NEW YORK THORN EMI PLC PLANS TO ANNOUNCE TODAY THE PROMOTION OF CHARLES KOPPELMAN AS THE HEAD OF ALL ITS NORTH AMERICAN RECORD OPERATIONS EFFECTIVE APRIL 1 MR KOPPELMAN 52 YEARS OLD IS NOW RUNNING THREE LABELS FOR LONDONBASED THORN EMI SBK RECORDS CHRYSALIS AND EMI RECORDS FROM NEW YORK MR KOPPELMAN WILL BE ASSUMING THE ADDITIONAL DUTIES OF JOE SMITH 64 WHO WILL ANNOUNCE PLANS TO RETIRE IN MARCH AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CAPITOLEMI MUSIC MR SMITH HAS BEEN IN CHARGE OF CAPITOL RECORDS IN LOS ANGELES COUNTRY LABEL LIBERTY RECORDS IN NASHVILLE THE ANGEL AND BLUE NOTE LABELS AS WELL AS MERCHANDISING AND DISTRIBUTION FOR ALL OF THORN EMI'S AMERICAN RECORD BUSINESS THE CHANGE HAS BEEN RUMORED FOR SOME TIME MR SMITH A RESPECTED INDUSTRY VETERAN WAS INSTRUMENTAL IN TURNING AROUND EMI'S US LABELS MR KOPPELMAN WHO SOLD HIS MUSIC PUBLISHING FIRM SBK TO THORN EMI IN 1989 WENT ON TO BUILD SBK INTO ONE OF THE HOTTEST RECORD LABELS AROUND ALTHOUGH SOME OF ITS STARS FADED FAST MR KOPPELMAN IS BUILDING A NEW STABLE OF STARS INCLUDING ALTERNATIVE RAP ACT ARRESTED DEVELOPMENT 9301060072 930106 TECHNOLOGY FDA BEGINS PROCESS TO EVALUATE SAFETY EFFECTIVENESS OF SALINE BREAST IMPLANTS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION LAUNCHED A PROCESS TO REQUIRE MAKERS OF SALINE BREAST IMPLANTS TO SHOW THAT THE DEVICES ARE SAFE AND EFFECTIVE AS A FIRST STEP THE AGENCY IS SEEKING PUBLIC COMMENT ON A PROPOSAL THAT MANUFACTURERS SUBMIT ALL RELEVANT DATA FOR REVIEW AFTER CONSIDERING THE COMMENTS THE AGENCY IS EXPECTED TO ISSUE A FINAL RULE REQUIRING PRODUCERS TO SUBMIT THE DATA WITHIN 90 DAYS THE FDA WILL THEN USE THAT DATA TO DETERMINE WHETHER EACH MANUFACTURER SHOULD BE ALLOWED TO CONTINUE TO MARKET ITS DEVICE AND WHAT RESTRICTIONS IF ANY SHOULD APPLY MAYBE THEY'RE SAFE MAYBE THEY'RE UNSAFE SAID FDA COMMISSIONER DAVID KESSLER IN AN INTERVIEW WE CAN'T SAY EITHER WAY WE'RE JUST SAYING DATA NEEDS TO BE SUBMITTED THE FDA'S ACTION ON SALINE IMPLANTS FOLLOWS SIMILAR MOVES TAKEN FOR SILICONEGEL IMPLANTS IN THE WAKE OF THE CONTROVERSY THAT ERUPTED IN THE FALL OF 1991 OVER THE SAFETY OF THOSE DEVICES AT THAT TIME AS MANY AS 150000 WOMEN A YEAR WERE ESTIMATED TO BE RECEIVING IMPLANTS FOR BREAST RECONSTRUCTION AFTER CANCER SURGERY OR FOR COSMETIC REASONS THE FDA CURRENTLY LIMITS THE USE OF SILICONEGEL IMPLANTS TO CLINICAL TRIALS SALINE IMPLANTS CONTAIN SALT WATER RATHER THAN SILICONE GEL BUT BOTH DEVICES ARE CONTAINED IN A SILICONE SHELL MENTOR CORP OF SANTA BARBARA CALIF WHICH MAKES SALINE IMPLANTS SAID IN A STATEMENT THAT IT IS PLEASED WITH THE FDA'S ACTION AND WOULD WORK CLOSELY WITH THE AGENCY IN PROVIDING THE REQUIRED DATA LAS VEGASBASED INAMED CORP THE OTHER MAJOR PRODUCER OF SALINE IMPLANTS DECLINED TO COMMENT THE FDA ALSO SAID IT PLANS TO CALL FOR DATA ON THE SAFETY AND EFFECTIVENESS OF TESTICULAR AND PENILE IMPLANTS THESE IMPLANTS AS WELL AS THE BREAST IMPLANTS WERE ON THE MARKET BEFORE 1976 WHEN THE FDA GOT REGULATORY AUTHORITY OVER THEM SALINE BREAST IMPLANTS WILL BE ALLOWED TO STAY ON THE MARKET WHILE THE FDA GATHERS THE DATA SUBJECT TO CERTAIN LIMITATIONS THAT ALREADY APPLY FOR EXAMPLE A WOMAN CONSIDERING A SALINE OR SILICONE BREAST IMPLANT MUST BE GIVEN A BROCHURE LAYING OUT THE POTENTIAL RISKS INVOLVED WITH THE SURGERY AND THE DEVICE FOR SALINE IMPLANTS THESE RISKS INCLUDE CAPSULAR CONTRACTURE IN WHICH SCAR TISSUE TIGHTENS AROUND THE IMPLANT CAUSING UNNATURAL FIRMNESS AND PAIN CALCIUM DEPOSITS IN THE TISSUE AROUND THE IMPLANT WHICH ALSO CAUSE HARDENING AND PAIN RUPTURE OF THE IMPLANT WHICH REQUIRES REMOVAL OF THE DEVICE AND INTERFERENCE WITH MAMMOGRAPHY THERE ALSO ARE SEVERAL UNANSWERED QUESTIONS INCLUDING WHETHER THE DEVICES MIGHT CAUSE AUTOIMMUNE DISEASES SUCH AS LUPUS AND WHETHER THEY INCREASE THE RISK OF CANCER SEPARATELY THE FDA SAID IT IS ALLOWING CERTAIN MULTIPLE SCLEROSIS PATIENTS TO GET ACCESS TO AN EXPERIMENTAL DRUG COPOLYMER 1 WHICH IS PRODUCED BY LEMMON CO OF SELLERSVILLE PA AND TEVA PHARMACEUTICAL INDUSTRIES LTD OF ISRAEL CURRENTLY THERE IS NO MARKETED PRODUCT APPROVED SPECIFICALLY FOR TREATING THIS DISEASE WHICH AFFECTS THE CENTRAL NERVOUS SYSTEM SERIOUSLY AFFLICTED PATIENTS EXPERIENCE EPISODES OF WEAKNESS CLUMSINESS AND VISUAL DISTURBANCES FROM WHICH THEY MAY RECOVER ONLY PARTLY SOME PEOPLE BECOME SERIOUSLY DISABLED 9301060071 930106 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 5/8 HIGH 3 LOW 3 1/4 NEAR CLOSING BID 3 3/8 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 336 30 DAYS 335 60 DAYS 336 90 DAYS CERTIFICATES OF DEPOSIT 280 ONE MONTH 285 TWO MONTHS 288 THREE MONTHS 299 SIX MONTHS 325 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 345 SIX MONTHS BANKERS ACCEPTANCES 313 30 DAYS 313 60 DAYS 316 90 DAYS 321 120 DAYS 327 150 DAYS 329 180 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 7/16 3 5/16 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 7/16 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 775 60 DAYS 785 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 774 60 DAYS 783 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 9301060070 930106 BUSINESS BRIEF BOEING CO UNIT TO PAY 1150000 FINE FOR ENVIRONMENTAL VIOLATION A BOEING CO DIVISION SAID IT AGREED TO PAY 1150000 IN FINES FOR 14 VIOLATIONS OF FEDERAL ENVIRONMENTAL RULES AT A PHILADELPHIA HELICOPTERPLANT SITE UNDER AN AGREEMENT WITH THE ENVIRONMENTAL PROTECTION AGENCY THE HELICOPTERS DIVISION OF BOEING'S DEFENSE & SPACE GROUP WILL PROVIDE 350000 TO A PRIVATE ENVIRONMENTAL EDUCATION INSTITUTE IN PHILADELPHIA THE FUNDING IS TO BE USED TO PROMOTE POLLUTION PREVENTION AND TO ASSIST SMALL BUSINESSES WITH HAZARDOUSWASTE REDUCTION MOST OF THE VIOLATIONS INVOLVED IMPROPER RECORDKEEPING MAINTENANCE AND INSPECTION NONETHELESS SAID AN EPA SPOKESWOMAN THE AGENCY REGARDS THE INFRACTIONS AS SERIOUS BECAUSE THERE'S A POTENTIAL FOR DISASTER WHEN THEY'RE NOT FOLLOWED 9301060068 930106 LAW LEGAL BEAT NONLAWYERS LEADING LAW FIRMS GASTON & SNOW CASE SHOWS A SHIFT BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL THE NOTION THAT THE BEST WAY TO MANAGE A BIG LAW FIRM IS TO LET A CORPORATE EXECUTIVE TAKE CHARGE IS FALLING OUT OF FAVOR AND ONE OF THE MOST TOUTED EXAMPLES AT GASTON & SNOW IN BOSTON NOW HAS BEEN MARRED BY ALLEGATIONS OF MANAGERIAL MALFEASANCE A DECADE AGO MANAGEMENT GURUS PITCHED CEOLIKE BUSINESS EXPERTISE AS THE TONIC FOR WHAT AILED RAPIDLY GROWING YET DISORGANIZED LAW FIRMS MANY OF WHICH HAD OPENED OFFICES OVERSEAS AND EMPLOYED HUNDREDS OF SUPPORT STAFF WORKERS MANY LAW FIRMS WATCHED WITH INTEREST AS A FEW INNOVATIVE FIRMS EXPERIMENTED BY TURNING THE REINS OVER TO OUTSIDERS BUT THESE DAYS EVEN THE LAW FIRMS WILLING TO GIVE MORE POWER TO NONLAWYER MANAGERS ARE OPTING FOR A COMPROMISE PAIRING A MANAGING PARTNER FROM THE FIRM WITH A BUSINESS EXECUTIVE FROM OUTSIDE THAT APPROACH FREES THE MANAGING PARTNER TO CONCENTRATE ON MORE TRADITIONAL PARTNERSHIP MATTERS SUCH AS SUPERVISING ATTORNEYS OVERSEEING CASES AND WOOING CLIENTS MEANWHILE THE NONLAWYER MANAGER USUALLY CALLED AN EXECUTIVE DIRECTOR ACTS AS A CHIEF OPERATING OFFICER OVERSEEING THE BUDGET AND NONLAWYER STAFF AND POLICING BILL COLLECTING FOR INSTANCE HANDING OVER AUTHORITY OF PARTNERSHIP AND CLIENT MATTERS TO A NONLAWYER MANY SAY INVITES DISASTER NONLAWYER MANAGERS FOR INSTANCE MAY BE MORE LIKELY TO PUT BUSINESS OBJECTIVES AHEAD OF LAWYERS' ETHICAL CONCERNS SUCH AS CLIENT CONFLICTS SOME LAWYERS SAY YOU SOW THE SEEDS OF FAILURE WHEN YOU MAKE A LAYPERSON NO MATTER HOW TALENTED THE PERSON IN CHARGE OF OVERSIGHT AND EVALUATION OF THE PROFESSIONAL SAID RICHARD MACKEY THE NONLAWYER EXECUTIVE DIRECTOR AT VENABLE BAETJER & HOWARD A BALTIMORE LAW FIRM WHICH HAS A PARTNER AT THE FIRM AS A COMANAGER QUESTIONS ABOUT THE MANAGEMENT OF GASTON & SNOW WHICH CLOSED AND SOUGHT BANKRUPTCYCOURT PROTECTION IN 1991 ARE RAISED IN A LAWSUIT FILED LAST MONTH BY THE BANKRUPTCY TRUSTEE FOR THE LAW FIRM IN THE MID1980S GASTON & SNOW WAS PRAISED FOR EMBRACING THE NEW STYLE OF MANAGEMENT BUT THE TRUSTEE HARRISON J GOLDIN ALLEGED IN THE SUIT THAT THE LAW FIRM WAS DRIVEN UNDER LARGELY BY THE EXECUTIVE BROUGHT IN TO IMPROVE ITS MANAGEMENT RICHARD SANTAGATI A FORMER CHAIRMAN AND PRESIDENT OF NYNEX BUSINESS INFORMATION SYSTEM CO IN NEW YORK JOINED THE FIRM IN 1986 AS CHIEF EXECUTIVE OFFICER TO WHIP IT INTO A MORE DISCIPLINED BUSINESS OPERATION AS ONE OF THE FIRST NONLAWYERS TO RUN A MAJOR FIRM MR SANTAGATI'S APPOINTMENT WAS CONSIDERED A WATERSHED IN THE EVOLUTION OF LAW FIRMS FROM PROFESSIONAL AFFILIATIONS TO BOTTOMLINE DRIVEN BUSINESSES WITHIN MONTHS MR SANTAGATI WAS PRAISED BY GASTON & SNOW PARTNERS FOR AMONG OTHER THINGS STREAMLINING MANAGEMENT DECISIONMAKING AND RENEGOTIATING COMPUTER AND TELEPHONE CONTRACTS BUT MR SANTAGATI LEFT THE FIRM WHILE IT WAS FLOUNDERING IN SEPTEMBER 1991 ONLY A FEW MONTHS BEFORE IT WENT UNDER WEIGHED DOWN BY 56 MILLION OF DEBT MR SANTAGATI DECLINED TO COMMENT AND HIS ATTORNEY MORRIS M GOLDINGS A PARTNER AT MAHONEY HAWKES & GOLDINGS IN BOSTON COULDN'T BE REACHED FOR COMMENT BUT THE NATIONAL LAW JOURNAL A PUBLICATION FOR LAWYERS RECENTLY QUOTED MR GOLDINGS AS SAYING THAT HIS CLIENT WAS BEING MADE THE SCAPEGOAT AND THAT MR SANTAGATI IS SEEKING 200000 IN UNPAID SALARY FROM THE LAW FIRM DAVID MCINTOSH ALSO A NONLAWYER CEO AT THE WEST PALM BEACH FLA FIRM GUNSTER YOAKLEY CRISER & STEWART SAID TRUST CULTIVATED BY CONSTANT COMMUNICATION WITH THE ATTORNEYS IS CRITICAL TO SUCCEEDING AS A NONLAWYER MANAGER YOU CAN'T BE AN AUTOCRAT HE SAID LAW FIRM MANAGEMENT CONSULTANTS SAY THAT MANY MAJOR LAW FIRMS REMAINED SKEPTICAL ALL ALONG OF THE NONLAWYER MANAGEMENT ARRANGEMENT LAWYERS TEND TO HAVE LITTLE RESPECT FOR NONLAWYERS SAID WARD BOWER LAW FIRM MANAGEMENT CONSULTANT WITH ALTMAN WEIL PENSA IN NEWTOWN SQUARE PA WHICH MAKES IT DIFFICULT FOR NONLAWYERS TO EXERCISE AUTHORITY JOEL F HENNING A CONSULTANT WITH HILDEBRANDT INC SAID ANOTHER CLASH ARISES WHEN NONLAWYERS TRY TO IMPOSE THE CORPORATE MODEL ON A NONCORPORATE STRUCTURE A LAW FIRM IS BY DEFINITION INEFFICIENT NONHIERARCHAL DISORGANIZED AND SOMEBODY TRAINED AT HARVARD BUSINESS SCHOOL IS HEADING FOR A NERVOUS BREAKDOWN WHEN TRYING TO REIN PARTNERS IN A FLORIDA APPEALS COURT HAS SIDED WITH DOCTORS AND AGAINST HEALTH MAINTENANCE ORGANIZATIONS IN A CASE INVOLVING A DOCTOR'S FREEDOM TO TAKE PATIENTS WITH HIM WHEN HE SWITCHES HMOS THE STATE COURT REFUSED TO ENFORCE A CONTRACT THAT PENALIZED A DOCTOR FOR TAKING PATIENTS AWAY FROM AN HMO WITH WHICH HE HAD BEEN AFFILIATED HMOS KEEP EXPENSES AND PREMIUMS DOWN BY REFERRING SUBSCRIBERS ONLY TO AFFILIATED PHYSICIANS WHO IN TURN ARE PAID A FLAT FEE BY THE HMO IN THE FLORIDA CASE THE CONTRACT BETWEEN THE DOCTOR IRA JACOBSON AND HIS FORMER HMO HUMANA MEDICAL PLAN INC REQUIRED THAT IF DR JACOBSON LEFT FOR A COMPETING ORGANIZATION HE WOULD HAVE TO PAY HUMANA 700 FOR EACH OF HIS PATIENTS WHO THEN JOINED THE COMPETITOR'S PLAN SHORTLY AFTER THE CONTRACT ENDED IN 1990 DR JACOBSON AFFILIATED WITH ANOTHER HMO TAKING 167 OF HIS PATIENTS WITH HIM HUMANA THEN SOUGHT TO ENFORCE THE 700PERPATIENT AGREEMENT BUT IN LANGUAGE THAT DESCRIBES THE RELATIONSHIP BETWEEN PHYSICIANS AND PATIENTS AS NEARLY SACROSANCT THE COURT THREW OUT THE CLAUSE SAYING IT IMPROPERLY INTERFERES WITH PATIENTS' RIGHTS TO CHOOSE THEIR DOCTORS PATIENTS ARE NOT THE PROPERTY OR CHATTEL OF AN HMO THE COURT SAID IN ITS OPINION WE BELIEVE THE PUBLIC POLICY OF THIS STATE IS VIOLATED WHEN THE BUSINESS RELATIONSHIP AN HMO HAS WITH ITS AFFILIATED DOCTORS INTERFERES WITH SOMETHING AS FUNDAMENTAL AS THE DOCTOR/PATIENT RELATIONSHIP WHO'S NEWS DANTE B FASCELL FORMER CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE JOINED FINE JACOBSON SCHWARTZ NASH & BLOCK AS COUNSEL A NONPARTNER POSITION MR FASCELL WHO RETIRED AS A CONGRESSMAN FROM FLORIDA WITH THE END OF HIS TERM LAST WEEK WILL ADVISE THE MIAMI LAW FIRM'S CLIENTS ON INTERNATIONAL LAW AND COMMERCE HE WON'T LOBBY THE US GOVERNMENT OR REPRESENT FOREIGN GOVERNMENTS EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9301060067 930106 ANDREW'S TOLL AS INSURANCE COSTS FROM HURRICANE SOAR HIGHER RATES LOOM FIRMS BEGIN TO CURB COVERAGE FOR HOMES ALONG COASTS SEEK GOVERNMENT RELIEF LOSSES MAY TOP 16 BILLION BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI IT HAS BEEN FOUR MONTHS SINCE THE NIGHT ANGELA HUNTLEY AND HER FAMILY CROUCHED IN A CLOSET AS HURRICANE ANDREW RIPPED THEIR HOME APART BUT FROM THE LOOKS OF HER HOUSE AND DOZENS AROUND IT IT COULD HAVE BEEN YESTERDAY THEY ARE STILL A SHAMBLES AWAITING BUILDERS WHO HAVE BEEN TOO BUSY TO GET TO THEM THERE'S NO COMMUNITY HERE MRS HUNTLEY SAYS WITH A SIGH STATE FARM MUTUAL AUTOMOBILE INSURANCE CO THE HUNTLEYS' INSURER SHARES HER REGRETS WHILE THE HUNTLEYS WAIT TO MOVE BACK STATE FARM IS DOLING OUT 530 A MONTH FOR THEM TO RENT AN APARTMENT THE INSURANCE INDUSTRY ORIGINALLY EXPECTED TO LOSE 73 BILLION ON THE STORM IN FLORIDA NOW CONSTRUCTION DELAYS AND OTHER PROBLEMS HAVE PUSHED ESTIMATES AS HIGH AS 165 BILLION IN FACT THE DIFFERENCE BETWEEN THE EARLY AND THE CURRENT ESTIMATES IS TWICE THE SIZE OF THE PREVIOUS RECORD DISASTER HURRICANE HUGO IN 1989 INSURERS HAVE WRITTEN SO MANY CHECKS TO REPAIR 125000 DAMAGED HOMES FINANCE LIVING EXPENSES AND REPLACE FURNISHINGS APPLIANCES AND CLOTHES THAT THEY'RE GETTING CREDIT FOR LIFTING FLORIDA OUT OF THE RECESSION THIS HAS BEEN ECONOMICALLY PHENOMENAL SAYS MICHAEL CANNON A REALESTATE APPRAISER THE WHOLE NATION WILL ALSO FEEL THE REVERBERATIONS OF THE ENORMOUS PAYOUT FOR YEARS TO COME ACCORDING TO EXPERTS INSURERS WILL SOON BEGIN RAISING RATES ON ALL TYPES OF PROPERTY INSURANCE AND WILL CONTINUE DOING SO THROUGH AT LEAST 1995 EVEN AUTOINSURANCE BUYERS ARE EXPECTED TO FOOT PART OF THE BILL AS INSURERS SEEKING TO REPLENISH THEIR CAPITAL BECOME LESS COMPETITIVE ON RATES THE STORM HAS REALLY WOKEN UP THE INDUSTRY SAYS WILLIAM CAVANAGH AN INSURANCE ANALYST AT STANDARD & POOR'S CORP IN ADDITION INSURERS WILL SEEK LEGISLATIVE HELP IN LIMITING THEIR LOSSES ON BIG STORMS AND HAVE BEGUN TO PULL BACK FROM WRITING POLICIES IN COASTAL AREAS FOR EXAMPLE TRAVELERS CORP RECENTLY SAID IT WILL STOP WRITING NEW HOMEOWNER POLICIES IN MUCH OF THE NEW YORK METROPOLITAN AREA THERE ARE A LOT OF OTHERS THAT WILL COME FORWARD WITH RESTRICTIONS SAYS JOHN SNYDER A SENIOR VICE PRESIDENT AT AM BEST CO THE INSURANCE RATING AGENCY SHORTLY AFTER ANDREW MADE LANDFALL THE MORNING OF AUG 24 MICHAEL CAULFIELD RUSHED TO ESTIMATE HOW MUCH HIS COMPANY WOULD LOSE ON THE STORM MR CAULFIELD PRESIDENT OF THE PROPERTY AND CASUALTY UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA FED SOME NUMBERS INTO A COMPUTER MODEL AND CAME UP WITH 250 MILLION THREE WEEKS LATER AN EMBARRASSED PRUDENTIAL RAISED ITS ESTIMATE TO MORE THAN 1 BILLION AS FOR THE COMPUTER MODEL MR CAULFIELD SAYS HE THREW IT OUT THE WINDOW IT WASN'T DESIGNED FOR A STORM THIS BAD BUT MORE THAN POOR MODELS EXPLAIN THE EVERRISING LOSSES ON THE STORM ALSO AT WORK IS THE INFLATION SPARKED BY HUGE DEMAND FOR MATERIALS AND LABOR WORRIED ABOUT PRICE GOUGING FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER DREW UP GUIDELINES ON WHAT BUILDERS AND SUPPLIERS SHOULD CHARGE MIKE KISH WHO HELPS RUN THE FLORIDA CLAIMS OPERATION FOR STATE FARM ESTIMATES THE HIGHER PRICES HAVE RAISED BY A THIRD THE COST OF REBUILDING A HOME AND SAYS THEY SHOW NO SIGNS OF RETREATING AS TIME GOES BY YOU WOULD THINK PRICES WOULD COME DOWN HE SAYS BUT THEY HAVEN'T ALTHOUGH INSURANCE COMPANIES SAY THEY ARE RESIGNED TO HIGHER COSTS HOMEOWNERS COMPLAIN THAT INSURERS ARE RESISTING PAYING THE BILLS STATE FARM HAS GIVEN A CASH SETTLEMENT TO GUNILLA SJOGREN WHOSE HOME LOST MOST OF ITS ROOF BUT HER CONTRACTOR SAYS A NEW ROOF WILL COST 18000 NEARLY 30 MORE THAN STATE FARM SAYS IT SHOULD COST UNTIL THE DISPUTE IS RESOLVED SHE WILL CONTINUE TO LIVE IN A RENTED TRAILER PAID FOR BY STATE FARM WITH HER HUSBAND TWO DOGS AND A CAT WHILE GENERALLY PLEASED WITH THE BLOOMINGTON ILL INSURER SHE SAYS SHE IS BEGINNING TO LOSE HER PATIENCE OVER THE ROOF DISPUTE HELPING CONTAIN THE SURGE IN COSTS A BIT IS AN INFLUX OF CONTRACTORS AFTER THE STORM AN ARMY OF PICKUP TRUCKS WITH ALABAMA AND GEORGIA LICENSE PLATES DESCENDED ON SOUTH FLORIDA AS FAST AS THE TELEVISION CREWS COMPLETE WITH WORKERS AND LUMBER THE NEWLY ARRIVED BUILDERS ARE SCOURING BATTERED NEIGHBORHOODS AND ADVERTISING THEIR SERVICES WITH CARDBOARD SIGNS TACKED ON TELEPHONE POLES ALTHOUGH MOST OF THE OUTOFSTATE BUILDERS ARE LICENSED SOME HAVE GIVEN THE GROUP SUCH A REPUTATION FOR SHODDY WORK AND UNRULY BEHAVIOR THAT MANY HOMEOWNERS AVOID THEM CLAUDINE DEARRIGUNAGA A HOMEOWNER WITH MAJOR DAMAGE SAYS SHE HAS BEEN APPROACHED BY DOZENS OF UNFAMILIAR BUILDERS BUT WOULDN'T DARE TRY ONE COMPLAINING OF OUTOFTOWNERS WHO ARE DRUNK AT 830 IN THE MORNING I WOULD RATHER HAVE SOMEONE FROM FLORIDA REBUILD MY HOUSE SHE SAYS EVEN IF IT TAKES ME AN EXTRA FOUR MONTHS OTHER STORM VICTIMS HAVE BEEN SLOW TO REBUILD FOR FEAR OF CON ARTISTS STORIES ABOUND OF CONTRACTORS WHO GET PAID IN ADVANCE AND THEN DISAPPEAR OTHER HOMEOWNERS WORRY ABOUT BEING THE FIRST ON THEIR BLOCK TO MOVE BACK YOU HAVE TO CONVINCE PEOPLE THAT WHERE THEY LIVED WILL AGAIN BE A FLOURISHING COMMUNITY SAYS A SPOKESMAN FOR SEARS ROEBUCK & CO'S ALLSTATE INSURANCE UNIT FOR ALL THE DAMAGE ANDREW CAUSED IT COULD HAVE BEEN WORSE THE STORM MISSED DOWNTOWN MIAMI BY ONLY A FEW MILES INSURERS USED TO THINK THAT NO STORM COULD EVER CAUSE MORE THAN 10 BILLION IN DAMAGE NOW AS LOSS ESTIMATES ON ANDREW CLIMB UNIVERSITY PROFESSORS ARE SUGGESTING THAT ONE SWEEPING ALONG THE EASTERN SEABOARD MIGHT CAUSE 40 BILLION IN INSURED LOSSES NO BIG INSURER HAS FAILED BECAUSE OF ANDREW BUT LOSSES FROM SUCH A SUPER CATASTROPHE WOULD SURELY TOPPLE SOME GIANTS THAT IS REALLY TERRIFYING EVERYBODY SAYS STEVEN BOLLAND A REINSURANCE BROKER AT GIL & ROSER OF NEW YORK NERVOUS ABOUT THEIR EXPOSURE INSURERS ARE REVIEWING THEIR RISKS IN COASTAL AREAS FEW WILL ABANDON THE MARKET ENTIRELY IT IS TOO LARGE AND TOO LUCRATIVE FOR THAT THE NEW YORK METROPOLITAN AREA ALONE IS HOME TO ABOUT 7 OF THE US POPULATION BUT INSURERS CAN MOVE TO LIMIT THEIR LOSSES ONE WAY IS TO DO WHAT TRAVELERS DID AFTER STUDYING WHERE IT WAS EXPOSED TRAVELERS FOUND THAT IT WROTE TOO MUCH BUSINESS ON THE NEW YORK AND CONNECTICUT COASTS AN AREA IT LIBERALLY DEFINES AS INCLUDING ALL OF LONG ISLAND THREE OF NEW YORK CITY'S FIVE BOROUGHS AND MUCH OF CONNECTICUT BY REFUSING TO WRITE NEW POLICIES ON HOMES THERE TRAVELERS HOPES TO DIVERSIFY ITS RISKS AND NOT GET CAUGHT WITH THE EXCESSIVE CONCENTRATION THAT HAS CRUSHED SIX SMALL INSURERS IN FLORIDA TRAVELERS ALSO SLASHED SALES COMMISSIONS HOPING TO PERSUADE AGENTS TO RENEW FEWER POLICIES TRAVELERS IS THE ONLY MAJOR COMPANY TO ANNOUNCE CUTBACKS OUTSIDE FLORIDA BUT OTHERS INCLUDING PRUDENTIAL AND STATE FARM SAY THEY ARE STUDYING THEIR OPTIONS WE WILL STAY IN ALL AREAS IN SOME FASHION BUT CONCEIVABLY IMPOSE RESTRICTIONS IN SOME SAYS DEAN FLESNER A STATE FARM VICE PRESIDENT OFFICIALS IN SOME STATES WORRY ABOUT AN INSURANCE SHORTAGE OBVIOUSLY IF OTHERS DO WHAT TRAVELERS DID IT WILL CREATE PROBLEMS SAYS STEWART KEIR AN OFFICIAL WITH THE NEW YORK DEPARTMENT OF INSURANCE A SHORTAGE HAS ALREADY HIT FLORIDA IN RESPONSE THE STATE IS NOW SELLING HOMEOWNERS' INSURANCE TO PEOPLE WHO CAN'T FIND COVERAGE IN THE COMMERCIAL MARKET AM BEST ESTIMATES THAT 500000 FLORIDA HOMEOWNERS WILL EVENTUALLY BUY INSURANCE FROM THE STATE ANOTHER WAY INSURERS CAN PROTECT THEMSELVES IS BY RAISING PREMIUMS TO INCREASE THEIR PROFITS AND THEIR ABILITY TO ABSORB LOSSES SO FAR NO INSURER HAS SOUGHT HIGHER RATES BECAUSE OF ANDREW BUT INCREASES ARE COMING ANALYSTS SAY BEGINNING WITH POLICIES FOR HOMEOWNERS IN EAST COAST OR GULF COAST STATES HOMEOWNER RATES MUST BE APPROVED BY STATE REGULATORS AND POLITICAL PRESSURE IS EXPECTED TO KEEP THE INCREASES MODEST NO COMPANY WOULD WANT TO EXPOSE ITSELF TO THE POLITICAL FLAK OF ASKING FOR A 25 RATE INCREASE AM BEST'S MR SNYDER SAYS INSTEAD HE SAYS THE COMPANIES MIGHT SEEK SINGLEDIGIT INCREASES OVER THREE CONSECUTIVE YEARS THE STOCK MARKET ANTICIPATES HIGHER RATES ON ALL TYPES OF PROPERTY INSURANCE AS A RESULT PROPERTY/CASUALTY STOCKS HAVE RISEN 223 ON AVERAGE SINCE THE HURRICANE EVEN AUTOINSURANCE RATES ARE LIKELY TO BE AFFECTED ALTHOUGH SUCH POLICIES THEORETICALLY SHOULDN'T HAVE MUCH TO DO WITH HURRICANES THAT'S BECAUSE STATE FARM AND ALLSTATE THE DOMINANT PLAYERS IN BOTH HOME AND CAR INSURANCE ARE EXPECTED TO BECOME TEMPORARILY LESS COMPETITIVE THE REASON STATE FARM LOST 35 BILLION AND ALLSTATE 25 BILLION IN THE HURRICANE ANDREW TOOK A HUGE DENT OUT OF THOSE COMPANIES SAYS WILLIAM YANKUS AN ANALYST AT CONNING & CO IN HARTFORD CONN IT PREVENTS THEM FROM BEING AGGRESSIVE ON PRICING HOWEVER STATE FARM DENIES BEING LESS COMPETITIVE AND SAYS AUTO RATES ARE SET INDEPENDENTLY OF HOMEOWNER RATES ALLSTATE DECLINES TO COMMENT INSURERS ALSO WANT GOVERNMENT HELP SUCH AS TOUGHER BUILDING CODES TO REDUCE THEIR EXPOSURE DRIVING DOWN THE FLORIDA TURNPIKE ONE SEES HOUSE AFTER HOUSE WITH THE ROOF TORN OFF IN KENDALL LAKES A COMMUNITY SOUTH OF MIAMI THE DAMAGE IS SO WIDESPREAD THAT MOSQUITOCONTROL INSPECTORS LOOK FOR WATER STANDING IN SINKS AND BATHTUBS OF ABANDONED HOMES FURTHER SOUTH IN HARDHIT HOMESTEAD LEVELED CONDOMINIUMS AWAIT DEMOLITION A DADE COUNTY GRAND JURY RECENTLY CONCLUDED THAT MUCH OF THE DAMAGE COULD HAVE BEEN PREVENTED WITH TIGHTER BUILDING CODES AND STRICTER CODE ENFORCEMENT THE OPENED GUTS OF THOUSANDS OF HOMES EXPOSED COUNTLESS VIOLATIONS THE JURY'S REPORT SAYS WE HAVE FOOLISHLY BEEN A COMMUNITY DEPENDENT ON THE BUILDING INDUSTRY TO POLICE ITSELF BUILDERS DISAGREE THE REAL CULPRIT WAS AN EXTRAORDINARY STORM SAYS ERNEST MILLER PRESIDENT OF ARVIDA CO A MAJOR HOME BUILDER BASED IN BOCA RATON INSURERS HAVE LONG URGED TOUGHER OVERSIGHT BUT THEIR EFFORTS FIZZLED BECAUSE LOCAL GOVERNMENTS SLIGHT THEIR BUILDING DEPARTMENTS STATE FARM'S MR FLESNER CITES A RECENT STUDY THAT SHOWED 45 OF BUILDING INSPECTORS FLUNKED A TEST ON THEIR OWN BUILDING CODES NOW INSURERS MIGHT BEGIN CHARGING MORE FOR POLICIES SOLD IN COMMUNITIES WITH WEAK BUILDING DEPARTMENTS THERE IS ALSO TALK ABOUT TOUGHER PENALTIES ON CONTRACTORS THAT VIOLATE THE CODES FINALLY INSURERS ARE SEEKING TO LIMIT THEIR LOSSES BY GETTING HELP FROM WASHINGTON THEY HAVE LONG SOUGHT A FEDERAL FUND THAT WOULD CAP THEIR COSTS ON A BIG EARTHQUAKE AN EVENT THEY FEAR COULD OVERWHELM THEM FOLLOWING ANDREW A LOT OF COMPANIES BECAME CONCERNED THAT A MAJOR HURRICANE COULD HAVE THE SAME IMPACT SAYS FRANKLIN NUTTER PRESIDENT OF THE REINSURANCE ASSOCIATION OF AMERICA LEGISLATION IS EXPECTED TO BE PROPOSED THIS YEAR ALTHOUGH SUCH A FUND WOULD ULTIMATELY GIVE POLICYHOLDERS GREATER ASSURANCE OF PROTECTION THEY AND THE INSURERS' STOCKHOLDERS WOULD BEAR THE COST UNDER THE PROPOSAL INSURERS RATHER THAN TAXPAYERS WOULD FINANCE THE PROGRAM 9301060066 930106 BUSINESS BRIEF ELECTRONIC ASSOCIATES INC FIRM RESTRUCTURES LOAN PACT WITH ITS PRIME LENDER ELECTRONIC ASSOCIATES INC A DIVERSIFIED ELECTRONICSSERVICE COMPANY SAID IT RESTRUCTURED A LOAN AGREEMENT WITH ITS PRINCIPAL LENDER MELLON BANK CORP ELECTRONIC ASSOCIATES WHICH LAST MONTH SAID IT WAS OUT OF COMPLIANCE WITH ITS MELLON BANK AGREEMENT SAID THAT MELLON AGREED THROUGH FEB 28 NOT TO EXERCISE REMEDIES AVAILABLE TO IT RELATING TO THE NONCOMPLIANCE THE COMPANY IN WEST LONG BRANCH NJ WHICH HAS BEEN PINCHED BY DEFERRALS OF SHIPMENTS BY CUSTOMERS ALSO SAID MELLON AGREED TO ADDITIONAL ADVANCES UNDER A REVOLVING CREDIT LINE BASED ON A FORMULA TIED TO CERTAIN ACCOUNTS RECEIVABLE AND INVENTORY NO ADDITIONAL ADVANCES WILL BE MADE UNDER THE COMPANY'S EQUIPMENT CREDIT LINE THE COMPANY SAID THE AMOUNT OF CREDIT AVAILABLE IS CAPPED AT 44 MILLION THROUGH JAN 14 AND DECLINES TO 39 MILLION BY FEB 5 THE AMOUNTS OUTSTANDING UNDER THE REVOLVING CREDIT ARRANGEMENT AND THE FULL CREDIT FACILITY WERE ABOUT 39 MILLION AND 57 MILLION RESPECTIVELY AS OF DEC 31 THE NEW AGREEMENT REQUIRES THAT THE COMPANY REPAY MELLON MORE THAN 49 MILLION BY FEB 28 9301060065 930106 BUSINESS BRIEF BIRTCHER MEDICAL SYSTEMS INC COMPANY TO REPORT LOSS FOR PERIOD ENDED DEC 31 BIRTCHER MEDICAL SYSTEMS INC IRVINE CALIF SAID IT EXPECTS TO REPORT A LOSS ON LOWERTHANEXPECTED SALES OF ABOUT 11 MILLION IN ITS SECOND QUARTER ENDED DEC 31 IN THE YEAREARLIER QUARTER THE MAKER OF SURGICAL PRODUCTS AND RELATED EQUIPMENT REPORTED A NET LOSS OF 21 MILLION OR 22 CENTS A SHARE SALES WERE 141 MILLION THE LATEST QUARTER'S NET LOSS WILL BE SMALLER THAN THE YEARAGO PERIOD WHICH INCLUDED A 46 MILLION CHARGE SAID DANIEL P WHELAN CHIEF FINANCIAL OFFICER EXCLUDING THE CHARGE PROFIT IN THAT QUARTER WAS 13 MILLION BY CONTRAST THE COMPANY WILL REPORT AN OPERATING LOSS IN THE LATEST QUARTER HE SAID BIRTCHER BLAMED ITS POOR RESULTS ON SEVERAL FACTORS INCLUDING INTENSE COMPETITION AND REDUCED PROFIT MARGINS CAUSED BY LOWERTHANANTICIPATED DEMAND FOR ENDOSCOPIC EQUIPMENT AND RELATED SURGICAL INSTRUMENTS BIRTCHER SHARES WERE QUOTED LATE YESTERDAY AT 6 DOWN 1375 IN NATIONAL OVERTHECOUNTER TRADING 9301060064 930106 WHO'S NEWS BARR'S COHEN BECOMES CHAIRMAN DOWNEY IS NAMED PRESIDENT POMONA NY BARR LABORATORIES INC SAID ITS FOUNDER EDWIN A COHEN WAS NAMED CHAIRMAN AND BRUCE DOWNEY WHO HAD BEEN BARR'S OUTSIDE LEGAL COUNSEL WAS NAMED PRESIDENT A DIRECTOR AND TO THE NEW POST OF CHIEF OPERATING OFFICER MR COHEN 60 YEARS OLD HAD BEEN PRESIDENT HE REMAINS CHIEF EXECUTIVE OFFICER OF THE GENERIC DRUG COMPANY MR COHEN SUCCEEDS BERNARD SHERMAN 50 AS CHAIRMAN MR SHERMAN HOLDS MORE THAN 60 OF BARR AND IS PRESIDENT AND CHIEF EXECUTIVE OF APOTEX INC A CANADIAN MAKER OF GENERIC AND BRAND NAME DRUGS A SPOKESMAN FOR BARR SAID MR SHERMAN WANTED TO MAKE WAY FOR MR COHEN AND THE CHANGES WERE VOLUNTARY HE SAID MR COHEN WOULD CONCENTRATE ON STRATEGIC PLANNING NEW PRODUCTS AND MARKETING AND MR DOWNEY WOULD BE MORE RESPONSIBLE FOR DAYTODAY OPERATIONS IN ADDITION MR DOWNEY WHO WAS A SENIOR PARTNER IN THE WASHINGTON LAW FIRM OF WINSTON & STRAWN ALSO WILL GIVE PRIORITY TO RESOLVING A DISPUTE WITH THE FOOD AND DRUG ADMINISTRATION AND TO NORMALIZING RELATIONS WITH THE REGULATORY AGENCY THE FDA HAS A CASE AGAINST BARR SEEKING TO BLOCK IT FROM MAKING 15 OF ITS PRODUCTS THE AGENCY HAS CHARGED THAT BARR USED CONTAMINATED WATER MISLABELED DRUGS AND COMMITTED OTHER UNSAFE PRACTICES BARR DENIES ANY SERIOUS BREACH OF SAFETY PROCEDURES 9301060063 930106 MARKETING & MEDIA JOAN RIVERS TO SELL REGAL HER MARKETING BUSINESSES NEW YORK CAN WE TALK JOAN RIVERS IS GOING CORPORATE THE GABBY COMEDIAN TALKSHOW HOSTESS AND HOMESHOPPING TELEVISION QUEEN IS SELLING HER MARKETING BUSINESSES TO REGAL COMMUNICATIONS CORP ONE OF THE NATION'S LARGEST MAKERS OF INFOMERCIALS FOR ABOUT 14 MILLION IN REGAL STOCK REGAL IN FORT WASHINGTON PA SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE JOAN RIVERS PRODUCTS INC AND MELISSASMOM INC A RELATED COMPANY AS PART OF THE TRANSACTION REGAL WILL ISSUE TO MS RIVERS 27 MILLION SHARES OF UNREGISTERED COMMON STOCK GIVING HER ABOUT A 13 STAKE AND MAKING HER ONE OF REGAL'S LARGEST HOLDERS THIS WILL GIVE US THE BASE AND THE CLOUT TO REALLY EXPAND MS RIVERS SAID IN AN INTERVIEW AMONG NEW PRODUCTS SHE IS DEVELOPING CAKES AND BREATH MINTS REGAL WILL RECEIVE EXCLUSIVE RIGHTS FOR 10 YEARS TO CREATE AND MARKET JEWELRY CLOTHES COSMETICS AND CERTAIN OTHER PRODUCTS BEARING MS RIVERS'S NAME AND LIKENESS THE AGREEMENT INCLUDES RIGHTS TO SELL PRODUCTS THROUGH THE QVC HOMESHOPPING TELEVISION NETWORK INFOMERCIALS AND OTHER PROGRAMMING TOM PILEGGI MS RIVERS'S FINANCIAL ADVISER PROJECTED THAT SALES OF HER PRODUCTS MIGHT EXCEED 50 MILLION THIS YEAR UP FROM AN ESTIMATED 25 MILLION IN 1992 9301060062 930106 REVIEW & OUTLOOK EDITORIAL STARTING OVER STARTII THE ARMS CONTROL AGREEMENT JUST SIGNED BY GEORGE BUSH AND BORIS YELTSIN IS BEING BILLED AS A HISTORIC TREATY THAT WILL NOT ONLY SECURE A LASTING FRIENDSHIP BETWEEN FORMER ENEMIES BUT WILL ADVANCE THE GOAL OF NONPROLIFERATION AS WELL PRESIDENT BUSH DECLARED THAT TODAY THE COLD WAR IS OVER IN FACT THE COLD WAR HAS BEEN OVER FOR SOME TIME SUPPLANTED BY A VERY NEW AND DIFFERENT STRATEGIC ORDER WHICH IS WHY STARTII IS AT BEST OF LIMITED IMPORTANCE AND AT WORST A SYMBOL OF US INABILITY TO ADAPT TO A MAJOR HISTORICAL DEVELOPMENT NOTHING COULD UNDERSCORE THIS MORE THAN THE POSITION OF UKRAINE CLOSED OUT OF SIGNIFICANT NEGOTIATIONS UKRAINE HAS BEEN TREATED IN THE START TALKS AS A SATELLITE OF RUSSIA US POLICY MAKERS UNCOMFORTABLE WITH THE NOTION OF MANY COUNTRIES WHERE ONCE THERE WAS ONE ARE INSISTING THAT UKRAINE RETURN ITS NUCLEAR WEAPONS TO RUSSIAN SOIL UKRAINE DID TRANSFER ITS ARSENAL OF TACTICAL SHORTRANGE WEAPONS TO RUSSIA LAST MAY IN HOPES OF GAINING WESTERN FAVOR AND AID BUT DISPUTES WITH RUSSIA OVER OIL THE CRIMEA AND THE BLACK SEA FLEET HAVE STRAINED RELATIONS UKRAINE MAY NOT WANT THE BURDEN OF MAINTAINING A NUCLEAR ARSENAL BUT NEITHER IS IT KEEN TO TRANSFER TO MOSCOW SOME 176 LONGRANGE MISSILES CAPABLE OF CARRYING MULTIPLE WARHEADS PLUS 37 BOMBERS UKRAINIAN PRESIDENT LEONID KRAVCHUK FINESSED STARTII PRAISING THE USRUSSIAN INITIATIVE BUT ALSO CALLING FOR FULL NUCLEAR DISARMAMENT MEANWHILE HE IS IN NO HURRY TO BEND TO US DEMANDS THAT HE TRANSFER HIS NUKES TO RUSSIA NEITHER ARE THE OTHER TWO FORMER SOVIET REPUBLICS WITH STRATEGIC NUKES KAZAKHSTAN AND BELARUS AS RUSSIA'S NEAREST NEIGHBORS THEY AREN'T COMFORTED BY THE THOUGHT THAT IN 10 YEARS UNDER STARTII THE RUSSIANS STILL WILL HAVE 3500 MASSIVELY DESTRUCTIVE WARHEADS IF THEY FOLLOW US INSTRUCTIONS THEY WILL HAVE NONE THE BUSH ADMINISTRATION SEEMS TO THINK THAT CONCENTRATING ALL THE FORMER SOVIET NUKES INTO RUSSIA SOMEHOW ENSURES SAFETY BECAUSE THEY'LL BE COVERED BY A BILATERAL ARMS CONTROL AGREEMENT TO BE SURE NO ONE CAN FORETELL THE FUTURE OF UKRAINE OR KAZAKHSTAN BELARUS IS A LESSER PROBLEM BUT NEITHER CAN ANYONE FORESEE THE FUTURE OF RUSSIA SOME RUSSIAN PARLIAMENTARIANS WANT TO REBUILD THE RUSSIAN EMPIRE AND HOW MUCH EASIER THAT WOULD BE IF THE TWO LARGEST FORMER SOVIET REPUBLICS ON THEIR BORDERS HAD BEEN FORCED TO DISARM IT CAN BE ARGUED THAT FOUR NUCLEAR POWERS IN THE REGION WILL GIVE RISE TO A NEW KIND OF REGIONAL BALANCEOFPOWER POLITICS AND PRODUCE A HAIRRAISING MUTUALLY ASSURED DESTRUCTION MAD STANDOFF BETWEEN THESE NATIONS THAT MAY PROVE TO BE THE CASE BUT THERE IS NO ASSURANCE THAT THE REGION WILL BE MORE STABLE IF ALL THE NUCLEAR CAPABILITY LIES IN RUSSIAN HANDS QUITE THE CONTRARY SEEMS MORE LIKELY AND AT ANY RATE THOSE ARE PROBLEMS FOR THE FORMER SOVIET REPUBLICS TO WORK OUT AMONG THEMSELVES STARTII FITS WITHIN THE CONTEXT OF THE WARMER RELATIONS BETWEEN THE US AND RUSSIA AND THAT IS ALL TO THE GOOD BUT IT IGNORES THE MORE PRECARIOUS STRATEGIC BALANCE AMONG THE SOVIET SUCCESSOR STATES SHUTTING OUT THE OTHER THREE NUCLEAR REPUBLICS ON GROUNDS OF ANTIPROLIFERATION OVERLOOKS THE REALITY THAT THE REPUBLICS DIDN'T SEEK NUCLEAR STATUS THEY INHERITED IT THEY ARE BEING TREATED LIKE SOMETHING LESS THAN WHAT THEY CLAIM TO BE AND WHAT MOST OF THE WORLD ACCEPTS THEM AS INDEPENDENT NATIONS PART OF THE US FAILURE IS AN UNFOUNDED BELIEF IN THE EFFICACY OF ARMS AGREEMENTS AFTER SALTI THE USSR INTRODUCED FIVE NEW CLASSES OF SUBMARINELAUNCHED BALLISTIC MISSILES SLBMS AND FOUR NEW CLASSES OF LANDBASED MISSILES ANOTHER 6000 NUCLEAR WARHEADS JOINED THE SOVIET INVENTORY AFTER SALTII THE SOVIETS DEVELOPED BALLISTIC MISSILE DEFENSES BEYOND THOSE ALLOWED BY THE ABM TREATY DESPITE US AND SOVIET EFFORTS TO CONTROL PROLIFERATION ADMIRABLE AS THOSE EFFORTS MIGHT HAVE BEEN THE NUMBER OF NUCLEARCAPABLE STATES IN THE WORLD HAS NEARLY DOUBLED AND WILL LIKELY CONTINUE TO EXPAND THE WORLD OF COURSE WILL TAKE COMFORT IN THE MERE PROCESS OF DISMANTLING 15000 NUCLEAR WARHEADS WHICH STARTII ENVISIONS OVER THE CURIOUSLY LONGISH PERIOD OF 10 YEARS IT WOULD BE COMFORTING TO KNOW THAT ALL STRATEGIC WAPONS WERE UNDER SECURE COMMAND AND CONTROL SO THAT INDEPENDENT OPERATORS COULDN'T SELL THEM TO RENEGADE STATES FOR EXAMPLE AND IT IS MANIFESTLY IN THE US INTEREST TO HELP THE YELTSIN GOVERNMENT SUCCEED STILL US DIPLOMATS WOULD DO WELL TO TAKE A LOOK AT A MODERN MAP IN THAT VAST AREA THAT WAS ONCE CALLED THE SOVIET UNION THEY WILL SEE 15 NEW NATIONS NOTABLY ANY MEANINGFUL STRATEGIC ARMS AGREEMENT WILL REQUIRE THE ASSENT OF A NATION AS LARGE AS FRANCE AND CALLING ITSELF UKRAINE IF ITS ASSENT IS TO BE WON ITS OWN SECURITY INTERESTS WILL HAVE TO BE TREATED AS LEGITIMATE 9301060061 930106 INSIDE TRACK TAKE THE MONEY AND RUN NOT THESE CORPORATE CHIEFS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AS THE RACE TO EXERCISE STOCK OPTIONS HEATED UP LATE IN 1992 SOME COMPANY CHAIRMEN RESISTED THE TEMPTATION TO TAKE THE MONEY AND RUN IN RECENT WEEKS HUNDREDS OF COMPANY INSIDERS HAVE EXERCISED OPTIONS IN ANTICIPATION THAT PRESIDENTELECT CLINTON WILL RAISE INCOMETAX RATES AND TRIM CORPORATE TAX BREAKS FOR EXECUTIVE COMPENSATION MOST SENIOR INSIDERS EXERCISED THE OPTIONS AND IMMEDIATELY RESOLD THE RESULTING STOCK POSTELECTION FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW BUT ABOUT A QUARTER OF THE EXECUTIVES WHO EXERCISED COMPANYGRANTED OPTIONS USED THEM TO INCREASE THEIR TOTAL HOLDINGS IN THEIR COMPANIES THE CHAIRMEN OF SOUTHTRUST CORP MINNESOTA MINING & MANUFACTURING CO SYBRON CORP INSTRUMENT SYSTEMS CORP AND PROCTER & GAMBLE CO ARE AMONG THE INSIDERS WHO EXERCISED OPTIONS AND HELD MOREOVER THESE BULLISH TOP EXECUTIVES OFTEN BYPASSED HUGE IMMEDIATE PROFITS TOP EXECUTIVES' BUYANDHOLD BETS COULD SIMPLY INDICATE THAT THEY WERE UNWILLING TO INCUR THE TAX PENALTY FOR THEIR CAPITAL GAINS IN 1992 PERHAPS FIGURING THAT THE CAPITAL GAINS TAX RATE MAY FALL THIS YEAR OR IT COULD BE A BET THAT THEIR COMPANIES' STOCK WILL RISE ENOUGH TO MAKE HOLDING EVEN MORE PROFITABLE THAN SELLING NOW AND REALIZING THE SPREAD BETWEEN THE EXERCISE PRICE AND THE RECENT MARKET PRICE OF THE SHARES CONSIDER WILLIAM D MALONE JR CHAIRMAN OF SOUTHTRUST CORP A BIRMINGHAM ALA BANK HOLDING COMPANY WHO BYPASSED AN OPPORTUNITY TO FLIP HIS OPTIONS AT AN INDICATED PROFIT OF MORE THAN 2 MILLION MR MALONE EXERCISED OPTIONS FOR 200124 SHARES BETWEEN NOV 3 AND DEC 15 HE PAID FROM 894 TO 1474 A SHARE AND COULD HAVE IMMEDIATELY RESOLD THEM AT THE MARKET PRICE AT THE TIME OF ABOUT 2475 HE KEPT THEM ALL MR MALONE WAS ON VACATION BUT A SPOKESMAN FOR THE COMPANY SAID THAT ITS SUCCESS IN CONTROLLING LOAN LOSSES AND A SUCCESSFUL EXPANSION PROGRAM IN THE SOUTHEAST ARE EXPECTED TO LEAD TO GOOD EARNINGS AND GROWTH IN 1993 TOP EXECUTIVES BUYING BIG BLOCKS OF STOCK AREN'T THE ONLY ONES WHO HAVE BEEN EXERCISING OPTIONS ACTIVELY IN RECENT WEEKS THERE HAS ALSO BEEN SIZABLE BUYING THROUGH OPTIONSEXERCISE BY COMPANY INSIDERS OTHER THAN CHAIRMEN OR SMALLER BUYS BY CHAIRMEN AT SEVERAL COMPANIES AMONG THE COMPANIES INVOLVED ARE DOVER CORP ARCHERDANIELSMIDLAND CO NATIONSBANK CORP GENERAL HOST CORP AND US LIFE CORP ACCORDING TO ROBERT GABELE PRESIDENT OF INVEST/NET A FORT LAUDERDALE FLA FIRM THAT TRACKS AND ANALYZES INSIDER FILINGS BUT WHAT MAKES BIG PURCHASES BY CORPORATE CHAIRMEN PARTICULARLY INTERESTING IS THAT TRANSACTIONS BY THE PEOPLE AT THE TOP TEND TO BE THE MOST PREDICTIVE OF THE FUTURE COURSE OF A COMPANY'S STOCK PRICE ACCORDING TO STUDIES OF INSIDER TRADING PATTERNS IN ONE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL STUDY LAST YEAR PURCHASES BY CHAIRMEN AND PRESIDENTS OF 10000 OR MORE SHARES WERE SHOWN TO BE ABNORMALLY PROFITABLE OVER TIME ON NOV 11 SYBRON CORP CHAIRMAN KENNETH F YONTZ EXERCISED OPTIONS FOR 139885 SHARES SEC FILINGS SHOW SYBRON IS A MILWAUKEE MANUFACTURER OF LABORATORY AND DENTAL PRODUCTS THAT WENT PUBLIC LAST MAY MR YONTZ PAID 1 A SHARE FOR THE STOCK AND COULD HAVE RESOLD FOR ABOUT 20 A SHARE MR YONTZ EXERCISED THE OPTIONS IN ANTICIPATION OF THE TAX RATES GOING UP IN 1993 THE CHAIRMAN SAID IN A STATEMENT READ BY THE COMPANY'S GENERAL COUNSEL RESPONDING TO A REPORTER'S INQUIRY THE STATEMENT SAID MR YONTZ DIDN'T SELL SYBRON STOCK AT ITS PUBLIC OFFERING HASN'T SOLD SINCE THEN AND HAS NO PLANS TO DO SO THE CHAIRMAN OF MINNESOTA MINING & MANUFACTURING BOUGHT FEWER SHARES THAN SOME OF HIS TOPLEVEL COUNTERPARTS AT OTHER COMPANIES BUT HE PAID A HIGHER PERCENTAGE OF THE STOCK'S FULL MARKET PRICE THAN MANY OTHER EXECUTIVES LIVIO D DESIMONE EXERCISED OPTIONS FOR 2801 SHARES ON NOV 2 AT 8490 A SHARE PAYING A TOTAL OF 237805 SEC FILINGS SHOW HE COULD HAVE SOLD THE SHARES IMMEDIATELY AT 104 EACH FOR AN INDICATED 20ASHARE PROFIT BUT MR DESIMONE WHO DECLINED TO COMMENT HELD ON TO THE STOCK THE PURCHASE INCREASED HIS TOTAL HOLDINGS IN THE ST PAUL MINN CHEMICAL AND OFFICEPRODUCTS MANUFACTURER BY 7 TO 43134 SHARES SEC FILINGS SHOW SINCE THE TRANSACTION THE STOCK HAS EASED SOMEWHAT CLOSING YESTERDAY AT 9975 IN BIG BOARD TRADING PROCTER & GAMBLE'S CHAIRMAN EDWIN L ARTZT EXERCISED OPTIONS FOR 72340 P&G SHARES ON NOV 2 AND NOV 3 AT PRICES OF 1167 TO 1394 A SHARE ACCORDING TO SEC FILINGS HE SOLD 5780 OF THOSE SHARES IN THE OPEN MARKET AT 5275 A SHARE AND USED OTHERS TO PAY FOR THE OPTIONS EXERCISE BUT RETAINED 31994 OF THEM ACCORDING TO SEC FILINGS THE PURCHASE INCREASED MR ARTZT'S TOTAL HOLDINGS BY 12 TO 306745 SHARES SEC FILINGS SHOW HE DECLINED TO COMMENT P&G SHARES CLOSED YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING AT 53 A SHARE HARVEY BLAU CHAIRMAN OF INSTRUMENT SYSTEMS A JERICHO NY ELECTRONIC COMMUNICATIONS MANUFACTURER EXERCISED OPTIONS FOR 50000 SHARES ON DEC 10 AT 175 A SHARE THE EXERCISE FOLLOWED AN OPENMARKET PURCHASE ALSO OF 50000 SHARES AT 6 A SHARE THE WEEK EARLIER SEC FILINGS SHOW MR BLAU COULDN'T BE REACHED FOR COMMENT TOGETHER THE TRANSACTIONS INCREASED HIS TOTAL HOLDINGS TO 524165 SHARES SEC FILINGS SHOW IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY INSTRUMENT SYSTEMS SHARES CLOSED AT 6625 SOME COMPANY CHAIRMEN WHO HELD ON TO MOST OF THE SHARES THEY GAINED THROUGH YEAREND OPTIONS EXERCISES NOTE BASED ON INSIDER FILINGS WITH THE SEC AND INTERVIEWS WITH COMPANY OFFICIALS 9301060059 930106 BUSINESS BRIEF TUCSON ELECTRIC POWER CO UTILITY ASKS STATE REGULATORS FOR 96 AVERAGE RATE BOOST TUCSON ELECTRIC POWER CO TUCSON ARIZ SAID IT FILED WITH STATE REGULATORS FOR A 96 AVERAGE RATE BOOST SAYING THE INCREASE IS NEEDED TO RECOVER INCURRED COSTS AND TO MOVE THE COMPANY TOWARD FINANCIAL HEALTH THE UTILITY'S REQUEST FOR A RATE BOOST FOLLOWS BY ONLY TWO WEEKS ITS COMPLETION OF A 3 BILLION DEBT RESTRUCTURING AND AGREEMENT WITH CREDITORS THAT AVERTED A LONG FLIRTATION WITH BANKRUPTCY THE FILING WITH THE ARIZONA CORP COMMISSION WAS WIDELY ANTICIPATED THE ARIZONA CORP COMMISSION STAFF IMMEDIATELY POURED COLD WATER ON THE 3 INCREASE PROPOSAL GARY YAQUINTO UTILITIES DIVISION DIRECTOR SAID HE HAD GRAVE DOUBTS ABOUT THE APPLICATION FOR WHAT HE TERMED EMERGENCY RATE RELIEF 9301060058 930106 BUSINESS BRIEF UNOCAL CORP AGREEMENT REACHED TO SELL SOME GEOTHERMAL INTERESTS UNOCAL CORP SAID IT AGREED TO SELL ITS INTEREST IN ABOUT 41000 ACRES OF PARTLY DEVELOPED GEOTHERMAL PROPERTIES TO CALIFORNIA ENERGY CO THE PRICE WASN'T DISCLOSED THE ACERAGE CALLED THE GLASS MOUNTAINMEDICINE LAKE PROPERTIES IS IN NORTHERN CALIFORNIA CLOSE TO THE OREGON BORDER UNOCAL SAID IT HOLDS A 61 INTEREST IN THE PROPERTIES THE OTHER PRINCIPAL HOLDER IS FREEPORTMCMORAN INC UNOCAL SAID UNOCAL'S AGREEMENT IS ITS SECOND IN RECENT WEEKS TO SELL GEOTHERMAL PROPERTIES FROM WHICH STEAM AND HOT WATER CAN BE EXTRACTED FROM UNDERGROUND STRUCTURES TO GENERATE ELECTRICITY IN DECEMBER THE LOS ANGELES OIL COMPANY AGREED TO SELL TO MAGMA POWER CO FOR 225 MILLION ITS GEOTHERMAL LEASES IN SOUTHERN CALIFORNIA'S IMPERIAL VALLEY AS WELL AS ACERAGE IN TWO OTHER AREAS IT'S BELIEVED THAT THE TRANSACTION WITH CALIFORNIA ENERGY WHICH IS BASED IN OMAHA NEB HAS A FRACTION OF THAT VALUE BECAUSE THE PROPERTIES ARE LARGELY UNDEVELOPED UNOCAL RETAINS INTERESTS IN THE GEYSERS AREA NORTH OF SAN FRANCISCO AND HAS GEOTHERMAL OPERATIONS IN THE PHILIPPINES 9301060057 930106 POLITICS & POLICY LATE SPURT OF FOREIGN POLICY ACTIONS BY BUSH MAY HELP CHART AN EARLY COURSE FOR CLINTON BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENTELECT CLINTON WILL HAVE FOREIGNPOLICY HEADACHES APLENTY WHEN HE TAKES OFFICE TWO WEEKS FROM TODAY BUT PRESIDENT BUSH HAS ADMINISTERED SOME MEDICINE THAT WILL AT LEAST EASE THE PAIN BY CLOSING THE STRATEGIC ARMS REDUCTION PACT WITH RUSSIA PRODDING THE UNITED NATIONS TOWARD A TOUGHER STANCE IN BOSNIA AND PUSHING AHEAD THE DEPLOYMENT OF TROOPS IN SOMALIA MR BUSH HAS TAKEN STEPS IN THE PAST MONTH THAT MR CLINTON PROBABLY WOULD HAVE HAD TO TAKE ON HIS OWN OTHERWISE AND ALL OF THOSE MOVES WOULD HAVE BEEN MORE DIFFICULT AND TIMECONSUMING FOR THE PRESIDENTELECT AND HIS TEAM THAN THEY HAVE BEEN FOR THE OUTGOING PRESIDENT ALL THIS REPRESENTS A SURPRISING TURNAROUND FROM THE SCENE JUST AFTER THE ELECTION WHEN A DESPONDENT PRESIDENT BUSH DIDN'T SEEM INCLINED TO TAKE ANY INITIATIVES BEFORE LEAVING OFFICE BY AND LARGE PRESIDENT BUSH HAS DONE HIM A FAVOR SAYS HAROLD BROWN DEFENSE SECRETARY IN THE CARTER ADMINISTRATION THIS HARDLY MEANS THAT MR CLINTON WON'T FACE ANY DIFFICULT EARLY DECISIONS IN FACT MR BROWN NOTES MOVES BEING MADE NOW COULD FORCE MR CLINTON TO FACE SOME TOUGH QUESTIONS SOONER THAN HE MIGHT HAVE WANTED SUCH AS PRECISELY HOW TO KEEP WARPLANES OUT OF THE SKIES OVER BOSNIA MOREOVER CLINTON AIDES SAY THAT MR BUSH HASN'T ALLEVIATED ONE BIG POTENTIAL FOREIGNPOLICY PROBLEM A POSSIBLE FLOOD OF BOAT PEOPLE STREAMING TOWARD FLORIDA'S SHORES FROM HAITI AS SOON AS MR CLINTON 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 NOW ASSUME THEY WILL GET EASY ACCESS TO THE US AND AS A RESULT ARE BUSILY BUILDING BOATS IN WHICH TO FLEE IN FACT HAITI PROBABLY WAS ON THE AGENDA WHEN MR CLINTON MET IN PRIVATE WITH HIS FOREIGNPOLICY BRAIN TRUST IN LITTLE ROCK ARK YESTERDAY STILL MEMBERS OF THE CLINTON TEAM SAY THEY ARE GRATEFUL THAT AT LEAST SOME TOUGH FOREIGNPOLICY NUTS HAVE BEEN CRACKED IN PARTICULAR THE COMPLETION OF THE STRATEGIC ARMS REDUCTION TREATY ON PRESIDENT BUSH'S WATCH COMES AS A BIG RELIEF I THINK IT'S A VERY BIG HELP THAT HE'S CLOSED THE START AGREEMENT BECAUSE IT HAD SLIPPED SO LONG IT COULD HAVE BEEN LOST SAYS ALTON FRYE VICE PRESIDENT OF THE COUNCIL ON FOREIGN RELATIONS GETTING THAT JOB DONE IS A REAL CONTRIBUTION AND CLINTON'S SPIRITED AFFIRMATION OF SUPPORT FOR THE AGREEMENT SUGGESTS HE KNOWS HOW IMPORTANT IT IS THAT THAT JOB GET DONE THE ARMS DEAL KNOWN AS START II IS ARGUABLY THE MOST IMPORTANT ARMSCONTROL AGREEMENT EVER COMPLETED BECAUSE OF THE DEPTH AND BREADTH OF THE CUTS IT REQUIRES IT WILL SLASH US AND RUSSIAN STRATEGIC NUCLEAR ARSENALS TO ROUGHLY A THIRD OF THEIR COLD WAR SIZES AND ELIMINATE THE BIG MULTIPLEWARHEAD LANDBASED MISSILES THAT HAVE BEEN THE MOST DESTABILIZING SUPERPOWER WEAPONS THE FATE OF START II HAD BECOME INCREASINGLY WORRISOME MR BUSH AND RUSSIAN PRESIDENT BORIS YELTSIN HAD AGREED IN PRINCIPLE ON THE DEAL BACK IN JUNE YET THE NEARLY COMPLETED PACT HAD LANGUISHED UNFINISHED SINCE THEN THE LONGER THE ENORMOUSLY COMPLEX TASK OF NAILING DOWN FINAL DETAILS WENT UNACCOMPLISHED THE GREATER WAS THE RISK THAT OPPONENTS TO THE DEAL IN MOSCOW COULD BUILD UP ENOUGH STEAM TO STOP THE AGREEMENT ENTIRELY IT WOULD HAVE BEEN DIFFICULT FOR THE CLINTON TEAM TO PICK UP THE ONGOING NEGOTIATIONS WITHOUT LETTING EVEN MORE VALUABLE TIME SLIP AWAY AS THINGS STAND NOW MR CLINTON ASSUMES THE FAIRLY EASY TASK OF WINNING SENATE RATIFICATION FOR A TREATY THAT IS WIDELY POPULAR AND A TOUGHER JOB CONVINCING UKRAINE AND OTHER FORMER SOVIET REPUBLICS TO CUT THEIR NUCLEAR ARSENALS IN COOPERATION WITH RUSSIA SIMILARLY MR CLINTON WILL INHERIT PLENTY OF PROBLEMS ON SOMALIA BUT THEY WON'T INCLUDE THE EMOTIONALLY PACKED QUESTION OF WHETHER TO COMMIT US TROOPS ABROAD ONE BUSH AIDE IN FACT SAYS THE OUTGOING ADMINISTRATION INTENDS TO LEAVE MR CLINTON A SET OF PLANS THAT CALLS FOR BEGINNING A WITHDRAWAL OF US TROOPS FROM SOMALIA SOON AFTER MR CLINTON'S JAN 20 INAUGURATION THAT DOESN'T MEAN THAT IMPLEMENTING A WITHDRAWAL WILL BE SIMPLE DEMOCRATIC REP LEE HAMILTON OF INDIANA THE NEW CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE AND A CLINTON ALLY WORRIES IN PARTICULAR THAT A REAL DIFFERENCE IS DEVELOPING BETWEEN THE US AND UN SECRETARY GENERAL BOUTROS BOUTROSGHALI OVER THE US EXIT FROM SOMALIA REP HAMILTON FEARS THE UN CHIEF MAY BE DRAGGING HIS FEET IN FORMING A UN CONTINGENT TO TAKE THE PLACE OF DEPARTING US TROOPS PRECISELY BECAUSE HE WANTS TO PRESSURE THE STRONGER US FORCE TO STAY ON LONGER IN SOMALIA AND DEPARTING WON'T NECESSARILY BE NEAT WHENEVER IT OCCURS PLANNERS ARE CONSIDERING OPTIONS FOR LEAVING BEHIND A SMALL AMPHIBIOUS FORCE NEAR SOMALIA TO REENTER IF NECESSARY STILL AT THIS POINT SOMALIA IS MORE OR LESS ON TRACK AND I ASSUME IT WILL REMAIN ON TRACK SAYS MR FRYE MR CLINTON PROBABLY FACES TOUGHER PROBLEMS ON BOSNIA NO MATTER HOW FAR MR BUSH PUSHES THE BALL BEFORE DEPARTING BUSH AIDES ARE WORKING HARD BEHIND THE SCENES TO PULL TOGETHER A UN SECURITY COUNCIL RESOLUTION AUTHORIZING USE OF MILITARY POWER TO BAR SERBIAN AIRCRAFT FROM USING THE SKIES OVER BOSNIA IN THEIR ATTEMPTS TO SEIZE CONTROL OF BOSNIAN TERRITORY MR CLINTON SUPPORTS THAT EFFORT AND SOME BUSH AIDES PREDICT THE SECURITY COUNCIL COULD ACT BY THE END OF THIS WEEK SECURING AGREEMENT ON A PLAN HAS REQUIRED LOTS OF PRESSURE ON RELUCTANT ALLIES THAT MIGHT HAVE BEEN EASIER FOR A VETERAN PRESIDENT TO EXERT THAN A NEW ONE THE BUSH TEAM ALSO IS WORKING OUT PLANS DETAILING HOW THE US AND ITS ALLIES WILL ACTUALLY USE THEIR AIR POWER TO ENFORCE THE RESOLUTION STILL IT NOW IS SO LATE IN THE BUSH ADMINISTRATION THAT THE TOUGH PROBLEM OF ACTUALLY IMPLEMENTING THOSE PLANS WILL HAVE TO BE LEFT FOR MR CLINTON IT'S A ROAD THAT LEADS TO SOME VERY TOUGH DECISIONS DOWN THE LINE WARNS REP HAMILTON AND WHATEVER SHORTTERM BREATHING SPACE MR BUSH MIGHT BE OFFERING HIS SUCCESSOR ON SUCH HOT SPOTS IT'S CLEAR THAT MR CLINTON WILL HAVE LONGRANGE WORK TO DO ON THE BROADER PROBLEMS OF NURSING RUSSIA THROUGH ITS DEMOCRATIC AND MARKET REFORMS WATCHING FOR CONTINUED IRAQI ATTEMPTS TO DEFY THE WORLD COMMUNITY AND PUSHING THE MIDDLE EAST PEACE PROCESS TO COMPLETION ON THESE TRULY DIFFICULT ISSUES ARGUES FORMER NATIONAL SECURITY ADVISER ZBIGNIEW BRZEZINSKI THERE HASN'T BEEN MUCH RELIEF 9301060056 930106 ALASKA AIR SAYS TRAFFIC IN DECEMBER AT 2 UNITS WENT IN 2 DIRECTIONS SEATTLE ALASKA AIR GROUP INC WHICH HAS BEEN HURT LATELY BY AIRLINE FARE WARS SAID THAT DECEMBER TRAFFIC DROPPED 6 AT ITS ALASKA AIRLINES SUBSIDIARY BUT ROSE 15 AT ITS HORIZON AIR UNIT ALASKA AIRLINES BY FAR THE LARGER OF THE TWO UNITS FLEW 4122 MILLION REVENUE PASSENGER MILES IN DECEMBER DOWN FROM 4397 MILLION A YEAR EARLIER LOAD FACTOR FOR THE MONTH WAS 545 DOWN FROM 566 A YEAR AGO FOR 1992 ALASKA AIRLINES FLEW 554 BILLION REVENUE PASSENGER MILES A 12 INCREASE FROM 495 BILLION MILES IN 1991 LOAD FACTOR FOR THE YEAR WAS 576 UP FROM 563 A YEAR EARLIER HORIZON AIR FLEW 44 MILLION REVENUE PASSENGER MILES IN DECEMBER UP FROM 381 MILLION A YEAR EARLIER ITS DECEMBER LOAD FACTOR WAS 574 UP FROM 56 A YEAR AGO FOR THE YEAR HORIZON AIR FLEW 4856 MILLION REVENUE PASSENGER MILES UP 20 FROM 4049 MILLION A YEAR AGO ITS LOAD FACTOR FOR 1992 WAS 537 UP FROM 515 IN 1991 A REVENUE PASSENGER MILE IS ONE PASSENGER FLOWN ONE MILE LOAD FACTOR IS THE PERCENTAGE OF A CARRIER'S SEATS FILLED BY PAYING PASSENGERS THE SCHEDULED CHARTERED AIRLINE GROUP HAS BEEN WOBBLED BY THE WIDESPREAD DISCOUNTING IN THE AIRLINE INDUSTRY ON MONDAY IT ANNOUNCED A SERIES OF COSTCUTTING MOVES INCLUDING SOME LAYOFFS AND CANCELLATION OF CONSTRUCTION OF A MAINTENANCE FACILITY DESIGNED TO SAVE ABOUT 50 MILLION IN ANNUAL EXPENDITURES IN TRADING ON THE NEW YORK STOCK EXCHANGE ALASKA AIR ROSE 25 CENTS TO 17 9301060055 930106 USW RELAXES ITS HARD STANCE ON LABOR PACTS STEEL UNION SAYS IT PLANS TO SEEK WAYS TO TRIM WORK FORCE EASE RULES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH THE UNITED STEELWORKERS UNION IN A SHIFT FROM ITS HARDLINE STANCE SAID IT WILL SEEK INNOVATIVE AGREEMENTS WITH US STEELMAKERS INCLUDING LONGTERM ACCORDS AND WAYS TO CUT WORK FORCES AND RELAX STRINGENT WORK RULES FOLLOWING A MEETING HERE OF TOP UNION OFFICIALS TO PREPARE FOR COMING TALKS WITH AT LEAST FOUR STEELMAKERS THE UNION SAID IT WANTS A COMPLETELY NEW DIRECTION IN COLLECTIVE BARGAINING IT ACKNOWLEDGED US STEELMAKERS' WOES AND THE NEED TO CREATE A MODERN INDUSTRY IN RETURN FOR ITS NEW POSITION THE UNION SAID IT WANTS JOBSECURITY GUARANTEES IN THE CONTRACTS THAT WILL REPLACE THE CURRENT ONES EXPIRING JULY 31 THE INDUSTRY HAS NEEDS AND THE AMERICAN ECONOMY HAS NEEDS SAID USW PRESIDENT LYNN WILLIAMS NOW IS THE TIME TO MOVE FORWARD THE UNION SAID IT WILL OFFER US STEELMAKERS EARLY CONTRACT NEGOTIATIONS AND WILL CONSIDER LONGTERM AGREEMENTS MENTIONING A NINEYEAR ACCORD AS ONE POSSIBILITY COMPANIES HAVE SOUGHT LONGTERM AGREEMENTS THE CURRENT ONE IS ABOUT FOUR YEARS BUT THE UNION HAS OFTEN BALKED AT THESE PROPOSALS IN ANOTHER DEPARTURE THE UNION ALSO EXPRESSED A WILLINGNESS FOR RESTRUCTURING THE WORK FORCE AND REORGANIZING THE WAY WORK IS DONE TO HELP PRODUCERS BOOST QUALITY AND REDUCE COSTS THE USW SAID REDUCTIONS IN THE HOURLY WORK FORCE MIGHT BE DONE THROUGH ATTRITION EARLY RETIREMENT AND REDUCED OVERTIME THE UNION ALSO SAID IT WOULD HELP COMPANIES REDUCE HEALTHCARE COSTS THROUGH A MANAGEDCARE ALTERNATIVE TO THE CURRENT PLAN WHICH PROVIDES MORE TRADITIONAL MAJOR MEDICAL COVERAGE IN EXCHANGE FOR THIS FLEXIBILITY THE STEELWORKERS SAID THEY WOULD ALLOW NO CONCESSIONS IN WAGES OR BENEFITS THEY WILL ALSO SEEK NOLAYOFF POLICIES AND HEIGHTENED WORKER INVOLVEMENT POSSIBLY INCLUDING UNION REPRESENTATION ON BOARDS THE UNION ALSO SAID IT WOULD SEEK A FEE OF ABOUT 5 FOR EACH TON OF STEEL SHIPPED TO HELP COMPANIES PAY FOR PENSIONS AND RETIREES' HEALTH CARE THE UNION ALSO SEEKS THE RESOLUTION OF DIFFERENCES OVER THE USE OF NONUNION CONTRACT WORKERS ANALYSTS WERE OPTIMISTIC THAT THE CHANGES REFLECT A NEW TACT FOR ORGANIZED LABOR IT SOUNDS LIKE A MORE HEADOUTOFTHESAND APPROACH SAID JOHN JACOBSON A STEELINDUSTRY CONSULTANT WITH JACOBSON & ASSOCIATES THAT WOULD PERHAPS INDICATE MORE OF A WILLINGNESS TO WORK WITH THE COMPANIES TO COME UP WITH MORE SOLUTIONS THE EXPIRING ACCORDS COVER 36000 WORKERS AT FOUR COMPANIES BETHLEHEM STEEL CORP INLAND STEEL INDUSTRIES INC NKK CORP'S NATIONAL STEEL CORP AND ARMCO INC THE UNION SAID IT WOULD ALSO OFFER TO OPEN TALKS WITH USX CORP'S US STEEL WHICH HAS AN AGREEMENT THAT EXPIRES NEXT JANUARY THE USW DECLINED TO SAY WHICH COMPANY IT WOULD TARGET TO LEAD THE NEGOTIATIONS BUT OFFICIALS SAID TWO LIKELY CANDIDATES ARE US STEEL AND INLAND BECAUSE BOTH REQUESTED A RENEGOTIATION OF THE EXISTING CONTRACT LAST YEAR FOR THE PAST TWO CONTRACTS BETHLEHEM HAS LED THE NEGOTIATIONS A SPOKESMAN FOR USX SAID THE COMPANY IS WILLING TO LOOK AT WHAT THEY HAVE TO SAY HE ADDED THAT LONGTERM AGREEMENTS ARE IN THE BEST INTEREST OF THE INDUSTRY BECAUSE THEY COULD OFFER STABILITY IF DESIGNED RIGHT TO OFFSET CYCLICAL ASPECTS OF THE BUSINESS 9301060054 930106 BUSINESS BRIEF NATIONAL MERCANTILE BANCORP COMPANY EXPECTS TO POST LOSS FOR FOURTH PERIOD YEAR NATIONAL MERCANTILE BANCORP SAID IT EXPECTS TO REPORT A LOSS FOR THE FOURTH QUARTER AND ALL OF 1992 AFTER A 16 MILLION CHARGE RELATED TO AN AGREEMENT TO SUBLEASE SOME OF ITS OFFICE SPACE IN LAST YEAR'S FOURTH QUARTER THE LOS ANGELESBASED COMPANY HAD A LOSS OF 3 MILLION OR 98 CENTS A SHARE FOR ALL OF 1991 THE LOSS WAS 39 MILLION OR 129 A SHARE THE AGREEMENT IS A FOURYEAR SUBLEASE OF AN ENTIRE FLOOR IN THE COMPANY'S HEADQUARTERS OFFICE THE BANK HOLDING COMPANY SAID THE SUBLEASE WILL REDUCE THE COMPANY'S RENTAL EXPENSE OVER FOUR YEARS STARTING MARCH 1 THE CHARGE IS EQUAL TO THE DIFFERENCE BETWEEN THE COMPANY'S LEASE COSTS ON THE SPACE AND SUBLEASE PAYMENTS OVER FOUR YEARS THE SUBLEASE IS A KEY COMPONENT TO A PLAN TO FURTHER REDUCE EXPENSES THE COMPANY SAID IN OCTOBER THE COMPANY COMPLETED A PACT TO REDUCE ITS DATA PROCESSING COSTS OVER THE PAST YEAR ABOUT 28 JOBS HAVE BEEN CUT HALF OF THEM IN THE PAST MONTH EMPLOYMENT NOW STANDS AT ABOUT 112 PEOPLE DOWN 20 FROM A YEAR AGO DESPITE THE ACCOUNTING CHARGE THE COMPANY SAID THE CAPITAL RATIOS OF ITS MERCANTILE NATIONAL BANK SUBSIDIARY ARE EXPECTED TO REMAIN ABOVE THE MINIMUMS SPECIFIED IN A 1991 AGREEMENT WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY 9301060053 930106 SUMMIT TECHNOLOGY SAYS DAMAGE AWARD WILL RESULT IN CHARGE WALTHAM MASS SUMMIT TECHNOLOGY INC SAID ITS FOURTH QUARTER WILL INCLUDE A ONETIME RESERVE OF 480000 AGAINST EARNINGS BECAUSE OF A DAMAGE AWARD THE COMPANY EXPECTS TO PAY TO A DISTRIBUTOR SUMMIT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER DAVID MULLER SAID HE DOES NOT KNOW WHETHER THE CHARGE WILL RESULT IN A LOSS FOR THE QUARTER IN THE YEARAGO FOURTH QUARTER SUMMIT HAD NET INCOME OF 342000 OR TWO CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY CREDIT FROM TAX LOSS CARRYFORWARDS OF 356288 IN 1992'S THIRD QUARTER SUMMIT EARNED 302000 OR TWO CENTS A SHARE ON REVENUE OF 81 MILLION THE FOURTHQUARTER RESERVE STEMS FROM AN ARBITRATION AWARD WON IN DECEMBER 1992 BY SOCIETE BERNAS MEDICAL A FRENCH VENDOR OF MEDICAL EQUIPMENT WHOSE DISTRIBUTION CONTRACT SUMMIT CANCELED IN 1991 SUMMIT A MAKER OF LASERS THAT TREAT VISION PROBLEMS ENDED THE CONTRACT BECAUSE SOCIETE BERNAS DIDN'T DISTRIBUTE ENOUGH OF OUR PRODUCT AND FELL BELOW THEIR QUOTA SAID MR MULLER AN ARBRITATION JUDGMENT ISSUED LAST MONTH HOWEVER FOUND THAT SUMMIT HAD DAMAGED THE FRENCH COMPANY AND WRONGFULLY TERMINATED THE CONTRACT MR MULLER SAID HE ADDED THAT SUMMIT PLANS TO APPEAL THE DECISION TO MASSACHUSETTS COURTS BUT SAID IT IS UNLIKELY THAT IT WILL BE OVERTURNED SOCIETE BERNAS COULDN'T BE REACHED FOR COMMENT WHILE THE AWARD WILL BE MATERIAL TO OUR QUARTERLY EARNINGS PER SHARE IT IS NOT MATERIAL TO SUMMIT'S OVERALL FINANCIAL POSITION WHICH REMAINS STRONG SAID MR MULLER HE SAID THE COMPANY HAS 8 MILLION TO 10 MILLION IN CASH RESERVES AND NEXT TO THAT HALF A MILLION DOLLARS IS NOT MUCH 9301060051 930106 WHY WALL STREET IS COOLING TO COMMISSIONS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET IS TRYING TO TEACH BROKERS TO BE HERDERS NOT HUNTERS TRADITIONALLY BROKERS HAVE BEEN EXPERTS ON TRACKING DOWN CUSTOMERS WHO GENERATE BIG COMMISSIONS BUYING AND SELLING STOCKS AND BONDS THE INDIVIDUAL WITH A PENSION PAYOUT THE WEALTHY HEIR THE TOP EXECUTIVE THE BUSINESS OWNER BUT THAT'S RAPIDLY CHANGING MORE AND MORE BROKERAGE HOUSES ARE URGING BROKERS TO FOCUS THEIR EFFORTS ON SHEPHERDING INVESTORS INTO WRAP ACCOUNTS COLLEGE SAVINGS PROGRAMS RETIREMENT PLANS AND OTHER LONGTERM ASSETMANAGEMENT ACCOUNTS THAT GENERATE CONTINUING FEES FEES ARE A MORE STEADY SOURCE OF INCOME FOR FIRMS SAYS LEONARD REINHART PRESIDENT OF SHEARSON'S CONSULTING GROUP A LEADER IN THE FEEBASED ARENA WHILE FEEBASED ASSETMANAGEMENT SERVICES HAVE BEEN AROUND FOR YEARS THEY TOOK OFF IN THE LATE 1980S BECAUSE OF A GROWING APPETITE AMONG CLIENTS FOR INVESTMENT MANAGEMENT SAYS DENNIS BERTRUM DIRECTOR OF INVESTMENT MANAGEMENT SERVICES AT PRUDENTIAL SECURITIES INC AT THE SAME TIME HE SAYS THE SECURITIES INDUSTRY'S TRADITIONAL COMMISSION REVENUE WAS DECLINING THE WHOLE INDUSTRY IS EVOLVING AWAY FROM A BROKER REVENUE STREAM TO AN ASSETBASED REVENUE ARRANGEMENT MR BERTRUM SAYS HE SAYS COMMISSIONS ACCOUNTED FOR ONLY 8 OF HIS DIVISION'S REVENUE LAST YEAR DOWN SHARPLY FROM 95 IN 1985 FEE INCOME NOW PROVIDES MORE THAN 90 OF THE INCOME HE SAYS THIS SHIFT IS ALSO BEING DRIVEN BY POWERFUL COMPETITION FROM MUTUAL FUND COMPANIES WRAP ACCOUNTS AND OTHER FEEBASED SERVICES ARE AN INGENIOUS SOLUTION TO COMPETITION FROM MUTUAL FUNDS SAYS DON PHILIPS PUBLISHER OF MORNINGSTAR INC A MUTUAL FUND TRACKING SERVICE THE GIANT NOLOAD MUTUAL FUND COMPANIES HAVE WON OVER MILLIONS OF INVESTORS SOURED BY OVERLY AGGRESSIVE BROKERS AND THE BUSTED LIMITED PARTNERSHIPS JUNK BONDS AND REAL ESTATE INVESTMENTS THAT BROKERS SHOVELED AT THEM IN THE 1980S THE FUNDS' APPEAL SINCE THEY CHARGE NO COMMISSIONS THE INVESTOR PAYS LESS FOR INVESTMENTS AND ESCAPES SALES PITCHES INVESTORS HAVE BECOME WARIER OF THE INDIVIDUAL SALE SAYS MR REINHART HE SAYS FOCUS GROUPS CONDUCTED BY SHEARSON SHOW THAT INVESTORS ARE INCREASINGLY LEERY OF TAKING ADVICE FROM ADVISERS WHO EARN COMMISSIONS DEMOGRAPHICS ARE ALSO PAVING THE WAY FOR MORE FEEBASED ASSETMANAGEMENT SERVICES EIGHT MILLION BABY BOOMERS AGED 28 TO 46 ARE MOVING INTO THE KEY SAVINGS YEARS OF THEIR CAREERS AND HAVING CHILDREN SAYS JOHN PHILIP COUGHLAN AN EXECUTIVE VICE PRESIDENT AT DISCOUNT BROKERAGE FIRM CHARLES SCHWAB & CO THEY AREN'T THINKING I NEED A STOCK I NEED A BOND' THEY'RE THINKING I NEED A COLLEGESAVINGS PROGRAM RETIREMENTSAVINGS MANAGEMENT AND ESTATE PLANNING' HE SAYS BUT THE BIGGEST PUSH TOWARD FEEBASED ARRANGEMENTS HAS BEEN THE EXPLOSIVE SHIFT IN PENSION AND RETIREMENT PLANS EMPLOYERS ARE INCREASINGLY GIVING DEPARTING EMPLOYEES THEIR PENSION ACCUMULATION IN A LUMP SUM IN ADDITION EMPLOYERS ARE SUPPLEMENTING OR REPLACING TRADITIONAL PENSION PLANS WITH RETIREMENT SAVINGS PLANS SUCH AS 401K AND PROFITSHARING PLANS THAT REQUIRE EMPLOYEES TO MANAGE THEIR OWN INVESTMENTS PRUDENTIAL'S MR BERTRUM SAYS THE AVAILABILITY OF MONEY FROM DEFINED CONTRIBUTION RETIREMENT PLANS AND PENSION PLANS HAS TRANSFORMED HIS GROUP TEN YEARS AGO 75 OF MY BUSINESS WAS CORPORATE PENSION AND QUALIFIED PLANS NOW 75 IS INDIVIDUAL RETIREMENT PLANS HE SAYS SEE RELATED ARTICLE YOUR MONEY MATTERS UNCOVERING THE NEW MUTUAL FUND WRAP' PACKAGES WSJ JAN 6 1993 9301060050 930106 INTERNATIONAL IMELDA MARCOS NEARS PACT ON SWISS ASSETS TRANSFER MANILA PHILIPPINES IMELDA MARCOS AND THE PHILIPPINE GOVERNMENT MOVED TOWARD AN AGREEMENT TO TRANSFER TO PHILIPPINE BANKS 356 MILLION FROZEN IN SWISS BANK ACCOUNTS SOLICITOR GENERAL RAUL GOCO SAID HE REACHED AN AGREEMENT IN PRINCIPLE ON THE TRANSFER WITH MRS MARCOS AND HER LAWYERS RENATO DILAG A MARCOS LAWYER CONFIRMED THAT LEGAL ADVISERS TO THE WIDOW OF FORMER PHILIPPINE PRESIDENT FERDINAND MARCOS HAVE BEEN NEGOTIATING WITH MR GOCO BUT HE ADDED CERTAIN MATTERS HAVE TO BE THRESHED OUT BEFORE THERE CAN BE A FINAL SIGNING UNDER A DRAFT ACCORD PREPARED BY MR GOCO'S OFFICE THE MONEY WOULD BE HELD IN PHILIPPINE BANKS UNTIL MRS MARCOS AND THE GOVERNMENT AGREE HOW TO USE IT OR PHILIPPINE COURTS RULE ON ALLEGATIONS THAT THE FUNDS ARE PART OF 5 BILLION TO 10 BILLION BLED FROM THE COUNTRY DURING MR MARCOS'S 21YEAR RULE SPECULATION THAT THE GOVERNMENT MIGHT SPLIT THE MONEY WITH MRS MARCOS HAS BEEN HEIGHTENED BY THE AGREEMENT'S STIPULATION THAT 70 OF THE 356 MILLION FROZEN IN SWISS BANKS BE TRANSFERRED TO PHILIPPINE GOVERNMENT BANKS AND 30 TO PHILIPPINE COMMERCIAL BANKS SWITZERLAND FROZE THE ACCOUNTS AT MANILA'S REQUEST DAYS AFTER MR MARCOS FLED THE PHILIPPINES IN FEBRUARY 1986 MRS MARCOS HAS MAINTAINED THAT THE SWISS ACCOUNTS REPRESENT HIS PERSONAL WEALTH FROM BUSINESS DEALS AND A GOLD HOARD HE FOUND BEFORE BECOMING PRESIDENT 9301060049 930106 REVAMP OF FED GOVERNANCE PROPOSED BY REP GONZALEZ WASHINGTON HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ A CRITIC OF THE FEDERAL RESERVE BOARD INTRODUCED LEGISLATION TO RESTRUCTURE THE GOVERNANCE OF THE CENTRAL BANK THOUGH ITS CHANCES OF PASSAGE ARE REMOTE THE BILL WILL GIVE THE TENACIOUS TEXAS DEMOCRAT AN OPPORTUNITY TO HOLD ROUNDS OF HEARINGS ON THE FED WITH CONGRESSIONAL DEMOCRATS UNLIKELY TO ATTACK THE CLINTON ADMINISTRATION'S ECONOMIC POLICIES THE FED IS ALREADY BECOMING AN INCREASINGLY ATTRACTIVE TARGET FOR CRITICISM THE GONZALEZ BILL WOULD AMONG OTHER THINGS GIVE THE PRESIDENT THE POWER TO APPOINT THE PRESIDENTS OF THE 12 REGIONAL FED BANKS SUBJECT TO CONFIRMATION BY THE SENATE THE BANK PRESIDENTS WHO HAVE A VOICE IN SETTING INTEREST RATES CURRENTLY ARE NAMED BY PRIVATESECTOR BOARDS OF DIRECTORS SUBJECT TO APPROVAL BY THE PRESIDENTIAL APPOINTEES WHO SIT ON THE FED BOARD OF GOVERNORS IN WASHINGTON IN ADDITION THE GONZALEZ BILL WOULD REQUIRE THE FED TO DISCLOSE WITHIN A WEEK DECISIONS MADE BY ITS POLICYSETTING OPEN MARKET COMMITTEE AND TO RELEASE A FULL TRANSCRIPT AND VIDEOTAPE WITHIN 60 DAYS CURRENTLY THE FED DOESN'T MAKE A TRANSCRIPT OF ITS MEETINGS AND IT RELEASES ONLY A SUMMARY ROUGHLY SIX WEEKS LATER THE BILL ALSO WOULD CREATE A NINEMEMBER INDEPENDENT COMMISSION TO STUDY VARIOUS ASPECTS OF FED GOVERNANCE AND POLICY PRESIDENTELECT CLINTON WHO HAS TRIED TO CALM FINANCIAL MARKETS BY CAREFULLY AVOIDING ATTACKS ON THE FED ISN'T LIKELY TO SUPPORT THE GONZALEZ BILL 9301060048 930106 CREDIT MARKETS BOND REDEMPTION WAVE PROSPECTS OF LOWER RATES LIKELY TO LEAD TO FLOOD OF MUNICIPAL BOND ISSUES BY THOMAS T VOGEL JR AND GENE COLTER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A WAVE OF BOND REDEMPTIONS COMBINED WITH EXPECTATIONS OF DROPPING INTEREST RATES IS LIKELY TO LEAD TO A FLOOD OF NEW ISSUES IN THE MUNICIPAL BOND MARKET IN THE NEXT TWO WEEKS SAY UNDERWRITERS AND MARKET ANALYSTS ON JAN 1 AS MUCH AS 9 BILLION OF MUNICIPAL BONDS MANY OF THEM ISSUED AT INTEREST RATES EXCEEDING 10 IN THE 1980S WERE REDEEMED BY ISSUERS MANY OF THE INVESTORS HOLDING THOSE BONDS MAY STILL NEED TO REINVEST THEIR REDEMPTION MONEY SAY TRADERS THUS CREATING STRONG DEMAND FOR NEW ISSUES IN THE MARKET AT THE SAME TIME LOWER INTEREST RATES ARE TEMPTING ISSUERS TO CONSIDER COMING TO THE MARKET OVER THE PAST TWO MONTHS YIELDS FOR MUNICIPAL BONDS WITH LONG MATURITIES HAVE DROPPED 055 PERCENTAGE POINT ACCORDING TO THE BOND BUYER'S INDEX OF 40 BONDS THE BOND BUYER IS A TRADE PUBLICATION YESTERDAY THE AVERAGE PRICE OF A BOND IN THE INDEX JUMPED 3/8 OF A POINT TO 98 2/32 FOR A YIELD OF 638 DOWN FROM 645 ON MONDAY MEANWHILE IN THE TREASURY MARKET PRICES WERE NARROWLY MIXED WITH THE BENCHMARK 30YEAR BOND DOWN LESS THAN 1/8 POINT AT 103 14/32 FOR A YIELD OF 733 UP FROM 732 ON MONDAY DESPITE THE OVERALL LACK OF MOVEMENT THE FACT THAT THE TREASURY MARKET WAS ABLE TO MAINTAIN ITS GAINS FROM MONDAY MAY BE A POSITIVE SIGN PARTICIPANTS SAID ON MONDAY THE 30YEAR BOND ROSE 7/8 POINT GIVEN THAT WE RALLIED SO MUCH THE FACT THAT WE HELD SO MUCH WAS ENCOURAGING SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO THE MARKET HAS AN UNMISTAKABLE UPWARD BIAS SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS IN CHICAGO HOWEVER AHEAD OF FRIDAY'S KEY DECEMBER EMPLOYMENT REPORT AND AMID NERVOUSNESS ABOUT A POSSIBLE FLOOD OF CORPORATE SUPPLY THE TREASURY MARKET IS UNLIKELY TO MOVE MUCH FURTHER THIS WEEK SAID TRADERS AND ANALYSTS NO NEWS EMERGED TO DRIVE THE TREASURY MARKET TRADERS SHRUGGED OFF NEWS FROM THE JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC THAT CHAIN AND DEPARTMENT STORE SALES GAINED A SEASONALLY ADJUSTED 14 FOR THE FIVE WEEKS ENDED JAN 2 FROM NOVEMBER LEVELS IN ADDITION THERE WAS NO RESPONSE TO THE NEWS OF E GERALD CORRIGAN'S RESIGNATION AS PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK MR CORRIGAN SAID HE WOULD RETIRE ON AUG 20 WHILE THE NEW YORK FED PRESIDENT WAS HIGHLY RESPECTED IN THE MARKETS HE WAS NEVER VIEWED AS ANYONE WHO WAS PULLING THE FED IN ONE DIRECTION OR ANOTHER HE ALWAYS HAS BEEN IN THE MAINSTREAM MR KARYDAKIS SAID YESTERDAY MUNICIPAL BONDS WERE GENERALLY UNCHANGED TO 1/4 POINT FIRMER AT THE END OF CALM TRADING BUT UNDERWRITERS SAY THAT AS MUCH AS 6 BILLION IN NEW SECURITIES COULD COME TO THE MARKET IN THE NEXT TWO WEEKS IF YIELDS REMAIN STEADY MANY MORE NEW ISSUES MIGHT BE OFFERED IF YIELDS DROP ACCORDING TO WILLIAM K LUDOLPH MANAGER OF MUNICIPAL UNDERWRITING AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP IF YIELDS ON MUNICIPAL BONDS DROP ANOTHER 010 PERCENTAGE POINT WE COULD HAVE A GANGBUSTERS JANUARY INVESTORS ARE ANXIOUSLY AWAITING THE PRICING OF A 145 BILLION ISSUE BY THE NORTH CAROLINA EASTERN MUNICIPAL POWER AGENCY SCHEDULED FOR SOMETIME NEXT WEEK UNDERWRITERS SAY THAT IT WILL SERVE AS A BENCHMARK FOR THE REST OF THE MARKET BECAUSE OF ITS SIZE THE ISSUE HAD BEEN PRICED AND PULLED DUE TO WEAK DEMAND IN SEPTEMBER BY LEAD UNDERWRITER SMITH BARNEY HARRIS UPHAM & CO ACCORDING TO MR LUDOLPH IF THE DEAL GOES WELL THAT COULD ENCOURAGE OTHER ISSUERS TO RUSH TO MARKET AS WELL AMONG THE NEW ISSUES COMING TO MARKET DURING THE FIRST QUARTER IS 453 BILLION OF SECURITIES EXPECTED TO BE SOLD BY NEW YORK STATE ITS MAJOR AUTHORITIES AND NEW YORK CITY DURING THE FIRST QUARTER ACCORDING TO AN ANNOUNCEMENT BY NEW YORK STATE COMPTROLLER EDWARD REGAN OF THAT AMOUNT 2365 MILLION IS SCHEDULED TO BE SOLD IN JANUARY FOLLOWED BY 205 BILLION IN FEBRUARY AND 224 BILLION IN MARCH ACCORDING TO MR REGAN ROUGHLY 500 MILLION OF NEW MUNICIPAL SECURITIES WERE SOLD YESTERDAY THE LARGEST WAS THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 200 MILLION 1993 ELECTRIC PLANT REVENUE BONDS A CHEMICAL SECURITIES INC GROUP WON THE BONDS IN COMPETITIVE BIDDING SETTING YIELDS AT 500 FOR NOTES MATURING IN 1999 TO 624 FOR THOSE MATURING IN 2033 BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP HAVE RATED THE BONDS DOUBLEA HIGH YIELDS IN FOREIGN GOVERNMENT BOND MARKETS ATTRACTED MANY US INVESTORS LAST YEAR BUT LOOKS CAN BE DECEIVING IN MANY CASES IT WAS BETTER TO STAY AT HOME THANKS TO A STRONG DOLLAR AND WILD CURRENCY FLUCTUATIONS AFTER DANISH VOTERS REJECTED IN JUNE A PROPOSED TREATY FOR EUROPEAN ECONOMIC AND POLITICAL UNION RETURNS AS MEASURED IN US DOLLARS WERE DISMAL AS OF LATE YESTERDAY THE DOLLAR HAD RISEN 17 COMPARED WITH THE MARK AFTER BOTTOMING OUT IN SEPTEMBER THE US TREASURY MARKET FOR TOTAL 1992 RETURNS AS MEASURED IN LOCAL CURRENCY RANKED 12TH OUT OF 13 MAJOR GOVERNMENT BOND MARKETS ACCORDING TO JP MORGAN SECURITIES INC WITH A RETURN OF 724 BUT IF RETURNS ARE MEASURED IN DOLLARS THE US MARKET RANKS FOURTH TOTAL RETURNS INCLUDE COUPON PAYMENTS PRICE CHANGES AND IN THE CASE OF DOLLAR RETURNS CURRENCY GAINS OR LOSSES AS MEASURED IN US DOLLARS THE BIGGEST RETURNS FOR 1992 ACCORDING TO JP MORGAN CAME FROM JAPANESE GOVERNMENT BONDS WITH 1126 FOLLOWED BY THE NETHERLANDS WITH 947 AND BELGIUM WITH 822 THE BIGGEST LOSERS ACCORDING TO JP MORGAN WERE ITALY WITH NEGATIVE 1440 SWEDEN WITH NEGATIVE 1214 AND SPAIN WITH NEGATIVE 1010 JP MORGAN ADDED SWEDEN TO THE INDEX IN JULY SO ITS ACTUAL TOTAL YEAR RETURNS MAY BE DIFFERENT GERMAN GOVERNMENT BONDS THE DARLING OF MANY US INVESTORS INTERESTED IN EUROPEAN GOVERNMENT BONDS RETURNED JUST 616 THIS YEAR MIGHT BE BETTER ACCORDING TO THOMAS J STEFFANCI DIRECTOR OF FIXED INCOME AT FIDELITY INVESTMENTS OF BOSTON IF THE GROWTH AND INFLATION STAY THE SAME IN THE US THE MAJOR OPPORTUNITY FOR INVESTORS LOOKING FOR SHARP CHANGES IN INTEREST RATES IS GOING TO OCCUR IN THE EUROPEAN BOND MARKETS HE AND A NUMBER OF OTHER MONEY MANAGERS ARE MAKING BIG BETS THAT THE EUROPEAN BOND MARKETS WILL RALLY IN THE NEXT SIX MONTHS AS THE GERMAN CENTRAL BANK THE BUNDESBANK FINALLY VOTES TO EASE INTEREST RATES THAT'S THE GOOD NEWS SAYS MR STEFFANCI THE BAD NEWS IS THAT FROM A US DOLLAR INVESTOR VIEWPOINT THE RETURNS COULD BE ERODED SIGNIFICANTLY DUE TO DOLLAR STRENGTH RELATIVE TO FOREIGN CURRENCIES ACCORDING TO ARTHUR P STEINMETZ WHO MANAGES CLOSE TO 2 BILLION IN THE STRATEGIC INCOME FUND AT OPPENHEIMER FUNDS INC YOU CAN BE VERY BULLISH ON EUROPEAN BONDS BUT YOU DON'T WANT TO PUT ALL OF YOUR MONEY THERE BECAUSE CURRENCY VOLATILITY EXCEEDS BOND PRICE VOLATILITY BY A WIDE MARGIN HEDGING TO PROTECT AGAINST POTENTIAL LOSSES SAYS MR STEINMETZ COULD COST AS MUCH AS 6 IN ANNUAL COSTS PRICES OF MANY CORPORATE BONDS OUTPERFORMED COMPARABLE TREASURYS SENDING POSITIVE SIGNALS TO THE PRIMARY MARKET THAT INVESTORS HAVE CASH AND ARE READY TO PUT IT TO WORK ALTHOUGH TREASURY ISSUES GENERALLY WERE MODESTLY LOWER IN PRICE MOST INVESTMENTGRADE BONDS FINISHED 1/8 TO 1/4 STRONGER TRADERS SAID THERE WERE GAINS IN NEARLY EVERY PART OF THE CORPORATE MARKET PARTICULARLY LONGTERM AND INTERMEDIATETERM INDUSTRIALS WITH THE EXCEPTION OF SOME UTILITIES AND YANKEE ISSUES YANKEE BONDS ARE DOLLARDENOMINATED BONDS SOLD IN THE US BY FOREIGN COMPANIES OR GOVERNMENT ENTITIES TRADERS SAID YANKEE BONDS WEAKENED BECAUSE OF A LARGE SUPPLY OF CANADIAN SOVEREIGN ISSUES FILLING THE NEW ISSUE PIPELINE JUNK BONDS WERE EQUALLY STRONG AS INVESTORS CONTINUED TO SHOW A PREFERENCE FOR HIGHER YIELDING SECURITIES MOST JUNK BONDS WERE 1/8 STRONGER IN LATE TRADING AFTER RISING 1/4 EARLIER DEALERS WERE ENCOURAGED BY THE STRONG INVESTOR DEMAND FOR CORPORATE BONDS AND SAID IT WOULD HELP THEM SELL THE ESTIMATED 20 BILLION TO 30 BILLION OF NEW CORPORATE BONDS BEING MARKETED FOR SALE IN THE NEXT TWO MONTHS MORTGAGE SECURITIES ENDED TRADING WITH SMALL PRICE GAINS GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 1/2 FOR JANUARY DELIVERY ROSE 2/32 TO 100 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 1/2 GAINED 3/32 TO 100 25/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 1/2 ADVANCED 3/32 TO 100 19/32 THE MORTGAGE SECTOR OUTPERFORMED TREASURYS BECAUSE OF DEMAND FOR COLLATERAL FOR A BATCH OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES DEALS IN ADDITION THERE WAS RETAIL BUYING IN SOME SIGNIFICANT AMOUNTS THAT HELPED PULL YIELDS ON MORTGAGE SECURITIES CLOSER TO TREASURY YIELDS A MARKET PLAYER SAYS FANNIE MAE AND FREDDIE MAC ANNOUNCED 28 BILLION OF NEW REMICS GETTING THE NEW YEAR'S ISSUANCE OFF TO A STRONG START THE MARKET PLAYER WHO SAYS HE PREFERS TO BUY THE COLLATERAL RATHER THAN CLASSES OF REMIC SECURITIES IS TARGETING DEAL COUPONS FOR HIS PURCHASES THE SECURITIES HE SEES AS MOST LIKELY REMIC COLLATERAL IN COMING WEEKS ARE 30YEAR 8 15YEAR 7 1/2 AND PERHAPS SOME 20YEAR SECURITIES OWNING SUCH SECURITIES PROBABLY INCREASES THE VALUE OF A PORTFOLIO THAT LATER IS IN DEMAND BY DEALERS SEEKING COLLATERAL FOR NEW REMICS THEY CREATE 9301060047 930106 BUSINESS BRIEF FULTON FINANCIAL CORP CONCERN ESTIMATES EARNINGS CLIMBED ABOUT 56 IN 1992 FULTON FINANCIAL CORP'S PRESIDENT AND CHIEF EXECUTIVE RUFUS A FULTON JR SAID HE DOESN'T EXPECT THE COMPANY'S EARNINGS INCREASE FOR 1992 TO BE MUCH DIFFERENT FROM THE 56 INCREASE POSTED THROUGH THE FIRST NINE MONTHS FULTON FINANCIAL A LANCASTER PA BANK HOLDING COMPANY WITH TOTAL ASSETS OF ABOUT 21 BILLION EARNED 249 MILLION OR 192 A SHARE IN 1991 AN ANNUAL INCREASE OF 56 WOULD PRODUCE PERSHARE EARNINGS OF ABOUT 203 A TRADITIONALLY CONSERVATIVE LENDER FULTON FINANCIAL REPORTED NET INCOME OF 198 MILLION OR 151 A SHARE THROUGH THE FIRST NINE MONTHS THE COMPANY'S LOAN LOSS PROVISION WAS A MODEST 23 MILLION DURING THE FIRST NINE MONTHS AND CHARLES J NUGENT CHIEF FINANCIAL OFFICER ESTIMATES THAT THE FOURTHQUARTER PROVISION WILL BE IN LINE WITH THE 856000 PROVISION FOR THE THIRD QUARTER FULTON FINANCIAL HAD A LOAN PORTFOLIO OF 14 BILLION AT THE END OF THE THIRD QUARTER 9301060046 930106 WORLD MARKETS STOCK PRICES FALL IN TOKYO AND SLUMP IN LONDON BUT RALLY IN FRANKFURT AS FRESH CASH EMERGES A WALL STREET JOURNAL NEWS ROUNDUP IN THE TOKYO EXCHANGE'S FIRST FULLDAY SESSION OF THIS YEAR STOCK PRICES FINISHED LOWER THOUGH THEY RECOVERED FROM THE DAY'S LOWS LONDON EQUITIES SANK HURT BY LATEAFTERNOON SELLING LINKED TO STOCKINDEX FUTURES BUT FRANKFURT SHARES RALLIED 16 IN A POSTHOLIDAY MARKET FLUSH WITH INSTITUTIONAL CASH IN TOKYO THE NIKKEI 225STOCK INDEX WHICH GAINED 6913 POINTS IN MONDAY'S HALFDAY SESSION LOST 15150 TO 1684258 AFTER HITTING A LOW OF 1668847 THE NIKKEI FINISHED THE WEDNESDAY MORNING SESSION 5629 POINTS LOWER AT 1678629 TUESDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT 160 MILLION SHARES COMPARED WITH 801 MILLION SHARES IN THE HALFDAY SESSION ON MONDAY RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 667202 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH DECLINED 185 POINTS MONDAY DROPPED 768 TO 129813 AS MOST INDIVIDUAL AND INSTITUTIONAL INVESTORS CONTINUED TO STAY ON THE SIDELINES WHILE A LACK OF BUYING INCENTIVES INTENSIFIED BEARISH SENTIMENT ARBITRAGERS DOMINATED ACTIVITY AFTER REACHING AN INTRADAY HIGH OF 1701334 SHARE PRICES SLID IN THE AFTERNOON ON A NEWS REPORT THAT THE FINANCE MINISTRY WOULDN'T ALLOW INVESTMENT TRUSTS TO POSTPONE MATURITIES AN ACTION THAT WOULD FORCE THE TRUSTS TO UNLOAD LARGE EQUITY HOLDINGS ONTO A MARKET ALREADY LARGELY BEREFT OF BUYERS THEN A REPORT THAT THE MINISTRY HAD DENIED THE REPORT SENT THE NIKKEI CLIMBING 150 POINTS IN THE FINAL HALFHOUR OF TRADING IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLUMPED 279 POINTS TO 28336 JUST ABOVE THE DAY'S LOW OF 28301 THE FT 30STOCK INDEX SANK 208 POINTS TO 21891 VOLUME WAS 7691 MILLION SHARES COMPARED WITH 6066 MILLION SHARES A DAY EARLIER LONDON STOCKS MOSTLY MEANDERED ON EITHER SIDE OF UNCHANGED FOLLOWING SEVERAL RECENT SESSIONS OF RECORD TRADING AND CLOSING HIGHS FOR THE 100SHARE BAROMETER WHICH ROSE 24 IN THE FOURTH QUARTER AND 24 IN DECEMBER MAKING IT RIPE FOR THE RETREAT TUESDAY ON WIDE SELLING OF THE MARCH FUTURES CONTRACT AND WITH FEW CORPORATE OR ECONOMIC DEVELOPMENTS TO BREATHE LIFE INTO TRADING INVESTORS WERE CONTENT TO LOCK IN PROFITS FOR NOW AND AWAIT FURTHER DEVELOPMENTS LONDON INVESTORS ALSO WORRIED ABOUT A SPATE OF CORPORATE RIGHTS ISSUES THOUGH SOME PARTICIPANTS SAID THAT TUESDAY'S SETBACK WAS TEMPORARY AND THAT STOCKS COULD MOVE HIGHER AS IMPROVED FOURTHQUARTER EARNINGS ARE REPORTED A BRITISH GOVERNMENT REPORT THAT THE MONEY SUPPLY ROSE A PROVISIONAL 26 IN DECEMBER FROM A YEAR EARLIER HAD LITTLE IMMEDIATE EFFECT ON STOCK PRICES IN FRANKFURT THE DAX 30STOCK INDEX SURGED 2509 POINTS TO 155642 NEAR THE INTRADAY HIGH OF 155900 ALL OF THE DAX ISSUES ADVANCED THE RALLY WAS ATTRIBUTED PARTLY TO HOPES THAT RENEWED SPECULATIVE ATTACKS ON THE FRENCH FRANC MIGHT SPUR THE GERMAN BUNDESBANK THE CENTRAL BANK TO LOWER GERMAN INTEREST RATES IN SOLIDARITY WITH THE FRANC AT THE CENTRAL BANK'S MEETING TOMORROW BUT WITH BEARS IN A WAITANDSEE MOOD AND WITH SIGNIFICANT VOLUME RETURNING TO THE FRANKFURT MARKET THIS CREATED A TENDENCY TO BUY RATHER THAN SELL AND BOOSTED PRICES AND SOME PARTICIPANTS SAID THE BUNDESBANK WOULDN'T ABANDON ITS INFLATION FIGHT SO SOON BY EASING RATES SIMPLY TO RESCUE THE FRENCH FRANC FROM PRESSURE SHARES LEADING THE RALLY WERE IN THE AUTO AND HEAVYENGINEERING SECTORS WHICH HAVE BEEN LANGUISHING FOR MORE THAN A YEAR AND A HALF PARIS SHARE PRICES UNDER PRESSURE EARLY IN THE SESSION IN RESPONSE TO CURRENCY WORRIES GRADUALLY MOVED HIGHER AMID THIN TRADING AND ENDED WITH MODERATE GAINS AS THE FRENCH FRANC APPEARED TO STABILIZE INVESTORS WERE JITTERY AS GERMANY AND FRANCE ACTED TO SUPPORT THE FRANC WHICH WAS HIT BY RENEWED SPECULATIVE PRESSURE MONDAY THE BANK OF FRANCE EFFECTIVELY RAISED ITS SHORTTERM LENDING RATE YESTERDAY WHILE THE GERMAN GOVERNMENT AND CENTRAL BANK REAFFIRMED THEIR COMMITMENT TO THE CURRENT FRANCMARK RATE WHILE THE MOVES DIDN'T REMOVE THE FRANC FROM DANGER IT DID CALM THE MARKETS A BIT AND INVESTORS TURNED THEIR FOCUS TO THE GERMAN BUNDESBANK'S COUNCIL MEETING TOMORROW WITH HOPES OF LOWER INTEREST RATES AMSTERDAM STOCKS ROSE ON SUPPORT FROM A FIRMER DOLLAR AND EXPECTATIONS OF A LENDINGRATE CUT IN GERMANY THIS WEEK MILAN SHARES POSTED SLIGHT GAINS AFTER A MIXED SESSION WITH THIN TURNOVER IN MADRID WHERE MARKETMOVING NEWS WAS ABSENT STOCKS SURGED ON SPECULATION THAT A CUT IN GERMAN INTEREST RATES WOULD FINALLY MATERIALIZE THIS WEEK IN A HALFDAY SESSION AHEAD OF A HOLIDAY STOCKHOLM EQUITIES JUMPED ON STRONG BUYING BY FOREIGN INVESTORS AND ON A FIRMER DOLLAR ZURICH PRICES ADVANCED IN ACTIVE TRADING BUOYED BY A STRONG DOLLAR AND LOWER SWISS INTEREST RATES THOUGH THEY FINISHED OFF THE DAY'S HIGHS BECAUSE OF PROFITTAKING BRUSSELS SHARES RALLIED 12 IN LINE WITH GAINS ON MOST OTHER EUROPEAN MARKETS IN SYDNEY WHERE STOCKS HAVE EXHIBITED STRENGTH RECENTLY A LATE ROUND OF PROFITTAKING LEFT PRICES LOWER SINGAPORE SHARES SURGED LED BY BLUE CHIPS ON CONTINUED OPTIMISM ABOUT THE ECONOMY IN SEOUL WHERE PRICES HAVE JUMPED RECENTLY EQUITIES FELL AS SENTIMENT TURNED CAUTIOUS HONG KONG SHARES REBOUNDED ON BUYING BY EUROPEAN INVESTORS FOLLOWING A REPORT THAT SUGGESTED THE BRITISH COLONY'S GOVERNMENT WAS READY TO WATER DOWN ITS DEMOCRATIC REFORM PACKAGE A LONDON NEWS REPORT ON MONDAY QUOTED HONG KONG GOV CHRIS PATTEN AS SAYING COMPROMISE WAS PERFECTLY POSSIBLE ON HIS PROPOSALS WHICH HAVE ANGERED CHINA AS IT PREPARES TO RESUME SOVEREIGNTY OVER THE TERRITORY IN 1997 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 9301060045 930106 TREASURY ISSUES CIRCULAR ON SECURITIES AUCTIONS WASHINGTON THE TREASURY DEPARTMENT ISSUED A COMPENDIUM OF RULES GOVERNING ITS SECURITIES AUCTIONS THE SOCALLED UNIFORM OFFERING CIRCULAR LARGELY A COMPILATION AND FINETUNING OF EXISTING AUCTIONS RULES WAS PUBLISHED IN FINAL FORM IN THE FEDERAL REGISTER THE DECISION TO PULL ALL AUCTION RULES TOGETHER FOR THE FIRST TIME IN ONE DOCUMENT WAS ONE OF THE STEPS UNDERTAKEN BY THE TREASURY IN THE WAKE OF THE SALOMON BROTHERS INC BOND SCANDAL THE TREASURY SAID IT EXPECTS ANY FUTURE CHANGES IN ITS AUCTION RULES TO BE MADE BY AMENDING THE OFFERING CIRCULAR BUT RESERVED THE RIGHT TO CHANGE THE TERMS AND CONDITIONS OF ANY NEW OFFERINGS WITHOUT FIRST PUBLISHING SUCH CHANGES FOR PUBLIC COMMENT THE FINAL OFFERING CIRCULAR DELETES A PROVISION CONTAINED IN A PROPOSAL PUT OUT FOR COMMENT IN SEPTEMBER IN WHICH THE TREASURY PROPOSED TO MAKE BIDDERS ASSUME THE RISK FOR ANY DISRUPTION OR FAILURE IN COMPUTERIZED BIDDING AT TREASURY AUCTIONS WITH THE TREASURY AUCTION SYSTEM SCHEDULED TO BE AUTOMATED SOON THE PUBLIC SECURITIES ASSOCIATION WARNED THAT THE PROPOSAL COULD DISCOURAGE FIRMS FROM USING THE COMPUTERIZED SYSTEM THE BOND TRADE GROUP ARGUED THAT A COMPUTER FAILURE SHOULDN'T INVALIDATE AN OTHERWISE VALID BID THE TREASURY CITED SUCH OBJECTIONS IN DROPPING THE PROPOSAL 9301060044 930106 AS CONGRESS CONVENES HOUSE PLUNGES INTO BITTER BATTLE ON VOTING PRIVILEGES BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NEW CONGRESS CONVENED IN A DAY OF CEREMONY DEMONSTRATING HISTORIC CHANGE AND THE DOGGED PARTISAN WARFARE THAT HAS SO FRUSTRATED THE INSTITUTION IN RECENT YEARS SENATE LEADERS SIDESTEPPED A DIVISIVE FIGHT OVER THE SEATING OF TWO REPUBLICANS WHOSE ELECTIONS HAVE BEEN CHALLENGED BECAUSE OF ALLEGED CAMPAIGN IRREGULARITIES OR ETHICAL MISCONDUCT BUT ON THE OTHER SIDE OF THE CAPITOL THE HOUSE PLUNGED INTO BITTER DEBATE WITHIN MINUTES OF SWEARING IN THE LARGEST FRESHMAN CLASS IN FOUR DECADES WHAT AN ABYSMAL WAY TO BEGIN THE CLINTON ADMINISTRATION SAID REP HENRY HYDE R ILL AS DEMOCRATS OVERRODE CONSERVATIVE PROTESTS TO RULES CHANGES THAT EXTENDED LIMITED VOTING PRIVILEGES TO REPRESENTATIVES OF THE DISTRICT OF COLUMBIA PUERTO RICO AND THREE US TERRITORIES IN THE PAST THESE DELEGATES AND COMMISSIONERS HAVE BEEN ABLE TO VOTE ONLY IN HOUSE COMMITTEES BUT THE CHANGES NOW WOULD EXTEND THIS RIGHT TO LIMITED CIRCUMSTANCES IN FLOOR DEBATES BEFORE THE FULL CHAMBER BECAUSE ALL FIVE OF THE REPRESENTATIVES ARE DEMOCRATS REPUBLICANS DENOUNCED THE MOVE AS A POWER GRAB BUT THE MAJORITY ARGUED THAT IT ONLY SOUGHT TO GIVE THEM SOME VOICE IN A LEGISLATIVE PROCESS THAT OFTEN AFFECTS THEIR CONSTITUENTS AS A PRACTICAL MATTER MUCH OF HOUSE FLOOR DEBATE TAKES PLACE UNDER A PARLIAMENTARY DEVICE KNOWN AS THE COMMITTEE OF THE WHOLE BUT AMENDMENTS ADOPTED HERE ARE SUBJECT TO A SECOND VOTE WHEN THE UNDERLYING BILL IS REPORTED BACK TO THE FULL CHAMBER FOR FINAL ACTION THE RULE CHANGES NOW APPLY ONLY TO THIS FIRST STAGE AND DEMOCRATS AGREED THAT IF THE FIVE NEW VOTES PROVE TO BE DECISIVE IN ANY CASE THE FULL HOUSE WOULD IMMEDIATELY TAKE UP THE MATTER FOR RECONSIDERATION THIS COMPROMISE WAS ENOUGH TO MEET QUALMS WITHIN THE PARTY'S OWN RANKS BUT MORE THAN TWO DOZEN DEMOCRATS STILL OPPOSED THE LEADERSHIP ON ADOPTION OF THE PACKAGE THE NARROW 221199 ROLL CALL FOLLOWED A SERIES OF SKIRMISHES AS REPUBLICANS SOUGHT UNSUCCESSFULLY TO FORCE A CLEAR UPANDDOWN VOTE ON THE ISSUE AND MINORITY WHIP NEWT GINGRICH R GA WARNED THE OUTCOME WILL ONLY CONTRIBUTE TO FURTHER PARLIAMENTARY WARFARE THIS WINTER ALTHOUGH DEMOCRATS HAVE BEEN STUNG BY EDITORIAL CRITICISM THEY HAVE MET FROM PROMINENT NEWSPAPERS THE LEADERSHIP ARGUED THE INITIATIVE WAS NEEDED TO MEET A MORAL COMMITMENT TO MAKE THE CHAMBER MORE REFLECTIVE OF THE NATION THE PROPOSAL HAD STRONG SUPPORT FROM THE RECORD NUMBER OF BLACK AND HISPANIC MEMBERS ELECTED IN NOVEMBER MAKING IT THAT MUCH HARDER FOR THE PARTY TO BACK AWAY AS IF ANTICIPATING THE BITTER DEBATE SPEAKER THOMAS FOLEY SOUGHT VAINLY IN HIS OPENING REMARKS TO TURN ATTENTION TOWARD THE LARGER TASKS FACING LAWMAKERS THE AMERICAN PEOPLE HAVE SIGNALED THEIR IMPATIENCE WITH THE PACE OF REFORM AND CHANGE THERE IS AN IMPATIENCE THAT WE HAVE NOT MOVED FAST ENOUGH OR EFFECTIVELY ENOUGH SAID THE WASHINGTON STATE DEMOCRAT THIS CONGRESS WILL HAVE A GREAT CHALLENGE AND GREAT OPPORTUNITY IN SEEKING TO RESTORE THE CONFIDENCE OF THE AMERICAN PEOPLE IN THE LEGISLATIVE BRANCH AND ITS ASSOCIATION WITH THE NEW PRESIDENT BILL CLINTON WITH EVEN FEWER VOTES DIVIDING THE PARTIES THE SENATE SEEMED MORE MINDFUL OF THE NEED TO AVOID IMMEDIATE CONFLICT REPUBLICAN SENS PAUL COVERDELL OF GEORGIA AND BOB PACKWOOD OF OREGON WERE SEATED WITHOUT PREJUDICE UNDER A 1950S PRECEDENT THAT SERVED TO SATISFY THE GOP WHILE GIVING SOME RECOGNITION TO CHALLENGES BEING MOUNTED AGAINST BOTH MEN MR COVERDELL WHO NARROWLY OUSTED DEMOCRATIC SEN WYCHE FOWLER HAS BEEN ACCUSED OF VIOLATING FEDERAL CAMPAIGN LAWS IN THE FINANCING OF HIS CAMPAIGN AND PETITIONS HAVE BEEN FILED WITH THE SENATE FROM OREGON VOTERS CITING COMPLAINTS OF ALLEGED SEXUAL HARRASSMENT BY MR PACKWOOD THAT ARE THE SUBJECT OF A SENATE ETHICS COMMITTEE INQUIRY REPUBLICANS IN TURN SOUGHT TO PLAY DOWN THEIR DIFFERENCES WITH DEMOCRATS OVER THE SLATE OF CABINET NOMINEES PENDING BEFORE THE CHAMBER I'M NOT A HIT MAN VOWED A SMILING SEN TRENT LOTT WHO HAS TAKEN A LEAD ROLE IN COORDINATING THE GOP'S REVIEW OF MR CLINTON'S CHOICES AND WHILE EXPRESSING CONCERN THAT NOT ENOUGH TIME HAS BEEN PROVIDED FOR BACKGROUND CHECKS BY THE FEDERAL BUREAU OF INVESTIGATION THE MISSISSIPPI REPUBLICAN WAS HESITANT TO DEMAND ANY DELAY IN CONFIRMATION HEARINGS WHICH WERE TO BEGIN INFORMALLY THIS MORNING WITH 43 VOTES THE SENATE GOP MINORITY IS WELLPOSITIONED TO SUSTAIN A FILIBUSTER BUT CONSERVATIVES ARE ANXIOUS ABOUT APPEARING TOO PARTISAN FOR FEAR OF DRIVING MODERATES OVER TO THE DEMOCRATIC RANKS HOUSE REPUBLICANS OUTNUMBERED BY MORE THAN 80 VOTES HAVE LESS PROMISE OF BEING A MAJOR FORCE AND THE PARTISAN BATTLES YESTERDAY SERVED THEIR PURPOSE BY BOTH IDENTIFYING SPLITS IN THE MAJORITY AND SETTING ASIDE DIVISIONS OF THEIR OWN ONLY THIS WEEK REP STEVE GUNDERSON WHO HAD BEEN A CHIEF DEPUTY WHIP FOR THE PAST FOUR YEARS STEPPED DOWN FROM HIS POST AND WARNED THAT THE HOUSE REPUBLICAN LEADERSHIP IS BECOMING INCREASINGLY HARD RIGHT I DO NOT BELIEVE OUR PRESENT LEADERSHIP REPRESENTED MAINSTREAM REPUBLICANS IN THIS COUNTRY OR EVEN IN THE CONGRESS SAID MR GUNDERSON IN COMMENTS SINCE THE WISCONSIN REPUBLICAN HAS ATTRIBUTED MORE OF THE DISCONTENT TO LAST SUMMER'S NATIONAL CONVENTION THAN THE LEADERSHIP OF MR GINGRICH BUT HE HAS ARGUED TOO THAT REPUBLICANS SEEM INTENT ON PURSUING AN AGENDA OF RIGID CONFRONTATION AND OPPOSITION I WAS CRITICAL OF THE DEMOCRATS FOR DOING THIS TO PRESIDENT BUSH AND I CAN'T STRATEGIZE TO DO THE SAME TO PRESIDENTELECT CLINTON 9301060043 930106 MEDIA LIBERTY MEDIA PLANS A NETWORK TO RIVAL ESPN BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK POSING THE FIRST SERIOUS CHALLENGE TO ESPN'S DOMINANCE IN SPORTS PROGRAMMING LIBERTY MEDIA CORP HAS BOUGHT OUT ITS LARGEST PARTNER IN THE PRIME NETWORK REGIONAL SPORTS CHANNELS AND IS PRESSING A MERGER WITH ARCHRIVAL SPORTSCHANNEL AMERICA LIBERTY'S MOVES IF SUCCESSFUL WOULD CREATE A CABLE SPORTS NETWORK SECOND ONLY TO ESPN AND PROVIDE NATIONAL ADVERTISERS ANOTHER VEHICLE FOR REACHING CONSUMERS ESPN IS 80OWNED BY CAPITAL CITIES/ABC INC THE MOVE IS THE LATEST IN LIBERTY'S STRATEGY TO ACQUIRE A PORTFOLIO OF POPULAR CATEGORIES OF CABLE PROGRAMMING LAST MONTH THE COMPANY AGREED TO BUY CONTROL OF THE HOME SHOPPING NETWORK THE NATION'S LARGEST TV SHOPPING CHANNEL THE PROPOSED DEAL OPENS THE DOOR FOR A MERGER BETWEEN HSN AND ITS ONLY RIVAL QVC NETWORK IN WHICH LIBERTY OWNS A SUBSTANTIAL STAKE LIBERTY IS A SPINOFF OF CABLE GIANT TELECOMMUNICATIONS INC PRIME IS THE COUNTRY'S LARGEST REGIONAL SPORTS NETWORK WITH 15 AFFILIATES THAT SERVE 26 MILLION SUBSCRIBERS SPORTSCHANNEL AMERICA CURRENTLY OWNED BY GENERAL ELECTRIC CO'S NBC UNIT AND CABLEVISION SYSTEMS CORP IS THE SECOND LARGEST REGIONAL CABLE SPORTS NETWORK REACHING 18 MILLION SUBSCRIBERS THROUGH 10 AFFILIATES BY COMPARISON ESPN DRAWS 602 MILLION CUSTOMERS IN A FIRST STEP TOWARD CHALLENGING ESPN LIBERTY RAISED ITS STAKE IN PRIME'S PARENT HOUSTONBASED PARTNERSHIP AFFILIATED REGIONAL COMMUNICATIONS LTD TO 77 FROM ROUGHLY 60 IN THE SIMPLEST TERMS THE TRANSACTION COMPLETED DEC 31 WAS EFFECTED THROUGH THE REDEMPTION BY AFFILIATED OF THE STAKE HELD BY PARTNER BILL DANIELS A CABLE INDUSTRY VETERAN THE TRANSACTION LEFT LIBERTY AS THE SOLE GENERAL PARTNER THE REMAINING 23 BELONGS TO LIMITED PARTNERS JOHN J MCMULLEN WHO IS FORMER OWNER OF THE HOUSTON ASTROS AND GROUP W SERVICES CORP FINANCIAL TERMS WEREN'T DISCLOSED BUT BASED ON ARC'S ESTIMATED VALUE OF 200 MILLION THE TRANSACTION HAD AN INDICATED VALUE OF 40 MILLION THE TRANSACTION DIDN'T INVOLVE OTHER HOLDINGS OF MR DANIELS WHICH INCLUDE THE LOS ANGELESBASED PRIME TICKET REGIONAL SPORTS NETWORK AN INTEREST IN THE LOS ANGELES LAKERS AND MAJOR CABLE SYSTEM HOLDINGS IN SOUTHERN CALIFORNIA I LOOK FORWARD TO WORKING UNDER LIBERTY'S DIRECTION AND MOVING AGGRESSIVELY AHEAD IN THE REGIONAL SPORTS BUSINESS SAID ED FRAZIER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AFFILIATED WITH THE PRIME DEAL COMPLETED LIBERTY NOW HAS TURNED ITS FULL ATTENTION TO THE LONGANTICIPATED MERGER OF THE OPERATION WITH SPORTSCHANNEL AMERICA PRIME HAS BEEN IN ONAGAIN OFFAGAIN DISCUSSIONS WITH SPORTSCHANNEL FOR MORE THAN TWO YEARS NOW WITH NO TANGIBLE RESULTS MR DANIELS AND PRICE AMONG OTHER FACTORS HAD BEEN HURDLES TO COMPLETING SUCH A MERGER PEOPLE FAMILIAR WITH THE TALKS SAID PRIME'S OWNED AND AFFILIATED REGIONAL SPORTS NETWORKS MUCH LIKE LOCAL BROADCAST AFFILIATES PRODUCE SELECTED LOCAL AND REGIONAL EVENTS THEY AUGMENT THE LOCAL PROGRAMS WITH THE NATIONAL AND INTERNATIONAL PROGRAMS FROM PRIME NETWORK A MERGER WOULD ALLOW AFFILIATES OF SPORTSCHANNEL AND PRIME TO TAP INTO A SINGLE FEED OF SUCH NATIONAL PROGRAMMING SPORTSCHANNEL AMERICA COULDN'T BE REACHED TO COMMENT A LIBERTY SPOKESMAN DECLINED TO COMMENT ON MERGER TALKS BUT SAID AN UNSPECIFIED ANNOUNCEMENT WOULD BE FORTHCOMING ROGER WERNER PRESIDENT OF DANSPORTS LP WHICH IS CONTROLLED BY MR DANIELS ALSO DECLINED TO COMMENT IN DETAIL HE NOTED HOWEVER THAT AS A NATURAL EVOLUTION OF THE BUSINESS SOME COMBINATION OF THE MAJOR PLAYERS IS INEVITABLE 9301060042 930106 MARKETING & MEDIA ADVERTISING REEBOK SIGNS UP THE NEWEST STAR IN BASKETBALL IN 15 MILLION PACT BY KEVIN GOLDMAN TIRED OF AIR JORDAN AND THE INCESSANT ADVERTISEMENTS FOR NIKE BRACE FOR THE SHAQ ATTAQ PROFESSIONAL BASKETBALL'S NEWEST STAR SHAQUILLE O'NEAL THE 7FOOT1INCH 303POUND ROOKIE CENTER FOR THE ORLANDO MAGIC STARS IN A NEW SERIES OF COMMERCIALS FOR NIKE RIVAL REEBOK INTERNATIONAL LTD THE 15SECOND TEASERS PRODUCED BY CHIAT/DAY BEGAN RUNNING THIS WEEK AND FORESHADOW AN EXPECTED BLITZ LATER IN THE FIRST QUARTER TO INTRODUCE A LINE OF SNEAKERS AND CLOTHING BASED ON THE NEW STAR THE NEW COMMERCIALS ARE PART OF AN ESTIMATED 15 MILLION FIVEYEAR AGREEMENT FOR THE NEW STAR WHICH REEBOK SIGNED BEFORE MR O'NEAL HAD EVEN PLAYED HIS FIRST GAME AS A PRO REEBOK CLEARLY HOPES TO TURN THE TOWERING BUT UNTESTED ROOKIE INTO THE ENDORSEMENT INDUSTRY'S NEXT MICHAEL JORDAN THE STOUGHTON MASS SNEAKER MAKER IS AGGRESSIVELY TRYING TO ELBOW IN ON NIKE INC'S LEAD IN THE 605 BILLION MARKET FOR ATHLETIC SHOES REEBOK RANKS NO 2 WITH A 244 SHARE COMPARED WITH NIKE'S 299 SHARE NOT SINCE MICHAEL JORDAN BOUNDED INTO THE NATIONAL BASKETBALL ASSOCIATION IN 1984 HAS A NEWCOMER LANDED SUCH A RICH ENDORSEMENT AGREEMENT IN FACT NIKE AND REEBOK FOUGHT OVER MR O'NEAL'S SERVICES BUT REEBOK WITH NO BOX OFFICE STARS IN ITS STABLE OFFERED MORE OPPORTUNITY READ CASH REEBOK WILL SPEND UPWARD OF 10 MILLION ON TELEVISION AND PRINT ADS TO INTRODUCE THE SHAQ ATTAQ PRODUCT LINE WHICH WILL INITIALLY FEATURE ONLY ONE SHOE ENTRY AND SOME APPAREL THE NEW COMMERCIAL CARRIES A RAP SONG ACTUALLY WRITTEN AND PERFORMED BY MR O'NEAL WHO WEARS A SIZE 20EEESHOE THE SONG'S LYRICS DON'T FAKE A FUNK ON A NASTY DUNK PERHAPS THE ROOKIE SHOULD HOLD ON TO HIS DAY JOB THE NEW SPOTS WILL FEATURE MR O'NEAL WITH LEGENDARY CENTERS FROM BASKETBALL'S PAST INCLUDING FORMER LOS ANGELES LAKERS STAR WILT CHAMBERLAIN AND KAREEM ABDULJABBAR AS WELL AS PORTLAND TRAIL BLAZERS STAR BILL WALTON BOSTON CELTICS LEGEND BILL RUSSELL AND UNIVERSITY OF CALIFORNIA LOS ANGELES COACH JOHN WOODEN REEBOK'S AGREEMENT WITH SHAQ O'NEAL ISN'T CONSIDERED A MAJOR RISK EVEN THOUGH IT WAS COMPLETED BEFORE THE COLLEGE STAR FROM THE LOUISIANA STATE UNIVERSITY HAD SO MUCH AS MADE A SINGLE DRIBBLE ON A PROFESSIONAL COURT SHAQ IS A MANCHILD BURSTING ONTO THE SCENE WITH THE POTENTIAL OF BEING THE SPORTS SUPERSTAR TO TAKE US INTO THE NEXT CENTURY BOASTS LEONARD ARMATTO MR O'NEAL'S ATTORNEY AND ADVISER WHO HEADS THE LOS ANGELES COMPANY MANAGEMENT PLUS REEBOK NEEDED TO GET A HIGHPROFILE PERSONALITY TO COMPETE WITH THE SUCCESS OF MICHAEL JORDAN AND NIKE SAYS JOHN HORAN WHO PUBLISHES THE SPORTING GOODS INTELLIGENCE NEWSLETTER REEBOK'S TIMING OF SIGNING THIS GUY UP COULDN'T BE BETTER IT WAS A NO BRAINER' TO GO AFTER SHAQ HE WAS BEING TRIPLETEAMED WHILE AT LSU THE NATIONAL BASKETBALL ASSOCIATION ONE OF THE SAVVIEST MARKETERS SAW ITS TWO MAJOR STARS LARRY BIRD AND EARVIN MAGIC JOHNSON RETIRE LAST YEAR THE NBA NEEDED A NEW MARQUEE STAR AND IT FOUND SUCH A HOT PROPERTY IN MR O'NEAL HE'S FILLING SEATS IN ARENAS SAYS NOVA LANKTREE PRESIDENT OF LANKTREE PASSPORT CELEBRITY NETWORK INC IN NORTHBROOK ILL HE'S GOT PIZAZZ AND THE SMILE AND THE CHARISMA A LOT OF ROOKIES WHO WERE BIG MEN ON CAMPUS TAKE TIME TO ADJUST IN THE BIG LEAGUES NOT SHAQ HE CAME OUT OF THE GATE LIKE A BAT OUT OF HELL UNDOUBTEDLY MR O'NEAL'S REEBOK COMMERCIALS WILL BE WATCHED CLOSELY BY OTHER COMPANIES CONTEMPLATING SPENDING BIG BUCKS TO SIGN HIM UP THEY WILL BE JUDGING ON HOW PHOTOGENIC AND ARTICULATE HE IS IN EFFECT HIS REEBOK SPOTS AMOUNT TO AN AUDITION REEL ALBEIT A HUGELY EXPENSIVE ONE HE MAY BE THE NEXT GREAT ENDORSER ANOTHER AGREEMENT IS A MULTIYEAR MULTIMILLION DOLLAR CONTRACT WITH SPALDING SPORTS WORLDWIDE BASED IN CHICOPEE MASS HIS ARRANGEMENT INVOLVES A LINE OF AUTOGRAPHED BASKETBALLS BACKBOARDS AND INSTORE APPEARANCES HE ALSO HAS BEEN SIGNED BY HASBRO'S KENNER PRODUCTS FOR A TOY LINE OF ACTION FIGURES BY VIDEOGAME MAKER ELECTRONIC ARTS AND FOR HANDHELD VIDEO GAMES FROM TIGER ELECTRONICS IN ADDITION MR O'NEAL IS WEIGHING COMPETING OFFERS FROM COCACOLA CO AND PEPSICO SAYS A PERSON CLOSE TO THE SHAQ MAN EVERYONE WILL SOON GO AFTER HIM SAYS MS LANKTREE THERE'LL BE BIDDING WARS LIKE YOU'VE NEVER SEEN FOR YEARS HE IS THE NEW AMBASSADOR TO BASKETBALL NESTLE SA IS INTRODUCING THE NEXT EPISODE IN THE LOVE SAGA OF TONY AND SHARON THOSE COY NEIGHBORS WITH AN APPARENT ADDICTION TO EACH OTHER AND TASTER'S CHOICE COFFEE WHEN LAST WE SAW THEM TONY WAS IN A BIT OF A SNIT OVER FINDING A STRANGE MALE IN SHARON'S APARTMENT THE NEW COMMERCIAL AIRING TONIGHT DURING ABC'S HOME IMPROVEMENT PUTS THE COUPLE'S DRAWNOUT FLIRTATION BACK ON COURSE BY CONFIRMING WHAT VIEWERS HAVE ALREADY GUESSED THAT MYSTERY MAN WAS SHARON'S BROTHER BUT THE NEW SPOT LEAVES THE STORY DANGLING AGAIN WILL TONY INVITE SHARON ALONG ON HIS BUSINESS TRIP TO PARIS THE EPISODE IS THE SIXTH IN A SERIES FROM INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK IRWIN WARREN EXECUTIVE VICE PRESIDENT AND DEPUTY CREATIVE DIRECTOR AT MCCANN SAYS THE TWOYEARLONG SERIES HAS SUCCEEDED IN DRIVING UP TASTER'S CHOICE SALES BY 10 AND TARGETING 40SOMETHING CONSUMERS THE MUCHMALIGNED SCENT STRIP WHOSE ODORIFEROUS PRESENCE ON PERFUME ADS IN MAGAZINES HAS PROMPTED LOUD COMPLAINTS FROM READERS AND BANS FROM PUBLISHERS MAY BE A THING OF THE PAST THERMEDICS INC A WOBURN MASS MANUFACTURER AND SCENT SEAL INC A LOS ANGELES MARKETING FIRM ARE BILLING THEIR SCENT SEAL SCENT DELIVERY SYSTEM AS A LEAKPROOF ALTERNATIVE TO PAPER SCENT STRIPS THE SCENT SEAL PACKET IS SAID TO BE HERMETICALLY SEALED READERS PEEL OFF THE COVER TO REVEAL A GEL THAT SUPPOSEDLY PROVIDES A PURER VERSION OF THE FRAGRANCE THAN THAT OF A PAPER STRIP GIORGIO BEVERLY HILLS A UNIT OF AVON INC IS PUTTING THE NEW TECHNOLOGY TO THE TEST IN THE MARCH ISSUE OF VOGUE IN AN AD FOR ITS NEW FRAGRANCE WINGS SETTLEMENT HILL & KNOWLTON WPP GROUP'S BIG PUBLIC RELATIONS UNIT SETTLED ITS LAWSUIT AGAINST THREE FORMER EMPLOYEES AND A RIVAL WASHINGTON LOBBYING FIRM CAPITOLINE INTERNATIONAL GROUP LTD TERMS WEREN'T DISCLOSED THE SUIT ASSERTED THAT THE FORMER EMPLOYEES TRIED TO LURE AWAY CLIENTS WHILE STILL IN H&K'S EMPLOY ACCORDING TO IDENTICAL STATEMENTS ISSUED BY H&K AND CAPITOLINE H&K DROPPED ITS SUIT IN RETURN FOR AGREEMENTS PROTECTING CLIENT AND EMPLOYEE RELATIONSHIPS OF BOTH FIRMS AND A CASH SETTLEMENT BOTH PARTIES DECLINED TO ELABORATE WHO'S NEWS GREY ADVERTISING NEW YORK NAMED NANCY BACHRACH CAROLYN CARTER CAROL HERMAN AND JERRY ZARET EXECUTIVE VICE PRESIDENTS OMNICOM GROUP'S BBDO NAMED MICHAEL PATTI AN EXECUTIVE VICE PRESIDENT YOUNG & RUBICAM NEW YORK NAMED JOHN SWAN EXECUTIVE VICE PRESIDENT 9301060041 930106 MOTOROLA IN FUNDING PACTS FOR TELEPHONE NETWORK SCHAUMBURG ILL MOTOROLA INC SAID IT SECURED PRELIMINARY AGREEMENTS WITH POTENTIAL INVESTORS OFFERING TO HELP FINANCE ITS PROPOSED 337 BILLION SATELLITEBASED GLOBAL TELEPHONE NETWORK CLEARING THE PLAN'S FIRST MAJOR HURDLE THE COMPANY DIDN'T PROVIDE MANY DETAILS BUT THE ANNOUNCEMENT SIGNALS THAT THE PROJECT IS MOVING FORWARD THE PRELIMINARY AGREEMENTS ARE NONBINDING AND IN SOME CASES STILL NEED APPROVALS FROM FOREIGN GOVERNMENTS AND INVESTORS GROUPS ACCORDING TO A SPOKESMAN FOR THE SOCALLED IRIDIUM PROJECT THE PRELIMINARY AGREEMENTS MEAN THAT MOTOROLA NOW HAS ENOUGH INVESTORS LINED UP TO PAY AN ESTIMATED 16 BILLION IN EQUITY TO FUND THE PROJECT WITH THE REMAINING 18 BILLION ESTIMATED COST EXPECTED TO BE FUNDED WITH DEBT ONE OF THE BIGGEST HURDLES REMAINING FOR THE PROJECT IS REGULATORY MOTOROLA FACES COMPETITION FROM OTHER PROPOSED SATELLITE TELEPHONE SYSTEMS BEING DEVELOPED BY SUCH COMPANIES AS LORAL CORP AND TRW CORP EACH CURRENTLY VYING WITH MOTOROLA FOR APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION 9301060040 930106 NEW AREA CODE PLANNED BY BELL OF PENNSYLVANIA PHILADELPHIA BELL ATLANTIC CORP'S BELL OF PENNSYLVANIA TELEPHONE COMPANY SAID IT WOULD CREATE A NEW AREA CODE FOR THE PHILADELPHIA AREA IN JANUARY 1994 THE NEW AREA CODE 610 WILL BE USED FOR CERTAIN PHONE NUMBERS CURRENTLY USING THE 215 AREA CODE BELL OF PENNSYLVANIA'S CHANGE IS PART OF A TREND BY NUMEROUS PHONE COMPANIES ACROSS THE US TO COPE WITH AN INCREASING CUSTOMER BASE AND A SHRINKING NUMBER OF NUMERICAL COMBINATIONS IN THE COUNTRY'S CURRENT 10NUMBER SETUP NOW PHONE COMPANIES ARE BEGINNING TO BREAK REGIONS INTO TWO OR MORE NEW AREA CODES AND FOR THE FIRST TIME ARE ASSIGNING AREA CODES THAT END IN ZERO 9301060039 930106 COLUMBIA HOSPITAL ACQUISITION FORT WORTH TEXAS COLUMBIA HOSPITAL CORP SAID IT COMPLETED THE ACQUISITION OF THE 258BED MIAMI HEART INSTITUTE IN MIAMI FROM THE NONPROFIT MIAMI HEART INSTITUTE INC TERMS WEREN'T DISCLOSED THE HOSPITAL CHAIN SAID IT WILL CONSOLIDATE THE INSTITUTE'S OPERATIONS WITH ITS NEARBY 273BED MIAMI BEACH COMMUNITY HOSPITAL 9301060038 930106 TECHNOLOGY MEDIMMUNE SHARES FALL 17 ON MERCK'S AIDS DRUG REVIEW GAITHERSBURG MD MEDIMMUNE INC SHARES FELL MORE THAN 17 YESTERDAY AFTER THE BIOTECHNOLOGY COMPANY DISCLOSED THAT MERCK & CO IS EVALUATING WHETHER TO CONTINUE THEIR COLLABORATION ON A POSSIBLE VACCINE AGAINST THE AIDS VIRUS BUT MEDIMMUNE EXECUTIVES SAID THE MARKET OVERREACTED TO THE NEWS THIS WAS A BASIC RESEARCH PROGRAM AND WE EXPECT THESE KINDS OF HICCUPS IN BASIC RESEARCH SAID MEDIMMUNE CHIEF EXECUTIVE WAYNE T HOCKMEYER AS REPORTED MEDIMMUNE SAID LATE MONDAY THAT LESS SUCCESSFUL RESULTS THAN EXPECTED IN ANIMAL LABORATORY STUDIES HAVE CAUSED MERCK TO REVIEW THE DEVELOPMENT PROGRAM FOR THE VACCINE MEDI 488 AND THAT MERCK WILL DECIDE WITHIN THE NEXT TWO MONTHS WHETHER TO CONTINUE THE PROGRAM MERCK RAHWAY NJ WOULDN'T ELABORATE CITING ITS POLICY OF DECLINING COMMENT ON RESEARCH THAT HASN'T BEEN PUBLISHED IN PEERREVIEWED JOURNALS MEDIMMUNE CLOSED AT 1925 OFF 4 IN NATIONAL OVERTHECOUNTER TRADING MERCK SHARES WERE QUOTED AT 43125 DOWN 75 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE EXECUTIVES SAID THAT THE UNCERTAINTY OVER THE FUTURE OF MEDI 488 APPARENTLY CAUSED INVESTORS TO DISCOUNT TWO POSITIVE DEVELOPMENTS THAT THE COMPANY ANNOUNCED REGARDING LATERSTAGE PRODUCTS MEDIMMUNE SAID IT REACQUIRED DISTRIBUTION RIGHTS TO ITS LEAD PRODUCT CYTOGAM FROM CONNAUGHT LABORATORIES INC CYTOGAM IS USED TO PREVENT CYTOMEGALOVIRUS A DISEASE ASSOCIATED WITH KIDNEY TRANSPLANTS THE COMPANY ALSO SAID THAT IT FILED A PRODUCT LICENSE APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR ITS DRUG RESPIVIR A POLYCLONAL ANTIBODY PRODUCT FOR THE PREVENTION OF RESPIRATORY SYNCYTIAL VIRUS DISEASE IN CHILDREN THE LEADING CAUSE OF PNEUMONIA IN CHILDREN 9301060037 930106 INTERNATIONAL BRIEF UNITED BISCUITS HOLDINGS PLC UK FIRM TO BUY BAKELINE OF CHICAGO A COOKIE MAKER BRITAIN'S UNITED BISCUITS HOLDINGS PLC AGREED TO BUY BAKELINE PRODUCTS INC A CLOSELY HELD US MAKER OF SUPERMARKETLABEL COOKIES FOR 70 MILLION IN CASH AND THE ASSUMPTION OF 5 MILLION IN BAKELINE DEBT UNITED BISCUITS SAID THE MONEY WILL COME FROM INTERNAL RESOURCES CHICAGOBASED BAKELINE HOLDS 25 OF THE US MARKET FOR SUPERMARKETLABEL COOKIES WHICH IN TURN ACCOUNTS FOR 14 OF THE TOTAL US COOKIE MARKET UNITED BISCUITS SAID UNITED BISCUITS CHAIRMAN ROBERT CLARKE SAID HE EXPECTS SUBSTANTIAL SYNERGY BETWEEN BAKELINE AND UNITED BISCUIT'S KEEBLER SNACK UNIT NEAR CHICAGO BAKELINE ALLOWS SUPERMARKET CHAINS TO PUT THEIR OWN NAMES ON THE PACKAGES THE COMPANY HAS ABOUT 25 CUSTOMERS AMONG MAJOR US GROCERYSTORE CHAINS WITH NO ACCOUNT RESPONSIBLE FOR MORE THAN 10 OF SALES OR LESS THAN 1 SALES WERE 738 MILLION IN THE YEAR ENDED JUNE 27 WITH OPERATING PROFIT OF 52 MILLION THAT REPRESENTS AN INCREASE FROM THE 37 MILLION IN OPERATING PROFIT ON 551 MILLION IN SALES IN 1989 NET ASSETS ARE EXPECTED TO BE 17 MILLION AT THE TIME OF THE ACQUISITION UNITED BISCUITS SAID 9301060036 930106 MOODY'S SAYS INDEX OF CREDIT CARDS FINDS FEWER DELINQUENCIES NEW YORK MOODY'S INVESTORS SERVICE INC'S CREDIT CARD INDEX FOR OCTOBER FOUND FEWER DELINQUENCIES AND CHARGEOFFS AMONG RECEIVABLES FOR BANK CONSUMER CREDIT CARDS MOODY'S INDEX IS BASED ON THE CREDIT CARD PERFORMANCE DATA FROM 68 CREDIT CARDBACKED SECURITIES CONTAINING MORE THAN 60 BILLION IN RECEIVABLES THE INDEX FOUND CHARGEOFFS DECLINED TO A TWOYEAR LOW WHILE DELINQUENCY RATES ALSO FELL WE HAVE HAD STABILITY IN THE DELINQUENCY RATE FOR QUITE SOME TIME NOW AND THE ECONOMY HAS BEGUN TO IMPROVE SLIGHTLY SAID MOODY'S RESEARCHER EDWARD BANKOLE SO WE WERE NOT SURPRISED TO SEE THE AMOUNT OF CHARGEOFFS ALSO DECLINING CHARGEOFFS OR DELINQUENCIES OF MORE THAN 90 DAYS FOR CREDIT CARD RECEIVABLES FELL TO 532 IN OCTOBER REPRESENTING THE LOWEST MONTHLY RATE SINCE FEBRUARY 1991 THE OCTOBER RATE WAS ALSO LOWER THAN THE 559 RATE IN SEPTEMBER AND THE 580 RATE IN OCTOBER 1991 DELINQUENCIES WHICH REPRESENT OVERDUE RECEIVABLES OF UP TO 90 DAYS WERE ALSO LOWER THAN THE 603 RATE OF OCTOBER 1991 IT'S IMPORTANT TO NOTE HOWEVER THAT WHILE WE HAVE A STRING OF GOOD NEWS AND LOWER NUMBERS HISTORICALLY THE NUMBERS REMAIN QUITE HIGH MR BANKOLE SAID HE NOTED THAT THE AVERAGE CHARGEOFF RATE FOR THE FIRST 10 MONTHS OF 1992 WAS 580 COMPARED WITH A 412 AVERAGE IN THE 1990 PERIOD MOODY'S EXPECTS FUTURE CHARGEOFF RATES TO RISE OR FALL WITH THE STRENGTH OR WEAKNESS OF THE CURRENT ECONOMIC RECOVERY BUT MOODY'S ADDED THAT IT MAY BE SOME TIME BEFORE CHARGEOFFS REACH PRE1990 LEVELS BECAUSE OF COMPETITION AMONG CARD ISSUERS AND INCREASED WILLINGNESS BY CONSUMERS TO FILE FOR PERSONAL BANKRUPTCY PROTECTION 9301060035 930106 BUSINESS BRIEF RASTEROPS CORP OPERATING LOSS TO BE POSTED FOR THE FISCAL 2ND QUARTER RASTEROPS CORP SAID IT EXPECTS TO REPORT AN OPERATING LOSS FOR ITS SECOND QUARTER ENDED THURSDAY ON SLUGGISH SALES OF ITS COMPUTER GRAPHICS EQUIPMENT THE SANTA CLARA CALIF COMPANY DIDN'T SPECIFY THE LOSS IT SAID SALES FOR THE QUARTER WOULD BE ABOUT EQUAL TO FISCAL FIRSTQUARTER SALES OF 254 MILLION IN THE FIRST QUARTER RASTEROPS HAD A NET LOSS OF 43 MILLION OR 53 CENTS A SHARE ANALYSTS WERE ALREADY EXPECTING A LOSS FOR RASTEROPS FOR THE QUARTER THE COMPANY HAS BEEN DOGGED BY ERRATIC SALES AND EARNINGS FOR SEVERAL QUARTERS IN OVERTHECOUNTER TRADING YESTERDAY RASTEROPS STOCK FELL 50 CENTS TO CLOSE AT 750 A SHARE AS RECENTLY AS LAST JANUARY RASTEROPS TRADED AS HIGH AS 2275 A SHARE 9301060034 930106 BUSINESS BRIEF GANNETT CO ACCOUNTING CHARGE TO CUT 1992 EARNINGS BY 4 MILLION GANNETT CO ARLINGTON VA SAID IT WILL ADOPT TWO ACCOUNTINGRULE CHANGES FOR 1992 RESULTING IN A NET CHARGE OF 146 MILLION OR 101 A SHARE THE MEDIA CONCERN SAID THE CHARGE IS EXPECTED TO REDUCE 1992 EARNINGS BY ABOUT 4 MILLION OR THREE CENTS A SHARE IN 1991 GANNETT EARNED 3016 MILLION OR 2 A SHARE ON REVENUE OF 34 BILLION THE FIRST ACCOUNTING CHANGE INVOLVES POSTRETIREMENT BENEFITS OTHER THAN PENSIONS AND REQUIRES COMPANIES TO RECORD THE LIABILITY FOR THESE BENEFITS MOSTLY MEDICAL THROUGHOUT THE WORKING LIVES OF ITS EMPLOYEES AS A RESULT OF THAT CHANGE GANNETT WILL RESTATE ITS 1992 QUARTERLY RESULTS TO REFLECT INCREMENTAL PRETAX OPERATING COSTS OF 6 MILLION THE COMPANY ALSO WILL INCUR A ONETIME CHARGE OF 180 MILLION OR 125 A SHARE FOR ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATIONS THE SECOND CHANGE INVOLVES INCOME TAXES AND WILL RESULT IN A CREDIT OF 34 MILLION OR 24 CENTS A SHARE GANNETT SAID IT EXPECTS TO REPORT 1992 EARNINGS AROUND FEB 1 9301060033 930106 BUSINESS BRIEF ENHANCE FINANCIAL SERVICES GROUP FIRM TO CREATE LOSS RESERVE OF 34 MILLION IN 4TH PERIOD ENHANCE FINANCIAL SERVICES GROUP INC SAID THAT IT WOULD CREATE A 34 MILLION LOSS RESERVE IN THE 1992 FOURTH QUARTER TO COVER ANTICIPATED CLAIMS AGAINST A FINANCIAL GUARANTEE IT PROVIDED THE RESERVE WILL CAUSE A CHARGE AGAINST EARNINGS OF EIGHT CENTS A SHARE THE NEW YORK COMPANY SAID IN THE 1991 FOURTH QUARTER THE REINSURER OF MUNICIPAL BONDS AND OTHER FINANCIAL INSTRUMENTS EARNED 9 MILLION OR 51 CENTS A SHARE THE LOSS RESERVE COVERS A FINANCIAL GUARANTEE THAT ENHANCE PROVIDED AS A REINSURER OF A SECURITY ISSUED BY HERON INTERNATIONAL NV A DEBTLADEN PROPERTY AND SERVICES GROUP THAT OPERATES MAINLY IN BRITAIN AND IS ONE OF THAT COUNTRY'S LARGEST PRIVATE COMPANIES THE SECURITY IS BACKED BY COMMERCIAL REAL ESTATE WHILE ITS EXPOSURE TOTALS 40 MILLION ENHANCE SAID THAT IT HASN'T YET PAID ANY CLAIMS ON THE TRANSACTION AND THAT THE RESERVE COVERS ALL ANTICIPATED CLAIMS PAYMENTS 9301060032 930106 WHO'S NEWS SEPRACOR INC SEPRACOR INC MARLBOROUGH MASS DIGBY W BARRIOS WAS NAMED A DIRECTOR INCREASING THE SIZE OF THE PHARMACEUTICAL COMPANY'S BOARD TO EIGHT MEMBERS MR BARRIOS 55 YEARS OLD WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOEHRINGER INGELHEIM CORP FROM 1988 TO 1992 AND IS NOW A CONSULTANT 9301060031 930106 AMERICAN FINANCIAL FALSIFIED STATEMENTS EXCHAIRMAN CHARGES DALLAS JOHN J PEMBROKE WHO RESIGNED LAST MONTH AS CHAIRMAN OF AMERICAN FINANCIAL NETWORK INC CHARGED THAT THE COMPANY FALSIFIED ITS FINANCIAL STATEMENTS AND SAID DRASTIC ACTIONS NEED TO BE TAKEN IMMEDIATELY FOR THE SURVIVAL OF THE COMPANY IN A RESIGNATION LETTER MR PEMBROKE THE FINANCIAL SERVICES COMPANY'S 47YEAROLD FOUNDER ALLEGED THAT FINANCIAL STATEMENTS BEING DISTRIBUTED TO ME AND FILED WITH THE SEC WERE INACCURATE AND PURPOSELY BEING MISSTATED THE LETTER MADE PUBLIC BY AMERICAN FINANCIAL DIDN'T SPECIFY THE DATES OF THE STATEMENTS A COMPANY SPOKESMAN SAID MR PEMBROKE'S ALLEGATIONS ARE WITHOUT MERIT ADDING THAT THE COMPANY IS NEGOTIATING THE TERMS OF THE EXECUTIVE'S CONTRACT TERMINATION AND IT SOUNDS LIKE SOME POSTURING IS GOING ON THERE THE COMPANY SAID IN A NEWS RELEASE THAT JOSEPH B BREEN 62 ALSO A DIRECTOR WAS ELECTED TO SUCCEED MR PEMBROKE AS CHAIRMAN MR BREEN A LAWYER IN PRIVATE PRACTICE WAS AMERICAN FINANCIAL'S OUTSIDE COUNSEL AND HAS ALSO HELD POSITIONS WITH MERRILL LYNCH REALTY AMERICAN FINANCIAL SAID MR PEMBROKE WHO WAS REPLACED AS THE COMPANY'S PRESIDENT IN JULY SAID IN AN INTERVIEW THAT HE HASN'T BEEN INVOLVED IN ITS DAILY OPERATIONS SINCE THEN HE ADDED THAT HE PLANS TO PURSUE BUSINESS INTERESTS IN MEXICO IN HIS LETTER MR PEMBROKE ALSO CHARGED THAT THE BOARD REFUSED TO AUTHORIZE A REVIEW BY THE COMPANY'S OUTSIDE AUDITOR AND THAT THE COMPANY HASN'T PAID DELINQUENT FEDERAL TAXES IN THE FISCAL YEAR ENDED MARCH 31 1992 THE COMPANY REPORTED A NET LOSS OF 28 MILLION OR 55 CENTS A SHARE ON REVENUE OF 32 MILLION 9301060030 930106 CD YIELDS AT BANKS AND BROKERAGE FIRMS FELL IN LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS DECLINED SLIGHTLY IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS EASED TO 290 FROM 291 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS DECLINED TO 540 FROM 541 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 339 FROM 345 WHILE ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD DECLINED TO 577 FROM 585 ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLID TO 299 FROM 302 BANXQUOTE SAID ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWN TO 557 FROM 562 9301060029 930106 ROCKWELL SAYS IT TRIMMED EXECUTIVE COMPENSATION SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP ONE OF THE FIRST MAJOR COMPANIES TO ISSUE A PROXY STATEMENT UNDER NEW RULES DISCLOSED THAT IT REDUCED SENIOR EXECUTIVES' PAY AND ELIMINATED LONGTERM COMPENSATION BECAUSE OF THE FIRM'S PERFORMANCE LAST YEAR UNDER NEW SECURITIES AND EXCHANGE COMMISSION RULES ON PAY DISCLOSURE ROCKWELL'S 1993 PROXY MATERIAL EXPLAINS THAT BOARD MEMBERS CALCULATE EXECUTIVE PAY BY SETTING ANNUAL BASE SALARIES FOR SENIOR MANAGERS SOMEWHAT BELOW COMPETITIVE LEVELS AS AN INCENTIVE MORE SIGNIFICANTLY MR BEALL DIDN'T RECEIVE ANY LONGTERM INCENTIVE PAYOUT COMPARED WITH 14 MILLION IN SUCH INCENTIVES THE PREVIOUS YEAR HE AND OTHER SENIOR EXECUTIVES DIDN'T GET THE PAYOUT BECAUSE THE COMPANY DIDN'T MEET A MINIMUM THREEYEAR EARNINGS TARGET EVEN THOUGH THE FAILURE TO MEET THAT OBJECTIVE WAS LARGELY ATTRIBUTABLE TO A WORLDWIDE RECESSION THE STATEMENT SAID 9301060028 930106 TREASURY PLANS SALE OF ABOUT 24 BILLION IN SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 950 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS TO REDEEM 2304 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON APRIL 15 1993 AND JULY 15 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794C28 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794E83 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9301060026 930106 POLITICS & POLICY RAILPANEL OFFICIAL TO FILL BENTSEN'S SEAT IN SENATE AUSTIN TEXAS AFTER WEEKS OF DELIBERATION TEXAS GOV ANN RICHARDS SETTLED ON BOB KRUEGER AN ERUDITE STATE RAILROAD COMMISSIONER AS THE SHORTTERM SENATE REPLACEMENT FOR DEMOCRAT LLOYD BENTSEN WHO IS SLATED TO BECOME TREASURY SECRETARY THE 57YEAROLD MR KRUEGER SERVED TWO TERMS IN THE HOUSE OF REPRESENTATIVES AND TWICE FAILED TO WIN ELECTION TO THE US SENATE HE IS A FORMER AMBASSADOR TO MEXICO MR KRUEGER WILL HAVE HIS WORK CUT OUT FOR HIM TO RETAIN THE SEAT IN A GRUELING FREEFORALL SPECIAL ELECTION THAT PROBABLY WILL BE HELD IN MAY AND COULD INVOLVE DOZENS OF CANDIDATES DEMOCRATS AND REPUBLICANS ALIKE IF NO ONE GETS 50 IN THAT ELECTION SOMETHING THAT IS LIKELY A RUNOFF ELECTION WILL BE HELD TO FILL THE TWO YEARS REMAINING IN SEN BENTSEN'S TERM GOV RICHARDS HAD INTERVIEWED A DOZEN CANDIDATES IN REACHING HER DECISION SHE SAID MR KRUEGER ELECTED STATEWIDE TO THE POWERFUL RAILROAD COMMISSION IN 1990 IS A MAN WHO WILL NEED NO ONTHEJOB TRAINING DEMOCRATS HAD HOPED TO UNIFY BEHIND ONE CANDIDATE IN THE SPECIAL ELECTION BUT MR KRUEGER IS SEEN AS VULNERABLE ENOUGH TO DRAW OTHERS INTO THE RACE FORMER ATTORNEY GENERAL JIM MATTOX ALREADY HAS EXPRESSED INTEREST IN MAKING THE RUN LIKELY GOP CANDIDATES INCLUDE REPS JOE BARTON AND JACK FIELDS AND STATE TREASURER KAY BAILEY HUTCHINSON 9301060024 930106 TUESDAY'S MARKETS STOCK PRICES FINISH MIXED DOLLAR WEAKENS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN ACTIVE TRADING BOND PRICES EASED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 135 TO 330787 AND STANDARD & POOR'S 500STOCK INDEX WAS OFF 104 TO 43434 BUT THE NASDAQ COMPOSITE INDEX GAINED 254 TO 67434 ANALYSTS SAID PRICES REMAIN LOCKED IN A NARROW RANGE AS INVESTORS AWAIT FURTHER EVIDENCE OF THE ECONOMY'S RECOVERY WILLIAM C MATTISON JR PRESIDENT OF GERARD KLAUER MATTISON SAID ANOTHER BATCH OF POSITIVE NEWS WOULD LIKELY BOOST CONSUMER SENTIMENT AND IN TURN THE STOCK MARKET THE NEXT SIX TO EIGHT WEEKS ARE VERY IMPORTANT MR MATTISON SAID INVESTOR PSYCHOLOGY WILL BE DRIVEN IN LARGE DEGREE BY CONSUMER PSYCHOLOGY MICKEY D LEVY CHIEF ECONOMIST AT CRT GOVERNMENT SECURITIES SAID HE IS OPTIMISTIC ABOUT THE STOCK MARKET'S PROSPECTS BECAUSE MANY COMPANIES ARE IMPROVING PROFITS THROUGH GAINS IN PRODUCTIVITY IF YOU DON'T JUST LOOK AT THE PROFITS BUT AT THE REASONS FOR THE PROFITS THEN YOU HAVE TO BE POSITIVE ON STOCKS HE SAID IN ADDITION INVESTORS HAVE PLENTY OF MONEY TO PUT TO WORK IN THE STOCK MARKET LIMITING THE RISK OF A SERIOUS SLUMP IN PRICES NED COLLINS HEAD OF TRADING AT DAIWA SECURITIES AMERICA SAID THAT AMONG POTENTIAL SOURCES OF CASH FOR STOCK INVESTMENT ARE AN ESTIMATED 9 BILLION TO 10 BILLION IN MUNICIPAL BONDS MATURING THIS MONTH THERE REALLY IS A LOT OF CASH OUT THERE HE SAID IF JUST A PORTION OF IT GOES INTO STOCKS THEN YOU'VE GOT A PRETTY GOOD BASE FOR PRICES WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK MARKET INDEX CLOSED AT 9239 UP 031 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2403 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1074 ISSUES ROSE AND 799 FELL BOND PRICES WERE MARGINALLY LOWER THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN 1/8 OF A POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 733 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16255 MARKS AND 12483 YEN COMPARED WITH 16395 MARKS AND 12535 YEN MONDAY 9301060023 930106 WHO'S NEWS IMASCO LTD IMASCO LTD MONTREAL JERRY D GRAMAGLIA 37YEAROLD SENIOR VICE PRESIDENT MARKETING WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING FOR HARDEE'S FOOD SYSTEMS INC A UNIT OF THIS CANADIAN CONCERN BASED IN ROCKY MOUNT NC 9301060022 930106 TECHNOLOGY HARRIS CORP LEAVES SEMATECH PULLOUT IS THIRD IN A YEAR BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL HARRIS CORP SAID IT HAS PULLED OUT OF THE SEMATECH COMPUTERCHIP RESEARCH CONSORTIUM THE THIRD MEMBERCOMPANY TO LEAVE THE GROUP IN THE PAST YEAR HARRIS IN MELBOURNE FLA SAID ITS DEPARTURE FROM SEMATECH FOLLOWS A BROAD RESTRUCTURING AT ITS SEMICONDUCTOR OPERATIONS WHICH POSTED A LOSS OF 195 MILLION FOR THE FISCAL YEAR ENDED JUNE 30 THOUGH HARRIS SAID IT HAS USED SOME SEMATECHDEVELOPED TECHNOLOGIES IN ITS DEFENSE OPERATIONS A COMPANY SPOKESMAN SAID THE CONSORTIUM'S FOCUS ON DEVELOPING CUTTINGEDGE CHIPMAKING EQUIPMENT NO LONGER MEETS HARRIS'S GOALS THIS IS AN INDIVIDUAL COMPANY DECISION BASED ON OUR FOCUS AND OUR SITUATION GOING FORWARD HARRIS SAID ITS DECISION TO LEAVE SEMATECH WILL SAVE THE COMPANY ABOUT 58 MILLION IN ANNUAL DUES THE CONSORTIUM'S 200 MILLION ANNUAL BUDGET IS FUNDED JOINTLY BY ITS 11 MEMBER COMPANIES AND THE DEPARTMENT OF DEFENSE HARRIS'S DEPARTURE RUMORED FOR MONTHS COMES LESS THAN A YEAR AFTER LSI LOGIC CORP AND MICRON TECHNOLOGY INC ANNOUNCED PLANS TO LEAVE SEMATECH FORMED IN AUSTIN TEXAS IN 1987 TO COUNTER JAPANESE ADVANCES IN CHIPMAKING TECHNOLOGY THOUGH SEMATECH HAS BEEN CREDITED WITH BOLSTERING A LANGUID US CHIPEQUIPMENT BUSINESS ITS SUCCESS HAS LED MANY INDUSTRY WATCHERS TO QUESTION WHETHER THE CONSORTIUM IS STILL NEEDED INDEED THE DEFENSE DEPARTMENT IN A REPORT RELEASED IN AUGUST SAID IT PLANS TO BEGIN PHASING OUT SEMATECH FUNDING AND MEMBER COMPANIES HAVE PRESSED THE CONSORTIUM TO ALIGN ITS RESEARCH MORE CLOSELY WITH THEIR OWN PROJECTS THOUGH SOME MEMBER COMPANIES ARE SAID TO REMAIN RESTLESS ROCKWELL INTERNATIONAL CORP TOLD SEMATECH TWO YEARS AGO THAT IT MIGHT LEAVE THE GROUP BUT CHANGED ITS MIND LAST MONTH MR HUTCHESON SAID MOST SEMATECH WATCHERS DON'T EXPECT A MASS EXODUS I THINK THE REST OF THE GROUP IS PRETTY SOLID HE SAID ALL THE PEOPLE WHO HAD THEIR DOUBTS HAVE LEFT 9301060021 930106 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 GENERAL MOTORS ACCEPTANCE CORP 500 MILLION ISSUE OF NOTES DUE JAN 1 2003 WAS PRICED AT PAR TO YIELD 85 THE NONCALLABLE NOTES WERE PRICED AT A SREAD OF 191 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO GMAC IS A UNIT OF GENERAL MOTORS CORP FEDERAL HOME LOAN BANKS 100 MILLION ISSUE OF STEPUP COUPON NOTES WITH A FINAL MATURITY OF JAN 19 1996 WAS PRICED AT PAR TO YIELD 402 THE ISSUE'S COUPON STEPS UP OR INCREASES TO 587 ON JAN 19 1994 THE ISSUE WAS PRICED AT A SPREAD OF 50 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 FIRST TENNESSEE BANK WILL LEAD MANAGE THE DEAL TRANSAMERICA FINANCE CORP 100 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE JAN 15 1998 WAS PRICED AT PAR TO YIELD 675 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC TRANSAMERICA FINANCE IS A UNIT OF TRANSAMERICA CORP OCCIDENTAL PETROLEUM CORP 100 MILLION ISSUE OF 30YEAR 875 MEDIUMTERM NOTES WAS PRICED AT 9945 TO YIELD 8802 JP MORGAN SECURITIES LEAD MANAGER SAID THE ISSUE IS EXPECTED TO BE RATED BAA2 TO TRIPLEB AND IS DUE JAN 15 2023 THE ISSUE WAS COMANAGED BY DONALDSON LUFKIN & JENRETTE LEHMAN BROTHERS MERRILL LYNCH AND SALOMON BROTHERS LOS ANGELES DEPARTMENT OF WATER & POWER 200 MILLION 1993 ELECTRIC PLANT REVENUE BONDS WERE APPARENTLY WON BY A CHEMICAL SECURITIES INC GROUP CHEMICAL IS BELIEVED TO HAVE WON THE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 622 YIELDS RANGE FROM 500 IN 1999 TO 624 IN 2033 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA TERM BONDS COMPRISE 6125 BONDS PRICED TO YIELD 624 IN 2033 SAN FRANCISCO CITY & COUNTY AIRPORTS COMMISSION 1702 MILLION SECOND SERIES REFUNDING REVENUE BONDS FOR SAN FRANCISCO INTERNATIONAL AIRPORT WERE APPARENTLY WON BY GROUPS LED BY GOLDMAN SACHS & CO AND LEHMAN BROTHERS THE 9105 MILLION ISSUE 3 BONDS ARE BELIEVED TO HAVE BEEN WON BY GOLDMAN SACHS WITH A BID SETTING THE TRUE INTEREST COST OR TIC AT 620 THESE BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE BEEN PRICED TO YIELD FROM 360 IN 1994 TO 627 IN 2020 LEHMAN BROTHERS APPARENTLY WON THE 7911 MILLION ISSUE 4 BONDS WITH A TIC OF 607 YIELDS FOR THIS PORTION OF THE OFFERING WERE SET AT 330 IN 1994 TO 615 IN 2020 THE ISSUE 4 BONDS AREN'T SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX ALL OF THE SECURITIES ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WISCONSIN HEALTH & EDUCATIONAL FACILITIES AUTHORITY 989 MILLION SERIES 1992 REVENUE BONDS HAVE BEEN PRICED BY A JOHN NUVEEN & CO GROUP YIELDS WERE SET AT 270 IN 1993 TO 633 IN 2022 THE BONDS ARE INSURED BY MBIA CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P THEY ARE FOR THE WHEATON FRANCISCAN SERVICES INC SYSTEM TERM BONDS COMPRISE 156 MILLION OF 600 BONDS PRICED TO YIELD 630 IN 2013 348 MILLION OF 575 BONDS PRICED TO YIELD 633 IN 2022 CITY OF WINNIPEG 100 MILLION CANADIAN DOLLAR ISSUE OF 9375 BONDS DUE FEB 11 2013 WAS PRICED AT 9950 TO YIELD 9431 A SPREAD OF 884 BASIS POINTS OVER THE GOVERNMENT OF CANADA BOND MATURING IN 2021 WOOD GUNDY INC IS THE LEAD MANAGER FEDERAL NATIONAL MORTGAGE ASSOCIATION 12 BILLION ISSUE OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES IS BEING OFFERED BY KIDDER PEABODY THE OFFERING SERIES 19938 IS BACKED BY FANNIE MAE'S 15YEAR 750 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1464 IS BACKED BY FREDDIE MAC GOLD 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 170 OF THE PSA CURVE FEDERAL NATIONAL MORTGAGE ASSOCIATION 402 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES THE OFFERING SERIES 19939 IS BACKED BY FANNIE MAE'S 8 MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 200 OF THE PSA CURVE FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION ISSUE OF REMIC SECURITIES IS BEING OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 19937 IS BACKED BY FANNIE MAE'S 650 BALLOON MORTGAGE SECURITIES THE WEIGHTED AVERAGE LIVES ASSUME PREPAYMENTS AT 250 OF THE PSA CURVE TOYOTA MOTOR CREDIT CORP JAPAN PARENT 300 MILLION OF 5375 EUROBONDS DUE JAN 19 1996 PRICED AT 1011275 VIA CREDIT SUISSE FIRST BOSTON BONDS REOFFERED AT 9994 TO YIELD 375 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1375 EUROPEAN INVESTMENT BANK AGENCY 250 MILLION OF COLLARED FLOATING RATE NOTES DUE JAN 20 2003 PRICED AND REOFFERED AT PAR VIA KIDDER PEABODY SEMIANNUAL COUPON OF SIXMONTH LONDON INTERBANK OFFER RATE LESS 25 POINT WITH A MINIMUM 5 AND A MAXIMUM 8125 FEES 50 LANDESKREDITBADENWUERTTEMBERG GERMAN 200 MILLION OF COLLARED FLOATINGRATE NOTES DUE FEB 4 2003 PRICED AND REOFFERED AT 9975 VIA SWISS BANK CORP COUPON ON THIS SUBORDINATED DEBT IS THE SIXMONTH LIBOR LESS 25 POINT WITH A MINIMUM 525 AND A MAXIMUM 8 FEES 50 BAYERISCHE VEREINSBANK AG GERMANY 100 MILLION OF COLLARED FLOATING RATE EUROBONDS DUE JAN 29 2003 PRICED AND REOFFERED AT PAR VIA MERRILL LYNCH COUPON ON THIS SUBORDINATED DEBT IS THE SIXMONTH LIBOR LESS 125 POINT WITH A MINIMUM 5 AND A MAXIMUM 925 FEES 50 EXPORT DEVELOPMENT CORP AGENCY 100 MILLION OF COLLARED FLOATING RATE NOTES DUE FEB 5 2003 PRICED AND REOFFERED AT PAR VIA MERRILL LYNCH COUPON IS SIXMONTH LIBOR LESS 25 WITH MINIMUM 5 AND MAXIMUM OF 8 FEES 50 BANK NEDERLANDSE GEMEENTEN DUTCH 400 MILLION DUTCH GUILDERS OF 7 EUROBONDS DUE FEB 4 1999 PRICED AT PAR VIA SBCI SWISS BANK CORP NEDERLAND NV BONDS REOFFERED AT 9920 TO YIELD 717 ANNUALLY FEES 1 NATIONALE INVESTERINGS BANK NV DUTCH 400 MILLION DUTCH GUILDERS OF 725 EUROBONDS DUE FEB 4 2003 PRICED AT 10050 AND REOFFERED AT 9975 VIA ABN AMRO BANK 9301060020 930106 ABREAST OF THE MARKET INDUSTRIALS FINISH 004 LOWER AFTER TRADING IN A NARROW RANGE BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS FINISHED SLIGHTLY LOWER YESTERDAY AFTER SEESAWING FOR MOST OF THE SESSION THE DOW JONES INDUSTRIAL AVERAGE LOST 135 POINTS OR 004 TO 330787 THE STANDARD & POOR'S 500STOCK INDEX SLID 104 POINTS OR 024 TO 43434 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 063 POINT OR 026 TO 23925 WHAT HAPPENED TODAY WAS WHAT I'D CALL EARLYINTHEYEAR CONFUSION SAID ROBERT RITTER A TECHNICAL ANALYST AT LADENBURG THALMANN THE BIG BOARD IS OVERBOUGHT SO WHAT WE SAW WAS A REACTION TO THE RUNUP BUT IT DIDN'T ALWAYS LOOK AS IF THE SELLERS WOULD HAVE THEIR WAY EQUITIES SPENT MOST OF THE SESSION MOVING BACK AND FORTH IN A TIGHT TRADING RANGE OBSERVERS SAID YESTERDAY'S MARKET RESEMBLED A ROLLER COASTER CAUGHT IN CONFUSING CROSSCURRENTS OF BUY AND SELL ORDERS INVESTORS WERE WAITING FOR SOMETHING TO CATCH THEIR FANCY BUT THEY DIDN'T FIND IT SAID GAIL DUDACK A MARKET STRATEGIST AT SG WARBURG SOME MARKET WATCHERS SPECULATE THAT NEGATIVE NEWS FROM IRAQ TIPPED THE SCALES IN THE SELLERS' FAVOR ACCORDING TO PUBLISHED REPORTS IRAQ MOVED SURFACETOAIR MISSILES INTO THE UNIMPOSED NOFLY ZONE IN THE SOUTHERN PART OF THE COUNTRY INTERNATIONAL CRISES DON'T ALWAYS BRING A STOCK MARKET PLUNGE EQUITIES POSTED HEALTHY GAINS DURING THE GULF WAR BUT TURMOIL ON THE EVE OF PRESIDENTELECT CLINTON'S INAUGURATION IS VIEWED BY MANY AS DISRUPTIVE TO STOCKS TRADING REMAINED BRISK NEW YORK STOCK EXCHANGE VOLUME TOTALED 240300000 SHARES COMPARED WITH MONDAY'S 199680000 BIG BOARD ADVANCERS EDGED PAST DECLINERS 1074 TO 799 ALTHOUGH A TREND TOWARD CONSOLIDATION NOW SEEMS TO BE EMERGING ANALYSTS EXPECT YESTERDAY'S SEESAW PATTERN TO REPEAT ITSELF IN THE NEXT FEW SESSIONS UNLESS FORTHCOMING ECONOMIC INDICATORS CAST A SHADOW OF DOUBT ON A RECOVERY THE NEXT MARKET MILESTONES WILL BE MR CLINTON'S INAUGURATION AND THE START OF FOURTHQUARTER EARNINGS REPORTS IN MIDJANUARY THIS IS A VERY FRAGMENTED MARKET SAID DON HAYS DIRECTOR OF INVESTMENT STRATEGY AT WHEAT FIRST BUTCHER & SINGER BUT WHEN THE BOTTOM LINE COMES DOWN I THINK IT WILL TURN OUT THAT WE'RE LOSING MOMENTUM MR HAYS SAID HE THINKS STOCKS COULD FIND THEMSELVES REENERGIZED BY POSITIVE DEVELOPMENTS IN THE CURRENCY MARKETS A POWERFUL BRITISH POUND HE SAID MIGHT MEAN THAT EUROPEAN ECONOMIES ARE REBOUNDING THAT COULD TRANSLATE INTO A BOOMING EXPORT BUSINESS FOR US COMPANIES WHICH IN TURN WOULD PULL SHARE PRICES HIGHER STERLING WAS TRADING AT 155 UP 33 THE POUND ALSO SURGED 24 AGAINST THE MARK AUTO MANUFACTURERS GOT A LIFT FROM AN ANNOUNCEMENT THAT THE BIG THREE AUTO MAKERS UNITED AUTO WORKERS PRESIDENT OWEN BIEBER AND MR CLINTON WILL MEET TODAY IN LITTLE ROCK ARK TOPICS LIKELY TO BE DISCUSSED ARE THE ECONOMY GOVERNMENT REGULATION AND TRADE CHRYSLER ADVANCED 1/2 TO 33 1/8 GENERAL MOTORS GAINED 3/8 TO 33 1/4 AND FORD MOTOR CLIMBED 5/8 TO 44 5/8 USAIR GROUP GREW 1 TO 14 SALOMON BROTHERS RAISED ITS RATING FOR THE CARRIER TO BUY FROM HOLD CITING SIGNIFICANT PROGRESS IN RESTRUCTURING ITS OPERATIONS TO REMAIN A VIABLE INDEPENDENT AIRLINE IT ADDED THAT IF A FOREIGN CARRIER INVESTS IN USAIR IT COULD HELP FORTIFY THE COMPANY'S FINANCIAL STRUCTURE BUT OTHER AIRLINES STALLED IN THE WAKE OF FIERCE COMPETITION FOR PASSENGERS ANALYSTS SAY MANY CARRIERS ARE OFFERING GENEROUS FREQUENTFLIER BENEFITS TO ENTICE WOULDBE PASSENGERS EVEN AS PROFITS NOSEDIVE UAL LOST 3/4 TO 125 SOUTHWEST AIRLINES GAVE UP 3/8 TO 29 5/8 AND AMR INCHED 1/8 LOWER TO 66 7/8 MARTECH USA ADDED 1 1/8 TO 11 1/8 SPECULATION THAT THE COMPANY MAY GET ADDITIONAL BUSINESS IN THE WAKE OF A SEVERE OIL SPILL NEAR THE SHETLAND ISLANDS WAS CREDITED WITH PUSHING THE ISSUE HIGHER A TANKER WAS REPORTEDLY LEAKING OIL IN CHOPPY SEAS ABOUT 180 MILES NORTH OF ABERDEEN SCOTLAND MARTECH PROVIDES MARINE POLLUTIONCONTROL SERVICES AND REMEDIATION OF ENVIRONMENTAL HAZARDS ASSOCIATED WITH OFFSHORE OIL AND GAS PLATFORMS AND PIPELINES MEANWHILE ULTRAMAR CORP SAID THE ILLFATED TANKER WAS DESTINED FOR ITS ST ROMUALD REFINERY ITS STOCK SANK 1/4 TO 17 7/8 VARIAN ASSOCIATES TUMBLED 4 1/8 TO 38 3/4 THE PALO ALTO CALIF ELECTRONIC EQUIPMENT MAKER PREDICTED IT WILL FALL SHORT OF THE 76 MILLION OR 40 CENTS A SHARE IT EARNED IN THE FIRST QUARTER OF FISCAL 1992 BUT THE COMPANY ALSO FORECAST CONSIDERABLY HIGHER EARNINGS FOR THE YEAR AS A WHOLE AMERICAN DEPOSITARY RECEIPTS OF NEWS CORP SLUMPED 2 1/2 TO 37 7/8 THE RESIGNATION OF JAMIE KELLNER PRESIDENT OF THE FOX BROADCASTING UNIT WAS SEEN PULLING THE STOCK LOWER AN OPPENHEIMER & CO ANALYST CLIPPED HER EARNINGS OUTLOOK FOR NEWS CORP'S SECOND QUARTER ENDED IN DECEMBER TO 82 CENTS A SHARE FROM 86 CENTS CITING RECENT TURMOIL AT THE COMPANY AND WORRIES ABOUT THE PERFORMANCE OF TWO RECENT FILMS RELEASED BY ITS TWENTIETH CENTURY FOX UNIT WALGREEN FELL 1 1/2 TO 43 AFTER A RAYMOND JAMES ANALYST PARED THE COMPANY'S RATING TO HOLD FROM BUY THE ANALYST SAID THAT SINCE JUNE 30 THE DEERFIELD ILL DRUGSTORE CHAIN'S STOCK HAS RISEN 31 BUT HE RETAINED HIS 2ASHARE EARNINGS ESTIMATE FOR THE CURRENT YEAR ENDING IN AUGUST FREEPORTMCMORAN RESOURCE PARTNERS' UNITS WERE UP 1 3/8 TO 19 5/8 A MERRILL LYNCH GLOBAL SECURITIES ANALYST RAISED HIS INTERMEDIATETERM RATING FOR THE COMPANY TO ABOVE AVERAGE FROM NEUTRAL CITING THE STOCK'S PRICE SINCE OCTOBER THE ISSUE'S PRICE HAS DROPPED 18 LARGELY AS INVESTORS SOLD THE STOCK FOR TAX REASONS AND ON WEAK PHOSPHATE PRICES BURLINGTON COAT FACTORY WAREHOUSE GAINED 1 1/8 TO 22 5/8 AFTER IT SAID DECEMBER SAMESTORE SALES OR SALES IN STORES OPERATING A YEAR AGO INCREASED 18 THE BURLINGTON NJ APPAREL CHAIN SAID SALES FOR THE MONTH WERE 237 MILLION UP 26 FROM 188 MILLION A YEAR AGO 9301060019 930106 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN TAIWAN'S 1992 TRADE SURPLUS DECLINED 29 TO 948 BILLION FROM A YEAR EARLIER AS SLOWER ORDERS FROM SOME BIG MARKETS CURBED EXPORT GROWTH AT 7 TO 8148 BILLION AND RISING DOMESTIC DEMAND HELPED IMPORTS SOAR 15 TO A RECORD 72 BILLION BUT THE NARROWING MASKED A NEW HIGH FOR EXPORTS TOO ON CONTINUED STRONG DEMAND FROM ASIA ESPECIALLY CHINA SHIPMENTS TO THE US TAIWAN'S BIGGEST EXPORT MARKET JUMPED AN UNEXPECTED 5 THE OVERALL DROP REPRESENTED A SIGNIFICANT TURNAROUND FROM 1991 WHEN THE SURPLUS GREW 64 TO 133 BILLION THE FIRST EXPANSION IN TWO YEARS LAST YEAR MARKED THE FIRST TIME SINCE 1984 THAT THE SURPLUS WAS LESS THAN 10 BILLION A MILESTONE FOR TAIWAN WHICH HAS PLEDGED A REDUCTION TO TRADING PARTNERS PARTICULARLY THE US AFTER THE SURPLUS PEAKED IN 1987 AT 1869 BILLION THE US PRESSURED TAIPEI TO REVERSE THE TREND KUWAIT HAS BEGUN FREEZING FUNDS OF PEOPLE LINKED TO THE COLLAPSE OF THE EMIRATE'S INVESTMENT COMPANY IN SPAIN KUWAITIS TIED TO THE SCANDAL INVOLVING MISSING FUNDS IN THE MULTIBILLIONDOLLAR SPANISH INVESTMENT WERE SAID TO HAVE BEGUN SELLING THEIR ASSETS AND TRANSFERRING MONEY ABROAD AN INVESTIGATION IS FOCUSING ON KUWAIT INVESTMENT OFFICE OFFICIALS IN LONDON WHO MANAGE OVERSEAS WEALTH GENERATED BY KUWAIT'S OIL EXPORTS THE PHILIPPINES AND THE US AGREED TO ALLOW THE US EXPORTIMPORT BANK TO EXTEND GUARANTEES TO INVESTORS IN THE PHILIPPINES TO PROTECT THEM FROM POLITICAL RISKS PREVIOUSLY ONLY THE US'S OVERSEAS PRIVATE INVESTMENT CORP COULD PROVIDE SAFEGUARDS AGAINST EXPROPRIATION WAR AND CIVIL STRIFE THE ACCORD SHOULD SMOOTH THE WAY FOR MORE US INVESTMENTS IN THE COUNTRY AND ENABLE THE PHILIPPINES TO RAISE FOREIGN FINANCING FOR HIGHPRIORITY PROJECTS SUCH AS A REFINERY AND POWER PLANT UNDER WAY IN THE PRIVATE SECTOR ECONOMY MINISTER CARLOS BOLONA THE PRINCIPAL ARCHITECT OF PERU'S AUSTERITY PROGRAM SINCE FEBRUARY 1991 RESIGNED HE WAS SAID TO OPPOSE PRESIDENT ALBERTO FUJIMORI'S PLAN TO RELAX THE RIGID ECONOMIC PROGRAM MR FUJIMORI FACES PRESSURE TO PULL PERU OUT OF A FIVEYEAR RECESSION AND BOOST THE ECONOMY WHICH SHRANK 27 LAST YEAR UNDER MR BOLONA PERU'S ANNUAL INFLATION RATE PLUMMETED TO 567 LAST YEAR FROM 139 IN 1991 AND 7650 IN 1990 BUT HIS POLICIES WHICH SLASHED GOVERNMENT SPENDING DEEPENED THE RECESSION BELGIUM POSTED A 1992 BUDGET DEFICIT THAT WAS MUCH HIGHER THAN EXPECTED IMPERILING COMPLIANCE WITH SPENDING TARGETS IN THE PROPOSED TREATY ON EUROPEAN COMMUNITY INTEGRATION THE GAP OF 490 BILLION FRANCS 1453 BILLION DESPITE BUDGET CUTS REPRESENTED 68 OF GROSS NATIONAL PRODUCT THE TOTAL VALUE OF THE OUTPUT OF GOODS AND SERVICES EXCEEDING BY FAR THE GOVERNMENT GOAL OF 57 TO CREATE EC ECONOMIC UNION THE TREATY CAPS GOVERNMENT SPENDING DEFICITS AT 3 OF NATIONAL OUTPUT BELGIUM BLAMED ITS LATEST GAP ON EUROPE'S HIGH INTEREST RATES AND ECONOMIC SLUMP CHINA ISSUED WHAT WAS VIEWED AS AN IMPLIED THREAT TO UPSET HONG KONG'S ECONOMY UNLESS THE BRITISH COLONY BACKS DOWN FROM PLANS TO EXPAND DEMOCRACY BEFORE THE TERRITORY REVERTS TO CHINESE RULE IN 1997 THE XINHUA NEWS AGENCY CONTINUING BEIJING'S BARRAGE OF PRESSURE AFTER THE COLONY RULED OUT A REFERENDUM ON THE REFORMS EMPHASIZED CHINA'S PIVOTAL ROLE AS HONG KONG'S LARGEST INVESTOR IT SAID HONG KONG'S FORTUNES NO LONGER ARE LINKED TO THE US ECONOMY AS CHINA HAS REPLACED THE US AS HONG KONG'S LARGEST TRADE PARTNER THE BIGGEST MARKET AND THE LEADING COMMODITY SUPPLIER BEIJING HAS VOWED TO VOID HONG KONG CONTRACTS SIGNED WITHOUT ITS APPROVAL STILL CHINA MAY BE RELUCTANT TO JEOPARDIZE TRADE LINKS BECAUSE OF CONCERNS THAT ITS ECONOMY IS GROWING TOO FAST CHINA WILL DEFER OPENING MORE SPECIAL ECONOMIC ZONES THE FIVE ESTABLISHED ZONES OFFER FOREIGN INVESTORS INVESTMENT AND TRADE INCENTIVES THE GOVERNMENT NOTED THAT CHINA'S BOOMING STOCK AND PROPERTY MARKETS ARE OVERHEATED AFTER THE ECONOMY EXPANDED 12 LAST YEAR IT FEARS THIS RAPID PACE COULD REKINDLE THE HIGH INFLATION OF 1988 OFFICIALLY 185 BUT ESTIMATED AT 40 THAT PRODUCED SOCIAL UNREST LAST YEAR'S 62 INFLATION WAS THE HIGHEST RATE SINCE 1988 DESPITE THE FREEZE ON ZONES CHINA IS ALLOWING NEW STOCK ISSUES AND PREMIER LI PENG NOW IS VISITING SOUTHERN CHINA PERCEIVED AS ANOTHER ENDORSEMENT OF THE REGION'S BOOMING ECONOMIC DEVELOPMENT MEANWHILE SHENZHEN WHICH BORDERS HONG KONG HAS BEGUN TRIAL OPERATIONS OF CHINA'S FIRST PROPERTYRIGHTS EXCHANGE WHICH COULD BE LAUNCHED BY MARCH THE EXCHANGE WILL BE OPEN TO STATEOWNED PRIVATE AND FOREIGN FIRMS AND JOINT VENTURES DESPITE A POLICE ESCORT SHOTS WERE FIRED AT A BUS CARRYING ABOUT 20 JAPANESE TOURISTS IN SOUTHERN EGYPT WHERE A BRITISH WOMAN WAS SHOT DEAD BY MUSLIM MILITANTS IN OCTOBER NO ONE WAS HURT THE MILITANTS WHO WANT TO FORM AN ISLAMIC STATE LAST YEAR BEGAN ATTACKING TOURISTS VITAL TO THE ECONOMY NORTH KOREA HAS IMPOSED RESTRICTIONS ON TRAVEL AND ACCESS TO NEWSPAPERS BY RESIDENT FOREIGNERS THE KYODO NEWS AGENCY SAID THE TRAVEL CURBS APPLY TO NAMPO A COASTAL RESORT POPULAR AMONG DIPLOMATS AND BUSINESS PEOPLE 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 9301060017 930106 BUSINESS BRIEF BELDING HEMINWAY CO BID TOTALING 665 MILLION RECEIVED FROM NOEL GROUP BELDING HEMINWAY CO A SPECIALTY TEXTILE MAKER THAT PUT ITSELF UP FOR SALE ALMOST A YEAR AGO SAID NOEL GROUP INC OFFERED TO BUY IT FOR 35 A SHARE OR 665 MILLION BELDING SAID THE OFFER FROM NOEL AN INVESTMENT COMPANY IS SUBJECT TO SEVERAL CONDITIONS INCLUDING NOEL'S SECURING PERMANENT DEBT FINANCING AND TO BELDING'S AGREEMENT THAT IT WON'T SOLICIT ANY OFFER TO ACQUIRE BELDING OR ANY OF ITS ASSETS BOTH COMPANIES ARE BASED IN NEW YORK BELDING'S VICE PRESIDENT AND TREASURER RONALD V KAPLAN SAID THE COMPANY WAS CONSIDERING THE OFFER BUT DECLINED TO SAY MORE PENDING A REVIEW OF THE OFFER BY BELDING'S BOARD BELDING WHICH MAKES THREADS AND SPECIALTY FABRICS HAD FLAT NET INCOME IN THE THIRD QUARTER OF 593000 OR 30 CENTS A SHARE ON A 5 DECLINE IN REVENUE TO 325 MILLION 9301060016 930106 POLITICS & POLICY AIR FORCE TWO FLIES QUAYLE AND HIS PALS TO SKI THEN TO GOLF TAXPAYERS TO PAY ABOUT 15000 FOR VICE PRESIDENT'S JAUNT TO COLORADO AND ARIZONA BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SO YOU'RE SKIING IN VAIL AND YOU AND YOUR BUDDIES WANT TO GO SOMEWHERE WARM TO PLAY GOLF WHAT DO YOU DO IF YOU'RE DAN QUAYLE YOU CALL THE AIR FORCE ON DEC 28 THE VICE PRESIDENT AND TWO FRIENDS TRAVELED ON AIR FORCE TWO FROM VAIL COLO TO LUKE AIR FORCE BASE IN GLENDALE ARIZ WHERE THEY APPARENTLY PLAYED GOLF AT NEARBY SCOTTSDALE COST TO TAXPAYERS AT LEAST 15000 BESIDES PLAYING GOLF THE VICE PRESIDENT'S OFFICE SAID HE VISITED HIS PARENTS WHO HAVE A RETIREMENT HOME IN THE AREA AND HIS GRANDMOTHER THE GROUP FLEW BACK TO VAIL ON THE SAME PLANE THE NEXT DAY MR QUAYLE'S OFFICE DECLINED TO DISCUSS THE TRIP'S COST OR PROVIDE FURTHER DETAILS ABOUT HIS ITINERARY BUT THE AIR FORCE LISTS THE MINIMUM REIMBURSEMENT RATE FOR THE CONVERTED DC9 MILITARY PLANE THAT WAS USED AT 4591 PER FLIGHT HOUR THE JET PROBABLY TOOK ABOUT THREE HOURS TO MAKE THE ROUNDTRIP JOURNEY AVIATION ANALYSTS SAID THAT PUTS THE FLYING COST AT ABOUT 13700 NOT TO MENTION OTHER EXPENSES THE VICE PRESIDENT ISN'T REQUIRED TO REIMBURSE THE AIR FORCE FOR PERSONAL TRIPS BECAUSE WHITE HOUSE RULES DICTATE THAT HE FLY ON AIR FORCE TWO FOR SECURITY AND COMMUNICATIONS REASONS ANY TIME THE VICE PRESIDENT TRAVELS HE MUST TRAVEL ON AIR FORCE TWO SAID QUAYLE SPOKESMAN DAVID BECKWITH HE'S GOT NO CHOICE STILL THE VICE PRESIDENT'S EXCURSION DIDN'T SIT WELL WITH SOME WITH TWO WEEKS TO GO IN THIS ADMINISTRATION ISN'T THIS A TRIP THAT COULD HAVE WAITED UNTIL HE WAS A PRIVATE CITIZEN COMPLAINED REP BOB WISE D WVA WHO HAS INVESTIGATED THE USE OF GOVERNMENT PLANES BY ADMINISTRATION OFFICIALS THOMAS SCHATZ PRESIDENT OF CITIZENS AGAINST GOVERNMENT WASTE A NONPROFIT GROUP IN WASHINGTON AGREED IT DOESN'T SOUND LIKE THE KIND OF THING THE TAXPAYERS SHOULD BE PAYING FOR ACCOMPANYING MR QUAYLE WERE HIS COUSIN BRADLEY QUAYLE VICE PRESIDENT OF RESORT DEVELOPMENT FOR VAIL ASSOCIATES INC WHICH OWNS AND OPERATES VAIL AND BEAVER CREEK SKI RESORTS AND MICHAEL SHANNON PRESIDENT OF KSL ENTERPRISES GROUP LTD A NEW FIRM THAT EARLIER THIS YEAR TEAMED UP WITH KOHLBERG KRAVIS ROBERTS & CO THE NEW YORK INVESTMENT COMPANY TO SEEK ACQUISITIONS IN THE RESORT INDUSTRY SPOKESMEN FOR BOTH DECLINED TO COMMENT JOHN HOWARD COUNSEL TO MR QUAYLE SAID THE VICE PRESIDENT'S TWO COMPANIONS WON'T BE REQUIRED TO PAY FOR THE FLIGHT PEOPLE WHO TRAVEL AS THE VICE PRESIDENT'S GUESTS AREN'T REQUIRED TO REIMBURSE THE GOVERNMENT HE SAID CITING RULES ON TRAVEL ISSUED BY THE OFFICE OF MANAGEMENT AND BUDGET QUESTIONS ABOUT THE USE OF GOVERNMENT PLANES HAVE DOGGED THE BUSH ADMINISTRATION JOHN SUNUNU RESIGNED AS WHITE HOUSE CHIEF OF STAFF IN DECEMBER 1991 PARTLY BECAUSE OF POLITICAL FALLOUT GENERATED BY HIS USE OF GOVERNMENT PLANES FOR PERSONAL TRIPS HIS SUCCESSOR SAMUEL SKINNER MADE LIBERAL USE OF FEDERAL AVIATION ADMINISTRATION JETS WHILE TRANSPORTATION SECRETARY MEMBERS OF CONGRESS TOO HAVE BEEN TAKEN TO TASK FOR THEIR PENCHANT FOR TAKING GOVERNMENT JUNKETS 9301060015 930106 HE HASN'T GOT ANYTHING TO SPOOF SPAGHETTI AND MEAT SAUCE YET BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL KEVIN JOHNSON IS THE KIND OF ENTREPRENEUR WHO DRIVES COMPANIES NUTS HE MAKES PRODUCT PARODIES LIKE ROADKILL HELPER FROM A DISTANCE A BOX OF IT LOOKS IDENTICAL TO THE HAMBURGER HELPER MEAL STRETCHERS MADE BY GENERAL MILLS INC GENERAL MILLS ISN'T AMUSED A COMPANY ATTORNEY WROTE TO MR JOHNSON COMPLAINING THAT HIS ROADKILL HELPER PACKAGE IS PRACTICALLY A COPY OF OUR OWN ONLY THE IMAGES HAVE BEEN TWISTED TO FIT YOUR TRULY OFFENSIVE THEME THE MINNEAPOLISBASED FOOD GIANT DEMANDED THAT HE STOP MR JOHNSON DID AGREE TO CEASE MAKING ROADKILL HELPER AFTER THE CURRENT INVENTORY RUNS OUT BUT HIS BUSINESS GAG FOODS CO IS ROLLING OUT A LINE EXTENSION SPOTTED OWL HELPER THE 41YEAROLD PROJECTS PRINTER FROM WOODLAND PARK COLO SAYS HE'LL LOAD UP HIS CAR SOON WITH BOXES OF THAT SPOOF AND HEAD FOR THE PACIFIC NORTHWEST THERE HE HOPES TO CASH IN ON CONTROVERSY OVER THE ENDANGERED BIRD BY HITTING EVERY BAR CONVENIENCE STORE AND TRUCK STOP ALONG THE WAY LIKE ITS PREDECESSOR IT WILL RETAIL FOR ABOUT 3 IT'S UNCLEAR WHAT GENERAL MILLS MIGHT DO ABOUT SPOTTED OWL HELPER WE PROTECT OUR TRADEMARKS WHEN WE THINK THEY'VE BEEN SUBJECTED TO MISUSE A SPOKESMAN SAYS ADDING THAT THE COMPANY VIEWS INFRINGEMENT VERY SERIOUSLY MR JOHNSON HATCHED THE HELPER KNOCKOFFS AFTER SEEING A SQUASHED ANIMAL ON THE ROAD SCRAPING UP 15000 HE HIRED AN ARTIST CONTRACTED FOR BOXES TO BE PRINTED AND BY HAND FILLED THOUSANDS WITH DRIED MACARONI FROM A LOCAL GROCERY THEN HE SENT FREE SAMPLES IN SHRINKWRAP TO TRUCK STOPS AROUND THE COUNTRY WHEN POSTAL WORKERS STARTED CALLING TO ASK WHERE THEY COULD BUY THE STUFF I KNEW IT WAS WORKING HE SAYS COMING SOON ROAD PIZZA ANOTHER TERM FOR ROAD KILL ITS PIZZAMIX BOXES FEATURE A CREATURE REMARKABLY SIMILAR TO THE ENERGIZER BUNNY AFTER ENCOUNTERING AN 18WHEELER ONE OF ITS EARS IS MISSING AND THE RABBIT'S SUNGLASSES ARE BROKEN BUT IT'S NOT GHASTLY IT'S CARTOONISH AND FUNNY MR JOHNSON INSISTS HE PRODUCES SUCH ITEMS TO MAKE PEOPLE HAPPY AND OF COURSE MAKE A BUCK A SPOKESMAN FOR ST LOUISBASED RALSTON PURINA CO WHOSE EVEREADY BATTERY UNIT OWNS THE SPOKESBUNNY SAYS IT TAKES APPROPRIATE ACTION AT ANY UNAUTHORIZED USE OF ITS INTELLECTUAL PROPERTIES 9301060014 930106 WHO'S NEWS MICROSOFT NAMES EXECUTIVE FOR DATABASE OPERATIONS REDMOND WASH MICROSOFT CORP NAMED ROGER HEINEN A FORMER APPLE COMPUTER INC EXECUTIVE TO HEAD UP ITS IMPORTANT DATABASE OPERATIONS THE MOVE MEANS THAT MR HEINEN 42 YEARS OLD WILL COMMAND ONE OF MICROSOFT'S KEY BATTLEFRONTS THE SOFTWARE GIANT IS LOCKED IN AN INCREASINGLY FEROCIOUS STRUGGLE WITH BORLAND INTERNATIONAL INC FOR MARKET SHARE IN THE DATABASE BUSINESS WHICH MICROSOFT CHAIRMAN BILL GATES HAS TARGETED AS AN AREA OF FUTURE GROWTH FOR THE COMPANY IN OCTOBER MICROSOFT RELEASED A NEW DATABASE PRODUCT CALLED ACCESS AIMED SQUARELY AT A MARKET SEGMENT DOMINATED BY BORLAND MICROSOFT OFFERED AN INITIAL DISCOUNT OF 86 OFF ACCESS'S NORMAL PRICE SETTING THE STAGE FOR A PRICE WAR MR HEINEN'S TITLE AT MICROSOFT WILL BE VICE PRESIDENT DATABASE AND DEVELOPMENT TOOLS DIVISION A NEWLY CREATED POSITION AT APPLE MR HEINEN WAS SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S MACINTOSH SOFTWARE ARCHITECTURE DIVISION IN CUPERTINO CALIF 9301060012 930106 REVIEW & OUTLOOK EDITORIAL ASIDES UNLUCKY UN UN SECRETARYGENERAL BOUTROS BOUTROSGHALI HAS HAD A RUN OF BAD LUCK LATELY STONED IN SOMALIA SPAT UPON IN BOSNIA HE SHOWS UP IN ETHIOPIA AND RIOTS ENSUE LET US HOPE HIS ITINERARY HAS NO PLANS TO VISIT CROWN HEIGHTS OR SOUTHCENTRAL LOS ANGELES 9301060011 930106 NEWSPRINT PRODUCTION IN CANADA INCREASED 106 IN NOVEMBER MONTREAL CANADIAN NEWSPRINT PRODUCTION ROSE 106 IN NOVEMBER FROM A YEAR EARLIER THE CANADIAN PULP AND PAPER ASSOCIATION SAID CANADIAN MILLS PRODUCED 794000 METRIC TONS OF NEWSPRINT IN NOVEMBER COMPARED WITH 718000 METRIC TONS A YEAR EARLIER A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS THE CANADIAN NEWSPRINT INDUSTRY OPERATED AT 97 OF CAPACITY IN NOVEMBER UNCHANGED FROM OCTOBER AND UP FROM 83 A YEAR EARLIER THE INDUSTRY ASSOCIATION REPORTED NOVEMBER SHIPMENTS ROSE 119 TO 786000 METRIC TONS FROM 702000 A YEAR EARLIER NOVEMBER SHIPMENTS TO THE US ROSE 107 TO 536000 METRIC TONS FROM 485000 A YEAR EARLIER SHIPMENTS TO CANADIAN CUSTOMERS ROSE 75 TO 94000 METRIC TONS FROM 88000 AND SHIPMENTS TO OTHER MARKETS ROSE 196 TO 155000 METRIC TONS FROM 129000 A YEAR EARLIER CANADIAN NEWSPRINT MILLS' INVENTORIES WERE 405000 METRIC TONS AT THE END OF NOVEMBER COMPARED WITH A REVISED 396000 METRIC TONS AT THE END OF OCTOBER AND 649000 A YEAR EARLIER FOR THE FIRST 11 MONTHS OF THE YEAR CANADIAN PRODUCTION FELL 26 TO 8141000 METRIC TONS FROM 8362000 A YEAR EARLIER 9301060010 930106 WHO'S NEWS BALLY MANUFACTURING CORP BALLY MANUFACTURING CORP CHICAGO ROBERT CONOVER 46 YEARS OLD A VICE PRESIDENT OF THE COMPANY'S BALLY'S PARK PLACE INC SUBSIDIARY JOHN DWYER 40 CORPORATE COMPTROLLER AND HAROLD MORGAN 36 A VICE PRESIDENT OF THE BALLY'S HEALTH & TENNIS CORP SUBSIDIARY WERE NAMED VICE PRESIDENTS OF THIS OPERATOR OF CASINO HOTEL RESORTS AND FITNESS CENTERS 9301060009 930106 LETTERS TO THE EDITOR WHY WE STILL NEED THE ELECTORAL COLLEGE WALTER BERNS'S DEC 2 RULE OF LAW COLUMN IS THE RIGHT RESPONSE TO THE DUMPTHEELECTORALCOLLEGE CROWD YES THE ELECTORAL COLLEGE AMPLIFIES AND EXAGGERATES THE WINNER OF THE POPULAR VOTE SO THAT ONE AND ONLY ONE CANDIDATE IS THE DECISIVE WINNER OF THE ELECTION BUT THE ELECTORAL COLLEGE ALSO REINFORCES THE NOTION EMBODIED IN THE CONSTITUTION THAT THE FEDERAL GOVERNMENT EXISTS AT THE WILL OF THE STATES WHO HAVE CEDED CERTAIN RIGHTS TO A FEDERATED GOVERNMENT THE POWER OF THIS FEDERATED GOVERNMENT PROCEEDS FROM THE POWER OF THE SEVERAL STATES IT IS THE STATES THAT COLLECTIVELY ELECT THE PERSON TO PRESIDE IE THE PRESIDENT OVER THIS GOVERNMENT THUS EACH STATE HAS ITS SAY THE POPULAR VOTE WHICH IS THEN COMMUNICATED VIA ITS ELECTORS TO CHOOSE THE PRESIDENT THE ELECTORAL COLLEGE REMINDS US EVERY FOUR YEARS THAT THE UNITED STATES IS A FEDERATION OF STATES NOT A COLLECTION OF ARBITRARILY SUBDIVIDED PROVINCES 9301060008 930106 CORPORATE FOCUS NEW PRODUCTS PAVE CHRYSLER CORP'S PATH FOR THIS YEAR EXPECTATIONS HIGH FOR LINES INCLUDING PICKUP BUT FINANCIAL CUSHION IS THIN BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT CHRYSLER CORP MADE A SMASHING PRODUCT DEBUT YESTERDAY ROBERT A LUTZ PRESIDENT STOOD NEXT TO THE DRAPED OUTLINE OF WHAT LOOKED LIKE CHRYSLER'S NEW PICKUP TRUCK AT DETROIT'S AUTO SHOW BUT THERE WAS ONLY PAPER AND FOAMBOARD UNDERNEATH THE SHEET THE TRUCK WAS HIDDEN ON A PERCH ATTACHED TO THE CEILING ON CUE CHRYSLER'S 8000POUND PICKUP DROPPED FROM THE CEILING OF THE COBO CONVENTION HALL AND CRUSHED THE MOCKUP AS REPORTERS GASPED NOW CHRYSLER IS BETTING THAT AN ARRAY OF NEW PRODUCTS IT IS INTRODUCING THIS YEAR ON TOP OF THOSE IT LAUNCHED IN 1992 WILL MAKE A SIMILAR IMPACT NOW THAT IT FINALLY HAS FRESH PRODUCTS THE ONCEWOBBLY COMPANY NEEDS TO REGAIN ITS FINANCIAL HEALTH CHRYSLER HAS LITTLE FINANCIAL PROTECTION TO WEATHER BAD YEARS EXPECTATIONS ON WALL STREET ARE HIGH LAST YEAR CHRYSLER'S STOCK ALMOST TRIPLED AS INVESTORS AND CONSUMERS ALIKE WARMED TO THE COMPANY'S NEW JEEP GRAND CHEROKEE AND THE LH SEDAN TRIPLETS THE CHRYSLER CONCORDE DODGE INTREPID AND EAGLE VISION THIS YEAR CHRYSLER CONTINUES ITS RUN WITH THE PICKUP A LONGER MORE LUXURIOUS VERSION OF THE CONCORDE AND THE NEON A NEW SMALL CAR WHAT'S MORE CHRYSLER'S WAVE OF NEW PRODUCTS IS CRESTING JUST AS AN ECONOMIC RECOVERY SEEMS TO BE SETTING IN ANALYSTS SAY CHRYSLER APPEARS TO BE DOING EVERYTHING RIGHT IT'S GOING TO BE A HELL OF A YEAR FOR CHRYSLER SAYS DAVID E COLE OF THE UNIVERSITY OF MICHIGAN'S AUTOMOTIVE STUDY GROUP THAT'S JUST AS WELL HE ADDS BECAUSE THERE ISN'T A LOT OF MONEY AT THE BOTTOM OF THE BARREL INDEED CHRYSLER'S UNFUNDED PENSION LIABILITY STANDS AT 44 BILLION DEBT ISSUED BY CHRYSLER AND ITS CHRYSLER FINANCIAL UNIT REMAINS AT JUNKBOND RATINGS WHAT'S MORE CHRYSLER HAS NO EUROPEAN OPERATION TO SPEAK OF RIGHT NOW THAT'S GOOD NEWS AS THE EUROPEAN ECONOMY SPUTTERS BUT OVER THE LONG TERM IT MEANS THE COMPANY'S FORTUNES ARE TOO CLOSELY TIED TO THE US BUSINESS CYCLE ALREADY CHRYSLER'S NEW CHAIRMAN ROBERT J EATON SAYS IT MUST SALT AWAY 5 BILLION TO WEATHER THE NEXT RECESSION MR EATON SAYS REBUILDING CHRYSLER'S BATTERED BALANCE SHEET WILL BE ONE OF HIS PRIORITIES HE WANTS TO KNOCK 2 BILLION OR MORE OFF THE 44 BILLION PENSION LIABILITY DURING THE NEXT FIVE YEARS BUT IF YOU ASK MR EATON WHAT LOOKS GOOD FOR CHRYSLER IN 1993 HE HAS A ONEWORD ANSWER PRODUCT CHRYSLER'S ABILITY TO MEET ITS FINANCIAL GOALS DEPENDS ON ITS ABILITY TO KEEP ITS PRODUCT LINEUP FRESH THAT WAS THE COMPANY'S MOST NOTABLE FAILURE IN THE LATE 1980S UNDER FORMER CHAIRMAN LEE A IACOCCA WHO RETIRED LAST WEEK UNTIL LAST SUMMER ALL OF CHRYSLER'S NEW PRODUCTS WERE SIMPLY DERIVATIVES OF THE KCAR THAT WAS LAUNCHED IN 1980 BUT THE PICKUP TRUCK CHRYSLER DROPPED ONTO THE AUTOSHOW FLOOR SUGGESTS THE COMPANY'S EFFORT TO REJUVENATE ITS ONCELACKLUSTER LINEUP OF VEHICLES CONTINUES AFTER OFFERING THE SAME UNIMAGINATIVE DODGE RAM PICKUP FOR 20 YEARS CHRYSLER'S LATEST OFFERING IS A BOLD DEPARTURE FROM THE PAST IT COMBINES A BIG MACHO FRONT END AND AN OPTIONAL EXTREMELY POWERFUL V10 ENGINE WITH MORE DOWNTOEARTH FEATURES INCLUDING AN AIRBAG AND A COMPARTMENT FOR CLIPBOARDS THE TRUCK ALSO HAS CARLIKE STYLING ROUND FLARED SIDES GIVING IT A SLEEK LOOK CHRYSLER EXPECTS SALES OF THE NEW TRUCKS TO HIT 250000 A YEAR UP FROM 80000 FULLSIZE TRUCKS CURRENTLY THAT WOULD DOUBLE THE AUTO MAKER'S SHARE OF THE GROWING AND PROFITABLE PICKUP MARKET WHICH IS PROTECTED BY A 25 TARIFF THE TRUCK ALREADY IS WINNING APPLAUSE FROM AUTOMOTIVE CRITICS AND SECURITIES ANALYSTS IT'S A REAL DIFFERENT LOOK THEY WILL SELL A LOT OF THEM SAYS WENDY NEEDHAM OF SMITH BARNEY HARRIS UPHAM & CO ALSO COMING THIS YEAR A NEW CHRYSLER NEW YORKER THE COMPANY'S LUXURY SEDAN WHICH MAKES ITS OFFICIAL DEBUT TODAY AT THE DETROIT AUTO SHOW WHILE IT'S A DERIVATIVE OF THE CHRYSLER CONCORDE IT COMBINES ADDED LENGTH WITH A BOXIER AND ROOMIER ROOF LINE LATER THIS YEAR CHRYSLER WILL LAUNCH THE NEON COMPACTS DON'T MAKE BIG MONEY FOR CAR COMPANIES BUT CHRYSLER OFFICIALS SAY THEY HAVE SHAVED ENOUGH COST MAINLY IN THE PRODUCTDEVELOPMENT PROCESS THAT THE NEON WILL AT LEAST BREAK EVEN UNLIKE GENERAL MOTORS CORP'S SATURN CARS AND FORD MOTOR CO'S ESCORT CHRYSLER NEEDS THE SMALL CAR TO DRAW BUYERS TO ITS SHOWROOMS AND TO MEET FEDERAL FUEL ECONOMY REGULATIONS AMID ALL THIS CHRYSLER MUST BE CAREFUL THAT EXPECTATIONS DON'T OUTRUN ITS PERFORMANCE THE COMPANY SURPRISED WALL STREET WITH HIGHERTHANEXPECTED THIRDQUARTER PROFIT OF 202 MILLION OR 62 CENTS A SHARE NOW SEVERAL ANALYSTS ARE PREDICTING THAT THE AUTO MAKER WILL EARN A COOL 1 BILLION NEXT YEARUP FROM AN ESTIMATED 500 TO 550 MILLION IN 1992 BEFORE A POSSIBLE ACCOUNTING CHARGE YOU'RE LOOKING AT HIGHER INDUSTRY VOLUME IN 1993 EARNINGS MOMENTUM NEW PRODUCTS GOING STRONG AND NEW INTRODUCTIONS AT A HIGH CLIP SAYS MICHAEL P WARD OF KIDDER PEABODY & CO ONE REASON FOR THE BULLISH ESTIMATES CHRYSLER WILL CONTINUE TO BENEFIT FROM LAST YEAR'S INTRODUCTIONS THE HIGHLY PROFITABLE GRAND CHEROKEE INTRODUCED LAST SPRING IS NOW SELLING AT CAPACITY SAYS LARRY BAKER GENERAL MANAGER OF CHRYSLER'S JEEPEAGLE DIVISION MR BAKER PREDICTS THAT HIS DIVISION WILL SHOW A 20 TO 25 SALES INCREASE IN 1993 OVER 1992 IN ADDITION CHRYSLER'S LH MIDSIZE SEDANS WERE INTRODUCED TOO LATE IN THE YEAR TO HAVE MUCH EFFECT ON 1992'S EARNINGS BUT THAT LOOKS LIKELY TO CHANGE THIS YEAR CHRYSLER SAYS IT HAS RECEIVED SO MANY ORDERS THAT IT IS EXPANDING PRODUCTION THE LH IS A NEW PRODUCT OF REVOLUTIONARY DESIGN WITH ALL THE FEATURES PEOPLE ARE LOOKING FOR SAYS MR WARD I THINK THEY WILL SELL EVERY ONE THEY CAN PRODUCE 9301060007 930106 BUSH BUDGET CUTS ESTIMATE OF S&L COSTS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BUSH ADMINISTRATION'S FINAL BUDGET CONTAINS SOME GOOD NEWS FOR PRESIDENTELECT CLINTON THE COST OF COMPLETING THE SAVINGSANDLOAN CLEANUP IS LIKELY TO BE 10 BILLION LESS THAN CONGRESS ESTIMATED LAST YEAR THE BUDGET DOCUMENTS THAT MR BUSH WILL RELEASE TODAY ESTIMATE THAT IT WILL TAKE AN ADDITIONAL 32 BILLION OVER THE NEXT FIVE FISCAL YEARS TO COVER REMAINING THRIFT LOSSES LAST YEAR CONGRESS UNSUCCESSFULLY TRIED TO APPROPRIATE 42 BILLION TO COVER THE COST OF PROTECTING DEPOSITS IN MORE THAN 730 FAILED THRIFTS BEING HANDLED BY THE RESOLUTION TRUST CORP WHICH SELLS THE ASSETS OF CLOSED S&LS SHORTLY AFTER MR CLINTON TAKES OFFICE ON JAN 20 HE WILL FACE THE UNPLEASANT TASK OF ASKING CONGRESS TO APPROPRIATE THE FUNDS NECESSARY TO COMPLETE THE THRIFT CLEANUP THE LOWER ESTIMATE WHICH REFLECTS THE IMPACT OF LOW INTEREST RATES MORE STABLE REAL ESTATE MARKETS AND IMPROVED COSTRECOVERY BY THE RTC SHOULD MAKE THE TASK SOMEWHAT LESS PAINFUL BOTH MR CLINTON'S ADVISERS AND A NUMBER OF CONGRESSIONAL DEMOCRATS HAVE URGED HIM TO MOVE QUICKLY SO THAT THE RTC CAN FINISH ITS JOB AND REP CHARLES SCHUMER SAID HE HAS ADVISED THAT THE ACTION BE TAKEN ALL AT ONCE IN ORDER TO PUT THE ISSUE TO REST THE NEW YORK DEMOCRAT IS A MEMBER OF THE HOUSE BANKING COMMITTEE THE CLINTON TEAM IS LOOKING AT A WIDE RANGE OF BANKING AND THRIFT ISSUES INCLUDING WHETHER TO EASE REGULATIONS TO SPUR LENDING HOW TO ENCOURAGE BANKS TO FINANCE DEVELOPMENT IN INNER CITIES AND WHETHER TO COMBINE SOME OF THE FOUR BANK AND THRIFT REGULATORY AGENCIES ADVISERS WANT MR CLINTON TO AVOID TACKING SUCH PROPOSALS ONTO THE RTC REFUNDING BILL ARGUING THAT A NARROWER BILL WILL GET THROUGH CONGRESS MORE QUICKLY MR CLINTON MAY WANT TO ASK FOR MORE THAN 32 BILLION TO BUILD IN A MARGIN OF ERROR IN CASE THE ACTUAL COSTS ARE HIGHER THAN THE BUSH TEAM ESTIMATES WORSENING REAL ESTATE CONDITIONS IN CALIFORNIA COULD DRIVE THE COST UP SHARPLY FOR INSTANCE BUT A SENIOR BUSH ADMINISTRATION OFFICIAL SAID THAT THE FINAL COST IS JUST AS LIKELY TO FALL SHORT OF THE ADMINISTRATION'S ESTIMATE THAN TO EXCEED IT SOME CONGRESSIONAL ESTIMATES OF THE REMAINING COSTS HAVE CLIMBED AS HIGH AS 50 BILLION IF THE 32 BILLION ESTIMATE IS CORRECT THE COST OF THE THRIFT CLEANUP BETWEEN 1989 WHEN CONGRESS SET UP THE RTC TO 1998 WILL BE 119 BILLION TOWARD THE LOWER RANGE OF THE 100 BILLION TO 160 BILLION ESTIMATE THE BUSH ADMINISTRATION MADE IN THE PAST SO FAR CONGRESS HAS APPROVED 87 BILLION FOR THE RTC ALBERT CASEY THE RTC'S CHIEF EXECUTIVE RECENTLY PREDICTED THAT IT WILL TAKE ABOUT 25 BILLION TO COVER THE COSTS OF ALL THRIFTS THAT ARE EXPECTED TO FAIL BY SEPT 30 THOSE FAILURES WOULD BE ON TOP OF THE 80 INSTITUTIONS THAT HAVE ALREADY FAILED BUT HAVEN'T BEEN CLOSED YET BECAUSE THE RTC RAN OUT OF MONEY LAST YEAR WHEN CONGRESS REFUSED TO APPROVE MORE FUNDS IN ADDITION THE SAVINGS ASSOCIATION INSURANCE FUND WHICH MUST BEAR THE COST OF THRIFT FAILURES AFTER SEPT 30 WILL NEED ABOUT 7 BILLION MR CASEY HAS RECOMMENDED CLOSING THE RTC BY THE END OF THIS YEAR AND TURNING THE REMAINING WORK OVER TO THE FEDERAL DEPOSIT INSURANCE FUND WHICH CLOSES FAILED BANKS THIS WOULD HAVE THE POLITICAL ATTRACTION OF ELIMINATING AN AGENCY THAT SYMBOLIZES THE S&L DEBACLE AND THE HUGE COST IT INFLICTED ON TAXPAYERS UNDER CURRENT LAW THE RTC WILL CLOSE IN 1996 SOME CLINTON ADVISERS HOWEVER HAVE RECOMMENDED KEEPING OPEN THE RTC AND TURNING IT INTO AN AGENCY THAT WOULD DISPOSE OF OTHER ASSETS THAT THE GOVERNMENT MUST SELL INCLUDING PROPERTY SEIZED TO COVER UNPAID TAXES THIS WOULD ALLOW THE GOVERNMENT TO USE THE CONSIDERABLE EXPERTISE THE RTC HAS DEVELOPED IN SELLING ASSETS QUICKLY THE ADMINISTRATION'S REDUCED THRIFTCOST ESTIMATE IS JUST THE LATEST SIGN THAT THE WORST STRING OF FINANCIAL FAILURES SINCE THE DEPRESSION IS DRAWING TO AN END LAST YEAR 120 BANKS FAILED A HIGH NUMBER BUT THE LOWEST LEVEL SINCE 1986 WHEN THE REAL ESTATE PROBLEMS IN THE OIL PATCH AND THE FARM BELT BEGAN TO SPREAD ACROSS THE COUNTRY PROFITS IN BOTH THE BANK AND THRIFT INDUSTRIES ARE RUNNING AT RECORD LEVELS AND CAPITAL THE PRIMARY CUSHION AGAINST FAILURE HAS RISEN SHARPLY AS INSTITUTIONS HAVE SCRAMBLED TO MEET NEW STANDARDS ADOPTED BY CONGRESS IN 1991 9301060006 930106 BUSINESS BRIEF RH MACY & CO RETAILER'S DECEMBER SALES WERE BETTER THAN EXPECTED RH MACY & CO SAID YESTERDAY IT HAD A BETTERTHANEXPECTED CHRISTMAS SEASON WITH DECEMBER SAMESTORE SALES RISING 34 MYRON ULLMAN COCHAIRMAN SAID IN AN INTERVIEW THAT AFTER REPAYING EARLIER BORROWINGS THE RETAILER ENDED THE MONTH WITH 280 MILLION IN CASH ON HAND 60 MILLION MORE THAN EXPECTED DECEMBER WAS VERY ENCOURAGING FOR US SAID MR ULLMAN STRONG MARKETS INCLUDED FLORIDA WHERE REVENUE WAS UP 22 AND GEORGIA WHERE SALES ROSE 13 BUT SAMESTORE SALES WERE DOWN 05 IN SOUTHERN CALIFORNIA AND DOWN 5 IN NORTHERN CALIFORNIA SEPARATELY MACY'S WHICH IS OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION SAID THAT IT HAD A LOSS OF 336 MILLION ON REVENUE OF 5827 MILLION IN THE FOURWEEKS ENDED NOV 28 9301060005 930106 FOREIGN EXCHANGE GERMANY FRANCE VOW TO DEFEND FRANC BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT 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 MEANWHILE FELL AS INVESTORS TOOK PROFITS STERLING WAS THE BIGGEST BENEFICIARY AIDED BY DEMAND FROM INVESTMENT FUNDS IT JUMPED 33 AGAINST THE US CURRENCY DEALERS SAID THE DOLLAR HAD BEEN RIPE FOR A CORRECTION THE JOINT COMMUNIQUE ISSUED BY GERMANY AND FRANCE CAME A DAY AFTER THE TWO NATIONS' CENTRAL BANKS INTERVENED IN THE CURRENCY MARKET TO SUPPORT THE FRANC BUT THE INTERVENTION GAVE THE FRENCH CURRENCY ONLY TEMPORARY RESPITE AS THE RECENT TURMOIL ROCKING THE EUROPEAN MONETARY SYSTEM CARRIED OVER INTO THE NEW YEAR IN THE COMMUNIQUE THE GERMAN AND FRENCH CENTRAL BANKS RESTATED THEIR DETERMINATION TO DEFEND THE EXCHANGERATE LINK BETWEEN THE FRANC AND THE MARK IN THE EUROPEAN MONETARY SYSTEM'S EXCHANGE RATE MECHANISM THE TWO BANKS SAID THE CURRENT EXCHANGE RATE BETWEEN THE TWO CURRENCIES WAS FULLY JUSTIFIED BY ECONOMIC FUNDAMENTALS HINTING AT FUTURE OPENMARKET INTERVENTION IF NECESSARY THE BANK OF FRANCE AND GERMANY'S BUNDESBANK SAID THEY WOULD CONTINUE TO COOPERATE TO ENSURE THE SMOOTH FUNCTIONING OF THE ERM AFTER HOPING TO AVOID RAISING INTEREST RATES THE BANK OF FRANCE YESTERDAY REPLACED ITS 10 FIVE TO 10DAY BANKREFINANCING RATE WITH AN OVERNIGHT FACILITY PEGGED AT A HIGHER 12 RATE THE SUM OF YESTERDAY'S ACTIONS WAS ENOUGH TO PUSH THE FRENCH FRANC FURTHER AWAY FROM ITS ERM TRADING FLOOR OF 34303 FRANCS TO THE MARK BY YESTERDAY AFTERNOON IN EUROPE THE FRENCH CURRENCY HAD STRENGTHENED AND THE MARK WEAKENED TO 34112 FRANCS FROM 34167 ON MONDAY STILL THE MOVES WERE ONLY A LIMITED SUCCESS CURRENCY EXPERTS SAID IN THE ABSENCE OF A BUNDESBANK PLEDGE TO LOWER GERMAN INTEREST RATES TO ADD BITE TO THE RESCUE PACKAGE ULTIMATELY WE HAVE TO SEE LOWER GERMAN INTEREST RATES SAID CHRISTOPHER POTTS AT BANQUE INDOSUEZ IN PARIS WHAT THIS FIGHT IS ABOUT IS TO BUY TIME UNTIL THIS HAPPENS IN THE WEEKS TO COME THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL WILL HOLD ITS FIRST MEETING OF THE YEAR TOMORROW THE GERMAN CENTRAL BANK IN RECENT WEEKS HAS BEEN PUTTING MORE EMPHASIS ON ANTIINFLATION POLICIES THAN ON LOWER INTEREST RATES SUGGESTING TO MANY ANALYSTS THAT A GERMAN RATE REDUCTION MIGHT NOT ARRIVE UNTIL FEBRUARY OR LATER YESTERDAY'S JOINT STATEMENT REITERATES ONE THE TWO CENTRAL BANKS MADE LATE LAST SEPTEMBER WHEN THE FRANC INITIALLY CAME UNDER INTENSE SELLING PRESSURE AT THE TIME THEY SUCCEEDED IN DEFENDING THE FRENCH CURRENCY BUT ANALYSTS SAID THAT THE REPEATED ROUNDS OF INTERVENTION NEEDED TO BOLSTER THE FRANC LEFT FRANCE'S FOREIGN CURRENCY RESERVES SEVERELY DEPLETED IF THE FRENCH WERE FORCED TO DEVALUE THE FRANC THIS TIME OTHER COUNTRIES COULD BLAME GERMANY AND ITS HIGH INTEREST RATES FOR THE COLLAPSE OF EUROPE'S EXCHANGE RATE MECHANISM IN WHICH NINE EUROPEAN CURRENCIES TRADE WITHIN SPECIFIC BANDS OF ONE ANOTHER ECONOMISTS CONTEND THAT WITHOUT THE FRANC THE ERM WOULD BE REDUCED TO A MEANINGLESS GROUPING OF THE MARK PLUS THE CURRENCIES OF A FEW OTHER SMALLER EUROPEAN COUNTRIES IN MIDSEPTEMBER SPECULATIVE ATTACKS FORCED BRITAIN AND ITALY TO PULL THE POUND AND LIRA OUT OF THE ERM THE TIMING OF THEIR REENTRY INTO THE SYSTEM REMAINS UNCERTAIN THE SPECULATIVE ASSAULTS IN WHICH TRADERS COLLECTIVELY MADE BILLIONS OF DOLLARS AT THE EXPENSE OF EUROPEAN CENTRAL BANKS ALSO PROMPTED SPAIN AND PORTUGAL TO DEVALUE THEIR CURRENCIES AGAINST THE MARK AMID CONTINUED DOUBTS ABOUT PLANS FOR EUROPEAN MONETARY UNION FOR WHICH THE MARK AND THE FRANC WOULD BE A CENTRAL LINK CURRENCY SPECULATORS HAVE SINGLED OUT THE FRANC AS A TARGET BY THE SAME TOKEN THE FRENCH AND GERMAN GOVERNMENTS ARE RALLYING BEHIND THE ERM'S CORE CURRENCY LINK TO DEFEND THE CREDIBILITY OF THE MAASTRICHT TREATY'S PLAN FOR TIGHTER CONVERGENCE ALONG THE ROAD TO A SINGLE CURRENCY BY 1999 INVESTORS SPECULATE THAT THE FRENCH ELECTIONS IN MARCH COULD YIELD A NEW GOVERNMENT LESS ATTACHED TO KEEPING THE FRANC LEVEL AGAINST THE MARK AT A TIME WHEN FRANCE NEEDS LOWER INTEREST RATES TO HELP STIMULATE ITS ECONOMY AND REDUCE A 10 UNEMPLOYMENT RATE ALSO COMING UNDER RENEWED PRESSURE ARE THE IRISH PUNT AND THE DANISH KRONE THE IRISH CURRENCY IN PARTICULAR IS CONSIDERED A LIKELY PROSPECT FOR DEVALUATION IF IT IS KNOCKED DOWN TO A LOWER LEVEL PRESSURE ON THE FRENCH FRANC COULD INTENSIFY SO FAR HOWEVER CURRENCY ANALYSTS SAY SELLING PRESSURE HAS BEEN LESS AGGRESSIVE THAN IN SEPTEMBER THE FRANC HAS BEEN HELPED BY THE DOLLAR'S RECENT RESURGENCE AGAINST THE MARK PRIOR TO YESTERDAY'S DECLINE THE DOLLAR HAD CLIMBED 45 AGAINST THE MARK OVER TWO WEEKS AND THE RISE HELPED DETER OVERSEAS FUNDS FROM GOING INTO THE GERMAN CURRENCY THE DOLLAR'S RISE AGAINST THE MARK STEMS AT LEAST IN PART FROM SPECULATION OF AN IMMINENT REDUCTION IN GERMAN INTEREST RATES PRESSURE ON THE FRANC COULD INTENSIFY IF THE BUNDESBANK DOESN'T LOWER RATES TOMORROW AND ANALYSTS ARE QUESTIONING HOW LONG THE INFLATIONFIGHTING BUNDESBANK WILL ACCEPT UNWANTED GROWTH IN THE GERMAN MONEY SUPPLY CAUSED BY INTERVENTION ON BEHALF OF THE FRANC THERE COULD COME A TIME WHEN THE GERMANS BECOME FED UP AND THE FRENCH ARE FORCED TO DEVALUE BY 5 OR 6 SAID NIKKI NELSONSMITH OF MIDLAND GLOBAL MARKETS RESEARCH IN LONDON AS FOR YESTERDAY'S TRADING OF THE US CURRENCY THERE WAS A LOT OF SELLING PRESSURE ON THE DOLLAR SAID ERIK LEHTIS VICE PRESIDENT AT CREDIT AGRICOLE IN NEW YORK BUT IT'S JUST A CORRECTION HE SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16255 MARKS DOWN FROM 16395 MARKS LATE MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 12483 YEN DOWN FROM 12535 YEN STERLING WAS TRADING AT 15503 UP FROM 15000 AGAINST THE MARK THE POUND SURGED TO 25200 MARKS FROM 24593 MARKS AT MIDDAY IN TOKYO WEDNESDAY THE DOLLAR WAS TRADING AT 12485 YEN AND L6240 MARKS 9301060002 930106 BUSINESS BRIEF ECHO BAY MINES LTD COMPANY TO TAKE A CHARGE OF 181 MILLION IN 4TH PERIOD ECHO BAY MINES LTD EDMONTON ALBERTA SAID IT WILL TAKE AN 181 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS RELATED MAINLY TO A WRITEDOWN OF A LOAN TO A JOINT VENTURE PARTNER THE PARTNER CROWN RESOURCES CORP DENVER WITHDREW FROM THE COMPANIES' KETTLE RIVER JOINT VENTURE GOLD MINE IN WASHINGTON STATE LAST MONTH IN DOING SO CROWN RESOURCES RELINQUISHED ITS 30 INTEREST IN THE MINE WHICH SERVED AS SECURITY FOR THE LOAN ECHO BAY SAID THE COMPANY SAID IT WILL WRITE DOWN THE 149 MILLION CARRYING VALUE OF THE LOAN THE BALANCE OF THE ECHO BAY CHARGE OR 32 MILLION RELATES TO A WRITEDOWN OF TWO EXPLORATION PROPERTIES ECHO BAY IS A GOLD MINING CONCERN 9301060001 930106 CLINTON MEETS US AUTO MAKERS TODAY TO DISCUSS RANGE OF INDUSTRY'S ISSUES BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL LITTLE ROCK ARK US AUTO MAKERS SEEKING ASSISTANCE IN REVIVING THEIR INDUSTRY WILL PRESS PRESIDENTELECT CLINTON TODAY ON ISSUES RANGING FROM RISING HEALTHCARE COSTS TO THE TRADE AGREEMENT WITH MEXICO AND FUELEFFICIENCY STANDARDS GEORGE STEPHANOPOULOS COMMUNICATIONS DIRECTOR FOR MR CLINTON SAID THE PRESIDENTELECT AGREED TO THE AUTO MAKERS' REQUEST FOR A MEETING BECAUSE SO MANY PENDING DECISIONS ON ECONOMIC AND TRADE ISSUES WILL AFFECT THE INDUSTRY HE CITED THE GROUP AS A KEY COMPONENT OF OUR ECONOMY STILL MR STEPHANOPOULOS WAS RELUCTANT TO SPECIFY MR CLINTON'S AGENDA AT THE SESSION HIS FIRST PARLEY WITH REPRESENTATIVES FROM A SINGLE INDUSTRY PERHAPS TO COUNTER COMPLAINTS THAT THE MEETING MIGHT BE CATERING TO A SPECIAL INTEREST MR CLINTON ALSO INVITED OWEN BIEBER OF THE UNITED AUTO WORKERS TO PARTICIPATE ASKED IF AN INCREASE IN THE GASOLINE TAX WOULD BE DISCUSSED MR STEPHANOPOULOS RESPONDED IF THEY BRING IT UP THE PRESIDENTELECT HAS BEEN HEARING CONFLICTING ADVICE FROM HIS AIDES ON WHETHER HE SHOULD INCREASE THE TAX TO CUT THE FEDERAL DEFICIT MR STEPHANOPOULOS ACKNOWLEDGED THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH IS OPPOSED BY MOST UNIONS IS A LIKELY TOPIC AS IS THE PRESIDENTELECT'S ECONOMIC PACKAGE AND FUELEFFICIENCY STANDARDS BUT IT APPEARED THE PRESIDENTELECT ACCORDING TO ONE AIDE IS PREPARED TO LISTEN TO THE GROUP RATHER THAN SEEK ANYTHING FROM THE EXECUTIVES MOREOVER AIDES SAID OTHER SENSITIVE ISSUES WILL PROBABLY BE DISCUSSED AS WELL SUCH AS WHETHER MR CLINTON WILL SUPPORT A CHANGE IN REGULATIONS THAT WOULD PREVENT THE JAPANESE FROM CLASSIFYING THEIR PASSENGER VANS AS CARS TO OBTAIN LOWER TARIFFS AND ALSO AS TRUCKS FOR SAFETY EMISSIONS AND OTHER STANDARDS LAST YEAR THE BIG THREE US AUTO MAKERS CHARGED THAT TOYOTA MOTOR CORP AND MAZDA MOTOR CORP ARE DUMPING MINIVANS IN THE US BELOW COST THE COMMERCE DEPARTMENT RULED THAT TOYOTA AND MAZDA WERE DUMPING HOWEVER THE US INTERNATIONAL TRADE COMMISSION LATER DECIDED THAT THE ACTIONS DIDN'T HURT THE US AUTO INDUSTRY AND ANTIDUMPING DUTIES WEREN'T IMPOSED CHRYSLER CORP CHAIRMAN ROBERT EATON SAID THE AUTO MAKERS ARE GOING TO CONTINUE THE DIALOGUE THEY ESTABLISHED WITH MR CLINTON LAST SUMMER WHEN THEY MET WITH HIM IN DETROIT BUT MR EATON SAID HE IS GOING TO THE MEETING TO OPEN DIALOGUE RATHER THAN PRESENT AN AGENDA HIGH ON FORD MOTOR CO'S LIST OF CONCERNS IS IMPROVING THE ECONOMY AND REDUCING HEALTHCARE COSTS SAID ALEXANDER TROTMAN PRESIDENT OF FORD'S WORLDWIDE AUTOMOTIVE OPERATIONS MR TROTMAN SAID FORD ALSO WANTS MR CLINTON TO PURSUE POLICIES TO STIMULATE CORPORATE INVESTMENT AND REDUCE THE COSTS OF MEETING FEDERAL VEHICLE REGULATIONS FOR POLLUTION SAFETY AND FUEL ECONOMY BETWEEN NOW AND 1996 FOR EXAMPLE THE COST OF NEW SAFETY AND POLLUTION LEGISLATION AT THE STATE AND FEDERAL LEVELS WILL ADD AN AVERAGE 1000 TO THE PRICE OF A NEW CAR MR TROTMAN SAID A GENERAL MOTORS CORP SPOKESMAN IN WASHINGTON AND A SPOKESMAN FOR THE UNITED AUTO WORKERS UNION DECLINED TO DISCUSS THEIR AGENDAS FOR THE MEETING TODAY MEANWHILE ON THE TRADE FRONT THE CLINTON TEAM IS CONFRONTED BY A FUNDAMENTAL POLICY CHOICE AS IT TRIES TO FILL THE POSITION OF CUSTOMS COMMISSIONER IN RECENT YEARS THE CUSTOMS SERVICE HAS EMPHASIZED ITS ROLE IN DRUG INTERDICTION BUT SOME CLINTON ADVISERS WANT IT TO FOCUS MORE ON CUSTOMS ENFORCEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT FOR INSTANCE CONTAINS PROVISIONS THAT WOULD REQUIRE VIGILANT BORDER INSPECTION TO MAKE SURE GOODS IMPORTED FROM MEXICO ARE ACTUALLY PRODUCED THERE AND MEET US ENVIRONMENTAL REQUIREMENTS GEORGE WEISE STAFF DIRECTOR OF THE HOUSE SUBCOMMITTEE ON TRADE IS BACKED BY THOSE WHO WANT THE CUSTOMS SERVICE TO FOCUS ON TRADE ROBERT MILLS FORMER SENIOR STAFFER ON THE SENATE APPROPRIATIONS PANEL OVERSEEING THE AGENCY IS BACKED BY OTHERS INCLUDING DEMOCRATIC SEN DENNIS DECONCINI OF ARIZONA WHO EMPHASIZE THE DRUG ENFORCEMENT ROLE JACQUELINE MITCHELL IN DETROIT CONTRIBUTED TO THIS ARTICLE 9301050169 930105 INTERNATIONAL HONG KONG AWARDS CONTRACTS HONG KONG THE HONG KONG GOVERNMENT AWARDED TWO CONTRACTS TOTALING 441 MILLION HONG KONG DOLLARS US569 MILLION TO TWO LOCAL COMPANIES FOR PROJECTS TO IMPROVE THE COLONY'S SEWAGETREATMENT FACILITIES THE CONTRACTS WERE AWARDED TO RYODEN ENGINEERING CO AND KWAN TANG CONSTRUCTION CO 9301050168 930105 BUSINESS BRIEF RJR COMPLETES SALE OF CEREAL BUSINESS SETS CHARGES FOR SOME JOB CUTS AND DEBT NEW YORK RJR NABISCO HOLDINGS CORP COMPLETED THE SALE FOR 450 MILLION OF ITS US AND CANADIAN COLD CEREAL BUSINESS TO THE KRAFT GENERAL FOODS SUBSIDIARY OF PHILIP MORRIS COS AND ANNOUNCED CHARGES FOR SOME JOB CUTS AND DEBT RETIREMENT THE FOOD AND TOBACCO PRODUCTS COMPANY SAID IT WOULD HAVE AFTERTAX PROCEEDS OF 350 MILLION ON THE SALE AND TAKE A 98 MILLION PRETAX GAIN IN THE 1992 FOURTH QUARTER AT THE SAME TIME RJR SAID IT WOULD TAKE A PRETAX CHARGE OF ABOUT 105 MILLION FOR RESTRUCTURING PROGRAMS AT ITS DOMESTIC FOOD AND TOBACCO SUBSIDIARIES INCLUDING A REDUCTION OF 200 JOBS THROUGH EMPLOYEE BUYOUTS AT THE NABISCO FOODS GROUP AND AN UNSPECIFIED NUMBER OF JOBS AT ITS RJ REYNOLDS TOBACCO OPERATIONS A SPOKESMAN SAID THE RESTRUCTURING WAS A RESPONSE TO THE COMPETITIVE PRESSURES IN THE FOOD AND TOBACCO BUSINESS AND THE WEAK ECONOMY THE COMBINED AFTERTAX EFFECT OF BOTH THE CEREAL BUSINESS SALE AND THE RESTRUCTURING WILL BE A CHARGE OF 36 MILLION OR THREE CENTS A SHARE RJR SAID THE GAIN ON THE CEREAL BUSINESS SALE HAS A DISPROPORTIONATELY HIGH TAX EFFECT BECAUSE OF A CHANGE IN ACCOUNTING FOR THE CEREAL ASSETS AT THE TIME OF RJR'S LEVERAGED BUYOUT IN 1989 RJR ALSO WILL TAKE A 126 MILLION OR NINECENTASHARE ONETIME CHARGE AFTER TAXES FOR RETIRING 830 MILLION OF HIGHYIELD DEBT THAT WAS OFFERED TO IT FOR REPURCHASE DURING THE QUARTER THE COMPANY HAS BEEN REPLACING EXPENSIVE DEBT TAKEN ON IN THE 1989 BUYOUT WITH LOWERCOST DEBT RJR'S 1991 FOURTHQUARTER EARNINGS WERE 161 MILLION OR 14 CENTS A SHARE AND 1991 FULLYEAR EARNINGS TOTALED 368 MILLION OR 22 CENTS A SHARE RJR AND KRAFT GENERAL FOODS HAD ANNOUNCED THEIR AGREEMENT FOR THE CEREALBUSINESS TRANSACTION LAST NOVEMBER UNDER THE AGREEMENT KRAFT CAN CONTINUE USING THE NABISCO BRAND NAME FOR UP TO FOUR YEARS ON THE CEREALS WHICH INCLUDE SHREDDED WHEAT EVENTUALLY KRAFT PLANS TO SELL THE CEREALS UNDER ITS POST BRAND A SPOKESMAN SAID 9301050167 930105 REDLAND PLC SELLS SEVEN UNITS FOR TOTAL OF 1515 MILLION SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH BRICK AND ROOFING TILES MANUFACTURER REDLAND PLC SAID IT SOLD SEVEN UNITS FOR AN AGGREGATE 100 MILLION 1515 MILLION AND MADE SOME PURCHASES AS WELL THE PROCEEDS OF THE DISPOSALS WILL BE USED TO IMPROVE GROUP LIQUIDITY AND TO EXPAND OUR EUROPEAN ROOF TILE OPERATIONS SAID ROBERT NAPIER REDLAND CHIEF EXECUTIVE THESE TRANSACTIONS SIGNIFICANTLY STRENGTHEN OUR POSITION IN OUR CORE ROOF TILE AND BRICK BUSINESSES IN NORTHWEST EUROPE THREE OF THE UNITS ARE CLAY TILE REFRACTORY AND CIVIL ENGINEERING PARTS OF STEETLEY PLC THE RIVAL COMPANY THAT REDLAND BOUGHT IN 1992 THESE SALES STEM FROM REDLAND'S PACT WITH THE UK GOVERNMENT MADE IN ORDER TO RECEIVE APPROVAL OF THE STEETLEY ACQUISITION REDLAND ALSO SOLD ITS COLUMBIA RIVER CARBONATES AND WACO TEXAS QUARRY BUSINESSES IN THE US AS WELL AS ITS 20 SHAREHOLDING IN LAFARGE PLATREUROPE A JOINT VENTURE FINALLY REDLAND SOLD ITS DUTCH BRICK INTERESTS TO A JOINT VENTURE OF WHICH IT IS PARTNERS WITH KORAMIC A PRIVATELY OWNED BELGIAN INDUSTRIAL GROUP THIS JOINT VENTURE WILL BE THE LARGEST MAKER OF FACING BRICKS ON THE EUROPEAN CONTINENT THE GROUP SAID REDLAND ALSO SAID IT HAS TAKEN CONTROL OF FRENCH ROOF TILES PRODUCER COVERLAND MOVING TO A 67 SHAREHOLDING FROM 43 FOR 12 MILLION REDLAND ALSO HAS THE OPTION TO PURCHASE THE REST OF PARTNER ST GOBAIN'S 33 STAKE FOR 24 MILLION AT ANY TIME BETWEEN APRIL 1995 AND JAN 1 1998 ST GOBAIN HAS THE RIGHT AT THAT POINT FOR TWO YEARS TO PUT ITS SHAREHOLDING TO REDLAND ON IDENTICAL TERMS REDLAND SAID THAT ITS GERMANYBASED BRAAS UNIT PURCHASED THE DAN TEGL CLAY TILE BUSINESS IN DENMARK 9301050166 930105 REVIEW & OUTLOOK EDITORIAL HOUSE RULES HOUSE BROKEN TODAY THE 103RD CONGRESS WILL BE SWORN IN AND DEMOCRATS FOR THE FIRST TIME IN 12 YEARS WILL CONTROL BOTH THE PRESIDENCY AND CONGRESS WE'RE COMING OUT OF A 12 YEAR LEGISLATIVE RECESSION CAUSED BY REPUBLICAN PRESIDENTS SAYS ONE DEMOCRATIC STAFFER THERE'S A LOT OF PENTUP DEMAND FOR NEW LAWS SOUNDS TO US LIKE A COMING GOLDEN AGE FOR LOBBYISTS AND AFFECTED INTERESTS INDEED ALREADY ABSENT FROM THE MINDS OF MANY MEMBERS IS MUCH OF LAST YEAR'S CONCERN ABOUT AN ETHICALLY ADRIFT VACUOUS AND EVEN CORRUPT CONGRESS REMEMBER ALL THE HOOPLA OVER THAT BUT THE ELECTION'S OVER THE VOTERS ARE ON THE SHELF FOR AWHILE AND IT LOOKS AS IF THE LEADERSHIP BELIEVES THERE'S NOTHING ABOUT CONGRESS'S IMAGE THAT A NATIONAL HEALTH CARE BILL AND MAKEBELIEVE CAMPAIGN FINANCE REFORM CAN'T CURE THERE ARE STILL SOME DISSENTING REFORM VOICES AMONG THE 63 FRESHMAN DEMOCRATS WHO REPRESENT A QUARTER OF ALL HOUSE DEMOCRATS A FEW STILL PROCLAIM SUPPORT FOR TERM LIMITS AND THE LINEITEM VETO THEMES THAT HELPED WIN THEM ELECTION BUT MOST OF THE LARGEST HOUSE DEMOCRATIC CLASS SINCE 1948 HAS ALREADY BEEN HOUSEBROKEN PAID OFF WITH GOOD COMMITTEE ASSIGNMENTS THAT CAME WITH A FAMOUS ADMONITION THE ONLY WAY TO GET ALONG IS TO GO ALONG EVIDENCE FOR THIS WILL COME AS EARLY AS TODAY WHEN THE NEW HOUSE VOTES ON A PACKAGE OF RULES THAT WILL GOVERN IT FOR THE NEXT TWO YEARS THE RULES WERE PRESENTED AS A FAIT ACCOMPLI TO MEMBERS LAST MONTH AND SOME FRESHMEN DEMOCRATS OPENLY GRUMBLED TO US ABOUT THE LACK OF CONSULTATION BUT UNLESS THERE'S A MAJOR SURPRISE THE RULES WILL BE APPROVED ON A PARTYLINE VOTE WITH DEMOCRATS VOTING FOR EVEN MORE CENTRALIZED CONTROL OVER LEGISLATION AND REPUBLICANS VOTING NO AMONG THE NEW HOUSE RULES ARE PROPOSALS TO ALLOW THE SPEAKER TO DELAY PRIVILEGED MOTIONS AFFECTING THE INTEGRITY OF THE HOUSE SUCH MOTIONS PLAYED A KEY ROLE IN FORCING THE DISCLOSURE OF HOUSE BANK ABUSERS LAST YEAR PERHAPS THE REASON THEY ARE NOW BEING RESTRICTED THE MOST BRAZEN OF THE NEW RULES WOULD ALLOW FIVE DEMOCRATIC DELEGATES FROM THE DISTRICT OF COLUMBIA AND NONVOTING TERRITORIES SUCH AS THE VIRGIN ISLANDS AND GUAM THE RIGHT TO VOTE WHEN THE HOUSE FUNCTIONS AS A COMMITTEE OF THE WHOLE THE TIME WHEN MOST FLOOR BUSINESS IS CONDUCTED THE CONSTITUTION SPECIFIES THAT THE HOUSE SHALL BE COMPOSED OF MEMBERS OF THE SEVERAL STATES BUT HOUSE LEADERS AREN'T ABOUT TO LET THE NATION'S FOUNDING DOCUMENT STAND IN THE WAY OF THEIR POWER GRAB ROLL CALL THE NONPARTISAN CAPITOL HILL NEWSPAPER CALLS THIS PLOY OUTRAGEOUS THE DELEGATES REPRESENTING THE 47000 PEOPLE OF AMERICAN SAMOA AND THE OTHER TERRITORIES WILL VOTE ON ALMOST ALL MATTERS BEFORE THE HOUSE EVEN THOUGH THEIR CONSTITUENTS PAY NO INCOME TAXES THERE IS APPARENTLY NOTHING TO PREVENT SPEAKER FOLEY FROM PROPOSING A RULE EXPANDING THE HOUSE IN THIS WAY DURING THE 1970 DEBATE ON THE ORIGINAL ROLE OF PUERTO RICO'S DELEGATE TOM FOLEY HIMSELF ACKNOWLEDGED THAT A CONSTITUTIONAL AMENDMENT WOULD BE REQUIRED TO GIVE DELEGATES A VOTE ON THE HOUSE FLOOR TIME AND POWER HAVE APPARENTLY ALTERED HIS VIEW AND THAT OF OTHER DEMOCRATS THE ENTIRE FRESHMAN DEMOCRATIC CLASS WILL LIKELY GO ALONG WITH THIS UNCONSTITUTIONAL OUTRAGE IT'S ALL PART OF THE HOUSE RULES THE HOUSE LEADERSHIP HAS SQUELCHED DISSENT ON TERM LIMITS SPEAKER FOLEY SAYS THE TERM LIMITS OVERWHELMINGLY APPROVED BY 14 STATES IN NOVEMBER WILL BE TIED UP IN THE COURTS AND HE SEES NO NEED FOR CONGRESS TO EVEN DEBATE THE IDEA SOME SENIOR DEMOCRATS SUCH AS DAVE MCCURDY OF OKLAHOMA AND DAN GLICKMAN OF KANSAS WANT TO AT LEAST IMPOSE A SIXYEAR TERM LIMIT ON POWERFUL COMMITTEE CHAIRMEN UNDER PRESSURE THEY HAVE QUIETLY SHELVED THEIR IDEA REPUBLICAN MEMBERS PLAN TO FORCE THE ISSUE AND SECURE THE FIRST VOTE ON TERM LIMITS EVER ALLOWED IN THE HOUSE THEIR FRESHMEN MEMBERS OVERRODE THE OBJECTIONS OF PARTY LEADERS AND WON APPROVAL OF A SIXYEAR LIMIT ON ALL RANKING GOP COMMITTEE MEMBERS ILLINOIS REP JOHN PORTER PLANS TO TAKE THE RULES OFFERED BY THE DEMOCRATIC LEADERSHIP ADD A SIMPLE CALL FOR TERM LIMITS ON CHAIRMEN TO THEM AND OFFER THE PACKAGE AS AN ALTERNATIVE SET OF RULES THAT WILL FORCE EVERY MEMBER OF CONGRESS TO GO ON RECORD ON AT LEAST A MODEST FORM OF CONGRESSIONAL TERM LIMITS WHILE THE HOUSE RULES STILL ALLOW THE SPEAKER TO BLOCK A VOTE ON A TERMLIMIT CONSTITUTIONAL AMENDMENT VOTERS WILL HAVE SOME IDEA OF HOW THEIR MEMBER STANDS ON THE MOST POPULAR OF ALL PROPOSED CONGRESSIONAL REFORMS MANY AMERICANS OBVIOUSLY VOTED FOR FRESH CONGRESSIONAL FACES IN NOVEMBER HOPING THE PLACE WOULD CHANGE IT HAS BUT THE NEW HOUSE RULES SUGGEST THAT SO FAR THE 103RD CONGRESS ISN'T CHANGING FOR THE BETTER 9301050165 930105 SWEDISH CAR REGISTRATIONS DIVE STOCKHOLM SWEDISH NEWCAR REGISTRATIONS CONTINUED THEIR DECLINE DROPPING 23 IN DECEMBER TO 11701 UNITS FROM 15183 UNITS A YEAR EARLIER ACCORDING TO PRELIMINARY FIGURES RELEASED BY THE SWEDISH NATIONAL STATISTICS AGENCY THE DECLINE FOLLOWS A 41 YEARONYEAR PLUNGE IN NOVEMBER IN DECEMBER NEW TRUCK REGISTRATIONS FELL 24 TO 1127 UNITS FROM 1477 UNITS A YEAR EARLIER THE AGENCY SAID 9301050164 930105 SOCIETY CORP ACQUISITION CLEVELAND SOCIETY CORP A BANKING CONCERN SAID IT EXPECTS TO COMPLETE ITS 141 MILLION ACQUISITION OF FIRST FEDERAL SAVINGS & LOAN ASSOCIATION FORT MYERS FLA ON JAN 22 AFTER WINNING APPROVAL FROM THE OFFICE OF THRIFT SUPERVISION ON DEC 23 9301050162 930105 FIRST FINANCIAL ACQUISITION HAMILTON OHIO FIRST FINANCIAL BANCORP SAID IT COMPLETED ITS ACQUISITION OF JENNINGS UNION BANKCORP NORTH VERNON IND IN A STOCK SWAP VALUED AT 114 MILLION 9301050161 930105 MORTGAGE & REALTY TRUST DEBT ELKINS PARK PA MORTGAGE & REALTY TRUST SAID IT MADE A 10 MILLION PRINCIPAL PAYMENT TO CREDITORS ON DEC 31 REDUCING DEBT OUTSTANDING TO 290 MILLION THE PAYMENT REDUCED THE SELFADMINISTERED REAL ESTATE INVESTMENT TRUST'S DEBT LEVEL TO THE MAXIMUM ALLOWED UNDER AN AMENDED PLAN OF REORGANIZATION AT DEC 31 CREDITORS LAST JULY AGREED TO AN OUTOFCOURT RESTRUCTURING PLAN FOR MORTGAGE & REALTY TRUST'S DEBT WHICH AT THAT TIME STOOD AT 329 MILLION MORTGAGE & REALTY TRUST HAD ABOUT 415 MILLION IN INVESTED ASSETS AS OF NOV 15 1992 9301050160 930104 TRACKING THE ECONOMY BY ALAN YONAN JR BUSINESSES FINALLY MAY BE OVERCOMING THEIR RELUCTANCE TO INCREASE HIRING FOR MONTHS UNCERTAINTY ABOUT THE ECONOMY LED EMPLOYERS TO BE VERY CAUTIOUS ABOUT HIRING NEW WORKERS BUT A 105000 JUMP IN NATION'S NONFARM PAYROLL JOBS IN NOVEMBER WAS TRIPLE THE AVERAGE OF THE PREVIOUS 10 MONTHS AND MANY ANALYSTS BELIEVE THAT TREND CONTINUED IN DECEMBER THE SKEPTICISM OF EXECUTIVES IS UNDERSTANDABLE CONSIDERING THE COLLAPSE OF TWO PREVIOUS BUDDING RECOVERIES ONE IN 1991 AND THE OTHER IN EARLY 1992 SAID ROBERT DEDERICK CHIEF ECONOMIST AT NORTHERN TRUST IN CHICAGO WE'RE FINALLY GETTING A LITTLE RESPONSE TO THE GENERAL PICKUP IN ECONOMIC ACTIVITY SAID MR DEDERICK WHO EXPECTS TO SEE A 100000 150000 INCREASE IN DECEMBER NONFARM PAYROLL JOBS HE ESTIMATED THAT THE UNEMPLOYMENT RATE REMAINED UNCHANGED AT 72 SIX MONTHS OF IMPROVING CONSUMER SPENDING SHOULD SEND A CLEAR SIGNAL TO BUSINESSES THAT THE ECONOMIC EXPANSION IS SUSTAINABLE HE SAID THE MESSAGE SHOULD BE GETTING THROUGH THAT THIS IS NOT LIKE THE OTHER TWO OCCASSIONS MR DEDERICK SAID THIS TIME THE RESPONSE FROM BUSINESSES SHOULD BE MORE AGGRESSIVE BUT MR DEDERICK CAUTIONED THAT EMPLOYMENT DATA WILL HAVE TO SHOW IMPROVEMENT FOR AT LEAST TWO MORE MONTHS BEFORE ANY FIRM CONCLUSIONS CAN BE REACHED IF IT CONTINUES IN JANUARY AND FEBRUARY WE CAN SAY THAT THIS TIME IS NOT A FALSE ALARM HE SAID NEWCAR SALES FOR LATE DECEMBER ARE DUE OUT TOMORROW IN YESTERDAY'S EDITION THE TRACKING THE ECONOMY COLUMN ERRONEOUSLY SAID THE NUMBERS WOULD BE OUT YESTERDAY 9301050159 930105 BUSINESS BRIEF PENN TRAFFIC CO FIRM SCRIVNER AGREE TO BUY ASSETS OF PETER J SCHMITT PENN TRAFFIC CO AND SCRIVNER INC AGREED TO BUY SUBSTANTIALLY ALL THE ASSETS OF PETER J SCHMITT CO A BUFFALO NY SUPERMARKET CONCERN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION PENN TRAFFIC JOHNSTOWN PA AGREED TO ACQUIRE 27 SUPERMARKETS FROM SCHMITT FOR 38 MILLION SCRIVNER BASED IN OKLAHOMA CITY SAID IT WILL ACQUIRE 33 SUPERMARKETS FROM SCHMITT SCRIVNER DECLINED TO DISCLOSE TERMS BUT SCHMITT SAID THE VALUE OF BOTH THE PENN TRAFFIC AND SCRIVNER TRANSACTIONS IS BETWEEN 72 MILLION AND 77 MILLION SCHMITT WHICH FILED FOR CHAPTER 11 PROTECTION IN MAY 1992 IS DIVESTING ALL OPERATING ASSETS THE ACQUISITIONS WERE APPROVED BY US BANKRUPTCY COURT IN DELAWARE AND ARE EXPECTED TO CLOSE LATER THIS WEEK PENN TRAFFIC SAID IT WILL FUND ITS PURCHASE WITH A PRIVATE PLACEMENT OF 35 MILLION OF SENIOR INCREASINGRATE NOTES DUE IN 1997 9301050158 930105 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JAN 518 CINCINNATI ART MUSEUM'S 100000PIECE PERMANENT COLLECTION CAN BE SEEN IN A SPRUCEDUP SETTING COME JAN 15 WHEN THE INSTITUTION REOPENS AFTER UNDERGOING A TWOYEAR 105 MILLION RENOVATION THE COLLECTION WHICH INCLUDES AMERICAN AND EUROPEAN DRAWINGS AND PAINTINGS DECORATIVE ARTS ANCIENT SCULPTURE PHOTOGRAPHS AND ASIAN ART WILL BE ON VIEW THROUGHOUT THE MUSEUM INCLUDING IN THE RESTORED ORIGINAL 1886 ROMANESQUE BUILDING BY LOCAL ARCHITECT JAMES MCLAUGHLIN HIGHLIGHTS OF THE RENOVATION BY GLASER ASSOCIATES OF CINCINNATI AND GEORGE SEXTON & ASSOCIATES OF WASHINGTON DC INCLUDE A REDONE GREAT HALL WITH THE ORIGINAL ENTRANCE COLUMNS AND STONE ARCH UNCOVERED NEW GALLERIES FOR CONTEMPORARY ART AN ADDITIONAL 2000 SQUARE FEET OF TEMPORARY EXHIBITION SPACE NEW LIGHTING AND CLIMATE CONTROL ABOUT 40 ROMAN MAPS GUIDEBOOKS AND PRINTED VIEWS OF THE CITY DATING FROM ABOUT 1450 TO 1800 EXAMINING CHANGING POPULAR PERCEPTIONS OF THE ITALIAN CAPITAL GETTY CENTER FOR THE HISTORY OF ART AND THE HUMANITIES 401 WILSHIRE BOULEVARD JAN 9APRIL 24 310 4589811 EXT 4177 A SMALL SELECTION OF OILS ON CANVAS WORKS ON PAPER AND SCULPTURES BY CHILEANBORN SURREALIST ROBERTO MATTA ECHAURREN ARTS CLUB OF CHICAGO 109 EAST ONTARIO ST JUST WEST OF MICHIGAN AVENUE JAN 11MARCH 6 312 7873997 THIS SOLO ARTIST BRINGS THREE WORLD PREMIERES TO THE JOYCE THEATER EACH WITH A SCULPTURAL ENVIRONMENT BY A MAJOR VISUAL ARTIST IN CHANNEL A LANGUID WORK INSPIRED BY SUMERIAN/BABYLONIAN SCULPTURE MS FENLEY DANCES WITH PROPS BY THE SCULPTOR RICHARD SERRA NULLARBOR IS A FASTPACED WORK CHOREOGRAPHED TO A COMMISSIONED SCORE BY AUSTRALIAN COMPOSER ROBERT LLOYD AND FEATURING THE SCULPTURE OF RICHARD LONG IN SIGHTINGS MS FENLEY EXPLORES THE CONTINUALLY SHIFTING NATURE OF TIME WITH MUSIC BY PAULINE OLIVEROS AND SCULPTURE BY TASUO MIYAJIMA THE OPENINGNIGHT PROGRAM ALSO INCLUDES PROVENANCE UNKNOWN A SOLO CREATED BY MS FENLEY IN 1989 TO A PIANO SCORE BY PHILIP GLASS WHO WILL PLAY THAT EVENING JOYCE THEATER 175 EIGHTH AVENUE AT 19TH STREET JAN 1217 THE COMPANY PRESENTS THREE SHORT WORKS BY THE SPANISH COMPOSER MANUEL DE FALLA EL RETABLO DE MAESE PEDRO MASTER PETER'S PUPPET SHOW BASED ON AN EPISODE FROM CERVANTES IN WHICH DON QUIXOTE AND SANCHO PANZA WATCH A PUPPET SHOW IN THE COURTYARD OF AN INN EL AMOR BRUJO BEWITCHED LOVE ABOUT A GYPSY GIRL NAMED CANDELAS AND LA VIDA BREVE THE BRIEF LIFE ABOUT ANOTHER GYPSY GIRL SALUD WHO IS IN LOVE WITH A WEALTHY YOUNG MAN THE ALLHISPANIC CASTS ARE LED BY JUSTINO DIAZ AS DON QUIXOTE IGNACIO CLAPES AS MASTER PETER SUZANNA GUZMAN AS CANDELAS AND GRACIELA VON GYLDENFELDT AS SALUD BRUCE FERDEN CONDUCTS THE TRIO AND CHOREOGRAPHY FOR EL AMOR BRUJO IS BY FLAMENCO ARTIST MARIA BENITEZ WHO APPEARS WITH HER COMPANY OF SPANISH DANCERS MUSIC HALL AT FAIR PARK 909 FIRST AVE JAN 8 10 13 AND 16 THIS NEW OTTO SCHENK PRODUCTION OF RICHARD WAGNER'S DIE MEISTERSINGER VON NURNBERG STARS KARITA MATTILA FRANCISCO ARAIZA LARS MAGNUSSON DONALD MCINTYRE ON JAN 14 18 AND 23 AND BERND WEIKL ON JAN 26 30 FEB 2 AND 6 HERMANN PREY AND JANHENDRIK ROOTERING JAMES LEVINE CONDUCTS METROPOLITAN OPERA HOUSE LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS JAN 14 18 23 26 30 FEB 2 6 AND 10 THE LAST THREE WITH ALTERNATE CASTS 212 3626000 9301050157 930105 LOAN FOR ELJER'S UK UNIT DALLAS ELJER INDUSTRIES INC SAID A EUROPEAN LENDER AGREED TO PROVIDE A 174 MILLION LOAN PACKAGE TO ITS UKBASED SELKIRK UNIT THE FINANCING INCLUDES A SEVENYEAR TERM LOAN AND A FIVEYEAR REVOLVING CREDIT LINE ELJER SAID THE BANK IS PROVIDING 121 MILLION IN CASH THAT WAS PAID AS A DIVIDEND BY SELKIRK TO ELJER 13 MILLION THAT WILL BE USED TO PAY UK CORPORATE TAXES AS A RESULT OF THE DIVIDEND AND AN ADDITIONAL 4 MILLION THAT WILL BECOME AVAILABLE IN MID1993 IF THE UNIT MEETS FINANCIAL CRITERIA ELJER MAKES PLUMBING PRODUCTS ITS SELKIRK UNIT MAKES CHIMNEYS AND VENTING SYSTEMS 9301050156 930105 MARKETING & MEDIA NBC SHAKES UP SEASON'S SCHEDULE FOR PRIME TIME BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STRUGGLING NBC NETWORK ANNOUNCED A WHOLESALE SHAKEUP OF ITS PRIMETIME SCHEDULE CANCELING THREE SHOWS ADDING THREE OTHERS AND MOVING SIX CURRENT SERIES TO NEW TIME SLOTS THE THIRDPLACE NETWORK WHICH HAS FALLEN 13 IN ITS HOUSEHOLD RATINGS THIS SEASON FROM A YEAR AGO ALSO SAID IT WOULD MAKE THE UNUSUAL MOVE OF AIRING ITS TOPRATED SHOW THE AGING SITCOM CHEERS TWICE A NIGHT ON THURSDAYS DURING THE FEBRUARY SWEEPS RATINGS PERIOD THE CHEERS EPISODES WILL AIR AT 8 AND 9 PM POSSIBLY WITH ORIGINAL SEGMENTS IN BOTH SLOTS NBC A UNIT OF GENERAL ELECTRIC CO IS HOPING TO TRANSFER SOME OF THE CHEERS MAGIC TO OTHER SHOWS BEFORE THE CHEERS BAR CLOSES FOR GOOD AT THE END OF THE CURRENT SEASON FOURTEEN WEEKS INTO THE TV SEASON NBC IS DRAWING JUST 11 OF THE NATION'S 931 MILLION TELEVISION HOMES DOWN FROM 126 A YEAR AGO ITS CROP OF NEW SHOWS HAS FAILED TO PRODUCE A BREAKOUT HIT AND MOST OF ITS POPULAR RETURNING SERIES ARE OFF SHARPLY FROM A YEAR AGO THE SIX SHOWS THAT NBC WILL SHIFT TO NEW SPOTS ON THE SCHEDULE INCLUDE MOSTLY PROGRAMS FROM ITS LOWRATED FRIDAY AND SATURDAY SCHEDULES WHEN YOU'VE GOT A PROBLEM SOMETIMES YOU HAVE GOT TO DO MAJOR THINGS SAID JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING NBC'S PROBLEM THIS YEAR WAS THAT THEY STARTED OUT WITH WHOLESALE CHANGES YOU CANNOT CHANGE EVERYTHING AT ONE TIME MAKING SO MANY CHANGES AT ONCE COURTS NEW RISK BUT MR MANDEL DECLINED TO PASS JUDGMENT ON THE CURRENT MOVES UNTIL HE SEES A RATINGS ANALYSIS THE CANCELED SHOWS ARE THE CRITICALLY ACCLAIMED ONEHOUR DRAMA I'LL FLY AWAY WHICH HAS A FINAL AIRING FEB 5 AND THE SITCOM HERE AND NOW STARRING COSBY SON MALCOLMJAMAL WARNER WHICH HAS A LAST PLAY ON JAN 30 THE TWO SHOWS ARE TIED FOR 90TH AMONG THE SEASON'S 113 SERIES BUT NBC SAID THEY MAY RETURN TO NEXT SEASON'S SCHEDULE ADDITIONALLY NORMAN LEAR'S POWERS THAT BE ENDS JAN 30 AND WON'T RETURN TWO NEW SHOWS ARE HOMICIDE LIFE ON THE STREET WHICH WILL BE LAUNCHED BEHIND SUPER BOWL XXVII ON JAN 31 AND THEN MOVES TO WEDNESDAYS AT 9 AND ALMOST HOME A REMAKE OF LAST SEASON'S THE TORKELSONS IN ADDITION THE SITCOM RHYTHM AND BLUES WHICH WENT ON HIATUS EARLY IN THE SEASON WILL RETURN ON FRIDAYS 9301050155 930105 WHO'S NEWS CINCINNATI MILACRON INC CINCINNATI MILACRON INC CINCINNATI RONALD D BROWN 39YEAROLD TREASURER OF THIS MACHINERY MAKER WAS NAMED CHIEF FINANCIAL OFFICER HE SUCCEEDS WILLIAM E BUCHHOLZ 50 WHO BECAME CHIEF FINANCIAL OFFICER OF NALCO CHEMICAL CO 9301050154 930105 BURNHAM PACIFIC BUYS FACILITY SAN DIEGO BURNHAM PACIFIC PROPERTIES INC A REAL ESTATE INVESTMENT TRUST SAID IT COMPLETED THE 224 MILLION ACQUISITION OF A 338000 SQUAREFOOT INDUSTRIAL FACILITY IN POWAY CALIF THE SELLER WAS MISSIONDAI A CALIFORNIA LIMITED PARTNERSHIP WHOSE OWNERS INCLUDE A UNIT OF SCECORP WHICH IS A UTILITIES HOLDING COMPANY BASED IN ROSEMEAD CALIF 9301050153 930105 BOMBARDIER GETS BELGIAN JOB MONTREAL BOMBARDIER INC SAID ITS BOMBARDIER EURORAIL UNIT RECEIVED AN ORDER FOR RAIL CARS VALUED AT NEARLY 214 BILLION BELGIAN FRANCS US644 MILLION FROM BELGIUM'S NATIONAL RAILWAY COMPANY SOCIETE NATIONALE DES CHEMINS DE FER BELGES THE ORDER INCLUDES 120 MOTORIZED THREECAR UNITS TO BE DELIVERED FROM 1995 THROUGH 2000 AND 163 INDIVIDUAL RAIL CARS TO BE DELIVERED FROM 1995 THROUGH 1997 BOMBARDIER IS A TRANSPORTATIONEQUIPMENT MAKER 9301050152 930105 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE LEADERS OF FIVE FORMER SOVIET REPUBLICS IN CENTRAL ASIA AGREED TO TRY TO ESTABLISH A COMMON MARKET AND SAID THEY WANTED TO CONTINUE USING THE RUSSIAN RUBLE AS THEIR JOINT CURRENCY THE COMMON MARKET WOULD APPLY TO POLICIES ON TAXATION CUSTOMS CONTROLS PRICES INVESTMENTS AND EXPORTS IN KAZAKHSTAN KYRGYZSTAN TAJIKISTAN TURKMENISTAN AND UZBEKISTAN AT THE LEADERS' SUMMIT IN THE UZBEK CAPITAL OF TASHKENT PRESIDENT NURSULTAN NAZARBAYEV OF KAZAKHSTAN SAID HE FAVORED COOPERATION WITH THE 10 OTHER FORMER SOVIET REPUBLICS ESPECIALLY RUSSIA THE INTERFAX NEWS AGENCY REPORTED HE ALSO EMPHASIZED THE NEED FOR A BANKING UNION THE FIVE LEADERS ALSO DECIDED TO CREATE A CENTRAL ASIAN NEWSPAPER AND A COMMON TELEVISION AND RADIO NETWORK WITH PROGRAMS TO BE BROADCAST FROM TASHKENT BANKS IN ARGENTINA FOR THE FIRST TIME MAY OFFER CHECKING ACCOUNTS DENOMINATED IN US DOLLARS WHICH THE INSTITUTIONS ALSO MAY USE ALONG WITH PESOS TO MEET CASHRESERVE REQUIREMENTS THE MOVE IS INTENDED TO REMOVE DISTORTIONS IN THE ECONOMY SUCH AS DIFFERENT PESO AND DOLLAR INTEREST RATES FOR INTERBANK LOANS AND TO REDUCE SPECULATION AGAINST THE PESO BY TYING IT EVEN MORE CLOSELY TO THE US CURRENCY SINCE APRIL 1991 THE DOLLAR AND THE PESO HAVE TRADED AT 1 TO 1 RENTS AND OTHER CONTRACTS HAVE BEEN ALLOWED IN DOLLARS AND BIG PURCHASES RANGING FROM CARS TO REFRIGERATORS ARE GENERALLY PAYABLE IN US CASH DOLLAR SAVINGS ACCOUNTS WERE INTRODUCED LAST YEAR IN A SURVEY OF 29 CHAIRMEN OF BRITAIN'S LARGEST PUBLICLY TRADED COMPANIES 17 FAVOR SACKING CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT AND SEVEN BACK HIM IN THE POST DESPITE HIS DISPUTED PERFORMANCE IN EUROPE'S CURRENCY TURMOIL THE BUSINESS LEADERS IN THE BBC RADIO POLL WERE EVENLY DIVIDED AT 14 EACH ON WHETHER BRITAIN HAS A COHERENT STRATEGY FOR ECONOMIC RECOVERY YET 12 EXPECT THE ECONOMY WILL MEET THE GOVERNMENT'S PREDICTION OF 1 GROWTH THIS YEAR AND SEVEN ANTICIPATE A HIGHER RATE WHILE 10 SEE IT FALLING SHORT REGARDING INTEREST RATES 18 CHAIRMEN BELIEVE A REDUCTION IS INAPPROPRIATE FOR NOW A FORMER INDIAN GOVERNMENT PLANNING OFFICIAL WAS CHARGED IN A MULTIMILLIONDOLLAR FINANCIAL SCANDAL V KRISHNAMURTHY WAS ACCUSED OF TAKING A BRIBE OF 33 MILLION RUPEES 115070 FROM A STOCKBROKER HARSHAD MEHTA IDENTIFIED AS THE PRINCIPAL FIGURE IN THE SCANDAL TO PROMOTE HIS BUSINESS MR KRISHNAMURTHY ALSO WAS CHARGED WITH USING HIS POST TO GET A BANK LOAN FOR A COMPANY RUN BY HIS SONS INVESTIGATORS SAY SEVERAL STOCKBROKERS INCLUDING MR MEHTA ILLEGALLY DIVERTED 11 BILLION FROM BANKS ALLEGEDLY WITH HELP FROM BANK AND GOVERNMENT OFFICIALS TO BUY STOCKS AND ARTIFICIALLY BOOST THE MARKET SOUTH KOREAN AUTO MAKERS' PRODUCTION THIS YEAR WILL JUMP 17 TO 2020000 VEHICLES THE TRADE AND INDUSTRY MINISTRY PREDICTED THE AGENCY FORECAST THE SAME PERCENTAGE INCREASES FOR DOMESTIC SALES TO 1480000 VEHICLES AND FOR EXPORTS TO 520000 CITING EFFORTS TO DIVERSIFY EXPORT MARKETS WHERE ECONOMIES ARE EXPECTED TO RECOVER MEANWHILE THE VALUE OF THE AUTO MAKERS' PRODUCTION OVERSEAS LAST YEAR FELL 35 TO 200 MILLION OVERALL THOUGH KOREAN FIRMS LED BY TEXTILE MAKERS PRODUCED 301 BILLION OF GOODS ABROAD IN 1992 UP 33 FROM 1991 IN CAMPAIGNS TO OFFSET POOR SALES AND HIGH WAGES DOMESTICALLY THOUGH JAPANESE CHILDREN ARE GROWING MORE QUICKLY AND TALLER THAN THOSE IN THEIR PARENTS' GENERATION THEIR GENERAL HEALTH HAS DETERIORATED SIGNIFICANTLY ESPECIALLY THEIR EYESIGHT THE HEALTH AND WELFARE MINISTRY SAID HEALTH CHECKS LAST YEAR OF ABOUT 700000 CHILDREN FOUND RECORD INCREASES SINCE THE FIRST SURVEY IN 1900 IN CHEST SIZE AND WEIGHT AND IN HEIGHT MAINLY BECAUSE OF LONGER LEGS BUT 20 OF STUDENTS IN JUNIOR HIGH SCHOOLS AND A RECORD 33 OF THOSE IN SENIOR HIGHS HAD TO WEAR EYEGLASSES CASES OF CHRONIC DISEASE SUCH AS ASTHMA AND DIABETES ALSO INCREASED EUROPEAN COMMUNITY MEMBERS WILL BE ASKED TO EXPAND THE EC COMMISSION'S POWERS TO SCRUTINIZE NATIONAL STANDARDS AND RULES THE MOVE IS AIMED AT STEPPING UP EFFORTS TO BLOCK ANY HIDDEN PROTECTIONIST BARRIERS IN THE EC'S NEW SINGLE MARKET UNDER THE CHANGES GOVERNMENTS WOULD HAVE TO SEEK COMMISSION CLEARANCE FOR PROGRAMS SUCH AS USE OF TAXATION TO ENCOURAGE USE OF RECYCLABLE MATERIALS THE COMMISSION'S PROPOSAL WAS A RESPONSE TO ISSUES RAISED SINCE GERMANY THE NETHERLANDS AND LUXEMBOURG INTRODUCED TAX INCENTIVES FOR ENVIRONMENTALLY FRIENDLY VEHICLES IN 1991 AND FRANCE SET RULES ON CROSSBORDER TREATMENT OF WASTE LAST YEAR THESE RULES THE COMMISSION SAID COULD BE USED TO BLOCK TRADE THE 12 MEMBER GOVERNMENTS MUST BACK THE COMMISSION PROPOSAL FOR IT TO BECOME LAW FOR THE TRADE BLOC THE US CONSULATE WAS UPGRADED TO AN EMBASSY IN BRATISLAVA THE CAPITAL OF SLOVAKIA WHICH BECAME AN INDEPENDENT STATE FRIDAY IN THE DISSOLUTION OF CZECHOSLOVAKIA CHILE TIGHTENED INDUSTRIAL POLLUTION RULES IN SANTIAGO THE CAPITAL CITY OF 45 MILLION PEOPLE WHERE AIR CONTAMINATION RANKS AMONG THE WORLD'S WORST AFTER A STUDY FOUND 383 FACTORIES VIOLATED POLLUTION LIMITS INDUSTRIES WERE GIVEN TWO MONTHS TO CORRECT PROBLEMS OR FACE CLOSURE 9301050151 930105 ABREAST OF THE MARKET STOCKS END MIXED AFTER A RALLY SOFTNESS IN SOME OTC ISSUES CITED BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS STARTED THE YEAR ON A TENTATIVE NOTE AS PRICES POSTED A MIXED FINISH IN TEMPERED TRADING THE DOW JONES INDUSTRIAL AVERAGE ADDED 811 POINTS OR 025 TO 330922 THE STANDARD & POOR'S 500STOCK INDEX WAS OFF 033 POINT OR 008 TO 43538 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 033 POINT OR 014 TO 23988 THE MARKET OPENED WITH BARGAINHUNTERS PRODDING STOCKS HIGHER BUT THE BUYING MOMENTUM WAVERED AT MIDMORNING AND SEVERAL INDEXES SLIPPED TO A DEFICIT DESPITE NEWS THAT CONSTRUCTION SPENDING IN NOVEMBER ROSE 21 TO ITS HIGHEST LEVEL IN MORE THAN TWO YEARS TRADERS BLAMED THE SELLING PRESSURE ON WEAKNESS IN SOME CLOSELY WATCHED OVERTHECOUNTER ISSUES MANY OF WHICH WERE PLAGUED BY RELENTLESS PROFITTAKING YESTERDAY THE NASDAQ COMPOSITE INDEX PLUMMETED 515 POINTS OR 076 TO 67180 IT HAD HIT A NEW HIGH IN THE FINAL SESSION OF 1992 EQUITIES VACILLATED IN A NARROW TRADING RANGE MOST OF THE SESSION UNTIL ANOTHER LATE BUYINGPUSH LIFTED SOME OF THE MARKET'S KEY INDICATORS MARKET WATCHERS REMAINED UNIMPRESSED THOUGH THIS MARKET WAS RATHER A BORE SAID JAY SEAGLE DIRECTOR OF TECHNICAL RESEARCH AT GRUNTAL & CO I'M SURPRISED WE DID SO LITTLE THIS BEING THE NEW YEAR THERE WAS REALLY NO EXCUSE EVERYONE'S BACK FROM VACATION BUT DONALDSON LUFKIN & JENRETTE'S CHIEF INVESTMENT OFFICER ERIC T MILLER SAID INVESTORS TOOK THEIR TIME DECIDING WHAT TO DO DURING THE FIRST SESSION OF 1993 MORE OFTEN THAN NOT HOWEVER THEY DID NOTHING A LOT OF MANAGERS WERE GETTING REORGANIZED HE SAID STILL THE PACE PICKED UP IN POSTHOLIDAY TRADING NEW YORK STOCK EXCHANGE VOLUME TOTALED 199680000 SHARES UP FROM 165910000 IN THE PREVIOUS SESSION BIG BOARD DECLINERS ECLIPSED ADVANCERS 1046 TO 888 WITH 505 ISSUES UNCHANGED OBSERVERS AREN'T SURE HOW TO INTERPRET YESTERDAY'S MARKET PERFORMANCE HISTORICALLY THE FIRST WEEK IN JANUARY SETS A PRECEDENT FOR THE MONTH AS THE MONTH GOES SOME BELIEVE SO GOES THE YEAR MR SEAGLE OF GRUNTAL SAID HE THINKS A JANUARY RALLY IS STILL IN THE WORKS HE CITES A POWERFUL SHOWING AMONG TRANSPORTATION ISSUES A GROUP OF CYCLICAL STOCKS THAT GAINED AS A GROUP YESTERDAY STRENGTH AMONG TRANSPORTATION STOCKS IS A SIGN THAT INVENTORY IS MOVING AND THE ECONOMY IS ON AN UPSWING HE SAID THE DOW JONES TRANSPORTATION AVERAGE CLIMBED 463 POINTS OR 032 TO 145384 SHARES OF FEDERAL EXPRESS WERE UP 1 1/2 TO 56 WHILE NORFOLK SOUTHERN INCREASED BY 1 1/8 TO 62 3/8 AND SANTA FE PACIFIC GREW 1/8 TO 13 OTHERS AREN'T SO SURE THE MARKET IS BACKING OFF IN A NORMAL WAY AND I THINK IT WILL GIVE UP SOME OF ITS RECENT GAINS SAID THOMAS GALLAGHER MANAGING DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER & CO IT'S TIME FOR A CORRECTION HE SAID WEAKNESS IN THE FUTURES MARKET IS TUGGING THE STANDARD & POOR'S 500STOCK INDEX LOWER AND WILL EVENTUALLY WEIGH THE INDUSTRIAL AVERAGE DOWN RIGHT NOW YOU HAVE A FEW STOCKS THAT ARE SUPPORTING THE DOW SO IT'S NOT REFLECTING THE WEAKNESS IN THE MARKET HE ASSERTED THE S&P 500STOCK INDEX FUTURES CONTRACT FOR MARCH FELL 215 POINTS TO 43550 AMONG ISSUES KEEPING THE INDUSTRIAL AVERAGE ON HIGHER GROUND WERE GENERAL MOTORS UP 5/8 TO 32 7/8 ALUMINUM CO OF AMERICA UP 1 3/8 TO 73 AND DU PONT WHICH CLIMBED 1 1/8 TO 48 1/4 PROPONENTS OF A MARKET RALLY COULD FIND SUPPORT FROM A STUDY RELEASED YESTERDAY BY STANDARD & POOR'S CORP WHICH FOUND THAT THE NUMBERS OF COMPANIES RAISING DIVIDENDS JUMPED 19 LAST MONTH FROM A YEAR AGO IT WAS THE 14TH STRAIGHT MONTH OF YEARTOYEAR IMPROVEMENT HELENE CURTIS ADDED 1 1/4 TO 43 1/8 THE CHICAGOBASED COSMETICS CONCERN POSTED A THIRDQUARTER PROFIT OF 44 CENTS A SHARE OR 41 MILLION ON SALES OF 2664 MILLION MANY ANALYSTS EXPECTED SHAREEARNINGS OF ONLY 40 CENTS IN THE LATEST QUARTER A YEAR AGO THE COMPANY REPORTED NET INCOME OF 36 CENTS A SHARE OR 34 MILLION ON SALES OF 2285 MILLION CML GROUP SLIPPED 1 3/4 TO 32 1/2 AFTER THE ACTON MASS RECREATIONAL PRODUCTS MARKETER SAID IT INTENDS TO OFFER 50 MILLION IN CONVERTIBLE SUBORDINATED DEBENTURES IN EUROPE A SPOKESMAN SAID PROCEEDS WILL BE USED TO INCREASE THE NUMBER OF STORE OPENINGS AND TO EXPAND OPERATIONS DEL ELECTRONICS CLIMBED 3/4 TO 6 3/4 IN AMERICAN STOCK EXCHANGE TRADING THE VALHALLA NY MANUFACTURER OF HIGHVOLTAGE POWER CONVERSION SYSTEMS SAID ITS DYNARAD UNIT RECEIVED A 18 MILLION ORDER FOR PORTABLE DENTAL MEDICAL IMAGING EQUIPMENT DEL SAID DELIVERIES OF THE EQUIPMENT ARE SET TO BEGIN IN LATE SPRING AND WILL CONTINUE THROUGHOUT THE YEAR UNITED MEDICAL ALSO ON THE AMEX JUMPED 2 7/8 TO 9 1/4 ON NEWS THAT ITS BOARD APPROVED A PLAN TO BUY MOST OF ITS COMMON STOCK OUTSTANDING FOR 950 A SHARE GLAXO HOLDINGS PLC'S AMERICAN DEPOSITARY RECEIPTS INCHED 1/8 HIGHER TO 23 7/8 IN NEW YORK STOCK EXCHANGE TRADING AFTER IT SAID THE FOOD AND DRUG ADMINISTRATION APPROVED ITS ORAL FORMULATION OF ZOFRAN A DRUG USED TO FIGHT NAUSEA AND VOMITING ASSOCIATED WITH CANCER CHEMOTHERAPY THE COMPANY EXPECTS TO BEGIN DISTRIBUTING THE PRODUCT IN APRIL INTERNATIONAL RECOVERY ROSE 1 1/2 TO 14 1/8 THE MIAMI SPRINGS FLA RECYCLING CONCERN SAID IT FINISHED SELLING PARTS OF ITS SOILDECONTAMINATION BUSINESS TO PDG ENVIRONMENTAL OVERTHECOUNTER SHARES OF PDG MEANWHILE GAINED 5/8 TO 2 7/8 IONICS FELL 2 5/8 TO 65 1/4 A RAYMOND JAMES & ASSOCIATES ANALYST CUT HIS INVESTMENT RATING ON THE WATERTOWN MASS MAKER OF WATERTREATMENT EQUIPMENT TO LONGTERM BUY FROM STRONG BUY CITING THE STOCK'S PRICE THE ANALYST SAID THAT ALTHOUGH THE COMPANY'S FUNDAMENTALS ARE STILL INTACT THE ISSUE HAS GOTTEN AHEAD OF ITSELF MAKING ITS RISKREWARD ON A NEARTERM BASIS NOT VERY GOOD HE ALSO TRIMMED HIS 1993 EARNINGS ESTIMATE FOR IONICS TO A RANGE OF 230 TO 235 A SHARE FROM AN EARLIER PROJECTION OF 240 9301050150 930104 AS 1992 FADES INTO MEMORY HAVE YOUR MEMORIES OF IT FADED BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL PUNDITS HAVE YET TO COIN THE RIGHT NICKNAME BUT 1992 WILL ALMOST CERTAINLY GO DOWN AS THE YEAR WHEN OUTSIDERS FROM BILL CLINTON TO OUTSIDE DIRECTORS TOPPLED THE STATUS QUO FROM THE OVAL OFFICE TO THE BOARDROOM THE COMFORTABLE AND ESTABLISHED WERE AFFLICTED IF NOT OUSTED OUTRIGHT IT WAS ALSO THE SILLIEST OF SEASONS REAL LIFE AND FICTION OVERLAPPED TO THE POINT WHERE IT FELL TO A FICTIONAL TV CHARACTER TO DEBATE THE VICE PRESIDENT WHERE THE LONG ISLAND LOLITA CASE SPAWNED NOT ONE BUT THREE TV MOVIES AND WHERE WOODY ALLEN AND MIA FARROW FOUGHT ON SCREEN AND OFF BUT AMID THE SEEMINGLY ENDLESS FLAPS OVER THE ROYALS' SHENANIGANS AND THE SPELLING OF POTATO SOME IMPORTANT THINGS REALLY DID HAPPEN SO WHETHER TO REFRESH YOUR MEMORY OR IMPRESS YOUR FRIENDS TEST YOUR KNOWLEDGE OF LAST YEAR'S NEWS EVENTS A PERFECT SCORE IS 35 PLUS 4 BONUS POINTS BRANDON TARTIKOFF CHAIRMAN CEO OF RUBBERMAID INC RICHARD S BRADDOCK CHAIRMAN CEO OF GENERAL MOTORS CORP ROBERT C STEMPEL CHAIRMAN OF DOW CORNING CORP JOHN S LUDINGTON PRESIDENT OF CITICORP FRANCIS T FAY VINCENT CHAIRMAN OF PARAMOUNT PICTURES CORP BRANDON TARTIKOFF CHAIRMAN OF PARAMOUNT PICTURES CORP WALTER WILLIAMS CHAIRMAN CEO OF RUBBERMAID INC ROBERT C STEMPEL CHAIRMAN CEO OF GENERAL MOTORS CORP JOHN S LUDINGTON CHAIRMAN OF DOW CORNING CORP 9301050149 930105 ECOGEN SIGNS LICENSING PACT LANGHORNE PA ECOGEN INC SAID ITS AUSTRALIAN SUBSIDIARY REACHED A CROSSLICENSING AGREEMENT WITH THE COMMONWEALTH SCIENTIFIC AND INDUSTRIAL RESEARCH ORGANIZATION OF AUSTRALIA THE ACCORD CALLS FOR ECOGEN AN AGRICULTURAL BIOTECHNOLOGY CONCERN TO RECEIVE COEXCLUSIVE RIGHTS TO SEVERAL PATENTS HELD BY THE AUSTRALIAN GOVERNMENT AGENCY AND FOR THE AGENCY SIMILAR TO THE RESEARCH ARM OF THE US AGRICULTURE DEPARTMENT TO RECEIVE RIGHTS TO ONE PATENT HELD BY THE ECOGEN UNIT THE PATENTS INVOLVE INSECTICIDAL NEMATODES WHICH ARE MICROSCOPIC ROUNDWORMS THAT ATTACK INSECT LARVAE EITHER IN THE GROUND OR IN PLANT STEMS 9301050148 930105 THAILAND PLANS WAYS TO LOWER ITS ENERGY USE PROGRAM HOPES TO BOOST CONSERVATION AS NEEDS ARE EXPECTED TO DOUBLE BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND WHILE LAUNCHING A 36 BILLION PROGRAM TO MEET ENERGY NEEDS THAT ARE EXPECTED TO DOUBLE DURING THE NEXT 10 YEARS THAILAND IS ALSO PURSUING A PLAN TO BOOST ENERGY CONSERVATION AT A COST OF 190 MILLION THE ELECTRICITY GENERATING AUTHORITY OF THAILAND OR EGAT IS ABOUT TO EMBARK ON DEVELOPING WHAT IT SAYS IS THE WORLD'S FIRST DEMANDMANAGEMENT PROGRAM TO PROMOTE CONSERVATION AND MORE EFFICIENT USE OF ELECTRICITY OFFICIALS HOPE TO CREATE SAVINGS OF AS MUCH AS 10 ON ELECTRICITY USE IN THE NEXT DECADE THROUGH AGGRESSIVE NATIONWIDE PROMOTION AND BY OFFERING INCENTIVES TO BOTH MANUFACTURERS AND CONSUMERS EXCEPT FOR JAPAN WHICH HAS OFFICIALLY PROMOTED ENERGY CONSERVATION FOR YEARS NO OTHER ASIAN COUNTRY IS EVEN CONTEMPLATING SUCH A PROGRAM SUPPORTERS HOPE THAT IF EGAT SUCCEEDS IN REALIZING SIGNIFICANT GAINS IN ENERGY CONSERVATION OTHER ASIAN COUNTRIES MIGHT EMULATE THE PROGRAM DOING DEMANDSIDE MANAGEMENT IS MORE DIFFICULT BECAUSE IT INVOLVES CHANGING THE BEHAVIOR OF MILLIONS OF CONSUMERS BUT COMPARE THAT WITH THE COST OF BUILDING A NEW POWER PLANT SAYS PIYASAVATI AMRANAND EXECUTIVE DIRECTOR OF THE NATIONAL ENERGY POLICY OFFICE SET UP IN THE MID1980S TO COORDINATE ENERGY POLICY THE COST OF A NEW POWER PLANT VARIES CONSIDERABLY DEPENDING ON WHAT TYPE OF FUEL IT USES BUT FACILITIES CURRENTLY PROPOSED START AT NEARLY DOUBLE THE 190 MILLION PRICE TAG OF THE CONSERVATION PROGRAM CURRENTLY THAILAND RELIES MOSTLY ON ELECTRICITY GENERATED BY NATURAL GAS HYDROPOWER AND OIL BUT WILL TURN INCREASINGLY TO COAL AND LIGNITE THERE ARE ALSO DISCUSSIONS ABOUT USING NUCLEAR POWER THOUGH THE COST WOULD BE GREAT DEMAND FOR ELECTRICITY IS EXPECTED TO RISE ABOUT 10 A YEAR IN COMING YEARS UNDER ITS EXPANSION PROGRAM EGAT PLANS TO INCREASE ITS GENERATING CAPACITY TO MORE THAN 25000 MEGAWATTS FROM 10000 NOW EGAT HAS ALWAYS BEEN ONE OF THE MOST HIGHLY REGARDED STATE ENTERPRISES IN THAILAND WHILE TRAFFIC POLLUTION AND POTENTIAL WATER SHORTAGES DOMINATE LOCAL HEADLINES EGAT HAS PLANNED WELL STILL WHEN IT CAME TO CONSERVATION THE UTILITY WAS DUBIOUS WHEN DR PIYASAVATI OUTLINED HIS IDEAS FOUR OR FIVE YEARS AGO AFTER ALL EGAT PROFITED BY SELLING ELECTRICITY SO ENCOURAGING CONSUMERS TO USE LESS DIDN'T SEEM VERY APPEALING DR PIYASAVATI BEGAN PUSHING THE CONSERVATION PROGRAM AFTER STUDYING SIMILAR EFFORTS BY VARIOUS UTILITIES IN THE US AND CANADA HE FINALLY GOT A CHANCE TO TURN HIS IDEAS INTO POLICY DURING THE ADMINISTRATION OF PRIME MINISTER ANAND PANYARACHUN WHICH WAS MORE OPEN TO INNOVATIVE IDEAS THAN PREVIOUS GOVERNMENTS LAST YEAR HE CONVINCED THE CABINET THAT THE UTILITY WOULD SAVE A LOT OF MONEY BY PROMOTING CONSERVATION THAT COULD THEN ALLOW EGAT TO SLOW ITS EXPENSIVE BUILDING AGENDA HIS DATA SHOWED THAT NORTH AMERICAN UTILITIES SAVED 1 FOR EVERY 50 CENTS THEY SPENT ON SUCH PROGRAMS AS GIVING CONSUMERS REBATES FOR USING EFFICIENT APPLIANCES AND ACTIVELY PROMOTING A CHANGE IN PUBLIC ATTITUDES ABOUT ENERGY INITIALLY THAILAND'S DEMANDSIDE MANAGEMENT PROGRAM WILL CONCENTRATE ON LIGHTING INSTALLING IN HOMES AND OFFICES MOREEFFICIENT FIXTURES THAT WILL REDUCE CONSUMPTION IN THE NEXT FIVE YEARS THAT PORTION OF THE PROGRAM ALONE WLL SAVE EGAT THE EQUIVALENT OF ONE NEW POWER PLANT OVER THE NEXT DECADE THE SAVINGS COULD KNOCK 2 BILLION FROM THE EXPANSION PROGRAM'S 36 BILLION PRICE TAG THE LIGHTING PROGRAM WILL PUSH LOWERWATT LIGHT BULBS FOR HOME USE AND WILL AGGRESSIVELY PROMOTE 36WATT FLUORESCENT BULBS TO REPLACE THE 40WATT TUBES NOW USED IN MOST OFFICES MANY ENERGYEFFICIENT PRODUCTS ARE MANUFACTURED IN THAILAND BUT MOSTLY FOR EXPORT IN AN ATTEMPT TO SPREAD THEIR USE IN THAILAND EGAT OFFICIALS ARE WORKING WITH MANUFACTURERS ENCOURAGING THEM TO SWITCH PRODUCTION TO THE LOWERWATT BULBS AND TUBES PHILIPS ELECTRICAL CO ALREADY HAS REFITTED ITS JOINTVENTURE FACTORIES IN THAILAND TO PRODUCE 36WATT FLUORESCENT TUBES EGAT HAS BEEN ENCOURAGED BY THE COUNTRY'S SUCCESS IN PROMOTING UNLEADED GASOLINE INTRODUCED LESS THAN TWO YEARS AGO UNLEADED GAS ALREADY HAS MORE THAN 30 OF THE MARKET BECAUSE A LOWER TAX MAKES IT CHEAPER THAN LEADED GAS OFFICIALS HOPE TO APPLY SIMILAR METHODS TO HOME APPLIANCES FOR EXAMPLE WORKING CLOSELY WITH A CONSERVATION GROUP SANYO UNIVERSAL ELECTRIC CO HAS STARTED MAKING A REFRIGERATOR THAT USES 25 LESS ENERGY THAN TYPICAL MODELS SOLD IN THAILAND JUST BY DOUBLING THE AMOUNT OF INSULATION EACH MODEL USES THE NEW MODEL COSTS MORE THAN OLDER LESSEFFICIENT MODELS TO PRODUCE SO EGAT WILL TRY TO SUBSIDIZE MOST OF THE DIFFERENCE WHEN CONSUMERS PURCHASE ONE OF THE NEW REFRIGERATORS THEY WILL BEGIN TO REALIZE SAVINGS ON THEIR ELECTRIC BILLS AT ONCE EGAT WILL PROVIDE INCENTIVES FOR MANUFACTURERS TO PRODUCE MORE ENERGY EFFICIENT APPLIANCES THE BENEFIT THEN GOES TO THE CONSUMER SAYS TERRY OLIVER A SPECIALIST WITH THE INTERNATIONAL INSTITUTE FOR ENERGY CONSERVATION A NONGOVERNMENTAL ORGANIZATION THAT HELPED EGAT DESIGN THE DEMANDSIDE MANAGEMENT PROGRAM IF THERE IS ANY COMPLAINT ABOUT EGAT'S PROGRAM IT IS THAT IT IS MODEST ONE ACADEMIC SUGGESTS THAT EGAT COULD GO A LOT FURTHER BY ESTABLISHING TOUGHER BUILDING CODES AND SETTING MINIMUM EFFICIENCY STANDARDS FOR APPLIANCES USE OF BETTER INSULATION ALONE COULD SAVE 20 ON HOMECOOLING BILLS EGAT OFFICIALS CONCEDE THAT THE SCOPE OF THE PROGRAM IS LIMITED BUT ADD THAT THE PROGRAM IS ONLY A BEGINNING AT FIRST IT SHOULD BE UNDERSTANDABLE IT SHOULD BE SIMPLE AND IT SHOULD BE AVAILABLE TO ALL THE PEOPLE IT IS A START SAYS BANPOT SAENGKAO AN EGAT SENIOR ENGINEER RESPONSIBLE FOR IMPLEMENTING THE PROGRAM MR BANPOT AND OTHERS ARE CONFIDENT THE INITIAL PHASE WILL SUCCEED AND HOPE THAT WILL BRING A RAPID EXPANSION TO THE EFFORT IT IS IMPORTANT TO START THE PROGRAM IMMEDIATELY WE CAN SUPPLEMENT IT LATER SAYS DR PIYASAVATI IF THE PROGRAM IS A SUCCESS DR PIYASAVATI AND OTHERS HOPE THE IDEA WILL SPREAD AROUND THE REGION MR OLIVER OF IIEC SAYS EACH COUNTRY WILL HAVE TO DEVISE ITS OWN PLAN DEPENDING ON THE RESOURCES AVAILABLE AND PROJECTED DEMAND THESE IDEAS CAN BE APPLIED IN EVERY COUNTRY IT WILL BE A TREMENDOUS SAVINGS HE SAYS 9301050147 930105 INTERNATIONAL UK PURCHASING MANAGERS INDEX LONDON THE UK PURCHASING MANAGERS' INDEX BACKSLID SLIGHTLY IN DECEMBER AFTER RISING IN NOVEMBER ACCORDING TO FIGURES FROM THE CHARTERED INSTITUTE OF PURCHASING AND SUPPLY THE INDEX STOOD AT 492 IN DECEMBER DOWN FROM 495 IN NOVEMBER BUT STILL ABOVE 477 IN OCTOBER A READING BELOW 50 INDICATES A CONTRACTING ECONOMY THE INDEX WAS LAST ABOVE 50 IN JANUARY 1992 THE PURCHASING MANAGERS' OUTPUT INDEX STOOD AT 528 IN DECEMBER DOWN FROM 534 IN NOVEMBER BUT UP FROM 500 IN OCTOBER THE INSTITUTE SAID BUT THE NEW ORDERS INDEX ROSE TO 541 IN DECEMBER FROM 524 IN NOVEMBER AND 496 IN OCTOBER THE GROUP SAID EXPORT ORDERS CONTINUED TO RISE FOLLOWING THE SEPTEMBER DEVALUATION OF THE POUND 9301050146 930105 BUSINESS BRIEF COASTAL CORP MISSISSIPPI TO FLORIDA PIPELINE PLANNED TO CARRY NATURAL GAS COASTAL CORP HOUSTON SAID IT PLANS TO BUILD A 600MILE PIPELINE TO FLORIDA FROM MISSISSIPPI TO TRANSPORT NATURAL GAS COASTAL DECLINED TO DISCLOSE CONSTRUCTION COST ESTIMATES FOR THE PIPELINE BUT NEW PIPELINE CONSTRUCTION CURRENTLY COSTS IN THE RANGE OF 200000 TO 1 MILLION A MILE DEPENDING ON THE TERRAIN ACCORDING TO ROBERT CHRISTENSEN JR A GAS PIPELINE ANALYST AT MABON SECURITIES CORP THE PROPOSED PIPELINE WILL SUPPLY AN INITIAL VOLUME OF 120 MILLION CUBIC FEET OF GAS A DAY THAT WILL INCREASE TO 210 MILLION CUBIC FEET A DAY BY 1999 COASTAL SAID ITS MAIN CUSTOMER FOR THE NEW PIPELINE SO FAR IS FLORIDA POWER CORP A UNIT OF FLORIDA PROGRESS CORP OF ST PETERSBURG FLA COASTAL SAID IT IS IN NEGOTIATIONS WITH OTHER CUSTOMERS INCLUDING SEVERAL ELECTRIC UTILITIES INDUSTRIAL CUSTOMERS AND GAS DISTRIBUTION CONCERNS A SPOKESMAN ADDED THAT COASTAL IS IN DISCUSSIONS WITH OTHER POTENTIAL CUSTOMERS IN MISSISSIPPI AND ALABAMA THE 30INCH DIAMETER PIPELINE WILL ORIGINATE IN PASCAGOULA MISS CONSTRUCTION ON THE PIPELINE PROJECT PENDING REGULATORY APPROVALS WILL BEGIN IN 1994 COASTAL SAID OPERATIONS ARE PLANNED TO START IN 1995 9301050145 930105 DU PONT TO CUT HEALTH CARE BENEFITS IN '94 BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DU PONT CO JOINING THE GROWING NUMBER OF US MANUFACTURERS TRYING TO REIN IN HEALTHCARE COSTS SAID ITS US CHEMICAL DIVISION WOULD REDUCE HEALTH BENEFITS FOR 145000 CURRENT AND FORMER EMPLOYEES THEIR FAMILIES AND SURVIVORS AS OF NEXT JANUARY THE COMPANY ALSO ANNOUNCED SEVERAL CHARGES AGAINST 1992 EARNINGS INCLUDING A 48 BILLION CHARGE TO COVER RETIREE BENEFITS EMPLOYEES COVERED BY DU PONT'S US CHEMICAL DIVISION HEALTH PLAN WILL ON AVERAGE PAY 20 OF THEIR HEALTHCARE COSTS NEXT YEAR COMPARED WITH 11 CURRENTLY DU PONT SAID AND ANY HEALTHCARE COST INCREASES AFTER JAN 1 1997 WILL BE SPLIT 5050 WITH THE PLAN MEMBERS THE COMPANY ADDED DU PONT SAID THAT IN ADDITION TO SHIFTING COSTS TO EMPLOYEES IT WOULD EMPHASIZE SUCH COSTCONTAINING MOVES AS MANAGED HEALTH CARE PREVENTION AND WELLNESS PROGRAMS AND EFFORTS TO ELIMINATE WASTE IN ITS HEALTHCARE SPENDING EARL L TIMMONS DU PONT VICE PRESIDENTFINANCE AND CONTROLLER SAID THE WILMINGTON DEL CHEMICAL AND OIL COMPANY HASN'T ESTIMATED HOW MUCH AVERAGE HEALTHCARE COSTS WILL INCREASE FOR EACH OF ITS PLAN MEMBERS BUT HE SAID THE NEW PLAN IS EXPECTED TO SAVE DU PONT 125 MILLION ANNUALLY IN PROJECTED HEALTHCARE COST INCREASES OVER THE NEXT FOUR YEARS DU PONT'S HEALTHCARE BILL DOUBLED OVER THE PAST FIVE YEARS REACHING ABOUT 500 MILLION IN 1992 MR TIMMONS SAID MR TIMMONS SAID THAT OVER THE PAST SEVERAL YEARS DU PONT'S HEALTHCARE COSTS HAVE BEEN INCREASING AT ABOUT 12 A YEAR WHICH WHILE HIGH WERE STILL BELOW THE NATIONAL AVERAGE OF MORE THAN 14 A YEAR HE ESTIMATED THAT DU PONT WILL BE ABLE TO KEEP FUTURE HEALTH CARE COST INCREASES CLOSER TO 5 ANNUALLY BY ADOPTING THE PLANNED CHANGES EDGAR S WOOLARD DU PONT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THERE WAS A TIME WHEN INCREASED HEALTH CARE COSTS COULD BE MADE UP THROUGH INCREASES IN THE PRICES OF OUR PRODUCTS THIS IS NOW IMPOSSIBLE HE SAID SLUMPING ECONOMIES AROUND THE WORLD AND COMPETITION FROM FOREIGN COMPANIES THAT DON'T PAY DIRECTLY FOR EMPLOYEE HEALTH CARE WERE FORCING DU PONT TO SHIFT MORE HEALTHCARE COSTS TO CURRENT AND FORMER WORKERS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DU PONT CLIMBED 1125 TO 4825 DU PONT HAS APPROXIMATELY 126000 EMPLOYEES WORLDWIDE AND ABOUT 74500 IN ITS US CHEMICAL OPERATIONS COMPANY EMPLOYEES BASED OUTSIDE THE US AS WELL AS THE ROUGHLY 20000 EMPLOYEES OF ITS CONOCO OIL UNIT ARE COVERED BY SEPARATE HEALTH PLANS THAT ALSO WILL BE TRIMMED BEGINNING NEXT YEAR DU PONT SAID DU PONT REFLECTING THE ADOPTION OF REQUIRED CHANGES IN ACCOUNTING FOR ACCRUED POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS AS WELL AS FOR INCOME TAXES ALSO SAID IT WOULD RESTATE EARNINGS FOR THE FIRST THREE QUARTERS OF 1992 AND TAKE A 48 BILLION OR 715 A SHARE AFTERTAX CHARGE AGAINST EARNINGS IN LAST YEAR'S FIRST QUARTER SEPARATELY DU PONT SAID IT WOULD TAKE AFTERTAX CHARGES TOTALING ABOUT 275 MILLION OR 40 CENTS A SHARE IN LAST YEAR'S FOURTH QUARTER THOSE CHARGES COVER THE COST OF AT LEAST 1200 STAFF CUTS THAT ARE PART OF A CONTINUING COSTREDUCTION PLAN ANALYSTS ESTIMATED THE CHARGES ALSO COVER THE COST OF CLOSING SEVERAL US FACILITIES INCLUDING A FIREDAMAGED NYLON PLANT IN RICHMOND VA MR TIMMONS SAID DU PONT HASN'T YET DISCUSSED THE HEALTHCARE CUTS WITH THE UNIONS WHOSE MEMBERS ARE EMPLOYED BY DU PONT PLAN MEMBERS AFFECTED BY THE PLANNED CUTS WERE NOTIFIED IN LETTERS DATED DEC 31 DU PONT SAID THAT 1992 EARNINGS EXPECTED TO BE REPORTED LATE THIS MONTH WILL ALSO BE REDUCED BY ABOUT 200 MILLION OR 30 CENTS A SHARE TO REFLECT ACCOUNTING FOR INCREASES IN HEALTHCARE COSTS UNDER DU PONT'S CURRENT PLAN DU PONT SAID THE CHANGES IN ITS HEALTH PLANS BEGINNING NEXT YEAR WILL VIRTUALLY ELIMINATE SUCH INCREMENTAL CHARGES GOING FORWARD AMONG OTHER US MANUFACTURERS TRYING TO CONTAIN HEALTH COSTS CATERPILLAR INC PEORIA ILL IN NOVEMBER SAID IT WOULDN'T PAY FOR INCREASES IN HEALTHCARE COSTS FOR TENS OF THOUSANDS OF RETIREES AFTER 1999 EARLIER IN NOVEMBER UNISYS CORP BLUE BELL PA ADOPTED A MORE DRASTIC MEASURE SAYING IT PLANNED TO STOP PAYING RETIREE MEDICAL BENEFITS IN THREE YEARS AND AEROSPACE CONCERN MCDONNELL DOUGLAS CORP SAID LAST FALL THAT IT WILL PAY HEALTH BENEFITS FOR RETIREES WHO WERE SALARIED WORKERS FOR ONLY FOUR MORE YEARS NAVISTAR INTERNATIONAL CORP BASED IN CHICAGO BACKED AWAY FROM A PLAN TO CUT RETIREE HEALTH BENEFITS AND LATE LAST FALL BEGAN NEGOTIATING WITH THE UNITED AUTO WORKERS ON THE ISSUE SEPARATELY SEAGRAM CO WHICH HOLDS A 244 STAKE IN DU PONT SAID IT WOULD TAKE A NONCASH CHARGE OF 14 BILLION OR 370 A SHARE TO ADOPT THE HEALTHCARE ACCOUNTING CHANGE AND A TAX ACCOUNTING CHANGE FOR ITS FISCAL YEAR ENDING JAN 31 FOR CANADIAN REPORTING PURPOSES THE ACCOUNTING CHANGES WILL BE CHARGED TO RETAINED EARNINGS ON ITS BALANCE SHEET AND NOT RECOGNIZED ON THE INCOME STATEMENT THE MONTREALBASED MAKER OF DISTILLED SPIRITS WINES AND OTHER BEVERAGES SAID IT WILL TAKE A CATCHUP CHARGE OF 108 BILLION FOR ACCRUED RETIREE BENEFIT LIABILITIES FROM PRIOR YEARS THE TOTAL INCLUDES ABOUT 950 MILLION REPRESENTING ITS SHARE OF THE CHARGE TAKEN BY DU PONT SEAGRAM SAID ITS BALANCE SHEET WILL REFLECT A 950 MILLION REDUCTION IN THE BOOK VALUE OF ITS DU PONT STAKE SEAGRAM SAID THAT IN ADDITION TO THE ONETIME CHARGE THE NEW ACCOUNTING RULE WILL MEAN AN INCREASE OF 10 MILLION ANNUALLY IN CONTINUING RETIREEBENEFIT COSTS UNLESS CHANGES ARE MADE TO CURRENT BENEFIT PLANS A COMPANY SPOKESMAN SAID SEAGRAM IS EXAMINING ITS HEALTH PLANS BUT HASN'T DECIDED YET ON ANY CHANGES SEAGRAM ALSO WILL TAKE ONETIME CHARGES TOTALING 325 MILLION FOR CHANGES IN ACCOUNTING FOR DEFERRED TAXES THE TOTAL INCLUDES 250 MILLION REPRESENTING SEAGRAM'S SHARE OF THE DU PONT CHARGE FOR THE NEW DEFERREDTAX ACCOUNTING SEAGRAM WILL RESTATE THE FIRST THREE QUARTERS OF THE CURRENT FISCAL YEAR TO REFLECT THE ACCOUNTING CHANGES THE TOTAL CHARGE OF 14 BILLION INCLUDES THE 12 BILLION REPRESENTING ITS SHARE OF DU PONT'S TOTAL CATCHUP LIABILITY 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 9301050144 930105 WHO'S NEWS PHARMOR INC PHARMOR INC YOUNGSTOWN OHIO DANIEL O'LEARY FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF FAY'S INC WAS NAMED CHIEF FINANCIAL OFFICER OF THIS DEEPDISCOUNT RETAILER WHICH IS UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION MR O'LEARY 46 YEARS OLD SUCCEEDS PATRICK FINN WHO WAS FIRED IN JULY AMID ALLEGATIONS OF FRAUD AND EMBEZZLEMENT 9301050143 930105 WHO'S NEWS HAVERTY FURNITURE COS HAVERTY FURNITURE COS ATLANTA DENNIS L FINK WAS NAMED SENIOR VICE PRESIDENT FINANCE OF THIS FURNITURE RETAILER MR FINK 42 YEARS OLD SUCCEEDS ROGER P WHITAKER 40 WHO RESIGNED TO PURSUE OTHER INTERESTS ACCORDING TO THE COMPANY MR FINK HAD BEEN CHIEF FINANCIAL OFFICER OF HORIZON INDUSTRIES INC CALHOUN GA 9301050142 930105 SEQUENT COMPUTER'S OPERATING CHIEF QUITS AND STOCK PLUMMETS BEAVERTON ORE SEQUENT COMPUTER SYSTEMS INC SAID JAY RICHARDS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED MR RICHARDS A COMPUTER INDUSTRY VETERAN WHO JOINED SEQUENT IN 1989 AND BECAME CHIEF OPERATING OFFICER IN SEPTEMBER 1991 SAID HE WAS STEPPING DOWN TO PURSUE OTHER INTERESTS HE COULDN'T BE REACHED TO ELABORATE SEQUENT'S STOCK SKIDDED APPARENTLY IN PART BECAUSE OF MR RICHARDS' DEPARTURE IN OVERTHECOUNTER TRADING YESTERDAY SEQUENT CLOSED AT 19125 DOWN 175 ANALYSTS SAID THE SLIDE REFLECTED INVESTORS' BELIEF THAT MR RICHARDS WAS A KEY MEMBER OF A MANAGEMENT TEAM THAT HELPED SEQUENT RESTORE PROFITABILITY IN 1992 THE COMPANY POSTED A 1991 LOSS OF 487 MILLION OR 210 A SHARE BUOYED BY NEW PRODUCTS IT EARNED 81 MILLION OR 32 CENTS A SHARE FOR THE NINE MONTHS ENDED SEPT MR RICHARDS WAS AN INTEGRAL PART OF THE COMPANY'S COMEBACK AND HIS LEAVING COULD MAKE SOME INVESTORS NERVOUS SAID CRAIG SULTAN AN ANALYSTS WITH MONTGOMERY SECURITIES MR SULTAN SAID PROFITTAKING ALSO MAY HAVE CONTRIBUTED TO THE STOCK'S DROP SEQUENT SHARES JUMPED IN THE WANING WEEKS OF LAST YEAR SEQUENT SAID IT HAS NO IMMEDIATE PLAN TO NAME A NEW CHIEF OPERATING OFFICER IT SAID MR RICHARDS' RESPONSIBILITIES WILL BE TRANSFERRED TO OTHER EXECUTIVES 9301050141 930105 WHAT'S NEWS WORLDWIDE CLINTON SPOKE BY PHONE WITH RUSSIA'S YELTSIN ABOUT THE START II PACT THE PRESIDENTELECT ACCEPTED YELTSIN'S INVITATION FOR A SUMMIT IN THE NEAR FUTURE AND PLEDGED TO DO ALL HE COULD TO GET EARLY RATIFICATION OF THE ARMSCONTROL TREATY THE TWO LEADERS AGREED THAT RUSSIAN FOREIGN MINISTER KOZYREV AND SECRETARY OF STATEDESIGNATE CHRISTOPHER WOULD BEGIN TALKS ABOUT SETTING UP A DIALOGUE ON THE STRATEGIC ARMSCONTROL TREATY AND OTHER ISSUES CLINTON SCHEDULED A MEETING WITH HIS ECONOMIC ADVISERS FOR THURSDAY TO BEGIN CHOOSING AMONG OPTIONS FOR AN ECONOMIC PROGRAM WHICH HE HAS PROMISED TO UNVEIL JUST AFTER HIS INAUGURATION A SHIP WITH 17 TONS OF PLUTONIUM ARRIVED IN TOKAI JAPAN AFTER A TWOMONTH VOYAGE HALFWAY AROUND THE WORLD THAT SPARKED OUTRAGE FROM ANTINUCLEAR PROTESTERS THE SHIP WAS FLANKED BY OVER A DOZEN COAST GUARD VESSELS WHEN IT ARRIVED JAPAN HAS SAID IT WANTS TO BRING IN 30 TONS OF PLUTONIUM WITHIN A DECADE FOR USE IN COMMERCIAL REACTORS BOSNIAN PEACE TALKS RECESSED ABRUPTLY IN GENEVA AND INTERNATIONAL MEDIATORS SAID THE SERBS WERE HOLDING UP A COMPROMISE PLAN TO END FIGHTING IN THE FORMER YUGOSLAV REPUBLIC THE MUSLIM SERB AND CROAT LEADERS AGREED TO RESUME NEGOTIATIONS SUNDAY HEALTHCARE SPENDING WILL JUMP 121 TO NEARLY 1 TRILLION THIS YEAR AND WILL CONTINUE TO CLIMB AT A DOUBLEDIGIT PACE UNLESS THE NATION'S MEDICAL SYSTEM IS OVERHAULED THE COMMERCE DEPARTMENT PREDICTED THE DEPARTMENT SAID 1992 HEALTHCARE SPENDING WAS 8385 BILLION AN 115 RISE FROM 1991 SIHANOUK DECLARED HE WOULD NO LONGER COOPERATE WITH THE UN PEACEKEEPING MISSION IN CAMBODIA OR THE COUNTRY'S VIETNAMESEINSTALLED GOVERNMENT THE PRINCE WHO HEADS A RECONCILIATION COUNCIL CITED THE UN'S FAILURE TO HALT POLITICAL VIOLENCE A CONGRESSIONAL REPORT CHASTISED THE JUSTICE DEPARTMENT FOR NOT SEEKING TO INDICT INDIVIDUALS FOR ENVIRONMENTAL CRIMES AT THE ROCKY FLATS ARMS FACILITY IN COLORADO THE REPORT SAID OFFICIALS DETERMINED EARLY IN THEIR PROBE THAT THEY WOULDN'T PROSECUTE INDIVIDUALS EITHER AT THE ENERGY DEPARTMENT OR AT ROCKWELL INTERNATIONAL THE OPERATOR UN CHIEF BOUTROSGHALI URGED SOMALI CLAN LEADERS MEETING IN ETHIOPIA TO WORK TOWARD RECONCILIATION BUT HIS PRESENCE IN ADDIS ABABA SPARKED A DEMONSTRATION IN WHICH ONE PERSON DIED IN SOMALIA THE US ARMY SENT A TEAM TO KISMAYU TO PROBE THE MURDER OF A UNICEF EMPLOYEE AND THE DEATHS OF 15 SOMALIS FOUND IN A MASS GRAVE THE FBI JOINED THE HUNT FOR THREE WHITE MEN WHO ALLEGEDLY ABDUCTED A BLACK MAN ON NEW YEAR'S MORNING IN FLORIDA TOOK HIM TO A REMOTE AREA SOUTHEAST OF TAMPA ROBBED HIM THEN DOUSED HIM WITH GASOLINE AND SET HIM ABLAZE INVESTIGATORS SAID THE ATTACKERS USED RACIAL EPITHETS THE VICTIM FROM NEW YORK WAS IN SERIOUS BUT STABLE CONDITION DEFENSE SECRETARY CHENEY SAID HE WOULD CONSIDER A PRESIDENTIAL RUN IN 1996 NOTING HIS CONCERN ABOUT US MILITARY CUTS PLANNED BY PRESIDENTELECT CLINTON CHENEY SAID THE FORMER SOVIET UNION IS A HUGE QUESTION MARK AND THE NEW ADMINISTRATION NEEDS TO ADOPT A CERTAIN ELEMENT OF CAUTION HONG KONG'S BRITISH GOVERNOR RULED OUT A REFERENDUM ON POLITICAL REFORMS THAT HAVE BEEN CRITICIZED BY CHINA GOV PATTEN SAID A VOTE ON CONSTITUTIONAL CHANGES TO INCREASE THE NUMBER OF LEGISLATORS AND WIDEN THE VOTER BASE WOULD BE DIVISIVE HONG KONG IS TO REVERT TO CHINESE RULE IN 1997 A TOURIST BUS OVERTURNED NEAR THE MEXICAN RESORT OF CANCUN AND SLAMMED INTO AN ELECTRICAL UTILITY POLE KILLING 25 PEOPLE INCLUDING AS MANY AS 14 AMERICANS OFFICIALS SAID THE BUS CARRYING 52 PASSENGERS ON A DAY TRIP TO THE MAYAN RUINS AT CHICHEN ITZA APPARENTLY WAS SPEEDING WHEN IT CRASHED EARLY SUNDAY ACCORDING TO POLICE A FEDERAL JUDGE IN FLORIDA REJECTED AN EFFORT TO BAR HIS FORMER COLLEAGUE REPELECT ALCEE HASTINGS FROM TAKING HIS SEAT IN THE NEW CONGRESS BECAUSE OF HIS IMPEACHMENT CONVICTION HASTINGS 56 FLORIDA'S FIRST BLACK FEDERAL DISTRICT JUDGE WAS ACQUITTED IN A BRIBERY TRIAL BUT WAS IMPEACHED BY CONGRESS FOR ALLEGEDLY HAVING LIED AT HIS TRIAL CANADA'S PRIME MINISTER ANNOUNCED A CABINET RESTRUCTURING AHEAD OF ELECTIONS LATER THIS YEAR MULRONEY HOWEVER DECLINED TO ANSWER A QUESTION CONCERNING HIS PERSONAL POLITICAL PLANS 9301050140 930105 DSC RETIRES UNSECURED DEBT DALLAS DSC COMMUNICATIONS CORP SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED FINAL PAYMENT OF 45 MILLION TO A GROUP OF SENIOR UNSECURED BANK CREDITORS THE COMPANY SAID IT GENERATED SUFFICIENT CASH DURING 1992 TO RETIRE ITS ENTIRE 135 MILLION OF UNSECURED BANK DEBT THE TELECOMMUNICATIONS COMPANY ALSO SAID IT REACHED A FINAL AGREEMENT AND CLOSED ON A NEW 225 MILLION LINE OF CREDIT WHICH MATURES ON JUNE 30 1993 AND WHICH WILL BE AVAILABLE AS NEEDED IF USED IT WILL BEAR INTEREST AT PRIME PLUS 15 9301050139 930105 DIVIDEND NEWS FIDELITY FEDERAL SAVINGS BANK FIDELITY FEDERAL SAVINGS BANK RICHMOND VA SAID IT WILL DECLARE AN INITIAL QUARTERLY CASH DIVIDEND OF FOUR CENTS A SHARE SOMETIME IN MARCH WHICH WILL BE PAYABLE APRIL 30 THE COMPANY SAID THE BOARD DECIDED TO BEGIN PAYING DIVIDENDS BECAUSE IT EXPECTS 1992 EARNINGS TO BE SUBSTANTIALLY HIGHER THAN 1991 RESULTS AND IT HAS AN OPTIMISTIC OUTLOOK FOR 1993 EARNINGS FIDELITY FEDERAL SAVINGS BANK IS A LOCALLY OWNED BANK WITH 230 MILLION IN ASSETS 9301050138 930105 TECHNOLOGY HEALTH GROUP SEEKS TOBACCO TAX RISE TO GENERATE REVENUE REDUCE SMOKING BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A COALITION OF MAJOR HEALTH ORGANIZATIONS PLANS TO PRESS THE CLINTON ADMINISTRATION FOR A SHARP INCREASE IN FEDERAL TAXES ON CIGARETTES BOTH TO RAISE REVENUE AND DISCOURAGE SMOKING THE COALITION ON SMOKING OR HEALTH IS EXPECTED TO RELEASE A STUDY TOMORROW THAT SHOWS A STIFF 2APACK CIGARETTE TAX WOULD RAISE 38 BILLION IN ANNUAL REVENUE AND PREVENT TWO MILLION DEATHS OVER SEVERAL DECADES BECAUSE PEOPLE WOULD QUIT SMOKING OR FORGO STARTING THE FEDERAL EXCISE TAX ON CIGARETTES IS CURRENTLY 24 CENTS A PACK FEDERAL AND STATE TAXES COMBINED COMPRISE AN AVERAGE 46 CENTS OF THE AVERAGE COST OF 175 FOR A PACK OF CIGARETTES AT A WASHINGTON PRESS CONFERENCE SCHEDULED FOR TOMORROW THE COALITION DOESN'T PLAN INITIALLY TO CALL FOR AN INCREASE OF A SPECIFIC AMOUNT ALTHOUGH IT SUPPORTS A RISE IN THE RANGE OF 2 THE GROUP MADE UP OF THE AMERICAN CANCER SOCIETY THE AMERICAN HEALTH ASSOCIATION AND THE AMERICAN LUNG ASSOCIATION MADE SIMILAR PROPOSALS IN THE PAST WITH LITTLE SUCCESS BUT COALITION OFFICIALS AND SOME ECONOMISTS SAY THE CLINTON ADMINISTRATION MAY BE MORE RECEPTIVE BECAUSE OF THE NEED TO GENERATE REVENUE TO PAY FOR NEW SPENDING ON INFRASTRUCTURE AND HEALTHINSURANCE REFORM THIS IS A VERY DIFFERENT ENVIRONMENT SAID KENNETH WARNER AN ECONOMIST AT THE UNIVERSITY OF MICHIGAN'S SCHOOL OF PUBLIC HEALTH THE TIMES ARE MUCH MORE CONDUCIVE TO ACCEPTING A LARGE TAX INCREASE MOREOVER HEALTH GROUPS PLAN TO LINK MR CLINTON'S PROMISE TO OVERHAUL THE COUNTRY'S HEALTHCARE SYSTEM TO A MORE AGGRESSIVE STANCE ON SMOKING ISSUES IN THE US WHICH HAS 46 MILLION TO 50 MILLION ADULT SMOKERS SOME 430000 PEOPLE DIE EACH YEAR DUE TO SMOKINGRELATED ILLNESSES RESULTING IN HEALTH COSTS ESTIMATED AT 65 BILLION ANNUALLY YOU CAN'T LEGITIMATELY TALK ABOUT HEALTHCARE REFORM WITHOUT TALKING ABOUT TOBACCO SAID SCOTT D BALLIN A HEART ASSOCIATION OFFICIAL IN ADDITION TO RAISING REVENUE A CIGARETTE TAX INCREASE REDUCES THE NUMBER OF SMOKERS VARIOUS STUDIES SHOW WHEN CIGARETTE PRICES RISE 10 CONSUMPTION DROPS BY 4 SAID MR WARNER THE ECONOMIST IN CANADA FEDERAL TAXES ON CIGARETTES HAVE NEARLY TRIPLED SINCE 1984 LEADING TO A 40 DROP IN SMOKING ACCORDING TO DAVID SWEANOR AN ATTORNEY WITH THE NONSMOKERS' RIGHTS ASSOCIATION IN OTTAWA ONTARIO FOR YOUNG SMOKERS HIGHER PRICES ARE AN EVEN MORE POWERFUL DETERRENT IN CANADA STUDIES SHOW THAT A 1 INCREASE IN PRICE LEADS TO A 1 DECLINE IN TOBACCO CONSUMPTION BY TEENAGERS IN THE US THE PUBLIC SEEMS INCREASINGLY WILLING TO TAX SMOKERS VOTERS HAVE APPROVED BIG TOBACCO TAX RISES IN CALIFORNIA AND MASSACHUSETTS IN RECENT YEARS DEE DEE MEYERS A SPOKESWOMAN FOR THE CLINTON TRANSITION TEAM SAID THE PRESIDENTELECT HASN'T TAKEN A POSITION ON SUCH A TAX INCREASE IT IS AN OPTION SHE SAID HE HASN'T TAKEN THINGS LIKE ALCOHOL OR TOBACCO TAXES OFF THE TABLE BUT THE TOBACCO INDUSTRY AND FINANCIAL ANALYSTS SEE LITTLE THREAT A SPOKESWOMAN FOR THE TOBACCO INSTITUTE SAID SHE INTERPRETS MR CLINTON'S CAMPAIGN PLEDGE TO AVOID RAISING TAXES ON THE MIDDLE CLASS AS A SIGN THAT HE WOULD OPPOSE RAISING TOBACCO TAXES THAT'S WHERE THE SMOKERS ARE SHE SAID I WOULD BE SURPRISED IF THEY GOT THROUGH CONGRESS AN ACTUAL DOUBLING OF THE EXCISE TAX ADDED REBECCA BARFIELD A TOBACCO ANALYST WITH FIRST BOSTON CORP THE NATION'S TWO LARGEST TOBACCO COMPANIES PHILIP MORRIS COS AND RJ REYNOLDS TOBACCO CO A UNIT OF RJR NABISCO INC DECLINED TO COMMENT 9301050137 930105 CREDIT MARKETS BOND RALLY IGNORES ECONOMY'S SIGNS OF STRENGTH BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THIS IS THE BOND MARKET RALLY THAT MUCH OF WALL STREET DOESN'T SEEM TO WANT TO BELIEVE TREASURY BOND PRICES HAVE BEEN CLIMBING STEADILY AND YIELDS HAVE BEEN EDGING LOWER FOR WEEKS THE 30YEAR TREASURY BOND YIELD YESTERDAY CAME TO THE BRINK OF SLIPPING BELOW 73 OFF FROM MORE THAN 775 TWO MONTHS AGO WHEN THE NATION ELECTED A DEMOCRATIC PRESIDENT IT FINISHED THE DAY AT 732 A THREEMONTH LOW AS THE PRICE CLIMBED 7/8 OF A POINT OR 875 FOR EACH 1000 FACE AMOUNT WHY ARE BONDS CONTINUING TO RALLY DESPITE A RAFT OF RECENT STATISTICS SUGGESTING THAT THE ECONOMY IS FINALLY GAINING STRENGTH THE REASONS ARE ECONOMIC PSYCHOLOGICAL AND SEASONAL THE PACE OF THE RECOVERY IS SO FAR FROM TORRID THAT MANY INVESTORS BELIEVE IT WON'T TRIGGER BONDKILLING INFLATION RATES ANY TIME SOON THE STRENGTHENING DOLLAR IS HELPING BONDS BY ATTRACTING BUYING FROM ABROAD TRADERS ARE SOOTHED BY SIGNS THAT PRESIDENTELECT CLINTON WON'T IGNORE THE BUDGET DEFICIT AND THE SEASONAL FACTOR TRADING VOLUME IS EXTREMELY LIGHT SO ANY BUYING HAS AN EXAGGERATED EFFECT SKIMPY TRADING VOLUME HAS CERTAINLY BEEN A BIG PART OF IT SAYS JOHN P COSTAS HEAD OF THE GOVERNMENT TRADING DESK AT FIRST BOSTON CORP BUT ALSO THERE IS A SENSE OF CONFIDENCE AND COMFORT THAT IS DEVELOPING IN THE MARKET IT WILL PROBABLY CONTINUE TO IMPROVE UP UNTIL INAUGURATION DAY ON JAN 20 THEN THE BOND MARKET WILL FACE A NEW TEST ANY SIGN THAT A SPENDTHRIFT PRESIDENT WILL MAKE BIG OUTLAYS TO JOLT THE NATION OUT OF HARD TIMES COULD CLOBBER THE TREASURY BOND MARKET BECAUSE OF THE INFLATIONBOOSTING POTENTIAL OF MAJOR SPENDING PROGRAMS LONGTERM YIELDS IN THE BOND MARKET HAVE BEEN DROPPING WHILE SHORTTERM RATES HAVE ZIGZAGGED THE TWOYEAR NOTE FOR EXAMPLE YIELDED 444 AS OF LATE YESTERDAY UP FROM 367 IN EARLY OCTOBER BUT DOWN FROM 482 JUST ONE MONTH AGO THE RECENT DROP IN SHORTTERM RATES COULD BE A SIGN THAT INVESTORS BELIEVE THE ECONOMY IS NOT QUITE AS ROBUST AS HAD BEEN BELIEVED SHORTTERM RATES OFTEN RISE IN A GROWING ECONOMY AS INVESTORS BEGIN TO EXPECT THAT THE FEDERAL RESERVE WILL TIGHTEN ACCESS TO CREDIT TO STAVE OFF INFLATIONARY PRESSURE BUT SO FAR DATA ON RETAIL SALES DURING THE IMPORTANT CHRISTMAS SEASON SHOW ONLY MODEST INCREASES FROM A YEAR EARLIER THE END OF THE RECENT BOND RALLY COULD BE NEAR TRADERS SAY IF INVESTORS PERCEIVE THAT MR CLINTON ISN'T FULFILLING HIS CAMPAIGN PROMISES TO WORK TO REDUCE THE FEDERAL DEFICIT A CLIMB IN BOND YIELDS WOULD BE THE BOND MARKET'S RESPONSE THEY SAY AND IF MORE INVESTORS PERCEIVE THE STOCK MARKET AS BEING A BETTER PLACE TO INVEST AS THE ECONOMY PICKS UP SPEED THE DANGER TO BONDS WOULD BE STILL GREATER ACCORDING TO GREG ERARDI HEAD OF GOVERNMENT TRADING AT SALOMON BROTHERS INC PRICES ROSE BEFORE ELECTION DAY IN ANTICIPATION OF WHAT A DEMOCRAT IN THE WHITE HOUSE WOULD MEAN BUT SINCE ELECTION DAY PEOPLE IN THE BOND MARKET HAVE BEEN SOMEWHAT SURPRISED AND PLEASED BY WHAT THEY'VE BEEN HEARING IN TERMS OF CABINET APPOINTMENTS AND POTENTIAL RESPONSES TO THE AILING ECONOMY HE SAYS MR CLINTON AND HIS ADVISERS HAVE BEEN SAYING THE RIGHT THINGS TO THE MARKET SAYS MR ERARDI AT THE SAME TIME HE POINTS OUT THE ECONOMY HAS SHOWN SOME STRENGTH AND THAT TOOK AWAY SOME OF THE FEARS OF THE BOND MARKET OF A LARGE SPENDING PACKAGE ADDING STRENGTH TO THE RALLY HAS BEEN AN INCREASE IN FOREIGN BUYING IN THE US TREASURY MARKET SINCE EARLY SEPTEMBER THE DOLLAR HAS SURGED ABOUT 18 AGAINST THE MARK THUS MAKING DOLLARDENOMINATED SECURITIES A MORE ATTRACTIVE INVESTMENT FOR FOREIGN INVESTORS THERE HAS BEEN A SUBSTANTIAL AMOUNT OF INTEREST IN OUR MARKET FROM EUROPE AND THE FAR EAST MR ERARDI SAYS JAPANESE INVESTORS IN PARTICULAR HAVE PLAYED AN INCREASINGLY LARGER ROLE IN THE US TREASURY MARKET MR ERARDI SAYS BECAUSE LARGE AMOUNTS OF LOWERYIELDING JAPANESE GOVERNMENT BONDS MATURE IN DECEMBER AND JANUARY AND HOLDERS NEED TO REINVEST THEIR MONEY IN THE ENVIRONMENT OF LOW JAPANESE RATES AND HIGHER US RATES AND THE POTENTIAL FOR A STABLE DOLLAR SAYS MR ERARDI THE REASONABLE ASSUMPTION IS THAT SOME OF THAT MONEY WOULD FLOW INTO THE US TREASURY MARKET THE WORLD BANK IS COUNTING ON THE INCREASED DEMAND TO PUSH YIELDS DOWN FOR A MASSIVE GLOBAL BOND OFFERING IT MAY BRING TO MARKET AS SOON AS TOMORROW THE WORLD BANK IS ONE OF THE MOST ACTIVE ISSUERS IN THE GLOBAL BOND MARKET CORPORATIONS SOLD NEARLY 700 MILLION OF NEW DEBT YESTERDAY WHILE OTHERS SIGNALED THEIR INTENTION TO SELL BONDS SOON INVESTMENTGRADE BOND PRICES ENDED 1/8 POINT TO 5/8 POINT HIGHER YESTERDAY WHILE JUNK BONDS ROSE BY 1/8 POINT ACCORDING TO PAUL SIEGELBAUM HEAD OF THE YEN/DOLLAR FUNDING DIVISION AT THE WORLD BANK THE DECISION TO MAKE THE OFFERING THIS WEEK CAME BECAUSE ALL OF THE LIGHTS ARE GREEN HE POINTS OUT THAT LOW INTEREST RATES AND THE NARROW INTEREST RATE GAP BETWEEN OTHER GLOBAL BONDS AND COMPARABLE US TREASURYS MEANT THAT NOW WAS THE TIME TO COME TO MARKET ACCORDING TO MR SIEGELBAUM THE ISSUE WILL BE THE WORLD BANK'S LONGEST DATED GLOBAL BOND OFFERING THUS FAR THE BANK'S PREVIOUS US DOLLARDENOMINATED GLOBAL BONDS HAVE HAD MATURITIES RANGING FROM FIVE YEARS TO 10 YEARS MR SIEGELBAUM SAYS THAT SUCH A LONG MATURITY HAS BEEN A FAVORITE AMONG US INVESTORS BUT HASN'T BEEN AS POPULAR OUTSIDE THE US BECAUSE OF LOW LIQUIDITY THIS MEANS THAT UNLESS AN ISSUER IS ABLE TO OFFER A LARGE ISSUE MANY INVESTORS WOULD BE UNWILLING TO PURCHASE THE BONDS BECAUSE IT WOULD BE DIFFICULT TO BUY AND SELL THEM WITHOUT CAUSING THE ENTIRE ISSUE TO FLUCTUATE IN PRICE BUT THE GLOBAL STRUCTURE ALLOWS FOREIGN INVESTORS TO SELL THEM TO US INVESTORS SAYS MR SIEGELBAUM WHO WOULD BE HAPPY TO BUY THE BONDS THIS WOULD HELP ELIMINATE THE LIQUIDITY PROBLEM MR SIEGELBAUM SAYS THAT THE BOND IS LIKELY TO BE SOLD AT ABOUT 030 PERCENTAGE POINT OVER THE BENCHMARK 30YEAR US TREASURY BOND THE WORLD BANK SOLD 15 BILLION OF 10YEAR NOTES IN JULY AT A SPREAD OF 015 PERCENTAGE POINT OVER COMPARABLE TREASURY NOTES AN INTERNATIONAL MANAGEMENT GROUP OF EIGHT INVESTMENT DEALERS WILL MANAGE THE OFFERING CS FIRST BOSTON GROUP AND GOLDMAN SACHS & CO WILL SERVE AS JOINT LEAD MANAGERS THE OTHER MEMBERS OF THE MANAGEMENT TEAM ARE DEUTSCHE BANK CAPITAL MARKETS LTD IBJ INTERNATIONAL LTD LEHMAN BROTHERS MERRILL LYNCH & CO NOMURA SECURITIES AND SALOMON BROTHERS INC THE PROVINCE OF ONTARIO ALSO ANNOUNCED PLANS FOR A GLOBAL DOLLARDENOMINATED BOND ISSUE FOR SOMETIME IN THE NEAR FUTURE THOUGH NO DATE OR AMOUNT HAVE BEEN SET THE PLANNED ISSUE WILL BE THE PROVINCE'S THIRD US DOLLAR GLOBAL BOND OFFERING LEAD MANAGERS FOR THE TRANSACTION WILL BE GOLDMAN SACHS AND SALOMON BROTHERS TRADERS WERE HARDPRESSED TO CITE ANY SINGLE FUNDAMENTAL FACTOR BEHIND THE DAY'S PRICE GAINS SOCALLED RETAIL INVESTORS OR THOSE OUTSIDE THE WALL STREET DEALER COMMUNITY WERE LARGELY ABSENT THEY ADDED MOST ACTIVITY CAME FROM PROFESSIONAL TRADERS PUTTING MONEY TO WORK FOR FUND MANAGERS WITH SURPLUS CASH THERE WAS ALSO SOME DEMAND FROM FOREIGN INVESTORS ATTRACTED TO DOLLARDENOMINATED SECURITIES BECAUSE OF THE STRENGTHENING DOLLAR THOUGH THE LONG BOND ROSE SHARPLY INTERMEDIATETERM NOTES WERE ALSO NOTEWORTHY PERFORMERS BECAUSE OF HEAVIER VOLUME ACCORDING TO GOVPX INC AN INDUSTRY PRICE DISSEMINATION SERVICE THE FIVEYEAR TREASURY COUPON SHOWED AGGREGATE VOLUME OF 3722 BILLION IN CONTRAST VOLUME IN THE 30YEAR ISSUE WAS JUST 402 MILLION ACCORDING TO GOVPX BY LATE YESTERDAY THE FIVEYEAR NOTE HAD RISEN 1/2 POINT TO 100 12/32 FOR A YIELD OF 590 DOWN FROM 603 ON THURSDAY THE TWOYEAR NOTE ROSE LESS THAN 1/4 POINT TO 100 10/32 FOR A YIELD OF 444 DOWN FROM 456 THE TREASURY SOLD 2494 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION UP FROM 2482 AT LAST WEEK'S AUCTION THE THREEMONTH BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 315 DOWN FROM 322 AT LAST WEEK'S AUCTION THE SIXMONTH BILLS WERE SOLD AT AN AVERAGE DISCOUNT RATE OF 328 DOWN FROM 338 AT LAST WEEK'S AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JAN 7 THE 13WEEK BILLS MATURE APRIL 8 1993 AND THE 26WEEK BILLS MATURE JULY 8 1993 MUNICIPAL BONDS ROSE AS MUCH AS 1/2 POINT THE MARKET IS REACTING POSITIVELY TO THIS WEEK'S CALL OF MORE THAN 10 BILLION OF REDEEMABLE BONDS BUYERS ARE EXPECTED TO GOBBLE UP TAXFREE SECURITIES TO REPLACE THE CALLED ISSUES AND CUSHION THE EFFECTS OF MR CLINTON'S PLEDGE TO INCREASE TAXES ON HIGHER INCOMES THIS WEEK'S 3 BILLION NEW ISSUE CALENDAR HITS THE MARKET TODAY WITH THE LOS ANGELES DEPARTMENT OF WATER AND POWER'S 200 MILLION 1993 ELECTRIC PLANT REVENUE BONDS LEADING THE WAY THE SAN FRANCISCO CITY AND COUNTY AIRPORTS COMMISSION'S APPROXIMATELY 170 MILLION REFUNDING REVENUE BONDS WILL FOLLOW CLOSE BEHIND THOSE REFUNDING BONDS ARE DESIGNATED FOR THE SAN FRANCISCO AIRPORT BOTH TRANSACTIONS ARE BEING SOLD COMPETITIVELY THE DENVER CITY AND COUNTY AIRPORT REVENUE BONDS WERE UP 1/2 AT 95 7/896 YIELDING 710 THE CHICAGO METRO PIER & EXPO AUTHORITY REVENUE BONDS WERE UP 3/8 AT 100 1/8100 1/4 YIELDING 648 CURRENT PRODUCTION MORTGAGEBACKED SECURITIES RALLIED IN STEP WITH THE BENCHMARK 10YEAR TREASURY NOTE THE SUPPORT IN MORTGAGES WAS PARTLY DUE TO DEALERSFRESH FROM AN EXTENDED HOLIDAYSNAPPING UP COUPONS TO LATER PACKAGE INTO REAL ESTATE MORTGAGE INVESTMENT CONDUITS THE 7 1/2 MORTGAGE SECURITIES FOR JANUARY DELIVERY FROM ALL THREE AGENCIES WERE UP 23/32 LATE IN NEW YORK TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 1/2 WERE AT 100 19/32 FEDERAL HOME LOAN MORTGAGE 7 1/2 TRADED AT 100 21/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 1/2 CHANGED HANDS AT 100 15/32 THE 10YEAR TREASURY NOTE WAS UP 24/32 FREDDIE MAC RELEASED ITS REPORT OF PREPAYMENT ACTIVITY FROM MIDNOVEMBER TO MIDDECEMBER EARLY IN THE DAY THE DATA SHOWED THAT MORE SECURITIES PREPAID THAN HAD BEEN EXPECTED PREPAYMENT RATES ON FREDDIE MAC 8 AND 9 MORTGAGEBACKED SECURITIES DROPPED ONLY 12 FROM THE PREVIOUS PERIOD WHILE RATES ON 8 1/2 SECURITIES FELL 20 SOME IN THE MORTGAGE MARKET HAD LOOKED FOR PREPAYMENT RATES ON 8 AND 9 SECURITIES TO FALL 20 AND SPEEDS ON 8 1/2 SECURITIES TO DROP 30 SAYS RICHARD ELLSON MORTGAGE ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9301050136 930105 MARKETING & MEDIA VIEWERS FLOCK TO TELEVISION FOR 3 AMY FISHER SHOWS NEW YORK THE THREE MAJOR NETWORKS' RIVAL TELEVISION MOVIES ON THE AMY FISHER CASE TWO OF WHICH RAN HEADTOHEAD ON SUNDAY NIGHT APPARENTLY WEREN'T TOO MUCH OF A GOOD THING THE ABC NBC AND CBS NETWORKS SPENT A BUNDLE RUSHING PRODUCTION OF THE MADEFORTV MOVIES ON THE LONG ISLAND TEENAGER WHO SHOT THE WIFE OF HER ALLEGED LOVER VIEWERS COULDN'T GET ENOUGH OF IT NBC'S MOVIE AIRED FIRST ON DEC 28 AND WAS THE HIGHEST SINGLEPART MOVIE ON ANY NETWORK SO FAR THIS SEASON AVERAGING 191 OF THE COUNTRY'S 931 MILLION TVOWNING HOMES AND 30 OF THE AUDIENCE WATCHING TELEVISION AT THE TIME NBC ESTIMATED 41 MILLION PEOPLE SAW SOME OR ALL OF ITS MOVIE WHICH WAS BASED ON MS FISHER'S VERSION OF THE EVENT ABC'S TWOHOUR MOVIE WHICH AIRED SUNDAY NIGHT MAY TOP THE NBC MOVIE WHEN THE NATIONAL RATINGS ARE RELEASED TODAY PRELIMINARY RATINGS FROM 26 MAJOR CITIES GAVE ABC'S STORY WHICH WAS BASED ON NEWSPAPER ACCOUNTS OF THE SHOOTING 194 OF US HOMES AND A 29 SHARE OF THE NIGHT'S AUDIENCE CBS'S MOVIE BASED ON THE VERSION OF EVENTS SUPPLIED BY THE SHOOTING VICTIM MARY JO BUTTAFUOCO AND HER HUSBAND JOEY DREW 158 OF HOMES AND A 23 SHARE OF ALL VIEWERS 9301050135 930105 WHO'S NEWS PRICE WATERHOUSE PRICE WATERHOUSE NEW YORK DOMINIC DINAPOLI 37 YEARS OLD AND M FREDDIE REISS 45 WERE NAMED NATIONAL CODIRECTORS OF CORPORATE RECOVERY SERVICES AT THIS MAJOR ACCOUNTING AND CONSULTING FIRM MR DINAPOLI IS THE PARTNER IN CHARGE OF CORPORATE RECOVERY SERVICES FOR THE EAST COAST REGION BASED IN NEW YORK MR REISS IS THE PARTNER IN CHARGE OF REORGANIZATION AND BANKRUPTCY SERVICES FOR THE WEST COAST REGION BASED IN LOS ANGELES BOTH POSITIONS ARE NEWLY CREATED AS A RESULT OF A REORGANIZATION IN CORPORATE RECOVERY SERVICES WHICH INCLUDE ADVICE TO CREDITORS DEBTORS AND OTHER PARTICIPANTS IN CORPORATE REORGANIZATIONS AND DISSOLUTIONS AMONG OTHER ACTIVITIES 9301050134 930105 POLITICS & POLICY CLINTON SUGGESTION OF POSSIBLE CAPITAL GAINS TAX UPON DEATH STIRS IRE AMONG POWERFUL INTERESTS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TO THE TWO GREAT CERTAINTIES IN LIFE DEATH AND TAXES BILL CLINTON MAY SOON BE ABLE TO ADD A THIRD ANY ATTEMPT TO LINK THE TWO WILL GET A LOT OF PEOPLE ANGRY AT YOU MR CLINTON'S SUGGESTION THAT HE WILL CONSIDER PROPOSING TO TAX CAPITAL GAINS UPON A PERSON'S DEATH IS ALREADY STIRRING STRONG OPPOSITION FROM POWERFUL INTEREST GROUPS AND THE BREWING CONTROVERSY UNDERSCORES THE FUNDAMENTAL DIFFICULTY THE PRESIDENTELECT FACES IN ASSEMBLING HIS ECONOMIC PROGRAM ALMOST ANYTHING HE TRIES TO DO TO RAISE BADLY NEEDED FUNDS IS SURE TO INFURIATE SOMEBODY IMPORTANT UNDER CURRENT LAW THE AMOUNT A DECEASED PERSON'S PROPERTY HAS APPRECIATED ISN'T SUBJECT TO CAPITAL GAINS TAXES AND THE PERSON'S HEIRS HAVE TO PAY SUCH TAXES ONLY ON ANY APPRECIATION THAT OCCURS AFTER THE DATE OF DEATH IN AN INTERVIEW WITH THE WALL STREET JOURNAL A FEW WEEKS AGO MR CLINTON SAID HE PROBABLY WOULD LOOK AT ELIMINATING THIS PROVISION IN AN EFFORT TO ATTACK THE BULGING BUDGET DEFICIT ALTHOUGH HE DIDN'T OFFER ANY SPECIFICS ANY CLINTON PROPOSAL WOULD SURELY INCLUDE PROVISIONS TO SOFTEN THE IMPACT ON CERTAIN HARDHIT GROUPS PROPONENTS OF TAXING CAPITAL GAINS AT DEATH SAY THAT IT WOULD MAKE THE TAX SYSTEM FAIRER AND HELP FUEL THE ECONOMY BY REDUCING THE INCENTIVE FOR INVESTORS TO HANG ON TO THEIR ASSETS UNTIL THEY DIE THE LAW AS IT STANDS IS BOTH BAD ECONOMICS AND BAD SOCIAL POLICY SAYS CLINTON ADVISER ROBERT SHAPIRO OF THE PROGRESSIVE POLICY INSTITUTE WHO HAS DEVISED ONE PLAN FOR CHANGING THE SYSTEM IT'S ANOTHER PROVISION BY WHICH VERY WEALTHY PEOPLE CAN ESCAPE NORMAL TAX LIABILITY BUT IT'S WEALTHY INDIVIDUALS WHO TEND TO HAVE THE MOST INFLUENCE WITH CONGRESS EVEN MORE SIGNIFICANT TWO OF WASHINGTON'S STRONGEST LOBBIES SMALL BUSINESS PEOPLE AND FARMERS ARE ADAMANTLY OPPOSED THEY FEAR THAT IN ORDER TO PAY A MAXIMUM 28 CAPITALGAINS TAX IN ADDITION TO ALREADY HEFTY ESTATE TAXES WITH A TOP RATE OF 55 HEIRS WOULD HAVE NO CHOICE BUT TO LIQUIDATE THEIR PROPERTY TAXING CAPITAL GAINS AT DEATH WOULD BE DEVASTATING SAYS DJ GRIBBIN A TAX LOBBYIST AT THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS HUNDREDS OF THOUSANDS OF MOMANDPOP CONCERNS IT'S ALREADY EXTREMELY DIFFICULT TO PASS ON A SMALL BUSINESS FROM ONE GENERATION TO THE NEXT THIS WOULD MAKE IT IMPOSSIBLE THIS IS HARDLY THE FIRST TIME THE GOVERNMENT HAS THOUGHT ABOUT TAXING GAINS AT DEATH THE TAX REFORM ACT OF 1976 ACTUALLY INCLUDED A FORM OF THE TAX BUT THAT PROVISION WAS POSTPONED IN 1978 AND REPEALED IN 1980 BEFORE EVER TAKING EFFECT LAWMAKERS ARGUED AT THAT TIME THAT THE PLAN WOULD CREATE ENORMOUS ADMINISTRATIVE HEADACHES WHAT'S SPURRING RECONSIDERATION OF THE IDEA NOW IS MR CLINTON'S NEED TO FIND A LOT OF MONEY TO PAY FOR HIS PROMISES OF NEW INFRASTRUCTURE SPENDING AND EXPANDED HEALTHCARE COVERAGE ALL WHILE HALVING THE DEFICIT IN FOUR YEARS ACCORDING TO THE TREASURY DEPARTMENT THE EXCLUSION OF CAPITAL GAINS AT DEATH WILL MEAN MORE THAN 28 BILLION IN LOST REVENUE FOR THE FEDERAL GOVERNMENT IN 1993 ALONE THE CONGRESSIONAL BUDGET OFFICE FIGURES THAT OVERHAULING THE LAW COULD PRODUCE AS MUCH AS 17 BILLION OVER FIVE YEARS OTHER ESTIMATES ARE EVEN HIGHER THE UNDERLYING PHILOSOPHY OF THE TAX CODE IS THAT YOU TAX INCOME FROM WHATEVER SOURCE SAYS DON PEASE A RETIRING DEMOCRATIC CONGRESSMAN FROM OHIO MR PEASE USED TO WALK AROUND CAPITOL HILL WITH A LIST OF POTENTIAL REVENUERAISERS IN HIS POCKET INCLUDING TAXING CAPITAL GAINS AT DEATH IT DOESN'T MAKE SENSE TO LET A SUBSTANTIAL AMOUNT OF INCOME GO UNTAXED ALTOGETHER HE SAYS IF IT WALKS AND TALKS LIKE INCOME THEN IT IS INCOME AND IT SHOULD BE TAXED THERE ARE BASICALLY THREE WAYS BY WHICH GAINS HELD UNTIL DEATH COULD BE TAXED THE FIRST WOULD BE TO INCLUDE THE APPRECIATION OF ASSETS AS INCOME ON THE FINAL TAX RETURN OF THE PERSON WHO HAS DIED UNDER MANY SUCH PLANS GAINS ON PROPERTY INHERITED DIRECTLY BY A SPOUSE WOULD NOT BE TAXED NEITHER WOULD THOSE ON ASSETS DONATED TO CHARITY STILL THE MAIN FLAW WITH THIS ARRANGEMENT IS THAT THE FAMILY OF THE DECEASED MIGHT BE FORCED TO SELL ASSETS TO PAY THE TAX THE SECOND OPTION WOULD BE TO LEVY AN EXTRA ESTATE TAX ON ANY GAINS HELD AT DEATH BUT THE TROUBLE WITH THIS METHOD ACCORDING TO A CONGRESSIONAL BUDGET OFFICE ANALYSIS IS THAT THE GAINS TAX COULD THEN BE OFFSET WITH CREDITS ALLOWED UNDER ESTATETAX REGULATIONS AND WOULD THEREFORE RAISE RELATIVELY LITTLE MONEY A THIRD OPTION WOULD BE TO CARRY OVER THE BASIS IN THE DECEASED'S ASSET AND THEN TAX THE GAIN WHEN THE ASSET IS SOLD BY THE HEIRS THE BASIS IS DEFINED AS THE INITIAL COST OF THE ITEM PLUS THE COST OF ANY SUBSEQUENT IMPROVEMENTS MINUS DEPRECIATION THIS APPROACH WOULDN'T FORCE THE HEIRS TO SELL ANY PROPERTY BEFORE THEY WANT TO BUT IT COULD BE EXTREMELY DIFFICULT TO DETERMINE THE CORRECT BASIS ON A LONGHELD ASSET ESPECIALLY WHEN IT HAS BEEN PASSED ON TO A DESCENDANT MOREOVER THE APPROACH WOULD CREATE EVEN MORE OF AN INCENTIVE TO HOLD AN ASSET YOU'D HAVE AN EVEN LARGER LOCKIN PROBLEM THAN YOU DO NOW SAYS STEPHEN ENTIN A RESIDENT SCHOLAR AT THE INSTITUTE FOR RESEARCH ON THE ECONOMICS OF TAXATION MR ENTIN ALSO NOTES THAT MR CLINTON HAS COME OUT AGAINST REDUCING THE SUM THAT PEOPLE CAN GIVE NOW OR LEAVE TO FAMILY MEMBERS AT THEIR DEATH WITHOUT TRIGGERING ESTATE TAXES TAXING CAPITAL GAINS AT DEATH HE ASSERTS WOULD BE TOTALLY INCONSISTENT WITH THAT POSITION POLITICAL OBSERVERS AGREE THAT IF MR CLINTON PURSUES ANY INITIATIVE IN THIS AREA THE ONLY WAY HE COULD SELL IT IS TO MAKE IT PART OF A MUCH BROADER ECONOMIC PACKAGE ALSO CRUCIAL IS DETERMINING WHAT THE EFFECTIVE DATE OF ANY SUCH PROPOSAL WOULD BE AND WHAT KIND OF TRANSITION RELIEF SHOULD BE PROVIDED IN ADDITION ADJUSTMENTS TO THE TAX SYSTEM WOULD HAVE TO BE MADE SO THAT THE TOTAL INCOME TAX AND ESTATETAX BURDEN WOULD BE THE SAME REGARDLESS OF WHETHER THE PROPERTY IS SOLD BEFORE OR AFTER DEATH BUT PROBABLY THE BEST WAY TO MAKE TAXING CAPITAL GAINS AT DEATH MORE POLITICALLY PALATABLE WOULD BE TO ALLOW CERTAIN GROUPS TO DEFER PAYING THE TAX OR BE EXEMPT FROM IT ALTOGETHER FOR EXAMPLE MR SHAPIRO'S PLAN WOULD SHIELD FARMS AND SMALL BUSINESSES FROM THE TAX AND EXEMPT ASSETS WILLED TO A SPOUSE OR DONATED TO CHARITY IT ALSO WOULD GIVE A GENERAL EXEMPTION FOR THE FIRST 75000 IN CAPITAL GAINS AND FOR UP TO 125000 OF THE CAPITAL GAINS FROM THE SALE OF A PRINCIPAL RESIDENCE THE UPSHOT HE SAYS IS THAT 90 OF ALL TAXPAYERS WOULD CONTINUE TO BE PROTECTED EVERYONE BUT VERY AFFLUENT PEOPLE WHILE STILL RAISING 4 BILLION TO 5 BILLION ANNUALLY BUT EVEN IF THESE LIMITED PARAMETERS WERE PURSUED THE CLINTON TEAM WOULD STILL BE SURE TO HAVE A FIGHT ON ITS HANDS IF THE FARMERS ESCAPED WE'D STILL BE OPPOSED SAYS HYDE MURRAY DIRECTOR OF GOVERNMENTAL RELATIONS FOR THE AMERICAN FARM BUREAU FEDERATION IT WOULD SET IN MOTION A BAD PRACTICE AND IT WOULD STILL BE A FOOT IN THE DOOR 9301050133 930105 WESTLB RECEIVES APPROVAL TO INTEGRATE HOUSING AUTHORITY SPECIAL TO THE WALL STREET JOURNAL FRANKFURT IN ONE OF THE LARGEST CAPITAL INCREASES FOR A GERMAN BANK WESTDEUTSCHE LANDESBANK GIROZENTRALE SAID IT WON FINAL APPROVAL TO INTEGRATE A HOUSINGLOAN AUTHORITY THE MOVE EFFECTIVELY INCREASES WESTLB'S TOTAL CAPITAL TO ABOUT 92 BILLION MARKS 57 BILLION FROM ABOUT FIVE BILLION MARKS PREVIOUSLY ALTHOUGH TECHNICALLY THE MOVE INCREASES THE BANK'S TOTAL ASSETS THE INCORPORATION DOESN'T INVOLVE A FRESH CAPITAL INJECTION IN THE SENSE OF MOST CAPITAL INCREASES WESTLB HAS INTEGRATED A LOAN AGENCY CALLED HOUSING CONSTRUCTION PROMOTION AGENCY THAT PROMOTES PRIVATESECTOR HOUSING UNDER A 1991 STATE LAW FROM THE FEDERAL STATE OF NORTH RHINEWESTPHALIA THE AGENCY WAS TO BE INCORPORATED AS A DIVISION OF WESTLB EFFECTIVE JAN 1 1992 THE BANK HAD TO WAIT A YEAR UNTIL DEC 30 1992 FOR FORMAL APPROVAL FROM THE FEDERAL BANKING SUPERVISION OFFICE THE INCORPORATION OF A NEW LENDING DIVISION SHOULD INCREASE WESTLB'S LENDING OPERATIONS A BANK SPOKESMAN SAID IT ALSO INSURES THAT THE BANK MEETS NEW AND STIFFER CAPITAL ADEQUACY RULES UNDER THE EUROPEAN COMMUNITY'S 1993 SINGLE MARKET PROGRAM THE NEW GUIDELINES HAVE A GRACE PERIOD FOR COMPLIANCE BUT WESTLB SAYS THE INCORPORATION MEANS THE BANK CAN MEET THE GOALS WITHOUT A WAITING PERIOD WESTLB IS GERMANY'S THIRDLARGEST BANKING GROUP BY ASSETS BEHIND DEUTSCHE BANK AG AND DRESDNER BANK AG WESTLB IS MAJORITY OWNED BY NORTH RHINEWESTPHALIA WITH OTHER STAKES HELD BY LOCAL MUNICIPALITIES AND SAVINGS ASSOCIATIONS 9301050132 930105 MANCUSO GROUP ACQUIRES FIRM MONTREAL AN INVESTOR GROUP LED BY MANCUSO & CO A NEW YORK INVESTMENT COMPANY BOUGHT KARHU CANADA INC FOR 108 MILLION CANADIAN DOLLARS US85 MILLION FROM ASKO OY GROUP OF FINLAND AND KARHU CANADA MANAGEMENT KARHU CANADA WHICH MAKES ICEHOCKEY EQUIPMENT HIKING BOOTS AND CROSSCOUNTRY SKIS HAD ABOUT C110 MILLION IN WORLDWIDE REVENUE LAST YEAR THE MONTREAL COMPANY HAS SUBSIDIARIES IN THE US SWEDEN GERMANY THE UNITED KINGDOM AND FINLAND ASKO OY HELD 84 OF KARHU CANADA AND THE REST WAS HELD BY KARHU CANADA MANAGEMENT 9301050131 930105 INTERNATIONAL WARSCARRED ECONOMY MIRES CAMBODIA BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA IN THE LATE 1970S THE KHMER ROUGE BRUTALLY DESTROYED CAMBODIA'S SOCIAL AND ECONOMIC ORDER AND MILLIONS OF CAMBODIANS AS A PRELUDE TO CREATING WHAT THEY EXPECTED TO BE A MARXIST UTOPIA CAMBODIA'S ECONOMY HAS CLAWED ITS WAY BACK FROM THE WRECKAGE OF THAT HORRIFIC EXPERIMENT SINCE VIETNAMESE TROOPS OUSTED THE RADICAL KHMER ROUGE IN EARLY 1979 STILL A LINGERING CIVIL WAR HAS KEPT MUCH OF THE COUNTRY A POOR AGRARIAN BACKWATER MEN AND WOMEN WORK THE RICE FIELDS WITH WATER BUFFALO OR CATTLE PETTY COMMERCE FLOURISHES IN CITIES AND TOWNS BUT FEW CAMBODIANS MANUFACTURE ANYTHING TO SELL FREIGHTERS BEARING IMPORTS ONCE AGAIN MOOR IN THE TONLE SAP RIVER BUT THE SHIPS HAVE LITTLE TO TAKE AWAY LIFTING THE CAMBODIAN ECONOMY INTO THE 1990S IS A TASK ALMOST AS DAUNTING AS THE RESTORATION OF POLITICAL PEACE THOUGH INTERNATIONAL DONORS HAVE PROMISED 880 MILLION IN RECONSTRUCTION AID OVER THE NEXT FEW YEARS EXPERTS SAY CAMBODIA FACES SUCH SEVERE PROBLEMS THAT IT'S UNCERTAIN IT CAN ABSORB THE FUNDS WORSE STILL THE REFUSAL OF THE STILLPOTENT KHMER ROUGE TO JOIN A GENERAL DISARMAMENT OR OPEN THE TERRITORY IT CONTROLS TO UNITED NATIONS PEACEKEEPERS IN COMPLIANCE WITH AN INTERNATIONALLY BROKERED CAMBODIAN PEACE ACCORD COULD DOOM A RECOVERY BY SCARING OFF DONORS AND INVESTORS RENEWED FIGHTING COULD JEOPARDIZE PLANS FOR A UNORGANIZED NATIONAL ELECTION THIS YEAR THE IMMEDIATE CHALLENGE IS THE ACUTE FINANCIAL CRISIS THAT THREATENS TO UNDERMINE WHAT IS LEFT OF PREMIER HUN SEN'S ADMINISTRATION BEFORE A UNSUPERVISED REHABILITATION EFFORT CAN TAKE HOLD BUT THE KHMER ROUGE ARGUES THAT ANY UN ASSISTANCE THAT HELPS THE CURRENT REGIME WHICH WAS INSTALLED WITH VIETNAMESE BACKING WILL VIOLATE THE PEACE ACCORD REACHED BY CAMBODIA'S FOUR MAIN POLITICAL FACTIONS 13 MONTHS AGO THE ECONOMIC PROBLEM IS SERIOUS BECAUSE OF THE LINKAGE TO THE POLITICAL PROBLEM SAYS A WESTERN DIPLOMAT WHO LIKE A NUMBER OF POLITICAL ANALYSTS CONTENDS THAT THE KHMER ROUGE WANTS TO FAN POPULAR RESENTMENT AGAINST THE HUN SEN REGIME AND THE UN FOR CAMBODIA'S ECONOMIC WOES THE KHMER ROUGE IS TRYING TO DESTABILIZE THE ECONOMY HE SAYS THE FINANCIAL CRUNCH STEMS FROM CAMBODIA'S SHIFT FROM A PLANNED ECONOMY TO A FREEMARKET SYSTEM AND FROM THE ABRUPT END OF SOVIETBLOC AID IN 1990 REFORMS UNLEASHED CAMBODIA'S TINY PRIVATE SECTOR SPARKING A MINIBOOM IN THE CAPITAL PHNOM PENH AND OTHER CITIES BUT AS THE STATERUN ECONOMY DISAPPEARED SO DID GOVERNMENT REVENUES SIMPLY PUT THE HUN SEN GOVERNMENT IS BROKE SO EVEN THOUGH CAMBODIA'S AGRICULTUREBASED ECONOMY IS GROWING STATE SPENDING TO BUILD OR REPAIR INFRASTRUCTURE AND TO DELIVER SOCIAL SERVICES HAS ALL BUT STOPPED SINCE 1991 INSTEAD PHNOM PENH HAS DIVERTED ITS DWINDLING RESOURCES TO TRY TO PAY A BLOATED CIVIL SERVICE AND MEET DEFENSE NEEDS TO MAKE UP LOST REVENUE THE HUN SEN GOVERNMENT HAS RESORTED TO PRINTING MONEY BALES OF WHICH ARRIVE ON REGULAR CHARTER FLIGHTS FROM RUSSIA NOT SURPRISINGLY ECONOMISTS SAY PRICES SOARED BY 150200 IN 1992 AFTER RISING 120 THE YEAR BEFORE MANY BUREAUCRATS TEACHERS AND HEALTH WORKERS CUT OFFICIAL DUTIES TO WORK AT OTHER JOBS OTHER OFFICIALS DEMAND PAYOFFS TO PROVIDE SERVICES SUCH AS WATER AND ELECTRICITY EVEN MAIL SIGNS OF DECAY ARE PLENTIFUL PHNOM PENH WITH A POPULATION OF 700000 TO 800000 HAS ONLY A FEW OFTENINOPERABLE TRAFFIC LIGHTS TO IMPOSE ORDER ON ITS CHAOTIC TRAFFIC IN THE COUNTRYSIDE MOST MAIN HIGHWAYS ARE PARTLY UNPAVED AND BADLY CRATERED RAMSHACKLE BRIDGES ARE OFTEN COBBLED TOGETHER WITH SCRAPS OF WOOD AND POSE A CONSTANT THREAT TO COMMERCIAL TRAFFIC A FEW TRAINS STILL RUN BUT 25 OF THE STATEOWNED RAILWAYS STAFF ARE SECURITY GUARDS AND LOCOMOTIVES CAN'T TRAVEL OVER 16 MILES AN HOUR BECAUSE OF DAMAGED ROADBEDS RIVERS ONCE IMPORTANT COMMERCIAL ARTERIES ARE CLOGGED BY YEARS OF UNDREDGED SILT AGED POWER PLANTS REGULARLY BREAK DOWN DISRUPTING ELECTRICITY AND FORCING BUSINESSES AND OTHERS WITH THE MEANS TO DO SO TO BUY GENERATORS ONLY ABOUT 20 OF PHNOM PENH'S POPULATION HAS ACCESS TO PIPED WATER FROM ANTIQUATED TREATMENT PLANTS AND A LEAKY DISTRIBUTION SYSTEM GARBAGE IS COLLECTED ON AN AD HOC BASIS OR NOT AT ALL ADDING TO THE ARRAY OF HEALTH HAZARDS WITH THE RATIO OF DOCTORS AND NURSES TO THE POPULATION AMONG THE LOWEST IN SOUTHEAST ASIA LIFE EXPECTANCY IS 497 YEARS THE LOWEST IN ASIA MALARIA AND TUBERCULOSIS ARE RAMPANT WHILE INFANT MORTALITY IS AMONG THE WORLD'S HIGHEST TO BE SURE SOME INVESTMENT HAS RETURNED SINCE REFORMS BEGAN IN 1989 AND BUSINESS HAS GAINED MOMENTUM WITH THE ARRIVAL OF THE 22000STRONG UN PEACEKEEPING MISSION LAST YEAR BUT MOST COMMITMENTS ARE TO SMALL QUICKRETURN VENTURES MAINLY IN THE SERVICE SECTOR IN PHNOM PENH A FEW FOREIGN INVESTORS MAINLY ASIANS AND ETHNICCHINESE CAMBODIANS ARE REFURBISHING OR BUILDING HOTELS VILLAS AND RESTAURANTS TO CATER TO THE CITY'S OUTSIZED INTERNATIONAL COMMUNITY AND THE SMALL CAMBODIAN ELITE A FEW INVESTORS ARE PUTTING MONEY INTO MANUFACTURING VENTURES SUCH AS TEXTILES AND FOODPROCESSING BUT THEY DON'T AMOUNT TO MUCH PREDICTABLY SECURITY FEARS ARE A MAJOR OBSTACLE FOR FOREIGN AND LOCAL INVESTORS JAPANESE BUSINESS FOR EXAMPLE IS REPRESENTED MAINLY THROUGH IMPORT AGENCIES ALL THIS MEANS CAMBODIA MUST RELY ON FARMING AND NATURAL RESOURCES FOR ECONOMIC GROWTH FORTUNATELY AGRICULTURE IS A BRIGHT SPOT BECAUSE THE HUN SEN REGIME'S EARLIEST REFORMS INCLUDED DISTRIBUTING LAND TO FARMERS CROP PRODUCTION HAS CLIMBED DESPITE LIMITED STATE SUPPORT FOR FERTILIZER POOR TRANSPORTATION AND MINEFIELDS THAT RENDER LARGE AREAS UNFARMABLE ECONOMISTS ALSO HOPE NATURAL RESOURCES CAMBODIA HAS LARGE FOREST RESERVES AS WELL AS OFFSHORE OIL AND GAS POTENTIAL MIGHT PROVIDE A LIFT TOURISM ALSO HAS POTENTIAL WITH THE ANGKOR WAT TEMPLE COMPLEX AS THE MAIN DRAW 9301050130 930105 WHO'S NEWS DIED DIED GUY WARREN BOTTS 78 YEARS OLD PRESIDENT AND THEN CHAIRMAN OF BARNETT BANKS OF FLORIDA INC FROM 1963 TO 1984 IN JACKSONVILLE FLA ON JAN 1 9301050129 930105 INTERNATIONAL VOLKSBANK SUSPENDS STOCK PENDING AN ANNOUNCEMENT SPECIAL TO THE WALL STREET JOURNAL ZURICH SWITZERLAND SWISS VOLKSBANK STARTLED SWITZERLAND'S STOCK EXCHANGES ON THE FIRST TRADING DAY OF THE YEAR BY SUSPENDING ITS STOCK UNTIL TOMORROW PENDING WHAT THE BANK SAID WOULD BE A POSITIVE ANNOUNCEMENT ALTHOUGH SWITZERLAND'S FIFTHLARGEST BANK HAS BEEN THE SUBJECT OF SPECULATION FOR SOME TIME NO BIG CHANGE HAD BEEN EXPECTED UNTIL VOLKSBANK'S ANNUAL MEETING MARCH 26 SHAREHOLDERS AT THE MEETING WILL BE ASKED TO APPROVE A CAPITAL RESTRUCTURING THAT WILL TRANSFORM THE BANK FROM A COOPERATIVE INTO A PUBLIC LIMITED COMPANY THE NEW SHARE STRUCTURE WOULD MAKE POSSIBLE A PARTNERSHIP WITH ANOTHER FINANCIAL INSTITUTION SPECULATION ON THE TRADING SUSPENSION CENTERED ON THREE POSSIBILITIES THE ACQUISITION OF A MAJOR STAKE IN VOLKSBANK BY A FOREIGN OR SWISS BANK ACQUISITION OF A STAKE BY A SWISS INSURANCE COMPANY OR AN ALLIANCE BETWEEN VOLKSBANK AND A NUMBER OF REGIONAL BANKS FINANCIAL ANALYSTS SUGGESTED THAT VOLKSBANK IS BEING FORCED TO MAKE AN ANNOUNCEMENT PREMATURELY AFTER ITS STOCK STARTED CLIMBING IN DECEMBER COOPERATIVE VOLKSBANK SHARES STARTED THE MONTH AT 650 SWISS FRANCS 443 AND CLOSED DEC 30 AT 720 FRANCS VOLKSBANK'S 1991 NET INCOME FELL TO 684 MILLION SWISS FRANCS FROM 1108 MILLION FRANCS A YEAR EARLIER THE BANK HAS BEEN HIT BY SWITZERLAND'S RECESSION AND REAL ESTATE CRISIS 9301050128 930105 MARKETING & MEDIA TOYS R' US SAYS HOLIDAY SALES ROSE BUT STOCK FALLS 4 BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL TOYS R US INC REPORTED ROBUST US SALES FOR THE HOLIDAY SEASON BUT ITS STOCK DROPPED 4 AMID SOME CONCERN THAT THE STRENGTHENING DOLLAR IS HURTING INTERNATIONAL SALES THE NATION'S LARGEST TOY RETAILER POSTED SALES OF 296 BILLION FOR THE EIGHT WEEKS ENDED DEC 26 A 19 INCREASE FROM THE 25 BILLION RECORDED A YEAR EARLIER ESPECIALLY POSITIVE THE COMPANY SAID WAS A 107 RISE IN US COMPARABLESTORE SALES FOR THE HOLIDAY SEASON FROM LAST YEAR'S PERIOD WHICH EXCEEDED WALL STREET ESTIMATES OF A 4 TO 7 INCREASE NONETHELESS GARY BALTER AN ANALYST WITH DONALDSON LUFKIN & JENRETTE LOWERED HIS RATING ON THE COMPANY'S STOCK TO MARKET PERFORMER FROM MODERATELY ATTRACTIVE ACCORDING TO DOW JONES NEWS SERVICE TOYS R US OFFICIALS SAID MR BALTER STRESSED THAT THE STRONG DOLLAR WOULD SLOW THE COMPANY'S OVERSEAS SALES GROWTH IN THE COMING YEAR MR BALTER DIDN'T RETURN CALLS SEEKING COMMENT AFTER INITIALLY RISING TOYS R US STOCK CLOSED AT 3850 DOWN 1625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TOYS R US VICE CHAIRMAN MICHAEL GOLDSTEIN SAID OVERSEAS SALES WOULD HAVE BEEN 45 MILLION HIGHER ADDING ABOUT 3 TO THE COMPANY'S OVERALL COMPARABLE SALES IF THE DOLLAR HAD BEEN AT LAST YEAR'S LEVEL THE STRONG DOLLAR HURT US HE SAID BUT OVER TIME THE CURRENCY ISSUE EVENS OUT INDEED SOME ANALYSTS FOCUSED ON THE US COMPARABLESTORE SALES FIGURE WHICH REPRESENTS SALES AT STORES OPEN AT LEAST A YEAR THAT 107 INCREASE IS REALLY A SPECTACULAR NUMBER SAID ROBERT J SCHWEICH AN ANALYST WITH WERTHEIM SCHRODER & CO IT SHOWS THAT THE COMPANY HAS THRIVED WHILE ITS COMPETITORS HAVE DISAPPEARED AND PICKED UP MARKET SHARE MOST NOTABLY MR SCHWEICH SAID TOYS R US HAS BENEFITED FROM THE DEMISE OF CHILD WORLD INC WHICH HAD 150 STORES OPERATING DURING THE 1991 CHISTMAS SEASON THAT HAVE SINCE CLOSED TOYS R US WHICH ENDS ITS FISCAL YEAR ON FEB 1 SAID YEARTODATE SALES WERE 673 BILLION UP 17 FROM 576 BILLION A YEAR EARLIER MR GOLDSTEIN SAID SALES WERE BOOSTED BY STRONGERTHANEXPECTED CHRISTMAS SALES OF VIDEO GAMES WHICH DID NOT SELL VERY WELL LAST CHRISTMAS ALSO MOVING BRISKLY WERE ACTION FIGURES HE SAID ESPECIALLY TYCO TOYS INC'S CRASH DUMMIES AND HASBRO INC'S BATMAN LINE WHILE COMPARABLESTORE CHRISTMAS SALES IN CANADA GERMANY AND FRANCE ROSE ABOUT 10 FROM LAST YEAR MR GOLDSTEIN SAID THAT INCREASE WAS PARTIALLY OFFSET BY FLAT SALES IN ENGLAND AND SPAIN WHERE WEAK ECONOMIES HURT SALES IN ADDITION US COMPARABLESTORE SALES WERE DRAGGED DOWN BY FLAT SALES IN CALIFORNIA MR GOLDSTEIN ADDED THAT TOYS R US INTENDS TO SPEND ABOUT 200 MILLION IN 1993 TO OPEN AT LEAST 50 STORES OVERSEAS INCLUDING THE COMPANY'S FIRST STORES IN BELGIUM THE NETHERLANDS PORTUGAL AND SWITZERLAND THE PARAMUS NJ COMPANY SAID IT ALSO PLANS TO OPEN ABOUT 40 US TOY STORES IN 1993 AND 10 NEW STORES IN ITS KIDS R US CHAIN WHICH SELLS CHILDREN'S CLOTHING TOYS R US CURRENTLY OPERATES 540 TOY STORES IN THE US AND 167 IN OTHER COUNTRIES ITS 212 KIDS R US CLOTHING STORES ARE ALL IN THE US 9301050127 930105 INTERNATIONAL RUSSIAN PLANT WEANS ITSELF FROM MILITARY CONSUMER GOODS AIRLINERS SPELL SUCCESS FOR SARATOV BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL SARATOV RUSSIA IN RUSSIA'S CONSERVATIVE MILITARYINDUSTRIAL COMPLEX ALEXANDER YERMISHIN STANDS OUT AS AN EXAMPLE OF A NEW GENERATION YERMISHIN 44 YEARS OLD RUNS THE SARATOV AVIATION PLANT A FORMER DEFENSE FACTORY ON THE VOLGA RIVER THAT WAS NEAR BANKRUPTCY WHEN HE TOOK OVER IN 1987 MOST RUSSIAN INDUSTRY STILL DEPENDS ON STATE ORDERS AND CREDITS BUT MR YERMISHIN'S COMPANY IS A RARITY SINCE 1991 IT HAS BEEN OWNED BY ITS EMPLOYEES ONLY TWO OTHERS OF COMPARABLE SIZE ARE ALSO PRIVATE AND SARATOV'S RESULTS DEFY THE NATION'S DOWNWARD ECONOMIC TRENDS OVERALL PRODUCTION IN RUSSIA DECLINED 20 LAST YEAR BUT PRODUCTION OF AIRPLANES AND CONSUMER GOODS AT SARATOV IS UP 30 WHILE PROFITS ARE RUNNING 50 ABOVE A YEAR EARLIER MR YERMISHIN'S PLANS ARE AMBITIOUS HE JUST ADDED 2000 PEOPLE TO HIS 13000 PERSON WORK FORCE HE EXPORTS HALF HIS 127SEAT PASSENGER AIRLINERS CALLED THE YAK42 TO CHINA AND CUBA NEGOTIATIONS FOR SALES TO ISRAEL ARE UNDER WAY IN A GAMBLE HE PLANS BY 1995 TO HAVE RETOOLED HIS PRODUCTION LINES TO MEET US FEDERAL AVIATION ADMINISTRATION STANDARDS SO HE CAN SELL PLANES IN THE WEST A TALL MAN WITH GRAYING DARK HAIR BROWN EYES AND A DEEP VOICE THAT COMMANDS ATTENTION MR YERMISHIN HAS ACHIEVED HIS IMPRESSIVE RESULTS WITH RADICAL SURVIVAL TECHNIQUES AND A DEEPSEATED BELIEF THAT ANYTHING IS POSSIBLE IT'S A COUNTRY OF MIRACLES MR YERMISHIN IS FOND OF TELLING VISITORS THERE ARE 1200 WAYS TO MAKE MONEY IN THIS ECONOMY AND WE'VE USED ALL OF THEM SARATOV HAS EMERGED FROM A MILITARY INDUSTRIAL COMPLEX THAT IS THE BIGGEST CHALLENGE FACING RUSSIAN PRESIDENT BORIS YELTSIN UNTIL LAST YEAR IT ACCOUNTED FOR MORE THAN HALF OF ALL RUSSIAN PRODUCTION MR YELTSIN IS TRYING TO CONVERT THESE FACTORIES TO CIVILIAN PRODUCTION BUT LIKE OTHER FACTORY BOSSES THEY ARE DEMANDING CONTINUED SUBSIDIES FROM THE GOVERNMENT WHICH CAN'T AFFORD THEM ANY MORE TO ANDRE KOKOSHIN RUSSIA'S DEPUTY DEFENSE MINISTER WHO IS IN CHARGE OF THE CONVERSION TO CIVILIAN PRODUCTION MR YERMISHIN IS A MODEL MR YERMISHIN IS A REAL RUSSIAN CAPITALIST WHO WILL SOMEDAY SOON BE IN THE WESTERN MARKETS HE SAYS HE'S NOT AFRAID OF ANYTHING IN RUSSIA MR YERMISHIN IS SO RESPECTED THAT HIS NAME WAS MENTIONED LAST MONTH AS A CANDIDATE FOR PRIME MINISTER HE HAS LECTURED AT STANFORD UNIVERSITY ON THE EFFORTS OF RUSSIA'S DEFENSE INDUSTRIES TO CONVERT TO CIVILIAN GOODS STANFORD AND THE CARNEGIE FOUNDATION ARE STUDYING HIS FACTORY AS A MODEL HE'S A RAY OF HOPE SAYS WILLIAM PERRY CODIRECTOR OF THE CENTER FOR INTERNATIONAL SECURITY AND ARMS CONTROL AT STANFORD AND FORMER UNDERSECRETARY OF DEFENSE UNDER PRESIDENT CARTER ON THE WORLD MARKET THAT HE ASPIRES TO JOIN MR YERMISHIN FACES THE SAME PROBLEMS THAT ALL OF RUSSIAN INDUSTRY DOES HIS PLANES THOUGH THEY HAVE ADMIRABLE SAFETY RECORDS ARE TECHNOLOGICALLY 20 YEARS BEHIND THE WEST AND THE WORLD MARKET FOR AIRPLANES IS IN A DEEP RECESSION SO FAR THE MAIN APPEAL OF THE YAK42 IS ITS PRICE ABOUT HALF THAT OF AN EQUIVALENTSIZE PLANE BY BOEING ANOTHER PROBLEM IS MARKETING MR YERMISHIN DOESN'T HAVE THE HARD CURRENCY TO TRAVEL OVERSEAS TO WOO CUSTOMERS LES BLATTNER PRESIDENT OF AVIATION COMMUNICATIONS INC A SMALL CONSULTING FIRM IN SILVER SPRING MD THAT DID SOME MARKETING WORK FOR SARATOV LAST YEAR QUIT AFTER SIX MONTHS BECAUSE SARATOV'S OFFER TO PAY HIM A COMMISSION ON SALES WAS TOO RISKY WHAT THEY'VE DONE IS PHENOMENAL BUT WHO CARES SAYS MR BLATTNER IF THEY CAN STAY IN BUSINESS FIVE YEARS AND RETOOL THEY CAN COMPETE BUT IT'S A VERY DIFFICULT MARKET MR YERMISHIN IS MORE OPTIMISTIC HE IS SO CONFIDENT THAT HE HASN'T FORMED A JOINT PARTNERSHIP WITH A WESTERN INVESTOR THAT COULD PROVIDE BADLY NEEDED CAPITAL AS MR YERMISHIN SEES IT SARATOV IS STILL TOO WEAK TO MAINTAIN AN EQUAL RELATIONSHIP AND HE DOESN'T WANT THE COMPANY BEING SWALLOWED UP BY A BIGGER PARTNER HE IS KEEPING SARATOV A CLOSED JOINT STOCK COMPANY FOR THE TIME BEING WE ARE NOT BEGGARS MR YERMISHIN EXPLAINS WE DON'T NEED ANY HUMANITARIAN AID WE WILL DO THIS ON OUR OWN AND THIS WILL BE A RUSSIAN COMPANY MR YERMISHIN TOOK HIS FIRST STEP TOWARD INDEPENDENCE IN 1988 WHEN HE BEGAN TO PRIVATIZE LONG BEFORE IT WAS AN ACCEPTED GOVERNMENT GOAL AT ONE POINT MR YERMISHIN WAS BLACKLISTED AS AN UPSTART BY A MILITARY INDUSTRIAL COMMITTEE THAT SCRATCHED HIS NAME OFF A LIST OF FACTORY DIRECTORS SCHEDULED TO TRAVEL TO THE US INSTEAD GENNADY KOTCHETKOV A FRIEND AT THE USACANADA INSTITUTE A MOSCOW THINK TANK TOOK MR YERMISHIN ON A PRIVATE TOUR OF THE US THERE MR YERMISHIN WAS IMPRESSED WITH HOW ORGANIZED EVERYTHING SEEMED TO BE THE TWO MEN VISITED BOEING CORP AND MCDONNELL DOUGLAS CORP AMONG OTHERS HE SAYS HE WAS DUMBFOUNDED BY THE CLEANLINESS AND HIGHLY MECHANIZED PRODUCTION OF BOEING'S ASSEMBLY LINES MR YERMISHIN CAME BACK TO SARATOV CONVINCED THAT HIS COMPANY COULD COMPETE FOLLOWING LESSONS LEARNED FROM US COMPANIES MR YERMISHIN SET UP 30 OF THE PLANT'S ENGINEERS WHO WERE ABOUT TO BE LAID OFF IN SUBSIDIARIES MAKING CONSUMER GOODS SUCH AS TEA POTS AND BICYCLES AS A RESULT DEFENSE WORK AT THE PLANT HAS DROPPED TO 7 OF PRODUCTION THIS YEAR FROM 56 IN 1987 THERE ARE NO DEFENSE ORDERS IN THE HOPPER TO RAISE CAPITAL FOR THE CONVERSION MR YERMISHIN SOLD OFF MISSILE LINES AND OTHER USELESS DEFENSE PRODUCTS TO FACTORIES THAT HADN'T SEEN THE WRITING ON THE WALL HE ALSO TURNED DOWN AN ORDER FOR A VERTICAL TAKEOFF JET THE GOVERNMENT WANTED HE IS STILL A FAR CRY FROM A WESTERN EXECUTIVE THOUGH MR YERMISHIN WHIZZES AROUND SARATOV A CLEAN INDUSTRIAL CITY THAT WAS CLOSED TO OUTSIDERS UNTIL THREE MONTHS AGO IN A WHITE VOLGA AND DRESSES IN WESTERNMADE TWEED JACKETS AND GRAY FLANNEL PANTS HIS PERSONAL LIFE REMAINS MODEST HE EARNS 15000 RUBLES A MONTH 295 AT THE CURRENT TOURIST EXCHANGE RATE HE LIVES IN A THREEBEDROOM APARTMENT AND HIS COUNTRY DACHA LACKS INSIDE PLUMBING MR YERMISHIN STILL HAS A LOT OF WORK TO FINISH BEFORE HIS COMPANY LOOKS ANYTHING LIKE ONE IN THE WEST ON THE DAY OF A RECENT COLLECTIVE REPRESENTATIVES MEETING HE GATHERS WITH HIS MANAGERS TO DECIDE WHAT THE TOP MANAGEMENT STRUCTURE SHOULD LOOK LIKE NOBODY CAN DECIDE IF MR YERMISHIN SHOULD BE CALLED PRESIDENT AND CHIEF EXECUTIVE OFFICER LIKE IN A US FIRM OR GENERALDIRECTOR AS IN A RUSSIAN THE GROUP GRUMBLES AND STARES AT THE POSTER BOARD WHERE THE ALIGNMENTS HAVE BEEN DRAWN UP MR YERMISHIN DECIDES TO BREAK THE DEADLOCK WE'LL SETTLE THIS LATER HE SAYS IT ISN'T IMPORTANT NOW 9301050126 930105 MUNICIPALBOND GROUP URGES CLINTON TO EASE STRICTURES FROM '86 TAX ACT BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A MUNICIPALBOND ADVOCACY GROUP COUNTING BILL CLINTON AMONG ITS CHARTER MEMBERS URGED THE PRESIDENTELECT TO EASE TAX STRICTURES ON MUNIS AS A WAY OF ADVANCING HIS GOAL TO REFURBISH THE US'S INFRASTRUCTURE THE SPECTACLE OF THE PRESIDENTELECT'S BEING ON THE RECEIVING END OF RECOMMENDATIONS HE HELPED TO FORMULATE IS SEEN AS GOOD NEWS FOR BACKERS OF TAXEXEMPT BONDS PARTICULARLY BECAUSE MR CLINTON'S AMBITIOUS INFRASTRUCTURE AGENDA OCCURS DURING A TIME OF LIMITED BUDGETARY RESOURCES THE USE OF TAXEXEMPT BONDS OFFERS AN EFFICIENT AND EFFECTIVE WAY TO ATTACK THE INFRASTRUCTURE CRISIS IMMEDIATELY WITH A MINIMUM OF FEDERAL DOLLARS AND MAXIMUM CERTAINTY THAT THE MONEY WILL FLOW PROMPTLY TO THOSE PROJECTS THAT ARE MOST NEEDED DEPARTING REP BERYL ANTHONY D ARK CHAIRMAN OF THE ANTHONY COMMISSION ON PUBLIC FINANCE SAID IN A LETTER TO MR CLINTON JEFFREY ESSER EXECUTIVE DIRECTOR OF THE GOVERNMENT FINANCE OFFICERS ASSOCIATION SAID PRESIDENTELECT CLINTON'S CLOSE ASSOCIATION WITH THE ANTHONY COMMISSION HEIGHTENS EXPECTATIONS THAT HE AND HIS TREASURY DEPARTMENT WILL SUPPORT RECOMMENDATIONS TO REMOVE TAX RESTRAINTS FROM THE MUNICIPAL MARKET ESPECIALLY CURBS THAT IMPEDE PUBLICPRIVATE PARTNERSHIPS THENARKANSAS GOV CLINTON IN 1987 URGED REP ANTHONY A MEMBER OF THE TAXWRITING HOUSE WAYS AND MEANS COMMITTEE TO CREATE THE BLUERIBBON PANEL OF PUBLIC FINANCE EXPERTS TO TRY TO ROLL BACK SOME OF THE RESTRICTIONS CLAMPED ON THE MUNICIPAL BOND MARKET BY THE 1986 TAX REFORM ACT MR CLINTON WAS AN ORIGINAL MEMBER OF THE BIPARTISAN COMMISSION WHICH CONSISTS OF OTHER PUBLIC OFFICIALS AND BOND MARKET PARTICIPANTS AND REMAINS A MEMBER WE'RE KIND OF GLAD TO HAVE HIM SAID JW RAYDER EXECUTIVE DIRECTOR OF THE COMMISSION AND A FORMER AIDE TO REP ANTHONY WHO LOST A PRIMARY ELECTION LAST YEAR AND IS JOINING THE LAW FIRM OF WINSTON & STRAWN THE ANTHONY COMMISSION FAVORS AMONG OTHER THINGS A MORE EXPANSIVE DEFINITION OF TAXFAVORED PUBLIC ACTIVITY BONDS BROADER INCENTIVES FOR BANKS TO PURCHASE MUNIS EXEMPTING MUNICIPAL BONDS FROM THE FEDERAL MINIMUM TAX AND EASING RULES DESIGNED TO PREVENT ARBITRAGE ABUSES ARBITRAGE IS EARNED IN THE MUNICIPAL MARKET BY INVESTING BOND PROCEEDS IN HIGHERYIELDING INSTRUMENTS IN THE TAX REFORM ACT CONGRESS SUBJECTED SOCALLED PRIVATEPURPOSE MUNIS TO MINIMUM TAXATION AND ENDED THE ABILITY OF BANKS TO DEDUCT THE COSTS OF ACQUIRING AND CARRYING TAXEXEMPT BONDS BOTH STEPS WERE TAKEN IN THE NAME OF TAX EQUITY CONGRESS ALSO REQUIRED STATE AND LOCAL GOVERNMENTS TO REBATE ARBITRAGE PROFITS TO THE TREASURY IN RESPONSE TO PERCEIVED WIDESPREAD ABUSES IN WHICH BONDS WOULD BE SOLD AND BOND MARKET INTERMEDIARIES WOULD PROFIT EVEN THOUGH MANY PROJECTS NEVER WERE BUILT 9301050125 930105 EVEREX SYSTEMS FILES UNDER CHAPTER 11 PC PRICE WAR CITED FREMONT CALIF EVEREX SYSTEMS INC BATTERED BY THE PERSONAL COMPUTER INDUSTRY'S PRICE WAR FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION WITH ANNUAL SALES OF MORE THAN 500 MILLION EVEREX IS ONE OF THE MOST PROMINENT VICTIMS OF THE PC PRICE CUTTING TOUCHED OFF LAST SUMMER BY COMPAQ COMPUTER CORP IN HOUSTON EVEREX RECENTLY ESTIMATED A LOSS OF BETWEEN 80 MILLION TO 120 MILLION FOR ITS FISCAL YEAR ENDED AUG 2 1992 PRIMARILY BECAUSE OF INDUSTRYWIDE PRICE CUTS AND CERTAIN RESTRUCTURING CHARGES RESULTS HAVE NOT YET BEEN ISSUED LAST MONTH THE COMPANY DISCLOSED THAT ITS AUDITORS HAD QUESTIONED ITS ABILITY TO CONTINUE AS A GOING CONCERN EVEREX SAID IT FILED FOR BANKRUPTCY COURT PROTECTION TO FEND OFF CREDITORS AND TO PRESERVE THE DETERIORATING VALUE OF ITS ASSETS AND OPERATIONS WE DETERMINED THAT THIS STEP WAS NECESSARY TO FACILITATE THE PROCESS OF FINANCING THE ONGOING BUSINESS SAID JACK KENNEY CHIEF EXECUTIVE OFFICER IN ADDITION EVEREX SAID THAT JOHN K LEE A PRINCIPAL FOUNDER OF THE COMPANY WAS APPOINTED CHAIRMAN HE SUCCEEDS STEVE HUI ANOTHER PRINCIPAL FOUNDER WHO RESIGNED LAST WEEK 9301050124 930105 WHO'S NEWS KEYCORP KEYCORP ALBANY NY JOHN P MASTRIANI 40 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER OF THE NEWLY FORMED KEYCORP TRUST & INVESTMENT MANAGEMENT GROUP OF THIS MULTIREGIONAL BANK HOLDING COMPANY THE GROUP REPLACES KEYCORP'S SIX EXISTING TRUST COMPANIES MR MASTRIANI WHO HAS SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF THE KEY BANK LIFE INSURANCE LTD UNIT WILL CONTINUE AS PRESIDENT AND CHIEF EXECUTIVE OF THE KEY BROKERAGE CO UNIT AND AS CHAIRMAN OF THE INSURANCE UNIT ALL THREE UNITS ARE BASED IN ALBANY MR MASTRIANI'S SUCCESSOR AS PRESIDENT AND CHIEF EXECUTIVE OF THE INSURANCE UNIT IS EXPECTED TO BE ANNOUNCED SHORTLY 9301050123 930105 ST GOBAIN WOES SEEN CONTINUING DURING 1993 EUROPEAN SLUMP FRANCE'S STRONGFRANC POLICY PRICE WARS ARE BLAMED BY DAVID G PEARSON SPECIAL TO THE WALL STREET JOURNAL PARIS THIS PAST YEAR WAS A DISAPPOINTING ONE FOR FRENCH GLASS AND CONSTRUCTION MATERIALS GROUP SAINTGOBAIN AND 1993 WON'T BE ANY BETTER COMPANY OFFICIALS AND ANALYSTS SAY LIKE MANY OTHER FRENCH COMPANIES SAINTGOBAIN HAS FALLEN VICTIM TO EUROPE'S ECONOMIC SLOWDOWN THE FRENCH GOVERNMENT'S STRONGFRANC POLICY AND PRICE WARS THAT ALREADY MAY BE ERODING MARKET SHARE IN SOME OF ITS MAIN BUSINESSES ANALYSTS WHO FOLLOW THE GROUP CLOSELY HAVE BEEN SCALING BACK THEIR 1992 EARNINGS PROJECTIONS TO REFLECT THE SHARP DETERIORATION IN THE GROUP'S OPERATING ENVIRONMENT IN RECENT MONTHS PRELIMINARY 1992 EARNINGS TO BE RELEASED BY THE GROUP IN MIDJANUARY ARE EXPECTED TO SHOW A NET PROFIT OF BETWEEN 2 BILLION AND 24 BILLION FRANCS 364 MILLION AND 437 MILLION ACCORDING TO A SURVEY OF EQUITY ANALYSTS THAT RANGE IS WELL DOWN FROM PREVIOUS ESTIMATES THAT THE YEAR'S PROFIT COULD REACH 26 BILLION TO 28 BILLION FRANCS UP FROM 25 BILLION IN 1991 IN KEEPING WITH SAINTGOBAIN'S REPUTATION FOR CANDOR CHAIRMAN JEANLOUIS BEFFA RECENTLY PAINTED A DOWNBEAT PICTURE OF THE GROUP'S PROSPECTS OVERALL 1992 WAS QUITE A DIFFICULT YEAR AND 1993 WILL BE ONE TOO MR BEFFA SAID IN AN INTERVIEW WITH A FRENCH FINANCIAL WEEKLY LA SYNTHESE FINANCIERE MR BEFFA AND OTHER SAINTGOBAIN OFFICIALS CONCEDE THE GROUP WAS SURPRISED BY THE SEVERE DOWNTURN IN FRENCH AND GERMAN DEMAND SINCE THE THIRD QUARTER OF THIS YEAR GROUP REVENUE DECLINED BY 4 IN THE THIRD QUARTER CONTRACTION IN THE LAST QUARTER WAS EVEN GREATER ANALYSTS SAY SAINTGOBAIN CAN DRAW LITTLE COMFORT FROM THE OUTLOOK FOR 1993 WITH ECONOMIC ACTIVITY IN GERMANY EXPECTED TO BE FLAT AT BEST ACCORDING TO MOST ECONOMISTS MR BEFFA HAS SAID HE DOESN'T EXPECT ANY IMPROVEMENT IN SALES VOLUMES THIS YEAR ALTHOUGH HE IS OPTIMISTIC THAT THE RECOVERY IN THE US ECONOMY WILL PARTLY OFFSET THE WEAKNESS OF OTHER MARKETS PIERRE BOSSET HEAD OF RESEARCH AT JAMES CAPEL SA SAID SAINTGOBAIN'S PROFIT COULD DROP EVEN FURTHER IN 1993 TO AROUND 21 BILLION FRANCS OR 306 FRANCS A SHARE FROM HIS ESTIMATE OF 23 BILLION FRANCS OR 34 FRANCS A SHARE IN 1992 SAINTGOBAIN'S CASH FLOW DECLINED IN THE SECOND HALF OF 1992 AND THE COMPANY PROBABLY WON'T BE ABLE TO PAY DOWN DEBT AS PLANNED MR BOSSET SAID ADDING THAT MEANS BIGGER FINANCIAL CHARGES THAN EXPECTED ONE OF SAINTGOBAIN'S STRATEGIC GOALS IS TO REDUCE ITS DEBTTOEQUITY RATIO TO 40 BY THE END OF 1993 FROM AROUND 55 AT PRESENT THE COMPANY'S SECOND HALF WAS MARKED BY WEAK GLASS PRICES INCREASED COMPETITION RESTRUCTURING COSTS AND THE DEVALUATION OF PROFIT EARNED IN WEAKCURRENCY AREAS PRICES IN THE FLATGLASS SECTOR PLUNGED BY MORE THAN 40 IN THE PAST TWO YEARS BECAUSE OF OVERCAPACITY AND INCREASED COMPETITION FROM PRODUCERS IN EASTERN EUROPE COMPANY OFFICIALS SAY WEAK PRICES IN SOME OTHER MAIN MARKETS GLASS CONTAINERS AND PAPER HAVE BEEN JUST AS DAMAGING THE BIGGEST SHOCK CAME WHEN STERLING AND THE ITALIAN LIRA WERE WITHDRAWN FROM THE EXCHANGE RATE MECHANISM OF EUROPE'S MONETARY SYSTEM IN SEPTEMBER AND THE PESETA AND THE ESCUDO WERE DEVALUED SUBSEQUENTLY THAT HAS ALLOWED THE POUND TO SLUMP BY 15 AGAINST THE FRENCH FRANC GIVING A PRICE ADVANTAGE TO PILKINGTON PLC OF THE UK SAINTGOBAIN'S ARCH RIVAL IN THE FLATGLASS BUSINESS SAINTGOBAIN SEEMS BETTER OFF IN ITALY AND SPAIN WHERE IT HAS PRODUCTION OPERATIONS AND IS LESS AFFECTED BY THE DEVALUATIONS OF THE LIRA AND THE PESETA BUT SAINTGOBAIN ALSO IS BEING HURT BY COMPETITION FROM EASTERN EUROPE AND THE RECESSION IN THE CONSTRUCTION INDUSTRY AND HEAVY LOSSES IN THE PAPERWOOD SECTOR HAVE COMPOUNDED THE GROUP'S WOES THE WEAKNESS OF THE SCANDINAVIAN CURRENCIES IS MAKING PRODUCERS OF PAPER AND BOARD IN THESE COUNTRIES MORE COMPETITIVE AND ALAN COATS EQUITY ANALYST FOR PARIBAS CAPITAL MARKETS IN LONDON ESTIMATES THAT SAINT GOBAIN'S LOSSES IN THIS SECTOR ALONE COULD TOTAL 300 MILLION FRANCS IN 1992 THE GROUP HAS BEEN FORCED TO MOTHBALL SOME PRODUCTION LINES IN A BID TO REDUCE OVERCAPACITY AND RESTRUCTURING COSTS IN 1992 COULD SWELL TO 800 MILLION FRANCS FROM 475 MILLION IN 1991 ANALYSTS SAY SAINTGOBAIN EXECUTIVES ARE MOST WORRIED ABOUT THE OUTLOOK FOR GERMANY WHICH CONTRIBUTES SOME 20 OF THE GROUP'S PROFIT AND WHERE SAINTGOBAIN HAS A BIG MARKET SHARE IN FLAT GLASS FOR THE AUTO INDUSTRY DESPITE MR BEFFA'S UPBEAT SENTIMENT ABOUT THE US FOR NEXT YEAR NORTH AMERICA CONTRIBUTES ONLY 15 OF SALES AND 5 OF GROUP PROFIT ANALYSTS NOTE IN A STRATEGIC MOVE TWO YEARS AGO TO MAKE ITSELF LESS CYCLICAL SAINTGOBAIN ACQUIRED NORTON CO A WORCESTER MASS MANUFACTURER OF ABRASIVES AND REFRACTORY CERAMICS NORTON SHOULD BENEFIT FROM THE UPTURN IN THE US BUT 70 OF ITS SALES COME FROM EXPORTS MAINLY TO EUROPE WHAT'S MORE THE WEAKNESS OF THE STEEL GLASS AND ENGINEERING INDUSTRIES HAS DEPRESSED DEMAND FOR ABRASIVES AND INDUSTRIAL CERAMICS ANALYSTS SAY THEY DON'T EXPECT ANY IMPROVEMENT IN THE COMPANY'S PROSPECTS UNTIL THE SECOND HALF OF 1993 ASSUMING THAT GERMAN INTEREST RATES COME DOWN 9301050122 930105 DOW JONES WORLD STOCK INDEX JOURNAL LAUNCHES INDEX TRACKING WORLD STOCKS TODAY'S EDITION OF THE WALL STREET JOURNAL INTRODUCES A NEW BENCHMARK OF STOCK PERFORMANCE FOR GLOBAL INVESTORS THE DOW JONES WORLD STOCK INDEX DOW JONES & CO WHICH PUBLISHES THE JOURNAL CREATED THE INDEX TO PROVIDE A COMPREHENSIVE MEASURE OF STOCK PERFORMANCE WORLDWIDE AS INVESTORS' INTEREST IN GLOBAL MARKETS GROWS RAPIDLY THE WORLD INDEX IS THE LATEST ADDITION TO AN EXPANDING TOOL KIT OF MARKET BAROMETERS FROM DOW JONES THE OLDEST AND BESTKNOWN TOOL IS THE DOW JONES INDUSTRIAL AVERAGE WHICH TRACKS 30 BLUECHIP STOCKS OF LARGE COMPANIES THAT ARE WIDELY FOLLOWED BY INDIVIDUAL AND INSTITUTIONAL INVESTORS THE DOW JONES WORLD STOCK INDEX IS A GLOBAL EXPANSION OF THE FOURYEAROLD DOW JONES EQUITY MARKET INDEX FOR THE US THE WORLD INDEX COMPRISES STOCKS OF 2200 COMPANIES FROM COUNTRIES AROUND THE GLOBE ORGANIZED INTO NEARLY 120 INDUSTRY GROUPS TABLES DETAILING 1992 PERFORMANCE APPEAR IN TODAY'S PAPER WORLD INDEX RESULTS WILL BE PUBLISHED DAILY IN THE JOURNAL'S MONEY & INVESTING SECTION ALTHOUGH PAGE NUMBERS MAY VARY FROM DAY TO DAY INFORMATION ON THE PERFORMANCE OF US INDUSTRY GROUPS PREVIOUSLY ON A TABLE ON PAGE C6 IS NOW INCORPORATED INTO THE WORLD INDEX TABLE THE DOW JONES WORLD STOCK INDEX OFFERS SUPERIOR MEASURES OF STOCK MARKET PERFORMANCE BY PROVIDING INVESTORS WITH TWO COMPARATIVE VIEWS GEOGRAPHIC AND INDUSTRIAL SAID KENNETH L BURENGA PRESIDENT AND CHIEF OPERATING OFFICER OF DOW JONES INVESTORS CAN ASSESS THE POLITICAL ECONOMIC AND FINANCIAL FORCES AFFECTING THE GLOBAL MARKET AND MEASURE HOW AN INDIVIDUAL ISSUE HAS PERFORMED AGAINST ITS PEERS ON A GLOBAL REGIONAL OR NATIONAL BASIS FOR EXAMPLE THEY CAN LOOK AT THE AUTO MANUFACTURING INDUSTRY JUST IN THE US EUROPE OR THE FAR EAST OR AROUND THE WORLD INITIALLY 10 COUNTRIES REPRESENTING MORE THAN 80 OF THE COMBINED CAPITALIZATION STOCK PRICES TIMES THE NUMBER OF SHARES OUTSTANDING OF ALL WORLD STOCK MARKETS ARE INCLUDED IN THE INDEX THE US REPRESENTED BY THE ALREADYEXISTING DOW JONES INDUSTRY GROUPS CANADA BRITAIN GERMANY FRANCE ITALY JAPAN HONG KONG SINGAPORE AND AUSTRALIA OVER TIME THE INDEX WILL INCLUDE EVERY COUNTRY WHOSE STOCKS ARE AVAILABLE TO FOREIGN INVESTORS STOCKS IN COUNTRIES THAT IMPOSE SIGNIFICANT RESTRICTION ON FOREIGN OWNERSHIP ARE INCLUDED IN THE WORLD INDEX IN THE SAME PROPORTION THAT SHARES ARE AVAILABLE TO FOREIGN INVESTORS COUNTRIES IN THE OVERALL WORLD INDEX ARE GROUPED INTO THREE GEOGRAPHIC REGIONS PACIFIC RIM EUROPE AND THE AMERICAS THE INDUSTRY GROUPS ARE ORGANIZED WITHIN NINE BROAD SECTORS SUCH AS BASIC MATERIALS UTILITIES CONSUMER AND FINANCIAL WE ARE USING THE SAME INDUSTRYGROUP STRUCTURE EVERYWHERE AND WE APPLIED THE SAME CRITERIA IN SELECTING STOCKS FOR THE GROUPS MR BURENGA SAID THAT WAY INVESTORS ARE ASSURED OF COMPARABILITY WHEN THEY ASSESS ONE GROUP OF STOCKS IN JAPAN AND THE SAME GROUP IN THE US READERS CAN OBTAIN MORE INFORMATION ON THE DOW JONES WORLD STOCK INDEX BY CALLING 8005440406 EACH COUNTRY'S INDEX IS CALCULATED IN THAT COUNTRY'S OWN CURRENCY PLUS THE DOLLAR POUND MARK AND YEN THE REGIONAL AND WORLD INDEXES WILL BE CALCULATED IN THE FOUR GLOBAL CURRENCIES FOR THE CONVENIENCE OF INVESTORS AROUND THE WORLD CALCULATIONS ARE MADE IN MULTIPLE CURRENCIES BECAUSE THE VALUE OF A STOCK PORTFOLIO IS AFFECTED BOTH BY THE PRICES OF STOCKS AND BY THE EXCHANGE RATE OF TWO CURRENCIES THE CURRENCY IN WHICH STOCKS TRADE AND THE ONE IN WHICH THE PORTFOLIO IS MEASURED WHEN THE TWO CURRENCIES ARE THE SAME AS IS THE CASE FOR A US INVESTOR WITH ONLY US STOCKS EXCHANGE RATES AREN'T AN ISSUE BUT CURRENCY TRANSLATIONS CAN ADD OR SUBTRACT SUBSTANTIALLY FROM MARKET PERFORMANCE WHEN THE STOCKS ARE IN OTHER COUNTRIES THE WALL STREET JOURNAL WITH ITS PRIMARILY US AND CANADIAN READERSHIP WILL PRINT MANY BUT NOT ALL VERSIONS OF THE WORLD INDEX FORMATS MORE SUITED TO OVERSEAS READERS ARE BEING PUBLISHED IN THE WALL STREET JOURNAL EUROPE AND THE ASIAN WALL STREET JOURNAL DOW JONES INTERNATIONAL NEWS SERVICE THE DOW JONES NEWS SERVICE DOW JONES NEWS/RETRIEVAL DOW JONES/TELERATE AND OTHER DOW JONES INFORMATION PRODUCTS AND SERVICES ALSO WILL FEATURE VARIOUS FORMATS OF THE WORLD INDEX THE INDEX WILL BE CARRIED BY THE ASSOCIATED PRESS AS WELL DOW JONES UTILIZED ITS WORLDWIDE RESOURCES TO CREATE THE WORLD INDEX STOCK SELECTION INDEX CALCULATION AND DATABASE MAINTENANCE ARE BEING DONE BY DOW JONES INFORMATION SERVICES STATISTICIANS WHILE INFORMATION SERVICES AND WALL STREET JOURNAL OPERATIONS PERSONNEL ARE INVOLVED IN COMPUTERRELATED COMMUNICATIONS AND PUBLISHING ASPECTS OF PRODUCING THE INDEX STOCK PRICES FROM EXCHANGES AROUND THE WORLD AND ROUNDTHECLOCK CURRENCY VALUES ARE SUPPLIED BY DOW JONES/TELERATE 9301050121 930105 LETTERS TO THE EDITOR HOW BEST TO MAKE OURSELVES HEARD YOUR DEC 22 EDITORIAL EXTEND AMERICA'S VOICE IS RIGHT ON THE PROPOSED JOINT VOICE OF AMERICA/RADIO FREE EUROPE/RADIO LIBERTY INSTALLATION IN ISRAEL OF 16 SUPERHIGHPOWER 500000 WATT SHORTWAVE TRANSMITTERS FILLS A LARGE HOLE IN OUR INTERNATIONAL BROADCASTING COVERAGE STATE DEPARTMENT/VOA URGING THAT IT BE CANCELED AND MOVED TO KUWAIT HAS ABSOLUTELY NO REDEEMING FEATURES FROM A POLITICAL STANDPOINT CAN ANYONE IN HIS RIGHT MIND IMAGINE PUTTING A 250 MILLION TARGET RIGHT ON SADDAM HUSSEIN'S BORDER PEOPLE INSIDE THE BELTWAY KNOW THIS IS NOTHING MORE THAN ANOTHER VOA TURF BATTLE THAT DOES NOT SERVE THE INTERESTS OF THE AMERICAN PEOPLE RFE/RL HAS BEEN AN EMBARRASSMENT AND A THORN IN VOA'S SIDE FOR YEARS IN 1983 CONGRESS APPROVED A 13 BILLION VOA WORLDWIDE MODERNIZATION PROGRAM VOA HIRED OVER 200 SCIENTISTS MOST WITH PHDS IN UNRELATED FIELDS AND EXPERIENCE IN OTHER INDUSTRIES TEN YEARS AND 684 MILLION LATER NOT A SINGLE MAJOR INSTALLATION IS YET ON THE AIR THAT IS WHY CONGRESS PUT RFE/RL IN CHARGE WHEN IT AUTHORIZED THE ISRAELI PROJECT RFE/RL HAS A LONG AND EXCELLENT HISTORY OF ACCOMPLISHMENTS IT WAS THE FINAL EMBARRASSMENT FOR THE PAST YEAR THE USIA VOA'S PARENT HAS BEEN LOBBYING TO KILL OFF RFE/RL CLAIMING THE COLD WAR IS OVER BY CANCELING THE ISRAELI INSTALLATION AND MOVING IT TO KUWAIT PRESUMABLY UNDER VOA DIRECTION IT CAN PUT A NAIL IN RFE/RL'S COFFIN AS DIRECTOR OF ONE OF THE TWO COOPERATING AGENCIES OF GOVERNMENT THAT WOULD OPERATE THE PROPOSED RADIO TRANSMITTER IN ISRAEL I TAKE ISSUE WITH THE CONCLUSIONS OF YOUR EDITORIAL IN IT YOU ADVOCATE BUILDING A SHORTWAVE RADIO TRANSMISSION STATION IN THE NEGEV DESERT OF ISRAEL AND OBJECT TO ADMINISTRATION PLANS TO REVISIT THE ISSUE BEFORE SPENDING AN ADDITIONAL 200 MILLION OF THE PROPOSED BUDGET BOTH THE US INFORMATION AGENCY WHICH OVERSEES THE VOICE OF AMERICA AND THE BOARD FOR INTERNATIONAL BROADCASTING WHICH OVERSEES RADIO FREE EUROPE AND RADIO LIBERTY ARE PART OF THE REVIEW PROCESS UNDER WAY TO DETERMINE WHETHER THE ISRAEL PROJECT SHOULD GO FORWARD THE REVIEW IS WARRANTED THE WORLD IS VERY DIFFERENT FROM THE ONE IN 1985 WHEN OUR BROADCASTING REQUIREMENTS INCLUDED THE NEED TO OVERCOME VAST AND EFFECTIVE JAMMING IN CENTRAL ASIA WE DON'T WANT TO SEE OUR BROADCASTING GOALS FRUSTRATED BUT WE WANT TO MAKE VERY SURE WE SPEND THE TAXPAYERS' MONEY WISELY AND WELL IF THE REVIEW SHOWS THAT WE CAN GET AMERICA'S MESSAGE ACROSS MORE EFFECTIVELY AND AT LESS COST FROM A NEW LOCATION WE WILL SUPPORT THAT CONCLUSION ENTHUSIASTICALLY SO SHOULD YOU 9301050120 930105 DIVIDEND NEWS FIRMS BOOSTING PAYOUTS INCREASED IN DECEMBER BY 19 S&P REPORTS NEW YORK THE NUMBER OF COMPANIES RAISING DIVIDENDS INCREASED 19 LAST MONTH A SIGN OF GROWING BUSINESS CONFIDENCE ACCORDING TO STANDARD & POOR'S CORP ANALYST ARNOLD KAUFMAN SAID THERE WERE 121 DIVIDEND BOOSTS IN DECEMBER UP FROM 102 A YEAR EARLIER MR KAUFMAN EDITOR OF S&P'S WEEKLY OUTLOOK NEWSLETTER SAID THE DECEMBER BOOST REPRESENTS THE 14TH STRAIGHT MONTH OF YEARTOYEAR IMPROVEMENT MEANWHILE THE NUMBER OF FIRMS THAT DECREASED THEIR DIVIDENDS WAS CUT IN HALF TO EIGHT LAST MONTH FROM 16 IN DECEMBER 1991 COMPANIES WHICH OMITTED PAYMENTS EDGED UP TO 19 FROM 18 IN ALL OF 1992 1333 COMPANIES REPORTED DIVIDEND INCREASES A 23 GAIN FROM 1086 IN 1991 DIVIDEND DECREASES FOR THE YEAR DROPPED TO 131 FROM 187 AND OMISSIONS FELL TO 146 FROM 250 LAST YEAR'S DIVIDEND PERFORMANCE WHILE ENCOURAGING WAS STILL WELL BELOW PAR MR KAUFMAN SAID IN ONLY TWO YEARS OF THE PAST TWO DECADES 1991 AND 1990 WERE THERE FEWER DIVIDEND INCREASES THAN IN 1992 FOR 1993 HE SEES A GREATER NUMBER OF DIVIDEND INCREASES REFLECTING THE BRIGHTENING ECONOMIC OUTLOOK PARTICULARLY THE PROSPECT FOR STRONG EARNINGS GAINS HE ADDED THAT DIVIDENDS ON STOCKS IN THE S&P 500 INDEX ARE EXPECTED TO RISE ABOUT 6 THIS YEAR AFTER A 15 RISE IN 1992 AND A 1 DECLINE IN 1991 9301050119 930105 SALOMON REACHES COMPENSATION PACTS WITH 2 AIDES WHO LEFT AMID INQUIRY BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC SAID IT REACHED COMPENSATION SETTLEMENTS WITH TWO FORMER SENIOR OFFICERS WHO LEFT THE COMPANY IN AUGUST 1991 AMID AN INVESTIGATION OF THE FIRM'S CONDUCT IN US TREASURY SECURITIES AUCTIONS THE OFFICIALS THOMAS STRAUSS AND JOHN MERIWETHER WHO HAD BEEN PRESIDENT AND VICE CHAIRMAN RESPECTIVELY HAD CLAIMED PAYMENTS UNDER COMPANY COMPENSATION PLANS INCLUDING STOCK OPTIONS AND OTHER INCENTIVES SALOMON DESCRIBED THE SETTLEMENTS AS PAYMENTS REQUIRED FOR REASONABLE RESOLUTION OF CLAIMS THEY WERE ENTITLED TO WHEN THEY LEFT THE FIRM THE INVESTMENT BANKING CONCERN SAID IT ALSO MADE SETTLEMENT OFFERS TO TWO OTHER FORMER EXECUTIVES JOHN GUTFREUND AND DONALD FEUERSTEIN WHO HAD BEEN CHAIRMAN AND CHIEF LEGAL OFFICER RESPECTIVELY BUT COULDN'T REACH AGREEMENTS WITH THEM UNDER THE SETTLEMENT MR STRAUSS WAS ALLOWED TO EXERCISE OPTIONS TO PURCHASE 145000 SALOMON SHARES AT AN AVERGE EXERCISE PRICE OF 18375 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SALOMON SHARES WERE QUOTED AT 38 A SHARE DOWN 125 CENTS AT THAT PRICE THE EXERCISED OPTIONS WOULD GIVE MR STRAUSS A PROFIT OF ABOUT 28 MILLION SALOMON ALSO SAID THAT MR STRAUSS'S PARTICIPATION IN OTHER COMPENSATION PLANS WHICH HAD BEEN AWARDED PRIOR TO 1991 WAS CONFIRMED AND THAT SHARES ALLOCATED TO HIS ACCOUNT IN THE FIRM'S EQUITY PARTNERSHIP PLAN WERE PURCHASED FROM HIM AT CURRENT MARKET PRICES LESS A DISCOUNT FOR CERTAIN SHARES MR MERIWETHER'S PRE1991 PARTICIPATION IN VARIOUS COMPENSATION PLANS WAS CONFIRMED AND HE WAS AWARDED ADDITIONAL COMPENSATION OF 8 MILLION FOR HIS SERVICES IN 1991 MR MERIWETHER SURRENDERED HIS INTEREST IN THE EQUITY PARTNERSHIP PLAN IN EXCHANGE FOR RESTRICTED STOCK AND CASH HE ALSO RECEIVED 17 MILLION REFLECTING THE LOSS HE SUFFERED WHEN SALOMON REFUSED TO ALLOW HIM TO EXERCISE PREVIOUSLY AWARDED STOCK OPTIONS FOR 182200 SALOMON SHARES THE FOUR EXECUTIVES LEFT SALOMON IN CONNECTION WITH AN INVESTIGATION OF THE FIRM'S CONDUCT CONCERNING ALLEGEDLY ILLEGAL BIDS IN TREASURY AUCTIONS MADE BY SALOMON BROTHERS INC'S FORMER HEAD TRADER PAUL MOZER AND THOMAS MURPHY MR MOZER'S RIGHTHAND MAN THE TWO TRADERS ARE CONTESTING CHARGES AGAINST THEM BY THE SECURITIES AND EXCHANGE COMMISSION FILED IN DECEMBER THE CASE IS SIMILAR TO CHARGES SETTLED BY SALOMON BROTHERS AND ITS PARENT SALOMON INC IN 1992 THE INVESTMENT BANKING FIRM PAID 290 MILLION IN FINES AND RESTITUTION BUT DIDN'T ADMIT OR DENY WRONGDOING THE SEC HAS SETTLED CHARGES THAT MESSERS GUTFREUND STRAUSS AND MERIWETHER FAILED TO PROPERLY OVERSEE THE ACTIONS OF THE TRADING DESK THEY DIDN'T ADMIT OR DENY CHARGES MR FEUERSTEIN WASN'T CHARGED BUT WAS CRITICIZED FOR FAILING TO BE MORE ACTIVE IN FORCING OTHER OFFICIALS TO TAKE ACTION MR GUTFREUND HAS SAID HE IS OWED A BONUS OF 2 MILLION FOR 1991 PLUS SEVERANCE PAY OF 45 MILLION AND NEARLY 350000 FROM A SPECIAL BONUS PLAN AN ADDITIONAL 55 MILLION IN OPTIONS TO BUY SALOMON STOCK HELD BY MR GUTFREUND PRIOR TO HIS OUSTER IS ALSO IN DISPUTE ACCORDING TO SALOMON'S 1991 PROXY STATEMENT MR STRAUSS HAD SOUGHT A 19 MILLION BONUS 4 MILLION IN SEVERANCE 31 MILLION FROM A DEFERREDPAYMENT POOL AND NEARLY 270000 FROM THE SPECIAL BONUS PLAN HE ALSO CLAIMED ABOUT 23 MILLION IN SALOMON OPTIONS IN THE SETTLEMENT HE GAVE UP OPTIONS ON 198000 SHARES MR STRAUSS'S ATTORNEY HAD NO COMMENT ON THE SETTLEMENT SALOMON WHICH ANNOUNCED THE SETTLEMENTS YESTERDAY AFTERNOON SAID DIRECTORS WILL REVIEW THE QUESTION OF ADVANCING LEGAL FEES TO SOME OR ALL OF THE FORMER SENIOR OFFICERS AT ITS NEXT MEETING ANY ADVANCES WOULD BE SUBJECT TO A PROMISE OF REPAYMENT IF THEY ULTIMATELY AREN'T FOUND TO MEET LEGAL REQUIREMENTS ROBERT E DENHAM CHAIRMAN AND CHIEF EXECUTIVE OF SALOMON INC SAID THE SETTLEMENTS REFLECT APPROPRIATE RESOLUTIONS OF CLAIMS UNDER PREEXISTING PLANS HE SAID MR MERIWETHER WAS PAID ADDITIONAL 1991 COMPENSATION IN RECOGNITION OF HIS CONTRIBUTION TO THE FIRM IN THAT YEAR INCLUDING THE EXTRAORDINARY 1991 PERFORMANCE OF THE WORLDWIDE BUSINESSES FOR WHICH HE WAS RESPONSIBLE HOWEVER MR DENHAM SAID THE AMOUNT WAS WELL BELOW WHAT HE WOULD HAVE RECEIVED ABSENT THE TREASURY AUCTION MATTER MR DENHAM SAID THAT NO ADDITIONAL COMPENSATION AMOUNTS WERE PAID FOR 1991 AND THAT NO SEVERANCE PAYMENTS WERE MADE 9301050118 930105 CHAIRMAN OF CHICAGO MERC SELLS 49 STAKE IN FIRM CHICAGO RB & H INC A COMMODITY BROKERAGE FIRM OWNED BY CHICAGO MERCANTILE EXCHANGE CHAIRMAN JOHN F SANDNER SOLD A 49 INTEREST TO A GROUP INCLUDING ARAB INVESTORS THE PRICE OF THE SALE WASN'T DISCLOSED THE MOVE IS PART OF A TREND BY SMALL CHICAGOBASED BROKERAGE CONCERNS TO LOCATE DEEPPOCKETED PARTNERS TO COMPETE FOR INSTITUTIONAL BROKERAGE BUSINESS MORE THAN A YEAR AGO FORMER MERC CHAIRMAN LEO MELAMED AGREED TO SELL PART OF HIS BUSINESS TO A JAPANESE BANK IN A TRANSACTION THAT STILL IS AWAITING APPROVAL BY THE FEDERAL RESERVE BOARD AMONG THE INVESTORS IN RB & H OF WHICH MR SANDNER HAD BEEN THE SOLE STOCKHOLDER IS ABDULLAH BAKHSH A SAUDI BUSINESSMAN WHO RECENTLY TOOK A MAJOR STAKE IN HARTMARX CORP MR SANDNER SAID HE WILL REMAIN AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RB & H AND WILL PERSONALLY RETAIN A CONTROLLING 51 INTEREST IN THE FIRM THE COMPANY WILL BE REORGANIZED AND RENAMED RB & H FINANCIAL SERVICES LP WHICH WILL PURSUE FUTURESTRADING BUSINESS FROM INSTITUTIONAL INVESTORS 9301050115 930105 MARKETING & MEDIA ADVERTISING NEEDHAM'S BERLIN TURNS IRREVERENT IN NEW VOLKSWAGEN CAMPAIGN BY KEVIN GOLDMAN VOLKSWAGEN OF AMERICA HOPING TO JUMPSTART ITS SAGGING CAR SALES IS INTRODUCING A 30MINUTE INFOMERCIAL AND NEW PRINT AND TELEVISION ADS THAT HEARKEN BACK TO IRREVERENT VOLKSWAGEN CAMPAIGNS OF THE PAST THE NEW CAMPAIGN WILL CONTINUE UNDER OMNICOM GROUP'S DDB NEEDHAM VOLKSWAGEN'S AD AGENCY WHICH HAS HAD THE ACCOUNT SINCE 1959 BUT THE ACCOUNT HAS A NEW OVERSEER ANDY BERLIN THE LOQUACIOUS AND AMBITIOUS PRESIDENT OF NEEDHAM'S NEW YORK OFFICE PREVIOUSLY VOLKSWAGEN'S CAMPAIGNS WERE CREATED BY NEEDHAM'S DETROIT OFFICE WHICH OPERATED AUTONOMOUSLY FROM THE GOTHAM HEADQUARTERS THE DETROIT OFFICE SAYS MR BERLIN NOW REPORTS TO ME THE SHIFT WHICH WAS MADE WITHOUT A FORMAL ANNOUNCEMENT SIGNIFICANTLY EXPANDS THE POWER BASE OF MR BERLIN WHO WAS PLUCKED FROM HIS POST AT ANOTHER OMNICOM AGENCY SAN FRANCISOBASED GOODBY BERLIN & SILVERSTEIN LAST APRIL MR BERLIN WHO ALONG WITH HIS PARTNERS SOLD THAT AGENCY TO OMNICOM LAST YEAR WAS CREDITED WITH SNARING THE 75 MILLION TO 90 MILLION AMERICAN ISUZU MOTORS ACCOUNT IN 1991 FOR GOODBY BERLIN HE WAS BROUGHT TO NEW YORK IN ORDER TO STIMULATE NEEDHAM'S BUSINESS BUT SO FAR HAS SNARED MOSTLY MIDSIZE ACCCOUNTS INCLUDING JAMES RIVER CORP WASHINGTON POST CO AND PRINCESS HOTELS HOWEVER MR BERLIN ALSO SUFFERED A MAJOR SETBACK WHEN HE AND NEEDHAM'S NEW YORK OFFICE COMPETED AGGRESSIVELY FOR THE FRUIT OF THE LOOM INC ACCOUNT BUT LOST TO LEO BURNETT CO UNTIL THE VOLKSWAGEN ASSIGNMENT MR BERLIN 42 YEARS OLD HAD PRIMARILY BEEN RESPONSIBLE FOR THE GTE CORP ACCOUNT MR BERLIN SAYS HE RECEIVED THE VOLKSWAGEN ASSIGNMENT LAST MONTH BECAUSE JOHN BERNBACH PRESIDENT OF DDB NEEDHAM WORLDWIDE WANTED TO SEE IF I COULD HANDLE IT MR BERLIN DECLINED TO COMMENT ON SPECIFICS OF THE NEW AD CAMPAIGN BUT ACCORDING TO OTHER EXECUTIVES MR BERLIN AND NEEDHAM CREATED SLOGANS THAT POKE FUN AT THE PRODUCT FOR EXAMPLE IN NEW PRINT ADS THAT ARE SCHEDULED TO BE RELEASED LATER THIS MONTH FOR THE EUROVAN VOLKSWAGEN'S NEW ENTRY IN THE HIGHLY COMPETITIVE COMPACT VAN CATEGORY THE TAG LINE IS STILL UGLY AFTER ALL THESE YEARS SUCH SELFDEPRECATING HUMOR WAS TYPICAL OF VOLKSWAGEN ADS IN THE AUTO MAKER'S HEYDEY HERE FOR EXAMPLE WHEN AMERICANS LANDED ON THE MOON IN 1969 VOLKSWAGEN'S AD SHOWED THE LUNAR LANDING CAPSULE THE ADVERTISEMENT WITH A VW LOGO ON THE BOTTOM READ IT'S UGLY BUT IT GETS YOU THERE VOLKSWAGEN A UNIT OF VOLKSWAGEN AG OF GERMANY IS EXPECTED TO SPEND OVER 50 MILLION ITS TYPICAL ANNUAL BUDGET ON THE NEW PRINT TELEVISION AND RADIO CAMPAIGNS INCLUDING ADS FOR THE JETTA AND GOLF MODELS THE AD AGENCY IS UNSURE ABOUT WHEN IT WILL RELEASE THE NEW ADS BECAUSE VOLKSWAGEN HAS HAD PRODUCTION PROBLEMS IN MEXICO WHICH HAVE ALREADY DELAYED THE NEW PRODUCT INTRODUCTIONS SCHEDULED FOR LAST AUGUST VOLKSWAGEN IS ALSO READYING A HALFHOUR INFOMERCIAL THAT A SPOKESMAN SAYS WON'T BE A SALES PITCH BUT RATHER A RETROSPECTIVE ON THE HISTORY OF THE AUTOMOBILE MANUFACTURER AND THE COMPANY'S FUTURE OUTLOOK IT REPORTEDLY MIGHT FEATURE SOME NOTED CELEBRITIES INCLUDING FEMINIST GLORIA STEINEM AS WELL AS A MALE ANNOUNCER NOW HEARD ON VOLKSWAGEN ADS NEEDHAM ISN'T PRODUCING THE INFOMERCIAL BUT WILL PURCHASE THE MEDIA TIME FOR IT WHEN IT IS READY TO AIR PERHAPS IN APRIL ACCORDING TO A NEEDHAM EXECUTIVE VOLKSWAGEN IS NOT ONLY TALKING TO SEVERAL CABLE CHANNELS BUT THE FOUR MAJOR BROADCAST NETWORKS AS WELL THE IDEA OF THE INFOMERCIAL ORIGINATED FROM VOLKSWAGEN WHICH BEGAN PREPARING SCRIPTS LAST JULY INFOMERCIALS POPULAR DEVICES FOR SELLING VEGETABLE JUICE MACHINES AND EXERCISE DEVICES AREN'T COMMON FOR AUTOMOBILE MANUFACTURERS BUT THEY AREN'T NEW EITHER FOR EXAMPLE SATURN CORP USED THEM LAST YEAR AND IS PRODUCING A SECOND TO RUN LATER THIS YEAR VOLKSWAGEN CLEARLY NEEDS TO TRY A NEW APPROACH ITS SALES HAVE FALLEN DRAMATICALLY OVER THE PAST DECADE LARGELY BECAUSE OF COMPETITION FROM JAPANESE COMPETITORS SAYS CHRIS CEDERGREN AN ANALYST WITH AUTOPACIFIC GROUP A SANTA ANA CALIF CONSULTING FIRM WHICH TRACKS AUTOMOBILE SALES THE JETTA MODEL WHICH SOLD 93000 UNITS AND HAD 5 OF THE SUBCOMPACT CATEGORY IN 1986 ITS BEST YEAR SOLD 31000 UNITS LAST YEAR AND SECURED ONLY 2 OF THE CATEGORY ACCORDING TO MR CEDERGREN THE GOLF MODEL HAD ITS BEST YEAR IN 1985 WHEN IT SOLD 78000 UNITS FOR 5 OF THE SUBCOMPACT CATEGORY LAST YEAR GOLF SOLD 10000 UNITS AND HAD A PUNY 03 OF THE CATEGORY CLEARLY JETTA AND GOLF ARE GOING TO DRIVE VOLKSWAGEN'S BUSINESS SAYS MR CEDERGREN JETTA AND GOLF ARE GETTING COMPLETE OVERHAULS UNDER THE HOOD AS WELL AS BODY DESIGNS FROM VOLKSWAGEN BOTH MODELS HAVE REMAINED UNCHANGED FOR YEARS AND SAYS MR CEDERGREN THAT PARTLY ACCOUNTS FOR THEIR SALES SLUMP AUTO MAKERS ARE NOTORIOUS FOR DISMISSING AD AGENCIES WHEN CAR SALES GO INTO A TAILSPIN BUT NEEDHAM EXECUTIVES INCLUDING ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER KEITH REINHARD INSIST THE AGENCY WAS NEVER IN DANGER OF LOSING THE VOLKSWAGEN ACCOUNT IN FACT HE SAYS NEEDHAM HANDLES VOLKSWAGEN BUSINESS IN OVER 25 COUNTRIES SO WHY THE CHANGE OF BRINGING IN MR BERLIN AFTER ALL WERE THE ISUZU ADS THAT MEMORABLE WE PROPOSED THIS SAYS MR REINHARD VOLKSWAGEN NAMED A NEW HEAD OF ITS US OPERATION THOMAS W SHAVER IN SEPTEMBER AND WE THOUGHT THIS WAS A GOOD TIME TO EVALUATE HOW EFFICIENT WE WERE DOING BUSINESS VOLKSWAGEN DIDN'T HIRE JUST OUR DETROIT OFFICE IT HIRED OUR ENTIRE WORLDWIDE OPERATION AND ANDY IS AN IMPORTANT PART OF THAT BURT MANNING CHAIRMAN AND CHIEF EXECUTIVE OF J WALTER THOMPSON MOVED TO QUASH SPECULATION ABOUT WHOM HE WOULD NAME TO SUCCEED HIM BY MAKING PUBLIC HIS INTENTIONS TO PROMOTE VICE CHAIRMAN PETER SCHWEITZER TO THE POST OF PRESIDENT MR MANNING 61 WHOSE EMPLOYMENT CONTRACT WITH PARENT COMPANY WPP GROUP WAS RENEWED FOR AN UNDISCLOSED TIME PERIOD LAST MONTH INSISTED YESTERDAY THAT HE ISN'T GOING ANYWHERE JUST YET THE NEWS IS THAT I'M STAYING HE SAID DECLINING TO SPECIFY WHEN MR SCHWEITZER'S APPOINTMENT WOULD GO INTO EFFECT HE ALSO INSISTED THAT THE NEXT CONCLUSION THAT MR SCHWEITZER WOULD EVENTUALLY SUCCEED MR MANNING AT THE AGENCY'S HELM WAS QUITE PREMATURE MR MANNING FIRST MADE HIS PLANS PUBLIC IN ADWEEK MAGAZINE THE ANNOUNCEMENT APPEARS TO VAULT MR SCHWEITZER AHEAD OF OTHER INTERNAL CANDIDATES INCLUDING THE AGENCY'S OTHER VICE CHAIRMAN WILLIAM C THOMPSON JR BUT MR THOMPSON SAID HE DIDN'T BELIEVE HIS ROLE AT THE AGENCY HAD BEEN DIMINISHED MY ROLE CONTINUES TO BE EXTREMELY IMPORTANT IN THIS COMPANY MR THOMPSON SAID IF IT WEREN'T I WOULDN'T BE HAPPY WORKING HERE MR SCHWEITZER COULDN'T BE REACHED MR SCHWEITZER 53 IS CURRENTLY VICE CHAIRMAN OF AGENCY OPERATIONS HE HEADS THE AGENCY'S DETROIT OPERATIONS AND THE BIG FORD ACCOUNT MR THOMPSON 54 IS VICE CHAIRMAN OF CLIENT OPERATIONS OVERSEEING THE AGENCY'S RELATIONSHIP WITH MULTINATIONAL CLIENTS 9301050114 930105 LEISURE & ARTS VERY RARE REDLEGGED BIRD VISITS BROOKLYN MARINA BY MARIE WINN BROOKLYN NY LATE LAST FALL IN A MARSH IN LAPLAND OR PERHAPS IT WAS ON THE BANKS OF THE YENISEY RIVER IN CENTRAL SIBERIA FAR FAR AWAY IN ANY EVENT A BUNCH OF LARGE SHORE BIRDS BEGAN TO GATHER IN FLOCKS AND WAIT FOR THE RIGHT WEATHER A GOOD STRONG WIND FROM THE NORTHWEST WAS WHAT THEY NEEDED TO HELP THEM REACH THEIR DISTANT WINTERING GROUNDS IN SOUTHERN CHINA THAILAND OR VIETNAM ONE DAY THEY TOOK OFF SUDDENLY A FREAK STORM CAME UP AND CAUGHT THE FLOCK IN ITS PATH BLOWING THE BIRDS COMPLETELY OFF COURSE ONE CONFUSED YOUNG MALE WANDERED MILES IN THE WRONG DIRECTION CLEAR ACROSS THE BERING STRAIT AND INTO ALASKA FOR A FEW DAYS THE STRAY BIRD RESTED AND FED IN THE COMPANY OF LOCAL SHORE BIRDS MANY BELONGED TO HIS OWN FAMILY SANDPIPERS AND A FEW TO HIS VERY GENUS TRINGA BUT NONE WAS EXACTLY LIKE HIM FOR ONE THING HIS NEW COMPANIONS WERE GENETICALLY PROGRAMMED TO HEAD SOUTH FOR THE WINTER WHILE HIS SPECIES' INHERITED TENDENCY WAS TO GO SOUTHEAST WHICH ONCE HE GOT HIS BEARINGS IS JUST WHAT HE DID MAKING HIS WAY ACROSS AN ENTIRE CONTINENT UNTIL HE CAME TO A COAST THAT QUITE POSSIBLY IS HOW A SPOTTED REDSHANK ONE OF THE RAREST OF ALL RARE BIRD VISITORS TO NORTH AMERICA HAPPENED TO END UP IN A SMALL BACKWATER OF A NEIGHBORHOOD MARINA IN BROOKLYN ON DEC 6 JOHN C YRIZARRY AND HIS WIFE MARY LONGTIME BROOKLYN RESIDENTS DECIDED TO MAKE A LITTLE DETOUR ON THEIR WAY HOME FROM SHOPPING THE BROOKLYN CHRISTMAS BIRD COUNT WAS JUST A FEW WEEKS AWAY AND MR YRIZARRY A RENOWNED BIRD ARTIST WAS IN CHARGE OF ONE COUNTING AREA THOUGH IT WASN'T ACTUALLY IN HIS ASSIGNED TERRITORY HE WANTED TO CHECK OUT A SMALL MARINA NEAR SHEEPSHEAD BAY JUST AT THE INTERSECTION OF KNAPP STREET AND AVENUE X IT WAS AN UNLIKELY SPOT BUT LAST YEAR HE HAD SEEN SOME LARGE SHORE BIRDS CALLED GREATER YELLOWLEGS THERE THEY ARE COMMON BIRDS BUT NOT ALWAYS AROUND FOR THE CHRISTMAS COUNT A CHRISTMAS COUNT FOR THE RECORD IS AN ANNUAL BIRD CENSUS THAT TAKES PLACE ALL OVER THE COUNTRY DURING THE FINAL WEEKS OF DECEMBER IT WAS STARTED IN 1900 AS AN ALTERNATIVE TO TRADITIONAL CHRISTMAS SIDE HUNTS DURING WHICH HUNTERS WENT OUT AFTER CHRISTMAS DINNER CHOSE SIDES AND COMPETED TO SEE WHICH GROUP COULD SHOOT MORE BIRDS IT IS SPONSORED BY THE NATIONAL AUDUBON SOCIETY AND UNDERTAKEN BY VOLUNTEER BIRD LOVERS WHO COUNT NOT ONLY THE DIFFERENT SPECIES OF BIRDS BUT ALSO THE ACTUAL NUMBER OF INDIVIDUALS TODAY CHRISTMAS COUNTS PROVIDE USEFUL SCIENTIFIC DATA ABOUT BIRD POPULATIONS BUT THEY ARE STILL COMPETITIVE BROOKLYN REALLY WANTS TO BEAT MONTAUK AT THE OTHER END OF LONG ISLAND IN TOTAL NUMBER OF SPECIES AND TEAMS IN EVERY AREA DREAM OF FINDING A RARE BIRD AT THE MARINA MR YRIZARRY IMMEDIATELY SIGHTED SOME GREATER YELLOWLEGS ROOSTING ON A BROKENDOWN WOODEN FLOAT IN THE MURKY WATER THE BIRDS WERE ASLEEP HE FOCUSED HIS BINOCULARS ON THEM FOR A MOMENT THEN HE RUSHED BACK TO THE CAR WHERE HIS WIFE WAS WAITING PATIENTLY WITH THE GROCERIES MARY GET OUT FIVE YELLOW LEGS AND ONE OF THEM HAS REDORANGE LEGS HE EXCLAIMED IF THIS BIRD WAS WHAT HE THOUGHT IT WAS THEN IT FELL INTO THE CATEGORY DESCRIBED BY KENN KAUFMAN IN HIS FIELD GUIDE TO ADVANCED BIRDING AS A COSMIC MINDBENDER USING A TELESCOPE HE KEEPS IN THE TRUNK OF HIS CAR FOR JUST SUCH CONTINGENCIES MR YRIZARRY NOW OBSERVED OTHER SIGNS INDICATING THAT THE BIRD THOUGH IT CLOSELY RESEMBLED A YELLOWLEGS WAS IN FACT AN EXCITINGLY DIFFERENT CREATURE IT HAD LESS STREAKING ON THE CROWN AND A LONGER EYELINE SUDDENLY THE MYSTERY BIRD RAISED ITS HEAD MR YRIZARRY QUICKLY INSPECTED THE BILL BEFORE THE BIRD TUCKED IT AWAY AGAIN YES A DROOP TO THE TIP AS IF IT HAD BEEN HIT BY A HAMMER AND YES BRIGHT REDORANGE ON HALF OF THE LOWER MANDIBLE THAT WAS THE CLINCHER ONLY ONE BIRD HAS ALL THOSE FEATURES AND HE HAD LAST SEEN IT IN EUROPE IN 1974 ON HIS HONEYMOON AND HERE WAS ANOTHER ONE JUST A SHORT DRIVE FROM HOME MR YRIZARRY TURNED TO HIS WIFE AND SAID DO YOU KNOW I BELIEVE WE HAVE A SPOTTED REDSHANK HERE THE BIRD REAPPEARED BRIEFLY TWO DAYS LATER AND THEN IT VANISHED MUCH TO THE DISTRESS OF GREAT NUMBERS OF BIRDERS WHO HEARD OF IT ON THE RARE BIRD ALERT A TELEPHONE SERVICE THAT GIVES INFORMATION ON UNUSUAL SIGHTINGS ON DEC 18 THE DAY BEFORE THE BROOKLYN CHRISTMAS COUNT THE SPOTTED REDSHANK REAPPEARED AT THE KNAPP STREET MARINA AND WAS SPOTTED IN TURN BY STARR SAPHIR ONE OF THE CITY'S BEST BIRDERS AND THE CAPTAIN OF ONE OF THE 13 TEAMS OF THE BROOKLYN COUNT JUST BEFORE NOTIFYING THE RARE BIRD ALERT SHE CALLED DOROTHY POOLE WHO WOULD BE ON HER TEAM THE NEXT DAY WHEN YOU THINK THAT SOME BIRDERS GO ALL THE WAY TO MADAGASCAR TO ACQUIRE A NEW BIRD FOR THEIR LIST IT IS NOT SURPRISING THAT MS POOLE DROPPED EVERYTHING AT HER MANHATTAN OFFICE WHERE SHE WORKS AS A MARKET RESEARCHER AND FLAGGED A TAXI TO TAKE HER TO THE SOUTHEAST CORNER OF BROOKLYN WORD THAT THE REDSHANK WAS BACK SPREAD RAPIDLY BY SUNRISE ON DEC 19 THERE WERE ALREADY THREE BIRDERS AT THE MARINA SIX GREATER YELLOWLEGS WERE THERE TOO ASLEEP ON THE FLOAT BUT NO SPOTTED REDSHANK BY 3 THAT AFTERNOON A SMALL BAND OF DISAPPOINTED REDSHANKSEEKERS WERE GATHERED AT THE MARINA RICK CECH A VICE PRESIDENT AT JP MORGAN & CO AND A NOTABLE BIRDER WAS AMONG THEM HE WAS THE ORGANIZER OF THE BROOKLYN COUNT AND HE BADLY WANTED A REDSHANK ON BROOKLYN'S LIST THAT WOULD SETTLE MONTAUK'S HASH AT 430 EVERYONE WAS JUST ABOUT TO CALL IT A DAY WHEN A YOUNG MAN APPEARED WITH A BREATHLESS MESSAGE WE HAVE IT THE MAN WAS DAVID KRAUSS A GRADUATE STUDENT ON MS SAPHIR'S TEAM I WAS THE FOURTH MEMBER OF THAT TEAM WE HAD REACHED OUR LAST STOP ON THE COUNT A LITTLE SALTWATER POND JUST EAST OF PLUMB BEACH WHICH IS A SEMIWILD PROMONTORY LOOKING OUT ON ROCKAWAY INLET IT WAS A LITTLE AFTER 4 AS WE APPROACHED WE COULD SEE THREE BIRDS FEEDING IN THE MUD AT THE WATER'S EDGE WITHOUT MUCH HOPE WE PEERED AT THEM THROUGH BINOCULARS AND ALMOST AT THE SAME MOMENT WE REALIZED THAT THE SMALLEST OF THOSE THREE BIRDS WAS THE REDSHANK IT HAD BRIGHT REDORANGE LEGS IT SCUTTLED ABOUT A BIT MORE NERVOUSLY THAN THE OTHER TWO AS WE WATCHED AN ODD SLIGHTLY CREEPY YET EXHILARATING FEELING CAME OVER US WE GATHERED CLOSER AND HUGGED EACH OTHER THEN MR KRAUSS RAN TO THE CAR TO TELL THE CROWD WAITING AT THE MARINA THAT WE HAD THE REDSHANK THE OTHER BIRDERS DASHED TO THEIR CARS AND FOLLOWED ONE OF THE PEOPLE WHO HAD HURRIED TO THE POND FROM KNAPP STREET INTRODUCED HERSELF TO ME IN THE LOWERING LIGHT ANNA KOZLENKO A VISITING ORNITHOLOGIST FROM THE MOSCOW RESEARCH INSTITUTE OF NATURAL HISTORY AND CONSERVATION SHE HAD SEEN A SPOTTED REDSHANK ONCE BEFORE IN HER LIFE SHE TOLD ME AND THAT WAS LAST MAY ON THE BANKS OF THE YENISEY RIVER IN CENTRAL SIBERIA I FELT A CHILL WE EXCHANGED A LOOK AND I KNEW WE WERE BOTH THINKING THE SAME ASTONISHING THOUGHTSTAR MONTAUK CHALKED UP 130 SPECIES BROOKLYN HAD 128 ONE OF THEM A SPOTTED REDSHANK AS OF YESTERDAY THE BIRD WAS STILL IN BROOKLYN ROOSTING ON THE SAME FLOAT AT THE SAME MARINA AT THE INTERSECTION OF KNAPP STREET AND AVENUE X MS WINN IS A NEW YORK WRITER 9301050113 930105 BUSINESS BRIEFS MID AM INC COMPLETED ITS ACQUISITION OF ULTRA BANCORP FOR 12 MILLION MEAD CORP'S MEAD DATA CENTRAL UNIT ACQUIRED FOLIO CORP A CLOSELY HELD SOFTWARE CONCERN BASED IN PROVO UTAH TERMS WERE NOT DISCLOSED ALLTEL CORP COMPLETED ITS ACQUISITION OF SLT COMMUNICATIONS INC IN EXCHANGE FOR 37 MILLION ALLTEL COMMON SHARES OR ABOUT 178 MILLION JAMES RIVER CORP COMPLETED THE SALE OF ITS SPECIALTY AND INDUSTRIAL PAPERS MILL IN PEPPERELL MASS TO A UNIT OF MERRIMAC PAPER CO TERMS WERE NOT DISCLOSED CITY HOLDING CO COMPLETED ITS ACQUISITION OF BUFFALO BANK OF ELEANOR WVA FOR 23 MILLION JOHN H HARLAND CO ACQUIRED THE ASSETS OF ROCKY MOUNTAIN BANK NOTE CO FOR 36 MILLION HJ HEINZ CO'S HEINZ PET PRODUCTS UNIT COMPLETED ITS PURCHASE OF 3 MILLION OF CONVERTIBLE PREFERRED STOCK OF VETERINARY CENTERS OF AMERICA INC 9301050112 930105 LAW MILKEN IS RELEASED TO HALFWAY HOUSE IN LOS ANGELES AREA THE FORMER JUNKBOND KING WILL FINISH LAST 2 MONTHS OF HIS REDUCED SENTENCE BY JONATHAN M MOSES AND AMY STEVENS STAFF REPORTERS OF THE WALL STREET JOURNAL MICHAEL MILKEN CHECKED INTO A HALFWAY HOUSE IN A LOS ANGELES WORKINGCLASS NEIGHBORHOOD WHERE THE FORMER JUNKBOND KING WILL FINISH THE REMAINING TWO MONTHS OF HIS REDUCED PRISON SENTENCE FEDERAL PRISON OFFICIALS ON SUNDAY TRANSFERRED MR MILKEN TO THE VINEWOOD COMMUNITY CORRECTIONAL CENTER LOCATED IN THE EASTERN PART OF HOLLYWOOD AND ONE BLOCK NORTH OF SUNSET BOULEVARD FOR THE PREVIOUS 22 MONTHS MR MILKEN WAS AN INMATE AT THE FEDERAL PRISON CAMP IN PLEASANTON CALIF A RURAL AREA NEAR SAN FRANCISCO MR MILKEN JOINS ABOUT 40 OTHER RESIDENTS MOSTLY MEN IN THE THREEBUILDING FACILITY WHICH INCLUDES A HOUSE BUILT IN 1922 AND ONCE OWNED BY THE MOVIE STAR MARY PICKFORD ACCORDING TO A VINEWOOD CLERK PAINT IS PEELING ON THE CREAMCOLORED HOUSE WHICH IS DOWN THE BLOCK FROM A PAWNSHOP LIQUOR STORE AND HARDWARE STORE THE FACILITY IN A HISPANIC NEIGHBORHOOD IS AROUND THE CORNER FROM AN INTERSECTION HEAVILY LOOTED DURING LAST YEAR'S RIOTING AFTER THE ACQUITTAL OF POLICE ACCUSED OF BEATING RODNEY KING WHILE AT THE HALFWAY HOUSE MR MILKEN WILL HAVE MUCH GREATER PERSONAL FREEDOM THAN HE HAD AT THE PRISON CAMP HE WILL BE REQUIRED TO WORK IN A JOB APPROVED BY THE HALFWAY HOUSE AND WILL HAVE TO SIGN IN AND OUT WHEN HE GOES TO WORK PEOPLE CLOSE TO MR MILKEN SAID HE IS LIKELY TO WORK IN THE EDUCATION FIELD BUT MR MILKEN FORMERLY HEAD OF THE JUNKBOND DEPARTMENT AT DREXEL BURNHAM LAMBERT INC WILL BE ABLE TO LEAVE THE HALFWAY HOUSE IN THE EVENING HOURS UNTIL ITS 9 PM CURFEW HE ALSO WILL BE ELIGIBLE FOR WEEKEND PASSES AND FRIENDS SAY HE WILL USE THAT OPPORTUNITY TO VISIT HIS FAMILY IN NEARBY ENCINO CALIF MR MILKEN PLEADED GUILTY IN 1990 TO SIX SECURITIESRELATED FELONIES LATER THAT YEAR US DISTRICT JUDGE KIMBA WOOD IN NEW YORK GAVE MR MILKEN ONE OF THE STIFFEST PENALTIES EVER FOR A WALL STREET CRIMINAL 10 YEARS IN PRISON WITH THE EXPECTATION THAT HE WOULD BE ELIGIBLE FOR PAROLE AFTER SERVING 36 TO 40 MONTHS AND A 200 MILLION FINE IN 1992 JUDGE WOOD GAVE MR MILKEN CREDIT FOR COOPERATING WITH PROSECUTORS AND REDUCED HIS SENTENCE SO THAT HE WOULD SERVE ONLY TWO YEARS WHEN MR MILKEN IS RELEASED FROM THE HALFWAY HOUSE ON MARCH 2 HE STILL WILL HAVE TO DO THREE YEARS OF FULLTIME COMMUNITY SERVICE WHILE ON PROBATION IN A STATEMENT ISSUED THROUGH LORRAINE SPURGE A FRIEND AND FORMER TOP AIDE OF MR MILKEN'S AT DREXEL HE SAID WITH THE START OF A NEW YEAR I BEGIN A NEW PHASE IN MY LIFE I OBVIOUSLY HAVE SEEN GREAT CHANGES IN MY LIFE AND AS THIS NEXT CHAPTER BEGINS I WILL DO MY BEST TO MAKE A WORTHWHILE CONTRIBUTION TO THE COMMUNITY WHILE STAYING AT THE HALFWAY HOUSE MR MILKEN ALSO IS EXPECTED TO VISIT PROGRAMS IN WHICH HE MIGHT BE ABLE TO DO HIS COMMUNITY SERVICE DOZENS OF LETTERS HAVE BEEN SENT TO MR MILKEN AND JUDGE WOOD SUGGESTING COMMUNITYSERVICE PROJECTS FOR MR MILKEN MS SPURGE AND OTHER PEOPLE CLOSE TO MR MILKEN SAID HE PLANS TO FOCUS ON TEACHING OR EDUCATION ANY COMMUNITYSERVICE PROGRAM ULTIMATELY WILL HAVE TO BE APPROVED BY JUDGE WOOD MR MILKEN ALSO IS GEARING UP FOR HIS FUTURE OUTSIDE FEDERAL CUSTODY MS SPURGE WHO NOW RUNS A BEVERLY HILLS CALIF CONSULTING GROUP CALLED KNOWLEDGE EXCHANGE SAID HER FORMER BOSS WOULD LIKE TO START UP A BUSINESS TO PROVIDE INTERACTIVE EDUCATIONAL PROGRAMS TO CABLETELEVISION NETWORKS MR MILKEN ALSO IS PLANNING TO WRITE A BOOK WHICH MS SPURGE SAID WILL FOCUS MORE ON FINANCE AND ACCESS TO CAPITAL THAN HIS OWN LIFE MS SPURGE HAS REPLACED THE PROMINENT AND POLITICALLY CONNECTED PUBLICRELATIONS COMPANY OF ROBINSON LAKE LERER & MONTGOMERY AS MR MILKEN'S MAIN SPOKESWOMAN ASSISTING MS SPURGE HAS BEEN EIN COMMUNICATIONS ANOTHER WASHINGTON DC PUBLICRELATIONS COMPANY WHICH REPRESENTS NUMEROUS LAW FIRMS MS SPURGE WAS NEVER ACCUSED OF ANY WRONGDOING BY THE GOVERNMENT IN THE MILKENDREXEL INVESTIGATION TERREN PEIZER A DREXEL COLLEAGUE WHO TESTIFIED AGAINST MR MILKEN IN HIS PRESENTENCING HEARING IN 1990 CLAIMED THAT HE TURNED OVER TO MS SPURGE A NOTEBOOK CONTAINING TRADING RECORDS IN AN ILLEGAL PAYBACK SCHEME THE NOTEBOOK WAS NEVER RECOVERED MS SPURGE DECLINED TO COMMENT MR MILKEN ALSO IS ASSISTING HIS LAWYERS IN FINALIZING A 13 BILLION CIVIL SETTLEMENT WITH PRIVATE INVESTORS AND WITH THRIFT AND INSURANCE REGULATORS MR MILKEN CONTRIBUTED 900 MILLION TO THAT SETTLEMENT OF WHICH 400 MILLION WAS MONEY HE HAD ALREADY PAID TO SETTLE A SECURITIES AND EXCHANGE COMMISSION LAWSUIT PART OF HIS NEXT TASK WILL BE TO LIQUIDATE ASSETS IN PARTNERSHIPS HE SET UP AT DREXEL AN INDIVIDUAL CLOSE TO MR MILKEN SAID HE WILL DO THAT WORK OUTSIDE THE HALFWAY HOUSE AND WILL NEED ACCESS TO A COMPUTER AND A PHONE MR MILKEN IS BARRED FROM WORKING IN THE SECURITIES INDUSTRY BUT WITH CONTROL OF A PERSONAL AND FAMILY FORTUNE BELIEVED TO BE NEARLY 500 MILLION AND WITH CLOSE TIES TO MANY CORPORATE LEADERS HE IS EXPECTED TO REMAIN ACTIVE IN THE BUSINESS WORLD 9301050111 930105 NUEVO ENERGY FINDS OIL IN FIELD HOUSTON NUEVO ENERGY CO SAID IT FOUND OIL IN AN EXISTING FIELD AT WEEKS ISLAND IN THE IBERIA PARISH OF LOUISIANA THE WELL FLOWED AT A RATE OF 816 BARRELS A DAY THROUGH A 12/64 INCH OPENING BETWEEN 11870 AND 12084 FEET THE COMPANY SAID NUEVO AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY HAS A 47 INTEREST IN THE WEEKS ISLAND FIELD WHERE STONE PETROLEUM CORP BASED IN NEW ORLEANS IS THE OPERATOR 9301050110 930105 RAW STEEL OUTPUT ROSE 46 IN LATEST WEEK WASHINGTON RAW STEEL PRODUCTION BY THE NATION'S MILLS FOR THE WEEK ENDED JAN 2 1993 INCREASED 46 TO 1762000 TONS FROM 1684000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 14 FROM THE 1738000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 811 OF ITS CAPABILITY LAST WEEK COMPARED WITH 779 THE PREVIOUS WEEK AND 787 A YEAR AGO IN ADDITION FOR THE WEEK ENDED DEC 26 1992 RAW STEEL PRODUCTION INCREASED 14 TO 1684000 TONS FROM 1661000 TONS THE PREVIOUS WEEK ACCORDING TO THE AISI OUTPUT FOR THAT WEEK ROSE 27 FROM THE 1640000 TONS PRODUCED A YEAR AGO THE CAPABILITY RATE OF 779 IN THE WEEK ENDED DEC 26 COMPARED WITH 768 THE PREVIOUS WEEK AND 735 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9301050109 930105 SWISS STOCKS ARE EXPECTED TO RISE IN '93 ANALYSTS CITE MANY FACTORS FOR CONTINUED GAINS AFTER SURGE LAST YEAR BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH THE SWISS STOCK MARKET WAS EUROPE'S TOP PERFORMER LAST YEAR AND ANALYSTS SAY IT HASN'T RUN OUT OF STEAM THE SWISS MARKET WILL CONTINUE TO LOOK GOOD IN 1993 SAID LONDONBASED ENSKILDA RESEARCH ANALYST MICHAEL CLARK WHO PREDICTS AN AVERAGE PRICE RISE OF 15 OR MORE IN THE CURRENT YEAR WORKING IN FAVOR OF THE MARKET ANALYSTS SAID ARE LOWER INTEREST RATES A MOVEMENT OF INVESTMENT FUNDS FROM THE MONEY MARKET TO STOCKS AND BONDS RECEDING SWISS INFLATION CONTINUED TENSION WITHIN THE EUROPEAN CURRENCY SYSTEM SWISS INSTITUTIONAL LIQUIDITY A MORE INVESTORFRIENDLY ATTITUDE BY SWISS COMPANIES AND A RANGE OF REASONABLY PRICED SWISS BLUE CHIPS MR CLARK NOTED HOWEVER THAT THE QUESTION MARKS ARE HOW MUCH FURTHER SWISS INTEREST RATES CAN COME DOWN AND WHERE THE HOT CURRENCY WILL FLOW IN 1993 LAST YEAR ANALYSTS NOTE THE SWISS MARKET BENEFITED FROM AN INFLOW OF INTERNATIONAL FUNDS SEEKING A HAVEN IN THE WAKE OF CURRENCY UNCERTAINTY WITHIN THE EUROPEAN COMMUNITY THE INFLOW BOLSTERED THE SWISS FRANC AND ALLOWED INTEREST RATES WITHIN SWITZERLAND TO FALL SWITZERLAND ISN'T A MEMBER OF THE EC AND IT RECENTLY EVEN REJECTED MEMBERSHIP IN A PROPOSED 18NATION EUROPEAN ECONOMIC AREA COMPOSED OF COUNTRIES WITHIN THE EC AND THE EUROPEAN FREE TRADE ASSOCIATION IN 1992 THE BLUECHIP SWISS MARKET INDEX OUTPACED MAJOR EUROPEAN RIVALS BY SURGING MORE THAN 26 TO 2107 UP FROM 16701 AT THE START OF THE YEAR THE BROADER SWISS PERFORMANCE INDEX WHICH ALSO CONTAINS LESSSOUGHTAFTER SECONDARY STOCKS JUMPED NEARLY 18 TO 123857 FROM 105283 THE STAR PERFORMER WAS SWITZERLAND'S LARGEST WATCHMAKER SMH SWISS CORP FOR MICROELECTRONICS & WATCHMAKING INDUSTRIES WHICH MORE THAN DOUBLED I WAS ALMOST ANXIOUS THE WAY SMH WENT UP SAYS BANK LEU ANALYST PLINIO ZANETTI MR ZANETTI CLAIMS A 35 RISE FOR THE SWISS STOCK SECTION OF LEU'S GLOBAL ASSET ALLOCATION FUND IN 1992 THANKS LARGELY TO A STRONG WEIGHTING IN SMH ROCHE HOLDING LTD AND NESTLE SA LAST YEAR ROCHE DIVIDENDRIGHTS CERTIFICATES GAINED NEARLY 60 AND NESTLE STOCK ROSE MORE THAN 30 THIS YEAR WE HAVE INCREASED OUR WEIGHT IN BANKS MR ZANETTI SAID BANKS WILL BENEFIT FROM BETTER INTERESTRATE MARGINS THIS VIEW IS BACKED BY BANK JULIUS BAER ANALYST HANS KAUFMANN WHO SAID THAT HIS COMPANY IS VERY POSITIVE FOR THE FINANCIAL SECTOR MR KAUFMANN MENTIONS UNION BANK OF SWITZERLAND CS HOLDING ZURICH INSURANCE AND WINTERTHUR INSURANCE SWISS DRUG STOCKS REMAIN FAVORITES IN 1993 ANALYSTS SAID WE'RE BULLISH ON SWISS PHARMA STOCKS DECLARED LONDONBASED BNP SECURITIES ANALYST IAN BROADHURST HE NAMES ROCHE CIBAGEIGY AG SANDOZ AG AND ARES SERONO SA THOMAS LIPS WHO HEADS UBS INVESTMENT RESEARCH IS LOOKING FOR A GENERALLY BETTER CLIMATE FOR EUROPEAN STOCKS THIS YEAR WITH NICE GAINS IN FRANCE AND HOLLAND BUT ESPECIALLY IN SWITZERLAND MR LIPS SUGGESTED THAT SPECIAL FACTORS ARE MOVING THE SWISS MARKET AS ONCESECRETIVE SWISS COMPANIES OPEN UP INTERNATIONAL INVESTORS ARE RECOGNIZING THEIR FAVORABLE STOCKPRICE VALUATION HE SAID THERE IS A RERATING OF THE SWISS STOCK MARKET GOING ON ADDED SWISS VOLKSBANK ANALYST FREDERICK HASSLAUER HE SAID THE SWISS MARKET HAS BECOME MUCH MORE ACCESSIBLE TO INTERNATIONAL INVESTORS THROUGH A NUMBER OF DEVELOPMENTS ANALYSTS INCLUDE IN THE CHANGES ADOPTION BY MANY LEADING SWISS COMPANIES OF INTERNATIONAL ACCOUNTING STANDARDS SHARESPLITTING TO REDUCE THE MARKET'S HEAVY SINGLESHARE PRICE SIMPLIFICATION OF CAPITAL STRUCTURES THROUGH A REDUCTION TO ONE SHARE CATEGORY FROM THREE REMOVAL OF RESTRICTIONS AGAINST NONSWISS INVESTORS AT MANY BLUECHIP COMPANIES AND COMPANY PRESENTATIONS AIMED AT INSTITUTIONAL INVESTORS IN MAJOR GLOBAL FINANCIAL CENTERS SUCH CHANGES ARE PROPELLING THE MARKET MR HASSLAUER BELIEVES ON THE OTHER HAND SWISS BANK CORP ANALYST STEPHAN MEIER SUGGESTED THAT INSTITUTIONAL INVESTORS ALREADY HAVE TAKEN SUCH CHANGES INTO ACCOUNT REFORMS BENEFITED THE MARKET IN 1992 I EXPECT LESS SO IN 1993 MR MEIER IS ANTICIPATING A CONSOLIDATION OF THE MARKET AT THE START OF THE YEAR NEVERTHELESS HE ADDS A GAIN OF 15 IN THE BLUECHIP SMI INDEX FOR THE WHOLE YEAR SEEMS REASONABLE 9301050108 930105 BUSINESS BRIEF DIME SAVINGS BANK GETS US APPROVAL FOR ITS CAPITAL PLAN NEW YORK DIME SAVINGS BANK OF NEW YORK SAID THE OFFICE OF THRIFT SUPERVISION APPROVED THE BANK'S REVISED CAPITAL PLAN WHICH INCLUDES AN EQUITY INFUSION OF ABOUT 125 MILLION DIME SAID ITS PLAN FILED DEC 18 WILL ALLOW IT TO ACHIEVE A LEVERAGEBASED CAPITAL RATIO OF 5 AND A RISKBASED CAPITAL RATIO OF 8 BY JUNE 30 THE BANK CURRENTLY HAS A LEVERAGEDBASED RATIO OF 271 AND A RISKBASED CAPITAL RATIO OF 511 DIME WHICH RECENTLY SAID THE OTS REDUCED THE RISKBASED CAPITAL RATIO REQUIREMENT TO 8 FROM 9 BY JUNE 30 SAID THE PLAN CALLS FOR A RISKBASED CAPITAL RATIO OF 9 BY YEAREND 1993 AND 10 BY YEAREND 1994 UNDER THE PLAN DIME PLANS TO IMPROVE ITS RATIOS THROUGH BRANCH SALES CONTINUED REDUCTION OF NONPERFORMING ASSETS AND REDUCTION IN NONINTEREST EXPENSE THE COMPANY DECLINED TO SAY WHICH BRANCHES WERE UNDER IMMEDIATE CONSIDERATION FOR SALE ONLY SAYING THAT IT PLANS TO FOCUS MORE CLOSELY ON ITS CORE NEW YORK CITY AREA THE COMPANY HAS ALREADY SOLD BRANCHES IN THE ALBANY AND BUFFALO NY REGIONS DIME ALSO WOULDN'T SPECIFY HOW IT WOULD RAISE THE 125 MILLION REQUIRED FOR THE EQUITY INFUSION SAYING ONLY THAT IT WAS WORKING WITH ITS INVESTMENT BANKERS AND CONSIDERING ALL OPTIONS DIME SAID IT OUTLINED SEVERAL OPTIONS TO RAISE EQUITY IN ITS OTS FILING AND IT IS STILL CONSIDERING WHICH OPTION WOULD BE MOST BENEFICIAL THE RECAPITALIZATION PLAN WILL REDUCE DIME'S ASSETS TO ABOUT 75 BILLION BY JUNE 30 FROM 94 BILLION ON SEPT 30 1992 9301050107 930105 FINANCIER SOROS PLANS TO GIVE MACEDONIA A 25 MILLION LOAN NEW YORK FINANCIER GEORGE SOROS WHO LAST MONTH DONATED A TOTAL OF 150 MILLION TO SCIENTISTS IN THE FORMER SOVIET UNION AND TO BOSNIA PLANS TO LEND 25 MILLION TO MACEDONIA WHICH HAS DECLARED INDEPENDENCE FROM YUGOSLAVIA BUT REMAINS UNDER THE CONTROL OF THE BELGRADE GOVERNMENT MACEDONIA HAS YET TO BE RECOGNIZED BY OTHER NATIONS AS AN INDEPENDENT COUNTRY MAKING IT INELIGIBLE FOR CERTAIN INTERNATIONAL AID MR SOROS SAID HIS REVOLVING LOAN TO MACEDONIA'S MODERATE COALITION GOVERNMENT WILL BE USED TO BUY HEATING OIL AND FOR OTHER PRESSING NEEDS THE HUNGARIANBORN MR SOROS WHO MANAGES NEARLY 4 BILLION THROUGH THE QUANTUM FUND AND OTHER INVESTMENT VEHICLES ALSO RUNS THE NEW YORKBASED SOROS FOUNDATION WHICH FINANCES A NETWORK OF PRIVATE ORGANIZATIONS OPERATING IN CENTRAL AND EASTERN EUROPE IN A PREPARED STATEMENT MR SOROS CAUTIONED THAT HARDSHIPS IN MACEDONIA ARE EXACERBATING ETHNIC TENSIONS IN THE AREA IF THERE IS CONFLICT IN MACEDONIA IT IS LIKELY TO DEGENERATE INTO A GENERAL BALKAN WAR HE SAID ON THE OTHER HAND IF A MULTIETHNIC SOCIETY CAN SURVIVE THERE IT WOULD HELP TO CONTAIN THE TURMOIL THAT HAS ENGULFED THE REGION IN AUGUST MR SOROS SET UP A FUND IN MACEDONIA FOCUSING ON INDEPENDENT NEWS MEDIA MINORITY RIGHTS EDUCATION AND HUMANITARIAN AID 9301050106 930105 TECHNOLOGY INTEL IS RANKED NO 1 CHIP MAKER FOR 1992 BY STUDY BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP BECAME THE WORLD'S LARGEST SEMICONDUCTOR SUPPLIER IN 1992 AND US CHIP MAKERS AS A GROUP GAINED MARKET SHARE AT THE EXPENSE OF JAPANESE COMPANIES ACCORDING TO A CLOSELY WATCHED ANNUAL STUDY INTEL IS THE FIRST NONJAPANESE COMPANY TO HOLD THE TOP CHIPSALES POSITION SINCE 1984 WHEN TEXAS INSTRUMENTS INC WAS RANKED FIRST BY THE STUDY INTEL'S REVENUE IN 1992 ROSE 26 TO 51 BILLION GIVING IT A 77 SHARE OF THE WORLDWIDE CHIP MARKET LAST YEAR AND BOOSTING IT FROM NO 3 IN 1991 ACCORDING TO ESTIMATES BY DATAQUEST INC A MARKETRESEARCH FIRM JAPAN'S NEC CORP THE CHIPMARKET LEADER IN 1991 DROPPED TO NO 2 IN 1992 AND TOSHIBA CORP DROPPED TO NO 3 LAST YEAR FROM NO 2 IN 1991 INTEL'S GROWTH WAS FUELED BY SALES OF ITS MICROPROCESSORS FOR PERSONAL COMPUTERS PARTICULARLY ITS 486 COMPUTER CHIPS WHICH REMAIN IN HIGH DEMAND AND WHICH HAVE HIGH PROFIT MARGINS JAPANESE COMPANIES' SALES ARE MORE HEAVILY WEIGHTED TOWARD STANDARD PRODUCTS SUCH AS MEMORY CHIPS WHICH CARRY LOWER MARGINS THE SLUMPING JAPANESE ECONOMY HELPED DRAG DOWN JAPAN'S MARKET SHARE IN CHIPS BY FOUR PERCENTAGE POINTS TO 428 WHILE NORTH AMERICAN COMPANIES HAD A 411 MARKET SHARE NEARLY A THREE PERCENTAGEPOINT GAIN COMPUTER MICROPROCESSORS CUSTOMIZED CHIPS AND CHIPS USED IN TELEPHONE EQUIPMENT ALL STRONG SUITS OF US MAKERS HELPED BOOST US SALES IN GENERAL SAID GARY GRANDBOIS AN ANALYST AT DATAQUEST THE COMPUTER MARKETS AND THE COMMUNICATIONS MARKETS WERE ABLE TO BUOY THE COMPANIES UP VERY STRONGLY MR GRANDBOIS SAID MOTOROLA INC REMAINED THE WORLD'S FOURTH LARGEST SUPPLIER ACCORDING TO THE STUDY ITS CHIP REVENUE RISING 22 TO 46 MILLION ALL OF THE OTHER US CHIP MANUFACTURERS THAT PLACED AMONG THE WORLD'S TOP 20 CHIP MAKERS IN THE STUDY TEXAS INSTRUMENTS NATIONAL SEMICONDUCTOR CORP ADVANCED MICRO DEVICES INC AND THE AT&T MICROELECTRONICS UNIT OF AMERICAN TELEPHONE & TELEGRAPH ALSO SHOWED DOUBLEDIGIT REVENUE GROWTH JAPANESE COMPANIES IN THE STUDY ON THE OTHER HAND SHOWED AT BEST ONLY SINGLEDIGIT REVENUE GROWTH IN 1992 JAPANESE NEC HAD CHIP REVENUE OF 5 BILLION WITH A 76 MARKET SHARE FOLLOWED BY TOSHIBA WHICH SAW CHIP REVENUE GROW 4 TO 48 BILLION WITH A 73 SHARE REVENUE DROPPED 5 IN 1992 AT BOTH FUJITSU LTD RANKED NO 7 AND MATSUSHITA ELECTRIC INDUSTRIAL CO RANKED NO 10 9301050105 930105 MONDAY'S MARKETS DOW GAINS 811 US OUTLOOK SPURS DOLLAR BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE STOCK MARKET BEGAN THE NEW YEAR IN A SOBER MOOD WITH PRICES MIXED BUT BOND PRICES RALLIED AND THE DOLLAR CLIMBED THE DOW JONES INDUSTRIAL AVERAGE GAINED 811 TO 330922 IN ACTIVE TRADING STANDARD & POOR'S 500STOCK INDEX SLIPPED 033 TO 43538 AND THE NASDAQ COMPOSITE INDEX TUMBLED 515 TO 67180 HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAID INVESTORS MAY HAVE BEEN DISHEARTENED BY THE SMALL RISE IN THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT DISCLOSED LAST WEEK ALTHOUGH THE INDEX OF MANUFACTURING ACTIVITY ROSE FOR THE FOURTH CONSECUTIVE MONTH THE INCREASE TO 559 FROM 55 WASN'T PARTICULARLY ENCOURAGING MR JOHNSON SAID IT WAS AN INCREASE BUT NOT A BIG INCREASE IN ADDITION THE US'S MONEY SUPPLY SHOWED A SHARP DECLINE IN THE WEEK ENDED DEC 21 THAT TELLS YOU WE'RE STILL NOT SEEING A RECOVERY IN BANK LENDING AND MONEY GROWTH AND IT'S MONEY THAT DRIVES THE ECONOMY AND THE MARKETS HE SAID WORLDWIDE STOCK PRICES WEAKENED THE DOW JONES WORLD STOCK MARKET INDEX CLOSED AT 9207 DOWN 043 MOREOVER MR JOHNSON ADDED THE STOCK MARKET'S VIGOROUS RALLY IN THE FOURTH QUARTER MAY HAVE PUSHED PRICES TOO HIGH MANY ANALYSTS EXPECT THE ECONOMY TO IMPROVE IN 1993 BUT INVESTORS MAY HAVE BET ON A STRONGER RECOVERY THAN WILL ACTUALLY MATERIALIZE HE SAID THE MARKET'S DISCOUNTED A LOT OF THE GOOD THINGS THAT LIE AHEAD IN 1993 BUT THE FEELING IS IT MAY HAVE GONE TOO FAR TOO FAST DESPITE A STRONG RALLY IN THE US BOND MARKET THAT DROVE LONGTERM INTEREST RATES LOWER CURRENCY TRADERS BOUGHT DOLLARS ON THE BELIEF THAT THE US ECONOMY'S OUTLOOK IS A LOT ROSIER THAN THAT FOR GERMANY OR THE REST OF EUROPE THE MARK WAS ALSO UNDERMINED BY CONCERN THAT GERMAN ECONOMICS MINISTER JUERGEN MOELLEMANN'S SCANDALRELATED RESIGNATION SUNDAY WOULD BE A BLOW TO CHANCELLOR HELMUT KOHL'S GOVERNMENT WHICH HAS ALREADY BEEN ACCUSED OF POORLY MANAGING THE GERMAN ECONOMY NONETHELESS MR MOELLEMANN'S PROBLEMS DIDN'T STOP TRADERS FROM OPENING THE NEW YEAR WITH A RENEWED ASSAULT ON EUROPE'S WEAKER CURRENCIES THE BUNDESBANK AND THE BANK OF FRANCE BOTH SOLD MARKS AND BOUGHT FRANCS TO SUPPORT THE BELEAGUERED FRENCH CURRENCY A LOT OF PEOPLE EXPECT THE FRENCH FRANC TO BE PUSHED BELOW ITS PERMISSIBLE CEILING RATE AGAINST THE DEUTSCHE MARK WITHIN EUROPE'S EXCHANGE RATE MECHANISM SAID BETSY REETZ A VICE PRESIDENT AT NATIONAL WESTMINSTER BANK IN NEW YORK THE ONLY THING THAT COULD HELP THE FRENCH OUT IS IF THE GERMANS LOWER RATES IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 1997 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 888 ISSUES ROSE AND 1046 FELL THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16395 MARKS AND 12535 YEN COMPARED WITH 16209 MARKS AND 12484 YEN THURSDAY 9301050104 930105 PHILADELPHIA SUBURBAN CORP BRYN MAWR PA PHILADELPHIA SUBURBAN CORP SAID ITS MAIN SUBSIDIARY PHILADELPHIA SUBURBAN WATER CO COMPLETED THE ACQUISITION OF TWO WATER SYSTEMS FOR 134 MILLION THE ACQUISITION OF THE WEST WHITELAND SYSTEM FOR 24 MILLION AND UWCHLAN MUNICIPAL AUTHORITY WATER SYSTEMS FOR 11 MILLION HAD BEEN ANNOUNCED LAST SUMMER AND RECEIVED FINAL APPROVAL FROM THE PENNSYLVANIA PUBLIC UTILITY COMMISSION IN DECEMBER THE WATER SYSTEMS WILL SERVE EIGHT TOWNSHIPS IN CHESTER COUNTY PA AND WILL REDUCE RESIDENTS' RELIANCE ON GROUND WATER SUPPLY 9301050103 930105 CORPORATE FOCUS BSN FINDS EASTERN EUROPE EXPANSION HARD TO SWALLOW FRENCH FOOD CONCERN HAS TO TEACH REGION THE ABCS OF CAPITALISM BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL PRAGUE HOPING TO TAKE EASTERN EUROPE'S MARKET BY STORM FRENCH FOOD COMPANY BSN SA IS SPENDING HUNDREDS OF MILLIONS OF FRANCS TO BUILD AND BUY PRODUCTION PLANTS FROM WARSAW TO BUDAPEST THAT'S THE EASY PART THE HARD PART IS MANAGING THEM HERE IN THE FORMER CZECHOSLOVAKIA FOR EXAMPLE BSN AND ITS PARTNER NESTLE SA NOW CONTROL 60 OF THE COOKIE AND CHOCOLATE MARKET THEY WON THEIR DOMINANT POSITION IN FEBRUARY BY BUYING CONTROL OF THE STATE'S MAIN COOKIE AND CHOCOLATE COMPANY BUT WHEN THEY TOOK CONTROL THEY DISCOVERED THAT THE COMPANY'S HANDFUL OF SALESMEN WERE ACCUSTOMED TO MAKING JUST ONE SALE A MONTH TO THE STATE WHOLESALER NOW THAT THE MARKET IS FREE COMPETITORS LIKE MARS INC ARE MOVING IN AND THE SALESMEN MUST QUICKLY LEARN TO SERVICE DOZENS OF ORDERS A WEEK FROM 250 NEW WHOLESALERS BSN WHICH MAKES DANNON YOGURT IS ALSO FIGHTING TO DOMINATE EASTERN EUROPE'S YOGURT MARKET PRODUCING LOCALLY AND DELIVERING WITH A FLEET OF REFRIGERATED TRUCKS BUT SOME STORES THE COMPANY HAS DISCOVERED HAVE THE BAD HABIT OF LEAVING YOGURT BOXES ON RADIATORS OTHERS TURN OFF REFRIGERATOR CABINETS AT NIGHT SAVING ELECTRICITY BUT LETTING PRODUCTS SPOIL THE BIGGEST PROBLEM IS SIMPLY THAT THE CZECHS DON'T YET UNDERSTAND WHAT A MARKET ECONOMY IS LAMENTS MAX BERGER A DUTCH COOKIE EXPERT SENT IN BY BSN TO RUN THE BIG COOKIE AND CHOCOLATE COMPANY COKOLADOVNY AS NO ONE EVER SAID BRINGING CAPITALISM TO EASTERN EUROPE WOULD BE EASY BSN IN FACT HAS FOUND ITSELF USING METHODS IT ORIGINALLY DEVELOPED FOR THIRD WORLD COUNTRIES THE COMPANY DOESN'T EVEN TRY TO TEACH MANAGEMENT TECHNIQUES AT FIRST INSTEAD IT JUST TRIES TO TEACH EMPLOYEES WHAT A MARKET IS WHAT IT MEANS FOR EXAMPLE TO HAVE CUSTOMERS WHO ACTUALLY CAN REFUSE TO BUY YOUR PRODUCTS BECAUSE SOMEONE ELSE'S ARE BETTER FACED WITH THIS SOMETIMES KAFKAESQUE TASK SOME EUROPEAN COMPANIES LIKE CADBURY SCHWEPPES PLC HAVE DECIDED AGAINST PRODUCING IN EASTERN EUROPE FOR NOW MOST BIG FOOD COMPANIES HOWEVER ARE TAKING THE PLUNGE WHEN PEOPLE TELL ME ABOUT THE DANGERS OF EASTERN EUROPE I AM REMINDED OF SPAIN SAYS ANTOINE RIBOUD BSN'S EBULLIENT 74YEAROLD CHAIRMAN AFTER FRANCO'S DEATH EVERYONE TOLD ME TO GO SLOW THERE AND PREPARE FOR POLITICAL AND ECONOMIC CRISIS TODAY SPAIN'S ECONOMY IS ONE OF EUROPE'S MOST DYNAMIC AND I AM DELIGHTED TO BE THERE I EXPECT THE SAME SUCCESS IN EASTERN EUROPE BSN IS GAMBLING MORE ON EASTERN EUROPE THAN MOST BIGGER COMPANIES SUCH AS NESTLE AND UNILEVER NV HAVE DEVELOPED A STRONG PRESENCE IN THE US WITH ONE OR TWO EXCEPTIONS SUCH AS ITS EVIAN WATER AND DANNON YOGURT BSN HASN'T NOW IT'S LARGELY BYPASSING THE SLOWGROWING US MARKET IN FAVOR OF EASTERN EUROPE AND ASIA EASTERN EUROPEANS ARE HUNGRY FOR HIGHQUALITY WESTERNSTYLE FOOD BSN SAYS THAT ITS CZECH AND HUNGARIAN OPERATIONS ARE ALREADY PROFITABLE BARELY A YEAR AFTER TAKING CONTROL ALTHOUGH PEOPLE'S PURCHASING POWER HAS FALLEN AND SOME HEAVIER INDUSTRIES ARE SUFFERING FOOD SALES ARE GROWING THE DIVISION OF CZECHOSLOVAKIA INTO TWO NATIONS COMPLICATES THINGS BUT BSN SAYS PRODUCTION WON'T BE SEVERELY AFFECTED BECAUSE ITS MAIN FACTORIES ARE ALL ON THE CZECH SIDE TO BUILD SALES HOWEVER COMPANIES LIKE BSN MUST MAKE HARDCURRENCY INVESTMENTS THOSE OUTWEIGH PROFITS WHICH COME IN SOFT CURRENCIES AND TEACHING LOCALS TO MEET WESTERN PRODUCTION STANDARDS IS NO PIECE OF CAKE AT ONE OF THE PRAGUE COOKIE FACTORIES ACQUIRED BY BSN AND NESTLE FOR EXAMPLE BOREDLOOKING WOMEN IN STAINED WHITE COATS STILL FEED DOUGH INTO BAKING MACHINES BY HANDSCOOPING IT OUT OF VATS WITH THEIR FINGERS AT A MEETING WITH SECURITIES ANALYSTS LAST YEAR BSN VICE CHAIRMAN GEORGES LECALLIER COMPARED THE NATION'S FACTORIES WITH THOSE THAT EXISTED IN FRANCE AT THE END OF WORLD WAR II OFFENDED BY A REPORTER'S QUESTION ABOUT THE MACHINES' AGES WHICH TURN OUT TO BE TWO DECADES AND MORE THE CZECH PLANT MANAGER POINTS TO HER PRIDE AND JOY A SPARKLING NEW MACHINE TO WASH THE PLASTIC TUBS THAT TRANSPORT DOUGH AND FRESHLY BAKED COOKIES IT SEEMS AN ODD MACHINE TO BUY SO SOON AFTER A TAKEOVER BUT THE DECISION IS EASILY EXPLAINED IN THE PAST THEY DIDN'T WASH THOSE TUBS FOR YEARS SAYS MR BERGER THE DUTCH COOKIE EXPERT YOU'D FIND THEM ENCRUSTED WITH FAT AND OLD COOKIES THE AGING FACTORY'S FLOORS HAVE BEEN PATCHED SO OFTEN AND ARE SO CRACKED THAT THEY ARE ALMOST IMPOSSIBLE TO KEEP CLEAN MR BERGER ADDS ANOTHER BIG PROBLEM IS KEEPING MACHINERY REPAIRED ACCUSTOMED TO DELAYS AND PARTS SHORTAGES REPAIRMEN DON'T BELIEVE IN SPEED GETTING SOMETHING FIXED CAN TAKE WEEKS THEN THERE IS THE CHALLENGE OF TRAINING AND RETRAINING MANAGERS AND FOR THAT BSN AND NESTLE ARE TRYING AN EXPERIMENT AT A VACATION CENTER NEAR THE MOLDAU RIVER 45 MINUTES OUTSIDE PRAGUE THEY ARE ASKING SENIOR MANAGERS TO SPEND FOUR DAYS PLAYING A BOARD GAME IT LOOKS A BIT LIKE MONOPOLY RUN BY A SMALL COMPUTER THE MANAGERS FORM TEAMS WITH LIMITED MONEY FOR PLANTS MARKET STUDIES WAGES AND THE LIKE THEY WIN BY SELLING THINGS CUSTOMERS WANT AND ARE PENALIZED IF THEY OVERINVEST OR UNDERCUT WAGES WHICH CAN CAUSE STRIKES AT THE END OF ONE SUCH SEMINAR MR LECALLIER MEETS WITH NEWLY TRAINED MANAGERS THE EXECUTIVE A MAN SO FASCINATED BY MARKETING THAT HE SPENDS MOST SATURDAY MORNINGS VISITING SUPERMARKETS AND WATCHING PEOPLE SHOP KEEPS HIS ADVICE SIMPLE KEEP PRODUCTS FRESH AND TASTY HE SAYS USE CONVENIENT PACKAGING INNOVATE AS HE FINISHES A HAND GOES UP YOU HAVE SAID WE SHOULD TRY TO UNDERSTAND THE NEEDS AND DESIRES OF CONSUMERS SAYS A CZECH MANAGER MR LECALLIER NODS AND SMILES MY QUESTION IS HOW DO WE DETERMINE WHAT THOSE ARE THE ROOM IS SILENT AND MR LECALLIER STARES FOR A MOMENT IN DISBELIEF THEN HE STARTS AGAIN SPEAKING IN EVEN SIMPLER TERMS ABOUT MONITORING SALES CONDUCTING STUDIES AND DOING ALL THE OTHER THINGS THE MANAGERS ARE SUPPOSED TO HAVE SPENT THE PREVIOUS FOUR DAYS LEARNING SOME LOCAL MANAGERS FIND BASIC MARKET CONCEPTS ALMOST IMPOSSIBLE TO COMPREHEND OTHERS ARE RELUCTANT TO EXERCISE INDIVIDUAL INITIATIVE INITIALLY BSN SENT IN MORE EXPATRIATE MANAGERS THAN PLANNED AND THERE'S ANOTHER TWOPRONGED THREAT THAT COMPANIES LIKE BSN DON'T LIKE TO DISCUSS POLITICS AND CORRUPTION SOME SENIOR MANAGERS AT ANY FORMER STATE COMPANY ARE SURE TO BE OLD COMMUNISTS WHO OPPOSE WESTERN PRACTICES OTHERS ARE CAUGHT IN A SYSTEM OF BRIBES AND KICKBACKS THE SAME GOES FOR LABOR LEADERS FINDING AND ELIMINATING CORRUPTION IS A BIG PROBLEM FOR ANY WESTERN COMPANY IN EASTERN EUROPE IN EASTERN EUROPE WE ARE HIRING YOUNG PEOPLE STRAIGHT OUT OF UNIVERSITY SAYS A MANAGER AT ANOTHER BIG WESTERN FOOD AND BEVERAGE CONCERN WE FIGURE THAT IT IS BETTER TO HAVE SOMEONE WEAK ON EXPERIENCE THAN SOMEONE WHO HAS BEEN POLLUTED ETHICALLY NOODLES AND SAUCES JOINTLY ACQUIRED THE COUNTRY'S BIGGEST COOKIE AND CHOCOLATE COMPANY 9301050102 930105 MIDWEST GRAIN PLANS EXPANSION ATCHISON KAN MIDWEST GRAIN PRODUCTS INC SAID ITS BOARD APPROVED ITS LARGEST EVER EXPANSION PROJECT WHICH WILL DOUBLE THE COMPANY'S ALCOHOL PRODUCTION CAPACITY BY 1995 AND WHEAT GLUTEN CAPACITY BY 1997 THE GRAINPROCESSING COMPANY DECLINED TO SPECIFY THE EXACT COST OF THE EXPANSION BUT INDICATED IT WOULD BE IN EXCESS OF 40 MILLION THE PROJECT IS EXPECTED TO BEGIN THIS MONTH AT MIDWEST GRAIN'S PEKIN ILL PLANT MIDWEST GRAIN REPORTED SALES OF 1745 MILLION FOR FISCAL 1992 ENDED JUNE 30 INCLUDING ALCOHOL PRODUCTS SALES OF 102 MILLION AND WHEAT GLUTEN SALES OF 469 MILLION 9301050101 930105 POLITICS & POLICY CLINTON IS CLOSE TO NAMING KEY AIDES FOR ECONOMIC AND FOREIGN POLICY POSTS BY GERALD F SEIB AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL PRESIDENTELECT CLINTON IS CLOSE TO FILLING SOME SENSITIVE SUBCABINET JOBS IN FOREIGN POLICY AND ECONOMICS AND HAS SCHEDULED A MEETING WITH TOP AIDES THIS WEEK TO BEGIN MAKING DECISIONS ON ECONOMIC POLICY THOUGH HE FULFILLED HIS PROMISE TO FINISH NAMING HIS CABINET BY CHRISTMAS MR CLINTON HAS NAMED ONLY A FEW OF HIS SELECTIONS FOR THE SECOND TIER OF ADVISERS MANY OF WHICH WIELD SUBSTANTIAL POWER IN RUNNING THE DAYTODAY OPERATIONS OF GOVERNMENT AGENCIES FOR INSTANCE MR CLINTON IS EXPECTED TO NAME PETER TARNOFF PRESIDENT OF THE COUNCIL ON FOREIGN RELATIONS TO THE INFLUENTIAL POST OF UNDERSECRETARY OF STATE FOR POLITICAL AFFAIRS THAT JOB IS THE THIRDRANKING POST IN THE STATE DEPARTMENT BENEATH THE SECRETARY OF STATE AND HIS DEPUTY AND TRADITIONALLY IS FILLED BY A CAREER FOREIGNSERVICE OFFICER WHO HAS BROAD RESPONSIBILITIES FOR OVERSEEING THE DAILY WORK OF THE US DIPLOMATIC CORPS MR TARNOFF WAS A CAREER FOREIGN SERVICE OFFICER FROM 1961 UNTIL 1982 LIKE SECRETARY OF STATEDESIGNATE WARREN CHRISTOPHER MR TARNOFF WORKED AS A TOP STATE DEPARTMENT AIDE IN THE CARTER ADMINISTRATION ANOTHER POTENTIAL CHOICE FOR A TOP POSITION IN THE STATE DEPARTMENT IS DEMOCRATIC LAWYER AND CONSULTANT TOM DONILON WHO ALSO COULD GET A SENIOR JOB IN THE WHITE HOUSE MR DONILON IS CLOSE TO MR CHRISTOPHER AND PRACTICES IN MR CHRISTOPHER'S LAW FIRM IN THE TRADE AREA THE CLINTON TRANSITION TEAM HAS PUT TOGETHER A LIST OF ABOUT 20 CANDIDATES TO FILL THREE SLOTS FOR DEPUTY US TRADE REPRESENTATIVES PLUS THE GENERAL COUNSEL FOR THE TRADE REPRESENTATIVE'S OFFICE AMONG THOSE UNDER CONSIDERATION SAID PEOPLE FAMILIAR WITH THE DELIBERATIONS ARE MICHAEL WESSEL A TRADE ADVISER TO HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO BARRY CARTER WHO HEADS THE TRANSITION TEAM'S TRADE EFFORTS AND RUFUS YERXA THE CURRENT DEPUTY TRADE REPRESENTATIVE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE TRADE REMAINS ONE OF THE MOST CONTENTIOUS ISSUES FOR THE NEW ADMINISTRATION WITH DEMOCRATS SPLIT BETWEEN FREE TRADERS AND THOSE WHO FAVOR MORE MANAGED TRADE INDEED IT ISN'T CLEAR WHO WILL MAKE TRADE POLICY GIVEN THAT THE NOMINEE FOR THE TOP SLOT MICKEY KANTOR HAS NO EXPERIENCE IN INTERNATIONAL TRADE ISSUES SOME OF THE PEOPLE BEING CONSIDERED FOR POSITIONS IN HIS OFFICE ARE ALSO BEING CONSIDERED FOR TRADE POSITIONS IN THE NATIONAL ECONOMIC COUNCIL WHICH WILL BE HEADED BY ROBERT RUBIN YESTERDAY CLINTON TRANSITION OFFICIALS WERE CALLING TRADE EXPERTS TO TRY TO FIND THE NAMES OF MORE BLACKS AND HISPANICS TO CONSIDER FOR TRADE POSITIONS MR CLINTON IS ALSO BELIEVED TO BE SORTING OUT HIS WHITE HOUSE STAFF THIS WEEK A HOST OF AIDES INCLUDING COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS AND TRANSITION OFFICIAL MARK GEARAN AS WELL AS DEMOCRATIC CONSULTANTS PAUL BEGALA AND MR DONILON COULD PLAY IMPORTANT ROLES IN THE WHITE HOUSE THEIR DUTIES HAVEN'T BEEN DECIDED THOUGH MR STEPHANOPOULOS IS EXPECTED TO REMAIN IN COMMUNICATIONS FOR THE JOB OF ASSISTANT TREASURY SECRETARY FOR TAX POLICY NEW YORK ATTORNEY BERNARD AIDINOFF IS BEING GIVEN CAREFUL CONSIDERATION BY THE CLINTON CAMP ACCORDING TO DEMOCRATIC SOURCES MR AIDINOFF WHO IS WITH THE FIRM OF SULLIVAN & CROMWELL WAS CHAIRMAN OF THE AMERICAN BAR ASSOCIATION'S TAX SECTION IN THE EARLY 1980S AND HAS BEEN A MEMBER OF AN ADVISORY PANEL TO THE COMMISSIONER OF THE INTERNAL REVENUE SERVICE PEOPLE FAMILIAR WITH MR AIDINOFF SAY HE MAY BE AN APPEALING CHOICE FOR THE NEW ADMINISTRATION BECAUSE HE WILL BE 64 AND PROBABLY WOULDN'T RETURN TO PRACTICING LAW AFTER GOVERNMENT SERVICE THAT MEANS HE WOULDN'T HAVE ANY PROBLEM ADHERING TO THE FIVEYEAR LOBBYING BAN THAT MR CLINTON HAS IMPOSED ON HIS TOP AIDES AMONG THE OTHER POSSIBLE CANDIDATES FOR THE TREASURY TAX POST IS HANK GUTMAN THE CHIEF OF STAFF OF THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION AND A FORMER TREASURY OFFICIAL FOR THE COUNCIL OF ECONOMIC ADVISERS MR CLINTON IS EXPECTED TO NAME ALAN BLINDER AN ECONOMIST AT PRINCETON UNIVERSITY TO SERVE ON THE THREEMEMBER PANEL MR BLINDER WENT TO GRADUATE SCHOOL AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WITH LAURA TYSON THE UNIVERSITY OF CALIFORNIA ECONOMIST WHO IS TO BE CHAIRMAN OF THE COUNCIL AS THE CLINTON TRANSITION CONTINUES TO FILL POSITIONS FINDING JOBS FOR FORMER CAMPAIGN OFFICIALS HAS BECOME A CHALLENGE SOME CAMPAIGN WORKERS HAVE BEEN TOLD THEY WILL PROBABLY GET SIXMONTH APPOINTMENTS AT VARIOUS AGENCIES WHICH WOULD GIVE THEM TIME TO BECOME FAMILIAR WITH THE GOVERNMENT AND FIND A PERMANENT POST ONE CAMPAIGN OFFICIAL SLATED FOR A JOB IS NEW YORK ATTORNEY KEVIN THURM WHO IS EXPECTED TO BE NAMED CHIEF OF STAFF TO HEALTH AND HUMAN SERVICES SECRETARYDESIGNATE DONNA SHALALA MR THURM WAS NEW YORK STATE DIRECTOR FOR THE CLINTON CAMPAIGN AND AN OXFORD CLASSMATE OF MR STEPHANOPOULOS SUGGESTING THAT THE WHITE HOUSE WILL HAVE DIRECT INFLUENCE IN THE OPERATION OF HHS ALSO AT HHS DEFEATED NEW YORK REP THOMAS DOWNEY IS UNDER CONSIDERATION FOR A NEW POSITION AS DEPUTY FOR HUMAN SERVICES AND STUART ALTMAN A CLINTON CAMPAIGN ADVISER AND TRANSITION OFFICIAL IS BEING CONSIDERED FOR A POST THAT WOULD DIRECT HEALTH SERVICES AT THE DEPARTMENT MR CLINTON ALSO WILL BE TURNING THIS WEEK TO THE TASK OF SETTING HIS ECONOMIC POLICIES MORE FIRMLY MR STEPHANOPOULOS SAID MR CLINTON'S ECONOMIC APPOINTEES WILL GATHER IN LITTLE ROCK WITH THE PRESIDENTELECT ON THURSDAY AT THE MEETING MR CLINTON AND HIS ADVISERS WILL DISCUSS THE HARD CHOICES ON SPENDING THAT MUST BE MADE TO IMPLEMENT HIS PROGRAMS WHILE ALSO CUTTING THE BUDGET DEFICIT MR STEPHANOPOULOS SAID THE CLINTON TEAM WILL BE REVIEWING ESTIMATES OF THE FEDERAL DEFICIT THE CLINTON TEAM WANTS TO GET A FINAL FIX ON IT I MEAN IT'S A MOVING NUMBER ALL OF THE TIME MR STEPHANOPOULOS SAID HE ADDED THAT MR CLINTON WILL BE TALKING WITH HIS ADVISERS BY TELEPHONE AS HE PREPARES FOR THE THURSDAY MEETING 9301050100 930105 LEISURE & ARTS BOOKSHELF HISTORY WORLD AND FAMILY BY LEE LESCAZE SUSAN GRIFFIN BELIEVES THAT EVERY LIFE IN SOME WAY AFFECTS EVERY OTHER LIFE ACROSS TIME AND SPACE I DO NOT SEE MY LIFE AS SEPARATE FROM HISTORY IN MY MIND MY FAMILY'S SECRETS MINGLE WITH THE SECRETS OF STATESMEN AND BOMBERS SHE WRITES THUS IT FOLLOWS THAT THE ALCOHOLISM OF HER MOTHER AND THE FAILURES OF HER FATHER ARE PART OF THE HISTORY OF THE SECOND WORLD WAR AND THE COLD WAR THAT FOLLOWED THE HUMAN CAPACITY FOR DENIAL PERMITS BARBAROUS BEHAVIOR TOWARD PUBLIC ENEMIES AS WELL AS WITHIN FAMILIES MS GRIFFIN ARGUES WHAT ONE REFUSES TO SEE NEVER VANISHES AND OVERCOMING DENIAL IS VITAL IN BOTH PRIVATE AND PUBLIC LIFE SHE ALSO BELIEVES THAT CONCEPTS OF MASCULINITY AND WARRIORLIKE BEHAVIOR HAVE LONG BEEN INTERTWINED IN MALES WITH UNFORTUNATE CONSEQUENCES THAT FEMALE NATURE IS LESS MARTIAL THAT THE FIREBOMBING OF DRESDEN THE ATOMIC BOMBING OF HIROSHIMA AND ADOLF HITLER'S CAMPAIGN TO EXTERMINATE JEWS WERE ACTS OF APPALLING VIOLENCE AGAINST CIVILIANS AS ALL THIS INDICATES THE PROBLEM WITH A CHORUS OF STONES IS THAT IT RICOCHETS IN MS GRIFFIN'S ALMOST FREEASSOCIATION STRUCTURE FROM THE DUBIOUS TO THE OBVIOUS WITH TOO FEW INTERESTING BOUNCES IN BETWEEN MUCH THAT SHE REPORTS HAS BEEN BETTER REPORTED ELSEWHERE FOR EXAMPLE SHE NOTES AT LENGTH THAT WORLD WAR I DRASTICALLY CHANGED THE WORLD A CHORUS OF STONES IS PRESENTED HOWEVER AS A RADICALLY NEW APPROACH AND MS GRIFFIN A FEMINIST ESSAYIST POET AND TEACHER WHO HAS WRITTEN MORE THAN 20 BOOKS HAS MANY IMPASSIONED ADMIRERS HER BOOKS INCLUDING THIS ONE CLEARLY HAVE GREAT RESONANCE FOR SOME READERS THE MOST POWERFUL PORTIONS OF THIS BOOK ARE THE MOST PERSONAL THE MYSTERIES AND SADNESSES OF HER FAMILY WEIGH ON HER MIND SHE HAS OVERCOME MUCH AS A CHILD I SAW EVERYONE LEAVE ME IN ONE DAY MY PARENTS SEPARATED I WAS SENT TO MY GRANDMOTHER AND MY SISTER TO MY GREATAUNT MY MEMORY IS OF AN ENDLESS CHILL DESCENDING DURING THE EIGHT YEARS SHE WORKED ON A CHORUS OF STONES SHE WAS SERIOUSLY ILL WITH CHRONIC FATIGUE SYNDROME HER DISEASE HAS SIMILARITIES TO SHELL SHOCK IT HELPED HER UNDERSTAND BATTLEFIELD SURVIVORS SHE DESCRIBES THE EFFECTS SO WELL THAT WHEN THE DISEASE LIFTS A READER SHARES HER FEELING OF HEALTH RESTORED UNFORTUNATELY MS GRIFFIN'S CONCERN WITH HER OWN LIFE SOMETIMES MAKES A CHORUS OF STONES SEEM MORE LIKE THERAPY FOR THE AUTHOR THAN A WORK WRITTEN FOR STRANGERS JULY 13 DEPARTED AT 1150 AND ARRIVE SAFELY ON THE BUS IN L WE HAVE A VERY PRETTY HOUSE IN THE AFTERNOON WE DRINK COFFEE AT THE COFFEE HOUSE BANALITY IS MS GRIFFIN'S DEFAULT MODE GERMANS SHE FINDS HAVE ANGST OR AFTER GERMAN REUNIFICATION IT IS DIFFICULT TO SAY HOW THINGS WILL TURN OUT BUT ONE THING IS CERTAIN THE OLD OPPOSITION BETWEEN EAST AND WEST HAS BROKEN DOWN OR MY PERSONAL FAVORITE LOOKING AT THE SURFACE OF THE SEA ONE WOULD NEVER GUESS AT ALL THAT LIES UNDERNEATH MS GRIFFIN TETHERS HER RAMBLING MEDITATION TO A HANDFUL OF HISTORICAL FIGURES IN ADDITION TO HER FAMILY THESE INCLUDE PHYSICIST ENRICO FERMI NAZI SS COMMANDER HEINRICH HIMMLER MOHANDAS K GANDHI HUGH TRENCHARD THE ROYAL AIR FORCE OFFICER WHO DEVELOPED THE TACTIC OF BOMBING URBAN CENTERS CHARLOTTE SALOMON AN ARTIST KILLED AT AUSCHWITZ AND ERNEST HEMINGWAY ONCE AGAIN MS GRIFFIN OFFERS LITTLE ANECDOTE OR INSIGHT ABOUT HER CHARACTERS WITH THE EXCEPTION OF THE LESSWELLKNOWN SALOMON THAT IS FRESH OR INTRIGUING IT IS NO SURPRISE THAT HIMMLER WAS A PHYSICAL WEAKLING NOR THAT IN THE REALM OF SELFABNEGATION GANDHI WAS A WORLD CHAMPION MS GRIFFIN SEEMS SURPRISED THAT TRENCHARD A BLUSTERING MAN OF EXTRAORDINARY PHYSICAL COURAGE AND EXTRAORDINARILY LITTLE FINESSE HARBORED FEELINGS OF DOUBT ABOUT THE ACTS OF WAR HE DESIGNED JUST BECAUSE TRENCHARD SAID THAT THE LUXURY OF A CONSCIENCE HAS NO PLACE IN THE ARMY DOESN'T MEAN HE DIDN'T HAVE ONE IT IS HARDLY SURPRISING THAT EVEN THE MOST WARRIORLIKE OF MEN HAVE SECRET DOUBTS AND FEARS SHE IS ALSO CARELESS FOR EXAMPLE SHE MISIDENTIFIES THE MAGAZINE THAT PUBLISHED HEMINGWAY'S THE OLD MAN AND THE SEA MISDESCRIBES THE METHOD OF HEMINGWAY'S SUICIDE AND GIVES THE WRONG MILITARY RANK OF THE COMMANDER PROSECUTED FOR THE MASSACRE AT MY LAI MS GRIFFIN'S TREATMENT OF HEMINGWAY IS NOT ONLY AN UNORIGINAL ATTACK ON HIS MALE POSTURING BUT A PARTICULARLY SHABBY ONE NEVER BEFORE HAS HEMINGWAY BEEN WEIGHED AGAINST HITLER AS HE IS IN MS GRIFFIN'S NONSENSICAL PARALLEL SHE NOTES THAT HEMINGWAY WAS ANTISEMITIC THIS LEADS HER TO NOTICE A RESEMBLANCE BETWEEN THE TWO SOONTOBEENEMIES THE THIRD REICH AND THE ALLIES OUR SIDE HAD ANTISEMITE HEMINGWAY THEIR SIDE HAD ANTISEMITES ALSO MATTERS OF DEGREE DISAPPEAR IN MS GRIFFIN'S HANDS ALL WARS ARE EQUALLY DAMNABLE 9301050099 930105 CREDITCARD FIRMS WOO SINGAPOREANS WITH CARS CONDOS AMERICAN EXPRESS VISA TURN TO LUCKY DRAWS' IN EFFORT TO INCREASE USE OF PLASTIC BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE AMERICAN EXPRESS OFFERED A PORSCHE VISA INTERNATIONAL COUNTERED WITH A MORE EXPENSIVE MERCEDES THEN AMERICAN EXPRESS PUT A THREEBEDROOM CONDOMINIUM UP FOR GRABS SPECIAL GIVEAWAYS ARE OLD HAT IN THE CREDIT AND CHARGECARD INDUSTRY BUT CARD MARKETERS IN SINGAPORE ARE SETTING NEW STANDARDS FOR SUCH MARKETING EFFORTS WITH THEIR SPLASHY PROMOTIONS WITH GROWTH IN THE NUMBER OF CREDIT AND CHARGE CARDS ISSUED SLOWING DOWN CARD COMPANIES ARE CONCENTRATING THEIR MARKETING ON GETTING CARDHOLDERS TO USE THE PLASTIC IN THEIR WALLETS MORE OFTEN WHILE CARD USE IS ON THE RISE ISSUERS SAY CASH IS STILL BY FAR THE DOMINANT METHOD OF PAYMENT CHARGE AND CREDIT CARDS ACCOUNT FOR ABOUT 10 OF CONSUMER PURCHASES IN SINGAPORE COMPARED WITH 20 IN THE US LIMITS ON CARDS THE NUMBER OF CARDS ISSUED IN SINGAPORE DOUBLED TO MORE THAN ONE MILLION OR ABOUT ONE FOR EVERY THREE SINGAPOREANS BETWEEN 1988 AND 1991 BUT THE GOVERNMENT WORRIED ABOUT THE RAPID GROWTH PLACED LIMITS ON THE CARDS IN NOVEMBER 1991 THE CENTRAL BANK RAISED THE MINIMUM ANNUAL INCOME REQUIRED TO USE A CARD TO 30000 SINGAPORE DOLLARS US18337 FROM S24000 CUTTING THE NUMBER OF POTENTIAL CARDHOLDERS THE CENTRAL BANK ALSO CAPPED CREDIT LIMITS ON CREDIT CARDS AT TWO MONTHS' SALARY SOME ISSUING BANKS HAD ALLOWED CREDIT LIMITS TO WIDEN TO FIVE MONTHS' SALARY THE NEW RULES HAD THE DESIRED EFFECT AFTER GROWING NEARLY 30 IN 1991 THE NUMBER OF CARDS ISSUED INCREASED JUST 6 FOR THE FIRST NINE MONTHS OF 1992 FROM A YEAR EARLIER CREDIT CARDS ALLOW USERS TO ROLL OVER THEIR OUTSTANDING BALANCES BY PAYING INTEREST WHILE BALANCES ON CHARGE CARDS MUST BE PAID IN FULL AT THE END OF EACH BILLING PERIOD CREDIT AND CHARGECARD ISSUERS EARN MONEY FROM ANNUAL FEES CHARGED TO CARDHOLDERS AND FROM FEES CHARGED TO MERCHANTS USUALLY A FIXED PERCENTAGE OF EACH SALE USING A CARD IN ADDITION CREDITCARD ISSUERS EARN MONEY FROM THE INTEREST PAYMENTS BY CARDHOLDERS ON THEIR OUTSTANDING BALANCES EXPRESS INTERNATIONAL INC A UNIT OF AMERICAN EXPRESS CO OPENED THE MARKETING BATTLE IN JULY WITH A CONTEST FOR A PORSCHE 968 SPORTS CAR VALUED AT S320000 COUPLED WITH LESSVALUABLE PRIZES AND GIFTS THE PROMOTION RAN TO SEPTEMBER VISA INTERNATIONAL REPLIED IN NOVEMBER WITH A MERCEDESBENZ 300SL VALUED AT S370000 IN A SWEEPSTAKES THAT RUNS UNTIL FEB 28 VISA'S PROGRAM WAS BARELY OUT OF THE GARAGE WHEN AMERICAN EXPRESS WHICH HAS 170000 CARDS ISSUED IN SINGAPORE UNVEILED ITS CONDO CONTEST THE CHARGECARD CONCERN WILL GIVE AWAY A NEW FURNISHED APARTMENT VALUED AT ABOUT S700000 TO S800000 HOLDERS OF SINGAPOREDOLLAR AMERICAN EXPRESS CARDS GET ONE NUMBER FOR THE LUCKY DRAW FOR EACH S100 BILLED TO THE CARD BETWEEN NOV 15 AND MAY 15 THE VISA CONTEST OPERATES IN A SIMILAR MANNER THE LUCKY DRAW IS A POPULAR MARKETING TOOL IN SINGAPORE AND ELSEWHERE IN ASIA AND WHILE AMERICAN EXPRESS IS THE ONLY CONCERN GIVING AWAY A HOUSE IN A SWEEPSTAKES TIED TO CARD USE IT ISN'T THE ONLY SUCH PRIZE ON OFFER OVERSEACHINESE BANKING CORP IS GIVING AWAY A CONDO A MAZDA 929 SEDAN GOLD WATCHES AND CASH IN A LUCKYDRAW PROGRAM THAT ENDS IN MARCH BANK CUSTOMERS GET ONE CHANCE TO WIN FOR EVERY S250 ON DEPOSIT LUCKY DRAWS WORK WELL IN OUR MARKETPLACE SAYS DAVID ONG A MARKETING MANAGER AT VISA INTERNATIONAL IN SINGAPORE WONG TING MEI A MANAGER AT DEVELOPMENT BANK OF SINGAPORE LTD'S CREDITCARD UNIT A VISA AND MASTERCARD ISSUER SAYS THE VISA CONTEST HAS GENERATED QUITE A FAIR BIT OF INTEREST FROM THE BANK'S CARD CUSTOMERS I THINK LUCKY DRAWS ARE A GOOD WAY OF PROMOTING YOUR PRODUCT IN SINGAPORE SHE SAYS THE RESPONSE IS ALWAYS GOOD VISA'S MEMBERS HAVE ISSUED ABOUT 700000 CARDS IN SINGAPORE MR ONG SAYS VISA DOESN'T HAVE ANY IMMEDIATE PLANS TO MATCH AMERICAN EXPRESS CONDO FOR CONDO WE WANT TO LOOK AT OTHER ANGLES MR ONG SAYS MASTERCARD INTERNATIONAL HAS SO FAR STAYED OUT OF THE SWEEPSTAKES RACE IN SINGAPORE WE ARE EVALUATING THE BENEFITS OF SUCH PROGRAMS SAYS BRUCE CONVISSAR VICE PRESIDENT MARKETING FOR THE ASIANPACIFIC REGION AT MASTERCARD HE SAYS THAT WHILE A LUCKY DRAW IS AN INTERESTING MARKETING PROPOSITION IT'S HARD TO SAY IF YOU GET VALUE FROM SUCH A PROMOTION SINGAPORE'S HOLIDAY SEASON WHICH LASTS THROUGH THE LUNAR NEW YEAR AT THE END OF JANUARY IS THE PEAK SPENDING SEASON SO IT ISN'T A SURPRISE THAT VISA AND AMERICAN EXPRESS LAUNCHED THEIR LATEST SWEEPSTAKES IN NOVEMBER THE CREDIT AND CHARGECARD INDUSTRY IS STILL AT A FAIRLY EARLY STAGE OF DEVELOPMENT IN MOST OF ASIA BUT IT IS GROWING RAPIDLY MASTERCARD INTERNATIONAL HAS ABOUT 35 MILLION CARDS ISSUED IN ASIA OF WHICH JAPAN ACCOUNTS FOR 25 MILLION EXCLUDING JAPAN MASTERCARD'S CHARGE VOLUME IN ASIA WAS UP MORE THAN 55 LAST YEAR FROM 1991 SAYS MR CONVISSAR THERE IS PLENTY OF OPPORTUNITY FOR GROWTH HE SAYS 9301050098 930105 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CELL GENESYS INC FOSTER CITY CALIF AN INITIAL OFFERING OF THREE MILLION COMMON SHARES VIA UNDERWRITERS LED BY ROBERTSON STEPHENS & CO INVEMED ASSOCIATES INC AND OPPENHEIMER & CO ROUSE CO AN OFFERING OF 100 MILLION OF 10YEAR PUBLIC SENIOR DEBT VIA GOLDMAN SACHS & CO AND ALEX BROWN & SONS INC WATSCO INC AN OFFERING OF 1200000 SHARES OF CLASS A COMMON STOCK VIA UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC 9301050097 930105 DEVELOPMENT BANK LOOKS AT UZBEKISTAN BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ABOARD HIS PLANE TO PARIS JACQUES ATTALI PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PULLS OUT HIS MOST INTRIGUING DISCOVERY OF A 2 1/2DAY JAUNT THROUGH THE CENTRAL ASIAN REPUBLIC OF UZBEKISTAN THERE'S SOMETHING ABOUT THIS CARD THAT IS VERY INTERESTING AND VERY OBVIOUS SAYS MR ATTALI PLEASED AT HIS PERCEPTION THE NAME OF THE COMPANY AND THE NAME OF THE MAN ARE THE SAME THIS ISN'T SUPPOSED TO BE MR RAKHIMOVICH'S FACTORY EMPLOYS SEVERAL THOUSAND WORKERS AND ACCORDING TO THE CENTRAL GOVERNMENT IN TASHKENT FACTORIES OF SUCH SIZE ARE STILL OWNED BY THE STATE THEY HAVE JUST BEEN MADE JOINTSTOCK COMPANIES WITH THE INTENTION OF SPREADING OWNERSHIP AMONG THE WORKERS BUT AT A CLAMOROUS MEETING THE DAY BEFORE IN SAMARKAND INVOLVING MR ATTALI'S BANK LOCAL BUSINESSMEN AND UZBEK GOVERNMENT OFFICIALS MR RAKHIMOVICH DEFIANTLY DECLARED THAT IF RICH ENOUGH HE COULD OWN 51 OF HIS FACTORY UNDER THE NEW RULES HE WOULDN'T SAY IF HE ALREADY DOES DURING A VOCIFEROUS ARGUMENT BETWEEN MR RAKHIMOVICH AND UZBEKISTAN'S DEPUTY PRIME MINISTER BAKHTIJR HAMIDOV THE GOVERNMENT OFFICIAL BARKED THAT CONTROL OF AN ENTERPRISE BY ONE PERSON IS BAD AS MR ATTALI FOUND OUT DESPITE EFFORTS BY THE CENTRAL GOVERNMENT TO MAINTAIN CONTROL A SORT OF GRASSROOTS PRIVATIZATION IS SPROUTING IN UZBEKISTAN THE EXTENT OF IT ISN'T KNOWN BUT JUDGING BY THE ENTHUSIASM OF THE LIKES OF MR RAKHIMOVICH THE IDEA OF OWNING YOUR OWN COMPANY OR AT LEAST HAVING IT NAMED AFTER YOU IS A COMPELLING ONE WHILE GOVERNMENT OFFICIALS OFTEN DRAG THEIR FEET NEW ENTREPRENEURS ARE THE ONES PUSHING THE PROCESS AT THE MEETING IN SAMARKAND HEAD AFTER HEAD OF ENTERPRISES PRESENTED PROPOSALS TO ELICIT MONEY FROM MR ATTALI'S BANK THERE WERE PROJECTS FOR COTTON PROCESSING TEXTILES TOURIST HOTELS AND MORE AND THE BUSINESSMEN DEMANDED WHAT ABOUT THAT CREDIT LINE FROM THE EBRD FOR 100 MILLION EUROPEAN CURRENCY UNITS 1222 MILLION THAT THEY HAD HEARD ABOUT WE HAVEN'T AGREED TO THAT WE ARE WORKING ON IT REPLIED MR ATTALI FIRST THE EBRD NEEDS TO FIND A LOCAL BANK TO WORK WITH THEN PROJECTS THAT MODERNIZE SECTORS CAPABLE OF PRODUCING EXPORTS AND NEW JOBS WILL BE GIVEN PRIORITY IT WILL BE MONTHS BEFORE THE MONEY IS AVAILABLE HE SAID THE DRAMATIC INTEREST OF THE UZBEKS IS REMARKABLE SAYS MAHIR BABAEV POLITICAL COUNSELOR TO THE EBRD BUT AT THE SAME TIME THEY AREN'T PRESENTING BANKABLE PROJECTS THEY DON'T YET KNOW WHAT BANKABLE IS HE SAYS LIKE LEADING OFFICIALS FROM OTHER REPUBLICS OF THE FORMER SOVIET UNION THOSE IN UZBEKISTAN A COUNTRY OF 22 MILLION PEOPLE ARE APPROACHING PRIVATIZATION AND THE REFORM OF THE ECONOMY WITH TREPIDATION TOP OFFICIALS AREN'T READY TO BREAK WITH MOSCOW BY ESTABLISHING A NATIONAL CURRENCY AND THEY ARE AWARE OF THE PAIN OF MASSIVE PRIVATIZATION HIGHER UNEMPLOYMENT THAT IN TURN CAN CREATE SOCIAL UPHEAVAL IN A REGION WITH CONFLICT SIMMERING ALL AROUND IT SO FOR THE MOMENT THE GOVERNMENT IN THE CAPITAL OF TASHKENT HAS TWO PRIORITIES GETTING MONEY FROM THE WEST AND CONTAINING THE POLITICAL DISTURBANCES JUST OUTSIDE THE REPUBLIC'S BORDERS TO THE EAST CIVIL WAR IN TAJIKISTAN IS RAGING SOUTH OF TAJIKISTAN IS AFGHANISTAN WITH ITS CACHE OF ARMS AND DRUGS WEST OF AFGHANISTAN LIES IRAN WHICH IS PRESSING ITS MUSLIM FUNDAMENTALISM MOST DISTURBING IS THE BIG QUESTION THAT LIES NORTH WHO IS REALLY RUNNING RUSSIA THROUGHOUT MR ATTALI'S WHIRLWIND VISIT OF FOUR UZBEK CITIES TOUR GUIDES AND GOVERNMENT OFFICIALS SOUGHT TO ASSURE HIM OF THE COUNTRY'S STABILITY GETTING OUT OF THE RUBLE ZONE TOO QUICKLY HAS BEEN DISASTROUS FOR UKRAINE AND THE BALTIC REPUBLICS OFFICIALS SAID RUSSIA HAS BEEN TOO QUICK TO INTRODUCE ECONOMIC REFORMS SAID UZBEK'S PRESIDENT ISLAM ABDUGANIEVICH KARIMOV FORMERLY FIRST SECRETARY OF UZBEKISTAN'S COMMUNIST PARTY UZBEKISTAN DOESN'T WANT IRAN'S FUNDAMENTALISM JUST A FRIENDLY RELATIONSHIP HE SAID THE RULER OF THE BUKHARA REGION RATTLED OFF STATISTICS ON COTTON AND SILK PRODUCTION BUT MOST IMPORTANT HE SAID OUR LOCAL PEOPLE ARE VERY HAPPY WITH OUR PRESIDENT AND HIS POLICIES THEY HAVE TO APPEAR AS ONE NATION SAYS MR ATTALI REFLECTING ON HIS VISIT DURING THE PLANE RIDE HOME THEY FACE THE SAME PROBLEM AS THE FORMER USSR HOW TO BUILD A NATION WITH MANY DIFFERENT NATIONALITIES THE MAIN OBSESSION IS UNITY VIEWED ECONOMICALLY THE COUNTRY HAS SOME MAJOR ATTRACTIONS THE GOVERNMENT SAYS GOLD PRODUCTION NOW RANKED EIGHTH IN THE WORLD COULD BE DOUBLED DURING ITS LAST 15 YEARS AS PART OF THE SOVIET UNION SAYS RUSTAM AZIMOV CHAIRMAN OF THE NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY UZBEKISTAN PRODUCED 30 BILLION OF GOLD GAS COPPER URANIUM AND COTTON THE HISTORIC CITIES OF BUKHARA SAMARKAND AND KHIVA WITH THEIR BEAUTIFULLY PRESERVED MOSQUES AND RELIGIOUS SCHOOLS COULD REEMERGE AS MAJOR TOURIST ATTRACTIONS IT'S AN AMAZINGLY PROMISING COUNTRY SAYS MR ATTALI BUT NO ONE WILL INVEST HERE WITHOUT OUR PRESENCE THE EBRD A GOVERNMENTFUNDED DEVELOPMENT BANK CHARGED WITH SERVING EASTERN EUROPE NEXT YEAR PLANS TO OPEN AN OFFICE IN TASHKENT AND PROVIDE TRAINING ON BANKING AMONG OTHER THINGS UZBEKISTAN DOES HAVE A PRIVATIZATION PLAN A DRAFT ENVISIONS PRIVATIZING SOME 10000 ENTERPRISES BY 1994 THROUGH DIRECT SALE AUCTION AND SHARE ISSUES A VOUCHER PROGRAM SIMILAR TO THE ONE INTRODUCED IN RUSSIA IS BEING STUDIED BUT EMPLOYEE BUYOUTS ARE THE PREFERRED MODE OF OWNERSHIP WITH THE GOVERNMENT KEEPING MAJORITY CONTROL OF LARGER STATE ENTERPRISES ACCORDING TO THE EBRD ABOUT 2000 STATE ENTERPRISES HAVE BEEN SOLD AND ANOTHER 2500 CONVERTED TO JOINTSTOCK COMPANIES WITH SHARES OWNED MOSTLY BY EMPLOYEES ABOUT 324 JOINT VENTURES WITH FOREIGNERS HAVE BEEN FORMED BUT ONLY ONESIXTH ARE OPERATING PARTNERS TEND TO BE FROM THE US AFGHANISTAN TURKEY AUSTRIA ITALY AND CHINA NEWMONT MINING CO A COLORADO GOLD EXPLORATION AND MINING COMPANY IS NEGOTIATING A JOINT VENTURE FOR GOLD PRODUCTION EBRD OFFICIALS SAY AND SO IS A EUROPEAN PHARMACEUTICAL COMPANY TYPICALLY THE EBRD PUTS UP SOME MONEY FOR SUCH VENTURES EITHER AS DEBT OR EQUITY THEY REALLY HAVE A FUTURE BECAUSE THEY HAVE RESOURCES SAYS HELENE CARRER D'ENCAUSSE MR ATTALI'S SPECIAL ADVISER BUT THEY ARE REALLY COMMUNISTS WHO HAVE CHANGED THEIR NAMES THEY ARE NICE GUYS BUT THEY ARE THINKING IN OLD TERMS 9301050096 930105 BUSINESS WORLD THE SOUNDS OF ERAS SHIFTING BY TIM W FERGUSON WE SEE NOT ONLY A CHANGE OF GENERATIONS AT THE WHITE HOUSE BUT OTHER POTENTIALLY MOMENTOUS AWAKENINGS AS 1993 DAWNS AT HOME THE ECONOMIC CATASTROPHE SO FREQUENTLY PREDICTED IN THE CURRENT CYCLE APPEARS TO BE A NOSHOW ALTHOUGH WORRY PERSISTS ABOUT SOME BIG FINANCIAL INSTITUTIONS THE US INDEED SEVERAL INDUSTRIALIZED NATIONS GOT GIDDY ABOUT DEBT THIS INDULGENCE AND THE HANGOVER FROM IT WERE BOTH EXAGGERATED BY OSCILLATING REGULATORY INCENTIVES BUT IN THE END CREATIVE CAPITALISTS SEEM ABLE TO OVERCOME ANY FOLLY THE RELIABILITY OF RECOVERY IS A HUMBLING REMINDER TO THOSE OF US PAID TO PAINT TRANSITORY TROUBLES IN DARK DRAMATIC HUES HOWEVER CORRECT OUR MICROANALYSES OF MISBEGOTTEN POLICIES AND PRACTICES AN INDUSTRIOUS PEOPLE MUCH LIKE A FORGIVING PLANET FINDS WAYS TO ACCOMMODATE ERROR THIS STRUCK ME OVER THE HOLIDAYS WHILE REVISITING ONE GLOOMY PROPHECY CHRISTOPHER WOOD'S 1989 BOOK BOOM & BUST THE RISE AND FALL OF THE WORLD'S FINANCIAL MARKETS I PICKED IT NOT TO BE UNKIND BUT BECAUSE THE WRITER HAS A NEW WORK OUT ON CALAMITY AWAITING JAPAN MR WOOD WRITES FOR THE ECONOMIST SO THE BENT IS SOUND BUT SO MANY OF THE CLUES HE ASSEMBLED TO THE FINANCIAL WORLD'S COMING COLLAPSE IN 1989 LEAD NOWHERE TODAY IT'S TRUE THAT THE US ENTERED A LINGERING RECESSION BUT ITS SECURITIES MARKETS CAME THROUGH WITH HARDLY A SCRATCH SOME ADMIRERS OF A FREE ECONOMY ARE PRONE CURIOUSLY TO UNDERESTIMATE ITS RECUPERATIVE POWERS RESOLUTION FOR 1993 TRY TO AVOID THAT IF MARKET SYMPATHIZERS ARE SOMETIMES TOO PRECIOUS THE SAME COULD BE SAID IN SPADES FOR THE CRITICS ON THE LEFT IN THE 1980S THEY BECAME QUITE SOLICITOUS OF THE HEALTH OF AMERICAN COMPANIES IN THE MIDST OF A CASINO ECONOMY NOW HOWEVER HONEST DOUBTERS MUST CONCEDE THAT THINGS WERE NEVER SO BAD USBASED COMPANIES ARE COMPETITIVE EVEN TRIUMPHANT IN SEVERAL SECTORS WITH A FUTURE THE AMERICANS HAVE OVERCOME RIVALS BOTH BLESSED AND CURSED WITH MORE ACTIVE GOVERNMENT INVOLVEMENT IN THEIR AFFAIRS STATE CAPITALISM SOMETIMES SCORES BUT OVER ENOUGH TIME AND INDUSTRIES IT LOSES TO LAISSEZFAIRE THE GREATER FLEXIBILITY OF US COMPANIES ALLOWS THEM EVEN TODAY TO SQUEEZE AND TRIM THEIR WORK FORCES MORE EASILY THAN RIVALS CAN EVEN WHEN LAYOFFS ARE PRUDENT THEY BRING HUMAN MISERY AMERICANS COULD MITIGATE THIS HURT BY MAINTAINING HIGHER LEVELS OF KNOWLEDGE AND TRAINING IN OTHER WORDS BY GOOFING OFF LESS WHEN TIMES ARE GOOD SO THAT THEY CAN ADAPT TO CONSUMER PREFERENCES AND AVOID UNEMPLOYMENT PRESIDENTELECT CLINTON IS ALERT TO THIS HIS SPECIAL FOCUS MAY BE ON THOSE YOUNG PEOPLE A MAJORITY STILL WHO DON'T GO TO A FOURYEAR COLLEGE HE IS SAID TO HAVE GERMANY'S APPRENTICESHIP PROGRAM IN MIND US BUSINESS EXECUTIVES HAVE LONG BEEN ENVIOUS OF IT MR CLINTON HAS A PECULIAR FASCINATION WITH THINGS GERMAN BUT IF THERE'S A WAY HERE TO BUTTRESS THE EARNINGS OF HOURLY WORKERS GREAT JOHNNY PAYCHECK'S LAGGING INCOME WE NOW KNOW CLEARLY HAS ACCOUNTED FOR MOST OF A WIDENING SPREAD BETWEEN THE AFFLUENT AND THE REST OF AMERICA OVER THE PAST 15 YEARS FAMILY SPLITUPS AND THE UNDERCLASS PHENOMENON EXPLAIN MUCH OF THE REST OF THE GAP BUT THOSE PROBLEMS AREN'T TREATABLE WITH A VOCATIONAL PROGRAM WE MIGHT REMEMBER HOWEVER JUST HOW WELL OFF AMERICANS IN TOTAL ARE TODAY FOR INSTANCE NOW THAT AN IMPLICIT CASE AGAINST RONALD REAGAN DOESN'T NEED TO BE BUILT INTO POPULAR STATISTICS MAYBE WE CAN USE REALISTIC INTERNATIONAL COMPARISONS OF WELLBEING LET'S MATCH THE PURCHASING POWER OF INCOMES HERE VS THOSE ABROAD CONSUMERS WORLDWIDE KNOW THAT BARGAINS ON NEARLY EVERYTHING ARE TO BE FOUND HERE THANKS TO OUR OPEN ECONOMY AND NOW TO DORMANT INFLATION THE BIG EXCEPTION IS IN MEDICINE WHERE THE STATE ATTEMPTS TO ENSURE ACCESS INTERNATIONALLY THE CHANGES IN MOTION ARE VIRTUALLY EPOCHAL JAPAN IS STAGGERING EVEN AS SOUTHERN CHINA RISES TO BECOME AN ECONOMIC POWER DENG XIAOPING'S LEGACY AT THE SAME TIME SOUTH FOR NOW KOREA AND TAIWAN HAVE EMERGED AS FULL INDUSTRIAL DEMOCRACIES AND EXPORT HEAVYWEIGHTS IF MUCH OF LATIN AMERICA AND THE FORMER EASTERN EUROPE CAN STAY ON A MARKET TRACK THE NEW MILLENIUM WILL BE CELEBRATED IN STYLE BY MILLIONS MORE WHO WILL PROSPER IN THE DOMESTIC ECONOMY BEFORE ITS LAST GREAT SHIFT BARELY A DECADE AGO THE NAMES OF THE THREE MEN WHO WERE TO UPEND AMERICAN BUSINESS IN THE 1980S SAM WALTON BILL GATES AND MICHAEL MILKEN WEREN'T EVEN KNOWN TO MOST OF US NOW WALTON IS DEAD BUT THE RETAIL CHAIN HE CREATED HAS ALTERED THE FACE OF SELLING MR MILKEN IS IN A HALFWAY HOUSE IN LOS ANGELES THE FIRST STEP BACK TO A LIFE IN WHICH HIS EXTRAORDINARY FINANCIAL SKILLS MIGHT FIND CONSTRUCTIVE USE PERHAPS TO RESCUE LA FROM ITS GATHERING GLOOM MR GATES AND MICROSOFT CORP HAVE BEEN THE QUIET GIANTS BUT NO LONGER THE BOY GENIUS NOW REPORTEDLY THE RICHEST MAN IN THE WORLD IS ON EVERY NEWSSTAND MORE IMPORTANT THE FEDERAL TRADE COMMISSION IS ABOUT TO STRIKE SOME BLOW AGAINST HIS COMPANY'S EXTRAORDINARY MARKETING PROWESS TECHNOLOGICAL CHANGE IS NOT BEST SERVED BY HAVING GOVERNMENT REORDER THE BATTLEGROUND FOR THE SAKE OF FAIRNESS AND JUSTICE SCHUMPETER TAUGHT THAT BUT AT LEAST HUNGRY COMPETITORS ARE READY TO TAKE UP SLACK THE COMPUTER SOFTWARE INDUSTRY DURING THE 1980S WAS PROBABLY THE STARKEST EXAMPLE OF THE ELECTRONIC REVOLUTION WHILE A BEVY OF HARDWARE MAKERS CAME UP WITH THE HOME AND OFFICE BOXES THAT UNDID AT LEAST TEMPORARILY MIGHTY IBM MICROSOFT ET AL FASHIONED THE USES OF ALL THAT MICROCHIP INTELLIGENCE SOFTWARE DEFIES EASY QUANTIFICATION BUT ONE GOOD SCALE IS THE TRADE PUBLICATION SOFTLETTER'S TOP 100 SELLERS OF PRODUCTS FOR SMALLCOMPUTER USERS THE COMPARISON IN THE CHART SHOWS HOW QUICKLY THE FIELD AND MICROSOFT'S PLACE IN IT GREW EVEN BEFORE THE BANNER 1992 THE US IS KING OF WORLD SOFTWARE IT ALSO LEADS IN TELECOMMUNICATIONS ANOTHER GREAT WAVE OF INNOVATION SOON OF COURSE COMPUTING AND VIDEO WILL BE SEEN ROUTINELY AS ONE THE NEXT MICROSOFT IS PROBABLY LOOMING THERE OR IN BIOTECHNOLOGY AS BRIGHT AS THE HORIZONS ARE THIS COUNTRY REMAINS AFFLICTED WITH CULTURAL ILLS THAT HAVE LED SOME TO COMPARE OUR TIMES WITH THOSE OF GERMANY'S WEIMAR REPUBLIC LAST YEAR SAW THE DEATH OF ONE SUCH SAVANT THE UNIVERSITY OF CHICAGO'S ALLAN BLOOM FIVE YEARS BEFORE HIS CLOSING OF THE AMERICAN MIND STUNNED PUBLISHING WITH ITS RUNAWAY SALES ONE HOPEFUL INDICATOR OF HUNGER FOR VALUES EVEN AS SOCIETY FEEDS ITSELF SICK ON THE TRIFLE OF THE DAY THE CONTEST FOR THE SOUL SEEMINGLY OUTSIDE THE REALM OF THE MARKETPLACE MAY BE THE NASCENT ERA'S MOST DEFINING ECONOMIC STORY OF ALL 9301050094 930105 TRAVEL FREQUENT FLIERS FIND BENEFITS ENHANCED AGAIN BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CRUSHED BY FARE WARS BUT BEGGING FOR CUSTOMERS AIRLINES ARE ONCE AGAIN TURNING THEIR FREQUENTFLIER PROGRAMS INTO A FAVORITE MARKETING WEAPON ENHANCEMENTS IN FREQUENTFLIER BENEFITS WERE ANNOUNCED BY AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES WINGS HOLDINGS INC'S NORTHWEST AIRLINES AMERICA WEST AIRLINES TRANS WORLD AIRLINES AND USAIR A UNIT OF USAIR GROUP INC LAST FALL DELTA AIR LINES EASED MILEAGE REQUIREMENTS FOR FREE COACH TICKETS AND HAS BEEN HEAVILY PROMOTING ITS PROGRAM WITH FULLPAGE NEWSPAPER ADS DESPITE THE ENHANCEMENTS CONSUMERS ARE NOT LIKELY TO SEE A RETURN TO THE GIDDY TRIPLE MILEAGE DAYS OF 1988 WHEN MANY PASSENGERS RECEIVED THREE MILEAGE CREDITS FOR EACH MILE FLOWN AND AIRLINES SAW THEIR FREQUENTFLIER LIABILITIES SKYROCKET OVER THE YEARS MOST CARRIERS HAVE ALSO TENDED TO INCREASE MILEAGE REQUIREMENTS FOR FREE TICKETS BUT THE AIRLINES FACED WITH EXCESS CAPACITY ARE TRYING TO BEEF UP THEIR FREQUENTFLIER PROGRAMS WITH QUICKHIT PROMOTIONS THE GOAL IS TO SPARK DEMAND WITHOUT IGNITING ANOTHER RUINOUS FARE WAR MOST FREE TICKETS HOWEVER ARE ONLY AVAILABLE IF THE TRIP INCLUDES A SATURDAY NIGHT STAY THEREBY PREVENTING USE OF THOSE TICKETS BY MANY BUSINESS TRAVELERS AIRLINES USE THESE PROGRAMS TO MANIPULATE TRAVEL PLANS AND FILL GAPS IN THE SYSTEM SAYS THOMAS NULTY PRESIDENT OF ASSOCIATED TRAVEL MANAGEMENT IN SANTA ANA CALIF AMERICAN UNITED NORTHWEST AND USAIR ANNOUNCED WINTER FREQUENTFLIER PROMOTIONS THAT REPEAT SIMILAR PROMOTIONS THAT RAN DURING THE FALL AMERICAN FIRED THE FIRST SALVO UNDER THE PLAN FREQUENTFLIER MEMBERS RECEIVE A FREE AWARD CERTIFICATE IF THEY FLY EIGHT FLIGHTS OR 12000 MILES BETWEEN JAN 4 AND APRIL 2 CERTIFICATES CAN BE REDEEMED FOR TRAVEL BETWEEN SEPT 1 AND DEC 22 IN THE CONTINENTAL US CANADA MEXICO OR THE CARIBBEAN UNDER THE NORMAL RULES OF THE PROGRAM CUSTOMERS NEED TO FLY 20000 MILES TO WIN AN AWARD CERTIFICATE AND THE AWARDS ARE ONLY BASED ON MILES NOT NUMBER OF FLIGHTS UNDER THE FREQUENTFLIER PROMOTION PASSENGERS MAY ALSO RECEIVE TWO AWARD CERTIFICATES IF THEY FLY 24000 MILES OR ON 16 SEGMENTS AND THOSE TICKETS ARE GOOD FOR TRAVEL TO EUROPE LATIN AMERICA JAPAN OR HAWAII AMERICAN'S ANNOUNCEMENT MAY HAVE BEEN TIMED TO INCREASE REVENUEPAYING PASSENGERS AT A TIME WHEN SOME OF ITS CUSTOMERS WILL BE FLYING FREE FOR PASSENGERS WHO PARTICIPATED IN AMERICAN'S FALL FREQUENTFLIER PROMOTION TRAVEL MUST TAKE PLACE BETWEEN FEB 1 AND MAY 31 OF THIS YEAR PART OF THE INTENT OF AMERICAN'S PROGRAM IS TO GET TO PEOPLE TO TAKE ADVANTAGE OF IT INSTEAD OF CASHING IN THEIR FALL AWARD SAYS RANDY PETERSEN EDITOR OF INSIDE FLYER A TRADE PUBLICATION IN A STATEMENT AMERICAN SAID ITS FREQUENTFLIER PROMOTION IN THE FALL WAS A HIT WITH OUR LOYAL FREQUENT FLIER MEMBERS AND THE CURRENT INITIATIVE IS AN EFFECTIVE WAY TO REWARD MEMBERS UNITED AIRLINES MATCHED AMERICAN'S PROMOTION AND ADDED THREE ADDITIONAL TIERS FOR MORE FREQUENT TRAVELERS FREQUENTFLIER MEMBERS WHO TRAVEL ON 48 FLIGHTS OR 72000 MILES IN THE SPECIFIED TIME PERIOD FOR EXAMPLE RECEIVE A BUSINESSCLASS TICKET TO ASIA OR THE SOUTH PACIFIC USAIR ESSENTIALLY FOLLOWED AMERICAN'S FREQUENTFLIER PROMOTION IN TERMS OF MILEAGE AND FLIGHT REQUIREMENTS AS WELL AS DATES IN ADDITION TO RECEIVING AN AWARD CERTIFICATE FOR A FREE TICKET USAIR FLIERS WHO MEET THE REQUIREMENTS CAN ALSO BUY A COMPANION TICKET ON A NORTH AMERICA FLIGHT FOR 200 OR THEY CAN RECEIVE 11 FIRSTCLASS UPGRADES NORTHWEST ALSO ESSENTIALLY FOLLOWED AMERICAN'S PROMOTION ALTHOUGH NORTHWEST OFFERS A LONGER PERIOD TO REDEEM AWARDS DELTA AIR LINES SAID IT WOULD BE COMPETITIVE WITH THE FREQUENTFLIER PROMOTION LAUNCHED BY AMERICAN CONTINENTAL AIRLINES A CONTINENTAL AIRLINES HOLDINGS INC UNIT SAID IT WAS STUDYING THE ISSUE TWA SAID ITS FREQUENTFLIER MEMBERS WILL RECEIVE 10000 BONUS MILES FOR EVERY FOUR FLIGHTS TAKEN BETWEEN YESTERDAY AND MARCH 31 WHEN A CUSTOMER TAKES 20 FLIGHTS AND RECEIVES 50000 BONUS MILES TWA SAID IT WILL THROW IN AN ADDITIONAL 50000 FREE MILEAGE CREDITS FOR A TOTAL OF 100000 THE AIRLINE SAID THE MILES CAN BE REDEEMED AT THE FLIER'S DISCRETION AND THEY HAVE NO EXPIRATION DATE AMERICA WEST AIRLINES ANNOUNCED A NEW LEVEL OF RECOGNITION AND PRIVILEGES FOR ITS MOST FREQUENT TRAVELERS IF CUSTOMERS RACK UP 50000 MILES IN LESS THAN A YEAR AMERICA WEST WILL REWARD THEM WITH ONE BONUS MILE FOR EACH ADDITIONAL MILE FLOWN DURING THE REMAINDER OF THE YEAR FOR THE SAME PASSENGERS THE CARRIER IS ALSO OFFERING SEAT UPGRADES FOR HALF THE MILEAGE CREDITS IT REQUIRES FOR ITS OTHER FREQUENTFLIER MEMBERS TRAVEL EXPERTS SAY FREQUENTFLIER PROMOTIONS USUALLY MOST BENEFIT THE LARGEST CARRIERS BECAUSE PASSENGERS WANT TO ACCUMULATE POINTS ON THE AIRLINES THAT HAVE THE MOST ROUTES BUT YESTERDAY'S FRENZY OF PROMOTIONS IS HARDLY GOOD NEWS TO THE INDUSTRY'S GIANTS WHILE THE PROMOTIONS MAY NOT BE AS COSTLY AS A FARE WAR THEY STILL COME AT A PRICE IN A WAY THIS IS JUST LIKE AIRLINES STEALING FROM THEMSELVES BY INCREASING SALES NOW AND PAYING LATER SAYS JOE BRANCATELLI EXECUTIVE EDITOR OF FREQUENT FLYER MAGAZINE THIS HAS TO DO WITH THE DESPERATION OF FILLING EXTRA SEATS 9301050093 930105 PANNELL KERR FORSTER FILES FOR CHAPTER 11 PROTECTION NEW YORK THE FORMER ACCOUNTING FIRM OF PANNELL KERR FORSTER WHICH HAS SPUN OFF MOST OF ITS US OFFICES AS SEPARATE BUSINESS UNITS FILED FOR BANKRUPTCYLAW PROTECTION IN LOS ANGELES ONCE THE NINTHLARGEST US ACCOUNTING FIRM PANNELL KERR IN THE PAST FEW YEARS DRASTICALLY REDUCED ITS SIZE BECAUSE OF DECLINING BUSINESS BUT SOME CREDITORS INCLUDING REAL ESTATE LESSORS HAVE THREATENED TO SUE FORMER PARTNERS FOR RENTALS SAID HAROLD GUTENBERG FORMER GENERAL COUNSEL OF PANNELL KERR SO WE WERE FORCED TO FILE FOR BANKRUPTCYLAW PROTECTION ON AN EMERGENCY BASIS TO PROTECT THE PERSONAL ASSETS OF FORMER PANNELL KERR PARTNERS MR GUTENBERG SAID ONE LANDLORD IN CALIFORNIA HAD ASKED AS MUCH AS 5 MILLION FOR RENTALS OWNED BY THE ACCOUNTING FIRM MR GUTENBERG SAID THE FORMER ACCOUNTING FIRM ALSO FACES 18 MALPRACTICE CLAIMS SEEKING 15000 TO 40 MILLION A HEARING WITH SOME OF THE CREDITORS IS SCHEDULED THURSDAY IN THE BANKRUPTCY SECTION OF US DISTRICT COURT THE FILING DOESN'T INVOLVE SIX ACCOUNTING FIRMS OPERATING AS SEPARATE PROFESSIONAL CORPORATIONS OR EIGHT CONSULTING FIRMS OPERATING AS SEPARATE ENTITIES UNDER THE PANNELL KERR NAME IN THE US ACCORDING TO GARY KARR MARKETING DIRECTOR OF PANNELL KERR'S SPUNOFF CONSULTING BUSINESS 9301050092 930105 INTERNATIONAL TEXACO WITHDRAWS FROM TALKS TO BUY HIBERNIA STAKE BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA TEXACO INC WITHDREW FROM NEGOTIATIONS TO ACQUIRE A 25 INTEREST IN THE 41 BILLION HIBERNIA OILFIELD PROJECT IN THE ATLANTIC OCEAN OFF NEWFOUNDLAND FORMER CANADIAN ENERGY MINISTER JAKE EPP SAID THE ANNOUNCEMENT RAISED NEW CONCERNS ABOUT THE FEASIBILITY OF THE PROJECT WHICH IS SCHEDULED TO START PRODUCTION IN MID1997 TEXACO WAS VIEWED BY THE GOVERNMENT AS THE PREFERRED REPLACEMENT FOR GULF CANADA RESOURCES LTD WHICH DECIDED TO PULL OUT OF THE PROJECT LAST YEAR BECAUSE OF ITS HEAVY COSTS IN THE US A TEXACO SPOKESWOMAN CONFIRMED THAT WE ARE NOT PARTICIPATING AT THIS TIME SHE WOULDN'T ELABORATE MR EPP SAID NEGOTIATIONS WERE HELD IN TORONTO WITH A NUMBER OF OTHER POTENTIAL INVESTORS IN THE PROJECT BUT HE DIDN'T IDENTIFY THEM HE SAID HE REMAINED HOPEFUL THAT THE HIBERNIA PROJECT WOULD PROCEED BUT THAT HIS SUCCESSOR AS ENERGY MINISTER WILLIAM MCKNIGHT AND HIS FORMER CABINET COLLEAGUES WILL HAVE TO MAKE THE DECISION ABOUT THE EXTENT OF THE GOVERNMENT'S INVOLVEMENT IN THE PROJECT MR MCKNIGHT WAS NAMED ENERGY MINISTER YESTERDAY BY PRIME MINISTER BRIAN MULRONEY AS PART OF A RESTRUCTURING OF MR MULRONEY'S CABINET MR MCKNIGHT TOLD REPORTERS THAT HIBERNIA IS IMPORTANT TO CANADA BUT THERE IS A COST AND COSTS ARE IMPORTANT TO CANADA TOO THE GLOBE AND MAIL NEWSPAPER AMONG OTHERS RECENTLY URGED THE GOVERNMENT TO SHUT DOWN HIBERNIA WHICH IT SAID MAKES NO ECONOMIC SENSE THE FEDERAL GOVERNMENT'S FINANCIAL COMMITMENT TO THE PROJECT CURRENTLY TOTALS 21 BILLION SOME OIL ANALYSTS HAVE PREDICTED THAT THE FEDERAL AND NEWFOUNDLAND GOVERNMENTS WILL TAKE OVER IF NECESSARY AT LEAST PART OF GULF'S 25 INTEREST THE PROJECT'S OTHER PARTNERS INCLUDE PETROCANADA AND THE CANADIAN UNITS OF CHEVRON CORP AND MOBIL CORP A PETROCANADA SPOKESMAN SAID THE HIBERNIA PARTNERS WERE HOPEFUL THAT A NEW PARTICIPANT WILL BE FOUND AND THAT THE PROJECT WILL PROCEED HE REAFFIRMED THAT PETROCANADA WOULD LIKE TO SELL PART OF ITS 25 INTEREST IN THE FIELD BUT HE SAID THE COMPANY WON'T BE ACTIVELY SOLICITING OFFERS UNTIL GULF'S INTEREST IS ACQUIRED WORK ON THE PROJECT HAS CONTINUED DESPITE THE UNCERTAINTIES ABOUT ITS BACKING SCAFFOLDING HAS BEEN ERECTED FOR THE CONCRETE RIG WHICH IS TO BE TOWED TO THE FIELD IN 1996 THE BUILDERS ARE TO START POURING CONCRETE FOR THE BIG RIG IN MARCH THE FIELD DISCOVERED IN 1979 IS ESTIMATED TO CONTAINED 525 MILLION BARRELS OF RECOVERABLE CRUDE OIL ITS DEVELOPMENT HAS BEEN REPEATEDLY DELAYED BECAUSE OIL PRICES HAVE BEEN SO LOW 9301050091 930105 FOREIGN EXCHANGE DOLLAR GAINS AS TRADERS EXPECT IT TO RISE THIS YEAR AND PRESSURE ON ERM RETURNS BY GREGORY L WHITE SPECIAL TO THE WALL STREET JOURNAL NEW YORK BUYERS FLOCKED TO THE DOLLAR SHEDDING THEIR HOLDINGS OF EUROPEAN CURRENCIES IN ANTICIPATION OF A DOLLAR RALLY IN 1993 DEALERS SAID THE DOLLAR ALSO BENEFITED AS TURMOIL REEMERGED IN THE EUROPEAN EXCHANGE RATE MECHANISM SELLERS TURNED ON EUROPE'S WEAKER CURRENCIES PROMPTING CENTRAL BANKS TO STEP IN TO PROTECT THE FRENCH FRANC AND THE IRISH PUNT DEALERS SAID IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16395 MARKS AND 12535 YEN UP FROM 16209 MARKS AND 12484 YEN LATE THURSDAY STERLING WAS TRADING AT 15000 OFF FROM 15100 IN TOKYO EARLY TUESDAY THE DOLLAR WAS TRADING AT 16350 MARKS AND 12518 YEN THE NIKKEI STOCK INDEX WAS AT 1684017 DOWN 15391 POINTS DEALERS SAID THAT AS PARTICIPANTS RETURNED TO THE MARKET AFTER THE HOLIDAY ATTENTION REFOCUSED ON THE ECONOMIC LOGIC UNDERPINNING THE DOLLAR THIS IS JUST A REFLECTION OF THE FACT THAT MOST PEOPLE EXPECT THE DOLLAR TO GO HIGHER THIS YEAR SAID GEOFFREY DENNIS INTERNATIONAL ECONOMIST AT JAMES CAPEL & CO IN NEW YORK THOUGH SOME PLAYERS WARNED THAT YESTERDAY'S RALLY MIGHT HAVE TAKEN THE DOLLAR TOO FAR TOO FAST THEY AGREED THAT THE STEADY CLIMB TOWARD ECONOMIC RECOVERY IN THE US IN CONTRAST TO GERMANY'S SWAN DIVE INTO RECESSION MAKES A COMPELLING CASE FOR DOLLAR BULLS CLEARLY THE US ECONOMY APPEARS TO BE PICKING UP SAID TOM HOGE A CORPORATE TRADER AT CREDIT SUISSE IN NEW YORK AFTER A LULL OVER THE HOLIDAY SELLERS TARGETED THE FRENCH FRANC DRAWING THE BUNDESBANK AND THE BANK OF FRANCE TO SELL MARKS AT AROUND 34150 FRANCS AND THE IRISH PUNT SUFFERED AFTER THE CENTRAL BANK OF IRELAND LIFTED THE CAPITAL CONTROLS PROTECTING IT THE BELGIAN NATIONAL BANK CONFIRMED ITS INTERVENTION TO SUPPORT THE PUNT TRADERS SAID THE BANK BOUGHT PUNTS AT THE ERM FLOOR OF 540510 FRANCS PARTICIPANTS SAID THE DOLLAR BENEFITED AS INVESTORS SOUGHT A HAVEN FROM THE TURMOIL IN ADDITION DEALERS SAID SHARPENING TENSION IN THE ERM RAISES THE PRESSURE ON THE BUNDESBANK TO CUT INTEREST RATES EVERYONE'S GOING TO BE WATCHING THE FRENCH FRANC SAID LYNN TIERNEY VICE PRESIDENT AT SHAWMUT BANK OF BOSTON INTENSIFYING PRESSURE ON THE FRANC COULD CRACK THE SYSTEM DEALERS SAID EVEN AS THE DOLLAR GAINS AGAINST THE MARK SUNDAY'S NEWS THAT GERMAN ECONOMICS MINISTER JUERGEN MOELLEMANN RESIGNED ENCOURAGED MARK SELLERS DEALERS SAID BUT MR MOELLEMANN'S DEPARTURE UNDER A CLOUD OF ACCUSATIONS HE MISUSED HIS OFFICE AND ISN'T UP TO SOLVING GERMANY'S ECONOMIC PROBLEMS DOESN'T APPEAR TO SIGNAL A SHIFT IN GERMAN POLICY PARTICIPANTS SAID MS TIERNEY SAID SOME OF THE DOLLAR'S STRENGTH ALSO CAME FROM PENTUP DEMAND IN THE ILLIQUID MARKET OVER THE HOLIDAYS SHE SAID MANY PLAYERS WERE RELUCTANT TO COMMIT HEAVILY TO THE DOLLAR DESPITE A STRING OF ENCOURAGING US ECONOMIC REPORTS CREDIT SUISSE'S MR HOGE SAID EVEN SKEPTICAL PLAYERS ARE RELUCTANT TO WATCH FROM THE SIDELINES AS THE DOLLAR RISES NO ONE WANTS TO MISS IT HE SAID THE CANADIAN DOLLAR WAS HURT BY A LARGE SELL ORDER IN A THIN MARKET SAID DAVE GLOWACKI SENIOR DEALER AT NATIONAL BANK OF DETROIT MS TIERNEY SAID PLAYERS ALSO WERE UNSETTLED BY NEWS OF A CABINET RESHUFFLE ALTHOUGH SUCH CHANGES ARE ALMOST AN ANNUAL RITUAL IN CANADA SHE SAID THE NEWS GOT PEOPLE A LITTLE BIT SPOOKED THE US DOLLAR ISN'T LIKELY TO EXTEND ITS GAINS JUST YET PARTICIPANTS SAID DOLLAR BULLS HAVE BEEN GETTING AHEAD OF THEMSELVES SAID MS TIERNEY WHEN YOU THINK ABOUT IT NOTHING HAS CHANGED THE GAP BETWEEN US AND GERMAN INTEREST RATES STILL HOVERS AROUND SIX PERCENTAGE POINTS PLAYERS NOTED SAPPING THE RETURNS OF ANYONE HOLDING DOLLARS MR HOGE OF CREDIT SUISSE WARNED THAT WHAT HE CALLED NEW YEAR DOLLAR EUPHORIA COULD GIVE WAY TO A SHARP CORRECTION A LOT OF PEOPLE REALLY WANT TO OWN DOLLARS BUT ARE NERVOUS ABOUT STEPPING IN AT THESE LEVELS HE SAID THE FOREIGN EXCHANGE MARKET HAS ONCE AGAIN PUT THE DOLLAR UP AT LEVELS THAT ALREADY FACTOR IN A COUPLE OF CUTS BY THE GERMANS BUT OVER THE NEXT SEVERAL WEEKS DEALERS SAID ANY SIGN GERMAN RATES HAVE STARTED TO FALL WOULD CATAPULT THE DOLLAR SHARPLY HIGHER THIS IS THE BEGINNING OF A MAJOR MOVE IN THE DOLLAR SAID MR DENNIS OF JAMES CAPEL EVEN IF BUYERS STEP BACK PARTICIPANTS SAID THE DOLLAR STILL WILL BENEFIT FROM THE TENSIONS IN THE ERM THE MORE PRESSURE THAT'S ON THE FRENCH FRANC SAID MS TIERNEY THE HIGHER THE DOLLAR WILL GO 9301050090 930105 MAYBE THESE BANDS WILL START A MAGAZINE CALLED ROLLING CLONE EXPLOITERS OF ROCK'S FAKE FAD LOOK SOUND LIKE BIG STARS BUT CHARGE HUMBLER PRICES BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON DON'T I LOOK LIKE A '70S GROUPIE SAYS 29YEAROLD JILL MONTGOMERY HER LONG BLONDE WIG RINGED BY A BANDANA SHE IS DYING TO MEET BJORN HE'S SO REAL SHE SAYS WELL NOT REALLY BJORN IS BJORN VOLVOEUS THE STAGE NAME OF AN AUSTRALIAN SINGER WHO SPEAKS IN A FAKE SWEDISH ACCENT AND KEEPS HIS TRUE IDENTITY SECRET HIS MELBOURNE ROCK BAND BJORN AGAIN HAS JUST SWEPT FROM THE STAGE AFTER ITS 800TH OR SO SELLOUT CONCERT IMPERSONATING THE LONGDISBANDED '70S SWEDISH SUPERGROUP ABBA THE MIMICRY CONTINUES IN A BACKSTAGE INTERVIEW JA VEE ACKNOWLEDGE CHUCK BERRY AND OOMPAH BANDS AMONG OUR MUSICAL INFLUENCES DEADPANS MR VOLVOEUS IN A SWEATY SPANGLED ABBAESQUE JUMPSUIT HE COULD PASS FOR ABBA'S REAL BJORN BJORN ULVAEUS BJORN AGAIN IS A TRIBUTE BAND ONE OF HUNDREDS FROM LONDON TO LOS ANGELES BREATHING LIFE INTO DEAD DEFUNCT OR SEMIRETIRED POP GROUPS IN EUROPE THE BOOTLEG BEATLES COUNTERFEIT STONES AND SCOTTISH SEX PISTOLS ARE PLAYING TO SELLOUT CROWDS IN THE US SUBURBAN CHICAGO ALONE SUPPORTS ABOUT TWO DOZEN TRIBUTE GROUPS INCLUDING KNOCKOFFS OF THE GRATEFUL DEAD PINK FLOYD AND CHEAP TRICK OF COURSE ELVIS PRESLEY AND THE BEATLES HAVE DRAWN IMITATORS SINCE THE 1970S BUT THE NEW WAVE OF ACTS HAS TURNED TRIBUTE INTO VERY BIG BUSINESS SAYS ROBERT REED A CAMBRIDGE ENGLAND ROCK PROMOTER WHO MAKES HIS LIVING EXCLUSIVELY BOOKING TRIBUTE ACTS MUSIC CRITICS CREDIT OR BLAME THE PHENOMENON PARTLY ON THE CHAOTIC STATE OF POP MUSIC WHICH HAS FRAGMENTED INTO VARIOUS NICHES RAP TECHNO RAVE AND VARIOUS GRADATIONS OF ROCK AND METAL WITH LITTLE APPEAL TO MAINSTREAM AUDIENCES ADD THE PUBLIC'S SEEMINGLY INSATIABLE APPETITE FOR NOSTALGIA AND TRIBUTE GROUPS MAKE SENSE SAYS CAROLINE SULLIVAN WHO WRITES ABOUT THE LONDON MUSIC SCENE MOST PLAY MUSIC THAT IS MELODIC AND FAMILIAR SHE SAYS IT'S QUITE COMFORTING REALLY TO HEAR THESE BANDS WHEN YOU CAN'T MAKE SENSE OF MUCH OF THE NEW MUSIC ON THE RADIO TRIBUTE HAS ALSO GOTTEN A BOOST FROM THE GLOBAL RECESSION IN LONDON WHERE TICKETS TO BIGNAME ROCK SHOWS IN GIANT ARENAS COST 40 TRIBUTE BANDS CAN BE SEEN IN MORE INTIMATE SETTINGS FOR A THIRD THE PRICE CONSIDERING THAT MANY GO TO EXTRAORDINARY LENGTHS TO COPY EVERY MUSICAL AND FASHION NUANCE OF THE BANDS THEY ARE RECREATING TRIBUTE IS SEEN AS VALUE FOR MONEY SAYS MR REED THE ROCK PROMOTER BJORN AGAIN FOR EXAMPLE AUDITIONED ABOUT 100 WOMEN FOR THE ROLES OF THE BAND'S TWO FEMALE SINGERS THE GROUP NOT ONLY REHEARSES A LOT BUT SPENDS HOUR UPON HOUR STUDYING OLD ABBA VIDEOS FOR DANCE MOVES SPEECH PATTERNS ABBA RECORDED IN ENGLISH AND COSTUME DESIGNS THE RESULT COMBINES CAMPY THEATRICS WITH THE SYRUPY BRAND OF EUROPOP ABBA MASTERED ON HITS SUCH AS DANCING QUEEN MS MONTGOMERY THE BJORN GROUPIE DECLARES I NEVER SAW ABBA IN CONCERT BUT I THINK BJORN AGAIN IS PROBABLY BETTER THAN ABBA EVER WAS TRIBUTE BANDS THEMSELVES SEEM TO FORM FOR TWO REASONS MONEY OR BECAUSE THEY ACTUALLY ADMIRE THE GROUP THEY ARE MIMICKING FOR BJORN AGAIN COMMERCIAL IMPULSES WERE PARAMOUNT ABBA WAS BIG IN AUSTRALIA BUT IT WAS ALWAYS CONSIDERED A DAGGY' UNHIP BAND SAYS JOHN TYRRELL BJORN AGAIN'S DRUMMER AND THE ONLY BAND MEMBER ALLOWED TO STRAY OUT OF CHARACTER FOR INTERVIEW PURPOSES BUT ABOUT TWO YEARS AGO WITH AUSTRALIA IN THE GRIPS OF A 1960S MUSIC REVIVAL MR TYRRELL AND SOME OTHER PARTTIME MUSICIANS GATHERED TO FIGURE OUT HOW THEY COULD CASH IN WE FIGURED IF '60S MUSIC WAS HOT NOW '70S MUSIC WOULD BE NEXT HE RECALLS THEY CHOSE ABBA NOT ONLY BECAUSE IT WAS ONE OF THE BESTSELLING BANDS OF THE 1970S WITH 240 MILLION ALBUM SALES BUT ALSO BECAUSE TWO OF BJORN'S FOUNDING MEMBERS BORE UNCANNY RESEMBLANCES TO ABBA'S MALE SINGERS THEIR RECENT STAND AT THE TOWN & COUNTRY CLUB HERE SOLD OUT FIVE NIGHTS AND GROSSED ALMOST 200000 IF NOT EXACTLY ROCKSTAR WAGES WE DO EARN A DECENT LIVING SAYS MR TYRRELL IN A BASEMENT IN SOUTHWEST LONDON NICK DAGGER SIPPING TEA IS ADAMANT THAT THE COUNTERFEIT STONES AREN'T IN IT FOR THE MONEY I'VE ALWAYS LIKED THE STONES AND I DON'T THINK ANYBODY IN THIS BAND WOULD BE DOING IT IF IT WASN'T A LOT OF FUN TO PLAY THE MUSIC SAYS MR DAGGER WHO IN REAL LIFE IS STEVE ELSON A 34YEAROLD LONDON SONGWRITER THE YEAROLD STONE CLONES WHO HAVE PLAYED THE US EUROPE AND THE MIDDLE EAST TRY TO RECREATE THE RAUCOUSNESS OF ROLLING STONES CONCERTS CIRCA 1969 BY PERFORMING IN LOUD BELLBOTTOMS AND GUZZLING CHEAP CHAMPAGNE IN BETWEEN SETS ARE THEY PURSUED BY GROUPIES LOTS OF THEM SAYS MR ELSON BUT UNFORTUNATELY THIS ISN'T 1969 GROUPIES ARE A PERK YOU HAVE TO BE CAREFUL ABOUT THESE DAYS ROCK IDOLS THEMSELVES SEEM TO FIND TRIBUTE BANDS FLATTERING NOT TO MENTION FINANCIALLY REWARDING TRIBUTE BANDS CAN GENERATE NEW INTEREST IN OLD ALBUMS AS WELL AS CHURN UP ROYALTY INCOME FROM CLUBS AND OTHER VENUES EMPLOYING BANDS THAT PERFORM COPYRIGHTED MUSIC STILL THE LAWYERS OF ROCK IDOLS SOMETIMES GET ANNOYED COPYRIGHT INFRINGEMENT ISN'T AN ISSUE SO LONG AS THE FAKES MAKE IT CLEAR THEY ARE JUST THAT THUS THE COUNTERFEIT STONES GOT A POLITEBUTSTERN LETTER FROM THE ROLLING STONES' LAWYERS ADMONISHING THEM THAT THEY COULDN'T ACTUALLY CLAIM TO BE RECREATING THE ROLLING STONES ON STAGE IN PROMOTIONAL LITERATURE THE WORDING WAS CHANGED TO RECREATING THE STONES' MUSIC ABBA'S SPOKESWOMAN DIDN'T RETURN PHONE CALLS SEEKING COMMENT ON BJORN AGAIN BUT ABBA'S MR ULVAEUS FOLLOWING A RECENT BJORN AGAIN APPEARANCE IN SWEDEN PAID TRIBUTE TO HIS TRIBUTE DOUBLE IN A TELEGRAM THAT SAID BEST OF LUCK SOMEONE WHO LOOKS LIKE ME OUGHT TO HAVE A SUCCESSFUL CAREER MUSIC CRITICS SURMISE THAT A RECENT RELEASE OF AN ABBA GREATESTHITS ALBUM ALONG WITH PERSISTENT RUMORS THAT THE GROUP MAY ACTUALLY GET BACK TOGETHER WERE SPURRED IN PART BY BJORN AGAIN'S SUCCESS FOR SCOTT GORHAM FORMER GUITAR PLAYER FOR THIN LIZZY AN '80S ROCK BAND BEST REMEMBERED FOR THE HIT SINGLE THE BOYS ARE BACK IN TOWN THE TRIBUTE CRAZE HAS RESULTED IN SOME STRANGE SURPRISES MR GORHAM WAS TRAVELING IN NORWAY NOT LONG AGO WHEN HE WAS APPROACHED BY THIN LIZZY CLONES PLAYING A NORWEGIAN NIGHT CLUB HE HAS SINCE LEARNED THAT BOTH THE US AND SWEDEN SUPPORT THIN LIZZY LOOKALIKES MR GORHAM WHO HAS BEEN TOURING EUROPE AND THE US WITH A NEW BAND 21 GUNS CALLS THE THIN LIZZY CLONES FLATTERING BUT TRIBUTE MANIA ALSO STRIKES HIM AS BIZARRE IT'S PRETTY WILD TO THINK THAT PEOPLE ARE ACTUALLY GOING AROUND RECREATING WHAT THEY THINK WAS YOUR CAREER HE SAYS 9301050089 930105 BUSINESS BRIEF TYCO LABORATORIES INC SIMPLEX UNIT FINISHES TALKS WITH AN AT&T SUBSIDIARY TYCO LABORATORIES INC SAID ITS SIMPLEX WIRE & CABLE CO UNIT COMPLETED NEGOTIATIONS WITH AT&T SUBMARINE SYSTEMS INC TO SUPPLY UNDERSEA FIBEROPTIC CABLE IN A CONTRACT VALUED AT AS MUCH AS 500 MILLION TYCO LABS AN EXETER NH MAKER OF FIRE PROTECTION EQUIPMENT FLOW CONTROL DEVICES AND ELECTRICAL PARTS SAID THAT DELIVERY OF AN INITIAL PORTION OF THE CONTRACT IS SCHEDULED OVER THREE YEARS IF THE AMERICAN TELEPHONE & TELEGRAPH CO UNIT EXERCISES AN ADDITIONAL TWOYEAR OPTION THE CONTRACT'S VALUE WILL RISE TO ABOUT 500 MILLION OVER FIVE YEARS TYCO LABS SAID THE CONTRACT UPON FINAL APPROVAL WILL BE THE LARGEST AWARD IN THE HISTORY OF ITS SIMPLEX UNIT 9301050088 930105 HARTMARX COMPLETES REFINANCING AND SALE OF 30 MILLION IN STOCK CHICAGO HARTMARX CORP SAID IT COMPLETED ITS FINANCIAL RESTRUCTURING BY REPLACING MOST OF ITS 350 MILLION CREDIT FACILITY AND SELLING 30 MILLION OF NEW COMMON STOCK THE CREDIT AGREEMENTS INVOLVE 18 SEPARATE LENDERS AND INCREASE THE COMPANY'S BORROWING COSTS TO A VARIABLE RATE SET AT TWO PERCENTAGE POINTS ABOVE THE PRIME RATE UNDER ITS OLD AGREEMENTS HARTMARX PAID PRIME RATE PLUS ONE PERCENTAGE POINT THE NEW AGREEMENTS REFINANCE 307 MILLION OF SENIOR DEBT HARTMARX SEPARATELY OBTAINED AN ADDITIONAL 35 MILLION SEASONAL REVOLVING LOAN FACILITY THE COMPANY LEFT IN PLACE A LOAN AGREEMENT FOR 8 MILLION THE AGREEMENT FOR THE SENIOR DEBT RUNS FOR THREE YEARS ENDING DEC 30 1994 THE REVOLVING CREDIT AGREEMENT EXPIRES NOV 30 1993 HARTMARX ALSO SAID IT EXECUTED THE PREVIOUSLY ANNOUNCED SALE OF 57 MILLION SHARES FOR 30 MILLION TO SAUDI INVESTOR ABDULLAH BAKHSH FOR 525 A SHARE THE TRANSACTION INCLUDED THE SALE TO MR BAKHSH OF THREEYEAR WARRANTS TO PURCHASE AN ADDITIONAL 165 MILLION SHARES FOR 650 A SHARE MR BAKHSH IS NOW THE COMPANY'S LARGEST SINGLE SHAREHOLDER IN CONNECTION WITH THE PURCHASE OF THE SHARES AND IN ACCORDANCE WITH THE PREVIOUSLY ANNOUNCED AGREEMENT TALAT M OTHMAN AND CHARLES K OLSON WERE NAMED TO HARTMARX'S BOARD INCREASING THE BOARD'S SIZE TO 11 MEMBERS MESSRS OTHMAN 56 YEARS OLD AND OLSON 50 ARE EXECUTIVES OF A SUBURBAN CHICAGO FINANCIAL ADVISORY FIRM OWNED BY MR BAKHSH HARTMARX IS IN THE PROCESS OF SHEDDING ITS RETAIL APPAREL STORES AND REFOCUSING ITS BUSINESS ON APPAREL MANUFACTURING 9301050087 930105 MARKETING & MEDIA NOTED WHO'S NEWS KEVIN KELLEHER 34 WAS NAMED SENIOR VICE PRESIDENT AND CONTROLLER OF SONY MUSIC ENTERTAINMENT A UNIT OF SONY CORP MR KELLEHER WHO WAS A PARTNER IN THE MEDIA/ENTERTAINMENT AND MERGERS & ACQUISITIONS GROUPS AT THE PRICE WATERHOUSE ACCOUNTING FIRM SUCCEEDS PAUL J VITALE MR VITALE 42 WHO WAS VICE PRESIDENT AND CONTROLLER WAS NAMED VICE PRESIDENT OF BUSINESS DEVELOPMENT AT THE SONY UNIT ALSO JANEL CLAUSEN WAS NAMED VICE PRESIDENT OF RISK MANAGEMENT A NEW POST FOR THE SONY PICTURES ENTERTAINMENT UNIT SHE HAD BEEN ASSISTANT TREASURER OF RISK MANAGEMENT 9301050086 930105 OTC FOCUS COMPOSITE INDEX DECLINES 515 POINTS FILENET FALLS 7 3/4 ON 4THPERIOD ESTIMATE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET BEGAN THE NEW YEAR BY EASING BACK FROM ITS STRONG 1992 FINISH AS SHARES OF FILENET CORP PLUNGED THE NASDAQ COMPOSITE INDEX DROPPED 515 OR 076 TO 67180 AFTER SETTING A RECORD HIGH FOR 1992 THURSDAY DECLINERS OUTNUMBERED ADVANCERS 1360 TO 1266 ON LIGHT VOLUME OF 1889 MILLION DOWN FROM THURSDAY'S 2032 MILLION THE MARKET WAS CLOSED FRIDAY FOR THE NEW YEAR HOLIDAY THE NASDAQ MARKET WAS UP VERY STRONG WEDNESDAY AND THURSDAY LAST WEEK WHILE INVESTORS WERE GETTING THEIR PORTFOLIOS INTO SHAPE FOR THE END OF THE YEAR SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO IN SAN FRANCISCO MOST OF THOSE BUYERS AREN'T AROUND THIS WEEK AND THOSE WHO ARE AROUND ARE TAKING SOME PROFITS INVESTORS ARE WAITING TO LEARN FOURTHQUARTER RESULTS SAYS JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS WE HAVE THE TAX SELLING OUT OF THE WAY AND WE ARE NOW WAITING TO SEE WHAT MR CLINTON SAYS AFTER HIS INAUGURATION HE ADDED FILENET PLUMMETED 7 3/4 TO 15 AFTER INDICATING DISAPPOINTING FOURTHQUARTER RESULTS THE COSTA MESA CALIF COMPANY SAID IT EXPECTS TO REPORT A LOSS OF 94 CENTS A SHARE WHICH INCLUDES A PRETAX CHARGE FOR RESTRUCTURING FOR THE YEAR ENDED SUNDAY FILENET EXPECTS TO POST A LOSS OF 59 CENTS A SHARE WALL STREET EARNINGS ESTIMATE FOR THE FOURTH QUARTER WAS 31 CENTS A SHARE AND PROJECTIONS FOR THE YEAR RANGED FROM 64 CENTS TO 67 CENTS A SHARE MORGAN STANLEY ANALYST ROBERT MAIRE WHO INITIATED COVERAGE OF FILENET WITH A BUY RECOMMENDATION IN NOVEMBER SAID HE DOWNGRADED THE STOCK YESTERDAY TO A HOLD AND IS IN THE PROCESS OF LOWERING HIS 110ASHARE ESTIMATE FOR THE CURRENT YEAR IT WAS A BIG SURPRISE TO THE COMPANY AND A RATHER LARGE SURPRISE TO US HE SAID FILENET NORMALLY HAS A POP IN THE FOURTH QUARTER MR MAIRE SAID THAT HALF OF THE LOSS COMES FROM RESTRUCTURING COSTS THE RESTRUCTURING CHARGES ARE MOSTLY FROM FILENET'S MOVE TO OFFER ITS DOCUMENT IMAGE PROCESSING SYSTEMS ON OPEN INDUSTRYSTANDARD COMPUTER HARDWARE RATHER THAN ON ITS OWN PROPRIETARY HARDWARE MR MAIRE SAID HE SAID THE COMPANY IS ALSO DOWNSIZING BY 10 TO 15 ITS STAFF OF ABOUT 1000 EMPLOYEES IN JANUARY WHICH WILL RESULT IN SEVERANCE CHARGES THE OTHER HALF OF THE LOSS IS BECAUSE OF DELAYS AND CANCELLATIONS OF PURCHASES BY CUSTOMERS MR MAIRE SAID THE COMPANY SAID THAT WEAKER FOURTHQUARTER SALES LARGELY REFLECTED AN UNUSUAL NUMBER OF CUSTOMERS AND PROSPECTS DELAYING ACQUISITION DECISIONS FOR VARIOUS REASONS AND THAT ITS EUROPEAN OPERATIONS PARTICULARLY IN GERMANY HAD MUCH LOWER REVENUE THAN EXPECTED CUSTOMERS' CAPITALSPENDING CUTBACKS ALSO MIGHT HAVE HELD BACK PURCHASES OF FILENET'S SYSTEMS WHICH SELL FOR AN AVERAGE OF 1 MILLION MR MAIRE SAYS IN 1991 THE COMPANY EARNED 30 CENTS A SHARE IN THE FOURTH QUARTER AND 75 CENTS A SHARE IN THE FULL YEAR MUCH OF YESTERDAY'S PROFITTAKING OCCURRED WITH TECHNOLOGY STOCKS MICROSOFT FELL 1/4 TO 85 1/8 APPLE DROPPED 1 1/2 TO 58 1/4 AND DELL COMPUTER TUMBLED 2 3/4 TO 45 1/4 XILINX DROPPED 1 1/4 TO 24 THE SEMICONDUCTOR COMPANY WAS MENTIONED IN YESTERDAY'S HEARD ON THE STREET COLUMN AS POSSIBLY NOT RISING TO THE PRICE LEVELS INVESTORS EXPECT THIS YEAR THE SAN JOSE CALIF COMPANY MAKES PROGRAMMABLE CHIPS GENELABS TECHNOLOGIES JUMPED 1 1/4 TO 8 GENELABS AND ABBOTT LABORATORIES SAID THEY SIGNED AN AGREEMENT ALLOWING ABBOTT TO DEVELOP AND COMMERCIALIZE PRODUCTS FOR THE DIAGNOSIS AND SCREENING OF HEPATITIS X VIRUS OR HXV UNDER THE AGREEMENT GENELABS BASED IN REDWOOD CITY CALIF WILL RECEIVE LICENSE AND MILESTONE PAYMENTS AND EQUITY INVESTMENTS WHICH HAVE THE POTENTIAL OF EXCEEDING 10 MILLION MORE THAN 50 OF WHICH WILL BE RECEIVED UPON SIGNATURE GENSIA PHARMACEUTICALS GAINED 1 TO 25 1/2 THE SAN DIEGO CALIF COMPANY SAID IT FILED A NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR ARASINE ITS DRUG FOR PATIENTS UNDERGOING CORONARY BYPASS GRAFT SURGERY GENSIA SAID IT ALSO EXPECTS TO FILE A MARKETING AUTHORIZATION APPLICATION FOR ARASINE KENDALL SQUARE RESEARCH FELL 1 1/8 TO 17 1/2 ALEX BROWN & SONS ANALYST JOSEPH PAYNE CUT HIS RATING OF THE SUPERCOMPUTER MAKER TO BUY FROM STRONG BUY HUNGARIAN TELEPHONE & CABLE JUMPED 3 3/8 TO 17 7/8 2 1/2 TIMES LAST WEEK'S INITIAL OFFERING PRICE OF 7 ON DEC 28 THE COMPANY OFFERED 800000 SHARES THROUGH LEAD UNDERWRITER TEXAS CAPITAL SECURITIES THE STOCK HIT 8 3/8 ON ITS FIRST DAY AND HAS BEEN GAINING STEADILY THE NEW YORK CITY COMPANY WAS ORGANIZED IN MARCH TO PROVIDE WORKING CAPITAL TECHNICAL EXPERTISE AND MANAGEMENT SERVICES TO COMMUNITYSPONSORED TELECOMMUNICATION COMPANIES IN HUNGARY 9301050085 930105 BUSINESS BRIEF HELENE CURTIS INDUSTRIES INC THIRDQUARTER NET INCOME ROSE 24 TO 42 MILLION HELENE CURTIS INDUSTRIES INC CHICAGO SAID EARNINGS FOR ITS THIRD QUARTER ENDED NOV 30 ROSE 24 TO 42 MILLION OR 44 CENTS A SHARE ON A 17 INCREASE IN SALES TO 2665 MILLION A YEAR EARLIER THE MAKER OF BEAUTY AND HAIR CARE PRODUCTS EARNED 34 MILLION OR 36 CENTS A SHARE ON SALES OF 2286 MILLION FOR THE NINE MONTHS HELENE CURTIS EARNED 149 MILLION OR 157 A SHARE COMPARED WITH 127 MILLION OR 135 A SHARE SALES ROSE 15 TO 8337 MILLION FROM 7256 MILLION THE COMPANY SAID ITS SALES GROWTH CONTINUES TO BE DRIVEN BY ITS STRATEGY OF BOOSTING EXISTING BRANDS WHILE DEVELOPING NEW BRANDS IT SAID IT RECENTLY BECAME THE MARKET LEADER BOTH IN DOLLAR AND UNIT SALES IN THE HIGHLY COMPETITIVE US HAIR CATEGORY 9301050084 930105 BOEING AND TWO MEMBERS OF AIRBUS PLAN JET VENTURE BRITISH AEROSPACE DAIMLER MAY JOIN IN BUILDING AIRLINER WITH 600 SEATS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO IN A BRAZEN MOVE THAT COULD SHAKE UP THE WORLD'S AVIATION INDUSTRY PLANS TO JOIN WITH TWO MEMBERS OF THE RIVAL AIRBUS INDUSTRIE CONSORTIUM TO PURSUE DEVELOPMENT OF A 600SEAT JETLINER ACCORDING TO PEOPLE FAMILIAR WITH TALKS INVOLVING THE COMPANIES AN AGREEMENT BETWEEN SEATTLEBASED BOEING AND EUROPEAN INDUSTRY GIANTS DAIMLERBENZ AG OF GERMANY AND BRITISH AEROSPACE PLC IS EXPECTED TO BE ANNOUNCED THIS MONTH THE TWO COMPANIES' PARTICIPATION IN THE VENTURE WITH BOEING WOULDN'T REQUIRE THEM TO PULL OUT OF THE AIRBUS CONSORTIUM BECAUSE THEY HAVE NO AGREEMENT WITH AIRBUS TO PRODUCE JETS OF THIS SIZE THE DEVELOPMENT PACT WOULD STILL HAVE TO BE CLEARED BY ANTITRUST REGULATORS IN THE INCOMING CLINTON ADMINISTRATION IT WOULD CARRY RISKS BECAUSE OF THE HEAVY INVESTMENT REQUIRED AND UNCERTAIN DEMAND AND BOEING ULTIMATELY WOULD HAVE TO SHARE PRODUCTION REVENUE AND PROFITS WITH ITS EUROPEAN CORPORATE ALLIES BUT THE POTENTIAL BENEFITS FOR MARKET LEADER BOEING ARE MANY EVEN IN THE SHORT TERM THE AGREEMENT WOULD PRESENT A NEW THREAT TO THE COHESIVENESS OF THE FOURNATION AIRBUS CONSORTIUM BY STEALING SOME OF ITS MOST POWERFUL PLAYERS IN THE POTENT MARKET SEGMENT FOR EVERLARGER JETS THAT EVENTUALLY COULD CARRY AS MANY AS 800 PASSENGERS AT THE SAME TIME IT PROBABLY WOULD PREVENT AIRBUS FROM ATTEMPTING ANY SIMILAR DEVELOPMENT IN THE NEAR TERM AND IT WOULD SPREAD THE COSTS OF RESEARCH AND DEVELOPMENT FOR THE NEXTGENERATION JUMBO JET WHILE CEMENTING BOEING'S CONTROL OVER THE LARGEJET MARKET THAT ALREADY IS DOMINATED BY ITS HIGHLY PROFITABLE 440SEAT 747 JUMBO AIRLINERS PEOPLE WITH KNOWLEDGE OF THE PROPOSED AGREEMENT SAY ITS FIRST PHASE WHICH SHOULD LAST ABOUT A YEAR CALLS FOR STUDIES OF MARKET DEMAND AND SHAREDPRODUCTION SCHEMES LATER PHASES OF THE CONTRACT WOULD ACCELERATE PRODUCTION PLANNING BETWEEN THE THREE PARTNERS AND POSSIBLE ADDITIONAL PARTNERS IN A NEW ALLIANCE THAT WOULD INVEST AN ESTIMATED 10 BILLION TO DEVELOP THE NEW JUMBO JET OVER A PERIOD OF ABOUT EIGHT TO 10 YEARS PEOPLE CLOSE TO THE PROJECT SAY THE ALLIANCE ALSO COULD DECIDE TO DEVELOP A SMALLER SUPERSONIC JETLINER AFTER THE TURN OF THE CENTURY PHILIP CONDIT PRESIDENT OF BOEING CONFIRMED THAT THE COMPANY IS TALKING WITH BOTH DAIMLERBENZ AND BRITISH AEROSPACE ABOUT SUCH A DEVELOPMENT AGREEMENT ALTHOUGH HE WOULD NOT CONFIRM THE TIMING OF ANY ANNOUNCEMENT OR THE COST OF DEVELOPING WHAT BOEING HAS LABELED ITS VERY LARGE AIRPLANE MR CONDIT SAID THAT THE TALKS ARE STILL IN THE FORMATIVE STAGE AND THAT IT REMAINS TO BE SEEN HOW OR EVEN IF THEY WILL PROGRESS TO LATER STAGES BUT HE NOTED THAT OTHER INTERNATIONAL CONCERNS INCLUDING JAPANESE MANUFACTURERS AND AIRBUS CONSORTIUM MEMBER AEROSPATIALE OF FRANCE ALSO COULD BE PART OF ANY EVENTUAL AGREEMENT TO DEVELOP AND BUILD THE NEW GIANT AIRCRAFT WHILE MR CONDIT WOULD NOT PROVIDE DETAILS OF THE TALKS HE SAID BOEING IS DETERMINED TO PROVIDE THE FULL RANGE OF AIRCRAFT THAT THE WORLD'S AIRLINES SAY THEY NEED WE WANT TO MAINTAIN OUR POSITION IN THE MARKET HE SAID IT IS WITH THAT IN MIND THAT WE HAVE GONE OUT TO DEVELOP THESE KINDS OF ARRANGEMENTS OFFICIAL SPOKESMEN FOR THE AIRBUS CONSORTIUM AND ITS LARGEST MEMBER COMPANIES IN BRITAIN AND FRANCE DECLINED COMMENT ON THE CONTRACT TALKS A SPOKESMAN FOR DAIMLERBENZ COULD NOT BE REACHED HOWEVER PEOPLE WHO ARE KNOWLEDGEABLE ABOUT THE TALKS SAID THEY HAVE INCLUDED TOP OFFICIALS AT EACH COMPANY AMONG THEM DAIMLERBENZ CHAIRMAN EDZARD REUTER AND BRITISH AEROSPACE CHIEF EXECUTIVE OFFICER RICHARD H EVANS ROBERT ALIZART AN AIRBUS SPOKESMAN SAID THAT THE MEMBERS OF THE CONSORTIUM ARE FREE TO TALK TO OTHER WOULDBE AIRCRAFT MANUFACTURERS ABOUT COOPERATING ON ANY PRODUCTS THAT DON'T COMPETE WITH THE EXISTING AIRBUS RANGE WE DON'T MANUFACTURE A 600SEAT JET NOR DO WE HAVE PLANS TO LAUNCH ONE AIRBUS WHICH MAKES AIRLINERS OF ALL SIZES UP TO 335 SEATS HAS SAID IN THE PAST IT IS STUDYING A SIMILAR PROJECT BUT IT PLANS NO DECISION ON WHETHER TO PROCEED UNTIL 1997 THE FOURTH MEMBER OF THE AIRBUS CONSORTIUM IS CONSTRUCCIONES AERONAUTICAS SA OF SPAIN DAIMLERBENZ WHICH MAKES FUSELAGE SECTIONS ON AIRBUS JETS THROUGH ITS DEUTSCHE AEROSPACE SUBSIDIARY HAS BEEN MOVING AGGRESSIVELY TO ESTABLISH ITSELF AS THE PREMIER AIRCRAFT PRODUCER IN EUROPE DESPITE ITS COOPERATIVE ROLE IN THE AIRBUS CONSORTIUM ITS ANNUAL REVENUE EXCEEDS 8 BILLION AND EARLIER THIS YEAR IT BOUGHT A CONTROLLING INTEREST IN DUTCH JET MAKER FOKKER NV BRITISH AEROSPACE WHICH MAKES WINGS FOR AIRBUS JETLINERS IS LOOKING TO EXPAND ITS PRESENCE IN NEW MARKETS AS IT GRAPPLES WITH WEAKNESS IN ITS SMALLJET LINES INDUSTRY OFFICIALS FAMILIAR WITH THE TALKS SAY OFFICIALS AT SOME AIRBUS MEMBER COMPANIES BELIEVE BOEING IS MERELY TRYING TO STALL EUROPEAN DEVELOPMENT OF THE NEW JETS MR ALIZART THE AIRBUS SPOKESMAN SAID THAT GIVEN BOEING'S CONTROL OVER THE JUMBOJET MARKET NOW WHY WOULD BOEING BE KEEN TO INTRODUCE A COMPETITOR TO A JET IT ALREADY MONOPOLIZES INDUSTRY OFFICIALS FAMILIAR WITH AIRBUS EXPRESSED SKEPTICISM THAT THE BRITISH AND GERMAN CONCERNS WOULD WANT TO JEOPARDIZE THEIR HEAVY INVESTMENTS IN AIRBUS BY GIVING BOEING MANAGERIAL CONTROL OVER A NEW PRODUCT IN THE MARKETPLACE MR CONDIT SAID BOEING IS DRIVEN BY ITS ASSESSMENT OF CUSTOMER NEEDS BALANCED AGAINST HIGH COSTS AND THE RISK THAT DEMAND WILL DEVELOP SLOWLY THE MARKET FOR GIANT JETS WHICH COULD COST 225 MILLION TO 250 MILLION EACH IS EXPECTED TO EMERGE IN HALTING FASHION AND ONLY AMONG THE WORLD'S BIGGEST AIRLINES OPERATING ON THE LARGEST INTERNATIONAL ROUTES AMONG POTENTIAL BUYERS ARE BRITISH AIRWAYS JAPAN AIR LINES UAL CORP'S UNITED AIRLINES ALL NIPPON AIRWAYS AND LUFTHANSA BECAUSE JAPANESE AIRLINES ARE AMONG THE MOST LIKELY BUYERS THE INCLUSION OF JAPANESE MANUFACTURERS IN A NEW CONSORTIUM COULD BECOME IMPORTANT I THINK IT'S A VERY SAFE ASSUMPTION TO SAY THEY WOULD CERTAINLY BE A KEY PART MR CONDIT SAID GIVEN THE GARGANTUAN DIMENSIONS OF ANY SUCH JET EXPERTS EXPECT THAT ALLNEW FACTORIES WOULD BE REQUIRED IN COUNTRIES WHERE IT IS COPRODUCED WHILE MR CONDIT WOULD NOT DIRECTLY ADDRESS THE EFFECTS ON AIRBUS HE ACKNOWLEGED THAT GIVEN THE COSTS AND THE NATURE OF DEMAND IT IS LIKELY THAT THE MARKET CAN SUSTAIN ONLY ONE PRODUCER OF A GIANT JETLINER HOWEVER MR CONDIT SAID THAT DOES NOT NECESSARILY INVITE US GOVERNMENT ACTION TO HALT THE ARRANGEMENT ON ANTITRUST GROUNDS 9301050083 930105 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JAN 1 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALLEGHENY COUNTY PA EDGEWOOD SCHOOL DISTRICT WILL REDEEM ON FEB 1 1993 80000 PRINCIPAL AMOUNT OF ITS 59 1977 GENERAL OBLIGATION REFUNDING BONDS DUE AUG 1 1999 MELLON BANK PITTSBURGH IS PAYING AGENT ATLANTIC CITY NJ HOUSING FINANCE CORP WILL REDEEM ON FEBRUARY 1 1993 65000 PRINCIPAL AMOUNT OF ITS 7 3/4 MORTGAGE REVENUE BONDS DUE FEBRUARY 1 2003 UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE BREVARD COUNTY HOUSING FINANCE AUTHORITY WILL REDEEM ON FEBRUARY 1 1993 ITS SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES 1980B BARNETT BANKS TRUST CO NEW YORK IS TRUSTEE CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON FEB 1 1993 THE FOLLOWING POLLUTION CONTROL REVENUE BONDS FOR SMALL BUSINESSES ITS 58 BONDS 1979 SERIES A4 AND A11 DUE AUG 1 1999 560000 PRINCIPAL AMOUNT OF ITS 525 1978 SERIES A BONDS DUE FEB 1 1998 2025000 OF 745 1980 SERIES A2 AND A6 DUE FEB 1 2000 AND 25000 OF 745 1980 SERIES A3 AND A4 DUE FEB 1 2004 CALIFORNIA STATE TREASURER IS TRUSTEE CAMARILLO SANITARY DISTRICT WILL REDEEM ON FEB 1 1993 ITS SERIES 1964A SEWER REVENUE BONDS BANK OF AMERICA GLENDALE CALIF IS PAYING AGENT CARSON REDEVELOPMENT AGENCY WILL REDEEM ON FEB 1 1993 ITS PROJECT NO 1 TAX ALLOCATION REFUNDING BONDS 1975 ISSUE DUE AUG 1 199399 BANK OF AMERICA GLENDALE CALIF IS FISCAL AGENT DELAWARE COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 1 1993 175000 PRINCIPAL AMOUNT OF ITS 6 1977 SERIES POLLUTION CONTROL REVENUE BONDS DUE FEB 1 2007 FIDELITY BANK PHILADELPHIA IS TRUSTEE HICKORY TOWNSHIP PA MUNICIPAL AUTHORITY WILL REDEEM ON FEB 1 1993 40000 PRINCIPAL AMOUNT OF ITS 5875 SERIES 1974 SEWER REVENUE BONDS DUE FEB 1 1994 MELLON BANK PITTSBURGH IS TRUSTEE HIGHLAND PARK ILL WILL REDEEM ON FEB 1 1993 165000 PRINCIPAL AMOUNT OF ITS SERIES 1979 RESIDENTIAL MORTGAGE REVENUE BONDS DUE FEB 1 199499 AND 2009 FIRST WISCONSIN TRUST CO IS TRUSTEE ILLINOIS ENVIRONMENTAL FACILITIES FINANCING AUTHORITY WILL REDEEM ON FEB 1 1993 ITS SERIES 1981 A1 SMALL BUSINESS POLLUTION CONTROL REVENUE BONDS DUE AUG 1 2001 LASALLE NATIONAL TRUST CHICAGO IS TRUSTEE ILLINOIS HEALTH FACILITIES AUTHORITY WILL REDEEM ON FEB 1 1993 1210000 PRINCIPAL AMOUNT OF ITS SERIES 1976 A REVENUE BONDS DUE FEB 1 2004 CONTINENTAL BANK CHICAGO IS TRUSTEE JEFFERSON CITY TENN INDUSTRIAL DEVELOPMENT BOARD WILL REDEEM ON FEB 1 1993 ITS SERIES 1983 INDUSTRIAL DEVELOPMENT REVENUE REFUNDING BONDS DUE FEB 1 199495 1998 2003 AND 2008 BOATMEN'S FIRST NATIONAL BANK OF OKLAHOMA OKLAHOMA CITY IS TRUSTEE LAMAR COUNTY WATER SUPPLY DISTRICT WILL REDEEM ON FEB 1 1993 ITS 7 SERIES 1979 ENVIRONMENTAL IMPROVEMENT REVENUE BONDS NATIONSBANK OF TEXAS HOUSTON IS TRUSTEE LOS ANGELES COUNTY CORONER'S BUILDING CORP WILL REDEEM ON FEB 1 1993 ITS LEASEHOLD MORTGAGE REVENUE BONDS DUE AUG 1 199396 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE LOS ANGELES COUNTY HOUSING AUTHORITY WILL REDEEM ON FEB 1 1993 100000 PRINCIPAL AMOUNT OF ITS 6 HOUSING DEVELOPMENT REVENUE BONDS SERIES 1977 DUE FEB 1 2009 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE LONG BRANCH NJ HOUSING FINANCE CORP WILL REDEEM ON FEB 1 1993 150000 PRINCIPAL AMOUNT OF ITS 7 3/8 MORTGAGE REVENUE BONDS 1979 PROJECT DUE FEB 1 1995 UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE NAPA CALIF WILL REDEEM ON FEB 1 1993 ITS SERIES 1982 MORTGAGE REVENUE BONDS BANK OF AMERICA GLENDALE CALIF IS TRUSTEE NEW JERSEY EXPRESSWAY AUTHORITY WILL REDEEM ON FEB 1 1993 205000 PRINCIPAL AMOUNT OF ITS 4 1/4 SERIES B ATLANTIC CITY EXPRESSWAY REVENUE BONDS DUE DEC 1 2003 AND 1760000 PRINCIPAL AMOUNT OF ITS 4 3/4 SERIES A ATLANTIC CITY EXPRESSWAY REVENUE BONDS DUE DEC 1 2002 FIDELITY BANK PHILADELPHIA IS PAYING AGENT NEW JERSEY HOUSING FINANCE AGENCY WILL REDEEM ON JAN 21 1993 THE FOLLOWING BONDS DUE NOV 1 OF THE INDICATED YEAR MORTGAGE REVENUE BONDS ISSUE A 7 BONDS DUE 1995 AND 7375 DUE 2015 MULTIFAMILY HOUSING BONDS 1977 SERIES ONE 54 DUE 1993 55 DUE 1994 56 DUE 1995 59 DUE 2009 AND 5 DUE 2021 MULTIFAMILY HOUSING BONDS 1978 SERIES ONE 61 DUE 1993 62 DUE 1994 63 DUE 1995 64 DUE 1996 65 DUE 1997 66 DUE 1998 67 DUE 1999 675 DUE 200002 7 DUE 2018 AND 6 DUE 2021 ALSO CALLED ARE THE FOLLOWING HOUSING REVENUE BONDS 1978 SERIES A DUE SEPT 1 OF THE INDICATED YEAR 62 DUE 1993 625 DUE 199495 63 DUE 199698 67 DUE 2008 AND 7 DUE 2028 FIRST FIDELITY BANK PHILADELPHIA IS TRUSTEE NEW YORK & NEW JERSEY PORT AUTHORITY WILL REDEEM ON FEB 1 1993 THE FOLLOWING 10 1/2 SPECIAL PROJECT BONDS SERIES 1 FIRST INSTALLMENT DUE FEB 1 2002 AND SECOND INSTALLMENT DUE FEB 1 2008 BANK OF NEW YORK IS TRUSTEE PETERS TOWNSHIP PA SANITARY AUTHORITY WILL REDEEM ON FEB 1 1993 20000 PRINCIPAL AMOUNT OF ITS 565 SERIES C GUARANTEED SEWER REVENUE REFUNDING BONDS DUE AUG 1 1994 MELLON BANK PITTSBURGH IS TRUSTEE PHILIPSBURGOSCEOLA PA AREA SCHOOL AUTHORITY WILL REDEEM ON FEB 1 1993 ITS 63 1972 SCHOOL REVENUE BONDS DUE JULY 1 1998 MELLON BANK PITTSBURGH IS TRUSTEE FACILITIES FINANCING AUTHORITY WILL REDEEM ON JAN 21 1993 THE FOLLOWING 1980 SERIES A HOSPITAL REVENUE BONDS 1440000 PRINCIPAL AMOUNT OF 10 BONDS DUE JUNE 1 1997 AND 10220000 OF 10 1/2 BONDS DUE JUNE 1 2010 BANCO POPULAR DE PUERTO RICO SAN JUAN IS TRUSTEE QUAKER VALLEY PA JOINT SCHOOL AUTHORITY WILL REDEEM ON FEB 1 1993 THE FOLLOWING SERIES 1973A SCHOOL BUILDING REVENUE BONDS 265000 PRINCIPAL AMOUNT OF 55 BONDS DUE FEB 1 1995 AND 305000 OF 57 DUE FEB 1 2003 MELLON BANK PITTSBURGH IS TRUSTEE RICHLAND GA DOWNTOWN DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 1 1993 45000 PRINCIPAL AMOUNT OF ITS 13875 SERIES 1983 FIRST MORTGAGE MEDICAL REVENUE BONDS DUE FEB 1 1998 FIRST UNION NATIONAL BANK CHARLOTTE NC IS TRUSTEE ST MARYS PA AREA JOINT WATER AUTHORITY WILL REDEEM ON FEB 1 1993 70000 PRINCIPAL AMOUNT OF ITS 6875 WATER REVENUE BONDS SERIES 1970A DUE FEB 1 1995 MELLON BANK PITTSBURGH IS TRUSTEE SAN BUENAVENTURA WILL REDEEM ON FEB 1 1993 115000 PRINCIPAL AMOUNT OF ITS 54 1969 WATER REVENUE BONDS DUE FEB 1 1999 AND 85000 OF ITS 55 1970 WATER REVENUE BONDS SERIES B DUE FEB 1 2002 BANK OF AMERICA GLENDALE CALIF IS FISCAL AGENT SAN LEANDRO HOUSING FINANCE CORP WILL REDEEM ON FEB 1 1993 THE FOLLOWING SERIES 1983 MORTGAGE REVENUE BONDS SERIAL BONDS 10 3/4 DUE AUG 1 1993 8 3/4 DUE FEB 1 AND AUG 1 1994 AND 9 DUE FEB 1 AND AUG 1 1995 ALSO CALLED ARE MULTIPLIER BONDS DUE 19962006 BANK OF AMERICA GLENDALE CALIF IS TRUSTEE SAXONBURG PA AREA AUTHORITY WILL REDEEM ON JAN 28 1993 ITS 7 AND 7 1/4 SERIES 1979 SEWER AND WATER REVENUE BONDS DUE MARCH 1 2010 AND 2019 RESPECTIVELY MELLON BANK PITTSBURGH IS TRUSTEE UNIVERSITY OF VIRGINIA RECTOR & VISITORS CALL FOR PARTIAL REDEMPTION ON FEB 1 1993 THE SERIES 1972 FACULTY HOUSING REVENUE BONDS DUE FEB 1 1997 NATIONSBANK ATLANTA IS TRUSTEE WASHINGTON NJ MUNICIPAL UTILITIES AUTHORITY WILL REDEEM ON FEB 1 1993 60000 PRINCIPAL AMOUNT OF ITS 6 SERIES C REVENUE BONDS DUE FEB 1 2005 UNITED JERSEY BANK HACKENSACK NJ IS TRUSTEE WEIRTON WVA MUNICIPAL HOSPITAL BUILDING COMMISSION WILL REDEEM ON FEB 1 1993 THE FOLLOWING FIRST MORTGAGE REVENUE REFUNDING BONDS SERIES 1977 BONDS 67 DUE MAY 1 1996 AND 7 DUE MAY 1 2004 SERIES 1979 BONDS 8 DUE MAY 1 2004 UNITED NATIONAL BANK PARKERSBURG WVA IS TRUSTEE WESTERN IOWA MUNICIPAL ELECTRIC COOPERATIVE ASSOCIATION WILL REDEEM ON FEB 1 1993 THE FOLLOWING SERIES 1977 ELECTRIC REVENUE BONDS 55 DUE AUG 1 1993 56 DUE AUG 1 1994 AND 625 DUE AUG 1 2004 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE WILLIAMSPORT PA AREA JOINT SCHOOL AUTHORITY WILL REDEEM ON FEB 1 1993 380000 PRINCIPAL AMOUNT OF ITS 57 SERIES 1969 SCHOOL REVENUE BONDS DUE FEB 1 2006 MELLON BANK PITTSBURGH IS TRUSTEE YORK COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON FEB 1 1993 260000 PRINCIPAL AMOUNT OF ITS 6 1977 SERIES POLLUTION CONTROL REVENUE BONDS DUE FEB 1 2007 FIDELITY BANK PHILADELPHIA IS TRUSTEE CENTRAL POWER & LIGHT CO A UNIT OF CENTRAL & SOUTH WEST CORP WILL REDEEM ON JAN 7 1993 ITS 8 3/4 SERIES K FIRST MORTGAGE BONDS DUE JAN 1 2000 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE NORTHERN ILLINOIS GAS CO A UNIT OF NICOR INC WILL REDEEM ON JAN 31 1993 THE FOLLOWING FIRST MORTGAGE BONDS 7 5/8 DUE JULY 1 1997 8 DUE JULY 1 1998 AND 8 3/4 DUE JULY 1 2001 CONTINENTAL BANK CHICAGO IS TRUSTEE 9301050082 930105 BUSINESS BRIEF UNITED WASTE SYSTEMS INC COMPANY CLOSES ACQUISITION OF THREE GARBAGE CONCERNS UNITED WASTE SYSTEMS INC WHICH WENT PUBLIC ON DEC 10 SAID IT COMPLETED THE ACQUISITION OF THREE SOLIDWASTE COMPANIES TERMS WEREN'T DISCLOSED THE ACQUIRED COMPANIES ARE ABLE SANITATION INC GRAND RAPIDS MICH WITH ANNUAL REVENUE OF ABOUT 111 MILLION KELLY RUN SANITATION INC ELIZABETH PA WITH REVENUE OF ABOUT 91 MILLION AND ROTTI'S RUBBISH REMOVAL INC WEST BOYLSTON MASS WITH REVENUE OF ABOUT 900000 UNITED WASTE SYSTEMS BASED IN GREENWICH CONN SAID IT ALSO ENTERED INTO A NONBINDING LETTER OF INTENT TO ACQUIRE ANOTHER GARBAGECOLLECTION COMPANY WITH REVENUE OF ABOUT 15 MILLION 9301050081 930105 BUSINESS BRIEF NEW PLAN REALTY TRUST REIT TO BUY OUTLET CENTER FROM UNIT OF ANGELES CORP NEW PLAN REALTY TRUST SAID IT WILL BUY FACTORY MERCHANTS MALL OSAGE BEACH MO FROM FACTORY MERCHANTS MALL INC A UNIT OF ANGELES CORP LOS ANGELES FOR 30 MILLION THE OUTLET CENTER HAS 90 FACTORYOPERATED STORES OCCUPYING 325000 SQUARE FEET OF RETAIL SPACE TENANTS INCLUDE ANNE KLEIN NIKE GUESS MIKASA VAN HEUSEN LENOX REEBOK AND LESLIE FAY THE OUTLET CENTER BUILT ON 41 ACRES OF LAND HAS 20 ADDITIONAL ACRES AVAILABLE FOR EXPANSION NEW PLAN A NEW YORK REAL ESTATE INVESTMENT TRUST THAT OWNS 79 SHOPPING CENTERS AND 11 GARDEN APARTMENTS IN 17 STATES SPENT 200 MILLION IN ACQUIRING 21 PROPERTIES IN 1992 9301050080 930105 BUSINESS BRIEF UNION CAMP CORP FOURTH QUARTER TO INCLUDE CHARGE FOR DEBT REFINANCING UNION CAMP CORP WAYNE NJ SAID IT WILL TAKE A CHARGE OF NINE CENTS A SHARE FOR THE 1992 FOURTH QUARTER AND 12 CENTS A SHARE FOR THE YEAR AS A RESULT OF DEBT REFINANCINGS THE PAPER PACKAGING CHEMICAL AND BUILDINGPRODUCT CONCERN SAID THAT THIS YEAR IT REFINANCED A TOTAL OF ABOUT 300 MILLION OF LONGTERM DEBT WHICH WILL REDUCE INTEREST COSTS BY 10 MILLION A YEAR AND BRING THE COMPANY'S AVERAGE INTEREST RATE ON EXISTING LONGTERM DEBT TO 85 UNION CAMP REPORTED 1991 FOURTHQUARTER EARNINGS OF 20 MILLION OR 29 CENTS A SHARE ON SALES OF 746 MILLION AND YEAR EARNINGS OF 1248 MILLION OR 180 A SHARE ON SALES OF 297 BILLION 9301050079 930105 BUSINESS BRIEF AIRGAS INC FIRM BUYS 3 GAS DISTRIBUTORS TO FURTHER ITS EXPANSION AIRGAS INC PURCHASED THREE INDUSTRIAL GAS DISTRIBUTORS FURTHERING ITS REGIONAL EXPANSION THROUGH THE ACQUISITION OF SMALLER GAS COMPANIES THE COMPANIES CRYODYNE CORP DANBURY CONN GAYLEY INDUSTRIES HARTFORD CONN AND TRISTATE WELDING CO LOGAN WVA EACH DISTRIBUTE INDUSTRIAL MEDICAL AND SPECIALTY GASES AND EQUIPMENT THEIR COMBINED REVENUES EXCEED 10 MILLION ANNUALLY AIRGAS SAID AIRGAS WILMINGTON DEL DID NOT DISCLOSE THE TERMS OF THE PURCHASES BUT TOGETHER THEY COST LESS THAN 10 MILLION ACCORDING TO STEVE KAPP ASSISTANT VICE PRESIDENT OF CORPORATE DEVELOPMENT SINCE LAST APRIL AIRGAS HAS PURCHASED 13 DISTRIBUTORS WITH REVENUES IN EXCESS OF 38 MILLION BRINGING THE GAS DISTRIBUTOR'S ANNUAL REVENUE TO MORE THAN 400 MILLION AIRGAS SAID 9301050078 930105 WESTINGHOUSE'S EFFORT TO SHED ASSETS ADVANCES BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP APPEARS CLOSE TO AGREEMENT ON PRICE FOR THE SALE OF LOSSPLAGUED WESTINGHOUSE CREDIT CORP'S LOAN PORTFOLIO TO GENERAL ELECTRIC CORP BUT OTHER ISSUES STILL COULD DERAIL THE TALKS PEOPLE CLOSE TO THE TALKS SAID THE PRICE IS WITHIN ABOUT 150 MILLION OF THE PORTFOLIO'S BOOK VALUE WHICH WAS ABOUT 41 BILLION AS OF SEPT 30 BUT GE COULD STILL HOLD FIRM ON PRICE AND WESTINGHOUSE ABSOLUTELY WON'T TAKE LESS THAN BOOK VALUE SAID ONE PERSON FAMILIAR WITH WESTINGHOUSE'S THINKING AMONG OTHER OBSTACLES ARE TERMS UNDER WHICH GE WOULD ASSUME COMMITMENTS TO LEND NEW FUNDS TO EXISTING CUSTOMERS AND WHETHER BORROWERS' CONTRACTS ALLOW THE TRANSFER OF LOANS TO A NEW OWNER NEITHER GE NOR WESTINGHOUSE WOULD COMMENT THE SEPT 30 BOOK VALUE OF 41 BILLION INCLUDES SOME UNDETERMINED ASSETS SINCE SOLD ALSO WESTINGHOUSE WANTS GE TO ASSUME RESPONSIBILITY FOR THE UNIT'S COMMITMENTS TO MAKE ABOUT 300 MILLION IN ADDITIONAL LOANS TO EXISTING BORROWERS THE DEAL WOULDN'T INCLUDE THE UNIT'S 14 BILLION LEASING PORTFOLIO WHICH HAS SEEN FEW OF THE CREDIT QUALITY PROBLEMS EXPERIENCED IN THE LOAN PORTFOLIO A SPEEDY SALE WOULD BE A RELIEF FOR WESTINGHOUSE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER PAUL LEGO WHO SAID IN NOVEMBER IT COULD TAKE THREE YEARS TO SHED THE CREDIT UNIT PIECEMEAL PEOPLE CLOSE TO THE TALKS SAID HE ALREADY HAS MET AT LEAST TWICE WITH JOHN F WELCH CEO OF GE WHICH IS ONE OF THE FEW BUYERS FINANCIALLY ABLE TO BUY THE LOAN PORTFOLIO IF THE TALKS FAIL WESTINGHOUSE IS EXPECTED TO SELL THE UNIT'S LOANS INDIVIDUALLY OR IN BUNDLES BAD LOANS AT WESTINGHOUSE CREDIT WHICH HAD 83 BILLION IN ASSETS ON SEPT 30 HAS CAUSED MORE THAN 5 BILLION IN PRETAX WRITEDOWNS OVER THE PAST TWO YEARS IN ADDITION TO SELLING THE CREDIT UNIT THE PLAN MR LEGO OUTLINED IN NOVEMBER WOULD RAISE 36 BILLION BY SELLING OTHER ASSETS THESE INCLUDE ITS DISTRIBUTION & CONTROL UNIT WHICH INITIALLY WAS INCLUDED IN THE SALE DISCUSSIONS WITH GE BUT WAS DROPPED FROM THE TALKS BEFORE CHRISTMAS SAID PEOPLE FAMILIAR WITH THOSE TALKS OTHER UNITS ON THE BLOCK INCLUDE WESTINGHOUSE ELECTRIC SUPPLY CO WESTINGHOUSE COMMUNITIES A REALESTATE DEVELOPER AND KNOLL GROUP AN OFFICE FURNITURE BUSINESS MOST OF THE CASH RAISED WOULD GO TO CUT DEBT BY 57 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WESTINGHOUSE CLOSED AT 13875 A SHARE UP 50 CENTS SEPARATELY WESTINGHOUSE FINANCIAL SERVICES THE PARENT OF WESTINGHOUSE CREDIT COMPLETED THE SALE OF WESTINGHOUSE FEDERAL BANK AN ILLINOIS THRIFT FOR ABOUT 53 MILLION TO FIRST FINANCIAL CORP'S FIRST FINANCIAL BANK UNIT BASED IN STEVENS POINT WISC THE PRICE APPROXIMATES WESTINGHOUSE FINANCIAL SERVICES' CARRYING VALUE THE COMPANIES SAID 9301050077 930105 INTERNATIONAL BRIEF TARMAC PLC BRITISH FIRM AGREES TO SELL TWO UNITS FOR 197 MILLION THE DIVERSIFIED BRITISH BUILDING MATERIALS GROUP TARMAC PLC SAID IT AGREED TO SELL TWO SMALL UNITS TO RAISE ABOUT 13 MILLION 197 MILLION FOR ITS DEBTREDUCTION PROGRAM TARMAC SAID THE DISPOSALS COVER ITS DOOR MANUFACTURING UNIT BOLTON BRADY LTD WHICH WILL BE BOUGHT BY A MANAGEMENTLED TEAM AS WELL AS THE SALE OF ITS FRENCH WATERPROOFING UNIT MEPLE SA TO IKO OF CANADA IT DIDN'T GIVE A BREAKDOWN OF FINANCIAL DETAILS FOR THE TWO SALES OR RECENT RESULTS FROM THE UNITS TARMAC SAID THE SALES FIT INTO ITS PREVIOUSLY ANNOUNCED DRIVE TO REFOCUS OPERATIONS ON ITS STRENGTHS IN QUARRYING CONSTRUCTION AND HOUSE BUILDING IT NOTED THAT 10 BUSINESSES HAVE BEEN SOLD SINCE THE PLAN WAS UNVEILED LAST SPRING RAISING ABOUT 150 MILLION 9301050076 930105 BUSINESS BRIEF CYTOCARE INC FIRM GE SETTLE DISPUTE OVER PRODUCT DISTRIBUTION CYTOCARE INC SAID IT SETTLED A 1991 DISPUTE WITH GENERAL ELECTRIC CO ARISING OUT OF AN AGREEMENT IN WHICH A GE SUBSIDIARY DISTRIBUTED CYTOCARE'S LITHOTRIPSY PRODUCTS IN CERTAIN EUROPEAN AND MIDDLE EASTERN COUNTRIES CYTOCARE OF IRVINE CALIF A MAKER OF PRODUCTS TO TREAT KIDNEY AND PROSTATE DISEASE SAID TERMS OF THE SETTLEMENT ARE CONFIDENTIAL THE SETTLEMENT WILL TRIGGER A ONETIME REVENUE RECOGNITION IN THE FOURTH QUARTER CYTOCARE SAID IN OCTOBER 1991 GE'S GE/CGR SA SUBSIDIARY SUED CYTOCARE IN FEDERAL COURT IN LOS ANGELES FOR BREACH OF CONTRACT CYTOCARE COUNTERSUED CLAIMING AMONG OTHER THINGS THE RIGHT TO RETAIN FUNDS IT RECEIVED FROM THE SALE OF TWO LITHOTRIPTERS LITHOTRIPTERS ARE USED TO TREAT KIDNEY STONES 9301050075 930105 BUSINESS BRIEF CONNER PERIPHERALS INC FIRM'S 4THQUARTER CHARGE RELATED TO ARCHIVE PURCHASE CONNER PERIPHERALS INC SAID IT WILL TAKE AN AFTERTAX CHARGE OF 30 MILLION TO 35 MILLION IN THE FOURTH QUARTER THE CHARGE IS RELATED TO THE DISK DRIVE MAKER'S 150 MILLION ACQUISITION OF ARCHIVE CORP WHICH IT COMPLETED LAST WEEK CARL NEUN CONNER'S CHIEF FINANCIAL OFFICER SAID THE CHARGE REFLECTS A WRITEDOWN OF CERTAIN RESEARCH AND DEVELOPMENT INVESTMENTS MADE BY ARCHIVE ARCHIVE COSTA MESA CALIF ALSO MAKES DISK DRIVES CONNER BASED IN SAN JOSE CALIF PREVIOUSLY TOLD ANALYSTS THAT IT ANTICIPATED A CHARGE IN THE QUARTER AS A RESULT OF THE ACQUISITION BUT THE COMPANY HADN'T INDICATED HOW LARGE THE CHARGE WOULD BE WALL STREET APPEARED TO TAKE THE NEWS IN STRIDE HOWEVER IN NEW YORK STOCK EXCHANGE TRADING LATE YESTERDAY CONNER WAS QUOTED AT 20125 UP 625 CENTS 9301050074 930105 INTERNATIONAL BRIEF GEORGE WIMPEY PLC FURTHER PROVISIONS PLANNED DUE TO REAL ESTATE DECLINE BRITISH BUILDING CONTRACTOR GEORGE WIMPEY PLC SAID IT EXPECTS TO TAKE SUBSTANTIAL FURTHER PROVISIONS FOR THE REDUCED VALUE OF ITS COMMERCIAL AND RESIDENTIAL PROPERTIES AGAINST 1992 ACCOUNTS WIMPEY ALSO SAID THAT IT CONDITIONALLY SOLD ITS CLAYTON SQUARE SHOPPINGCENTER DEVELOPMENT IN LIVERPOOL TO AN UNIDENTIFIED PARTY FOR ABOUT 20 MILLION 303 MILLION THE SALE WILL RESULT IN AN 11 MILLION PROVISION AGAINST 1992 RESULTS WIMPEY SAID BUT WILL HAVE LITTLE EFFECT ON THE COMPANY'S BALANCE SHEET BECAUSE OF A 464 MILLION PROPERTY PROVISION TAKEN AGAINST 1991 ACCOUNTS THE COMPANY SAID IT WILL REPORT 1992 RESULTS IN MIDMARCH WIMPEY SAID THE 150000SQUAREFOOT SHOPPING CENTER HAS BEEN 98LEASED SINCE BEING COMPLETED IN 1988 TENANTS INCLUDE BOOTS CO AND WALT DISNEY CO 9301050073 930105 BUSINESS BRIEF AIR HONG KONG CARGO CARRIER HOLDS TALKS ON MOVING FACILITY TO CHINA AIR HONG KONG A CARGO CARRIER IS HOLDING PRELIMINARY TALKS WITH SHENZHEN AIRPORT OFFICIALS FOR A POSSIBLE RELOCATION OF ITS FACILITY ACROSS THE BORDER IN CHINA THE AIRLINE'S PRESIDENT SAID PRAN PARASHAR SAID THE COMPANY 50 CONTROLLED BY CASINO TYCOON STANLEY HO IS EXPLORING EVERY AVENUE TO CUT COSTS AND AVOID OVERCAPACITY AT KAI TAK INTERNATIONAL AIRPORT IN HONG KONG AND SHENZHEN IS A VIABLE OPTION TO DO SO BECAUSE OF ITS LOWER CHARGES AND CHEAPER LABOR MR PARASHAR HOWEVER DECLINED TO DISCLOSE MORE DETAILS OF THE TALKS IN NOVEMBER CARGOLUX A CARGO CARRIER BASED IN LUXEMBOURG BECAME THE FIRST OVERSEAS AIRLINE TO USE THE SHENZHEN FACILITY OPENED IN MID1992 SHENZHEN OFFICIALS SAID MORE THAN A DOZEN AIRLINES HAVE ALSO EXPRESSED INTEREST IN USING THE AIRPORT 9301050072 930105 BUSINESS BRIEF KYOTARU CO JAPAN RESTAURANT CONCERN TO LIQUIDATE 2 US UNITS KYOTARU CO A JAPANESE RESTAURANT AND TAKEOUT SUSHI SHOP OPERATOR SAID IT WILL LIQUIDATE TWO UNPROFITABLE US UNITS THE COMPANY SAID IT WILL RECORD AN EXTRAORDINARY LOSS OF 778 MILLION YEN 62 MILLION FOR 1992 IN CONNECTION WITH THE LIQUIDATION OF KYOTARU AMERICA CORP AND TACO EL PASO INC KYOTARU AMERICA IS A CALIFORNIABASED SEAFOOD RESTAURANT OPERATOR TACO EL PASO IS A HAWAIIBASED MEXICANRESTAURANT CHAIN AS A RESULT OF THE EXTRAORDINARY LOSS KYOTARU SAID ITS CORPORATE TAX PAYMENTS FOR THE YEAR WILL BE REDUCED BY 400 MILLION YEN LEAVING A NET 378 MILLION YEN CHARGE TO UNCONSOLIDATED AND CONSOLIDATED RESULTS THE COMPANY PREDICTS IT WILL SHOW AN UNCONSOLIDATED LOSS OF 1182 BILLION YEN FOR THE YEAR KYOTARU'S CONSOLIDATED LOSS FOR THE YEAR WILL COME TO 1404 BILLION YEN THE COMPANY SAID 9301050071 930105 BUSINESS BRIEF REPLIGEN CORP SANDOZ TO BUY 40 STAKE FROM JOINT VENTURE PARTNER REPLIGEN CORP SAID SANDOZ LTD OF BASEL SWITZERLAND HAS PAID AN UNDISCLOSED AMOUNT TO ACQUIRE REPLIGEN'S 40 INTEREST IN REPLIGEN SANDOZ RESEARCH CORP SINCE 1987 THE TWO COMPANIES HAVE BEEN OPERATING REPLIGEN SANDOZ RESEARCH A JOINT VENTURE IN LEXINGTON MASS THAT DEVELOPS CHEMICALS SUCH AS ENZYMES FOR PAPER PRODUCTION UNDER THE AGREEMENT REPLIGEN WILL CONTINUE TO RECEIVE ROYALTIES FOR CERTAIN PRODUCTS DEVELOPED BY THE JOINT VENTURE SANDOZ A MAKER OF CHEMICALS AND PHARMACEUTICALS ALSO PURCHASED 320000 SHARES OF REPLIGEN COMMON STOCK AT 1250 PER SHARE FOR A TOTAL INVESTMENT OF 4 MILLION REPLIGEN OF CAMBRIDGE MASS DEVELOPS AND MANUFACTURES BIOPHARMACEUTICALS PRIMARILY FOR TREATMENT OF CANCER AIDS AND INFLAMMATION REPLIGEN SANDOZ RESEARCH WILL NOW BE KNOWN AS SANDOZ CHEMICALS BIOTECH RESEARCH CORP 9301050070 930105 QUOTRON SELLS INTERNATIONAL EQUITIES AND BACKOFFICE OPERATIONS TO ADP BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP'S QUOTRON SYSTEMS INC SOLD TWO OF ITS SMALLER OPERATIONS TO AUTOMATIC DATA PROCESSING INC SETTLING A COPYRIGHT INFRINGEMENT LAWSUIT AGAINST THE ROSELAND NJ COMPANY QUOTRON SOLD TO ADP FOR AN UNDISCLOSED AMOUNT ITS INTERNATIONAL EQUITIES BUSINESS CONSISTING OF 2000 BROKERAGE TERMINALS IN EUROPE AND THE FAR EAST AND ITS SECURITIES INDUSTRY SOFTWARE CORP UNIT WHICH PROCESSES BACKOFFICE SECURITIES TRANSACTIONS FOR BROKERAGE FIRMS ADP ALSO SIGNED A PERPETUAL LICENSING AGREEMENT FOR CERTAIN QUOTRON SOFTWARE USED IN DISTRIBUTING STOCKMARKET INFORMATION TO BROKERS AS A RESULT OF THE SALE THE TWO COMPANIES AGREED TO SETTLE A COPYRIGHT INFRINGEMENT LAWSUIT BROUGHT IN SEPTEMBER 1991 BY QUOTRON AGAINST ADP QUOTRON'S PRESIDENT AND CHIEF EXECUTIVE THOMAS CIRILLO SAID THE SALE WILL REDUCE THE CITICORP UNIT'S OPERATING LOSSES BUT DECLINED TO BE MORE SPECIFIC QUOTRON'S LOSSES NARROWED IN THE THIRD QUARTER TO A 12 MILLION TOTALING 33 MILLION FOR THE YEAR TO DATE MORE THAN A YEAR AGO CITICORP TOOK A 400 MILLION CHARGE AGAINST EARNINGS TO WRITE DOWN ITS INVESTMENT IN QUOTRON WHICH HASN'T TURNED A PROFIT FOR THE BANKING GIANT SINCE IT WAS PURCHASED IN 1986 FOR ABOUT 630 MILLION ADP THE DOMINANT PROVIDER OF STOCKMARKET INFORMATION FOR BROKERS HAS PREVIOUSLY SAID IT HAS NO INTEREST IN BUYING THE ENTIRE CITICORP UNIT OR ITS DOMESTIC BROKERAGE BUSINESS WHICH INCLUDES 58000 TERMINALS OFFICIALS WITH ADP WHICH HAD 71000 TERMINALS BEFORE THE ACQUISITION OF QUOTRON'S OVERSEAS TERMINALS HAVE SAID THEY EXPECT TO CONTINUE GAINING MARKET SHARE AT THE EXPENSE OF QUOTRON AND DON'T NEED TO BUY THE UNIT TO DO SO BUT QUOTRON'S MR CIRILLO VOWED TO REMAIN A STIFF ADP COMPETITOR USING UPDATED TECHNOLOGY TO CONCENTRATE ON REGIONAL BROKERAGE AND INSTITUTIONAL CUSTOMERS THE TRANSACTION ALSO ALLOWS QUOTRON TO FOCUS ON ITS PROMISING GLOBAL FOREIGN EXCHANGE OPERATIONS THE ACQUISITION GIVES ADP A STRONGER FOOTHOLD OVERSEAS WHERE IT HAS BEEN SEEKING TO EXPAND ITS BROKERAGE SERVICE OPERATIONS BUT THE COMPANY WILL STILL BE A RELATIVELY SMALL COMPETITOR INTERNATIONALLY WHERE INFORMATION ABOUT FINANCIAL MARKETS IS DOMINATED BY REUTERS HOLDINGS PLC FOLLOWED BY TELERATE INC A UNIT OF DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL ADP WILL FURTHER SECURE ITS DOMINANCE AMONG PROCESSORS OF BACKOFFICE SECURITIES TRANSACTIONS WITH THE ACQUISITION OF QUOTRON'S PROCESSING SUBSIDIARY ADP WHICH ALREADY PROCESSES 20 TO 25 OF DAILY NEW YORK STOCK EXCHANGE VOLUME DECLINED TO SAY HOW LARGE THE QUOTRON OPERATION IS THE TRANSACTION ISN'T EXPECTED TO HAVE A MATERIAL IMPACT EITHER ON ADP'S EARNINGS OR ITS DEBT FRED D ANDERSON CHIEF FINANCIAL OFFICER SAID ADP WHICH HAD NEARLY 800 MILLION IN CASH AS OF ITS FIRST QUARTER ENDED IN SEPTEMBER WILL PAY CASH FOR THE UNITS HE SAID 9301050069 930105 MARKETSCAN DETERGENT INDUSTRY SPINS INTO NEW CYCLE BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL AS EVERY SKEPTICAL SHOPPER KNOWS LESS IS HARDLY EVER MORE EXCEPT IT SEEMS FOR MAKERS OF A NEW GENERATION OF SUPERSUDSING LAUNDRY DETERGENT IN THE PAST TWO YEARS US CONSUMERS HAVE FUNDAMENTALLY CHANGED THE WAY THEY GO ABOUT PERFORMING ONE OF LIFE'S PERPETUAL CHORES WASHING THEIR CLOTHES FOR FOUR DECADES PEOPLE SPILLED POWDERY SOAP OUT OF GIANTSIZE BOXES INTO THEIR WASHING MACHINES IN RECENT YEARS MANY CONSUMERS SWITCHED TO LIQUID DETERGENTS BUT NOW MOST ARE FLIPPING UP THE TOP OF A SMALL CARDBOARD CUBE AND MEASURING OUT A PRUDENT DOSE OF CONCENTRATED GRANULES WITH A RECYCLABLE SCOOP THAT MASSIVE EXERCISE IN BEHAVIOR MODIFICATION IS THE RESULT OF A CONCERTED EFFORT BY SOAP COMPANIES AND RETAILERS TO SELL CONSUMERS ON A FAIRLY DIFFICULT IDEA THE ULTRACONCENTRATE THE PITCHES BESIDES STRESSING CLEANING POWER HAVE PLAYED ON CONSUMERS' RISING CONCERNS ABOUT PACKAGING WASTE AND THE ENVIRONMENT FOR EXAMPLE WISK POWER SCOOP AN ULTRA ENTRY FROM UNILEVER GROUP'S LEVER BROS COMES IN A BOLD BLUE BOX LISTING FACTS ABOUT THIS PACKAGE INCLUDING CLAIMS THAT IT USES LESS MATERIAL IS MADE OF RECYCLED PAPER AND HAS A SCOOP CODED FOR RECYCLING HUNDREDS OF MILLIONS OF DOLLARS ARE DRAINING OUT OF REGULAR DETERGENTS INTO THE NEWFANGLED CONCENTRATES FOR THE 13WEEK PERIOD ENDED NOV 22 POWDERED SUPERCONCENTRATES GREW TO 55 OF ALL DETERGENT SALES UP FROM ABOUT 35 JUST A YEAR AGO ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE ONLY 69 OF DETERGENT SALES NOW ARE OF THE OLDFASHIONED REGULARSTRENGTH POWDERS LIQUID SOAPS MAKE UP THE REST OF THE CATEGORY ALTHOUGH THE SOAP MAKERS DON'T DIRECTLY SAY SO THE TREND TOWARD ULTRAS IS PROFITABLE FOR THEM FOR THE FACT IS THAT MAKERS HAVE USED THE SWITCH TO ULTRAS TO QUIETLY RAISE THE COST PER WASH AT A TIME WHEN STANDARDS OF QUANTITY AND MEASUREMENT ARE DECIDEDLY FUZZY THE ULTRAS' VARYING PACKAGE SIZES MAKE PRICE SHOPPING NEARLY IMPOSSIBLE SAYS MICHAEL SILVERSTEIN A VICE PRESIDENT WITH THE CHICAGO OFFICE OF THE BOSTON CONSULTING GROUP EACH MAKER HAS ITS OWN SCOOP SIZE AND MEASURES QUANTITIES IN LOADS YET SUPERMARKET SHELVES BREAK PRICES DOWN IN OUNCES CONSUMERS LITERALLY NEED A CALCULATOR MR SILVERSTEIN SAYS TAKE TIDE THE COST PER WASH OF TIDE POWDER WITH BLEACH INCREASED 37 WHEN PROCTER & GAMBLE CO TURNED TO THE ULTRACONCENTRATED FORMULA ACCORDING TO ANDREW SHORE AN INDUSTRY ANALYST AT PAINEWEBBER ONE WASH LOAD USING A FAMILYSIZE BOX OF CONVENTIONAL TIDE WITH BLEACH COSTS ON AVERAGE 183 CENTS HE FOUND THAT SAME LOAD FROM A FAMILYSIZE BOX OF ULTRA TIDE WITH BLEACH ACCORDING TO MR SHORE IS 25 CENTS CONTRIBUTING TO THAT INCREASE WAS AN AVERAGE PRICE INCREASE OF ABOUT 9 WHICH P&G TOOK TO OFFSET ITS INVESTMENT IN NEW MANUFACTURING FOR THE SUPERCONCENTRATES ESTIMATES BONITA AUSTIN HOUSEHOLDPRODUCTS ANALYST AT SHEARSON LEHMAN BROS THAT LIKELY MAKES FOR A TIDY PROFIT FOR P&G WHICH WAS FIRST TO INTRODUCE THE NEW GENERATION OF ULTRAS IN POWDERED FORM ITS FLAGSHIP ULTRA TIDE IS THE NO 1 BRAND BY FAR WITH A 21 SHARE ULTRA TIDE SALES GREW 35 TO 205 MILLION FOR THE 13 WEEKS ENDED NOV 22 ACCORDING TO INFOSCAN NUMBERS SALES OF REGULAR TIDE MEANWHILE FELL 81 P&G ALSO MAKES THE NO 2 BRAND IN THE BUSINESS ULTRA CHEER AND THAT PRODUCT'S SALES ROSE 36 IN THE 13WEEK PERIOD TO 665 MILLION SALES OF REGULAR CHEER FELL 941 LEVER BROS WHICH LAST APRIL INTRODUCED WISK POWER SCOOP POWDER SAW SALES OF THE ULTRA RISE 41 LEVER'S ULTRA SURF SPIKED UP 515 AS THE NEW VERSION ROLLED OUT NATIONALLY WHILE REGULAR SURF FELL 90 SALES OF ARM & HAMMER ULTRA FRESH SIMILARLY GREW 254 WHILE THE REGULAR FORMULA FELL 95 THE TREND IS KEEPING THE SPARKLE IN AN OTHERWISE LACKLUSTER DETERGENT BUSINESS A NEARLY 4 BILLION MARKET DETERGENT SALES HAVE BEEN FLAT IN RECENT YEARS COMPARED WITH A YEAR AGO SALES IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS FELL 12 IN DOLLAR VOLUME AND DROPPED 38 IN UNITS IN THE RECENT 13WEEK PERIOD BEHIND THE FIGURES ARE CHANGES IN THE WAY AMERICANS CLEAN THEIR CLOTHES IN 1970 THE TYPICAL HOUSEHOLD DID ALMOST 10 WASH LOADS OF DIRTY CLOTHES EVERY WEEK TWENTY YEARS LATER THE AVERAGE WEEKLY LAUNDRY TALLY HAD DECLINED TO JUST SIX LOADS ALBEIT LARGER ONES SAYS JOY SCHRAGE A CONSULTANT WHO WORKED ON THE WHIRLPOOL CORP TEAM THAT DEVELOPED THE PERMANENTPRESS WASHINGMACHINE CYCLE IN THE LATE 1960S MS SCHRAGE HAS A LAUNDRY LIST OF REASONS WOMEN SURGED OUT OF THE HOME AND INTO THE WORK FORCE SMALLER FAMILIES AND MORE SINGLEPERSON HOUSEHOLDS CAN WAIT LONGER BETWEEN TRIPS TO THE LAUNDROMAT MORE CLOTHES NOWADAYS NEED DRY CLEANING WHEN THERE WERE FULLTIME HOMEMAKERS THEY WOULD WASH THEIR HUSBANDS' DRESS SHIRTS MS SCHRAGE ADDS NOW MEN WHO WORK IN OFFICES TAKE THEIR SHIRTS TO THE LAUNDRY NO ONE IN THE FAMILY HAS TIME TO WASH THEM THE FACT THAT WE DO THE WASH LESS HOWEVER IS AN ADVANTAGE FOR ULTRACONCENTRATE MARKETERS EACH LOAD IS 20 LARGER THAN THE TYPICAL LOAD OF 20 YEARS AGO PROMPTING MANY USERS OF ULTRACONCENTRATES TO POUR A HEFTY DOSE INTO THE WASH EVEN THOUGH A TINY SCOOP WOULD DO WE ARE JUST SUCH CREATURES OF HABIT MS SCHRAGE SAYS A SLEEK LITTLE SCOOP JUST DOESN'T LOOK LIKE ENOUGH LOTS OF FOLKS EXPERTS ALSO POINT OUT DON'T READ THE DIRECTIONS ULTRAS' SMALLER SIZE STILL GIVE CONSUMERS THE SAME NUMBER OF WASHES AS THE CONVENTIONAL POWDERS DID THEY JUST TAKE UP LESS SPACE THAT MEANS MANUFACTURERS CAN WRING HIGHER PROFITS OUT OF A SLUGGISH CATEGORY AS THEY LOWER THEIR COSTS FOR PACKAGING AND SHIPPING THE IDEA OF A CONCENTRATE ISN'T NEW COLGATEPALMOLIVE CO CREDITS ITSELF WITH INTRODUCING THE FIRST ONE FRESH START 16 YEARS AGO BUT FRESH START FALTERED NEVER GROWING BEYOND A NICHE OF APARTMENT DWELLERS ROSY ECONOMICS ENSURED SUPERMARKETS' SUPPORT FOR THE CURRENT GENERATION OF SUPERSUDS RETAILERS BOUGHT INTO THE IDEA BECAUSE THE SMALLER BOXES TOOK UP LESS SHELF SPACE ALLOWING THEM TO INCREASE THE SALES PER FOOT IN THEIR DETERGENT SECTIONS SAYS JULES ROSE CHAIRMAN OF SLOANS SUPERMARKETS INC NEW YORK SOAP PRODUCERS WERE PLEASED TO BE ABLE TO SHIP IN THAT MUCH MORE PRODUCT TO FILL UP THE SHELVES LO AND BEHOLD THEY WERE RIGHT FOR ONCE MR ROSE SAYS IT'S A WINWIN SITUATION THE NEXT ULTRA FRONTIER WILL COME IN LIQUID FORM SIX WEEKS AGO P&G BEGAN THE NATIONAL INTRODUCTION OF NINE NEW LIQUID CONCENTRATES IN REFILLABLE BOTTLES THAT ARE 22 MORE CONCENTRATED THAN ORDINARY LIQUID SOAPS THEY OFFER EVEN MORE APPEALING EFFICIENCIES IN PRODUCTION AND DISTRIBUTION MR SILVERSTEIN OF THE BOSTON CONSULTING GROUP FIGURES THAT COMPARED WITH REGULAR LIQUIDS P&G'S ULTRA LIQUIDS COULD COST 60 LESS TO PACKAGE AND UP TO 70 LESS TO SHIP IN RAW MATERIALS PROCTER SAYS THE NEW ULTRAS PACKAGES USE 20 LESS PLASTIC AND THE REFILL BOTTLES 40 LESS PLASTIC THAN THE COMPARABLE ORDINARY SIZE BOTTLE OVERALL MR SILVERSTEIN FIGURES ULTRALIQUIDS COULD END UP COSTING MANUFACTURERS ABOUT 20 LESS THAN REGULAR LIQUIDS TO GET TO STORE SHELVES PROCTER DECLINES TO PROVIDE SPECIFIC FIGURES BUT SAYS ITS SAVINGS IN PACKAGING AND SHIPPING OF ULTRALIQUIDS WERE PASSED ALONG TO CONSUMERS INCLUDING AN ACTUAL REDUCTION IN THE PRICE OF SOME OF ITS LIQUID BRANDS P&G'S RIVALS AREN'T FAR BEHIND CHURCH & DWIGHT CO HAS BEEN TESTING ARM & HAMMER POWER FRESH LIQUID IN DETROIT AND DENVER SINCE AUGUST AND WHILE UNILEVER REFUSES TO COMMENT ON WHETHER IT HAS SUCH PLANS AN ULTRALIQUID WISK WOULD SEEM TO BE INEVITABLE IN THE PAST TWO YEARS SUPERCONCENTRATED SOAP POWDERS INCLUDING ULTRA TIDE AND WISK POWER SCOOP HAVE FUNDAMENTALLY CHANGED THE WAY CONSUMERS WASH THEIR CLOTHES 9301050068 930105 HEALTHCARE COSTS TO RISE 121 IN '93 REPORT SAYS WASHINGTON AP HEALTHCARE SPENDING WILL JUMP 121 TO NEARLY 1 TRILLION THIS YEAR AND WILL CONTINUE TO CLIMB AT A DOUBLEDIGIT PACE UNLESS THE NATION'S MEDICAL SYSTEM IS OVERHAULED THE COMMERCE DEPARTMENT PREDICTS IN A CHAPTER OF THE 1993 US INDUSTRIAL OUTLOOK THE DEPARTMENT SAID HEALTHCARE SPENDING ROSE 115 TO 8385 BILLION IN 1992 FROM A YEAR EARLIER IT WILL RISE TO 9399 BILLION IN 1993 IT SAID IN 1992 ACCORDING TO THE COMMERCE DEPARTMENT HEALTH CARE MADE UP 14 OF THE NATION'S GROSS DOMESTIC PRODUCT AN ALLTIME RECORD THAT AMOUNTS TO 3160 FOR EVERY MAN WOMAN AND CHILD THAT AMOUNT IS SUBSTANTIALLY HIGHER THAN WHAT IS FOUND IN OTHER LEADING INDUSTRIALIZED COUNTRIES THE REPORT NOTED MOREOVER IT SAID EXPENDITURES ARE PROJECTED TO RISE BY ABOUT 12 TO 15 A YEAR DURING THE NEXT FIVE YEARS UNLESS SIGNIFICANT CHANGES IN THE HEALTHCARE DELIVERY SYSTEM OCCUR THE REPORT SAID THE HEALTHCARE GROWTH RATE CONTINUES TO GREATLY EXCEED THAT OF THE GENERAL ECONOMY 9301050067 930105 BUSINESS BRIEF KIRSCHNER MEDICAL CORP PLANS TO SELL SPANISH UNIT TO RESULT IN QUARTERLY LOSS KIRSCHNER MEDICAL CORP SAID IT SIGNED A LETTER OF INTENT TO SELL ITS SPANISH SUBSIDIARY FOR 81 MILLION WHICH WOULD REPRESENT AN UNSPECIFIED LOSS FOR THE COMPANY A GROUP OF INVESTORS HEADED BY GRANVILLE IBERIA SA INTENDS TO BUY INDUSTRIAS QUIRURGICAS DE LEVANTE SA WHICH KIRSCHNER CARRIED AT 132 MILLION ON ITS BOOKS THE COMPANY SAID A PROVISION FOR THE LOSS WOULD BE RECORDED IN THE FOURTH QUARTER OF 1992 KIRSCHNER A TIMONIUM MD MAKER AND MARKETER OF MEDICAL PRODUCTS PURCHASED THE SPANISH COMPANY IN 1988 FOR AN UNDISCLOSED AMOUNT IN THE FOURTH QUARTER OF 1991 KIRSCHNER REPORTED NET INCOME OF 17 MILLION OR 65 CENTS A SHARE ON REVENUE OF 191 MILLION LAST YEAR'S FIGURES INCLUDE AN EXTRAORDINARY GAIN OF ABOUT 30 CENTS A SHARE FROM THE SALE OF A PLANT IN MARYLAND 9301050066 930105 BUSINESS BRIEF UNITED MEDICAL CORP BOARD CLEARS PLAN TO TAKE FIRM PRIVATE STOCK SOARS UNITED MEDICAL CORP'S SHARES SHOT UP 45 ON NEWS THAT A PLAN BY ITS TWO FOUNDERS TO TAKE THE HADDONFIELD NJ COMPANY PRIVATE HAD BEEN APPROVED BY THE BOARD CHAIRMAN JOHN AGLIALORO AND PRESIDENT JOAN CARTER WHO TOGETHER OWN ABOUT 52 OF THE SHARES PLAN TO ACQUIRE THE REST OF THEM AT 950 EACH THE COMPANY HAS ABOUT 26 MILLION SHARES OUTSTANDING A SPOKESWOMAN SAID ADDING THAT ABOUT 25 OF THE STOCK IS HELD BY INSTITUTIONS UNITED MEDICAL'S SHARES CLOSED AT 925 UP 2875 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THE COMPANY PROVIDES MEDICAL SERVICES INCLUDING ELECTROCARDIOGRAM AND PACEMAKER MONITORING WE HAVE FIVE OPERATING COMPANIES AND NONE EXPERIENCED RAPID GROWTH THE SPOKESWOMAN SAID I GUESS THE COMPANY DIDN'T MEET ANALYSTS' EXPECTATIONS ALSO THE STOCK HAS BEEN TRADING UNDER BOOK VALUE UNITED MEDICAL SAID THERE IS NO FINANCIAL CONTINGENCY FOR THE DEAL HOWEVER CLOSING OF THE TRANSACTION IS SUBJECT TO OTHER CONDITIONS INCLUDING APPROVAL BY THE COMPANY'S PUBLIC SHAREHOLDERS AND THE CONSENT OF ITS EXISTING LENDERS 9301050065 930105 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS DEC 23 1992 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9301050064 930105 INTERNATIONAL BRIEF SPARBANKEN SVERIGE AB SWEDISH CONCERN COMPLETES MERGER OF 11 REGIONAL BANKS SWEDEN'S SPARBANKEN SVERIGE AB ALSO CALLED SWEDBANK COMPLETED ITS MERGER WITH 11 REGIONAL SAVINGS BANKS TO BECOME ONE OF THE LARGEST BANKS IN THE NORDIC REGION SWEDBANK'S TOTAL ASSETS CURRENTLY AMOUNT TO 530 BILLION KRONOR 749 BILLION THIS REPRESENTS APPROXIMATELY 80 OF THE FORMER SWEDISH SAVINGS BANK SECTOR ACCORDING TO THE BANK THROUGH A FARREACHING AGREEMENT WITH ALL THE REMAINING SAVINGS BANKS SWEDBANK REPRESENTS THE ENTIRE FORMER SAVINGS BANK SECTOR FROM A MARKET POINT OF VIEW SWEDBANK HAS 750 DOMESTIC BRANCHES AND AN ADDITIONAL 380 BRANCHES IN SWEDEN THROUGH AFFILIATED SAVINGS BANKS IT SAID THE FORMAL MERGER OF SWEDBANK AND THE 11 REGIONAL BANKS TOOK PLACE DEC 31 WHEN THE REGIONAL BANKS' ASSETS AND LIABILITIES WERE TRANSFERRED TO SWEDBANK AND THE 11 BANKS WERE DISSOLVED ON JAN 1 SPARBANKERNAS BANK THE FORMER CENTRAL BANK FOR SWEDISH SAVINGS BANKS CHANGED ITS NAME TO SPARBANKEN SVERIGE AB 9301050063 930105 BUSINESS BRIEF GOODYEAR TIRE & RUBBER CO SETTLEMENT OF 91 MILLION RESOLVES A LAWSUIT BY US GOODYEAR TIRE & RUBBER CO WILL PAY 91 MILLION TO SETTLE ALLEGATIONS THAT IT OVERCHARGED THE DEFENSE DEPARTMENT ON 10 CONTRACTS BETWEEN 1982 AND 1986 THE FIVEYEAROLD FEDERAL LAWSUIT CHARGED GOODYEAR AEROSPACE WITH OVERBILLING THE GOVERNMENT FOR 30 MILLION ON CONTRACTS TOTALING MORE THAN 200 MILLION TO MAKE BALLOONTYPE DEVICES TO DECELERATE AND GUIDE THE FLIGHT OF BOMBS DROPPED FROM LOWFLYING PLANES GOODYEAR AEROSPACE A FORMER GOODYEAR TIRE SUBSIDIARY IS NOW A UNIT OF LORAL CORP KNOWN AS LORAL SYSTEMS GROUP THE CASE WAS SIGNIFICANT BECAUSE THE GOVERNMENT TOOK OVER FROM A PRIVATE PARTY LITIGATION ALLEGING FRAUD AND OVERBILLING ON GOVERNMENT CONTRACTS THE ACTION WAS FIRST FILED IN 1987 BY IRVIN INDUSTRIES INC A FORMER GOODYEAR SUBCONTRACTOR IN SUCH FALSE CLAIMS SUITS THE PRIVATE PARTY WHO BRINGS THE OVERBILLING TO THE GOVERNMENT'S ATTENTION IS ENTITLED TO A 15 TO 25 CUT OF WHAT THE GOVERNMENT RECOVERS THE SETTLEMENT RESOLVES ALL ISSUES RELATING TO THE FALSE CLAIMS CASES AGAINST GOODYEAR SAID BETH KASWAN AN ASSISTANT US ATTORNEY 9301050062 930105 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 CIGNA CORP 200 MILLION TWOPART ISSUE OF SECURITIES WAS PRICED THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE FIRST PART CONSISTING OF 100 MILLION OF 740 NOTES DUE JAN 15 2003 WAS PRICED AT 99372 TO YIELD 749 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 875 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF 830 DEBENTURES DUE JAN 15 2023 WAS PRICED AT 99233 TO YIELD 837 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 102 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND BOTH PARTS ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP DEERE CAPITAL CORP 150 MILLION ISSUE OF 5 NOTES DUE JAN 15 1995 WAS PRICED AT 99857 TO YIELD 5075 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 60 BASIS POINTS ABOVE THE TREASURY TWOYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DEERE CAPITAL CORP IS A UNIT OF DEERE & CO DOW CAPITAL BV 150 MILLION ISSUE OF 7125 NOTES DUE JAN 15 2003 WAS PRICED AT 99399 TO YIELD 721 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DOW CAPITAL IS A UNIT OF DOW CHEMICAL CO RR DONNELLEY & SONS 110 MILLION ISSUE OF 7 NOTES DUE JAN 1 2003 WAS PRICED AT 99643 TO YIELD 705 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 47 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CREDIT LOCAL DE FRANCE FRANCE 150 MILLION OF SENIOR COLLARED FLOATING RATE NOTES DUE FEB 2 2003 AT AN ISSUE AND REOFFERED PRICE OF 9950 VIA GOLDMAN SACHS INTERNATIONAL INTEREST RATE WILL FLOAT AT A MARGIN OF 025 POINT BELOW THE SIXMONTH LONDON INTERBANK OFFERED RATE THERE IS A MINIMUM COUPON OF 5125 AND A MAXIMUM COUPON OF 825 FEES 050 LANDESBANK HESSENTHURINGEN GIROZENTRALE GERMANY 100 MILLION OF SUBORDINATED FLOATING RATE NOTES DUE JAN 28 2003 AT AN ISSUE AND REOFFERED PRICE OF 9950 VIA KIDDER PEABODY SECURITIES LTD INTEREST RATE FLOATS AT A MARGIN OF 125 POINT BELOW THE SIXMONTH LIBOR MINIMUM COUPON OF 5 AND A MAXIMUM COUPON OF 925 FEES 050 AUSTRALIAN INDUSTRY DEVELOPMENT CORP AUSTRALIAN 100 MILLION AUSTRALIAN DOLLARS OF 925 EUROBONDS DUE FEB 17 2003 AT AN ISSUE PRICE OF 10065 TO YIELD 948 AFTER DISCOUNTING FEES VIA HAMBROS BANK LTD GUARANTEED BY THE COMMONWEALTH OF AUSTRALIA FEES 2125 9301050061 930105 BUSINESS BRIEF AMDURA CORP FIRM'S RESTRUCTURING ALLOWS BANK LENDERS TO RAISE STAKE AMDURA CORP TULSA OKLA SAID IT RESTRUCTURED 50 MILLION OF DEBT IN A TRANSACTION THAT WILL ALLOW BANK LENDERS TO INCREASE THEIR STAKE IN THE COMPANY TO 93 FROM 86 THE COMPANY SAID THE DEBT WAS CONVERTED INTO A 101 MILLION FIVEYEAR FLOATINGRATE LOAN A 15 MILLION NINEYEAR FIXEDRATE LOAN AND 12 MILLION NEWLY ISSUED SHARES OF CONVERTIBLE PREFERRED STOCK SUBJECT TO SHAREHOLDER APPROVAL THE COMPANY SAID LENDERS CAN CONVERT THE STOCK TO 12 MILLION COMMON SHARES WHICH WOULD INCREASE THE LENDERS' OWNERSHIP OF THE COMPANY TO 93 THE GROUP INCLUDES 13 LENDERS LED BY CONTINENTAL BANK CHICAGO A UNIT OF CONTINENTAL BANK CORP THE DEBT WAS ISSUED IN OCTOBER 1991 IN CONNECTION WITH AMDURA'S REORGANIZATION AND EMERGENCE FROM BANKRUPTCY COURT PROTECTION THE COMPANY A MAKER OF HEAVYLIFTING AND WASTEMANAGEMENT EQUIPMENT MADE TWO QUARTERLY INTEREST PAYMENTS BEFORE FALLING INTO DEFAULT ON THE NOTES 9301050060 930105 BUSINESS BRIEF NATIONAL GYPSUM CO COURT RULING SETTLES DISPUTE OVER REORGANIZATION PLANS NATIONAL GYPSUM CO SAID A BANKRUPTCY COURT PLACED THE COMPANY'S VALUE AT 350 MILLION SETTLING A KEY ISSUE IN A DISPUTE OVER ITS REORGANIZATION A COMPANY SPOKESMAN SAID THE COURT'S DETERMINATION OF THE VALUE IS A BIG STEP FORWARD IN THE WALLBOARD MANUFACTURER'S EFFORT TO REORGANIZE LAST MONTH THE US BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS HAD RULED THAT A RIVAL PLAN PROPOSED BY A COMMITTEE OF BOND AND CREDIT HOLDERS WHICH PLACED THE COMPANY'S VALUE AT 630 MILLION COULDN'T BE CONFIRMED THE COMMITTEE HAD CHALLENGED THE COMPANY'S LOWERVALUED PLAN SAYING IT OVERPAID SENIOR CREDITORS AND UNDERPAID JUNIOR CREDITORS NATIONAL GYPSUM HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION SINCE 1990 AND EXPECTS THE COURT TO RULE ON ITS REORGANIZATION PLAN AFTER CONFIRMATION HEARINGS RESUME LATER THIS MONTH THE COMPANY SPOKESMAN SAID THAT PHASE OF THE HEARINGS WILL FOCUS ON ASBESTOSRELATED CLAIMS AGAINST THE COMPANY 9301050059 930105 BUSINESS BRIEF CLEARLY CANADIAN BEVERAGE CORP ROYALTY DISTRIBUTION PACT WITH CAMFREY TO TERMINATE CLEARLY CANADIAN BEVERAGE CORP SAID IT WILL PAY ABOUT 20 MILLION CANADIAN DOLLARS US157 MILLION TO TERMINATE AN AGREEMENT WITH CAMFREY RESOURCES LTD WHICH COLLECTS A ROYALTY FROM THE US SALES OF CLEARLY CANADIAN'S PRODUCTS THE SETTLEMENT ENDS A LONG RUNNING DISPUTE BETWEEN THE TWO VANCOUVER BRITISH COLUMBIA COMPANIES ABOUT THE US ROYALTY AND DISTRIBUTION AGREEMENT WHICH WAS UPHELD IN ARBITRATION LAST MONTH STUART ROSS A CLEARLY CANADIAN DIRECTOR SAID THE COMPANY BELIEVES NOW IS A BETTER TIME TO BUY OUT CAMFREY'S ROYALTY INTEREST BEFORE SALES EXPAND FURTHER CLEARLY CANADIAN'S SALES ROSE ABOUT 45 IN 1992 TO AN ESTIMATED C185 MILLION AND THE COMPANY EXPECTS A FURTHER 25 SALES INCREASE THIS YEAR MR ROSS SAID A CAMFREY SPOKESMAN ESTIMATED THAT THE AMOUNT TO BE PAID BY CLEARLY CANADIAN WHICH IS BASED ON RECENT REVENUE FIGURES WILL BE CLOSER TO C24 MILLION 9301050058 930105 BUSINESS BRIEF NORTHEAST BANCORP SHAREHOLDER SUES COMPANY ALLEGING DISCLOSURE LAPSE A SHAREHOLDER SUED NORTHEAST BANCORP YESTERDAY ALLEGING THAT THE STAMFORD CONN BANKING COMPANY FAILED TO DISCLOSE IT HADN'T FULFILLED CERTAIN REGULATORY REQUIREMENTS THE COMPLAINT ALLEGES THAT AS A RESULT THE PRICE OF NORTHEAST'S COMMON STOCK WAS INFLATED ARTIFICIALLY THE SHAREHOLDER WILLIAM STRIZEVER IS SEEKING CLASSACTION STATUS IN CONNECTICUT'S FEDERAL DISTRICT COURT ON BEHALF OF PURCHASERS OF NORTHEAST STOCK FROM AUG 16 THROUGH DEC 28 1992 ON DEC 28 NORTHEAST ANNOUNCED IT AGREED TO BE ACQUIRED BY FIRST FIDELITY BANCORP LAWRENCEVILLE NJ IN AN EXCHANGE OF STOCK VALUED AT 4 A SHARE THE COMPLAINT ALLEGES THAT NORTHEAST AND THREE OF ITS PRINCIPAL OFFICERS SOUGHT A MERGER PARTNER FOR THE COMPANY TO FORESTALL OR UNDO A LIKELY ISSUANCE OF A REGULATORY CEASEANDDESIST ORDER THE COMPANY DISCLOSED ON DEC 28 THAT IT EXPECTED TO BECOME SUBJECT TO A CEASEANDDESIST ORDER THIS MONTH A NORTHEAST SPOKESMAN DECLINED TO COMMENT CITING COMPANY POLICY AGAINST COMMENTING ON PENDING LITIGATION 9301050057 930105 WHO'S NEWS BLOCKBUSTER'S BACZKO QUITS TWO POSTS AMID REORGANIZATION AND EXPANSION BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL BLOCKBUSTER ENTERTAINMENT CORP SAID JOSEPH R BACZKO ITS PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED AMID A CORPORATE REORGANIZATION MR BACZKO 47 YEARS OLD JOINED THE ATLANTA VIDEORENTAL CHAIN ONLY TWO YEARS AGO FROM TOYS R US INC WHERE HE HAD SERVED AS PRESIDENT OF THE INTERNATIONAL DIVISION BROUGHT IN TO IMPROVE STORE MERCHANDISING AS WELL AS EARNINGS MR BACZKO HELPED TURN BLOCKBUSTER INTO A WELLOILED MACHINE SAID GARY M JACOBSON AT KIDDER PEABODY & CO THE COMPANY'S EARNINGS ROSE 62 IN THE FIRST QUARTER OF 1992 AND WERE UP 40 AND 50 IN THE SECOND AND THIRD QUARTERS RESPECTIVELY BUT BLOCKBUSTER'S CHAIRMAN H WAYNE HUIZENGA SAID IN AN INTERVIEW THAT WHILE MR BACZKO WAS A VERY GOOD RETAILER THE COMPANY IS EXPANDING INTO AREAS THAT AREN'T LIMITED TO RETAILING SAID MR HUIZENGA WE MUTUALLY CAME TO THE CONCLUSION THAT JOE WOULD RATHER GO OFF AND DO SOMETHING MORE RETAILORIENTED IN A SEPARATE INTERVIEW MR BACZKO WHO IS ALSO STEPPING DOWN FROM HIS POSITION AS DIRECTOR SAID HE PLANS TO START HIS OWN RETAIL VENTURE WITH BLOCKBUSTER AS A BACKER HE DECLINED TO GIVE SPECIFICS EXCEPT TO SAY THE BUSINESS WOULD BE A SPECIALTY MEGASTORE SELLING HARD GOODS IN THE LEISURE AREA BLOCKBUSTER SAID STEVEN R BERRARD 38 VICE CHAIRMAN WILL ASSUME MR BACZKO'S RESPONSIBILITIES UNTIL A PERMANENT REPLACEMENT IS FOUND MR HUIZENGA NOTED THAT MR BERRARD IS BEING CONSIDERED TO SUCCEED MR BACZKO BOTH MR HUIZENGA AND MR BACZKO DESCRIBED THE LATTER'S DEPARTURE AS AMICABLE BUT SOME INDUSTRY ANALYSTS SPECULATED THAT UNDER THE COMPANY'S REORGANIZATION MR BACZKO MIGHT HAVE BEEN ASKED TO OVERSEE A SMALLER PIECE OF THE CORPORATE PIE SUCH AS VIDEO OPERATIONS ALONE MR BACZKO PROBABLY DIDN'T WANT TO SETTLE FOR BEING NO 2 SAID R JERRY FALKNER A RESEARCH CONSULTANT WITH SOUTHEAST RESEARCH PARTNERS IN BOCA RATON FLA MR BACZKO HOWEVER DENIED THAT THERE WAS ANY EFFORT TO LESSEN HIS RESPONSIBILITIES IT ISN'T A QUESTION OF ROOM OR NO ROOM IN THE REORGANIZATION HE SAID BLOCKBUSTER IS EVOLVING INTO A FULL ENTERTAINMENT COMPANY AND I FEEL MUCH MORE COMFORTABLE IN STAYING IN THE RETAIL AREA IN THE PAST YEAR BLOCKBUSTER BASED IN FORT LAUDERDALE FLA HAS BEEN EXPANDING BEYOND ITS CORE VIDEORENTAL BUSINESS IN FEBRUARY THE COMPANY COMPLETED THE ACQUISITION OF CITYVISION PLC BRITAIN'S LARGEST VIDEO RETAILER IN OCTOBER BLOCKBUSTER AGREED TO ACQUIRE TWO RECORDSTORE CHAINS AND IN NOVEMBER BLOCKBUSTER SAID IT PLANS TO DEVELOP A CHAIN OF MEGASTORES IN THE US WITH VIRGIN RETAIL GROUP OF LONDON AND TO OPERATE SIMILAR STORES IN EUROPE AND AUSTRALIA PARTLY AS A RESULT OF THOSE MOVES BLOCKBUSTER SAID IT WILL CREATE SIX SEPARATE ENTERTAINMENT AND RETAILING DIVISIONS UNDER ONE HOLDING COMPANY DOMESTIC AND INTERNATIONAL HOME VIDEO DOMESTIC AND INTERNATIONAL MUSIC RETAILING NEW TECHNOLOGY VENTURES AND OTHER ENTERTAINMENT VENUES EACH DIVISION WILL HAVE ITS OWN PRESIDENT AND EACH OF THOSE INDIVIDUALS WILL REPORT TO MR BACZKO'S SUCCESSOR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BLOCKBUSTER SHARES FELL 50 CENTS TO 1825 9301050056 930105 COMPELLED INTO CLASS ACTION BY BRADLEY A SMITH I WOULD LIKE TO INTRODUCE YOU TO W PITTS CARR MY ATTORNEY I WOULD LIKE TO BUT I CAN'T YOU SEE I HAVE NEVER MET MR CARR I HAVE NEVER SPOKEN TO HIM ON THE PHONE I HAVE NEVER WRITTEN TO HIM NOR HAS HE EVER WRITTEN TO ME I HAVE NEVER ASKED MR CARR TO SERVE AS MY ATTORNEY AND HE HAS NEVER ASKED ME IF I WANTED HIM TO DO SO SO HOW IS IT THAT MR CARR IS MY ATTORNEY WELL AWHILE BACK MR CARR HAS NEVER TOLD ME JUST WHEN A HANDFUL OF THE MILLIONS OF PEOPLE WHO HAVE FLOWN ON AIRLINES SINCE 1988 DECIDED THAT THE AIRLINES HAD ENGAGED IN ILLEGAL PRICING AND CHARGED TOO MUCH FOR THEIR TICKETS I DO NOT KNOW MUCH ABOUT THE MERITS OF THIS LITIGATION BUT IF THE AIRLINES DID THESE THINGS IT DOESN'T SEEM TO HAVE WORKED OUT TOO WELL WHAT WITH ALL THE BANKRUPTCIES AND FARE WARS IN THE INDUSTRY ANYWAY MR CARR FILED A CLASSACTION LAWSUIT THE CLASS INCLUDED ME AND LITERALLY MILLIONS OF PEOPLE WHO FLEW ON MAJOR AIRLINES BETWEEN 1988 AND MID1992 FOR THOSE UNTUTORED IN THE AMERICAN LEGAL SYSTEM A CLASSACTION LAWSUIT IS A METHOD BY WHICH A VERY LARGE NUMBER OF PEOPLE WHO HAVE EXTREMELY SIMILAR OR IDENTICAL CLAIMS AGAINST THE SAME DEFENDANT CAN SUE IN A SINGLE LAWSUIT ORIGINALLY CLASS ACTIONS WERE INTENDED TO CONSERVE JUDICIAL RESOURCES BY CONSOLIDATING LARGE NUMBERS OF CLAIMS INTO A SINGLE LAWSUIT AND TO AVOID THE EMBARRASSMENT OF DIFFERENT JURIES REACHING DIFFERENT VERDICTS FOR DIFFERENT PLAINTIFFS ON THE BASIS OF IDENTICAL FACTS AT FIRST CLASS ACTIONS WERE FEW HOWEVER AS PART OF THE JUDICIAL REFORMS IN THE 1960S RULES WERE CHANGED MAKING IT MUCH EASIER TO FILE AND MAINTAIN A CLASSACTION LAWSUIT THESE REFORMS WERE BASED LARGELY ON THE PREMISE THAT IT WAS GOOD TO ENCOURAGE PEOPLE TO SUE OVER SMALL AMOUNTS ANYWAY SOMETIME IN 1991 OR MAYBE EARLIER W PITTS CARR WENT INTO FEDERAL DISTRICT COURT IN ATLANTA AND CLAIMING TO REPRESENT ME AMONG OTHERS SUED MOST OF AMERICA'S MAJOR AIRLINES AS AN ATTORNEY I AM FAMILIAR WITH CLASS ACTIONS AND HAVE EVEN WORKED ON CLASSACTION LITIGATION HOWEVER THIS WAS THE FIRST TIME I HAD EVER BEEN NAMED A MEMBER OF A CLASS WHEN IN LATE AUGUST OF 1992 I FINALLY RECEIVED NOTICE OF THE SUIT I GOT ANGRY I DON'T WANT TO SUE THE AIRLINES I THINK THE PRICE I PAID FOR MY TICKETS WAS A FAIR PRICE LOWER IN FACT THAN IN PREVIOUS YEARS AND I CAN'T SEE HOW REQUIRING THE AIRLINES TO COUGH UP MILLIONS IN DEFENSE AND SETTLEMENT COSTS IS GOING TO DO MUCH TO IMPROVE AIR TRAVEL PREVENT INDUSTRY BANKRUPTCIES OR LOWER FARES FURTHERMORE THE COURT WASN'T NOTIFYING ME THAT THE SUIT HAD BEGUN IT WAS NOTIFYING ME THAT THE SUIT WAS FOR ALL INTENTS AND PURPOSES OVER IN JULY 1992 MR PITTS REACHED A SETTLEMENT WITH THE AIRLINES BY WHICH THE AIRLINES WOULD SET ASIDE 408 MILLION IN FLIGHT CERTIFICATES AND 50 MILLION IN CASH TO SETTLE THE SUIT IT GNAWED AT ME THAT SOMEONE I DON'T KNOW HAD FOR TWO YEARS BEEN CLAIMING TO REPRESENT ME IN ORDER TO SUE SOMEONE I DIDN'T WANT TO SUE AND NO ONE HAD EVER TOLD ME I WONDERED BRIEFLY IF I COULD SUE MR CARR FOR INVASION OF PRIVACY BUT I REALIZED I WOULDN'T GET FAR THERE ARE STILL A FEW RESTRICTIONS LEFT ON FRIVOLOUS LITIGATION SO I CALMED DOWN AND BEGAN TO REVIEW THE COURT'S NOTICE WHAT STRUCK ME MOST WAS THE WAY THE FORM WAS SKEWED TOWARD PARTICIPATION IN THE LAWSUIT IF I DIDN'T DO ANYTHING I WOULD AUTOMATICALLY BE CONSIDERED A PART OF THE CLASS AS I HAD BEEN FOR OVER A YEAR TO GET IN ON MY SHARE OF THE LOOT ALL I HAD TO DO WAS PUT MY NAME ADDRESS AND SOCIAL SECURITY NUMBER ON A PREPAID POSTCARD SIGN IT AND DROP IT IN THE MAIL BY FEB 15 1993 HOWEVER IF I WANTED TO OPT OUT OF THE CLASS IF I WANTED TO STATE THAT W PITTS CARR WAS SPEAKING FOR ME WITHOUT MY PERMISSION THEN I HAD TO WRITE A LETTER TO SOME POST OFFICE BOX IN NEW JERSEY PAY MY OWN POSTAGE WRITE IN THE LOWER LEFT CORNER OF THE FRONT OF THE ENVELOPE THE WORDS CLASS EXCLUSION NOTICE AND GET IT POSTMARKED WITHIN TWO WEEKS I QUICKLY REALIZED THAT THERE WAS NO CHANCE THAT ENOUGH PEOPLE WOULD OPT OUT TO BRING THE SUIT TO A HALT MY DROPPING OUT WOULD MERELY MEAN MORE FOR THE REMAINING CLASS MEMBERS BESIDES THE SUIT WAS ALREADY SETTLED ON THE BASIS OF MY PARTICIPATION BY THE TIME I WAS GIVEN THE OPTION TO OPT OUT IT WAS MEANINGLESS THEN IT DAWNED ON ME THAT ALL THOSE CLASS MEMBERS WERE GOING TO GET ONLY FLIGHT CERTIFICATES WORTH 10 OR LESS OFF THE COST OF FUTURE AIRLINE TICKETS WHAT WAS GOING TO HAPPEN TO THE 50 MILLION IN CASH PUT UP BY THE AIRLINES I SCANNED THE COURT PAPERS UP TO 20 MILLION I LEARNED WAS GOING TO ADMINISTER THE SETTLEMENT AND PROVIDE NOTICE TO CLASS MEMBERS LIKE ME THE NAMED PLAINTIFFS WHO HAD ACTUALLY HAD TO RESPOND TO DISCOVERY REQUESTS WOULD GET BETWEEN 2500 AND 5000 EACH FOR THEIR TROUBLE THE WAY I FIGURED IT THIS WOULD PROBABLY LEAVE A MINIMUM OF 29 MILLION IN CASH WHO GETS THAT I FOUND THE FINE PRINT PLAINTIFFS' ATTORNEYS WILL APPLY TO THE COURT FOR AN AWARD OF REASONABLE ATTORNEYS' FEES TO BE PAID FROM THE CASH PORTION OF THE SETTLEMENTS IT SEEMS THAT I WAS DOING MY PART TO MAKE W PITTS CARR A WEALTHY MAN OF COURSE IT'S NOT LIKE THE COURT REFUSED TO GIVE ME A CHANCE TO OBJECT TO ALL THIS WHY IF I WANTED TO OBJECT TO MR CARR'S APPLICATION FOR ATTORNEYS' FEES OR TO THE SETTLEMENT ALL I HAD TO DO WAS FILE A MOTION WITH THE CLERK OF THE COURT WITHIN ABOUT TWO WEEKS OF THE DATE ON WHICH I RECEIVED MY NOTICE I THOUGHT ABOUT FILING SUCH A BRIEF MYSELF BUT I WAS NOT IN A POSITION TO DROP MY REAL CLIENTS TO PREPARE ONE I DECIDED TO STAY IN THE CLASS AND TAKE MY CERTIFICATES BUT THEY WILL NOT BE USED FOR TRAVEL RATHER I WILL KEEP THEM AS A REMINDER THAT IN OUR LEGAL SYSTEM TODAY NOT ONLY CAN YOU BE FORCED TO DEFEND A LAWSUIT YOU THINK IS MERITLESS YOU CAN BE FORCED TO HELP PROSECUTE ONE MR SMITH PRACTICES LABOR EMPLOYMENT AND IMMIGRATION LAW IN COLUMBUS OHIO 9301050055 930105 BUSINESS BRIEF GENELABS TECHNOLOGIES INC PACT REACHED WITH ABBOTT ON HEPATITIS STRAIN PRODUCTS GENELABS TECHNOLOGIES INC SAID IT ENTERED AN AGREEMENT WITH ABBOTT LABORATORIES TO DEVELOP AND MARKET PRODUCTS DESIGNED TO HELP DIAGNOSE AN OFFBEAT STRAIN OF HEPATITIS GENELABS A REDWOOD CITY CALIF BIOTECHNOLOGY COMPANY SAID THE AGREEMENT COULD RESULT IN LICENSE AND ROYALTY PAYMENTS TO IT EXCEEDING 10 MILLION THE AGREEMENT CALLS FOR ABBOTT BASED IN ABBOTT PARK ILL TO USE GENELABS TECHNOLOGY IN DEVELOPING AND COMMERCIALIZING PRODUCTS THAT HELP DIAGNOSE HEPATITIS X A LITTLEUNDERSTOOD VIRUS THAT IS BELIEVED TO FACILITATE THE TRANSMISSION OF CERTAIN TYPES OF HEPATITIS IN BLOOD TRANSFUSIONS THE PRODUCTS COULD BE USED TO SCREEN BLOOD SUPPLIES FOR THE HEPATITIS X VIRUS GENELABS STOCK ROSE ON THE NEWS CLOSING AT 8 UP 125 IN NATIONAL OVERTHECOUNTER TRADING 9301050054 930105 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 3 1/4 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 323 30 TO 44 DAYS 320 45 TO 89 DAYS 322 90 TO 119 DAYS 330 120 TO 149 DAYS 333 150 TO 179 DAYS 335 180 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 339 30 DAYS 337 60 DAYS 337 90 DAYS CERTIFICATES OF DEPOSIT 280 ONE MONTH 287 TWO MONTHS 289 THREE MONTHS 3 SIX MONTHS 325 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 348 SIX MONTHS BANKERS ACCEPTANCES 313 30 DAYS 315 60 DAYS 318 90 DAYS 325 120 DAYS 330 150 DAYS 332 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 5/16 3 3/16 ONE MONTH 3 3/8 3 1/4 TWO MONTHS 3 7/16 3 5/16 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 9/16 3 7/16 FIVE MONTHS 3 5/8 3 1/2 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 5/16 ONE MONTH 3 7/16 THREE MONTHS 3 5/8 SIX MONTHS 4 1/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 783 60 DAYS 792 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 779 60 DAYS 788 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 560 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 289 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301050053 930105 COMMODITIES PRICES OF US WHEAT INCREASE ON SPECULATION OVER THE POOR QUALITY OF HARVEST IN AUSTRALIA BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US WHEAT PRICES ROSE AMID SPECULATION THAT THE WORLD'S FOURTHBIGGEST EXPORTER AUSTRALIA WILL BE LESS OF A COMPETITOR IN 1993 BECAUSE OF A POOR QUALITY HARVEST IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE SOFT RED WINTER WHEAT CONTRACT FOR MARCH DELIVERY ROSE 75 CENTS TO SETTLE AT 36125 A BUSHEL THE HARD RED WINTER WHEAT CONTRACT FOR MARCH DELIVERY AT THE KANSAS CITY BOARD OF TRADE ROSE 475 CENTS TO SETTLE AT 352 A BUSHEL PERSISTENT RAIN IS DELAYING THE WHEAT HARVEST IN SOUTHERN AUSTRALIA AS WELL AS FUELING PLANT DISEASES AND CAUSING LOWERTHANAVERAGE QUALITY MOST GRAIN ANALYSTS HAVEN'T REDUCED THEIR PROJECTION FOR A 14 MILLION METRIC TON AUSTRALIAN WHEAT CROP BUT MUCH OF THE CROP'S QUALITY IS TOO LOW FOR HUMAN CONSUMPTION TRADERS ARE SPECULATING THAT SOME OF AUSTRALIA'S CUSTOMERS IN ASIA MIGHT BE PROMPTED TO BUY MORE OF THEIR MILLINGQUALITY WHEAT FROM THE US SAID PAUL MCAULIFFE SENIOR COMMODITY ANALYST AT CONTINENTAL GRAIN CO NEW YORK AUSTRALIA SHIPPED 82 MILLION METRIC TONS OF WHEAT OVERSEAS DURING THE 12 MONTHS ENDED JUNE 1992 A METRIC TON IS 220462 POUNDS LOWQUALITY WHEAT SELLS AT A DISCOUNT AND IS GENERALLY FED TO LIVESTOCK THE PROSPECT FOR A GLUT OF CHEAP FEEDQUALITY WHEAT ON THE WORLD MARKET IS HELPING TO KEEP A LID ON THE PRICE OF CORN WHICH IS ALSO FED TO LIVESTOCK CORN PRICES WERE ALREADY SAGGING IN THE WAKE OF A RECORD US HARVEST OF 93 BILLION BUSHELS AND RUSSIA'S SWELLING GRAIN LOAN PROBLEM THE AGRICULTURE DEPARTMENT SAID YESTERDAY THAT RUSSIA SO FAR HAS MISSED 127 MILLION IN PAYMENTS TO SIX FINANCIAL INSTITUTIONS FOR GRAIN LOANS BACKED BY US CREDIT GUARANTEES THE US GOVERNMENT IS OBLIGATED TO MAKE GOOD ON THOSE LOANS IF RUSSIA CANNOT HOWEVER AGRICULTURE DEPARTMENT OFFICIALS CONTINUE TO RECEIVE RUSSIAN ASSURANCES THAT THE LOAN DEFAULTS WILL BE CLEARED UP IN SHORT ORDER GRAIN TRADERS ARE NERVOUS ABOUT THE LOAN DEFAULTS BECAUSE RUSSIA IS A MAJOR CUSTOMER MOSCOW WON'T GET A 275 MILLION PACKAGE OF US CREDIT GUARANTEES IT WAS SLATED TO RECEIVE THIS MONTH AS LONG AS IT IS IN DEFAULT RUSSIA DEPENDS ON US CREDIT GUARANTEES TO ARRANGE FINANCING TO IMPORT US GRAIN AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SLIPPED 75 CENTS TO SETTLE AT 21575 A BUSHEL US SOYBEAN PRICES SANK BECAUSE RECENT RAINS DOUSED SPECULATION ABOUT THE CHANCES FOR A DROUGHT IN SOUTHERN BRAZIL A MAJOR SOYBEAN GROWING REGION BRAZIL IS A MAJOR COMPETITOR OF THE US IN THE WORLD SOYBEAN TRADE IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS AGGRESSIVE SELLING BY MIDDLE EASTERN SYNDICATES BASED IN EUROPE SET THE TONE FOR A SKID IN GOLD PRICES GOLD FOR FEBRUARY DELIVERY SETTLED DOWN 470 TO 32840 AN OUNCE AT THAT PRICE GOLD IS NOW TRADING AT A SEVENYEAR LOW SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER INC LATER IN THE DAY SWISS DEALERS ACCELERATED THE PRICE SLIDE BY ENTERING THE MARKET AND SELLING ON BEHALF OF GOLD PRODUCERS GOLD PRICES ALSO WERE HURT BY CONTINUING STRENGTH OF THE US DOLLAR AGAINST FOREIGN CURRENCIES AND WEAKNESS IN OIL PRICES ANALYSTS SAID YESTERDAY'S PRICE MOVEMENT POINTS THE WAY FOR GOLD PRICES IN 1993 WITH SOME PREDICTING THAT THE PRICE MAY DROP BELOW 300 AN OUNCE THIS YEAR THEY POINT TO A LACK OF INFLATION IN THE ECONOMY INFLATION TYPICALLY EXERTS UPWARD PRESSURE ON GOLD PRICES ENERGY HEATING OIL FUTURES FELL IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY AND OTHER PETROLEUM FUTURES PRICES CAME TUMBLING AFTER IN THE FIRST POSTHOLIDAY TRADING SESSION THERE WAS LITTLE ENERGY NEWS TO AFFECT THE PRICE MOVES HOWEVER ABOVEAVERAGE TEMPERATURES IN THE NORTHEASTERN US AND A FORECAST FOR UNSEASONABLY WARM WEATHER FOR THE NEXT WEEK SPARKED A SELLOFF THAT LOPPED SLIGHTLY MORE THAN TWO CENTS A GALLON OFF FEBRUARY HEATING OIL THE CONTRACT SETTLED AT 5518 CENTS A GALLON DOWN 203 CENTS FEBRUARY CRUDE LOST 46 CENTS A BARREL TO CLOSE AT 1904 BECAUSE OF SEASONAL DEMAND DIFFERENCES BETWEEN THE TWO GASOLINE DIDN'T TAKE QUITE THE SAME BEATING THAT HEATING OIL DID FEBRUARY GASOLINE LOST 58 CENTS TO CLOSE AT 5417 CENT A GALLON COPPER STRONG BUYING BY CHINA PUSHED COPPER FUTURES PRICES SHARPLY HIGHER REPORTS THAT CHINA WAS BUYING COPPER ON LONDON MARKETS CARRIED US PRICES HIGHER WHICH ACTIVATED BUY STOPS ORDERS TO PURCHASE FUTURES CONTRACTS AT PRESPECIFIED PRICES IN ADDITION LABOR PROBLEMS AT THE VENTANAS SMELTER AND REFINERY IN CHILE THE COUNTRY'S LARGEST SUCH PLANT ARE GROWING WORSE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IF WORKERS AT THE PLANT DON'T REACH A CONTRACT AGREEMENT WITH MANAGEMENT BY THE END OF THE MONTH THEY WILL BE ALLOWED BY LAW TO STRIKE THERE IS SOME CONCERN THAT WE COULD HAVE A STRIKE WHICH WOULD BE EXTREMELY CONSTRUCTIVE TO THE MARKET MR O'NEILL SAID COPPER FOR MARCH DELIVERY ROSE 28 CENTS TO 1064 A POUND 9301050052 930105 MARKETING & MEDIA FOX PRESIDENT KELLNER WHO LED THE NETWORK FROM ITS START RESIGNS NEW YORK FOX BROADCASTING CO PRESIDENT JAMIE KELLNER WHO GUIDED THE FOURTH NETWORK SINCE ITS 1986 START RESIGNED TO PURSUE NEW OPPORTUNITIES MISSION ACCOMPLISHED MR KELLNER SAID OF HIS DECISION TO LEAVE THEY SAID IT COULDN'T BE DONE AND IT'S DONE FOX DIDN'T IMMEDIATELY NAME MR KELLNER'S SUCCESSOR ALTHOUGH SPECULATION CENTERED ON LUCIE SALHANY WHO IS CHAIRMAN OF THE NETWORK'S SISTER UNIT TWENTIETH TELEVISION AND FOX EXECUTIVE VICE PRESIDENT CHASE CAREY MR KELLNER SAID HE PLANS TO TAKE SOME TIME OFF AND THEN START A NEW TELEVISIONRELATED BUSINESS PERHAPS WITH FINANCING FROM RUPERT MURDOCH WHO IS CHAIRMAN OF FOX INC AND ITS PARENT NEWS CORP MR KELLNER HAS ALSO BEEN NAMED TO THE FOX INC BOARD FOX LAUNCHES A SIXTH WEEKLY NIGHT OF PRIMETIME PROGRAMMING ON JAN 19 AND BY NEXT MAY PLANS TO EXPAND ITS ONCEAMONTH MOVIE TO WEEKLY FREQUENCY AND A FULL SEVENNIGHTSAWEEK LINEUP 9301050051 930105 SPO PARTNERS BUYS CONTROLLING STAKE IN PLUM CREEK TIMBER SEATTLE PLUM CREEK TIMBER CO SAID THAT SPO PARTNERS & CO A PRIVATE INVESTMENT FIRM ACQUIRED BURLINGTON NORTHERN RESOURCES INC'S STAKE IN PLUM CREEK FOR 70 MILLION SPO SAN FRANCISCO HAS BEEN BEST KNOWN IN THE PAST AS A KEY ADVISER TO THE BASS BROTHERS IN MANY OF THE TEXAS FINANCIERS' TAKEOVER FORAYS IT IS HEADED BY JOHN H SCULLY WHO ISN'T RELATED TO APPLE COMPUTER CO'S JOHN SCULLY WILLIAM E OBERNDORF AND WILLIAM J PATTERSON THE INVESTMENT GIVES SPO EFFECTIVE CONTROL OVER PLUM CREEK A TIMBERRICH FOREST PRODUCTS LIMITED PARTNERSHIP THAT HAS PROSPERED IN RECENT QUARTERS AS LUMBER PRICES HAVE SURGED THE STAKE ACQUIRED BY SPO INCLUDED BURLINGTON NORTHERN'S GENERAL PARTNERSHIP INTEREST WHICH MEANS SPO NOW IS GENERAL PARTNER OF PLUM CREEK SPO ALSO HAS BEEN THE LARGEST SINGLE HOLDER OF PARTNERSHIP UNITS IN PLUM CREEK SINCE JUNE 1990 BOTH SPO AND PLUM CREEK SAID THEY DON'T ANTICIPATE ANY MAJOR SHAKEUPS AT THE COMPANY WE FEEL VERY COMFORTABLE WITH SPO AS GENERAL PARTNER SAID A PLUM CREEK SPOKESWOMAN WE KNOW THESE PEOPLE IT'S BUSINESS AS USUAL FOR US A SPOKESWOMAN FOR SPO SAID WE SEE THIS AS A LONGTERM INVESTMENT PLUM CREEK WAS CREATED FROM THE FORESTLANDS AND WOODPRODUCTS OPERATIONS OF BURLINGTON NORTHERN THE RAILROAD CONCERN PLUM CREEK NOW IS IN THE ENVIABLE POSITION OF OWNING HUGE STANDS OF TIMBER MUCH OF IT IN IDAHO AND MONTANA LOGGING THERE HASN'T BEEN RESTRICTED AS SHARPLY AS IT HAS IN SPOTTED OWL HAUNTS LIKE WASHINGTON AND OREGON THUS PLUM CREEK HAS BEEN ABLE TO KEEP PRODUCTION HIGH CAPITALIZING ON HIGHER PRICES RELATED IN PART TO OWL RESTRICTIONS IN OTHER FORESTS FOR THE NINE MONTHS ENDED SEPT 30 PLUM CREEK'S NET INCOME ROSE MORE THAN FOURFOLD TO 567 MILLION OR 361 A SHARE ON REVENUE OF 3442 MILLION IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY PLUM CREEK CLOSED AT 44 A SHARE DOWN 375 CENTS 9301050050 930105 BUSINESS BRIEF SUMITOMO BANK LTD BANCA DEL GOTTARDO POSTS 87 DROP IN PROFIT FOR 1992 SWITZERLAND'S BANCA DEL GOTTARDO WHICH IS MAJORITYOWNED BY SUMITOMO BANK LTD OF JAPAN SAID ITS 1992 PROFIT DECLINED 87 NET INCOME DECLINED TO 42 MILLION SWISS FRANCS 287 MILLION FROM 46 MILLION FRANCS IN 1991 THE BANK WITH ASSETS OF 735 BILLION FRANCS BLAMED HIGHER PROVISIONS FOR BAD DEBTS AND WRITEOFFS FROM NEW INVESTMENTS FOR DATAPROCESSING SYSTEMS EQUIPMENT AND REAL ESTATE BANCA DEL GOTTARDO SAID IT ACHIEVED SATISFACTORY RESULTS DESPITE A YEAR MARKED BY NEGATIVE ECONOMIC TRENDS WORLDWIDE VOLATILE FINANCIAL MARKETS AND A SIGNIFICANT DETERIORATION OF THE DEBT SITUATION BOTH INTERNATIONALLY AND IN SWITZERLAND HOWEVER THE BANK SAID IT PLANS TO LEAVE ITS ANNUAL DIVIDEND UNCHANGED AT 20 SWISS FRANCS A BEARER SHARE AND PARTICIPATION CERTIFICATE THIS WILL BE THE FOURTH STRAIGHT YEAR OF FLAT DIVIDEND PAYMENTS FOR BANCA DEL GOTTARDO 9301050048 930105 LETTERS TO THE EDITOR CARE ADVOCATED FORCE TO PREVENT SUFFERING WE AT CARE WERE DISMAYED TO FIND ALEXANDER COCKBURN'S COUNTERPOINT COLUMN A COLD LOOK AT OPERATION RESTORE HOPE IN YOUR DEC 24 ISSUE HE IMPLIES THAT CARE IS PART OF A CONSPIRACY AMONG THE PRESIDENT THE US MILITARY AND THE UN TO EXPLOIT SOMALIA'S SUFFERING FOR POLITICAL ENDS THIS IS FALSE AND CYNICAL IN THE EXTREME CARE DID INDEED LEAD THE AID COMMUNITY IN ADVOCATING USE OF UN SECURITY FORCES IN SOMALIA AND ADVOCATED THAT VIEW TO UN SECRETARYGENERAL BHOUTROSGHALI AND THE US GOVERNMENT THIS ACTION WAS SUPPORTED BY VIRTUALLY EVERY AID ORGANIZATION AT THE OCTOBER CONFERENCE IN GENEVA AND THE DECEMBER CONFERENCE IN ADDIS ABABA BOTH MEETINGS WERE HELD ON RESOLVING THE CRISIS IN SOMALIA UN SPECIAL ENVOY MOHAMED SAHNOUN WHOM MR COCKBURN LAUDS ALSO SUPPORTED THE IDEA CARE ADVOCATED THE USE OF FORCE UNDER THE UN UMBRELLA IN SOMALIA BECAUSE IT WAS NECESSARY TO PREVENT CONTINUED MASSIVE LOSS OF LIFE AND HUMAN SUFFERING IF IT WERE NOT FOR THE SECURITY IMPOSED BY THE UNSANCTIONED TROOPS HUMANITARIAN EFFORTS WOULD BE VIRTUALLY IMPOSSIBLE JUST AS THEY WERE BEFORE THE TROOPS ARRIVED NOTABLY MR COCKBURN HAS NOT PROVIDED OBJECTIVE SUPPORT FOR HIS OPINIONS HAS NOT STUDIED THE SOMALIA SITUATION CLOSELY HAS NEVER SPOKEN TO CARE AND HAS NOT SOUNDED OUT A REPRESENTATIVE SAMPLE OF THE INTERNATIONAL AID COMMUNITY 9301050047 930105 INTERNATIONAL HONG KONG RESTAURANT RECEIPTS HONG KONG THE VALUE OF TOTAL RECEIPTS FOR THE COLONY'S RESTAURANT SECTOR SURGED 21 FROM A YEAR EARLIER IN THE THIRD QUARTER OF 1992 TO 12 BILLION HONG KONG DOLLARS US155 BILLION THE GOVERNMENT REPORTED AFTER DISCOUNTING THE EFFECT OF PRICE CHANGES OVER THE PERIOD THE SECTOR'S TOTAL RECEIPTS ROSE 9 THE VALUE OF TOTAL RECEIPTS OF BARS REGISTERED THE BIGGEST INCREASE 50 IN VALUE AND 35 IN VOLUME IN THE THIRD QUARTER IT WAS FOLLOWED BY FASTFOOD SHOPS WHICH POSTED AN INCREASE OF 25 IN VALUE AND 16 IN VOLUME 9301050046 930105 NORTHWEST AIR PLANS TO LAY OFF 22 OF ITS WORK FORCE IN MOVE TO TRIM COSTS BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES BLAMING THE BRUTAL ENVIRONMENT IN THE DOMESTIC AIRLINE INDUSTRY SAID IT WILL LAY OFF 1043 FLIGHT ATTENDANTS GROUNDSERVICE EMPLOYEES AND RESERVATION SALES AGENTS OR 22 OF ITS WORK FORCE THE ST PAUL MINN AIRLINE A UNIT OF WINGS HOLDINGS INC SAID THE COSTCUTTING MOVE WILL TRIM ITS WORK FORCE TO ABOUT 45000 EMPLOYEES BY MIDMONTH WE HAVE HAD TO MAKE DIFFICULT DECISIONS A COMPANY SPOKESMAN SAID THE NATION'S FOURTHLARGEST AIRLINE HAS BEEN HURT BY INDUSTRYWIDE LOSSES AND BY ITS OWN HUGE DEBT PROBLEM IN RECENT WEEKS THE CLOSELY HELD AIRLINE HAS BEEN FORCED TO CANCEL A 35 BILLION AIRCRAFT ORDER DELAY DELIVERY OF AN ADDITIONAL 27 BILLION ORDER AND DELAY 340 MILLION IN PRINCIPAL DEBT PAYMENTS LAST YEAR THE AIRLINE RESORTED TO A SERIES OF JOB CUTS LAYING OFF 2100 EMPLOYEES ACCORDING TO A COMPANY SPOKESMAN THE LATEST CUTS COME AT A PRECARIOUS TIME FOR THE COMPANY NORTHWEST IS CURRENTLY INVOLVED IN NEGOTIATIONS WITH ITS SIX LABOR GROUPS IN HOPES OF GAINING ABOUT 900 MILLION IN CONCESSIONS DURING THE NEXT THREE YEARS CUTTING AIRCRAFT ORDERS AND TRIMMING THE WORK FORCE DURING VITAL LABOR TALKS IS INDICATIVE OF AN AIRLINE THAT IS EITHER DESPERATE TO CUT EXPENSES OR IS PLAYING HARDBALL WITH LABOR LEADERS INDUSTRY ANALYSTS SAY TOM PEDERSEN WHO HEADS THE AIRLINE'S INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS UNION SAID THE LAYOFFS COULD HAMPER CONTRACT TALKS THESE LATEST LAYOFFS DIVERT ATTENTION FROM THE MOST IMPORTANT TASK AT HAND HE SAID IN A PREPARED STATEMENT THE IAM IS NORTHWEST'S LARGEST LABOR GROUP REPRESENTING 26000 EMPLOYEES THE AIRLINE SAID IT HAS ALREADY MAILED FURLOUGH NOTICES TO EMPLOYEES AFFECTED BY THE STAFF CUTS NORTHWEST SAID THE JOB CUTS ARE BEING IMPLEMENTED ON A SENIORITY BASIS THROUGHOUT ITS SYSTEM AND AFFECTS THOSE HIRED AFTER MARCH 14 1992 SOME 263 GROUNDSERVICE EMPLOYEES AND RESERVATIONS AGENTS WHO ARE REPRESENTED BY THE IAM WERE SERVED NOTICE HOWEVER THE LARGEST HIT WILL BE FLIGHT ATTENDANTS WHO WILL SEE THEIR RANKS DIMINISH BY ABOUT 75 DOWN TO 9900 WORKERS THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS LOCAL 2000 WHICH REPRESENTS NORTHWEST'S FLIGHT ATTENDANTS SAID IT WOULD WITHHOLD COMMENT ON THE ACTION UNTIL ALL OF THE FLIGHT ATTENDANTS AFFECTED HAVE RECEIVED THEIR FURLOUGH NOTICES NORTHWEST SAID RECENT FLIGHTSCHEDULE REDUCTIONS AS WELL AS SUBSTITUTION OF SMALLER PLANES FOR LARGE WIDEBODY AIRCRAFT ON SOME ROUTES HAS REDUCED THE AIRLINE'S REQUIREMENTS FOR FLIGHT ATTENDANTS ONE AIRLINE INDUSTRY ANALYST TIMOTHY PETTEE OF ALLIANCE CAPITAL MANAGEMENT SAID NORTHWEST'S AIRCRAFT SUBSTITUTIONS HAVE THUS FAR BEEN MODEST BUT PROBABLY WILL ACCELERATE A NORTHWEST SPOKESMAN SAID HE DIDN'T KNOW HOW MANY SUCH AIRCRAFT SUBSTITUTIONS MIGHT OCCUR WE'VE BEEN GOING OVER THE SYSTEM LOOKING AT NOT ONLY THE ROUTE ITSELF BUT ALSO DO WE HAVE THE APPROPRIATE AIRCRAFT OPERATING ON IT HE SAID 9301050045 930105 STORM TO REDUCE AETNA'S NET HARTFORD CONN AETNA LIFE & CASUALTY CO ESTIMATED THAT CLAIMS FROM THE DEC 11 EAST COAST WINTER STORM WILL REDUCE FOURTH QUARTER 1992 NET INCOME BY ABOUT 27 MILLION OR ABOUT 25 CENTS A SHARE AFTER REINSURANCE AND TAXES SO FAR AETNA SAID IT HAS RECEIVED ABOUT 14000 CLAIMS IN STATES FROM VIRGINIA TO MAINE AND EXPECTS A TOTAL OF ABOUT 18000 CLAIMS THE COMPANY SAID FOURTH QUARTER RESULTS WILL BE REPORTED ON FEB 10 IN THE YEAREARLIER FOURTH QUARTER AETNA HAD NET INCOME OF 93 MILLION OR 84 CENTS A SHARE 9301050044 930105 BUSINESS BRIEF TEKELEC EXOFFICIAL WINS DAMAGES IN WRONGFUL DISMISSAL CASE TEKELEC SAID A JURY AWARDED A FORMER EMPLOYEE 437500 IN COMPENSATORY DAMAGES FOR WRONGFUL DISMISSAL AND THAT THE PANEL IS STILL DELIBERATING ABOUT PUNITIVE DAMAGES TEKELEC SAID IT PREVIOUSLY RESERVED 230000 FOR POTENTIAL LIABILITY IN THE CASE THE COMPANY BASED IN CALABASAS CALIF SAID IT'S CONSIDERING WHETHER TO APPEAL THE VERDICT IN THE CASE OF MARK TYSON FORMER VICE PRESIDENT SALES AND MARKETING MR TYSON FILED SUIT IN FEBRUARY 1991 ALLEGING THAT THE COMPANY BREACHED AN ORAL EMPLOYMENT AGREEMENT AND WRONGLY DISMISSED HIM THE SUIT SEEKS DAMAGES OF AT LEAST 18 MILLION PLUS PUNITIVE DAMAGES TEKELEC SAID MR TYSON WAS DISMISSED IN OCTOBER 1990 TEKELEC HAS SAID IT EXPECTS TO REPORT A FOURTHQUARTER LOSS OF BETWEEN 5 MILLION AND 55 MILLION TO CUT ITS WORKFORCE ABOUT 10 AND TO NARROW ITS PRODUCT LINES THE COMPANY MAKES TEST EQUIPMENT FOR DIGITAL TELECOMMUNICATIONS NETWORKS IN OVERTHECOUNTER TRADING LATE YESTERDAY TEKELEC STOCK WAS QUOTED AT 9625 UP 625 CENTS 9301050043 930105 MCDONNELL DOUGLAS CORP AGREES TO SELL INTERNATIONAL COMPUTER DATA DIVISION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP SAID IT AGREED TO SELL ITS INTERNATIONAL COMPUTER INFORMATION DIVISION THE LAST REMAINING CHUNK OF ITS ONCEHUGE INFORMATION SYSTEMS SUBSIDIARY WITH PEAK REVENUE OF ABOUT 13 BILLION IN 1988 THE YEAR BEFORE THE SUBSIDIARY WAS DISMANTLED A GROUP OF INSTITUTIONAL INVESTORS ORGANIZED BY BARING CAPITAL INVESTORS LTD OF LONDON AGREED TO BUY THE INTERNATIONAL DIVISION MCDONNELL DOUGLAS INFORMATION SYSTEMS INTERNATIONAL BASED IN HEMEL HEMPSTEAD UNITED KINGDOM THE DIVISION'S REVENUE LAST YEAR WAS ABOUT 180 MILLION 272 MILLION BUT WE HAVEN'T CLOSED THE YEAR YET SAID DAVID MALAPERIMAN A SPOKESMAN FOR THE DIVISION PROFITS WERE SIGNIFICANTLY ABOVE THOSE FOR 1991 WHEN THEY WERE 16 MILLION OR 24 MILLION HE SAID TERMS OF THE PROPOSED SALE WEREN'T DISCLOSED ANALYSTS SAID THEY COULD ONLY GUESS AT THE PRICE BECAUSE MCDONNELL DOUGLAS PROVIDED LITTLE FINANCIAL INFORMATION ABOUT THE DIVISION THE ANALYSTS' GUESSES RANGED FROM AS LITTLE AS ZERO CASH WITH ONLY DEBT ASSUMPTION TO AS MUCH AS 300 MILLION MR MALAPERIMAN THE DIVISION SPOKESMAN SAID HE COULDN'T PROVIDE ANY INFORMATION ABOUT THE DIVISION'S BOOK VALUE OR DEBT A SPOKESWOMAN FOR THE PARENT COMPANY BASED IN ST LOUIS SAID SHE COULDN'T ANSWER QUESTIONS ABOUT THE DIVISION'S OPERATIONS OR FINANCIAL CONDITION THE SALE DECISION IS PART OF THE CONTINUING ACTIONS WE ARE TAKING TO RESTRUCTURE STREAMLINE AND SHARPEN OUR BUSINESS FOCUS SAID HERBERT J LANESE EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OUR STRATEGY IS TO CONCENTRATE ON OUR PRINCIPAL AEROSPACE BUSINESS WHERE WE ARE OR CAN BECOME THE NO 1 OR NO 2 COMPANY WORLDWIDE THE PROPOSED SALE OF THE INTERNATIONAL DIVISION ISN'T DIRECTLY RELATED TO MCDONNELL DOUGLAS'S ANNOUNCEMENT LAST WEEK THAT IT PLANNED TO CUT ITS INTERNAL DATA PROCESSING EXPENSES BY TURNING OVER THOSE OPERATIONS TO AN OUTSIDE SUPPLIER INTERNATIONAL BUSINESS MACHINES CORP BUT BOTH STEPS ARE CONSISTENT WITH MCDONNELL DOUGLAS'S PLAN TO FOCUS ON ITS CORE AEROSPACE OPERATIONS THE INTERNATIONAL DIVISION HAS ABOUT 35 OFFICES WORLDWIDE AND EMPLOYS ABOUT 1800 PEOPLE THE DIVISION PROVIDES TOTAL SYSTEMS SOLUTIONS TO ITS CUSTOMERS WHO ARE MAINLY IN EUROPE IN 1989 THE DIVISION BEGAN TO PHASE OUT ITS OWN HARDWARE MANUFACTURING TO FOCUS ON SOFTWARE AND SUPPORT SERVICES LAST YEAR ABOUT 70 OF THE HARDWARE SUPPLIED TO CUSTOMERS CAME FROM OUTSIDE MANUFACTURERS THE BEGINNINGS OF MCDONNELL DOUGLAS'S COMMERCIAL INFORMATION SYSTEMS BUSINESS LAY IN THE COMPANY'S INTERNAL COMPUTER OPERATIONS THE BUSINESS GREW BY ACQUISITIONS INCLUDING THE 1979 PURCHASE OF MICRODATA WHICH INCLUDED THE INTERNATIONAL DIVISION IN 1984 MCDONNELL DOUGLAS PURCHASED THE HUGE TYMNET NETWORK AND FORMED A SEPARATE COMPUTER INFORMATION SUBSIDIARY BY 1989 HOWEVER THE NEW SUBSIDIARY HAD LOSSES OF ABOUT 340 MILLION MCDONNELL DOUGLAS SOLD TYMNET TO BRITISH TELECOM AND ABANDONED ITS GOAL TO BE A LEADING INFORMATIONSYSTEMS SUPPLIER SINCE THEN MCDONNELL DOUGLAS HAS DISMANTLED OR DIVESTED ITSELF OF ALL OF ITS RELATED OPERATIONS EXCEPT FOR THE INTERNATIONAL DIVISION THAT IT NOW HAS AGREED TO SELL 9301050042 930105 TEST YOUR JOB PROSPECTS BY JOANN S LUBLIN LETS GO DO THE HOP THE JOBHOP QUIZ THAT IS WITH CORPORATE HIRING PICKING UP MANY AMERICANS ARE ITCHING TO SWITCH JOBS SO IS NOW THE RIGHT TIME FOR YOU TO DUST OFF YOUR RESUME AND WHAT ARE YOUR CHANCES OF FINDING A BETTER JOB THERE'S NO SINGLE ANSWER OF COURSE YOUR PROSPECTS DEPEND ON A WIDE RANGE OF FACTORS INCLUDING SOME BEYOND YOUR CONTROL SUCH AS YOUR PRESENT EMPLOYER'S REPUTATION AMONG COMPETITORS BUT THE FOLLOWING UNSCIENTIFIC QUIZ BASED ON INTERVIEWS WITH EXECUTIVE RECRUITERS PERSONNEL OFFICIALS MANAGEMENT CONSULTANTS AND ACADEMICS MAY HELP YOU DECIDE WHETHER TO START JOB HUNTING YOU CAN SCORE ANYWHERE FROM ZERO TO 36 POINTS JUST REMEMBER A HIGH TALLY DOESN'T GUARANTEE AN INSTANT FLOOD OF OFFERS SEE RELATED ARTICLE WORKPLACE BOSSES SEEK WAYS TO HOLD ON TO WORKERS AS RECOVERY ENCOURAGES JOB HOPPING WSJ JAN 5 1993 9301050041 930105 TECHNOLOGY MEDIMMUNE INC SAYS MERCK WILL REVIEW AIDS DRUG RESEARCH GAITHERSBURG MD MEDIMMUNE INC SAID LESS SUCCESSFUL RESEARCH RESULTS THAN WERE EXPECTED ON A POSSIBLE AIDS PREVENTIVE DRUG HAVE PROMPTED MERCK & CO ITS COLLABORATOR TO REVIEW THE RESEARCH PROGRAM MEDIMMUNE SAID MERCK STARTED A SERIES OF NEW ANIMAL LABORATORY EXPERIMENTS FOR THE DRUG MEDI 488 A HUMAN MONOCLONAL ANTIBODY IT SAID THE TWO COMPANIES EXPECT TO FINISH REVIEWING THE RESEARCH IN THE NEXT TWO MONTHS AND THEN DECIDE WHETHER TO CONTINUE THE PROGRAM TO ASSESS THE DRUG'S POTENTIAL TO PREVENT HIV INFECTION THE BIOTECHNOLOGY COMPANY SAID THAT BECAUSE OF THE GENETIC VARIABILITY OF THE HIV WHICH CAUSES AIDS AND THE COMPLEXITY OF THE INFECTION IN HUMANS IT CONTINUES TO BELIEVE THAT ANY EXPECTATIONS FOR MEDI 488 WOULD REMAIN HIGHLY SPECULATIVE EVEN IF THE NEW EXPERIMENTS WARRANT CONTINUING RESEARCH MEDIMMUNE MADE THE ANNOUNCEMENT LATE YESTERDAY IT ALSO ANNOUNCED THAT IT FILED A PRODUCT LICENSE APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR RESPIVIR A POLYCLONAL ANTIBODY DRUG TO PREVENT RESPIRATORY SYNCYTIAL VIRUS DISEASE IN CHILDREN MEDIMMUNE SAID THE VIRUS IS THE LEADING CAUSE OF PNEUMONIA IN CHILDREN KILLING ABOUT 4500 A YEAR AND CAUSING MORE THAN 90000 HOSPITALIZATIONS IN NATIONAL OVERTHECOUNTER TRADING MEDIMMUNE'S SHARES CLOSED AT 2325 UP 25 CENTS A SHARE 9301050040 930105 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR SUMMER INTERNS THE HIRING OUTLOOK IS TENUOUS FOR 1993 AFTER A TWOYEAR DROP OF 50 IN INTERN JOBS SOME FIRMS WILL PROBABLY HIRE MORE THIS YEAR SAYS STEPHEN CANDLAND MANAGING DIRECTOR OF ADVANTAGE INC WHICH PLACES INTERNS IN FINANCIAL INSTITUTIONS INTERNS FIT WELL INTO FLEXIBLESTAFFING PLANS HE SAYS BUT DESPITE THE ECONOMY'S PICKUP CONCERNS INCLUDING GANNETT NEWS SERVICE AND TENNECO GAS DON'T PLAN INTERNHIRING REBOUNDS WHILE MCDERMOTT INTERNATIONAL A NEW ORLEANS ENGINEERING FIRM EXPECTS TO ADD A FEW MORE INTERNS THAN IN 1992 AMOCO WILL HIRE FEWER AMID A 16 WORK FORCE REDUCTION AT HARPERCOLLINS PUBLISHERS AND TEXACO THE INTERN OUTLOOK IS UNCERTAIN ASSOCIATED AVIATION UNDERWRITERS STARTS A MINORITY INTERN PROGRAM FOR AT LEAST TWO STUDENTS A SUMMER TO HELP ATTRACT MORE MINORITY AIRLINE PILOTS JARGON RUNS RAMPANT IN THE EMPLOYMENT BUSINESS IN A FIELD WHERE CORPORATE OFFICIALS WHO DEALT WITH PERSONNEL NOW MANAGE HUMAN RESOURCES WORKFORCE CUTS BECAME DOWNSIZING DOWNSCALING OR DELAYERING OR EVEN AT BELLCORE SURPLUSING FUNCTIONS BUT BEWARE OF A LACK OF OVERALL DIRECTIONAL THINKING WHICH SAYS CONSULTANT KEPNERTREGOE CAN MEAN A COST CREEPBACK NOW MORE SAVVY RIGHTSIZING IS RECOMMENDED DO IT BY OUTSOURCING EVEN BETTER TRY SMARTSOURCING SAYS ALTERNATIVE RESOURCES CORP AN INEVITABLE UPSHOT OF THE IMPROVING ECONOMY UPSIZING A TERM THE INTERNATIONAL ASSOCIATION OF CORPORATE & PROFESSIONAL RECRUITERS ACTUALLY TAKES CREDIT FOR WORK IN AMERICA INSTITUTE TALKS ABOUT UPTIME DON'T FORGET THE BENCHMARKING PROCESS OR BROADBANDING JOBS AND FOR SETTING DOCTORS' FEES TRY CONSULTANT WILLIAM MERCER'S NEW RESOURCEBASED RELATIVE VALUE SCALE STATES SEE FEW LABOR PROBLEMS IN ANY TRANSPORTATIONSPENDING SPEEDUP WITH CLINTON PROMISING MORE SPENDING ON ROADS AND BRIDGES AGENCIES IN STATES INCLUDING OHIO MISSOURI CALIFORNIA ARIZONA THE CAROLINAS AND MISSISSIPPI SAY AMPLE ENGINEERING AND OTHER HELP IS AVAILABLE THE TENNESSEE ROADBUILDING ASSOCIATION SAYS THE INDUSTRY CAN HANDLE A 50 WORK RISE STEPHEN SHEPHERD WHO HEADS AN ATLANTA CONSTRUCTION FIRM THINKS PLANS CAN'T BE DRAWN FAST ENOUGH TO CAUSE A LABOR PINCH CALIFORNIA AND OHIO TRANSPORTATION AGENCIES RECRUIT AGGRESSIVELY AT COLLEGES ARIZONA'S PROJECTS STALL FOR LACK OF MONEY NOT WORKERS FRANCIS FRANCOIS OF THE AMERICAN ASSOCIATION OF STATE HIGHWAY AND TRANSPORTATION OFFICIALS DOES EXPECT A FEW PROBLEMS IN FINDING THE RIGHT PEOPLE TO DO THE WORK AND A CIVILENGINEER SHORTAGE HAMPERS MICHIGAN PLANS AS MANY ENGINEERS TAKE PRIVATESECTOR JOBS SO THE STATE CONTRACTS DESIGN WORK OUT WITH COMPUTERIZED DESIGN SYSTEMS ONE PERSON CAN DO IN A DAY WHAT USED TO TAKE MONTHS FOR A WHOLE TEAM MR FRANCOIS ADDS HASBRO TOY LOCKED OUT 90 TRUCK DRIVERS AND WAREHOUSE WORKERS AT RHODE ISLAND FACILITIES 11 DAYS BEFORE CHRISTMAS AMID THE FIRM'S DEMAND FOR A LOWER NEWHIRE WAGE THE TEAMSTERS UNION SAYS HASBRO IMPLIED IT WILL MOVE THE PAWTUCKET OPERATION TO MEXICO IF WAGES AREN'T SLASHED THE COMPANY DENIES MAKING THE THREAT BUT SAYS THAT AS THE ONLY LARGE TOY MAKER WITH MAJOR US PRODUCTION IT NEEDS WAGE RESTRAINT TO COMPETE AGE DOESN'T INDICATE JOB FITNESS FOR POLICE AND PRISON OFFICERS OR FIRE FIGHTERS A PENNSYLVANIA STATE UNIVERSITY STUDY CONCLUDES THE STUDY OF OVER 400 DEPARTMENTS SUBMITTED TO CONGRESS RECOMMENDS THAT AN EXEMPTION FROM AGEDISCRIMINATION LAW ALLOWING AGEBASED HIRING AND RETIREMENT POLICIES FOR PUBLICSAFETY AGENCIES BE ALLOWED TO EXPIRE AFTER 1993 COSTLY TRAINING THE COST FOR MANUFACTURING COMPANIES TO TRAIN A NEW HIRE HAS RISEN TO 10000 FROM 2000 IN 1985 AND WILL DOUBLE TO 20000 BY THE YEAR 2000 SAYS CONSULTANT PHH FANTUS REMOVAL OF MANY MIDDLE MANAGERS WHO ONCE TRAINED MANY WORKERS HAS REQUIRED SPECIAL TECHNICAL INSTRUCTION FOR EACH EMPLOYEE IT SAYS SLOWING DOWN THE NUMBER OF STATE AND LOCAL GOVERNMENT WORKERS ROSE 135 IN THE 1980S WHEN PRIVATE EMPLOYMENT CLIMBED 233 A STUDY CENTER AT THE STATE UNIVERSITY OF NEW YORK REPORTS IN THE PREVIOUS 20 YEARS STAFFS ROSE MUCH FASTER IN THE PUBLIC SECTOR THAN AT PRIVATE EMPLOYERS A NURSE SHORTAGE MAY BE EASING BUT STRESS PERSISTS MOST OF THE 10000 HOSPITAL AND NURSINGHOME NURSES IN A SURVEY BY THE SERVICE EMPLOYEES UNION TO BE RELEASED THURSDAY REPORT CHRONIC SHORT STAFFING WHICH THEY SAY ENDANGERS PATIENTS BECAUSE OF CONTINUED HIGH RATES OF STRESS AND RELATED AILMENTS TWOTHIRDS OF THE NURSES SAY THEY ARE READY TO LEAVE THEIR EMPLOYER OR THE FIELD GROUPS LIKE THE AMERICAN HOSPITAL ASSOCIATION HAVE REPORTED A LESSENING NURSE SHORTAGE BUT THE NURSE SURVEY SHOWS WOEFULLY INADEQUATE STAFFING WITH NURSEPATIENT RATIOS 50 TO 100 HIGHER THAN ACCEPTED STANDARDS A UNION SPOKESWOMAN SAYS MORE HOSPITALS SHOULD USE SKILLED NURSE PRACTITIONERS INSTEAD OF MEDICAL RESIDENTS FOR DAYTODAY PATIENT CARE THE AMERICAN NURSES ASSOCIATION SAYS THE CHECKOFF THE JOB PROBLEM HOT LINE OF 9 TO 5 THE WORKING WOMEN'S GROUP IS OPEN FROM 10 TO 4 CONNECTICUT SCHEDULES NEARLY 6200 PEOPLE TO TAKE A STATE TROOPER EXAM WITH ABOUT 400 OR SO EXPECTED TO QUALIFY IN MID1990 3203 TOOK THE TEST 9301050039 930105 ALASKA AIR CANCELS FACILITY SEATTLE ALASKA AIR GROUP INC SAID ITS ALASKA AIRLINES UNIT CANCELED PLANS TO BUILD A 45 MILLION MAINTENANCE FACILITY AND WILL TRIM SOME MANAGEMENT JOBS AS PART OF ITS EFFORTS TO CUT COSTS ALASKA AIR HAS BEEN BADLY WOUNDED BY AIRLINE FARE WARS LAST MONTH IT SUSPENDED ITS DIVIDEND THE COMPANY HAS ALREADY ANNOUNCED PLANS TO CURTAIL AIRCRAFT ORDERS AND OTHER CAPITALSPENDING PROJECTS IN ADDITION TO DROPPING THE PLANNED MAINTENANCE FACILITY AND ELIMINATING ABOUT 124 MANAGEMENT STAFF AND OTHER POSITIONS ALASKA AIR SAID IT WILL STOP FLYING BETWEEN SEATTLE AND BOISE IDAHO THE COMPANY HAS IDENTIFIED OTHER COSTCUTTING MEASURES AND WILL ADD SEATS TO SOME OF ITS PLANES IN AN EFFORT TO SQUEEZE MORE REVENUE OUT OF CERTAIN FLIGHTS ALASKA AIR SAID THE VARIOUS STEPS ARE DESIGNED TO CUT OPERATING EXPENSES ABOUT 50 MILLION A YEAR THE COMPANY DIDN'T INDICATE WHAT IMPACT THE MOVES MIGHT HAVE ON EARNINGS OR WHETHER ALASKA AIR EXPECTS ANY WRITEDOWNS RELATED TO THE COSTCUTTING EFFORTS IN THE NINE MONTHS ENDED SEPT 30 ALASKA AIR HAD A NET LOSS OF 357 MILLION OR 306 A SHARE ON REVENUE OF 8564 MILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITS SHARES CLOSED AT 1675 UP 25 CENTS 9301050038 930105 TECHNOLOGY GENSIA SEEKS APPROVAL FROM FDA TO MARKET HEART DRUG ARASINE SAN DIEGO GENSIA PHARMACEUTICALS INC SAID IT FILED AN APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR APPROVAL TO MARKET THE COMPANY'S ARASINE DRUG FOR PATIENTS UNDERGOING CORONARY BYPASS SURGERY THE APPLICATION FILED WEDNESDAY IS THE FIRST FOR THE PHARMACEUTICAL CONCERN'S CLASS OF COMPOUNDS CALLED ADENOSINE REGULATING AGENTS ARASINE IS DESIGNED TO STIMULATE THE BODY'S RELEASE OF ADENOSINE A NATURALLY OCCURRING MOLECULE BELIEVED TO PROTECT AGAINST TISSUE DAMAGE FROM HEART ATTACKS AND CARDIAC PROCEDURES IN SEPTEMBER GENSIA SAID AN ARASINE STUDY CONDUCTED IN THE US PROVIDED CLINICALLY IMPORTANT AND STATISTICALLY SIGNIFICANT BENEFITS IN REDUCING THE INCIDENCE OF HEART ATTACKS AND OTHER ADVERSE OUTCOMES FROM HEARTBYPASS SURGERY AT THE SAME TIME THE COMPANY DISCLOSED THAT RESULTS FROM A STUDY IN CANADA AND CERTAIN EUROPEAN COUNTRIES WEREN'T STATISTICALLY SIGNIFICANT THE AMBIGUOUS RESULTS KNOCKED SHARES OF THE FLEDGLING BIOTECHNOLOGY COMPANY DOWN 13625 TO 22 ON SEPT 22 1992 THE DAY OF THE ANNOUNCEMENT YESTERDAY AFTERNOON GENSIA SHARES WERE QUOTED AT 2550 UP 1 IN OVERTHECOUNTER TRADING GENSIA SAID ITS FDA FILING INCLUDES DATA FROM BOTH STUDIES AS WELL AS FROM A THIRD EARLIER STUDY ALTHOUGH THE OVERALL RESULTS OF THE INTERNATIONAL STUDY WEREN'T STATISTICALLY SIGNIFICANT A REDUCTION IN THE INCIDENCE OF HEART ATTACKS WAS SIGNIFICANT IN TWO SUBGROUPS A SPOKESWOMAN SAID OUR CLINICAL AND REGULATORY PEOPLE ARE CONFIDENT THAT THE FDA FILING IS A STRONG PACKAGE THE SPOKESWOMAN SAID AFTER THE MIXED RESULTS WERE DISCLOSED HOWEVER THE COMPANY ANNOUNCED THAT IT WOULD LAUNCH A NEW CLINICAL TRIAL AS ADDITIONAL SUPPORT FOR ITS APPLICATION RESULTS FROM THAT TEST WHICH BEGINS LATER THIS MONTH ARE EXPECTED BY MID1994 9301050036 930105 LEGAL MANEUVERS FORD ATTORNEYS PLAYED UNUSUALLY LARGE ROLE IN BRONCO II'S LAUNCH EXPECTING ROLLOVER LAWSUITS FIRM GATHERED RECORDS CHANGED THE DESIGN A BIT RACING THE BLAZER TO MARKET BY MILO GEYELIN AND NEAL TEMPLIN STAFF REPORTERS OF THE WALL STREET JOURNAL DEARBORN MICH A PROTOTYPE OF FORD MOTOR CO'S BRONCO II LIFTED A FRONT WHEEL OFF THE ROAD WHILE ROUNDING A TEST TRACK HERE IN 1982 AND THE COMPANY ISN'T LIKELY TO HEAR THE END OF IT FOR A VERY LONG TIME THE LIFTOFF WAS WITNESSED BY THE COMPANY'S HEAD OF AUTOMOTIVE SAFETY HIS IMMEDIATE SUPERIOR AND FORD'S TOP INHOUSE LAWYER THE SAME DAY FORD ORDERED SUPERVISING ENGINEERS TO SPEED UP THE HANDING OVER TO ITS LAWYERS OF COPIES OF ALL BRONCO II ENGINEERING AND SAFETY RECORDS FORD SAYS THE TWO EVENTS WERE UNRELATED BUT THE PURPOSE OF THE DOCUMENT ROUNDUP WHICH IT CONCEDES WAS UNPRECEDENTED IN THE DEVELOPMENT OF ANY OF ITS VEHICLES WAS TO PREPARE FOR SAFETYRELATED LAWSUITS THAT FORD EXPECTED AFTER THE BRONCO II ENTERED THE MARKETPLACE THIS WAS REMARKABLE FORWARD PLANNING FOR A MODEL NOT YET SOLD TO THE FIRST CUSTOMER IT REFLECTED FORD'S CONCERN THAT THE BRONCO II ESSENTIALLY A TWODOOR FAMILYSTYLE JEEP KNOCKOFF TENDED NOT ONLY TO TIP BUT TO ROLL OVER COMPLETELY AT RELATIVELY MODERATE SPEEDS IN ADDITION THE COMPANY WAS AWARE OF BAD PUBLICITY ABOUT THE DANGERS OF SIMILAR OFFROAD VEHICLES AND THE ENSUING LITIGATION IT KNEW ITS NEW MODEL WOULD HAVE TO SELL IN COURTROOMS AS WELL AS SHOWROOMS MANY COMPANIES THESE DAYS RELY ON INHOUSE LEGAL HELP WHEN DEVELOPING NEW PRODUCTS BUT FORD CONCEDES THAT THE DEGREE OF LAWYER INVOLVEMENT IN THE DEVELOPMENT OF THE BRONCO II WAS UNUSUAL THIS WAS OUR FIRST SMALL UTILITY VEHICLE AND THERE WERE ISSUES SAYS RICHARD MOLLOY ASSOCIATE GENERAL COUNSEL AT FORD AS IT TURNED OUT THE LAWYERS' WORRIES WERE PRESCIENT AFTER SOME SAFETYRELATED REVISIONS THE SPORTY BRONCO II FOURWHEELDRIVE WENT INTO PRODUCTION IN JANUARY 1983 AND A REARWHEELDRIVE VERSION 2 1/2 YEARS LATER BY MOST MEASURES THE VEHICLE ESPECIALLY ITS REARWHEELDRIVE VERSION WAS LESS STABLE THAN ITS MAIN COMPETITORS' MODELS MORE THAN 260 PEOPLE HAVE DIED IN ACCIDENTS IN WHICH A BRONCO II FLIPPED OVER ACCORDING TO THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY SEVERAL TIMES MORE THAN WITH ANY SIMILAR VEHICLE THUS FAR FORD HAS SETTLED MORE THAN 100 LAWSUITS ALL WITH STRICT CONFIDENTIALITY PROVISIONS AND HAS ANOTHER 100 BRONCO II CASES PENDING ONLY TWO HAVE GONE TO TRIAL FORD LOST ONE AND WON THE OTHER WHEN THE JURY DECIDED THAT THE DRIVER WAS MORE THAN 50 AT FAULT AND SO DIDN'T REACH THE ISSUE OF WHETHER THE VEHICLE'S DESIGN WAS DEFECTIVE COURT TESTIMONY IN THESE CASES AS WELL AS DOCUMENTS MADE PUBLIC FOR THE FIRST TIME AS TRIAL EXHIBITS SHED NEW LIGHT ON THE USUALLY SECRETIVE PROCESS OF PRODUCT DEVELOPMENT AND ON THE INTERPLAY IN THE AGE OF LITIGATION OF ENGINEERS MARKETERS AND LAWYERS IN CREATING A NEW MODEL THE COURT RECORDS REVEAL THAT FORD KNEW IN 1981 THAT IT COULD STABILIZE THE VEHICLE CONSIDERABLY BY SWITCHING TO A MUCHWIDER CHASSIS BUT RUNNING BEHIND IN A RACE TO MARKET WITH GENERAL MOTORS CORP'S S10 BLAZER DIDN'T DO SO FACED LATER WITH EVIDENCE THAT THE S10 BLAZER WAS GOING TO HIT THE MARKET WITH A BETTER STABILITY RATING FORD MADE MOSTLY SUPERFICIAL LASTMINUTE CHANGES IN THE BRONCO II THAT PROVED TO HAVE LITTLE SAFETY VALUE MORE THAN 50 DOCUMENTS THAT SHOULD HAVE BEEN INCLUDED IN THE 1982 ROUNDUP WERE INSTEAD DESTROYED FORD SAYS INADVERTENTLY THESE INCLUDED FILMS OF ROLLOVER TESTS REPORTS ON CHANGES NEEDED TO IMPROVE STABILITY AND MEMOS TO TOP MANAGEMENT ABOUT FORD'S MARKETING CONCERNS TESTS THAT FORD RAN AFTER THE BRONCO II WENT ON THE MARKET IN 1983 CONTINUED TO INDICATE THE VEHICLE'S TENDENCY TO TIP OR ROLL OVER ON SHARP TURNS INITIAL REPORTS FROM THE JURY ROOM INDICATE THAT THE COMPANY'S EARLY ANTICIPATION OF LAWSUITS WON'T PLAY WELL IN COURT AND ULTIMATELY MAY EVEN WEAKEN ITS CASE LAWYERS FOR BOTH SIDES LEARNED THIS IN INTERVIEWS WITH JURORS IN THE BINGHAMTON NY ROLLOVER CASE THAT FORD LOST AND EVEN IN THE CASE FORD WON IN BATESVILLE ARK THREE JURORS SAID AFTERWARD THAT FORD'S CONDUCT DURING THE DEVELOPMENT PROCESS HEIGHTENED THEIR CONCERN ABOUT WHETHER THE BRONCO II WAS DEFECTIVE I WAS CONVINCED THE PRODUCT WAS UNSAFE AND I WAS ALSO CONVINCED THAT TO GET READY FOR LAWSUITS WAS SUSPICIOUS SAYS KATHLEEN BAILEY A SCHOOL LIBRARIAN AND A JUROR FORD DEFENDS ITS ACTIONS AND STANDS BEHIND THE BRONCO II 700000 OF WHICH ARE STILL ON THE ROAD THOUGH THE VEHICLE WENT OUT OF PRODUCTION IN 1990 IN FAVOR OF THE HEAVIER MORE STABLE EXPLORER A FEDERAL SAFETY AGENCY DECIDED AFTER AN INVESTIGATION LAUNCHED IN 1989 THAT THE BRONCO II'S HANDLING CHARACTERISTICS COULDN'T BE CONSIDERED A SAFETY DEFECT FORD ALSO SAYS ITS OWN STUDIES SHOW THAT THE BRONCO II IS NO LESS STABLE THAN SOME OTHER SPORT UTILITY VEHICLES IN ITS CLASS AND THAT ROLLOVERS MOSTLY RESULT FROM OTHER VARIABLES SUCH AS POOR ROAD CONDITIONS AND CARELESS DRIVING AND FORD DEFENDS ITS LAWYERS' ROLE IT MAKES A NICE STORY FOR PLAINTIFFS' LAWYERS TO PORTRAY COMPANIES AS INVOLVED IN SOME KIND OF SINISTER PROJECT WHEN BRINGING LAWYERS INTO THE PROCESS OF DEVELOPING A VEHICLE SAYS FORD ASSOCIATE GENERAL COUNSEL MOLLOY BUT THE FACT OF THE MATTER IS WHAT THE COMPANY DID WAS ENTIRELY APPROPRIATE AND WHAT ALL GOOD COMPANIES SHOULD DO HE ADDS THE UNDERLYING MESSAGE HERE IS THAT WE WERE PROACTIVE WE WERE ANTICIPATING THE ISSUE AND WE DID OUR BEST TO ASSIST THE COMPANY TO AVOID LITIGATION ISSUES THE IDEA FOR THE BRONCO II EMERGED IN THE LATE 1970S WHEN LIGHT UTILITY VEHICLES SHORTER NARROWER AND MORE MANEUVERABLE THAN THEIR FULLSIZED COUSINS WERE GAINING POPULARITY FORD AND OTHER AUTO MAKERS BELIEVED THAT SUCH MODELS WOULD ATTRACT UPSCALE YOUNG DRIVERS ESPECIALLY WOMEN WITH YOUNG FAMILIES LOOKING FOR SOMETHING TO REPLACE THE STATION WAGON FORD ALSO WAS TRYING TO CREATE A SMALLER VERSION OF ITS BIG BRONCO TO MEET TOUGHENING FEDERAL FUELECONOMY STANDARDS THE POPULAR JEEP CJ7 THEN A PRODUCT OF AMERICAN MOTORS CORP BECAME FORD'S INSPIRATION FOR THE SMALLER BRONCO WHICH IN OCTOBER 1980 WON FINAL APPROVAL FROM TOP MANAGEMENT TO GO INTO PRODUCTION FORD OFFICIALS KNEW THAT THEY HAD TO MOVE QUICKLY BECAUSE GM WAS PLANNING TO LAUNCH ITS NEW ENTRY IN THE FALL OF 1982 A FULL SIX MONTHS BEFORE THE FIRST BRONCO II WOULD LEAVE THE ASSEMBLY LINE IN LOUISVILLE KY THE COMPETITION WITH GM WOULD INFLUENCE SOME OF FORD'S MOST IMPORTANT DECISIONS REGARDING THE BRONCO II IN THE MONTHS AHEAD FORD DECIDED RIGHT AWAY TO BUILD THE BRONCO II ON THE SAME CHASSIS AS THE RANGER COMPACT PICKUP TRUCK ACCORDING TO THE LATER TESTIMONY OF FORD ENGINEERS FROM THE DRIVER'S SEAT FORWARD THE TWO VEHICLES WOULD BE IDENTICAL USING THE RANGER PLATFORM WOULD SAVE FORD THE TIME AND EXPENSE OF BUILDING A SEPARATE CHASSIS BUT THAT DECISION WOULD LATER COMPLICATE FORD'S EFFORTS TO IMPROVE THE BRONCO II'S STABILITY FORD BECAME MORE CONSCIOUS ABOUT THE DANGER OF ROLLOVERS AT ONLY MODERATE SPEEDS LONG BEFORE THE BRONCO II UNDERWENT ROAD TESTS IN DECEMBER 1980 JUST TWO MONTHS AFTER THE BRONCO II WAS APPROVED FOR DEVELOPMENT THE CBS NEWS PROGRAM 60 MINUTES TOOK A DEVASTATING LOOK AT THE JEEP CJ5 WHICH WAS ALMOST IDENTICAL TO THE CJ7 MODEL THAT HAD INSPIRED FORD WITH CAMERAS ROLLING THE JEEP FLIPPED OVER WHILE MAKING MILD JSHAPED TURNS AT SPEEDS AS LOW AS 22 MILES PER HOUR THERE WASN'T ANYBODY BUILDING A UTILITY VEHICLE IN 1980 WHO WASN'T AWARE OF THE 60 MINUTES' AND CJ CONTROVERSY SAYS WARREN PLATT A PHOENIX LAWYER WHO REPRESENTS FORD IN BRONCO II LITIGATION FORD KNEW THAT THE PROGRAM WOULD PROBABLY SPARK A SURGE OF LITIGATION AGAINST MANUFACTURERS OF ANY LIGHT UTILITY VEHICLES INVOLVED IN ROLLOVER ACCIDENTS AND THAT A FOCAL POINT IN EACH CASE WOULD BE THE VEHICLE'S STABILITY RATING LIKE MANY IN THE INDUSTRY FORD ENGINEERS RELIED PRIMARILY ON THE STABILITY INDEX A MEASUREMENT THAT DIVIDES THE WIDTH BETWEEN THE WHEELS BY THE HEIGHT OF THE VEHICLE'S CENTER OF GRAVITY THE HIGHER THE RESULTING NUMBER THE GREATER THE STABILITY FORD ENGINEERS KEPT A CLOSE EYE ON THIS INDEX AS THEY TESTED THE BRONCO II THE HIGHEST RATING THAT THEY BELIEVED ACHIEVABLE FOR THE GENERAL DESIGN FOR THE VEHICLE THEY WANTED TO BUILD WAS 225 THEY KNEW THEY HAD A LONG WAY TO GO WHEN IN FEBRUARY 1981 EARLY DESIGNS YIELDED A FIGURE OF 185 THE BEST WAY TO IMPROVE THE RATING THE ENGINEERS LATER SAID THEY HAD DETERMINED WOULD BE TO WIDEN THE BRONCO II SUBSTANTIALLY BUT GREATER WIDTH WOULD INCREASE SIZE AND WEIGHT AND REDUCE FUEL EFFICIENCY THUS MOVING THE BRONCO II TOWARD THE LARGER BRONCO IN DESIGN AND DEFEATING MUCH OF THE PURPOSE OF CREATING THE SMALLER MODEL MOREOVER PLANS TO USE THE NARROWER RANGER CHASSIS WOULD HAVE TO BE SCRAPPED AND FORD WOULD HAVE TO INVEST IN A NEW CHASSIS AND A RETOOLED ASSEMBLY LINE IN ADDITION TO THE EXPENSE SUCH CHANGES WOULD HAVE DERAILED FORD'S EFFORT TO RELEASE THE BRONCO II WITHIN MONTHS OF THE LAUNCH OF GM'S NEW BLAZERS POSSIBLY RISKING MARKET SHARE FORD'S SUPERVISING ENGINEERS CHOSE A LESS RADICAL AND LESS TIMECONSUMING OPTION WIDENING THE FRAME AND AXLES ONLY SLIGHTLY AND STICKING WITH THE RANGER CHASSIS BUT EARLY TESTS AT FORD'S ARIZONA PROVING GROUNDS IN APRIL 1982 WERE DISAPPOINTING THE BRONCO II FITTED WITH 15INCH WHEELS AND LARGE TIRES ROLLED OVER IN TIGHT JTURNS AT SPEEDS AS LOW AS 35 MPH FORD THEN TRIED LOWERING THE CENTER OF GRAVITY BY USING 14INCH WHEELS AND SMALLER TIRES AND GOT BETTER RESULTS THE BRONCO II COULD TAKE A JTURN AT 55 MPH BUT THE COMPANY DECIDED TO STICK WITH THE BIGGER WHEELS BOTH TO PROVIDE HIGHER CLEARANCE IN OFFROAD DRIVING AND BECAUSE SOME CUSTOMERS LIKED THE BIGWHEEL LOOK FORD OFFICIALS NOW SAY IN INTERVIEWS FORD LEFT THE CHOICE OF TIRE SIZE UP TO BUYERS AFTER THE APRIL TESTS ROGER MAUGH THEN FORD'S DIRECTOR OF AUTOMOTIVE SAFETY FORMED A SPECIAL BRONCO II COMMITTEE THAT WOULD BECOME OF MUCH INTEREST IN THE LAWSUITS THE COMMITTEE INCLUDED SENIOR ENGINEERS AND SAFETY SPECIALISTS WHO WOULD MONITOR TEST PROCEDURES ANALYZE RESULTS AND ADDRESS SAFETY CONCERNS AN INHOUSE LAWYER WAS ON THE COMMITTEE AS WELL NO NOTES OR MINUTES WOULD BE TAKEN AS FORD SAYS WAS ITS PRACTICE IN WORKING GROUPS FROM THEN ON FORD LAWYERS WERE INVOLVED IN DEVELOPING THE VEHICLE PROVIDING PREVENTIVE LEGAL ADVICE ON JUST HOW SAFE THE BRONCO II HAD TO BE KEEPING TRACK OF ANY DOCUMENTS THAT COULD BE USED AGAINST THE COMPANY IN COURT AND HELPING DEVELOP A WARNING LABEL AND USERS' MANUAL FOR THE VEHICLE IN THE FOLLOWING MONTHS TESTS CONTINUED TO SIGNAL PROBLEMS IN MAY 1982 FOR EXAMPLE A BRONCO II ROLLED OVER ON A JTURN AFTER BREAKING AN OUTRIGGER THE METAL GUARDS ATTACHED LIKE PONTOONS TO KEEP TEST CARS FROM FLIPPING OVER CONCERNED ABOUT TEST DRIVERS' SAFETY FORD SUSPENDED FURTHER JTURN TESTS AND BEGAN RELYING INSTEAD ON COMPUTER SIMULATIONS THE NEXT MONTH WITH THE PRODUCTION DEADLINE ONLY SEVEN MONTHS AWAY THE BRONCO II'S SUPERVISING ENGINEERS GAVE A SLIDE PRESENTATION TO FORD'S TOP EXECUTIVES INCLUDING HAROLD A POLING THEN HEAD OF ITS NORTH AMERICAN AUTO OPERATIONS AND NOW FORD'S CHAIRMAN WITH A STABILITY INDEX RATING OF 203 THE LATEST VERSION OF THE BRONCO II WAS STILL SCORING LOWER THAN FORD HAD DESIRED BUT IN SUBJECTIVE EVALUATIONS FORD ENGINEERS RATED THE VEHICLE HIGH AND THE BRONCO II'S STABILITY INDEX WAS SIMILAR TO WHAT THEY WERE PREDICTING FOR GM'S S10 BLAZER DUE OUT THAT FALL BESIDES MR POLING WAS TOLD IN THE ENGINEERS' REPORT TRYING TO IMPROVE STABILITY BY WIDENING THE BRONCO II SIGNIFICANTLY WAS NOW NO LONGER FUNCTIONALLY FEASIBLE THERE WAS STILL TIME TO FINETUNE THE VEHICLE HOWEVER AND THE ENGINEERS TRIED ADDING METAL STABILIZER BARS TO THE FRONT AND REAR OF ITS FRAME TO STIFFEN ITS REACTION IN TURNS BY MIDSUMMER THE BRONCO II'S LATEST CONFIGURATION WAS CONSIDERED READY TO BE SHOWN TO SOME COMPANY EXECUTIVES ON AUG 13 1982 THE ENGINEERS SCHEDULED AN EVALUATION DRIVE FOR HENRY R NOLTE JR THEN FORD'S TOP INHOUSE LAWYER MR MAUGH THE SAFETY DIRECTOR AND HIS SUPERIOR HERBERT MISCH VICE PRESIDENT IN CHARGE OF ENVIRONMENTAL AND SAFETY ENGINEERING AS THEY WATCHED A BRONCO II EQUIPPED WITH THE LATEST CONFIGURATION OF STABILIZERS LEANED INTO A TURN ON A CIRCULAR TRACK THE SIZE OF A FOOTBALL FIELD AT 43 MPH ONE OF THE VEHICLE'S FRONT WHEELS LIFTED OFF THE TRACK FORD TERMS THE TEST A SUCCESS BUT THAT SAME DAY ITS LAWYERS STEPPED UP EFFORTS TO COLLECT ENGINEERING AND SAFETY RECORDS TO PREPARE FOR LAWSUITS IN ADDITION TO ORDERING ENGINEERS TO CLOSE LOOP ON VEHICLE DOCUMENTATION THE MEMO AUTHORIZED BY THE GENERAL COUNSEL'S OFFICE ASKED THAT FORD ENGINEERS BE PREPARED TO PROVIDE EXPLANATIONS FOR ALL CHANGES IN THE BRONCO II DESIGN AND TO RESOLVE ALL OPEN ISSUES BUT MORE DESIGN CHANGES WERE YET TO COME THAT FALL GM LAUNCHED THE LONGAWAITED S10 BLAZER WITH A STABILITY RATING OF 220 HIGHER THAN FORD ENGINEERS HAD EXPECTED AND MUCH HIGHER THAN THE BRONCO II'S 203 A FORD SUPERVISING ENGINEER A MEMBER OF THE BRONCO II SPECIAL COMMITTEE LATER TESTIFIED THAT THE RELATIVE RATINGS WORRIED THE FORD EXECUTIVES WHO DISCUSSED AMONG OTHER THINGS THE PRODUCTLIABILITY PROBLEMS THE COMPARISON MIGHT CAUSE FORD IT WAS ABOUT THIS TIME THAT FORD'S INHOUSE LAWYERS ASKED THAT THE VEHICLE BE BROUGHT UP TO A STABILITY INDEX OF AT LEAST 21 FORD UNDERSTOOD SAYS ITS TRIAL ATTORNEY MR PLATT THAT IRRESPECTIVE OF HOW THE VEHICLE ACTUALLY PERFORMED NO MATTER WHAT ITS ROLLOVER RATES WERE THERE WOULD BE AN ALLEGATION THAT THE VEHICLE WAS NOT SUITABLE UNLESS THE STABILITY INDEX WAS AS HIGH AS YOU CAN MAKE IT FORD SAYS THE STABILITY INDEX ISN'T ENTIRELY RELIABLE IN MEASURING THE VEHICLE'S PROPENSITY TO TIP OVER BUT IT ADDS THAT THE INDEX HAS BEEN USED EFFECTIVELY AGAINST IT IN LITIGATION YET WITH FOUR MONTHS REMAINING BEFORE THE BRONCO II'S PRODUCTION DEADLINE FORD WAS PAST THE STAGE WHERE IT COULD EASILY MAKE CHANGES PRODUCTION CONTRACTS FOR THE DIES MOLDS AND STAMPS THAT WOULD BE USED TO BUILD THE VEHICLE WERE ALREADY OUT AND DRAWN TO PRECISE SPECIFICATIONS ENGINEERS RESPONDED WITH A HALF MEASURE TO LOWER THE CENTER OF GRAVITY THEY ADDED 114 POUNDS BENEATH THE CHASSIS BY ENLARGING THE GASOLINE TANK BY SIX GALLONS PUTTING A HEAVIER PROTECTION PLATE UNDER THE TANK AND USING HEAVIER AND SLIGHTLY WIDER WHEELS THAT LOWERED THE BRONCO II ENOUGH TO BRING THE STABILITY INDEX UP TO 214 BUT THE LASTMINUTE WEIGHT ADDITIONS WERE INCONSEQUENTIAL IMPROVEMENTS AS FORD LATER ADMITTED IN COURT TESTIMONY BY BURNING THROUGH A TANK OF GASOLINE A DRIVER WOULD LIGHTEN THE BRONCO II ENOUGH TO CANCEL OUT THE 114POUND ADDITION NONETHELESS IN NOVEMBER 1982 FORD ENGINEERS PRAISED THE BRONCO II AS THE BEST IN ITS CLASS IN A MEETING WITH MR POLING AND OTHER TOP EXECUTIVES THE ENGINEERS EXPLAINED THAT THE NEW STABILIZER BARS NOT MEASURABLE BY THE WIDTHOVERHEIGHT INDEX WERE EXPECTED TO HELP DETER ROLLOVERS THE BRONCO II THE ENGINEERS' REPORT TO MR POLING PREDICTED SHOULD NOT BE INVOLVED IN ANY MORE ROLLOVER ACCIDENTS THAN FULLSIZED UTILITIES BUT THROUGHOUT THE FOURTH QUARTER OF 1982 WHILE FORD ENGINEERS WERE MAKING CONFIDENT PREDICTIONS ABOUT THE VEHICLE'S SAFETY A MEMBER OF THE BRONCO II AD HOC COMMITTEE REVIEWED INTERNAL ENGINEERING AND SAFETY RECORDS AS THEY CAME IN ADDING DOZENS OF MARGIN NOTES AND OTHER CHANGES TO CLARIFY AMBIGUITIES AND INCONSISTENCIES ACCORDING TO HIS DEPOSITION NONE OF THE ORIGINAL CONTENT WAS CHANGED SAYS FORD TRIAL LAWYER MR PLATT BUT FORD CONCEDES THAT NO ONE AT THE COMPANY HAD EVER MADE SUCH AN EFFORT TO CLARIFY DOCUMENTS WHILE A VEHICLE WAS STILL BEING DEVELOPED IN ADDITION MORE THAN 50 DOCUMENTS THAT WERE SUPPOSED TO BE COLLECTED DURING THE RECORDGATHERING COULDN'T BE FOUND WHEN SOUGHT DURING PRETRIAL FACTFINDING IN THE LAWSUITS FORD OFFICIALS SAY THESE DOCUMENTS WERE NEVER TURNED OVER AND WERE DESTROYED AS PART OF ROUTINE RECORDSMANAGEMENT BECAUSE OF A MISUNDERSTANDING AMONG ITS ENGINEERS EVEN A COPY OF THE COMPANY MANUAL FOR DESTROYING RECORDS WAS DESTROYED WARNING SIGNS PERSISTED AFTER THE FIRST BRONCO II ROLLED OFF THE ASSEMBLY LINE ON JAN 10 1983 THAT MARCH A FORD COMPUTER SIMULATED THE BRONCO II'S PERFORMANCE IN A NEW SLALOM TEST DESIGNED TO SHOW HOW THE VEHICLE PERFORMED IN AN EMERGENCY SWERVE THE SIMULATED BRONCO II LIFTED TWO WHEELS OFF THE GROUND AT 32 MPH FORD'S LATER EXPLANATION THE TEST EMPLOYED UNREALISTIC STEERING MANEUVERS MORE SEVERE THAN ANY DRIVER COULD SUSTAIN A MONTH AFTER THE COMPUTER TEST A FORD DRIVER LEAVING THE TEST TRACK IN DEARBORN BRAKED TO MAKE A UTURN AND HIS BRONCO II ROLLED OVER AT LESS THAN 20 MPH ACCORDING TO COURT TESTIMONY FORD BLAMED THAT MISHAP ON LOW TIRE PRESSURE AND A CRACK IN THE ROAD BUT THE MOST DISTURBING EVIDENCE THAT THE BRONCO II MIGHT BE LESS SAFE THAN RIVAL PRODUCTS DIDN'T COME TO LIGHT FOR SEVERAL YEARS IN JUNE 1988 THE NATIONAL HIGHWAY TRANSPORTATION SAFETY ADMINISTRATION CONTACTED FORD ABOUT THE GOVERNMENT'S INVESTIGATION OF ROLLOVERS INVOLVING THE SUZUKI SAMURAI THE AGENCY HAD ZEROED IN ON FIRST EVENT ROLLOVERS THOSE IN WHICH NO COLLISION WITH ANOTHER VEHICLE OR OBJECT WAS A CONTRIBUTING CAUSE IN THIS CATEGORY THE BRONCO II LED ALL ITS COMPETITORS WITH 42 FATAL ROLLOVERS IN 1987 ALONE FORD'S OWN ANALYSIS OF FEDERAL ACCIDENT STATISTICS IN JUNE 1988 AS INTRODUCED IN THE LATER LAWSUITS PROJECTED 141 FIRST EVENT ROLLOVER DEATHS A YEAR FOR EVERY ONE MILLION BRONCO IIS ON THE ROAD A RATE HIGHER THAN THE JEEP CJS AND ALMOST THREE TIMES THAT OF THE S10 BLAZER FORD CONTENDS THAT THE BRONCO II DID BETTER IN COMPARISONS OF ALL FATAL ACCIDENTS NOT JUST THOSE THAT ISOLATED FIRSTEVENT ROLLOVERS IN FEBRUARY 1989 THE FEDERAL HIGHWAY SAFETY AGENCY LAUNCHED A RECALL INVESTIGATION OF THE BRONCO II AMONG OTHER THINGS FORD RESPONDED THAT THE REARWHEELDRIVE VERSION HAD EXPERIENCED MANY MORE ROLLOVERS THAN THE FOURWHEELDRIVE YET WAS VIRTUALLY IDENTICAL IN DESIGN THIS SUGGESTED FORD SAID THAT THE ROLLOVER RATES REFLECTED LESS ON THE VEHICLES THAN ON THE DRIVERS AND ROAD SURFACES ULTIMATELY THE AGENCY DECIDED NOT TO TAKE ACTION BECAUSE IT CONCLUDED THAT IT COULD POINT TO NO SAFETY DEFECT IN THE ABSENCE OF A COMPONENT FAILURE OR MALFUNCTION NONETHELESS IN JUNE 1989 CONSUMER REPORTS CRITICIZED THE BRONCO II'S PERFORMANCE IN EMERGENCYTURN TESTS AND PHOTOGRAPHED IT TIPPING WITH TWO WHEELS IN THE AIR AT 42 MPH WE THINK IT'S WISE TO AVOID THE BRONCO II THE MAGAZINE CAUTIONED FORD CRITICIZED THE TEST RESULTS AS SUBJECTIVE BUT BY THEN IT HAD ALREADY DECIDED TO PULL OUT OF THE LIGHT UTILITY MARKET THE SUCCESSOR TO THE BRONCO II WOULD BE A LARGER FOURDOOR VERSION MUCH LIKE A STATION WAGON CALLED THE EXPLORER WIDER AND LONGER THAN THE BRONCO II AND WITH A HIGHER STABILITY RATING THE EXPLORER WOULD BE AIMED AT OLDER BUYERS THE NEW MARKETING DEMOGRAPHICS FORD NOTED SHOULD RESULT IN A LESS AGGRESSIVE DRIVER PROFILE AND FEWER ACCIDENTS THUS FAR THE PREDICTIONS HAVE PROVED ACCURATE BUT BRONCO II LAWSUITS CONTINUE NEXT UP FOR TRIAL THE CASE OF A 17YEAROLD ST LOUIS GIRL WHO WAS RIDING IN THE BACK SEAT OF A BRONCO II THAT FLIPPED OVER AFTER THE DRIVER SWERVED TO AVOID ANOTHER CAR ACCORDING TO HER LAWYER THE BRONCO II WAS GOING 40 MPH AT THE TIME THE GIRL WHO HADN'T BEEN WEARING A SEAT BELT SUFFERED PERMANENT BRAIN DAMAGE 9301050035 930105 WHAT'S NEWS BUSINESS AND FINANCE BOEING PLANS TO TEAM WITH TWO MEMBERS OF THE RIVAL AIRBUS CONSORTIUM TO PURSUE DEVELOPMENT OF A 600SEAT SUPERJUMBO JETLINER THE EXPECTED PACT WITH DAIMLERBENZ AND BRITISH AEROSPACE COULD SHAKE UP THE WORLDWIDE INDUSTRY ALTHOUGH IT WOULDN'T OBLIGATE THE EUROPEAN CONCERNS TO PULL OUT OF AIRBUS THE BUDGETDEFICIT OUTLOOK IS GROWING WORSE BUSH WILL REPORT TOMORROW WITH THE GAP LIKELY TO EXCEED 300 BILLION IN FISCAL 1997 UNLESS THERE ARE SUBSTANTIAL CHANGES IN FEDERAL POLICY CLINTON'S ADVISERS SAY THE ADMINISTRATION IS UNDERSTATING THE PROBLEM BOND PRICES SURGED WITH THE YIELD ON THE US 30YEAR ISSUE FALLING TO 732 A THREEMONTH LOW STOCK PRICES WERE MIXED AS THE DOW JONES INDUSTRIAL AVERAGE ROSE 811 POINTS TO 330922 THE DOLLAR MOVED HIGHER DU PONT'S US CHEMICAL DIVISION PLANS TO REDUCE HEALTH BENEFITS FOR 145000 CURRENT AND FORMER EMPLOYEES THEIR FAMILIES AND SURVIVORS AS OF NEXT JANUARY RAISING THE PORTION OF HEALTH COSTS PAID BY COVERED EMPLOYEES NORTHWEST AIRLINES WILL LAY OFF 1043 FLIGHT ATTENDANTS GROUNDSERVICE EMPLOYEES AND RESERVATION SALES AGENTS OR 22 OF ITS WORK FORCE FREQUENTFLIER BENEFIT ENHANCEMENTS HAVE AGAIN BEEN MADE BY SEVERAL AIRLINES IN A BID TO SPARK DEMAND WITHOUT STARTING ANOTHER FARE WAR PORTLAND GENERAL WILL PERMANENTLY CLOSE ITS TROJAN NUCLEAR PLANT LEAVING THE UTILITY OPEN TO AS MUCH AS 350 MILLION IN ACCOUNTING CHARGES THE SURPRISE MOVE REVERSES EARLIER PLANS TO SHUTTER THE FACILITY IN 1996 SALOMON STRUCK COMPENSATION ACCORDS WITH TWO FORMER OFFICERS WHO LEFT THE COMPANY IN AUGUST 1991 AMID THE PROBE OF ITS CONDUCT IN TREASURY AUCTIONS HOWEVER AGREEMENTS COULDN'T BE REACHED WITH TWO OTHERS INCLUDING FORMER CHAIRMAN JOHN GUTFREUND MCDONNELL DOUGLAS AGREED TO SELL ITS INTERNATIONAL COMPUTER INFORMATION DIVISION THE LAST REMAINING CHUNK OF ITS ONCEHUGE INFORMATION SYSTEMS SUBSIDIARY TO A GROUP OF INSTITUTIONAL INVESTORS TERMS WEREN'T DISCLOSED TOYS R US REPORTED ROBUST US SALES FOR THE HOLIDAY SEASON BUT THE TOY RETAILER'S STOCK DROPPED 4 AMID SOME CONCERN THAT THE STRENGTHENING DOLLAR IS HURTING INTERNATIONAL SALES TEXACO HAS ENDED TALKS OVER TAKING A 25 STAKE IN THE 41 BILLION HIBERNIA OILFIELD PROJECT OFF NEWFOUNDLAND MICHAEL MILKEN ENTERED A HALFWAY HOUSE IN LOS ANGELES WHERE HE WILL SERVE OUT THE REMAINING TWO MONTHS OF HIS REDUCED PRISON SENTENCE FILENET EXPECTS TO POST A 99 MILLION LOSS FOR ITS FOURTH QUARTER AND TO DISMISS MORE THAN 10 OF ITS WORKERS WESTINGHOUSE AND GE ARE NEAR AGREEMENT ON A PRICE FOR LOSSPLAGUED WESTINGHOUSE CREDIT CORP'S LOAN PORTFOLIO BUT OTHER ISSUES STILL COULD DERAIL TALKS ABOUT THE SALE OF THE UNIT A MUNICIPALBOND ADVOCACY GROUP TO WHICH CLINTON BELONGS URGED THE PRESIDENTELECT TO EASE MUNI TAX RULES AS A WAY OF ADVANCING HIS GOAL TO REFURBISH THE NATION'S INFRASTRUCTURE TOKYO STOCK PRICES ENDED MIXED IN A HALFDAY SESSION THE NIKKEI ROSE 6913 POINTS TO CLOSE AT 1699408 NEW CONSTRUCTION SPENDING ROSE 21 IN NOVEMBER ON GAINS IN BOTH PRIVATE AND GOVERNMENT OUTLAYS THE INCREASE WHICH FOLLOWS AN 08 RISE IN OCTOBER LIFTED ANNUAL ACTIVITY TO THE HIGHEST LEVEL SINCE AUGUST 1990 STOCKS VOLUME 199680000 SHARES DOW JONES INDUSTRIALS 330922 UP 811 TRANSPORTATION 145384 UP 463 UTILITIES 22164 UP 062 BONDS LEHMAN BROTHERS TREASURY INDEX 473621 UP 3727 COMMODITIES OIL 1904 A BARREL OFF 46 CENTS DOW JONES FUTURES INDEX 12258 UP 006 SPOT INDEX 12100 OFF 029 DOLLAR 12535 YEN UP 051 16395 MARKS UP 00186 9301050034 930105 LETTERS TO THE EDITOR POSTNUCLEAR ARMY PLANS FOR THE FUTURE I READ WITH INTEREST AND DISAPPOINTMENT YOUR NOV 27 PAGEONE ARTICLE ABOUT THE US ARMY WITH INTEREST BECAUSE OF YOUR CONCLUSIONS ABOUT THE ARMY'S ABILITY TO ADAPT TO CHANGE WITH DISAPPOINTMENT BECAUSE MUCH OF THE INFORMATION ATTRIBUTED TO ME WAS NEARLY ONE YEAR OLD AND SELECTIVELY PIECED TOGETHER WITH INFORMATION FROM OTHER SOURCES GIVING YOUR READERS A MISLEADING PICTURE OF OUR EFFORTS I EXPECTED BETTER OF YOU I WAS INTERVIEWED TWICE BY YOUR REPORTER THE LAST TIME MORE THAN EIGHT MONTHS AGO AT FORT JACKSON SC WHAT YOU AND MORE IMPORTANTLY YOUR READERS WHOM YOU'VE MISLEAD WITH THIS OUTDATED MATERIAL NEED TO KNOW IS WE HAVE DONE OUR HOMEWORK AND ARE ADAPTING SIMULTANEOUSLY OUR OPERATIONAL UNITS AS PART OF A JOINT TEAM CONTINUE TO ACCOMPLISH IMPORTANT MISSIONS SUCH AS HURRICANE ANDREW AND INIKI RELIEF TASK FORCE LOS ANGELES COUNTERNARCOTICS PEACEKEEPING AND NATION BUILDING THE ARMY IS DOING THAT WHILE DOWNSIZING ADJUSTING RESOURCE LEVELS AND REDEPLOYING FORCES AND EQUIPMENT FROM EUROPE WE CAN TAKE NO TIMEOUTS FROM TRAINING AND MISSION READINESS WHILE ADAPTING TO CHANGING OPERATIONAL CONDITIONS THE AMERICAN PEOPLE EXPECT NO LESS OF THEIR ARMY I AM PROUD TO BE IN ITS RANKS I REGRET THAT YOUR ARTICLE WAS SO OUT OF DATE AND YOUR READERS SO POORLY INFORMED IT WAS YOUR NEWSPAPER THAT STOOD STILL NOT THE ARMY YOU FAILED TO KEEP UP WITH OUR CHANGE AND YOU MISSED A LOT TO TELL YOUR READERS ABOUT THEIR ARMY YOUR HATCHET JOB ON THE ARMY AND THE PACE AT WHICH IT IS PREPARING FOR THE FUTURE WAS A POOR SERVICE TO YOUR READERS MOST AMAZING IS THE WAY YOU SWALLOWED THE AIR FORCE'S BLATANT GRAB FOR OTHER SERVICES' ROLES AND MISSIONS WEAPONS PROGRAMS AND BUDGETS DID IT EVER OCCUR TO YOU THAT THE FLYBOYS IN BLUE ARE SO ACQUISITIVE BECAUSE MANY OF THEIR TRADITIONAL ROLES AND RAISONS D'ETRE HAVE BEEN RENDERED OBSOLETE BY THE END OF THE COLD WAR EVEN UNDER THE IDEAL CONDITIONS OF THE GULF WAR THE ABILITY OF AIR POWER ALONE TO WIN A WAR MUST REMAIN IN GRAVE DOUBT WITHOUT THE ARMORED THRUST HEADED BY GEN FREDERICK FRANKS THE TATTERED REMNANTS OF SADDAM HUSSEIN'S ARMY MIGHT STILL BE SITTING IN THEIR DESERT DUGOUTS TODAY THE ARMY HAS BEEN THINKING ABOUT ITS ROLE IN THE POSTSOVIET ERA FOR A WHILE NOW ALMOST SINCE MIKHAIL GORBACHEV HINTED THAT THERE MIGHT BE SUCH AN ERA PERHAPS THE POSTSOVIET ERA COULD BETTER BE CALLED THE POSTNUCLEAR ERA FOR THE PAST FIVE DECADES US STRATEGIC THINKING HAS BEEN ADDLED BY TERROR OF ATOMIC WEAPONS AND NOW FINDS ITSELF RETURNING TO BALANCE WITH THE REEMERGENCE OF CONVENTIONAL FORCE ISSUES AND POWER PROJECTION IF AMERICA'S DEFINITION OF WHAT SOLDIERING IS ALL ABOUT IS CHANGING SO QUICKLY THAT IT AGAIN FORGETS THE NEED TO LIVE AND FIGHT DOWN IN THE DIRT AND THE BUSHES IT WILL FIND ITSELF FORCED TO LEARN THE TOUGH LESSONS AGAIN AND THE PRICE WILL BE IN BLOOD BUREAUCRATIC SUCCESS ISN'T THE SAME THING AS BATTLEFIELD SUCCESS ARMY GENERALS MAY NOT BE AS DASHING AS THE WHITESCARF CROWD BUT THEY'VE SEEN THE ELEPHANT AT CLOSE RANGE AND HAVE LIVED TO TELL THE TALE WE IGNORE THEIR WISDOM AT OUR OWN PERIL 9301050033 930105 SOMALIA AND THE SPOILS OF POWER BY ALEXANDRA TUTTLE BARDERA SOMALIA AS GEN MOHAMMED FARAH AIDID AND HIS CHIEF RIVAL INTERIM PRESIDENT ALI MAHDI MOHAMED ATTENDED UNSPONSORED TALKS IN ADDIS ABABA ETHIOPIA YESTERDAY AMERICANS COULD BE PROUD OF THEIR HANDIWORK IN SOMALIA SEVERAL MONTHS OF MUTUAL SHELLING AND SHOOTING BY THE TWO FACTIONS BACK IN 1991 CREATED THE NOMAN'SLAND OF RUBBLE AND BURNEDOUT BUILDINGS THAT MOGADISHU'S LEADERS HAVE NOW PROMISED TO DISMANTLE SINCE USLED TROOPS LANDED IN SOMALIA'S CAPITAL THE AMERICANBACKED INITIATIVE HAS KEPT UP THE MOMENTUM OF PEACE TALKS ALTHOUGH SPORADIC VIOLENCE CONTINUES MAJOR FIGHTING HAS STOPPED IN MOGADISHU THE UNITED SOMALIA CONGRESS'S USC TWO RIVAL FACTIONS RESPONSIBLE FOR THE WORST OF THE FIGHTING HAVE PROMISED TO WITHDRAW THEIR HEAVY WEAPONRY FROM THE CITY YET IT ALL SEEMS TOO GOOD TO BE TRUE CERTAINLY TOO GOOD TO LAST OTHER CEASEFIRES HAVE BEEN BROKERED AND JUST AS EASILY BROKEN ACCORDING TO REUTERS AN ALLIANCE OF FOUR GROUPS BOYCOTTED THE OPENING SESSION OF THE ADDIS ABABA TALKS TO PROTEST SECRETARY GENERAL BOUTROS BOUTROSGHALI'S FAILURE TO INVITE THREE OTHER GROUPS THE ALLIANCE DOMINATED BY THE DAROD CLANS IN SOUTHERN SOMALIA LATER SAID IT WOULD TAKE PART AND UN OFFICIALS SAID ONE OF THE EXTRA GROUPS COULD COME PART OF THE PROBLEM IS THE SHEER VARIETY OF POLITICAL FACTIONS AVAILABLE TO THE WARRING SOMALIS KEEPING TRACK OF THE CAST OF CHARACTERS TAKES SOME DOING BOTH WARLORDS GEN AIDID AND MR ALI MAHDI BELONG TO THE SAME CLAN THE HAWIYE AND THE SAME POLITICAL PARTY THE USC THEY WERE ONCE ALLIED AGAINST MOHAMMED SIAD BARRE'S REGIME BUT ALL THAT UNITES THEM PALES BESIDE THAT WHICH DIVIDES THEM THE SPOILS OF POWER ON THE OTHER HAND COL OMAR JESS THE WARLORD OF THE SOUTHERN COASTAL TOWN OF KISMAYU AND ONCE A SWORN ENEMY OF GEN AIDID IS NOW THE GENERAL'S TRUSTED ALLY HE BELONGS TO THE SAME CLAN THE DAROD AS HIS ARCHENEMY GEN MOHAMMED SIAD BARRE MORGAN WHO RECENTLY WRESTED CONTROL OF BARDERA FROM GEN AIDID GEN MORGAN INCIDENTALLY HAPPENS TO BE MOHAMMED SIAD BARRE'S SONINLAW IF THAT SOUNDS COMPLICATED TRY KEEPING THE SHIFTING ALLIANCES BETWEEN THE POLITICAL FACTIONS STRAIGHT THERE ARE AT LEAST SEVEN FACTIONS WITHIN THE USC THE LARGEST POLITICAL GROUP ALL OF WHICH PURSUE THEIR OWN AGENDAS AND ALLIANCES THERE ARE 48 FACTIONS WITHIN THE HAWIYE CLAN ALONE BUT THERE ARE ALSO A VAST NUMBER OF OTHER ABBREVIATIONS ON THE SOMALI POLITICAL SCENE MOST OF WHICH CONTAIN THE LETTER S FOR SOMALIA THE DFSS SPM SNA SDM USF SDA SNF AND SNM NOT TO MENTION PARTIES THAT MAY OR MAY NOT BE DEFUNCT DEPENDING ON WHO'S KEEPING TRACK LIKE ALL THOSE RESPONSIBLE FOR THE TERROR AND ANARCHY OF THE PAST YEARS GEN AHMED WARSAME TALKS DUE PROCESS AND COOPERATION FROM HIS BARDERA STRONGHOLD A SERIES OF PREFABRICATED BUILDINGS ON THE OUTSKIRTS OF TOWN GEN WARSAME WHO WITH GEN MORGAN IS RUNNING BARDERA AND THE SOUTHERN PART OF THE COUNTRY FOR THE SOMALI NATIONAL FRONTSOMALI PATRIOTIC MOVEMENT SNFSPM ALLIANCE OF THE DAROD CLAN WELCOMES THE TROOPS AND PROFESSES A SUDDEN INTEREST IN DEMOCRACY ALTHOUGH HE IS WILLING TO LET FOREIGN TROOPS TAKE IT ONLY SO FAR THE AMERICANS CANNOT DECIDE FOR THE SOMALI PEOPLE THEY MUST DECIDE THEMSELVES AND WE WILL ABIDE BY THE DECISIONS OF THE PEOPLE EVEN IF THE PEOPLE DECIDE FOR HIS ARCHENEMY GEN AIDID THIS IS NOT A POSSIBILITY ANSWERS GEN WARSAME SOMEONE OF COURSE WILL HAVE TO BE CHOSEN TO LEAD THE COUNTRY AT LEAST IN THE INTERIM BUT THERE IS NO TRADITION OF POLITICAL DIALOGUE OR BROKERING TO FALL BACK ON NO PROCESS FOR WORKING OUT COMPROMISES AND DEALS POLITICS IN SOMALIA IS MERELY A MEANS OF SURVIVAL ALL THIS MEANS THAT NEGOTIATORS MUST CREATE THE POLITICAL DISCOURSE FOR WORKING OUT A PEACE FILLING THE VOID IN IDEAS CREATED BY THE EXODUS OF POLITICAL TALENT FROM SOMALIA EVERY BOY CAN TELL YOU WHAT FACTION HE BELONGS TO AND WHICH ARMED THUG HE SUPPORTS BUT HE HAS NO POLITICAL REASONS FOR DOING SO NO PARTY HAS A POLITICAL AGENDA OR AN IDEOLOGY NO PARTY LEADER EVEN PAYS LIP SERVICE TO POLICIES REFORM OR THE ISSUES CONFRONTING THIS DESPERATE COUNTRY MOREOVER WHAT AGENDAS THEY HAVE COOKED UP HAVE LITTLE IN COMMON WITH THE UNITED NATIONS' PLANS FOR THE COUNTRY COOPERATION WITH THE US TROOPS NOTWITHSTANDING EVERY CLAN HAS BEEN SCRAMBLING TO MAXIMIZE ITS ADVANTAGES BEFORE THE TROOPS PULL INTO TOWN AND FIX THE STATUS QUO GEN WARSAME AND HIS MEN ARE CONCERNED BY REPUTED MASSACRES OF DARODS IN KISMAYU WHICH THEY BLAME ON ETHNIC CLEANSING BY COL JESS AND GEN AIDID THEY NEGLECT TO ADD THAT THE KILLINGS WERE A RIPOSTE TO GEN MORGAN'S OWN MASSACRE OF 150 OF GEN JESS'S FIGHTERS IN KISMAYU JUST A FEW DAYS BEFORE ALL THE POLITICAL MANEUVERING AND THE OUTBREAK OF CLAN VIOLENCE POINT TO WHAT EVERY WARLORD IN SOMALIA WANTS FROM THE FOREIGN TROOPS POLITICAL LEGITIMACY GEN AIDID AND MR ALI MAHDI WANT TO CONSOLIDATE THEIR CONTROL OVER THE COASTAL AREAS COL JESS AND GEN MORGAN WIPE EACH OTHER'S BACKERS OUT WITH A VIEW TO STRENGTHENING A TENUOUS HOLD OVER KISMAYU MEANWHILE GENS MORGAN AND WARSAME ARE SITTING PRETTY IN BARDERA AND THE SURROUNDING REGIONS THAT BORDER KENYA THE PEACE INITIATIVE PLAYS ALONG WITH THESE EXISTING POWER STRUCTURES BECAUSE SOME ORDER HOWEVER CORRUPT IS BETTER THAN NONE BUT IF THE CLANS LOOK TO BE THE ONLY ANSWER TO THE ANARCHY THEY ARE ALSO PART OF THE PROBLEM EVEN IN AREAS WHERE FOREIGN TROOPS HAVE IMPOSED SOME ORDER CLANS ROUTINELY FIGHT EACH OTHER FOR THE FOOD THE US MARINES HAVE LEFT BEHIND YET CLAN FACTIONALISM IS ONLY PART OF THE PROBLEM IT CANNOT EXPLAIN WHY MESSRS AIDID AND ALI MAHDI WHO ARE FROM THE HAWIYE CLAN FIGHT ONE ANOTHER WHILE GEN AIDID SUPPORTS GEN JESS WHO IS FROM THE SAME DAROD CLAN AS HIS OPPONENT GEN MORGAN IN MANY CASES CLAN RIVALRY IS MITIGATED BY INTERMARRIAGE IN SOMALIA THE CLAN IDENTIFICATIONS ARE A PRETEXT FOR A MORE SINISTER FORM OF CONTROL IT'S THE TOUGH AND THE VICIOUS VS THE PEACEFUL AND THE WEAK SAYS IBRAHIM BURSALID A YOUNG SOMALI WHO FOUNDED SOMA ACTION A HOMEGROWN RELIEF ORGANIZATION TWO YEARS AGO WHEN THE CIVIL WAR BROKE OUT THE CLANS ARE JUST A MEANS TO RALLY YOUNG IMPRESSIONABLE SOMALIS AROUND A CAUSE WHICH SUPPORTS NOTHING MORE THAN EACH LEADER'S OWN AMBITION THE FOREIGN TROOPS WILL BE IN SOMALIA A LONG TIME IF THEY TRY TO CREATE SOME ORDER IN A SOCIETY THAT HAS NO POLITICAL TRADITION ON WHICH TO FOUND A GOVERNMENT THE UN INITIATIVE HOPES TO FOSTER A COALITION GOVERNMENT OF EXISTING CLANS AND FACTIONS VERY MUCH LIKE THE MULTITUDE OF GOVERNMENTS THAT HAVE FAILED TO GOVERN SOMALIA OVER THE PAST 30 YEARS IT IS HARD NOT TO BE PESSIMISTIC ADMITS MR BURSALID WITH A WRY CHUCKLE LIKE EVERYONE ELSE I WORRY THAT AS SOON AS THE AMERICANS LEAVE IT WILL BE BACK TO MORE OF THE SAME BECAUSE MORE OF THE SAME IS ALL WE HAVE EVER KNOWN THE GREATEST CHALLENGE FOR THE PEACEMAKERS LIES WITH THE LEADERS THEY HAVE TO DEAL WITH WHO HAVE LOST TOUCH WITH THE PEOPLE THEY HAVE TERRORIZED AND STARVED FOR SO LONG COL BARE ADAN SHIRE WHO RUNS DAYTODAY OPERATIONS IN BARDERA GLANCES AT A TEENAGE BOY STRAPPED ACROSS HIS MOTHER'S BACK THE YOUNG MAN IS ALMOST FIVE FEET TALL BUT SO FRAIL HE CANNOT STAND WE DO NOT STEAL FROM PEOPLE LIKE THESE THEY ARE OUR OWN LIKE THE COLONEL THE BOY IS A PURE DAROD BUT AS A VICTIM OF THE WAR THE COLONEL PROFITS FROM HE MAY AS WELL BE THE ENEMY MISS TUTTLE IS A PARISBASED WRITER 9301050032 930105 BUSINESS BRIEF RISER FOODS INC FIRM TO CLOSE FIVE STORES AND PLANS TO TAKE A CHARGE RISER FOODS INC SAID IT WILL CLOSE ITS FIVE REMAINING CARL'S SUPERMARKETS AND TAKE A CHARGE OF 18 MILLION TO 29 MILLION RISER SAID IN BEDFORD HEIGHTS OHIO THAT THE FIVE STORES WHICH EMPLOY 260 FULLTIME AND PARTTIME WORKERS WERE UNPROFITABLE RISER WHICH RECEIVED 10 CARL'S STORES AS PART OF ITS 1988 ACQUISITION OF FISHER FOODS SUPERMARKETS HAD ALREADY CONVERTED FOUR OTHER CARL'S STORES TO A DIFFERENT FORMAT AND CLOSED A FIFTH AFTER THE CLOSINGS RISER WILL OPERATE 46 SUPERMARKETS IN NORTHEASTERN OHIO MOSTLY RINIREGO STOPNSHOP STORES THE CHARGE EQUIVALENT TO BETWEEN 22 AND 37 CENTS A SHARE WILL BE TAKEN IN THE SUPERMARKET CHAIN'S SECOND QUARTER ENDED DEC 31 1992 OR ITS THIRD QUARTER ENDING MARCH 31 1993 9301050031 930105 HEARD ON THE STREET SHORTSELLERS WERE STUNG BY ANOTHER BAD YEAR IN '92 BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRACTICALLY NOBODY FEELS ANY SYMPATHY FOR WALL STREET SHORTSELLERS THOSE NAYSAYERS WHO MAKE MONEY WHEN STOCKS GO DOWN RATHER THAN UP BUT HOW ABOUT JUST HALF A TEARDROP AFTER POSTING PROFITS THROUGHOUT MOST OF 1992 PROFESSIONAL SHORTSELLERS UNEXPECTEDLY WOUND UP WITH THEIR SECOND CONSECUTIVE YEAR OF INVESTMENT LOSSES ACCORDING TO PRELIMINARY TALLIES APPARENTLY THE LATEYEAR RALLY IN THE NASDAQ OVERTHECOUNTER MARKET ERASED WHAT HAD BEEN A PROFITABLE YEAR FOR THESE BEARISH INVESTORS OR SHORTS NOT ONLY DID WE ALL HAVE ANOTHER LOSING YEAR WE NOW HAVE HAD TWO YEARS IN A ROW WHICH IS DISCOURAGING SAYS MICHAEL MURPHY WHO EDITS A SHORTS' TIP SHEET OVERPRICED STOCK SERVICE OUT OF HALF MOON BAY CALIF IT LOOKED PRETTY GOOD THERE UNTIL THE LAST THREE MONTHS LIKE OTHER SHORTS HOWEVER MR MURPHY PREDICTS A GOOD YEAR FOR HIS KIND IN 1993 THAT REMAINS TO BE SEEN AT THE END OF SEPTEMBER INVESTORS IN SHORTSELLING PARTNERSHIPS WERE STARING AT 14 OR 15 GAINS AS THEY FOUND SHAKY STOCKS TO TARGET IN THE DULL STOCK MARKET BUT MOST OF THOSE GAINS EVAPORATED THE SHORTS ENDED 1992 WITH AVERAGE LOSSES OF 1 TO 2 ESTIMATES MICHAEL L LONG GENERAL PARTNER AT ROCKBRIDGE PARTNERS IN CHARLOTTE NC WHO TRACKS SHORTSELLERS' PERFORMANCES IT WAS KIND OF A FRUSTRATING YEAR FOR THE SHORTS ADDS HARRY STRUNK AN INVESTMENT CONSULTANT IN PALM BEACH FLA SOME INDIVIDUAL SHORTSELLERS DID WELL HE SAYS BUT FOR THE MOST PART THEY WERE FLAT TO DOWN SHORTSELLERS SELL BORROWED SHARES BETTING THAT THEY'LL BE ABLE TO REPLACE THE BORROWED STOCK LATER AT LOWER PRICES WALL STREET TRADERS SAY THE BATTERED SHORTS INCLUDE THE BIGGEST OF THEM ALL NEW YORK'S JAMES CHANOS OF KYNIKOS ASSOCIATES WITH 400 MILLION OR SO UNDER MANAGEMENT WHOSE 1992 INVESTMENT RESULT IS BELIEVED TO HAVE BEEN A LOSS OF AROUND 15 AND THE ONCEMIGHTY FESHBACH BROTHERS OF CALIFORNIA THOUGHT TO BE DOWN A SIMILAR AMOUNT NEITHER WOULD COMMENT YESTERDAY AMONG THE STOCKS THAT BIT THE SHORTS BY NOT DROPPING AS THEY'D HOPED WERE STUBBORN CITICORP UP 115 IN 1992 IVAX CISCO SYSTEMS CABLETRON SYSTEMS SYNOPTICS COMMUNICATIONS AND BANKER MIDLANTIC SOME SHORTS EVEN ACCUSE WALL STREET DEALERS OF MARKING UP PRICES IN SMALL ISSUES LATE THURSDAY TO BOOST YEAREND REPORTED PRICES AND RUB IT IN TO THE SHORTS EVEN MORE THE SHORTSELLERS' YEAR WAS BROKEN INTO THREE PARTS SAYS MR LONG THE FIRST PART OF THE YEAR THEY LOST MONEY FASTER THAN THE OVERALL AVERAGES THEY SPENT THE NEXT SEVEN TO EIGHT MONTHS MAKING MONEY ON A CONSISTENT BASIS AND IN OCTOBER NOVEMBER AND DECEMBER THEY EFFECTIVELY GAVE BACK MOST OF WHAT THEY GAINED ONE REASON GROUSE THE SHORTS THAT THEY DIDN'T DO BETTER BY YEAR'S END IS THAT THE STOCK MARKET WAS PROPPED ARTIFICIALLY HIGH ALL YEAR PARTLY BY THE TORRENT OF CASH PUMPED INTO IT BY INVESTORS WHO WEREN'T CHOOSY THERE IS A REAL LACK OF OTHER INVESTMENTS BESIDES STOCKS TO BUY WITH INTEREST RATES SO LOW SAYS MR LONG THE RESULT THERE'S SO MUCH MONEY GOING INTO THE MARKET THAT ISN'T SOPHISTICATED MONEY ONE OF THE SHORTS WHO HAS BUCKED THE TREND BY POSTING BIG GAINS FOR 1992 IS ROBERT HOLMES OF GILFORD PARTNERS IN CHICAGO WITH INVESTMENT GAINS OF AS MUCH AS 40 ACCORDING TO TRADERS SOME OF THOSE GAINS MIGHT HAVE COME FROM OPTIONS TRADING RATHER THAN PURE SHORTING STILL MR HOLMES IS AMONG THE FEW SHORTS TO TOAST '92 WITH A SMILE HE WON'T ADMIT TO BEING CHEERY THOUGH SHORTS HAVE LEARNED NOT TO CROW TOO MUCH LEST EVERYONE GANG UP ON THEM AND THE STOCKS THEY'RE SHORTING WE TRY TO KEEP OUR NOSE TO THE GRINDSTONE HE SAYS REFUSING TO CONFIRM HIS PERFORMANCE NUMBERS BUT MR HOLMES ISN'T SHY ABOUT THIS NO 1 SHORT PICK FOR 1993 MCDONNELL DOUGLAS THE STOCK OF THE BIG DEFENSE CONTRACTOR DESPITE A 34 PLUNGE IN 1992 IS STILL RIPE FOR DEVASTATION ONE OF THE GREAT ALLTIME SHORTS I'VE EVER SEEN HE SAYS IT'S GOT ALL THE CLASSIC SIGNS A DECLINING BUSINESS A DISASTROUS BALANCE SHEET LEVERAGED TO THE HILT AND IT SEEMINGLY CAN'T BORROW MUCH MORE NATURALLY MR HOLMES ALSO TAKES TIME TO MENTION MTC ELECTRONIC TECHNOLOGIES AGAIN THAT'S THE SMALL CANADIAN STOCK THAT GILFORD HAS GONE AFTER WITH GUSTO TO THE POINT OF WRITING TO THE SECURITIES AND EXCHANGE COMMISSION AND QUESTIONING WHETHER MTC REALLY HAS A CELLULARTELEPHONE CONTRACT WITH CHINA AS IT INSISTS IT DOES THE STOCK DECLINED 1 3/4 TO 20 YESTERDAY A BIGGER STOCK THAT MR HOLMES IS SHORTING IS THE INSURER TRAVELERS HOW ABOUT THE RECENT INVESTMENT IN THE COMPANY BY SAVVY WALL STREET FINANCIER SANFORD WEILL I DON'T THINK HE CAN SINGLEHANDEDLY TURN THE REAL ESTATE MARKET AROUND SAYS MR HOLMES AMONG THE OTHER NEW YORK STOCK EXCHANGE STOCKS THE SHORTS ARE POKING AT ARE THE ALREADY BATTERED PS GROUP WITH INTERESTS IN AIRCRAFT LEASING AND FUEL DISTRIBUTION AND THE TIME MANAGEMENT CONSULTANT FRANKLIN QUEST A HIGHFLIER AFTER ITS JUNE INITIAL OFFERING RESTAURANT STOCKS AND BIOTECHNOLOGY COMPANIES SUCH AS IVAX ARE ALSO ON THE SHORTS' PLATTERS LOOK FOR ACTIVITY IN LONE STAR STEAKHOUSE & SALOON OUTBACK STEAKHOUSE CHECKER'S DRIVEIN RESTAURANTS AND QUANTUM RESTAURANT GROUP THE SHORTS ARE INSISTING THAT 1993 WILL BE A MUCH BETTER YEAR AS THEY TARGET THE MARKET'S OVERVALUED AND OVERHYPED STOCKS TO FEAST ON WE DON'T BELIEVE THIS RECESSION IS OVER YET WARNS MR MURPHY WHO PREDICTS A DECLINE OF AS MUCH AS 33 IN THE DOW JONES INDUSTRIAL AVERAGE THIS YEAR TO 2200 OR 2400 DESPITE THE DOWN TIMES IN 1991 AND 1992 SHORTSELLERS AREN'T ABANDONING THE BUSINESS IN DROVES ON THE CONTRARY THERE ARE EIGHT NEW PARTNERSHIPS READY TO START UP IN JANUARY PUSHING THE OVERALL NUMBER TO ABOUT 40 MANAGING 2 BILLION OR SO SOME SHORTS PREDICT THAT THE MARKET WILL BE READY TO TUMBLE ONCE INVESTORS GET OVER THE EUPHORIA OF PRESIDENTELECT CLINTON'S INAUGURATION AS WELL AS THE MARKETBOOSTING JANUARY EFFECT IN WHICH MONEY FLOWS STRONGLY INTO SMALL STOCKS ONCE THOSE PARTIES ARE OVER THE SHORTS FIGURE THEY MAY BE READY TO TURN THE CORNER AFTER THEIR TWO DISCOURAGING YEARS 9301050030 930105 CIR LOWERS STAKE IN OLIVETTI MILAN COMPAGNIE INDUSTRIALE RIUNITE SPA THE MAJOR HOLDING COMPANY OF ITALIAN FINANCIER CARLO DE BENEDETTI SAID ITS STAKE IN COMPUTER MAKER OLIVETTI'S ORDINARY SHARE CAPITAL HAS BEEN REDUCED TO 3821 FROM 41 ITALIAN WIRE SERVICE ANSA QUOTED A CIR SPOKESMAN AS SAYING THAT THE REDUCTION OF ITS OLIVETTI STAKE IN MIDDECEMBER WAS DUE TO NORMAL MARKET TRADING DEEMED ADVISABLE BY THE CONDITIONS OF THE MARKET 9301050029 930105 REVIEW & OUTLOOK EDITORIAL ASIDES NO MEAL TICKET ON NEW YEAR'S EVE THE CALIFORNIA SUPREME COURT UPHELD AN 8600 PENALTY AGAINST A FRIVOLOUS LITIGANT WHO SUED A RESTAURANT CHAIN FOR AGE DISCRIMINATION BECAUSE IT OFFERED DISCOUNTS TO SENIORS BACK IN 1984 THE LITIGIOUS ANDREW ROSS EXLER FORCED DISNEYLAND INTO ALLOWING HIM TO DANCE THERE WITH A MALE PARTNER HIS LATEST BID DESPITE SUPPORT FROM THE ACLU MAY LEAVE HIM SWALLOWING COSTS BUT MR EXLER SAYS HE'S WORKING ON ANOTHER ACTION ANYWAY ONE HOPES THERE ARE ENOUGH REASONABLE JURISTS TO OUTLAST HIM 9301050028 930105 SCHOOLROOM SHUFFLE TRAILING IN EDUCATION FOR YEARS KENTUCKY TRIES RADICAL REFORMS GRADES 1 THROUGH 3 BECOME ONE CLASS WITH NO TEXTS DESKS OR REPORT CARDS' SOME PARENTS PRINCIPALS BALK BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL LEXINGTON KY MOST STUDENTS AT PICADOME ELEMENTARY SCHOOL HERE DON'T HAVE DESKS DON'T USE TEXTBOOKS AND DON'T GET GRADES SIXYEAROLDS KNOWN MOST PLACES AS FIRST GRADERS WORK IN A CLASS WITH SEVEN AND EIGHTYEAROLDS TEACHERS WORK IN TEAMS USING CHILDREN'S LITERATURE TO TEACH SPELLING READING AND WRITING FOR MATH AND SCIENCE STUDENTS ARE TAUGHT TO ANALYZE INSTEAD OF MEMORIZE WE'VE TURNED EDUCATION TOPSYTURVY SAYS TEACHER BEVERLY DEAN GAZING AROUND HER CLASSROOM AT CHILDREN STUDYING ON PILLOWS A COUCH AND A ROCKING CHAIR INDEED KENTUCKY HAS BECOME A GIANT LABORATORY FOR SCHOOL REFORM WHILE MANY SCHOOL DISTRICTS ACROSS THE NATION HAVE DABBLED WITH CHANGES PUBLIC SCHOOLS IN KENTUCKY TRADITIONALLY AMONG THE WORST IN THE NATION THREE YEARS AGO EMBARKED ON ONE OF THE BROADEST REVAMPINGS OF EDUCATION EVER WE HAVE REDEFINED THE BASICS AND CHALLENGED EVERY ASSUMPTION YOU HAVE ABOUT LEARNING SAYS FAYE KING PRINCIPAL OF STANTON ELEMENTARY SCHOOL IN EASTERN KENTUCKY IT'S RADICAL AND IT'S COMPREHENSIVE BUT WE CAN'T DO ANY WORSE SO WHY NOT GO FOR THE BEST WHILE IT'S FAR TOO SOON TO GIVE THE CHANGES A FINAL GRADE MANY SCHOOLS HAVEN'T FULLY ADOPTED THEM EDUCATION EXPERTS SAY THEY JUST MIGHT WORK MANY TEACHERS PARENTS AND ADMINISTRATORS SAY THE CHANGES HAVE GREATLY IMPROVED READING WRITING AND PROBLEMSOLVING SKILLS THIS IS REALLY GOING TO BENEFIT KENTUCKY SAYS JAMES RATHS A UNIVERSITY OF DELAWARE EDUCATION PROFESSOR WHO HAS STUDIED THE CHANGES WITH OTHER EDUCATORS KIDS WERE EXCITED ABOUT LEARNING AND PARENTS WERE JUST ENTHRALLED ABOUT EVERYTHING THE KIDS KNEW IT WAS THRILLING TO SEE BUT NOT EVERYONE IS CONVINCED STANDARDIZED TEST SCORES WHILE HIGHER IN SOME CASES HAVE ACTUALLY DECLINED IN OTHERS ABANDONING TRADITIONAL TEACHING WORRIES SOME PARENTS WHO FEAR THEIR CHILDREN WON'T DO AS WELL ON COLLEGE ENTRANCE EXAMS ARE THEY GETTING EVERYTHING THEY ACTUALLY NEED WHO KNOWS WE WON'T KNOW THAT FOR FIVE TO 10 YEARS SAYS PAMELA DRAKE A STANTON PARENT IN SOME CASES PUBLIC SCHOOLS THEMSELVES ARE RESISTING CHANGE LONGFELLOW ELEMENTARY CENTER IN RURAL MAYFIELD KY HAS POSTPONED COMBINING ITS KINDERGARTEN THROUGH THIRD GRADES WHILE IT PLEADS WITH STATE OFFICIALS NOT TO FORCE IT TO DO SO NEXT YEAR IT'S ALMOST HUMANLY IMPOSSIBLE TO TEACH WHEN YOU PUT SO MANY AGE AND ABILITY LEVELS IN ONE CLASSROOM SAYS PRINCIPAL ELSIE JONES SHE ADDS THAT WITHOUT GRADES PARENTS WON'T KNOW AT WHAT LEVEL THEIR CHILDREN ARE PERFORMING AND SHOULD THE STUDENTS MOVE AWAY THEIR NEW SCHOOLS MAY HAVE DIFFICULTY PLACING THEM IN THE APPROPRIATE GRADE THE CHANGES WERE SPAWNED BY A 1989 STATE SUPREME COURT RULING THAT KENTUCKY'S SYSTEM OF FUNDING PUBLIC SCHOOLS WAS UNEQUAL AND HENCE UNCONSTITUTIONAL SIMILAR COURT RULINGS IN NEW JERSEY TEXAS MINNESOTA AND SOME OTHER STATES HAVE ALSO ORDERED THAT SCHOOL FUNDING METHODS BE CHANGED TO BALANCE PERPUPIL SPENDING IN KENTUCKY REFORMMINDED LEGISLATORS USED THE RULING TO FORCE THROUGH CHANGES IN THE ENTIRE EDUCATION SYSTEM THE LEGISLATURE RAISED STATE SPENDING ON SCHOOLS TO 28 BILLION THIS SCHOOL YEAR COMPARED WITH 13 BILLION FIVE YEARS AGO PERCHILD SPENDING WHILE STILL ONLY 39TH IN THE NATION ROSE 21 TO ABOUT 4600 LAST YEAR FROM 3793 IN 1990 BUT HIGHER SPENDING WAS ONLY PART OF IT THE LEGISLATURE ALSO PASSED A LAW TO ADDRESS THE MYRIAD SOCIAL AND ECONOMIC PROBLEMS THAT LOWER STUDENT ACHIEVEMENT IN A KIND OF STATEWIDE HEAD START PROGRAM KENTUCKY ORDERED PUBLIC SCHOOLS TO OFFER MORNING CLASSES FOR FINANCIALLY NEEDY PRESCHOOLERS AND AFTERNOON CHILD CARE AS WELL IN ADDITION IT MANDATED BEFORE AND AFTERSCHOOL TUTORING FOR FAILING STUDENTS RECOGNIZING THAT PROBLEMS AT HOME CAN HURT A CHILD'S PERFORMANCE IN SCHOOL THE LAW ALSO CREATED CENTERS AT SCHOOLS TO PROVIDE STUDENTS AND THEIR FAMILIES WITH CRISIS INTERVENTION AND HEALTHCARE SERVICES THE CENTERS OFFER COUNSELING ON NUTRITION PARENTING SKILLS AND SUBSTANCE ABUSE FIGURING THE BEST WAY TO CHANGE THINGS IS TO CHANGE THE PEOPLE IN CHARGE THE LEGISLATURE CREATED PARENTTEACHER COUNCILS AT EVERY SCHOOL TO TAKE OVER MUCH OF THE POWER WIELDED BY LOCAL SCHOOL BOARDS THE COUNCILS NOW CONTROL HALF OF THEIR SCHOOLS' BUDGETS AND HELP DECIDE CURRICULA BASED ON STATE GUIDELINES THE PACE OF CHANGE HAS VARIED AND SOME STUDENTS HAVEN'T BEEN AFFECTED AS MUCH AS OTHERS FEWER CHANGES WERE MANDATED FOR STUDENTS IN GRADES FOUR THROUGH 12 CHILDREN WHO ARE NINE AND OLDER ATTEND CLASS WITH OTHERS THEIR AGE SIT AT DESKS AND ARE TESTED AND GRADED AS THEY WERE IN THE PAST THEY LEARN MUCH OF THE SAME MATERIAL ALTHOUGH TEACHERS SOMETIMES LINK EDUCATIONAL THEMES SO STUDENTS CAN SEE HOW SUBJECTS RELATE DATA GATHERED FROM SCIENCE EXPERIMENTS FOR EXAMPLE MIGHT BE USED IN MATH CLASS IT IS IN THE LOWER GRADES THAT REFORM HAS BEEN MOST RADICAL WHILE EACH SCHOOL IS ALLOWED TO DEVELOP ITS OWN CURRICULUM SO LONG AS IT OFFERS A COMPREHENSIVE EDUCATION THE STATE HAS REQUIRED SOME KEY CHANGES KEEPING DESKS IN THE CLASSROOM AND TESTING STUDENTS ARE UP TO INDIVIDUAL SCHOOLS FOR EXAMPLE BUT ALL SCHOOLS MUST MIX FIVE TO EIGHTYEAROLDS IN THE SAME CLASSES AND ELIMINATE TRADITIONAL LETTER GRADES FOR THESE STUDENTS INSTEAD GIVING PROGRESS REPORTS SHOWING WHETHER THEY ARE AT A BEGINNING DEVELOPING OR INDEPENDENT LEVEL IN VARIOUS AREAS OF KNOWLEDGE AND PERSONAL DEVELOPMENT FEW HAVE EMBRACED THE REFORMS WITH THE FERVOR OF PICADOME ELEMENTARY IN A MIDDLECLASS NEIGHBORHOOD NEAR DOWNTOWN LEXINGTON ALTHOUGH ITS FOURTH AND FIFTH GRADES REMAIN TRADITIONAL CHANGES IN WHAT WERE THE LOWER GRADES HAVE TRANSFORMED THE ATMOSPHERE IN THOSE CLASSES THIS IS MY 19TH YEAR OF TEACHING AND THIS IS MY BEST YEAR SAYS BARBARA EVANS TRYING TO KEEP UP WITH SIX GROUPS OF NOISY SIX AND SEVENYEAROLDS RACING TO COMPLETE MATH CURSIVE WRITING AND ART ASSIGNMENTS WITH A DINOSAUR THEME THE IDEA BEHIND THE MULTIAGE CLASSES IS THAT CHILDREN LEARN AT DIFFERENT RATES SOME SIXYEAROLDS CAN LEARN CURSIVE WRITING AND FRACTIONS SOME CAN'T THEY WON'T BE PENALIZED FOR FAILING AND THE EXPOSURE IS BENEFICIAL UNUSUAL AS ITS SOUNDS THE CHILDREN SEEM TO HAVE ADJUSTED QUICKLY TO BEING IN MULTIAGE CLASSES THEY LEARN FROM ONE ANOTHER LIKE BROTHERS AND SISTERS IN A FAMILY SOME ESPECIALLY BRIGHT SIXYEAROLDS AT PICADOME HELP EIGHTYEAROLDS WITH MATH WHILE THE OLDER KIDS OFTEN HELP YOUNGER CHILDREN WITH ENGLISH SAYS PRINCIPAL JOHN MCINTYRE FIVEYEAROLDS WILL BE INTEGRATED INTO THE MULTIAGE PROGRAM NEXT YEAR HE SAYS IN THESE CLASSES TEACHERS ASSESS STUDENTS' ABILITY THEN PUSH THEM TO LEARN AS MUCH AS THEY CAN REGARDLESS OF AGE YOU DON'T SAY AT THE END OF THE YEAR EVERY CHILD OF A CERTAIN AGE WILL BE DOING THIS THIS AND THIS MR MCINTYRE SAYS HOW STUDENTS LEARN HAS CHANGED TOO AT PICADOME HANDSON LEARNING IN GROUPS HAS REPLACED TEXTBOOKS WHEN SIX TO EIGHTYEAROLDS STUDIED FORESTS RECENTLY THEY PITCHED A TENT IN CLASS CRAWLED IN IT AND SANG CAMP SONGS WHILE FEASTING ON TRAIL SNACKS WE TOLD SCARY STORIES INSIDE SAYS NINEYEAROLD KEVIN GRAY THEN THEY HIKED OUTSIDE TO MEASURE THE GIRTH OF TREE TRUNKS AND IDENTIFY LEAVES BIRDS AND INSECTS THE LESSON ENDED WITH A PLAY ABOUT THE DIFFERENT PARTS OF A TREE TO TEACH CHILDREN TO BE ANALYTICAL TEACHERS LET THEM FIGURE OUT ANSWERS TO THEIR OWN QUESTIONS SAYS MR MCINTYRE IF A CHILD ASKS WHY DIAMONDS ARE HARDER THAN JADE THE TEACHER CAN SAY GO TO THE LIBRARY AND ASK THE LIBRARIAN FOR HELP WITH BOOKS YOU DO THE RESEARCH AND COME BACK WITH THE ANSWER' THE LESSON DOESN'T HAVE TO END IN 30 MINUTES WE'RE ON A FLEXIBLE SCHEDULE THE APPROACH SEEMS TO HAVE ENERGIZED MANY STUDENTS I FIND KIDS WANT TO READ ALL THE TIME SAYS MS DEAN THE PICADOME TEACHER SOME KIDS TAKE BOOKS TO LUNCH I'VE NEVER HAD THAT BEFORE HER STUDENTS RECENTLY VOTED TO SKIP RECESS SO THEY COULD FINISH A WRITING LESSON MANY PARENTS LIKE PATRICIA GRAY KEVIN'S MOTHER ARE IMPRESSED I THINK KEVIN IS A BETTER WRITER AT HIS AGE THAN MY TWO OLDER DAUGHTERS ARE EVEN IN SIXTH AND SEVENTH GRADE SHE SAYS MY SON KNOWS HOW TO RESEARCH A PROJECT OR A BOOK BETTER THAN MY DAUGHTERS DID AT THAT AGE IN MATH KEVIN KNOWS THE MULTIPLICATION TABLES BUT HE LEARNED THE FIGURES USING BLOCKS HE WILL TELL YOU WHAT TWO TIMES THREE IS BUT NOT BECAUSE HE MEMORIZED IT HE THINKS IN HIS HEAD TWO GROUPS OF THREE HE KNOWS WHAT IT MEANS WHEREAS MY DAUGHTERS JUST KNOW IT BECAUSE THEY MEMORIZED IT SHE ADDS DESPITE SUCH RAVES THE CHANGES AT PICADOME HAVEN'T YET IMPROVED ITS SCORES ON STANDARDIZED TESTS ON TESTS LAST SPRING EIGHT AND NINEYEAROLDS IMPROVED THEIR SCORES FROM 1991 BY 7 AND 10 RESPECTIVELY BUT SCORES FOR SEVENYEAROLDS SLIPPED 21 TO JUST BELOW THE NATIONAL AVERAGE MR MCINTYRE CALLS THIS IRRELEVANT THE STUDENTS ARE LEARNING TO SOLVE PROBLEMS NOT MEMORIZE FACTS TO HELP THEM ANSWER MULTIPLECHOICE QUESTIONS HE SAYS SO OVERALL WE MET OUR EXPECTATIONS AT STANTON ELEMENTARY WHICH STARTED MULTIAGE CLASSES A YEAR BEFORE THE STATE PASSED THE REFORM IN 1989 CHILDREN RAISED THEIR SCORES 10 LAST SPRING FROM 1987 RESULTS ON THE PROBLEMSOLVING AND READINGCOMPREHENSION PORTIONS OF THE SAME TEST BUT STANTON STUDENTS SCORED 10 LOWER ON THE COMPUTATIONAL PORTION OF THE TEST AND 20 LOWER ON PHONICS MS KING STANTON'S PRINCIPAL ALSO PLAYS DOWN THE TESTS DRILLING ADDITION AND SUBTRACTION IN AN AGE OF CALCULATORS IS A WASTE OF TIME SHE CONTENDS WHILE THE FACT THAT STUDENTS SCORED WELL ON PROBLEM SOLVING SHOWS THEY ARE LEARNING KENTUCKY EDUCATORS POINT TO OTHER SIGNS OF PROGRESS OF 150000 STUDENTS WHO ATTENDED AFTERSCHOOL TUTORING PROGRAMS LAST YEAR HALF IMPROVED THEIR GRADES BUT KENTUCKY'S CATHOLIC SCHOOLS WHICH CLING TO TRADITIONAL EDUCATION WITH REPORT CARDS AND GRADES HAVE SEEN SHARP ENROLLMENT INCREASES SINCE THE PUBLICSCHOOL REFORMS BEGAN ENROLLMENT IN THE 17 CATHOLIC SCHOOLS IN THE LEXINGTON DIOCESE FOR EXAMPLE HAS RISEN BY ABOUT 500 STUDENTS SINCE 1988 TO 3500 NEARLY HALF OF THE STATE'S 45000 CATHOLIC SCHOOL STUDENTS ARE NONCATHOLICS MARIJO NELSON IS ONE PARENT WHO GOT FED UP WITH THE PUBLICSCHOOL EXPERIMENT THIS FALL SHE PULLED HER SON TIM OUT OF HIS PUBLIC SCHOOL AND ENROLLED HIM IN FIFTH GRADE AT CHRIST THE KING A LEXINGTON CATHOLIC SCHOOL AT 1200 A YEAR THE LACK OF STRUCTURE IN HIS OLD CLASS WAS CAUSING HIM TO BECOME LAZY ACADEMICALLY SHE SAYS THE SCHOOL JUST LET THE CHILDREN GO AT THEIR OWN PACE I DON'T THINK THAT WORKS REAL WELL SHE SAYS AT CHRIST THE KING TIM GETS AN HOUR OR MORE OF HOMEWORK A DAY TAKES FREQUENT EXAMS AND HAS TO SIT AT A DESK AND RAISE HIS HAND TO SPEAK MY SON WANTS TO BE A DOCTOR HE WON'T BE READY FOR THAT IF HE ATTENDS PUBLIC SCHOOL SAYS MS NELSON SOME PUBLICSCHOOL TEACHERS ACCUSTOMED TO A PRESCRIBED CURRICULUM COMPLAIN THEY HAVE RECEIVED LITTLE GUIDANCE ON TEACHING KIDS WHAT THEY NEED TO KNOW WITHOUT USING TEXTBOOKS WEEKEND AND EVENING SESSIONS HAVE BECOME ROUTINE AS TEACHERS SCRAMBLE TO INVENT LESSON PLANS THAT ONCE WERE LAID OUT IN INSTRUCTION GUIDES FOR THE LAST TWO YEARS EVERY SUNDAY AFTERNOON WE'VE MET TO PLAN CLASSES COMPLAINS KELLY MARCUM A STANTON TEACHER SOME FOURTHGRADE TEACHERS WHOSE CLASSES HAVE REMAINED TRADITIONAL ARE STILL BEING AFFECTED BY THE REFORMS KENTUCKY'S FOURTH GRADES ARE NOW FILLED WITH NINEYEAROLDS EMERGING FROM THE MIXEDAGE EXPERIENCE OF THE LOWER GRADES WENDA WEEKS A FOURTHGRADE TEACHER AT PICADOME SAYS THESE STUDENTS HAVE OVERALL BETTER WRITING AND COMMUNICATION SKILLS THAN HER PREVIOUS FOURTH GRADERS BUT THEY ARE ALSO LESS ORGANIZED AND TEND TO LEAVE WORK SCATTERED ABOUT THE CLASSROOM AND THEY ARE SO USED TO HELPING EACH OTHER IN GROUPS THAT THEY SOMETIMES HAVE DIFFICULTY WORKING ON THEIR OWN COMPLETING ASSIGNMENTS IS ALSO MORE OF A PROBLEM FOR SOME WE'VE HAD TRAINING THROUGHOUT THE YEAR BUT I'M STILL UNCOMFORTABLE WITH WHAT WE'RE DOING SAYS MS WEEKS I NEED MORE TRAINING IT'S ALL SO NEW THE STATE IS WAITING TO SEE HOW THE REFORMS WORK IN THE LOWER GRADES BEFORE EXTENDING THE MULTIAGE CLASSROOMS BEYOND THE THIRD GRADE MEANWHILE NEWLY EMPOWERED PARENTS AND TEACHERS ARE EXERCISING THEIR AUTHORITY AT MONTICELLO INDEPENDENT SCHOOL IN SOUTHWESTERN KENTUCKY THE PARENTTEACHER COUNCIL REPLACED THE PRINCIPAL IT ALSO PRESSED THE SCHOOL 56 OF WHOSE STUDENTS COME FROM FAMILIES ON WELFARE TO REPLACE INDUSTRIAL ARTS COURSES WHERE STUDENTS WERE LEARNING HOW TO MAKE DUCK DECOYS WITH A TECHNOLOGY CLASS THAT COVERED ROBOTICS AND PHOTOGRAPHY MONTICELLO ALSO BEGAN OFFERING BEFORESCHOOL CLASSES FOR POORPERFORMING STUDENTS AND 12HOUR CHILD CARE FOR TEENAGE STUDENTMOMS OR NEEDY FAMILIES YOU CAN'T ISOLATE SIX HOURS OF A CHILD'S LIFE IN A SCHOOL DAY AND EXPECT TO PROVIDE THEM WITH AN EDUCATION REGARDLESS OF WHAT GOES ON THE OTHER 18 HOURS OF THE DAY SAYS IVAN TUGGLE HEAD OF THE SCHOOL'S FAMILY RESOURCE CENTER YOU'VE GOT TO ADDRESS THOSE SOCIAL ISSUES KENTUCKY OFFICIALS CONCEDE THAT THE STATE'S SCHOOLS STILL NEED MUCH MORE IMPROVEMENT THE RESULTS OF A NEW STATE EXAM GIVEN FOR THE FIRST TIME LAST SPRING TO FOURTH EIGHTH AND 12TH GRADERS WERE GRIM JUST 12 ACHIEVED DISTINGUISHED OR PROFICIENT LEVELS WHILE 88 SCORED AT APPRENTICE OR NOVICE FAILING LEVELS EDWARD REIDY THE STATE'S ASSOCIATE COMMISSIONER FOR CURRICULUM ASSESSMENT AND ACCOUNTABILITY NOTES THAT THE TEST IS EVALUATING STUDENT SKILLS IN THE EARLY STAGES OF THE EDUCATION REFORMS AND DOESN'T REFLECT THE CHANGES THAT MANY SCHOOLS HAVE ONLY BEGUN TO IMPLEMENT IN THE PAST YEAR OR TWO WE'RE FACING THE TRUTH ON WHERE WE ARE RIGHT NOW RELATIVE TO THE STANDARD OF WHERE WE WANT TO BE SAYS DR REIDY YOU DON'T CHANGE IN ONE TO TWO YEARS WHAT HAS BEEN BUILDING FOR 150 YEARS 9301050027 930105 LAW LEGAL BEAT IT'S ALL BUSINESS FOR NOVEL COURT NOW IN SESSION BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ON OPENING DAY OF THE NEW ALLBUSINESS COURT HERE A STATE JUDGE DISPOSED OF A 10YEAROLD REALESTATE LAWSUIT IN LESS THAN A MINUTE AND WIPED 26 OTHER SUITS OFF THE CASELOAD BEFORE THE AFTERNOON WAS OVER SUCH RAPID ATTENTION TO AGING LAWSUITS IS ONE GOAL OF THE NEW STATE PROGRAM LAUNCHED YESTERDAY UNDER WHICH FOUR JUDGES WILL GET THE BULK OF CASES IN MANHATTAN INVOLVING COMMERCIAL ISSUES THESE INCLUDE DISPUTES OVER CONTRACTS AND SALES AS WELL AS SHAREHOLDER SUITS AGAINST CORPORATIONS EVENTUALLY THE FOURSOME WILL INITIALLY HANDLE ALL THE BOROUGH'S COMMERCIAL CASES IN NEW YORK STATE AND ELSEWHERE CIVILCOURT JUDGES GENERALLY ARE EXPECTED TO PRESIDE OVER A RANGE OF LITIGATION INCLUDING BUSINESS AND NONBUSINESS CASES BUT NEW YORK COURT OFFICIALS FRUSTRATED BY A BACKLOG OF ALMOST 50000 CIVIL CASES BELIEVE JUDGES WITH A BUSINESS SPECIALTY MAY BE ABLE TO GRASP MORE QUICKLY THE COMPLEX ISSUES INVOLVED IN MANY COMMERCIAL CASES IN ADDITION THE JUDGES WILL BE PERMITTED TO DEVELOP THEIR OWN PROCEDURES TO STREAMLINE CASES AND ENCOURAGE SETTLEMENTS OF SUITS LAWYERS IN SEVERAL STATES HAVE BEEN CAMPAIGNING FOR SPECIALIZED TRIAL COURTS TO HANDLE BUSINESS LITIGATION BUT MATTHEW CROSSON NEW YORK'S TOP COURT ADMINISTRATOR SAID THE MANHATTAN ARRANGEMENT IS THE FIRST IN WHICH A GENERAL TRIAL COURT HAS IMPLEMENTED SUCH A PROGRAM THE PENNSYLVANIA LEGISLATURE HAS BEEN CONSIDERING A BILL THAT WOULD SET UP A SPECIALIZED COURT SYSTEM FOR BUSINESS LITIGATION BUT HAS NOT ACTED TO DATE DELAWARE ALREADY HAS A SPECIALIZED BUSINESS COURT BUT IT ISN'T PART OF THE STATE'S REGULAR COURT SYSTEM AND DEALS ONLY WITH MATTERS OF CORPORATE GOVERNANCE AND REQUESTS FOR COURT ORDERS AND INJUNCTIONS SOCALLED EQUITY MATTERS IN MANHATTAN JUSTICE IRA GAMMERMAN THE JUDGE WHO MADE QUICK WORK OF THE 27 CASES YESTERDAY ISSUED A LIST OF RULES FOR LAWYERS WITH CASES IN HIS COURTROOM DESIGNED TO SHOW THAT WE REALLY MEAN BUSINESS TO MOVE THESE CASES HE SAID DURING A BREAK INDEED DURING THE AFTERNOON SESSION HE DISMISSED OR DISCONTINUED EIGHT OF THE CASES IN A TOTAL OF 35 MINUTES HE'S DISMISSING CASES LIKE THERE'S NO TOMORROW SAID THE JUDGE'S LAW SECRETARY PAT GILES IF YOU LET CASES SIT THERE JUSTICE GAMMERMAN SAID THE PARTIES DON'T HAVE ANY INCENTIVE TO TRY TO RESOLVE THE CASES ON THEIR OWN NOT EVERYONE APPLAUDED THE SWIFT DECISIONS INDEED A BAILIFF HAD TO FORCE AN ANGRY LAWYER AWAY FROM THE BENCH AFTER HE RAILED AGAINST JUSTICE GAMMERMAN FOR DISMISSING HIS CASE JUSTICE GAMMERMAN SAID THAT HE PROBABLY WILL REINSTATE SOME OF THE CASES THAT WERE DISMISSED BECAUSE LAWYERS DIDN'T SHOW UP FOR CASES THAT AREN'T DISMISSED THE NEW COURTS HAVE THE AUTHORITY TO IMPLEMENT SPECIALIZED RULES THAT CAN HELP COMMERCIAL CASES PROGRESS MORE EFFICIENTLY IN JUSTICE GAMMERMAN'S COURT FOR EXAMPLE LAWYERS WON'T HAVE A RIGHT TO GET TRIALS POSTPONED WHEN THEIR WITNESSES DON'T SHOW UP UNLESS THEY HAVE GIVEN FIVE DAYS' NOTICE IN ADDITION THE JUDGE PLANS TO PUT STRICT LIMITS ON PRETRIAL MOTIONS AND JURY SELECTION AND TO REQUIRE THE LAWYERS TO REPORT ON THEIR PROGRESS AT THE END OF EACH DAY OF JURY SELECTION MR CROSSON SAID THE COMMERCIAL COURT PROGRAM IS DESIGNED IN PART TO MAKE THE STATE'S JUDICIAL PROCESS MORE ACCOMMODATING TO BUSINESSES INDEED DELAWARE'S COURT OF CHANCERY IS OFTEN CITED AS AN IMPORTANT REASON THAT SO MANY COMPANIES NEARLY HALF THOSE LISTED ON THE NEW YORK STOCK EXCHANGE ARE INCORPORATED THERE STANLEY OSTRAU A NEW YORK ADMINISTRATIVE JUDGE WHO HELPED PUT TOGETHER THE MANHATTAN PLAN SAID HE BECAME PARTICULARLY FRUSTRATED WITH NEW YORK'S COMMERCIAL LITIGATION CRUNCH WHEN HE HEARD NEW JERSEY WAS LURING BUSINESSES TO MOVE THERE BY TOUTING ITS MORE EFFICIENT COURT SYSTEM IT REALLY NETTLED ME HE SAID THE NEW PLAN HE SAID IS REALLY A TAKEOFF OF WHAT DELAWARE DID UNLIKE DELAWARE'S SYSTEM AND THE PENNSYLVANIA PLAN HOWEVER NEW YORK IMPLEMENTED ITS COMMERCIAL COURTS WITHOUT SETTING UP A SEPARATE COURT SYSTEM WHICH WOULD REQUIRE AMENDING THE STATE CONSTITUTION INSTEAD COURT OFFICIALS DECIDED TO ADJUST THE ASSIGNMENTS OF EXISTING COURTS MR CROSSON SAID THE STATE'S APPROACH MAY DEMONSTRATE TO OTHER STATES THAT COMMERCIAL COURTS CAN BE CREATED MORE QUICKLY AND MORE EASILY WITH ADMINISTRATIVE CHANGES THAN A CONSTITUTIONAL AMENDMENT USING CURRENT TRIAL JUDGES INSTEAD OF CREATING NEW COURTS MAY BRING ADDED DIVIDENDS TO NEW YORK WHERE CUTBACKS IN THE COURTS' BUDGET HAVE FORCED THE STATE TO ELIMINATE ABOUT A THIRD OF ITS CIVIL COURTS WHEN YOU CUT BACK AND A BACKLOG LIKE THIS ACCUMULATES YOU EXPLORE VARIOUS WAYS TO DIG YOURSELF OUT OF THE HOLE SAID MARY DE BOURBON SPOKESWOMAN FOR THE STATE COURTS IN ADDITION IF THE COURTS GROW MORE EFFICIENT AT HANDLING BUSINESS CASES SOME BUSINESSES THAT HAVE TURNED TO PRIVATE MEDIATION AND ARBITRATION SERVICES MAY RETURN TO THE PUBLIC COURT SYSTEM TO RESOLVE DISPUTES WHILE PRIVATE ALTERNATIVE DISPUTE RESOLUTION IS PRAISED BY MANY WHO USE IT CRITICS SUGGEST THAT A VIBRANT COURT SYSTEM ALSO IS NEEDED SO THAT JUDGEMADE LAW CAN EVOLVE CASE BY CASE AND THE PUBLIC CAN BE KEPT INFORMED OF COMMERCIAL CONFLICTS THAT MIGHT OTHERWISE BE RESOLVED IN SECRET IN ADDITION TO JUSTICE GAMMERMAN THE OTHER MANHATTAN JUDGES WHO PRESIDE OVER THE NEW COMMERCIAL COURTS ARE MYRIAM ALTMAN HERMAN CAHN AND BEATRICE SHAINSWIT MILBANK TWEED HADLEY & MCCLOY HAS BEGUN OFFERING HEALTH BENEFITS TO DOMESTIC PARTNERS OF ITS LESBIAN AND GAY LAWYERS AND STAFF MEMBERS THE 425ATTORNEY FIRM APPARENTLY IS THE FIRST MAJOR NEW YORK LAW FIRM TO OFFER SUCH BENEFITS SAID JANE L MACLENNAN MILBANK TWEED'S MANAGING DIRECTOR OF PROFESSIONAL DEVELOPMENT THE BENEFITS TOOK EFFECT AT THE START OF THE YEAR THEY'RE PART OF A NEW PROGRAM THAT ALSO PROVIDES FREE EMERGENCY CHILD CARE AND FREE USE OF A REFERRAL SERVICE FOR THE CARE OF CHILDREN AND OF ELDERLY FAMILY MEMBERS TAIWAN BRANCH GRAHAM & JAMES A SAN FRANCISCOBASED LAW FIRM WILL OPEN AN OFFICE IN TAIPEI THIS MONTH THE 400LAWYER FIRM SAID THAT PARTNER KEVIN HOBGOODBROWN WILL OVERSEE THE OFFICE JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9301050026 930105 OREGON UTILITY PLANS TO CLOSE NUCLEAR FACILITY PORTLAND GENERAL DECIDES TO SHUTTER TROJAN PLANT NOW RATHER THAN IN '96 BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL PORTLAND GENERAL CORP REVERSING EARLIER PLANS TO SHUTTER ITS TROJAN NUCLEAR PLANT IN 1996 SAID IT WILL CLOSE THE FACILITY PERMANENTLY AS SOON AS POSSIBLE A STEP THAT COULD LEAVE THE UTILITY OPEN TO AS MUCH AS 350 MILLION IN ACCOUNTING CHARGES THE PORTLAND ORE UTILITY'S ANNOUNCEMENT WAS MADE AFTER TRADING HOURS AND CAUGHT EVEN STATE REGULATORS BY SURPRISE IRONICALLY THE DECISION CAME AFTER YEARS OF VYING WITH ENVIRONMENTALISTS WHO HAVE SOUGHT TO CLOSE THE NOW 16YEAROLD NUCLEAR PLANT IN RAINIER ORE PORTLAND GENERAL SAID IT DECIDED TO CLOSE THE FACILITY PERMANENTLY BECAUSE OF DOUBTS WITHIN THE FEDERAL NUCLEAR REGULATORY COMMISSION OVER ITS SAFETY DOUBTS THAT PORTLAND GENERAL SAID WOULD MAKE UNACCEPTABLE DELAYS IN RESTARTING TROJAN WHICH HAS BEEN SHUT DOWN SINCE NOV 9 BECAUSE OF TECHNICAL DIFFICULTIES ADDITIONALLY THE UTILITY SAID THAT CONDITIONS IN WESTERN US ELECTRICITY MARKETS ARE CHANGING SWIFTLY MAKING IT LIKELY THAT REPLACEMENT POWER FOR THE BIG 1100MEGAWATT REACTOR CAN BE PURCHASED MORE CHEAPLY THAT ANTICIPATED EVEN THIS PAST SUMMER WHEN PORTLAND GENERAL DECIDED TO CLOSE THE TROJAN PLANT IN 1996 PORTLAND GENERAL THROUGH ITS PORTLAND GENERAL ELECTRIC CO UNIT HOLDS A 675 STAKE IN TROJAN AND IS THE PLANT'S OPERATOR A 30 STAKE IS OWNED BY THE EUGENE ORE WATER AND ELECTRIC BOARD A GOVERNMENT AUTHORITY AND THE REMAINING 25 IS OWN BY PACIFIC POWER & LIGHT CO A UNIT OF PORTLANDBASED PACIFICORP IN THEORY THE TWO OTHER OWNERS COULD VETO PORTLAND GENERAL'S DECISION TO CLOSE THE PLANT HOWEVER BOTH ARE EXPECTED TO FOLLOW THE PRINCIPAL OWNER'S LEAD A PORTLAND GENERAL SPOKESMAN SAID THE TROJAN NUCLEAR REACTOR WAS DESIGNED AND BUILT BY WESTINGHOUSE ELECTRIC CORP PITTSBURGH THE SPOKESMAN SAID NEGOTIATIONS WITH WESTINGHOUSE OVER COMPENSATION FOR THE PLANT'S PROBLEMS APPEAR TO HAVE FAILED IT LOOKS LIKE WE ARE GOING FORWARD WITH LITIGATION THE SPOKESMAN SAID PORTLAND GENERAL SAID IT PLANS TO ASK REGULATORS TO AMORTIZE TROJAN'S BOOK VALUE TOGETHER WITH CLOSING COSTS OVER THE REMAINING PERIOD OF THE PLANT'S NUCLEAR LICENSE WHICH RUNS UNTIL 2011 SUCH A PLAN WOULD MEAN THAT THE TROJAN'S CLOSING WOULD HAVE NO IMMEDIATE IMPACT ON THE UTILITY'S PROFIT HOWEVER WHILE ATTRACTIVE TO THE UTILITY AND ITS SHAREHOLDERS THE APPROVAL OF SUCH AN APPROACH IS UP TO THE OREGON UTILITY COMMISSION AND LIKELY WILL BE THE SUBJECT OF DETAILED HEARINGS THERE WILL BE A FORM OF PRUDENCY HEARING HERE AND I WOULDN'T SAY THAT SHAREHOLDERS ARE OFF THE HOOK AT LEAST NOT IN MY MIND SAID COMMISSIONER JOAN H SMITH IN AN INTERVIEW KEN L HARRISON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PORTLAND GENERAL SAID IN AN INTERVIEW WE THINK WE CAN DISPLAY THAT THIS IS THE LEASTCOST APPROACH AND THAT WE HAVE ACTED PRUDENTLY BUT HE ADDED THAT IS A BELIEF NOT A FACT AT DEC 31 1991 PORTLAND GENERAL'S INVESTMENT IN TROJAN AMOUNTED TO 579 MILLION DEPRECIATION RESERVES OF 233 MILLION HAD BEEN ACCUMULATED INDICATING 346 MILLION OF UNAMORTIZED INVESTMENTWHICH HAS GROWN SINCE THAT TIME AS WELL PORTLAND GENERAL'S SHARE OF DECOMMISSIONING COSTS IN THE YEAR 2011 ARE ESTIMATED BY PORTLAND GENERAL AT 488 MILLION THE AGING NUCLEAR PLANT IN RECENT YEARS HAS HAD LEAKS IN ITS STEAM GENERATORS WHICH TRANSMIT THE HEAT OF THE NUCLEAR REACTOR TO THE NONNUCLEAR SIDE OF THE PLANT DESPITE REPEATED EFFORTS TO REPAIR THE PROBLEMS DOUBTS LINGERED AT THE NRC ABOUT CERTAIN MICROCRACKS THAT HAD APPEARED IN PIPING IN THE STEAM GENERATORS UNTIL YESTERDAY PORTLAND GENERAL ARGUED THAT IT COULD SAFELY REPAIR THE PROBLEMS AND OPERATE THE PLANT THROUGH 1996 IN THE MEANTIME IT PLANNED TO BUILD OR LEASE NEW GENERATING CAPACITY AND TO LAUNCH ENERGYSAVING PROGRAMS AMONG RATEPAYERS IT APPEARS THAT YESTERDAY'S DECISION WILL ACCELERATE THOSE REPLACEMENT PROGRAMS PORTLAND GENERAL STOCK CLOSED YESTERDAY AT 18375 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PRIOR TO THE COMPANY'S ANNOUNCEMENT EDWARD J TIRELLO JR AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO SAID THE STOCK MAY REACT POSITIVELY TODAY TO THE NEWS INVESTORS MAY BE RELIEVED THAT FINALLY THIS STORY IS REACHING AN END MR TIRELLO SAID 9301050025 930105 CORRECTIONS & AMPLIFICATIONS NEWCAR SALES FOR LATE DECEMBER ARE DUE OUT TOMORROW IN YESTERDAY'S EDITION THE TRACKING THE ECONOMY COLUMN ERRONEOUSLY SAID THE NUMBERS WOULD BE OUT YESTERDAY PRIMERICA CORP GAVE TRAVELERS CORP FULL INTEREST IN CERTAIN HEALTH INSURANCE OPERATIONS OF ITS TRANSPORT LIFE/VOYAGER GROUP AS PART OF AN ALLIANCE WITH TRAVELERS IN THURSDAY'S BUSINESS BRIEFS SECTION IT WAS INCORRECTLY STATED THAT PRIMERICA HAD GIVEN FULL INTEREST IN ALL HEALTH INSURANCE OPERATIONS OF ITS TRANSPORT LIFE/VOYAGER GROUP 9301050024 930105 PEPPER AND SALT TO KNOW EACH COMPANY'S POTENTIAL IS MANAGEMENT BOTH LEAN AND TOUGH DOES IT HAVE CAPITAL ENOUGH ARE EARNINGS AND ITS PRODUCT STRONG AND IF RECESSION COMES ALONG WHICH ONE IS BEST EQUIPPED TO COPE NOW CHECK IT WITH YOUR HOROSCOPE 9301050023 930105 WELLSFORD ACQUIRES APARTMENTS NEW YORK WELLSFORD RESIDENTIAL PROPERTY TRUST SAID IT ACQUIRED MULTIFAMILY HOUSING COMPLEXES CONTAINING 490 APARTMENT UNITS FOR 183 MILLION THE PURCHASES IN DALLAS AND DENVER INCLUDE THE CALAIS APARTMENTS IN SUBURBAN DALLAS AND IRONWOOD AT THE RANCH IN SUBURBAN DENVER THE DENVER PURCHASE INCLUDED THE ASSUMPTION OF 64 MILLION IN TAXEXEMPT FINANCING SECURED BY A 27YEAR FIRST MORTGAGE WITH AN AVERAGE ANNUAL INTEREST RATE OF 737 WELLSFORD OWNS 5745 APARTMENTS PRIMARILY IN THE SOUTHWEST AND ROCKY MOUNTAIN REGIONS 9301050022 930105 BUSH TO PAINT DARKER PICTURE OF US DEFICIT GAP IN 1997 MAY EXCEED 300 BILLION CLINTON ADVISERS ARE GLOOMIER BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT BUSH WILL REPORT TOMORROW THAT THE OUTLOOK FOR THE FEDERAL BUDGET DEFICIT IS GROWING WORSE AND THAT IT WILL PROBABLY EXCEED 300 BILLION IN FISCAL 1997 UNLESS THERE ARE SUBSTANTIAL CHANGES IN FEDERAL POLICY PRESIDENTELECT CLINTON'S ADVISERS SAY MR BUSH AND HIS BUDGET DIRECTOR RICHARD DARMAN ARE UNDERSTATING THE PROBLEM ESTIMATES CIRCULATING INSIDE THE CLINTON TRANSITION TEAM BASED ON INFORMATION FROM THE WHITE HOUSE BUDGET OFFICE SAY THE DEFICIT IN FISCAL 1997 WHICH BEGINS OCT 1 1996 WOULD HIT 384 BILLION IF THE GOVERNMENT WERE TO MAINTAIN THE CURRENT LEVEL OF SERVICES AND DEFENSE SPENDING THE CLINTON CAMP HAS AN INTEREST IN MAKING THE DEFICIT LOOK AS BAD AS POSSIBLE SO IT CAN BLAME THE PAIN OF REDUCING IT ON 12 YEARS OF REPUBLICAN PRESIDENCIES AND SOME CLINTON ADVISERS ARE URGING THE PRESIDENTELECT TO USE THE WORSENING DEFICIT OUTLOOK TO EXPLAIN WHY HE MUST RETREAT FROM SOME OF HIS COSTLY CAMPAIGN PROMISES OR PROPOSE TAX INCREASES OR SPENDING CUTS BEYOND THOSE HE DESCRIBED BEFORE THE ELECTION THE ABBREVIATED BUSH BUDGET DUE TOMORROW WON'T GIVE MR CLINTON MUCH ADVICE ON HOW TO REDUCE THE DEFICIT IT WILL INCLUDE ALTERNATIVE DEFICIT PROJECTIONS BASED ON DIFFERENT ECONOMIC FORECASTS AND DIFFERENT CAPS ON FEDERAL SPENDING BUT THE 384 BILLION FORECAST FOR 1997 THAT IS CIRCULATING IN THE CLINTON CAMP WON'T BE AMONG THOSE SCENARIOS THE BUSH ADMINISTRATION'S ECONOMIC FORECAST TO BE RELEASED ALONG WITH THE BUDGET PREDICTS THE ECONOMY WILL GROW BY 29 BETWEEN THE FOURTH QUARTERS OF CALENDAR 1992 AND 1993 AND THAT THE UNEMPLOYMENT RATE WILL GRADUALLY DECLINE TO AVERAGE 69 THIS YEAR ADMINISTRATION OFFICIALS SAID THE ADMINISTRATION EXPECTS INTEREST RATES ON THREEMONTH TREASURY BILLS TO AVERAGE 35 AND ON 10YEAR TREASURY SECURITIES TO AVERAGE 65 DURING CALENDAR 1993 THE BUDGET WILL SHOW DEFICIT PROJECTIONS BASED ON THIS ECONOMIC FORECAST AMONG OTHERS EVEN THE MOST PESSIMISTIC OF MR DARMAN'S SCENARIOS ASSUME AS BOTH THE WHITE HOUSE AND THE CONGRESSIONAL BUDGET OFFICE HAVE IN THE PAST THAT THE GOVERNMENT STICKS TO THE SPENDING CEILINGS FOR FISCAL 1994 AND 1995 THAT WERE WRITTEN INTO LAW BACK IN 1990 FOR FISCAL YEARS 1996 THROUGH 1999 MR DARMAN ASSUMES THAT TOTAL DISCRETIONARY SPENDING WHICH INCLUDES DOMESTIC AND DEFENSE SPENDING THAT IS APPROPRIATED ANNUALLY IS FROZEN WITHOUT ANY INCREASE FOR INFLATION IN OTHER WORDS ANY INCREASE IN DOMESTIC SPENDING EVEN AN INCREASE TO KEEP UP WITH INFLATION WOULD BE MATCHED BY A CUT IN DEFENSE BUT SOME CLINTON AIDES COMPLAIN THAT THIS APPROACH UNDERSTATES THE DEFICIT PROBLEM THAT MR CLINTON FACES WITHOUT EVER SAYING SO EXPLICITLY CLINTON AIDES SAY THE PROJECTIONS ASSUME THAT THE CURRENT LEVEL OF SERVICES WON'T BE MAINTAINED THIS DISPUTE DOESN'T INVOLVE SPENDING ON HEALTH AND OTHER GOVERNMENT BENEFIT PROGRAMS WHICH ARE A FAR MORE VEXING BUDGET ISSUE ALTHOUGH THE DEFICIT OUTLOOK GREW PROGRESSIVELY WORSE DURING THE CAMPAIGN PARTLY BECAUSE SPENDING ON HEALTH CARE HAS BEEN RISING FASTER THAN ANTICIPATED AND REVENUES FELL SHORT OF EXPECTATIONS MR CLINTON NEVER REVISED HIS ECONOMIC PLAN SINCE THE ELECTION HOWEVER THE PRESIDENTELECT HIMSELF HAS CALLED ATTENTION TO THE FACT THAT THE DEFICIT NOW LOOKS FAR WORSE THAN IT DID WHEN HIS PLAN WAS ASSEMBLED MR CLINTON'S COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID YESTERDAY THAT RECENT DEFICIT PROJECTIONS MAKE OUR ATTEMPTS TO ADDRESS THE DEFICIT MORE URGENT AND MORE NECESSARY AT THE SAME TIME AND THAT'S WHAT WE INTEND TO DO THE DEFICIT FOR FISCAL 1992 WHICH ENDED SEPT 30 WAS 290 BILLION THIS YEAR'S DEFICIT WILL BE LARGER PARTLY BECAUSE CONGRESS POSTPONED SOME SPENDING ON THE SAVINGSANDLOAN CLEANUP 9301050021 930105 ENTERPRISE FOCUS ON FRANCHISING FTC ASSURES LAWMAKERS IT'S ENFORCING FRANCHISE RULES BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL UNDER FIRE A FEDERAL AGENCY LISTS ITS FRANCHISING PROBES THE FEDERAL TRADE COMMISSION TOLD CONGRESS IT IS CONDUCTING 30 FORMAL INVESTIGATIONS INTO ALLEGED VIOLATIONS OF DISCLOSURE RULES BY FRANCHISERS THE FTC HAS DISCLOSED DETAILS OF THE INQUIRIES TO JOHN D DINGELL D MICH AND JOHN J LAFALCE D NY THE TWO LAWMAKERS HAD ASKED THE FTC TO RESPOND TO ALLEGATIONS BY FRANCHISEES THAT IT DOESN'T ADEQUATELY ENFORCE THE RULES IN RESPONSE TO A REQUEST BY THE WALL STREET JOURNAL UNDER THE FREEDOM OF INFORMATION ACT THE FTC LAST WEEK RELEASED PORTIONS OF ITS RESPONSE BUT IT WITHHELD OTHER PORTIONS INCLUDING THE NAMES OF FRANCHISERS UNDER INVESTIGATION CONTENDING AMONG OTHER THINGS THAT DISCLOSURE WOULD INTERFERE WITH ENFORCEMENT ACTIVITY THE FTC SAID IT HAD FILED 27 FRANCHISERULE ENFORCEMENT ACTIONS IN FEDERAL COURT DURING ITS PAST FIVE FISCAL YEARS ALL OF THESE CASES HAVE DEMANDED SIGNIFICANT RESOURCE COMMITMENTS AND SEVERAL HAVE INVOLVED COMPLEX FRAUDS IT SAID NINE OF THOSE CASES ARE STILL PENDING MEANWHILE OF 84 ADDITIONAL INVESTIGATIONS INTO FRANCHISING DURING THE FIVEYEAR PERIOD THE FTC IS STILL PURSUING 30 IT ADDED THE FTC SAID IT HAS BROUGHT CASES AGAINST FRANCHISERS ON SEVERAL GROUNDS INCLUDING INCOMPLETE DISCLOSURE TO PROSPECTIVE FRANCHISEES OF LAWSUITS AGAINST FRANCHISERS UNREASONABLE CLAIMS ABOUT FRANCHISEES' EARNINGS INACCURATE DISCLOSURES OF PRIOR FRANCHISE FAILURES AND FALSE FINANCIAL STATEMENTS THOUGH FRANCHISING COMPLAINTS TO THE AGENCY ARE ON THE RISE THE FTC NOTED THAT THEY STILL ACCOUNT FOR WELL UNDER 2 OF THE MORE THAN 40000 TOTAL COMPLAINTS IT RECEIVES EACH YEAR RENEWED EFFORTS TO CURB FRANCHISERS ARE EXPECTED IN CONGRESS I'M POSITIVE FRANCHISING IS A GROWING ISSUE IT'S A CUTTINGEDGE ISSUE SAYS US REP GARY L ACKERMAN THE NEW YORK DEMOCRAT SAYS HE WILL INTRODUCE A BILL AIMED AT PROMOTING FRANCHISER FAIRNESS TO FRANCHISEES MR ACKERMAN SAYS HE WILL MODEL THE BILL AFTER ONE INTRODUCED LAST YEAR BY JAMES H SCHEUER WHO DIDN'T RUN FOR REELECTION TO CONGRESS THE SCHEUER BILL AMONG OTHER THINGS WOULD HAVE REQUIRED FRANCHISERS TO BE COMPETENT AT THEIR UNDERLYING BUSINESSES MEANWHILE REP LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE IS EXPECTED TO REINTRODUCE TWO TOUGH BILLS TO INCREASE FRANCHISERS' DISCLOSURES TO PROSPECTIVE FRANCHISEES AND TO GOVERN THE RELATIONSHIP BETWEEN FRANCHISER AND FRANCHISEE IN A DECEMBER LETTER TO FRANCHISING EXECUTIVES REP LAFALCE SAID HE DOESN'T DEEM THE 1992 VERSIONS EITHER FINAL OR COMPLETE NEW DRAFTS WILL INCORPORATE ADVICE HE HAS RECEIVED REP LAFALCE SAID THOUGH HE WASN'T MORE SPECIFIC A SPOKESMAN FOR THE INTERNATIONAL FRANCHISE ASSOCIATION WHICH OPPOSED THE 1992 BILLS SAYS THE FRANCHISER TRADE GROUP HAS A WAITANDSEE ATTITUDE REGARDING FORTHCOMING VERSIONS THE REAL THING IS THIS A GENUINE CONTROVERSY INVOLVING COKE REP ACKERMAN SAYS HIS INTEREST IN FRANCHISING HAS BEEN PIQUED LARGELY BY SOFTDRINK DISTRIBUTORS IN HIS NEW YORK CONGRESSIONAL DISTRICT WHO ARE CONCERNED ABOUT FRANCHISERENEWAL RIGHTS THE DISTRIBUTORS SAY THEY FEAR THAT THEIR CONTRACTS WITH COCACOLA BOTTLING CO OF NEW YORK WON'T BE RENEWED WHEN THEY EXPIRE IN 1995 MORE THAN 350 DISTRIBUTORS IN A REGION INCLUDING NEW YORK CITY AND LONG ISLAND MAY BE LEFT WITH NOTHING NO DISTRIBUTION RIGHTS NO EQUITY AND NO MONETARY VALUE TO SHOW FOR THEIR LIFELONG INVESTMENT A SPOKESMAN FOR THE DISTRIBUTORS' TRADE GROUP SAYS THE DISTRIBUTORS CONCEDE THAT IN 1980 THEY SIGNED CONTRACTS LIMITED TO 15 YEARS BUT LIKE MANY OTHER FRANCHISEES THEY NOW INSIST THAT MANY FRANCHISING CONTRACTS ARE ONESIDED FAVORING THE FRANCHISER ON MANY ISSUES REP ACKERMAN ISN'T THE ONLY ONE LENDING A SYMPATHETIC EAR TO THE DISTRIBUTORS ON THE STATE LEVEL NEW YORK STATE ASSEMBLYMAN I WILLIAM BIANCHI HAS INTRODUCED A BILL TO PREVENT ARBITRARY TERMINATIONS AND NONRENEWALS OF FRANCHISES OR PROVIDE COMPENSATION FOR TERMINATED FRANCHISEES BUT THE BOTTLER BASED IN GREENWICH CONN PROFESSES TO SEE NO CONTROVERSY THE COMPANY HAS NEVER INDICATED THAT IT WON'T RENEW THE CONTRACTS A SPOKESMAN SAYS AND ONLY NOW IS CONSIDERING THE ISSUE THIS PROBLEM EXISTS IN THEIR MINDS ONLY HE SAYS OF THE DISTRIBUTORS IT'S BEING BLOWN OUT OF PROPORTION HE SAYS THE COMPANY HAS BEGUN NEGOTIATIONS WITH THE DISTRIBUTORS OVER THE LANGUAGE FOR POSSIBLE NEW CONTRACTS COCACOLA CO IN ATLANTA WHICH MAKES CONCENTRATED DRINKS FOR SALE TO BOTTLERS ISN'T A PARTY TO THE FRANCHISE CONTRACTS USED GOODS ARE GOOD FOR A NEW TREND IN FRANCHISING WE USED TO LIVE IN A VERY VERY THROWAWAY SOCIETY SAYS GEOFFREY STEBBINS A FRANCHISING CONSULTANT IN SOUTHFIELD MICH BUT THAT IS CHANGING FAST AND FRANCHISERS ARE MOVING TO CAPITALIZE ON THE TREND HE ADDS CHILDREN'S ORCHARD INC IN NEWBURYPORT MASS WITH 41 FRANCHISED UNITS SO FAR IS BUILDING A CHAIN THAT SELLS USED CLOTHING FOR CHILDREN KAREN A LYNCH PRESIDENT CALLS HER EIGHTYEAROLD BUSINESS RECYCLING AT ITS BEST SHE SAYS IT IS FASHIONABLE FOR CONSUMERS TO BE FRUGAL ONE CUSTOMER DROVE UP TO A CHILDREN'S ORCHARD OUTLET IN A PORSCHE OTHER YOUNG FRANCHISE CHAINS ARE SELLING SUCH THINGS AS USED COMPUTERS AND USED SPORTING GOODS PLAY IT AGAIN SPORTS FRANCHISE CORP IN MINNEAPOLIS SAYS IT HAS GROWN TO 274 UNITS FROM A SINGLE STORE SINCE 1988 ABOUT HALF ITS SALES ARE FROM USED SPORTS EQUIPMENT THAT'S WHAT DIFFERENTIATES US FROM OTHERS SAYS JOHN LEFFLER A FRANCHISE SALESMAN HIS PITCH IT'S A BUSINESS THAT MAKES A LOT OF SENSE FOR THE TIMES IT SAVES PEOPLE MONEY EXPRESS CASH INTERNATIONAL CORP A FOURYEAROLD SAN ANTONIO TEXAS OPERATOR OF 18 PAWN SHOPS SAYS IT GETS HALF ITS PROFITS FROM SELLING USED GOODS RECEIVED AS COLLATERAL IT HAS FORMED A SUBSIDIARY TO FRANCHISE SUCH SHOPS IN THE SOUTH BRIEFS BACHMAN CO READING PA HAS AGREED TO PAY A 30000 CIVIL PENALTY TO SETTLE FTC CHARGES THAT THE SNACKFOOD COMPANY FAILED TO GIVE REQUIRED DISCLOSURE DOCUMENTS TO PROSPECTIVE WHOLESALERS OF ITS PRODUCTS THE AGREEMENT IS SUBJECT TO COURT APPROVAL THE FTC SAYS JOSEPH F WELCH OWNER OF BACHMAN NOTES THAT THE COMPANY ADMITTED NO WRONGDOING SPURRED BY THE NORTH AMERICAN FREE TRADE AGREEMENT A GROUP OF US FRANCHISERS WILL HOLD AN INVESTMENT CONFERENCE IN MEXICO CITY JAN 2122 TO SEEK MASTER LICENSEES THERE 9301050020 930105 ECONOMY NEW CONSTRUCTION OUTLAYS INCREASED 21 IN NOVEMBER BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW CONSTRUCTION SPENDING ROSE 21 IN NOVEMBER ON GAINS IN BOTH PRIVATE AND GOVERNMENT OUTLAYS THE COMMERCE DEPARTMENT REPORTED THE INCREASE TO A 4418 BILLION ANNUAL RATE FOLLOWED A REVISED 08 INCREASE IN OCTOBER THE NOVEMBER SPENDING LEVEL WAS 101 ABOVE THE YEAREARLIER TOTAL AND WAS THE HIGHEST SINCE AUGUST 1990 WHEN SPENDING REACHED A 4433 BILLION ANNUAL RATE THE DEPARTMENT SAID CONSTRUCTION WAS A RELATIVELY STRONG FACTOR IN THE SLUGGISH 1992 ECONOMY REBOUNDING FROM A 1991 SLUMP FOR THE YEAR THROUGH NOVEMBER NEW CONSTRUCTION SPENDING TOTALED 3939 BILLION 6 AHEAD OF THE FIRST 11 MONTHS OF 1991 DURING NOVEMBER SPENDING ROSE FOR MOST TYPES OF PRIVATE CONSTRUCTION INCLUDING GAINS OF 3 FOR NEW SINGLEFAMILY HOMES 2 FOR INDUSTRIAL BUILDINGS AND 3 FOR HOSPITALS AND OTHER INSTITUTIONS CONSTRUCTION OF SINGLEFAMILY HOMES RAN AT AN ANNUAL RATE OF 1265 BILLION UP FROM A RATE OF 1227 BILLION IN OCTOBER THE INCREASES OFFSET A CONTINUED DECLINE IN CONSTRUCTION OF APARTMENT BUILDINGS PUBLIC CONSTRUCTION SPENDING ROSE 3 IN NOVEMBER TO A 1222 BILLION ANNUAL RATE A GAIN OF 13 IN HIGHWAY SPENDING AND SMALLER INCREASES IN HOSPITALS PUBLIC HOUSING CONSERVATION SYSTEMS AND WATER FACILITIES HELPED COMPENSATE FOR DECLINES IN SPENDING ON SCHOOLS SEWER SYSTEMS AND OTHER PUBLIC PROJECTS ALL MONTHLY FIGURES WERE ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9301050019 930105 WHO'S NEWS HAMPTONS BANCSHARES INC HAMPTONS BANCSHARES INC SOUTHAMPTON NY RONALD M KRAWCZYK WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS BANK HOLDING COMPANY SUCCEEDING JOHN F KIDD MR KRAWCZYK 42 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT AND CONTINUES AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AT THE BANK OF THE HAMPTONS UNIT MR KRAWCZYK WAS ALSO NAMED A DIRECTOR OF THE PARENT INCREASING THE BOARD TO 11 MEMBERS MR KIDD 61 WHO WAS RECENTLY NAMED VICE CHAIRMAN CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OF THE BANK BRUCE COLLINS 62 CONTINUES AS CHAIRMAN OF THE PARENT AND THE BANK SEPARATELY FRANK D FILIPO 41 WAS NAMED AN EXECUTIVE VICE PRESIDENT AND WILL CONTINUE AS SENIOR LOAN OFFICER 9301050018 930105 WHO'S NEWS TEXTRON INC TEXTRON INC PROVIDENCE RI RICHARD A MCWHIRTER WAS NAMED CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS DIVERSIFIED CONCERN MR MCWHIRTER 58 YEARS OLD HAS BEEN TEXTRON'S SENIOR VICE PRESIDENT AND SECRETARY HE SUCCEEDS DENNIS G LITTLE 57 WHO LEFT THE COMPANY TO PURSUE PERSONAL INTERESTS MR MCWHIRTER WAS SENIOR VICE PRESIDENT AT EXCELLO CORP TROY MICH WHEN TEXTRON ACQUIRED THE COMPANY IN 1986 9301050017 930105 THEY'RE PLAYING A GAME OF CHICKEN TO DECIDE WHO RULES THE ROOST BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN KENNY ROGERS TURNED FROM GAMBLER TO CHICKEN ROASTER HE MIGHT HAVE RUFFLED A FEW FEATHERS TOO MANY THE SINGER'S CHAIN OF 35 RESTAURANTS CALLED KENNY ROGERS ROASTERS WOOD ROASTED CHICKEN IS BEING SUED FOR ALLEGEDLY KNOCKING OFF THE SPICES AND OTHER CULINARY SECRETS OF CLUCKERS WOOD ROASTED CHICKEN INC THE SUIT FILED IN US DISTRICT COURT IN MIAMI ASKS FOR PUNITIVE DAMAGES OF MORE THAN 10 MILLION AND OTHER UNSPECIFIED DAMAGES FROM ROASTERS LTD A CLOSELY HELD FORT LAUDERDALE FLA FIRM IN WHICH MR ROGERS IS A PARTNER CLUCKERS COMPLAINS THAT KENNY'S CHICKEN AND PARSLEY POTATOES TASTE STRIKINGLY LIKE THE STUFF SERVED IN ITS OWN FOUR STORES IN MIAMI OTHER THAN A FEW PHOTOS OF KENNY ROGERS CLUCKERS SAYS THE STORES ARE THE SAME RIGHT DOWN TO THE WOODEN DECOR AND THE OPEN GRILLS PACKED WITH SIZZLING BIRDS BUT ROASTERS SAYS IT'S NO CLUCKER CLUCKERS HAS A BIG CARTOON CHICKEN ON THE WALL SAYS ACE BLACKBURN JR ATTORNEY FOR ROASTERS KENNY ROGERS DOESN'T LOOK LIKE CLUCKERS TALK LIKE CLUCKERS OR WALK LIKE CLUCKERS JOHN Y BROWN FORMER GOVERNOR OF KENTUCKY AND NOW CHIEF EXECUTIVE AND CHAIRMAN OF ROASTERS SAYS THE SUIT IS HORSEFEATHERS FROM A JEALOUS COMPETITOR THE FLAP AROSE AFTER MR BROWN TRIED TO BUY CLUCKERS'S FIRST STORE SAYS CLUCKERS ATTORNEY ERIC ISICOFF CLUCKERS SHARED CONFIDENTIAL RECIPES AND GAVE MR BROWN A VIDEOTAPE OF THE STORE MR ISICOFF SAYS MR BROWN SAYS HE DECIDED NOT TO BUY THE CLUCKERS STORE WHEN HE LEARNED ABOUT COMING ROAD WORK IN FRONT OF IT MR BROWN DOESN'T DENY THAT HE HAS WORKED CLOSELY WITH CLUCKERS BUT HE SAYS HE'S A CHICKEN PIONEER IN HIS OWN RIGHT HE NOTES THAT HE WAS CHAIRMAN OF KENTUCKY FRIED CHICKEN IN THE 1960S AND HELPED HIS WIFE TV PERSONALITY PHYLLIS GEORGE SELL CHICKEN BY GEORGE ENTREES IN SUPERMARKETS NONFRIED CHICKEN IS THE TREND OF THE FUTURE SAYS MR BROWN ROASTERS SAYS KENNY ROGERS IS ITS MAIN ATTRACTION NOWHERE ELSE CAN PEOPLE EAT KENNY'S COBBLER APPLE OR CHERRY OR KENNY'S FAMOUS MUFFINS WHICH TASTE LIKE STUFFING AND HE HAS DONATED COPIES OF HIS PLATINUM RECORDS FOR THE WALLS THAT HASN'T CONVINCED THE COOKS AT CLUCKERS THAT MR ROGERS IS A ROASTING SUCCESS IN HIS OWN RIGHT MR ISICOFF SAYS YOU NEED SOMETHING MORE THAN A SMILE AND A GOOD VOICE 9301050016 930105 WORLD MARKETS TOKYO PRICES END MIXED ON DARKER SENTIMENT SHARES FIRM IN LONDON AND SINK IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES ENDED MIXED MONDAY AS THE NEW YEAR DIDN'T BRING ANY IMPROVEMENT IN MARKET SENTIMENT LONDON SHARES FIRMED IN A SESSION DOMINATED BY FUTURESRELATED BUYING FRANKFURT EQUITIES ENDED BROADLY LOWER AS PROFITTAKERS MOVED IN IN TOKYO'S HALFDAY SESSION THAT OPENED THIS YEAR'S TRADING THE NIKKEI 225STOCK INDEX ROSE 6913 POINTS TO 1699408 THAT FOLLOWED A 36069POINT OR 21 LOSS ON WEDNESDAY WHEN THE INDEX ENDED THE 1992 TRADING YEAR AT 1692495 IN EARLY TRADING TUESDAY IN TOKYO THE NIKKEI FELL 2518 POINTS TO 1696890 MONDAY'S FIRST SECTION VOLUME WAS ESTIMATED AT 100 MILLION SHARES DOWN FROM THE SLIM 1138 MILLION SHARES WEDNESDAY WHICH ALSO WAS A HALF DAY OF TRADING RETREATING ISSUES OUTNUMBERED ADVANCING ISSUES 472356 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH DROPPED 1872 POINTS IN THE PREVIOUS SESSION DECLINED 185 TO 130581 DEALERS AND ARBITRAGERS LED MONDAY'S ACTIVITY WITH INDIVIDUALS AND INSTITUTIONAL INVESTORS MOSTLY ON THE SIDELINES JAPAN'S PUBLIC PENSION FUNDS GAVE THE MARKET SUPPORT WITH PURCHASES AT THE OPENING AND AGAIN LATER WHEN THE NIKKEI SAGGED A LACK OF FRESH NEWS OR INCENTIVES LEFT THE NIKKEI TO WAFFLE IN DIRECTIONLESS ACTIVITY SOME TOKYO PARTICIPANTS SAID SENTIMENT WAS DARKENING AS MANY INVESTORS WERE GIVING UP HOPE THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE SOON A RATE CUT COULD BRING FRESH CASH INTO THE EQUITIES MARKET TRADERS ALSO WERE RELUCTANT TO STAKE MAJOR POSITIONS AHEAD OF THE FRIDAY'S SPECIAL QUOTATIONS TO SETTLE JANUARY INDEX OPTIONS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 150 POINTS TO 28615 THAT WAS OFF THE INTRADAY PEAK OF 28679 WHICH MARKED A NEW TRADING HIGH FOR THE INDEX WITH THE RETREAT RESULTING FROM MILD PROFITTAKING THE FT 30STOCK INDEX GAINED 247 POINTS OR 11 TO 22099 VOLUME WAS A MODERATELY ACTIVE 6066 MILLION SHARES COMPARED WITH 2289 MILLION SHARES IN THE PREVIOUS SESSION PRICES DROPPED IN THE EARLY GOING BUT MOVED HIGHER THROUGHOUT MOST OF THE DAY ON STRONG BUYING INTEREST IN MARCH STOCKINDEX FUTURES THE MARKET'S LATE1992 RALLY APPEARED TO BE MAINTAINING SPEED WITH INVESTORS PICKING UP STOCKS THAT ARE CONSIDERED UNDERPERFORMERS OR THAT WILL BENEFIT MOST FROM A BRITISH ECONOMIC REVIVAL MOST IN DEMAND WERE SMALLERCAPITALIZATION ISSUES STOCKS ALSO WERE PROPELLED HIGHER BY HOPES FOR AN INTERESTRATE CUT BY GERMANY'S CENTRAL BANK WHEN ITS POLICYMAKING COUNCIL MEETS THURSDAY INVESTORS ALSO WERE BOLSTERED BY A STATEMENT SUNDAY BY BRITISH PRIME MINISTER JOHN MAJOR THAT THE POUND WOULD REMAIN OUTSIDE EUROPE'S EXCHANGE RATE MECHANISM THIS YEAR WHICH WAS INTERPRETED AS GIVING THE GOVERNMENT MORE ROOM FOR FURTHER INTERESTRATE CUTS BRITISH FUND MANAGERS CONTINUED TO HANG ON TO STOCKS ANTICIPATING THAT PRICES WILL CONTINUE TO MARCH HIGHER AND A SURGE HIGHER ON WALL STREET IN THE OPENING MINUTES BOOSTED LONDON SENTIMENT IN FRANKFURT THE DAX 30STOCK INDEX FELL 1372 POINTS TO 153133 NEAR THE INTRADAY LOW OF 153047 IN LAST WEEK'S THREE SESSIONS THE AVERAGE MOVED SHARPLY HIGHER AS FUND MANAGERS BOUGHT STOCKS THAT HAD PERFORMED WELL LAST YEAR TO DRESS UP THEIR PORTFOLIOS AFTER THAT RALLY AND WITH NEW SPECULATION ABOUT EUROPEAN FOREIGN EXCHANGE PROFITTAKERS MOVED IN SPECULATORS IN FRANKFURT AGAIN TURNED THEIR ATTENTION TO THE FRENCH FRANC AND A POSSIBLE BREAK OF THE POLICY LINK WITH THE GERMAN MARK UNDER EUROPE'S EXCHANGERATE BASKET WHICH WOULD MAKE GERMAN EXPORTS TO FRANCE LESS COMPETITIVE AND FURTHER WEAKEN GERMANY'S ECONOMY FRANKFURT MARKET SENTIMENT WASN'T AFFECTED BY THE WEEKEND RESIGNATION OF GERMAN ECONOMICS MINISTER JUERGEN MOELLEMANN WHO WASN'T CONSIDERED POPULAR IN THE BUSINESS COMMUNITY SOME FRANKFURT PARTICIPANTS SPECULATED THAT THE ANTICIPATED JANUARY RALLY COULD COME IN THE SECOND HALF OF THE MONTH PORTFOLIO MANAGERS WERE SAID TO BE SITTING ON CASH AND MANY ARE EXPECTED TO DETERMINE THEIR INITIAL 1993 INVESTMENT STRATEGY IN THE NEXT TWO WEEKS ELSEWHERE IN EUROPE PARIS SHARE PRICES WEAKENED IN EXTREMELY LIGHT TRADING AS INVESTORS WERE UNCERTAIN ABOUT THE OUTLOOK FOR THE FRENCH FRANC THE MARKET HAD BEEN ANTICIPATING A RUN ON THE FRANC AFTER THE CHRISTMAS BREAK BUT THE CURRENCY APPEARED TO BE GAINING SOME SUPPORT FROM THE INTERNAL PROBLEMS OF THE GERMAN GOVERNMENT AND THE FIRMNESS OF THE DOLLAR PRICES FIRMED IN MILAN AS STOCKS BENEFITED FROM THE MARKET'S TRADITIONAL NEWYEAR EUPHORIA MADRID EQUITIES GAINED BUT VOLUME WAS LOW AHEAD OF YET ANOTHER SPANISH HOLIDAY TOMORROW STOCKHOLM PRICES RALLIED LARGELY BECAUSE OF THE STRONGER DOLLAR WITH BLUECHIP EXPORTERS RACKING UP THE BIGGEST GAINS ZURICH SHARES ALSO POSTED WIDE ADVANCES AS BUYERS DOMINATED THE THIN MARKET THE DOLLAR'S STRENGTH ALSO AIDED EXPORTORIENTED COMPANIES IN SWITZERLAND IN SYDNEY STOCKS ROSE ON GAINS BY BLUE CHIPS IN THIN DEALINGS SINGAPORE SHARES CLOSED MIXED HURT BY PROFITTAKING AND A FREEZE ON FACTORY RENTS BY THE GOVERNMENT'S GIANT INDUSTRIAL LAND OWNER WHICH PRESSURE PROPERTY GROUPS DOWN THE MARKET DIDN'T RESPOND STRONGLY TO WEEKEND NEWS THAT CORPORATE TAX RATES WILL BE CUT OVER THE NEXT FEW YEARS HONG KONG STOCKS EASED AMID ANEMIC TURNOVER ON CONCERN ABOUT THE COLONY'S POLITICAL SITUATION IN THE REVERSION OF THE BRITISH COLONY TO CHINESE SOVEREIGNTY IN 1997 WEEKEND REPORTS QUOTED THE CHINESE OFFICIAL IN CHARGE OF HONG KONG AFFAIRS AS AGAIN MAKING THREATS ABOUT THE DEMOCRATIC PROPOSALS BY THE COLONY'S GOVERNOR SEOUL PRICES CLIMBED BROADLY ON CONTINUING OPTIMISM FOR 1993 SECURITIES FIRMS AND BANKS ADVANCED STRONGLY AND CONSTRUCTION SHARES GAINED ON EXPECTATIONS FOR SOUTH KOREAN GOVERNMENT ACTION TO BOOST THE ECONOMY MANILA SHARES GAINED HANDILY ON POSITIVE CORPORATE DEVELOPMENTS BUT OIL ISSUES FELL ON PROFITTAKING 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 9301050015 930105 FILENET TO POST SURPRISE LOSS FOR 4TH PERIOD BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL COSTA MESA CALIF FILENET CORP CITING A SUDDEN DROP IN ORDERS SAID IT EXPECTS TO REPORT A LOSS OF 99 MILLION FOR THE FOURTH QUARTER ENDED SUNDAY INCLUDING 49 MILLION IN ONETIME CHARGES THE COMPANY ALSO SAID IT WILL TERMINATE MORE THAN 10 OF ITS EMPLOYEES THE COMPUTER SOFTWARE CONCERN'S SURPRISE ANNOUNCEMENT SENT ITS STOCK PLUNGING ABOUT 34 IN OVERTHECOUNTER TRADING YESTERDAY THE PROJECTED FOURTHQUARTER LOSS EQUALS 94 CENTS A SHARE THE CHARGES AMOUNTING TO 47 CENTS A SHARE REPRESENT ASSET WRITEDOWNS AND EMPLOYEE SEVERANCE COSTS THE COMPANY SAID A YEAR EARLIER FILENET POSTED NET INCOME OF 33 MILLION OR 30 CENTS A SHARE ON REVENUE OF 37 MILLION FILENET ADDED THAT IT EXPECTS TO REPORT A 9 DROP IN REVENUE IN THE LATEST QUARTER TO 335 MILLION FILENET ATTRIBUTED THE UNEXPECTEDLY POOR RESULTS TO AN UNUSUAL NUMBER OF CUSTOMERS NOTABLY IN EUROPE WHO DELAYED PURCHASE DECISIONS IN THE FINAL WEEKS OF THE QUARTER WE WERE SURPRISED BY THE SHORTFALL IN SALES SAID TED SMITH PRESIDENT AND CHIEF OPERATING OFFICER ANALYSTS SAID THE COMPANY WHICH MAKES ELABORATE SOFTWARE THAT AUTOMATES THE MANAGEMENT OF DOCUMENTS IN FINANCIAL AND OTHER OPERATIONS APPEARS TO HAVE RUN INTO THE EFFECTS OF SLOW ECONOMIES NOT ONLY IN GERMANY AND ELSEWHERE IN EUROPE BUT ALSO IN CALIFORNIA THE ANALYSTS NOTED THAT FILENET'S RELATIVELY EXPENSIVE SYSTEMS AT AN AVERAGE PRICE OF ABOUT 500000 EACH ARE HARD TO SELL IN DIFFICULT TIMES CLEARLY THIS WAS A SHOCK TO MANAGEMENT AS IT WAS TO THE MARKET SAID STEVEN MILUNOVICH AN ANALYST AT MORGAN STANLEY & CO MR MILUNOVICH SAID HE HAD BEEN PROJECTING FOURTHQUARTER NET OF BETWEEN 30 CENTS AND 35 CENTS A SHARE FOR FILENET YESTERDAY'S ANNOUNCEMENT WAS ONLY THE LATEST STUMBLE THE COMPANY'S SECONDQUARTER PROFIT ALSO CAME IN SHARPLY BELOW ANALYSTS' EXPECTATIONS THE COMPANY'S STOCK WHICH CLOSED YESTERDAY AT 15 OFF 775 ON HEAVY VOLUME OF MORE THAN TWO MILLION SHARES HAS TRADED AS HIGH AS 3750 A SHARE IN THE PAST 12 MONTHS AND AS LOW AS 1050 YESTERDAY'S VOLUME THE THIRD HIGHEST ON THE NATIONAL MARKET SYSTEM WAS THE EQUIVALENT OF NEARLY 20 OF THE COMPANY'S STOCK OUTSTANDING MARK ST CLARE FILENET'S CHIEF FINANCIAL OFFICER SAID THE COMPANY PLANS TO TERMINATE BETWEEN 10 AND 15 OF ITS 1000 EMPLOYEES IN REDUCTIONS THAT WILL PRETTY MUCH CUT ACROSS THE COMPANY HARDWARE MANUFACTURING AND SERVICE OPERATIONS ARE TO BE REDUCED HE SAID EXCLUDING SPECIAL CHARGES FILENET SAID IT EXPECTS TO REPORT FOURTHQUARTER OPERATING LOSSES OF ABOUT 5 MILLION OR 47 CENTS A SHARE THE COMPANY ANTICIPATES THAT THE LOSS FOR THE YEAR ENDED SUNDAY WILL TOTAL 62 MILLION OR 59 CENTS A SHARE COMPARED WITH NET INCOME OF 81 MILLION OR 75 CENTS A SHARE IN THE PREVIOUS YEAR OPERATING LOSSES FOR THE YEAR WILL TOTAL ABOUT 13 MILLION OR 12 CENTS A SHARE THE COMPANY SAID REVENUE IS EXPECTED TO INCREASE 14 TO ABOUT 140 MILLION FROM 1225 MILLION 9301050014 930105 WORKPLACE BOSSES SEEK WAYS TO HOLD ON TO WORKERS AS RECOVERY ENCOURAGES JOB HOPPING BY JULIE AMPARANO LOPEZ AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL AS THE ECONOMIC WINDS SHIFT BOSSES ARE SCRAMBLING TO KEEP DEMORALIZED EMPLOYEES FROM JUMPING SHIP EMPLOYERS FEAR THAT MANY OF THEIR RECESSIONWEARY CREW MAY JOB HOP AS THE RECOVERY GATHERS MOMENTUM BUT WITH LITTLE MONEY TO PAY RAISES MORE COMPANIES ARE TURNING TO OTHER TECHNIQUES TO BOOST LOYALTY AND MORALE SOME BIG BUSINESSES NOW PROVIDE COPING SEMINARS FOR ANXIOUS SURVIVORS OF LAYOFFS OTHERS ATTEMPT TO MAKE TRAPPED STAFF MEMBERS FEEL AS THOUGH THEY'RE STILL GETTING AHEAD THROUGH TEMPORARY JOB ROTATIONS A FEW CORPORATIONS HAVE INTRODUCED MENTORING PROGRAMS FOR HIGH PERFORMERS UNLIKE PAST EFFORTS WHICH WERE OFTEN LIMITED TO WOMEN AND MINORITIES THESE PROGRAMS MATCH A WIDE RANGE OF PROMISING PROFESSIONALS WITH MIDDLE MANAGERS KPMG PEAT MARWICK IS TRYING TO ANCHOR ITS WORKERS IN THE MIDST OF A MAJOR RESTRUCTURING BY OFFERING APPRECIATION SERVICES AMONG OTHER THINGS THE SERVICES INCLUDE DRY CLEANING PICKUP AT THE OFFICE AND FREE WEEKEND BABYSITTING DURING TAX SEASON EVERYONE IS TRYING TO FIGURE OUT HOW TO MOTIVATE AND RETAIN EMPLOYEES IN THIS ATMOSPHERE SAYS MARY L DUPONT THE BIG ACCOUNTING FIRM'S PARTNER IN CHARGE OF HUMAN RESOURCES IT'S OUR NO 1 CONCERN THE NEED IS REAL CORPORATE DOWNSIZING HAS BATTERED THE SURVIVORS OF LAYOFFS ALONG WITH THE VICTIMS WORKLOADS HAVE GROWN BUT PAY INCREASES AND PERQUISITES HAVE SHRUNK AND PROMOTIONS HAVE ALMOST DISAPPEARED AS ORGANIZATIONS HAVE FLATTENED YET MOST PEOPLE HAVE STAYED PUT NOTES MARILYN MOATS KENNEDY A CAREERSTRATEGY CONSULTANT IN WILMETTE ILL NOW THAT GRIM PICTURE IS CHANGING THE UNEMPLOYMENT RATE HAS DROPPED EVERY MONTH SINCE IT HIT AN EIGHTYEAR HIGH OF 78 IN JUNE IN NOVEMBER 105000 JOBS WERE CREATED ACROSS A VARIETY OF INDUSTRIES ACCORDING TO THE US LABOR DEPARTMENT AND THE HIRING OUTLOOK FOR THE FIRST QUARTER IS THE BRIGHTEST IN 2 1/2 YEARS CONCLUDES MANPOWER INC'S LATEST CANVASS OF MORE THAN 15000 EMPLOYERS THAT'S NUDGING THE DOWNTRODDEN TO GET UP AND GO RECRUITER KORN/FERRY INTERNATIONAL REPORTS THAT IT RECEIVES ABOUT 2000 RESUMES A WEEK MAINLY FROM EMPLOYED EXECUTIVES LOOKING FOR GREENER PASTURES THE FIGURE REPRESENTS MORE THAN A 50 INCREASE FROM A YEAR AGO A KORN/FERRY OFFICIAL SAYS THERE ARE GOING TO BE SKID MARKS ON THE FLOOR WHEN I FIND A NEW JOB CONFESSES LK PERALLA A 42YEAROLD MANAGER AT AN ARIZONA HIGHTECHNOLOGY COMPANY DURING THE PAST THREE YEARS MR PERALLA SAYS HIS STAFF HAS BEEN CUT IN HALF AND HIS CLIENT LIST HAS ALMOST DOUBLED MEANWHILE ANNUAL BONUSES HAVE BEEN SUSPENDED THE RESTLESS MANAGER SAYS THAT HE FEELS UNDERPAID AND IS LOOKING FOR HAPPIER HORIZONS A 49YEAROLD SECURITIESINDUSTRY EXECUTIVE AGREES NOTING IT'S TIMES LIKE THESE THAT APPEAL TO THE WANDERLUST OF MANAGERS THOUGH EMPLOYED BY THE SAME NEW YORK COMPANY FOR 15 YEARS HE IS MULLING A JOB SWITCH COMPANIES ARE IN DANGER OF LOSING THEIR BEST AND BRIGHTEST WARNS DEE SODER PRESIDENT OF ENDYMION CO AN EXECUTIVEADVISORY CONCERN IN NEW YORK OF COURSE ALMOST ANY COMPANY WILL AWARD BONUSES OR PAY INCREASES TO KEEP STAR PERFORMERS FROM DEFECTING BUT EMPLOYERS ARE GENERALLY HOLDING THE LINE ON SALARIES AND SEVERAL SURVEYS SUGGEST THAT THE AVERAGE SIZE OF RAISES IN 1993 WILL DECLINE FOR THE THIRD STRAIGHT YEAR A GROWING NUMBER OF BUSINESSES ARE FOCUSING ON REBUILDING MORALE TO TRY TO RETAIN EMPLOYEES HONEYWELL INC PACIFIC TELESIS GROUP AND KRAFT GENERAL FOODS INC HAVE ALL RECENTLY LAUNCHED SEMINARS FOR LAYOFF SURVIVORS FOR EXAMPLE DRAKE BEAM MORIN A UNIT OF GENERAL CINEMA CORP CONDUCTED HALFDAY COPING WITH CHANGE SESSIONS FOR ABOUT TWO DOZEN CONCERNS IN 1992 SAYS PHILIP SIMSHAUSER THE OUTPLACEMENT CONCERN'S WEST COAST PRESIDENT IN 1991 WE WERE HARDLY DOING THEM AT ALL DEMAND HAS SPURRED OTHER OUTPLACEMENT CONCERNS TO OFFER SUCH SEMINARS MORE THAN HALF PROVIDE THEM UP FROM A HANDFUL FIVE YEARS AGO ESTIMATES NICOLE MILLMAN OF THE ASSOCIATION OF OUTPLACEMENT CONSULTING FIRMS THE SESSIONS HELP EMPLOYEES VENT THEIR ANXIETIES ABOUT FUTURE JOB CUTS AND FIGURE OUT NEW WAYS TO ADVANCE CORPORATE CLIENTS SEEK THE PROGRAMS WHICH OFTEN COST 2000 OR MORE A DAY FOR 10 PEOPLE PARTLY BECAUSE THEY HAVE SOME CONCERN ABOUT RETAINING EMPLOYEES SAYS MARY DAVIS A MANAGING DIRECTOR FOR JANOTTA BRAY & ASSOCIATES A CHICAGO OUTPLACEMENT FIRM A PACIFIC TELESIS MIDDLE MANAGER WHO RECENTLY ATTENDED A CHANGE WORKSHOP SAYS THAT IT FORCED HIM TO LOWER HIS CAREER EXPECTATIONS AND LEFT HIM DEPRESSED MY CHANCES FOR RISING TO THE TOP OF THE COMPANY BASICALLY ARE REMOTE THE MANAGER SAYS WITH A TRACE OF REGRET I CAN'T CLIMB UP THE LADDER BUT I CAN GO ACROSS IT IT IS DIFFICULT FOR MANY BABY BOOMERS TO REDUCE THEIR CAREER ASPIRATIONS THEY GREW UP IN VERY PROSPEROUS TIMES EXPLAINS ROBERT GANDOSSY A COMPENSATION DIRECTOR FOR CONSULTANTS HEWITT ASSOCIATES TRYING TO TELL THEM TO LOWER THEIR EXPECTATIONS AND WORK ON BROADENING THEIR SKILLS IS A HARD SELL AS A RESULT COUNSELING LAYOFF SURVIVORS MAY BE INSUFFICIENT TO STEM A RENEWED TIDE OF JOB HOPPING SOME MANAGEMENT EXPERTS WARN SMART BUSINESSES ARE NOT ONLY GOING TO HELP PEOPLE COPE WITH LAYOFFRELATED STRESS BUT MOBILIZE THEM IN NEW WAYS SAYS DEBORAH CORNWALL MANAGING VICE PRESIDENT OF KORN/FERRY'S ORGANIZATIONAL CONSULTING ARM THE ISSUE THAT WILL DETER JOB HOPPING IS WHETHER MY COMPANY IS WISE ENOUGH TO GET ME INVOLVED IN HELPING TO REBUILD AFTER IT DOWNSIZES MS CORNWALL CONTINUES CORE BUSINESS SCOTT PAPER CO REALIZED THAT ITS STAFF MEMBERS NEEDED MORE THAN A MORALE BOOST FOLLOWING A SIGNIFICANT CUTBACK LAST JANUARY THE PHILADELPHIA COMPANY SLASHED ITS GLOBAL WORK FORCE OF 37000 BY 3800 EMPLOYEES IT HAD ELIMINATED MORE THAN 2000 JOBS IN 1991 THE LAYOFFS WERE PART OF ITS EFFORTS TO FOCUS ON ITS CORE BUSINESSPERSONAL CARE CLEANING PRODUCTS AND QUALITY COATED PRINTING AND PUBLISHING PAPERS AFTER OFFERING SURVIVORS HALFDAY SEMINARS ON MANAGING PERSONAL CHANGE ALONG WITH SPECIAL LEADERSHIP SESSIONS FOR SUPERVISORS SCOTT PAPER BEGAN STRATEGIC ROADMAP WORKSHOPS WORLDWIDE PHILIP E LIPPINCOTT CHAIRMAN AND CHIEF EXECUTIVE AND OTHER TOP EXECUTIVES HAVE HELD ABOUT 20 OF THESE SESSIONS SINCE MARCH MOSTLY IN THE US TO EXPLAIN INTENSIFIED COMPETITIVE PRESSURES AND SCOTT PAPER'S NEW CORPORATE VISION EACH WORKSHOP INVOLVES ABOUT 75 INDIVIDUALS FROM HOURLY WORKERS TO SENIOR MANAGERS WE'VE NEVER HAD THIS KIND OF EXTENSIVE INVOLVEMENT OF PEOPLE BEFORE SAYS BARBARA RICE HUMANRESOURCES VICE PRESIDENT ONE RESULT TURNOVER HAS NOT BEEN ANY GREATER THAN NORMAL YET EVEN SCOTT PAPER'S BROAD EFFORTS MAY NOT PREVENT A PICKUP IN TURNOVER BECAUSE MANY EMPLOYEES STILL FEEL OVERWORKED THE WORK DIDN'T GO AWAY IF ANYTHING IT INCREASED SAYS MIKE CORD MANAGER OF THE COMPANY'S COMMERCIAL BUSINESS REVENUE CENTER TWO OF HIS NINE WORKERS LOST THEIR JOBS LAST JANUARY HE DOESN'T EXPECT ANY REMAINING SUBORDINATES TO QUIT SOON BUT CONCEDES THAT YOU MIGHT SEE IT HAPPEN IN OTHER DEPARTMENTS SO NOW SCOTT PAPER IS HELPING PEOPLE FIND WAYS TO SHED UNNECESSARY WORK CONTINENTAL INSURANCE CO AND SEVERAL OTHER EMPLOYERS ARE USING NEW MENTORING PROGRAMS TO KEEP HIGH PERFORMERS FROM HEADING OUT THE DOOR ROBERT E CATALANO A CONTINENTAL REGIONAL VICE PRESIDENT IN SACRAMENTO CALIF LAUNCHED SUCH A PROGRAM IN NOVEMBER FOR PROFESSIONALS AND CLERICAL WORKERS THERE PARTICIPANTS WHO ARE BEING COACHED BY EXPERIENCED MANAGERS ALREADY SEEM MORE COMMITTED AND MOTIVATED HE SAYS ANOTHER CONTINENTAL INSURANCE PROGRAM COMBINES MENTORING WITH TEMPORARY ROTATIONS THE EFFORT DISSUADED CECIL SILVER FROM LOOKING FOR A NEW JOB THE MIDDLE MANAGER SAYS SHE FELT STUCK HANDLING CLIENT REHABILITATION SERVICES AND THE PROGRAM PROVIDED NEW CHALLENGES AT A TIME WHEN PROMOTIONS WERE HARD TO GET EMPLOYEE COUNCILS ARE ANOTHER WAY THAT COMPANIES INEXPENSIVELY BOOST EMPLOYEE CONFIDENCE AND KEEP A PULSE ON MORALE COUNCILS RECENTLY CREATED AT PEAT MARWICK AND CONTINENTAL INSURANCE FOCUS ON SUCH ISSUES AS PROFESSIONAL DEVELOPMENT AND ADVANCEMENT IN AN ERA OF SCARCE PROMOTIONS EXPLAINS PEAT MARWICK'S MS DUPONT WE WANT EMPLOYEES TO KNOW WE CARE 9301050012 930105 WHO'S NEWS CITIBANK EXOFFICIAL IS NAMED PRESIDENT OF A FLEET SUBSIDIARY PROVIDENCE RI FLEET FINANCIAL GROUP INC NAMED FREDERICK C COPELAND JR THE FORMER HEAD OF CITICORP'S CANADIAN UNIT AS PRESIDENT AND A DIRECTOR OF ITS FLEET BANK NA UNIT IN CONNECTICUT THE APPOINTMENT OF MR COPELAND 51 YEARS OLD EXPANDS THE FLEET BANK NA BOARD TO 13 MEMBERS THE POST OF PRESIDENT IS NEWLY CREATED MR COPELAND WILL REPORT TO ROBERT J HIGGINS 47 WHO IS CHAIRMAN AND CHIEF EXECUTIVE OF THE UNIT MR COPELAND'S RESIGNATION AS PRESIDENT AND CHIEF EXECUTIVE OF CITIBANK CANADA WAS REPORTED IN JUNE BUT DIDN'T BECOME EFFECTIVE UNTIL THE END OF LAST MONTH WHEN HIS RESIGNATION WAS ANNOUNCED SOME CITICORP OBSERVERS SPECULATED THAT HIS DEPARTURE WAS RELATED TO LOANS MADE TO OLYMPIA & YORK DEVELOPMENTS LTD THE TROUBLED CANADIAN REALESTATE CONCERN MR COPELAND OVERSAW THE BANK'S OPERATIONS IN CANADA AT A TIME WHEN IT EXTENDED FINANCING TO O&Y O&Y IS OPERATING UNDER BANKRUPTCYLAW PROTECTION IN CANADA AND ITS BRITISH OPERATIONS ARE UNDER COURT ADMINISTRATION IN THE US THE COMPANY IS NEGOTIATING WITH CREDITORS TO RESTRUCTURE ITS DEBT WITHOUT GOING THROUGH BANKRUPTCY COURT MR COPELAND CONFIRMED YESTERDAY THAT HIS RESIGNATION WAS RELATED TO FINANCING EXTENDED TO OLYMPIA & YORK AND SAID HIS DEPARTURE WAS BY MUTUAL AGREEMENT WITH THE COMPANY HE NOTED HOWEVER THAT CITIBANK HAD A RELATIONSHIP WITH O&Y FOR MANY YEARS BEFORE HE JOINED THE CANADIAN UNIT FLEET BANK'S MR HIGGINS SAID THIS IS A MAJOR STRATEGIC MOVE FOR FLEET BANK AND IT IS A POSITIVE STATEMENT OF THE CONFIDENCE THE CORPORATION HAS IN CONNECTICUT FLEET BANK IS A LITTLE MORE THAN ONE YEAR OLD AND WE ARE STARTING ON OUR NEXT YEAR WITH AN EYE ON A BRIGHT FUTURE FOR THE BANK 9301050011 930105 GENERAL NUTRITION COS PLANS PUBLIC OFFERING 4 YEARS AFTER BUYOUT PITTSBURGH GENERAL NUTRITION COS PLANS TO RETURN TO PUBLIC OWNERSHIP WITH AN INITIAL OFFERING OF AS MUCH AS 74 MILLION IN COMMON STOCK FOUR YEARS AFTER THE NATION'S LARGEST HEALTHFOOD RETAILER WENT PRIVATE IN A LEVERAGED BUYOUT GNC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 4150000 COMMON SHARES AT AN EXPECTED PRICE OF 1350 TO 1550 A SHARE IT GRANTED ITS UNDERWRITERS MORGAN STANLEY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP OVERALLOTMENT OPTIONS FOR AN ADDITIONAL 622500 SHARES THIS IS GNC'S SECOND ATTEMPT TO REDUCE ITS INDEBTEDNESS THROUGH A STOCK OFFERING THE COMPANY FILED FOR AN OFFERING OF NEARLY SEVEN MILLION COMMON SHARES IN OCTOBER 1991 BUT IT BACKED DOWN BECAUSE OF A DECLINE IN STOCK PRICES SOME THINK THE COMPANY MAY DO BETTER THIS TIME GIVEN THE HISTORICALLY HIGH VALUATION OF RETAILERS IN 1992 THIS IS A GOOD OPPORTUNITY FOR RETAILERS PARTICULARLY LEVERAGED RETAILERS TO RAISE MONEY SAID JEFFREY S STEIN AN ANALYST WITH MCDONALD & CO IN CLEVELAND GNC WAS TAKEN PRIVATE IN 1989 IN A 400 MILLION BUYOUT BY THOMAS H LEE CO A BOSTON INVESTMENT GROUP THE 58YEAROLD COMPANY WHICH HAD BEEN PUBLICLY TRADED SINCE 1980 NOW HAS 1160 RETAIL STORES THAT SELL NUTRITION AND FITNESS PRODUCTS ACCORDING TO ITS PROSPECTUS GNC HAD A NARROW PROFIT FROM CONTINUING OPERATIONS IN THE 36 WEEKS ENDED OCT 10 FOLLOWING THREE YEARS OF LOSSES BETWEEN 1989 AND 1991 GNC HAD REVENUE OF 3936 MILLION IN 1991 GNC WITH 299 MILLION IN TOTAL DEBT WILL USE PROCEEDS FROM THE OFFERING TO REDEEM ITS 442 MILLION OF 125 SERIES A PREFERRED STOCK AND TO REPAY SOME OF ITS 100 MILLION IN BANK DEBT 9301050010 930105 WHO'S NEWS HEALTH IMAGES NAMES CHIEF OF OPERATIONS SAYS TWO AIDES LEFT ATLANTA HEALTH IMAGES INC AS PART OF A MANAGEMENT RESTRUCTURING NAMED AN INSIDER TO THE NEW POST OF CHIEF OPERATING OFFICER AND SAID THAT TWO SENIOR OFFICERS LEFT THE COMPANY HEALTH IMAGES WHICH OPERATES MEDICAL DIAGNOSTIC CENTERS SAID THAT WA WILSON 53 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER MR WILSON HAD BEEN EXECUTIVE VICE PRESIDENT DEVELOPMENT AND DIRECTOR OF ACQUISITIONS MEANWHILE TWO OTHER EXECUTIVES GERALD D BASSETT SENIOR EXECUTIVE VICE PRESIDENT AND SECRETARY AND RICHARD E GEIER EXECUTIVE VICE PRESIDENT CORPORATE AFFAIRS LEFT THE COMPANY ACCORDING TO ROBERT D CARL III CHAIRMAN AND PRESIDENT MR CARL SAID THAT MR BASSETT RESIGNED BUT DECLINED TO COMMENT ON MR GEIER NEITHER MR BASSETT NOR MR GEIER COULD BE REACHED FOR COMMENT MR CARL SAID THE MOVES ARE AN EFFORT TO MAKE HEALTH IMAGES A MORE EFFICIENT COMPANY WE HAD TOO MANY LAYERS OF MANAGEMENT HE SAID THE COMPANY HASN'T BEEN AS RESPONSIVE AS IT SHOULD HAVE BEEN HEALTH IMAGES HAS REPORTED EARNINGS GAINS OF LATE NET INCOME IN THE THIRD QUARTER OF 1992 ROSE 13 TO 18 MILLION OR 15 CENTS A SHARE ON REVENUE OF 18 MILLION BUT ANALYSTS NOTED THAT THE COMPANY ALONG WITH MANY HEALTHCARE PROVIDERS IS FACING DECLINING REIMBURSEMENTS FROM EMPLOYERS AND INSURERS WHICH ARE TRYING TO LIMIT THE GROWTH OF MEDICAL EXPENDITURES HEALTH IMAGES ALSO FACES COMPETITION FROM PHYSICIANS WHO HAVE AN OWNERSHIP STAKE IN DIAGNOSTIC CENTERS AND WHO REFER PATIENTS TO THOSE CENTERS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY HEALTH IMAGES CLOSED AT 9625 A SHARE UP 50 CENTS 9301050009 930105 LETTERS TO THE EDITOR A MISPLACED LAMENT FOR PROSECUTOR LAW KATY J HARRIGER'S ARGUMENT IN FAVOR OF THE SPECIAL PROSECUTOR LAW BRING BACK THE INDEPENDENT COUNSEL COUNTERPOINT DEC 17 PROVES TOO MUCH AFTER DECLARING THAT THE LAW REASSURED THE PUBLIC THAT ALLEGATIONS OF WRONGDOING BY EXECUTIVE BRANCH OFFICIALS WOULD BE INVESTIGATED IMPARTIALLY MS HARRIGER THEN GOES ON TO CITE SEVERAL EXAMPLES OF THE STUNNING ABUSES THAT THIS LAW MADE POSSIBLE CAN ANYONE REALLY REMEMBER WHAT MICHAEL DEAVER AND HAMILTON JORDAN WERE PROSECUTED FOR IN ARGUING THAT THE INDEPENDENT COUNSEL PROVISIONS REDUCED CONFLICT BY QUICKLY ENDING ALLEGATION OF PARTISANSHIP MS HARRIGER CONVENIENTLY IGNORES THE FACT THAT CALLS FOR THE APPOINTMENT OF A SPECIAL PROSECUTOR WERE RARELY ANYTHING BUT PARTISAN EXERCISES LAWRENCE WALSH AND HIS FRIENDS ON THE HILL HAVE BROUGHT US THE CRIMINALIZATION OF POLITICAL DIFFERENCES MEMBERS OF CONGRESS WHO DO NOT HESITATE TO DEMAND A SPECIAL PROSECUTOR WHEN ALLEGATIONS OF IMPROPRIETY ARE DIRECTED TOWARD EXECUTIVE BRANCH OFFICIALS DO NOT APPEAR TO BELIEVE THE PUBLIC NEEDS TO BE REASSURED BY THE APPOINTMENT OF A SPECIAL PROSECUTOR WHEN IMPROPRIETIES ARE ALLEGED AGAINST ONE OF THEIR OWN I AM STILL WAITING FOR SPEAKER FOLEY TO DEMAND A THOROUGH CRIMINAL INVESTIGATION OF THE HOUSE BANK AND POST OFFICE IT IS ALSO INTERESTING TO NOTE THAT THE VERY SAME PEOPLE WHO WALLOW IN ETHICAL AMBIGUITY AND MORAL RELATIVITY HAVE A HEIGHTENED SENSE OF RIGHT AND WRONG WHEN THE SUBJECT CONCERNS REPUBLICAN OFFICE HOLDERS THE SIMPLE FACT IS THAT THE INDEPENDENT PROSECUTOR LAW FUNCTIONED MERELY AS A PARTISAN WEDGE DRIVING APART THE EXECUTIVE AND LEGISLATIVE BRANCHES RESULTING IN THE ABUSE OF THE CRIMINAL JUSTICE PROCESS ITS DEATH IS NOT TO BE LAMENTED 9301050008 930105 CACHE INC POSTS SALES GAINS NEW YORK CACHE INC A WOMEN'S APPAREL CHAIN SAID SALES ROSE 44 FOR THE FIVE WEEKS ENDED SATURDAY TO 10 MILLION FROM 69 MILLION COMPARABLESTORE SALES ROSE 24 THE COMPANY WHICH OPERATES 93 STORES SAID IT OPENED 16 STORES DURING THE FISCAL YEAR ENDED SATURDAY 9301050007 930105 JAPAN'S NEC SAYS IT WILL OFFER PCS AT LOWER PRICES BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEC CORP JAPAN'S NO 1 PERSONAL COMPUTER MAKER SAID IT WILL OFFER ITS OWN LINE OF LOWPRICED PCS TO DEFEND ITS DOMINANCE OF THE JAPANESE MARKET AGAINST CHEAP US IMPORTS NEC'S STATEMENT COMES MONTHS AFTER INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP STARTED ATTACKING NEC'S HIGHPRICED MACHINES WITH THE SAME PRICEWAR TACTICS THAT HAVE DOMINATED THE US MARKET BUT ARE STILL RARE IN JAPAN A NEC SPOKESMAN SAID THE COMPANY HOPES TO ANNOUNCE A NEW LINE OF PCS USING INTEL CORP'S 80486 MICROPROCESSOR BY THE END OF THE MONTH THE COMPANY IS TARGETING A PRICE RANGE OF 250000 YEN TO 300000 YEN 2003 TO 2404 FOR THE NEW LINE'S LOWEND MODELS THE SPOKESMAN ADDED THAT'S ALMOST A 50 PRICE CUT FROM NEC'S EXISTING LOWEND 486BASED PC WHICH NEC RELEASED IN DECEMBER 1991 FOR 548000 YEN NEC HOLDS MORE THAN A 50 SHARE OF THE DOMESTIC MARKET THANKS TO ITS TIGHT CONTROL OVER DISTRIBUTION AND A LARGE LIBRARY OF SOFTWARE THAT RUNS ONLY ON NEC MACHINES NEC HAS COME UNDER PRESSURE NOT ONLY FROM THE US PRICE ONSLAUGHT BUT ALSO BECAUSE ITS JAPANESE COMPETITORS ARE BEGINNING TO TURN TO PCS BASED ON THE IBM STANDARD WHICH IS INCOMPATIBLE WITH THE NEC STANDARD LAST WEEK FUJITSU LTD WHICH SAYS IT HOLDS A 15 SHARE OF THE JAPANESE PC MARKET SAID IT MIGHT BEGIN OFFERING IBMCOMPATIBLE MACHINES IN JAPAN AS RECENTLY AS LAST MONTH NEC OFFICIALS STEADFASTLY DENIED ANY INTENTION TO CUT PC PRICES INSTEAD CLAIMING THAT WHAT THEY CALLED THE SUPERIOR COSTPERFORMANCE OF NEC MACHINES WOULD CONTINUE TO ATTRACT CONSUMERS EVEN NOW NEC CLAIMS IT'S NOT REACTING TO ITS US COMPETITORS WE'RE NOT REALLY LOWERING PRICE JUST IMPROVING COSTPERFORMANCE SAID THE SPOKESMAN OUTSIDERS ARE SKEPTICAL SOMEBODY NEEDED TO CUT PC PRICES IN THE JAPANESE MARKET SAID AN OFFICIAL AT COMPAQ KK THE COMPANY'S JAPANESE SUBSIDIARY FIRST COMPAQ DID IT THEN NEC ATTACKED COMPAQ THROUGH PUBLIC RELATIONS NOW THEY ARE CUTTING THEIR PRICES TOO 9301050005 930105 CREDIT QUALITY IN US REMAINED WEAK IN '92 BUT EROSION IS EASING S&P SAYS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MUNICIPAL AND CORPORATE CREDIT QUALITY IN THE US LAST YEAR CONTINUED TO BE AFFECTED BY THE RECESSION BUT THE EROSION IN BOTH SECTORS APPEARS TO BE EASING STANDARD & POOR'S CORP SAID NEVERTHELESS THE WORLDWIDE ECONOMIC SLOWDOWN CONTINUES TO AFFECT OVERSEAS CREDIT QUALITY PARTICULARLY IN THE FINANCIAL SECTORS OF EUROPE AND JAPAN THE RATING AGENCY SAID IN 1992 RATINGS WERE LOWERED ON 3776 BILLION OF CORPORATE DEBT OR 481 ISSUES AND RATINGS WERE RAISED ON 123 BILLION OF DEBT OR 252 ISSUES BASED ON PRELIMINARY DATA IN 1991 695 ISSUES TOTALING 5038 BILLION OF DEBT WERE DOWNGRADED WHILE 220 ISSUES TOTALING 1316 BILLION WERE UPGRADED IN THE FOURTH QUARTER DOWNGRADES AFFECTED 683 BILLION OF CORPORATE DEBT OR 127 ISSUES WHILE RATINGS INCREASES ACCOUNTED FOR 165 BILLION OR 54 ISSUES DOWNGRADES IN THE QUARTER WERE PACED BY INTERNATIONAL FINANCIAL INSTITUTIONS WHOSE DETERIORATING ASSET QUALITY IMPAIRED CREDIT QUALITY S&P SAID THOSE INSTITUTIONS ACCOUNTED FOR 42 OR ABOUT 29 BILLION OF RATINGS CUTS IN THE QUARTER FALLING INTEREST RATES IN THE US HELPED TO MAKE A MORE EVEN DISTRIBUTION BETWEEN DOWNGRADES AND UPGRADES FOR US INDUSTRIAL COMPANIES IN 1992 MANY COMPANIES TOOK ADVANTAGE OF FALLING RATES TO REFINANCE HIGHINTEREST DEBT AND WERE ABLE TO BOOST CAPITAL POSITIONS AND REDUCE DEBTPAYMENT LEVELS THESE ACTIONS HELPED IMPROVE OVERALL CREDITWORTHINESS S&P SAID US TRANSPORTATION INDUSTRY RATINGS HOWEVER WERE DOMINATED BY DOWNGRADES IN THE AIRLINE SECTOR WITH RATINGS ON SIX OF SEVEN NONBANKRUPT AIRLINES CUT IN MAY AND JUNE WHILE US COMPANIES GENERALLY WERE STAGING A RECOVERY THE INTERNATIONAL FINANCIAL SECTOR WAS BATTERED DURING THE YEAR THE PROLONGED GLOBAL RECESSION COMBINED WITH HIGH INTEREST RATES AND DETERIORATING ASSET VALUES ESPECIALLY IN COMMERCIAL REAL ESTATE CONTINUED TO BE A DRAG ON CREDIT QUALITY IN A NUMBER OF EUROPEAN COUNTRIES IN JAPAN THE ECONOMIC SLOWDOWN HAS SEVERELY AFFECTED CREDIT QUALITY WITH JAPANESE BANKS IN THE MIDST OF THE WORST DECLINE IN ASSET QUALITY IN MORE THAN TWO DECADES FIVE FINANCIAL INSTITUTIONS WERE DOWNGRADED DURING THE QUARTER MEANWHILE ALTHOUGH MUNICIPAL CREDIT QUALITY IN THE US CONTINUED TO BE AFFECTED BY THE SLUGGISH ECONOMY UPGRADES SHOWED A MODEST GAIN IN THE FOURTH QUARTER FOR THE YEAR RATINGS WERE LOWERED ON 478 ISSUES OF MUNICIPAL DEBT TOTALING 477 BILLION WHILE RATINGS WERE RAISED ON 478 ISSUES TOTALING 31 BILLION THE MUNICIPAL CREDIT PICTURE IN 1992 ALTHOUGH STILL WEIGHTED TOWARD DOWNGRADES SHOWED AN IMPROVEMENT FROM 1991 WHEN A RECORD 53 BILLION OF MUNICIPAL DEBT WAS DOWNGRADED AND ONLY 8 BILLION WAS UPGRADED A SPOKESMAN FOR S&P SAID TRENDS ARE IMPROVING PARTLY BECAUSE ECONOMIC CONDITIONS HAVE EASED AND PARTLY BECAUSE SOME STATES HAVE TAKEN STEPS TO GET THEIR FINANCIAL AND ECONOMIC HOUSES IN ORDER IN THE 1992 FOURTH QUARTER UPGRADES EXCEEDED DOWNGRADES IN DOLLAR VOLUME AND NUMBER OF ISSUES FOR THE SECOND TIME THIS YEAR THE FIRST TIME WAS THE SECOND QUARTER WHEN UPGRADES OUTPACED DOWNGRADES FOR THE FIRST TIME SINCE EARLY 1989 IN THE FOURTH QUARTER 48 ISSUES TOTALING 2 BILLION WERE UPGRADED WHILE 40 TOTALING 1 BILLION WERE DOWNGRADED FOR 1992 GENERALOBLIGATION DOWNGRADES OUTPACED UPGRADES WITH RATINGS ON 311 BILLION OF SUCH DEBT LOWERED COMPARED WITH 12 BILLION RAISED RATINGS ON GENERAL OBLIGATION DEBT WERE LOWERED IN THREE STATES CALIFORNIA ILLINOIS AND NEW YORK COMPARED WITH EIGHT STATES A YEAR AGO AND THE VOLUME OF UPGRADES ON THAT DEBT EXCEEDED 1991'S FIGURE BY NEARLY 11 BILLION 9301050004 930105 TECHNOLOGY BRIGHTER FORECASTS FROM WEATHERMEN ARE BEING PREDICTED BLACK & DECKER UNIT IS AWARDED CONTRACT IN MODERNIZATION OF THE US WEATHER SERVICE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATIONAL WEATHER SERVICE MAY BE EMERGING FROM ITS TECHNOLOGICAL ICE AGE THE FEDERAL AGENCY AWARDED A 227 MILLION CONTRACT FOR COMPUTER SYSTEMS IT SAYS WILL PROVIDE MORE RAPID AND ACCURATE WEATHER FORECASTS AND WARNINGS THE SYSTEMS ARE PART OF A 4 BILLION PLAN BEGUN IN 1988 TO MODERNIZE THE FORECASTING SERVICE ABOUT 2 BILLION IS RELATED TO SATELLITE SERVICES WHILE THE REMAINDER IS FOR THE SERVICE'S UPDATED RADAR SYSTEM THE AGENCY SAID ITS AVERAGE ACCURACY ON SEVERE WEATHER AND TORNADO WARNINGS CURRENTLY IS 60 HOWEVER A NEW GENERATION OF RADAR HAS BEEN ABLE TO BOOST ONE SITE'S ACCURACY RATE TO 90 ONCE THE ENTIRE SYSTEM IS OPERATIONAL IN 1998 THERE WILL BE VERY FEW WEATHER SURPRISES SAID EW FRIDAY THE AGENCY'S DIRECTOR THE COMPUTER SYSTEMS CONTRACT IS A MAJOR GAIN FOR BLACK & DECKER CORP OF TOWSON MD ITS PRC ADVANCED SYSTEMS INC UNIT WILL PROVIDE AN ADVANCED WEATHER INTERACTIVE PROCESSING SYSTEM IN THE 11YEAR AGREEMENT UNDER THE EXISTING SYSTEM WEATHER INFORMATION FROM DIFFERENT SOURCES HAS TO BE MANUALLY ASSEMBLED TO PROVIDE A COMPOSITE PICTURE OF WEATHER PATTERNS THIS TENDS TO LIMIT THE AMOUNT OF DATA THAT CAN BE USED AT ONE TIME YOU'VE LITERALLY GOT FORECASTERS RUNNING FROM GAUGES TO DIALS AN AGENCY SPOKESMAN SAID THE NEW RADAR ALREADY INSTALLED IN 20 SITES BRINGS IN 100 TIMES MORE DATA THAN THE PRESENT SYSTEM AND THE NEW SATELLITES WILL ALLOW 50 TIMES MORE IMAGES TO BE RECEIVED AS A RESULT OF THE CONTRACT WE WILL BE ABLE TO BRING ALL THIS TOGETHER ON A WORKSTATION DR FRIDAY SAID ACCORDING TO A JULY 1992 STUDY CONDUCTED BY THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY THE BENEFITS WILL BE 8 FOR EVERY 1 SPENT ON MODERNIZATION OF THE WEATHER SERVICE DR FRIDAY SAID PRC'S PARTNERS FOR THE PROJECT INCLUDE GTE SPACENET OF MCLEAN VA A UNIT OF GTE CORP WHICH WILL PROVIDE SATELLITE BROADCAST SERVICES ATMOSPHERIC ENVIRONMENTAL RESEARCH OF CAMBRIDGE MASS WHICH WILL PROVIDE METEROLOGICAL SOFTWARE AND HEWLETTPACKARD OF PALO ALTO CALIF WHICH WILL SUPPLY THE PRIMARY WORKSTATION AND OTHER HARDWARE THE SELECTION OF PRC WAS A DISAPPOINTMENT FOR COMPUTER SCIENCES CORP EL SEGUNDO CALIF A RIVAL FOR THE CONTRACT COMPUTER SCIENCES' SHARES FELL 1625 TO 76625 IN TRADING ON THE NEW YORK STOCK EXCHANGE BLACK & DECKER'S SHARES CLOSED AT 1850 UP 375 CENTS 9301050003 930105 ULTIMATE CORP CUTS DEBT BY TRANSFERRING REAL ESTATE SETS CHARGE EAST HANOVER NJ SQUEEZED FROM OVEREXPANSION AND A PAUCITY OF ORDERS ULTIMATE CORP CUT ITS 173 MILLION DEBT HELD BY CHASE MANHATTAN BANK BY TRANSFERRING ITS REAL ESTATE TO CHASE ULTIMATE SAID IT WOULD TAKE A CHARGE OF 11 MILLION AGAINST EARNINGS IN THE THIRD QUARTER ENDING JAN 31 TO COVER A REDUCTION IN THE MARKET VALUE OF THE TWOBUILDING COMPLEX TO 117 MILLION FROM ROUGHLY 22 MILLION UNDER THE SALELEASEBACK AGREEMENT WHICH INCLUDES ULTIMATE'S HEADQUARTERS CHASE CUT THE DEBT THAT ULTIMATE MUST REPAY TO 5 MILLION PAYABLE OVER 60 MONTHS WITH INTEREST IN ADDITION CHASE RECEIVED 400000 RESTRICTED COMMON SHARES VALUED AT 600000 OR LESS THAN 5 OF THE SOFTWARE AND NETWORK MANAGEMENT SERVICES COMPANY'S OUTSTANDING SHARES THE SPOKESMAN SAID ULTIMATE WILL LEASE THE SITE BACK FROM CHASE FOR 39 MILLION OVER FIVE YEARS THUS CUTTING ITS COSTS OF FINANCING THE PROPERTY BY CONSIDERABLY MORE THAN 1 MILLION A YEAR WITH THE LATEST AGREEMENT ULTIMATE NO LONGER OWNS REAL ESTATE AND BUILDINGS THE THIRDQUARTER CHARGE WILL BE THE SECOND TIME ULTIMATE SHAREHOLDERS HAVE ABSORBED A CUT IN THE VALUE OF THE SITE THE LARGEST BUILDING OF WHICH HAS BEEN TOTALLY UNOCCUPIED ACCORDING TO A COMPANY SPOKESMAN THAT CHARGE TAKEN IN THE SECOND QUARTER OF ULTIMATE'S 1991 FISCAL YEAR TOTALED ABOUT 5 MILLION ULTIMATE OVEREXPANDED WHILE ITS SALES CONTINUED TO SAG THOSE REVENUE PROBLEMS HAVEN'T ABATED FOR ITS SECOND QUARTER ENDED NOV 17 THE COMPANY REPORTED A LOSS OF 16 MILLION OR 17 CENTS A SHARE COMPARED WITH A LOSS OF 89 MILLION OR 97 CENTS A SHARE A YEAR EARLIER REVENUE SHRANK 21 TO 284 MILLION 9301050001 930105 LEISURE & ARTS ON SPORTS WILDCATS WIN WITH FLURRY OF THREEPOINTERS BY FREDERICK C KLEIN LOUISVILLE KY ACCORDING TO RICK PITINO WHO COACHES BASKETBALL AT THE UNIVERSITY OF KENTUCKY THERE ARE THREEPOINT SHOTS AND THREEPOINT SHOTS THE FIRST KIND HE SAID AFTER HIS TEAM HAD DEFEATED THE ONE FROM INDIANA UNIVERSITY BEFORE 20060 PEOPLE IN A PACKED FREEDOM HALL HERE SUNDAY AFTERNOON ARE THOSE THAT COME AS A RESULT OF THE BALL BEING PASSED AROUND THE PERIMETER OF THE OFFENSIVE ZONE FOOL'S GOLD HE CALLED THEM CONTEMPTUOUSLY THE OTHER KIND COME WHEN THE BALL IS WORKED INSIDE CLOSE TO THE BASKET BEFORE BEING WHIPPED TO THE OPEN OUTSIDE SHOOTER THEY ARE THE REAL MCCOY HE ENTHUSED BECAUSE THEY'RE USUALLY BETTER SHOTS AND THEY OPEN SO MANY OTHER THINGS FOR YOU WE DID THAT A LOT IN THE SECOND HALF TODAY AND I LIKED IT OVER IN HIS TEAM'S CRAMPED CHANGING QUARTERS TRAVIS FORD THE 5FOOT9 KENTUCKY POINT GUARD WHO HAD BEEN HIS TEAM'S PRIMARY DISHER OF TRAYS OOPS TREYS IN THE JUSTCOMPLETED MATCH ADMITTED HIS COACH'S DISTINCTION WAS LOST ON HIM AS LONG AS THEY GO IN I DON'T MUCH CARE WHERE THE PASS COMES FROM HE SAID I'LL TAKE THEM ANY WAY I CAN GET THEM THE FACT OF COURSE IS THAT ALL THREEPOINTERS COUNT ALIKE BE THEY FOOL'S GOLD OR 14KARAT AND KENTUCKY OWED ITS VICTORY TO A VERITABLE AVALANCHE OF THEM IT FUNNELED IN 16 SHOTS FROM BEYOND THE 19FOOT 9INCH ARC OR ALMOST 60 OF ITS POINT PRODUCTION IN THE 8178 WIN TWENTYFOUR OF THOSE 48 POINTS 12 OF THEM BY FORD CAME IN SUCCESSION DURING A FIRSTHALF STRETCH THAT MADE MOST OF THE REST OF THE GAME AN UPHILL CLIMB FOR THE HOOSIERS INDIANA COACH BOB KNIGHT HAS NEVER BEEN A FAN OF THE BONUS SHOT BUT APPRECIATES A GOOD ONE WHEN HE SEES IT WITHOUT A QUESTION THE KEY TO THE GAME WAS FORD HE SAID LATER HE DID ABOUT AS GOOD A JOB AS A KID COULD DO FROM THE PERIMETER THE WIN WAS UNBEATEN KENTUCKY'S NINTH STRAIGHT THIS SEASON AND SET THE INDIANA RECORD AT 112 THE WILDCATS JOURNEYED HERE FROM THEIR LEXINGTON HOME RANKED THIRD NATIONALLY IN THE ASSOCIATED PRESS POLL INDIANA WAS FOURTH AND THEIR WIN PLUS A COUPLE OF LOSSES LAST WEEK BY NO 2 KANSAS MEANS THEY'LL PROBABLY CLIMB A NOTCH IN THE NEXT BALLOTING BEHIND ONLY DUKE AND WHILE POLL RANKINGS ARE JUST A CONVERSATION PIECE IN A SPORT IN WHICH THE CHAMPIONSHIP IS DECIDED BY A SEASONENDING TOURNAMENT THEY'RE GOOD FOR PURPOSES OF BRAGGING WHICH IS WHAT THIS INTRACONFERENCE MATCH BETWEEN THE CHIEF COLLEGIATE REPS OF THE TWO NEIGHBORING BASKETBALLMAD STATES REALLY IS ABOUT INDEED TO HEAR SOME TELL IT NOBODY DESERVES TO LIVE NEXT DOOR TO KENTUCKY AS MUCH AS INDIANA AND VICE VERSA WITH NO APPARENT SENSE OF IRONY KENTUCKIANS HAVE DUBBED THE SUCCESSIVE GENERATIONS OF UK CAGERS THE ROMAN EMPIRE IU'S FIVES HAVE NO SUCH DESIGNATION PROBABLY BECAUSE INDIANIANS FEEL NO HISTORICAL PRECEDENT MEASURES UP BUT GIVEN THEIR KNIGHTLY CONNECTION AND FREQUENT PROFESSIONS OF HOOPS HIGHMINDEDNESS FROM THE HOOSIER FAITHFUL CAMELOT MIGHT SERVE THAT THE TWO TEAMS ARE REALLY KIND OF SOVEREIGN POWERS WITHIN THEIR STATES IS ATTESTED BY THE CIRCUMSTANCES THAT SURROUND THEIR YEARLY MEETINGS BECAUSE NEITHER HAS DEIGNED TO PERFORM AT THE OTHER'S HOME ARENA IN RECENT YEARS QUASINEUTRAL SITES HAVE BEEN UTILIZED SUCH AS FREEDOM HALL AND THE INDIANAPOLIS HOOSIER DOME WITH SEATING DIVIDED 5050 BETWEEN ADHERENTS OF THE SCHOOLS NEXT THING YOU KNOW THEY'LL BE PUTTING NUMERALS ON SERIES RENEWALS IF THEY DID THAT SUNDAY'S GAME WHICH I GUESS WAS PLAYED BEFORE 10030 ZEALOTS FROM EACH SIDE WOULD HAVE BEEN XXXVI OF WHICH KENTUCKY NOW HAS WON XVII MOREPERTINENT NUMBERS THOUGH WOULD BE THREE TWO THREE AND TWO THE VICTORY MARGINS IN THE PAST FOUR ANNUAL CONTESTS INDIANA WON THE FIRST TWO OF THOSE KENTUCKY THE NEXT TWO INDIANA MIGHT HAVE WON THIS ONE IF IT HAD MADE MORE OF ITS FREE THROWS ITS 18OF36 PERFORMANCE FROM THE LINE NOT ONLY SUNK IT POINTSWISE BUT ALSO BLUNTED THE MOMENTUM OF SEVERAL PROMISING DRIVES POOR FREETHROW SHOOTING HAS BEEN A SEASONLONG HEADACHE FOR THE BIG 10 TEAM ITS OVERALL MARK STANDS AT A SUBPAR 68 KNIGHT CURLED HIS LIP AT A QUERY ABOUT HIS CREW'S PRACTICE SUCCESS AT THE SKILL THEY DON'T GO ON THE SCOREBOARD IN PRACTICE HE SNEERED THE HOOSIERS' OTHER TWO MAJOR PROBLEMS WERE THE HUMAN ONES OF FORD AND JAMAL MASHBURN THE MASHBURN DIFFICULTY WAS EXPECTED BECAUSE THE 6FOOT8 240POUND NEW YORKER WHO COMBINES BEEF WITH FINESSE IS A PRESEASON ALLAMERICAN AND RICHPROTOBE HE FLASHED HIS ADVERTISED QUALITIES ON SUNDAY REGISTERING 18 OF HIS 29 POINTS FROM THREEPOINT LAND AND GETTING A TEAMLEADING EIGHT REBOUNDS TO BOOT FIVE OF HIS POINTS A THREEPOINTER FOLLOWED BY A SHORT JUMPSHOT BASKET PUT HIS TEAM AHEAD TO STAY AFTER INDIANA HAD RALLIED TO TIE AT 74 IN THE LATE GOING FORD HAD 29 POINTS TOO WHICH WAS SURPRISING BECAUSE HE'D BEEN AVERAGING 79 POINTS A GAME EQUALLY IMPRESSIVE WAS HIS BALL HANDLING HE COMMITTED BUT TWO TURNOVERS IN 37 MINUTES AGAINST TYPICALLY STRONG HOOSIER PRESSURE I MIGHT NEVER SCORE 29 AGAIN BUT TAKING CARE OF THE BALL IS SOMETHING I HAVE TO DO EVERY TIME OUT NOTED THE MADISONVILLE KY JUNIOR ONE OF JUST TWO KENTUCKIANS ON THE WILDCATS' 14MAN ROSTER THE 29POINT OUTPUT WAS EQUALED BY HOOSIERS CALBERT CHEANEY AND MATT NOVER AND THIS ALSO HAD ITS EXPECTEDUNEXPECTED ANGLE CHEANEY A LITHE SENIOR FORWARD IS ALLEVERYTHING LIKE MASHBURN SO HIS EXCELLENCE IS TAKEN FOR GRANTED NOVER A HUSKY CENTER IS A WORKHORSE TYPE WHO RARELY FLASHES OFFENSIVE BRILLIANCE BUT HIS SUCCESS WITH THE BALL WITHIN ARM'S REACH OF THE BASKET HE PUT IN EIGHT OF NINE SHOTS FROM THE FIELD AND WAS ON THE LINE FOR 20 FREE THROWS INDICATED THAT KENTUCKY'S INTERIOR DEFENSE IS SUSPECT PITINO LATER ADMITTED THAT FOR ALL ITS EARLY SUCCESS HIS TEAM IS A YOUNG ONE AND THUS SUBJECT TO VARIOUS LAPSES BUT HE SAID GAMES LIKE THIS ONE WOULD HELP IN THAT REGARD WE WEREN'T NEARLY AS YOUNG AT THE END OF THIS DAY AS WE WERE AT THE START HE AVERRED 9301040151 930104 YEAREND REVIEW OF STOCK MARKET SMALL STOCKS POSTED BIG JUMP IN 1992 AND THEY ARE LIKELY TO CONTINUE LEADING BY DOUGLAS R SEASE STAFF REPORTER OF THE WALL STREET JOURNAL SMALL WAS BIG IN 1992 AND IT COULD BE EVEN BIGGER THIS YEAR SMALL INVESTORS AND SMALL STOCKS UNQUESTIONABLY LOOMED LARGE IN FINANCIAL MARKETS IN 1992 SYMMETRICAL STOCK MARKET RALLIES MARKED THE BEGINNING AND END OF THE YEAR BUT THERE WAS PRECIOUS LITTLE ACTION IN BETWEEN BUT THE NASDAQ COMPOSITE INDEX OF OVERTHECOUNTER STOCKS SOARED TO 67695 FROM 58634 A 155 GAIN AND THE RUSH TO SMALL STOCKS GENERATED A RECORD LEVEL OF INITIAL PUBLIC OFFERINGS AS MORE AND MORE COMPANIES TAPPED THE EQUITY MARKET FOR FUNDS MANY ANALYSTS SEE 1992 AS ONLY A PRELUDE TO FURTHER STOCK MARKET PARTICIPATION BY SMALL INVESTORS AND MORE GAINS FOR SMALL STOCKS IN 1993 INDIVIDUAL INVESTORS WILL CONTINUE TO BE LURED INTO THE STOCK MARKET BY THE PROSPECT OF BETTER RETURNS THAN THEY CAN GET ELSEWHERE WHAT'S MORE THE AGING OF THE BABY BOOMERS SUGGESTS TO SOME ANALYSTS THAT INDIVIDUAL INTEREST IN STOCKS WILL CONTINUE TO RISE FOR YEARS TO COME WHEN THE HEAD OF THE HOUSEHOLD HITS 40 OR 45 RETIREMENT PLANNING BECOMES THE NO 1 REASON TO BE SAVING NOT VACATIONS OR HOUSE DOWN PAYMENTS AND THAT MEANS MORE FOCUS ON LONGTERM INVESTMENTS LIKE STOCKS AND BONDS SAYS ABBY JOSEPH COHEN A MARKET STRATEGIST AT GOLDMAN SACHS SHE NOTES 1992 WAS THE FIRST TIME IN 30 YEARS THAT INDIVIDUAL INTEREST IN STOCKS AND BONDS GREW AND I DON'T THINK IT'S GOING TO DIMINISH FOR A LONG TIME AT THE SAME TIME SMALL STOCKS SEEM TO BE ENTERING ONE OF THE PROLONGED PERIODS IN WHICH THEY ARE FAVORED OVER THEIR BIGGER BROTHERS THE BIG OLD TIRED CONSUMER GROWTH STOCKS OF THE 1980S HAVE RUN ABOUT AS FAR AS THEY CAN SAYS CHARLES CLOUGH CHIEF MARKET STRATEGIST AT MERRILL LYNCH IN 1993 WE'LL CONTINUE TO SEE A SHIFTING OF EQUITY CAPITAL INTO SMALL STOCKS HE CONTINUES BUT HE WARNS THAT THE RESULTING SMALLSTOCK RALLY WON'T BE WITHOUT PITFALLS SURE THEY'LL GET OVERBOUGHT AND WE'LL SEE SOME CONSOLIDATION HE SAYS BUT THE BIG GUYS WENT UP FOR 12 YEARS AND THE LITTLE STOCKS HAVE ONLY BEEN CLIMBING FOR TWO SO FAR THE COMBINATION OF SMALL INVESTORS AND SMALL STOCKS COULD BE ESPECIALLY POTENT SAYS JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ YOUR GRANDMOTHER MAY HAVE OWNED AT&T FOR YEARS BUT NEW INVESTORS COMING TO THE MARKET WANT SOMETHING DIFFERENT HE SAYS THEY'RE MORE INTERESTED IN MIDDLESIZED AND SMALLCAPITALIZATION STOCKS AND AS THEY TALK ABOUT IT OTHERS WILL GET INTERESTED UNTIL THE PROCESS IS FEEDING ON ITSELF WHAT'S MORE HE SAYS AS SMALL STOCKS CONTINUE TO SHOW THE BEST GAINS PENSION FUNDS AND OTHER BIG INSTITUTIONAL INVESTORS INCLUDING OVERSEAS INVESTORS WILL BEGIN TO SHIFT THEIR FOCUS TO SMALL STOCKS TOO THAT SHIFT WILL EXTEND THE PERFORMANCE GAINS AMONG SMALL ISSUES IT CAN BE KIND OF SCARY BECAUSE AS THE PROCESS FEEDS ON ITSELF IT CAN BECOME A SIGN THAT THINGS ARE GETTING OVERHEATED HE ADDS BUT I THINK WE'VE STILL GOT A LONG WAY TO GO BEFORE WE GET TO THAT STAGE WITHOUT THE PARTICIPATION OF SMALL INVESTORS AND THE RUNUP IN SMALL STOCK PRICES 1992 WOULD HAVE BEEN ONE OF THE MOST BORING YEARS IN STOCK MARKET MEMORY PRICES OF BIG ISSUES TRADED IN A NARROW RANGE THROUGH MOST OF THE YEAR AS INVESTORS AWAITED CLEAR SIGNS THAT THE ECONOMIC RECOVERY WAS ON TRACK GEORGE BUSH MIGHT NOT HAVE GOTTEN A KINDER GENTLER WORLD BUT HE CERTAINLY ENDED HIS TERM WITH A KINDER GENTLER STOCK MARKET SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP THE STOCK MARKET IN 1992 WAS THE MOST BENIGN I'VE SEEN IN YEARS INDEED MR JOHNSON CREDITS BILL CLINTON'S VICTORY IN THE PRESIDENTIAL ELECTION FOR REINVIGORATING THE STOCK MARKET IN THE CLOSING MONTHS OF 1992 USUALLY THE MARKET DOES BETTER IF AN INCUMBENT IS REELECTED AND PARTICULARLY IF THE INCUMBENT IS A REPUBLICAN HE SAYS BUT THIS TIME THE MARKET FELT THAT CLINTON LOOKED LIKE A BETTER CHANCE FOR A BETTER ECONOMY THAN DID BUSH MR JOHNSON SAYS HE'S FAIRLY CONFIDENT THAT MR CLINTON CAN DELIVER WHAT HE PROMISED IN HIS ELECTION CAMPAIGN MODERATE ECONOMIC STIMULUS AND A MODEST REDUCTION IN THE NATION'S DEFICIT HE'S GOING TO HAVE TO WALK A TIGHTROPE IN 1993 SAYS MR JOHNSON PRESIDENTELECT CLINTON HAS GOT TO GIVE US ENOUGH STIMULUS TO KEEP THE ECONOMY GROWING BUT NOT SO MUCH THAT HE SCARES THE BOND MARKET AND RUINS THE RECOVERY BUT THAT DOESN'T GUARANTEE A BIG BOOST TO STOCK PRICES WARNS MR JOHNSON THERE'S A REAL DANGER THAT THE MARKET'S RESPONSE TO CLINTON'S INITIATIVES IS ALREADY OVER HE SAYS WE MAY SEE THE DOW INDUSTRIALS REACH 3500 IN 1993 BUT I THINK WE'VE GOT TO GET ACCUSTOMED TO SINGLEDIGIT RETURNS FROM THE STOCK MARKET OTHER ANALYSTS ARE MORE OPTIMISTIC ABOUT THE OUTLOOK PETER CANELO CHIEF MARKET STRATEGIST AT COUNTY NATWEST PREDICTS THAT THE DOW JONES INDUSTRIALS CAN HIT 3600 IN 1993 BUT HE TOO SUGGESTS THAT INVESTORS MAY SEE THE BEST PART OF THAT GAIN EARLY IN THE YEAR BEFORE THE REBOUNDING ECONOMY BEGINS TO GENERATE SOME INFLATIONARY PRESSURES WE COULD SEE A REAL CORRECTION AS CREDIT DEMANDS PICK UP AND BOND YIELDS BEGIN TO RISE HE SAYS MY GUESS IS THAT HAPPENS AROUND THE MIDDLE OF THE YEAR BUT HE ADDS THAT IF THE CLINTON ADMINISTRATION IS SUCCESSFUL IN ITS EFFORTS TO TURN AROUND THE ECONOMY THE STOCK MARKET COULD GET ANOTHER BOOST LATE IN THE YEAR IF THEY REALLY CAN CHANGE SOME OF THE IMPEDIMENTS TO GROWTH IN TERMS OF INVESTMENT POLICY TAX POLICY AND GOVERNMENT SPENDING THE MARKET COULD TURN AROUND BEFORE YEAR END AND MOVE UP SHARPLY BUT IT'S HARD TO MAKE PROJECTIONS BECAUSE YOU DON'T KNOW EXACTLY WHAT THEY'RE GOING TO DO BYRON WIEN CHIEF MARKET STRATEGIST AT MORGAN STANLEY LOOKS FOR 1993 TO PRODUCE A DOW JONES INDUSTRIAL AVERAGE OF 3600 WITH AT LEAST A SHOT OF MAKING 3700 WHILE HE DOESN'T EXPECT THE US ECONOMY OR STOCK MARKET TO BE REALLY HOT THIS YEAR THE US WILL NEVERTHELESS SHINE WHEN COMPARED WITH OTHER ECONOMIES AND MARKETS THE US HAS REESTABLISHED ITSELF AS THE GLOBAL ECONOMIC AND POLITICAL LEADER HE SAYS GERMANY'S HIGH INTEREST RATES ARE CRIPPLING ITS OWN AND OTHER EUROPEAN ECONOMIES THE REMNANTS OF THE SOVIET UNION ARE IN DISARRAY EASTERN EUROPE IS A BASKET CASE AND JAPAN IS IN TROUBLE AS A RESULT MR WIEN EXPECTS FOREIGN INVESTORS WHO FOR THE PAST FEW YEARS HAVE BEEN NET SELLERS OF US STOCKS AND BONDS TO BEGIN RETURNING TO THE US MARKET THEY WILL COME BACK MORE QUICKLY IF MR CLINTON BEGINS TO SHOW THAT HE CAN KEEP THE ECONOMIC RECOVERY ON TRACK RIGHT NOW FOREIGNERS ARE LIKE SPORTS FANS OUTSIDE THE STADIUM HE SAYS THEY'RE WATCHING TO SEE IF CLINTON IS JUST ANOTHER TRADITIONAL DEMOCRAT OR IF HE REALLY REPRESENTS A WHOLE NEW BREED OF POLITICIAN BUT THE US'S PREMIER POSITION AMONG NATIONS ISN'T AN UNALLOYED BLESSING SOME ANALYSTS NOTE THAT AS THE DOMESTIC ECONOMY OUTPACES FOREIGN GROWTH RATES THE DOLLAR IS ALMOST CERTAIN TO RISE THAT COUPLED WITH WEAKER DEMAND FOR PRODUCTS AND SERVICES FROM ABROAD COULD HURT MANY OF THE BIG US MANUFACTURING COMPANIES WHICH RELY ON EXPORTS FOR A PORTION OF THEIR PROFITS ALL THE MORE REASON THEY ADD TO FAVOR SMALL STOCKS IN 1993 9301040150 930104 CORPORATE FOCUS CEO ROBB ADDS SPICE TO MIX OF DRUGS AT WELLCOME STAFF REWARDS COMMERCIAL EMPHASIS BUOYANT PROFITS MARK FIRM'S FACE LIFT BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON AT WELLCOME PLC'S ANNUAL MEETING IN DECEMBER CHIEF EXECUTIVE OFFICER JOHN ROBB SMILED WRYLY WHEN A SKEPTICAL SHAREHOLDER QUESTIONED A 38 INCREASE IN DIRECTORS' 1992 COMPENSATION WELLCOME CHAIRMAN SIR ALISTAIR FRAME EXPLAINED THAT MUCH OF THE PAY INCREASE REFLECTED A SPECIAL BONUS CONNECTED WITH LAST SUMMER'S 22 BILLION 333 BILLION PLACEMENT OF WELLCOME STOCK BY THE WELLCOME TRUST FORMERLY THE COMPANY'S MAJORITY OWNER SIR ALISTAIR WAS CAREFUL TO POINT OUT THAT WELLCOME TRUST FULLY REIMBURSED THE COMPANY FOR THAT BONUS PAYOUT BUT STAUNCHLY DEFENDING ADDITIONAL PERFORMANCERELATED BONUSES PAID TO EXECUTIVE DIRECTORS HE ADDED ALL WELLCOME SHAREHOLDERS HAVE BENEFITED FROM THE RESULTS THESE GENTLEMEN HAVE DELIVERED IF THAT PERFORMANCE DOESN'T CONTINUE NEITHER WILL THE BONUS PAYMENTS MR ROBB A 56YEAROLD SCOT WOULDN'T HAVE IT ANY OTHER WAY HIS THREE YEARS AT WELLCOME HAVE BEEN MARKED BY BUOYANT SALES AND PROFIT PLUS A CONCERTED EFFORT TO HONE A SHARPER COMMERCIAL EDGE AND SPREAD FINANCIAL REWARDS AMONG DESERVING EMPLOYEES EXCEPT WHERE SPECIFICALLY BARRED BY LOCAL LAW EACH OF WELLCOME'S 18000 EMPLOYEES WORLDWIDE HAD A CHANCE TO BUY 500 SHARES AT A DISCOUNTED PRICE UNDER THE TRUST'S SHARE SALE LAST SUMMER WE'VE TRIED TO DO SOMETHING ABOUT THE WHOLE REWARD PACKAGE AND DRIVE SHARE OPTIONS DOWN THROUGH THE ORGANIZATION MR ROBB EXPLAINED DURING A RECENT INTERVIEW OUR THINKING IS THAT THE MORE EMPLOYEES HAVE A STAKE IN THE COMPANY THE GREATER THEIR INTEREST IN THE COMPANY'S FUTURE WILL BE THAT POLICY MIGHT SEEM COMMONPLACE ANYWHERE ELSE BUT IT EXEMPLIFIES THE SWEEPING CORPORATE FACE LIFT THAT COINCIDED WITH MR ROBB'S ARRIVAL IN 1989 AS DEPUTY CHIEF EXECUTIVE AND HIS PROMOTION TO CHIEF EXECUTIVE A YEAR LATER SHELTERED FOR NEARLY 50 YEARS BY THE WELLCOME TRUST'S BENEVOLENT PATERNAL OWNERSHIP THE COMPANY REMAINED A HAVEN FOR MEDICAL RESEARCH ALOOF FROM CUSTOMARY COMMERCIAL PRESSURES THAT FREE REIN GAVE LABS THE FREEDOM TO PURSUE SCIENTIFIC HUNCHES THAT SOMETIMES PAID BIG DIVIDENDS WELLCOME RESEARCHERS SINGLEHANDEDLY PIONEERED NEW THERAPEUTIC AREAS SUCH AS ANTIVIRAL MEDICINES WHICH TARGET MALADIES FROM ACQUIRED IMMUNE DEFICIENCY SYNDROME TO HERPES AND ACCOUNT FOR NEARLY HALF OF ANNUAL SALES YET BY THE MID1980S EVEN THE WELLCOME TRUST WAS FEELING A FINANCIAL PINCH AND MOVED TO BROADEN ITS INVESTMENT PORTFOLIO BY SHEDDING WELLCOME SHARES LAST YEAR'S SHARE SALE TRIMMED THE TRUST'S INTEREST TO 399 FROM 735 TRUSTEES HAVE THE AUTHORITY TO PARE THE HOLDING FURTHER TO 25 THOUGH A STANDSTILL AGREEMENT BARS FURTHER SALE OF SHARES UNTIL JAN 1 1994 LOOSENING OF THE TRUST'S DOMINANCE ALONG WITH A MASSIVE RESHUFFLING OF WELLCOME'S BOARD GAVE MR ROBB ROOM TO RESHAPE THE COMPANY THE SALE OF SEVERAL BARELY PROFITABLE PERIPHERAL DIVISIONS FATTENED WELLCOME'S PROFIT MARGINS TO 277 IN THE YEAR ENDED AUG 29 FROM 212 TWO YEARS EARLIER AND WITH NEW MANAGEMENT GIVING TOUGHER SCRUTINY TO CAPITAL OUTLAYS CASH BEGAN PILING UP WELLCOME'S NET CASH DOUBLED TO 410 MILLION DURING FISCAL 1992 AND IS EXPECTED TO REACH 1 BILLION BY 1995 UP FROM 17 MILLION AT THE END OF FISCAL 1990 PROSPECTS REMAIN BRIGHT ANALYSTS AT GOLDMAN SACHS & CO PREDICT WELLCOME'S ANNUAL EARNINGS GROWTH WILL AVERAGE 21 OVER THE COMING FIVE YEARS ONE OF THE HIGHEST RATES IN THE INDUSTRY UNDERSCORING THAT BULLISH OUTLOOK THE US INVESTMENT BANK RECENTLY MADE WELLCOME ITS MOST PREFERRED UK DRUG STOCK REPLACING PERENNIAL FAVORITE GLAXO HOLDINGS PLC EUROPE'S BIGGEST DRUG MAKER THAT'S PRETTY HEADY COMPANY BUT MR ROBB INSISTS WELLCOME MANAGEMENT ALSO HAS SET SOME VERY DEMANDING TARGETS ONE IS TO BECOME ONE OF THE WORLD'S 15 BIGGEST PHARMACEUTICAL COMPANIES AS MEASURED BY ANNUAL PRESCRIPTION DRUG SALES BEFORE THE END OF THE DECADE THE COMPANY CURRENTLY RANKS 21ST UP FROM 24TH WHEN MR ROBB TOOK THE HELM OF COURSE RUNNING A DRUG COMPANY TODAY REQUIRES NEARLY AS MUCH DEFT POLITICKING AS FINANCIAL OR SCIENTIFIC ACUMEN WELLCOME'S HIGHPROFILE PRODUCTS AND GROWING CLOUT INCREASINGLY ARE PUSHING MR ROBB TO CENTER STAGE AS A PROMINENT INDUSTRY SPOKESMAN WHERE HE'S BEEN VERY OUTSPOKEN WITH AIDS ACTIVISTS ASSAILING THE HIGH PRICE OF ITS DRUG RETROVIR THE ONLY EFFECTIVE THERAPY AGAINST AIDS DISCOVERED SO FAR WELLCOME OFFERED TWO PRICE REDUCTIONS OF 20 EACH IN RECENT YEARS IN ADDITION A 50 DECREASE IN DOSAGE FURTHER SLASHED THE COST OF A YEAR'S TREATMENT WITH THE DRUG TO ROUGHLY 2500 A PATIENT FROM 10000 ORIGINALLY THAT ABRUPT PRICE EROSION KEPT RETROVIR SALES REVENUE FLAT LAST YEAR A FAR CRY FROM PROJECTIONS OF A HUGE REVENUE AND PROFIT SURGE THAT HAD INTENSIFIED PRESSURE ON WELLCOME EXECUTIVES TO ACCEPT THE SECOND 20 PRICE CUT MR ROBB QUESTIONS THAT CUT ORDERED WHILE HE WAS STILL DEPUTY CHIEF EXECUTIVE BECAUSE HE SAYS IT WAS BASED ON FLAWED MARKET DATA WELLCOME'S BOARD TOOK A BIG GAMBLE IN RECRUITING MR ROBB AN OUTSIDER TO RUN SUCH A TIGHTKNIT COMPANY MR ROBB HAD LEFT SMITHKLINE BEECHAM PLC WHERE HE HAD WORKED HIS WAY UP TO CHIEF EXECUTIVE IN SEPTEMBER 1988 BUT A FRESH PERSPECTIVE UNENCUMBERED BY OLD LOYALTIES TURNED OUT TO BE A BIG ADVANTAGE IN THE NEW POST MY EXPERIENCE IS THAT THE LONGER YOU LIVE WITH A PROBLEM THE MORE YOU GET ASSOCIATED WITH IT AND THE MORE DIFFICULT IT BECOMES TO ADDRESS MR ROBB EXPLAINS THE PACE OF CHANGE HAS PICKED UP STEADILY AS MR ROBB HAS STRIVED TO MAKE WELLCOME MORE NIMBLE HE PRODS UNITS AROUND THE WORLD TO EMULATE THE RECORD OF US UNIT BURROUGHS WELLCOME IN THE CRUCIAL AREA OF CLINICAL DEVELOPMENT AND REGULATORY APPLICATIONS FOR NEW DRUGS WELLCOME BOASTS THAT NINE OF ITS LAST 10 NEW DRUG APPROVALS IN THE US HAVE COME WITHIN 17 MONTHS OF THE COMPANY'S ORIGINAL APPLICATION COMPARED WITH AN INDUSTRY AVERAGE OF 28 MONTHS PART OF THAT STELLAR RECORD STEMS FROM THE FACT THAT BECAUSE MANY WELLCOME DRUGS ARE USED AGAINST SUCH DAUNTING DISEASES THEY OFTEN OBTAIN EXPEDITED CLEARANCE FROM REGULATORS BUT MR ROBB BELIEVES IT'S POSSIBLE TO CUT DEVELOPMENT TIMES FOR ALL DRUGS TO FIVE TO SEVEN YEARS FROM THE CURRENT 10 TO 12 YEARS MR ROBB ALSO HAS REVERSED THE COMPANY'S ALOOF TRADITIONS AND FORGED A FLURRY OF ALLIANCES FOR EXAMPLE A COPROMOTION PACT WITH HOECHST AG WAS LAUNCHED TWO YEARS AGO FOR WELLCOME'S ANTIHERPES MEDICINE DRUG ZOVIRAX IN GERMANY WE'RE ALSO TALKING EXTENSIVELY TO BIOTECHNOLOGY COMPANIES AND HOPE TO BECOME A MORE IMPORTANT PLAYER IN THE BIOTECH FIELD PLUS WE'RE ALWAYS LOOKING TO ACCELERATE OUR R&D PROGRAMS THROUGH CODEVELOPMENT THE WELLCOME CHIEF SAYS 9301040149 930104 CHARTER MEDICAL AGREES TO REFORMS AT TEXAS HOSPITALS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL MACON GA CHARTER MEDICAL CORP BECAME THE SECOND HOSPITAL CHAIN TO AGREE TO PSYCHIATRICCARE REFORMS IN TEXAS AS PART OF A 325 MILLION SETTLEMENT WITH THE STATE'S ATTORNEY GENERAL THE AGREEMENT FILED IN STATE COURT THURSDAY IS SIMILAR TO A 9 MILLION SETTLEMENT TEXAS REACHED LAST JUNE WITH NATIONAL MEDICAL ENTERPRISES INC AS PART OF A YEARLONG INVESTIGATION OF BUSINESS PRACTICES BY PSYCHIATRIC HOSPITALS OPERATING IN THE STATE THE INVESTIGATION HAS SPARKED SIMILAR PROBES IN OTHER STATES AS WELL AS A PUSH FOR NEW STATE LAWS CONTROLLING PSYCHIATRIC HOSPITALS AMONG OTHER THINGS CHARTER'S AGREEMENT BARS ITS 11 TEXAS PSYCHIATRIC HOSPITALS FROM ADMITTING PATIENTS WITHOUT A PRIOR EVALUATION BY A PSYCHIATRIST GIVING EMPLOYEES FINANCIAL INCENTIVES TO MEET OCCUPANCY GOALS AND OFFERING SCHOOLS THE SERVICES OF PRIVATE CHARTER COUNSELORS WHO REFER STUDENTS TO CHARTER HOSPITALS CHARTER BASED IN MACON ADMITTED NO WRONGDOING AND THE COMPANY SAID ITS PSYCHIATRIC HOSPITALS THROUGHOUT THE COUNTRY ALREADY ABIDE BY MOST OF THE TEXAS RULES BUT CHARTER AGREED TO PAY TEXAS 550000 FOR INVESTIGATION COSTS WITHDRAW 11 MILLION OF REIMBURSEMENT CLAIMS AGAINST A STATE VICTIMCOMPENSATION FUND AND PROVIDE 16 MILLION OF FREE MENTALHEALTH CARE TO TEXAS RESIDENTS WE LOOKED AT THE DOCUMENT AND SAID WE DON'T DO MOST OF THE BARRED PRACTICES' BUT WE WANT TO BE SUPPORTIVE OF THE REFORMS AND BE A LEADER SAID E MAC CRAWFORD PRESIDENT AND CHIEF OPERATING OFFICER OF CHARTER WHICH OPERATES 93 PSYCHIATRIC AND GENERAL HOSPITALS IN TOTAL KEY PROVISIONS OF THE TEXAS AGREEMENTS WITH CHARTER AND NATIONAL MEDICAL ENTERPRISES WON'T GO INTO EFFECT UNLESS THE STATE REACHES SIMILAR AGREEMENTS BY JAN 15 WITH TWO OTHER CHAINS OR SUES THEM A SPOKESMAN FOR TEXAS ATTORNEY GENERAL DAN MORALES SAID THE SPOKESMAN SAID TALKS ARE CONTINUING WITH THE TWO CHAINS HOSPITAL CORP OF AMERICA BASED IN NASHVILLE TENN AND COMMUNITY PSYCHIATRIC CENTERS BASED IN LAGUNA HILLS CALIF 9301040148 930104 HEARD ON THE STREET XILINX'S SUPPORTERS SAY ITS STOCK LOOKS CHEAP DESPITE RECENT SURGE BUT SHORT POSITION IS BIG BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SEMICONDUCTOR SHARES WERE ONE OF 1992'S HOTTEST STOCK SECTORS AND THE HUNT IS ON FOR CHEAP CHIP STOCKS INVESTORS ARE PLOWING MONEY INTO XILINX LATELY BUT THE STOCK MAY NOT GROW INTO THE TOWERING INVESTMENT RETURN THEY HOPE FOR THIS YEAR NOW AT 25 1/4 THE STOCK HAS JUMPED 64 FROM ITS LOW FOR THE YEAR OF 15 3/8 IN OCTOBER BULLS SAY THE SAN JOSE CALIF MAKER OF PROGRAMMABLE CHIPS STILL LOOKS CHEAP AT 18 TIMES ESTIMATED EARNINGS FOR FISCAL 1994 WHICH ENDS A YEAR FROM MARCH PERSHARE NET INCOME IS EXPECTED TO GROW 30 IN THAT YEAR TO 140 FROM AN ESTIMATED 107 THIS FISCAL YEAR XILINX'S EARNINGS OUTLOOK IS CONTROVERSIAL HOWEVER AND AT TODAY'S PRICE INVESTORS WOULD DO BETTER TO STAND AWAY AND WATCH CLOSELY BULLS THINK XILINX IS RIGHT ON THE CUSP OF A BIG TURNAROUND IN THEIR BUSINESS AS PAUL WICK MANAGER OF THE J&W SELIGMAN COMMUNICATIONS & INFORMATION FUND SAYS BECAUSE IT IS STARTING TO PULL AWAY FROM A FORMIDABLE COMPETITOR AMERICAN TELEPHONE & TELEGRAPH BEARS SUCH AS MARK ROBERTS OF OFF WALL STREET CONSULTING GROUP IN BOSTON THINK XILINX'S BUSINESS IS BECOMING INCREASINGLY COMMODITIZED AND COMPETITIVE ABOUT 10 OF XILINX'S TRADABLE STOCK HAS BEEN SOLD SHORT A BET BY BEARS THAT THE PRICE WILL FALL COMPUTER CHIPS TYPICALLY ARE PROGRAMMED TO PERFORM STANDARDIZED FUNCTIONS BUT XILINX PIONEERED CHIPS THAT ARE LIKE ELECTRONIC BLACKBOARDS WHERE ENGINEERS INSCRIBE CUSTOMIZED LOGIC INSTRUCTIONS ON SITE XILINX SELLS THE PROGRAMMING SOFTWARE AND CHIPS TO SUCH COMPANIES AS INTERNATIONAL BUSINESS MACHINES AND NORTHERN TELECOM XILINX ISN'T A PLAY ON THE BOOM IN PERSONALCOMPUTER SALES LIKE OTHER CHIP STOCKS BUT THE STORY OF AN EXPANDING MARKET FOR PROGRAMMABLE CHIPS IS TO MANY INVESTORS MUCH MORE EXCITING AND ENTICING THE LEAPFROG PACE OF TECHNOLOGICAL IMPROVEMENTS IS SHORTENING DESIGN CYCLES FOR COUNTLESS PRODUCTS FROM MICROWAVE OVENS TO MEDICAL EQUIPMENT PROGRAMMABLE CHIPS CAN CUT REDESIGN TIMES AND COSTS AND ALLOW ENGINEERS TO FIX ERRORS QUICKLY ONCE ENGINEERS START USING A PARTICULAR TYPE OF SOFTWARE FOR CHIP DESIGN THEY ARE UNLIKELY TO SWITCH SO XILINX HAS COMMITTED CLIENTS THEIR ADVANTAGE IS THAT THEY HAVE A HUGE INSTALLED SOFTWARE BASE SAYS JOHN MARREN SENIOR SEMICONDUCTOR ANALYST AT ALEX BROWN & SONS AND THEY ARE APPEALING TO ENGINEERS WITH ENHANCEMENTS TO EXPAND THE MARKET FOR PROGRAMMABLE CHIPS XILINX IN 1989 LICENSED TECHNOLOGY TO AT&T THE MOTHER OF ALL BELLS TURNED FROM STRATEGIC PARTNER INTO A XILINX COMPETITOR AND STARTED A PRICE WAR AGAINST XILINX'S MAINSTAY 3000 SERIES CHIP THAT CHIP WILL ACCOUNT FOR ABOUT 60 OF XILINX'S 170 MILLION IN PROJECTED REVENUE THIS FISCAL YEAR AND 40 OF NEXT FISCAL YEAR'S 225 MILLION IN ESTIMATED REVENUE THE COMPANY SAYS XILINX BULLS BANK ON THE COMPANY'S ABILITY TO DISTINGUISH ITSELF FROM AT&T WITH A NEW 4000 SERIES CHIP CURRENTLY BEING OFFERED XILINX HOPES THAT MODEL WILL GROW TO ACCOUNT FOR MORE THAN 30 OF REVENUE BY THE FOURTH QUARTER OF FISCAL 1994 XILINX SHORTSELLERS ARGUE THAT AT&T CAN COMPETE WITH XILINX ON PRICE TECHNOLOGICAL PROWESS AND MARKETING STRATEGY AT&T'S COUNTERMOVE AGAINST THE 4000 SERIES IS A CHIP CALLED ORCA WHICH IS EXPECTED TO REACH THE MARKET THIS MONTH CHRISTOPHER DEMONICO DIRECTOR OF THE AT&T EFFORT SAYS ORCA WILL HAVE THE RIGHT COMBINATION OF TECHNOLOGICAL PUNCH AND ATTRACTIVE PRICING TO LURE A WHOLE CROWD OF BUYERS THAT HAVE SHIED AWAY FROM EXPENSIVE PROGRAMMABLE CHIPS SO FAR XILINX WILL SEE GROWTH BUT THEY WON'T SEE ANYTHING REVOLUTIONARY HE PREDICTS YOU HAVE TO BREAK THE MOLD AND DO SOMETHING COMPLETELY DIFFERENT THE ONLY REASON TO BUY AND HOLD A TECHNOLOGY STOCK IS TO SHARE IN THE MASSIVE PROFITS THAT RAIN DOWN FROM SUCCESSFUL INNOVATION BUT INNOVATION ATTRACTS COPYCATS AND COMPETITORS MR ROBERTS OF OFF WALL STREET THINKS THE PROGRAMMABLECHIP MARKET IS REACHING THAT STAGE OF SHRINKING PROFIT MARGINS MR ROBERTS'S FISCAL 1994 ESTIMATE FOR XILINX IS 70 CENTS A SHAREABOUT HALF WHAT THE STREET EXPECTS IT'S A STATISTICAL WAY OF SAYING XILINX'S 4000 SERIES WILL BE A MODEST SUCCESS AT BEST XILINX OFFICIALS COUNTER THAT THE PROGRAMMABLE CHIP MARKET IS GROWING RAPIDLY AND THEY EXPECT TO CONTINUE TO DOMINATE CERTAIN SEGMENTS THEY NOTE THAT SALES IN THE 4000 SERIES WERE UP 57 IN THE SEPTEMBER QUARTER TO 47 MILLION AND THEY DON'T BELIEVE AT&T HAS XILINX'S SALES AND MARKETING EXPERIENCE DEPENDING ON WHOM ONE BELIEVES XILINX IS EITHER TRADING AT 36 TIMES OR 18 TIMES ESTIMATED FISCAL 1994 EARNINGS THAT KIND OF GAP IN EXPECTATIONS IS A WARNING SIGN FOR PRUDENT INVESTORS 9301040147 930104 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SOUTH KOREAN PRESIDENTELECT KIM YOUNG SAM SAID HE HOPED TO REDUCE THE GOVERNMENT'S ROLE IN THE ECONOMY TO RESTORE ITS VITALITY I WILL DEREGULATE GOVERNMENT RESTRICTIONS ON BUSINESS ACTIVITIES AND CARRY OUT A LARGESCALE REVAMPING OF ALL ECONOMIC SECTORS INCLUDING THE FINANCIAL AREA SAID MR KIM WHO TAKES OFFICE NEXT MONTH MR KIM SAID HE WOULD TRY TO HELP INDEBTED SMALL BUSINESSES BY EXPANDING LENDING REMOVING RED TAPE AND IMPROVING ACCESS TO RAW MATERIALS AND MARKETS HE FAVORED DELAYING THE OPENING OF SOUTH KOREA'S MARKET TO FOREIGN RICE UNTIL THE KOREAN FARM SECTOR DIVERSIFIES AND GAINS GLOBAL COMPETITIVENESS MR KIM SAID HE WOULD GRADUALLY INTRODUCE A PREVIOUSLY PASSED RULE REQUIRING IDENTIFICATION OF PARTICIPANTS IN FINANCIAL TRANSACTIONS HIS AIDES SAID IMPOSING THE RULE ALL AT ONCE COULD LEAD TO AN EXODUS OF FUNDS FROM STOCK AND MONEY MARKETS BY INVESTORS WHO USED BOGUS NAMES AND FEAR TAX INVESTIGATIONS FRANCE WILL SUBSIDIZE CONSTRUCTION OF A 36 BILLION HIGHSPEED TRAIN LINE FROM PARIS TO STRASBOURG HEADQUARTERS OF THE EUROPEAN PARLIAMENT THE 310MILE LINE WILL LINK STRASBOURG IN EASTERN FRANCE TO THE COUNTRY'S TGV TRAIN NETWORK AND EVENTUALLY TO ANOTHER HIGHSPEED TRAIN ROUTE IN GERMANY THE FRENCH STATEOWNED RAILWAY SNCF HAD SOUGHT GOVERNMENT SUPPORT FOR THE STRASBOURG LINE SAYING IT PROBABLY WON'T BE PROFITABLE FUNDING DETAILS AND A CONSTRUCTION SCHEDULE HAVEN'T BEEN SET MORE THAN 300000 COAL MINERS IN POLAND COULD RETURN TO WORK TODAY UNDER AN AGREEMENT WITH THE GOVERNMENT TO END THE THREEWEEK STRIKE OVER PAY AND PLANS FOR CLOSING DOZENS OF UNPROFITABLE MINES AND FIRING 180000 WORKERS THE ACCORD CALLS FOR A BAILOUT OF DEBTBURDENED MINES MORE SUBSIDIES PURSUIT OF INTERNATIONAL CREDITS TO RESTRUCTURE THE INDUSTRY AND REVERSAL OF A PLANNED COAL EXPORT BAN BUT THE GOVERNMENT FACED WITH A HUGE BUDGET DEFICIT DENIED WAGE DEMANDS ALLOWING ONLY FOR TALKS ON PROTECTING PAY AGAINST INFLATION BRAZIL'S NEW GOVERNMENT HAS REAFFIRMED ITS COMMITMENT TO CONTINUE SELLING OFF STATEOWNED COMPANIES AND OPENING THE ECONOMY TO FOREIGN AND DOMESTIC COMPETITION PLANNING MINISTER PAULO HADDAD ALSO THE ACTING FINANCE MINISTER SAID SHOCK MEASURES SUCH AS WAGE AND PRICE CONTROLS WOULDN'T BE USED HE SAID PRESIDENT ITAMAR FRANCO WHO TOOK OFFICE LAST WEEK AFTER A CORRUPTION SCANDAL TOPPLED HIS PREDECESSOR INHERITED AN ECONOMIC DISASTER IN WHICH OUTPUT FELL 02 LAST YEAR AND THE INFLATION RATE AVERAGED 25 A MONTH MR HADDAD SAID THE GOVERNMENT HOPES TO CREATE TWO MILLION JOBS A YEAR IMPROVE SOCIAL PROGRAMS AND CHOP INFLATION TO NO MORE THAN 4 MONTHLY BY 1995 AUSTRALIA HAS RELUCTANTLY AGREED FOR THE THIRD CONSECUTIVE YEAR TO WASHINGTON'S REQUEST TO RESTRAIN MEAT EXPORTS TO THE US SHIPMENTS WILL BE RESTRICTED THIS YEAR TO 315200 METRIC TONS DOWN 51 FROM LAST YEAR AND OFF 45 FROM 1991 A METRIC TON EQUALS 220462 POUNDS US LAW REQUIRES ANNUAL CEILINGS FOR MEAT IMPORTS EXCEEDING THESE LIMITS TRIGGERS IMPORT QUOTAS UNLESS VOLUNTARY LIMITS ARE NEGOTIATED AUSTRALIA SAID IT WOULD CONTINUE TO PRESSURE THE US FOR FREER TRADE IN MEAT SUDAN WILL PRIVATIZE ITS LARGEST AND OLDEST AGRICULTURAL ENTERPRISE THE COTTON MONOPOLY WHICH IS AN IMPORTANT FOREIGNCURRENCY EARNER FOR THE CASHSTRAPPED COUNTRY SINCE THE GOVERNMENT TOOK OVER IN A MILITARY COUP JUNE 30 1989 IT HAS SOUGHT TO REFORM THE ECONOMY BY SELLING OFF STATEOWNED COMPANIES GRADUALLY PHASING OUT SUBSIDIES DEVALUING THE CURRENCY AND INCREASING SALARIES AS PRICES ROSE SELLOFFS ARE PLANNED FOR THE NATIONAL AIRLINE AND SHIPPING AND TELECOMMUNICATIONS SECTORS CHINA HALVED TO 138 THE COMMODITIES SUBJECT TO EXPORT RESTRICTIONS IN ITS CONTINUING CAMPAIGN TO JOIN THE WORLD'S MAJOR TRADE GROUP THE GENERAL AGREEMENT ON TARIFFS AND TRADE EXPORT LICENSES ARE REQUIRED FOR COMMODITIES DEEMED SIGNIFICANT TO CHINA'S ECONOMY OR WORK FORCE THE STATE CONTINUES TO CONTROL EXPORTS OF 16 KEY COMMODITIES INCLUDING GRAIN SOYBEANS CORN TEA COAL CRUDE OIL AND OIL PRODUCTS OTHER ITEMS ON THE RESTRICTED LIST ARE REGULATED BY LOCAL GOVERNMENT TRADE AGENCIES AT FOREIGN GOVERNMENTS' REQUEST SOME GOODS STILL WILL BE SUBJECT TO EXPORT QUOTAS FOREIGN TRADE COMPANIES MAY EXPORT ALL GOODS THAT AREN'T LISTED IN THE NEW RULES CHINESE ENTERPRISES WITH PERMITS FOR FOREIGN TRADE AND JOINT VENTURES MAY EXPORT ONLY THEIR OWN PRODUCTS SEPARATELY CHINA RAISED DOMESTIC AIRLINE FARES AND FREIGHT PRICES AS MUCH AS 20 BUT FOR THE FIRST TIME DISCOUNTS ARE ALLOWEDAS MUCH AS 10 FOR OFFPEAK FLIGHTS MEXICO BEGAN PUTTING BACK INTO CIRCULATION BILLIONS OF COINS OF ONE PESO OR LESS WHICH WERE WITHDRAWN IN THE EARLY 1980S AFTER INFLATION MADE THEM PRACTICALLY WORTHLESS MEXICO ON JAN 1 CUT THREE ZEROS FROM ITS CURRENCY RENDERING 1000 OLD PESOS INTO 1 NEW PESO AND ALLOWING THE SMALLDENOMINATION COINS TO BE REISSUED SOUTH AFRICA OPENED ITS GAME RESERVES IN TRANSVAAL PROVINCE TO HUNTERS USING BOWS AND ARROWS 9301040146 930104 TECHNOLOGY VOIDING OF ZENITH DATA'S US JOB LAID TO BIDDING FLAWS LACK OF COMPLIANCE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL APPEALS PANEL RELEASED SOME DETAILS OF ITS DECISION TO VOID A HUGE AIR FORCE COMPUTER CONTRACT BUT FAILED TO SAY WHAT HAPPENS NEXT WITH THE 7403 MILLION GOVERNMENT ORDER THE GENERAL SERVICES ADMINISTRATION'S BOARD OF CONTRACT APPEALS SAID IT THREW OUT THE CONTRACT LAST MONTH BECAUSE OF FLAWS IN THE AIR FORCE BIDDING PROCESS AND BECAUSE THE WINNING BIDDER ZENITH DATA SYSTEMS PROPOSED USING COMPUTER MONITORS THAT DIDN'T COMPLY WITH GOVERNMENT IMPORT RULES THOUGH THE PANEL SAID ZENITH SHOULDN'T BE DISQUALIFIED AS A BIDDER IT STRONGLY URGED THE AIR FORCE TO AWARD THE COMPUTER CONTRACT TO MORE THAN ONE COMPANY A GOAL THE PENTAGON HASN'T PURSUED SERIOUSLY ENOUGH THE PANEL SAID THOUGH COMPANIES TRACKING THE CONTROVERSIAL CONTRACT HAVE KNOWN SINCE DEC 23 THAT ZENITH'S BID WAS THROWN OUT DETAILS OF THE 53PAGE RULING HAD BEEN SEALED BY THE PANEL WHICH CLAIMED ITS RULING CONTAINED PROPRIETARY BUSINESS AND DEFENSERELATED INFORMATION LAST WEEK THE BOARD RELEASED SEVEN EDITED PAGES AND SAID MORE PAGES WOULD BE RELEASED IN COMING WEEKS THE AIR FORCE CONTRACT HAS BEEN WIDELY WATCHED BECAUSE OF ITS SIZE IT CALLS FOR THE DELIVERY OF 300000 PERSONAL COMPUTERS OVER THREE YEARS AND BECAUSE IT IS THE FIRST BIG TEST OF THE PENTAGON'S FASTTRACK BIDDING PROCESS DESIGNED TO SPEED UP DEFENSE PROCUREMENT ZENITH A UNIT OF FRANCE'S CIE DES MACHINES BULL WON THE CONTRACT IN SEPTEMBER AFTER IT JOINED OTHER LOSING BIDDERS IN SUCCESSFULLY PROTESTING THE INITIAL AWARD TO TWO PRIVATE COMPUTER CONCERNS ANALYSTS SAY THE PORTIONS OF THE RULING RELEASED SO FAR LEAVE MANY QUESTIONS UNANSWERED SINCE THEY DON'T SAY WHETHER THE CONTRACT SHOULD BE AWARDED TO EXISTING BIDDERS REOPENED FOR BIDDING OR CANCELED ENTIRELY AN AIR FORCE SPOKESMAN SAID THE PENTAGON IS STUDYING THE RULING AND DECLINED COMMENT IT'S GETTING WEIRDER BY THE MINUTE SAID ROBERT DORNAN VICE PRESIDENT OF FEDERAL SOURCES INC A MCLEAN VA MARKET RESEARCH FIRM THE PANEL SAID THAT ZENITH'S MONITORS WEREN'T MANUFACTURED IN ONE OF 50 SOCALLED APPROVED COUNTRIES NAMED IN A 1979 TRADE ACT THE MONITORS ALSO WEREN'T SUFFICIENTLY CHANGED IN THE COMPANY'S US ASSEMBLY PROCESS TO CONFORM WITH FEDERAL TRADE REQUIREMENTS THE PANEL SAID WE'RE DOING THE SAME THING THAT IS BEING DONE BY EVERY OTHER MONITOR MANUFACTURER IN THE WORLD SAID TOM BUCHSBAUM A ZENITH VICE PRESIDENT THEY ARE HOLDING US TO A VERY HIGH STANDARD MR BUCHSBAUM SAID ZENITH PLANNED TO APPEAL THE MONITOR PORTION OF THE RULING THE PANEL IN ANOTHER MAJOR OBJECTION TO THE AIR FORCE DECISION FAULTED THE SERVICE FOR NOT CONSIDERING MULTIPLE BIDS FOR THE COMPUTER WORK THE GSA PANEL CHASTISING THE AIR FORCE FOR ITS CURSORY REVIEW OF THE ISSUE SAID THAT USING MORE THAN ONE VENDOR COULD LOWER THE PRICE TAG FOR THE GOVERNMENT AND CUSHION IT AGAINST SUPPLY SHORTAGES ZENITH IN A NEWS RELEASE SAID THE AIR FORCE CONSIDERED MULTIPLE VENDORS BUT REJECTED THE IDEA IN AN EFFORT TO ENSURE COMPATIBLE PRODUCTS AND LOWER TRAINING COSTS THOUGH THE PANEL HAS SAID IT COULD TAKE WEEKS BEFORE ITS ENTIRE RULING IS RELEASED MR DORNAN EXPECTS QUICK ACTION FROM THE AIR FORCE THE AIR FORCE WANTS TO GET THIS THING OVER WITH HE SAID THEY'RE LOOKING FOR THE PATH OF LEAST RESISTANCE 9301040145 930104 BUSINESS BRIEF FISERV TO PAY 965 MILLION TO ACQUIRE A FIRST FINANCIAL MANAGEMENT UNIT MILWAUKEE FISERV INC AGREED TO PAY 965 MILLION FOR FIRST FINANCIAL MANAGEMENT CORP'S BASIS INFORMATION TECHNOLOGIES UNIT THE DEFINITIVE PACT CALLS FOR FISERV WHICH PROVIDES DATAPROCESSING SERVICES TO FINANCIAL INSTITUTIONS TO PAY HALF THE PURCHASE PRICE IN CASH AND HALF IN FISERV STOCK FIRST FINANCIAL MANAGEMENT AN ATLANTA INFORMATIONSERVICES CONCERN SAID IT EXPECTS TO RECORD A LOSS OF 65 MILLION TO 75 MILLION ON THE TRANSACTION WHICH WILL BE INCLUDED IN FOURTHQUARTER RESULTS THE SALE OF BASIS COMPLETES OUR RESTRUCTURING AND WILL ALLOW THE COMPANY TO FOCUS ON ITS CORE BUSINESSES INCLUDING PROCESSING CREDITCARD TRANSACTIONS AND VERIFYING CHECKS FIRST FINANCIAL SAID THE COMPANY LAST MONTH AGREED TO SELL ITS GEORGIA FEDERAL BANK THRIFT OPERATION TO FIRST UNION CORP AND EARLIER CLOSED THE SALE OF ITS FIRST FAMILY CONSUMERLOAN BUSINESS TO A FORD MOTOR CO UNIT BASIS PROVIDES DATAPROCESSING SERVICES TO 1260 BANKS AND THRIFTS A NUMBER THAT WILL DOUBLE OR NEARLY DOUBLE FISERV'S CLIENT BASE IN EACH CATEGORY REVENUE AT ABOUT 100 MILLION A YEAR ISN'T ANYWHERE NEAR AS LARGE FISERV'S REVENUE TOTALED 2473 MILLION THROUGH THE FIRST NINE MONTHS OF LAST YEAR BASIS WAS IN 1991 THE CAUSE OF AN EMBARASSING DOWNWARD RESTATEMENT OF THE FIRST NINE MONTHS' EARNINGS FOR PARENT FIRST FINANCIAL MANAGEMENT AFTER CHANGING ACCOUNTING SYSTEMS AND ELIMINATING SOME ACCOUNTING STAFF THE UNIT LOST TRACK OF CERTAIN BALANCESHEET ITEMS MORE RECENTLY IT SUED INTERNATIONAL BUSINESS MACHINES CORP ALLEGING BREACH OF CONTRACT OVER WHAT IT TERMED IBM'S FAILURE TO SUPPLY ENOUGH STAFF UNDER AN AGREEMENT TO TRAIN BASIS PERSONNEL AND INSTALL NEW SOFTWARE THAT SUIT WAS SETTLED OUT OF COURT 9301040144 930104 HIBERNIA SALE TO COMERICA NEW ORLEANS HIBERNIA CORP SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF ITS TEXAS BANK TO COMERICA INC FOR 562 MILLION THE SALE OF THE TEXAS UNIT WAS PART OF HIBERNIA'S PLAN TO MEET REGULATORY CAPITAL REQUIREMENTS BY SHRINKING ITS ASSETS AND RESTRUCTURING 994 MILLION OF DEBT PROCEEDS FROM THE SALE WILL BE USED TO BOLSTER CAPITAL OF HIBERNIA'S LOUISIANA BANK WHICH WAS HARD HIT BY LOSSES ON LOANS FOR LEVERAGED BUYOUTS AND COMMERCIAL REAL ESTATE AND TO PROVIDE OPERATING FUNDS FOR THE PARENT COMPANY 9301040143 930104 WORLD MARKETS ONEWAY SIGN FOR BRUSSELS SHARES POINTS UP ON EXPECTED RELIEF FROM HIGH EUROPEAN RATES BY PETER R GREIFF SPECIAL TO THE WALL STREET JOURNAL BRUSSELS WITH RELIEF FROM HIGH EUROPEAN INTEREST RATES IN SIGHT THIS YEAR SHARES ON THE BRUSSELS MARKET HAVE NOWHERE TO GO BUT UP IN THE FIRST QUARTER MANY ANALYSTS AND STOCKBROKERS BELIEVE THERE IS CONFIDENCE IN A LOWERING OF INTEREST RATES BUT THE PROBLEM IS WHEN SAID NATHALIE MAERTENS A FINANCIAL ANALYST WITH GENERALE DE BANQUE SA IN BRUSSELS AFTER A RETREAT IN LAST YEAR'S THIRD QUARTER WHICH REFLECTED DWINDLING BELGIAN CORPORATE PROFITS RISING GERMAN INTEREST RATES AND EUROPEAN COMMUNITY DISARRAY BELGIAN SHARES HAD A MIXED PERFORMANCE IN THE FOURTH QUARTER THE BEL20 INDEX LAST YEAR GAINED 32 TO 112702 THE 1992 HIGH OF 124290 WAS REACHED ON MARCH 4 AND THE LOW OF 103853 ON SEPT 2 NOW WITH EUROPEAN ECONOMIES SWINGING INTO RECESSION ANALYSTS SAID GERMAN INTEREST RATES HAVE PEAKED AND MOST BELIEVE THE GERMAN BUNDESBANK THE CENTRAL BANK WILL CUT ITS OFFICIAL RATES AS A RESULT INVESTORS ARE LIKELY TO START SHIFTING FUNDS INTO EQUITIES EARLY IN THE FIRST QUARTER IN ANTICIPATION OF A GERMAN EASING THAT COULD RIPPLE THROUGH EUROPE INVESTORS ARE NOT GOING TO WAIT UNTIL THEY CUT RATES SAID AN INVESTMENT FUND MANAGER WITH GENERALE DE BANQUE THE TRICKLE COULD BECOME A FLOOD ONCE ANY SOLID SIGNS OF AN EASING OF SHORTTERM RATES ARE DETECTED IT COULD ALL HAPPEN IN JUST A COUPLE OF DAYS SAID FRITZ MERTENS AN ACCOUNT MANAGER WITH PETERBROECK VAN CAMPENHOUT & CIE THERE IS A LOT OF CASH AVAILABLE BECAUSE OF MOUNTING POLITICAL UNCERTAINTY IN GERMANY HE SAID NEIGHBORING BELGIUM AND THE NETHERLANDS COULD BE MAGNETS FOR FUNDS NORMALLY DRAWN TO GERMAN SHARES EVEN WITHOUT A BUNDESBANK EASING ANALYSTS SAID MOST BAD NEWS FOR THE BRUSSELS STOCK MARKET A SPUTTERING BELGIAN ECONOMY AND EXPECTED DIVIDEND CUTS HAS ALREADY BEEN DISCOUNTED IN BELGIAN SHARE PRICES LIMITING THE POTENTIAL FOR FURTHER LOSSES EVEN IF THE BUNDESBANK DOES NOTHING THE INDEX COULD INCREASE BY 3 TO 4 SAID GUY LERMINIAUX AN ANALYST WITH DEWAAY & CIE HE FORECAST A RISE OF AT LEAST 10 IF THE BUNDESBANK CONVINCINGLY CUTS RATES ANALYSTS SAID THE FIRST SHARES TO BENEFIT FROM LOWER LENDING RATES WOULD BE TRADITIONAL DEFENSIVE INTEREST RATESENSITIVE SHARES LATER CYCLICAL INDUSTRIAL SHARES SUCH AS STEEL AND CHEMICAL COMPANIES COULD BEGIN TO STAGE RECOVERIES AMONG THE DEFENSIVE SHARES VIEWED AS EARLY GAINERS ARE THE UTILITY ELECTRABEL AND BELGIUM'S COMMERCIAL BANKS ANALYSTS SAID THE PROSPECT OF LOWER RATES COULD PUSH THESE SHARES HIGHER AS LARGE FUNDS RETURN TO THE MARKET IN THE FIRST QUARTER BUT SOME ANALYSTS CONSIDER ELECTRABEL A HOLD AT CURRENT PRICES SAYING INTERESTRATE EXPECTATIONS ARE ALREADY FACTORED IN AMONG THE BANKS MOST ANALYSTS FAVOR GENERALE DE BANQUE OR KREDIETBANK OVER BANQUE BRUXELLES LAMBERT WHICH THEY SAID IS A MORE SPECULATIVE SHARE THOUGH SOME ANALYSTS PUT KREDIETBANK ON THE VERGE OF A SELL RECOMMENDATION AT CURRENT PRICES BANQUE BRUXELLES SHARES FELL 10 IN THE FOURTH QUARTER WHEN THE DUTCH FINANCIAL CONCERN INTERNATIONALE NEDERLANDEN GROEP WITHDREW A TENTATIVE TAKEOVER BID THE BANK WAS DOWN 42 FOR THE YEAR CYCLICAL SHARES WHICH ARE EXPECTED TO BENEFIT FROM LOWER INTEREST RATES AND IMPROVED CHANCES FOR ECONOMIC RECOVERIES INCLUDE COMPANIES THAT ARE DOLLARBASED OR DIVERSIFIED SUCH AS THE CEMENT MAKER CIMENTERIES WHICH LOGS HALF ITS SALES IN THE US AND CANADA WHERE ECONOMIC REBOUNDS ARE ALREADY UNDER WAY THE STEEL WIRE MAKER BEKAERT WHICH HAS RETURNED TO PROFITABILITY AFTER A RESTRUCTURING AND THE CHEMICAL AND SHIPPING LINE CMB AMONG BLUE CHIPS ANALYSTS WARNED AGAINST PETROFINA FOR WHICH THEY EXPECT MORE SELLERS THAN BUYERS PETROFINA WAS OFF 30 FOR 1992 THE STOCK'S DECLINE STARTED WHEN THE COMPANY REPORTED IN AUGUST A 57 DROP IN FIRSTHALF EARNINGS IT HAS SINCE SAID IT EXPECTS TO POST A SIMILAR DECLINE FOR THE YEAR AND HAS HALVED ITS DIVIDEND IF YOU WANT TO INVEST IN OIL THERE ARE BETTER STOCKS SAID DEWAAY'S MR LERMINIAUX BUT SOME ANALYSTS RATE PETROFINA A HOLD AT CURRENT PRICES DELHAIZE WHICH HAS TUMBLED SINCE ITS FOOD LION UNIT IN THE US CAME UNDER SCRUTINY FOR ALLEGEDLY UNHYGIENIC FOOD HANDLING AND WHICH COULD SLIP A BIT FURTHER IS CONSIDERED CORRECTLY PRICED AND A LONGTERM HOLD THE STOCK LOST 21 LAST YEAR THE CHEMICAL MAKER SOLVAY MEANWHILE IS RATED A BUY BY SOME ANALYSTS THE HOLDING COMPANY SOCIETE GENERALE DE BELGIQUE AFTER LANGUISHING FOR MONTHS ALSO COULD BE POISED TO RECOVER ON BRIGHTENED PROSPECTS FOR SOME OF ITS UNITS ANALYSTS SAID THE STOCK LAST YEAR GAINED 38 SOME SMALLER SHARES CONSIDERED TO BE POSSIBLY OVERVALUED INCLUDE THE VIDEO SCREEN MAKER BARCO THE RETAILER COLRUYT THE AMUSEMENT PARK OPERATOR WALIBI AND THE HOLDING COMPANY FLORIDIENNE MEANWHILE IN TOKYO TRADING THE NIKKEI 225STOCK INDEX FINISHED MONDAY'S MORNINGONLY TRADING AT 1699408 UP 6913 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 9301040142 930104 FOREIGN EXCHANGE AS PLAYERS REFOCUS ON EUROPEAN SYSTEM SPECULATIVE ATTACK IS EXPECTED ON FRANC BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AS CURRENCY DEALERS RETURN TO THEIR TRADING FLOORS THIS WEEK THEY WILL TAKE AIM AGAIN AT THE FRAGILE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM THE IRISH PUNT IS CONSIDERED PARTICULARLY VULNERABLE LINKED AS IT IS TO THE DEVALUED POUND BY HEAVY IRISHBRITISH TRADE FLOWS BUT TRADERS AND ANALYSTS SAY THE FRANC IS THE MAIN TARGET BECAUSE IT IS A LINCHPIN TOGETHER WITH THE MARK OF THE ERM IT MAY BE VULNERABLE BECAUSE OF MOUNTING PRESSURE FOR A CUT IN FRENCH INTEREST RATES SAY TRADERS THERE WILL BE ANOTHER ATTACK SAYS LISA FINSTROM CURRENCY ANALYST AT LEHMAN BROTHERS TRADERS DISAGREE ABOUT THE FRANC'S VULNERABILITY TO A SPECULATIVE ASSAULT SOME EXPECT A NEW ASSAULT TO BE MORE DIFFICULT THAN LAST SEPTEMBER'S BATTLE WHEN THE ERM'S LATEST TROUBLES BEGAN THE LIKELY FOCUS ON THE ERM LEAVES THE DOLLAR ON THE SIDELINES THE DOLLAR BENEFITED FROM SEPTEMBER'S TURMOIL IN THE EUROPEAN MONETARY SYSTEM AS INVESTORS TOOK REFUGE IN THE US BUT AS THE MARK STRENGTHENS AGAINST ITS EUROPEAN COUNTERPARTS THE DOLLAR TENDS TO WEAKEN OFFSETTING SOME OF ITS FLIGHTTOQUALITY GAINS LATE THURSDAY THE DOLLAR TRADED AT 16209 MARKS AND 12484 YEN COMPARED WITH 15980 MARKS AND 12390 YEN AT THE END OF THE PREVIOUS WEEK AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 12489 YEN AND 16298 MARKS SPECULATORS WILL BE BETTING THAT FRANCE WILL DEVALUE THE FRANC OR WITHDRAW IT FROM THE ERM RATHER THAN MAINTAIN PAINFULLY HIGH INTEREST RATES AT A TIME OF SLOW ECONOMIC GROWTH AND RISING UNEMPLOYMENT HIGH RATES ARE NECESSARY TO DEFEND THE FRANC AS LONG AS GERMANY MAINTAINS A TIGHT MONETARY POLICY TO COMBAT INFLATION AND RAPID MONEYSUPPLY GROWTH TRADERS KNOW HOWEVER THAT THE FRANC WILL PROVE MORE RESILIENT THAN THE POUND OR LIRA THAT'S PARTLY BECAUSE THE FRANC'S CURRENT EXCHANGE RATE WITH THE MARK IS FUNDAMENTALLY SOUND ECONOMISTS SAY THE FRENCH AREN'T HAVING TRADE PROBLEMS IN TERMS OF PURCHASING POWER THE FRANC IS FAIRLY VALUED AGAINST THE DEUTSCHE MARK SAYS SANDY BATTEN SENIOR ECONOMIST AT CITIBANK AT THE SAME TIME THE EUROPEANS WILL PROBABLY MOUNT A STRONG DEFENSE THE FRENCH AND GERMANS WILL DO WHAT THEY CAN TO HOLD THE LINE SAYS LEHMAN'S MS FINSTROM FOR THE FRANC TO DECOUPLE FROM THE ERM WOULD DO PSYCHOLOGICAL DAMAGE TO THE WHOLE PROCESS OF EUROPEAN MONETARY UNION THE BANK OF FRANCE AND THE GERMAN BUNDESBANK INTERVENED AGGRESSIVELY IN THE CURRENCY MARKETS LATE LAST YEAR BUYING FRANCS AND SELLING MARKS AS THE FRENCH CURRENCY WEAKENED AND FRANCE HAS KEPT ITS INTEREST RATES WELL ABOVE ITS MODEST INFLATION RATE TO DEFEND THE FRANC'S CURRENT LEVEL WITHIN THE ERM SOME MARKET PLAYERS EXPECT SPECULATORS TO STOP SELLING FRANCS WHEN THE MONETARY AUTHORITIES FAIL TO CAPITULATE WE DON'T THINK THERE WILL BE THE SAME SIZE ATTACK AS THE LAST TWO SAYS BARRY CALDER SENIOR FOREIGN EXCHANGE DEALER AT BANQUE NATIONALE DE PARIS IN NEW YORK IT WILL BE A SLOWER GO AS A LOT OF THE SPECULATORS ARE LOSING INTEREST BUT OTHERS QUESTION WHETHER THE FRANC CAN BE DEFENDED AND ANTICIPATE FURTHER DAMAGE TO THE EMS IF THE ALLIANCE BETWEEN THE FRENCH AND THE GERMANS IS BROKEN THAT'S GOING TO MAKE STEERING THE ERM CAR VERY DIFFICULT SAYS TOM CARROLL BANK OF AMERICA'S FLOOR CURRENCY ANALYST AT THE CHICAGO MERCANTILE EXCHANGE ONLY A CUT IN GERMAN INTEREST RATES WILL SAVE THE FRANC AND THAT MAY NOT COME SOON ENOUGH SAYS MR BATTEN THE CRITICAL ISSUE IS WHEN DOES THE BUNDESBANK FINALLY BLINK AND PROVIDE INTERESTRATE RELIEF HE SAYS AS SOON AS THAT HAPPENS PRESSURES WILL SUBSIDE CONSIDERABLY MR BATTEN EXPECTS THE BUNDESBANK TO EASE MONETARY POLICY AS EARLY AS THE FIRST QUARTER OF 1993 MODERATING MONEYSUPPLY GROWTH AND SLOWER GROWTH IN DEMAND FOR CREDIT HE SAYS WILL ALLOW THE CENTRAL BANK TO LOWER RATES AND REVIVE GERMANY'S STRUGGLING ECONOMY 9301040141 930104 PEOPLE PATTERNS BY ALAN L OTTEN THE HOMEALONE TREND SLOWED IN THE 1980S AFTER A SURGE IN THE 1970S THE CENSUS BUREAU SAYS IN WHAT ALMOST LOOKS LIKE A HOLLYWOOD TIEIN THE BUREAU REPORTS THAT THE NUMBER OF PEOPLE LIVING ALONE MORE THAN DOUBLED TO 226 MILLION IN 1990 FROM 112 MILLION IN 1970 MOST OF THAT GROWTH HOWEVER TOOK PLACE DURING THE '70S BY 1980 THE NUMBER HAD ALREADY RISEN TO 183 MILLION THE HOMEALONERS ACCOUNTED FOR JUST UNDER ONEFOURTH OF ALL HOUSEHOLDS IN 1990 UP FROM 227 IN 1980 AND 175 IN 1970 CENSUS ANALYST JEANNE WOODWARD SUGGESTS VARIOUS FACTORS BESIDES POPULATION GROWTH ACCOUNTING FOR THE 20YEAR INCREASE A GENERALLY HEIGHTENED DESIRE FOR PRIVACY AN INCREASE IN YOUNG ADULTS DELAYING MARRIAGE AN INCREASE IN OLDER PEOPLE WHO NEVER MARRIED OR WHO LIVE ALONE FOLLOWING DIVORCE OR DEATH OF A SPOUSE AND MORE WELLTODO ELDERLY SHE BELIEVES THE SLOWER GROWTH IN THE 1980S STEMMED CHIEFLY FROM HIGH HOUSING COSTS THAT KEPT MANY YOUNG ADULTS RESIDING WITH PARENTS IN 1989 THE LATEST YEAR FOR WHICH A DETAILED BREAKDOWN IS AVAILABLE WOMEN LIVING ALONE OUTNUMBERED LONE MALES BY ABOUT THREE TO TWO THE WOMEN WERE ALSO CONSIDERABLY OLDER WITH A MEDIAN AGE OF 66 VS 42 FOR THE MEN AND WERE FAR MORE LIKELY THAN MEN TO OWN THEIR OWN HOMES RATHER THAN TO RENT MOST WOMEN LIVING ALONE WERE WIDOWS WHILE AMONG LIVEALONE MEN NEVERMARRIEDS WERE THE LARGEST GROUP ABOUT 85 OF ALL THOSE LIVING ALONE WERE WHITE INCLUDING HISPANICS WHILE 13 WERE BLACK AND 2 WERE OTHER RACES SLIGHTLY OVER HALF RENTED RATHER THAN OWNED TYPICAL LIVEALONE RENTERS PAID ABOUT 28 OF THEIR CURRENT INCOME FOR HOUSING COMPARED WITH 23 FOR LIVEALONE HOMEOWNERS MORE THAN THREEFOURTHS OF ALL LIVEALONERS WERE IN METROPOLITAN AREAS DIVIDED ABOUT EQUALLY BETWEEN CITIES AND SUBURBS ONETHIRD OF ALL THE SINGLEPERSON HOUSEHOLDS WERE IN THE SOUTH FAMILY MEANS DIFFERENT THINGS TO DIFFERENT PEOPLE A ROPER ORGANIZATION SURVEY FINDS SOME 2000 REPRESENTATIVE ADULTS WERE ASKED WHICH OF VARIOUS TYPES OF HOUSEHOLDS MET THEIR DEFINITION OF A FAMILY ALMOST EVERYONE AGREED THAT A MARRIED COUPLE LIVING WITH THEIR CHILDREN CLEARLY MET THE TEST ALMOST AS UNANIMOUS WAS THE VOTE FOR A MARRIED COUPLE LIVING WITH CHILDREN FROM A PREVIOUS MARRIAGE BUT THEN THE RESULTS BECAME LESS PREDICTABLE ONE OUT OF 10 SAID THEY WOULDN'T GIVE THE FAMILY TITLE TO A CHILDLESS MARRIED COUPLE EIGHTYFOUR PERCENT THOUGHT A DIVORCED MOTHER LIVING WITH HER CHILDREN CONSTITUTED A FAMILY BUT ONLY 80 BELIEVED THE TERM COVERED A DIVORCED FATHER LIVING WITH HIS CHILDREN WHILE 81 AGREED THAT A NEVERMARRIED MOTHER LIVING WITH HER CHILDREN CONSTITUTED A FAMILY ONLY 73 THOUGHT THE TERM APPLIED TO AN UNWED FATHER LIVING WITH HIS CHILDREN BARELY THREE OUT OF FOUR RESPONDENTS WERE READY TO APPLY THE TERM TO AN UNMARRIED COUPLE WHO HAD LIVED TOGETHER FOR A LONG TIME AND WERE RAISING THEIR CHILDREN AND ONLY SLIGHTLY OVER HALF THOUGHT THE TERM APPLIED TO AN UNMARRIED CHILDLESS COUPLE THAT HAD LIVED TOGETHER FOR A LONG TIME ONLY ABOUT ONEFOURTH WOULD SAY THE FAMILY TERM INCLUDED A LESBIAN COUPLE LIVING WITH CHILDREN THEY WERE RAISING AS THEIR OWN OR TO A SIMILARLY SITUATED MALE HOMOSEXUAL COUPLE WHILE ONLY ONE OUT OF FIVE THOUGHT FAMILY COVERED TWO GAY MEN OR WOMEN COMMITTED TO EACH OTHER AND LIVING TOGETHER THE PUBLIC STILL DOES NOT APPLY THE TERM 'FAMILY' TO HOUSEHOLD GROUPINGS BASED ON HOMOSEXUAL RELATIONSHIPS ROPER NOTES TEENAGE SMOKERS LIKE OLDER ONES FIND IT HARDER TO QUIT THAN EXPECTED BASED ON A LARGE SAMPLE OF 12 TO 18YEAROLDS THE NATIONAL CENTER FOR HEALTH STATISTICS ESTIMATES THAT ABOUT 16 OF AMERICAN TEENS SMOKE 15 ARE FORMER REGULAR SMOKERS AND ABOUT 29 HAVE EXPERIMENTED WITH SMOKING AT SOME TIME AMONG 16 TO 18YEAROLDS ABOUT ONEFOURTH ARE CURRENT SMOKERS WHILE 24 ARE FORMER SMOKERS AND ANOTHER ONETHIRD HAVE EXPERIMENTED WITH SMOKING A MAJORITY OF CURRENT TEENAGE SMOKERS SAY THEY EXPECT TO GIVE UP SMOKING WITHIN A YEAR THE CENTER REPORTS YET THREE OUT OF FOUR ADMIT HAVING ALREADY MADE AT LEAST ONE SERIOUS AND OBVIOUSLY UNSUCCESSFUL ATTEMPT TO QUIT TEENAGE GIRLS ARE AS LIKELY TO BE CURRENT SMOKERS AS BOYS WHILE WHITE TEENAGERS ARE ALMOST THREE TIMES MORE LIKELY TO SMOKE THAN BLACKS OLDER SIBLINGS AND CLOSE FRIENDS STRONGLY INFLUENCE TEENAGE SMOKING HABITS THE SURVEY FINDS TEENAGERS ARE THREE TIMES MORE LIKELY TO SMOKE IF THEIR PARENTS AND AT LEAST ONE OLDER SIBLING SMOKE THAN IF NO ONE IN THE FAMILY SMOKES BUT ADOLESCENTS IN HOMES WHERE ONLY OLDER SIBLINGS SMOKE ARE TWICE AS LIKELY TO BE SMOKERS AS THOSE IN HOMES WHERE ONLY THE PARENTS SMOKE ALMOST HALF OF TEENAGERS WITH AT LEAST TWO BEST FRIENDS WHO SMOKE ARE SMOKERS THEMSELVES WHEREAS TEENAGERS WITH NO SMOKERS AMONG BEST FRIENDS OF THE SAME SEX PRACTICALLY NEVER SMOKE THEMSELVES TEENAGERS WHO DON'T TAKE PART IN TEAM SPORTS OR OTHER ORGANIZED ACTIVITIES OR WHO ARE BELOWAVERAGE STUDENTS WERE FOUND TO BE ANYWHERE FROM TWO TO FOUR TIMES MORE LIKELY TO BE SMOKERS THAN THOSE WHO DO WELL IN SCHOOL OR ENGAGE IN SPORTS AND OTHER PHYSICAL ACTIVITIES DRUNKEN DRIVERS TEND TO BE REPEAT OFFENDERS ACCORDING TO THE GOVERNMENT'S BUREAU OF JUSTICE STATISTICS MORE THAN HALF OF THE PEOPLE SERVING TIME IN 1989 FOR DRIVING WHILE INTOXICATED HAD PRIOR DWI CONVICTIONS AND ONE IN SIX HAD SERVED AT LEAST THREE PREVIOUS SENTENCES FOREIGNBORN RESIDENTS IN THE US NOW NUMBER ALMOST 20 MILLION AND NEARLY ONEFOURTH ENTERED BETWEEN 1985 AND 1990 THE CENSUS BUREAU REPORTS MEXICO IS THE LARGEST SOURCE OF FOREIGNBORN RESIDENTS ACCOUNTING FOR BETTER THAN ONE IN FIVE WITH THE PHILIPPINES AND CANADA A DISTANT SECOND AND THIRD 9301040139 930104 YEAREND REVIEW OF UNDERWRITING DRIVE TO RAISE CAPITAL IS LIKELY TO CONTINUE FROM 1992 WHEN STOCK BOND ISSUES SMASHED PRIOR YEAR RECORD BY 44 BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CORPORATE AMERICA'S POWERFUL DRIVE TO RAISE CAPITAL SHIFTED INTO HIGH GEAR IN 1992 AND IS LIKELY TO KEEP CRUISING RIGHT THROUGH 1993 THE VOLUME OF NEW US STOCK AND BOND ISSUES TOTALED 8512 BILLION IN 1992 SMASHING THE PRIOR YEAR'S RECORD BY 44 AND NEARLY TRIPLING THE CAPITAL RAISED IN 1990 ACCORDING TO SECURITIES DATA CO A NEWARK NJ COMPANY THAT TRACKS CORPORATEFINANCE ACTIVITY ON WALL STREET MERRILL LYNCH & CO RETAINED ITS UNDERWRITING CROWN FOR THE FIFTH CONSECUTIVE YEAR THE US'S LARGEST BROKERAGE FIRM DOMINATED MANY UNDERWRITING SECTORS AND HAD A 165 MARKET SHARE OVERALL RUNNERUP GOLDMAN SACHS & CO BENEFITING FROM A STRONG SHOWING IN STOCK UNDERWRITING HAD A 123 MARKET SHARE WHILE THE LEHMAN BROTHERS DIVISION OF SHEARSON LEHMAN BROTHERS INC RANKED NO 3 WITH AN 117 SHARE OF THE UNDERWRITING PIE THE PACE OF UNDERWRITING ACTIVITY WAS SO SWIFT THAT ANNUAL RECORDS WERE BROKEN IN NEARLY ALL SECTORS OF THE STOCK AND BOND UNDERWRITING MARKETS BY THE THIRD QUARTER THE MOST SIGNIFICANT SURGE WAS THE RECORD VOLUME OF INITIAL PUBLIC STOCK OFFERINGS THIS CAPITAL FOR THE GROWTH SECTOR OF THE ECONOMY IS EXTREMELY IMPORTANT FOR THE LONGTERM ECONOMIC PROSPECTS OF THE ECONOMY SAID RICHARD BREEDEN CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION IN A RECENT SPEECH TO SECURITIES EXECUTIVES WITH BETTER ACCESS TO CAPITAL THESE COMPANIES WILL PROVIDE NOT ONLY JOBS AND GROSS DOMESTIC PRODUCT GROWTH BUT ALSO NEW TECHNOLOGY PRODUCTIVITY AND POSSIBLY WHOLE NEW INDUSTRIES MR BREEDEN SAID WHAT LED TO LAST YEAR'S OVERALL UNDERWRITING FRENZY WAS A POTENT COMBINATION OF LOW INTEREST RATES A MOVE BY US CORPORATIONS TO SLASH THEIR DEBT BURDENS AND STRONG LEVELS OF FINANCING IN THE WORLD'S EMERGING MARKETS PARTICULARLY THROUGH PRIVATIZATIONS THESE FACTORS ALL REMAIN IN PLACE PORTENDING ANOTHER ROBUST YEAR FOR UNDERWRITING WALL STREET EXECUTIVES SAY THE OUTLOOK FOR THE FIRST THREE TO SIX MONTHS IS PRETTY STRONG SAYS THOMAS W DAVIS HEAD OF STOCK CAPITAL MARKETS AT MERRILL SAYS MICHAEL D MADDEN COHEAD OF INVESTMENT BANKING AT LEHMAN BROTHERS I SEE INVESTORS AS WELL AS CORPORATE ISSUERS READY TO ROLL IN '93 WITH AN OPTIMISTIC OUTLOOK TOWARD THE ECONOMY AND INTEREST RATES OF COURSE A SUDDEN SURGE IN INTEREST RATES OR A BIG STOCK MARKET PLUNGE COULD DERAIL THE UNDERWRITING EXPRESS THE NEWISSUE WINDOW CAN SHUT PRETTY QUICKLY SAYS JOSEPH HARDIMAN PRESIDENT OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS STILL AS LONG AS STOCKS PARTICULARLY SMALL STOCKS REMAIN EBULLIENT MR HARDIMAN SAYS THE EQUITY UNDERWRITING WINDOW WILL REMAIN OPEN WITH INTEREST RATES ON MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT CONTINUING TO EBB INVESTORS FLOCKED TO NEW STOCK ISSUES IN DROVES DURING 1992 THE VOLUME OF COMMONSTOCK OFFERINGS SURGED TO A RECORD 724 BILLION UP 29 FROM THE PRIOR RECORD OF 56 BILLION SET IN 1991 NEW STOCK OFFERINGS OF EXISTING CORPORATIONS ROSE AN AVERAGE OF 14 DURING 1992 SECURITIES DATA SAID COMPARED WITH A 42 RISE IN THE DOW JONES INDUSTRIAL AVERAGE IN THE YEAR INDIVIDUAL INVESTORS WHO HAD HISTORICALLY PLACED CAPITAL IN HIGHERYIELDING CDS AND BONDS FOUND THAT THE STOCK MARKET AT LEAST IN '92 DELIVERED THE BEST RETURNS SAID SECURITIES DATA'S JOE MILLER WHAT STOLE THE STOCKUNDERWRITING SHOW IN 1992 WAS THE SIZZLING MARKET FOR INITIAL PUBLIC OFFERINGS NEARLY 600 COMPANIES CAME TO MARKET FOR THE FIRST TIME WITH IPO VOLUME TOTALING A RECORD 394 BILLION THIS EASILY SURPASSED THE 251 BILLION RAISED AMONG IPOS IN 1991 AND SHATTERED THE PRIOR RECORD OF 268 BILLION IN 1987 AT TIMES THE IPO MARKET GOT FROTHY WITH MANY IPOS QUICKLY SOARING TO HUGE PREMIUMS OVER THEIR OFFERING PRICES OVERALL IPOS AVERAGED A 20 PRICE SURGE IN 1992 WELL ABOVE 1991'S AVERAGE OF 14 SECURITIES DATA SAYS SOME WALL STREET EXECUTIVES BRUSH ASIDE SUGGESTIONS THAT THE IPO MARKET GOT TOO FEVERISH IT WASN'T AT ALL LIKE THE 1960S WHICH WERE CHAOTIC SAYS THOMAS PATRICK MERRILL'S EXECUTIVE VICE PRESIDENT FOR EQUITIES THE RECORD IPO VOLUME LAST YEAR NEVERTHELESS MASKED SEVERAL IMPORTANT FISSURES IN THE MARKET PARTICULARLY AROUND MIDYEAR DURING 1992 34 OF ALL IPOS OR 168 TRANSACTIONS WERE PRICED BELOW THEIR PROJECTED RANGES DOUBLE THE PERCENTAGE OF 1991 SECURITIES DATA SAYS SIGNALING MORE SELECTIVITY AMONG INSTITUTIONAL INVESTORS AFTER THE NOVEMBER ELECTION IPO PRICING PRESSURES EASED A BIT INVESTMENT BANKERS SAID WE STARTED SEEING BETTER VALUATIONS AND MANY PEOPLE WERE ABLE TO RAISE THE PRICE AND SIZE OF NEW STOCK TRANSACTIONS SAID JOHN P DUNPHY MANAGING DIRECTOR AND SYNDICATE MANAGER AT COWEN & CO THIS YEAR'S OUTLOOK FOR IPOS LOOKS REASONABLY GOOD BUT NOT FRENETIC MERRILL'S MR PATRICK SAYS SECURITIES DATA IN ITS YEAREND REVIEW SAID OF THE IPO MARKET LOOK FOR ENVIRONMENTAL COMPANIES AND CONSTRUCTION COMPANIES TO BE POPULAR IN 1993 BASED ON MESSAGES BEING DELIVERED BY THE NEW ADMINISTRATION ECONOMIC RECOVERY SHOULD BODE WELL FOR IPOS FROM THE RESTAURANT INDUSTRY AS WELL AS SOFTWARE AND COMPUTERRELATED INDUSTRIES AS INVESTORS GRASPED FOR HIGHER YIELDS THE UNDERWRITING MARKET FOR PREFERREDSTOCK DEALS ALSO CRACKLED WITH BIG TRANSACTIONS BY INDUSTRIAL GIANTS FORD MOTOR CO AND GENERAL MOTORS CORP AMONG OTHERS BUT THE BIGGEST BENEFICIARY OF LAST YEAR'S STEEP DROP IN INTEREST RATES WAS THE BONDUNDERWRITING MARKET THE VOLUME OF NEW BOND ISSUES SOARED TO A RECORD 30916 BILLION IN 1992 MORE THAN THE VOLUME IN 1990 AND 1991 COMBINED ACCORDING TO SECURITIES DATA MANY CORPORATIONS RUSHED TO REFINANCE PREVIOUSLY EXISTING DEBT AT LOWER INTEREST RATES WALL STREET EXECUTIVES AND ANALYSTS ARE SANGUINE ABOUT THIS YEAR'S PROSPECTS FOR THE CORPORATEBOND UNDERWRITING MARKET WE EXPECT AN ACTIVE AND BIG CALENDER IN 1993 SAYS EDSON MITCHELL A MERRILL MANAGING DIRECTOR AND HEAD OF ITS DEBTFINANCING DIVISION 9301040138 930104 YEAREND REVIEW OF UNDERWRITING JUNK BOND ISSUANCE POSTS A STRONG REBOUND PARTLY REFLECTING LATE 1991 GOOD PERFORMANCE BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JUNK WAS GOLDEN IN 1992 CORPORATIONS ISSUED A RECORD 38 BILLION IN NEW JUNK BONDS LAST YEAR AS THE MARKET FOR THE LOWRATED BONDS CONTINUED TO REBOUND FROM ITS NEAR COLLAPSE IN 1990 WHEN ONLY 139 BILLION OF NEW BONDS WAS SOLD THE SURGE IN ISSUANCE CAME AS A SURPRISE TO SOME ANALYSTS WHO HAD EXPECTED THE MARKET TO RECOVER MORE SLOWLY FROM 1990'S JUNK BOND DEBACLE IN 1991 FOR EXAMPLE CORPORATIONS SOLD 997 BILLION OF JUNK BONDS ACCORDING TO SECURITIES DATA CO I DON'T THINK ANYONE EXPECTED THE MARKET TO COME BACK THIS STRONG SAID ROBERT KRICHEFF A DIRECTOR AND MANAGER OF HIGHYIELD RESEARCH AT FIRST BOSTON CORP HE SAID THE REMARKABLE REJUVENATION IN THE NEW ISSUE MARKET PARTLY REFLECTS 1991'S STRONG PERFORMANCE STATISTICS A LOT OF PEOPLE REAPED BIG GAINS IN 1991 AND THAT DREW ATTENTION TO THE MARKET AND MADE INVESTORS FEEL MORE COMFORTABLE ABOUT INVESTING IN 1992 SAID MR KRICHEFF FIRST BOSTON'S JUNK BOND INDEX REGISTERED A TOTAL RETURN OF 438 IN 1991 LAST YEAR THE INDEX POSTED A MORE NORMAL TOTAL RETURN OF 167 WHILE THAT WAS DOWN SHARPLY FROM 1991 IT STILL FAR OUTPACED THE NEGATIVE 64 RETURN IN 1990 AND THE 04 RETURN IN 1989 THE HEAVY ISSUANCE VOLUME ALSO REFLECTS DECLINING DEFAULT RATES WHICH MADE JUNK BONDS EASIER TO SELL TO INVESTORS IN ADDITION FALLING INTEREST RATES ENCOURAGED COMPANIES TO REFINANCE THEIR OLDER HIGHYIELD BONDS WITH LOWERYIELDING SECURITIES INDEED INVESTMENT BANKERS SAY THAT MANY OF THE NEW JUNK BONDS SOLD IN 1992 THE BULK OF WHICH HAD YIELDS RANGING FROM 95 TO 12 REPLACED OLDER JUNK BONDS THAT HAD INTEREST RATES AS HIGH AS 16 BUT AT A TIME WHEN YIELDS ON MOST COMPETING INVESTMENTS WERE RUNNING 3 TO 7 EVEN THE LOWER JUNK BOND YIELDS WERE CONSIDERED APPEALING THOSE LUSCIOUS YIELDS BROUGHT IN BUYERS THAT HADN'T PREVIOUSLY OWNED JUNK BONDS PUTTING ADDITIONAL PRESSURE ON DEMAND PORTFOLIO MANAGERS ARE BEGINNING TO REALIZE THAT THEY HAVE TO BE IN THE HIGHYIELD MARKET THAT'S WHERE THE YIELDS ARE SAID KINGMAN PENNIMAN DIRECTOR OF HIGHYIELD RESEARCH AT DUFF & PHELPS ALTHOUGH ISSUANCE OF NEW JUNK BONDS CLEARLY IS STRONGER THAN EVER AND PERFORMANCE RESULTS REMAIN FAR ABOVE AVERAGE INCREASED COMPETITION AMONG DEALERS FOR A PIECE OF THE JUNK BOND UNDERWRITING BUSINESS CAUSED FEES TO SHRIVEL IN 1981 WHEN NOWDEFUNCT DREXEL BURNHAM LAMBERT INC DOMINATED ISSUANCE IN THE JUNK BOND MARKET UNDERWRITING FEES FROM JUNK BOND OFFERINGS REPRESENTED ABOUT 37 OF PROCEEDS MUCH HIGHER THAN UNDERWRITING FEES IN MOST OTHER SEGMENTS OF THE FIXEDINCOME MARKET THE FEES DECLINED TO ABOUT 32 IN 1982 AND REMAINED AT THAT LEVEL UNTIL 1990 WHEN PLUNGING JUNK BOND PRICES PROMPTED INVESTORS TO FLEE HIGHYIELD SECURITIES IN FAVOR OF LESS VOLATILE ONES THE NEW ISSUE MARKET GROUND TO A HALT AND UNDERWRITING FEES FOR THE HANDFUL OF JUNK BONDS THAT WERE ISSUED THINNED EVEN FURTHER BY LAST YEAR UNDERWRITING FEES WERE TAKING ABOUT 22 OF THE PROCEEDS FROM BOND OFFERINGS STILL HIGHER THAN THE FEES ASSOCIATED WITH INVESTMENTGRADE CORPORATE BOND ISSUANCE BUT FAR LESS LUCRATIVE THAN IN THE PAST FOR THE SECOND CONSECUTIVE YEAR MERRILL LYNCH & CO RANKED FIRST IN JUNK BOND UNDERWRITING COMMANDING A 202 SHARE OF THE TOTAL MARKET ACCORDING TO SECURITIES DATA BUT MERRILL'S GRIP SLIPPED FROM 1991 WHEN THE US'S BIGGEST BROKERAGE FIRM MANAGED 39 OF ALL THE NEW JUNK BOND OFFERINGS SEVERAL OTHER FIRMS PICKED UP MARKET SHARE LAST YEAR FIRST BOSTON'S SHARE ROSE TO 117 FROM 64 DONALDSON LUFKIN & JENRETTE SECURITIES CORP'S SHARE GREW TO 10 FROM 6 AND LEHMAN BROTHERS' SHARE EXPANDED TO 8 UP FROM 35 THERE ARE MORE PLAYERS IN THE MARKET SO IT'S MORE COMPETITIVE SAID FIRST BOSTON'S MR KRICHEFF HOWEVER HE SAID THAT FEES COULD WIDEN DURING 1993 AS THE AVERAGE QUALITY OF NEW JUNK BONDS FURTHER DECLINES BOND DEALERS CHARGE HIGHER FEES TO MANAGE LOWER QUALITY BOND OFFERINGS IN PART TO COMPENSATE THEM FOR THE ADDITIONAL RISK THEY TAKE ON WHEN TRYING TO RESELL THE BONDS TO INVESTORS STATISTICS COMPILED BY JOHN LONSKI A SENIOR ECONOMIST AT MOODY'S INVESTORS SERVICE INC SHOW THAT THE AVERAGE CREDIT QUALITY OF NEW JUNK BONDS ALREADY HAS STARTED TO DECLINE MR LONSKI SAYS THAT SINGLEBRATED JUNK BONDS WHICH ARE CONSIDERED LOWER QUALITY JUNK BONDS ACCOUNTED FOR ABOUT 584 OF TOTAL JUNK BOND ISSUANCE DURING THE FIRST 11 MONTHS OF 1992 THAT WAS UP SHARPLY FROM 266 IN 1991 MEANWHILE BARATED ISSUES MOODY'S HIGHEST JUNK BOND RATING ACCOUNTED FOR 406 OF TOTAL ISSUANCE DOWN FROM 676 IN 1991 MEANWHILE DECLINING DEFAULT RATES AND A REDUCTION IN THE NUMBER OF COMPANIES WHOSE CREDIT RATING WAS DOWNGRADED CONTRIBUTED TO PERCEPTIONS THAT THE JUNK BOND MARKET OF TODAY IS A LITTLE LESS RISKY THAN A FEW YEARS AGO THE BOND INVESTORS ASSOCIATION FOUND THAT 41 ISSUERS DEFAULTED ON 79 BILLION OF BONDS LAST YEAR DOWN SHARPLY FROM 1991 WHEN 107 ISSUERS DEFAULTED ON 233 BILLION OF DEBT AND 1990 WHEN 111 ISSUERS DEFAULTED ON 285 BILLION OF DEBT THE DEFAULT WAVE OF THE 1980S ISSUES APPEARS TO HAVE PRETTY MUCH RUN ITS COURSE SAID RICHARD LEHMANN PRESIDENT OF THE BOND INVESTORS ASSOCIATION WHICH IS BASED IN MIAMI LAKES FLA TOPPING THE LIST OF LARGEST DEFAULTS FOR 1992 WERE RH MACY & CO WHICH DEFAULTED ON 121 BILLION OF BONDS AND EL PASO ELECTRIC CO WHICH DEFAULTED ON 102 BILLION OF BONDS MOODY'S ANTICIPATES THAT DEFAULTS IN 1993 WILL RESEMBLE THOSE IN 1992 BUT ADDED THAT THE AVERAGE SIZE OF THE DEFAULTS WILL PROBABLY DECLINE THE PATTERN OF SMALLER COMPANY DEFAULTS WHICH IS MORE IN LINE WITH HISTORIC EXPERIENCE SUGGESTS CREDIT CONTINUES TO BE ESPECIALLY TIGHT FOR SMALL WEAK FIRMS WITH MORE LIMITED ACCESS TO A VARIETY OF CAPITAL SOURCES THE COMPANY SAID MOODY'S REPORTED THAT DURING 1992 THE RATINGS ON 97 COMPANIES WERE UPGRADED NEARLY MATCHING THE 105 THAT WERE DOWNGRADED IN CONTRAST MOODY'S UPGRADED 82 SPECULATIVE GRADE COMPANIES IN 1991 AND DOWNGRADED 216 9301040137 930104 CAMPBELL SOUP WINS RULING IN ITS EFFORTS TO BUY ARNOTTS LTD CAMDEN NJ CAMPBELL SOUP CO RECEIVED A FAVORABLE RULING IN ITS EFFORTS TO ACQUIRE AUSTRALIAN COOKIE AND CRACKER MAKER ARNOTTS LTD AN AUSTRALIAN COURT RULED THAT A 1985 AGREEMENT BETWEEN CAMPBELL AND ARNOTTS WILL BECOME INVALID IF CAMPBELL HOLDS 40 OF THE AUSTRALIAN COMPANY CAMPBELL HAD ASKED THE SUPREME COURT OF NEW SOUTH WALES TO RULE ON A DISAGREEMENT OVER THE 1985 DOCUMENT THAT LIMITED CAMPBELL'S VOTING IN DIRECTOR ELECTIONS WHILE THE COMPANY HELD LESS THAN 40 OF ARNOTTS'S SHARES ARNOTTS HAD SAID IT WOULD HOLD CAMPBELL TO THAT AGREEMENT EVEN IF CAMPBELL WON A MAJORITY HOLDING CAMPBELL SAID THE RULING CLEARS THE LAST TECHNICAL HURDLE IN ITS BID FOR THE AUSTRALIAN COMPANY NOW THE ISSUE IS IN THE HANDS OF THE SHAREHOLDERS SAID A CAMPBELL SPOKESMAN A SPOKESMAN FOR SCHRODERS AUSTRALIA LTD THE INVESTMENT BANK ADVISING ARNOTTS SAID ARNOTTS WILL LIKELY APPEAL THE DECISION CAMPBELL ALSO SAID IT WILL EXTEND TO JAN 28 FROM JAN 12 ITS TENDER OFFER FOR ARNOTTS CAMPBELL IS OFFERING 88 AUSTRALIAN DOLLARS A SHARE FOR THE ARNOTTS STOCK VALUING ALL OF THE COMPANY AT A123 BILLION 8472 MILLION ALTHOUGH CAMPBELL IS PROHIBITED BY THE AUSTRALIAN GOVERNMENT FROM ACQUIRING THE ENTIRE COMPANY CAMPBELL HAS HELD A 33 STAKE IN ARNOTTS SINCE 1985 ITS OFFER IS CONDITIONAL ON ACQUIRING AT LEAST A 501 STAKE ANALYSTS HAVE SAID THAT CAMPBELL MAY BE FORCED TO RAISE ITS BID BUT THE COMPANY REITERATED LAST WEEK THAT ITS OFFER WAS A FULL AND FAIR ONE ARNOTTS STOCK HAS BEEN TRADING ABOVE CAMPBELL'S OFFER WITH THE TAKEOVER LAUNCHED IN OCTOBER CAMPBELLS SEEKS TO MAKE ARNOTTS A PREMIER BRAND NAME IN ASIA'S RAPIDLY GROWING 2 BILLION COOKIE MARKET CAMPBELL HAS HAD A RELATIVELY SMALL PRESENCE IN THE REGION COMPARED WITH ITS US RIVALS 9301040136 930104 KIMBERLYCLARK REDEMPTION DALLAS KIMBERLYCLARK CORP SAID IT WILL REDEEM ON MARCH 1 THE REMAINING 485 MILLION OF ITS 115 SINKINGFUND DEBENTURES DUE MARCH 1 2013 THE MAKER OF HOUSEHOLD PERSONALCARE AND HEALTHCARE PRODUCTS SAID IT WILL REDEEM THE DEBENTURES AT 10575 OF PAR PLUS ACCRUED INTEREST 9301040135 930104 VF CORP BUYS TWO FIRMS WYOMISSING PA VF CORP SAID IT COMPLETED ITS PREVIOUSLY PROPOSED ACQUISITIONS OF VIVES VIDAL SA OF SPAIN AND ITS AFFILIATE JEAN BELLANGER ENTERPRISES OF PARIS FOR ABOUT 154 MILLION THE PRICE INCLUDES REPAYMENT OF DEBT OF THE TWO EUROPEAN LINGERIE MANUFACTURERS ANNUAL SALES AT THE TWO COMPANIES TOTAL ABOUT 150 MILLION VF IS AN APPAREL COMPANY THAT OWNS THE LEE AND WRANGLER BRAND NAMES 9301040134 930104 DANAHER TO ACQUIRE ANDERSON WASHINGTON DANAHER CORP SAID IT ACQUIRED ANDERSON INSTRUMENT CO A FULTONVILLE NY MAKER OF INSTRUMENTS AND CONTROLS USED IN FLUIDPROCESSING APPLICATIONS TERMS WEREN'T DISCLOSED ANDERSON INSTRUMENT WHOSE 1992 REVENUE IS EXPECTED TO BE ABOUT 10 MILLION WILL BE ADDED TO ITS DANAHER'S PROCESS/ENVIRONMENTAL CONTROLS GROUP DANAHER WHICH HAD REVENUE OF 837 MILLION FOR 1991 IS A MAKER OF TOOLS PROCESS/ENVIRONMENTAL CONTROLS AND TRANSPORTATION PRODUCTS 9301040133 930104 POE & ASSOCIATES ACQUISITION TAMPA FLA POE & ASSOCIATES INC SAID ITS PROPOSAL TO ACQUIRE CLOSELY HELD BROWN & BROWN INC OF DAYTONA BEACH FLA FOR ABOUT 48 MILLION IN STOCK WAS APPROVED BY THE TWO INSURANCE COMPANIES' BOARDS THE TRANSACTION WHICH REQUIRES SHAREHOLDER APPROVAL SHOULD BE COMPLETED WITHIN 60 DAYS POE & ASSOCIATES SAID 9301040132 930104 ECONOMY ECONOMISTS UNCORK PREDICTIONS OF MODEST 1993 GROWTH WITH RATES UP A BIT DOLLAR STRONG AS TRADE RIVALS AIL BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EVEN WITH A NEW CAPTAIN AND FRESH CREW THE US ECONOMY WILL SAIL ONLY SLIGHTLY FASTER IN 1993 THAN IT DID LAST YEAR ACCORDING TO A SURVEY OF ECONOMISTS BY THE WALL STREET JOURNAL NEVERTHELESS THE US PROBABLY WILL BE THE ENVY OF ITS MAJOR TRADING PARTNERS JAPAN GERMANY AND MANY OTHER INDUSTRIAL POWERS ARE HEADING INTO ROUGH SEAS MANY FORECASTERS PREDICT TOUGH TIMES ABROAD WILL MEAN TROUBLE FOR US EXPORTERS ESPECIALLY COMPANIES THAT RELY HEAVILY ON EUROPEANS TO BUY THEIR PRODUCTS ANALYSTS SAY THE MAJOR CONSTRAINT ON US GROWTH IN THE FIRST HALF OF 1993 WILL BE WEAKNESS ABROAD SAYS WILLIAM A BROWN MANAGING DIRECTOR AND CHIEF ECONOMIST AT JP MORGAN & CO THE NEW YEAR WILL BRING MODERATE US ECONOMIC GROWTH AND MILD DECLINES IN THE UNEMPLOYMENT RATE ACCORDING TO THE AVERAGE ESTIMATE OF THE 44 ECONOMISTS IN THE JOURNAL'S SEMIANNUAL SURVEY THE CONSENSUS ALSO CALLS FOR VERY SLIGHT INCREASES IN MOST INTEREST RATES AND A STRONGER US DOLLAR NEARLY ALL OF THE ANALYSTS EXPECT CONGRESS TO APPROVE ECONOMIC STIMULUS MEASURES DESIGNED BY PRESIDENTELECT CLINTON BUT MOST OF THE FORECASTERS PREDICT THAT THESE MEASURES WILL BE RELATIVELY MILD AND THAT THE ECONOMY THIS YEAR WILL BE FAR FROM ROBUST COMPARED WITH THE PAST FOUR YEARS THOUGH 1993 WILL LOOK REFRESHINGLY BRIGHT SAYS ROBERT G DEDERICK EXECUTIVE VICE PRESIDENT AT NORTHERN TRUST CO THE GREAT STAGNATION IS BREAKING UP HE SAYS THE CLINTON EXPANSION IS MOVING ON STAGE MODERATE GROWTH AND LOW INFLATION SHOULD BE GOOD NEWS FOR THE STOCK MARKET MANY ANALYSTS AGREE STOCKS STAND TO BENEFIT FROM STRONGERTHANCONSENSUS CORPORATE EARNINGS SAYS WILLIAM C MELTON VICE PRESIDENT OF IDS FINANCIAL SERVICES INC IN MINNEAPOLIS TAXFREE MUNICIPAL BONDS ALSO WILL SPARKLE IN 1993 ACCORDING TO RICHARD HOEY OF DREYFUS CORP DAVID M JONES OF AUBREY G LANSTON AND MANY OTHERS THEY PREDICT MORE INVESTORS WILL TURN TO TAXFREE BONDS BECAUSE CONGRESS WILL RAISE INCOME TAX RATES ON UPPERINCOME INVESTORS ALSO FEWER NEW MUNICIPAL BONDS WILL BE ISSUED THIS YEAR THAN IN 1992 AND MANY OLD BONDS WILL BE CALLED OR REDEEMED PRIOR TO THEIR SCHEDULED MATURITY DATE BUT MR MELTON SAYS THAT IT IS STILL TOO EARLY FOR A MEANINGFUL ADVANCE IN MOST KINDS OF REAL ESTATE GOLD IS STILL BEING PUNISHED BY THE WORLDWIDE TREND TO LOWER INFLATION AND THE END OF THE COLD WAR ANY REBOUND IN PRECIOUS METALS PRICES WILL BE SHORTLIVED HERE ARE THE AVERAGE FORECASTS AND SOME OTHER PREDICTIONS FROM THE JOURNAL'S LATEST SURVEY MODERATE ECONOMIC GROWTH THE ECONOMY AFTER ADJUSTING FOR INFLATION WILL EXPAND AT A 28 ANNUAL RATE IN THE FIRST HALF AND A 32 CLIP IN THE SECOND HALF ALL 44 ECONOMISTS PREDICT THE ECONOMY WILL BE RECESSIONFREE FOR AT LEAST THE NEXT 12 MONTHS LOWER UNEMPLOYMENT THE CIVILIAN UNEMPLOYMENT RATE WHICH WAS 72 IN NOVEMBER WILL DECLINE TO 7 BY MAY AND 68 NEXT NOVEMBER A GARY SHILLING WHO HEADS A CONSULTING FIRM BEARING HIS NAME OFFERS THE GLOOMIEST FORECAST 83 BY NOVEMBER MODERATE INFLATION CONSUMER PRICES WILL RISE ABOUT 3 THIS YEAR ABOUT THE SAME AS IN 1992'S SECOND HALF SLIGHTLY HIGHER INTEREST RATES THREEMONTH TREASURY BILLS WHICH YIELDED 315 LATE LAST THURSDAY WILL YIELD 341 AT MIDYEAR AND 378 BY DEC 31 THE YIELD ON 30YEAR TREASURY BONDS WHICH ENDED 1992 AT 739 WILL BE 744 AT MIDYEAR AND 749 BY THE END OF THIS YEAR THE RATE ON 30YEAR HOME MORTGAGES WILL ALSO BE LITTLE CHANGED 821 BY MIDYEAR AND 828 BY DEC 31 THE NATIONAL AVERAGE RATE ON 30YEAR FIXEDRATE MORTGAGES NOW IS ABOUT 825 ACCORDING TO HSH ASSOCIATES IN BUTLER NJ A STRONGER DOLLAR THE DOLLAR WHICH CLOSED 1992 AT 125 JAPANESE YEN WILL RISE TO 128 YEN BY MIDYEAR AND 129 YEN BY NEXT DEC 31 BY FAR THE MOST BULLISH FORECAST IS FROM JAMES SMITH OF THE UNIVERSITY OF NORTH CAROLINA HE SEES THE DOLLAR AT 173 YEN BY YEAR END SEVERAL FORECASTERS PREDICT THE DOLLAR WILL POST ESPECIALLY LARGE GAINS IN 1993 AGAINST THE GERMAN MARK NEARLY ALL OF THE ECONOMISTS IN THE JOURNAL SURVEY EXPECT SOME SORT OF GOVERNMENT STIMULUS TO BE ENACTED THIS YEAR BUT BY A 2915 COUNT THEY SAY THE ECONOMY DOESN'T NEED ADDITIONAL STIMULUS AND SOME BELIEVE MORE STIMULUS WOULD BE A BAD IDEA BECAUSE IT MIGHT REKINDLE INFLATION PRESSURES MIDWEST STRENGTH PREDICTED THE MIDWEST WILL BE THE STRONGEST REGION MANY ANALYSTS AGREE MANUFACTURING WILL LEAD THE EXPANSION PREDICTS WILLIAM B HUMMER A PARTNER OF WAYNE HUMMER & CO IN CHICAGO BUSINESSEQUIPMENT SPENDING AROUND THE NATION WILL BE SPURRED BY AN INVESTMENT TAX CREDIT THAT CONGRESS WILL PASS SAYS STUART G HOFFMAN SENIOR VICE PRESIDENT OF PNC FINANCIAL CORP SOUTHERN AND SOUTHWEST STATES WILL ENJOY BRISK GROWTH SAYS DONALD RATAJCZAK OF GEORGIA STATE UNIVERSITY BUT CALIFORNIA AND THE NORTHEAST ARE WIDELY EXPECTED TO TRAIL FAR BEHIND CALIFORNIA IS SUFFERING FROM HEAVY EXPOSURE TO THE DEFENSE SECTOR AND CONTINUED BANKING CONSOLIDATION SAYS MARIA FIORINI RAMIREZ WHO HEADS AN INVESTMENT FIRM BEARING HER NAME MAJOR COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP ALREADY ARE PLANNING MORE LAYOFFS AND WHILE CONSUMER CONFIDENCE HAS SURGED RECENTLY MANY AMERICANS STILL ARE STRUGGLING WITH HEAVY DEBT BURDENS WORRYING ABOUT LOSING THEIR JOBS AND TRYING TO RESTRAIN SPENDING WHATEVER THE CASE THIS ECONOMIC EXPANSION ALREADY IS MUCH LESS VIGOROUS THAN AVERAGE EXPANSIONS SINCE WORLD WAR II NORMALLY THE ECONOMY JUMPS OUT OF A RECESSION LIKE A YEARLING FROM THE STARTING GATE SAYS IRWIN KELLNER CHIEF ECONOMIST AT CHEMICAL BANKING CORP DAVID H RESLER OF NOMURA SECURITIES INTERNATIONAL INC RECENTLY SUMMED UP HIS OUTLOOK FOR THE 1993 ECONOMY IN A POEM AN EXCERPT BUT JOBS NOW HAVE GONE UP AS HAVE NEW ORDERS FOR GOODS THOUGH WHAT WE ARE NOW SEEING IS HARDLY A BOOM WINNERS AND LOSERS THE WORST INTERESTRATE FORECASTS OF SIX MONTHS AGO CAME FROM ONE OF WALL STREET'S BRIGHTEST STARS EDWARD S HYMAN SELECTED BY MONEY MANAGERS POLLED EARLY LAST YEAR BY THIS NEWSPAPER AS THEIR LEADING GURU STUMBLED BADLY MR HYMAN WHO IS PRESIDENT OF ISI GROUP INC PREDICTED IN MID1992 THAT TREASURY BOND YIELDS WOULD CLIMB TO 830 BY THE END OF THE YEAR BUT THAT TURNED OUT TO BE THE BIGGEST MISS AMONG THE 42 ANALYSTS INCLUDED IN THAT SURVEY MR HYMAN ALSO TIED FOR LAST PLACE ON SHORTTERM RATES IN THE JOURNAL'S MID1991 SURVEY MR HYMAN'S PREDICTIONS ON SHORTTERM AND LONGTERM RATES HAD BEEN THE MOST ACCURATE WHERE DID HE GO WRONG I THOUGHT THE ECONOMY WAS TAKING OFF IN THE EARLY PART OF 1992 AND IT CLEARLY DIDN'T MR HYMAN SAYS I UNDERESTIMATED THE NEGATIVE FORCES OF WEAKNESS IN EUROPE AND WEAKNESS IN CALIFORNIA AND HEAVY DEBT LEVELS AND LAYOFFS PERSISTED WHERE I THOUGHT THEY HAD STOPPED SO EMPLOYMENT WAS MUCH WEAKER THAN I EXPECTED THIS YEAR HE PREDICTS THE ECONOMY WILL EXPAND AT A MODERATE PACE AND INFLATION WILL DROP TO ONLY 2 PULLING INTEREST RATES DOWN FURTHER HE ALSO PREDICTS THE DOLLAR WILL DO VERY WELL AGAINST THE GERMAN MARK MY GOAL IS TO BE RIGHT 6 OR 7 TIMES OUT OF 10 MR HYMAN CONTINUES I THINK CLIENTS EXPECT THAT IF YOU TURN OUT TO BE WRONG 6 OR 7 TIMES OUT OF 10 EVEN IF YOUR ANALYSIS AND CHARTS ARE PROVOCATIVE IT STARTS TO WEAR THIN ON CLIENTS HERE ARE OTHER BEST AND WORST FORECASTS FROM THE MID1992 SURVEY FOR A CHANGE THE GROUP'S AVERAGE INTERESTRATE FORECASTS CAME VERY CLOSE TO BEING CORRECT THE AVERAGE FORECAST OF SIX MONTHS AGO CALLED FOR DECLINES IN BOTH SHORTTERM AND LONGTERM RATES AND ALSO CAME REMARKABLY CLOSE ON THE OTHER ECONOMIC AND CURRENCY FORECASTS THIS ACCURACY MAY STARTLE SOME LONGTIME FOLLOWERS OF THIS SEMIANNUAL SURVEY WHICH BEGAN AT THE END OF 1980 BECAUSE THE INTERESTRATE CONSENSUS GENERALLY HAS BEEN WRONG BEST INTERESTRATE FORECASTS FROM A YEAR AGO IN THE JOURNAL'S SURVEY PUBLISHED JAN 2 1992 ROBERT G DEDERICK EXECUTIVE VICE PRESIDENT AT NORTHERN TRUST CO PREDICTED 30YEAR TREASURY BONDS WOULD YIELD 740 AT THE END OF 1992 SO DID LYLE GRAMLEY WHO NOW IS A CONSULTING ECONOMIST AT THE MORTGAGE BANKERS ASSOCIATION OF AMERICA ON SHORTTERM RATES THE WINNER IS JAMES F SMITH WHO PREDICTED ONE YEAR AGO THAT THE YIELD ON THREEMONTH TBILLS THEN 393 WOULD DROP TO 325 BY THE END OF 1992 GARY SHILLING ALSO CAME VERY CLOSE WITH HIS PREDICTION OF 3 THESE TWO WERE AMONG THE FEW AT THE TIME WHO PREDICTED THAT SHORTTERM RATES WOULD DROP IN 1992 AS THEY DID THE AVERAGE FORECAST AT THAT TIME CALLED FOR THE TBILL YIELD TO INCREASE TO 425 BY THE END OF 1992 WORST FORECAST OF THREEMONTH TBILLS TIED WITH MR HYMAN WERE ARNOLD MOSKOWITZ AND ALAN REYNOLDS EACH PREDICTED 430 MORE THAN A PERCENTAGE POINT TOO HIGH BEST 30YEAR TREASURY BONDYIELD FORECAST CAROL LEISENRING OF CORESTATES FINANCIAL CORP BEST FORECAST OF HOW MUCH THE AMERICAN DOLLAR WOULD BE WORTH IN JAPANESE YEN AN 11WAY TIE BETWEEN WILLIAM BROWN ROBERT GIORDANO OF GOLDMAN SACHS & CO RICHARD HOEY DAVID JONES CAROL LEISENRING MARIA FIORINI RAMIREZ DONALD RATAJCZAK DONALD STRASZHEIM OF MERRILL LYNCH JOSEPH WAHED OF WELLS FARGO BANK RAYMOND WORSECK OF AG EDWARDS AND EDWARD YARDENI OF CJ LAWRENCE ALL CORRECTLY PREDICTED 125 YEN THE JOURNAL QUESTIONNAIRE ALSO IS DISTRIBUTED TO A FEW NONECONOMISTS SOME OF WHOM OCCASIONALLY DO MUCH BETTER THAN MOST OF THE PROFESSIONALS FOR EXAMPLE RAUL GONZALEZ A NEW YORK CITY DOORMAN WHO ACHIEVED A MEASURE OF FAME SEVERAL YEARS AGO WITH A HIGHLY ACCURATE BONDYIELD PREDICTION HIT THE BULLSEYE WITH HIS FORECAST ONE YEAR AGO THAT THE DOLLAR WOULD BE WORTH 125 YEN AT THE END OF 1992 FORTUNATELY FOR THE PROFESSIONAL ECONOMISTS HOWEVER MR GONZALEZ'S OTHER 1992 FORECASTS WERE WIDE OF THE MARK WORST DOLLAR FORECAST JAMES SMITH OF THE UNIVERSITY OF NORTH CAROLINA ROBERT BARBERA OF LEHMAN BROTHERS CAME IN SECOND FROM THE BOTTOM OTHER CATEGORIES WINNERS AND LOSERS FOR PREDICTIONS ABOUT ECONOMIC GROWTH AND INFLATION HAVEN'T BEEN DECIDED YET BECAUSE THE GOVERNMENT HASN'T YET RELEASED FINAL 1992 DATA ACCORDING TO THE AVERAGE ESTIMATE OF THE ANALYSTS SURVEYED THE ECONOMY GREW AT A 31 ANNUAL CLIP IN 1992'S SECOND HALF AND CONSUMER PRICES ROSE AT A 29 PACE IF THOSE ESTIMATES ARE CORRECT THE WINNER ON THE ECONOMY WOULD BE MR STRASZHEIM AND THE BEST INFLATION FORECASTS WOULD BELONG TO MESSRS REYNOLDS RESLER AND JONES BUT RELYING ON GOVERNMENT STATISTICS TO PICK WINNERS CAN BE TRICKY WHEN YOU FORECAST NUMBERS THE GOVERNMENT OFTEN REVISES AWAY BOTH YOUR BRILLIANT FORECASTS AND YOUR DUMB MISTAKES SAYS MR HOEY OF DREYFUS AS A RESULT MR HOEY WHO ALSO MANAGES A DREYFUS MUTUAL FUND SAYS HE FINDS RUNNING MONEY IS MORE FUN THAN FORECASTING NUMBERS AT LEAST HE ADDS THE INVESTMENT PERFORMANCE OF YOUR PORTFOLIO IS ONE THING THEY DON'T REVISE 9301040131 930104 YEAREND REVIEW OF MARKETS ART WORLD IS STARTING TO PAINT A BRIGHTER PICTURE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ART MARKET FINALLY APPEARS TO BE EMERGING FROM A TWOYEAR SLUMP PRICES OF MAJOR WORKS ARE STILL DOWN 50 OR MORE FROM THE HEIGHT OF THE BOOM IN 198990 BUT THERE WAS A NOTICEABLE PSYCHOLOGICAL CHANGE AFTER THE PRESIDENTIAL ELECTION SAYS SANDY L SMITH MANAGER OF SEVERAL ART FAIRS ON THE EAST COAST THERE WAS HE SAYS A FEELING THAT THINGS WERE GOING TO GET BETTER IN 1993 COLLECTORS LOOKING FOR CLUES TO THE SPEED AND EXTENT OF THE ART MARKET'S RECOVERY SHOULD KEEP AN EYE ON THE FOLLOWING SOTHEBY'S HOLDINGS INC THE WORLD'S LARGEST ARTAUCTION HOUSE HAS RAISED THE COMMISSION IT CHARGES BUYERS FOR THE FIRST TIME IN 14 YEARS EFFECTIVE AT THE START OF THE YEAR SOTHEBY'S INCREASED ITS COMMISSION TO 15 FROM 10 ON ITEMS UNDER 50000 AND ON THE FIRST 50000 OF PRICIER ITEMS CHRISTIE'S INTERNATIONAL PLC THE BIG LONDON AUCTION HOUSE PLANS TO FOLLOW SUIT MARCH 1 SOME ART DEALERS HOWEVER FEAR THE HIGHER LEVY WILL STIFLE BUSINESS JUST AS THE MARKET IS PERKING UP THE MUSEUM OF MODERN ART'S HUGE JOAN MIRO RETROSPECTIVE WHICH OPENS IN OCTOBER IS EXPECTED TO PROMPT A REEVALUATION OF THE SPANISH MASTER AND THE MARKET FOR HIS PROLIFIC OUTPUT BUT BEYOND THAT IF THE NEW YORK MUSEUM SCORES ANOTHER BLOCKBUSTER SIMILAR TO ITS SOLDOUT HENRI MATISSE EXHIBITION MUSEUM OFFICIALS SAY IT COULD BECOME EASIER FOR MUSEUM SHOWS TO GAIN CORPORATE SPONSORSHIP IN THE SEVERELY DEPRESSED CONTEMPORARY ART MARKET DEALERS AND ARTISTS HAVE BEEN PLAYING MUSICAL CHAIRS AMONG THEM ROBERT MNUCHIN FORMERLY OF GOLDMAN SACHS & CO HAS TEAMED WITH ART DEALER JAMES CORCORAN TO LAUNCH HIS OWN GALLERY JENNIFER VORBACH WHO HAD HEADED CONTEMPORARY ART AT CITIBANK ART ADVISORY LEFT THERE FOR THE NEW GALLERY IN THE SUPERHOT COLLECTIBLES MARKETS SOME BIGMONEY AUCTIONS WILL TEST DEALERS' CLAIMS THAT THE BOOM IN BASEBALL MEMORABILIA IS UNSTOPPABLE AND THAT A SIMILAR BOOM IN COMIC BOOK ART IS RIGHT AROUND THE CORNER NEXT MONTH GUERNSEY'S AUCTION HOUSE IN A THREEDAY SALE OF COMIC AND ANIMATION ART WILL PUT ON THE BLOCK THE ARTWORK FROM THE SOLDOUT DEATH OF SUPERMAN COMIC THE TONY WINTER ANTIQUES SHOW IN AN EFFORT TO BOOST BUSINESS AND BUYER CONFIDENCE WILL HAVE ANTIQUES DEALERS VET OR AUTHENTICATE ITS WARES THIS YEAR FOR THE FIRST TIME IN ITS HISTORY THE SHOW A BAROMETER OF DEMAND FOR PRICIER US FURNITURE AND SILVER AMONG OTHER OBJECTS WILL BE HELD THIS MONTH IN NEW YORK LOOKING BACK 1992 WAS A TROUBLED YEAR FOR THE ART BUSINESS PRICE DEFLATION KEPT MANY COLLECTORS FROM PUTTING EXCITING WORKS ON THE MARKET THEREBY PERPETUATING THE MARKET'S MALAISE MORE GALLERIES CLOSED SALES WERE SLOWER THAN EXPECTED AT BOTH OF THE BIG AUCTION HOUSES AND CHRISTIE'S ANNOUNCED LAYOFFS OF 60 EMPLOYEES WORLDWIDE BUT BUSINESS IMPROVED SLIGHTLY IN THE FALL SOTHEBY'S AND CHRISTIE'S HELPED BY ACTIVE BIDDING FROM ART DEALERS RAISED MORE AT THEIR FLAGSHIP NEW YORK SALES OF IMPRESSIONIST MODERN AND CONTEMPORARY ART THAN THEY HAD IN SIMILAR SALES HELD OVER THE PAST TWO YEARS THE 10 MILLION BARRIER FOR AN IMPRESSIONIST OR MODERN PAINTING NOT BROKEN SINCE 1990 WAS CRACKED THREE TIMES IN NOVEMBER BUT OLD MASTERS HAVE BEEN FETCHING EVEN MORE THE HIGHEST PRICE PAID FOR ANY PAINTING AT AUCTION WAS 177 MILLION FOR CANALETTO'S THE OLD HORSE GUARDS FROM ST JAMES PARK A HUGE DETAILED LANDSCAPE EVEN AMID THE RECESSION PRICES FOR SOME DECORATIVE ARTS AND COLLECTIBLES SMASHED AUCTION RECORDS AN ANTIQUE COLT PATERSON REVOLVER FETCHED 750000 AT SAN FRANCISCO AUCTION HOUSE BUTTERFIELD & BUTTERFIELD SOTHEBY'S SOLD ABRAHAM LINCOLN'S DRAFT OF HIS 1858 A HOUSE DIVIDED SPEECH FOR 15 MILLION A RECORD FOR ANY US AUTOGRAPH OR MANUSCRIPT A MING WUCHI WINE JAR FROM THE 16TH CENTURY FETCHED 29 MILLION SETTING A RECORD FOR PORCELAIN A RECORD FOR A RUSSIAN WORK OF ART WAS SET BY SOTHEBY'S WITH ITS 32 MILLION SALE OF A JEWELENCRUSTED FABERGE EGG IN THE BATTLE FOR TOPQUALITY ESTATE PROPERTY TO SELL SOTHEBY'S WON THE JEWELRY SILVER AND FURNITURE OF PRINCE JOHANNES THURN UND TAXIS OF BAVARIA THE FIRST OF A SERIES OF SALES FETCHED 137 MILLION IN NOVEMBER CHRISTIE'S HELD SUCCESSFUL SALES OF THE DRAWINGS AND PAINTINGS FROM THE WILLIAM MCCARTYCOOPER COLLECTION HEATING UP THE MARKET FOR WORKS ON PAPER AND THE TOPDRAWER SAMUEL MESSER COLLECTION OF ENGLISH FURNITURE PRIVATETREATY SALES BECAME INCREASINGLY IMPORTANT TO THE AUCTION HOUSES IN 1992 THOSE ARE SALES IN WHICH THE AUCTION HOUSE ACTS ON BEHALF OF PUBLICITYSHY COLLECTORS WHO WANT TO PLACE WORKS PRIVATELY THE PAINTINGS NEVER HIT THE AUCTION BLOCK CHRISTIE'S SOLD ONE OF THE MOST EXPENSIVE PAINTINGS OF THE YEAR A HANS HOLBEIN PORTRAIT FOR 173 MILLION IN A PRIVATETREATY SALE TO LONDON'S NATIONAL GALLERY SOTHEBY'S IS REPORTEDLY ARRANGING SIMILAR SALES ON BEHALF OF PUBLISHING EXECUTIVE SI NEWHOUSE JR AMONG OTHER COLLECTORS WITH THEIR WAR CHESTS FATTENED BY YEARS ON THE SIDELINES MUSEUMS EMERGED AGAIN AS REAL PLAYERS IN THE ART MARKET IN 1992 THE KIMBELL ART MUSEUM OF FORT WORTH TEXAS SPENT 11 MILLION ON A MATISSE AND THE J PAUL GETTY MUSEUM AND THE LOUVRE EACH MADE MAJOR PAINTINGS ACQUISITIONS THE GUGGENHEIM MUSEUM IN NEW YORK REOPENED AND IN A JOINT VENTURE WITH THE ROBERT MAPPLETHORPE FOUNDATION ANNOUNCED PLANS TO ESTABLISH A MAJOR COLLECTION OF MODERN AND CONTEMPORARY PHOTOGRAPHY THREE MUSEUMS HAVE BIG EXPANSIONS UNDER WAY THE MUSEUM OF CONTEMPORARY ART IN CHICAGO THE NORMAN ROCKWELL MUSEUM IN STOCKBRIDGE MASS AND THE JEWISH MUSEUM IN NEW YORK A CATHOLIC MUSEUM OF AMERICA IN NEW YORK IS IN THE PLANNING STAGES ONE OF THE SAVVIER ARTMARKET PLAYS OF 1992 WAS MADE BY SOTHEBY'S CHAIRMAN REAL ESTATE DEVELOPER A ALFRED TAUBMAN IN JUNE MR TAUBMAN ALONG WITH COMPANY DIRECTOR MAX FISHER SOLD 10 MILLION SHARES OF SOTHEBY'S STOCK FOR 1250 EACH IN A SECONDARY OFFERING THE STOCK HAS SLIPPED A BIT SINCE CLOSING THE YEAR AT 1225 IN NEW YORK STOCK EXCHANGE TRADING 9301040130 930104 YEAREND REVIEW OF COMMODITIES STRONGER ECONOMY APPEARS READY TO BUOY COMMODITIES PRICES IN '93 A WALL STREET JOURNAL NEWS ROUNDUP IT'S TOO EARLY TO BREAK OUT THE CHAMPAGNE A STRENGTHENING ECONOMY WILL PROBABLY BUOY COMMODITY PRICES THIS YEAR BUT MOST OF THE GAINS WILL COME IN THE SECOND HALF AS TWO ECONOMIC GIANTS JAPAN AND GERMANY SHAKE OFF THE RECESSIONARY BLUES YOU ARE GOING TO SEE A BULL MOVE IN COMMODITIES IN 1993 BUT IT'S NOT GOING TO BE LIKE THE BULL MARKETS YOU'VE SEEN IN PREVIOUS RECOVERIES SAYS PETER CANELO CHIEF MARKET ANALYST AT COUNTY NATWEST COMMODITY ANALYSTS SAY THAT WHILE THEY EXPECT INDUSTRIAL COMMODITIES SUCH AS COPPER AND PLATINUM TO RALLY IN THE SECOND HALF THEY SEE LITTLE HOPE FOR SOCALLED SOFT COMMODITIES SUCH AS SUGAR AND COCOA WHICH STILL FACE AN UNFAVORABLE SUPPLYANDDEMAND PICTURE FOR MANY SPECULATORS IN THE ROUGHANDTUMBLE FUTURES PITS 1992 WAS A DISAPPOINTING YEAR HOPES FOR A PICKUP IN ECONOMIC ACTIVITY BOOSTED COMMODITY PRICES EARLY IN THE YEAR BUT SLACKENING BUSINESS ACTIVITY QUICKLY DAMPED SPECULATORS' EUPHORIA HARDEST HIT WERE THE INDUSTRIAL COMMODITIES COPPER WHICH HAD SOARED ABOVE 117 A POUND IN JULY FINISHED THE YEAR AT 1036 A POUND FOR THE MARCH CONTRACT AND SILVER TUMBLED TO 3690 AN OUNCE FOR THE MARCH CONTRACT FROM 3883 AN OUNCE AT THE START OF THE YEAR THE DECLINE WAS UNUSUALLY BROADBASED AFTER ATTEMPTING A FEEBLE RALLY EARLY IN THE YEAR THE COMMODITY RESEARCH BUREAU'S WIDELY WATCHED INDEX OF 21 FUTURES CONTRACTS FELL 413 TO 19960 IN AUGUST HOVERING NEAR ITS 1986 LOWS BILL CLINTON'S VICTORY IN THE PRESIDENTIAL RACE PUSHED THE CRB INDEX UP IN THE FINAL MONTHS OF 1992 BUT THE INDEX STILL ENDED THE YEAR 26 LOWER AT 20276 JOHN MURPHY PRESIDENT OF JJM TECHNICAL ADVISORS IN ORADELL NJ SAYS HE IS ENCOURAGED BECAUSE THE CRB APPEARS TO BE IN THE EARLY STAGES OF THE BOTTOMING PROCESS BUT MR MURPHY CAUTIONS THAT IT WILL BE A LONG DRAWNOUT EVENT WE'VE ONLY BEEN MOVING SIDEWAYS FOR TWO OR THREE MONTHS AND THAT'S NOT ENOUGH TO TURN AROUND A FOURYEAR BEAR MARKET HE SAYS ENERGY PRICES STABLE FOR THE PAST TWO YEARS EXCEPT FOR NATURAL GAS ARE EXPECTED TO BE FLAT TO 5 HIGHER IN 1993 BUT MORE VOLATILE THAN IN 1992 CHIEF FACTORS ARE WEATHER THE WORLD'S ECONOMIES AND THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES RUSSIA ANOTHER OIL EXPORTER IS A WILD CARD IN THE OUTLOOK MANY 1993 FORECASTS FOR FUELS ASSUME A NORMAL WINTER THAT MEANS COLDER TEMPERATURES THAN IN MOST WINTERS OF RECENT YEARS SOME RECOVERY IN THE WORLD'S ECONOMIES WHICH COULD LEAD TO HIGHER FUEL USE ALSO IS GENERALLY EXPECTED AND MOST ANTICIPATE SOME OUTPUT DISCIPLINE BY OPEC WITH LITTLE IRAQI OIL FLOWING INTO WORLD MARKETS INDUSTRY OFFICIALS LOOK FOR THE UNITED NATIONS TO MAINTAIN ITS ECONOMIC SANCTIONS AGAINST IRAQ INCLUDING A BAN ON IRAQI OIL EXPORTS FOR AT LEAST SEVERAL MORE MONTHS BUT THERE IS A QUESTION OF HOW LONG THE US MAY HOLD A HARDLINE POSITION ON IRAQ WITH PRESIDENT BUSH OUT OF THE WHITE HOUSE DEVELOPMENTS IN RUSSIA COULD AFFECT OIL MARKETS TOO PETROLEUM INTELLIGENCE WEEKLY REPORTS RUSSIA'S CRUDE SALES WILL DROP POSSIBLY ENOUGH TO SEND MARKETS INTO AN UPTREND BY REMOVING SOME OF THE BURDEN OF OPEC'S GROWING SPARE CAPACITY WHATEVER THE STATUS OF IRAQ OR RUSSIA OPEC LIKELY WILL BE ABLE TO PRODUCE MORE THAT SUGGESTS PRICING VOLATILITY SAYS PAUL MLOTOK A MORGAN STANLEY & CO OIL ECONOMIST HE ADDS 1992 WAS AN AMAZINGLY STABLE YEAR FOR PRICES BECAUSE OF OPEC'S MINIMUM SPARE CAPACITY HE EXPECTS 1993 OIL PRICES TO REMAIN FLAT IN 1991 THE YEAR OF THE PERSIAN GULF WAR THE PRICE OF CRUDE OIL BASED ON WEST TEXAS INTERMEDIATE OR WTI WAS SLIGHTLY LESS THAN 22 A BARREL IN 1992 SLUGGISH DEMAND AND RISING OPEC PRODUCTION HELPED TO HOLD PRICES AT AROUND 2060 A BARREL FOR 1993 LAWRENCE GOLDSTEIN PRESIDENT OF THE PETROLEUM INDUSTRY RESEARCH FOUNDATION SUGGESTS THE US BENCHMARK CRUDE WILL BE FRACTIONALLY LOWER OR AROUND 2050 A BARREL ON AVERAGE SOME OTHERS CALL FOR MODESTLY RISING PRICES BARRING AN OUTPOURING OF IRAQI OIL SOME SEE CRUDE AVERAGING 50 CENTS TO 1 A BARREL HIGHER ROBERT BOSLEGO A WINCHESTER MASS ENERGY CONSULTANT IS IN THIS GROUP HE EXPECTS A 1993 RANGE OF 18 TO 24 A BARREL FOR WTI WITH 21 THE MIDPOINT PRICES WILL PROBABLY BE A LITTLE STRONGER HE SAYS BECAUSE OF A WORLDWIDE INCREASE IN DEMAND NATURAL GAS PRICES ALSO ARE EXPECTED TO AVERAGE SLIGHTLY MORE IN 1993 ON A 3 GAIN IN US DEMAND AFTER A LONG SLIDE GAS PRICES HIT BOTTOM IN EARLY 1992 AFTER FALLING TO LESS THAN 1 A THOUSAND CUBIC FEET THEN INCREASING USE AND DISRUPTIONS TO PRODUCTION IN THE GULF OF MEXICO FROM THE SUMMER'S HURRICANE LED TO A NEAR TRIPLING OF PRICES BEFORE THEY FELL BACK TO AROUND 2 A THOUSAND CUBIC FEET IN ALL OF 1992 GAS AVERAGED ABOUT 165 A THOUSAND CUBIC FEET FOR 1993 GENERAL PROJECTIONS ARE FOR AN AVERAGE OF 180 A THOUSAND CUBIC FEET WE THINK THERE WILL BE SOME TIGHTENING OF SUPPLY ALONG WITH AN INCREASE IN DEMAND IF THERE IS ANY SORT OF ECONOMIC RECOVERY SAYS MICHAEL MAYER A WERTHEIM SCHRODER & CO ANALYST THE CROP PRICE OUTLOOK IS MOSTLY DREARY FOR PRODUCERS INVESTORS AND TRADERS NEARRECORD GRAIN PRODUCTION IN THE NORTHERN HEMISPHERE LAST YEAR HAS LEFT MANY OF THE US'S CUSTOMERS AND COMPETITORS WITH LARGE SUPPLIES THAT SIGNALS A PRICEDEPRESSING COMBINATION OF KEEN COMPETITION AND STALE EXPORT DEMAND SAYS DANIEL W BASSE DIRECTOR OF MARKET RESEARCH AT AGRESOURCE CO CHICAGO US PRICES WOULD GET A LIFT FROM A PACT DESIGNED TO BROADEN THE SCOPE OF THE GENEVABASED GENERAL AGREEMENT ON TARIFFS AND TRADE WHICH POLICES TRADE RULES THE US AND EUROPEAN COMMUNITY NARROWLY AVERTED A TRADE WAR LAST YEAR OVER THEIR DIFFERENCES ON HOW TO MAKE AGRICULTURE PART OF THE GATT RULES SEVERAL HURDLES REMAIN US PRICES WILL ALSO REACT THIS YEAR TO THE UNFOLDING OF FARM POLICY REFORM IN THE EUROPEAN COMMUNITY THE EC IS TRYING TO REDUCE ITS BURDENSOME STOCKPILES BY LOWERING CROP SUBSIDIES AND REQUIRING LARGE FARMERS TO IDLE SOME LAND THE REFORMS PROBABLY WILL SLOWLY LOWER EC GRAIN EXPORTS AND INCREASE ITS OILSEED IMPORTS BUT IT ISN'T CLEAR HOW EUROPEAN FARMERS WILL SHIFT THEIR PRODUCTION EVENTS IN THE COMMONWEALTH OF INDEPENDENT STATES WILL ALSO CONTINUE TO WEIGH HEAVILY ON THE US GRAIN MARKETS THE CIS IS A MAJOR BUYER OF US CROPS BUT CREDIT WOES ARE FORCING IT TO SCALE DOWN ITS FOOD IMPORTS RUSSIA WHICH IS RESPONSIBLE FOR MUCH OF THE CIS'S GRAIN DEBT BEGAN FALLING BEHIND ON ITS US LOAN PAYMENTS IN NOVEMBER AN IMPROVED GRAIN HARVEST IN 1992 SHOULD HELP THE CIS REDUCE ITS DEPENDENCE ON FOREIGN GRAIN IN 1993 BUT CIS WHEAT PRODUCTION IN 1993 MIGHT DROP IN PART BECAUSE POOR WEATHER PREVENTED SOME WHEAT FARMERS FROM PLANTING AS MUCH ACREAGE AS EXPECTED THE CONVENTIONAL WISDOM IS THAT US CORN FARMERS WILL PROBABLY SEE PRICES HOVER AROUND THE 2ABUSHEL LEVEL FOR MUCH OF THE YEAR IN THE WAKE OF THEIR RECORD 1992 HARVEST OF 93 BILLION BUSHELS CORN FOR MARCH DELIVERY ENDED THE YEAR AT 2165 A BUSHEL WEAK EXPORT DEMAND IS EXPECTED TO BE PARTLY OFFSET BY A RISE IN DOMESTIC CONSUMPTION OF CORN BY PRODUCERS OF ETHANOL EARLY FORECASTS FOR A LARGE US WHEAT HARVEST AGAIN IN 1993 SIGNAL THAT WHEAT PRICES MIGHT SINK TO A SEASONAL LOW OF ROUGHLY 250 A BUSHEL BY THE EARLY SUMMER WHEAT FOR MARCH DELIVERY ENDED 1992 AT 35375 A BUSHEL GOOD PLANTING WEATHER IN THE SOUTHERN PLAINS DURING THE FALL LED TO SOME TENTATIVE PROJECTIONS FOR WHEAT PRODUCTION TO HIT 27 BILLION BUSHELS SOYBEAN PRICES ARE A TOUGH CALL BECAUSE MANY US FARMERS ARE MONTHS AWAY FROM MAKING THEIR PLANTING PLANS ONE BIG NEGATIVE ON THE HORIZON IS THAT SOUTH AMERICA COULD HARVEST A LARGE SOYBEAN CROP EARLY THIS YEAR SOUTH AMERICA IS A MAJOR COMPETITOR IN THE WORLD SOYBEAN MARKET IF THERE IS A GROUP OF INVESTORS WHO PROBABLY WON'T BE INVITED TO THE PARTY THIS YEAR IT'S THE GOLD AND SILVER BUGS EVEN THOUGH MANY ECONOMISTS ARE CALLING FOR A PICKUP IN GROWTH FEW ARE EXPECTING INFLATION TO HEAT UP THIS YEAR FOR GOLD AND SILVER INVESTORS THAT WILL BE A DISAPPOINTMENT PRECIOUS METALS TRADITIONALLY APPRECIATE IN TIMES OF RUNAWAY INFLATION AND WITHOUT INFLATION ANALYSTS SAY GOLD AND SILVER COULD FLOUNDER EDWIN ARNOLD A PRECIOUS METALS ANALYST AT MERRILL LYNCH EXPECTS GOLD TO MOVE SIDEWAYS TO LOWER THIS YEAR ACHIEVING A PRICE OF 350 AN OUNCE WILL BE THE MOUNT EVEREST OF GOLD HE SAYS I THINK EVERYONE AND THEIR UNCLE WOULD SELL IT THERE THAT WAS INDEED THE CASE IN 1992 EACH TIME THE PRECIOUS METAL MANAGED TO PEEK ABOVE 350 AN OUNCE GOLD PRODUCERS REELING FROM HEAVY LOSSES THE PAST FEW YEARS AND CENTRAL BANKS STEPPED INTO THE MARKET AND DUMPED SUPPLIES ONE NOTABLE EXCEPTION WAS NEWMONT MINING CORP A PRODUCER BASED IN DENVER SENSING THAT GOLD PRICES HAD HIT A BOTTOM NEWMONT BOUGHT 375000 OUNCES OF GOLD IN THE FORWARD MARKET IN MAY FOR 126 MILLION IT PLANNED TO USE THE BULLION TO PAY OFF A GOLD LOAN CASH NOW FOR GOLD LATER THAT IT RECEIVED IN 1988 NEWMONT CHAIRMAN GORDON PARKER SAID AT THE TIME I PUT MY NECK OUT BY TAKING THE ACTION WE HAVE TAKEN BUT FEW OTHERS WERE WILLING TO DO THE SAME GOLD ENDED 1992 WITH A 59 DROP TO 33310 AN OUNCE NOT EVEN THE EUROPEAN CURRENCY CRISIS IN SEPTEMBER WAS ENOUGH TO PUMP LIFE INTO THE MARKET AND SILVER WAS MUCH THE SAME SILVER PRICES ADVANCED EARLY IN THE YEAR BUT HEAVY SALES BY THE NATIONAL COMMERCIAL BANK OF SAUDI ARABIA JOLTED THE MARKET SENDING SILVER PRICES TUMBLING 155 CENTS IN ONE DAY TO 3873 AN OUNCE SILVER ENDED THE YEAR AT 3690 AN OUNCE DOWN 49 THE ONLY PRECIOUS METALS THAT ARE LIKELY TO FARE WELL THIS YEAR ARE PLATINUM AND PALLADIUM INDUSTRIAL METALS THAT MIGHT BE HELPED BY SIGNS THAT THE US ECONOMY IS IMPROVING THE STAGE FOR GAINS IN BOTH MARKETS WAS SET IN 1992 WHEN PLATINUM ROSE TO 3526 AN OUNCE UP 41 WHILE PALLADIUM SOARED TO 10445 AN OUNCE ALMOST 30 HIGHER AFTER A ROLLERCOASTER YEAR ANALYSTS EXPECT THE SUGAR MARKET WILL BE QUIETER AND PROBABLY MORE DEPRESSED IN 1993 MANY SUGAR PRODUCERS ARE EXPECTED TO INCREASE OUTPUT THIS YEAR AND THAT WON'T BODE WELL FOR PRICES THAT ARE ALREADY TRADING AT DEPRESSED LEVELS I AM A SUGAR BEAR SAYS ARTHUR STEVENSON AN ANALYST AT PRUDENTIAL SECURITIES THE GLOBAL SUPPLYDEMAND BALANCE IS RATHER WELL SUPPLIED AT THE MOMENT WHAT'S MORE THERE'S LITTLE PROSPECT FOR HIGHER PRICES ON THE CONSUMPTION FRONT THE COMMONWEALTH OF INDEPENDENT STATES ONE OF THE BIGGEST SUGAR CONSUMERS HAS ALREADY DEFAULTED ON GRAIN LOANS GUARANTEED BY THE AGRICULTURE DEPARTMENT THE CIS'S WELLILLUSTRATED CURRENCY PROBLEMS REDUCE THEIR CAPACITY TO GO OUT THERE AND BUY A HELL OF A LOT OF SUGAR SAYS MR STEVENSON AFTER RALLYING ABOVE 11 CENTS A POUND IN JUNE SUGAR PRICES COLLAPSED FINISHING THE YEAR AT 841 CENTS A POUND DOWN 66 THE KEY TO SWEETER COCOA PRICES THIS YEAR WILL BE WHETHER CHOCOLATE CONSUMPTION RISES SUBSTANTIALLY EVEN THOUGH DEMAND FOR COCOA EXCEEDED PRODUCTION FOR THE SECOND STRAIGHT YEAR COCOA PRICES REMAINED DEPRESSED IN 1992 MAINLY BECAUSE OF A SHARP DROP IN COCOA CONSUMPTION IN EUROPE AND THE COMMONWEALTH OF INDEPENDENT STATES JUDITH GANES A SENIOR ANALYST AT MERRILL LYNCH SAYS THE RECOVERY IN THE COCOA MARKET WILL HINGE ON A PICKUP IN DEMAND PARTICULARLY IN EUROPE DESPITE THE COCOA DEFICIT LAST YEAR ONE OF THE HURDLES THE MARKET FACED WAS DIGESTING THE LARGE STOCKS OF COCOA THAT PRODUCING NATIONS STILL HOLD THERE'S SUCH AN OVERWHELMING STOCKPILE OF COCOA THAT IT WILL PRECLUDE THE MARKET FROM RUNNING AWAY SAYS ONE ANALYST WHO EXPECTS COCOA TO TRADE IN A RANGE OF 900 TO 1100 A TON THIS YEAR COCOA FOR MARCH DELIVERY ENDED THE YEAR AT 936 A TON BUT MS GANES SAYS ONE OF THE ENCOURAGING FACTORS FOR THE MARKET THIS YEAR IS THAT THE IVORY COAST HAS ADOPTED A MORE STRINGENT SALES POLICY THE IVORY COAST IS THE WORLD'S LARGEST GROWER OF COCOA AND LAST YEAR WHENEVER PRICES JUMPED THE WEST AFRICAN NATION DUMPED COCOA ON THE MARKET COPPER PRICES ARE LIKELY TO RISE THIS YEAR BUT SPECULATORS WILL HAVE TO WAIT UNTIL THE SECOND HALF TO SAVOR THE BIG GAINS EVEN THOUGH THE US ECONOMY IS EMERGING FROM ITS DOLDRUMS TWO OF THE WORLD'S LARGEST ECONOMIC POWERS JAPAN AND GERMANY ARE STILL MIRED IN SLUMPS AND BECAUSE COPPER IS TRADED GLOBALLY IT WILL TAKE A WORLDWIDE RECOVERY BEFORE PRICES START EXPLODING FRED DEMLER A METALS ANALYST AT PAINEWEBBER EXPECTS COPPER PRICES TO HOVER AROUND 95 CENTS A POUND IN THE FIRST HALF BUT BY YEAR END HE SAYS HE THINKS PRICES WILL APPROACH 110 ONE ENCOURAGING SIGN FOR THE MARKET IS THAT CHINA WHICH SLOWED ITS PURCHASES OF COPPER IN THE LATE SUMMER AND EARLY FALL APPEARED TO BE RETURNING TO THE MARKET IN THE FINAL MONTHS OF 1992 TRADERS SAY ACTIVE CHINESE BUYING PUSHED COPPER PRICES TO 1036 A POUND FOR THE MARCH CONTRACT UP FROM THEIR LOWS OF 9560 CENTS IN OCTOBER ORANGE JUICE PRICES WILL PROBABLY TREND LOWER IN 1993 BARRING A CROPDAMAGING FREEZE THIS WINTER THE PROSPECT OF THE BIGGEST FLORIDA ORANGE CROP IN MORE THAN A DECADE AND AMPLE BRAZILIAN SUPPLIES SENT ORANGE JUICE FUTURES TUMBLING BELOW 1 A POUND IN OCTOBER THOUGH PRICES LATER RECOVERED THE GAINS REFLECTED HEAVY SPECULATIVE BUYING IN ANTICIPATION OF A FREEZE STEPHEN PLATT AN ANALYST AT DEAN WITTER REYNOLDS IN CHICAGO SAYS AMPLE JUICE SUPPLIES COMBINED WITH THE PROSPECT OF AN EXPANSION IN STOCKS COULD RESULT IN A NEW TRADING RANGE THIS YEAR IN THE ABSENCE OF ANY MAJOR FREEZE ORANGE JUICE FUTURES COULD START TRADING BETWEEN 70 CENTS AND 140 A POUND DOWN FROM 90 CENTS TO 2 A POUND CURRENTLY HE SAYS THIS YEAR ISN'T LIKELY TO BRING MUCH RELIEF TO THE DEPRESSED COTTON MARKET EVEN THOUGH A PICKUP IN THE WORLD ECONOMY COULD BOOST PRICES IN THE SECOND HALF ANALYSTS EXPECT COTTON TO TRADE IN A RANGE OF 50 CENTS TO 70 CENTS A POUNDMUCH THE SAME AS LAST YEAR THANKS TO MOTHER NATURE COTTON PRICES MANAGED A RALLY LAST SUMMER AS WET WEATHER IN TEXAS AND OTHER SOUTHERN GROWING REGIONS PUSHED PRICES ABOVE 60 CENTS A POUND BUT THE GAINS WERE SHORTLIVED COTTON FINISHED THE YEAR AT 5886 CENTS A POUND OFF NEARLY 05 SHARON JOHNSON AN ANALYST AT FRANK SCHNEIDER & CO IN ATLANTA SAYS THAT THOUGH SHE EXPECTS A SLIGHT DROP IN WORLD COTTON PRODUCTION THIS YEAR SHE BELIEVES US PRODUCTION WILL BE HIGHER KEEPING A LID ON DOMESTIC PRICES EXPANDING BEEF PRODUCTION IS LIKELY TO WEAKEN CATTLE PRICES BY ABOUT TWO CENTS THIS YEAR FROM AN AVERAGE PRICE OF 76 CENTS A POUND IN 1992 PRODUCERS PUT SIGNIFICANTLY LARGER NUMBERS OF CATTLE ON FEED IN THE FALL OF 1992 THAN THEY DID A YEAR EARLIER POINTING TO THE POSSIBILITY OF FAR LARGER BEEF SUPPLIES IN EARLY 1993 BUT SEVERE WINTER WEATHER PATTERNS EMERGING OVER BEEFPRODUCING REGIONS OF TEXAS OKLAHOMA AND SOUTHERN KANSAS ARE STUNTING THE WEIGHT OF MOST CATTLE WHICH MAY MEAN A SLIGHTLY SMALLER PRODUCTION INCREASE THAN HAD BEEN EXPECTED ANALYSTS SAY CATTLE PRICES WILL FLUCTUATE FROM 70 TO 76 CENTS A POUND THROUGHOUT THIS YEAR WITH THE HIGH END OF THE RANGE REACHED EARLY IN THE YEAR AND THE LOW COMING BY JUNE THE PRICE IS EXPECTED TO AVERAGE ABOUT 76 CENTS A POUND IN THE FIRST QUARTER OF 1993 THE SAME AS IT WAS IN THE FIRST QUARTER OF 1992 HOG FARMERS MEANWHILE ARE LIKELY TO CONTINUE THEIR RECORDSETTING PACE OF INCREASING PORK PRODUCTION PORK PACKERS HAVE ENLARGED THE SLAUGHTER CAPACITIES OF THEIR PLANTS THESE INCREASINGLY MODERN PLANTS WILL ENSURE THAT DEMAND FOR HOGS REMAINS GOOD AS PACKERS SEEK TO MAINTAIN MARKET SHARE SAYS CHARLES LEVITT LIVESTOCK ANALYST FOR SHEARSON LEHMAN BROTHERS IN CHICAGO FARMERS PRODUCED A RECORD 171 BILLION POUNDS OF HOGS IN 1992 IN 1993 ANALYSTS EXPECT RECORD OUTPUT OF 175 BILLION TO 18 BILLION POUNDS THE AVERAGE PRICE FOR HOGS IN 1993 IS EXPECTED TO DECLINE ABOUT TWO CENTS FROM THE 1992 AVERAGE OF 43 CENTS A POUND THE RANGE OF PRICES THROUGHOUT THE YEAR IS EXPECTED TO BE 40 TO 46 CENTS A POUND WITH PRICES STARTING OFF LOW AND POSSIBLY DIPPING BRIEFLY BELOW 40 CENTS IN FEBRUARY OR MARCH THEN ADVANCING TO THE MID40S BY JUNE MR LEVITT SAYS THE RALLY THAT HAS BEEN PERCOLATING THROUGH THE COFFEE MARKET IS LIKELY TO SWELL TO A FULL BOIL IN 1993 AND ANALYSTS SAY COFFEE WHICH UNTIL RECENTLY HAD BEEN IN ITS WORST BEAR MARKET IN TWO DECADES COULD HIT 1 A POUND BY THE END OF THIS YEAR ONE OF THE REASONS ANALYSTS ARE OPTIMISTIC IS THAT THEY EXPECT BRAZIL THE WORLD'S LARGEST COFFEE GROWER TO TURN IN A SMALLER CROP IN THE 199293 SEASON SOME ANALYSTS EVEN SAY THE INTERNATIONAL COFFEE ORGANIZATION WHICH HAS BEEN STRUGGLING FOR MORE THAN A YEAR TO REACH AN ACCORD ON COFFEE EXPORT QUOTAS MIGHT SUCCEED IN DOING SO AFTER A BEARISH START COFFEE PRICES STABILIZED LATE IN THE YEAR WITH THE MARCH FUTURES CONTRACT ENDING AT 7755 CENTS A POUND 9301040129 930104 RAYTHEON GETS AIRPORT CONTRACT LEXINGTON MASS RAYTHEON CO SAID IT HAS BEEN CHOSEN TO MODERNIZE AIR TRAFFIC CONTROL SYSTEMS AT BOMBAY AND DELHI AIRPORTS IN INDIA IT SAID IT EXPECTS TO NEGOTIATE A FINAL CONTRACT WORTH ABOUT 80 MILLION WITH INDIA'S NATIONAL AIRPORT AUTHORITY 9301040128 930104 TECHNOLOGY INFORMATION AGE DATA TRAP HOW USING YOUR PC CAN BE A WASTE OF TIME MONEY BY WILLIAM M BULKELEY CALL IT THE FIDDLE FACTOR IT'S EVERYTHING UNPRODUCTIVE THAT PEOPLE DO WITH PERSONAL COMPUTERS SOME FIDDLING MAY EVENTUALLY MAKE A PERSON MORE PRODUCTIVE SUCH AS LEARNING TO USE A NEW PROGRAM OR RECONSTRUCTING A FILE THAT WAS ACCIDENTALLY ERASED BUT MUCH OF IT IS STRAIGHT PROCRASTINATION THE EQUIVALENT OF SHARPENING PENCILS AND IT ALL COSTS IN EMPLOYEE TIME AND SALARIES NOW PEOPLE ARE TRYING TO QUANTIFY THE FIDDLE FACTOR AND IT'S PRETTY BIG MINNESOTA MINING & MANUFACTURING CO RESEARCHED THE TIME PEOPLE SPEND RECOVERING LOST DATA THE COMPANY CARES BECAUSE IT MAKES TAPE USED TO MAKE BACKUP COPIES OF THE FILES ON HARD DISKS IT FOUND THAT IN BUSINESS APPLICATIONS ALMOST 30 OF PC USERS LOSE DATA ANNUALLY AND THAT THEY SPEND AN AVERAGE OF ONE WEEK TO RECONSTRUCT OR RECOVER IT NATIONALLY THAT AMOUNTS TO 24 MILLION BUSINESS DAYS A YEAR VALUED AT ABOUT 4 BILLION 3M CALCULATED SBT ACCOUNTING SYSTEMS INC A SAUSALITO CALIF SOFTWARE CONCERN ASKED CUSTOMERS TO ESTIMATE HOW MUCH TIME THEY SPENT FUTZING WITH YOUR PC BASED ON THE RESEARCH DAVID HARRIS SBT'S VICE PRESIDENT SALES AND MARKETING SAYS PEOPLE SPENT 51 HOURS A WEEK FIDDLING WITH THEIR COMPUTERS HE SAYS THAT EXTRAPOLATES NATIONALLY TO LOSING 2 OF GROSS DOMESTIC PRODUCT ANNUALLY OF COURE STUDIES LIKE THESE THAT DON'T WATCH PEOPLE AT WORK BUT JUST ASK THEM TO ESTIMATE THE TIME THEY SPEND MAY EXAGGERATE THE PROBLEM EFFICIENCY EXPERTS WARN NEVERTHELESS SBT CLAIMS THAT MEN SPEND 19 MORE TIME FUTZING THAN WOMEN DO PROBABLY BECAUSE WOMEN ARE MUCH QUICKER TO ASK FOR HELP WHILE MEN HATE TO ASK FOR DIRECTIONS SBT SAYS THAT ABOUT 19 OF THE FUTZ TIME IS SPENT WAITING EITHER FOR COMPUTERS TO RUN PROGRAMS OR PRINT REPORTS OR WAITING ON HOLD FOR HELP WITH A PROBLEM 17 IS DEVOTED TO CHECKING OR FORMATTING PRINTED DOCUMENTS 17 IS TAKEN UP BY LOADING AND LEARNING NEW PROGRAMS 16 IS USED TO HELP COWORKERS 14 IS SPENT ORGANIZING AND ERASING OLD FILES AND 17 INCLUDES OTHER ACTIVITIES SUCH AS PLAYING GAMES ALMOST ALL PC USERS CAN CITE TIMES WHEN THEY GOT CARRIED AWAY BY THEIR MACHINES FOR LEWIS SCHWARTZ A STAMFORD CONN LAWYER IT WAS WHEN HE REALIZED HE HAD SPENT 15 HOURS SETTING UP STATISTICS AND DEPTH CHARTS FOR HIS SONS' LITTLE LEAGUE BASEBALL TEAM I COULD HAVE KEPT THEM ON A CLIPBOARD HE SAYS RICHARD MCGLINCHEY A LEXINGTON MASS PUBLIC RELATIONS FIRM OWNER WHO OFTEN WORKS FOR LOTUS DEVELOPMENT CORP SAYS THAT BEING ONLINE TO LOTUS EATS UP TIME THE SOAPBOX DATABASE WHERE EMPLOYEES CAN COMMENT ON ANYTHING THEY WANT PULLS YOU AWAY FROM WHAT YOU'RE REALLY WORKING ON BY OFFERING ENDLESS OPTIONS IN LAYOUT AND DESIGN AND THE PROMISE OF ULTIMATE PERFECTION COMPUTERS LURE USERS TO EXPERIMENT ENDLESSLY THOMAS WILLMOTT A MANAGEMENT CONSULTANT WITH ABERDEEN GROUP IN BOSTON SAYS HE WAS FRUSTRATED IN DESIGNING SLIDES FOR PRESENTATIONS BECAUSE THE GRAPHIC BULLETS USED FOR HIGHLIGHTING ITEMS WERE SOMETIMES OUT OF ALIGNMENT FIRST MR WILLMOTT SPENT SEVERAL DAYS READING THE MANUAL AND TRYING TO MAKE HIS SOFTWARE COMPATIBLE WITH THAT USED BY HIS SLIDEPRODUCTION HOUSE THEN HE CHANGED TO A NEW SOFTWARE PROGRAM MR WILLMOTT SAYS AFTER TWO WEEKS OF READING THE MANUAL AND A WEEK OF GETTING ALL THE FONTS TOGETHER I SPENT TWO MORE WEEKS TRANSFERRING THE KNOWLEDGE TO OTHER PARTNERS HE LIKES THE RESULTS BUT CONCEDES THE HIDDEN COSTS IN CONSULTANTS' TIME ARE IN THE THOUSANDS OF DOLLARS DOUBLE THE COST OF THE HARDWARE AND SOFTWARE GARY LOVEMAN AN ASSISTANT PROFESSOR AT HARVARD BUSINESS SCHOOL WHO HAS DONE RESEARCH ON WHY PCS HAVE FAILED TO BOOST WHITECOLLAR PRODUCTIVITY SAYS THE POWER OF THE PERSONAL COMPUTER MAKES IT FAIRLY EASY BUT RATHER TIMECONSUMING TO MAKE AN ENDLESS NUMBER OF REFINEMENTS IN DOCUMENTS AND SPREADSHEETS MR LOVEMAN SAYS RESEARCHERS FOUND THAT WHEN INTERNAL REVENUE SERVICE EXAMINERS WERE GIVEN LAPTOP COMPUTERS THEY DID EXAMINATIONS FASTER BUT DIDN'T INCREASE THE NUMBER THEY PERFORMED THEY SPENT SOME TIME WRITING MORE AESTHETICALLY PLEASING REPORTS THEY SPENT SOME TIME PLAYING GAMES HE SAYS ANOTHER PROBLEM THERE IS A SILICON IMPERATIVE THAT SAYS IF YOU'RE ABLE TO DO IT YOU HAVE TO DO IT' SAYS JIM SEYMOUR AN AUSTIN TEXAS COMPUTER CONSULTANT AND COLUMNIST WHO WRITES BOOKS ABOUT USING PCS PRODUCTIVELY HIS FAVORITE EXAMPLE RECEIVING FAXES ON A PC THE TIME SPENT OBTAINING A DEDICATED PHONE LINE FOR THE FAX BOARD AND TELLING PEOPLE TO SEND YOU FAXES THERE OUTWEIGHS ANY TIME SAVED BY NOT HAVING TO WALK DOWN THE HALL TO THE COMMUNAL FAX MACHINE HE SAYS AND THEN THERE ARE THE GEEKS WHO INSIST ON SHOWING YOU THE BENEFITS OF THEIR OWN FIDDLING TO REDESIGN A SCREEN OR COMPUTERIZE THEIR CALENDARS IT'S LIKE BEING BUTTONHOLED ABOUT THE KENNEDY ASSASSINATION CONSPIRACY THEY AREN'T HAPPY UNTIL THEY'VE CONVINCED YOU THEY'RE MORE EFFICIENT SAYS PHILIP COOPER MANAGING DIRECTOR OF BOSTON INTERNATIONAL ADVISORS INC A MONEY MANAGEMENT FIRM PEOPLE HAVE DIFFERENT SOLUTIONS TO FIDDLING MR SEYMOUR SAYS HE KEEPS TWO COMPUTERS IN TWO ADJOINING OFFICES HE EXPLAINS ONE IS A LEAN MEAN PRODUCTION MACHINE WHERE I DO ALL MY WRITING THEN THERE'S A BIG MISSILELAUNCHING MACHINE WITH HIGHLY TWEAKED WINDOWS AND ALL THE GEEGAWS WHERE I INDULGE MYSELF NORMAN WEIZER A LEXINGTON MASS TECHNOLOGY CONSULTANT SAYS HE AVOIDS READING HIS ELECTRONIC MAIL THE FIRST THING IN THE MORNING AND INSTEAD HANDLES IT AS TIME PERMITS DURING THE DAY HE HAS INSTRUCTED HIS COMPUTER TO ERASE CERTAIN MESSAGES AUTOMATICALLY WITHOUT EVEN LETTING HIM SEE THEM SBT ACCOUNTING RECOMMENDS THAT SMALL COMPANIES DESIGNATE EMPLOYEES TO BECOME EXPERTS ON DIFFERENT PROGRAMS SO THAT FELLOW WORKERS WON'T WASTE TIME PERUSING MANUALS OR ASKING UNFAMILIAR PEOPLE TO HELP HIRING CONSULTANTS TO TRAIN USERS CAN PAY OFF TOO SAYS MR HARRIS JAMES MINER PUBLISHER OF THE GEYSER A GEOTHERMAL INDUSTRY NEWSLETTER IN SANTA MONICA CALIF HAS ANOTHER SOLUTION HE DELEGATES COMPUTER TASKS TO OTHERS AND REFUSES TO LEARN TO DO THEM HIMSELF I KNOW TOO MANY VIDEO DRONES WHO ARE ADDICTED TO IT I'M AFRAID I'D LOSE MY EFFECTIVENESS HE SAYS 9301040127 930104 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 24 ACCOUNTED FOR 103 OR AN AVERAGE OF 208 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 59 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 361 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 488 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 392 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 513 INVOLVED TRADING FOR CUSTOMERS THE REMAINING 95 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES UBS SECURITIES AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS MORGAN STANLEY AND PAINEWEBBER DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9301040126 930104 ABREAST OF THE MARKET DEEPER CYCLICALS' ARE EXPECTED TO TAKE SPOTLIGHT AS THE RECOVERY KEEPS ROLLING BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT A DIFFERENCE A QUARTER MAKES FOR MOST OF 1992 INVESTORS WERE NERVOUS ABOUT THE FRAGILE ECONOMY BUT IN THE FOURTH QUARTER THEY TURNED OPTIMISTIC AS SIGNS OF A SOLID RECOVERY FINALLY BEGAN TO EMERGE BETTING ON A CONTINUED RECOVERY INVESTORS HAVE PILED INTO STOCKS THAT TEND TO IMPROVE ALONG WITH THE ECONOMY AND THESE CYCLICAL STOCKS LOOK LIKE THEY WILL CONTINUE TO SHINE THIS YEAR WE SAW THOSE STOCKS WITH A SENSITIVITY TO THE ECONOMIC CYCLE MOVE INTO THE VANGUARD IN THE FOURTH QUARTER SAYS JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH WE SHOULD SEE ANOTHER YEAR'S WORTH OF GOOD PERFORMANCE FROM CYCLICAL STOCKS BUT ANALYSTS SAY THAT THOUGH CYCLICAL STOCKS WILL CONTINUE TO STAR NEW LEADERS WITHIN THE GROUP ARE LIKELY TO EMERGE IN COMING MONTHS IN THE FOURTH QUARTER THE LIST OF TOP PERFORMERS WAS DOMINATED BY STOCKS THAT GENERALLY LEAD THE MARKET IN THE EARLY STAGES OF AN ECONOMIC RECOVERY BANKS TECHNOLOGY APPAREL RETAILERS AND HOME FURNISHINGS AS THE RECOVERY PROGRESSES HOWEVER ANALYSTS LOOK FOR SOCALLED DEEPER CYCLICALS SUCH AS HEAVY MACHINERY BASIC MATERIALS PRECIOUS METALS AND OIL STOCKS TO ASSUME LEADERSHIP ROLES JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ & CO IS BETTING ON THIS ROTATION WITHIN THE CYCLICAL GROUP THOSE THAT LAGGED IN THE FOURTH QUARTER WILL REPLACE THE ONES THAT LED HE SAYS BANK STOCKS ARE AMONG THE EARLY CYCLICAL LEADERS THAT MAY LOSE THEIR LUSTER THROUGHOUT 1992 BANKS IMPROVED THEIR PROFITS BY EXPLOITING THE STEEP YIELD CURVE THEY PAID LOW INTEREST RATES TO DEPOSITORS WHILE EARNING MUCH HIGHER YIELDS FROM INVESTING THE MONEY IN LONGERTERM GOVERNMENT NOTES AND BONDS BUT WITH SHORTTERM INTEREST RATES CREEPING UP AND LONGTERM RATES EDGING DOWN THE BANKS AREN'T LIKELY TO EXTEND THEIR STRONG GAINS OF THE FOURTH QUARTER MR SOLLOWAY SAYS MR SOLLOWAY NOW RECOMMENDS ONLY A FEW BANK STOCKS INCLUDING JP MORGAN AND BANKERS TRUST BECAUSE OF THEIR STRENGTH IN MERCHANT BANKING AND POSITIVE EARNINGS TRENDS TRANSPORTATION STOCKS SUCH AS AIR FREIGHT TRUCKING AND RAILS ALSO PERFORMED WELL IN THE LAST QUARTER BUT THE TRANSPORTS ARE EXPECTED TO KEEP RISING AS THE RECOVERY PROGRESSES THESE STOCKS USUALLY ARE SEEN AS LEADING INDICATORS OF FUTURE ECONOMIC ACTIVITY AND WHEN THE ECONOMY STARTS IMPROVING THEY BENEFIT FURTHER FROM INCREASED GOODS SHIPMENTS AROUND THE COUNTRY THE TRANSPORTATION GROUP STARTS DOING WELL EARLY IN THE ECONOMIC CYCLE PARTLY BECAUSE PEOPLE KNOW THESE STOCKS AND THEY CONTINUE TO DO WELL WHEN THE ROTATION MATURES SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT COUNTY NATWEST AS INVESTORS SWITCH THEIR BETS ON CYCLICAL STOCKS THE DOW JONES INDUSTRIAL AVERAGE COULD GET A BOOST THE AVERAGE IS HEAVILY WEIGHTED WITH LAGGING DEEP CYCLICAL STOCKS SUCH AS HEAVY MACHINERY HEAVY CONSTRUCTION AND INDUSTRIAL TECHNOLOGY DURING THE QUARTER THE INDUSTRIALS HAVE LAGGED BEHIND BOTH THE BROADER STANDARD & POOR'S 500STOCK INDEX AND THE OVERTHECOUNTER NASDAQ COMPOSITE INDEX MR CANELO SAYS SIGNS OF A SHIFT IN STOCKMARKET INDEX LEADERSHIP ARE ALREADY EVIDENT THE NASDAQ APPEARS TO BE BUILDING TO A TOP AND THE S&P IS GETTING INTO EXPENSIVE TERRITORY HE SAYS PEOPLE ARE STARTING TO LOOK FOR STOCKS THAT HAVEN'T MOVED AS MUCH AND THIS IS WHEN THE DOW JONES AVERAGE STARTS TO BECOME THE LEADER THE STRENGTHENING ECONOMY ALSO IS EXPECTED TO CAUSE LONGDORMANT COMMODITY PRICES TO RISE DESPITE THE ECONOMIC UPTURN PRICES OF METALS CHEMICALS NATURAL GAS AND OIL HAVE REMAINED SLUGGISH WHICH HAS HELPED RESTRAIN INFLATION WE'LL SOON SEE FIRMER COMMODITY PRICES AND THAT WILL BENEFIT SUCH CYCLICAL INDUSTRY GROUPS AS CHEMICALS PAPER PRODUCTS AND BASE METALS SAYS ARGUS'S MR SOLLOWAY BUT IF I WERE TO INVEST IN A BEATEN DOWN COMMODITY IT WOULD BE OIL HAVING FINISHED NEARLY LAST IN THE QUARTER THE OIL GROUP IS A PRIME CANDIDATE FOR A SHARP TURNAROUND IN COMING MONTHS DILLON READ'S MR MCALINDEN AGREES I THINK WE'LL SEE AN UPSIDE SURPRISE IN WORLD OIL PRICES BECAUSE OF THE ECONOMIC STRENGTH OF THE US WHICH IS STILL THE BIGGEST CONSUMER OF OIL HE SAYS IF YOU LOOK BEYOND THE FIRST QUARTER TO THE SECOND AND THIRD QUARTERS I THINK YOU'LL SEE ENERGY MOVE TO THE TOP OF THE PERFORMANCE LIST MR SOLLOWAY FINDS MANY FAVORITES AMONG THE MAJOR OIL COMPANIES HE NOTES THAT SOME OFFER ATTRACTIVE DIVIDEND YIELDS MANY OIL MAJORS ARE GREAT BUYS FOR INVESTORS WHO WANT A COMBINATION OF CAPITAL APPRECIATION AND INCOME HE SAYS MR SOLLOWAY LIKES MOBIL FOR ITS DIVIDEND YIELD OF ABOUT 5 1/2 ATLANTIC RICHFIELD FOR ITS EXPOSURE TO NATURAL GAS AND PHILLIPS PETROLEUM AS A LEVERAGED PLAY HOWEVER MR MCALINDEN WORRIES THAT RISING COMMODITY PRICES COULD REIGNITE INFLATION AND RESTRAIN THE STOCK MARKET'S ADVANCE AT THE MOMENT INFLATION IS TOTALLY SUBDUED BUT I THINK IT WILL FLARE UP NEXT YEAR IN A LAGGED RESPONSE TO MONETARY STIMULATION OVER THE LAST TWO YEARS HE SAYS THE STOCK MARKET STILL MIGHT SURGE EARLY IN THE YEAR BUT COULD CLOSE THE YEAR FLAT BECAUSE OF THE NEGATIVE IMPACT OF HIGHER INFLATION OF COURSE NOT ALL STOCKS THAT MOVED UP IN THE FOURTH QUARTER WERE CYCLICALS FOR INSTANCE FULLLINE INSURANCE STOCKS SURGED GAINING 156 DURING THE QUARTER AS PARTS OF THE COUNTRY SUFFERED FROM HURRICANES TORNADOES AND FLOODS THAT LED INVESTORS TO BET THAT INSURANCE PREMIUMS WILL RISE INSURANCE STOCKS RESPONDED ON THE ASSUMPTION THAT THE NEWS WAS SO BAD THAT IT HAD TO LEAD TO A CONTRACTION IN THE INDUSTRY AND HIGHER PREMIUM PRICES MR SOLLOWAY SAYS BUT INVESTORS GOT TOO ENTHUSIASTIC IN THEIR ASSESSMENT WHILE THERE'S CERTAIN REASON TO EXPECT PREMIUM PRICING TO IMPROVE THE BENEFICIAL IMPACT IS SOME TIME AWAY AS A RESULT ARGUS RESEARCH HAS DOWNGRADED AETNA GENERAL RE AND AMERICAN INTERNATIONAL GROUP IT IS OUR BELIEF INVESTORS HAVE BID UP THE SHARES TOO AGGRESSIVELY MR SOLLOWAY SAYS IN SOME CASES THE PERFORMANCE OF AN INDUSTRY GROUP WAS STRONGLY INFLUENCED BY AN INDIVIDUAL STOCK IF INTERNATIONAL BUSINESS MACHINES IS INCLUDED IN THE GROUP FOR INSTANCE COMPUTER STOCKS REGISTERED A DISMAL 129 DECLINE BUT ELIMINATE IBM FROM THE GROUP AND COMPUTER ISSUES WERE UP AN IMPRESSIVE 187 FOR THE QUARTER THIS POINTS OUT THAT IBM'S PROBLEMS ARE NOT THE INDUSTRY'S PROBLEMS AND THAT THINGS ARE LOOKING UP FOR COMPUTER MAKERS MR SOLLOWAY SAYS BLUECHIP STOCKS SANK ON A LATE BOUT OF PROGRAM TRADING BUT SMALLER ISSUES SURGED THE DOW JONES INDUSTRIAL AVERAGE SLID 1999 POINTS TO FINISH THE YEAR AT 330111 STANDARD & POOR'S 500STOCK INDEX SANK 311 TO 43571 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 095 TO 24021 ADVANCING ISSUES OUTPACED DECLINERS 1126694 ON THE BIG BOARD WHERE VOLUME FELL TO 165910000 SHARES FROM 183870000 SHARES ON WEDNESDAY FOR THE WEEK THE DOW JONES INDUSTRIALS LOST 08 THE S&P 500 SHED 09 AND THE NYSE COMPOSITE DROPPED 04 THAT LEFT THE INDUSTRIALS WITH A 42 ADVANCE ON THE YEAR THE S&P 500 WITH A 45 GAIN AND THE NYSE COMPOSITE UP 47 AMONG THE 30 STOCKS OF THE DOW JONES INDUSTRIALS THE BIGGEST LOSER OF THE YEAR WAS INTERNATIONAL BUSINESS MACHINES WHICH PLUNGED 434 IN 1992 BUT IBM GAINED 1/4 ON THURSDAY TO END AT 50 3/8 AFTER SPINNING OFF ITS PRAXAIR UNIT UNION CARBIDE WOUND UP AS THE DOW JONES INDUSTRIALS' BIGGEST GAINER THE STOCK BEGAN THE YEAR AT 20 1/4 AND LATER SPUN OFF ITS INDUSTRIAL GASES SUBSIDIARY TO SHAREHOLDERS AT A VALUE OF ABOUT 15 A SHARE UNION CARBIDE CLOSED THURSDAY AT 16 5/8 UP 1/8 PRAXIAR ENDED AT 16 3/4 UP 1/4 GIVING INVESTORS WHO HELD ON TO THEIR PRAXAIR SHARES ABOUT A 65 GAIN FOR THE YEAR WALT DISNEY WAS THE NEXT BEST PERFORMER IN THE INDUSTRIAL AVERAGE JUMPING MORE THAN 50 TO 43 THE STOCK ADDED 1/2 POINT THURSDAY MOLECULAR BIOSYSTEMS SURGED 2 1/2 ON THURSDAY TO 20 7/8 AFTER ANNOUNCING THAT IT HAD MET THE FOOD AND DRUG ADMINISTRATION'S REQUEST FOR ADDITIONAL INFORMATION REGARDING ITS ULTRASOUND IMAGING AGENT ALBUNEX IN JULY AN FDA PANEL RECOMMENDED THAT ALBUNEX BE APPROVED FOR SALE AND USE AMERICAN STOCK EXCHANGE VOLUME TOTALED 18260000 SHARES COMPARED WITH 17190000 YESTERDAY ADVANCING ISSUES OUTPACED DECLINERS 402 TO 217 WITH 219 UNCHANGED THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ENDED THE YEAR AT 39923 UP 348 THURSDAY BUT ONLY 1 ABOVE WHERE IT STARTED THE YEAR CHAMBERS DEVELOPMENT'S CLASS A SHARES GAINED 1 1/4 TO 6 7/8 AFTER ADDING A POINT WEDNESDAY THE COMPANY HAS RECEIVED A PERMIT FOR AN OHIO LANDFILL 9301040125 930104 FEDERAL FARM CREDIT CALLS BONDS NEW YORK THE FEDERAL FARM CREDIT BANKS FUNDING CORP SAID IT CALLED 490 MILLION OF FEDERAL FARM CREDIT BANKS CONSOLIDATED SYSTEMWIDE BONDS THE COMPANY CALLED 175 MILLION OF 66 OPTIONAL PRINCIPAL REDEMPTION BONDS AND 315 MILLION OF 643 OPTIONAL PRINCIPAL REDEMPTION BONDS BOTH DUE FEB 3 1997 THE BONDS WILL BE REDEEMED AT 100 OF THEIR FACE VALUE ON FEB 3 ACCRUED INTEREST FROM AUG 3 THROUGH BUT NOT INCLUDING FEB 3 ALSO WILL BE PAID ON THAT DATE 9301040124 930104 WHO'S NEWS BRISTOLMYERS SQUIBB CO BRISTOLMYERS SQUIBB CO NEW YORK PETER R DOLAN 36 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF SALES MARKETING OPERATIONS AND FINANCE AT BRISTOLMYERS PRODUCTS A DIVISION OF THIS HEALTH CARE PRODUCTS CONCERN MR DOLAN WHO WILL ALSO HAVE RESPONSIBILITY FOR US PRODUCT DEVELOPMENT PROJECTS HAD BEEN VICE PRESIDENT OF MARKETING FOR THE UNIT MR DOLAN'S POSITION IS NEWLY CREATED 9301040123 930104 LEISURE & ARTS BOOKSHELF A CALL FOR REVOLUTION IN EDUCATION BY WILLIAM J MOLONEY WHEN ASKED WHAT HE WOULD BE DOING BETWEEN THE PRESIDENTIAL ELECTION AND THE INAUGURATION JOHN F KENNEDY SURPRISED MANY PEOPLE BY SAYING A LOT OF READING AND THINKING THE SELFCONFIDENT KENNEDY KNEW THAT BEING ALONE WITH A GOOD BOOK AND HIS OWN THOUGHTS WAS FREQUENTLY LESS TIRESOME AND MORE REWARDING THAN DEALING WITH AN ENDLESS LINE OF COURTIERS THOUGH BILL CLINTON CLEARLY RELISHES PARALLELS BETWEEN HIMSELF AND JFK HE KNOWS HE WILL NEED A VERY DIFFERENT READING LIST KENNEDY SAW HIS GREATEST ROLE AS MEETING THE CHALLENGE OF THE COLD WAR MR CLINTON MUST DEAL WITH ITS END WHILE KENNEDY INHERITED AN AMERICAN ECONOMY AT ITS COMPETITIVE ZENITH MR CLINTON IS HEIR TO A COMPETITIVELY FALTERING ECONOMY MR CLINTON UNDERSTANDS AS WELL AS ANYONE THAT RESUSCITATING THE COUNTRY'S ECONOMY REQUIRES RESUSCITATING ITS EDUCATIONAL SYSTEM AS WELL EVEN HIS STERNEST CRITICS WILL CONCEDE THAT HE WAS AMONG THE ELITE OF THE EDUCATION GOVERNORS PERHAPS WHILE PONDERING THE GAME PLAN FOR HIS NEW EDUCATION SECRETARY THE PRESIDENTELECT MIGHT PROFITABLY SPEND SOME TIME READING THOMAS W EVANS'S MENTORS MAKING A DIFFERENCE IN OUR PUBLIC SCHOOLS PETERSON'S 224 PAGES 1895 IT IS A REMARKABLE BOOK MR EVANS JOINS SUCH DISPARATE COMMENTATORS AS WILLIAM BENNETT AND ALBERT SHANKER IN ASSERTING THAT SALVATION FOR AMERICAN EDUCATION REQUIRES NOT TINKERING BUT REVOLUTION ECHOING GEORGES CLEMENCEAU'S FAMOUS APHORISM THAT WAR IS TOO IMPORTANT TO BE LEFT TO THE GENERALS MR EVANS FEELS THAT EDUCATION IS TOO IMPORTANT TO BE LEFT TO THE EDUCATORS THE REVOLUTION MUST ARISE AMONG CITIZENS FROM EVERY WALK OF LIFE WHO ARE PREPARED TO MAKE A PERSONAL COMMITMENT TO EDUCATING CHILDREN MENTORS IS ESSENTIALLY A COLLECTION OF STORIES ABOUT PEOPLE WHO DECIDED TO GET INVOLVED RATHER THAN WAIT FOR YET ONE MORE STUDY OR PRESIDENTIAL COMMISSION THEY INCLUDE RICH AND POOR CELEBRITIES AS WELL AS THE PEOPLE NEXT DOOR SOME BEGAN WITH A SINGLE CHILD WHILE OTHERS FOUNDED A SCHOOL OR AN ORGANIZATION SOME SOUGHT TO MAKE A DIFFERENCE IN A SINGLE NEIGHBORHOOD WHILE OTHERS SOUGHT TO TRANSFORM A CITY A SENIOR PARTNER IN A WALL STREET LAW FIRM MR EVANS IS ALSO CHAIRMAN OF THE BOARD AT TEACHERS COLLEGE COLUMBIA UNIVERSITY IN 1983 HE BEGAN A SMALL PILOT PROGRAM CALLED MENTOR WHICH PAIRED LAW FIRMS WITH NEW YORK CITY SCHOOLS MODELED ON SIMILAR PROGRAMS INVOLVING DOCTORS AND DENTISTS IT SOUGHT TO EXPOSE ATRISK KIDS TO THE LAW AS A PROFESSION WITH MINIMAL COST MENTOR SUCCEEDED AND GREW TO INCLUDE 40 LAW FIRMS SOME 550 SCHOOLS AND 30000 STUDENTS IN 20 STATES AND TWO CANADIAN PROVINCES SUBSEQUENTLY MR EVANS FOUNDED THE NATIONAL SYMPOSIUM ON PARTNERSHIPS IN EDUCATION MR EVANS'S BESTKNOWN MENTOR IS EUGENE LANG WHO IN 1981 PROMISED 61 HARLEM SIXTH GRADERS THAT IF THEY STAYED IN SCHOOL AND GRADUATED HE WOULD PAY THEIR COLLEGE TUITION TODAY BENEFACTORS IN 40 CITIES COMMIT A MINIMUM OF 350000 TO MAKE THE SAME PROMISE CHAPTER HEADINGS REVEAL THE EXTRAORDINARY DIVERSITY OF HIS MENTORS CELEBRITIES AS MENTORS INCLUDES THE PHILANTHROPY OF BILL COSBY AND ARNOLD SCHWARZENEGGER MENTORS OR MERCHANTS INTRODUCES CHRIS WHITTLE IN ONE OF THE BOOK'S FEW BUT RESPECTFUL REFERENCES TO CHOICE THOSE CREATING A NEW SCHOOL INCLUDE MARVA COLLINS OF CHICAGO'S WESTSIDE PREP AND TED SIZER OF THE COALITION OF ESSENTIAL SCHOOLS AND IN START YOUR OWN ORGANIZATION WE ENCOUNTER BOOK IT THE EXCELLENT PIZZA HUT INCSPONSORED READING INCENTIVE PROGRAM THAT REACHES 17 MILLION CHILDREN OF ALL THESE STORIES THE MOST IMPRESSIVE ARE THOSE ABOUT ORDINARY PEOPLE WHO SIMPLY SAW A BASIC NEED AND TRIED TO MEET IT SUCH A PERSON IS BETTY FLOOD WHO AT THE END OF HER OWN WORKDAY COMMITS AN ADDITIONAL SIX HOURS TO SUPERVISE A NEIGHBORHOOD YOUTH CENTER SHE FOUNDED IN HER APARTMENT COMPLEX IN NEWARK NJ FOR 250 KIDS AGE FOUR TO 18 SHE PROVIDES ENCOURAGEMENT WITH HOMEWORK AND A SAFE PLACE TO OVERCOME THE PROBLEMS ABOUNDING IN THEIR LIVES CHARITY BEGINS AT HOME SAYS MS FLOOD YET PEOPLE DON'T REALIZE THIS THEY FEEL IF THEY WANT TO VOLUNTEER THEY HAVE TO GO THROUGH UNITED WAY OR A HOSPITAL OR GO INTO A BIG ORGANIZATION NO IT'S UP TO US IN EACH INDIVIDUAL COMMUNITY TO TRY TO HELP EACH OTHER MS FLOOD EMBODIES A MAIN THEME OF MR EVANS'S BOOK START SMALL START NOW FOR THOSE WHO SEE SAVING OUR SCHOOLS AS A MATTER OF HIGH POLICY AND GOVERNMENT INTERVENTION MENTORS WILL BE AN ANNOYANCE BUT FOR THOSE WHO SEE THAT TASK AS REQUIRING THE BROADEST CITIZEN INVOLVEMENT THE BOOK OFFERS A WEALTH OF PRACTICAL INFORMATION AS WELL AS A BUOYANT OPTIMISM ABOUT OUR CHANCES FOR SUCCESS THE STRUCTURES OF AMERICAN PUBLIC EDUCATION NO LONGER CORRESPOND TO THE NEEDS OF OUR COUNTRY OR OUR CHILDREN THE NEEDED REVOLUTION IS ALREADY OCCURRING AT THE STATE AND LOCAL LEVEL AND THE ATTENDANT BLURRING OF THE LINES BETWEEN PUBLIC AND PRIVATE SECTORS OWES MUCH TO THE INVENTION AND ENERGY OF COMMITTED INDIVIDUALS DR MOLONEY IS SUPERINTENDENT OF SCHOOLS IN EASTON PA 9301040122 930104 SEITEL ACQUIRES SEISMIC SURVEYS HOUSTON SEITEL INC SAID IT ACQUIRED SUBSTANTIALLY ALL OF THE LIBRARY OF SEISMIC SURVEYS OWNED BY GRANT TENSOR GEOPHYSICAL CORP ALSO OF HOUSTON THE PURCHASE WHICH INCREASED THE SIZE OF SEITEL'S LIBRARY BY ONETHIRD CONSISTED OF ABOUT 146500 MILES OF OFFSHORE AND ONSHORE SEISMIC DATA TERMS WEREN'T DISCLOSED A COMPANY SPOKESMAN SAID SEITEL EXPECTS THE ACQUISITION TO GENERATE A MATERIAL AMOUNT OF REVENUE RIGHT AWAY SEITEL PRODUCES AND MARKETS SEISMIC DATA FOR THE PETROLEUM INDUSTRY 9301040121 930104 WHO'S NEWS SOCIETE GENERALE SOCIETE GENERALE PARIS JEAN R HUET 51 YEARS OLD WAS NAMED GENERAL MANAGER OF SOCIETE GENERALE USA THE US BANKING NETWORK OF THE BIG PRIVATE FRENCH BANKING GROUP MR HUET WHO HAD BEEN GENERAL MANAGER OF SOCIETE GENERALE UK IN LONDON SUCCEEDS JACQUES BOUHET 50 WHO WILL RETURN TO THE PARENT COMPANY IN PARIS AS DEPUTY GENERAL MANAGER OF THE INTERNATIONAL DIVISION 9301040120 930104 CONVERSION OF VSB BANCORP CLOSTER NJ VSB BANCORP INC SAID IT CONVERTED TO A BANK HOLDING COMPANY SUBJECT TO REGULATION BY THE FEDERAL RESERVE SYSTEM AND NO LONGER IS A SAVINGS AND LOAN HOLDING COMPANY VALLEY SAVINGS BANK VSB'S PRINCIPAL SUBSIDIARY HAS CONVERTED FROM A NEW JERSEY CHARTERED SAVINGS ASSOCIATION TO A NEW JERSEY CHARTERED SAVINGS BANK THE BANK WILL CONTINUE TO HAVE DEPOSITS INSURED BY THE FDIC THE CONVERSION IS EXPECTED TO REDUCE THE REGULATORY COSTS AND BURDENS APPLICABLE TO VALLEY SAVINGS BANK AND VSB BANCORP INC SAID ALLEN S GREENE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE VALLEY SAVINGS BANK HAD ASSETS OF 3437 MILLION AS OF SEPT 30 9301040119 930104 IDB COMMUNICATIONS LICENSE CULVER CITY CALIF IDB COMMUNICATIONS GROUP INC SAID IT WAS ISSUED A SEVENYEAR OPERATING LICENSE FOR SATELLITE TRANSMISSION SERVICES BY THE MINISTRY OF COMMUNICATIONS OF THE REPUBLIC OF KAZAKHSTAN TERMS WEREN'T DISCLOSED IDB SAID THE AGREEMENT BETWEEN IT AND THE MINISTRY CALLS FOR THE PARTIES TO INTERCONNECT THEIR OPERATING FACILITIES FOR INTERNATIONAL BUSINESS SERVICES INCLUDING PRIVATELINE LEASE CHANNELS FOR VOICE AND DATA 9301040118 930104 RALPH KRAMDEN REPORTS ON TRAFFIC WITH DR KILDARE ON MEDICAL TIPS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL WILLARD SCOTT HAS COMPETITION GILLIGAN THE FEARLESS ALBEIT LUCKLESS SAILOR OF MINNOW FAME HAS BECOME THE MOST UNUSUAL FILLIN WEATHERMAN IN WEST VIRGINIA HIS ADOPTED STATE HIS NEXT GIG IS IN FEBRUARY AT CHARLESTONBASED WCHA IF I'D HAD A LITTLE MORE EXPERIENCE WEATHER FORECASTING WE WOULD HAVE AVOIDED THE STORM SAYS ACTOR BOB DENVER WHO PLAYED THE CHILDLIKE SAILOR WHO WORE A WHITE TENNIS HAT AND A RED SHIRT ON GILLIGAN'S ISLAND A HIT SITCOM ABOUT A STRANDED TOUR SHIP THE SHOW WENT INTO SYNDICATION IN 1966 AFTER THREE YEARS AND ABOUT 100 EPISODES BEFORE GILLIGAN MR DENVER PLAYED DOBIE GILLIS'S BEATNIK FRIEND MAYNARD G KREBS THE 57YEAROLD MR DENVER SAYS HE'S NOT A HARDCORE METEOROLOGIST I FIGURE MOST PEOPLE KNOW WHAT THE WEATHER IS HE SAYS SO I JUST SAY YOU KNOW WHERE YOU ARE AND YOU KNOW WHAT THE TEMPERATURE IS BESIDES HE SAYS PREDICTING THE WEATHER IS A GAMBLE ANYWAY THEY CAN SAY IT'S GOING TO SNOW ON SUNDAY BUT I DON'T HEAR THEM PUTTING BETS UP HE SAYS AT WVVA BLUEFIELD W VA WHERE MR DENVER DID HIS FIRST STINT IN JULY STATION MANAGER LARRY ROE SAYS THAT THE ACTOR A LITTLE BAFFLED BY THE MAPS WAS MORE ENTERTAINING THAN INFORMATIVE HE DID GET THE CORRECT FORECAST BUT HE KNEW NOTHING ABOUT WHY HE WAS UP THERE HE SAYS MORE IMPORTANTLY MR DENVER BOOSTED RATINGS OF THE NEWS SHOW BY TWO POINTS THAT WEEK GENE FUNDERBURK A NATIONAL WEATHER SERVICE SPECIALIST AT RALEIGH COUNTY AIRPORT IN BECKLEY SAYS IT WOULD BE TOUGH FOR GILLIGAN TO GOOF THE WEATHER SERVICE GIVES ALL THESE RADIO AND TV STATIONS THE INFORMATION THEY NEED HE SAYS ADDING THOUGH THAT IT WOULD HELP IF MR DENVER HAD SOME KNOWLEDGE OF WEATHER MR DENVER INSISTS HE'S NOT MAKING A CAREER OF DOING THE WEATHER HE'S WRITING A BOOK ABOUT HIS EXPLOITS AS GILLIGAN AND MAYNARD AND MAKING GUEST APPEARANCES ON VARIOUS TV SHOWS HE SETTLED IN PRINCETON WVA 18 MONTHS AGO WITH HIS WIFE DREAMA AND THEIR EIGHTYEAROLD SON COLIN AFTER DECADES DOING DINNER THEATER LAS VEGAS REVUES AND FOUR GILLIGAN REUNION TV MOVIES MR DENVER AGREED TO FILL IN AS A WEATHERMAN TO PROMOTE A PET PROJECT BOB DENVER'S PUTTPUTT A NONPROFIT MINIATURE GOLF AND VIDEOGAME ARCADE PLANNED ALL OVER THE WORLD TO BENEFIT DISABLED KIDS 9301040117 930104 WHAT'S NEWS WORLDWIDE YELTSIN AND BUSH SIGNED A HISTORIC MISSILEREDUCTION PACT IN MOSCOW THE TWO PRESIDENTS SIGNED THE FARREACHING ARMSCONTROL TREATY KNOWN AS START II AT A KREMLIN CEREMONY YELTSIN DESCRIBED THE ACCORD AS A MAJOR STEP TOWARD FULFILLING MANKIND'S CENTURIESOLD DREAM OF DISARMAMENT BUSH PRAISED THE RUSSIAN LEADER FOR PUSHING THE DISARMAMENT PROCESS FURTHER THAN FEW BELIEVED POSSIBLE JUST ONE YEAR AGO THE AGREEMENT STILL MUST BE APPROVED BY THE US SENATE AND BY RUSSIA'S PARLIAMENT WHERE CONSERVATIVES OBJECT TO THE TREATY'S REQUIREMENT THAT RUSSIA GIVE UP ITS MOST SOPHISTICATED MISSILE THE SS18 YELTSIN INVITED CLINTON TO MEET IN A NEUTRAL COUNTRY AS SOON AS POSSIBLE ADDING THAT ANY LULL IN USRUSSIAN RELATIONS WOULD BE CAUSE FOR CONCERN GERMANY'S ECONOMICS MINISTER QUIT AMID ACCUSATIONS THAT THE COUNTRY'S ECONOMIC TROUBLES ARE TOO SEVERE FOR HIM TO HANDLE MOELLEMANN'S PROBLEMS BEGAN LAST MONTH WHEN A MAGAZINE PUBLISHED A COPY OF AN OFFICIAL LETTER WITH HIS SIGNATURE ENDORSING A PRODUCT MADE BY A COMPANY HEADED BY A RELATIVE THE GERMAN GOVERNMENT MAY USE RADAR AND NIGHT VISION DEVICES TO MONITOR ITS EASTERN BORDERS AS PART OF A CRACKDOWN ON ILLEGAL IMMIGRANTS AN INTERIOR MINISTRY SPOKESMAN ANNOUNCED HE SAID THE GOVERNMENT WOULD TEST THE MILITARY SURVEILLANCE EQUIPMENT ALONG GERMANY'S BORDERS WITH POLAND AND THE CZECH REPUBLIC BUSH WON BROAD AGREEMENT FROM FRANCE'S MITTERRAND ON ENFORCING A FLIGHT BAN OVER BOSNIA BUT SAID ANY MILITARY ACTION MUST AWAIT THE OUTCOME OF PEACE TALKS IN GENEVA BOSNIA RAISED OBJECTIONS TO A PEACE PLAN THAT WOULD DIVIDE THE FORMER YUGOSLAV REPUBLIC INTO 10 PROVINCES SAYING IT WOULD INSTITUTIONALIZE ETHNIC DIVISION STONETHROWING SOMALIS YELLED BOUTROSGHALI GO HOME AND BESIEGED THE HEADQUARTERS OF THE UN OPERATION IN SOMALIA DURING A VISIT BY THE UN CHIEF LEAFLETS TOSSED INTO THE UN COMPOUND IN MOGADISHU DENOUNCED BOUTROSGHALI AS A COLONIALIST AND HAILED PRESIDENT BUSH WHO VISITED SOMALIA LATE LAST WEEK AS A SAVIOR A PALESTINIAN KILLED AN UNDERCOVER ISRAELI POLICE OFFICER WITH A KNIFE AND HAMMER IN WHAT IS BELIEVED TO BE THE FIRST SLAYING OF A SECRET AGENT DURING THE FIVEYEAROLD UPRISING AGAINST ISRAELI RULE POLICE SAID EARLIER ISRAELI SOLDIERS CLASHED WITH STONETHROWING PALESTINIANS IN THE GAZA STRIP AND REPORTEDLY SHOT TO DEATH AN 18YEAROLD ARAB CLINTON'S AIDES ARE FORMULATING A POLICY TOWARD HAITI AIMED AT FORESTALLING A SURGE OF IMMIGRANTS TO THE US THE CLINTON ADMINISTRATION WILL SEEK TO ESTABLISH AN EQUITABLE REFUGEE POLICY THAT WILL BE LINKED TO EFFORTS TOWARD BRINGING ECONOMIC RELIEF AND DEMOCRACY TO HAITI ACCORDING TO THE PRESIDENTELECT'S ADVISERS NASA GAVE UP AN ATTEMPT TO SEND AN EIGHTLEGGED ROBOT INTO THE CRATER OF AN ACTIVE ANTARCTIC VOLCANO MOUNT EREBUS ON SATURDAY AFTER THE ROBOT'S FIBEROPTIC CABLE BECAME SEVERED THE EIGHTFOOTHIGH 1000POUND ROBOT DANTE WAS TO HAVE HELPED DETERMINE THE MAKEUP OF THE VOLCANO'S MOLTEN CRATER AND ITS GASES MORE THAN 40000 MUSLIMS GATHERED IN WESTERN BANGLADESH PREPARING TO MARCH INTO INDIA TODAY TO REBUILD A MOSQUE DEMOLISHED LAST MONTH BY HINDUS AS THE MUSLIMS CONTINUED TO ARRIVE IN THE BORDER TOWN OF JESSORE DISTRICT AUTHORITIES IN BANGLADESH VOWED TO STOP THE MARCH INDIAN SECURITY FORCES ALSO WERE PLACED ON ALERT KENYA'S THREE OPPOSITION PARTIES MET TO TRY TO BLOCK PRESIDENT MOI FROM TAKING OFFICE AFTER HIS VICTORY IN LAST TUESDAY'S ELECTIONS OFFICIALS SAID OVER THE WEEKEND INTERNATIONAL POLL MONITORS CRITICIZED THE GOVERNMENT FOR WIDESPREAD VOTING IRREGULARITIES BUT DIDN'T REJECT THE ELECTION RESULTS CLINTON ENDED A SIXDAY VACATION VISIT TO HILTON HEAD ISLAND SC WHERE HE SPENT MOST OF HIS TIME ATTENDING RENAISSANCE WEEKEND A NETWORKING CONFERENCE CLINTON PLANS TO MEET WITH MEXICO'S PRESIDENT SALINAS ON FRIDAY IN AUSTIN TEXAS AT LEAST 100 PEOPLE WERE KILLED IN A BATTLE BETWEEN FORCES OF THE ANGOLAN GOVERNMENT AND THE REBEL MOVEMENT UNITA IN THE SOUTHERN CITY OF LUBANGO THE OFFICIAL ANGOLAN NEWS AGENCY SAID ACCORDING TO THE AGENCY GOVERNMENT FORCES WERE IN CONTROL OF LUBANGO AND UNITA'S REGIONAL COMMANDER HAD BEEN CAPTURED 9301040116 930104 NEW SECURITIES ISSUES THERE WERE NO OFFERINGS OR PRICINGS IN US OR NONUS CAPITAL MARKETS THURSDAY OR FRIDAY 9301040115 930104 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES GERALD M STERN 55 YEARS OLD RETIRED AS EXECUTIVE VICE PRESIDENT AND A DIRECTOR MR STERN SERVED AS SENIOR GENERAL COUNSEL AND CORPORATE SECRETARY THE COMPANY SAID JOHN W ALDEN OCCIDENTAL'S ASSOCIATE GENERAL COUNSEL WILL SERVE AS ACTING GENERAL COUNSEL UNTIL A SUCCESSOR TO MR STERN IS NAMED MR STERN HAD BEEN SENIOR GENERAL COUNSEL SINCE 1981 A DIRECTOR SINCE 1988 AND CORPORATE SECRETARY SINCE JANUARY 1992 9301040114 930104 CINTAS BUYS MARYATT UNIFORMRENTAL FIRM CINCINNATI CINTAS CORP A CORPORATE UNIFORMRENTAL CONCERN SAID IT COMPLETED THE ACQUISITION OF MARYATT INDUSTRIES FOR ABOUT 28 MILLION MARYATT A UNIFORMRENTAL CONCERN BASED IN SEATTLE HAS ANNUAL SALES OF ABOUT 28 MILLION CINTAS ALSO SAID IT COMPLETED THE ACQUISITIONS OF DAVE'S QUALITY UNIFORM SUPPLY INC OF OREGON CITY ORE AND STAR UNIFORM RENTAL SERVICE OF PORTLAND MAINE BOTH COMPANIES HAVE ANNUAL REVENUE OF ABOUT 15 MILLION IN THE FISCAL YEAR ENDED MAY 31 CINTAS HAD 4016 MILLION IN SALES IT EARNED 392 MILLION OR 85 CENTS A SHARE 9301040113 930104 MOLECULAR BIOSYSTEMS GIVES FDA MORE DATA ON ALBUNEX PRODUCT SAN DIEGO MOLECULAR BIOSYSTEMS INC SAID IT SUBMITTED TO THE FOOD AND DRUG ADMINISTRATION AN AMENDED PREMARKET APPROVAL APPLICATION FOR ITS ALBUNEX CARDIAC ULTRASOUND IMAGING AGENT IN NOVEMBER THE FDA REQUESTED CERTAIN ADDITIONAL INFORMATION REGARDING ALBUNEX AND ITS MANUFACTURE THE COMPANY SAID IT COULD EXPEDITIOUSLY PROVIDE INFORMATION SOUGHT BY THE AGENCY MOLECULAR BIOSYSTEMS SAID THAT THE FDA HAS 180 DAYS TO REVIEW THE AMENDMENT ORIGINALLY THE COMPANY HAD HOPED ALBUNEX ITS FLAGSHIP PRODUCT WOULD BE APPROVED BY THE END OF 1992 9301040112 930104 INTERNATIONAL IMF MOVE ON CZECHSLOVAK SPLIT WASHINGTON THE INTERNATIONAL MONETARY FUND SAID IT APPROVED MEASURES TO REALLOCATE CZECHOSLOVAKIA'S SHARE IN THE AGENCY TO THE NATION'S SUCCESSOR CZECH AND SLOVAK STATES THE REALLOCATION GIVES THE CZECH REPUBLIC A 6961 SHARE AND THE SLOVAK REPUBLIC A 3039 HOLDING UNDER THE REALLOCATION THE NATION'S LIABILITIES TO THE IMF WILL BE APPORTIONED TO THE CZECH AND SLOVAK REPUBLICS ON THE SAME PERCENTAGE BASIS 9301040111 930104 CORRECTIONS & AMPLIFICATIONS FUND AMERICAN ENTERPRISES HOLDINGS INC PROVIDED ITS CHAIRMAN WITH A 30 MILLION SECURED TERM LOAN TO FINANCE THE EXERCISE OF OPTIONS AND WARRANTS AN ARTICLE THURSDAY INCORRECTLY DESCRIBED THE LOAN AS A 30YEAR LOAN 9301040110 930104 INTERNATIONAL BRITAIN'S MAJOR SPEAKS OF ERM LONDON PRIME MINISTER JOHN MAJOR SAID BRITAIN'S CURRENCY WON'T RETURN TO THE EUROPEAN EXCHANGE RATE MECHANISM OR ERM THIS YEAR AND SUGGESTED THAT THE SYSTEM COULD BE IMPROVED BY CONSIDERING SOME FORM OF RELATIONSHIP WITH THE DOLLAR AND THE YEN THE ERM IS INTENDED TO KEEP EUROPE'S MAJOR CURRENCIES WITHIN A SET TRADING RANGE MR MAJOR SAID THAT HE COULDN'T PREDICT WHEN STERLING MIGHT RETURN TO THE ERM WHICH IT LEFT ON SEPT 16 UNDER INTENSE SPECULATIVE PRESSURE BUT HE SAID THAT A RETURN IS CERTAINLY NOT IMMINENT AND THAT IMMINENT IS CERTAINLY NOT THIS YEAR HE SAID STERLING'S RETURN WILL HAVE TO WAIT UNTIL THERE IS MORE CONVERGENCE BETWEEN THE ECONOMIC POLICIES OF ITS ERM'S MEMBER STATES 9301040108 930104 WHO'S NEWS KMART CORP KMART CORP TROY MICH THOMAS W WATKINS FORMER SENIOR VICE PRESIDENT STORE OPERATIONS FOR US KMART STORES WAS NAMED TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT INTERNATIONAL OPERATIONS IN THE NEW POSITION THE 47YEAROLD MR WATKINS WILL OVERSEE THE STARTUP OF THE RETAIL CHAIN'S RECENTLY ANNOUNCED MEXICAN JOINT VENTURE WITH EL PUERTO DE LIVERPOOL AND ASSIST IN THE DEVELOPMENT AND IMPLEMENTATION OF KMART'S GLOBAL STRATEGY ADDITIONALLY 46YEAROLD FRANK B CARDINAL FORMERLY A KMART SOUTHERN REGIONAL MANAGER WAS NAMED MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF THE MEXICAN JOINT VENTURE 9301040107 930104 FOREST CITY ENTERPRISES PURCHASE CLEVELAND FOREST CITY ENTERPRISES INC SAID IT BOUGHT STAKES IN APARTMENT COMPLEXES IN ILLINOIS AND TEXAS IN TWO TRANSACTIONS VALUED AT 47 MILLION THE REAL ESTATE DEVELOPMENT AND MANAGEMENT CONCERN BOUGHT THE PAVILION A 1127UNIT APARTMENT COMPLEX IN CHICAGO FOR 32 MILLION FOREST CITY FORMED A JOINT VENTURE WITH HARRIS GROUP A CHICAGO INVESTMENT FIRM TO BUY THE COMPLEX FOREST CITY WILL OWN 475 OF THE VENTURE IN THE OTHER ACQUISITION FOREST CITY PURCHASED 1036 APARTMENT UNITS IN HOUSTON FOR 15 MILLION THE COMPANY BOUGHT THE APARTMENTS IN A JOINT VENTURE WITH A TAIWANESE INVESTOR WHO IS A PARTNER WITH FOREST CITY IN OTHER REAL ESTATE INVESTMENTS THOMAS G SMITH CHIEF FINANCIAL OFFICER SAID HE DIDN'T KNOW THE INVESTOR'S NAME FOREST CITY WILL OWN 20 OF THE PROPERTY BOTH TRANSACTIONS WERE FINANCED MOSTLY WITH BANK LOANS MR SMITH SAID 9301040106 930104 INTERNATIONAL SINGAPORE'S 1992 GDP ROSE 56 SINGAPORE SINGAPORE'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED BY THE NATION EXPANDED BY 56 LAST YEAR AND IS SET TO EXPAND BETWEEN 55 AND 65 THIS YEAR PRIME MINISTER GOH CHOK TONG SAID IN A NEW YEAR'S MESSAGE THE 1992 GROWTH FIGURE IS SLIGHTLY HIGHER THAN THE FORECAST BY THE MINISTRY OF TRADE AND INDUSTRY BUT WILL COME AS LITTLE SURPRISE TO ECONOMISTS THEY PREDICTED GROWTH WOULD SURPASS EARLIER 55 ESTIMATES AFTER NOVEMBER TRADE NUMBERS SHOWED CONTINUED VIGOROUS EXPANSION IN EXPORTS TO THE US AND MOST MAJOR MARKETS MR GOH ALSO ANNOUNCED PLANS TO TRIM PERSONAL AND CORPORATE TAX RATES OVER THE NEXT FIVE YEARS A MOVE THAT ECONOMISTS SAID WAS NECESSARY TO KEEP SINGAPORE COMPETITIVE WITH NEIGHBORING MALAYSIA AND TRADING COMPETITOR HONG KONG 9301040105 930104 FIRST FRANKLIN SETS BUYBACK CINCINNATI FIRST FRANKLIN CORP SAID IT WILL BUY AS MUCH AS 5 OF ITS SHARES OUTSTANDING OVER THE NEXT SIX MONTHS FIRST FRANKLIN A THRIFT HOLDING COMPANY WITH 2076 MILLION IN ASSETS HAS 578177 SHARES OUTSTANDING THE STOCK BUYBACK PLAN IS SUBJECT TO MARKET CONDITIONS AND OPERATING RESULTS 9301040104 930104 WHO'S NEWS LUXTEC CORP LUXTEC CORP WORCESTER MASS BERNARD CLARK 52 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER PAUL M SCHMITZ A 53YEAROLD BUSINESS CONSULTANT WHO HAS WORKED WITH LUXTEC IN THE PAST WAS NAMED ACTING PRESIDENT AND CHIEF EXECUTIVE MR CLARK STEPPED DOWN FOR PERSONAL REASONS SAID JOE CAMPBELL VICE PRESIDENT OF OPERATIONS MR CLARK COULDN'T BE REACHED TO COMMENT LUXTEC MAKES OPTICAL FIBER SYSTEMS FOR DOCTORS AND VETERINARIANS 9301040103 930104 TECHNOLOGY US COURT RULES AGAINST TARIFF ON JAPAN SCREENS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A FEDERAL COURT SIDING WITH COMPUTER MANUFACTURERS RULED THAT THE US INTERNATIONAL TRADE COMMISSION IMPROPERLY IMPOSED A STIFF TARIFF ON JAPANESEMADE DISPLAY SCREENS USED IN EXPENSIVE LAPTOP COMPUTERS BUT THE ONCECONTROVERSIAL ISSUE MAY SOON BE MOOT BECAUSE THE SOLE REMAINING US MAKER OF THE SCREENS RECENTLY ASKED THE COMMERCE DEPARTMENT TO ELIMINATE THE TARIFF BECAUSE OF CHANGED CIRCUMSTANCES IN 1991 US MAKERS OF CERTAIN COMPUTER DISPLAY SCREENS CONVINCED THE COMMERCE DEPARTMENT AND THE ITC THAT JAPANESE MAKERS WERE DUMPING THEIR PRODUCTS IN THE US OR SELLING THEM BELOW COST THE ITC AN INDEPENDENT AGENCY THAT IMPOSES TARIFFS IF IT FINDS THAT US COMPANIES ARE HURT BY DUMPING ORDERED A 627 TARIFF ON ACTIVEMATRIX LIQUID CRYSTAL DISPLAYS IT ALSO IMPOSED A 7 DUTY ON IMPORTED ELECTROLUMINESCENT DISPLAYS USED IN LARGER PORTABLE COMPUTERS SEVERAL US COMPUTER COMPANIES THAT BUY THE DISPLAYS INCLUDING APPLE COMPUTER CORP COMPAQ CORP INTERNATIONAL BUSINESS MACHINES CORP AND TANDY CORP OBJECTED TO THE ITC ACTION THEY SUED AS DID JAPANESE MANUFACTURERS THE US COURT OF INTERNATIONAL TRADE BASED IN NEW YORK CITY RULED LAST WEEK THAT THE ITC'S TARIFF ORDER WAS NOT SUPPORTED BY SUBSTANTIAL EVIDENCE AND WAS NOT IN ACCORDANCE WITH LAW BECAUSE THE COMMISSION HADN'T PROPERLY DEFINED THE INDUSTRY IN QUESTION THE COURT TOLD THE ITC TO RECONSIDER TWO MONTHS AGO GUARDIAN INDUSTRIES CORP OF NORTHVILLE MICH A COMPANY THAT CONTROLS THE ONLY MAKER OF ACTIVEMATRIX DISPLAYS OIS OPTICAL IMAGING SYSTEMS INC ASKED THE COMMERCE DEPARTMENT TO REVOKE THE TARIFF THE DEPARTMENT IS NOW SOLICITING PUBLIC COMMENT THE ITC LEVIES TARIFFS ONLY IN CASES WHERE A COMPANY HAS CONVINCED THE COMMERCE DEPARTMENT THAT DUMPING IS OCCURRING 9301040102 930104 NUMED HOME HEALTH PURCHASE INDEPENDENCE OHIO NUMED HOME HEALTH CARE INC AND NUMED TECHNOLOGIES INC CALLED A SPECIAL MEETING JAN 18 IN CLEVELAND FOR SHAREHOLDERS TO VOTE ON A MERGER OF THE TWO COMPANIES NUMED HOME HEALTH CARE IS OFFERING 25 OF ITS SHARES FOR EVERY SHARE OF NUMED TECHNOLOGIES IT ALREADY OWNS 34 OF NUMED TECHNOLOGIES NUMED HOME HEALTH CARE HAS STRUCTURED THE TRANSACTION SO THAT HITECH EXCHANGE INC A SUBSIDIARY WILL BUY NUMED TECHNOLOGIES 9301040101 930104 ROADWAY TO BUY CENTRAL FREIGHT AKRON OHIO ROADWAY SERVICES INC SAID IT AGREED DEFINITIVELY TO BUY CENTRAL FREIGHT LINES INC FOR 102 MILLION ROADWAY IS OFFERING 10450 FOR EACH SHARE OF CENTRAL WHICH IS BASED IN WACO TEXAS AND IS OWNED BY ITS EMPLOYEES THE DEAL STILL MUST BE APPROVED BY CENTRAL'S SHAREHOLDERS AND REGULATORS BUT ROADWAY OFFICIALS EXPECT TO CLOSE THE PURCHASE IN EARLY APRIL THE TWO TRUCKING COMPANIES AGREED IN PRINCIPLE TO MERGE THROUGH A ROADWAY SUBSIDIARY ON NOV 23 9301040100 930104 MONEY MARKET ASSETS FELL BY 1511 BILLION IN LATEST WEEKLY TALLY WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 1511 BILLION TO 56807 BILLION FROM 58318 BILLION FOR THE WEEK ENDED WEDNESDAY DEC 30 THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED DUE TO REPORTING ERRORS AND A CHANGE IN THE NUMBER OF FUNDS REPORTING ASSETS OF 614 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 355 BILLION TO 37874 BILLION THE TRADE GROUP SAID ASSETS OF 384 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 221 BILLION TO 30075 BILLION ASSETS OF 230 TAXEXEMPT FUNDS FELL BY 134 BILLION TO 7799 BILLION ASSETS OF THE 277 INSTITUTIONAL MONEY MARKET FUNDS DECREASED BY 1156 BILLION TO 18932 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 225 TAXABLE MONEY MARKET FUNDS FELL BY 866 BILLION TO 17045 BILLION ASSETS OF 52 TAXEXEMPT FUNDS FELL BY 290 MILLION TO 1887 BILLION 9301040099 930104 KSWISS SETS 4THPERIOD CHARGE CHATSWORTH CALIF KSWISS INC SAID IT WILL RECORD AN EXTRAORDINARY CHARGE OF 896000 OR 14 CENTS A SHARE FOR THE FOURTH QUARTER RELATED TO THE PREPAYMENT OF 10 MILLION OF SENIOR SUBORDINATED DEBT THE ATHLETICSHOE MAKER SAID THE EARLY PAYMENT WOULD SAVE THE COMPANY MORE THAN 16 MILLION IN INTEREST EXPENSE OVER THE NEXT THREE YEARS THE RETIRED DEBT PAYABLE TO AN INSURANCE COMPANY HAD AN INTEREST RATE OF ABOUT 137 THE COMPANY USED FUNDS FROM AN EXISTING CREDIT LINE WITH AN INTEREST RATE OF ABOUT 6 TO PAY DOWN THE SENIOR SUBORDINATED DEBT 9301040098 930104 SC JOHNSON CLOSES DRACKETT ACQUISITION FROM BRISTOLMYERS RACINE WIS SC JOHNSON & SON INC SAID IT COMPLETED ITS 115 BILLION ACQUISITION OF DRACKETT CO FROM BRISTOLMYERS SQUIBB CO JOHNSON ALSO SAID IT IS NEGOTIATING WITH SEVERAL IDENTIFIED POTENTIAL BUYERS FOR SEGMENTS OF DRACKETT WHICH MUST BE DIVESTED WITHIN A YEAR TO COMPLY WITH FEDERAL ANTITRUST LAWS THOSE BUSINESSES WHICH REPRESENT ABOUT 40 OF DRACKETT'S 600 MILLION IN ANNUAL SALES INCLUDE BEHOLD FURNITURE POLISH ENDUST CLEANING SPRAY AND RENUZIT AIR FRESHENERS ALL OF WHICH DUPLICATE ITEMS IN THE JOHNSON WAX INVENTORY JOHNSON AGREED TO A DIVESTITURE CONSENT DECREE WITH THE FEDERAL TRADE COMMISSION LAST WEEK DRACKETT BASED IN CINCINNATI IS A HOUSEHOLD PRODUCTS COMPANY WHOSE BRANDS INCLUDE WINDEX VANISH DRANO AND OCEDAR THE COMPANY EMPLOYS 1600 IN THE US AND CANADA BRISTOLMYERS SAID DRACKETT NO LONGER FIT ITS GROWTH STRATEGY FOR THE HEALTHCARE AND PERSONALCARE INDUSTRIES CLOSELY HELD JOHNSON SAID IT HAD SALES OF ABOUT 33 BILLION FOR THE YEAR ENDED JUNE 30 NEW YORKBASED BRISTOLMYERS REPORTED SALES OF 87 BILLION FOR THE NINE MONTHS ENDED SEPT 30 9301040097 930104 MR GASKET SELLS ASSETS CLEVELAND MR GASKET CO SAID IT SOLD ITS WHEEL AND TIRE GROUP TO AN INVESTMENT GROUP LED BY JAMES A HAGGERTY A FORMER MR GASKET CHIEF FINANCIAL OFFICER FOR ABOUT 12 MILLION THE COMPANY SAID THE TRANSACTION WILL PROVIDE IT WITH SOME OF THE FUNDS NECESSARY FOR IT TO MOVE FORWARD WITH ITS REORGANIZATION MR GASKET SAID THE INVESTMENT GROUP INTENDS TO CONTINUE MANUFACTURING AND MARKETING WHEEL PRODUCTS WITH THE SAME TRADE NAMES COMPANY OFFICIALS WEREN'T AVAILABLE TO PROVIDE MORE DETAILS 9301040096 930104 HUNTWAY IN PACT WITH LENDERS VALENCIA CALIF HUNTWAY PARTNERS LP SAID IT REACHED AN AGREEMENT WITH ITS BANK AND MORTGAGE NOTEHOLDERS UNDER WHICH THE LENDERS AGREED TO ADVANCE ADDITIONAL FUNDS TO HUNTWAY AS WELL AS DEFER PRINCIPAL AND INTEREST PAYMENTS HUNTWAY SAID IT AND ITS LENDERS CONTINUE TO WORK TOWARD LONGTERM RESTRUCTURING THE COMPANY LAST MONTH SAID IT WAS IN VIOLATION OF ITS CREDIT AGREEMENTS AND HAD BEGUN DISCUSSIONS WITH BANKERS TRUST NEW YORK CORP TO ADDRESS THE VIOLATIONS AND ITS LIQUIDITY PROBLEMS HUNTWAY ALSO SUSPENDED ITS CHIEF FINANCIAL OFFICER AFTER DISCLOSING THAT IT WAS INVESTIGATING IRREGULARITIES IN ITS FINANCIAL ACCOUNTS 9301040095 930104 INTERNATIONAL TAIWAN'S '92 INVESTMENT IN CHINA HONG KONG TAIWAN'S COMMITTED INVESTMENT IN CHINA IN 1992 IS EXPECTED TO HAVE EXCEEDED LAST DECADE'S TOTAL OF 342 BILLION ACCORDING TO THE CHINA DAILY FOR THE YEAR'S FIRST NINE MONTHS TAIWANESE INVESTORS ALREADY HAD PROMISED TO PUMP IN 3 BILLION IN THE MAINLAND UP 254 OVER THE CORRESPONDING PERIOD IN 1991 THE ENGLISHLANGUAGE DAILY QUOTED OFFICIALS FROM THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE AS SAYING DURING THE SAME 1992 PERIOD THE NUMBER OF PROJECTS INITIATED BY TAIWAN AND APPROVED BY CHINA ALSO SOARED 232 TO 3750 MINISTRY OFFICIALS SAID THEY ATTRIBUTED THE JUMP TO INCREASED CONFIDENCE OF TAIWANESE BUSINESSMEN IN THE MAINLAND'S ECONOMIC REFORMS UNLIKE IN THE PAST WHEN THE TAIWANESE CONCENTRATED ON SMALL TO MEDIUMSIZED AND LABORINTENSIVE INDUSTRIES THE NEW WAVE OF INVESTMENT WILL BE ENGAGED IN AEROSPACE COMPUTER BIOTECHNOLOGY AND PROPERTY DEVELOPMENT PROJECTS MINISTRY OFFICIALS SAID TAIWAN IS ALSO THE LEADING INVESTOR IN CHINA'S COASTAL FUJIAN PROVINCE 9301040094 930104 PEPPERAND SALT AND JOYS THAT STILL MAY BE PENDING WITH AN EARLIER KIDAGE VICE THEY HAVE TO SAY THINGS TWICE ACEUP SLEEVE BODYCARD 9301040093 930104 BUSINESS BRIEF SCHWINN BICYCLE CO AGREES TO ACQUISITION OFFER OF 408 MILLION CHICAGO SCHWINN BICYCLE CO WHICH IS IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS TENTATIVELY ACCEPTED A BUYOUT OFFER FROM ZELLCHILMARK FUND LP AND SCOTT USA THE 408 MILLION OFFER WHICH ALSO INCLUDES A PROVISION THAT WOULD ELIMINATE ABOUT 20 MILLION OF SCHWINN'S UNSECURED DEBT IS EXPECTED TO BE CONSIDERED BY CHICAGO US BANKRUPTCY JUDGE JACK B SCHMETTERER SOMETIME THIS MONTH THE TENTATIVE DEAL WAS ARRIVED AT THROUGH AN AUCTION TAKING PLACE UNDER THE AUSPICES OF THE BANKRUPTCY COURT IN ITS MOTION TO THE COURT SCHWINN ASKED THE JUDGE TO SET A HEARING DATE AT WHICH EITHER THE OFFER WOULD BE APPROVED OR COMPETING OFFERS WOULD BE CONSIDERED THESE OFFERS WOULD HAVE TO BE 10 BETTER THAN THE ZELLSCOTT OFFER TO BE CONSIDERED SAID ARNOLD DRATT SCHWINN'S FINANCIAL ADVISER SCHWINN A FAMED CHICAGO BICYCLE MANUFACTURER OWNED BY THE SCHWINN FAMILY TRUST ASKED JUDGE SCHMETTERER TO CONSIDER APPROVING THE DEAL BY JAN 19 SCOTT USA IS LOCATED IN KETCHUM IDAHO ZELLCHILMARK IS A CHICAGO INVESTMENT FIRM WHOSE BESTKNOWN PRINCIPAL IS SAM ZELL THE DEAL WHOSE TERMS HAVEN'T BEEN FULLY DISCLOSED INVOLVES ACQUISITION OF SCHWINN TRADEMARKS CUSTOMER LISTS CONTRACTS INVENTORY AND RECORDS IT DOESN'T HOWEVER INCLUDE THE COMPANY'S PLANT IN WATERFORD WIS ITS CHICAGO HEADQUARTERS OR ITS DISTRIBUTION CENTERS 9301040092 930104 3M SAYS CHARGES WILL OFFSET PAYMENT IN THE FOURTH PERIOD ST PAUL MINN MINNESOTA MINING & MANUFACTURING CO SAID ITS FOURTHQUARTER RESULTS WILL INCLUDE A 129 MILLION PAYMENT FROM JOHNSON & JOHNSON THAT SETTLES A PATENT CASE BUT THE BENEFIT WILL BE LARGELY OFFSET BY 115 MILLION IN PRETAX CHARGES THE COMBINED CHARGES AND SPECIAL PAYMENT WILL RESULT IN A BOOST TO FOURTHQUARTER NET INCOME OF ABOUT 9 MILLION OR FOUR CENTS A SHARE 3M SAID IN THE YEARAGO QUARTER THE COMPANY REPORTED NET OF 259 MILLION OR 118 A SHARE ON SALES OF 322 BILLION IN LATE NEW YORK STOCK EXCHANGE TRADING THURSDAY 3M SHARES CLOSED UP 75 CENTS AT 101125 9301040091 930104 AMERICA WEST PARES WINTER TICKET PRICES BY AS MUCH AS A THIRD PHOENIX AMERICA WEST AIRLINES LOOKING TO FILL SEATS DURING A TRADITIONALLY SLUGGISH TRAVEL PERIOD SAID IT WOULD LOP AS MUCH AS ONETHIRD OFF WINTER FARES THE CARRIER STRUGGLING TO EMERGE FROM BANKRUPTCY PROCEEDINGS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SAID THE PRICE REDUCTIONS APPLY TO TICKETS PURCHASED BY JAN 21 FOR TRAVEL THROUGH MARCH 10 THE NONREFUNDABLE TICKETS CARRY CERTAIN RESTRICTIONS AND REQUIREMENTS INCLUDING A SEVENDAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY THE DEEPEST DISCOUNT IS AVAILABLE FOR TRAVEL ON TUESDAYS WEDNESDAYS AND SATURDAYS WITH FARES SLIGHTLY HIGHER ON OTHER DAYS AMERICA WEST SAID THE SALE REDUCES AMERICA WEST'S LOS ANGELESNEW YORK ROUNDTRIP FARE BY 30 TO 368 FROM 530 THAT PRICE IS FOR OFFPEAK TRAVEL AMERICA WEST'S MOVE IN ESSENCE EXTENDS THE AVAILABILITY OF BARGAIN FARES FROM THE CARRIER AN EARLIER WINTERFARE SALE HAD BEEN SET TO EXPIRE TODAY GENERALLY OTHER CARRIERS HAVE MATCHED AMERICA WEST ON ROUTES WHERE COMPETITION IS HEATED AS A WHOLE THE INDUSTRY HAS SHOWN RENEWED DETERMINATION LATELY TO MOVE TICKET PRICES HIGHER A ROUND OF FARE INCREASES WERE ANNOUNCED JUST BEFORE CHRISTMAS 9301040090 930104 MARKETING & MEDIA NOTED COMIC VENTURE PLUGGERS A NEW COMIC STRIP PARTLY BANKROLLED BY OUSTED TIME WARNER INC COCHIEF EXECUTIVE NICHOLAS J NICHOLAS IS SET TO APPEAR TODAY IN SOME 80 NEWSPAPERS WITH COMBINED CIRCULATION OF 18 MILLION INDUSTRY OFFICIALS CALLED THE ROLL OUT OF PLUGGERS A SINGLEPANEL STRIP THAT WILL APPEAR DAILY ONE OF THE MOST SUCCESSFUL EVER OF A NEWSPAPER COMIC STRIP PLUGGERS IS THE HANDIWORK OF CARTOONIST JEFF MACNELLY CREATOR OF THE COMIC STRIP SHOE AND ONE OF FOUR OF MR NICHOLAS'S PARTNERS IN THE VENTURE IN A SEPARATE DEVELOPMENT PLUGGERS INC THE COMIC STRIP'S CORPORATE PARENT RECENTLY REACHED AN AGREEMENT WITH BRADFORD LICENSING ASSOCIATES TO SELL LICENSING AND MERCHANDISING RIGHTS TO PLUGGERS MR NICHOLAS SAID PLUGGERS IS MR NICHOLAS'S FIRST BUSINESS ENDEAVOR SINCE HE WAS OUSTED LAST MARCH IN A CORPORATE COUP AT TIME WARNER THE GIANT ENTERTAINMENT AND PUBLISHING COMPANY 9301040089 930104 KODAK SALE TO BRACE ROCHESTER NY EASTMAN KODAK CO SAID IT AGREED TO SELL ITS CENTER FOR CREATIVE IMAGING WHICH OFFERS COURSES IN COMPUTER IMAGING TO BRACE MANAGEMENT GROUP TERMS WEREN'T DISCLOSED THE AGREEMENT IS PART OF EASTMAN KODAK'S PUSH TO SHED OPERATIONS UNRELATED TO ITS CORE BUSINESSES THE CENTER IN CAMDEN MAINE OFFERS COURSES FOR PROFESSIONAL PHOTOGRAPHERS ARCHITECTS DESIGNERS AND GRAPHIC ARTISTS AMONG OTHERS BRACE ALSO BASED IN CAMDEN IS A PRIVATELY HELD FIRM THAT MANAGES SEVERAL CONCERNS INCLUDING IMAGETECH PUBLICATIONS WHICH PUBLISHES A MAGAZINE FOR USERS OF COMPUTER GRAPHICS 9301040088 930104 TREASURY SLATES SALE OF BILLS WASHINGTON THE TREASURY PLANS TO RAISE 19 BILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1475 BILLION OF 52WEEK BILLS TO REDEEM 1284 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794H49 THE BILLS WILL BE DATED JAN 14 AND WILL MATURE JAN 13 1994 THEY WILL BE AVAILABLE IN MINIMUM 10000 DENOMINATIONS NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EST AND COMPETITIVE TENDERS BY 1 PM THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES 9301040087 930104 GLOBAL VIEW COME TO EUROPE A LAND OF OPPORTUNITIES BY GEORGE MELLOAN ON A PRECHRISTMAS AUTO TOUR OF NORTHERN EUROPE MY WIFE AND I SCOOTED ACROSS NATIONAL BORDERS EIGHT TIMES AT FIVE CROSSINGS HARDLY ANY EVIDENCE OF A BORDER EXISTED SWEDEN AND NORWAY HAD NO INTEREST IN OUR PASSAGE FROM ONE TO THE OTHER RUNNING WITH THE 80 MPH TRAFFIC ON GERMANY'S A2 AUTOBAHN WE WERE SUDDENLY AWARE THAT WE HAD RACED INTO HOLLAND AND NONE OF OUR FELLOW GRAND PRIX CANDIDATES HAD DROPPED A SINGLE RPM THE OLD BORDER POSTS WERE DESERTED AS THEY WERE WHEN WE CRUISED INTO BELGIUM A SHORT WHILE LATER WITH MEMORIES STILL FRESH IN OUR MINDS OF WAITING IN LINES SCROUNGING UP VISAS AND RUNNING THE GAUNTLET OF EAST GERMAN POLIZEI ON THE BERLIN CORRIDOR THIS ABILITY TO CROSS BORDERS SO EASILY IMPRESSED US IT REMINDED US THAT AS THE YEAR 1993 BEGINS AND DESPITE ALL THE SETBACKS OF 1992 EUROPE STILL IS MARCHING IN WHAT HERE WOULD BE CALLED A LIBERAL DIRECTION GOVERNMENT STRICTURES AND CONTROLS PARTICULARLY WITH REGARD TO THE MOBILITY OF ORDINARY INDIVIDUALS CONTINUE TO MELT AWAY EVIDENCES OF THE HIDEOUS GERMAN WALL OF SUCH RECENT MEMORY HAVE NEARLY VANISHED DUTCH AND GERMANS RACING THEIR BMWS AND VOLKSWAGENS ACROSS THEIR COMMON BORDER ON A SUNNY WINTER AFTERNOON ARE SYMBOLS OF A LIBERATION IN WESTERN EUROPE THAT MATCHES THE POSTCOLD WAR OPENING OF THE EAST EUROPE'S CLASSICAL LIBERALISM HAS THE OPPOSITE MEANING OF THE ONE COMMON IN AMERICA WHERE IT OFTEN IS A SYNONYM FOR STATISM IN EUROPE TODAY A FLIGHT FROM STATISM CAN BE SEEN ON EVERY HAND SWEDEN IS MODIFYING ITS WELFARE STATE ITALY PLANS TO SELL OFF STATE COMPANIES LABOUR FAILED IN ITS COMEBACK BID IN THE UNITED KINGDOM FRANCE'S SOCIALIST REGIME IS TOTTERING IT HARDLY NEEDS MENTIONING THAT FORMER SOVIET REPUBLICS AND CENTRAL EUROPEAN NATIONS ARE TRYING TO BUILD MARKET ECONOMIES ON THE WRECKAGE OF STATIST ECONOMIC SYSTEMS AMERICA BY CONTRAST IS MOVING IN A LIBERAL DIRECTION TOO BUT ONLY BY AMERICAN DEFINITION AN INTERVENTIONIST POLICY TEAM ASSEMBLED BY BILL CLINTON IS PREPARING TO ASSUME POSITIONS OF POWER TRANSPORTATION REREGULATION NEW ENVIRONMENTAL RULES HIGHER TAXES AND PROTECTIONIST INDUSTRIAL POLICY ARE PRIORITIES OF VARIOUS MEMBERS ALTHOUGH IT IS NOT CLEAR WHAT MR CLINTON HIMSELF THINKS IF THESE SIGNALS ARE TAKEN AT FACE VALUE EUROPE HAS THE BRIGHTER FUTURE LIBERALISM AS EUROPE DEFINES IT HAS PRODUCED RAPID ECONOMIC GROWTH ON BOTH CONTINENTS WHEN IT HAS BEEN APPLIED IN THE US IT WAS EMPLOYED BY RONALD REAGAN IN THE 1980S WITH ECONOMIC DEREGULATION AND A REDUCTION OF TAX BURDENS IN EUROPE IT GAVE BIRTH TO THE 1986 SINGLE MARKET ACT WHICH ACCELERATED THE PROCESS OF REMOVING BARRIERS TO THE FREE MOVEMENT OF CAPITAL PEOPLE AND GOODS BY 1990 THE EUROPEAN COMMUNITY WAS ENJOYING UNPRECEDENTED PROSPERITY TO BE SURE THE SHORTTERM OUTLOOK CONTRADICTS THIS THESIS THE EC IS SKATING ON THE EDGE OF A COMMUNITYWIDE RECESSION WHILE ECONOMIC INDICATORS IN THE US SIGNAL RECOVERY THE CONCEPT OF EUROPE AS A NEW SUPERPOWER HAS BEEN MUCH DIMINISHED AS EUROPEANS HAVE GIVEN THE MAASTRICHT TREATY FOR POLITICAL AND MONETARY UNITY A COLD RECEPTION YUGOSLAVIA HAS DEMONSTRATED THAT THE COLLAPSE OF OLD AUTHORITARIAN REGIMES HAS ITS DARK SIDE GERMANY HAS FOUND IT HARDER AND CERTAINLY MORE EXPENSIVE THAN IMAGINED TO INTEGRATE EAST GERMANS INTO THE LARGER ECONOMY AND SOCIETY EUROPE'S LEADERS THOUGHT THE MAGIC YEAR 1992 WOULD END UP WITH A BANG BUT IT INSTEAD ENDED WITH A WHIMPER BUT THESE CIRCUMSTANCES ARE TEMPORAL HAD EUROPE BEEN LESS SELFCONFIDENT IN 1990 THERE WOULD BE LESS DISAPPOINTMENT NOW THE FUNDAMENTAL POINT IS THAT EUROPE'S MARCH TOWARD A SINGLE MARKET HOWEVER SHORT OF EXPECTATIONS CONTINUES EUROPEANS MAY BE SUSPICIOUS OF MAASTRICHT'S POLITICAL UNITY BUT THEY LIKE THE SINGLE MARKET FARMER PROTESTS AND SKINHEAD ATTACKS ON IMMIGRANTS NOTWITHSTANDING THE FUNDAMENTAL IMPULSE IN EUROPE IS TOWARD FURTHER LIBERALIZATION OF COMMERCE THE NECESSITY OF INTEGRATING THE FORMER WARSAW PACT NATIONS OF CENTRAL EUROPE INTO THE BROADER EUROPEAN ECONOMIC SYSTEM IS RECOGNIZED INTELLECTUALLY EVEN IF THERE ARE THE USUAL PROTECTIONIST BARRIERS TO IMPLEMENTATION EUROPEAN MULTINATIONAL CORPORATIONS WHICH HAVE LED THE ENTIRE MOVEMENT TOWARD A SINGLE MARKET IN EUROPE'S WEST ARE PARTICULARLY AWARE OF THE ENORMOUS POTENTIAL IN MARKET GROWTH OF FURTHER ECONOMIC INTEGRATION WITH THE EAST LOOKING AT EUROPE FROM IRELAND'S DINGLE BAY TO THE RUSSIAN URALS ONE SEES A CONTINENT ABOUT EQUALLY DIVIDED BETWEEN HAVE AND HAVE NOT NATIONS WITH SOMETHING OVER 700 MILLION PEOPLE IN ALL A JAGGED LINE DRAWN DOWN THE POLISHGERMAN BORDER FROM THE BALTIC AND FURTHER SOUTHWARD TO TRIESTE ON THE ADRIATIC DIVIDES RICH AND POOR EUROPE INTO TWO HALVES BOTH SIDES OF THAT LINE ARE GOING TO HAVE THEIR OWN PROBLEMS BUT IN THE POSTCOLD WAR ERA MILLIONS OF PERSONTOPERSON CONTACTS ARE TAKING PLACE ACROSS THAT DIVIDE AS INDIVIDUALS ON BOTH SIDES SEEK MARKETS AND OPPORTUNITIES THE PEOPLE OF THE EASTERN NATIONS FOR ALL THE REPRESSION THEY HAVE ENDURED ARE RELATIVELY WELL EDUCATED AND ABLEBODIED THERE IS A NATURAL SYNERGY BETWEEN THE ADVANCED MANUFACTURING CAPABILITIES OF THE WEST AND THE POTENTIAL FOR THE EAST TO EXPLOIT ITS WEALTH OF HUMAN AND NATURAL RESOURCES IN BOTH HALVES OF EUROPE THE IMPORTANT THING IS TO PRESERVE THE LIBERAL IMPULSES THAT EXIST TODAY IN RUSSIA THOSE IMPULSES ARE RESULTING IN AN AD HOC DEVOLUTION OF POWER AS CITIES AND REGIONS ASSUME MORE RESPONSIBILITIES OF GOVERNMENT AND AS THE NEW BUSINESSMEN LEARN TO OVERCOME OR IGNORE THE ROADBLOCKS THAT RESIDUAL BUREAUCRACIES PUT IN THEIR PATHS IN WESTERN EUROPE THE IMPERATIVE IS TO EXTEND EASTWARD THE LIBERALISM THAT GAVE BIRTH TO THE SINGLE MARKET THUS HELPING THE PEOPLE OF THE EAST LEARN FROM THE WESTERN EXPERIENCE AND ENJOY ITS FRUITS THAT MEANS THAT EUROPEAN STATES SINGLY IN THE EC AND IN THE EXPANDED EUROPEAN ECONOMIC AREA MUST DO WHAT RUSSIA AND THE EAST MUST DO AS WELL CONTINUE TO REMOVE BARRIERS TO THE EXERCISE OF HUMAN CREATIVITY AND INITIATIVE CAN AMERICA ASSIST THIS PROCESS OF COURSE IT CAN BUT THE TRUTH OF THAT LIES IN UNDERSTANDING WHAT AMERICA REALLY IS RATHER THAN WHAT IT IS SO OFTEN DEPICTED AS BEING IT IS A NATION OF 250 MILLION INDIVIDUALS A GOOD MANY OF THEM FAR MORE IMAGINATIVE AND CREATIVE THAN THOSE WHO WILL HOLD HIGH POSTS IN A NEW AMERICAN GOVERNMENT THEY WILL NOT MARCH IN LOCKSTEP TO THE DICTATES OF WASHINGTON ANY MORE THAN EUROPE HAS MARCHED TO ALL THE DICTATES OF BRUSSELS LIBERALISM IN THE EUROPEAN SENSE IS A POWERFUL FORCE AND WILL REMAIN SO ON BOTH SIDES OF THE ATLANTIC WHATEVER THE POLITICAL TENDANCIES OF THE MOMENT MIGHT BE 9301040086 930104 CREDIT MARKETS DUTCH AUCTIONS APPEAR TO BE MIXED BLESSING FOR US BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TREASURY'S YEARLONG TEST OF A NEW WAY TO SELL DEBT APPEARS TO HAVE SUCCEEDED IN CURBING THE GOVERNMENT'S BORROWING COSTS ON 60 BILLION OF TWOYEAR NOTES SOLD AT THE FOUR LATEST MONTHLY AUCTIONS BUT WILL THIS DUTCH AUCTION EXPERIMENT SWEEP THROUGH THE CREDIT MARKETS AND QUICKLY BE EXPANDED TO LONGERTERM BONDS PROBABLY NOT INVESTORS SAY THE EXPERIMENT SEEMS TO BE SHAPING UP AS A MIXED BLESSING FOR THE GOVERNMENT SAVING IT MONEY ON TWOYEAR NOTES BUT PERHAPS COSTING IT MONEY IN AUCTIONS OF FIVEYEAR NOTES AND WITH FOUR AUCTIONS OF EACH SECURITY UNDER THEIR BELTS IT APPEARS THAT BOND DEALERS ARE STILL STRUGGLING TO ADJUST THEIR AUCTION BIDDING STRATEGIES TO GET THE BEST POSSIBLE PRICES ACCORDING TO JOHN P COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP THE DUTCH AUCTION HAS AT LEAST BROADENED THE LEVEL OF PARTICIPATION IN THE TWOYEAR AUCTION MOREOVER ALL FOUR TWOYEAR NOTE AUCTIONS HAVE BEEN SUCCESSFUL AND HAVE BEEN EXACTLY WHAT THE TREASURY WANTED THEM TO BE SAYS JAMES KENNEY HEAD OF GOVERNMENT TRADING AT PRUDENTIAL SECURITIES INC MORE PEOPLE ARE PARTICIPATING AND MORE AGGRESSIVELY THAN UNDER THE OLD SYSTEM THAT WAS WHAT THE GOVERNMENT HOPED WHEN IT BEGAN THE EXPERIMENT SPURRED ON BY THE SALOMON BROTHERS AUCTION BIDDING SCANDAL OF 1991 THE IDEA WAS TO CURB FEDERAL INTEREST EXPENSE AND DETER COLLUSIVE BIDDING ACTIVITY IN BOTH DUTCH AND REGULAR AUCTIONS INVESTORS SUBMIT A VARIETY OF BIDS STARTING WITH THE BID MOST FAVORABLE TO THE GOVERNMENT NAMELY THE ONE WITH THE LOWEST YIELD THE TREASURY THEN HANDS OUT SECURITIES TO ONE BIDDER AFTER ANOTHER UNTIL IT HAS SOLD THE DESIRED AMOUNT OF DEBT WHAT'S UNUSUAL IN A DUTCH AUCTION IS THAT WINNING BIDDERS ULTIMATELY RECEIVE ALL THEIR SECURITIES AT THE SAME PRICE THAT IS AT THE HIGHEST ACCEPTED YIELD BY CONTRAST WINNERS AT A REGULAR AUCTION ARE STUCK WITH THE PRECISE BID THEY MADE THIS IS THE LONGLAMENTED WINNER'S CURSE ONE WINNING INVESTOR CAN WIND UP RECEIVING A LOWER YIELD ON THE SAME SECURITY THAN ANOTHER INVESTOR WHOSE BID WAS LESS FAVORABLE TO THE GOVERNMENT THE TREASURY HOPED THAT BANISHING THE WINNER'S CURSE THROUGH A DUTCH AUCTION WOULD ENCOURAGE MORE BIDDERS TO OFFER HIGHER PRICES FOR TREASURYS AND MR KENNEY SAYS HE IS IN FACT SEEING STRONGER BIDDING INTEREST FROM CUSTOMERS WHO WOULD NORMALLY HAVE BOUGHT TWOYEAR NOTES NONCOMPETITIVELY THAT IS THEY WOULD HAVE AGREED TO BUY A SMALL AMOUNT OF TREASURYS AT THE AVERAGE ACCEPTED PRICE OF ALL BIDS DUTCH AUCTIONS COULD CURB THE INCENTIVE TO GO THE NONCOMPETITIVE ROUTE BECAUSE THE WINNER'S CURSE AT THE AUCTION HAS BEEN ELIMINATED PRIMARY DEALERS WHO BID AT TREASURY AUCTIONS STILL ARE STRUGGLING TO UNDERSTAND HOW TO APPROACH THE DUTCH AUCTION THOUGH THEY HAVE LEARNED SOME IMPORTANT LESSONS JOEL KAZIS HEAD OF GOVERNMENT TRADING AT UBS SECURITIES A UNIT OF UNION BANK OF SWITZERLAND SAYS THE HARDEST PART IS ADVISING CLIENTS ON HOW TO BUY THE DUTCH AUCTIONS HAVE BEEN VERY DIFFICULT TO GAUGE SAYS MR KAZIS THE AUCTION OF THE FIVEYEAR NOTE ISN'T SO HARD BUT THE TWOYEAR NOTE IS REALLY CHALLENGING LOUIS CRANDALL CHIEF ECONOMIST AT RH WRIGHTSON & ASSOCIATES INC SAYS OF THE DUTCH AUCTION METHOD GENERALLY SPEAKING IT HAS PRODUCED MUCH BETTER RESULTS FOR THE TWOYEAR NOTE THAN FOR THE FIVEYEAR NOTE IN THE TWOYEAR AUCTIONS MORE THAN HALF THE ACCEPTED BIDS TENDED TO BE CONCENTRATED AT JUST TWO OR THREE LEVELS NOT FAR FROM THE ACCEPTED YIELD THIS SUGGESTS STRONG DEMAND AND AGGRESSIVE BIDDING BUT FOR THE FIVEYEAR PRICES HAVE BEEN SPREAD OVER FIVE OR SIX LEVELS MAKING MR CRANDALL WONDER WHAT WOULD HAPPEN WITH LONGER MATURITIES THAT ARE MORE THINLY TRADED MORE THAN 40 BILLION OF FIVEYEAR TREASURY NOTES HAVE BEEN SOLD SINCE SEPTEMBER AS PART OF THE EXPERIMENT THEY MET A DIFFERENT FATE THAN THE TWOYEAR NOTES IN PART BECAUSE THE TWOYEAR MARKET IS MUCH LARGER AND IS MORE APPEALING TO INDIVIDUAL INVESTORS BECAUSE OF THE LOWER RISK IN SHORTERTERM SECURITIES ONE WAY TO GAUGE DEMAND AT DUTCH AUCTIONS IS TO COMPARE THE YIELD IN THE WHENISSUED MARKET SHORTLY BEFORE THE AUCTION WITH THE YIELD ACTUALLY ACCEPTED AT THE AUCTION NOTE AND BOND YIELDS MOVE IN THE OPPOSITE DIRECTION OF PRICES FOR THE TWOYEAR NOTE ACCORDING TO DATA FROM THE TREASURY MARKET CONSULTING FIRM RIED THUNBERG & CO THE PREAUCTION YIELD ON ALL FOUR OCCASIONS HAS BEEN HIGHER THAN THE YIELD ULTIMATELY ACCEPTED AT AUCTION ANALYSTS SAY THIS SHOWS THAT DEALERS ARE PAYING HIGHER PRICES AT THE AUCTION THAN THEY EXPECTED IT ALSO SUGGESTS THAT THE TREASURY IS HOLDING DOWN BORROWING COSTS FOR THE FIVEYEAR NOTE HOWEVER IN ALL BUT ONE CASE THE PREAUCTION YIELD WAS BELOW THE AUCTION YIELD NOTE PRICES WERE LOWER AT THE AUCTION THAN MANY DEALERS EXPECTED DEALERS MAY HAVE SAVED MONEY AT THE TREASURY'S EXPENSE BUT THE PRICE GAPS TENDED TO BE SMALLER THAN IN THE TWOYEAR AUCTIONS SUGGESTING THAT THE TREASURY HAS LOST RELATIVELY LESS MONEY ON THE FIVEYEAR NOTE AUCTIONS THAN IT HAS SAVED ON THE TWOYEAR NOTES ONE MAJOR CHANGE IN DEALER STRATEGY HAS BEEN A GREATER WILLINGNESS TO BUY NOTES IN THE WHENISSUED MARKET ESPECIALLY TWOYEAR NOTES PEOPLE WHO PURCHASE IN THE PREAUCTION MARKET ARE GETTING THE SECURITIES FOR LESS THAN WHAT SUCCESSFUL AUCTION BIDDERS PAY A LOT OF PEOPLE ARE SERIOUSLY THINKING THAT THEY SHOULD BUY IN THE WHENISSUED MARKET SAYS MR KENNEY IN ALL FOUR AUCTIONS OF TWOYEAR NOTES THE CHEAPEST TRADE HAS BEEN IN THAT MARKET DEALERS ARE ALSO LESS WILLING TO SHORT SELL THE TWOYEAR NOTE UNDER THE DUTCH AUCTION METHOD THAN UNDER THE OLDER METHOD A DEALER DOES THIS BY SELLING A BORROWED SECURITY IN THE HOPE THAT HE WILL BE ABLE TO REPLACE IT LATER AT A LOWER PRICE AND THUS REAP A PROFIT BUT PRICES HAVE TENDED TO RISE AFTER THE TWOYEAR NOTE AUCTIONS HANDING DEALERS LOSSES AS THEY SCRAMBLE TO BUY REPLACEMENTS FOR BORROWED SECURITIES AT HIGHER PRICES THAN THEY HAD SOLD THEM FOR ACCORDING TO MR COSTAS OF FIRST BOSTON PERHAPS THE STRATEGY NOW IN THE TWOYEAR NOTE AUCTION IS NEVER TO SET UP SHORT BEFORE THE AUCTION TRADITIONAL DEALERS USED TO SET UP SHORTS AND BOUGHT AFTERWARDS AND NOW THEY JUST BUY AT THE AUCTION THE DUTCH AUCTION ALSO SEEMS TO REDUCE THE PANICKY SELLING THAT OFTEN FOLLOWED A WEAK AUCTION UNDER THE OLD METHOD WHEN DEALERS RUSH TO UNLOAD SECURITIES THEY PURCHASED AT PRICES NEAR THE HIGHESTACCEPTED PRICE SAYS MR CRANDALL THE DUTCH AUCTION REWARDS ALL SUCCESSFUL BIDDERS AT THE SAME PRICE AND INTEREST RATE THUS DIMINISHING THE INCENTIVE TO BAIL OUT FAST AFTER A LACKLUSTER AUCTION AT A WEAK AUCTION UNDER THE OLD RULES THOSE WHO BID MORE THAN OTHER BUYERS WOULD BE LOSING MONEY AS TIME WENT ON SAYS MR CRANDALL THEY WOULD HAVE STARTED OUT UNDERWATER AND BEGUN SINKING FAST THAT'S WHY A BAD AUCTION HAD A POTENTIAL TO HURT THE MARKET MARKET VETERANS SAY THAT DUTCH AUCTIONS MIGHT FUNCTION QUITE DIFFERENTLY IN A MARKET WHERE DEMAND IS LESS STRONG THAN TODAY'S ACCORDING TO MEAD L BRIGGS HEAD OF GOVERNMENT TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC THE DUTCH AUCTION METHOD COULD EXAGGERATE SENTIMENT MAKING A STRONG MARKET SEEM STRONGER AND A WEAK ONE WEAKER THE DUTCH AUCTION STILL HAS MANY CRITICS ACCORDING TO MICHAEL BASHAM A FORMER TREASURY OFFICIAL AND NOW A MANAGING DIRECTOR AT SMITH BARNEY HARRIS UPHAM & CO THE SIMPLE FACT OF THE MATTER IS THAT THE TREASURY MARKET IS A VERY VERY EFFICIENT MECHANISM IT'S ONE OF THE MOST EFFICIENT MARKETS IN THE WORLD MR BASHAM SAYS THAT INTEREST RATES ON THE TREASURY'S NOTES AND BONDS HAVE LESS TO DO WITH HOW THEY'RE SOLD THAN WITH DEMAND I'M NOT CONVINCED THAT THE EVIDENCE WE'VE SEEN SHOWS THAT YOU CAN SOMEHOW HOODWINK DEALERS TO PAY ONE MORE DIME FOR THESE SECURITIES LAWRENCE N LEUZZI MANAGING DIRECTOR OF FIXED INCOME AT SG WARBURG & CO SAYS HE ISN'T FAZED YET WE'VE ONLY GOT A HANDFUL OF EXPERIENCES TO DRAW FROM HE SAYS BUT SO FAR THE EXPERIMENT IS GOING WELL NOTE AND BOND PRICES FELL IN VERY LIGHT TRADING ON THE LAST DAY OF THE YEAR THE TREASURY'S BENCHMARK 30YEAR BOND DROPPED 1/4 POINT TO 102 21/32 FOR A YIELD OF 740 UP FROM 737 ON WEDNESDAY THE 10YEAR NOTE DROPPED 1/8 POINT TO 97 24/32 FOR A YIELD OF 668 UP FROM 666 THE FIVEYEAR NOTE DROPPED 7/32 TO 99 26/32 FOR A YIELD OF 603 UP FROM 598 THE TWOYEAR NOTE DROPPED 3/32 TO 100 3/32 FOR A YIELD OF 456 UP FROM 451 DESPITE A ROLLERCOASTER YEAR YIELDS IN 1992 ENDED REMARKABLY LITTLE CHANGED FROM THE END OF 1991 ON DEC 31 1991 THE LONGTERM BOND YIELDED 739 THE 10YEAR NOTE WAS AT 671 THE FIVEYEAR NOTE YIELDED 592 AND THE TWOYEAR NOTE STOOD AT 476 TRADERS THURSDAY REACTED TO THE LABOR DEPARTMENT'S REPORT THAT INITIAL JOBLESS CLAIMS PLUNGED 28000 TO 332000 IN THE WEEK ENDED DEC 12 THAT PUSHED DOWN THE WIDELY WATCHED FOURWEEK MOVING AVERAGE OF CLAIMS TO 341250 THE LOWEST LEVEL IN MORE THAN THREE YEARS LATE THURSDAY AFTER THE MARKETS HAD CLOSED FOR THE NEW YEAR'S HOLIDAY THE FEDERAL RESERVE RELEASED ITS WEEKLY MONEY SUPPLY FIGURES FOR THE WEEK ENDED DEC 21 THE DATA SHOWED THAT THE CLOSELY WATCHED M2 AGGREGATE HAD FALLEN 78 BILLION TO POST AN ANNUAL GROWTH RATE OF 22 BELOW THE FED'S TARGET RANGE OF 25 TO 65 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 IN ALL FOUR RECENT DUTCH AUCTIONS OF TWOYEAR TREASURY NOTES THE ACCEPTED YIELD AT THE AUCTION DECLINED FROM THE MARKET JUST MOMENTS EARLIER BUT FOR FIVEYEAR NOTES AUCTION YIELDS GENERALLY ROSE 9301040085 930104 WHO'S NEWS SOUTHLAND CORP SAYS JOE THOMPSON JR QUIT AS A DIRECTOR OF FIRM DALLAS JOE C THOMPSON JR A MEMBER OF THE FAMILY THAT FOUNDED SOUTHLAND CORP RESIGNED AS A DIRECTOR OF THE CONVENIENCE STORE CHAIN THE COMPANY SAID MR THOMPSON THE 52YEAROLD CHAIRMAN OF SIGEL LIQUOR STORES INC COULDN'T BE REACHED FOR COMMENT BUT A SOUTHLAND SPOKESWOMAN SAID THAT HE RESIGNED TO PURSUE OTHER BUSINESS INTERESTS MR THOMPSON'S SEAT ON THE BOARD WON'T BE FILLED THE SPOKESWOMAN SAID INSTEAD THE BOARD IS EXPECTED TO VOTE TO DECREASE ITS SIZE TO 14 MEMBERS FROM 15 AT ITS MEETING THIS MONTH MR THOMPSON'S BROTHERS JERE AND JOHN REMAIN ON THE BOARD THE THOMPSONS' FATHER FOUNDED THE COMPANY AS AN ICE STORE IN 1927 AND IT GREW TO BE THE NATION'S LARGEST CHAIN OF CONVENIENCE STORES BUT TO AVERT A POSSIBLE HOSTILE TAKEOVER MR THOMPSON AND HIS BROTHERS TOOK THE COMPANY PRIVATE IN A 49 BILLION LEVERAGED BUYOUT IN 1987 BURDENED BY HIGHCOST DEBT THE COMPANY TUMBLED INTO A BANKRUPTCYCOURT REORGANIZATION IN 1990 WHEN THE COMPANY EMERGED IN 1991 THE THOMPSON FAMILY HAD LOST CONTROL OF THE CHAIN HOLDING JUST 21 MILLION SHARES OR 5 OF ITS COMMON STOCK OUTSTANDING SOUTHLAND'S JAPANESE PARTNERS ITOYOKADO CO ACQUIRED 70 OF THE COMPANY'S STOCK FOR 430 MILLION 9301040084 930104 MARKETING & MEDIA CONCERT BUSINESS CLIMBED ABOVE '91 BUT FAILED TO TOP '90 EVEN NO 1 GROUP U2 FACED EMPTY SEATS AS RECESSION TURNED DEAF EAR TO SALES BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BIGNAME ROCK BANDS SUCH AS GUNS N' ROSES AND U2 BOOSTED THE AILING CONCERT BUSINESS IN 1992 EVEN SO THE RECESSION KEPT GROSS TICKET SALES BELOW 1990'S RECORD ALTHOUGH TRADE MAGAZINES FOR THE CONCERT BUSINESS RELEASED CONFLICTING LISTS OF THE YEAR'S TOPGROSSING ACTS ALL AGREE ON WHO RANKED NO 1 IRISH ROCK BAND U2 MEETING PENTUP DEMAND AFTER FIVE YEARS WITHOUT TOURING THE BAND'S SPLASHY HIGHTECH ZOO TV TOUR PACKED IN FANS U2 GROSSED NEARLY 68 MILLION DURING THEIR US TOUR COVERING ABOUT 75 CONCERTS WHILE U2'S BOXOFFICE TAKE WAS IMPRESSIVE THEIR 68 MILLION WAS WELL BELOW THE RECORDBREAKING 98 MILLION PULLED IN BY THE ROLLING STONES' STEEL WHEELS TOUR IN 1989 AND IN 1990 NEW KIDS ON THE BLOCK GENERATED 74 MILLION IN GROSS SALES VIRTUALLY EVERY ACT THIS YEAR SUFFERED FROM THE CONTINUING EFFECTS OF THE RECESSION SAYS GARY BONGIOVANNI EDITOR OF POLLSTAR A TRADE MAGAZINE COVERING THE CONCERT BUSINESS EVEN U2 APPEARED IN SOME STADIUMS WHERE THERE WERE AT LEAST 10000 EMPTY SEATS OTHER ACTS INCLUDING ROCKER JOHN MELLENCAMP WERE FORCED TO CANCEL CERTAIN DATES DUE TO DISAPPOINTING SALES EVEN BRUCE SPRINGSTEEN RESORTED TO TWOFORONE PROMOTIONS TO BOOST ATTENDANCE IN SOME CITIES SAYS MR BONGIOVANNI THOUGH THE BOSS CAME IN FIFTH IN BOTH POLLSTAR'S TALLY AND THAT OF PERFORMANCE MAGAZINE STILL CONCERT PROMOTERS AND ARENA MANAGERS HEAVED A SIGH OF RELIEF THAT SALES REBOUNDED SHARPLY FROM LAST YEAR'S DISMAL RESULTS GROSS TICKET SALES ROSE ABOUT 21 THIS YEAR SAYS MR BONGIOVANNI TO NEARLY 1 BILLION ALTHOUGH THAT FIGURE TRAILS 1990'S RECORD OF 11 BILLION WHEN IT COMES TO THE TOPGROSSING ACTS 1992 LOOKED ESPECIALLY ROBUST JANE COHEN SENIOR EDITOR OF PERFORMANCE MAGAZINE SAYS THAT FOR THE TOP 50 ACTS TICKET SALES ROSE 44 IN '92 AND ATTENDANCE WAS UP 32 THE MUSIC BUSINESS IS CYCLICAL IN NATURE AND 1992 WAS HELPED BY A SURGE IN SUPERSTARS HITTING THE ROAD ACTS THAT TEND TO ATTRACT MORE FANS AND ARE MORE APT TO BOOK GIANT STADIUMS OVER MEDIUMSIZE ARENAS THE YEAR'S BIG STADIUM TOURS INCLUDED GENESIS THE PERENNIALLY POPULAR GRATEFUL DEAD AND A MATCHUP OF HEAVYMETAL FAVORITES METALLICA AND GUNS N' ROSES ONE OF LAST YEAR'S FEW TRIUMPHS THE LOLLAPALOOZA TOUR FEATURING A MIX OF CUTTINGEDGE BANDS WAS FOLLOWED BY LOLLAPALOOZA II AN EVEN BIGGER ALLDAY ROCK FEST THAT DOUBLED TICKET SALES TO ABOUT 19 MILLION WHILE GARTH BROOKS DIDN'T MAKE THE TOP 10 IN TICKET SALES HE GROSSED ABOUT 185 MILLION THAT'S ONLY BECAUSE THE COUNTRY SINGER INSISTED ON KEEPING HIS TICKET PRICES AFFORDABLE WELL BELOW WHAT HIS FANS WOULD PAY HE WAS BRILLIANT TO HOLD HIS TICKETS TO 18 BECAUSE HE'S BUILDING A CAREER AND A LOYAL FAN BASE THAT JUST WON'T GO AWAY SAYS MR BONGIOVANNI I GUESS THAT'S ONE REASON WHY HE SPENT THE WHOLE OF 1992 SELLING AT LEAST 500000 ALBUMS EVERY MONTH 9301040083 930104 LIBERTY MEDIA CORP IS DELAYED IN BUYING HOME SHOPPING STAKE NEW YORK LIBERTY MEDIA CORP SAID ITS AGREEMENT TO BUY CONTROL OF HOME SHOPPING NETWORK HAS BEEN HELD UP BECAUSE THE JUSTICE DEPARTMENT HAS YET TO APPROVE IT LIBERTY MEDIA HAD ANTICIPATED CLOSING THE 160 MILLION CASH AND STOCK DEAL BY THE END OF 1992 BUT COMPLETION OF THE TRANSACTION WAS CONTINGENT ON APPROVAL BY THE JUSTICE DEPARTMENT WHICH MUST CONSIDER ANTITRUST ISSUES A DEPARTMENT SPOKESMAN WOULD ONLY SAY THAT THE PROPOSED SALE REMAINS UNDER REVIEW THE DEAL COULD POSE ANTITRUST PROBLEMS BECAUSE LIBERTY MEDIA ALREADY HOLDS A SUBSTANTIAL STAKE IN QVC THE ONLY DOMINANT RIVAL OF HSN IN THE TELEVISION SHOPPING BUSINESS ANALYSTS AND CABLE PUNDITS HAVE SPECULATED THAT LIBERTY MEDIA ONCE IN CONTROL OF BOTH TV SHOPPING BEHEMOTHS WOULD MERGE THEM INTO A MERCHANDISING POWERHOUSE WITH COMBINED REVENUE OF MORE THAN 2 BILLION BUT LIBERTY MEDIA MAINTAINS THAT IT HASN'T EVEN CONSIDERED SUCH A COURSE AND THAT THE TWO IF COMBINED WOULD REPRESENT ONLY A TINY SLICE OF THE BROADER RETAILING MARKET LIBERTY MEDIA SAID IT NOW EXPECTS THE DEAL WILL BE COMPLETED EARLY THIS YEAR 9301040082 930104 FARM PRICES FOR DECEMBER ROSE 15 FROM NOVEMBER WASHINGTON FARM PRICES ROSE 15 IN DECEMBER FROM A MONTH EARLIER WITH INCREASES FOR LETTUCE CATTLE HOGS AND SOYBEANS MORE THAN OFFSETTING DROPS FOR ORANGES MILK BROILERS AND PEANUTS THE AGRICULTURE DEPARTMENT SAID THE DEPARTMENT'S FIGURES WHICH REFLECT AVERAGE PRICES RECEIVED BY FARMERS FOR CROPS AND LIVESTOCK WERE 07 HIGHER THAN IN DECEMBER 1991 OVER THE YEAR PRICE INCREASES FOR CATTLE LETTUCE TOMATOES AND HOGS WERE ONLY PARTIALLY OFFSET BY DECREASES FOR ORANGES CORN MILK AND EGGS LAST MONTH LETTUCE PRICES MORE THAN DOUBLED FROM NOVEMBER TO 2080 A HUNDREDWEIGHT ONION PRICES ALSO ROSE WHILE PRICES FELL SLIGHTLY FOR TOMATOES SWEET CORN AND CARROTS ACCORDING TO THE REPORT ORANGE PRICES DECREASED BECAUSE SUPPLIES WERE GREATER AND MORE ORANGES WENT TO PROCESSORS PEAR PRICES ALSO DECREASED WHILE PRICES ROSE FOR GRAPEFRUIT AND STRAWBERRIES BEEF CATTLE PRICES WERE UP 120 A HUNDREDWEIGHT FROM NOVEMBER AND ROSE 4 FROM A YEAR EARLIER HOG PRICES WERE UP 120 FROM NOVEMBER AND 350 FROM DECEMBER 1991 9301040081 930104 CHINA TO ALLOW MORE FIRMS TO PUBLICLY ISSUE SECURITIES BEIJING AP IN A MAJOR MOVE TO EXPAND CHINA'S FLEDGLING STOCK MARKETS THE GOVERNMENT PLANS TO ALLOW MORE ENTERPRISES TO PUBLICLY ISSUE SHARES AN OFFICIAL REPORT SAID AT PRESENT ONLY FIRMS IN HAINAN FUJIAN AND GUANGDONG PROVINCES ARE ALLOWED TO OFFER STOCKS TO THE PUBLIC THE XINHUA NEWS AGENCY QUOTED AN AUTHORITATIVE SOURCE AS SAYING THAT THIS YEAR EACH PROVINCE WILL SELECT ONE OR TWO SHAREHOLDING COMPANIES TO BE LISTED ON CHINA'S TWO OFFICIAL STOCK EXCHANGES IN SHENZHEN AND SHANGHAI WHICH OPENED IN LATE 1990 THE SOURCE SAID 873 MILLION IN NEW SHARES WOULD BE ISSUED THIS YEAR STOCK MARKET FEVER SWEPT THE COUNTRY IN 1992 AS MILLIONS OF CHINESE WHO REGARD STOCKS AS SURE MONEYMAKERS SCRAMBLED TO BUY SHARES IN AUGUST A MILLION PEOPLE FLOODED THE SOUTHERN CITY OF SHENZHEN TO BUY SHARES IN NEWLY LISTED COMPANIES RIOTS BROKE OUT WHEN AUTHORITIES RAN OUT OF APPLICATION FORMS THE TWO STOCK EXCHANGES NOW LIST 70 COMPANIES UP FROM LESS THAN 20 IN 1991 EIGHTEEN ARE BSHARES WHICH CAN BE PURCHASED ONLY WITH FOREIGN EXCHANGE 9301040080 930104 TECHNOLOGY HOECHST CELANESE PLANS SHIFT TO RECYCLABLE CARPETS NEW YORK HOECHST CELANESE CORP SAID IT PLANS TO MARKET A RECYCLABLE CARPET WITHIN ONE YEAR AND EVENTUALLY WILL TRANSFORM ITS ENTIRE LINE OF CARPETING INTO RECYCLABLE PRODUCTS THE NEW CARPETING WILL BE MADE ENTIRELY OF A POLYESTER MIXTURE THAT CAN BE FULLY RECYCLED CURRENTLY THE BACKING OF ITS CARPETS IS MADE WITH A MIXTURE OF POLYPROPYLENE AND LATEX WHICH CAN'T BE RECYCLED HOECHST CELANESE A UNIT OF HOECHST AG OF GERMANY HAS INTERESTS IN CHEMICALS FIBERS FILM AND ADVANCED MATERIALS THE NEW CARPETS WITH THE BRAND NAME TREVIRA ONE WILL COST ABOUT THE SAME AS COMPARABLE POLYPROPYLENEBACKED CARPETS THEY WOULD ALSO BE LIGHTER AND SOFTER THAN CONVENTIONAL CARPETS THE COMPANY SAID PLANS FOR ARRANGING TO RECYCLE CARPETS ARE STILL UNDER CONSIDERATION A SPOKESWOMAN SAID THAT CUSTOMERS WOULD NOT BE EXPECTED TO CARRY THEIR CARPETS TO A RECYCLING SITE INSTEAD WE NEED TO MAKE ARRANGEMENTS WITH RETAILERS CONCERNING A RECYCLING PLAN 9301040079 930104 BUSINESS BRIEFS TRANS FINANCIAL BANCORP BOUGHT DAWSON SPRINGS BANCORP INC FOR 97 MILLION SORICON CORP ACQUIRED THE POINTOFSALE CHECKREADING BUSINESS OF FARGO ELECTRONICS INC OF MINNEAPOLIS THE PURCHASE PRICE WASN'T DISCLOSED GRAND VALLEY GAS CO COMPLETED THE SALE OF 10 MILLION OF SUBORDINATED CONVERTIBLE NOTES TO MASSACHUSETTS MUTUAL LIFE INSURANCE CO DESTEC ENERGY INC AND A UNIT OF TRANSCO ENERGY CO COMPLETED FINANCING FOR A 424MEGAWATT COGENERATION PROJECT NEAR FREEPORT TEXAS CHAMBERS DEVELOPMENT CO RECEIVED A PERMIT TO BUILD AND OPERATE A 259ACRE SOLIDWASTE LANDFILL IN HARRISON COUNTY OHIO A UNIT OF NOBLE AFFILIATES INC HAS A PARTICIPATION AGREEMENT WITH NESTE OY OF FINLAND FOR CERTAIN TUNISIAN CONCESSIONS AND EXPLORATION LICENSES HELD BY NOBLE GREAT AMERICAN INSURANCE CO PURCHASED 514 MILLION SHARES OF STI GROUP INC AT 725 EACH AS PART OF ITS PREVIOUSLY ANNOUNCED TENDER OFFER 9301040078 930104 YEAREND REVIEW OF COMMODITIES BIG BOARD LISTINGS GAIN 200 COMPANIES NEW YORK THE NEW YORK STOCK EXCHANGE GAINED A RECORD NET TOTAL OF 200 LISTED COMPANIES IN 1992 THE ADDITIONAL LISTINGS INCLUDING 165 INITIAL PUBLIC OFFERINGS PUSHED THE BIG BOARD'S ROSTER OF LISTED COMPANIES TO NEARLY 2100 DURING THE YEAR TRADING VOLUME TOPPED 50 BILLION SHARES FOR THE FIRST TIME REFLECTING A RECORD AVERAGE OF 202 MILLION SHARES A DAY OF TRADING THE NASDAQ OVERTHECOUNTER MARKET WHICH STILL ATTRACTS THE MOST IPOS WITH 422 LAST YEAR ALSO SET RECORDS FOR SHARE AND DOLLAR VOLUME THE NUMBER OF NASDAQLISTED COMPANIES REMAINED STEADY AT 4091 VOLUME ON THE SMALLER AMERICAN STOCK EXCHANGE ALSO SET A RECORD INVESTORS INSTITUTIONS AND INDIVIDUALS PARED DOWN THEIR DEBT OBLIGATIONS AND PURCHASED EQUITIES THROUGHOUT 1992 SAID JOSEPH R HARDIMAN NASDAQ PRESIDENT SMALL AND MIDCAP STOCKS CONTINUED TO BE A SIGNIFICANT PART OF THIS TREND HE SAID 9301040077 930104 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY WILL GROW MODERATELY THIS YEAR WITH SMALL DECLINES IN THE UNEMPLOYMENT RATE ACCORDING TO A WALL STREET JOURNAL SURVEY OF 44 ECONOMISTS THE US WILL DO BETTER ECONOMICALLY THAN ITS MAJOR TRADING PARTNERS SPELLING TROUBLE FOR US EXPORTERS THE FORECASTERS SAID THEY ALSO PREDICTED VERY SLIGHT INCREASES IN INTEREST RATES A STRONGER DOLLAR AND CONTINUED MILD INFLATION THE FACTORY SECTOR STRENGTHENED IN DECEMBER FOR THE FOURTH CONSECUTIVE MONTH ACCORDING TO A SURVEY OF PURCHASING MANAGERS WHO NOTED A PARTICULARLY STRONG INCREASE IN NEW ORDERS BUT FACTORY ORDERS FELL 09 IN NOVEMBER THEIR FIRST DROP IN THREE MONTHS CONTRACTS FOR NEW CONSTRUCTION FELL 10 IN NOVEMBER LED BY A SHARP DECLINE IN NONRESIDENTIAL CONSTRUCTION DRUG MAKERS ARE PROMISING CLINTON'S TRANSITION TEAM THAT THEY WILL SHARPLY REDUCE ANNUAL PRICE INCREASES IN A MOVE TO HEAD OFF DRUGPRICE CONTROLS THE COMPANIES ALSO SAID THEY MAY DROP THEIR OPPOSITION TO MEDICARE COVERAGE OF PRESCRIPTIONS AS LONG AS THE PRICES AREN'T SET TOO LOW BLUECHIP STOCK PRICES SLID BUT STOCKS OF SMALLER COMPANIES RALLIED THE DOW JONES INDUSTRIALS SLID 1999 POINTS TO FINISH THE YEAR AT 330111 UP 42 FROM THE END OF 1991 THE S&P 500 INDEX POSTED A 45 GAIN FOR THE YEAR NASDAQ STOCKS ENDED 1992 AT A RECORD HIGH UP 155 FROM A YEAR EARLIER THE SEC IS PREPARING TO CHARGE THE US UNITS OF JAPAN'S FOUR BIG BROKERAGE HOUSES WITH VARIOUS VIOLATIONS OF FEDERAL SECURITIES LAW INCLUDING THE ALLEGED USE OF UNLICENSED BROKERS PEOPLE FAMILIAR WITH THE MATTER SAID THE FIRMS ARE EXPECTED TO SETTLE THE CHARGES BY AGREEING TO PAY FINES INITIAL PUBLIC OFFERINGS OF STOCK RAISED A RECORD 394 BILLION FROM INVESTORS IN 1992 FUELED BY A BULL MARKET IN OVERTHECOUNTER STOCKS MANY ANALYSTS THINK THE VOLUME OF INITIAL OFFERINGS COULD GROW FURTHER ONCE ISSUED NEW STOCKS DID WELL LAST YEAR BUT NOT AS SPECTACULARLY AS 1991'S NEW ISSUES THE JANUS TWENTY FUND DECIDED TO STOP ACCEPTING NEW INVESTORS AFTER MORE THAN DOUBLING IN SIZE IN THE LAST 12 MONTHS TO 32 BILLION IN ASSETS THE MOVE BY THE TOPPERFORMING STOCK MUTUAL FUND WHOSE MANAGERS FEARED IT WAS GETTING TOO BIG FOLLOWS A WAVE OF SUCH CLOSINGS BY OTHER STOCK FUNDS TIME WARNER'S WARNER BROS APPEARED TO HAVE EDGED OUT WALT DISNEY AND SONY IN THE CONTEST TO BE THE LEADER IN MOVIE TICKET SALES LAST YEAR EACH COMPANY'S FILM OPERATIONS COMMANDED ABOUT 20 OF THE MARKET CHARTER MEDICAL AGREED TO REFORMS IN THE OPERATIONS OF ITS PSYCHIATRIC HOSPITALS IN TEXAS AS PART OF A 325 MILLION SETTLEMENT WITH THE STATE THE AGREEMENT RESEMBLES A 9 MILLION SETTLEMENT THAT THE STATE REACHED IN JUNE WITH NATIONAL MEDICAL ENTERPRISES THE FCC ASKED FOR A SECOND ROUND OF PUBLIC COMMENT ON ITS RULES LIMITING PARTICIPATION BY TELEVISION NETWORKS IN THE LUCRATIVE SYNDICATION BUSINESS A US TRADE PANEL IMPROPERLY IMPOSED A STIFF TARIFF ON JAPANESEMADE DISPLAY SCREENS USED IN EXPENSIVE LAPTOP COMPUTERS A FEDERAL COURT RULED BONDS LEHMAN BROTHERS TREASURY INDEX 469894 OFF 609 COMMODITIES OIL 1950 A BARREL OFF NINE CENTS DOW JONES FUTURES INDEX 12252 UP 061 SPOT INDEX 12129 UP 007 DOLLAR 12484 YEN UP 019 16209 MARKS UP 00029 9301040076 930104 WALMART MOVES TO AVERT MADE IN THE USA' GAFFES BENTONVILLE ARK AP WALMART HAS DIRECTED EMPLOYEES AT ALL ITS STORES TO MAKE SURE FOREIGNMADE PRODUCTS ARE NOT DISPLAYED UNDER MADE IN THE USA SIGNS A SPOKESMAN SAID THE COMPANY IS CHECKING ITS STORES IN RESPONSE TO A REPORT ON THE NBCTV DATELINE NBC PROGRAM LAST WEEK IN WHICH WALMART STORES INC WAS ACCUSED OF BEING DECEPTIVE IN ITS BUY AMERICA CAMPAIGN THE NBC REPORT FOUND FOREIGNMADE APPAREL FOR SALE UNDER THE MADE IN THE USA SIGNS IN 12 STORES WALMART DENIED THE ALLEGATIONS AND SEVERAL OTHERS MADE IN THE PROGRAM IT SAID SOME EMPLOYEES MADE A MISTAKE BY PLACING THE GOODS UNDER A MADE IN THE USA SIGN THERE NEVER HAS NEVER WILL BE ANY INTENT TO DECEIVE OUR CUSTOMERS SPOKESMAN DON SHINKLE SAID WEDNESDAY MR SHINKLE SAID COMPANY EXECUTIVES HAVE HELD MEETINGS WITH EMPLOYEES TO ENSURE THAT THE MISLEADING SIGNS WON'T APPEAR AGAIN WE ADMIT THAT MISTAKE AND EXTEND APOLOGIES TO ANY CUSTOMERS WE OFFENDED HE SAID WALMART IS THE NATION'S LARGEST RETAILER THE COMPANY OPERATES 1838 WALMART STORES AND 256 SAM'S WHOLESALE CLUB STORES IN 45 STATES AND PUERTO RICO 9301040075 930104 STEWART FOODS FILES FOR CHAPTER 11 SHIELD FROM ITS CREDITORS NORFOLK VA STEWART FOODS INC FILED FOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE AND SAID IT WILL CONTINUE OPERATIONS WHILE RESTRUCTURING STEWART FOODS A PRODUCER AND DISTRIBUTOR OF FRESH AND FROZEN SANDWICHES AND OTHER REFRIGERATED FOODS HAD BEEN SEVERELY STRAINED IN RECENT YEARS BY HIGHLY COMPETITIVE MARKETS RECENT POOR ECONOMIC CONDITIONS AND HIGH COSTS ASSOCIATED WITH ITS EXPANDED ROUTE DISTRIBUTION BUSINESS EXACERBATED ITS FINANCIAL PLIGHT THE COMPANY SAID JAMES SHEERAN THE COMPANY'S LAWYER FOR THE FILING ESTIMATED LIABILITIES AT ABOUT 10 MILLION HE ALSO SAID ABOUT 600 SHAREHOLDERS AND 1350 CREDITORS ARE AFFECTED BY THE PROCEEDINGS OF 1350 CREDITORS ONLY SIX OWNED SECURED DEBT IN MAY STEWART FOODS SECURED NEW FINANCING THAT IT SAID WOULD SUPPORT EXPANSION PLANS AND OPERATIONS BUT THE 1 MILLION DEBT PLACEMENT AND A 15 MILLION CREDIT FACILITY COULDN'T SUFFICIENTLY FUND THE COMPANY'S PLANS AN OFFICIAL SAID ON THE OVERTHECOUNTER MARKET STEWART FOODS' STOCK HAS BEEN TRADING BELOW 1 A SHARE FOR THE PAST FEW WEEKS THE STOCK CLOSED THURSDAY AT 1875 CENTS DOWN 4375 CENTS THE COMPANY SAID EFFORTS OVER THE PAST 18 MONTHS TO INCREASE SALES IN THE CORE BUSINESS WHILE EXPANDING THROUGH ACQUISITIONS FAILED TO PRODUCE SUFFICIENT PROFITS THE COMPANY WOULD NOT PREDICT WHEN IT MIGHT EMERGE FROM BANKRUPTCY PROTECTION FOR THE YEAR ENDED JUNE 26 1992 THE COMPANY HAD A NET LOSS OF 32 MILLION OR 179 A SHARE ON SALES OF 268 MILLION 9301040074 930104 INTERNATIONAL GERMANY FACES A YEAR OF WORSENING ILLS RECESSION IS ACCENTED BY VIOLENCE REFUGEE INFLUX BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN HISTORIAN MICHAEL STUERMER DUBS 1992 IN GERMANY THE YEAR OF RECESSION AND HELPLESSNESS BUT 1993 HE SAYS WILL BE EVEN WORSE IT WOULD BE BAD ENOUGH IF GERMANY WERE SIMPLY SLUMPING INTO RECESSION AS EVEN CHANCELLOR HELMUT KOHL NOW CONCEDES BUT THE DOWNTURN COMES AT A TIME OF DEEP NATIONAL STRAINS A SURGE OF FARRIGHT VIOLENCE A DESTABILIZING INFLUX OF REFUGEES GROWING SKEPTICISM ABOUT MR KOHL'S RECONSTRUCTION PLANS FOR EASTERN GERMANY AND WANING SUPPORT FOR THE EUROPEAN COMMUNITY'S AMBITIOUS UNITY PLANS THE GERMANS GOT USED TO LIVING IN THEIR TIDY AIRCONDITIONED WORLD SAYS MR STUERMER HEAD OF THE SCIENCE AND POLITICS FOUNDATION A THINK TANK BUT NOW EVERYTHING SEEMS OUT OF JOINT JUST ONE YEAR AGO A UNIFIED AND ECONOMICALLY BOOMING GERMANY WAS POISED TO LEAD THE EC INTO DEEPER UNION MR KOHL STILL INSISTS GERMAN UNITY AND EUROPEAN UNION ARE TWO SIDES OF THE SAME COIN BUT WITH GERMANY DISTRACTED BY ITS OWN PROBLEMS AND TURBULENCE IN EUROPEAN POLITICS ON THE RISE THE COUNTRY SEEMS A WOBBLY LEADER AT BEST EVEN AS THE EC LIFTS MANY INTERNAL BARRIERS TO THE MOVEMENT OF GOODS AND PEOPLE WITH THE START OF THE NEW YEAR ENTHUSIASM AMONG GERMANS FOR A EUROPEAN SUPERSTATE IS EBBING WHILE IT NEVER EXISTED FOR A SINGLE CURRENCY OUR PUBLIC DISCUSSION IS ONLY JUST STARTING ON EUROPE SAYS KLAUSWERNER SCHATZ AN ECONOMIST AT THE KIEL INSTITUTE OF WORLD ECONOMICS AND IT'S GOING TO GET MUCH TOUGHER IN COMING MONTHS WITHOUT GERMANY IN THE LEAD SOME POLITICAL OBSERVERS EXPECT THE EC PARADE TO REMAIN STALLED OR EVEN ROLL BACKWARDS SAYS ONE DIPLOMAT BASED IN BONN THIS ISN'T THE TIME TO EXPECT GERMANS TO TALK ABOUT NEW ROLES IN THE WORLD THEY'RE TOO BUSY IN THEIR OWN BACKYARD LOOKING AT 1993 MOST ECONOMISTS AGREE GERMANY'S SITUATION WILL GET WORSE BEFORE IT GETS BETTER A WAVE OF SOCIAL AND POLITICAL UNREST WILL CONTINUE AND POSSIBLY DEEPEN MR STUERMER PREDICTS WHILE ECONOMIC RECOVERY PROBABLY WON'T BEGIN UNTIL THE FOURTH QUARTER RIGHT NOW ALMOST EVERY INDICATOR POINTS DOWNHILL NOVEMBER UNEMPLOYMENT FIGURES IN WESTERN GERMANY INCHED UP TO 69 AND THIRDQUARTER ECONOMIC DATA SHOWED THE SECOND CONSECUTIVE QUARTER OF NEGATIVE GROWTH WITH GROSS DOMESTIC PRODUCT FALLING 05 FROM THE PREVIOUS QUARTER AND GROSS NATIONAL PRODUCT SLIDING 15 IT WAS THESE FIGURES WHICH BROADLY MEASURE ECONOMIC OUTPUT THAT PROMPTED MR KOHL AND OTHER CABINET MEMBERS TO CONFESS THAT GERMANY WAS IN RECESSION BUT NOT EVERYONE IS ENTIRELY DOWNBEAT AFTER A SUSTAINED ECONOMIC BOOM LIKE THE ONE WE JUST HAD WARNS MR SCHATZ THE ECONOMIST IT'S NATURAL TO LOOK AT A RECESSION IN OVERLY GLOOMY TERMS MR SCHATZ'S OWN INSTITUTE WAS ONE OF FIVE LEADING THINK TANKS THAT RECENTLY PRONOUNCED WESTERN GERMANY'S ECONOMY WON'T GROW AT ALL THIS YEAR WHILE RATCHETING DOWN GROWTH PROJECTIONS FOR EASTERN GERMANY AS WELL BUT MR SCHATZ PREDICTS GERMANY'S ECONOMY WILL START SNAPPING BACK STRONGLY IN THE THIRD QUARTER FUELED BY INTERESTRATE CUTS BY THE BUNDESBANK THE CENTRAL BANK AND A STRONG SURGE IN THE US ECONOMY IN LATE DECEMBER BUNDESBANK CHIEF HELMUT SCHLESINGER PREDICTED THAT GERMANY'S LONGTERM INTEREST RATES COULD DROP BELOW 6 IN A FORTHCOMING CYCLE OF FALLING RATES BUT MR SCHLESINGER EMPHASIZED THIS FORECAST HINGES UPON A BREAK IN INFLATION THERE ARE SIGNS THIS IS HAPPENING BUT IT COULD BE MONTHS BEFORE THE BUNDESBANK'S CAUTIOUS MONEY MANAGERS ARE SATISFIED THE MAIN GLIMMER OF HOPE IS FROM THE LABOR UNIONS AFTER BATTLING FOR HEFTY WAGE INCREASES LAST YEAR LABOR IS STARTING TO SETTLE FOR MODERATE INCREASES I EXPECT THE BUNDESBANK TO MOVE IN THE FIRST QUARTER TO EASE RATES SAYS MR SCHATZ ADDING THAT GERMANY'S CENTRAL BANK IS UNDER HEAVY PRESSURE FROM POLITICIANS IN BONN AS WELL AS FROM OTHER GOVERNMENTS MANY WESTERN GOVERNMENTS BLAME THE BUNDESBANK'S INTEREST RATE POLICY WITH DEEPENING THE GLOBAL RECESSION BUT INFLATION IS ONLY A PART OF THE PICTURE MOST ECONOMISTS SAY THE BUNDESBANK WILL ALSO WAIT FOR CLEAR SIGNS THAT BONN IS UNTANGLING GERMANY'S FISCAL MESS BEFORE IT TAKES ACTION AND ON THIS SCORE THE OUTLOOK IS CLOUDIER THE BUNDESTAG GERMANY'S PARLIAMENT PASSED A 1993 BUDGET IN NOVEMBER THAT ENVISIONS A DEFICIT OF 44 BILLION MARKS 2716 BILLION BUT LEAVES UNANSWERED HOW GERMANY WILL PAY MANY OF THE MOUNTING BILLS ASSOCIATED WITH REBUILDING EASTERN GERMANY MR KOHL'S MAIN WEAPON FOR FIXING THE ECONOMY AND ENDING POLITICAL DRIFT IS A SOLIDARITY PACT THE IDEA IS TO FORGE A NATIONAL CONSENSUS INVOLVING LABOR GOVERNMENT AND EMPLOYERS AIMED AT DIVVYING UP THE BURDEN OF GERMANY'S PROBLEMS THE CHANCELLOR HOPES THAT BY HAMMERING OUT A CONSENSUS HE CAN RESTORE CONFIDENCE IN THE ECONOMY AND IN HIS OWN LEADERSHIP BUT IT'S A TOUGH BALANCING ACT MR KOHL RECENTLY CLASHED WITH FINANCE MINISTER THEO WAIGEL BY CALLING FOR NEW TAXES ON HIGHWAGE EARNERS STARTING IN 1995 THAT PUTS THE ONUS OF A TAX INCREASE SAFELY BEYOND THE NEXT NATIONAL ELECTIONS EXPECTED IN 1994 BUT MR WAIGEL INSISTS ANY TALK OF NEW TAXES WILL STYMIE EFFORTS TO CUT SPENDING AND WILL ADD TO THE RECESSIONARY GLOOM SUCH DISPUTES STIR TALK OF AN EMERGING VERTEILUNGSKAMPF A BATTLE OVER A SHRINKING GERMAN ECONOMIC PIE THERE ARE CLEARLY COSTS INVOLVED IN THE SOLIDARITY PACT SAYS PETER WEILEMANN ASSISTANT DIRECTOR OF THE RESEARCH INSTITUTE AT THE KONRAD ADENAUER FOUNDATION A GROUP CLOSELY LINKED TO CHANCELLOR KOHL'S CHRISTIAN DEMOCRATS AND WHAT WE WILL SEE IS THE FIGHT OVER HOW THESE COSTS ARE DIVIDED MR WEILEMANN EXPECTS THE PACT TO BE FORGED BY MIDYEAR MR KOHL MEANWHILE IS ALSO UNDER PRESSURE TO CLARIFY HIS FUNDAMENTAL APPROACH TO EASTERN GERMAN INDUSTRY EVER SINCE FORMER EAST GERMAN FACTORIES WENT ON THE AUCTION BLOCK BONN HAS WAVERED BETWEEN A SURVIVALOFTHEFITTEST STRATEGY AND A POLICY OF KEEPING COMPANIES ALIVE TO SAVE JOBS WITH ONE IN THREE EASTERN GERMAN WORKERS NOW JOBLESS OR IN MAKEWORK PROGRAMS MR KOHL HAS VOWED TO CONTINUE SUPPORTING MAJOR INDUSTRIES EVEN IF THEY AREN'T COMPETITIVE 9301040073 930104 LETTERS TO THE EDITOR A CALL FROM UP THERE IN YOUR NOV 16 ARTICLE ON TECHNOLOGY FOR THE BUSINESS TRAVELER SPECIAL REPORT YOU WRITE THAT INFLIGHT PHONE SERVICE HASN'T TAKEN OFF IF THIS IS TRUE WHO IS MAKING ALL THOSE CALLS FROM COMMERCIAL AIRCRAFT SINCE LATE 1984 PASSENGERS HAVE PLACED MORE THAN 21 MILLION CALLS ON THE AIRFONE SERVICE AND THE NUMBER IS INCREASING AT THE RATE OF ALMOST A MILLION CALLS A MONTH WHAT WAS ONCE A NOVELTY IS NOW A NECESSITY FOR BUSINESS TRAVELERS THAT'S WHY 11 AIRLINES PROVIDE THE SERVICES UPCOMING DIGITAL SERVICES WILL AS YOU SAY PROVIDE ADDITIONAL OPTIONS SUCH AS GROUNDTOPLANE CALLING DATA AND FAX TRANSMISSION BUT BUSINESS TRAVELERS ALREADY KNOW THEIR OFFICES AND CLIENTS ARE ONLY A PHONE CALL AWAY EVEN AT 35000 FEET 9301040072 930104 TECHNOLOGY FDA APPROVES DRUGS BY FISONS AND BOOTS FOR ASTHMA HEART WASHINGTON THE FOOD AND DRUG ADMINISTRATION APPROVED TWO BRITISHDEVELOPED DRUGS ASTHMA DRUG TILADE MANUFACTURED BY FISONS PLC'S US UNIT FISONS PHARMACEUTICALS AND MANOPLAX A CARDIOVASCULAR DRUG MADE BY BOOTS PHARMACEUTICALS INC A UNIT OF BOOTS CO ASTRA PHARMACEUTICAL PRODUCTS INC A UNIT OF SWEDEN'S AB ASTRA SAID LAST WEEK THE FDA APPROVED ITS EMLA CREAM A LOCAL SKIN ANESTHETIC ASTRA SAID ITS LOCAL ANESTHETIC EMLA CREAM CAN ELIMINATE THE NEED FOR NEEDLE INJECTION EMLA WHICH COMBINES ANESTHETICS LIDOCAINE AND PRILOCAINE IS APPLIED UNDER A DRESSING FOR AN HOUR TO ANESTHETIZE THE SKIN FISONS'S TILADE INHALER INTENDED TO PREVENT ASTHMA ATTACKS RESEMBLES INTAL A DRUG CURRENTLY MARKETED BY FISONS ACCORDING TO AN FDA OFFICIAL FISONS AND RHONEPOULENC RORER COLLEGEVILLE PA SAID THEY WILL COPROMOTE TILADE TOGETHER WITH RHONEPOULENC'S ASTHMA DRUG AZMACORT A METEREDDOSE INHALED STEROID BOOTS'S MANOPLAX WAS APPROVED FOR THE TREATMENT OF CONGESTIVE HEART FAILURE THE DRUG DILATES VEINS AND ARTERIES TO EASE BLOOD FLOW TO THE HEART IT IS TO BE USED MAINLY BY CARDIAC PATIENTS WHO CANNOT TOLERATE AN ACE INHIBITOR OR WHO DO NOT RESPOND ADEQUATELY TO IT THE DRUG WILL BE JOINTLY MARKETED BY BOOTS OF LINCOLNSHIRE ILL AND THE PARKEDAVIS DIVISION OF WARNERLAMBERT CO OF MORRIS PLAINS NJ 9301040071 930104 LETTERS TO THE EDITOR A LITTLE STIMULUS WOULDN'T HURT PROF RONALD MCKINNON'S A FISCAL STIMULUS' WON'T WORK EDITORIAL PAGE DEC 24 IS WIDE OF THE MARK PROPERLY APPLIED FISCAL STIMULUS WILL WORK AND DOES WORK ALL OVER THE WORLD THE ISSUE IS WHETHER IT IS NEEDED AND WHEN PROF MCKINNON ALSO MISJUDGES THE RECENT ECONOMIC CONFERENCE IN LITTLE ROCK IT WAS NOT JUST NOBEL LAUREATE JAMES TOBIN BUT MOST OF THE ECONOMISTS PRESENT INCLUDING NOBEL LAUREATE ROBERT SOLOW ALAN BLINDER ALLEN SINAI JEFF FAUX ROBERT KUTTNER AND MYSELF AMONG OTHERS WHO STRESSED THE NEED FOR PROGRAMS BOTH FOR LONGTERM GROWTH AND SHORTRUN STIMULUS TO OUR SLUGGISH ECONOMY PROF MCKINNON MAY FEEL NOTHING IS TO BE DONE WHEN THE NATION'S INCOME AND OUTPUT ARE NO HIGHER THEN THEY WERE THREE YEARS AGO OTHER THAN CREDIBLY SIGNAL THE RATTLED CREDIT MARKETS MOST AMERICAN VOTERS ALONG WITH ECONOMISTS HAVE INDICATED OTHERWISE AND PRESIDENTELECT CLINTON CERTAINLY DID NOT RULE OUT MEASURES FOR ECONOMIC RECOVERY HE MADE CLEAR BY HIS ATTENTION AND RESPONSES TO SOMETIMES DIVERGENT VIEWS THAT HE WAS WATCHING DEVELOPMENTS CLOSELY AND WOULD DECIDE IN THE LIGHT OF CONDITIONS WHEN HE TAKES OFFICE PRECISELY WHAT TO RECOMMEND PROF MCKINNON UNFORTUNATELY SUBSTITUTES HIS OWN ESOTERIC VIEWS FOR WHAT HE LABELS A VERY SPECIALIZED KEYNESIAN MODEL APPLICABLE TO THE 1930S BUT NOT NOW HE ARGUES THAT FISCAL STIMU BY KINDLING FEARS OF INFLATION WILL RAISE LONGTERM INTEREST RATES AND RESULT IN SO MUCH CROWDING OUT OF PRIVATE INVESTMENT THAT THE PERFORMANCE OF THE ECONOMY WILL ACTUALLY DETERIORATE SOME ECONOMISTS LIKE GENERALS ARE ALAS ALWAYS READY TO FIGHT THE LAST WAR INFLATION NOW IS NEGLIGIBLE AND IT IS HARD TO SEE WHY RATIONAL INVESTORS WHATEVER SOME OF THEM MAY SAY SHOULD LONG FEAR IT IN THE FACE OF AN ECONOMY FAR FROM CAPACITY UNEMPLOYMENT IS STILL IN THE 7 RANGE FROM 1988 TO 1990 UNEMPLOYMENT WAS UNDER 55 WITH INFLATION THAT WAS LOW AND SHOWING NO SIGNIFICANT EVIDENCE OF INCREASING AND FURTHER SUPPOSE THERE WERE SOME UPTICK IN LONGTERM INTEREST RATES WITH FISCAL STIMULUS OR THE GROWTH IN PRODUCT IT STIMULATED THERE IS EVERY REASON TO BELIEVE THAT BUSINESS INVESTMENT WOULD BE MUCH MORE POSITIVELY AFFECTED BY THE STIMULUS AND ANY EXPECTATION OF HIGHER PRICES FOR THE GOODS BUSINESS WOULD BE SELLING AS TO THAT HOARY ISSUE OF THE DEFICIT PROF MCKINNON WOULD DO WELL TO LOOK NOT AT THE GENERALLY MISMEASURED REPORTED DEFICIT SWOLLEN BY THE RECESSION AND SLOW ECONOMY BUT AT THE UNDERLYING STRUCTURAL DEFICIT STANDARDIZED FOR A 6 UNEMPLOYMENT RATE AND PROPERLY ADJUSTED FOR INFLATION THAT REAL DEFICIT WAS REDUCED FROM 34 OF GNP IN 1986 TO 08 IN 1991 INDEED THAT REDUCTION OF THE DEFICIT INCLUDING THE TAX INCREASE IN 1990 CONSTITUTED FISCAL TIGHTNESS THAT CONTRIBUTED SIGNIFICANTLY TO OUR SLUGGISH ECONOMY AND RECESSION IN FACT THERE ARE STIMULUS PACKAGES THAT WOULD NOT EVEN INCREASE THE DEFICIT IN THE SHORT RUN AND WOULD CLEARLY WITH A MORE PRODUCTIVE ECONOMY REDUCE IT IN THE LONG RUN WE MIGHT FOR EXAMPLE HAVE A VERY LARGE TEMPORARY INCREMENTAL INVESTMENT TAX CREDIT EQUAL TO SAY 30 OF THE INCREASE IN INVESTMENT EXPENDITURES OVER THOSE IN 1992 BUT LEGISLATED TO EXPIRE WITH THE END OF 1993 WE MIGHT HAVE SIMILAR TEMPORARY SUBSIDIES TO PURCHASE OF NEW HOUSES AND A QUICK GOAHEAD FOR PUBLIC INFRASTRUCTURE PROJECTS WAITING TO BE FINANCED ALL OF THESE MEASURES WOULD BRING ABOUT THE SHORTRUN UTILIZATION OF OTHERWISE IDLE RESOURCES OF LABOR AND CAPITAL AND ADD TO THE LONGTERM CAPACITY OF OUR ECONOMY TO PROVIDE A BETTER LIFE AND THAT IS WHAT IT SHOULD ALL BE ABOUT 9301040070 930104 INTERNATIONAL WASHINGTON INSIGHT CLINTON TEAM SEEKS POLICY TO AID HAITI AND AVERT FEARED SURGE OF EMIGRATION BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENIOR AIDES TO PRESIDENTELECT CLINTON ARE COBBLING TOGETHER A POLICY THEY HOPE WILL FORESTALL A SURGE OF HAITIAN IMMIGRANTS ONTO US SHORES THE CLINTON ADVISERS SAY THEY WILL ATTEMPT WHAT PRESIDENT BUSH FAILED TO DO ESTABLISH AN EQUITABLE REFUGEE POLICY AND LINK IT WITH RENEWED EFFORTS TO BRING ECONOMIC RELIEF AND DEMOCRACY TO HAITI WHICH HAS KNOWN LITTLE OF EITHER THE JOB WON'T BE EASY AND MR CLINTON WON'T HAVE MUCH TIME TO PULL IT OFF IF THE CLINTON ADMINISTRATION ALLOWS THE CURRENT SITUATION TO STAND IT WILL BE FACED WITH A CONTINUING MIGRATION PROBLEM THAT IT WON'T BE ABLE TO DEAL WITH EFFECTIVELY BY SIMPLY TRYING TO HAVE A HUMANE POLICY WARNS DORIS MEISSNER A SENIOR ASSOCIATE AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON CRITICIZED PRESIDENT BUSH'S DECISION TO INTERDICT HAITIAN BOAT PEOPLE AT SEA AND TURN THEM BACK WITHOUT LETTING THEM CLAIM REFUGEE STATUS IN THE US IN HAITI HIS WORDS WERE MISINTERPRETED TO MEAN HE WOULD OPEN THE DOORS TO COUNTLESS IMMIGRANTS AS A RESULT SENIOR US OFFICIALS ESTIMATE AS MANY AS 200000 HAITIANS MAY BE READY TO EMBARK FOR THE US SOON AFTER MR CLINTON ASSUMES OFFICE THE HAITIANS ARE DRIVEN BY HUMANRIGHTS ABUSES AND INCREASED ECONOMIC HARDSHIP CAUSED BY THE EMBARGO OF HAITI EVEN THE WEATHER IS ENCOURAGING THEM THE TROPICAL STORM SEASON IS OVER SO THE TRIP TO THE US IS LESS HAZARDOUS THE CLINTON TEAM HAS TRIED TO DAMP RISING EXPECTATIONS IN HAITI IT RECENTLY ISSUED A STATEMENT EMPHASIZING THAT US IMMIGRATION POLICY WILL BE ENFORCED A TOP CLINTON AIDE SAYS THE NEXT ADMINISTRATION SIMPLY WANTS TO GIVE HAITIANS A FAIR CHANCE TO ARGUE THAT THEY AREN'T JUST SEEKING ECONOMIC OPPORTUNITIES IN THE US BUT ARE FLEEING POLITICAL PERSECUTION THAT WOULD ENTITLE THEM TO REFUGEE STATUS TO ACHIEVE THAT GOAL THE CLINTON TRANSITION TEAM IS CONSIDERING INCREASING THE NUMBER OF CONSULAR OFFICERS AT THE US EMBASSY IN HAITI TO SPEED UP PROCESSING IT ALSO IS LOOKING AT THE POSSIBILITY OF SETTING UP PROCESSING CENTERS IN THIRD COUNTRIES SUCH AS PANAMA JAMAICA OR ON ISLANDS OFF HAITI AND HONDURAS SAY US OFFICIALS AND OTHER REFUGEE EXPERTS AND THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES IS PROPOSING THAT OTHER COUNTRIES IN THE REGION GRANT TEMPORARY ASYLUM TO HAITIANS BUT MORE WILL BE NEEDED IT'S LIKELY THAT PEOPLE ALWAYS WILL SEEK TO FLEE HAITI WHICH MAY NEVER BE A GARDEN SPOT OF OPPORTUNITY THE CLINTON TEAM KNOWS IT MUST FOCUS ON THE UNDERLYING CONDITIONS THAT PRODUCED THE SWELLING WAVES OF HAITIAN IMMIGRANTS THAT MAY BE MORE DIFFICULT THAN ACHIEVING A BALANCED REFUGEE POLICY THERE HAS BEEN A RECENT SURGE IN VIOLENCE IN HAITI LAST MONTH HUMANRIGHTS GROUPS SAY MILITARY FORCES ATTACKED DEMONSTRATING STUDENTS AT THE UNIVERSITY OF HAITI CAUSING 72 SERIOUS INJURIES OTHER REPORTS SAY OPPOSITION LEADERS HAVE BEEN ABDUCTED AND KILLED US EXPERTS SAY A FIRST STEP WOULD BE TO BOLSTER THE INADEQUATE ORGANIZATION OF AMERICAN STATES HUMANRIGHTS MONITORING TEAM NOW IN HAITI HAITI'S MILITARY REGIME ORIGINALLY AGREED TO PERMIT 18 OAS MONITORS IN EACH OF HAITI'S NINE DEPARTMENTS OR STATES THE MILITARY NEGOTIATED THAT DOWN TO A TOTAL OF 18 AND EVEN THAT NUMBER HAS SINCE BEEN REDUCED THE US PERHAPS WORKING THROUGH THE UN ALSO NEEDS TO PRESS THE EUROPEAN NATIONS PARTICULARLY FRANCE THAT ARE THWARTING THE OAS EMBARGO OF HAITI CURRENTLY THE LEAKY EMBARGO IS HURTING MAINLY HAITI'S MANY POOR FURTHER THE US MUST DECIDE HOW TO DEAL WITH HAITI'S DEPOSED PRESIDENT THE REV JEANBERTRAND ARISTIDE WHO WAS ELECTED OVERWHELMINGLY TWO YEARS AGO AND THEN OVERTHROWN BY THE MILITARY MICHAEL BARNES A FORMER US CONGRESSMAN WHO ADVISES MR ARISTIDE CONTENDS YOU CAN'T GOVERN THAT COUNTRY WITHOUT REPRESSION WITHOUT THE RETURN OF ARISTIDE BUT THE HAITIAN MILITARY STRONGLY OPPOSES SUCH A RESTORATION NEGOTIATIONS ALMOST SUCCEEDED IN PRODUCING A COMPROMISE LAST WINTER BUT MR ARISTIDE AND THE MILITARY LEADERS BACKED AWAY PETER HAKIM SENIOR FELLOW AT THE INTERAMERICAN DIALOGUE A PRIVATE GROUP SAYS THE US NOW MUST INSIST THAT BOTH SIDES NEGOTIATE IN GOOD FAITH I THINK IT WOULD BE A MISTAKE TO CONTINUE TO FOCUS ON ONLY ONE SOLUTION GETTING ARISTIDE BACK SAYS MR HAKIM THE CHALLENGE FOR MR CLINTON WILL BE TO RECOGNIZE THAT HAITI'S INTERNAL WOES AND THE REFUGEE PROBLEM ARE INEXTRICABLY LINKED UNTIL NOW US POLICIES FOR DEALING WITH THE PROBLEMS WERE ALL CONDUCTED INDEPENDENTLY OF EACH OTHER SAYS MR HAKIM THE REFUGEE ISSUE WAS MANAGED AS IF HAITI WAS A DIFFERENT COUNTRY FROM THE ONE IN WHICH WE WERE TRYING TO STOP HUMANRIGHTS ABUSES 9301040069 930104 YEAREND REVIEW OF BOND MARKET BILL CLINTON LEADS IN YET ANOTHER ELECTION THE MUNICIPAL BOND SALESMAN OF THE YEAR BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL BILL CLINTON APPEARS TO HOLD A COMMANDING LEAD IN THE HARDFOUGHT RACE FOR MUNICIPAL BOND SALESMAN OF THE YEAR INVESTMENT ADVISERS SAY MR CLINTON CLEARLY DESERVES THE PRIZE BECAUSE HIS PLANS TO RAISE TAXES HAVE CONTRIBUTED ENORMOUSLY TO PUBLIC AWARENESS OF THE VIRTUES OF TAXFREE BONDS THE PRESIDENTELECT WANTS TO RAISE THE TOP FEDERAL TAX RATE TO 36 FROM 31 FOR AMERICANS WITH INCOMES OVER 200000 AND TO SLAP A 10 SURTAX ON INCOME OVER 1 MILLION TAXEXEMPT BONDS ARE GOING TO BE ONE OF THE PRIMARY VEHICLES FOR AVOIDING THE IMPACT OF THESE HIGHER RATES SAYS GAIL FOSLER VICE PRESIDENT AND CHIEF ECONOMIST AT THE CONFERENCE BOARD BUT MR CLINTON ISN'T THE ONLY BOOSTER OF THE 11 TRILLION TAXFREE MUNICIPAL BOND BUSINESS SEVERAL STATE LEGISLATURES ALSO HELPED TO FOCUS INVESTOR ATTENTION ON TAXFREE BONDS BY RAISING INCOME TAXES IN 1992 AND MANY MORE STATES ARE THREATENING TO RAISE TAXES IN 1993 MUNICIPAL BONDS TURNED IN A STRONG PERFORMANCE LAST YEAR EVEN AS A RECORD VOLUME OF NEW ISSUES HIT THE MARKET PROSPECTS FOR STRONGER DEMAND AND SHRINKING NEWISSUE SUPPLY IN 1993 MEAN THE MUNICIPAL MARKET RIGHT NOW IS VERY ATTRACTIVE SAYS PETER J ALLEGRINI A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON TOTAL ISSUANCE OF LONGTERM MUNICIPAL BONDS SURGED 36 IN 1992 TO A RECORD 233 BILLION ACCORDING TO THE PUBLIC SECURITIES ASSOCIATION LOW INTEREST RATES SPURRED STATE AND LOCAL GOVERNMENTS TO REFUND A LARGE PORTION OF THEIR OUTSTANDING DEBT WHICH WILL RESULT IN SUBSTANTIAL DEBT SERVICE SAVINGS SAID HEATHER L RUTH PRESIDENT OF THE NEW YORK TRADE GROUP IN 1993 HOWEVER LONGTERM ISSUANCE WILL DROP 21 TO ABOUT 185 BILLION THE ASSOCIATION PREDICTS TOTAL LONGTERM AND SHORTTERM VOLUME IN 1992 ROSE 30 TO ABOUT 274 BILLION THE PUBLIC SECURITIES ASSOCIATION ESTIMATES LONG TERM IS DEFINED BY THE ASSOCIATION AS ANY BOND ISSUED FOR 13 MONTHS OR MORE THE PRIOR RECORD OF 245 BILLION WAS SET IN 1985 WHEN ISSUANCE SOARED AS MUNICIPALITIES RUSHED TO SELL ISSUES TO BEAT PENDING TAX LEGISLATION MERRILL LYNCH & CO ESTIMATES MORE THAN 40 BILLION OF MUNI ISSUES WILL MATURE OR BE CALLED IN 1993 MUNI BONDS TYPICALLY ARE ELIGIBLE TO BE CALLED OR REDEEMED 10 YEARS AFTER THEY ARE ISSUED MUCH OF THAT AMOUNT IS LIKELY TO BE REINVESTED IN MUNICIPALS ESPECIALLY IN LIGHT OF LIKELY TAXLAW CHANGES A MERRILL REPORT PREDICTS MANY STRATEGISTS URGE INVESTORS TO BE CAUTIOUS AND BUY ONLY BONDS WITH STRONG CREDIT RATINGS THE STRATEGISTS SAY THE YIELDS ON LOWERRATED ISSUES SUCH AS THOSE RATED BELOW SINGLEA AREN'T NEARLY HIGH ENOUGH TO JUSTIFY THE ADDED RISKS YOU'RE NOT BEING PAID ENOUGH RIGHT NOW TO BUY LOWRATED BONDS SAYS SUSAN C HEIDE DIRECTOR OF CREDIT RESEARCH AND A PORTFOLIO MANAGER AT OFFITBANK AN INVESTMENT MANAGEMENT COMPANY IN NEW YORK GRIM HEADLINES ABOUT THE WOES OF STATE AND LOCAL GOVERNMENTS PROMPTED MORE INVESTORS LAST YEAR TO BUY MUNIS BACKED BY INSURANCE COMPANIES THE PUBLIC SECURITIES ASSOCIATION ESTIMATES INSURED ISSUANCE ROSE TO A RECORD 77 BILLION FROM ABOUT 52 BILLION IN 1991 THE TOPPERFORMING MUNICIPAL BOND MUTUAL FUND IN THE 12 MONTHS ENDED NOV 30 WAS THE STRONG INSURED MUNICIPAL BOND FUND WITH A TOTAL RETURN OF 1501 ACCORDING TO LIPPER ANALYTICAL SERVICES INC MUTUAL FUNDS REMAIN THE MOST POPULAR WAY FOR INDIVIDUAL INVESTORS TO OWN MUNIS BECAUSE THEY OFFER DIVERSIFICATION PROFESSIONAL MANAGEMENT CONVENIENCE AND LIQUIDITY IN THE 12 MONTHS ENDED NOV 30 GENERAL MUNICIPAL BOND FUNDS PRODUCED THE BEST RESULTS OF ANY GROUP WITH A 988 TOTAL RETURN ACCORDING TO LIPPER ANALYTICAL SERVICES IN SECOND PLACE WERE MUNI FUNDS THAT BUY BONDS BACKED BY INSURANCE WITH A 986 RETURN HIGHYIELD FUNDS CAME IN THIRD AT 951 FOLLOWED BY INTERMEDIATETERM FUNDS AT 881 AND SHORTTERM FUNDS AT 702 LIPPER REPORTS INDIVIDUAL INVESTORS DOMINATED THE MUNI MARKET THE PUBLIC SECURITIES ASSOCIATION SAYS INDUSTRY ANALYSTS ESTIMATE ABOUT 80 OF ALL ISSUANCE IN 1992 WAS ABSORBED BY RETAIL WHICH MEANS INDIVIDUALS AND MUTUAL FUNDS INCLUDING MONEY MARKET FUNDS AT THE END OF 1992'S SECOND QUARTER THE RETAIL SECTOR OWNED 8324 BILLION OF MUNIS OR 739 OF THE TOTAL SUPPLY OUTSTANDING THE ASSOCIATION SAYS THAT WAS UP FROM 8064 BILLION AT THE END OF 1991 WHICH REPRESENTED 73 OF TOTAL SUPPLY SOME REVENUE BONDS DUE IN 25 YEARS NOW YIELD ABOUT 625 ACCORDING TO DELPHIS HANOVER CORP IN SOUTHBURY CONN FOR AN INVESTOR IN THE 31 FEDERAL TAX BRACKET THAT SAME MUNICIPAL BOND WOULD BE THE EQUIVALENT OF A FULLY TAXABLE BOND YIELDING JUST OVER 9 IF CONGRESS RAISES THE TOP BRACKET TO 36 THAT SAME MUNICIPAL BOND WOULD BE THE EQUIVALENT OF A FULLY TAXABLE BOND YIELDING MORE THAN 975 AND ALL THIS IS BEFORE ANY STATE AND LOCAL TAXES 9301040068 930104 YEAREND REVIEW OF STOCK MARKET FOLLIES FOIBLES & FUMBLES BY WILLIAM POWER THE STOCK MARKET WAS RATHER HOHUM IN 1992 BUT WALL STREET'S CAST OF CHARACTERS DID ITS DARNEDEST TO STIR THINGS UP AS USUAL THE JOURNAL KEPT TRACK OF THE YEAR'S MORE LUDICROUS MOMENTS IN INVESTING SOME HIGHLIGHTS AS IF WALL STREET DIDN'T ALREADY HAVE PROBLEMS WITH SEXISM A WALL STREETAREA TOPLESS CLUB BOUGHT A LARGE ADVERTISEMENT RIGHT IN THE CENTER OF THE NASDAQ STOCK LISTINGS IN THE NEW YORK POST STOCKBROKERS ARE AN EXCELLENT AUDIENCE FOR US EXPLAINS TOM PERAZA MARKETING DIRECTOR OF NEW YORK DOLLS ONE REASON HE SAYS THEY KNOW A GOOD VALUE ONE NASDAQ EXECUTIVE SAID THAT AT LEAST IT SHOWS THE MARKET'S LISTINGS ARE THE PLACE TO BE PERHAPS GEORGE BUSH AND HIS RUNNING MATE SHOULD HAVE SEEN IT COMING BEFORE THE ELECTION DAN QUAYLE ARRIVED TO VISIT THE NEW YORK STOCK EXCHANGE TRADING FLOOR BUT GOT A LESSTHANVICEPRESIDENTIAL RECEPTION HE AND THE SECRET SERVICE AGENTS WERE KEPT WAITING OUTSIDE BY BIG BOARD SECURITY GUARDS UNTIL SOMEONE OFFICIAL COULD COME DOWN AND ACCOMPANY HIM IF YOU'RE LOOKING FOR MAMMOTH EGOS ON WALL STREET LOOK NO FURTHER THAN THE RIVAL INVESTMENT BANKING FIRMS BEAR STEARNS AND LAZARD FRERES IN NOVEMBER EACH TOOK CREDIT IN SEPARATE NEWSPAPER TOMBSTONE ADS FOR INITIATING THE SAME CORPORATE ACQUISITIONBEAR STEARNS REPRESENTING FRANK B HALL & CO THE SELLER AND LAZARD REPRESENTING AON CORP THE BUYER NO ONE COULD PROVE WHICH SIDE ACTUALLY STARTED THE DEAL BUT THERE STOOD BOTH CLAIMS SIDEBYSIDE IN BLACK AND WHITE A FOOTNOTE WHEN AON'S CREDIT RATINGS WERE LOWERED BY MOODY'S INVESTORS SERVICE BECAUSE OF THE FINANCIAL STRAINS OF THE DEAL NEITHER INVESTMENT BANK TOOK CREDIT FOR THAT A CHICAGO BOARD OF TRADE COMMITTEE IN A REPORT IN SEPTEMBER ON HOW TO SERVE CUSTOMERS SAID ONE OF THE EXCHANGE'S MAIN GOALS SHOULD BE TO ENCOURAGE FLASHING ON THE AGRICULTURAL TRADING FLOOR THE REPORT COMPLAINED THAT A STUDY OF FLOOR TRADERS SEEMS TO INDICATE THAT FLASHING IS DISCOURAGED OR EVEN PROHIBITED ASKED IF THE EXCHANGE GOT ANY WEIRD RESPONSES TO THE FLASHING SUGGESTION WHICH ACTUALLY REFERS TO HAND SIGNALS USED BY TRADERS NOT LEWD DISPLAYS A SPOKESMAN SMIRKED YOU DO REALIZE EVERYONE IN THE BOND PIT HAS TO WEAR A LONG RAINCOAT NO PANTS WE DO HAVE RULES HERE WHAT IF WE DID THIS WITH THEIR PAYCHECKS THIS IS SUPPOSED TO BE THE COMPUTER AGE ON WALL STREET BUT YOU WOULDN'T KNOW IT FROM WHAT HAPPENED WHEN BERKSHIRE HATHAWAY INC IN NOVEMBER BECAME THE FIRST STOCK TO HIT 10000 A SHARE THE NEW YORK STOCK EXCHANGE DESPITE ITS MULTIMILLIONDOLLAR COMPUTER SYSTEM APPARENTLY COULDN'T SPEW OUT A FIVEDIGIT PRICE ON ITS TICKER FEED WITHOUT MANUALLY ENTERING IT EACH TIME SO THE BIG BOARD DECIDED TO JUST LOP OFF THE FIRST TWO DIGITS A TRADE AT 10700 FOR EXAMPLE IS REPORTED BY THE BIG BOARD AND STOCKQUOTE MACHINES AS 700 IT'S SHORTHAND SAYS THE EXCHANGE SOME TRADERS GROUSE THAT IT SERVES BERKSHIRE HATHAWAY RIGHT FOR NOT SPLITTING ITS STOCK LIKE EVERYONE ELSE WALL STREETERS ARE PAID TO FOCUS ON THE FINANCIAL ANGLE TO EVERY WORLD EVENT BUT SOMETIMES IT GETS A BIT RIDICULOUS WHEN THE LA RIOTS BROKE OUT IN MAY FOR EXAMPLE A MAGAZINE FOR PENSIONFUND MANAGERS SUMMED UP ALL THE MAYHEM WITH THE HEADLINE LA RIOTS TERRORIZE MONEY MANAGERS ECONOMIST EDWARD YARDENI NOTED THAT THE RIOTS WERE ALSO A CONSEQUENCE OF THE RECESSION IN A REPORT THAT INCLUDED THE HEADLINE NO RIOT AT THE FED PRUDENTIAL SECURITIES MADE ONE OF THE YEAR'S WORST TYPOS IN A RESEARCH REPORT BUT AT LEAST THE FIRM ADMITTED IT THE MAIN HEADLINE IN PRUDENTIAL'S RESEARCH WEEKLY OF NOV 23 ASSURED INVESTORS MIDEAST INSTABILITY COULD STABILIZE OIL PRICING IF THAT WERE TRUE ALL OF MIDEAST HISTORY WOULD BE CHANGED FRANTICALLY PRUDENTIAL SENT OUT A CORRECTION ADDING DE BEFORE STABILIZE THE FIRM APOLOGIZED FOR WHAT IT CALLED EVERY EDITOR'S NIGHTMARE IT'S HARD TO GET LAUGHS OUT OF FOREIGN EXCHANGE BUT HERE GOES IT WAS A TURBULENT YEAR IN THE FOREIGNCURRENCY MARKETS EUROPE'S MONETARY PROBLEMS GOT WORSE AND WORSE IN A CRISIS THAT ONLY A CURRENCY SPECULATOR COULD LOVE MAYBE THE STAGE FOR ALL THIS CONFUSION WAS SET IN EARLY JANUARY WHEN SHEARSON LEHMAN BROTHERS INC PUT OUT A REPORT ON THE SWISS FRANC AND OTHER CURRENCIES THAT PROMISED AN UPDATE ON THE SWISS FRANK A TASTY INVESTMENT 9301040067 930104 BUSINESS BRIEF BETHLEHEM STEEL CORP ROCHESTER & PITTSBURGH PAYS 56 MILLION FOR COAL ASSETS BETHLEHEM STEEL CORP CONTINUING ITS EXIT FROM NONSTEEL BUSINESSES SAID IT SOLD CERTAIN COAL ASSETS TO ROCHESTER & PITTSBURGH COAL CO FOR 56 MILLION BETHLEHEM BASED IN BETHLEHEM PA SOLD ROCHESTER & PITTSBURGH COAL ITS BETHENERGY MINES INC UNIT AND COAL RESERVES AND A MINE NEAR WASHINGTON PA ROCHESTER & PITTSBURGH BASED IN INDIANA PA SAID IT WILL UPGRADE THE MINE IDLING IT UNTIL LATE 1993 IT WILL USE THE 175 WORKERS ON THE PROJECT BY THE END OF 1996 THE MINE COULD BE CHURNING OUT 55 MILLION TONS A YEAR UP FROM TWO MILLION TONS NOW THE COMPANY ALSO SAID IT COULD OPEN A NEW MINE IN THE EXTENSIVE RESERVES IT ACQUIRED ROCHESTER & PITTSBURGH COAL NOTED THAT THE PURCHASE PRICE IS SUBJECT TO ADJUSTMENT PENDING A CLOSING AUDIT 9301040066 930104 BUSINESS BRIEF SEAGULL ENERGY CORP HOUSTON CONCERN ACQUIRES ARKLA UNIT FOR 397 MILLION SEAGULL ENERGY CORP SAID IN HOUSTON THAT IT COMPLETED THE PURCHASE OF ARKLA EXPLORATION CO A UNIT OF ARKLA INC FOR 397 MILLION RESERVES ACQUIRED ARE ESTIMATED AS OF SEPT 1 THE EFFECTIVE DATE OF THE TRANSACTION TO BE 585 BILLION CUBIC FEET OF NATURAL GAS AND 73 MILLION BARRELS OF OIL CONDENSATE AND NATURAL GAS LIQUIDS SEAGULL FINANCED THE ACQUISITION WITH A THREEYEAR 150 MILLION TERM LOAN AND A NEW 475 MILLION REVOLVING LINE OF CREDIT THAT REPLACED A 225 MILLION CREDIT FACILITY THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID PROCEEDS FROM A PREVIOUSLY ANNOUNCED PUBLIC OFFERING OF FOUR MILLION COMMON SHARES WILL BE USED TO REDUCE DEBT ASSOCIATED WITH THE ACQUISITION THE COMPANY HAD ABOUT 128 MILLION COMMON SHARES OUTSTANDING AT SEPT 30 9301040065 930104 YEAREND REVIEW OF STOCK MARKET STOCK BOND FUND MANAGERS FIND THEMSELVES IN BIG DEMAND BY GEORGE ANDERS AND WILLIAM POWER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STOCK AND BOND MANAGERS HAD A MEDIOCRE 1992 IN TERMS OF INVESTMENT PERFORMANCE BUT THEY DID MUCH BETTER IN WINNING NEW ACCOUNTS ESPECIALLY ONES THAT CONCENTRATE ON SMALLCOMPANY STOCKS WE'VE SEEN QUITE A SPIKE IN OVERALL HIRING OF MONEY MANAGERS SAID DENNIS SCANNELL A PENSION CONSULTANT AT GREENWICH ASSOCIATES HIS FIRM CALCULATES THAT 46 OF THE US'S 2000 LARGEST PENSION FUNDS FOUNDATIONS AND ENDOWMENTS HIRED AT LEAST ONE MONEY MANAGER LAST YEAR THAT'S THE MOST RAPID RATE OF NEWACCOUNT GROWTH IN AT LEAST FIVE YEARS MR SCANNELL SAYS THIS HIRING BINGE COULD HAVE INTERESTING REPERCUSSIONS IN FINANCIAL MARKETS IN THE NEW YEAR PART OF IT SIMPLY REFLECTS NORMAL REPLACEMENT LAST YEAR OF UNDERPERFORMING MONEY MANAGERS WHO WERE FIRED BUT IN ADDITION BIG CHUNKS OF NEW MONEY WERE CHANNELED TO MANAGERS WHO SPECIALIZE IN SMALLCOMPANY STOCKS AND FOREIGN STOCKS MEANING THAT PRICES FOR THOSE TYPES OF SECURITIES COULD GET A LIFT IN COMING MONTHS RESURGENT SMALLSTOCK MANAGERS CAN HARDLY WAIT SCOTT BLACK WHO MANAGES 500 MILLION OF MOSTLY SMALLCOMPANY AND MEDIUMCOMPANY INVESTMENTS AT DELPHI MANAGEMENT IN BOSTON SAYS HE ADDED ON NEW INSTITUTIONAL CLIENTS LAST YEARAFTER MANY HAD DESERTED HIM IN 1991 LAST YEAR HIS SMALLCAP ACCOUNTS ROSE MORE THAN 20 AND HE IS COUNTING ON AN ECONOMY RECOVERY IN 1993 TO CONTINUE THE GOOD TIMES THE REASON SMALLCAPS PROBABLY WILL DO BETTER IN A CYCLICAL RECOVERY IS THAT THE SAME DYNAMICS THAT MAY MAKE A FORD MOTOR GO UP 20 OR 25 WILL TAKE MANY OF THESE SMALLCAPS AND PUSH THEM UP 50 TO 100 THE OPERATING LEVERAGE IS MUCH GREATER WITH THESE SMALLCAPS FOR 1992'S FIRST THREE QUARTERS INVESTMENT MANAGERS WHO CONCENTRATE ON US STOCKS POSTED A MEDIAN GAIN OF JUST 15 ON THEIR PORTFOLIOS ACCORDING TO SEI CORP A PENSIONCONSULTING FIRM THAT'S A PERCENTAGE POINT BELOW THE 25 RETURN IN THE BENCHMARK STANDARD & POOR'S 500STOCK INDEX IN THE PERIOD A MARKET RALLY LATE IN THE YEAR PARTICULARLY IN SMALL STOCKS HELPED MANAGERS FINISH 1992 IN SOMEWHAT BETTER SHAPE ACCORDING TO THE INDATA UNIT OF GORDON HASKETT & CO A SAMPLE OF 1242 STOCK MANAGERS HAD A MEDIAN GAIN OF 83 THROUGH DEC 24 NEARLY IDENTICAL WITH THE 85 RETURN IN THE S&P MANY SMALL STOCKS AREN'T INCLUDED IN THE S&P BUT ARE OWNED BY MONEY MANAGERS WHEN THESE SMALL STOCKS SURGE MONEY MANAGERS HAVE A BETTER CHANCE OF OUTPERFORMING THE MARKET AVERAGES DELPHI'S MR BLACK SAYS A LOT OF THE SMALL AND MEDIUM STOCKS HE IS BUYING ARE CYCLICAL OR ECONOMYSENSITIVE INDUSTRIAL COMPANIES INCLUDING BELL INDUSTRIES MONARCH MACHINE TOOL TEXAS INDUSTRIES ALTRON VARITRONIC SYSTEMS AND DETECTION SYSTEMS NOBODY HAS EVER HEARD OF HALF OF THESE COMPANIES HE SAYS THEY'RE ALL SELLING BELOW BOOK VALUE AND EARNINGS ARE STARTING TO TURN POSITIVE HE WARNS AGAINST RANDOMLY BUYING ANY SMALL STOCK THOUGH ESPECIALLY OVEREXTENDED ONES SELLING AT TWO TIMES BOOK VALUE OR 20 TIMES EARNINGS IN THE BOND MARKETS MONEY MANAGERS RECORDED A MEDIAN GAIN OF 77 ON THEIR PORTFOLIOS THROUGH SEPT 30 ACCORDING TO SEI THAT WAS SLIGHTLY AHEAD OF THE 73 ADVANCE IN THE SALOMON BROAD INVESTMENT GRADE INDEX BUT THE GAIN DIDN'T AMOUNT TO ONE OF BOND MANAGERS' BETTER SHOWINGS IN RECENT YEARS DESPITE THESE LACKLUSTER RESULTS MONEY MANAGERS HAD NO TROUBLE GAINING NEW BUSINESS ACCORDING TO EAGER & ASSOCIATES MONEY MANAGERS IN THE FIRST 10 MONTHS OF 1992 GOT 91 NEW CONTRACTS TO OVERSEE SMALLSTOCK PORTFOLIOS A 60 INCREASE FROM THE YEAREARLIER PACE THE RECENT PERFORMANCE OF SMALL STOCKS HAS BEEN VERY GOOD AND THAT'S ATTRACTING PEOPLE TO THEM SAID DAVID EAGER HEAD OF THE LOUISVILLE KY PENSIONCONSULTING FIRM THERE'S ALSO A SCHOOL OF THOUGHT HE SAYS THAT SMALLSTOCK PERFORMANCE GOES IN SIXYEAR OR SEVENYEAR CYCLES AND THAT AN UPWARD CYCLE RECENTLY BEGAN THAT IS PULLING MONEY IN AS WELL HE SAYS ALSO DRAWING ATTENTION LAST YEAR WERE NONUS STOCKS MONEY MANAGERS IN THE FIRST 10 MONTHS OF 1992 GOT 145 CONTRACTS TO MANAGE INTERNATIONAL STOCK PORTFOLIOS ABOUT EVEN WITH THE PACE IN 1991 MEANWHILE NEW CONTRACTS FOR MANAGING VALUEORIENTED STOCK FUNDS MIXED STOCKANDBOND FUNDS AND GROWTHORIENTED STOCK FUNDS ALL DROPPED SUBSTANTIALLY FROM THEIR YEAREARLIER LEVELS IN A SWITCH FROM TRADITIONAL PRACTICE THE MOST FREQUENTLY HIRED MONEY MANAGEMENT FIRMS TENDED TO BE BIG LONGESTABLISHED GROUPS RATHER THAN FASTTRACK LITTLE BOUTIQUES PUTNAM CO LED EAGER'S LIST WITH 41 NEW ASSIGNMENTS THROUGH OCT 31 FOLLOWED BY BRINSON PARTNERS WITH 30 BANKERS TRUST CO WITH 19 STATE STREET BANK WITH 18 AND SCUDDER STEVENS & CLARK WITH 15 BEING A BIG FIRM IS NO LONGER SOMETHING TO APOLOGIZE FOR SAYS THOMAS LUCEY A SENIOR MANAGING DIRECTOR AT PUTNAM HIS FIRM WOOS CLIENTS BY OFFERING THEM MULTIPLE SPECIALTIES IN STOCK AND BOND MANAGEMENT ASSET ALLOCATION CUSTODIAL SERVICES AND THE LIKE WE HAVE 210 CLIENTS AND 31 OF THEM USE US FOR MORE THAN ONE PRODUCT MR LUCEY SAYS AT THAT STAGE SIZE BECOMES AN ADVANTAGE AWAY FROM MAINSTREAM STOCK AND BOND INVESTING MONEY MANAGERS WHO SPECIALIZE IN LEVERAGED BUYOUTS AND VENTURE CAPITAL HAD A PRETTY GOOD YEAR AT LEAST IN THEIR FUNDRAISING EFFORTS THESE MONEY MANAGERS RAISED 84 BILLION IN 1992 UP 32 FROM 64 BILLION THE YEAR EARLIER ACCORDING TO PRIVATE EQUITY ANALYST A WEST NEWTON MASS NEWSLETTER TWO THINGS TRIGGERED THE BIG INCREASE SAYS STEVEN P GALANTE THE NEWSLETTER'S EDITOR FIRST THERE WERE MANY HIGHLY REGARDED MANAGERS COMING OUT WITH THESE PARTNERSHIPS LAST YEAR ALSO INVESTORS WERE CHEERED BY THE STRENGTH OF THE MARKET FOR INITIAL PUBLIC STOCK OFFERINGS WHICH ALLOWED LBO AND VENTURECAPITAL INVESTORS TO CASH OUT OF INVESTMENTS MADE SEVERAL YEARS AGO THE IPO MARKET THE PAST 18 MONTHS HAS VINDICATED THE DECISIONS THAT INSTITUTIONAL INVESTORS MADE FIVE YEARS AGO TO GET INTO BUYOUT FUNDS AND VENTURE FUNDS IN A BIG WAY SAYS MR GALANTE I THINK 1993 IS ALSO GOING TO BE A GOOD YEAR FOR THESE KIND OF PARTNERSHIPS SHORTSELLERS BY AND LARGE REBOUNDED FROM A DISMAL 1991 TO SHOW GAINS LAST YEAR ACCORDING TO A SURVEY BY FRANK RUSSELL CO MAJOR SHORTSELLING PARTNERSHIPS SHOWED AVERAGE GAINS OF 122 FOR THE FIRST THREE QUARTERS OF 1992 AFTER FEESTHOUGH MANY SHORTSELLERS APPARENTLY GAVE UP MUCH OF THOSE GAINS NEAR YEAR END SHORTSELLERS TARGET STOCKS THAT THEY THINK WILL FALL IN PRICE THEY DO SO BY BORROWING SHARES AND SELLING THEM HOPING TO BE ABLE TO BUY BACK THE STOCK LATER AT A LOWER PRICE OVERALL SHORTSELLING WAS NO BETTER NO WORSE THAN ANY OTHER STRATEGY IN 1992 SAYS MICHAEL LONG A GENERAL PARTNER AT ROCKBRIDGE PARTNERS WHICH TRACKS SHORTSELLING PERFORMANCE THE BIG LOSERS LAST YEAR WERE MONEY MANAGERS WHO SPECIALIZED IN REAL ESTATE THE TYPICAL REALESTATE PORTFOLIO SKIDDED 66 IN VALUE IN THE YEAR ENDED SEPT 30 ACCORDING TO FRANK RUSSELL CO THAT MARKED THE SECOND CONSECUTIVE YEAR OF LOSSES IN REAL ESTATE AND FEW PEOPLE ARE EXPECTING MUCH OF A TURNAROUND THIS YEAR 9301040064 930104 NEW STOCK LISTINGS NEW YORK THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING AND NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED ONE INITIAL PUBLIC OFFERING THE AMERICAN STOCK EXCHANGE BEGAN TRADING ADVANCED PHOTONIX INC CAMARILLO CALIF A DEVELOPER OF PHOTODETECTOR DEVICES AND RELATED ELECTRONICS WHICH MOVED UP FROM THE EMERGING COMPANY MARKETPLACE TO THE PRIMARY MARKET UNDER API THE NATIONAL MARKET SYSTEM BEGAN TRADING SHARES OF FINANCIAL SECURITY CORP CHICAGO A HOLDING COMPANY FORMED IN CONNECTION WITH THE CONVERSION OF SECURITY FEDERAL SAVINGS & LOAN ASSOCIATION OF CHICAGO FROM MUTUAL TO STOCK FORM OF OWNERSHIP UNDER FNSC THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS IN BRODERBUND SOFTWARE INC NOVATO CALIF THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS IN STARBUCKS CORP SEATTLE 9301040063 930104 LETTERS TO THE EDITOR PLAN COVERS ALL ASPECTS OF LOAN ADMINISTRATION THE US GENERAL ACCOUNTING OFFICE HAS MADE A BLATANTLY INCORRECT STATEMENT IN AN INTERVIEW ABOUT OUR LANDMARK REPORT INTERNAL CONTROLINTEGRATED APPROACH GAO CRITICIZES ACCOUNTING GROUP'S PLAN TO FIGHT CORPORATE FRAUD AS TOO WEAK DEC 2 THE ARTICLE QUOTES A GAO OFFICIAL AS SAYING THE GUIDELINES IN OUR REPORT ONLY SUGGEST TALLYING LOAN LOSSES BUT DON'T EXAMINE THE UNDERLYING LOANADMINISTRATION CREDIT AND BORROWERASSESSMENT SYSTEMS THAT CAUSED THESE LOSSES THAT'S SIMPLY NOT TRUE OUR REPORT DEFINES INTERNAL CONTROL AS A PROCESS DESIGNED TO ACHIEVE OPERATIONS OBJECTIVES FINANCIAL REPORTING OBJECTIVES AND COMPLIANCE OBJECTIVES UNDER OUR DEFINITION CONTROLS OVER THE GRANTING OF LOANS ARE OPERATIONS CONTROLS CONTROLS OVER THE REPORTING OF LOAN LOSSES ARE FINANCIAL REPORTING CONTROLS CONTROLS OVER THE CONFORMITY OF LOANS WITH LAWS AND REGULATIONS ARE COMPLIANCE CONTROLS NONE CAN BE NEGLECTED BY MANAGEMENT AND OUR REPORT MAKES THAT CLEAR WE BELIEVE OUR REPORT WILL MAKE A MAJOR CONTRIBUTION TO THE IMPROVEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROLS 9301040062 930104 LETTERS TO THE EDITOR LET ECONOMIC DEBATE ENTER THE REAL WORLD IN HIS DEC 21 EDITORIAL PAGE ARTICLE WHO SPEAKS FOR THE MARKET HERBERT STEIN WARNS THAT IF LAURA TYSON THE NEW CHAIRPERSON OF THE COUNCIL OF ECONOMIC ADVISERS ACCEPTS THE PROPOSITION THAT THE CASES FOR AND AGAINST INTERVENTION HAVE EQUAL PROBABILITY OF BEING VALID SHE WILL LOSE TO OTHER CLAIMANTS WHO HAVE JUST AS SOPHISTICATED ANALYSTS AND MUCH MORE POLITICAL CLOUT THAN SHE I SUGGEST THAT IF MS TYSON FOLLOWS MR STEIN'S EXAMPLE OF BASING PROMARKET RHETORIC ON AN ALMOST THEOLOGICAL ASSERTION THAT MARKETS ARE EFFICIENT THEN THE MARGINALIZATION OF THE CEA THAT MR STEIN FINDS SO WORRYING CAN ONLY CONTINUE YES MARKET FAILURE DOES OCCUR BUT SO TOO DOES GOVERNMENT FAILURE MS TYSON SHOULD BASE POLICY RECOMMENDATIONS ON THE REALIZATION THAT MARKET FAILURE ALONE DOES NOT JUSTIFY GOVERNMENT INTERVENTION GOVERNMENT INTERVENTION CANNOT ACTUALLY BE IMPLEMENTED AS EFFICIENTLY AS WOULD BE THE CASE IN A PLANNER'S IDEAL WORLD AND THIS FAILURE MUST BE WEIGHED AGAINST FAILURES OCCURRING IN THE MARKET THE TIME IS LONG OVERDUE FOR BOTH SIDES OF THE DEBATE TO ADMIT THAT IN THE REAL WORLD THERE ARE NEITHER PERFECT MARKETS NOR PERFECT GOVERNMENT INTERVENTIONS 9301040061 930104 BUSINESS BRIEF ULTRALIFE BATTERIES INC FIRM COMPLETES INITIAL OFFER OF 2 MILLION COMMON SHARES ULTRALIFE BATTERIES INC NEWARK NY SAID IT COMPLETED ITS INITIAL PUBLIC OFFERING OF TWO MILLION SHARES OF COMMON STOCK AT 975 EACH THROUGH A GROUP OF UNDERWRITERS LED BY PENNSYLVANIA MERCHANT GROUP LTD IN A PRESS RELEASE THE COMPANY SAID THE TOTAL INCLUDES THE EXERCISE OF THE UNDERWRITERS' OVERALLOTMENT OPTION OF 262500 SHARES ULTRALIFE A MAKER OF LITHIUM BATTERIES SAID IT INTENDS TO USE THE PROCEEDS FOR MARKETING AND DISTRIBUTION PURCHASE OF PRODUCTION EQUIPMENT RESEARCH AND DEVELOPMENT EXPANSION OF PRODUCT LINE AND GENERAL CORPORATE PURPOSES THE COMPANY ALSO SAID INTERMAGNETICS GENERAL CORP ACQUIRED 507958 COMMON SHARES FOR 3 MILLION UNDER AN AGREEMENT BETWEEN THE TWO COMPANIES 9301040060 930104 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 5 HIGH 1/4 LOW 1/2 NEAR CLOSING BID 1 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 330 30 TO 44 DAYS 328 45 TO 89 DAYS 330 90 TO 149 DAYS 335 150 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 346 30 DAYS 344 60 DAYS 344 90 DAYS CERTIFICATES OF DEPOSIT 280 ONE MONTH 286 TWO MONTHS 288 THREE MONTHS 3 SIX MONTHS 326 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 325 ONE MONTH 335 THREE MONTHS 355 SIX MONTHS BANKERS ACCEPTANCES 316 30 DAYS 318 60 DAYS 323 90 DAYS 328 120 DAYS 331 150 DAYS 333 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON INTERBANK OFFERED RATES LIBOR 3 5/16 ONE MONTH 3 7/16 THREE MONTHS 3 5/8 SIX MONTHS 4 1/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 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 DECEMBER 28 1992 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 322 13 WEEKS 338 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 795 60 DAYS 804 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4875 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 797 60 DAYS 806 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 560 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 289 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301040059 930104 TECHNOLOGY BRIEF CYTOGEN CORP US APPROVAL OF PRODUCTS LEADS TO NARROWING OF LOSS CYTOGEN CORP PRINCETON NJ SAID GOVERNMENT APPROVAL OF TWO CANCERDETECTION PRODUCTS LAST WEEK WILL REDUCE ITS LOSS FOR THE FOURTH QUARTER THE FOOD AND DRUG ADMINISTRATION'S APPROVAL OF CYTOGEN'S ONCOSCINT CANCERDETECTION PRODUCTS TRIGGERED A ONETIME 2 MILLION MILESTONE PAYMENT TO CYTOGEN FROM KNOLL PHARMACEUTICALS WHICH IS OWNED BY BASF AG AND ITS KNOLL AG UNIT KNOLL WILL COPROMOTE THE PRODUCT WITH CYTOGEN IN THE US IN THE QUARTER ENDED JAN 2 CYTOGEN SAID ITS LOSS NARROWED TO 26 MILLION OR 13 CENTS A SHARE FROM 31 MILLION OR 19 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 48 MILLION FROM 5 MILLION IT SAID FOR THE YEAR THE BIOPHARMACEUTICAL COMPANY SAID ITS LOSS NARROWED TO 129 MILLION OR 75 CENTS A SHARE FROM 153 MILLION OR 98 CENTS A SHARE IN 1991 REVENUE INCREASED TO 165 MILLION FROM 109 MILLION IN NATIONAL OVERTHECOUNTER TRADING THURSDAY CYTOGEN FELL 25 CENTS TO 22 9301040058 930104 NO EXIT MASSLIABILITY SUITS CAN TRAP MINOR PLAYERS THAT PREFER TO SETTLE FELLOW DEFENDANTS FORCE SMALL DUMPER OF TOXINS INTO A LITIGATION MORASS A WASTE PIT STAYS HAZARDOUS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL FOR MINOR PLAYERS IN MAJOR LAWSUITS LITIGATION IS GETTING TO BE LIKE THE RABBIT IN BATTERY COMMERCIALS IT JUST KEEPS GOING THREE YEARS AGO JEANE LAIR SLIPPED CHECKS TOTALING 205931 INTO ENVELOPES CONFIDENT THAT SHE HAD SEALED A PAINFUL CHAPTER IN HER EMPLOYER'S HISTORY THE FUNDS WERE JONESBLAIR CO'S PAYMENTS TO THE US GOVERNMENT TO RESOLVE ITS ROLE IN A MESSY WASTECLEANUP CASE THAT HAD DOGGED THE DALLAS PAINT MAKER SINCE 1984 MS LAIR A SECRETARY ELATEDLY PHONED THE COMPANY TREASURER AFTER SHE SENT THE CHECKS THEY'RE IN THE MAIL SHE TOLD HIM IT'S OVER IT WASN'T JONESBLAIR'S FELLOW DEFENDANTS QUICKLY DRAGGED IT BACK INTO COURT OBJECTING TO PARTS OF ITS SETTLEMENT AND DEMANDING PAYMENT FOR DEFENSE WORK DONE BY PARTIES THAT HADN'T SETTLED YET DURING THE NEXT THREE YEARS THE PAINT MAKER WAS FORCED TO KEEP PAYING ITS OWN LAWYERS AND HAD TO HELP PAY A LAWYER ASSIGNED BY THE COURT OSTENSIBLY TO SIMPLIFY THE CASE A LAWYER WHO ON ONE OCCASION WOULD DEMAND FEES FOR ACTING AGAINST THE COMPANY'S WISHES JONESBLAIR'S PLIGHT IS ALL TOO FAMILIAR TO COMPANIES THAT FIND THEMSELVES TRAPPED AS MINOR DEFENDANTS IN MASSLIABILITY SUITS IN TOXICWASTE CLEANUP CASES IN PERSONALINJURY CASES OVER ISSUES SUCH AS ASBESTOS CONTAMINATION AND IN BIG PRODUCTLIABILITY CASES MINOR PLAYERS OFTEN SETTLE WITH PLAINTIFFS ONLY TO HAVE CODEFENDANTS PULL THEM BACK IN DEMANDING THAT THEY PAY MORE IN DAMAGES OR IN POOLED DEFENSE COSTS THE LEGAL BURDENS CAN SAP SMALL COMPANIES' RESOURCES AND THE LEGAL SPARRING CAN MEAN MORE MONEY IS SPENT ON DEFENSE COSTS THAN ON DAMAGES SINCE THE FEDERAL SUPERFUND LAW WAS ENACTED IN 1980 TO HELP CLEAN TOXICWASTE SITES ACCORDING TO A 1992 RAND CORP STUDY INSURERS HAVE SPENT AN AVERAGE OF ALMOST 90 OF THEIR SUPERFUNDRELATED OUTLAYS ON LEGAL FEES AND RELATED COSTS NOT ON CLEANUP SO MANY RESOURCES ARE SQUANDERED IN THESE CASES SAYS GEORGE PRIEST A YALE LAW SCHOOL PROFESSOR THAT LITIGANTS BEGIN TO LOOK AS IF THEY ARE SIMPLY DIGGING HOLES AND FILLING THEM BACK UP AGAIN THE LEGAL HASSLES FOR BIT PLAYERS IN MASSLIABILITY SUITS ARE PARTICULARLY ACUTE IN THE MANY STATES WHERE LAWS HOLD THAT A PARTY CONTRIBUTING EVEN SLIGHTLY TO A PROBLEM CAN FACE JOINT LIABILITY FOR ALL THE DAMAGES UNDER JOINTLIABILITY LAWS THEORETICALLY YOU COULD BE RESPONSIBLE FOR ONEMILLIONTH OF THE PROBLEM AND IF YOU WERE THE ONLY SOLVENT PARTY YOU COULD PAY FOR THE WHOLE THING SAYS RICHARD REVESZ A LAW PROFESSOR AT NEW YORK UNIVERSITY PLAINTIFFS IN MASSLIABILITY SUITS ARE OFTEN SUING MORE DEFENDANTS PER CASE BECAUSE THEY CAN'T DETERMINE WHO CAUSED A PARTICULAR INJURY THEN RELYING ON PRETRIAL FACTFINDING TO NARROW THE FIELD SOME PLAINTIFFS ARE SUING SMALLER PLAYERS BECAUSE LARGER DEFENDANTS ESPECIALLY IN ASBESTOS CASES HAVE DECLARED BANKRUPTCY AND JOINTLIABILITY LAWS FREQUENTLY MAKE DEFENDANTS RELUCTANT TO LET THESE SMALLER PARTIES SETTLE UNTIL ALL DAMAGES HAVE BEEN COVERED LEST THE REMAINING DEFENDANTS BECOME STUCK WITH MORE THAN THEIR SHARE LAWYERS CALL THESE MASSLIABILITY CASES TAR BABIES JUST AS THE STRUGGLING BR'ER RABBIT BECOMES INCREASINGLY STUCK TO THE TARCOVERED DOLL IN UNCLE REMUS'S TALE A COMPANY THAT JUST ONCE TOUCHES A DUMP OR ASBESTOS SITE CAN BECOME CAUGHT IN A SNARE OF GROWING LIABILITY AND LEGAL EXPENSE JONESBLAIR WAS SNARED BY ITS LEGAL TAR BABY BECAUSE OF JUST FOUR DAYS OF DUMPING IN 1977 WHEN IT SENT 26400 GALLONS OF SOLVENTS AND OTHER WASTE TO THE ROYAL N HARDAGE CONTROLLED INDUSTRIAL WASTE DISPOSAL SITE IN OKLAHOMA IT DID SO WITH FULL STATE APPROVAL AND OTHERS DUMPED FAR MORE INTO THE PRIVATELY OWNED FILL CARTING IN 20 MILLION GALLONS OF WASTE BEFORE IT CLOSED IN 1980 THE 60ACRE DUMP IN THE COUNTRYSIDE ABOUT A MILE FROM THE TINY TOWN OF CRINER OKLA NOW HOLDS 18000 DRUMS OF CYANIDE PESTICIDES SOLVENTS AND OTHER TOXINS THAT THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY FEARS COULD HURT NEARBY RESIDENTS AND DAIRY FARMS THE EPA HAS SLATED THE LANDFILL FOR CLEANUP UNDER THE SUPERFUND PROGRAM WHICH SEEKS TO FIND THE NATION'S MOST HAZARDOUS CONTAMINATION SITES AND FORCE THE PRIVATE PARTIES RESPONSIBLE FOR THE WASTES TO PAY FOR CLEANUPS IN JUNE 1986 AFTER SEVERAL YEARS OF FAILED OUTOFCOURT EFFORTS TO REACH A CLEANUP AGREEMENT THE EPA SUED THE HARDAGE SITE'S OWNER AND 35 COMPANIES THAT SENT WASTE THERE BECAUSE DEFENDANTS IN SUPERFUND CASES ARE JOINTLY LIABLE THOSE SUED BY THE EPA HAVE AN INCENTIVE TO FERRET OUT POTENTIAL CODEFENDANTS THE ORIGINAL HARDAGE DEFENDANTS SEARCHED EPA DOCUMENTS STATE RECORDS AND THE DUMP'S LOGBOOKS TO FIND OTHER DUMPERS IN MAY 1987 THEY NAMED JONESBLAIR AND ABOUT 180 OTHERS MANY OF THEM MINOR PLAYERS THAT HAD CONTRIBUTED LESS THAN 1 OF THE DUMP'S WASTES JONESBLAIR CONTRIBUTED ONLY ONETENTH OF 1 THE PAINT MAKER DECIDED NOT TO FIGHT THE EPA BELIEVING A QUICK SETTLEMENT WOULD BE THE CHEAPEST ROUTE IT'S JUST LIKE GOING OUT AND TRYING TO WHIP A GUY WHO'S GOT A PISTOL SAYS THE PRIVATE COMPANY'S 84YEAROLD CHAIRMAN RW BLAIR JR YOU JUST CAN'T WIN COMPANY PRESIDENT PAUL DAGUE RETAINED A WASHINGTON ENVIRONMENTAL LAWYER TIMOTHY HARKER AND TOLD HIM TO SETTLE WITH THE EPA IN EARLY 1989 THE LAWYER APPEARED TO HAVE DONE SO AGREEING TO THE 205931 PAYMENT AS PART OF A JOINT SETTLEMENT BY MINOR DEFENDANTS THE EPA ACCEPTED THE DEAL AS DID THE OKLAHOMA CITY FEDERAL DISTRICT COURT OVERSEEING THE CASE BUT A FEW MONTHS LATER THE JUDGE IN THE CASE RULED THAT DESPITE THE SETTLEMENT THE MINOR DEFENDANTS STILL WERE POTENTIALLY LIABLE FOR MILLIONS OF DOLLARS IN COSTS INCURRED BY A DEFENSE COMMITTEE CALLED THE HARDAGE STEERING COMMITTEE A GROUP OF DEFENDANTS HAD FORMED THE COMMITTEE TO STUDY CLEANUP METHODS AND DEVELOP JOINT LEGAL STRATEGIES AND TO POOL THEIR COSTS MR HARKER A 22YEAR VETERAN OF ENVIRONMENTAL SUITS WAS ASTOUNDED BY THE JUDGE'S RULING AT THE TIME WHEN JONESBLAIR AND OTHER MINOR DEFENDANTS WERE TRYING TO SETTLE AMICABLY WITH THE EPA HE SAYS THE DEFENSE COMMITTEE WAS TAKING AN EXTRAORDINARILY CONTENTIOUS APPROACH TO LITIGATION NOW JONESBLAIR WAS BEING ORDERED TO HELP PAY FOR THAT BATTLE AIMING TO HELP MINOR DEFENDANTS SUCH AS JONESBLAIR SETTLE MORE EASILY CONGRESS ALTERED THE SUPERFUND LAW IN 1986 TO BAR DEFENDANTS THAT HAVEN'T SETTLED WITH THE EPA FROM DEMANDING ADDITIONAL CLEANUP PAYMENTS FROM THOSE THAT HAVE BUT THE LAW DOESN'T MAKE CLEAR WHETHER DEFENDANTS CAN DEMAND THAT MINOR PLAYERS THAT HAVE SETTLED HELP PAY DEFENSE COSTS FOR THOSE THAT HAVEN'T SETTLED THE PROBLEM CAN BE EVEN WORSE IN NONSUPERFUND CASES IN WHICH MINOR DEFENDANTS WHO SETTLE THEIR SHARE OF DAMAGES MAY BE LIABLE FOR ADDITIONAL DAMAGES AS WELL AS OTHER PARTIES' DEFENSE COSTS THAT THREAT OF MOUNTING LIABILITY HAS FORCED MANY MINOR DEFENDANTS TO KEEP FIGHTING DESPITE A WISH TO SETTLE IN A BALTIMORE CASE WITH 8000 PLAINTIFFS THAT HAS BECOME THE LARGEST CONSOLIDATED ASBESTOS LAWSUIT IN THE COUNTRY IN 1987 FOR EXAMPLE A PLAINTIFF IN THE CASE SUED EMPIRE ACE INSULATION MANUFACTURING CO A FAMILYOWNED 15EMPLOYEE FIRM IN BROOKLYN NY THE PLAINTIFF LATER WITHDREW THE SUIT BUT ONLY THIS SPRING WAS EMPIRE ACE RELEASED FROM JOINT LIABILITY WITH THE OTHER DEFENDANTS STEPHEN KEVELSON PARTOWNER OF EMPIRE ACE SAYS HE HAS STOPPED READING THE LEGAL DOCUMENTS THAT POUR IN FROM HUNDREDS OF SIMILAR ASBESTOS CASES IN WHICH IT IS A DEFENDANT BECAUSE HE HAS GIVEN UP HOPE FOR HIS COMPANY OUR INSURANCE HAS RUN OUT AND WE HAVE TO TAKE IT NOW ON THE CHIN HE SAYS WHICH MEANS THAT EVENTUALLY WE WILL BE OUT OF BUSINESS BECAUSE THERE IS NO WAY WE CAN HANDLE THE LEGAL COST EVEN BIG COMPANIES CAN FIND IT HARD TO SETTLE MASSLIABILITY CASES WHEN THEY ARE BIT PLAYERS AS THE EXPERIENCE OF BENJAMIN MOORE & CO SHOWS A MINOR DEFENDANT IN MORE THAN A DOZEN SUPERFUND CASES THE PAINT MAKER HAS UNSUCCESSFULLY TRIED TO SETTLE EARLY INSTEAD IT HAS BEEN DRAGGED THROUGH YEARS OF LITIGATION RUNNING UP LEGAL COSTS ROUGHLY EQUAL TO ITS PAYOUTS FOR ACTUAL CLEANUP SAYS CHARLES VAIL A VICE PRESIDENT ENVIRONMENTALISTS AND SOME LEGAL EXPERTS DEFEND THE USE OF JOINT LIABILITY CONTENDING THAT DEFENDANTS ARE BETTER ABLE TO ALLOCATE LIABILITY THAN ARE PLAINTIFFS PARTICULARLY WHEN THE PLAINTIFF IS THE GOVERNMENT IT IS FAIRER TO DEMAND DISPROPORTIONATE DAMAGES FROM MINOR DEFENDANTS THAN TO FAIL TO PAY INNOCENT VICTIMS THEY ARGUE AND THE THREAT OF JOINT LIABILITY GIVES COMPANIES A VERY COMPELLING REASON NOT TO GENERATE WASTE AND IF THEY DO GENERATE WASTE TO HANDLE IT PROPERLY IN ORDER TO AVOID THAT LIABILITY DOWN THE ROAD SAYS WILLIAM ROBERTS LEGISLATIVE DIRECTOR OF THE ENVIRONMENTAL DEFENSE FUND AN ADVOCACY GROUP INDEED JEFFREY MARTIN A LAWYER FOR THE DEFENSE COMMITTEE THAT WANTS JONESBLAIR TO SHARE ITS COSTS SAYS THAT FORCING MINOR PLAYERS IN SUPERFUND CASES TO POOL COSTS GIVES MAJOR DEFENDANTS AN INCENTIVE TO DEVELOP ALTERNATIVES TO THE EPA'S REMEDY ALTERNATIVES THAT MAY BE SAFER MORE ENVIRONMENTALLY PROTECTIVE MR MARTIN ALSO SAYS THE DEFENSE COMMITTEE PREFERRED TO SETTLE BUT COULDN'T ACCEPT MAJOR PARTS OF THE GOVERNMENT'S CLEANUP PLAN THE COMMITTEE CONTENDS THAT IT IS ENTITLED TO PAYMENTS FROM SMALL PLAYERS BECAUSE THE COURT ULTIMATELY ADOPTED ITS CLEANUP PLAN RATHER THAN THE EPA'S MORE EXPENSIVE PLAN AND BECAUSE ITS PLAN WILL BE MORE EFFECTIVE IN WARDING OFF FUTURE LIABILITY SUITS JONESBLAIR IS ONE OF ONLY TWO MINOR DEFENDANTS STILL FIGHTING THE COMMITTEE MR MARTIN SAYS JONESBLAIR ARGUING THAT ITS PAYMENTS TO THE EPA WERE BASED ON THE AGENCY'S COSTLIER PLAN FILED A COUNTERSUIT AGAINST THE DEFENSE COMMITTEE THE COMPANY ASSERTS THAT IF IT MUST PAY THE COMMITTEE THE COMMITTEE SHOULD REIMBURSE THE PAINT MAKER FOR HAVING OVERPAID THE EPA BUT FIGHTING HAS SEEMED ONLY TO DRAW JONESBLAIR DEEPER INTO LITIGATION EXPENSES A FEDERAL JUDGE FORCED THE MINOR DEFENDANTS TO HIRE A SOCALLED LIAISON COUNSEL A SINGLE LAWYER TO REPRESENT THEM ALL SO THAT THE COURT DOESN'T HAVE TO DEAL WITH SCORES OF LAWYERS SUCH COURTORDERED STREAMLINING TECHNIQUES HAVE BECOME COMMON IN MASSLIABILITY CASES BUT JONESBLAIR STILL PAYING MR HARKER'S LAW FIRM WAS RELUCTANT TO PAY ANOTHER LAWYER THE COMPANY'S RELUCTANCE TURNED TO FURY IN EARLY 1991 WHEN OVER JONESBLAIR'S OBJECTIONS THE LIAISON COUNSEL URGED THE JUDGE IN THE CASE TO FORCE THE PAINT MAKER TO SETTLE WITH THE STEERING COMMITTEE BY PAYING 26400 THE JUDGE AGREED ENTERING AN ORDER ENFORCING THE SETTLEMENT TWO MONTHS LATER JONESBLAIR RECEIVED A 4938 BILL FOR THE LIAISON COUNSEL'S WORK ON THE ACTION OVERALL THE LIAISON COUNSEL CHARGED US 20000 TO SAY WE OWED ANOTHER 26400 COMPLAINS MR BLAIR THE COMPANY APPEALED THE JUDGE'S ORDER AND THE CASE IS NOW BEFORE THE TENTH US CIRCUIT COURT OF APPEALS IN DENVER JONESBLAIR'S INSURANCE WON'T COVER ITS EXPENSES IN THE CASE SO ANY PAYMENTS MUST COME FROM THE COFFERS OF THE COMPANY A FIRM WITH ABOUT 70 MILLION IN ANNUAL REVENUE AND 450 EMPLOYEES ITS TAB SO FAR 300000 INCLUDING 62000 IN COSTS INCURRED AFTER IT SETTLED WITH THE GOVERNMENT IN 1989 THE COMPANY SAYS ITS LAWYER WAS OUTRAGED ENOUGH TO WAIVE ABOUT 70000 IN OTHER FEES MR DAGUE JONESBLAIR'S PRESIDENT SAYS HE SPENT ABOUT 10 OF HIS TIME ON THE CASE BETWEEN 1987 AND 1991 HE NOTES THAT SUCH DIVERSIONS ARE ESPECIALLY BURDENSOME TO SMALLER COMPANIES WHEN LARGER COMPANIES ARE SLAPPED WITH A LAWSUIT THEY JUST SEND IT DOWN TO LEGAL' WELL WE DON'T HAVE ANY LEGAL' HE SAYS SIMILAR CONCERNS ARE BEHIND A GROWING CALL FOR REFORM OF LAWS GOVERNING MASSLIABILITY SUITS SEVEN STATES HAVE ABANDONED JOINT LIABILITY AND MORE THAN 20 OTHERS DON'T APPLY IT IN CERTAIN SITUATIONS OREGON FOR EXAMPLE NO LONGER HOLDS A DEFENDANT JOINTLY LIABLE IN MOST CASES IF IT IS RESPONSIBLE FOR LESS THAN 15 OF THE DAMAGE SOME OTHER STATES INCLUDING CALIFORNIA HAVE PASSED LAWS BARRING MOST DEFENDANTS FROM SEEKING MONEY FROM CODEFENDANTS THAT HAVE SETTLED SOME LAWYERS RECOMMEND CHANGING THE SUPERFUND LAW WHICH SUPERSEDES STATE LAWS SO THAT THE GOVERNMENT NOT DEFENDANTS WOULD ALLOCATE CLEANUP RESPONSIBILITY REP ESTEBAN TORRES OF CALIFORNIA IS SEEKING TO ENACT A FORMULA TO ALLOCATE LIABILITY AT ONE SUPERFUND SITE IN A PLAN THAT WOULD LET A DEFENDANT SETTLE FOR THE CALCULATED AMOUNT ON THE CONDITION THAT IT WAIVE ITS RIGHT TO SUE CODEFENDANTS JONESBLAIR'S EXPENSES IN THE HARDAGE CASE HAVE STOPPED SPIRALING UPWARD BUT MUCH AS RESIDUES SLOWLY COLLECT AT THE BASE OF THE PAINT MAKER'S STORAGE TANKS SMALL BILLS CONTINUE TO ALIGHT FROM LAWYERS AND AUDITORS ONE OF THESE DAYS THE SUCKER WILL GO AWAY SAYS MICHAEL FLANIGAN THE COMPANY'S TREASURER MEANWHILE AFTER EIGHT YEARS OF LEGAL WRANGLING THE CLEANUP OF THE HAZARDOUS HARDAGE DUMP HASN'T YET BEGUN 9301040057 930104 INTERNATIONAL GERMANY'S MOELLEMANN RESIGNS ECONOMICS POST BONN FACED WITH A GROWING POLITICAL SCANDAL THAT HAS CAST NEW SHADOWS OVER GERMANY'S TROUBLED GOVERNMENT ECONOMICS MINISTER JUERGEN MOELLEMANN RESIGNED YESTERDAY THE MINISTER'S PROBLEMS BEGAN BEFORE CHRISTMAS WHEN A GERMAN MAGAZINE PUBLISHED A COPY OF AN OFFICIAL LETTER WITH HIS SIGNATURE ENDORSING A PRODUCT MADE BY A FIRM HEADED BY A RELATIVE THE 47YEAROLD ECONOMICS MINISTER AT FIRST DENIED KNOWLEDGE OF THE MAILING SAYING IT WAS SENT BY AN AIDE ON PRESIGNED LETTERHEAD BUT YESTERDAY AT A NEWS CONFERENCE MR MOELLEMANN ACKNOWLEDGED HE SIGNED THE LETTER AND CALLED HIS ACTION A MAJOR BLUNDER THE SCANDAL COMES AT THE WORST POSSIBLE MOMENT FOR THE BONN GOVERNMENT GERMANY IS IN A RECESSION AND MOST ECONOMISTS SAY THE DOWNTURN IS AGGRAVATED BY MISMANAGEMENT IN THE RECONSTRUCTION OF EASTERN GERMANY THOUGH MR MOELLEMANN'S MINISTRY SHARES RESPONSIBILITY FOR EASTERN GERMANY AS WELL AS BROADER ECONOMIC PLANNING WITH MANY OTHER PARTS OF THE GOVERNMENT HIS SUDDEN RESIGNATION AND THE INTERNAL CHAOS IT BRINGS WILL MAKE IT HARDER TO FOCUS ON THE PROBLEMS CHANCELLOR HELMUT KOHL ACCEPTED MR MOELLEMANN'S RESIGNATION AND ASKED HIM TO STAY UNTIL A REPLACEMENT COULD BE FOUND THE GERMAN LEADER WAS PLANNING A CABINET RESHUFFLE AT THE END OF THIS MONTH BUT ANALYSTS SAY HE MAY HAVE TO SPEED THE PROCESS 9301040056 930104 BUSINESS BRIEF FIRST GIBRALTAR BANK SOONER FEDERAL S&L IS SOLD FOR TOTAL OF 307 MILLION BANK OF OKLAHOMA AND FOURTH FINANCIAL CORP SAID THEY COMPLETED THE ACQUISITION OF SOONER FEDERAL SAVINGS & LOAN FROM FIRST GIBRALTAR BANK FOR 307 MILLION SEPARATELY FOURTH FINANCIAL SAID IT ALSO COMPLETED THE ACQUISITION OF FOURTH NATIONAL BANK OF TULSA FOR 16 MILLION SHARES OF ITS COMMON STOCK VALUED AT 476 MILLION IN THE FIRST GIBRALTAR TRANSACTION BANK OF OKLAHOMA THE PRINCIPAL OPERATING UNIT OF BOK FINANCIAL CORP OKLAHOMA CITY PAID 165 MILLION TO ACQUIRE 19 SOONER FEDERAL OFFICES WITH ABOUT 480 MILLION IN DEPOSITS FOURTH FINANCIAL BASED IN WICHITA KAN ACQUIRED NINE SOONER OFFICES IN TULSA WITH DEPOSITS OF 340 MILLION FOR 142 MILLION FIRST GIBRALTAR CONTROLLED BY FINANCIER RONALD O PERELMAN SAID IT AGREED TO SELL THE REMAINDER OF ITS BRANCHES AND DEPOSITS TO BANKAMERICA CORP 9301040055 930104 BUSINESS BRIEF LOCKHEED CORP AIRCRAFT MAINTENANCE UNIT LAYS OFF 200 EMPLOYEES LOCKHEED CORP CALABASAS CALIF FACING BIGGERTHANEXPECTED STARTUP LOSSES AT ITS AIRCRAFT MAINTENANCE UNIT SAID IT TEMPORARILY LAID OFF NEARLY A THIRD OF THE UNIT'S 650 EMPLOYEES AND INSTITUTED PAY CUTS FOR ALL EMPLOYEES OF AS MUCH AS 10 THE LOCKHEED COMMERCIAL AIRCRAFT CENTER UNIT BASED IN SAN BERNARDINO CALIF HAS BEEN HURT BY AIRLINES DELAYING MAINTENANCE AMID A SLUMP IN AIR TRAVEL AND BY DELAYS AS A RESULT OF VARIOUS ENVIRONMENTAL ISSUES THE 200 LAIDOFF EMPLOYEES ARE EXPECTED TO RETURN TO WORK THIS MONTH WHEN ANOTHER AIRPLANE COMES IN FOR MAINTENANCE IT'S OUR INTENTION THAT IF WE CAN AT LEAST BREAK EVEN IN '93 WE WOULD THEN HOPE TO RESTORE THE PAY CUTS A SPOKESMAN SAID SEPARATELY LOCKHEED SAID IT MAY MOVE ITS LOCKHEED AIRCRAFT SERVICE CO UNIT AND 2200 EMPLOYEES OUT OF ONTARIO CALIF LOCKHEED CITED HIGH OPERATING COSTS AT THE SITE INCLUDING A RECENT RENEGOTIATION OF ITS LEASE WITH THE LOS ANGELES DEPARTMENT OF AIRPORTS WHICH WILL INCREASE ITS RENT 87 IN THE NEXT FIVE YEARS 9301040054 930104 YEAREND REVIEW OF INTERNATIONAL MARKETS EUROPE'S MIXED MARKET PERFORMANCE IS SEEN CONTINUING WILL JAPAN END ITS LOSING STREAK A WALL STREET JOURNAL NEWS ROUNDUP THE BUNDESBANK HELD MOST EUROPEAN EXCHANGES HOSTAGE LAST YEAR WHILE JAPAN'S NIKKEI INDEX WAS KEPT AFLOAT BY GOVERNMENT MEASURES IN EUROPE 1992 FORCED INVESTORS TO WEATHER WIDESPREAD POLITICAL TURBULENCE UNPRECEDENTED TURMOIL IN THE EUROPEAN COMMUNITY'S SYSTEM OF EXCHANGE RATES AND SEVERE DOUBTS ABOUT THE VIABILITY OF THE EC ITSELF ANALYSTS SAY THIS YEAR'S BEST BETS ARE COUNTRIES THAT EXPORT HEAVILY TO THE US THEY ARE EXPECTED TO DO BETTER AS THE US PULLS ITSELF OUT OF ECONOMIC DOLDRUMS HERE IS A MARKETBYMARKET SUMMARY GOVERNMENT CASH NOT THE REAL ECONOMY IS ONE OF THE FEW THINGS LIKELY TO HOLD UP THE SAGGING JAPANESE STOCK MARKET THIS YEAR OUR FINANCIAL SYSTEM IS IN ITS MOST SEVERE CRISIS SINCE THE WAR JAPAN'S FINANCE MINISTER SAID AUG 18 THAT'S WHEN FEARS OF A HARSH RECESSION HAD PUSHED DOWN THE NIKKEI STOCK AVERAGE TO 1430941 OFF 38 FROM 1992'S OPENING OF 2298377 MANY ANALYSTS GIRDED THEMSELVES FOR A PLUNGE IN THE NIKKEI AVERAGE TO BETWEEN 10000 AND 12000 BUT EMERGENCY GOVERNMENT MEASURES INCLUDING REGULATORY CHANGES AND AN INJECTION OF PUBLIC FUNDS INTO THE MARKET HELPED TO BOOST THE NIKKEI TO 1692495 BY YEAR END DOWN 26 FROM THE END OF 1991 THE PURPOSE OF ALL THIS ORCHESTRATION JAPAN'S BATTERED BANKS IN PARTICULAR NEEDED TO HAVE THE NIKKEI STAND ABOVE 16000 OR THEY WOULD HAVE BEEN FORCED TO DECLARE BIG LOSSES ON THEIR STOCK HOLDINGS THESE DAYS THE GOVERNMENT IS PROPPING UP THE MARKET IN A COUPLE OF WAYS TRADERS SAY IT PUMPS PUBLIC MONEY INTO STOCKS WHEN THE NIKKEI LOOKS WEAK 16500 SEEMS TO BE THE DANGER ZONE INVESTORS ARE ALSO COUNTING ON GOVERNMENT SPENDING ON INFRASTRUCTURE TO PULL THE JAPANESE ECONOMY OUT OF A NAGGING RECESSION IN BOTH CASES THE IDEA SEEMS TO BE TO SUPPORT THE MARKET UNTIL THE REAL ECONOMY CAN JUSTIFY PREVAILING STOCK PRICES THE CONSENSUS VIEW AMONG JAPAN'S SECURITIES FIRMS IS THAT CORPORATE EARNINGS WILL IMPROVE IN THE SECOND HALF OF 1993 AND THE MARKET WILL RISE IN ANTICIPATION OF THE UPTURN IN EARLY SUMMER ANALYSTS FIGURE AUTHORITIES CAN SPEND AS MUCH AS THREE TRILLION YEN 24 BILLION ON SECURITIES INVESTMENTS IN THE FIRST THREE MONTHS OF THIS YEAR USING BOTH EXISTING PENSION AND INVESTMENT FUNDS AND THE MONEY RAISED FOR THE AUGUST EMERGENCY MEASURES THERE WILL PROBABLY BE EVEN MORE MONEY AROUND AFTER APRIL 1 WHEN THE NEXT JAPANESE FISCAL YEAR STARTS UK MARKET PARTICIPANTS STARTED 1992 WITH NO SMALL AMOUNT OF TREPIDATION KNOWING GENERAL ELECTIONS WERE LIKELY TO BE CALLED WITHIN MONTHS WHEN THE VOTE WAS FINALLY SCHEDULED FOR APRIL THE PROSPECTS OF AN OUTRIGHT VICTORY BY THE OPPOSITION LABOR PARTY GREW BY THE DAY INCREASING THE MARKET'S SENSE OF FEAR FROM FEB 28 TO APRIL 3 A WEEK BEFORE THE ELECTION STOCK PRICES FELL ABOUT 8 ABOUT A DAY BEFORE VOTES WERE CAST THE MOOD BEGAN TO SHIFT AS POLLS FINALLY BEGAN PREDICTING SETBACKS TO THE LABOR CAMPAIGN ON APRIL 10 THE DAY AFTER PRIME MINISTER JOHN MAJOR'S CONSERVATIVE PARTY WON A MAJORITY OF SEATS IN THE HOUSE OF COMMONS SHARES SURGED ABOUT 5 A MONTHLONG RALLY FOLLOWED THE TORY VICTORY UNTIL IT EVENTUALLY BECAME APPARENT THAT THE LONGAWAITED GREEN SHOOTS OF ECONOMIC RECOVERY HIGHLIGHTED BY CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT WERE IN FACT DEAD OF FROST THE ECONOMY REMAINED IN THE DOLDRUMS THROUGH MOST OF THE YEAR WHILE THE STOCK MARKET'S MOOD WORSENED UNTIL LATE SEPTEMBER WHEN THE GOVERNMENT GAVE UP ITS FUTILE STRATEGY OF RAISING INTEREST RATES TO PROTECT THE POUND WITHIN THE EXCHANGE RATE MECHANISM THE SUBSEQUENT FLOTATION OF STERLING TRANSLATED INTO AN EFFECTIVE DEVALUATION OF ABOUT 11 AGAINST MOST OTHER MAJOR CURRENCIES AND ALLOWED BASE INTEREST RATES TO BE CUT NEARLY THREE PERCENTAGE POINTS IN LESS THAN TWO MONTHS RATES ARE NOW AT THEIR LOWEST LEVEL SINCE 1978 AND MANY ANALYSTS THINK THE ECONOMY IS POISED FOR A GRADUAL RECOVERY THE FTSE 100 INDEX ENDED THE YEAR UP 3534 POINTS OR 14 AT 28465 MAKING IT THE SECOND BEST PERFORMER OF 1992 THIS YEAR LOOKS SET TO BE ANOTHER POSITIVE ONE A POLL OF 96 FUND MANAGERS SPONSORED BY THE SECURITIES FIRM SMITH NEW COURT PLC SHOWED 70 BULLISH ABOUT UK STOCKS FOR 1993 PREDICTING THE FTSE 100 WOULD END THE YEAR AT 3020 A 61 GAIN POLITICAL TENSIONS WITH CHINA BATTERED THIS BRITISH COLONY'S STOCKS AFTER THEY RALLIED FOR MUCH OF THE YEAR BECAUSE OF THEIR LINKS TO CHINA'S ECONOMIC GROWTH HONG KONG ANALYSTS FEAR THE MARKET COULD CONTINUE TO SAG IN 1993 UNLESS THE VERBAL WAR BETWEEN BRITAIN AND BEIJING OVER THE TERRITORY'S CONSTITUTION CALMS THE HANG SENG INDEX OF 33 BLUECHIP STOCKS SOARED 43 TO 6162 ON JULY 1 LARGELY FUELED BY FOREIGN BUYING AFTER DROPPING TO 5291 IN AUGUST THE INDEX REBOUNDED TO A RECORD OF 6447 ON NOV 12 IGNORING CHINA'S ANGER OVER DEMOCRATIZATION PLANS PROPOSED BY THE COLONY'S NEWLY APPOINTED GOVERNOR BUT CHINA LASHED BACK IN MIDNOVEMBER BY INSISTING ON APPROVING ANY CONTRACTS THE GOVERNMENT SIGNS SINCE THEN THE HANG SENG HAS TUMBLED OFF ITS HIGHS IT ENDED 1992 AT 551239 UP 28 THE SITUATION MAY IMPROVE THIS YEAR NEXT MONTH HONG KONG'S LEGISLATIVE COUNCIL VOTES ON THE DEMOCRATIZATION PROPOSALS IF THOSE PROPOSALS ARE REJECTED EXPECT SHARES TO REFLECT A BETTER POLITICAL CLIMATE SAYS JAMES OSBORNE HEAD OF SALES AT BARING SECURITIES IN HONG KONG IF THE PROPOSALS ARE ACCEPTED THEN HE SAYS STOCKS COULD BE IN FOR A PARTICULARLY UNEASY TIME EVEN IF AS EXPECTED HONG KONG COMPANIES ANNOUNCE GOOD 1992 EARNINGS CANADIAN STOCK PRICES LOST GROUND LAST YEAR AS INVESTORS WORRIED ABOUT A WEAK ECONOMY CRUMBLING CURRENCY AND THE FINANCIAL HEALTH OF TWO OF CANADA'S LARGEST CORPORATE EMPIRES BUT MANY ANALYSTS PREDICT A TURNAROUND IN 1993 WITH STOCK PRICES ON THE TORONTO STOCK EXCHANGE EXPECTED TO RISE 10 TO 20 LOW INFLATION A DEVALUED CANADIAN DOLLAR AND A STRONGER US ECONOMY SHOULD BOOST EARNINGS IN CANADA'S RESOURCE AND EXPORT SECTORS THEY SAY AND THERE ARE SIGNS THAT CANADIANS FINALLY MAY BE LOOSENING THEIR WALLETS ALBEIT MORE TENTATIVELY THAN CONSUMERS IN THE US WE'RE LOOKING FOR STRONGER GROWTH STRONGER EARNINGS AND LOWER INTEREST RATES IN 1993 THAT SHOULD TRANSLATE INTO BETTER PERFORMANCE ON THE TORONTO EXCHANGE SAID NEIL JOHNSON CHIEF ECONOMIST AND PORTFOLIO STRATEGIST AT NESBITT THOMSON DEACON INC THE TORONTO STOCK EXCHANGE'S BROADLY BASED 300 COMPOSITE INDEX ENDED THE YEAR AT 335044 DOWN 46 ROBERT BOAZ CHIEF ECONOMIST AND PORTFOLIO STRATEGIST AT DEACON BARCLAYS DE ZOETE WEDD LTD PREDICTS THE TORONTO EXCHANGE'S 300 COMPOSITE INDEX IN 1993 FINALLY WILL BREAK ITS THREEYEAR STREAK OF UNDERPERFORMING THE STANDARD & POOR'S 500 MR BOAZ WHO EXPECTS THE TORONTO INDEX WILL RISE SOME 20 THIS YEAR TO 4000 SAID THE PUSH MAINLY WILL COME FROM A US RECOVERY SPURRING DEMAND FOR CANADA'S MINING AND FORESTRY PRODUCTS THE SOLUTION TO THE PROBLEM NOW IS THE US HE SAID WHAT LITTLE ROOM THERE IS FOR OPTIMISM ABOUT THE PROSPECTS OF THE FRANKFURT EXCHANGE RESTS WITH THE BUNDESBANK THE GERMAN CENTRAL BANK SPENT MOST OF 1992 FRUSTRATING MARKET PARTICIPANTS BY CONTINUING ITS TIGHT MONETARY POLICY DESPITE THE ECONOMY'S OBVIOUS SLIDE INTO RECESSION STILL THE FRANKFURT MARKET'S MOOD WAS HELPED SOMEWHAT BY A STRONG MARK A PHENOMENON FEW ANALYSTS EXPECT TO CONTINUE THIS YEAR IF THE BUNDESBANK PULLS A SURPRISE AND CUTS INTEREST RATES QUICKLY AND SHARPLY STOCKS ARE LIKELY TO PUT IN A MEDIOCRE PERFORMANCE RATHER THAN THE DISMAL ONE MANY EXPERTS ANTICIPATE FOR 1992 THE DAX INDEX ENDED OFF 21 AT 154505 PUTTING IT IN THE BOTTOM THIRD OF EUROPEAN EXCHANGES VOLUME WAS RATHER WEAK WITH PARTICIPATION BY FOREIGN INVESTORS NOTABLY LOW NEGATIVE POLITICAL EVENTS HELPED TO SET THE TONE AS RIGHTWING PERSECUTION OF IMMIGRANT GROUPS UNDERLINED THE COUNTRY'S PROBLEMATIC ABSORPTION OF EAST GERMANY A KEY TO FORTUNES THIS YEAR WILL BE SUCCESS OR FAILURE OF THE GOVERNMENT TO FORGE A SOLIDARITY PACT WITH EMPLOYERS AND LABOR THAT WOULD KEEP WAGE INCREASES MODERATE AND TAKE THE PRESSURE OFF INFLATION YET SOME BELIEVE THE RESULTS OF THE PACT MIGHT BE DISAPPOINTING POLITICAL PRESSURES TO REACH A QUICK SOLUTION TO THE SOLIDARITY PACT COULD FORCE THE GOVERNMENT TO MAKE SO MANY CONCESSIONS THAT THE AGREEMENT'S OUTCOME MAY BECOME A NEGATIVE RATHER THAN A POSITIVE FOR THE EQUITY MARKET AND THE ECONOMY SAYS LOTHAR WENIGER AN ANALYST AT SALOMON BROTHERS INC IN FRANKFURT THE ECONOMY IS ALREADY DECELERATING RAPIDLY AND RECENT DEVELOPMENTS ARE LIKELY TO PUSH GROWTH INTO CLEARLY NEGATIVE TERRITORY NEXT YEAR THE BOURSE WAS A PRISONER TO THE BUNDESBANK'S INTEREST RATE POLICY LAST YEAR THE CHAINS AREN'T EXPECTED TO BE LOOSENED THIS YEAR UNLESS FRENCH AUTHORITIES SHOCK MOST INVESTORS BY PULLING THE FRANC OUT OF THE ERM AND ALLOWING IT TO FLOAT SUCH A MOVE WOULD PROBABLY RESULT IN THE COLLAPSE OF THE WHOLE MECHANISM AND THEN ALL BETS AS TO THE FUTURE PROSPECTS OF THE CONTINENT'S ECONOMIES WOULD BE OFF POLITICS ALSO MATTER PARTICULARLY IN FRANCE WHERE THE TENSION IN THE RUNUP TO SEPTEMBER'S REFERENDUM ON THE MAASTRICHT TREATY KEPT INVESTORS ON THE SIDELINES FOR MONTHS ONCE THE TREATY WAS NARROWLY APPROVED MONEY BEGAN TO FLOW BACK IN MODEST AMOUNTS THE CAC40 INDEX FINISHED THE YEAR AT 185778 UP 52 AFTER 52 WEEKS OF THE MOST VOLATILE TRADING IN EUROPE ANALYSTS EXPLAIN THE HUGE SWINGS SEEN IN 1992 BY THE RELATIVELY LARGE PERCENTAGE OF FOREIGN INVESTORS IN THE MARKET AND THE DOMINANT WEIGHTING OF JUST A FEW STOCKS IN THE CAC40 THE MARKET'S TONE THIS YEAR WILL CONTINUE TO BE INFLUENCED BY POLITICS WITH A PARLIAMENTARY ELECTION LIKELY TO BE HELD IN MARCH POLLS ARE PREDICTING A VICTORY FOR A LOOSE CENTERRIGHT COALITION WHICH WOULD PROBABLY CONTINUE THE PRIVATIZATIONS AND PROMARKET STANCE OF PRESIDENT FRANCOIS MITTERRAND'S SOCIALIST PARTY YET COMMITMENT TO THE GOVERNMENT'S FRANC FORT POLICY OF KEEPING THE CURRENCY STRONG SEEMS TO BE UNDER STRAIN AND SOME CONSERVATIVE POLITICIANS HAVE CALLED FOR A REMOVAL OF THE FRANC FROM THE ERM TO ALLOW INTEREST RATES TO FALL SUCH A MOVE WOULD BE THE BESTCASE SCENARIO FOR FRENCH EQUITIES WHICH HAVE BEEN HELD UP BY INAPPROPRIATELY HIGH INTEREST RATES FOR NEARLY TWO YEARS JACQUELINE VIDE HEAD OF FRENCH STOCKS AT PARIBAS ASSETS MANAGEMENT IN PARIS EXPECTS INTEREST RATES TO FALL AROUND TWO PERCENTAGE POINTS BY YEAR END PROVIDING A NICE BOOST FOR BANKS AND LARGE CAPITALIZATION COMPANIES LIKE ALCATEL ALSTHOM INVESTORS ARE LOOKING FORWARD TO A BETTER YEAR ON THE AUSTRALIAN STOCK EXCHANGE THE ALL ORDINARIES SHARE INDEX TUMBLED 18 TO ITS LOW OF 1357 ON NOV 16 FROM THE BEGINNING OF 1992 THE INDEX SUBSEQUENTLY REBOUNDED TO END AT 15499 DOWN 61 SHARE PRICES WERE PRESSURED BY A FLOOD OF STOCK ISSUES FROM JANUARY TO NOVEMBER 33 COMPANIES RAISED 37 BILLION AUSTRALIAN DOLLARS US255 BILLION THROUGH INITIAL PUBLIC OFFERINGS LISTED COMPANIES RAISED AN ADDITIONAL A34 BILLION THROUGH RIGHTS ISSUES TO EXISTING SHAREHOLDERS WEAKERTHANEXPECTED ECONOMIC GROWTH ALSO DISCOURAGED MANY FOREIGN INVESTORS LAST YEAR MEXICAN STOCKS RODE A ROLLER COASTER SHARES INITIALLY SOARED WITH THE MEXICAN STOCK EXCHANGE'S IPC INDEX CLIMBING 33 TO A HIGH OF 190503 ON MARCH 3 GENERALLY INVESTORS WERE CHEERED BY ECONOMIC RESTRUCTURING THAT HAS BEEN UNDER WAY FOR SEVERAL YEARS SPECIFICALLY THEY APPLAUDED THE ECONOMIC BENEFITS THAT WOULD ACCRUE TO MEXICO UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THAT WOULD CREATE A TARIFFFREE TRADING ZONE BETWEEN THE US CANADA AND MEXICO BUT BY EARLY FALL THE MARKET HAD GIVEN UP ALL ITS 1992 GAINS AND THEN SOME ON SEPT 25 THE IPC INDEX TUMBLED TO 125210 IT HAD OPENED 1992 AT 143146 APPREHENSION THAT THE ACCORD WOULDN'T BE PASSED BY THE US AND CANADA PLUS INDIGESTION FROM TOO MANY NEW STOCK OFFERINGS TURNED EARLIER BUYERS INTO SELLERS MOST IMPORTANTLY THE MEXICAN GOVERNMENT DECIDED TO SLOW THE ECONOMY VERY DRAMATICALLY IN ORDER TO CONVERGE THE RATE OF INFLATION IN MEXICO WITH THE RATES OF INFLATION IN THE US AND CANADA SAYS DOUGLAS A CAMPBELL PRESIDENT OF DA CAMPBELL & CO A SANTA MONICA CALIF BROKER SPECIALIZING IN LATIN AMERICAN STOCKS MEXICAN SHORTTERM INTEREST RATES AS LOW AS 118 IN MARCH CATAPULTED TO 194 SIX MONTHS LATER BY YEAR END IMPROVED PROSPECTS FOR THE FREE TRADE AGREEMENT PLUS A DECLINE IN RATES ENABLED SHARES TO RECOVER MUCH OF THE GROUND THEY HAD LOST FROM THEIR HIGHS SWITZERLAND REGAINED ITS STATUS AS A HAVEN IN TIMES OF INTERNATIONAL TURMOIL THIS TIME PROFITING FROM THE PROBLEMS OF THE EC AND ITS MONETARY SYSTEM STAYING OUTSIDE THE COMMUNITY PROVED TO BE A WINNING PROPOSITION AT LEAST TEMPORARILY STOCK PRICES CONFOUNDED EXPECTATIONS AND ACTUALLY GAINED AFTER VOTERS REJECTED ON DEC 6 CLOSER RELATIONS WITH ITS NEIGHBORS UNDER THE PROPOSED EUROPEAN ECONOMIC AREA THE SWISS MARKET INDEX ENDED THE YEAR WITH THE STRONGEST GAIN IN EUROPE UP 26 AT 21070 CHANGES IN SHARE OWNERSHIP REGULATIONS THAT FORMERLY WERE BIASED AGAINST FOREIGNERS AS WELL AS MOVES TOWARD GREATER OPENNESS IN FINANCIAL REPORTING WERE CITED AS IMPORTANT REASONS FOR ZURICH'S GAINS SERGE LEDERMANN AN ECONOMIST AT THE PRIVATE BANK LOMBARD ODIER & CIE POINTS OUT HOWEVER THAT LARGE PRICE INCREASES WERE POSTED ALMOST EXCLUSIVELY BY THE MULTINATIONALS THAT DOMINATE THE SMI MANY INTERNATIONAL INVESTORS REMAIN BULLISH ON SWITZERLAND ARGUING THAT THE COUNTRY'S LOW INTEREST RATES AND MODEST PRICE/EARNINGS RATIOS CONTINUE TO MAKE THE MARKET ATTRACTIVE THE SHOCK HORROR COMMENTS ACCOMPANYING THE EEA REJECTION SEEM TO BE GROSSLY OVERDONE TO US SAYS TOM BANNATYNE AN ANALYST AT SG WARBURG SECURITIES IN LONDON ITALIAN EQUITIES ENDED THE YEAR BEARING MANY OF THE SCARS CAUSED BY AN ESPECIALLY TROUBLESOME YEAR IN ITALIAN POLITICS THE FORMATION OF A CREDIBLE GOVERNMENT AND PROGRESS TOWARD DEVISING A PACKAGE OF MEASURES TO REDUCE THE COUNTRY'S MASSIVE BUDGET DEFICIT WAS OF LITTLE HELP TO THE EXCHANGE POLITICAL FRAGMENTATION NOTABLY IN THE FORM OF SHARPLY INCREASED SUPPORT FOR THE PROTEST PARTIES OF THE NORTH ENSURED MOST FOREIGN INVESTORS STAYED AWAY FROM THE MARKET THE MILAN STOCK INDEX PUT IN THE SECONDWORST PERFORMANCE OF THE YEAR IN MAJOR MARKETS IN EUROPE FINISHING OFF 116 AT 884 THE MILAN BOURSE SET 1000 AS THE BASELINE FOR THE START OF TRADING ON JAN 3 1992 MEANWHILE GOVERNMENT DEBT AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT INCREASED TO APPROXIMATELY 1054 UP FROM 1017 IN 1991 AND 982 IN 1990 A SCHEDULED SERIES OF PRIVATIZATIONS THIS YEAR SHOULD ALSO HELP THE MOOD AS THE GOVERNMENT WILL BE TRYING TO GET INVESTORS INTERESTED IN THE MARKET POSSIBLY THROUGH THE CREATION OF TAX INCENTIVES EXPERTS RECOMMEND ONLY A HANDFUL OF STOCKS MOST OF WHICH SHOULD BE HELPED BY THE WEAKER LIRA THEY INCLUDE BENETTON SAIPEM AND GENERALI GAINS ARE LIKELY TO BE POSTED IN THE VERY LONG TERM ANDREW BELL A STRATEGIST AT BARCLAYS DE ZOETE WEDD IN LONDON SAYS HIS FIRM REMAINS NEGATIVE ON ITALIAN EQUITIES MANY ANALYSTS BELIEVE THE SPANISH ECONOMY UNDERWENT THE KIND OF DIFFICULT STRUCTURAL ADJUSTMENTS IN 1992 THAT ITALY FACES THIS YEAR FOR THAT REASON THEY ARE OPTIMISTIC THAT SPAIN IS WELL POSITIONED TO BENEFIT FROM A EUROPEWIDE DECLINE IN INTEREST RATES THE PAST YEAR WASN'T KIND TO THE MARKET WITH THE GENERAL INDEX CLOSING AT 21425 OFF 13 PRICES POSTED IMPRESSIVE GAINS FOLLOWING TWO SUCCESSIVE DEVALUATIONS OF THE PESETA IN THE SECOND HALF BUT WEREN'T ENOUGH TO MAKE UP FOR THE DECLINES EARLIER IN THE YEAR PESSIMISM IN THE MARKET INCREASED SIGNIFICANTLY FOLLOWING A REDUCTION IN THE RATING OF THE COUNTRY'S DEBT BY MOODY'S IN THE SPRING JAIME SMITH AN EQUITY SPECIALIST AT BENITO & MONJARDIN SVB SAYS THERE IS MORE ROOM TO CUT INTEREST RATES IN SPAIN THAN IN GERMANY BECAUSE THE SPANISH ECONOMY HAS BEEN SLUGGISH FOR MONTHS ANY RATE CUTS ARE LIKELY TO BE GOOD FOR SPANISH BANKS AND HIGHLY LEVERAGED COMPANIES LIKE TELEFONICA AND THE HIGHWAY CONSTRUCTION GROUPS ACESA AND AUMAR THE SPANISH MARKET IS HIGHLY SENSITIVE TO INTEREST RATES SAYS MR SMITH THAT'S WHY MADRID WAS AMONG THE WORST PERFORMERS OF 1992 PRICE/EARNINGS RATIOS IN SPAIN OF AROUND NINE COMPARE VERY FAVORABLY TO THE EUROPEAN AVERAGE OF ABOUT 15 AND SHOULD SERVE TO ENTICE BUYERS ONE NOTE OF CAUTION HOWEVER MOST SPANISH COMPANIES HAVE LITTLE TO NO EXPOSURE TO THE US MEANING THEY WILL BENEFIT LITTLE FROM THE EXPECTED US ECONOMIC RECOVERY AND THE RISE OF THE DOLLAR AND IT'S DIFFICULT TO SEE WHERE ELSE GROWTH COULD COME FROM THE DUTCH ECONOMY HAS PROVED TO BE ONE OF THE MOST RESILIENT IN EUROPE NOTABLY IN ITS ABILITY TO KEEP UP WITH HIGH GERMAN INTEREST RATES WITHOUT DRIVING ITSELF INTO A SHARP RECESSION BUT THE YEAR WASN'T A PARTICULAR CHEERFUL ONE EITHER THE CBS GENERAL INDEX FINISHED AT 19800 UP 35 THE RECOVERY IN THE US DIDN'T MATERIALIZE AS WE EXPECTED SAYS FRANK HOOGENDIJK CHIEF STRATEGIST AT PIERSON HELDRING & PIERSON NV AND JUST AS THINGS BEGAN PICKING UP IN THE US THEY STARTED TO SLOW IN EUROPE SPIRITS IN AMSTERDAM AREN'T LIKELY TO BE LIFTED UNTIL THE BUNDESBANK LOWERS INTEREST RATES AND THE EXTENT OF DUTCH ENTHUSIASM DEPENDS IN LARGE PART ON HOW DEEP THE RECESSION IN GERMANY IS WHEN THE CENTRAL BANK EASES UP THE PROSPECTS FOR THE BELGIAN ECONOMY DON'T APPEAR SIGNIFICANTLY BRIGHTER THAN THEY DO FOR GERMANY AT THE SAME TIME BELGIAN STOCKS DON'T HAVE AS MUCH EXPOSURE TO THE US AS DUTCH ONES DO WHICH WILL PROBABLY MAKE THE MARKET RATHER DULL THIS YEAR IT'S HARD TO BE OPTIMISTIC ABOUT 1993 SAYS ELISABETH DE BETHUNE AN ECONOMIST AT PETERBROECK VAN CAMPENHOUT & CIE FINANCIAL MARKETS WON'T LOOK VERY GOOD UNTIL THE ECONOMY HITS BOTTOM AND IT'S NOT YET CLEAR WHEN THAT WILL HAPPEN THE BEL20 INDEX CLOSED THE YEAR AT 112702 UP 31 AFTER A GENERALLY LACKLUSTER 12 MONTHS OF TRADING THE WEIGHT OF THE SLOWING GERMAN ECONOMY AND THE LOSS OF TRADE COMPETITIVENESS AS A RESULT OF KEEPING THE CURRENCY STRONG WITHIN THE ERM WILL PROBABLY MEAN THAT EARNINGS GROWTH CONTINUES TO BE SUBDUED ANALYSTS AT MERRILL LYNCH INTERNATIONAL ESTIMATE THE VARIOUS CURRENCY DEVALUATION IN EUROPE LAST YEAR CAUSED A 5 DETERIORATION IN COMPETITIVENESS FOR BELGIAN COMPANIES NEVERTHELESS THE ANALYSTS ARE REASONABLY POSITIVE ON THE BELGIAN EQUITIES MARKET A 25 DROP IN THE SEOUL COMPOSITE INDEX IN AUGUST CAME IN THE MIDST OF A CONFRONTATION BETWEEN THE GOVERNMENT AND TYCOONTURNED PRESIDENTIAL CONTENDER CHUNG JU YUNG THE EXCHAIRMAN OF THE GIANT HYUNDAI GROUP IN THE ROUGHANDTUMBLE WORLD OF KOREAN POLITICS THE GOVERNMENT WASN'T SHY ABOUT SLAPPING HIS BUSINESSES 17 OF WHICH ARE LISTED WITH TAX AUDITS OR REDUCED CREDIT REDUCED INTEREST RATES AND THE SLOW OPENING OF THE STOCK MARKET TO OVERSEAS INVESTORS THEN HELPED PRICES RECOVER AFTER AUGUST KOREA'S HIGHLY LEVERAGED CONGLOMERATES WELCOMED THE LOWER PRIME LENDING RATES WHICH PEAKED IN LATE 1991 AT JUST UNDER 20 THE WEIGHTED PRICE INDEX PEAKED AT 5392 LAST JANUARY AFTER OPENING 1992 AT 460067 BUT THE INDEX DRIFTED DOWNWARD UNTIL SEPTEMBER WHEN A MASSIVE SERIES OF DEFAULTS ON STOCK OBLIGATIONS BY SPECULATORS SENT IT PLUMMETING TO ITS LOW FOR THE YEAR OF 3352 SINCE THEN THE INDEX HAS BEEN STUCK AT 3500 TO 3700 WITH SPECULATORS IN RETREAT BROKERS BELIEVE THAT 1993 WILL WITNESS THE GROWTH OF A STABILIZING INSTITUTIONAL PRESENCE IN THE MARKET EARLY IN THE YEAR 11 NEW INVESTMENT TRUST COMPANIES EACH WILL RAISE FOUR BILLION TAIWAN DOLLARS US159 MILLION IN THE MARKET AND THEY COULD ISSUE NEW FUNDS AS THE YEAR PROGRESSES INDIA'S STOCK CARRIED INVESTORS FROM JOY TO DESPAIR IN 1992 AND THERE ISN'T ANY REASON TO THINK THE SCRIPT WILL CHANGE IN 1993 INDIA'S QUICKENING ECONOMIC REFORM PROGRAM SENT THE BOMBAY SENSITIVE INDEX SOARING EARLY IN THE YEAR TO A PEAK OF 454658 IN MIDAPRIL BUT A 126 BILLION SECURITIES SCANDAL PROLONGED CLOSURES OF THE MARKET AND LATELY POLITICAL UNCERTAINTY FOLLOWING RELIGIOUS UNREST SENT STOCKS TUMBLING BY MIDDECEMBER THE INDEX STOOD 45 OFF ITS APRIL HIGH NOW INVESTORS APPEAR TO BE WAITING TO SEE HOW THE REFORMS FARE IN COMING MONTHS WITH PRICES STILL AT ABOUT 20 TIMES PROJECTED 1993 EARNINGS ANALYSTS WARN THE MARKET IS TOO EXPENSIVE FOR THE RISKS IT INVOLVES 9301040053 930104 PRINCETON'S BLINDER CHOSEN FOR ECONOMIC COUNCIL POST SPECIAL TO THE WALL STREET JOURNAL NEW YORK PRESIDENTELECT CLINTON HAS OFFERED A SEAT ON THE COUNCIL OF ECONOMIC ADVISERS TO ALAN BLINDER OF PRINCETON UNIVERSITY AND MR BLINDER HAS ACCEPTED THE NEW YORK TIMES REPORTS CLINTON AIDES AND OTHERS CLOSE TO THE APPOINTMENT AS SAYING MR BLINDER WOULD SERVE UNDER LAURA D'ANDREA TYSON WHOM MR CLINTON APPOINTED HEAD OF THE COUNCIL LAST MONTH THE ANNOUNCEMENT OF MR BLINDER'S APPOINTMENT IS LIKELY TO COME THIS WEEK THE TIMES REPORTED THE PAPER SAID MR BLINDER DECLINED TO COMMENT ON THE REPORTS MR BLINDER A MACROECONOMIST HAS BEEN AN ECONOMICS PROFESSOR AT PRINCETON SINCE 1969 HE IS AUTHOR OR COAUTHOR OF THREE BOOKS ON ECONOMICS IF CONGRESS APPROVES HIS APPOINTMENT TO THE COUNCIL THIS WILL BE HIS FIRST GOVERNMENT JOB 9301040052 930104 BUSINESS BRIEF WITCO CORP PAYMENT OF 105 MILLION BY FIRM WILL SETTLE LAWSUIT WITCO CORP NEW YORK SAID IT AGREED TO PAY 105 MILLION TO SETTLE A LAWSUIT BROUGHT BY ENVIRONMENTAL GROUPS AND NEW JERSEY FOR ALLEGED VIOLATIONS OF WATER DISCHARGE PERMITS THE MAKER OF SPECIALTY CHEMICALS AND PETROLEUM PRODUCTS SAID THE ALLEGED VIOLATIONS OCCURRED AT ITS PLANT IN PERTH AMBOY NJ THE COMPANY SAID IT ALSO AGREED TO ESTABLISH PROCEDURES AND INSTALL EQUIPMENT TO PREVENT ANY SUCH VIOLATIONS IN THE FUTURE WITCO SAID THAT ADEQUATE RESERVES HAVE BEEN TAKEN TO COVER THE SETTLEMENT SO IT WON'T AFFECT THE COMPANY'S FINANCIAL POSITION THE SETTLEMENT ENDS LITIGATION BEGUN IN 1989 WITCO SAID AND INCLUDES PAYMENTS OF 725 MILLION TO NEW JERSEY 750000 TO PERTH AMBOY FOR ENVIRONMENTAL PROJECTS AND TRAINING AND 2 MILLION TO THE ENVIRONMENTAL ENDOWMENT FOR NEW JERSEY INC FOR CERTAIN ENVIRONMENTAL PROJECTS 9301040051 930104 BUSINESS BRIEF USX CORP CONSORTIUM CONCLUDES STUDY OF RUSSIAN OIL GAS FIELDS A FIVECOMPANY CONSORTIUM INCLUDING A USX CORP UNIT COMPLETED ITS FEASIBILITY STUDY OF THE OIL AND GAS FIELDS OFFSHORE SAKHALIN ISLAND FOR RUSSIA THE CONSORTIUM WAS AWARDED THE FEASIBILITY STUDY CONCERNING THE DEVELOPMENT OF THE OIL AND GAS FIELDS LAST SPRING ACCORDING TO RUSSIAN ESTIMATES THE FIELDS HAVE ABOUT 750 MILLION BARRELS OF OIL AND 14 TRILLION CUBIC FEET OF NATURAL GAS SAID A SPOKESMAN FOR USX'S MARATHON OIL ALTHOUGH TWO APPRAISAL WELLS WERE DRILLED TEST RESULTS AND OTHER DETAILS OF THE STUDY WERE NOT RELEASED BECAUSE THE STUDY IS PROPERTY OF THE RUSSIAN GOVERNMENT SAID THE SPOKESMAN THE GROUP COMPRISES THE OPERATOR MARATHON MCDERMOTT INTERNATIONAL INC MITSUI & CO ROYAL DUTCH/SHELL GROUP AND MITSUBISHI CORP WE HOPE THAT SUITABLE CONTRACTUAL ARRANGEMENTS COULD BE AGREED UPON RESULTING IN A TIMELY DEVELOPMENT OF THE OIL AND GAS FIELDS BY THE CONSORTIUM SAID THE MARATHON SPOKESMAN 9301040050 930104 BUSINESS BRIEF WATTS INDUSTRIES INC CHARGES OF 42 MILLION SET FOR THE FISCAL 2ND QUARTER WATTS INDUSTRIES INC SAID IT WILL TAKE SPECIAL CHARGES OF 42 MILLION FOR THE SECOND QUARTER ENDED THURSDAY RELATED TO ENVIRONMENTAL LITIGATION AND RESTRUCTURING ACQUIRED BUSINESSES WATTS NORTH ANDOVER MASS SAID THAT ON A PRETAX BASIS THE CHARGE AMOUNTS TO 7 MILLION OF THE TOTAL 2 MILLION RELATES TO THE LITIGATION INVOLVING A PLANT IT SOLD IN 1978 AND 3 MILLION IS RESERVED FOR FUTURE ENVIRONMENTAL CLEAN UP COSTS AT THE PLANT THE REST OF THE CHARGES RELATE TO SHRINKING AND RELOCATION OF ACQUIRED COMPANIES THAT HAVE BEEN HURT BY MILITARY CUTBACKS WATTS A MAKER OF INDUSTRIAL VALVES SAID THAT ASIDE FROM THE CHARGES OPERATING EARNINGS FOR THE QUARTER WILL BE FLAT AS COMPARED TO THE YEARAGO QUARTER WATTS ALSO SAID THAT IT WILL RESTATE ITS PREVIOUSLY REPORTED FIRST QUARTER TO REFLECT ADOPTION OF SFAS NO 109 ACCOUNTING FOR INCOME TAXES THE CHARGE TO EARNINGS IS 3 MILLION OR 20 CENTS A SHARE PREVIOUSLY WATTS REPORTED FIRSTQUARTER PROFIT OF 99 MILLION OR 66 CENTS A SHARE 9301040049 930104 BUSINESS BRIEF WR GRACE & CO FIRM AGREES TO SELL THE STOCK OF ITS GRACE PETROLEUM UNIT WR GRACE & CO SAID IT AGREED TO SELL THE STOCK OF ITS GRACE PETROLEUM CORP TO AN UNNAMED BUYER FOR 125 MILLION SUBJECT TO CERTAIN WORKING CAPITAL ADJUSTMENTS THE SALE EXPECTED TO CLOSE BY THE END OF THE CURRENT QUARTER IS THE LATEST IN A SERIES OF ASSET SALES AND DIVESTITURES BY THE BOCA RATON FLA COMPANY AS IT FOCUSES ON ITS CORE SPECIALTY CHEMICAL AND HEALTHCARE PRODUCTS BUSINESSES GRACE HAS RAISED MORE THAN 1 BILLION SINCE LATE 1991 BY SHEDDING UNDERPERFORMING ASSETS AND EXPECTS THAT TOTAL TO REACH 15 BILLION BEFORE 1994 NOT INCLUDED IN THE TRANSACTION ARE GRACE PETROLEUM'S EAST TEXAS OPERATIONS WHICH ARE BEING SOLD TO SONAT EXPLORATION CO FOR 38 MILLION AND GRACE PETROLEUM'S INTEREST IN ANOTHER FIELD LAST WEEK GRACE SAID IT SOLD ITS COCOA AND CHOCOLATE BUSINESSES TO A LIMITED PARTNERSHIP OF WHICH IT OWNS 79 FOR 300 MILLION THE COMPANY ALSO COMPLETED THE SALE OF ITS ORGANIC CHEMICALS BUSINESS FOR MORE THAN 100 MILLION 9301040047 930104 IRKED BRIDES IN JAPAN PRACTICE A NEW RITE DITCHING THE GROOM THEY BOW TO PRESSURE TO WED EARLY BUT HEDGE THEIR BET BY PLOTTING WAY TO ESCAPE BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN EMIKO OGURA DISAPPEARED ON HER HONEYMOON IN AUSTRALIA LAST MONTH HER HUSBAND AND THE POLICE FEARED THE WORST THE 25YEAROLD SOUNDING DISORIENTED HAD PHONED HER BRIDEGROOM AND SAID THAT A KIND AUSTRALIAN WAS HELPING HER POLICE LAUNCHED A MANHUNT BACK IN JAPAN THE SEARCH MADE HEADLINES A DISTRAUGHT YOSHIHIRO FUJIEDA MS OGURA'S 29YEAROLD HUSBAND PLEADED ON AUSTRALIAN TELEVISION FOR THE KIDNAPPER TO RELEASE HIS LOVE SURPRISE SURPRISE MS OGURA HADN'T BEEN ABDUCTED AT ALL AFTER FOUR DAYS SHE WAS FOUND IN AN AUSTRALIAN MOTEL ROOM PERFECTLY FINE WITH FOOD IN THE FRIDGE SHE HAD DITCHED HER HUSBAND I WAS WORRIED WHETHER I COULD REALLY GET ALONG WITH HIM SHE SOBBED AT A NEWS CONFERENCE ON THE COUPLE'S RETURN TO JAPAN IN FACT SHE HAD BOOKED HER HIDEAWAY BEFORE LEAVING HOME JUST IN CASE SHE CHANGED HER MIND ABOUT MR FUJIEDA MS OGURA'S MARITAL ANGST HIT A NERVE IN JAPAN YOUNG PEOPLE THROUGHOUT THIS NATION ARE BECOMING INCREASINGLY BEWILDERED ABOUT MARRIAGE AND IT'S SHOWING NOTIONS OF ROMANTIC LOVE AND FEMINISM ARE SMASHING UP AGAINST HISTORICALLY INTENSE SOCIAL PRESSURE TO FIND A MATE AND GET MARRIED EARLY LOVE OR NO LOVE THIS AFTER ALL IS A LAND WHERE ARRANGED MARRIAGES ARE STILL COMMON TALK SHOWS JUMPED ON MS OGURA'S STORY DEBATING WHETHER SHE WAS TOO YOUNG TO HAVE WED A NEWSPAPER HEADLINE BLARED BRIDE'S ACTIONS BAFFLING SO MANY PEOPLE GET MARRIED BECAUSE THEY FEEL THEY HAVE TO NOT BECAUSE THEY LOVE THEIR PARTNER SAYS HARUMI MURAHASHI OF ZWEI CO A TOKYOBASED MATCHMAKING SERVICE AS A RESULT THE TOLERANCE FOR THEIR SPOUSE IS MINIMAL JAPAN'S DIVORCE RATE IS UP NEARLY 50 SINCE 1970 THOUGH IT'S STILL BARELY A FOURTH THE RATE IN AMERICA THERE ARE ALSO BELIEVED TO BE MANY JAPANESE WHO WANT TO DIVORCE BUT FEAR SOCIAL OSTRACISM OR IN THE CASE OF WOMEN LOSS OF ECONOMIC SUPPORT AND A GROWING NUMBER OF SPOUSES HERE ARE CALLING IT QUITS QUITE SOON OF THE 169000 COUPLES WHO DIVORCED LAST YEAR 8 HAD BEEN MARRIED LESS THAN A YEAR THERE'S A NAME FOR THE PHENOMENON NARITA RIKON OR NARITA DIVORCE A REFERENCE TO TOKYO'S AIRPORT WHERE SO MANY MARRIAGES CRASHLAND FROM THE HONEYMOON SOME WEDDING CONSULTANTS ARE RECOMMENDING AN ESCAPE HATCH WAIT TILL AFTER THE HONEYMOON TO REGISTER THE MATCH WITH CITY HALL THE STEP THAT MAKES IT LEGAL TALES OF DISASTROUS HONEYMOONS ARE PLENTIFUL HERE AN UNHAPPY BRIDE EN ROUTE TO EUROPE FOR A NUPTIAL TOUR INSISTED ON SITTING ON A DIFFERENT SIDE OF THE PLANE FROM HER NEW HUSBAND ANOTHER BRIDE ABANDONED HER HUSBAND SHORTLY AFTER THEIR HONEYMOON IN BALI BECAUSE HE WAS TOO TIMID TO VENTURE OUT OF THE HOTEL ROOM AT NIGHT THEN THERE WAS THE BRIDE WHO ACCORDING TO A TRAVEL AGENT COULDN'T STAND BEING IN THE SAME ROOM WITH HER HUSBAND HALFWAY THROUGH THEIR TRIP SHE MOVED IN WITH THE FEMALE TOUR GUIDE PARENTS FRIENDS AND BOSSES INTENSIFY THE NAGGING WHEN WOMEN REACH 25 MS FUKUHARA'S FATHER WHO IS APPROACHING 70 TELLS ME EVERY DAY THAT HE CAN'T REST IN PEACE UNTIL HE MARRIES ME OFF MEN FEEL THE HEAT WHEN THEY TURN 30 A 30PLUS ARTGALLERY MANAGER SAYS HE FELT SO PRESSED BY HIS PARENTS THAT HE BROUGHT HOME A WOMAN HE HAD DATED A FEW TIMES AND INTRODUCED HER AS HIS FIANCEE WHICH WAS NEWS TO HER SHE LATER SAID YES EVEN THE SUPPOSEDLY HIP TAUNT SINGLES YOU DON'T WANT TO GET MARRIED OR IS IT THAT YOU CAN'T ASKS A HEADLINE IN CLIQUE A WOMEN'S FASHION MAGAZINE CONSERVATISM LEADS MANY JAPANESE TO OPT FOR OMIAI OR AN ARRANGED MEETING OF A MAN AND A WOMAN SEEKING MARRIAGE THE MATCHMAKER DOES ALL THE SPADEWORK AND VOUCHES FOR A CANDIDATE'S FAMILY AND EDUCATIONAL BACKGROUND BUT MS FUKUHARA SAYS THE IDEA MAKES ME SCARED IT'S LIKE BETTING CAN YOU REALLY SAY HE IS THE RIGHT MAN RUSHING INTO MARRIAGE IS ESPECIALLY HAZARDOUS THESE DAYS BECAUSE MEN'S AND WOMEN'S EXPECTATIONS ARE DIVERGING THE TYPICAL YOUNG MAN HERE STILL WANTS A GIRL LIKE MOM WHO WILL RAISE HIS KIDS AND TEND TO HIS NEEDS BUT MANY WOMEN ARE SEEKING A NEW DEAL I WANT TO FIND SOMEONE WHO CAN DO EVERYTHING ON HIS OWN COOKING CHILDREARING EVERYTHING SAYS ONE 32YEAROLD MEN WHO SAY HOUSEWORK ISN'T THEIR BUSINESS UHUH JAPANESE MEN ARE SO CHILDISH ADDS TOMOMI MORISHITA 29 EVEN IF THEY TRY HARD TO SAY LADIES FIRST' THEY DON'T UNDERSTAND THE CONCEPT LIKE EUROPEANS DO ANOTHER WOMAN CHIHARU HASENUMA PUTS IT STARKLY THIS IS A TIME OF CRISIS FOR JAPANESE MEN SOME WOMEN ARE GIVING UP ON THEM MORE THAN 100 HAVE PAID 120000 YEN EACH ABOUT 1000 TO JOIN DANDIES MINAMI AOYAMA A SERVICE THAT PAIRS JAPANESE WOMEN WITH ELITE WESTERN MEN WORKING IN JAPAN WESTERN MEN DON'T REQUIRE THEIR WIVES TO BE QUIET AND POUR THEM SAKE LIKE JAPANESE MEN DO SAYS FUMIHARU YOSHIMURA THE SERVICE'S PRESIDENT JAPANESE MEN ON THE OTHER HAND OFTEN SAY WOMEN ARE BECOMING TOO FICKLE TOO CALCULATING KOJI KIDA A 29YEAROLD SALESMAN SAYS BEHAVIOR SUCH AS MS OGURA'S IN AUSTRALIA IS INCREASINGLY TYPICAL MARRYING LESS THAN ENTHUSIASTICALLY TO AVOID THE SHAME OF SINGLEHOOD ALL THE WHILE PLOTTING A POSSIBLE ESCAPE ASK KATSUHIRO HARA A 27YEAROLD EMPLOYEE OF A MEDICALEQUIPMENT COMPANY HIS GIRLFRIEND WHO INITIATED THE RELATIONSHIP BY ASKING HIM OUT TOLD HIM ON THEIR SIXTH DATE THAT SHE WAS ENGAGED TO ANOTHER MAN I WAS SHOCKED SHE WAS IMPORTANT TO ME SAYS MR HARA HER EXPLANATION FOR DATING MR HARA SHE SAID SHE FELT UNCERTAIN WHETHER THAT MAN WAS THE RIGHT ONE FOR HER HE SAYS MASAYOSHI HANAMI A MATCHMAKER SAYS THE TROUBLE WITH MANY YOUNG PEOPLE INCLUDING MS OGURA IS THAT THEY FEEL THEY HAVE TO LOVE THEIR MATES IT'S IDEAL TO HAVE A LOVE MARRIAGE HE SAYS FLIPPING THROUGH HIS BOOK OF PHOTOS OF 350 MEN AND WOMEN SEEKING SPOUSES BUT IF THAT'S IMPOSSIBLE I TELL THEM THAT LOVE AND MARRIAGE ARE DIFFERENT IT'S STILL POSSIBLE TO HAVE A HAPPY MARRIAGE THE MOST IMPORTANT THING SAY MANY JAPANESE ISN'T ROMANCE OR SEX BUT HAVING A GOOD BASE ON WHICH TO BUILD A FAMILY TO BE SURE MANY JAPANESE DO MARRY FOR LOVE SOME EVEN LIVE HAPPILY EVER AFTER JUN OHTA 44 A PUBLICRELATIONS MANAGER MARRIED 21 YEARS AGO BECAUSE I LOVED MY WIFE SO MUCH I KNEW IT HAD TO BE HER EVEN MS OGURA MADE AN ARDENT PRONOUNCEMENT AT HER NEWS CONFERENCE AFTER RETURNING FROM AUSTRALIA I STILL LOVE HIM SHE SAID OF MR FUJIEDA THEN SHE BURST INTO TEARS AND PUT HER HEAD ON HIS SHOULDER A SULLEN MR FUJIEDA PUSHED HER AWAY THE EPISODE HAS PROVED TOO MUCH FOR THE MAN SAYS HIS FATHER BUT THE BRIDEGROOM IT TURNS OUT HAD HEDGED HIS BETS AS WELL HE DIDN'T REGISTER HIS MARRIAGE TO MS OGURA BEFORE THE HONEYMOON AND DOESN'T PLAN TO NOW