONALIST TAKING RESPONSIBILITY FOR OVERSEEING IBM'S OPERATIONS
OUTSIDE THE US AND CANADA IN ESSENCE HE IS THE SUCCESSOR TO MR
ARMSTRONG WHO NOW RUNS GENERAL MOTORS CORP'S HUGHES AIRCRAFT DIVISION

THE LATEST APPOINTMENTS SEEM TO INDICATE THAT THREE RECENTLY PROMOTED SENIOR
VICE PRESIDENTS PERSONAL COMPUTER CHIEF JIM CANNAVINO
SOFTWAREANDSERVICES EXECUTIVE BERNARD PUCKETT AND NETWORKING HEAD ELLEN
HANCOCK HAVE DROPPED A LAP BEHIND IN THE RACE TO SUCCEED MR AKERS

STILL WITH IBM SET TO REPORT A HUGE FOURTHQUARTER LOSS ON JAN 19 AND THE
STOCK DROPPING TO 17YEAR LOWS NO SUCCESSION SCENARIO CAN BE CALLED FIRM
ANALYSTS SAID MESSRS LABANT AND LAUTENBACH COULD BECOME TAINTED IF IBM
BASED IN ARMONK NY DOESN'T START TURNING AROUND SOON OR IF MR AKERS
THEIR SPONSOR LOSES HIS GRIP ON THE COMPANY

IBM SAID MR LAUTENBACH'S SUCCESSOR AS PRESIDENT OF IBM'S ASIA PACIFIC
OPERATION WILL BE ROBERT STEPHENSON A 54YEAROLD VICE PRESIDENT WHO HAD
BEEN SERVING AS HEAD OF A DIVISION IN MR PUCKETT'S ORGANIZATION

LIKE MR LABANT MR TOOLE WHO OVERSEES MANUFACTURING AND DEVELOPMENT FOR
IBM WILL RETAIN HIS POSITION WHILE HE ASCENDS TO THE MANAGEMENT COMMITTEE
AMONG HIS RESPONSIBILITIES IS IBM'S MAINFRAME BUSINESS WHICH IS DESPERATELY
TRYING TO REINVENT ITSELF AND SPARK A BIG BLUE COMEBACK 9301080074 930108
BARRIO BRIGADES A MEXICAN PROGRAM TO SPUR DEVELOPMENT SHOWS MUCH
PROGRESS  FOR LOCAL PUBLIC PROJECTS PEOPLE SUPPLY THE LABOR 
GOVERNMENT THE MATERIAL  OTHER NATIONS ARE INTRIGUED  BY MATT
MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL

MEXICO CITY THE COLONIALSTYLE MANSIONS AND COBBLED STREETS OF THE SAN
ANGEL DISTRICT HERE ARE MONUMENTS OF A SORT TO INEQUITIES BETWEEN RICH AND
POOR IN MEXICO MUCH OF THE STONE AND BRICKMAKING SAND USED TO BUILD THE
OPULENT NEIGHBORHOOD CAME FROM THE SURROUNDING SLUMS SCOOPED OUT OF MINES
THAT TURNED MANY OF THE BARRIOS INTO TREACHEROUS MOONSCAPES THAT FLOODED IN
RAINSTORMS

NOT LONG AGO HOWEVER A GOVERNMENT OFFICIAL CAME TO THE SLUMS WITH A
PROPOSITION THE NATIONAL SOLIDARITY PROGRAM A NEW ANTIPOVERTY AGENCY
WOULD PROVIDE CEMENT PIPE AND A CIVIL ENGINEER TO PAVE THE STREETS AND LAY
A DRAINAGE LINE THERE WAS ONE CATCH THE NEIGHBORS WOULD HAVE TO DO THE
CONSTRUCTION THEMSELVES

THE ONLY QUESTION WE HAD SAYS PILAR RAMOS A HOUSEWIFE IN ONE FLOODPRONE
AREA WAS HOW SOON COULD WE BEGIN FOR SIX MONTHS MEN WOMEN AND CHILDREN
LABORED ON WEEKENDS HOLIDAYS AND EVEN ON THE FEAST DAY OF THE VIRGIN OF
GUADALUPE WHEN THEY HAD FINISHED WITH THEIR TROWELS ON THE LAST UNPAVED
STREET IN MRS RAMOS'S NEIGHBORHOOD THEY SCRAWLED A DEDICATION IN THE WET
CEMENT THIS PROJECT BEGAN JULY 9 1990 AND WAS FINISHED FEBRUARY 16
1991 WITH THE COOPERATION OF EVERYBODY

THE SOLIDARITY PROGRAM IS THE FULCRUM OF PRESIDENT CARLOS SALINAS DE
GORTARI'S EFFORT TO ENSURE THAT THE BENEFITS FROM MEXICO'S FREEMARKET
ECONOMIC RENAISSANCE REACH THE VERY POOR AND THE DOITYOURSELF ANTIPOVERTY
PLAN HAS BEEN SUCH A SUCCESS THAT HARDWARE STORES CAN SCARCELY KEEP PICKS
AND SHOVELS IN STOCK

IN FOUR YEARS NEIGHBORHOOD BUILDING BRIGADES HAVE REFURBISHED 75000
SCHOOLS AND PAVED THOUSANDS OF MILES OF STREETS COMMUNITIES HAVE ALSO
PLAYED A MAJOR SUPPORTING ROLE IN HEAVIER PROJECTS THAT HAVE BROUGHT
ELECTRICITY AND POTABLE WATER TO MORE THAN 10 MILLION PEOPLE AND DRAINAGE
SERVICES TO ANOTHER EIGHT MILLION BARRIOS ARE EVEN STARTING SMALL
BUSINESSES WITH THE AID OF A SOLIDARITY VENTURECAPITAL FUND WHICH ALREADY
HAS HELPED FINANCE SOME 2400 ENTERPRISES BECAUSE CITIZEN PARTICIPATION
MINIMIZES LABOR COSTS AND REDUCES WASTE THE PROGRAM'S 9 BILLION PRICE TAG
IS FAR LESS THAN WHAT THE GOVERNMENT WOULD HAVE PAID TO DO THE WORK ITSELF

CITIZEN INVOLVEMENT ELIMINATES MANY VICES OFTEN ASSOCIATED WITH SOCIAL
SPENDING SAYS MABEL NIETO DE AGUILAR DIRECTOR OF COSTA RICA'S DEVELOPMENT
EFFORT THERE ARE LOTS OF LESSONS FOR US IN MEXICO'S PROGRAM A SCORE OF
OTHER DEVELOPING COUNTRIES MOSTLY IN LATIN AMERICA BUT ALSO INCLUDING CHINA
AND INDIA HAVE SENT DELEGATIONS HERE TO LEARN THEM ALREADY ARGENTINA HAS
STARTED AN ANTIPOVERTY PROGRAM THAT TAKES ITS SELFHELP EMPHASIS AND ITS
NAME FROM MEXICO'S

THE KEEN INTEREST IN SOLIDARITY COMES AS LATIN AMERICAN GOVERNMENTS MOVE
FROM BATTLING DEPRESSION TO THE NEW CHALLENGE OF SPREADING THE BENEFITS OF
PROSPERITY I AM CONVINCED THAT THERE ISN'T A SUCCESSFUL ECONOMIC STRATEGY
WITHOUT A WELLPLANNED SOCIAL PROGRAM ACCOMPANYING IT MR SALINAS SAID IN
AN INTERVIEW LAST MONTH TODAY HE WILL MEET WITH PRESIDENTELECT CLINTON IN
TEXAS TO DISCUSS THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT WHICH HAS
BEEN THE CATALYST FOR MEXICO'S RECENT ECONOMIC SUCCESS

EVEN THOUGH THE REGION HAS HAD FASTER ECONOMIC GROWTH THAN THAT OF THE
LEADING INDUSTRIALIZED COUNTRIES FOR TWO YEARS RUNNING THE EXPECTATIONS OF
IMPOVERISHED LATIN AMERICANS MAY BE RISING EVEN FASTER THAN THEIR LIVING
STANDARDS THAT'S CLEARLY TRUE IN VENEZUELA WHOSE GOVERNMENT RECENTLY
FENDED OFF ANOTHER COUP ATTEMPT ITS ECONOMIC GROWTH HAS AVERAGED NEARLY 10
SINCE 1990 BUT IN A RECENT POLL 90 OF THE PEOPLE SAID THE GOVERNMENT'S
ECONOMIC POLICIES FAVOR THE RICH

HISTORICALLY MEXICO ITSELF HAS BEEN FAR FROM A MODEL OF EQUITY A 1989
SURVEY SHOWED THAT THE RICHEST 10 EARNED AS MUCH AS THE POOREST 70
MEASURES OF SOCIAL WELFARE HAVE BEEN SIMILARLY SKEWED THE INHABITANTS OF
MEXICO'S MOST PROSPEROUS STATES LIVE ON AVERAGE A DECADE LONGER THAN THOSE
OF ITS POOREST ONES SAYS ADOLFO CHAVEZ A PUBLICHEALTH EXPERT

AND ALTHOUGH SOLIDARITY FAVORS THE POOR OTHER FACETS OF MEXICO'S PRESENT
ECONOMIC POLICY CLEARLY TILT TOWARD THE RICH MEXICO'S MOVE TO DISMANTLE
TRADE BARRIERS BENEFITS BUSINESSES LARGE ENOUGH TO COMPETE AT HOME AND IN
FOREIGN MARKETS THUS THE NUMBER OF MEXICANS ON FORBES MAGAZINE'S
BILLIONAIRE LIST GREW LAST YEAR TO SEVEN FROM TWO IN 1991 AND TOPPED THE
UNITED KINGDOM'S TOTAL PRESIDENT SALINAS'S POLICIES ALSO BENEFIT PEOPLE
WITH THE CAPITAL TO PLAY MEXICO'S FINANCIAL MARKETS AND THEY ARE JUST A
TINY MINORITY OF THE 85 MILLION MEXICANS INDEED HALF THE ASSETS OF
MEXICO'S BANKING SYSTEM SIT IN ONLY 18600 ACCOUNTS

CAN SOLIDARITY OR ANY GOVERNMENT PROGRAM LESSEN SUCH HUGE DISPARITIES
WARY OF THE RUINOUS POPULISM OF THE 1970S AND 1980S THE TECHNOCRATS RUNNING
MEXICO TODAY DON'T PROMISE MIRACLES GOVERNMENT CANNOT GUARANTEE EQUITABLE
INCOME DISTRIBUTION FINANCE MINISTER PEDRO ASPE SAYS WHAT GOVERNMENT CAN
AND SHOULD DO IS GUARANTEE BETTER DISTRIBUTION OF OPPORTUNITIES

OPPORTUNITY IS ALL THAT SOLIDARITY BENEFICIARIES SUCH AS RAMON CONTRERAS SAY
THEY WANT MR CONTRERAS WAS ONE OF HUNDREDS LAID OFF FROM NORTHWEST
MEXICO'S HUGE CANANEA COPPER MINE AFTER THE GOVERNMENT SOLD IT TO PRIVATE
INVESTORS IN 1990 SO HE COMBINED HIS OWN SAVINGS WITH VENTURE CAPITAL FROM
SOLIDARITY TO OPEN A SMALL GARMENTMAKING SHOP IT HURTS TO LOSE YOUR JOB
HE SAYS BUT AT LEAST SOLIDARITY IS HELPING US START AGAIN

HIS EVOLUTION FROM SUPERFLUOUS PUBLIC EMPLOYEE TO SELFEMPLOYED ENTREPRENEUR
IS THE REALIZATION OF ECONOMIC THEORIES THAT MEXICO'S CURRENT LEADERS HAVE
BEEN REFINING FOR TWO DECADES FINANCE MINISTER ASPE WROTE EXTENSIVELY ON
WEALTH DISTRIBUTION AS A COLLEGE PROFESSOR DURING THE 1970S AT THAT TIME
MEXICO'S GOVERNMENT WAS RAPIDLY EXPANDING ITS ROLE IN THE ECONOMY ACQUIRING
EVERYTHING FROM STEEL MILLS TO MOVIE THEATERS MR ASPE A LONELY VOICE OF
SKEPTICISM WAS CONTENDING THAT IT WAS ABSURD FOR THE GOVERNMENT TO BE
OPERATING AIRLINES WHEN IT COULDN'T EVEN PROVIDE RUNNING WATER FOR 30 OF
THE POPULATION

THE DEBT CRISIS OF THE 1980S VINDICATED MR ASPE'S CRITICISM AND HE WAS
BROUGHT INTO THE GOVERNMENT TO CLEAN HOUSE AS FINANCE MINISTER HE HAS SOLD
OR LIQUIDATED ALL BUT 200 OF THE 1155 COMPANIES THE GOVERNMENT OWNED IN
1982 HE HAS USED THE 14 BILLION PROCEEDS FROM PRIVATIZATION TO REDUCE THE
GOVERNMENT'S BORROWINGS ON THE MEXICAN MARKET AND THE INTEREST SAVINGS ARE
BEING USED TO RAISE SOCIAL SPENDING WHICH NOW TAKES UP 50 OF THE BUDGET
COMPARED TO ABOUT 25 TWO DECADES AGO

AT THAT TIME HE SAYS WE WERE SPENDING A LOT OF MONEY ON THINGS NOW WE'RE
SPENDING ON PEOPLE

BUT HISTORICALLY MEXICAN SOCIAL PROGRAMS HAD OFTEN SPENT MONEY IN WAYS THAT
BENEFITED THE BUREAUCRATS WHO RAN THEM MORE THAN THE POOR WHO NEEDED THEM
THAT ANYWAY WAS THE UNCONVENTIONAL WISDOM ESPOUSED BY A YOUNG GRADUATE
STUDENT NAMED CARLOS SALINAS DE GORTARI WHO WROTE HIS UNIVERSITY THESIS ON
A GOVERNMENT ROADBUILDING PROGRAM DURING THE 1970S HIS CONCLUSION THE
STATE MUST DELEGATE TO RESPONSIBLE LOCAL OFFICIALS THE RESOURCES NECESSARY
TO GUARANTEE THE TIMELY AND COMPLETE EXECUTION OF PROJECTS INVOLVING PUBLIC
SPENDING AND HE WARNED A STATE WHICH DOES NOT PERMIT THE PARTICIPATION
OF ITS CITIZENS RUNS THE RISK OF LOSING NOT ONLY INSTRUMENTAL EFFICIENCY BUT
ALSO ITS VERY LEGITIMACY

BY THE TIME MR SALINAS BECAME THE PRESIDENTIAL CANDIDATE OF THE RULING
INSTITUTIONAL REVOLUTIONARY PARTY IN 1988 THE POLITICAL SYSTEM'S LEGITIMACY
HAD BECOME SO SHAKY THAT HE ALMOST DIDN'T GET A CHANCE TO TRY OUT HIS
THEORIES HE EKED OUT A NARROW DISPUTED VICTORY

THE EMBATTLED PRESIDENT'S VERY FIRST ACT IN OFFICE WAS TO CREATE SOLIDARITY
 AMID MUCH SKEPTICISM WHEN OSCAR LEVIN THE MUNICIPAL OFFICIAL IN CHARGE
OF THE BARRIOS AROUND SAN ANGEL TRIED TO DRUM UP SUPPORT FOR THE PROGRAM
HE FACED CATCALLS THREATS AND A KIDNAPPING ATTEMPT BUT THE ABUSE STOPPED
THE DAY THE FIRST CEMENT WAS DELIVERED TO THE BARRIOS THEN PEOPLE GOT
RIGHT TO WORK HE SAYS

THE PROGRAM CAUGHT ON SO QUICKLY THAT NOW 60000 SOLIDARITY COMMITTEES ARE
BUILDING EVERYTHING FROM SCENIC ROADS FOR TOURISTS IN MOUNTAINOUS MICHOACAN
TO RECYCLING CENTERS IN THE HEAVILY POLLUTED CAPITAL HERE AND THE PRICE HAS
BEEN A BARGAIN SOLIDARITY ROADBUILDING PROJECTS ACCORDING TO CARLOS
ROJAS WHO HEADS THE SOLIDARITY PROGRAM COST JUST 70 OF WHAT THE
GOVERNMENT USED TO PAY TO DO THE JOBS THE PROGRAMS' SCHOOLREPAIR COSTS
AVERAGE ONLY 60 OF EARLIER OUTLAYS WHILE MEXICO HAS SET UP LATIN AMERICA'S
LARGEST SOCIAL PROGRAM IT ALSO HAS ATTAINED ITS FIRST FEDERAL BUDGET
SURPLUS

THE MAIN CRITICISM OF SOLIDARITY IS THAT IT HAS BECOME YET ANOTHER TOOL FOR
THE RULING PARTY TO WIN ELECTIONS THE PROGRAM HAS BEEN ESPECIALLY ACTIVE IN
LEFTIST STRONGHOLDS ANALYSTS SAY TO COOPT OPPONENTS

GOVERNMENT OFFICIALS SAY THEY AREN'T BUYING VOTES BUT ARE SIMPLY EDUCATING
MEXICANS ON THE BENEFITS OF THE PARTY'S POLICIES WHEN MR SALINAS VISITS
COMMUNITIES TO DEDICATE NEW SOLIDARITY PROJECTS HE NEVER FAILS TO MENTION
THAT THE MONEY CAME FROM THE PRIVATIZATION PROGRAM

THE MESSAGE IS SINKING IN DESPITE LONG EXPOSURE TO STATIST RHETORIC A
MAJORITY OF MEXICANS IN A RECENT SURVEY SAID THEY BELIEVED THE SALE OF
STATEOWNED ENTERPRISES WAS GOOD FOR AVERAGE PEOPLE WE WANT TO BUILD SUCH
A STRONG BASE OF SUPPORT FOR FREEMARKET POLICIES THAT MEXICO NEVER RETURNS
TO THE OLD PATERNALISTIC WAY OF DOING THINGS SAYS OSCAR ESPINOSA HEAD OF
THE STATE DEVELOPMENT BANK

A RETURN TO THAT PAST SEEMS UNLIKELY FOR THE RESIDENTS OF A BARRIO OUTSIDE
SAN ANGEL CALLED LIBERALES DE 1857 ITS 60 OR SO FAMILIES USED THE
SOLIDARITY PROGRAM TO OBTAIN CONSIDERABLE SELFSUFFICIENCY AFTER TWO DECADES
OF ALMOST FEUDAL OPPRESSION UNDER A POLITICAL BOSS NAMED ANTONIO ARROYO
BACK IN THE 1970S WHEN LIBERALES WAS FORMED AS A SQUATTER SETTLEMENT MR
ARROYO PULLED THE STRINGS TO HELP FAMILIES OBTAIN LAND BUT IN RETURN HE
FORCED RESIDENTS TO SIGN AN AGREEMENT GIVING HIM ALMOST ABSOLUTE CONTROL
OVER THE BARRIO

MR ARROYO WHO DECLINED TO BE INTERVIEWED BUILT HIGH BRICK WALLS TO
ISOLATE THE NEIGHBORHOOD AND HUNG LOUDSPEAKERS ON LIGHT POSTS TO HARANGUE
RESIDENTS WHO DIDN'T PAY MONTHLY DUES BUT HE STUBBORNLY REFUSED TO PROVIDE
PAVEMENT OR DRAINAGE

THE LAST STRAW CAME A COUPLE OF YEARS AGO WHEN MR ARROYO SAID HE WOULD
FINALLY BE WILLING TO PAVE THE STREETS FOR 700 PER FAMILY WE DECIDED
THAT WE HAD HAD ENOUGH SAYS ROSA MARIA HERNANDEZ AN ACCOUNTANT WHO FEARED
HER THREE SMALL CHILDREN MIGHT DROWN IN THE SWAMPS THAT FORMED OUTSIDE HER
HOUSE IN RAINSTORMS INFURIATED SHE LED A GROUP OF NEIGHBORS THAT SOUGHT
HELP FROM SOLIDARITY

TURNING TEACHERS CLERKS AND COOKS INTO A CONSTRUCTION CREW WASN'T EASY
HOWEVER WHEN THEY FIRST TRIED MIXING CEMENT THEY USED AN ENTIRE 50POUND
SACK FOR JUST A SHORT STRETCH OF SIDEWALK AND THE SIDEWALK SOON CRUMBLED

BUT AFTER LEARNING FROM THEIR MISTAKES THE PEOPLE OF LIBERALES PAVED ALL 18
STREETS IN THE BARRIO IN JUST SIX MONTHS THE BENEFITS WERE IMMEDIATE THE
ONCEMENACING STREET GANGS CEASED TO BE A SERIOUS PROBLEM BECAUSE NOW POLICE
CARS COULD PATROL FORMERLY IMPASSABLE ROADS

ENCOURAGED THE COMMUNITY TOOK ON A BIGGER PROJECT A 40FOOTHIGH RETAINING
WALL THAT WOULD PREVENT SOME HOUSES PERCHED ON A HILL FROM SLIDING INTO A
GORGE EARLY ONE SUNDAY WITH ABOUT 25 NEIGHBORS GATHERED AROUND THE NEARLY
COMPLETED WALL MRS HERNANDEZ TOOK ATTENDANCE AND THEN READ THE RIOT ACT
TO A WORKER WHO HAD ALLOWED SOME CEMENT TO GET WET YOU'LL HAVE TO PAY FOR
THIS BECAUSE IT BELONGS TO ALL OF US SHE TOLD HIM

THEN THEY WENT TO WORK SOME SHOVELED DIRT OVER THE BASE OF THE WALL WHILE
OTHERS SWUNG AXES AT AN OBSTRUCTING TREE STUMP AND ALREADY THEY ARE
CLEARING SPACE ON THE HILLTOP ABUTTING THE RETAINING WALL FOR A COMMUNITY
CENTER TO BE ANCHORED BY THE WALL NO ONE FROM OUTSIDE THE BARRIO WOULD
HAVE THOUGHT OF GETTING DOUBLE USE OUT OF THE WALL THAT WAY SAYS OMAR
GARPIAS A SOLIDARITY OFFICIAL

THE COMMUNITY IS ALSO SEEKING FINANCING FOR A LOCALLY RUN FACTORY THAT WOULD
MAKE METAL MOLDS FOR DRAINAGE PIPE MRS HERNANDEZ HOPES TO GET 35 OF THE
25000 INITIAL INVESTMENT FROM THE SOLIDARITY VENTURECAPITAL FUND AND THE
REST FROM COMMUNITY MEMBERS AND PRIVATE BANKERS THE IDEA FOR THE FACTORY
GREW OUT OF THE COMMUNITY'S OBSERVATION THAT WITH ALL THE CONSTRUCTION
GOING ON IN MEXICO THE MARKET FOR BUILDING MATERIALS IS BOOMING MAYBE
WE'RE CRAZY BUT WE ALREADY TAUGHT OURSELVES TO BECOME ENGINEERS AND
CONSTRUCTION WORKERS SAYS MRS HERNANDEZ BRANDISHING AN INCHTHICK
BUSINESS PLAN WHY CAN'T WE BECOME ENTREPRENEURS TOO 9301080073 930108
POWER UTILITIES STILL CURBING RISING DEMAND  COMPANIES TRY TO
DELAY SPENDING BY STRETCHING CAPACITY SURVEY FINDS  BY DAVE
KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK POWER UTILITY COMPANIES ARE CONTINUING TO DELAY NEW CAPITAL
SPENDING AND DEVELOP STRATEGIES TO REDUCE GROWTH IN CONSUMER DEMAND AND
STRETCH EXISTING GENERATING CAPACITY

IN ITS ANNUAL SURVEY OF PUBLIC UTILITIES ACCOUNTING FIRM PRICE WATERHOUSE
FOUND THAT ONLY 11 COMPANIES INDICATE THEY PLAN CONSTRUCTION OF NEW
FACILITIES TO MEET INCREASED DEMAND DOWN FROM 19 COMPANIES WITH SUCH PLANS
A YEAR EARLIER THE SURVEY IS BASED ON REGULATORY FILINGS BY 100 PUBLIC
UTILITY COMPANIES

INSTEAD UTILITIES ARE PLACING GREATER EMPHASIS ON CONSERVATION STRATEGIES
TO STEM GROWTH IN CONSUMER DEMAND BY ENCOURAGING SLOWER GROWTH UTILITIES
ARE ABLE TO PUT OFF CAPITAL COSTS NEEDED TO SUPPLY GREATER CAPACITY
TWENTYTWO COMPANIES CITED REGULATORS AS AN INFLUENCE IN DEVELOPING
ALTERNATIVE REVENUE PROGRAMS UP FROM 13 A YEAR AGO

SUCH PROGRAMS HAVE INCREASED DRAMATICALLY DURING THE PAST FEW YEARS THE
REPORT SAID IT FOUND 50 UTILITIES CURRENTLY USE SOME SORT OF ALTERNATIVE
REVENUE PROGRAM AND AN ADDITIONAL 16 ARE MOVING TOWARD SUCH PLANS OR INTEND
TO EXPAND THEM

ALTERNATIVE REVENUE PROGRAMS GENERALLY REFER TO STEPS TAKEN TO REDUCE
SPENDING OR AFFECT DEMAND BY IMPROVING CONSERVATION STRATEGIES IN NORTH
CAROLINA FOR INSTANCE CAROLINA POWER & LIGHT CO SAID IT PLANS TO DELAY
LARGE BASELOAD PLANT CONSTRUCTION AS LONG AS PRACTICABLE THROUGH PROGRAMS
TO REDUCE CUSTOMER LOAD PURCHASE POWER FROM OTHER UTILITIES AND CONSTRUCT
SMALL GENERATING UNITS FOR TIMES OF HIGH CUSTOMER DEMAND ILLINOIS POWER CO
SAID GREATER EMPHASIS ON DEMANDSIDE PROGRAMS AND COGENERATION FACILITIES
WILL ALLOW IT TO AVOID ADDING MAJOR NEW GENERATING CAPACITY DURING THE
REMAINDER OF THE DECADE

PRICE WATERHOUSE ALSO FOUND MANY ALTERNATIVE STRATEGIES BECOMING PART OF
INNOVATIVE RATE STRUCTURES SEVENTYFOUR UTILITIES SURVEYED REPORTED RATE
STRUCTURES THAT CARRIED INCENTIVE OR INNOVATIVE DESIGNS TO SOME EXTENT UP
FROM 65 COMPANIES IN 1990

REGULATORS ALLOWED OHIO'S CENTERIOR ENERGY CORP THROUGH ITS TOLEDO EDISON
UNIT TO OFFER SOME CUSTOMERS INCENTIVES WHEN THEY MAKE INVESTMENTS TO
EXPAND IN THE AREA THE PLAN ENCOURAGED MORE THAN 50 COMPANIES TO MAKE MORE
THAN 150 MILLION IN CAPITAL INVESTMENTS CREATING 1800 JOBS AND RETAINING
23000 KILOWATTS OF LOAD AT THE UTILITY

REGULATORS ALLOWED UTILITY RETURNS ON INVESTMENT TO DROP IN 1991 BUT MUCH
OF THAT DECLINE COULD BE ATTRIBUTED TO LOWER INTEREST RATES PRICE
WATERHOUSE SAID REGULATORS ALLOWED AN AVERAGE RATE OF RETURN ON INVESTMENT
OF 124 IN 1991 DOWN FROM AN AVERAGE RATE OF RETURN ON INVESTMENT OF 128
IN 1990 THE SURVEY ALSO FOUND THOSE UTILITIES SEEKING RATE INCREASES
RECEIVED ABOUT 55 OF THEIR REQUEST ON AVERAGE IN 1991 UTILITIES HAD 67
RATE CASES PENDING ON APPEAL OR ABOUT TO BE FILED DOWN FROM 1990'S 95
CASES

WHILE SOME UTILITIES COMPLAIN ABOUT INCREASED COMPETITION FROM INDEPENDENT
POWER PRODUCERS OTHERS SUCH AS GEORGIA'S SOUTHERN CO ARE ENTERING THE
INDEPENDENT POWER BUSINESS OR SUPPORTING IT IF INDEPENDENT POWER
PRODUCTION IS GOING TO ACCOUNT FOR A SIGNIFICANT SHARE OF THE NEW POWER
SUPPLY IN THE COUNTRY WE INTEND TO BE A MAJOR PLAYER THE SURVEY QUOTED A
SOUTHERN FILING

CONSOLIDATION CONTINUES WITH MORE THAN 15 COMPANIES INVOLVED IN MERGERS OR
ACQUISITIONS IN 1991 BUT DIVERSIFICATION REMAINED PRACTICALLY UNCHANGED IN
1991 87 OF 100 COMPANIES REPORTED BEING INVOLVED IN ONE OR MORE
NONREGULATED ACTIVITIES COMPARED WITH 88 A YEAR EARLIER TWO UTILITIES SAID
THEY DROPPED NONREGULATED BUSINESS DUE TO FINANCIAL PROBLEMS IN ORDER TO
CONCENTRATE ON UTILITY BUSINESSES

DOMINION ENERGY A UNIT OF VIRGINIA'S DOMINION RESOURCES INC DIVERSIFIED
INTO THE INTERNATIONAL ENERGY MARKET WINNING A CONTRACT IN BELIZE AND AN
AMERICAN ELECTRIC POWER UNIT IN COLUMBUS OHIO INVESTED IN A COMPANY
DEVELOPING ELECTRONIC LIGHT BULBS THAT WOULD UTILIZE ELECTRICAL INDUCTION TO
PRODUCE LIGHT

DISCLOSURE OF HAZARDOUS WASTE PROBLEMS ROSE IN 1991 AND THE INCOMING CLINTON
ADMINISTRATION IS LIKELY TO INCREASE ENVIRONMENTAL SCRUTINY OF THE INDUSTRY
THE REPORT SUGGESTED

ONE BENEFICIARY OF ENVIRONMENTAL HAWKISHNESS IN THE NEW ADMINISTRATION COULD
BE THE BELEAGUERED NATURAL GAS INDUSTRY NATURAL GAS PRICES HAVE REMAINED
EXTREMELY LOW BECAUSE OF ABUNDANT SUPPLY BUT FUTURE EMPHASIS ON
ENVIRONMENTAL ISSUES COULD SPUR DEMAND FOR THE CLEANERBURNING FUEL THE
SURVEY SAID 9301080072 930108 POTOMAC WATCH CLINTON CABINET INCLUDES
AGENTS OF SMALL CHANGE  BY PAUL A GIGOT

THE CLINTON ERA HAS ONLY JUST BEGUN BUT CHANGE IS ALREADY PALPABLE FOR
EXAMPLE SPECIALINTEREST LOBBYING WHICH WAS ONLY RECENTLY A CLINTON
CAMPAIGN TARGET HAS SUDDENLY BECOME A PRIZED CREDENTIAL

IT SENDS THE RIGHT MESSAGE COMMERCE SECRETARYDESIGNATE RON BROWN TOLD
THE SENATE THIS WEEK ABOUT HIS LAWYERLOBBYIST PAST IT SENDS THE MESSAGE
I'M A GOOD ADVOCATE WHO GETS THINGS DONE

HMMM TWO MONTHS AGO MR BROWN WOULD HAVE QUALIFIED AS AN INFLUENCE
PEDDLER IN MR CLINTON'S CAMPAIGN RHETORIC NOW HE'S A CANDO STATESMAN BY
THIS STANDARD OF REHABILITATION MAYBE MIKE DEAVER SHOULD ASK BILL CLINTON
FOR A JOB

MR BROWN'S TRANSMUTATION IS ONLY ONE SIGN THAT THE REALITY OF WASHINGTON IS
NOW IMPOSING ITSELF ON MR CLINTON'S LITTLE ROCK IDYLL THE SEEMINGLY
INNOCENT CHOICE OF SENDING HIS DAUGHTER CHELSEA TO AN ELITE PRIVATE SCHOOL
BECOMES A SYMBOL FOR LEFT AND RIGHT BOTH OF HYPOCRISY THE VOW TO SLASH
THE WHITE HOUSE STAFF BY 25 IS SUDDENLY BEING RETHOUGHT THE DEFICIT TURNS
OUT TO BE BIGGER THAN ANTICIPATED SO THE PLEDGE TO CUT IT IN HALF IS IN
DOUBT EVEN AS SPENDERS FROM CONGRESS MARCH INTO CRUCIAL SUBCABINET JOBS

MEANWHILE MR CLINTON'S CHOICE AS SECRETARY OF STATE WARREN CHRISTOPHER
IS MEETING TODAY WITH NEOCONSERVATIVE DEMOCRATS WHO ARE WORRIED ABOUT THE
SHAPE OF THE CLINTON FOREIGNPOLICY TEAM NEOCON SUPPORT WAS CRITICAL
DURING THE CAMPAIGN IN GIVING MR CLINTON CREDIBILITY AS A NEW DEMOCRAT

BUT THEY'VE SINCE WATCHED VIRTUALLY EVERY SENIOR POLICY SLOT GO TO FORMER
CARTER OFFICIALS EVEN JAMES WOOLSEY THE CIA DIRECTORDESIGNATE AND THE
ONLY NEOCON NAMED SO FAR WILL BE ON THE PERIPHERY OF POLICY THE RUMORED
CHOICE OF PETER TARNOFF A CARTERITE WHO WAS WRONG ABOUT THE GULF WAR FOR
STATE'S CRUCIAL NO 3 POST SET OFF A MINIREBELLION

THE NEOCON WORRY IS ABOUT MORE THAN DIVIDING SPOILS JOBS IT'S ABOUT THE
DIVERSITY OF ADVICE MR CLINTON WILL HEAR MR CHRISTOPHER IS ASSEMBLING A
CAUTIOUS TEAM WHOSE INSTINCTS EVEN DURING THE SHOWDOWN WITH IRAQ WERE TO
ASSERT DIPLOMACY AS THE HIGHEST VALUE IN FOREIGN POLICY THE NEOCONS WANT A
BIG TENT THAT INCLUDES VOICES THAT WILL BE MORE CREATIVE AND AGGRESSIVE IN
DEFENDING US INTERESTS THAN WILL MOST OF THESE OLD DEMOCRATS

WHICH BRINGS UP RON BROWN AGAIN EVERY PRESIDENT NEEDS OLD WASHINGTON HANDS
TO SUCCEED MR CLINTON HAS APPOINTED SOME WHO OFFER THE HOPE OF WISDOM LES
ASPIN AT DEFENSE LLOYD BENTSEN AT TREASURY BUT MR BROWN IS MR CLINTON'S
WORST APPOINTMENT BECAUSE HE SYMBOLIZES AN EMBRACE OF THE WORST OF
WASHINGTON'S DEMOCRATIC ESTABLISHMENT ITS PERMANENT BROKERING CLASS

THE CONSTITUTION PROTECTS THE RIGHT TO PETITION GOVERNMENT BUT THE RON
BROWNS OF WASHINGTON MAKE THEMSELVES INDISPENSABLE BY CREATING EVER MORE
GOVERNMENT THEY CREATE THE DEMAND FOR GUIDANCE THROUGH GOVERNMENT THAT THEY
THEN OFFER TO FILL FOR A FEE

SUCH POLITICAL BROKERING IS THE ONLY KIND OF COMMERCE MR BROWN HAS EVER
KNOWN HIS CAREER PATH HAS TRAVERSED THE SMALL WORLD FROM SENATE STAFFER TO
LAWYERLOBBYIST TO CHAIRMAN OF THE DEMOCRATIC NATIONAL COMMITTEE DNC AND
NOW TO THE CABINET IS THIS THE SORT OF EXPERIENCE MR CLINTON THINKS IS
ESSENTIAL FOR A DEPARTMENT THAT HE HOPES WILL REVITALIZE US INDUSTRY IF
SO THE JAPANESE CAN RELAX

THE CASE OF CHEMFIX TECHNOLOGIES SHOWS THE TROUBLE EVEN THE APPEARANCE OF
POLITICAL BROKERAGE CAN BRING CHEMFIX IS A LOUISIANA SLUDGETREATMENT
COMPANY IN WHICH MR BROWN OWNS SHARES AND WAS A DIRECTOR OF UNTIL LAST
YEAR IN 1990 A CHEMFIX UNIT WON A TENTATIVE 210 MILLION CONTRACT FROM
NEW YORK CITY A FEW WEEKS LATER NEW YORK WAS NAMED THE 1992 DEMOCRATIC
CONVENTION SITE

MR BROWN CLAIMS HE NEVER SPOKE TO ANYONE IN NEW YORK ABOUT THE CONTRACT
AND I BELIEVE HIM BUT POLITICAL INFLUENCE IS RARELY THAT CRASS THANKS TO
DIGGING BY NEWSDAY REPORTERS JOE CALDERONE AND KEVIN FLYNN WE KNOW THAT MR
BROWN'S LAW FIRM PATTON BOGGS & BLOW REPRESENTED CHEMFIX IN TALKS WITH
THE CITY THAT LOS ANGELES MAYOR TOM BRADLEY A FRIEND OF MR BROWN'S SENT
NEW YORK MAYOR DAVID DINKINS A LETTER ON BEHALF OF CHEMFIX AND THAT HAROLD
ICKES A NEW YORK LABOR LAWYER AND CAMPAIGN COUNSEL TO MR DINKINS LOBBIED
FOR CHEMFIX

MR ICKES LATER RAN THE NEW YORK CONVENTION FOR MR BROWN AND HE'S NOW
RUMORED TO BECOME DEPUTY CHIEF OF STAFF IN THE CLINTON WHITE HOUSE CHEMFIX
DROPPED OUT OF THE BIDDING AFTER NEWSDAY BROKE THE STORY AND PUBLIC
OPPOSITION BUILT

REPUBLICANS WERE TOO UNPREPARED AND TIMID THIS WEEK TO SQUAWK ABOUT ANY OF
THIS WHILE SENATE DEMOCRATS DISPLAYED A TOLERANCE FOR SUCH FACTS THAT WOULD
HAVE ASTONISHED JOHN TOWER IT'S POSSIBLE THIS SHOWS A NEW SENSE OF
RESPONSIBILITY MORE LIKELY IT REVEALS AN EAGERNESS AMONG SENATORS TO USE A
BROWN COMMERCE DEPARTMENT AS ONE MORE PLACE TO BROKER FOR THEIR POLITICAL
CLIENTS SENS ERNEST HOLLINGS AND JAY ROCKEFELLER ALL BUT BEGGED MR BROWN
TO USE THE TRADE LAWS MORE OFTEN TO FIGHT FOR US INDUSTRY

IT'S NOT SURPRISING THAT MR CLINTON SHOULD DRAW ON WASHINGTON'S POLITICAL
CULTURE AND TO SOME EXTENT HE MUST BUT HE MAY WANT TO BE CAREFUL LEST THE
VOTERS WHO WANTED CHANGE BEGIN TO CONCLUDE THAT ONE MORE FIX OR PERHAPS
SOME FUTURE CHEMFIX IS IN 9301080071 930108 BUSINESS BRIEF 
SAFEGUARD SCIENTIFICS INC FIRM REGISTERS PLAN TO TAKE CAMBRIDGE
AFFILIATE PUBLIC

SAFEGUARD SCIENTIFICS INC SAID IT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION ITS PLAN TO TAKE CAMBRIDGE TECHNOLOGY PARTNERS INC PUBLIC BY
MAKING A RIGHTS OFFERING FOR THREE MILLION COMMON SHARES OF THE CONSULTING
AND SOFTWARE DEVELOPMENT CONCERN

SAFEGUARD OF WAYNE PA HELD JUST UNDER 50 OF CAMBRIDGE TECHNOLOGY AS OF
DEC 17 SAFEGUARD RUNS TWO VENTURECAPITAL FUNDS AND INVESTS IN TECHNOLOGY
FIRMS AMONG OTHER INTERESTS

RADNOR VENTURE PARTNERS LIMITED PARTNERSHIP AND TECHNOLOGY LEADERS ENTITIES
IN WHICH SAFEGUARD HAS BENEFICIAL INTERESTS HELD 178 AND 133
RESPECTIVELY IF THE RIGHTS ARE EXERCISED SAFEGUARD'S STAKE WILL BE REDUCED
TO ABOUT 30 RADNOR'S TO 163 AND TECHNOLOGY LEADERS' TO 122
9301080070 930108 BUSINESS BRIEF IRI SHAREHOLDERS APPROVE PLAN TO
SELL OFF SME SUBSIDIARY

A SHAREHOLDERS' MEETING OF ITALY'S STATE INDUSTRIAL HOLDING GROUP ISTITUTO
PER LA RICOSTRUZIONE INDUSTRIALE APPROVED THE ITALIAN GOVERNMENT'S PLAN FOR
PRIVATIZATION OF IRI'S FOOD SUBSIDIARY SME AN IRI DIRECTOR SAID

IRI'S BOARD HAD ALREADY APPROVED THE PLAN WHICH CALLS FOR SME TO BE DIVIDED
INTO AT LEAST THREE SECTORS COVERING FOOD DISTRIBUTION SWEETS AND ICE
CREAM PRODUCTS AND OILS AND PRESERVES

SME WHICH STANDS FOR SOCIETA MERIDIONALE FINANZIARIA IS QUOTED ON THE
MILAN EXCHANGE SPINOFF COMPANIES WOULD ALSO BE QUOTED WITH A SHARE SWAP
PLAN EXPECTED FOR HOLDERS OF EXISTING SME SHARES 9301080069 930108
TECHNOLOGY IBM SETS SAIL FOR NEW ELECTRONICS WORLD  COMPUTER GIANT
IS SEEKING TO PLAY A MAJOR ROLE IN ENTERTAINMENT FIELD  BY
LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL

SPEAKING IN THE UNACCUSTOMED FORUM OF THE CONSUMER ELECTRONICS SHOW
INTERNATIONAL BUSINESS MACHINES CORP'S PRESIDENT STAKED HIS COMPANY'S CLAIM
IN THE EMERGING INDUSTRY COMBINING COMPUTERS ENTERTAINMENT AND CONSUMER
ELECTRONICS

TO BACK UP HIS AMBITIOUS VISION JACK KUEHLER ALSO UNVEILED A GRAB BAG OF
COOPERATIVE PROJECTS BETWEEN IBM AND CONSUMERORIENTED COMPANIES SUCH AS
BLOCKBUSTER ENTERTAINMENT CORP POLAROID CORP BELL ATLANTIC CORP AND
JAPAN'S SEIKO CORP

BUT WHILE ELEMENTS OF MR KUEHLER'S PITCH WERE ENTICING THE BLOCKBUSTER
PROJECT FOR EXAMPLE IMAGINES MUSIC STORES THAT CAN MAKE ANY COMPACT DISK
ON DEMAND IBM FACES ENORMOUS HURDLES BEFORE IT CAN TRANSFORM ITSELF FROM
A STUMBLING COMPUTER GIANT INTO A KEY TECHNOLOGY PROVIDER FOR THE
ENTERTAINMENT INDUSTRY ANALYSTS HAVE SAID

IN A STANDINGROOMONLY SPEECH THAT OPENED THE SHOW IN LAS VEGAS MR
KUEHLER AGREED WITH PUNDITS WHO SAY THE DIGITIZATION OF MUSIC VIDEO AND
OTHER INFORMATION ITS TRANSLATION INTO ELECTRONIC PULSES THAT COMPUTERS
CAN UNDERSTAND AND MANIPULATE IS SPEEDING A MERGER BETWEEN THE COMPUTER
INDUSTRY AND CONSUMER ELECTRONICS

THAT COMBINATION HE TOLD A RAPT AUDIENCE IN THE LAS VEGAS HILTON'S
BALLROOM WILL UNLEASH VAST NEW OPPORTUNITIES TECHNOLOGY HAS ALLOWED OUR
TWO STREAMS TO FORM A VERY POWERFUL RIVER HE SAID CUSTOMER DEMAND IS
INSATIABLE

WITHIN THIS FRAMEWORK MR KUEHLER SAID IBM CAN PROVIDE MUCH OF THE BASIC
TECHNOLOGY THAT WILL BE NEEDED TO DELIVER INFORMATION TO ALL MANNER OF NEW
DEVICES HANDHELD PERSONAL COMMUNICATORS COMPUTERS THAT DISPLAY VIDEO
IMAGES INTERACTIVE TELEVISION SYSTEMS EVEN SEATBACK COMPUTERS ON
AIRPLANES

IN ESSENCE THE SPEECH AMOUNTED TO A LAUNDRY LIST OF IBM'S MOST PROMISING
CONSUMER TECHNOLOGIES IT ALSO INCLUDED AN UNUSUALLY HUMBLE PLEA FOR
PARTNERS TO TURN THIS KNOWHOW INTO WINNING PRODUCTS

NO COMPANY IS BETTER PREPARED AND MORE WILLING TO HELP BRING THESE NEW
PRODUCTS TO REALITY THAN IBM HE SAID THERE'S NO SPECIAL INVITATION LIST
SO IF YOU HAVE A NEW IDEA IF YOU NEED HELP TO BRING THAT IDEA FORWARD WE
CAN DO IT

IBM IS STRUGGLING TO DEFINE A NEW DIRECTION AS IT MOVES AWAY FROM ITS FORMER
CORE BUSINESS OF SELLING BIG MAINFRAME COMPUTERS TO CORPORATE CUSTOMERS
DESPITE ENORMOUS CUTBACKS THE COMPANY'S WOES HAVE DEEPENED LATELY AS SALES
FALTER AND ITS STOCK PLUMBS NEW 17YEAR LOWS

IN A TELEPHONE INTERVIEW AFTER HIS SPEECH MR KUEHLER SAID IBM ISN'T
PLACING ALL ITS BETS ON BECOMING A PLAYER IN CONSUMER ELECTRONICS ALTHOUGH
THE AREA IS ONE OF A NUMBER OF GROWTH OPPORTUNITIES THAT WE'RE PURSUING

HE CONCEDED THAT IBM HAS CRITICS WHO THINK THE COMPANY BASED IN ARMONK
NY IS TOO UNWIELDY AND CORPORATEMINDED TO BE A SUCCESS IN THE CONSUMER
ARENA WHERE IT HAS FAILED BEFORE WITH DUDS SUCH AS THE PC JR HOME
COMPUTER BUT HE BOASTED THAT AFTER MY KEYNOTE THERE ARE FEWER PEOPLE
WHO'D SAY THAT

MR KUEHLER AND OTHER IBM EXECUTIVES ALSO GAVE FURTHER DETAILS ON SOME OF
THE PROJECTS HIGHLIGHTED IN HIS SPEECH FOR EXAMPLE THEY SAID IBM AND
BLOCKBUSTER HAVE DISCOVERED THAT IT'S A RELATIVELY SMALL CHALLENGE TO DESIGN
SELFSERVE KIOSKS FOR MUSIC STORES WHICH COULD SELL WHATEVER RECORDINGS A
CUSTOMER WANTS BY ZAPPING THEM IN FROM A CENTRALIZED DATABASE

ABOUT 43 OF SHOPPERS WHO ENTER A STORE IN SEARCH OF A SPECIFIC RECORDING
ARE DISAPPOINTED MR KUEHLER SAID RESULTING IN AT LEAST 1 BILLION A YEAR
IN LOST SALES

THE IDEA IS SIMILAR TO SOME MACHINES ALREADY IN OPERATION WHICH ALLOW
CUSTOMERS TO MIXANDMATCH A NUMBER OF SONGS BY DIFFERENT ARTISTS ONTO A
SINGLE CASSETTE BLOCKBUSTER THE VIDEORENTAL CHAIN BASED IN FORT
LAUDERDALE FLA IS MOVING QUICKLY INTO MUSIC SALES AND PLANS TO OPEN A
NUMBER OF US MEGASTORES THAT ALSO SELL COMPUTER SOFTWARE VIDEO GAMES
AND OTHER ITEMS

MR KUEHLER SAID IBM KIOSKS COULD ALSO DISPENSE SOFTWARE AND VIDEO
GAMESEVEN MOVIES HE NOTED THAT IBM HASN'T COMMITTED TO ANY FORMAL
PARTNERSHIP WITH BLOCKBUSTER HOWEVER

IBM'S PROJECT WITH POLAROID IS MORE CONCRETE AND WILL RESULT IN A DIGITAL
CAMERA THAT WILL BE AVAILABLE FOR SALE IN ABOUT A YEAR ACCORDING TO PAUL
MUGGE A TOP IBM TECHNOLOGIST DIGITAL CAMERAS WHICH CAPTURE IMAGES AS
COMPUTER DATA RATHER THAN CHEMICAL CHANGES ON FILM ARE SLOWLY CATCHING
ONPARTICULARLY IN THE DESIGN COMMUNITY WHICH LOVES TO USE PCS TO FOOL
AROUND WITH THE DIGITIZED PICTURES THEY PRODUCE

INSTEAD OF STORING IMAGES IN THE CAMERA AS MOST CURRENT DIGITAL CAMERAS DO
THE NEW IBMPOLAROID DEVICE WOULD LINK TO A PC WITH A CREDITCARD SIZED
ADAPTOR AND STORE PICTURES DIRECTLY ON THE PC'S DISK DRIVE IT WILL COST IN
THE HUNDREDS OF DOLLARS MR MUGGE SAID

IBM IS COOPERATING WITH SEIKO ON A PROJECT IN THE PACIFIC NORTHWEST WHERE
SEIKO IS TESTMARKETING WATCHES THAT ACT AS PAGERS BY RECEIVING MESSAGES
OVER FMRADIO FREQUENCIES THE WATCHES ALSO GET RADIO SIGNALS THAT ENSURE
THEIR TIMEKEEPING ACCURACY AND AUTOMATICALLY ADJUST THEMSELVES WHEN THEY
MOVE TIME ZONES

MR KUEHLER ALSO SAID IBM WILL PROVIDE SOME OF THE CORE TECHNOLOGY FOR BELL
ATLANTIC'S TEST THIS SUMMER OF A VIDEOONDEMAND SYSTEM WHICH WOULD
TRANSMIT MOVIES TO HOMES OVER TELEPHONE WIRES 9301080068 930108
COMMODITIES WORLD OIL PRICES FELL AMID MODERATE ACTIVITY AS TRADERS
TRACKED NEWS ON IRAQ US TENSIONS  BY CALEB SOLOMON STAFF
REPORTER OF THE WALL STREET JOURNAL

HOUSTON WORLD OIL PRICES FELL IN MODERATE TECHNICALLY ORIENTED ACTIVITY
AS TRADERS WATCHED THEIR COMPUTER SCREENS AND TELEVISIONS FOR ANY NEWS ON
THE TENSIONS BETWEEN THE US AND IRAQ

BUT MARKET FUNDAMENTALS PLAYED A GREATER ROLE AS PETROLEUM PRODUCT PRICES
PULLED DOWN CRUDE MARKET PARTICIPANTS SAID THE RECENT BUILDUP IN GASOLINE
AND HEATINGOIL INVENTORIES HURT PRICES

IRAQ APPEARS TO HAVE HAD NO EFFECT AT ALL AT LEAST IN SHORTTERM PRICE
EXPECTATIONS SAID ROBERT BOSLEGO PRESIDENT OF BOSLEGO CORP THESE
WEEKTOWEEK INVENTORY CHANGES HAVE BEEN MORE IMPORTANT TO THE MARKET

ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT BLENDS OF CRUDE OIL FELL
BY 11 CENTS TO 17 CENTS A BARREL WITH MOST OF THE DROP COMING IN LATE
TRADING PRICES SLUMPED WHEN THE LIGHT SWEET CRUDE CONTRACT ON THE NEW YORK
MERCANTILE EXCHANGE FELL BELOW 19 A BARREL CONTRACTS FOR FEBRUARY DELIVERY
ON THE NEW YORK MERC SETTLED AT 1895 A BARREL DOWN NINE CENTS

IN THE NEWS TRADERS WERE AWAITING IRAQ'S RESPONSE TO THE US ULTIMATUM TO
REMOVE ITS ANTIAIRCRAFT MISSILES FROM SOUTHERN IRAQ WHICH IS PATROLLED BY
US PLANES AND BARRED TO IRAQI AIRCRAFT BY MIDDAY OF TRADING IN NEW YORK
A SENIOR PENTAGON OFFICIAL SAID THAT IRAQ WAS MOVING THE MISSILES AFTER
TRADING CLOSED ON THE NEW YORK MERC US OFFICIALS SAID THAT IRAQ ONLY
MOVED ITS MISSILES TO ANOTHER POSITION IN THE SOCALLED NOFLY ZONE

IN THE NEAR TERM MILITARY HOSTILITIES IN IRAQ SHOULD HAVE LITTLE IMPACT ON
CRUDE PRICES BECAUSE IRAQ IS BARRED FROM SELLING OIL UNLESS PHYSICAL
SUPPLIES ARE AFFECTED THE IRAQ TENSIONS ONLY AFFECT LONGERRUN
EXPECTATIONS MR BOSLEGO SAID

BEFORE THIS FLAREUP SOME MARKET PLAYERS BELIEVED THAT IRAQ WOULD REACH AN
ACCORD WITH THE UNITED NATIONS SOMETIME THIS YEAR TO SELL OIL AGAIN THAT
EXPECTATION OF A POTENTIAL FLOOD OF OIL INTO AN ALREADY OVERSUPPLIED MARKET
HAS KEPT A LID ON FUTURES CONTRACTS FOR 1993 NOW THOSE EXPECTATIONS HAVE TO
CHANGE

GASOLINE FOR FEBRUARY DELIVERY SETTLED AT 5354 CENTS A GALLON DOWN 094
CENT ON THE NEW YORK MERC FEBRUARY HEATING OIL FINISHED AT 5356 CENTS
DOWN 073 CENT

IN OTHER COMMODITY MARKETS YESTERDAY

GRAINS & SOYBEANS PRICES OF WHEAT AND SOYBEAN FUTURES CONTRACTS ROSE AMID
CONTINUING SPECULATION THAT CHINA IS INTERESTED IN IMPORTING SIGNIFICANT
AMOUNTS OF THE TWO CROPS IN TRADING AT THE CHICAGO BOARD OF TRADE THE
SOYBEAN CONTRACT FOR JANUARY DELIVERY ROSE 525 CENTS A BUSHEL TO SETTLE AT
57625 A BUSHEL CHINA'S INTEREST IN IMPORTING SOYBEANS IS ATTRACTING
ATTENTION BECAUSE IT SIGNALS THAT CHINA MIGHT BE LOSING ITS STATUS AS A
SELFSUFFICIENT PRODUCER CHINA WAS FORCED TO IMPORT SOME SOYBEANS LAST YEAR
IN PART BECAUSE DEMAND FROM ITS SWELLING LIVESTOCK INDUSTRY IS OUTSTRIPPING
ITS DOMESTIC CROP PRODUCTION US TRADERS ARE SPECULATING THAT CHINA MIGHT
IMPORT ROUGHLY 300000 METRIC TONS OF SOYBEANS FROM FOREIGN SOURCES SUCH AS
BRAZIL AND ARGENTINA CHINA PRODUCES ABOUT 10 MILLION METRIC TONS OF
SOYBEANS ANNUALLY COMPARED WITH THE 59 MILLION METRICTON CROP RECENTLY
HARVESTED IN THE UNITED STATES WHEAT PRICES WERE ALSO SUPPORTED BY
CONTINUING SPECULATION THAT CHINA IS INTERESTED IN BUYING UP TO TWO MILLION
METRIC TONS OF SUBSIDIZED US WHEAT

ORANGE JUICE FUTURES PRICES PLUNGED ON GROWING INDICATIONS OF OVERSUPPLY OF
ORANGE JUICE IN BOTH FLORIDA AND BRAZIL THE MARCH CONTRACT WAS 280 CENTS
LOWER TO SETTLE AT 8220 CENTS A POUND ORANGE CROPS IN BOTH HEMISPHERES
HAVE EXPERIENCED OPTIMAL GROWING CONDITIONS LEADING TO EXTREMELY LOW
FUTURES PRICES SOME ANALYSTS COMPARE THIS YEAR'S CROP TO THE WINTER 198081
CROP WHEN OVERSUPPLY PUSHED PRICES DOWN TO 78 CENTS A POUND THAT'S THE
LEVEL WHERE WE SHOULD FIND SUPPORT FOR PRICES SAID BERNARD SAVAIKO
ANALYST FOR PAINEWEBBER INC HE CAUTIONED HOWEVER THAT AT THESE LOW PRICE
LEVELS A MAJOR SURGE IN JUICE PRICES REMAINS POSSIBLE WE'RE STILL IN THE
PEAK OF THE FREEZE SEASON AND ALTHOUGH THERE'S NO FREEZE IN SIGHT ANYONE
WHO GAMBLES AGAINST THE FREEZE DOES SO AT THEIR OWN PERIL MR SAVAIKO
SAYS FREEZES CAN TYPICALLY ADD 20 TO 30 CENTS TO FUTURES PRICES

COTTON COTTON FUTURES PRICES BUOYED BY STRONG INTEREST FROM COMMODITY
FUNDS SURGED HIGHER COTTON FOR MARCH DELIVERY GAINED 154 CENTS TO CLOSE
AT 6108 A POUND ANALYSTS SAID TRADING VOLUME AT THE NEW YORK COTTON
EXCHANGE WAS MORE THAN DOUBLE THE AVERAGE DAILY VOLUME COMMODITY FUNDS
WHICH MANAGE MONEY FOR INVESTORS TYPICALLY INVEST ON THE BASIS OF
TECHNICAL FACTORS OR MATHEMATICAL FORMULAS RELATING TO TRENDS IN PRICE
MOVEMENTS RATHER THAN FUNDAMENTAL FACTORS AFFECTING SUPPLY AND DEMAND
THIS WAS A SIGNIFICANT MOVE TO THE UPSIDE SAID SCOTT MEYERS SENIOR
TECHNICAL ANALYST WITH REDELSILGO GROUP IN NEW YORK HE SAID THAT WITH
YESTERDAY'S BREACH OF THE 60 CENTSAPOUND RESISTANCE LEVEL THE DOOR WAS
OPEN TO FURTHER RISES ON TECHNICAL GROUNDS SANDRA KAUL A COMMODITY ANALYST
WITH SHEARSON LEHMAN BROTHERS SAID COTTON PRICES ARE ALSO BEING SUPPORTED
BY BULLISH FUNDAMENTAL FACTORS WE'VE SEEN A STRONG PICKUP IN DEMAND FOR
COTTON AS MILLS HAVE BEEN RUNNING AT THEIR MOST RAPID PACE SINCE 1966 SHE
SAID NOTING THAT INVENTORIES ARE UNUSUALLY LOW 9301080067 930108
BUSINESS BRIEF HIBBARD BROWN & CO MASSACHUSETTS IS SEEKING TO
REVOKE FIRM'S LICENSE

MASSACHUSETTS IS SEEKING TO REVOKE THE LICENSE OF HIBBARD BROWN & CO A NEW
YORK PENNYSTOCK FIRM WITH OFFICES IN THE STATE CHARGING THE FIRM WITH
FRAUDULENTLY SELLING STOCKS

THE STATE ALLEGES THAT HIBBARD RAN A BOILER ROOM OPERATION FROM OFFICES IN
WAKEFIELD MASS THAT SOLD 8 MILLION IN OVERPRICED SMALLCOMPANY
SECURITIES TO 2600 MASSACHUSETTS RESIDENTS HIBBARD WHICH IS THE SUBJECT
OF INVESTIGATIONS OR CIVIL COMPLAINTS BY REGULATORS IN SEVERAL STATES
DENIED THE CHARGES

THIS FIRM DID NOTHING WRONG SAID MICHAEL UNGER HIBBARD'S ATTORNEY

THE CHARGES AGAINST HIBBARD FILED BY MASSACHUSETTS WILL RESULT IN
ADMINISTRATIVE HEARINGS OVER THE NEXT FEW MONTHS STATE OFFICIALS SAID
ALONG WITH REVOCATION OF HIBBARD'S LICENSE THE STATE WILL CALL FOR
DISGORGEMENT OF FUNDS IT SAYS WERE WRONGFULLY OBTAINED AND RESTITUTION TO
THOSE ALLEGEDLY VICTIMIZED 9301080066 930108 SALES DROP HITS WESTERN
EUROPE AUTO MARKET  BY ROBERT L SIMISON STAFF REPORTER OF THE
WALL STREET JOURNAL

BRUSSELS THE WESTERN EUROPEAN AUTO MARKET APPEARS LIKELY TO DECLINE ABOUT
13 TO AROUND 1325 MILLION UNITS FOR ALL OF 1992 INDUSTRY EXPERTS SAID

THE PROJECTED SLOWING WOULD BE OF CONSIDERABLY SMALLER MAGNITUDE THAN HAD
BEEN EXPECTED ENTERING 1992 BUT NOW THE INDUSTRY IS BRACING FOR A SHARPER
DROP IN SALES DURING 1993 AS RECESSION CONTINUES IN GERMANY AND ELSEWHERE
THE ECONOMIST INTELLIGENCE UNIT RECENTLY PUT 1993 SALES AT 129 MILLION
UNITS DOWN ABOUT 3 FROM 1992'S EXPECTED TOTAL OTHERS ARE MORE
PESSIMISTIC FORECASTING DECLINES OF 5 TO 7 ACCORDING TO SOUNDINGS BY VIC
HEYLEN MANAGING DIRECTOR OF ANALYSE AUTO AN ANTWERP CONSULTING CONCERN

NONETHELESS STANDARD & POOR'S CORP THE CREDIT RATING AGENCY THIS WEEK
PUBLISHED AN ANALYSIS DECLARING EUROPE'S LEADING AUTO MAKERS IN SOUND SHAPE
TO WEATHER THE DOWNTURN THE AGENCY AFFIRMED THE TOP OR NEARTOP CREDIT
RATINGS OF VOLKSWAGEN AG FIAT SPA PEUGEOT SA RENAULT BAYERISCHE MOTOREN
WERKE AG DAIMLERBENZ AG AND AB VOLVO

BELGIUM AND BRITAIN PROVIDED AN EARLY LOOK AT FULLYEAR CAR SALES THE
BELGIAN AUTO MANUFACTURERS' ASSOCIATION SAID NEWCAR REGISTRATIONS FOR 1992
ROSE 09 TO 466195 UNITS FROM 462125 FOR 1991 AND BRITAIN'S SOCIETY OF
MOTOR MANUFACTURERS AND TRADERS SAID 1992 NEWCAR SALES INCHED UP TO
1594000 CARS FROM THE YEAREARLIER 1592000 WHICH WAS A 10YEAR LOW

THE GROUP ATTRIBUTED THE RISE TO AN UNEXPECTED SALES SURGE DURING THE FINAL
10 DAYS OF THE YEAR WHICH PUSHED DECEMBER SALES UP 37 TO 79903 UNITS FROM
THE YEAREARLIER 58274 AUTO MAKERS CAUTIONED AGAINST READING TOO MUCH INTO
THE LATEDECEMBER RISE IN REGISTRATIONS CITING SPECIAL FACTORS

NONETHELESS HAL MILLER CHIEF EXECUTIVE OFFICER OF THE INDUSTRY GROUP SAID
THE RESULTS REINFORCE OUR BELIEF THAT THE HOME MARKET IS ON ITS WAY TO
RECOVERY AND WE ARE CONFIDENT THAT THIS WILL CONTINUE ON A MORE MODEST
SCALE THROUGHOUT 1993 THE FACT THAT WE MANAGED TO PASS THE PREVIOUS YEAR'S
TOTAL IS A CONSIDERABLE MORALE BOOSTER FOR THE INDUSTRY THE BRITISH CAR
MARKET HAS BEEN ONE OF THE WORLD'S MOST DEPRESSED

IN NOVEMBER THE MOST RECENT MONTH FOR WHICH COMPLETE RESULTS ARE AVAILABLE
WESTERN EUROPEAN CAR SALES ROSE 08 TO 965732 UNITS ACCORDING TO ANALYSE
AUTO THE ANTWERP CONSULTING FIRM THE FIGURES REFLECT ESTIMATED AND
OFFICIALLY REPORTED NEWCAR REGISTRATIONS FOR 17 WEST EUROPEAN COUNTRIES
AMONG LEADING MARKETS IN NOVEMBER GERMAN SALES WERE UP 47 FRENCH SALES
78 AND BRITISH SALES 63 ITALIAN REGISTRATIONS DECLINED 117

THAT BROUGHT THE 11MONTH TOTAL TO 12479707 REGISTRATIONS DOWN 13 FROM
THE YEAREARLIER 12644553 MILLION VW AIDED BY ITS POPULAR NEW GOLF AND
AUDI 80 MODELS HAS SOLIDIFIED ITS GRASP ON MARKET LEADERSHIP SEIZING 171
OF SALES THROUGH NOVEMBER GENERAL MOTORS CORP'S EUROPEAN UNIT HELD 123
FOR NO 2 AND PEUGEOT WAS NO 3 WITH 121 FIAT AND FORD MOTOR CO'S
EUROPEAN OPERATIONS HAVE BEEN THE BIGGEST LOSERS FALLING TO NOS 4 AND 5
RESPECTIVELY

IN ITS REVIEW OF THE INDUSTRY S&P SAID THAT DESPITE THE OUTLOOK FOR MORE
SLOWING IN THE CAR MARKET EUROPE'S AUTO MAKERS ARE STILL IN REASONABLE
FINANCIAL SHAPE TO FACE A WEAKENING INDUSTRY CLIMATE

IT OBSERVED THAT WITH A REBOUND ALREADY EXPECTED FOR 1994 ITS FAVORABLE
CREDIT RATINGS FOR THE SEVEN MANUFACTURERS ALSO CONSIDER THE POTENTIAL FOR
IMPROVEMENT IN THE INDUSTRY'S FINANCIAL PERFORMANCE OVER THE NEAR TERM

HELPING THE EUROPEAN AUTO MAKERS ESPECIALLY IN COMPARISON WITH THE US
AUTO INDUSTRY S&P OBSERVED IS THAT OVER THE MEDIUM TERM THERE WILL BE
STRONG GROWTH FROM THE ECONOMICALLY STRONGER EAST EUROPEAN COUNTRIES AND
IT FORECAST REAL VOLUME GROWTH IN WESTERN EUROPE

ON THE OTHER HAND THE AGENCY POINTED OUT THAT A PLANTBUILDING SPREE
INVOLVING NOT ONLY THE JAPANESE AUTO MAKERS BUT ALSO VW GM FIAT AND
MERCEDESBENZ HAS CREATED EXCESS CAPACITY THAT WILL POSE A LINGERING
PROBLEM DESPITE EFFORTS TO CUT COSTS AND IMPROVE EFFICIENCY S&P SAID
THERE IS BROAD ACCEPTANCE THAT THE RECORD PROFIT LEVELS OF THE LATE 1980S
WON'T RECUR IN THE 1990S 9301080065 930108 TIME WARNER SEEKS 1
BILLION TO EASE DEBT  BY JOHNNIE L ROBERTS STAFF REPORTER OF
THE WALL STREET JOURNAL

NEW YORK TIME WARNER INC IS RAISING 1 BILLION THROUGH A DEBENTURE OFFER
AND PLANS TO USE THE PROCEEDS TO REDEEM OR REPURCHASE PART OF AN EXPENSIVE
SERIES OF PREFERRED STOCK ISSUES

THE MOVE CONTINUES THE ENTERTAINMENT AND PUBLISHING GIANT'S DRIVE TO
RESTRUCTURE THE DEBT INCURRED IN THE 14 BILLION 1989 PURCHASE OF WARNER
COMMUNICATIONS INC BY TIME INC ACCORDING TO SECURITIES ANALYSTS'
ESTIMATES THE REFINANCING IS LIKELY TO YIELD AN ANNUAL TAX BENEFIT AND
INTEREST SAVINGS OF MORE THAN 50 MILLION FOR TIME WARNER MOREOVER IT
INDICATES THAT THE COMPANY PROBABLY WILL FULLY REDEEM OR REPURCHASE THE TWO
PREFERRED STOCK ISSUES SERIES C AND SERIES D WHICH ARE VALUED AT 65
BILLION DURING THE NEXT TWO YEARS ANALYSTS SAID

IF THE ISSUES WERE FULLY REDEEMED IT COULD SUBSTANTIALLY IMPROVE TIME
WARNER'S FINANCIAL PERFORMANCE BY GENERATING TAX AND INTEREST SAVINGS OF
ALMOST 300 MILLION ANNUALLY A SAVINGS THAT WOULD PROPEL THE COMPANY TO ITS
FIRSTEVER PROFITS ANALYSTS SAID

TIME WARNER WILL HAVE A GREAT YEAR FINANCIALLY EVEN IF ITS OPERATIONS
DON'T DELIVER ROBUST PERFORMANCES SAID ANALYST LISBETH BARRON OF SG
WARBURG & CO

THE COMPANY SAID IT WILL OFFER 9125 SENIOR DEBENTURES DUE 2013 WHILE TIME
WARNER DIDN'T SAY WHICH OF THE TWO PREFERRED ISSUES IT WOULD REDEEM OR
REPURCHASE ANALYST SPECULATED THAT THE MOST LIKELY IS THE PAYINKIND
SERIES D WHICH BOASTS AN 11 INTEREST RATE RATHER THAN THE 875 SERIES C
WHICH PAYS A CASH DIVIDEND TIME WARNER WOULD HAVE POSTED PROFITS IN THE
PAST SEVERAL QUARTERS WERE IT NOT FOR PAYMENTS TO HOLDERS OF BOTH PREFERRED
ISSUES

REPLACING 1 BILLION OF EITHER ISSUE WITH THE DEBENTURE HOWEVER WOULD
GENERATE A BIG TAX BENEFIT FOR TIME WARNER BECAUSE INTEREST PAID ON THE
DEBENTURES ARE DEDUCTIBLE WHILE THE PREFERRED DIVIDENDS AREN'T TIME WARNER
ALSO STANDS TO SAVE CASH BECAUSE THE DEBENTURES BOAST A LOWER INTEREST RATE

THIS MOVE WILL ACCELERATE THE SCHEDULE OF BRINGING TIME WARNER BACK TO AN
EARNINGSPERSHARE STORY FROM A CASHFLOW STORY SAID ANALYST EDWARD HATCH
OF UBS SECURITIES INC

SINCE COMPLETING THE 1989 TRANSACTION TIME WARNER HAS WHITTLED ITS DEBT TO
92 BILLION THROUGH A VARIETY OF MOVES INCLUDING A STOCK OFFERING THE
COMPANY ALSO RAISED 1 BILLION BY SELLING A 125 INTEREST IN SOME OF ITS
ENTERTAINMENT BUSINESSES TO JAPAN'S TOSHIBA CORP AND C ITOH & CO

MEANWHILE TIME WARNER'S STOCK WHICH TRADED IN THE MID 20S LAST FALL HAS
GRADUALLY IMPROVED REACHING A NEW HIGH WEDNESDAY OF 2975 CENTS A SHARE
IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TIME WARNER
TRADED AT 2950 OFF 25 CENTS 9301080064 930108 FOREIGN EXCHANGE 
GERMANY TRIMS ONE INTEREST RATE IN BID TO BOLSTER EUROPEAN MONETARY SYSTEM
  BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL

LONDON GERMANY'S CENTRAL BANK TOSSED EUROPE'S BELEAGUERED MONETARY SYSTEM
A BONE BY CUTTING ONE OF ITS INTEREST RATES BUT ANALYSTS DOUBTED THE MOVE
WOULD CALM THE FOREIGNEXCHANGE MARKET FOR LONG

THE FRENCH FRANC WHICH HAS BEEN UNDER HEAVY PRESSURE DURING THE PAST SIX
WEEKS GAINED AGAINST THE MARK AFTER THE MOVE WAS ANNOUNCED THE MARK
FINISHED THE EUROPEAN DAY AROUND 33990 FRANCS DOWN FROM 34045 FRANCS
WEDNESDAY

NEVERTHELESS FAULT LINES IN THE EUROPEAN MONETARY SYSTEM WERE CLEARLY
EVIDENT THE IRISH PUNT WHICH HAS BEEN THE WEAKEST MEMBER OF THE EXCHANGE
RATE MECHANISM SINCE NOVEMBER FACED CONTINUED SELLING AND THE IRISH
AUTHORITIES WERE FORCED LATE IN THE DAY TO DOUBLE OVERNIGHT INTEREST RATES
TO 100 TO DEFEND THE CURRENCY

THE MOVE MADE LITTLE IMPACT AS THE PUNT ENDED THE DAY AT OR NEAR ITS
PERMITTED MINIMUMS IN THE ERM VERSUS THE MARK DUTCH GUILDER AND BELGIAN
FRANC

THAT KIND OF RATE INCREASE IS SYMPTOMATIC OF THE DEATH THROES OF A
CURRENCY SAID MIKE GALLAGHER A DIRECTOR OF A LONDONBASED MARKETRESEARCH
FIRM THE PUNT HASN'T BEEN ABLE TO LIFT ITSELF UP DESPITE THESE HIGH RATES
AND DESPITE INTERVENTION FROM CENTRAL BANKS

GERMANY'S CENTRAL BANK ANNOUNCED AFTER A REGULAR POLICY MEETING THAT IT
WOULD KEEP ITS DISCOUNT AND LOMBARD RATES UNCHANGED BUT WOULD ALLOCATE ITS
NEXT ROUND OF 14DAY SECURITIES REPURCHASE AGREEMENTS AT 860 DOWN FROM
875 AT THE PREVIOUS ALLOCATION

OTHER EUROPEAN CENTRAL BANKS WITH CLOSE LINKS TO GERMANY FOLLOWED WITH
MODEST RATE CUTS THE DUTCH AND BELGIANS EACH LOWERED THEIR KEY INTEREST
RATE BY 025 PERCENTAGE POINT WHILE THE SWISS CUT THEIR DISCOUNT RATE BY
050 POINT

MARKETS WEREN'T EXPECTING ANY MOVE BY THE BUNDESBANK SO THE MODEST CUT
PROVIDED A MODICUM OF HOPE THAT THE GERMANS WOULD MAKE MORE SUBSTANTIAL RATE
CUTS IN THE NOTTOODISTANT FUTURE ANALYSTS ALSO VIEW THE BUNDESBANK'S
LATEST ACTION AS A FURTHER SIGN OF COOPERATION BETWEEN THE GERMAN AND FRENCH
GOVERNMENTS ON KEEPING THE EMS INTACT

MEANWHILE LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16370 MARKS UP FROM
16340 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT
12515 YEN UNCHANGED FROM WEDNESDAY STERLING WAS TRADING AT 15315 DOWN
FROM 15420 LATE WEDNESDAY THE POUND EASED TO 25071 MARKS FROM 25196
MARKS

ABOUT MIDDAY IN TOKYO FRIDAY THE DOLLAR WAS TRADING AT 16455 MARKS AND AT
12530 YEN THE NIKKEI STOCK INDEX CLOSED THE MORNING SESSION AT 1675509
OFF 2589 POINTS

ON TUESDAY THE BUNDESBANK AND THE BANK OF FRANCE ISSUED A JOINT COMMUNIQUE
RESTATING THEIR DETERMINATION TO DEFEND THE CURRENT FRANCMARK PARITY AND TO
COOPERATE TO ENSURE THE SMOOTH FUNCTIONING OF THE ERM THE BANK OF FRANCE
THE SAME DAY RAISED A KEY SHORTTERM INTEREST RATE TO 12 FROM 10 TO SHORE
UP ITS CURRENCY

STILL ANALYSTS SAY IT IS ONLY A MATTER OF TIME BEFORE THE FRENCH ARE FORCED
TO DEVALUE THE FRANC UNLESS THE BUNDESBANK CUTS KEY RATES BY AT LEAST ONE
PERCENTAGE POINT DURING THE NEXT SIX WEEKS

EVENTUALLY THE FRANC WILL HAVE TO GO UNDER SAID NIGEL RENDELL AN
ECONOMIST AT JAMES CAPEL & CO THE POLITICAL COST OF MAINTAINING SHORTTERM
RATES AT DOUBLE DIGITS IS JUST TOO HIGH

AS THE MARCH PARLIAMENTARY ELECTIONS IN FRANCE APPROACH MANY ANALYSTS
BELIEVE THE SOCIALIST GOVERNMENT OF PRESIDENT FRANCOIS MITTERRAND EVENTUALLY
WILL TURN AWAY FROM ITS DETERMINED SUPPORT OF A STRONG FRANC IN FAVOR OF
LOWER INTEREST RATES TO RESTART ITS SLUGGISH ECONOMY

THE LONGER THE GOVERNMENT KEEPS RATES UP THE SOONER BANKS WILL HAVE TO
PASS HIGHER RATES ON TO CORPORATE AND RETAIL CUSTOMERS AND THAT WILL REALLY
HURT MR RENDELL SAID

THE CURRENCY CRISIS ISN'T EXPECTED TO ABATE ANYTIME SOON IN PART BECAUSE
THE IRISH HAVE YET TO FORM A GOVERNMENT FOLLOWING ELECTIONS IN DECEMBER AND
THUS CANNOT MAKE A DECISION ON WHETHER TO DEVALUE THE PUNT

JOHN BEGGS CHIEF ECONOMIST AT AIB CAPITAL MARKETS IN DUBLIN THINKS THE
LIKELY COALITION OF THE FIANNA FAIL AND LABOUR PARTIES WILL MEAN A
CONTINUING COMMITMENT TO KEEPING THE PUNT STRONG

THE FUNDAMENTALS OF THE ECONOMY DON'T WARRANT ANY CHANGE IN PARITIES HE
SAID INFLATION IS LOW AND THERE IS A CONSIDERABLE TRADE SURPLUS THIS
SHOULD KEEP THE PUNT UP UNTIL THE BUNDESBANK LOWERS RATES 9301080063
930108 BUSINESS BRIEF GENERAL ELECTRIC CO COMPANY AGREES TO MARKET 
SANYO ELECTRIC CO BATTERIES

GENERAL ELECTRIC CO SAID IT SIGNED AN AGREEMENT WITH SANYO ELECTRIC CO TO
MARKET JOINTLY A WIDE RANGE OF BATTERIES MANUFACTURED BY THE JAPANESE
COMPANY

GE HAS BEEN SELLING A LIMITED RANGE OF SANYO BATTERIES UNDER ITS OWN NAME
FOR THE PAST THREE YEARS THE BATTERIES ARE MANUFACTURED BY SANYO'S US
UNIT SANYO ENERGY CORP BASED IN SAN DIEGO CALIF

UNDER THE AGREEMENT THE FULL LINE OF SANYOMADE BATTERIES NOW WILL CARRY
BOTH COMPANIES' LOGO THE TWO COMPANIES WILL SELL THEM THROUGH THEIR
RESPECTIVE SALES AND MARKETING CHANNELS FOR ITS PARTICIPATION GE WILL KEEP
A PERCENTAGE OF THE SALES A GE SPOKESMAN SAID GE IS BASED IN FAIRFIELD
CONN

THE PRODUCTS WILL INCLUDE A BROAD RANGE OF RECHARGEABLE AND ALKALINE
BATTERIES USED IN TELEPHONES RADIOCONTROLLED TOYS AND OTHER PORTABLE
ITEMS GE SAID THE US MARKET FOR THE PRODUCTS IS ESTIMATED TO BE 3
BILLION A YEAR 9301080062 930108 MARKETING & MEDIA HARVARD REVIEW 
NAMES KURTZMAN EXECUTIVE EDITOR  BY GILBERT FUCHSBERG STAFF
REPORTER OF THE WALL STREET JOURNAL

HARVARD BUSINESS REVIEW THE MANAGER'S BIBLE THAT HAS SUFFERED SOME
MANAGEMENT TURMOIL OF ITS OWN OF LATE NAMED A NEW EXECUTIVE EDITOR
APPARENTLY TO ASSUME THE RESPONSIBILITIES OF THE TOP EDITOR WHO WAS HIRED
JUST FOUR MONTHS AGO

JOEL A KURTZMAN 45 YEARS OLD A BUSINESS EDITOR AND COLUMNIST AT THE NEW
YORK TIMES WHICH IS PUBLISHED BY NEW YORK TIMES CO WILL TAKE OVER DAILY
OPERATIONS OF THE BIMONTHLY JOURNAL ON JAN 18

HIS APPOINTMENT WAS ANNOUNCED IN A STATEMENT THAT CALLED HIS TITLE A NEW
POSITION AND THAT LACKED ANY REFERENCE TO T GEORGE HARRIS A FORMER EDITOR
OF PSYCHOLOGY TODAY WHO WAS NAMED THE REVIEW'S EDITOR IN SEPTEMBER

MR HARRIS COULDN'T BE REACHED BUT IN AN INTERVIEW MR KURTZMAN SAID MY
UNDERSTANDING IS THAT GEORGE HARRIS WILL BE A CONSULTANT TO THE PUBLICATION
AND THAT HE WILL NO LONGER HAVE THE TITLE OF EDITOR MR KURTZMAN ADDED
THAT HE WILL REPORT DIRECTLY TO RUTH R MCMULLIN PRESIDENT OF A NEW HARVARD
BUSINESS SCHOOL OPERATION THAT OVERSEES THE SCHOOL'S MEDIA ENTERPRISES MS
MCMULLIN COULDN'T BE REACHED

MR HARRIS'S TENURE WHILE BRIEF HASN'T BEEN WITHOUT CONTROVERSY LAST
MONTH AS HE WAS PUTTING THE FINISHING TOUCHES ON HIS FIRST ISSUE AS EDITOR
MR HARRIS MADE A LASTMINUTE DECISION TO PULL AN ARTICLE BY A COMPUTER
INDUSTRY CONSULTANT THAT CRITICIZED THE MANAGEMENT OF INTERNATIONAL BUSINESS
MACHINES CORP THE CONSULTANT MARK STAHLMAN CHARGED THAT THE MAGAZINE WAS
UNEASY ABOUT RUNNING THE STORY TITLED WHY IBM FAILED FOR FEAR OF
ALIENATING THE COMPANY WHICH HAS BEEN A MAJOR DONOR TO THE SCHOOL AND WHICH
HAS HIRED HARVARD PROFESSORS AS CONSULTANTS AT THE TIME MR HARRIS AND
OTHER OFFICIALS DENIED THE CHARGE SAYING THAT THEY HELD THE STORY TO DO
ADDITIONAL WORK ON IT

MR HARRIS WAS HIMSELF BROUGHT IN TO QUELL AN EARLIER PERIOD OF STRIFE HE
SUCCEEDED ROSABETH MOSS KANTER A HARVARD BUSINESS SCHOOL PROFESSOR AND
PROMINENT CONSULTANT ON ORGANIZATIONAL BEHAVIOR WHO BECAME EDITOR IN 1989
MS KANTER WAS CREDITED WITH A WELLREGARDED REDESIGN OF THE MAGAZINE BUT
SHE WAS SAID TO HAVE RILED STAFF MEMBERS WITH A HEADSTRONG MANAGEMENT STYLE
PROMPTING SOME SUBORDINATE EDITORS TO LEAVE

WHEN MS KANTER'S DEPARTURE FROM THE MAGAZINE WAS ANNOUNCED LAST MAY THE
CHANGE WAS DESCRIBED AS PART OF A BROADER MOVE TO CREATE THE NEW PUBLISHING
OPERATION AND PUT AT THE HELM NOT A HARVARD FACULTY MEMBER BUT A PUBLISHING
INDUSTRY VETERAN ONE HOPE WAS TO APPOINT AS TOP EDITOR SOMEONE FOR WHOM THE
MAGAZINE WOULD BE A FULLTIME PRIORITY MR HARRIS WAS THAT PERSON

SEVERAL REVIEW STAFF MEMBERS SAID LAST NIGHT THAT THEY WERE AWARE OF MR
KURTZMAN'S APPOINTMENT BUT THEY DIDN'T KNOW OF MR HARRIS'S FATE TOLD OF
MR KURTZMAN'S STATEMENT THAT MR HARRIS WOULD NO LONGER BE EDITOR THOMAS
TEAL A SENIOR EDITOR SAID LAST NIGHT I'M A LITTLE TAKEN ABACK BY IT HE
SAID HE DIDN'T QUITE KNOW HOW TO INTERPRET THE APPOINTMENT AND SAID THAT
MR HARRIS HAD BEEN AT THE OFFICE YESTERDAY 9301080061 930108 BUSINESS
BRIEF PNC FINANCIAL CORP CHARGE OF 103 MILLION SLATED TO REFLECT
RETIREE BENEFITS

PNC FINANCIAL CORP SAID IT WILL TAKE A CHARGE OF 103 MILLION OR 45 CENTS
A FULLY DILUTED SHARE TO ADOPT A NEW ACCOUNTING STANDARD FOR RETIREE
BENEFITS

THE BANK HOLDING COMPANY ALSO SAID IT EXPECTS TO REPORT FOURTHQUARTER
EARNINGS OF 144 MILLION OR 61 CENTS A SHARE IN THE YEAREARLIER QUARTER
PNC HAD NET INCOME 1006 MILLION OR 48 CENTS A SHARE

PNC SAID IT WILL RESTATE RESULTS FOR 1992'S FIRST QUARTER TO REFLECT THE
CHARGE IT ALSO WILL RECORD ADDITIONAL EXPENSES RELATED TO THE ACCOUNTING
CHANGE OF 2 MILLION OR ONE CENT A SHARE IN EACH OF THE 1992 QUARTERS
9301080060 930108 CORPORATE FOCUS COMDISCO FOLLOWS INDUSTRY FANCY IN
COMPUTER CHOICE  LESSOR PLOTS SHIFT TO SMALLER MACHINES AND
NETWORKS FROM IBM MAINFRAMES  BY JAMES P MILLER STAFF REPORTER OF
THE WALL STREET JOURNAL

ROSEMONT ILL COMDISCO INC WANTS TO MAKE IT CLEAR IT DOESN'T LEASE
DINOSAURS

IN THE PAST DECADE THE COMPANY BECAME THE NATION'S LARGEST INDEPENDENT
LESSOR OF HIGHTECH EQUIPMENT ON THE STRENGTH OF A PORTFOLIO COMPRISED OF
MAINFRAMES AND RELATED GEAR BOUGHT FROM INTERNATIONAL BUSINESS MACHINES
CORP AND LEASED PRIMARILY TO FORTUNE 500 CLIENTS

THOSE BIG MACHINES WERE LONG THE UNDISPUTED LINCHPINS OF BIG CORPORATE
DATAPROCESSING SYSTEMS AS WELL AS COMDISCO'S OWN HIGHMARGIN CASH COW
BUT THE MAINFRAME'S DOMINANCE IS ON THE WANE A TREND SHARPLY UNDERSCORED
BY IBM'S CURRENT DIFFICULTIES AS COMPANIES MOVE TOWARD POWERFUL SMALLER
MACHINES TIED TOGETHER THROUGH NETWORKS

THE MOVE FROM THE MAINFRAME HAS HURT COMDISCO'S PROFITS WHICH HAVE BEEN
INCONSISTENT SINCE MID1990 IN REACTION THE COMPANY HAS ACCELERATED A
DIVERSIFICATION OF ITS LEASE PORTFOLIO TO A MIX MORE REFLECTIVE OF WHAT OUR
CUSTOMERS ARE DOING SAYS KENNETH PONTIKES CHAIRMAN AND PRESIDENT
COMDISCO'S LEASE OFFERINGS NOW INCLUDE A VARIETY OF HIGHTECH GEAR THAT
INCLUDES MEDICAL EQUIPMENT PERSONAL COMPUTERS AND COMPUTERNETWORKING
SYSTEMS COMMUNICATIONS EQUIPMENT AND POINTOFSALE DEVICES USED BY
RETAILERS THE COMPANY ALSO IS REVAMPING ITS STRATEGY TO PROFIT FROM THE
ACCELERATING SHIFT AWAY FROM MAINFRAMES ALTHOUGH MR PONTIKES MAINTAINS
THAT THE BIG MACHINES WILL STILL PLAY AN IMPORTANT ROLE ALBEIT SMALLER FOR
THE REST OF THE DECADE

AS PART OF ITS RESTRUCTURING COMDISCO LAST YEAR TRIMMED ITS WORK FORCE
ABOUT 10 MAINLY BY CUTTING 200 JOBS IN ITS CUSTOMER SUPPORT DIVISION AND
REALIGNING SALES OPERATIONS TO SERVE A CHANGING MARKET IT ALSO EXITED AN
UNPROFITABLE OIL AND GAS INVESTMENT AND REFINANCED DEBT TO CUT INTEREST
COSTS

WHILE ANALYSTS GENERALLY CONSIDER THE COMPANY'S STRATEGIC MOVES TIMELY AND
WELLCONCEIVED CHARGES ASSOCIATED WITH THE CORPORATE MAKEOVER HAVE BATTERED
COMDISCO'S EARNINGS PROFITS WERE ALREADY UNDER PRESSURE BECAUSE IN THE
CURRENT SOFT ECONOMY MANY LEASING CLIENTS HAVE BECOME RELUCTANT TO COMMIT
THEMSELVES TO BIGTICKET LEASES

BUSINESS HAS STRENGTHENED MODERATELY IN THE LATEST TWO QUARTERS HOWEVER
AND MR PONTIKES SAYS THE ECONOMY SEEMS TO BE TURNING AND OUR MESSAGE IS
STARTING TO GET ACROSS SO WE HAVE TO BE OPTIMISTIC

PIPER JAFFRAY ANALYST PATRICK BURTON WHO IS CARRYING A BUY RATING ON
COMDISCO SAYS HE'S HOPEFUL THAT YOU'LL SEE AS THE ECONOMY STRENGTHENS
THAT COMPANIES WILL OPEN THEIR PURSE STRINGS AND RESUME SPENDING FOR
IMPROVED DATAPROCESSING GEAR

NEVERTHELESS COMDISCO'S SHARE PRICE CONTINUES TO BUMP ALONG ONLY SLIGHTLY
ABOVE ITS 52WEEK LOWS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY
COMDISCO SHARES CLOSED OFF 125 CENTS AT 1450 DOWN 41 FROM ITS 1992
TRADING HIGH OF 24625 THE STOCK'S SHARPEST DECLINE OCCURRED EARLY LAST
YEAR

ONE WILD CARD HELPING HOLD THE STOCK DOWN IS POTENTIALLY COSTLY LITIGATION
FILED BY ITS BIGGEST AND MOST AGGRESSIVE COMPETITOR IBM'S CAPTIVE LEASING
OPERATION ANOTHER FACTOR COMPANY OFFICIALS THINK IS INVESTOR JITTERS
CAUSED BY IBM'S HIGHLY VISIBLE PROBLEMS MANY OF WHICH ARE LINKED TO
DIFFICULTIES AT BIG BLUE'S MAINFRAME DIVISION

COMDISCO'S MR PONTIKES SAYS THE COMPANY'S MAINFRAME LEVELS ARE FLAT OR
GROWING SLOWLY BUT THEY AREN'T IN ANY DANGER OF PLUMMETING AND HE STRESSED
IN A JUSTISSUED ANNUAL REPORT THAT THE COMPANY HAS RETAINED HISTORICAL
PROFIT MARGINS ON ITS LEASES WE HAVE NEVER ATTEMPTED TO BUY' MARKET
SHARE NOR WILL WE IN THE FUTURE HE WROTE IN A SIDEWAYS SWIPE AT IBM
CREDIT'S PUSH FOR AN EXPANDED SHARE

IN THE LATEST FISCAL YEAR MAINFRAMES MADE BY AMDAHL CORP DIGITAL
EQUIPMENT CORP AND SOME OTHER MAKERS IN ADDITION TO IBM DECLINED AS A
PERCENTAGE OF COMDISCO'S LEASING REVENUE TO 30 FROM 60 FIVE YEARS AGO
SUCH MACHINES STILL ACCOUNT FOR A DISPROPORTIONATE AMOUNT OF OPERATING
EARNINGS HOWEVER

I THINK YOU'RE GOING TO SEE MAINFRAMES AROUND FOR THE REST OF THE DECADE
MR PONTIKES SAID IN PLACE OF ITS CURRENT JOB AS THE PRIMARY SOURCE OF
NUMBERCRUNCHING POWER FOR A VARIETY OF CORPORATE TASKS THE MAINFRAME'S NEW
ROLE WILL MOST LIKELY BE AS A GIANT FILE SERVER THE ONE CENTRAL PLACE
WHERE DATA IS DEPOSITED FILE SERVERS COORDINATE TRAFFIC AND HOLD BANKS OF
DATA FOR NETWORKS OF PERSONAL COMPUTERS

EVEN AS COMPANIES REDUCE THE NUMBER OF MAINFRAMES THEY USE THE
CONSOLIDATION STILL LEAVES ROOM FOR A REDUCED MAINFRAME PRESENCE HE SAYS
MAINFRAMES WILL BE AROUND IN A BIG WAY CERTAINLY FOR THE NEXT THREE TO FOUR
YEARS IN THEIR CONVENTIONAL CAPACITY AND THEN WILL GRADUALLY EBB AWAY TO
A MUCH MORE LIMITED ROLE

COMDISCO IS SEEKING TO GET ON BOARD THE CHANGEOVER BY EXPANDING THE
TECHNOLOGYPLANNING AND MANAGEMENT SERVICES IT HAS ALWAYS PROVIDED TO
CLIENTS THE COMPANY IS EXPANDING ITS CONSULTING SERVICES ON THE MIGRATION
OF SUCH GEAR ADVISING ON AMONG OTHER THINGS THE VERY SYSTEM
CONSOLIDATIONS THAT ARE CUTTING INTO THE MAINFRAME'S INFLUENCE

THE COMPLEX LITIGATION WITH IBM REMAINS A QUESTION MARK LIKE OTHER LESSORS
COMDISCO STILL ONE OF IBM'S BIGGEST CUSTOMERS AND THE NATION'S LARGEST
OWNER OF IBM MAINFRAMES AFTER BIG BLUE ITSELF UPGRADES AND CUSTOMIZES
LEASED GEAR BY MIXING PARTS FROM USED AND NEW MACHINES TO PRODUCE CUSTOMIZED
MAINFRAMES THAT COST LESS THAN COMPARABLE MACHINES FROM IBM IN AN ERA OF
EVERSHORTENING PRODUCT CYCLES THAT PERMITS ITS CUSTOMERS TO FORESTALL
PURCHASING THE LATEST IBM MODEL

IBM DOESN'T LIKE THE PRACTICE AND IN 1991 IT FILED A SERIES OF SUITS
ALLEGING AMONG OTHER THINGS THAT COMDISCO WRONGFULLY TOOK PARTS OUT OF
MACHINES SUBLEASED FROM IBM CREDIT THEN INSTALLED THE PARTS IN
COMDISCOOWNED MACHINES A VICTORY FOR IBM COULD CRIMP COMDISCO'S
COMPETITIVE POSTURE SOME OBSERVERS BELIEVE

COMDISCO WHICH DENIES IT HAS DONE ANYTHING WRONG AND HAS ASSERTED IBM'S
MOVE IS A BID TO RESTRICT COMPETITION LAST YEAR TOOK A 20 MILLION CHARGE
TO BUILD A LEGAL WAR CHEST SUGGESTING IT IS PREPARED FOR A PROTRACTED
FIGHT SHAO WANG AN ANALYST WITH SMITH BARNEY SAYS HE'S TROUBLED BY THE
EXISTENCE AND THE DURATION OF THE LAWSUIT ADDING TARTLY THAT A
RESOLUTION WOULD BE OPTIMAL

LEASES AND REMARKETS A VARIETY OF HIGHTECHNOLOGY EQUIPMENT INCLUDING
MAINFRAME COMPUTERS WORKSTATIONS AND MEDICAL EQUIPMENT PROVIDES DATA
RECOVERY AND PROTECTION SERVICES

IN DISASTER RECOVERY SERVICES SUNGARD DATA SYSTEMS INC 9301080059 930108
BUSINESS BRIEF JOHN HANCOCK MUTUAL LIFE INSURANCE PLANNED CLOSING OF
31 OFFICES TO ELIMINATE ABOUT 700 JOBS

JOHN HANCOCK MUTUAL LIFE INSURANCE CO BOSTON SAID THAT IT WILL CLOSE 31
FIELD OFFICES AROUND THE COUNTRY ELIMINATING ABOUT 700 POSITIONS

RICHARD BEVILACQUA A JOHN HANCOCK SPOKESMAN SAID THAT SOME EMPLOYEES WILL
BE OFFERED JOBS IN OTHER OFFICES AS OPENINGS BECOME AVAILABLE BUT HE
COULDN'T SPECIFY A NUMBER AFTER THE CLOSINGS JOHN HANCOCK WILL HAVE MORE
THAN 200 OFFICES NATIONWIDE WITH A TOTAL OF ABOUT 16500 EMPLOYEES

MR BEVILACQUA SAID THAT THE MOVE IS PART OF A STRATEGY TO REDUCE EXPENSES
AND CREATE MORE EFFICIENCIES BY CLOSING OFFICES IN AREAS THAT CAN STILL BE
ADEQUATELY COVERED HE ADDED THAT OVER THE PAST 18 MONTHS JOHN HANCOCK HAS
OPENED 19 NEW OFFICES AND ADDED ABOUT 420 EMPLOYEES MOSTLY IN AREAS WHERE
THE COMPANY CONSIDERS POPULATION GROWTH TO BE RAPID SUCH AS CALIFORNIA
ARIZONA AND FLORIDA 9301080058 930108 BUSINESS BRIEF KAUFMAN & BROAD
HOME CORP NET INCOME INCREASED 13 IN BUILDER'S FOURTH QUARTER

KAUFMAN & BROAD HOME CORP'S NET INCOME ROSE 13 TO 149 MILLION OR 41
CENTS A SHARE FROM 133 MILLION OR 40 CENTS A SHARE IN THE FOURTH
QUARTER ENDED NOV 30

THE EARNINGS JUMP REFLECTED SUBSTANTIAL IMPROVEMENT IN CALIFORNIA HOME
BUILDING OPERATIONS AND HIGHER PROFIT FROM COMMERCIAL DEVELOPMENT THE LOS
ANGELES COMPANY SAID REVENUE INCREASED 21 TO 3846 MILLION FROM 3178
MILLION

THE IMPROVEMENT IN CALIFORNIA HOME BUILDING OPERATIONS MORE THAN OFFSET
DECLINING NEWHOME ORDERS IN FRANCE KAUFMAN & BROAD SAID CALIFORNIA
NEWHOME ORDERS ROSE 49 TO 1047 UNITS FROM 703 IN THE YEAREARLIER
QUARTER

DESPITE WEAK ECONOMIC CONDITIONS IN CALIFORNIA AND FRANCE KAUFMAN & BROAD
SAID IT PLANS TO EXPAND ITS OPERATIONS IN THOSE MARKETS THIS YEAR

FOR ALL OF FISCAL 1992 KAUFMAN & BROAD NET INCOME ROSE 6 TO 282 MILLION
OR 78 CENTS A SHARE FROM 265 MILLION OR 80 CENTS A SHARE REVENUE FELL
10 TO 109 BILLION FROM 122 BILLION 9301080057 930108 UNIONS AT
NORTHWEST AIR MAKE PITCH FOR EQUITY STAKE

ST PAUL MINN LABOR GROUPS AT NORTHWEST AIRLINES PRESENTED MANAGEMENT
WITH A PROPOSAL SEEKING AN 80 EQUITY STAKE IN THE CARRIER IN EXCHANGE FOR
900 MILLION IN CONCESSIONS

A LEADERSHIP FORUM CONSISTING OF SIX LABOR UNIONS SAID IT PRESENTED THE PLAN
AS A STARTING POINT TO OPEN TALKS WITH THE COMPANY TO REACH A DEFINITIVE
AGREEMENT THEY HAVE OUR EQUITY POSITION WHICH THEY ARE GOING TO HAVE TO
LOOK OVER IT LOOKS LIKE IT'S GOING TO BE NEGOTIATED FROM THAT POINT SAID
DENNIS BERNHARDT A SPOKESMAN FOR THE FORUM AND VICE CHAIRMAN OF THE
TRANSPORT WORKERS UNION WHICH REPRESENTS 160 NORTHWEST EMPLOYEES

A SPOKESMAN FOR NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID
THAT THE AIRLINE'S MANAGEMENT IS EXPECTING TO MEET SOON WITH THE LABOR
LEADERS TO OFFER A RESPONSE TO THE PLAN

IT ISN'T CLEAR HOW THE EQUITY OWNERSHIP WOULD WORK SINCE NORTHWEST HAS NO
PUBLIC STOCK OUTSTANDING BUT A UNION OFFICIAL WHO TOOK PART IN A MEETING
WITH MANAGEMENT EARLIER THIS WEEK IN MINNEAPOLIS SAID THE EQUITY STAKE COULD
TAKE THE FORM OF PREFERRED STOCK

THE UNIONS ALSO ASKED FOR AN EQUAL VOICE WITH MANAGEMENT ON NORTHWEST'S
BOARD WITH FIVE SEATS FOR LABOR FIVE FOR MANAGEMENT AND FIVE TO BE CHOSEN
BY BOTH LABOR AND MANAGEMENT 9301080056 930108 50OFF STORES SALES

SAN ANTONIO 50OFF STORES INC SAID ITS DECEMBER SALES INCREASED 41 TO
331 MILLION FROM 234 MILLION A YEAR EARLIER BUT THE DISCOUNT RETAILER
SAID DECEMBER SALES FOR STORES OPEN MORE THAN A YEAR DECREASED 33
9301080055 930108 INTERNATIONAL JAPAN TO EXTEND VOLUNTARY LIMITS ON
US CAR EXPORTS  BY JACOB M SCHLESINGER AND JOSEPH B WHITE 
STAFF REPORTERS OF THE WALL STREET JOURNAL

THE JAPANESE GOVERNMENT WAS TO ANNOUNCE TODAY AN EARLY INAUGURATION PRESENT
FOR PRESIDENTELECT CLINTON A ONEYEAR EXTENSION OF VOLUNTARY LIMITS ON
CAR EXPORTS TO THE US

BUT THE GESTURE WHICH WILL KEEP THE ANNUAL CEILING AT 1650000 UNITS
ISN'T LIKELY TO SATISFY US AUTO MAKERS AND AUTO WORKERS A FORD MOTOR CO
SPOKESMAN SAID THE EXTENSION IS NOT A MEANINGFUL ACTION

EARLIER IN THE WEEK TOP EXECUTIVES OF THE BIG THREE US AUTO MAKERS AND
THE UNITED AUTO WORKERS UNION MET FOR NEARLY TWO HOURS WITH MR CLINTON AND
URGED HIM TO TAKE A TOUGHER LINE ON JAPAN

INDEED MOST ANALYSTS SAY JAPAN'S LIMIT ON EXPORTS FOR THE YEAR STARTING
APRIL 1 1993 WON'T HAVE ANY DIRECT EFFECT IN REDUCING THE COUNTRY'S
AUTOMOTIVE TRADE SURPLUS BY FAR THE LARGEST PART OF THE USJAPAN TRADE
IMBALANCE

IN THE YEAR ENDED MARCH 31 JAPAN EXPORTED 1730000 CARS TO THE US THAT
NUMBER IS EXPECTED TO FALL IN THE CURRENT FISCAL YEAR NOT BECAUSE THE
CEILING WAS LOWERED TO 1650000 CARS BUT BECAUSE OF THE WEAKNESS IN THE
US AUTO MARKET

STILL JAPAN IS CLEARLY STARTING TO SCRAMBLE TO APPEASE THE INCOMING
ADMINISTRATION MR CLINTON HASN'T YET TIPPED HIS HAND ON TRADE POLICY AND
HIS TRADERELATED APPOINTEES DON'T HAVE MUCH OF A TRACK RECORD ON THE
SUBJECT BUT JAPANESE GOVERNMENT AND INDUSTRY OFFICIALS FEAR THAT THE FIRST
DEMOCRATIC WHITE HOUSE IN 12 YEARS WILL DEMAND MORE TRADE CONCESSIONS THAN
ITS PREDECESSORS

JAPANESE OFFICIALS ARE ALSO WORRIED THAT AT ABOUT THE TIME MR CLINTON IS TO
BE SWORN IN TOKYO WILL ANNOUNCE THAT JAPAN'S OVERALL TRADE SURPLUS FOR 1992
WILL TOP 100 BILLION THE LARGEST FOR ANY NATION EVER

IN ADDITION TO THE EXTENSION OF THE AUTOEXPORT LIMIT JAPAN'S MINISTRY OF
INTERNATIONAL TRADE AND INDUSTRY HAS BEEN TRYING TO DRUM UP PUBLICITY LATELY
FOR ITS PLANS TO ENHANCE TAX INCENTIVES FOR IMPORTS INTO JAPAN IT IS ALSO
PROMOTING MEASURES TO HELP FOREIGN COMPANIES SET UP OFFICES IN JAPAN

JAPAN FIRST AGREED UNDER US PRESSURE TO THE AUTOMOTIVE EXPORT CEILING IN
1981 THE QUOTA AT ONE POINT WAS AS HIGH AS 2300000 CARS AND WAS CUT TO
ITS CURRENT LEVEL LAST YEAR CRITICS HAVE LONG SAID THAT THE LIMIT HAS HAD
LITTLE DIRECT EFFECT ON JAPANESE CAR MAKERS ESPECIALLY SINCE JAPANESE
COMPANIES HAVE EXPANDED AUTOMOTIVE PRODUCTION IN NORTH AMERICA

THE LIMITS HAVE BEEN MEANINGLESS FOR SOME TIME A GENERAL MOTORS CORP
SPOKESMAN SAID WHAT'S NEEDED IS MEANINGFUL ACTION TO REDUCE THE TRADE
DEFICIT THERE OUGHT TO BE INCREASED JAPANESE PURCHASES OF US VEHICLES AND
PARTS GM IS DISCUSSING WITH TOYOTA MOTOR CORP PROPOSALS UNDER WHICH
TOYOTA WOULD HELP SELL IN JAPAN AS MANY AS 50000 USMADE GM CARS
ANNUALLY

UAW PRESIDENT OWEN BIEBER URGED MR CLINTON EARLIER THIS WEEK TO SEEK A
FURTHER REDUCTION IN THE AUTOEXPORT QUOTA MR CLINTON MADE NO COMMITMENTS
AT THE TIME BUT MR BIEBER AND THE BIG THREE EXECUTIVES SAID THEY WERE
PLEASED WITH THE MEETING

THE JAPANESE AUTO INDUSTRY HOWEVER APPEARS HAPPY WITH ITS GOVERNMENT'S
ACTION OF COURSE WE BELIEVE THAT FREE TRADE IS ULTIMATELY THE BEST
DIRECTION A TOYOTA SPOKESMAN SAID BUT HE ADDED WE RESPECT THE
GOVERNMENT'S DECISION AND WE WILL ABIDE BY IT 9301080054 930108 BUSINESS
BRIEF SHARPER IMAGE CORP HOLIDAY SALES CONTRIBUTE TO FORECAST OF A
1992 PROFIT

SHARPER IMAGE CORP BUOYED BY SOLID HOLIDAY SALES SAID IT EXPECTS TO
REPORT A PROFIT FOR THE YEAR ENDING JAN 31

THE SAN FRANCISCO RETAILER OF FLASHY GADGETS AND OFFBEAT WARES DIDN'T GIVE A
SPECIFIC ESTIMATE BUT THE PROFIT PROJECTION SIGNIFIES BIG IMPROVEMENT OVER
THE PREVIOUS FISCAL YEAR WHEN SHARPER IMAGE POSTED A LOSS OF 34 MILLION
OR 41 CENTS A SHARE ON REVENUE OF 1421 MILLION

SHARPER IMAGE SAID DECEMBER SALES INCREASED 62 TO 341 MILLION FROM 321
MILLION A YEAR AGO COMPARABLE STORE SALES ROSE 34 AND CATALOG SALES
JUMPED 22

FOR THE NINE MONTHS ENDED OCT 31 THE COMPANY POSTED A LOSS OF 4 MILLION
OR 48 CENTS A SHARE ON REVENUE OF 918 MILLION LAST YEAR'S NINEMONTH
LOSS WAS 75 MILLION OR 91 CENTS A SHARE ON REVENUE OF 856 MILLION

IN OVERTHECOUNTER TRADING YESTERDAY SHARPER IMAGE CLOSED AT 2875
UNCHANGED 9301080053 930108 PENNZOIL SELLS A 4025 MILLION ISSUE 
EXCHANGEABLE INTO CHEVRON COMMON  BY CALEB SOLOMON STAFF REPORTER
OF THE WALL STREET JOURNAL

HOUSTON PENNZOIL CO SOLD 4025 MILLION OF AN UNUSUAL VARIETY OF
DEBENTURES THAT ALLOW HOLDERS TO EXCHANGE THEM FOR SOME OF THE COMMON STOCK
THE COMPANY OWNS IN CHEVRON CORP

THE MOVE IS A PENNZOIL TACTIC TO REALIZE GREATER VALUE FROM ITS 52 CHEVRON
STAKE WHICH HAS BARELY APPRECIATED SINCE IT WAS AMASSED BEGINNING IN 1989
PENNZOIL'S PLAN IS FOR DEBENTURE BUYERS TO TAKE OVER SOME OF ITS RISK ON
CHEVRON

THE DEBENTURES PRICED AT PAR TO YIELD 65 ARE EXCHANGEABLE INTO CHEVRON
SHARES AT 84125 APIECE ROUGHLY 20 ABOVE CHEVRON'S CURRENT STOCK PRICE
THE BONDS MATURE IN 10 YEARS AND CAN BE CALLED BEGINNING IN 1998

IT'S COMMON FOR COMPANIES TO OFFER BONDS THAT CAN BE EXCHANGED FOR STOCK
BUT THEY TYPICALLY ARE SWAPPED FOR SHARES OF THE ISSUER GRANT PORTER A
MANAGING DIRECTOR OF LEHMAN BROTHERS THE OFFERING'S LEAD UNDERWRITER SAID
ABOUT A HALFDOZEN COMPANIES IN RECENT YEARS HAVE MADE OFFERINGS SIMILAR TO
PENNZOIL'S BASICALLY DEBENTURE HOLDERS RECEIVE INTEREST INCOME WHILE
BETTING THAT CHEVRON'S STOCK PRICE WILL RISE

IT'S UNUSUAL AND INNOVATIVE SAID BERNARD PICCHI AN OIL ANALYST AT
KIDDER PEABODY & CO AND OFTEN A CRITIC OF PENNZOIL THE COMPANY HAS COME
UP WITH A PLAN THAT MAKES THE BEST OF A NOTREALLYGREAT SITUATION HE
SAID REFERRING TO PENNZOIL'S HOLDINGS OF 172 MILLION CHEVRON SHARES ALSO
UNTIL RECENTLY OPERATIONS OF PENNZOIL AN OIL AND GAS COMPANY HAD BEEN
LANGUISHING

PENNZOIL ACCUMULATED 222 BILLION OR 94 OF CHEVRON STOCK FROM 1989
THROUGH 1991 AT AN AVERAGE PRICE OF 6736 A SHARE AND THE INVESTMENT
HASN'T WORKED OUT AS EXPECTED PENNZOIL'S CHIEF EXECUTIVE OFFICER JAMES
PATE LAST YEAR SAID HE WAS DISAPPOINTED IN THE SHARE PRICE BEHAVIOR AND
THOUGHT IT WOULD BE CONSIDERABLY HIGHER BY THIS TIME CHEVRON WAS QUOTED
LATE YESTERDAY AT 68625 DOWN 125 IN NEW YORK STOCK EXCHANGE COMPOSITE
TRADING

PENNZOIL WOUND UP SWAPPING 117 BILLION OR ABOUT HALF OF ITS STAKE LAST
YEAR FOR CHEVRON OIL AND GAS RESERVES IN A STATEMENT YESTERDAY MR PATE
SAID PENNZOIL HAS NO PLANS TO DISPOSE OF ADDITIONAL CHEVRON SHARES AT THIS
TIME HE MAINTAINED THAT OUR OUTLOOK FOR PENNZOIL'S INVESTMENT IN CHEVRON
COMMON STOCK IS VERY POSITIVE

PENNZOIL SAID IT WOULD USE THE PROCEEDS TO REPLACE HIGHERCOST REFUNDABLE
DEBT AND OTHER OBLIGATIONS THE COMPANY ESTIMATED THE MOVE WILL INCREASE NET
INCOME BY 5 MILLION THIS YEAR AND BY 10 MILLION ANNUALLY IN 1994 AND
BEYOND

IF ALL THE DEBENTURES ARE EXCHANGED ABOUT 48 MILLION CHEVRON SHARES WILL
BE SWAPPED IN THE MEANTIME PENNZOIL RETAINS VOTING RIGHTS FOR THE CHEVRON
STOCK AND WILL CONTINUE TO RECEIVE DIVIDENDS CURRENTLY 137 MILLION
ANNUALLY

THE OFFER IS THE LATEST IN PENNZOIL'S DEBT RESTRUCTURING LAST MONTH THE
COMPANY CALLED 273 MILLION OF HIGHCOST DEBT USING SOME OF THE PROCEEDS
FROM ITS RECENT INITIAL STOCK OFFERING OF PUROLATOR PRODUCTS CO

WHEN PENNZOIL FIRST BOUGHT CHEVRON STOCK THE COMPANIES HAD ACRIMONIOUS
RELATIONS BUT THEY HAVE SOFTENED RECENTLY PENNZOIL AND LEHMAN BROTHERS
MADE COURTESY CALLS TO CHEVRON MONDAY NIGHT TO TELL THE COMPANY OF THE
OFFER WE WISH THEM SUCCESS SAID GEORGE CARTER CHEVRON'S TREASURER HE
SAID CHEVRON HASN'T BOUGHT ANY OF THE PENNZOIL DEBENTURES 9301080052
930108 BUSINESS BRIEF PUBLIC SERVICE CO OF NEW MEXICO UTILITY AGREES
TO RECOVER SOME COSTS CREATING CHARGE

PUBLIC SERVICE CO OF NEW MEXICO AGREED WITH THE NEW MEXICO PUBLIC SERVICE
COMMISSION'S STAFF TO RECOVER 605 MILLION OF COSTS FROM RATEPAYERS
ASSOCIATED WITH SETTLEMENT OF A TAKEORPAY LAWSUIT

ORIGINALLY THE ALBUQUERQUE NM UTILITY HAD SOUGHT TO RECOVER 76 MILLION
PLUS SIMPLE INTEREST AT THE RATE OF 9 A YEAR TO ADJUST RESERVES FOR THIS
NEW AGREEMENT WHICH MUST BE APPROVED BY THE COMMISSION THE COMPANY WILL
TAKE A CHARGE OF 2 MILLION OR THREE CENTS A SHARE IN THE FOURTH QUARTER
OF 1992 IN 1991'S FOURTH QUARTER THE COMPANY EARNED 39 MILLION OR FOUR
CENTS A SHARE ON 2153 MILLION IN REVENUE

THE UTILITY'S GAS CO OF NEW MEXICO WAS INVOLVED IN TAKEORPAY CONTRACT
LITIGATION WITH CONOCO INC A UNIT OF DU PONT CO AND AMOCO CORP'S AMOCO
PRODUCTION CO UNIT TAKEORPAY REFERS TO CERTAIN CLAUSES IN A NATURAL GAS
CONTRACT REQUIRING THE BUYER TO TAKE A CERTAIN AMOUNT OF GAS AT A GIVEN
PRICE OR PAY ANYWAY

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 9301080051 930108 BUSINESS BRIEF FEDERATED DEPARTMENT STORES
INC LIMITED TRADING RESTRICTIONS TO BE LIFTED NEXT MONTH

FEDERATED DEPARTMENT STORES INC IS TAKING THE TRADING RESTRICTIONS OFF 27
MILLION SHARES OF ITS STOCK EFFECTIVE FEB 4

THE NEW YORK COMPANY TOOK A SIMILAR STEP LAST OCTOBER WHEN IT ENDED
RESTRICTIONS ON 11 MILLION SHARES HELD BY FORMER CREDITORS A SPOKESWOMAN
NOTED THAT ONLY 18 MILLION OF THE COMPANY'S 126 MILLION SHARES OUTSTANDING
WILL STILL BE SUBJECT TO TRADING RESTRICTIONS AFTER FEB 4

THIS WILL ALLOW OUR CREDITORS TO FREELY TRADE THEIR STOCK AT A TIME AND IN
A MANNER WHEN SUCH AN ACTION WON'T BE DISRUPTIVE TO THE SECURITIES MARKETS
SAID CAROL SANGER VICE PRESIDENT OF CORPORATE AFFAIRS AT FEDERATED

WHEN FEDERATED EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION IN FEBRUARY
1992 ABOUT 56 MILLION RESTRICTED SHARES WERE ISSUED TO CREDITORS AS PART OF
THE COMPANY'S REORGANIZATION 9301080050 930108 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 5/16 HIGH 3 1/16 LOW 3 1/8 NEAR CLOSING BID 3 1/8
OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS
OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC

DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE
FEDERAL RESERVE BANKS

CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL
SOURCE TELERATE SYSTEMS INC

COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 320 30
TO 89 DAYS 322 90 TO 119 DAYS 328 120 TO 149 DAYS 330 150 TO 179
DAYS 333 180 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS IN MULTIPLES OF 1000 333 30 DAYS 334 60 DAYS 336 90
DAYS

CERTIFICATES OF DEPOSIT 278 ONE MONTH 282 TWO MONTHS 286 THREE
MONTHS 297 SIX MONTHS 323 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 350 SIX MONTHS

BANKERS ACCEPTANCES 316 30 DAYS 317 60 DAYS 320 90 DAYS 326 120
DAYS 331 150 DAYS 334 180 DAYS NEGOTIABLE BANKBACKED BUSINESS
CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO
MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2
 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE
MONTHS 3 9/16 SIX MONTHS 4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED
RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE
MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE
APPEARING AT TOP OF THIS COLUMN

FOREIGN PRIME RATES CANADA 725 GERMANY 11 JAPAN 450 SWITZERLAND
788 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE MONDAY JANUARY 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 787 60 DAYS 796 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 789 60
DAYS 798 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
9301080049 930108 WHAT'S NEWS  BUSINESS AND FINANCE

BOND PRICES TUMBLED ON POSITIVE ECONOMIC NEWS THAT RENEWED WORRIES OF RISING
INTEREST RATES THE US LONG BOND FELL MORE THAN A POINT THE BOND SELLOFF
CARRIED OVER INTO STOCKS WITH THE DOW JONES INDUSTRIALS DROPPING 3647
POINTS TO 326869 THE DOLLAR ENDED MOSTLY HIGHER

BIG RETAIL CHAINS POSTED HEALTHY DECEMBER SALES GAINS A FURTHER SIGN THAT
THE REBOUND IN CONSUMER SPENDING MAY BE HERE TO STAY SHOPPERS BOUGHT AT
DEPARTMENT STORES SPECIALTY STORES AND DISCOUNTERS ALIKE

THE MICROSOFT ANTITRUST CASE WILL BE VOTED ON NEXT MONTH BY THE FTC WHICH
WILL DECIDE WHAT ACTION IF ANY IT WILL TAKE AGAINST THE WORLD'S LARGEST
SUPPLIER OF COMPUTER SOFTWARE

THE US ECONOMY SHOULD SEE A BROAD BUT MODERATE RECOVERY IN 1993 WITH
HIGHTECH INDUSTRIES EXPECTED TO EXCEL THE COMMERCE DEPARTMENT SAID IN ITS
ANNUAL INDUSTRIAL OUTLOOK

IBM ELEVATED THREE EXECUTIVES TO ITS TOP DECISIONMAKING PANEL MAKING TWO
OF THEM CLEAR FRONTRUNNERS TO SUCCEED JOHN AKERS AS CHIEF EXECUTIVE

AIR CANADA AND A US INVESTMENT GROUP MOVED CLOSER TO TAKING A MAJORITY
STAKE IN CONTINENTAL AIRLINES AS THE US DEPARTMENT OF TRANSPORTATION
APPROVED THEIR PROPOSED 450 MILLION INVESTMENT IN THE CARRIER

FRANK LORENZO FORMER CHAIRMAN OF CONTINENTAL'S PARENT CAN REENTER THE
AIRLINE INDUSTRY AFTER ENDING A NONCOMPETE PACT WITH HIS FORMER COMPANY HE
ALSO SETTLED CREDITORS' CLAIMS OVER HIS SALE OF CONTINENTAL SHARES

JAPAN WILL EXTEND FOR A YEAR ITS LIMITS ON CAR EXPORTS TO THE US BUT THE
GESTURE ISN'T LIKELY TO SATISFY AMERICAN AUTO MAKERS AND AUTO WORKERS

THE LEADING SAUDI BANKING FAMILY WAS RECENTLY PERMITTED BY THE FED TO MOVE
MORE THAN 500 MILLION OUT OF THE US DESPITE THE LEGAL PROBLEMS OF THE
FAMILY'S MOST PROMINENT MEMBER SAY PEOPLE FAMILIAR WITH THE TRANSFER

HUGE LIFEINSURANCE COMPANIES OWNED BY THEIR POLICYHOLDERS PLAN TO SET ASIDE
BILLIONS OF DOLLARS TO COVER POTENTIAL REAL ESTATE LOSSES THE ACTIONS STEM
FROM AN ACCOUNTING CHANGE THAT AFFECTS ALREADY IDENTIFIED PROBLEMS NOT
FURTHER EROSION IN THE HOLDINGS

PENNZOIL SOLD AN UNUSUAL VARIETY OF DEBENTURES THAT ALLOW HOLDERS TO
EXCHANGE THEM FOR SOME OF THE COMMON STOCK THE COMPANY OWNS IN CHEVRON

MONSANTO SIGNED A LETTER OF INTENT TO BUY THE ORTHO LAWN AND GARDEN PRODUCTS
BUSINESS OF CHEVRON'S CHEMICAL SUBSIDIARY FOR ABOUT 400 MILLION

TIME WARNER IS RAISING 1 BILLION THROUGH A DEBENTURE OFFER THE COMPANY
PLANS TO USE THE PROCEEDS TO REDEEM OR REPURCHASE PART OF AN EXPENSIVE
SERIES OF PREFERRED STOCK ISSUES

GERMANY'S CENTRAL BANK CUT ONE OF ITS INTEREST RATES IN A MOVE TO EASE
PRESSURES IN EUROPE'S BELEAGUERED MONETARY SYSTEM HOWEVER ANALYSTS DOUBTED
THE MOVE WOULD CALM THE FOREIGNEXCHANGE MARKET FOR LONG

ROHR'S ROBERT GOLDSMITH RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
THE AEROSPACE COMPANY IN ORDER TO TAKE EARLY RETIREMENT

IBM'S KUEHLER PREDICTED A BIG ROLE FOR HIS COMPANY IN THE EMERGING INDUSTRY
COMBINING COMPUTERS ENTERTAINMENT AND CONSUMER ELECTRONICS HE ALSO
UNVEILED JOINT PROJECTS WITH SEVERAL CONSUMERORIENTED CONCERNS

TOKYO STOCKS ENDED LITTLE CHANGED WITH THE NIKKEI INDEX EASING 190 TO
1678098 LONDON SHARES WEAKENED

BONDS LEHMAN BROTHERS TREASURY INDEX 468001 OFF 4472

COMMODITIES OIL 1895 A BARREL OFF 9 CENTS DOW JONES FUTURES INDEX
12369 UP 122 SPOT INDEX 12212 UP 095

DOLLAR 12515 YEN UNCHANGED 16370 MARKS UP 00030 9301080048 930108
BUSINESS BRIEF US HEALTHCARE INC HMO MEMBERSHIP INCREASED BY
165000 IN '92 FIRM SAYS

US HEALTHCARE INC SAID MEMBERSHIP IN ITS HEALTH MAINTENANCE ORGANIZATIONS
GREW BY 165000 MEMBERS LAST YEAR OR 13 TO A TOTAL OF MORE THAN 14
MILLION

THE BLUE BELL PA PROVIDER OF MANAGED CARE SERVICES SAID THE MEMBERSHIP
INCREASE WAS THE LARGEST IN SEVEN YEARS THE COMPANY ADDED THAT PRELIMINARY
INDICATIONS ARE THAT STRONG GROWTH WILL CONTINUE IN 1993

DAVID SIMON US HEALTHCARE'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL
SAID IT WAS TOO EARLY TO BE MORE SPECIFIC ABOUT GROWTH PROJECTIONS BUT HE
SAID THERE ARE TWO KEY FACTORS BEHIND MEMBERSHIP GROWTH THE INCREASING
ACCEPTANCE OF MANAGED CARE BY EMPLOYERS AND THE COMPETITIVE LEVEL OF OUR
PREMIUMS WHERE WE OPERATE THE COMPANY HAS HMOS IN EIGHT NORTHEASTERN
STATES FROM MARYLAND TO NEW HAMPSHIRE

US HEALTHCARE ROSE 150 TO 4475 YESTERDAY IN NATIONAL OVERTHECOUNTER
TRADING 9301080047 930108 BUSINESS BRIEF NUMED INC HEALTH CARE
PROVIDER FILES FOR CHAPTER 11 PROTECTION

NUMED INC CITING ONGOING CASH FLOW PROBLEMS AND DEFAULTS ON ITS OCTOBER
INTEREST PAYMENTS TO DEBENTURE HOLDERS FILED FOR CHAPTER 11
BANKRUPTCYCOURT PROTECTION FROM CREDITORS

THE HEALTH CARE PROVIDER HAS ASSETS OF 206 MILLION AND LIABILITIES OF
648 MILLION A SPOKESWOMAN SAID

NUMED SAID IT EXPECTS TO FILE A PLAN FOR REORGANIZATION BASED ON AGREEMENTS
WITH HOLDERS OF ABOUT 42 OF ITS DEBENTURES OUTSTANDING THE PLAN WOULD
PRESERVE THE RIGHTS OF SECURED CREDITORS AND SENIOR DEBT AND PROVIDE FOR
THE CONVERSION OF THE DEBENTURES AND OTHER UNSECURED LIABILITIES TO COMMON
STOCK

UNDER THE PROPOSED PLAN THE UNSECURED CREDITORS WILL RECEIVE ABOUT 935 OF
THE ENCINO CALIF COMPANY'S COMMON STOCK AND HOLDERS OF PREFERRED STOCK
WILL GET 385 EXISTING HOLDERS OF COMMON STOCK WILL RETAIN A 165
INTEREST AND EXISTING MANAGEMENT WILL RETAIN A 1 STAKE 9301080046
930108 PROGRAM TRADING

NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 31 ACCOUNTED FOR 13 OR
AN AVERAGE OF 234 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME

BROKERAGE FIRMS EXECUTED AN ADDITIONAL 57 MILLION DAILY SHARES OF PROGRAM
TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING
IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A
TOTAL VALUE OF 1 MILLION OR MORE

OF THE PROGRAM TOTAL ON THE BIG BOARD 22 INVOLVED STOCKINDEX ARBITRAGE
DOWN FROM 361 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN
STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE
DIFFERENCES

SOME 258 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN
ACCOUNTS OR PRINCIPAL TRADING WHILE 529 INVOLVED TRADING FOR CUSTOMERS
AN ADDITIONAL 213 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO
FACILITATE CUSTOMER TRADES

OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA DID ALL OF ITS PROGRAM TRADING
FOR ITS OWN ACCOUNT WHILE SALOMON BROTHERS MORGAN STANLEY SHEARSON LEHMAN
AND KIDDER PEABODY DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS
9301080045 930108 TECHNOLOGY BRIEF SCIOS NOVA INC COMPANY TO TAKE A
CHARGE OF 205 MILLION IN 4TH PERIOD

SCIOS NOVA INC MOUNTAIN VIEW CALIF SAID IT EXPECTS A CHARGE OF 205
MILLION IN THE FOURTH QUARTER

THE BIOPHARMACEUTICAL COMPANY SAID THE CHARGE IS RELATED TO ITS ACQUISITION
YESTERDAY OF NOVA TECHNOLOGY LP A LIMITED PARTNERSHIP SET UP TO FUND
RESEARCH AND DEVELOPMENT OF CERTAIN ANTIINFLAMMATORY AGENTS SCIOS NOVA
ACQUIRED THE LIMITED PARTNERSHIP IN EXCHANGE FOR 22 MILLION SHARES OF STOCK
VALUED AT ABOUT 215 MILLION BASED ON THE COMPANY'S PRICE IN LATE
OVERTHECOUNTER TRADING YESTERDAY OF 975 UP 125 CENTS

THE COMPANY WOULDN'T SPECIFY WHAT THE CHARGE WOULD DO TO ITS FOURTHQUARTER
EARNINGS BUT SAID IT EXPECTS A LOSS FOR THE PERIOD THE COMPANY IS STILL IN
THE RESEARCH AND DEVELOPMENT PHASE AND THUS TYPICALLY POSTS QUARTERLY
LOSSES

FOR THE NINE MONTHS SCIOS NOVA HAD A NET LOSS OF 963 MILLION OR 488 A
SHARE ON SALES OF 112 MILLION INCLUDING 851 MILLION OF WRITEOFFS
RELATED TO A MERGER 9301080044 930108 BUSINESS BRIEF A&W BRANDS INC
 FIRM PLANS STOCK SPLIT SEES RISE IN 4THQUARTER PROFIT

A&W BRANDS INC PROJECTED A SLIGHT INCREASE IN FOURTHQUARTER PROFIT
DECLARED A 3FOR2 STOCK SPLIT AND ANNOUNCED A PROGRAM TO BUY BACK AS MANY
AS 750000 POSTSPLIT COMMON SHARES

THE WHITE PLAINS NY SOFTDRINK MARKETER SAID IT EXPECTS TO REPORT NET
INCOME OF ABOUT 49 CENTS A SHARE UP FROM 48 CENTS A SHARE A YEAR EARLIER
THAT WOULD BRING FULLYEAR EARNINGS TO 167 A SHARE UP 9 FROM 153 A
SHARE IN 1991 CORE BRAND UNIT SALES INCREASED 2 IN THE QUARTER

THE SPLIT WILL BE PAYABLE ABOUT FEB 16 TO STOCK OF RECORD FEB 1 THE
COMPANY SAID A&W CURRENTLY HAS ABOUT 94 MILLION SHARES OUTSTANDING

THE COMPANY SAID ITS STOCK REPURCHASE PROGRAM WOULD BE OVER AN EXTENDED
PERIOD OF TIME AND WOULD BE FINANCED ONLY WITH AVAILABLE CASH NOT BORROWED
FUNDS 9301080043 930108 CORRECTIONS & AMPLIFICATIONS

WEIRTON STEEL CORP'S LENDERS AGREED TO RAISE THE COMPANY'S DEBTTOEQUITY
RATIO REQUIREMENT TO 21 TO 1 FROM 2 TO 1 THROUGH JUNE 30 THE COMPANY
PROVIDED INCORRECT INFORMATION FOR AN ARTICLE YESTERDAY IN WHICH IT WAS
REPORTED THAT LENDERS AGREED TO MAINTAIN THE RATIO REQUIREMENT AT 2 TO 1
THE RATIO WAS SCHEDULED TO TIGHTEN TO 175 TO 1 ON DEC 31

MCCAFFREY & MCCALL NEW YORK RETAINED A SMALL PORTION OF THE 10 MILLION
TIFFANY US ADVERTISING ACCOUNT A HEADLINE IN YESTERDAY'S ADVERTISING
COLUMN GAVE THE ERRONEOUS IMPRESSION THAT THE AD AGENCY HAD LOST THE ENTIRE
ACCOUNT

PRUDENTIAL SECURITIES INC'S TARGET PROGRAM WHICH CONSTRUCTS MUTUAL FUND
PORTFOLIOS FOR CUSTOMERS USES NINE FUNDS CREATED FOR THE PROGRAM BUT
MANAGED BY OUTSIDE MONEY MANAGERS A TABLE ACCOMPANYING WEDNESDAY'S YOUR
MONEY MATTERS COLUMN DESCRIBED THE FUNDS SIMPLY AS PRUDENTIAL FUNDS

THE PHILIPPINES AND THE US AGREED TO ALLOW THE US EXPORTIMPORT BANK TO
EXTEND GUARANTEES TO LENDERS IN THE PHILIPPINES TO PROTECT THEM FROM
POLITICAL RISKS IN WEDNESDAY'S WORLD WIRE COLUMN IT WAS INCORRECTLY STATED
THAT THE GUARANTEES WOULD BE EXTENDED TO INVESTORS 9301080042 930108
ROCKWELL AND UNIT OF SUMITOMO JOIN TO SEEK RAIL CAR JOB

LOS ANGELES ROCKWELL CORP SAID IT JOINED WITH A UNIT OF SUMITOMO CORP
TOKYO TO PURSUE A CONTRACT TO BUILD RAIL CARS FOR THE LOS ANGELES COMMUTER
SYSTEM THE PAIRING MEETS A PROJECT REQUIREMENT FOR 60 DOMESTIC CONTENT

THE JAPANESE COMPANY WAS AWARDED A CONTRACT TO BUILD RAIL CARS FOR LOS
ANGELES COUNTY'S PROPOSED GREEN LINE SYSTEM IN 1991 BUT AFTER A FIRESTORM
OF JAPANBASHING AND AMERICA FIRST DEMANDS THE COMMISSION REVERSED ITS
AWARD AND REOPENED THE BIDDING

THE ROCKWELLSUMITOMO PAIRING IS THE THIRD TEAM TO SUBMIT A PROPOSAL FOR THE
COMMUTER RAIL CONTRACT THE VALUE OF ITS BID TO BUILD 87 CARS WASN'T
DISCLOSED

OTHER BIDDERS ARE A TEAM MADE UP OF MORRISON KNUDSEN CORP BOISE IDAHO
AND TWO DEFENSE CONTRACTORS LOCKHEED CORP CALABASAS CALIF AND GENERAL
MOTORS CORP'S HUGHES AIRCRAFT UNIT AND ANOTHER TEAM CONSISTING OF
MONTREALBASED BOMBARDIER INC AND NORTHROP CORP LOS ANGELES

A FOURTH TEAM IS EXPECTED TO SUBMIT A PROPOSAL TODAY A SPOKESMAN FOR THE
LOS ANGELES COUNTY TRANSPORTATION COMMISSION SAID

BIDS FOR THE PROJECT ARE DUE BY MONDAY THE TECHNICAL PART OF THE PROPOSALS
WILL BE EVALUATED FOR ABOUT A MONTH AND THEN PRICES WILL BE CONSIDERED THE
TRANSPORTATION SPOKESMAN SAID AWARDING OF THE CONTRACT ISN'T EXPECTED FOR
SEVERAL MONTHS

ROCKWELL WHICH HAS INTERESTS IN THE ELECTRONICS AEROSPACE AUTOMOTIVE AND
GRAPHICS BUSINESSES DOESN'T CURRENTLY MAKE PASSENGER RAIL CARS BUT IT
BUILT RAIL CARS AND ELECTRONICS FOR THE AIR FORCE RAIL GARRISON LAUNCH
CONTROL SYSTEM THOSE CARS TRAVEL ON STANDARD TRACKS AND RESEMBLE RAILROAD
FREIGHT CARS BUT WERE DESIGNED TO TRANSPORT MISSILES AND TO HOUSE TROOPS
FOR AS LONG AS A MONTH

A SUMITOMO SPOKESMAN SAID THE JAPANESE COMPANY COMBINED WITH ROCKWELL SEAL
BEACH CALIF IN PART BECAUSE OF THE PROJECT'S US CONTENT REQUIREMENT AND
ALSO BECAUSE ROCKWELL HAS STRENGTHS AND EXPERTISE IN ELECTRONICS A
ROCKWELL SPOKESMAN SAID THE TEAM FORMED BECAUSE THE COMPANIES HAD
COMPLEMENTARY SKILLS 9301080041 930108 BUSINESS BRIEF FORD MOTOR
CO CANADIAN UNIT PLANS TO CLOSE ONE PLANT ENLARGE ANOTHER

FORD MOTOR CO'S CANADIAN UNIT SAID IT PLANS TO CLOSE ITS NIAGARA FALLS
ONTARIO GLASS PLANT IN 1994 BUT HAS TRIPLED THE SIZE OF AN ALUMINUM PLANT
IN WINDSOR ONTARIO

FORD SAID IT IS CLOSING THE NIAGARA PLANT BECAUSE OF SERIOUS PROBLEMS OF
OVERCAPACITY IN FORD'S GLASS OPERATIONS THE 294 ACTIVE EMPLOYEES AND 97
WORKERS ON INDEFINITE LAYOFF WILL BE OFFERED JOBS AT OTHER COMPANY
LOCATIONS FORD SAID

THE WINDSOR ALUMINUM PLANT WHICH BEGINS PRODUCTION IN EARLY 1994 HAS BEEN
TRIPLED IN SIZE FROM THE 84000 SQUAREFEET FACILITY ORIGINALLY PLANNED
FORD SAID IT IS BOOSTING ITS INVESTMENT IN THE ALUMINUM PLANT TO 200
MILLION FROM 59 MILLION EMPLOYMENT IN THE PLANT WILL EVENTUALLY REACH 350

THE PLANT WILL BUILD THE CYLINDER BLOCKS FOR FORD'S NEW V6 ENGINE WHICH
WILL BE BUILT AT FORD'S CLEVELAND ENGINE ASSEMBLY PLANT THE WINDSOR
FACILITY ALSO WILL SUPPLY SOME OF THE ALUMINUM BLOCKS REQUIRED FOR FORD'S
46LITER V8 ENGINE ASSEMBLED AT ITS ROMEO MICH ENGINE FACILITY
9301080040 930108 BUSINESS BRIEF ORYX ENERGY CO FOURTHQUARTER
CHARGE SET IN FURTHER ROUND OF LAYOFFS

ORYX ENERGY CO SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF 9 MILLION FOR
FURTHER RESTRUCTURING

THE DEBTLADEN DALLAS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID IT
WAS UNDERGOING ADDITIONAL PERSONNEL REDUCTIONS AN ORYX SPOKESMAN DID NOT
DISCLOSE HOW MANY EMPLOYEES WOULD BE LAID OFF IN THIS CURRENT ROUND

ORYX PLAGUED BY SLUGGISH OIL PRICES ANNOUNCED A SWEEPING RESTRUCTURING
PROGRAM LAST FALL THAT INCLUDED ABOUT 500 MILLION IN ASSET SALES AN EQUITY
OFFERING AND PLANS TO TRIM 1000 EMPLOYEES FROM ITS WORK FORCE OF 2600

AS OF YEAR END ORYX HAD TRIMMED ITS PERSONNEL TO ABOUT 1700 EMPLOYEES
SOLD ABOUT 275 MILLION IN ASSETS AND RAISED 344 MILLION FROM AN EQUITY
SALE PROCEEDS WERE USED TO PAY DOWN ITS DEBT WHICH NOW STANDS AT 17
BILLION SAID THE SPOKESMAN

IN THE FOURTH QUARTER OF 1991 ORYX HAD A LOSS OF 40 MILLION WHICH
INCLUDED A 35 MILLION RESTRUCTURING CHARGE ON 370 MILLION OF REVENUE
9301080039 930108 WHO'S NEWS NEW YORK SWITCH NAMES CEO

HACKENSACK NJ NEW YORK SWITCH CORP SAID IT NAMED GARY S ROBOFF
INTERIM CHIEF EXECUTIVE OF THIS BANKOWNED ADMINISTRATOR OF THE NYCE
REGIONAL AUTOMATED TELLER MACHINE NETWORK

MR ROBOFF 44 YEARS OLD WHOSE APPOINTMENT IS EFFECTIVE IMMEDIATELY
SUCCEEDS DAVID A HUEMER WHO DIED DEC 17 AFTER ONLY FOUR MONTHS IN THE
JOB MR ROBOFF WILL TEMPORARILY LEAVE HIS POST AS VICE PRESIDENT AND
DIRECTOR OF STRATEGY PLANNING AND BUSINESS DEVELOPMENT AT NEW YORK'S
CHEMICAL BANKING CORP

MR ROBOFF HAS BEEN A DIRECTOR AT NEW YORK SWITCH SINCE 1986 AND CHAIRMAN
FROM 1988 TO 1990 THE COMPANY SAID IT FORMED A SEARCH COMMITTEE TO FIND A
PERMANENT CHIEF EXECUTIVE ALAN P POHLMAN 45 WILL CONTINUE AS CHIEF
OPERATING OFFICER RESPONSIBLE FOR DAYTODAY OPERATIONS

THE COMPANY IS OWNED BY BANK OF NEW YORK CO BAYBANKS INC CHASE MANHATTAN
CORP CHEMICAL BANKING CORP FLEET FINANCIAL GROUP INC HSBC HOLDINGS
PLC'S MARINE MIDLAND BANKS INC AND NATIONAL WESTMINSTER BANK PLC
9301080038 930108 TECHNOLOGY BRIEF AST RESEARCH INC COMPANY
INTRODUCES A PC USING WIRELESS TECHNOLOGY

AST RESEARCH INC IRVINE CALIF INTRODUCED A PERSONAL COMPUTER THAT CAN
USE WIRELESS TECHNOLOGY TO COMMUNICATE WITH OTHER PCS

AST SAID ITS PRODUCT CALLED ADVANTAGE NET IS THE THE FIRST OFFTHESHELF
WIRELESS PC IT USES RADIO SIGNALS TO COMMUNICATE WITH OTHER PCS IN
RELATIVELY CLOSE QUARTERS IT WOULD ELIMINATE THE NEED TO PHYSICALLY LINK A
NETWORK OF OFFICE COMPUTERS WITH THE USUAL BULKY WIRES AND CABLES

OTHER COMPUTER MAKERS HAVE PRODUCED VARIOUS WIRELESS COMPONENTS BUT AST
SAID ADVANTAGE IS THE FIRST PC TO USE WIRELESS TECHNOLOGY AS A NETWORKING
MECHANISM

IN OVERTHECOUNTER TRADING YESTERDAY AST CLOSED AT 22375 DOWN 125
CENTS 9301080037 930108 TRACKING TRAVEL  BY JONATHAN DAHL

SEVERAL SMALL AIRLINES ARE OFFERING SOME GREAT DEALS IF ONLY YOU CAN GET
THEM

INSTEAD OF PAYING 700 TO FLY ROUND TRIP AT THE LAST MINUTE FROM NEWARK
NJ TO FORT LAUDERDALE FLA TRAVELERS CAN PAY 198 ON A NEW CARRIER
CALLED SKYBUS THE FARE HAS NO SATURDAYNIGHT OR ADVANCEPURCHASE
RESTRICTIONS SIMILARLY AMERICAN TRANS AIR BASED IN INDIANAPOLIS HAS A
328 BOSTONLAS VEGAS ROUNDTRIP FARE AGAIN WITH NO RESTRICTIONS

BUT FINDING OUT ABOUT THESE BARGAINS BEFORE FLIGHTS ARE SOLD OUT OR FARES
CHANGE IS A TASK EVEN EXPERIENCED TRAVELERS FIND DAUNTING MOST OF THESE
SMALL AIRLINES FLY TO JUST A FEW CITIES SKYBUS BASED IN FORT LAUDERDALE
HAS FLIGHTS ONLY BETWEEN NEWARK AND THREE FLORIDA DESTINATIONS SO IT CAN'T
ADVERTISE WIDELY AMERICAN TRANS AIR RUNS SOME LOCAL NEWSPAPER ADS BUT
UNTIL A YEAR AGO IT WASN'T LISTED ON TRAVELAGENCY COMPUTERS SO NOT ALL
TRAVEL AGENTS KNOW ABOUT IT SKYBUS STILL ISN'T LISTED

YOU HAVE TO GO BY WORDOFMOUTH IN A LOT OF CASES SAYS ED PERKINS EDITOR
OF CONSUMER REPORTS TRAVEL LETTER IT'S FRUSTRATING WHEN YOU HEAR HOW LOW
SOME PRICES ARE

EVEN MORE FRUSTRATING IS TRYING TO REACH THESE AIRLINES THEIR PHONE LINES
ARE OFTEN SO JAMMED THAT CALLERS MAY GET EITHER A BUSY SIGNAL OR A LONG
RECORDING APOLOGIZING FOR THE DELAY IT'S A CONCERN FOR US AND WE'RE
HIRING NEW RESERVATIONISTS EVERY DAY SAYS RICK ARSCOTT MARKETING VICE
PRESIDENT OF SKYBUS

AMERICAN TRANS AIR SAYS THAT IT IS ALSO HIRING BUT THAT ITS LINES ARE OFTEN
TIED UP BECAUSE CALLERS WHO GET THROUGH STAY ON THE LINE LONGER THAN NORMAL
MANY PEOPLE AREN'T FAMILIAR WITH THE AIRLINE AND THEY HAVE A LOT OF
QUESTIONS SAYS A SPOKESWOMAN FOR ATA THE CARRIER HAS BEEN AROUND SINCE
1973 BUT ISN'T WELL KNOWN IN CHICAGO OR BOSTON ITS TWO NEWEST MARKETS

THE NUMBER OF THESE SMALL CARRIERS HAS BEEN GROWING IN 1992 15 NEW
AIRLINES WENT INTO OPERATION COMPARED WITH JUST FIVE A YEAR EARLIER MANY
ARE STRICTLY NOFRILLS CARRIERS CHARGING EXTRA FOR MEALS AND CHECKED BAGS
SKYBUS MAINLY LEASES ITS JETS FROM OTHER CARRIERS SO ITS NAME ISN'T EVEN ON
ITS PLANES THE CARRIER ALSO CHARGES AS MUCH AS 25 TO BOOK TICKETS OVER THE
PHONE RATHER THAN IN PERSON

BUT CONSUMER GROUPS SAY THAT IN PART BECAUSE OF THESE AIRLINES' SIZE THEIR
SERVICE CAN BE FRIENDLY IT'S NOT FANTASTIC BUT I'VE HEARD SOME GOOD
THINGS SAYS HERBERT TEISON EDITOR OF TRAVEL SMART A NEWSLETTER IN DOBBS
FERRY NY MR PERKINS BASED ON FEEDBACK FROM READERS AND STAFF DESCRIBES
THEIR SERVICE AS BEING LIKE COACH ON ANY OTHER AIRLINE WHICH IS TO SAY
LOUSY BUT NO WORSE THAN UNITED AIRLINES

IN EARLY EVERY SEGMENT OF THE TRAVEL INDUSTRY HAS BEEN HIT WITH HIGHER
TAXES CRUISELINE PASSENGERS MAY BE NEXT

MORE THAN 30 CARIBBEAN COUNTRIES HAVE PROPOSED RAISING PORT TAXES TO 10 A
PASSENGER FROM 2 OR 3 THAT COULD INCREASE CRUISE PRICES MORE THAN 50 A
HEAD BECAUSE CRUISE SHIPS OFTEN STOP AT MANY PORTS DURING A TRIP

THE COUNTRIES SAY THEY NEED THE MONEY TO IMPROVE DOCKING FACILITIES AND ADD
RETAIL SPACE AT THE PORTS A LOT OF PORTS NOW HAVE BETTER PHONE LINES AND
BETTER ROADS SAYS LUTHER MILLER A SPOKESMAN FOR THE CARIBBEAN TOURISM
ORGANIZATION WHICH REPRESENTS GOVERNMENTS AND TRAVEL BUSINESSES THESE ARE
THINGS THAT PEOPLE TAKE FOR GRANTED BUT THAT COST MONEY

CRUISE LINES HOWEVER SAY TRAVELERS ARE SIMPLY A CAPTIVE MARKET THE
ISLANDS KNOW WE HAVE TO GO THERE SO I GUESS IT'S AN EASY WAY FOR THEM TO
INCREASE REVENUE SAYS CARLOS LEON MANAGER OF MARKETING ANALYSIS FOR THE
NORWEGIAN CRUISE LINES UNIT OF KLOSTER CRUISES

THE INCREASE WAS SUPPOSED TO TAKE EFFECT JAN 1 BUT WAS DELAYED AT LEAST A
FEW WEEKS WHILE THE CRUISE INDUSTRY AND CARIBBEAN GOVERNMENTS MEET SAYS MR
MILLER WE STILL HAVE A DIALOGUE GOING

THE LATEST RESEARCH ON INTERNATIONAL AIRLINE SAFETY MAY WORRY
GLOBETROTTERS

ACCORDING TO A NEW BOOK WHY AIRPLANES CRASH AVIATION SAFETY IN A CHANGING
WORLD THE RATE OF FATAL ACCIDENTS IS MORE THAN FOUR TIMES HIGHER IN ASIA
EASTERN EUROPE LATIN AMERICA AND THE MIDDLE EAST THAN IN NORTH AMERICA IN
AFRICA THE RATE IS 15 TIMES HIGHER THAN IN THE US AND CANADA THE
DIFFERENCES BETWEEN COUNTRIES WERE MUCH BIGGER THAN WE EXPECTED SAYS
CLINTON OSTER A PROFESSOR AT INDIANA UNIVERSITY AND ONE OF THE THREE
AUTHORS OF THE BOOK WHICH EXAMINED DATA ON 15000 ACCIDENTS FROM THE '70S
AND '80S

PILOT ERROR IS THE LEADING CAUSE OF FATAL ACCIDENTS IN MOST PARTS OF THE
WORLD TERRORISM WAS THE LEADING CAUSE OF FATAL CRASHES IN AFRICA BUT WAS
SECOND IN THE MIDDLE EAST TO WEATHER AND TERRAIN ENGINE FAILURE BROUGHT
DOWN MORE PLANES IN EASTERN EUROPE THAN ANYTHING ELSE

THIRD WORLD COUNTRIES SUFFER FROM POOR AIRCRAFT MAINTENANCE AND PILOT
TRAINING MR OSTER NOTES BUT LESSERKNOWN PROBLEMS ALSO CONTRIBUTE TO
THEIR HIGH ACCIDENT RATES MANY THIRD WORLD AIRPORTS DON'T HAVE
SOPHISTICATED LANDING OR WEATHERRADAR SYSTEMS THEY ALSO DON'T HAVE MUCH
EMERGENCY EQUIPMENT TO HANDLE CRASHES FOR EXAMPLE THE BOOK FOUND THAT
ABOUT 40 OF PASSENGERS SURVIVE FATAL ACCIDENTS IN THE U S AND CANADA
COMPARED WITH ONLY 20 IN LATIN AMERICA 9301080036 930108 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

TIME WARNER INC 1 BILLION ISSUE OF SENIOR NOTES DUE JAN 15 2013 WAS
PRICED AT PAR TO YIELD 9125 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD
OF 175 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND RATED BA2 BY MOODY'S
INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE
ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO

RJR NABISCO INC 750 MILLION ISSUE OF 8 SENIOR NOTES DUE JAN 15
2000 WAS PRICED AT 9950 TO YIELD 8095 THE NONCALLABLE NOTES WERE PRICED
AT A SPREAD OF 1675 BASIS POINTS ABOVE THE TREASURY WHENISSUED SEVENYEAR
NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE
SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO

JP MORGAN BANK DELAWARE 500 MILLION ISSUE OF 370 BANK NOTES DUE
JAN 14 1994 WAS PRICED AT 99951 TO YIELD 375 INITIALLY THE
NONCALLABLE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH LEHMAN
BROTHERS RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WAS PRICED AT A
SPREAD OF 15 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL JP MORGAN BANK
DELAWARE IS A UNIT OF JP MORGAN & CO

FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION ISSUE OF MEDIUMTERM
NOTES DUE JAN 14 1998 WAS PRICED AT PAR TO YIELD 625 THE NOTES
NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 25 BASIS POINTS ABOVE
THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED
BY MERRILL LYNCH & CO

FIRST UNION CORP 250 MILLION ISSUE OF 675 NOTES DUE JAN 15 1998
WAS PRICED AT 99707 TO YIELD 682 PRICING OF THE NONCALLABLE NOTES WAS AT
A YIELD SPREAD OF 077 PERCENTAGE POINTS OVER THE FIVEYEAR TREASURY NOTE
RATED BAA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO

WESTDEUTSCHE LANDESBANK 250 MILLION ISSUE OF MEDIUMTERM NOTES DUE JAN
14 1994 WAS PRICED AT PAR TO YIELD 38 INITIALLY THE NOTES WHICH WILL
BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO WERE INITIALLY
PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL THE
NONCALLABLE ISSUE IS RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P

SWEDISH EXPORT CREDIT CORP 150 MILLION ISSUE OF 825 DEBENTURES DUE
JAN 15 2023 WAS PRICED AT 99079 TO YIELD 8334 THE DEBENTURES
NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 88 BASIS POINTS ABOVE
THE TREASURY 30YEAR BOND RATED DOUBLEA1 BY MOODY'S AND TRIPLEA BY S&P
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS

FEDERAL HOME LOAN BANKS 125 MILLION ISSUE OF STEPUP NOTES WITH A
FINAL MATURITY OF JAN 26 1996 WAS PRICED AT PAR TO YIELD 425 THE
ISSUE'S COUPON STEPS UP OR INCREASES TO 58 ON JAN 26 1994 THE DEAL
WAS PRICED AT A SPREAD OF 59 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL
THE NOTES ARE NONCALLABLE FOR ONE YEAR THE ISSUER CAN THEN CALL THE NOTES
AFTER GIVING NOTEHOLDERS 30DAYS' NOTICE DEAN WITTER REYNOLDS INC AND
GRUNTAL & CO WILL MANAGE THE DEAL

UNION PACIFIC CORP 1012 MILLION ISSUE OF EQUIPMENT TRUST CERTIFICATES
DUE JAN 15 1998 WAS PRICED AT PAR TO YIELD 644 THE NONCALLABLE ISSUE
WAS PRICED AT A SPREAD OF 43 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE
RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO

NORTHERN TRUST CORP 100 MILLION ISSUE OF BANK NOTES DUE JAN 14 1994
WAS PRICED AT PAR TO YIELD 375 INITIALLY THE BANK NOTES WILL BE REOFFERED
AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE NONCALLABLE ISSUE WAS
PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE THE TREASURY ONEYEAR BILL THE
OFFERING IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P

FEDERAL HOME LOAN MORTGAGE CORP 85375 MILLION ISSUE OF REMIC
SECURITIES IS BEING OFFERED BY KIDDER PEABODY THE OFFERING SERIES GOLD
1456 IS BACKED BY FREDDIE MAC GOLD 15YEAR 750 MORTGAGE SECURITIES THE
COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 820 AND WEIGHTED AVERAGE
REMAINING TERM TO MATURITY OF 1467 YEARS

FEDERAL NATIONAL MORTGAGE ASSOCIATION 50 MILLION ISSUE OF REAL ESTATE
MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY KIDDER PEABODY &
CO THE OFFERING SERIES 1993G3 IS BACKED BY 8 GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED
AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS

FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION ISSUE OF REMIC SECURITIES
IS BEING OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES G005 IS
BACKED BY 8 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE SECURITIES
THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975
YEARS

DALLAS INDEPENDENT SCHOOL DISTRICT 2404 MILLION SERIES 1993
UNLIMITEDTAX SCHOOL BUILDING AND REFUNDING BONDS HAVE BEEN PRICED BY A
FIRST SOUTHWEST CO GROUP YIELDS RANGE FROM 480 IN 1998 TO 590 IN 2007
THE OFFERING'S 93 MILLION OF ZEROCOUPON BONDS WERE PRICED TO YIELD 470
AND 490 AT THEIR MATURITIES IN 1996 AND 1997 RESPECTIVELY THE BONDS ARE
GUARANTEED BY THE TEXAS PERMANENT SCHOOL FUND AND CARRY TRIPLEA RATINGS
FROM MOODY'S AND S&P THE 93 MILLION OF ZEROCOUPON BONDS WERE PRICED TO
YIELD 470 AND 490 AT THEIR MATURITIES IN 1996 AND 1997 RESPECTIVELY

SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT 745 MILLION SERIES 1993
SUBORDINATE SALES TAX REVENUE NOTES HAVE BEEN PRICED BY A DEAN WITTER
REYNOLDS INC GROUP AT PREPRICING THE 3632 MILLION 460S ROSE TO
36415 MILLION AT 9960 TO YIELD 470 IN 1997 UP FROM 465 THE 3799
MILLION 480S INCREASED TO 38085 MILLION AT 9952 TO YIELD 490 IN 1998
UP FROM 485 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S INVESTORS
SERVICE INC AND STANDARD & POOR'S CORP

TARRANT COUNTY TEXAS HEALTH FACILITIES DEVELOPMENT CORP 625 MILLION
SERIES 1993 HOSPITAL REVENUE REFUNDING AND IMPROVEMENT BONDS HAVE BEEN
PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 370 IN 1994 TO
725 IN 2028 BONDS DUE IN 2028 HAVE BEEN RATED BAA BY MOODY'S AND TRIPLEB
BY S&P THE REST OF THE SECURITIES ARE INSURED BY THE MUNICIPAL BOND
INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P

HUDSON COUNTY NJ IMPROVEMENT AUTHORITY 60 MILLION SERIES 1993
SOLIDWASTE SYSTEM REVENUE BONDS HAVE BEEN PRICED BY A PAINEWEBBER INC
GROUP YIELDS RANGE FROM 425 IN 1994 TO 690 IN 2020 THE ISSUE HAS BEEN
RATED TRIPLEBMINUS BY S&P

EUROPEAN INVESTMENT BANK SUPRANATIONAL 400 MILLION OF 8 BONDS MATURING
JUNE 10 2003 AT AN ISSUE AND REOFFER PRICE OF 9673 TO YIELD 8324
SEMIANNUALLY VIA SAMUEL MONTAGU YIELD SPREAD 13 BASIS POINTS OVER 8 GILT
OF 2003 FEES UNDISCLOSED SEPARATELY 200 BILLION LIRA OF 1275 EUROBONDS
DUE FEB 15 2000 AT AN ISSUE PRICE OF 10172 VIA IMI BANK LUXEMBOURG
YIELD 12785 AFTER DISCOUNTING FULL FEES FEES 1875

INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 500 MILLION SWISS FRANCS
OF 550 PUBLICLY LISTED BONDS DUE MARCH 3 2003 PRICED AT 10200 VIA SWISS
BANK CORPORATION FEES 2

BELL CANADA CANADA 300 MILLION SWISS FRANCS OF 550 PUBLICLY LISTED
BONDS DUE FEB 5 2003 PRICED AT 10125 VIA UNION BANK OF SWITZERLAND
FEES 2375

CARLSBERG FINANCE A/S DENMARK 100 MILLION SWISS FRANCS OF 550
PUBLICLY LISTED BONDS DUE FEB 12 2003 PRICED AT 10150 VIA UNION BANK OF
SWITZERLAND FEES 2375

CITY OF LINZ AUSTRIA 60 SWISS MILLION FRANCS OF 550 PRIVATELY PLACED
NOTES DUE JANUARY 25 2003 PRICED AT 10075 VIA BANK LEU AG FEES TOTAL
2125 POINTS

ELECTRICITE DE FRANCE FRANCE 150 MILLION SWISS FRANCS OF 525
PUBLICLY LISTED BONDS MATURING FEB 24 1998 PRICED AT 10225 VIA CREDIT
SUISSE FEES 1625

STATE BANK OF NEW SOUTH WALES AUSTRALIA 150 MILLION AUSTRALIAN OF
925 EUROBONDS DUE FEB 18 2003 AT AN ISSUE PRICE OF 10020 TO YIELD
943 ANNUALLY AFTER DISCOUNTING FULL FEES VIA DEUTSHCE BANK LTD GUARANTEED
BY THE STATE OF NEW SOUTH WALES AUSTRALIA FEES 2125

CREDIT LOCAL DE FRANCE FRANCE ONE BILLION FRANCS OF 7625 EUROBONDS
DUE FEB 2 1998 AT PRICE OF 9980 VIA BNP CAPITAL MARKETS LTD PARTLY PAID
STRUCTURE 40 OF THE PRICE IS DUE ON FEB 2 THIS YEAR AND THE REMAINING 60
ON FEB 2 1994 FEES 0375 9301080035 930108 INTERNATIONAL WINDS SEND
MIST OF OIL OVER SHETLANDS AS WAVES DELAY EFFORT TO DRAIN TANKER N 
 BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL

SUMBURGH SCOTLAND A SWAMPED LEAKING SUPERTANKER HAS TURNED THE SOUTHERN
QUADRANT OF THE GALESWEPT SHETLAND ISLANDS INTO A SMELLY GREASY MESS
COATING ROADS PASTURES AND HOUSES IN OIL AND STIRRING PUBLIC HEALTH
CONCERNS

SOME FAMILIES HAVE ALREADY BEGUN TO EVACUATE THE AREA AND BRITISH OFFICIALS
ARE SERIOUSLY CONSIDERING A FULLSCALE AIRLIFT OF THE ISLAND'S LARGE SHEEP
HERDS TO MAINLAND SCOTLAND AS 60MILEANHOUR WINDS CONTINUE TO SATURATE
PASTURES IN CRUDE OIL BLOWN IN A FINE SPRAY FROM THE SEA

MEANWHILE OIL CLEANUP AND RECOVERY CREWS SPENT A SECOND DAY ON THE
SIDELINES BARRED BY WINDS AND HEAVY SEAS FROM BOARDING THE STRICKEN TANKER
OR LAUNCHING BEACH CLEANUP OPERATIONS INDEED FRUSTRATED OFFICIALS WITH
BRITAIN'S MARINE POLLUTION CONTROL UNIT SAY IT MIGHT BE A WEEK OR MORE
BEFORE WEATHER CONDITIONS ALLOW ANY MEANINGFUL OIL RECOVERY TO BEGIN

OILCONTAINMENT BOOMS AND SKIMMERS THAT SIPHON OIL FROM THE OCEAN SURFACE
DON'T WORK IN WATERS HIGHER THAN 10 FEET SEAS HERE HAVE BEEN RUNNING THREE
TO FOUR TIMES THAT AND A QUIRK IN LOCAL WEATHER CONDITIONS USUALLY MEANS
THAT SEAS REMAIN HIGH HERE TWO DAYS AFTER GALES SUBSIDE

THAT MEANS IF WE GET A BREAK IN THE WEATHER IN THE NEXT COUPLE OF DAYS 
AND WE'RE NOT EXPECTED TO IT WOULD BE FOUR DAYS BEFORE WE COULD GET INTO
ACTION SAYS DR BEDBOROUGH THE MARINE POLLUTION CONTROL UNIT'S CHIEF
SCIENTIST

IN THE BESTCASE SCENARIO SALVAGERS WILL BE ABLE TO BOARD THE TANKER
INSTALL PORTABLE PUMPS AND BEGIN PUMPING OIL INTO BARGES TOWED INTO PLACE
NEARBY BUT SUCH AN OPERATION IS COMPLETELY WEATHER DEPENDENT AND WOULD
TAKE A NUMBER OF DAYS ONCE BEGUN MR BEDBOROUGH ADDS

AT THE SAME TIME FEARS GROW THAT THE TANKER LODGED ON ROCKS IN A COVE
ABOUT TWO MILES FROM SUMBURGH MIGHT STILL BREAK UP AND LOOSE THE REST OF
ITS 25 MILLION GALLONS OF OIL INTO THE SEA HOW MUCH OIL HAS SPILLED STILL
ISN'T KNOWN BUT MUCH OF THE CARGO IS THOUGHT TO STILL BE INTACT

WINDS HAVE KEPT THE HEAVIEST CONCENTRATIONS CONFINED TO BAYS NEAR SUMBURGH
A VILLAGE OF 7000 THOUGH THIN NARROW SLICKS OF OIL HAVE MEANDERED 14
MILES UP THE ISLAND'S WESTERN COAST A WIND SHIFT COULD CHANGE ALL THAT AND
PUSH OIL INTO MORE ENVIRONMENTALLY SENSITIVE COVES FARTHER UP THE COAST

ALREADY SCIENTISTS ARE PUTTING BIRD DEATHS IN THE HUNDREDS ALTHOUGH ONLY
250 OR SO CARCASSES HAVE BEEN RECOVERED WE KNOW MANY MORE HAVE BEEN KILLED
THAT WE SIMPLY WILL NEVER FIND SAYS PETE ELLIS A SPOKESMAN FOR THE ROYAL
SOCIETY FOR THE PROTECTION OF BIRDS

FISHERMEN ALSO FEAR THE OIL WILL DAMAGE THEIR STOCKS PARTICULARLY SALMON
FARMS AND SHELLFISH BEDS NEAR THE SPILL SITE THE BAYS HERE TEAM WITH SEALS
KILLER WHALES AND OTHER MARINE ANIMALS THOUGHT TO BE IN JEOPARDY THE OILY
WINDS ALSO ARE COATING CROPS AND GRAZING LAND FORCING SOME FARMERS TO BEGIN
MOVING THEIR SHEEP FLOCKS INLAND

YOU CAN SMELL THE OIL 15 MILES DOWNWIND OF THE TANKER SAYS JOHN MCKWE
WHO LIVES HALFWAY BETWEEN SUMBURGH AND LERWICK WHILE HEALTH OFFICIALS SAY
OILFUME LEVELS AREN'T SERIOUS ENOUGH TO POSE CONCERNS RESIDENTS ARE ALREADY
COMPLAINING OF NAUSEA AND SORE THROATS I CAN TELL YOU PEOPLE ARE QUITE
WORRIED SAYS MR MCKWE

THE USOWNED LIBERIANREGISTERED BRAER RAN AGROUND TUESDAY WHILE
CARRYING LIGHT CRUDE OIL FROM NORWAY TO CANADA THE SHIP OWNED BY BRAER
CORP A BERMUDA SUBSIDIARY OF BERGVALL & HUDNER SHIP MANAGEMENT CO
STAMFORD CONN WAS CARRYING OIL OWNED BY ULTRAMAR CORP

OIL EXPERTS SAY AS MUCH AS HALF OF THE LIGHT CRUDE MAY EVAPORATE WITH
2030 MORE DISPERSED BY HEAVY WEATHER OIL SPILL INTELLIGENCE REPORT A
TRADE NEWSLETTER ISSUED A STATEMENT SAYING IT'S A BAD SITUATION THAT
WILL GET WORSE BUT WE DON'T EXPECT IT TO BE AS BAD AS THE EXXON VALDEZ

MEANWHILE IN LONDON A GOVERNMENT INQUIRY INTO THE SPILL IS COMING UNDER
FIRE IT IS NOT A QUESTION OF WHETHER THAT SHIP SHOULD HAVE BEEN 10 OR 15
MILES FROM THE SHETLANDS WHEN THERE ARE THOUSANDS OF SUBSTANDARD SHIPS THAT
COME INTO OUR WATERS EVERY YEAR SAYS BRIAN ORRELL ASSISTANT GENERAL
SECRETARY OF THE MERCHANT NAVY OFFICERS' UNION HE BELIEVES THE GOVERNMENT
SHOULD EXAMINE THE SAFETY STANDARD OF SHIPS 9301080034 930108 BUSINESS
BRIEF AMES DEPARTMENT STORES INC STRONG SALES ARE REPORTED FOR
RECENT HOLIDAY SEASON

AMES DEPARTMENT STORES INC WHICH EMERGED FROM CHAPTER 11 BANKRUPTCYLAW
PROTECTION LAST WEEK POSTED STRONG SALES FOR THE JUST COMPLETED HOLIDAY
SELLING SEASON

FOR THE FIVE WEEKS ENDED DEC 26 1992 AMES HAD COMPARABLESTORE SALES OF
3908 MILLION A 62 INCREASE FROM SALES OF 3679 MILLION IN THE
YEAREARLIER PERIOD

NET SALES WERE 4475 MILLION FOR THE FIVEWEEK PERIOD A 52 INCREASE OVER
NET SALES OF 4255 MILLION A YEAR EARLIER

WE ARE PLEASED WITH THE STRONG INCREASE IN COMPARABLESTORE SALES DURING
THE MOST IMPORTANT SELLING SEASON OF THE YEAR SAID PETER THORNER AMES'S
CHIEF OPERATING OFFICER GIVEN THE NORTHEAST'S COMPETITIVE ENVIRONMENT AND
DIFFICULT ECONOMIC CONDITIONS WE ARE QUITE PLEASED WITH THIS PERFORMANCE

ROCKY HILL CONNBASED AMES WHICH EMERGED FROM BANKRUPTCYLAW PROTECTION
ON DEC 30 OPERATES 309 DISCOUNT DEPARTMENT STORES IN 14 NORTHEASTERN
STATES 9301080033 930108 TECHNOLOGY SMALL PORTABLE AND DIGITAL ARE
DAZZLING AND A BIT DIZZYING AT ELECTRONICS SHOW  BY PATRICK M
REILLY STAFF REPORTER OF THE WALL STREET JOURNAL

LAS VEGAS THE CONSUMERELECTRONICS INDUSTRY HAS SEEN THE FUTURE AND IT'S
SMALL AND IT'S PORTABLE

MANUFACTURERS AT THE WINTER CONSUMER ELECTRONICS SHOW HERE ARE DISPLAYING A
DIZZYING AND SOMETIMES KOOKY ARRAY OF PORTABLE BUT POWERFUL PRODUCTS MANY
OF THEM EQUIPPED WITH STATEOFTHEART DIGITAL TECHNOLOGY

COMING SOON DIGITAL RADIO YOU CAN READ SMALLER VERSIONS OF THE NEW
DIGITALRECORDING FORMATS MINIDISC AND DCC DIGITAL COMPACT CASSETTE
EYEGLASSES THAT PROVIDE AN UPCLOSEANDPERSONAL TV SCREEN WAISTLINE TAPE
PLAYERS THAT COUNT THE CALORIES BURNED AS YOU RUN AND A WRISTWATCHPAGER
FOR KIDS

THIS MAMMOTH ELECTRONICS BAZAAR ATTENDED BY MORE THAN 80000 INDUSTRY
EXECUTIVES AND SALESMEN IS UPBEAT FOR AN INDUSTRY RACKED BY RECESSION THE
PAST TWO YEARS US SALES ROSE A SURPRISING 8 TO 382 BILLION IN 1992
FAR BETTER THAN THE 2 GROWTH THE INDUSTRY HAD EXPECTED THIS YEAR
MANUFACTURERS ARE ROLLING THE DICE ON DEVICES TO FIT PEOPLE'S FASTPACED AND
MOBILE LIVES

DEALERS ARE IMPRESSED BY THE STEADY STREAM OF NEW MACHINERY BUT THEY WORRY
ABOUT A GLUT THE NEW DIGITAL PRODUCTS ARE GREAT BUT THERE HAS TO BE
CONCERN THAT WE FACE A CASE OF CONSUMER CONFUSION SAYS TOM CAMPBELL OF DOW
STERO/VIDEO A SAN DIEGOBASED CHAIN OF ELECTRONICS STORES

ONE HOT TICKET AT THE TRADE SHOW THIS WEEK HAS BEEN THE RADIO BROADCASTDATA
SYSTEM A DIGITAL TECHNOLOGY THAT ADDS WRITTEN MESSAGES TO REGULAR BROADCAST
SIGNALS RBDS ALLOWS A SPECIALLY EQUIPPED FM HOME RECEIVER OR CAR RADIO TO
DISPLAY THE TRANSMITTED MESSAGES SUCH AS RADIOSTATION CALL LETTERS AND ADS
EMERGENCY MESSAGES TRAFFIC BULLETINS EVEN SPORTS SCORES AND PAGING
INFORMATION

WHILE A TYPICAL RBDS RADIODISPLAY PANEL COULD READ BON JOVI KEEP THE
FAITH' AS THE BAND'S SONG PLAYS IT COULD ALSO CARRY AN ARRAY OF MESSAGES
FOR LISTENERS TO NEWS AND TALK RADIO NONMUSIC DATA COULD INCLUDE AIRLINE
SCHEDULES STOCKMARKET QUOTES AND WEATHER REPORTS RBDS WILL COMPLEMENT THE
EMERGENCE OF DIGITAL RADIO BROADCASTING WHICH CAN DELIVER STATICFREE
CDQUALITY SOUND SEVERAL DIGITAL RADIO SYSTEMS ARE NOW IN DEVELOPMENT AND
THE STANDARD COULD BE IN USE IN THE US BY THE MID1990S OR EARLIER

DENON AMERICA INC HAS TWO CAR MODELS AND A HOME UNIT WITH RBDS ON DISPLAY
AT THE SHOW NEXT MONTH DENON A UNIT OF TOKYOBASED NIPPON COLUMBIA LTD
WILL START SELLING A 450 CAR CASSETTE/RADIO SYSTEM WITH RBDS AND THE RBDS
CAPABILITIES ACCOUNT FOR ONLY 50 OF THE PRICE

RADIO STATIONS CAN HOOK UP DIGITAL ENCODERS FOR SENDING OUT AND CHANGING
MESSAGES AND DATA AT ANY TIME FOR LESS THAN 4000 SO FAR 42 STATIONS
BROADCAST DIGITAL DATA INCLUDING SUCH BIGMARKET OUTLETS AS CHICAGO'S
WLSFM AND NEW YORK'S WHTZFM EARLY THIS YEAR 200 MORE STATIONS ARE
EXPECTED TO USE RBDS LAS VEGAS HAS THE LARGEST CONCENTRATION OF RBDS
STATIONS WITH 10

WITH THE AVERAGE US HOUSEHOLD USING SIX RADIOS INCLUDING CAR AND PORTABLE
MODELS THE POTENTIAL UPGRADE MARKET FOR DIGITAL RADIO TUNERS IS
STAGGERING RBDS DOESN'T HAVE THE GLAMOUR OF A NEW RECORDING TECHNOLOGY
BUT THIS IS GOING TO BE BIG RADIO IS PART OF EVERYONE'S LIFE SAYS ROBERT
HEIBLIM PRESIDENT OF DENON

SONY CORP'S MINIDISC AND PHILIPS ELECTRONICS NV'S DIGITAL COMPACT CASSETTE
DO HAVE THE GLAMOUR OF NEW RECORDING TECHNOLOGIES OF WHICH EXPANDED AND
EVEN SMALLER VERSIONS WERE ON DISPLAY ON THE SHOWROOM FLOOR AND IN PRIVATE
HOTEL SUITES PHILIPS WHICH INTRODUCED HOME DCC PLAYERS BEFORE CHRISTMAS
SHOWED ITS FIRST PORTABLE PRICED AT 550 AND EXPECTED TO REACH STORES LATER
THIS YEAR MATSUSHITA ELECTRIC INDUSTRIAL CO'S PANASONIC SHOWED VERSIONS OF
ITS FIRST PORTABLE DCC PLAYER TO BE AVAILABLE NEXT SEPTEMBER ALSO AT 550

SONY'S MINIDISC THE FIRST RECORDABLE COMPACTDISK FORMAT IS GETTING WIDER
SUPPORT TOO SONY WILL UNVEIL A 980 CARSTEREO VERSION OF ITS MINIDISC FOR
SALE IN FEBRUARY SHARP CORP AND SANYO ELECTRIC CO PLAN TO INTRODUCE
PORTABLE MINIDISC PLAYERS LATER THIS YEAR

BUT THE NEW DIGITAL RECORDING SYSTEMS WHICH ARE STILL IN LIMITED SUPPLY
DON'T YET HAVE ANYTHING NEAR A MASS FOLLOWING SO MANUFACTURERS ARE
UPGRADING THEIR EXISTING PRODUCT LINES

SANYO IS INTRODUCING THE SPORTABLE A 70 WALKMANLIKE PORTABLE AM/FM
CASSETTE PLAYER WITH BUILTIN PEDOMETER AND CALORIE COUNTER RUNNERS CAN
WATCH CALORIES BURN AWAY ON A DISPLAY SCREEN WHILE THE PEDOMETER CALCULATES
EACH POUNDING MILE TO LET THE HEARTY KNOW HOW MUCH GROUND THEY HAVE
COVERED THE SPORTABLE GIVES A SHORT BEEP AT THE ONEMILE MARK TWO BEEPS AT
FIVE MILES AND ANOTHER BEEP WHEN THE CHOSEN TOTAL DISTANCE IS COVERED

OFFBEAT BUT PORTABLE IS A PERSONAL PROJECTION TV FROM VIRTUAL VISION INC
REDMOND WASH VIRTUAL VISION SPORT ALLOWS VIEWERS TO WATCH TELEVISION AS
CLOSE AS IT CAN GET IN THE MIRRORED INNER LENSES OF THE FIVEOUNCE PAIR OF
EYEGLASSES

THE PRODUCT LOOKS LIKE A BIG PAIR OF SUNGLASSES AND IS OUTFITTED WITH A BELT
PACK AND TV TUNER THAT RECEIVE WIRELESS SIGNALS THE SMALL IMAGES FROM
TELEVISION OR EVEN FROM CABLE CAMCORDER OR VCR ARE BOUNCED OFF THE
SPECIAL REFLECTING LENS AND APPEAR TO BE FLOATING IN SPACE ABOUT EIGHT TO 15
FEET IN FRONT OF THE VIEWER THE COMPANY SAYS FUTURE VERSIONS COULD HAVE A
HIGHER CALLING SUCH AS ASSISTING DOCTORS DURING SURGERY

FOR NOW VIRTUAL VISION SUGGESTS THE EYEGLASSES ARE IDEAL FOR FOOTBALL FANS
WHO CAN WATCH INSTANT REPLAYS WHILE VIEWING THE GAME THROUGH THE GLASSES
FROM THE STANDS THE GLASSES WILL BE AVAILABLE IN APRIL FOR SOMEWHERE NEAR
900

OTHER COMPANIES ARE SHRINKING PRODUCTS THAT WERE NEVER MEANT TO BE PORTABLE
NIKKODO CO SHOWED PROBABLY THE SMALLEST KARAOKE MACHINE MORE COMPACT THAN
A VHS TAPE AND WEIGHING LESS THAN ONE POUND KARAOKE NINJA PLUGS INTO A VCR
CD PLAYER OR CDBASED VIDEOGAME MACHINE ASPIRING SINGERS CAN CUSTOMIZE THE
SOUND OF THE SONG TO THE PITCH OF THEIR VOICE AND TO THE ACOUSTICS OF THE
ROOM THEY ARE IN IF THEY WANT TO JUST SING ALONG AT HOME ALONE THEY CAN
HOOK UP THE NINJA TO THE MICROPHONE INPUT ON THEIR CASSETTE DECK AND WAIL

IT COSTS 199 AND COMES WITH TWO MICROPHONE CONNECTORS FOR DUETS

ON A MORE SOBER NOTE EVERSMALLER COMPUTERS ARE VYING TO ORGANIZE OUR
LIVES CASIO COMPUTER CO AND TANDY CORP DEMONSTRATED A NEW GIZMO
CODENAMED ZOOMER THAT WILL BE IN STORES THIS FALL SELLING IN THE
500PLUS RANGE THE MUCH MORE HEAVILY PROMOTED NEWTON FROM APPLE COMPUTER
INC IS INTENDED FOR MIDYEAR ALTHOUGH APPLE IS NOW IS HINTING THAT BUSINESS
USERS RATHER THAN CONSUMERS WILL BE THE INITIAL AUDIENCE IT WILL COST
LESS THAN 1000 WEIGH LESS THAN ONE POUND AND OFFER COMPUTER CALENDAR
PAPERLESS FAX ELECTRONICMAIL RETRIEVAL AND HANDWRITING RECOGNITION

ELSEWHERE IN THE LAND OF THE MINUSCULE AN ATLANTABASED COMPANY IS OFFERING
WHAT MIGHT OTHERWISE BE DUBBED HONEY I BEEPED THE KIDS KBA INC IS
INTRODUCING WORD WATCH A WATCH AND REMOTE PAGER THAT ENABLES PARENTS TO
SEND MESSAGES TO THEIR CHILDREN FROM HOME OR FROM ANY REMOTE LOCATION OVER A
DISTANCE OF AS MUCH AS 15 MILES

MOM AND DAD CAN PAGE JUNIOR FROM A HOME TRANSMITTER THAT CAN BE PROGRAMMED
WITH AS MANY AS FOUR BLUNT MESSAGES CALL HOME COME HOME MEET ME
THAT SCROLL OUT ON THE FACE OF THE CHILD'S WATCH THE BASEUNIT TRANSMITTER
HANDLES AS MANY AS THREE WATCHES AND CARRIES AN INTERNAL CLOCK THAT CAN
SIGNAL A CHILD AT A PREDETERMINED TIME A SEPARATE HANDHELD REMOTE
TRANSMITTER CAN SIGNAL THE ERRANT ADOLESCENT AT SUCH SITES AS A MALL THE
WATCHES GO FOR 40 EACH THE TRANSMITTER FOR 80 KBA IS LOOKING TO LICENSE
THE SYSTEM AND EXPECTS TO HAVE IT IN STORES LATER THIS YEAR 9301080032
930108 WHO'S NEWS FUJI PHOTO FILM CO

FUJI PHOTO FILM CO TOKYO THOMAS E MCGRATH JR A FORMER SENIOR
MARKETING EXECUTIVE FOR EASTMAN KODAK CO IS NOW MARKETING PHOTO PRODUCTS
FOR KODAK'S ARCHRIVAL FUJI PHOTO FILM USA INC A UNIT OF THE TOKYO
COMPANY ON TUESDAY HE WAS NAMED SENIOR VICE PRESIDENT OF THE UNIT'S PHOTO
IMAGING PRODUCTS GROUP MR MCGRATH RETIRED FROM KODAK IN 1990 AS GENERAL
MANAGER OF US SALES AND VICE PRESIDENT OF CONSUMER IMAGING 9301080031
930108 QUADRA LOGIC'S CLINICAL TRIAL

VANCOUVER BRITISH COLUMBIA QUADRA LOGIC TECHNOLOGIES INC SAID IT BEGAN
A CLINICAL TRIAL OF ITS PROPRIETARY LIGHTACTIVATED DRUG BENZOPORPHYRIN
DERIVATIVE AS A POTENTIAL TREATMENT FOR PSORIASIS

THE PHARMACEUTICAL CONCERN SAID THE TRIAL THE FIRST FOR THE DRUG FOR A
DISEASE OTHER THAN CANCER IS BEING CONDUCTED AT MASSACHUSETTS GENERAL
HOSPITAL IN THE TRIAL PATIENTS SUFFERING FROM PSORIASIS WILL BE INJECTED
INTRAVENOUSLY WITH BPD AND EXPOSED TO LIGHT FROM A MEDICAL LASER
9301080030 930108 WHO'S NEWS BIOVASCULAR INC

BIOVASCULAR INC ST PAUL MINN KEMAL SCHANKERELI WAS NAMED TO THE
NEWLY CREATED POSITION OF DIRECTOR OF RESEARCH AND DEVELOPMENT FOR THIS
MEDICAL PRODUCTS COMPANY HE PREVIOUSLY WAS HEAD OF RESEARCH AND DEVELOPMENT
FOR ST JUDE MEDICAL INC ALSO IN ST PAUL 9301080029 930108 LETTERS TO
THE EDITOR STEINBECK NO EXPERT ON MARKETING ORDERS

JOHN STEINBECK WAS AN OUTSTANDING NOVELIST WIDELY RESPECTED AS A CHRONICLER
OF SOCIAL CONDITIONS IN AMERICA HIS CREDENTIALS AS AN AGRICULTURE ECONOMIST
ARE CONSIDERABLY LESS DAUNTING BUT YOUR CHOICE OF STEINBECK AS AN EXPERT
WITNESS IS NOT SURPRISING CONSIDERING THAT YOUR DEC 15 EDITORIAL END OF
THE CITRUS CARTEL SHOWS LITTLE GRASP OF THE HISTORY PURPOSE OR EFFECT OF
THE MARKETING ORDER

THE MARKETING ORDER ESTABLISHES AND MAINTAINS A STEADY FLOW OF ORANGES TO
CONSUMERS AT STABLE AND AFFORDABLE PRICES BOTH CONSUMERS AND PRODUCERS HAVE
BEEN WELL SERVED BY A SYSTEM THAT PREVENTS WILD PRICE FLUCTUATIONS AND
ALTERNATING CYCLES OF GLUT AND SHORTAGE

YOU COMPLAIN THAT A SIGNIFICANT NUMBER OF NAVEL ORANGES ARE EXPORTED EACH
YEAR UNLIKE YOU I CAN FIND NOTHING WRONG WITH EXPORTS OF CALIFORNIA AND
ARIZONA CITRUS THAT EARN THE US 500 MILLION EACH YEAR AT A TIME THAT NEAR
RECORD TRADE DEFICITS ARE SAPPING STRENGTH FROM THE US ECONOMY

AND YOU ARE SIMPLY WRONG WHEN YOU SAY FEDERAL MARKETING ORDERS MANDATE THE
DESTRUCTION OF ORANGES AND THAT ORANGES ARE LEFT TO ROT THE 6500 SUNKIST
FARMERMEMBERS AIM TO SELL THEIR ENTIRE CROP EACH YEAR FRUIT THAT DOES NOT
MEET THE SIZE OR QUALITY STANDARDS NECESSARY FOR MARKETING IN FRESH PRODUCE
CHANNELS IS DIVERTED TO JUICING LESS THAN 2 OF THE NAVEL ORANGE CROP IS
USED FOR FEED SUNKIST AND OTHER GROWERS ALSO MAKE CONTRIBUTIONS OF ORANGES
TO FOOD DISTRIBUTION PROGRAMS FOR THOSE IN NEED

THE CURRENT MARKETING ORDER MECHANISM HAS BENEFITED CONSUMERS AND PRODUCERS
FOR MORE THAN 50 YEARS WITHOUT SUBSIDIES OR OTHER COSTS TO TAXPAYERS BY
SUSPENDING THE PROGRAM THE AGRICULTURE DEPARTMENT WITH YOUR BLESSING HAS
PROVIDED A SOLUTION WHERE NO PROBLEM EXISTS SUSPENSION OF THE MARKETING
ORDER ON THE OTHER HAND WILL DEPRIVE CONSUMERS AND PRODUCERS ALIKE OF THE
BENEFITS OF ORDERLY MARKETING 9301080028 930108 AIR CANADA AND US
PARTNER'S OFFER FOR CONTINENTAL STAKE CLEARS HURDLE  BY ROBERT
JOHNSON AND LAURIE MCGINLEY STAFF REPORTERS OF THE WALL STREET JOURNAL

AIR CANADA AND A US INVESTMENT GROUP MOVED CLOSER TO TAKING A MAJORITY
STAKE IN CONTINENTAL AIRLINES AS THE US DEPARTMENT OF TRANSPORTATION
APPROVED THEIR PROPOSED 450 MILLION INVESTMENT IN THE CONTINENTAL AIRLINES
HOLDINGS UNIT

THE RULING IS AN IMPORTANT MILESTONE SAID AN AIR CANADA SPOKESMAN IN
MONTREAL

THE PLAN WHICH WOULD GIVE AIR CANADA AND AIR PARTNERS LP A COMBINED 55
EQUITY INTEREST IN CONTINENTAL STILL MUST RECEIVE FINAL CONSENT FROM THE
COURT OVERSEEING THE HOUSTONBASED CARRIER'S TWOYEAROLD BANKRUPTCY CASE
PEOPLE CLOSE TO THE CASE EXPECT THE COURT'S APPROVAL IN APRIL

AIR CANADA AND AIR PARTNERS WON THE FEDERAL TRANSPORTATION AGENCY'S
AUTHORIZATION AFTER MODIFYING THEIR INVESTMENT PROPOSAL TO ENSURE IT
COMPLIED WITH FEDERAL LAW THAT LIMITS THE CONTROL FOREIGN CARRIERS MAY EXERT
OVER US AIRLINES THE ORIGINAL AGREEMENT REQUIRED THAT CERTAIN BOARD
DECISIONS BE APPROVED BY A SUPERMAJORITY OR 13 OF THE 18 NEW DIRECTORS
THAT ARRANGEMENT WOULD HAVE GIVEN AIR CANADA WHICH WILL HAVE A THIRD OF THE
SEATS A VETO ON THOSE ISSUES

THE CHANGE IS AN ATTEMPT BY CONTINENTAL TO SIDESTEP SOME OF THE PITFALLS
THAT GROUNDED BRITISH AIRWAYS' ATTEMPT TO BUY NEARLY HALF OF USAIRGROUP INC
THE TRANSPORTATION DEPARTMENT WAS PREPARING TO SHOOT DOWN THAT TRANSACTION
LAST MONTH BECAUSE OF CONCERN OVER THE VOTING CONTROL ISSUE WHEN BRITISH AIR
WITHDREW FROM THE DEAL THE FATE OF THAT TRANSACTION AND CONTINENTAL'S
NEWLYMODIFIED PACT ARE STRONG INDICATORS OF HOW FUTURE FOREIGN INVESTORS
SHOULD BEST STRUCTURE A PROPOSED ACQUISITION OF A US AIRLINE

THE DEPARTMENT ASKED THE INVESTORS TO REMOVE THE SUPERMAJORITY REQUIREMENT
FROM SOME OF THE KIND OF DECISIONS YOU WOULDN'T WANT A FOREIGNER TO
CONTROL SAID A DEPARTMENT OFFICIAL HE CITED CAPITAL EXPENDITURE AS WELL
AS SOME OTHER FINANCIAL MATTERS INVOLVING LOANS AND AT LEAST ONE PERSONNEL
MATTER THE INVESTORS AGREED AND NOW WE ARE CONFIDENT THERE ARE NO CONTROL
PROBLEMS THE OFFICIAL SAID AIR CANADA AND AIR PARTNERS WERE PERMITTED TO
RETAIN THE SUPERMAJORITY REQUIREMENTS FOR SUCH FUNDAMENTAL DECISIONS AS
WHETHER TO TAKE THE COMPANY INTO BANKRUPTCY OR TO GET OUT OF THE AIRLINE
BUSINESS ALTOGETHER

DEPARTMENT OFFICIALS SAID THE CHANGES IN THE AGREEMENT WEREN'T EXTENSIVE
THAT IS BECAUSE THE DEAL NEVER ENVISIONED GIVING AIR CANADA AS MUCH SAY OVER
CONTINENTAL FOR EXAMPLE AS BRITISH AIRWAYS WAS SEEKING IN ITS UNSUCCESSFUL
BID TO BUY ALMOST HALF OF THE USAIR INC UNIT IN THAT 750 MILLION
TRANSACTION WHICH BRITISH AIRWAYS ABANDONED SHORTLY BEFORE CHRISTMAS IN THE
FACE OF CERTAIN REJECTION BY THE TRANSPORTATION DEPARTMENT BRITISH AIRWAYS
WANTED TO REQUIRE SUPERMAJORITY APPROVAL FOR SUCH BASIC DAYTODAY ISSUES AS
FARES AND ROUTE STRUCTURES

THE DOT APPROVAL ALONG WITH ANTICIPATED BANKRUPTCY COURT APPROVAL OF OUR
REORGANIZATION PLAN WILL PERMIT CONTINENTAL TO FINALIZE ITS RESTRUCTURING
SAID ROBERT R FERGUSON III CONTINENTAL'S CHIEF EXECUTIVE OFFICER

A BANKRUPTCY HEARING IS SCHEDULED TODAY IN WILMINGTON DEL TO DETERMINE
WHETHER DISCLOSURE DOCUMENTS FILED FOR REVIEW BY CONTINENTAL'S CREDITORS ARE
ACCEPTABLE TO THEM AND TO THE JUDGE THE COURT IS EXPECTED TO SET A HEARING
DATE PROBABLY WITHIN 90 DAYS TO CONSIDER FINAL CONFIRMATION OF THE
REORGANIZATION PLAN

CONTINENTAL'S AGREEMENT LAST NOVEMBER TO SELL THE MAJORITY STAKE TO AIR
CANADA AND AIR PARTNERS CAME AFTER MONTHS OF LOOKING FOR A SUITABLE PARTNER
UNDER THE PROPOSAL AIR CANADA AND AIR PARTNERS THE INVESTMENT VEHICLE OF
FINANCIERS DAVID BONDERMAN AND JAMES COULTER WOULD ASSUME CONTROL OF 55
OF CONTINENTAL'S EQUITY AND 65 OF THE VOTING STOCK AIR CANADA WOULD GET
24 OF THE VOTING STOCK AND 275 OF THE EQUITY PUTTING ITS CONTINENTAL
STAKE BELOW THE THRESHOLDS FOR FOREIGN OWNERSHIP SET BY FEDERAL LAW 25 FOR
VOTING CONTROL AND 49 FOR EQUITY

FOR LOSSRIDDEN AIR CANADA THE CONTINENTAL INVESTMENT WOULD BE AN AMBITIOUS
STEP IN ITS LONGRUN STRATEGY OF STITCHING TOGETHER A NETWORK OF GLOBAL
ALLIANCES

CHRISTOPHER J CHIPELLO CONTRIBUTED TO THIS ARTICLE 9301080027 930108
STEVENS GRAPHICS GETS 4 ORDERS

FORT WORTH TEXAS STEVENS GRAPHICS CORP SAID IT RECEIVED FOUR ORDERS FOR
PACKAGING AND PRINTING PRODUCTS THAT IT EXPECTS WILL GENERATE REVENUE OF 14
MILLION IN 1993

THE PRINTING PRESS MAKER SAID THE ORDERS INCLUDE THREE PACKAGING SYSTEMS AND
ONE CHECK PRESS PRINTING SYSTEM THE COMPANY DIDN'T IDENTIFY THE PURCHASERS
AND SAID IT WAS TOO EARLY TO DETERMINE THE IMPACT OF THE ORDERS ON ITS
RESULTS

IN 1991 THE COMPANY REPORTED A NET LOSS OF 135 MILLION OR 150 A SHARE
ON REVENUE OF 789 MILLION 9301080026 930108 AUDIO/VIDEO AFFILIATES INC

DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID DECEMBER SAMESTORE SALES
ROSE 45 FROM A YEAR AGO TOTAL SALES AT THE ELECTRONIC PRODUCTS CONCERN
INCREASED 16 TO 473 MILLION FROM 408 MILLION 9301080025 930108
REVIEW & OUTLOOK EDITORIAL DEFYING DEMOCRACY

MORE THAN 200 YEARS AGO THE CITIZENS OF MASSACHUSETTS THREW TEA INTO BOSTON
HARBOR AND REVOLTED AGAINST AN ARROGANT GOVERNMENT THAT IGNORED THEIR
PETITIONS TO JUDGE BY THE TALK OF PEOPLE ON BOSTON STREETS MANY OF THEM
ARE READY FOR ANOTHER REVOLT THE MASSACHUSETTS LEGISLATURE HAS JUST FLOUTED
THE STATE'S CONSTITUTION AND STIFFED AN OVERWHELMING MAJORITY OF PEOPLE WHO
WANTED A VOTE ON TERM LIMITS FOR THEIR LEGISLATORS

WE KNOW POLITICIANS GENERALLY HATE THE IDEA OF TERM LIMITS BUT IT TOOK THIS
WEEK'S BRAZEN POWER PLAY BY MASSACHUSETTS SENATE PRESIDENT WILLIAM BULGER
AND HIS ALLIES TO PROVE JUST HOW FAR THEY WILL GO TO THWART THEM

TERMLIMIT BACKERS HAD TO COLLECT MORE THAN 100000 PETITION SIGNATURES AND
WIN THE BACKING OF 25 OF THE LEGISLATURE TO GET THEIR INITIATIVE ON THE
1994 BALLOT THEY DID BOTH BUT STARTING LAST SPRING SENATOR BULGER BEGAN
TRYING TO RUN OUT THE CLOCK UNTIL THE JANUARY 5 DEADLINE FOR LEGISLATIVE
ACTION ON 11 SEPARATE OCCASIONS HE ASKED THE LEGISLATURE TO CONSIDER
VARIOUS CONSTITUTIONAL AMENDMENTS BUT ALWAYS USED PARLIAMENTARY
SLEIGHTOFHAND TO AVOID A VOTE ON TERM LIMITS FINALLY A FRUSTRATED
GOVERNOR WILLIAM WELD CALLED THE LEGISLATURE BACK INTO SESSION ON MONDAY AND
ASKED FOR AN UPORDOWN VOTE THE STATE'S CONSTITUTION MAKES IT CLEAR THAT
THE LEGISLATURE IS EXPECTED TO ACT ON ANY INITIATIVE PROPOSED BY THE PEOPLE

INSTEAD SENATOR BULGER SUDDENLY ADJOURNED THE LEGISLATURE ALL OF THE
SIGNATURES ARE NOW INVALID AND THERE WILL BE NO VOTE ON TERM LIMITS BUT
THIS TIME THE POLS MAY HAVE GONE TOO FAR THE PUBLIC AND MASSACHUSETTS MEDIA
ARE IN AN UPROAR THE ANGER COULD BUILD TO LEVELS NOT SEEN SINCE NEW JERSEY
VOTERS TOSSED OUT THE LEGISLATORS WHO VOTED FOR GOVERNOR FLORIO'S HIGHHANDED
TAX HIKE

TERMLIMIT BACKERS IN MASSACHUSETTS HAVEN'T GIVEN UP THEY ARE ALREADY
PLANNING AN ALTERNATIVE INITIATIVE THAT WON'T REQUIRE LEGISLATIVE ACTION IT
WOULD SIMPLY CUT OFF THE PAY PERKS AND PENSIONS OF LEGISLATORS WHO STAYED
LONGER THAN SIX OR EIGHT YEARS IN OFFICE IT TURNS OUT THERE MAY BE MORE
THAN ONE WAY FOR VOTERS TO END THE DISEASE OF POLITICAL CAREERISM
9301080024 930108 WHO'S NEWS ROHR CHIEF RETIRES DIRECTOR ASSUMES 
DUTIES IN INTERIM  BY SARAH LUBMAN STAFF REPORTER OF THE WALL
STREET JOURNAL

ROHR INC SAID ROBERT H GOLDSMITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER
TOOK EARLY RETIREMENT

MR GOLDSMITH 62 YEARS OLD WAS SUCCEEDED ON AN INTERIM BASIS BY BOARD
MEMBER JAMES J KERLEY UNTIL A NEWLY FORMED COMMITTEE FINDS A PERMANENT
SUCCESSOR THE COMPANY SAID MR KERLEY 70 FORMERLY WAS VICE CHAIRMAN AND
CHIEF FINANCIAL OFFICER OF EMERSON ELECTRIC CO

MR GOLDSMITH WAS CHAIRMAN AND CHIEF EXECUTIVE OF THE CHULA VISTA CALIF
AEROSPACE COMPANY SINCE JANUARY 1990 HE WILL STAY ON WITH ROHR AS A
CONSULTANT FOR THE NEXT SIX MONTHS AND WILL REMAIN A DIRECTOR UNTIL HIS
TERM EXPIRES IN DECEMBER THE COMPANY SAID

WE HAVE BEEN SEARCHING FOR A PRESIDENT SINCE EARLY 1992 AND I DECIDED WE
COULD ATTRACT THE BESTQUALIFIED INDIVIDUAL IF THE POSITIONS OF CHAIRMAN AND
CHIEF EXECUTIVE OFFICER WERE OPEN IMMEDIATELY MR GOLDSMITH SAID
ACCORDINGLY I DECIDED TO STEP ASIDE IN ADVANCE RATHER THAN CONTINUE ON
WHILE A NEW PERSON BEGAN TAKING OVER MY RESPONSIBILITIES

MR GOLDSMITH'S DEPARTURE FOLLOWS A SUCCESSION OF PROBLEMS AT ROHR WHICH
HAS BEEN BATTERED BY THE DOWNTURN IN THE COMMERCIAL AIRCRAFT INDUSTRY THE
AIRCRAFTPARTS MAKER ANNOUNCED LAST MONTH THAT IT PLANS TO CUT 2000 JOBS
OVER THE NEXT TWO TO THREE YEARS DUE TO ORDER CUTBACKS IN ADDITION THE
COMPANY'S CHIEF FINANCIAL OFFICER QUIT IN OCTOBER AFTER JUST SIX MONTHS ON
THE JOB A MONTH LATER TWO FORMER EMPLOYEES WON A WRONGFULTERMINATION CASE
AGAINST ROHR WITH DAMAGES AS HIGH AS 59 MILLION

FURTHERMORE FOR NEARLY A YEAR ROHR HAS BEEN EXPECTING AN INDICTMENT IN A
FEDERAL INVESTIGATION OF MILITARY AIRCRAFT PARTTESTING PRACTICES AT ONE OF
ITS PLANTS AND THE COMPANY IS INVOLVED IN A COSTLY DISPUTE WITH THE AIR
FORCE OVER A CONTRACT TO MAKE SPARE ENGINE PYLONS FOR THE C5 MILITARY
TRANSPORT

IN MAY STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ROHR CITING
DISAPPOINTING OPERATING PERFORMANCE

THERE HAVE BEEN A NUMBER OF THINGS OVER THE LAST YEAR OR SO THAT HAVEN'T
BEEN GOOD FOR THE COMPANY SAID JERRY CANTWELL AN ANALYST WHO FOLLOWS ROHR
AT WERTHEIM SCHRODER ADD THEM ALL UP PUT THEM IN THE CONTEXT OF A POOR
INDUSTRY ENVIRONMENT AND YOU HAVE A SITUATION WHERE THE BOARD IS WILLING TO
REPLACE THE TOP GUY

MR GOLDSMITH DENIED SPECULATION THAT HE HAD BEEN FORCED OUT THIS WAS MY
PLAN THE BOARD DIDN'T ASK ME TO RESIGN HE SAID MR GOLDSMITH ADDED THAT
HE DIDN'T PLAN TO RETIRE AND THAT HE WOULD LOOK FOR ANOTHER JOB

IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY ROHR SHARES
WERE QUOTED AT 1175 DOWN 375 CENTS THE ANNOUNCEMENT WAS MADE AFTER THE
CLOSE OF THE MARKETSTAR 9301080023 930108 POLITICS & POLICY CLINTON
FACING HARSH BUDGET REALITIES FINDS THAT HE MUST ABANDON SOME CAMPAIGN
VOWS  BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON BILL CLINTON IS PREPARING TO WALK AWAY FROM SOME OF HIS
CAMPAIGN PROMISES

AS A CANDIDATE MR CLINTON PREACHED THE IMPORTANCE OF PUBLIC INVESTMENT
AND SAID HE WOULD INCREASE FEDERAL SPENDING ON INFRASTRUCTURE BY 20 BILLION
FOR EACH OF THE THE NEXT FOUR YEARS

THIS INFRASTRUCTURE SPENDING ON EVERYTHING FROM HIGHWAYS TO
HIGHTECHNOLOGY FIBER OPTICS WAS A CENTERPIECE OF THE CLINTON PLAN TO
CREATE JOBS AND IMPROVE THE STANDARD OF LIVING

BUT BECAUSE MR CLINTON FACES A MUCH BIGGER BUDGET DEFICIT THAN ANTICIPATED
THE BIGGEST NUMBER ON THE OPTIONS THAT HIS TRANSITION STAFF HAS PUT BEFORE
HIM IS SHY OF THE 20 BILLION GOAL AND SOME OF HIS ADVISERS EXPECT HIM TO
SETTLE CLOSER TO 10 BILLION

SIMPLY PUT MR CLINTON CANNOT KEEP ALL HIS CAMPAIGN PLEDGES WHICH CALL FOR
HALVING THE DEFICIT AND INCREASING FEDERAL SPENDING AND CUTTING TAXES ON THE
MIDDLE CLASS AT A LENGTHY MEETING AT THE GOVERNOR'S MANSION IN LITTLE ROCK
ARK YESTERDAY MR CLINTON'S FIRST WORKING SESSION ON THE BUDGET WITH HIS
TOP ECONOMIC TEAM THE PRESIDENTELECT WAS TOLD AS MUCH

IN PUBLIC MR CLINTON'S AIDES CHOOSE THEIR WORDS VERY CAREFULLY THE
GOVERNOR STANDS BY HIS CAMPAIGN COMMITMENTS HIS COMMUNICATIONS DIRECTOR
GEORGE STEPHANOPOLOUS SAID THIS WEEK BUT WE ARE REVIEWING ALL OF THESE
OPTIONS RIGHT NOW AND WE WILL ANNOUNCE HIS ECONOMIC PLAN SHORTLY

PRIVATELY CLINTON AIDES ACKNOWLEDGE THE INEVITABLE DURING THE CAMPAIGN
FOR INSTANCE MR CLINTON TALKED OF CUTTING THE DEFICIT IN HALF BY FISCAL
1996 WHICH BEGINS OCT 1 1995 BUT WITH THE DEFICIT OUTLOOK DETERIORATING
SOME OF HIS AIDES WANT TO AIM FOR 1997 OR 1998 AND NONE ARE PUBLICLY
REPEATING THE VOW OF CUTTING THE DEFICIT IN HALF

THE CLINTON TEAM IS ALSO WAFFLING ON SOME OTHER CAMPAIGN PLEDGES MR
CLINTON DECLARED DURING THE CAMPAIGN THAT HE WOULD FORCE EMPLOYERS TO SPEND
15 OF THEIR PAYROLL ON TRAINING WORKERS BUT LABOR SECRETARYDESIGNATE
ROBERT REICH SAYS HE'LL LOOK FOR OTHER WAYS TO REACH THAT GOAL BEFORE
PROPOSING A FIRM LEGAL REQUIREMENT

SIMILARLY ALTHOUGH MR CLINTON PROMISED 170 MANUFACTURING CENTERS TO
DISSEMINATE MANUFACTURING EXPERTISE TO SMALL AND MEDIUMSIZED BUSINESSES
HIS TEAM IS NOW EMBRACING A MORE LIMITED PLAN DRAFTED BY THE BUSH COMMERCE
DEPARTMENT THE BUSH PLAN WOULD CREATE ONLY ABOUT 30 SUCH CENTERS WITH
140 SMALL SATELLITE OFFICES AND IT ISN'T CLEAR HOW QUICKLY EVEN THIS
PLAN WOULD BE IMPLEMENTED

THE BIGGEST THREAT TO MR CLINTON'S CAMPAIGN PROMISES IS THE DEFICIT
PERHAPS HIS TOP ECONOMIC AIDES SHOULDN'T BE SURPRISED BY THE SIZE OF THE
DEFICIT THEY ARE INHERITING BUT THEY INSIST THAT THEY ARE AND SAY IT
WOULD BE IRRESPONSIBLE NOT TO ADJUST THE CLINTON PROGRAM TO REFLECT THE
CHANGED CIRCUMSTANCES

USING FISCAL 1997 WHICH BEGINS A MONTH BEFORE THE 1996 ELECTIONS AS THEIR
TARGET BECAUSE IT IS THE FINAL YEAR OF MR CLINTON'S TERM HIS AIDES SAY
THE DEFICIT PROJECTIONS ARE ROUGHLY 56 BILLION WORSE THAN THEY ANTICIPATED
WITH THE DEFENSESPENDING CUTS THAT PRESIDENT BUSH HAS ALREADY PROPOSED THE
CLINTON TEAM HAD FIGURED THEY WERE STARTING FROM A 1997 DEFICIT OF 299
BILLION BEFORE IMPLEMENTING ANY OF THEIR OWN POLICIES THE STARTING POINT IS
NOW UP TO 355 BILLION THEY SAY

PROJECTIONS RELEASED THIS WEEK BY RICHARD DARMAN MR BUSH'S BUDGET
DIRECTOR UNDERSTATE THE DIMENSIONS OF THE DEFICIT MR CLINTON FACES
ALTHOUGH THE FIGURES ARE BILLED AS SHOWING THE DEFICIT UNDER CURRENT
POLICIES THEY ACTUALLY ASSUME THAT THE CURRENT LEVEL OF SERVICES AND
DEFENSE SPENDING WON'T BE MAINTAINED RESPONDING TO MR DARMAN'S CHARGE THAT
MR CLINTON'S MATH DOES NOT WORK THE PRESIDENTELECT TOLD REPORTERS I
THINK MR DARMAN HAS PROVED HIMSELF AN EXPERT ON MATH NOT ADDING UP

EVEN IF THE DEFICIT OUTLOOK HADN'T CHANGED MR CLINTON WOULD HAVE HAD A
TOUGH TIME STICKING TO THE PLAN LAID OUT LAST SUMMER IN HIS CAMPAIGN
MANIFESTO PUTTING PEOPLE FIRST BECAUSE SOME OF THE ESTIMATES WERE
EXAGGERATED

THE LATEST PROJECTIONS MAKE THINGS WORSE EVEN IF HE WERE TO HALVE HIS
FOURYEAR PLAN TO INCREASE SPENDING ON VARIOUS GOVERNMENT PROGRAMS BY 220
BILLION AND DROP HIS PROMISED MIDDLECLASS TAX CUT ALTOGETHER MR CLINTON
WOULD HAVE TO PROPOSE MEASURES THAT GO WELL BEYOND THOSE OUTLINED IN THE
CAMPAIGN PERHAPS NEW TAX INCREASES OR DEEPER CUTS IN DEFENSE SPENDING 
IF HE IS TO SHRINK THE DEFICIT SIGNIFICANTLY

THERE'S NO QUESTION WE'LL HURT SOME PEOPLE SAYS ONE CLINTON AIDE THE
ISSUE IS DO YOU HAVE TO DO THE REALLY REALLY UGLY STUFF SUCH AS A BIG
TAX INCREASE OR STIFF CUTS IN GOVERNMENT BENEFITS

THE TRANSITION STAFF HAS FILLED BINDERS WITH OPTIONS BUT IT NOW FALLS TO
MR CLINTON TO DECIDE THE BIG ISSUE IS HOW MUCH TO CUT THE DEFICIT AND HOW
MUCH TO INCREASE GOVERNMENT INVESTMENT SPENDING WHICH RANGES FROM THE HEAD
START PROGRAM FOR PRESCHOOLERS TO SEWAGETREATMENT PLANTS HE MUST ALSO
DECIDE WHETHER THE ECONOMY NEEDS A SMALL DOSE OF FISCAL STIMULUS OR NOT

AIDES SAID YESTERDAY'S MEETING CAREFULLY STRUCTURED TO TRY TO PROVIDE THE
PRESIDENTELECT WITH INFORMATION RATHER THAN A DEBATE AMONG HIS ADVISERS
MARKS THE BEGINNING OF THE DECISIONMAKING MR CLINTON'S AIDES EXPECT HIM
TO GIVE THEM SOME DIRECTION ON KEY ISSUES WITHIN A FEW DAYS

BESIDES TREASURY SECRETARYDESIGNATE LLOYD BENTSEN BUDGET
DIRECTORDESIGNATE LEON PANETTA AND OTHER ECONOMIC OFFICIALS WHO HAVE
ALREADY BEEN ANNOUNCED THE 15 ADVISERS AT THE SESSION INCLUDED LONGTIME
CLINTON FRIEND IRA MAGAZINER WHO IS SAID TO BE IN LINE FOR A WHITE HOUSE
JOB LAWRENCE SUMMERS THE WORLD BANK ECONOMIST WHO HAS BEEN PICKED FOR A
TOP JOB AT THE TREASURY AND PRINCETON ECONOMIST ALAN BLINDER WHO IS TO BE
ON THE COUNCIL OF ECONOMIC ADVISERS

AFTER THE MEETING GENE SPERLING A TOP AIDE TO NATIONAL ECONOMIC ADVISER
ROBERT RUBIN SAID THE GOAL WAS TO OUTLINE A BROAD ECONOMIC PICTURE TO THE
PRESIDENTELECT IT WAS A VERY POSITIVE MEETING MR SPERLING SAID BUT
WE HAVE A LOT OF WORK TO DO

NEARLY ALL MR CLINTON'S ADVISERS ADVOCATE REDUCING THE DEFICIT BUT THEY
DIFFER SHARPLY ON HOW MUCH AND HOW QUICKLY SOME INCLUDING MR PANETTA AND
HIS DEPUTY ALICE RIVLIN SEE DEFICIT REDUCTION AS THE BEST WAY TO ASSURE A
HEALTHY ECONOMY IN THE FUTURE BUT OTHERS AMONG THEM MR REICH EMPHASIZE
THE IMPORTANCE OF INCREASING SPENDING ON INVESTMENT 9301080022 930108
TECHNOLOGY CRAY RESEARCH TO POST YEARLY LOSS DUE TO SALE'S DELAY 
 BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL

CRAY RESEARCH INC SAID A CUSTOMER'S DELAY IN ACCEPTING A LARGE
SUPERCOMPUTER WILL CAUSE THE COMPANY TO REPORT ITS FIRST YEARLY LOSS

CRAY THE WORLD'S LEADING SUPERCOMPUTER MANUFACTURER DIDN'T SPECIFY THE
AMOUNT OF THE LOSS ANALYSTS HOWEVER SAY IT ISN'T LIKELY TO EXCEED A FEW
MILLION DOLLARS STILL COMING JUST TWO MONTHS AFTER THE EAGAN MINN
COMPANY PREDICTED MARGINAL PROFIT THE ANNOUNCEMENT UNDERSCORES HOW
GRUELING 1992 WAS FOR THE ONCE HIGHFLYING INDUSTRY

AS THE RECESSION DECIMATED CAPITALSPENDING BUDGETS AND CONFUSION REIGNED
ABOUT THE DIRECTION OF HIGHPERFORMANCE COMPUTING TECHNOLOGY MANY
ONCERELIABLE CUSTOMERS SUCH AS GOVERNMENT RESEARCH AGENCIES POSTPONED
BIGTICKET PURCHASES

IN CRAY'S CASE THE PROBLEM WAS COMPOUNDED BY THE COMPANY'S CONSERVATIVE
ACCOUNTING APPROACH BECAUSE ITS TOPOFTHELINE SYSTEMS ARE SO EXOTIC AND
TAKE A GOOD DEAL OF TIME TO INSTALL AND TEST AT CUSTOMER SITES CRAY DOESN'T
RECORD REVENUE FROM SALES UNTIL THE CUSTOMER IS SATISFIED WITH THE
COMPUTER'S PERFORMANCE A PROCESS THAT CAN TAKE MONTHS FROM START TO FINISH

IN THE LATEST EXAMPLE A CUSTOMER PUSHED THE ACCEPTANCE OF A 32 MILLION
CRAY YMP C90 FROM THE END OF DECEMBER TO JAN 2 CAUSING THE SALE TO BE
RECORDED IN THE 1993 FIRST QUARTER ALTHOUGH CRAY DECLINED TO NAME THE
CUSTOMER ANALYSTS SAID THEY BELIEVE IT WAS THE KNOLLS ATOMIC POWER LAB IN
SCHENECTADY NY WHICH IS PART OF THE DEPARTMENT OF ENERGY'S LAB COMPLEX

A SPOKESMAN FOR GENERAL ELECTRIC CO WHICH OPERATES KNOLLS FOR THE DOE
CONFIRMED THAT THE LAB ACCEPTED A CRAY SYSTEM JAN 2 AFTER COMPLETION OF A
PREDESIGNATED ACCEPTANCE TEST HE SAID KNOLLS DIDN'T DELAY ACCEPTANCE OF
THE SYSTEM BUT DECLINED TO ELABORATE

IN 1991 CRAY REPORTED NET INCOME OF 113 MILLION OR 415 A SHARE ON
REVENUE OF 8625 MILLION BUT ANEMIC REVENUE GROWTH COUPLED WITH PLUNGING
PROFIT MARGINS CAUSED NET INCOME TO FALL 78 IN THE FIRST NINE MONTHS OF
1992 TO 117 MILLION OR 44 CENTS A SHARE FROM YEAREARLIER NET OF 534
MILLION OR 2 A SHARE IN THE FOURTH QUARTER THE COMPANY ANNOUNCED IT WAS
LAYING OFF ABOUT 12 OF THE WORK FORCE LEADING TO A 40 MILLION CHARGE

IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY CRAY
RESEARCH SHARES WERE QUOTED AT 2325 DOWN 375 CENTS

SEPARATELY CRAY SAID YESTERDAY THAT THE DOE'S BETTIS LABORATORY WEST
MIFFLIN PA PLACED AN ORDER FOR A YMP C90 TERMS WEREN'T DISCLOSED
BETTIS IS A GOVERNMENTOWED LAB OPERATED BY WESTINGHOUSE ELECTRIC CORP FOR
THE US NAVAL NUCLEAR PROPULSION PROGRAM 9301080021 930108 WHO'S NEWS 
SILICON GENERAL INC

SILICON GENERAL INC SAN JOSE CALIF BRAD WHITNEY FOMERLY STANDARD
LINEAR PROJECT MANAGER FOR TEXAS INSTRUMENTS INC WAS NAMED PRESIDENT AND
CHIEF OPERATING OFFICER OF THIS COMPUTER CONCERN'S SEMICONDUCTOR DIVISION
MR WHITNEY 38 YEARS OLD SUCCEEDS DAN RASDALE WHO REMAINS CHAIRMAN AND
CHIEF EXECUTIVE OF SILICON GENERAL MR RASDALE HAD BEEN ACTING HEAD OF THE
SEMICONDUCTOR DIVISION FOR ABOUT A YEAR 9301080020 930108 HILO
AUTOMOTIVE SALES CLIMB

HOUSTON HILO AUTOMOTIVE INC SAID DECEMBER SALES ROSE 24 TO 14 MILLION
FROM 114 MILLION FOR THE SAME MONTH A YEAR EARLIER SALES AT STORES OPEN
FOR MORE THAN ONE YEAR INCREASED 13

THE AUTOMOTIVE PARTS RETAILER SAID SALES FOR ALL OF 1992 INCREASED 20 TO
1872 MILLION FROM 1557 MILLION IN 1991 IN STORES OPEN MORE THAN ONE
YEAR SALES ROSE 123 9301080019 930108 BUSINESS BRIEF EAGLE HARDWARE
& GARDEN CO SEC INITIATES AN INQUIRY OF THIRDQUARTER CHARGE

THE SECURITIES AND EXCHANGE COMMISSION HAS BEGUN AN INFORMAL INQUIRY OF
EAGLE HARDWARE & GARDEN CO'S RECENT SURPRISE DISCLOSURE OF COSTLY INVENTORY
PROBLEMS COMPANY PRESIDENT AND CHIEF OPERATING OFFICER RICHARD TAKATA SAID

THE TUKWILA WASH OPERATOR OF HOME IMPROVEMENT CENTERS LAST MONTH REPORTED
THAT NET INCOME FOR THE THIRD QUARTER ENDED OCT 30 FELL 10 TO 372079 OR
TWO CENTS A SHARE WELL BELOW ANALYSTS' EXPECTATION SALES TOTALED 40
MILLION MORE THAN DOUBLE YEARAGO SALES OF 162 MILLION

THE COMPANY ALSO REPORTED A 24 MILLION CHARGE RELATED TO UNSPECIFIED
INVENTORY SHRINKAGE THE ANNOUNCEMENT DROVE THE COMPANY'S STOCK DOWN 20
IN ONE DAY IN OVERTHECOUNTER TRADING EAGLE STOCK FELL 2125 TO 21125
YESTERDAY

WE'RE COOPERATING FULLY MR TAKATA SAID WE DON'T EXPECT THIS TO BE A
LENGTHY IQUIRY

THE SEC COULDN'T BE REACHED 9301080018 930108 GREECE'S CPI INCREASES 13

ATHENS GREECE'S CONSUMER PRICE INDEX FOR DECEMBER 1992 ROSE 13 FROM THE
PREVIOUS MONTH BUT THE ANNUAL INFLATION RATE DROPPED TO 144 THE
GOVERNMENT SAID

ANNUAL INFLATION HAD BEEN RUNNING AT 15 IN NOVEMBER AND 159 IN OCTOBER
THE 1991 INFLATION RATE WAS 18 AND IN 1990 IT WAS 229

THE NATIONAL STATISTICAL SERVICE SAID THE CPI RISE WAS BECAUSE OF AN
INCREASE IN HOUSE RENTS WATER BILLS FOOD AND CARS

GREECE'S CONSERVATIVE GOVERNMENT HAS BEEN IMPLEMENTING A STRICT AUSTERITY
POLICY FOR MORE THAN TWO YEARS IT HOPES TO BRING INFLATION BELOW 10 BY THE
END OF 1993 9301080017 930108 BUSINESS BRIEF MONSANTO TO BUY CHEVRON'S
ORTHO LINE RUMOR OF ACQUISITION HITS STOCK EARLY

MONSANTO CO FOLLOWING WEEKS OF RUMORS SAID IT SIGNED A LETTER OF INTENT
TO BUY THE ORTHO LAWN AND GARDEN PRODUCTS BUSINESS OF CHEVRON CORP'S
CHEMICAL SUBSIDIARY FOR ABOUT 400 MILLION

SPECULATION THAT SUCH A DEAL WAS IMMINENT APPARENTLY HELPED PUSH MONSANTO'S
STOCK PRICE DOWN 2 BY EARLY AFTERNOON YESTERDAY EVEN THOUGH THE PROPOSAL
WASN'T ANNOUNCED UNTIL AFTER THE MARKET HAD CLOSED INVESTMENT ANALYSTS
SAID MONSANTO STOCK CLOSED AT 53125 DOWN 2125 IN NEW YORK STOCK
EXCHANGE TRADING

ONE SECURITIES ANALYST WHO ASKED NOT TO BE NAMED ATTRIBUTED THE SELLOFF TO
MUTUAL FUND MANAGERS AND OTHER INSTITUTIONAL INVESTORS IN BOSTON WHO HAD MET
SEPARATELY WITH A MONSANTO INVESTOR RELATIONS OFFICIAL THIS WEEK THE
ANALYST SAID THAT THE MONEY MANAGERS APPARENTLY CONCLUDED FROM THE MEETINGS
THAT MONSANTO WAS SLOWING ITS REPURCHASE OF 12 MILLION SHARES WHICH HAS
HELPED SUPPORT MONSANTO'S SHARE PRICE RECENTLY AND WAS WEIGHING AN
ACQUISITION

A NICHOLAS FILIPPELLO MONSANTO CHIEF ECONOMIST AND SPOKESMAN CONFIRMED
THAT AN INVESTOR RELATIONS OFFICIAL HAD MET WITH THE MONEY MANAGERS IN
BOSTON AND THAT THE RATE OF SHARE REPURCHASES STARTED IN LAST YEAR'S
FOURTH QUARTER HAD SLOWED IN RECENT WEEKS BUT HE SAID THE COMPANY OFFICIAL
HADN'T DISCLOSED ANY INSIDE INFORMATION BY HINTING IN ANY WAY THAT AN
ACQUISITION WAS IN THE OFFING HE ADDED THAT MONSANTO HAS STEPPED UP ITS
SHARE REPURCHASES THIS WEEK HE DECLINED TO COMMENT FURTHER

THE ORTHO PURCHASE WOULD EXPAND MONSANTO'S PRESENCE IN THE BACKYARD BUG AND
WEED KILLING BUSINESS THE ST LOUIS CHEMICAL COMPANY'S PRODUCTS INCLUDE
ROUNDUP HERBICIDE AND THE GREENSWEEP LINE OF LAWN PESTICIDES AND
FERTILIZERS

THE PROPOSED PRICE FOR ORTHO INCLUDES AN UNSPECIFIED AMOUNT OF WORKING
CAPITAL EMPLOYED BY THE BUSINESS THE COMPANIES SAID MONSANTO AND CHEVRON
BASED IN SAN FRANCISCO SAID THE SALE IS EXPECTED TO BE COMPLETED DURING THE
CURRENT QUARTER AND RESULT IN A SIGNIFICANT GAIN FOR CHEVRON ORTHO
BASED IN SAN RAMON CALIF HAS ANNUAL SALES OF ABOUT 250 MILLION AND
EMPLOYS ABOUT 580 PEOPLE 9301080016 930108 HECHINGER DECEMBER SALES RISE

LANDOVER MD HECHINGER CO SAID DECEMBER SALES ROSE 19 TO 1632
MILLION FROM THE YEAREARLIER 1371 MILLION COMPARABLESTORE SALES ROSE
8

THE HOME IMPROVEMENT SPECIALTY RETAILER ALSO SAID IT PLANS TO ENTER THE
LITTLE ROCK ARK MARKET WITH TWO HOME QUARTERS WAREHOUSE STORES THE
COMPANY OPERATES 124 HOME CENTERS IN 18 STATES AND THE DISTRICT OF COLUMBIA
9301080015 930108 USAIR TRAFFIC DECLINES

ARLINGTON VA USAIR A UNIT OF USAIR GROUP INC SAID ITS DECEMBER
TRAFFIC FELL 68 TO 275 BILLION REVENUE PASSENGER MILES FROM 295 BILLION
A YEAR EARLIER

A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE LOAD
FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED FELL TO 556 FROM 612

FOR ALL OF 1992 THE AIRLINE SAID IT FLEW 351 BILLION REVENUE PASSENGER
MILES UP 29 FROM 341 BILLION A YEAR EARLIER THE LOAD FACTOR WAS 588
COMPARED WITH 586 9301080013 930108 THE AMERICAS IS CUBA STEALING
PAGES FROM CHINA'S DEVELOPMENT PROGRAM  BY MATIAS F TRAVIESODIAZ

THERE ARE RECURRING STORIES IN THE PRESS ABOUT CUBA'S ATTEMPTS TO REVIVE ITS
MORIBUND ECONOMY BY BRINGING IN FOREIGN INVESTMENT AT THE SAME TIME
COMMUNIST CHINA'S ABILITY TO ATTRACT FOREIGN INVESTMENT THROUGH ITS OPENING
OF MARKETS INVITES COMPARISONS WITH THE NEW CUBAN MODEL DOES THE SUCCESS OF
THE CHINESE FOREIGN INVESTMENT EXPERIMENT SUGGEST THAT CUBA TOO WILL BE
ABLE TO WEATHER ITS CURRENT DIFFICULTIES

CHINA BEGAN ITS PROGRAM TO ATTRACT FOREIGN INVESTMENT IN THE LATE 1970S AND
EARLY 1980S BY CREATING SPECIAL ECONOMIC ZONES THAT CONCENTRATED
OPPORTUNITIES FOR FOREIGN INVESTMENT AND PROVIDED MATERIAL LABOR AND TAX
INCENTIVES CHINA ALSO GAVE SPECIAL INCENTIVES TO FOREIGN COMPANIES TO SET
UP MANUFACTURING FACILITIES IN 14 OPEN CITIES IN COASTAL AREAS WITH AN
EMPHASIS ON THOSE THAT WOULD INTRODUCE ADVANCED TECHNOLOGIES INTO THE
COUNTRY

THIS DISCIPLINED MARKET LIBERALIZATION HAS MET WITH UNDENIABLE SUCCESS
DESPITE PERIODS OF RETRENCHMENT IN 19861987 PRIMARILY CAUSED BY DOMESTIC
INFLATION AND 1989 IN THE WAKE OF THE TIANANMEN SQUARE MASSACRE FOREIGN
INVESTMENT HAS SHOWN DRAMATIC GROWTH IN 1991 ALONE 11 BILLION WAS
COMMITTED BY FOREIGN INVESTORS TO ENTERPRISES IN CHINA NOT ONLY FROM HONG
KONG AND TAIWAN THE NEAREST NEIGHBORS AND MOST SIZABLE INVESTORS BUT
ALSO FROM JAPAN THE US EUROPE AND SOUTH AMERICA CHINA'S PRIVATESECTOR
INDUSTRIAL OUTPUT FOR 1992 IS EXPECTED TO SURPASS THAT OF STATEOWNED
ENTERPRISES FOR THE FIRST TIME SINCE COMMUNIST RULE BEGAN TWO GENERATIONS
AGO

ON THE SURFACE CUBA SEEMS TO BE REFORMING ITS ECONOMIC STRUCTURE ALONG
CHINA'S MODEL LAST JULY CUBA'S NATIONAL ASSEMBLY REVISED THE COUNTRY'S
CONSTITUTION TO FACILITATE FOREIGN INVESTMENT THE CHANGES INCLUDED
PERMISSION FOR THE TRANSFER OF STATE PROPERTY TO FOREIGN INDIVIDUALS AND
ENTERPRISES CREATION OF AUTONOMOUS ENTERPRISES REGULATED BUT NOT MANAGED
BY THE STATE AND PERMISSION TO EXPORT AND IMPORT WITHOUT PRIOR GOVERNMENT
CLEARANCE THESE MODEST MEASURES ARE INTENDED TO REASSURE FOREIGN INVESTORS
THAT THEY WILL BE ABLE TO CONTROL THEIR INVESTMENTS AND REMIT PROFITS
ABROAD

NEVERTHELESS CUBA HAS FAILED TO CREATE THE LEGISLATIVE AND REGULATORY
FRAMEWORK THAT PROTECTS INVESTORS FROM GOVERNMENTAL ABUSE CUBA HAS BUT A
SINGLE JOINTVENTURE LAW AND SKETCHY RULES FOR ITS IMPLEMENTATION THESE
DOCUMENTS ARE FILLED WITH AMBIGUITIES AND VEST A GREAT DEAL OF DISCRETION IN
THE GOVERNMENT AT ALL STAGES OF A JOINT VENTURE ENABLING THE AUTHORITIES TO
TAKE ARBITRARY ACTIONS TO THE DETRIMENT OF THE INVESTOR

THE RISKS POSED BY THIS LOOSE FRAMEWORK WERE DEMONSTRATED A FEW MONTHS AGO
WHEN A SPANISH ENTREPRENEUR PREVIOUSLY HELD UP AS AN EXAMPLE OF A
SUCCESSFUL CUBANFOREIGN VENTURE WAS FORCED TO SELL HIS INTEREST IN THE
VENTURE BACK TO THE CUBAN STATE APPARENTLY BECAUSE HIS BUSINESS A
NIGHTCLUB HAD BEEN TOO SUCCESSFUL AS LONG AS SUCH AN UNPREDICTABLE
ENVIRONMENT EXISTS IT IS UNLIKELY THAT MAJOR INVESTORS WILL BE WILLING TO
MOVE INTO CUBA

IN FACT VERY FEW FOREIGN CAPITALISTS HAVE RESPONDED TO CUBA'S ENTREATIES
ACKNOWLEDGED CARLOS LAGE CUBA'S EXECUTIVE SECRETARY OF THE COUNCIL OF
MINISTERS IN A NOVEMBER TELEVISION INTERVIEW THE JOINT VENTURE PROGRAM IS
GOING SLOWLY ACCORDING TO MR LAGE BUT HE BLAMED IMPERIALIST PRESSURES
PLACED ON POTENTIAL INVESTORS AS THE CAUSE

IT'S NOT SIMPLY A LACK OF CAPITAL THAT'S HOLDING UP CUBAN DEVELOPMENT BUT
ALSO THE STRATEGIC PLACEMENT OF THE MEAGER CAPITAL THAT DOES FLOW IN CHINA
FOCUSED ITS FOREIGN INVESTMENT PROGRAM ON THE MANUFACTURING SECTOR BY
CONTRAST CUBA HAS CHOSEN TOURISM AND EXTRACTIVE INDUSTRIES SUCH AS OIL AND
MINERALS IN THE FORM OF RISK CONTRACTS AS THE MAIN AREAS IN WHICH FOREIGN
INVESTMENT WILL BE ALLOWED IT HAS DONE LITTLE TO ENCOURAGE FOREIGNERS TO
INVEST IN BASIC INDUSTRIES AND SERVICES AS A RESULT FOREIGN INVESTMENT IN
CUBA MAY AT BEST PRODUCE A LIMITED SHORTTERM CAPITAL INFUSION BUT WILL
NOT LEAD TO LONGTERM GROWTH OR TO THE MODERNIZATION OF THE COUNTRY'S
OBSOLETE INDUSTRIAL PLANT

PERHAPS MOST IMPORTANTLY CHINA RECOGNIZED THAT AN INFLUX OF FOREIGN CAPITAL
IN A SOCIALIST STATE MUST BE ACCOMPANIED BY DOMESTIC ECONOMIC REFORM THUS
CHINA ALLOWS ENTERPRISES IN THE SPECIAL ECONOMIC ZONES TO PAY HIGHER WAGES
THAN THOSE THAT PREVAIL ELSEWHERE AND TO UTILIZE BONUSES TO STIMULATE
WORKER PRODUCTIVITY FOREIGN AND DOMESTIC CONSUMER GOODS OF ALL KINDS ARE
INCREASINGLY AVAILABLE IN THE ECONOMIC ZONES MAKING THE EXTRA PAY A TRUE
INCENTIVE TO THE WORKERS WORKERS ARE PERMITTED TO RESETTLE TO THE ZONES
FROM OTHER PARTS OF CHINA AND ARE ALLOWED TO SEND HOME THEIR SAVINGS AND
NEWLYPURCHASED GOODS CHINA'S SHARING OF THE WEALTH AMONG THE POPULATION
BENEFITS THE DOMESTIC ECONOMY INCREASES OVERALL WELLBEING ENCOURAGES THE
RISE OF PRODUCTIVITY AND HELPS DEFUSE POLITICAL TENSIONS

NO SUCH INCENTIVES ARE AVAILABLE IN CUBA IN HIS INTERVIEW MR LAGE
ACKNOWLEDGED THAT THERE IS AN OVERSUPPLY OF CURRENCY IN CUBA TOO MUCH
MONEY AND NOTHING TO BUY WITH IT AS WELL AS A DISINCENTIVE TO WORK HE
CONCEDED THAT IT WOULD NOT BE POSSIBLE TO PROVIDE ECONOMIC INCENTIVES TO THE
WORK FORCE UNTIL THE CURRENT ECONOMIC CRISIS IS OVERCOME AND EMPHASIZED THAT
CUBA IS BENT ON MAXIMIZING EXPORTS AT THE COST OF DEPRIVING ITS CITIZENS OF
EVEN THE MOST BASIC NECESSITIES EVEN SUGAR IS OFTEN UNAVAILABLE IN CUBA
THESE DAYS

MR LAGE ALSO ACKNOWLEDGED THAT CUBAN NATIONALS ARE BEING DENIED ACCESS TO
TOURIST FACILITIES TO AVOID LOSING FOREIGN EXCHANGE REVENUES CUBANS ALSO
MAY NOT BUY THE GOODS ON CONSPICUOUS DISPLAY AT SHOPS CATERING TO THE
HARDCURRENCY FOREIGN VISITOR THIS SITUATION IS BEING TERMED TOURISM
APARTHEID WITHIN CUBA AND HAS BECOME A SOURCE OF RESENTMENT AMONG THE
POPULATION THE LACK OF BASIC CONSUMER NECESSITIES AMONG CUBANS ONLY MAKES
THEIR EXCLUSION FROM TARGETED AREAS OF FOREIGN CONSUMPTION EVEN MORE
GRATING

CHINA ALSO HAS BEEN HELPED BY HAVING WEALTHY TRADING PARTNERS HONG KONG AND
TAIWAN NEARBY AND READY TO MOVE IN THE DOORS TO CUBA'S NATURAL TRADING
PARTNER THE US ARE CLOSED AND ARE LIKELY TO REMAIN SO UNTIL THERE IS A
MAJOR CHANGE IN CUBA'S POLITICAL SYSTEM THE UNAVAILABILITY OF THE US
MARKET WILL BE PARTICULARLY DAMAGING TO ANY EFFORTS TO ESTABLISH ASSEMBLY
FACILITIES IN CUBA OF THE TYPE THAT NOW THRIVES IN THE DOMINICAN REPUBLIC
JAMAICA MEXICO AND CENTRAL AMERICA

THESE AND OTHER CONTRASTS MAKE IT SAFE TO ANTICIPATE THAT CASTRO WILL FAIL
WHERE CHINA SUCCEEDED THE DIFFERENCES IN APPROACH BETWEEN THE TWO COUNTRIES
 PARTICULARLY CUBA'S FAILURE TO INSTITUTE ECONOMIC REFORMS AT THE LOCAL
LEVEL UTIMATELY WILL NEGATE THE POTENTIAL BENEFITS OF FOREIGN INVESTMENT
IN CUBA

MR TRAVIESODIAZ A CUBANAMERICAN IS AN ATTORNEY IN A WASHINGTON LAW
FIRM 9301080012 930108 DRESS BARN FIVEWEEK SALES RISE

STAMFORD CONN DRESS BARN INC SAID SALES FOR THE FIVE WEEKS ENDED DEC
26 ROSE 17 TO 479 MILLION FROM 411 MILLION WHILE COMPARABLESTORE
SALES ROSE 5

THE WOMEN'S OFFPRICE APPAREL RETAILER OPERATES 598 STORES A 10 INCREASE
FROM A YEAR EARLIER AN ADDITIONAL 60 TO 75 OPENINGS ARE PLANNED FOR THE
SPRING SEASON THE COMPANY SAID 9301080011 930108 VALUE CITY SALES RISE

COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID COMPARABLESTORE
SALES FOR THE FIVE WEEKS ENDED DEC 26 INCREASED 7 TOTAL SALES ROSE 103
TO 1567 MILLION FROM 142 MILLION

VALUE CITY IS AN OFFPRICE DEPARTMENTSTORE CHAIN 9301080010 930108 KODAK
IS SAID TO PLAN LAYOFFS OF 2000 TO 4000  BY JOAN E RIGDON 
STAFF REPORTER OF THE WALL STREET JOURNAL

ROCHESTER NY EASTMAN KODAK CO WILL LAY OFF 2000 TO 4000 EMPLOYEES
HERE DURING THE NEXT SIX MONTHS MARKING THE COMPANY'S FIRST LAYOFFS IN MORE
THAN A DECADE AN INDIVIDUAL CLOSE TO THE COMPANY SAID

THE WORKERS WHO HAVEN'T BEEN NOTIFIED YET WILL BE CUT FROM RESEARCH
MARKETING AND MANUFACTURING ACCORDING TO THIS INDIVIDUAL IN SOME CASES
MANAGERS WHO'VE BEEN REASSIGNED TO SALES JOBS FROM DESK JOBS ARE EXPECTED TO
REPLACE SALES PEOPLE IN THE FIELD

THE LAYOFFS WOULD BE CONSISTENT WITH KODAK'S RECENT STATEMENTS THAT IT WOULD
MAKE SUBSTANTIAL CUTS IN RESEARCH AND DEVELOPMENT COSTS THIS YEAR SAID B
ALEX HENDERSON A PRUDENTIAL SECURITIES INC ANALYST SEPARATELY KODAK WILL
CUT ADVERTISING COSTS BY PRODUCING FEWER ADS THAT WILL RUN MORE OFTEN HE
SAID

KODAK WOULDN'T COMMENT ON THE POTENTIAL LAYOFFS BUT A SPOKESMAN SAID THE
COMPANY HAS BEEN RESTRUCTURING ITS SALES FORCE IN RECENT YEARS SO THAT EACH
CUSTOMER HAS ONLY ONE KODAK REPRESENTATIVE INSTEAD OF DIFFERENT
REPRESENTATIVES FOR DIFFERENT PRODUCT LINES

TRADITIONALLY KODAK HAS CUT ITS WORKFORCE WITH COSTLY BUYOUTS AND EARLY
RETIREMENT PACKAGES KODAK'S LATEST EARLY RETIREMENT PROGRAM INVOLVED 8321
WORKERS INCLUDING SEVERAL SENIOR MANAGERS THE COMPANY WAS RELUCTANT TO
LOSE AT AN AVERAGE COST OF 120000 AN EMPLOYEE KAY WHITMORE CHAIRMAN
HAS SINCE CONCEDED THAT THAT PROGRAM WAS TOO RICH

KODAK A PHOTOGRAPHY CHEMICALS AND HEALTH CONCERN HAS ABOUT 133200
EMPLOYEES INCLUDING ABOUT 75300 IN THE US

SEPARATELY KODAK SAID YESTERDAY THAT IT WILL SLASH PRICES ON ITS NEW PHOTO
CD PLAYERS WHICH CONSUMERS HAVE LARGELY SNUBBED SINCE THEIR INTRODUCTION IN
AUGUST THE PLAYERS WHICH DISPLAY PHOTOS FROM COMPACT DISKS ON TELEVISION
ALSO PLAY MUSIC DISKS

WHILE THE PRICE CUTS PROBABLY WILL SPUR SALES THE PRICES ARE STILL WELL
ABOVE WHAT MOST CONSUMERS ARE WILLING TO SPEND KODAK'S ONEDISK PLAYER
WHICH CAN CROP AND ZOOM IN ON PHOTOS NOW HAS A MINIMUM ADVERTISED PRICE OF
399 DOWN FROM 499 THE COMPANY'S FIVEDISK CD CHANGER WITH CROP AND ZOOM
FUNCTIONS NOW HAS A MINIMUM ADVERTISED PRICE OF 499 DOWN FROM 599 AND
THE LEAST POPULAR MODEL A ONEDISK CHANGER WITHOUT CROPANDZOOM FUNCTIONS
HAS A MINIMUM ADVERTISED PRICE OF 349 DOWN FROM 379

KODAK HOPES THAT PHOTO CD PLAYERS WILL PERK UP SLUGGISH FILM SALES BY
GETTING CONSUMERS EXCITED ABOUT PHOTOGRAPHY AGAIN THE COMPANY HAS SAID IT
DOESN'T EXPECT TO MAKE A PROFIT ON ITS PHOTO CD UNTIL 1994 9301080009
930108 MARKETING & MEDIA LIBERTY MEDIA BID ON HOME SHOPPING HITS
ANTITRUST SNAG  BY MARK ROBICHAUX STAFF REPORTER OF THE WALL
STREET JOURNAL

NEW YORK LIBERTY MEDIA CORP HIT A SNAG YESTERDAY IN ITS ATTEMPT TO BUY
AN 80 STAKE IN HOME SHOPPING NETWORK INC WHEN THE JUSTICE DEPARTMENT MADE
A SECOND REQUEST FOR INFORMATION IN ITS REVIEW OF THE ANTITRUST IMPLICATIONS
OF THE DEAL

LIBERTY MEDIA HAD HOPED TO CLOSE THE 160 MILLION CASHANDSTOCK TRANSACTION
BY THE END OF 1992 CONTINGENT ON THE JUSTICE DEPARTMENT'S APPROVAL BUT
AFTER NEARLY A MONTH OF REVIEW ANTITRUST OFFICIALS ARE STILL DELIBERATING
BECAUSE LIBERTY MEDIA ALREADY HOLDS A SUBSTANTIAL STAKE IN QVC NETWORK THE
ONLY MAJOR RIVAL OF HOME SHOPPING IN THE TELEVISION SHOPPING BUSINESS

LIBERTY AND TWO FELLOW SHAREHOLDERS COMCAST CORP AND NEWLY NAMED QVC
CHAIRMAN BARRY DILLER HAVE AGREED TO VOTE THEIR SHARES AS A GROUP GIVING
LIBERTY EFFECTIVE CONTROL OF BOTH COMPANIES IF THE HOME SHOPPING DEAL IS
APPROVED LIBERTY MEDIA IS EXPECTED TO MERGE THE TWO TV SHOPPING GIANTS INTO
A TVRETAIL POWERHOUSE WITH COMBINED ANNUAL REVENUE OF MORE THAN 2 BILLION
ALTHOUGH THE COMPANY HAS SAID IT HAS NO IMMEDIATE PLANS TO DO SO

THE JUSTICE DEPARTMENT'S REQUEST FOR ADDITIONAL DATA ISN'T UNUSUAL BUT IT
NONETHELESS PROMPTED CRAIG BIBB AN ANALYST AT PAINEWEBBER TO DOWNGRADE HIS
NEUTRAL INVESTMENT RATING ON HOME SHOPPING TO UNATTRACTIVE THEY WERE
CLEARLY IN A BETTER POSITION TO SEEK AN APPROVAL UNDER PRESIDENT BUSH WHO
HAD A LAISSEZ FAIRE APPROACH TO COMPETITIVE ISSUES LIKE THIS SAID MR
BIBB IT'S A LOT LESS CLEAR WITH CLINTON AND GORE PARTICULARLY SINCE GORE
SEEMS ANTAGONISTIC TO THE CABLE INDUSTRY

HOME SHOPPING SHARES CLOSED AT 7375 DOWN 875 CENTS IN LATE TRADING
YESTERDAY ON THE NEW YORK STOCK EXCHANGE

A KEY ISSUE THAT THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION WILL CONSIDER
IS WHETHER A MERGER OF THE TWO CHANNELS WOULD CONSTITUTE A CONCENTRATION OF
MAKET POWER LIBERTY HAS ARGUED THAT THE TVSHOPPING CHANNELS ARE PART OF A
MUCH BROADER RETAIL MARKET THAT ENCOMPASSES ALL TYPES OF RETAILERS
INCLUDING SHOPPING MALLS AND CATALOG SHOWROOMS

IT IS UNCLEAR WHETHER THE DEAL WILL RUN INTO ANTITRUST OPPOSITION OR HOW
LONG THE REVIEW WILL LAST THE CNBC BUSINESS CHANNEL OWNED BY GENERAL
ELECTRIC CO'S NBC UNIT MANAGED TO ACQUIRE ITS BIGGER RIVAL FINANCIAL NEWS
NETWORK WITHOUT PROBLEMS BUT IN THAT CASE FNN WAS UNPROFITABLE AND CNBC
WAS A FLEDGLING STARTUP NOT NEARLY AS POWERFUL AS LIBERTY

HOME SHOPPING AND THE JUSTICE DEPARTMENT DECLINED TO COMMENT A SPOKESMAN
FOR LIBERTY SAID SIMPLY WE INTEND TO RESPOND TO THE REQUEST AS SOON AS WE
CAN IN ADDITION HOME SHOPPING SAID IT IS POSTPONING ITS ANNUAL MEETING
SET FOR TUESDAY BECAUSE OF MATTERS RELATING TO THE PENDING SALE
9301080008 930108 MARKETING BRIEF GANNETT CO COMPANY AGREES TO SELL
 HONOLULU STARBULLETIN

GANNETT CO AGREED TO SELL THE HONOLULU STARBULLETIN TO LIBERTY NEWSPAPERS
LTD CLEARING THE WAY FOR ITS AQUISITION OF THE BIGGER HONOLULU ADVERTISER

TERMS WEREN'T DISCLOSED IN THE DEAL UNDER WHICH GANNETT ARLINGTON VA
WILL SELL THE 88000CIRCULATION STARBULLETIN TO THE LIBERTY PARTNERSHIP
CONTROLLED BY RUBERT PHILLIPS OF DESTIN FLA WHO HAS ACQUIRED FOUR GANNETT
NEWSPAPERS IN THE PAST FOUR YEARS

GANNETT BEGAN SEEKING A BUYER IN SEPTEMBER WHEN IT SET PLANS TO ACQUIRE THE
105000CIRCULATION ADVERTISER FROM PERSIS CORP FEDERAL LAW PREVENTS IT
FROM OWNING BOTH PAPERS IN THE MARKET THE STARBULLETIN WILL CONTINUE TO
PUBLISH AS AN AFTERNOON PAPER AND THE JOINT OPERATING AGREEMENT THAT HAS
COMBINED BOTH PAPERS' AD SALES PRODUCTION AND DISTRIBUTION FOR THE PAST 30
YEARS WILL CONTINUE THE MEDIA COMPANY SAID IT EXPECTS TO CLOSE BOTH
TRANSACTIONS BY JAN 31 9301080007 930108 ACTION BY EC BEGINS AGAINST
FAR EASTERN FREIGHT CONFERENCE

BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT OPENED
COMPETITIONINFRINGEMENT PROCEEDINGS AGAINST THE FAR EASTERN FREIGHT
CONFERENCE REGARDING AGREEMENTS BETWEEN ITS MEMBER COMPANIES TO FIX RATES ON
INLAND TRANSPORT

THE PROBE BY BRUSSELS OFFICIALS FOLLOWED COMPLAINTS AGAINST THE LONDONBASED
SHIPPING CONFERENCE BY GERMAN MARITIME SHIPPERS

MARITIME TRANSPORT SERVICES ENJOY LIMITED PROTECTION FROM EC ANTITRUST RULES
THROUGH A BLOCK EXEMPTION BUT THE GERMAN COMPANIES COMPLAINED THAT THE FAR
EASTERN FREIGHT CONFERENCE EXCEEDED THAT BLOCK EXEMPTION BY ALSO FIXING
PRICES ON INLAND TRANSPORT SERVICES THE CONFERENCE CLAIMS THAT ITS INLAND
WATERWAY PRACTICES ARE PART OF A COMPREHENSIVE RATE STRUCTURE FOR
DOORTODOOR SERVICES SO THEY DO NOT VIOLATE EC RULES

BASED ON ITS INITIAL INVESTIGATION THE COMMISSION SAID IT WAS DISPOSED TO
FIND INFRINGEMENT ON THE PART OF THE CONFERENCE AS A RESULT THE COMMISSION
SENT A STATEMENT OF OBJECTIONS TO WHICH THE CONFERENCE WILL RESPOND BEFORE
ANY FURTHER ACTION IS TAKEN

MEMBERS OF THE FAR EASTERN FREIGHT CONFERENCE INCLUDE CIE GENERALE
MARITIME OF FRANCE CROATIA LINE EGYPTIAN INTERNATIONAL SHIPPING CO
EGYPTIAN NAVIGATION CO HAPAG LLOYD OF GERMANY K LINE OF JAPAN LLOYD
TRIESTINO OF ITALY MAERSK LINE OF DENMARK MALAYSIAN INTERNATIONAL SHIPING
CO MITSUI OSK OF JAPAN NATIONAL SHIPPING CO OF SAUDI ARABIA NEDLLOYD OF
THE NETHERLANDS NEPTUNE ORIENT LINE OF SINGAPORE NYK OF JAPAN ORIENT
OVERSEAS CONTAINER LINE OF HONG KONG EAST ASIATIC CO OF DENMARK AND P&O
CONTAINERS LTD OF BRITAIN 9301080006 930108 DSM MAY ELIMINATE AS MANY
AS 1000 JOBS IN '93 ECONOMY CITED  SPECIAL TO THE WALL STREET
JOURNAL

AMSTERDAM DUTCH CHEMICAL COMPANY DSM NV SAID IT MAY ELIMINATE 800 TO
1000 JOBS THIS YEAR DUE TO FURTHER ECONOMIC DETERIORATION

DSM BASED IN HEERLEN SAID IT HAS PROPOSED A PLAN TO ALLOW FOR THE MAXIMUM
NUMBER OF JOBS TO BE LOST THROUGH ATTRITION THE COMPANY WILL MEET WITH
UNION OFFICIALS IN MIDJANUARY TO DISCUSS THE PLAN

IF ACCEPTED THE PROPOSAL WOULD ADD TO A PREVIOUS PROGRAM IMPLEMENTED BY DSM
TO CUT COSTS AND INCREASE EFFICIENCY

UNDER THE NEW PLAN EMPLOYEES WHO WILL REACH THE AGE OF 58 BEFORE JAN 1
1995 WILL BE OFFERED EARLY RETIREMENT REGARDLESS OF THE NUMBER OF YEARS OF
EMPLOYMENT THE COMPANY SAID

IN ADDITION EFFORTS WILL BE MADE TO INTERNALLY PLACE THOSE EMPLOYEES TOO
YOUNG TO RETIRE BUT MORE THAN 45 YEARS OLD FOR WHOM FINDING SUITABLE NEW
EMPLOYMENT WOULD LIKELY BE DIFFICULT DSM SAID

EMPLOYEES UNDER THE AGE OF 45 WILL BE OFFERED ASSISTANCE IN FINDING NEW
EMPLOYMENT OUTSIDE THE COMPANY

DISMISSALS WILL BE DETERMINED ON AN INDIVIDUAL BASIS A DSM SPOKESMAN SAID
ADDING THAT NO REAL TIMETABLE HAS BEEN SET FOR THE JOB CUTS

THE PROBLEM IS THAT THIS IS A CONTINUING STORY AND THE CIRCUMSTANCES ARE
CHANGING THE SPOKESMAN SAID

INDEED DSM'S CIRCUMSTANCES STEADILY CHANGED FOR THE WORSE IN 1992 FACED
WITH CHEAP IMPORTS FROM EASTERN EUROPEAN COUNTRIES IN SOME OF ITS KEY
MARKETS THE COMPANY'S THIRDQUARTER NET INCOME PLUNGED 55 TO 53 MILLION
GUILDERS 288 MILLION FROM 117 MILLION GUILDERS A YEAR EARLIER SALES
WERE FLAT AT 208 BILLION GUILDERS

COMPANY CHAIRMAN HANS VAN LIEMT'S YEAREND LETTER TO EMPLOYEES WARNED THAT
EARNINGS IN THE FOURTH QUARTER WOULD LIKELY FALL BELOW THE THIRDQUARTER
LEVEL 9301080005 930108 BUSINESS BRIEF GTE LAFARGE CORP TO TAKE
1992 CHARGES DUE TO REVISED RULES

STAMFORD CONN GTE CORP SAID IT WOULD TAKE A 234 BILLION CHARGE
AGAINST 1992 RESULTS TO ADOPT A NEW ACCOUNTING STANDARD REQUIRING IT TO FUND
POSTRETIREMENT HEALTH BENEFITS FOR CURRENT EMPLOYEES

THE NONCASH AFTERTAX CHARGE WASN'T A SURPRISE SINCE ALL COMPANIES MUST
ADOPT THE RULE FINANCIAL ACCOUNTING STANDARD 106 TO REFLECT THE ACCRUED
BENEFITS OF PRIOR YEARS THAT WEREN'T REFLECTED IN PREVIOUS FINANCIAL
STATEMENTS BESIDES THE ONETIME CHARGE GTE SAID THAT ADOPTING THE RULE
WOULD REDUCE 1992 PROFIT FROM CONTINUING OPERATIONS BY 137 MILLION OR 15
CENTS A SHARE FOR CURRENT SERVICE COSTS AND INTEREST ON THE ACCUMULATED
OBLIGATION

THE TELECOMMUNICATIONS COMPANY SAID THAT IT WILL ALSO TAKE A ONETIME 100
MILLION CHARGE TO ADOPT FINANCIAL ACCOUNTING STANDARD 109 AN ACCOUNTING
TREATMENT FOR DEFERRED TAXES

REFLECTING ALL THE CHARGES GTE RESTATED RESULTS FOR THE FIRST NINE MONTHS
OF 1992 TO REFLECT A NET LOSS OF 117 BILLION OR 130 A SHARE BEFORE THE
CHARGES THE COMPANY HAD REPORTED NET INCOME FOR THE NINE MONTHS OF 137
BILLION OR 151 A SHARE

SEPARATELY LAFARGE CORP RESTON VA ALSO ANNOUNCED CHANGES TO 1992
FIRSTQUARTER EARNINGS REFLECTING THE ADOPTION OF THE TWO NEW ACCOUNTING
RULES THE CONSTRUCTION MATERIALS CONCERN SAID THAT IT WOULD TAKE AN 86
MILLION CHARGE FOR THE POSTRETIREMENT BENEFITS RULE LAFARGE WILL RECORD A
24 MILLION GAIN FOR THE QUARTER TO REFLECT THE INCOMETAX RULE THE
CUMULATIVE IMPACT OF THE CHANGES WILL BE AN AFTERTAX CHARGE OF 62 MILLION
AND AN INCREASE IN 1992 PRETAX OPERATING EXPENSES OF 9 MILLION
9301080004 930108 FOOD LION CITES SHOW FOR DECEMBER DECLINE OF
SAMESTORE SALES

THE GROCERY CHAIN SAID THE DROP IN SALES IN STORES OPEN MORE THAN ONE YEAR
REFLECTED THE CONTINUING FALLOUT FROM A TV PROGRAM THAT RAISED CONCERNS
ABOUT THE COMPANY'S FOODHANDLING PRACTICES

IN NOVEMBER ABC'S PRIME TIME LIVE REPORTED THAT FOOD LION AMONG OTHER
THINGS REPACKAGED AND SOLD MEAT THAT WAS OUT OF DATE AND MAY HAVE BEEN
SPOILED SALES FOR THE MONTH DROPPED 95 AT THE TIME OF THE BROADCAST
FOOD LION SAID IT WAS TAKING THE ALLEGATIONS SERIOUSLY BUT DENIED THAT ITS
STORES POSED THE HEALTH PROBLEMS CITED

AS A RESULT OF THE ABC REPORT FOOD LION HAS MADE SOME CHANGES SAID MICHAEL
MOZINGO A COMPANY SPOKESMAN FOR INSTANCE STORES FORMERLY WOULD OPEN
PACKAGES OF MEAT ON THE SELLBY DATE TO CHECK FOR FRESHNESS SPOILED MEAT
WOULD BE DISCARDED BUT MEAT THAT WAS STILL FRESH WOULD BE REPACKAGED AND
SOLD AT A DISCOUNT NOW SO AS NOT TO CREATE ANY FURTHER SUSPICIONS ABOUT
REPACKAGING MR MOZINGO SAID PRICE REDUCTIONS ARE DONE WHILE THE MEAT
REMAINS IN THE CASE IT IS THEN AVAILABLE FOR SALE ONLY ONE DAY MORE

THE DROP IN SAMESTORE SALES COULD ALSO BE PARTIALLY ATTRIBUTED TO LOW
INFLATION OF FOOD PRICES AND CONSUMERS SWITCHING FROM NATIONAL TO STORE
BRANDS MR MOZINGO SAID

FOR THE YEAR ENDED DEC 26 FOOD LION'S SALES INCREASED 97 WITH
SAMESTORE SALES DECLINING LESS THAN 05 THE COMPANY REPORTED

IN LATE OVERTHECOUNTER TRADING YESTERDAY FOOD LION'S CLASS B OR VOTING
SHARES WERE QUOTED AT 8 DOWN 125 CENTS WHILE ITS CLASS A SHARES WERE
QUOTED AT 7625 UNCHANGED 9301080003 930108 ASPIN SIDESTEPS QUESTIONS
AT HEARING ON HIS NOMINATION TO BE DEFENSE CHIEF  BY THOMAS E
RICKS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON AFTER DECADES OF SAYING WHAT HE WOULD DO IF HE WERE SECRETARY
OF DEFENSE LES ASPIN SPENT A DAY SAYING AS LITTLE AS POSSIBLE TO THE SENATE
ARMED SERVICES COMMITTEE AS IT CONSIDERED HIM FOR THE POST

BUT THE COMMITTEE DIDN'T TAKE OFFENSE AT REP ASPIN'S BOBBING AND WEAVING
AND THE WISCONSIN DEMOCRAT APPEARS TO BE A SHOOIN AS DEFENSE CHIEF MR
ASPIN SPENT MUCH OF THE DAY SIDESTEPPING QUESTIONS ON WHEN THE US SHOULD
USE MILITARY FORCE AND HE EVEN DECLINED TO ENDORSE SOME POSITIONS HE HAS
TAKEN OVER THE PAST SEVEN YEARS AS CHAIRMAN OF THE HOUSE ARMED SERVICES
COMMITTEE SUCH AS ALLOWING WOMEN TO FLY AIRCRAFT IN COMBAT

WHEN MEMBERS TRIED TO PIN HIM DOWN ON WHAT IMMINENT STEPS THE US SHOULD
TAKE IN THE FORMER YUGOSLAVIA MR ASPIN REPEATEDLY DECLINED SAYING AT ONE
POINT TO JOHN MCCAIN OF ARIZONA CAN I BEG OFF ON THAT SENATOR

GIVEN HIS UNCHARACTERISTIC RETICENCE THE FEW POSITIONS MR ASPIN DID TAKE
STOOD OUT AMONG THE SUBJECTS ON WHICH HE MADE CONCRETE COMMENTS WERE
PENTAGON PROCUREMENT POLICIES HIS HIRING PLANS THE NEED FOR BETTER
MILITARY SEALIFT CAPABILITIES THE NEW START II TREATY NEW ROLES FOR THE
MILITARY IN US SOCIETY AND THE MILITARY'S BAN ON HOMOSEXUALS

MR ASPIN CRITICIZED PENTAGON PROCUREMENT PROCEDURES AS INCREASINGLY
COMPLEX AND ADVERSARIAL THE CHALLENGE HE FACES HE SAID IS TO STREAMLINE
AND SIMPLIFY THE PROCESS WITHOUT OPENING THE DOOR TO NEW ABUSES HE
SUGGESTED THAT ONE WAY OF DOING THAT IS TO WEIGH THE COSTS AS WELL AS THE
BENEFITS OF REGULATIONS GOVERNING PROCUREMENT

FOR DEPUTY SECRETARY OF DEFENSE MR ASPIN SAID HE IS LOOKING FOR SOMEONE
WITH THE BACKGROUND AND SKILLS HE LACKS EXPERIENCE IN INDUSTRY IN DEFENSE
ACQUISITION AND IN RUNNING LARGE ORGANIZATIONS HE ALSO INDICATED HE
INTENDS TO RETAIN SOME CURRENT SENIOR PENTAGON OFFICIALS

IN KEEPING WITH THE CLINTON CAMPAIGN'S TACTIC OF EMPHASIZING WHAT IT
SUPPORTS IN DEFENSE RATHER THAN WHAT IT OPPOSES MR ASPIN ENDORSED
EXPANDING MILITARY SEALIFT AND AIRLIFT CAPABILITIES IN WHAT APPEARS TO BE
REASSURING NEWS FOR US SHIPBUILDERS HE EMPHASIZED THAT WE REALLY NEED
TO GIVE MORE ATTENTION TO THE FAST SEALIFT AREA  THAT'S CLEARLY GOING
TO BE ON THE PRIORITY LIST ALSO AMPHIBIOUS SHIPS

MR ASPIN CRITICIZED THE START II STRATEGIC ARMS REDUCTION TREATY SAYING HE
WAS WORRIED BY ITS PROVISION THAT NUCLEAR WARHEADS REMOVED FROM MISSILES
WOULD BE STORED RATHER THAN DESTROYED THAT'S FINE IN THE OLD SOVIET
UNION IT'S LESS SURE IN THE CURRENT SITUATION HE SAID IF ECONOMIC TIMES
GET DESPERATE IS THERE SOME INCENTIVE FOR THE PEOPLE WHO ARE GUARDING THESE
THINGS TO PUT THEM OUT INTO THE BLACK MARKET HE ADDED THAT HE WANTS TO
LOOK INTO HELPING THE RUSSIANS BOOST THE RATE AT WHICH THEY DISMANTLE
WARHEADS CURRENTLY ABOUT 1500 A YEAR

MR ASPIN WAS LESS CONCRETE ABOUT HIS PLANS TO CARRY OUT PRESIDENTELECT
CLINTON'S PROMISE TO DISMANTLE THE PENTAGON'S BAN ON HOMOSEXUALS IN THE
MILITARY THAT CHANGE WOULD BE MADE VERY VERY DELIBERATELY HE SAID BUT
HE ADDED I CAN'T TELL YOU EXACTLY HOW BOTH THE CLINTON TEAM AND SENIOR
MILITARY OFFICIALS SEEM TO HAVE DECIDED OVER THE PAST MONTH THAT FIGHTING
OVER THE ISSUE IS A LOSING PROPOSITION AND THE BEST WAY TO HANDLE IT IS TO
LET THE CONTROVERSY COOL AND THEN INTRODUCE CHANGES SLOWLY

MUCH OF THE DAY'S DISCUSSION FOCUSED ON HOW THE MILITARY SHOULD BE USED IN
THE POSTCOLD WAR WORLD BOTH TO PROJECT US POWER OVERSEAS AND TO PLAY
OTHER ROLES AT HOME MR ASPIN EXPRESSED SUPPORT FOR EXPANDING THE
MILITARY'S ROLES IN US SOCIETY INTO AREAS SUCH AS DISASTER RELIEF
INNERCITY EDUCATION AND RURAL MEDICAL EVACUATION SERVICES MOVES FAVORED BY
SENATE ARMED SERVICES CHAIRMAN SAM NUNN D GA

UNDERSCORING THE DEGREE TO WHICH HE IS A CONGRESSIONAL INSIDER MR ASPIN
WAS INTRODUCED BY AMONG OTHERS FORMER SEN WILLIAM PROXMIRE OF WISCONSIN
FOR WHOM HE ONCE WORKED AND NEWLY INSTALLED SEN RUSS FEINGOLD ALSO OF
WISCONSIN WHO ONCE WORKED FOR MR ASPIN AS A CAMPAIGN VOLUNTEER ONE OF MY
MOST IMPORTANT TASKS WAS TO SIT IN THE CAR WITH HIS DOG DURING RECEPTIONS
SAID SEN FEINGOLD

MEANWHILE JESSE BROWN MR CLINTON'S CHOICE FOR SECRETARY OF VETERANS
AFFAIRS GOT BIPARTISAN ACCOLADES AT HIS CONFIRMATION HEARING NEVERTHELESS
HE FACED QUESTIONS ABOUT POTENTIAL PERCEPTIONS OF CONFLICT OF INTEREST AS HE
MOVES FROM LOBBYING THE GOVERNMENT FOR INCREASED VETERANS' BENEFITS TO
RUNNING THE DEPARTMENT THAT DISPENSES THEM

MR BROWN 48 YEARS OLD WAS EXECUTIVE DIRECTOR OF THE DISABLED AMERICAN
VETERANS A GROUP THAT HAS FREQUENTLY PRESSURED THE VA FOR BETTER BENEFITS
SEN ALAN SIMPSON R WYO NOTED THAT MR BROWN IS DUE TO RECEIVE A
SIZABLE PENSION FROM THE GROUP AND WARNED OF PERCEPTIONS THAT HE WOULD BE
BEHOLDEN TO THEM

MR BROWN SAID HE INTENDED TO RECUSE HIMSELF FROM DECISIONS INVOLVING
MATTERS BROUGHT TO ME BY A PARTY OR PARTIES OF THE DISABLED VETERANS
GROUP MOREOVER HE SAID THE GROUP DOESN'T CONTROL HIS PENSION IT IS
ADMINISTERED BY METROPOLITAN LIFE INSURANCE CO THE PENSION ARRANGEMENTS WE
HAVE ARE TOTALLY DIVESTED OF ANY INFLUENCE BY THE DAV HE SAID

MR BROWN MADE IT CLEAR HE WILL SEEK MORE MONEY FOR THE VETERANS AGENCY
SAYING HE DIDN'T THINK THE AGENCY'S BUDGET HAD GROWN ADEQUATELY IN RECENT
YEARS HE ALSO STRESSED THE IMPORTANCE OF REVAMPING THE NATION'S HEALTHCARE
SYSTEM AND WITH IT THE NETWORK OF VETERANS HOSPITALS TO HANDLE THE GROWING
NUMBER OF AGED VETERANS HE SAID HE OPPOSES ALLOWING NONVETERANS TO USE VA
HOSPITALS

HILARY STOUT CONTRIBUTED TO THIS ARTICLE 9301080002 930108 MUTUAL FUNDS
 BOND FUNDS POST TIDY GAINS FOR '92 DESPITE FLAT 4TH QUARTER  BY
ROBERT MCGOUGH AND JONATHAN CLEMENTS STAFF REPORTERS OF THE WALL STREET
JOURNAL

NEW YORK BOND MUTUAL FUNDS TURNED IN A WORKMANLIKE YEAR IN 1992 DESPITE A
FLAT FOURTH QUARTER

TAXABLE BOND FUNDS HAD AN AVERAGE 787 RETURN FOR THE YEAR INCLUDING PRICE
CHANGES AND REINVESTED DIVIDENDS ACCORDING TO LIPPER ANALYTICAL SERVICES
INC A SUMMIT NJ COMPANY THAT TRACKS MUTUAL FUND RETURNS THAT TOTAL
RETURN EXCEEDED THE 31 INFLATION RATE BUT IT LAGGED BEHIND STOCK FUNDS'
888 AVERAGE RETURN

THE YEAR'S BEST PERFORMERS WERE JUNK BOND FUNDS AND CONVERTIBLE BOND FUNDS
WHICH LIKE THE STOCK MARKET GOT A BOOST FROM THE LONGDELAYED ECONOMIC
RECOVERY BUT FOREIGN BOND FUNDS WERE HURT BY CURRENCY UPHEAVAL IN EUROPE

TAXABLE BOND FUNDS FINISHED WITH A NEARLY FLAT FOURTH QUARTER GAINING A
SCANT 018 PRICES FELL AND YIELDS ROSE ON INTERMEDIATE AND SHORTTERM
DEBT SECURITIES REDUCING THE FUNDS' RETURNS

THE RESPECTABLE GAINS COME AT A TIME WHEN BOND FUND SALES ARE SOARING
INVESTORS DISENCHANTED WITH LOWLY YIELDS ON MONEY MARKET FUNDS POURED
884 BILLION INTO BOND FUNDS DURING THE FIRST 11 MONTHS OF 1992 LAST
YEAR'S INFLOW WAS THE SECONDBEST EVER SURPASSED ONLY BY 1986 WHEN BOND
FUNDS PULLED IN 1086 BILLION

A MICHAEL LIPPER PRESIDENT OF THE FIRM BEARING HIS NAME SAYS THAT THE
BESTPERFORMING BOND FUNDS LAST YEAR WERE DISGUISED EQUITY FUNDS
CONVERTIBLE FUNDS WHICH LEAPT 588 IN THE FOURTH QUARTER OFTEN PERFORM IN
TANDEM WITH THE STOCK MARKET ESPECIALLY SMALL STOCKS

THE PERFORMANCE OF HIGHYIELD JUNK BOND FUNDS ALSO TENDS TO MIRROR STOCK
PRICES FOLLOWING A GOOD YEAR IN 1991 THESE HIGHRISK FUNDS TURNED IN
ANOTHER STRONG YEAR WITH THE CATEGORY UP AN AVERAGE 1769 JUNK FUNDS
INVEST IN BONDS ISSUED BY COMPANIES WHOSE CREDIT QUALITY IS RATED BELOW
INVESTMENT GRADE

MUCH OF THE JUNK FUNDS' GAIN CAME IN THE FIRST HALF SAYS DAVID BREAZZANO
MANAGER OF FIDELITY CAPITAL & INCOME FUND WHICH HAD A TOTAL RETURN OF
2805 FOR THE YEAR WITH A GOOD MARKET FOR INITIAL STOCK OFFERINGS BY
JUNKBOND ISSUERS COMPANIES WERE ABLE TO REFINANCE NOT ONLY WITH STOCK
OFFERINGS BUT WITH JUNK BOND OFFERINGS AT LOWER INTEREST RATES SAYS MR
BREAZZANO THE REFINANCINGS IMPROVED THE CREDIT QUALITY OF JUNK BOND ISSUERS
WHILE DECREASING THE SUPPLY OF THE BONDS SPURRING A RISE IN JUNK BOND
PRICES

CONVERTIBLE BONDS BENEFITED FROM LOW INTEREST RATES AND RISING STOCK PRICES
WHICH TOGETHER MADE A PERFECT ENVIRONMENT FOR CONVERTIBLES SAYS MICHAEL
ROSEN PORTFOLIO MANAGER OF ROCHESTER CONVERTIBLE BOND FUND ROCHESTER WITH
A 3117 TOTAL RETURN HAD THE BEST PERFORMANCE OF ANY BOND FUND IN 1992

CONVERTIBLE BONDS PAY A LOWER YIELD THAN EQUIVALENT CORPORATE BONDS BUT
THEY HAVE AN EQUITY KICKER THEY CAN BE EXCHANGED FOR A PRESET AMOUNT OF
THE ISSUING COMPANY'S STOCK FREQUENTLY COVERTIBLES ARE ISSUED BY SMALLER
COMPANIES FOR THE YEAR THE AVERAGE CONVERTIBLE FUND HAD A TOTAL RETURN OF
1356

MUNICIPAL BOND FUNDS HAD A GOOD YEAR WITH LONGTERM TAXEXEMPT FUNDS
LOGGING A TOTAL RETURN OF 871 MUNICIPAL BOND PRICES ROSE STRONGLY IN THE
FOURTH QUARTER AS INVESTORS FLOCKED TO THEM IN ANTICIPATION OF HIGHER TAX
RATES UNDER THE CLINTON ADMINISTRATION

FOREIGN BOND FUNDS GOT HAMMERED LAST YEAR ESPECIALLY THOSE INVESTING IN THE
SHORTTERM BILLS AND NOTES OF FOREIGN ISSUERS SHORTTERM GLOBAL INCOME
FUNDS LOST 073 THE CURRENCY DEVALUATIONS IN EUROPE WREAKED HAVOC WITH
THOSE FUNDS' INVESTMENT STRATEGIES WHICH ASSUMED THAT CURRENCIES THERE
WOULD TRADE WITHIN NARROW BANDS

THE POOREST PERFORMER ON LIPPER'S LIST WAS ONE OF TWO PILGRIM SHORTTERM
MULTIMARKET FUNDS WHICH LOST 1508 FOR THE YEAR WE THOUGHT THE
PERFORMANCE WAS UNACCEPTABLE SAYS KEVIN PERRY CHIEF INVESTMENT OFFICER AT
PILGRIM PILGRIM RECENTLY HIRED WARBURG INVESTMENT MANAGEMENT INTERNATIONAL
LTD TO RUN THE FUND MR PERRY SAID THE NEW MANAGERS EXPECT CONTINUED
VOLATILITY IN EUROPEAN CURRENCIES

THE FOURTH QUARTER'S POOREST PERFORMER ALSO WAS A FOREIGNBOND FUND
FIDELITY STERLING PERFORMANCE PORTFOLIO TURNED IN A LESS THAN STERLING
PERFORMANCE OVER THE PAST THREE MONTHS LOSING 1466

WHAT SHOULD FUND INVESTORS DO THIS YEAR THEY SHOULDN'T ASSUME THAT THE
TRENDS OF 1992 WILL CONTINUE IN 1993 SAYS THOMAS STEFFANCI DIRECTOR OF
FIXED INCOME AT FIDELITY INVESTMENTS HE RECKONS THAT GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION OR GINNIE MAE FUNDS AND GLOBAL BOND FUNDS WILL BE
THE STANDOUT FUNDS THIS YEAR

GLOBAL BOND FUNDS WERE AMONG THE PAST YEAR'S POOREST PERFORMERS CLIMBING
JUST 279 THESE FUNDS INVEST IN LONGERTERM SECURITIES THAN THE
SHORTTERM GLOBAL INCOME FUNDS MR STEFFANCI THINKS 1993 WILL BE MUCH
KINDER TO THE FUNDS ESPECIALLY THOSE THAT BET HEAVILY ON EUROPEAN BONDS AND
EMERGINGMARKETS DEBT

GINNIE MAE FUNDS WHICH CLIMBED AN AVERAGE 65 IN 1992 WERE HURT BY LAST
YEAR'S WAVE OF HOME REFINANCINGS THAT CAUSED MANY BONDS HELD BY THOSE FUNDS
TO BE PAID OFF EARLY THE FUNDS THEN HAD TO REPLACE THE PREPAID DEBT WITH
LOWERYIELDING SECURITIES

WITH THE RASH OF HOME REFINANCINGS NOW OVER AND INTEREST RATES LIKELY TO
REMAIN RELATIVELY STABLE GINNIE MAES OUGHT TO DO WELL OVER THE NEXT YEAR
COMPARED TO CORPORATES AND TREASURYS SAYS MR STEFFANCI

IAN MACKINNON VANGUARD GROUP'S HEAD OF FIXED INCOME IS FAVORING
INTERMEDIATETERM BOND FUNDS THOSE OWNING SECURITIES WITH AVERAGE
MATURITIES OF THREE TO 10 YEARS YOU CAN GO OUT 10 YEARS AND GET 90 OF THE
YIELD OF A 30YEAR TREASURY WITH ONLY 60 OF THE PRICE RISK HE SAYS

MR MACKINNON SAYS THAT INTERMEDIATETERM BOND FUNDS AREN'T LIKELY TO GET
HIT BECAUSE BOND YIELDS AND PRICES COULD BE RELATIVELY STABLE IN 1993 BUT
HE THINKS SHORTTERM BOND FUNDS COULD SUFFER SHAREPRICE DECLINES OF 05 TO
1 AS SHORTTERM INTEREST RATES RISE

HOWEVER MR MACKINNON THINKS THAT SHORTTERM BOND FUNDS SHOULD STILL
OUTPACE MONEY MARKET FUNDS BECAUSE OF THEIR SUPERIOR YIELDS ACCORDING TO
LIPPER SHORTTERM BOND FUNDS ARE YIELDING MORE THAN 5 COMPARED WITH LESS
THAN 3 FOR MONEY MARKET FUNDS 9301080001 930108 ATCO LTD'S STOCK
DISTRIBUTION

CALGARY ALBERTA ATCO LTD SAID IT COMPLETED THE DISTRIBUTION OF SHARES
IN ITS CONTRACT OIL AND GAS DRILLING BUSINESS OPERATIONS TO SHAREHOLDERS
JAN 1

CLASS I NONVOTING SHAREHOLDERS RECEIVED ONE CLASS A NONVOTING SHARE OF AKITA
DRILLING LTD FOR EVERY FOUR CLASS I SHARES OF ATCO HELD HOLDERS OF ATCO'S
CLASS II VOTING SHARES RECEIVED ONE CLASS B AKITA COMMON SHARE FOR EVERY
FOUR ATCO SHARES HELD

AKITA STOCK BEGINS TRADING ON THE TORONTO STOCK EXCHANGE TODAY IT SAID

ATCO HAS INTERESTS IN OIL AND GAS PRODUCTION UTILITIES AND MANUFACTURING
9301070166 930107 MATRIX SERVICE IN JOINT VENTURE

TULSA OKLA MATRIX SERVICE CO SAID IT FORMED A JOINT VENTURE WITH
ALSHAFAI & SONS CONSTRUCTORS OF SAUDI ARABIA

THE VENTURE WHICH STILL MUST BE APPROVED BY THE SAUDI GOVERNMENT WILL USE
THE SAUDI COMPANY'S CONSTRUCTION FACILITIES AND CONTACTS WITHIN SAUDIA
ARABIA TO PARTICIPATE IN MAINTENANCE AND REPAIR PROJECTS FOR THE
PETROCHEMICAL CRUDE OIL PRODUCTION AND REFINING MARKETS

THE NEW COMPANY AL SHAFAIMIDWEST CONSTRUCTORS LTD WILL GENERATE ABOUT
20 MILLION TO 25 MILLION IN ADDITIONAL REVENUE FOR MATRIX DURING THE FIRST
YEAR SAID A COMPANY SPOKESMAN FOR THE FISCAL YEAR ENDED MAY 31 1992
MATRIX HAD REVENUE OF ABOUT 123 MILLION 9301070165 930107 BUSINESS
BRIEF FREDDIE MAC EXPECTS FLAT 4THPERIOD NET REFINANCINGS CITED

MCLEAN VA FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID
FOURTHQUARTER EARNINGS WOULD REMAIN ESSENTIALLY FLAT AT BETWEEN 79 CENTS
AND 81 CENTS A SHARE BECAUSE OF THE FLOOD OF MORTGAGE REFINANCINGS

FREDDIE MAC WHICH PURCHASES MORTGAGES FOR RESALE TO INVESTORS AS
SECURITIES SAID HIGHERTHANEXPECTED REFINANCING LEVELS WOULD CAUSE IT TO
SUFFER A FOURTHQUARTER LOSS OF ABOUT 70 MILLION ON ITS FLOAT BALANCE
DOUBLE THE YEARAGO LOSS

AFTER A HOMEOWNER REFINANCES BY PREPAYING THE EARLIER MORTGAGE FREDDIE MAC
MUST WAIT 30 DAYS BEFORE PAYING OFF THE INVESTOR IN THE SECURITY BACKED BY
THE MORTGAGE DURING THIS TIME IT MUST CONTINUE TO PAY THE INVESTOR
INTEREST OF ABOUT 9 WHILE EARNING SHORTTERM RETURNS OF LESS THAN 4

MASS REFINANCING ACTIVITY DID MORE DAMAGE TO FREDDIE MAC'S EARNINGS THAN
ANYONE EXPECTED SAID ANALYST JONATHAN GRAY WHO FOLLOWS THE COMPANY FOR
SANFORD C BERNSTEIN & CO CONSENSUS EARNINGS ESTIMATES ON WALL STREET WERE
ABOUT 90 CENTS A SHARE

LEADING INDICATORS POINT TO A SIGNIFICANT SLOWDOWN IN REFINANCING ACTIVITY
IN THE FIRST QUARTER SAID LELAND BRENDSEL THE COMPANY'S CHAIRMAN AND
CHIEF EXECUTIVE OFFICER THIS SHOULD REDUCE THE NET FLOAT LOSS CONSIDERABLY
IN THE QUARTER

THE COMPANY ALSO SAID THAT DUE TO A NEW ACCOUNTING STANDARD FOR FORECLOSED
ASSETS ITS FOURTHQUARTER LOAN LOSS PROVISION WOULD BE ABOUT 113 MILLION
LESS THAN THE 128 MILLION PREVIOUSLY EXPECTED

IN ADDITION THE COMPANY SAID IT WOULD RECORD A 67 MILLION CHARGE TO
EARNINGS FOR ADOPTING A NEW ACCOUNTING STANDARD RELATED TO POSTRETIREMENT
HEALTH BENEFITS THE CHARGE IS FOR ACCUMULATED LIABILITIES FROM PRIOR YEARS
THE CONTINUING ANNUAL INCREASE IN SUCH BENEFIT EXPENSES IS EXPECTED TO BE
ABOUT 2 MILLION 9301070164 930107 BUSINESS BRIEF CHEVRON TO RESTATE
'92 RESULTS SLASHING NET TO MEET NEW ACCOUNTING STANDARDS

SAN FRANCISCO CHEVRON CORP SAID IT WILL RESTATE ITS 1992 FINANCIAL
STATEMENTS REDUCING ALREADYREPORTED NINEMONTH NET INCOME BY 540 MILLION
OR 158 A SHARE TO COMPLY WITH NEW ACCOUNTING STANDARDS FOR RETIREMENT
BENEFITS AND TAXES

THE OIL COMPANY SAID ITS CHANGES WILL COMPRISE ONETIME CHARGES OF 625
MILLION OR 182 A SHARE APPLIED RETROACTIVELY TO THE FIRST QUARTER OF
1992 AND INCREASES TOTALING 85 MILLION OR 25 CENTS A SHARE FOR THE
SECOND AND THIRD QUARTERS

THE ADJUSTMENTS ARE BEING MADE TO COMPLY WITH FINANCIAL ACCOUNTING STANDARDS
BOARD STATEMENT 109 DEALING WITH ACCOUNTING FOR RETIREMENT BENEFITS AND
THE FASB'S STATEMENT 109 ACCOUNTING FOR CORPORATE INCOME TAXES UNDER
FINANCIAL ACCOUNTING RULES COMPANIES MAY RECOGNIZE THE NEW STANDARDS BY
RESTATING 1992 RESULTS OR BY RECOGNIZING THE CHANGE IN THE 1993 FIRST
QUARTER

FOR THE 1992 FIRST QUARTER SAN FRANCISCOBASED CHEVRON ORIGINALLY REPORTED
NET INCOME OF 304 MILLION OR 88 CENTS A SHARE ON REVENUE OF 968
BILLION INDICATING A RESTATED NET LOSS OF 321 MILLION OR 94 CENTS A
SHARE FOR THE QUARTER

NET INCOME FOR THE FIRST NINE MONTHS OF 1992 WAS ORIGINALLY REPORTED AS
103 BILLION OR 302 A SHARE ON REVENUE OF 314 BILLION INDICATING
RESTATED NET INCOME OF 492 MILLION OR 144 A SHARE A COMPANY OFFICIAL
SAID THE EXACT EFFECT OF THE NEW STANDARDS ON 1992 FOURTHQUARTER RESULTS
HASN'T BEEN DETERMINED BUT THAT THE ACCOUNTING CHANGE FOR NONPENSION
RETIREMENT BENEFITS IS EXPECTED TO COST BETWEEN 11 MILLION AND 12 MILLION
QUARTERLY

THE OFFICIAL SAID THAT BECAUSE OF SOMEWHAT STRONG CRUDEOIL PRICES HIGHER
NATURAL GAS PRICES AND IMPROVED MARKETING PROFITS CHEVRON EXPECTS TO
REPORT STRONGER OPERATING RESULTS FOR THE FOURTH QUARTER THAN A YEAR
EARLIER WHEN THE COMPANY HAD DEPRESSED OPERATING PROFIT OF ABOUT 283
MILLION NET INCOME FOR THE PERIOD AFTER VARIOUS RESTRUCTURING CHARGES WAS
39 MILLION OR 11 CENTS A SHARE ON REVENUE OF 1031 BILLION

THE OFFICIAL ALSO NOTED THAT CHEVRON EXPECTS TO REPORT FOR THE 1992 FOURTH
QUARTER A GAIN OF 375 MILLION AS THE RESULT OF A 117 BILLION SWAP OF
CHEVRON STOCK FOR OIL PROPERTIES WITH PENNZOIL CO AND A GAIN OF 190
MILLION FROM THE SALE OF COPPER MINING PROPERTIES IN CHILE 9301070162
930107 WESTINGHOUSE GETS BHP PACT

PITTSBURGH WESTINGHOUSE ELECTRIC CORP SAID ITS GLADWIN CORP UNIT WON A
35 MILLION CONTRACT FROM AUSTRALIA'S BROKEN HILL PROPRIETARY LTD TO
SERVICE PARTS OF A STEEL MILL IN AUSTRALIA

THE MAKER OF ELECTRICAL EQUIPMENT SAID THE CONTRACT WHICH WILL SPAN FIVE
YEARS IS FOR BHP'S PORT KEMBLA STEELWORKS 9301070161 930107 WOLOHAN
LUMBER SALES RISE 20

SAGINAW MICH WOLOHAN LUMBER CO REPORTED DECEMBER SALES OF 228
MILLION UP 20 FROM 19 MILLION A YEAR EARLIER COMPARABLESTORE SALES ROSE
17

WOLOHAN LUMBER IS A LUMBER AND BUILDINGMATERIAL RETAILER 9301070160
930107 PEPPERAND SALT

I AM NOT TO BLAME

WHOSE EX IS BEING GORED 9301070159 930107 GE GETS GREEK AIR FORCE ORDER

FAIRFIELD CONN GENERAL ELECTRIC CO SAID IT RECEIVED A 200 MILLION
ORDER FROM THE GREEK AIR FORCE FOR ITS F110GE129 FIGHTER ENGINES

DELIVERY OF 46 F110 ENGINES BEGINS IN 1996 AND CONTINUES THROUGH 1998 THE
COMPANY SAID THE ENGINES WILL BE MADE AT THE GE AIRCRAFT ENGINES DIVISION
IN EVENDALE OHIO 9301070158 930107 WHO'S NEWS QUAKER STATE CORP

QUAKER STATE CORP OIL CITY PA LEE R FORKER THE 86YEAROLD FORMER
CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS MOTOR OIL AND LUBRICANTS
CONCERN RETIRED AS A DIRECTOR THE BOARD HASN'T NAMED A SUCCESSOR
9301070156 930107 CENTRAL MAINE POWER'S FINE

AUGUSTA MAINE CENTRAL MAINE POWER CO AGREED TO PAY THE STATE'S
DEPARTMENT OF ENVIRONMENTAL PROTECTION A 99950 FINE FOR FAILING TO GET
AIREMISSION LICENSES FOR THREE SMALL POWER PLANTS

THE THREE PLANTS ALL IN THE PORTLAND AREA ARE BACKUP GENERATORS EACH IS
USED ABOUT TWO WEEKS A YEAR THAT ARE OF A TYPE THAT USED TO NOT NEED
LICENSES SAID A COMPANY SPOKESMAN HE SAID THE COMPANY WAS UNAWARE OF A
1987 CHANGE IN ENVIRONMENTAL REGULATIONS MANDATING LICENSES ON SUCH
FACILITIES WHICH EMIT SULFUR DIOXIDE AND NITROUS OXIDE 9301070155 930107
USBANCORP PLANS SHARE OFFERING

PITTSBURGH USBANCORP FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO
ISSUE ONE MILLION COMMON SHARES IT WILL ALSO GRANT ITS UNDERWRITERS
OPPENHEIMER & CO AND LEGG MASON WOOD WALKER INC OVERALLOTMENT OPTIONS FOR
AN ADDITIONAL 150000 SHARES

AT RECENT TRADING PRICES OF 21 TO 22 A SHARE THE OFFERING WOULD BRING THE
BANK HOLDING COMPANY OVER 20 MILLION IN PROCEEDS USBANCORP HAS 29 MILLION
SHARES OUTSTANDING AND 36 MILLION SHARES ASSUMING FULL DILUTION
9301070154 930107 LETTERS TO THE EDITOR IDEOLOGIES SPOIL SCHOOLCHOICE
DEBATE

AS A MEMBER OF A LOCAL BOARD OF EDUCATION WHO HAS TO DEAL DAILY WITH THE
FORCES OF THE EVIL EDUCATION EMPIRE AS DESCRIBED BY CHESTER E FINN JR IN
HIS DEC 16 EDITORIAL PAGE ARTICLE THE EDUCATION EMPIRE STRIKES BACK IT
IS DISTRESSING TO FIND THAT MR FINN THINKS THAT I TOO AM THE ENEMY
APPARENTLY YOU'RE EITHER POLLY WILLIAMS OR CHRIS WHITTLE OR YOU'RE THE
PROBLEM

MR FINN FAVORS SCHOOL CHOICE THOUSANDS OF SCHOOL DISTRICTS ACROSS THE
COUNTRY HAVE ADOPTED INTRADISTRICT SCHOOL CHOICE PLANS BUT MOST
CONSUMERS DON'T WANT CROSSDISTRICT CHOICE THAT PUTS EDUCATION DOLLARS
INTO TRANSPORTATION RATHER THAN CLASSROOMS IN MY SCHOOL DISTRICT THE
VOTERS TURNED DOWN FORCED SCHOOL CHOICE BY A MARGIN OF 101

MR FINN FAVORS NATIONAL TESTING EVERY SCHOOL DISTRICT I KNOW ABOUT HAS
BEEN WORKING DILIGENTLY TO DEFINE CURRICULUM ENSURE ITS DELIVERY AND
EVALUATE THE RESULTS WE ALREADY HAVE A PLETHORA OF STATE AND LOCAL TESTS TO
GIVE US A MEASURE

MR FINN WANTS INNOVATION MY SCHOOL DISTRICT IS MOVING DELIBERATELY AND
INEXORABLY TOWARD AN ADMINISTRATIVE MODEL THAT EMPOWERS PRINCIPALS
TEACHERS STUDENTS AND PARENTS IN LOCAL SCHOOLS TO CREATIVELY ORGANIZE
THEMSELVES TO TEACH EFFECTIVELY TOPDOWN EDUCATION SYSTEMS ARE NEARLY
EXTINCT

MR FINN SAYS RESOURCES AREN'T EVERYTHING TRUE BUT WHEN RESOURCES ARE USED
FOR PRESCHOOL EDUCATION AND FAMILY INTERVENTION THEY CAN MAKE A TREMENDOUS
DIFFERENCE AND SINCE I'M ASKING THE EMPLOYEES OF MY SCHOOL DISTRICT EVERY
DAY TO DO MORE WORK IN LESS TIME AND STILL DO IT BETTER I DON'T THINK
THEY'RE OVERPAID

TAKE HEART MR FINN SCHOOL BOARDS ALL OVER THE NATION HEAR YOUR
COMPLAINTS RECOGNIZE THE PROBLEMS AND ARE WORKING ON SOLUTIONS IF YOU
SUCCEED IN SWEEPING US ALL AWAY YOU'LL LOSE SOME OF THE BEST ALLIES YOU'VE
GOT

MR FINN'S ARTICLE IS SYMPTOMATIC OF MUCH OF WHAT IS WRONG WITH THE
EDUCATION DEBATE TODAY THE DEBATE IS LARGELY DOMINATED BY TWO IDEOLOGICAL
CAMPS THAT SPEND MUCH OF THEIR ENERGIES DEMONIZING THE OTHER

IRONICALLY DRIVING HOME THE NIGHT BEFORE READING FINN'S ARTICLE I LISTENED
TO A BROADCAST OF A TALK BY JONATHAN KOZOL HE WAS JUST AS NASTY TO HIS
IDEOLOGICAL ENEMIES AS WAS MR FINN TO HIS DESCRIBING THEM REPEATEDLY AS
MEAN AND SMART

ONE GETS THE FEELING THAT EACH SIDE ON THE ISSUE IS MORE INTERESTED IN
IMPUGNING THE GOOD FAITH OF THE OTHER THAN IN FINDING PRACTICAL SOLUTIONS
THAT WILL REALLY HELP THE EDUCATION OF CHILDREN IN THIS BATTLE EACH CLAIMS
TO HAVE THE WHOLE TRUTH AND CONCEDES NOTHING TO THE OPPOSITION

BETWEEN THESE IDEOLOGICAL WARLORDS THE ISSUE OF PRIVATE SCHOOL CHOICE HAS
BECOME A KIND OF GREEN LINE SEPARATING FRIEND FROM FOE WHICH ONE CROSSES
AT ONE'S PERIL SINCE ONE CAMP REGARDS CHOICE AS WHOLLY GOOD AND THE OTHER
REGARDS IT AS AN UNALLOYED EVIL NEITHER HAS AN INCENTIVE TO SWEAT THE
DETAILS IN DESIGNING A CHOICE PLAN

BY POLARIZING THE CHOICE ISSUE THE IDEOLOGUES ON BOTH SIDES HAVE OBSCURED
HOW CHOICE CAN BE USED TO STRENGTHEN OUR PUBLIC SCHOOLS LET ME SUGGEST A
FEW OF THE WAYS THAT CHOICE CAN BE USED TO HELP THE PUBLIC SCHOOLS RATHER
THAN TRASH THEM

 THERE IS WIDE AGREEMENT THAT IMPROVING PUBLIC SCHOOLS DEPENDS ON
EMPOWERING THE SCHOOLS THEIR TEACHERS AND PRINCIPALS RATHER THAN THE
CENTRAL BUREAUCRACY TO MAKE MAJOR DECISIONS ABOUT THE SCHOOLS' PROGRAMS
BUT PUBLIC SCHOOL CHOICE IS A PREREQUISITE FOR TRUE EMPOWERMENT IF THE
SCHOOLS ARE EMPOWERED TO DEVELOP UNIQUE IDENTITIES THEN PARENTS MUST BE
ABLE TO SELECT A SCHOOL THAT FITS THEIR VALUES AND BELIEFS ABOUT EDUCATION

 IN A TIME OF INCREASING AUSTERITY FOR BIGCITY SCHOOLS CHOICE CAN BE
USED TO TAKE SOME OF THE FINANCIAL PRESSURE OFF THE PUBLIC SCHOOL SYSTEM
THE MILWAUKEE SCHOOL CHOICE PROGRAM HAS ONLY 617 PARTICIPATING STUDENTS
FOUR AT DOWNTOWN MONTESSORI SCHOOL WHICH I SERVE AS PRESIDENT YET
CONSIDERING THE DIFFERENCE BETWEEN THE AVERAGE PUBLIC SCHOOL EXPENDITURE PER
STUDENT AND THE CHOICE PROGRAM PAYMENTS I CALCULATE THAT THIS PROGRAM HAS
FREED UP MORE THAN 2 MILLION ANNUALLY FOR THE PUBLIC SCHOOLS

 CHOICE CAN BE USED TO KEEP OPTIONS OPEN FOR PUBLIC SCHOOL SYSTEMS A
CURRENT EXAMPLE OCCURS IN MILWAUKEE WHERE THE SUPERINTENDENT HAS PROPOSED A
REFERENDUM TO BUILD NEW SCHOOL FACILITIES STARTING WITH AN UNCONTESTED NEED
TO MAKE UP FOR DEFERRED MAINTENANCE THIS PLAN HAS MUSHROOMED TO INCLUDE THE
CONSTRUCTION OF 15 NEW SCHOOLS AT A TIME WHEN THE DIRECTION OF PUBLIC
SCHOOLS IS UNDER INTENSE DEBATE CHOICE OFFERS AN ALTERNATIVE TO BUILDING
MORE PUBLIC SCHOOLS THAT MAY BECOME OBSOLETE IN A FEW YEARS

 THE MOST IMPORTANT FACTOR DETERMINING THE CONTINUED VIABILITY OF BIGCITY
PUBLIC SCHOOLS IS THE VIABILITY OF THE CITIES SUPPORTING THEM NOT ONLY CAN
CHOICE PROGRAMS HELP AMELIORATE THE BURDEN ON THE TAX BASE BUT A VARIETY OF
EDUCATIONAL OPPORTUNITIES INCLUDING PRIVATE AND PAROCHIAL SCHOOLS MAKES
LIVING IN THE CITY A MORE ATTRACTIVE CHOICE FOR MANY PARENTS EVEN IF THEY
SEND THEIR CHILDREN TO PUBLIC SCHOOLS THEY KNOW THEY HAVE OPTIONS IF THE
PUBLIC SCHOOLS ARE NOT WORKING FOR THEIR CHILDREN SEVERAL OF THE PRIVATE
SCHOOLS PARTICIPATING IN THE MILWAUKEE CHOICE PROGRAM HAVE A PARTICULAR
COMMITMENT TO THEIR INNERCITY NEIGHBORHOODS

PUBLIC SCHOOLS ARE SUFFERING FROM THE SAME AILMENTS AS MANY OTHER LARGE
ORGANIZATIONS REFLECTING A TENDENCY BY ORGANIZATIONS TO TURN INWARD AND
SERVE THEIR OWN BUREAUCRATIC NEEDS RATHER THAN THOSE OF THEIR CUSTOMERS
PROFITMAKING ORGANIZATIONS ARE NOT IMMUNE TO THIS TENDENCY BUT COMPETITION
MAY EVENTUALLY CATCH UP TO THEM AS FORMER EMPLOYEES OF GENERAL MOTORS IBM
AND SEARS AMONG OTHERS CAN ATTEST CHOICE CAN BE ONE POWERFUL TOOL IN
REFORMING PUBLIC EDUCATION BUT IT IS NOT A PANACEA

MR FINN DECLARES THAT THE VOTERS OF PENNSYLVANIA AND MICHIGAN RETURNED TO
CAPITOL HILL THE BARONS OF THE HOUSE EDUCATION AND LABOR COMMITTEE MEN WHO
HAVE BLOCKED EFFORTS TO CREATE NATIONAL STANDARDS NATIONAL TESTS AND A
PILOT FEDERAL VOUCHER PROGRAM AS THE PENNSYLVANIA MEMBER IN QUESTION I
CAN TELL YOU THIS SIMPLY IS NOT TRUE

FIRST I WAS NOT ENDORSED FOR REELECTION BY THE MAJOR EDUCATION
ORGANIZATIONS PRIMARILY BECAUSE I DON'T ALWAYS AGREE WITH THEM AND
SUPPORT THEIR POSITION ON EDUCATION ISSUES

SECOND AS YOU AND YOUR READERS MAY BE AWARE I DID NOT SUPPORT THE
EDUCATION REFORM BILL UNDER CONSIDERATION THE PAST TWO YEARS THIS WAS NOT A
BIPARTISAN BILL BY THE TIME IT REACHED THE FLOOR OF THE HOUSE AND ONE OF THE
REASONS IT WAS NOT A BIPARTISAN BILL WAS THAT I AND MOST OF THE MINORITY
MEMBERS ON THE EDUCATION AND LABOR COMMITTEE FELT IT WAS NOT A TRUE REFORM
BILL

IF YOU WILL LOOK CLOSELY AT MY SUBSTITUTE BILL YOU WILL SEE IT CONTAINS
LANGUAGE ON STANDARDS AND TESTING AND INCLUDES SCHOOL CHOICE AS A REFORM
OPTION THAT CAN BE USED BY LOCAL SCHOOL DISTRICTS RECEIVING FUNDS TO
UNDERTAKE EDUCATIONAL REFORM IT ALSO INSURES COMMUNITY INVOLVEMENT IN THE
DEVELOPMENT OF AN EDUCATIONAL REFORM PACKAGE A KEY ELEMENT FOR ANY REFORM
EFFORT IF IT IS GOING TO SUCCEED IT DOES NOT CONTAIN SCHOOL DELIVERY
STANDARDS

I BELIEVE THE FEDERAL ROLE HAS TO BE ONE OF ENCOURAGING REFORM AND OF SEEING
HOW CURRENT FEDERAL EDUCATION PROGRAMS CAN BECOME A PART OF AN OVERALL
EDUCATIONAL REFORM PLAN FOR OUR NATION IT IS MY INTENTION TO WORK TOWARD
THIS GOAL AS THE COMMITTEE ON EDUCATION AND LABOR UNDERTAKES A REVISION OF
THE MAJOR ELEMENTARY AND SECONDARY EDUCATION PROGRAMS IN THE 103RD CONGRESS
9301070153 930107 LETTERS TO THE EDITOR COMPUTER AVOIDANCE MAKES THE
JOB HARDER

IN REFERENCE TO PETER DRUCKER'S DEC 1 EDITORIAL PAGE ARTICLE BE DATA
LITERATE KNOW WHAT TO KNOW I WAS SURPRISED TO DISCOVER THAT COMPUTER
STORED DATA WAS STILL NOT BEING PROPERLY USED BY MODERN BUSINESS

I WORKED AS A PETROLEUM GEOLOGIST FOR ABOUT 33 YEARS AND BECAME COMPUTER
LITERATE FOR THE LAST 15 YOU CAN'T IMAGINE THE FRUSTRATION MY COMPANY HAD
ONE OF THE BEST RETRIEVAL REPORT AND MAP GENERATING SYSTEMS IN THE
BUSINESS BUT YOU COULDN'T GET ANYONE TO USE IT THE EXECUTIVES THOUGHT THEY
WERE BEING REDUCED TO THE LEVEL OF TYPISTS IF THEY PUT THEIR HANDS ON A
COMPUTER AND THE EXPLORATION AND PRODUCTION GEOLOGISTS SAW THE COMPUTER AS
A THREAT TO THEIR JOBS THEY WOULD SPEND WEEKS MANUALLY SEARCHING THE FILES
TO RETRIEVE GEOLOGICAL DATA THAT COULD BE OBTAINED LITERALLY IN SECONDS AT A
COMPUTER CONSOL THEY CONTINUED TO CONSTRUCT AND USE ONLY MANUALLY BUILT
STRUCTURE MAPS WHEN THE COMPUTER WAS CAPABLE OF MAPPING TEMPERATURE
PRESSURE SALINITY ETC OTHER KINDS OF MAPS THAT WEREN'T PRACTICAL TO
BUILD MANUALLY BUT WOULD EXPAND THEIR UNDERSTANDING OF THE SUBSURFACE AND
HELP FIND NEW ACCUMULATIONS OF HYDROCARBONS 9301070152 930107 POLITICS &
POLICY BROWN NOMINEE FOR CABINET POST DEFENDS PAST WORK  BY
BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON COMMERCE SECRETARY NOMINEE RONALD BROWN THE FIRST OF
PRESIDENTELECT CLINTON'S CABINET CHOICES TO FACE CONFIRMATION HEARINGS
DEFENDED HIS WORK AS A LOBBYIST AND VOWED TO TRANSFORM THE LETHARGIC AGENCY
INTO A TRADE AND TECHNOLOGY POWERHOUSE

MR BROWN IS ONE OF THE MOST CONTROVERSIAL APPOINTMENTS BECAUSE OF HIS PRIOR
LOBBYING FOR THE REPRESSIVE GOVERNMENT OF HAITI AND A GAGGLE OF JAPANESE
ELECTRONIC COMPANIES AND OTHER ALLEGED INFLUENCE PEDDLING IN ADDITION
REPUBLICAN LEADERS HAVE PROMISED TO TAKE A HARD LOOK AT POTENTIAL CONFLICTS
OF INTEREST

BUT YESTERDAY'S QUESTIONING BY THE SENATE COMMERCE COMMITTEE WAS POLITE AND
SUPPORTIVE EVEN REPUBLICANS TOSSED THE NOMINEE A SERIES OF SOFTBALL
QUESTIONS NONE INDICATED PROBLEMS WITH THE BROWN APPOINTMENT THERE'S NO
DOUBT IN MY MIND YOU'RE QUALIFIED BY EXPERIENCE AND BACKGROUND SAID
MISSISSIPPI SEN TRENT LOTT WHO HAS TAKEN A LEAD ROLE IN COORDINATING THE
GOP'S REVIEW OF MR CLINTON'S CHOICE

MR LOTT DID QUIZ MR BROWN ABOUT HIS LOBBYING ACTIVITIES DURING THE
THREEHOUR HEARING TELLING THE DEMOCRATIC PARTY CHAIRMAN THAT HIS LOBBYING
AND FUNDRAISING ACTIVITIES PERHAPS SEND THE WRONG MESSAGE PARTICULARLY
GIVEN THAT MR CLINTON HAD CAMPAIGNED AGAINST WASHINGTON INFLUENCE PEDDLERS
IT SENDS THE RIGHT MESSAGE COUNTERED MR BROWN IT SENDS THE MESSAGE I'M
A GOOD ADVOCATE WHO GETS THINGS DONE

MR BROWN IS A PARTNER IN THE POWERFUL LOBBYING FIRM OF PATTON BOGGS &
BLOW AND FIRST REGISTERED AS A LOBBYIST FOR HAITI IN 1982 HE SAID HE TOLD
THE HAITIAN GOVERNMENT TO CHANGE ITS ACT REGARDING HUMAN RIGHTS AND
CONSIDERABLE PROGRESS WAS MADE NONE OF THE LAWMAKERS CHALLENGED HIM ON
THAT ASSERTION

IN TELEPHONE INTERVIEWS ERNEST PREEG FORMER US AMBASSADOR TO HAITI FROM
1981 TO 1983 CALLED MR BROWN A POSITIVE INFLUENCE IN TRYING TO GET THE
HAITIAN GOVERNMENT TO CHANGE DIRECTION BUT GEORGE FAURIOL DIRECTOR OF THE
AMERICAS PROGRAM AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES SAID
THAT HAITI'S RECORD DIDN'T IMPROVE AFTER 1982 HUMAN RIGHTS AND THE ECONOMY
BEGAN TO DETERIORATE IN THE EARLY '80S HE SAID

MR BROWN ALSO DEFENDED HIS LOBBYING FIRM'S REPRESENTATION OF BANK OF CREDIT
& COMMERCE INTERNATIONAL AND SAID HE WASN'T PERSONALLY INVOLVED IN THAT
ACCOUNT BCCI A UNIT OF BCCI HOLDINGS LUXEMBOURG IS ACCUSED OF
SYSTEMATICALLY BRIBING LEADERS THROUGHOUT THE WORLD LAUNDERING MONEY
BREAKING BANK REGULATIONS AND HELPING DRUG DEALERS

SEPARATELY HE CALLED SUGGESTIONS THAT HE HAD INTERVENED WITH NEW YORK CITY
TO STEER A 210 MILLION CONTRACT TO A COMPANY HE WAS AFFILIATED WITH
TOTALLY FALSE PRESS ACCOUNTS HAVE RAISED THE QUESTION OF WHETHER MR
BROWN A CLOSE FRIEND OF NEW YORK MAYOR DAVID DINKINS CHOSE MANHATTAN AS
THE SITE FOR THE DEMOCRATIC NATIONAL CONVENTION AS AN INDUCEMENT FOR THE
CONTRACT

THE NOMINEE ALSO PLAYED DOWN HIS WORK FOR SUCH JAPANESE ELECTRONICS
COMPANIES AS SONY CORP AND TOSHIBA CORP HE SAID HE REPRESENTED THE
AMERICAN SUBSIDIARIES OF JAPANESE COMPANIES AND ARGUED THAT THE EXPERIENCE
SHOULD HELP HIM AT THE COMMERCE DEPARTMENT

REPUBLICAN SEN ALFONSE D'AMATO OF NEW YORK TESTIFIED ON BEHALF OF MR
BROWN AND REPUBLICAN SEN ROBERT PACKWOOD OF OREGON CHIMED IN LATER THAT
LOBBYING WAS A FINE CALLING BOTH SENATORS HAVE BEEN DOGGED BY ALLEGATIONS
OF ETHICAL MISCONDUCT

ACCORDING TO A LETTER FROM THE COMMERCE DEPARTMENT GENERAL COUNSEL'S OFFICE
MR BROWN AGREED TO DISQUALIFY HIMSELF FOR ONE YEAR FROM MATTERS AFFECTING
PATTON BOGGS AND FROM THOSE AFFECTING HIS CURRENT CLIENTS DURING THE
HEARING HOWEVER MR BROWN APPEARED TO INTERPRET THE AGREEMENT NARROWLY
FOR INSTANCE HE SAID HE WOULD DISQUALIFY HIMSELF FROM COPYRIGHT QUESTIONS
INVOLVING VIDEOCASSETTE RECORDERS BECAUSE HE HAD REPRESENTED JAPANESE
COMPANIES ON THAT ISSUE BUT HE SAID HE WOULDN'T DISQUALIFY HIMSELF ON OTHER
ISSUES INVOLVING VCRS EVEN IF THEY INVOLVED FORMER CLIENTS

CHARLES LEWIS EXECUTIVE DIRECTOR OF THE CENTER FOR PUBLIC INTEGRITY A
RESEARCH GROUP ON GOVERNMENT ETHICS ARGUED THAT ONE YEAR WASN'T ENOUGH
THE QUESTION IS WHETHER PATTON BOGGS WILL GET PREFERENTIAL TREATMENT FROM
COMMERCE BECAUSE EMPLOYEES KNOW RON CAME FROM THERE

MR BROWN TOLD LAWMAKERS THAT HE WOULD RESIGN FROM PATTON BOGGS ON
INAUGURATION DAY THE JAN 20 DATE ON WHICH THE COMMITTEE ALSO EXPECTS TO
VOTE ON MR BROWN'S NOMINATION HE ACKNOWLEDGED THAT HIS PARTNERSHIP
INTEREST WAS WORTH MORE THAN 1 MILLION BUT WHEN SEN LOTT ASKED FOR A COPY
OF THE SEVERANCE AGREEMENT MR BROWN DIDN'T MAKE A COMMITMENT TO PRODUCE
ONE

ON SUBSTANTIVE MATTERS CONCERNING THE COMMERCE DEPARTMENT THE 51YEAROLD
NOMINEE SAID THE DEPARTMENT WOULD SET TRADE POLICY FOR THE ADMINISTRATION
AND TAKE AN ACTIVIST ROLE IN TECHNOLOGY DEVELOPMENT BUT HE REVEALED FEW
DETAILS OF HIS TRADE POSITIONS OTHER THAN TO SAY THE US SHOULD ENFORCE
EXISTING LAWS BETTER INDEED WHAT HE DIDN'T SAY WAS MORE SIGNIFICANT THAN
WHAT HE DID

IN A WRITTEN RESPONSE TO COMMITTEE QUESTIONS MR BROWN BLAMED THE TRADE
DEFICIT WITH JAPAN MAINLY ON THE US BUDGET DEFICIT NOT JAPANESE TRADE
PRACTICES HE ALSO FAILED TO MENTION SUPER 301 A LAPSED PROVISION OF US
TRADE LAW THAT TARGETS FOREIGN COUNTRIES FOR RETALIATION IF THEIR TRADE
PRACTICES BLOCK US EXPORTS DURING HIS CAMPAIGN MR CLINTON SAID HE
SUPPORTED ITS REINSTATEMENT

AND WHILE THE NOMINEE BACKED THE CURRENT PRACTICE OF BLOCKING FOREIGN
PURCHASES OF US COMPANIES IF THEY HARM US SECURITY HE DIDN'T TALK OF
BROADENING THE BLOCKAGE CRITERIA TO INCLUDE ECONOMIC HARM AS MANY DEMOCRATS
WANT

BY DEMOCRATIC PARTY STANDARDS THAT WOULD PUT HIM IN THE FREE TRADE CAMP WE
SHOULDN'T DO ANYTHING TO LOCK OUT FOREIGN INVESTMENT HE SAID 9301070151
930107 COUNTERPOINT THE US LEADS OPERATION WRONG TARGET  BY
ANGELO CODEVILLA

OPERATION RESTORE HOPE IS LIKELY TO DO MORE HARM THAN GOOD BECAUSE IT WAS
CONCEIVED IN PART TO PRECLUDE A HARDER MISSION TO THE BALKANS AND BECAUSE
ESCORTING RELIEF CONVOYS BEGS ALL THE ESSENTIAL QUALITIES OF POLICY MAKING
THE BUSH TEAM THAT MADE THE POLICY AND THE CLINTON TEAM THAT APPROVED IT
HAVE SHED NONE OF THE PREJUDICES THAT MADE '60S FOREIGN POLICY SUCH A MESS
AND HAVE PICKED UP ADDITIONAL INCOMPETENCE ON THE WAY

HORRID AS THE SOMALI CIVIL WAR IS TO PEOPLE CAUGHT IN IT IT HAS NO WIDER
CONSEQUENCES CERTAINLY NOT FOR THE US BY CONTRAST SERBIA'S AMASSING OF
AN EVIL LITTLE EMPIRE IN THE HEART OF EUROPE MAY WELL HASTEN THE DAY WHEN
THE AMERICAN PEOPLE WILL HAVE TO DECIDE WHETHER TO GO TO WAR TO DEFEND
EUROPE

SERBIA'S DICTATOR SLOBODAN MILOSEVIC HAS ALREADY SHOWN THAT STARTING AN
ETHNIC WAR CAN HELP A COMMUNIST NOMENKLATURA SALVAGE THEIR STATUS WESTERN
EUROPE'S 340 MILLION PEOPLE HAVE ACCEPTED MR MILOSEVIC'S MOCKERY OF
DEMOCRATIC ELECTIONS IN THE NAME OF PEACE THEY ARE DENYING ARMS TO MR
MILOSEVIC'S VICTIMS AND ARE HAPPY ENOUGH TO LIVE WITH MASS MURDER RAPE AND
STARVATION CAMPS ON THEIR DOORSTEP WHEN THE US ORGANIZED THE EXPEDITION
TO SOMALIA IT ABETTED EUROPE'S FLIGHT FROM RESPONSIBILITY FOR ITS OWN
BACKYARD

HENCE RUSSIA'S COMMUNIST APPARATCHIKS WHO ARE NOW RECOUPING THEIR POWERS IN
MOSCOW AND HAVE ALREADY STARTED BORDER WARS IN GEORGIA AND MOLDOVA HAVE
REASON TO BELIEVE THAT THE WEST WOULD STAND BY IF THEY TRIED TO REASSERT
CONTROL OVER UKRAINE AND THE BALTICS AND THAT AFTERWARD EUROPE WOULD PAY
THEM PROTECTION MONEY WOULD THE AMERICAN PEOPLE LET EUROPE REAP THE
CONSEQUENCES OF ITS OWN IMPOTENCE PROBABLY NOT AT ANY RATE WE MAY SOON
FACE A DREADFUL CHOICE

US POLICY MAKERS CONSIDERED MILITARY OPTIONS IN BOSNIA NOFLY ZONES
ESCORTED RELIEF CONVOYS OR STRIKES ON SERBIAN ARTILLERY THE JOURNAL
PROPOSES ARMING THE BOSNIANS BUT THE ESSENCE OF THE PROBLEM IS MR
MILOSEVIC AND HIS GENERALS IN POWER IN BELGRADE ONLY MILITARY POWER CAN
BRING THEM TO TRIAL AS WAR CRIMINALS TURN SERBIA FROM ETHNIC WAR TO
DISMANTLING COMMUNISM AND GIVE INCENTIVES TO PEACE TO THOSE RUSSIANS WHO
NEED THEM MOST HOWEVER JUST AS IN THE GULF WAR US POLICY MAKERS AIMED
MILITARY POWER AT EVERYONE EXCEPT SADDAM HUSSEIN THEY NOW REFUSE TO AIM IT
AT THE MILOSEVIC REGIME

IN SOMALIA BY CONTRAST THERE IS NO ONE SET OF HUMAN BEINGS WHOSE DEATH OR
DEFEAT WOULD DO MUCH GOOD HENCE MILITARY POWER IS INHERENTLY LESS
MEANINGFUL HUNGER ITSELF IS ONLY A SYMPTOM THE PROBLEM AS IN MUCH OF THE
REST OF AFRICA IS NOTHING LESS THAN THE NONEXISTENCE OF NONCRIMINAL
ELEMENTS IN PUBLIC LIFE SOMALIS AND OTHER AFRICANS HAVE PLENTY OF LAND AND
THE TALENT TO LIVE FROM IT BUT THEY SUFFER BECAUSE THIEVING MURDEROUS
CLAIMANTS TO POWER TREAT THEM WORSE THAN DOMESTICATED ANIMALS WHAT CAN US
MILITARY FORCE DO ABOUT THIS

US TROOPS CAN TRY TO STICK TO THE MISSION PRESIDENT BUSH STATED MAKING
THE COUNTRY SAFE FOR THE DELIVERY OF RELIEF SUPPLIES HOWEVER THE DROUGHT
IS OVER SOMALI FARMS ARE PRODUCING AND TOO GREAT AN EMPHASIS ON RELIEF
WRECKS THE COUNTRY'S AGRICULTURAL BASE ONCE THE AMERICANS LEAVE AND THE
PREDATORS REVERT TO TYPE THE PEOPLE MAY BE WORSE OFF THAN EVER BUT TO THE
EXTENT THAT US TROOPS DISARM SOME SOMALIS RATHER THAN OTHERS AND DEAL
WITH ONE SET OF KILLERS WHILE BYPASSING OTHERS THEY EXPOSE THE US FOREIGN
POLICY ESTABLISHMENT'S INTELLECTUAL INADEQUACIES

RECALL THAT IN THE 1950S SOMALIA AND MOST OF WHAT WE GOT USED TO CALLING THE
THIRD WORLD EXPORTED FOOD AND WERE BEGINNING TO ENJOY THE BENEFITS OF
WESTERN CIVILIZATION INCLUDING SAFETY PROPERTY THE RULE OF LAW MEDICINE
MISSIONARIES AND EDUCATION BUT EUROPEAN LIBERALS CAME TO HATE THEIR OWN
CIVILIZATION BACKED BY BOTH THE US AND THE SOVIET UNION THEY HANDED A
LARGE PERCENTAGE OF HUMANITY TO A SET OF POLITICIANS WHOM HISTORIAN PAUL
JOHNSON CALLS THE BANDUNG GENERATION WHO WERE SUPPOSED TO SHOW WHAT GREAT
THINGS NONWESTERNERS COULD DO WHEN CARRYING OUT THE SCHEMES OF WESTERN
INTELLECTUALS FINANCED BY WESTERN TAXPAYERS HOWEVER NEARLY ALL
POSTCOLONIAL RULERS TURNED OUT TO BE MONSTERS AND DECOLONIZATION WAS A
DISASTER

THE US GOVERNMENT HAS NOT BEGUN TO RETHINK THE WISDOM OF ANTICOLONIALISM
EVEN AS CIRCUMSTANCES WERE FORCING US TROOPS TO DICTATE POLITICAL
OUTCOMES CONTRARY TO PRESIDENT BUSH'S PROMISE HIS ENVOY TO SOMALIA
AMBASSADOR ROBERT OAKLEY WAS MAKING IT CLEAR THAT THE US HAD LEARNED FROM
THE ILL EFFECTS OF FOLLOWING THE RECIPES OF POLITICAL SCIENTISTS IN VIETNAM
AND ELSEWHERE AND THAT IT HAS NO INTELLECTUAL COMPASS BY WHICH TO STEER
SOMALIA AS FOR BILL CLINTON'S LIBERALS ROOTED IN FASHIONABLE
MULTICULTURALISM IT IS EASIER TO IMAGINE THEM BRINGING THIRD WORLD VALUES
TO AMERICA THAN THE OTHER WAY AROUND AND SO THE US GOVERNMENT WILL PLAY
SORCERER'S APPRENTICE

THE CLINTON ADMINISTRATION IS LIKELY TO FOLLOW ITS PREDECESSOR IN INVOLVING
THE UNITED NATIONS RATHER THAN THE AMERICAN PEOPLE IN FORMULATING ITS
FOREIGN POLICY AND IN HIDING ITS JUDGMENTS BEHIND THE SUPPOSED MAJESTY OF
THE UN BUT THE MAJORITY OF THE UN'S MEMBER GOVERNMENTS ARE MORALLY
REPUGNANT FRUITS OF ANTICOLONIALISM THE CURRENT UN SECRETARYGENERAL IS
A PRODUCT OF EGYPT SHOULD AMERICANS DIE TO IMPOSE ON SOMALIA OR ON ANYPLACE
ELSE THE STANDARDS OF EGYPTIAN DEMOCRACY AND IMPARTIAL ADMINISTRATION
SHOULD THEY AS IN SOMALIA ENFORCE THE AGENDAS OF PRIVATE AGENCIES THAT
HAVE THE UN BUREAUCRACY'S EAR THE UN HAS NO LEGITIMACY WITH ORDINARY
PEOPLE ANYWHERE

OUR ONLY REALISTIC CHOICE IN SOMALIA AND IN ALL TOO MANY SIMILAR PLACES IS
EITHER TO LEAVE THEM TO THEIR MISERY OR TO REESTABLISH SOMETHING VERY MUCH
LIKE COLONIALISM BUT LENINIST ECONOMICS NOTWITHSTANDING BEARING WHAT USED
TO BE CALLED THE WHITE MAN'S BURDEN ENTAILED A NET EXPENDITURE OF RESOURCES
COLONIALISM IS AN ACT OF GENEROSITY AND IDEALISM OF WHICH ONLY RISING
CIVILIZATIONS ARE CAPABLE SINCE COLONIALISM IS ABOUT DICTATING POLITICAL
OUTCOMES OF WHICH WE CAN BE PROUD IT REQUIRES THE VERY OPPOSITE OF CULTURAL
AGNOSTICS LIKE GEORGE BUSH AND ROBERT OAKLEY NEVER MIND MR CLINTON'S
MULTICULTURALISTS

IT IS PERHAPS TOO MUCH TO EXPECT OUR POLITICIANS TO BE CHURCHILLS AND
KITCHENERS BUT A LITTLE SENSE OF OUR OWN SELF INTEREST AND A LITTLE MORE
ATTENTION TO THE FUNDAMENTALS OF INTERNATIONAL AFFAIRS WOULD HAVE BEEN
ENOUGH TO CONCLUDE THAT THE SUFFERING IN THE FORMER YUGOSLAVIA IS JUST AS
HUMANLY COMPELLING AS THAT IN SOMALIA THAT THE BALKANS' PROBLEMS ARE MORE
TRACTABLE BY US MILITARY POWER AND THAT THEIR ALLEVIATION IS LIKELIER TO
SAVE US BIGGER PROBLEMS DOWN THE ROAD

MR CODEVILLA IS A FELLOW AT STANFORD'S HOOVER INSTITUTION 9301070150
930107 WHO'S NEWS GREAT AMERICAN COMMUNICATIONS CO

GREAT AMERICAN COMMUNICATIONS CO CINCINNATI CARL H LINDNER RESIGNED
AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS OPERATOR OF TELEVISION AND
RADIO STATIONS HE WILL BE SUCCEEDED BY JOHN P ZANOTTI 44 YEARS OLD
PRESIDENT OF THE COMPANY'S TELEVISION GROUP THE COMPANY DIDN'T PROVIDE A
REASON FOR MR LINDNER'S RESIGNATION HE WASN'T AVAILABLE FOR COMMENT MR
LINDNER 73 WILL REMAIN CHAIRMAN OF AMERICAN FINANCIAL CORP GREAT AMERICAN
IS ONE OF SEVERAL CONCERNS AFFILIATED WITH AMERICAN FINANCIAL 9301070149
930107 BERKSHIRE HATHAWAY NOTES

OMAHA NEB BERKSHIRE HATHAWAY INC SAID IT COMPLETED ITS OPTIONAL
REDEMPTION OF ALL OF ITS ZEROCOUPON CONVERTIBLE NOTES DUE SEPT 28 2004

THE PROPERTY AND CASUALTY INSURER SAID HOLDERS OF ABOUT 1525 OF THE NOTES
CHOSE TO CONVERT THEM INTO BERKSHIRE HATHAWAY COMMON STOCK AS A RESULT THE
COMPANY'S COMMON STOCK OUTSTANDING INCREASED BY 6106 SHARES OR ABOUT 05
THE SHARES WERE QUOTED AT 11500 YESTERDAY DOWN 150 IN LATE COMPOSITE
TRADING ON THE NEW YORK STOCK EXCHANGE

THE REMAINING NOTES WITH A PRINCIPAL AMOUNT AT MATURITY OF 7649 MILLION
WERE REDEEMED FOR 4047 MILLION ZEROCOUPON SECURITIES ARE SOLD AT A DEEP
DISCOUNT AND REACH FULL VALUE AT MATURITY 9301070148 930107 IBM OUTLINES
 NEW YORK AREA STAFF CUTBACKS  SHARP JOB REDUCTIONS SET AS THE
COMPANY CLINGS TO NOLAYOFF POLICY  BY LAURENCE HOOPER STAFF
REPORTER OF THE WALL STREET JOURNAL

INTERNATIONAL BUSINESS MACHINES CORP GAVE DETAILS ABOUT SHARP CUTBACKS IN
NEW YORK'S HUDSON VALLEY EDGING CLOSER TO MAKING LAYOFFS IN AN AREA THAT
WAS THE CRADLE OF ITS MODERNDAY BUSINESS

AS PART OF ITS PLAN TO CUT 25000 WORKERS THIS YEAR IBM SAID 3000 TO 3500
EMPLOYEES WOULD LEAVE THREE OF THE COMPANY'S NEW YORK PLANTS EAST
FISHKILL POUGHKEEPSIE AND KINGSTON AT THE END OF THE CURRENT QUARTER
TOGETHER THE PLANTS CURRENTLY EMPLOY ABOUT 21500 WORKERS

IBM SAID IT HOPES IT CAN KEEP ALIVE ITS HALLOWED FULL EMPLOYMENT TRADITION
BY ACHIEVING ALL THE CUTS THROUGH VOLUNTARY INCENTIVE PROGRAMS AVAILABLE
UNTIL MARCH 5 BUT BIG BLUE SIGNALED THAT THIS IS AN UNLIKELY OUTCOME AND
SAID ITS FIRST LAYOFFS IN A HALFCENTURY COULD COME IN EAST FISHKILL DURING
THE SECOND QUARTER

THE NEWS HAD BEEN EXPECTED ALL THREE FACILITIES ARE CLOSELY ASSOCIATED WITH
IBM'S MAINFRAMECOMPUTER OPERATION WHICH WAS TARGETED FOR THE COMPANY'S
HARSHEST CUTS EAST FISHKILL SUPPLIES THE CHIPS THAT SERVE AS BRAINS FOR
MAINFRAMES WHILE POUGHKEEPSIE AND KINGSTON DEVELOP AND MAKE THE BULKY
MACHINES

EAST FISHKILL WILL TAKE THE BRUNT OF THE LATEST CUTBACKS POSSIBLY LOSING AS
MANY AS 2500 OF ITS 9200 WORKERS AN IBM SPOKESWOMAN SAID

MAINFRAMES ARE STILL IBM'S MAINSTAY AS WELL AS THE ECONOMIC BULWARK OF THE
MIDHUDSON VALLEY REGION NORTH OF NEW YORK CITY BUT THE MACHINES ARE FAST
SLIPPING OUT OF VOGUE AS CUSTOMERS PLACE MORE EMPHASIS ON COMPUTERS THAT USE
THE TYPE OF MICROCHIPS FOUND IN PCS AND WORKSTATIONS IBM HAS SAID IT WANTS
TO SHIFT RESOURCES AWAY FROM MAINFRAMES TO CONCENTRATE ON MORE PROMISING
AREAS

MEANWHILE INVESTORS CONTINUED PUNISHING THE COMPUTER GIANT'S STOCK
YESTERDAY SENDING IT PAST ITS RECENT 11YEAR LOWS AND DOWN TO LEVELS IT
HASN'T SEEN SINCE 1975 IBM'S SHARES FINISHED AT 48 DOWN 875 CENTS IN
TRADING ON THE NEW YORK STOCK EXCHANGE

SOME TRADERS AND ANALYSTS SAID THE MOVE WAS PROMPTED BY FEARS THAT IBM WILL
CUT ITS 484ASHARE ANNUAL DIVIDEND BY MORE THAN THE 50 THAT IS WIDELY
EXPECTED AND WORRIES THAT ITS FOURTHQUARTER RESULTS DUE JAN 19 WILL BE
EVEN WORSE THAN EXPECTED 9301070146 930107 BRIERLEY INVESTMENTS LTD

WELLINGTON NEW ZEALAND BRIERLEY INVESTMENTS LTD IN A JOINT VENTURE
WITH INDIGENOUS MAORI INTERESTS SAID IT COMPLETED A PREVIOUSLY ANNOUNCED
PURCHASE OF FISHING COMPANY SEALORD PRODUCTS LTD

THE COMPANY AND MAORI INTERESTS WILL HOLD EQUAL SHARES IN THE VENTURE

THE SALE OF THE FORMER CARTER HOLT HARVEY LTD FISHING UNIT WAS ANNOUNCED IN
MIDNOVEMBER AT A PRICE AROUND 350 MILLION NEW ZEALAND DOLLARS US1777
MILLION

BRIERLEY INVESTMENTS IS A HOTEL AND INVESTMENTS CONCERN WHILE CARTER HOLT
IS A FORESTRY CONCERN 9301070145 930107 LEISURE & ARTS GARDENING 
COTTAGE INDUSTRY FOR COTTAGE GARDENERS  BY PATTI HAGAN

IT'S COMMON OVERTHEFENCE KNOWLEDGE THAT AMERICAN GARDENERS ARE UP TO THEIR
SECATEURS IN BOOKS ON ENGLISH COTTAGE GARDENS AND THEIR PERENNIAL PATRON
SAINT GERTRUDE JEKYLL BUT TOO MANY PUBLISHERS OF GARDEN BOOKS DON'T YET
GET IT THE WELLMEANING REVIEWER OF SUCH OFFSEASON VOLUMES COULD TRY TO
PAPER OVER THE GLUT BUT OF LATE THERE ARE JUST TOO MANY JEKYLLS TO HIDE

VIKING DIDN'T GET IT IN 1992 AND WE GOT GERTRUDE JEKYLL 324 PAGES 25
SALLY FESTING STUDIOUSLY 36 PAGES SOLID FOOTNOTES PAINTS AN IMPASTO BIO OF
SMOOTHLY BUNNED JEKYLL SHE WAS A PERSON OF STRONG INSTINCTS AND THERE
IS NO REASON WHY SHE SHOULD NOT HAVE BEEN SUSCEPTIBLE TO MASCULINE BEAUTY IN
LIFE AS WELL AS IN PAINTINGS

LITTLE BROWN DIDN'T GET IT EITHER AND WE GOT THE GARDENS OF GERTRUDE
JEKYLL 192 PAGES 45 BY RICHARD BISGROVE YET ANOTHER COLLECTION OF
JEKYLL'S SPLENDID GARDEN PLANS WATERCOLORED AND SYMBIOTICALLY ARRANGED WITH
150 PRETTY PIX OF JEKYLLESQUE GARDENS

NOR DID NORTON GET IT CHARGING 50 BUCKS TO TAKE US DOWN AN ACUTELY WORN
PATH IN ENGLISH COTTAGE GARDENING FOR AMERICAN GARDENERS 240 PAGES
PHOTOGRAPHED AND WORDEDOUT BY AN AMERICAN MARGARET HENSEL THIS WAS NOT
GOING TO BE MERELY A CUTE BOOK ON ROSECOVERED THATCHED COTTAGES MS
HENSEL PROMISES SOME READERS MAY OVERDOSE ON ENCOUNTERS WITH SUCH
OVERFERTILIZED WORDS AS PICTURESQUE ROMANTIC DELIGHTFUL EXUBERANT
OLDFASHIONED CHARM WELL MULCHED WITH CLICHES AND TYPOS

THE AUTHOR HOPES THAT READERS OF THIS BOOK WILL FEEL MOVED AFTER
LOOKING AT ALL 200 PHOTOS ALL SHOT USING NIKON EQUIPMENT WITH FILM ALL
KODAK TO MAKE THEIR OWN PICTURESQUE ROMANTIC COTGARDENS WHERE EACH
PLANT HAS A PLACE IN YOUR HEART AND LOVE MEANS NOT EVER HAVING TO SAY
YOU'RE SORRY

HAPPILY A FEW PUBLISHERS DID GET IT SUPERMAN LEFT US BUT EARTHMAN CAME
BACK VIA HOUGHTON MIFFLIN ONE MAN'S GARDEN 2195 ARRIVES 11 YEARS
AFTER THE ESSENTIAL EARTHMAN 262 PAGES OF WORDPERFECT HENRY MITCHELL
WONDERFULLY COMPOSTED BEAUTIFULLY COMPOSED PICARESQUE GREENTHOUGHT

IT MAY EVEN BE THAT HENRY MITCHELL IS MARK TWAIN IT IS ABSURD TO SPRAY
ROSES I GIVE THEM MANURE  REASONABLE ATTENTION IF THEY SUCCUMB TO
BLACK SPOT THEY CAN DIE AND GOOD RIDDANCE CERTAINLY MR MITCHELL WILL
NEVER BE A TENNESSEE YANKEE IN ANY KING'S PARTERRE DE BRODERIE THERE IS
NO GARDEN IN ENGLAND OR FRANCE I ENVY AND NOT ONE I'D SWAP FOR MINE THIS
IS THE AIM OF GARDENING NOT TO MAKE US COMPLACENT IDIOTS EXACTLY BUT TO
MAKE US CONTENT AND CALM FOR A TIME  IT'S ALL RIGHT FOR FANCY PEOPLE
TO HEAD FOR LUSH PLACES BUT A GARDENER SHOULD STAY STEADY AND STAY HOME

AT HOME MR MITCHELL MAKES AN EARNEST PRO BONO ATTEMPT AT SEX ED IN APPLES
AND OTHER PLANTS APPLE SEX HE EXPLAINS OPERATES VERY MUCH AS SEX IN
HUMANS DOES EXCEPT FOR GRAFTED TREES WHICH BYPASS SEX OTHERWISE IF
YOU GROW AN APPLE FROM SEED YOU ARE GETTING INTO SEX AND APPLES ARE
FRUITS BABIES PRODUCED AS A RESULT OF SEXUAL ACTIVITY SEX IS RESPONSIBLE
FOR THE MONGREL NATURE OF ALL HUMANS AND OF MOST GARDEN FLOWERS IN SUCH
WISE EARTHMAN EFFORTLESSLY ENTERTAINS IN A 100 PHOTOFREE WORDBOOK

NOW TO MARY MARY QUITE CONTRARY WHO DOES YOUR GARDEN GROW EARL'S EYE
PUBLISHING 168 PAGES 2195 ALEX PANKHURST'S OFFBEAT ZESTFULLY
ECCENTRIC LITTLE TRACT ABOUT PEOPLE WHO HAVE BECOME FAMOUS AS PLANTS
HAVING STUDIED THIS FACTCHARMING WHOGREWIT MARY CAN NOW MAKE PROPER
NAMEDPLANT INTRODUCTIONS

ASKED WHO WAS THE LADY BEHIND THE DARK PINK GALLICA ROSE EMPRESS
JOSEPHINE' MARY CAN ANSWER WITH SANGFROID NAPOLEON'S ROSEBESOTTED
EMPRESS MARIE JOSEPHINE ROSE TASCHER DE LA PAGERIE SHE HIRED REDOUTE TO DO
WATERCOLORS OF HER 200 ROSES AT MALMAISON AND WHO PRAY TELL WAS MADAME
HARDY' SHE OF THE FRAGRANT ROSE BLANCHE WIFE TO MONSIEUR HARDY
LUXEMBOURG GARDENS SUPERINTENDANT PARIS 1832 CITE MR PANKHURST MADAME
HARDY WHO WHEN ALIVE MUST HAVE LIVED IN HER HUSBAND'S SHADOW HAS THUS
ACHIEVED IMMORTALITY AT LEAST IN NAME

THANKS TO PANK YOU CAN DISH THE DIRT ON ELLEN WILLMOTT' OR MISS
WILLMOTT' THE CAMPANULA THE ERYNGIUM THE ROSE THE SCABIOSA THE VERONICA
AND ONE OF THE GREAT CHARACTERS OF BRITISH GARDENING  BUT NOT BY ALL
ACCOUNTS TERRIBLY LIKEABLEJUST TERRIBLY RICH HER ESTATE REQUIRED THE
ATTENTIONS OF 104 UNIFORMED GARDENERS SHE FINANCED PLANT HUNTERS ON
SAFARI

AND WHAT OF THE CROCUSES EA BOWLES' AND BOWLES' WHITE EDWARD AUGUSTUS
BOWLES 18651954 PASSIONATE CROCUSARIAN ROYAL HORTICULTURAL SOCIETY LIFE
FELLOW GREATEST AMATEUR GARDENER OF HIS TIME IN HIS GARDEN'S LUNATIC
ASYLUM A HOME FOR DEMENTED PLANTS GREW CORKSCREW HAZEL AND PIGMY ELDER
THIS AMUSING COMPENDIUM IS AS GOOD AS GARDEN GOSSIP GETS AND SUGGESTS A NEW
BBC GAME SHOW WHO DOES YOUR GARDEN GROW

FOR MORE SERIOUS SEEKERS OF PLANTS' ROOTS THERE IS THE RANDOM HOUSE BOOK OF
PERENNIALS IN TWO VOLUMES EARLY PERENNIALS 240 PAGES 25 LATE
PERENNIALS 252 PAGES 25 ROGER PHILLIPS AND MARTYN RIX GIVE READERS A
FEELING FOR PLANT GEOGRAPHY THEY LIST NATURAL PLANT ASSOCIATIONS IE
CAUCASIAN HAY MEADOW AND ORIGINAL HABITATS OF SOME LARGE GROUPS OF
COMMON GARDEN PERENNIALS IE HOSTAS JAPAN AND CHINA IN WOODS SHADY
ROCKS AND CLIFFS WITH CLOUDY WET SUMMERS THEN THEY TAKE YOU THERE THE
VIRTUAL REALITY OF THE BOOK'S PHOTOGRAPHS BROADSCAPE SHOTS OF SPECIES
IN SITU CLOSEUP SHOTS OF PLANTS COMFORTABLY ENSCONCED EX SITU IN
BRITISH GARDENS MAKES FOR STUNNING PLANTGEO JUXTAPOSITIONS PHLOMIS
BRACTEOSA AVOIDED BY GRAZING PONIES IN KASHMIR SO SHOWN BLOOMS IN
ROCKY TERRAIN AGAINST SNOWSPACKLED MOUNTAINS BIG SKY AND CLOUDS BENEATH
IT BLOOMS PHLOMIS RUSSELLIANA AT THE CHELSEA PHYSIC GARDEN OPPOSITE
PHLOMIS TUBEROSA BLOOMS ON THE STEPPES NEAR STAVROPOL SEEING WHENCE
CAME YOUR GARDEN FAMILIARS YOU BEGIN TO UNDERSTAND YOUR PLANTS' PLACE IN
THE PLANET THE BOOK'S RICH TEXT CAN BE MINED FOR INCIDENTAL PLANT
INTELLIGENCE CARDAMINE PRATENSIS CUCKOO FLOWER MAY REQUIRE PROTECTION
FROM WOOD PIGEONS THE RANDOM HOUSE BOOK OF PERENNIALS AN INTELLIGENT
REFERENCE BOOK IS AMONG THE MOST ARTISTICALLY BEAUTIFUL OF PLANT BOOKS

FOR A HANDSOME PICTORIAL GRAMMAR OF SHADE PLANTS ONLY THE NATURAL SHADE
GARDEN CLARKSON POTTER 280 PAGES 40 BY KEN DRUSE PARSED FOR EVERY
CONCEIVABLE SPECIES OF SHADE IS DARKLY ILLUSTRATIVE AND DEEPLY
ILLUMINATING

BUT IVY HAS THRIVED TOO LONG IN THE SHADE ENTER JANE
FEARNLEYWHITTINGSTALL TO FERRY THE GENUS HEDERA ACROSS THE STYX AND INTO
THE LIGHT IN IVIES RANDOM HOUSE 160 PAGES 35 SHE PREACHES THE IVY
GOSPEL AND WELCOMES CONVERTS TO THE BROTHERHOOD OF IVY ADDICTS YES IVY
HAS A BAD NAME DESTRUCTIVE NUISANCE FUNEREAL A LASTDITCH REMEDY
FOR PLACES WHERE NOTHING ELSE WILL GROW AND YES IVY THE TEMPERATE LIANA
HAS GLOSSY GOOD LOOKS TOLERATES EXTREMES OF HEAT AND COLD DENSE SHADE
AND ATMOSPHERIC POLLUTION AND MOST SOILS SURVIVES DROUGHTS SNOW AND
FROST AND THRIVES INDOORS AND OUT FURTHERMORE IVY HAS AN UNPERTURBABLE
TENACITY AND INDESTRUCTIBLE NATURE COULD NAILS BE TOUGH AS IVY THE IVY
LEAGUE IVIES PLANTED BY THE PRINCETON CLASS OF 1866 CONTINUE ONWARD AND
UPWARD

MS FEARNLEYWHITTINGSTALL'S WRITING IS AS REFRESHING AND VARIEGATED AS THE
300 IVIES SHE INTRODUCES IN THE IVY CHART WITH PUCKISH IDEOGRAMS FOR LEAF
SHAPE LEAF SIZE AND RATE OF GROWTH A RABBIT IS FAST A TURTLE IS
SLOW AN UNPERTURBABLY IRRESISTIBLE BOOK AS SATISFYING AS THE KNOWLEDGE
THAT ALL IVIES GROW MORE SLOWLY IN SUN THAN IN SHADE AND THAT IVY
ACTUALLY LIKES A NORTH WALL IVIES DESERVES TO BE CARRIED BEYOND THE
COFFEE TABLE

THE FOURVOLUME NEW ROYAL HORTICULTURAL SOCIETY DICTIONARY OF GARDENING
STOCKTON PRESS 3000 PAGES 795 WITH 4000 ILLUSTRATIONS IS NOT
PORTABLE BUT GARDENERS WOULD BE JUSTIFIED IN BLOWING THEIR ENTIRE
GARDENBOOK BUDGET FOR THE REST OF THE CENTURY ON IT THE DICTIONARY IS IN
FACT THE LAST WORD WELL THE LAST THREE MILLION WORDS ON FIN DE 20TH
SIECLE GARDENING IT TREATS OF MORE THAN 50000 PLANTS IN HORTICULTURE WITH
CAREFUL ATTENTION TO TAXONOMY ECOLOGY AND CONSERVATION PLUS CULTIVATION
NOTES CLEAN OF PESTICIDES AND PEAT THE NEW RHS DICTIONARY READS LIKE THE
FIRST FRESH PUFF OF GARDENING POST2000 THIS SEEMS ALTOGETHER FITTING
ENGLISHLANGUAGE GARDENERS KNOW THE SUN NEVER SETS ON THE BRITISH HORTBOOK
EMPIRE WHY SHOULD THE CENTURY 9301070144 930107 WHO'S NEWS GENERAL
ELECTRIC CO

GENERAL ELECTRIC CO FAIRFIELD CONN RODGER H BRICKNELL 42 YEARS
OLD WAS NAMED VICE PRESIDENT OF GE POWER GENERATION PRODUCT MANAGEMENT IN
SCHENECTADY NY MR BRICKNELL HAD BEEN GENERAL MANAGER OF THE UNIT JAMES
E MOHN 44 WAS NAMED VICE PRESIDENT OF FINANCE OPERATION OF THE GE
LIGHTING UNIT IN CLEVELAND HE HAD BEEN MANAGER OF THE UNIT BOTH POSITIONS
ARE NEW 9301070143 930107 ECONOMY BUSH'S BUDGET PROJECTS DEFICIT 
OF 3273 BILLION  CLINTON CALLS LATEST FIGURES UNSETTLING VOWS
STEPS TO HELP SHRINK THE GAP  BY DAVID WESSEL STAFF REPORTER OF
THE WALL STREET JOURNAL

WASHINGTON PRESIDENT BUSH TOLD BILL CLINTON THAT HE IS INHERITING A
RECORD 3273 BILLION BUDGET DEFICIT FOR THE CURRENT FISCAL YEAR AND THAT
THE DEFICIT FOUR YEARS HENCE WILL ALSO EXCEED 300 BILLION WITHOUT MAJOR
CHANGES IN TAXES AND GOVERNMENT SPENDING

THE PRESIDENTELECT WHO SUGGESTED THAT THE WHITE HOUSE BUDGET OFFICE WAS
HIDING THE TRUE SIZE OF THE DEFICIT CALLED THE FIGURES UNSETTLING AND
VOWED TO MAKE THE DIFFICULT CHOICES REQUIRED TO SHRINK THE BUDGET GAP

BY CALLING SO MUCH ATTENTION TO THE DEFICIT FIGURES AND DESCRIBING THEM AS
UNDERSTATED MR CLINTON APPEARS TO BE LAYING THE GROUNDWORK FOR BACKING OFF
SOME OF HIS CAMPAIGN PROMISES AND PROPOSING TAX INCREASES AND SPENDING CUTS
BEYOND THOSE OUTLINED IN HIS CAMPAIGN PLAN MR CLINTON MEETS WITH HIS
ECONOMIC ADVISERS IN LITTLE ROCK TODAY TO BEGIN MAKING BUDGET DECISIONS

WE NOW CAN SEE THE FULL MAGNITUDE OF THE DEBT WE WILL INHERIT MR CLINTON
SAID THIS SOUNDS THE FINAL WARNING BELL THIS ENDLESS PATTERN OF RISING
DEFICITS MUST STOP

THE NEW BUDGET OFFICE FIGURES PUT THE DEFICIT FOR THE YEAR ENDING SEPT 30
1997 AT 305 BILLION BUT CLINTON COMMUNICATIONS DIRECTOR GEORGE
STEPHANOPOULOS SAID YESTERDAY THAT THE NUMBERS UNDERSTATE THE DEFICIT BY 50
BILLION TO 60 BILLION CLINTON AIDES SAY THAT BASED ON FIGURES THEY HAVE
BEEN GIVEN BY BUDGET OFFICE STAFF THE 1997 DEFICIT WOULD BE 384 BILLION IF
THE CURRENT LEVEL OF SERVICES AND DEFENSE SPENDING IS TO BE MAINTAINED

THE DEFICIT IS FAR WORSE THAN ANYBODY HAS BEEN TELLING US FOR A LONG LONG
TIME MR STEPHANOPOULOS SAID IT JUST REINFORCES OUR DESIRE TO ATTACK THE
TWIN CHALLENGES OF THE BUDGET DEFICIT AND THE INVESTMENT DEFICIT AND THAT'S
WHAT WE'RE GOING TO DO HE WOULDN'T BE MORE SPECIFIC IN MR CLINTON'S
JARGON THE INVESTMENT GAP REFERS TO INSUFFICIENT FEDERAL SPENDING ON
EDUCATION PREVENTIVE HEALTH CARE INFRASTRUCTURE AND THE LIKE

BUDGET DIRECTOR RICHARD DARMAN INSISTED THAT THE 573PAGE BUDGET DOCUMENT
RELEASED YESTERDAY BUDGET BASELINES HISTORICAL DATA AND ALTERNATIVES FOR
THE FUTURE WAS INTENDED ONLY TO BE HELPFUL TO THE INCOMING
ADMINISTRATION

ALTHOUGH MR CLINTON ORIGINALLY USED 1996 AS HIS TARGET FOR HALVING THE
DEFICIT HE LATELY HAS BEEN USING 1997 INSTEAD AND HE HASN'T REPEATED THE
PLEDGE TO CUT THE DEFICIT IN HALF SENATE BUDGET COMMITTEE CHAIRMAN JAMES
SASSER D TENN SAID IT IS NOW DIFFICULT IF NOT IMPOSSIBLE TO HALVE THE
DEFICIT BY 1997

THE COMMITTEE'S SENIOR REPUBLICAN PETE DOMENICI OF NEW MEXICO SAID USING
THE NEW NUMBERS AS AN EXCUSE IS JUST SO EMPTY YOU CAN'T BELIEVE IT

IT WAS CLEAR FROM ADMINISTRATION AND CONGRESSIONAL BUDGET OFFICE REPORTS
LAST SUMMER THAT THE DEFICIT OUTLOOK WAS GROWING WORSE BUT MR CLINTON AND
HIS STAFF TOOK LITTLE NOTICE THE LONGRUN PICTURE HAS GROWN BLEAKER SINCE
THEN PROJECTED SPENDING ON GOVERNMENT BENEFITS IN FISCAL 1997 IS ABOUT 19
BILLION HIGHER THAN THE BUDGET OFFICE PROJECTED IN JULY AND EXPECTED
RECEIPTS ARE 30 BILLION LESS

THE BUDGET OFFICE'S PROJECTION OF A 305 BILLION DEFICIT FOR FISCAL 1997 IS
335 BILLION LARGER THAN ITS JULY ESTIMATE OF WHAT THE DEFICIT WOULD BE IF
CURRENT POLICIES REMAINED IN PLACE THE PROJECTION WOULD HAVE BEEN ANOTHER
282 BILLION LARGER IF MR DARMAN HADN'T CHANGED THE ASSUMPTIONS USED TO
ESTIMATE DOMESTIC AND DEFENSE SPENDING IN LATER YEARS

THE NEW BUDGET BOOK CONFUSES AND OBSCURES RATHER THAN ILLUMINATES THE
CURRENT SITUATION COMPLAINED ROBERT GREENSTEIN DIRECTOR OF THE CENTER ON
BUDGET AND POLICY PRIORITIES AND A CLINTON ALLY THE DARMAN DOCUMENT MAKES
THE PROBLEM LOOK BAD ENOUGH BUT THE OFFICE OF MANAGEMENT AND BUDGET'S OWN
NUMBERS SUPPLIED AND CIRCULATED BY CLINTON AIDES SHOW THE PROBLEM IS
SIGNIFICANTLY WORSE

THE BUDGET BOOK SHOWS THAT THE FEDERAL DEFICIT HAS GROWN FROM 79 BILLION
WHEN RONALD REAGAN WAS ELECTED TO 1525 BILLION IN THE YEAR PRESIDENT BUSH
WAS ELECTED TO THE 3273 BILLION FOR THE YEAR IN WHICH HE LEAVES OFFICE
MEASURED AGAINST THE SIZE OF THE ECONOMY THE DEFICIT HAS GONE FROM 27 OF
GROSS DOMESTIC PRODUCT IN 1980 TO 32 IN 1988 TO 53 THIS YEAR THE WEAK
ECONOMY AND SPENDING ON THE SAVINGSANDLOAN CLEANUP ARE PARTLY RESPONSIBLE
FOR THE INCREASE

BUT AT A NEWS BRIEFING YESTERDAY MR DARMAN CITED ANOTHER EXPLANATION
REFERRING TO REAGAN AND BUSH PROPOSALS TO TRIM SPENDING ON GOVERNMENT
BENEFITS HE SAID THE POLITICAL SYSTEM HAS ACCEPTED THE REAGANPROPOSED
REFORMS THAT AFFECT THE POOR IT HAS NOT ACCEPTED THE REFORMS THAT AFFECT
THE RICH

THE BOOK OFFERS NO NEW POLICIES FOR COPING WITH THE DEFICIT BUT MR DARMAN
OFFERED SOME UNSOLICITED ADVICE IN HIS INTRODUCTION HE SAID IT WILL BE
IMPOSSIBLE FOR MR CLINTON TO HALVE THE DEFICIT PROTECT PEOPLE WITH INCOMES
BELOW 200000 FROM TAX INCREASES AND DEVOTE ANY SAVINGS FROM HEALTHCARE
REFORM TO PROVIDE COVERAGE TO THE UNINSURED THE MATH DOES NOT WORK HE
WROTE

IF TAXES ON THE MIDDLE CLASS AREN'T TO BE RAISED MR DARMAN SAID THEN MR
CLINTON MUST IMPLEMENT A STRONG AND EFFECTIVE PROGRAM FOR ECONOMIC GROWTH
AND CAP THE GROWTH OF SPENDING ON GOVERNMENT BENEFITS USING MOST OF THE
RESULTING SAVINGS FOR DEFICIT REDUCTION

MR DARMAN SAID HE WAS CONFIDENT THAT CONGRESS WOULD HAVE ACCEPTED HIS PLAN
TO CAP TOTAL SPENDING FOR MEDICARE MEDICAID FARM SUBSIDIES AND OTHER
BENEFITS HAD MR BUSH BEEN REELECTED HE ACKNOWLEDGED THAT PROPOSING SUCH A
CAP IS FAR EASIER THAN OUTLINING WHICH PROGRAMS WOULD BE CUT BUT SAID IT
WAS THE ONLY WAY TO FORCE THE GOVERNMENT TO CONFRONT THE ESCALATING COST OF
BENEFITS THAT ARE PAID WITHOUT ANY CONGRESSIONAL OR PRESIDENTIAL ACTION
FIRST PUT IN THE CAP HE TOLD REPORTERS THEN MAKE THE POLITICAL SYSTEM
MAKE THE HARD CHOICES

THE DISPUTE BETWEEN THE CLINTON TEAM AND MR DARMAN OVER HOW BAD THE DEFICIT
TRULY IS HAS TO DO WITH THE APPROPRIATE ASSUMPTIONS FOR WHAT'S KNOWN AS
DISCRETIONARY SPENDING DEFENSE AND DOMESTIC SPENDING THAT MUST BE
APPROPRIATED ANNUALLY SEN SASSER AND SOME CLINTON AIDES SAY THE BEST WAY
TO DESCRIBE CURRENT POLICY IS TO ASSUME THAT SPENDING INCREASES TO KEEP UP
WITH INFLATION ON THAT BASIS THE DEFICIT WOULD BE 3244 BILLION IN 1996
AND 3841 BILLION IN 1997 UNDER CURRENT POLICIES CUTTING THE DEFICIT WILL
REQUIRE TAX INCREASES OR REDUCING THE CURRENT LEVEL OF SERVICES OR DEFENSE

MR DARMAN ON THE OTHER HAND DOESN'T ASSUME THAT DISCRETIONARY SPENDING
WHICH ACCOUNTS FOR ABOUT 30 OF FEDERAL SPENDING KEEPS UP WITH INFLATION
AS THE CONGRESSIONAL BUDGET OFFICE DOES HE ASSUMES THAT CONGRESS AND THE
WHITE HOUSE LIVE WITH SPENDING CEILINGS FOR FISCAL YEARS 1994 AND 1995 THAT
ARE WRITTEN INTO LAW AND REQUIRE CUTS IN DEFENSE OR DOMESTIC SPENDING OR
BOTH AFTER THAT HE SIMPLY ASSUMES THAT DISCRETIONARY SPENDING IS CONSTANT

ON THIS BASIS THE 1996 DEFICIT WOULD BE 2664 BILLION AND THE 1997 DEFICIT
305 BILLION MR CLINTON'S AIDES SAY THIS APPROACH UNDERSTATES THE AMOUNT
OF PAIN THAT WILL BE INFLICTED TO GET THE DEFICIT DOWN

ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE SAID MR
DARMAN'S VERSION PROVIDES AN OPTIMISTIC VIEW OF THE DEFICIT THAT BUILDS IN
A 10 REDUCTION IN DISCRETIONARY SPENDING AFTER ADJUSTING FOR INFLATION
BETWEEN 1995 AND 1998 WHICH WOULD BE DIFFICULT TO ACHIEVE AND WOULD BE
PAINFUL THE ALTERNATIVE MR CLINTON'S AIDES FAVOR HE SAID SHOWS HOW
PAINFUL IT WILL BE EVEN TO MEET ALREADYLEGISLATED SPENDING CEILINGS LET
ALONE MORE AMBITIOUS DEFICIT TARGETS FOR THE FUTURE

THE WHITE HOUSE BUDGET OFFICE ESTIMATES THAT THE GOVERNMENT WILL SPEND
1475 TRILLION IN THE CURRENT FISCAL YEAR UP 67 FROM LAST YEAR RECEIPTS
ARE PROJECTED TO BE 1148 TRILLION IN THE CURRENT FISCAL YEAR UP 51
9301070142 930107 GEOTEK FINANCING WITH TADIRAN

RAMSEY NJ GEOTEK INDUSTRIES INC SAID IT COMPLETED THE FIRST PHASE OF
A 9 MILLION PRIVATE FINANCING WITH ISRAEL'S TADIRAN LTD AND OTHER
INVESTORS

GEOTEK SAID TADIRAN ALSO WILL BECOME THE SUPPLIER OF THE CALL SWITCHING
MECHANISM OF GEOTEK'S WIRELESS COMMUNICATIONS SYSTEM POWERSPECTRUM
PROCEEDS OF THE FINANCING WILL BE USED TO MAKE ADDITIONAL INVESTMENTS IN
POWERSPECTRUM 9301070140 930107 GE CAPITAL TO BUY GNA CORP UNIT OF
WEYERHAEUSER  BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET
JOURNAL

GE CAPITAL IS JOINING THE HEATED COMPETITION FOR CONSUMER INVESTMENT
DOLLARS ANNOUNCING AN AGREEMENT TO PURCHASE WEYERHAEUSER CO'S CONSUMER
FINANCE UNIT FOR ROUGHLY 525 MILLION

WITH SALES VOLUME OF 32 BILLION LAST YEAR THE UNIT SEATTLEBASED GNA
CORP IS A MAJOR WHOLESALER OF TAXDEFERRED ANNUITIES AND MUTUAL FUNDS
MARKETING ITS PRODUCTS THROUGH BANKS AND OTHER FINANCIAL INSTITUTIONS THE
ACQUISITION MARKS GE CAPITAL'S FIRST FORAY INTO INDIVIDUAL INVESTMENTS
ALTHOUGH THE STAMFORD CONN COMPANY IS ACTIVE IN OTHER CONSUMER
BUSINESSES SUCH AS CREDIT CARDS AUTO FINANCE AND MORTGAGE INSURANCE

WE THINK THIS IS A GROWTH MARKET GIVEN THE DEMOGRAPHIC CHANGES GARY
WENDT GE CAPITAL'S CHIEF EXECUTIVE SAID YESTERDAY AS AGING BABY BOOMERS
AUGMENT THEIR RETIREMENT SAVINGS THIS MARKET COULD MORE THAN DOUBLE IN SIZE
BEFORE THE YEAR 2000 GE CAPITAL A UNIT OF GENERAL ELECTRIC CO IS ONE OF
THE NATION'S LARGEST FINANCIAL COMPANIES CONCENTRATING MOSTLY IN BUSINESS
FINANCING

CONSIDERING GE CAPITAL'S DEEP POCKETS AND PENCHANT FOR ACQUISITIONS IT
COULD EMERGE AS A FORMIDABLE COMPETITOR TO MUTUAL FUND COMPANIES AS WELL AS
BANKS WHICH ARE ALSO TRYING TO EXPAND INTO CONSUMER INVESTMENTS

NO LONGER CONSTRAINED BY LACK OF RESOURCES GNA CORP IS EXPECTED TO EXPAND
BOTH TYPES OF PRODUCTS AND DISTRIBUTION OUTLETS MR WENDT SAID GNA WILL
BECOME A STANDALONE UNIT OF GE CAPITAL

THEY'LL HAVE THE RESOURCES TO SHOW US WHAT THEY CAN DO SAID MR WENDT HE
SAID THE ACQUISITION WILL ADD MARGINALLY TO EARNINGS IN THE FIRST YEAR GE
CAPITAL IS OF GROWING IMPORT TO ITS PARENT'S BOTTOM LINE GE'S THIRDQUARTER
PROFIT ROSE 65 TO 111 BILLION FUELED BY A 17 INCREASE IN PROFIT FROM
FINANCIAL SERVICES

THE SALE BY WEYERHAEUSER WHICH PURCHASED GNA IN 1983 IS A CONTINUATION OF
AN EFFORT BY THE BIG PAPER COMPANY TO WINNOW ITS OPERATIONS IT HAS BEEN
STREAMLINING ITS BUSINESS SINCE 1990 WHEN IT BEGAN TO FOCUS MORE NARROWLY
ON ITS OLDLINE FOREST PRODUCTS OPERATIONS

THE STRATEGY PAID OFF IN RECENT QUARTERS FOR THE NINE MONTHS ENDING SEPT
27 ITS NET INCOME MORE THAN DOUBLED TO 2867 MILLION OR 141 A SHARE ON
SALES OF 69 BILLION WEYERHAEUSER WILL ASSUME 225 MILLION OF GNA'S DEBT

CHARLES MCCOY IN SAN FRANCISCO CONTRIBUTED TO THIS ARTICLE 9301070139
930107 INTERNATIONAL FOREIGN INSIGHT JAPAN PURSUES BROADER POLITICAL
ROLE IN ASIA TO MATCH ITS ECONOMIC CLOUT  BY JOHN BUSSEY AND JACOB
M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL

TOKYO WHEN JAPAN'S PRIME MINISTER HEADS OFF MONDAY ON AN OFFICIAL TOUR OF
SOUTHEAST ASIA HE WILL BE TRYING TO ADD DIPLOMATIC MUSCLE TO THE NATION'S
ECONOMIC DOMINANCE OF THE REGION

PRIME MINISTER KIICHI MIYAZAWA WILL TRAVEL TO INDONESIA MALAYSIA THAILAND
AND BRUNEI TO DEEPEN POLICY DIALOGUE SAID A FOREIGN MINISTRY STATEMENT
JAPAN AND THESE COUNTRIES ARE BECOMING MATURE PARTNERS THAT THINK AND ACT
TOGETHER A NEW AND UNCERTAIN WORLD ORDER REQUIRES GREATER INITIATIVE BY
JAPAN IT ADDED

IT IS IMPORTANT FOR US TO DEVELOP A NEW DIPLOMACY MR MIYAZAWA SAID IN A
NEW YEAR'S SPEECH

MR MIYAZAWA'S TOUR FOLLOWS A REPORT LAST MONTH BY A SPECIAL PANEL HE
COMMISSIONED ON JAPAN'S ROLE IN THE REGION THE REPORT CALLED FOR JAPAN TO
PLAY A CONSIDERABLY GREATER POLITICAL ROLE AND TO MAKE A GREATER
CONTRIBUTION THAN IN THE PAST

CLEARLY THAT GREATER ROLE IS PARTLY MOTIVATED BY ECONOMICS SOME OF THE
FASTESTGROWING NATIONAL ECONOMIES IN THE WORLD ARE IN ASIA AND JAPAN
CONTINUES TO POUR AID AND INVESTMENT INTO THE PACIFIC REGION CHINA
PARTICULARLY HAS BEEN THE RECIPIENT OF A FLOOD OF YEN ONE REASON FOR THE
INVESTMENT IS TO ENSURE JAPAN'S PRESENCE IN BURGEONING ASIAN MARKETS AND TO
HEDGE AGAINST SLOWING GROWTH IN DEMAND IN MORE MATURE MARKETS IN THE WEST
AND ON THE HOME FRONT

JAPAN'S INVESTMENT IN ASIA IS DESIGNED TO TAKE STRATEGIC CONTROL OF WHAT
ARE THE FASTESTGROWING MARKETS IN THE WORLD SAYS KENNETH S COURTIS
SENIOR ECONOMIST FOR DEUTSCHE BANK CAPITAL MARKETS ASIA

JAPANESE OFFICIALS INSIST THAT THE CENTERPIECE OF ANY NEW ASIA POLICY WILL
STILL BE A CLOSE USJAPAN RELATIONSHIP AND JAPAN'S SUPPORT OF A MAJOR
US MILITARY ROLE IN THE REGION NO ONE WANTS A SECURITY VACUUM IN THE
REGION A SENIOR FOREIGN MINISTRY OFFICIAL TOLD REPORTERS WEDNESDAY BUT
THERE'S A GROWING SENSE WITHIN THE JAPANESE GOVERNMENT THAT JAPAN ITSELF
SHOULD TRY TO STEER FUTURE EVENTS IN ITS NEIGHBORHOOD ESPECIALLY PLAYING A
MORE ACTIVE SECURITY ROLE

UNTIL NOW JAPAN HAS TENDED TO THINK OF INTERNATIONAL FRAMEWORKS AS BEING
DETERMINED BY OUTSIDE FORCES LAST MONTH'S REPORT SAID BUT IT MUST NOT
REMAIN IN THIS PASSIVE MODE FOREVER

IN A RECENT SURVEY OF BUSINESS LEADERS BY THE SANKEI SHIMBUN NEWSPAPER 64
OF THOSE QUESTIONED SAID JAPAN SHOULD SHIFT ITS FOREIGN POLICY EMPHASIS
TOWARD ASIA AND AWAY FROM THE US ONLY 25 WANT JAPAN TO STRENGTHEN TIES
WITH THE US

JAPANESE OFFICIALS ADMIT THAT THE LEGACY OF WORLD WAR II WILL CONTINUE TO
HAMPER ATTEMPTS TO IMPROVE TIES WITH NEIGHBORING NATIONS MANY ASIANS FOR
EXAMPLE ARE LOBBYING THE UNITED NATIONS TO LAUNCH A COMPREHENSIVE
INVESTIGATION OF JAPAN'S WORLD WAR II POLICY OF FORCING ASIAN WOMEN TO SERVE
AS PROSTITUTES FOR ITS TROOPS ADDITIONALLY JAPAN'S EXPLODING TRADE SURPLUS
IS INCREASINGLY ANGERING PACIFICRIM COUNTRIES

ANOTHER TOPIC MR MIYAZAWA WILL ADDRESS DURING HIS ASIA TOUR IS INDOCHINA
AND HOW IT MIGHT BE BEST REINTEGRATED INTO THE REGION'S ECONOMY HOURS AFTER
THE US PRESIDENTIAL ELECTION IN NOVEMBER JAPAN BROKE WITH THE BUSH
ADMINISTRATION AND RESUMED ECONOMIC RELATIONS WITH VIETNAM THE FOREIGN
MINISTRY OFFICIAL SAID JAPAN WANTS TO ASSIMILATE VIETNAM WITH THE
SUCCESSFUL CAPITALIST COUNTRIES OF SOUTHEAST ASIA

AS JAPAN LOOKS TO BROADEN ITS ECONOMIC INFLUENCE IN THE REGION CHINA IS
PROVING TO BE THE DESTINATION OF FIRST CHOICE FOR MANY COMPANIES A RECENT
SURVEY BY THE EXPORTIMPORT BANK OF JAPAN RANKED CHINA AS THE MOST POPULAR
COUNTRY FOR NEW JAPANESE INVESTMENT THIS YEAR WITH INDONESIA A DISTANT
SECOND AND THE US THIRD THERE HAVE BEEN DAILY REPORTS OF NEW JAPANESE
INVESTMENT IN CHINA SINCE THE EMPEROR'S GOODWILL VISIT TO BEIJING IN
OCTOBER

THIS WEEK ALONE CANON INC SAID IT WILL BEGIN PRODUCING FACSIMILE MACHINES
IN CHINA BY NEXT YEAR OMRON CORP SAID IT IS MAY BUILD A PARTS FACTORY AND
A REGIONAL JAPANESE SUPERMARKET CHAIN SAID IT WILL START A RETAIL BUSINESS
IN CHINA BY 1995 9301070138 930107 INTERNATIONAL KLM TOTAL TRAFFIC
RISES 16

AMSTERDAM KLM ROYAL DUTCH AIRLINES SAID ITS TOTAL AIRLINE TRAFFIC ROSE
16 IN DECEMBER FROM A YEAR EARLIER ALTHOUGH CAPACITY USE DECLINED

KLM SAID TOTAL TRAFFIC MEASURED IN STANDARDIZED PASSENGER AND CARGO HAULAGE
OVER DISTANCE OR TON KILOMETERS ROSE IN DECEMBER TO 4667 MILLION TON
KILOMETERS FROM 4024 MILLION TON KILOMETERS A YEAR EARLIER

THE AMSTELVEENBASED DUTCH FLAG CARRIER WHICH IS 382 STATEOWNED NOTED
THAT PASSENGER TRAFFIC ROSE 15 TO 232 MILLION TON KILOMETERS CARGO TRAFFIC
WAS UP 17 FOR THE MONTH TO 2347 MILLION TON KILOMETERS

BUT CAPACITY USE DIPPED TO 672 FROM 683 A YEAR AGO 9301070137 930107
DE BEERS SALES OF DIAMONDS FELL 12 IN 2ND HALF  BY NEIL
BEHRMANN SPECIAL TO THE WALL STREET JOURNAL

LONDON DIAMOND SALES OF DE BEERS CENTENARY AG SLID 12 TO 163 BILLION
IN THE SECOND HALF OF 1992 FROM 184 BILLION A YEAR EARLIER THE COMPANY
SAID

SALES OF ROUGH UNCUT DIAMONDS OF WHICH THE COMPANY CONTROLS 80 OF THE
WORLD MARKET WERE BETTER THAN EXPECTATIONS AND DE BEERS'S SHARES ROSE TO
1225 FROM 11875 TUESDAY BROKERS SAID

DE BEERS'S TOTAL SALES FELL 13 TO 34 BILLION IN 1992 REFLECTING THE
SLUGGISH PACE OF ECONOMIC GROWTH THROUGHOUT MOST OF THE WORLD

BUT A SPOKESMAN SAID THAT AFTER A SLOW START IN 1992 WORLD RETAIL DIAMOND
JEWELRY SALES IMPROVED IN THE WANING MONTHS OF THE YEAR HE SAID CHRISTMAS
SEASON SALES IN 1992 WOULD PROBABLY MATCH THE 1991 SEASON SALES OF 39
BILLION MORE THAN A THIRD OF WORLD RETAIL DIAMOND JEWELRY SALES OCCUR IN
THE FINAL WEEKS OF THE YEAR THE DE BEERS SPOKESMAN SAID AND THE US IS
THE LARGEST MARKET

IN THE FIRST THREE QUARTERS OF 1992 US IMPORTS OF POLISHED CUT DIAMONDS
ROSE NEARLY 14 TO 58 MILLION CARATS ONE CARAT IS EQUAL TO 1/142 OUNCE
FROM 51 MILLION IN 1991 YET THE VALUE OF THOSE SALES CREPT UP BY ONLY 49
TO 27 BILLION THE AMERICAN DIAMOND INDUSTRY ASSOCIATION SAID CONSUMERS
ARE BUYING CHEAPER DIAMONDS

DEALERS IN ANTWERP SAID THEY DETECTED A SLIGHT RECOVERY ALTHOUGH THEY
EXPRESSED SOME CONCERN ABOUT THE OUTLOOK FOR SALES IN JAPAN THE SECOND
LARGEST MARKET THE WEAK ECONOMY THERE CAUSED JAPANESE DIAMOND IMPORTS TO
SLIP 20 LAST YEAR DEALERS SAID AND IT IS TOO EARLY TO DETERMINE IF
IMPORTS WILL CONTINUE TO DECLINE

DE BEERS'S SALES OF ROUGH UNCUT DIAMONDS FARED WORSE THAN RETAIL SALES
BECAUSE WHOLESALERS AND RETAILERS PARTICULARLY IN JAPAN WERE REDUCING
INVENTORIES DEALERS SAID PRICES OF ROUGH DIAMONDS ON WORLD MARKETS WERE
TRADING AT DISCOUNTS TO DE BEERS QUOTES IN THE THIRD QUARTER OF THE YEAR
BECAUSE OF SLACK DEMAND RUSSIAN SALES AND SMUGGLING FROM ANGOLA

AS A RESULT THEY SAID DE BEERS SLASHED PURCHASES FROM PRODUCER MEMBERS OF
ITS DIAMOND CARTEL AND SUPPORTED THE MARKET BY WITHHOLDING GEMS THAT HAS
BROUGHT SOME STABILITY TO THE MARKET FOR ROUGH DIAMONDS DEALERS SAID AND
PROBLEMS AT TWO RUSSIAN DIAMOND MINES COUPLED WITH A REDUCED FLOW OF
ANGOLAN STONES ARE HELPING TO REDUCE SUPPLIES OF DIAMONDS 9301070136
930107 CONTINENTAL'S DECEMBER TRAFFIC

HOUSTON CONTINENTAL AIRLINES SAID ITS DECEMBER TRAFFIC FELL 24 TO 351
BILLION REVENUE PASSENGER MILES FROM 359 BILLION MILES A YEAR EARLIER

A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD
FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ALSO DROPPED TO 613 FROM
649

FOR 1992 THE AIRLINE WHICH HAS BEEN OPERATING UNDER FEDERAL BANKRUPTCYLAW
PROTECTION POSTED A 4 INCREASE IN TRAFFIC TO 431 BILLION REVENUE
PASSENGER MILES FROM 4143 BILLION IN 1991 LOAD FACTOR INCREASED TO 635
FROM 626

CONTINENTAL IS A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC 9301070135
930107 FDIC HIRES GOLDMAN SACHS TO AID IN CROSSLAND SALE

WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP HIRED GOLDMAN SACHS & CO
FOR ADVICE ON HOW TO DISPOSE OF CROSSLAND SAVINGS A FAILED THRIFT THE
AGENCY TOOK OVER A YEAR AGO

WE WANT TO GET CROSSLAND BACK INTO THE PRIVATE SECTOR SAID HARRISON
YOUNG THE FDIC OFFICIAL IN CHARGE OF RESOLVING BANK FAILURES GOLDMAN SACHS
HAS THREE MONTHS TO STUDY THE NEW YORK SAVINGS BANK'S OPERATIONS AND ASSETS
AND TO RECOMMEND THE BEST WAY TO SELL THEM

WHEN A BANK OR THRIFT FAILS THE FDIC NORMALLY SELLS OFF AS MUCH OF THE
INSTITUTION AS POSSIBLE TO ANOTHER INSTITUTION BUT THE AGENCY DECIDED TO
TAKE OVER CROSSLAND AND MANAGE IT AS PART OF AN EFFORT TO DEVELOP WAYS TO
REDUCE THE COST AND DISRUPTION OF FAILURES THE EXPERIMENT PROVOKED SHARP
CRITICISM FROM MEMBERS OF CONGRESS WHO OPPOSED THE IDEA OF THE GOVERNMENT
RUNNING BANKS A SUCCESSFUL SALE WOULD HELP JUSTIFY THE FDIC'S DECISION TO
TAKE OVER CROSSLAND

SINCE THE FDIC INSTALLED ITS OWN MANAGER IN THE BANK CROSSLAND HAS REDUCED
ITS ASSETS TO 6 BILLION FROM 74 BILLION AND BOOSTED ITS RESERVES AGAINST
BAD LOANS 9301070134 930107 WHO'S NEWS LILLIAN VERNON CORP

LILLIAN VERNON CORP NEW ROCHELLE NY LARRY R BLUM 44 YEARS OLD
WAS NAMED SENIOR VICE PRESIDENT OF ADMINISTRATION AT THIS SPECIALTY CATALOG
RETAIL COMPANY MR BLUM WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE
PRESIDENT HUMAN RESOURCES IN ADDITION TO HIS ADMINISTRATIVE DUTIES HE
WILL BE RESPONSIBLE FOR THE COMPANY'S WHOLESALE DIVISION THE
QUALITYASSURANCE DEPARTMENT AND THE COMPANY'S OUTLET STORES 9301070133
930107 BUSINESS BRIEFS

ALLIEDSIGNAL INC REACHED AN AGREEMENT IN PRINCIPLE TO PURCHASE A SPECIALTY
BUSINESS FROM KOCH CHEMICAL CO TERMS WERE NOT DISCLOSED

ZURN INDUSTRIES INC WON A 200 MILLION CONTRACT TO BUILD A 240 MEGAWATT
COGENERATION POWER PLANT FOR FALCON SEABOARD POWER CO'S SARANAC ENERGY CO
UNIT

OLD KENT FINANCIAL CORP COMPLETED ITS ACQUISITION OF UNIVERSITY FINANCIAL
CORP FOR AN UNDISCLOSED AMOUNT

HARSCO CORP'S BMY COMBAT SYSTEMS UNIT WON A 245 MILLION EXTENSION OF A
PREVIOUS CONTRACT TO PRODUCE COMPONENTS FOR ITS M9 ARMORED COMBAT
EARTHMOVERS THAT WILL THEN BE ASSEMBLED BY AN UNNAMED OVERSEAS CUSTOMER

MYLAN LABORATORIES INC AGREED TO ACQUIRE THE ASSETS OF BERTEK INC FOR 39
MILLION IN MYLAN STOCK

AMERICAN BANKERS INSURANCE GROUP INC SIGNED A LETTER OF INTENT TO ACQUIRE
VOYAGER INSURANCE COS FROM PRIMERICA CORP TERMS WERE NOT DISCLOSED
9301070132 930107 KNOGO CORP GETS GERMAN ORDER

HAUPPAUGE NY KNOGO CORP SAID IT RECEIVED A CONTRACT TO PROVIDE
ELECTRONIC ARTICLE SURVEILLANCE PRODUCTS AND SERVICES TO A PUBLICLY HELD
GERMAN SHOE COMPANY FOR 16 MILLION

KNOGO MAKES ELECTRONIC STRIPS THAT CAN BE PLACED IN MERCHANDISE AND
PREVENTS SHOPLIFTING BY TRIGGERING AN ALARM

KNOGO SAID IT WILL INITIALLY INSTALL ITS SYSTEMS IN OVER 300 STORES IN A
DIVISION OF THE GERMAN COMPANY AND 50 OTHER SITES WILL BE ADDED LATER IN
THE YEAR THIS ORDER IS VALUED AT 5 MILLION FOR EQUIPMENT AND 850000 FOR
YEARLY STRIP PURCHASES

THE PROGRAM WILL BE EXPANDED TO AN ADDITIONAL 500 STORES AFTER THE FIRST
PHASE IS COMPLETED THIS ORDER IS VALUED AT ABOUT 9 MILLION FOR EQUIPMENT
AND AN ADDITIONAL 14 MILLION IN ANNUAL STRIP ORDERS 9301070131 930107
WHO'S NEWS ADIDAS AG

ADIDAS AG HERZOGENAURACH GERMANY RUSSELL A KERSH 39 YEARS OLD WAS
NAMED CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER AT ADIDAS USA
INC THE SPARTANBURG SC UNIT OF THIS CLOSELY HELD GERMAN ATHLETIC
FOOTWARE AND APPAREL CONCERN MR KERSH SUCCEEDS ANDREW P HINES 53 WHO
RESIGNED DEC 31 MR HINES WILL CONTINUE AS A CONSULTANT 9301070130
930107 VISHAY COMPLETES STOCK OFFERING

MALVERN PA VISHAY INTERTECHNOLOGY INC SAID IT COMPLETED AN OFFERING OF
18 MILLION SHARES USING THE 59 MILLION OF PROCEEDS TO REDUCE BANK DEBT

THE MAKER AND SUPPLIER OF PASSIVE ELECTRONIC COMPONENTS ALSO SAID IT SIGNED
A LETTER OF COMMITMENT WITH A CONSORTIUM OF BANKS TO ACQUIRE THE 81 OF
ROEDERSTEIN GMBH VISHAY DOESN'T ALREADY OWN FOR 27 MILLION AND TO
RESTRUCTURE THE LANDSHUT GERMANY COMPANY'S 113 MILLION BANK DEBT

VISHAY SAID IT EXPECTS TO COMPLETE THE PURCHASE OF ROEDERSTEIN WHICH ALSO
MAKES PASSIVE ELECTRONIC PARTS BY THE END OF JANUARY AND FOR THE GERMAN
COMPANY'S OPERATING RESULTS TO BE FULLY REFLECTED IN THE FIRST QUARTER
9301070129 930107 WHO'S NEWS TIME WARNER INC

TIME WARNER INC NEW YORK STEVEN L JANAS 40 YEARS OLD WAS NAMED
PRESIDENT OF TIMELIFE MUSIC A DIVISION OF THE ALEXANDRIA VABASED TIME
LIFE INC UNIT OF THIS MEDIA COMPANY MR JANAS WHO HAD BEEN VICE PRESIDENT
OF THE HBO INTERNATIONAL DIVISION SUCCEEDS JOHN HALL 44 WHO WAS RECENTLY
NAMED PRESIDENT AT TIMELIFE BOOKS 9301070128 930107 WHO'S NEWS NEW
LINE CINEMA CORP

NEW LINE CINEMA CORP NEW YORK CHRIS PULA 37 YEARS OLD WAS NAMED
PRESIDENT OF THEATRICAL MARKETING AT THE INDEPENDENT MOVIE PRODUCER AND
DISTRIBUTOR MR PULA HAD BEEN SENIOR VICE PRESIDENT OF MARKETING AT 20TH
CENTURY FOX AND ITS PARENT COMPANY FOX BROADCASTING CO BOTH UNITS OF NEWS
CORP SYDNEY AUSTRALIA HE SUCCEEDS SANDRA RUCH WHO RESIGNED IN DECEMBER
TO PURSUE OTHER INTERESTS KAREN HERMELIN 31 WAS NAMED VICE PRESIDENT OF
RESEARCH AND STRATEGY AT NEW LINE MS HERMELIN WHOSE POSITION IS NEWLY
CREATED HAD BEEN DIRECTOR OF CORPORATE RESEARCH 9301070127 930107
LETTERS TO THE EDITOR REPEAT PERFORMANCE

IN HIS DEC 29 LETTER TO THE EDITOR JC PENNYLEGION MAKES THE POINT THAT
SINCE MANDATE FOR CHANGE HAS ALREADY BEEN USED AS THE TITLE OF DWIGHT D
EISENHOWER'S FIRST VOLUME OF MEMOIRS THE DEMOCRATIC LEADERSHIP COUNCIL AND
PROGRESSIVE POLICY INSTITUTE WILL HAVE TO COME UP WITH A NEW TITLE FOR THEIR
VOLUME OF ADVICE TO PRESIDENTELECT CLINTON

FIRST TITLES CANNOT BE COPYRIGHTED SECOND IF AS MR PENNYLEGION STATES
THE PERIOD 19331953 IS AN EXAMPLE OF DEMOCRATIC MISRULE I PRAY THAT WE
ARE SO ABUSED AGAIN 9301070126 930107 WHO'S NEWS EMERSON ELECTRIC CO

EMERSON ELECTRIC CO ST LOUIS WILLIAM L DAVIS WAS NAMED SENIOR
EXECUTIVE VICE PRESIDENT OF THIS CONSUMER ELECTRONIC AND ELECTRICAL PRODUCTS
COMPANY MR DAVIS 49 YEARS OLD WAS MOST RECENTLY EMERSON'S EXECUTIVE VICE
PRESIDENT IN CHARGE OF ITS TOOL BUSINESS 9301070125 930107 WHO'S NEWS 
NATIONAL WESTMINSTER BANK PLC

NATIONAL WESTMINSTER BANK PLC LONDON JOHN HOWLANDJACKSON UNTIL NOW
THE PRESIDENT OF NOMURA INTERNATIONAL HAS BEEN APPOINTED SENIOR MANAGING
DIRECTOR OF NATWEST MARKETS THE CORPORATE AND INVESTMENT BANKING ARM OF
BRITAIN'S SECONDLARGEST CLEARING BANK MR HOWLANDJACKSON 43 YEARS OLD
JOINS DR MARTIN OWEN NATWEST MARKETS CHIEF EXECUTIVE OFFICER AND ROGER
BYATT A FELLOW SENIOR MANAGING DIRECTOR AS PART OF A THREEMAN
TOPMANAGEMENT STRUCTURE ANNOUNCED IN NOVEMBER 9301070124 930107 WHO'S
NEWS LESLIE FAY COS

LESLIE FAY COS NEW YORK LAURA H POMERANTZ 45 YEARS OLD WAS NAMED
EXECUTIVE VICE PRESIDENT AT THIS MAKER OF WOMEN'S APPAREL MS POMERANTZ
WHO HAD BEEN A SENIOR VICE PRESIDENT WILL CONTINUE TO BE RESPONSIBLE FOR
ALL OF THE COMPANY'S BETTER BRANDS INCLUDING BRECKENRIDGE OUTLANDER JOAN
LESLIE AND CASTLEBERRY AND THE CONSOLIDATION OF SEVERAL OF THOSE BRANDS
INTO A NEW BRAND TO BE LAUNCHED THIS YEAR MS POMERANTZ WHOSE POST IS NEW
ALSO HEADS THE COMPANY'S ALBERT NIPON AND LESLIE FAY EVENINGS DIVISIONS SHE
IS THE WIFE OF JOHN J POMERANTZ THE COMPANY'S CHAIRMAN AND CHIEF
EXECUTIVE 9301070123 930107 WHO'S NEWS CANADA NAMES ENVOY TO US

OTTAWA GEN JOHN DE CHASTELAIN THE CANADIAN ARMED FORCES' CHIEF OF
STAFF HAS BEEN NAMED CANADA'S AMBASSADOR TO THE US

HE SUCCEEDS DEREK BURNEY WHO WAS RECENTLY APPOINTED EXECUTIVE VICE
PRESIDENT INTERNATIONAL OF BCE INC A MONTREAL TELECOMMUNICATIONS HOLDING
COMPANY

GEN DE CHASTELAIN WHO IS 55 YEARS OLD HAS BEEN CHIEF OF STAFF SINCE 1989
HIS SUCCESSOR HASN'T BEEN NAMED 9301070122 930107 CANADA AGENCY RULES 
FOREIGN STEELMAKERS DUMPED CARBON PLATE

OTTAWA CANADA'S REVENUE DEPARTMENT RULED THAT CARBON STEEL PLATE FROM
NINE COUNTRIES INCLUDING THE US HAS BEEN DUMPED ON THE CANADIAN MARKET

DUMPING OCCURS WHEN A PRODUCT IS SOLD IN A FOREIGN MARKET AT A PRICE LOWER
THAN ITS DOMESTIC MARKET PRICE

THE STEEL PLATE INVESTIGATION FOLLOWED A COMPLAINT BY ALGOMA STEEL INC
SAULT STE MARIE ONTARIO ALGOMA IS A MAJOR CANADIAN PRODUCER OF CARBON
STEEL PLATE WHICH IS USED IN CONSTRUCTION AND IN HEAVY EQUIPMENT SUCH AS
RAIL CARS

THE NINE COUNTRIES HAVE BEEN EXPORTING ABOUT 180000 TONS OF CARBON STEEL
PLATE VALUED AT ABOUT 90 MILLION CANADIAN DOLLARS US705 MILLION TO
CANADA ANNUALLY THE US ACCOUNTS FOR ABOUT A THIRD OF THE SHIPMENTS TO
CANADA BY THE NINE COUNTRIES OTHER SUBSTANTIAL SUPPLIERS NAMED WERE STEEL
COMPANIES IN BRAZIL GERMANY AND BRITAIN

THE DEPARTMENT IMPOSED PROVISIONAL ANTIDUMPING DUTIES AVERAGING 114 ON
IMPORTS OF US CARBON STEEL PLATE

THE DEPARTMENT IS TO MAKE A FINAL DETERMINATION ON THE CASE WITHIN 90 DAYS
THE CANADIAN INTERNATIONAL TRADE TRIBUNAL IS TO DECIDE WITHIN 120 DAYS IF
THE STEEL PLATE IMPORTS HAVE INJURED CANADIAN PRODUCTION IF INJURY IS
FOUND THE ANTIDUMPING DUTIES WILL BE RETAINED 9301070121 930107 WHO'S
NEWS ALBERTSON'S INC

ALBERTSON'S INC BOISE IDAHO FORMER IDAHO REPUBLICAN SEN STEVEN D
SYMMS 54 YEARS OLD WAS ELECTED TO THE BOARD OF THIS FOOD AND DRUG
RETAILER INCREASING THE BOARD TO 14 MEMBERS 9301070120 930107 QUARTERLY
MUTUAL FUNDS REVIEW CDA/WIESENBERGER TAPS INVESTMENT CO AS TOP
PERFORMER

NEW YORK WHICH MUTUAL FUND RANKS AS THE TOPPERFORMING FUND OF ALL TIME

CDA/WIESENBERGER WHICH HAS BEEN TRACKING MUTUAL FUND PERFORMANCE LONGER
THAN ANYBODY ELSE GIVES THE NOD TO INVESTMENT CO OF AMERICA A BROKERSOLD
FUND MANAGED BY CAPITAL RESEARCH & MANAGEMENT OF LOS ANGELES

THE FUND HAS RETURNED 49456 OR 124 A YEAR SINCE 1940 WHEN
CDA/WIESENBERGER FIRST STARTED TRACKING MUTUAL FUND PERFORMANCE OTHER TOP
PERFORMERS FOR THE 53YEAR PERIOD INCLUDE AFFILIATED FUND SELIGMAN GROWTH
FUND SELIGMAN COMMON STOCK FUND AND FIDELITY FUND ALL THESE FUNDS
PERFORMED SLIGHTLY BETTER THAN THE STANDARD & POOR'S 500STOCK INDEX WHICH
GAINED 118 A YEAR DURING THE PERIOD

CDA NOTES THAT PIONEER FUND HAS PERFORMED BETTER THAN INVESTMENT CO OF
AMERICA DURING THE PERIOD BUT IN 1940 PIONEER WASN'T REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION AS A MUTUAL FUND SO IT WASN'T INCLUDED
IN CDA'S RECORDS CDA'S LIST ALSO EXCLUDES FIDELITY MAGELLAN FUND WHICH
MANY CONSIDER THE FUND INDUSTRY'S GREATEST LONGTERM PERFORMER MAGELLAN
WASN'T LAUNCHED UNTIL 1963 9301070119 930107 QUARTERLY MUTUAL FUNDS
REVIEW FIDELITY SELECT SAVINGS & LOAN RIDES ROLLER COASTER TO TOP WITH
SMALL STOCKS  BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET
JOURNAL

IT PAID TO TAKE RISKS IN 1992

RESURGENT SMALL STOCKS BOOSTED THE SHARES OF SMALLSTOCK MUTUAL FUNDS LAST
YEAR WHILE THESE FUNDS HAVE GREAT RECORDS TODAY MANY OF THEM HAVE HAD WILD
SWINGS IN RETURNS IN THE PAST WITH MORE ROLLERCOASTER RIDES UNDOUBTEDLY
STILL TO COME

THE BEST PERFORMING FUND FOR THE YEAR FIDELITY SELECT SAVINGS & LOAN
INVESTS IN THRIFT INSTITUTIONS MOST OF WHICH ARE SMALL STOCKS IN THE
FOURTH QUARTER THE BEST PERFORMER WAS TINY PBHG GROWTH WHICH FOCUSES ON
SMALL FASTGROWING COMPANIES

THE BOOM IN SMALL STOCKS MAY SEEM LIKE A RECENT PHENOMENON BUT IT HAS BEEN
GOING ON LONG ENOUGH TO HELP KAUFMANN FUND ANOTHER CONNOISSEUR OF SMALL
COMPANIES BECOME THE LEADING FUND FOR THE PAST FIVE YEARS

THE LAUREL FOR THE PAST 10 YEARS GOES TO CGM CAPITAL DEVELOPMENT WHICH
FREQUENTLY LOADS UP ON THE STOCKS OF HUGE COMPANIES BUT THIS FUND TOO
MADE GAINS IN 1992 WITH SMALLCOMPANY STOCKS

PHILIP MORRIS OVER THE YEARS HAS PROBABLY MADE MORE MONEY FOR ME THAN ANY
OTHER COMPANY SAYS G KENNETH HEEBNER PORTFOLIO MANAGER OF CGM CAPITAL
DEVELOPMENT FUND BUT SENTIMENT HAS NO PLACE IN MR HEEBNER'S PORTFOLIO I
SOLD PHILIP MORRIS BY THE WAY LATE LAST SUMMER HE SAYS BECAUSE HE
EXPECTS PRICING TROUBLES IN THE CIGARETTE BUSINESS

MR HEEBNER WHO HAS RUN CGM CAPITAL DEVELOPMENT SINCE 1976 IS WIDELY
CONSIDERED ONE OF THE BEST STOCK PICKERS ON WALL STREET BUT HE IS KNOWN AS
MUCH FOR HIS SELLING AS FOR HIS BUYING

HE PLACES HUGE BETS ON A SMALL NUMBER OF COMPANIES CAPITAL DEVELOPMENT
SPREADS ITS 390 MILLION AMONG ONLY 27 STOCKS AT TIMES HIS FUND OWNS NEARLY
10 OF A COMPANY'S STOCK A LEVEL AT WHICH MANY MUTUAL FUNDS STOP BUYING AS
A MATTER OF POLICY

AT THE FIRST SCENT OF TROUBLE MR HEEBNER AGGRESSIVELY SELLS HIS BIG
POSITIONS HE DENIES THE FREQUENT ACCUSATION THAT HE EGREGIOUSLY KNOCKS DOWN
THE PRICE OF STOCKS WITH THE LAST BLOCK OF SHARES HE SELLS THOUGH HE
ADMITS I DRIVE IT TO A LEVEL WHERE BUYERS CAN BE FOUND

NORMALLY MR HEEBNER FAVORS GROWTH STOCKS THE SHARES OF FASTGROWING
COMPANIES BUT THIS YEAR HE HAS BEEN SELLING HIS GROWTH STOCKS BECAUSE THEY
SEEM EXPENSIVE AND HE HAS BOUGHT CYCLICAL STOCKS WHOSE EARNINGS MOVE
IN TANDEM WITH THE ECONOMY

HE OWNS A LOT OF UAL CORP THE PARENT OF UNITED AIRLINES HE THINKS UAL
SHOULD GAIN ON WEAK COMPETITORS IN ITS DENVER HUB CONTINENTAL AIRLINES AND
IN THE PACIFIC WINGS HOLDINGS' NORTHWEST AIRLINES

MR HEEBNER ALSO LIKES CHRYSLER CORP HE THINKS THE AUTO MAKER WILL GAIN
MARKET SHARE AGAINST GENERAL MOTORS CORP AND AGAINST JAPANESE AUTO
COMPANIES WHICH FACE POLITICAL PRESSURES AND A RISING YEN

BUT HIS BIGGEST POSITION NOW IS A NEW JERSEY THRIFT COLLECTIVE BANCORP
IT'S A CLASSIC HEEBNER INVESTMENT HE SAYS BECAUSE NO ONE'S HEARD OF IT
IT'S VERY CHEAP AND IT HAS WHAT HE CALLS UNDISCOVERED EARNINGS POWER HE
EXPECTS THE COMPANY TO EARN 4 A SHARE IN THE FISCAL YEAR ENDING JUNE 30 IT
SELLS FOR 2725

IN 1992 CAPITAL DEVELOPMENT HAD A TOTAL RETURN OF 1747 INCLUDING
REINVESTED DIVIDENDS MR HEEBNER SAYS THAT HE LOST MONEY ON BIG
PHARMACEUTICAL STOCKS EARLY IN THE YEAR I MADE IT ALL BACK IN SMALL
STOCKS HE SAYS INCLUDING BOMBAY CO A FURNITURE RETAILER

MR HEEBNER 52 YEARS OLD HAS A REPUTATION FOR GETTING WRAPPED UP IN HIS
WORK WHEN CAUGHT UP IN HIS THOUGHTS HE CONCEDES I WILL NOT RECOGNIZE
PEOPLE I KNOW ON THE STREET

CAPITAL DEVELOPMENT IS CLOSED TO NEW INVESTORS

IF IT'S A LITTLE COMPANY AND IT'S GROWING FAST KAUFMANN FUND WANTS A LOOK
AT IT

KAUFMANN'S TWO PORTFOLIO MANAGERS LAWRENCE AURIANA AND HANS UTSCH BUY
COMPANIES WITH EARNINGS GROWING FASTER THAN 20 A YEAR WE LOOK FOR
COMPANIES THAT ARE ALREADY PROFITABLE BEYOND THE VENTURE CAPITAL STAGE
SAYS MR AURIANA THE FUND NORMALLY INVESTS ONLY IN STOCKS WHOSE MARKET
VALUE IS LESS THAN 500 MILLION AND HOLDS SOME AS SMALL AS 25 MILLION THE
FUND'S 300 MILLION PORTFOLIO HAS MORE THAN 100 STOCKS IN IT

LIKE THE STOCKS IN WHICH IT INVESTS KAUFMANN OFTEN HAS BIG PRICE MOVES
AFTER A TOTAL RETURN OF 79 IN 1991 INCLUDING REINVESTED DIVIDENDS THE
FUND PLUNGED MORE THAN 12 IN THE FIRST SEVEN MONTHS OF 1992 THE RALLY IN
SMALL STOCKS BROUGHT THE FUND BACK TO AN 1132 GAIN FOR THE YEAR

MESSRS AURIANA AND UTSCH TOOK OVER THE MANAGEMENT OF KAUFMANN A SMALL AND
INACTIVE FUND AND OPENED ITS DOORS TO NEW MONEY IN 1986 THE TWO HAVE
WORKED TOGETHER SINCE 1975 THE ADVANTAGE IN HAVING A PARTNER SAYS MR
AURIANA IS IT KEEPS THE OTHER GUY INTELLECTUALLY HONEST

AN UNUSUAL ASPECT OF THE FUND IS THAT IT USES 5 TO 10 OF ITS PORTFOLIO TO
SELL STOCKS SHORT SHORTSELLERS WHO SEEK TO PROFIT FROM DECLINING STOCK
PRICES BORROW A COMPANY'S SHARES AND SELL THEM HOPING TO REPLACE THE
LOANED SHARES WITH STOCK THEY BUY LATER AT A LOWER PRICE IT'S A BIT OF A
HEDGE IN A DOWN MARKET MR AURIANA SAYS

HOT NEW ISSUES HAVE BOOSTED THE FUND'S PERFORMANCE LATELY HEALTH MANAGEMENT
SYSTEMS INC WHICH HELPS HOSPITALS DO THEIR BILLING WENT PUBLIC DEC 17 AT
15 AND NOW SELLS FOR 19375 A FORMER LEVERAGED BUYOUT HOSPITALITY
FRANCHISE SYSTEMS INC GRANTS THE FRANCHISES FOR RAMADA INNS DAYS INNS AND
HOWARD JOHNSON MOTELS THE STOCK WHICH WENT PUBLIC DEC 9 AT 16 NOW SELLS
FOR 21625

KAUFMANN FUND DOESN'T IMPOSE A LOAD OR SALES CHARGE ON INVESTORS

THIS IS MY ANDY WARHOL YEAR SAYS DAVID ELLISON WHO MANAGES THE
BESTPERFORMING FUND OF 1992 FIDELITY SELECT SAVINGS & LOAN MR ELLISON
WON HIS MOMENT IN THE SUN BY PICKING THE STOCKS OF THRIFTS THAT SOARED AS
INVESTORS SAW LIGHT AT THE END OF THE TUNNEL FOR THE NORTHEASTERN
REALESTATE MARKET

MR ELLISON'S FUND PREVIOUSLY SPENT SOME TIME IN THE CELLAR IN THE FOURTH
QUARTER OF 1989 WHEN IT SEEMED THAT THE ENTIRE THRIFT INDUSTRY MIGHT SINK
INTO A SEA OF INSOLVENCY MR ELLISON'S FUND WAS THE WORST PERFORMER IN THE
US LOSING 23

COMPANIES GO OUT OF BUSINESS MR ELLISON KEPT SAYING TO HIMSELF BUT
INDUSTRIES DON'T IN THE PAST 18 MONTHS THE INDUSTRY CAME BACK FROM THE
BRINK AND ITS RECOVERY SAYS MR ELLISON IS STILL UNDER WAY

HIS BIGGEST BOOST LAST YEAR CAME FROM HIS LARGE HOLDINGS IN THE STOCKS OF
THRIFTS IN NEW ENGLAND AND NEW YORK BUT WITH LOTS OF CASH FLOWING INTO THE
FUND SWELLING ITS ASSETS TO MORE THAN 200 MILLION UP FROM A BARE 99
MILLION AT THE BEGINNING OF THE YEAR MR ELLISON IS LOOKING FOR OTHER
WAYS TO PLAY THRIFTS AS WELL

HE'S BUYING SAVINGS AND LOANS WITH STRONG FINANCIAL HEALTH THAT STILL SELL
AT CHEAP PRICES OFTEN THESE THRIFTS GET A BOOST WHEN REGULATORS GIVE THEM
THE DEPOSITS OF FAILED INSTITUTIOS THE CONTINUING COMPANY PICKS UP A
FRANCHISE FOR FREE HE SAYS ONE STRONG THRIFT HE IS BETTING ON IS SANDWICH
COOPERATIVE IN SANDWICH MASS

HE ALSO HAS BEEN SLOWLY INCREASING HIS INVESTMENTS ON THE WEST COAST WHOSE
THRIFTS LIKE THEIR ECONOMIES ARE LAGGING BEHIND THE EAST COAST RECOVERY
HE LIKES THE BIG CALIFORNIA THRIFT HF AHMANSON & CO FOR ONE AND HE IS
INVESTING IN SOME INITIAL AND ADDITIONAL STOCK OFFERINGS BY THRIFTS WHEN
THE NEW STOCK BOOSTS THE FINANCIAL HEALTH OF THE INSTITUTION

THE FUND CARRIES A SALES COMMISSION OR LOAD OF 3

TINY PBHG GROWTH WITH ONLY 3 MILLION IN ASSETS PICKED THE RIGHT SMALL
STOCKS IN THE FOURTH QUARTER THOSE STOCKS INCLUDED BOMBAY CO WHICH ALSO
DID WELL FOR CGM CAPITAL DEVELOPMENT'S MR HEEBNER THE STOCK ROSE 47 IN
THE FOURTH QUARTER THE FUND LOOKS FOR FASTGROWING SMALL COMPANIES

PBHG IS MANAGED BY PILGRIM BAXTER GREIG & ASSOCIATES A WAYNE PA FIRM
THAT MOSTLY MANAGES PENSION FUNDS GARY PILGRIM THE FUND'S STOCK PICKER
SAYS IT'S RIDICULOUS TO DISCUSS A SINGLE QUARTER'S PERFORMANCE

THE FUND WHICH CHARGES A COMMISSION OR LOAD OF AS MUCH AS 475 HAS HAD
A ROLLERCOASTER EXISTENCE IN MARCH ALONE FOR INSTANCE THE FUND DROPPED
61 FOR ALL OF 1992 PBHG GROWTH HAD A TOTAL RETURN OF 2851
9301070118 930107 BUSINESS BRIEF MURPHY OIL CORP CONCERN CONSIDERS
ACQUIRING STAKE IN HIBERNIA OIL FIELD

MURPHY OIL CORP IS CONSIDERING THE ACQUISITION OF A 5 INTEREST IN THE 41
BILLION HIBERNIA OIL FIELD PROJECT OFF CANADA'S EAST COAST CANADIAN
GOVERNMENT SOURCES SAID

A SPOKESMAN FOR THE EL DORADO ARK COMPANY SAID IT IS LOOKING FOR NEW
PROPERTIES BUT THAT IT DOESN'T COMMENT ON POSSIBLE INVESTMENTS IN SPECIFIC
PROJECTS

HIBERNIA'S OUTLOOK HAS BEEN UNCERTAIN SINCE GULF CANADA RESOURCES LTD
DECIDED LAST YEAR TO WITHDRAW FROM THE PROJECT BECAUSE OF ITS HEAVY COSTS
TEXACO INC WAS THE CANADIAN GOVERNMENT'S PREFERRED REPLACEMENT FOR GULF BUT
TEXACO SAID THIS WEEK THAT IT WOULDN'T PARTICIPATE

SOME GOVERNMENT OFFICIALS HAVE CALLED ON THE FEDERAL AND NEWFOUNDLAND
GOVERNMENTS TO TAKE OVER AT LEAST PART OF GULF'S 25 INTEREST THE PROJECT'S
OTHER PARTNERS INCLUDE PETROCANADA WITH 25 AND THE CANADIAN DIVISIONS OF
CHEVRON CORP WITH 219 AND MOBIL CORP WITH 281 9301070117 930107
BUSINESS BRIEF WEIRTON STEEL CORP LENDERS AGREE TO CHANGES IN
FINANCIAL COVENANTS

WEIRTON STEEL CORP WEIRTON WVA SAID ITS LENDERS AGREED TO CHANGES IN
FINANCIAL COVENANTS THAT WILL GIVE THE STEELMAKER SIX MONTHS TO IMPROVE ITS
WEAK FINANCES

UNDER THE AGREEMENT WEIRTON'S BANK LENDERS LED BY CHASE MANHATTAN BANK
AND ITS INSTITUTIONAL LENDERS WILL ALLOW THE STEELMAKER TO MAINTAIN A
DEBTTOEQUITY RATIO OF 2 TO 1 UNTIL JUNE 30 THE RATIO WAS SCHEDULED TO
TIGHTEN TO 175 TO 1 ON DEC 31 THE BANK LENDERS ALSO AGREED TO LOWER THEIR
TANGIBLE NET WORTH REQUIREMENTS THROUGH JUNE 30 TO 240 MILLION FROM 260
MILLION INSTITUTIONAL LENDERS REDUCED THE REQUIREMENT TO 245 MILLION

WEIRTON WHICH HOPES TO OFFER 125 MILLION OF SENIOR NOTES THIS QUARTER
SAID IT HADN'T VIOLATED ANY COVENANTS BUT WAS IN DANGER OF DOING SO WEIRTON
SAID THE AMENDED CREDIT FACILITIES COVER 167 MILLION IN DEBT OUTSTANDING

WEIRTON STEEL CORP'S LENDERS AGREED TO RAISE THE COMPANY'S DEBTTOEQUITY
RATIO REQUIREMENT TO 21 TO 1 FROM 2 TO 1 THROUGH JUNE 30 THE COMPANY
PROVIDED INCORRECT INFORMATION FOR AN ARTICLE YESTERDAY IN WHICH IT WAS
REPORTED THAT LENDERS AGREED TO MAINTAIN THE RATIO REQUIREMENT AT 2 TO 1
THE RATIO WAS SCHEDULED TO TIGHTEN TO 175 TO 1 ON DEC 31 9301070116
930107 NUCOR TO BUILD IRONCARBIDE PLANT TO AID MINIMILLS  BY
DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL

NUCOR CORP SAID IT WILL BUILD AN IRONCARBIDE PLANT IN TRINIDAD A MOVE THAT
WILL AID STEEL MINIMILLS' ASSAULT ON LARGER RIVALS BY GIVING THEM A STABLE
AND HIGHQUALITY SUPPLY OF METAL

THE PLANT IS THE FIRST OVERSEAS VENTURE FOR THE FASTGROWING CHARLOTTE
NC MINIMILL OPERATOR AND IS BELIEVED TO BE THE FIRST DIRECTREDUCED IRON
PLANT TO BE BUILT BY ANY US STEELMAKER

DIRECTREDUCED IRON OF WHICH IRON CARBIDE IS ONE FORM WILL HELP MINIMILLS
EXPAND BY GIVING THEM A FORM OF IRON THAT CAN BE USED IN THEIR ELECTRIC
FURNACES IN PLACE OF SCRAP STEEL WHICH IS IMPURE AND SUBJECT TO WIDE SWINGS
IN PRICE THE DIRECTREDUCED IRON PROCESSES LET MINIMILLS DO THE SAME THING
INTEGRATED STEEL MILLS' BLAST FURNACES DO BUT ON A SMALLER SCALE AND
WITHOUT THE USE OF COKE

NUCOR'S PLANT ITSELF WILL BE RELATIVELY MODEST IT WILL COST 60 MILLION
TO BUILD AND WILL PRODUCE 320000 METRIC TONS OF IRON CARBIDE A YEAR BUT
IS SYMBOLIC NUCOR CAN QUADRUPLE THE SIZE OF THE PLANT AT THE SITE AND A
SUCCESSFUL SHOWING BY NUCOR PROBABLY WILL LEAD OTHER US STEELMAKERS TO
BUILD SIMILAR PLANTS

IF THE FIRST WORKS OUT EXTREMELY WELL IT CAN BE DOUBLED AND REDOUBLED
SAID KEITH E BUSSE A NUCOR VICE PRESIDENT WHO MANAGES THE COMPANY'S MILL
IN CRAWFORDSVILLE IND THAT WILL GIVE US A VERY DEPENDABLE AND STABLE
SOURCE OF SUPPLY

NUCOR'S PROCESS BY ALLOWING THE COMPANY TO MAKE HIGHQUALITY STEEL FROM
IRON ORE WILL FURTHER BLUR THE DISTINCTION BETWEEN THE TRADITIONAL
INTEGRATED MILLS AND THEIR UPSTART RIVALS THE MINIMILLS ARE TAKING ON THE
CHARACTERISTICS AND ROLE OF THE INTEGRATEDS SAID DONALD BARNETT A STEEL
INDUSTRY CONSULTANT IN MCLEAN VA HE SAID SIMILAR PLANTS HAVE BEEN
CONSIDERED BY MANY US MILLS MOST EVERYBODY IS LOOKING AT IT AND KICKING
THE TIRES HE SAID IF NUCOR'S WORKS EVERYBODY'S IN

NUCOR SAID IT WILL BEGIN CONSTRUCTION IN THE CURRENT QUARTER AFTER GAINING
REGULATORY APPROVAL IT EXPECTS TO BEGIN PRODUCTION AT THE PLANT IN LATE
1994 NUCOR WILL SHIP THE IRON CARBIDE TO ITS NEW SHEETSTEEL MILLS IN THE
US NUCOR SAID ITS PLANT WILL BE THE FIRST IN THE WORLD TO MAKE IRON
CARBIDE COMMERCIALLY USING NATURAL GAS THOUGH THERE ARE SOME 25 OTHER
PLANTS THAT MAKE DIRECTREDUCED IRON FROM IRON ORE USING DIFFERENT
PROCESSES

NUCOR HAS BEEN CONSIDERING SUCH A PLANT FOR SOME TIME AND TALKED OF
BUILDING A SIMILAR FACILITY IN VENEZUELA WITH OREGON STEEL MILLS INC BEFORE
DROPPING THOSE PLANS BY SELECTING TRINIDAD NUCOR WILL GAIN A CHEAP SUPPLY
OF NATURAL GAS AND LABOR AND ACCESS TO BRAZILIAN ORE MINES 9301070115
930107 CREDIT MARKETS CORPORATE BOND SALES NEAR RECORD  LOW
INTEREST RATES SPUR BIG OFFERINGS TOTALING 47 BILLION  BY
THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK LURED BY THE LOWEST INTEREST RATES IN MONTHS CORPORATIONS
RUSHED TO MARKET AND SOLD A STAGGERING 47 BILLION OF NEW BONDS YESTERDAY
THE SECOND LARGEST SINGLEDAY TOTAL EVER AND INVESTORS COULDN'T SEEM TO GET
ENOUGH

INVESTOR DEMAND FOR NEW CORPORATE BONDS ESPECIALLY THOSE WITH MATURITIES OF
20 YEARS OR MORE TRIGGERED A FEEDING FRENZY SAID BARBARA KENWORTHY A
PORTFOLIO MANAGER AT DREYFUS CORP

SO RAVENOUS WERE INVESTORS SHE SAID THAT ONE OF MY SALESMEN WAS TELLING
ME THAT PEOPLE PRACTICALLY STARTED FIGHTING ON OUR TRADING FLOOR TO GET
THEIR ALLOCATIONS FOR CERTAIN NEW CORPORATE BONDS

DEMAND WAS SO STRONG LATE IN THE DAY THAT CABLE TELEVISION COMPANY
TELECOMMUNICATIONS INC MORE THAN DOUBLED THE SIZE OF ITS OFFERING OF
10YEAR NOTES AND 30YEAR BONDS TO 105 BILLION FROM A PLANNED 400
MILLION PETER MILHAUPT DIRECTOR OF FIXED INCOME CAPITAL MARKETS AT FIRST
BOSTON CORP THE LEAD UNDERWRITER SAID THE OFFERING WAS BOOSTED DUE TO
OVERWHELMING DEMAND

THE DAY'S TOTAL OF NEW CORPORATE BONDS SOLD DOESN'T INCLUDE A 125 BILLION
OFFERING OF NONCALLABLE 30YEAR GLOBAL BONDS BY THE WORLD BANK THAT WAS
LAUNCHED YESTERDAY BUT WILL BE OFFICIALLY SOLD OVER A 24HOUR PERIOD ENDING
THIS MORNING THE WORLD BANK BONDS HAVE THE LONGEST MATURITY EVER FOR A
GLOBAL BOND ISSUE

DEMAND FOR THE DOLLARDENOMINATED ISSUE WAS EXTREMELY STRONG IN EUROPE AND
VERY STRONG IN THE US SAID BANK OFFICIALS ACCORDING TO MS KENWORTHY
THE WORLD BANK DEAL LOOKED LIKE IT WAS OVERSUBSCRIBED THOUGH OFFICIAL
RESULTS WON'T BE RELEASED UNTIL LATER TODAY

THE CURRENT BOND MARKET RALLY WHICH PUSHED THE YIELD FOR THE BENCHMARK
30YEAR TREASURY BOND TO THREEMONTH LOWS WAS ONE IMPETUS FOR THE RUSH OF
NEW CORPORATE BORROWING LATE YESTERDAY THE 30YEAR TREASURY BOND YIELDED
735 UP FROM 733 ON TUESDAY AS ITS PRICE DROPPED 1/4 POINT TO 103 7/32

BUT STRONG INVESTOR DEMAND MADE IT POSSIBLE FOR UNDERWRITERS TO QUICKLY SELL
A MAJORITY OF YESTERDAY'S BOND OFFERINGS ACCORDING TO TRADERS AND MONEY
MANAGERS EXPECTATIONS OF LOW INFLATION SLOW ECONOMIC GROWTH AND A MORE
CONCERTED EFFORT BY PRESIDENTELECT CLINTON TO REDUCE THE BUDGET DEFICIT ALL
HELPED TO BOOST INVESTOR INTEREST

ACCORDING TO UNDERWRITERS AND MONEY MANAGERS THERE WAS BUYING YESTERDAY BY
A WIDE RANGE OF INVESTORS FROM INSURANCE COMPANIES AND MUTUAL FUNDS TO
FOREIGN INVESTORS AND PENSION FUNDS

CORPORATE BORROWERS WILL BE PUSHING OUT BONDS TO MEET THAT DEMAND ACCORDING
TO MARK SIEGEL MANAGING DIRECTOR OF THE FIXEDINCOME SYNDICATE DEPARTMENT
AT MORGAN STANLEY & CO AS MUCH AS 30 BILLION IN NEW CORPORATE BOND ISSUES
COULD BE PRICED THIS MONTH WHICH WOULD MAKE IT THE BIGGEST MONTH SINCE LAST
JANUARY WHEN 353 BILLION IN NEW CORPORATE BONDS WERE SOLD

DESPITE ALL OF THE NEW ISSUES PRICES OF OUTSTANDING BONDS IN THE CORPORATE
BOND MARKET REMAINED STABLE YESTERDAY OFTEN WHEN THERE IS A FLOOD OF NEW
ISSUES PRICES OF OLDER BONDS SUFFER AS INVESTORS SELL SOME OF THE BONDS
THEY OWN TO MAKE ROOM FOR NEW ONES

I THOUGHT THE DEMAND DURING THE MONTH WOULD BE GREATER THAN MANY PEOPLE
THOUGHT SAID MS KENWORTHY BUT I HAVE TO BE SURPRISED AT HOW WELL THESE
DEALS HAVE GONE CONSIDERING ALL THE SUPPLY COMING DOWN

HOWEVER THE FLOOD OF NEW CORPORATE BONDS COULD TEMPORARILY SLOW BY THE END
OF THIS WEEK AS INVESTORS PREPARE FOR THE SCHEDULED RELEASE OF THE MONTHLY
EMPLOYMENT REPORT TOMORROW MORNING THE FIRST OFFICIAL LOOK AT THE STATE OF
THE NATION'S ECONOMY IN DECEMBER BUT TRADERS SAY THE FLOOD OF BOND
OFFERINGS IS LIKELY TO RESUME NEXT WEEK IF INTEREST RATES REMAIN STEADY

YESTERDAY'S NEWISSUE TOTAL FELL JUST SHORT OF THE RECORD 52 BILLION OF
CORPORATE BOND ISSUED ON JAN 8 1992 ACCORDING TO SECURITIES DATA CO BUT
TOPPED THE MAY 12 1989 TOTAL OF 46 BILLION

DESPITE YESTERDAY'S SURGE OF CORPORATE OFFERINGS AND A TOTAL OF 16
BILLION IN NEW BONDS SOLD MONDAY AND TUESDAY THE SPREAD OR YIELD
DIFFERENTIAL BETWEEN CORPORATE BONDS AND TREASURYS HAS REMAINED STEADY OR
NARROWED A TOUCH CORPORATE TRADERS SAID

OLDER INVESTMENTGRADE CORPORATE BONDS GENERALLY ENDED LITTLE CHANGED WHILE
THE MARKET FOR NEW JUNK BONDS POSTED ANOTHER STRONG SHOWING WITH MOST
ISSUES UP 1/4 TO 1/2 POINT

THE STRONG DEMAND YESTERDAY FOR THE MANY NEW CORPORATE BONDS WITH LONG
MATURITIES IS A SIGN SAY MONEY MANAGERS AND MARKET ANALYSTS THAT INVESTORS
ARE LESS WORRIED ABOUT THE POSSIBILITY THAT PRESIDENTELECT CLINTON WILL
ENLARGE THE BUDGET DEFICIT AND USE SHORTTERM SPENDING TO BOOST THE ECONOMY
A LARGER DEFICIT AND GREATER GOVERNMENT SPENDING COULD BOTH LEAD TO
INFLATION WHICH IS BAD FOR BONDS PARTICULARLY THOSE WITH LONGER
MATURITIES

ANOTHER FACTOR CONTRIBUTING TO STRONG DEMAND YESTERDAY ACCORDING TO MS
KENWORTHY WAS INTEREST FROM FOREIGN BUYERS WE HAVE SEEN FOREIGN INVESTORS
COMING IN THE MARKET PRETTY AGGRESSIVELY SHE SAID JAPANESE GERMAN AND
BRITISH INVESTORS HAVE BEEN STRONG BUYERS SO FAR THIS YEAR SHE SAID

ONE REASON FOR THIS FOREIGN INTEREST IS THE RECENT STRENGTH OF THE DOLLAR
SINCE EARLY SEPTEMBER THE DOLLAR HAS RISEN 18 AGAINST THE MARK A STRONG
DOLLAR MAKES DOLLARDENOMINATED SECURITIES MORE ATTRACTIVE TO FOREIGN
INVESTORS ESPECIALLY THOSE BATTERED BY THE CONTINUED FLUCTUATIONS OF
EUROPEAN CURRENCIES OF THE PAST FEW MONTHS

DEALERS AND MONEY MANAGERS POINTED OUT THAT MANY US INSTITUTIONAL
INVESTORS INCLUDING MUTUAL FUNDS AND INSURANCE COMPANIES HAD HELD OFF FROM
BUYING CORPORATE BONDS AT YEAR'S END OUT OF CONCERNS THAT THE BOND MARKET
WAS DUE FOR A SELLOFF THE SELLOFF DIDN'T HAPPEN AND THESE INVESTORS
BEGAN THE YEAR WITH LARGE HOLDINGS OF CASH THAT NEEDED TO BE INVESTED

MS KENWORTHY SAID THAT RECENT DISCUSSIONS BETWEEN MARRIOTT CORP AND
BONDHOLDERS TO DISCUSS MODIFICATIONS IN MARRIOTT'S RESTRUCTURING PLANS ALSO
ENCOURAGED INVESTORS CORPORATE BOND INVESTORS WERE SPOOKED WHEN MARRIOTT
ANNOUNCED IN OCTOBER THAT IT WOULD SPIN OFF ITS HEAVILY INDEBTED REAL ESTATE
AND CONCESSIONS BUSINESS FROM ITS PROFITABLE HOTEL OPERATIONS AN
ANOUNCEMENT THAT CAUSED THE PRICE OF MARRIOTT BONDS TO PLUMMET MANY
INVESTORS FEARED OTHER COMPANIES WOULD ATTEMPT THE SAME STRATEGY

ONE DEAL THAT STOOD OUT FOR THE STRENGTH OF DEMAND FROM INVESTORS WAS AN
OFFERING OF 100 MILLION OF 30YEAR BONDS BY DILLARD DEPARTMENT STORES INC
THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 067 PERCENTAGE POINT OVER
30YEAR TREASURY BONDS TO YIELD 7995 AND WERE RATED SINGLEA2 BY MOODY'S
INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP
ACCORDING TO MR SIEGEL OF MORGAN STANLEY THE LEAD UNDERWRITER THE DEAL
WENT VERY WELL IN LARGE PART BECAUSE INVESTORS WERE SEEKING BONDS WITH
LONGER MATURITIES MR SIEGEL SAID THAT DEMAND WAS ALSO STRENGTHENED BY ONE
INSTITUTIONAL INVESTOR WHO PURCHASED MORE THAN 25 OF THE DILLARD BONDS

YESTERDAY'S ISSUERS INCLUDED MCI COMMUNICATIONS CORP PHILLIPS PETROLEUM
CO THE PROVINCE OF BRITISH COLUMBIA CANADA DU PONT CO NATIONSBANK
AND FLORIDA POWER & LIGHT CO

MCI SOLD 200 MILLION OF SEVENYEAR NONCALLABLE NOTES AT A YIELD OF 7125
AND 200 MILLION OF 30YEAR NOTES NONCALLABLE FOR 10 YEARS AT A YIELD OF
832 BOTH ISSUES WERE RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P MERRILL
LYNCH & CO WAS THE LEAD UNDERWRITER

PHILLIPS PETROLEUM SOLD 250 MILLION OF 30YEAR BONDS NONCALLABLE FOR 10
YEARS AT A YIELD OF 849 THE ISSUE WAS RATED BAA2 BY MOODY'S AND
TRIPLEB BY S&P MORGAN STANLEY & CO WAS THE LEAD UNDERWRITER

BRITISH COLUMBIA SOLD 500 MILLION OF NONCALLABLE 10YEAR NOTES AT A YIELD
OF 7105 THE ISSUE WAS RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY
S&P AND WERE SOLD THROUGH LEHMAN BROTHERS INC

MR SIEGEL SAID THAT INVESTORS ARE BASICALLY BECOMING MORE COMFORTABLE
MORE BULLISH AND ARE LOOKING FOR WAYS TO ENHANCE THEIR RETURNS HE SAID
THAT SLOW ECONOMIC GROWTH AND LOW INFLATION HAVE EMBOLDENED INVESTORS TO BUY
MORE SECURITIES WITH MATURITIES OF 20 YEARS OR MORE WHICH ARE MUCH MORE
SENSITIVE TO INFLATION AND INTEREST RATE FLUCTUATIONS THAN SHORTERDATED
SECURITIES

PRICES OF TREASURY NOTES AND BONDS ENDED MODERATELY LOWER UNDER PRESSURE
FROM LIGHT HEDGING AGAINST AN INFLUX OF CORPORATE DEBT DEALERS EXPRESSED A
GREAT DEAL OF NERVOUSNESS THAT THE HEDGING WOULD DEPRESS TREASURYS

THE BENCHMARK 30YEAR BOND DROPPED 1/4 POINT TO 103 6/32 FOR A YIELD OF
735 UP FROM 733 ON TUESDAY

UNDERWRITERS OFTEN HEDGE AGAINST POTENTIAL LOSSES WHEN UNDERWRITING NEW
CORPORATE ISSUES BY SHORTSELLING TREASURYS WITH COMPARABLE MATURITIES AN
UNDERWRITER SHORTSELLS BY SELLING A BORROWED SECURITY IN THE EXPECTATION
THAT HE WILL BE ABLE TO BUY IT BACK AT A LOWER PRICE AND POCKET THE
DIFFERENCE BY SHORTSELLING UNDERWRITERS CAN PROTECT THEMSELVES AGAINST
PRICE DROPS IN THE VALUE OF CORPORATE BONDS THEY HAVE PURCHASED FROM ISSUERS
AND ARE SELLING TO INVESTORS

HOWEVER TRADERS NOTED THAT THE MARKET PERFORMED RELATIVELY WELL GIVEN THE
HUGE AMOUNT OF CORPORATE SUPPLY

YOU WOULD NORMALLY THINK THAT ON THIS MUCH SUPPLY YOU WOULDN'T BE ABLE TO
SELL NEW CORPORATE BONDS THAT QUICKLY AND YOU WOULD HAVE TO AT LEAST HEDGE
IT OVERNIGHT IN THE TREASURY MARKET SAID JAMES MULLIN HEAD OF CAPITAL
MARKETS AT KIDDER PEABODY & CO INC HOWEVER MOST OF THE NEW CORPORATE
BOND DEALS WORKED MR MULLIN SAID THUS LIMITING THE AMOUNT OF HEDGING IN
THE TREASURY MARKET

THE TREASURY DEPARTMENT ANNOUNCED THAT NEXT WEEK'S AUCTION OF SEVENYEAR
NOTES WILL TOTAL 975 BILLION UNCHANGED FROM THE LAST AUCTION IN OCTOBER
IN WHENISSUED TRADING LATE YESTERDAY THE SEVENYEAR NOTE TO BE AUCTIONED ON
JAN 13 YIELDED 635

MEANWHILE THE PRICE OF 10YEAR TREASURY NOTES DROPPED LESS THAN 1/4 POINT TO
98 5/32 FOR A YIELD OF 662 UP FROM 660 THE PRICE OF THE FIVEYEAR NOTE
DROPPED 1/8 POINT TO 100 8/32 FOR A YIELD OF 593 UP FROM 590

MOST PLAYERS WERE CONTENT TO STICK TO THE SIDELINES YESTERDAY UNWILLING TO
COMMIT THEMSELVES AHEAD OF THE DECEMBER EMPLOYMENT REPORT

I THINK PEOPLE WERE PROBABLY WAITING FOR THE EMPLOYMENT DATA ON FRIDAY AND
NOTHING ELSE REALLY SEEMED TO BOTHER THEM SAID JAMES KENNEY HEAD OF
GOVERNMENT TRADING AT PRUDENTIAL SECURITIES INC

THE AVERAGE FORECAST AMONG ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS
CALLS FOR NONFARM PAYROLL EMPLOYMENT TO POST AN INCREASE OF JUST OVER 80000
FOR DECEMBER THE UNEMPLOYMENT RATE IS EXPECTED TO HOLD STEADY AT 72

VIRGINIA FARED WELL WITH ITS FIRST GENERAL OBLIGATION BOND SALE SINCE 1978

THE STATE'S 100 MILLION 1993 SERIES A PUBLIC FACILITIES GOS WERE WON BY A
FIRST BOSTON CORP GROUP IN COMPETITIVE BIDDING AND GIVEN YIELDS THAT RANGE
FROM 280 IN 1994 TO 590 IN 2013

THE GOS ARE PART OF THE 613 MILLION BLOCK OF BONDS APPROVED BY VIRGINIA
VOTERS IN NOVEMBER VOTERS LAST APPROVED GENERAL OBLIGATION BONDS IN 1977
THE 613 MILLION OF BONDS ARE EXPECTED TO BE SOLD AT SIXMONTH INTERVALS
BETWEEN NOW AND 1996

WHILE VIRGINIA HAS SOLD SOCALLED DOUBLEBARRELED BONDS IN RECENT YEARS IT
IS SEEN AS A POSITIVE SIGN THAT VOTERS APPROVED THE GOS AT A TIME WHEN
VOTERS IN SOME OTHER STATES ARE STRIVING TO PUT A LID ON BOND SALES
VIRGINIA'S DOUBLEBARRELED BONDS WHICH DON'T REQUIRE VOTER APPROVAL ARE
BACKED BY REVENUE FROM VARIOUS PROJECTS AND IF NEEDED FUNDS FROM THE STATE
THAT ARE RAISED BY TAXES

WE WERE VERY FORTUNATE THAT IT WAS OVERWHELMINGLY APPROVED BY VOTERS SAID
DANNY PAYNE VIRGSINIA'S DEPUTY SECRETARY OF FINANCE HE ATTRIBUTED THE
APPROVAL TO THE STATE'S LOW DEBT CAPACITY AND TRIPLEA RATINGS FROM MOODY'S
INVESTORS SERVICE INC STANDARD & POOR'S CORP AND FITCH INVESTORS SERVICE
INC

MORTGAGE SECURITIES ENDED WITH SLIM PRICE DROPS SURRENDERING SOME GAINS
FROM EARLIER IN THE WEEK

THE 7 1/2 MORTGAGE SECURITIES FOR JANUARY DELIVERY ISSUED BY ALL THREE
AGENCIES WERE 3/32 SOFTER WITH GOVERNMENT NATIONAL MORTGAGE ASSOCIATION AT
100 20/32 FEDERAL HOME LOAN MORTGAGE CORP GOLDS AT 100 21/32 AND FEDERAL
NATIONAL MORTGAGE ASSOCIATION AT 100 15/32

MORTGAGE SECURITIES SHOULD PERFORM AT LEAST AS WELL AS TREASURYS IN THE NEXT
FEW MONTHS MARKET PARTICIPANTS SAY THAT VIEW REFLECTS EXPECTATIONS THAT
ISSUANCE OF MORTGAGE PASSTHROUGH SECURITIES WILL DROP FROM ITS 1992 RECORD
PACE WHILE DEMAND WILL STAY STRONG FROM CASHHEAVY INVESTORS

AFTER THE MORTGAGE MARKET OUTPERFORMED INTERMEDIATE TREASURYS MONDAY AND
TUESDAY MORTGAGE SECURITIES YIELDS NARROWED IN RELATION TO THOSE OF
TREASURYS

THIS MAKES SOME PARTICIPANTS KIND OF LEERY SAYS A COLLATERALIZED MORTGAGE
OBLIGATION SECURITIES TRADER

SPREADS ARE ABOUT AS TIGHT AS THEY'VE BEEN FOR A LONG TIME AND ARE SEEN
BY MANY AS GETTING TIGHTER AS THE YEAR PROGRESSES HE ADDS

TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9301070114 930107 BUSINESS
BRIEF CONSOLIDATED NATURAL GAS CO COMPANY TO PAY 60 MILLION FOR
PART OF NATURAL GAS FIELD

CONSOLIDATED NATURAL GAS CO SAID IT WILL PAY 60 MILLION TO BUY PART OF A
SHELL OFFSHORE INC GULF OF MEXICO NATURAL GAS FIELD

THE PAYMENT WHICH WILL GO TOWARD THE FIELD'S FIRST PHASE OF DEVELOPMENT
WILL GIVE CONSOLIDATED HALF OF SHELL OFFSHORE'S 75 STAKE SHELL OFFSHORE IS
OWNED BY ROYAL DUTCH PETROLEUM THE INVESTMENT IS BEING MADE THROUGH THE
COMPANY'S CNG PRODUCING CO SUBSIDIARY

THE FIELD KNOWN AS POPEYE IS 140 MILES SOUTH OF NEW ORLEANS IN ABOUT 2000
FEET OF WATER PRODUCTION SHOULD BEGIN IN 1995 SHELL OFFSHORE DISCOVERED
THE FIELD IN 1985

MOBIL OIL EXPLORATION & PRODUCING INC A MOBIL CORP UNIT AND BRITISH
PETROLEUM ARE ALSO INVOLVED IN THE VENTURE 9301070113 930107 BUSINESS
BRIEF PHILLIPS PETROLEUM CO SCOTTISH DEVELOPMENT COST ESTIMATED AT
438 MILLION

PHILLIPS PETROLEUM CO SAID IT EXPECTS CAPITAL SPENDING FOR DEVELOPMENT OF
ITS 365 SHARE OF TWO OIL AND NATURAL GAS FIELDS OFF THE COAST OF SCOTLAND
TO BE ABOUT 438 MILLION

A PHILLIPS SPOKESMAN SAID THE SPENDING FORECAST DOESN'T CHANGE ITS
PREVIOUSLY ANNOUNCED ESTIMATE FOR 12 BILLION IN OVERALL CAPITAL SPENDING
BY THE COMPANY IN 1993

THE TWO FIELDS NAMED JUDY AND JOANNE ARE EXPECTED TO PRODUCE ABOUT 65000
BARRELS OF OIL AND NATURAL GAS LIQUIDS AND 260 MILLION CUBIC FEET OF NATURAL
GAS PER DAY THE COMPANY SAID THEY ARE LOCATED 175 MILES SOUTHEAST OF
ABERDEEN SCOTLAND

DRILLING IS EXPECTED TO BEGIN IN JULY DEVELOPMENT OF THE FIELDS IS A JOINT
VENTURE PHILLIPS'S PARTNERS ARE AGIP UNITED KINGDOM LTD WITH A 33 SHARE
AND BRITISH GAS EXPLORATION & PRODUCTION LTD WITH A 305 INTEREST

PHILLIPS IS BASED IN BARTLESVILLE OKLA 9301070112 930107 QUARTERLY
MUTUAL FUNDS REVIEW FUND EVOLUTION EXTINCTION OF THE WEAK MAKES THE
SURVIVORS LOOK EVEN FITTER  BY ROBERT MCGOUGH STAFF REPORTER OF
THE WALL STREET JOURNAL

QUESTION HOW IS THE AVERAGE MUTUAL FUND LIKE A BOTTLE OF WINE

ANSWER IT IMPROVES WITH AGE

CONSIDER 1986 A HEARTY YEAR IF NOT A VINTAGE ONE FOR MUTUAL FUNDS LIPPER
ANALYTICAL SERVICES INC WHICH TRACKS MUTUAL FUND PERFORMANCE REPORTED AT
THE TIME THAT THE AVERAGE STOCK FUND HAD A TOTAL RETURN OF 159 FOR THAT
YEAR

BUT AS MEASURED TODAY SIX YEARS LATER THE AVERAGE STOCK FUND IN 1986 DID
CONSIDERABLY BETTER THAN THAT NOW LIPPER REPORTS THAT THE AVERAGE STOCK
FUND IN 1986 GAINED 174

IN OTHER WORDS WITHOUT PICKING A SINGLE STOCK THE AVERAGE STOCK FUND HAS
SEEN ITS 1986 PERFORMANCE IMPROVE BY 15 PERCENTAGE POINTS HOW IS THAT
POSSIBLE

HISTORICAL RETURNS FOR FUNDS ARE ARTIFICIALLY INFLATED BY A STATISTICAL
QUIRK CALLED SURVIVORSHIP BIAS

SURVIVORSHIP BIAS STEMS FROM THE DARWINIAN WINNOWING OUT OF UNSUCCESSFUL
MUTUAL FUNDS THE FUNDS THAT DISAPPEAR ARE PREDICTABLY THE LEAST
SUCCESSFUL FUNDS ONES THAT FAILED TO ATTRACT ENOUGH ASSETS TO REMAIN
VIABLE OR WHOSE RESULTS SIMPLY BECAME AN EMBARRASSMENT BUT AS THEIR POOR
PERFORMANCE DISAPPEARS FROM THE RECORD BOOKS THE PERFORMANCE OF THE
AVERAGE MUTUAL FUND GETS INFLATED

SOME ARGUE THAT THE MIRAGE OF SURVIVORSHIP BIAS DISTORTS INVESTORS'
DECISIONS THE POINT IS THAT PEOPLE CAN BE LED TO MAKE MISTAKEN
ASSETALLOCATION DECISIONS FOR THEMSELVES SAYS PHILIP FORTUNA A MANAGER
DIRECTOR AT SCUDDER STEVENS & CLARK PEOPLE LIKE TO LOOK FOR HIGH RETURNS
WHAT IF THOSE RETURNS ARE MISSTATED

SINCE 1985 SURVIVORSHIP BIAS HAS MADE THE AVERAGE MUTUAL FUND LOOK BETTER
IN SIX OUT OF SEVEN YEARS THE EXCEPTION WAS 1991 WHEN FUNDS INVESTING IN
SMALL STOCKS SOARED AND MANY MUTUAL FUNDS BEAT THE BROAD STOCK MARKET
AVERAGES SOME OF THE FUNDS THAT DISAPPEARED HAD GOOD RESULTS THAT YEAR

LONG TERM THE TREND TOWARD INFLATING AVERAGE FUND RETURNS IS CLEAR ALL
THE BAD RECORDS GET MERGED OUT AND THE INDUSTRY LOOKS BETTER SAYS DON
PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER
MORNINGSTAR HOPES EVENTUALLY TO CORRECT SURVIVORSHIP BIAS IN ITS OWN
DATABASE

SURVIVORSHIP BIAS BEDEVILS NOT JUST MUTUAL FUNDS BUT ALMOST ALL ATTEMPTS TO
ANALYZE THE PERFORMANCE OF FINANCIAL MARKETS IN A STATISTICAL OR
QUANTITATIVE MANNER SURVIVORSHIP BIAS SAYS MR FORTUNA IS THE CRAZY
AUNT IN THE CLOSET OF QUANTITATIVE ANALYSIS

SOME PEOPLE CONTEND THAT IT'S NOT WORTH DRAGGING THE AUNT OUT OF THE CLOSET
I DON'T THINK IT'S AN INVESTOR ISSUE IT'S AN ACADEMIC ISSUE SAYS A
MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL YOU DON'T BUY THE AVERAGE
FUND YOU BUY AN EXISTING FUND

BUT BY INFLATING THE RETURNS OF THE AVERAGE FUND SURVIVORSHIP BIAS MAY GIVE
INVESTORS A MISTAKEN IDEA OF HOW LIKELY THE AVERAGE FUND IS TO BEAT AN
UNMANAGED INDEX FUND INDEX FUNDS TRY TO KEEP EXPENSES LOW AND TRACK A
MARKET BENCHMARK RATHER THAN ARDUOUSLY PICKING STOCKS TO BEAT THE MARKET

THOUGH THE NUMBER OF FUNDS IN EXISTENCE CONTINUES TO GROW BY LEAPS AND
BOUNDS DOZENS AND DOZENS OF MUTUAL FUNDS DISAPPEAR EVERY YEAR IN THE PAST
12 MONTHS MORE THAN 40 STOCK FUNDS DROPPED OUT OF THE LIPPER DATABASE

GIVEN TIME THE GRIM REAPER CUTS A WIDE SWATH THROUGH THE FUND INDUSTRY AT
THE END OF 1985 LIPPER WAS FOLLOWING 634 FUNDS BY THE END OF 1992 THE
NUMBER OF FUNDS ON RECORD FOR 1985 HAD SHRUNK TO 504 FULLY 20 OF THE FUNDS
HAD VANISHED

WHERE DID THEY GO WHILE SOME GO OUT OF BUSINESS THE VAST MAJORITY OF THESE
POORPERFORMING FUNDS GET MERGED INTO OTHER FUNDS WITH BETTER RECORDS

RECENTLY EATON VANCE A BOSTON MANAGER OF MUTUAL FUNDS DECIDED TO MERGE
TWO OF ITS STOCK FUNDS THE STATED PURPOSE BEING TO SPREAD FIXED FUND COSTS
OVER A LARGER ASSET BASE OF THE TWO FUNDS EATON VANCE SPECIAL EQUITIES HAS
A 10YEAR TOTAL RETURN INCLUDING PRICE CHANGES AND REINVESTED DIVIDENDS OF
111 A YEAR NAUTILUS FUND HAS A 10YEAR RETURN OF 42 A YEAR

GUESS WHICH FUND WILL BE THE SURVIVOR WHOSE RECORD REMAINS ON DATABASES
AND IN ADVERTISEMENTS IT WON'T BE NAUTILUS WHICH SPENT SEVEN OF THE PAST
10 YEARS IN THE BOTTOM 25 OF ALL MUTUAL FUND PERFORMERS NAUTILUS'S RECORD
WILL SIMPLY DISAPPEAR

NAUTILUS WAS A BIG HIT INITIALLY SAYS AN EATON VANCE SPOKESMAN WHEN IT
INVESTED VENTURE CAPITAL MONEY IN APPLE COMPUTER BEFORE THE PERSONAL
COMPUTER MAKER WENT PUBLIC ALAS WE NEVER FOUND ANOTHER APPLE THE
SPOKESMAN SAYS NAUTILUS WILL MERGE INTO SPECIAL EQUITIES SOMETIME IN MARCH

THE REAPER IS ALSO CALLING FOR ALLIANCE HIGH YIELD PORTFOLIO THE FUND EKED
OUT ONLY A 44 ANNUAL GAIN IN THE PAST FIVE YEARS HALF THE PERFORMANCE OF
THE AVERAGE JUNK BOND FUND

NOW ALLIANCE HIGH YIELD WITH 110 MILLION IN ASSETS IS MERGING INTO
ALLIANCE MONTHLY INCOME PORTFOLIO PROXY DOCUMENTS FROM THE FUNDS SAY THAT
THE HIGH YIELD FUND HAS BEEN RAISING THE CREDIT QUALITY WITHIN ITS
PORTFOLIO SO IT INCREASINGLY RESEMBLES THE MONTHLY INCOME FUND WHICH
INVESTS IN INVESTMENTGRADE BONDS

MONTHLY INCOME HAS ONLY 67 MILLION IN ASSETS BUT ALTHOUGH IT IS LESS THAN
TWOTHIRDS THE SIZE OF THE JUNK BOND FUND MONTHLY INCOME WILL BE THE
SURVIVING FUND

POOF THE OLD JUNK BOND FUND AND THE SORRY PERFORMANCE THAT ITS VERY REAL
SHAREHOLDERS SUFFERED WILL SOON CEASE TO EXIST IN MUTUAL FUND DATABASES
ACCORDING TO DATA FROM MORNINGSTAR THE AVERAGE JUNK BOND FUND'S FIVEYEAR
PERFORMANCE THROUGH NOVEMBER 30 WILL IMPROVE TO 94 ANNUALLY FROM 93
SIMPLY BY ELIMINATING ALLIANCE HIGH YIELD FROM THE RECORD

IT JUST GOES TO SHOW HOW THE GOOD OLD DAYS KEEP GETTING BETTER 9301070111
930107 US AGENCY ASSIGNS 57 DUMPING MARGINS ON BRAZIL STEEL ITEMS

CANTON OHIO TIMKEN CO AND REPUBLIC ENGINEERED STEELS INC SAID THE US
DEPARTMENT OF COMMERCE HAS ASSIGNED PRELIMINARY DUMPING MARGINS OF 57 FOR
FINISHED HOTROLLED BAR STEEL PRODUCTS AND 1967 FOR SEMIFINISHED ONES
IMPORTED FROM BRAZIL

THE COMPANIES SAID THE RULING IS A RESPONSE TO A COMPREHENSIVE ANTIDUMPING
PETITION FILED BY THE TWO SPECIALTY STEEL MAKERS AGAINST BRAZIL IN JUNE
1992 IT ISN'T RELATED TO THE LARGER VOLUME OF ANTIDUMPING FILINGS BY MAJOR
US STEEL MAKERS FOR FLATROLLED STEEL PRODUCTS A PRELIMINARY DECISION ON
THOSE CASES IS DUE LATER THIS MONTH

REPUBLIC ENGINEERED STEELS AN EMPLOYEEOWNED COMPANY IS IN MASSILLON
OHIO 9301070110 930107 MARKETING & MEDIA LATEST STAR TREK' SPINOFF
OF SPINOFF STARTS AT WARP SPEED  RATINGS ARE SURPRISINGLY HIGH 3
OTHER SYNDICATED SHOWS WAIT ON THE LAUNCHING PAD  BY ELIZABETH
JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK STAR TREK DEEP SPACE NINE MAY BE GOING WHERE NO SYNDICATED
HOURLONG SERIES HAS GONE BEFORE IN THE RATINGS THAT IS

THE NEW WEEKLY SHOW FROM PARAMOUNT COMMUNICATIONS INC'S TELEVISION UNIT IS
ROLLING OUT IN 190 MARKETS ACROSS THE US THIS WEEK WITH A TWOHOUR PILOT
MOVIE THAT SO FAR IS RACKING UP SURPRISINGLY HIGH RATINGS THE SPINOFF OF
STAR TREK THE NEXT GENERATION HAS BEATEN NEARLY ALL COMPETITION NETWORK
OR OTHERWISE

DEEP SPACE NINE IS THE FIRST OF FOUR NEW SERIES THAT PREMIERE THIS MONTH
IN A PRIMETIME CHALLENGE TO THE THREE MAJOR NETWORKS WHICH HAVE VIRTUALLY
IGNORED THE ACTION GENRE PARAMOUNT'S THE UNTOUCHABLES MAKES ITS DEBUT
NEXT WEEK TIME WARNER INC'S WARNER BROS STUDIO WILL OFFER TIME TRAX AND
KUNG FU THE LEGEND CONTINUES STARTING JAN 20

IF THE RATINGS HOLD UP ACROSS THE COUNTRY THE DEEP SPACE NINE PREMIERE
MAY BE HIGHERRATED THAN ANY NETWORK SHOW THIS WEEK

THE SCIENCEFICTION DRAMA GRABBED TOP RATINGS IN A DOZEN OF THE 17 MAJOR
MARKETS THAT ROLLED IT OUT SUNDAY THROUGH TUESDAY THE HIGHEST RATINGS WERE
IN SEATTLE WHERE THE SHOW DREW AN IMPRESSIVE 258 OF LOCAL TV HOMES AND A
36 SHARE OF THE AUDIENCE

IN LOS ANGELES THE NATION'S SECONDLARGEST MARKET DEEP SPACE NINE DREW A
STRONG 203 OF TV HOUSEHOLDS AND A 29 SHARE OF THE AUDIENCE FROM 8 TO 10
PM TUESDAY BEATING ALL COMPETITION

DEEP SPACE NINE'S PREDECESSOR PIONEERED THE MARKET FOR PRIMETIME
SYNDICATED DRAMAS IN 1987 TAPPING INTO THE LOYAL FANS OF THE 1960S STAR
TREK TV SERIES PARAMOUNT TURNED DOWN NETWORK OFFERS TO AIR THE NEW STAR
TREK AND THE UNTOUCHABLES INSTEAD OFFERING THE SHOWS DIRECTLY TO LOCAL
STATIONS IN SYNDICATION WHERE IT MAY REAP FAR MORE PROFITS BECAUSE OF ITS
UNUSUAL FINANCING ARRANGEMENT

DEEP SPACE NINE AND THE UNTOUCHABLES COST AN ESTIMATED 2 MILLION PER
EPISODE ALMOST DOUBLE WHAT MOST NETWORK HOURS COST BUT PARAMOUNT COVERS
MORE THAN HALF THE EXPENSES BY SELLING ABOUT SEVEN MINUTES OF BARTER
ADVERTISING TIME IN EACH EPISODE THE LAVISHLY PRODUCED SHOWS ALSO SELL WELL
IN FOREIGN MARKETS AND ALMOST EVERY STATION THAT BOUGHT THE TWO SERIES FOR
WEEKLY AIRING HAS ALREADY COMMITTED TO BUY THE RERUNS IF ENOUGH EPISODES ARE
ACCUMULATED TO AIR DAILY ABOUT THREE YEARS FROM NOW

IF THE SHOWS WORK PARAMOUNT MAY DO MORE AND IS EVEN LOOKING AT THE COMEDY
GENRE THAT THE NETWORKS SEEM TO HAVE LOCKED UP SAID KERRY MCCLUGGAGE
CHAIRMAN OF PARAMOUNT TELEVISION GROUP THE AUDIENCE HAS LEARNED OVER TIME
THAT PROGRAMMING CAN COME FROM OTHER THAN THE BIG THREE OR 3 1/2 OR FOUR
NETWORKS HE SAID 9301070109 930107 BUSINESS BRIEF SHOWBOAT INC 
EXPANSION OF CASINOHOTEL IS PLANNED FOR NEW JERSEY

SHOWBOAT INC LAS VEGAS SAID IT PLANS A 535 MILLION EXPANSION AND
RENOVATION OF ITS SHOWBOAT CASINOHOTEL IN ATLANTIC CITY NJ

THE PLANS WHICH ARE SUBJECT TO APPROVAL BY THE NEW JERSEY CASINO CONTROL
COMMISSION INCLUDE CONSTRUCTION OF A 200ROOM HOTEL TOWER AND ABOUT 22000
SQUARE FEET OF NEW GAMBLING AREAS

RENOVATION OF THE EXISTING FACILITIES IS EXPECTED TO BE COMPLETED BY JUNE

SHOWBOAT SAID HOWEVER THAT CONSTRUCTION OF THE HOTEL TOWER REQUIRES A
SUCCESSFUL BID FOR AN ADJACENT PROPERTY CURRENTLY OWNED BY THE ATLANTIC CITY
HOUSING AUTHORITY ASSUMING PURCHASE OF THE PROPERTY COMPLETION OF THE
HOTEL TOWER AND NEW CASINO AREA IS EXPECTED BY THE SUMMER OF 1995 SHOWBOAT
SAID

THE COMPANY'S ATLANTIC CITY CASINOHOTEL CURRENTLY HAS ABOUT 60000 SQUARE
FEET OF GAMBLING SPACE AND 516 HOTEL ROOMS 9301070108 930107 POLITICS &
POLICY PENTAGON SURVEY CHALLENGES CLINTON ON CUTBACK'S EFFECT 
 BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON BREAKING WITH PRESIDENTELECT CLINTON'S VIEWS A PENTAGON
STUDY CONCLUDES THAT THE ECONOMIC EFFECTS OF CUTS IN DEFENSE SPENDING ARE
QUITE MANAGEABLE

IN A REPORT RELEASED YESTERDAY THE PENTAGON'S DEFENSE CONVERSION COMMISSION
CONTENDS THAT THE CHANGEOVER DOESN'T POSE ANY EXTRAORDINARY PROBLEMS FOR
THE US MOREOVER THE STUDY SAID MEASURED BY OUTLAYS OR AS A SHARE OF
GROSS DOMESTIC PRODUCT THE CURRENT DEFENSE DRAWDOWN IS SMALLER THAN THE
DRAWDOWNS THAT FOLLOWED WORLD WAR II KOREA OR VIETNAM

THE COMMISSION'S CONCLUSION CONTRASTS SHARPLY WITH MR CLINTON'S DURING HIS
CAMPAIGN HE EMPHASIZED THE NEED FOR MASSIVE DEFENSE CONVERSION PROGRAMS
INDEED THE COMMISSION EXPLICITLY DISAGREED WITH HIS CAMPAIGN PLEDGE TO
SPEND ALL THE MONEY GAINED FROM DEFENSE BUDGET CUTS ON INFRASTRUCTURE
PROJECTS THAT WOULD HELP CONVERT THE DEFENSE INDUSTRY AND ITS WORKERS TO A
PEACETIME ECONOMY

THE SHORTTERM IMPACT OF THE DRAWDOWN ON THE NATIONAL ECONOMY DOESN'T IN
ITSELF SUPPORT THE CALLS FOR AN OFFSETTING STIMULUS FROM NEW LARGE FEDERAL
PROGRAMS SUCH AS ENVIRONMENTAL CLEANUP EFFORTS NEW HIGHSPEED TRAIN
SYSTEMS OR OTHER PHYSICAL INFRASTRUCTURE THE COMMISSION WROTE

CONGRESS CREATED THE CONVERSION COMMISSION AND ITS MEMBERS WERE SELECTED BY
DEFENSE SECRETARY DICK CHENEY

THE COMMISSION HOWEVER RECOMMENDED SOME ADJUSTMENTS IN HOW THE GOVERNMENT
HANDLES DEFENSE SPENDING AND CONVERSION IT SAID THAT GOVERNMENT DISLOCATION
ASSISTANCE PROGRAMS ARE FRAGMENTED AMONG OTHER THINGS AND SHOULD BE
BETTER COORDINATED

IN ADDITION THE COMMISSION SUGGESTED THAT THE DEFENSE DEPARTMENT CHANGE THE
WAY IT DOES BUSINESS IN ORDER TO LOWER BARRIERS BETWEEN DEFENSE COMPANIES
AND NONDEFENSE FIRMS THE PENTAGON FOR EXAMPLE SHOULD DROP ITS RIGID
MILITARY SPECIFICATIONS FOR PRODUCTS AND IN MOST CASES SIMPLY USE
COMMERCIAL SPECIFICATIONS THE COMMISSION SAID 9301070107 930107
CORRECTIONS & AMPLIFICATIONS

PHYLLIS PACE FISHER WAS BARRED FOR FOUR WEEKS BY THE NEW YORK STOCK EXCHANGE
FOR FAILING TO RESPOND TO INQUIRIES BY THE BIG BOARD HOWEVER A DEC 28
ARTICLE ABOUT A NUMBER OF BIG BOARD DISCIPLINARY ACTIONS DIDN'T NOTE THAT
SHE ULTIMATELY TESTIFIED AS REQUESTED

GARY M COOK WHO ANNOUNCED IN OCTOBER HIS RESIGNATION AS PRESIDENT AND
CHIEF EXECUTIVE OFFICER OF CAREERCOM CORP SAID AT THE TIME THAT THE
COMPANY HAD TAKEN THE OPERATIONAL STEPS NECESSARY TO ACHIEVE BUSINESS
SUCCESS A DEC 17 ARTICLE THAT DISCUSSED CAREERCOM'S SUBSEQUENT FILING FOR
CHAPTER 11 BANKRUPTCYLAW PROTECTION LEFT THE ERRONEOUS IMPRESSION THAT MR
COOK HAD SAID THE MEASURES TAKEN BY THE COMPANY DURING HIS TENURE ALSO WOULD
RESOLVE ITS DEBT PROBLEMS 9301070106 930107 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

TELECOMMUNICATIONS INC 105 BILLION ISSUE OF NOTES AND DEBENTURES WAS
PRICED IN TWO PARTS A 550 MILLION ISSUE OF 825 SENIOR NOTES DUE JAN
15 2003 WAS PRICED AT 99932 TO YIELD 826 PRICING OF THE NONCALLABLE
NOTE ISSUE WHICH WAS INCREASED FROM AN ORIGINAL SIZE OF 200 MILLION WAS
AT A YIELD SPREAD OF 165 BASIS POINTS OVER THE 10YEAR TREASURY NOTE A 500
MILLION ISSUE OF 925 SENIOR DEBENTURES DUE JAN 15 2023 WAS PRICED AT
99597 TO YIELD 929 A 195 BASIS POINT SPREAD OVER THE 30YEAR TREASURY
BOND THE ISSUE NONCALLABLE FOR 10 YEARS ALSO WAS INCREASED FROM AN
ORIGINAL SIZE OF 200 MILLION RATED BAA3 BY MOODY'S INVESTORS SERVICE INC
AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP

FORD MOTOR CREDIT CO 500 MILLION ISSUE OF 750 NOTES DUE JAN 15
2003 WAS PRICED AT 99826 TO YIELD 7525 THE NONCALLABLE NOTES WERE
PRICED AT A SPREAD OF 92 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED
SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY SALOMON BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF
FORD MOTOR CO

MCI COMMUNICATIONS CORP 400 MILLION ISSUE OF NOTES AND DEBENTURES WAS
PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO A 200
MILLION ISSUE OF SEVENYEAR NONCALLABLE 7125 NOTES WAS PRICED AT PAR TO
YIELD AN 80 BASIS POINT SPREAD OVER THE SEVENYEAR TREASURY NOTE A 200
MILLION ISSUE OF 30YEAR 825 DEBENTURES NONCALLABLE FOR TEN YEARS WAS
PRICED AT 9923 TO YIELD 832 A 98 BASIS POINT SPREAD OVER THE 30YEAR
TREASURY THE ISSUE WAS RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P

NATIONSBANK CORP 400 MILLION ISSUE OF 6625 SENIOR NOTES DUE JAN 15
1998 WAS PRICED AT 99650 TO YIELD 6708 THE NONCALLABLE ISSUE WAS PRICED
AT A SPREAD OF 78 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SIZE
OF THE OFFERING WAS INCREASED FROM A PREVIOUSLY PLANNED 350 MILLION RATED
SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH
UNDERWRITERS LED BY MERRILL LYNCH & CO

DU PONT CO 300 MILLION ISSUE OF 795 DEBENTURES DUE JAN 15 2023
WAS PRICED AT 99772 TO YIELD 797 THE DEBENTURES NONCALLABLE FOR 10
YEARS WERE PRICED AT A SPREAD OF 63 BASIS POINTS ABOVE THE TREASURY 30YEAR
BOND RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE
SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP

PHILLIPS PETROLEUM CO 250 MILLION ISSUE OF 849 DEBENTURES DUE JAN
1 2023 WAS PRICED AT PAR TO YIELD 849 THE YIELD SPREAD ON THE
DEBENTURES WHICH ARE NONCALLABLE FOR 10 YEARS IS 115 PERCENTAGE POINTS
ABOVE THE 30YEAR TREASURY BOND RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO

FEDERAL HOME LOAN BANKS 200 MILLION ISSUE OF NOTES DUE JAN 12 1996
WAS PRICED AT PAR TO YIELD 514 INITIALLY THE NOTES NONCALLABLE FOR ONE
YEAR WILL BE REOFFERED AT VARIOUS PRICES THROUGH DEALERS LED BY GOLDMAN
SACHS & CO

BVPS II FUNDING CORP 1551 MILLION TWOPART ISSUE OF COLLATERALIZED
LEASE BONDS WAS PRICED THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP THE
FIRST PART CONSISTING OF 255 MILLION COLLATERALIZED LEASE BONDS DUE DEC
1 2000 WAS PRICED AT PAR TO YIELD 767 THE BONDS WERE PRICED AT A SPREAD
OF 175 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE BECAUSE OF EARLY
PRINCIPAL PAYMENTS THE BONDS HAVE AN AVERAGE LIFE OF 48081 YEARS THE
SECOND PART CONSISTING OF 1296 MILLION COLLATERALIZED LEASE BONDS DUE
JUNE 1 2017 WAS PRICED AT PAR TO YIELD 868 THE BONDS WERE PRICED AT A
SPREAD OF 135 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND BECAUSE OF EARLY
PRINCIPAL PAYMENTS THE BONDS HAVE AN AVERAGE LIFE OF 171951 YEARS BOTH
PARTS ARE NONCALLABLE AND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P
BVPS II FUNDING CORP IS A UNIT OF OHIO EDISON CO

BEAR STEARNS COS 150 MILLION ISSUE OF NOTES DUE JAN 15 1996 WAS
PRICED AT PAR TO YIELD 5875 PRICING OF THE NONCALLABLE NOTES WAS AT A
SPREAD OF 90 BASIS POINTS OVER THE THREEYEAR TREASURY NOTE RATED
SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO

INTERNATIONAL LEASE FINANCE CORP 150 MILLION ISSUE OF 575 NOTES DUE
JAN 15 1996 WAS PRICED AT 99933 TO YIELD 5774 THE YIELD ON THE
NONCALLABLE NOTES IS AN 80 BASIS POINT SPREAD OVER THE THREEYEAR TREASURY
NOTE RATED A2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD
THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC

FEDERAL HOME LOAN BANKS 1022 MILLION ISSUE OF NOTES DUE JAN 13 1998
WAS PRICED AT PAR TO YIELD 6 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD
OF SIX BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE
OFFERED THROUGH MERRILL LYNCH & CO VARIOUS PRICES THROUGH DEALERS LED BY
GOLDMAN SACHS & CO

BELL TELEPHONE CO OF PENNSYLVANIA 100 MILLION ISSUE OF 77 DEBENTURES
DUE JAN 15 2023 WAS PRICED AT 98767 TO YIELD 7807 THE DEBENTURES
NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE
THE TREASURY 30YEAR BOND RATED DOUBLEA1 BY MOODY'S AND DOUBLEA BY S&P
THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BELL
TELEPHONE PA IS A UNIT OF BELL ATLANTIC CORP

DILLARD DEPARTMENT STORES INC 100 MILLION ISSUE OF 7875 DEBENTURES
DUE JAN 1 2023 WAS PRICED AT 98637 TO YIELD 7995 THE NONCALLABLE
ISSUE WAS PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE THE TREASURY 30YEAR
BOND RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL
BE SOLD THROUGH MORGAN STANLEY & CO

SOUTHERN CALIFORNIA GAS CO THREE MILLION SHARES OF CUMULATIVE PERPETUAL
PREFERRED STOCK WAS PRICED AT 25 EACH WITH A 775 DIVIDEND RATE THE FIRST
PAYMENT OF THE SHARES WHICH ARE NONCALLABLE FOR FIVE YEARS IS APRIL 15
1993 RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE
SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC SOUTHERN CALIFORNIA
GAS IS A UNIT OF PACIFIC ENTERPRISES LOS ANGELES

PROVINCE OF BRITISH COLUMBIA CANADA 500 MILLION ISSUE OF 7 DEBENTURES
DUE JAN 15 2003 WAS PRICED AT 99256 TO YIELD 7105 THE NONCALLABLE
ISSUE WAS PRICED AT A SPREAD OF 48 BASIS POINTS ABOVE THE TREASURY 10YEAR
NOTE RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P THE ISSUE WILL
BE SOLD THROUGH LEHMAN BROTHERS INC

PENNSYLVANIA 375 MILLION SECOND SERIES OF 199293 TAX ANTICIPATION
NOTES OR TANS WERE WON BY FIVE FIRMS THE TANS WHICH ARE DUE JUNE 30
1993 HAVE BEEN RATED MIG1 BY MOODY'S INVESTORS SERVICE INC AND SP1PLUS
BY STANDARD & POOR'S CORP MORGAN STANLEY & CO INC'S 175 MILLION OF 275
NOTES ARE PRICED TO YIELD 205 DONALDSON LUFKIN & JENRETTE SECURITIES
CORP'S 50 MILLION OF 275 TANS ARE PRICED TO YIELD 200 KIDDER PEABODY
& CO INC'S 25 MILLION OF 250 NOTES ARE PRICED TO YIELD 2 FIRST
CHICAGO CAPITAL MARKETS INC'S 25 MILLION OF 25 NOTES ARE PRICED TO YIELD
205 DETAILS ABOUT MELLON BANK'S 100 MILLION OF NOTES WEREN'T AVAILABLE

RIVERSIDE COUNTY CALIF ASSET LEASING CORP 14789 MILLION REFUNDED
LEASEHOLD REVENUE BONDS HAVE BEEN PRICED BY A FIRST BOSTON CORP GROUP THE
TAXABLE ISSUE WILL FUND THE RIVERSIDE HOSPITAL PROJECT YIELDS RANGED FROM
550 IN 1999 TO 665 IN 2014 THE 1355 MILLION SERIES A BONDS WERE RATED
APLUS BY S&P SINGLEA BY MOODY'S AND APLUS BY FITCH INVESTORS SERVICE
INC THE 1238 MILLION SERIES B BONDS HOLD A LETTER OF CREDIT FROM SWISS
BANK AND HAS BEEN RATED DOUBLEA1 AND TRIPLEA BY S&P AND MOODY'S
RESPECTIVELY

MISSISSIPPI 12791 MILLION SERIES 1992B GENERAL OBLIGATION REFUNDING
BONDS HAVE BEEN PRICED BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE
FROM 250 IN 1993 TO 600 IN 200911 MOODY'S IS EXPECTED TO RATE THE
ISSUE DOUBLEA AND S&P IS EXPECTED TO ASSIGN A DOUBLEAMINUS RATING

AUSTIN INDEPENDENT SCHOOL DISTRICT OF TRAVIS COUNTY TEXAS 1114 MILLION
SERIES 1992 UNLIMITEDTAX REFUNDING BONDS HAVE BEEN PRICED BY A PAINEWEBBER
INC GROUP YIELDS RANGE FROM 325 IN 1994 TO 590 FOR ZEROCOUPON BONDS
DUE IN 2003 THE OFFERING HAS BEEN RATED TRIPLEA BY BOTH MOODY'S AND S&P
THE ZEROCOUPON BONDS HAVE BEEN PRICED TO YIELD 580 AND 590 AT THEIR
RESPECTIVE MATURITIES IN 2002 AND 2003

FLORIDA POWER & LIGHT CO 250 MILLION ISSUE OF 7875 FIRST MORTGAGE
BONDS DUE JAN 1 2013 WAS PRICED AT 9886 TO YIELD 799 THE BONDS
NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 65 BASIS POINTS
ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY
S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS
INC FLORIDA P&L IS A UNIT OF FPL GROUP

ELECTRICITE DE FRANCE FRANCE 200 MILLION CANADIAN DOLLARS OF 775
EUROBONDS DUE FEB 9 1998 AT A REOFFERED PRICE OF 9953 VIA SWISS BANK
CORP YIELD 787 ANNUALLY A SPREAD OF 45 BASIS POINTS ABOVE THE COMPARABLE
CANADIAN GOVERNMENT ISSUE FEES 1875

GENERAL ELECTRIC CAPITAL CORP US 100 MILLION CANADIAN DOLLARS OF 8
EUROBONDS DUE JAN 27 1998 AT AN ISSUE PRICE OF 101625 VIA UBS PHLLIPS &
DREW LTD REOFFERED AT PAR TO YIELD 8 ANNUALLY A SPREAD OF 53 BASIS POINTS
ABOVE THE COMPARABLE GOVERNMENT ISSUE FEES 1875

BANQUE NATIONALE DE PARIS FRANCE 100 MILLION CANADIAN DOLLARS OF 8375
EUROBONDS DUE FEB 18 2003 AT AN ISSUE PRICE OF 100675 VIA HAMBROS BANK
LTD REOFFERED AT 99025 TO YIELD 852 ANNUALLY A SPREAD OF 48 BASIS
POINTS ABOVE THE COMPARABLE GOVERNMENT ISSUE FEES 2

NORDIC INVESTMENT BANK AGENCY 100 MILLION OF SENIOR COLLARED FLOATING
RATE NOTES DUE FEB 4 2003 AT AN ISSUE AND REOFFERED PRICE OF PAR VIA
SALOMON BROTHERS INTERNATIONAL INTEREST RATE WILL FLOAT AT A MARGIN OF 25
POINT BELOW THE SIXMONTH LONDON INTERBANK OFFERED RATE THERE IS A MINIMUM
COUPON OF 525 AND A MAXIMUM COUPON OF 8125 FEES 050

SOCIETE NATIONALE DE CHEMINS DE FER FRANCE 300 MILLION SWISS FRANCS OF
525 PUBLICLY LISTED BONDS DUE FEB 24 2005 PRICED AT 10150 VIA SWISS
BANK CORPORATION FEES 250

LANDESBANK OF HESSENTHURINGEN GERMANY 100 MILLION SWISS FRANCS OF
550 PUBLICLY LISTED SUBORDINATED BONDS DUE FEB 17 2003 PRICED AT
101625 VIA SWISS BANK CORP FEES 2625

BANK NEDERLANDSE GEMEENTEN THE NETHERLANDS 350 MILLION MARKS OF 7
EUROBONDS DUE FEB 3 2000 AT AN ISSUE PRICE OF 10180 VIA SWISS BANK CORP
GMBH REOFFERED AT 9985 GIVING A SPREAD OF 10 BASIS POINTS ABOVE THE
COMPARABLE GOVERNMENT ISSUE FEES 225 9301070105 930107 LEISURE & ARTS
 TOP 10 PRIMETIME PROGRAMS

COMPILED BY NIELSEN MEDIA RESEARCH COPYRIGHT 1993 9301070104 930107
ECONOMY BUDGET OFFICE USING UNLIKELY SCRIPT ESTIMATES TAX BITE FOR
YETTOBE BORN  BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET
JOURNAL

WASHINGTON YOU WILL PAY MORE OF YOUR LIFETIME INCOME IN TAXES THAN YOUR
PARENTS AND UNLESS THERE IS A MAJOR CHANGE IN GOVERNMENT POLICY YOUR
DESCENDENTS YET TO BE BORN WILL PAY NEARLY THREEFOURTHS OF THEIR INCOMES IN
TAXES THE WHITE HOUSE BUDGET OFFICE SAYS

FOR THE FIRST TIME THE GOVERNMENT HAS COME UP WITH ROUGH ESTIMATES OF WHAT
DIFFERENT GENERATIONS PAY IN FEDERAL STATE AND LOCAL TAXES OVER THEIR
LIFETIMES THE BOTTOM LINE ACCORDING TO AN APPENDIX IN THE FINAL BUSH
BUDGET RELEASED YESTERDAY IS THAT TAX RATES PAID BY FUTURE GENERATIONS
WILL BE SUBSTANTIALLY HIGHER THAN THOSE PAID BY THE BABY BOOM AND OTHER
CURRENT GENERATIONS UNLESS POLICY ACTIONS ARE TAKEN NOW

THE PROJECTION WHICH RELIES ON AN APPROACH THAT ISN'T WIDELY ACCEPTED
MAKES THE UNLIKELY ASSUMPTIONS THAT CURRENT SPENDING TRENDS CONTINUE THAT
PRESIDENTELECT CLINTON DOES NOTHING TO REDUCE THE DEFICIT AND THAT FUTURE
GENERATIONS ACTUALLY PAY OFF THE GOVERNMENT'S DEBT

STILL THE ANALYSIS MAKES WHAT BUDGET DIRECTOR RICHARD DARMAN HAS DESCRIBED
AS THE MORAL ARGUMENT FOR REDUCING THE FEDERAL DEFICIT CURRENT GENERATIONS
ARE RUNNING UP A BILL THAT FUTURE GENERATIONS WILL HAVE TO PAY IT IS
ANOTHER WAY OF ARGUING THAT THE GOVERNMENT NEEDS TO RAISE TAXES ON CURRENT
GENERATIONS OR RESTRAIN SPENDING PARTICULARLY ON HEALTH

ALTHOUGH HE ISN'T ENAMORED WITH THIS METHODOLOGY MR DARMAN SAID
YESTERDAY AT A NEWS CONFERENCE THE BUDGETARY SYSTEM WE HAVE IS STRUCTURED
TO PAY TOO LITTLE ATTENTION TO THE FUTURE THAT IS A VERY VERY BIGTIME
PROBLEM

USING A RELATIVELY NEW CONCEPT KNOWN AS GENERATIONAL ACCOUNTING AN
ALTERNATIVE TO ANNUAL SNAPSHOTS OF THE FEDERAL DEFICIT THE BUDGET OFFICE
TAKES ACCOUNT OF TAXES PAID AND BENEFITS RECEIVED SUCH AS SOCIAL SECURITY
AND MEDICARE BY EACH GENERATION IT THEN SUMS THIS UP IN A SINGLE NUMBER

THIS AVERAGE TAX RATE TOTAL TAXES PAID MINUS GOVERNMENT BENEFITS RECEIVED
HAS RISEN SIGNIFICANTLY DURING THE 20TH CENTURY THE BUDGET OFFICE
ESTIMATES IT INCREASED FROM ABOUT 22 OF INCOME FOR THE GENERATION BORN IN
1900 TO ABOUT 26 FOR THOSE BORN IN 1920 WHO ARE TODAY'S ELDERLY BABY
BOOMERS WILL PAY MORE THE AVERAGE TAX RATE FOR AMERICANS BORN IN 1950 HAS
RISEN TO ABOUT 31 AND FOR THOSE BORN SINCE 1970 IT'S APPROACHING 34

BUT THE REAL WHOPPER IS YET TO COME FUTURE GENERATIONSARE ESTIMATED TO
MAKE A 111 LARGER NET PAYMENT TO THE GOVERNMENT ON AVERAGE THAN THOSE
BORN IN 1991 THE BUDGET SAYS

THE AVERAGE TAX RATE FOR ALL THOSE GENERATIONSYETTOCOME WILL BE ABOUT 71
OF INCOME UNLESS SOMETHING CHANGES THE BUDGET OFFICE SAYS THE ANALYSIS
ALSO ILLUSTRATES THE EFFECTS OF TWO POTENTIAL POLICIES A STRICT CAP ON THE
GROWTH OF SPENDING ON GOVERNMENT BENEFITS AND A STIFF TAX INCREASE BOTH
WOULD RAISE THE TAX RATES ON THOSE NOW ALIVE AND LOWER THE TAX RATES ON
THOSE YET TO COME BUT COMPARED WITH A SPENDING CAP THE TAX INCREASE WOULD
FALL MUCH MORE HEAVILY ON TODAY'S CHILDREN THAN ON THEIR PARENTS WHO WOULD
ENJOY MUCH THE SAME RETIREMENT AND HEALTH BENEFITS AS TODAY'S ELDERLY

WE'RE ON A TRAJECTORY IN WHICH WE'VE GOT EXPLODING HEALTHCARE COSTS
INTERACTING WITH AN AGING POPULATION SAYS LAURENCE KOTLIKOFF A BOSTON
UNIVERSITY ECONOMIST WHO HELPED THE BUDGET OFFICE WITH THE ESTIMATES THE
LONGER WE WAIT HE SAYS THE BIGGER THE PROBLEM BECOMES

TALLY UP WHAT THE GOVERNMENT HAS BEEN PURCHASING THAT'S A BILL SOME
GENERATION HAS TO PAY SAYS MR KOTLIKOFF WHO WAS AMONG THE INVENTORS OF
GENERATIONAL ACCOUNTING AND THEN THERE'S THE BILL FOR PAYING OFF THE
GOVERNMENT'S DEBT MINUS ITS ASSETS THOSE TWO THINGS HAVE TO BE PAID BY THE
PRIVATE SECTOR EITHER THE PRIVATE SECTOR THAT'S CURRENTLY ALIVE OR THE
PRIVATE SECTOR THAT'S ALIVE IN THE FUTURE IF THOSE CURRENTLY ALIVE DON'T
PAY THEN THOSE YET TO BE BORN WILL HAVE TO

THE GENERATIONAL ACCOUNTING APPROACH ISN'T WIDELY ACCEPTED EITHER BY
ECONOMISTS OR POLICY MAKERS PARTLY BECAUSE ACCURATE ESTIMATES ARE SO
DIFFICULT TO MAKE BUT ADVOCATES SAY IT AVOIDS MANY OF THE SHORTCOMINGS OF
CURRENT DEFICIT MEASURES

ONE ADVANTAGE IS THAT IT TAKES A LONGERRUN VIEW THAT THE ONEYEAR OR
FIVEYEAR ESTIMATES USED TODAY YOU DON'T GET ANY MILEAGE OUT OF TIMING
GIMMICKS SAYS ALAN AUERBACH A UNIVERSITY OF PENNSYLVANIA ECONOMIST WHO
HAS WORKED WITH MR KOTLIKOFF

GENERATIONAL ACCOUNTING ALSO REVEALS PRECISELY WHO BEARS THE BURDEN OR GETS
THE BENEFIT OF PARTICULAR POLICY PROPOSALS CURRENT GOVERNMENT ACCOUNTING
DOESN'T TAKE TAXING SOCIAL SECURITY BENEFITS MR AUERBACH SAYS WE KNOW
WE'RE HITTING THE ELDERLY BUT THAT DOESN'T SHOW UP ANY DIFFERENTLY IN
BUDGET TERMS THAN A TAX ON TUITION BENEFITS BUT WE KNOW THEY'RE DIFFERENT
9301070103 930107 BUSINESS BRIEF MARSH & MCLENNAN COS ACCOUNTING
ADJUSTMENTS CAUSE RETROACTIVE CHARGE

MARSH & MCLENNAN COS NEW YORK SAID IT WILL TAKE A CHARGE OF 40 MILLION
RETROACTIVE TO THE 1992 FIRST QUARTER TO REFLECT THE ADOPTION OF TWO
ACCOUNTING STANDARDS ON RETIREE BENEFIT COSTS AND DEFERRED TAXES

THE INSURANCE BROKERAGE AND PROFESSIONAL SERVICES COMPANY WILL TAKE A 45
MILLION CHARGE FOR FINANCIAL ACCOUNTING STANDARDS BOARD RULE 106 WHICH
REQUIRES EMPLOYERS STARTING THIS YEAR TO FULLY ACCRUE THE PROJECTED COST OF
POSTRETIREMENT BENEFITS TO EMPLOYEES PREVIOUSLY THOSE COSTS WERE RECORDED
ON A CASH BASIS AT THE TIME THE BENEFITS WERE PAID THE COMPANY SAID THE
CHARGE FOR ITS CUMULATIVE LIABILITY OF PRIOR YEARS IS IN LINE WITH ITS
ESTIMATE AS DISCLOSED IN THE 1991 ANNUAL REPORT

MARSH & MCLENNAN ALSO SAID IT WILL TAKE AN OFFSETTING GAIN OF ABOUT 5
MILLION FOR FASB RULE 109 WHICH REQUIRES COMPANIES TO DETERMINE THEIR
DEFERRED INCOME TAX BALANCES USING CURRENT TAX RATES

THE COMPANY SAID THE MOVE WILL REQUIRE A RESTATEMENT OF FINANCIAL RESULTS
FOR THE FIRST THREE QUARTERS OF LAST YEAR 9301070102 930107 THEY'VE GOT
THE YEAR A BIT WRONG BUT EVEN SO IT'S A TIMELY CONCEPT  BY DAVE
KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL

WHILE MOST OF US ARE STILL WRITING 1992 ON CHECKS SOME PEOPLE ARE YEARS
AHEAD

WE FIGURED WE'D BETTER GET AN EARLY START SO THAT WE COULD DEVELOP OUR NAME
RECOGNITION SAYS LAURIE RICH COFOUNDER OF GIFT TO THE FUTURE2000 INC
MS RICH'S RHINEBECK NY COMPANY IS GRABBING A SEAT NOW FOR THE TURN OF
THE CENTURY WHICH PURISTS OF COURSE WILL BE QUICK TO NOTE WON'T BE UNTIL
2001 HOPING TO TURN FASCINATION WITH DATES INTO A PROFIT

THE PRODUCT A HEFTY DOITYOURSELF MILLENNIUM YEARBOOK CUSTOMERS WHO THINK
THEY HAVE SOMETHING SIGNIFICANT TO SAY CAN PLUNK DOWN 1495 TO PLACE A
100WORD STATEMENT INTO THE BOOK LONGERWINDED INDIVIDUALS WILL HAVE TO PAY
20 CENTS A WORD FOR EXTRA SPACE

IN 2000 THE COMPENDIUM OF STATEMENTS WILL BE PACKAGED INTO SEVERAL
HARDBOUND VOLUMES AND DONATED TO LARGE LIBRARIES AND OF COURSE SOLD
INDIVIDUAL CONTRIBUTORS WILL HAVE TO PAY TO GET THE ENTIRE COLLECTION BUT
THEIR FEE DOES BUY THEM A PRINTED COPY OF THEIR WORDS

SOME LIBRARIANS ARE A BIT WARY OF THE PROJECT IT DOESN'T SEEM LIKE THIS IS
WHAT THE WORLD NEEDS SAYS SHARON BONK ASSISTANT DIRECTOR OF LIBRARIES AT
THE STATE UNIVERSITY OF NEW YORKALBANY PEOPLE CAN GET A BIT POMPOUS WHEN
COMPILING PERSONAL STATEMENTS

MS RICH HOWEVER EXPECTS ENORMOUS INTEREST AND A WORK FORCE OF MORE THAN
100 FULLTIME EMPLOYEES WHEN THE NEW CENTURY APPROACHES CURRENTLY HOWEVER
THE COMPANY HAS ONLY THREE EMPLOYEES TWO COFOUNDERS AND AN OFFICE
MANAGER

STILL GIFT TO THE FUTURE2000 HAS PIQUED SOME INTEREST MORE THAN 1000
PEOPLE HAVE BOUGHT SLOTS IN THE YEARBOOK WHICH IS BEING PROMOTED ALONG WITH
THE COMPANY'S RELATED BUSINESS WHICH INCLUDES THE PRINTING OF FAMILY
HISTORIES

ONE BUYER BOOKER T BROOKS AN ARDENT GENEALOGIST IS INTENT ON
IMMORTALIZING HIS FAMILY IN THE YEARBOOK I HAVE TRACED MY FAMILY BACK TO
THE EVICTION OF THE JEWS FROM SPAIN IN 1492 SAYS MR BROOKS A 68YEAROLD
WASHINGTONIAN AND I PLAN TO GET THE WHOLE FAMILY HISTORY INTO THE
YEARBOOK IT MAY TAKE SOME TIME AND MONEY BUT I'M RETIRED AND THIS SURE
BEATS HANGING AROUND BARS

OTHERS ARE LESS INTENSE ABOUT WHAT TO INCLUDE IN THE YEARBOOK WELL I'M
NOT SURE WHAT I'LL SAY IN THERE SAYS RICHARD BOHANNON A 75YEAROLD
RETIRED OIL WORKER IN KANSAS CITY MO I'M MORE WORRIED ABOUT JUST MAKING
IT THAT FAR 9301070101 930107 REVIEW & OUTLOOK EDITORIAL THE
ELECTRONIC DIALOGUE' CONSPIRACY

AS THE BUSH CROWD LIMPS TOWARD THE EXITS WASHINGTON'S BUREAUCRATS ARE BUSY
ADVERTISING THEIR WARES TO THE INCOMING CLINTONITES THUS THE JUSTICE
DEPARTMENT'S CHRISTMAS PRESENT TO THE AIRLINES WAS AN IMAGINATIVE ANTITRUST
COMPLAINT THAT ACCUSES VIRTUALLY THE ENTIRE INDUSTRY OF CONSPIRING
ELECTRONICALLY TO FIX TICKET PRICES OF COURSE THE AIRLINES HAVE LOST 6
BILLION OVER THE PAST TWO YEARS SO THE FLYING PUBLIC CAN HARDLY BE FEELING
BILKED BUT JUSTICE'S LAWYERS SEE A CHANCE TO MAKE SEXY NEW LAW

THE NUB IS THEIR JOINTLY OWNED DATABASE AIRLINE TARIFF PUBLISHING THROUGH
WHICH THE CARRIERS DISSEMINATE AN AVERAGE OF 168000 NEW FARES A DAY TO
TRAVEL AGENTS NOW IT OFTEN HAPPENS THAT ONE CARRIER MAY TRY TO ENTICE ITS
FELLOWS TO RAISE TICKET PRICES IT DOES THIS BY PUTTING HIGHER FARES INTO
THE DATABASE AND SETTING THEM TO TAKE EFFECT ONLY AT SOME FUTURE DATE THE
FARES WILL STICK ONLY IF OTHER CARRIERS FOLLOW SUIT

THE BOYS AND GIRLS AT JUSTICE ARE CERTAINLY RIGHT TO SMELL AN ELECTRONIC
DIALOGUE HERE NO DOUBT THE CARRIERS WOULD LIKE TO INCREASE FARES AND
ELIMINATE DISCOUNTS IT'S CONCEIVABLE THAT WITH ELECTRONIC WINKS AND NODS
THEY CONDUCTED COMPLEX NEGOTIATIONS TOWARD THIS END IN SOME INSTANCES

BUT DID THIS ACTUALLY RESULT IN HIGHER FARES IT WAS A SEPTEMBER 1989 HIKE
BY AMERICAN AIRLINES SUBSEQUENTLY MATCHED BY THE REST OF THE INDUSTRY THAT
SEEMS TO HAVE PROVOKED JUSTICE BUT IT'S NOT WICKED FOR AIR FARES SOMETIMES
TO GO UP RATHER THAN DOWN OR TO DO SO IN LOCKSTEP AIRPLANE SEATS ARE A
COMMODITY AND A HIGHLY PERISHABLE ONE NOBODY CHARGES COLLUSION BECAUSE TWO
FARMERS GET THE SAME PRICE FOR THEIR CORN TICKET PRICES REMAIN LOW BY
HISTORICAL STANDARDS AND DOES ANYBODY THINK THE CARRIERS ARE GETTING RICH

NOR IS SIGNALING CUSTOMERS AND COMPETITORS ABOUT FUTURE PRICE CHANGES AN
IMMORAL ACT ON THE CONTRARY IT WAS BLESSED BY THE SUPREME COURT IN THE
1937 SUGAR INSTITUTE DECISION THE GOVERNMENT DOESN'T SUE WHEN FORD
ANNOUNCES WHAT THE STICKER PRICE ON NEXT YEAR'S TAURUS WILL BE EVEN THOUGH
EVERYBODY KNOWS THE PRICE MAY CHANGE DEPENDING ON WHAT GM TOYOTA AND THE
REST DO WHAT'S DIFFERENT ABOUT THE AIRLINES APPARENTLY ONLY THE TECHNOLOGY
THAT LETS THEM FINETUNE THOUSANDS OF FARES ON A DAILY BASIS THIS MAY
UNNERVE THE TRUSTBUSTERS BUT IT'S ONE OF THE BRILLIANT POSTDEREGULATION
INNOVATIONS THAT BROUGHT AFFORDABLE AIR TRAVEL TO THE MASSES IN DOING SO
US CARRIERS HAVE JUMPED A CONCEPTUAL LIGHTYEAR AHEAD OF THEIR FOREIGN
COMPETITORS

OF THE EIGHT DEFENDANTS NAMED IN THE JUSTICE DEPARTMENT COMPLAINT UNITED
AND USAIR SURRENDERED ON THE SPOT SIGNING A CONSENT DECREE THAT PREVENTS
THEM FROM TALKING ABOUT FUTURE FARE CHANGES EVEN IN PRESS RELEASES NO DOUBT
THIS SEEMED PREFERABLE TO AN ETERNITY IN LITIGATION HELL BUT IT MEANS THEY
WON'T BE ABLE TO MANAGE THEIR INVENTORIES OF SEATS ON FUTURE FLIGHTS AS
EFFICIENTLY AND CONSUMERS WILL HAVE LESS INFORMATION

NATURALLY WORD OF JUSTICE'S SNOOPING SPURRED THE CLASSACTION LAWYERS INTO
COURT DELTA USAIR AMERICAN UNITED NORTHWEST AND TWA HAVE ALREADY
COUGHED UP GOAWAY MONEY SOME OF WHICH MAY TRICKLE DOWN TO PASSENGERS IN
THE FORM OF DISCOUNT COUPONS NONE ADMITTED TO DOING ANYTHING WRONG AND
DELTA SAID IT SETTLED ONLY TO SAVE TIME AND LEGAL EXPENSES

IN ANOTHER SPLASHY OUTPOURING OF POLICY INVESTIGATORS AT THE FEDERAL
TRADE COMMISSION ARE SWARMING ALL OVER MICROSOFT LAST MONTH THEY URGED THE
COMMISSION TO TAKE THE SOFTWARE POWERHOUSE TO COURT

MICROSOFT SELLS THE BASIC OPERATING SOFTWARE USED IN MOST PCS IN WHAT MAY
BE ONLY AN OPENING SALVO THE FTC WANTS TO OUTLAW CERTAIN PRACTICES BY WHICH
THE COMPANY TRIES TO REMAIN DOMINANT AMONG THESE IS GIVING A BREAK TO PC
MAKERS WHO USE MSDOS ACROSS THEIR WHOLE LINE OF PCS RATHER THAN SELLING
SOME MACHINES WITH RIVAL OPERATING SYSTEMS

THAT MICROSOFT IS A 900POUND GORILLA IS NOT TO BE DOUBTED IT GOT THAT WAY
BY GIVING AN ANARCHIC INDUSTRY A STANDARD WHEN IT NEEDED ONE DOES THAT MEAN
CUSTOMERS AND COMPETITORS NOW MUST BE PROTECTED FROM MICROSOFT IN THE
PROTEAN FASTEVOLVING BUSINESS OF INFORMATION TECHNOLOGY MARKET POWER IS A
WILL O' THE WISP UNCLE SAM'S LAWYERS SPENT MOST OF THE 1970S TRYING TO
BREAK UP IBM THEIR CASE DISSOLVED JUST AS THE PC REVOLUTION WAS BEING BORN
NOW IT'S BIG BLUE THAT WISHES IT HAD A LIFE PRESERVER

IN SNUFFING THE IBM LAWSUIT THE REAGAN JUSTICE DEPARTMENT BEGAN REINING IN
THE ANTITRUST GANG'S APPETITE FOR FIXING WHAT AIN'T BROKE NOW ALL THE
RECENT CAMPAIGN TALK ABOUT ACTIVIST GOVERNMENT WAS SURELY MUSIC TO THE
BUREAUCRACY'S EARS INSURANCE EXEC ZOE BAIRD WILL SOON TAKE OVER AS MR
CLINTON'S ATTORNEY GENERAL THOSE WHO INHERIT THE FEDERAL LEVIATHAN SHOULD
REMEMBER ONE OF THE LESSADVERTISED DUTIES OF THE JOB PROTECTING AMERICA
FROM WASHINGTON 9301070100 930107 INTERNATIONAL BRIEF TOYOTA MOTOR
CORP FIRM TOSHIBA MULL VENTURE IN MOBILE COMMUNICATIONS

TOYOTA MOTOR CORP AND HIGHTECHNOLOGY CONCERN TOSHIBA CORP ARE IN TALKS TO
ESTABLISH A JOINTVENTURE COMPANY IN MOBILE COMMUNICATIONS THE COMPANIES
SAID

THE TIEUP WOULD DEVELOP PRODUCE AND MARKET DIGITAL CELLULAR PHONES AND
PERHAPS DIGITAL INFORMATION SYSTEMS FOR MOTOR VEHICLES THE OFFICIALS SAID
WHILE CELLULAR COMMUNICATIONS IN JAPAN NOW USE ANALOG SIGNALS DIGITAL
SERVICE IS SLATED TO BEGIN THIS SPRING

A TOYOTATOSHIBA ALLIANCE WOULD FOLLOW NISSAN MOTOR CO AND HITACHI LTD'S
ESTABLISHMENT IN 1991 OF A SIMILAR JOINT VENTURE THE NISSANHITACHI COMPANY
MARKETS AUDIOVISUAL PRODUCTS FOR AUTOMOBILES BUT IS PLANNING AN ENTRY INTO
THE CAR CELLULARPHONE BUSINESS A COMPANY OFFICIAL SAID

THE TENTATIVE TOYOTATOSHIBA TIEUP WOULD BENEFIT FROM A COMING
LIBERALIZATION OF THE JAPANESE CELLULARPHONE MARKET CURRENT GOVERNMENT
RULES LIMIT USERS TO RENTING OR LEASING MOBILE COMMUNICATIONS EQUIPMENT BUT
NEW MEASURES WILL OPEN THE MARKET TO SALES OF THE ADVANCED TELEPHONE
EQUIPMENT IN APRIL 1994 9301070099 930107 QUARTERLY MUTUAL FUNDS REVIEW
 SHARES OF CLOSEDEND BOND FUNDS TRADE AT A SLIGHT PREMIUM

NEW YORK CLOSEDEND BOND FUND SHARES WERE TRADING AT A SLIGHT PREMIUM TO
THE VALUE OF THEIR UNDERLYING PORTFOLIOS AT YEAR END BUT THE PREMIUMS
STARTED TO NARROW IN THE FOURTH QUARTER

AT THE END OF 1991 THE SHARES OF THESE PUBLICLY TRADED BOND FUNDS WERE AT A
SLIGHT DISCOUNT

CLOSEDEND FUNDS ARE A WAY FOR SMALL INVESTORS TO BUY SHARES OF POOLS OF
SECURITIES RUN BY PROFESSIONAL MANAGERS BUT UNLIKE REGULAR MUTUAL FUNDS
CLOSEDEND FUNDS ARE PUBLICLY TRADED THEIR PRICES ARE SET BY SUPPLY AND
DEMAND SO THEIR SHARES OFTEN SELL AT DISCOUNTS OR PREMIUMS THAT IS
BELOW OR ABOVE TO THE FUND'S NET ASSET VALUE WHICH IS THE PERSHARE
VALUE OF ITS UNDERLYING PORTFOLIO OF SECURITIES

CLOSEDEND MUNICIPAL BOND FUNDS SOLD FOR A PREMIUM OF 05 TO NET ASSET
VALUE AT THE END OF 1992 COMPARED WITH A DISCOUNT OF 09 AT THE END OF
1991 BUT THE PREMIUM ON MUNICIPAL BOND FUNDS HAD BEEN A HIGHER 25 AT THE
END OF SEPTEMBER

TAXABLE BOND FUNDS SOLD FOR A 05 PREMIUM TO NET ASSET VALUE AT THE END OF
1992 COMPARED WITH A DISCOUNT OF 06 A YEAR EARLIER BUT THESE FUNDS ALSO
SAW THEIR PREMIUMS DECLINE SOMEWHAT FROM SEPT 9301070098 930107
CIBAGEIGY UNIT TO REDUCE STAFF

SUMMIT NJ AP CIBAGEIGY CORP'S PHARMACEUTICAL DIVISION SAID IT WILL
CUT AS MANY AS 550 WORKERS OVER THE NEXT SIX MONTHS TO REDUCE COSTS

THE DIVISION SAID IT WILL CUT 8 TO 10 OF ITS 5500PERSON US WORK FORCE
60 OF WHOM WORK IN NEW JERSEY

THE SUBSIDIARY OF SWISS DRUG MANUFACTURER CIBAGEIGY LTD SAID THE CUTS ARE
PART OF AN OVERALL COST REDUCTION PROGRAM INCLUDING CONSOLIDATION AND
POSSIBLY REORGANIZATION MEANT TO IMPROVE PROFITABILITY AND EFFICIENCY
OVER THE NEXT DECADE 9301070097 930107 AMERICAN PRESIDENT BUYS SHIPS

OAKLAND CALIF AMERICAN PRESIDENT COS SAID IT COMPLETED THE PURCHASE OF
THREE CONTAINER SHIPS FOR A TOTAL OF 197 MILLION

THE TRANSPORTATION COMPANY SAID THE PURCHASE OF THE SHIPS WHICH HAD BEEN
LEASED UNDER LONGTERM CHARTER WOULD ALLOW ITS AMERICAN PRESIDENT LINES
LTD SUBSIDIARY TO AGAIN PAY DIVIDENDS TO THE PARENT COMPANY THE PAYMENTS
HAD BEEN RESTRICTED DURING THE CHARTERS UNDER US MARITIME ADMINISTRATION
REGULATIONS 9301070096 930107 INTERNATIONAL SECURITIES COMPANIES IN
JAPAN READY PLANS FOR TRUST BANK UNITS  SPECIAL TO THE WALL STREET
JOURNAL

TOKYO MAJOR JAPANESE SECURITIES COMPANIES WILL AIM TO SET UP TRUST BANK
SUBSIDIARIES LATER THIS YEAR AFTER LAWS LOWERING THE BARRIERS BETWEEN
DIFFERENT FINANCIAL SECTORS TAKE EFFECT FROM APRIL

SPOKESMEN FOR THE BIG FOUR BROKERS NOMURA SECURITIES CO DAIWA
SECURITIES CO NIKKO SECURITIES CO AND YAMAICHI SECURITIES CO SAID
DETAILS AREN'T YET SETTLED BUT FORMAL APPLICATIONS TO THE FINANCE MINISTRY
WILL BE MADE IN COMING MONTHS AND THE SUBSIDIARIES COULD BE LAUNCHED AROUND
AUTUMN

NIPPON CREDIT BANK LTD ONE OF JAPAN'S THREE LONGTERM CREDIT BANKS IS
ALSO PLANNING TO SET UP A TRUST BANK UNIT BANK OF TOKYO IS CONSIDERING
SETTING UP A TRUST BANK SUBSIDIARY BUT HASN'T REACHED A DECISION A
SPOKESMAN SAID

IN DECEMBER THE FINANCE MINISTRY ANNOUNCED THAT LONGTERM CREDIT BANKS AND
FOREIGNEXCHANGE BANKS IE BANK OF TOKYO WOULD BE GIVEN A ONEYEAR HEAD
START OVER MAJOR COMMERCIAL BANKS IN SETTING UP SUBSIDIARIES IN OTHER
FINANCIAL SECTORS

SPOKESMEN FOR JAPAN'S OTHER TWO LONGTERM CREDIT BANKS INDUSTRIAL BANK OF
JAPAN LTD AND LONGTERM CREDIT BANK OF JAPAN LTD SAID THEY ARE PLANNING
TO SET UP BROKERAGE SUBSIDIARIES

SMALLER JAPANESE BROKERAGE HOUSES SAID THEY WILL CONSIDER SETTING UP TRUST
BANK SUBSIDIARIES IN THE FUTURE BUT WITH THE STOCK MARKET MIRED IN A
PROLONGED SLUMP DECISIONS ON LAUNCHING SUBSIDIARIES MUST BE POSTPONED UNTIL
BUSINESS CONDITIONS IMPROVE SEVERAL COMPANIES SAID 9301070095 930107
DRUG EMPORIUM INC BUYBACK

COLUMBUS OHIO DRUG EMPORIUM INC SAID IT AGREED TO PURCHASE 16 MILLION
OF ITS SHARES HELD BY PHILIP I WILBER ITS FORMER CHAIRMAN AND CHIEF
EXECUTIVE OFFICER AD PELUNIS A DIRECTOR AND OTHER SHAREHOLDERS AT A
PRICE OF ABOUT 5375 A SHARE

THE DRUGSTORE CHAIN SAID MESSRS WILBER AND PELUNIS WILL RESIGN FROM THE
BOARD AFTER THE TRANSACTION MR WILBER RESIGNED AS CHAIRMAN AND CHIEF
EXECUTIVE LAST MARCH DRUG EMPORIUM HAS ABOUT 13 MILLION SHARES OUTSTANDING
9301070094 930107 OTC FOCUS INTEL CHALLENGES MICROSOFT AS ITS STOCK
LEAPS 84  BY SARA CALIAN AND CRAIG TORRES STAFF REPORTERS OF THE
WALL STREET JOURNAL

NEW YORK MOVE OVER MICROSOFT THERE'S ANOTHER CHAMPION TO SHARE THE
WINNER'S RING INTEL CORP

INTEL'S STOCK PRICE SOARED 84 YESTERDAY AS THE SANTA CLARA CALIF
SEMICONDUCTOR GIANT LEAPED 7 5/8 TO 98 5/8 A NEW HIGH ANALYSTS EXPECT TO
SEE THE STOCK EASILY VAULT ABOVE THE 100 MARK IN THE NEXT FEW DAYS AND IT
COULD KEEP RISING MERRILL LYNCH YESTERDAY PREDICTED THE STOCK COULD HIT 130
THIS YEAR

INTEL'S SURGE HELPED TO BUOY THE WHOLE OVERTHECOUNTER STOCK MARKET THE
NASDAQ COMPOSITE INDEX JUMPED 751 POINTS OR 111 TO 68185 ANOTHER
RECORD FOR THE BENCHMARK THE INDEX THUS HAS SURGED 18 FROM EARLY OCTOBER
AND NOW STANDS ABOUT 6 ABOVE LAST YEAR'S PEAK OF 64492 SET IN FEBRUARY
TOTAL VOLUME REACHED 2700 MILLION SHARES UP FROM TUESDAY'S 2294 MILLION
ADVANCERS OUTNUMBERED DECLINERS 1538 TO 1056

INTEL LED THE WHOLE MARKET UP SAID LANCE ZIPPER HEAD OF OTC TRADING AT
KIDDER PEABODY & CO EVERYBODY IN THE WORLD WANTED TO BUY IT

BUT WHY INTEL HAS DISTINGUISHED ITSELF AS A BRILLIANT COMPETITOR IN THE
TECHNOLOGY WARS EVEN AS COMPETITORS CLONED INTEL'S 386 CHIP DESIGN THE
SEMICONDUCTOR COMPANY BEGAN TO CUT PRICES AND ROB THE PROFITS OF
COMPETITORS AT THE SAME TIME INTEL WAS PREPARING TO ROLL OUT ITS 486 CHIP
SERIES LONG BEFORE THE CLONERS WERE READY INTEL PRODUCED THE 486 SERIES
WITH ENORMOUS PRODUCTIVITY AND DESIGN GAINS AND NOW ANALYSTS THINK THE CHIP
HAS CAUSED A FULLBLOWN REPLACEMENT CYCLE IN THE PERSONALCOMPUTER MARKET

BUT JUST AS OTHER CHIP MAKERS THINK THEY CAN CATCH UP INTEL IS ABOUT TO
ROLL OUT PENTIUM THIS CHIP COULD BEGIN TO MAKE INROADS TO BUST INTO EVEN
BIGGER COMPETITORS' TERRITORYWORKSTATION RISC CHIPS ANALYSTS SAY

INTEL IS JUST A MASTER OF COMPETITIVE TACTICS SAYS THOMAS THORNHILL III
MANAGING DIRECTOR AT MONTGOMERY SECURITIES IN SAN FRANCISCO

BUT INTEL SHONE MOST BRIGHTLY TRADERS SAID ONE REASON INVESTORS ARE CHASING
INTEL IS THAT THEY ARE FLEEING BIGGER TECHNOLOGY STOCKS YOU HAVE MASSIVE
MONEY FLOWING OUT OF INTERNATIONAL BUSINESS MACHINES SAYS RUSSELL CRABS
DIRECTOR OF RESEARCH AT SOUNDVIEW FINANCIAL GROUP THERE ARE SOME BIG
PLAYERS WHO HAVE TO MOVE SOME MONEY AROUND

THE RESULT IS THAT INTEL ITSELF IS BECOMING ONE OF THE MARKET'S GIANT
STOCKS AT YESTERDAY'S CLOSING PRICE THE CHIP MAKER HAD A STOCK MARKET
VALUE OF 204 BILLION APPROACHING THE 245 MARKET VALUE OF MICROSOFT AND
CLOSE TO THE WANING 27 BILLION MARKET CAPITALIZATION OF IBM

THE RANKINGS COULD CHANGE SOON INTEL STILL HAS A WAYS TO GO SAYS PAUL
WICK PORTFOLIO MANAGER AT J&W SELIGMAN & CO

MONTGOMERY'S MR THORNHILL THINKS THE PENTIUM CHIP COULD PROPEL INTEL INTO A
NEW ERA OF DOMINANCE COMPUTER ENGINEERS WHO BUILD SYSTEMS FOR CORPORATIONS
COULD START TO LINK UP NETWORKS OF PENTIUMBASED PERSONAL COMPUTERS
THREATENING CERTAIN SECTORS OF THE BIG MAINFRAME MARKET IT WILL DRIVE
DEMAND AND REPLACEMENT MR THORNHILL SAYS

SUCH VISIONS OF GLORY ARE WHY ANALYSTS SUCH AS DANIEL KLESKEN SENIOR
SEMICONDUCTOR ANALYST AT ROBERTSON STEPHENS & CO ARE FORECASTING 18 TO
19 ANNUAL EARNINGS GROWTH FOR INTEL IN 1994 WITH PERSHARE EARNINGS RISING
TO ABOUT 8 THAT YEAR IN 1991 EARNINGS WERE 392 A SHARE

THE CLONES WILL ALWAYS BE THERE BUT INTEL WILL CONTINUE TO DOMINATE THE
LEADING EDGE MR KLESKEN SAYS HE ADDS THAT INTEL'S PRODUCTIVITY GAINS ARE
BREATHTAKING THEY'VE DECREASED THE TIME IT TAKES TO BRING NEW TECHNOLOGY
INTO HIGHVOLUME MANUFACTURING HE SAYS

DESPITE RECENT SPECULATION THE BROADER NASDAQ MARKET WAS DUE FOR A TUMBLE
TRADERS SAID INVESTORS WERE BUYING AGGRESSIVELY YESTERDAY THE NASDAQ HAS
BEEN VERY STRONG SAID LOUIS TODD HEAD OF EQUITY TRADING FOR JC BRADFORD
& CO IN NASHVILLE TENN EVEN THOUGH A LOT OF THESE STOCKS HAVE GOTTEN OUT
OF LINE THERE IS STILL A LOT OF MONEY OUT THERE MR TODD SAID

BUT INVESTORS FEAR POSSIBLE ACTIONS BY MR CLINTON THAT COULD HURT
MEDICALRELATED STOCKS BIOGEN DROPPED 2 1/4 TO 43 1/2 AMGEN SLIPPED 1/2 TO
67 1/4 AND US HEALTHCARE FELL 1 TO 43 1/4 

ELSEWHERE IN THE OTC MARKET YESTERDAY MEADOWBROOK REHABILITATION GROUP
DROPPED 2 1/4 TO 4 3/4 THE PROVIDER OF REHABILITATION SERVICES TO PATIENTS
WITH NEUROLOGICAL DISORDERS SAID IT EXPECTS TO REPORT LOWER EARNINGS FOR THE
SECOND QUARTER ENDED DEC 31 THE COMPANY ESTIMATED THE QUARTER'S PROFIT AT
TWO CENTS TO THREE CENTS A SHARE DOWN FROM 14 CENTS A YEAR EARLIER

JC BRADFORD & CO ANALYST THOMAS MCGINNIS CUT HIS INVESTMENT RATING TO
ACCUMULATE FROM BUY ON THE STOCK OF MEADOWBROOK WHICH IS BASED IN
EMERYVILLE CALIF

UNITED WASTE SYSTEMS CLIMBED 1 1/4 TO 14 PAINEWEBBER ANALYST ROBERT MINER
INITIATED COVERAGE WITH A BUY RATING PAINEWEBBER WAS LEAD MANAGER ON THE
GREENWICH CONN WASTE MANAGEMENT COMPANY'S INITIAL PUBLIC OFFERING LAST
MONTH OF THREE MILLION SHARES AT 12 APIECE ON TUESDAY THE OFFERING'S
COMANGER ALEX BROWN & SONS ALSO INITIATED COVERAGE WITH A BUY RATING

ZITEL CORP FELL 1 3/8 TO 4 1/8 LATE TUESDAY AFTERNOON THE MILPITAS
CALIF COMPANY SAID PRELIMINARY ESTIMATES FOR THE FIRST QUARTER ENDED DEC
31 INDICATE REVENUE FELL ABOUT 35 FROM A YEAR AGO

THE COMPANY SAID IT WILL REPORT A SIGNIFICANT LOSS FOR THE QUARTER BUT
DOESN'T BELIEVE THE FIRST QUARTER WILL REFLECT ITS PERFORMANCE FOR THE YEAR
ZITEL SAID THE PRELIMINARY ESTIMATES REFLECT SEVERAL MAJOR ONETIME CHARGES
THE COMPANY'S TRANSITION OUT OF A COMARKETING AGREEMENT WITH UNISYS CORP
WHICH EXPIRED OCT 1 THE CHALLENGES OF INCREASED COMPETITION AND THE
RECESSION IN THE EUROPEAN MARKET ZITEL DEVELOPS COMPUTER MEMORY SYSTEMS

ACCLAIM ENTERTAINMENT JUMPED 2 1/4 TO 19 3/8 ALEX BROWN & SONS RAISED ITS
INVESTMENT RATING ON THE OYSTER BAY NY VIDEO GAME MAKER TO STRONG BUY
FROM BUY ON TUESDAY ACCLAIM REPORTED EARNINGS OF 22 CENTS A SHARE FOR
THE FIRST QUARTER ENDED NOV 30 UP FROM 12 CENTS A SHARE A YEAR AGO

SCIOS NOVA INC ROSE 1 1/8 TO 9 5/8 HAMBRECHT & QUIST BIOTECHNOLOGY ANALYST
WOLE FAYEMI BEGAN COVERAGE OF THE STOCK WITH A BUY RATING MR FAYEMI SAID
PRODUCT DEVELOPMENTS IN THE LONGER TERM WILL CONFIRM THE VALUE OF THE
RECENTLY FORMED COMPANY SCIOS NOVA WAS FORMED IN SEPTEMBER THROUGH A MERGER
OF SCIOS INC WITH NOVA PHARMACEUTICAL THE COMPLEMENTARY RESOURCES INCLUDE
A BROAD PRODUCT PORTFOLIO WITH TWO CLASSES OF NOVEL ANTIINFLAMMATORY DRUGS
SMALL MOLECULE CHEMISTRY CAPABILITIES AND CLINICAL DEVELOPMENT AND
REGULATORY EXPERTISE MR FAYEMI SAID

PLAYERS INTERNATIONAL LEAPED 1 1/4 TO 7 7/8 THE LAKE CHARLES LA COMPANY
SAID IT SIGNED A BINDING LETTER OF INTENT WITH JEBACO INC TO FORM A JOINT
VENTURE TO DEVELOP A RIVERBOAT CASINO IN LAKE CHARLES THE COST OF THE
PROJECT IS ESTIMATED AT 23 MILLION WITH PLAYERS RESPONSIBLE FOR 75 OF THE
FINANCING

AMONG THE ADVANCING TECHNOLOGY STOCKS YESTERDAY WERE NOVELL UP 1 1/8 TO 30
3/8 SUN MICROSYSTEMS UP 5/8 TO 37 AND SEAGATE TECHNOLOGIES UP 1 3/4 TO
21 1/4

BORLAND INTERNATIONAL HOWEVER FELL 1 1/2 TO 21 1/4 THE COMPANY'S PARADOX
40 DATABASE MANAGEMENT SYSTEM LOST TO MICROSOFT'S FOXPRO 20 IN PERFORMANCE
TESTS CONDUCTED BY THE NATIONAL SOFTWARE TESTING LABORATORIES

AMONG THE LOSERS IN THE HEALTHCARE ARENA WERE MEDCO CONTAINMENT SERVICES
WHICH FELL 7/8 TO 34 5/8 AND OXFORD HEALTH PLANS WHICH SLID 2 1/2 TO 52
1/2

THE SELLING SPREAD TO BIOTECHNOLOGY AND MEDICAL DEVICE STOCKS ST JUDE
MEDICAL SLID 1 5/8 TO 38 1/8

DIBRELL BROTHERS WHICH SUPPLIES TOBACCO LEAF TO CIGARETTE COMPANIES FELL 1
3/4 TO 41 3/4 THE DROP FOLLOWED SELLING OF TOBACCO COMPANY SHARES ON THE
BIG BOARD AFTER THE ENVIRONMENTAL PROTECTION AGENCY DECLARED PASSIVE
CIGARETTE SMOKE A CARCINOGEN

YESTERDAY'S RALLY IN THE OTC MARKET FOOLED MANY OF THE MARKET'S VETERANS
EVERYBODY THOUGHT THAT THE MARKET WAS GOING TO COME DOWN A LITTLE BIT
SAID KIDDER PEABODY'S MR ZIPPER

A STEADY CONVERSION OF THOSE SKEPTICS WILL KEEP FUELING THE MARKET'S RISE
SAID NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE JOHNSON
LANE NONETHELESS MR GOLD CAUTIONED THAT OTC STOCKS CAN'T DEFY THE BIG
BOARD FOREVER

I THINK THE SELLING EVENTUALLY WILL SPREAD TO THE OTC MARKET IF THE
WEAKNESS CONTINUES IN THE BIG BOARD HE SAID YESTERDAY THE DOW JONES
INDUSTRIAL AVERAGE FELL 271 POINTS TO 330516

CRAIG S SMITH CONTRIBUTED TO THIS ARTICLE 9301070093 930107 WHO'S NEWS
 MACY'S FINKELSTEIN RESIGNS AS CHAIRMAN FOR WEST DIVISION

NEW YORK RH MACY & CO SAID DANIEL FINKELSTEIN RESIGNED AS CHAIRMAN OF
MACY'S WEST AND IS SUCCEEDED ON A TEMPORARY BASIS BY RUDOLPH BORNEO THE
DIVISION'S PRESIDENT

MR FINKELSTEIN'S DEPARTURE COMES ON THE HEELS OF MACY'S POOR CHRISTMAS
PERFORMANCE ON THE WEST COAST IN DECEMBER SAMESTORE SALES DECLINED 05
IN SOUTHERN CALIFORNIA AND FELL 5 IN NORTHERN CALIFORNIA IN CONTRAST
MACY'S STORES ON THE EAST COAST INCLUDING THOSE IN FLORIDA GEORGIA AND
NEW YORK RECORDED STRONG SAMESTORE SALES GAINS DURING THE HOLIDAY PERIOD

MR FINKELSTEIN'S DECISION WASN'T ENTIRELY UNEXPECTED HIS FATHER EDWARD
FINKELSTEIN RESIGNED AS CHAIRMAN OF RH MACY IN APRIL AND HIS BROTHER
MITCHELL FINKELSTEIN RESIGNED IN NOVEMBER AS PRESIDENT/ASIA OF MACY'S
PRIVATE LABEL BUSINESS MITCHELL FINKELSTEIN TOGETHER WITH HIS FATHER IS
EXPLORING THE POSSIBILITY OF OPENING A SPECIALTY STORE CHAIN IN SOUTHERN
CHINA AND DANIEL FINKELSTEIN SAID YESTERDAY IN A STATEMENT THAT HE WILL
JOIN THEM ON A SHORTTERM BASIS

ALTHOUGH WELLLIKED WITHIN THE MACY'S ORGANIZATION SOME COMPANY EXECUTIVES
QUESTIONED WHETHER DANIEL FINKELSTEIN NOW AGE 38 POSSESSED THE NECESSARY
EXPERIENCE WHEN HE WAS NAMED CHIEF EXECUTIVE OFFICER OF MACY'S CALIFORNIA IN
SEPTEMBER 1989 IN THE PAST TWO YEARS CALIFORNIA HAS BEEN PARTICULARLY
HARDHIT BY THE RECESSION AS WELL AS A SIGNIFICANT EARTHQUAKE AND THE
RIOTING IN LOS ANGELES AND MANY OF THE STATE'S RETAILERS HAVE HAD SETBACKS
AS A RESULT 9301070092 930107 WHAT'S NEWS  BUSINESS AND FINANCE

CORPORATE BOND ISSUANCE YESTERDAY TOTALED A HUGE 47 BILLION THE SECOND
LARGEST SINGLEDAY TOTAL EVER COMPANIES WERE LURED BY THE LOWEST INTEREST
RATES IN MONTHS AND INVESTORS EAGERLY BOUGHT THE SECURITIES ESPECIALLY
THOSE WITH MATURITIES OF 20 YEARS OR MORE THE TREASURY'S LONG BOND LOST 1/4
POINT

BIG GROWTH STOCKS SLUMPED ON SHARP DECLINES IN THE TOBACCO AND DRUG SECTORS
THE DOW JONES INDUSTRIALS LOST 271 POINTS TO 330516 BUT SMALLER STOCKS
LED BY TECHNOLOGY ISSUES SOARED TO A RECORD WITH THE NASDAQ COMPOSITE
INDEX CLIMBING 751 TO 68185 THE DOLLAR FINISHED HIGHER

UNITED AIRLINES WILL LAY OFF 2800 WORKERS AND CANCEL PLANS TO HIRE ANOTHER
1900 AS PART OF AN EFFORT TO SLASH ITS ANNUAL EXPENSES 400 MILLION THE
PAY OF OFFICERS AND MANAGERS WILL BE CUT 5 AND THAT OF ITS DIRECTORS 10

FORD'S TAURUS OUSTED HONDA'S ACCORD AS THE BESTSELLING CAR IN THE US LAST
YEAR THE VICTORY MARKS THE FIRST TIME SINCE 1988 THAT AN AMERICAN CAR HAS
BEEN NO 1 IN ITS HOME MARKET

LEADERS OF THE BIG THREE MET WITH CLINTON WHO RAISED THEIR HOPES THAT HIS
ADMINISTRATION WILL BE TOUGHER ON JAPANESE IMPORTS AND WILL LISTEN TO THEIR
REGULATORY CONCERNS

CHARLES KEATING WAS FOUND GUILTY BY A FEDERAL COURT JURY OF WIDERANGING
FRAUD CHARGES CULMINATING THE CRIMINAL ACTIONS AGAINST THE MOST NOTORIOUS
FIGURE OF THE THRIFT CRISIS

STOCK MUTUAL FUNDS GAINED AN AVERAGE OF 888 IN 1992 TURNING THE YEAR INTO
A RESPECTABLE ONE EVEN THOUGH THE RETURN LAGGED BEHIND THE 3561 INCREASE
OF 1991 TAXABLE US BOND FUNDS GAINED 787 OUTPACING MONEY MARKET FUNDS'
331 RETURN

THE BUDGET DEFICIT WILL BE A RECORD 3273 BILLION THIS FISCAL YEAR AND WILL
STILL TOP 300 BILLION IN FOUR YEARS WITHOUT POLICY CHANGES BUSH SAID
CLINTON CALLED THE FIGURES UNSETTLING AND AIDES SAID THE PRESIDENTELECT
IS NOW REEXAMINING HIS FISCAL BLUEPRINT

IBM PLANS SHARP STAFF CUTBACKS AT THREE NEW YORK STATE PLANTS THAT ARE
CLOSELY ASSOCIATED WITH THE COMPANY'S MAINFRAMECOMPUTER OPERATION

PRODIGY SERVICES IS UNDERGOING A MAJOR SHAKEUP THAT HAS LED TO SEVERAL
SENIORLEVEL DEPARTURES AND COULD ULTIMATELY MEAN WIDER CUTS IN THE
HOMECOMPUTER NETWORK'S WORK FORCE

AT&T IS EXPECTED TO ANNOUNCE THAT IT HAS BOUGHT A 20 STAKE IN CANADA'S
UPSTART LONGDISTANCE CARRIER UNITEL COMMUNICATIONS THE MOVE IS A SLAP AT
CANADIAN OPERATORS THAT HAVE TEAMED UP WITH ITS RIVAL MCI

SALOMON BROTHERS' FORMER GOVERNMENTTRADING DESK DIRECTOR PAUL MOZER IS
EXPECTED TO PLEAD GUILTY TO TWO FELONY COUNTS RELATED TO THE FIRM'S TREASURY
SCANDAL IN A PLEA AGREEMENT THAT MAY KEEP HIM OUT OF JAIL

AN AIRBUS OFFICIAL DENIED THE CONSORTIUM HAS BEEN CUT OUT OF TALKS BETWEEN
ITS MEMBER COMPANIES AND BOEING WHICH IS ASSEMBLING A NEW PARTNERSHIP TO
BUILD A SUPERJUMBO JET

COMPAQ PLANS TO EXPAND IN THE SMALLBUSINESS AND HOME PC MARKETS THE
STRATEGY INCLUDES SELLING CONSUMERORIENTED PRODUCTS AND VASTLY INCREASING
THE COMPANY'S RETAIL REACH

COMMONWEALTH EDISON OF ILLINOIS WAS ORDERED BY REGULATORS TO REFUND ABOUT
600 MILLION AS PART OF A RATE REDUCTION THAT COULD FURTHER WEAKEN THE
FINANCES OF THE NUCLEAR UTILITY

GE CAPITAL AGREED TO BUY WEYERHAEUSER'S GNA CONSUMER FINANCE UNIT FOR
ROUGHLY 525 MILLION THE ACQUISITION MARKS THE GE DIVISION'S FIRST FORAY
INTO INDIVIDUAL INVESTMENTS

CITIC PACIFIC PLANS NEWSHARE SALES OF UP TO 9428 MILLION TO FINANCE
SEVERAL ACQUISITIONS FROM ITS CHINESE PARENT INCLUDING A STAKE IN HONG
KONG'S TELECOMMUNICATIONS MONOPOLY

CHEVRON WILL RESTATE ITS 1992 RESULTS TO COMPLY WITH NEW ACCOUNTING
STANDARDS THE MOVE WILL REDUCE ALREADYREPORTED NINE MONTHS NET INCOME BY
540 MILLION OR 158 A SHARE

BONDS LEHMAN BROTHERS TREASURY INDEX 472473 OFF 958

COMMODITIES OIL 1904 A BARREL OFF 22 CENTS DOW JONES FUTURES INDEX
12247 UP 011 SPOT INDEX 12117 UP 004

DOLLAR 12515 YEN UP 032 16340 MARKS UP 00085 9301070091 930107
LAW LEGAL BEAT MOZER PLEA AGREEMENT EXPECTED IN SALOMON TREASURY
BOND SCANDAL  BY JONATHAN M MOSES STAFF REPORTER OF THE WALL
STREET JOURNAL

PAUL MOZER THE FORMER HEAD OF THE GOVERNMENT TRADING DESK AT SALOMON
BROTHERS INC IS EXPECTED TO PLEAD GUILTY TO TWO FELONY COUNTS OF LYING TO
TREASURY OFFICIALS IN A PLEA AGREEMENT THAT MAY KEEP HIM OUT OF JAIL
LAWYERS FAMILIAR WITH THE CASE SAID

BUT SIGNIFICANT BATTLES REMAIN FOR MR MOZER WHO IS SCHEDULED TO MAKE HIS
FIRST APPEARANCE IN FEDERAL COURT TODAY CHIEF AMONG THOSE CONCERNS
ACCORDING TO INDIVIDUALS FAMILIAR WITH THE CASE ARE A HEARING THAT WILL BE
HELD TO DETERMINE HOW MUCH MONEY WAS LOST AS A RESULT OF MR MOZER'S ALLEGED
WRONGDOING AND POSSIBLE FUTURE PROSECUTION FOR CRIMINAL VIOLATIONS OF
ANTITRUST LAWS

MEANWHILE MR MOZER STILL FACES A CIVIL SUIT BROUGHT BY THE SECURITIES AND
EXCHANGE COMMISSION ACCUSING HIM OF FALSIFYING BIDS IN EIGHT TREASURY
AUCTIONS MR MOZER HASN'T AGREED TO SETTLE THE SEC SUIT HE ALSO IS NAMED
AS A DEFENDANT IN THE LITIGATION BROUGHT BY INVESTORS AND TRADING FIRMS OVER
THE TREASURYS TRADING SCANDAL AT THE SALOMON INC UNIT

UNDER THE PLEA AGREEMENT MR MOZER ALSO WILL SET UP A 500000 FUND WHICH
WILL BE USED TO SATISFY ANY SEC JUDGMENT AND CIVIL CLAIMS AGAINST HIM IF
ANY MONEY IS LEFT OVER THE REMAINDER WILL GO TO THE GOVERNMENT

THE TWO CRIMES TO WHICH MR MOZER IS PLEADING GUILTY CONCERN FALSE BIDS HE
SUBMITTED IN THE FEB 21 1991 AUCTIONS IN THE NAMES OF WARBURG ASSET
MANAGEMENT AND QUANTUM FUND TWO SALOMON CUSTOMERS WHEN THE BIDS ACTUALLY
WERE CONTROLLED BY SALOMON NEITHER OF THE TWO FUNDS KNEW THAT MR MOZER WAS
SUBMITTING BIDS IN THEIR NAMES MR MOZER WILL ADMIT TO TWO COUNTS OF MAKING
FALSE STATEMENTS TO US TREASURY OFFICIALS ABOUT THE FACT THAT THE SALOMON
DESK HE RAN WAS REALLY BEHIND THE BIDS

AS A RESULT OF MR MOZER'S BIDS SALOMON CONTROLLED ABOUT 57 OF THAT
TREASURY AUCTION TREASURY DEPARTMENT RULES PROHIBIT ANY ONE FIRM FROM
CONTROLLING MORE THAN 35 AT AUCTION

MR MOZER 36 YEARS OLD WAS THE CENTRAL FIGURE IN THE TREASURYAUCTION
BIDDING SCANDAL AT SALOMON BROTHERS HE WAS FIRED FROM THE FIRM IN AUGUST OF
1991 AFTER AN INTERNAL INVESTIGATION FOUND THAT HE ALLEGEDLY ARRANGED FOR
THE FIRM TO BID FOR MORE THAN 35 OF SEVERAL TREASURY ISSUES

THE ENSUING SCANDAL AND GOVERNMENT INVESTIGATION LED TO A SIGNIFICANT
SHAKEUP AT SALOMON WHICH EVENTUALLY PAID 290 MILLION IN FINES TO SETTLE
SEC CIVIL CHARGES THREE TOP SALOMON EXECUTIVES CHAIRMAN JOHN GUTFREUND
PRESIDENT THOMAS STRAUSS AND VICE CHAIRMAN JOHN MERIWETHER LEFT THE FIRM
AND ALSO REACHED INDIVIDUAL SETTLEMENTS WITH THE SEC THE SEC ACCUSED THE
THREE EXECUTIVES WITH FAILURE TO SUPERVISE PROPERLY ALLEGING THAT THEY KNEW
OF MR MOZER'S ACTIVITIES FOR SEVERAL MONTHS BEFORE TAKING ACTION AGAINST
HIM

MR MOZER'S PLEA AGREEMENT SAVES HIM THE POSSIBILITY OF BEING INDICTED BY
THE US ATTORNEY'S OFFICE IN NEW YORK ON FAR MORE SERIOUS CRIMES SUCH AS
WIRE FRAUD AND CONSPIRACY IN CONNECTION WITH HIS TREASURY BIDS ALSO WHILE
THE SEC'S CIVIL SUIT HAS ACCUSED HIM OF INSIDER TRADING FOR SELLING 17
MILLION OF SALOMON STOCK TWO DAYS BEFORE THE TREASURY SCANDAL WAS DISCLOSED
HE WON'T FACE A CRIMINAL INSIDERTRADING CHARGE

EACH COUNT OF LYING TO A TREASURY OFFICIAL CARRIES A PENALTY OF AS MUCH AS
FIVE YEARS IN JAIL AND A 250000 FINE BUT UNDER THE PLEA AGREEMENT REACHED
BETWEEN MR MOZER'S ATTORNEYS AND THE US ATTORNEY'S OFFICE THE TWO SIDES
WILL ASK THE JUDGE ASSIGNED TO THE CASE TO SENTENCE MR MOZER UNDER A
SPECIFIED LEVEL OF THE FEDERAL SENTENCING GUIDELINES THAT COULD ALLOW HIM TO
AVOID PRISON TIME

AT THE AGREEDUPON LEVEL OF THE SENTENCING GUIDELINES A DEFENDANT SUCH AS
MR MOZER WHO HAS NO PREVIOUS CRIMINAL HISTORY COULD RECEIVE ZERO TO SIX
MONTHS IN JAIL THE JUDGE COULD ALSO GIVE HIM PROBATION THE SENTENCING
AGREEMENT HOWEVER ISN'T BINDING ON THE JUDGE AND MR MOZER COULD SEE THAT
SENTENCING LEVEL PUSHED TO A STRICTER LEVEL DEPENDING ON HOW MUCH HIS
ALLEGED WRONGDOING COST INVESTORS AND TRADING FIRMS IN THE FEBRUARY AUCTION
FOR EXAMPLE IF IT WERE FOUND THAT MR MOZER CAUSED LOSSES OF MORE THAN
70000 THE SENTENCING LEVEL WOULD RISE AND HE WOULD FACE TEN TO SIXTEEN
MONTHS IN JAIL AND IF THE LOSS IS MORE THAN 1 MILLION HE COULD FACE MORE
THAN TWO YEARS IN PRISON

MR MOZER'S ATTORNEY STANLEY ARKIN ONE OF THE MOST SUCCESSFUL CRIMINAL
DEFENSE LAWYERS DURING THE WALL STREET SCANDALS OF THE 1980S HAS LONG
MAINTAINED THAT MR MOZER'S ACTIONS CAUSED NO LOSSES TO INVESTORS OR OTHER
TRADING FIRMS THE PROSECUTORS AND MR ARKIN HAVE AGREED TO REQUEST THAT THE
SENTENCING JUDGE HOLD A SPECIAL HEARING TO DETERMINE HOW MUCH OF A LOSS WAS
CAUSED BY MR MOZER'S ALLEGED MISCONDUCT

OF GREATER CONCERN TO MR MOZER IS THE POSSIBILITY THAT HE WILL FACE
CRIMINAL CHARGES FOR THE ANTITRUST VIOLATIONS A GRAND JURY IN NEW YORK IS
LOOKING INTO TREASURY BIDS IN AUCTIONS IN APRIL AND MAY OF 1991 ACCORDING
TO PEOPLE FAMILIAR WITH THE INVESTIGATION HAYS GOREY THE JUSTICE
DEPARTMENT OFFICIAL OVERSEEING THAT INVESTIGATION HAS SAID THAT ANY PLEA
AGREEMENT WITH THE US ATTORNEY'S OFFICE IN NEW YORK WON'T FREE MR MOZER
FROM THE POSSIBILITY OF BEING INDICTED BY THAT GRAND JURY

MR ARKIN HAS MAINTAINED THAT MR MOZER COOPERATED WITH FEDERAL PROSECUTORS
INCLUDING THOSE IN THE ANTITRUST CASE ON THE UNDERSTANDING THAT HIS PLEA TO
TWO FELONIES WOULD COVER ALL HIS BASES THAT DISAGREEMENT HAS HELD UP THE
PLEA PROCESS IT WAS RESOLVED BY HAVING THE PLEA AGREEMENT STATE THAT
PROSECUTORS BELIEVED THAT MR MOZER DIDN'T GET PROTECTION FROM ANTITRUST
CHARGES BUT THAT MR MOZER BELIEVED HE DID

THE GOVERNMENT ALSO HAS AGREED TO TELL THE SENTENCING JUDGE THAT MR MOZER
PROVIDED SUBSTANTIAL ASSISTANCE TO FEDERAL PROSECUTORS INVESTIGATING
SALOMON SUCH A FINDING WILL ALLOW THE JUDGE TO GIVE MR MOZER ADDITIONAL
CREDIT WHEN IT COMES TO DETERMINING THE SENTENCE

THE US ATTORNEY'S OFFICE IS EXPECTED TO FILE A CRIMINAL INFORMATION 
TYPICALLY USED INSTEAD OF AN INDICTMENT WHEN A DEFENDANT PLANS TO PLEAD
GUILTY THAT ALSO WILL INCLUDE A SECTION DESCRIBING MR MOZER'S ALLEGED
SCHEME TO COVER UP HIS FALSE BIDS INDIVIDUALS FAMILIAR WITH THE CASE SAY
THAT THIS SECTION HAS ALSO DELAYED THE PLEA PROCESS BECAUSE MR MOZER'S
AGREEMENT WITH THE GOVERNMENT SPECIFICALLY EXCLUDED A CHARGE OF OBSTRUCTION
OF JUSTICE FOR SUCH AN ALLEGED COVERUP

HOWARD HEISS THE ASSISTANT US ATTORNEY IN NEW YORK WHO HANDLES CRIMINAL
SECURITIES MATTERS DECLINED TO COMMENT

A CALIFORNIA APPEALS COURT LET STAND A RULING THAT OUTOFSTATE HEARTVALVE
RECIPIENTS CAN SUE PFIZER INC IN CALIFORNIA COURTS

PFIZER LAST YEAR REACHED SETTLEMENTS WITH MORE THAN 51000 HEARTVALVE
RECIPIENTS WHO SUED OVER THE PRODUCT WHICH HAS BEEN FOUND TO FRACTURE BUT
ABOUT 225 RECIPIENTS FROM OUTSIDE CALIFORNIA ARE PURSUING INDIVIDUAL CLAIMS
AGAINST PFIZER AND ITS IRVINE CALIF UNIT SHILEY INC WHICH MADE THE
BJORKSHILEY HEART VALVES

IN NOVEMBER A TRIAL JUDGE RULED THAT OUTOFSTATE RECIPIENTS COULD SUE IN
CALIFORNIA COURTS A BOON FOR PLAINTIFFS BECAUSE CALIFORNIA IS THE ONLY
STATE TO ALLOW RECIPIENTS OF FUNCTIONING HEART VALVES TO BRING CLAIMS
ALLEGING FRAUD OTHER STATES HAVE REQUIRED EVIDENCE OF A DEFECT BEFORE A
PRODUCTLIABILITY CLAIM IS FILED

AN INTERMEDIATE APPEALS COURT REJECTED PFIZER'S REQUEST THAT IT REVIEW THE
TRIAL JUDGE'S RULING PFIZER SAID IT NOW WILL ASK THE CALIFORNIA SUPREME
COURT TO OVERTURN THE DECISION WHICH THE COMPANY SAYS CONFLICTS WITH A
PREVIOUS RULING BY THE STATE'S HIGH COURT PFIZER SAID IT BELIEVES THE
CLAIMS FILED BY PEOPLE WITH FUNCTIONING HEART VALVES ARE BASELESS

WHO'S NEWS ROBERT S MUELLER ASSISTANT US ATTORNEY GENERAL IN CHARGE OF
THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION WILL JOIN BOSTON LAW FIRM HALE &
DORR AS A PARTNER MR MUELLER WHO WILL FOCUS ON WHITECOLLAR CRIME CASES
WILL PRACTICE IN THE FIRM'S BOSTON AND WASHINGTON OFFICES

PROSECUTORIAL MOVE MARVIN COLLINS THE US ATTORNEY IN DALLAS SAID HE
WILL RESIGN JAN 19 TO BECOME CHIEF OF THE CIVIL DIVISION IN THE TARRANT
COUNTY DISTRICT ATTORNEY'S OFFICE FORT WORTH TEXAS MR COLLINS 50 YEARS
OLD PLAYED A PROMINENT ROLE IN PROSECUTING SAVINGSANDLOAN FRAUD CASES
INCLUDING THE INVESTIGATION OF SILVERADO BANKING SAVINGS & LOAN
ASSOCIATION A FAILED DENVER THRIFT WHOSE DIRECTORS INCLUDED NEIL BUSH
PRESIDENT BUSH'S SON

HURRICANE ARBITRATORS AMERICAN ARBITRATION ASSOCIATION WAS SELECTED TO
ADMINISTER A FLORIDA PROGRAM TO HELP SETTLE HOMEOWNERS' INSURANCE CLAIMS
STEMMING FROM HURRICANE ANDREW THE FLORIDA DEPARTMENT OF INSURANCE SET UP
THE MEDIATION PROGRAM IN HOMESTEAD FLA HARD HIT BY THE HURRICANE IN
AUGUST 9301070090 930107 SOFTWARE NETWORK VIDEOGAME INNOVATOR LURES
CORPORATE GIANTS TO INTERACTIVE' MEDIA  TRIP HAWKINS SIGNS UP MCA
 AT&T AND TIME WARNER TO SUPPORT HIS STANDARD  PERSUASIVE SPIEL BY
SPIELBERG  BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET
JOURNAL

HOLLYWOOD BEFORE A HUGE ASSEMBLY AT THE CONSUMER ELECTRONICS SHOW IN LAS
VEGAS TODAY IS SHOWTIME FOR TRIP HAWKINS

THE 39YEAROLD SILICON VALLEY ENTREPRENEUR IS KNOWN AS A SKILLED EVEN
MESSIANIC SALESMAN AND THE HYPE WILL NO DOUBT BE FIERCE BUT BEHIND THE
THEATER IS A REMARKABLE TALE OF CORPORATE DIPLOMACY THAT MAY IN THE END
HAVE A DECISIVE IMPACT ON THE WORLDWIDE CHASE FOR THAT TECHNOLOGICAL GOLDEN
FLEECE DIGITAL INTERACTIVE VIDEO

OVER THE PAST THREE YEARS MR HAWKINS HAS ASSEMBLED A DELICATE COALITION
FROM THE VASTLY DIFFERENT CULTURES OF SILICON VALLEY JAPAN AND PERHAPS
MOST IMPORTANT HOLLYWOOD HE HAS PERSUADED SOME OF THE WORLD'S MAJOR
POWERS IN MEDIA AND CONSUMER ELECTRONICS TO BET ON HIM AND HIS 3DO CO AT A
TIME WHEN INTERACTIVITY SEEMS NO LONGER TO BE A TECHNOLOGIST'S FANTASY BUT
AN IMMINENT GIGANTIC MARKET

YOU JUST PUSH THROUGH THE NONBELIEVERS MR HAWKINS SAYS I FIGURE THE
OBSTACLES BEHIND ME ARE IN FRONT OF EVERYBODY ELSE I KEEP TELLING MYSELF
THEY'LL HAVE TO PUT UP WITH ALL THE GRIEF I DID SO I MUST BE ALONE OUT
HERE

MR HAWKINS'S GOAL IS TO ESTABLISH A WORLDWIDE STANDARD FOR INTERACTIVITY
AND TO PUT A BOX IN EVERY HOME TO MANAGE TV AND CABLE CHANNELS TO PLAY
GAMES DO SHOPPING LEARN ABOUT THE WORLD LISTEN TO MUSIC WATCH MOVIES AND
EDIT FAMILY VIDEOTAPES WHILE HIS COMPANY'S NAME STANDS FOR
THREEDIMENSIONAL OPTICS IT'S ALSO MEANT TO IMPLY A PROGRESSION FROM
AUDIO TO VIDEO TO 3DO

THE DEVICE TO BE INTRODUCED TODAY IS A HIGHPOWERED HOME ENTERTAINMENT
SYSTEM BASED ON COMPACT DISKS BIGGER THAN A CD PLAYER BUT SMALLER THAN A
VCR THAT HOOKS UP TO A TELEVISION SET INITIALLY IT WILL BE PRICED AT ABOUT
700 AND PLAY GAME AND EDUCATIONAL SOFTWARE MUSIC COMPACT DISKS AND PHOTO
CDS FUTURE ATTACHMENTS WILL ENABLE IT TO SHOW MOVIES EDIT VIDEOTAPE PLAY
MUSICAL INSTRUMENTS AND RECEIVE CABLE TV PURPORTING TO PROVIDE MORE COLOR
HIGHER SPEED AND BETTER GRAPHICS THAN OTHER GAME MACHINES AND PERSONAL
COMPUTERS THE FIRST MULTIPLAYERS WILL GO TO MARKET THIS FALL ACCOMPANIED
BY SEVERAL DOZEN SOFTWARE TITLES

MAJOR COMPETITORS CIRCLE MENACINGLY HOWEVER ALL INTENT ON THE SAME PRIZE
HIS EYES GLINTING WITH MISSIONARY ZEAL MR HAWKINS GRABS A PIECE OF CHALK
TO DESCRIBE THE FIELD OVER HERE HE SAYS DRAWING A SQUARE IS THE
CHILDREN'S BEDROOM HE WRITES DOWN THE NAMES OF NINTENDO LTD AND SEGA
ENTERPRISES LTD THE JAPANESE VIDEOGAME GIANTS THEY'RE IN THERE NEXT
HE SCRAWLS THE NAMES OF APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES
CORP AND MICROSOFT CORP AND PUTS THEM IN A SQUARE HE LABELS THE DEN OR
HOME OFFICE FINALLY HE DRAWS A SQUARE IN THE MIDDLE CONNECTING THE OTHER
TWO THIS IS THE LIVING ROOM THAT'S WHERE EVERYBODY WANTS TO BE

UNLIKE MR HAWKINS HIS COMPETITORS ALREADY ARE IN THE HOUSE THE GAME
MAKERS SEGA AND NINTENDO HAVE THE ADVANTAGE OF AN INSTALLED BASE OF MORE
THAN 40 MILLION GAME MACHINES IN THE US ALL THEY NEED TO DO THEY ARGUE
IS TO KEEP UPGRADING THEIR PRODUCTS

SEGA HAS STARTED MARKETING A 300 COMPACT DISK ADDON AND IT SOLD WELL AT
CHRISTMAS NINTENDO A SWORN ENEMY OF 3DO IS ALSO READYING A CD ADDON AND
RELISHING THE CHANCE TO TRUMP TODAY'S 3DO ANNOUNCEMENT WITH ITS OWN
INTRODUCTION A SUPER FX CHIP THAT PERFORMS SOME OF THE FUNCTIONS 3DO
BOASTS ABOUT AND RATHER THAN COSTING 700 IT COMES WITH A 60 GAME
CARTRIDGE

APPLE AND IBM HAVE A VENTURE CALLED KALEIDA TO MARKET A CDBASED FORMAT
THAT RUNS ON PERSONAL COMPUTERS SO DOES MICROSOFT AND ITS MPC FORMAT IS
SELLING WELL SONY CORP HAS THREE CDBASED FORMATS ON THE MARKET INCLUDING
ITS DATA DISCMAN THREE OTHER COMPETITORS WHOSE PRODUCTS HOOK UP TO TV
SCREENS ARE IN STORES ALREADY COMMODORE INTERNATIONAL INC HAS CDTV TANDY
CORP HAS VIS AND PHILIPS ELECTRONICS NV HAS COMPACT DISK INTERACTIVE OR
CDI NONE IS SETTING THE WORLD ON FIRE AND THEY AREN'T COMPATIBLE WITH ONE
ANOTHER BUT THEY'RE IN THE GAME

STILL MR HAWKINS'S PLANS ARE MORE THAN WISHFUL THINKING TO HELP ESTABLISH
HIS BEACHHEAD HE HAS WOOED AND WON AS PARTNERS THE WORLD'S LARGEST MAKER OF
CONSUMER ELECTRONIC HARDWARE JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO
WHICH OWNS MCA INC AND ITS UNIVERSAL STUDIOS UNIT AND THE LARGEST MAKER OF
MEDIA ENTERTAINMENT SOFTWARE TIME WARNER INC TODAY 3DO WILL ANNOUNCE A
NEW PARTNER THE WORLD'S LARGEST COMMUNICATIONS COMPANY AMERICAN TELEPHONE
& TELEGRAPH CO ALONG WITH THE SILICON VALLEY'S MOST SUCCESSFUL VENTURE
CAPITAL FIRM KLEINER PERKINS CAUFIELD & BYERS AND MR HAWKINS'S OWN
ELECTRONIC ARTS INC A MAJOR VIDEOGAME SOFTWARE PRODUCER IT'S A DREAM
TEAM

MR HAWKINS FORMED A UNIT WITHIN ELECTRONIC ARTS TO DEVELOP A NEW FORMAT
THIS UNIT EVENTUALLY SPLIT OFF AND BECAME 3DO UNABLE TO FIND SOMEONE TO RUN
3DO FOR HIM HE DECIDED TO DO THE JOB HIMSELF STEPPING DOWN AS CHIEF
EXECUTIVE OF ELECTRONIC ARTS HE REMAINS ITS CHAIRMAN

AS HE THOUGHT ABOUT THE NEXT GENERATION OF INTERACTIVE GAME SYSTEMS MR
HAWKINS SAW A KEY FAILURE COMMON TO EXISTING ONES EXCEPT FOR SOME LICENSING
DEALS HOLLYWOOD HOME OF THE BEST COMMERCIAL STORYTELLERS IN THE WORLD WAS
OUT OF THE LOOP

PART OF THE PROBLEM WAS HOLLYWOOD'S OWN COMPLACENCY FORMER FOX INC
CHAIRMAN AND INTERACTIVECONVERT BARRY DILLER WHO SPENT A DAY AT 3DO LAST
YEAR SAYS MANY MOVIE EXECUTIVES ARE UNINTERESTED IN THE FUTURE ADDS
ANOTHER HOLLYWOOD EXECUTIVE SILICON VALLEY IS ABOUT ENTREPRENEURSHIP
MAKING BETS TAKING RISKS HOLLYWOOD IS ABOUT PLAYING THE FIELD TAKING YOUR
10

STILL EVERYONE IN HOLLYWOOD IS TALKING ABOUT INTERACTIVE MULTIMEDIA THE
MOVIE STUDIOS WANT TO PUT THEIR FILMS ON FIVEINCH COMPACT DISKS THEY'RE
CHEAPER TO PRODUCE THAN LASER OR EVEN TAPES ARE MORE RESISTANT TO PIRACY
AND WOULD PROVIDE A FINANCIAL WINDFALL BUT THE TECHNOLOGY FOR VIDEO
COMPRESSION IS AT LEAST A YEAR AWAY WHEN MOVIES CAN GO ON A DISK IT WILL
RELEASE A PENTUP DEMAND FOR ALREADY EXISTING COPYRIGHTS SAYS STAN CORNYN
EXCHIEF OF WARNER'S NEW MEDIA UNIT

TIME WARNER WAS AN OBVIOUS POTENTIAL PARTNER MR HAWKINS THOUGHT BESIDES
BEING THE NATION'S SECONDLARGEST CABLE OPERATOR IT HAS A HUGE MUSIC
PUBLISHING VAULT AND A TV AND FILM LIBRARY PLUS TIME LIFE'S VALUABLE
EDUCATIONAL FILMS IT WAS ANXIOUS FOR A NEW INTERACTIVE STANDARD WE'VE GOT
THE BIG TRUCK SAYS TIME WARNER EXECUTIVE BOB PITTMAN CREATOR OF MTV AND A
DIRECTOR OF ELECTRONIC ARTS WE JUST NEED SOMEONE TO BUILD AN INTERSTATE
HIGHWAY

MR PITTMAN TOLD MR HAWKINS THAT HE THOUGHT TIME WARNER COULD BE WON OVER
ITS LATE CHAIRMAN STEVEN ROSS WAS FASCINATED BY INTERACTIVITY AND VISITED
3DO'S HEADQUARTERS IN SAN MATEO CALIF

BUT TIME WARNER WAS TO PROVE A HARD SELL MR ROSS HAD ALWAYS ENCOURAGED A
DECENTRALIZED STRUCTURE AND THE COMPANY HAD NO LESS THAN FOUR DIFFERENT
DIVISIONS WORKING ON INTERACTIVITY INCLUDING ATARI AND A HOLLYWOODBASED
NEW MEDIA GROUP

TIME WARNER HAS INDEPENDENT LORDSHIPS SAYS MR HAWKINS AND EACH LORD
DOESN'T WANT TO LOOK BAD TO THE OTHER LORDS IT'S CLASSIC CORPORATE
RISKAVERSION

WORSE TIME WARNER WAS DESPERATELY TRYING TO ALLEVIATE ITS DEBT PROBLEMS BY
SELLING A STAKE TO TOSHIBA A TRANSACTION THAT WAS TO TOTAL ABOUT 500
MILLION TIME WARNER WORRIED THAT TOSHIBA WOULDN'T WANT TO BE IN BUSINESS
WITH MATSUSHITA A MAJOR RIVAL WARNER WAS ALSO CONCERNED ABOUT ALIENATING
OTHER POTENTIAL PARTNERS LIKE IBM WITH WHOM IT DISCUSSED A CABLE VENTURE

MEANWHILE 3DO'S LARGEST SHAREHOLDER ELECTRONIC ARTS WAS GETTING NERVOUS
ABOUT ITS INVESTMENT ELECTRONIC ARTS WAS A HOT VOLATILE WALL STREET STOCK
AND 3DO WAS A BIG QUESTION MARK ON THE BALANCE SHEET MR HAWKINS KNEW HE
NEEDED TO GET AT LEAST ONE PARTNER IN THE DOOR QUICKLY SO HE TRIED TO PLAY
OFF TIME WARNER AGAINST KLEINER PERKINS WHICH WAS TRYING TO BREAK THE DOOR
DOWN HE WANTED THE VENTURECAPITAL FIRM ON BOARD TO PROVIDE AN INVESTOR
WHOSE ONLY CONCERN WAS 3DO'S SUCCESS NOT THE INTERESTS OF ANY OTHER
PARTIES

HE GAVE THEM BOTH A DEADLINE AT ONE POINT MR PITTMAN HAD TO GET FINAL
APPROVAL FROM MR ROSS ABOARD HIS BOAT IN NEW YORK HARBOR AND CALLED JUST A
FEW MINUTES AFTER KLEINER PERKINS BUT AFTER FURTHER TALKS BOTH COMPANIES
SIGNED ON AS PARTNERS AND HELPED CAPITALIZE 3DO AT 20 MILLION

THE CONSERVATIVE GIANT MATSUSHITA HAD MOVED EVEN MORE QUICKLY BUT SETTING
UP THAT ARRANGEMENT CAME WITH ITS OWN SET OF CHALLENGES

IN 1990 MATSUSHITA FOLLOWED ARCHRIVAL SONY'S LEAD AND BOUGHT A STUDIO MCA
FOR MORE THAN 6 BILLION THE JAPANESE LIKE TO USE THE WORD SOFTWARE IN
DESCRIBING HOLLYWOOD AND THEY WANTED MCA'S MOVIE STUDIO AND MUSIC BUSINESS
TO HELP INTRODUCE THEIR OWN HARDWARE PRODUCTS

BUT MATSUSHITA HIT POTHOLES ALMOST IMMEDIATELY AFTER THE DEAL MA HAD TWO
ROUGH YEARS IN A ROW AND MATSUSHITA BADLY NEEDED SOMETHING TO PROVE ITS
ACQUISITION HAD MADE SENSE SOME EXAMPLE OF SYNERGY MR HAWKINS KNEW SKIP
PAUL A LOWPROFILE BUT POWERFUL EXECUTIVE AT MCA WHO HAD WORKED AT ATARI
MR PAUL HAD RELISHED THE ENTREPRENEURIAL VITALITY OF THE VIDEOGAME
BUSINESS AND WAS ALWAYS STRUCK WITH HOW 12YEAROLD CHILDREN RELATED TO
COMPUTERS AND GAMES IN A WHOLE NEW WAY THEY WEREN'T INTIMIDATED WHILE
RUNNING MORE CONVENTIONAL BUSINESSES LIKE MCA'S INVESTMENTS IN MOVIE
THEATERS HE'D ALWAYS THOUGHT MCA HAD A POTENTIAL ROLE IN VIDEO GAMES

HE WAS ALSO A KEY LINK TO THE JAPANESE AND TOLD MR HAWKINS THAT HE SHOULD
TALK TO TSUZO MURASE MATSUSHITA'S HEAD OF MANUFACTURING A VETERAN OF THE
VHS/BETA WARS WITH SONY MR MURASE KNEW ABOUT THE IMPORTANCE OF
ESTABLISHING A SINGLE STANDARD THE THREE MET THEN MR MURASE ASKED MR
HAWKINS TO LEAVE THE ROOM HE TURNED TO MR PAUL WHO IS THIS TRIP HAWKINS
WHAT DO YOU THINK OF HIM HE ASKED MR PAUL SAYS MR MURASE UNDERSTOOD
THAT IN AMERICAN ENTREPRENEURIAL VENTURES YOU BET ON PEOPLE MR MURASE
DECIDED TO SPONSOR MR HAWKINS'S CAUSE THIS WAS A KEY CONTACT THAT PUT 3DO
OUTSIDE MCA'S USUAL CHANNEL OF REPORTING TO THE COMPANY'S ENTERTAINMENT
ARTS UNIT AND HELPED IT DEAL MORE DIRECTLY WITH HEADQUARTERS IN OSAKA

A KEY PRESENTATION TOOK PLACE LAST SPRING WHEN MESSRS PAUL AND HAWKINS
FLEW TO OSAKA FOR A DEMONSTRATION BEFORE COMPANY PRESIDENT AKIO TANII AND
CHAIRMAN MASAHARU MATSUSHITA IT WAS THE FIRST TIME MR MATSUSHITA HAD
VISITED THIS PARTICULAR HUGE FACTORY AND IT WAS THE KIND OF OCCASION WHERE
WORKERS STOOD OUTSIDE THE PLANT IN WHITE GLOVES AWAITING THE ARRIVAL OF THE
LIMOUSINES

THE NEGOTIATIONS HAD BEEN GOING WELL BUT MATSUSHITA EXECUTIVES WERE CLEARLY
NERVOUS ALL OF A SUDDEN EXECUTIVES WHO HAD SHOWED A HUGE AMOUNT OF
EXCITEMENT WERE STARTING TO BACK OFF RECALLS MR HAWKINS IT WAS CLEAR
THAT IF ANY LITTLE THING WENT AWRY IN FRONT OF THOSE GUYS HEADS WERE GOING
TO ROLL

BUT MR PAUL HAD A SECRET WEAPON IN HIS BRIEFCASE THE DAY BEFORE THE TRIP
STEVEN SPIELBERG WAS CAJOLED INTO TAPING A GREETING TO THE JAPANESE
EXECUTIVES BUT THE DIRECTOR INSISTED THAT THE TAPE NOT BE PASSED AROUND OR
COPIED AND MR PAUL PLAYED THIS BIT OF DRAMA TO THE HILT

THE TAPE WAS CUED KONNICHI WA OPENED MR SPIELBERG GOING ON TO CALL 3DO
THE BREAKTHROUGH OF BREAKTHROUGHS HE SAID IF YOU HAVE FLYING DREAMS
YOU CAN STOP DREAMING BECAUSE THIS PRODUCT WILL ALLOW YOU TO FLY MR
SPIELBERG MAY NOT BE THE TYPICAL CONSUMER HE SPENDS HOURS PLAYING
FLIGHTSIMULATOR GAMES BUT HE IS REVERED IN JAPAN THE PRESENTATION WAS A
SUCCESS AND THE DAY AFTER HE TAPED THE ENDORSEMENT MR SPIELBERG WENT TO
HAWAII TO BEGIN FILMING JURASSIC PARK A SUMMER UNIVERSAL RELEASE AND A
KEY SOFTWARE TITLE FOR 3DO

MATSUSHITA HAD OTHER CONCERNS IT WAS NERVOUS ABOUT ITS RELATIONSHIP WITH
PHILIPS WITH WHICH IT WAS WORKING ON DIGITAL COMPACT DISKS WOULD A 3DO
LINK ANGER THE PRODUCERS OF CDI THERE WAS ALSO A PHILOSOPHICAL PROBLEM
MATSUSHITA KEPT BALKING AT THE IDEA OF BEING A PASSIVE EQUITY INVESTOR WE
DON'T MAKE INVESTMENTS WE MAKE PRODUCTS EXECUTIVES KEPT SAYING

EVENTUALLY MR HAWKINS GAVE SO MANY PRESENTATIONS TO JAPANESE EXECUTIVES 
HE FIGURES ABOUT 500 MATSUSHITA EMPLOYEES HAVE PASSED THROUGH 3DO'S
HEADQUARTERS THAT HE COULD LOOK AT ANY OF 50 JAPANESELANGUAGE SLIDES
AND EVEN IF THEY WERE OUT OF ORDER KNOW WHERE HE WAS IN HIS SPIEL BUT
MATSUSHITA CAME ABOARD AND ITS PANASONIC LINE WILL PRODUCE THE FIRST
LICENSED HARDWARE

LAST TO COME ABOARD WAS AT&T WHICH IS LIKELY TO MANUFACTURE SOME OF THE 3DO
MACHINES ALONG WITH MATSUSHITA THE COMPANY GIANT ALREADY HAS A RELATIONSHIP
WITH TELECOMMUNICATIONS INC THE LEADER IN THE CABLETV FIELD WHICH HAS
PROMISED TO HAVE 500 CHANNEL SYSTEMS IN A MILLION HOMES AS SOON AS TWO YEARS
FROM NOW

AFTER TODAY'S OFFICIAL INTRODUCTION MR HAWKINS KNOWS THAT 3DO MUST COME
OUT OF THE CHUTE QUICKLY YOU ONLY GET A SHORT TIME UP ON STAGE HE SAYS
AFTER 3DO TRIES TO ATTRACT AN INITIAL 500000 HARDCORE SUPPOSEDLY
PRICEINSENSITIVE USERS IT WILL TARGET SOME FIVE MILLION EARLY ADOPTERS
WHO ARE AFFLUENT ENOUGH TO PAY FOR A MACHINE WITH PERFORMANCE AND MULTIPLE
USES BY THIS TIME ECONOMIES OF SCALE COULD BRING THE PRICE DOWN TO 500

BUT SINCE MOST CONSUMERS ALREADY HAVE A CD PLAYER AND THERE ARE PERFECTLY
DECENT GAME MACHINES FOR UNDER 100 3DO WILL HAVE TO CONVINCE A LOT MORE
ADULTS THAT HIGHTECH GAME PLAYING IS A GREAT WAY TO SPEND LEISURE TIME

MR HAWKINS NOTES THAT KIDS WHO CUT THEIR TEETH ON PONG ARE NOW IN THEIR
20S AND 30S AND GAMES LIKE ELECTRONIC ARTS'S JOHN MADDEN FOOTBALL APPEAL
TO YUPPIES

THERE'S STILL A DEBATE ABOUT WHETHER A MARKET REALLY EXISTS FOR INTERACTIVE
MOVIES DO PEOPLE TRULY WANT TO CHOOSE THEIR OWN ENDINGS FOR FILMS
LISTENING TO STORIES HAS BEEN PASSIVE SINCE CAVEMEN FIRST HUDDLED AROUND
BONFIRES AND MANY IN HOLLYWOOD SCOFF

TYPICALLY THOUGH MR HAWKINS IS A BELIEVER THEY SAID THAT IN HOMER'S
TIME TOO HE SAYS PEOPLE ARE ALWAYS LOOKING FOR MORE EXCITING WAYS TO BE
INVOLVED IN A STORY AND NOW IS NOT THE TIME TO STOP 9301070089 930107
UNITED AIRLINES PLANS LAYOFFS TO TRIM COSTS  CARRIER SAYS 2800
WILL LOSE JOBS PAY WILL BE CUT TO SAVE 400 MILLION  BY ROBERT
L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO UNITED AIRLINES SAID IT WILL LAY OFF 2800 WORKERS AND CANCEL
PLANS TO HIRE ANOTHER 1900 AS PART OF AN EFFORT TO SLASH ITS ANNUAL
EXPENSES 400 MILLION

CITING THE CHAOTIC ENVIRONMENT IN THE LOSSPLAGUED INDUSTRY THE NATION'S
SECONDLARGEST AIRLINE ALSO SAID IT WILL CUT THE PAY OF ITS OFFICERS AND
MANAGEMENT BY 5 AND THAT ITS DIRECTORS WILL TAKE A 10 PAY CUT

CHAIRMAN STEPHEN WOLF WHO IN THE PAST HAS RANKED AMONG THE NATION'S HIGHEST
PAID EXECUTIVES WILL CUT HIS BASE PAY BY 15 OR 100000 A SPOKESMAN
SAID WHILE MR WOLF EARNED A RELATIVELY MODEST 575000 IN 1991 HIS
COMPENSATION IN 1990 WAS 183 MILLION INCLUDING THE EXERCISE OF STOCK
OPTIONS

THE CUTBACKS ADD UP THE SHARPEST YET IN THE INDUSTRY AS THE NATION'S MAJOR
AIRLINES GRAPPLE WITH A SLOW ECONOMY STIFF COMPETITION AND HIGH COSTS FROM
THEIR PREVIOUS SPLURGE ON NEW AIRCRAFT

WITHIN HOURS OF THE ANNOUNCEMENT MR WOLF ASKED PRESIDENTELECT CLINTON TO
CONVENE A NATIONAL COMMISSION TO EXAMINE THE PROBLEMS OF THE AIRLINE
INDUSTRY

IN A LETTER TO MR CLINTON MR WOLF CONTENDED THE INDUSTRY IS IN SERIOUS
TROUBLE THE TROUBLES HE SAID ARE CAUSED BY THE PROLONGED OPERATIONS OF
SOME AIRLINES UNDER BANKRUPTCYLAW PROTECTION TRADE BARRIERS TO US
CARRIERS ABROAD AND AN OUTDATED AIR TRANSPORTATION INFRASTRUCTURE

THE NATIONAL INVESTMENT IN THIS STRATEGIC INDUSTRY IS NOW AT SERIOUS RISK
MR WOLF WROTE WHICH HAS DANGEROUS IMPLICATIONS FOR OUR ECONOMY AND OUR
INTERNATIONAL COMPETITIVENESS

THE EXECUTIVE DIDN'T ELABORATE ON THE PROBLEMS BUT HE HAS LONG COMPLAINED
THAT CARRIERS IN BANKRUPTCY HURT HEALTHIER AIRLINES WITH UNFAIR
PRICECUTTING HE ALSO PRESUMABLY WANTS MORE SPENDING FOR ITEMS SUCH AS NEW
RUNWAYS AND BETTER WAYS OF CONTROLLING AIR TRAFFIC

MR WOLF WHO IS ALSO CHAIRMAN AND CHIEF EXECUTIVE OF UNITED'S PARENT UAL
CORP WAS ONE OF THE PARTICIPANTS IN MR CLINTON'S ECONOMIC CONFERENCE IN
LITTLE ROCK ARK LAST MONTH

UNITED SAID MR WOLF IS ASKING MR CLINTON TO CONSULT WITH HIS NEW
TRANSPORTATION SECRETARY AND APPOINT TO THE COMMISSION EXPERTS FROM SEVERAL
DISCIPLINES TO EXAMINE THE FACTORS UNDERMINING THE VIABILITY OF THE US AIR
TRANSPORTATION INDUSTRY

WHILE IT'S FAR FROM CLEAR WHAT IF ANYTHING THE GOVERNMENT CAN DO TO BRING
QUICK RELIEF TRANSPORTATION SECRETARYDESIGNATE FEDERICO PENA SAID IN AN
INTERVIEW LAST MONTH THAT A TOP PRIORITY FOR MR CLINTON WILL BE TO FIND
WAYS TO HELP US AIRLINES PULL OUT OF THEIR THREEYEAR TAILSPIN THE FORMER
DENVER MAYOR ALSO SAID HE ENVISIONS MORE OF A PARTNERSHIP WITH US
AIRLINES

UNITED HOPING THAT SALARY CUTS BY ITS MANAGERS AND TOP EXECUTIVES WILL SET
AN EXAMPLE SAID IT WILL ASK ALL OF ITS EMPLOYEES TO PARTICIPATE IN SIMILAR
SACRIFICES BUT THE AIRLINE COULD HAVE TROUBLE GETTING PAY CUTS OR EVEN PAY
FREEZES FROM UNIONS REPRESENTING ITS GROUND EMPLOYEES FLIGHT ATTENDANTS AND
PILOTS

EACH OF THOSE UNIONS REPRESENTING SOME 54000 OF UNITED'S 83000 WORKERS
SIGNED MULTIYEAR CONTRACTS WITH THE COMPANY IN 1991 REPRESENTATIVES OF THE
UNIONS SAID THEY HADN'T BEEN TOLD AS OF YESTERDAY WHAT SACRIFICES THE
AIRLINE EXPECTS FROM THEM TOP OFFICIALS OF EACH ORGANIZATION WILL MEET WITH
MR WOLF THIS WEEK AND NEXT

WE CAN ONLY SPECULATE HE WANTS THE SAME 5 WAGE CUTS HE WANTS FROM
EVERYBODY ELSE SAID DIANE TUCKER PRESIDENT OF THE ASSOCIATION OF FLIGHT
ATTENDANTS AT UNITED ACCEPTING IT SHE SAID IS DOUBTFUL BUT WE WOULD
HAVE TO SEE THE COMPANY'S FINANCIAL OUTLOOK

OFFICIALS AT THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND THE AIR LINE
PILOTS ASSOCIATION SAID IT'S TOO EARLY TO SAY WHAT THEY WOULD DO

AMONG OTHER STEPS TO CUT COSTS UNITED SAID IT WILL REDUCE ITS DOMESTIC
SCHEDULE AND CANCEL PLANS TO FLY SOME PREVIOUSLY ANNOUNCED INTERNATIONAL
ROUTES IT ALSO SAID IT WILL SPEED UP THE RETIREMENT OF OLDER PLANES
FURTHER REDUCE CAPITAL SPENDING AND CUT OTHER EXPENSES

IN THE FIRST NINE MONTHS OF 1992 UAL POSTED A LOSS OF 1659 MILLION OR
690 A SHARE ON REVENUE OF 969 BILLION THE COMPANY ALSO EXPECTS TO
REPORT A LARGE LOSS FOR ITS FOURTH QUARTER

EARLIER THIS WEEK THE NORTHWEST AIRLINES UNIT OF WINGS HOLDINGS INC SAID
IT WILL LAY OFF 1043 WORKERS LAST MONTH DELTA AIR LINES CUT ITS DIVIDEND
AND ANNOUNCED 5 WAGE CUTS FOR MOST WORKERS AND A 20 CUT IN COMPENSATION
FOR ITS BOARD AMR CORP'S AMERICAN AIRLINES UNIT UNITED'S TOP RIVAL MOVED
IN OCTOBER TO CUT 300 MILLION FROM ITS 1993 EXPENSES 9301070087 930107
INTERNATIONAL AIRTOURS LAUNCHES HOSTILE TAKEOVER BID FOR OWNERS
ABROAD  SPECIAL TO THE WALL STREET JOURNAL

LONDON AIRTOURS PLC LAUNCHED A HOSTILE TAKEOVER BID VALUED AT 237
MILLION 3674 MILLION FOR FELLOW BRITISH TOUR OPERATOR OWNERS ABROAD
GROUP PLC

AIRTOURS SAID OWNERS ABROAD'S PLAN TO SELL 126 OF ITSELF TO THOMAS COOK
WHICH IN TURN IS 86 OWNED BY WESTDEUTSCHE LANDESBANK WAS A POOR DEAL FOR
OWNERS ABROAD SHAREHOLDERS AND PROMISED TO CANCEL THE ARRANGEMENT IF ITS
TAKEOVER IS SUCCESSFUL

OWNERS ABROAD WILL LACK THE OWNERSHIP AND THEREFORE CONTROL NECESSARY FOR
OWNERS ABROAD TO REALIZE ANY BENEFITS FROM A THOMAS COOK LINKUP AIRTOURS
ARGUED

OWNERS ABROAD SAID IT WAS CONSIDERING THE OFFER AND WOULD MAKE A FURTHER
ANNOUNCEMENT AS SOON AS POSSIBLE

AIRTOURS OFFERED TO SWAP THREE OF ITS OWN ORDINARY SHARES FOR EVERY EIGHT
OWNERS ABROAD ORDINARY SHARES GIVING EACH OWNERS ABROAD SHARE A VALUE OF
120 PENCE 186 AIRTOURS ALSO OFFERED TO EXCHANGE 1885 OF ITS OWN
CONVERTIBLE PREFERENCE SHARES FOR EVERY 100 OWNERS ABROAD CONVERTIBLE
PREFERENCE SHARES VALUING THE OWNERS ABROAD PREFERENCE SHARES AT 207 PENCE
APIECE

AIRTOURS AND OWNERS ABROAD ARE THE SECOND AND THIRD LARGEST TOUR OPERATORS
IN BRITAIN RESPECTIVELY AFTER THOMSON HOLIDAYS A PRIVATE COMPANY

AIRTOURS SAID ITS ORDINARYSHARE OFFER REPRESENTED A 102 PREMIUM OVER
OWNERS ABROAD'S SHARE PRICE OF 595 PENCE ON SEPT 29 1992 THE DAY BEFORE
IT SAID SPECULATION ABOUT AN AIRTOURS BID FOR OWNERS ABROAD FIRST APPEARED
IN THE BRITISH PRESS

AIRTOURS SAID IT WAS ISSUING NEW CONVERTIBLE PREFERENCE SHARES TO RAISE
495 MILLION NET OF EXPENSES

AIRTOURS PROFIT ROSE 33 TO 365 MILLION IN THE YEAR ENDED SEPT

OWNERS ABROAD'S PRETAX PROFIT FELL 19 IN THE FISCAL YEAR ENDED OCT 31
1992 TO 255 MILLION 9301070086 930107 MISSING OLDSMOBILE NAME ON
EXTERIOR OF CAR IS SIGNAL OF CHANGES AT DIVISION  BY JOSEPH B
WHITE STAFF REPORTER OF THE WALL STREET JOURNAL

DETROIT WHEN THE NEWEST CAR FROM GENERAL MOTORS CORP'S OLDSMOBILE
DIVISION HITS THE MARKET NEXT YEAR SOMETHING WILL BE MISSING FROM ITS
SMOOTH EXTERIOR THE OLDSMOBILE NAME

THE CAR A LUXURY SEDAN EXPECTED TO BE PRICED AT AROUND 35000 WILL HAVE
ONLY ITS MODEL NAME AURORA ON THE OUTSIDE AFTER TESTS SHOWED
WELLHEELED IMPORT BUYERS DIDN'T WANT AN OLDSMOBILE THE DIVISION
RELEGATED ITS BRAND NAME TO SMALL LETTERS ON THE DASHBOARD

THE NAME GAME WITH THE AURORA IS JUST ONE SIGN OF HOW MUCH THINGS ARE ABOUT
TO CHANGE AT OLDS AS GM TRIES TO REVIVE ITS MOST TROUBLED MARKETING
DIVISION IT SHOWS HOW FAR THE DIVISION HAS TO GO SAYS GENERAL MANAGER JOHN
D ROCK TO PUT HUMPTYDUMPTY BACK TOGETHER AGAIN

IN THIS PROCESS MANY OF OLDSMOBILE'S 3000 DEALERS COULD BE MERGED OR
ELIMINATED OVER THE NEXT THREE TO FIVE YEARS AS COULD SOME OF THE
DIVISION'S CURRENT PRODUCT LINES ALSO ON THE BLOCK IS OLDSMOBILE'S LONGTIME
AD AGENCY LEO BURNETT INC MR ROCK SAID HE EXPECTS TO ANNOUNCE A WINNER IN
THE CONTEST TO SUCCEED BURNETT AS EARLY AS NEXT MONTH

MR ROCK THE GM VICE PRESIDENT WHO TOOK OVER AT OLDS LAST SPRING OFFERED
MORE DETAILS OF HIS PLAN TO REMAKE OLDS IN THE IMAGE OF ITS SISTER GM
DIVISION SATURN DURING A NEWS CONFERENCE AT THE NORTH AMERICAN
INTERNATIONAL AUTO SHOW HERE

MR ROCK SAID OLDSMOBILE'S MISSION FOR THE 1990S IS TO BE THE PLACE SATURN
BUYERS GO WHEN THEY WANT A LARGER MORE LUXURIOUS CAR THE AURORA IS
DESIGNED TO LEAD THAT CHARGE HE SAID MR ROCK DENIED THAT GM PLANS TO
MERGE THE TWO DIVISIONS BUT HE SAID OLDS IS FORGING A CLOSE ALLIANCE WITH
SATURN AS IT RESTRUCTURES ITSELF

OLDSMOBILE SALES IN 1992 SLUMPED TO JUST 436000 VEHICLES LESS THAN HALF
THE LEVEL OF SIX YEARS AGO YOUNG UPPERMIDDLECLASS BUYERS HAVE YAWNED AT
ALL OF THE DIVISION'S RECENT ATTEMPTS TO PRY THEM OUT OF THEIR FORD
TAURUSES HONDA ACCORDS AND JEEP CHEROKEES THIS IS NOT YOUR FATHER'S
OLDSMOBILE WAS A HIGHLY CELEBRATED AD CAMPAIGN BUT DIDN'T STOP THE
DIVISION'S SLIDE

MR ROCK SAID HIS CRUSADE WILL BEGIN IN EARNEST NEXT MONTH WHEN HE PLANS TO
NAME A NEW GOVERNING COUNCIL THAT WILL CONSIST OF EIGHT OLDS DEALERS AND
EIGHT OLDS OFFICIALS THIS GROUP PATTERNED ON A SIMILAR BODY AT SATURN
WILL REVIEW EVERY POLICY WE HAVE INCLUDING PRODUCT PLANS TRAINING
PROGRAMS AND THE NUMBER AND LOCATION OF DEALERS THIS BODY WILL HAVE
DECISIONMAKING POWER MR ROCK SAID

MR ROCK SAID HE WILL ENLIST SATURN VETERANS TO HELP CONVINCE OLDS DEALERS
TO ADOPT THE RIGOROUS CUSTOMER SATISFACTION METHODS USED BY SATURN TO WIN
RAVE REVIEWS FROM BUYERS OF ITS SMALL CARS

WE WANT OLDS TO REPRESENT A LEVEL OF SERVICE HE SAID ANOTHER ROLE MODEL
HE SAID IS MCDONALD'S WHEN YOU SAY MCDONALD'S YOU KNOW HOW THE FRENCH
FRIES WILL TASTE AND HOW FAST YOU'LL GET THEM

AS PART OF THIS EFFORT MR ROCK HINTED THAT OLDS IS CONSIDERING PLANS TO
RENOVATE RELOCATE OR EVEN ELIMINATE SOME DEALERSHIPS PARTICULARLY THE 600
LOCATED IN 159 MAJOR METROPOLITAN AREAS MANY OF THESE DEALERS AREN'T
PROFITABLE NOW BECAUSE THEY MUST FIGHT WITH NEARBY OLDS DEALERS FOR A PIECE
OF A SIGNIFICANTLY SMALLER PIE

GM HAS AN OVERALL PLAN TO REDUCE ITS CURRENT ARRAY OF 9000 DEALERSHIPS TO
ABOUT 7000 BEFORE THE YEAR 2000 COMPANY OFFICIALS WON'T SAY HOW MANY OF
THOSE DEALERSHIPS WILL BE OLDS SHOWROOMS MOST ANALYSTS HOWEVER SAY OLDS
CLEARLY HAS TOO MANY DEALERS GIVEN ITS DIMINISHED SALES

AS FOR PRODUCT MR ROCK SAID IT IS LIKELY THAT OLDS WILL CONSOLIDATE OR
ELIMINATE AT LEAST TWO OF ITS CURRENT CAR MODEL LINES A REPLACEMENT FOR
OLDSMOBILE'S SPORT UTILITY VEHICLE THE BRAVADA COULD COME FROM ANOTHER
MANUFACTURER SUCH AS GM AFFILIATE ISUZU MOTORS LTD HE SAID 9301070085
930107 WHAT'S NEWS  WORLDWIDE

THE US AND ITS ALLIES ISSUED AN ULTIMATUM TO IRAQ ON ITS MISSILES

THE DEMAND DELIVERED TO IRAQ'S UN AMBASSADOR GIVES BAGHDAD 48 HOURS TO
REMOVE ANTIAIRCRAFT MISSILES FROM SOUTHERN IRAQ WHICH IS PATROLLED BY US
PLANES AND BARRED TO IRAQI AIRCRAFT BRITAIN FRANCE AND RUSSIA JOINED THE
US IN ISSUING THE ULTIMATUM AND US OFFICIALS SAID IT IS PRIVATELY
BACKED BY SAUDI ARABIA AND KUWAIT THE WARNING PUTS IRAQ ON NOTICE THAT ITS
ANTIAIRCRAFT MISSILE SITES COULD BE BOMBED BEGINNING TOMORROW NIGHT IF THE
WEAPONS AREN'T REMOVED

IRAQI LEADER SADDAM HUSSEIN IN A RAMBLING SPEECH MARKING ARMY DAY SAID HIS
TROOPS WERE READY TO DEFEND THEIR NATION'S DIGNITY HE ALSO SEEMED TO URGE
ARAB STATES TO RALLY BEHIND HIM

MINNESOTA REP MARTIN SABO WAS CHOSEN BY DEMOCRATS AS THE NEW CHAIRMAN OF
THE HOUSE BUDGET COMMITTEE THE 54YEAROLD LAWMAKER IS AN ADVOCATE OF
DEFENSE SPENDING CUTS AND AN OPPONENT OF THE LINEITEM VETO

BRITISH OILSPILL CREWS EXPRESSED HOPE THAT A SALVAGE OPERATION MIGHT BE
LAUNCHED TO RECOVER CRUDE OIL GUSHING FROM A SUPERTANKER THAT SLAMMED INTO
THE SHETLAND ISLANDS TUESDAY THE SHIP WAS APPARENTLY STILL IN ONE PIECE
MEANWHILE QUESTIONS AROSE OVER WHETHER THE CREW ABANDONED THE SHIP TOO
SOON

RONALD BROWN BECAME THE FIRST OF CLINTON'S CABINET CHOICES TO TESTIFY AT
CONFIRMATION HEARINGS THE COMMERCE SECRETARY NOMINEE VOWED TO TRANSFORM THE
AGENCY INTO A TRADE AND TECHNOLOGY POWERHOUSE HIS SELECTION IS
CONTROVERSIAL BECAUSE OF HIS PRIOR LOBBYING FOR HAITI'S GOVERNMENT AND
JAPANESE COMPANIES

VETERANS AFFAIRS OFFICIALS SAID WORLD WAR II VETERANS INJURED IN SECRET
TESTS OF POISONOUS MUSTARD GAS CAN CLAIM COMPENSATION FOR AN EXTENDED LIST
OF AILMENTS RANGING FROM LUNG CANCER TO LEUKEMIA BUT A PANEL OF SCIENTISTS
SAID THE DEFENSE DEPARTMENT SHOULD GO FURTHER BY LAUNCHING A STUDY OF ANY OF
THE THOUSANDS OF VICTIMS STILL ALIVE

SOMALI CLAN LEADERS PUT ASIDE THEIR BICKERING AND AGREED TENTATIVELY TO HOLD
A NATIONAL RECONCILIATION CONFERENCE IN MOGADISHU IN APRIL ACCORDING TO
SOURCES ATTENDING THIS WEEK'S DISCUSSIONS IN ETHIOPIA THE UNSPONSORED
TALKS HAD BEEN DISRUPTED BY ANGRY SPEECHES ON MONDAY AND TUESDAY

A PENTAGON STUDY CONCLUDED THAT THE ECONOMIC EFFECTS OF CUTS IN DEFENSE
SPENDING ARE QUITE MANAGEABLE THE REPORT WHICH SAID THE POSTCOLD WAR
CHANGEOVER DOESN'T POSE ANY EXTRAORDINARY PROBLEMS FOR THE US CONTRASTS
SHARPLY WITH REMARKS MADE BY CLINTON DURING THE PRESIDENTIAL CAMPAIGN

EL SALVADOR'S MILITARY CHIEFS BLOCKED A PLANNED PURGE OF THEIR RANKS IN
VIOLATION OF UNBROKERED PEACE ACCORDS LEFTIST LEADERS CHARGED ARMY
OFFICERS PERSUADED PRESIDENT CRISTIANI TO ASK THE UN FOR EXTRA TIME TO
COMPLETE THE DISMISSAL OF OVER 100 OFFICERS ACCUSED OF HUMAN RIGHTS
VIOLATIONS

SARAJEVO WAS ROCKED BY INTENSE SHELLING AND ANTIAIRCRAFT FIRE IN MANY
RESIDENTIAL DISTRICTS AFTER SEVERAL DAYS OF CALM ACCORDING TO RADIO REPORTS
FROM THE BOSNIAN CAPITAL MEANWHILE THE US SAID AS MANY AS 70000 PEOPLE
ARE BEING HELD PRISONER IN THE FORMER YUGOSLAVIA MANY IN SECRET CAMPS

A FEDERAL JUDGE ORDERED THE ARCHIVIST OF THE US TO ACT TO ASSURE THAT
RECORDS ON WHITE HOUSE COMPUTERS AREN'T DESTROYED BEFORE BUSH LEAVES OFFICE
THE WHITE HOUSE HAD ARGUED THAT ELECTRONIC MAIL MESSAGES AREN'T RECORDS ONCE
A PAPER COPY HAS BEEN PRINTED BUT THE JUDGE SAID PRINTED COPIES SELDOM
CONTAIN ALL DATA IN THE COMPUTER

NFL OWNERS AND PLAYERS AGREED ON A NEW SEVENYEAR CONTRACT THE AGREEMENT
BRINGS UNRESTRICTED FREE AGENCY AND A SALARY CAP TO PRO FOOTBALL THE
NATIONAL FOOTBALL LEAGUE HAD BEEN WITHOUT A COLLECTIVE BARGAINING AGREEMENT
FOR OVER FIVE YEARS

THE US AND RUSSIA ANNOUNCED THAT THEY WILL COLLABORATE ON CONSTRUCTION OF
A TEXAS SUPERCOLLIDER IN A TRANSACTION THAT COULD SAVE US TAXPAYERS 100
MILLION WHILE GIVING RUSSIA A SOURCE OF HARD CURRENCY

DIED DIZZY GILLESPIE 75 JAZZ TRUMPETER WHO WAS ONE OF THE FOUNDERS OF THE
BEBOP STYLE IN ENGLEWOOD NJ OF PANCREATIC CANCER  RUDOLF NUREYEV
54 SOVIET BALLET DANCER WHO DEFECTED TO THE WEST IN 1961 IN PARIS OF
COMPLICATIONS FROM AIDS 9301070084 930107 QUARTERLY MUTUAL FUNDS REVIEW
 HEARTLAND VALUE FUND DROPS SALES CHARGE

NEW YORK THE TOPPERFORMING HEARTLAND VALUE FUND IS DROPPING ITS 45
UPFRONT SALES COMMISSION

THE SMALLCOMPANY STOCK FUND HAS SOARED DURING THE CURRENT SMALLSTOCK
RALLY HEARTLAND VALUE HAS GAINED 1128 DURING THE PAST TWO YEARS COMPARED
WITH A 685 AVERAGE FOR ALL SMALLCOMPANY STOCK FUNDS

DESPITE THAT STRONG PERFORMANCE THE MILWAUKEEBASED FUND HAS LESS THAN 50
MILLION IN ASSETS WITH 3000 MUTUAL FUNDS OUT THERE IT'S TOUGH TO GET
RECOGNITION FROM BROKERS AND INVESTORS ALIKE SAYS WILLIAM NASGOVITZ
PRESIDENT OF HEARTLAND ADVISORS WHICH MANAGES THE FUND

UNTIL NOW THE FUND HAS BEEN SOLD THROUGH BROKERS BY DROPPING THE SALES
CHARGE MR NASGOVITZ HOPES TO APPEAL TO NOLOAD FUND INVESTORS WHO LIKE TO
BUY FUNDS THAT DON'T CHARGE A SALES COMMISSION

THE HEARTLAND FUND PLANS TO IMPOSE A REDEMPTION FEE WHICH CAN RUN AS HIGH
AS 3 ON FUND SHARES SOLD WITHIN THREE YEARS OF PURCHASE HEARTLAND
ADVISORS ALSO IS SCRAPPING THE SALES COMMISSION ON ITS US GOVERNMENT FUND

HEARTLAND'S ACTION FOLLOWS SIMILAR MOVES IN 1992 BY STRONG FUNDS AND BY
SKYLINE SPECIAL EQUITIES FUND IN ADDITION LAST YEAR FIDELITY INVESTMENTS
ELIMINATED VIRTUALLY ALL SALES COMMISSIONS ON FUNDS BOUGHT IN RETIREMENT
ACCOUNTS 9301070083 930107 SYMIX FISCAL 2ND PERIOD NET

COLUMBUS OHIO SYMIX SYSTEMS INC A MAKER OF SOFTWARE SYSTEMS SAID
PERSHARE EARNINGS IN ITS SECOND QUARTER ENDED DEC 31 FELL TO BETWEEN FIVE
AND SEVEN CENTS FROM 28 CENTS A YEAR EARLIER

THE COMPANY SAID REVENUE WAS 20 LESS THAN ANTICIPATED SYMIX SAID CUSTOMERS
DELAYED PURCHASES IN THE FINAL WEEKS OF THE QUARTER SOME OF WHICH WAS
CAUSED BY ANTICIPATION OF AN INVESTMENTTAX CREDIT IN 1993

IN THE YEAREARLIER PERIOD SYMIX HAD NET INCOME OF 803182 ON REVENUE OF
78 MILLION 9301070082 930107 DR PEPPER AMENDS IPO PROJECTING PRICE 
AT 12 TO 14 A SHARE

DALLAS DR PEPPER/SEVENUP COS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 205 MILLION COMMON SHARES OR
35 OF ITS STOCK AT A PROJECTED 12 TO 14 EACH

THE FILING AMENDS THE SOFTDRINK MAKER'S DEC 3 FILING BY ADDING THE
PROJECTED PRICE AND INCREASING THE SIZE OF THE OFFERING BY 500000 SHARES
THE COMPANY SAID IT WOULD USE EXPECTED NET PROCEEDS OF 246 MILLION TO 287
MILLION TO TRIM DEBT

LAST SUMMER THE COMPANY WITHDREW A PLAN TO OFFER 30 MILLION SHARES AFTER
CUTTING THE PRICE TO 17 TO 18 EACH FROM 20 TO 23 AND STILL FAILING TO
ATTRACT ENOUGH BUYERS THE COMPANY SAID A RECAPITALIZATION LAST OCTOBER THAT
SLASHED INTEREST EXPENSES MEANS IT DOESN'T NEED TO RAISE AS MUCH EQUITY NOW
THE CURRENT OFFERING LEAVES THE COMPANY WITH NEARLY 300 MILLION MORE IN
DEBT ON THE BALANCE SHEET THAN LAST YEAR'S PROPOSED OFFERING WOULD HAVE

THE COMPANY ALSO SAID IT WILL POST A 748 MILLION CHARGE FOR AN ACCOUNTING
CHANGE AND RESTATE ITS 1992 NINEMONTH NET LOSS TO 803 MILLION FROM THE
PREVIOUSLY POSTED 65 MILLION LOSS THE COMPANY SAID 1992 SALES ROSE TO
BETWEEN 655 MILLION AND 667 MILLION UP 9 TO 11 FROM A YEAR EARLIER ON
HIGHER VOLUME AND PRICES OPERATING PROFIT ROSE 14 TO 16 TO BETWEEN 157
MILLION AND 160 MILLION 9301070081 930107 POLITICS & POLICY MINNESOTA
REP SABO LIBERAL DEMOCRAT IS NEW CHAIRMAN OF BUDGET COMMITTEE  
BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON MINNESOTA REP MARTIN SABO A LIBERAL ADVOCATE OF DEFENSE
SPENDING CUTS AND AN OPPONENT OF THE LINEITEM VETO WAS CHOSEN BY DEMOCRATS
AS THE NEW CHAIRMAN OF THE HOUSE BUDGET COMMITTEE

THE 54YEAROLD LAWMAKER VOWED TO FOLLOW THE LEAD OF THE CLINTON
ADMINISTRATION BUT HIS ELECTION COULD MAKE IT EASIER FOR LIBERALS TO PRESS
THEIR CASE FOR DEEPER PENTAGON CUTS TO COPE WITH NEW DEFICIT PROJECTIONS

MEANWHILE THE SENATE DEMOCRATIC LEADERSHIP MOVED QUICKLY TO HIGHLIGHT THE
ROLE OF WOMEN IN THE CHAMBER BY ASSIGNING ITS RECORD CLASS OF FOUR NEW WOMEN
MEMBERS TO PROMINENT COMMITTEES IN THE AFTERMATH OF THE 1991 ANITA HILL
SEXUALHARASSMENT HEARINGS THE ALL WHITE MALE JUDICIARY COMMITTEE WILL ADD
TWO WOMEN CALIFORNIA SEN DIANNE FEINSTEIN AND ILLINOIS SEN CAROL MOSELEY
BRAUN THE FIRST BLACK WOMAN IN THE CHAMBER'S HISTORY SENS FEINSTEIN AND
PATTY MURRAY D WASH WON SEATS ON THE SENATE APPROPRIATIONS COMMITTEE
AND SEN BARBARA BOXER D CALIF WAS PLACED ON THE BANKING COMMITTEE
AHEAD OF THREE OTHER NEWCOMERS INCLUDING SENS BRAUN AND MURRAY

MARYLAND SEN BARBARA MIKULSKI WHO WAS THE DEMOCRAT'S SOLE WOMAN MEMBER
BEFORE THIS YEAR HAS BEEN ELEVATED TO A FLOOR LEADERSHIP POST HELD BY
FORMER SEN WYCHE FOWLER OF GEORGIA AND IN RETURN FOR THESE PLUM
ASSIGNMENTS THE LEADERSHIP IS ALMOST CERTAIN TO INSIST THAT AT LEAST ONE OF
THE WOMEN TAKE THE MORE NETTLESOME JOB OF SITTING ON THE SENATE ETHICS
COMMITTEE TO JUDGE THE SEXUALHARASSMENT CHARGES AGAINST SEN BOB PACKWOOD
R ORE

AS A MEMBER OF THE HOUSE APPROPRIATIONS SUBCOMMITTEE THAT OVERSEES THE
MILITARY BUDGET MR SABO HAS SUPPORTED EFFORTS TO CUT US TROOPS ABROAD
AND SEVERELY REDUCE SPENDING FOR THE STRATEGIC DEFENSE INITIATIVE HE IS A
FORMER PARTY LEADER AND SPEAKER IN THE MINNESOTA LEGISLATURE SINCE WINNING
ELECTION TO CONGRESS IN 1978 HE HAS PROVEN TO BE A JEALOUS GUARDIAN OF THE
INSTITUTION'S POWERS OVER SPENDING

TOGETHER WITH THE DEMOCRATIC LEADERSHIP HE VOTED TO KILL A BALANCEDBUDGET
CONSTITUTIONAL AMENDMENT LAST SUMMER HE HAS OPPOSED NOT ONLY THE LINEITEM
VETO BUT ALSO A COMPROMISE BACKED BY SPEAKER THOMAS FOLEY THAT WOULD GIVE
THE WHITE HOUSE GREATER FLEXIBILITY IN DEMANDING RESCISSIONS OF SPECIFIC
APPROPRIATIONS FROM SPENDING BILLS

MR SABO WILL SUCCEED BUDGET COMMITTEE CHAIRMAN LEON PANETTA WHO HAS BEEN
TAPPED BY MR CLINTON TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET
FROM THAT POSITION MR PANETTA WILL REMAIN A MAJOR FORCE IN SHAPING
DELIBERATIONS IN THE HOUSE BUT THE CALIFORNIA DEMOCRAT IS SEEN HIMSELF AS
SYMPATHETIC TO DEEPER CUTS FROM DEFENSE

MR SABO'S LAST BID FOR A LEADERSHIP POST WAS A SHORTLIVED CAMPAIGN SIX
YEARS AGO FOR THE DEMOCRATIC WHIP POSITION LEARNING FROM THAT EXPERIENCE
HE BEGAN ORGANIZING IN DECEMBER EVEN BEFORE MR PANETTA HAD BEEN FORMALLY
SELECTED BY MR CLINTON TO HEAD THE OMB THIS JUMP HELPED HIM BEAT OUT HIS
MORE JUNIOR RIVAL REP JOHN SPRATT BY A MARGIN OF 149112 IN YESTERDAY'S
CLOSED CAUCUS

A PRODUCT OF OXFORD AND YALE MR SPRATT'S STRONG SHOWING TESTIFIED TO HIS
OWN POPULARITY AND THE CONTEST BETWEEN THE TWO MEN WAS FREE OF THE PERSONAL
RANCOR THAT OFTEN ACCOMPANIES SUCH PARTY CONTESTS NONETHELESS THE WEALTHY
SOUTH CAROLINIAN IS CLOSELY IDENTIFIED WITH THE ANTIDEFICIT BALANCEDBUDGET
SENTIMENTS OF YOUNGER DEMOCRATS LIKE HIMSELF WHO WERE ELECTED IN 1982 AND
AS A MEMBER OF THE ARMED SERVICES COMMITTEE MR SPRATT IS REGARDED AS A
MODERATE ON DEFENSE AND HAS BEEN AN ALLY OF CHAIRMAN LES ASPIN MR
CLINTON'S CHOICE FOR DEFENSE SECRETARY 9301070079 930107 POLITICS &
POLICY US ORDERS IRAQ TO MOVE MISSILES OUT OF SOUTH ZONE  
ALLIES JOIN IN ULTIMATUM GIVING 2DAY DEADLINE ON ANTIAIRCRAFT GEAR 
 BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON THE US AND ITS ALLIES DEMANDED THAT IRAQ REMOVE
ANTIAIRCRAFT MISSILES THAT ARE THREATENING US WARPLANES AN ULTIMATUM
DELIVERED AFTER CONSULTATIONS WITH PRESIDENTELECT CLINTON

THE DEMAND DELIVERED TO IRAQ'S UNITED NATIONS AMBASSADOR GIVES IRAQ 48
HOURS TO REMOVE ANTIAIRCRAFT MISSILES IT RECENTLY SHIFTED INTO SOUTHERN
IRAQ AN AREA PATROLLED BY US WARPLANES AND BARRED TO IRAQI AIRCRAFT
BRITAIN FRANCE AND RUSSIA JOINED THE US IN DELIVERING THE ULTIMATUM AND
US OFFICIALS SAID IT IS PRIVATELY SUPPORTED BY SAUDI ARABIA AND KUWAIT

IN EFFECT THE WARNING IS A NOTICE THAT US FRENCH AND BRITISH WARPLANES
WILL BE PREPARED TO BOMB ANTIAIRCRAFT MISSILE SITES BEGINNING TOMORROW
NIGHT IF THE WEAPONS AREN'T REMOVED US FORCES ALSO WILL BE PREPARED TO
ATTACK ASSOCIATED SITES SUCH AS AIRFIELDS TO DEMONSTRATE RESOLVE
OFFICIALS SAID

THE UNITED DECLARATION WAS DESIGNED TO CONVINCE IRAQI LEADER SADDAM HUSSEIN
THAT THERE IS LITTLE POINT IN PUSHING AHEAD WITH HIS NEWEST CHALLENGE THE
LATEST IN A LONG SERIES HE HAS MOUNTED AGAINST INTERNATIONAL RESTRICTIONS ON
HIS REGIME AFTER THE WAR OVER KUWAIT

US OFFICIALS ARE PUZZLED ABOUT WHY THE IRAQI LEADER IS TESTING WESTERN
RESOLVE NOW FIRST BY HARASSING UN WORKERS AND SENDING HIS AIRCRAFT INTO
PROHIBITED AIR SPACE IN SOUTHERN IRAQ AND NOW BY MOVING IN SOVIETMADE
SURFACETOAIR MISSILES SINCE LAST SUMMER IN AN EFFORT TO PROTECT SHIITE
MUSLIMS IN THE REGION FROM ATTACK BY THE IRAQI ARMY THE US AND ITS ALLIES
HAVE HAD IRAQ ON NOTICE THAT IT SHOULDN'T OPERATE ITS AIRCRAFT IN THE AREA
OR THREATEN US PLANES MONITORING THE SKIES

SADDAM HUSSEIN APPEARS TO BE CALCULATING EITHER THAT PRESIDENT BUSH IS TOO
WEAK TO MOVE AGAINST HIM IN HIS LAST TWO WEEKS OF OFFICE OR THAT MR
CLINTON WILL BE AFRAID TO ACT IMMEDIATELY UPON ASSUMING OFFICE BOTH
CALCULATIONS PROBABLY ARE INCORRECT MR BUSH'S AIDES INSIST THAT THE
PRESIDENT HASN'T ANY REASON TO REFRAIN FROM MILITARY ACTION BEFORE LEAVING
OFFICE HE MAY ACTUALLY HAVE A PERSONAL INCENTIVE TO EMBARRASS THE IRAQI
LEADER ONCE MORE BEFORE LEAVING OFFICE AND MR CLINTON'S AIDES SAY
PRIVATELY THAT THEY EXPECT TO BE CHALLENGED EARLY ON BY SADDAM HUSSEIN AND
ALREADY HAVE CONSIDERED HOW THEY WOULD RESPOND

IN THE CASE OF THE NEW WARNING OVER ANTIAIRCRAFT MISSILES THE STEP HAS
BEEN COORDINATED BY THE DEPARTING AND ARRIVING ADMINISTRATIONS WE ARE
CONSULTING WITH THE ADMINISTRATION WITH RESPECT TO THE ULTIMATUM SAID MARK
GINSBERG FOREIGN POLICY SPOKESMAN FOR THE CLINTON TRANSITION TEAM

IT'S ALSO POSSIBLE THAT THE CHALLENGE IN SOUTHERN IRAQ IS MERELY AN ATTEMPT
BY SADDAM HUSSEIN TO DEMONSTRATE HIS ABILITY TO MAKE TROUBLE BEFORE BACKING
DOWN THAT HAS BEEN THE PATTERN HE HAS FOLLOWED PERIODICALLY IN THE PAST TWO
YEARS DO THEY WANT AN INCIDENT OR NOT ASKED A SENIOR BUSH ADMINISTRATION
OFFICIAL THIS WHOLE THING MAY BE AN ELABORATE PRELUDE TO A PERIOD OF GOOD
BEHAVIOR

US OFFICIALS ARE MORE TROUBLED BY A PATTERN OF IRAQI MISBEHAVIOR IN RECENT
WEEKS THAN THE ANTIAIRCRAFT MISSILES THEMSELVES IN FACT IT WOULD BE
FAIRLY EASY FOR IRAQ TO BACK DOWN FROM THE CURRENT CONFRONTATION US
CONCERN FOCUSES ON THREE ANTIAIRCRAFT MISSILE SITES RECENTLY ESTABLISHED
SOUTH OF THE LINE THAT DEMARCATES THE NOFLY ZONE US OFFICIALS SAY THEY
ARE DEMANDING THAT IRAQ MOVE THOSE BATTERIES BACK TO THEIR FORMER POSITIONS
AND AREN'T ASKING THAT IRAQ REMOVE OTHER INACTIVE ANTIAIRCRAFT MISSILES IN
THE SOUTH THAT HAVE BEEN IN PLACE ALL ALONG

IN ANY EVENT US OFFICIALS SAY ALLIED MILITARY LEADERS ARE CONFIDENT THAT
THE JOB OF TAKING OUT THE SURFACETOAIR MISSILES WHILE DANGEROUS WOULDN'T
BE ENORMOUSLY COMPLICATED EXPECTING JUST SUCH AN IRAQI CHALLENGE THE US
AND BRITAIN HAVE MAINTAINED BEEFEDUP AIR FORCES IN THE AREA SINCE THE
ALLIES FIRST ORDERED IRAQ TO KEEP ITS PLANES OUT OF THE SKIES OF SOUTHERN
IRAQ

THE US CURRENTLY HAS THE AIRCRAFT CARRIER KITTY HAWK WHICH CARRIES ABOUT
80 AIRCRAFT IN THE PERSIAN GULF ALONG WITH 11 OTHER SHIPS THE PENTAGON
WON'T DISCLOSE THE TOTAL NUMBER OF US AIRCRAFT IN THE REGION BUT SAYS THE
FORCE ON HAND INCLUDES A VARIETY OF FIGHTER AND SURVEILLANCE AIRCRAFT
RANGING FROM THE F117 STEALTH FIGHTER TO THE U2 SPY PLANE ALL TOLD THE
US MILITARY HAS ABOUT 17000 PEOPLE IN THE REGION

IN ADDITION BRITAIN HAS SIX FIGHTER AIRCRAFT STATIONED AT DHAHRAN IN NEARBY
SAUDI ARABIA AS WELL AS REFUELING PLANES TO SUPPORT THEM FRANCE ALSO HAS
MAINTAINED AIRCRAFT IN SAUDI ARABIA 9301070078 930107 WEDNESDAY'S
MARKETS TOBACCO STOCKS DRIVEN DOWN DOLLAR GAINS  BY STEVEN
E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL

BIG GROWTH STOCKS SLUMPED LED LOWER BY SHARP DECLINES IN TOBACCO AND DRUG
ISSUES BUT SMALLER STOCKS SOARED TO A RECORD WHILE BOND PRICES SLIPPED AND
THE DOLLAR ROSE

THE DOW JONES INDUSTRIAL AVERAGE SANK 271 POINTS TO 330516 IN UNUSUALLY
HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX INCHED UP 018 TO 43452
AND THE NASDAQ COMPOSITE INDEX SOARED 751 TO A RECORD 68185

TOBACCO SHARES TOOK A NOSE DIVE AFTER THE ENVIRONMENTAL PROTECTION AGENCY
CONCLUDED THAT PASSIVE SMOKE INHALED BY NONSMOKERS CAUSES LUNG CANCER IN
HUMANS PHILIP MORRIS DISPUTED THE FINDING BUT ITS SHARE PRICE TUMBLED 1
5/8 OR 22 TO 71 7/8 FOLLOWING A 2 7/8 DECLINE TUESDAY AMERICAN BRANDS
PLUNGED 1 5/8 TO 37 3/8 AND RJR NABISCO DROPPED 1/4 OR 29 TO 8 1/4

JACK MAXWELL A TOBACCO ANALYST AT WHEAT FIRST SECURITIES IN RICHMOND VA
SAID HE WAS UNCONCERNED ABOUT THE EPA REPORT AND THE RESULTING SELLOFF
IT'S SERIOUS FOR THE IMAGE BUT NOT FOR THE BOTTOM LINE HE SAID

MR MAXWELL SAID THAT AT LEAST 20 STUDIES IN THE US HAVE FOUND NO
CORRELATION BETWEEN SECONDHAND SMOKE AND HEALTH AND THAT HE DIDN'T EXPECT
THE EPA'S DECISION TO HARM THE TOBACCO COMPANIES' POSITION IN HEALTHRELATED
LAWSUITS

HE ALSO SAID HE WASN'T ALARMED BY THE POSSIBILITY OF A TAX INCREASE ON
CIGARETTE SALES THE WALL STREET JOURNAL REPORTED TUESDAY THAT HEALTH GROUPS
WERE PUSHING FOR A 2APACK TAX TO BOOST FEDERAL REVENUES AND DISCOURAGE
SMOKING MR MAXWELL EXPECTS A TAX INCREASE BUT NOT NEARLY AS HIGH AS 2

THE EARNINGS OUTLOOK FOR TOBACCO COMPANIES IS STILL BRIGHT MR MAXWELL
SAID THESE COMPANIES ARE ALL VERY SOLID WITH GOOD GROWTH FOR THE
FORESEEABLE FUTURE HE SAID WITH PRICES DOWN LIKE THIS IT'S A GOOD
BUYING OPPORTUNITY

GROWTH STOCKS ALSO WERE PRESSURED BY SHARP DECLINES IN DRUG ISSUES AMERICAN
HOME PRODUCTS SANK 2 1/8 OR 32 TO 64 1/2 PFIZER LOST 1 5/8 OR 23 TO
68 1/4 JOHNSON & JOHNSON SLID 1 1/2 OR 31 TO 46 7/8 AND MERCK SANK 1
1/8 OR 26 TO 42

THOUGH THE SMALLSTOCK RALLY IS STEAMING AHEAD JAMES SOLLOWAY DIRECTOR OF
RESEARCH AT ARGUS RESEARCH WARNS INVESTORS TO BE WARY OF AN INEVITABLE
CORRECTION WHEN THE CORRECTION DOES BEGIN SMALL STOCKS WILL FEEL THE
BRUNT OF IT HE SAID WE'LL SEE A PERIOD WHERE LARGER STOCKS ARE
OUTPERFORMING EVEN IF THAT MEANS ONLY THAT THEY FALL LESS THAN SMALLER
STOCKS

IN MAJOR MARKET ACTION

STOCK PRICES WERE MIXED VOLUME TOTALED 2885 MILLION SHARES ON THE NEW YORK
STOCK EXCHANGE WHERE 1091 ISSUES ROSE AND 780 FELL

BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST A
QUARTERPOINT OR 250 FOR EACH 1000 FACE AMOUNT TO YIELD 735

THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16340
MARKS AND 12515 YEN COMPARED WITH 16255 MARKS AND 12483 YEN TUESDAY
9301070077 930107 LEISURE & ARTS FILM LOUIS MALLE'S TALE OF OBSESSIVE
LOVE  BY JULIE SALAMON

LOUIS MALLE HAS BEAUTIFULLY CRAFTED A MOVIE OUT OF DAMAGE JOSEPHINE
HART'S BESTSELLING NOVEL OF OBSESSIVE LOVE CERTAINLY THE FILM'S SCRIPT BY
DAVID HARE HAS IMPROVED ON THE NOVEL'S PURPLE PROSE MAINLY BY DELETING
MUCH OF IT MOVIE AUDIENCES ARE SPARED MS HART'S BREATHY DESCRIPTIONS OF
SEX BETWEEN A RESPECTED BRITISH MEMBER OF PARLIAMENT AND HIS LOVER WHO IS
ALSO HIS SON'S FIANCEE IN HER OMNIPOTENCE SHE RULED HER ENSLAVED MASTER

EVEN SO THE MOVIE'S ELEGANT EARNESTNESS BECOMES A LITTLE SUFFOCATING ONE
LONGS FOR AT LEAST SOME OF THE FUN AND ABSURDITY MR MALLE BROUGHT 20 YEARS
AGO TO ANOTHER STORY OF LOVE AMONG THE BOURGEOISIE MURMUR OF THE HEART
THIS PIECE ABOUT THE DANGEROUS REPRESSION OF THE ENGLISH UPPER CLASSES IS
MORBIDLY SOMBER RIGHT FROM THE START

IN DAMAGE JEREMY IRONS PLAYS THE MIDDLEAGED POLITICIAN WITH THE PERFECT
FAMILY WHO WRECKS IT ALL IN ORDER TO HAVE SEX WITH HIS FUTURE
DAUGHTERINLAW MR IRONS HAS PLAYED SO MANY CREEPY MELANCHOLY CHARACTERS
AND PLAYED THEM SO WELL THAT WHEN HE GAZES AT HIS ORDERLY HOME AND
BEAUTIFUL WIFE YOU EXPECT HIM TO LOOK DEPRESSED EVEN BEFORE HE MEETS THE
WOMAN WHO WILL WRECK HIS LIFE IT'S OBVIOUS IMMEDIATELY THAT THIS REPRESSED
STIFF IS A PRIME CANDIDATE FOR DESTRUCTION BY LUST

IF ONLY LUST WOULD BRING HIM HAPPINESS AT LEAST BRIEFLY BUT IN THIS
MOVIE PASSION IS A SMILING MASK FOR PAIN A PURELY PERVERSE DECEPTION
SIGNIFYING NONE OF THE PLEASURE THAT USUALLY MAKES THE PAIN WORTHWHILE 
FOR A WHILE

CONVERSATION CLEARLY ISN'T THE POINT HERE EITHER AND THE SEX IS GRIM 
AEROBICS WITH A WINCE THE LOVERS LOOK UNCOMFORTABLE MOST OF THE TIME OR
MAYBE THAT'S JUST HOW THEY SEEM AS THEY COUPLE AND UNCOUPLE ON UNYIELDING
SURFACES WITH SHARP CORNERS ON TABLE TOPS AND UNUPHOLSTERED STRAIGHTBACK
CHAIRS

ALL THIS WOULD BE MORE PLAUSIBLE OR IN ANY EVENT MORE INTERESTING IF THE
OBJECT OF THIS PASSION HAD MORE VIM THE SON'S FIANCEE ANNA IS STRANGELY
PASSIVE FOR A YOUNG WOMAN WHO CALMLY IDENTIFIES HERSELF AS A DESTRUCTIVE
FORCE JULIETTE BINOCHE THE ACTRESS WHO PLAYS HER IS BEAUTIFUL BUT NOT
MYSTERIOUS OR CHARMING OR EVEN SENSUOUS DESPITE HER ATHLETIC SEXUAL
GAMESMANSHIP SHE DOESN'T EVEN SEEM LIKE A BAD GIRL THE KIND OF WOMAN WHO
DIDN'T NEED A MOTIVE TO DO EVIL IN CLASSIC FILMS NOIRS

STILL THE MOVIE IS A PLEASURE TO WATCH MAINLY BECAUSE OF ITS LOVELY
ATMOSPHERICS EVERY SCENE IS GRACEFULLY COMPOSED AND MOVES SO FLUIDLY INTO
THE NEXT THAT VISUAL MOMENTUM ALONE CREATES AN EXCITEMENT APART FROM THE
LUGUBRIOUS GRINDING OF THE STORY MR MALLE AND HIS TECHNICAL PEOPLE HAVE
GIVEN THE MATERIAL A FEELING OF DEPTH AND RESONANCE FAR RICHER THAN IT
DESERVES

AND THE PERFORMANCES ARE VERY GOOD MIRANDA RICHARDSON IS ESPECIALLY
ASTONISHING AS INGRID THE WIFE AND THE MOTHER OF A SON OLD ENOUGH TO BE
MARRIED INGRID ALSO THE DAUGHTER OF A POWERFUL POLITICIAN IS THE CRITICAL
PART OF THE PERFECT PACKAGE SHE IS AMBITIOUS AND BEAUTIFUL AND
JUDGMENTAL BUT ALSO LOVING AND MS RICHARDSON GETS EVERY ASPECT OF HER
JUST RIGHT SHE ISN'T ON SCREEN ALL THAT MUCH BUT HER PRESENCE IS FELT AT
EVERY MOMENT

THE RECENT CROP OF HOLIDAY MOVIES HAS YIELDED AN UNUSUAL NUMBER OF MEMORABLE
PERFORMANCES IN UNMEMORABLE MOVIES OR MEMORABLY AWFUL MOVIES THERE'S JACK
NICHOLSON'S BRAVURA SHOW IN DULL HOFFA AND HARVEY KEITEL'S OUTRAGEOUS SHOW
IN THE BLOODY BAD LIEUTENANT

AT LEAST SCENT OF A WOMAN THE SHOWCASE FOR AL PACINO'S LATEST ACTING TOUR
DE FORCE IS BEARABLE HOOHA INOFFENSIVELY BLAND BACKING TO SHOWCASE MR
PACINO'S DAZZLING TRICKS

HE IS ESPECIALLY AMAZING BECAUSE HE PLAYS AN OBNOXIOUS DRUNK FRANK SLADE
WHOSE MAIN SOCIAL SKILL IS AN ABILITY TO IDENTIFY THE PERFUME A WOMAN IS
WEARING IN HIS CASE THIS IS AN IMPORTANT PICKUP TOOL BECAUSE HE IS BLIND
THE WOMEN WHO FEEL SYMPATHETIC TOWARD HIM BECAUSE OF HIS BLINDNESS FALL
FOR IT EVERY TIME MR PACINO'S CHARACTER A RETIRED ARMY OFFICER CAN ALSO
DANCE THE TANGO REASONABLY WELL A TALENT MR PACINO TRANSFORMS INTO A BIT
OF MAGIC

THIS CHARACTER PROVIDES THE EXCITEMENT THE ONLY THING TO WATCH REALLY 
IN AN OTHERWISE PREDICTABLE STORY OF AN IRASCIBLE BLIND MILITARY MAN WHO
HIRES A NAIVE PREPSCHOOL BOY ON SCHOLARSHIP TO TAKE HIM TO NEW YORK CITY
FOR THE WEEKEND THEIR RELATIONSHIP EVOLVES FROM TETCHY TO AFFECTIONATE AND
THEY EVENTUALLY BECOME USEFUL TO ONE ANOTHER IN WAYS THEY DON'T EXPECT BUT
WE CERTAINLY DO

THE EXPERIENCED SCREEN WRITER BO GOLDMAN SEEMS TO HAVE DEVOTED MOST OF HIS
ATTENTION TO THE OLDER MAN WHO GETS ALL THE GOOD LINES DIRECTOR MARTY
BREST SPECIALIZES IN ACTION COMEDY BEVERLY HILLS COP MIDNIGHT RUN
SO PERHAPS INEVITABLY THERE IS A SCENE IN WHICH THE BLIND MAN DRIVES A
FERRARI VERY FAST

VIDEO TIP IT'S NOT THE ONLY REASON TO SEE DAY FOR NIGHT BUT THE MOVIE
WITHIN FRANCOIS TRUFFAUT'S MOVIE ABOUT LIFE ON A MOVIE SET CLOSELY PARALLELS
THE STORY IN DAMAGE ACTUALLY YOU DON'T NEED A SPECIAL REASON TO SEE DAY
FOR NIGHT A WONDERFUL PICTURE FOR ANYONE WHO CARES ABOUT MOVIES
9301070076 930107 CORPORATE FOCUS COMPAQ IS HOPING TO GET BIGGER BY
THINKING SMALLER  COMPANY ZEROING IN ON THE SMALL BUSINESS AND HOME
COMPUTER MARKETS  BY KYLE POPE STAFF REPORTER OF THE WALL STREET
JOURNAL

HOUSTON SEVEN MONTHS AFTER IT SHOOK UP THE PERSONAL COMPUTER BUSINESS
WITH ITS NEW LINE OF BARGAINPRICED MACHINES COMPAQ COMPUTER CORP IS
HOPING TO GET EVEN MORE PERSONAL

THE BIG COMPUTER MAKER WHICH ONCE CATERED ALMOST EXCLUSIVELY TO BIG
CORPORATE ACCOUNTS IS PREPARING TO LAUNCH A FRONTAL ASSAULT ON THE SMALL
BUSINESS AND HOME PC MARKETS THE STRATEGY INCLUDES WORK ON A BEVY OF GLITZY
NEW PRODUCTS INCLUDING SUCH CONSUMERORIENTED GADGETS AS HANDHELD
ELECTRONIC ORGANIZERS AND VASTLY EXPANDING THE COMPANY'S RETAIL REACH

WE KNOW THAT COMPUTING IS MOVING DEEPER AND DEEPER TOWARD THE INDIVIDUAL
USER SAID ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE OFFICER IN AN
INTERVIEW WE ARE BEGINNING TO LOOK AT TOTAL PERSONAL COMPUTING

THE MOVES WHICH WILL BE OUTLINED BY COMPANY OFFICIALS AT THE CONSUMER
ELECTRONICS SHOW IN LAS VEGAS THIS WEEK ARE PART OF A MAD SCRAMBLE
THROUGHOUT THE COMPUTER INDUSTRY TO WIN THE ATTENTION OF NONCORPORATE USERS
THOSE BUYERS WHICH ANALYSTS SAY COULD ACCOUNT FOR AS MUCH AS HALF OF THE
TOTAL US COMPUTER MARKET THIS YEAR HAVE COME INTO SHARP FOCUS IN RECENT
MONTHS AS COMPUTER PRICES HAVE TUMBLED AND THE NUMBER OF RETAIL STORES THAT
SELL THE NEW LOWPRICED MACHINES HAS EXPLODED

COMPAQ TOOK ITS FIRST STAB AT THE CONSUMER MARKET IN JUNE WITH THE
INTRODUCTION OF ITS HIGHLY SUCCESSFUL PROLINEA LINE OF DESKTOP PCS WITH
PRICES BEGINNING UNDER 900 THE PROLINEA WAS THE FIRST SALVO IN COMPAQ'S
BATTLE TO RECOVER MARKET SHARE LOST TO SUCH CLONEMAKERS AS DELL COMPUTER
CORP OF AUSTIN TEXAS AND PACKARDBELL ELECTRONICS INC OF CHATSWORTH
CALIF

THE NEW PRODUCTS ALONG WITH LAYOFFS AND OTHER AGGRESSIVE COSTCUTTING
MEASURES HELPED REVIVE THE COMPANY AFTER PROFITS PLUNGED IN 1991 FOR THE
FIRST NINE MONTHS OF 1992 COMPAQ'S NET INCOME NEARLY DOUBLED TO 1237
MILLION OR 148 A SHARE FROM 643 MILLION OR 72 CENTS A SHARE IN THE
YEAREARLIER PERIOD WHICH INCLUDED A BIG RESTRUCTURING CHARGE SALES FOR
THE PERIOD ROSE 12 TO 268 BILLION FROM 240 BILLION AND ANALYSTS EXPECT
COMPAQ TO REPORT RECORD SALES FOR THE FULL YEAR EMBOLDENED BY ITS SUCCESS
THE COMPANY HAS EVEN KICKED OFF A CAMPAIGN AGAINST GIANT NEC CORP IN ITS
HOME TERRITORY OF JAPAN

BUT MOST OF COMPAQ'S SALES SO FAR HAVE STILL BEEN TO CORPORATE CUSTOMERS
DESPITE PROLINEA'S LOW PRICE TAG IN A BID TO EXTEND ITS EXPOSURE TO
CONSUMERS COMPAQ NOW IS PLANNING THE EQUIVALENT OF A TOPTOBOTTOM SHAKEUP
IN THE WAY IT SELLS ITS PCS SIGNING UP SCORES OF NEW RETAIL OUTLETS SUCH AS
CONSUMER ELECTRONICS CHAINS WAREHOUSE CLUBS AND OTHER MASS MERCHANDIZING
OUTLETS

TODAY FOR INSTANCE COMPAQ IS EXPECTED TO ANNOUNCE THAT IT WILL BEGIN
SELLING ITS MACHINES THROUGH SERVICE MERCHANDISE'S 374 US OUTLETS A MOVE
THAT WILL INCREASE THE NUMBER OF COMPAQ RETAIL OUTLETS BY MORE THAN A THIRD
BY THIS SPRING COMPAQ OFFICIALS SAY THEY EXPECT TO AUTHORIZE AS MANY AS
2000 CONSUMER RETAIL STORES TO SELL ITS PRODUCTS A STABLE THAT THE COMPANY
GUESSES COULD GENERATE AS MUCH AS 20 OF THE COMPANY'S REVENUE THIS YEAR UP
FROM LESS THAN 5 IN 1992

THE MOVES COME ON TOP OF AGREEMENTS IN THE PAST TWO MONTHS TO SELL COMPAQ
PRODUCTS THROUGH COMPUSA INC A CHAIN OF BIG COMPUTER STORES AND OTHER
RETAILERS SUCH AS OFFICE DEPOT INC AND CIRCUIT CITY STORES INC COMPAQ
LAST MONTH ANNOUNCED PLANS TO BEGIN SELLING CERTAIN OF ITS PRODUCTS THROUGH
MAILORDER COMPANIES

BUT ANALYSTS NOTE THAT COMPAQ'S RETAIL EXPANSION IS A TALL ORDER FOR A
COMPANY THAT LAST YEAR COULD COUNT THE NUMBER OF CONSUMER RETAILERS THAT
SOLD ITS MACHINES ON ONE HAND AND IT ALSO COMES AS A NUMBER OF RIVALS ARE
ALSO ELBOWING THEIR WAY INTO THE CHANNEL

FURTHERMORE COMPAQ WATCHERS SAY THE COMPANY COULD FACE A REVOLT AMONG ITS
EXISTING DEALERS IF IT VASTLY EXPANDS ITS DISTRIBUTION NETWORK WITHOUT
FILLING THE ORDERS OF ITS LONGTIME RESELLERS COMPAQ HAS BEEN HAMSTRUNG BY
SUPPLY PROBLEMS SINCE IT UNVEILED ITS PROLINEA LINE IN JUNE AND THOUGH THE
COMPANY HAS MADE PROGRESS IN CHIPPING AWAY AT THE BACKLOG MR COOLEY LAST
MONTH SAID THE COMPANY STILL WAS ABLE TO FILL ONLY HALF OF THE DEALER ORDERS
FOR SOME OF THE MOST POPULAR LINES

ALLAN ADLER A SENIOR PARTNER AT MSI INC A COMPUTER MARKET RESEARCH FIRM
IN SEATTLE SAID COMPAQ'S NEW RETAIL THRUST COULD ALIENATE THE TRADITIONAL
COMPUTER RESELLERS THAT STILL ACCOUNT FOR THE VAST MAJORITY OF THE COMPANY'S
SALES

CLEARLY COMPAQ HAS THE MOST TO LOSE IN THIS MARKET MR ADLER SAYS THEY
ARE THE MOST DEPENDENT OF ALL THE MAJOR MANUFACTURERS ON THE TRADITIONAL
DEALER CHANNEL AND THAT LEAVES THEM VULNERABLE

MR PFEIFFER BRISTLES AT TALK OF TROUBLE BETWEEN COMPAQ AND ITS LONGTIME
RESELLERS HE SAYS THE COMPANY IS DETERMINED TO BROADEN ITS BASE TO EMBRACE
THE NEW USERS REGARDLESS OF WHERE THEY BUY

CHANGE IS GOING TO HAPPEN WITH OR WITHOUT US HE SAYS STANDING IN THE
WAY IS NOT GOING TO MAKE IT BETTER THESE PEOPLE NEED TO CHANGE IF THEY ARE
GOING TO SURVIVE

THE SECOND PART OF COMPAQ'S STRATEGY IS TO DEVELOP NEW PRODUCTS TO GO ON ALL
THOSE NEW SHELVES AMONG OTHER THINGS COMPAQ ENGINEERS ARE TRYING TO
DEVELOP A MACHINE THAT RECOGNIZES HANDWRITTEN AS WELL AS KEYBOARD COMMANDS
AND ARE WORKING ON SEVERAL NEW TECHNOLOGIES THAT MARRY FULLMOTION VIDEO AND
STEREOQUALITY SOUND ON THE PC

BUT HERE TOO THE COMPANY FACES PLENTY OF COMPETITION ALREADY APPLE
COMPUTER INC HAS UNVEILED A PROTOTYPE OF A SOCALLED PERSONAL DIGITAL
ASSISTANT WHICH THE CUPERTINO CALIF COMPANY SAYS WILL GIVE PEOPLE THE
POWER OF A DESKTOP PC IN A MACHINE THE SIZE OF A HARDBACK BOOK AND
ALTHOUGH ALL OF THE BUGS STILL HAVEN'T BEEN WORKED OUT PENBASED COMPUTERS
HAVE BEEN ON THE MARKET FOR ABOUT TWO YEARS MOST NOTABLY A LINE OF PRODUCTS
MANUFACTURED BY TANDY CORP'S GRID SYSTEMS INC UNIT

COMPAQ OFFICIALS ARE ALSO CONSIDERING UNVEILING ENTIRE NEW LINES OF DESKTOP
MACHINES TAILORMADE FOR THE CONSUMERRETAIL MARKET FOR EXAMPLE EXECUTIVES
SAY THEY ARE STUDYING THE NOTION OF INTRODUCING DIFFERENT LINES TAILORED FOR
DISTINCT RETAILING SEGMENTS PRICES COULD BE SUBSTANTIALLY LOWER THAN THE
COMPANY'S CURRENT ENTRYLEVEL LINE

BUT COMPAQ EXECUTIVES CAUTION THAT THE UNVEILING OF THESE PRODUCTS STILL IS
MONTHS AWAY AND THEY EMPHASIZE THAT PLANS COULD CHANGE WITH SHIFTS IN
TECHNOLOGY OR COMPETITION ALSO THEY ARE WARY OF CANNIBALIZING THEIR
CURRENT LINES WITH STRIPPEDDOWN MODELS THE MANUFACTURERS WHO HAVE
CRIPPLED THEIR FEATURES HAVE ALIENATED A WHOLE LOT OF CUSTOMERS SAYS ROSS
COOLEY A COMPAQ SENIOR VICE PRESIDENT 9301070075 930107 HEARD ON THE
STREET GE'S STOCK HOVERS NEAR ITS HIGH AS ANALYSTS BET FIRM CAN AVOID
PITFALLS OF OTHER GIANTS  BY AMAL KUMAR NAJ STAFF REPORTER OF THE
WALL STREET JOURNAL

BIG ISN'T NECESSARILY BAD

WHILE THE STOCKS OF AMERICAN GIANTS SUCH AS INTERNATIONAL BUSINESS MACHINES
GENERAL MOTORS AND WESTINGHOUSE ARE WALLOWING CLOSER TO THEIR YEARLY LOWS
THAN THEIR PEAKS GENERAL ELECTRIC HAS CLIMBED STEADILY IN RECENT WEEKS
HITTING A HIGH OF 87 1/2 BEFORE SUBSIDING TO YESTERDAY'S 86

SO CONVINCED ARE THE BULLS OF THE COMPANY'S FUNDAMENTAL STRENGTH AND ITS
ABILITY TO AVOID THE PITFALLS OF OTHER GIANTS THAT MANY PREDICT GE STOCK
WILL CONTINUE TO OUTPERFORM

THERE'S SOME SIGNIFICANT INSTITUTIONAL BUYING GOING ON SAYS LASZLO
BIRINYI OF BIRINYI ASSOCIATES INC A STOCK MARKET RESEARCH COMPANY

THAT'S A CHANGE THE STOCK IN THE PAST HAS BEEN SO LACKLUSTER THAT A FEW
YEARS AGO CHAIRMAN JOHN F WELCH JR EVEN PLEDGED TO DELIVER DOUBLEDIGIT
EARNINGS GROWTH ANNUALLY BUT MANY WALL STREET ANALYSTS AND PORTFOLIO
MANAGERS BALKED EVEN THOUGH GE DELIVERED ON ITS PROMISES GE'S SIZE AND
COMPLEXITY CONFOUNDED THE INVESTMENT COMMUNITY SO DID ITS VULNERABILITY TO
RECESSION IN A NUMBER OF BUSINESSES

BUT THE SKEPTICISM SEEMS FINALLY TO BE FADING

ONE REASON GE NOW APPEARS ROCKSOLID COMPARED WITH IBM GM AND OTHER LARGE
RIVALS THAT ONCE SEEMED INVINCIBLE BUT CURRENTLY ARE GRAPPLING WITH BIG
PROBLEMS AS MONEY FLEES FROM THESE STOCKS IN SEARCH OF A NEW HOME GE
APPEARS SAFE AND DYNAMIC SAYS BRETT BERRY VICE PRESIDENT OF EQUITY
RESEARCH AT BAILARD BIEHL & KAISER A SAN MATEO CALIF MONEY MANAGEMENT
COMPANY

ECHOING OTHER INVESTORS HE SAYS GE UNDER MR WELCH HAS COME TO SYMBOLIZE
EVERYTHING THAT IBM AND GM SHOULD HAVE DONE BUT DIDN'T THE PROBLEM AT GM
WAS A LACK OF COST CONTROL AND AT IBM A LACK OF REVENUE GROWTH AND MARKET
SHARE BEING TAKEN AWAY BY THE COMPETITION HE SAYS GE HAS DONE A GOOD JOB
ON BOTH

IN THE PAST FEW WEEKS BAILARD BIEHL WHICH GOT OUT OF IBM LAST JUNE HAS
INCREASED ITS HOLDINGS IN GE MR BERRY SAYS HE WOULD PUT GE AMONG THE TOP
10 COMPANIES FOR WIDOWSANDORPHANS FUNDS REFERRING TO INVESTMENTS THAT
ARE CONSIDERED GENERALLY SAFE AND STABLE FOR MEDIUM TO LONGTERM HOLDINGS
WE INTEND TO INVEST IN COMPANIES THAT HAVE VERY DYNAMIC MANAGEMENT AND WE
FEEL GE IS ONE HE SAYS

THE PROBLEMS AT OTHER BEHEMOTHS HAVE SPOTLIGHTED ONE OF GE'S FUNDAMENTAL
STRENGTHS ITS MANAGEMENT WHILE THE RECESSION CLIPPED OTHER COMPANIES'
EARNINGS GE'S DIVERSE OPERATIONS MUFFLED THE BLOW WITH PRODUCTIVITY
INCREASES AND COST REDUCTIONS AND QUARTER AFTER QUARTER IT HAS SURPRISED
ANALYSTS WITH THE RESULTS EVEN GE'S BIG FINANCIAL SUBSIDIARY WHICH
ACCOUNTED FOR 28 OF GE'S PROFIT LAST YEAR HAS PROVED WRONG THE SKEPTICS
WHO EXPECTED THE BUSINESS TO BE CLOBBERED BY BAD LOANS AND PROBLEMS WITH
ASSETS LEASED TO COMPANIES HURT BY THE DOWNTURN

FACED WITH A SHRINKING DEFENSE MARKET GE RECENTLY MOVED QUICKLY TO SHED ITS
AEROSPACE DIVISION IN AN 18 BILLION TRANSACTION EVEN THOUGH THE UNIT WAS
PRODUCING GOOD RESULTS IT'S THESE SORTS OF TIMELY RESPONSES THAT HAVE
ANALYSTS SINGING THE PRAISES OF GE

THE CONTRAST BETWEEN GE'S PERFORMANCE OVER THE LAST YEAR OR TWO AND SOME
OTHER BLUECHIP COMPANIES IS STRIKING SAYS RUSSELL LEAVITT AN ANALYST AT
SALOMON BROTHERS HE IS ONE OF A NUMBER OF ANALYSTS WHO ARE RECOMMENDING GE
STOCK AS A BUY DESPITE ITS RECENT GAINS WITH THE STOCK TRADING AT LESS THAN
16 TIMES REPORTED PERSHARE EARNINGS IT'S STILL AT A DISCOUNT TO THE
OVERALL MARKET AND WE EXPECT THE DISCOUNT TO SHRINK FURTHER HE SAYS WE
BELIEVE THAT THE COMPANY INCREASINGLY IS FOCUSING ON GROWING EARNINGS AND
IMPROVING ITS PRICETOEARNINGS VALUATION

ANALYSTS SAY GE IS LIKELY TO POST SIGNIFICANT EARNINGS GAINS AS ITS CYCLICAL
BUSINESSES MAJOR APPLIANCES PLASTICS LIGHTING FOR INSTANCE EMERGE
FROM RECESSION BASED IN FAIRFIELD CONN GE ALSO MAKES MEDICAL EQUIPMENT
POWER GENERATION EQUIPMENT JET ENGINES AND OWNS THE NBC TELEVISION
BUSINESS GE'S CURRENT AGGRESSIVE EFFORT TO EXPAND ABROAD ARE ALSO SEEN AS
ADDING TO GROWTH IN THE NEAR FUTURE LAST YEAR GE EARNED 510 A SHARE
BEFORE AN ACCOUNTING CHANGE ANALYSTS' ESTIMATES FOR 1992 PERSHARE EARNINGS
ARE 550 TO 560 WITH 1993 ESTIMATES AT 590 TO 635

TO BE SURE GE'S SECOND DIVIDEND INCREASE THIS YEAR IN NOVEMBER AS WELL AS
THE AEROSPACE DIVISION SALE ALREADY HAVE BOLSTERED THE STOCK HOWEVER WITH
A STOCK PRICE THAT IS LESS THAN 16 TIMES EARNINGS COMPARED WITH A
PRICE/EARNINGS RATIO OF 20 TO 1 FOR LARGE COMPANIES AS A GROUP GE'S STOCK
STILL SEEMS A GOOD BUY TO MANY AS INVESTORS ARE TAKING MONEY OUT OF IBM
THEY'RE LOOKING AT GE AND SAYING IT'S A CHEAP STOCK SAYS SURESH BHIRUD OF
BHIRUD ASSOCIATES INC A MONEY MANAGEMENT AND ADVISORY COMPANY HE WOULD
SELECT GE NOT FOR A QUICK PROFIT BUT AS A STOCK TO GROW AT A MODERATE PACE
THAT'S SAFE AND STEADY 9301070074 930107 QUARTERLY MUTUAL FUNDS REVIEW
 INVESTORS IN '92 BOUGHT 176 BILLION OF IPOS OF CLOSEDEND FUNDS

NEW YORK INVESTORS SNAPPED UP A RECORD 176 BILLION OF INITIAL PUBLIC
OFFERINGS OF CLOSEDEND INVESTMENT FUNDS IN 1992 FAR AHEAD OF THE 95
BILLION PURCHASED IN 1991 ACCORDING TO LIPPER ANALYTICAL SERVICES INC

THE PREVIOUS ANNUAL RECORD WAS 171 BILLION SET IN 1990

CLOSEDEND FUNDS LIKE ORDINARY OPENEND MUTUAL FUNDS ARE MANAGED POOLS OF
INVESTMENTS THAT SELL SHARES TO SMALL INVESTORS BUT UNLIKE REGULAR MUTUAL
FUNDS THE SHARES OF CLOSEDENDS ARE PUBLICLY TRADED

THERE ARE SIGNS THAT THE NEWISSUE FRENZY MAY BE STRAINING ITS LIMITS THE
SIZE OF THE AVERAGE NEW ISSUE DECLINED TO 174 MILLION FOR 1992 FROM 216
MILLION IN 1991

FOR THE FOURTH QUARTER THE VOLUME OF NEW CLOSEDEND FUND ISSUES INCREASED
TO 39 BILLION FROM 31 BILLION IN THE YEAREARLIER QUARTER BUT THE
AVERAGE SIZE OF EACH NEW ISSUE FELL TO 123 MILLION FROM 170 MILLION

LAST YEAR 101 CLOSEDEND FUNDS WENT PUBLIC MUNICIPAL BOND FUNDS
CONSTITUTED THE MAJORITY WITH 68 ISSUES RAISING 103 BILLION THE NEW
MUNICIPAL BOND FUNDS TENDED TO INVEST IN THE TAXEXEMPT BONDS OF A SINGLE
STATE OR INSURED BONDS OR TO LEVERAGE THEIR PORTFOLIOS WITH PREFERRED
STOCK

SOME 62 BILLION WAS RAISED IN 21 TAXABLE BOND FUND IPOS MANY OF THE
TAXABLE BOND FUNDS INVESTED IN MORTGAGEBACKED SECURITIES SOME INVESTED IN
FOREIGN BONDS

NEW STOCK FUNDS RAISED MORE THAN 11 BILLION IN 12 ISSUES 9301070073
930107 BUSINESS BRIEF BELL ATLANTIC CORP CONCERN US ORDER TEAM UP 
TO OFFER VARIOUS SERVICES

BELL ATLANTIC CORP PHILADELPHIA SAID IT IS TEAMING UP WITH US ORDER TO
OFFER TELEPHONE CUSTOMERS IN THE WASHINGTON DC AREA CONSUMER SERVICES
SUCH AS BILL PAYING BANKING AND GROCERY AND CATALOG SHOPPING VIA PHONE

TELEPHONE CUSTOMERS USE A SPECIAL TELEPHONE WITH A SMALL SCREEN A CREDIT
CARD SWIPE DEVICE AND A LIGHT PEN THAT SCANS BAR CODES IN CATALOGS THE
SERVICE COSTS 1195 A MONTH THE PHONE COMPANY SAID US ORDER A PROVIDER
OF CONSUMER SERVICES VIA PHONE LINES IS AN AFFILIATE OF WORLDCORP A
CONTRACT AIR TRANSPORT SERVICES COMPANY BELL ATLANTIC PROVIDES LOCAL
TELEPHONE SERVICE IN THE MIDATLANTIC REGION 9301070072 930107 QUARTERLY
MUTUAL FUNDS REVIEW LATECOMERS TO SMALLSTOCK RALLY NEED CARE IN
BOARDING BANDWAGON  BY JONATHAN CLEMENTS STAFF REPORTER OF THE
WALL STREET JOURNAL

NEW YORK THE SMALLSTOCK RALLY IS IN ITS THIRD YEAR BUT SOME MUTUAL FUND
INVESTORS ARE ONLY NOW JUMPING ON THE BANDWAGON

THESE LATECOMERS SHOULD PICK THEIR FUNDS CAREFULLY SAY MUTUAL FUND EXPERTS
THEIR ADVICE MAKE SURE YOU BUY SMALLCOMPANY STOCK FUNDS THAT OWN A BROAD
ARRAY OF STOCKS

WHY ON AVERAGE SMALLSTOCK FUNDS ARE UP SOME 94 SINCE THE MARKET LOWS OF
OCTOBER 1990 BUT MUTUAL FUND PERFORMANCE HAS BEEN PATCHY WITH DIFFERENT
TYPES OF SMALLSTOCK FUNDS DOING WELL AT DIFFERENT TIMES

FOR PROOF CONSIDER FUND PERFORMANCE IN THE PAST TWO YEARS SMALLSTOCK
FUNDS SOARED AN AVERAGE 509 IN 1991 AND AN ADDITIONAL 125 LAST YEAR BUT
FEW FUNDS WERE AMONG THE TOP PERFORMERS IN BOTH YEARS THE TOP PERFORMERS OF
1991 THOSE THAT POSTED RETURNS IN EXCESS OF THE 509 AVERAGE GAINED
JUST 78 LAST YEAR CONVERSELY 1991'S LAGGARDS THOSE THAT RETURNED LESS
THAN 509 WERE UP 149 IN 1992

WHY THIS FLIPFLOP IN PERFORMANCE THE PERFORMANCE LEADERS IN 1991 WERE
MOSTLY GROWTHSTOCK FUNDS WHICH INVEST IN COMPANIES WITH RAPIDLY INCREASING
EARNINGS BUT IN 1992 THE EDGE WENT TO VALUE FUNDS WHICH STRIVE TO FIND
COMPANIES THAT ARE TRADING AT BARGAIN PRICES COMPARED WITH THEIR CORPORATE
ASSETS OR CURRENT EARNINGS

BECAUSE SMALLSTOCK FUND PERFORMANCE HAS BEEN SO INCONSISTENT FUND ANALYSTS
RECKON INVESTORS WILL FIND IT LESS NERVEWRACKING IF THEY EITHER BUY A
SINGLE FUND THAT OWNS A BROAD MIX OF STOCKS OR BUY A COUPLE OF FUNDS THAT
SPECIALIZE IN DIFFERENT SEGMENTS OF THE SMALLSTOCK MARKET

FOR INSTANCE KENNETH GREGORY EDITOR OF SAN FRANCISCO NEWSLETTER L/G
NOLOAD FUND ANALYST THINKS THE ECONOMY WILL REMAIN SLUGGISH WHICH SHOULD
LEAD INVESTORS TO FAVOR GROWTH STOCKS BUT MR GREGORY ISN'T BETTING WHOLLY
ON GROWTHSTOCK FUNDS I WOULD PROBABLY GO WITH MORE OF A MIX AT THIS
STAGE HE SAYS

MR GREGORY DIVIDES SMALLSTOCK FUNDS INTO THREE CAMPS VALUE FUNDS
CONSERVATIVE GROWTH FUNDS AND EMERGING GROWTH FUNDS THE LATTER SPECIALIZE
IN FASTGROWING SECTORS SUCH AS TECHNOLOGY AND HEALTH CARE

MR GREGORY SUGGESTS BUYING ONE FUND FROM EACH CATEGORY HIS CURRENT PICKS
ROBERTSON STEPHENS EMERGING GROWTH FUND WHICH INVESTS IN EMERGING GROWTH
STOCKS STRONG COMMON STOCK FUND A CONSERVATIVE GROWTH FUND AND MUTUAL
DISCOVERY FUND A NEW SMALLSTOCK VALUE FUND MANAGED BY MICHAEL PRICE MR
PRICE IS BEST KNOWN AS THE MANAGER OF MUTUAL SHARES A TOPPERFORMING MUTUAL
FUND

NEWCOMERS TO THE SMALLSTOCK ARENA MAY WANT TO STEER CLEAR OF EMERGING
GROWTH FUNDS SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A
CHICAGO NEWSLETTER EMERGING GROWTH IS REALLY A DICEY AREA SAYS MR
PHILLIPS IF YOU'VE WAITED THIS LONG TO GET INTO THE SMALLCAP ARENA I'M
MAKING THE ASSUMPTION THAT YOU'RE A MORE CONSERVATIVE INVESTOR

INSTEAD HE SUGGESTS BUYING A SMALLSTOCK FUND THAT BLENDS TOGETHER BOTH
GROWTH AND VALUE STOCKS AMONG FUNDS THAT FALL INTO THIS CAMP ARE DREYFUS
NEW LEADERS FUND FASCIANO FUND MONETTA FUND AND STRONG COMMON STOCK FUND
THESE FUNDS HAVE TENDED TO DO REASONABLY WELL IN BOTH 1991 AND 1992

GERALD PERRITT EDITOR OF MUTUAL FUND LETTER A CHICAGO NEWSLETTER NOTES
THAT THERE IS ANOTHER SET OF FUNDS THAT DID WELL IN BOTH 1991 AND 1992 
SMALLSTOCK INDEX FUNDS INDEX FUNDS BUY THE STOCKS THAT COMPRISE A STOCK
MARKET INDEX AND THEREBY HOPE TO REPLICATE THE INDEX'S PERFORMANCE

WHILE GROWTH AND VALUE FUNDS HAVE HAD PATCHY RESULTS SMALLSTOCK INDEX
FUNDS HAVE SHOWN MORE PERFORMANCE CONSISTENCY VANGUARD SMALL CAPITALIZATION
STOCK FUND WHICH TRACKS THE RUSSELL 2000STOCK INDEX RETURNED 453 IN
1991 AND 182 LAST YEAR VANGUARD EXTENDED MARKET PORTFOLIO WHICH BUYS THE
STOCKS IN THE WILSHIRE 4500 INDEX GAINED 419 IN 1AND 125 IN 1992

MR PERRITT'S ADVICE I WOULD RECOMMEND SPLITTING YOUR MONEY THREE WAYS
HE SAYS TAKE A THIRD AND GO WITH ONE OF THE AGGRESSIVE FUNDS TAKE A THIRD
AND GO WITH ONE OF THE VALUE FUNDS AND TAKE A THIRD AND GO WITH ONE OF THE
INDEX FUNDS

HE RECOMMENDS THE AGGRESSIVE FOUNDERS DISCOVERY FUND THE VALUEORIENTED T
ROWE PRICE SMALLCAP VALUE FUND AND VANGUARD SMALL CAPITALIZATION STOCK
FUND AN INDEX FUND

MR PERRITT IS OPTIMISTIC ABOUT THE PROSPECT FOR SMALLCOMPANY STOCKS HE
RECKONS THE RALLY WILL LAST DEFINITELY ANOTHER YEAR AND PERHAPS AS LONG AS
THREE YEARS ONCE SOMETHING IS HOT IT TENDS TO STAY HOT AS INVESTORS JUMP
ON BOARD

BUT WHATEVER MUTUALFUND STRATEGY YOU ADOPT DON'T EXPECT INSTANT
GRATIFICATION WARNS PETER SCHLIEMANN MANAGER OF THE BABSON ENTERPRISE
FUND YOU GET A LITTLE WORRIED THAT PEOPLE ARE CLAMBERING ON THE BANDWAGON
NEAR THE END OF THE GAME HE SAYS YOU'VE GOT TO TAKE A LONGTERM
APPROACH

THE NOLOAD FUNDS LISTED BELOW HAVE RETURNED AT LEAST 85 DURING THE CURRENT
SMALLSTOCK RALLY WHICH BEGAN IN LATE 1990 9301070071 930107 BUSINESS
BRIEF VINTAGE PETROLEUM INC PURCHASE OF ARCO PROPERTIES IS
COMPLETED AT LOWER PRICE

VINTAGE PETROLEUM INC TULSA OKLA SAID IT COMPLETED ITS PURCHASE OF
CERTAIN PROPERTIES FROM ATLANTIC RICHFIELD CO FOR 765 MILLION

THE NEW PRICE LOWER THAN THE PREVIOUSLY ANNOUNCED 90 MILLION RESULTED
FROM CERTAIN ADJUSTMENTS TAKEN FOR THE JULY 1 EFFECTIVE DATE OF THE SALE

THE PROPERTIES ACQUIRED LOCATED IN KERN AND VENTURA COUNTIES IN CALIFORNIA
HAVE RESERVES OF ABOUT 239 MILLION BARRELS OF OIL EQUIVALENT WITH THIS
PURCHASE VINTAGE'S YEAREND RESERVES INCREASED 60

IN ADDITION THE TRANSACTION CALLS FOR VINTAGE TO HAVE ACCESS TO ATLANTIC
RICHFIELD'S GEOPHYSICAL DATABASE AND SEISMIC SURVEYS RELATING TO SPECIFIC
CALIFORNIA ACREAGE ALSO ARCO AND VINTAGE WILL JOINTLY PARTICIPATE IN AT
LEAST NINE WELLS OVER A THREEYEAR PERIOD 9301070070 930107 BUSINESS
BRIEF PLAYERS INTERNATIONAL INC PACT IS SIGNED TO DEVELOP OPERATE
A RIVERBOAT CASINO

PLAYERS INTERNATIONAL INC SAID IT SIGNED A LETTER OF INTENT WITH CLOSELY
HELD JEBACO INC FOR A 23 MILLION JOINT VENTURE TO DEVELOP AND OPERATE A
RIVERBOAT GAMBLING CASINO IN LAKE CHARLES LA

PLAYERS INTERNATIONAL A GAMING AND ENTERTAINMENT CONCERN BASED IN
CALABASAS CALIF SAID THE AGREEMENT CALLS FOR IT TO RAISE 75 OF THE
VENTURE'S FINANCING AND FOR JEBACO TO RAISE THE REMAINDER

THE PROPOSED PADDLEWHEELER WILL ACCOMMODATE MORE THAN 1400 PASSENGERS
PLAYERS SAID THE VENTURE INCLUDES AN OPTION FOR THE LONGTERM LEASE OF A
HOTEL FOR SHORE FACILITIES THE AGREEMENT IS SUBJECT TO APPROVAL OF
LOUISIANA GAMING AUTHORITIES AMONG OTHER THINGS 9301070069 930107
MARKETING & MEDIA TOPSELLING ALBUMS IN '92 SHOWED A COUNTRY FLAVOR

NEW YORK GARTH BROOKS SOLD MORE RECORDS IN 1992 THAN ANYBODY ELSE BUT HE
STILL DIDN'T RATE THE TOPSELLING ALBUM THAT HONOR WENT TO PONYTAILED
COUNTRY NEWCOMER BILLY RAY CYRUS WHOSE ALBUM SOME GAVE ALL SOLD 48
MILLION COPIES

SALES FIGURES RELEASED BY SOUNDSCAN INC THE HARTSDALE NY COMPANY WHOSE
DATA ARE USED IN BILLBOARD CHARTS SHOW THAT MR BROOKS SOLD NEARLY 12
MILLION UNITS LAST YEAR BUT THE TOTAL WAS SPREAD ACROSS FOUR ALBUMS THREE
OF WHICH WERE IN THE TOP 10 THE FOURTH A CHRISTMAS ALBUM RANKED NO 29

IN ADDITION TO THOSE HEAVYHITTING COUNTRY STARS THE TOP 10 INCLUDED THE
SOUNDTRACK FOR THE MOVIE THE BODYGUARD AND A STRONG DOSE OF HARD ROCK
PEARL JAM AND NIRVANA TWO GRUNGE BANDS FROM THE SEATTLE AREA CAME IN AT
NO 4 AND NO 8 RESPECTIVELY ESTABLISHED HEAVYMETAL ACTS METALLICA AND
DEF LEPPARD WERE NO 9 AND 10 FOUR OF THE TOP 10 ALBUMS WERE BY NEWCOMERS

THE NUMBERS CONFIRMED THE SPREAD OF COUNTRY MUSIC'S POPULARITY SAID MICHAEL
SHALET PRESIDENT OF SOUNDSCAN I THINK NASHVILLE HAS DONE A GREAT JOB IN
REPACKAGING COUNTRY MUSIC TO MAKE IT MORE CONTEMPORARY AT A TIME WHEN
LISTENERS ARE GETTING BORED WITH MOST RADIO FORMATS SAID MR SHALET
9301070068 930107 NATIONSBANK GIVES RETIREMENT PLANNING AN ADDED
WRINKLE  HOLDERS OF START' CREDIT CARD WILL GET PURCHASE REBATES 
TO BE APPLIED TO ANNUITY  BY MARTHA BRANNIGAN STAFF REPORTER OF
THE WALL STREET JOURNAL

USE YOUR CREDIT CARD TO SAVE FOR RETIREMENT THAT'S THE CONCEPT BEHIND A NEW
CREDIT CARD UNVEILED YESTERDAY BY NATIONSBANK CORP

IN ONE OF THE MOST AGGRESSIVE MOVES YET IN THE ESCALATING WAR BETWEEN CREDIT
CARD ISSUERS THE CHARLOTTE NC BANKING GIANT HAS FORMED AN ALLIANCE WITH
START INC A HERNDON VA MARKETING CONCERN THAT PATENTED THE SOCALLED
FREQUENT SAVER IDEA

UNDER THE PROGRAM HOLDERS OF A NEW NATIONSBANK START CARD AVAILABLE IN
EITHER MASTERCARD OR VISA WILL RECEIVE REBATES RANGING FROM 05 TO 7 ON
PURCHASES TO BE SET ASIDE IN AN ANNUITY FOR RETIREMENT

FOR NATIONSBANK WHICH IS THE NATION'S FOURTHLARGEST BANK AND THE
NINTHLARGEST CREDIT CARD ISSUER THE MOVE IS AN EFFORT TO DISTINGUISH ITS
PLASTIC FROM THE INCREASINGLY FULL DECK OF OTHER CARDS CONSUMERS HAVE AT
THEIR DISPOSAL AMERICANS ARE OVERSATURATED WITH PLASTIC OPPORTUNITIES AND
THE NAME OF THE GAME IS DIFFERENTIATION SAID DAVID ROBERTSON PRESIDENT OF
THE NILSON REPORT A SANTA MONICA CALIF CREDIT CARD INDUSTRY NEWLETTER
WHO PREDICTS THAT NATIONSBANK'S VAST 1800OFFICE NETWORK AND DIRECT
CUSTOMER RELATIONSHIPS WILL GIVE IT A STRONG CHANCE OF SUCCEEDING WITH THE
ANNUITY CONCEPT

WITHIN THE PAST FOUR MONTHS GENERAL MOTORS CORP AND GENERAL ELECTRIC CO
HAVE LEAPT INTO THE CROWDED CREDIT CARD FRAY WITH CARDS THAT OFFER DISCOUNTS
AND REBATES ON A VARIETY OF PURCHASES SUCH NONBANK CARD ISSUERS HAVE BEEN
GRABBING MARKET SHARE FROM BANKS SO THAT NOW EIGHT OF THE TOP 20 BANKCARD
ISSUERS ARE NONBANK COMPANIES

START WHICH HAS BEEN IN OPERATION FOR ABOUT A YEAR AND CHARGES A 25
MEMBERSHIP FEE CURRENTLY HAS AGREEMENTS WITH 20 COMPANIES INCLUDING MCI
COMMUNICATIONS CORP HERTZ CORP SPIEGEL INC AND CLUB MEDITERRANEE THAT
PUT ASIDE ANNUITY CONTRIBUTIONS FOR CLUB MEMBERS OF BETWEEN 1 AND 6
DEPENDING ON THE SIZE OF A PURCHASE LARRY ANDREINI START'S CHAIRMAN SAID
NEGOTIATIONS ARE UNDER WAY TO ADD MORE THAN 30 OTHER CONCERNS INCLUDING
GASOLINE COMPANIES DEPARTMENT STORES AND HOTELS TO ITS LIST WHICH HE
PREDICTS WILL GROW TO HUNDREDS OVER THE NEXT SEVERAL YEARS

NATIONSBANK WILL KICK IN 05 FOR ANY PURCHASES MADE WITH ITS 139
VARIABLERATE CARD AND 1 FOR THOSE MADE WITH ITS 169 FIXEDRATE CARD 
REGARDLESS OF WHETHER THE MERCHANT IS A PARTICIPATING CONCERN PROCEEDS WILL
BE FUNNELED INTO A FIXEDRATE ANNUITY ISSUED BY METROPOLITAN LIFE INSURANCE
CO OF NEW YORK

THE PARTIES SAID THE PROGRAM TARGETS BABY BOOMERS MANY PEOPLE KNOW THEY
SHOULD BE SAVING FOR RETIREMENT BUT FIND IT DIFFICULT TO DO SO SAID
KENNETH LEWIS NATIONSBANK'S GENERAL BANK PRESIDENT

CONSUMER ADVOCATES SAID THE VALUE OF THE CREDIT CARD WOULD DEPEND IN PART ON
HOW IT IS USED CONSUMERS WHO PAY OFF THEIR BALANCES EACH MONTH MAY BENEFIT
FROM SUCH A CARD ACCORDING TO GERRI DETWEILER EXECUTIVE DIRECTOR OF
BANKCARD HOLDERS ASSOCIATION OF AMERICA A CONSUMER GROUP ALSO BASED IN
HERNDON VA BUT THOSE WHO CARRY OVER DEBT ARE BEST SERVED BY SEEKING OUT
THE LOWEST INTEREST RATE

A LOT OF COMPANIES ARE COMING UP WITH GIMMICKS TO TRY TO DIFFERENTIATE
THEMSELVES IN A VERY CROWDED MARKET SAYS MS DETWEILER IT'S IMPORTANT
FOR CONSUMERS TO CONSIDER WHAT'S A REASONABLE INTEREST RATE 9301070067
930107 TECHNOLOGY & HEALTH INTEGRA INC DEVELOPS SYSTEM TO ASSESS 
EFFECTIVENESS OF PSYCHIATRIC TREATMENT  BY RON WINSLOW STAFF
REPORTER OF THE WALL STREET JOURNAL

A MENTALHEALTH SERVICES COMPANY SAYS IT HAS TAKEN AN IMPORTANT STEP IN THE
EFFORT TO DEVELOP OBJECTIVE METHODS TO ASSESS THE QUALITY AND
COSTEFFECTIVENESS OF TREATMENTS FOR MENTAL DISORDERS

INTEGRA INC RADNOR PA PLANS TO INTRODUCE TODAY A SYSTEM TO TRACK THE
PROGRESS OF OUTPATIENT PSYCHIATRIC TREATMENT AND TO MEASURE THE
EFFECTIVENESS OF THERAPISTS INTEGRA SAYS THAT AMONG OTHER THINGS THE SYSTEM
CAN PREDICT WITHIN FOUR SESSIONS WHETHER A COURSE OF TREATMENT IS LIKELY TO
SUCCEEDENABLING HEALTH COST MANAGERS CLINICIANS AND PATIENTS TO REVISE
THERAPEUTIC STRATEGIES BEFORE RUNNING UP BIG BILLS FOR CARE THAT DOESN'T
WORK

THE SYSTEM BASED ON RESEARCH BY NORTHWESTERN UNIVERSITY PSYCHOLOGIST
KENNETH HOWARD REFLECTS THE EFFORT BY MENTALHEALTH COMPANIES TO DEVELOP
EVIDENCE OF THE EFFECTIVENESS OF THEIR SERVICES AS WELL AS INTEREST AMONG
CORPORATE HEALTH COST MANAGERS IN DATA THAT SHOW WHETHER THE CARE THEY PAY
FOR WORKS

IF WE HAVE THE CORRECT TREATMENT PATTERNS THEN WE'LL HAVE A HANDLE ON OUR
COSTS SAYS ROBERT DUFF CORPORATE DIRECTOR COMPENSATION AND BENEFITS AT
EASTMAN KODAK CO'S STERLING WINTHROP INC UNIT STERLING BEGAN USING THE
SYSTEM JAN 1 BUT EXPECTS IT WILL TAKE AT LEAST SIX MONTHS TO DETERMINE
WHETHER IT SUCCESSFULLY HELPS MANAGE PSYCHIATRIC COSTS

INTEGRA HAS DEVELOPED A MENTAL HEALTH INDEX THAT AMOUNTS TO A NUMERICAL
SCORE OF A PERSON'S WELLBEING SYMPTOM SEVERITY AND ABILITY TO FUNCTION IN
FAMILY SOCIAL AND WORK SETTINGS THE SCORE ON A SCALE OF ZERO TO 100 IS
DETERMINED BY A DETAILED PATIENT QUESTIONNAIRE THE INITIAL SCORE
ESTABLISHES THE SEVERITY OF A PATIENT'S CONDITION WHEN TREATMENT BEGINS THE
QUESTIONNAIRE IS REDONE INTERVALS DURING TREATMENT TO TRACK IMPROVEMENT

A PATIENT'S PROGRESS IS COMPARED WITH NORMS DERIVED FROM THE EXPERIENCE OF
HUNDREDS OF OTHER PATIENTS SAYS PETER L BRILL INTEGRA'S CHIEF EXECUTIVE
OFFICER THAT EXPERIENCE DR HOWARD SAYS INDICATES THAT PEOPLE UNDERGOING
PSYCHOTHERAPY FOR DEPRESSION ANXIETY AND OTHER DISORDERS GENERALLY SHOW A
MARKED IMPROVEMENT IN THEIR INDEX SCORES WITHIN FOUR TREATMENT SESSIONS A
PERSON WHO HASN'T SHOWN SIGNIFICANT IMPROVEMENT BY THEN SAYS DR HOWARD
PROBABLY WON'T IMPROVE WITH THAT THERAPIST OR TREATMENT STRATEGY

THE PROGRAM INCLUDES A WAY TO DETERMINE EARLY IN TREATMENT WHETHER THE
PATIENT AND THERAPIST ARE A GOOD MATCH AN IMPORTANT FACTOR IN SUCCESSFUL
THERAPY AND IT ENABLES HEALTH COST MANAGERS TO JUDGE THE EFFECTIVENESS OF
THERAPISTS BY CALCULATING HOW MUCH IT COSTS FOR THEM TO INCREASE THEIR
PATIENTS' MENTALHEALTH SCORES THE REAL MEASURE IS IMPROVEMENT PER
DOLLAR SAYS DR BRILL

INTEGRA'S USE OF PATIENTREPORTED DATA REFLECTS A GROWING BELIEF AMONG
RESEARCHERS THAT SUCH PERSONAL ASSESSMENTS ARE CREDIBLE TOOLS FOR MEASURING
WHAT ARE CONSIDERED SUBJECTIVE CONDITIONS ANOTHER PATIENT QUESTIONNAIRE
KNOWN AS THE SF36 HAS PROVEN RELIABLE IN ASSESSING PATIENT WELLBEING AND
LIFE FUNCTIONING

NATIONAL COMPUTER SYSTEMS MINNETONKA MINN ALSO SELLS A TRACKING SYSTEM
FOR MENTALHEALTH TREATMENT BASED ON ESTABLISHED DIAGNOSTIC PATIENT
QUESTIONNAIRES THAT WEREN'T GENERALLY USED TO MONITOR THE PROGRESS OF
THERAPY THE INSTRUMENTS AMOUNT TO LABORATORY TESTS FOR MENTAL HEALTH
SAYS DENNIS MORRISON DIRECTOR OF BUSINESS DEVELOPMENT UNTIL THE PRESSURE
WAS APPLIED BY PAYERS TO DEMONSTRATE THAT WHAT YOU'RE DOING WORKS THERE WAS
NO NEED TO MEASURE CLINICAL CHANGE 9301070066 930107 CHRYSLER PLANS
STATEMENT BY MARCH ON CREDIT CARD

DETROIT CHRYSLER CORP WILL ANNOUNCE BY THE END OF MARCH WHETHER IT WILL
LAUNCH ITS OWN CREDIT CARD THEODOR R CUNNINGHAM CHRYSLER'S EXECUTIVE VICE
PRESIDENT FOR MARKETING SAID

CHRYSLER IS CONSIDERING AN AFFILIATION CREDIT CARD IN THE WAKE OF GENERAL
MOTORS CORP'S SUCCESSFUL LAUNCH OF A MASTERCARD LAST SEPTEMBER GM OFFERED
LIMITED REBATES ON CAR PURCHASES AND SIGNED UP A MILLION CONSUMERS WITHIN A
MONTH MAKING THE LAUNCH ONE OF THE CREDIT CARD INDUSTRY'S MOST SUCCESSFUL

MR CUNNINGHAM SAID A CREDIT CARD IS AN ATTRACTIVE MARKETING OPTION BUT
HE DECLINED TO PROVIDE SPECIFICS ABOUT A POSSIBLE CHRYSLER CARD SAYING ONLY
THAT WERE CHRYSLER TO FOLLOW IN GM'S FOOTSTEPS IT WOULD TAKE A MORE
CREATIVE APPROACH

MR CUNNINGHAM SPOKE WITH REPORTERS AT DETROIT'S AUTO SHOW AFTER HE UNVEILED
CHRYSLER'S NEW NEW YORKER AND LHS LUXURY MODELS WHICH ARE TO BE PRICED
BETWEEN 25000 AND 30000 THE SEDANS ARE LONGER ROOMIER VERSIONS OF THE
CONCORDE INTREPID AND VISION SEDANS

PRODUCTION OF THE TWO LUXURY SEDANS BEGINS IN FEBRUARY AT CHRYSLER'S
BRAMALEA ONTARIO PLANT

CHRYSLER STOCK ROSE 3 YESTERDAY TO CLOSE AT 36125 IN NEW YORK STOCK
EXCHANGE COMPOSITE TRADING ROBERT A LUTZ CHRYSLER'S PRESIDENT ATTRIBUTED
THE RISE TO THE UNVEILING THIS WEEK OF THE COMPANY'S NEW FULLSIZE PICKUP
TRUCK 9301070065 930107 WHO'S NEWS OGLEBAY NORTON CO

OGLEBAY NORTON CO CLEVELAND STUART H THEIS 50 YEARS OLD FORMERLY
VICE PRESIDENT ENERGY RESOURCES AND SPECIAL PROJECTS AT MA HANNA CO A
CLEVELAND SPECIALTY CHEMICALS COMPANY WAS NAMED ASSISTANT TO THE PRESIDENT
AT THIS RAW MATERIALS AND MARINE TRANSPORTATION CONCERN MR THEIS WHO IS
FILLING A POST THAT HAS BEEN VACANT FOR ABOUT FOUR YEARS WILL DIRECT
SPECIAL PROJECTS FOR THE COMPANY A SPOKESMAN SAID 9301070064 930107
CABLEVISION'S DOLAN FIGHTS IRS CLAIMS OF 234 MILLION

NEW YORK CABLEVISION SYSTEMS CORP'S FOUNDER AND CHAIRMAN CHARLES DOLAN
IS FIGHTING INTERNAL REVENUE SERVICE CLAIMS THAT HE OWES ABOUT 234 MILLION
IN BACK INCOME TAXES AND FINES

THE IRS CONTENDS THAT MR DOLAN THROUGH FAMILY TRUSTS AND BUSINESS
DEALINGS OWES ABOUT 180 MILLION IN TAXES FOR 1984 AND FOR 1986 THROUGH
1988 AND ROUGHLY 54 MILLION IN PENALTIES

THEY'RE ARBITRARY UNREASONABLE ASSESSMENTS COUNTERED BRUCE HAIMS MR
DOLAN'S ATTORNEY OF THE FIRM DEBEVOISE & PLIMPTON IN NEW YORK WE ARE
VIGOROUSLY CONTESTING THIS

MR HAIMS SAID ANY RESULTING TAX LIABILITIES WON'T AFFECT CABLEVISION AND
INVOLVE MOSTLY PERSONAL TRANSACTIONS IN CABLE TV PARTNERSHIPS IN CLAIMS
FILED IN US TAX COURT IN WASHINGTON THE IRS CITES TAX LIABILITIES OF MR
DOLAN INVOLVING TRANSACTIONS THROUGH WHICH CABLEVISION WENT PRIVATE IN 1984
AND PUBLIC IN 1986 THE SUIT WAS FILED AFTER THE TWO PARTIES FAILED TO
RESOLVE THE DISPUTE

CABLEVISION BASED IN WOODBURY NY IS THE FOURTHLARGEST CABLE OPERATOR
IN THE NATION WITH SYSTEMS REACHING 17 MILLION HOMES 9301070063 930107
TECHNOLOGY US RUSSIA TO COLLABORATE ON ATOMSMASHER IN TEXAS

WASHINGTON AP THE US AND RUSSIA FORMALLY AGREED TO COLLABORATE ON
CONSTRUCTION OF THE CONTROVERSIAL 82 BILLION ATOMSMASHER IN TEXAS

RUSSIAN SCIENTISTS WILL ASSIST IN THE DESIGN ENGINEERING AND PRODUCTION OF
TWO OF THE COLLIDER'S BOOSTER ACCELERATORS AS WELL AS ITS EXPERIMENTAL
DETECTORS

WITH THE ATOMSMASHER SCIENTISTS WILL ACCELERATE BEAMS OF SUBATOMIC
PARTICLES NEARLY TO THE SPEED OF LIGHT THROUGH THE COLLIDER'S 54MILE
UNDERGROUND TUNNEL BY SENDING THE PROTON STREAMS AROUND THE RING IN
OPPOSITE DIRECTIONS AND OBSERVING THE COLLISIONS THEY HOPE TO DISCOVER NEW
PARTICLES AND LEARN MORE ABOUT THE ORIGIN AND NATURE OF MATTER

THROUGH THE COLLABORATION THE US WILL OBTAIN AS MUCH AS 200 MILLION OF
RUSSIAN HARDWARE AT ABOUT HALF THE COST RUSSIA FOR ITS PART WILL RECEIVE
AS MUCH AS 100 MILLION AT A TIME WHEN ITS FALTERING ECONOMY IS BADLY IN
NEED OF FOREIGN CURRENCY AND ITS SCIENTISTS WILL HAVE ACCESS TO THE
COLLIDER TOUTED AS THE WORLD'S LARGEST SCIENTIFIC INSTRUMENT

A NUMBER OF OTHER COUNTRIES ALSO ARE PARTICIPATING IN THE COLLIDER PROJECT

IN JUNE THE HOUSE STRIPPED FEDERAL FUNDING FOR THE COSTLY COLLIDER AFTER A
MASSIVE LOBBYING EFFORT IN THE SENATE FUNDING WAS RESTORED 9301070061
930107 BUSINESS BRIEF HOTEL INVESTORS TRUST DEBT PACT GAINS PRESIDENT
 OF SISTER COMPANY RESIGNS

HOTEL INVESTORS TRUST SAN DIEGO SAID IT MOVED A STEP CLOSER TO COMPLETING
ITS 128 MILLION DEBT RESTRUCTURING AND DISCLOSED THAT THE PRESIDENT OF ITS
SISTER COMPANY RESIGNED

RONALD A YOUNG STEPPED DOWN AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF
HOTEL INVESTORS CORP TO PURSUE OTHER BUSINESS INTERESTS SHARES OF THE
REAL ESTATE INVESTMENT TRUST ARE PAIRED FOR TRADING WITH THOSE OF HOTEL
INVESTORS CORP A HOTEL MANAGEMENT CONCERN

UNDER THE RESTRUCTURING AGREEMENT WITH THE TRUST'S UNSECURED INSTITUTIONAL
LENDERS THE TRUST AND THE MANAGEMENT COMPANY WILL MERGE AND KEEP ONE SET OF
OFFICERS SAID A SPOKESMAN FOR THE TRUST THE RESTRUCTURING IS SET FOR
COMPLETION JAN 28 SUBJECT TO CONDITIONS

KEVIN MALLORY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF HOTEL
INVESTORS CORP WILL ASSUME MR YOUNG'S DUTIES THE SPOKESMAN SAID JEFFREY
LAPIN PRESIDENT AND CHIEF EXECUTIVE OF THE TRUST IS EXPECTED TO EVENTUALLY
HEAD THE MERGED COMPANY 9301070060 930107 AIRBUS DENIES IT HAS BEEN CUT
 FROM JET TALKS  BUT BOEING OFFICIALS SAY DISCUSSIONS HAVE BEEN 
WITH 3 MEMBER FIRMS  BY JEFF COLE AND BRIAN COLEMAN STAFF
REPORTERS OF THE WALL STREET JOURNAL

A TOP OFFICIAL OF EUROPE'S AIRBUS INDUSTRIE DENIED THE CONSORTIUM HAS BEEN
CUT OUT OF TALKS BETWEEN ITS MEMBER COMPANIES AND BOEING CO WHICH IS
ASSEMBLING A NEW PARTNERSHIP TO BUILD A 600SEAT SUPERJUMBO JET

BUT TOP BOEING OFFICIALS IN SEATTLE CONFIRMED THAT THEIR ONLY TALKS HAVE
BEEN WITH AIRBUS MEMBERS COMPANIES IN GERMANY ENGLAND AND MOST RECENTLY
FRANCE AIRBUS IS BEING KEPT INFORMED BY GERMAN OFFICIALS OF THE TALKS SAID
BOEING'S VICE PRESIDENT FOR PLANNING AND INTERNATIONAL DEVELOPMENT LAWRENCE
CLARKSON BUT THERE HAVE BEEN NO DIRECT NEGOTIATIONS BETWEEN THE US
COMPANY AND AIRBUS

AIRBUS INDUSTRIE MANAGING DIRECTOR JEAN PIERSON SAID DURING A NEWS
CONFERENCE IN PARIS THAT THE TWO BITTER RIVALS ARE CONSIDERING JOINING HANDS
ON THE PROJECT BECAUSE OF DEVELOPMENT COSTS EXPECTED TO TOP 10 BILLION

MR PIERSON DISMISSED THE IDEA THAT CONSORTIUM MEMBERS DEUTSCHE AEROSPACE A
SUBSIDIARY OF GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG AND BRITISH AEROSPACE
PLC ARE TALKING SEPARATELY WITH BOEING THE FOURMEMBER CONSORTIUM ALSO
INCLUDES AEROSPATIALE SA OF FRANCE AND CONSTRUCCIONES AERONAUTICAS SA OF
SPAIN A MINOR PARTNER

MR PIERSON SAID THE STUDY WOULD LOOK AT THE POSSIBILITY OF BOEING AND
AIRBUS AND POSSIBLY OTHERS BUILDING A JET CAPABLE OF CARRYING 600 TO
800 PEOPLE AND WOULD BE READY FOR DELIVERY EARLY NEXT CENTURY HE SAID A
FINAL DRAFT OF A JOINT FEASIBILITY STUDY BY THE TWO JET MAKERS SHOULD BE
READY FOR DISCUSSION BY THE BOARD LATER THIS MONTH NOTHING IS SIGNED YET
HE SAID

MR CLARKSON OF BOEING SAID MR PIERSON'S REMARKS SEEM TO BOTH PUT OIL IN
THE WATER AND TO SAY WE KNOW WHAT'S GOING ON AND IT'S OKAY WITH US

THE BOEING EXECUTIVE SAID IN AN INTERVIEW THAT THE COMPANY HAS REJECTED
ANY DEALING DIRECTLY WITH AIRBUS BECAUSE IT IS SET UP AS A CONSORTIUM WHILE
THE RESOURCES AND EXPERTISE FOR BUILDING JETS REST WITH AIRBUS'S MEMBER
COMPANIES HE ALSO ADAMANTLY STATED THAT BOEING HAS NO INTENTION OF TRYING
TO BREAK UP THE EXISTING AIRBUS CONSORTIUM WHICH HAD BEEN ALLEGED IN SOME
EUROPEAN NEWS REPORTS

MR CLARKSON SAID HE IS OPTIMISTIC THAT THERE WILL BE AN AGREEMENT
RELATIVELY SOON WITH THE THREE EUROPEAN COMPANIES AND BOEING THE AGREEMENT
IS LIKELY TO CALL FOR A FIRSTPHASE STUDY LASTING A YEAR OR MORE AND
ASSESSING DEMAND AND PRODUCTION SCHEMES

MR CLARKSON ALSO CONFIRMED AEROSPATIALE HAS EXPRESSED INTEREST IN JOINING
THE DEVELOPMENT EFFORT HE ALSO SAID BOEING HAS MADE OVERTURES TO JAPANESE
PARTS PRODUCERS AND TO MCDONNELL DOUGLAS CORP OF THE US THE WORLD'S
THIRDLARGEST PRODUCER INVITING THEM TO PARTICIPATE IN DEVELOPMENT OF THE
JET HE SAID TALKS WITH BOTH THOSE PARTIES HAVE BEEN PRELIMINARY
DISCUSSIONS AND IN BOTH CASES THE BALL'S IN THEIR COURT

FOR MCDONNELL DOUGLAS ANY PARTICIPATION IN A BOEINGLED VENTURE TO BUILD A
SUPERJUMBO AIRLINER COULD SPELL THE END OF ITS OWN EFFORTS TO ENTER THE
HIGHCAPACITY SEGMENT OF THE COMMERCIALJET MARKET MCDONNELL DOUGLAS BASED
IN ST LOUIS ALREADY HAS SHARPLY SCALED BACK SPENDING ON ITS PROPOSED MD12
JETLINER WHICH COULD EVENTUALLY BE EXPANDED FROM INITIAL VERSIONS CARRYING
430 PEOPLE TO VERSIONS CARRYING MORE THAN 600 PASSENGERS THE BOEING
PROPOSALS CALL FOR A JET CARRYING 550 TO 800 PASSENGERS

BOEING OFFICIALS HAVE SAID THAT BASED ON THEIR PRELIMINARY STUDIES OF THE
POTENTIAL MARKET FOR A SUPERJUMBO JET THERE IS ONLY ENOUGH DEMAND TO
SUPPORT ONE PRODUCER

THE INCLUSION OF AIRBUS IN THE NEW PROPOSED BOEING ENDEAVOR WOULD INDEED BE
REMARKABLE BECAUSE IT WOULD BRING TOGETHER TWO MANUFACTURERS WHO HAVE FOR
MORE THAN TWO DECADES ENGAGED IN A BITTER BATTLE FOR MARKET SHARE ONLY LAST
YEAR THE US AND THE EUROPEAN COMMUNITY SETTLED A TRADE DISPUTE OVER
SUBSIDIES TO AIRCRAFT MAKERS A CONFLICT THAT AT TIMES THREATENED TO
ESCALATE INTO A FULL TRADE WAR

MR PIERSON SAID THE CONSORTIUM'S SUPERVISORY BOARD APPROVED OF THE TALKS
LAST YEAR THE BOARD DESIGNATED MR PIERSON AND DEUTSCHE AEROSPACE CHAIRMAN
JUERGEN SCHREMPP TO MEET WITH BOEING AND ARRANGE A MEMORANDUM OF
UNDERSTANDING MR PIERSON SAID HE AND MR SCHREMPP HAD AN INITIAL MEETING
WITH BOEING VICE PRESIDENT JOHN HAYHURST AND OTHER OFFICIALS ON SEPT 9 IN
BOEING'S EXECUTIVE SUITE AT THE FARNBOROUGH INTERNATIONAL AIRSHOW NEAR
LONDON SINCE THEN HOWEVER MR PIERSON HAS LEFT MR SCHREMPP IN CHARGE OF
THE DISCUSSIONS

BOEING'S MR CLARKSON WHO ALSO ATTENDED THE MEETING SAID AIRBUS CANNOT AS
A PRACTICAL MATTER BE A DIRECT PARTY TO THE FORMATION OF A NEW CONSORTIUM
OR JOINT VENTURE COMPANY WE SAW DOWN THE ROAD THAT YOU WOULD HAVE TO
CREATE SOMETHING VERY MUCH LIKE AIRBUS

THEY AIRBUS DON'T HAVE THE MONEY SAID MR CLARKSON THEY DON'T HAVE
THE RESOURCES  THEY HAVE THE PROGRAM OFFICE

DEVELOPMENT OF THE NEW AIRCRAFT IS ESTIMATED BY EXPERTS TO COST 10 BILLION
ALTHOUGH BOEING WON'T CONFIRM THE FIGURE BOEING OFFICIALS HAVE SAID THEY
ARE PURSUING DEVELOPMENT OF THE JET DESPITE HIGH COSTS AND UNCERTAIN
DEMAND BECAUSE SOME CUSTOMERS ARE SURE TO WANT THE PRODUCT EVENTUALLY IF
IT CAN BE BUILT 9301070059 930107 MARKETSCAN RIVAL HOT SAUCES ARE
BREATHING FIRE AT MARKET LEADER TABASCO  BY KATHLEEN DEVENY

TABASCO PEPPER SAUCE IS ABOUT TO TURN 125 BUT IT DOESN'T SEEM A HOT TIME TO
CELEBRATE

MADE BY THE FAMILYOWNED MCILHENNY CO DEEP IN LOUISIANA'S CAJUN COUNTRY
THE TABASCO NAME BECAME SYNONYMOUS WITH HOT SAUCE IN THE MINDS OF MANY
CONSUMERS AND ITS DISTINCTIVE LONGNECK BOTTLES BECAME A FIXTURE IN ABOUT
HALF OF ALL US HOUSEHOLDS YET EVEN AS MCILHENNY PUTS THE FINISHING
TOUCHES ON PLANS FOR ITS ANNIVERSARY PARTY TABASCO'S HOTSAUCE HEGEMONY IS
BEING THREATENED AS NEVER BEFORE

THE BRAND FACES GROWING COMPETITION FROM LOUISIANA RIVALS INCLUDING BRUCE
FOODS CORP'S LOUISIANA HOT SAUCE AND BAUMER FOODS INC'S CRYSTAL BRAND AT
THE SAME TIME A SLEW OF NEW HOT SAUCES INCLUDING MANY CARIBBEAN AND ASIAN
VARIETIES ARE ATTRACTING CONSUMERS

THERE ARE A ZILLION NEW PRODUCTS OUT THERE SAYS EDWARD N SIMMONS
PRESIDENT OF MCILHENNY WE THINK IT'S GOOD IT MEANS MORE COMPETITION BUT
IT ALSO HELPS DEVELOP AN AWARENESS OF THE MARKET

THE MARKET FOR PEPPER SAUCES BOOMED AS CAJUN FOOD CAUGHT ON IN THE 1980S
BUT EVEN AS THE CAJUN CRAZE COOLED SALES OF THE REDHOT POTIONS REMAIN
STRONG DURING THE 52 WEEKS ENDED NOV 8 SUPERMARKET SALES OF HOT SAUCES
GREW 6 TO 58 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN
SERVICE

THE USE OF HOT SAUCE IS CONSISTENT WITH LARGER FOOD TRENDS WE'RE SEEING
SAYS LINDA SMITHSON PRESIDENT OF FOODWATCH A MINNEAPOLIS COMPANY THAT
TRACKS ARTICLES ABOUT FOOD IN 30 NEWSPAPERS AND MAGAZINES NATIONWIDE LAST
YEAR MS SMITHSON SAYS RECIPES THAT LIST HOT SAUCE AS AN INGREDIENT
INCREASED 19 COMPARED WITH 1991 THE GROWTH COMES AS HEALTHCONSCIOUS
CONSUMERS STRUGGLE TO ADD FLAVOR TO LOWFAT DISHES MANY OF THE RECIPES
CALLING FOR A SHOT OF PEPPER SAUCE ARE FOR MEALS BASED ON BEANS INCLUDING A
SAUSAGE AND LENTIL STEW AND SUCH SEAFOOD ENTREES AS TUNA WITH A SPICY
PAPAYA RELISH THERE IS A MOVE AWAY FROM RED MEAT BUT THESE DISHES CAN BE
BLAND

CERTAINLY TABASCO IS BENEFITING FROM CONSUMERS' QUEST FOR FIRE SUPERMARKET
SALES OF THE BRAND INCREASED 33 TO 16 MILLION IN THE RECENT 52WEEK
PERIOD ACCORDING TO INFORMATION RESOURCES MCILHENNY ALSO SELLS DIRECTLY TO
RESTAURANTS AND SAYS INTERNATIONAL SALES ACCOUNT FOR HALF ITS BUSINESS BUT
THE GAINS MASK A LONGTERM DECLINE IN THE BRAND'S US MARKET SHARE IN
GROCERY STORES DURING THE 13 WEEKS ENDED NOV 12 1989 TABASCO'S SHARE OF
THE MARKET AVERAGED AN IMPRESSIVE 325 BY THE END OF A COMPARABLE 13WEEK
PERIOD IN 1992 HOWEVER IT HAD TUMBLED TO 275

FRANK'S ORIGINAL RED HOT SAUCE MARKETED BY A UNIT OF RECKITT & COLMAN PLC
HAS FARED A LITTLE BETTER SALES OF THE NO 2 BRAND ARE KEEPING PACE WITH
THE GROWTH OF THE CATEGORY WHILE ITS SHARE HAS REMAINED FLAT MEANWHILE
SMALLER BRANDS HAVE BEEN GAINING LOUISIANA BRAND HAD A 73 SHARE DURING
THE 13 WEEKS ENDED NOV 8 1992 UP FROM A 51 SHARE DURING A COMPARABLE
PERIOD IN 1989 PRIVATELABEL PRODUCTS NEARLY DOUBLED THEIR SHARE OF THE
MARKET DURING THE SAME PERIOD

THE SHIFTING SHARES ARE PARTLY DUE TO PENNYPINCHING BY CONSUMERS SINCE THE
TABASCO BRAND IS AMONG THE PRICIEST OF THE HOT SAUCES BUT FOOD EXPERTS SAY
THE SUCCESS OF NEW HOTSAUCE BRANDS ALSO REFLECTS CHANGING CONSUMERS' TASTES
AND THE FACT THAT THE SAUCES ARE NOW REACHING A BROADER MARKET ALTHOUGH THE
FAMILYHELD COMPANIES BASED IN SOUTHERN LOUISIANA ARE TIGHTLIPPED ABOUT
THEIR RECIPES MOST OF THE SAUCES SHARE ONE CHARACTERISTIC THEY AREN'T AS
HOT AS TABASCO

MCILHENNY IS NOT MUCH FLAVOR MORE HEAT SAYS TERRY HANES CHIEF OPERATOR
OF BAUMER FOODS WHICH HAS BEEN MAKING THE CRYSTAL BRAND SINCE 1923 OUR
PRODUCT HAS ONEFOURTH THE HEAT LEVEL AND A LOT MORE FLAVOR

NOT TOO LONG AGO HOTNESS WAS TABASCO'S MOST PRIZED ATTRIBUTE AND MANY
CHEFS STILL INSIST ON THE BRAND BECAUSE IT IS SO CONCENTRATED THE PRODUCT
IS MADE FROM GROUND RED PEPPERS THAT ARE AGED WITH SALT IN WHITEOAK BARRELS
FOR THREE YEARS AND THEN COMBINED WITH VINEGAR BUT MANY OF TODAY'S
HOTTESTSELLING SAUCES ARE MADE FROM MILDER MORE FLAVORFUL CAYENNE PEPPERS
AND CONTAIN OTHER FLAVORINGS INCLUDING GARLIC TOMATOES OR EVEN BROWN
SUGAR

WHEN I WANT HEAT I'M LOOKING FOR TABASCO SAYS JOHN FOLSE STAR OF THE
POPULAR PUBLIC BROADCASTING SERVICE COOKING SERIES A TASTE OF LOUISIANA
BUT MOST OFTEN THE PROMINENT CAJUN CHEF FAVORS LOUISIANA GOLD A BRAND
EXTENSION INTRODUCED SIX YEARS AGO BY BRUCE FOODS BECAUSE HE SAYS IT IS
MILDER AND ADDS MORE FLAVOR BRUCE FOODS IS ONE OF THE SPONSORS OF MR
FOLSE'S PBS PROGRAM

THE TREND TOWARD MILDER HOT SAUCES MAY ALSO REFLECT THE FACT THAT THEY
APPEAL TO PEPPERSAUCE NEOPHYTES ONCE RARELY USED BY HOME CHEFS HOT SAUCES
ARE INCREASINGLY FINDING THEIR WAY INTO MAINSTREAM CUISINE CONSUMERS ARE
REGULARLY ASKING FOR HOT SAUCES IN THE NINE SUPERMARKETS OPERATED BY
BYERLY'S INC IN MINNESOTA FOR EXAMPLE THE GROWTH IS SPURRED PARTLY BY
INCREASING INTEREST IN SOUTHWESTERN AND CARIBBEAN CUISINES SAYS LEISHA
INGDAL A HOME ECONOMIST FOR BYERLY'S BUT HOME COOKS ALSO ARE MORE
INTERESTED IN SPICING UP TRADITIONAL FARE

I'M A SCANDINAVIAN THAT GREW UP ON SALT AND PEPPER SO IT'S QUITE A STRETCH
FOR ME TO BE USING TABASCO ON MY EGGS MS INGDAL SAYS BUT NOW I LOVE
IT

EVEN MCILHENNY IS RECOGNIZING THE TREND IN MAY 1991 THE COMPANY MADE ITS
FIRSTEVER ACQUISITION BUYING RIVAL TRAPPEY'S FINE FOODS TRAPPEY'S WHICH
ALSO SELLS SPECIALTY SAUCES AND HOT PICKLES IS BEST KNOWN AS THE MAKER OF
RED DEVIL A CAYENNEBASED PEPPER SAUCE THE COMPANY HAS ALSO STEPPED UP ITS
ADVERTISING WHICH IS AIMED AT GETTING CONSUMERS TO USE MORE TABASCO BY
ENCOURAGING THEM TO TRY IT ON SUCH FOODS AS PASTA OR ONION RINGS

THE COMPANY ALSO HAS BEEN TRYING TO DEVELOP OTHER PRODUCTS IN RECENT YEARS
WITH MIXED RESULTS THE COMPANY SAYS ITS TABASCO BLOODY MARY MIX HAS BEEN
SUCCESSFUL BUT A SEVENSPICE CHILI RECIPE TESTED A FEW YEARS AGO IS STILL
LIMPING ALONG WITH LIMITED DISTRIBUTION UP NEXT A LOUISIANA STEAK SAUCE
AND A LINE OF DRIED SEASONINGS SOME UNDER THE TABASCO NAME DUE OUT NEXT
YEAR

BUT TRADITIONAL TABASCO SAUCE IS STILL THE CORE PRODUCT SAYS THE
COMPANY'S MR SIMMONS AND THE MARKET FOR TABASCO SAUCE CONTINUES TO
EXPAND

AMERICANS ARE SEEKING MORE FIERY FOODS DRIVING SALES OF CAJUNSTYLE HOT
PEPPER SAUCES MARKET LEADER TABASCO PEPPER SAUCE IS FACING MORE COMPETITION
THAN EVER FROM SUCH RIVAL BRANDS AS CRYSTAL AND LOUISIANA 9301070058
930107 EPA REPORT SPARKS ANTISMOKING PLANS  PLAINTIFFS' SUITS MAY
PROD FIRMS TO BAR SMOKING  BY EDWARD FELSENTHAL STAFF REPORTER
OF THE WALL STREET JOURNAL

THE ENVIRONMENTAL PROTECTION AGENCY IS COUNTING MAINLY ON PLAINTIFFS'
LAWYERS RATHER THAN REGULATORS TO DRIVE BUSINESSES TO BAN SMOKING ON THEIR
PREMISES AND THE LAWYERS ARE EAGER TO COMPLY

AS A RESULT OF THE EPA'S REPORT LINKING PASSIVE TOBACCO SMOKE TO LUNG
CANCER AND OTHER AILMENTS A NEW WAVE OF TOBACCORELATED LAWSUITS IS LIKELY
LEGAL SPECIALISTS SAY THESE ARE EXPECTED TO INCLUDE

 WORKERS' COMPENSATION CLAIMS BY NONSMOKERS WHO SAY THEY BECAME ILL IN A
SMOKEFILLED WORKPLACE

 SUITS AGAINST TOBACCO COMPANIES BY NONSMOKERS WHO HAVE BEEN EXPOSED
ANYWHERE TO CIGARETTE SMOKE

 DAMAGE SUITS BY CUSTOMERS WHO EXPERIENCE ADVERSE REACTIONS SUCH AS
RESPIRATORY PROBLEMS AT RESTAURANTS BARS AND OTHER FACILITIES THAT PERMIT
SMOKING

WHILE ALL THESE LAWSUITS HAVE BEEN ATTEMPTED BEFORE USUALLY UNSUCCESSFULLY
THE EPA REPORT IS EXPECTED TO BE CITED AS COMPELLING EVIDENCE OF THE PERILS
OF PASSIVE SMOKE AND IT COULD AID PLAINTIFFS EVEN IN CASES IN WHICH
EXPOSURE TO THE SMOKE PRECEDED BY MANY YEARS THE ISSUANCE OF THE REPORT AS
IN ALL SUCH CASES THOUGH THE PLAINTIFF WILL STILL HAVE TO PROVE THAT THE
PRESENCE OF THE SMOKE CAUSED HIS OR HER ILLNESS

LAWYERS FOR TOBACCO COMPANIES AND EMPLOYERS STRESS THE DIFFICULTY OF PROVING
SUCH CAUSATION IN ANY SPECIFIC CASE THEY ADD THAT THE EPA REPORT IS FAR
FROM THE FIRST PUBLIC ASSERTION THAT PASSIVE SMOKE MAY BE A HEALTH RISK AND
THAT IT WON'T SERVE AS A PANACEA FOR THE PLAINTIFFS' BAR

NONETHELESS BUSINESSES ARE BEING URGED BY SOME DEFENSE LAWYERS TO CUT THEIR
FUTURE EXPOSURE TO SUCH LAWSUITS BY MOVING MORE QUICKLY TO LIMIT SMOKING IN
THE WORKPLACE ARVIN MASKIN OF THE LAW FIRM WEIL GOTSHAL & MANGES
SUGGESTS FOR EXAMPLE THAT COMPANIES CONSIDER SEGREGATING SMOKERS IN ROOMS
WITH SEPARATE VENTILATION SYSTEMS

MR MASKIN SAYS THAT COMPANIES WILL BE PRESUMED BY COURTS TO BE FAMILIAR
WITH THE EPA'S FINDINGS AND MAY HAVE TO GO BEYOND MERE COMPLIANCE WITH
VARIOUS STATE AND LOCAL REGULATIONS TO AVOID LIABILITY FOR WRONGDOING

THAT'S THE KIND OF LEGALLY DRIVEN REACTION THAT EPA ADMINISTRATOR WILLIAM
REILLY HAS SAID HE'S SEEKING TO ENCOURAGE THE LAWSUIT ROUTE IS PARTICULARLY
APPEALING TO HIM BECAUSE THE EPA HAS NO REGULATORY POWER OVER WORKPLACE
SMOKING RULES AND HAS TO RELY ON A SEPARATE FEDERAL AGENCY THE OCCUPATIONAL
SAFETY AND HEALTH ADMINISTRATION TO DEVELOP TIGHTER REGULATIONS IN THE
PAST OSHA HAS BEEN SLOW TO MOVE ON THIS ISSUE

IN PART BECAUSE OF THE POLITICAL COMPLEXITY OF PUSHING THROUGH REGULATIONS
OR LEGISLATION ON SUCH CONTROVERSIAL MATTERS THE GOVERNMENT HAS OFTEN
ENCOURAGED PRIVATE LAWYERS TO BRING LAWSUITS THAT MIGHT HELP BRING ABOUT THE
SAME RESULTS AS LEGISLATION IN THE PAST CIVIL RIGHTS AND THE ENVIRONMENT
HAVE BEEN AMONG THE AREAS IN WHICH LAWYERS IN THE PRIVATE SECTOR SOMETIMES
VIEWED AS PRIVATE ATTORNEYS GENERAL HAVE PROMOTED A PUBLIC POLICY THROUGH
LITIGATION

WHEN LITIGATION BECOMES A REAL FACTOR PEOPLE CHANGE THEIR BEHAVIOR SAYS
RICHARD DAYNARD A LAW PROFESSOR AT NORTHEASTERN UNIVERSITY WHO HEADS THE
TOBACCO PRODUCTS LIABILITY PROJECT A PUBLICHEALTH ADVOCACY GROUP

MR DAYNARD AND OTHER LAWYERS ALSO SUGGEST THAT WHEN FACED WITH MORE CLAIMS
RELATED TO PASSIVE SMOKING INSURERS MAY START EXERTING PRESSURE ON
COMPANIES AS WELL INSURERS INTERVIEWED YESTERDAY HOWEVER SAID THAT IT WAS
TOO SOON TO PREDICT ANY SUCH RESULT

SO FAR NONSMOKERS WHO HAVE TRIED TO LINK THEIR ILLNESSES TO CIGARETTE FUMES
HAVEN'T FARED PARTICULARLY WELL IN THE COURTROOM LAST SEPTEMBER FOR
EXAMPLE THE NEVADA SUPREME COURT DENIED WORKERS' COMPENSATION BENEFITS TO A
NONSMOKER WHO WORKED FOR 20 YEARS AS A PIT BOSS AT A CASINO THAT ALLEGEDLY
ENCOURAGED SMOKING BY PROVIDING CUSTOMERS WITH FREE CIGARETTES AND ASHTRAYS

SUCH CASES TYPICALLY INVOLVING PLAINTIFFS WITH CANCER AND HEART OR
RESPIRATORY DISEASES HAVE BEEN DIFFICULT TO WIN BECAUSE THERE ARE SO MANY
FACTORS OTHER THAN SECONDHAND TOBACCO SMOKE THAT CAN CAUSE THE ILLNESSES
AND AT LEAST IN THE PAST DEFENDANTS COULD ARGUE THAT THE EVIDENCE ON THE
DANGERS OF SECONDARY SMOKE WHILE MOUNTING WASN'T CONCLUSIVE

BUT THE EPA REPORT MAY CLEAR SOME OBSTACLES FOR NONSMOKING PLAINTIFFS
PARTICULARLY IN WORKER'S COMPENSATION CASES IN WHICH NONSMOKING EMPLOYEES
WITH OTHERWISE HEALTHFUL LIFESTYLES HAVE BEEN EXPOSED TO CIGARETTE SMOKE FOR
MANY YEARS NOW THE EMPLOYER IS CLEARLY ON NOTICE THAT SECONDARY SMOKE IS A
HAZARDOUS CONDITION THAT DOESN'T BELONG IN THE WORKPLACE SAYS DEBORAH
KATZ

IN FACT EMPLOYEES WITH SMOKINGRELATED ILLNESSES MAY BE ABLE TO USE THE
EPA'S REPORT AS EVIDENCE EVEN IF THEIR ILLNESSES STARTED BEFORE THE REPORT
WAS RELEASED UNDER MOST STATE WORKERS' COMPENSATION LAWS EMPLOYEES DON'T
HAVE TO SHOW THE COMPANY WAS NEGLIGENT IN ORDER TO WIN THEIR CLAIMS IF A
WORKER CAN SHOW THAT SECONDARY SMOKE CAUSED HIS AILMENT HE MAY PREVAIL EVEN
IF THE EMPLOYER CAN PROVE IT DIDN'T KNOW SECONDHAND SMOKE WAS HARMFUL

THE REPORT MAY BUTTRESS NONSMOKERS' LAWSUITS AGAINST THE TOBACCO INDUSTRY
AS WELL ALTHOUGH SMOKERS HAVE BEEN REBUFFED REPEATEDLY IN LAWSUITS SEEKING
DAMAGES FROM CIGARETTE MANUFACTURERS CASES BY NONSMOKERS WITH
TOBACCORELATED ILLNESSES ELIMINATE SOME OBSTACLES FOR PLAINTIFFS' LAWYERS
MOST SIGNIFICANTLY IN MANY INSTANCES NONSMOKERS WILL BE ABLE TO PROVE THAT
THEY WERE EXPOSED TO CIGARETTE SMOKE AGAINST THEIR WILLS AND NONSMOKERS
WON'T FACE JURIES' SKEPTICISM ABOUT AWARDING DAMAGES TO PEOPLE WHO CHOSE TO
SMOKE DESPITE REPEATED HEALTH WARNINGS

IN ONE PENDING NONSMOKER CASE A BARBER BURL BUTLER OF LAUREL MISS HAS
SUED ABOUT A DOZEN TOBACCO COMPANIES ALLEGING THAT HE DEVELOPED LUNG CANCER
BECAUSE OF MANY YEARS' EXPOSURE TO HIS CUSTOMERS' CIGARETTE SMOKE

I THINK THE EPA REPORT IS DEFINITELY GOING TO HAVE A MAJOR IMPACT UPON OUR
LAWSUIT BECAUSE THE COMPANIES WILL FIND IT HARDER TO ARGUE THAT THE
EVIDENCE ON PASSIVE SMOKING IS INCONCLUSIVE SAYS MR BUTLER'S LAWYER ROE
FRAZER THE TOBACCO INDUSTRY HOWEVER CONTINUES TO MAINTAIN THAT THERE'S NO
STATISTICALLY SIGNIFICANT LINK BETWEEN PASSIVE SMOKE AND LUNG CANCER

WITH EVIDENCE MOUNTING ABOUT THE DANGERS OF SECONDHAND SMOKE HOWEVER
TOBACCOLITIGATION SPECIALISTS SAY JURIES MAY BE RECEPTIVE TO A VARIETY OF
MORE UNUSUAL CLAIMS A PENNSYLVANIA WOMAN DIANA ANDROMALOSDALE FOR
EXAMPLE IS SUING AN ALLEGHENY COUNTY PA RESTAURANT FOR ASSAULT AND
BATTERY ALLEGING THAT SHE HAD A SEVERE ASTHMATIC ATTACK AFTER THE
RESTAURANT PLACED HER AROUND SMOKERS DESPITE HER REQUEST TO BE SEATED IN A
NONSMOKING AREA

AND THE US SUPREME COURT WILL HEAR ARGUMENTS NEXT WEEK ABOUT WHETHER
ANOTHER UNUSUAL PASSIVESMOKING CASE SHOULD GO TO TRIAL IN THAT CASE A
NEVADA STATE PRISONER A NONSMOKER ALLEGES THAT THE PRISON VIOLATED HIS
CONSTITUTIONAL RIGHTS BY HOUSING HIM WITH A HEAVY SMOKER AND BY PUTTING HIM
IN AN AREA WITH NO RESTRICTIONS ON SMOKING THE PRISONER CLAIMS HIS EXPOSURE
TO THE SMOKE IS CRUEL AND UNUSUAL PUNISHMENT SEE RELATED STORY SOME
BUSINESSES ALREADY MOVING CLOSER TO BANS WSJ JAN 7 1993 9301070057
930107 BUSINESS BRIEF RALSTON PURINA CO PETFOOD COMPANY IS SUED BY
A COMPETITOR IN ALABAMA

A SMALL ALABAMA COMPANY SUED PETFOOD INDUSTRY GIANT RALSTON PURINA CO
ALLEGING UNFAIR PRICING FALSE ADVERTISING AND OTHER PRACTICES IN THE SALE
OF LOWPRICED DOG FOOD

A LAWSUIT FILED IN FEDERAL DISTRICT COURT IN BIRMINGHAM ALA BY SUNSHINE
MILLS INC OF RED BAY ALA CONTENDS THAT RALSTON ENGAGED IN
ANTICOMPETITIVE CONSPIRACIES WITH SOME RETAILERS INCLUDING OFFERS OF
FREE GOODS OR MONEY TO INDUCE THEM TO REMOVE SUNSHINE'S AND OTHER
NONPREMIUM BRANDS FROM THEIR SHELVES

A SPOKESMAN FOR ST LOUISBASED RALSTON SAID THE COMPANY HADN'T SEEN THE
SUIT AND COULDN'T COMMENT

THE SUIT SEEKS VARIOUS ACTUAL DAMAGES MORE THAN 30 MILLION IN PUNITIVE
DAMAGES AND INJUNCTIVE RELIEF FORCING RALSTON TO END THE ALLEGED MISDEEDS

THE SUIT ALSO CONTENDS THAT RALSTON CREATED A LINE OF FIGHTER BRANDS DRY
DOG FOODS INCLUDING ONE CALLED FIELD MASTER INTENDED TO CREATE CONSUMER
CONFUSION WITH SUNSHINE'S FIELD TRIAL BRAND SUNSHINE ALLEGES THAT RALSTON
SOLD ECONOMY DOGFOOD PRODUCTS IN ALABAMA AT PRICES LOWER THAN IN OTHER
AREAS OF THE US IN AN EFFORT TO ERODE THE PLAINTIFF'S MARKET SHARE
9301070056 930107 POSTAL GOVERNORS FAIL TO GAIN BUSH'S BACKING IN
APPEALING DECISION

WASHINGTON FIVE OF THE NINE POSTAL SERVICE GOVERNORS REMAIN UNDER THREAT
OF DISMISSAL AFTER THEIR LETTER TO PRESIDENT BUSH EXPLAINING THEIR DESIRE TO
CONTINUE THEIR APPEAL OF A POSTAL RATE DECISION WAS REJECTED BY THE WHITE
HOUSE

IN A LETTER TO THE FIVE INCLUDING CHAIRMAN BERT MACKIE WHITE HOUSE COUNSEL
BOYDEN GRAY CALLED THEIR ARGUMENTS ENTIRELY UNPERSUASIVE AND SAID THE
POSTAL SERVICE BOARD REMAINED ENGAGED IN CONDUCT PROHIBITED BY LAW

AT ISSUE IS A POSTAL SERVICE APPEAL OF A JANUARY 1991 RATE DECISION BY THE
INDEPENDENT POSTAL RATE COMMISSION WHICH GRANTED A 29CENT FIRSTCLASS RATE
RATHER THAN THE 30 CENTS THE BOARD WAS SEEKING THE BOARD ASKED THE JUSTICE
DEPARTMENT TO REPRESENT IT BEFORE THE US COURT OF APPEALS IN A BID TO
RAISE THE RATE BUT WAS TURNED DOWN SO THE BOARD USED ITS OWN LAWYERS FOR
THE LEGAL PROCEEDING DESPITE A JUSTICE DEPARTMENT CONTENTION THAT THE LAW
ALLOWS ONLY THE AGENCY TO REPRESENT THE POSTAL SERVICE

THE MOVE ANGERED PRESIDENT BUSH WHO ORDERED THE BOARD TO WITHDRAW THE
APPEAL AND THREATENED TO FIRE THE GOVERNORS

WHILE FOUR GOVERNORS TOLD THE PRESIDENT THAT THEY WANTED TO WITHDRAW THE
APPEAL BUT COULDN'T BECAUSE THEY WERE OUTNUMBERED FIVE TRIED TO EXPLAIN IN
THEIR LETTER WHY THEY WANTED TO CONTINUE AND URGED MR BUSH TO BACK THEM
9301070055 930107 REVIEW & OUTLOOK EDITORIAL SCHOOLS AND THE CLINTONS

THE POWERFUL TEACHERS' UNION THE NATIONAL EDUCATION ASSOCIATION HAS ITS
GREAT HEADQUARTERS BUILDING AT 1201 16TH ST NW IN WASHINGTON DC IT
REPRESENTS MORE THAN TWO MILLION UNIONIZED TEACHERS THE HEADQUARTERS HAS
HUNDREDS OF PEOPLE ON ITS STAFF AND IT HAS A MULTIMILLION BUDGET YET IN
THE CITY IN WHICH THE NEA IS SUCH A POWERFUL POLITICAL FORCE THERE
APPARENTLY ISN'T A SINGLE PUBLIC SCHOOL SUITABLE FOR ATTENDANCE BY CHELSEA
CLINTON SHE IS GOING TO A PRIVATE SCHOOL SIDWELL FRIENDS IN NORTHWEST
WASHINGTON

AND YET SITTING FAT AND RICH AMID THE RUBBLE OF THE DISTRICT OF COLUMBIA'S
SCHOOL SYSTEM THE NEA PRONOUNCES ITSELF THUNDEROUSLY AGAINST FULL SCHOOL
CHOICE FOR PARENTS RICH OR POOR FAMOUS OR NOT THE OPPONENTS OF FULL
SCHOOL CHOICE HAVE A LOT OF EXPLAINING TO DO

PRESIDENTELECT CLINTON HAS MADE HIS BARGAIN WITH THE TEACHERS' UNIONS
HOWEVER SO LET'S PUSH BEYOND THE OBVIOUS POINTS ABOUT SCHOOL CHOICE TO SEE
IF THERE ISN'T SOMETHING CONSTRUCTIVE TO BUILD AROUND THE SIDWELL FRIENDS
STORY THE CLINTONS AFTER ALL ARE HARDLY GOING TO BE ALONE IN MAKING THIS
DECISION

YOU WON'T FIND MANY DEMOCRATIC APPOINTEES COMING TO WASHINGTON AND ENROLLING
THEIR CHILDREN IN THE DISTRICT'S PUBLIC SCHOOLS LIKE MOST OF THE WASHINGTON
POLICY ESTABLISHMENT THEY'LL ALSO TRY TO GET INTO PRIVATE SCHOOLS LIKE
SIDWELL WHERE MARIAN WRIGHT EDELMAN OF THE CHILDREN'S DEFENSE FUND SENT HER
CHILDREN VICE PRESIDENTELECT GORE LONG RESIDENT IN WASHINGTON SENDS HIS
DAUGHTERS TO NATIONAL CATHEDRAL SCHOOL AND HIS SON TO ST ALBANS WHICH HE
HIMSELF ATTENDED VICE PRESIDENT QUAYLE'S SONS GO TO GONZAGA AN UNFANCY BUT
HIGHACHIEVING HIGH SCHOOL DOWNTOWN WHICH IS RUN BY THE JESUITS THE
CLINTON APPOINTEES WILL NEVER BE SO HUMBLE IN WASHINGTON AS WHEN THEY PLEAD
WITH THESE PLACES TO LET THEIR CHILDREN IN OR ELSE THEY'LL LIVE IN THE
VIRGINIA SUBURBS CHECK OUT HOW MANY UNIONIZED DISTRICT TEACHERS SEND THEIR
KIDS TO PRIVATE SCHOOLS OR LIVE ELSEWHERE

THAT LEAVES THE DISTRICT'S PUBLIC SCHOOLS AND ALL THE CHILDREN IN THEM
PRETTY MUCH WHERE THEY WERE BEFORE BILL CLINTON WON THE PRESIDENCY RIGHT
NOW THE DISTRICT'S SCHOOLS HAVE ONE OF THE NATION'S HIGHEST DROPOUT RATES
WHICH STRIKES US AS A LOT OF RATIONAL CONSUMERS VOTING WITH THEIR FEET

WE HAVE A SUGGESTION WHY DOESN'T BILL CLINTON OR MAYBE HILLARY LAUNCH A
FULLSCALE OFFENSIVE AGAINST ALL THE FORCES THAT MAKE DC'S SCHOOLS UNABLE
TO SUCCEED

OPERATION HILLARY'S JUSTICE OF COURSE WOULD HAVE TO CONFRONT UNION RULES
THAT ENTRENCH POOR TEACHER PERFORMANCE BUT WHY NOT BILL CLINTON PROBABLY
CONTRARY TO HIS OWN INSTINCTS GAVE THE UNIONS A LOT WHEN HE TRIMMED HIS
CHOICE POSITION BY THROWING PRIVATE SCHOOLS OVER THE SIDE WE DON'T SEE WHY
THAT MEANS THE DEAL EXTENDS TO LETTING UNION RESISTANCE TO REFORM DRAG CLASS
AFTER CLASS OF DISTRICT CHILDREN BELOW THE WAVES

THE CORE STRATEGY OF ANY SUCH CAMPAIGN WOULD BE THAT THESE SCHOOLS HAVE TO
BE FREED TO TEACH RATHER THAN BEING ASKED CONSTANTLY TO SOLVE ALL THE OTHER
ILLS OF AMERICAN LIFE HANDING OUT CONDOMS IN THE NURSE'S OFFICE CLINICAL
COURSES IN AIDS PREVENTION COMPLIANCE WITH ACLUAPPROVED DISCIPLINE
PROCEDURES ENVIRONMENTAL SENSITIVITY TRAINING COMPLYING WITH ASBESTOS
MANDATES OR BUREAUCRATIC MANDATES YET UNBORN

THE TRUTH IS THAT DROPPING CHELSEA CLINTON INTO A DISTRICT JUNIOR HIGH
WOULDN'T HAVE BUDGED THE SCHOOLS MONOLITH AN INCH WHAT'S NEEDED IS FOR THE
CLINTONS TO FORM UP AN ARMY MAINLY OF THE DISTRICT'S BEST PARENTS TO
ROUT THE BUREAUCRATS AND OBVIOUS SPECIAL INTERESTS BY 1996 MAYBE CHELSEA
OR ANY CHILD WOULD FEEL PROUD IN A DISTRICT SCHOOL 9301070054 930107
CLINTON PLANS STATEMENT NEXT WEEK ON HAITI POLICY

WASHINGTON PRESIDENTELECT CLINTON PLANS TO MAKE A DETAILED POLICY
STATEMENT ON HAITI NEXT WEEK IN HOPES OF PREVENTING A FLOOD OF HAITIAN
REFUGEES FROM STREAMING TO THE US AIDES SAID

MR CLINTON AND HIS FOREIGNPOLICY ADVISERS DISCUSSED THE HAITI PROBLEM IN A
PRIVATE SESSION TUESDAY YESTERDAY WARREN CHRISTOPHER THE CLINTON NOMINEE
FOR SECRETARY OF STATE DISCUSSED IT FURTHER WITH OUTGOING SECRETARY OF
STATE LAWRENCE EAGLEBURGER AFTERWARD THE TWO MEN ISSUED A JOINT STATEMENT
URGING HAITIAN FACTIONS TO SUPPORT AN EFFORT BY THE UNITED NATIONS AND THE
ORGANIZATION OF AMERICAN STATES TO FIND A POLITICAL SOLUTION TO THE CRISIS
IN HAITI WHERE PRESIDENT JEAN BERTRAND ARISTIDE WAS OVERTHROWN BY THE
MILITARY IN 1991

YESTERDAY'S STATEMENT WAS A PRELUDE TO A MORE DETAILED ONE THAT MR CLINTON
PLANS TO ISSUE NEXT WEEK AIDES SAID CLINTON ADVISERS HAVE BEEN CONCERNED
THAT WITHOUT A PUBLIC DECLARATION OF POLICY BY THE INCOMING PRESIDENT
THOUSANDS OF HAITIAN REFUGEES WILL HEAD TOWARD FLORIDA ONCE HE TAKES OFFICE

BECAUSE MR CLINTON AS A CANDIDATE CRITICIZED THE BUSH ADMINISTRATION'S
POLICY OF INTERDICTING HAITIAN BOAT PEOPLE AT SEA AND SENDING THEM HOME
MANY HAITIANS HAVE ASSUMED THAT THEY WILL GET EASY ACCESS TO THE US ONCE A
CLINTON ADMINISTRATION IS IN PLACE MR CLINTON IS LIKELY TO STRESS THAT HE
WANTS A BROAD POLITICAL SETTLEMENT THAT WILL END THE CHAOS IN HAITI AND
ALLOW CITIZENS TO STAY AND AN ORDERLY PROCESS FOR PROCESSING WOULDBE
REFUGEES IN THE MEANTIME 9301070053 930107 WORKPLACE RIGHTS HOW ONE
MAN'S FIGHT FOR A RAISE BECAME A MAJOR AGEBIAS CASE  SUPREME
COURT WILL DECIDE WHEN EMPLOYERS FACE RISK OF DOUBLE DAMAGES  
GETTING THE EAR OF THE JUSTICES  BY PAUL M BARRETT STAFF REPORTER
OF THE WALL STREET JOURNAL

HOLYOKE MASS WALTER BIGGINS NEVER DREAMED THAT HIS DEMAND FOR A PAY
INCREASE WOULD END UP BEFORE THE SUPREME COURT BUT 6 1/2 YEARS AFTER HE WAS
FIRED FOLLOWING THE SALARY REQUEST THAT'S JUST WHERE THE DISPUTE WILL BE
HEARD LEAVING THE 68YEAROLD CHEMIST SOMEWHAT PERPLEXED ALL HE WANTED HE
SAYS WAS THE DAMN RAISE

MR BIGGINS WHO WORKED FOR HAZEN PAPER CO HERE THOUGHT HE DESERVED A
HEFTY INCREASE TO 100000 A YEAR FROM 44000 BECAUSE HE BELIEVED HE
HAD ENRICHED THE COMPANY'S BOTTOM LINE BUT THOMAS AND ROBERT HAZEN THE
COUSINS WHO RUN THE SMALL FAMILYOWNED CONCERN THOUGHT THEIR EMPLOYEE WAS
ASKING FOR TOO MUCH COURTEOUS DISCUSSION GAVE WAY TO CHARGES OF
MISTREATMENT AND COUNTERCHARGES OF DISLOYALTY MR BIGGINS WAS FIRED
SHORTLY BEFORE QUALIFYING FOR HIS PENSION

MR BIGGINS HOWEVER WHO IN WORLD WAR II BRAVED GERMAN ARTILLERY FIRE AND
WON A BRONZE STAR DOESN'T BACK DOWN FROM A FIGHT SAYS HIS SON TIMOTHY
SO MR BIGGINS FILED A SUIT ALLEGING AGE DISCRIMINATION

NOW WHAT BEGAN AS A ROUTINE DISPUTE IS EXPECTED TO PRODUCE ONE OF THIS
TERM'S MOST SIGNIFICANT LABORLAW DECISIONS IF THE COURT SIDES WITH MR
BIGGINS IT WILL BE EASIER FOR OLDER WORKERS WHO SUE EMPLOYERS FOR AGE BIAS
TO PROVE THAT THE BIAS WAS WILLFUL AND THUS COLLECT DOUBLE DAMAGES

THE JUSTICES WILL HEAR THE CASE OF HAZEN PAPER CO VS BIGGINS NEXT
WEDNESDAY HAZEN PAPER WHICH SO FAR HAS PAID ROUGHLY 11 MILLION IN
DAMAGES AND LEGAL FEES DENIES IT HAS DONE ANYTHING WRONG

THE CASE SHOWS HOW A LAWSUIT CAN RISE FROM OBSCURITY TO GAIN THE ATTENTION
OF THE NATION'S HIGHEST COURT

SOME SUITS ARE SPECIFICALLY CRAFTED BY LAWYERS FROM THE OUTSET AS TEST
CASES MEANT TO SET LEGAL PRECEDENT OTHER SUITS REACH THE SUPREME COURT
BECAUSE THEY INVOLVE HOT CONSTITUTIONAL ISSUES SUCH AS ABORTION RIGHTS OR
FREEDOM OF RELIGION YET A SURPRISING NUMBER OF HIGH COURT CASES START WITH
MUNDANE DISAGREEMENTS THAT WEND THEIR WAY THROUGH THE SYSTEM SOMETIMES TO
THE FRUSTRATION OF BOTH SIDES FOR A VARIETY OF SEEMINGLY UNRELATED REASONS
FACTORS IN THE BIGGINS CASE INCLUDE THE PLAINTIFF'S STUBBORN PERSONALITY
THE CREATIVITY OF HIS LAWYERS THE RESISTANCE OF THE DEFENDANTS AND THE
RAISING OF A LEGAL QUESTION ON WHICH LOWER COURTS HAVE ISSUED ENOUGH
CONFLICTING RULINGS TO AROUSE THE INTEREST OF THE JUSTICES

THE SUPREME COURT IS ASKED TO HEAR MORE THAN 5000 CASES A YEAR SO MANY
THAT ONLY ONE JUSTICE JOHN PAUL STEVENS STILL SCANS THE REQUESTS HIMSELF
THE OTHER EIGHT MEMBERS LEND THEIR LAW CLERKS TO A ROTATING POOL THAT
REVIEWS THE BRIEFS AND MAKES RECOMMENDATIONS TO THE JUSTICES WHO LAST TERM
DECIDED ONLY 108 CASES WITH A 1IN50 CHANCE OF GETTING HEARD PETITIONING
THE HIGH COURT FOR REVIEW IS ALWAYS A VERY LONGSHOT BUSINESS SAYS JOEL
KLEIN WHO FREQUENTLY ARGUES CASES BEFORE THE SUPREME COURT AND IS A
PARTTIME LAW PROFESSOR AT GEORGETOWN UNIVERSITY

CERTAINLY NO ONE INVOLVED IN THE BIGGINS CASE EVER IMAGINED IT WOULD WIND
UP IN THE HIGHEST COURT IN THE LAND

WALTER BIGGINS ARRIVED AT HAZEN PAPER IN 1977 HAVING SPENT A
QUARTERCENTURY WORKING AS A CHEMIST IN THE PAPER INDUSTRY A STOUT
GREGARIOUS MAN HE HAD SHIFTED JOBS A NUMBER OF TIMES OFFICE POLITICS
PLAYED A ROLE IN SOME OF THE MOVES HE SAYS

SINCE 1925 THE HAZEN FAMILY HAS BEEN APPLYING COATINGS TO PAPER MAKING
SUCH THINGS AS GLITTERY WRAPPING FOR COSMETICS AND LIQUOR BOTTLES MR
BIGGINS THOUGHT HE COULD MAKE A MARK AT THE COMPANY BECAUSE IN HIS OPINION
THE HAZENS WERE TECHNICALLY UNSOPHISTICATED AND GENERATING FEW NEW PRODUCTS

THE HAZENS SLIGHT BESPECTACLED MEN WHO LOOK LIKE PREPSCHOOL ENGLISH
TEACHERS ACKNOWLEDGE THAT THEIR FORMER TECHNICAL DIRECTOR WAS INDUSTRIOUS
IF SOMEWHAT EGOTISTICAL HE TOOK HIS WORK HOME FIDDLING WITH SOLVENT
FORMULAS AT THE KITCHEN SINK BY ALL ACCOUNTS MR BIGGINS'S CONCOCTIONS
ALLOWED THE COMPANY TO REDUCE RELEASES OF HAZARDOUS FUMES AND INCREASE
SALES

THEN IN 1984 MR BIGGINS DEMANDED A BIG PAY RAISE SEEKING TO MORE THAN
DOUBLE HIS ANNUAL SALARY I HAD SEEN THE SALES NUMBERS HE SAYS I KNEW I
WAS BRINGING IN MONEY AND I WANTED MY SHARE THE HAZENS BLANCHED THEY
PROPOSED GIVING HIM STOCK IN THE COMPANY INSTEAD BUT TIME PASSED AND THE
SHARES DIDN'T MATERIALIZE

RELATIONS DETERIORATED IN 1986 THE HAZENS ACCUSED MR BIGGINS OF
MOONLIGHTING AS A CONSULTANT FOR COMPETITORS HE CLAIMED HE HAD GOTTEN THE
HAZENS' PERMISSION AFTER HE REFUSED TO SIGN A NONCOMPETE AGREEMENT THAT
JUNE MR BIGGINS THEN AGE 62 WAS DISMISSED IT WASN'T A SURPRISE
REALLY BECAUSE I HAD BECOME A PAIN TO THE HAZENS HE RECALLS BUT I
DIDN'T KNOW HOW TO GET MY DAY IN COURT

THAT MIGHT HAVE BEEN THE END OF THE STORY MR BIGGINS WANTED TO SUE BUT
FOR MONTHS HE COULDN'T FIND A LAWYER EAGER TO TAKE THE CASE THE FIRST THREE
HE APPROACHED YAWNED OR DAWDLED A FOURTH SAW ONLY A STATELAW PENSION
CLAIM MR BIGGINS HAD BEEN FIRED WITHIN WEEKS OF HIS 10TH ANNIVERSARY AT
HAZEN PAPER WHEN HE WOULD HAVE QUALIFIED FOR A TOTAL OF 93000 IN
RETIREMENT MONEY

FORCED TO BE CREATIVE MR EGAN AND HIS PARTNER MAURICE CAHILLANE DEVISED
AN AGGRESSIVE SET OF FEDERAL CLAIMS THEY AGREED TO FILE SUIT IN RETURN FOR
ONETHIRD OF ANY MONEY AWARDED TO MR BIGGINS AS MR EGAN SAW IT THE
HAZENS HAD VIOLATED THE FEDERAL PENSIONPROTECTION STATUE BY DISMISSING MR
BIGGINS SPECIFICALLY TO DENY HIM THE RETIREMENT MONEY SUCH AN ACTION IN
TURN INDICATED AGE DISCRIMINATION MR BIGGINS HAD AFTER ALL BEEN
REPLACED BY A 35YEAROLD THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT
PERMITS DOUBLE DAMAGE AWARDS WHEN INFRACTIONS ARE WILLFUL

FILED IN 1988 TWO YEARS AFTER MR BIGGINS WAS FIRED THE SUIT GOT BOGGED
DOWN IN TWO YEARS OF PRETRIAL SKIRMISHING AS LAWYERS FOR EACH SIDE PROBED
FOR WEAKNESSES MR BIGGINS SAYS HE RAN LOW ON PATIENCE BUT NOT CONFIDENCE
AS JACK EGAN PUT THE THING TOGETHER I THOUGHT A JURY WOULD BUY IT BUT
THE QUESTION WAS WOULD IT HAPPEN IN MY LIFETIME

THE FILING OF AGEDISCRIMINATION SUITS HAS EXPLODED RECENTLY WITH FEDERAL
AND STATE REGULATORS RECEIVING 31000 AGERELATED COMPLAINTS LAST YEAR A
30 INCREASE FROM 1990 BUT AFTER THE PRELIMINARY MANEUVERING SUCH CLAIMS
TYPICALLY END WITH OUTOFCOURT SETTLEMENTS THE BIGGINS CASE WAS AN
EXCEPTION ONE REASON WAS MR BIGGINS HIMSELF

HIS LAWYERS WERE WILLING TO ROLL THE DICE AT TRIAL BECAUSE THEY BELIEVED
THEIR CLIENT WHO IS NEVER AT A LOSS FOR WORDS WOULD DO WELL AS A WITNESS
ON THE OTHER SIDE ROBERT HAZEN CONCEDES PROBABLY WE TOOK THE SUIT MORE
PERSONALLY THAN WE SHOULD HAVE LAWYERS SAY THAT WHEN THE OWNERS OF A
COMPANY FIRE SOMEONE THEMSELVES EMOTIONS TEND TO RUN HIGHER AND COMPROMISE
COMES HARDER INSISTENT THAT MR BIGGINS'S OUTSIDE CONSULTING WORK JUSTIFIED
DISMISSAL THE HAZENS MADE ONLY FAINT NOISES ABOUT SETTLEMENT I'VE TAKEN
PRIDE IN TREATING EMPLOYEES FAIRLY SAYS THOMAS HAZEN

WHEN THE CASE WAS HEARD IN JULY 1990 IN FEDERAL COURT IN SPRINGFIELD MASS
THE HAZEN LAWYERS MADE DISLOYALTY THE CENTERPIECE OF THE DEFENSE ATTORNEY
PATRICK MCGINLEY SOUNDED THE THEME IN HIS OPENING ARGUMENT WAS WALTER
BIGGINS A TRAITOR HE ASKED THE JURY WAS HE REALLY BENEDICT ARNOLD
BIGGINS

MR BIGGINS TESTIFIED AS HIS OWN FIRST WITNESS AND THE LEADOFF QUESTIONS
WERE ABOUT HIS IMPRESSIVE WORLD WAR II RECORD ANYONE REFER TO YOU AS A
BENEDICT ARNOLD THEN MR CAHILLANE ASKED NO THEY DIDN'T MR BIGGINS
REPLIED THE BETRAYAL DEFENSE NEVER GOT BACK ON TRACK

THE BIGGINS LAWYERS PRESENTED EVIDENCE THAT THE OUTSIDECONSULTING ISSUE WAS
MERELY A PRETEXT FOR GETTING RID OF MR BIGGINS WHEN HE BECAME A PROBLEM
DESPITE DEFENSE EVIDENCE TO THE CONTRARY THE JURY AFTER A WEEK OF
TESTIMONY TOOK FOUR HOURS TO RULE FOR MR BIGGINS THEY AWARDED HIM 18
MILLION OF THIS A LITTLE OVER 11 MILLION WAS A DOUBLE DAMAGE AWARD FOR
AGE DISCRIMINATION FOR THE VICTOR IT WAS A HUGE RELIEF

BUT ROBERT HAZEN BELIEVED A JURY OF LAYMEN COULDN'T HAVE UNDERSTOOD THE
REALITIES OF THE WORKPLACE THE SYSTEM IS A LITTLE UNFAIR THAT WAY HE
COMPLAINS SOMEHOW ADDS HIS COUSIN THOMAS THEIR POINT OF VIEW DIDN'T
COME ACROSS

IN ANY CASE THE BATTLE WASN'T OVER IN A POSTTRIAL RULING JUDGE FRANK
FREEDMAN CALLED MR BIGGINS'S CASE A BIT THIN HE EXPRESSED DOUBT ABOUT
WHETHER A PENSIONLAW VIOLATION IMPLIES AGE DISCRIMINATION WHEN ELIGIBILITY
FOR BENEFITS IS TRIGGERED BY A CERTAIN AMOUNT OF TIME ON THE JOB NOT AGE
FINALLY SAYING MR BIGGINS HADN'T PROVED WILLFUL WRONGDOING THE JUDGE
CUT THE AGEBIAS DAMAGES TO 560000 BY ELIMINATING THE DOUBLING OF THE
AWARD

JUDGE FREEDMAN THUS EXCISED THE HEART OF MR EGAN'S ORIGINAL ARGUMENT
STILL MR BIGGINS AND HIS LAWYERS HAPPILY WOULD HAVE FOREGONE AN APPEAL ON
THE WILLFULNESS ISSUE DIVIDED UP THE REMAINING 12 MILLION AND GONE HOME

THE HAZENS DECIDED TO APPEAL ON OTHER ISSUES HOWEVER THEIR CONCERN WASN'T
SO MUCH LEGAL PRINCIPLE AS THE FINANCIAL HIT THEY NOW FACED IN ADDITION TO
THE MODIFIED JURY AWARD THE COMPANY HAD ALREADY INVESTED HUNDREDS OF
THOUSANDS OF DOLLARS IN LEGAL COSTS AND IN A SEPARATE LAWSUIT THEY HAD
BEGUN FIGHTING THEIR CORPORATE INSURER OVER WHETHER THEIR LIABILITY POLICY
WOULD COVER ANY LOSSES

BY THIS POINT SAYS MR BIGGINS I WAS DEFINITELY STARTING TO WONDER
WHETHER I WOULD LIVE TO SEE THE THING END SINCE THE CASE WAS BEING
APPEALED ANYWAY HIS SIDE HAD NOTHING TO LOSE BY RESUSCITATING THE
WILLFULNESS ISSUE

THE APPEALS PROCESS TOOK NEARLY 18 MONTHS AND AGAIN THE HAZENS OVERALL
CAME UP LOSERS IN A DECISION ISSUED LAST JANUARY THE US COURT OF APPEALS
FOR THE FIRST CIRCUIT IN BOSTON SAID THE JURY REASONABLY COULD HAVE FOUND
WILLFUL WRONGDOING AND REINSTATED MOST OF WHAT JUDGE FREEDMAN HAD CUT FROM
THE BIAS AWARD

JUDGES GENERALLY DON'T LIKE THE SUPREME COURT TO SECONDGUESS THEIR
DECISIONS ACCORDINGLY MOST JUDICIAL OPINIONS SOUND AS IF THEY FLOW
INEXORABLY FROM STATUTES PRECEDENTS AND LOGIC OCCASIONALLY HOWEVER A
BRANCH OF LAW GETS SO TANGLED THAT JUDGES SEND A DISTRESS SIGNAL TO
WASHINGTON THAT'S WHAT FEDERAL APPELLATE JUDGE HUGH BOWNES DID IN THE
BIGGINS CASE

WRITING FOR A UNANIMOUS THREEMEMBER PANEL JUDGE BOWNES METICULOUSLY
CATALOGUED THE CONFLICTING DEFINITIONS FEDERAL COURTS HAVE APPLIED TO
WILLFULNESS SOME HAVE REQUIRED EVIDENCE THAT THE EMPLOYER EITHER KNEW OR
SHOWED RECKLESS DISREGARD ABOUT WHETHER THE COMPANY'S CONDUCT WAS
PROHIBITED OTHERS HAVE REJECTED THAT APPROACH AS BEING TOO TOUGH ON
EMPLOYERS WHEN INDIVIDUAL FIRINGS ARE AT ISSUE THESE COURTS HAVE REQUIRED
PROOF OF EGREGIOUS OR OUTRAGEOUS EMPLOYER BEHAVIOR

THE FIRST CIRCUIT CHOSE THE STANDARD FAVORING EMPLOYEES AND SAID THAT MR
BIGGINS HAD MET IT JUDGE BOWNES ACKNOWLEDGED THAT EMPLOYERS WOULD SUFFER
BUT THAT IS THE NATURE OF THE BEAST HE WROTE AT LEAST UNTIL THE
CONGRESS OR THE SUPREME COURT CHANGES THE DEFINITION OF WILLFULNESS

THE HAZENS' LAWYERS RECOMMENDED AN APPEAL TO THE SUPREME COURT POINTING OUT
THAT THE FIRST CIRCUIT'S PLEA WOULD HELP THEM GET THE ATTENTION OF THE
JUSTICES A SURPRISING NUMBER OF LAWYERS MISTAKENLY TRY TO GET THEIR CASES
HEARD AT THE HIGH COURT BY PONTIFICATING ABOUT INJUSTICES VISITED UPON THEIR
CLIENTS THIS RARELY WORKS

A BETTER STRATEGY COURT SCHOLARS SAY IS TO DECRY LOWERCOURT CONFLICTS
WHICH ARE EASY FOR THE JUSTICES' YOUNG LAW CLERKS TO IDENTIFY MOREOVER
JUSTICE BYRON WHITE CAN BE COUNTED ON TO VOTE TO HEAR ALMOST ANY CASE
RAISING A CONFLICT UNDER THE COURT'S UNWRITTEN RULE OF FOUR HE NEEDS
ONLY THREE ALLIES TO AGREE TO ACCEPT A CASE

THE CONFLICT FLAGGED BY JUDGE BOWNES WAS IDEAL IT INVOLVED AN AMBIGUOUS
FEDERAL STATUTE LIKELY TO SPUR CONTINUING LITIGATION THE JUSTICES WHO
PREFER THAT ISSUES PERCOLATE FOR A WHILE IN THE LOWER COURTS HAD ALREADY
TURNED DOWN A FEW CHANCES TO ADDRESS THE WILLFULNESS QUESTION THE HAZEN
LAWYERS ASSERTED THAT DEBATE HAD REACHED A BOILING POINT

LAST JUNE THE SUPREME COURT SAID YES IT WOULD USE THE CASE TO CLARIFY THE
LAW GOVERNING AGE BIAS THOUGH ANNOYED AT THE PROSPECT OF FURTHER DELAY MR
BIGGINS SAYS HE HAD A GUT FEELING HE WOULD HAVE TO ENDURE ONE MORE ROUND
OF LEGAL BATTLE

THE HAZENS WHO HAVE ALREADY PAID OVER 600000 IN DAMAGES RELATED TO CLAIMS
THAT THE COMPANY DIDN'T APPEAL TO THE SUPREME COURT AND ANOTHER 500000 IN
LEGAL FEES AWAIT THE JUSTICES' RULING WITH A WEARY FATALISM THIS HAS BEEN
A BIG PART OF MY LIFE FOR 10 YEARS SAYS THOMAS HAZEN IT'S BEEN VERY
EMOTIONALLY UPSETTING

MR BIGGINS NOW A FULLTIME CONSULTANT IS UNDERSTANDABLY LESS DISCOURAGED
BUT EQUALLY INDIFFERENT ABOUT THE LARGER ISSUES HIS WISH WE WIN I GET
THE MONEY THE WHOLE THING IS FINALLY OVER 9301070052 930107 MILITANT
ISLAM FOE OF ARAB STATES  BY DORE GOLD

TEL AVIV ISRAEL'S DEPORTATION OF 415 ACTIVISTS FROM TWO PALESTINIAN
FUNDAMENTALIST ORGANIZATIONS HAMAS AND ISLAMIC JIHAD HAS TURNED INTO AN
INTERNATIONAL SAGA WHOSE FULL IMPLICATIONS CAN BE UNDERSTOOD ONLY IN THE
WIDER CONTEXT OF MIDDLE EASTERN POLITICS ACROSS THE ENTIRE REGION ARAB
REGIMES HAVE BEEN COPING WITH THE SAME PHENOMENON THAT LED TO THE
DEPORTATION THE THREAT OF MILITANT ISLAM SUPPORTED CHIEFLY BY IRAN TO THE
PERSONAL SECURITY OF THEIR CITIZENS

IN EGYPT ATTACKS BY MILITANT ISLAMIC GUNMEN ON RELIGIOUS MINORITIES
TOURISTS AND THE SECURITY FORCES HAVE BECOME ALMOST ROUTINE JORDAN FOUND
TWO MEMBERS OF ITS PARLIAMENT GUILTY OF ATTEMPTING TO OVERTHROW THE
GOVERNMENT OF KING HUSSEIN SAUDI ARABIA'S KING FAHD RECENTLY WARNED THAT HE
WOULD NOT TOLERATE THE EXPLOITATIONS OF MOSQUES BY THOSE SEEKING TO
UNDERMINE HIS REGIME

ISRAELI PRIME MINISTER YITZHAK RABIN MIGHT HAVE THOUGHT THAT THE BEST WEAPON
AGAINST THIS PALESTINIAN BRAND OF MILITANT ISLAM WAS THE PEACE PROCESS IT
SEEMED LOGICAL AFTER ALL THAT IF THE PALESTINIAN ARABS WERE GIVEN A SENSE
THAT THE ISRAELI GOVERNMENT WANTED TO CLOSE A DEAL IN THE NEAR TERM THE
FORCES OF MODERATION WOULD BE STRENGTHENED SO MR RABIN DECLARED A GOAL OF
REACHING AN INTERIM AGREEMENT OVER THE WEST BANK AND GAZA STRIP WITHIN SIX
TO NINE MONTHS DESPITE THE FACT THAT THIS UNDERMINED HIS OWN BARGAINING
POWER HE FROZE SETTLEMENTS FREED PRISONERS AND THOUGH STILL OPPOSING
NEGOTIATIONS WITH THE PALESTINE LIBERATION ORGANIZATION PUSHED THROUGH
PARLIAMENTARY REPEAL OF THE LAW THAT MADE CONSULTATIONS BETWEEN WEST BANK
RESIDENTS AND YASSER ARAFAT ILLEGAL

IF THERE WAS A MISTAKE IN ISRAELI THINKING IT WAS THAT THE PEACE PROCESS
WOULD STOP THE GROWTH OF HAMAS AN ACRONYM FOR THE ISLAMIC RESISTANCE
MOVEMENT IN THE ALLEYS OF GAZA ITS POWER IS NOT AFFECTED BY NEWSPAPER
REPORTS OF ISRAELI CONCESSIONS IN THE WASHINGTON PEACE TALKS AS WITH THE
NATIONALIST MOVEMENTS THAT SEIZED POWER IN EGYPT AND SYRIA IN THE 1950S
MILITANT ISLAM DID NOT GROW OUT OF IDEOLOGICAL INSPIRATION ALONE IT MUST
ALSO RELY ON TWO IMMEDIATE FACTORS MONEY AND ORGANIZATION

MONEY IS PARTICULARLY IMPORTANT FOR HAMAS ITS MAIN COMPETITOR THE PLO
SUPPORTED SADDAM HUSSEIN AND SO LOST ITS PERSIAN GULF SOURCES OF INCOME
TENS OF MILLIONS OF DOLLARS IN SAUDI ARABIAN AID NOW GOES TO HAMAS ON TOP OF
THE ALREADY SUBSTANTIAL SUPPORT THAT IT RECEIVES FROM IRAN THIS SHIFT IN
THE FINANCIAL BALANCE OF POWER TO HAMAS GIVES IT A DECISIVE ADVANTAGE IN THE
COMPETITION FOR LOYALTY IN THE PALESTINIAN STREET ESPECIALLY IN THE POVERTY
OF THE GAZA STRIP

ISRAEL'S TWOYEAR DEPORTATION OF ISLAMIC MILITANTS UNDERCUT THE
ORGANIZATIONAL INFRASTRUCTURE OF HAMAS AND ISLAMIC JIHAD IN THE ADMINISTERED
TERRITORIES BUT IT DID NOT AFFECT THE SUPPLY OF FUNDS FROM ANY NEW
PAYMASTERS THAT MAY ARISE PERHAPS SAUDI ARABIA COULD BE PRESSURED BY THE
WEST TO STOP FUNDING PALESTINIAN FUNDAMENTALISM

ONE LESSON OF THE PAST WEEKS IS THAT ECONOMIC DEVELOPMENT FOR THE REFUGEE
POPULATIONS OF THE WEST BANK AND GAZA STRIP CAN NO LONGER BE MADE HOSTAGE TO
THE COMPLETION OF A POLITICAL AGREEMENT THE MAP OF MILITANT ISLAM IN THE
TERRITORIES LARGELY COINCIDES WITH THE MAP OF POVERTY

SOME ISRAELIS HAVE BEEN TEMPTED TO SAY THAT THE DIPLOMATIC ANSWER TO HAMAS
AND ISLAMIC JIHAD IS FOR ISRAEL TO OPEN A DIALOGUE WITH THE PLO THIS CAMP
IGNORES THE FACT THAT PLO TERRORISM AGAINST ISRAEL CONTINUES JUST LAST
DECEMBER THE PLO'S DOMINANT DIVISION FATAHARAFAT ATTEMPTED AN ATTACK ON
THE BEACHES OF EILAT IN THE TERRITORIES FATAH IS RESPONSIBLE FOR FAR MORE
PALESTINIAN DEATHS THAN HAMAS

TRYING TO PLAY THE PLO AND HAMAS OFF AGAINST ONE ANOTHER MEANS CONFRONTING
MANY OF THE DILEMMAS THAT THE US FACED WHEN IT TRIED TO PLAY IRAQ OFF
AGAINST IRAN DURING THE 1980S AS RADICAL NATIONALISTS BOTH IRAQ AND THE
PLO ARE READY TO ADVANCE THEIR INTERESTS THROUGH DIPLOMATIC AND MILITARY
MEANS FOR THE FUNDAMENTALIST THERE IS NO ROOM FOR EVEN CONSIDERING
DIPLOMACY MR RABIN DOESN'T DISTINGUISH BETWEEN DIFFERENT PALESTINIAN
ORGANIZATIONS HIS STRATEGY IS TO DEAL WITH MODERATE PALESTINIANS WHO BEAR
THE DAILY BURDEN OF THE INTIFADA AND ARE MORE LIKELY TO STRIKE A DEAL

WITH ALL THIS THE DEPORTATIONS HAVE RAISED A NUMBER OF QUESTIONS MOST
IMPORTANTLY OVER THE IMPLICATIONS FOR THE PEACE PROCESS BY VIRTUE OF THE
FACT THAT MILITANT ISLAM IS ALSO THE ENEMY OF THE ARAB STATES THAT ISRAEL IS
NEGOTIATING WITH IT IS NOT SURPRISING THAT ARAB FOREIGN MINISTERS DECIDED
UNCONDITIONALLY TO CONTINUE NEGOTIATIONS

THERE IS ALSO THE QUESTION ABOUT THE MATTER OF DUE PROCESS BEFORE THE
DEPORTATIONS WERE CARRIED OUT THE DEPORTEES HAVE THE RIGHT TO APPEAL BUT
THE NEEDS OF A DEMOCRACY UNDER SIEGE TO MOVE SWIFTLY AGAINST MILITANT ISLAM
FORCED THE LIBERAL ISRAELI GOVERNMENT TO ADOPT PROCEDURES THAT ITS
CONSERVATIVE LIKUD PREDECESSORS DID NOT A MORE STEADY WAR ON TERRORISM
COULD PERHAPS AVERT THE NEED FOR SUCH DRASTIC ACTION IN THE FUTURE

ELSEWHERE IN THE MIDDLE EAST THE PRICE EXACTED BY MILITANT ISLAM FROM THE
DEMOCRATIC PROCESS IS EVEN GREATER ITS TEMPORARY SUCCESSES IN ALGERIAN AND
JORDANIAN ELECTIONS HAVE DIMMED THE PROSPECTS FOR DEMOCRATIZATION OF THE
REGION MILITANT ISLAM DOES NOT JUST PRODUCE RELIGIOUS TERRORISM IT
CHALLENGES NATIONS TO COME UP WITH A DEFENSE THAT DOES NOT ERODE DEMOCRATIC
FREEDOMS

MR GOLD IS THE DIRECTOR OF THE US FOREIGN AND DEFENSE POLICY PROJECT AT
THE JAFFEE CENTER FOR STRATEGIC STUDIES IN TEL AVIV 9301070051 930107
KEATING CONVICTED ON CRIMINAL CHARGES STEMMING FROM LINCOLN S&L SCANDAL 
 BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL

LOS ANGELES A FEDERAL COURT JURY FOUND CHARLES H KEATING JR GUILTY OF
MULTIPLE RACKETEERING AND FRAUD CHARGES CULMINATING THE CRIMINAL
PROCEEDINGS AGAINST THE MOST NOTORIOUS FIGURE OF THE THRIFT CRISIS

MR KEATING FORMER CHAIRMAN OF THE PARENT COMPANY OF CALIFORNIA'S FAILED
LINCOLN SAVINGS & LOAN ASSOCIATION WAS CONVICTED ON ALL 73 COUNTS IN A
WIDERANGING FEDERAL INDICTMENT ALSO FOUND GUILTY WAS HIS SON CHARLES
KEATING III A FORMER EXECUTIVE VICE PRESIDENT OF THE PARENT COMPANY

THE ELDER MR KEATING WHO IS 69 YEARS OLD WAS PREVIOUSLY CONVICTED ON
STATE SECURITIESFRAUD CHARGES AND IS CURRENTLY SERVING A 10YEAR SENTENCE
AT THE CALIFORNIA MEN'S COLONY IN SAN LUIS OBISPO HE APPEARED GAUNT IN A
DARK BUSINESS SUIT YESTERDAY

AS HE HEARD THE VERDICTS AGAINST HIS 37YEAROLD SON READ ONE BY ONE MR
KEATING PRESSED HIS PALMS TOGETHER AS IF IN PRAYER WHEN THE VERDICTS
AGAINST HIM WERE RECITED SOON AFTER HE TURNED TO HIS SON AND QUIETLY ASKED
ARE YOU OKAY THE YOUNGER MR KEATING NODDED

IN THE TWOMONTH FEDERAL CRIMINAL TRIAL PROSECUTORS PROVED THAT MR KEATING
USED A SERIES OF UNLAWFUL SCHEMES TO SIPHON MONEY OUT OF LINCOLN FOR HIS OWN
BENEFIT THIS CONVICTION STANDS AS CONCRETE PROOF OF THE JUSTICE
DEPARTMENT'S LONGSTANDING COMMITMENT  TO CONVICT THOSE WHO LOOTED OUR
FINANCIAL INSTITUTIONS ATTORNEY GENERAL WILLIAM P BARR SAID IN A
STATEMENT

YESTERDAY'S VERDICT CARRIES A POSSIBLE SENTENCE OF MORE THAN 500 YEARS FOR
THE ELDER MR KEATING AND MORE THAN 450 YEARS FOR HIS SON WHO WAS CONVICTED
OF ALL 64 COUNTS THAT APPLIED TO HIM ADDITIONALLY BOTH MEN FACE FORFEITURE
AND RESTITUTION ORDERS OF MORE THAN 250 MILLION

A SENTENCING HEARING IS SCHEDULED FOR MARCH US DISTRICT JUDGE MARIANA
PFAELZER IS EXPECTED TO DETERMINE WHETHER THE FEDERAL AND STATE SENTENCES
WILL RUN CONCURRENTLY

STEPHEN C NEAL THE ELDER MR KEATING'S LAWYER SAID HE PLANS TO APPEAL THE
VERDICTS ON GROUNDS THAT THEY WEREN'T SUPPORTED BY THE EVIDENCE HE
QUESTIONED THE FEDERAL GOVERNMENT'S DECISION TO PROSECUTE HIS CLIENT AFTER
MR KEATING ALREADY BEEN FOUND GUILTY IN STATE COURT I THINK THE WHOLE
STORY OF CHARLIE KEATING AND HIS FAMILY CONTINUES TO BE ONE OF EXTRAORDINARY
LITIGATION EXCESS HE SAID

THE STATE CONVICTIONS STEMMED FROM A SEPTEMBER 1990 INDICTMENT THAT FOCUSED
NARROWLY ON FALSE STATEMENTS MADE DURING THE SALE OF HIGHRISK BONDS OF THE
PARENT COMPANY AMERICAN CONTINENTAL CORP AT LINCOLN OFFICES AMERICAN
CONTINENTAL WAS BASED IN PHOENIX

THE FEDERAL CONVICTION WAS ON BROADER ALLEGATIONS THAT MR KEATING USED
STRAW BUYERS TO PURCHASE ASSETS OF LINCOLN SUBSIDIARIES AT INFLATED
PRICES LATER THE BUYERS WERE SECRETLY REIMBURSED FOR THEIR DOWN PAYMENTS
WITH LINCOLN FUNDS

AS A RESULT OF THE TRANSACTIONS AMERICAN CONTINENTAL BOOKED PHONY INCOME OF
AT LEAST 150 MILLION ITS INFLATED BALANCE SHEET GAVE THE APPEARANCE OF
STABILITY THAT THE COMPANY NEEDED TO MARKET THE BONDS TO LINCOLN DEPOSITORS
THE APPARENT PROFITS ALSO TRIGGERED PAYMENTS FROM LINCOLN TO ITS PARENT
UNDER A TAXSHARING AGREEMENT BETWEEN THE TWO ENTITIES

AMERICAN CONTINENTAL'S JUNK BONDS BECAME WORTHLESS IN APRIL 1989 WHEN THE
COMPANY FILED FOR FEDERAL BANKRUPTCYLAW PROTECTION FROM CREDITORS AND
LINCOLN WAS SEIZED BY FEDERAL REGULATORS THE COST TO TAXPAYERS OF LINCOLN'S
FAILURE WAS ESTIMATED TO BE 26 BILLION

AMONG THE PROSECUTION'S STAR WITNESSES WAS MR KEATING'S FORMER TOP AIDE AND
FORMER AMERICAN CONTINENTAL PRESIDENT JUDY WISCHER SHE TESTIFIED THAT SHE
AND MR KEATING DIDN'T TELL INDEPENDENT AUDITORS ABOUT SECRET INDUCEMENTS
AND BUYBACK PROMISES UNDERLYING 14 TRANSACTIONS THAT GENERATED MILLIONS OF
DOLLARS IN PROFIT FOR LINCOLN AND ITS PARENT

THE GOVERNMENT'S CASE WAS AIDED BY SEVEN OTHER FORMER AMERICAN CONTINENTAL
AND LINCOLN INSIDERS WHO PLEADED GUILTY AND AGREED TO COOPERATE WITH
PROSECUTORS SEVERAL OF THEM TESTIFIED THAT MR KEATING USED LINCOLN'S
FEDERALLY INSURED FUNDS TO PURCHASE OPULENT REAL ESTATE AND PERSONAL ITEMS
FOR HIS FAMILY'S USE PROFLIGATE SPENDING CONTINUED UP TO THE EVE OF
INSOLVENCY WITNESSES SAID

IN CIVIL LITIGATION RELATED TO LINCOLN'S COLLAPSE FEDERAL JUDGE RICHARD
BILBY LAST OCTOBER REDUCED TO ABOUT 1 BILLION FROM MORE THAN 3 BILLION A
JURY'S AWARD OF DAMAGES AGAINST MR KEATING AND THREE CODEFENDANTS MR
KEATING DIDN'T PRESENT A DEFENSE IN THAT CASE CLAIMING HE WAS INSOLVENT HE
IS APPEALING THE CALIFORNIA CONVICTION A CIVIL ACTION BY THE SECURITIES AND
EXCHANGE COMMISSION IS PENDING

IN THE FEDERAL CRIMINAL TRIAL MR KEATING TOOK THE STAND AND IN SOBER EVEN
TONES CONTENDED THAT THE LAND DEALS WERE ALL LEGITIMATE MR NEAL HAD ARGUED
THAT THE GOVERNMENT WAS TRYING TO RETROACTIVELY CRIMINALIZE BUSINESS
DECISIONS THAT HIS CLIENT MADE DURING A BOOM TIME IN THE REAL ESTATE MARKET

THE ATTORNEY ALSO CLAIMED MR KEATING WAS THE TARGET OF FEDERAL OFFICIALS
PROVOKED BY HIS ANTIREGULATORY STATEMENTS ALTHOUGH JUDGE PFAELZER RULED AT
THE OPENING OF THE TRIAL THAT MR NEAL COULDN'T MAKE ANY BROAD CLAIMS
AGAINST REGULATORS UNLESS PROSECUTORS RAISED SPECIFIC CONTENTIONS ON THAT
SUBJECT

THE PROSECUTORS AVOIDED THE ISSUE OF MR KEATING'S TANGLES WITH REGULATORS
SUCH AS THE FINANCIER'S LOBBYING OF THE KEATING FIVE SENATORS TO INTERCEDE
ON HIS BEHALF WITH REGULATORS IN APRIL 1987 9301070050 930107 BUSINESS
BRIEF FINA INC DEADLINE FOR VENTURE ACCORD WITH SAUDI GROUP PASSES

FINA INC SAID THAT ITS YEAREND 1992 DEADLINE FOR WRAPPING UP DETAILS ON AN
OIL REFINING JOINT VENTURE WITH SAUDI BUSINESSMEN PASSED WITHOUT AN
AGREEMENT

FINA A DALLASBASED REGIONAL OIL COMPANY SAID IT HAS BEEN INFORMED THAT
THE SAUDI GROUP IS STILL WORKING TO COMPLETE ALL INTERNAL PROCEDURES IN
SAUDI ARABIA

UNDER THE PROPOSED OUTLINE OF THE VENTURE DELTA INTERNATIONAL A GROUP OF
SAUDI BUSINESSMEN WOULD OWN HALF OF FINA'S US REFINING AND MARKETING
OPERATION WHICH INCLUDES TWO LARGE REFINERIES AND SEVERAL THOUSAND GASOLINE
STATIONS FINA HAS DECLINED TO COMMENT ON THE SIZE OF DELTA'S PROPOSED
INVESTMENT

FINA AN AFFILIATE OF PETROFINA SA OF BELGIUM HAS BEEN TRYING TO COMPLETE
THE TRANSACTION FOR ABOUT THREE YEARS AND SAID THE STICKING POINTS NOW
INVOLVE ISSUES WITHIN SAUDI ARABIA CONCERNING DELTA A DELTA SPOKESMAN SAID
THAT THE SAUDI INVESTORS BELIEVE STRONGLY IN THE DEAL ADDING THAT
THEY'RE WORKING DILIGENTLY TO COMPLETE IT

A FINA SPOKESMAN SAID THE COMPANY HASN'T ESTABLISHED A NEW DEADLINE TO
COMPLETE THE TRANSACTION 9301070049 930107 PERSONAL TECHNOLOGY  
BY WALTER S MOSSBERG

THE DAY OF THE HYDRA IS AT HAND

FOUR PIECES OF OFFICE EQUIPMENT PHOTOCOPIER FAX MACHINE SCANNER AND
LASER PRINTER SHARE MUCH OF THE SAME TECHNOLOGY ELECTRONICS SEERS HAVE
PREDICTED FOR YEARS THAT THEY WOULD MELD INTO ONE MULTIHEADED MACHINE

NOW OKIDATA A US UNIT OF OKI ELECTRIC INDUSTRY OF JAPAN HAS QUIETLY
STARTED SELLING JUST SUCH A PRODUCT CALLED THE DOCIT IT'S A
WELLDESIGNED COMPACT DESKTOP DOCUMENT PROCESSOR AS THE COMPANY LABELS
IT THAT HOOKS UP TO A STANDARD IBMCOMPATIBLE PC AND TAKES ADVANTAGE OF THE
COMPUTER'S POWER TO DO A WIDE RANGE OF JOBS I'VE BEEN TRYING ONE OUT FOR
SEVERAL WEEKS AND THOUGH IT HAS SOME DRAWBACKS IT REALLY DOES FUNCTION AS
ADVERTISED

DOCIT DOES THE WORK OF FOUR SEPARATE OFFICE MACHINES ACCEPTABLY WELL AT A
PRICE BELOW THE COMBINED COST OF BUYING THE DEVICES SEPARATELY THUS IT
SHOULD PROVE ATTRACTIVE FOR SMALL OFFICES THAT NOW HAVE TO BUY SOME OR ALL
OF THESE MACHINES FIND SPACE TO HOUSE THEM AND KEEP EACH STOCKED WITH
DIFFERENT PARTS AND SUPPLIES

THE BASE MODEL I TESTED THE DOCIT 3000 HAS A DISCOUNT PRICE OF ABOUT
3000 BUT I EXPECT THAT TO DROP TOWARD 2500 THIS YEAR AS THE MACHINE
BECOMES MORE WIDELY AVAILABLE A FANCIER MODEL THE DOCIT 4000 OFFERS
HIGHER RESOLUTION AND MORE PRINTING OPTIONS FOR ABOUT 3600 CURRENTLY

A FEW HYDRA DEVICES HAVE APPEARED IN THE PAST PRICED SO HIGH THAT THEY HAD
LITTLE OR NO IMPACT ON THE MARKET SOME COMPANIES HAVE MATED TWO OR THREE OF
THE FOUR BASIC FUNCTIONS BY LETTING A FAX MACHINE FUNCTION AS A LAME COPIER
OR BY GIVING A LASER PRINTER THE ABILITY TO RECEIVE FAXES BUT DOCIT IS A
MUCH MORE COMPREHENSIVE SOLUTION

AT FIRST GLANCE THE MACHINE LOOKS LIKE A LASER PRINTER OR A PLAINPAPER FAX
MACHINE THE KIND THAT PRINTS ON STANDARD OFFICE PAPER LIKE LASER PRINTERS
IT HAS A PAPERSUPPLY CARTRIDGE THAT HOLDS 200 SHEETS LIKE NEWER FAX
MACHINES OR COPIERS IT HAS A FEEDER FOR INSERTING AS MANY AS 25 LETTERSIZE
OR LEGALSIZE SHEETS AT A TIME

USERS CAN STROLL UP TO THE DOCIT AND MAKE COPIES OR SEND AND RECEIVE FAXES
BY USING A PUSHBUTTON CONTROL PANEL WITHOUT TOUCHING THE PC DOCIT CAN
REDUCE TWO SEPARATE ORIGINALS SO THEY FIT ON A SINGLE PAGE SIDE BY SIDE
AND IT CAN MERGE TWO ORIGINALS COMBINING THEM ONTO A SINGLE SHEET AT FULL
SIZE LIKE A DOUBLE EXPOSURE IN PHOTOGRAPHY

BUT THE FULL POWER OF DOCIT IS REALIZED THROUGH ITS WELLDESIGNED COMPANION
SOFTWARE DOCIT MANAGER WHICH RUNS IN CONJUNCTION WITH MICROSOFT WINDOWS
THE COMPANY IS LOOKING INTO MAKING A MACINTOSH VERSION OF DOCIT
AVAILABLE THIS SOFTWARE PERMITS USERS TO RECEIVE AND SEND FAXES DIRECTLY
TO OR FROM THE PC ELIMINATING THE NEED FOR A FAX MODEM IT CONTROLS THE
SCANNING OF HARDCOPY DOCUMENTS INTO THE PC EITHER THROUGH THE MACHINE'S
SHEET FEEDER OR A DETACHABLE HAND SCANNER THE PROGRAM ALSO LETS YOU EDIT
AND TOUCH UP SCANNED OR FAXED IMAGES

THE SOFTWARE IS EASY TO USE WITH LITTLE PRACTICE MY ONLY COMPLAINT IS THAT
IT OUGHT TO PROVIDE CLEARER FEEDBACK ABOUT THE PROGRESS OF FAXES BEING
TRANSMITTED DOCIT ALSO FUNCTIONS FINE AS A LASER PRINTER FROM STANDARD PC
APPLICATION PROGRAMS WITHOUT HAVING TO SWITCH TO DOCIT MANAGER IT CAN
EMULATE BOTH MAJOR PRINTER LANGUAGES POSTSCRIPT AND HEWLETTPACKARD'S AND
HAS A SPECIAL FASTPRINTING MODE THAT BYPASSES THE WINDOWS PRINTING PROCESS

LIKE ANY ALLINONE DEVICE HOWEVER DOCIT IS LIMITED BY SOME COMPROMISES
IT LACKS A GLASS SURFACE ON WHICH BOOKS OR OTHER BULKY DOCUMENTS CAN BE LAID
FOR COPYING OR SCANNING FOR THESE KINDS OF ORIGINALS YOU MUST USE THE HAND
SCANNER A MUCH MORE CUMBERSOME PROCESS

AND YOU HAVE TO INSTALL DOCIT BY ADDING A LARGE CIRCUIT BOARD AND CABLE TO
YOUR PC THIS PROCESS CAN BE FRUSTRATING WHICH ISN'T OKIDATA'S FAULT IT'S
A COMMON PC PROBLEM BUT I DID HAVE TO CALL OKIDATA'S TECHNICAL SUPPORT LINE
TO GET THE THING WORKING

IN ADDITION I FOUND THE QUALITY OF COPIES ON THE BASE 3000 MODEL SOMEWHAT
INFERIOR TO THE OUTPUT OF A STANDARD OFFICE COPIER THOUGH COPIES I'VE SEEN
FROM THE PRICIER 4000 MODEL WERE NOTICEABLY BETTER

DOCIT IS MEANT MOSTLY AS A PERSONAL UNIT IT ISN'T DESIGNED TO SERVE AS AN
INTEGRATED PART OF A COMPUTER NETWORK BUT IT CAN BE SHARED BY PCS ON A
NETWORK THROUGH THE PC TO WHICH IT IS CONNECTED USING NETWORK OPERATING
PROGRAMS

THE FIRST DOCIT UNIT OKIDATA SENT ME FOR REVIEW DIED AFTER ABOUT A WEEK DUE
TO AN ELECTRICAL FAILURE THAT OKIDATA CLAIMED WAS UNIQUE THE REPLACEMENT
DOCIT I GOT HAS WORKED FLAWLESSLY IN THE 2 1/2 WEEKS SINCE EVEN WHILE
RUNNING CONTINUOUSLY FOR DAYS AT A TIME

DOCIT SEEMS CERTAIN TO SPAWN IMITATORS SEVERAL OTHER BIG ELECTRONICS
COMPANIES INCLUDING CANON RICOH AND HEWLETTPACKARD ARE SAID TO BE
WORKING ON MULTIFUNCTION DEVICES AND A SMALL JACKSONVILLE FLA COMPANY
DIGITAL DESIGN PROMISES TO START SELLING THIS YEAR A HYDRA MACHINE WITH THE
PC BUILT IN FOR 800 OR 900 MORE THAN DOCIT'S CURRENT STREET PRICE

SO IT'S ODD THAT OKIDATA HAS MADE THE DOCIT HARD TO BUY THE COMPANY
DOESN'T SELL DIRECTLY TO CONSUMERS ISN'T ADVERTISING THE PRODUCT AND IS
MAKING IT AVAILABLE ONLY THROUGH DEALERS SUCH AS COMPUTERLAND STORES WHICH
SPECIALIZE IN MAXIMUM HANDHOLDING FOR CUSTOMERS NOT HIGHVOLUME SALES
OKIDATA SAYS IT WILL GRADUALLY EXPAND DISTRIBUTION OF THE MACHINES INTO MORE
MAINSTREAM RETAIL OUTLETS BUT THIS MARKETING STRATEGY SEEMS CURIOUSLY
RESTRAINED FOR SUCH A USEFUL WELLDONE PRODUCT THAT IS AHEAD OF THE
COMPETITION 9301070048 930107 TECHNOLOGY BRIEF NOVELL INC COMPANY
AT&T SIGN PACT ON COMPUTER PHONE LINK

NOVELL INC PROVO UTAH SAID IT SIGNED AN AGREEMENT WITH AMERICAN
TELEPHONE & TELEGRAPH CO TO DEVELOP AND MARKET PRODUCTS LINKING DESKTOP
COMPUTER NETWORKS AND BUSINESS TELEPHONE SYSTEMS

THE INITIAL PRODUCT FROM THE JOINT OPERATION WHICH WILL BE CALLED TELEPHONY
SERVICES WILL LINK NOVELL'S NETWARE DESKTOP COMPUTER SOFTWARE WITH AT&T'S
DEFINITY TELEPHONE COMMUNICATIONS SYSTEM CUSTOMERS WILL BE ABLE TO COMBINE
COMMON TELEPHONE FEATURES SUCH AS CONFERENCE CALLING WITH INFORMATION SUCH
AS DIRECTORIES STORED IN COMPUTER NETWORKS

THE SERVICE WILL BEGIN MARKETING PRODUCTS IN THE SECOND HALF AN AT&T
SPOKESWOMAN SAID THE MARKET FOR TELEPHONY SERVICES IS EXPECTED TO DOUBLE
EACH YEAR FOR THE NEXT FIVE YEARS AND REACH SEVERAL HUNDRED MILLION DOLLARS
ANNUALLY THE SPOKESWOMAN SAID

NOVELL SAID THE COMPANIES EXPECT TO DEVELOP FUTURE PRODUCTS INTEGRATING
COMPUTERS WITH ELECTRONIC MAIL FACSIMILE TRANSMISSIONS AND VOICE MAIL
9301070047 930107 LEISURE & ARTS NORTHWEST PURRS FOR FIRST PET  
BY SUSAN G HAUSER

PORTLAND ORE BLACKANDWHITE CATS ARE SELLING LIKE HOT CAKES HERE CAT
SHOPS THAT SPECIALIZE IN CAT KNICKKNACKS ARE RUNNING OUT OF
BLACKANDWHITECAT COFFEE MUGS DOORSTOPS CERAMIC FIGURES TEAPOTS ETC
AND THE OREGON HUMANE SOCIETY HAS FOUND HOMES FOR NEARLY EVERY
BLACKANDWHITE CAT THAT ONCE RESIDED AT ITS ANIMAL SHELTER

BUT DON'T TELL ME THIS IS THE ONLY PLACE IN THE NATION THAT'S COME UNRAVELED
OVER SOCKS CHELSEA CLINTON'S BLACKANDWHITE CAT SURELY WE'RE NOT THE ONLY
ONES REJOICING THAT THERE WILL BE A CAT IN THE WHITE HOUSE FOR THE FIRST
TIME SINCE THE CARTER ADMINISTRATION

AFTER MAKING A NUMBER OF INQUIRIES AROUND THE COUNTRY I'M SORRY TO REPORT
THAT NOBODY OUTSIDE PORTLAND SEEMS TO CARE SURE THERE WAS THE PHOTO OF
SOCKS SURROUNDED BY PHOTOGRAPHERS THAT RAN IN NEARLY EVERY NEWSPAPER IN THE
COUNTRY BUT BY NOW SOME PEOPLE THINK THAT'S OLD NEWS

THERE WAS ABOUT A WEEK WHEN THERE WASN'T ANY NEWS SO SOCKS FILLED THE
SPACE THERE FOR A LITTLE WHILE SAID CHAD GRIFFIN A CLINTONGORE PRESS
AIDE WHOM I REACHED BY PHONE IN LITTLE ROCK ARK

I TOLD MR GRIFFIN THAT IN PORTLAND WE DON'T LET THE OLD CAT DIE SO QUICKLY
HERE I TOLD HIM A SHOP CALLED THE CAT'S MEOW HAS SOLD HUNDREDS OF CARTOON
TSHIRTS THAT DEPICT SOCKS SAYING MOVE OVER MILLIE THERE'S A CAT IN THE
WHITE HOUSE NOW

THE CAT'S MEOW IS ALSO DOING A BRISK BUSINESS IN UNOFFICIAL PORTRAITS OF OUR
NEXT FIRST KITTY HUNDREDS OF PEOPLE ENTERED A DRAWING TO WIN THE ORIGINAL
A PAINTING OF SOCKS SEATED OUTSIDE THE WHITE HOUSE GATE DONE BY LOCAL
ARTIST NORMAN FORSBERG HUNDREDS MORE HAVE BOUGHT PRINTS TO HANG IN THEIR
HOMES

MR GRIFFIN WAS SURPRISED BY THIS NEWS NO YOU'RE JOKING HE SAID OH MY
GOSH I DIDN'T REALIZE SOCKS HAD BECOME THAT WELLKNOWN

WAKE UP AND SMELL THE CATNIP MR GRIFFIN

IT WAS THE CAT LOVERS OF AMERICA WHO MADE MR CLINTON'S ELECTION POSSIBLE
IN THE VIEW OF PAMELLA GIBSON OWNER OF THE CAT'S MEOW IN FACT MS GIBSON
HAS TAKEN TO CALLING HERSELF A DEMOCAT AND SHE THANKS HER FELLOW DEMOCATS
FOR PUTTING A CAT IN THE WHITE HOUSE AS FAR AS SHE'S CONCERNED MR CLINTON
SIMPLY RODE SOCKS'S TAIL INTO OFFICE

IN OTHER PARTS OF THE COUNTRY HOWEVER PEOPLE ARE NOT SO SMITTEN AT THE
OFFICES OF THE CHICAGO WHITE SOX FOLKS HAVE LITTLE OR NOTHING TO SAY ABOUT
CHELSEA'S SOX I MEAN SOCKS I DREW A SIMILAR BLANK FROM THE THEATER IN NEW
YORK CITY WHERE THE MUSICAL CATS HAS BEEN PLAYING FOR 10 YEARS THE FOLKS
THERE HAD NO COMMENT JUST STUNNED SILENCE REALLY WHEN I ASKED A PERFECTLY
SIMPLE QUESTION DO YOU THINK THAT HAVING A CAT IN THE WHITE HOUSE WILL
ENHANCE THE LONGEVITY OF THE PLAY SO THAT IT WILL RUN FOR SAY FOUR MORE
YEARS OR PERHAPS EVEN EIGHT MORE YEARS

SOCKS HIMSELF IS STILL VEILED IN MYSTERY AND MAYBE THAT'S WHY NOT EVERYONE
HAS AN OPINION THERE'S BEEN A NEWS BLACKOUT ON THE ANIMAL EVER SINCE MR
CLINTON GOT HIS BACK UP OVER PHOTOGRAPHERS' LURING SOCKS INTO CAMERA RANGE
WITH CATNIP THE OFFICIAL WORD IS ABOUT ALL AND IT IS WELL OFFICIAL THIS
IS WHAT MR GRIFFIN READ TO ME FROM A FACT SHEET

SOCKS IS TWO YEARS OLD A MALE DOMESTIC SHORTHAIR BLACK WITH WHITE
MARKINGS ON TWO FRONT FEET THROAT AND MUZZLE CHELSEA GOT HIM FROM A FRIEND
A FEW WEEKS AFTER ZEKE WAS KILLED ZEKE WAS A DOG I DON'T KNOW WHAT KIND

I PRESSED FOR MORE DETAILS AND LEARNED THAT SOCKS HAS BEEN NEUTERED AND THAT
HE'LL LIVE AT THE WHITE HOUSE IN SPITE OF CHELSEA'S FATHER'S ALLERGIES IT
HAS NOT YET BEEN DECIDED IF SOCKS WILL TAKE THE BUS OR RIDE AIR FORCE ONE
FROM LITTLE ROCK TO WASHINGTON

SOCKS WILL BE THE FIRST FELINE IN THE WHITE HOUSE SINCE AMY CARTER'S SIAMESE
CAT ROAMED THERE THIS TIDBIT I LEARNED FROM DEBRA PHILLIPSDONALDSON WHO
IS EDITOR OF THREE CAT MAGAZINES CAT FANCY CAT LOVERS AND CATS USA SHE
TOLD ME CAROLINE KENNEDY HAD A KITTEN BRIEFLY UNTIL HER FATHER'S ALLERGIES
FLARED UP

BEFORE THAT CALVIN COOLIDGE WAS THE MOST RECENT CAT FANCIER IN THE WHITE
HOUSE HE HAD SEVERAL CATS AS DID TEDDY ROOSEVELT THE WIFE OF RUTHERFORD
B HAYES OWNED ONE OF THE FIRST SIAMESE CATS EVER BROUGHT TO THE US
ABRAHAM LINCOLN USED TO STRETCH OUT HIS LONG LEGS AND PLAY WITH THE FAMILY
CATS ON THE FLOOR EVEN GEORGE WASHINGTON IS THOUGHT TO HAVE BEEN A CAT
LOVER BECAUSE THERE IS A HINGED CAT DOOR AT MOUNT VERNON

IN PORTLAND ONE OF OUR LEADING CITIZENS IS A CAT BOB THE WEATHER CAT
EVERY FRIDAY NIGHT BOB FORECASTS THE WEEKEND WEATHER ON TELEVISION BY
APPEARING IN APPROPRIATE COSTUMES HAT AND MUFFLER FOR SNOW SUNGLASSES AND
STRAW HAT FOR FAIR SKIES ETC

WE ALSO HAVE A NEW MAYOR BY THE NAME OF KATZ I RECEIVED A WRITTEN STATEMENT
FROM VERA KATZ REGARDING THE NEW WHITE HOUSE CAT IN WHICH SHE SAID
SOMETHING CUTE ABOUT HOW THE FUR WILL FLY BUT WHAT I REALLY WANTED TO KNOW
WAS IF IN HONOR OF SOCKS SHE WOULD CHANGE THE SPELLING OF HER NAME TO
CATS

WITH THE DRAMATIC CHANGES IN SOCKS'S LIFE IN MIND I ASKED BOB THE WEATHER
CAT'S OWNER AND NAMESAKE BOB FOSTER IF CELEBRITY HAD SPOILED HIS CAT HE
ASSURED ME THAT BOB IS THE SAME OLD CAT BUT WITH A LOT MORE FRIENDS BOB
SENT OUT 400 CHRISTMAS CARDS THIS PAST HOLIDAY SEASON BUT DIDN'T SEND ONE
TO SOCKS BECAUSE SOCKS DIDN'T SEND HIM ONE

MR FOSTER DID HOWEVER OFFER SOCKS SOME FRIENDLY ADVICE BASED ON HIS
EXPERIENCE OF OWNING A RELATIVELY FAMOUS CAT

MS HAUSER IS A FREELANCE WRITER IN PORTLAND 9301070046 930107 QUARTERLY
MUTUAL FUNDS REVIEW FOUR BIG FUNDS SHOW SLIGHT PESSIMISM  BY JOHN
R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL

BUY BANK AND RAILROAD STOCKS CONSIDER NIBBLING AT SOME FALLEN DRUG SHARES
AVOID MOST CHEMICAL AND PAPER STOCKS

THOSE ARE SOME STRATEGY TIPS GLEANED FROM FIVE OF THE US'S BIGGEST MUTUAL
FUNDS AS 1993 BEGINS MOST OF THE MANAGERS THINK THE ECONOMY IS REVIVING
BUT FOUR OF THE FIVE ARE PESSIMISTIC TO ONE DEGREE OR ANOTHER ON THIS
YEAR'S OUTLOOK FOR THE US STOCK MARKET

MICHAEL PRICE MANAGER OF MUTUAL SHARES FUND IN SHORT HILLS NJ THINKS
1993 COULD SEE A SLOW UNWINDING OF THE LOW INTEREST RATES THAT BLESSED THE
MARKET LAST YEAR IF RATES ON BONDS AND BANK DEPOSITS RISE HE SAYS PEOPLE
WILL SLOWLY SHIFT OUT OF THE MARKET

MEANWHILE MR PRICE SAYS THE SUPPLY OF STOCK IS PLENTIFUL FED BY A STEADY
STREAM OF PUBLIC OFFERINGS SPINOFFS AND US LISTINGS BY FOREIGN
CORPORATIONS INVESTORS HE SAYS ARE GOING TO BE SWIMMING INTO THAT
STREAM ALL YEAR

SEVERAL MANAGERS ARE CONCERNED THAT STOCK PRICES HAVE REACHED A RAREFIED
ALTITUDE THE LEVELS ARE HIGH NOW AGAINST ANY TESTEARNINGS DIVIDENDS OR
BOOK VALUE COMPANIES' ASSETS MINUS LIABILITIES MR PRICE OBSERVES

BUT WOLODYMYR WRONSKYJ MANAGER OF DREYFUS FUND WOULDN'T BE SURPRISED TO
SEE THE DOW JONES INDUSTRIAL AVERAGE RISE 20 MORE TO AROUND 4000 AT YEAR'S
END THE AVERAGE CLOSED 1992 AT 330111 A REVIVING ECONOMY AND LOW
INFLATION SHOULD FAN CORPORATE PROFITS HE SAYS PARTICULARLY BECAUSE MANY
COMPANIES ARE LEAN WITH GOOD CONTROL OVER COSTS

HERE'S A RUNDOWN ON WHAT FIVE MANAGERS OF MULTIBILLIONDOLLAR PORTFOLIOS ARE
DOING FIGURES SHOWN FOR EACH FUND IN THIS ARTICLE ARE RETURNS FOR THE
FOURTH QUARTER FOR LONGERTERM PERFORMANCE FIGURES SEE THE ACCOMPANYING
TABLE WSJ JAN 7 1993

A STRONG ECONOMY PARADOXICALLY IS OFTEN BAD FOR THE STOCK MARKET SAYS
JAMES CRAIG MANAGER OF JANUS FUND IN DENVER YET HE IS POSITIONING HIS
PORTFOLIO FOR EXACTLY THAT

IF THE ECONOMY COMES ON STRONGER THAN EXPECTED MR CRAIG SAYS WE COULD
HAVE A ROUGH MARKET OVERALL BUT HIS OWN PORTFOLIO WILL REALLY HUM HE IS
HEAVY IN RAILROAD STOCKS BANK STOCKS AND OTHER ECONOMYSENSITIVE ISSUES
SUCH AS AIR PRODUCTS & CHEMICALS INC AND ENGELHARD CORP

HOW COULD A GOOD ECONOMY BE BAD FOR STOCKS MAINLY BY KICKING OFF A RISE IN
INTEREST RATES RISING RATES MAKE BONDS LOOK MORE ATTRACTIVE RELATIVE TO
STOCKS AND MAY CHOKE OFF SOME BUSINESS ACTIVITY FURTHERMORE RISING RATES
ALTER THE EQUATIONS THAT PROFESSIONALS USE TO VALUE STOCKS A STOCK
REPRESENTS A FUTURE STREAM OF CORPORATE EARNINGS OR DIVIDENDS AND THE
PRESENT VALUE OF THAT STREAM IS HIGHER IF THE INTEREST RATE USED IN THE
FORMULA IS LOW

BESIDES HIS ECONOMYSENSITIVE STOCKS MR CRAIG HAS SOME SPECIAL SITUATION
BETS HE LIKES PROGRESSIVE CORP INTEGON CORP PENN CENTRAL CORP AND
GUARANTY NATIONAL CORP ALL OF WHICH PROVIDE AUTO INSURANCE TO HIGHRISK
DRIVERS DRUNK DRIVING IS BEING SO MUCH MORE PROSECUTED THAT IT'S BECOMING
A BETTER BUSINESS HE SAYS AND COMPANIES HAVE STIFFENED COST CONTROLS

HE THINKS ROCHE HOLDING LTD AN OUTOFFAVOR DRUG STOCK IS A BIG BARGAIN
MERRILL LYNCH CO HE SAYS HAS BEEN AT THE FOREFRONT OF THE BROKERAGE
INDUSTRY IN GETTING A STEADY FLOW OF REVENUE FROM FEES AS OPPOSED TO
TRADING COMMISSIONS ABROAD HE LIKES TELEFONOS DE MEXICO AND CP POKPHAND
A HONG KONG COMPANY THAT SELLS CHICKEN AND MOTORCYCLES AMONG OTHER THINGS
IN CHINA

BANK STOCKS AND AUTO STOCKS ARE MAINSTAYS FOR BETH TERRANA MANAGER OF
FIDELITY EQUITY INCOME FUND IN BOSTON MS TERRANA WHO RACKED UP BIG GAINS
IN FINANCIAL STOCKS IN 1992 SAYS IT MAKES HER UNCOMFORTABLE TO USE THE
SAME STRATEGY TWO YEARS IN A ROW BUT SHE THINKS THE CASE FOR BANK SHARES IS
INTACT

CITICORP BANK OF NEW YORK NATIONSBANK CORP AND FIRST FIDELITY BANCORP ARE
HER BIGGEST HOLDINGS I THINK MOST MONEY MANAGERS LOOK AT THE BANKS AND SAY
A P/E STOCK PRICE DIVIDED BY PERSHARE EARNINGS OF 10 IS ALL THEY EVER GET
 LET'S GET OUT SHE SAYS BUT SHE THINKS THE INDUSTRY IS CHANGING THROUGH
COST CONTROL CONSOLIDATION AND IMPROVING LOAN QUALITY WE COULD SEE
DRAMATIC EARNINGS GROWTH FOR SEVERAL YEARS SHE SAYS

IN AUTOS HER BIG HOLDING IS CHRYSLER CORP THE GRAND CHEROKEE IS FLYING
OUT THE DOOR AT 20000 A VEHICLE WITH A HIGH PROFIT MARGIN SHE SAYS AND
OTHER NEW CHRYSLER CARS LOOK LIKE THEY'LL BE HOT SHE ALSO OWNS FORD MOTOR
CO MOSTLY FOR ITS FINANCIAL STRENGTH AND COST CONTROLS SHE DOESN'T OWN
GENERAL MOTORS CORP

FOR THE FIRST TIME IN FIVE YEARS MS TERRANA IS DABBLING IN DRUG STOCKS
NORMALLY SHE CAN'T OWN THEM BECAUSE HER FUND BUYS STOCKS WITH LOW P/E
RATIOS AND ABOVEAVERAGE DIVIDEND YIELDS BUT THE DRUG SECTOR WAS BRUISED
LAST YEAR AS INVESTORS WORRIED ABOUT HEALTH CARE COSTCUTTING PARTICULARLY
UNDER A CLINTON ADMINISTRATION

THE FALLEN SHARES OF BRISTOLMYERS SQUIBB CO APPEAL TO HER AND SHE IS
NIBBLING AT ELI LILLY & CO WARNERLAMBERT CO AND SCHERINGPLOUGH CORP
DRUG STOCKS ARE NO LONGER MARKET FAVORITES SHE SAYS THEY'RE NOT 1820
EARNINGS GROWERS ANY MORE BUT AT CURRENT PRICES THEY DON'T HAVE TO BE

UNLIKE INDUSTRIAL COMPANIES SHE SAYS DRUG COMPANIES HAVEN'T HAD TO CUT
COSTS SERIOUSLY UNTIL NOW ONCE THEY GET GOING SHE PREDICTS THEY WILL
FIND THAT A LOT OF EXPENSES CAN BE TRIMMED BOOSTING PROFITS CONSIDERABLY

WHAT WILL THE OVERALL MARKET BE LIKE CHOPPY IS MS TERRANA'S BEST GUESS

DAVID FISHER THINKS US INVESTORS STILL DON'T HAVE NEARLY ENOUGH EXPOSURE
TO STOCKS OVERSEAS PARTICULARLY EMERGING MARKETS

MR FISHER IS ONE OF THE MANAGERS OF NEW PERSPECTIVE FUND AND CHAIRMAN OF
ITS PARENT CAPITAL GROUP IN LOS ANGELES CAPITAL GROUP'S BIG FUNDS ARE
MANAGED BY TEAMS WITH EACH MANAGER HAVING CONSIDERABLE LATITUDE

NEW PERSPECTIVE FUND A GLOBAL FUND HAS ONLY ABOUT 30 OF ITS ASSETS IN THE
US EVEN THOUGH US STOCKS ACCOUNT FOR CLOSE TO 40 OF WORLD STOCK MARKET
VALUE VALUATION OUTSIDE THE US IS SIMPLY A LOT MORE ATTRACTIVE MR
FISHER SAYS

SURE MUCH OF EUROPE IS IN A RECESSION HE CONCEDES BUT HE SAYS EUROPEAN
COUNTRIES NOW STAND WHERE THE US DID THREE YEARS AGO ON THE THRESHOLD
OF A SERIES OF INTERESTRATE REDUCTIONS THAT WILL TEND TO PUSH UP STOCK
PRICES

MR FISHER BELIEVES IN PICKING COMPANIES NOT COUNTRIES BUT SOMETIMES
BOTTOMUP STOCKPICKING LEADS TO A COUNTRY CONCENTRATION RIGHT NOW HE IS
HEAVY IN SWEDEN WITH STOCKS SUCH AS LM ERICSSON AB ELECTROLUX AND ASEA
BROWN BOVERI LTD A SWEDISHSWISS COMBINATION IT ISN'T BECAUSE WE
DECIDED SWEDEN IS A WONDERFUL PLACE HE SAYS RATHER IT'S THAT SOME
SWEDISH COMPANIES LACKING A BIG HOME MARKET HAVE MADE THEMSELVES HIGHLY
COMPETITIVE INTERNATIONALLY

IN A WIDE VARIETY OF COUNTRIES MR FISHER IS INVESTING IN
TELECOMMUNICATIONS STOCKS AS THE WORLD BECOMES INCREASINGLY CLOSEKNIT HE
FIGURES THAT VOICE FACSIMILE AND COMPUTER TRANSMISSIONS WILL ALL INCREASE
SO HE HAS LOADED UP ON SUCH STOCKS AS ERICSSON NORTHERN TELECOM LTD OF
CANADA ALCATEL ALSTHOLM CGE FRANCE AMERICAN TELEPHONE & TELEGRAPH CO
TELEFONOS DE MEXICO CABLE & WIRELESS PLC BRITAIN AND HONG KONG
TELECOMMUNICATIONS LTD

HE ALSO THINKS US INVESTORS SHOULD HAVE PART OF THEIR PORTFOLIOS IN
EMERGING MARKETS WHICH HIS ANALYSTS THINK WILL ACCOUNT FOR 30 OF WORLD
ECONOMIC GROWTH IN THE NEXT DECADE EVEN THOUGH THEY MAKE UP LESS THAN 7 OF
THE WORLD'S STOCK MARKET VALUE

HE IS ESPECIALLY LOOKING FOR COMPANIES THAT CAN EXPLOIT THE LARGE POTENTIAL
MARKET IN CHINA NESTLE SA BASED IN SWITZERLAND HAS BEEN POSITIONING
ITSELF FOR THIS HE SAYS AS HAVE MANY HONG KONG COMPANIES

AT TIMES MR WRONSKYJ OF DREYFUS FUND IS SORRY HE'S A BIG FUND MANAGER
DOMESTICALLY RELATED STOCKS SHOULD DO WELL IN THE FIRST HALF OF 1993 HE
SAYS BUT WITH RECESSIONS IN MUCH OF EUROPE AND IN JAPAN COMPANIES THAT DO
A LOT OF BUSINESS ABROAD MAY STRUGGLE UNFORTUNATELY MOST STOCKS OF LARGE
CORPORATIONS HAVE SIGNIFICANT INTERNATIONAL EXPOSURE HE SAYS AND WITH 3
BILLION IN HIS PORTFOLIO HE HAS LITTLE CHOICE BUT TO BUY BIGCOMPANY
STOCKS

HOWEVER MR WRONSKYJ ISN'T TOO UPSET HE THINKS EUROPE AND JAPAN WILL
BOUNCE BACK BY YEAR'S END OR EARLY IN 1994 AND HE FIGURES STOCK PRICES WILL
ANTICIPATE THAT MOVE SIX MONTHS IN ADVANCE

RAILROADS SUCH AS CSX CORP ILLINOIS CENTRAL CORP AND UNION PACIFIC CORP
ARE AMONG HIS FAVORITE STOCKS THEY HAVE VERY GOOD CONTROL OVER EXPENSES
HE SAYS ONCE SHIPPING VOLUME INCREASES THEY SHOULD BE THE BENEFICIARIES

BANKS SUCH AS NATIONSBANK FIRST UNION CORP AND BANKAMERICA CORP ARE
TAKING ADVANTAGE OF THE DEMISE OF OTHER BANKS AND ARE WELL POSITIONED FOR
AN IMPROVING ECONOMY HE SAYS

THE DREYFUS MANAGER WOULD AVOID CHEMICAL PAPER AND METAL STOCKS BECAUSE HE
THINKS THEY WON'T BE ABLE TO PUSH THROUGH PRICE INCREASES HE ISN'T BUYING
OIL STOCKS EITHER THE NEXT FEW YEARS THERE SHOULD BE PLENTIFUL SUPPLIES OF
OIL HE SAYS NEW SOURCES ARE BEING DEVELOPED IN THE FORMER SOVIET UNION
ADDING TO AN ALREADYADEQUATE SUPPLY FROM THE MIDEAST

DUBIOUS THAT THE STOCK MARKET CAN MARCH EVER UPWARD MR PRICE OF MUTUAL
SHARES STARTS THE NEW YEAR WITH 17 OF HIS PORTFOLIO IN CASH

LIKE SEVERAL OF HIS COMPETITORS MR PRICE IS SWEET ON BANK STOCKS IN HIS
CASE FIRST CHICAGO CORP CHEMICAL BANKING CORP AND BANKAMERICA I LOVE
THEM HE SAYS ALL THREE BANKS HAVE ACCELERATED THEIR PROGRAMS TO PRUNE OUT
BAD LOANS OFTEN BY SELLING THEM TO OTHER FINANCIAL INSTITUTIONS AT A
DISCOUNT CHEMICAL AND BANKAMERICA HE SAYS WILL BENEFIT FROM SLICING
OVERHEAD FOLLOWING THEIR BIG MERGERS WITH RESPECTIVELY MANUFACTURERS
HANOVER CORP AND SECURITY PACIFIC CORP FIRST CHICAGO HAS A TOPNOTCH
CREDITCARD PROCESSING BUSINESS THAT HE THINKS IS INSUFFICIENTLY APPRECIATED
BY WALL STREET

MR PRICE IS ALSO TRYING TO SNATCH SOME DRUGSTOCK BARGAINS ON RECENT
WEAKNESS HE'S BEEN BUYING CIBAGEIGY INTERNATIONAL AG WARNERLAMBERT AND
SOME OTHERS THAT HE DECLINES TO NAME BECAUSE HE HAS PURCHASE ORDERS PENDING
OVER THE NEXT YEAR OR TWO I THINK YOU'RE GOING TO SEE GREAT COMPANIES WITH
BELOWMARKET P/ES UNTIL THIS BUSINESS CLARIFIES ITSELF HE SAYS THE
INDUSTRY HAS GONE TO CLINTON AND SAID IT IS NOT GOING TO RAISE PRICES AT
MORE THAN THE RATE OF INFLATION WALL STREET IS GOING TO STAY WORRIED FOR A
WHILE WE'RE GOING TO USE THAT WORRY TO ACCUMULATE A POSITION

UNLIKE MOST OF THE BIG FUND MANAGERS INTERVIEWED MR PRICE IS INTRIGUED BY
SEVERAL OIL AND GAS STOCKS ROYAL DUTCH PETROLEUM AND AMERADA HESS CORP ARE
HIS FAVORITES HE ALSO LIKES APCO ARGENTINA INC GLOBAL MARINE INC
USXMARATHON GROUP ORYX ENERGY CO AND PHILLIPS PETROLEUM CO ALWAYS A
BARGAIN HUNTER MR PRICE THINKS THE ENERGY GROUP IS A LOGICAL HUNTING
GROUND BECAUSE IT HAS BEEN A VERY POORLY PERFORMING SECTOR

HE IS ALSO DRAWN TO COMPANIES WHOSE PARTS HE JUDGES TO BE WORTH MORE THAN
THE WHOLE THESE INCLUDE SEARS ROEBUCK & CO AND GENERAL DYNAMICS CORP AND
HE IS TAKING A CLOSE LOOK AT A PAIR OF COMPANIES WHERE HE THINKS THE
DIRECTORS MAY SOON SHAKE THINGS UP INTERNATIONAL BUSINESS MACHINES CORP
AND EASTMAN KODAK CO 9301070045 930107 INTERNATIONAL WORLD WIRE 
 COMPILED BY RICHARD L HOLMAN

THE TWO DIRECTORS OF HUNGARIAN RADIO AND TELEVISION QUIT IN A PROTEST THAT
ESCALATES A TWOYEAR FIGHT ABOUT HOW TO RESTRUCTURE THE STATECONTROLLED
MEDIA

THE POLITICAL FACTION LED BY PRESIDENT ARPAD GONCZ WANTS INDEPENDENT MEDIA
WHILE PRIME MINISTER JOZSEF ANTALL WANTS TIGHT SCRUTINY OF PROGRAMS
APPOINTMENTS AND BUDGETS LEGISLATION TO OVERHAUL THE BROADCAST SECTOR
FAILED LAST YEAR

THE IMPASSE ALSO CAST DOUBT ON FOREIGN INVESTMENT IN HUNGARIAN RADIO AND TV
BECAUSE THE MEDIA MEASURE WAS LINKED TO A BILL ON DISTRIBUTION OF
FREQUENCIES TO SET UP THE FIRST COMMERCIAL STATIONS MORE THAN 200 REQUESTS
FOR FREQUENCIES ARE PENDING SHOULD THE STATE MONOPOLY END

BOTH SIDES AGREE THAT PARTIAL PRIVATIZATION AND FOREIGN PARTICIPATION IN
MEDIA WOULD BE BENEFICIAL BUT MR ANTALL HAD ACCUSED THE RADIO AND TV
DIRECTORS WHO RESIGNED OF FAVORING THE OPPOSITION SLANTING NEWS TO BE
CRITICAL OF HIS GOVERNMENT AND CONTRIBUTING TO ITS LOW POPULARITY MR GONCZ
HAD BLOCKED MR ANTALL'S EFFORTS TO REMOVE THE TWO DIRECTORS IN A CAMPAIGN
THAT INCLUDED AN INVESTIGATION OF ALLEGED FINANCIAL MISMANAGEMENT THE
DIRECTORS HAVE DENIED ANY WRONGDOING

TO BUILD UP ITS FOREIGNCURRENCY RESERVES AMID A SEVERE RECESSION MOLDOVA
HAS ORDERED BUSINESSES TO SELL 35 OF THEIR HARDCURRENCY EARNINGS TO THE
CENTRAL BANK OF THE FORMER SOVIET REPUBLIC VIOLATORS' PROCEEDS FROM EXPORTS
WILL BE SUBJECT TO CONFISCATION MOLDOVA CONTINUES TO USE THE RUSSIAN RUBLE
BUT INTENDS TO INTRODUCE ITS OWN CURRENCY MOLDOVA'S INDUSTRIAL PRODUCTION
PLUNGED 25 LAST YEAR AND FARM OUTPUT SANK 17 MORE THAN A THIRD OF ALL
PRODUCTION IS CONTROLLED BY THE SEPARATIST DNESTR REPUBLIC CAPITAL
INVESTMENT HAS SHRIVELED THOUGH WAGES JUMPED SEVENFOLD LAST YEAR PRICES
SOARED 17FOLD

CHINA WILL PUMP TWO BILLION YUAN 3425 MILLION IN EACH OF THE NEXT FIVE
YEARS INTO PROJECTS TO HELP MODERNIZE THE AGRICULTURAL SECTOR SPENDING WILL
BE AIMED AT WATER AND SOIL CONSERVATION FORESTRY AND CROP RESEARCH DESPITE
THE GOVERNMENT'S FOCUS ON INDUSTRIAL REFORMS IN PUSHING FOR A MARKET
ECONOMY ABOUT 80 OF CHINA'S PEOPLE STILL ARE INVOLVED IN FARMING BUT MANY
FARMERS ARE JOINING THE FREEMARKET BANDWAGON BY SWITCHING TO HIGHERVALUE
CROPS

HOME PRICES IN THE UNITED KINGDOM FELL LAST MONTH EXTENDING THE STRING OF
MONTHLY DECLINES TO SEVEN PRICES DROPPED AN AVERAGE OF 02 FROM NOVEMBER
AND 84 FROM A YEAR EARLIER ACCORDING TO A SURVEY BY NATIONWIDE BUILDING
SOCIETY THE MORTGAGE LENDER'S UNADJUSTED INDEX IN WHICH 100 EQUALS THE
1983 FIRSTQUARTER LEVEL STOOD AT 18705 LAST MONTH DOWN FROM 18739 IN
NOVEMBER AND 20423 IN DECEMBER 1991 HOME PRICE MOVEMENTS HAVE TAKEN ON NEW
IMPORTANCE IN THE BRITISH ECONOMY SINCE LAST FALL AS OFFICIALS WEIGH THEM
IN CREDITPOLICY DECISIONS

CHILE LAST YEAR ATTRACTED A RECORD TOTAL OF 138 BILLION OF FOREIGN
INVESTMENT UP 22 FROM 1991 THE GOVERNMENT SAID IT EXPECTS THE INFUSIONS
FROM ABROAD TO RISE THIS YEAR CANADIAN CAPITAL LED THE INVESTOR LIST FOR
THE SECOND YEAR IN A ROW FOLLOWED BY OUTLAYS FROM US INVESTORS

CHINA DISMISSED THE POSSIBILITY OF COMPROMISE ON HONG KONG'S REFORM
PROPOSALS VOWING TO REJECT EVEN WATEREDDOWN MOVES BY THE BRITISH COLONY'S
LEGISLATORS TO EXPAND DEMOCRACY CHINA WHICH IS TO TAKE OVER THE TERRITORY
IN 1997 REITERATED THAT HONG KONG MUST SCRAP THE REFORMS AS A CONDITION FOR
RESUMING SINOBRITISH TALKS ON THE SOVEREIGNTY TRANSFER THE INTRANSIGENCE
CONTINUED BEIJING'S DISREGARD FOR THE VIEWS OF HONG KONG'S 59 MILLION
RESIDENTS AS REFLECTED IN THE INCREASINGLY POPULIST LEGISLATIVE COUNCIL
WHICH COULD VOTE NEXT MONTH ON THE PROPOSALS THAT CHINA SAYS VIOLATE
SINOBRITISH ACCORDS

CONFUSION ABOUT A VALUEADDED TAX IN THE NEWLY INDEPENDENT CZECH REPUBLIC
HAS SENT PRICES SOARING

THE NEW TAX PART OF CZECH EFFORTS TO MAKE THE ECONOMY COMPATIBLE WITH
WESTERN MARKETS TOOK EFFECT JAN 1 WITH CZECHOSLOVAKIA'S DISSOLUTION IT
RANGES FROM 5 ON FOOD TO 23 ON INDUSTRIAL GOODS

THE GOVERNMENT HAD EXPECTED THAT THE VAT WOULD INCREASE PRICES NO MORE THAN
6 ON AVERAGE BUT ESTIMATES PUT THE BOOSTS BETWEEN 10 AND 20 AS THE LEVY
HAS CONFUSED BOTH CONSUMERS AND SELLERS FINANCE MINISTRY OFFICIALS
CHARACTERIZED SOME BUSINESSES AS IMMORAL THIEVES FOR CHARGING BOTH THE NEW
VAT ASSESSED AT VARIOUS STAGES OF PRODUCTION AND THE OLD SALES TAX TO
INFLATE PROFITS AND SUGGESTED CONSUMERS BOYCOTT OVERPRICED GOODS

LAST YEAR CZECHOSLOVAKIA HELD INFLATION TO 11 THE CZECH REPUBLIC EXPECTS
A 17 RATE THIS YEAR AS THE ECONOMY ADJUSTS TO THE SPLIT FROM SLOVAKIA

IN WHAT IS BILLED AS CHINA'S FIRST PROFESSIONAL BOXING EXHIBITION TWO
FORMER WORLD HEAVYWEIGHT CHAMPIONS WILL BE FEATURED IN FIVE BOUTS ON FEB 27
IN BEIJING JOURNALISTS DUBBED IT THE BRAWL AT THE GREAT WALL  AN
UNDERTAKER IN KURGAN RUSSIA IS OFFERING TO SWAP FUNERAL SERVICES VALUED AT
20000 RUBLES 48 FOR THE STATEISSUED 10000RUBLE VOUCHERS TO BE USED
TO ACQUIRE SHARES IN PRIVATIZED FIRMS GRAVE AND BURIAL COSTS ARE EXTRA
9301070043 930107 GENERAL DEVELOPMENT EXECUTIVES SENTENCED FOR
DEFRAUDING BUYERS

MIAMI AP A FEDERAL JUDGE SENTENCED FOUR GENERAL DEVELOPMENT CORP
EXECUTIVES TO PRISON TERMS RANGING FROM FIVE TO 10 YEARS FOR DEFRAUDING HOME
BUYERS

THE MEN WERE CONVICTED IN AUGUST OF FLEECING 10000 OUTOFSTATE CUSTOMERS
OF 117 MILLION BY SELLING PROPERTY AND HOUSES THAT AVERAGED 11400 MORE
THAN COMPARABLE PROPERTY THE CASE WAS ONE OF FLORIDA'S LARGEST REAL ESTATE
FRAUDS EVER

PROSECUTORS HAD SAID GENERAL DEVELOPMENT SALESMEN TARGETED WORKINGCLASS
ETHNIC AND OFTEN NONENGLISH SPEAKING FAMILIES IN THE NORTHEAST US THEN
PRESSURED THEM INTO BUYING THE OVERPRICED PROPERTY BY DENYING THEM ANY
INFORMATION ABOUT COMPETING COMPANIES

JUDGE LENORE NESBITT SENTENCED FORMER GENERAL DEVELOPMENT PRESIDENT ROBERT
EHRLING TO 10 YEARS IN PRISON ON 40 FRAUD COUNTS TORRE DEBELLA FORMER
SENIOR VICE PRESIDENT OF MARKETING WAS SENTENCED TO EIGHT YEARS ON 40
COUNTS WHILE CHAIRMAN DAVID BROWN AND MARKETING VICE PRESIDENT RICHARD
REIZEN EACH RECEIVED MAXIMUM FIVEYEAR SENTENCES ON ONE CONSPIRACY COUNT
CHARGE APIECE

ALL FOUR MEN ALSO MUST PAY 500000 IN RESTITUTION TO THE VICTIMS

DEFENSE ATTORNEYS HAVE SAID THEY WILL APPEAL

PRIOR TO THE TRIAL GENERAL DEVELOPMENT PLEADED GUILTY AND AGREED TO A 169
MILLION RESTITUTION PLAN BUT SOUGHT BANKRUPTCYLAW PROTECTION THE COMPANY
REORGANIZED IN ONE OF THE NATION'S LARGEST BANKRUPTCY CASES AND PAID OFF
HOMEOWNERS AND OTHER CREDITORS WITH STOCK IN THE RENAMED ATLANTIC GULF
COMMUNITIES CORP 9301070042 930107 TECHNOLOGY & HEALTH AT&T SETS STAKE
IN CANADA'S UNITEL  DEAL WOULD COUNTER LINK BETWEEN MCI STENTOR 
CREATE FOREIGN FOOTHOLD  BY JOHN J KELLER STAFF REPORTER OF THE
WALL STREET JOURNAL

AMERICAN TELEPHONE & TELEGRAPH CO IN A SLAP AT CANADIAN OPERATORS THAT
HAVE TEAMED UP WITH ITS RIVAL MCI COMMUNICATIONS CORP IS EXPECTED TO
ANNOUNCE TODAY THAT IT HAS BOUGHT A 20 STAKE IN CANADA'S UPSTART
LONGDISTANCE CARRIER UNITEL COMMUNICATIONS INC

WHILE AT&T AND UNITEL DECLINED TO COMMENT PEOPLE FAMILIAR WITH THE US
TELECOMMUNICATIONS GIANT'S PLANS SAID AT&T WAS DISCUSSING PUMPING AS MUCH AS
250 MILLION IN CASH AND NETWORK EQUIPMENT INTO UNITEL AND CONTRIBUTING
TECHNICAL EXPERTISE AND A MANAGER TO HELP RUN UNITEL'S NETWORK OPERATIONS

AT&T'S DEALMAKING IS SIGNIFICANT ON SEVERAL LEVELS WITH AT&T'S BACKING
UNITEL COULD PRESENT THE SAME KIND OF COMPETITIVE THREAT TO CANADA'S
ESTABLISHED LONGDISTANCE NETWORK THAT MCI NOW POSES TO AT&T IN THE US AND
AT&T'S MOVE IS AN AGGRESSIVE COUNTERATTACK TO MCI'S EXCLUSIVE MARKETING AND
TECHNOLOGY ARRANGEMENT WITH STENTOR THE LONGDISTANCE NETWORK CONSORTIUM
OWNED BY CANADA'S BIG TELEPHONE COMPANIES INCLUDING BELL CANADA THE UNITEL
SERVICE IS OWNED BY CANADIAN PACIFIC LTD AND ROGERS COMMUNICATIONS INC

MORE BROADLY A LINK WITH UNITEL HELPS AT&T TO BEGIN TRANSPLANTING ITS
SOPHISTICATED LONGDISTANCE SERVICES FIRMLY ONTO FOREIGN SOIL UNITEL POINTS
THE WAY TOWARD SIMILAR AGREEMENTS WITH OPERATORS IN OTHER COUNTRIES WHETHER
THEY ARE ESTABLISHED NATIONAL CARRIERS OWNED BY GOVERNMENT MONOPOLIES OR
NEWER MCILIKE NETWORKS THAT WILL SOMEDAY BUTT HEADS WITH THE OLDER
NETWORKS

THIS LETS AT&T EXPAND IN SUCH A WAY THAT THEY CAN CARRY TRAFFIC OUTSIDE THE
COUNTRY OVER FACILITIES THEY ACTUALLY OWN OR OWN A STAKE IN SAID JACK B
GRUBMAN A TELECOMMUNICATIONS INDUSTRY ANALYST AT PAINEWEBBER INC THE IDEA
IS TO ENHANCE TRAFFIC GROWTH AND KEEP MORE OF THE REVENUE FOR ITSELF

CANADA HE POINTED OUT IS THE LARGEST CALLING PARTNER WITH THE US
PARTICULARLY FOR MULTINATIONAL CORPORATIONS OF AT&T'S ROUGHLY 40 BILLION
IN ANNUAL LONGDISTANCE REVENUE CANADA ACCOUNTS FOR AT LEAST 1 BILLION HE
ESTIMATED OR ABOUT 15 OF AT&T'S INTERNATIONAL CALLING REVENUE

YESTERDAY AT UNITEL HEADQUARTERS IN TORONTO AT&T NEGOTIATORS LED BY AT&T
BUSINESS COMMUNICATION SERVICES PRESIDENT JOSEPH NACCHIO WERE IN INTENSE
FINAL DICUSSIONS OF AN INVESTMENT WITH CANADIAN PACIFIC EXECUTIVE VICE
PRESIDENT RON GAMEY AND ROGERS VICE PRESIDENT PHILIP LIND A CANADIAN
PACIFIC SPOKESMAN CONFIRMED THINGS HAVE BEEN CHANGING FROM ONE HOUR TO THE
NEXT  IT'S TOO TRICKY TO COMMENT ON AT THIS POINT HE SAID

AT&T'S BATTLE WITH MCI IN THE CANADIAN MARKET ESCALATED RECENTLY INTO A
PATENT SUIT WITH AT&T ACCUSING MCI OF SELLING TECHNOLOGY TO STENTOR WHICH
VIOLATES AT&T NETWORK SOFTWARE PATENTS AND MCI COUNTERSUING TO HAVE THE
PATENTS DECLARED INVALID

STENTOR'S USE OF MCI'S SOFTWARE WOULD ALLOW STENTOR TO OFFER MCILIKE
BUSINESS AND RESIDENTIAL SERVICES TO CANADIAN CUSTOMERS INCLUDING FRIENDS &
FAMILY WHICH MCI YESTERDAY SAID HAS SO FAR ATTRACTED 10 MILLION CUSTOMERS
MOSTLY FROM AT&T'S RANKS 9301070041 930107 WORLD MARKETS TOKYO SHARES
DRIFT DOWN LONDON STOCKS DECLINE AS MARKET IS PERCEIVED AS OVERVALUED
AFTER RALLY  A WALL STREET JOURNAL NEWS ROUNDUP

SHARE PRICES IN TOKYO DRIFTED LOWER IN LIFELESS TRADING WEDNESDAY LONDON
STOCKS FELL AS MANY INVESTORS BELIEVED THE MARKET REMAINS OVERVALUED AFTER
ITS RALLY AT THE END OF LAST YEAR

IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 15150 POINTS TUESDAY
FELL 5970 TO 1678288

THE NIKKEI FINISHED THE THURSDAY MORNING SESSION AT 1691311 UP 13023
POINTS

WEDNESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT 170 MILLION SHARES
COMPARED WITH 1671 MILLION SHARES A DAY EARLIER DECLINING ISSUES
OUTNUMBERED ADVANCING ISSUES 569347 THE TOKYO STOCK PRICE INDEX OR TOPIX
OF ALL FIRST SECTION ISSUES WHICH DECLINED 768 POINTS TUESDAY DROPPED
626 TO 129187

AMID GROWING PESSIMISM ABOUT THE TOKYO MARKET'S PROSPECTS BUYERS WERE
SCARCE EVEN PUBLIC PENSION FUNDS WHICH HAVE SUPPORTED THE EXCHANGE FOR THE
PAST MONTH AND PREVENTED PRICES FROM DROPPING SHARPLY KEPT AN EXTREMELY LOW
PROFILE INDEXLINKED ARBITRAGE SELLING AND PROFITTAKING ON SEVERAL BLUE
CHIPS PUSHED THE NIKKEI LOWER THOUGH SOME PROGRAMTRADING PURCHASES HELPED
THE INDEX JUMP NEAR THE CLOSE TO REBOUND FROM THE DAY'S LOWS

TOKYO MARKET SENTIMENT CONTINUED TO GROW PROGRESSIVELY DARKER EVEN BROAD
HINTS TUESDAY BY LEADING JAPANESE GOVERNMENT OFFICIALS INCLUDING PRIME
MINISTER KIICHI MIYAZAWA THAT AN EMERGENCY SUPPLEMENTARY BUDGET WILL BE
FORMED IN COMING MONTHS FAILED TO ELICIT ANY POSITIVE REACTION ON THE STOCK
MARKET WHERE PARTICIPANTS WERE TIRING OF PROMISES THOUGH THE NIKKEI
REMAINS UNDER PRESSURE IT ISN'T EXPECTED TO FALL BELOW 16000 GIVEN THE
PROTECTION FROM PUBLIC PENSIONFUND BUYING AS NEEDED

IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 76
POINTS TO 28260 THE FT 30STOCK INDEX ADDED 57 POINTS TO 21948 VOLUME
WAS A RELATIVELY ROBUST 7013 MILLION SHARES COMPARED WITH 7691 MILLION
SHARES A DAY EARLIER

TRADING WAS DULL WITHOUT ANY CORPORATE OR ECONOMIC NEWS TO PROVIDE AN
IMPETUS AFTER SEVERAL SESSIONS OF GAINS RECENTLY THE LONDON BOURSE
APPEARED TO BE CONSOLIDATING SPECULATION ABOUT A COMING RIGHTS ISSUE
PRESSURED SOME SECTORS AND KEPT INVESTORS CAUTIOUS

IN FRANKFURT SHARE PRICES ENDED LITTLE CHANGED AS THE MARKET WAS SUBDUED
BY A HOLIDAY FOR OTHER REGIONAL EXCHANGES AND UNCERTAINTY ABOUT THE
LIKELIHOOD OF A GERMAN INTERESTRATE CUT THE DAX 30STOCK INDEX EDGED DOWN
004 POINT TO 155638 REMARKS YESTERDAY MORNING BY HELMUT SCHLESINGER
PRESIDENT OF THE GERMAN BUNDESBANK THAT COMBATING INFLATION REMAINED THE
CENTRAL BANK'S PARAMOUNT GOAL DAMPED SOME MARKET PARTICIPANTS' HOPES FOR A
RATE REDUCTION SPECULATION THAT THE BUNDESBANK MIGHT MAKE SUCH A MOVE TODAY
TO HELP FIGHT OFF RENEWED SPECULATION AGAINST THE FRENCH FRANC HAD HELPED
THE DAX TO RALLY MORE THAN 25 POINTS ON TUESDAY BUT VOLUME YESTERDAY WAS
EXTREMELY LIGHT

IN PARIS SHARE PRICES ROSE IN HEALTHY VOLUME ON GROWING EXPECTATIONS FOR A
CUT IN EUROPEAN INTEREST RATES AND ON A RECOVERY BY THE FRENCH FRANC IN
FOREIGNEXCHANGE DEALINGS PRICES ALSO WERE HELPED BY A FLURRY OF BASKET
TRADING IN THE AFTERNOON BY ARBITRAGERS SEVERAL EUROPEAN MARKETS INCLUDING
THOSE IN MILAN MADRID AND STOCKHOLM WERE CLOSED FOR HOLIDAYS

AMONG THE BIG ASIAN AND PACIFIC EXCHANGES SYDNEY SHARES DROPPED PUSHED
DOWN BY PROFITTAKING AFTER THE MARKET'S RECENT GAINS AND BY CONTINUED
WEAKNESS IN THE AUSTRALIAN DOLLAR SINGAPORE PRICES FINISHED MIXED AFTER A
BATTLE BETWEEN BUYERS AND PROFITTAKERS HONG KONG STOCKS STRENGTHENED ON
PREVIOUS REPORTS SUGGESTING THE BRITISH COLONY'S GOVERNMENT WOULD COMPROMISE
IN ITS DISPUTE WITH CHINA SHARES THAT MIGHT FARE WELL FROM A SETTLEMENT OF
THE DEMOCRATICREFORMS ISSUE FARED WELL BUT SOME UTILITIES VIEWED AS
DEFENSIVE PLAYS LOST GROUND WHILE BANKS ROSE ON EARNINGS PROSPECTS

SEOUL EQUITIES DROPPED ON PROFITTAKING FOLLOWING YEAREND RALLIES BUT
ADVANCING ISSUES OUTPACED DECLINING ISSUES BECAUSE OF STRENGTH IN SMALL
MANUFACTURING STOCKS WELLINGTON SHARES FELL SHARPLY AND BROADLY AS RISING
INTEREST RATES IN NEW ZEALAND FUELED CONCERNS ABOUT HIGHER COSTS FOR
COMPANIES AND REDUCED PURCHASING POWER FOR CONSUMERS

TAIPEI SHARE PRICES PLUNGED 46 TO A 26MONTH LOW IN A ROUT SPARKED BY
POLITICAL UNCERTAINTIES FROM A COMING SHUFFLE OF GOVERNMENT OFFICIALS
FOLLOWING LAST MONTH'S LEGISLATIVE ELECTIONS IN WHICH THE OPPOSITION MADE
SIGNIFICANT GAINS AMID ALLEGATIONS OF VOTING IRREGULARITIES BUT SOME
FOREIGN FUND MANAGERS SAID THEY WERE LOOKING TO SNAP UP TAIWAN'S INEXPENSIVE
BLUE CHIPS GIVEN THE POSITIVE OUTLOOK FOR CORPORATE EARNINGS GROWTH FROM
THE GOVERNMENT'S SIXYEAR PLAN FOR HUGE INFRASTRUCTURE PROJECTS

AMONG CORPORATE DEVELOPMENTS IN ZURICH SWISS VOLKSBANK AFTER A TRADING
SUSPENSION SOARED 380 SWISS FRANCS OR 53 TO 1100 FRANCS 74767 AND
CS HOLDING PLUNGED 120 OR 57 TO 1980 A TOP SWISS BANKING REGULATOR SAID
THAT NOTHING STANDS IN THE WAY OF THE PROPOSED ACQUISITION OF VOLKSBANK BY
CS HOLDING FOR 164 BILLION SWISS FRANCS 111 BILLION AND THAT CS
HOLDING MEETS EQUITY CAPITAL REQUIREMENTS CS HOLDING STOCK WAS PRESSURED BY
SPECULATION THAT A CAPITAL INCREASE COULD BE NEEDED IN CONNECTION WITH THE
STOCKSWAP TRANSACTION ON VOLKSBANK

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 9301070040 930107 EPA REPORT
SPARKS ANTISMOKING PLANS  SOME BUSINESSES ALREADY MOVING CLOSER
TO BANS  A WALL STREET JOURNAL NEWS ROUNDUP

DEMOCRACY AT LEAST WHEN IT COMES TO SMOKING MAY SOON BE SWEPT OUT THE
DOOR AT RAYTHEON CO

PLANT MANAGERS AT THE DEFENSE CONTRACTOR CAN CURRENTLY SET THEIR OWN SMOKING
POLICIES FOR WORKERS AND EMPLOYEES IN THE COMPANY'S LEXINGTON MASS
HEADQUARTERS CAN SMOKE IN THEIR OFFICES SPECIAL LOUNGES OR A DESIGNATED
AREA OF THE CAFETERIA

YESTERDAY HOWEVER JUST 24 HOURS AFTER THE ENVIRONMENTAL PROTECTION AGENCY
CONCLUDED THAT PASSIVE TOBACCO SMOKE IS A HUMAN LUNG CARCINOGEN A
RAYTHEON SPOKESMAN SAID THE COMPANY WAS ALREADY PLANNING TO SIT DOWN WITH
UNION REPRESENTATIVES TO REVAMP ITS SMOKING POLICIES

THERE CLEARLY ARE NEW LIABILITY ISSUES A SPOKESMAN SAID

COMPANIES ACROSS THE COUNTRY BEGAN WEIGHING THEIR OPTIONS YESTERDAY IN THE
WAKE OF THE EPA'S DECISION TO DECLARE PASSIVE SMOKE AN ENVIRONMENTAL HEALTH
RISK MANY BUSINESSES WHERE SMOKE STILL LINGERS IN THE AIR INCLUDING
RESTAURANTS BARS AND TOBACCO COMPANIES THEMSELVES SAID THEY WOULD WAIT
TO SEE WHAT STEPS LOCAL GOVERNMENTS MIGHT TAKE BEFORE CHANGING THEIR
POLICIES

BUT SOME COMPANIES SAID THE EPA FINDINGS MIGHT GIVE THEM THE LEVERAGE NEEDED
TO BANISH SMOKING FROM THE WORKPLACE ENTIRELY

AT PERINI CORP A CONSTRUCTION AND DEVELOPMENT CONCERN BASED IN FRAMINGHAM
MASS MASSIVE FANS DRAW SMOKE FROM THE FEW SITES WHERE CIGARETTES ARE
PERMITTED ABOUT SEVEN YEARS AGO WHEN WE MADE THESE LOUNGES THE ONLY
PLACES YOU COULD SMOKE WE WERE AHEAD OF THE GAME SAYS DOUGLAS MURE VICE
PRESIDENT HUMAN RESOURCES

NOW HOWEVER MR MURE WONDERS IF OTHER STEPS ARE NEEDED SUCH AS MAKING THE
HEADQUARTERS SMOKEFREE THE EPA NEWS WILL GIVE US AMMUNITION IF WE DECIDE
TO TAKE THAT STEP HE SAYS

THE AMMUNITION APPEARS TO BE SUBSTANTIAL ACCORDING TO THE FEDERAL AGENCY'S
REPORT PASSIVE SMOKE IS RESPONSIBLE FOR ABOUT 3000 LUNGCANCER DEATHS EACH
YEAR IN THE US IN ADDITION THE EPA ESTIMATES THAT NONSMOKERS' EXPOSURE TO
SMOKE TRANSLATES INTO BETWEEN 150000 AND 300000 CASES OF BRONCHITIS AND
PNEUMONIA EVERY YEAR IN CHILDREN UP TO 18 MONTHS OLD BETWEEN 7500 AND
15000 OF THESE CASES RESULT IN HOSPITALIZATION THE EPA SAYS

AS A RESULT OF THE EPA RULING GREYHOUND LINES INC SAYS IT PLANS TO
REASSESS A SMOKING POLICY THAT HAD ALREADY GROWN INCREASINGLY RESTRICTIVE IN
RECENT YEARS

GREYHOUND BANNED SMOKING ON ITS BUSES IN 1990 AND FROM ITS DALLAS
HEADQUARTERS LAST YEAR BUT AT OTHER FACILITIES AROUND THE COUNTRY
EMPLOYEES ARE PERMITTED TO SMOKE IN THEIR PRIVATE OFFICES BREAK ROOMS AND
OTHER DESIGNATED AREAS ALTHOUGH NOT IN PLACES WHERE THEY DEAL WITH THE
PUBLIC SUCH AS AT TICKET COUNTERS MOST GREYHOUND TERMINALS ALSO HAVE
DESIGNATED SMOKING AREAS FOR PASSENGERS

ALL THAT MAY CHANGE GIVEN THE EPA FINDINGS WE WILL SERIOUSLY CONSIDER
ABANDONING SMOKING FROM ALL OF OUR LOCATIONS SAYS A COMPANY SPOKESMAN

AT GENERAL EMPLOYMENT ENTERPRISES INC OAK BROOK ILL THE COMPANY'S
CHAIRMAN AND PRESIDENT HERBERT IMHOFF SAYS THE EPA RULING GIVES HIM A
BETTER EXCUSE TO CRACK DOWN ON THOSE EMPLOYEES WHO STILL PUFF OF THE
COMPANY'S 25 OFFICES AROUND THE COUNTRY ONLY TWO OR THREE STILL ALLOW
SMOKING

WE'RE ALREADY A LONG WAY TOWARD BANNING SMOKING MR IMHOFF SAYS THIS
COULD TAP THE THING

ALREADY 34 OF EMPLOYERS BAN SMOKING IN THE WORKPLACE ACCORDING TO THE
AMERICAN LUNG ASSOCIATION ANTISMOKING ACTIVISTS SAY THEY HOPE THE EPA
REPORT WILL PROMPT STATE AND LOCAL GOVERNMENTS TO FOLLOW THE LEAD OF NEW
YORK MINNESOTA AND NEW HAMPSHIRE WHICH HAVE RESTRICTED SMOKING AT WORK
THOSE STATES DO ALLOW EMPLOYERS TO DESIGNATE SMOKING AREAS

THE FINDINGS WILL DEFINITELY SPARK SOME WORKPLACE BANS PREDICTS FRAN
DUMELLE DEPUTY MANAGING DIRECTOR OF THE AMERICAN LUNG ASSOCIATION BUT MANY
OF THESE ADDED RESTRICTIONS SHE SAYS WILL PROBABLY ORIGINATE WITH STATE
LEGISLATURES OR THE FEDERAL GOVERNMENT RATHER THAN WITH COMPANIES
THEMSELVES

SMALL COMPANIES MS DUMELLE NOTES OFTEN HAVE A TOUGHER TIME THAN LARGE
EMPLOYERS WHEN IT COMES TO RESTRICTING SMOKING USUALLY THE VERY LARGE
EMPLOYERS CAN DO THIS WHILE THE SMALL ONES FIND IT MORE DIFFICULT BECAUSE
THEY HAVE FEWER SMOKERS SHE SAYS IT'S A LOT EASIER TO TARGET 500 PEOPLE
THAN ONE PERSON

PERHAPS NO US COMPANIES ARE MORE STRAIGHTFORWARD IN ALL BUT ENCOURAGING A
SMOKING ENVIRONMENT FOR THEIR EMPLOYEES THAN TOBACCO MAKERS AND THE TWO
BIGGEST FIRMS PLAN TO STAND BY THAT APPROACH

WORKERS AT RJ REYNOLDS TOBACCO CO HEADQUARTERS WILL BE FREE TO CONTINUE
PUFFING AWAY IN PEACE DESPITE THE EPA STUDY AT THE COMPANY'S HEADQUARTERS
A MINIATURE VERSION OF THE EMPIRE STATE BUILDING IN DOWNTOWN WINSTONSALEM
NC WORKERS ARE FREE TO LIGHT UP AT THEIR DESKS AND IN THEIR OFFICES EVEN
THE CAFETERIA DOESN'T HAVE A NOSMOKING AREA

IT'S VERY PERMISSIVE SAYS A SPOKESWOMAN FOR REYNOLDS A UNIT OF RJR
NABISCO HOLDINGS CORP DESCRIBING THE COMPANY'S SMOKING POLICY IF PEOPLE
DIDN'T CARE FOR SMOKING I DON'T THINK THEY WOULD WORK HERE

IN NEW YORK MARLBORO MAKER PHILIP MORRIS COS IS EVEN EXEMPT FROM THE
NONSMOKING ORDINANCE THAT PROHIBITS CIGARETTE SMOKING IN MANY PUBLIC AREAS
THE COMPANY SAYS IT HAS NO PLANS TO SWITCH TO A MORE RESTRICTIVE POLICY
BECAUSE OF THE EPA STUDY WE ARE COMMITTED TO A POLICY OF ACCOMMODATING
BOTH SMOKERS AND NONSMOKERS SAYS STEVE PARRISH SENIOR VICE PRESIDENT
EXTERNAL AFFAIRS AT PHILIP MORRIS USA

PHILIP MORRIS AND OTHER TOBACCO COMPANIES YESTERDAY DISPUTED THE EPA
FINDINGS THEY CONTENDED THAT THE AGENCY'S STUDY IGNORED PREVIOUS RESEARCH
THAT FOUND NO STATISTICALLY SIGNIFICANT INCREASED RISK OF CANCER FROM SMOKE
WAFTING FROM A BURNING CIGARETTE RJ REYNOLDS SAID IN A STATEMENT THAT THE
ANNOYANCES CAUSED BY PASSIVE SMOKE CAN BE SOLVED BY IMPROVED VENTILATION

AT RESTAURANTS AND BARS AROUND THE COUNTRY A NUMBER OF OWNERS AND MANAGERS
ARE REACTING WITH SOME DESPAIR TO THE EPA RULING STILL MANY SAY THEY
AREN'T CHANGING THEIR POLICIES UNTIL THEY ABSOLUTELY HAVE TO

WHAT HAPPENED TO THE DAYS WHEN YOU COULD GO OUT AND HAVE SOMETHING TO EAT
AND LIGHT YOUR CIGARETTE LAMENTS BILL MCCLOSKEY MANAGER OF MANUEL'S
TAVERN IN ATLANTA THEY REALLY TAKE ALL THE FUN OUT OF EVERYTHING THE
ESTABLISHMENT HAS A SMOKING SECTION AND MOST SMOKERS ARE POLITE ABOUT
EXTINGUISHING THEIR CIGARETTES IF NEIGHBORS COMPLAIN MR MCCLOSKEY SAYS
STILL HE ANTICIPATES THAT THE DAY MAY SOON COME WHEN THE LAW WILL FORCE
MANUEL'S TO BAN SMOKING

CHRISTOPHER CAREY GENERAL MANAGER OF THE HUDSON RIVER CLUB A RESTAURANT IN
NEW YORK'S WORLD FINANCIAL CENTER SAYS OF THE EPA DECLARATION I DON'T
THINK IT WILL CHANGE OUR POLICY DRAMATICALLY INDEED HE ADDS THAT HE HAS
NO PLANS TO REORGANIZE THE DINING ROOM

THE RESTAURANT MAINTAINS A SMALL SMOKING SECTION APPROXIMATELY 10 OF
CAPACITY WHICH CHANGES ACCORDING TO RESERVATIONS I WOULD ANTICIPATE THERE
WILL BE INCREASED COMMENT FROM SOME CUSTOMERS SEATED IN ADJACENT AREAS MR
CAREY SAYS THEY'LL WANT TO SIT FURTHER AWAY

IN SEATTLE JERRY HAHN GENERAL MANAGER OF LEILANI LANES A FAMILYOWNED
BOWLING ALLEY SAYS THE EPA DECISION COULD CAUSE PROBLEMS IT'S A TOUGH
ONE HE SAYS ADDING WE AGREE SMOKING ISN'T GOOD FOR A PERSON'S HEALTH
BUT SMOKING IS A VERY STRONG PRESENCE IN OUR INDUSTRY COMPETITIVELY I'D BE
SHOOTING MYSELF IN THE FOOT IF I WAS THE ONLY ONE TO BAN IT

MR HAHN HAS RESTRICTED SMOKERS TO A CONCOURSE AREA AWAY FROM THE CENTER'S
36 LANES AND HE HAS ALSO BANNED PIPE AND CIGAR SMOKING

MOST OF THE LEILANI LANES EMPLOYEES SMOKE MR HAHN SAYS HOWEVER HE SAYS
THE EPA'S RULING WILL MAKE THE ALLEY CONSIDER A SMOKING BAN I JUST HOPE
HE SAYS I DON'T HAVE TO STAND HERE IN THE COLD LIGHT OF DAY AND BE FORCED
TO MAKE THAT DECISION SEE RELATED STORY PLANTIFFS' SUITS MAY PROD FIRMS
TO BAR SMOKING WSJ JAN 7 1993 9301070039 930107 MERRILL'S
ONCEREVOLUTIONARY CMA IS LOSING ITS EDGE  BY RANDALL SMITH STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK MERRILL LYNCH & CO'S CASH MANAGEMENT ACCOUNT REVOLUTIONIZED
WALL STREET

INTRODUCED 15 YEARS AGO THE CMA COMBINED ACCESS TO MONEYMARKET FUNDS WITH
CHECKWRITING CREDIT CARDS AND STOCK AND BOND TRADING HEAVILY PROMOTED AT
A TIME WHEN MONEY FUND RATES TOPPED 10 AND BANKS COULD PAY ONLY 5 1/2 THE
ACCOUNT BECAME MERRILL'S NO 1 SOURCE OF NEW CUSTOMERS ITS CMA CUSTOMERS
NOW ACCOUNT FOR 255 BILLION OF MERRILL'S 475 BILLION IN ASSETS

BUT TODAY THE CMA HAS LOST MUCH OF ITS ORIGINAL EDGE OVER THE YEARS ASSET
MANAGEMENT ACCOUNTS HAVE BECOME A COMMODITY PRODUCT OFFERED WITH MINOR
VARIATIONS BY MOST SECURITIES FIRMS MORE RECENTLY SHARPLY LOWER SHORTTERM
INTEREST RATES HAVE MADE THIS SORT OF ACCOUNT LESS ATTRACTIVE

A VARIETY OF NEWER PRODUCTS AND VEHICLES WRAP ACCOUNTS OFFERING
COMPREHENSIVE MONEY MANAGEMENT FOR A 3 ANNUAL FEE FINANCIAL PLANNERS WHO
PREFER DEALING THROUGH DISCOUNT BROKERS AND EVEN DESKTOP COMPUTER PROGRAMS
FOR FINANCIAL PLANNINGARE ALL VYING WITH THE CMA FOR INVESTORS' TIME AND
ATTENTION

I THINK WE'VE MOVED BEYOND THE CMA CONCEPT SAYS MARY MALGOIRE A
BETHESDA MD FINANCIAL PLANNER PEOPLE ARE GOING TO BE MUCH MORE
INTERESTED IN FINDING WAYS TO PUT MONEY ASIDE IN LONGTERM SAVINGS AND
INVESTMENTS

ALSO JUST AS RETAILERS AND COMPUTER MANUFACTURERS HAVE FACED COMPETITION
FROM DISCOUNT MAILORDER MERCHANTS MERRILL AND THE OTHER BIG WALL STREET
BROKERAGE HOUSES FACE MAILORDER COMPETITION FROM DISCOUNTERS WITH 800 PHONE
NUMBERS IT'S LIKE CATALOG SHOPPING SAYS GEORGE BARBEE A FINANCIAL
PLANNER AT PRICE WATERHOUSE INC

FOR INSTANCE MUTUAL FUND GIANT FIDELITY INVESTMENTS IS OFFERING AN ASSET
MANAGEMENT ACCOUNT SIMILAR TO THE CMA BUT WITHOUT THE CMA'S 100 ANNUAL
FEE SO IS BIG DISCOUNT BROKER CHARLES SCHWAB & CO

ROGER SERVISON PRESIDENT OF FIDELITY'S SMALLINVESTOR MARKETING ARM SAYS
THAT SINCE FIDELITY'S NOFEE ACCOUNT WAS FIRST OFFERED IN JULY 1992 THE
NUMBER OF THESE ACCOUNTS FIDELITY HAS BEEN OPENING HAS RISEN EIGHTFOLD TO
SEVERAL HUNDRED DAILY THE BULK OF THOSE SWITCHING FROM ANOTHER SECURITIES
FIRM HE SAYS COME FROM MERRILL

CMA ACCOUNTHOLDERS MR SERVISON SAYS TRADE MORE THAN THE AVERAGE
CUSTOMER AND ACCOUNT FOR A DISPROPORTIONATE AMOUNT OF MERRILL'S COMMISSION
REVENUE I THINK THOSE ACCOUNTS ARE EXTREMELY IMPORTANT TO MERRILL THEY'RE
AMONG THEIR BEST AND MOST PROFITABLE CUSTOMERS

MERRILL IS STILL FAR AHEAD OF THE COMPETITION BECAUSE OF ITS HEADSTART IN
THE 1970S MERRILL BUILT AND HAS HELD A COMMANDING TWOTHIRDS MARKET
SHARE IN THE NUMBER OF ASSET MANAGEMENT ACCOUNTS ITS CMA ASSETS HAVE GROWN
14 ANNUALLY SINCE 1987

MERRILL OFFICIALS NOTE THAT FIDELITY'S ASSET MANAGEMENT ACCOUNT DOESN'T
INCLUDE THE SERVICES OF AN INDIVIDUAL BROKER WHO CAN GIVE CUSTOMERS ADVICE
ON INVESTMENT ALTERNATIVES AND FINANCIAL PLANNING THE CMA SAYS MERRILL'S
MR STEFFANS STILL OFFERS THE ULTIMATE IN CHOICES FOR ASSET AND LIABILITY
ALLOCATION ANCHORING A RELATIONSHIP WITH A TRUSTED BROKER WHO CAN EXECUTE
TRANSACTIONS FROM STOCK TRADES TO CERTIFIED CHECKS

FIDELITY DOESN'T OFFER INVESTMENT ADVICE BUT SAYS IT CAN EXECUTE ALL OF THE
MECHANICS OF A BROKERAGE ACCOUNT BY OVERNIGHT DELIVERY IF NECESSARY
FIDELITY WILL ALSO CHOOSE MUTUAL FUNDS FOR CUSTOMERS FOR THAT IT CHARGES
1 OF THOSE ASSETS ANNUALLY

MERRILL'S CMA IS MORE THAN HOLDING ITS OWN COMPARED TO BANK CERTIFICATES OF
DEPOSIT WHICH HAVE MELTED DOWN FROM 116 TRILLION TWO YEARS AGO TO 880
BILLION TODAY INDEED WALL STREET'S ASSET MANAGEMENT ACCOUNTS ARE BEING
PROPPED UP BY AN INFLUX OF CUSTOMERS FROM BANKS WHERE FEES FOR BASIC
CHECKING ACCOUNTS ARE RISING AND CUSTOMERS ARE ALSO SUFFERING RATE SHOCK
WHEN OLDER HIGHYIELDING CERTIFICATES OF DEPOSIT MATURE ANOTHER CURRENT
CROWDPLEASER AVAILABLE IN WALL STREET'S ASSET MANAGEMENT ACCOUNTS
STATESPECIFIC MONEY FUNDS OFFERING INCOME FREE OF FEDERAL STATE AND LOCAL
TAXES

STILL THE 100 ANNUAL FEE NOW NETTLES SOME LONGTIME MERRILL CMA CUSTOMERS
LIKE RODNEY LARSON A FURNITURE SALES MANAGER WHO RUNS HIS PERSONAL FINANCES
FROM A DESKTOP COMPUTER AT HIS HOME IN DARIEN CONN

MR LARSON WHO WAS FIRST ATTRACTED TO THE CMA BY HIGH INTEREST RATES IN THE
1970S SAYS HE KEEPS THE ACCOUNT MAINLY TO PRESERVE THE RELATIONSHIP WITH
HIS MERRILL LYNCH BROKER A GOOD GUY WHOSE ADVICE HE VALUES IN PICKING
STOCKS AND OTHER INVESTMENTS BUT HE ALSO HAS ASSET MANAGEMENT ACCOUNTS AT
SCHWAB AND SHEARSON LEHMAN BROTHERS INC AND WOULD LIKE TO ELIMINATE THE
DUPLICATES TO SIMPLIFY HIS FINANCES

THE COMMISSIONS AND FEES ON MANY WALL STREET ASSET MANAGEMENT ACCOUNTS PUT
OFF PETER J ROMATOWSKI A CRIMINAL DEFENSE LAWYER AT CROWELL & MORING IN
WASHINGTON DC WHO ALSO MANAGES HIS MONEY BY COMPUTER I NEVER FELT THE
NEED TO PAY THE HIGH FEES FOR THE PACKAGE OF SERVICES HE SAYS INSTEAD HE
COMBINES A BANK CHECKING ACCOUNT WITH NOLOAD MUTUAL FUNDS HE SPOTS BY
READING NEWSPAPERS AND MAGAZINES

MR ROMATOWSKI IS TYPICAL OF MANY OF TODAY'S INVESTORS WHO INSTEAD OF
CENTRALIZING THEIR FINANCES ARE INCLINED TO UNBUNDLE THEM BY PICKING AND
CHOOSING AMONG A VARIETY OF SERVICE PROVIDERS

MANY FINANCIAL PLANNERS THINK AN ASSET MANAGEMENT ACCOUNT REMAINS A GOOD
IDEA FOR INVESTORS WITH SUBSTANTIAL ASSETS FOR WHOM THE FEES ARE A
REASONABLE PRICE TO PAY FOR THE CONVENIENCE OF A MENU OF FINANCIAL SERVICES

HOW COSTLY IS A CMA THE DROP IN SHORTTERM INTEREST RATES PAID BY MONEY
MARKET FUNDS HAS MADE THE ANNUAL FEES AND OTHER CHARGES BY MERRILL LOOM
LARGER BY COMPARISON A CUSTOMER WITH 30000 IN THE CMA TAXEXEMPT MONEY
FUND CURRENTLY YIELDING ABOUT 24 PAYS 054 OF HIS MONEY FUND BALANCE
ANNUALLY IN EXPENSES THE 100 ANNUAL FEE AMOUNTS TO ANOTHER 033 THE
TOTAL FEES AND EXPENSES OF 087 A YEAR EQUALS ONETHIRD OF THE INTEREST
INCOME SUCH FEES WEREN'T AS NOTICEABLE A FEW YEARS AGO WHEN SHORTTERM
RATES STILL TOPPED 9

MR STEFFANS SAYS THAT THOSE FEES STILL ARE RELATIVELY MINOR WHEN COMPARED
TO THE EXTRA RETURNS A CMA INVESTOR COULD HAVE RECEIVED BY HEEDING THE
ADVICE OF MERRILL BROKERS A FEW YEARS AGO TO SHIFT THEIR MONEYFUND ASSETS
INTO FIVEYEAR NOTES OR CDS THEN PAYING 8 INTEREST THE EXTRA FIVE
PERCENTAGE POINTS OF INTEREST ON A 20000 ACCOUNT HE NOTES WOULD GENERATE
1000 A YEAR 10 TIMES THE ANNUAL FEE

THE CMA ACCOUNTS BY THEMSELVES GENERATE ABOUT 150 MILLION IN ANNUAL FEE
REVENUE WHICH JUST ABOUT PAYS FOR THE COSTS MERRILL INCURS IN SERVICING
THEM INDUSTRY EXECUTIVES SAY MORE LUCRATIVE FOR MERRILL IS SOME 240
MILLION IN MANAGEMENT FEES THROWN OFF BY THE 433 BILLION IN CMA MONEYFUND
ASSETS MONEY FUNDS DON'T COST THAT MUCH TO ADMINISTER

MERRILL HAS RESPONDED TO THE COMPETITIVE CHALLENGES TO ITS CMA BY ROLLING
OUT NEW FEATURES AND ADDONS YESTERDAY FOR EXAMPLE MERRILL UNVEILED A
CMA MASTER FINANCIAL SERVICE ALLOWING CMA CUSTOMERS TO ESTABLISH SEPARATE
INVESTMENT ACCOUNTS FOR A FEE OF 25 EACH TO SEGREGATE ASSETS TO MEET
DIFFERENT GOALS THE CMA ALSO OFFERS SYSTEMS FOR TELEPHONE BILLPAYING AND
AUTOMATIC SAVINGS

IN ADDITION TO THE 13 MILLION CMA ACCOUNTS MERRILL HAS 280000 CUSTOMERS
IN A 65FEE CAPITAL BUILDER ACCOUNT WHICH HAS A LOWER MINIMUM BUT FEWER
CHOICES AND 100000 CUSTOMERS IN A BUSINESS VERSION SINCE 1987 THE NUMBER
OF CMA ACCOUNTS HAS GROWN BY 4 THANKS MAINLY TO THE LOWFEE VERSION

CENTRAL ASSET ACCOUNTS ARE GROWING SLOWLY SAYS JEFFREY B LANE VICE
CHAIRMAN OF SMITH BARNEY HARRIS UPHAM & CO A RIVAL SECURITIES FIRM THAT
OFFERS ITS OWN VERSION IT'S A REASONABLY SATURATED MARKET 9301070038
930107 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 4 HIGH 2 3/4 LOW 3 3/4 NEAR CLOSING BID 3 3/4 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 320 30
TO 89 DAYS 322 90 TO 119 DAYS 328 120 TO 149 DAYS 330 150 TO 179
DAYS 333 180 TO 270 DAYS

COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR
CORPORATIONS IN MULTIPLES OF 1000 334 30 DAYS 334 60 DAYS 335 90
DAYS

CERTIFICATES OF DEPOSIT 278 ONE MONTH 282 TWO MONTHS 286 THREE
MONTHS 297 SIX MONTHS 323 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR
NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS
OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE
SECONDARY MARKET 315 ONE MONTH 325 THREE MONTHS 340 SIX MONTHS

BANKERS ACCEPTANCES 312 30 DAYS 313 60 DAYS 316 90 DAYS 321 120
DAYS 326 150 DAYS 328 180 DAYS NEGOTIABLE BANKBACKED BUSINESS
CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER

LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO
MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2
 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS

LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE
MONTHS 3 9/16 SIX MONTHS 4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED
RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE
MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE
APPEARING AT TOP OF THIS COLUMN

FOREIGN PRIME RATES CANADA 725 GERMANY 11 JAPAN 450 SWITZERLAND
788 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE
LENDING PRACTICES VARY WIDELY BY LOCATION

TREASURY BILLS RESULTS OF THE MONDAY JANUARY 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 779 60 DAYS 789 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 778 60
DAYS 787 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 555 6/2 RATE
CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC

MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN
AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS
9301070037 930107 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON
TRENDS IN INDUSTRY AND FINANCE  BY PAMELA SEBASTIAN

FEAR AND PROMOTING BOOST SALES OF CELLULAR PHONES

STRONG DEMAND AGGRESSIVE MARKETING AND A GROWING CONCERN OVER CARJACKINGS
KEPT SALES RINGING OVER THE HOLIDAYS AND THE MARKET ISN'T SATURATED YET
WE'RE AMAZED AT THE SALES SAYS CHARLES MURPHY OF BELL ATLANTIC MOBILE IN
NEW JERSEY THE BELL ATLANTIC UNIT OFFERED FREE AIRWAVE TIME AND ADVERTISED
ON TELEVISION RESULT SALES ROSE 5075 FROM 1991 CALIFORNIA'S MARKET IS
SO HOT REGULATORS STUDY WAYS TO CUT COSTS FOR CONSUMERS USING JAMMED
AIRWAVES

ONCE THOUGHT OF AS A MALE EXECUTIVE TOY THE PHONES OFTEN GO TO WOMEN
SAYS BOSTON DISCOUNTER SHERMAN'S WHICH HAD THE BEST YEAR EVER IN CELLULAR
SALES IN 1992 CONNECTICUT'S CAR PHONE STORE CHAIN STRESSES SAFETY IN ITS
ADS AND LECHMERE A WOBURN MASS RETAILER BEGINS TO PROMOTE SAFETY
PRESET NUMBERS TO CALL POLICE ARE A BIG FEATURE BUT ROBERT MCCRIE EDITOR
OF SECURITY LETTER SAYS CARJACKINGS CAN OCCUR TOO QUICKLY FOR MOTORISTS TO
USE A PHONE

THE NUMBER OF CELLULAR PHONE CALLS RECEIVED BY NEW JERSEY STATE POLICE
JUMPED 40 IN 1992 TO ABOUT 65000

TOUCHY TOUCHUPS EMERGE AT THE TOP OF NEW PAINTING STANDARDS FOR
CONTRACTORS

THE PAINTING AND DECORATING CONTRACTORS OF AMERICA FAIRFAX VA BEGINS A
PROGRAM TO DOCUMENT STANDARDS IN A BID TO PREVENT COSTLY CONTRACT FIGHTS AND
LAWSUITS WE'VE ALREADY IDENTIFIED 35 AREAS WE'D LIKE TO DO SAYS A
SPOKESMAN FOR THE GROUP WHICH REPRESENTS 3300 INDEPENDENT CONTRACTORS HE
FIGURES THAT 95 OF COMMERCIALLYDONE JOBS NEED SOME TOUCHUP DUE TO SCRAPES
AND SUCH CAUSED BY TRADESPEOPLE MOVERS AND OTHERS AFTER THE PAINTER HAS
FINISHED

TRADITIONALLY PAINTERS SET ASIDE FUNDS TO ABSORB SUCH COSTS IT WOULD
CERTAINLY HELP CASH FLOW IF WE DIDN'T HAVE THAT PROBLEM SAYS PAUL COREY A
DEDHAM MASS PAINTER WHO IS ALSO THE GROUP'S PRESIDENT THE FIRST STANDARD
DEFINES CRITERIA FOR PROPERLY PAINTED SURFACES OUTLINES AN INSPECTION
METHOD AND DEFINES DAMAGE CAUSED BY OTHERS A SECOND STANDARD COVERS
THIRDPARTY INSPECTIONS NEXT A RULE FOR THE NUMBER AND LOCATION OF COLORS
IN A BID

HIGHER WATER RATES ARE IN STORE FOR THE REST OF THE '90S

INCREASES THAT OUTPACE INFLATION WILL BE THE NORM THIS DECADE AS UTILITIES
UPGRADE AGING WATER SYSTEMS AND AS MORE STRINGENT ENVIRONMENTAL REGULATIONS
SUCH AS THE AMENDMENTS TO THE FEDERAL SAFE DRINKING WATER ACT TAKE HOLD
THE PACE OF INCREASE IS EXPECTED TO EXCEED INFLATION BY 50 ACCORDING TO A
STUDY OF 150 UTILITIES BY CONSULTANTS ERNST & YOUNG IN CONTRAST WATER
RATES IN THE LATE 1980S ROSE IN LINE WITH INFLATION

RATES ALSO WILL GET A PUSH AS UTILITIES PRESS FOR CONSERVATION THEY'RE
LIKELY TO SWITCH TO CHARGING MORE FOR HIGHER USAGE ALREADY SOME CONSUMERS
FACE STEEP HIKES CALIFORNIAAMERICAN WATER CO'S RATES ROSE 14 LAST WEEK
MEANWHILE PHILADPHIA SUBURBAN WATER CO SEEKS AN 18 HIKE FOR 1993 CITING
COSTS OF IMPROVING ITS SYSTEM PENNSYLVANIA GAS & WATER CO'S REQUEST FOR A
34 INCREASE ALSO IS PENDING

STILL WATER COSTS AREN'T LIKELY TO EXCEED 1 OF MEDIAN NET HOUSEHOLD
INCOME SAYS ERNST & YOUNG

CLEANER FOODS CLEANER KITCHENS IS THE MOTTO FOR AN UPCOMING CAMPAIGN BY
CHEFS IN AMERICA A GROUP OF 10000 RESTAURANT AND HOTEL CHEFS THE SAN
FRANCISCOBASED GROUP DEVISES 12 GUIDELINES TO HELP OFFSET TECHNOLOGICAL
TAMPERING WITH FOODS AMONG OTHER THINGS THE CHEFS SUPPORT ORGANIC FOODS
ESCHEW ADDITIVES AND PESTICIDES AND ESPOUSE A VIGILANT FIGHT AGAINST
BACTERIA IN THE KITCHEN

TAKING ADVANTAGE OF PRICE DECLINES FORTUNE 1000 FIRMS BOUGHT PC HARDWARE
AND SOFTWARE AT A RECORD CLIP IN LATE '92 SAYS COMPUTER RESELLER NEWS IN
MANHASSET NY AND THE GALLUP ORGANIZATION THE TRADE PAPER FOUND THAT
FIRMS SPENT AN AVERAGE 301000 EACH IN OCTOBER 296000 IN NOVEMBER AND
AN ESTIMATED 335000 IN DECEMBER JANUARY SALES ARE LIKELY TO SLOW A BIT
BUT STILL REMAIN HIGH TOP SELLERS INCLUDE NETWORKING PRODUCTS AND
NOTEBOOKS

IN HARMONY A CANADIAN AND A US TESTING LAB TEAM UP TO OFFER MANUFACTURERS
ONESTOP PRODUCT SAFETY CERTIFICATION FOR BOTH COUNTRIES ETL TESTING
LABORATORIES INC IN CORTLAND NY AND WARNOCK HERSEY PROFESSIONAL
SERVICES LTD TORONTO OFFER TESTING ON A RANGE OF ELECTRICAL AND GAS
PRODUCTS AS WELL AS BUILDING MATERIALS

EUROPEAN AIRPORTS ASSERT THEIR RIGHTS IN BATTLE OVER SLOTS

THE MEMBERS OF THE AIRPORTS COUNCIL INTERNATIONAL EUROPE WELCOME THE EC'S
CODE OF CONDUCT ON THE ALLOCATION OF LANDING AND TAKEOFF SLOTS BUT THEY
COMPLAIN THAT AIRPORTS STILL PLAY NO ROLE IN MAKING UP THE RULES EVEN
THOUGH THE EC'S CODE GIVES THEM A SEAT AT THE TABLE FOR COORDINATING THE
SLOT ALLOCATION

ACI EUROPE DIRECTOR GENERAL PHILIPPE HAMON SAYS IT IS LIKE BEING ALLOWED TO
PLAY THE GAME BUT NOT TO MAKE THE RULESTHOSE ARE MADE BY THE AIRLINES MR
HAMON ARGUES COMMUNITIES HAVE A RIGHT TO CHOOSE WHAT AIRLINES AND ROUTES
WILL SERVE THEIR AIRPORT NOTING SUCH A STEP WOULD BOOST COMPETITION WE
FEEL THAT IF THE AIRPORT WERE PRESENT IT MIGHT HELP THE LITTLE GUYS HE
SAYS

THE AIRPORTS COUNCIL ALSO DISCUSSED THE EC COMMISSION'S TREATMENT OF
AIRPORTS AS ENVIRONMENTAL HAZARDS

BRIEFS VENTURE CAPITALIST LEWIS B CULLMAN CHAIRMAN OF THE AMERICAN CHESS
FOUNDATION GIVES 1 MILLION TO FUND INNERCITY SCHOOL CHESS PROGRAMS  
THE TROLL DOLLS FAD HITS SUPERMARKET SHELVES WITH THE INTRODUCTION OF TROLL
CONFECTIONS INCLUDING LICENSED COOKIES BAKED BY RW FROOKIES 9301070035
930107 RECENT SEC FILINGS

WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION

CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC AN INITIAL OFFERING OF 15
MILLION COMMON SHARES VIA PRINCIPAL/EPPLER GUERIN & TURNER INC

CATALYTICA INC MOUNTAIN VIEW CALIF AN INITIAL OFFERING OF THREE MILLION
COMMON SHARES VIA AN UNDERWRITING GROUP MANAGED BY LEHMAN BROTHERS INC AND
ALEX BROWN & SONS INC

DF&R RESTAURANTS INC REGISTRATION FOR AN OFFERING OF 19 MILLION COMMON
SHARES VIA DEAN WITTER REYNOLDS INC

ENERGY BIOSYSTEMS CORP AN INITIAL OFFERING OF 24 MILLION COMMON SHARES
VIA ALEX BROWN & SONS AND OPPENHEIMER & CO

FIRST USA INC REGISTRATION FOR AN OFFERING OF FOUR MILLION COMMON SHARES
VIA UNDERWRITERS LED BY MERRILL LYNCH & CO

GLOBAL INDUSTRIES LTD INITIAL PUBLIC OFFERING OF 25 MILLION COMMON
SHARES VIA SALOMON BROTHERS INC AND MORGAN KEEGAN & CO

MARSH SUPERMARKETS INC A PROPOSED OFFERING OF 20 MILLION PRINCIPAL AMOUNT
OF CONVERTIBLE SUBORDINATED DEBENTURES AND 750000 SHARES OF CLASS B COMMON
STOCK VIA KEMPER SECURITIES GROUP INC AND JJB HILLIARD WL LYONS
INC

NORAND CORP CEDAR RAPIDS IOWA AN AMENDED INITIAL OFFERING OF ABOUT 35
MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP
ROBINSONHUMPHREY CO AND WILLIAM BLAIR & CO

PHYSICIAN CORP OF AMERICA AN INITIAL OFFERING OF THREE MILLION COMMON
SHARES VIA BEAR STEARNS & CO AND PAINEWEBBER INC

SAFEGUARD SCIENTIFICS INC AN OFFERING OF THREE MILLION COMMON SHARES OF
CTP TWO MILLION OF WHICH WILL BE OFFERED BY SAFEGUARD AND THE BALANCE
REPRESENTING NEW FINANCING BY CTP

STEIN MART INC A PROPOSED OFFERING OF 25 MILLION COMMON SHARES VIA FIRST
BOSTON CORP ALEX BROWN & SONS AND JC BRADFORD & CO

USBANCORP AN OFFERING OF ONE MILLION COMMON SHARES WITH OVERALLOTMENT
OPTIONS FOR AN ADDITIONAL 150000 SHARES VIA OPPENHEIMER & CO AND LEGG
MASON WOOD WALKER INC 9301070034 930107 QUARTERLY MUTUAL FUNDS REVIEW 
STOCK FUNDS STAGE LATE COMEBACK  PROPELLED BY SURGE IN SMALL STOCKS
MUTUAL FUNDS SOARED 904 IN FOURTH QUARTER BRINGING 1992'S FULLYEAR
GAIN TO 888  BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL
STREET JOURNAL

TENACIOUS INVESTORS WHO STUCK WITH THEIR STOCK FUNDS THROUGH THE DREARY
FIRST NINE MONTHS OF 1992 WERE FINALLY REWARDED IN THE FOURTH QUARTER

STOCK MUTUAL FUNDS SURGED AN AVERAGE OF 904 IN THE PAST THREE MONTHS
HELPING TO TURN A ROTTEN FIRST THREE QUARTERS INTO A RESPECTABLE YEAR FUNDS
FINISHED 1992 WITH AVERAGE FULLYEAR GAINS OF 888

THAT'S AHEAD OF THE STANDARD & POOR'S 500STOCK INDEX WHICH CLIMBED 761
DURING THE YEAR BUT IT'S A FAR CRY FROM 1991'S STUNNING PERFORMANCE WHEN
STOCK FUNDS SHOT UP 3561

NONETHELESS MANY STOCK FUND HOLDERS ARE BREATHING A SIGH OF RELIEF
INVESTORS INUNDATED STOCK FUNDS WITH AN UNPRECEDENTED 686 BILLION OF NEW
MONEY DURING THE FIRST 11 MONTHS OF 1992 EASILY SURPASSING 1991'S RECORD
INFLOW OF 383 BILLION

UNTIL THREE MONTHS AGO IT LOOKED LIKE ALL THAT BUYING ENTHUSIASM WAS GOING
TO GO UNREWARDED FUNDS TREADED WATER THROUGH THE FIRST NINE MONTHS OF 1992
FUELING FEARS THAT STOCK FUND INVESTORS WERE ONCE AGAIN BUYING HEAVILY JUST
AHEAD OF A MARKET SLUMP

IT DIDN'T TURN OUT THAT WAY LAST YEAR WE ENDED UP MAKING A LITTLE BIT OF
MONEY DESPITE HOW IT LOOKED EARLIER IN THE YEAR NOTES JOHN REKENTHALER
EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IF THIS WAS AN
OFF YEAR WE'LL TAKE IT

WHEN STOCK FUNDS TOOK OFF IN THE FOURTH QUARTER SMALLCOMPANY STOCK FUNDS
TOOK THE LEAD SOARING 1596 THAT BROUGHT THEIR FULLYEAR GAIN TO 1254
ACCORDING TO LIPPER ANALYTICAL SERVICES A SUMMIT NJ FUND RESEARCH FIRM

IT WAS THE SECOND YEAR IN A ROW THAT SMALLSTOCK FUNDS OUTPERFORMED THEIR
BIGGER BRETHREN SUGGESTING THAT A PROLONGED SMALLSTOCK REBOUND MAY FINALLY
BE UNDER WAY AFTER A SEVENYEAR DRY SPELL SMALLSTOCK FUNDS HAVE OUTPACED
LARGECOMPANY STOCK FUNDS FOR THE PAST 27 MONTHS

INVESTMENT ADVISERS RECKON THE RALLY IS FAR FROM OVER BOTTOM LINE IS WE
STILL THINK SMALLCAP STOCKS LOOK ATTRACTIVE COMPARED WITH LARGECAP
STOCKS SAYS ROBERT BINGHAM OF BINGHAM OSBORN & SCARBOROUGH A SAN
FRANCISCO INVESTMENT ADVISER MY HUNCH IS THEY'LL STILL BE RELATIVELY GOOD
VALUES COMPARED WITH LARGECAPS FOR AT LEAST A COUPLE MORE YEARS MR
BINGHAM IS PUTTING HIS CLIENTS' MONEY INTO SMALLSTOCK FUNDS SUCH AS
PENNSYLVANIA MUTUAL FUND AND VANGUARD EXPLORER FUND

WITH SMALLCOMPANY STOCKS OUTPACING BLUE CHIPS IT WAS A TOUGH YEAR FOR THE
COUNTRY'S LARGEST MUTUAL FUNDS WHICH ARE COMPELLED BY THEIR SIZE TO INVEST
HEAVILY IN BIGGER COMPANIES

ONLY 11 OF THE 25 LARGEST FUNDS MANAGED TO OUTPERFORM THE AVERAGE STOCK
MUTUAL FUND IN 1992 WHO WERE THESE HEROES THEY WERE MOSTLY VALUE FUNDS
LIKE FIDELITY PURITAN FUND WASHINGTON MUTUAL INVESTORS FUND AND VANGUARD
WINDSOR FUND WHICH WEIGHT THEIR PORTFOLIOS WITH DOWNTRODDEN STOCKS THAT ARE
CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS

FOR MANY OF THESE VALUE FUNDS 1992 WAS THE FIRST MARKETBEATING YEAR SINCE
1988 THE INTERVENING YEARS 1989 1990 AND 1991 HAD BELONGED TO THE
GROWTHSTOCK FUNDS WHICH FAVOR COMPANIES WITH RAPIDLY RISING PROFITS

IN THE FIRST HALF OF 1992 GROWTHSTOCK FUNDS GOT THEIR COMEUPPANCE DESPITE
A BOUNCE BACK IN RECENT MONTHS MANY FINISHED THE YEAR WITH ONLY MODEST
GAINS AND SOME LIKE AIM WEINGARTEN FUND KEMPER GROWTH FUND AND TWENTIETH
CENTURY GROWTH INVESTORS HAD SMALL LOSSES

IN THE ACCOMPANYING TABLE THERE IS A CATEGORY LABELED GROWTH THIS
REFLECTS THE PERFORMANCE OF FUNDS WHOSE OBJECTIVE IS GROWTH OF CAPITAL
THESE FUNDS DON'T NECESSARILY USE THE GROWTHSTOCK INVESTMENT STYLE

IT'S BEEN A CHANGING OF THE GUARD SAYS KURT BROUWER PRESIDENT OF BROUWER
& JANACHOWSKI A SAN FRANCISCO INVESTMENT ADVISER THE TREND IS TO VALUE
AND TO SMALLCOMPANY STOCKS PROBABLY FOR THE NEXT TWO YEARS

MR BROUWER NOTES THAT THE PROFITABILITY OF SMALL COMPANIES IS ESPECIALLY
SENSITIVE TO THE ECONOMIC CYCLE DITTO FOR MANY OF THE COMPANIES FAVORED BY
VALUE INVESTORS THESE COMPANIES TEND TO BE IN CYCLICAL BUSINESSES SUCH AS
PAPER MAKING AND CAR MANUFACTURING WITH THE ECONOMY ON THE UPSWING BOTH
VALUE STOCKS AND SMALL STOCKS SHOULD DO WELL FIGURES MR BROUWER

THE SHIFT FROM GROWTH TO VALUE CREATED TURMOIL AMONG FUNDS SPECIALIZING IN
SINGLEINDUSTRY SECTORS HEALTH CARE FUNDS THE DARLINGS OF 1991 TURNED
INTO THE DOGS OF 1992 TUMBLING 828 MEANWHILE FUNDS SPECIALIZING IN
FINANCIAL STOCKS SOARED 3518 AS INVESTORS RUSHED TO BET ON AN ECONOMIC
RECOVERY THESE FIGURES FROM LIPPER ANALYTICAL ARE TOTAL RETURN NUMBERS
WHICH INCLUDE BOTH SHARE PRICE CHANGES AND REINVESTED DIVIDENDS

WHILE VALUE FUNDS AND SMALLCOMPANY FUNDS EMERGED FROM THE DOLDRUMS
FOREIGNSTOCK FUNDS CONTINUED THEIR SLUMP TRAILING US STOCK FUNDS FOR THE
FOURTH CONSECUTIVE YEAR

MY OWN OPINION IS IT WILL CONTINUE TO GO THE US WAY FOR AT LEAST ANOTHER
QUARTER SAYS RICHARD FOULKES MANAGER OF VANGUARD WORLD FUNDINTERNATIONAL
GROWTH PORTFOLIO AND THEN THE TIDE WILL TURN BECAUSE THE JAPANESE ECONOMY
WILL PICK UP STEAM EUROPEAN INTEREST RATES WILL COME DOWN AND THE US
DOLLAR WILL PEAK IN THE FOREIGNEXCHANGE MARKET

TAXABLE US BOND FUND INVESTORS FARED ALMOST AS WELL AS STOCK FUND
INVESTORS IN 1992 EARNING 787 IN THE YEAR AND 018 IN THE FOURTH
QUARTER BOND FUNDS WHICH WERE FLOODED WITH MONEY FROM YIELDHUNGRY
INVESTORS EASILY OUTPACED MONEY MARKET FUNDS WHICH HAD FULLYEAR GAINS OF
331

BUT THERE WAS ONE UNSETTLING EXCEPTION FOREIGNBOND FUNDS LAST YEAR'S
CURRENCY TURMOIL WREAKED HAVOC WITH THESE FUNDS ESPECIALLY THE SHORTTERM
GLOBAL INCOME FUNDS THE SHORTTERM WORLD INCOME FUNDS WERE PAINFUL SAYS
MORNINGSTAR'S MR REKENTHALER OTHERWISE FIXED INCOME WAS VERY PLEASANT TO
FOLKS

FOR THE PAST FEW YEARS THE PUNDITS HAVE WARNED INVESTORS THAT THE STOCK
MARKET GAINS OF THE 1980S WERE UNSUSTAINABLE AND THAT FUTURE PERFORMANCE
WOULD BE CLOSER TO HISTORICAL NORMS LAST YEAR THE PUNDITS FINALLY WERE
RIGHT

SINCE 1926 STOCKS HAVE RETURNED ABOUT SEVEN PERCENTAGE POINTS A YEAR MORE
THAN INFLATION ACCORDING TO CHICAGO'S IBBOTSON ASSOCIATES LAST YEAR STOCK
FUND INVESTORS DID ALMOST THAT WELL OUTPACING THE CONSUMER PRICE INDEX BY
CLOSE TO SIX PERCENTAGE POINTS

WHAT CAN FUND INVESTORS EXPECT IN 1993 A MICHAEL LIPPER PRESIDENT OF
LIPPER ANALYTICAL RECKONS IT'S A TIME FOR CAUTION

IF WE GO ALL THE WAY THROUGH 1993 WITHOUT A DROP OF 10 THEN IT WILL BE
THE LENGTHIEST RISE IN THE LAST 10 BULL MARKETS HE SAYS THERE IS SOME
EVIDENCE THAT THIS MARKET IS LOOKING A LITTLE LONG IN THE TOOTH
9301070033 930107 POLITICS & POLICY DESPITE CLINTON'S PROMISES OF
CHANGE LOBBYISTS ARE PLAYING A BIG ROLE IN TRANSITION EFFORTS  BY
TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON BILL CLINTON INSISTS HIS ADMINISTRATION WON'T BE BUSINESS AS
USUAL FOR LOBBYISTS BUT THE CONFIRMATION PROCESS FOR SOME OF HIS APPOINTEES
IS ALREADY ASSUMING A FAMILIAR FEEL

OFFICIALLY THE CLINTON TRANSITION INSISTS IT HAS BROKEN WITH THE COMMON
PRACTICE OF THE REAGAN AND BUSH YEARS BY NOT RELYING ON LOBBYISTS TO HELP
CABINET NOMINEES WIN SENATE APPROVAL

THERE IS NO SUBSTANTIAL LIST OF CORPORATE LOBBYISTS SUPPORTING THE
CONFIRMATION EFFORT SAYS HOWARD PASTER WHO HEADS THE CONFIRMATION TEAM
AND IS ON LEAVE FROM HIS JOB AS CHAIRMAN OF THE WASHINGTON OFFICE OF THE
LOBBYING FIRM OF HILL & KNOWLTON

IN FACT HOWEVER CORPORATE LOBBYISTS WITH CLOSE TIES TO THE DEMOCRATS ARE
ASSISTING WITH A HOST OF NOMINATIONS MICHAEL BERMAN PRESIDENT OF THE
DUBERSTEIN GROUP IS ADVISING ENVIRONMENTAL PROTECTION AGENCY NOINEE CAROL
BROWNER RALPH EVERETT A LOBBYIST FOR THE LAW FIRM PAUL HASTINGS JANOFSKY
& WALKER PARTICIPATED IN PREP SESSIONS FOR COMMERCE DEPARTMENT NOMINEE RON
BROWN STEVE ENGELBERG A LOBBYIST AT KECK MAHIN & CATE IS HELPING TO
PREPARE MICKEY KANTOR THE NOMINEE FOR US TRADE REPRESENTATIVE AND BILL
CABLE A VICE PRESIDENT AT TIMMONS & CO IS HEADING UP THE CLINTON TEAM
HELPING INTERIOR DEPARTMENT NOMINEE BRUCE BABBITT GET READY FOR HIS
HEARINGS

THE ONLY REAL DIFFERENCE BETWEEN THESE LOBBYISTS AND THEIR REPUBLICAN
PREDECESSORS DURING THE REAGAN AND BUSH ADMINISTRATIONS IS THAT THE
DEMOCRATS ARE MAKING A GREATER EFFORT TO BE DISCREET ABOUT THEIR ROLE IN
LIGHT OF MR CLINTON'S CRITICISMS OF LOBBYISTS DURING THE CAMPAIGN

I'M NOT FULL TIME SAYS MR BERMAN WHEN ASKED ABOUT HIS ROLE IN HELPING
MS BROWNER PREPARE FOR HER CONFIRMATION HEARING NEXT WEEK MR BERMAN
WHOSE FIRM REPRESENTS SHELL OIL CO ANHEUSERBUSCH COS AND MONSANTO CO
ALL COMPANIES WITH A SUBSTANTIAL INTEREST IN THE EPA'S REGULATORY
ACTIVITIES ALSO SAYS HE HAS OFFERED ASSISTANCE ON A MORE INFORMAL BASIS TO
OTHER NOMINEES BUT WON'T SPECIFY WHICH ONES

MR BERMAN'S PARTNER KENNETH DUBERSTEIN A FORMER WHITE HOUSE CHIEF OF
STAFF UNDER RONALD REAGAN DREW CRITICISM TWO YEARS AGO WHEN HE ASSISTED
CLARENCE THOMAS WITH HIS SENATE CONFIRMATION AS SUPREME COURT JUSTICE AT THE
SAME TIME THAT HIS FIRM WAS REPRESENTING CLIENTS SUCH AS GENERAL MOTORS
CORP WHICH HAD BUSINESS PENDING BEFORE THE COURT NOW IT'S DEMOCRATS WHO
ARE ATTRACTING THE IRE OF PUBLICINTEREST GROUPS THAT MONITOR THE REVOLVING
DOOR BETWEEN GOVERNMENT AND BUSINESS

THEY'RE NOT DOING THIS WORK BECAUSE THEIR CHEST SWELLS WITH PRIDE WHEN THEY
HEAR THE STAR SPANGLED BANNER' SAYS CHARLES LEWIS EXECUTIVE DIRECTOR OF
THE NONPROFIT CENTER FOR PUBLIC INTEGRITY MOST OF THESE PEOPLE HAVE THEIR
OWN AGENDA AND IT'S A BIGMONEY AGENDA

ACCESS TO THE CLINTON ADMINISTRATION IS A VALUABLE COMMODITY FOR LOBBYISTS
ARGUES MR LEWIS AND IT IS HYPOCRITICAL FOR MR CLINTON TO ALLOW
CORPORATE LOBBYISTS TO PARTICIPATE WHEN HE SPENT MUCH OF HIS CAMPAIGN
PRESENTING HIMSELF AS A CHANGE AGENT

IN HIS RUN FOR PRESIDENT MR CLINTON DENOUNCED HIGHPRICED LOBBYISTS AND
WASHINGTON INFLUENCE PEDDLERS AND COMPLAINED ABOUT A GOVERNMENT THAT ONLY
WORKS FOR THE VERY WEALTHY AND THE SPECIAL INTERESTS AS A RESULT
TRANSITION OFFICIALS ARE UNDERSTANDABLY EDGY WHEN ASKED ABOUT THE
PARTICIPATION OF LOBBYISTS IN THE CONFIRMATION PROCESS ALTHOUGH MR PASTER
CONCEDED THAT SOME LOBBYISTS ARE PROVIDING ADVICE HE PLAYED DOWN THEIR
SIGNIFICANCE AND DECLINED TO VOLUNTEER ANY NAMES THEY ARE NOT GOING TO THE
HILL WITH PEOPLE HE SAID

MR EVERETT OF PAUL HASTINGS DID ATTEND YESTERDAY'S SENATE COMMERCE
COMMITTEE CONFIRMATION HEARING FOR MR BROWN MR EVERETT IS A FORMER STAFF
DIRECTOR OF THE COMMITTEE AND HAS ALSO BEEN A LEGISLATIVE ASSISTANT TO THE
COMMITTEE'S CHAIRMAN SEN ERNEST HOLLINGS D SC AMONG THE CLIENTS MR
EVERETT HAS REPRESENTED ARE THE AMERICAN TRUCKING ASSOCIATION BELL ATLANTIC
CORP AND UNION PACIFIC CORP MR EVERETT DID NOT RETURN PHONE CALLS
SEEKING COMMENT

ONE WAY THE CLINTON TRANSITION IS ATTEMPTING TO DRAW A DISTINCTION WITH ITS
PREDECESSORS IS BY REQUIRING VIRTUALLY ANYONE WHO HAS CONTACT WITH A NOMINEE
TO FILL OUT AN ETHICS FORM PLEDGING NOT TO DO BUSINESS WITH THE
EXECUTIVEBRANCH AGENCY INVOLVED FOR SIX MONTHS ANYBODY WHO COUNSELS ANY
NOMINEE AS A PERSONA FRIEND AS AN OUTSIDE LAWYER AS A FORMER ASSOCIATE AS
A NEIGHBOR IN WASHINGTON SAYS MR PASTER IS BEING ASKED TO FILL OUT THE
FORM

BUT ENFORCEMENT OF THIS RULE IS HAPHAZARD FOR EXAMPLE MIKE MCCURRY A
SENIOR VICE PRESIDENT AT ROBINSON LAKE LERER & MONTGOMERY SAYS THAT
ALTHOUGH HE IS HELPING MR BABBITT INFORMALLY ON COMMUNICATIONS ISSUES HE
HAS NOT FILLED OUT THE FORM MR MCCURRY IS NOT A LOBBYIST BUT PROVIDES
PUBLICRELATIONS ADVICE TO CORPORATE CLIENTS HE WAS MR BABBITT'S PRESS
SECRETARY DURING HIS 1988 BID FOR THE DEMOCRATIC PRESIDENTIAL NOMINATION

PART OF THE PROBLEM IS THAT THE CLINTON TRANSITION TEAM DOESN'T ALWAYS KNOW
WHO IS ADVISING ITS NOMINEES ALTHOUGH EACH NOMINEE IS FORMALLY ASSIGNED
SEVERAL ADVISERS TO ASSIST IN THE CONFIRMATION INEVITABLY SOME NOMINEES ARE
SEEKING OUT FURTHER ASSISTANCE FROM FORMER AIDES AND LONGTIME FRIENDS
WITHOUT NOTIFYING THE TRANSITION TEAM

MR EVERETT FOR EXAMPLE WAS ASSIGNED TO MR BROWN'S NOMINATION NOT BY THE
CLINTON TRANSITION BUT BY MR BROWN HIMSELF SIMILARLY MR KANTOR SELECTED
MR ENGELBERG WHOSE FIRM REPRESENTS GENERAL INSTRUMENT CORP WHICH HAS
ROUGHLY A THIRD OF ITS SALES OVERSEAS AND THEREFORE HAS A LARGE INTEREST IN
TRADE NEGOTIATIONS

BUT EVEN SOME LOBBYISTS ASSIGNED BY THE CLINTON TRANSITION TEAM TO ASSIST
WITH NOMINATIONS CONFESS BEWILDERMENT AT THE ETHICAL THICKET PLACED BEFORE
THEM IT'S SITTING RIGHT IN FRONT OF ME I'M STILL READING IT SAID MR
CABLE OF THE ETHICS FORM AFTER RETURNING FROM HIS FIRST PREP SESSION WITH
MR BABBITT HE SAID THAT HE HADN'T YET FILLED IT OUT BUT INTENDED TO

MR CABLE'S COMPANY TIMMONS & CO REPRESENTS AMOCO CORP SOUTHERN
CALIFORNIA EDISON AND THE AMERICAN PETROLEUM INSTITUTE BUT HE DENIES
THERE'S ANY CONFLICT BETWEEN HIS CHORES FOR THOSE CLIENTS AND HIS DUTIES IN
ASSISTING MR BABBITT I ALMOST NEVER DO THE SENATE SAYS MR CABLE WHO
FORMERLY SERVED AS COUNSEL TO THE HOUSE COMMITTEE ON EDUCATION AND LABOR AND
AS STAFF DIRECTOR OF THE HOUSE ADMINISTRATION COMMITTEE CONFIRMATIONS ARE
ABOUT THE SENATE HE SAYS NOT ABOUT THE INTERIOR DEPARTMENT

AT LEAST ONE WASHINGTON LOBBYIST HAS MISGIVINGS ABOUT ASSISTING CABINET
NOMINEES WHEN KIRK O'DONNELL A FORMER AIDE TO HOUSE SPEAKER TIP O'NEILL
AND CURRENT LOBBYIST FOR THE LAW FIRM AKIN GUMP HAUER & FELD WAS ASKED BY
THE CLINTON TRANSITION TO HELP HEALTH AND HUMAN SERVICES NOMINEE DONNA
SHALALA HE DECLINED PARTLY BECAUSE HE DID NOT KNOW MS SHALALA AND PARTLY
OUT OF CONCERN THAT IT MIGHT CREATE THE APPEARANCE OF A CONFLICT OF
INTEREST

EVEN MR O'DONNELL HOWEVER HASN'T RENOUNCED THE NOMINATION PROCESS
ENTIRELY ACCORDING TO AN INDIVIDUAL IN THE CLINTON TRANSITION HE DID
ATTEND ONE STRATEGY MEETING FOR MR BROWN THOUGH MR BROWN HIMSELF DID NOT
ATTEND

THIS MERCENARY CULTURE WILL LIVE ON SAYS MR LEWIS WHO IS PRESIDENT IS
RELATIVELY INCIDENTAL

BOB DAVIS CONTRIBUTED TO THIS ARTICLE 9301070032 930107 WHO'S NEWS 
CROWN CENTRAL PETROLEUM CORP

CROWN CENTRAL PETROLEUM CORP BALTIMORE FRANK B ROSENBERG 34 YEARS
OLD WAS NAMED VICE PRESIDENT OF MARKETING OF THIS PETROLEUM REFINER
MARKETER OF PETROLEUM PRODUCTS AND OWNER OF GAS AND CONVENIENCE STORES MR
ROSENBERG WHOSE POSITION IS NEWLY CREATED HAD BEEN RETAIL DIVISION MANAGER
OF CROWN'S SOUTHERN DIVISION IN ATLANTA 9301070031 930107 ZALE FAMILY
EXPECTED TO AMEND ITS PLAN FOR REVAMPING FIRM

DALLAS MEMBERS OF ZALE CORP'S FOUNDING FAMILY SEEKING TO REGAIN CONTROL
OF THE COMPANY ARE EXPECTED TO AMEND THEIR PROPOSED REORGANIZATION PLAN
MONDAY TO INCLUDE PLEDGES FOR AS MUCH AS 65 MILLION IN ADDITIONAL
FINANCING

TOM STEVENSON OF THE DALLASBASED MERCHANT BANKING FIRM LIPSHY STEVENSON
WHICH REPRESENTS THE FOUNDING ZALE AND LIPSHY FAMILIES SAID THE GROUP HAS
OBTAINED COMMITMENTS FROM GOLDMAN SACHS & CO FOR AS MUCH AS 50 MILLION
AND FROM TEXAS FINANCIER RICHARD RAINWATER FOR AS MUCH AS 15 MILLION THE
COMMITMENTS ARE CONTINGENT ON FAMILY MEMBERS DONALD ZALE AND BRUCE LIPSHY
REPLACING CURRENT MANAGEMENT MR STEVENSON SAID

THE JEWELRY RETAILER HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION
SINCE JANUARY 1992

A ZALE CORP SPOKESWOMAN SAID THAT THE COMPANY BELIEVES THE COMMITMENTS FROM
GOLDMAN AND MR RAINWATER ARE PRETTY SOFT AND NOTED THAT THE COMPANY'S
OWN REORGANIZATION PLAN WHICH CREDITORS ARE NOW VOTING ON ALREADY HAS THE
SUPPORT OF ALL BUT ONE CREDITORS' COMMITTEE

A REPRESENTATIVE OF ANOTHER CREDITOR SAID THAT HIS GROUP IS DISSATISFIED
WITH THE LIPSHY STEVENSON PLAN DAVID GLATSTEIN PRESIDENT OF BARRE & CO A
DALLAS SECURITIES FIRM THAT HOLDS ZALE BONDS SAID THAT HE DOUBTS THE
FAMILY'S NEW PROPOSAL IS MATERIALLY DIFFERENT FROM THE PLAN IT ALREADY
FILED MR GLATSTEIN SAID THAT HE BELIEVES THE NEWLY PROPOSED FINANCING
MERELY REPLACES A PREVIOUS COMMITMENT WITHDRAWN BY ANOTHER INVESTOR HR
BUM BRIGHT OF DALLAS

MR STEVENSON SAID THAT MR BRIGHT HASN'T WITHDRAWN HIS COMMITMENT AND THAT
THE NEW COMMITMENTS WOULD BRING THE TOTAL EQUITY CAPITAL FINANCING HIS GROUP
IS OFFERING TO AS MUCH AS 90 MILLION HE SAID THAT CITIBANK NA A UNIT OF
CITICORP HAS SEPARATELY OFFERED TO PROVIDE 150 MILLION OF DEBT FINANCING
9301070030 930107 QUARTERLY MUTUAL FUNDS REVIEW IDEAL SCENARIO COULD
EMERGE FOR BONDS  BY MICHAEL A POLLOCK SPECIAL TO THE WALL STREET
JOURNAL

NEW YORK COULD ANYONE BLAME BOND MUTUAL FUND INVESTORS FOR BEING BAFFLED
ABOUT THE OUTLOOK FOR THIS YEAR

AS THE ECONOMIC RECOVERY IS EXPECTED TO CONTINUE THIS YEAR ECONOMISTS AND
ANALYSTS STILL ARE BULLISH ON LONGTERM BONDS THOSE FIXEDINCOME SECURITIES
THAT ARE THE FIRST TO FAINT AT SIGNS OF ECONOMIC REVIVAL BUT THEY ALSO TOUT
JUNK BONDS WHICH OFTEN RALLY ALONG WITH STOCKS WHEN ECONOMIC GROWTH SEEMS
TO BE PICKING UP

FOR BOTH TYPES OF BONDS TO DO WELL IN 1993 WOULD REQUIRE AN ALMOST IDEAL
LOWINFLATION MODERATEGROWTH SCENARIO THAT'S SOMETHING MANY BOND
INVESTORS HAVEN'T SEEN BUT IT COULD HAPPEN FUND MANAGERS AND ECONOMISTS
SAY

WE'VE MOVED INTO RECOVERY BUT ECONOMIC GROWTH WILL BE SLUGGISH AT 25 TO
35 SAYS GARY COBURN WHO OVERSEES NEARLY 45 BILLION AS HEAD OF
FIXEDINCOME AT PUTNAM COS

AND IMPORTANTLY INFLATION WILL BE WELLBEHAVED TOO SAYS MR COBURN IN
A VIEW ECHOED BY OTHERS WE MAY NEAR THE BOTTOM OF THE INTERESTRATE CYCLE
BUT WE DON'T SEE PRESSURES THAT WOULD CAUSE INTEREST RATES TO SPIKE UPWARD

SOME EXPERTS WERE DEAD WRONG IN THEIR 1992 FORECASTS THOUGH A YEAR AGO
MANY PREDICTED THAT THE US ECONOMY WOULD BLAST OFF LEAVING BONDS BEHIND
IN THE DUST IN FACT THIS IS THE SLOWEST ECONOMIC REBOUND ON RECORD SAY
ECONOMISTS AT MERRILL LYNCH & CO'S RESEARCH UNIT THAT HELPED TAXABLE BOND
MUTUAL FUNDS WHICH GAINED AN AVERAGE 787 IN 1992 AND 018 IN THE PAST
THREE MONTHS

I DON'T SEE WHERE THE CONSENSUS MAY BE WRONG THIS TIME SAYS A MICHAEL
LIPPER PRESIDENT OF LIPPER ANALYTICAL SERVICES BUT I'M UNCOMFORTABLE THAT
EVERYONE SEEMS TO HAVE THE SAME POINT OF VIEW HERE HISTORICALLY THAT HAS
LED TO DISAPPOINTMENT

AS USUAL A BOND FUND STRATEGY SHOULD BE BASED ON HOW MUCH RISK AN INVESTOR
CAN STOMACH

FOR ANYONE WHO IS IN THE MARKET OVER THE LONGTERM AND CAN TAKE MARKET
VOLATILITY ONE WAY TO PLAY THIS IS TO GO LONG SAYS THOMAS M POOR A BOND
FUND PORTFOLIO MANAGER AT SCUDDER STEVENS & CLARK

THIRTYYEAR BOND YIELDS MAY EASE FROM THEIR CURRENT LEVEL OF A LITTLE ABOVE
73 MR POOR SAYS SPURRING CAPITAL GAINS IF POLITICIANS IN WASHINGTON
MAKE GOOD ON THEIR PLEDGE TO CUT THE FEDERAL BUDGET DEFICIT THAT WOULD BE
MORE GOOD NEWS FOR THE LONG END OF THE BOND MARKET HE ADDS

BUT IT'S TOUGH TO FIND A PURE MUTUAL FUNDS PLAY ON LONGMATURITY US
GOVERNMENT SECURITIES NOTES LORI LUCAS CONTRIBUTING EDITOR AT MORNINGSTAR
MUTUAL FUNDS A CHICAGO NEWSLETTER MANY FUNDS WITH TOP RANKING FROM
MORNINGSTAR SUCH AS DREYFUS SHORTINTERMEDIATE GOVERNMENT AND PIPER
JAFFRAY INSTITUTIONAL GOVERNMENT INCOME PORTFOLIO HOLD SHORTERTERM BONDS
AND ARE FAIRLY DIVERSIFIED

HOWEVER MS LUCAS ADDS AN ALTERNATIVE MAY BE CORPORATE BOND FUNDS SUCH AS
STRONG ADVANTAGE WHICH ALSO STAND TO BENEFIT FROM ANY BROAD BOND MARKET
RALLY

IF THE EXPERTS ARE WRONG AND THE ECONOMY SHIFTS INTO HIGHER GEAR PRICES IN
EVERY BOND MARKET FROM CORPORATES TO MUNICIPALS WILL GO DOWN NOTES
PUTNAM'S MR COBURN FOR REAL DIVERSIFICATION HE ARGUES YOU NEED TO ADD
ASSET OR BOND CLASSES THAT REACT TO THINGS OTHER THAN JUST INTERESTRATE
VARIATIONS IN THE US

MR COBURN SAYS HE RECENTLY PERSUADED HIS 78YEAROLD MOTHER TO INVEST IN
PUTNAM'S DIVERSIFIED INCOME FUND WHICH HAS DEPLOYED ITS 405 MILLION IN
ASSETS NEARLY EVENLY AMONG US GOVERNMENT SECURITIES JUNK AND FOREIGN
BONDS

CURRENTLY THE FUND IS STANDING PAT ON HIGHYIELD ISSUES BY CYCLICAL
COMPANIES CASINOS AND FINANCIAL CONCERNS MR COBURN SAYS BUT IT HAS MOVED
SOME OVERSEAS ASSETS FROM BRITAIN TO GERMANY FRANCE SPAIN AND FINLAND

PUTNAM FUND MANAGERS EXPECT THE DOLLAR TO WEAKEN IN THE SHORT TERM BUT
EVENTUALLY TO REBOUND THUS BY LATE IN THE YEAR THEY PLAN TO HEDGE AGAINST
A DOLLAR RISE BUT EVEN PROS FIND IT TOUGH TO ADEPTLY HEDGE CURRENCIES LAST
YEAR CURRENCY SWINGS HELPED SLASH RETURNS OF WORLD INCOME FUNDS TO ABOUT
1 ACCORDING TO LIPPER ANALYTICAL WHICH TRACKS FUND PERFORMANCE AND WE
PROBABLY HAVEN'T SEEN THE END OF CURRENCY INSTABILITY NOTES MR LIPPER

A WAY TO AVOID CURRENCY EXPOSURE AND STILL CAPTURE HIGHER YIELDS IS TO
INVEST IN JUNK FUNDS JUNK BOND FUNDS RANKED NEAR THE TOP OF ALL BOND FUNDS
IN PERFORMANCE LAST YEAR WITH AN AVERAGE TOTAL RETURN OF NEARLY 17
ACCORDING TO LIPPER TOTAL RETURN FOR A BOND FUND REFLECTS TWO CRUCIAL
FACTORS FOR INVESTORS THE INTEREST INCOME THE FUND HOLDERS GET AND ANY
CHANGE IN PRICE OF THE FUND SHARES THEY HOLD

MANY COMPANIES WITH LOWER CREDIT RATINGS HAVE TRIMMED DEBT BURDENS AND
OTHERWISE CUT COSTS THEIR BONDS WILL LOOK ATTRACTIVE THIS YEAR EVEN IF THE
ECONOMY LANGUISHES SAYS MARGARET EAGLE PORTFOLIO MANAGER OF THE 160
MILLION FIDELITY ADVISOR HIGHYIELD FUND THROUGH NOVEMBER ACCORDING TO
LIPPER THE FUND RANKED SEVENTH AMONG JUNK FUNDS WITH A 2129 RETURN

MS EAGLE SHUNS NEW JUNK BOND ISSUES MANY OF WHICH SHE BELIEVES ARE
UNATTRACTIVELY PRICED INSTEAD SHE COMBS THE LISTINGS FOR TURNAROUND
CANDIDATES RECENTLY SHE BOUGHT BONDS OF FLORIDA STEEL CORP WHICH JUMPED
IN PRICE AFTER A FOREIGN CONCERN OFFERED TO ACQUIRE THE COMPANY

MEANWHILE UPPERTAXBRACKET INVESTORS SHOULDN'T IGNORE MUNICIPAL BOND
FUNDS SOME OF WHICH RETURNED 10 OR MORE LAST YEAR ON AN AFTERTAX BASIS
ANALYSTS SAY

WILLIAM T REYNOLDS DIRECTOR OF THE MUNICIPAL BOND DIVISION AT T ROWE
PRICE ASSOCIATES SAYS HIGHER STATE AND LOCAL TAXES MADE MUNIS A BUY EVEN
BEFORE PRESIDENTELECT CLINTON SAID FEDERAL TAXES OUGHT TO BE RAISED FOR
UPPERINCOME AMERICANS IF THE NEW ADMINISTRATION FOLLOWS THROUGH ON THAT
IDEA MUNIS WILL GLEAM EVEN BRIGHTER MR REYNOLDS ADDS 9301070029 930107
QUARTERLY MUTUAL FUNDS REVIEW BANKMANAGED FUNDS GAIN IN SALES CONTEST
 WITH BROKERAGE FIRMS

NEW YORK MOVE OVER BROKERAGE FIRMS HERE COME THE BANKS

LAST YEAR BANKMANAGED MUTUAL FUNDS WERE THE BIG GAINERS IN THE MUTUAL FUND
SALES DERBY MEANTIME IT WAS A RELATIVELY POOR SALES YEAR FOR FUNDS MANAGED
BY BROKERAGE FIRMS AND INDEPENDENT BROKERSOLD FUND GROUPS

BROKERSOLD MUTUAL FUNDS HOLD 52 OF FUNDINDUSTRY ASSETS BUT THEY
ACCOUNTED FOR JUST 38 OF MUTUAL FUND SALES IN THE FIRST NINE MONTHS OF
1992 ACCORDING TO STRATEGIC INSIGHT A NEW YORK CONSULTING FIRM

BROKERSOLD FUNDS WERE HURT BY INVESTORS' DISENCHANTMENT WITH LOW INTEREST
RATES AT MONEYMARKET FUNDS WHICH ACCOUNT FOR A BIG PART OF BROKERSOLD
FUND ASSETS SAYS AVI NACHMANY A STRATEGIC INSIGHT ANALYST

FUNDS MANAGED BY BANKS WHICH HOLD ONLY 10 OF FUND INDUSTRY ASSETS
ACCOUNTED FOR 18 OF SALES IN LAST YEAR'S FIRST NINE MONTHS BANKS TYPICALLY
SELL FUNDS THAT CHARGE A SALES COMMISSION

IN ADDITION TO SELLING THEIR OWN FUNDS BANKS WERE ALSO BIG SELLERS OF
MUTUAL FUNDS MANAGED BY OTHERS IN ALL SALES THROUGH BANKS PROBABLY
ACCOUNTED FOR MORE THAN A THIRD OF ALL MUTUAL FUND SALES IN 1992 SAYS MR
NACHMANY

NOT ALL BROKERSOLD FUNDS FARED POORLY LAST YEAR'S TOP SELLER WAS
INVESTMENT CO OF AMERICA WHICH IS SOLD THROUGH BROKERS AND IS MANAGED BY
CAPITAL RESEARCH & MANAGEMENT LOS ANGELES THE FUND PULLED IN AN ESTIMATED
37 BILLION FROM INVESTORS IN 1992 MORE THAN ANY OTHER STOCK OR BOND
MUTUAL FUND

OTHER TOP SELLERS INCLUDE JANUS FUND INCOME FUND OF AMERICA AIM WEINGARTEN
FUND AND TWENTIETH CENTURY ULTRA INVESTORS THE 10 TOPSELLING FUNDS INCLUDE
TWO FROM CAPITAL RESEARCH & MANAGEMENT TWO FROM BOSTON'S FIDELITY
INVESTMENTS AND TWO FROM DENVER'S JANUS GROUP OF MUTUAL FUNDS 9301070028
930107 QUARTERY MUTUAL FUNDS REVIEW SEVENDAY YIELD RISES TO 296 
 BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL

SEASONAL FACTORS CONTINUED TO PUSH UP YIELDS ON MONEY MARKET MUTUAL FUNDS
AS ASSETS FELL

THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE TO 296 FROM
290 IN THE WEEK ENDED TUESDAY ACCORDING TO IBC/DONOGHUE'S MONEY FUND
REPORT COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS

ON TAXEXEMPT FUNDS THE AVERAGE SEVENDAY COMPOUND YIELD ROSE TO 283 FROM
274 THE ASHLAND MASS NEWSLETTER REPORTED THE LATEST YIELD IS
EQUIVALENT TO A TAXABLE 393 FOR INVESTORS IN THE 28 TAX BRACKET AND TO
410 FOR THOSE PAYING 31 IN TAXES

ASSETS OF 563 TAXABLE FUNDS DROPPED 64 BILLION TO 4595 BILLION
ACCORDING TO IBC/DONOGHUE'S ASSETS OF 306 TAXFREE FUNDS FELL 19 BILLION
TO 974 BILLION

TAXABLE MONEY FUND ASSETS TYPICALLY FALL AND YIELDS RISE AT YEAR END AS
INSTITUTIONAL INVESTORS MOVE TO HAVE MORE CASH ON THEIR BALANCE SHEETS THE
REDUCED DEMAND FOR SHORTTERM SECURITIES PUSHES PRICES DOWN AND YIELDS UP

OF THE LATEST WEEK'S OUTFLOW FROM TAXABLE FUNDS 53 BILLION WAS FROM FUNDS
OPEN ONLY TO INSTITUTIONS

WALTER FRANK CHIEF ECONOMIST FOR IBC/DONOGHUE'S PREDICTED THAT YIELDS WILL
FALL OFF A BIT IN THE NEXT FEW WEEKS AS CASH RETURNS TO MONEY FUNDS
ADDITIONAL CASH IS EXPECTED TO FLOW INTO TAXFREE FUNDS AS A RESULT OF THE
HUGE VOLUME OF CALLS OR EARLY REDEMPTIONS OF MUNICIPAL BONDS THIS MONTH
THE RESULTING DEMAND FOR TAXEXEMPT SECURITIES IS LIKELY TO PUSH THEIR YIELDS
DOWN TOO

AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL
PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY A DAY TO
56 DAYS WHICH MR FRANK ATTRIBUTED IN PART TO PORTFOLIO MANAGERS' RESPONSE
TO SEASONAL OUTFLOWS AVERAGE MATURITY OF THE TAXFREE FUNDS WHICH INVEST
PRIMARILY IN SHORTTERM MUNICIPAL SECURITIES SHORTENED BY A DAY TO 58 DAYS
9301070027 930107 QUARTERLY MUTUAL FUNDS REVIEW ZSEVEN SHARES SOAR 
AFTER INVESTOR BUYS LARGE STAKE IN FUND

NEW YORK SHARES OF ZSEVEN A CLOSEDEND STOCK FUND HAVE SOARED SINCE
INVESTOR JOHN TEMPLETON BOUGHT A 2136 STAKE IN LATE DECEMBER THROUGH A
PRIVATE PLACEMENT

THE JUMP IN MARKET PRICE HAS OUTSTRIPPED THE GAIN IN THE FUND'S PORTFOLIO
MAKING THE STOCK LOOK LESS TEMPTING THAN WHEN MR TEMPLETON BOUGHT HIS
STAKE

MR TEMPLETON SAID IN AN INTERVIEW THAT THE LIST OF INVESTMENTS THEY HAVE
IN THE FUND INCLUDED A LOT OF STOCKS THAT HE CONSIDERED BARGAINS HE SAID
THAT THE 51 MILLION INVESTMENT WAS NO BIG DEAL AND THAT HE HAD AT
LEAST A DOZEN LARGER INVESTMENTS IN MUTUAL FUNDS OF VARIOUS TYPES

CLOSEDEND FUNDS ARE PROFESSIONALLY MANAGED POOLS OF SECURITIES THAT ARE
PUBLICLY TRADED BECAUSE THEIR STOCK PRICES ARE SET BY TRADING IN THE
MARKET THEY OFTEN SELL AT DISCOUNTS OR PREMIUMS MEANING BELOW OR ABOVE
 THE NET ASSET VALUE OR VALUE OF THE HOLDINGS IN THE FUND PORTFOLIO

SINCE MR TEMPLETON'S ACQUISITION WAS REPORTED THE SHARES OF ZSEVEN HAVE
SHOT UP TO A 12 PREMIUM ABOVE NET ASSET VALUE THAT MEANS SHAREHOLDERS
TRYING TO RIDE PIGGYBACK ON HIS INVESTMENT ARE PAYING CONSIDERABLY MORE FOR
THE SAME PORTFOLIO OF SECURITIES

MR TEMPLETON WHO BOUGHT THE SHARES THROUGH AGAPE CO AN ENTITY THAT HE
OWNS BECAME ZSEVEN'S LARGEST SHAREHOLDER IN THE TRANSACTION HIS TOTAL
STAKE IN THE FUND IS PROBABLY GREATER THAN 2136 A ZSEVEN SPOKESMAN SAID
BECAUSE HE ALREADY OWNED STOCK IN THE FUND BARRY ZISKIN THE MANAGER OF THE
FUND OWNS 1858 OF THE FUND'S SHARES 9301070026 930107 ENTERPRISE 
FINANCING SMALL BUSINESS MINORITY LENDERS ENVIRONMENTAL FIRMS GET GOOD
NEWS  BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL

MANY LENDERS FIND MINORITYBUSINESS LOANS AREN'T RISKIER THAN OTHERS

FOR THE FIRST TIME THE FEDERAL RESERVE BOARD ASKED SENIOR LOAN OFFICERS HOW
DEFAULT RATES OF LOANS UNDER THEIR MINORITYLENDING PROGRAMS COMPARE WITH
DEFAULT RATES AMONG THEIR OTHER BUSINESS LOANS IN THE FED'S LATEST
QUARTERLY SURVEY OF 58 LARGE BANKS 20 OF THE 34 RESPONDING LOAN OFFICERS
SAID THAT SUCH DEFAULT RATES WERE ABOUT THE SAME

TWELVE LOAN OFFICERS SAID THE DEFAULT RATES OF THEIR MINORITYBUSINESS LOANS
WERE SOMEWHAT HIGHER THAN OTHER BUSINESS LOANS TWO OFFICERS SAID THEIR
MINORITYLENDING DEFAULT RATES WERE SOMEWHAT LOWER THAN OTHER LOANS

THERE'S A PERCEPTION THAT MINORITY LOANS ARE RISKIER SAYS GAVIN CHEN
SENIOR PROGRAM MANAGER OF CAPITALACCESS DEVELOPMENT AT THE US COMMERCE
DEPARTMENT'S MINORITY BUSINESS DEVELOPMENT AGENCY BUT THAT VIEW IS
PRIMARILY HELD BY BANKS THAT AREN'T FAMILIAR WITH LENDING TO THE MINORITY
BUSINESS COMMUNITY HE CONTINUES

BIG BANKS ARE GAINING GREATER EXPERIENCE WITH LENDING TO MINORITY
BUSINESSES THE FED'S SURVEY ALSO SUGGESTS FORTYFIVE PERCENT OF THE BANKS
SURVEYED SAID THAT THEY HAVE OPERATED MINORITYLENDING PROGRAMS FOR MORE
THAN FOUR YEARS FORTYNINE PERCENT SAID THE DOLLAR VOLUME OF SUCH LENDING
HAD GROWN MORE THAN 5 OVER THE PAST 12 MONTHS

AS A RESULT MORE BANKS UNDERSTAND THE RISKS OF LENDING TO MINORITYOWNED
ENTERPRISES SAYS RONALD HOMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF
BOSTON BANK OF COMMERCE WHERE MINORITY FIRMS HOLD 75 OF ITS 60 MILLION IN
LOANS OUTSTANDING AT SOME BANKS MINORITY BUSINESS OWNERS MUST MEET HIGHER
LOANAPPROVAL STANDARDS MR HOMER SAYS AND THIS ALSO HAS PROBABLY HELPED
TO HOLD DOWN THEIR DEFAULT RATES

ENVIRONMENTALSERVICES FIRMS SEE BADLY NEEDED REVIVAL OF FUNDING

LAST YEAR FINANCIAL MARKETS SAW THAT THE FASTGROWING
ENVIRONMENTALSERVICES INDUSTRY WASN'T IMMUNE TO AN ECONOMIC DOWNTURN AND
REACTED HARSHLY INVESTOR INTEREST SLUMPED ALONG WITH THE FINANCIAL
PERFORMANCE OF SUCH COMPANIES

IT WAS A TOUGH YEAR FOR RAISING MONEY SAYS GRANT FERRIER EDITOR IN CHIEF
OF ENVIRONMENTAL BUSINESS JOURNAL A NEWSLETTER IN SAN DIEGO PUBLIC
OFFERINGS DIDN'T GET DONE VENTURE FIRMS DIDN'T MAKE DEALS PEOPLE THOUGHT
THE INDUSTRY WAS RECESSION PROOF HE ADDS BUT THE RECESSION ACTUALLY
AFFECTED THE ENVIRONMENTAL INDUSTRY MORE THAN OTHER INDUSTRIES

INDUSTRY WATCHERS NOW DETECT SIGNS OF A PICKUP IN FINANCING OF THE SMALLER
COMPANIES THAT DOMINATE THE ENVIRONMENTALSERVICES FIELD SOME MONEY IS
COMING FROM SELLING ADDITIONAL STOCK TO THE PUBLIC A HUGE SOURCE OF
INDUSTRY FUNDING THAT NEARLY DRIED UP DURING 1992

THE PRICE OF MANY ENVIRONMENTALSERVICES STOCKS HAS DECLINED SO MUCH THAT
INVESTORS VIEW THESE SHARES AS BARGAINS SOME ANALYSTS SAY LAST MONTH
AIRCURE ENVIRONMENTAL INC IN MINNEAPOLIS SOLD 106 MILLION OF STOCK AFTER
DEMAND ENABLED IT TO INCREASE THE PUBLIC OFFERING'S ORIGINAL SIZE BY 10 TO
265 MILLION SHARES FROM 24 MILLION SHARES

NEW FUNDING SOURCES ALSO ARE EMERGING AMONG THEM ARE INSTITUTIONAL LENDERS
SUCH AS INSURANCE COMPANIES WHICH LONG FEARED THE POTENTIAL LIABILITY OF
INVESTING IN ENVIRONMENTAL COMPANIES MORE INSURERS ARE STARTING TO
UNDERSTAND THAT THE RISK IS NEGLIGIBLE IF IT'S PROPERLY MANAGED SAYS PAUL
ZOFNASS PRESIDENT OF ENVIRONMENTAL FINANCIAL CONSULTING GROUP INC IN NEW
YORK HE SAYS THAT RECENT RECIPIENTS OF INSURERS' LOANS INCLUDE TWO
ENVIRONMENTAL ENGINEERING AND CONSULTING CONCERNS GOLDER ASSOCIATES CORP
IN ATLANTA AND WOODWARDCLYDE CONSULTANTS GROUP INC IN DENVER

LARGE INVESTMENT FUNDS SUCH AS THOMAS H LEE CO IN BOSTON AND EM WARBURG
PINCUS & CO IN NEW YORK ALSO ARE TAKING A NEW INTEREST IN ENVIRONMENTAL
FIRMS AS THEIR OUTLOOK IMPROVES MR ZOFNASS REPORTS THE AVERAGE
ENVIRONMENTAL COMPANY EXPECTS PRETAX PROFIT TO INCREASE 30 THIS YEAR ON A
15 RISE IN REVENUE ACCORDING TO A NOVEMBER SURVEY OF 120 FIRMS BY
ENVIRONMENTAL FINANCIAL CONSULTING GROUP

SUCH FORECASTS ARE ANOTHER REASON THAT SUBSTANTIAL AMOUNTS OF CAPITAL ARE
BEGINNING AGAIN TO FLOW INTO THE ENVIRONMENTAL FIELD MR ZOFNASS SAYS

MORE BUSINESS OWNERS MUST BACK LOANS WITH PERSONAL GUARANTEES

AMONG THE ONEROUS NEW RESTRICTIONS FACING SMALLBUSINESS BORROWERS THESE
DAYS IS THE NEARCERTAINTY THAT THEY WILL HAVE TO MAKE PERSONAL PLEDGES TO
REPAY THE BUSINESS DEBT A 1992 SURVEY OF 6000 BUSINESS OWNERS CONCLUDED
THAT SUCH GUARANTEES WERE THE MOST FREQUENTLY ENCOUNTERED NEW CONDITION FOR
GETTING A LOAN NATIONAL SMALL BUSINESS UNITED A TRADE GROUP IN WASHINGTON
AND ARTHUR ANDERSEN'S ENTERPRISE GROUP CONDUCTED THE ANNUAL SURVEY

DURING BETTER ECONOMIC TIMES BANKS OFTEN WAIVED SUCH REQUIREMENTS IN ORDER
TO ATTRACT SMALLBUSINESS BORROWERS RECALLS H RICK FUMO MANAGING DIRECTOR
OF ENTERPRISE GROUP IN NEW YORK BUT LATELY HE SAYS THERE'S BEEN SOME
BACKSLIDING BY THE BANKS SOME BUSINESS OWNERS MUST RENEW PERSONAL PLEDGES
TO SECURE NEW DEBT MR FUMO SAYS EVEN THOUGH THEIR LENDERS HAD DROPPED THE
GUARANTEES AFTER THEY PROVED THEIR CREDITWORTHINESS

OTHER BANKS ARE DEMANDING THAT A BUSINESS OWNER'S SPOUSE ALSO MAKE A
PERSONAL PLEDGE TO REPAY A LOAN SAYS CHARLES TATELBAUM A TAMPA FLA
LAWYER AND COUNSEL TO THE NATIONAL ASSOCIATION OF CREDIT MANAGEMENT YET
DOING SO FURTHER JEOPARDIZES A BUSINESS OWNER'S PERSONAL ASSETS IF THE
COMPANY LATER DEFAULTS ON ITS DEBT MR TATELBAUM ADDS MOST STATES FORBID
THE CREDITOR OF ONE SPOUSE FROM FORECLOSING ON ASSETS OWNED JOINTLY BY A
HUSBAND AND WIFE HE SAYS A COUPLE LOSES THAT PROTECTION WHEN BOTH SIGN THE
GUARANTEE 9301070025 930107 INTERNATIONAL DISABLED TANKER OFF
SHETLANDS FORMS OIL SLICK  SPILL CREWS HOPE TO LAUNCH A SALVAGE
OPERATION MARINE LIFE IS AFFECTED  BY KEN WELLS AND TONY HORWITZ
 STAFF REPORTERS OF THE WALL STREET JOURNAL

LONDON BRITISH OILSPILL CREWS HELD OUT HOPE THAT A SALVAGE OPERATION
MIGHT BE LAUNCHED TO RECOVER CRUDE OIL GUSHING FROM A SUPERTANKER AGROUND ON
THE ROCKY SHORES OF THE SHETLAND ISLANDS HIGH WINDS AND WAVES WASHED THE
TANKER INTO THE ISLANDS OFF SCOTLAND TUESDAY

THE FATE OF THE USOWNED LIBERIANREGISTERED BRAER WAS STILL UNCERTAIN AT
SUNDOWN YESTERDAY AFTER A DAY OF POUNDING BY HEAVY SURF THE SHIP WAS HALF
SUBMERGED BUT APPARENTLY STILL IN ONE PIECE OIL LOOSED FROM THE TANKER HAD
FORMED A THIN NARROW SLICK AN ESTIMATED NINE MILES LONG AND HAD BEGUN TO
TAKE A TOLL ON MARINE LIFE IN A COVE NEAR QUENDALE BAY WHERE THE SHIP WENT
AGROUND

ENVIRONMENTALISTS SAID AS MANY AS 10000 SEA BIRDS WERE IN JEOPARDY AND
SHETLAND ISLAND FISHING INTERESTS SAID THE SPILLED OIL ASSUMING THE SHIP
BREAKS UP AND DUMPS ITS ENTIRE 25 MILLION GALLON CARGO MIGHT YET CRIPPLE
THE ISLANDS' 80 MILLION 124 MILLION FISHING INDUSTRY

DESPITE THE STENCH OF OIL AND DIESEL AND BEACHES AND A BAY CLOAKED IN A
LIGHT BROWN MUDDY COLOR THE SPILL IS NOT CATASTROPHIC YET SAID JOHN
GOODLAD HEAD OF THE SHETLAND FISHERMEN'S ASSOCIATION WHO TOURED A REMOTE
SHETLAND BEACH AT CRO GEO WHERE MOST OF THE TANKER'S SPILLED OIL HAS
CONGREGATED HE SAID FISHERMEN WERE ALSO CONCERNED ABOUT WHAT EFFECT THE
DUMPING OF 120 TONS OF CHEMICAL DISPERSANTS BY SPILLCONTROL AIRPLANES
YESTERDAY MIGHT HAVE ON THE ISLANDS' LONGTERM FISH POPULATIONS

SOME OF THESE DISPERSANTS ARE TOXIC AND WE ARE CONCERNED ABOUT THAT MR
GOODLAD SAID THAT CONCERN WAS ECHOED BY THE SHETLAND SALMON FARMERS'
ASSOCIATION WHICH WARNED THAT THE CHEMICALS ESSENTIALLY DETERGENTS THAT
BREAK UP OIL AND ALLOW IT TO SINK INTO THE SEA COULD PROVE DISASTROUS TO
THE ISLANDS' NUMEROUS SALMON FARMS THERE ARE NO FARMS IN THE IMMEDIATE
VICINITY OF THE SPILL BUT WINDS AND TIDES COULD PUSH OIL INTO COASTAL AREAS
WHERE THEY DO EXIST

MEANWHILE CONTROVERSY GREW OVER WHETHER THE CREW OF THE BRAER WHICH LOST
POWER IN A 22MILEWIDE CHANNEL ABANDONED THE SHIP TOO SOON THE OWNER OF A
TUGBOAT CONCERN THAT DISPATCHED BOATS TO INTERCEPT THE FOUNDERING SHIP TOLD
BBC RADIO THAT THE SPILL COULD HAVE BEEN AVOIDED IF THE CREW HAD BEEN LEFT
ON BOARD LONG ENOUGH TO CATCH TOW ROPES THROWN TO THE SHIP BY TUG CREWS

I AM VERY ANGRY AND VERY FRUSTRATED BY THE WHOLE THING TUG OWNER BARRY
CORK TOLD BBC RADIO 4 BUT A BRITISH COASTGUARD SEARCH AND RESCUE OFFICIAL
DEFENDED THE DECISION TO EVACUATE THE SHIP CITING STORMY SEAS AND DANGER TO
THE CREW FOUR CREW MEMBERS WERE INDEED PUT BACK ON THE SHIP IN A LASTDITCH
EFFORT TO TOW IT OUT OF DANGER BUT THAT EFFORT FAILED

THE TANKER ONE CREW MEMBER SAID APPARENTLY LOST POWER WHEN WATER SEEPING
INTO FUEL LINES CLOGGED ITS ENGINES THE SHIP OWNED BY BRAER CORP A
BERMUDA SUBSIDIARY OF BERGVAL & HUDNER SHIP MANAGEMENT CO STAMFORD CONN
RECENTLY GOT A CLEAN BILL OF HEALTH ON THE TANKER ADVISORY CENTER'S REGISTRY
OF VESSELS

THIS APPEARS TO BE A CASE OF A TANKER BEING IN THE WRONG PLACE AT THE WRONG
TIME SAID RICHARD GOLOB OF WORLD INFORMATION SYSTEMS A CAMBRIDGE MASS
OILSPILL MONITORING CONCERN THE SHIP WAS IN GOOD SHAPE IT DIDN'T HAVE A
HISTORY OF ANY MAJOR ACCIDENTS OR SPILLS

STILL SCOTTISH ENVIRONMENTAL OFFICIALS WERE CRITICAL OF THE DECISION BY THE
CREW TO TAKE THE SHIP THROUGH THE NARROW SHETLANDS CHANNEL IN THE FIRST
PLACE WITH HINDSIGHT IT WAS A FOOLHARDY OPERATION SAID SIR HECTOR MUNRO
THE SCOTTISH OFFICE ENVIRONMENT MINISTER

BUT THE ABERDEEN COAST GUARD SAID THE CHANNEL IS A WIDE SPACE THROUGH WHICH
TO AIM YOUR TANKER STILL MR GOLOB NOTED THAT A US COAST GUARD PROPOSAL
THAT IS LIKELY TO BE IMPLEMENTED WILL REQUIRE US TANKERS OPERATING IN
ENVIRONMENTALLY SENSITIVE AREAS TO BE ESCORTED BY TWO TOWING VESSELS THAT
SORT OF REGULATION MIGHT HAVE HELPED PREVENT THIS KIND OF ACCIDENT

THOUGH THE WEATHER HINDERED SALVAGE OPERATIONS YESTERDAY IT ALSO HELPED
CONFINE THE SLICK THE WINDS ARE SOUTHWESTERLY WHICH KEEPS THE SLICK
INLAND AND STOPS IT FROM SPREADING THE WAVES BEAT THE OIL UP AGAINST THE
ROCKS SO NATURE IS HELPING TO DISPERSE IT A BRITISH DEPARTMENT OF
TRANSPORT SPOKESWOMAN SAID

MEANWHILE SPILLCONTAINMENT CREWS WERE MOVING INTO POSITION HOPING FOR A
BREAK IN THE WEATHER THE SHETLAND ISLANDS COUNCIL THE LOCAL GOVERNMENT
SAID IT HAD SPREAD BOOMS ON THE WATER NEAR WILDLIFE AREAS AND OIL SPILL
RESPONSE LTD A BRITISH INDUSTRY SPILL CONSORTIUM SAID IT SENT AN
EIGHTPERSON CREW AND 70 TONS OF SPILLCONTAINMENT GEAR TO THE SCENE

THE DEPARTMENT OF TRANSPORT ESTIMATED THAT 40 OF THE SPILLED OIL WOULD
EVAPORATE AND 20 TO 30 WOULD DISPERSE IN THE CHOPPY SEAS THAT WOULD LEAVE
AT LEAST 30 TO BE CLEANED UP

THE TANKER CARRIED OIL OWNED BY ULTRAMAR CORP TARRYTOWN NY WHICH SAID
THE OIL WAS HEADED FOR ITS ST ROMUALD REFINERY IN CANADA THE SHIP WAS EN
ROUTE FROM MONGSTAD NORWAY

THE BRAER SPILL HAS THE POTENTIAL TO BE MORE THAN TWICE AS LARGE AS THE
EXXON VALDEZ SPILL WHICH DUMPED 11 MILLION GALLONS OF OIL HOWEVER WHILE
BOTH ARE HUGE ENVIRONMENTAL DISASTERS NEITHER THE BRAER NOR THE VALDEZ RANK
THAT HIGH IN THE HISTORY OF SPILLS IN TERMS OF TONNAGE THE BRAER COULD
LOSE SOME 80000 OR SO TONS OF OIL AND THE VALDEZ LOST LESS THAN 40000
TONS IN COMPARISON THE LARGEST INTERNATIONAL SPILL WHICH OCCURRED IN 1979
IN THE CARIBBEAN DUMPED 300000 TONS OF CRUDE

BHUSHAN BAHREE IN GENEVA CONTRIBUTED TO THIS ARTICLE

JULY 19 1979 COLLISION OFF TRINIDAD AND TOBAGO OF THE ATLANTIC EMPRESS
AND AEGEAN CAPTAIN 300000 TONS SPILLED

AUG 6 1983 FIRE ABOARD THE CASTILIO DE BELLVER OFF CAPE TOWN SOUTH
AFRICA 250000 TONS SPILLED

MARCH 16 1978 TANKER AMOCO CADIZ RAN AGROUND OFF THE COAST OF NORTHWEST
FRANCE 223000 TONS SPILLED

MARCH 18 1967 THE TORREY CANYON GROUNDED OFF THE COAST OF LANDS' END
ENGLAND 119000 TONS SPILLED

DEC 19 1972 SEA STAR INVOLVED IN A COLLISION IN THE GULF OF OMAN
115000 TONS SPILLED

MAY 12 1976 URQUIOLA RUNS AGROUND NEAR LA CORUNA SPAIN 100000 TONS
SPILLED

FEB 25 1977 FIRE ABOARD THE HAWAIIAN PATRIOT IN THE NORTHERN PACIFIC
OCEAN 99000 TONS SPILLED

NOTE IN SHIPPING OIL NORMALLY IS MEASURED BY TON A TON OF CRUDE OIL IS
ROUGHLY EQUAL TO 300 GALLONS BUT THE EXACT NUMBER OF GALLONS VARIES
ACCORDING TO THE TYPE OF OIL 9301070024 930107 BUSINESS BRIEF VONS
COS SUPERMARKET CHAIN LINKS WITH ADVANCED PROMOTION

VONS COS SAID IT AGREED IN PRINCIPLE TO INSTALL AN ELECTRONIC MARKETING
SYSTEM IN ALL OF ITS 345 STORES AND TO BECOME AN EQUITY INVESTOR IN
ADVANCED PROMOTION TECHNOLOGIES INC OWNER OF THE SYSTEM

UNDER THE AGREEMENT VONS AN ARCADIA CALIF SUPERMARKET CHAIN WILL BUY
716332 ADVANCED PROMOTION SHARES REPRESENTING A STAKE OF ABOUT 93 FOR
ABOUT 7 A SHARE ADVANCED PROMOTION DEERFIELD BEACH FLA DEVELOPED THE
SYSTEM CALLED VISION VALUE NETWORK WHICH OFFERS ELECTRONIC MARKETING AND
FINANCIAL SERVICES AT SUPERMARKET CHECKOUT COUNTERS THE COMPANIES ALSO PLAN
TO BECOME DEVELOPMENT PARTNERS ON FUTURE TECHNOLOGY PRODUCTS AND TO HAVE A
VONS REPRESENTATIVE JOIN ADVANCED PROMOTION'S BOARD VONS SAID 9301070023
930107 QUARTERLY MUTUAL FUNDS REVIEW ANALYSTS ARE SKITTISH ON PROSPECTS 
FOR STOCK FUNDS IN COMING YEAR  BY JONATHAN CLEMENTS STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK MIX TOGETHER A BUNCH OF STOCK FUNDS KEEP SOME BOND AND MONEY
MARKET FUNDS FOR SAFETY THEN CROSS YOUR FINGERS AND HOPE FOR THE BEST

WHILE MUTUAL FUND ANALYSTS AREN'T BEING QUITE SO BLUNT THAT'S PRETTY MUCH
THEIR ADVICE FOR 1993 WITH STOCK FUNDS UP AN AVERAGE OF 66 SINCE THE
OCTOBER 1990 MARKET LOWS ANALYSTS ARE SKITTISH ABOUT THE PROSPECTS FOR THE
NEXT 12 MONTHS

WE'RE DEFENSIVE ABOUT 1993 SAYS CHARLES CAIN PRESIDENT OF CAIN ASSET
MANAGEMENT CORP A MANHATTAN INVESTMENT ADVISER WE DON'T THINK THE
ECONOMY IS AS GOOD AS RECENT STATISTICS HAVE INDICATED THE THING THAT MIGHT
TOUCH OFF A CORRECTION IS RISING INTEREST RATES OR AN INTERNATIONAL CRISIS

MR CAIN RECKONS THERE WILL BE A STOCK MARKET CORRECTION OF AT LEAST 15
SOMETIME THIS YEAR WITH SMALL AND MIDSIZE STOCK FUNDS ESPECIALLY HARD HIT
AND WE COULD HAVE A FULLSCALE BEAR MARKET WARNS MR CAIN THAT WOULD BE
A DECLINE OF 25 OR MORE

FACED WITH THAT PROSPECT WHAT SHOULD AN INVESTOR DO MR CAIN DREW UP A
PORTFOLIO FOR A 35YEAROLD INVESTOR WHICH IS SHOWN IN THE ACCOMPANYING
CHART HE ADVISES PUTTING 20 IN A MONEY MARKET FUND T ROWE PRICE PRIME
RESERVE WITH AN ADDITIONAL 40 SPLIT BETWEEN MUTUAL BEACON FUND AND LINDNER
DIVIDEND FUND TWO STOCK FUNDS KNOWN FOR THEIR BEAR MARKET RESILIENCE

WITH THE FINAL 40 MR CAIN IS MORE DARING HE ADVISES BUYING FINANCIAL
STRATEGIC HEALTH SCIENCES PORTFOLIO AND FIDELITY SELECT ENVIRONMENTAL
SERVICES PORTFOLIO TWO SECTOR FUNDS THAT FOCUS ON STOCKS WITH RAPIDLY
INCREASING EARNINGS

WITH THE GROWTH FUNDS WE'RE STAYING NEAR THE CENTRAL THEMES OF THE CLINTON
ADMINISTRATION NAMELY MEDICAL CARE AND ENVIRONMENTAL SAYS MR CAIN BOTH
HAVE BEEN LAGGARDS WE THINK WE'RE PICKING THEM UP FAIRLY CHEAPLY

THOUGH THE MOVE TO HOLD DOWN MEDICAL COSTS MIGHT SEEM LIKE BAD NEWS FOR
MEDICAL STOCKS MR CAIN THINKS THIS PROSPECT IS ALREADY REFLECTED IN STOCK
PRICES AND HE THINKS HEALTH CARE COMPANIES COULD GAIN BECAUSE OF A PUSH BY
THE GOVERNMENT TO INCREASE THE NUMBER OF PEOPLE RECEIVING HEALTH CARE
BENEFITS

LEWIS ALTFEST PRESIDENT OF NEW YORK'S INVESTMENT ADVISER LJ ALTFEST &
CO IS ALSO WORRIED ABOUT THE NEXT 12 MONTHS I DON'T THINK PEOPLE WILL
GET RICH IN THE STOCK MARKET IN 1993 SAYS MR ALTFEST

FOR A 50YEAROLD INVESTOR MR ALTFEST ADVISES A 30 STAKE IN TWO
SHORTTERM BOND FUNDS BENHAM ADJUSTABLE RATE GOVERNMENT SECURITIES FUND AND
VANGUARD SHORTTERM CORPORATE BOND PORTFOLIO THESE FUNDS SHOULDN'T GET HIT
HARD IF INTEREST RATES RISE AS THE ECONOMY COMES OUT OF ITS DOLDRUMS

MR ALTFEST DESCRIBES HIMSELF AS VALUE ORIENTED AND THAT STANCE IS
REFLECTED IN THE FOUR STOCK FUNDS HE RECOMMENDS HE SUGGESTS THAT THE
50YEAROLD INVESTORS PUT 40 OF THEIR PORTFOLIO IN NEUBERGER & BERMAN
GUARDIAN FUND AND PENNSYLVANIA MUTUAL FUND TWO WELLDIVERSIFIED VALUE FUNDS
FAVORING STOCKS THAT ARE CHEAP RELATIVE TO ASSETS OR CURRENT EARNINGS THE
NEUBERGER FUND FOCUSES ON LARGERCOMPANY STOCKS WHILE PENNSYLVANIA MUTUAL
DABBLES IN SMALLER COMPANIES

FOR THE FINAL 30 MR ALTFEST SUGGESTS TWO SPECIALIZED FUNDS FIDELITY REAL
ESTATE INVESTMENT PORTFOLIO AND JAPAN FUND WHICH IS MANAGED BY SCUDDER
STEVENS & CLARK

THE NIKKEI IS DOWN MORE THAN 50 FROM ITS HIGH NOTES MR ALTFEST THE
JAPANESE MARKET IS ACTUALLY CHEAPER THAN THE US MARKET RIGHT NOW BASED ON
PRICETOCASH FLOW AND PRICETOBOOK VALUE

WHY BUY THE FIDELITY FUND REAL ESTATE IS THE GREAT PLAY FOR THE 1990S
ARGUES MR ALTFEST I THINK REAL ESTATE WILL PICK UP EARLIER THAN PEOPLE
THINK THE HOUSE ON YOUR CORNER MAY BE THE BEST INVESTMENT YOU CAN MAKE

JOHN BLANKINSHIP JR OF BLANKINSHIP & FOSTER A DEL MAR CALIF INVESTMENT
ADVISER ISN'T GIVEN TO GRAND MARKET PREDICTIONS I DON'T KNOW WHAT'S GOING
TO HAPPEN IN 1993 SO I WANT TO BE EXPOSED TO BOTH GROWTH AND VALUE SAYS
MR BLANKINSHIP IT'S VERY IMPORTANT TO DIVERSIFY RELATIVE TO STYLES

MR BLANKINSHIP SAYS THAT A 65YEAROLD RETIREE SHOULD HAVE TWO CORE
HOLDINGS T ROWE PRICE EQUITYINCOME FUND AND JANUS FUND JANUS BUYS GROWTH
COMPANIES WHILE THE T ROWE PRICE FUND STICKS WITH VALUE STOCKS BOTH
INVEST IN LARGECOMPANY STOCKS

TO ADD FURTHER DIVERSIFICATION MR BLANKINSHIP RECOMMENDS A SMALLSTOCK
FUND PENNSYLVANIA MUTUAL AND A FOREIGNSTOCK FUND T ROWE PRICE
INTERNATIONAL STOCK FUND

I BELIEVE EVERY PORTFOLIO SHOULD HAVE A 5 TO 10 COMMITMENT TO SMALL
STOCKS ESPECIALLY IN 1993 HE SAYS I ALSO THINK EVERY PORTFOLIO SHOULD
HAVE SOME FOREIGN STOCKS BOTH JAPAN AND EUROPE ARE BEHIND US IN COMING OUT
OF THEIR RECESSIONS THEY'LL BE REDUCING THEIR INTEREST RATES SOON THEIR
EARNINGS WILL START TO INCREASE AND THEIR STOCKS WILL GO UP IN
ANTICIPATION

IN ALL MR BLANKINSHIP RECOMMENDS THAT 65YEAROLD INVESTORS KEEP 55 OF
THEIR PORTFOLIO IN STOCKS WITH THE OTHER 45 IN BOND AND MONEY MARKET
FUNDS WHILE THE STOCK PORTION MAY SEEM LARGE HE SAYS THAT'S NECESSARY TO
TRY TO ENSURE THAT THE PORTFOLIO GENERATES LONGTERM INFLATIONBEATING
RETURNS

WITH HIS RECOMMENDED PORTFOLIO MR BLANKINSHIP RECKONS AN INVESTOR COULD
SPEND 5 OR 6 OF THE PORTFOLIO'S VALUE EACH YEAR THAT WOULD HOPEFULLY
LEAVE ENOUGH TO KEEP PARITY WITH INFLATION HE SAYS 9301070022 930107
FOREIGN EXCHANGE SPECULATION ON GERMAN RATE CUT HELPS DOLLAR REBOUND
TOWARD RECENT HIGHS  BY GREGORY L WHITE SPECIAL TO THE WALL
STREET JOURNAL

NEW YORK A SERIES OF SUBTLY SUPPORTIVE FACTORS HELPED THE DOLLAR CLIMB
BACK TOWARD RECENT HIGHS YESTERDAY BUT DEALERS SAID REAL UPWARD MOMENTUM
WON'T ARRIVE UNTIL LATER THIS WEEK

THE DOLLAR'S REBOUND CAME AS PLAYERS CONSIDERED THE CHANCES THAT GERMANY'S
BUNDESBANK WOULD LOWER INTEREST RATES TODAY IN ADDITION DEALERS SAID
RISING TENSIONS BETWEEN THE US AND IRAQ COMBINED WITH A NUMBER OF BULLISH
TECHNICAL FACTORS TO ENCOURAGE DOLLAR BUYERS LATE IN THE DAY

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16340 MARKS UP FROM 16255
MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT
12515 YEN ABOVE 12483 YEN STERLING WAS TRADING AT 15420 OFF FROM
15503

AT MIDDAY IN TOKYO THURSDAY THE DOLLAR WAS TRADING AT 12514 YEN AND 16340
MARKS

NOW WE'RE STARTING TO SEE SOME STRATEGIC POSITIONTAKING IN EXPECTATION OF
THE DOLLAR GOING HIGHER SAID FRANK PUSATERI VICE PRESIDENT IN CORPORATE
FOREIGN EXCHANGE AT BANK OF BOSTON

BUT WITH NO CLEAR CHANGE IN FUNDAMENTALS SAID BILL BERTHA CHIEF DEALER AT
MELLON BANK THE DOLLAR IS SITTING AND WAITING

PLAYERS SAID TUESDAY'S DOLLAR SELLOFF APPEARED TO RUN INTO SOLID BUYING IN
ASIAN TRADING WEDNESDAY WHICH ENCOURAGED INVESTORS TO MOVE BACK INTO THE
DOLLAR

LATER SPECULATION THAT THE BUNDESBANK MIGHT LOWER RATES POSSIBLY AS
EARLY AS TODAY'S MEETING OF THE CENTRAL BANK COUNCIL SPURRED MORE BUYING
PLAYERS SAID

BUT DEALERS COULD POINT TO NO CLEAR REASON THAT THE MARKET WOULD BELIEVE THE
BUNDESBANK WILL CUT RATES TODAY

IN A SPEECH IN OSLO BUNDESBANK PRESIDENT HELMUT SCHLESINGER SEEMED TO ECHO
THE HARD LINE ON RATES AND TO OFFER THE BELEAGUERED FRENCH FRANC LITTLE
SOLACE

MR SCHLESINGER SAID IT WOULD BE WRONG IF GERMAN MONETARY POLICY IN THE
CURRENT SITUATION WERE FORMULATED IN VIEW OF SHORTTERM PROBLEMS BE IT IN
OUR OWN ECONOMIC SITUATION IN RELATION TO OUR PARTNER COUNTRIES

LATER UNSUBSTANTIATED RUMORS THAT MR SCHLESINGER HAD DISCUSSED THE
POSSIBILITY OF A RATE CUT ENCOURAGED A BRIEF FLURRY OF DOLLAR BUYING
DEALERS SAID

LATE IN NEW YORK THE MARK WAS QUOTED AT 34058 FRANCS OFF FROM 34128
FRANCS TUESDAY

MORRIS ARMSTRONG MANAGER OF FOREIGN EXCHANGE AT GIROCREDIT BANK SAID THE
LOGIC BEHIND THE RATECUT HOPES IS THAT THE BUNDESBANK MAY BE TIRING OF
SUPPORTING THE FRANC WITH INTERVENTION

A COMBINATION OF OTHER MODERATELY BULLISH ELEMENTS HELPED THE DOLLAR
YESTERDAY DEALERS SAID

DOLLAR BUYERS WERE ENCOURAGED BY REPORTS THAT THE BUSH ADMINISTRATION PLANS
TO ISSUE A 48HOUR ULTIMATUM TO IRAQ DEMANDING IT REMOVE SURFACETOAIR
MISSILES NOW IN THE NOFLY ZONE IN SOUTHERN IRAQ OR FACE ALLIED
RETALIATION

TECHNICALLY DRIVEN SELLING OF THE POUND AND THE SWISS FRANC AGAINST THE
DOLLAR ALSO SUPPORTED THE DOLLAR AGAINST THE MARK PARTICIPANTS SAID

AFTER ITS EXPLOSIVE FIVECENT SURGE AGAINST THE DOLLAR TUESDAY DEALERS
SAID THE POUND RAN INTO HEAVY PROFITTAKING AS IT APPROACHED 15700 AND
ENDED LOWER

ALSO HELPING THE DOLLAR YESTERDAY DEALERS SAID WAS A DROP IN THE SWISS
FRANC WITH SWISS INTEREST RATES SLIPPING DEALERS SAID THE FRANC PLUNGED
AGAINST THE DOLLAR AND THE MARK DESPITE COMMENTS BY SWISS NATIONAL BANK
PRESIDENT MARCUS LUSSER THAT THE FRANC APPEARS STABLE

LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 14877 SWISS FRANCS UP FROM
14720 FRANCS TUESDAY THE MARK WAS TRADING AT 09105 FRANC WELL ABOVE
09056 FRANC TUESDAY

THE AUSTRALIAN DOLLAR MEANWHILE CONTINUED ITS SLIDE YESTERDAY DESPITE
WHAT TRADERS DESCRIBED AS HEAVY INTERVENTION BY THE RESERVE BANK OF
AUSTRALIA

LATE IN NEW YORK THE AUSTRALIAN DOLLAR WAS QUOTED AT 6693 US CENTS DOWN
FROM 6737 US CENTS TUESDAY 9301070021 930107 TECHNOLOGY ZEOS
INTERNATIONAL LTD COMPUTER CONCERN UNVEILS LESS EXPENSIVE LINE OF PCS

ZEOS INTERNATIONAL LTD SAID IT REPLACED ITS CURRENT LINE OF DESKTOP
PERSONAL COMPUTERS WITH NEW MODELS PRICED AS MUCH AS 18 LESS

THE ST PAUL MINN PERSONAL COMPUTER COMPANY SUFFERED HEAVY LOSSES THIS
YEAR BECAUSE OF AN INDUSTRYWIDE PRICE WAR

THE 20 NEW PCS WHICH ARE BASED ON VARIOUS VERSIONS OF INTEL CORP'S POPULAR
486 MICROPROCESSOR REPLACE A LINE THAT ITSELF WAS INTRODUCED ONLY FOUR
MONTHS AGO WE ARE ACTUALLY DESIGNING THE NEXT TWO GENERATIONS AS WE
SPEAK SAID RICK APPLE VICE PRESIDENT MARKETING

THE COMPANY WHICH REPORTED A NET LOSS OF 21 MILLION OR 245 A SHARE ON
SALES OF 1592 MILLION FOR THE FIRST NINE MONTHS OF 1992 SAID THE NEW
COMPUTERS INCLUDE IMPROVEMENTS IN GRAPHIC VIDEO PERFORMANCE AND DISK DRIVE
TRANSFER RATES 9301070020 930107 REVIEW & OUTLOOK EDITORIAL ASIDES
 THE DEFICIT IN PERSPECTIVE

WHILE READING ALL THE STORIES TODAY ABOUT THE HORRIBLE FEDERAL DEFICIT KEEP
SOMETHING IN MIND THE BUSH FIGURES ESTIMATE 1994 SPENDING GOING UP TO 152
TRILLION THE RESULTING DEFICIT NUMBER THAT'LL GET ALL THE ATTENTION IS 292
BILLION WHAT'S RARELY IF EVER NOTED IS THAT THIS MEANS THE REVENUE
INCLUDING TAXES WE ALL SEND THEM IN WASHINGTON WILL RISE TO ABOUT 129
TRILLION IF YOU THINK SENDING CONGRESS 129 TRILLION ISN'T ENOUGH YOU'LL
WELCOME PAYING EVEN MORE TAXES IF NOT THE DEFICIT IS A SPENDING PROBLEM
9301070019 930107 COMPUTERS PRODIGY FACES BIG SHAKEUP NEW
STRATEGY  BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET
JOURNAL

PRODIGY SERVICES CO WHOSE HOMECOMPUTER NETWORK IS GROWING FAST BUT IS
STILL LOSSRIDDEN IS EXPERIENCING A MAJOR SHAKEUP THAT HAS ALREADY LED TO
SEVERAL SENIORLEVEL DEPARTURES AND COULD ULTIMATELY INVOLVE WIDER CUTS IN
ITS WORK FORCE OF 1100

PRODIGY OFFICIALS CONFIRMED THE COMPANY IS IN THE MIDST OF A REORGANIZATION
BUT WOULDN'T COMMENT FURTHER BECAUSE THE CHANGES AREN'T FINISHED AND HAVEN'T
YET BEEN DISCLOSED TO EMPLOYEES BUT OFFICIALS SAID THE OVERHAUL WOULD GIVE
MORE POWER TO PRODIGY'S MARKETING EXECUTIVES AND LESS TO THE OFFICIALS IN
CHARGE OF PRODIGY'S PROGRAMMING THE SHOPPING GAMES AND BULLETIN BOARDS
USED BY ITS NEARLY ONE MILLION SUBSCRIBING HOUSEHOLDS

AT LEAST HALF A DOZEN TOP PROGRAMMING OFFICIALS ARE LEAVING PRODIGY
INCLUDING HENRY HEILBRUNN SENIOR VICE PRESIDENT WHO REPORTED TO PRESIDENT
ROSS GLATZER

INDUSTRY OFFICIALS SAID MR GLATZER WANTS TO OVERHAUL THE COMPANY BECAUSE HE
THINKS IT ISN'T RESPONDING QUICKLY ENOUGH TO THE CHAOTIC CHANGES IN CONSUMER
TECHNOLOGY

A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK
& CO PRODIGY HAS BECAME A LEADING PLAYER IN INTERACTIVE PERSONAL COMPUTER
SERVICES BUT ITS MARKETPLACE IS IN TURMOIL AS VIRTUALLY EVERY LARGE MEDIA
AND ELECTRONICS COMPANY CLAMORS TO OFFER INTERACTIVE CONSUMER SERVICES VIA
CABLE PHONE HANDHELD PERSONAL DIGITAL ASSISTANT AND OTHER TECHNOLOGIES

PRODIGY IS SIMPLY NOT NIMBLE ENOUGH YET TO RESPOND FAST ENOUGH TO THE
OPPORTUNITIES THAT EXIST IN THE MARKETPLACE SAID AN INDUSTRY OFFICIAL
FAMILIAR WITH THE REORGANIZATION

AMID MOUNTING ANXIETY ABOUT LAYOFFS MR GLATZER THIS WEEK CIRCULATED A MEMO
TO PRODIGY EMPLOYEES STATING I KNOW THAT MANY OF YOU HAVE HEARD HALLWAY
CONVERSATIONS ABOUT PLANS FOR REORGANIZING PRODIGY WE HAVE INDEED BEEN
WORKING ON A COMPREHENSIVE REORGANIZATION OF THE COMPANY FOR SEVERAL
MONTHS

MR GLATZER SAID IN THE MEMO THAT DETAILS OF THE CHANGES WEREN'T YET WORKED
OUT BUT THE PROCESS IS NEARING COMPLETION

EARLY WORK ON PRODIGY BEGAN IN 1982 AND THE SERVICE ROLLED OUT TO THE
PUBLIC IN 1988 IN ALL PRODIGY HAS ALREADY SPENT SOME 800 MILLION ON ITS
LARGE STAFF MASSIVE ADVERTISING AND ELABORATE TECHNOLOGY ACCORDING TO THE
NEW YORK CONSULTANT FIRM JUPITER COMMUNICATIONS

A RECENT JUPITER REPORT SAYS PRODIGY PREDICTED IN 1990 IT WOULD BECOME
PROFITABLE BY 1993 BUT THE REPORT STATES PRODIGY WILL BE LUCKY TO BREAK
EVEN BY 1995 PRODIGY EXECUTIVES ARE KNOWN TO BELIEVE THE COMPANY WILL
BREAK EVEN BEFORE 1995

BOTH IBM AND SEARS ARE STRUGGLING THROUGH DEEP BUSINESS DOWNTURNS AND CAN
ILL AFFORD TO KEEP PUMPING MONEY INTO A LOSING VENTURE BUT SPOKESMEN FOR
BOTH COMPANIES SAID YESTERDAY THEY REMAIN COMMITTED TO PRODIGY AND DON'T
EXPECT ANY CHANGE IN THEIR ROLES IN THE JOINT VENTURE

PRODIGY HAS HAD A BUMPY ROAD IMPOSING ITS VISION OF A MASSMARKET FAMILY
SERVICE ONTO THE VOLATILE CULTURE OF PC NETWORKS PRODIGY ORIGINALLY THOUGHT
IT WOULD DO BIG BUSINESS AS AN ELECTRONIC SHOPPING MALL COLLECTING REVENUE
AS CONSUMERS ORDERED CLOTHES AND CHOCOLATES AND GADGETS AT THEIR PCS

BUT SHOPPING NEVER MATERIALIZED AS THE PRODIGY'S ECONOMIC MAINSTAY
MEANWHILE CONSUMERS CLAMORED TO USE THE SYSTEM FOR ELECTRONIC MAIL
OVERWHELMING PRODIGY'S LIMITED TECHNOLOGY FOR THAT SERVICE PRODIGY HAS ALSO
HAD TROUBLE TRYING TO SCREEN ALL ITS ELECTRONIC MESSAGES TO KEEP THE SERVICE
GRATED

NOW PRODIGY OFFICIALS SAY THEY HAVE HIGH HOPES THAT THE SERVICE WILL SPREAD
OVER OTHER MEDIA BESIDES PCS IN DECEMBER IT ANNOUNCED A PLAN WITH CABLE
COMPANY LIBERTY MEDIA CORP TO EXPLORE WAYS OF USING PRODIGY'S SERVICES ON A
TV SET 9301070018 930107 ELECTRONICS SALES TO CONSUMERS ROSE HEALTHY
8 IN '92  BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET
JOURNAL

LAS VEGAS AFTER TWO YEARS OF NEARLY FLAT SALES THE US CONSUMER
ELECTRONICS INDUSTRY POSTED A HEALTHY 8 SALES RISE IN 1992 HELPED BY
BOOMING SALES OF PORTABLE COMPACTDISK PLAYERS LARGESCREEN TV SETS AND
HOMEOFFICE FAX MACHINES

AS THE WINTER CONSUMER ELECTRONICS SHOW OPENS HERE TODAY MANUFACTURERS AND
RETAILERS ARE MORE OPTIMISTIC AS SALES GROWTH RESUMES AFTER TWO YEARS OF
RECESSION WHICH CURTAILED CONSUMER PURCHASES OF THE OFTEN HIGHPRICED
GOODS

THE ELECTRONIC INDUSTRIES ASSOCIATION ESTIMATES THAT 1992 TOTAL FACTORY
SALES OF CONSUMER ELECTRONICS TOTALED 382 BILLION AN 8 INCREASE FROM
1991 THAT IS A BIG IMPROVEMENT FROM PROJECTIONS AT LAST YEAR'S SHOW THAT
1992 SALES WOULD RISE ONLY 2 TO LITTLE MORE THAN 36 BILLION

BUT THE INDUSTRY TRADE GROUP TOOK A CAUTIOUS OUTLOOK ON THE RECOVERY OF THE
US ECONOMY PREDICTING THAT GROWTH IN 1993 WILL BE MORE MODEST PERHAPS
COMING IN AT A 35 INCREASE TO 395 BILLION

LAST YEAR'S FIGURES DID SHOW SOME WEAKNESS IN TRADITIONALLY STRONG
CATEGORIES SALES OF CAMCORDERS ONE OF THE FASTEST GROWING SEGMENTS IN THE
LATE 1980S ACTUALLY FELL 5 TO 19 BILLION LAST YEAR FROM 2 BILLION THE
YEAR BEFORE THE 1992 LEVEL MARKS A 17 DROP FROM 1990 SALES OF 23 BILLION
AND SIGNALS THAT THE MARKET FOR THE LIGHTWEIGHT VIDEO CAMERAS MAY ALREADY BE
SATURATED EVEN THOUGH ONLY 19 OF HOMES NOW HAVE ONE

SEPARATE AUDIO COMPONENTS SUCH AS STEREO RECEIVERS AND TAPE DECKS HAD AN
EVEN SHARPER SALES DECLINE FALLING 17 TO 15 BILLION FROM 18 BILLION
THE YEAR BEFORE CONTRIBUTING TO THAT DECLINE WERE ROBUST SALES OF PORTABLE
GEAR

SALES OF PORTABLE AUDIO EQUIPMENT SUCH AS PORTABLE CD AND TAPE PLAYERS
REACHED 22 BILLION AN INCREASE OF 23 FROM 1991 ELSEWHERE SALES OF TV
SETS THAT ALSO INCLUDE VIDEOCASSETTE RECORDERS ROSE 46 TO 387 MILLION
WHILE SALES OF LASERDISK PLAYERS ROSE 28 TO 104 MILLION HOME FAX MACHINES
CONTINUED TO SELL WELL POSTING 30 GROWTH TO 247 MILLION LAST YEAR
9301070017 930107 INTERNATIONAL CS HOLDING DEFENDS MERGER AS SHARES
SLIDE  BY NICHOLAS BRAY AND MARGARET STUDER STAFF REPORTERS OF THE
WALL STREET JOURNAL

ZURICH THE CHAIRMAN OF CS HOLDING AG RAINER E GUT DEFENDED A DECISION
TO TAKE OVER SWISS VOLKSBANK AFTER THE SHARES OF HIS FINANCIAL SERVICES
GROUP CAME UNDER PRESSURE YESTERDAY LOSING AS MUCH AS 57 OF THEIR VALUE
IN ZURICH TRADING

IN A SEPARATE BUT RELATED ANNOUNCEMENT MOODY'S INVESTORS SERVICE INC OF
NEW YORK SAID IT PLACED ON REVIEW FOR POSSIBLE DOWNGRADE THE DOUBLEA1
RATINGS OF CS HOLDING UNITS CREDIT SUISSE AND CREDIT SUISSE FINANCIAL
PRODUCTS FOR LONGTERM BANK DEPOSITS AS WELL AS THE DOUBLEA1 RATINGS FOR
THE SENIOR LONGTERM EURODEBT GUARANTEED BY BOTH BANKS

OUR POSITIONING IN THE SWISS FINANCIAL MARKETS WAS ALREADY VERY STRONG
MR GUT SAID AT A NEWS CONFERENCE TO DISCUSS THE PROPOSED ACQUISITION TO
MAKE IT EVEN STRONGER WE HAD TO IMPROVE OUR COVER OF THE DOMESTIC RETAIL
BANKING MARKET AND THEREBY SECURE AN EVEN MORE DOMINANT POSITION IN IT

MR GUT ADDED THAT THE STOCK MARKET'S NEGATIVE REACTION WAS BECAUSE MANY
INVESTORS AND ANALYSTS WERE STILL COMING TO GRIPS WITH THE NEW JOINT
VENTURE I AM UTTERLY CONVINCED THAT ONCE THEY HAVE STUDIED THE FINANCIAL
FACTS AND FIGURES  THESE INVESTORS AND ANALYSTS WILL RECOGNIZE THE
BENEFITS OF THE DEAL

CS HOLDING ANNOUNCED LATE TUESDAY THE PROPOSED ACQUISITION VALUED AT 15
BILLION SWISS FRANCS 102 BILLION OF SWITZERLAND'S FIFTH LARGEST BANK IN
THE BIGGEST MERGER IN THE SWISS BANKING SECTOR SINCE THE WORLD WAR II CS
HOLDING ONE OF THE WORLD'S LEADING FINANCIAL SERVICES GROUPS IS THE PARENT
OF CREDIT SUISSE CS FIRST BOSTON GROUP INC LEU HOLDING LTD ELECTROWATT
LTD FIDES TRUST AG AND CS LIFE

IN ZURICH TRADING YESTERDAY CS HOLDING BEARER SHARES CLOSED AT 1980 FRANCS
1346 DOWN 119 FRANCS REGISTERED STOCK LOST EIGHT FRANCS TO END THE DAY
AT 390 FRANCS THE BEARER SHARES ALSO LOST 70 FRANCS ON TUESDAY

AT THE SAME TIME HOWEVER SWISS VOLKSBANK'S SHARES SOARED ALMOST 53
JUMPING TO 1100 FRANCS FROM 720 FRANCS ON DEC 30 THE LAST DAY SHARES WERE
TRADED BEFORE THEIR SUSPENSION

FEARS OF INSIDER TRADING PROMPTED VOLKSBANK TO SUSPEND TRADING PENDING THE
ANNOUNCEMENT VOLKSBANK'S SHARES ROSE UNEXPECTEDLY AT THE END OF LAST YEAR
SWISS AUTHORITIES HAVE YET TO DECIDE IF THERE WILL BE AN INSIDERTRADING
INVESTIGATION

SWISS BANK CORP ANALYST LESLEY VON SCHULTHESS SAID THAT COMPARING TOTAL
ASSETS OF SWITZERLAND'S LEADING BANKING GROUPS A CS HOLDING TAKEOVER OF
VOLKSBANK WOULD PROPEL THE GROUP TO THE NO 1 POSITION IN SWISS BANKING
JUDGED ON ENDYEAR 1991 COMBINED ASSETS MS SCHULTHESS SAID CS HOLDING'S
BALANCE SHEET TOTAL WOULD STAND AT 267 BILLION SWISS FRANCS COMPARED WITH
2493 BILLION FRANCS FOR UNION BANK OF SWITZERLAND AND 2068 BILLION FRANCS
FOR SWISS BANK CORP

A SHARE EXCHANGE IS PROPOSED ENVISAGING THAT THREE CS HOLDING REGISTERED
SHARES WITH A NOMINAL VALUE OF 100 FRANCS WILL BE OFFERED FOR ONE VOLKSBANK
SHARE OR 10 PARTICIPATION CERTIFICATES VOLKSBANK SHAREHOLDERS WILL RECEIVE
ABOUT 1200 FRANCS FOR SHARES THAT WERE TRADING AT 720 FRANCS BEFORE THE
ANNOUNCEMENT

UNDER THE PROPOSED DEAL THE MINIMUM A VOLKSBANK SHAREHOLDER WILL RECEIVE IS
1100 FRANCS IN MARCH A VOLKSBANK GENERAL MEETING MUST APPROVE
TRANSFORMING THE BANK'S STRUCTURE FROM A COOPERATIVE TO A PUBLIC LIMITED
COMPANY BEFORE THE DEAL CAN GO THROUGH THE TRANSACTION IS ALSO DEPENDENT ON
NO OBSTACLES ARISING FROM CS HOLDING'S EXAMINATION OF SWISS VOLKSBANK'S
BOOKS CS HOLDING SAID

IN A SEPARATE ANNOUNCEMENT VOLKSBANK SAID ITS CHAIRMAN WALTER RUEEGG WILL
RESIGN AT THE BANK'S ANNUAL MEETING 9301070016 930107 POLITICS & POLICY
 WORLD BANK'S SUMMERS LIKELY TO GET TREASURY POST

WASHINGTON LAURENCE SUMMERS THE CHIEF ECONOMIST OF THE WORLD BANK AND AN
UNSUCCESSFUL CONTENDER TO HEAD THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS
IS EXPECTED TO BE NAMED AN UNDERSECRETARY OF THE TREASURY

MR SUMMERS 38 YEARS OLD IS EXPECTED TO OVERSEE INTERNATIONAL ECONOMIC
ISSUES AS UNDERSECRETARY DAVID MULFORD DID IN THE BUSH ADMINISTRATION

MR SUMMERS IS CURRENTLY ON LEAVE FROM HARVARD UNIVERSITY WHERE HE WAS THE
YOUNGEST TENURED PROFESSOR IN THE HISTORY OF THE ECONOMICS DEPARTMENT AT
THE WORLD BANK HE ANTAGONIZED ENVIRONMENTALISTS WITH A SARCASTIC MEMO
ASKING WHETHER THE BANK SHOULD ENCOURAGE THE MIGRATION OF DIRTY INDUSTRIES
TO THE THIRD WORLD AFTER THE MEMO WAS LEAKED HE SAID IN ANOTHER MEMO THAT
THE COMMENTS SHOULD BE READ IN THEIR ORIGINAL HIGHLY IRONIC CONTEXT

THAT LED VICE PRESIDENTELECT ALBERT GORE TO BLOCK HIM FROM THE CHAIRMANSHIP
OF THE COUNCIL MR SUMMERS HAS BEEN WORKING ON FISCAL POLICY FOR THE
CLINTON TRANSITION

IN OTHER PERSONNEL MATTERS BUDGET DIRECTORDESIGNATE LEON PANETTA THE
FORMER CHAIRMAN OF THE HOUSE BUDGET COMMITTEE IS SAID TO BE CONSIDERING
BRINGING SEVERAL HOUSE STAFFERS TO HIS NEW JOB THEY INCLUDE JOHN ANGELL
CURRENTLY THE COMMITTEE'S STAFF DIRECTOR

WENDELL PRIMUS AN INFLUENTIAL AIDE TO CHAIRMAN DAN ROSTENKOWSKI OF THE
HOUSE WAYS AND MEANS COMMITTEE IS THE LEADING CANDIDATE FOR ASSOCIATE
BUDGET DIRECTOR OVERSEEING HEALTH AND OTHER SOCIAL PROGRAMS MR PRIMUS HAS
LONG SUPPLIED ECONOMIC AND BUDGET ANALYSIS TO DEMOCRATS ISABEL SAWHILL OF
THE URBAN INSTITUTE AND ROBERT GREENSTEIN OF THE CENTER FOR BUDGET AND
POLICY PRIORITIES ARE ALSO CANDIDATES 9301070015 930107 TECHNOLOGY 
NYNEX TAPS FUJITSU TO SUPPLY ADVANCED MULTIMEDIA SWITCHES

WHITE PLAINS NY NYNEX CORP TAPPED FUJITSU LTD TO PROVIDE TELEPHONE
SWITCHING SYSTEMS DESIGNED TO ROUTE FULLMOTION VIDEO PICTURES AND MOUNTAINS
OF DATA THROUGH THE TELEPHONE NETWORK AS EASILY AS TODAY'S SWITCHES HANDLE
ORDINARY CONVERSATIONS

TERMS WEREN'T DISCLOSED THE ANNOUNCEMENT MARKS THE FIRST TIME A REGIONAL
BELL COMPANY HAS AGREED TO BUY SWITCHES USING THE NEW TECHNOLOGY KNOWN AS
ASYNCHRONOUS TRANSFER MODE OR ATM

NYNEX'S NEW YORK TELEPHONE AND NEW ENGLAND TELEPHONE UNITS WILL CONDUCT
TESTS THIS SPRING AND EXPECT TO BEGIN INSTALLING FUJITSU FETEX150 SWITCHES
IN THE SECOND HALF OF THIS YEAR IN ADDITION THE WHITE PLAINS NY
REGIONAL BELL COMPANY SAID IT WILL USE THE FETEX150 SYSTEM TO TEST A NEW
NETWORK MANAGEMENT SYSTEM DEVELOPED AT ITS SCIENCE & TECHNOLOGY CENTER

BILL BJORKMAN A NYNEX OFFICIAL WHO HAS BEEN INVOLVED IN PLANNING A
HIGHCAPACITY BROADBAND NETWORK SAID THAT BY THE END OF THIS YEAR OR EARLY
IN 1994 THE PHONE COMPANIES WILL BEGIN USING THE FUJITSU SYSTEM TO PROVIDE
HIGHSPEED DATA SERVICES TO BIG BUSINESS CUSTOMERS EVENTUALLY THE NEW
SWITCHES WILL HANDLE MULTIMEDIA SERVICES THAT INVOLVE THE TRANSMISSION OF
VOICE TEXT IMAGES AND VIDEO INFORMATION

THE AGREEMENT SPOTLIGHTS THE REENTRY BY JAPANESE SWITCH MAKERS INTO THE
54 BILLION US MARKET FOR THE BIG COMPUTERS THAT ROUTE CALLS THROUGH THE
PUBLIC TELEPHONE NETWORKS FOR YEARS THE MARKET HAS BEEN DOMINATED BY
AMERICAN TELEPHONE & TELEGRAPH CO AND CANADA'S NORTHERN TELECOM LTD BUT
WITH NEW DEMANDS FOR HIGHSPEED DIGITAL SWITCHING SYSTEMS THE JAPANESE
MANUFACTURERS HAVE FOUND AN OPENING LATER THIS DECADE PHONE COMPANIES ARE
EXPECTED TO BEGIN RETIRING TODAY'S DIGITAL SWITCHES AND REPLACING THEM WITH
ATM EQUIPMENT 9301070014 930107 MARKETING & MEDIA LIBERTY WILL MERGE 
ITS SPORTS NETWORK WITH RIVAL CHANNEL  BY MARK ROBICHAUX STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK LIBERTY MEDIA CORP ANNOUNCED IT WOULD MERGE ITS PRIME NETWORK
WITH ARCHRIVAL SPORTSCHANNEL AMERICA JUST ONE DAY AFTER IT TOOK CONTROL OF
THE PRIME OUTLETS

THE DEAL TO MERGE THE TWO LARGEST OPERATORS OF REGIONAL SPORTS NETWORKS CAPS
MORE THAN TWO YEARS OF SPORADIC NEGOTIATIONS AND FOLLOWS LIBERTY'S
ANNOUNCEMENT TUESDAY THAT IT HAD BOUGHT OUT ITS LARGEST PARTNER IN PRIME
CABLE PIONEER BILL DANIELS TO TAKE FULL CONTROL OF THE COMPANY THE
TRANSACTION WAS EFFECTED THROUGH THE REDEMPTION OF MR DANIELS'S STAKE BY
THE PARTNERSHIP LIBERTY NOW CONTROLS

WITH MR DANIELS GONE LIBERTY CAN NOW PURSUE PLANS TO BUILD A SPORTS
NETWORK VENTURE RIVALING CABLE GIANT ESPN 80OWNED BY CAPITAL CITIES/ABC
INC BUT THE NEW VENTURE DUBBED PRIME SPORTSCHANNEL NETWORKS HAS A LONG
WAY TO GO BEFORE IT CAN POSE A REAL CHALLENGE TO ESPN

THE MERGED REGIONAL SPORTS CHANNELS WILL HAVE A COMBINED REACH OF 41 MILLION
CABLE HOUSEHOLDS ALMOST A THIRD LESS THAN ESPN'S REACH OF 60 MILLION IN
ADDITION THE NEW VENTURE WILL START OUT OPERATING AS TWO SEPARATE NATIONAL
SPORTS SERVICES AND KEEP THEIR OLD MONIKERS AND NEITHER NETWORK HAS
TOPNOTCH NATIONAL PROFESSIONAL SPORTS CONTRACTS

INSTEAD THE REGIONAL SPORTS CHANNELS HAVE A VARIETY OF LOCALTEAM CONTRACTS
IN PROFESSIONAL BASEBALL BASKETBALL AND HOCKEY AS WELL AS COLLEGE SPORTS
AND LOWERPROFILE EVENTS SUCH AS GOLF AND BOXING THOSE LOCAL EVENTS ARE
AUGMENTED BY A BACKDROP OF PROGRAMMING PROVIDED BY THE NATIONAL SERVICES
UNDER THE MERGER AGREEMENT PRIME NETWORK WILL AIR LIVE AND TAPED SPORTING
EVENTS AND SPORTSCHANNEL AMERICA WILL FEATURE PRIMARILY BREAKING SPORTS
NEWS AND SOME EVENTS

INDEED ESPN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER STEVE BORNSTEIN SAID
WE SEE THE REGIONAL BUSINESS AS A DIFFERENT BUSINESS THAN OURS

NEVERTHELESS THE NEWLY COMBINED ENTITY WILL HAVE A HOMEFIELD ADVANTAGE IN
THAT IT WILL AIR POPULAR LOCAL GAMES AND EVENTS ALSO THE VENTURE GIVES
ADVERTISERS FOR THE FIRST TIME A NATIONAL SPORTS ONLY ALTERNATIVE TO
ESPN PRESUMABLY AT CHEAPER RATES GIVEN ITS UPSTART STATUS

THE VENTURE WILL BE 50OWNED BY PRIME NETWORK'S PARENT AFFILIATED REGIONAL
COMMUNICATIONS LTD OF WHICH LIBERTY NOW OWNS 77 THE OTHER HALF WILL BE
JOINTLY OWNED BY SPORTSCHANNEL'S TWO EQUAL PARTNERS GENERAL ELECTRIC CO'S
NBC UNIT AND CABLEVISION SYSTEMS CORP'S RAINBOW PROGRAMMING HOLDINGS INC

THE PROPOSED MERGER DOESN'T INVOLVE A DIRECT PAYMENT OF CASH AND STOCK
BECAUSE OF PRIME'S LARGER REACH IT COVERS 26 MILLION CABLE HOMES COMPARED
WITH SPORTSCHANNEL'S 18 MILLION AFFILIATED WILL GET A ONETHIRD STAKE IN
TWO PHILADELPHIA CHANNELS OWNED BY SPORTSCHANNEL 9301070013 930107
BUSINESS BRIEF GTE CORP ACCESS LINES IN THREE STATES ARE OFFERED
FOR SALE OR TRADE

GTE CORP STAMFORD CONN SAID ITS GTE TELEPHONE OPERATIONS IS PUTTING UP
FOR SALE OR TRADE ITS 20600 ACCESS LINES IN KANSAS NORTH DAKOTA AND SOUTH
DAKOTA

THE EXPECTED SALE VALUE WASN'T DISCLOSED THE COMPANY SAID ITS MOVE WAS PART
OF A RECENTLY ANNOUNCED PLAN TO TRADE OR SELL A SMALL PERCENTAGE OF LOCAL
EXCHANGE PROPERTIES IN MARKETS THAT MAY BE OF GREATER LONGTERM STRATEGIC
VALUE TO OTHER TELEPHONE SERVICE PROVIDERS

GTE A LOCAL AND LONGDISTANCE TELECOMMUNICATIONS COMPANY SERVES 36
EXCHANGES IN THE THREE STATES AND HAS A TOTAL OF 40 EMPLOYEES IN THESE
STATES 9301070012 930107 INTERNATIONAL CITIC PACIFIC PLANS TO ISSUE
SHARES FOR ACQUISITIONS  BY KATHY CHEN STAFF REPORTER OF THE
WALL STREET JOURNAL

HONG KONG IN A LONGANTICIPATED MOVE BEIJINGBACKED CITIC PACIFIC LTD
PLANS TO PLACE AS MUCH AS 73 BILLION HONG KONG DOLLARS US9428 MILLION
IN NEW SHARES TO FINANCE THE ACQUISITION OF SEVERAL ASSETS FROM ITS PARENT
COMPANY INCLUDING A STAKE IN HONG KONG'S TELECOMMUNICATIONS MONOPOLY

IT IS EXPECTED THAT AS MANY AS 560 MILLION SHARES WOULD BE SOLD AT HK13
EACH ABOUT 320 MILLION SHARES WOULD GO TO PARENT CHINA INTERNATIONAL TRUST
& INVESTMENT HONG KONG HOLDINGS LTD WITH THE REST GOING TO KERRY TRADING
CO WHICH IS OWNED BY MALAYSIA'S KUOK FAMILY AND THE PUBLIC

CITIC PACIFIC THE 49OWNED LISTED VEHICLE OF CITIC HONG KONG A UNIT OF
CHINA'S STATEOWNED INVESTMENT ARM DECLINED TO COMMENT BUT IS EXPECTED TO
ISSUE A STATEMENT TODAY

SOME HONG KONG ANALYSTS EXPRESSED DISAPPOINTMENT OVER THE PLAN SAYING THE
HONG KONG TELECOMMUNICATIONS LTD STAKE WOULD DILUTE CITIC PACIFIC'S
EARNINGS WHILE HONG KONG TELECOM IS A QUALITY ASSET IT ISN'T LIKELY TO
GENERATE THE SPECTACULAR GROWTH OF SAY HONG KONG DRAGON AIRLINES OF WHICH
CITIC PACIFIC HOLDS 3831

CITIC PACIFIC IS EXPECTED TO TAKE A 12 STAKE IN HONG KONG TELECOM AT
HK780 A SHARE A 20 DISCOUNT TO ITS CLOSING PRICE WEDNESDAY IT WOULD
ALSO PURCHASE CITIC HONG KONG'S 50 STAKES IN TWO CHINESE POWER PLANTS IN
JIANGSU PROVINCE AND IN ZHENGZHOU HENAN PROVINCE FROM CITIC HONG KONG

BESIDES THE NEW ISSUE WHICH IS BEING UNDERWRITTEN IN PART BY PEREGRINE
CAPITAL LTD CITIC PACIFIC IS EXPECTED TO TAKE OUT A LOAN OF HK4 BILLION
TO HK5 BILLION TO HELP FINANCE THE ACQUISITIONS

TRADING IN CITIC PACIFIC WAS SUSPENDED IN HONG KONG WEDNESDAY BUT
SPECULATION OVER THE MOVE HAD CAUSED PRICES TO DROP FROM AN INTRADAY HIGH OF
HK1390 TO CLOSE AT HK1350 TUESDAY 9301070011 930107 WHO'S NEWS 
FIDELITY INVESTMENT'S GROWTH INCOME FUND MANAGER LEAVES FIRM

BOSTON FIDELITY INVESTMENTS SAID THE MANAGER OF ITS 48 BILLION GROWTH
AND INCOME FUND THE MUTUAL FUND COMPANY'S FOURTH LARGEST STOCK FUND 
HAS LEFT THE FIRM TO JOIN ODYSSEY PARTNERS A NEW YORK INVESTMENT BANKING
CONCERN

THE FUND MANAGER ANDREW MIDLER POSTED A 43 RETURN IN HIS SEVEN MONTHS AS
THE GROWTH AND INCOME FUND MANAGER FROM APRIL TO NOVEMBER OF LAST YEAR HE
HAS BEEN SUCCEEDED BY STEVEN KAYE 33 YEARS OLD FORMERLY MANAGER OF
FIDELITY'S 565 MILLION BLUE CHIP GROWTH FUND FILLING MR KAYE'S JOB
MANAGING THE BLUE CHIP GROWTH FUND IS MICHAEL GORDON 28 WHO UNTIL AUGUST
WAS MANAGER OF THE SELECT BIOTECHNOLOGY FUND

FIDELITY WHICH MANAGES 192 BILLION IN 193 MUTUAL FUNDS ALSO ANNOUNCED
THAT JAMES LYLE MANAGER OF THE 780 MILLION OVERSEAS FUND HAS LEFT TO
BECOME A MANAGING DIRECTOR OF TIGER MANAGEMENT CORP A NEW YORK INVESTMENT
FIRM

THE OVERSEAS FUND POSTED A LOSS OF 1143 IN 1992 UNDER MR LYLE'S
MANAGEMENT HE HAS BEEN SUCCEEDED BY JOHN HICKLING 33 WHO HAD BEEN
MANAGING THE INTERNATIONAL GROWTH AND INCOME FUND 9301070010 930107
COMMODITIES WORLD OIL PRICES DECLINE AS AMPLE SUPPLIES ACCOMPANY WARM
NORTHEASTERN WINTER SEASON  BY CALEB SOLOMON STAFF REPORTER OF THE
WALL STREET JOURNAL

HOUSTON WORLD OIL PRICES FELL AMID CONTINUED AMPLE SUPPLIES OF CRUDE AND
PETROLEUM PRODUCTS IN THE NORMALLY HIGHDEMAND WINTER SEASON

HEATING OIL AND GASOLINE PRICES ALSO DECLINED FOLLOWING A BEARISH INVENTORY
REPORT RELEASED TUESDAY BY THE AMERICAN PETROLEUM INSTITUTE THE API SAID
THAT INVENTORIES OF DISTILLATES ROSE BY NEARLY 24 MILLION BARRELS IN THE
WEEK ENDED JAN 1 AND GASOLINE STOCKS INCREASED BY NEARLY 18 MILLION
BARRELS CRUDE OIL INVENTORIES FELL BY 81000 BARRELS A SMALLER DECLINE
THAN EXPECTED BY MANY MARKET PARTICIPANTS

WILLIAM RANDOL OIL ANALYST AT SALOMON BROTHERS INC IN NEW YORK SAID THAT
MARKET FUNDAMENTALS ARE ALL BEARISH DEMAND IS WEAK AND THE WARM WEATHER IN
THE NORTHEAST HASN'T HELPED HE SAID

BEYOND THAT MR RANDOL SAID WORLD ECONOMIES REMAIN SLUGGISH AND OPEC
CONTINUES TO PRODUCE MORE OIL THAN THE MARKET REQUIRES HE SAID THE KEY
CULPRITS WITHIN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE SAUDI
ARABIA AND IRAN MR RANDOL EXPECTS THE US PRICE OF LIGHT SWEET CRUDE
COULD TOUCH 18 A BARREL BEFORE OPEC MEETS IN FEBRUARY

ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY LIGHT SWEET CRUDE FOR
DELIVERY IN FEBRUARY FELL 22 CENTS TO 1904 A BARREL TRADING WAS LIGHT AND
THE CONTRACT MOVED WITHIN A NARROW RANGE OF 1892 A BARREL TO 1909 ON
LONDON'S INTERNATIONAL PETROLEUM EXCHANGE NORTH SEA BRENT CRUDE FUTURES
DECLINED BETWEEN 12 CENTS A BARREL AND 22 CENTS

TRADERS SAID THE MOUNTING TENSIONS BETWEEN IRAQ AND THE US PROVIDED SOME
SUPPORT TO PRICES ALTHOUGH TRADERS MOSTLY IGNORED THIS DEVELOPMENT BECAUSE
IT DOESN'T APPEAR TO CHANGE THE STATUS QUO OF THE WORLD'S OIL SUPPLY IRAQ
CURRENTLY CAN'T SELL OIL AND ISN'T LIKELY TO EVEN IF THE US AND ITS
ALLIES DECIDE AGAINST TAKING HARSHER ACTIONS

NATURAL GAS FUTURES FINISHED LOWER ON THE NEW YORK MERC IN LIGHT TRADING
HURT BY UNSEASONABLY WARM TEMPERATURES IN MUCH OF THE NORTHEAST NATURAL GAS
FOR FEBRUARY DELIVERY FELL TWO CENTS TO 158 A MILLION BRITISH THERMAL
UNITS ROUGHLY EQUIVALENT TO A THOUSAND CUBIC FEET

IN OTHER COMMODITY MARKETS YESTERDAY

PRECIOUS METALS GOLD FUTURES PRICES FIRMED FOR A SECOND CONSECUTIVE DAY
FURTHER RECOUPING SOME OF THE SHARP DECLINES RECORDED MONDAY WHEN FUTURES
SET A SEVENYEAR LOW THE PRICE OF THE ACTIVELY TRADED FEBRUARY FUTURES
CONTRACT SETTLED 110 HIGHER AT 33010 AN OUNCE UP 170 FROM MONDAY'S
CLOSE OF 32840

DESPITE THE FIRMER TONE ANALYSTS AND TRADERS SAID SUPPORT FOR GOLD WAS WEAK
AND THAT THE MARKET WILL CONTINUE TO TRADE LOWER A STRONGER DOLLAR WEAK
OIL PRICES AND SLOW ECONOMIC GROWTH IN EUROPE AND JAPAN ARE UNDERMINING
GOLD A TRADITIONAL HEDGE AGAINST INFLATION

I THINK WE'LL SEE A BUYER'S BOYCOTT OF GOLD FOR THE FORESEEABLE FUTURE
SAID BERNARD SAVAIKO A SENIOR COMMODITIES ANALYST WITH PAINEWEBBER INC

A DEFLATIONARY ENVIRONMENT HE SAID WILL CONTINUE TO PUSH GOLD TO LOWER
LEVELS I SEE THE NEXT IMMEDIATE SUPPORT LEVEL FOR THE FEBRUARY CONTRACT AT
328325 AN OUNCE OVER THE NEXT TWO MONTHS MR SAVAIKO SAID GOLD
FUTURES PRICES COULD TUMBLE TO AROUND 320

GOLD'S FIRMER TONE ON TUESDAY AND YESTERDAY ANALYSTS SAID WAS LARGELY THE
RESULT OF BARGAIN HUNTING A CERTAIN DEGREE OF BULLISHNESS ON THE WHITE
METALSSILVER PLATINUM AND PALLADIUMALSO LENT SOME SUPPORT TO GOLD

MR SAVAIKO SAID THAT WHEN SILVER PLATINUM AND PALLADIUM PRICES SHOWED
RELATIVE STRENGTH INVESTORS DID NOT WANT TO BET TOO STRONGLY AGAINST GOLD

FUTURES PRICES OF PLATINUM AND PALLADIUM HAVE BEEN BOLSTERED IN RECENT DAYS
BY REPORTS OF SUPPLY DISRUPTIONS IN THE FORMER SOVIET UNION

GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS ROSE AMID REPORTS OF
RISING INTEREST AMONG SOME ASIAN NATIONS ABOUT BUYING US SOYBEANS IN
TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JANUARY
DELIVERY SETTLED AT 571 A BUSHEL UP 575 CENTS PRICES WERE ALSO
SUPPORTED BY REPORTS THAT A LARGE GRAIN MERCHANDISER IS TAKING PHYSICAL
POSSESSION OF SOYBEANS STORED IN TOLEDO OHIO ELEVATORS THERE ARE USED BY
TRADERS TO FULFILL THEIR DELIVERY OBLIGATIONS ON FUTURES CONTRACTS HANDLED
AT THE CHICAGO BOARD OF TRADE SUCH A MOVE IS UNUSUAL THIS TIME OF YEAR
BECAUSE FIRMS USUALLY TRY TO TAKE POSSESSION OF SOYBEANS THIS WAY WHEN
SUPPLIES ARE TIGHT IN THE COUNTRYSIDE SOYBEANS ARE PLENTIFUL NOW BECAUSE
THE CROP WAS HARVESTED A FEW MONTHS AGO SOME TRADERS ARE SPECULATING THAT
THE MOVE SIGNALS US FARMERS ARE RELUCTANT TO SELL THEIR RECENTLYHARVESTED
CROP AT PREVAILING PRICES WHEAT PRICES SETTLED MIXED AMID CONTINUING
CONCERN ABOUT THE SUPPLY OF MILLINGQUALITY WHEAT IN THE SOUTHERN
HEMISPHERE TRADERS ARE CONCERNED THAT HIGHERTHANNORMAL PRECIPITATION IS
DAMAGING THE QUALITY OF THE AUSTRALIAN CROP THE WHEAT CROP IN ARGENTINA IS
ALSO BEHIND SCHEDULE

COFFEE COFFEE FUTURES PRICES CONTINUED THEIR SKID AT NEW YORK'S COFFEE
SUGAR AND COCOA EXCHANGE WITH THE MARCH CONTRACT PRICE DECLINING 15 CENTS
TO 7030 CENTS A POUND ANALYSTS SAID YESTERDAY'S SESSION FEATURED WHAT IS
LIKELY THE LAST OF THE LIQUIDATION OF LONG POSITIONS OR WAGERS THAT
COFFEE PRICES WILL RISE BY COMMODITY FUNDS THAT MANAGE MONEY FOR
INVESTORS THESE FUNDS WHICH INVEST ON THE BASIS OF MATHEMATICAL FORMULAS
RATHER THAN FUNDAMENTAL FACTORS AFFECTING SUPPLY AND DEMAND HAD BEEN
HOLDING LONG POSITIONS BECAUSE OF THE BULL MARKET IN COFFEE THAT FALTERED
TWO WEEKS AGO COFFEE FUNDAMENTALS SUCH AS THE COFFEE POLICY OF THE NEW
GOVERNMENT IN BRAZIL AND THE POSSIBILITY OF AN INTERNATIONAL COFFEE
AGREEMENT ARE SO UNCERTAIN THAT THE MARKET IS NOW REACTING MAINLY TO THE
BEHAVIOR OF BIG INVESTORS ANALYSTS SAID 9301070009 930107 AUTOS FORD
TAURUS DETHRONES HONDA ACCORD AS TOPSELLING CAR IN US DURING 1992 
 BY JACQUELINE MITCHELL AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL
STREET JOURNAL

DETROIT FORD MOTOR CO'S TAURUS OUSTED HONDA MOTOR CO'S ACCORD AS THE
BESTSELLING CAR IN THE US LAST YEAR THE FIRST TIME SINCE 1988 THAT A
US CAR HAS REIGNED SUPREME IN ITS HOME MARKET

FORD'S VICTORY CAME ON RECORD SALES OF 65324 TAURUSES IN DECEMBER THANKS
TO THE FORD BLITZ NORTH AMERICANBUILT CARS SOLD AT A SEASONALLY ADJUSTED
ANNUAL SALES PACE OF 71 MILLION VEHICLES IN THE DEC 2131 PERIOD WELL
ABOVE THE DOMESTIC SALES PACE OF 66 MILLION FOR ALL OF DECEMBER THE SALES
RATE IN LATE DECEMBER IS TYPICALLY HIGHER BECAUSE AUTO MAKERS OFFER YEAREND
DISCOUNTS TO CLEAR OUT VEHICLES

THE YEAREND SALES RESULTS ALSO HAD THESE HIGHLIGHTS

 JAPANESE AUTO MAKERS SAW THEIR COMBINED SHARE OF THE US CAR AND TRUCK
MARKET SLIDE TO 24 FROM 26 A YEAR AGO

 GENERAL MOTORS CORP'S SHARE OF THE US CAR MARKET IN DECEMBER DROPPED
TO ANOTHER POSTDEPRESSION LOW OF 308 FOR ALL OF 1992 GM'S SHARE OF THE
TOTAL CAR AND TRUCK MARKET FELL TO 342 FROM 351 IN 1991 A TOP GM
OFFICIAL SAID THE NO 1 AUTO MAKER'S GOAL IS TO ACHIEVE STABLE MARKET SHARE
IN 1993

 OVERALL US CAR AND TRUCK SALES ROSE 4 TO 129 MILLION VEHICLES IN 1992
FROM 123 MILLION A YEAR EARLIER THE SECONDWORST YEAR FOR US AUTO SALES
SINCE 1983 QUESTION MARK FOR 1993 THE BIG QUESTION NOW IS WHETHER 1993 WILL
MARK THE BEGINNING OF A SUSTAINED RECOVERY AFTER SEVERAL FALSE STARTS IN
RECENT MONTHS

CLEARLY THERE'S MORE UPSIDE POTENTIAL IN 1993 THAN THERE WAS IN 1992 SAID
J MICHAEL LOSH GROUP VICE PRESIDENT IN CHARGE OF GM'S NORTH AMERICAN
MARKETING OPERATIONS A RECOVERING ECONOMY AND DECLINING CONSUMER DEBT LOADS
ALL POINT TO A REBOUND IN US VEHICLE SALES HE SAID

HOWEVER GM AND MOST OTHER AUTO MAKERS ARE MAINTAINING CONSERVATIVE SALES
FORECASTS GM SEES 1993 SALES RISING TO BETWEEN 135 MILLION AND 14 MILLION
VEHICLES MARYANN KELLER AUTO ANALYST AT FURMAN SELZ INC SAID COMBINED
CAR AND TRUCK SALES COULD REACH 137 MILLION

IF THOSE PREDICTIONS HOLD TRUE IT WILL MEAN ANOTHER FAR FROM ROBUST YEAR
PARTICULARLY BY THE STANDARDS OF THE MID1980S WHEN SALES AVERAGED ABOUT 15
MILLION VEHICLES A YEAR AMONG THE UNCERTAINTIES A POSSIBLE INCREASE IN
GASOLINE TAXES THAT COULD DRIVE CONSUMERS AWAY FROM THE LARGER MORE
POWERFUL VEHICLES THEY HAVE FAVORED IN RECENT YEARS

THE SLUGGISH RECOVERY IS ONE REASON WHY DETROIT'S BIG THREE ALL WITH FRESH
FINANCIAL WOUNDS FROM THE RECENT SLUMP ARE LOBBYING FOR HELP FROM
WASHINGTON TOP GM FORD AND CHRYSLER CORP EXECUTIVES AND UNITED AUTO
WORKERS UNION PRESIDENT OWEN BIEBER MET WITH PRESIDENTELECT BILL CLINTON TO
DISCUSS ISSUES RELATED TO TRADE AND FEDERAL REGULATIONS

BUT EVEN AS THE US AUTO INDUSTRY'S LEADERS OFFERED THE INCOMING PRESIDENT
A SOMBER PICTURE FORD WAS TYING UP TRAFFIC IN DOWNTOWN DETROIT WITH A NOISY
PARADE TO BALLYHOO THE FALL OF THE ACCORD

A PROCESSION OF 100 TAURUSES AND OTHER FORD VEHICLES BEGAN WINDING TOWARD
COBO HALL THE SITE OF THE NORTH AMERICAN INTERNATIONAL AUTO SHOW ABOUT AN
HOUR BEFORE FORD PUBLICLY REPORTED THAT IT SOLD 409751 TAURUSES FOR ALL OF
1992 BEATING THE ACCORD BY 16274 VEHICLES

BUT THE VICTORY WAS COSTLY FOR FORD THE NO 2 AUTO MAKER SHELLED OUT UP TO
2600 FOR EACH TAURUS SOLD THROUGH DISCOUNTS AND CUTRATE LEASE PROGRAMS IT
OFFERED ON ITS MIDSIZED FAMILY CAR FORD TOOK OTHER EXTRAORDINARY MEASURES
TO SELL TAURUSES THE COMPANY SET UP A WAR ROOM IN THE RENAISSANCE CENTER
OFFICE TOWER IN DETROIT WHERE FORD EMPLOYEES WORKED BANKS OF PHONES
EXHORTING DEALERS TO SELL MORE TAURUSES

FORD'S BIGGEST PUSH CAME IN THE DEC 2131 PERIOD WHEN IT SOLD 34013
TAURUSES MORE THAN IT SOLD IN THE TWO PREVIOUS 10DAY PERIODS IN DECEMBER

ROSS H ROBERTS FORD VICE PRESIDENT AND FORD DIVISION GENERAL MANAGER
DEFENDED THE COMPANY'S MARKETING STRATEGY IT WAS A GOOD BUSINESS
DECISION HE SAID MR ROBERTS SAID THE DISCOUNTS AND LEASE PROGRAMS REVVED
UP SALES MOMENTUM FOR OTHER FORD MODELS FORD'S SHARE OF THE CAR MARKET IN
DECEMBER ROSE TO 232 FROM 211 A YEAR EARLIER ITS SHARE OF THE TOTAL CAR
AND TRUCK MARKET ROSE TO 248 FOR THE FULL YEAR FROM 233 IN 1991

FORD MODELS ACCOUNTED FOR FIVE OF THE 10 BESTSELLING VEHICLES IN THE US
TONIGHT FORD PLANS TO START AN ADVERTISING CAMPAIGN TOUTING ITS VICTORY
THE ADS WILL SHOW A LIST WITH THE TAURUS AT THE TOP QUALITY DESIGN AND
SAFETY ARE ALL AT THE TOP OF OUR LIST WHICH IS WHY WE'RE AT THE TOP OF THIS
LIST THE ADS WILL SAY

CHRYSLER MEANWHILE RODE STRONG MINIVAN AND JEEP SALES TO BOOST ITS SHARE
OF THE TOTAL CAR AND TRUCK MARKET TO 133 FOR 1992 UP FROM 122 IN 1991
DESPITE THE LAUNCH OF ITS NEW LH LINE OF SEDANS THIS FALL CHRYSLER STILL
TRAILED HONDA AND TOYOTA MOTOR CORP IN PASSENGER CAR SALES FOR THE YEAR

AS A GROUP JAPANESE AUTO MAKERS HAD A DISAPPOINTING YEAR BUFFETED BY
CURRENCY AND TRADE PRESSURES THEY SAW THEIR SHARE OF THE US CAR MARKET
FALL FOR THE FIRST TIME IN SEVERAL YEARS TO 30 DOWN FROM 31 IN 1991
JAPANESE AUTO MAKERS LOST EVEN MORE GROUND IN THE TRUCK MARKET WHERE
STRONGER BIG THREE PRODUCTS AND HIGH TARIFFS HURT SALES OF JAPANESE LIGHT
TRUCKS

SOME JAPANESE MODELS BUCKED THE DOWNWARD TIDE SALES OF NISSAN MOTOR CO'S
NEW ALTIMA SEDAN BUILT IN TENNESSEE DOUBLED IN DECEMBER COMPARED WITH ITS
PREDECESSOR CAR TOYOTA MOTOR CORP'S CAMRY SEDAN MOST OF WHICH ARE BUILT
IN KENTUCKY ROSE 169 IN DECEMBER FAR OUTPACING THE OVERALL CAR MARKET

GM HAD ITS PROBLEMS ITS TOTAL CAR AND TRUCK SALES HIT 44 MILLION VEHICLES
FOR THE YEAR UP 15 FROM THE PREVIOUS YEAR WHILE THE REST OF THE MARKET
GAINED 4

GM HOWEVER IS HOPEFUL THAT IT WILL STOP ITS SHARE SLIDE IN 1993 MY
OBJECTIVE IS TO HOLD MARKET SHARE STABLE MR LOSH SAID GM HAS LOST SHARE
IN PART BECAUSE IT'S REDUCING SALES TO RENTAL FLEETS BY ABOUT 250000
VEHICLES IN THE 1993 MODEL YEAR BUT MR LOSH SAID SALES TO INDIVIDUAL
CONSUMERS ARE RISING AND THAT THE BRUNT OF THE CUT IN FLEET SALES IS OVER

NOTE THERE WERE 26 SELLING DAYS IN THE MOST RECENT MONTH AND 25 A YEAR
EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES
VOLUME 9301070008 930107 ILLINOIS UTILITY TOLD TO REFUND 600 MILLION
  COMMONWEALTH EDISON CO FACES FINANCIAL CRUNCH APPEAL EXPECTED
TODAY  BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL

CHICAGO COMMONWEALTH EDISON CO WAS ORDERED BY ILLINOIS REGULATORS TO
REFUND ABOUT 600 MILLION AS PART OF AN ELECTRICITY RATE REDUCTION THAT
COULD FURTHER SAP THE FINANCES OF THE NATION'S BIGGEST NUCLEAR UTILITY

COMMONWEALTH'S COMMONSTOCK DIVIDEND ALREADY SLASHED 47 IN SEPTEMBER
COULD COME UNDER PRESSURE AGAIN BECAUSE OF THE ILLINOIS COMMERCE
COMMISSION'S ORDER AND BORROWING MONEY COULD BECOME MORE COSTLY AND
DIFFICULT FOR THE COMPANY

IN ORDERING THE HUGE REFUND COMMISSION MEMBERS EXPRESSED THE HOPE THAT THE
SIXYEAR LEGAL BATTLE OVER ELECTRICITY RATES IN NORTHERN ILLINOIS WOULD END
BUT IT WON'T COMMONWEALTH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER JAMES J
O'CONNOR SAID AT A NEWS CONFERENCE THAT THE UTILITY WOULD FILE AN APPEAL TO
THE ORDER BY THIS MORNING WITH THE ILLINOIS SUPREME COURT AND ASK THE COURT
TO STAY THE REFUND AND RATE CUT PENDING A DECISION ON THE APPEAL

IT'S SIMPLY NOT FAIR MR O'CONNOR SAID WE ARE EXTREMELY DISAPPOINTED

THE COMMISSION ORDER HAD BEEN EXPECTED BY INVESTORS AND OTHERS FOR MONTHS
COMMONWEALTH SHARES ROSE 1125 YESTERDAY AND WERE QUOTED AT 24125 IN LATE
NEW YORK STOCK EXCHANGE TRADING

THE BATTLE CENTERS ON COMMONWEALTH'S FINAL THREE NUCLEAR GENERATING UNITS
AND ON HOW MUCH OF THE UNITS' COST SHOULD BE SHOULDERED BY RATEPAYERS THE
COMMISSION REVERSING MORE FAVORABLE RATE ORDERS IT MADE IN THE PAST THAT
IN TURN WERE THROWN OUT OR ALTERED BY THE ILLINOIS SUPREME COURT 
CONCLUDED THAT THE FINAL UNIT ONE OF TWO AT THE BRAIDWOOD NUCLEAR PLANT
NEAR JOLIET ILL WAS LARGELY UNNEEDED IT COST ABOUT 24 BILLION

COMMONWEALTH CONTENDS THE UNIT IS NEEDED AND THAT THE COMMISSION DIDN'T
FAIRLY BALANCE THE INTERESTS OF ELECTRICITY CUSTOMERS AND SHAREHOLDERS

THE ORDER REDUCES RATES BY 331 MILLION A YEAR RETROACTIVE TO MARCH 1991
COMMONWEALTH COULD FACE ADDITIONAL REFUNDS BECAUSE OF COAL COSTS THAT
CONSUMER GROUPS HAVE ARGUED WERE TOO HIGH IN RECENT YEARS

MR O'CONNOR WOULDN'T PREDICT WHAT ACTION COMMONWEALTH'S BOARD MIGHT TAKE ON
THE DIVIDEND WHICH WAS CUT TO A QUARTERLY 40 CENTS A SHARE LAST SEPTEMBER
FROM 75 CENTS THE COMPANY HAS ACKNOWLEDGED THAT EVEN AT THAT LOWER RATE
THE DIVIDEND MIGHT NOT BE SUSTAINABLE IF RATE DECISIONS GO AGAINST THE
UTILITY COMMONWEALTH HAS ALSO CUT 1500 JOBS AND DEFERRED 500 MILLION IN
CAPITAL SPENDING

THE REGULATORY SETBACKS HAVE LED CREDIT RATING AGENCIES TO REPEATEDLY
DOWNGRADE COMMONWEALTH'S DEBT WHICH HAS RAISED ITS BORROWING COSTS AND MADE
SOME BANKS AND INSTITUTIONS RELUCTANT TO CONTINUE LENDING 9301070007
930107 ELCOR SEES INCREASE IN OPERATIONS PROFIT IN 2 FISCAL QUARTERS

DALLAS ELCOR CORP SAID IT EXPECTS TO POST EARNINGS OF AT LEAST 35 CENTS
A SHARE FROM CONTINUING OPERATIONS IN EACH OF ITS 1993 FISCAL SECOND AND
THIRD QUARTERS NEARLY DOUBLE THE LEVEL IT SAID ANALYSTS HAD EXPECTED

THE NEWS PUSHED THE COMPANY'S STOCK UP 16 IN COMPOSITE TRADING ON THE NEW
YORK STOCK EXCHANGE YESTERDAY ELCOR SHARES CLOSED AT 20625 UP 2875

THE ROOFING PRODUCTS MAKER SAID ANALYSTS HAD EXPECTED ITS EARNINGS FROM
CONTINUING OPERATIONS FOR THE SECOND QUARTER ENDED DEC 31 AND THE THIRD
QUARTER TO TOTAL 30 TO 41 CENTS A SHARE ELCOR SAID STRONG DEMAND AND
IMPROVED PRICES FOR ITS PRODUCTS AND LOWER INTEREST EXPENSES UNDER A NEW
LOAN AGREEMENT WILL CONTRIBUTE TO THE HIGHER EARNINGS

THE COMPANY REPORTED EARNINGS FROM CONTINUING OPERATIONS OF 389000 OR
FIVE CENTS A SHARE FOR THE SECOND QUARTER A YEAR EARLIER AFTER A CHARGE OF
199000 OR THREE CENTS A SHARE FOR A TAXLOSS CARRYFORWARD FOR A NET
LOSS OF 588000 OR EIGHT CENTS A SHARE ON SALES OF 332 MILLION

IN THE THIRD QUARTER LAST YEAR THE COMPANY REPORTED A LOSS FROM CONTINUING
OPERATIONS OF 363000 OR FIVE CENTS A SHARE AFTER A CHARGE OF 255000
OR THREE CENTS A SHARE FOR A TAXLOSS CARRYFORWARD FOR A NET LOSS OF
617000 OR EIGHT CENTS A SHARE ON SALES OF 333 MILLION

ELCOR ANNOUNCED ITS IMPROVED ESTIMATES A DAY AFTER AN INVESTMENT GROUP LED
BY MONEY MANAGER MARIO GABELLI'S GAMCO INVESTORS INC REDUCED ITS STAKE IN
THE COMPANY TO 775 FROM 878 IN A FILING WITH THE SECURITIES AND
EXCHANGE COMMISSION THE GROUP SAID IT RECENTLY CUT ITS STAKE TO 575600
SHARES FROM 652100 SHARES SELLING 76500 SHARES OF ELCOR AT PRICES RANGING
FROM 16375 TO 190845 A SHARE 9301070006 930107 BUSINESS BRIEF 
BENEFICIAL CORP COMPANY SAYS IT WILL CLOSE MORTGAGE UNIT SEEK BUYER

BENEFICIAL CORP WILMINGTON DEL SAID IT WILL CLOSE ITS BENEFICIAL
MORTGAGE CORP UNIT AND SEEK A BUYER FOR THE UNPROFITABLE OPERATION

THE NEWARK DEL UNIT WHICH SERVICES A PORTFOLIO OF ABOUT 2 BILLION
NEVER TURNED A PROFIT SINCE IT OPENED IN 1984 ACCORDING TO A COMPANY
SPOKESMAN IN 1991 THE UNIT HAD A LOSS OF 19 MILLION AND FOR 1992 LOSSES
ARE ESTIMATED AT ABOUT 10 MILLION

THE COMPANY SAID IT CONCLUDED THAT THE UNIT COULDN'T BECOME LARGE ENOUGH TO
COMPETE IN AN INDUSTRY DRIVEN BY ECONOMIES OF SCALE ANY GAIN FROM THE
SALE OF THE UNIT PROBABLY WOULD BE OFFSET BY CHARGES RELATED TO THE CLOSING
OF THE OPERATION

BENEFICIAL SAID IT WILL TERMINATE 127 EMPLOYEES IN NEWARK DEL AND 12
WORKERS IN CAMPBELL CALIF BUT WILL CONSIDER THEM FOR POSITIONS AT OTHER
BENEFICIAL UNITS

BENEFICIAL IS A CONSUMER FINANCE BANKING AND INSURANCE COMPANY WITH 11
BILLION IN ASSETS 9301070005 930107 MARKETING & MEDIA ADVERTISING 
MORE FIRMS ARE CHANGING NAMES TO BETTER SUIT THE CHANGING TIMES  
BY KEVIN GOLDMAN

WHAT'S IN A NAME SOMETIMES TOO MUCH SOMETIMES NOT ENOUGH

LAST YEAR THE NUMBER OF PUBLICLY TRADED COMPANIES THAT CHANGED THEIR
CORPORATE MONIKERS JUMPED TO 107 FROM 83 THE PREVIOUS YEAR ACCORDING TO A
STUDY SCHEDULED FOR RELEASE TODAY BY SCHECHTER GROUP A NEW YORK CORPORATE
AND BRANDIDENTITY CONSULTING FIRM

A CORPORATE NAME IS AS IMPORTANT AS A BRAND NAME TO MADISON AVENUE
PARTICULARLY WHEN THE COMPANY LOGO APPEARS IN COMMERCIALS AND PRINT ADS AND
INDUSTRY EXECUTIVES SAY CONSUMERS ARE LOOKING FOR COMPANIES THEY CAN
IDENTIFY WITH THUS FANCY OR STUFFY NAMES ARE DECIDEDLY OUT SO IT
APPEARS ARE NAMES THAT ASSOCIATE A COMPANY TOO CLOSELY WITH A CONTROVERSIAL
PRODUCT SUCH AS TOBACCO OR NAMES THAT GIVE NO CLUE ABOUT A COMPANY'S
BUSINESS

NAMES ARE VITALLY IMPORTANT TO ADVERTISING BECAUSE ENTIRE CAMPAIGNS ARE
SOMETIMES BASED ON CORPORATE NAMES SAYS JOSEPH SMITH CHAIRMAN OF THE NEW
YORK CONSULTING FIRM OXTOBYSMITH

THE WORST NAME CHANGE FOR LAST YEAR SAYS ALVIN SCHECHTER CHAIRMAN OF THE
CONSULTING FIRM THAT BEARS HIS NAME RESULTED FROM THE MERGER BETWEEN
MANUFACTURERS HANOVER CORP AND CHEMICAL BANKING CORP THE MERGED ENTITIES
KEPT THE CHEMICAL NAME BOTH NAMES WERE TERRIBLE HE SAYS CHEMICAL IS AN
UNFRIENDLY TERM AND MANUFACTURERS'S NAME WAS LONG AND AWKWARD

THE COMPANIES FUMBLED A CHANCE TO PROMOTE THE PARTNERSHIP WITH A TOTALLY NEW
NAME IN THE MERGER SAYS MR SCHECHTER

A SPOKESMAN FOR CHEMICAL SAYS THE TWO COMPANIES TRIED SEVERAL COMBINATIONS
OF THE NAMES BUT COULDN'T COME UP WITH ANYTHING THEY LIKED BETTER AN
ENTIRELY NEW NAME WAS NEVER CONSIDERED BECAUSE THROUGH ADVERTISING EACH
NAME HAD STRONG IDENTITY AMONG CONSUMERS FINALLY CHEMICAL WAS RETAINED
BECAUSE IT HAD MORE BRANCHES

OTHER NAME CHANGES REFLECT THE RESTRUCTURING AND FOCUS ON CORE BUSINESSES
THAT MANY PUBLICLY TRADED COMPANIES WENT THROUGH DURING THE RECESSION SAYS
MR SCHECHTER

STILL OTHER COMPANIES CHANGED NAMES THAT NO LONGER SOUNDED POLITICALLY
CORRECT PEPSICO'S KENTUCKY FRIED CHICKEN UNIT ONE OF MR SCHECHTER'S
CLIENTS WORRIED THAT URGING PEOPLE TO EAT ANYTHING FRIED WASN'T THE BEST
MESSAGE TO CONVEY IN THE HEALTHCONSCIOUS 1990S

MR SCHECHTER HATCHED AN IDEA DROP THE NAME ENTIRELY USE THE INITIALS KFC
AND ENLARGE THE IMAGE OF COL SANDERS THE FAST FOOD CHAIN'S ICON IN
ADVERTISING AND ON PACKAGING AND THE JINGLE KENTUCKY FRIED CHICKEN WE DO
CHICKEN RIGHT WAS RERECORDED TO WE ARE KFC WE DO CHICKEN RIGHT

IN SEPTEMBER HORIZON GOLD CORP CHANGED ITS NAME TO HORIZON RESOURCES CORP
THE WORD GOLD HAD LOST ITS LUSTER AMONG INVESTORS BECAUSE OF FALLING
PRICES A SPOKESMAN FOR THE GOLDEN COLO COMPANY SAYS HORIZON MADE THE
SHIFT BECAUSE IT NOW MINES POTASH ALSO

SOME COMPANIES FINALLY DECIDE THAT LESS IS MORE AMERICAN SOUTHWEST MORTGAGE
INVESTMENTS CORP IN TUCSON ARIZ SIMPLIFIED ITS NAME IN JUNE TO ASR
INVESTMENTS CORP SAYING THE ORIGINAL WAS JUST TOO MUCH OF A MOUTHFUL MR
SCHECTER NOTES THAT THE USE OF INITIALS IS ALSO A WAY TO DISGUISE A
COMPANY'S NATURE AND GUARANTEE ANONYMITY

FOR EXAMPLE GULF RESOURCES/CHEMICAL LAST YEAR DEEPSIXED THAT NAME IN FAVOR
OF THE LESS REVEALING GULF USA CORP THE WORD CHEMICAL SAYS MR
SCHECHTER DOESN'T CONVEY AN ENVIRONMENTALLY SOUND MESSAGE

IN YEARS PAST COMPANIES CHANGED THEIR NAMES TO ADAPT TO SOCIAL TRENDS SAYS
MR SCHECHTER UNIVERSAL LEAF TOBACCO IN RICHMOND VA SNUFFED OUT ITS OLD
NAME IN 1990 IN FAVOR OF UNIVERSAL CORP THE SWITCH WAS MADE BECAUSE THE
COMPANY HAD ACQUIRED NONTOBACCO BUSINESSES SAYS A SPOKESMAN THE COMPANY
SHED SOME OF THOSE UNRELATED BUSINESSES RECENTLY BUT SAYS IT WON'T ADOPT
ITS OLD SIGNATURE WE'RE STILL NOT EXCLUSIVELY A TOBACCO COMPANY SAYS THE
SPOKESMAN

OFTEN COMPANIES CHANGE THEIR NAMES TO REFLECT DRAMATIC CHANGES IN THEIR
BUSINESS OR TO FOCUS ATTENTION ON A STAR ASSET IN 1989 FOR EXAMPLE GULF &
WESTERN INC CHANGED ITS NAME TO PARAMOUNT COMMUNICATIONS INC THE ORIGINAL
NAME CAME FROM THE COMPANY'S ORIGINS AS A CONGLOMERATE IN A HODGEPODGE OF
INDUSTRIAL OPERATIONS AFTER IT SHED MOST OF THOSE BUSINESES TO FOCUS ON
ENTERTAINMENT AND PUBLISHING THE COMPANY DECIDED TO ADOPT THE NAME OF ITS
LARGEST BUSINESS PARAMOUNT PICTURES

THE SCHECHTER GROUP ALSO TRACKED WHICH COMPANIES ARE MOST LIKELY TO CHANGE
THEIR NAMES BETWEEN 1987 AND 1991 FOR EXAMPLE 74 FINANCIAL INSTITUTIONS
SWITCHED MONIKERS AND 64 OF THOSE DROPPED THE WORDS SAVINGS AND LOAN
PARTLY REFLECTING THE S&L SCANDALS OF THE LATE 1980S AND PARTLY MIRRORING
THE BLIZZARD OF MERGERS AND ACQUISITIONS

BUT LAST YEAR ONE INSTITUTION ACTUALLY REVERSED THE TREND EXCEL BANCORP
BECAME QUINCY SAVINGS BANK THE CHANGE SAYS A SPOKESMAN OF THE BANK BASED
IN QUINCY MASS REFLECTED A REORGANIZATION OF ITS HOLDING COMPANY QUINCY
SAVINGS BANK HAD BEEN USED SINCE 1845 AND THE COMPANY WANTED TO GO WITH A
NAME LONG FAMILIAR TO DEPOSITORS

TIFFANY & CO NEW YORK MOVED ITS PRESTIGIOUS RETAIL ADVERTISING ACCOUNT
FROM MCCAFFREY & MCCALL NEW YORK AND CONSOLIDATED AN ESTIMATED 20 MILLION
IN WORLDWIDE ADVERTISING WITH MCCANNERICKSON NEW YORK

MCCAFFREY WHICH HAD HANDLED TIFFANY'S ESTIMATED 10 MILLION US ACCOUNT
SINCE 1986 HOLDS ONTO THE SMALL CORPORATE OR BUSINESSTOBUSINESS PORTION
OF THE ACCOUNT EXACT BILLINGS COULDN'T BE DETERMINED THE LOSS IS A TOUGH
BLOW TO THE AGENCY BADLY SHAKEN BY THE LOSS OF THE MERCEDESBENZ ACCOUNT
LAST YEAR

DIANA LYNE TIFFANY'S SENIOR VICE PRESIDENT OF MARKETING SAID TIFFANY
DECIDED TO MOVE THE RETAIL ACCOUNT FROM MCCAFFREY BECAUSE WE THINK WE NEED
A TRULY INTERNATIONAL ADVERTISING AGENCY TO DEAL WITH OUR GROWING
INTERNATIONAL PRESENCE MCCAFFREY HAS OFFICES IN NEW YORK INDIANAPOLIS AND
TORONTO IT DOESN'T HAVE ANY IN EUROPE OR ASIA

MCCANNERICKSON'S JAPAN OPERATIONS MCCANNERICKSON HAKUHODO PREVIOUSLY
HANDLED TIFFANY ADVERTISING IN ASIA AND THE FAR EAST TIFFANY SAID IT PLANS
TO KEEP THE MEDIA PORTION OF ITS ACCOUNT INHOUSE

MOBIL CORP TAPPED MINNEAPOLIS AGENCY FALLON MCELLIGOTT MINNEAPOLIS FOR
ITS HEFTY TRASH BAG ACCOUNT INDUSTRY EXECUTIVES SAID

THE ACCOUNT WAS PREVIOUSLY HANDLED BY WELLS RICH GREENE BDDP NEW YORK THE
AGENCY RESPONSIBLE FOR THE HEFTY HEFTY HEFTY WIMPY WIMPY WIMPY SLOGAN

FALLON A UNIT OF WPP GROUP BEAT OUT THREE OTHER CONTENDERS INCLUDING THE
CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM JORDAN MCGRATH CASE & TAYLOR
NEW YORK AND WEIGHTMAN ADVERTISING PHILADELPHIA MOBIL SPENT 9 MILLION ON
HEFTY ADVERTISING LAST YEAR ACCORDING TO LEADING NATIONAL ADVERTISERS
WHICH TRACKS ADVERTISING A MOBIL SPOKESMAN DECLINED TO COMMENT

MCCAFFREY & MCCALL NEW YORK RETAINED A SMALL PORTION OF THE 10 MILLION
TIFFANY US ADVERTISING ACCOUNT A HEADLINE IN YESTERDAY'S ADVERTISING
COLUMN GAVE THE ERRONEOUS IMPRESSION THAT THE AD AGENCY HAD LOST THE ENTIRE
ACCOUNT 9301070004 930107 ECONOMY AUTO MAKERS ALL SMILES AFTER 
CLINTON MEETING  HOPES RAISED FOR TOUGHER IMPORT RESTRICTIONS 
HELP ON REGULATIONS  BY MICHAEL K FRISBY STAFF REPORTER OF THE
WALL STREET JOURNAL

LITTLE ROCK ARK PRESIDENTELECT CLINTON RAISED THE HOPES OF US AUTO
MAKERS THAT HIS ADMINISTRATION WILL BE TOUGHER ON JAPANESE IMPORTS AND WILL
LISTEN TO THEIR REGULATORY CONCERNS

LEADERS OF THE BIG THREE CAR MAKERS STEERED CLEAR OF SPECIFICS IN DESCRIBING
THEIR NEARLY TWOHOUR MEETING WITH MR CLINTON AND VICE PRESIDENTELECT AL
GORE BUT THEY WERE CLEARLY UPBEAT AT THE PROSPECT THAT MR CLINTON WOULD
GIVE THEM MORE TRADE PROTECTION THAN PRESIDENT BUSH

OWEN BIEBER PRESIDENT OF THE UNITED AUTO WORKERS UNION SAID HE RAISED THE
ISSUE OF THE VOLUNTARY RESTRAINT AGREEMENT WITH JAPAN A MEASURE REQUESTING
THAT THE JAPANESE EXPORT NO MORE THAN 1650000 CARS TO THIS COUNTRY YEARLY
THE US AUTO INDUSTRY WANTS TO SEE THE CAP LOWERED

MR BIEBER DIDN'T DISCLOSE WHETHER THE PRESIDENTELECT SIGNALED THAT HE
WOULD PUSH FOR A LOWER CAP BUT SAID HE WAS PLEASED BY THE DISCUSSION THE
UNION LEADER SAID THE TOPIC WAS CITED DURING A DISCUSSION OF THE WHOLE
TRADE ISSUE AND THE TRADE DEFICIT WITH JAPAN WE CERTAINLY HAD THE
OPPORTUNITY TO COVER THE WATERFRONT AND THE GOVERNOR HAD DEMONSTRATED ONCE
AGAIN TO ME AND EVERYONE ELSE THAT HE HAS A BROAD GRASP OF THESE PROBLEMS
MR BIEBER SAID I THINK HE UNDERSTANDS THEM AND I FEEL VERY GOOD

HAROLD POLING CHAIRMAN OF FORD MOTOR CO SAID HE TOO WAS PLEASED ASKED IF
HE FOUND MR CLINTON MORE COOPERATIVE THAN THE BUSH ADMINISTRATION HE
REPLIED BASED ON THE DISCUSSIONS TODAY I THINK WE WOULD WORK VERY
COOPERATIVELY WITH THE NEW ADMINISTRATION ALSO ATTENDING THE MEETING WERE
CHRYSLER CORP CHAIRMAN ROBERT EATON AND GENERAL MOTORS CORP PRESIDENT JOHN
SMITH

DETROIT'S PITCH FOR A HELPING HAND CAME EVEN AS THE SOUNDS OF A VICTORY OVER
JAPAN FILLED THE AIR IN THE MOTOR CITY FORD MOTOR CO STAGED A HORNHONKING
DOWNTOWN VICTORY PARADE TO TOUT THE FORD TAURUS'S BESTING OF THE HONDA
ACCORD IN THE RACE FOR THE NO 1 SELLING CAR IN THE US LAST YEAR JAPANESE
AUTO MAKERS ALSO LOST SHARE IN THE US MARKET DURING 1992 AS CURRENCY
PRESSURES DROVE PRICES UP AND SENT CONSUMERS SCURRYING TOWARD IMPROVED FORD
AND CHRYSLER PRODUCTS

REPRESENTATIVES OF JAPANESE AUTO MAKERS WASTED NO TIME DENOUNCING THE BIG
THREE'S CALL FOR HELP AS A MOVE TO ADVANCE A PROTECTIONIST TRADE AGENDA

THEY WANT A COMPETITIVE ADVANTAGE SO THEY CAN HAVE THE MARKET TO
THEMSELVES SAID PHILIP HUTCHISON PRESIDENT OF THE ASSOCIATION OF
INTERNATIONAL AUTO MANUFACTURERS THE CONSUMER IS THE ONE WHO TAKES A
BATH

IN DETROIT LAST NIGHT OFFICIALS OF TOYOTA MOTOR CORP'S US SALES ARM SAID
THAT THE ASSOCIATION OF IMPORT AUTO MANUFACTURERS IS ASKING FOR A SIMILAR
MEETING WITH MR CLINTON TO EXPRESS ITS CONCERNS TO THE PRESIDENTELECT WE
AREN'T GOING TO BE ANYBODY'S DOORMAT THIS YEAR ONE TOYOTA EXECUTIVE SAID

MR CLINTON IN A STATEMENT SAID THAT HE AND MR GORE WERE VERY EXCITED
AND ENCOURAGED BY THE MEETING AND HAILED IT AS A FRESH START IN THE
RELATIONSHIP BETWEEN THE GOVERNMENT AND THE INDUSTRY THE AUTO MAKERS HE
SAID ARE CENTRAL TO OUR NATIONAL IMPERATIVE TO CREATE A HIGH WAGE HIGH
GROWTH ECONOMY WE WILL CONTINUE TO WORK TOGETHER ON THESE ISSUES AS PART OF
OUR OVERALL EFFORT TO BRING ON A NEW ERA OF ECONOMIC CHANGE AND OF ECONOMIC
GROWTH

MR CLINTON'S ASSESSMENT OF THE INDUSTRY WASN'T AS GLOWING DURING A CAMPAIGN
APPEARANCE IN MARCH WHEN HE SAID THE CAR MAKERS ASKED FOR PROTECTION FROM
IMPORTS AND THEY GOT IT THEY ASKED FOR REGULATORY RELIEF AND THEY GOT IT
THEY ASKED THE AUTO WORKERS TO GIVE THEM CONCESSIONS AND THEY GOT THEM AND
THEY GOT THEM AND THEY GOT THEM AND THEY GOT THEM

OTHER ISSUES DISCUSSED INCLUDED THE IMPACT OF RISING HEALTHCARE COSTS ON
THE INDUSTRY AND EMISSIONS REGULATIONS WE TALKED ABOUT SEVERAL OF THE
SUBJECTS THAT HE DEALT WITH IN THE CAMPAIGN JOBS INVESTMENT AND
MAINTAINING A STRONG INDUSTRIAL BASE MR POLING SAID AS WELL AS THE
PENDING NORTH AMERICAN FREE TRADE AGREEMENT MR POLING EMPHASIZED THAT THE
AUTO MAKERS DIDN'T ASK FOR ANY SPECIFIC COMMITMENTS AT THE SESSION

STILL THE MOST SIGNIFICANT DEVELOPMENT MAY BE WHAT CLINTON AIDES DESCRIBED
AS THE REMARKABLE CONSENSUS ON A RANGE OF ISSUES AMONG THE PARTICIPANTS
IT SIGNALED THAT GM FOR INSTANCE APPEARS TO BE MOVING CLOSER TO THE OTHER
CAR MAKERS' POSITION ON SUCH ISSUES AS TOUGHER TRADE POLICIES WITH JAPAN IT
WAS ONLY RECENTLY THAT GM OFFERED SUPPORT FOR A HIGHER GASOLINE TAX LONG
AFTER THE OTHER AUTO MAKERS AND THE CORPORATION WHICH SEES ITSELF AS AN
INTERNATIONAL COMPANY HAS BEEN RELUCTANT TO JOIN THE CALL FOR MORE
PROTECTIONISM

CLINTON AIDES SAID THAT IF THE AUTO INDUSTRY CAN SPEAK WITH A SINGLE VOICE
IT WOULD BECOME SIGNIFICANTLY EASIER TO COORDINATE AN AUTO INDUSTRY POLICY

MR POLING ACTING AS THE SPOKESMAN FOR THE OTHER COMPANIES ACKNOWLEDGED
THAT MR CLINTON REPEATED HIS DESIRE TO IMPROVE FUEL EFFICIENCY BUT ADDED
THAT THE PRESIDENTELECT SAID HE DIDN'T WANT TO DO ANYTHING THAT WAS
DETRIMENTAL TO THE AUTO INDUSTRY

MR POLING SAID THE GROUP DISCUSSED THE ADMINISTRATION'S APPROACH TO
REGULATORY POLICIES AND HE SAID THEY WERE ALSO PLEASED WITH THAT ASPECT OF
THE TALKS WHICH AIDES SAID WERE INTENSE AND DETAILED

MR BIEBER CONCEDED THAT WITH SOME ISSUES PARTICULARLY THE TRADE AGREEMENT
WITH MEXICO AND CANADA THERE REMAIN DIFFERENCES BETWEEN THE INDUSTRY AND
MR CLINTON HE SAID THERE ARE SOME POINTS THAT WE DON'T NECESSARILY COME
AT FROM THE SAME STARTING POST OR NECESSARILY GET TO THE SAME FINISHING
LINE

JOSEPH B WHITE IN DETROIT CONTRIBUTED TO THIS ARTICLE 9301070003 930107
WHO'S NEWS AMERITECH CORP

AMERITECH CORP CHICAGO TERRY L BRUCE A FORMER US CONGRESSMAN FROM
ILLINOIS WAS NAMED VICE PRESIDENT OF FEDERAL RELATIONS FOR THIS REGIONAL
BELL TELEPHONE COMPANY EFFECTIVE FEB 1 HE SUCCEEDS JOHN J CONNARN 63
YEARS OLD WHO IS RETIRING AFTER 38 YEARS WITH THE BELL SYSTEM AND WITH
AMERITECH MR BRUCE 48 AN ILLINOIS DEMOCRAT WHO WAS DEFEATED IN THE
PRIMARY RACE WILL HEAD AMERITECH'S WASHINGTON OFFICE OVERSEEING THE
COMPANY'S LOBBYING AND LEGAL WORK WITH CONGRESS THE FEDERAL COMMUNICATIONS
COMMISSION AND OTHER FEDERAL AGENCIES 9301070001 930107 ABREAST OF THE
MARKET DRUG TOBACCO SHARES ARE WEAK TECHNOLOGIES UP IN MIXED CLOSE 
 BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK FALTERING DRUG AND TOBACCO STOCKS OFFSET THE EFFECTS OF SURGING
TECHNOLOGY ISSUES LEADING PRICES TO A MIXED CLOSE

THE DOW JONES INDUSTRIAL AVERAGE LOST 271 POINTS OR 008 TO 330516 THE
STANDARD & POOR'S 500STOCK INDEX INCHED UP 018 POINT OR 004 TO 43452
AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS DOWN 010 POINT OR
004 TO 23915

THE MARKET SOLD THE GOOD DRUGS AND IT SOLD THE BAD DRUGS SAID DAVID
SHULMAN A MARKET STRATEGIST AT SALOMON BROTHERS IT GOT RID OF THE
PHARMACEUTICAL CONCERNS AND THE TOBACCO COMPANIES

THE FIRST WAVE OF SELL ORDERS CAME EARLY IN THE SESSION AS TOBACCO
PRODUCER PHILIP MORRIS THE DAY'S MOSTACTIVE BIG BOARD ISSUE LED THE FALL

AN ENVIRONMENTAL PROTECTION AGENCY STUDY THAT CONCLUDED THAT PASSIVE SMOKE
IS A HUMAN LUNG CARCINOGEN AND FEARS OF A CIGARETTE TAX INCREASE PRESSURED
THE STOCK LOWER ALTHOUGH THE COMPANY SAID THE EPA IGNORED RESEARCH THAT
CONTRADICTED THE FINDINGS ITS STOCK CLOSED 1 5/8 LOWER AT 71 7/8 ABOUT 94
MILLION PHILIP MORRIS SHARES CHANGED HANDS

OTHERS SOON FOLLOWED RJR NABISCO WAS OFF 1/4 TO 8 1/4 AMERICAN BRANDS LOST
1 5/8 TO 37 3/8 AND UST TUMBLED 5/8 TO 31 1/8 WHILE LOEWS SANK 1 5/8 TO 116
1/4

CONCERNS ABOUT THE CLINTON ADMINISTRATION'S NEW HEALTH CARE POLICIES FUELED
THE SELLOFF ANALYSTS SAID MERCK DROPPED 1 1/8 TO 42 AMERICAN HOME
PRODUCTS EASED 2 1/4 POINTS TO 64 1/2 AND JOHNSON & JOHNSON SLIPPED 1 1/2 TO
46 7/8

BUT THE DOWNDRAFT IN THE DRUG AND TOBACCO SECTORS WAS COUNTERED BY A BUYING
TREND AMONG TECHNOLOGY ISSUES DIGITAL EQUIPMENT SURGED 2 TO 35 7/8 COMPAQ
COMPUTER ADDED 1 5/8 TO 49 3/4 AND CRAY RESEARCH GAINED 7/8 TO 23 5/8

MOST OF THE GAINS COULD BE FELT ON THE OVERTHECOUNTER MARKET WHICH IS
HEAVILY WEIGHTED TOWARD TECHNOLOGY STOCKS THE NASDAQ COMPOSITE INDEX SURGED
751 POINTS OR 11 TO 68185

IT LOOKED LIKE WE WERE TRYING TO CLOSE HIGHER BUT A LOT OF THE BIG STOCKS
ON THE DOW INDUSTRIALS STOOD IN THE WAY SAID THOMAS LUKER HEAD OF EQUITY
TRADING AT NIKKO SECURITIES

ONE OF THE ISSUES BLOCKING THE INDUSTRIAL'S RISE WAS INTERNATIONAL BUSINESS
MACHINES WHICH FELL TO AN 18YEAR LOW THE STOCK SLID 7/8 TO 48 A LEVEL
UNSEEN SINCE 1975 AS PART OF THE COMPUTER CONCERN'S PLAN TO ELIMINATE
25000 JOBS WORLDWIDE IT SAID THAT AS MANY AS 3500 JOBS WILL BE CUT FROM
ITS POUGHKEEPSIE KINGSTON AND EAST FISHKILL PLANTS IN NEW YORK STATE

LOW SALES AND IMPROVED EFFICIENCY WERE CITED BY IBM OFFICIALS AS THE REASONS
FOR THE CUTS AT THE COMPANY'S TECHNOLOGY PRODUCTS AND ENTERPRISE SYSTEMS
BUSINESSES THE REDUCTIONS WILL BE COMPLETED IN THE NEXT SEVERAL MONTHS

TRADING WAS ACTIVE NEW YORK STOCK EXCHANGE VOLUME AMOUNTED TO 288530000
SHARES COMPARED WITH TUESDAY'S 240300000 SHARES BIG BOARD ADVANCERS EDGED
OUT DECLINERS 1091 TO 780

TRANSPORTATION ISSUES FARED WELL DESPITE NEWS THAT UAL'S UNITED AIRLINES
WILL REDUCE THE NUMBER OF EMPLOYEES BY 2800 AND GROUND 40 AIRCRAFT IN A
COSTCUTTING MOVE THE DOW JONES TRANSPORTATION AVERAGE WAS UP 826 POINTS
OR 057 TO 146774 ITS HIGHEST SINCE CRASHING AFTER THE FAILED UAL
LEVERAGED BUYOUT IN 1989

SHARES OF UAL WERE OFF 1 1/8 TO 123 7/8 BUT CSX WAS UP 1 1/2 TO 71 3/4 AND
CONSOLIDATED RAIL GAINED 7/8 TO 48 1/2 WHILE AMR ADDED 1 TO 67 7/8

DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES SAID
STOCKS SHOULD REMAIN MIXED TO SLIGHTLY DEPRESSED UNTIL THE END OF THE WEEK
PROFITTAKING CONTINUES IN A LOT OF GROUPS HE SAID I THINK WE'LL
CONTINUE TO SEE MORE OF THE SAME UNTIL FRIDAY'S UNEMPLOYMENT DATA NO ONE'S
GOING TO DO ANYTHING UNTIL THERE'S MORE EVIDENCE THAT THE ECONOMY IS PICKING
UP

IN OTHER DEVELOPMENTS CHRYSLER SURGED 3 TO 36 1/8 THE COMPANY UNVEILED TWO
NEW CAR MODELS AND ANNOUNCED THAT PRODUCTION OF TWO OTHER MODELS WILL REACH
FULL CAPACITY AT ONE OF ITS PLANTS CHRYSLER ALSO SAID IT IS CONSIDERING
MARKETING A CREDIT CARD TO RIVAL GENERAL MOTORS' CARD

A PAIR OF ANALYSTS UPGRADED THEIR EARNINGS OUTLOOK FOR THE AUTO MANUFACTURER
FOR 1993 LEHMAN BROTHERS BY 1 TO 415 A SHARE AND FURMAN SELZ BY
150 TO 5 FURMAN ALSO ADDED CHRYSLER TO ITS RECOMMENDED LIST

TRITON ENERGY SLIPPED 2 1/8 TO 31 1/8 AFTER A SALOMON BROTHERS ANALYST
LOWERED THE DALLAS OIL EXPLORATION COMPANY'S ASSET VALUE TO 40 A SHARE FROM
51 A SHARE IN A REPORT RELEASED TUESDAY THE ANALYST SAID HIS REDUCTION
WAS BASED ON REEVALUATION OF RESERVE VALUES IN COLOMBIA AND A MODEST
INCREASE IN OUR VALUATION OF TRITON'S POTENTIAL IN THAILAND WHERE THE
COMPANY HAS A 50 WORKING INTEREST IN BLOCK 18 IN THE GULF OF THAILAND BUT
THE ANALYST WHO REFERRED TO THE COLOMBIA FIELDS AS FABULOUS REPEATED HIS
HOLD RATING FOR TRITON

BRITISH AIRWAYS AMERICAN DEPOSITARY RECEIPTS FELL 3 1/8 TO 44 5/8 A DROP IN
THE CARRIER'S DECEMBER LOAD FACTOR TO 66 FROM YEAREARLIER 671 TRIGGERED
DOWNGRADES BY SEVERAL ANALYSTS UBS PHILLIPS & DREW CUT ITS PRETAX PROFIT
ESTIMATE FOR THE YEAR ENDING IN MARCH TO 230 MILLION 357 MILLION FROM
280 MILLION AND ITS 1994 ESTIMATE TO 350 MILLION FROM 395 MILLION SG
WARBURG DROPPED ITS FISCAL 1993 FIGURE TO 220 MILLION FROM 260 MILLION
AND THE 1994 ESTIMATE TO 300 MILLION FROM 350 MILLION

ELCOR CLIMBED 2 7/8 TO 20 5/8 AFTER THE DALLAS ROOFING PRODUCTS VENDOR SAID
IT EXPECTS EARNINGS IN THE FISCAL SECOND AND THIRD QUARTERS WILL TOTAL 70
CENTS A SHARE WHICH WOULD EXCEED ANALYSTS' ESTIMATES

THE COMPANY SAID IT EXPECTS TO EARN ABOUT 35 CENTS A SHARE DURING ITS SECOND
QUARTER AND ABOUT 35 CENTS A SHARE DURING ITS THIRD QUARTER ENDING MARCH
31 ANALYSTS WERE LOOKING FOR BETWEEN 30 CENTS AND 41 CENTS A SHARE FOR THE
TWO QUARTERS COMBINED 9301060166 930106 INTERNATIONAL REXRODT SEEN
LEADING FIELD FOR GERMANY'S TOP ECONOMICS POST

BONN GERMANY'S NEXT ECONOMICS MINISTER IS LIKELY TO BE GUENTER REXRODT A
BANKER WITH THE AGENCY THAT IS PRIVATIZING FORMER EAST GERMAN COMPANIES

GOVERNMENT AND PARTY OFFICIALS IN BONN SAID YESTERDAY THAT MR REXRODT WAS
EMERGING AS THE MOST PROBABLE PICK FOR A VARIETY OF REASONS BUT THEY
EMPHASIZED THAT NO FINAL DECISION HAS BEEN MADE OR IS EXPECTED BEFORE
FRIDAY

WHOEVER GETS THE POST FACES A TOUGH TASK THE NEW MINISTER WILL SUCCEED
JUERGEN MOELLEMANN WHO RESIGNED SUNDAY IN THE WAKE OF AN INFLUENCEPEDDLING
SCANDAL THAT BADLY TARNISHED CHANCELLOR HELMUT KOHL'S RIGHTOFCENTER
GOVERNMENT WITH GERMANY PLUNGING INTO A RECESSION AND THE RESTRUCTURING OF
EASTERN GERMANY WAY OFF COURSE MANY CRITICS ARE CALLING ON MR KOHL TO
APPOINT THE MOST QUALIFIED CANDIDATE HE CAN FIND

MR KOHL IS EAGER TO NAME A SUCCESSOR AS SOON AS POSSIBLE BUT UNDER THE
CURRENT THREEPARTY COALITION IT'S THE FREE DEMOCRATS THE JUNIOR PARTNER
IN THE ALLIANCE THAT GET TO PUT FORWARD THE CANDIDATE

MR REXRODT IS CONSIDERED A STRONG CANDIDATE BECAUSE AS A BANKER AND A
FORMER FINANCE MINISTER IN THE BERLIN CITY GOVERNMENT HE COMBINES POLITICAL
CREDENTIALS AS A LEADING MEMBER OF THE FREE DEMOCRATS WITH A MEASURE OF
ECONOMIC EXPERTISE

MR REXRODT IS ALSO A BOARD MEMBER OF THE TREUHANDANSTALT THE TRUST AGENCY
SET UP TO SELL OFF FORMER EAST GERMAN ASSETS MOST ANALYSTS SAY THAT THE
NEXT ECONOMICS MINISTER'S TOP PRIORITY SHOULD BE MANAGING EASTERN GERMANY'S
RECONSTRUCTION AND FEW PLACES GIVE A POLITICIAN MORE HANDSON EXPERIENCE
THAN THE TREUHANDANSTALT

INDEED BOTH OF THE OTHER PEOPLE MOST OFTEN MENTIONED AS POSSIBLE CANDIDATES
ARE CURRENTLY INVOLVED IN EASTERN GERMANY'S ECONOMIC REVIVAL BIRGIT BREUEL
IS HEAD OF THE TREUHANDANSTALT BUT AS A MEMBER OF MR KOHL'S CHRISTIAN
DEMOCRATS SHE COMES FROM THE WRONG PARTY THE OTHER IS WALTER HIRCHE A FREE
DEMOCRAT WHO IS ECONOMICS MINISTER IN THE EASTERN GERMAN STATE OF
BRANDENBURG 9301060165 930106 WHAT'S NEWS  BUSINESS AND FINANCE

THE UNITED STEELWORKERS WILL SEEK INNOVATIVE AGREEMENTS WITH US
STEELMAKERS INCLUDING LONGTERM ACCORDS AND WAYS TO CUT WORK FORCES AND
RELAX STRINGENT WORK RULES MARKING A CHANGE FROM ITS HARDLINE STANCE THE
UNION ACKNOWLEDGED STEELMAKERS' DIFFICULTIES AND THE NEED TO CREATE A
MODERN INDUSTRY

THE NEW YORK FED'S CORRIGAN IS RESIGNING AS PRESIDENT TO ENTER THE PRIVATE
SECTOR IN HIS EIGHT YEARS IN THE POST HE WIELDED THE MOST INFLUENCE OF ANY
CENTRAL BANKER OF THE PAST DECADE IN FINANCIAL CRISIS MANAGEMENT

GERMANY AND FRANCE PLEDGED TO DEFEND THE FRENCH FRANC FROM SPECULATORS AS
THE BANK OF FRANCE BOOSTED A SHORTTERM INTEREST RATE TO FEND OFF A POSTNEW
YEAR'S RUN ON ITS CURRENCY THE DOLLAR FELL IN NEW YORK

STOCKS TURNED IN A MIXED SHOWING WITH THE DOW JONES INDUSTRIAL AVERAGE
SLIPPING 135 POINTS TO 330787 BOND PRICES CLOSED MARGINALLY LOWER

THE SAVINGSANDLOAN CLEANUP BILL IS LIKELY TO BE 10 BILLION LESS THAN
CONGRESS ESTIMATED LAST YEAR ACCORDING TO BUDGET DOCUMENTS THE BUSH
ADMINISTRATION IS PLANNING TO RELEASE TODAY

NEWS CORP'S ADRS TUMBLED MORE THAN 6 ON CONCERNS OVER A SPATE OF EXECUTIVE
DEPARTURES AT THE FOX UNIT AND TWO CHRISTMAS BOXOFFICE FLOPS IN ADDITION
THESE WORRIES ARE RAISING QUESTIONS ABOUT CHIEF EXECUTIVE MURDOCH'S
PERFORMANCE IN HOLLYWOOD

LIBERTY MEDIA HAS AGREED TO BUY OUT ITS LARGEST PARTNER IN THE PRIME NETWORK
REGIONAL SPORTS CHANNELS AND IS ALSO PURSUING A MERGER DEAL WITH ARCHRIVAL
SPORTSCHANNEL AMERICA

SALOMON BROTHERS RESOLVED STATE SECURITIES CLAIMS ARISING FROM ITS TREASURY
SECURITIES SCANDAL AGREEING TO PAY 4 MILLION IN A SETTLEMENT WITH 39
STATES AND WASHINGTON DC

US AUTO MAKERS WILL PRESS CLINTON TODAY ON ISSUES INCLUDING HEALTHCARE
COSTS THE TRADE PACT WITH MEXICO AND FUELEFFICIENCY RULES THE UAW'S
BIEBER WILL ALSO PARTICIPATE

DIGITAL EQUIPMENT'S SENIOR VICE PRESIDENT JOHN SMITH UNEXPECTEDLY SAID HE
WOULD RETIRE THE LATEST IN A SERIES OF HIGHLEVEL DEPARTURES

EQUIFAX NAMED DANIEL MCGLAUGHLIN AS PRESIDENT AND CHIEF OPERATING OFFICER AS
PART OF A MAJOR REORGANIZATION OF THE CREDITREPORTING CONCERN

INTEL NAMED CRAIG BARRETT TO THE POST OF CHIEF OPERATING OFFICER A MOVE
THAT SOLIDIFIES HIS POSITION AS THE LIKELY SUCCESSOR TO THE SEMICONDUCTOR
COMPANY'S CHIEF EXECUTIVE OFFICER

JAPANESE GOVERNMENT OFFICIALS INDICATED THAT THEY WILL CONSIDER AN
ADDITIONAL STIMULUS PACKAGE SOON AFTER THE NEW FISCAL YEAR BEGINS IN APRIL

COFFEE FUTURES PRICES FELL SHARPLY ON CONCERNS ABOUT THE EXPORT POLICY OF
THE NEW GOVERNMENT OF BRAZIL

SEMATECH MEMBER HARRIS HAS LEFT THE COMPUTERCHIP RESEARCH CONSORTIUM
MARKING THE THIRD MEMBERCOMPANY TO LEAVE IN THE PAST YEAR HARRIS'S MOVE
FOLLOWS A BROAD RESTRUCTURING AT ITS OWN SEMICONDUCTOR OPERATIONS

AT&T CUT THE PRICE OF ITS VIDEOPHONE BY 33 A MOVE THAT IS VIEWED AS AN
ATTEMPT TO JUMPSTART SALES AND ESTABLISH AN EARLY DOMINANCE IN THE FIELD
MEANWHILE RIVAL MCI IS PREPARING TO ENTER THE MARKET AS WELL

TOKYO STOCKS FELL AS THE NIKKEI INDEX LOST 15150 TO 1684258 LONDON
EQUITIES ALSO SANK BUT FRANKFURT SHARES RALLIED 16 IN A POSTHOLIDAY
MARKET FLUSH WITH INSTITUTIONAL CASH

SMALLBUSINESS OWNERS ARE CAUTIOUSLY OPTIMISTIC ABOUT BOTH CLINTON AND THE
US ECONOMY WHILE MOST ENTREPRENEURS VOTED FOR BUSH THEY ARE ENCOURAGED
BY THE PRESIDENTELECT'S POLICY STATEMENTS AND POLITICAL APPOINTMENTS SINCE
HIS VICTORY

BONDS LEHMAN BROTHERS TREASURY INDEX 473431 OFF 190

COMMODITIES OIL 1926 A BARREL UP 22 CENTS DOW JONES FUTURES INDEX
12236 OFF 022 SPOT INDEX 12113 UP 013

DOLLAR 12483 YEN OFF 052 16255 MARKS OFF 0014 9301060164 930106
WHO'S NEWS LIZ CLAIBORNE INC

LIZ CLAIBORNE INC NEW YORK HARRIET MOSSON 50 YEARS OLD WAS NAMED
PRESIDENT OF LIZ CLAIBORNE DRESSES A DIVISION OF THIS MAJOR APPAREL
COMPANY MS MOSSON WHOSE POSITION IS NEWLY CREATED WILL CONTINUE AS
PRESIDENT OF LIZ CLAIBORNE SUITS AS A RESULT THE POSITION MARTIN RICHTER
HELD AS PRESIDENT OF THE DRESS DIVISION WAS ELIMINATED MR RICHTER RESIGNED
DEC 31 DECLINING TO PURSUE OTHER OPPORTUNITIES WITHIN THE ORGANIZATION
THE TWO DIVISIONS WILL CONTINUE TO OPERATE AS SEPARATE BUSINESSES BUT MS
MOSSON WILL HEAD BOTH IN HER NEW COMBINED ROLE 9301060163 930106
INTERNATIONAL RUSSIA'S NEW PREMIER BROADENS PRICE CONTROLS ON ESSENTIAL
GOODS  BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL

MOSCOW RUSSIA'S NEW PRIME MINISTER VIKTOR CHERNOMYRDIN TRYING TO
FULFILL A PROMISE TO STABILIZE THE ECONOMY AND CURB INFLATION EXTENDED
GOVERNMENT PRICE CONTROLS ON A RANGE OF BASIC GOODS

EVER SINCE THE GOVERNMENT TECHNICALLY FREED PRICES A YEAR AGO IT HAS
MAINTAINED CONTROLS OVER CERTAIN INDUSTRIES AND SOCALLED MONOPOLIES BUT
UNDER A NEW DECREE ISSUED BY THE PRIME MINISTER NONMONOPOLY PRODUCERS OF
BREAD MILK MEAT AND OTHER FOODSTUFFS AS WELL AS MEDICINES ALSO WILL HAVE
TO LIMIT PROFIT MARGINS TO BETWEEN 10 AND 25 OF REVENUE

IT WASN'T CLEAR HOW MUCH THE DECREE WILL SET BACK THE FREEMARKET REFORMS
INITIATED BY THE FORMER ACTING PRIME MINISTER YEGOR GAIDAR NOR WAS IT
CLEAR HOW EFFECTIVE THE NEW MEASURE WOULD BE THE RUSSIAN ECONOMY IS ALREADY
FAR MORE LOOSE THAN THE CENTRAL COMMAND SYSTEM OF THE FORMER SOVIET UNION

THERE WAS NO OFFICIAL REACTION FROM REFORMERS IN THE GOVERNMENT INCLUDING
THE NEW DEPUTY PRIME MINISTER FOR FINANCE BORIS FYODOROV BUT MR
CHERNOMYRDIN HINTED IN A SPEECH TO INDUSTRIALISTS THAT SOME WHO DISAGREE
WITH HIM WOULD STEP DOWN THOSE WHO WANT TO WORK IN THE HARD BUSINESS OF
REFORMS WILL WORK THOSE WHO WANT TO STEP ASIDE LET GOD JUDGE THEM HE
SAID

IN THE SPEECH THE FIRST MAJOR ADDRESS HE HAS GIVEN SINCE HE WAS APPOINTED
LAST MONTH IN A MOVE TO ASSUAGE CONSERVATIVES MR CHERNOMYRDIN SAID HE
DOESN'T PLAN TO BACKTRACK ON REFORMS HE EMPHASIZED THAT THE COUNTRY'S
PRIVATIZATION PROGRAM IN PARTICULAR MUST GO FORWARD

BUT HE SAID THAT MR GAIDAR'S PLAN TO ALLOW THE MARKET TO CHANGE THE
BEHAVIOR OF MONOPOLISTIC STATE ENTERPRISES HAD FAILED WHILE MR GAIDAR HAD
HOPED THAT FREE PRICES AND TIGHT CASH WOULD DRIVE THE ENTERPRISES TO MORE
EFFICIENT PRODUCTION MR CHERNOMYRDIN NOTED THAT MANY ENTERPRISES HAD
RAISED PRICES AND CUT PRODUCTION WHEN GOODS DIDN'T SELL INSTEAD OF LOWERING
PRICES NONMONOPOLIST ENTERPRISES WERE INVOLVED IN FIXING PRICES HE SAID
AND WERE PARTLY DRIVING INFLATION

WHEN PRICES WERE FREED LAST JANUARY THEY INITIALLY JUMPED ABOUT 300 A
MONTH BY THE MIDDLE OF THE YEAR MONTHLY INFLATION HAD SETTLED DOWN TO
ABOUT 7 BUT PICKED UP AS MR GAIDAR'S GOVERNMENT BEGAN HANDING OUT CREDITS
AGAIN TO CASHSTARVED ENTERPRISES

THERE IS NO TALK ABOUT A BACKTRACK FROM REFORMS AIMED AT A SOCIALLY
ORIENTED MARKET ECONOMY MR CHERNOMYRDIN WAS QUOTED AS SAYING AT THE
MEETING BY THE ITARTASS NEWS AGENCY THERE IS ANOTHER QUESTION HOW TO GO
FORWARD WITHOUT BREAKING YOUR NECK MR CHERNOMYRDIN SAID HE WAS GOING TO
CORRECT MISTAKES AND STRENGTHEN THE ROLE OF THE STATE AS THE PROPRIETOR
OF THE BULK OF INDUSTRIAL POTENTIAL TASS REPORTED

MR CHERNOMYRDIN SAID HE HAD WORKED OUT A TWOYEAR FEDERAL PROGRAM OF
DEVELOPMENT FOR BASIC INDUSTRY THAT WOULD SOON BE DISCUSSED BY THE
GOVERNMENT HE DIDN'T PROVIDE DETAILS BUT SAID IT ENVISAGES MEASURES TO
STABILIZE CERTAIN BRANCHES OF THE ECONOMY AND SWITCH THE MILITARYINDUSTRIAL
COMPLEX TO CIVILIAN PRODUCTION

IMPROVISATION IN ECONOMIC POLICY SHOULD BE REPLACED BY COLD CALCULATION AND
PRACTICAL ORGANIZATION OF WORK EMERGING AND EXISTING PROBLEMS SHOULD BE
SOLVED GRADUALLY AND BY PHASES MR CHERNOMYRDIN SAID

BUT THE PRIME MINISTER DIDN'T SAY HOW HE WOULD DEAL WITH HYPERINFLATION
WHICH MANY RUSSIANS FEAR COULD DEVELOP INFLATION IS NOW AROUND 25 A MONTH
IN ADDITION EVEN BEFORE OFFICIAL PRICE CONTROLS WERE ABANDONED A YEAR AGO
MANY PRODUCERS HAD BROKEN AWAY FROM THE CONTROL OF THE STATE PRICE COMMITTEE
AND WERE RAISING PRICES A YEAR LATER IT'S DOUBTFUL MR CHERNOMYRDIN CAN
REGULATE THE ECONOMY IN THIS WAY

MR CHERNOMYRDIN WAS ELECTED BY THE RUSSIAN CONGRESS OF PEOPLE'S DEPUTIES
AFTER CONSERVATIVES DEMANDED THAT MR GAIDAR'S TOUGH ECONOMIC POLICY BE
DISBANDED MR CHERNOMYRDIN HAS ALREADY APPROVED 200 BILLION RUBLES 480
MILLION IN NEW LOWINTEREST LOANS FOR THE AILING ENERGY SECTOR PRODUCTION
IN THE ECONOMY OVERALL FELL BY 20 IN 1992 9301060162 930106 WALGREEN
POSTS SALES GAINS

DEERFIELD ILL WALGREEN CO SAID DECEMBER SALES ROSE 12 TO 9347
MILLION FROM 8373 MILLION A YEAR AGO

SALES IN COMPARABLE STORES OPEN AT LEAST A YEAR ROSE 75 THE DRUG RETAILER
SAID COMPARABLESTORE SALES FOR THE AUG 31 FISCAL YEAR TO DATE INCREASED
8

CALENDAR 1992 SALES ROSE 11 TO 778 BILLION FROM 698 BILLION IN 1991
9301060161 930106 BMW'S FINANCIAL SERVICES FIRM

WOODCLIFF LAKE NJ BMW OF NORTH AMERICA INC A UNIT OF GERMANY'S
BAYERISCHE MOTOREN WERKE AG SAID IT HAS ESTABLISHED ITS OWN FINANCIAL
SERVICES COMPANY TO PROVIDE FINANCING AND LEASING PRODUCTS TO ITS CUSTOMERS
AND 356MEMBER DEALER ORGANIZATIONS 9301060160 930106 PENNZOIL SELLS GOLD
PROJECT STAKE

HOUSTON PENNZOIL CO CONTINUING ITS DISPOSAL OF NONSTRATEGIC ASSETS
SAID IT COMPLETED THE SALE OF A MAJORITY INTEREST IN AN INDONESIAN GOLD
PROJECT TO ASHTON MINING LTD OF AUSTRALIA

TERMS OF THE SALE WERE NOT DISCLOSED THROUGH A SUBSIDIARY PENNZOIL HELD A
90 INTEREST IN THE MOUNT MURO PROJECT IN CENTRAL KALIMANTAN INDONESIA
9301060159 930106 HEILIGMEYERS SALES CLIMB

RICHMOND VA HOME FURNISHINGS RETAILER HEILIGMEYERS CO SAID DECEMBER
SALES CLIMBED 25 TO 688 MILLION FROM 55 MILLION A YEAR EARLIER WHILE
COMPARABLESTORE SALES ROSE 12

HEILIGMEYERS OPERATES 417 STORES IN 16 STATES 9301060158 930106 MITCHELL
ENERGY WELL

THE WOODLANDS TEXAS MITCHELL ENERGY & DEVELOPMENT CORP SAID ITS FIVE
NATURAL GAS DEVELOPMENT WELLS IN NORTH TEXAS TESTED AT A COMBINED RATE OF
182 MILLION CUBIC FEET OF GAS A DAY

THE WELLS LOCATED IN THE NEWARK EAST FIELD OF WISE COUNTY TEXAS WERE
TESTED ON A 18/64INCH RESTRICTED OPENING OR CHOKE

MITCHELL ENERGY'S DEVELOPMENT DRILLING PARTNERSHIP OWNS ALL OF THE WORKING
INTERESTS IN FOUR OF THE WELLS AND 98 OF THE FIFTH 9301060157 930106
INTERNATIONAL CS HOLDING TO TAKE CONTROLLING STAKE IN SWISS VOLKSBANK
  A WALL STREET JOURNAL NEWS ROUNDUP

ZURICH CS HOLDING AG THE PARENT OF CREDIT SUISSE PLANS TO TAKE A
CONTROLLING STAKE IN SWISS VOLKSBANK SWITZERLAND'S FIFTHLARGEST BANK

UNDER THE AGREEMENT VOLKSBANK WILL BE HOUSED UNDER THE CS HOLDING UMBRELLA
BUT THE BANK WILL RETAIN ITS OWN IDENTITY AND WILL CONTINUE TO TRADE UNDER
ITS EXISTING NAME

AT THE BEGINNING OF FEBRUARY CS HOLDING PLANS TO ANNOUNCE A SHARE OFFER
THE COMPANY EXPECTS TO OFFER THREE CS HOLDING REGISTERED SHARES WITH A
NOMINAL VALUE OF 100 SWISS FRANCS 6750 FOR EACH 500 FRANCS OF VOLKSBANK
NOMINAL CAPITAL OR ONE VOLKSBANK SHARE CERTIFICATE OR 10 PARTICIPATION
CERTIFICATES

VOLKSBANK SHARES WERE SUSPENDED MONDAY PENDING A POSITIVE ANNOUNCEMENT
PRIOR TO THE SUSPENSION COOPERATIVE VOLKSBANK SHARES TRADED AT 720 SWISS
FRANCS

CS HOLDINGS SAID CREDIT SUISSE WILL CONCENTRATE ON INTERNATIONAL ACTIVITIES
SECURITIES UNDERWRITING AND MAJOR CORPORATE AND INSTITUTIONAL CLIENTS
VOLKSBANK MEANWHILE WILL FOCUS MAINLY ON BUSINESS WITH SMALL AND
MEDIUMSIZED COMPANIES AND PRIVATE CLIENTS WITHIN SWITZERLAND

AMONG OTHER THINGS THE CS HOLDING PLAN HINGES ON THE PENDING CONVERSION OF
VOLKSBANK INTO A PUBLIC LIMITED COMPANY FROM ITS CURRENT COOPERATIVE SOCIETY
STRUCTURE

VOLKSBANK HAS LONG SOUGHT A STRONG PARTNER TO PROP UP ITS POSITION IN AN
INCREASINGLY TOUGH BANKING MARKET ITS PROFITS HAVE BEEN BATTERED IN THE
PAST FEW YEARS BECAUSE OF SWITZERLAND'S RECESSION AND ITS DEPRESSED REAL
ESTATE MARKET

ON SPECULATION THAT CREDIT SUISSE WOULD JOIN FORCES WITH VOLKSBANK SHARES
IN CS HOLDING FELL 70 FRANCS TO 2100 FRANCS ON THE ZURICH EXCHANGE
YESTERDAY BEFORE THE ANNOUNCEMENT ANALYSTS SAID THAT SUCH A PARTNERSHIP
WOULD BRING CREDIT SUISSE LIMITED ADVANTAGES AS IT ALREADY HAS A STRONG
RETAIL NETWORK IN SWITZERLAND THAT DOESN'T NEED SUPPLEMENTING 9301060156
930106 LEISURE & ARTS POP MUSIC FOR THE YOUNG AND PIOUS  BY
BARBARA JEPSON

AFTER VISITING SEVERAL ENGLISH CATHEDRALS DURING THE 16TH CENTURY THE
HUMANIST SCHOLAR ERASMUS COMPLAINED THAT BRITISH CHORISTERS SEEM TO THINK
THAT GOD IS PLEASED WITH INSTRUMENTAL NEIGHINGS AND AGILE THROATS

I WONDER WHAT ERASMUS WOULD MAKE OF PETRA A GROUP OF FIVE LONGHAIRED
CHRISTIAN ROCKERS WHO SOUND LIKE LED ZEPPELIN AND SING SONGS SUCH AS ARMED
AND DANGEROUS WHICH CREDITS EPHESIANS 61117 ALONG WITH THE SONGWRITER
PUT ON THE FULL ARMOR OF GOD THAT YOU MAY BE ABLE TO STAND FIRM AGAINST
THE SCHEMES OF THE DEVIL  

PETRA IS ONLY ONE EXAMPLE OF A WHOLE WING OF CONTEMPORARY CHRISTIAN MUSIC
THAT THE RECORDING INDUSTRY LIKES TO LUMP INCORRECTLY UNDER THE GENERAL
HEADING OF GOSPEL THESE GROUPS SING INSPIRATIONAL SONGS IN A ROCK RAP
REGGAE HEAVY METAL BLUES COUNTRY OR JAZZ IDIOM IT'S DEFINITELY A CHANGE
FROM THE HYMNS AND SACRED ELEVATOR MUSIC THAT STILL DOMINATE THE NATION'S
400 CHRISTIAN RADIO STATIONS AND SOME BELIEVERS FIND IT OBJECTIONABLE

THE ISSUE I THINK IS NOT WHETHER THIS MIX OF THE SACRED AND SECULAR IS
INAPPROPRIATE BUT HOW EFFECTIVELY IT WORKS AS A BELIEVER AND A MUSIC
JOURNALIST I HAVE THREE CRITERIA DOES THE SPIRITUAL CONTENT ENCOURAGE
EXHORT OR CONFRONT ME IN SOME WAY SECOND IS THE MUSIC APPEALING FINALLY
DOES THE MUSIC SUIT THE TEXT AS IMPORTANT A CONSIDERATION FOR
INSPIRATIONAL SONGWRITERS AS IT WAS FOR COMPOSERS OF THE SIMPLE PSALM
SETTINGS ERASMUS FAVORED FOR WORSHIP SERVICES

PETRA SUCCEEDS ON ALL COUNTS THE BAND'S HARDDRIVING GUITARPOWERED
RHYTHMS AND SYNTHESIZERLACED SOUND REFLECT ITS LYRICS WHICH PULL NO
PUNCHES DON'T LET YOUR MOUTH START TALKIN'/UNTIL YOUR FEET START WALKIN'
PETRA ADMONISHES CHRISTIANS IN SEEN AND NOT HEARD A RAUCOUS CUT FROM
BEYOND BELIEF THE BAND'S GRAMMY AWARDWINNING 1991 ALBUM ON WORD/EPIC
UNSEEN POWER PETRA'S LATEST RELEASE FOR DAYSPRING HAS A BIT MORE
MUSICAL VARIETY I DEFY ANYONE TO SIT STILL DURING WHO'S ON THE LORD'S
SIDE IT'S A ROLLICKING HYBRID OF BLACK GOSPEL AND ROCK

SIMILARLY THE UNOBTRUSIVE ACCOMPANIMENTS TO TWILA PARIS'S PRAYERFUL BALLADS
AND UPBEAT SOFT ROCK COMPLEMENT HER INTROSPECTIVE TEXTS MORE THAN ANYONE
ELSE THE 31YEAROLD SINGER/SONGWRITER FROM FAYETTEVILLE ARK WRITES
LYRICS THAT HOLD UP A MIRROR TO MY SPIRITUAL LIFE

IT TOOK PARIS FOUR YEARS TO SELL ENOUGH CASSETTES TO REPAY THE BANK LOAN
REQUIRED TO MAKE HER FIRST RECORDING SINCE THEN SHE'S WRITTEN SEVERAL
EXCEPTIONAL WORSHIP SONGS THAT HAVE ENTERED THE LITURGY AND SHE'S ALSO HAD
13 NO 1 SINGLES ON THE CONTEMPORARY CHRISTIAN CHARTS

TEN OF THEM ARE INCLUDED IN A HEART THAT KNOWS YOU HER LATEST RELEASE
FROM STAR SONG WHICH CULLS THE BEST FROM PREVIOUS ALBUMS AND INCLUDES TWO
APPEALING NEW SONGS AS WELL THE WARRIOR IS A CHILD HER 1984 HIT IS
HEARD IN AN EFFECTIVE NEW ARRANGEMENT FOR STRING QUARTET AND PIANO THAT
UNDERLINES THE INTIMACY OF THE LYRICS MY ONLY QUIBBLE THE OMISSION OF HE
IS NO FOOL FROM FOR EVERY HEART A PERSONAL FAVORITE

THE DAUGHTER OF A MUSICALLY GIFTED MINISTER PARIS STARTED SINGING AT CHURCH
AS A PRESCHOOLER BEGAN PIANO LESSONS AT SIX JOINED THE CHOIR IN HIGH
SCHOOL AND PLANNED ON BECOMING A CHORAL TEACHER SONGWRITING NEVER ENTERED
HER MIND UNTIL SHE SPENT A YEAR AT A CHRISTIAN DISCIPLESHIP SCHOOL WHERE
STUDENTS SEEK TO DEEPEN THEIR RELATIONSHIP WITH GOD

I BEGAN TO REALIZE SAYS PARIS HOW MUCH HOLLOWNESS AND
SELFRIGHTEOUSNESS THERE HAD BEEN IN MY CHRISTIANITY GROWING UP AS A
PREACHER'S KID IT WAS LIKE GOD WAS DOING MAJOR SURGERY ON MY HEART  
WITH ALL THAT HAPPENING SO FAST I NEEDED AN OUTLET AS A MUSICIAN I VERY
NATURALLY BEGAN TO WRITE SONGS

MARGARET BECKER A HOT YOUNG SINGER/SONGWRITER FROM EAST ISLIP LI ALSO
DEALS OPENLY WITH THE CHALLENGES OF CHRISTIAN LIVING LOOK ME IN THE
EYE/TELL ME IF YOU SEE/TRACES OF YOURSELF GROWING HERE IN ME SHE PLEADS
IN A COMPELLING SONG ON STEPS OF FAITH HER LATEST ALBUM FOR SPARROW
RECORDS THE MUSIC IN THIS COLLECTION OF HER BEST MATERIAL SINCE HER 1987
DEBUT RANGES FROM SIMPLE BALLADS TO PROPULSIVE ROCK AND THE ARRANGEMENTS
ARE MORE INVENTIVE THAN MOST

CONVERSELY THE SLICK OVERPRODUCED ARRANGEMENTS OF MANY OF THE SONGS ON
SANDI PATTI'S MOST RECENT ALBUM FOR WORD ANOTHER TIME ANOTHER PLACE
DETRACT FROM HER IMPRESSIVE VOCAL SKILLS ABOVEAVERAGE LYRICS AND OBVIOUS
SINCERITY THE ALBUM A BIT OF A DEPARTURE FROM THE PREVIOUS EFFORTS OF THE
FIVETIME GRAMMY AWARD WINNER ALSO SUFFERS FROM A PAUCITY OF REALLY
APPEALING MATERIAL AND THE LACK OF A DISTINCTIVE MUSICAL PROFILE PERHAPS
BECAUSE THE 36YEAROLD INDIANA ARTIST USES SONGS FROM A VARIETY OF
SONGWRITERS IN MYRIAD STYLES

THAT DIVERSITY NONETHELESS SHOWS HOW MUCH THINGS HAVE CHANGED IN
CONTEMPORARY CHRISTIAN MUSIC SINCE ITS BEGINNINGS IN THE COUNTERCULTURE OF
THE 1960S BACK THEN YOUNG BELIEVERS ASSOCIATED WITH THE JESUS MOVEMENT
BEGAN WRITING EVANGELISTIC SONGS IN THE MUSICAL LANGUAGE OF THEIR
GENERATION ORIGINALLY PEDDLED BY PERFORMERS AFTER THEIR CONCERTS
CONTEMPORARY CHRISTIAN IS NOW A FULLFLEDGED INDUSTRY WITH ITS OWN STARS
PUBLICISTS AND AWARDS

ALTHOUGH SALES ARE SMALL RELATIVE TO MAINSTREAM ROCK REVENUES HAVE NEARLY
TRIPLED IN THIS CATEGORY DURING THE PAST DECADE TO NEARLY 500 MILLION OF
SALES IN CHRISTIAN BOOKSTORES ALONE AND BORNAGAIN PERFORMERS SUCH AS
MICHAEL W SMITH AND AMY GRANT HAVE HAD SINGLES WITH NONSPIRITUAL LYRICS
SHOW UP IN THE TOP 10 OF BILLBOARD'S HOT 100 CHART

NOT SURPRISINGLY THIS DEVELOPMENT HAS WHETTED THE APPETITES OF MAINSTREAM
RECORD LABELS SUCH AS EMI/LIBERTY EPIC AND GEFFEN FOR DISTRIBUTION
AGREEMENTS AND OUTRIGHT ACQUISITIONS OF CHRISTIAN LABELS YET THE GENRE
REMAINS MUSIC WITH A MESSAGE WHICH LIMITS ITS AUDIENCE

THIS IS WHAT I BELIEVE SAYS PARIS PEOPLE MAY NOT ACCEPT IT BUT
CONTEMPORARY CHRISTIAN MUSIC IS A WAY OF SAYING THAT THERE ARE TRUE
PRINCIPLES GIVEN TO US BY GOD WHICH WILL WORK IF WE APPLY THEM TO OUR
LIVES

MS JEPSON IS A FREELANCE MUSIC WRITER IN NEW YORK 9301060155 930106
INTERNATIONAL JAPANESE EXPORTS OF VCRS FALL

TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS IN NOVEMBER FELL 23
FROM A YEAR EARLIER TO 135 MILLION UNITS THE ELECTRONICS INDUSTRY
ASSOCIATION OF JAPAN REPORTED

THE GENERAL TREND REMAINED UNCHANGED WITH SHIPMENTS TO KEY MARKETS SUCH AS
THE US GERMANY AND CHINA SLIPPING BELOW YEAREARLIER LEVELS BUT THOSE
TO ASIAN COUNTRIES OUTSIDE CHINA POSTED STRONG GAINS

MEANWHILE COLOR TELEVISION EXPORTS ROSE 32 YEAR ON YEAR TO 306000 UNITS
SHIPMENTS TO ASIAN COUNTRIES WERE UP SHARPLY THOSE TO THE EUROPEAN
COMMUNITY EDGED HIGHER BUT EXPORTS TO THE US PLUNGED 59 9301060154
930106 CIRCUIT CITY SALES INCREASE 21

RICHMOND VA CIRCUIT CITY STORES INC SAID DECEMBER SALES ROSE 21 TO
5689 MILLION FROM 4697 MILLION WHILE COMPARABLE STORE SALES ROSE 9

DECEMBER'S TOTAL SALES GROWTH REFLECTS THE 30 SUPERSTORES OPENED DURING THE
PAST YEAR AND A COMPARABLE STORE SALES INCREASE THAT SOMEWHAT EXCEEDED OUR
EXPECTATIONS SAID RICHARD L SHARP PRESIDENT AND CHIEF EXECUTIVE OFFICER
WE ARE PLEASED WITH OUR PERFORMANCE FOR THE HOLIDAY PERIOD ALTHOUGH OUR
RESULTS CONTINUE TO BE AFFECTED BY THE WEAK ECONOMY IN SOUTHERN CALIFORNIA
9301060153 930106 ECONOMIC SOLUTIONS TO EUROPE'S XENOPHOBIA  BY
EDZARD REUTER

AS A GERMAN OF A GENERATION THAT HAS PRIDED ITSELF ON ITS TOLERANCE AND
EFFORTS TO UNDO THE GREAT WRONGS OF GERMANY'S PAST I AM SHOCKED BY THE
RECENT VIOLENCE AGAINST FOREIGNERS HUNDREDS OF THOUSANDS OF GERMANS WHO
HAVE BEEN DEMONSTRATING IN THE STREETS IN THE PAST FEW WEEKS HAVE SHOWN
THAT THE MAJORITY OF OUR CITIZENS FEEL AS I DO

MY OWN HISTORY STRENGTHENS MY FEELING HERE MY FATHER THE GERMAN POLITICIAN
ERNST REUTER WAS PERSECUTED BY THE NAZIS IN 1937 OUR FAMILY WAS FORCED TO
SEEK ASYLUM IN TURKEY AFTER THE WAR MY FATHER WAS WEST BERLIN'S MAYOR 
HIS TERM COINCIDED WITH THE SOVIET BLOCKADE AND THE AIR LIFT OUR FAMILY'S
EXPERIENCE SHOWS THAT THERE IS A NEED FOR OUTSPOKEN STATEMENTS AS WELL AS
DISTINCT ACTS BY THOSE WHO HAVE THE ABILITY TO DEMONSTRATE LEADERSHIP

BUT EVEN AS WE DEPLORE THESE HATE CRIMES WHICH ECHO THE BRUTALITY OF THE
EARLY 1930S WE MUST NOT LOSE SIGHT OF THE TREMENDOUS SUCCESS OF GERMAN
DEMOCRACY IN PROMOTING POLITICAL STABILITY AND SOCIAL TOLERANCE AND
PROVIDING A SAFE HAVEN TO IMMIGRANTS FROM ALL QUARTERS

GERMANY THROUGHOUT THE POSTWAR ERA HAS BEEN A MULTICULTURAL SOCIETY OUR
ECONOMIC AND POLITICAL SUCCESS WOULD NEVER HAVE BEEN POSSIBLE WITHOUT THE
DEDICATION OF PEOPLE FROM MANY COUNTRIES WHO HAVE HELPED SHAPE A COMMON
FUTURE

THUS IT IS NOT CONCERN OVER CRITICISM FROM THE OUTSIDE WORLD THAT INSPIRES
AND MOTIVATES US TO RESPOND TO INTOLERANCE IN OUR COUNTRY NOR IS IT FEAR OF
GETTING A BLACK EYE FROM FOREIGN BUSINESS PARTNERS RATHER OUR FUTURE
SUCCESS AS A SOCIETY DEPENDS ON OVERCOMING EXTREMISM AND MAINTAINING THE
CULTURAL HARMONY THAT SUPPORTS GERMAN DEMOCRACY

TODAY GERMANY IS THE PREMIER SAFE HAVEN FOR THOSE SEEKING REFUGE FROM
POLITICAL AND ECONOMIC TURMOIL WE HAVE BEEN RECEIVING IMMIGRANTS AT THE
RATE OF 60000 A MONTH DURING THE PAST YEAR ALONE TO 450000 IMMIGRANTS
FROM THE FORMER SOVIET BLOC ADD 250000 REFUGEES FROM THE FORMER YUGOSLAVIA
AND YOU HAVE AN INFLUX OF NEEDY PEOPLE THAT NO OTHER EUROPEAN COUNTRY FACES
THIS HAS CREATED SOME FLASHPOINTS OF SOCIAL UNREST IN THE IMPOVERISHED
EASTERN HALF OF OUR COUNTRY AND DEMONSTRATED THAT REGRETTABLY THERE ARE
LIMITS TO GERMANY'S ABILITY TO SUPPORT INDEFINITELY THIS INFLUX

NOTHING NOT EVEN THE STRAIN CAUSED BY THIS FINANCIAL BURDEN CAN EXCUSE THE
HORRENDOUS AND UNJUSTIFIABLE ACTIVITIES OF A SMALL MINORITY OF RACIST THUGS
BUT THE VIOLENCE IN GERMANY SHOULD REMIND ALL EUROPEANS THAT CONTENDING WITH
IMMIGRANTS IS NOT JUST A GERMAN PROBLEM IT IS A PANEUROPEAN PROBLEM
SOLUTIONS THEREFORE MUST BE FOUND NOT ONLY WITHIN GERMANY BUT IN CONCERT
WITH ALL OF EUROPE

MY COUNTRY STILL REMAINS COMMITTED TO WELCOMING REFUGEES AND ASYLUMSEEKERS
DESPITE THE HUGE BURDENS ASSOCIATED WITH TAKING INTO THE FOLD AN
IMPOVERISHED EASTERN GERMANY AT A TIME OF RECESSION THROUGHOUT EUROPE YET
OF NECESSITY WE WILL HAVE TO PLACE SOME LIMITS ON THE INFLUX OF IMMIGRANTS
THROUGH OUR BORDERS THEREFORE WE MUST ENSURE THAT ALL EUROPEAN COUNTRIES
JOINTLY FACE THE IMMIGRATION CHALLENGE AND TAKE IN THOSE GERMANY CANNOT
ACCOMMODATE

IMMIGRATION HOWEVER IS ONLY THE IMMEDIATE SYMPTOM OF LARGER SOCIAL ILLS
SPAWNED BY NATIONALIST UPHEAVAL AND POVERTY IN THE POSTCOLD WAR WORLD IT
IS CRITICALLY IMPORTANT THAT THE WEALTHY WESTERN DEMOCRACIES MORE
AGGRESSIVELY ATTACK THE SOURCES OF EUROPE'S PROBLEM WE MUST AND CAN DO
MORE IN PROMOTING PROSPERITY AND STABILITY ALONG EUROPE'S PERIPHERY IN THE
BALKANS THE STATES OF THE FORMER SOVIET UNION AND THE MEDITERRANEAN BASIN
THIS IS THEREFORE NOT SIMPLY A GERMAN CHALLENGE NOR IS IT A EUROPEAN
PROBLEM IT'S A GLOBAL PROBLEM AND IT REQUIRES COLLECTIVE EFFORTS AMONG THE
INDUSTRIAL POWERS PRINCIPALLY IN THE FORM OF TRADE INVESTMENT FOREIGN
AID PEACEKEEPING AND MORAL LEADERSHIP TO SOLVE IT

EUROPE'S BUSINESS COMMUNITY HAS AN OBLIGATION TO LEAD THE WAY IN INCREASING
INVESTMENT IN EASTERN EUROPEAN AND NORTH AFRICAN ECONOMIES WE SHOULD ALSO
ENCOURAGE THE US TO PLAY A MORE ACTIVE ROLE IN INVESTING IN THESE
SUFFERING REGIONS BECAUSE WE CANNOT WAIT FOR POLITICIANS TO ADDRESS THIS
ISSUE OF SOCIAL UNREST AND POVERTY IT IS ESSENTIAL THAT WESTERN BUSINESS
LEADERS HARNESS THEIR ENTREPRENEURIAL ACUMEN TO GENERATE PROSPERITY AND
STABILITY

ALONGSIDE SUCH ECONOMIC ENDEAVORS WE MUST NOT IGNORE THE ROLE OF MORAL
LEADERSHIP WHERE I FEEL THAT GERMANY TOGETHER WITH ITS WESTERN EUROPEAN
PARTNERS MUST PLAY A CONSPICUOUS VANGUARD ROLE ONE THING THAT RECENT
HISTORY DEMONSTRATES IS THE POWER OF DEMOCRATIC IDEALS AND MORAL EXAMPLE IN
SHAPING POLITICAL TRENDS OBSERVING THE WESTERN DEMOCRATIC EXAMPLE HELPED
MOTIVATE THE VELVET REVOLUTIONS THAT CRACKED THE COMMUNIST MONOLITH NOW WE
MUST DEMONSTRATE THROUGH OUR ACTIONS THAT WE WILL NOT STAND FOR INTOLERANCE
IN OUR OWN HOME THEREBY ENCOURAGING THE NEWLY EMERGING NATIONS BEYOND OUR
BORDERS TO FOLLOW THIS EXAMPLE

AT DAIMLERBENZ WE ARE ALREADY COMMITTED TO USING OUR INDIVIDUAL AND
CORPORATE INFLUENCE TO MOTIVATE OUR EMPLOYEES THEIR FAMILIES AND THOSE IN
THE COMMUNITIES IN WHICH THEY LIVE TO GIVE VOICE CLEARLY AND STRONGLY TO
THEIR DISDAIN AND OPPOSITION TO RACISM AND FASCISM THROUGH NUMEROUS APPEALS
TO OUR EMPLOYEES AND THE PUBLIC DAIMLERBENZ HAS BEEN FIGHTING FOR
TOLERANCE EUROPEAN COMPANIES IN FRANCE ITALY BRITAIN AND SPAIN 
THROUGHOUT THE CONTINENT SHOULD WORK TO MAKE TOLERANCE A KEY THEME OF
THEIR EMPLOYEE COMMUNICATIONS WE EUROPEANS MUST ADMIT THAT WE HAVE
SOMETHING TO LEARN FROM THE EFFORTS OF AMERICAN BUSINESS OVER THE PAST TWO
DECADES TO COUNTERACT HARASSMENT AND DISCRIMINATION ON THE BASIS OF RACE
RELIGION AND GENDER

BECAUSE OF OUR TORTURED PAST OUR SUCCESSFUL PRESENT AND OUR PROMISING
FUTURE WE GERMANS MUST BE STANDARDBEARERS FOR TOLERANCE AND DIVERSITY
WITHIN SOCIETY BUT COUNTERING THE SOURCES OF INTERETHNIC HATRED AND
VIOLENCE IS TRULY THE RESPONSIBILITY AND DUTY OF ALL EUROPEANS

MR REUTER IS CHAIRMAN OF THE BOARD OF DAIMLERBENZ AG 9301060152 930106
TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX 
DEVELOPMENTS  BY SCOTT R SCHMEDEL

STATES REJECT A PACT WITH MAILORDER HOUSES TO SOLVE THE SALESTAX DISPUTE

NOW STATES ARE EXPECTED TO TRY AGAIN TO GET CONGRESS TO REQUIRE ALL
OUTOFSTATE RETAILERS TO COLLECT TAXES ON MAIL DELIVERIES THAT EFFORT
STALLED PREVIOUSLY BECAUSE STATE AND LOCAL OFFICIALS COULDN'T AGREE ON
TERMS IN MAY THE SUPREME COURT REFUSED TO FORCE COLLECTIONS UNDER CURRENT
LAW NEGOTIATORS FOR STATES AND THE DIRECT MARKETING ASSOCIATION THEN AGREED
ON A COMPROMISE PLAN TO OFFER SIMPLIFIED AND STANDARDIZED NATIONAL RULES AND
OTHER INCENTIVES TO ENCOURAGE MERCHANTS TO COLLECT TAXES VOLUNTARILY

BUT BOARDS OF THE FEDERATION OF TAX ADMINISTRATORS AND THE MULTISTATE TAX
COMMISSION HAVE REJECTED THE PLAN HARLEY DUNCAN OF THE FTA SAYS STICKING
POINTS AROSE OVER LOCAL TAXES THE STATES' RELUCTANCE TO FORGO FEDERAL
LEGISLATION AND INDICATIONS THAT TOO FEW MERCHANTS WOULD PARTICIPATE IT'S
A SHAME SAYS ROBERT LEVERING THE MARKETERS' COUNSEL A LOT OF HARD WORK
WENT INTO THIS HE ALSO SAYS STATES' EXPECTATIONS OF REVENUE ARE INFLATED

THE STATE GROUPS DON'T FORECLOSE FURTHER TALKS DUNCAN SAYS BUT I THINK
WE'VE SHIFTED TO THE LEGISLATIVE ARENA

STATES MARK SERVICES FOR A SPREADING ARRAY OF SALES AND SPECIAL TAXES

IN RECENT YEARS PUBLIC OUTCRY FORCED FLORIDA AND MASSACHUSETTS TO REPEAL
SWEEPING NEW TAXES ON MOST SERVICES STILL NEEDY STATES ARE MOVING
STEADILY IF GRADUALLY TOWARD BROADLY BASED LEVIES SINCE 1990 THE
FEDERATION OF TAX ADMINISTRATORS SAYS 28 STATES HAVE ADDED TAXES ON
BUSINESS SERVICES SUCH AS OFFICE CLEANING AND COMMERCIAL ART 27 HAVE ADDED
TAXES ON PERSONAL SERVICES SUCH AS GIFT WRAPPING HEALTH CLUBS TUXEDO
RENTALS AND 900NUMBER PHONE CALLS

A SPECIAL LEGISLATIVE SESSION IN ARKANSAS JUST ADDED 14 SERVICES INCLUDING
TANNING SALONS AND PARKING TO ITS TAX BASE MOST STATES TAX AMUSEMENTS
UTILITIES AND LODGING MOST HAVE SHIED FROM TAXING ADVERTISING COMPUTER
SERVICES AND PROFESSIONALS SUCH AS DOCTORS ENGINEERS AND LAWYERS THUS
CREATING LUCRATIVE TARGETS FLORIDA GOV CHILES PROPOSES TO TAX ACCOUNTANTS
LAWYERS AND MOST OTHER PROFESSIONALS

THE ESTEE LAUDER FAMILY IS SET BACK IN ITS BIG ESTATETAX DISPUTE

THE ISSUE HOW TO VALUE STOCK OWNED BY JOSEPH H LAUDER IN EJL CORP THE
COSMETICS COMPANY HE COFOUNDED WITH HIS WIFE AFTER HE DIED IN 1983 EJL
BOUGHT HIS 6756 SHARES FOR 4111 EACH UNDER A 1976 AGREEMENT MEANT TO SET
THE STOCK'S VALUE AND ENSURE FAMILY CONTROL HIS ESTATE PAID ESTATE TAX
BASED ON THAT VALUE BUT THE IRS SOUGHT TAX BASED ON A MARKET VALUE OF
13250 PER SHARE SO THE ESTATE TURNED TO THE TAX COURT IN 1987

NOW CHIEF JUDGE HAMBLEN AGREES WITH THE ESTATE THAT THE 1976 FAMILY PACT
SERVED A LEGITIMATE BUSINESS PURPOSE PRESERVING FAMILY CONTROL BUT THE
JUDGE AGREES WITH THE IRS THAT THE STOCKVALUATION FORMULA IN THE AGREEMENT
WAS DESIGNED ARBITRARILY BY LAUDER'S SON LEONARD A LAUDER THE COMPANY'S
CHIEF EXECUTIVE TO SET AN ARTIFICIALLY LOW PRICE TO MINIMIZE ESTATE TAXES

THE JUDGE HAS REJECTED THE ESTATE'S VALUATION AND HELD THAT FURTHER
PROCEEDINGS ARE NEEDED TO SET THE PROPER MARKET VALUE OF THE STOCK FOR TAX
PURPOSES

FEEL NEGLECTED IF YOU ARE AMONG 11 MILLION FARMERS AND SELFEMPLOYED PEOPLE
WHO DIDN'T GET TAXRETURN PACKAGES IT PROBABLY IS BECAUSE YOU USED A RETURN
PREPARER LAST YEAR YOU SHOULD HAVE RECEIVED AN IRS POSTCARD INSTEAD TAKE
IT TO YOUR PREPARER IF YOU USE ONE AGAIN OR MAIL PART BACK TO THE IRS TO
REQUEST FORMS FOR YOURSELF

WAS IT TOO EASY THE IRS HAS ABANDONED PLANS TO COMPUTE TAXES FOR FILERS
USING A FORM CALLED THE EZ1 ONLY 2 OF 340000 PEOPLE WHO GOT TEST EZ1S
IN 1991 AND 1992 ACCEPTED AN INVITATION TO ANSWER A FEW QUESTIONS AND LET
THE IRS DO THE FIGURING MOST BY FAR WERE HAPPY TO DO THE CHORE THEMSELVES
ON THE ONEPAGE FORM 1040EZ

SELFEMPLOYED FOLKS WHO HAVE GROSS BUSINESS RECEIPTS OF 25000 OR LESS AND
BUSINESS EXPENSES OF 2000 OR LESS MAY USE THE NEW 15LINE SCHEDULE CEZ
ATTACHED TO THEIR PERSONAL RETURNS THE IRS SAYS THREE MILLION FILERS COULD
USE IT

VALUING PERSONAL USE OF COMPANY TRANSPORT HAS BEEN SIMPLIFIED FURTHER

EMPLOYEES GENERALLY ARE TAXABLE ON NONBUSINESS RIDES IN A COMPANY CAR OR
PLANE EMPLOYERS CAN ELECT TO USE SPECIAL RULES TO SIMPLIFY VALUATION OF THE
RIDES AND HOLD DOWN TAXES ON EMPLOYEES BUT SPECIAL VALUATION RULES PROPOSED
IN 1991 PROVOKED COMPLAINTS OF PAPERWORK BURDENS AND OF UNFAIR PENALTIES FOR
EMPLOYEES IF EMPLOYERS MADE MINOR ERRORS NOW FINAL IRS RULES PROVIDE
WELCOME RELIEF SAYS WASHINGTON LAWYER MARY HEVENER OF LEE TOOMEY & KENT

THE PROPOSED RULES WOULD HAVE REQUIRED EMPLOYERS TO GIVE DETAILED NOTICES TO
EMPLOYEES ABOUT VALUATIONS THOSE THAT DIDN'T COMPLY WOULD BE BARRED FROM
USING THE SPECIAL RULES MULTIPLYING EMPLOYEES' TAXES BUT THE FINAL RULES
SCRAP A NOTICE REQUIREMENT AS UNNEEDED UNDER THE PROPOSED RULES EMPLOYERS
COULDN'T USE THE SPECIALVALUATION PROCESS TO CORRECT MISTAKES MADE IN
VALUING A RIDE BUT THE FINAL RULES MAKE SPECIAL VALUATION AVAILABLE IN
CASES OF NONCONTROL EMPLOYEES

TREASURY OFFICIALS SAY MANY MORE EMPLOYERS WILL BE ABLE TO USE THE REVISED
SPECIALVALUATION RULES

BRIEFS THE IRS HAS EXPANDED PERSONAL TAX TABLES TO INCOME OF UP TO
100000 SO 14 MILLION MORE FILERS CAN USE THE TABLES  THE STANDARD
DEDUCTION FOR BUSINESS USE OF A CAR IN 1993 REMAINS 28 CENTS A MILE IRS
REVENUE PROCEDURE 92104 SAYS 9301060151 930106 AQUARION CO UNIT RATE
INCREASE

BRIDGEPORT CONN AQUARION CO SAID ITS WATER SERVICE UNIT PLANS TO FILE
FOR A 13 MILLION OR 24 RATE INCREASE WITH CONNECTICUT REGULATORS THAT
WOULD INCREASE A TYPICAL RESIDENTIAL CUSTOMER'S QUARTERLY BILL TO 90 FROM
73

AQUARION SAID ITS BHC UNIT SERVING 500000 CONNECTICUT CUSTOMERS NEEDS THE
INCREASE TO COVER THE COSTS OF A MULTIMILLIONDOLLAR FILTRATION PLANT
RELATED OPERATING AND MAINTENANCE EXPENSES AND OTHER PROJECTS REQUIRED TO
COMPLY WITH FEDERAL WATER STANDARDS 9301060150 930106 MOODY'S HOSPITAL
BOND RATINGS

NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT RAISED FIVE RATINGS AND
LOWERED TWO RATINGS ON TAXEXEMPT HOSPITAL REVENUE BONDS IN THE 1992 FOURTH
QUARTER

THE RATIO OF UPGRADES TO DOWNGRADES RUNS COUNTER TO THE NEGATIVE CREDIT
QUALITY TREND FOR THE PAST FEW YEARS THE RATINGS COMPANY SAID DURING THE
FOURTH QUARTER MOODY'S ALSO ASSIGNED 78 OTHER HOSPITAL REVENUE BOND RATINGS
THAT WERE EITHER INITIAL RATINGS OR CONFIRMATIONS OF EXISTING RATINGS

IN ALL OF 1992 HOWEVER DOWNGRADES OF THESE BONDS EXCEEDED UPGRADES 28 TO
17 CONTINUING THE NEGATIVE TREND ALTHOUGH MOODY'S SAID THERE HAS BEEN SOME
STABILIZATION IN THE HOSPITAL INDUSTRY THE FIRM EXPECTS THE NEGATIVE TREND
TO CONTINUE AS HOSPITALS STRUGGLE WITH INCREASING COMPETITION AND COST
INFLATION OUTSTRIPPING REIMBURSEMENT FROM GOVERNMENT AND PRIVATE INSURERS
9301060149 930106 UNION CAMP ACQUIRES COMPANY

WAYNE NJ UNION CAMP CORP SAID IT ACQUIRED PUERTO RICO CONTAINER
CORP A LEADING MANUFACTURER OF CORRUGATED CONTAINERS IN PUERTO RICO WITH
ANNUAL PRODUCTION CAPACITY OF 28000 TONS

TERMS WEREN'T DISCLOSED UNION CAMP WILL SUPPLY THE PLANT WITH LINERBOARD
THE RAW MATERIAL FOR BOXES FROM ITS PLANTS IN SAVANNAH GA AND
PRATTVILLE ALA AS WELL AS INTRODUCE OTHER PACKAGING PRODUCTS TO THE
PRODUCT LINE

UNION CAMP MAKES LINERBOARD AND CORRUGATED CONTAINERS AS WELL AS UNCOATED
BUSINESS PAPERS CHEMICALS AND WOOD PRODUCTS 9301060148 930106 PREIT'S
PURCHASE IN FLORIDA

FORT WASHINGTON PA PENNSYLVANIA REAL ESTATE INVESTMENT TRUST SAID IT
ACQUIRED INTERESTS IN TWO FLORIDA GARDEN APARTMENT HOUSE PROPERTIES
CONTAINING 696 UNITS FOR 154 MILLION PREIT DECLINED TO NAME THE SELLERS

PREIT BOUGHT 100 OF THE COBBLESTONE APARTMENTS POMPANO BEACH FLA THE
384UNIT PROPERTY IS SITUATED ON 27 ACRES AS PART OF THE COBBLESTONE
PURCHASE PREIT WILL ASSUME 93 MILLION IN MORTGAGE DEBT AT VARYING
INTEREST RATES

PREIT WHICH OWNS 4489 APARTMENT UNITS ALSO PURCHASED A 40 INTEREST IN
THE 312UNIT 40ACRE WINDSONG APARTMENTS ALTAMONTE SPRINGS FLA THE REAL
ESTATE INVESTMENT TRUST WILL ASSUME 16 MILLION IN MORTGAGE DEBT AT 85 AS
PART OF THE PURCHASE 9301060147 930106 COMPUSA POSTS GAINS

DALLAS COMPUSA SAID SALES INCREASED 64 FOR ITS SECOND QUARTER ENDED
DEC 26 TO 3245 MILLION FROM 1976 MILLION IN THE YEAREARLIER PERIOD

THE COMPANY WHICH OPERATES 38 COMPUTER RETAIL STORES SAID SALES AT STORES
OPEN FOR AT LEAST A YEAR ROSE 16

FOR THE FIRST SIX MONTHS OF FISCAL 1993 SALES ROSE 60 TO 5879 MILLION
FROM 3668 MILLION SAMESTORE SALES WERE UP 19 FOR THE FIRST HALF
9301060146 930106 AMBER'S STORES SALES UP

FOR THE 11 MONTHS ENDED LAST THURSDAY SALES GREW 59 TO 387 MILLION FROM
243 MILLION SALES IN STORES OPEN AT LEAST ONE YEAR INCREASED 84
9301060145 930106 INSIDER TRADING SPOTLIGHT

BASED ON ACTUAL TRANSACTION DATES IN REPORTS FILED THROUGH LAST FRIDAY
WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE
MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND
PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS
VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES
BEING ACQUIRED

CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER
9301060144 930106 OTC FOCUS INDEX REBOUNDS 254 FROM MONDAY AS
TECHNOLOGY ISSUES LEAD THE WAY  BY SARA CALIAN STAFF REPORTER OF
THE WALL STREET JOURNAL

NEW YORK THE OVERTHECOUNTER MARKET ROSE LED BY SOME TECHNOLOGY STOCKS
REBOUNDING FROM MONDAY'S PROFITTAKING

THE NASDAQ COMPOSITE INDEX CLIMBED 254 OR 038 TO 67434 ADVANCERS
BARELY OUTNUMBERED DECLINERS 1296 TO 1293 ON TOTAL VOLUME OF 2294 MILLION
SHARES UP FROM MONDAY'S 1889 MILLION

YOU HAD INVESTORS SELLING THESE COMPUTER STOCKS ON MONDAY SAID GARY
ROSENBACH MANAGER OF EQUITY TRADING AT NEEDHAM & CO BUT OVERALL BUYERS
CAME BACK AND ARE STICKING WITH THE WINNERS OVERTHECOUNTER TECHNOLOGY
STOCKS SUCH AS INTEL AND CISCO SYSTEMS

INTEL JUMPED 4 1/2 TO 91 MICROSOFT ADVANCED 1 3/8 TO 86 1/2 AND DELL
COMPUTER ROSE 1 3/8 TO 46 5/8 SUN MICROSYSTEMS INCREASED 2 3/4 TO 36 3/8
AND ORACLE SYSTEMS ROSE 3/4 TO 29 3/8 BOTH STOCKS ARE AT 52WEEK HIGHS
CISCO ADDED 2 1/8 TO 80 1/8

SOME NASDAQ STOCKS STILL ARE SUFFERING FROM YEAREND SELLING OTC STOCKS
SUCH AS THE BIOTECH ONES ARE SCUFFING THEIR FEET A LITTLE SAID AMY FOSTER
A SENIOR TRADER AT KIDDER PEABODY & CO BIOTECH BELLWETHER STOCK AMGEN
TOPPLED 2 7/8 TO 67 3/4 AND SYNERGEN FELL 2 1/2 TO 59 KIDDER PEABODY
INITIATED COVERAGE WITH A HOLD RATING ON BIOGEN WHICH DROPPED 2 TO 45
3/4

VIDEOTELECOM CORP PLUNGED 2 1/2 TO 7 3/4 AFTER MONDAY'S CLOSING THE
AUSTIN TEXAS COMPANY SAID IT EXPECTS TO REPORT 1992 RESULTS BELOW
ANALYSTS' PROJECTIONS THE COMPANY SAID ANALYSTS ESTIMATED FOURTHQUARTER
EARNINGS OF NINE CENTS TO 11 CENTS A SHARE AND EARNINGS OF 27 CENTS OR 28
CENTS FOR THE FULL YEAR

VIDEOTELECOM'S DISAPPOINTING NEWS SUNK SHARES OF ITS VIDEOCONFERENCING
RIVAL PICTURETEL OF PEABODY MASS WHICH DROPPED 1 1/4 TO 24 ANOTHER
MAJOR PLAYER IN VIDEO CONFERENCING EQUIPMENT SAN JOSE CALIF'S COMPRESSION
LABS EASED 1/8 TO 12 1/2

NELLCOR INC DROPPED 2 TO 30 COWEN & CO LOWERED ITS SHORTTERM INVESTMENT
RATING ON NELLCOR TO NEARTERM HOLD FROM A NEARTERM BUY THE FIRM
MAINTAINS ITS LONGTERM BUY RATING ON THE STOCK COWEN & CO DOWNGRADED
THE HAYWARD CALIF COMPANY ON A VALUATION BASIS AS THE STOCK HAS GOTTEN
A LITTLE AHEAD OF ITSELF A COWEN SPOKESMAN SAID NELLCOR MAKES ELECTRONIC
PATIENT MONITORING AND MEASUREMENT INSTRUMENTS

REGENERON PHARMACEUTICALS CLIMBED 2 3/4 TO 14 3/4 DILLON READ & CO
BIOTECHNOLOGY ANALYST LARRY BLOOM REITERATED HIS BUY RECOMMENDATION ON THE
STOCK AND CALLED REGENERON HIS NO 1 STOCK PICK FOR 1993 MR BLOOM SAID
THREE ANIMAL STUDIES OF REGENERON'S BRAINDERIVED NEUROTROPHIC FACTOR OR
BDNF PUBLISHED IN LAST WEEK'S EDITION OF THE SCIENTIFIC JOURNAL NATURE BODE
WELL FOR REGENERON'S PARTNERSHIP WITH AMGEN FOR THE TREATMENT OF
NEUROLOGICAL DISORDERS

IMMULOGIC PHARMACEUTICAL JUMPED 3/4 TO 12 1/4 VECTOR SECURITIES
INTERNATIONAL BIOTECHNOLOGY ANALYST GREGORY BROWN INITIATED COVERAGE OF THE
STOCK WITH A BUY RECOMMENDATION SAYING THE COMPANY COULD EMERGE AS A
LEADER IN THE AREA OF IMMUNE SYSTEM MODULATION

AMBER'S STORES ROSE 1 3/4 TO 1 THE COMPANY SAID SAMESTORE SALES OR SALES
IN STORES OPERATING A YEAR AGO WERE UP 181 IN DECEMBER TOTAL DECEMBER
SALES MORE THAN DOUBLED TO 83 MILLION THE SPECIALTY RETAILER SAID

GENTA LEAPED 1 1/2 TO 10 1/2 THE SAN DIEGO COMPANY FILED AN INVESTIGATIONAL
NEW DRUG APPLICATION DEC 29 WITH THE FOOD AND DRUG ADMINISTRATION TO BEGIN
TESTING G201 A TOPICAL DRUG FOR TREATMENT OF INFLAMMATION G201 IS A
PATENTED NONSTEROIDAL ANTIINFLAMMATORY THAT IS INTENDED FOR THE TREATMENT
OF INFLAMMATION IN PSORIASIS ACNE AND ATOPIC DERMATITIS

BIRTCHER MEDICAL SYSTEMS FELL 1 3/8 TO 6 THE IRVINE CALIF COMPANY SAID
IT EXPECTS TO POST DISAPPOINTING RESULTS FOR THE SECOND QUARTER ENDED DEC
31 THE COMPANY EXPECTS TO POST A LOSS ON SALES OF ABOUT 11 MILLION IN THE
YEARAGO QUARTER BIRTCHER MEDICAL HAD SALES OF 14 MILLION AND A LOSS OF 22
CENTS A SHARE WHICH REFLECTED A RESTRUCTURING CHARGE AND A MERGER WITH
SOLOS ENDOSCOPY BIRTCHER MEDICAL BLAMED LOWERTHANANTICIPATED
INDUSTRYWIDE DEMAND FOR ENDOSCOPIC EQUIPMENT AND RELATED SURGICAL
INSTRUMENTATION IN RECENT MONTHS

MEDIMMUNE INC TUMBLED 4 TO 19 1/4 LATE MONDAY AFTERNOON THE GAITHERSBERG
MD COMPANY SAID THAT UNEXPECTED RESEARCH RESULTS WITH MEDI 488 HAVE CAUSED
ITS COLLABORATOR MERCK & CO TO INITIATE A SERIES OF NEW LABORATORY
EXPERIMENTS AND AN OVERALL REVIEW OF THE PROGRAM MEDI 488 IS A HUMAN
MONOCLONAL ANTIBODY THAT IS THE SUBJECT OF A COLLABORATIVE RESEARCH PROGRAM
BETWEEN MEDIMMUNE AND MERCK TO ASSESS ITS POTENTIAL TO PREVENT HIV
INFECTION MEDIMMUNE SAID THE COMPANY SAID IT AND MERCK PLAN TO COMPLETE
THE PROGRAM REVIEW WITHIN TWO MONTHS AND THEN DECIDE WHETHER TO CONTINUE THE
PROGRAM 9301060143 930106 INTERNATIONAL FAMILY EXTENDS BID

VIRGINIA BEACH VA INTERNATIONAL FAMILY ENTERTAINMENT INC SAID IT IS
EXTENDING BY ONE DAY TO TUESDAY ITS OFFER TO ACQUIRE LONDON'S TVS
ENTERTAINMENT PLC

THE CABLE ENTERTAINMENT BROADCASTER SAID THAT TO DATE IT HAS RECEIVED 789
OF THE ORDINARY SHARE CAPITAL OF TVS AND 426 OF THE PREFERENCE SHARE
CAPITAL TOTALING 726 OF TVS VOTING RIGHTS

AT THE TIME THE DEAL WAS ANNOUNCED THE OFFER WAS VALUED AT 685 MILLION
BUT THAT VALUE IS SUBJECT TO CHANGE AS A RESULT OF CURRENCY FLUCTUATIONS
9301060142 930106 TRANS WORLD MUSIC SALES RISE

ALBANY NY TRANS WORLD MUSIC CORP SAID SALES FOR THE NINEWEEK HOLIDAY
SEASON ENDED JAN 2 ROSE 12 TO 148 MILLION FROM 132 MILLION A YEAR
EARLIER

COMPARABLE STORE SALES ROSE 1 THE MUSIC RETAILER SAID DECEMBER FINISHED
WITH STRONG COMPARABLE STORE SALES REPRESENTING A SIGNIFICANT IMPROVEMENT
OVER NOVEMBER'S MIDSINGLE DIGIT DECREASE

SALES FOR THE 11MONTH PERIOD ROSE 11 TO 424 MILLION FROM 383 MILLION
COMPARABLE STORE SALES WERE APPROXIMATELY THE SAME AS THE YEAR EARLIER

THE COMPANY SAID IT HAS OPENED 94 AND CLOSED 26 STORES THUS FAR IN FISCAL
1992 THE COMPANY OPERATES 665 STORES UNDER SEVERAL NAMES INCLUDING RECORD
TOWN TAPE WORLD COCONUTS AND SATURDAY MATINEE 9301060141 930106 VARIAN
PREDICTS DROP IN ITS 1STPERIOD NET SHARES PLUNGE 96

PALO ALTO CALIF VARIAN ASSOCIATES INC ESTIMATED THAT EARNINGS FOR ITS
FISCAL FIRST QUARTER WILL BE LESS THAN THE 76 MILLION OR 40 CENTS A
SHARE IT EARNED A YEAR EARLIER SENDING ITS STOCK DOWN 96

VARIAN A MAKER OF ELECTRONICS EQUIPMENT AND EQUIPMENT USED IN SEMICONDUCTOR
MANUFACTURING DIDN'T GIVE A SPECIFIC ESTIMATE SAYING ONLY THAT EARNINGS
FOR THE QUARTER ENDED SUNDAY WOULD BE SOMEWHAT SHORT OF ITS PROFIT A YEAR
EARLIER

ANALYSTS HAD BEEN PROJECTING EARNINGS FOR THE PERIOD AT 35 CENTS TO 40 CENTS
A SHARE AND THE UNCERTAINTY ABOUT THE SIZE OF THE EARNINGS DECLINE
APPARENTLY RATTLED SOME INVESTORS VARIAN'S SHARES WERE DOWN 4125 TO
3875 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE

J TRACY O'ROURKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE POOR
GLOBAL ECONOMY AND PRICING PRESSURE CONTINUE TO DRAG DOWN VARIAN'S RESULTS
HE SPECIFICALLY CITED THE JAPANESE MARKET FOR SEMICONDUCTOR EQUIPMENT AS ONE
AREA WHERE SALES ARE LAGGING

MR O'ROURKE HAD SAID IN NOVEMBER THAT THE COMPANY EXPECTED FLAT SALES FOR
FISCAL 1993 BUT ADDED THAT PERSHARE EARNINGS COULD GROW AS MUCH AS 40 TO
50 FROM A YEAR EARLIER BECAUSE OF AN IMPROVING PRODUCT MIX YESTERDAY MR
O'ROURKE REITERATED THAT VARIAN STILL IS LIKELY TO REPORT CONSIDERABLY
HIGHER EARNINGS FOR THE FULL FISCAL YEAR DESPITE THE TOUGH FIRST QUARTER
WE'RE STICKING WITH OUR PROJECTIONS FOR THE FULL YEAR A SPOKESMAN SAID

FOR THE YEAR ENDED OCT 2 VARIAN HAD NET INCOME OF 386 MILLION OR 204
A SHARE ON SALES OF 13 BILLION SALES IN THE 1992 FIRST QUARTER TOTALED
3042 MILLION

VARIAN ALSO ANNOUNCED THAT IT HAS RECEIVED ORDERS TOTALING ABOUT 25 MILLION
FROM SEVERAL SOUTH KOREAN SEMICONDUCTOR MAKERS WHICH IT DECLINED TO
IDENTIFY MR O'ROURKE CALLED THE ORDERS A BRIGHT SPOT IN WHAT OTHERWISE
WAS A POOR FIRST QUARTER FOR VARIAN'S SEMICONDUCTOR EQUIPMENT BUSINESS
9301060140 930106 INTERNATIONAL URUGUAY'S ANNUAL INFLATION FALLS

MONTEVIDEO URUGUAY THE COUNTRY'S INFLATION RATE ROSE 33 IN DECEMBER
BRINGING THE 1992 TOTAL TO 589 THE LOWEST IN FIVE YEARS THE NATIONAL
STATISTICS INSTITUTE SAID

BY COMPARISON URUGUAY'S COST OF LIVING ROSE 815 IN 1991

THE GOVERNMENT EXPECTS INFLATION TO DECLINE TO 30 IN 1993 9301060139
930106 WEINGARTEN REALTY INVESTORS

HOUSTON WEINGARTEN REALTY INVESTORS SAID IT WILL REDEEM ITS CONVERTIBLE
CAPITAL DEBENTURES DUE 2009 FOR COMMON SHARES AT A PRICE OF 3350 A SHARE
EQUIVALENT TO ABOUT 2985 SHARES FOR EACH 1000 PRINCIPAL AMOUNT BEFORE
THE CLOSE OF BUSINESS JAN 22

THE REAL ESTATE INVESTMENT TRUST SAID DEBENTURE HOLDERS WHO DON'T ELECT TO
CONVERT ON THOSE TERMS CAN ALTERNATIVELY REDEEM THEIR DEBENTURES AT 2868
SHARES FOR EACH 1000 PRINCIPAL AMOUNT BY JAN

IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WEINGARTEN
SHARES WERE QUOTED AT 36625 UNCHANGED

TEXAS COMMERCE BANK NATIONAL ASSOCIATION IS THE PAYING AND CONVERSION AGENT
FOR THE DEBENTURES WEINGARTEN SAID 9301060138 930106 INTERNATIONAL 
JAPAN IS WEIGHING NEW STEPS AIMED AT ENDING SLUMP  SPECIAL TO
THE WALL STREET JOURNAL

TOKYO AMID GROWING PRESSURES AT HOME AND ABROAD TO REVERSE JAPAN'S
ECONOMIC SLOWDOWN GOVERNMENT OFFICIALS INDICATED THEY WILL CONSIDER AN
ADDITIONAL STIMULUS PACKAGE SOON AFTER THE APRIL START OF THE COMING FISCAL
YEAR

PRIME MINISTER KIICHI MIYAZAWA SAID TUESDAY THE GOVERNMENT CAN'T BE
CONFIDENT THAT MEASURES TAKEN SO FAR WILL BE ENOUGH TO SECURE AN ECONOMIC
RECOVERY

SPEAKING AT A GATHERING OF MAJOR JAPANESE ECONOMIC ORGANIZATIONS MR
MIYAZAWA SAID THE GOVERNMENT MUST WATCH ECONOMIC DEVELOPMENTS CAREFULLY OVER
THE COMING SEVERAL MONTHS AND TAKE ADDITIONAL MEASURES IF NECESSARY
JAPAN'S CHIEF ECONOMIC PLANNER SAID MR MIYAZAWA'S STATEMENTS WENT ONE STEP
FURTHER THAN HIS PREVIOUS STATEMENTS ON THE SUBJECT

OFFICIALS HAVE FENDED OFF CALLS FOR NEW STIMULUS MEASURES OVER THE PAST YEAR
BY SAYING THE IMPACT OF PREVIOUS STEPS MUST BE GIVEN TIME TO MATERIALIZE
THE GOVERNMENT MAINTAINED THAT CAUTIOUS STANCE AFTER ITS MARCH DECISION TO
FRONT LOAD PUBLIC WORKS OUTLAYS DURING THE FIRST HALF OF THE CURRENT
FISCAL YEAR AS WELL AS FOR THE RECORD 107TRILLIONYEN 854 BILLION
STIMULUS PACKAGE ANNOUNCED ON AUG

BUT THE GOVERNMENT IS NOW DRAWING A SCENARIO IN WHICH A NEW PACKAGE WILL BE
ADOPTED BEFORE THE BUDGET FOR THE COMING FISCAL YEAR FROM APRIL HAS TIME TO
SHOW RESULTS

HAJIME FUNADA HEAD OF THE ECONOMIC PLANNING AGENCY SAID THE NEED FOR
ADDITIONAL MEASURES WILL PROBABLY BE DECIDED AROUND MAY WHEN CORPORATE
RESULTS FOR THE FISCAL YEAR ENDING IN MARCH BEGIN COMING OUT

GAISHI HIRAIWA THE HEAD OF THE JAPAN FEDERATION OF ECONOMIC ORGANIZATIONS
ALSO SAID THAT CORPORATE RESULTS COULD PROMPT THE NEXT EMERGENCY PACKAGE
WHICH HE SAID SHOULD INCLUDE DISCOUNT RATE CUTS AND TAX CUTS

FIRSTHALF PRETAX PROFITS FOR MAJOR COMPANIES FELL ROUGHLY 30 FROM THE YEAR
BEFORE AND THE SECOND HALF SHOWS NO SIGNS OF A REBOUND

ONE ANALYST SAID THE RULING LIBERAL DEMOCRATIC PARTY WILL WANT TO GO INTO
THE GENERAL ELECTION DURING THE SECOND HALF OF 1993 WAVING AN INCOME TAX
CUT 9301060137 930106 RETAIL SALES CLIMBED 109 IN DECEMBER 
ACCORDING TO SURVEY

NEW YORK THE JOHNSON REDBOOK SURVEY OF THE NATION'S RETAILERS FOUND THAT
SALES ROSE A SEASONALLY ADJUSTED 109 IN DECEMBER FROM A YEAR EARLIER BUT
THAT RETAILERS ARE WARY ABOUT PROSPECTS FOR THE EARLY PART OF 1993

THE SURVEY TALLIES GROSS SALES FROM A SAMPLE 25 STORES IN THE CHAIN
DEPARTMENT AND DISCOUNT CATEGORIES THE SURVEY DOES NOT PROVIDE THE MORE
COMMON INDUSTRY MEASURE OF SAMESTORE COMPARISONS

ACCORDING TO JOHNSON REDBOOK HEAVY SPENDING DURING THE HOLIDAY SEASON
LARGELY ENDED UP ON CREDIT CARDS

THERE HASN'T BEEN MUCH OF A CHRISTMAS OVER THE PAST FEW YEARS SO WE THINK
THERE WAS A GREAT DEAL OF PENTUP DEMAND A JOHNSON REDBOOK SPOKESMAN SAID
AND WITH A MAJORITY OF PURCHASES ENDING UP ON PLASTIC WE ANTICIPATE THAT
CONSUMERS MAY WANT TO SPEND THE NEXT COUPLE MONTHS PAYING DOWN SOME OF THE
HIGHINTEREST FLOATING DEBT

COMPARISONS WITH YEAREARLIER FIGURES ALSO MAY SUFFER FROM THE EARLY 1992
SURGE IN RETAIL SALES ACCORDING TO JOHNSON REDBOOK WHICH PREDICTS THAT
GROSS SALES WILL INCREASE ABOUT 3 TO 4 IN THE FIRST QUARTER OF 1993

SALES IN DECEMBER ROSE A SEASONALLY ADJUSTED 14 FROM NOVEMBER THE SURVEY
FOUND

THE SURVEY FOUND SALES STRONGEST IN THE SOUTHEAST FOLLOWED BY THE EAST AND
CENTRAL REGIONS 9301060136 930106 INTERNATIONAL GERMAN MACHINERY
ORDERS FALL

FRANKFURT GERMAN PLANT AND MACHINERY ORDERS FELL 13 IN NOVEMBER FROM THE
YEAREARLIER MONTH ON REAL OR INFLATIONADJUSTED TERMS LED BY A SHARP 24
DROP IN DOMESTIC ORDERS

FOREIGN ORDERS WERE STAGNANT ACCORDING TO THE VDMA GERMAN MACHINERY AND
PLANT CONSTRUCTION ASSOCIATION

IN A THREEMONTH COMPARISON WHICH ELIMINATES DISTORTIONS FROM SINGLE LARGE
ORDERS NEW ORDERS FELL A REAL 8 IN SEPTEMBER THROUGH OCTOBER FROM THE
YEAREARLIER PERIOD DOMESTIC DEMAND DROPPED 9 WHILE FOREIGN ORDERS FELL
7

THE GERMAN PLANT AND MACHINERY INDUSTRY COMPETES WITH THE AUTOMOBILE
INDUSTRY AS THE NATION'S TOP EXPORT SECTOR 9301060135 930106 CHILE
INFLATION RATE SLOWED IN '92

SANTIAGO CHILE THE COST OF LIVING IN CHILE ROSE 01 IN DECEMBER
BRINGING THE ACCUMULATED INCREASE FOR 1992 TO 127 DOWN FROM 187 IN
1991 THE GOVERNMENT REPORTED

THE 1992 FIGURE ANNOUNCED BY THE GOVERNMENT'S NATIONAL STATISTICS INSTITUTE
FELL BELOW THE INFLATION GOAL OF 13 SET BY THE GOVERNMENT FOR THE YEAR

FINANCE MINISTER ALEJANDRO FOXLEY HAS SAID THAT INFLATION WILL FURTHER DROP
THIS YEAR TO AROUND 11

THE DECEMBER COST OF LIVING INCREASE COMPARES WITH A 12 GAIN IN THE
YEAREARLIER MONTH 9301060134 930106 WHO'S NEWS DIGITAL EQUIPMENT 
SENIOR EXECUTIVE PLANS TO RETIRE  BY JOHN R WILKE STAFF
REPORTER OF THE WALL STREET JOURNAL

DIGITAL EQUIPMENT CORP'S SENIOR VICE PRESIDENT JOHN F SMITH LONG THE
HIGHESTRANKING EXECUTIVE AFTER COMPANY FOUNDER AND FORMER PRESIDENT KENNETH
H OLSEN UNEXPECTEDLY SAID HE WOULD RETIRE

MR SMITH'S MOVE IS THE LATEST IN A SERIES OF HIGHLEVEL DEPARTURES FROM
DIGITAL THE 57YEAROLD EXECUTIVE HAD RECENTLY TAKEN ON A SERIES OF INTERIM
ASSIGNMENTS FOR ROBERT B PALMER WHO BECAME PRESIDENT AND CHIEF EXECUTIVE
IN OCTOBER SUCCEEDING MR OLSEN MR OLSEN WAS FORCED OUT BY THE COMPUTER
MAKER'S BOARD IN THE MIDST OF STEEP LOSSES AND MANAGEMENT TURMOIL

MR SMITH SERVED THE MAYNARD MASS COMPANY FOR 34 YEARS THROUGH A
SUCCESSION OF SENIOR POSITIONS AND HAD WORKED CLOSELY WITH THE SOMETIMES
IRASCIBLE AND AUTOCRATIC MR OLSEN SINCE 1987 BUT HIS ROLE IN DIGITAL'S
FUTURE WAS UNCLEAR AND HE SAID HIS POST AS SENIOR VICE PRESIDENT FOR
OPERATIONS WON'T BE FILLED

NONETHELESS MR SMITH INSISTED THAT HIS DECISION TO RETIRE WAS HIS OWN AND
WAS UNRELATED TO MR PALMER'S APPOINTMENT TO LEAD THE COMPUTER COMPANY MR
PALMER'S ASCENSION HAD NOTHING TO DO WITH MY DECISION TO RETIRE IN FACT
I WAS THINKING ABOUT IT BEFORE THE CHANGES HE SAID

MR SMITH ONCE HAD BEEN SEEN AS A POSSIBLE SUCCESSOR TO MR OLSEN BUT WAS
BYPASSED AS THE BOARD CONSIDERED CANDIDATES FROM THE NEXT GENERATION OF
MANAGERS

COURTLY AND EVENTEMPERED MR SMITH PLAYED A CRITICAL BEHINDTHESCENES
ROLE THAT HELPED STEADY THE COMPANY'S SENIOR RANKS DURING THE DIFFICULTIES
PRECEDING MR OLSEN'S DEPARTURE INSIDERS SAY HE SOMETIMES SHIELDED
OPERATIONS FROM SOME OF MR OLSEN'S MORE ERRATIC DECISIONS

YET HE REMAINED FIERCELY LOYAL TO DIGITAL AND DEFENDED MR OLSEN TO
OUTSIDERS DESPITE INCREASING TENSION BETWEEN THE TWO THE INSIDERS SAY MR
SMITH SUGGESTED THAT HE SOME DAY MIGHT LOOK FOR ANOTHER JOB AFTER HIS
RETIREMENT BUT RULED OUT EVER COMPETING DIRECTLY WITH DIGITAL

IN A TELEPHONE CONFERENCE WITH REPORTERS MR SMITH SAID DIGITAL'S WORK
FORCE REDUCTIONS WERE CONTINUING AND ESTIMATED THAT THE PAYROLL HAD DECLINED
TO ABOUT 100000 AS OF THE END OF THE SECOND QUARTER WHICH ENDED DEC 31
FROM 108500 AT THE END OF THE FIRST QUARTER WE NEED TO BE A COMPANY OF
85000 TO 90000 AND HE SUGGESTED THAT THE COMPANY WOULD MOVE QUICKLY TO
ACHIEVE THAT GOAL

MR SMITH'S WORK FORCE PROJECTIONS ARE IN LINE WITH THE COMPANY'S RECENT
ESTIMATES BUT SUGGEST DIGITAL EQUIPMENT MAY HIT ITS GOALS SOONER THAT
EXPECTED

MR SMITH SAID HE BELIEVED THE MAJOR OLDLINE COMPUTER MAKERS INCLUDING
DIGITAL FAILED TO REACT QUICKLY ENOUGH TO FUNDAMENTAL CHANGES IN TECHNOLOGY
THAT REQUIRED SMALLER MANUFACTURING PAYROLLS AND PLANT CAPACITY THE
INDUSTRY GOT CAUGHT WITH ITS PANTS DOWN AND DIDN'T UNDERSTAND THE CHANGES
AT FIRST HE SAID

IN THE PAST YEAR MR SMITH WHILE CONTINUING AS SENIOR VICE PRESIDENT HAD
TAKEN ON KEY INTERIM ASSIGNMENTS FROM MR PALMER HE TOOK OVER DIGITAL'S
HUGE EUROPEAN UNIT FOR SEVERAL MONTHS AFTER PIER CARLO FALLOTTI ITS
PRESIDENT RESIGNED AND HE WAS CHIEF OF US SALES FOLLOWING THE
REASSIGNMENT LAST OCTOBER OF DONALD ZERESKI

BUT THESE POSITIONS WERE THEN GIVEN TO OTHER EXECUTIVES MR PALMER LAUDED
MR SMITH'S PIVOTAL ROLE IN DIGITAL'S HISTORY AND SAID HE SERVED THE
COMPANY WITH DISTINCTION AND ABLY HANDLED WHATEVER MANAGEMENT ROLE HE WAS
ASKED TO TAKE

MICHAEL MAYNARD OF INTEGRATED MANAGEMENT RESOURCES A CONSULTANT IN STOW
MASS CALLED MR SMITH ONE OF THE LAST OF THE OLD GUARD BUT SAID HE HAD
CONTINUED TO PLAY A KEY ROLE THROUGH THE UNCERTAINTY OF RECENT MONTHS
PEOPLE INSIDE THE COMPANY SAY THAT TO GET MOST THINGS SIGNED OFF YOU STILL
HAVE TO WALK IT PERSONALLY TO JACK SMITH TO MAKE SURE IT HAPPENS MR
MAYNARD SAID 9301060133 930106 AMERICAN AIRLINES' TRAFFIC RISES

FORT WORTH TEXAS AMERICAN AIRLINES A UNIT OF AMR CORP REPORTED THAT
DECEMBER TRAFFIC ROSE 76 FROM DECEMBER 1991

THE CARRIER FLEW 803 BILLION REVENUE PASSENGER MILES UP FROM LAST
DECEMBER'S 746 BILLION A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER
FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL SLIGHTLY TO
60 FROM 612

FOR THE YEAR TRAFFIC INCREASED 185 TO 9741 BILLION REVENUE PASSENGER
MILES FROM 8222 BILLION FOR 1991 LOAD FACTOR ALSO GAINED TO 637 FROM
617 9301060132 930106 INTERNATIONAL JAPAN DOMESTIC SALES OF MOTOR
VEHICLES DECLINED IN DECEMBER  SPECIAL TO THE WALL STREET JOURNAL

TOKYO JAPAN'S DOMESTIC SALES OF CARS TRUCKS AND BUSES FELL 82 IN
DECEMBER FROM THE YEAREARLIER MONTH AND DROPPED 10 FROM NOVEMBER TO
388902 UNITS THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION REPORTED

JAPANESE MOTOR VEHICLE SALES HAVE FALLEN FROM YEAREARLIER LEVELS IN EVERY
MONTH FOR THE PAST 20 MONTHS WITH THE EXCEPTION OF JUNE 1992 IN NOVEMBER
SALES FELL 12 FROM THE YEAR BEFORE FOLLOWING A 14 DROP IN OCTOBER

THE ASSOCIATION SAID MOTOR VEHICLE SALES FOR 1992 TOTALED 5333785 UNITS
DOWN 72 FROM THE YEAR EARLIER FOR THE SECOND CONSECUTIVE YEARLY DECLINE

AN ASSOCIATION OFFICIAL SAID HE'S TRYING TO PUT THE BEST POSSIBLE FACE ON
THE DECEMBER DECLINE FROM THE YEAR EARLIER SINCE IT FOLLOWS TWO MONTHS OF
DOUBLEDIGIT DECLINES BUT LOOK AT WHERE I'M COMING FROM HE SAID WE'VE
BEEN IN A SLUMP FOR SO LONG

SALES WERE DOWN IN DECEMBER FROM THE YEAR BEFORE IN ALL VEHICLE CATEGORIES
MEDIUMSIZE PASSENGER CAR SALES FELL FOR THE FIFTH MONTH IN A ROW

BY MAKER INDUSTRY LEADER TOYOTA MOTOR CORP SOLD 159179 UNITS DOWN 49
ON YEAR NISSAN MOTOR CO'S SALES FELL 46 TO 83623 UNITS AND HONDA MOTOR
CO'S DROPPED 254 TO 28983 UNITS BUT MITSUBISHI MOTORS CORP SOLD 42497
UNITS EDGING UP 08 FROM THE YEAR EARLIER AND FUJI HEAVY INDUSTRIES LTD
MAKER OF SUBARU CARS SOLD 10790 UNITS UP 221 9301060131 930106
BUSINESS BRIEF FORD PLANS TO BOOST PRODUCTION CAPACITY FOR EXPLORER
VEHICLE

DETROIT FORD MOTOR CO PLANS TO BOOST PRODUCTION CAPACITY FOR ITS
HOTSELLING EXPLORER SPORT UTILITY VEHICLE

ALEXANDER TROTMAN HEAD OF FORD'S WORLDWIDE AUTO OPERATIONS TOLD REPORTERS
AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW THAT THE COMPANY WOULD PROVIDE
DETAILS LATER THIS QUARTER ON EXPANDING EXPLORER PRODUCTION HE DECLINED TO
SAY IF FORD WHICH CURRENTLY ASSEMBLES THE VEHICLE IN LOUISVILLE KY WOULD
BEGIN BUILDING THE EXPLORER AT A SECOND ASSEMBLY PLANT

THE EXPLORER WHICH IS ONE OF FORD'S MOST PROFITABLE VEHICLES HAS BEEN A
HIT SINCE IT WAS INTRODUCED IN THE SPRING OF 1990 FORD SOLD MORE THAN
300000 EXPLORERS LAST YEAR UP FROM 250000 IN 1991

FORD IS PLANNING TO INTRODUCE AN UPSCALE VERSION OF THE EXPLORER LATER THIS
YEAR THE EXPLORER LIMITED MODEL WILL INCLUDE SUCH STANDARD FEATURES AS
THICKER CARPET A KEYLESS ENTRY SYSTEM THAT OPENS THE CAR'S DOORS
ELECTRONICALLY AND PREMIUM LEATHER SEATS EQUIPPED WITH FOURWHEELDRIVE
THE EXPLORER LIMITED IS EXPECTED TO HAVE A STARTING PRICE ABOVE 25000

SEPARATELY MR TROTMAN SAID THAT FORD EXPECTS IMPROVED FINANCIAL RESULTS
FROM ITS UNPROFITABLE EUROPEAN OPERATIONS IN 1993 DESPITE A DETERIORATING
MARKET IN GERMANY AND SOME OTHER COUNTRIES THERE ARE SIGNS THAT THE ECONOMY
IN THE UNITED KINGDOM USUALLY FORD'S MOST IMPORTANT MARKET IS BEGINNING TO
IMPROVE HE SAID

MAYBE BRITAIN WILL BE THE FIRST OF THE MAJOR EUROPEAN COUNTRIES TO COME OUT
OF THE SLUMP SAID MR TROTMAN

FOR THE FIRST NINE MONTHS OF 1992 FORD POSTED A 218 MILLION LOSS IN ITS
OVERSEAS OPERATIONS COMPARED WITH A 764 MILLION LOSS FOR THE YEAREARLIER
PERIOD MOST OF THE LOSSES CAME FROM EUROPE INCLUDING FORD'S JAGUAR
SUBSIDIARY WHICH HAS BEEN RUNNING AN OPERATING LOSS OF ABOUT 100 MILLION A
QUARTER

FORD RECENTLY SAID THAT IT PLANS TO TRIM 10000 JOBS FROM ITS EUROPEAN
OPERATIONS AND AS A RESULT THAT IT WOULD TAKE A 419 MILLION CHARGE AGAINST
FOURTHQUARTER EARNINGS IN THE FIRST NINE MONTHS OF 1992 FORD EARNED
6814 MILLION OR 110 A SHARE THE LATEST WORK FORCE REDUCTIONS COME ON
TOP OF THE 22000 JOBS FORD HAS SLASHED IN EUROPE DURING THE PAST TWO YEARS
9301060130 930106 BRITISH AIRWAYS MAINTAINS INTEREST IN USAIR STAKE 
 BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL

LONDON BRITISH AIRWAYS IS CONTINUING TALKS TO ACQUIRE A STAKE IN USAIR
BUT THE COMPANY DECLINED TO COMMENT ON REPORTS THAT IT WAS PREPARING TO MAKE
A NEW BID FOR A SMALLER PORTION OF THE CARRIER

THE DISCUSSIONS FOLLOW BRITISH AIRWAYS' DECISION TWO WEEKS AGO TO PULL OUT
OF AN AGREEMENT TO INVEST 750 MILLION IN THE STRUGGLING US AIRLINE

WE SAID THEN THAT WE'D BE CONTINUING TALKS WITH USAIR AND WE'RE STILL
TALKING SAID A BRITISH AIRWAYS SPOKESMAN HE ADDED THAT BRITISH PRESS
REPORTS ABOUT A FORTHCOMING BID WERE JUST SPECULATION AND DECLINED TO
COMMENT FURTHER

THE LONDON INDEPENDENT NEWSPAPER SAID BRITISH AIRWAYS WAS PREPARING A
REVISED BID TO MAKE WITHIN FOUR TO SIX WEEKS FOR NO MORE THAN 20 OF USAIR'S
EQUITY AND VOTING RIGHTS ITS PREVIOUS BID WOULD HAVE GIVEN IT A 44 EQUITY
STAKE IN USAIR 21 VOTING CONTROL AND FOUR OF 16 SEATS ON AN EXPANDED USAIR
BOARD

A SPOKESMAN FOR USAIR A UNIT OF USAIR GROUP INC DECLINED TO COMMENT ON
THE INDEPENDENT REPORT BUT NOTED THAT THE AIRLINE HAS ALREADY SAID IT WOULD
CONTINUE TO EXPLORE OPPORTUNITIES INCLUDING ALTERNATIVE RELATIONSHIPS WITH
BRITISH AIRWAYS

THE BIG THREE US CARRIERS ARGUED THAT THE ORIGINAL DEAL WOULD HAVE GIVEN
BRITISH AIRWAYS EFFECTIVE VETO CONTROL OVER USAIR DECISIONS VIOLATING LAWS
AGAINST FOREIGN OWNERSHIP OF MORE THAN 25 OF US AIRLINES US CARRIERS
ALSO DEMANDED THAT IN EXCHANGE FOR BRITISH AIRWAY'S FOOTHOLD IN THE US
MARKET THEY BE GIVEN MUCH GREATER ACCESS TO BRITAIN'S TIGHTLY PROTECTED
AIRPORTS PARTICULARLY LONDON HEATHROW WHEN BRITISH AND US AUTHORITIES
WERE UNABLE TO SETTLE THEIR DIFFERENCES ON ACCESS THE DEAL COLLAPSED

ANALYSTS IN LONDON STILL WONDER WHAT FORMULA CAN BE FOUND TO SATISFY ALL
PARTIES THE SORT OF DEAL THAT BRITISH AIRWAYS WANTS AND USAIR NEEDS ISN'T
GOING TO BE CLEARED BY THE AUTHORITIES SAID IAN WILD A TRANSPORT ANALYST
WITH BARCLAYS DE ZOETE WEDD A LONDON STOCKBROKER HE SAID THAT WITHOUT A
SUBSTANTIAL EQUITY STAKE IN USAIR AND SOME CONTROL OVER MAJOR DECISIONS
BRITISH AIRWAYS DOESN'T HAVE THE SECURITY AND CONTROL IT NEEDS AND USAIR
DOESN'T HAVE THE MONEY IT NEEDS

HE ALSO DOUBTED THAT THE UK AUTHORITIES WOULD BUDGE IN REGARD TO GIVING
GREATER ACCESS TO BRITISH AIRPORTS IF THEY DID SO TO FACILITATE A BRITISH
AIRWAYS DEAL OTHER BRITISH AIRLINES COULD DEMAND SIMILAR ASSISTANCE MR
WILD SAID 9301060129 930106 COMMODITIES COFFEE FUTURES PRICES FALL
SHARPLY WEIGHTED BY CONCERN ON POLICY OF BRAZIL'S NEW GOVERNMENT  
BY WARREN GETLER AND JEFFREY TAYLOR STAFF REPORTERS OF THE WALL STREET
JOURNAL

COFFEE FUTURES PRICES BUFFETED BY CONCERNS ABOUT THE COFFEE POLICY OF THE
NEW GOVERNMENT OF BRAZIL FELL SHARPLY IN HEAVY TRADING CONTINUING A STRONG
NEW YEAR'S SLUMP

IN TRADING ON NEW YORK'S COFFEE SUGAR AND COCOA EXCHANGE COFFEE FOR MARCH
DELIVERY SKIDDED THREE CENTS TO 7180 CENTS A POUND THE LOWEST PRICE SINCE
NOVEMBER

ANALYSTS SAID THE MARCH CONTRACT PRICE WHICH HAD ENDED THE YEAR AT 7755
CENTS A POUND WILL LIKELY TEST 70 CENTS A POUND AMID GROWING CONCERN THAT
BRAZIL THE WORLD'S LARGEST COFFEE PRODUCER MAY MOVE TOWARD AN AGGRESSIVE
EXPORT POLICY

THERE'S NO FUNDAMENTAL CONFIDENCE IN THE MARKET SAID WILLIAM O'NEILL
SENIOR FUTURES STRATEGIST AT MERRILL LYNCH THE NEARTERM DOWNSIDE COULD GO
TO AROUND 68 CENTS

ON DEC 21 THE ACTIVELY TRADED MARCH CONTRACT CLOSED AT 8190 CENTS A
POUND BUT HOPES THAT PRICES WOULD CONTINUE TO CLIMB ABOVE THAT LEVEL WERE
SOON DASHED BY POLITICAL TURMOIL IN BRAZIL AND OTHER FUNDAMENTAL FACTORS
ANALYSTS SAID

THE CHANGE OF GOVERNMENT IN BRAZIL FOLLOWING THE RESIGNATION OF PRESIDENT
FERNANDO COLLOR DE MELLO ON DEC 29 HAS SPARKED INDUSTRY WORRIES THAT THE
NEW EXPORTMINDED ADMINISTRATION OF PRESIDENT ITAMAR FRANCO WILL SEEK AN
ACCELERATED SALE OF THE GOVERNMENT'S STOCK OF ABOUT 17 MILLION BAGS OF
COFFEE

RELEASE OF THOSE STOCKS WOULD THEORETICALLY FREE UP HIGHER GRADE COFFEE FOR
EXPORT WHICH COULD PUT STRONG DOWNWARD PRESSURE ON INTERNATIONAL FUTURES
PRICES

YET NOT ALL ANALYSTS ARE CONVINCED THAT FUTURES PRICES WILL CONTINUE IN FREE
FALL EVEN THOUGH WE'VE GOT A MAJOR REVERSAL IN THE MARKET SAID BRIAN
MCCAFFREY A SENIOR ANALYST WITH REDELSILGO GROUP IN NEW YORK AT THIS
POINT THE MARKET IS OVERSOLD WE'LL SEE AT SOME POINT IN THE NEXT FEW
DAYS SOME SHORTCOVERING AND CONSOLIDATION

SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS
 OR WAGERS THAT COFFEE PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS
TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORTCOVERING BY COFFEE PRODUCERS
AND BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM
TO THE MARKET

BIG INVESTORS WERE SELLING HOWEVER WE SAW HUGE VOLUME AND STRONG SELLING
PRESSURE IN YESTERDAY'S COFFEE FUTURES TRADING IN NEW YORK SAID ARTHUR
STEVENSON AN ANALYST AT PRUDENTIAL SECURITIES

ALSO CONTRIBUTING TO THE RETREAT IN COFFEE FUTURES PRICES ARE GROWING DOUBTS
THAT COFFEEPRODUCING COUNTRIES WILL BE ABLE TO FORGE AN INTERNATIONAL
COFFEE AGREEMENT REGULATING PRODUCTION

ANALYSTS SAID THEY WILL BE WATCHING CLOSELY THE SCHEDULED JAN 25TOFEB 5
MEETING IN LONDON OF THE FULL INTERNATIONAL COFFEE ORGANIZATION WHICH
BRINGS TOGETHER LEADING PRODUCER AND CONSUMER NATIONS THE COFFEE MARKET
WILL BE ESPECIALLY SENSITIVE TO ANY SIGNS THAT THE WORLD COFFEE GLUT CAN BE
CUT

HOW THE CLINTON ADMINISTRATION WILL REACT TO ANY SUCH ACCORD ON COFFEE
QUOTAS IS A FURTHER UNCERTAINTY WEIGHING ON THE MARKET MR O'NEILL NOTED

BEARISH COFFEE TRADERS ARE WARY OF THE POSSIBILITY OF AN INTERNATIONAL
COFFEE AGREEMENT IF SUCH AN AGREEMENT WERE REACHED AT THE JAN 25 MEETING
THE RESULT WOULD LIKELY BE A SURGE IN COFFEE FUTURES PRICES POSSIBLY
RETURNING THEM ABOVE THE 80CENTAPOUND PRICE LEVEL THE MARKET IS SO
VOLATILE RIGHT NOW THAT THIS IS A GAME FOR THE BIG BOYS SAID BERNARD
SAVAIKO COFFEE ANALYST FOR PAINEWEBBER INC THE SMALL INVESTOR SHOULD BE
VERY CAREFUL IN THIS MARKET

IN OTHER COMMODITY MARKETS YESTERDAY

PRECIOUS METALS GOLD FUTURES PRICES RALLIED SLIGHTLY FROM THE SEVENYEAR
LOW THEY SET ON MONDAY THE PRICE OF THE FEBRUARY FUTURES CONTRACT SETTLED
60 CENTS HIGHER AT 329 AN OUNCE ANALYSTS ATTRIBUTED THE INCREASE TO
COVERING OF SHORT POSITIONS BY GOLD PRODUCERS AND BARGAINHUNTING AT WHAT
SOME TRADERS CONSIDERED TO BE A RELATIVELY LOW PRICE BUT MOST ANALYSTS
THINK GOLD IS DUE FOR CONTINUING PRICE SLIDES THE FACT IS THAT THE MARKET
CONTINUES TO TRADE LOWER SAID FRED DEMLER METALS ECONOMIST FOR
PAINEWEBBER INC IN NEW YORK THIS IS A VERY POOR REACTION TO REACHING
CONTRACT LOWS AND IT BODES POORLY FOR THE FUTURE

LIVESTOCK & MEATS CATTLE FUTURES PRICES ROSE TO LIFEOFCONTRACT HIGHS
BECAUSE THE HARSH WINTER IS CREATING A TIGHT SUPPLY OF CATTLE READY FOR
SLAUGHTER IN TRADING AT THE CHICAGO MERCANTILE EXCHANGE THE CATTLE
CONTRACT FOR FEBRUARY DELIVERY ROSE FIVE CENTS TO SETTLE AT 7810 CENTS A
POUND CHARLES LEVITT AN ANALYST AT SHEARSON LEHMAN BROTHERS INC CHICAGO
SAID COLD AND WET WEATHER ACROSS THE MAJOR RANCH STATES DURING DECEMBER
SLOWED THE RATE OF GROWTH OF CATTLE ON FEEDLOTS WHICH FATTEN THE ANIMALS
FOR SLAUGHTER A STEER'S RATE OF WEIGHT GAIN TYPICALLY SLOWS DURING STORMY
WEATHER BECAUSE IT REQUIRES MORE ENERGY THE GROWTH DELAY IS CREATING A
BOTTLENECK OF MATURE CATTLE EVEN THOUGH A RELATIVELY LARGE NUMBER OF CATTLE
ARE ON FEEDLOTS IN THE SEVEN MAJOR RANCH STATES THE AGRICULTURE DEPARTMENT
COUNTED 88 MILLION HEAD OF CATTLE ON FEEDLOTS ON DEC 1 UP 5 FROM THE
SAME 1991 DATE HOG PRICES CONTINUE TO BE DEPRESSED BY PROJECTIONS THAT PORK
PRODUCTION THIS YEAR WILL RISE ABOVE THE RECORD HIGH LEVEL HIT IN 1992 AN
AGRICULTURE DEPARTMENT SURVEY ON DEC 1 FOUND A 4 LARGER HOG POPULATION
THAN ITS DEC 1 1991 SURVEY

ENERGY PETROLEUM FUTURES PRICES SETTLED HIGHER IN TRADING YESTERDAY ON THE
NEW YORK MERCANTILE EXCHANGE RECOVERING SOME OF THE GROUND LOST IN MONDAY'S
SELLOFF BUT SOME TRADERS SAID THE CHOPPY BACKANDFORTH TRADING MAKES IT
ESPECIALLY TOUGH TO PREDICT WHICH WAY PRICES ARE HEADED STILL MANY SAID
THEY EXPECT SOME BULLISH NEWS ON US INVENTORIES THIS WEEK BECAUSE OF A
RECENT BARGE ACCIDENT THAT SLOWED TRAFFIC IN THE HOUSTON SHIP CHANNEL SUCH
A REPORT COULD HELP COUNTER TEMPORARILY THE DOWNWARD PRESSURE OF
UNSEASONABLY WARM WEATHER IN THE NORTHEAST FEBRUARY CRUDE OIL ROSE 22 CENTS
TO 1926 A BARREL WITH OUTER MONTHS HIGHER HEATING OIL FOR FEBRUARY
DELIVERY GAINED 61 CENTS TO CLOSE AT 5579 CENTS A GALLON WHILE NATURAL GAS
ROSE THREE CENTS TO 1584 PER MILLION BRITISH THERMAL UNITS ROUGHLY
EQUIVALENT TO A THOUSAND CUBIC FEET GASOLINE FOR FEBRUARY DELIVERY SETTLED
67 CENTS HIGHER AT 5484 CENTS A GALLON 9301060128 930106 CREDIT RATINGS

TNP ENTERPRISES INC FORT WORTH TEXAS STANDARD & POOR'S CORP REVISED
ITS RATING OUTLOOK FOR TEXASNEW MEXICO POWER CO A TNP ENTERPRISES UNIT TO
STABLE FROM POSITIVE THE RATINGS AGENCY AFFIRMED THE UTILITY'S DOUBLEB
SENIOR SECURED DEBT AND SINGLEBPLUS SUBORDINATED DEBT RATINGS ABOUT 750
MILLION OF DEBT IS OUTSTANDING S&P CITED A RECENT REHEARING BY THE TEXAS
PUBLIC UTILITIES COMMISSION LOWERING A PREVIOUS RATE INCREASE TO ABOUT 18
MILLION FROM 25 MILLION THE NEW LOWER RATES WILL GO INTO EFFECT IN THE
FIRST QUARTER AND ABOUT 15 MILLION WILL BE RETURNED TO RATEPAYERS S&P
SAID 9301060126 930106 HUNT OIL COMPLETES PURCHASE

DALLAS HUNT OIL CO SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED
ACQUISITION OF THE DOMESTIC OIL AND GAS ASSETS OF PACIFIC ENTERPRISES OIL
CO BASED IN LOS ANGELES FOR 371 MILLION

THE ASSETS INCLUDE RESERVES CONTAINING THE EQUIVALENT OF ABOUT 63 MILLION
BARRELS OF OIL AND SEVERAL OIL AND GAS FIELDS ON THE BURNETT RANCH IN KING
COUNTY TEXAS

HUNT IS A CLOSELY HELD OIL AND GAS CONCERN 9301060125 930106 TECHNOLOGY
 AT&T PICTURING SALES INCREASE CUTS PRICE ON VIDEOPHONE  MOVE
IS SEEN AS BID BY COMPANY TO ESTABLISH DOMINANCE GIVE JUMPSTART TO
PRODUCT  BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET
JOURNAL

AMERICAN TELEPHONE & TELEGRAPH CO CUT THE PRICE OF ITS VIDEOPHONE BY 33 TO
1000 IN WHAT ANALYSTS SAID WAS AN ATTEMPT TO JUMPSTART SALES AND
ESTABLISH AN EARLY DOMINANCE IN THE FIELD

AS PART OF ITS PRICE CUT AT&T SAID IT WOULD MAIL 500 REBATE CHECKS TO
CUSTOMERS WHO HAVE ALREADY BOUGHT THE VIDEOPHONE 2500 AT 1500 A UNIT
INCLUDING CHAIRMAN ROBERT E ALLEN WHO RECENTLY BOUGHT SIX PHONES

MOREOVER AT&T SAID IT WOULD OFFER ONEDAY RENTALS OF THE PHONE THROUGH ITS
400 AT&T PHONE CENTERS FOR 2995 A UNIT

WHILE AT&T SAID THAT THE RESPONSE TO ITS VIDEOPHONE FROM CONSUMERS HAS BEEN
OVERWHELMING ANALYSTS SAID THE COMPANY HAS ACTUALLY SOLD LESS THAN 10000
PHONES SINCE SHIPMENTS BEGAN IN AUGUST

THE OVERWHELMING RESPONSE IS MANY PEOPLE ARE WALKING OUT OF AT&T PHONE
STORES WITHOUT BUYING THEM SAID ELLIOT GOLD PUBLISHER OF TELESPAN A
PUBLICATION THAT FOLLOWS THE TELECONFERENCING INDUSTRY HE ESTIMATED THAT
AT&T HAD SOLD 4000 UNITS BY NEW YEAR'S EVE PETER HAMPTON CONSUMER
COMMUNICATIONS ANALYST AT YANKEE GROUP A BOSTON RESEARCH GROUP SAID HE WAS
TOLD BY HIS AT&T SOURCES THAT THE COMPANY HAS SO FAR SOLD LESS THAN 10000
PHONES

MEANWHILE MCI COMMUNICATIONS CORP IS GEARING UP TO MARKET ITS OWN
VIDEOPHONE WHICH ALLOWS CALLERS TO SEE EACH OTHER ON A SMALL SCREEN WHILE
THEY TALK MCI'S PHONE WHICH IS BUILT BY GEC MARCONI ELECTRONICS LTD OF
BRITAIN WILL SELL FOR 750

TO ESTABLISH ITSELF AHEAD OF MCI AND REINFORCE OUR COMMITMENT TO THE
MARKET AT&T PLANS TO SELL THE PHONE IN 25 COUNTRIES BY THE END OF THIS
YEAR SAID STEPHEN M CLEMENTE GENERAL MANAGER OF GLOBAL VIDEOPHONE
SYSTEMS A UNIT OF AT&T CONSUMER PRODUCTS THE PHONE IS ALREADY SOLD IN THE
US THROUGH 1000 RETAIL OUTLETS AND IN CANADA AND MEXICO

AT&T SAID IT HAS SIGNED AGREEMENTS WITH 11 US HOTEL CHAINS TO PUT
VIDEOPHONES IN AS MANY AS 150 LOCATIONS SUCH AS LOBBIES AND MEETING ROOMS
THE HOTELS INCLUDE THE CHAINS OF HILTON HOTELS CORP MARRIOTT CORP AND
WESTIN HOTELS

MR GOLD SAID ALL OF THIS SHOULD HELP CEMENT THE VIDEOPHONE IN THE MINDS OF
CONSUMERS BUT IT WON'T TAKE OFF UNTIL THEY SELL THEM AT THE MAGIC NUMBER
OF 399 HE SAID NOTING THAT RECENT SALES OF OTHER EXPENSIVE PHONE
PRODUCTS SUCH AS CELLULAR PHONES INDICATE THAT IF THEY CUT THE PRICE TO
THAT THEY'LL SELL TONS OF THEM 9301060124 930106 NEW YORK FED'S 
CORRIGAN PLANS TO RESIGN POST  CENTRAL BANKER RESPECTED FOR
CRISIS MANAGEMENT MOVES TO PRIVATE SECTOR  BY PETER PAE AND
STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL

E GERALD CORRIGAN IS RESIGNING AS PRESIDENT OF THE FEDERAL RESERVE BANK OF
NEW YORK A POST WHERE HE WIELDED THE MOST INFLUENCE OF ANY CENTRAL BANKER
OF THE PAST DECADE IN THE ART OF FINANCIAL CRISIS MANAGEMENT

MR CORRIGAN 51 YEARS OLD SAID HE WAS STEPPING DOWN EFFECTIVE AUG 20 TO
PURSUE A JOB IN THE PRIVATE SECTOR HE HAS BEEN HEAD OF THE LARGEST AND MOST
INFLUENTIAL ARM OF THE NATION'S CENTRAL BANK FOR THE PAST EIGHT YEARS

THE TIME WAS RIGHT MR CORRIGAN SAID REFERRING TO THE NEED FOR A CHANGE
AFTER WORKING IN THE FEDERAL RESERVE SYSTEM FOR 25 YEARS THERE IS NO
HIDDEN STORY HE ADDED

MR CORRIGAN'S RESIGNATION IS A MAJOR LOSS TO THE CENTRAL BANK AS AN ADEPT
TROUBLESHOOTER MR CORRIGAN HAS BEEN THE POINT MAN IN HELPING THE FED
CONTAIN THE DAMAGE OF UNEXPECTED FINANCIAL EVENTS INCLUDING THE STOCK
MARKET CRASH OF 1987 AND THE DISSOLUTION OF THE DREXEL BURNHAM LAMBERT
EMPIRE IN ADDITION HE HAS TAKEN ON THE ROLE OF ALERTING THE FINANCIAL
WORLD TO POTENTIAL RISKS IN THE EVOLUTION OF THE ELECTRONIC MOVEMENT AND
SETTLEMENT OF MONEY AROUND THE GLOBE AND THE FARREACHING IMPLICATIONS OF
NEW SOPHISTICATED FINANCIAL INSTRUMENTS

ALTHOUGH HE IS THE ONLY ONE OF THE 12 FED BANK PRESIDENTS WHO HAS A
PERMANENT VOTE ON MONETARY POLICY MR CORRIGAN HASN'T PLAYED MUCH OF A ROLE
IN THE FED DEBATES OVER INTEREST RATES IN THE PAST FEW YEARS HIS DEPARTURE
ISN'T LIKELY TO AFFECT THE NEARTERM COURSE OF MONETARY POLICY

HE'S A MAN OF ACTION AND A THINKER A RENAISSANCE IDEAL SAID H RODGIN
COHEN A PARTNER AT THE LAW FIRM OF SULLIVAN AND CROMWELL IT'S A TERRIBLE
BLOW TO THE SYSTEM THERE'S AN ENORMOUS HOLE TO FILL THAT WILL NOT BE
READILY FILLABLE  HE'S CLOSE TO IRREPLACEABLE

STILL THE NEW YORK FED WAS CRITICIZED FOR LACK OF REGULATORY OVERSIGHT OVER
THE RENEGADE BANK FOR CREDIT & COMMERCE INTERNATIONAL AND FOR NOT POLICING
TRADING IN THE GOVERNMENT SECURITIES MARKET THAT EVENTUALLY LED TO THE
SALOMON BROTHERS SCANDAL OF 1991

WHILE MR CORRIGAN ISN'T RESIGNING UNTIL AUG 20 THE NEW YORK FED'S BOARD
OF DIRECTORS HAS BEGUN A SEARCH FOR A SUCCESSOR AMONG POSSIBLE CANDIDATES
UNDER SPECULATION ARE THE EXPERIENCED MEMBERS AT SMALLER FED DISTRICTS SUCH
AS RICHARD SYRON PRESIDENT OF THE BOSTON FED AND GARY STERN PRESIDENT OF
THE MINNEAPOLIS FED WHO SPENT SEVEN YEARS WITH THE NEW YORK FED INTERNAL
CANDIDATES COULD INCLUDE WILLIAM MCDONOUGH EXECUTIVE VICE PRESIDENT AT THE
NEW YORK FED AND THE INSTITUTION'S SECONDINCOMMAND BEHIND MR CORRIGAN AS
WELL AS JAMES OLTMAN FIRST VICE PRESIDENT OF THE NEW YORK FED

THOMAS G LABRECQUE CHAIRMAN OF CHASE MANHATTAN CORP AND A MEMBER OF THE
NEW YORK FED'S BOARD SAID HE WILL BE MISSED AND WE HAVE A SIGNIFICANT
JOB AHEAD OF US

MR LABRECQUE DECLINED TO COMMENT ON WHO THE BOARD IS CONSIDERING AND WHAT
QUALIFICATIONS THE BOARD IS LOOKING FOR BUT CLEARLY THE SUCCESSOR MUST BE
STEEPED IN THE CAPITAL MARKETS WITH A GLOBAL PERSPECTIVE

THE APPOINTMENT OF MR CORRIGAN'S SUCCESSOR IS ALSO SUBJECT TO THE APPROVAL
OF THE SEVENMEMBER FEDERAL RESERVE BOARD IN WASHINGTON NEITHER
PRESIDENTELECT CLINTON NOR THE CONGRESS HAS ANY ROLE IN THE CHOICE ANY NEW
YORK FED PRESIDENT WOULD BE CONSIDERED A CONTENDER FOR THE FED CHAIRMANSHIP
BUT FED CHAIRMAN ALAN GREENSPAN'S TERM EXTENDS UNTIL MARCH 1996

MUCH ATTENTION IS BEING PAID TO THE NAMING OF THE SUCCESSOR BECAUSE THE JOB
IS SECOND ONLY TO THE FED CHAIRMANSHIP IN IMPORTANCE AND PRESTIGE THE
PRESIDENT OF THE NEW YORK FED OVERSEES 3700 REGULATORS AND ECONOMISTS WHO
REGULATE BANKS AND ADMINISTER THE NATION'S MONETARY POLICY THE NEW YORK FED
PRESIDENT ALSO SUPERVISES AUCTIONS OF US TREASURY SECURITIES WHICH ARE
CRITICAL TO FINANCING THE NATIONAL DEBT AND TO KEEPING THE GOVERNMENT
FUNCTIONING SMOOTHLY AND TAKES PART IN A COMMITTEE THAT SETS THE CENTRAL
BANK'S POLICIES ON INTEREST RATES

A PROTEGE OF FORMER FED CHAIRMAN PAUL VOLCKER MR CORRIGAN ROSE THROUGH THE
RANKS OF THE FED AFTER STARTING OUT AS A RESEARCH ECONOMIST NEARLY 25 YEARS
AGO HE GAINED ATTENTION FOR HIS QUICK DECISIONMAKING AND KNOWLEDGE OF
FINANCIAL MARKETS HE KNOWS HOW TO GET THINGS DONE SAID MR VOLCKER HE
HAS THE ABILITY TO TAKE CHARGE AND MOVE AHEAD

BEGINNING WITH THE HUNT BROTHERS' ALLEGED ATTEMPT TO CORNER THE SILVER
MARKET MR CORRIGAN HAS BEEN AT THE CENTER OF CONTAINING EVERY MAJOR
FINANCIAL CRISIS IN THE PAST DECADE HIS REPUTATION AS A TOUGH REGULATOR
GREW AFTER HE PERSUADED CHASE MANHATTAN CORP TO COVER LOSSES STEMMING FROM
THE COLLAPSE OF DRYSDALE GOVERNMENT SECURITIES INC IN 1982 IF CHASE HAD
NOT INCURRED THE LOSSES MANY FEARED A DOMINO EFFECT OF FAILURES IN THE
GOVERNMENT SECURITIES MARKET HE ALSO HELPED MANAGE THE FAILURE OF
CONTINENTAL ILLINOIS NATIONAL BANK

MR CORRIGAN'S MOST FAMOUS CRISIS MANAGEMENT CAME DURING THE STOCK MARKET
CRASH IN OCTOBER 1987 MR CORRIGAN WAS INSTRUMENTAL IN CONVINCING BANK
LENDERS TO FLOOD THE FINANCIAL SYSTEM WITH LIQUIDITY AFTER THE CRASH AS THE
HEAD OF THE FEDERAL RESERVE'S KEY OPERATING UNIT WHICH DAILY BUYS OR SELLS
HUGE AMOUNTS OF GOVERNMENT SECURITIES THE NEW YORK FED PRESIDENT IS CLOSELY
IN TOUCH WITH WALL STREET HE BECAME THE FED'S POINT MAN IN DEALING WITH THE
CRISIS

AND DURING THE COLLAPSE OF DREXEL BURNHAM LAMBERT MR CORRIGAN MADE THE
FATEFUL MIDNIGHT CALL TELLING CHIEF EXECUTIVE OFFICER FREDERICK JOSEPH THAT
THE GOVERNMENT MIGHT HAVE TO FORCE AN INVOLUNTARY LIQUIDATION OF THE FIRM
THAT PROMPTED DREXEL TO SEEK BANKRUPTCY PROTECTION IN THE FOLLOWING WEEKS
AND MONTHS MR CORRIGAN WAS INSTRUMENTAL IN HELPING DREXEL UNWIND BILLIONS
OF DOLLARS OF FINANCIAL POSITIONS WITH MAJOR INSTITUTIONS AROUND THE WORLD

DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9301060123 930106 NEWS CORP
STOCK SOLD OFF IN WAKE OF CHANGES FLOPS  BY JOHNNIE L ROBERTS
 STAFF REPORTER OF THE WALL STREET JOURNAL

NEW YORK A SPATE OF EXECUTIVE DEPARTURES AT NEWS CORP'S FOX INC AND TWO
CHRISTMAS BOXOFFICE FLOPS ARE WORRYING WALL STREET AND RAISING QUESTIONS
ABOUT CHIEF EXECUTIVE RUPERT MURDOCH'S PERFORMANCE IN HOLLYWOOD

SKITTISH INVESTORS SLICED MORE THAN 6 OFF THE MARKET VALUE OF
AUSTRALIABASED NEWS CORP'S AMERICAN DEPOSITARY RECEIPTS IN TRADING ON THE
NEW YORK STOCK EXCHANGE YESTERDAY THE ADRS CLOSED AT 37875 DOWN 250

THE SELLOFF FOLLOWED THE RESIGNATION LATE MONDAY OF JAMIE KELLNER THE
PRESIDENT OF FOX BROADCASTING CO YESTERDAY FOX NAMED LUCILLE S SALHANY
CHAIRMAN OF FOX INC'S TELEVISION PRODUCTION ARM TO SUCCEED HIM MS
SALHANY WHO JOINED THE COMPANY LAST YEAR FROM RIVAL PARAMOUNT
COMMUNICATIONS INC IS A TELEVISION INDUSTRY VETERAN

INDUSTRY ANALYSTS ALSO CITED THE POOR PERFORMANCE OF FOX'S EXPENSIVE
CHRISTMAS MOVIES ALTHOUGH THE STUDIO HAS THE HIT HOME ALONE 2 IT ALSO IS
DISTRIBUTING HOFFA AND TOYS BOTH OF WHICH ARE BEING TAGGED AS BOX
OFFICE FLOPS THERE HAD BEEN HIGH ANTICIPATION ON THE STREET FOR A GOOD
PERFORMANCE BY THE TWO MOVIES BUT THEY DID VERY POORLY SAID JESSICA REIF
AN ANALYST AT OPPENHEIMER & CO

MR KELLNER'S RESIGNATION MEANWHILE CAPPED A STRING OF TOP LEVEL
DEPARTURES FROM NEWS CORP'S HOLLYWOOD OUTPOSTS THE FOX NETWORK AND THE
TWENTIETH CENTURY FOX FILM CORP STUDIO SINCE MR MURDOCH BECAME CHAIRMAN
OF THE OPERATIONS EARLY LAST YEAR INDUSTRY EXECUTIVES NOW FEAR MR MURDOCH
MAY BE ASSUMING TOO MUCH CONTROL OVER ENTERTAINMENT OPERATIONS IN WHICH HE
HAS NO PREVIOUS MANAGEMENT EXPERIENCE AND ONE FORMER TOP EXECUTIVE PREDICTS
MR MURDOCH WILL MOVE TO CHANGE THE PROGRAMMING OF THE FOX NETWORK WHICH
THOUGH SUCCESSFUL CLASHES WITH MR MURDOCH'S MORE CONSERVATIVE TASTES

MR MURDOCH MOVED TO LOS ANGELES FROM NEW YORK TO FOCUS ON THE FILMED
ENTERTAINMENT OPERATIONS THAT WERE THEN UNDER BARRY DILLER FOX CHAIRMAN AND
CHIEF EXECUTIVE MR DILLER RESIGNED HIS POSTS SHORTLY THEREAFTER MR
MURDOCH SUBSEQUENTLY FIRED STEVEN CHAO THE HEAD OF FOX NEWS AFTER MR CHAO
MADE A BUSINESS PRESENTATION THAT FEATURED A MALE STRIPPER MR MURDOCH
CONSIDERED THE EPISODE IN BAD TASTE

TWO MONTHS AGO FOX STUDIO HEAD JOE ROTH RESIGNED AFTER FAILING TO COME TO
AN AGREEMENT ON A NEW CONTRACT WITH MR MURDOCH MR MURDOCH HAD OPENLY
CRITICIZED THE STUDIO'S PERFORMANCE WHICH THOUGH MIXED LAST YEAR INCLUDED
SUCH HITS AS THE LAST OF THE MOHICANS INSTEAD OF PICKING A SEASONED MOVIE
EXECUTIVE TO SUCCEED MR ROTH MR MURDOCH NAMED A FOX TELEVISION EXECUTIVE
PETER CHERNIN TO THE POST

NEWS CORP HAS CREATED SOME UNCERTAINTY IN MANAGEMENT AND TALENTDRIVEN
BUSINESSES SAID ANALYST JOHN S REIDY OF SMITH BARNEY HARRIS UPHAM & CO
FOR INVESTORS STABILITY IS ALWAYS PREFERRED EVEN SO HE SAID HE EXPECTS
THE COMPANY TO POST EARNINGS PER ADR OF 320 FOR THE YEAR ENDING JUNE 30
UP FROM 227 PER ADR

ANOTHER ANALYST SAID MS SALHANY IS UNIQUELY QUALIFIED TO RUN THE NETWORK
BUT ADDED THAT THE OPERATION WILL GET HARDER AND HARDER TO EXPAND FOX IS
GOING INTO A NEW PHASE

NEWS CORP OFFICIALS DECLINED TO COMMENT BUT THIS IS THE FIRST TIME IN A
YEAR THAT THE COMPANY'S SHARES HAVE TAKEN A DRUBBING ON WALL STREET LAST
YEAR NEWS CORP WAS A FAVORITE OF INVESTORS AS MR MURDOCH SUCCESSFULLY
RESTRUCTURED NEWS CORP'S BURDENSOME DEBT LOAD DURING 1992 THE ADRS ROSE
76 TO END THE YEAR AT 4075

MS REIF OF OPPENHEIMER RECENTLY REMOVED HER BUY RECOMMENDATION ON NEWS
CORP SUGGESTING THAT INVESTORS INTERESTED IN THE ENTERTAINMENT INDUSTRY
PURCHASE SHARES OF TIME WARNER INC INSTEAD YESTERDAY SHE ALSO CITED
CONCERNS ABOUT THE HIGH EXECUTIVE TURNOVER AT FOX 9301060122 930106
BURLINGTON COAT FACTORY SALES

BURLINGTON NJ BURLINGTON COAT FACTORY WAREHOUSE CORP SAID DECEMBER
SALES ROSE 26 TO 237 MILLION FROM 188 MILLION A YEAR EARLIER WHILE
SAMESTORE SALES ROSE 18

THE INCREASE IN SAMESTORE SALES REFLECTS COOLER WEATHER TWO ADDITIONAL
SHOPPING DAYS AND A BETTER SELECTION OF MERCHANDISE A SPOKESMAN SAID

THE OPERATOR OF OFFPRICE APPAREL AND COAT STORES SAID TOTAL SALES FOR THE
SECOND QUARTER ENDED DEC 26 ROSE 19 TO 496 MILLION FROM 416 MILLION A
YEAR AGO SAMESTORE SALES ROSE 14 IN THE QUARTER

THE COMPANY'S STOCK ROSE 1125 TO 22625 IN TRADING ON THE NEW YORK STOCK
EXCHANGE 9301060121 930106 LAW SALOMON BROTHERS WILL PAY 4 MILLION 
TO SETTLE STATES' COMPLAINT IN SCANDAL  BY JOHN CONNOR SPECIAL TO
THE WALL STREET JOURNAL

WASHINGTON SALOMON BROTHERS INC RESOLVED STATE SECURITIES CLAIMS ARISING
FROM ITS TREASURY SECURITIES SCANDAL AGREEING TO PAY 4 MILLION IN A
SETTLEMENT WITH 39 STATES AND THE DISTRICT OF COLUMBIA

UNDER THE ACCORD SALOMON WILL PAY 2 MILLION INTO A MULTISTATE INVESTOR
PROTECTION TRUST FUND ANOTHER 2 MILLION WILL BE SPLIT AMONG THE
JURISDICTIONS EACH RECEIVING 50000

LAST YEAR SALOMON PAID 290 MILLION TO SETTLE SECURITIES AND ANTITRUST
CHARGES BY THE SECURITIES AND EXCHANGE COMMISSION AND THE JUSTICE
DEPARTMENT

SEPARATELY A SALOMON BOND TRADER SUSPENDED IN THE SUMMER OF 1991 WHEN THE
TREASURYAUCTION BIDDING SCANDAL ERUPTED IS REJOINING THE BIG INVESTMENT
BANK

CHRISTOPHER FITZMAURICE WHO HAD TRADED FIVEYEAR NOTES UNDER PAUL MOZER
SALOMON'S FORMER GOVERNMENTBOND CHIEF AT THE CENTER OF THE SCANDAL WAS
NEVER CHARGED WITH ANY WRONGDOING BY THE GOVERNMENT THE 30YEAROLD MR
FITZMAURICE WILL AGAIN SIT ON SALOMON'S GOVERNMENTBOND DESK ALTHOUGH IT
ISN'T CLEAR WHAT TYPE OF NOTES HE WILL TRADE PEOPLE FAMILIAR WITH SALOMON
SAID

THE STATES' ACTION IS BASED ON THEIR POSITION THAT THE SEC'S COMPLAINT
AGAINST SALOMON AS WELL AS CONDUCT ACKNOWLEDGED BY THE FIRM CONSTITUTE
GROUNDS FOR THE STATES TO CANCEL SALOMON'S BROKERDEALER LICENSE

HAROLD LEVY A LAWYER FOR SALOMON SAID WE'RE GRATEFUL THE INVESTIGATION
IS OVER AND WE'RE PLEASED THAT A RESOLUTION OF THE STATE PROCEEDINGS WAS
POSSIBLE THROUGH A GLOBAL SETTLEMENT THE STATES IN TURN PRAISED SALOMON
FOR COOPERATING TO AN EXTRAORDINARY DEGREE WITH THEIR JOINT INVESTIGATION

MR LEVY SAID HE ISN'T AWARE OF ANY STATES NOT INCLUDED IN THE SETTLEMENT
PURSUING THEIR OWN INVESTIGATIONS NANCY SMITH DIRECTOR OF NEW MEXICO'S
SECURITIES DIVISION AND ONE OF THE LEADERS OF THE UNIFIED STATE ACTION SAID
IT'S POSSIBLE OTHER STATES MAY BE ENCOURAGED TO SETTLE WITH SALOMON USING
THE MODEL OF THE PACT OTHER OFFICIALS PREDICTED MOST OTHER STATES WILL
SETTLE

STATES NOT INCLUDED IN THE SALOMON SETTLEMENT ARE ALASKA ARIZONA
CALIFORNIA CONNECTICUT FLORIDA IDAHO OHIO NEW YORK RHODE ISLAND
VIRGINIA AND WISCONSIN

THE SALOMON ACTION IS THE FIRST MAJOR SETTLEMENT INVOLVING STATE SECURITIES
REGULATORS STATE OFFICIALS SAID THOUGH 42 STATES IN 1989 ACTED IN
PIECEMEAL FASHION IN LEVYING SOME 102 MILLION IN FINES AGAINST DREXEL
BURNHAM LAMBERT INC

MASSACHUSETTS SECRETARY OF STATE MICHAEL CONNOLLY CALLED THE SALOMON
AGREEMENT PRECEDENTSETTING AND SAID THE MULTISTATE TECHNIQUE IS LIKELY
TO BE USED IN THE FUTURE

COLORADO SECURITIES COMMISSIONER PHILIP FEIGIN SAID THE SETTLEMENT PROVES
THAT STATES CAN SUCCESSFULLY COME UP WITH AN INNOVATIVE FEATURE THE
MULTISTATE FUND THAT PROMISES TO BENEFIT INVESTORS ROY BLUNT MISSOURI'S
SECRETARY OF STATE SAID THE STATES HAVE DEMONSTRATED TO THE SECURITIES
INDUSTRY THAT THEY CAN ACT AS A UNIFIED FORCE IN DEALING WITH VIOLATIONS

NORTH CAROLINA SECRETARY OF STATE RUFUS EDMISTEN CALLED THE CREATION OF THE
INVESTOR PROTECTION TRUST FUND THE OUTSTANDING AND HISTORIC FEATURE OF THIS
SETTLEMENT THE FUND WILL BE RUN BY A GROUP OF STATE REGULATORS CHOSEN BY
OFFICIALS FROM THE STATES PARTICIPATING IN THE PACT A TOLLFREE NATIONAL
TELEPHONE LINE WILL BE SET UP TO ACCEPT INVESTOR COMPLAINTS AND INQUIRIES
THE FUND ALSO WILL BE USED FOR INVESTOR EDUCATION PROGRAMS AND TO HELP
FINANCE MULTISTATE SECURITIES PROBES

THE SETTLEMENT REQUIRES SALOMON TO PROVIDE STATE AUTHORITIES WITH A 30DAY
ADVANCE NOTICE OF ANY SIGNIFICANT EXPANSION OF ITS RETAIL BUSINESS IN THE
STATE PLUS A DESCRIPTION OF SUPERVISORY PROCEDURES TO ENSURE THE PROTECTION
OF INVESTORS AFFECTED BY THE EXPANSION

THE REINSTATEMENT OF MR FITZMAURICE CLOSES ONE OF THE FINAL INTERNAL
CHAPTERS IN SALOMON'S TREASURYAUCTION BIDDING SCANDAL LAST YEAR BESIDES
PAYING 290 MILLION IN FINES AND PENALTIES THE SALOMON UNIT ALSO SETTLED
CIVIL CHARGES AGAINST THREE FORMER TOP EXECUTIVES ALLEGING FAILURE TO
SUPERVISE WITHOUT ADMITTING OR DENYING WRONGDOING JOHN GUTFREUND FORMER
CHAIRMAN AGREED TO PAY 100000 THOMAS STRAUSS FORMER PRESIDENT AGREED
TO PAY 75000 AND JOHN MERIWETHER A FORMER VICE CHAIRMAN 50000

MR FITZMAURICE WAS SUSPENDED BY SALOMON IN AUGUST 1991 WHEN IT FIRST
REPORTED IRREGULARITIES AND RULE VIOLATIONS IN SEVERAL MULTIBILLIONDOLLAR
NOTE AUCTIONS YESTERDAY WAS THE FIRST TIME THAT SALOMON PUBLICLY CONFIRMED
THAT MR FITZMAURICE WAS THE BOND TRADER SUSPENDED ALONG WITH MR MOZER AND
THOMAS MURPHY A TOP AIDE THOUGH SALOMON HADN'T ANY EVIDENCE OF WRONGDOING
BY MR FITZMAURICE IT PUT HIM IN THE PENALTY BOX BECAUSE HIS TRADING
VEHICLE FIVEYEAR NOTES WAS AT THE HEART OF SEVERAL OF THE TREASURY
AUCTIONS WHERE IMPROPER BIDDING HAD TAKEN PLACE PEOPLE FAMILIAR WITH
SALOMON SAID

SALOMON HAS BEEN ASSURED THAT MR FITZMAURICE COOPERATED FULLY WITH ALL
AUTHORITIES THE FIRM SAID IN A STATEMENT HE WAS NEITHER CHARGED WITH ANY
WRONGDOING NOR DID THE AUTHORITIES' REPORTS REFER TO ANY OF HIS CONDUCT AS
BEING PART OF THE MISCONDUCT OF OTHERS SALOMON BROTHERS' OWN INVESTIGATION
AND REVIEW OF THE FACTS IS CONSISTENT WITH THESE CONCLUSIONS

MESSRS MOZER AND MURPHY CURRENTLY ARE FIGHTING FRAUD AND OTHER CHARGES FOR
THEIR ROLE IN A SERIES OF ILLEGAL BIDS IN TREASURY AUCTIONS BETWEEN 1989 AND
1991

MICHAEL SICONOLFI IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9301060120
930106 WHO'S NEWS MEDSTAT SYSTEMS INC

MEDSTAT SYSTEMS INC ANN ARBOR MICH TIMOTHY E MURNANE 43 YEARS OLD
FORMERLY EXECUTIVE VICE PRESIDENT OF INSURANCE SYSTEMS AND SERVICES WAS
NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS HEALTH CARE INFORMATION
CONCERN HE SUCCEEDS LAURENCE J HAGERTY WHO RESIGNED TO PURSUE OTHER
OPPORTUNITIES 9301060119 930106 WHO'S NEWS MORGAN STANLEY GROUP INC

MORGAN STANLEY GROUP INC NEW YORK JONATHAN M CLARK 55 YEARS OLD A
SENIOR PARTNER AT THE LAW FIRM DAVIS POLK & WARDWELL WAS NAMED GENERAL
COUNSEL AND SECRETARY OF THIS INTERNATIONAL SECURITIES AND FINANCIAL
SERVICES FIRM EFFECTIVE FEB 1 MR CLARK SUCCEEDS PHILIP A LACOVARA 49
WHO ANNOUNCED HIS RESIGNATION LAST MONTH TO PURSUE OTHER OPPORTUNITIES AS
PREVIOUSLY REPORTED MR LACOVARA WILL REMAIN A SENIOR ADVISER DURING THE
TRANSITION PERIOD AFTER FEB 1 MR CLARK WHO WILL BE SENIOR LEGAL OFFICER
RESPONSIBLE FOR THE FIRM'S LEGAL AND REGULATORY AFFAIRS WILL ALSO BE
RESPONSIBLE FOR GOVERNMENT RELATIONS IN HIS NEW ROLE AND BECOME A MEMBER OF
THE OPERATING COMMITTEE 9301060118 930106 WHO'S NEWS TRITON ENERGY
CORP

TRITON ENERGY CORP DALLAS THOMAS G FINCK WAS NAMED CHIEF EXECUTIVE
OFFICER IN ADDITION TO HIS POSITIONS AS PRESIDENT AND A DIRECTOR OF THIS OIL
AND GAS EXPLORATION AND PRODUCTION COMPANY WILLIAM I LEE 65 YEARS OLD
WILL RETIRE AS CHIEF EXECUTIVE BUT REMAIN CHAIRMAN MR FINCK 46 JOINED
TRITON AS PRESIDENT AND A DIRECTOR IN AUGUST AT THAT TIME HE WAS
DESIGNATED TO BECOME THE CHIEF EXECUTIVE THIS MONTH 9301060117 930106
WHO'S NEWS KEYCORP

KEYCORP ALBANY NY STEPHEN K HEINE 33 YEARS OLD WAS NAMED
PRESIDENT AND CHIEF EXECUTIVE OFFICER OF KEY BANK LIFE INSURANCE LTD THE
INSURANCE AND FINANCIAL SERVICES UNIT OF THIS MULTIREGIONAL BANK HOLDING
COMPANY WITH ASSETS OVER 25 BILLION MR HEINE WHO HAD BEEN VICE PRESIDENT
AND GENERAL MANAGER OF THE LIFE INSURANCE UNIT SUCCEEDS JOHN P MASTRIANI
40 WHO WAS RECENTLY NAMED CHAIRMAN OF THE UNIT AND CHIEF EXECUTIVE OF THE
COMPANY'S NEWLY FORMED KEYCORP TRUST & INVESTMENT MANAGEMENT GROUP
9301060116 930106 WHO'S NEWS EQUIFAX AS PART OF RESTRUCTURING NAMES 
MCGLAUGHLIN PRESIDENT OPERATING CHIEF  BY MARTHA BRANNIGAN STAFF
REPORTER OF THE WALL STREET JOURNAL

ATLANTA EQUIFAX INC AS PART OF A MAJOR REORGANIZATION NAMED DANIEL W
MCGLAUGHLIN AS PRESIDENT AND CHIEF OPERATING OFFICER

THE MOVE ACCORDING TO EQUIFAX SOLIDIFIES THE POSITION OF MR MCGLAUGHLIN
AS HEIR APPARENT TO EQUIFAX'S CHIEF EXECUTIVE OFFICER CB ROGERS JR

EQUIFAX WHICH IS ONE OF THE TOP THREE CREDITREPORTING CONCERNS IN THE
US IS REORGANIZING ITS BUSINESSES UNDER THREE NEWLY APPOINTED EXECUTIVE
VICE PRESIDENTS THE MOVES WHICH ARE EXPECTED TO BE ANNOUNCED TODAY WILL
REALIGN THE COMPANY'S 21 OPERATING UNITS TO GET MORE LEVERAGE OUT OF THOSE
BUSINESSES SAID MR MCGLAUGHLIN 56 YEARS OLD WHO HAD BEEN EXECUTIVE VICE
PRESIDENT

EQUIFAX APPEARS TO BE ACTING FROM A POSITION OF FINANCIAL STRENGTH WHILE
THE COMPANY HAS COME UNDER FIRE FROM CONSUMER GROUPS OVER ISSUES OF PRIVACY
THE COMPANY'S EARNINGS AND SHARE PRICE HAVE BEEN STRONG OF LATE A SPOKESMAN
SAID THE COMPANY IS COMFORTABLE WITH ANALYSTS' CONSENSUS EARNINGS
ESTIMATES OF 105 A SHARE FOR 1992 IN 1991 THE COMPANY HAD PERSHARE NET
INCOME OF SIX CENTS AFTER A 60CENTASHARE CHARGE

YESTERDAY THE COMPANY'S STOCK CLOSED AT 2025 DOWN 25 CENTS IN LATE NEW
YORK STOCK EXCHANGE TRADING THAT'S UP ABOUT 43 FROM ITS LOW IN 1992

IN RECENT YEARS NEW BUSINESSES AT EQUIFAX HAD BEEN ASSIGNED TO EXECUTIVES
IN A LARGELY DESULTORY FASHION ACCORDING TO THE COMPANY THAT MEANT THAT
POTENTIAL SYNERGIES WEREN'T BEING EXPLOITED AS MUCH AS THEY MIGHT HAVE BEEN
EQUIFAX EXECUTIVES SAID

IN THE PAST WE WENT TO CUSTOMERS WITH A SINGLE PRODUCT OR SERVICE SAID
MR MCGLAUGHLIN NOW WE'LL GO WITH A BROAD ARRAY OF PRODUCTS AND SERVICES

THAT MEANS FOR EXAMPLE THAT THE COMPANY WILL MORE SYSTEMATICALLY
CROSSMARKET ITS CREDITREPORT DATA WITH OTHER SERVICES SUCH AS PROVIDING
PRESCREENING FOR PREAPPROVED LINES OF CREDIT TO CREDITCARD CONCERNS
PROVIDING HELP IN MANAGING ACCOUNTS RECEIVABLE AND OFFERING
CREDITCOLLECTION SERVICES

IT ALSO MEANS THE COMPANY IS MOVING CLOSER TO MIXING ITS VARIOUS DATABASES
FOR THE CONSUMER THAT MAY MEAN FOR EXAMPLE THAT ONE'S CHECKCASHING
HISTORY MAY BECOME PART OF A CREDIT REPORT

THE INCLUSION OF CHECKWRITING HISTORY INFORMATION INTO CREDIT REPORTS IS A
SERVICE WE ARE LOOKING INTO SAID JOHN FORD VICE PRESIDENT OF CORPORATE
PUBLIC AFFAIRS IT CERTAINLY WOULD BE ADDED VALUE TO A CREDIT REPORT ANY
SUCH MOVE HE SAID WOULD BE GOVERNED BY THE FAIR CREDIT REPORTING ACT

IN AN INTERVIEW MR ROGERS THE COMPANY'S 63YEAROLD CHAIRMAN SAID THE
NEW MANAGEMENT STRUCTURE WILL PLACE MR MCGLAUGHLIN OVER ALL THE LINE
BUSINESSES AT THE 1 BILLION REVENUE CONCERN MR ROGERS WHO HAD BEEN
PRESIDENT AND WHO EXPECTS TO RETIRE FROM THE CHIEF EXECUTIVE POST WHEN HE
TURNS 65 IS SHIFTING HIS FOCUS TO ACQUISITIONS JOINT VENTURES AND BUSINESS
DEVELOPMENT

THE THREE NEW EXECUTIVE VICE PRESIDENTS ARE THOMAS F CHAPMAN 49 WHO WILL
HEAD THE NEW FINANCIAL INFORMATION SERVICES GROUP JEAN CLAUDE CHARTRAND
57 WHO WILL HEAD THE INTERNATIONAL OPERATIONS GROUP AND DEREK V SMITH
37 WHO WILL HEAD THE INSURANCE INFORMATION SERVICES GROUP 9301060115
930106 BUSINESS BRIEF GM'S CHEVROLET TO TRIM ITS OFFERINGS OF PRODUCTS
A DIVISION OFFICIAL SAYS

DETROIT GENERAL MOTORS CORP'S CHEVROLET DIVISION WILL TRIM ITS PRODUCT
OFFERINGS AND CONTINUE TO REDUCE SALES TO RENTAL CAR FLEETS AS PART OF GM'S
EFFORT TO CUT COSTS THE VICE PRESIDENT IN CHARGE OF THE DIVISION SAID

SEPARATELY CHEVROLET DIVISION GENERAL MANAGER JC PERKINS SAID THE
REDESIGNED CHEVROLET CAMARO MUSCLE CAR WILL START AT 13399 WHEN IT GOES ON
SALE LATER THIS MONTH AN INCREASE OF 11 FROM THE PREVIOUS MODEL THE
INCREASE REFLECTS NEW SAFETY FEATURES AND A REDESIGNED BODY

DURING A NEWS CONFERENCE AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW HERE
MR PERKINS ACKNOWLEDGED THAT CHEVROLET HAS BEEN HIT HARD AS GM HAS TRIED TO
WEAN ITSELF FROM USING UNPROFITABLE BULK SALES TO RENTAL CAR FLEETS TO PROP
UP ITS MARKET SHARE IF YOU THINK GIVING UP CIGARETTES IS HARD TRY BACKING
AWAY FROM DAILY RENTAL FLEET BUSINESS HE SAID

THE MOVE AWAY FROM FLEET SALES IS JUST ONE WAY IN WHICH GM'S MASSIVE
COSTCUTTING CRUSADE IS CHANGING STRATEGY AT ITS LARGEST MARKETING DIVISION
ANOTHER IS THAT BY THE MID1990S GM WILL CUT TO THREE FROM FOUR THE NUMBER
OF CHEVROLET SEDAN MODELS IT OFFERS MR PERKINS SAID WE'LL MERGE A COUPLE
OF CAR LINES HE SAID CHEVROLET'S CURRENT SEDANS ARE THE COMPACT CAVALIER
AND CORSICA THE MIDSIZED LUMINA AND THE LARGE CAPRICE

THROUGH MIDDECEMBER CHEVROLET CAR SALES WERE DOWN 142 CHEVROLET
ACCOUNTED FOR 486 OF GM'S TOTAL US VEHICLE SALES BUT MR PERKINS SAID
GM PRESIDENT JOHN F SMITH JR IS COUNTING ON CHEVROLET TO DO 50 OF GM'S
BUSINESS IN THE US AND CHEVY'S CURRENT PERFORMANCE ISN'T QUITE CLOSE
ENOUGH

MEANWHILE MR PERKINS EXPRESSED DOUBTS ABOUT THE STRENGTH OF THE OVERALL
AUTO INDUSTRY RECOVERY TRUCK SALES ARE STRONG BUT IT REMAINS TO BE SEEN
IF WE'LL SEE A BIG SURGE IN CAR BUYING ANY TIME SOON HE SAID

THE CAMARO IS ONE OF SEVERAL NEW MODELS DUE OUT DURING THE NEXT TWO YEARS
THAT MR PERKINS SAID SHOULD HELP CHEVROLET RECOVER FROM ITS CURRENT SALES
SLUMP THE PRICE INCREASE ON THE NEW CAMARO REFLECTS THE ADDITION OF DRIVER
AND PASSENGERSIDE AIR BAGS ANTILOCK BRAKES AND OTHER STANDARD EQUIPMENT
MR PERKINS SAID THE CAR ALSO HAS A RAKISH NEW BODY DESIGN 9301060114
930106 INTERNATIONAL WHEN CLINTON MEETS MEXICO'S SALINAS AGENDAS ON
FREE TRADE MIGHT NOT MESH  BY DIANNA SOLIS STAFF REPORTER OF THE
WALL STREET JOURNAL

MEXICO CITY WHEN PRESIDENTELECT CLINTON SHOWS UP IN TEXAS THIS FRIDAY TO
TALK FREE TRADE WITH MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI HE SHOULD
BE READY FOR HORSETRADING

THE FIRST MEETING BETWEEN THE TWO WILL TAKE PLACE IN AUSTIN AS DEBATE OPENS
IN THE US CONGRESS OVER APPROVAL OF THE NORTH AMERICAN FREETRADE
AGREEMENT PRESIDENTELECT CLINTON HAS SAID HE SUPPORTS NAFTA AS THE TREATY
IS CALLED BUT THAT PARALLEL PACTS ON THE ENVIRONMENT AND LABOR ARE NEEDED

FOR HIS PART PRESIDENT SALINAS SAYS WE HAVE ISSUES THAT WE ARE VERY
INTERESTED IN INTRODUCING  I WOULD NOT CALL THEM PARALLEL AGREEMENTS
BUT ADDITIONAL THEMES OF THE BILATERAL AGENDA

THOUGH MR CLINTON VIEWS NAFTA AS A HIGH PRIORITY A SPOKESMAN SAID THE
INCOMING ADMINISTRATION WON'T SEND MICKEY KANTOR THE DESIGNATED NEW US
TRADE REPRESENTATIVE OR WARREN CHRISTOPHER THE NOMINEE FOR SECRETARY OF
STATE TO THE TEXAS MEETING THE CLINTON CAMP FEARS THEIR PRESENCE COULD
CONVERT THE MEETING INTO A NEGOTIATING SESSION

WE'RE NOT GOING TO GET INTO A LONG DETAILED DISCUSSION OF NAFTA OR
ANYTHING LIKE THAT MR CLINTON SAID MONDAY WE WANT TO GET TO KNOW EACH
OTHER

BUT IN ONCEPROTECTIONIST MEXICO IT IS CLEAR MR SALINAS A
HARVARDEDUCATED ECONOMIST WANTS TO QUICKLY CAPITALIZE ON THE HONEYMOON THE
NEW US PRESIDENT WILL ENJOY WITH CONGRESS THUS IN THE LAST MONTH THE
MEXICAN GOVERNMENT HAS MOVED TO COUNTER NAFTA ADDONS FROM THE US A
CHIEF MEXICAN PROPOSAL IS FOR US HELP TO FINANCE THE CLEANUP THE US
WANTS OF THE MEXICAN SIDE OF THE RAGGED 2000MILE BORDER THE GOVERNMENT
HAS ALSO STEPPED UP CALLS TO END ABUSES OF MEXICANS LABORING IN THE US

MEXICO'S CHIEF EXECUTIVE SAYS THAT ENVIRONMENTAL CONCERNS WILL BE PART OF
THE AGENDA BUT THE COST OF THE BORDER CLEANUP AND INFRASTRUCTURE BUILDUP
SHOULD BE SHARED JOINTLY PRESIDENT SALINAS SAID IN AN INTERVIEW LAST MONTH
THE 12NATION EUROPEAN COMMUNITY HE NOTED HAS A VARIETY OF ASSISTANCE
FUNDS ESTABLISHED TO SUPPORT LESSERDEVELOPED NATIONS WITHIN THE REGION

SAYS JORGE BUSTAMANTE A UNIVERSITY PRESIDENT WHO ADVISED MEXICO'S NAFTA
NEGOTIATORS THE MESSAGE IS GOING TO BE IF YOU WANT MORE IN NAFTA THAT
COSTS MORE YOU HAVE TO FOOT THE BILL

LABOR ISSUES ARE LIKELY TO BE PARTICULARLY THORNY SAYS DR BUSTAMANTE
PRESIDENTELECT CLINTON IS UNDER CONSIDERABLE PRESSURE TO PROVIDE RETRAINING
FOR US WORKERS DISPLACED BY NAFTA AND US LABOR UNIONS ARE POINTING TO
POTENTIAL UNFAIR COMPETITION FROM MEXICAN WORKERS INCLUDING CHILD LABORERS
IN MEXICO THE DAILY MINIMUM WAGE IS ABOUT EQUAL TO THE HOURLY MINIMUM WAGE
OF THE US

IN MEXICO THOUGH WHEN THE US SPEAKS OF LABOR MEXICANS THINK OF
MIGRATION MANY MEXICAN IMMIGRANTS WORK UNDER SUBSTANDARD CONDITIONS IN THE
US NOTES DR BUSTAMANTE WHO IS CLEAN TO SPEAK ABOUT LABOR STANDARDS
ASKS THE ACADEMIC TESTILY

MOREOVER THE UPWARD HARMONIZATION OF LABOR STANDARDS SUGGESTED BY SOME
US POLITICIANS AND ACTIVISTS COULD BE COSTLY FOR THE US CONSIDER JUST
THIS EXAMPLE MEXICAN SEVERANCE PAY FOR A FIRED WORKER IS GENERALLY EQUAL TO
THREE MONTHS' PAY PLUS 20 DAYS' WAGES FOR EACH YEAR WORKED

AGREEMENT ON THE ENVIRONMENT COULD HIT SNAGS AS WELL MR CLINTON HAS SAID
HE'D LIKE TO ESTABLISH A BILATERAL ENVIRONMENTAL COMMISSION BUT AIDES TO
MR SALINAS SAY A COMMISSION WITH ENFORCEMENT AUTHORITY INVITES A FIGHT OVER
NATIONAL SOVEREIGNTY

ALSO MEXICO'S REQUEST FOR CLEANUP FUNDS WILL NOT BE EASY FOR MR CLINTON TO
ACCEPT SALLY SHELTON AN INVESTOR CONSULTANT AND SENIOR FELLOW AT
GEORGETOWN UNIVERSITY SAYS THAT GIVEN THE US DEBT LOAD OF MORE THAN 3
TRILLION IT IS UNLIKELY THE US WILL BE SPENDING MORE MEXICO'S FOREIGN
DEBT MEXICO HAS A PUBLICSECTOR FOREIGN DEBT OF ABOUT 73 BILLION

FAR MORE INVITING WOULD BE CHANGES IN MEXICO'S FOREIGN INVESTMENT LAW
SUGGESTS MS SHELTON LATE LAST YEAR MEXICO ANNOUNCED IT WOULD REVAMP ITS
FOREIGN INVESTMENT LAW THOUGH THE PROPOSED LAW WAS EXPECTED TO BE DEBATED
IN THE MEXICAN CONGRESS BEFORE CHRISTMAS ITS DELIVERY HAS BEEN DELAYED

SOME MEXICO CITY LAWYERS SAY THE GOVERNMENT IS WITHHOLDING THE LARGELY
INVESTORFRIENDLY DOCUMENT UNTIL THE SALINAS ADMINISTRATION IS CERTAIN OF
NAFTA'S PASSAGE THE NEW LAW IS EXPECTED TO BOOST FOREIGNINVESTOR
CONFIDENCE BY TAKING MANY EXISTING REGULATIONS TO THE FIRMER STATUS OF LAW
9301060113 930106 GENERAL DYNAMICS UNITED TECHNOLOGIES SETTLE A12
RADAR SUIT

HARTFORD CONN UNITED TECHNOLOGIES CORP SAID ITS NORDEN SYSTEMS INC
UNIT AND GENERAL DYNAMICS CORP SETTLED A THREEYEAROLD LAWSUIT RELATED TO
THE A12 AIRCRAFT RADAR SYSTEM

GENERAL DYNAMICS WAS A PRIME CONTRACTOR FOR THE A12 A CARRIERBASED ATTACK
AIRCRAFT LATER ABANDONED BY THE NAVY DUE TO COST AND SCHEDULING PROBLEMS

NORDEN BASED IN NORWALK CONN HAD SUED GENERAL DYNAMICS AFTER BEING
DROPPED AS THE A12'S RADAR SUPPLIER BECAUSE GENERAL DYNAMICS MAINTAINED
THAT NORDEN DIDN'T MEET THE TERMS OF THE CONTRACT ACCORDING TO A UNITED
TECHNOLOGIES SPOKESWOMAN

UNDER THE SETTLEMENT NORDEN SAID IT WILL RETAIN PROGRESS PAYMENTS FOR PAST
WORK ON THE RADAR PROGRAM AND WILL RECEIVE ADDITIONAL PAYMENT FROM GENERAL
DYNAMICS TOWARDS THE SETTLEMENT OF THE DISPUTE SPECIFIC TERMS WEREN'T
DISCLOSED

GENERAL DYNAMICS FALLS CHURCH VA WILL ALSO DISMISS ALL COUNTERCLAIMS
UNITED TECHNOLOGIES SAID GENERAL DYNAMICS SAID IT HAD NO ADDITIONAL
COMMENT 9301060112 930106 PEPPERAND SALT

THEY JUST LOOKED OUT THEIR WINDOWS

SHOW ACADEMIC RESISTANCE

BY PROFESSORS BUT BY THEIR ASSISTANTS

NATION'S DEFICIT FED ACHE 9301060111 930106 LETTERS TO THE EDITOR 
JOHNSON SAID IT

JOHNSONIANS FROM LOS ANGELES TO LONDON WILL CLIMB ALL OVER POOR FREDERICK C
KLEIN FOR A WRONG ATTRIBUTION TO HL MENCKEN FOR THE LEAD IN HIS DEC 4
LEISURE & ARTS COLUMN ABOUT SOUTH BEND

IN BOSWELL'S LIFE OF JOHNSON MAY BE FOUND THE FAMOUS QUOTATION WHICH I
GIVE HERE IN ITS ENTIRETY A GENTLEMAN WHO HAD BEEN VERY UNHAPPY IN
MARRIAGE MARRIED IMMEDIATELY AFTER HIS WIFE DIED JOHNSON SAID IT WAS THE
TRIUMPH HOPE OVER EXPERIENCE 9301060110 930106 CORRECTIONS &
AMPLIFICATIONS

DU PONT CO EMPLOYEES WORKING OVERSEAS WON'T BE AFFECTED BY A PLANNED
REDUCTION IN HEALTH BENEFITS FOR CURRENT AND FORMER EMPLOYEES OF THE
COMPANY'S US CHEMICAL DIVISION IN AN ARTICLE YESTERDAY IT WAS
INCORRECTLY STATED THAT OVERSEAS EMPLOYEES ALSO WOULD HAVE THEIR HEALTH
BENEFITS TRIMMED 9301060109 930106 HEALTH EPA DECLARES PASSIVE' SMOKE
A HUMAN CARCINOGEN  BY TIMOTHY NOAH STAFF REPORTER OF THE WALL
STREET JOURNAL

WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY HAS CONCLUDED THAT
PASSIVE TOBACCO SMOKE IS A HUMAN LUNG CARCINOGEN A DECISION THAT IS
LIKELY TO GENERATE DEMANDS FOR DRASTIC NEW CURBS ON SMOKING IN WORKPLACES
AND PUBLIC PLACES

THE EPA ALSO FOUND THAT FOR YOUNG CHILDREN EXPOSURE TO PASSIVE SMOKE
INCREASES RISK OF BRONCHITIS AND PNEUMONIA ASTHMA AND DISTURBANCES IN THE
MIDDLE EAR AND LUNGS

THE REPORT CAPS TWO YEARS OF WRANGLING BETWEEN THE EPA AND TOBACCO COMPANIES
OVER THE DANGERS OF PASSIVE SMOKING AND MAY PROD THE FEDERAL OCCUPATIONAL
SAFETY AND HEALTH ADMINISTRATION TO CRAFT TIGHTER REGULATIONS ON SMOKING IN
THE WORKPLACE BUT ITS ULTIMATE IMPACT WILL DEPEND ON THE EAGERNESS OF THE
INCOMING CLINTON ADMINISTRATION TO TACKLE THE ISSUE AND THE ABILITY OF
LAWYERS TO EXPLOIT A POTENTIALLY LUCRATIVE NEW AREA OF LIABILITY FOR
COMPANIES THAT ALLOW SMOKING ON THEIR PREMISES

THE FINDINGS ARE IN A FINAL REPORT TO BE ISSUED BY THE EPA TOMORROW THE
REPORT WHICH FOLLOWS A SERIES OF DRAFTS ON THE HEALTH EFFECTS OF TOBACCO
SMOKE ON NONSMOKERS WILL HAVE PROFOUND REVERBERATIONS IN THE COUNTRY
ACCORDING TO DEPARTING EPA ADMINISTRATOR WILLIAM REILLY IN AN INTERVIEW
LAST MONTH MR REILLY PREDICTED THAT THE REPORT WOULD REPRESENT ONE OF THE
BIGGEST DECISIONS I EVER WILL MAKE

IN THE INTERVIEW MR REILLY SAID THAT AN EPA DECISION TO DECLARE PASSIVE
SMOKE AN ENVIRONMENTAL HEALTH RISK COULD SUBSTANTIALLY INCREASE THE LEGAL
LIABILITY OF BUSINESSES IF YOU WERE RUNNING A BAR OR AN AIRLINE OR A BODY
SHOP OR WHATEVER HE SAID AND YOU SAW YOUR PEOPLE SMOKING OR YOU ALLOWED
CUSTOMERS TO SMOKE YOU'D BE OPENING YOURSELF UP 10 YEARS 15 YEARS LATER TO
LAWSUITS AND PEOPLE WOULD BE ABLE TO SAY YOU KNEW YOU WERE EXPOSING US TO
CANCER THERE WASN'T ANY DOUBT ABOUT THE ISSUE THE GOVERNMENT HAS SPOKEN ON
THE QUESTION

BUT STEVE PARRISH SENIOR VICE PRESIDENT FOR EXTERNAL AFFAIRS AT PHILIP
MORRIS COS' PHILIP MORRIS USA DISPUTES MR REILLY'S CONCLUSION
DECLARING THERE IS NO STATISTICALLY SIGNIFICANT INCREASED RISK OF LUNG
CANCER FROM EXPOSURE TO PASSIVE SMOKE OR ENVIRONMENTAL TOBACCO SMOKE IN
SOCIAL SETTINGS HE PREDICTS LEGAL CHALLENGES WOULD FAIL BECAUSE ONE OF
THE IMPORTANT THINGS THAT SOMEBODY IS GOING TO HAVE TO SHOW TO WIN A LAWSUIT
IS CAUSATION

SINCE THE INITIAL DRAFT OF THE REPORT WAS RELEASED IN 1990 TOBACCO
INTERESTS AND SUPPORTERS IN CONGRESS SUCH AS DEMOCRATIC REP THOMAS BLILEY
JR OF VIRGINIA HAVE QUARRELED RELENTLESSLY WITH ITS CONCLUSIONS THERE IS
A MINDSET THAT WE WANT TO DISCOURAGE PEOPLE FROM SMOKING MR PARRISH
SAYS IF ONE OF THE THINGS THAT SUPPORTS THAT IS TO MAKE CLAIMS ABOUT THE
HEALTH EFFECTS OF PASSIVE SMOKING HE SAYS THEN THE EPA IS WILLING TO
MAKE THOSE CLAIMS AND ADJUST THE SCIENCE TO FIT THE POLICY

BUT AN EPA OFFICIAL SAYS THAT THE REPORT ELIMINATED A PREVIOUSLY PLANNED
SECTION ON PASSIVE SMOKING AND HEART DISEASE BECAUSE AGENCY SCIENTISTS FOUND
THE LINK DIDN'T APPEAR TO BE AS GREAT AS THAT BETWEEN PASSIVE SMOKING AND
LUNG CANCER PREVIOUS STUDIES HAVE SHOWN THAT INDIVIDUALS WHO SMOKE
CIGARETTES HAVE A GREATER RISK OF HEART DISEASE

ACCORDING TO THE REPORT PASSIVE SMOKE IS RESPONSIBLE FOR ABOUT 3000 LUNG
CANCER DEATHS EACH YEAR IN THE US IN ADDITION THE REPORT ESTIMATES THAT
NONSMOKERS' EXPOSURE TO SMOKE TRANSLATES INTO BETWEEN 150000 AND 300000
CASES OF BRONCHITIS AND PNEUMONIA EVERY YEAR IN YOUNG CHILDREN AGED UP TO 18
MONTHS BETWEEN 7500 AND 15000 OF THESE CASES RESULT IN HOSPITALIZATION
THE EPA REPORT SAYS

THE REPORT SAYS THAT PASSIVE SMOKE WORSENS ASTHMA SYMPTOMS FOR 200000 TO
ONE MILLION CHILDREN YEARLY AND INCREASES THE CHANCES THAT CHILDREN WHO
DON'T HAVE ASTHMA WILL GET IT IT ALSO STATES THAT EXPOSURE TO TOBACCO SMOKE
CAN INCREASE FLUID IN THE MIDDLE EAR LEADING TO INFECTION

THE FINDINGS REGARDING CHILDREN WILL LIKELY HAVE THE GREATEST IMMEDIATE
IMPACT SAYS CLIFF DOUGLAS TOBACCO POLICY DIRECTOR FOR THE ADVOCACY
INSTITUTE A NONPROFIT GROUP FOCUSING ON CONSUMER HEALTH AND SAFETY ISSUES
IN THE LONG RUN I THINK THIS WILL LEAD TO ELIMINATION OF SMOKING IN PUBLIC
PLACES AND IN THE WORKPLACE HE SAYS BUT IN THE SHORT RUN IT SHOULD
CERTAINLY LEAD TO ELIMINATION OF SMOKING IN ALL LOCATIONS WHERE CHILDREN
FACE EXPOSURE

ANTISMOKING ACTIVISTS LIKELY WILL USE THE REPORT TO PRESS STATE LEGISLATURES
TO BAN SMOKING AT DAY CARE CENTERS PRESCHOOLS AND SCHOOLS MANY STATES
HAVE NO REQUIREMENTS WHATSOEVER SAYS FRAN DUMELLE DEPUTY MANAGING
DIRECTOR OF THE AMERICAN LUNG ASSOCIATION MS DUMELLE ALSO FORESEES MORE
AND MORE PUBLIC PLACES THAT RESTRICT SMOKING WORKSITES IN PARTICULAR SHE
SAYS THE REPORT'S IMPACT WILL LIKELY BE GREATER ON SCHOOLS AND WORKPLACES
THAN ON SUCH PUBLIC PLACES AS BARS AND RESTAURANTS BECAUSE THE GREATEST RISK
FROM PASSIVE SMOKING COMES WITH REPEATED DAILY EXPOSURE CURRENTLY 44
STATES HAVE SOME FORM OF RESTRICTION ON SMOKING AT WORKSITES

THE REPORT ALSO IS EXPECTED TO PUT ADDITIONAL PRESSURE ON OSHA TO BAN
SMOKING IN THE WORKPLACE OSHA HAS ISSUED A REQUEST FOR INFORMATION
CALLING FOR PUBLIC COMMENT ON WHETHER IT SHOULD ISSUE A RULE GOVERNING
INDOOR AIR QUALITY INCLUDING THE IMPACT OF PASSIVE SMOKE BUT IT HAS BEEN
SLOW TO MOVE ON THE MATTER THE REQUEST FOR INFORMATION WAS PUBLISHED IN THE
FEDERAL REGISTER MORE THAN A YEAR AGO AND OSHA HASN'T YET FIXED A DEADLINE
BY WHICH IT WILL DECIDE WHETHER IT WILL ISSUE A REGULATION

CERTAINLY THE INFORMATION IN THE EPA REPORT WILL BE HELPFUL IN THAT
PROCESS SAYS OSHA SPOKESMAN DOUGLAS FULLER BUT WE'LL HAVE TO WAIT TO SEE
WHAT THE REPORT SAYS HE ADDS THAT THE FATE OF ANY RULE WILL BE DETERMINED
BY THE INCOMING CLINTON ADMINISTRATION

IN THE INTERVIEW LAST MONTH MR REILLY SAID EPA HAD PUT TOGETHER AN OFFICE
POLICY GUIDE ON HOW TO CREATE A SMOKEFREE OFFICE ENVIRONMENT BUT HE HAD
DECIDED NOT TO RELEASE IT BECAUSE IT WOULD LOOK LIKE WE'RE TRYING TO TORQUE
THE SCIENCE AND I THINK THE SCIENCE WILL BE COMPELLING ENOUGH HE SAID THE
GUIDE COULD BE ISSUED LATER BY HIS SUCCESSOR CAROL BROWNER HE ALSO SAID
THAT I DON'T THINK YOU'LL EVEN NEED OSHA TO FOLLOW THROUGH ON THE EPA
REPORT FOR IT TO HAVE AN IMPACT I THINK REALLY THE LIABILITY QUESTION WILL
DRIVE IT 9301060108 930106 WHO'S NEWS CENTRAL & SOUTHERN HOLDING CO

CENTRAL & SOUTHERN HOLDING CO MILLEDGEVILLE GA ROBERT C OLIVER 45
YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK
HOLDING COMPANY SUCCEEDING JERRY M MCREE 64 WHO RETIRED FROM THE POSTS
OF CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT MR OLIVER PREVIOUSLY
SERVED AS PRESIDENT OF CENTRAL & SOUTHERN BANK OF GEORGIA THE HOLDING
COMPANY'S LARGEST SUBSIDIARY BANK ALBERT F GANDY 59 A CURRENT DIRECTOR
WAS NAMED CHAIRMAN 9301060107 930106 TECHNOLOGY INTEL CORP NAMES A
TOP EXECUTIVE TO OPERATING POST  BY KEN YAMADA STAFF REPORTER OF
THE WALL STREET JOURNAL

INTEL CORP PROMOTED A PROMINENT EXECUTIVE CRAIG BARRETT TO THE POST OF
CHIEF OPERATING OFFICER IN A MOVE THAT SOLIDIFIES HIS POSITION AS MOST
LIKELY SUCCESSOR TO THE COMPANY'S CHIEF EXECUTIVE ANDREW GROVE

THE 53YEAROLD MR BARRETT WHO WILL RETAIN HIS TITLE OF EXECUTIVE VICE
PRESIDENT IS ALREADY PART OF A TIGHT CIRCLE OF TOP INTEL EXECUTIVES THAT
INCLUDES INTEL FOUNDERS MR GROVE AND GORDON MOORE THE COMPANY'S CHAIRMAN
MR BARRETT WAS NAMED TO THE BOARD IN APRIL

MR BARRETT'S NEW TITLE IS LARGELY SYMBOLIC BECAUSE HE HAS BEEN OVERSEEING
MOST OF INTEL'S DAYTODAY OPERATIONS SINCE 1989 WHEN MR GROVE BEGAN TO
RELINQUISH CONTROL OF THOSE DUTIES BUT THE NEW TITLE LEAVES LITTLE DOUBT
THAT INTEL IS CONTINUING TO GROOM MR BARRETT AS MR GROVE'S HEIR APPARENT
THE POSITION OF CHIEF OPERATING OFFICER HAS BEEN VACANT SINCE MR GROVE
DROPPED THE TITLE IN 1987 TO BECOME CHIEF EXECUTIVE AND MR BARRETT BECOMES
THE FIRST NONFOUNDER TO HOLD THE POST

MR BARRETT WHO LEFT HIS POST AS AN ASSOCIATE PROFESSOR OF MATERIALS
SCIENCE AT STANFORD UNIVERSITY TO JOIN INTEL IN 1974 SAW HIS INFLUENCE GROW
IN THE LATE 1980S IN TANDEM WITH INTEL'S BOOMING FORTUNES IN AN INTERVIEW
MR GROVE SAID MR BARRETT DID A BANGUP JOB AFTER TAKING OVER INTEL'S
MANUFACTURING OPERATIONS IN 1985 MR BARRETT OVERSAW INTEL'S MICROPROCESSOR
OPERATIONS IN THE LATE 1980S WHEN THE COMPANY WAS CONSOLIDATING ITS DOMINANT
POSITION IN THE MARKET FOR THE CHIPS WHICH ARE USED AS THE BRAINS OF
PERSONAL COMPUTERS

MR BARRETT HAS HEADED THE SANTA CLARA CALIF CHIP MAKER'S MANUFACTURING
OPERATIONS FOR THE PAST THREE YEARS BUILDING NEW FACTORIES THAT HAVE HELPED
INTEL CHURN OUT THE NEW CHIP GENERATIONS THAT ARE KEEPING IT A STEP AHEAD OF
ITS RIVALS WE NEEDED TO SCRAMBLE AND BUILD CAPACITY MR GROVE SAID
CRAIG HAS BEEN RESPONSIBLE FOR THE MACHINERY TO DO IT

INTEL CONTINUED TO GROW DURING MR BARRETT'S TENURE AS EXECUTIVE VICE
PRESIDENT DESPITE A TROUBLED CHIP MARKET AND THE COMPANY LAST YEAR
SURPASSED TWO JAPANESE MAKERS TO BECOME THE WORLD'S NO 1 CHIP MAKER IN
SALES ACCORDING TO ESTIMATES BY DATAQUEST INC A MARKET RESEARCH FIRM

MR GROVE SAID MR BARRETT'S OVERSEEING OPERATIONS HAS ALLOWED THE CHIEF
EXECUTIVE TO CONCENTRATE ON AREAS SUCH AS STRATEGY AND BUILDING BUSINESS
RELATIONSHIPS MR GROVE 56 SAID THAT HE ONCE EXPECTED TO RETIRE FIVE
YEARS AFTER BECOMING CHIEF EXECUTIVE BUT ADDED THAT HE HAS NO IMMEDIATE
PLANS TO STEP DOWN 9301060106 930106 BUSINESS BRIEFS

PLAINS RESOURCES INC AGREED TO STORE AS MUCH AS 500000 BARRELS OF CRUDE
OIL FOR A UNIT OF ATLANTIC RICHFIELD CO

ALTA ENERGY CORP HAS OBTAINED 16 MILLION IN FINANCING FROM SEVERAL
LENDERS ENABLING THE COMPANY TO START DRILLING 42 OIL WELLS IN NEW MEXICO

UPJOHN CO PLANS TO EXPAND ITS PHARMACEUTICAL CHEMICAL PLANT IN VAL DE
REUIL FRANCE AT AN ESTIMATED COST OF 35 MILLION

VARITY CORP SOLD ITS DAYTON PARTS UNIT A MAKER OF TRUCK AND TRAILER
AFTERMARKET PRODUCTS TO JPE INC ANN ARBOR MICH FOR ABOUT 20 MILLION

UNISYS CORP RECEIVED A 57 MILLION CONTRACT FOR A16 MAINFRAME COMPUTERS
FROM FRITZ COS SAN FRANCISCO 9301060104 930106 WHO'S NEWS TOSCO
CORP

TOSCO CORP STAMFORD CONN DWIGHT L WIGGINS 52 YEARS OLD WAS NAMED
PRESIDENT OF BAYWAY REFINING CO A NEW UNIT OF THIS INDEPENDENT REFINER AND
WHOLESALE MARKETER OF PETROLEUM PRODUCTS AND PHOSPHATEBASED FERTILIZER
PRODUCTS BAYWAY REFINING CO WILL OWN AND OPERATE THE BAYWAY REFINERY IN
LINDEN NJ AFTER ITS ACQUISITION FROM EXXON CO USA IS COMPLETE MR
WIGGINS RESIGNED MONDAY AT EXXON CORP'S EXXON CO USA DIVISION WHERE HE
HAD PREVIOUSLY MANAGED THE BAYWAY REFINERY AS WELL AS EXXON'S BENECIA
REFINERY IN THE SAN FRANCISCO BAY AREA OF CALIFORNIA 9301060103 930106
INTERNATIONAL BANGALORE TAKES ON TASKS A WORLD AWAY  FOREIGN
COMPANIES FLOCK TO INDIA'S HIGHTECH CAPITAL  BY MARCUS W
BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL

BANGALORE INDIA IT'S LATE MORNING AT THE MODERN OFFICES OF TEXAS
INSTRUMENTS INDIA PVT LTD AND A HANDFUL OF YOUNG INDIAN ENGINEERS ARE
BUSY TRYING TO SOLVE PROBLEMS A DOZEN TIME ZONES AWAY

DAYTON HUDSON CORP'S TARGET CHAIN OF US DISCOUNT STORES WANTS ITS
AUTOMATED INVENTORY SYSTEMS CUSTOMIZED TELEFON AB LM ERICSSON OF SWEDEN
NEEDS A NEW DIGITALSIGNAL PROCESSOR ITS US RIVAL AMERICAN TELEPHONE &
TELEGRAPH CO WANTS A TAILORMADE PROGRAMMABLE CHIP

THAT SUCH BUSINESS SHOULD HAVE TRAVELED HALFWAY AROUND THE WORLD TO THIS
SOUTHERN INDIAN CITY OFFERS AN INTRIGUING GLIMPSE OF A FUTURE IN WHICH A
TALENTRICH DEVELOPING COUNTRY CAN FIND A NICHE IN THE GLOBAL ECONOMY FOR
INDIA THOUGH BANGALORE IS A MORE IMMEDIATE ACCOMPLISHMENT A HIGHTECH
CENTER THAT NOT ONLY SUPPLIES THE COUNTRY'S SWELLING DOMESTIC COMPUTER
MARKET BUT ALSO MEETS FASTGROWING DEMAND FOR HIGHVALUE SOFTWARE EXPORTS

THE WORLD HAS BECOME ALMOST BORDERLESS SAYS MAYA REDDI A USEDUCATED
VICE PRESIDENT AT DIGITAL EQUIPMENT INDIA LTD

WHAT DIGITAL EQUIPMENT CORP IS DOING IN BANGALORE BREATHES LIFE INTO A
NOTION FAVORED BY A NEW BREED OF GLOBALMINDED THINKERS INCLUDING
PRESIDENTELECT CLINTON'S LABOR SECRETARYDESIGNATE ROBERT REICH THAT
COMPANIES WILL PUT THEIR HIGHVALUE JOBS IN PLACES WHERE THE BEST CHEAPEST
TALENT IS AVAILABLE DIGITAL USES ITS INDIAN JOINT VENTURE NOT ONLY TO MAKE
AND SELL PERSONAL AND MAINFRAME COMPUTERS IN INDIA BUT TO DESIGN
SOPHISTICATED SOFTWARE FOR EXPORT NOTING THAT MANY DIGITAL ENGINEERS FROM
INDIA NOW TEACH COURSES OR MEET CLIENTS IN ASIA AND THE US MS REDDI
SAYS YOU CAN OPERATE OUT OF INDIA TODAY AND GO ANYWHERE

HAVING DISCOVERED THAT MANY BIG TECHNOLOGY COMPANIES ARE REPRESENTED IN
BANGALORE THROUGH WHOLLY OWNED EXPORT UNITS OR DOMESTIC JOINT VENTURES
TEXAS INSTRUMENTS INC MOTOROLA INC HEWLETTPACKARD CO APPLE COMPUTER
INC SUN MICROSYSTEMS INC AND INTEL CORP HAVE OPERATIONS HERE DELL
COMPUTER CORP IS PLANNING A PLANT TO MANUFACTURE COMPUTER MOTHERBOARDS FOR
EXPORT

EVEN INTERNATIONAL BUSINESS MACHINES CORP PLANS TO MAKE PERSONAL COMPUTERS
FOR THE INDIAN MARKET AND PRODUCE SOFTWARE FOR EXPORT VIA SATELLITE IN A
CELEBRATED CONFRONTATION 15 YEARS AGO IBM ONE OF THE FIRST BIG COMPUTER
COMPANIES TO DO BUSINESS IN INDIA ABANDONED THE MARKET WHEN THE GOVERNMENT
INSISTED THAT IT DILUTE OWNERSHIP OF ITS INDIAN SUBSIDIARY AND TAKE A
DOMESTIC PARTNER

TIMES HAVE CHANGED BOTH FOR IBM WHICH RECENTLY FORMED A 20 MILLION JOINT
VENTURE WITH INDIA'S BIGGEST INDUSTRIAL CONCERN TATA GROUP AND FOR INDIA
WHICH IS PROMOTING ECONOMIC REFORMS TO ATTRACT FOREIGN COMPANIES THE WORD
IS OUT SAYS ANAL K JAIN VICE PRESIDENT FOR MARKETING AT TATA INFORMATION
SYSTEMS LTD THE IBMTATA JOINT VENTURE THIS IS EMERGING AS A KEY
CENTER

FOR THE FOREIGN COMPUTER COMPANIES INDIA IS A SPRINGBOARD TO SEVERAL
MARKETS THERE IS INDIA'S SMALL BUT GROWING PERSONAL COMPUTER MARKET IN A
COUNTRY OF 850 MILLION ONLY ABOUT 100000 PERSONAL COMPUTERS WITH A TOTAL
VALUE OF 350 MILLION WERE SOLD LAST YEAR ANNUAL PC SALES ARE EXPECTED TO
MORE THAN DOUBLE IN THE NEXT FIVE YEARS DESPITE STILLSTEEP DUTIES OF 146
AND THE RESULTING SMUGGLING OF CLONES MADE ELSEWHERE IN ASIA THERE'S ALSO
THE EXPORT MARKET SKILLED LABOR IS RELATIVELY CHEAP SO HARDWARE COMPANIES
CAN ASSEMBLE THEIR PRODUCTS HERE FOR SHIPMENT ABROAD FINALLY THERE'S THE
FASTGROWING INTERNATIONAL SOFTWARE MARKET INDIAN ENGINEERS ARE AMONG THE
WORLD'S BEST AT MEETING THE COMPLEX PROGRAMMING NEEDS OF BIG COMPUTER
COMPANIES

EVEN DOMESTIC COMPANIES ARE JOINING IN ONE OF INDIA'S BIGGEST SOFTWARE
CONCERNS IS CMC LTD A STATEOWNED COMPANY ORIGINALLY SET UP TO SERVICE IBM
PRODUCTS AFTER THE US COMPANY PULLED OUT FAR FROM BEING A STODGY
PUBLICSECTOR GIANT THE COMPANY HAS BECOME INTERNATIONALLY AGGRESSIVE
DESIGNING SOFTWARE PACKAGES FOR AIRLINES THE LONDON SUBWAY SYSTEM AND A
NUMBER OF INTERNATIONAL ATHLETIC EVENTS

THE GLOBALIZATION OF SOFTWARE MEANS THE USER IS IN ONE COUNTRY THE
DEVELOPER IN ANOTHER PLACE THE PROJECT MANAGER IN ANOTHER SAYS KRM
RAO A CMC PROJECT MANAGER

OUR HOPE IS THAT WITH INDIA'S ECONOMIC LIBERALIZATION AND THE MARKET
OPENING UP INFORMATION REQUIREMENTS WILL BECOME CRITICAL IN INDIA TOO AND
THE MARKET FOR COMPUTERS WILL BOOM SAYS VEER SAGAR CHIEF EXECUTIVE OF DCM
DATA PRODUCTS LTD AN INDIAN COMPANY THAT HAS TALKED TO TEXASBASED COMPAQ
COMPUTER CORP ABOUT A MANUFACTURING VENTURE HERE

BANGALORE HAS BECOME A HIGHTECH CENTER FOR SEVERAL REASONS AT AN ELEVATION
OF MORE THAN 3000 FEET BANGALORE'S CLIMATE IS TEMPERATE YEARROUND 
ENOUGH LIKE CALIFORNIA'S SILICON VALLEY THAT LOCAL OFFICIALS CALL IT INDIA'S
SILICON PLATEAU ITS WIDE STREETS ARE LINED WITH SHADE TREES DATING TO THE
DAYS WHEN BANGALORE WAS A CANTONMENT AREA FOR THE BRITISH ARMY

MORE IMPORTANT BANGALORE IS A MAJOR RESEARCH AND ENGINEERING CENTER IN
INDIA THE TOP BRANCH OF ONE OF THE COUNTRY'S PREMIER TECHNOLOGY
UNIVERSITIES THE INDIAN INSTITUTE OF SCIENCE IS HERE AS IS ONE OF THE
COUNTRY'S TOP BUSINESS SCHOOLS THE INDIAN INSTITUTE OF MANAGEMENT SINCE
THE 1950S THE NATIONAL GOVERNMENT HAS CENTERED HIGHTECH STATE INDUSTRIES
AND RESEARCH LABS INCLUDING ITS NUCLEAR AND SPACERESEARCH OPERATIONS IN
BANGALORE THE LOCAL GOVERNMENT ESTIMATES 12000 ENGINEERS INCLUDING
SEVERAL HUNDRED WITH DOCTORATES WORK IN OR AROUND BANGALORE

WE CAME FOR THE TALENT SAYS RICHARD GALL MANAGING DIRECTOR OF TEXAS
INSTRUMENTS' WHOLLY OWNED SUSIDIARY HERE WE COULDN'T FIND ENOUGH
ENGINEERING TALENT IN THE MID'80S IN THE US BUT HERE THERE ARE PLENTY OF
SMART PEOPLE

NO LESS IMPORTANT IS WHAT INDIAN OFFICIALS DESCRIBE AS BANGALORE'S REAL
COMPETITIVE ADVANTAGE MOST SOFTWARE AND COMPUTER ENGINEERING IS DONE IN
ENGLISH WHICH HAPPENS TO BE THE PRIMARY LANGUAGE OF THE EDUCATED CLASSES IN
INDIA YET INDIA WITH ITS LARGELY RURAL POPULATION REMAINS A POOR COUNTRY
WITH A PERCAPITA ECONOMIC OUTPUT OF LESS THAN 500 EVEN THE MIDDLE CLASSES
IN THIS COUNTRY GENERALLY EARN ONLY 100 A MONTH FOREIGNEMPLOYED ENGINEERS
IN BANGALORE OFTEN MAKE FIVE TO 10 TIMES THAT MUCH

FOR US COMPUTER COMPANIES WHO MUST PAY SIXFIGURE ANNUAL SALARIES TO GOOD
ENGINEERS IN THE US OR EUROPE THE COMBINATION IS HIGHLY ATTRACTIVE SOME
EVEN HAVE BEEN CRITICIZED IN INDIA FOR POACHING CHEAP ENGINEERS FROM
COMPANIES HERE THEN USING THEM ON OVERSEAS ASSIGNMENTS INSTEAD OF HIRING
ABROAD WE DON'T BODY SHOP SAYS DIGITAL'S MS REDDI BUT AT A NEW DELHI
SOFTWARE CONFERENCE IN DECEMBER A PANEL DEVOTED AN HOUR TO VISA PROBLEMS
FOR INDIAN ENGINEERS

SUMAN DUBEY IN NEW DELHI CONTRIBUTED TO THIS ARTICLE 9301060102 930106
BUSH MAY DISMISS POSTAL GOVERNORS OVER RATE APPEAL  BY KEVIN G
SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON A MAJORITY OF POSTAL SERVICE GOVERNORS MAY BE FIRED BY
PRESIDENT BUSH AFTER SEVEN OF THE 11 BOARD MEMBERS DECIDED TO CONTINUE
THEIR APPEAL OF THE LATEST POSTALRATE INCREASE DESPITE A WHITE HOUSE ORDER

ADMINISTRATION OFFICIALS PLAN TO HUDDLE TODAY TO DETERMINE WHAT TO DO ABOUT
A LETTER FROM FIVE GOVERNORS THE POSTMASTER GENERAL AND HIS DEPUTY
REBUTTING THE PRESIDENT'S DIRECTIVE TO END THEIR APPEAL OF THE JANUARY 1991
RATE INCREASE

THAT RATE INCREASE WHICH WAS MANDATED BY THE INDEPENDENT POSTAL RATE
COMMISSION RAISED THE COST OF MAILING A ONEOUNCE FIRSTCLASS LETTER TO 29
CENTS FROM 25 CENTS BUT THE FOURCENT INCREASE A PENNY LESS THAN THE
POSTAL SERVICE HAD REQUESTED WAS A REBUFF TO THE AGENCY WHICH VOTED TO
APPEAL THE COMMISSION'S DECISION TO THE US COURT OF APPEALS

IN SUCH APPEALS THE JUSTICE DEPARTMENT CAN REPRESENT THE POSTAL SERVICE
BUT AFTER THE DEPARTMENT REFUSED TO SERVE AS THE POSTAL SERVICE'S COUNSEL
THE SERVICE CHOSE TO REPRESENT ITSELF THAT INFURIATED THE JUSTICE
DEPARTMENT WHICH LAST OCTOBER THREATENED TO DERAIL THE APPEAL

THE MATTER BOILED OVER DEC 11 WHEN MR BUSH DIRECTED THE AGENCY TO WITHDRAW
ITS APPEAL THE POSTAL SERVICE REFUSED AND ON MONDAY MR BUSH THREATENED
I WILL IF NECESSARY EXERCISE MY AUTHORITY TO REMOVE GOVERNORS OF THE
POSTAL SERVICE UNLESS THEY EXPLAIN THEIR ACTIONS AND END THEIR APPEAL

THE POSTAL SERVICE IS AN INDEPENDENT AGENCY THOUGH THE NINE GOVERNORS ARE
APPOINTED BY THE PRESIDENT THE POSTMASTER GENERAL AND DEPUTY WHO ARE ALSO
BOARD MEMBERS ARE APPOINTED BY THE GOVERNORS

ON MONDAY THE BOARD FOUGHT BEHIND CLOSED DOORS OVER HOW TO RESPOND TO THE
PRESIDENT'S MANDATE SOME MEMBERS WANTED TO COMPLY WITH THE ORDER BUT WHEN
GOV ROBERT SETRAKIAN MOVED FOR A VOTE TO COMPLY ACCORDING TO PEOPLE AT THE
MEETING HE FACED FIERCE OPPOSITION FROM THE MAJORITY WHO WORRIED THAT THE
JUSTICE DEPARTMENT WOULD THEN WREST AWAY THE BOARD'S AUTHORITY TO DETERMINE
WHEN TO APPEAL A RATE DECISION

MR SETRAKIAN'S MOTION WAS THEN AMENDED AND SEVEN BOARD MEMBERS 
INCLUDING OUTGOING CHAIRWOMAN NORMA PACE POSTMASTER GENERAL MARVIN RUNYON
AND HIS DEPUTY MICHAEL COUGHLIN VOTED TO WRITE TO THE PRESIDENT
EXPLAINING WHY THE APPEAL REMAINS CRUCIAL AND TO ASK HIM TO ALLOW THE POSTAL
SERVICE'S CASE TO CONTINUE WITHOUT AUTHORITY TO APPEAL THEY WROTE THE
OPERATION OF THE POSTAL SERVICE WOULD BE SERIOUSLY AFFECTED

THE MAJORITY'S RESPONSE PROMPTED THE FOUR DISSENTING GOVERNORS TO COMPOSE
THEIR OWN LETTER TO THE PRESIDENT DESCRIBING THE ACTIONS AT THE CLOSED
BOARD MEETING AND ADDING THAT THEY WANTED TO GO ALONG WITH HIS ORDER
9301060101 930106 TANKER AGROUND OFF SHETLAND ISLANDS POSES THREAT OF
AN OIL SPILL DISASTER  BY KEN WELLS STAFF REPORTER OF THE WALL
STREET JOURNAL

LONDON A DISABLED OIL TANKER WASHED AGROUND ON THE ROCKY COAST OF THE
SHETLAND ISLANDS YESTERDAY RAISING THE SPECTER OF AN OIL SPILL MORE THAN
TWICE THE SIZE OF THE 1989 EXXON VALDEZ DISASTER

THE TANKER WAS CARRYING OIL OWNED BY ULTRAMAR CORP TARRYTOWN NY WHICH
SAID THE OIL WAS HEADED FOR ITS ST ROMUALD REFINERY IN CANADA THE SHIP WAS
EN ROUTE FROM MONGSTAD NORWAY

EARLY RECONNAISSANCE INDICATED THE SHIP HAD SPRUNG LEAKS IN ITS FORWARD AND
AFT OIL TANKS AND WAS BEING POUNDED BY 25FOOT SWELLS IN A REMOTE ISLAND
COVE ABOUT 150 MILES OFF THE NORTHEAST SCOTLAND COAST BUT THE EXTENT OF THE
DAMAGE ISN'T LIKELY TO BE KNOWN UNTIL TODAY BECAUSE FOG HEAVY SEAS AND
GALEFORCE WINDS BLOCKED OILRECOVERY EFFORTS

BUT GIVEN SEA CONDITIONS ALL OF THE SHIP'S 25 MILLION GALLONS OF NORWEGIAN
LIGHT CRUDE WILL LIKELY BE SPILLED A SPOKESMAN FOR BRITAIN'S DEPARTMENT
OF TRANSPORTATION SAID THE COAST GUARD FEARED THE VESSEL WOULD BREAK UP
OVERNIGHT IF THAT OCCURS THE DISASTER WOULD RANK IN THE TOP 10 TANKER
SPILLS OF ALL TIME

THE SHETLANDS FORM A REMOTE STORMTOSSED BUT RICH MARINE ESTUARY TEEMING
WITH FISH MARINE MAMMALS AND BIRD LIFE ALREADY THERE WERE REPORTS OF BADLY
OILED SEALS ON SOME SHETLAND BEACHES AND RESIDENT COLONIES OF PUFFINS AND
DUCKS WERE ALSO AT RISK

BUT ENVIRONMENTALISTS SAID THE SPILL'S TIMING COULD HAVE BEEN WORSE MOST OF
THE ISLANDS' MIGRATORY SEA BIRDS ARE WINTERING ELSEWHERE SPILL EXPERTS ALSO
SAID THE CRUDE'S LIGHT NATURE WHICH ALLOWS IT TO EVAPORATE QUICKLY
COMBINED WITH ROUGH SEAS SHOULD HELP DISSIPATE THE OIL

THE ACCIDENT OCCURRED AFTER THE LIBERIANREGISTERED BRAER TANKER LOST POWER
YESTERDAY MORNING AS IT NAVIGATED A 22MILE CHANNEL BETWEEN FAIR ISLE AND
SHETLAND ISLAND AIRBORNE AND SHIPBORNE RESCUERS MANAGED TO PLUCK THE
SHIP'S 34PERSON CREW TO SAFETY

BUT THEY FAILED IN A LASTDITCH EFFORT TO CONNECT TOW LINES FROM THE TANKER
TO TUGBOATS THAT HAD FOUGHT THROUGH HIGH SEAS IN AN EFFORT TO KEEP THE
FLOUNDERING BRAER OFF THE ROCKS WHAT CAUSED THE TANKER TO LOSE POWER WASN'T
IMMEDIATELY CLEAR THOUGH THE SHIP'S RADIO OPERATOR TOLD BBC RADIO THAT SEA
WATER SEEPING INTO FUEL LINES HAD FOULED THE ENGINES

ULTRAMAR SAID THE TANKER IS OWNED AND OPERATED BY BRAER CORP A BERMUDA
SUBSIDIARY OF BERGVAL & HUDNER SHIP MANAGEMENT CO STAMFORD CONN AND
THAT THAT B&H HAS PRIMARY RESPONSIBILITY FOR ACCIDENT AND POLLUTION LOSS
AND DAMAGE

ULTRAMAR VALUED THE CARGO AT 11 MILLION AND SAID IT HAD SUFFICIENT
INSURANCE TO COVER THE POTENTIAL CARGO LOSS THE COMPANY WHICH USED TO BE A
PART OF ULTRAMAR PLC OF BRITAIN WENT PUBLIC IN JUNE ULTRAMAR PLC ITSELF
WAS TAKEN OVER BY ANOTHER BRITISH OIL COMPANY LASMO PLC LAST YEAR

BRITAIN'S DEPARTMENT OF TRANSPORT WHICH COORDINATES OILSPILL CLEANUP
EFFORTS SAID IT HAD MOVED SPILL CONTAINMENT EQUIPMENT ALONG WITH SIX
AIRCRAFT LADEN WITH CHEMICAL DISPERSANTS INTO NORTHERN SCOTLAND IN HOPES OF
ATTACKING SPILLED OIL AT THE FIRST BREAK IN THE WEATHER BUT WITH
FORECASTERS PREDICTING CONTINUED GALE WINDS AND ROUGH SEAS NOTHING IS
CERTAIN A DEPARTMENT SPOKESMAN ADDED

DISPERSANTS ARE CHEMICALS ESSENTIALLY DETERGENTS THAT CAN KEEP OIL
FROM GETTING ASHORE BY BREAKING CRUDE DOWN INTO DROPLETS THAT SINK AND
DISPERSE INTO THE WATER COLUMN THEY ARE WIDELY USED IN BRITAIN AND EUROPE
BUT ARE USED ONLY SPARINGLY IN THE US BECAUSE OF POSSIBLE ADVERSE
ENVIRONMENTAL EFFECTS

B&H THE TANKER'S MANAGEMENT COMPANY ALSO SENT AN EMERGENCY RESPONSE TEAM
TO THE AREA WE REGRET THAT THIS INCIDENT OCCURRED THE COMPANY'S CHIEF
EXECUTIVE MICHAEL HUDNER SAID HOWEVER WE ARE WORKING TO MINIMIZE THE
DANGER OF POLLUTION AND WE ARE COOPERATING FULLY WITH THE BRITISH
AUTHORITIES

THE SPILL IS EUROPE'S SECOND SINCE LAST MONTH THE GREEK TANKER AEGEAN SEA
RAN AGROUND AS IT TRIED TO ENTER THE SPANISH ATLANTIC PORT OF LA CORUNA DEC
3 IT SPILLED NEARLY ALL OF THE 21 MILLION GALLONS OF CRUDE OIL IT WAS
CARRYING WHILE MUCH OF THAT SPILL DISSIPATED ON ITS OWN OFFICIALS THERE
ESTIMATE LOSSES TO THE FISHING INDUSTRY AT 50 MILLION

BRITAIN'S WORST SPILL EVER CAME WHEN THE TORREY CANYON RAN AGROUND OFF
LAND'S END IN 1967 UNLEASHING 31 MILLION GALLONS OF CRUDE OIL EXXON
CORP'S 11 MILLION GALLON VALDEZ SPILL IS THE LARGEST US SPILL TO DATE IT
REQUIRED A THREEYEAR CLEANUP EFFORT COSTING MORE THAN 2 BILLION

BHUSHAN BAHREE IN GENEVA CONTRIBUTED TO THIS ARTICLE 9301060100 930106
WHO'S NEWS MCA PICKS BENSION AS STEIN'S SUCCESSOR IN TOP POSTS AT
UNIT

UNIVERSAL CITY CALIF MCA INC NAMED RON BENSION CHAIRMAN AND CHIEF
EXECUTIVE OFFICER OF MCA RECREATION SERVICES GROUP AND A VICE PRESIDENT OF
THE PARENT COMPANY

MR BENSION FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE UNIT
SUCCEEDS JAY S STEIN A VETERAN MCA EXECUTIVE WHO RESIGNED TO BECOME A
CONSULTANT TO MCA A UNIT OF JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO

THIS SHIFT  WILL ENABLE ME TO CONTRIBUTE TO MAJOR CREATIVE DECISIONS
AS WELL AS LONGTERM STRATEGIC PLANNING WHILE AT THE SAME TIME ALLOWING ME
MORE TIME WITH MY FAMILY AS WELL AS OTHER PERSONAL AND CHARITABLE
PURSUITS MR STEIN SAID IN A STATEMENT

MR BENSION 38 YEARS OLD BEGAN HIS CAREER AT MCA'S UNIVERSAL STUDIOS
HOLLYWOOD ATTRACTION IN 1971 HE ROSE THROUGH THE RANKS TO THE POST OF
PRESIDENT AND CHIEF OPERATING OFFICER OF THE FACILITY IN 1988 AND WAS NAMED
TO HIS MOST RECENT POST IN 1990

MR STEIN 55 JOINED MCA IN 1959 AND HAS HELD A NUMBER OF EXECUTIVE POSTS
WITHIN VARIOUS COMPANY DEPARTMENTS UNDER HIS LEADERSHIP ATTENDANCE HAS
CLIMBED SHARPLY AT MCA'S THEME PARKS IN HOLLYWOOD AND IN FLORIDA
9301060099 930106 FINANCING BUSINESS BANK OF NOVA SCOTIA

BANK OF NOVA SCOTIA SAID IT PLANS TO ISSUE 300 MILLION CANADIAN DOLLARS
US2344 MILLION OF 715 NONCUMULATIVE PREFERRED SHARES TO ADD TO THE
BANK'S TIER 1 CAPITAL BASE THE SHARES TO BE ISSUED AT C25 EACH ARE
CALLABLE FOR CASH OR COMMON SHARES AFTER 9 3/4 YEARS SUBJECT TO REGULATORY
APPROVAL THEY ALSO ARE CONVERTIBLE AT THE OPTION OF THE HOLDER INTO COMMON
SHARES AFTER 10 1/4 YEARS LEAD UNDERWRITER TO THE ISSUE IS SCOTIAMCLEOD
INC OF TORONTO BANK OF NOVA SCOTIA ALSO SAID IT PLANS TO REDEEM ALL ITS
OUTSTANDING 95 DEBENTURES DUE SEPT 15 1997 CURRENTLY C348 MILLION OF
THE ISSUE REMAINS OUTSTANDING IT SAID THE DEBENTURES WILL BE REDEEMED AT
1015 OF THEIR PRINCIPAL AMOUNT ON MARCH 15 1993 THE BANK SAID
9301060098 930106 WHO'S NEWS SMITH BARNEY NAMES GUBA TO HEAD GROUP

NEW YORK SMITH BARNEY HARRIS UPHAM & CO NAMED THOMAS GUBA FORMER HEAD
OF ONE OF MABON SECURITIES CORP'S TWO MAIN BUSINESSES MANAGER OF ITS
TAXABLE FIXEDINCOME SECURITIES TRADING AND SALES GROUP

MR GUBA 42 YEARS OLD RESIGNED FROM MABON JAN 4 AND WILL ASSUME HIS NEW
ROLE AT PRIMERICA CORP'S SMITH BARNEY UNIT JAN 25 HE HAD BEEN MABON'S
MANAGING DIRECTOR OF GOVERNMENT AND MORTGAGEBACKED SECURITIES AND A MEMBER
OF THE FIRM'S EXECUTIVE COMMITTEE AND BOARD OF DIRECTORS MABON SAID ROBERT
KAUTZMAN 35 MOST RECENTLY SALES MANAGER FOR MORTGAGEBACKED AND GOVERNMENT
SECURITIES WILL SUCCEED MR GUBA

AT SMITH BARNEY MR GUBA WILL HAVE RESPONSIBILITY FOR THE GOVERNMENT
MORTGAGEBACKED CORPORATE AND HIGHYIELD DEPARTMENTS REPORTING TO STEVEN
BLACK SENIOR EXECUTIVE VICE PRESIDENT IN CHARGE OF THE CAPITAL MARKETS
DIVISION

MR GUBA WAS ALSO NAMED AN EXECUTIVE VICE PRESIDENT AND A DIRECTOR AT SMITH
BARNEY INCREASING THE BOARD'S SIZE TO 36 MEMBERS IN HIS NEWLY CREATED
POSITION HE WILL BE RESPONSIBLE FOR ABOUT 300 EMPLOYEES WHO PREVIOUSLY
REPORTED DIRECTLY TO MR BLACK 9301060097 930106 INTERNATIONAL BRIEF 
AUTOMOBILES PEUGEOT SA FIRM WILL CUT 2597 JOBS LIKELY DROP IN SALES
CITED

AUTOMOBILES PEUGEOT SA DISCLOSED PLANS TO CUT 2597 JOBS AT FOUR CAR PLANTS
IN 1993

A SPOKESMAN FOR THE COMPANY ONE OF THE TWO CARMAKING DIVISIONS OF THE PSA
PEUGEOT CITROEN GROUP SAID THE JOB CUTS ARE DESIGNED TO ALLOW PEUGEOT TO
FACE AN EXPECTED 45 DECLINE IN EUROPEAN CAR SALES IN 1993 AND TO PURSUE
ITS ANNUAL OBJECTIVE OF A 12 GAIN IN PRODUCTIVITY

THE PLAN TO TRIM PEUGEOT'S WORK FORCE OF 55000 WILL BE PRESENTED TO A
MEETING OF MANAGEMENT AND LABOR REPRESENTATIVES NEXT WEDNESDAY THE PLAN
CALLS FOR 1636 WORKERS TO TAKE EARLY RETIREMENT AND FOR AN ADDITIONAL 961
TO BE LAID OFF 9301060095 930106 BUSINESS BRIEF PROPERTY TRUST OF
AMERICA FIRM WILL PAY 744 MILLION FOR 8 SOUTHWEST PROPERTIES

PROPERTY TRUST OF AMERICA SAID IT AGREED TO ACQUIRE EIGHT MIDDLE INCOME
MULTIFAMILY HOUSING COMPLEXES IN THE SOUTHWEST FOR 744 MILLION

THE REAL ESTATE INVESTMENT TRUST BASED IN EL PASO TEXAS SAID THE
PROPERTIES INCLUDE 2045 UNITS IN NEW MEXICO ARIZONA AND TEXAS PROPERTY
TRUST DECLINED TO DISCLOSE THE SELLERS

THE COMPANY ALSO SAID IT HAS A BALANCE OF 68 MILLION OF SHORTTERM
BORROWING UNDER ITS 72 MILLION REVOLVING CREDIT LINE AND IS NEGOTIATING
WITH ITS PRINCIPAL LENDER TO INCREASE THE AMOUNT TO 100 MILLION
9301060094 930106 WHAT'S NEWS  WORLDWIDE

THE EPA DECLARED THAT PASSIVE TOBACCO SMOKE IS A HUMAN LUNG CARCINOGEN

THE FINDING TO BE ISSUED TOMORROW IS LIKELY TO GENERATE DEMANDS FOR
DRASTIC NEW CURBS ON SMOKING IN WORKPLACES AND PUBLIC AREAS THE AGENCY ALSO
FOUND THAT FOR CHILDREN EXPOSURE TO PASSIVE SMOKE INCREASES THE RISK OF
BRONCHITIS AND PNEUMONIA ASTHMA AND PROBLEMS IN THE EAR AND LUNGS THE
REPORT WILL HAVE PROFOUND REVERBERATIONS IN THE COUNTRY ACCORDING TO EPA
CHIEF REILLY

REILLY LAST MONTH SAID THAT A DECISION TO DECLARE PASSIVE SMOKE AN
ENVIRONMENTAL HEALTH RISK COULD SUBSTANTIALLY INCREASE THE LEGAL LIABILITY
OF BUSINESSES

CRUDE OIL GUSHED FROM A DISABLED TANKER THREATENING NORTH SEA WILDLIFE

THE SHIP SLAMMED ONTO THE STORMBATTERED SHETLAND ISLANDS OFF NORTHEAST
SCOTLAND RAISING THE SPECTER OF AN OIL SPILL MORE THAN TWICE THE SIZE OF
THE 1989 EXXON VALDEZ DISASTER THE TANKER WHICH CARRIED 25 MILLION GALLONS
OF OIL OWNED BY ULTRAMAR CORP WAS EN ROUTE TO CANADA FROM NORWAY A MAJOR
OIL SPILL COULD ENDANGER THE MANY FISH BIRDS AND MARINE MAMMALS IN THE
AREA

ONE BRITISH OFFICIAL PREDICTED THAT ALL OF THE SHIP'S LIGHT CRUDE WOULD BE
SPILLED AND THERE WERE FEARS THAT THE TANKER WOULD BREAK UP OVERNIGHT

A FEDERAL JURY FOUND A ONETIME TOP AIDE TO EXHUD SECRETARY PIERCE AND TWO
OTHER MEN GUILTY OF OFFERING GRATUITIES TO OFFICIALS AT THE AGENCY BUT THE
THREE WERE ACQUITTED OF MORE SERIOUS BRIBERY MAIL FRAUD AND CONSPIRACY
CHARGES THE TRIAL IS THE FIRST TO COME OUT OF THE HUD INFLUENCEPEDDLING
SCANDAL

MOST POSTAL SERVICE BOARD MEMBERS FACE DISMISSAL BY BUSH BECAUSE SEVEN OF
THE 11 MEMBERS DECIDED TO CONTINUE THEIR APPEAL OF A 1991 RATE INCREASE THE
RATE RISE APPROVED BY THE POSTAL RATE COMMISSION LIFTED THE COST OF A
FIRSTCLASS STAMP TO 29 CENTS FROM 25 THE INCREASE WAS A CENT LESS THAN THE
BOARD SOUGHT

THE FDA LAUNCHED A PROCESS TO REQUIRE MAKERS OF SALINE BREAST IMPLANTS TO
SHOW THAT THE DEVICES ARE SAFE AND EFFECTIVE THE AGENCY'S ACTION FOLLOWS
SIMILAR MOVES TAKEN FOR SILICONEGEL IMPLANTS IN THE WAKE OF A CONTROVERSY
THAT ERUPTED OVER THE SAFETY OF THOSE DEVICES

THE BUSH ADMINISTRATION ANNOUNCED PLANS TO SELL 45 BILLION IN BATTLE TANKS
AND OTHER MILITARY EQUIPMENT TO KUWAIT AS PART OF AN EFFORT TO HELP SOME
ARAB NATIONS MOST OF THE MONEY WOULD BE FOR 256 OF THE TANKS MADE BY
GENERAL DYNAMICS

THE US EXPRESSED CONCERN OVER IRAQ'S DEPLOYMENT OF ANTIAIRCRAFT MISSILES
IN THE SOUTHERN NOFLY ZONE AND WHITE HOUSE SPOKESMAN FITZWATER SAID
WASHINGTON WAS CONSIDERING HOW TO RESPOND THE PENTAGON SAID IRAQ HAS MOVED
SURFACETOAIR MISSILES INTO POSITIONS ALONG THE 32ND PARALLEL WHICH
BORDERS THE NOFLY ZONE

RUSSIA'S NEW PRIME MINISTER HAS SIGNED A DECREE THAT EXPANDS GOVERNMENT
PRICE CONTROLS ON A RANGE OF BASIC GOODS IT WASN'T CLEAR TO WHAT EXTENT
CHERNOMYRDIN'S DECREE WOULD SET BACK THE FREE MARKET REFORMS THAT WERE
INITIATED BY HIS PREDECESSOR GAIDAR

SHOUTING DISRUPTED A MEETING OF SOMALIA'S WARRING FACTIONS BUT THE 14 CLAN
LEADERS AGREED TO EXTEND THE UNSPONSORED TALKS IN ETHIOPIA'S CAPITAL FOR
ANOTHER DAY THE SOMALI LEADERS HAVE SO FAR FAILED TO APPROVE GROUND RULES
FOR A PROPOSED NATIONAL RECONCILIATION CONFERENCE

INTERNATIONAL MEDIATORS HEADED TO BELGRADE TO SEEK SERB GOVERNMENT SUPPORT
FOR A BOSNIAN PEACE PLAN THAT WOULD DENY BOSNIAN SERBS A STATE OF THEIR OWN
MEDIATORS CYRUS VANCE AND LORD OWEN PLAN TO MEET TODAY WITH SERB PRESIDENT
MILOSEVIC

A BOAT CARRYING 352 HAITIANS ARRIVED IN MIAMI WHILE OTHER HAITIANS HELD FOR
MONTHS BY IMMIGRATION OFFICIALS ENTERED THE SIXTH DAY OF A HUNGER STRIKE TO
PROTEST BEING TREATED MORE HARSHLY THAN CUBAN IMMIGRANTS DEMOCRATIC
SOURCES MEANWHILE SAID CLINTON IS PREPARING TO VOICE HIS OPPOSITION TO
MASS MIGRATION FROM HAITI

PALEONTOLOGISTS SAID THEY WERE CLOSER TO IDENTIFYING THE COMMON ANCESTOR OF
ALL DINOSAURS WITH THE DISCOVERY IN ARGENTINA OF A FOSSIL FROM A DOGSIZED
CARNIVORE THE TWOLEGGED DINOSAUR THE MOST PRIMITIVE EVER DISCOVERED IS
DESCRIBED IN TOMORROW'S ISSUE OF THE BRITISH JOURNAL NATURE 9301060093
930106 LETTERS TO THE EDITOR WE ARE NOT IN ACCORD WITH HONDA BIAS

CONSIDERING THAT CHRYSLER'S NEW DODGE INTREPID CHRYSLER CONCORDE AND EAGLE
VISION SEDANS HAVE BEEN GIVEN AUTOMOBILE MAGAZINE'S AUTOMOBILE OF THE YEAR
AWARD AFTER HAVING BESTED A STELLAR FIELD OF OTHER NEW CARS LIKE MERCEDES
MAZDA FORD AND NISSAN I WAS DISTRESSED TO READ TIM FERGUSON'S NOV 24
BUSINESS WORLD COLUMN NO BLEACHER SEATS FOR IACOCCA'S HOME RUN' THE
PIECE COMBINED INCORRECT BELIEFS WITH A FUNDAMENTAL LACK OF UNDERSTANDING OF
THE VEHICLE MARKETPLACE

 CHRYSLER HAS NEVER SAID NOR HAVE I SEEN ANY EDITORIAL FEATURES BY THE
AUTOMOTIVE PRESS STATING THAT CHRYSLER WILL TAKE BACK MAIN STREET FROM THE
LIKES OF THE HONDA ACCORD THE ACCORD IS A GREAT CAR SCORING A DIRECT HIT
AT A SPECIFIC SEGMENT OF THE FAMILY SEDAN MARKET WE HAVE SIMILAR HOPES FOR
OUR NEW CONCORDE INTREPID AND VISION BUT THEY ARE AIMED AT A DIFFERENT
SEGMENT ONE THAT DEMANDS MORE ROOM PERFORMANCE COMFORT CONVENIENCE AND
SAFETY FEATURES THAN ACCORD AND ITS DIRECT COMPETITORS PROVIDE IT WOULDN'T
HAVE TAKEN MR FERGUSON MUCH RESEARCH TO LEARN THAT CHRYSLER WILL BE
BUILDING A DIRECT ACCORDSIZED COMPETITOR IN THE NEXT TWO YEARS

 MR FERGUSON STATES THAT TO SELL 225000 FAMILYSIZE VEHICLES WE HAVE TO
GO WHERE THE PEOPLE ARE THAT'S PRECISELY WHAT WE'RE DOING THE SEGMENT AT
WHICH OUR NEW VEHICLES ARE AIMED ACCOUNTS FOR MORE THAN TWO MILLION NEW
VEHICLE SALES EACH YEAR IN FACT IT'S THE LARGEST SINGLE SEGMENT OF THE CAR
MARKET

 MR FERGUSON NEEDS AN EDUCATION IN THE OLD BUT PROVEN SCIENCE OF
COMPARING APPLES TO APPLES TO GET A TRULY ACCURATE APPRECIATION OF REAL
VALUE IN COMPARING CARS YOU HAVE TO COMPARE THEM EQUALLY EQUIPPED 
FEATURE TO FEATURE ENGINE TO ENGINE SIZE TO SIZE OPTION TO OPTION AND
WHEN YOU DO YOU WILL SEE OUR NEW SEDANS OFFER SUPERB VALUE TO ANY OF THEIR
TRUE COMPETITION BY VIRTUE OF PROVIDING MORE SIZE MORE STANDARD COMFORT
AND CONVENIENCE FEATURES AND MORE SAFETY BY VIRTUE OF STANDARD DUAL AIR
BAGS AND AVAILABLE ANTILOCK BRAKES TRACTION CONTROL AND INTEGRATED CHILD
SEATS

 I DON'T KNOW WHERE MR FERGUSON ACQUIRED HIS DEFINITION OF CABFORWARD
DESIGN BUT IT SURE DIDN'T COME FROM CHRYSLER TO US THE CABFORWARD
ARCHITECTURE HAS ONE SIMPLE DEFINITION WE DEDICATE MORE OF THE OVERALL MASS
OF THE CAR TO THE INTERIOR THIS PROVIDES MORE ROOM FOR PASSENGERS AND
CARGO OUR DIMENSIONS PROVE IT MORE THAN 75 OF THE OVERALL SPACE IS
DEDICATED TO THE INTERIOR COMPARED TO 6065 IN A TRADITIONAL SEDAN

 THE INTREPID SEEMS TO HAVE MIMICKED THE ACCORD'S ERGONOMICS MR
FERGUSON STATES GIMME A BREAK YES THE ACCORD'S ERGONOMICS ARE DARN GOOD
BUT WHERE ARE THEIR LIGHTED DOOR WINDOW AND REAR VIEW MIRROR CONTROLS
DUAL AIR BAGS WITH A FULLSIZE GLOVE BOX POWER SEAT CONTROLS THAT MIRROR
THE EXACT MOVEMENT OF THE SEAT DOUBLE ELEMENT SUN VISORS TO SHIELD THE EYES
FRONT AND SIDE AT THE SAME TIME BESTINCLASS DOOR ENTRY AND EXIT
BESTINCLASS REAR SEAT LEG AND HEAD ROOM INTEGRATED CHILD SEAT
UNOBSTRUCTED ALLAROUND VISION POPOUT CUPHOLDERS SEATBACK MAP POCKETS
LUGGAGE COMPARTMENT NET AND FRONT DOOR COURTESY LAMPS

 MR FERGUSON MIGHT PREFER TO SHIFT BUT AGAIN HAD HE TAKEN THE TIME HE
COULD HAVE FOUND THAT HE'S IN A MINORITY A FULL 93 OF FAMILY SEDANS ARE
SOLD WITH AUTOMATIC TRANSMISSIONS

THERE'S MORE BUT WHAT'S THE USE IT DOES NOT TAKE A GREAT SLEUTH TO
RECOGNIZE THE OBVIOUS HONDA BIAS IN MR FERGUSON'S ARTICLE BUT IT IS
DIFFICULT TO UNDERSTAND THE HARD NEGATIVE EDGE TO HIS REVIEW THE GOOD NEWS
IS THAT MR FERGUSON IS 100 OUT OF SYNC WITH THE RECOGNIZED EXPERTS WHO
HAVE TESTED THE CAR TO RAVE REVIEWS AND THE CUSTOMERS WHO HAVE KEPT US IN A
SOLDOUT CONDITION SINCE ITS INTRODUCTION

HE MAY BE BUCKING AN EMERGING TREND ALSO WE UNDERSTAND THERE WILL BE
ANOTHER NEW CAR INTRODUCED NEXT YEAR THAT WILL BE LARGER THAN THE CURRENT
GENERATION MODEL WILL WEIGH MORE WILL COST MORE AND WILL BE EQUIPPED WITH
THE V6 MR FERGUSON WOULD PROBABLY LIKE IT BECAUSE ITS NAME WILL BE HONDA
ACCORD 9301060092 930106 RULE OF LAW IF WE HAVE TO HAVE AN INDEPENDENT
 COUNSEL LAW INCLUDE CONGRESS  BY THEODORE J BOUTROUS JR

ONE OF THE FIRST ITEMS ON THE AGENDA OF THE NEW CONGRESS IS THE INDEPENDENT
COUNSEL STATUTE WHICH EXPIRED ON DEC 15 PRESIDENTELECT CLINTON FAVORS
REENACTMENT AND THE DEMOCRATIC CONGRESS IS LIKELY TO GO ALONG I'M NO
SUPPORTER OF THE INDEPENDENT COUNSEL LAW IN ANY SHAPE OR FORM BUT IF WE
HAVE TO HAVE ONE IT SHOULD APPLY NOT JUST TO THE EXECUTIVE BRANCH BUT ALSO
TO CONGRESS AS IT HAS DONE WITH SO MANY LAWS CONGRESS EXEMPTED ITSELF FROM
THE ORIGINAL INDEPENDENT COUNSEL STATUTE WHICH WAS LIMITED TO HIGHRANKING
MEMBERS OF THE EXECUTIVE BRANCH

IN HIS CHRISTMAS EVE PARDON OF FORMER SECRETARY OF DEFENSE CASPAR WEINBERGER
AND OTHERS PRESIDENT BUSH NOTED THAT THE REPEATED INVOCATION OF THE
INDEPENDENT COUNSEL STATUTE HAS LED TO A PROFOUNDLY TROUBLING DEVELOPMENT
IN THE POLITICAL AND LEGAL CLIMATE OF OUR COUNTRY THE CRIMINALIZATION OF
POLICY DIFFERENCES BUT THERE IS AN EVEN MORE PERNICIOUS FEATURE OF THE
INDEPENDENT COUNSEL LAW THE POLITICIZATION OF CRIMINAL PROSECUTIONS

WHENEVER CRIMINAL PROSECUTIONS FOCUS ON HIGHPROFILE GOVERNMENT FIGURES
POLITICS CAN COME INTO PLAY NO MATTER WHAT BRANCH OF GOVERNMENT THE
OFFICIALS OCCUPY INDEED THE JUSTICE DEPARTMENT MIGHT WELL BE RELUCTANT TO
PROSECUTE OR EVEN INVESTIGATE CRIMINAL CHARGES AGAINST MEMBERS OF CONGRESS
BECAUSE OF PARTISAN LOYALTY TO MEMBERS OF THE PRESIDENT'S POLITICAL PARTY OR
FEAR OF RETRIBUTION FROM CONGRESS IN THE FORM OF OVERSIGHT INVESTIGATIONS

ONE NEED NOT LOOK FAR FOR AN EXAMPLE OF HOW POLITICS MIGHT AFFECT CRIMINAL
PROSECUTIONS IT HAS BEEN REPORTED THAT FEDERAL PROSECUTORS ARE RACING TO
INDICT REP DAN ROSTENKOWSKI D ILL BEFORE INAUGURATION DAY IN
CONNECTION WITH THE HOUSE BANK SCANDAL ACCORDING TO THE DEC 28 NEWSWEEK
US ATTORNEY JAY STEPHENS A BUSH APPOINTEE WORRIES THAT IF CHARGES
AREN'T BROUGHT  BEFORE JAN 20 THE CLINTON ADMINISTRATION WON'T
VIGOROUSLY PURSUE THE CASE AGAINST THE PROMINENT DEMOCRAT

THAT MAY OR MAY NOT BE TRUE BUT IT'S A LEGITIMATE POINT ON ONE HAND A
RUSH BY THE DEPARTING PRESIDENT TO OBTAIN A PREINAUGURAL INDICTMENT MIGHT
RESULT IN AN UNFAIR OR PREMATURE PROSECUTION ON THE OTHER HAND THE NEW
PRESIDENT'S DESIRE TO END THE GRIDLOCK WITH CONGRESS MIGHT CONFLICT WITH AN
INDICTMENT OF THE CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE CERTAIN
TO BE A VITAL PLAYER IN PUSHING MR CLINTON'S ECONOMIC AGENDA IN THE HOUSE

THE AVAILABILITY OF AN INDEPENDENT COUNSEL TO INVESTIGATE THE ROSTENKOWSKI
MATTER WOULD SEEM THE PERFECT SOLUTION FOR ALL OF THE REASONS GENERALLY
OFFERED TO SUPPORT INDEPENDENT COUNSEL INVESTIGATIONS OF THE PRESIDENT AND
HIS APPOINTEES IT WOULD AVOID ANY POTENTIAL INJUSTICE RESULTING FROM A
RUSHED INDICTMENT AND ENSURE THAT MR ROSTENKOWSKI IS NOT GIVEN SPECIAL
TREATMENT SIMPLY BECAUSE HE IS A POWERFUL FIGURE IN CONGRESS AND A MEMBER OF
THE PRESIDENT'S POLITICAL PARTY

MORE GENERALLY APPLYING THE INDEPENDENT COUNSEL STATUTE TO BOTH THE
LEGISLATIVE AND EXECUTIVE BRANCHES WOULD SERVE AS A VALUABLE CHECK AGAINST
MISUSES OF INDEPENDENT COUNSELS IT WOULD TEMPER CONGRESS'S INEVITABLE URGE
TO DEMAND A NEW PROSECUTOR AT THE FIRST SIGN OF INTERBRANCH CONFLICT OR
POLITICAL VULNERABILITY WITH THE CERTAIN KNOWLEDGE THAT THE SHOE MIGHT
SOMEDAY BE ON THE OTHER FOOT

MEMBERS OF CONGRESS GENERALLY OPPOSE GIVING THE EXECUTIVE BRANCH ENFORCEMENT
AUTHORITY OVER CONGRESS ARGUING THAT THE SEPARATION OF POWERS PRECLUDES IT
CONGRESS HAS USED THIS ARGUMENT TO EXEMPT ITSELF FROM MANY LAWS INCLUDING
THOSE ON SEX AND RACE DISCRIMINATION THESE SAME LEGISLATORS HOWEVER DON'T
SEEM TO WORRY ABOUT SEPARATION OF POWERS WHEN DISCUSSING THE INDEPENDENT
COUNSEL STATUTE THEY ARGUE THAT THE STATUTE IS NECESSARY BECAUSE THE
ATTORNEY GENERAL WHO SERVES AT THE PLEASURE OF THE PRESIDENT HAS AN
INHERENT CONFLICT OF INTEREST IF REQUIRED TO PROSECUTE THE PRESIDENT AND HIS
OTHER TOP ADVISERS BUT BECAUSE NO SIMILAR CONFLICT EXISTS WITH RESPECT TO
MEMBERS OF CONGRESS THE ARGUMENT GOES THE JUSTICE DEPARTMENT CAN CONDUCT
CRIMINAL INQUIRIES OF CONGRESS AND THERE IS NO NEED TO INVOKE THE
INDEPENDENT COUNSEL PROCEDURE

THIS ARGUMENT IS TO SAY THE LEAST DISINGENUOUS IF TRUE CONGRESS LIKEWISE
COULD DEPEND ON THE EXECUTIVE AND JUDICIAL BRANCHES TO ENFORCE AND APPLY
OTHER LAWS WITHOUT REGARD TO POLITICS ELIMINATING THE NEED FOR CONGRESS TO
EXEMPT ITSELF FROM MOST OF THE LAWS IT PASSES MOREOVER MEMBERS OF CONGRESS
TYPICALLY RELY UPON THE SEPARATIONOFPOWERS DOCTRINE WHENEVER THE ATTORNEY
GENERAL ACTUALLY INVESTIGATES AND PROSECUTES THEM

NOR IS CONGRESS ITSELF WITHOUT CONFLICTOFINTEREST PROBLEMS WHEN IT COMES
TO ENSURING THAT ITS MEMBERS CONFORM TO LEGAL AND ETHICAL STANDARDS JUST
LOOK AT THE SENATE ETHICS COMMITTEE WHICH ACCORDING TO A PAGE ONE STORY IN
THE WASHINGTON POST SUNDAY HAS BECOME THE OBJECT OF RIDICULE SCORN RAGE
AND INSULTING JOKES FORMER COMMITTEE CHAIRMAN SEN HOWELL T HEFLIN D
ALA WAS QUOTED AS SAYING THAT THERE ARE JUST TOO MANY INHERENT PROBLEMS
WITH SENATORS JUDGING SENATORS BECAUSE IF YOU CENSURE SOMEONE  THE
NEXT DAY YOU'RE SEEKING THEIR VOTE

SHOULD CONGRESS AGAIN EXEMPT ITSELF FROM THE INDEPENDENT COUNSEL STATUTE IT
WOULD BE AN IMPLICIT ADMISSION THAT ITS MOTIVES ARE PARTISAN AND
SELFINTERESTED IT WOULD BE HARD PROOF THAT CONGRESS RECOGNIZES THE DANGERS
OF THE BROAD AND UNFETTERED POWER OF THE INDEPENDENT COUNSEL OFFICE IT HAS
CREATED AND FEARS THE CONSEQUENCES OF UNLEASHING THAT POWER AGAINST ITSELF
IT WILL REINFORCE THE VIEW THAT THE INDEPENDENT COUNSEL LAW IS AN ABUSIVE
AND IMPROPER CONGRESSIONAL TOOL FOR TORMENTING MEMBERS OF THE EXECUTIVE
BRANCH WITH WHOM CONGRESS DISAGREES

IN HIS OPINION DISSENTING FROM THE SUPREME COURT'S 1988 DECISION UPHOLDING
THE CONSTITUTIONALITY OF THE INDEPENDENT COUNSEL STATUTE JUSTICE ANTONIN
SCALIA WROTE IT IS DIFFICULT TO VOTE NOT TO ENACT AND EVEN MORE DIFFICULT
TO VOTE TO REPEAL A STATUTE CALLED  THE ETHICS IN GOVERNMENT ACT IF
CONGRESS IS CONTROLLED BY THE PARTY OTHER THAN THE ONE TO WHICH THE
PRESIDENT BELONGS IT HAS LITTLE INCENTIVE TO REPEAL IT IF IT IS CONTROLLED
BY THE SAME PARTY IT DARE NOT

THE DEMOCRATCONTROLLED CONGRESS FINDS ITSELF IN THE LATTER POSITION
DECIDING WHETHER TO PASS A LAW THAT WILL ALLOW INDEPENDENT COUNSELS TO
PURSUE FELLOW DEMOCRAT BILL CLINTON AND HIS DEMOCRATIC CABINET FOR THE NEXT
FOUR YEARS JUSTICE SCALIA MAY WELL BE CORRECT THAT UNDER SUCH CIRCUMSTANCES
CONGRESS DARE NOT VOTE DOWN THE INDEPENDENT COUNSEL STATUTE BUT IF CONGRESS
TRULY IS CONFIDENT IN THE NEED FOR AND FUNDAMENTAL FAIRNESS OF A NEW
INDEPENDENT COUNSEL LAW IT SHOULD APPLY THE LAW TO THE CONDUCT OF ITS OWN
MEMBERS

MR BOUTROUS IS AN ATTORNEY IN WASHINGTON WHO HAS REPRESENTED PARTIES IN
INDEPENDENT COUNSEL MATTERS 9301060091 930106 LIBRARIES OF KILLERS 
OFTEN INCLUDE A BOOK OR TWO FROM PALADIN  TELLING HOW TO BOOBYTRAP
 OR BOMB IS GOOD BUSINESS TO A SUCCESSFUL PUBLISHER  BY ERIK
LARSON STAFF REPORTER OF THE WALL STREET JOURNAL

BOULDER COLO PEDER LUND OWNER OF PALADIN PRESS A MAILORDER PUBLISHER
HERE IS DELIGHTED HE HAS JUST LEARNED THAT THE LIBRARY OF CONGRESS KEEPS
ONE OF HIS BOOKS IN ITS RAREBOOK COLLECTION FOR SECURITY REASONS I'VE
GOT TO WRITE THAT DOWN HE SAYS

THE BOOK ONE OF MANY PALADIN PUBLISHES ON EVERYTHING FROM MAKING BOMBS TO
BEING A SUCCESSFUL HIT MAN IS CALLED KILL WITHOUT JOY A 500PAGE HOWTO
GUIDE TO HOMICIDE IT EVEN OFFERS A FEW TIPS ON DECAPITATION

MR LUND 50 YEARS OLD IS UNABASHEDLY CANDID ABOUT HIS MOTIVES AND WARES
I PREFER TO MAKE DECISIONS ABOUT PUBLISHING BASED ON WHAT WE WANT TO
PUBLISH AND WHAT OUR CUSTOMERS WANT RATHER THAN ACCEDING TO ANY PARTICULAR
DESIRE FOR RESPECTABILITY HE SAYS HIS CHAIR TIPPED BACK A LOADED
357CALIBER MAGNUM REVOLVER RESTING AS ALWAYS ON THE RIGHTHAND SURFACE
OF HIS DESK WITH A GRAVELLY LAUGH HE ADDS WHY BOTHER IT'S NOT ON MY
AGENDA

AT A TIME WHEN AMERICA IS STRUGGLING WITH A RISING TIDE OF URBAN VIOLENCE
PALADIN PRESS ENTHUSIASTICALLY PEDDLES PRIMERS ON THE TECHNIQUES OF
VIOLENCE ITS BOOKS ARE WELLKNOWN TO POLICE AND FEDERAL AGENTS WHO HAVE
FOUND THEM IN THE LIBRARIES OF SERIAL KILLERS AND BOMBERS THE LL BEAN OF
MAYHEM PALADIN IS THE MOST VISIBLE COMPANY IN A LITTLEKNOWN BUT ROBUST
INDUSTRY OFTEN CALLED THE GUN AFTERMARKET WHICH INCLUDES SCORES OF SMALL
PUBLISHERS MANUFACTURERS AND GUNSHOW EXHIBITORS DEVOTED TO PEDDLING
MURDEROUS KNOWHOW OF ALL KINDS THAT SUCH AN INDUSTRY EXISTS AT ALL
DEMONSTRATES THE POWER OF THE FIRST AMENDMENT TO PROTECT EVEN ADVICE ON HOW
TO GARROTE STAB AND BURN

I'VE GOT TO GIVE YOU CREDIT ONE SATISFIED PALADIN CUSTOMER WROTE THE
COMPANY YOU OFFER CONTROVERSIAL OFTEN SHOCKING LITERATURE THAT IS
INVALUABLE TO ALL AMERICANS HE HAD ORDERED FIVE BOOKS ONE IMPROVISED
EXPLOSIVES TELLS HOW TO BUILD PACKAGE BOMBS AND BOOBYTRAP A DOOR IT'S A
PITY THE CUSTOMER WROTE THAT ALL MAILORDER COMPANIES DON'T FOLLOW YOUR
EXAMPLE

A WALLINGFORD PA PARENT WAS LESS DELIGHTED TAKE OUR SON'S NAME OFF YOUR
MAILING LIST IMMEDIATELY YOU SHOULD BE STOPPED FROM SENDING YOUR
PUBLICATION THROUGH THE MAIL TO MINORS

MR LUND AND A PARTNER ROBERT K BROWN FOUNDED PALADIN IN 1970 AFTER BOTH
HAD SERVED WITH THE ARMY'S SPECIAL FORCES IN VIETNAM MR BROWN LEFT
PALADIN IN 1974 TO START SOLDIER OF FORTUNE MAGAZINE AND REMAINS ITS
PUBLISHER THE TWO TOOK THE NAME PALADIN NOT DIRECTLY FROM THE CHARACTER ON
THE CLASSIC TV SHOW HAVE GUN WILL TRAVEL BUT FROM A CLASS OF MEDIEVAL
KNIGHTS WHO ROAMED THE COUNTRYSIDE CORRECTING INJUSTICE BUT PALADIN PRESS
HAD NO GREAT INTEREST IN RIGHTING WRONGS THE POINT MR LUND SAYS WAS
PURE PROFIT

HE WON'T DISCLOSE PALADIN'S CURRENT FISCAL RESULTS BUT THE COMPANY SEEMS TO
PROVIDE HIM A COMFORTABLE LIVING HE DRIVES A 45000 RANGE ROVER AND SPENDS
UP TO FIVE MONTHS A YEAR AT A COTTAGE PALADIN OWNS IN BRITAIN'S COTSWOLDS A
VETERAN OF THREE DIVORCES HE LIVES WITH A LONGTIME FEMALE FRIEND IN A
MOUNTAIN HOME COMPLETE WITH A ONESTORY INDOOR WATERFALL

HE HAS ENCOUNTERED BUSINESS OBSTACLES EXECUTIVES DON'T TYPICALLY FACE
PRINTERS HAVE REFUSED TO PRINT PALADIN'S BOOKS AN ANSWERING SERVICE REFUSED
TO TAKE ITS CALLS TWO DIFFERENT BANKS ASKED PALADIN TO TAKE ITS BUSINESS
ELSEWHERE MAGAZINES AND NEWSPAPERS INCLUDING THIS ONE HAVE DECLINED TO
ACCEPT ITS ADVERTISEMENTS

PEOPLE PALADIN'S CATALOG INCLUDES 21 TECHNIQUES OF SILENT KILLING HIT
MAN A TECHNICAL MANUAL FOR INDEPENDENT CONTRACTORS PURPORTEDLY WRITTEN BY
A PRACTICING PROFESSIONAL AND HOMEMADE C4 A GUIDE TO MAKING THE
POWERFUL EXPLOSIVE

SUCH BOOKS WHILE HAVING LITTLE INFLUENCE ON NORMAL INDIVIDUALS TEND TO
DRAW VULNERABLE SOCIALLY ISOLATED PEOPLE SAYS DR PARK DIETZ A FORENSIC
PSYCHIATRIST AND CONSULTANT FOR THE FEDERAL BUREAU OF INVESTIGATION HE
OFTEN ENCOUNTERS PATIENTS WHO HAVE READ PALADIN BOOKS INCLUDING TWO SERIAL
KILLERS RESPONSIBLE FOR 16 DEATHS AND FINDS THEY TEND TO INCORPORATE THE
WORLD VIEW OF THE BOOKS MY CONCERN IS NOT JUST THAT ONE CAN LEARN TO
BUILD A BETTER BOMB THIS WAY HE SAYS BUT ALSO THAT THROUGH SUFFICIENT
IMMERSION IN THIS SUBCULTURE ONE COMES TO FIND A GREATER NEED TO BUILD THE
BOMB

INDEED BOMB INVESTIGATORS SAY THEY ROUTINELY FIND PALADIN BOOKS IN THE
POSSESSION OF BOMBING SUSPECTS HUNDREDS OF TIMES SAYS A BOMB EXPERT WITH
THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS

BOMBSQUAD MEMBERS THEMSELVES ARE AMONG PALADIN'S MOST MOTIVATED CUSTOMERS
JOSEPH GRUBISIC COMMANDER OF THE CHICAGO POLICE BOMB SQUAD GOT ON THE
COMPANY'S MAILING LIST IN ORDER TO BE PREPARED FOR BOMBS MADE FROM PALADIN
RECIPES CHARLES STUMPH COMMANDER OF THE ORANGE COUNTY CALIF SHERIFF'S
BOMB SQUAD LOOKS THROUGH EVERY BOOK HIS SQUAD FINDS EVERY TIME I OPEN ONE
UP HE SAYS IT SCARES ME THE MAJORITY OF PEOPLE WHO BUY THESE BOOKS HAVE
NO IDEA AT ALL WHAT EXPLOSIVES WILL DO

THAT THE BOOKS MAY POSE THE GRAVEST DANGER TO THEIR OWN USERS IS KNOWN TO
THE MARKETERS MR LUND ACKNOWLEDGES THAT THE THE ANARCHIST'S COOKBOOK
PUBLISHED ELSEWHERE BUT OFFERED IN PALADIN'S CATALOG CONTAINS FLAWED
RECIPES FOR MAKING EXPLOSIVES BUT ADDS THERE ARE SO MANY COPIES OF THAT
BOOK EXTANT I DON'T SEE HOW NOT SELLING ANOTHER ONE IS GOING TO BE IN ANY
WAY REDEEMING

BILLY BLANN OWNER OF DESERT PUBLICATIONS EL DORADO ARK SAYS HIS
COMPANY'S THE POOR MAN'S JAMES BOND ALSO SOLD BY PALADIN IS DOWNRIGHT
DANGEROUS ANYBODY WHO FOOLS WITH THIS STUFF HE SAYS IN A PROFOUND
ARKANSAS TWANG HAS GOT TO BE A FOOL

STILL PALADIN CONTINUES SELLING SUCH BOOKS AS A HUMAN MR LUND SAYS I
FEEL VERY SORRY FOR ANYONE WHO'S PUT THROUGH ANY PHYSICAL SUFFERING AS A
PUBLISHER AND AS A PRAGMATIST I FEEL ABSOLUTELY NO RESPONSIBILITY FOR THE
MISUSE OF INFORMATION JUST IN CASE PALADIN INSERTS DISCLAIMERS IN MANY OF
ITS BOOKS WARNING THE WORK IS FOR ENTERTAINMENT OR INFORMATION PURPOSES
ONLY

SO FAR NO ONE HAS SUED PALADIN OVER ITS BOOKS AND I THINK IT WOULD BE A
TRAVESTY OF THE LEGAL SYSTEM TO DO SO DON'T YOU MR LUND SAYS DO YOU
SUE GENERAL MOTORS BECAUSE A KID RUNS OVER HIS SCHOOLMATE IN A STOLEN CAR
DO YOU SUE THE MANUFACTURER OF A HAMMER BECAUSE A CHILD PICKS IT UP AND
BASHES HIS LITTLE SISTER'S HEAD IN I CAN'T SEE ANY CLEARTHINKING PERSON
HOLDING SOMEONE RESPONSIBLE FOR CONVEYING INFORMATION

MR LUND POINTS OUT THAT NOT ALL HIS BOOKS INVOLVE VIOLENCE HE CITES BOOKS
ON MILITARY HISTORY AND HANDBOOKS FOR LAWENFORCEMENT OFFICERS HIS
CUSTOMERS AREN'T CROOKS HE SAYS THEY BUY HIS BOOKS AS A CATHARTIC A
MEANS OF HARMLESSLY WORKING OFF FRUSTRATIONS WITH BOSSES FORMER WIVES AND
INTRACTABLE INSTITUTIONS BY IMAGINING ACTS OF VIOLENCE AND REVENGE I THINK
THERE ARE MANY MANY WALTER MITTYS ON OUR MAILING LIST HE SAYS

AMERICA'S FREESPEECH GLADIATORS SAY THE LAW CAN'T AND SHOULDN'T HALT
PALADIN'S PROSE WHAT'S THE DIFFERENCE ASKS ROBERT PECK OF THE AMERICAN
CIVIL LIBERTIES UNION BETWEEN A PALADIN HANDBOOK AND A TECHNOTHRILLER THAT
GOES INTO EXPLICIT DETAIL THE FIRST AMENDMENT MAKES NO DISTINCTION BETWEEN
THAT WHICH IS DONE AS LITERATURE AND THAT WHICH IS DONE AS A HOWTO BOOK
HE SAYS

JACK THOMPSON A MIAMI LAWYER WHO CAMPAIGNED AGAINST THE SONG COP KILLER
SEES IT DIFFERENTLY MOST AMERICANS WANT THE LIKES OF PALADIN PRESS
AGGRESSIVELY PURSUED AND PROSECUTED HE SAYS BUT THEY'VE BEEN ABANDONED
BECAUSE OF A LACK OF WILL BY THE GOVERNMENT AT EVERY LEVEL HE ADDS THE
ACLU HAS BEEN VERY SUCCESSFUL IN CONVINCING AN ENTIRE GENERATION OF
PROSECUTORS THAT YOU CAN'T DO ANYTHING ABOUT THIS STUFF

IN FACT THERE ARE SOME THINGS PALADIN WON'T PUBLISH

ADVICE ON ALTITUDESENSITIVE DETONATION DEVICES FOR EXAMPLE WE DON'T WANT
TO BE THE SCAPEGOATS FOR AN INVESTIGATION OF AN AIRLINER COMING DOWN MR
LUND SAYS

AND EXPLICIT BOOKS ON POISONS

BUT WHY THESE SCRUPLES

WE ALL HAVE OUR BOUNDARIES WOULDN'T YOU SAY MR LUND REPLIES PERHAPS
MY BOUNDARIES ARE DIFFERENT FROM YOURS MY BOUNDARIES ARE DIFFERENT FROM
MANY PEOPLE'S 9301060090 930106 BUSINESS BRIEF ZITEL CORP 
SIGNIFICANT' LOSS ESTIMATED FOR THE FISCAL FIRST QUARTER

ZITEL CORP SAID IT EXPECTS TO REPORT A SIGNIFICANT LOSS FOR ITS FIRST
QUARTER ENDED THURSDAY AS SALES FOR THE PERIOD PLUNGED ABOUT 35

THE MILPITAS CALIF MAKER OF SOLIDSTATE COMPUTER MEMORY DEVICES DIDN'T
GIVE A SPECIFIC ESTIMATE FOR THE LOSS ITS FIRST IN 22 QUARTERS IN THE
YEAREARLIER QUARTER IT EARNED 278000 OR FIVE CENTS A SHARE ON SALES OF
107 MILLION

THE ANNOUNCEMENT WAS MADE MINUTES BEFORE THE MARKET CLOSED ZITEL'S STOCK
FELL 75 CENTS TO CLOSE AT 550 A SHARE IN NATIONAL OVERTHECOUNTER
TRADING

ANALYSTS HAD BEEN PREDICTING PROFIT OF ABOUT 10 CENTS A SHARE FOR THE
PERIOD ACCORDING TO ZACH'S INVESTMENT RESEARCH INC BUT ZITEL SAID SALES
SLUMPED BECAUSE OF INCREASED COMPETITION AND A WEAK EUROPEAN MARKET AMONG
OTHER THINGS 9301060089 930106 BUSINESS BRIEF ACCLAIM ENTERTAINMENT
INC EARNINGS ARE UP SHARPLY MORE GROWTH SEEN IN 1993

VIDEO GAME SOFTWARE MAKER ACCLAIM ENTERTAINMENT INC REPORTED A SHARP
INCREASE IN NET INCOME AND SAID IT EXPECTS THE INDUSTRY TO SHOW CONTINUED
GROWTH IN 1993

ACCLAIM OF OYSTER BAY NY SAID NET INCOME FOR THE FISCAL FIRST QUARTER
ENDED NOV 30 SOARED TO A RECORD 63 MILLION OR 22 CENTS A SHARE FROM
THE YEAREARLIER 25 MILLION OR 12 CENTS A SHARE REVENUE WAS UP 87 TO
788 MILLION FROM 42 MILLION AVERAGE SHARES OUTSTANDING ROSE 32 TO 282
MILLION

ROBERT HOLMES PRESIDENT SAID THAT DURING THE QUARTER ACCLAIM SHIPPED 13
SOFTWARE TITLES INTERACTIVE ENTERTAINMENT SOFTWARE ENJOYED ITS BIGGEST
HOLIDAY SEASON EVER AND ALL INDICATIONS SUGGEST THAT 1993 WILL SEE CONTINUED
GROWTH INDUSTRYWIDE HE SAID 9301060088 930106 BUSINESS BRIEF 
LILLIAN VERNON CORP NET IN FISCAL THIRD QUARTER ROSE 72 ON HOLIDAY
SALES

LILLIAN VERNON CORP MOUNT VERNON NY SAID NET INCOME ROSE 72 FOR THE
FISCAL THIRD QUARTER RIDING THE SALES CREST OF THE HOLIDAY SEASON

NET FOR THE QUARTER ENDED NOV 28 WAS 82 MILLION OR 88 CENTS A SHARE
COMPARED WITH YEAREARLIER FIGURES OF 76 MILLION OR 82 CENTS A SHARE
REVENUE ROSE 97 TO 726 MILLION FROM 662 MILLION

LILLIAN VERNON A CATALOG SPECIALTY MERCHANDISE COMPANY THAT MARKETS GIFT
HOUSEHOLD GARDENING DECORATIVE AND CHILDREN'S PRODUCTS SAID THAT WITH THE
RELEASE OF ITS CHRISTMAS MEMORIES CATALOG AND THE CONTINUATION OF ITS
LILLY'S KIDS CATALOG THE SEASON PRODUCED THE COMPANY'S LARGEST ORDER DAY IN
HISTORY ON NOV 9301060087 930106 ENTERTAINMENT VIDEO GAMES GET RACIER
AS TECHNOLOGY ENABLES MAKERS TO TARGET OLDER PLAYERS  BY PATRICK
M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL

ONE OF THE FASTEST SELLING ELECTRONIC GAMES OF THE CHRISTMAS SEASON PROVIDES
A GLIMPSE OF WHERE VIDEO GAMES MAY BE HEADED NIGHT TRAP IS A CINEMATIC
CDBASED ADVENTURE IN WHICH THE PLAYER MUST PROTECT A HOUSEFUL OF SCANTILY
CLAD YOUNG WOMEN FROM A GANG OF ZOMBIES ARMED WITH BIG HOOKS

DEVELOPED FOR THE NEW HOTSELLING SEGA CD PLAYER BY DIGITAL PICTURES INC
NIGHT TRAP HAS THE SOUND AND FEEL OF A BGRADE SLASHER FLICK STEP ASIDE
SUPER MARIO BROTHERS THE NEXT GENERATION OF GAMES WILL BE RACIER AND MORE
DARING AND OFTEN WILL BE AIMED AT ADULT SENSIBILITIES

WE ARE CHANGING WHAT IS A VERY LIMITED INDUSTRY AIMED AT PREPUBESCENT
TEENAGE BOYS SAYS TOM ZITO PRESIDENT AND CHIEF EXECUTIVE OF DIGITAL
PICTURES MENLO PARK CALIF WHICH HAS DEVELOPED SEVEN OF THE MORE THAN ONE
DOZEN CDBASED GAMES NOW SELLING FOR THE NEW SEGA MACHINE OUR RESEARCH
SHOWS ADULTS AS WELL AS YOUNG TEENS ARE BUYING THIS STUFF THIS IS VERY HIP
AND NOVEL THAT'S WHY IT'S SELLING

AS INDUSTRY EXECUTIVES CONVERGE ON LAS VEGAS TOMORROW FOR THE WINTER
CONSUMER ELECTRONICS SHOW THE 55 BILLION US VIDEOGAME INDUSTRY IS
GOING DIGITAL SEGA ENTERPRISES LTD'S SEGA CD PLAYER HAS FLOWN OFF STORE
SHELVES AT 300 APIECE HOOKING UP TO SEGA VIDEOGAME SYSTEMS TO PLAY WHAT
ARE ESSENTIALLY SMALL INTERACTIVE MOVIES USING REAL ACTORS ON DIGITIZED
FILM

NOW SEGA'S PATH OUT OF THE MAZELIKE WORLD OF MARIO BROTHERS IS BEING
FOLLOWED BY NINTENDO CO AND UPSTART 3DO WHICH BOTH PLAN TO INTRODUCE
CDBASED GAME SYSTEMS LATER THIS YEAR BOTH ARE ALSO EXPECTED TO OFFER
SOFTWARE WITH MORE ADULT THEMES

BUT THE NEW GENERATION OF CD VIDEO GAMES COULD BE FLIRTING WITH TROUBLE
MANY OF THE NEW GAMES STRAIN THE IMAGE OF VIDEO GAMES AS GRATED FAMILY
ENTERTAINMENT SOME SOFTWARE DEVELOPERS HOPING TO AVOID OUTSIDE
INTERFERENCE WANT TO RATE VIDEO GAMES THE WAY FEATURE FILMS ARE RATED TO
APPEASE CONCERNED PARENTS AND WATCHDOG GROUPS

THEN THERE'S THE EXPLODING COST OF NEW GAMES WHOSE BUDGETS ARE APPROACHING
THOSE OF SMALL INDEPENDENT FILMS ONE GAME DEVELOPED BY DIGITAL PICTURES
COST 3 MILLION AND TOOK 15 MONTHS TO MAKE VIDEO GAME PUBLISHER ACCLAIM
ENTERTAINMENT INC SAYS THAT IT WILL DEVELOP COMPUTERGENERATED SYNTHETIC
ACTORS TO LOWER THE COST OF MAKING THE MOVIELIKE GAMES

VIDEO GAMES STARTED AS A LOWEND TOY BUSINESS BUT WITH CD TECHNOLOGY THE
GAMES ARE MORE SOPHISTICATED AND THE DEMOGRAPHICS OF PLAYERS ARE GETTING
OLDER SAYS OLAF OLAFSSON PRESIDENT OF SONY CORP'S ELECTRONIC PUBLISHING
UNIT THE CD GAMES WILL BRIDGE THE GAP BETWEEN TEENAGERS AND ADULTS

PGRATED AND ACTIONPACKED GAMES STILL DOMINATE VIDEOGAME SALES IN THE
HOLIDAY SEASON NINTENDO'S CARTRIDGEBASED STREET FIGHTER II LARGELY A
PUNCHANDKICK GAME FOR CHILDREN SOLD AN IMPRESSIVE 140000 UNITS A WEEK

BUT THE INDUSTRY IS INCREASINGLY INTERESTED IN GAMES THAT DEPICT A DARKER
STEAMIER SLICE OF LIFE AT THE ELECTRONICS SHOW THIS WEEK ATTENDEES WILL
GET A LOOK AT A COMING RELEASE FOR PHILIPS ELECTRONICS NV'S CDINTERACTIVE
SYSTEM VOYEUR AN INTERACTIVE MOVIE STARRING ROBERT CULP OFFERS UP THE
EROTIC OVERTONES OF ROMAN POLANSKI'S CHINATOWN' THE COMPANY SAYS VIEWERS
CAN PEEK IN THE WINDOWS OF HAWKE MANOR AND INVESTIGATE THE PRIVATE AFFAIRS
OF A POTENTIAL PRESIDENTIAL CANDIDATE

DIGITAL'S MAKE MY VIDEO INXS WHICH WILL ARRIVE IN STORES IN MIDJANUARY
OPENS IN A SMOKY POOL HALL THERE PLAYERS MEET AN ASSORTMENT OF TOUGH
CHARACTERS INCLUDING TWO COMELY WOMEN IN TIGHT SKIRTS AND BIG HAIR PLAYERS
GET TO MAKE A VIDEO OF A SONG BY THE INXS ROCK BAND USING 28 SPECIAL EDITING
AIDS INCLUDING STROBE EFFECTS AND FREEZE FRAMES THE WORK IS THEN CRITIQUED
BY THE LADIES

DIGITAL PICTURES WILL ALSO OFFER A LESS SEAMY THOUGH NO LESS STEAMY
VERSION OF SPORTS ILLUSTRATED'S ANNUAL SWIMSUIT ISSUE FOR THE SEGA CD
SYSTEM

INDUSTRY EXECUTIVES SAY SIERRA HAS A DEAL TO TRANSFER LARRY AS IS TO THE
SEGA CD SYSTEM A SEGA SPOKESWOMAN SAYS LARRY ISN'T SCHEDULED AS YET
SIERRA WON'T COMMENT SIERRA'S MR WILLIAMS SAYS HE SUBMITTED LARRY IN THE
PAST TO THE MAJOR VIDEOGAME COMPANIES BUT IT WAS ALWAYS REFUSED THEY SAID
IT WASN'T APPROPRIATE HE SAYS

MR WILLIAMS SAYS HE FAVORS A RATING SYSTEM FOR VIDEO GAMES ONE SIMILAR TO
THAT USED BY THE MOVIE INDUSTRY CONCERNED ABOUT A FAILED CALIFORNIA BILL
THAT SOUGHT TO OUTLAW VIDEO GAMES THAT FEATURE CHARACTERS WHO SMOKE OR
DRINK MR WILLIAMS PUSHED THE SOFTWARE PUBLISHERS ASSOCIATION TO ADOPT A
RATING SYSTEM THE BEST HE COULD GET WAS A NEW SET OF PACKAGING GUIDELINES
TO CLEARLY IDENTIFY THE CONTENTS OF A GAME

AS A PARENT HE WANTS MOM AND DAD TO KNOW WHAT THEY ARE GETTING IN A VIDEO
GAME BUT MR WILLIAMS IS MORE CONCERNED THAT MORE REALISTIC ADULT ELEMENTS
COULD BE BANNED OUTRIGHT FROM VIDEO GAMES CRITICS SEE VIDEO GAMES AS TOYS
NOT A SERIOUS FORM OF ENTERTAINMENT HE SAYS THE REAL DANGER IS THAT
CRITICS COULD DECIDE ADULT CONTENT AS PART OF A TOY IS ILLEGAL AND LEGISLATE
IT OUT OF EXISTENCE

DEVELOPERS ARE MAKING SURE THAT THEIR CATALOGS OF CDBASED VIDEO GAMES
INCLUDE SEDATE FARE DIGITAL PICTURES' MAKE MY VIDEO SERIES INCLUDES
PGRATED CHILD RAPPERS KRIS KROSS WHOSE GAME SOLD 70000 COPIES IN THREE
WEEKS THE COMPANY IS ALSO TALKING WITH JANE FONDA ABOUT MAKING THE FIRST
INTERACTIVE EXERCISE CD

WHEN SOME DEVELOPERS DO OFFER UP RRATED FARE THEY PLAN TO USE DISCRETION
IN MARCH SONY ELECTRONIC PUBLISHING WILL INTRODUCE A SEGA CD GAME BASED ON
BRAM STOKER'S DRACULA THE HIT MOVIE FROM SISTER UNIT COLUMBIA PICTURES
THE FILM IS RIFE WITH FLOWING BLOOD MULTIPLE DECAPITATIONS AND AN ABUNDANCE
OF BARE BREASTS THE GAME WILL FEATURE ACTUAL FILM FOOTAGE AND FOLLOW THE
GOTHIC STORY LINE CLOSELY LETTING PLAYERS ACT AS VAMPIRE STALKERS BUT IT
WON'T USE MOST OF THE BLOODY AND EROTIC SCENES THAT WERE IN THE FILM THAT
INSPIRED IT 9301060086 930106 WHO'S NEWS ATLANTIS GROUP INC

ATLANTIS GROUP INC MIAMI CRAIG A BRUMFIELD WAS NAMED TO THE NEW
POSITION OF EXECUTIVE VICE PRESIDENT AT THE DIVERSIFIED PLASTICS COMPANY
WITH INTERESTS IN FURNITUREMAKING AND INSURANCE MR BRUMFIELD 40 YEARS
OLD IS A CERTIFIED PUBLIC ACCOUNTANT WHO JOINED THE COMPANY IN 1984 HE HAS
SERVED AS VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER SINCE THAT
TIME HE ALSO HAS BEEN A DIRECTOR SINCE 1991 9301060085 930106 WHO'S
NEWS DOW CHEMICAL CO

DOW CHEMICAL CO MIDLAND MICH MICHAEL D PARKER 46 YEARS OLD
FORMERLY PRESIDENT OF THE CHEMICAL CONCERN'S DOW PACIFIC UNIT WAS NAMED TO
THE NEW POSTS OF GROUP VICE PRESIDENT OF BOTH THE COMPANY'S CHEMICALS AND
PERFORMANCE PRODUCTS BUSINESS AND THE HYDROCARBONS AND ENERGY BUSINESS
9301060084 930106 BUSINESS BRIEF MEDIA LOGIC INC STOCK SURGES AS
FIRM SAYS RESULTS WILL TOP ESTIMATES

MEDIA LOGIC INC'S STOCK ROSE SHARPLY AFTER IT SAID SALES AND EARNINGS IN
THE FISCAL THIRD QUARTER ENDED DEC 31 EXCEEDED ANALYSTS' ESTIMATES

IN TRADING ON THE AMERICAN STOCK EXCHANGE MEDIA LOGIC STOCK JUMPED 5375
OR 22 TO CLOSE AT 2975

A SPOKESMAN FOR THE PLAINVILLE MASS MAKER OF COMPUTERBASED TEST
EQUIPMENT SAID SALES IN THE FISCAL THIRD QUARTER EXCEEDED 57 MILLION AND
EARNINGS EXCEEDED THE HIGHEST ANALYST PROJECTION OF 50 CENTS A SHARE BOTH
BY A CONSIDERABLE MARGIN

IN THE YEARAGO QUARTER THE COMPANY EARNED 231255 OR 12 CENTS A SHARE
ON SALES OF 23 MILLION

IN ADDITION THE COMPANY SAID IT HAS ENTERED INTO A LETTER OF INTENT TO BUY
M&M ASSOCIATES A PRIVATELY HELD MORGAN HILL CALIF MAKER OF
HIGHPERFORMANCE COMPUTER DISK DRIVES AND HEADS TERMS WEREN'T DISCLOSED
9301060082 930106 LEISURE & ARTS TASTING CORKS NOT WINE  BY
TESSA DECARLO

NAPA CALIF THE 62 GLASSES OF WINE CIRCLING THE TASTING TABLE AT
TREFETHEN VINEYARDS ARE AN IMPOSING SIGHT PARTICULARLY AT NINE IN THE
MORNING BUT TODAY TREFETHEN'S ENOLOGIST WINE MAKER AND ASSISTANT WINE
MAKER ARE JUDGING NOT WINES BUT CORKS

EACH GLASS HOLDS A LIGHT WHITE WINE IN WHICH A DIFFERENT CORK CHOSEN
RANDOMLY OUT OF 10 10000CORK BALES FROM SIX DIFFERENT SUPPLIERS HAS
SOAKED OVERNIGHT THE THREE MEN GO AROUND THE TABLE STICKING THEIR NOSES
INTO THE GLASSES ONE BY ONE AND SNIFFING DEEPLY

THE BEST CORKS ARE THOSE THAT LEAVE NO TRACE IN THE WINE MOST OF TODAY'S
SAMPLES ARE CLEAN THOUGH HERE AND THERE THE THREE EXPERTS PICK UP WHIFFS OF
COOKED MILK BURLAP SACK AND FRESHCUT PLYWOOD

THE REAL LOSERS HOWEVER ARE OBVIOUS EVEN TO AN AMATEUR NOSE NOS 48
THROUGH 52 ALL FROM THE SAME BALE ARE WHAT WINE MAKER PETER LUTHI CALLS
REAL FECAL AND NO 12 HAS THE UNMISTAKABLE AROMA OF TRICHLOROANISOLE OR
TCA THE CHEMICAL THAT GIVES A CORKED BOTTLE OF WINE ITS UNPLEASANTLY
DISTINCTIVE MILDEW BOUQUET

CORK TASTINGS ARE STILL SOMETHING OF A NOVELTY IN THE NAPA VALLEY BUT
CONCERN ABOUT CORKS IS NOT BECAUSE WINE MAKERS HERE SAY BAD CORKS ARE
RUINING A LOT OF GOOD WINE WHILE SOME WINERIES ARE RESPONDING WITH STIFFER
QUALITY CONTROL OTHERS ARE SEARCHING FOR ALTERNATIVES FROM SCREW CAPS TO
PLASTIC CORKS

TRADITIONAL WINE CORKS ARE CUT FROM THE THICK BARK OF CORK OAKS
TEMPERAMENTAL TREES THAT CAN HAVE THEIR CORK HARVESTED JUST ONCE EVERY NINE
OR 10 YEARS AND GROW ONLY IN CERTAIN MEDITERRANEAN AREAS MOST OF THE CORKS
USED IN AMERICAN WINE BOTTLES COME FROM PORTUGAL

AT ANYWHERE FROM 8 CENTS TO 30 CENTS APIECE CORKS DON'T ADD MUCH TO THE
PRICE TAG ON A BOTTLE OF PREMIUM WINE BUT THANKS TO THE DECLINING DOLLAR
AND RISING PORTUGUESE WAGES THEY COST ALMOST TWICE AS MUCH AS THEY DID IN
THE MID1980S AND WHILE CORK PRICES HAVE BEEN INCREASING SO HAVE REPORTS
OF CORK PROBLEMS

TREFETHEN BEGAN ITS EXTENSIVE CORKTESTING PROGRAM AFTER OFF FLAVORS TRACED
TO ONE LOT OF CORKS FORCED THE WINERY TO DUMP 74000 BOTTLES OF ITS 1987
CHARDONNAY AND PINOT NOIR NOW WE'LL GO THROUGH 20 TASTINGS OF THIS SIZE
BEFORE WE SELECT A CORK LOT THAT IS ACCEPTABLE TO US MR LUTHI SAYS

WHY DOES HE BOTHER WITH CORKS AT ALL PLUGGING BOTTLES WITH TREE BARK MAY BE
RIDICULOUSLY ARCHAIC BUT SO FAR NOTHING ELSE CAN CLAIM CORK'S COMBINATION
OF SEALING QUALITIES AND TRADITIONAL CACHET TAKE SCREW CAPS MOST WINE
MAKERS ADMIT THAT SCREW CAPS WORK JUST AS WELL AS CORKS MAYBE BETTER AT
LEAST FOR WINES THAT ARE NOT GOING TO BE AGED BUT MOST CONSUMERS THINK A
SCREW CAP EQUALS CHEAP JUG WINE

WHEN GLEN ELLEN ONE OF CALIFORNIA'S BIGGEST WINERIES TESTMARKETED A FEW
CASES OF ITS MOST POPULAR WINES IN SCREW CAPS THE RESPONSE WAS FIRMLY
NEGATIVE PEOPLE FELT CORK WAS A BETTER SEAL SAYS THE WINERY'S PUBLIC
RELATIONS DIRECTOR RUSTY EDDY ALTHOUGH IN MOST CASES THAT REALLY ISN'T
TRUE OUR CUSTOMERS STILL WANT REAL CORKS

ANOTHER OPTION GETTING A LOT OF ATTENTION IS A TAN CORKSHAPED PLUG OF
ETHYLENE VINYL ACETATE THE CELLUKORK THE INTEREST HAS BEEN EXPLOSIVE
BEYOND OUR MOST OPTIMISTIC EXPECTATIONS SAYS RICHARD RAPP WHOSE AD AGENCY
REPRESENTS THE MANUFACTURER LERMER PACKAGING CORP

SO FAR ONLY A HANDFUL OF WINERIES USE CELLUKORKS WHICH COST ABOUT 12 CENTS
APIECE ONE IS DEMOOR IN NAPA A SMALL OPERATION THAT NOW HAS CELLUKORKS IN
ABOUT 4000 CASES 15 OF ITS TOTAL PRODUCTION IT SEEMS TO BE MORE
EFFICIENT IN KEEPING THE WINE FRESHER AND FRUITIER SAYS WINE MAKERMANAGER
AARON MOSLEY

CELLUKORKS HAVE THEIR DRAWBACKS HOWEVER THEY ARE SOMETIMES MORE DIFFICULT
TO GET OUT OF THE BOTTLE AND VIRTUALLY IMPOSSIBLE TO REMOVE IF YOU ARE
USING THE TWOPRONGED STYLE OF CORKSCREW AND SEVERAL WINERIES SAY THEY HAVE
HAD PROBLEMS WITH UNIFORMITY WITH SOME CELLUKORKS SPONGY ENOUGH TO LEAK AND
OTHERS SO HARD THEY WON'T GO INTO THE BOTTLES

SUSAN REED COWINE MAKER AT MATANZAS CREEK WINERY IN SONOMA PLANNED TO USE
CELLUKORKS IN SOME 17000 CASES OF WINE AND ENDED UP REJECTING THE ENTIRE
LOT IT'S SOMETHING I'LL DEFINITELY LOOK AT AGAIN SHE SAYS BUT THEY
NEED TO WORK ON THEIR QUALITY CONTROL MR RAPP ACKNOWLEDGES THAT
CELLUKORKS HAVE SUFFERED SMALL VARIATIONS IN DENSITY WE'VE NEVER HAD
PROBLEMS WITH EVEN ONE LEAKING HE SAYS BUT ADDS WE HAVE TIGHTENED
PRODUCTION UP JUST A TAD

MEANWHILE QUALITY CONTROL HAS BECOME THE BATTLE CRY OF THOSE WHO DEAL IN
NATURAL CORK SEVEN OF THE MOST IMPORTANT US SUPPLIERS BANDED TOGETHER IN
JULY TO FORM THE CORK QUALITY COUNCIL AN ORGANIZATION DEVOTED TO IMPROVING
QUALITY STANDARDS AND DEFENDING CORKS AGAINST ALTERNATIVE STOPPERS

CQC'S EXECUTIVE DIRECTOR PAUL WAGNER BELIEVES SLOPPY BOTTLING PRACTICES
CAUSE MUCH OF THE TCA CONTAMINATION THAT'S BLAMED ON CORKS HE POINTS TO
1991 FRENCH REPORTS OF BATCHES OF A POPULAR BOTTLED WATER THAT SOMEHOW
BECAME CORKED INFUSED WITH TCA WITHOUT A CORK IN SIGHT

WE'RE SEEING TCA IN LESS THAN 1 OF OUR CORKS HE SAYS AND THE GOAL IS
TO GET IT TO 0 IF ANYONE'S BUYING CORKS FROM OUR MEMBERS AND THEIR TCA
FIGURES ARE 8 THERE'S SOMETHING ELSE GOING ON

WHILE CORK SUPPLIERS DISMISS CELLUKORKS AS INCONSISTENT AND SCREW CAPS AS
HOPELESSLY DOWNSCALE THEY'RE UPSET BY CORK'S BAD PRESS MR WAGNER BLAMES
IT ON A CONCERTED WORLDWIDE EFFORT BY SOME MAJOR INDUSTRIAL CONCERNS I
MEAN PETROCHEMICAL AND ALUMINUM CORPORATIONS TO OPEN A MARKET TO WHICH
THEY'VE NOT HAD ENTRY BEFORE

BUT JAMES HERWATT GENERAL MANAGER OF FP PORTOCORK INC OF NAPA ISN'T
WORRIED I DON'T THINK SYNTHETIC STOPPERS ARE GOING TO TAKE OVER HE SAYS
CORK HAS THE ADVANTAGE OF BEING A NATURAL PRODUCT LIKE WINE

MS DECARLO IS A FREELANCE WRITER IN NAPA VALLEY CALIF 9301060081
930106 LETTERS TO THE EDITOR WELLS RICH MORE THAN MERE FIZZ'

I'D LIKE TO RESPOND TO YOUR DEC 2 ADVERTISING COLUMN WELLS RICH TRIES TO
SHOW IT STILL HAS FIZZ' CONTRARY TO YOUR IMPLICATIONS WE ARE
FLOURISHING AT WELLS RICH GREENE BDDP OUR CHARISMATIC AND LEGENDARY
LEADER MARY WELLS LAWRENCE RETIRED AND WE JOINED BDDP GROUP IN LESS THAN
12 MONTHS SINCE THEN THE PRESS HAS BEEN KEEPING A WATCHFUL EYE ON THE
AGENCY WE HAVE LIKE MANY OTHER AGENCIES SUFFERED ACCOUNT LOSSES IT'S A
TURBULENT TIME IN A COMPETITIVE INDUSTRY NEVERTHELESS WE ARE ONE OF THE
LEADERS IN CLIENT RETENTION IN THE INDUSTRY

YOU SAID THAT SINCE WE FORMED OUR PARTNERSHIP WITH BDDP WELLS RICH GREENE
BDDP HAS SEEN MOST OF ITS BESTKNOWN ACCOUNTS LEAVE TWO CLIENTS
MENTIONED ALKA SELTZER AND SURE WERE NOT EVEN AT THE AGENCY WHEN BDDP CAME
IN

WE CONTINUE TO WORK HAPPILY AND PRODUCTIVELY FOR FORD IBM PROCTER &
GAMBLE MIDAS CHASE SEAGRAM PHILIP MORRIS CONTINENTAL MILES LIBERTY
MUTUAL ITT CORPORATE ITT SHERATON DUN & BRADSTREET HERTZ SD WARREN
HEUER TIME & ELECTRONIC CORPORATION THE NEW YORK STOCK EXCHANGE UNITED
INDUSTRIES AND RECKITT & COLEMAN

ONE OF THE BEST MEASURES OF AN AGENCY'S HEALTH IS ITS ABILITY TO GAIN NEW
BUSINESS FROM EXISTING CLIENTS THIS YEAR ALONE WE WERE AWARDED NEARLY 20
ADDITIONAL PIECES OF BUSINESS FROM CURRENT CLIENTS THIS INCLUDES NEW
ASSIGNMENTS FROM SEAGRAM DUN & BRADSTREET CHASE CONTINENTAL RECKITT &
COLEMAN IBM ITT SHERATON ITT CORPORATE AND PROCTER & GAMBLE

THE STRENGTH OF THE BDDP NETWORK IS CLEARLY INDICATED BY THE INTERNATIONAL
EXPANSION OF US CLIENTS WITHIN THE NETWORK THOSE CLIENTS INCLUDE HERTZ
MIDAS CONTINENTAL ITT SHERATON ITT CORPORATE AND IBM WE'VE ALSO HAD TWO
EUROPEAN CLIENTS COME TO THE US HEUER TIME & ELECTRONICS CORPORATION AND
RECKITT & COLEMAN

IN THE MIDST OF A SEVERE RECESSION OUR BILLINGS OF 923 MILLION WILL BE
FLAT THIS YEAR CONSISTENT WITH MOST OF OUR CLIENTS' BUSINESSES WE THINK
THAT IS A VERY RESPECTABLE SHOWING TODAY WE ARE A MAJOR GLOBAL AGENCY WITH
DIVERSIFIED SERVICES TWO AND A HALF YEARS AGO WE COULDN'T SAY THAT

CHANGE IS NOT EASY BUT GOD KNOWS THIS INDUSTRY MUST TAKE A GOOD LOOK AT
ITSELF AND MAKE SOME POSITIVE CHANGES OR WE WILL ALL BE OBSOLETE WE'VE
STEPPED UP TO THE PLATE WITH AN IDEA THAT WE THINK WILL HAVE A PROFOUND
IMPACT ON OUR AGENCY AND PERHAPS EVEN THE INDUSTRY WE CALL IT MARKETPLACE
DISRUPTION DISRUPTION IS A MANAGEMENT METHOD WE CREATED TO HELP INCREASE
OUR CHANCES OF HITTING A CREATIVE HOME RUN IT HELPS US COME UP WITH BIG
IDEAS FASTER WHAT IS NEW IS OUR UNDERSTANDING THAT WHAT WE AND OTHERS HAVE
DONE IN THE PAST IN AD HOC AND INTUITIVE WAYS MUST NOW BE DONE IN A
SYSTEMATIC WAY

THE STORY SHOULD BE NOT ABOUT WHETHER WE STILL HAVE FIZZ BUT ABOUT HOW
WE'RE REINVENTING THE FUNDAMENTAL WAY WE WORK AND HOW WE'RE DOING OUR SMALL
PART TO HELP TRANSFORM THE ADVERTISING INDUSTRY 9301060080 930106 HEARD
ON THE STREET XEROX STOCK'S HEALTHY JUMP IN THE NEW YEAR IS TIED TO
HOPES FOR SHEDDING FINANCIAL SERVICES  BY CRAIG TORRES STAFF
REPORTER OF THE WALL STREET JOURNAL

NEW YORK THE NEW YEAR HAS BARELY BEGUN AND ALREADY SHARES OF XEROX HAVE
PRINTED UP A 6 GAIN FOR INVESTORS SOME BUYERS THINK THE STOCK CAN
DUPLICATE ITS RECENT STRENGTH IN THE NEXT FEW WEEKS

WHAT'S GOT WALL STREET EXCITED IS THAT THE COPIERPRODUCTS CONGLOMERATE IS
BELIEVED TO BE PREPARING TO ANNOUNCE MORE CHANGES IN ITS FINANCIAL SERVICES
BUSINESS THE ULTIMATE GOAL IS TO RENEW XEROX'S MISSION IN LIFE AS A
COPYINGEQUIPMENT COMPANY ANALYSTS SAY AND INVESTORS HEARTILY APPROVE OF
THAT PLAN

YESTERDAY THE STOCK JUMPED 1 3/4 TO FINISH AT 84 1/8 ON 530000 SHARES
EXTENDING A SURGE THAT LIFTED THE STOCK 3 1/8 MONDAY

ABOUT A WEEK BEFORE FOURTHQUARTER EARNINGS ARE REPORTED ON JAN 29
ANALYSTS EXPECT XEROX TO ANNOUNCE ANOTHER RESTRUCTURING OF ITS CRUM &
FORSTER INSURANCE UNIT AND MAYBE AN AGREEMENT TO SELL INVESTMENT BANKING
UNIT FURMAN SELZ XEROX ALREADY HAS AGREED TO SELL ITS VAN KAMPEN MERRITT
MUTUAL FUND BUSINESS FOR 360 MILLION

BUYERS SWARMING AROUND THE STOCK ARE EXCITED BY OPPORTUNITIES IN XEROX'S
CORE COPYINGEQUIPMENT BUSINESS THE QUESTIONS ON THE MINDS OF INVESTORS
NOW HOW FAST CAN THE EXIT FROM FINANCIAL SERVICES BE COMPLETED ON WHAT
TERMS AND WHAT KIND OF COMPANY ARE XEROX SHAREHOLDERS LEFT WITH WHEN THE
DEAL IS DONE

THEY ARE TRYING TO CLEAN UP THE WHOLE FINANCIAL SERVICES OPERATION IN
PREPARATION FOR DOWNSIZING AND DEEMPHASIS SAYS EUGENE GLAZER SENIOR VICE
PRESIDENT AT DEAN WITTER THEY WANT TO END UP IN DOCUMENT PROCESSING AS
THEIR SOLE BUSINESS AND TO EXIT FINANCIAL SERVICES AS GRACEFULLY AS THEY
CAN

BY GRACEFULLY MR GLAZER ALSO MEANS PROFITABLY XEROX HAS ABOUT 25
BILLION IN DEBT ON ITS BALANCE SHEET RELATED TO ITS FINANCIAL SERVICES
UNITS BULLS ON THE STOCK HOPE DIVESTITURES OCCUR AT PRICES THAT WILL PAY
DOWN THE DEBT COMPLETELY

BUT TO MAKE ITS INSURER ATTRACTIVE XEROX MAY HAVE TO PUMP MORE MONEY INTO
ITS RESERVES ALSO EVEN THOUGH INSURANCE STOCK PRICES ARE UP SOME ANALYSTS
DON'T EXPECT CRUM & FORSTER TO BE SOLD ANY TIME SOON THOUGH THEY DO THINK
XEROX WILL CONTINUE TO TAKE STEPS TO MAKE THE INSURER ATTRACTIVE

WHAT MATTERS TO STOCK BUYERS TODAY IS THAT XEROX MANAGEMENT SEEMS TO BE
PERSEVERING IN ITS INTENTION TO GET OUT OF FINANCIAL SERVICES AT PRICES THAT
WILL BEST SERVE SHAREHOLDERS

XEROX'S STOCK IS MOVING ON THE BELIEF THAT CHAIRMAN PAUL ALLAIRE IS MOVING
ON THE DISPOSAL OF THE PROPERTYCASUALTY INSURER CRUM & FORSTER SO THEY CAN
BE A PURE DOCUMENT COMPANY SAYS TERRY MOGIL ANALYST AT CHANCELLOR CAPITAL
MANAGEMENT A NEW YORK MONEY MANAGER

TODAY XEROX STOCK TRADES AT ABOUT 105 TIMES 1994 EARNINGS ESTIMATES OF 8
A SHARE STRIPPED OF FINANCIAL SERVICES BUSINESSES WHICH TYPICALLY GARNER
SINGLEDIGIT MULTIPLES OF EARNINGS BULLS THINK THE PURE COPYING COMPANY
COULD TRADE AT CLOSER TO 15 TIMES 1994 ESTIMATES

YOU COULD GET A 120 STOCK SAYS PAUL HAAGENSEN ANALYST AT PUTNAM COS IN
BOSTON A XEROX SHAREHOLDER IN THE NEXT FEW YEARS XEROX'S COPYING BUSINESS
COULD SEE REVENUE GROW AT ABOUT 10 ANNUALLY UP FROM 8 IN 1991 MR
HAAGENSEN PREDICTS HE ALSO THINKS NET INCOME COULD GROW AT A SLIGHTLY
STRONGER RATE THAN REVENUE

LAST FEBRUARY XEROX RESTRUCTURED ITS DOCUMENTPROCESSING BUSINESSES INTO
NINE SEGMENTS EACH WITH ITS OWN PRESIDENT THE THINKING IS THAT THE
DIVISIONS WILL HAVE A STRONGER FOCUS ON EXPENSE CONTROLS AND PROFITABILITY
AND SQUEEZE MORE NET INCOME OUT OF TOTAL SALES FOR THE COMPANY

BUT WHAT'S SO EXCITING ABOUT A COPYING BUSINESS BULLS THINK XEROX CAN
POSITION ITSELF AS AN IMPORTANT LINK IN OFFICE PERSONALCOMPUTER NETWORKING

MR HAAGENSEN OF PUTNAM SAYS FOR YEARS PEOPLE SAID THAT DIGITAL OR
COMPUTERIZED INFORMATION WOULD OBSOLETE' THE NEED FOR PAPER AS IT TURNS
OUT DIGITAL TECHNOLOGY ENHANCED THE USE OF PAPER

HE'S EXCITED BY XEROX'S DOCUTECH MACHINE WHICH LINKS UP TO PERSONAL
COMPUTERS AND SERVES AS AN OFFICE PRINT SHOP IT COMBINES A LASER PRINTER
WITH COPYING AND BINDING CAPABILITIES

EDWARD PETNER EXECUTIVE VICE PRESIDENT OF LYNCH & MAYER A NEW YORK MONEY
MANAGEMENT FIRM THINKS THAT XEROX IS PULLING AWAY FROM EASTMAN KODAK IN THE
LARGEOFFICECOPIER MARKET

BURIED UNDERNEATH THIS UGLY FINANCIAL SERVICES BUSINESS XEROX HAS MADE A
LOT OF PROGRESS AS A COPYING COMPANY HE SAYS I DON'T VIEW IT AS A
HIGHRISK STOCK COULD IT BE DEAD MONEY FOR THE NEXT YEAR IT COULD IS IT
GOING TO BE A BIG HURTER I DOUBT IT 9301060079 930106 MARKETING &
MEDIA BURCHILL LEAVES LIFETIME TO BE PRESIDENT OF PETRY

NEW YORK THOMAS F BURCHILL RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE
OFFICER OF THE LIFETIME CABLE CHANNEL TO BUY A SUBSTANTIAL STAKE IN PETRY
INC AND BECOME PRESIDENT OF THE TV STATION CONSULTING FIRM

FINANCIAL TERMS OF THE DEAL WEREN'T DISCLOSED LIFETIME WHICH IS JOINTLY
OWNED BY HEARST CORP CAPITAL CITIES/ABC INC AND VIACOM INC SAID A
SUCCESSOR TO MR BURCHILL WILL BE NAMED SHORTLY

DAVID S ALLEN CURRENTLY CHAIRMAN AND CHIEF EXECUTIVE OF PETRY WILL
CONTINUE AS CHAIRMAN HE WILL YIELD THE CEO TITLE TO MR BURCHILL ON FEB 1
MR BURCHILL 50 YEARS OLD WORKED AT PETRY IN THE LATE 1960S HE BECAME
PRESIDENT AND CEO OF HEARST/ABCVIACOM ENTERTAINMENT SERVICES THE ENTITY
THAT OVERSEES LIFETIME IN APRIL 1984 FOLLOWING THE LAUNCH OF THAT
WOMENORIENTED CABLE SERVICE

I'M RETURNING TO A COMPANY I KNOW SAID MR BURCHILL IT'S IN SOLID
FINANCIAL SHAPE AND I HOPE TO PROVIDE THE NEXT GENERATION OF MANAGEMENT
THERE MY FIRST PRIORITY IS TO WIN THE CONFIDENCE OF PETRY STATIONS
9301060078 930106 CHELSEA CLINTON TO ATTEND PRIVATE WASHINGTON SCHOOL

LITTLE ROCK ARK PRESIDENTELECT CLINTON WILL ENROLL HIS 12YEAROLD
DAUGHTER CHELSEA AT SIDWELL FRIENDS SCHOOL A PRIVATE SCHOOL IN
WASHINGTON

GEORGE STEPHANOPOULOS MR CLINTON'S COMMUNICATIONS DIRECTOR SAID THAT IN
MAKING THE DECISION THE FAMILY DIDN'T REJECT PUBLIC SCHOOLS HE SAID THE
CLINTONS DECIDED THAT SIDWELL WAS NOW BEST FOR CHELSEA WHO ATTENDED PUBLIC
SCHOOLS IN LITTLE ROCK SHE IS IN THE SEVENTH GRADE

MR CLINTON MAY FACE SOME CRITICISM FOR THE DECISION SINCE HE HAS BEEN AN
ADVOCATE FOR IMPROVING PUBLIC SCHOOLS

MR STEPHANOPOULOS SAID THE FAMILY CHOSE SIDWELL BECAUSE IT IS A GOOD
SCHOOL IT'S AN ACADEMICALLY CHALLENGING SCHOOL AND IT'S A SCHOOL THAT
CHELSEA AND HER PARENTS FEEL THAT SHE'LL BE CHALLENGED AND PRODUCTIVE AND
HAPPY IN

MR STEPHANOPOULOS SAID CHELSEA PLAYED A ROLE IN THE DECISION AND THAT ONE
FACTOR WAS THE REQUIREMENT THAT STUDENTS WORK AT SIDWELL AND PROVIDE
COMMUNITY SERVICE HE DISMISSED ANY SUGGESTION THAT ATTENDING A PUBLIC
SCHOOL MAY HAVE PRESENTED INCREASED SECURITY RISKS 9301060077 930106
BUSINESS BRIEF TEMPLEINLAND INC TALKS END ON JOINT VENTURE WITH
COMPANY IN MEXICO

TEMPLEINLAND INC DIBOLL TEXAS SAID ITS INLAND CONTAINER CORP UNIT
TERMINATED JOINTVENTURE DISCUSSIONS WITH GRUPO INDUSTRIAL DURANGO A FOREST
PRODUCTS CONCERN BASED IN DURANGO MEXICO

A LETTER OF INTENT BETWEEN THE TWO CONCERNS TO FORM A 5050 JOINT VENTURE IN
THE MEXICAN CORRUGATED PACKAGING INDUSTRY WAS ANNOUNCED NOV 6 BUT INLAND
CONTAINER SAID THAT AFTER WEEKS OF DISCUSSIONS A DEFINITIVE AGREEMENT
COULDN'T BE REACHED A SPOKESMAN FOR THE INLAND UNIT SAID THE DISCUSSIONS
ENDED AMICABLY BUT DECLINED TO PROVIDE DETAILS

TEMPLEINLAND A PAPER PACKAGING AND FINANCIAL SERVICES COMPANY SAID ITS
INLAND CONTAINER UNIT WOULD REVIVE ITS ORIGINAL PLAN ANNOUNCED LAST MAY TO
ESTABLISH A CORRUGATED BOXMANUFACTURING PLANT IN THE MEXICO CITY AREA THE
COMPANY SAID A SEARCH FOR A SITE IS UNDER WAY 9301060076 930106 POLITICS
& POLICY FORMER HUD AIDE 2 OTHERS CONVICTED OVER GRATUITIES  
BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL

WASHINGTON A FORMER TOP AIDE IN THE REAGAN ADMINISTRATION'S HOUSING
DEPARTMENT AND TWO BUSINESSMEN WERE CONVICTED OF GIVING GRATUITIES TO A
FEDERAL OFFICIAL IN CONNECTION WITH GOVERNMENT CONTRACTS

LANCE WILSON WHO WAS EXECUTIVE ASSISTANT TO HOUSING AND URBAN DEVELOPMENT
SECRETARY SAMUEL PIERCE WAS CONVICTED IN FEDERAL COURT HERE ON ONE FELONY
COUNT WHICH IS PUNISHABLE BY TWO YEARS IN PRISON AND A FINE UP TO 250000
BUT ALL THREE DEFENDANTS WERE ACQUITTED OF OTHER RELATED CHARGES INCLUDING
MORE SERIOUS ONES ALLEGING BRIBERY AND CONSPIRACY

MR WILSON WAS CONVICTED OF GIVING A GRATUITY A WEEKEND IN NEW YORK AND
CASH TO DUBOIS GILLIAM AT THE TIME MR GILLIAM WAS A HUD DEPUTY
ASSISTANT SECRETARY AND MR WILSON WAS WORKING FOR PAINEWEBBER INC MR
WILSON'S INDICTMENT SAID HE FALSELY CLAIMED THAT PAINEWEBBER WOULD FINANCE
THREE PROJECTS FOR WHICH LEONARD BRISCOE A FT WORTH TEXAS DEVELOPER
SOUGHT HUD SUBSIDIES PAINEWEBBER WASN'T NAMED IN THE INDICTMENT

MR BRISCOE AND OMAHA LAWYER MAURICE STEIER ALSO WERE CONVICTED ON TWO
COUNTS EACH OF GIVING OR OFFERING GRATUITIES TO MR GILLIAM THE GRATUITIES
THE PROSECUTION SAID WERE 100000 FOR HUDFUNDED PROJECTS SOUGHT BY MR
BRISCOE MR GILLIAM PLEADED GUILTY IN 1989 TO CORRUPTION CHARGES REGARDING
HUD CONTRACTS

GIVING A GRATUITY AND BRIBERY ARE BOTH FELONIES BUT CONVICTION ON A
GRATUITIES CHARGE DOESN'T REQUIRE THE PROOF OF CORRUPT INTENT

THIS WAS THE FIRST TRIAL TO GROW FROM THE HUD INFLUENCEPEDDLING SCANDAL
THAT CAME TO LIGHT SHORTLY AFTER THE REAGAN ADMINISTRATION LEFT OFFICE
SENTENCING FOR ALL THREE MEN WAS SET FOR MARCH BUT MR BRISCOE WAS
IMMEDIATELY SENT TO JAIL FOR A TWODAY CONTEMPT SENTENCE ALL THREE MEN
INDICATED THEY WILL APPEAL

MR WILSON'S LAWYER TED WELLS CALLED THE VERDICT A MAJOR WIN BECAUSE
HIS CLIENT WAS FOUND NOT GUILTY ON ALL BUT ONE CHARGE THIS CASE BLEW UP IN
THE FACE OF THE INDEPENDENT COUNSEL HE ADDED THEIR VERY FIRST CASE TO GO
TO TRIAL TURNED OUT TO BE A COMPLETE DEFEAT FOR THEM

MESSRS BRISCO AND STEIER COULDN'T BE REACHED FOR COMMENT

THE INDEPENDENT COUNSEL ARLIN ADAMS ISSUED A STATEMENT PRAISING THE WORK
OF THE INVESTIGATORS AND GOVERNMENT LAWYERS SAYING THE PROSECUTORS DID A
SPLENDID JOB TRYING THIS CASE

OTHER CASES INCLUDING THOSE OF OTHER TOP PIERCE AIDES AWAIT TRIAL IN
JULY DEBORAH GORE DEAN FORMER EXECUTIVE ASSISTANT TO MR PIERCE WAS
INDICTED ON 13 FELONY COUNTS ALLEGING CORRUPTION REGARDING HUD FUNDING
DECISIONS

LAST MONTH THOMAS DEMERY FORMER ASSISTANT HUD SECRETARY DURING PRESIDENT
REAGAN'S LAST TERM WAS INDICTED ON 19 FELONY COUNTS CONCERNING HIS
FINANCIAL RELATIONSHIPS WITH DEVELOPERS WHO RECEIVED HUD BENEFITS MR
ADAMS WHO HAS SECURED FOUR GUILTY PLEAS FROM OTHERS IN THE HUD SCANDAL
SAID HIS OFFICE CONTINUES ITS INVESTIGATION 9301060075 930106 LEISURE &
ARTS BOOKSHELF DIPLOMACY MAKING PEACE NOT FRIENDS  BY SIMON
BARBER

CHESTER A CROCKER A SELFDESCRIBED UTILITY INFIELDER IN HENRY KISSINGER'S
NATIONAL SECURITY COUNCIL WAS DEPUTIZED IN 1981 AS RONALD REAGAN'S
ASSISTANT SECRETARY OF STATE FOR AFRICAN AFFAIRS FOR THE NEXT SEVEN YEARS
HE DEVOTED HIMSELF TO MAKING PEACE IN THE CONTINENT'S SOUTHERN CONE AT
HOME HIS MASTERS GAVE HIM UNUSUALLY BROAD DISCRETION BUT ALSO TRIED TO
SUBVERT HIM IN AFRICA HE WAS UP AGAINST A BUNCH OF EXTREMELY TOUGH
CUSTOMERS IN THE END HE WON AND RETURNED TO PRIVATE LIFE LARGELY
UNTHANKED

HIGH NOON IN SOUTHERN AFRICA MAKING PEACE IN A ROUGH NEIGHBORHOOD
NORTON 533 PAGES 2995 IS HIS APTLY TITLED AND UNCOMMONLY
WELLWRITTEN MEMOIR OF HIS EFFORTS TO BRING LAW ORDER AND DECENCY TO A
TRULY GODFORSAKEN REGION ITS FOCUS IS HIS PROTRACTED DIPLOMACY TO END THE
MULTIPLE CYCLES OF VIOLENCE DERIVING FROM THE DEATH THROES OF SOUTH AFRICAN
APARTHEID CIVIL WAR IN ANGOLA AND MOZAMBIQUE PRETORIA'S ILLEGAL OCCUPATION
OF NAMIBIA AND SOVIET/CUBAN ADVENTURISM

THE CENTERPIECE OF MR CROCKER'S GAME PLAN WAS TO LINK SOUTH AFRICA'S
DEPARTURE FROM NAMIBIA UNDER A UNITED NATIONS INDEPENDENCE PLAN DEVELOPED
BY THE ADMINISTRATION OF JIMMY CARTER WITH THE WITHDRAWAL OF CUBAN FORCES
FROM ANGOLA THIS CAUSED HOWLS OF OUTRAGE FROM CRITICS WHO INSISTED THAT
THE CUBANS WERE ONLY THERE TO DEFEND ANGOLA AGAINST SOUTH AFRICA AND ITS
PROXY THE UNITA REBEL MOVEMENT AND THAT SUCH LINKAGE WOULD MERELY GIVE
THE SOUTH AFRICANS AN EXCUSE TO PREVARICATE

VINDICATION CAME FROM AN UNLIKELY QUARTER FIDEL CASTRO WHO BY THE
MID'80S WAS LOSING FAITH IN HIS ANGOLAN AND SOVIET ALLIES WHAT CLINCHED
THINGS WAS THE DESTRUCTION OF A SOVIETANGOLAN ARMY BY UNITA AND SOUTH
AFRICAN FORCES ON THE LOMBA RIVER IN THE FALL OF 1987 THE DEBACLE LED
CASTRO TO LOOK FOR A FACESAVING EXIT FINALLY IN JUNE 1988 THE CHIEF
CUBAN NEGOTIATOR CALLED ON THE SOUTH AFRICANS AND ANGOLANS TO JOIN IN A
STATEMENT OF PRINCIPLES POINTING THE WAY TO PEACE WITHOUT LOSERS UNDER
WHICH ALL PARTIES COULD BE SEEN AS CONTRIBUTING TO BIRTH OF AN INDEPENDENT
NAMIBIA

MR CROCKER DOWNPLAYS THE CONTRIBUTION OF MIKHAIL GORBACHEV'S NEW
THINKING ARGUING THAT THE SOVIETS DID NOT EVEN BEGIN TO BE HELPFUL UNTIL
MUCH LATER WHEN ALL THAT REMAINED WAS TO IRON OUT DIFFERENCES OVER
TIMETABLES THE FINAL ACCORDS WERE SIGNED AT THE UN IN DECEMBER 1988
LATER IN HAVANA CASTRO TRIED TO PIN A MEDAL ON THE AMERICAN MEDIATOR

READERS ON THE RIGHT WILL BE PLEASED TO KNOW THAT MR CROCKER DIDN'T ACCEPT
IT BUT THERE ISN'T MUCH ELSE FOR THEM TO CHEER ABOUT THE BOOK ALSO
CONTAINS SAVAGE CRITICISM OF THE REAGAN WHITE HOUSE CHARGING THAT SEVERAL
OF THE PRESIDENT'S ADVISERS AMONG THEM CENTRAL INTELLIGENCE AGENCY DIRECTOR
BILL CASEY CONNIVED WITH SOUTH AFRICAN PRESIDENT PW BOTHA'S HARDLINERS
TO SUBVERT MR CROCKER'S EFFORTS AND FORGE A DE FACTO ALLIANCE BETWEEN
WASHINGTON AND PRETORIA

THE WHITE HOUSE GETS MUCH OF THE BLAME FOR THE SOUTH AFRICAN SANCTIONS
CONGRESS ENACTED OVER MR REAGAN'S VETO IN 1986 RESULTING IN A MAJOR LOSS
OF THE EXECUTIVE'S FOREIGNPOLICY POWER MR REAGAN'S INABILITY TO EXPRESS
ANY KIND OF SYMPATHY FOR APARTHEID'S VICTIMS WAS PART OF THE PROBLEM BUT
WORSE IN MR CROCKER'S VIEW WAS THE POLICY FREELANCING OF ADVISERS SUCH
AS CHIEF OF STAFF DON REGAN NSC CHIEF ADMIRAL JOHN POINDEXTER AND PATRICK
BUCHANAN WHICH SENT EVEN LOYAL CONGRESSIONAL REPUBLICANS RUNNING FOR COVER
AS SOUTH AFRICA'S INTERNAL REPRESSION MOUNTED

LIKE IRANCONTRA MR CROCKER WRITES THE SOUTH AFRICA POLICY FIASCO WAS
SCANDALOUS THERE WAS NO DISCIPLINE NO SYSTEM AND APPARENTLY NO MEANS OF
KEEPING UNAUTHORIZED PERSONNEL AWAY FROM THE VITAL MACHINERY OF
DECISIONMAKING EVERY MAJOR ELEMENT OF OUR SOUTHERN AFRICAN POLICIES 
POLICIES SECRETARY OF STATE GEORGE SHULTZ HAD OBTAINED PRESIDENTIAL APPROVAL
FOR WAS SUBJECT TO ONE FORM OF SABOTAGE OR ANOTHER

AFTER THE SIGNING OF THE NAMIBIAANGOLA ACCORDS IN 1988 MR SHULTZ SURVEYED
THE CAST AND TOLD MR CROCKER THAT'S SOME BUNCH OF CHARACTERS YOU'VE BEEN
DEALING WITH MINUTES EARLIER SOUTH AFRICA'S VOLATILE FOREIGN MINISTER PIK
BOTHA HAD PUBLICLY CHALLENGED HIS CUBAN COUNTERPART TO STEP OUTSIDE OVER
THEIR HUMANRIGHTS RECORDS

THAT THE US SHOULD HAVE BROKERED THE AGREEMENTS REMAINS ALL THE MORE
REMARKABLE GIVEN ITS RELATIONS WITH THE PARTIES SOUTH AFRICA WAS SUBJECT TO
SWEEPING ECONOMIC SANCTIONS CUBA TO A TOTAL EMBARGO AND USBACKED REBELS
WERE CONTINUING TO BATTLE THE ANGOLAN GOVERNMENT BUT THE PACTS THEY SIGNED
THAT DAY ARE TESTIMONY TO THEIR REGARD FOR MR CROCKER'S MEDIATION

HIGH NOON SHOWS WHAT TOUGHMINDED AND PERSISTENT DIPLOMACY CAN ACHIEVE EVEN
UNDER THE MOST UNPROMISING OF CIRCUMSTANCES IT IS ALSO A PRIMER ON THE ART
AND ONE THAT MR CROCKER'S SUCCESSORS IN BILL CLINTON'S ADMINISTRATION WOULD
BE WISE TO LEARN FROM AS THEY CONFRONT THE MANY OTHER ROUGH NEIGHBORHOODS OF
THE NEW WORLD ORDER

MR BARBER IS THE WASHINGTON CORRESPONDENT FOR TIMES MEDIA LTD A SOUTH
AFRICAN NEWSPAPER CHAIN 9301060074 930106 BUSINESS BRIEF KELLOGG CO
 PRICES ON MOST US CEREALS ARE RAISED AN AVERAGE 32

KELLOGG CO BATTLE CREEK MICH RAISED PRICES ON MOST OF ITS US
BREAKFAST CEREAL LINE AN AVERAGE 32

THE COMPANY CITED BUSINESS COSTS FOR ITS LATEST INCREASE NOT ALL CEREALS
ARE AFFECTED A KELLOGG SPOKESMAN SAID WITHOUT IDENTIFYING THE EXCEPTIONS

THE INCREASE WHICH TOOK EFFECT ON SATURDAY FOLLOWS ONE AVERAGING 35
TAKEN IN MAY ANNUAL INCREASES HAVE BECOME THE INDUSTRY NORM IN RECENT
YEARS SIMILARLY WHEN ONE COMPANY RAISES PRICES COMPETITORS GENERALLY
FOLLOW SUIT

BOTH QUAKER OATS CO AND THE POST CEREALS DIVISION OF PHILIP MORRIS COS'
KRAFT GENERAL FOODS UNIT SAID THEY ARE STUDYING THE SITUATION NEITHER
GENERAL MILLS INC NOR RALSTON PURINA CO WOULD COMMENT ON THEIR INTENTIONS

THE WORLD'S LEADING MAKER OF READYTOEAT CEREALS KELLOGG HAS ABOUT A 38
SHARE OF THE 8 BILLION US MARKET